On the record:
Luis Videgaray Caso, 47, is the Mexican secretary of Finance and Public Credit.
In his role, Luis Videgaray Caso proposes, directs and controls the government’s economic policy. Videgaray Caso, who earned a Ph.D from MIT in economics, has extensive public and private sector experience. He visited the Chronicle’s editorial board on Monday, and our wide-ranging conversation with him touched on the importance of free trade, the U.S.-Mexico relationship and efficiencies at the border. Here are some highlights.
Why visit Houston: “A lot of the capital that is moving into Mexico is driven by people who make decisions here in Houston. A purpose of the trip is to be closer to that investor community.”
Trade partners: Trade between Texas and Mexico is very large. Texas runs a trade surplus with Mexico; many people don’t know that. Texas exports $95 million to Mexico every year.
U.S. presidential race: “Whoever is going to be the U.S. president, that’s a decision for the American people to make….Elections are a very passionate process. And what’s happening in the U.S., it’s happening throughout the world. There’s a lot of frustration. There’s a lot of anger and that is the basis for some extreme positions ... . ”
The proposed border wall: “We are not paying for the wall. And we will not be bullied into paying for the wall.”
The future: “I strongly believe North America can be the most competitive region in the world. We have the resources. We have energy, and we have people… and that can be the basis for prosperity and value creation for many, many years to come. That will outlast the electoral cycle.”
The border: “I think that both countries need to invest more in the border to make the border more secure and also more efficient. Trade between Mexico and the U.S. in the past 20 years has grown five-fold but investment in the border has not. The long lines that you see in the border are a symptom of the lost opportunity.”
Collaboration: “We have the first two pilots. One is in Laredo, Texas, and the other is in Tijuana, Mexico where we are doing joint customs reviews….Now we have customs agents — both Mexican and U.S. — working together in a single region…. I expect by the end of the year to have three or four more pilots.”
Mexican manufacturing: “We are an economy that is growing out of manufacturing. We export these cars, computers. People don’t know this: The largest exporter of flat screens is Mexico… Increasingly manufacturing in Mexico is growing quite competitive.”
Falling oil prices: “But the most important effect is perhaps on public finances. Just in 2012, oil revenues were 40 percent of government revenues. That has come down to 19 percent.”
Pemex: “We are supporting Pemex in many ways. We are putting in additional capital. We are providing tax relief. We made it public a couple of weeks ago. But the thing that is most important…is to provide support for change. Pemex, as any other oil company in the world, has to adjust to reality. It has to be more efficient.”
Prediction for future: “We’re not betting on the price of oil rebounding any time soon. And I think nobody should.”
Possible presidential bid: “This kind of job does not allow for that luxury — to be thinking about that. I’ve got a full plate. And I cannot afford to be distracted by that. And also you are the guy who is raising taxes. So perhaps it is not the best recommendation I can give to a candidate.”