Just a couple of months ago, in the final stretch of his mandate, Andrés Manuel López Obrador launched one of his invectives against businessmen: “Those who feel like owners of Mexico”, “the leaders”, “those who are part of the corruption”. The still president thus responded to the criticism of the economic employers’ associations to the judicial reform, which includes, among other measures, the direct election of judges. The controversial and drastic change in the Mexican judicial landscape has been one of the main reasons for the punishment of the peso and a wave of concern among the markets. Aware that returning confidence and certainty to investors is surely her first great challenge, the new president, Claudia Sheinbaum, has lavished winks on the private sector in a change of narrative that distances herself from López Obrador. During his inauguration, he already spoke of taking care of “companies and innovation.” And this Tuesday, in his first speech in front of the senior staff of the directors of large Mexican and American corporations, he went even further. While before criticism of judicial reform was responded to with more attacks, now the strategy is an outstretched hand, pedagogy, and dialogue tables. The reform “does not represent any problem for investment in Mexico, on the contrary, it will strengthen what we call the Rule of Law. No American or Mexican businessman has to fear judicial reform.”
In a formal and conciliatory tone, the president personally attended this Tuesday more than 240 executives attending the CEO Dialogue, a private summit with business representatives from both sides of the border. A day before, the Government organized a dinner with some of the businessmen led by the Secretary of Foreign Affairs, Juan Ramón de la Fuente, and the Secretary of Economy, Marcelo Ebrard. Two of the strong men in the Government and with the greatest spirit and experience in delicate negotiations. The very formation of Sheinbaum’s Cabinet is another sign that seeks to generate trust. Rogelio Ramírez de la O remains at the helm of the Treasury, who achieved robust macroeconomic stability during the last two years. While in the area specifically of relations with the corporate world, he has named Altagracia Gómez, a well-connected businesswoman who already worked with Sheinbaum during the campaign.
Despite the frequently abrupt tone of the previous Mexican Government, the economic reality for companies has in any case been buoyant. The companies on the Mexican Stock Exchange (BMV) closed last year with the highest profit figures in more than a decade. Foreign direct investment also accumulated records thanks, above all, to the nearshoring, the movement of companies that, in order to sell to the US market, move their factories to countries, such as Mexico, that have free trade agreements with the US. In any case, the scenario for the future is not so bright. The macro balance has been somewhat blurred by the final rush of public spending to finish López Obrador’s star works, while forecasts agree on a slowdown in the economy. The overwhelming victory of Morena, which controls both chambers and can make changes to the Constitution, has also not been well received by the markets. The latest survey carried out by the Bank of Mexico among specialists also reveals a change of mood among investors.
The binational meeting this Tuesday has been very focused on the most delicate sectors. For example, the energy sector, where the previous Government slammed the door on private companies. He canceled the associations agreed upon in the previous Administration between the parastatal, Petróleos Mexicanos (Pemex), and the companies, in addition to asking sector regulators not to issue new licenses or permits and cancel the auctions of oil fields that were pending. Now Sheinbaum has chosen to establish working groups around the thorniest issues, such as judicial reform, electrical reform and the future renegotiation of the USMCA. In addition, it has announced the creation of a single business window to expedite private projects. Although the president did not go into more detail about her investment incentive plan, which will be made public in the coming days, she announced that investors will be guided on business opportunities, for example, in water or energy matters. “We are going to define the investment schemes in the energy sector clearly based on the secondary laws, what do we want? The strength of our public companies, which has always been our position, and at the same time the space for private investment in certain areas,” he said.
The Secretary of Economy, Marcelo Ebrard, reaffirmed this message by emphasizing that investments in Mexico are safe. “The dialogue was very productive, the most important part in the messages of President Claudia Sheinbaum, certainty, certainty, investments in Mexico are safe and we are going to seek that the trade of our region, which is 30 percent of the Domestic Product Brute of the world, keep growing. President Sheinbaum said, “we do not compete with each other, we complement each other,” she said after the high-level meetings held both in the National Palace and in the Association of Banks of Mexico.
The main capitals in Mexico responded to the president’s call at the National Palace. Grupo Carso, Walmart, Amazon, PepsiCo, Bayer, AT&T, Cemex, Coopel, Kansas City, among other companies, were part of the select group of businessmen and women who heard first-hand about the investment plan of the incoming Government.
In this new Administration, another of the distinctive signs has been the presence of women entrepreneurs. From the presence at the press conference of Sarah Bairstow, general director of Mexico Pacific, and Suzanne P. Clark, president of the Chamber of Commerce in the United States. But also the assistance of the main directors at the work tables. Among these names were the general director of Softek in Mexico, Blanca Treviño; Mónica Aspe from AT&T México, Tania Ortiz, from Sempra Infrastructure. Suzanne P. Clark, president of the Chamber of Commerce in the United States, recognized the effort of this Government to establish a bridge of dialogue: “We are very happy that President Sheinbaum, as soon as she began her administration, has committed to this dialogue with the private sector, so that we can reduce uncertainty about the investment climate in Mexico and grow businesses across our borders,” he concluded.