 Good morning, everyone. My name is Leonel Fernandez for more president of the Dominican Republic I have the honor and pleasure of being able to speak today to the president of the United Mexican States Mr. Enrique Peña Nieto, I had the honor of sharing with you recently in Chile and I remembered We remembered our first meeting now. We have you here today I would say this is a memorable moment to talk about the achievements during the first year of your presidency with your reform package It's very interesting because four years ago in 2010 Mexico was celebrating its independence by centennial and it marked the creation of the nation state of Mexico and it also coincided With the hundred-year celebration of the Mexican Revolution With the caretaro constitution it introduced the social component for governor for governance Later They mentioned that your party the institutional revolutionary party the pre had ruled 71 years That it was needed some sort of democratic alternance in the country that happened 12 years past and now the pre is back in power with you with a very important reform agenda for the transformation of the country You have accomplished the pact for Mexico a pact that has five key points Divided in 95 commitments and I would like president for you to talk to us about how the pact of Mexico will bring about the social economic Cultural transformation of your country. Thank you very much. Mr. Luna Fernandez I am very pleased to be here in the forum for Latin America It's a great honor that I am here to share this panel with you so that I may share what is happening in Mexico Here I have an opportunity to greet many people from Latin America from Mexico and the remaining region Sister and brother countries all whom I have had the opportunity to Agreed in a different venues. I apologize for the slight delay. It's been a very hectic morning and because I Was with president martinelli and we signed the free trade agreement with Panama and other Tools for greater integration between the two countries, especially in economic matters I ask for your understanding and I you I Will try to be Very open in my participation Mexico is a country that has been consolidating its democracy in the past decades Few countries in the Latin American region and the rest of the world Can It can be said of them that For 100 years from 1934 that they've had a great economic political and social stability in Mexico in this democratic climate That is increasingly Consolidated a country that's more diverse more pluralistic where all voices are Recognized have representation within the different venues in the political sphere that our country has this has allowed This Political democratic mobility like you mentioned in 2010 after 70 years of rule by one country in Mexico My political party we had political alternance. We had two administrations Beginning in the year 2000 and in 2012 the party I represent again Won the election But regardless of the political reality in the country is very different We had a A hegem hegemony in the government now we have a plural participation diverse participation of political forces Within this context it was fundamental to establish conditions that would allow the country To change to effect structural changes that would make it possible for Mexico to attain Greater development growth in the next years This is what gave rise to the pact for Mexico that you mentioned the pact for Mexico is Nothing more than an agreement of political wills between the government of the Republic and the main political forces in the country We agreed jointly an agenda of structural changes that the country had postponed for years and That was a fundamental to undertake within this framework of the pact for Mexico It was eventual that There would arise natural differences However, the pact has provided Mexico with important structural changes So which I would like to refer to and just list them and we can expand on them first Labor reform in the transition period From the end of the previous government period and the beginning of the one that I lead it's a reform that Makes the labor market more flexible opens up hiring opportunities, especially for women young people who with little experience May have greater facility and joining the workforce beginning with this we Enacted reforms on a consensual basis a reform to improve the quality of education Recognizing that public policy in educational matters that had been undertaken until then had attained a Fundamental element, which is educational coverage at the basic level now preschool middle school high school and also upper high school and Higher education now the challenge is to ensure Quality and education and that's the goal of the education reform in Mexico Not only of a constitutional order, but through secondary legislation The topic has been how to achieve economic growth Competitiveness production now regarding that sphere because we know Mexico has macroeconomic stability There is a low inflation rate Interest rates are low, but you have faced economic growth challenges How is the pact of Mexico in your government? How do you intend to launch competitiveness and economic growth? I think there have been several ways That included in the one-sided list that whose fundamental goal is for Mexico to achieve greater economic growth because Mr. President The truth is that Mexico Even though it had had positive Economic growth rates on average in the last few years. They were below its potential An average of 2.4 percent per year low Even more so in contrast with other regional economies that have experienced far superior growth Facing this potential, there's reforms that will certainly influence economic growth for Mexico Will list some first a reform in Telecommunications to open up the sector to greater competition to achieve digital inclusion which is indeed a challenge today to ensure that all the population can enjoy these services in any part of our country and Economic competency reform Which intends to fight monopolies and establish conditions Optimal conditions within a legal framework to promote greater economic competition a Reform a financial reform that will basically Target the achievement of more credit To promote small and medium-sized businesses This points to Mexico's macroeconomic conditions, which are very favorable if the Mexican financial system is solid robust solvent And maybe with some adjustments that were made during the financial crisis that