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2007 OECD Economic Surveys: Mexico 2007

image of OECD Economic Surveys: Mexico 2007

This edition of OECD's periodic economic survey of Mexico examines key challenges Mexico faces in the medium-term including strengthening public finances, maximising the gains from integration into the world economy, improving infrastructure (including transport, telecommunications, electricity, and natural gas), and creating more and better jobs to alleviate poverty.

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Maximising the gains from integration in the world economy

This chapter discusses Mexico’s foreign trade and investment policies and provides specific recommendations to enhance the benefits of a closer integration in the world economy. Over the last twenty years, Mexico has made significant progress in reducing barriers to trade and foreign direct investment (FDI), and this has boosted GDP per capita growth. Nevertheless, Mexico needs to make further progress in reforming its trade policy by further reducing MFN tariff barriers and non-tariff barriers so as to promote efficiency in the economy. Barriers to FDI remain high, particularly in some services and infrastructure sectors, such as telecommunications and domestic land transport. Restrictions to foreign ownership should be eased to attract higher inflows and thereby improve productivity. To broaden the benefits from FDI, supplier linkages between FDI investors and other firms in Mexico should be enhanced.

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