Can Mexico be competitive in the forest sector from a financial perspective?

Abstract

Throughout its history, Mexico has not been characterized as a competitive country in the forest sector. However, certain conditions and circumstances could promote its significant economic takeoff. The purpose of this paper is to analyze these factors and their feasible application in Mexico. The conditions that define competitiveness and the factors that characterize them are examined from a commercial perspective with a spatial focus, ranging from local to regional, national, and, ultimately, international competitiveness. Mexico's competitiveness in terms of timber products is conditioned by forest land tenure, in two modalities: ejido and communal. The factors that determine competitiveness under either of these conditions are considered as follows. The challenges that must be overcome to improve the competitiveness of the sector, as well as a list of the opportunities that Mexican forests offer for this purpose, are examined herein. Finally, recommendations are established to improve the competitive level of the country's forest sector. Emphasis is placed on adopting modern technologies, designing public policies with a short-, medium- and long-term vision, an efficient public administration, an appropriate regulatory framework, the availability of financing and accessible subsidies, and the necessary training and advice at all stages of the production and value chains. The promotion of forest plantations to increase production and productivity of the national forest sector is highlighted.