our country suffered in 1995 before that Before the economic crisis That due to institutional financial institutional reasons the world experienced later But this economic reform I insist is targeted to ensure greater access to credit for Mexicans And for small and medium-sized businesses fiscal reform That is directed at bolstering the economic capacity of the state its governments and also to lessen dependency on oil revenues and Energy reform which is perhaps the most important achieved within a sphere In which no legal modifications had been introduced in at least 50 years and which will become in the most important element to promote Mexico's economic growth the job creation and Regional development throughout the national territory this energy reform Will make it possible To have greater competition The Exploitation of new energy sources, especially clean energies And it ensures that this is the goal of the reform for Mexico to have for its Population for its small medium-sized companies, which are the ones that generate more jobs in Mexico To have access to energy supplies that are cheaper That better prices and this will generate greater competitiveness for our country I believe that this is the most important transcendental reform that Mexico has attained within this reform agenda that we have spoken about and right now The Congress is debating several of these issues Now other reforms have taken place within the constitutional framework, but now Congress is taking care of enacting secondary legislation To ensure the achievement and implementation of these reforms that I spoke about as you indicated the Mexican state shall continue to own hydrocarbons and Therefore the reform is not a private privatization How can the private sector participate in the reforms the ones especially in the energy and telecommunications sector in telecommunications? The reform first of all establishes That there will be a regulatory body Cistell That will open up more competition within the sector there will be more television Stations now we have practically to there will be more and additional one Owned by the Mexican state and this will open up competition and can you have foreign direct investment there? There will be foreign direct investment in terms of percentages Corresponding to reciprocity with other countries Where the cap the originating capital comes from? In regarding energy issues first it is very clear in the reform that we enacted last year that the Ownership of the hydrocarbons is and shall be the Mexican states However for its exploitation we open up the possibility of allowing the private sector to participate in the exploitation of these Pemex establishes conditions to allow for greater capacity and bolstering it Talk for allowing it to compete and this will open up Participation regarding hydrocarbons and energy sources to this effect a regulatory body will be created and It will establish a first of all a zero round in which Pemex establishes the areas That shall be developed and certainly Next year the beginning of the year. They will establish they will open up another round To establish the possibility of participation by the private sector this mechanism that I must insist in which the Ownership by the Mexican state prevails over hydrocarbons, but it generates mechanisms for the private sector to participate is Based on in the successful experiences of other countries Especially in the Latin American region. I can mention Brazil the Brazilian case the Colombian case Which undertook structural changes in this fear of precisely to Achieve greater yields in the energy sector and why is this so relevant reform in this matter? Because today we observe that the world the global map when it comes to energy production has changed Today we observe that the North American region particularly the United States has achieved a greater Self-sufficiency when it comes to energy matters that they now have new sources for exploitation especially shale gas and this a swath That aborders with our country So this North American region particularly the United States. It's made it a more competitive region So this forces Mexico to undertake structural changes to be in conditions of greater competition Competitiveness otherwise will be losing investment that could arrive in our country and that That having a more expensive energy supplies would not achieve I must insist the purpose of this reform is for energy supplies to be cheaper For Mexico to be more competitive to make it more possible to generate more jobs greater economic growth for our country Mr. President in regarding energy reform. We're talking about oil natural gas and The electrical sector reform and as you added the fact that in Mexico, you know, there's a shale gas That perhaps requires new regulation because it's a new element how can there be participation in the reform of the electrical sector and What regulation have you thought about regarding shale gas? Well, that's exactly what Congress is debating And as soon as the initiative is presented for the secondary legislation To maintain the spirit of the constitutional reform that has taken place in the energy sector How can we translate this to a secondary legislation that shall ensure that the Mexican state Will keep ownership over hydrocarbons and second as is also established in the Constitution What will be the mechanisms to speed up the exploitation of other energy generating sources? like shale gas and in matters of electrical energy the same as As in oil There has been created a regulatory body to promote the participation of the private sector To take advantage of the networks of distribution that the federal authorities have so that energy can be distributed through more regions and More regions of the country and more importantly to ensure that electric energy is cheaper at the end of the day the Federal Electricity Commission shall be the main generating energy body but The private sector might also become a co-generator of energy. So I will tell you that in Mexico We do have co-generation of electricity, but this benefit reaches basically only those who have the Financial capacity to generate electric energy But a small and medium-sized businesses and that the major users don't see benefits of Being able to generate a more energy with mechanisms With economic mechanisms at a lower cost and achieve as a result Paying less for electric energy So a Mexico has to become more competitive and the