Mexican Companies Shun Investing in Cuba

Friday, May 30, 2014
From Monitor Global Outlook:

More than 50 Mexican business leaders paid an official visit to Cuba on May 26-27 to look at new business opportunities.

Soon after Cuba passed a law seeking to increase foreign investment, Mexico’s promotion agency traveled to Havana, where it opened an office and signed an agreement to stimulate economic development.

More than 50 representatives from Mexico’s business community, including large transnationals such as Nestlé México, Unilever, and Omnilife, were part of the official visit on May 26-27. According to Rodolfo Balmaceda, who was invited to Cuba as commercial director for the industrial park developer Vesta, opportunities abound for exports to Cuba, but direct investment on the island by Mexican companies is not likely in the short term.

“There are very clear opportunities for exporting to Cuba, especially in the sectors of food, pharmaceuticals, and auto parts,” Mr. Balmaceda tells Monitor Global Outlook. “I don’t see at this moment much opportunity for Mexico to go and build hotels, industrial parks. This is very incipient, but the route it’s taking is to open opportunities for business with Cuba.”