The North American Development Bank (NADBank) ruled out that Mexico’s trade conflicts with the United States have an impact on future Foreign Direct Investment (FDI).
Calixto Mateos Hanel, director general of NADBank, told El Sol de México that this type of trade dispute, for example in the energy sector or over transgenic corn, are processes that usually appear in any foreign trade agreement.
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The foregoing, as a result of the different ways of acting of each country in the face of special problems or sectors where one country is at a disadvantage over the other.
“Sometimes (the countries) do not fully agree and when there is this disagreement, then it is when a dispute is generated that has to be resolved and there is a mechanism for it,” he specified.
In recent months, the dispute between Mexico and the United States over a ban on the importation of transgenic corn has stood out, since the government of Andrés Manuel López Obrador argues that this input harms the native varieties of corn and can cause damage to health, while The United States maintains that Mexico’s arguments lack scientific support.
Similarly, since the beginning of last year a commercial dispute began between the Mexican and US governments regarding the energy sector. According to what the neighboring country said, Mexico’s energy policy favors its local companies and leaves other private foreign participants at a disadvantage.
From the perspective of the CEO of NADBank, even these conflicts often provide confidence to foreign investors or companies, as they are taken as a sign that there is a legal mechanism or framework that can support business in any country.
“Every treaty has mechanisms and every treaty implies that suddenly there may be some differences and controversies, what I think is very important is that there are mechanisms to occur,” added Calixto Mateos Hanel.
Concern about sustainable investments
The CEO of NADBank highlighted that there are more and more investors and entities interested in doing long-term sustainable business, a trend that is more visible in North America.
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“We have seen a very important participation, an increasingly intense interest in this and a commitment also from the authorities. A few months ago we granted a loan to Baja California that is intended to serve mainly water projects and it is a very innovative mechanism, ”he stated.
Data from the Ministry of Economy (SE) indicate that until the end of the first half of the year, the United States continues as Mexico’s main trading partner. In total, during this period the country received 29 billion dollars in Foreign Direct Investment (FDI).
2023-08-28 11:00:00
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