Alliance 18 by USMCOC

EDITORIAL COUNCIL UNITED STATES - MEXICO CHAMBER OF COMMERCE Albert C. Zapanta, President & CEO, Binational Headquarters; Francisco López Espinoza, CEO, MULTICOLOR Industria Gráfica; Eric Rojo, Vice-President/Mexico Liaison; Joseph R. Chapa, Vice-President, International Trade Development Centers; Gerardo Funes, Vice-President of Communications; Cecilia López, Publishing Manager; Jill Martínez, publisher, www.IrvingOnline.com; and Francisco López Rivera, General Manager of MULTICOLOR Industria Gráfica.

PROMEXE´S ADMINISTRATIVE COUNCIL Rafael López Rivera rafa.lopez@multicolorig.com Francisco López Espinoza fjlopez@multicolorig.com Francisco López Rivera fco.lopez@multicolorig.com

PUBLISHING COORDINATORS Executive Director Rafael López Rivera rafa.lopez@multicolorig.com Vice-President of Communications Gerardo Funes gerardo@usmcoc.org Publishing Manager Cecilia López ceci.lopez@sbcglobal.net

CONCEPT & MAGAZINE DESIGN Editorial Coordinator Yolanda Ivette Castillo Vázquez icastillo@promexe.com Graphic Designer Areli Jeanette Sayas Hernández asayas@promexe.com

EDITORIAL CONTRIBUTORS Nicole Nicefore

PRINTED

Editorial

ith the anticipation of the coming cherry blossoms and the American and National baseball teams in the middle of their spring training seasons, staff at the USMCOC is putting the finishing touches on our newest issue of Alliance Magazine.

Washington, D.C. is once again bustling with activity. People are slowly beginning to emerge after the winter hibernation. Tour busses, tourists and events are the norm. Residents and tourists alike are pounding the pavement to soak up the sights and sounds that are synonymous with our nation’s capital. As you will read in this issue of Alliance, the USMCOC recently held two binational events, one in Washington, D.C. and the other one in Mexico City. The first event was the 16th Annual U.S.-Mexico Congressional Border Issues Conference on Capitol Hill. Each year the USMCOC invites key members of the U.S. House of Representatives and the Senate along with Mexican government representatives to discuss issues affecting our border region and its people. The 16th edition of the conference marked the last time that Congressman Silvestre Reyes (D-TX) participated as the conference co-chair since his term ended in January 2013. I would like to thank Congressman Reyes for his friendship, leadership and public service, and particularly for his commitment and support to the Chamber over the past sixteen years. The second binational event was the Binational Meeting & Awards Gala Dinner 2012. The theme for the conference, held at the Four Seasons Hotel in Mexico City, was Mexico 2012: A Year of Political & Social Transition. As you will read in the article, the conference and gala offered an unparalleled opportunity to meet with government and corporate officials involved in U.S.-Mexico business development. The gala dinner will be remembered as a bittersweet moment when participants were presented with the opportunity to honor and bid farewell to two esteemed members of President Felipe Calderon’s cabinet, Secretary of Tourism Gloria Guevara and Secretary of the Economy Bruno Ferrari. Also, as part of the binational meeting, the Chamber hosted a Special Binational Delegation comprised of distinguished public and private sector leaders who attended the highly publicized inaugural of Mexico’s newly elected President Enrique Peña Nieto. We are extremely pleased to have the cover story of our magazine written by President Enrique Peña Nieto in which he shares his goals and the first major decisions of his administration, as well as provides an exclusive interview for the Chamber.

For advertising inquiries, contact: Rafael López rafa.lopez@multicolorig.com Executive Director Gerardo Funes gerardo@usmcoc.org Vice-President of Communications Cecilia López ceci.lopez@sbcglobal.net Publishing Manager ©JuanCarlosMorales Presidencia de la República - México ALLIANCE is a quarterly publication of the United States-Mexico Chamber of Commerce and Promotora Mexicana de Ediciones S.A. de C.V., for the binational enterprise sector. Mexico office: Av. Jose Maria Chavez No. 3408, Ciudad Industrial; Aguascalientes, Ags., Mexico (www.promexe.com) United States office: United States-Mexico Chamber of Commerce, 5510 Cherokee Ave. Ste. 120, Alexandria, VA 22313-2320. Mailing address: P.O. Box 14414, Washington, D.C. 20044. Printed by Multicolor Industria Grafica, S.A. de C.V. Av. Jose Maria Chavez No. 3408, Ciudad Industrial; Aguascalientes, Ags., Mex. Specifications: Total production; 2,000 units, covers: couche paper 135 grs. Varnish UV, interiors: couche paper 135 grs. Impression: offset full color. The views expressed in this magazine are the responsibility of the authors and do not necessarily reflect official positions of the U.S.-Mexico Chamber of Commerce, its members or supporters. Our goal is to present a broad range of perspectives on shared bilateral issues.

The Chamber and the U.S.-Mexico Cultural and Educational Foundation started 2013 with the Fiesta Americana Inaugural Ball, a celebration of the United States’ 57th Presidential Inauguration and a means of fostering relationships among the U.S., the U.S. Hispanic community, and the Americas. In this issue of Alliance, we are pleased to thank all our contributors for their submissions to our publication. We are honored to share the work of so many committed and thoughtful people. And finally, we would like to thank our readers and those who helped put this publication together. We hope you enjoy this edition of Alliance Magazine. We look forward to seeing you at our events and especially at our Annual Meeting, Conference and Good Neighbor Awards Gala on May 22-23, 2013, in Washington, D.C. Please check our Web site, www.usmcoc.org, for the dates and locations of our upcoming events.

Sincerely

Albert Zapanta

President & CEO

The U.S.-Mexico Chamber of Commerce salutes President Enrique Pe単a Nieto as he starts his six-year term as President of Mexico. The Chamber is proud to include him again in this issue of Alliance Magazine. He is shown in the photograph receiving the Good Neighbor Award from Chamber President and CEO Albert Zapanta, at the Annual Gala in Washington, D.C., in May 2011, while he was Governor of the State of Mexico.

The U.S.-Mexico Chamber of Commerce

is honored to welcome Amb. Eduardo Medina Mora, Ambassador of Mexico to the United States, as the Honorary President of the Chamber.

