Mark Earley summarizes major Mexican reforms
Hello my name is Sergio Vazquez. I am director of finance for the Tecma Group. Today I will address some major Mexican reforms that have been approved by the country’s congress.
There were six major reforms made. The first one is the Mexican labor reform, which results in the provision of more flexibility for employers in Mexico based on the approval of new forms of hiring people. The second one is the financial reform which will result in increased opportunities for access to credit by both companies and individuals.
The third major Mexican reform consisted of changes to the Telecommunications Law. This will open new opportunities for current and new market participants. The fourth reform is education reform, which enhances public education systems and provides new alternatives for opportunities in private education. The fifth Mexican reform passed in 2013, and the most important according to many people, is the energy and national resources reform which opens new opportunities, primarily for foreign participation, in oil and gas, as well as other previously protected activities.
Finally, Mexican reform in the area of taxes, which is maybe the most controversial area of change, is the result of the application of some OECD recommendations primarily to increase the level of tax collection in Mexico.
The most important outcome of all of these reform is that Mexico is in a “best case scenario” position to receive foreign investment, and offers something something that has not existed before in the country: long term legal certainty. This will allow investors to do better planning and enable them to achieve their goals faster.
Photo credit: Hector Lazo