VIVA NOLA March 2019 r2

ECONOMIC DEVELOPMENT
Doing Business in Mexico
by Alejandr a Guzm an
@aleguzm an
Our southern neighbor, Mexico, has a
vibrant economy and is the United
States?second largest export market
after Canada. Mexico has a large,
diversified economy that is linked to its
deep U.S. trade investment relations.
With 120 million citizens and a rapidly
growing middle class, Mexico represents
an attractive market for investors and
foreign businesses.
Monterrey, Mexico City and Guadalajara
are the major business hubs in Mexico.
Growing up and working for more than
10 years in Monterrey, I can attest that
this city is, in fact, one of the most
important business hubs in the country.
Monterrey is home to an elite university
system, a diverse group of
well-established multinational
companies, and a burgeoning class of
globally-competitive startups.
The cosmopolitan nature of the city
created a demand for international
education, making it possible for most
children to obtain bilingual education
starting in preschool all the way
to higher education. The
Monterrey Tec is the most
important higher education system in
Latin America and has hundreds of
agreements with international
universities to support exchange
programs. As expected, the culture of
internationalization produces a highly
competitive workforce.
Recently, Mexico passed reforms in the
energy, telecommunications, labor,
financial and educational sectors. The
reforms are intended to increase the
country?s global competitiveness. The
energy and telecommunication reforms
can offer new opportunities for U.S.
firms.
As far as international trade agreements,
it is important to watch the development
of the ?new NAFTA.? Late 2018, the U.S.,
Canada, and Mexico signed a trade deal
to replace NAFTA at the G20 summit in
Argentina. It is now known as USMCA -
the United States-Mexico-Canada
Agreement. Although President Donald
Trump, Canadian Prime Minister Justin
Trudeau and former Mexican President
Enrique Peña Nieto signed the new
agreement, it requires ratification by
all three governments.
Regardless, Mexico is one of the finest
destinations for U.S. exporters. Taking a
look at the Mexico market is worth value.
For investors and business leaders
interested in this market, there are
various resources to consider including
the U.S. Commercial Service. Tasked with
helping companies to expand, it has
locations in Monterrey, Mexico City,
Guadalajara and New Orleans.
Most recently, the Global Connect
coalition began helping to bridge the gap
between small and medium-size
businesses and global resources and
networks. Partners include the New
Orleans Business Alliance, the World
Trade Center of New Orleans, GNO, Inc.,
the Port of New Orleans, the Port of
South Louisiana, and Louisiana
Economic Development.
Visit NOLABA.org for more information
on economic development, Global
Connect, and international business
events.
Until next time!