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Chapter | Hidalgo from The Report: Mexico 2019

With an economy traditionally based on mining, Hidalgo had lagged behind some of Mexico’s more prosperous and dynamic regions. However, the new administration has actively sought to foster growth in new sectors including renewable energy, sustainable transport, agro-industry, pharmaceuticals and chemicals; develop infrastructure; and create a more business-friendly regulatory framework. As a result of these efforts, it has recently recorded growth and foreign direct investment figures that exceed the national average. Hidalgo also has several advantages including close proximity to Mexico City and major road networks, a range of both new and well-established industries operating in the area, and a young and educated workforce. This chapter contains interviews with Omar Fayad Meneses, Governor of Hidalgo; José Luis Romo Cruz, Executive Secretary of Public Policy; Sergio Vargas Téllez, Secretary of Economic Development, State of Hidalgo; Camilo Serrano, General Manager for Mexico, Atlas Renewable Energy; and Cassiano De Stefano, CEO, Grupo Modelo.

Chapter | Industry & Mining from The Report: Mexico 2019

A number of factors bode well for Mexico’s industrial sector. Cheap labour costs, proximity to the US market and improving human resources have attracted global firms. The sector in Mexico is making gains in some strategically important areas, and strong performance in the mining, electronics and agri-business segments is driving overall growth. Even as protectionist measures and bilateral trade tensions dominate the headlines, Mexico is strategically positioned to support Chinese manufacturers looking to bypass US tariffs. A number of risks and uncertainties remain for several industrial segments, however. The shortage of oil and natural gas supply, the absence of a government-led policy and criminal activity along supply routes are causes for concern. Still, investors will likely see ample opportunities in Mexico’s strong ties to the global economy, especially the US and China. This chapter contains an interview with Francisco Cervantes, President, National Confederation of Industry Chambers.

Chapter | Automotive & Aerospace from The Report: Mexico 2019

Over the last two decades Mexico has consolidated its position as the leading automotive exporter in Latin America and a major player in the industry worldwide. The country hosts production plants from nine major international automakers, manufacturing passenger vehicles, light and heavy tractors and trucks, in addition to plastic, aluminium and steel component. The country is also steadily emerging as an important regional and international player in the aerospace industry. Demand for commercial aircraft is expected to double globally by 2035, and it is well situated to leverage its position to increase domestic and foreign investment in the industry. Mexico has a specialised and skilled workforce and unparalleled access to the US market. Manufacturers are preparing for the Fourth Industrial Revolution by training workers in new design and production processes. This chapter contains interviews with Steffen Reiche, CEO, Volkswagen de México; and Daniel Parfait, President, Safran México.

Report | The Report: Mexico 2019

In 2018 Mexico’s economy ranked second in Latin America and 15th in the world in terms of GDP, which totalled $1.22trn, according to the World Bank. In 2019 the newly elected President Andrés Manuel López Obrador has pushed ahead with efforts to meet his pledge to tackle corruption and implement austerity measures within the government, to reduce costs and curb excessive expenditures.

Chapter | Industry & Retail from The Report: Papua New Guinea 2019

Already major contributors to the nation’s revenue base, Papua New Guinea’s industry and manufacturing sectors hold significant potential for future investment and development. As such, the administration of Prime Minister James Marape remains devoted to a course that will encourage and protect businesses while working towards a reduction in the national import bill. This policy serves to both hedge against the boom-and-bust cycle of the resource economy, and avoid the ongoing issues the country has faced in obtaining foreign currency by replacing imported inputs with domestic produce. Meanwhile, with a mood of cautious optimism, PNG’s retail sector is recovering from a period of uncertainty caused by the earthquake in Hela Province in early 2018. That same year was marked by sluggish growth, before the APEC Leaders’ Summit in November 2018 triggered an upturn in the hospitality and general retail sectors, and encouraged businesses to invest with more confidence. This chapter also contains interviews with Stan Joyce, Managing Director, South Pacific Brewery; Mahesh Patel, Managing Director, CPL; and Nathaniel Ho, Executive Director, Rimbunan Hijau Group.

Chapter | Legal Framework from The Report: Papua New Guinea 2019

This chapter examines the legal system of Papua New Guinea, as distributed across the national, provincial and local levels, including those governing: investment promotion; regulation of companies; taxation and tax credits; partnerships and joint ventures; personal property; power of attorney; land rights; patents; employment conditions; foreign exchange control; and sector-specific legislation across the extractive industries. This chapter also contains a viewpoint from Eunice Parua, Partner, Leahy Lewin Lowing Sullivan Lawyers.