After a decade of slow growth, averaging 1.3% per year, Mexico’s agriculture sector made a comeback in 2014, outperforming the wider economy and highlighting the sector’s counter-cyclical nature. A number of structural inefficiencies, particularly in relation to the ongoing prevalence of small farmers and the slow adoption of technology, continue to limit growth. However, increased productivity…
In the past decade, Mexico’s education sector has made notable progress, despite the pressure the nation’s demographic boom has placed on its system. Coverage, especially in primary education, has increased considerably. The system is now faced with the substantial challenge of raising the overall quality of education and increasing coverage at the post-secondary and tertiary levels, while reducing…
The principal taxes payable by commercial and industrial enterprises operating in Mexico and, in certain cases, by foreign companies and individuals, are those levied by the federal government. State and municipal governments have more limited tax powers and receive allocations of some federal taxes collected within their borders. The principal federal taxes are income tax, value-added tax, Customs…
An executive order was published in the Federal Official Gazette on August 11, 2014, amending various provisions of the Foreign Investment Law. The amendments came into force on August 12, 2014. The following are the most important aspects of these changes to be taken into consideration by foreign investors: a) The exploration and production of hydrocarbons, as well as the planning and control of the…
Interview:Angel Gurría What factors are contributing to Mexico’s economic rebound and continued strong growth? ANGEL GURRÍA: The Mexican economy has faced repeated delays to recovery over the past few years due to a combination of weak global demand, domestic financial problems and, until more recently, insufficient structural reforms. The ongoing strengthening of the US economy, an easing…
Interview:Enrique Peña Nieto How can Mexico capitalise on its unique strategic location to become a logistics hub? ENRIQUE PEÑA NIETO: Mexico launched the National Infrastructure Programme to become a high-added-value global logistic hub. This broad development agenda –with record-high public-private investments of up to $500bn– foresees the construction of the New Mexico City International…
Interview:Andrew Robb How much does trade with Mexico stand to increase under the Trans-Pacific Partnership (TPP)? ANDREW ROBB: TPP members account for nearly 40% of the global economy and 25% of global trade, making the TPP the world’s largest regional free trade agreement (FTA). Mexico is already Australia’s largest merchandise trading partner in Latin America, with almost $2bn in goods…
Interview:Juan Pardinas What can be done to improve Mexico’s global ranking in terms of the ease of doing business? JUAN PARDINAS: The cost of electricity and the procedures related with registering property are two of the main obstacles affecting the country’s competitiveness. The government is hoping that the energy reform will lead to cheaper electricity and a more competitive market.…
Interview:Francisco N González Díaz What is the importance of the Pacific Alliance in terms of foreign direct investment (FDI) to the Latin American region? FRANCISCO N GONZÁLEZ DIAZ: The four countries that belong to the Pacific Alliance together comprise the world’s ninth-largest economy and account for 47% of FDI flows into Latin America, receiving more investment than Mercosur member…
Interview:José Marcos Ramírez Who are the main beneficiaries of bank loans? JOSE MARCOS RAMÍREZ: At present, 84.3% of credit is provided by private sector banks and 15.7% by government-owned financial institutions. Private sector loans are 50.5% corporate, 19.1% mortgages and the rest is consumption, including 11.3% on credit cards. The real tragedy is that bank credit to the non-financial…