reform made regarding energy is a Aiming for this goal so that energy is a more it's cheaper in Mexico so that our hydrocarbo hydrocarbon exploitation May I become more competitive that our country can develop an industry with greater technology innovative capacity to compete in Mexico and generate energy and at the same time Generate more energy with the participation of the private sector and that this Benefits all Mexicans, especially small and medium-sized businesses, which are the ones that generate employment in our country Well, we clearly see in this a reform project of the fiscal reform Where Mexico only receives twelve percent of tax. It's probably one of the lower Lower countries in Latin America because of oil revenue The reforms in the energy sector telecommunications, but Looking at Mexico's development model when you analyze the situation of Latin America in the last ten years And you speak about this a bonanza. We've had we We've had a lot of exports of Raw resources to China, but there's also in Mexico manufacturing. There's a high technology software Aerospatial Automotive industry tied into the economy of the United States How do you see the sustainability of the Mexican economic model that is based on a capital-intensive? model Well, I I think that's the path that the right path that Mexico followed and must continue to follow First to be a great promoter of free free trade We are perhaps the most open a country in Latin American Latin America toward the world with our agreements that we have with different regions and countries and Consequently this has generated These structural changes to increase the country's competitiveness and to allow for a greater capacity For our own production Mexican made that allows us to cook that would allow us to compete in other markets and What can I say about Mexico? We are a country that without doubt has been incorporating Has achieved greater development in areas such as specialized manufacturing We are the fourth exporter in the world of vehicles to other regions We are the eighth producer and The fourth exporter We have been advancing in the aerospace industry. We have become the sixth provider for the United States in this field and Without a doubt our trade toward North America has intensified and I can say the same Regarding other specialized industries where we we hold a prominent place We are the first producer and exporter of TVs a plasmas Electric appliances, so I want to say that Mexico effectively Has been building and Creating a platform for its economic growth Based on first Becoming a center a logistical center Due to our geographic location that will allow us to participate in different Markets and to make Mexico a market a platform for participation for other countries So they can access at those other markets Mexico has free trade agreements that provide the opportunity to access a 1 billion person a people market And on the other hand we have incorporated specialized industries as In the example said, you know, I have used to illustrate What I have been talking about Mexico for example it our colleges graduate, which does not happen which does not happens In other countries about 100,000 engineers per year So this gives you an idea of where we're focusing our development for our country's economic growth and According to the line that you've drawn for us Mexico Has been following this for a few years. It's the same path we continue to take to promote today we work to ensure as a result of the educational reform that We will have these skills the capabilities of our students So they will be able to incorporate themselves into this labor market that has been built in Mexico this specialized Market and up also to ensure That they break away with a tradition of just a working just of maquilas, which are jobs that are perhaps are not Not well compensated. So today we are working to generate better-paying jobs higher quality jobs and that this demands greater specialization from our graduates and this path are really to enter these very competitive markets Mexico is prepared continues to prepare itself and continues up to promote its greater presence in them In this aspect the role of Mexico in the Pacific Alliance that will open up new perspectives What will Mexico's participation be in the transatlantic partnership if a North America if it involves North America the United States? Europe what will its impact be on Mexico? Well, these are you know in total agreement with Mexico's vision of being a faithful promoter of free trade that is why Mexico is so open to the world The agreements that have already been signed and the Pacific Alliance It is one of the most recent innovative agreements that we entered into with three other Latin American countries Chile, Peru, Colombia and Which allows us to have an integrated market? Not just for a flow of goods For trade, but also a free transit of people to share Capital markets and also to make this greater integration a platform a more competitive platform to Launch to enter the Asia Pacific market a market that without a doubt in the last few years has been growing Has experienced greater development and the countries those countries that believe in free trade We want to participate in it So the Pacific Alliance we believe promotes the integration of member countries Those that eventually might join it to be because they are consistent with the principles that inspire this Pacific Alliance agreement that has been signed that is right now in the process of being ratified by the member countries legislative Congresses and afterward After this consolidation Enter the Asia Pacific market We've also participated in negotiations for the TPP the Trans Pacific partnership with some of the countries Where some of the countries that are already participating in the Pacific Alliance are also working on now That's another mechanism for integration of American countries with the Asia Pacific region that probably has a lot of potential Mexico nowadays within this Negotiating table that we've worked on participates with great enthusiasm with full conviction that this mechanism Shall materialize as quickly as possible and Mexico Has manifested its political disposition its commitment to support Disagreement and this reaffirms our position of being open Mexico's position the one it shows the world and that it wants to continue President of Mexico traditionally has played a very active role relevant in the international scene