Energy and environment market conditions in Mexico

industries, many of the largest and fastest growing of which are in the energy and environmental sectors. This report reviews current market conditions in Mexico -- economic, policy, legal, technical, and financial -- as they relate to business opportunities in these two sectors. Specifically, the report provides: (1) an overview of the Mexican economy and the energy and environmental sectors; (2) specific market assessments of the oil and gas sector, the electric power sector, the industrial air pollution control sector, and the municipal and industrial water pollution control sector; and (3) an analysis of the Mexican business climate and procedures. Each of the sectors is projected to show significant growth over the next several years: 15% a year, through 1993, in the newly emerging air and water pollution control markets; a slower, but still attractive 9.5% annually in the power generation sector through 1994; and 3.8% annually, through 1994, in the oil and gas exploration and development market. The Mexican government has taken many positive steps to improve the country"s business climate, including trade and foreign exchange liberalization, foreign investment incentives, and strengthened intellectual property regulation. The North American Free Trade Agreement is expected to further improve the business climate in Mexico.