RIP ProMexico - The Implications of the Closing of ProMexico
RIP ProMexico. ProMexico’s closing sadly signals an end to Mexico being the vanguard for international trade in both North and Latin America and in the Mexican federal government looking at exports and international trade as the engines for Mexican economic growth.
NAFTA II / USMCA will hopefully progress through the US Congress, though given the US federal government’s behavior of late nothing should be taken for granted. ProMexico was a great promoter of NAFTA and a great resource for businesses looking to export from Mexico as well as invest directly in Mexico; the ProMexico offices here in Dallas and in Mexico City will certainly be missed.
As so well said by Barnes & Thornburg “ProMexico was considered a trusted ally to U.S. and foreign companies looking to invest in Mexico; it offered assistance by connecting them to a network of local representatives and overseeing their investment projects”. This gap will need to be filled by professional advisors in the consulting professions; particularly outside of Mexico where the Mexican states’ representatives are not as active.
Mexico’s new president, AMLO, has a locus of control focused on the internal Mexican market and wants to return Mexico to the age when it was an economy based on import substitution which only ended in the very late ‘80s; NAFTA did not go into effect until 1994. Though he may claim to not be “anti-foreign investment” his actions clearly indicate he is not a strong supporter of it.
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