2014 Mexico City Blog: Ildefonso Guajardo and Luis de la Calle on Mexico's Economy

By
Carin Zissis

The secretary shared his views on Mexico's economic outlook following welcoming remarks by AS/COA's Susan Segal and ProMexico's Francisco González.

Speakers:

  • Ildefonso Guajardo, Secretary of Economy
  • Luis De la Calle, Partner, De la Calle, Madrazo, & Mancera

In a conversation with Luis De la Calle, the economy secretary discussed a range of economic topics relevant to this current period of Mexico implementing major constitutional reforms.

On the topic of trade, Guajardo reflected on the significance of 20 years of the North American Free Trade Agreement (NAFTA) for integration, noting that foreign direct investment in Mexico grew to an average of $20 billion each year during that time. But he also pointed out that to improve on NAFTA, it's necessary to facilitate border crossings and to improve infrastructure. 

North America has the potential to become a global manufacturing power, said the secretary, as well as that education reform is important to ensure a pool of skilled labor in Mexico to boost innovation and productivity. He pointed out that the common denominator of the reforms is to give equal access to all players, including small- and medium-sized enterprises. 

But Guajardo also looked beyond North America and across the Pacific to Asia, commenting on Mexico's role in the Pacific Alliance and Trans-Pacific Partnership (TPP). He noted that Pacific Alliance members are observers of the TPP and that Japan's entry into TPP negotiations has leant a more cautious dynamic to the process.

Watch an interview with Secretary Guajardo (en español).

Watch a video of the discussion (en español):

The discussion followed opening remarks. ProMexico's Francisco González also looked back on NAFTA, providing an overview of how various Mexican commercial sectors have grown in the two decades since its implementation. For example, manufacturing exports have multiplied eightfold since 1995. But NAFTA has also been crucial to integration; some 40 percent of Mexican exports to the United States contain U.S. products. 

Opening the conference, AS/COA President and CEO Susan Segal explained why Mexico is the most important destination for foreign investors in Latin America, and one of the most important among all emerging markets. In 2013, Mexico attracted $35 billion in foreign-direct investment (FDI)—a level that is 178 percent of FDI levels in 2012. She attributed investment grade improvements by rating agencies to the structural reforms initiated during the Peña Nieto government. 

Watch opening remarks (en español):