The Canadian government is concerned about the investment climate in the mining sector and the energy industry in Mexico, said Mary Ng, Canadian Minister for Small Business, Export Promotion and International Trade.
Mexico is the world’s fourth largest recipient of foreign direct investment (FDI) for mining and the second destination of such FDI in Latin America.
In general, the mining industry in Mexico is dominated by Canadian companies, although there is also substantial Mexican capital involved in some of the larger mines that produce silver, gold, and other important metals and non-metallic minerals.
Concerns about mining and the energy industry were raised by Ng to Tatiana Clouthier, Mexico’s Secretary of Economy, before the meeting of the Free Trade Commission of the Agreement between Mexico, the United States and Canada (USMCA).
Ng reaffirmed Canada’s commitment to work closely with Mexico to address trade and investment issues, including rules of origin for the auto industry, and to support Mexico’s historic efforts on labor reform.
“She also reiterated Canada’s concerns about the current investment climate in Mexico, especially in its mining and energy sectors. Minister Ng emphasized the need for a timely resolution of these problems in order to provide long-term economic security for workers and industry,” added the Canadian Ministry of Foreign Affairs in a statement released Monday.
According to Camimex, mining is an essential activity to promote the social, cultural and economic development of Mexico, occupying the first link of most industrial and economic activities.
For Mexico, the mining industry is an outstanding generator of income, contributing 8.3% to the industrial GDP and 2.5% to the national GDP. It is also a large generator of jobs, with more than 379,000 direct jobs and almost 2 million indirect jobs.
Mexico captured 2.5 billion dollars of investment in the mining sector in 2020, its lowest level in the last 13 years, estimated this Tuesday Fernando Alanís, president of Camimex.
Mining is one of the sectors with the highest investment amounts; In 2019, this indicator added 4,657 million dollars, 4.9% less compared to 2018, due to the unfavorable conditions of demand and prices at a global level.
Ng and Clouthier highlighted the growing economic relationship between Canada and Mexico, and their shared interest in inclusive trade that benefits small businesses, women, indigenous peoples, and underrepresented groups in both countries.