Jorge Peydro Aznar, head of the Economic and Commercial Section of the European Union delegation in Mexico, said that the country is a land of opportunity for companies and can be even more, but it needs to offer greater physical security and legal certainty to investors.
“The economic and commercial relations between the European Union and Mexico are solid and Mexico is a land of opportunity for European companies, just as the European Union is for Mexican companies,” he said.
He added that the rapid signing and entry into force of the modernized agreement between Mexico and the EU will create the appropriate framework to give a great boost to relations and will facilitate the opportunities that exist to become a thriving reality.
“Today, Mexico’s land of opportunity can be much more if a series of important improvements and decisions were decisively undertaken in terms of legal certainty and public security,” said the law graduate from the University of Valencia.
The European Union’s foreign direct investment in Mexico accumulated until 2022 amounted to 194.8 billion euros, while Mexican capital in the bloc was 42.3 billion euros, according to the Economic Bulletin of Spanish Commercial Information Spain and Mexico: a strategic and dynamic relationship.
Currently, the EU is Mexico’s third trading partner, behind the United States and China, the document detailed.
“Physical security, since criminality both against people and businesses continues to be the great scourge that affects Mexico,” said the master in European Legal Studies from the University of Exeter.
“Many companies established in Mexico assume this problem as a fixed cost in their activities (which should not be the case), but for many others, especially those that have not yet established themselves in Mexico, it often represents an insurmountable barrier,” he commented.
He said that sustainability policies still need a decisive push from the authorities, whether in renewable energy, water use, electromobility and the circular economy.
“Many European companies have global climate neutrality goals and commitments, which are difficult to meet in Mexico if, for example, electricity continues to be generated mainly with hydrocarbons,” he said.
He said that Mexico became a land of opportunity for European investment, thanks to its border with the United States, the coast of the Atlantic and Pacific oceans, as well as the Free Trade Agreement with the United States and Canada (TMEC).
“The TMEC gives preferential access to the enormous North American market, and for European companies it complements the free trade agreement with the EU,” he said.
“The global geopolitical situation, both due to the pandemic and the unacceptable invasion of Ukraine by Russia or the tensions between the United States and China, place Mexico in an enviable international position,” he commented.
“The Mexican economy shows economic and political stability, despite an increase in polarization and certain problems such as public security and legal certainty,” he said.
Source: forbes