CHAPTER OFFICES

OF INTEREST

OFICINAS DEL CAPÍTULO

DE INTERÉS

10 BORDER ISSUES PENDIENTE

ARTÍCULO DE PORTADA

It Is Time to Move Mexico Forward ENRIQUE PEÑA NIETO

OPINIÓN

FIESTA AMERICANA FIESTA AMERICANA

20 28

OPINION

EVENTO BINACIONAL

16 18

THE COVER

BINATIONAL EVENT

CHAPTER ACTIVITIES

ACTIVIDADES DEL CAPÍTULO

38 • Forces and Threats to Mexico’s Economic Recovery • Mexico’s New Labor Law: A Step Forward to Greater Competitiveness • The U.S.-Mexico High Level Regulatory Cooperation Council: Actions oriented to boost trade, investment and reduce costs for • doing business • Reform in Mexico’s Oil and Gas Sector: Unlocking the Potential

52 BORDER ISSUES PENDIENTE

MEMBER HIGHLIGHTS MIEMBRO DESTACADO

54 3

CHAPTER OFFICES THE AMBASSADOR OF GOOD BUSINESS www.usmcoc.org

Al Zapanta President & CEO zapantaz@usmcoc.org Tel: (703) 752-4751 Fax: (703) 642-1088

Gerardo Funes Vice-President of Communications gerardo@usmcoc.org Tel: (703) 752-4751 x 107 Fax: (703) 642-1088

Joe Chapa Vice-President International Trade Development Centers jrchapa@usmcoc.org Tel: (214) 329-4559 Fax: (703) 642-1088

BINATIONAL HEADQUARTERS / OFICINAS GENERALES 6800 Versar Center. Ste. 450 Springfield, VA 22151 Mail to: P.O. Box 14414, Washington, D.C. 20044

California Regional Chapter Los Angeles, CA Marlen Marroquin Executive Director 1800 Century Park East Suite 300 Los Angeles, CA 90067 310-922-0206 1800 Century Park East Suite 300 Los Angeles, CA 90067 Tel: (310) 922-0206 marlen@usmcocca.org

Mid-America Chapter Chicago, IL Blanca Berthier Executive Director Blue Cross Blue Shield Building 300 E. Randolph Dr. 49th floor Chicago, Il 60601 Tel: (312) 729-1355 / (312) 729-1356 Fax: (312) 729-1354 blanca.berthier@usmcoc.org

Pacífico Chapter Guadalajara, Jal Jesús Galván Álvarez Executive Director Córdoba #2606, Col. Providencia Guadalajara, Jal. CP 44630 Tels: 52 (33) 38173475 Tels: 52 (33) 38173798 jgalvan@usmcocpacifico.org

Aguascalientes Chapter Aguascalientes, Ags. Alejandro Vázquez Executive Director Av. Independencia 1602 Col. Fátima Aguascalientes, Ags. Tel.: (449) 914-6863 y (449) 153-3553 www.usmcocags.com.mx alejandro.vazquez@usmcocags. com.mx

Southwest Chapter Dallas, TX Josie Orosco Executive Director 901 Main Street, 44th. Floor Dallas, TX 75202 Tel: (214) 651-4300 and (817) 881-0264 Fax: (214) 747-1994 swusmx@netzero.com

Inter-American Chapter Miami, FL Susanna Werner Interim Executive Director 1441 Brickell Ave. Suite 1400 Miami, FL 33131 Tel: (305) 374-7401 Interamerican@usmcoc.org

Guanajuato Chapter León, Gto. Sergio Ponce López Executive Director Blvd. Campestre No. 1215, Int. 12 Col. Panorama León, Gto. 37160 Tel: (477) 779-5670 Fax: (477) 779-5671 splopez88@gmail.com

Golfo Chapter Veracruz, Ver. Jorge Alejandro Vega Executive Director Simon Bolivar no. 705. casi esquina con España. Despacho 3 Colonia Zaragoza C.P. 91910 Veracruz, Ver. México Tel: (229) 937-0598 Fax: (229) 100-3857 naftaforum@gmail.com

International Trade Development and Assistance Center Joe Chapa Executive Director 207 Mandalay Canal Irving, TX 75039 Tel: (406) 839-1796 jrchapa@usmcoc.org

Pacific Northwest Chapter Seattle, WA Jorge Madrazo Cuéllar President 15100 S.E. 38th Street, #728 Bellevue, WA 98006-1765 Tel: (206) 306-4881 jmadrazo@usmcocnw.org

Puebla Chapter Puebla, Pue. Vidaur Mora Executive Director 31 Poniente No. 4128 2-B Col. Reforma Sur Puebla, Pue. 72160 Tel: (222) 403-2908 Fax: (222) 249-2361 puebla@usmcoc.org www.usmcocpue.org

Valle de México Chapter México, D.F. Claudia Vidal Executive Director Av. Insurgentes Sur 1605 Torre Mural, Piso 25, Mod. 3 Col. San José Insurgentes Benito Juárez, 03900 México, D.F. Tel: (55) 5662-6103 Fax: (55) 5683-2700 c_vidal@usmcoc.org

Northeast Chapter New York, NY Alejandro Ramos Executive Director 1540 Broadway, Suite 1400 New York, NY. 10036-4086 Tel: (212) 471-4703 Fax: (212) 471-4701 alejandro@usmcocne.org

Las Vegas Chapter Las Vegas, NV. Carlos Olamendi President 10728 Royal Pine Ave. Las Vegas NV 89144 Tel: (310) 586-7901 Fax: (310) 586-7800 colamendi@gmail.com

Querétaro Chapter Querétaro, Qro. Marcela Soto Executive Director Isas y Asociados Contadores Públicos Rufino Tamayo # 2 Col. Pueblo Nuevo Querétaro, Qro. 76900 Tel: (442) 295-0272 msoto@usmcoc-qc.org.mx

Noreste Chapter Monterrey, N.L. Roberto Fuerte Executive Director Av. Fundidora No. 501. Edificio Cintermex P.B. Local 114 Col. Obrera Monterrey, N.L. 64010 Tel: (81) 8191-7800 rfuerte@usmcocmtymx.org rfuerte@gmail.com

The Woodlands - Gulf Coast Chapter Pete Garcia Executive Director 10077 Grogan’s Mill Road, Ste. 530 The Woodlands, TX 77380 713.854.1577 pete@chambergc.org

