G-20 Urges Mexico Reforms | El Economista

G-20 Urges Mexico Reforms | El Economista

At the conclusion of the G-20 summit in Toronto, leaders urged Mexico to take urgent steps to implement structural changes and forge ahead with changes that will make the economy more competitive, such as trade liberalization, according to Finance Secretary Ernesto Cordero.

Cordero noted that those attending the summit specifically asked Mexico and other developing members of the elite group to eliminate trade barriers to detonate the potential of international trade and thus boost economic development.

The recent crisis demonstrated that free trade allowed a swifter recovery, which is why the elimination of protectionist barriers was a key subject at the summit, Cordero said. He said that a crucial task still pending for Mexico is to stimulate internal demand.


Structural Changes Needed

The structural changes that Mexico needs to improve productivity and growth must be deep and should be urgently implemented, agreed over the weekend at a strategy meeting in Washington Finance Undersecretary Alejandro Werner and Santiago Levy, a former Finance Secretariat official who is currently vice-president of the Inter-American Development Bank.

Werner said Mexico is keeping a close watch on exports to the United States, which show a downward trend because of the economic crisis. In this context, he said, Mexico must turn to reforms that will help stimulate domestic market growth.

Levy said one of the causes of concern in the Mexican economy is the rapid growth of the informal sector, which is advancing at a much faster clip than formally established business. Illegal (informal) businesses are now 10 times the size of the formal sector, he claims.