About Mexico Day 2018
21 March 2018
Grange st Paul's Hotel - London
10 Godliman Street - EC4V 5AJ
This is the third edition of the flagship event "Mexico Day", which was first held in 2015 during the State Visit of President Enrique Peña Nieto to the United Kingdom. "Mexico Day", is an unparalleled opportunity for investors and other stakeholders from the private and public sectors to interact with high-level Mexican officials involved in the development and implementation of critical policy components of the Mexican economy.
Mexico is the 15th largest economy in the world, with a GDP of USD 1.2 trillion. Between 2014 and 2017, its GDP grew on average 2.8% every year, being among the steadiest in Latin America’s and the world. Mexico is a pioneer in global free trade, and has one of the largest FTA networks, which provides privileged access to 46 countries, including key partners in the Americas, Europe and Asia. The country´s total trade balance in 2017 was USD $800bn and attracted FDI of 30 billion USD (21.5 billion pounds) on average having a positive impact on the business environment and fostering economic growth.
1 Present Mexico as a strategic business partner given its solid macroeconomic fundamentals, as well as an open and friendly business environment with a strong internal market.
2 Identify specific business opportunities generated through the implementation of far-reaching structural reforms in strategic sectors, including energy, telecoms, finance and education.
3 Strengthen the UK-Mexico trade and investment relationship given the current international context, in which diversification and market access are crucial drivers.
The Mexican Ambassador in the UK will welcome the audience followed by introductory remarks by a Minister from the UK Department of International Trade (DIT). A senior official from the Mexican Federal Economic Competition Commission will set the stage with initial ideas regarding the state of play of the economy and structural reforms. The Chairman of the Mexican Chamber of Commerce will give the Closing remarks.
Successive panels and keynotes by senior government officials and business leaders will showcase opportunities in key sectors, with unique insights into their respective areas of expertise. It will be an ideal opportunity to learn about the latest economic developments and perspectives of the most dynamic components of Mexico´s economy including oil and gas, insurance, renewables, infrastructure and fintech. The President of the Mexican Chamber of Commerce in the UK will wrap up the working day.
The ambitious energy sector reform and its rapid implementation has given rise to increased private and foreign investment in the industry. So far, the bidding processes have resulted in the awarding of over 80 offshore and onshore contracts areas to international and domestic firms. According to the Ministry of Energy (SENER), the energy reforms have generated investment commitments of over US 175 billion for the development of blocks as well as other activities related to natural gas infrastructure, electricity, and seismic exploration. With the projects to be carried out this year (bidding processes 3.1 and 3.2), total committed investment is expected to exceed US 200 billion.
British companies have actively participated in this process and have brought investment, best practices and technologies that have helped strengthening the recently created energy market in Mexico. The new commercial and investment links between Mexico and the UK have opened a window for closer collaboration that will undoubtedly bring the Mexican and British economies closer together.
In this context, “Mexico Day” will include an oil and gas panel to discuss the most recent developments in the bidding processes and to talk about business opportunities within the supply chain in upstream and downstream activities. Discussions will also touch on future E&P investment opportunities and on the prospects of the sector considering it is the most prolific offshore region in America and one of world’s largest untapped oil and gas resources, according to the National Hydrocarbons Commission.
In the electricity sector, three successful bidding rounds have taken place. A second panel will focus on specific areas of opportunity including power generation, transmission and distribution and the wholesale electricity market, as well as on green finance mechanisms such as the clean energy certificates that Mexico is successfully implementing.
In spite of considerable progress, important challenges remain as Mexico works toward fulfilling its energy potential. Mexico Day is a unique opportunity to better understand the complexity of ongoing changes and the profound transformations underway in the energy sector in Mexico.
In Mexico, Fintech is full of opportunities: large untapped resources (the SME credit gap is $10 billion per year and 40% of population does not have access to financial services), mobile penetration and connectivity provide the infrastructure for highly scalable models and a solid start-up ecosystem, making Mexico a highly desirable destination for entrepreneurs and larger players alike.
Over the last decade, the Mexican government, banks and financial companies have been investing in technology and infrastructure. Companies such as BBVA, Citibank, BlackRock, American Express, VISA and Western Union have very active Mexican divisions and have recently adopted the mandate to develop new digital platforms, taking into account that only approximately half of the country´s 70 million active internet users has online banking.
One of the most ambitious recent reforms was in the finance sector. It now offers a more favourable legal environment for financial operations to increase competition with more than 50 new bank licenses issued during the current Administration. Financial inclusion has also been a top priority. More recently, the President signed the Fintech bill, and once the legislative process is concluded, Mexico will be the first country in the region to have sector-specific regulation
Insurance and Reinsurance
Mexico offers attractive opportunities to the London insurance market and to Lloyd’s syndicates. It is the second largest insurance market and the largest source of premiums for Lloyd’s in Latin America, yet it has one of the lowest penetration rates in the region. It has a state-of-the-art regulation and a diligent regulatory authority. Moreover, the structural reforms in infrastructure and in the energy sector have opened the market to specialized insurance lines of business.
Mexico Day is the ideal setting to discuss and learn about the Mexican insurance sector, recent regulatory and legislative developments; the effects in the market of the recent implementation of Solvency II; the interests and current operations of Lloyd’s syndicates in Mexico; the potential impact of changes in the UK insurance regulation derived from Brexit; the appetite of Mexican insurance companies to join efforts with Lloyd’s syndicates to tackle opportunities originated by the structural reforms in Mexico; the performance of brokers, adjusters and advisors in reinsurance operations between Mexico and the UK; and the construction of Lloyd’s standard policy wordings in Mexico, among other relevant aspects for the improvement and expansion of the Mexican and British insurance and reinsurance business.
The Mexican Government’s investment in infrastructure reflects its ongoing commitment to foster the country’s economic development. In order to provide long term visibility to investors, Mexico has put in place a series of national plans and programmes that include a strategic vision for each sector.
An important number of infrastructure projects in different sectors has been successfully executed in Mexico with private sector participation, and different models of public-private participation have been implemented, including concessions for highways, railways, ports, airports and urban transport; Long Term Service Delivery Contracts including construction, operation and infrastructure maintenance for hospitals, jails and water infrastructure, among others, and Government Financed and shared risk mechanisms in the energy and hydrocarbons sectors. Mexico Day will showcase the new Infrastructure Projects Hub, new opportunities stemming from the new Special Economic Zones, and insights on the future of Mexico´s national infrastructure and development banks.