Canadian companies trust Mexico and will continue investing
As regional partners, the relationship between Mexico and Canada is solid and with a promising future, this is also seen by the representatives of Canadian companies that already have a presence in the country and that somehow know the importance of consolidating their investments.
According to Peter Hall, Chief Economist and Vice President of Export Development of Canada (EDC for its acronym in English), companies in his country have left behind the doubts about the government of Andrés Manuel López Obrador and trust that there will be controversial decisions that affect your investments.
Canadian companies "think that this administration will respect the investments they have made," Hall said, so he said "they are not going to go, on the contrary, they are planning to increase their investments."
And spoke specifically of companies such as Magna, Dinamar, Martinrea and also the Association of Autopartners of Canada has confirmed the desire of its members to not only continue in Mexico, but to increase capital in the development of productive projects.
In that sense, it is essential for the national economy to attract foreign investments, especially from countries such as Canada, which through the North American Free Trade Agreement (NAFTA) have become strategic regional partners.
Canada ranks second as a buyer of Mexican products and the sixth largest supplier in Mexico, according to the Ministry of Economy and from 1999 to 2017, the amount of Canadian investment in the country totaled more than 33 billion dollars with companies like Bombardier , Magna and Scotiabank.
Peter Hall pointed out that according to the latest issues of ProMéxico, "there are 9.4 billion dollars that are insured for the first four months of this year, it is a very substantial amount", so he trusts that the AMLO government will respect the conditions for these amounts translate into infrastructure and more jobs.
"Losing that for the use of policies that are negative for foreign investment, would have immediate impact on the economy, if any of these is delayed would see an immediate impact," warned Peter Hall in statements that retains The Economist.
The executive also highlighted the importance of the opening of the energy sector in Mexico, with new market regulations that have offered greater certainty to companies interested in developing projects in the country.
"One of the concerns at the global level is access to resources that are politically assured or protected," Hall said, referring to hydrocarbons and oil resources, so the current conditions prevailing in Mexico give them a lot of confidence to project long term future investments.
"The regulation of the energy sector represents a potential and generates much expectation, so the desire of Canada is that this opening is not interrupted," as one of the main reasons for this concern is the desire of López Obrador to review the contracts derived from the reform.
However, Hall said that "Canada has existing and future investments in the energy sector, hence the regulation of this industry in Mexico has been very important."
According to figures from the Ministry of Economy, 35.1 percent of the accumulated FDI in the energy sector comes from Canada, which gives greater importance to the position presented by the manager.
In this way, Canadian companies trust in Mexico and will continue investing in an environment that gradually begins to take off doubts and uncertainty and delineates a government policy that seeks to encourage the arrival of foreign capital to the country.
via: El Seminario