Drill rig owned by Precision Drilling, a company already active in Mexico.CALGARY HERALDCanada-Mexico Partnership is meeting in Canada's oil capital this week
At least two Canadian business promoters are bullish on Canada-Mexico trade, and are hailing the importance of this week’s annual meeting of the Canada-Mexico Partnership.
For only the second time in its 10-year history, the Partnership, formed to encourage bilateral cooperation between the two countries, is holding the Canadian version of its annual meeting outside Ottawa. Calgary, Alberta, is the site of this year’s gathering, which is seen as significant for the opportunities Mexico offers to Western Canadian business.
Trade and investment specialist Carlo Dade of the Canada West Foundation and David Robillard, president of the Canadian Chamber of Commerce in Mexico, write that the location of the meeting is another sign of Calgary’s rise as an international center.
But more importantly, energy reform in Mexico means good things for the Canadian energy industry. “Compared to more distant markets, the huge array of opportunities in the booming new Mexico are arguably the easiest for Western Canadian companies,” the two write in an opinion piece published in Canadian newspapers today.
They cite three Canadian drilling and service companies that are already active in Mexico, and that deregulation will make it easier for them and for new entrants from Canada.
Their article points out that oil production in Mexico is forecast to rise by 3 million barrels a day by 2018, and that shale gas development is also coming on line. “And as opposed to Canada, Mexico will actually be building pipelines.”
Among the advantages of dealing with Mexico rather than with Asia, long seen as holding great potential for Canadian trade, are its proximity, the writers say. It’s a five and a half hour flight as opposed to 12 to Asia. Plus Mexico has a business culture and language that are more North American.
But most significant, they say, is the interest the Mexican government is showing in western Canada. In June, it chose Calgary, not Houston, Texas, as the location for its first foreign presentation regarding the energy reforms. Cooperation agreements have been signed by both countries’ energy regulators and the University of Calgary is being encouraged by the Mexican government to expand ties in Mexico.
Canadian Foreign Affairs Minister John Baird said yesterday that 2014 is a special year for the two countries, in that it marks their 70th anniversary of diplomatic relations, and the 20th anniversary of the North American Free Trade Agreement.
He also noted that Calgary was a fitting site for the Partnership meeting and an opportunity to highlight the importance of energy to both countries following the “landmark reforms” passed by the Mexican Congress last month.
The Calgary meeting will involve some 150 participants discussing topics such as agri-business, energy, the environment, forestry, housing and urban development and trade and investment. It wraps up tomorrow.
Last Monday, the head of Mexico’s state-owned development bank finished up a week-long Canadian visit to establish alliances with financial institutions. Enrique de la Madrid of Bancomext is looking to boost commercial lending in Mexico, particularly in the energy sector, and ensure there’s enough capital for the reform programs to succeed.
The only thing that has not been mentioned in all the initiatives to strengthen ties between the two countries is the visa requirement for Mexicans to enter Canada. It is one of the few obstructions to freer trade and investment and not an encouragement for better relations.
Mexico News Daily
