Mexico

Mexico is assessed as VERY HIGH risk. 

 

The main risk to business operations comes from the ongoing cartel turf war that has destabilised Mexico's security environment. 

 

The risk of corruption at a state and municipal level will increase in the run up to the June 2015 elections as politicians attempt to raise funds for electrol campaigns.

 

High crime rates, frequent kidnappings, endemic corruption and continued civil unrest present a significant challenge to business operations.

 

Political stability is likely to increase as the government is expected to  remain in office until 2018.

 

Political Risk

• The political situation in Mexico is likely to remain stable for the next three years

• President Pena Nieto is pro foreign investment and is unlikely to expropriate assets or enforce regulations that might decrease foreign development

• Corruption is endemic throughout all levels of the Mexican public sector and is unlikely to improve in the medium-term. There is likely to be a short-term increase in corruption levels as state and municiple officials increase kickback requests in a bid to raise capital for their electrol campaigns

• Increased environmental scrutiny may affect foreign contracts in Mexico 

 

Asset Risk 

• Crime and security pose a significant threat to assets in Mexico, especially in high-risk states

• Assets face an increased risk from collateral damage from cartel warfare, especially in areas outside Mexico City

• Organised crime gangs can seize assets for extortion in areas controlled by cartel gangs

• Protests are likely to increase across the country in the near term and the risk of damage from violent civil unrest will continue to increase

 

Logistic Risk 

• The risk to cargo in Mexico remains high and is unlikely to improve in the foreseeable future. Robberies are often violent and well planned

• Fuel theft has increased in recent months and is unlikely to abide in high risk areas

• Rail cargo is also often targeted across the country 

 

Personnel Risk

• The risk to personnel in Mexico is VERY HIGH

• The main risk to personnel is from high crime rates, especially violent crime

• Although over 90% of drug-related deaths are gangsters or law enforcement officials, there is still a high risk of collateral injury to personnel

• The risk from kidnap and ransom remains significant, however foreigners are rarely targeted directly

• Express kidnappings pose a significant risk to business personnel and travellers to Mexico

• There is a risk of police detention to for travellers and business persons in Mexico. Corruption is rife in the policing sector and foreigners, perceived as wealthy, may be targeted

 

 

To talk to a consultant about receiving a full Country Risk Report for Mexico, or any other country contact us directly