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Reforms Impact the Nation #Mexico Our World Tuesday, December 9, 2014 MEXICO Reforms impact the nation This supplement to USA TODAY was produced by United World Ltd., Suite 179, 34 Buckingham Palace Road, London SW1W 0RH – Tel: +44 20 7305 5678 – [email protected] – www.unitedworld-usa.com The newly unified government agenda has removed barriers to Mexico’s socioeconomic progress and created increased freedom of investment in a variety of key sectors that is expected to see GDP more than double this year and a seismic shift in some of its most vital industries n less than two years, been recorded in the last 30 and our exports will grow are outstanding civil engineering ing impact of the govern- over the next two years, with Mexico has succeeded in years, an average rate of 2.6%. quite optimistic,” President feats, such as the $2.2 billion ment’s far-reaching reforms 80% connected to wind pow- unifying its government And yes, it is positive, these Peña Nieto acknowledges. Durango-Mazatlán Highway, in 11 key sectors – including er generation, 15% to solar around a set of far-reach- are positive figures, but it’s “We’re going to reach that designed to enable safe, the historic Energy Reform – and 5% dealing with biomass ing reforms that are boosting quite evident that we need goal; the forecast for next year speedy transit of commerce have created unprecedented or hydroelectric projects. Iits economy and spurring ac- to increase this rate more, is 3.7%, based on all of the across the Sierra Madre and optimism for Mexico’s fu- Ignacio Galán, Chairman tivity across North America, to have more social devel- groundwork prepared for that Mexico’s northern states. ture, with international insti- and Chief Executive of particularly in the United opment and a better stan- to happen, and the reforms The 140-mile mountain road tutions like the World Bank Spain’s Iberdrola, the largest States. While still in various dard of living for Mexicans. will boost our economy. It is crossing entailed construct- and the IMF applauding the private generator in Mexico, stages of implementation, the Therefore, we needed the re- clear that the implementation ing 61 tunnels and 115 bridg- country’s direction and ma- recently told the Financial benefits of these deep struc- forms. Right now, we are see- of the reforms will not happen es, including the magnificent jor investors lining up to take Times: “Mexico is going to tural reforms have already be- ing signs of a better economy, overnight, and the effect of Baluarte Bridge. It was the part in its resurgence. be one of our main invest- gun to show up. more growth.” each of one the reforms will final piece in completing the IMF Managing Director ment destinations in the next Mexico’s GDP growth is To what does Mexico owe not happen overnight. Most 715-mile Mexican Federal Christine Lagarde recently few years, with up to $5 bil- forecast to more than dou- this bright outlook? The an- of the benefits of these re- Highway 40, which con- declared Mexico “the only lion through to 2018 in new ble this year, compared to swers, experts argue, come in forms, yes, are evident. People nects Mazatlán on the Pacific emerging market country combined-cycle gas turbine last year, when it fell to 1.1%. the form of the newly unified are starting to see the results. Ocean with Matamoros on that has passed such num- plants and wind farms. As a The country is on track to hit government agenda that has But it will take some time to the Gulf of Mexico and carves ber of sweeping reforms, in result, we will be producing the government’s target of removed barriers to progress see the full impact of the re- out a superhighway offering a such a short time, and with more energy in Mexico than 2.7% for 2014, and its GDP and created increased free- forms. And eventually, we’ll 12-hour coast-to-coast drive. such broad political support.” in any other country where goal of 3.7% for 2015 chimes dom of investment in a vari- Since Mr. Peña Nieto took we have operations.” Good with observations from the ety of key sectors. office in late 2012, he has news, as cheaper electricity International Monetary Fund Under Mr. Peña Nieto’s PEopLE ARE staRTING to SEE THE sought to forge closer links will be vital to powering the (IMF) that Mexico is on its way leadership, competing parties RESULts. BUT IT wiLL taKE SOME within Latin America and country’s plans to boost its to a steady clip of nearly 4% an- in Mexico’s government came TIME to SEE THE FULL IMpaCT OF bolster ties with nations fur- industrial competitiveness nual growth from 2016-2019. together to break decades of ther afield. In November, the and attracting further for- During this time, Mexican political gridlock and revamp