Los Cabos, BCS. November 9, 2023. Within the framework of the Summit 2023 Prosperity Prosperity Purpose Possible, Sea of Cortez Forum and the Federal Economic Competition Commission (Cofece) established a work agreement which aims to ensure free competition and promote the development of the economic competitionto make this a more competitive and attractive region for investments.
By Sea of Cortez Forum signed the agreement Agustin Coppel LukenHonorary President, and Radamés Díaz MezaPresident and Chief Executive Officer, while for Cofece the rubric was recorded by José Nery Pérez TrujilloDirector of Planning, Liaison and International Affairs.
Cofece is the agency in charge of monitoring local regulations to prevent them from harming the efficient functioning of markets. By correcting the regulatory framework, the business climate is strengthened, legal certainty is granted to investors and, as a consequence, greater opportunities for economic growth and development are created.
Diaz Meza explained that through this agreement between Sea of Cortez Forum y Cofece the principles of competition in the markets will be promoted to improve the business climate and certainty for investors.
"We want order in the exercise of the free market, we do not want disorder, we want clear rules, rule of law, legal certainty, and Cofece will help us to carry out training in the legal and business areas. I am pleased that this agreement is taking place," he said.
These are characteristics of the mechanism agreement
The main objective of this mechanism is to establish a basis for cooperation and then give way to a more far-reaching collaboration, which will strengthen economic competition in the territory of the region. Sea of Cortez Region.
The first step of this mechanism will be working meetings to define the terms of the cooperation, planning and follow-up of actions and commitments, in addition to training for public servantss of the 5 states of the region, the definition of deadlines and the establishment of a work schedule.
Competition is indispensable for prosperity: Cofece
Pérez Trujillo thanked Sea of Corte Forums the invitation and the opportunity to collaborate to improve the regulation of companies and governments in the five states that make up the region.
"Competition is a prerequisite for prosperity. Our role is to support the business sector and to support state and municipal governments, so that they attract investment and attract talent, and conquer growth and economic development," he said.
The federal official stressed that Sea of Cortez is a fundamental forum to collaborate and facilitate the growth and development of the entire region.
Competitiveness of the region
The five states that make up the Sea of Cortés Region are of great relevance to the economy of the country. Mexico. Overall, the Gross Domestic Product (GDP) of Baja California, Baja California Sur, Nayarit, Sinaloa y Sonorarepresents a little more than 10% of the National GDP and its share in the national product has increased by almost 9% in the last 10 years, due to the fact that the region's average growth rates are almost double that of the country.
The State Competitiveness Index 2023of the Mexican Institute for Competitiveness (IMCO), places the five states among the 15 most competitive in the country, with Baja California Sur in fifth place, Sonora in ninth, Baja California in tenth, Sinaloa in eleventh and Nayarit in fourteenth, however, in the economic competitiveness sub-index Baja California Sur (14), Sinaloa (15) and Nayarit (21) have dropped places with respect to the general index, where Baja California is fourth and Sonora sixth.
Competition generates markets with greater innovation, greater diversity of products and services, lower prices and greater attraction of new investors. Competitive markets generate virtuous circles that strengthen economic dynamics.
When there are incentives for new companies to enter the market and for established companies to innovate and invest in their production processes, there is a greater and better supply of goods and services.
Intense competition is synonymous with growing markets that offer opportunities for the development of foreign investment, as is currently the case in the country with the nearshoringThis boosts regional economies by stimulating demand for inputs and products from local companies, thus renewing the virtuous circle of competition.
