The Economic Advisor asserts that Mexico has undergone a major transformation by separating politics and economics. "Today we are a mature country where political change can occur without triggering an economic crisis."
How has Mexico's economy been affected by the global economic crisis, especially in the last year?
I don't know of any country that hasn't been affected by the crisis. While three years ago it was predicted that we would achieve 5, 6, or 7% economic growth, as has been the case in Mexico for the last ten years, this year's forecasts are around 2 or 3%. However, Mexico has managed to consolidate its economy; we don't have the peso-dollar volatility that so greatly influences our situation.
It's true that the peso has devalued against the dollar in recent days, but it's also true that the dollar was very weak against the peso. Mexican business owners were complaining that the peso was too strong and making them less competitive, so you could say we brought about this devaluation. From an outside perspective, it might seem that Mexico is losing economic stability; however, from within, we see that we are adjusting to what Mexican businesses need to compete in the current market.
We are the second largest recipient of foreign investment, after China. This year, we anticipate 3% growth, which is very promising compared to the major European, US, and Latin American countries.
– Speaking of Latin America, could the economic problems it is going through affect the good performance of the country's economy?
We are a solid country, which has managed to break free from the domino effect with respect to the rest of the Ibero-American countries.
The difficult situations faced by some Latin American countries haven't affected us as much as the Tequila Effect did for those countries. While we maintain free trade agreements with many South American countries, it's also true that our main trade is with the United States, Canada, and Europe, and, to a lesser extent, with some Latin American countries.
The transition from 75 years of political power to the present has been seamless, giving investors a great deal of confidence.
– Has North American investment decreased, given the increase in capital coming from Europe?
No. The United States wants to maintain a strong presence in Mexico, precisely because European investments are arriving in a surprising way.
In this regard, the banking sector is a good example. BBVA and Santander are the largest banks in Mexico. The last remaining Mexican bank, Banamex, was acquired by Citibank. This reflects the US interest in Mexico. And the same is happening in many other sectors.
In addition to the Spanish presence, there is also the French and German presence, which confirms the interest of the United States.
– And how would you assess relations with Europe, following the Free Trade Agreement agreed with the EU?
First, Mexico signed a Free Trade Agreement with the United States and Canada in 1994, which has led to a significant increase in exports and imports. Some products have seen their trade flows increase by as much as 600%.
Meanwhile, the Mexican government realized that trade with Europe was declining: it had gradually fallen from 16% to 6%. This led them to anticipate that a free trade agreement with the EU would facilitate the flow of Mexican products to Europe and vice versa. Similarly, Europe noted that its products were no longer entering the European market as easily as before. Finally, the agreement was signed in 2000, and in the following year, trade experienced approximately 30% growth.
By 2007, tariffs will no longer be required in trade between the EU and Mexico.
– Does Spain continue to be the bridge for relations between Mexico and Europe?
Spain is the natural bridge between Mexico and Europe, due to culture, language, history… but this situation and potential should be taken better advantage of by both sides.
Thus, when we talk about ports, we see that most of the goods traded between Europe and Mexico leave through the port of Rotterdam, or German and British ports, not Spanish ports. The same is true for the entry of Mexican products into Europe. We are working on this issue with the ports of Barcelona and Valencia to strengthen the trade corridor between Mexico and Spain.
Both the Spanish and Mexican trade promotion offices are very active in this regard. The realities of Spain and Mexico in international trade, and their export and import figures, are not reflected in the bilateral trade figures between the two countries. We have a trade balance of around 3.000 billion dollars, which is very small considering that Spain is the natural gateway between the two countries.
Around 70% of Mexican exports are oil and derivatives, and this fact can give an idea of the very interesting niche that remains to be taken advantage of in trade.
At the same time, when a Spanish and a Mexican businessperson meet, successful business deals are always the result. From the Embassy, we connect them and follow up on the process.
– In which sectors of economic activity is Spanish investment focused? In this sense, tourism should be mentioned, which is a very important asset.
Without a doubt, the tourism sector is one of the main areas of Spanish investment in Mexico. It is a very dynamic sector, and Spanish businesses have had considerable success with these investments in our country. Partnerships with Mexican hoteliers are being sought, which, in addition to investments, could prove to be very attractive business opportunities.
Spanish investment extends to all sectors. The Madrid Chamber of Commerce, for example, is organizing a chemical and pharmaceutical trade fair in May, which will be attended by 100 Spanish businesspeople.
On the other hand, energy investments will gain importance once Mexico legislates on investment in this sector, as Spanish businesses are very interested in this field. Spanish banks, hotels, and SMEs have a strong presence in the Mexican market.
Also noteworthy is the presence of Spanish business delegations such as CEOE and ICEX, in addition to the numerous trade missions organized by Spanish chambers of commerce. The Higher Council of Chambers of Commerce, Bancomext, and the Mexican Ministry of Foreign Affairs are actively working to strengthen relations between our two countries.
Despite our uncertainty regarding the global economic environment, projects between Mexico and Spain are moving forward. Last year, Their Majesties the King and Queen visited Mexico with 20 presidents of the most important Spanish companies with investments in the country. Simultaneously, a forum was held in Monterrey, attended by some 90 SMEs. How many countries today offer such an event for Spain? This clearly demonstrates our mutual interest.
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