Mid-Atlantic Chapter Washington, D.C. Vacant Trade Representative 6800 Versar Center, Suite 450 Springfield, VA 22151 Tel: (703) 752-4752 Fax: (703) 642-1088 gerardo@usmcoc.org

Cancun Chapter Cancún, Q.R. Evelyn Pintado Cervera Executive Director Calle Chacá 19 Mz. 1 Sm.23, Cancún, Q.R. C.P. 77500 Tel. (998) 193-1260 Fax (998) 887-8848 evelyn.pintado@gmail.com

Michoacan Chapter Morelia, Mich. Nick Ortiz Presidente Melo 166-B Morelia Michoacan C.P. 58000 Tel: (443) 353-2927 usmcocmich@gmail.com

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CHAPTER OFFICES / OFICINAS DEL CAPĂ?TULO

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Investing in 2013

ast year, a variety of factors led by very loose global monetary conditions, helped propel risk assets higher with stocks around the world posting their strongest returns since 2009 as the MSCI EAFE Index of developed markets gained 17.4 percent and the SP500 Index 16.0 percent. Other major asset classes lagged stocks with investment grade corporate bonds returning 10.4 percent, gold 7.1 percent, long term U.S. treasurys 3.5 percent, and three-month t-bills checked in at a mere 0.1 percent. This means that, for the four years ending in 2012, on an annualized basis, the SP500 Index is up 14.6 percent while bonds (as represented by the Barclay’s Capital Aggregate Bond Index or Barclays Agg) are up 5.2 percent. This performance disparity is even more pronounced if you start the clock at the market bottom of March 9, 2009, with the returns of the SP500 and the Barclays Agg clocking in at 24.2 percent and 6.4 percent respectively.

OF INTEREST / DE INTERÉS

Make no mistake: we are in the fifth year of a bull market in stocks.

It also happens that, since the financial crisis of 2008, investors have been pulling money out of stocks and moving it to bonds so that most of them today find themselves in very over-weighted debt (sovereign in particular) with very low allocations to equities. Even hedge funds have been investing heavily in fixed income. The combination of most investors, positioning and the relative returns of stocks vs. bonds is causing a fair amount of pain as investors see what could have, should have, been, had they only stayed the course during 2008 and 2009. So what can we expect from financial markets in 2013? Our outlook decidedly favors equities over bonds for several reasons: 1. Central banks and policy makers around the world have in so many words promised to keep liquidity flowing.

2. The world will not enter into another global recession and global GDP growth will continue and accelerate modestly from 3.1 percent in 2012 to 3.3 percent in 2013 and 4.1 percent in 2014. 3. Europe’s sovereign debt problems are last year’s news. The strong policy response since last summer has not solved the long-term problem, but it has put it on the back burner for the next 12 to 24 months at least. 4. Shale (both in oil and gas) will emerge as one of the biggest themes of many years, especially in the U.S. Its most important effect is that it provides stability in oil prices because supply issues cause most energy crises. 5. The U.S. housing market will continue to recover. This is particularly significant because housing was the match that ignited the fuse of the financial crisis. 6. Corporate earnings growth will continue to accelerate and will force investors to finally capitulate and begin moving away from their significant overweight in bonds back to equities. There is no shortage of potential negatives on the horizon, of course. The most important one being the capacity for governments to create chaos because of their protracted, reactive, and politically-charged approach to problem solving. Both Europe and the U.S. have so far managed to arrive at eleventh hour, mostly incomplete, solutions and in the process, have managed to avoid bigger debacles. The biggest risk is that one of these days, they may blunder their way into a corner to which markets react very negatively. The next test will come soon as the U.S. deals with raising the debt ceiling. We expect that a partial fix for 6 to 12 months will emerge and this will give them enough time (and hopefully guts) to finally tackle it in a comprehensive way. ER NESTO R AMOS

Head of Equities. BMO Global Asset Management

How Mexico’s Labor Reform Will Impact Human Capital Taxation

· An increase in social security burden when outsourcing employees if the business doing the outsourcing does not comply with certain conditions to guarantee the employee’s equity and social security rights. · Companies that will be outsourcing should adopt policies limiting their liabilities to avoid double profit sharing when outsourcing employees in case the employees participate in the profit sharing of their original employer. · Under the new law, different ways of writing employment contracts can have an effect on hire and dismissal notices to be filed with social security.

· Tax procedures should be implemented to allow for part-time job contracts after the reform. · There is a new mandatory requirement for all employers to enroll in INFONACOT (National Fund to finance workers). To comply with this, we recommend establishing controls in payroll systems for calculating the related discounts and establishing controls when hiring employees with a credit on INFONACOT. This new obligation will be enforced as of December 2013. · The new law regulates Mexican employees’ rights when they work abroad under contracts established in Mexico in accordance with agreements between Mexican and foreigner governments. Tax laws should be modified in these cases. · Expenses incurred by employers for

complying with new training programs will increase deductions and reduce corporate income tax and flat tax impact. There is no impact if employers had previously paid for the training. · A new simplified procedure will accelerate the granting of certain social security benefits (e.g., the return of housing or retirement funds). · Formalization of jobs as a result of new rules to protect social security and other human rights could help collect more taxes. The new reform will impact taxation on companies differently. Additionally, some particular procedures should be implemented after a case by case analysis. If you need assistance, or have questions about the changes and how they may affect your business, please contact me at eibanez@mmc-mx.com. ELISA IBANEZ

MMC Human Capital Taxation

BRIEFS OF INTEREST / BREVES / DE INTERÉS

n analysis of how the new amendment to Labor Law in Mexico may impact human capital taxation identified these potential effects:

Strategic Planning:

The Importance of Choosing Your Export Strategy

OF INTEREST / DE INTERÉS

electing a method of entry into foreign markets is as important as choosing the right partner in life. Both situations involve careful planning and strategic thinking as well as some intuition. For most of us, our first significant relationship with another person happens more by chance than by planning. Similarly, the first export venture of most companies is typically more the result of coincidence than of thoughtful planning and strategy. But it doesn’t have to be that way. More likely than not there is a substantial foreign market for your product that warrants serious analysis and consideration for market entry. Here are some key aspects to keep in mind when choosing your export strategy.

