All posts by Tom

Recent and upcoming investment in Mexico

Information collected from media reports over the last month:

  • Renewable energy: Mexico’s Federal Electricity Commission (CFE) announced a joint investment with the Inter-American Development Bank (IDB) to install renewable energy technologies in Mexico City’s Central de Abasto food distribution center. Projects include the installation of PV solar panels, a biogas-driven electricity generation plant to recycle organic waste and a biodiesel processing facility to convert used cooking oil into automotive diesel. (La Jornada, May 27, 2019)
  • Wind power: Italian renewable energy developer Enel Green Power inaugurated a wind energy park in the northeastern state of Tamaulipas, the company reported. The US$150 million, 103 Mw site is planned to supply clean power to the national Federal Electricity Commission (CFE) for 15 years. (El Financiero, May 21, 2019)
  • Industrial parks: Mexican industrial real estate developer Vesta inaugurated a new industrial park for the automotive industry in the northeastern state of San Luís Potosí. The company plans to add an additional 11 industrial buildings to the site over the next five years at an estimated cost of US$90 million. (Reforma, May 16, 2019)
  • Airlines: Mexican passenger air carrier Aeromexico announced an investment program of US$3 billion over the next six years. The airline plans to acquire 90 new aircraft as well as equipment  and motors, among other upgrades. (Reforma, May 15, 2019)
  • Food processing: U.S.-based food and beverage multinational Pepsico announced US$4 billion in investment plans for Mexico operations through 2020. Projects include a new savory snacks plant in the central state of Guanajuato as well as upgrades in areas such as infrastructure, sustainability programs and community development. (Reforma, May 7, 2019) Continue reading Recent and upcoming investment in Mexico

Yeeee Haw, more tariffs!

As the ink dried on the edict removing U.S. import tariffs from Mexican and Canadian steel and aluminum, U.S. President Donald Trump stunned NAFTA traders May 30 with the announcement of a major new trade war against Mexico.  The program calls for implementation as of June 10 of a 5% import tariff on “all goods imported from Mexico”, with the stipulation that the duty rate will rise by five percentage points per month up to 25%.  The tariffs are intended to force Mexico to stop the flow of migrants to the U.S. border, according to the president’s tweet.  Mr. Trump has not yet released his plan to impose tariffs on FIFA to boost the USMNT’s ranking or punitive duties on the Kingdom of the North for intemperate behavior, but we presume these are on his ink blotter as we type.  Continue reading Yeeee Haw, more tariffs!

Mexico tied to bumper of U.S. trade wars

Trump’s trade wars

After 22 years of lotus-eating reverie under NAFTA, North American supporters of free trade are now being terrorized by U.S. President Donald Trump and his campaign of tariff-driven protectionist mayhem.  Media coverage of Trump’s trade war is focused on China, but Mexico is taking some lumps in this affair as well.  The latest moves and counter-moves are taking place against a backdrop of the struggle to push the renegotiated NAFTA free trade agreement forward into law as the U.S. Mexico Canada Agreement, or USMCA.  Here are some comments on the various moving parts at this juncture. Continue reading Mexico tied to bumper of U.S. trade wars