Monday, June 9, 2014

Mexican President Highlights Actions to Accelerate Growth

Presidency of the Republic

President Enrique Peña Nieto said today (June 4) that in order for Mexico to grow, for there to be more jobs and for Mexicans to earn more for their work, in the first 18 months of his administration the government has promoted the reforms the country needed.

He said that, “Because of the breadth, depth and complexity of these reforms, as well as the speed with which they have been achieved, we have yet to fully gauge the positive impact they will have on our nation.”

When he participated in the 32nd Regular Meeting of the Business Coordinating Council (CCE), President Peña Nieto mentioned that as part of his commitment to “Exercising a democratic government, open to dialogue, with the best proposals from the private sector,” today there are numerous examples of participation and exchange with over 25 organizations in the sector, such as the National Committee for Productivity and the Business Advisory Council for Economic Growth in Mexico, which held its first regular session of 2014 yesterday.

The president said that following that dialogue with the private sector, “And adopting some of its main approaches, the government has decided to take the following actions to accelerate growth”:

FIRST: The Secretariat of Finance and Public Credit (SHyCP) has given instructions to assess and promptly present a set of measures to reduce the adverse impact of restrictions on the use of dollars in cash at the border. These measures should offset the negative effects that have harmed companies that conduct their business legitimately, since 2010.

SECOND: Mechanisms to facilitate trade and eliminate export barriers will continue to be strengthened. An example of this is the Strategy for Export Promotion being developed by the Health Secretariat and the Federal Commission for Protection from Health Risks (COFEPRIS), together with the CCE. In the coming weeks, the Health Sector’s One-Stop for Export Promotion will begin operating, together with a scheme simplifying the procedures required to obtain an Export Certificate from COFEPRIS by as much as 80 percent.

THIRD: In order to finance Micro, Small and Medium Enterprises (MSMEs), this year over 3.3 billion pesos have been assigned to the National System of Warranties. This will provide approximately 90 billion pesos in credit for 100 thousand MSMEs.

The president said to go beyond this, he has instructed the SHyCP and the SE so that, in the various levels of dialogue with the private sector, additional mechanisms will be designed to support entrepreneurs and MSMEs.

FOURTH: He has also instructed the Prosperous Mexico and Inclusive Mexico offices to modernize the operating rules of social programs to make them simpler, and to have a strong productivity development component.

FIFTH: Likewise, in order to accelerate infrastructure development he has given instructions to the agencies implementing the works, such as the Secretariat of Communications and Transportation, Petróleos Mexicanos, the Federal Electricity Commission, and the National Water Commission, to reduce the time between the awarding of a contract and the beginning of construction. This will undoubtedly make our economy more dynamic.

AND SIXTH: All necessary public policy measures will be taken to ensure that hydrocarbons, gas and electricity have significant local content. Consistent with the Energy Reform adopted, “We will make sure that the Mexican industry widely benefits from the new opportunities for investment and growth offered by the national energy sector.”

During the event, at which Gerardo Gutiérrez Candiani was sworn in as President of the CCE for the period from 2014-2015, the president pointed out that together with the transformation of the institutional framework there has also been a transformation of the physical infrastructure of Mexico. “The government has launched the National Infrastructure Program 2014-2018. It is a record investment of 7.7 billion pesos to build great works and projects across the country,” he added.

He explained, in football terms, that, “Both the sweeping reforms and the physical infrastructure we are developing are a modern, level playing field, with clear rules. He urged them to “Wear Mexico’s colors, play as a team, and win as a nation.”

Continuing with this sports analogy, he explained that, “You, Mexico’s entrepreneurs, are the players that the country needs to compete, grow and succeed. The government is quite clear: what creates jobs, what makes investments and creates growth, is the private sector.

He added: “Our country dared to change, is changing, and in the process Mexican businessmen and entrepreneurs will play a key role. Mexico expects a lot from you.”

The President declared that, “The transformation of the country will not happen overnight, nor will it be achieved by decree; we must achieve the transformation every day. That’s what we must do, as Mexicans.”

He recalled that two years ago, as a presidential candidate, he promised domestic entrepreneurs, “To promote a national transformation and adopt much of what was then called the Agenda for Mexico.” I want to assure you, he continued, that, “the government is driving this transformation and continues to work for that agenda, as it overlaps with the National Development Plan.”

——————————

Presidency of the Republic, Mexico, DF, Jun. 4, 2014; translation by Presidency of the Republic