THE REFORMS. AND EVENtuaLLY, President announced that eign interest. GDP expansion will be rough- the country’s economic and we’ll see it reflected in how China and Mexico are to set U.S. Secretary of State John ly double the rate in Canada political system, fundamen- ouR ECONOMY wiLL GRow” up a $2.4 billion investment Kerry has underscored the and will surpass growth in tally altering the country’s tra- fund to support infrastruc- special ties that the United the U.S. by more than one jectory. EnRiqUE PEñA niETO, President of Mexico ture, mining, and energy proj- States and Mexico share. percentage point, with this It is difficult to overstate ects, and that the two coun- “There are really few coun- gap widening in the medium the historic nature of the tries are eyeing an oil deal tries with whom the United term. However, these fore- changes in a country where see it reflected in how our In April, the govern- worth up to $5 billion. States enjoys as dynamic casts fail to take into account many powerful institutions economy will grow. We’re ment presented its $596 bil- Mexico’s renewable energy and as close a relationship as the full impact of last year’s have resisted modernization seeing it. Next year we will lion National Infrastructure sector attracted $11 billion in the one that we enjoy with array of reforms. If the strat- for the better part of a centu- see the signs, and in the up- Program 2014-2018 that FDI between 2003-13, with Mexico,” he said. “Our in- egy is carried out as planned, ry. The changes include the coming years, we’re expect- targets six specific sec- wind power leading the pack. terests are obviously inter- Mexico could achieve a 6% opening up of Mexico’s state- ing to have more expedited tors: Communications and The investment came mainly twined in many ways. We are growth rate in the years to owned oil and gas sector to economic growth. And this transport, energy, water, from Spain, Germany and the neighbors, but we also have a come, with an increasingly private investment, a major is the same forecast that we health, urban development U.S. and interest is far from common set of objectives, a competitive set of industries overhaul of the country’s edu- see by financial analysts that and housing, and tourism. on the wane. Trade and in- common set of goals and as- that could propel Mexico past cational system, and new laws know the Mexican economy.” Compared to past infrastruc- vestment agency ProMéxico pirations. And because of our China as the world’s largest restricting the reach of pow- One of the key mechanisms ture plans, it pays special at- announced in September 80 histories, our people are con- exporter to the United States erful monopolies that have available to governments to tention to boosting the com- renewable energy projects nected as closely as any two by 2018, according to The traditionally dominated the encourage economic growth paratively underdeveloped worth $8.5 billion will take off peoples on Earth.” telecommunications sector, ‘and inspire confidence and South-Southeast region, as Economist. “We need higher econom- among other important mea- optimism among investors well as enhancing the North ic development,” President sures that include a stream- and society is public spending and Central regions, and the A UNITED WORLD SUPPLEMENT PRODUCED BY: Enrique Peña Nieto declares. lining of the tax system and on infrastructure investment. government is particularly José Ramón Inguanzo, Editorial Director; “The greatest challenge in the electoral governance. Mexico’s infrastructure ambi- keen for the private sector Livia Mirón, Country Director; area of economics and social “The statistical figures tions rank among the biggest to become actively involved. Marina Carracedo, Country Coordinator; development is that we have about how our industry will on the continent and it has Taken together, these de- and Fátima Ruiz-Moreno, Regional Director reached a higher rate that has grow, how jobs will grow, already completed numerous velopments and the emerg- Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 2 Distributed by USA TODAY MEXICO Historic deals emerge from world-leading integration New business ventures unite one of the most extensive economic unions in the world further as Mexico removes barriers to foreign investment fter years of wait- ing and months of speculation, the results of Mexico’s historic reforms Aare starting to become known, with strong impli- cations for investors in the U.S. and across the world. Recent cross-border trade and investment deals illus- trate how the new frame- work opens vital sectors to trade and investment, in a strong step toward the real- ization of a common North American market.
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