Canadian Lawyer InHouse

october 2014 20 INHOUSE "At the end of the day you are not able to deal with something that is an issue of pub- lic safety with a military intervention and war," he says. "When you are trying to deal with a situation like that with violence, you are creating more chaos." But in the midst of the violence, Cruz Rico got an unexpected request. A Cana- dian company reached out to him and asked him for some advice. "They had some questions about Mexi- co," he says. "And I said, 'honestly, I have been practising mainly criminal law in Mexico.' But they said: 'We have some con- cerns, we have lawyers in Mexico and we are not getting the proper answers that we are looking for.'" That was a turning point for Cruz Rico who now leads Cruz Herrara Ltd. in To- ronto. Since then, he has been assisting Ca- nadian companies and individuals looking to do business in Mexico, both as Ontario's first foreign legal consultant for Mexico and, more recently, as a lawyer called to the bar in Ontario. Canada and Mexico have been doing a brisk business for decades. This year marked the 20th anniversary of the North American Free Trade Agreement, which greatly expanded levels of trade and invest- ment between the two countries. As of 2012, Mexico was Canada's third-largest source of imports and the fifth-largest market for Ca- nadian exports. But despite the commitment demonstrat- ed by a handful of Canadian corporate gi- ants like Bombardier, Scotiabank, Linamar, and Magna, many Canadian companies seem strangely wary about Mexico. "Even after the 2009 financial crisis made it plain the U.S. economy had entered a pe- riod of stagnation, Canadians seemed more interested in the far-off and more uncertain prospects of China, India and Brazil — economies characterized by high growth and large populations but also formidable market access barriers," wrote Laura Daw- son, president of Dawson Strategic, in a recent report for the Canadian Council of Chief Executives. Mexico's reputation for violence certainly hasn't helped. After almost a decade of fe- verish media coverage, many Canadians are now more likely to associate Mexico with gangland executions in Ciudad Juárez than white-sand beaches in Puerto Vallarta or humming factories in Monterrey. But mir- roring the trajectory of Cruz Rico's career, Mexico's past may be associated with crime, the future will be all business. On Aug. 11, Enrique Peña Nieto, the youthful president of Mexico, signed into law what may prove to be some of the most important legislation in Mexican history. The target was the oil and gas sector, which has been a government monopoly for three- quarters of a century. The energy reforms were the capstone in a sweeping effort to break down Mexico's old monopolies and oligopolies and turn the country into an easier place to do busi- ness. Telecommunications, education, and electricity have all been targets, but the sweeping changes to the oil and gas busi- ness are the most revolutionary — and represent the biggest opportunity for Ca- nadian companies. Since 1938, Petróleos Mexicanos, better Innovatio is the pre-eminent award program celebrating in-house counsel, both individuals and teams, who have shown leadership through innovation, creativity, and effi ciency in order to meet the needs of their clients and organizations. Deadline for 2015 nominations is November 15, 2014. Contact jen.brown@thomsonreuters.com for details. Nominations are now open for the 2015 Innovatio Awards at: www.innovatio-awards.com

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