Press Release: Trans-Pacific Partnership Negotiations Concluded

10/5/2015 Secretaría de Economía

2000px-SE_logo_2012.svgToday, Mexican Secretary of Economy Ildefonso Guajardo Villarreal, along with his Trans-Pacific Partnership (TPP) country counterparts, have announced in Atlanta, Georgia, the conclusion of the ambitious TPP negotiations.

The completion of the negotiations, the Secretary stated, was made possible by the political will, pragmatism and flexibility displayed by all parties involved in the negotiation.

The Secretary of Economy signaled that Mexico and its 11 TPP counterparts reached this historic agreement with a high level of ambition, breadth, and standards never before reached. The TPP will be, without a doubt, a model for future trade negotiations, placing Mexico at the vanguard of these issues.

For Mexico, this trade agreement is of utmost relevance, as TPP opens new opportunities for Mexican businesses in 6 markets of the Asia-Pacific (Australia, Brunei, Malaysia, New Zealand, Singapore and Vietnam), the region that will register the most economic growth over the next 25 years.

Additionally, TPP will strengthen value-chain integration among Mexico, the United States, and Canada, contributing to the goal of making North America the most competitive region in the world. TPP will also consolidate Mexico’s preferential market access in Chile and Peru, priority trading partners of Mexico in Latin America, while deepening preferential access to the Japanese market.

Ildefonso Guajardo Villarreal emphasized that as a result of difficult negotiations, Mexico achieved adequate balance between market access and sensitivities in areas such as automotive-auto parts, textiles-apparel, and agricultural products, including rice, meat products, and the dairy industry.

Guajardo acknowledged that the conclusion of these negotiations was made possible due to the support and participation of all of the departments and federal agencies involved, as well as ongoing consultations with representatives from across Mexico’s productive sectors, through what has become known as the “side-room” consultation process.

The 11 countries forming TPP represent nearly three fourths (72%) of Mexico’s overall foreign trade and the origin for over half (55%) of total investment received by Mexico since 1999.

Translated by: The Mexico Institute 

Read the full press release in Spanish here. 

Retail Globalization and Household Welfare: Evidence from Mexico

Centre for Economic Performance – London School of Economics 

By David Atkin, Benjamin Faber, Marco Gonzalez-Navarro

May 2015

Photo by Flikr user elmada
      Via Flikr – elmada

In this report, authors discuss the arrival of global retail chains in developing countries, including Mexico, and the radical transformations they bring to household consumption. Drawing on new Mexican microdata to estimate the effects of foreign supermarket entry on household welfare, an estimate of a general expression for the gains from retail FDI can be reached. The study finds that foreign retail entry causes large and significant welfare gains for the average household –mainly driven by a reduction in the cost of living — however, the study finds little evidence of significant changes in average municipality-level incomes or employment. In conclusion, the study demonstrates that the gains from retail FDI are on average positive for all income groups but regressive. 


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Immigrant Employment and Earnings Growth in Canada and the U.S.: Evidence from Longitudinal Data

New Report from The National Bureau of Economic Research

By Neeraj Kaushal, Yao Lu, Nicole Denier, Julia Shu-Huah Wang, Stephen J. Trejo
September 2015

In this new report, the authors study the short-term trajectories of employment, hours worked, and real wages of immigrants in Canada and the U.S. using nationally representative longitudinal data sets covering 1996-2008. Models with person fixed effects show that on average immigrant men in Canada do not experience any relative growth in these three outcomes compared to men born in Canada. Immigrant men in the U.S., on the other hand, experience positive annual growth in all three domains relative to U.S. born men. This difference is largely on account of low-educated immigrant men, who experience faster or longer periods of relative growth in employment and wages in the U.S. than in Canada. The authors further compare longitudinal and cross-sectional trajectories and find that the latter over-estimate wage growth of earlier arrivals, presumably reflecting selective return migration.

Click here to access the study. 

ManattJones Global Strategies Applauds President Obama’s Nomination Of Roberta Jacobson As Ambassador To Mexico

6/9/15 Market Watch

Department of State ManattJones Global Strategies, LLC, an international consulting firm supporting U.S. companies and investors doing business in Mexico, applauds and fully endorses President Obama’s nomination of Assistant Secretary of State Roberta Jacobson as the nation’s next ambassador to Mexico.

“Roberta is an outstanding choice to be our next ambassador to Mexico,” saidMichael C. Camuñez, president and CEO, ManattJones Global Strategies, a former assistant secretary of commerce in the Obama administration who helped lead the administration’s commercial engagement with Mexico from 2010 through 2013. “Nobody understands the importance of the strategic relationship between the United States and Mexico better than Roberta, who has spent a significant part of her career working to strengthen bilateral economic, commercial and security ties.”

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New Release: Accountability in the States and Federal District Public Security Contribution Fund (FASP) (in Spanish)

survey opinion checklistJoint publication by Instituto Mexicano para la Competitividad (IMCO), A.C. & Causa en Común, A.C.

This joint study by the IMCO and Causa en Común, A.C. presents an analysis of the strengths and weaknesses of the accountability mechanisms governing the exercise of FASP resources. By making a systematic analysis of 10 Mexican states and 5 core topics, this study provides a good overview of the current state of FASP and its implementation.  Based on good practices and weaknesses identified, both institutions offer recommendations and alternatives to improve the performance of FASP.

To view the rest of the article read the PDF

Economy as Grand Guignol: The Postreform Era in Mexico

Mexican Flag XXLThe Mexico Institute is pleased to share with you William P. Glade’s chapter from the Oxford Handbook of Mexican Politics, edited by Advisory Board member Roderic Ai Camp.

Deeply rooted in decades of pervasive corruption, a legacy cost of immense significance for the national political and economic life of Mexico, trafficking in narcotics is now seemingly unstoppable as a major export industry, a position it has been approaching for the past two or three decades. 1 In the years since its inception, it has been nourished by a particularly lethal combination: the strength of U.S. demand for imported drugs, thanks to the limited effectiveness of programs to arrest addiction, and a counterfl ow of exports of arms from the United States to Mexico. Since at least the sweeping sociocultural changes of the 1960s in the United States, this is the fundamental set of supply and demand relationships that has propelled this Mexican growth industry forward. As the infamous Colombian narcotics processing and exporting sector was more or less eliminated as a major player in the past ten years or so, Mexican suppliers have found their position in the North American market enhanced and, concurrently, have taken firmer control of supply routes feeding into Mexico from Central America, the Caribbean, and countries to the south and of zones of Mexico producing the materials used in narcotics production.

Read more: Economy as Grand Guignol: The Postreform Era in Mexico

New Article: Rural development and migration in Mexico


By Andrew Wainer

Development in Practice Journal, Volume 23, Issue 2, 2013

This article analyses one of the causes of migration in rural Mexico through the lens of US foreign assistance policy. US aid to Mexico – the largest migrant-sending country to the USA by far – does not sufficiently take into account the conditions of rural under-development and joblessness that encourage unauthorised migration to the USA. Instead US foreign assistance has been dominated by aid to Mexico’s security agencies. This article analyses how the link between rural underdevelopment and migration-pressures has not been successfully addressed by either the Mexican or US governments. The article also analyses an innovative development project that explicitly seeks to support campesinos with the goal of reducing unauthorised migration pressures in a traditional migrant-sending rural region of Mexico.

Read more…