In the Headlines
May 6, 2020

Is López Obrador Eroding Mexico's Business Climate?

Latin America Advisor

Partner Salvador Fonseca was featured in a Latin America Advisor article discussing how Mexican President Andrés Manuel López Obrador's response to the COVID-19 pandemic has affected local businesses and foreign investment. Some of López Obrador's actions, most notably canceling plans for a new airport in Mexico City and pausing a $1 billion brewery project, have left investors concerned. Mr. Fonseca commented on the uncertainty that the situation has brought but added that the country's involvement in numerous trade and investment protection treaties have created a safety net for investors. In addition, he said he believes a focus on the private sector will be what ensures that the government continues to run and jobs will continued to be created.

"There are many things that the Mexican government could do to foster both national and foreign investment but, in my view, the most important aspects are
to guarantee the rule of law and to realize that the private sector is the actual motor of the economy and, therefore, promoting and protecting it is the best bet the government can make," he said.

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