American firms invest in Mexico despite threats

American investors bring to Mexico the largest production capital in 15 years
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Despite the threats of the American President, Donald Trump, American investors bring to Mexico the largest production capital in 15 years.

According to the information of the Ministry of Economy, American firms have made new direct investments in Mexico for a total amount of 2 thousand 97 million dollars during the second quarter of the year – which represents the largest investment since 2002 for the same term.

Moreover, investment attracted during the second quarter of 2017 almost triples the flows by 724 million dollars which came into the country during the same term in 2016.

Foreign investments have the objective of incorporating new companies with foreign shares in their capital, as well as foreign investment in existing Mexican companies, among other related movements.

The United States was the country which brought more new investments to Mexico, representing 67% of the foreign capital.

After Donald Trump won the elections in the United States, he threatened to charge a 35% tax to American companies investing in foreign countries which planned to reintroduce their products into the American market.

The warnings of the American President are believed to be the reason behind the investment cancellation of the automotive giant Ford in Mexican territory, and the air conditioner manufacturer Carrier, in early 2017. However, most American companies weren't frightened by the mogul's threats, according to the data of the Ministry of Economy.

“The absence of economic policies by the government of the United States was an incentive  American companies needed to invest in Mexico. Seeing that the Trump administration hasn't approved any law or amendment to favor the economy of that country,” said Alejandro Cervantes, senior economist at Banorte.

In addition to the new investments, the US directly gave the Mexican economy one billion 428 million dollars, arising from debts between Mexican corporations with foreign capital and other related companies overseas.


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