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The American Society warns that the Outsourcing Reform project will gravely endanger American investments in Mexico

·3 min read

MEXICO CITY, Jan. 28, 2021 /PRNewswire/ -- The President and Chairman of the Board of The American Society of Mexico, Larry Rubin, outlined today that the approval of the Outsourcing Reform project proposed by the Mexican President will make it difficult for U.S. companies and all corporations of different sizes to operate in Mexico, and in particular risk American investments in the country. "A reform of the law like it is proposed, will endanger U.S. companies plus put millions of SMEs and workers at risk at the worst possible time," Rubin said.

U.S.-Mexico trade accounts for 628 billion dollars in 2019.

Mexico's congress will discuss, starting next week, a bill that, if passed, will ban outsourcing as a way of hiring workers and place heavy burdens on all domestic and multinational companies.

The practice of outsourcing, recognized as strong and useful by the United States-Mexico-Canada Agreement (USMCA), is a tool used by all companies when entering other markets and operating both in the United States and elsewhere. "Outsourcing is a crucial instrument for entrepreneurs. It guarantees quality employment and security for workers, but also legal certainty for companies, and that is what is really at stake," Rubin explained. The United States leads foreign direct investment in Mexico, especially in automotive, technology, science and aerospace, companies that use outsourcing and insourcing as a major tool.

U.S. companies represented by The American Society, see the outsourcing law reform as a direct affect to Mexico's relations with the United States at a critical time, especially after the effects of the pandemic.

"The signal that Mexico will send to the world with this reform, will be poisonous, and contrary to the spirit of free enterprise. Mexico is in no position to send signals of this kind. It's a terrible decision, at the worst possible time," Rubin remarks. "U.S. companies have alternatives to choosing other countries over Mexico when crafting foreign investment strategies", Larry commented. The passing of the bill will affect job generation in Mexico, according to a number of business chambers and associations including The American Society. "The reality is that Mexico can't afford to lose millions of jobs because that is what it will cost Mexico to pass the proposal," Rubin said.

Larry Rubin is the President of the influential American Society of Mexico, which since 1942 represents the interests of two million Americans living in the country, American companies and NGOs from the United States.

A non-profit, non-partisan organization, it was established in its original charter to represent all U.S. private interests in Mexico.

Larry has been a leading American voice in Mexico and advocates about Mexico-U.S. relations for over 20 years. He is a former CEO of The American Chamber of Commerce and Vice President of the association of American Chambers of Commerce in Latin America. He has been key to supporting critical legislative proposals, and a critical voice with those trying to hurt Mexico-US relations. He is former General Director of American Airlines in Mexico, Vice President of the umbrella group of industrial chambers CONCAMIN, the Confederation of Industrial Chambers.

The mission of The American Society of Mexico is to foster friendship, cultural, business, and civic ties between The United States and Mexico and other countries that have diplomatic relations with both nations. AmSoc, as it is also known, is an advocate for Americans in Mexico and Mexicans in the United States, collaborate in the bilateral agenda set forward between both Mexico and the United States, and defend bilateral interests.

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View original content:http://www.prnewswire.com/news-releases/the-american-society-warns-that-the-outsourcing-reform-project-will-gravely-endanger-american-investments-in-mexico-301217754.html

SOURCE The American Society of Mexico