Mexican reforms bring opportunities beyond oil

Subject

Opportunities in Mexican industrial sectors.

Significance

Interest in President Enrique Pena Nieto's energy reforms has mostly centred on the oil industry. However, liberalisation pushes stretch far beyond hydrocarbons. While the National Water Programme 2014-18 includes projects for private-public partnerships (PPPs) that will become accessible as new legislation is developed, interest is rapidly growing in the electricity sector, and the aerospace industry is booming.

Impacts

• The transparency that characterised Mexico's recent oil exploration tenders will reassure potential investors in other sectors.
• When the legislative period commences on September 1, the contentious Water Bill is likely to cause difficulties in Congress.
• The development of the aerospace industry could stall if domestic supply chains and suitably qualified human resources remain limited.