TLCUEM Revision Strengthens Spain-Mexico RelationshipBy Sofía Hanna | Wed, 11/18/2020 - 18:18
Mexico and Spain have been adding up to their commercial relationship for some time now, first with a delegation of Mexican companies that received administrative, promotion, legislative, internationalization and communication support in Spain and now with a revision of the TLCUEM between the Spanish Minister of Foreign Affairs, Arancha González Laya and the Mexican Minister of Economy Graciela Márquez.
According to a previous MBN article, Spanish foreign direct investment in Mexico during the López Obrador administration amounts to US$6.07 billion, despite the COVID-19 pandemic. This represents 12 percent of the total investment received in the last 20 years. With the TLCUEM revision, there could be more investment opportunities.
Graciela Márquez stated that there are multiple windows of opportunity in several sectors that could be taken into consideration regarding these changes. She also emphasized Spain’s role as the main investor in Mexico from the EU and the country’s second commercial partner. A renewal of the agreement is planned for 2021, bringing in a commercial relationship of US$75 million, according to Forbes.
As mentioned in a previous MBN article, the renovation of trade agreements can also help Mexican SMEs to get involved in internationalization. Having solid platforms would make it easier to participate in a global market. Another MBN article states governments, joining efforts with private sectors, international organizations and academia, could help MSMEs in their process of internationalization. Another project that seeks to push Mexican ventures in the EU is the Call 2020 in Support of Decentralized Cooperation Mexico-France, which has the goal of developing support networks between local economic development actors, according to an MBN article.
New investment opportunities are good news for Mexico, but there are also factors that have to change for this to come to fruition. As mentioned in a previous MBN article, Mexico’s position as an investment destination could be compromised due to the lack of certainty in the way the country does business, especially in the energy sector which has been a major business attractor for Spanish companies.