Research and analysis

Mexico: visit by the Prime Minister’s trade envoy

Published 18 June 2014

0.1 Detail

The Prime Minister’s Trade Envoy, Baroness Bonham-Carter, visited Mexico from 20-28 May. It was her fourth visit since being appointed in November 2012.

Energy

The visit focused heavily on energy – offshore oil and gas exploration and production is one of UKTI Mexico’s two High Value Opportunities (HVOs).

During a visit to Tabasco (centre for much of Mexico’s onshore and offshore production), the Baroness met the State Ministers for Economic Development, and Energy. She heard how the reforms will increase opportunities for international companies. The Baroness outlined British expertise across the sector, given our long history in the North Sea. British company Petrofac talked about their innovative approach to providing services for oil production, while another British company Penspen explained the work they are doing with PEMEX (Mexico’s state oil and gas company) on pipeline management. . At a meeting in Mexico City with key contacts from the British Chamber of Commerce, the Baroness heard that it would take a while for concrete projects to come out of the energy reforms, but the Government was moving in the right direction. This would become an even more competitive market, and the UK needed to get in early.

The opening-up of the Mexican oil and gas sector will increase the need for skilled professionals – an area where the UK, with its rich collection of vocational training institutions, has a lot to offer. The Tabasco Minister for Economic Development welcomed our efforts to reach out to the network of Petroleum Engineering Universities in south-east Mexico, and hoped they could build links with British training providers. The Baroness also visited the Technological University of Tabasco, which recently participated in GetEnergy in the UK (a congress of Energy training providers).

On Renewable Energy / Low Carbon Technologies, the Baroness spoke at an event to launch the new Carbon Trust office in Mexico – an exciting development, given the wealth of opportunities here that have been partly driven by Mexican Climate Change legislation (based on the UK’s Climate Change Act). The Baroness also met three local institutions that are delivering Prosperity Fund projects that assess the potential for windpower in Mexico; analyse the potential for Renewable Energy in the State of Veracruz; develop climate action plans for Mexican municipalities; and provide financing for Energy Efficiency improvements amongst Mexican SMEs. All these projects should help to improve the business environment for British companies that operate in these sectors.

Infrastructure

The other UKTI Mexico HVO is in ports infrastructure. In Tabasco, the Baroness heard how the local Government plans to develop the port of Frontera which will be a key logistics centre for the oil and gas industry (in addition to the existing port of Dos Bocas). Frontera will be a “private port” not under the administration of the federal government: the project plan should be ready in the next month or so.. The Baroness heard how Tabasco is already a logistics hub for south-east Mexico, with plans to expand that capacity and increase efficiency in existing distribution centres. The State Government said it would welcome involvement from British companies with experience in this area.

Design and ICT

The Baroness spoke at the event to announce the UK as Country of Honour at Mexico Design Week 2014. This exciting event, which features a wide range of international participants, will be one of the pillars of our GREAT week this October: Sir John Sorrell is due to head our delegation, with Tom Dixon, Matthew Hilton and Laurence Llewelyn-Bowen also provisionally due to take part. Laurence Llewelyn-Bowen was in Mexico at the same time as the Baroness, and she attended an event to open his new “working lounge” at the British Business Centre. The Centre, financially supported by UKTI, will provide a range of services to SMEs that wish to establish in Mexico. The Baroness also presented prizes to the winners of our LondonTech 2014 competition – six Mexican ICT companies will visit the UK this month to take part in Technology Week in London. This year’s competition attracted over 150 entries: we hope it will be as successful as last year, when one of the winners subsequently invested in the UK.

In other calls, the Baroness met the head of Astra Zeneca Mexico to discuss local pharmaceutical issues; she visited the UK stand at the “Fair of Nations” in the Zocalo central square, to meet UK companies exhibiting there; and took part in the closing panel discussion at our Wilton Park conference on soft power. She also discussed plans for the 2015 celebrations to mark the Year of the UK in Mexico, and the Year of Mexico in the UK, with the British Council and local businesspeople.

0.2 Disclaimer

The purpose of the FCO Country Update(s) for Business (”the Report”) prepared by UK Trade & Investment (UKTI) is to provide information and related comment to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. The Report’s contents were believed (at the time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Report’s contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the Report.