Understand the different exporting options in existence. You can choose an indirect exporting method through an export trading company (ETC) or an export management corporation (EMC), or a more direct exporting approach through agents, distributors or a subsidiary. An ETC serves as an

intermediary that buys your product and resells it in a foreign country. An EMC serves as a manufacturer’s representative earning a commission on the sales. An alternative to exporting altogether is having production abroad, typically when manufacturing costs are lower abroad, and may include subcontracting, licensing or franchising. Consider your company’s unique characteristics. What is your company’s size and production capacity? What is your desired level of involvement in sales abroad? Do you want to produce a top-ofthe line product or a product at the lowest cost possible? If your company does not have the capacity to fill orders abroad, your export strategy will not be successful. Similarly, when choosing your partner in life, think about how you both are able to think and process things. If you are an over-achiever a laid-back person may not be the right partner for you. Consider logistics infrastructure. Have a clear understanding of the

levels of infrastructure in the importing country. The existence and quality of the infrastructure and the way things work abroad will have an impact in your decision to export directly or indirectly. Analyze beforehand the available methods of communication and transportation including distribution channels, roads, public utilities, banking, the court system and the quality of intellectual property rights protection. Evaluate the cultural characteristics of the country where you are exporting. Knowledge and respect for someone’s cultural values and attitudes is fundamental for successful relationships both in life and in business. Does your buyer come from a culture where they value individualism or collectivism? Is verbal or non-verbal communication prominent? Is being on time interpreted rigidly or flexibly? Finally, have standards when choosing who you work with. Choose manufacturers, suppliers, and buyers carefully. Treat this part as you would when hiring someone for a job. Ask questions. You would not just pick someone off the street to hire for a job. Trade consulting companies can help you make the right export strategy decision and select the right people to work with. CLAUDIA CARBALLAL-BENAGLIO President and CEO of Novo Global Trade

Latin America, a land of opportunities

“There is significant, untapped potential in the economic relationship between Latin America and USA. Fast growing demand for commodities has led to a significant increase in Latin America-U.S. trade which rose by a brisk 22 percent in the first half of 2011.” Total U.S.-Latin trade jumped to $373.5 billion, a new record. Mexico accounted for $224.1 billion, or nearly two thirds of the total exchange. Latin

America’s growing importance as a U.S. trade partner is a key component of this trend. Over the past decade, U.S. exports to South America have risen by 94 percent in dollar terms, to Central America by 76 percent, and to Mexico by 16 percent. The United States and Latin America have pursued trade liberalization through multilateral, regional, and bilateral negotiations. When developing countries grow, they create a larger middle class that typically increases the demand for imports of consumer goods. Latin America’s economy is growing. Whether you are thinking about importing or exporting to Latin America, you need the best freight forwarder to transport your products at low cost and in a timely manner, Posey International will get the job done.

Latin America is poised to become a more active player in the international arena and Posey International is ready to serve this market. Our global headquarters are located in Houston TX, with branches in Mexico City and Cali, Colombia, plus, our network of logistic experts operates in more than 200 cities in 50 countries around the globe. Join the adventurous; now is the time to get into this market and we are here to help! Being rich in land, agriculture, natural resources and culture, Latin America has a lot to offer to American companies and consumers.

For more information call Posey International Tel. (713) 672 1985 e-mail: info@posey-intl.com www.posey-intl.com

ADVERTORIAL / PUBLIREPORTAJE

f you are interested in a market with 560 million consumers, rich in natural resources and that hungry for technology and creative ideas/products/services, search no more; Latin America is the market to be. We are talking about 20 independent countries. In Latin America, the key economies in the region are expected to continue growing at a healthy 3.5-5 percent for the next four years.

Binational Meeting

Mexico 2012 & Awards Gala Dinner

â&#x20AC;&#x153;Mexico 2012: A Year of Political & Social Transitionâ&#x20AC;?

BINATIONAL EVENT / EVENTO BINACIONAL

The Binational Meeting & Awards Dinner, held annually by the U.S.-Mexico Chamber of Commerce, focused on the presidential elections that occurred in both the United States and Mexico in 2012. Every 12 years, presidential elections in both countries coincide and these occurrences are an opportunity for both countries to reassess their agendas regarding each other. The two-day event was held at the Four Seasons Hotel in Mexico City November 30 and December 1, 2012.

Welcoming remarks by Amb. Anthony Wayne, U.S. Ambassador to Mexico

During the awards ceremony, both outgoing Mexican Secretary of Tourism Gloria Guevara, and outgoing Mexican Secretary of the Economy Bruno Ferrari received the Chamber’s Buen Vecino (good neighbor) Award. The Chamber also honored Antonio Cuellar Salas, partner at Cuellar Salas & Cuellar Steffan, received a special recognition as a long-standing member. In remarks, Secretary Guevara said that tourism in Mexico had surpassed expectations due to an increase in tourists from Europe and the Far East and, in order, to continue growing, the new government should promote Mexico as a safe destination for tourists.

opics discussed during the two-day event included the social transition in the United States and Mexico. Both elected governments have emphasized the importance of the middle class for the future of their national economies. U.S. President Barack Obama wishes to reduce taxes on the middle classes while increasing taxes on millionaires and billionaires and President Peña Nieto wants to promote free market reforms to expand the middle class in Mexico to sustain economic growth.

business relations between the U.S. and Mexico. He also congratulated President and CEO of the U.S.-Mexico Chamber of Commerce Albert Zapanta for the sound businesses the USMCOC members operate.

