Mexico’s Outlook in 5 Charts

11/20/2017 International Monetary Fund

The Mexican economy keeps growing, mainly thanks to its strong economic policies, even as the fate of the country’s trade deal with North America remains unclear. However, Mexico would still benefit from carrying out reforms for stronger and more inclusive growth. The main areas to tackle are inequality, corruption, obstacles holding back firms’ productivity, and tax collection to allow more room for public investment.

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Uber adds six cities to Mexico coverage, bringing total to 45

11/6/2017 Reuters

U.S. ride-hailing service Uber Technologies Inc said on Monday it was increasing its presence in Mexico to include six more cities in the country’s northwest, bringing its coverage to 45 cities overall.

From Monday, Uber was adding La Paz, capital of the state of Baja California Sur, as well as Guasave in Sinaloa state and the cities of Nogales, Guaymas, San Luis Colorado and Navojoa in the state of Sonora, the company said in a statement.

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Mexico employers federation pushes for higher minimum wage

10/24/2017 News Observer

The push to raise Mexico’s low wages has gotten some unusual champions.

The Mexican Employers’ Federation said Monday that the minimum wage should be raised 19 percent, to the equivalent of about $5 a day.

And telecom magnate Carlos Slim, Mexico’s richest man, told a business conference that “what has to be done is to substantially increase people’s incomes.” He called for a larger, better-paid middle class to stimulate Mexico’s internal market.

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Mexico factory activity rises to 16-month high in September

10/2/2017 Reuters

Activity in Mexico’s manufacturing sector increased in September to a 16-month high on the back of stronger output and new orders, a survey showed on Monday.

The Markit Mexico Manufacturing Purchasing Managers’ Index MXPMIM=ECI rose to 52.8 in September from 52.2 in August, when adjusted for seasonal swings.

A reading above 50 signals expansion in the sector, while a reading below that points to contraction.

“The latest set of PMI data show that economic conditions in Mexico remained on an upward trajectory, with factory output expanding in tandem with strong inflows of new work,” said Pollyanna De Lima, principal economist at IHS Markit and author of the report.

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Total Joins Chevron in Gulf of Mexico Development

9/24/2017 Financial Tribune

French Total has expanded its presence in the Gulf of Mexico by closing a farm-in agreement with Chevron for the development of seven prospects covering 16 blocks in the deepwater section of the gulf.  The French company said the prospects it will develop are located in the Wilcox play in the central Gulf of Mexico, next to the Anchor discovery, and in the Norphlet area, close to the Appomattox discovery, Oil Price reported.

Total will take stakes of between 25-40% in the prospects, to add to its already existing interests in producing fields in the GOM: a 17-% stake in the Tahiti field, whose operator is again Chevron, and a 33.33% interest in the Chinook field, operated by Brazil’s Petrobras. The French major also holds 40% in the North Platte field, operated by Cobalt Energy.French Total has expanded its presence in the Gulf of Mexico by closing a farm-in agreement.

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Protecting Mexico’s Energy Reforms

8/14/2017 RealClear World

By Duncan Wood

When President Salinas Gortari signed the North Atlantic Free Trade Agreement for Mexico in 1992, he provided certainty and stability for investors hoping to benefit from Mexico’s emerging manufacturing base. The trade deal locked in the benefits of domestic economic reforms and liberalization introduced in the late 1980s and early 1990s. The steady flow of foreign investment that followed turned Mexico into a manufacturing powerhouse.

When negotiators from Mexico, Canada, and the United States start talks on Wednesday to renegotiate aspects of the 23-year-old agreement, they too hope to lock in recently won gains in Mexico that are of enormous interest to all parties. One priority must be to defend hard-won reforms in Mexico’s energy sector — reforms meant to change a sector that was closed and monopolistic for 75 years. Since U.S. President Donald Trump’s inauguration in January, a broad-based movement has emerged that aims to defend two decades of free trade in the region and to insist on the urgency of “doing no harm” during renegotiation. NAFTA’s defenders have managed to influence a change in language: Where commentators once spoke of renegotiating a pact Trump characterized as the worst trade deal signed by the United States, the negotiations are now widely framed as an opportunity to modernize a venerable trade deal so that it more accurately reflects the needs and priorities of the 21st century economy.

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NEW SERIES | Charting a New Course: Policy Options for the Next Stage in U.S.-Mexico Relations

The Mexico Institute is pleased to announce the launch of its series, Charting a New Course: Policy Options for the Next Stage in U.S.-Mexico Relations, which reevaluates the U.S.-Mexico relationship and explores how both nations can improve upon the bilateral agenda given changes in the regional and global context. The series includes original content, including reports, videos, and more.

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