When the International economic crisis hit Mexico in late 2008, Conagua (Mexican Water Commission) established that its funding of public sector water projects would continue forward without delays. And, while one can argue that many projects did continue forward, especially in 2009, projects in 2010 were dramatically affected by budget, political/electoral, and typical Mexican bid bureaucracy. It appears now that many projects delayed in 2010 will likely come back on line in 2011. However, LGA Consulting warns that for foreign companies, it sees only serious concerns and larger problems and deceptions affecting their participation, or ability to participate, in Mexican public sector projects now and in the foreseeable future.
This article will explain the blurring that has taken place between National and International bids in general and especially with new and stricter national content regulations, as well as how ineffective NAFTA has been in protecting US and Canadian companies from this new Mexican protectionism. It will also discuss how and why foreign companies and companies trying to provide non-Mexican made product should be concerned about remaining viable in the Mexican public water sector.
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