Companies in Mexico has been experiencing a changing regulatory environment. Managers need to analyze it in order to make the necessary adjustments to the company strategies.

José Luis Ortiz

Mexico has been experiencing a new political regime since December 2018. Foreign companies in Mexico, as any other company, have had to deal with a two sides Mexican regulatory game.

On one side we have “the macro game”: the game with the big infrastructure projects (NAIM, Tren Maya, Dos Bocas); the autonomous regulatory organisms being threatened (CNDH, INE, CRE, IFT, COFECE); the new -and cleaner- forms of energy being diminished (https://www.eluniversal.com.mx/english/mexicos-new-renewable-energy-policies-limit-participation-private-sector ); the new political instruments that the Federal Government has implemented (Guardia Nacional, INSABI, Education Reform, Jóvenes Construyendo el Futuro); the way the Federal Government assigns public contracts; the relationship with the drug cartels -and in general with pursuing felonies; a game which seems not to care about regulations and law enforcement.

On the other side we have “the micro game”: the game where the fiscal authority (SAT) may use the law to threaten Mexican companies, where the equivalent to the Department of Labor (STPS) may use new norms to frighten them; a game where the regulatory system is used by the Government to confront the private sector.

And in between, we have the Congress -currently controlled by MORENA- trying to issue new regulations in order to enforce the already concentrated power of the Mexican President. (https://www.economist.com/finance-and-economics/2019/11/07/mexicos-radical-president-serves-up-economic-mediocrity )

So, a company in Mexico has to learn how to read and how to surf with this “two sides Mexican regulatory game”. A game that may be exhausting and that in fact, may impact the company performance and goals. Any SWOT analysis has to consider the regulatory environment in order to identify the Opportunities and Threats of the company, to stablish the corresponding strategies to reach its goals. Furthermore, the regulations that apply to our company embraces its Compliance Program.

It´s been relatively a short period of time since this changing environment is affecting this way the companies in Mexico, so as managers it´s important to be aware of it and to take the corresponding actions inside the company, and to make the necessary adjustments in the operational and commercial strategies. This is a challenging time in the planning process, and it is also a challenging time in the day to day operations of our companies. (https://mexiconewsdaily.com/news/mexico-falls-off-list-of-10-most-attractive-countries-for-investment/ )

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