A bullish view and recent takes on Mexico

April 8, 2011

Over the past couple of weeks I've spoken to a number of individuals and groups both in the U.S. and Mexico.  And, while it's clear to me that the recent diplomatic "back & forths" have proven to be the stuff of conversation and security in Mexico (perhaps more so given this week's tragedy in Tamaulipas) remains an issue, the real headline is that CEOs, investors, and business leaders are feeling quite bullish about Mexico. And, I think there's plenty of reason for them to feel that way.

A recent Reuters piece, "Mexico: Another BRIC in the wall" notes, among other things, that Mexico outperformed Russia in 2010 and is on track to become the world's 8^th largest economy by 2050.

Increasingly, Mexico is seen as a near-sourcing platform and an attractive alternative to China for U.S. and international business looking to expand or relocate their operations.

And the truth of the matter is when you benchmark Mexico against other emerging markets and its Latin American counterparts, Mexico compares quite favorably. If there's one key message I've tried to make clear to all that I've spoken to these past few weeks, it's that this will be Mexico's decade.

But don't take my word for it, take a look at two recent reports from JP Morgan : "Mexico Color: Mexico in a Sweet Spot for Growth" and their broader, deep dive into Latin American markets on the heels of the Inter-American Development Bank annual meeting, "Views from the IADB Meetings." Both offer very encouraging assessments of Mexico's near and intermediate term prospects.

With that said, what frequently frustrates me is that the optimism I hear when I travel outside of Mexico is not always shared in equal measure by my neighbors and friends here in Mexico.

And perhaps that shouldn't surprise me. When you live your own headlines each day, it's often difficult to appreciate how much more dire - in economic, political or security terms - the situation is elsewhere.   All countries face challenges, and at times we simply don't have the perspective that allows those of us right here in Mexico to step back and objectively assess our situation vis-à-vis our global competitors.

Mexico is clearly on solid economic footing.  And, should the country embrace even modest competitive reform, then Brazil, Colombia or Chile will soon be asking how they can keep pace with Mexico.  It's time for us to tell that story, loud and unequivocally.

Here at Vianovo and White & Case. I'm proud to be part of two groups that feel strongly about Mexico's future and believe both in its people, and the opportunities this country represents. And, I hope you do, too.

So, if you find yourself taking anther look at Mexico, I hope you'll give me a call.

Sincerely,

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