During his address, Lozano expressed his assessment that the U.S. policy toward Mexico will be a continuation of the last four years under the Obama

Attending the meeting and gala were business executives, political leaders, and influential companies in the bilateral trade between Mexico and the United States. The annual event began with the inaugural welcome speech by Anthony Wayne, U.S. Ambassador to Mexico, in which he said: “Through this trade, our two countries don’t just share goods and services; we share values,” recognizing the importance of good Remarks by “Buen Vecino” Awardee Antonio Cuellar Stephan

BINATIONAL EVENT / EVENTO BINACIONAL

Tourism Secretary Gloria Guevara receiving the “Buen Vecino” Award from USMCOC President & CEO, Albert Zapanta

On Friday, December 1, the day began with a breakfast meeting with a discussion of the new government in Mexico, formed by the election of President Enrique Peña Nieto and the newly-elected Congress. The conversation was led by Eric Rojo, Coordinator of the Security Program for the Center for Dialogue and Analysis on North America (ITESMCEDAN). The keynote speaker was Senator Javier Lozano, Secretary of the Labor Commission in Mexico’s Senate.

administration. On the other hand, the Mexican approach toward the violence in the northern border might shift under the new administration of President Nieto. The day’s second panel, Mexico’s Economic Forecast 2013, presented projections by experts from the financial sector: Gabriel Lozano, Chief Mexico Economist at JP Morgan; Ricardo Haneine, Partner and Vice President of AT Kearney; and Felix Boni, Director of Analysis at HR Ratings from Mexico. Lozano talked about the competitive advantage of Mexico against other manufacturers like China, comparing the costs of importing goods to the United States from China and Mexico, asserting that Mexico remains the best choice for the U.S. since the price of shipping a freight car from China is $5,000, while the price of letting a truck pass the same freight from Mexico is $3,000, making Mexico the main manufacturing hub of the U.S. The third and final panel addressed Mexico’s labor reform, focusing on the effects U.S and Mexican employers would face with the passing of the new reform by the Mexican

José Antonio Torre, Undersecretary of Competitiveness, receiving the “Buen Vecino Award” on behalf of Bruno Ferrari, Secretary of the Economy

Congress. The panel was conducted by Eduardo Garcia, Director General of CONCANACO and Oscar de la Vega, Manager Shareholder of Littler. De la Vega stressed the need for a labor reform in Mexico that overcomes the growing informal economy and increases in unemployment among

the young adult population. He also expressed his concerns about the lack of social benefits, such as social security, for the informal labor force. From the Awards Gala Dinner to the departure of the Chamber’s members, the Binational Meeting & Award Gala Dinner 2012 was a great success. We look forward to seeing you in late May at our Annual Conference, Good Neighbor Awards and Binational Board of Directors Meeting in Washington, D.C.

UNITED STATES-MEXICO CHAMBER OF COMMERCE CÁMARA DE COMERCIO MÉXICO-ESTADOS UNIDOS USMCOC Thanks its Sponsors for Supporting the:

Binational Meeting Mexico 2012 & Awards Gala Dinner

BINATIONAL EVENT / EVENTO BINACIONAL

“Mexico 2012: A Year of Political & Social Transition”

Keynote remarks by Senator Javier Lozano, Secretary of the Labor Commission, Mexico’s Senate

Mexico’s Labor Reform Panel. (From left to right) Moderator Alejandro Ramos, Executive Director of the USMCOC Northeast Chapter; Eduardo Garcia, Director General, CONCANACO and Oscar de la Vega, Manager Shareholder, Littler.

BINATIONAL EVENT / EVENTO BINACIONAL

USMCOC

Special Delegation for Mexico’s Presidential Inauguration

uring the binational meeting, Mexico 2012: A Year of Political & Social Transition, the U.S.-Mexico Chamber of Commerce (USMCOC) hosted a special delegation that attended activities related to President-elect Enrique Peña Nieto’s inauguration on December 1, 2012. The delegation was comprised of the USMCOC binational board of directors and sponsors, as well as four members of the U.S. Congress, including Rep. Pete Sessions (32nd District-TX); Rep. Michael McCaul (10th District -TX); Rep. Henry Cuellar (28th District-TX) and Rep. Jared Polis (2nd District-CO). The event started with a special dinner at the Four Seasons Hotel welcoming the U.S. Congressional delegation on Friday, November 30. The evening was highlighted by the participation of Secretary Idelfonso Guajardo, who, until that morning, served as Economic Policy Coordinator for President-elect Enrique Peña Nieto’s transition team. That afternoon, Guajardo was appointed Mexican Secretary of the Economy by the president-elect.

DELEGATION EVENT

On Saturday, December 1, Ambassador Anthony Wayne met with the USMCOC President and CEO Albert Zapanta, the binational board members, and the

Mexico’s Secretary of Economy. Ildefonso Guajardo and USMCOC President & CEO, Albert Zapanta

U.S. Congressional delegation where he delivered welcoming remarks: “Now that both Mexico and the United States have emerged from our elections, we look forward to a continued close and productive partnership with Mexico under the leadership of President Enrique Peña Nieto.” The audience also heard remarks by Congressman Pete Sessions, Chairman of the House Rules Committee, who spoke as the head of Congressional delegation and expressed his encouragement about Mexico’s movement toward security and economic prosperity following meetings with newly elected President Enrique Pena Nieto and members of his cabinet. After breakfast, the delegation was split into two groups. The first group headed to San Lazaro Palace Chamber of Deputies, to witness Enrique Pena Nieto take the oath of office as Mexico’s new president before an assembly of 479 deputies, 123 senators, and several guests, including U.S. Vice President Joe Biden, Spain’s Prince Felipe, Canadian Governor General David Johnston, and USMCOC board members Tony Jimenez, President & CEO, MicroTech; Louis Escareño, Director, Public and Governmental Affairs, Duty Free Americas; Ricardo

USMCOC Binational Board members with PRI Congresswomen at the entrance of San Lázaro Palace Chamber of Deputies after President Enrique Pena Nieto took the oath of office. USMCOC members from left to right: Eduardo Gallástegui, Gallástegui y Lozano, S.C.; José García Torres, USMCOC Mexico City Chapter; Alonso Quintana, Empresas ICA; Juan VegaNaviera Integral; Ricardo Aizenman, Citibank, NA; Tony Jimenez, MicroTech; Louis Escareño, Duty Free Americas; and Chris Wallace, Greater Irving-Las Colinas Chamber of Commerce.

Aizenman, Senior Vice President for Latin America & Mexico, Citibank, NA; José Zozaya, President and Executive Representative, Kansas City Southern de Mexico; Juan Vega, Director General, Naviera Integral; Eduardo Gallástegui , Socio Fundador, Gallástegui y Lozano, S.C.; Javier Medina, Director de Enlace Legislativo, Grupo Salinas; and Alonso Quintana, Director General, Empresas ICA. Meanwhile, the second group went to Mexico’s National Palace, where the delegation was able to listen to the new President’s inaugural speech. The day culminated with a private dinner at Hacienda Los Morales co-hosted by the USMCOC and Senator Ninfa Salinas, Chair of the Environmental Committee and member of the Foreign Relations Committee. Roberta Jacobson, U.S. Assistant Secretary of State for Western Hemisphere Affairs and Laura Dogu, Deputy Chief of Mission of the U.S. Embassy, attended as special guests along with the U.S. Congressional Delegation and USMCOC board members. Both Senator Salinas and the U.S. Congressional Delegation expressed their commitment to continue to work together on the advancement of the U.S.Mexico relationship.

