U.S. Secretary of State John Kerry (2nd L), Canadian Foreign Minister John Baird (L) and Mexican Foreign Secretary Jose Antonio Meade (R) participate in a joint press availability January 17, 2014 at the State Department in Washington, DC. Secretary Kerry hosted the North American Ministerial with his counterparts to discuss ‘advancing North American prosperity, North Americas leadership on energy and climate change, international engagement, and citizen security.’
Mexico is making sweeping changes to its regulatory structures with the goal of increasing economic growth from various sectors, including energy. And while oil sector reforms have received the most attention, strengthening electricity and natural gas infrastructure to boost manufacturing is a short-term priority.
Investment from US companies and financial institutions is critical, but Mexico is also forming strategic partnerships with several Canadian banks and lenders.
“Banco Nacional de Comercio Exterior SNC (Bancomext) is ramping up efforts with domestic and foreign lenders – including Bank of Nova Scotia, Bank of Montreal, Canadian pension funds and Export Development Canada – to provide the capital needed to ensure the Mexican government’s wide-ranging reforms succeed in boosting growth and employment,” according to the Globe and Mail.
Manufacturers operating in Mexico face higher power and natural gas prices than those in Canada or the US, which is motivating policy reform in these areas.
“The electricity reform is as dramatic as the one involving oil but much less visible to the people,” Bancomext chief executive officer Enrique de la Madrid said.
“The challenge is to see the three of us – the three amigos – to see how we can work together for the production of goods and services and sell them to other regions of the world,” de la Madrid said.
