Canada.com recently featured the coming boom associated with Mexico’s latest round of reforms,which promise to open up the nation’s impressive energy sector to foreign investment. The historic legislation will end the state’s 75-year monopoly over Mexico’s energy resources in an effort to increase production,at the same time providing new investment opportunities for Canada.
“[The reforms] are also central to an economic strategy that Pena and his government hope will boost growth within the Latin American country to around six percent per year,” writes Canada.com. “It appears Peña Nieto’s ruling coalition has the votes to succeed.”
Once the reforms are in place,Canadian companies and investors throughout all of North America will finally be able to tap into this market,increasing competitiveness throughout the continent and elevating Mexico’s status to that of an energy superpower.
“This shifts the energy balance of power,worldwide,” Mexican Ambassador Francisco Suarez told Canada.com. “A stronger North America,a dynamic North America,and a North American powerhouse in energy will change the world to the good.”
A number of Canadian companies are watching the reforms progress with great interest,including Calgary-based TransCanada,which recently revealed that it hopes to participate in power plant competitions and other areas of Mexico’s robust energy sector once the reforms are in place.
“TransCanada will be interested in new natural pipeline or electricity opportunities that may arise from the energy sector reforms,” stated Michael Barns,a spokesman for the company. “We already have a very successful natural gas pipeline business in Mexico.”
In an effort to encourage faster integration of North America’s economies in relation to border clearance,energy security and regulations,CEOs from a variety of major U.S.,Canadian and Mexican corporations are petitioning their respective governments,asking them to work together and create a more effective – and competitive – trading bloc. The groups include the US Business Roundtable,the Canadian Council of Chief Executives and the Consejo Mexicano de Hombres de Negocios.
“One of their key recommendations is to make permanent a programme designed to offer early customs clearance and speed up supply chains in North America,” writes the Financial Times. “They are also asking for an ‘automated and paperless experience’ at the border.”