Congressman Pete Sessions, (32nd District-TX); Congressman Jared Polis, (2nd District-CO); USMCOC President & CEO, Al Zapanta; Mexico’s Secretary of Economy, Ildefonso Guajardo; Congressman Michael McCaul, (10th District -TX) and Congressman Henry Cuellar, (28th District-TX).

XVI Annual

U.S.-Mexico Congressional Border Issues Conference 16-year tenure as a co-chairman of the conference. The conference opened the next day at the Rayburn House Office Building. Opening remarks were provided by Reps. Reyes and Cuellar who noted that, although the border region has experienced some improvements, these areas still must address many challenges to improve the life and economy of the area. ENERGY, WATER AND SUSTAINABILITY

Congressman Silvestre Reyes, Senator John Cornyn and Al Zapanta President and CEO, USMCOC.

BORDER ISSUES

Sixteen years ago, the U.S.-Mexico Chamber of Commerce (USMCOC), in collaboration with Congressman Silvestre Reyes (D-TX), convened the first U.S.-Mexico Congressional Border Issues Conference on Capitol Hill. The conference provides a public forum where issues relating to security, environment, health, water, tourism, workforce and infrastructure at the southwest border can be discussed openly with decision makers from the two nations’ capitals and the border region.

On September 19-20, 2012, the XVI Annual U.S.-Mexico Congressional Border Issues Conference was again held in Washington, D.C. and co-sponsored by USMCOC. Also sponsoring were the offices of Congressman Silvestre Reyes (D-TX), Congressman Michael McCaul (R-TX), Congressman Henry Cuellar (D-TX), and the Congressional Border

Caucus. More than 280 guests were in attendance. The conference was kicked off by a reception at the Committee on Veteran’s Affairs to honor Alan Bersin, Assistant Secretary of International Affairs and Chief Diplomatic Officer, Department of Homeland Security (DHS). Bersin was presented with the Freedom Eagle Award for his leadership favoring U.S.-Mexico relations and for his past contributions to the U.S.-Mexico Border as Commissioner of U.S. Customs and Border Protection. USMCOC also honored Juan Sabines, Governor of Chiapas, for his work in favor of the social and economic betterment of Mexico’s southern border. Congressman Reyes was recognized for his leadership and contributions toward the development and improvement of U.S.-Mexico border relations, and for his

Congresswoman Grace Napolitano, (DCA 32), convened the morning panel on energy, water and sustainability. Steve Molina from SNR Denton moderated the panel which was comprised of Matthew Rooney, Deputy Assistant Secretary, Bureau of Western Hemisphere Affairs, USDOS; Ed Drusina, Commissioner, International Boundary and Water Commission; Rafael Escandon, Director of Project Administration and Technical Services, NADbank; George Liparidis, President and CEO, Sempra International; and Susanna Werner, Advisor, Border Energy Forum. One of the most significant topics introduced was the severe drought in the southwest, made more critical by the growing population in the area. Consequently, several U.S. and Mexican agencies dealing primarily with water are conducting a study to find ways to combat the water shortage and how to share the scarce resource. TRADE, COMMERCE AND INFRASTRUCTURE ALONG THE U.S.-MEXICO BORDER Participants on the second panel, Trade, Commerce and Infrastructure along the U.S.-Mexico Border, were Rep. Francisco “Quico” Canseco (R-TX 23) and panelists Walter Bastian, Deputy Assistant Secretary of Commerce for

Congressman Michael McCaul, Eric Olson Associate Director, Mexico Institute, Woodrow Wilson International Center, William R. Brownfield, Assistant Secretary for the Bureau of International Narcotics and Law Enforcement Affairs, U.S. Department of State and Marilyn Quagliotti, Deputy Director for Supply Reduction, Office of National Drug Control Policy.

the Western Hemisphere, USDOC; Carlos Guzman, Director General, PROMEXICO; Kevin K. McAleenan, Acting Assistant Commissioner, CBP Office of Field Operations; Rachel M. Poynter, Coordinator, U.S.-Mexico Border Affairs, USDOS; John Chrisos, Vice President of North American Sales, AS&E; Miguel Perez, Director of Border Crossing Operations, Ryder Systems; Erik Lee, Associate Director, North American Center for Transborder Studies at Arizona State University; and Erika Benson, partner, Gardere’s Government Affairs Practice Group, who also moderated the panel. The panel emphasized a need for shorter waiting times at the ports of entry to facilitate more trade and jobs on both sides of the border. “We’re hopeful that for conferences like this and other opportunities to address issues like port staffing and infrastructure support, that we’ll convince enough members that have ties to the products that are crossing the border to support that so we continue with that effort,” Reyes said at the end of the panel. Border security was the primary topic at the conference luncheon. Texas Senator John Cornyn spoke about the costs of patrolling the border and

Erika Benson, Walter Bastian, Deputy Assistant Secretary of Commerce for the Western Hemisphere, U.S. Department of Commerce, Carlos Guzman, Director General, PROMEXICO, Kevin K. McAleenan, Acting Assistant Commissioner, CBP Office of Field Operations, John Chrisos, Vice President of North American Sales, AS&E, Rachel M. Poynter, Coordinator, U.S.-Mexico Border Affairs, U.S. Department of State, Miguel Perez, Director of Border Crossing Operations, Ryder Systems and Erik Lee, Associate Director, North American Center for Transborder Studies at ASU.

the government’s cooperation with the public sector in dealing with the issues along the 2,000-mile long border. He noted that more than six million Americans owe their jobs to crossborder trade. U.S.-MEXICO SECURITY COOPERATION AND THE MERIDA INITIATIVE Following the luncheon, the third and final panel was centered on U.S.-Mexico Security Cooperation and the Merida Initiative. The panel moderator was Eric Olson, Associate Director, Mexico Institute, Woodrow Wilson International Center. The panel consisted of William Brownfield, Assistant Secretary for the Bureau of International Narcotics and Law Enforcement Affairs, USDOS; Marilyn Quagliotti, Deputy Director for Supply Reduction, Office of National Drug Control Policy; Thomas Winkowski, Acting Chief Operation Officer, USCBP; and Elías Scheker Da Silva, Assistant Economist, REMI. Participants discussed positive developments in border security. They said that decreasing violence along the U.S.-Mexico border should strengthen economic ties and the Merida Initiative. Brownfield stated that, because of the

Merida Initiative, there are stronger legal frameworks on both sides of the border, larger and better-trained specialized security forces and improved abilities to incarcerate those who are convicted of crimes and better ability to detect the movement of drugs, arms and cash, whether they are moving north or south. Feedback from presenters and participants indicated that the XVI Annual U.S. - Mexico Congressional Border Issues Conference was a complete success.

