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Patricio Cumming is a senior associate with the Mexican law firm Gonzalez Calvillo SC. Christie Stephenson is executive director of the Peter P. Dhillon Centre for Business Ethics at the University of British Columbia’s Sauder School of Business.
Mexico is undergoing a seismic political change. President Andres Manuel Lopez Obrador, who took office last December, promises a system that works for the many and not just the few. In this context, Canada is a crucial stakeholder. Specifically, the Canadian mining industry has the opportunity to be a key driver in achieving the sustainable development goals the Mexican government pledges.
Mining is a significant part of the Mexican economy and, according to Global Affairs Canada, roughly 70 per cent of foreign-owned mining companies operating in the country are based in Canada. Mr. Lopez Obrador has promised to scrutinize the treatment of Indigenous populations and the environmental impacts of mining.
Many investors worry that the risk of contract cancellations and project delays are higher under Mr. Lopez Obrador. However, mining companies committed to sustainability and best practices will likely thrive in this environment.
After winning a landslide election, which included a majority in both houses of Congress, Mr. Lopez Obrador promised to rid Mexico of poverty, corruption, violence and inequality. He attributes these maladies to failed “neo-liberal policies” adopted in Mexico since the late 1980s.
According to the Organisation for Economic Co-operation and Development, Mexico is among the most unequal countries in the world. However, under the policies with which the Lopez Obrador regime takes issue, Mexico has seen macroeconomic stability, free trade and open markets, which have resulted in significant levels of foreign investment.
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