Narayan AmmachchiMexico’s president-elect, Andrés Manuel López Obrador, is reportedly planning to shutter the country’s investment promotion agency, ProMexico.
The agency could soon become a victim of the austerity measures that the incoming federal government has vowed to put in place, according to news portal Milenio.
Among the reasons that the agency is on the chopping block is the high salary claimed by CEO Paulo Carreño King, over US$14,700 per month, which is two and a half times more than the US$5,725 López Obrador says he will take home as president.
Of the US$58.3 million allocated to ProMexico this year, US$2.55 million went to paying just 20 high-level officials, reported Milenio.
Founded in 2007 by then-president Felipe Calderón, the agency is designed to promote trade and foreign direct investment in Mexico. Over the past decade, it has advised numerous potential investors on the benefits of investing in the country.
ProMexico was responsible for at least 40% of US$193 billion in foreign direct invest (FDI) the country has received under the administration of current President Enrique Peña Nieto, according to Mexico News Daily.
The agency has more than 45 offices in major global cities including New York, Beijing, Dubai, Madrid, and Moscow. Around 10 ProMéxico offices are based in Mexican embassies, with another 10 operating out of consulates. It has 15 offices in the United States alone, all of which will be shuttered once the new government takes office.
The incoming administration, according to Milenio, believes that the investment promotion agency is a burden on the exchequer and that its job can be carried out by the country’s ambassadors and consulates posted around the world.
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