Mexico is the second of most important economy in Latin America with a capacity of generating wealth in Of 1.3 trillion per year. It is a member of the G20 Which is a source of pride for all Latin Americans. How do you visualize? Mexico's new role as a global actor. It's ties to Central America the Caribbean to all of Latin America What can we expect from your a mandate? For Mexico as a global actor. Thank you, president Mexico and Especially for the government that I am honored to lead within its definition of great priorities there are five and One of them is for Mexico to fully assume its global responsibility. I have been working to that end first of all trying to seek closer ties for cooperation mechanisms with our countries in the Latin American region particularly the Central American and Caribbean region that are the regions that That are our neighbors our geographical neighbors and with the rest of Latin America and I believe that This is confirmed in the relationship the diplomatic Relationship that we have been working on that we have been building in a very intense manner This is ratified by the meetings. I have held with the Latin American Presidents the Caribbean presidents the definition determination of mechanisms for greater cooperation Also, Mexico is a country that is clearly committed to international law Mexico is a country committed to Sustainability and respect for the environment. I must say that Mexico is an extremely diverse country It is a privileged country Because of having in its territory Almost ten percent of biodiversity in the world. It is a country With the presence of many species that you cannot find elsewhere. It's part of our natural wealth Mexico is a country that is committed to the tools of fighting global warming however our contribution to global warming And might be less. It's only one percent, but not withstanding. Mexico has assumed legislation its own legislation in the several of its public policies To make a commitment to sustainability and respect for the environment Mexico wants to be a leader of this in this effort at the end of the day scientists have Recognized that this is happening Because humans you know human beings By working on the development that we have promoted we have you know sadly affected our environment and Mexico with great consistency Commitment has assumed its responsibility in Facing this phenomenon Mexico it shows solidarity Toward the causes of humankind it has shown solidarity In the fight against a nuclear disarmament to look for solutions to conflicts everywhere in the world peaceful solutions and Mexico Born out of this conviction respect of its principles which are written in our constitution shall continue to work consistently and Of course assuming its Responsibility within the order and peace that we want for the whole world President Peña Nieto we could continue talking to you all afternoon and especially we haven't talked about Mexico's Archaeological treasures Mexico's soft power, which is its culture the movies music literature and I take this opportunity to congratulate you on the 100th anniversary of Noted a literary a man Octavio Paz which we're celebrating and you have persuaded us that there is a very coherent consistent plan for Mexico to become an International dynamic presence and for all the transformations within Mexico that will enable the country to reach the growth of desires I Am seeing people telling me that you know we are We have to observe the 30 minutes allotted to you and we'd like to ask the audience for applause for President Peña Nieto and To ask you and to ask Marisol Ardita our executive director Our executive director for the Latin American forum who will up announce a matter of great importance before your Leadership and commitment to achieve this great consensus that is allowing this transformation structural transformation that are fundamental to Mexico and for Mexicans Mexico's living a great moment Which is favorable for Latin America also therefore the World Economic Forum would like to thank you and And accept with special pressure your Generous invitation to have to hold the World Economic Forum in 2015 in Mexico. Thank you, Mr. President Thank you very much Marisol Who is the senior director for Latin America for the World Economic Forum? Thank you all Mr. President Donald Fernandez once again, I would like to thank you for the opportunity of sharing with you briefly several of the changes especially structural changes conducted by Mexico within the last year and without a doubt they are oriented towards Maximizing the potential of our economic growth in a sustained way so that this will translate into the well-being and Greater social development for all Mexicans. I am pleased to see that within this Forum we are accepting the invite invitation to have Mexico as the venue for the 10th World Economic Forum for Latin America in our country The fact that is the 10th which also imposes a great challenge for our country. I hope that it Coincides with the progress made to that Forum so that it matches the progress that we make Until then it matches the structural reforms that have been conducted by Mexico. All of this will again Lead to the economic and social development for Mexicans And This World Economic Forum for Latin America is Definitely very relevant. It is because it joins the countries that have a greater Identity in terms of historic cultural and language similarities. We are brothers we share ideals and principles and Having a space For this great Latin American community this space is a space that we can share our experiences we can hear voices Authorized voices and that are of important reference so that we can enrich the actions From the government that will generate new public policies that will give more Development socially and economically for Latin America. This is growth. This is how we understand it from the World Economic Forum This is the purpose of having different events in different venues of the world and we Acknowledge the ones that are taking place here in Latin America in a very special way. That's why we accept with honor Having Mexico be the venue for next year's forum, which will enable us to Hear the voices of our brother countries and have other Countries in the region see what Mexico has been accomplishing in terms of its social and economic development Thank you very much for the honor of having Mexico as the next venue Thank you for allowing us to be here today