10 Oct 2019
Mexico Unveils New Industrial Policy
Mexico’s Ministry of Economy unveiled earlier this month a new national industrial policy at the first business meeting for the integration of productive chains held in Queretaro. According to a Ministry of Economy press release, this new industrial policy has the following core objectives:
- promoting greater economic competition, which will make it possible to resolve lags in the area of extreme poverty and encourage and strengthen the domestic market;
- taking advantage of commercial openness to strengthen productive chains that increase domestic content and expand the country's productive capacities;
- promoting regulatory improvement at the three levels of government to reduce regulatory costs and facilitate compliance;
- generating a friendly business environment that gives certainty and attracts greater flows of domestic and foreign investment;
- encouraging the growth of small- and medium-sized enterprises and domestic content for the production of goods and services demanded by the government (i.e., using government purchases as an additional lever of the country's industrial development focused on SMEs and domestic content);
- promoting the digitalisation of the manufacturing sector and boosting “industry 4.0”, leading to greater training of human capital and greater technification of the workforce in general;
- modernising the normalisation processes and boosting the quality infrastructure;
- promoting the health economy as an essential element to increase productivity and competitiveness in the medium and long term;
- increasing financing of development banks to industrial projects with greater co-ordination between the Ministry of Finance, the Ministry of Economy and other agencies of the federal government; and
- encouraging industrial projects in the most lagging regions of the country.
Minister of Economy Graciela Márquez Colín indicated that this new policy is the result of a consensus between the public sector, the private sector and academia. Undersecretary of Trade and Industry Ernesto Acevedo added that the policy aims to increase the domestic content of Mexican exports in order to promote a diversified, innovative and inclusive industry that strengthens the domestic market.