Breaking Business News in Mexico: 5 Recent Developments You Need to Know
Mexico is a country known for its dynamic business landscape that presents unique opportunities and challenges. In recent years, the country has seen a slew of developments that have significant implications for both local and global businesses. In this article, we explore five of the most noteworthy business news events that have taken place in Mexico in the past year.
1. Mexico’s New President and His Vision for the Economy
In 2018, Mexico’s voters elected Andrés Manuel López Obrador as their new president. López Obrador, also known as AMLO, brought with him a vision of economic growth that is centered around social welfare schemes and increased government intervention. He has promised to tackle corruption and promote fair competition, but many businesses are concerned about the stability of the country’s macroeconomic policies under his leadership.
2. NAFTA Negotiations and the USMCA
In 2019, the United States, Mexico, and Canada reached an agreement to replace the North American Free Trade Agreement (NAFTA) with the United States-Mexico-Canada Agreement (USMCA). The new trade agreement includes provisions on intellectual property, labor, and environmental standards, which are more stringent than those in NAFTA. The USMCA represents a significant milestone for Mexican businesses as it guarantees sustained access to the North American market.
3. AMLO’s Cancellation of the Mexico City Airport
One of the most controversial decisions made by López Obrador’s administration was the cancellation of the new airport for Mexico City. The project, which was 30% complete, would have cost the government over USD 13 billion. The cancellation led to the collapse of a consortium of firms that were invested in the project and left Mexico without a vital transportation hub that could have facilitated economic growth.
4. The COVID-19 Pandemic
2020 was a year that brought unprecedented challenges to the global economy, and Mexico was no exception. The COVID-19 pandemic hit the country hard, leading to widespread disruptions in business operations, supply chains, and consumer confidence. The pandemic also exposed weaknesses in the country’s healthcare infrastructure and further deepened economic inequality.
5. The Rise of Renewable Energy
Mexico has long been known for its vast natural resources, particularly oil and gas. However, recent years have seen a notable shift towards renewable energy sources. In 2019, the government set a target of generating 35% of the country’s energy from renewable sources by 2024, up from 25% in 2018. This has led to increased investment in solar, wind, and hydroelectric power plants, presenting attractive opportunities for both local and international investors.
In Conclusion
Mexico’s business landscape is evolving at a rapid pace, with new developments happening all the time. Understanding the implications of the events outlined above can help businesses navigate the country’s economic landscape more effectively. While each of these developments presents its unique set of challenges and opportunities, they collectively demonstrate the potential for continued business growth and investment in Mexico.
