Security a concern for investors in Mexico, says Petraeus

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Tuesday, September 30, 2014

Mexico holds significant potential for investors, particularly its oil and gas sector, but security remains a concern, according to retired US general and former CIA director David Petraeus.

In comments to Ernst & Young's Privcap report, Petraeus said the road to Mexico's prosperity is not without speed bumps, given the challenges to the rule of law that exist in the country.

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Security, particularly the threat of massive criminal enterprises involved in drug trafficking, remains a concern, said Petraeus, currently chairman of KKR Global Institute.

"Mexico's got a variety of different challenges, but there's also no question that President [Enrique] Peña Nieto has really been taking them on quite head-on," he was quoted as saying.

The cost of labor in Mexico is now only a bit more expensive than in China, meaning manufacturing may be 'in-shored' back to Mexico, where improved technology would help boost productivity, he added.

BNamericas will host its 11th Southern Cone Energy Summit in Lima, Peru, on November 12-13. Click here to download the agenda.