INTERVIEW-Canada would hail easier investment rules in Mexico

By Louise Egan

OTTAWA, Aug 12 (Reuters) - Canada's top diplomat said on Tuesday he would welcome any regulatory changes in Mexico that might boost foreign investment but stopped short of an outright endorsement of Mexico's proposed energy sector reform.

Speaking by telephone from Mexico City, Trade Minister Michael Fortier said he would likely discuss the reforms -- which would open Mexico's state-run oil sector to private investment -- with Economy Minister Gerardo Ruiz Mateos at a meeting later on Tuesday.

"We'll be discussing all sorts of opportunities for Mexican and Canadian businesses to invest in each other's country so that might come up when I meet with him later on," Fortier said in an interview.

He declined to comment on the whether Mexico's ruling conservatives would be able to push the reform through an opposition-controlled Congress amid strong leftist opposition.

"I can't speak on the package itself nor on whether I think it will go through or not. But any environment where things are easier for Canadians to invest, any regulatory framework where basically you're facilitating the flow of capital, whether it be in the energy sector or in any other sector, is obviously welcome," Fortier said.

Fortier also expects the issue to arise during a meeting on Tuesday with Canadian businesses with interests in Mexico, including energy firm Nexen (NXY.TO).

Mexican President Felipe Calderon has launched an ambitious reform package that seeks to shore up declining output and reserves in the world's No. 6 oil producer.

It could open the door for companies like Nexen to sign performance-based contracts with the state-run oil firm Pemex, which is under pressure to develop deepwater operations in the Gulf of Mexico but is hard pressed to do so alone.