Global Investment Guide: How To Invest In Mexico

5/18/16 Forbes

Mexico BricksLooking at the country through an economist’s lens, Mexico’s economy can be described as mostly predictable and rarely volatile. However, the same cannot be said of Mexico’s stock and bond markets and currency. Given strong links to the United States’ economy, Mexico’s macroeconomic variables tend to move broadly in conjunction with the ups and downs of its northern neighbor. When the U.S. is expanding, so is Mexico; if the U.S. is in a recession, so is Mexico. However, Mexico’s asset prices tend to act and react to their compatriot emerging market asset classes – which are much more volatile. That said, Mexico’s principal asset classes tend to be “low beta” versions relative to most emerging markets (EM), so that when EM equities or bonds do very well, Mexico lags, but when EM sells off, Mexico acts like a relative safe haven. The Mexican peso is another matter.

Mexico has several things going for it. As mentioned above, the country has forged strong links with the U.S., especially after the formation of NAFTA. As the country has an abundance of relatively cheap labor, it was an ideal, close-proximity destination for manufacturing plants from the U.S. and Canada. Through time, the country has benefited from technology transfer and has been able to increase the skills of its workforce. Second, for most of the last few decades, well-trained and well-respected policymakers have been at the helm of Mexico’s central bank and finance ministry. Under their leadership, Mexico has been able to weather several global crises and also transitions to different presidential leadership, by implementing conservative fiscal policy and prudent monetary policy.

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Op-Ed | Getting North America Right

5/9/2016 Mexico Institute blog, Forbes.com

By Earl Anthony Wayne, Public Policy Fellow, Wilson Center

nafta (2)When the leaders of Canada, Mexico and the United States meet on June 29 for a North American Leaders Summit (NALS), they will have two big tasks: 1) to explain clearly why cooperation between the three countries is of great value; and 2) to give clear directions to their officials to do the hard technical work so that cooperation produces solid results for economic growth and competitiveness, for mutual security, for the shared continental environment, and for international cooperation where we can do more together than individually.

Since Mexico hosted the last so-called “Three Amigos” Summit in 2014, the tone in the U.S. domestic political debate has turned very critical of cooperation across the continent, whereas the actual collaboration and mutual understanding between the governments has improved.  The potential to help make all three countries more competitive in the world and to become a model for regional cooperation has increased, even as the electoral campaign attacks on the relationship with the United States’ two top export markets sharpened starkly.

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NAFTA May Have Saved Many Autoworkers’ Jobs

3/29/2016 The New York Times

When Donald Trump threatened to “break” the North American Free Trade Agreement, auto industry workers offered up some of the loudest cheers.

Mr. Trump easily won the Republican primary in Michigan this month. The state, home base for the American auto industry, also delivered an upset victory to Bernie Sanders, the Democratic anti-Nafta standard-bearer.

But the autoworkers’ animosity is aiming at the wrong target. There are still more than 800,000 jobs in the American auto sector. And there is a good case to be made that without Nafta, there might not be much left of Detroit at all.

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Nafta May Have Saved Many Autoworkers’ Jobs

3/29/16 New York Times

TLC_mapWhen Donald Trump threatened to “break” the North American Free Trade Agreement, auto industry workers offered up some of the loudest cheers.

Mr. Trump easily won the Republican primary in Michigan this month. The state, home base for the American auto industry, also delivered an upset victory to Bernie Sanders, the Democratic anti-Nafta standard-bearer.

But the autoworkers’ animosity is aiming at the wrong target. There are still more than 800,000 jobs in the American auto sector. And there is a good case to be made that without Nafta, there might not be much left of Detroit at all.

“Without the ability to move lower wage jobs to Mexico we would have lost the whole industry,” said Gordon Hanson of the University of California, San Diego, who has been studying the impact of Nafta on industries and workers since its inception more than two decades ago.

Even in the narrowest sense — to protect jobs in car assembly plants — a wall of tariffs against America’s southern neighbor would probably do more harm than good.

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Trump Victory Is Factor in Mexico’s Risk Models, Central Banker Says Eric Martin EMPosts

3/14/2016 Bloomberg 

Agustin_Carstens,_IMF_116DC2lgMexico central bank Governor Agustin Carstens said the possibility of a Donald Trump presidency is implicitly reflected in the risk models used by policy makers, after stressing the importance to Mexico’s economy of the North American Free Trade Agreement.

“Explicitly, no,” Carstens told El Financiero-Bloomberg TV’s Carlos Mota when asked if the risk of a Trump presidency is reflected in the central bank’s models, “but implicitly all of us have it in our heads.”

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Communidades Fronterizas Competitivas

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El Mexico Institute te invita a participar en la presentación del informe titulado “COMUNIDADES FRONTERIZAS COMPETITIVAS, MAPEO Y DESARROLLO DE INDUSTRIAS TRANSFRONTERIZAS MÉXICO-ESTADOS UNIDOS”. El evento se llevará a cabo en la Ciudad México el día 3 de marzo del 2016 de 12:00 -13:30 hrs. Este evento contará con la participación de representantes de ProMéxico, Mexico Institute, y North American Research Partnership.

Leer más

FAVOR DE CONFIRMAR SU ASISTENCIA CON

monica.meza@promexico.gob.mx Tel. 5447 7000 ext. 1231

Detalles del Evento :

3 de marzo del 2016 

12:00pm-13:30pm

Auditorio de ProMéxico
Oficinas Centrales

Camino a Santa Teresa # 1679,
Col. Jardines del Pedregal
Del. Álvaro Obregón
México, D.F.

 

La página del evento.

 

1,400 Workers ‘Devastated’ by Carrier’s Plan to Move Indianapolis Facility to Mexico

2/16/16 ABC News 

2000px-Logo_of_the_Carrier_Corporation.svgA union representing workers at an Indianapolis facility that recently announced it would be moving to Mexico — taking 1,400 U.S. jobs along with it — met with company representatives today but said there was “no hope” of stopping the move.

Carrier, which makes heating, ventilating, air conditioning and refrigeration equipment, announced on Feb. 10 that it planned to relocate its Indianapolis, Indiana, manufacturing facility to Monterrey, Mexico, “over the course of an estimated three-year period.”

“It’s pretty damn bad when you’ve got people that figured they’d be able to retire there with some dignity and due to no fault of their own, now they’re finding out they’re not going to have a job,” Chuck Jones, the president of United Steelworkers Local 1999, told RTV6 today.

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