UNITED STATES-MEXICO CHAMBER OF COMMERCE CÁMARA DE COMERCIO MÉXICO-ESTADOS UNIDOS USMCOC Thanks its Sponsors for Supporting the:

“XVI Annual U.S.-Mexico Congressional Border Issues Conference”

BORDER ISSUES

Congressman Henry Cuellar

Rachel M. Poynter, Coordinator, U.S.-Mexico Border Affairs, U.S. Department of State , Miguel Perez, Director of Border Crossing Operations, Ryder Systems and Erik Lee, Associate Director, North American Center for Transborder Studies at ASU.

Fiesta Americana 2013

Brings Together Leaders from the Americas to Celebrate President Obama’s Inauguration

government officials from both the U.S. and the Americas to celebrate the inauguration, Fiesta Americana 2013 echoed the message of strengthening the relationship between the Americas and the U.S. Hispanic community.

FIESTA AMERICANA/ FIESTA AMERICANA

The election of the president of the United States of America is an occasion of great international impact. No region feels this more than Mexico and countries in Central and South America that share a close relationship with the United States. The region is made up of thirty-four democracies with close to one billion people. The amity is reflected in increasing trade among the partners totaling $1.5 trillion and free trade agreements signed in the last few years that include Central America, Dominican Republic, Perú, Colombia and Panamá.

At the center of the Western Hemisphere is the Organization of American States (OAS), an institution that “brings together all 35 independent states of the Americas and constitutes the main political, judicial, and social governmental forum in the Hemisphere.” (www.oas.org) In addition to representation in the OAS, these countries are also represented in the U.S. by ambassadors, and representatives to multilateral organizations such as the InterAmerican Development Bank, World Bank and International Monetary Fund. Through this network of organizations, countries in the Western Hemisphere are well connected to each other and to the United States. Representatives of many of these

countries recently gathered at the historic OAS building in Washington, D.C. to celebrate the inauguration of U.S. President Barack Obama and Vice President Joe Biden as they began their second terms. The event, Fiesta Americana 2013, hosted on January 18, 2013 by H.E. Ambassador Joel Antonio Hernández García, Ambassador of Mexico to the OAS, was the first of many events leading up to Inauguration Day on Monday, January 21. Fiesta Americana 2013 was the third such observance of a U.S. presidential inauguration. Previous Fiestas Americana were held in 2001 and 2005. Since beginning his second term in office, President Obama has sent clear indications that he plans to work closely with the countries of the Western Hemisphere and the U.S. Hispanic community. By bringing together Hispanic and business leaders and

Several multilateral organizations participated as co-hosts of the event, including the U.S.-Mexico Cultural and Educational Foundation, U.S.-Panama Business Council, Ibero American Business Council, Hispanicus, National Hispanic Leadership Agenda, Greater America Business Coalition, U.S.Colombia Business Partnership, Minority Business Roundtable, WDCN - La Nueva 87.7 FM, and Washington Hispanic. Fiesta Americana 2013 was only the first of many events held throughout the weekend. Organizers also hosted a private VIP reception to recognize sponsors and Hispanic Congressional members, including Hilda Solis, U.S. Secretary of Labor, who received a special recognition for her tenure as the 25th U.S. Secretary of Labor (2009-2013). Jose Miguel Insulza, Secretary General of the OAS delivered welcoming remarks. Also in attendance were Congressman Pete Sessions (32ndTX); Rodolfo Sabonge, Vice President of the Panama Canal Port Authority; Commissioner Mario Cordero, Federal Maritime Commission; Ken Cuccinelli, Attorney General, State of Virginia; and Walter Tejada, Chairman, Arlington County Board.

UNITED STATES-MEXICO CHAMBER OF COMMERCE / CÁMARA DE COMERCIO MÉXICO-ESTADOS UNIDOS USMCOC Thanks its Sponsors for Supporting the:

“XVI Annual U.S.-Mexico Congressional Border Issues Conference”

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It Is Time to Move Mexico Forward ENRIQUE PEÑA NIETO

“Mexico has entered a new stage. By majority vote of Mexicans on December 1, 2012, I assumed the position of President of the United States of Mexico. That day, at the National Palace, a symbol of the history and republican life of Mexico, I offered my first message to the nation. I presented the five main goals of my administration for the transformation of Mexico.” Enrique Peña Nieto. President of the United Mexican States

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he first goal of my administration is to achieve peace in Mexico and to place its citizens and their families at the center of our national security policy. We shall achieve this with a state policy for security and justice for Mexicans, in which authorities of every type and level shall work in tight coordination. The second goal is to work to attain an inclusive Mexico that combats poverty and closes the gap of inequality that divides Mexicans.

The third goal is to achieve quality in education for all Mexicans. We want to form individuals with the aptitude, knowledge and innovative capacity that can successfully compete in a global context. The fourth goal consists of achieving a prosperous Mexico where competition is fostered in all areas, credit levels are increased to finance strategic areas, and where a formal economy is promoted, in addition to exploiting resources in a sustainable manner, adding value to domestic products and putting them within reach of all Mexicans. The fifth goal is to assume a role of global responsibility with a proactive role and broad leadership in the world.

In this manner, freedom will be defended, promoting justice and a more sustainable world in the 21st century. Also on the day I became president, during my swearing-in, I announced my first presidential directives: 1. I instructed the Secretary of the Treasury, Secretary of Social Development, Secretary of Education, and the Secretary of Health to create a national program for the prevention of crime, as an integrated effort of the state to reconstruct the social fabric. 2. I instructed the Judicial Council of the Executive Branch to desist from the constitutional controversy relating to the General Law of Victims, and to publish it as it was originally approved by Congress. This took effect on January 9. 3. An initiative for a constitutional amendment shall be presented which allows a single penal code and a separate Code of Civil Procedures, each unique and with national application. 4. I instructed the Secretary of Social Development to put in place, during the first sixty days of my administration, the

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National Crusade against Hunger, inviting all who wish to contribute their time and resources to this noble cause to become involved.

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5. I instructed the Secretary of Social Development and the Secretary of the Treasury to create a life insurance program for female heads of household. Through this program, female heads of households shall have the peace of mind that, in the event they pass prematurely, the government shall provide economic support to their children until they complete their university studies.

6. I instructed the Secretary of Social Development and the Secretary of the Treasury to include a budget entry for the 2013 fiscal year that broadens the “70 and More” program with the goal that all Mexicans over the age of 65 receive a pension. 7. An amendment to Article 3 of the Constitution of Mexico was presented with regard to education which, in due course, will be complemented with a subsequent amendment to the General Law of Education. The Constitutional amendment states that, effective immediately, there shall be

no life-long or hereditary positions in the national educational system. This amendment also includes the creation of a national system of educational evaluation, which shall identify in an objective an impartial manner, the factors needed to improve teachers, directors, supervisors, schools and authorities. In addition, I instructed the Secretary of Public Education to request that the National Institute for Statistics and Geography create a census of schools, teachers and alumni, which shall serve as the database necessary to achieve a more efficient and transparent operation of the educational system. 8. I instructed the Secretary of Communication and Transportation to accelerate the proposal of the 2012-2018 National Program for Infrastructure and Transportation that shall include projects promised to Mexicans that increase the infrastructure relating to highways, railways and ports in the country. 9. I ordered the head of the Secretary of Communication and Transportation to initiate the construction of several rail lines, as well as to improve the transit conditions in cities including

Monterrey, the metropolitan area of Mexico City and Guadalajara. This year, the construction of the trans-peninsular train will begin, connecting important tourist destinations and productive centers in the Yucatan Peninsula. 10. Soon, I will submit a Constitutional initiative to recognize the right to access broadband, as well as another series of amendments that foster competition in telephone and data services, television and radio. To achieve this goal, my administration shall issue a request for tender for two new open television channels. 11. I shall also submit to the national Congress a project for a national law of Fiscal Responsibility and Public Debt. This law shall bring order to the indebtedness of state governments. 12. My administration submitted a budget with a zero deficit for 2013 for congressional consideration. Its expedited approval demonstrates that the country’s public finances shall continue to be a central pillar driving the national economy.

As the president of Mexico, I am committed to do my part. I shall favor meetings, unity and constructive and purposeful dialogue. The collective good compels us to build now, without delay, basic agreements to undertake the transformation of Mexico. For these reasons, I, and the executive branch,

celebrate that the principal political forces of Mexico have executed an agreement that provides stability, certainty and direction to our nation, motivating unity within the plurality. The Pact for Mexico includes five essential agreements. First, to transform Mexico into a society based on legal rights. This requires that all Mexicans exercise the rights granted by the Constitution. Second, foster economic growth, employment and competition. Third, achieve security and justice; that is, make the desire and right of all Mexicans to live in a peaceful and tranquil environment a reality. Fourth, increase and guaranty

AN INTERVIEW WITH ENRIQUE PEÑA NIETO FOR THE U.S.-MEXICO CHAMBER OF COMMERCE USMCOC: Mr. President, now that the Office of the Interior has been reorganized, how will services, such as public safety, be integrated and operated? What policy changes and priorities are implied under this new structure? EPN: According to our Constitution, public safety is a shared responsibility between the three branches of our government. The recent amendment to the Organic Law of the Federal Public Administration establishes that, from a federal perspective, the Office of the Interior is the responsible agency. This same law creates the new position of National Security Commissioner to assist the Secretary of the Interior in this new area. The federal police and the national gendarmerie will report to this new national commission. The latter will be responsible for strengthening the presence of the state in municipalities with the greatest institutional weaknesses, as well as strategic points such as ports, airports and borders. It shall be a police with military discipline and a high level of training under civilian command. In terms of policy changes, last December I presented the new State Policy for Safety and Justice of all Mexicans, with six focal points:

· Planning: Will allow us to assign responsibilities and specific deadlines for each government institution, as well as for the local governments. · Prevention: We are going to focus institutional efforts on addressing the causes of criminal delinquency, not only on the consequences. A fund for the prevention of crimes will be created that will allow improvements to urban environments, promote social businesses and foster responsible and united citizens. · Protection and Respect of Human Rights: A National Program for Human Rights will be put in place to strengthen all related government areas. · Coordination: The current administration shall strengthen and ensure the collaboration among its agencies, as well as with state authorities, those of the federal district and of municipalities. To achieve greater efficiency, the national territory shall be divided into five operational regions. · Institutional Transformation: The success of this new state policy requires a structural change in two areas: the police and the administration of justice. · Evaluation and Feedback: Each act considered shall be permanently evaluated by the people and by the authorities, with clear indicators, which will be quantifiable and transparent.

transparency, accountability and the fight against corruption. And fifth, perfect the conditions for democratic governance. I believe that with these steps, we shall begin as a country to generate the conditions necessary to realign Mexico’s path to achieve an integral and positive transformation of our country. It is time to move Mexico forward. I invite all Mexicans to be a part of this great evolution of our country. Today we have the historic opportunity to project a different Mexico, to convert it into the power it deserves to be and that it has decided to become.

USMCOC: In the area of energy, what types of private sector investment opportunities will be available for different energy sources--hydrocarbons, electricity, natural gas, and renewables--as well as concessions by and partnerships in projects with PEMEX and CFE? EPN: To transform the energy industry in Mexico, significant amendments with respect to the production of hydrocarbons and power generation are required. Likewise, it is necessary to promote the use of clean energy and renewables--air, solar and geothermal, among others--for which our country in is a privileged position. With the goal that our energy sector becomes a real source of growth, it is necessary to design and implement innovative mechanisms and partnerships with private industry that will allow it to evolve; however, it must be clear that the state will not give up the property or the management or ownership of its resources. The energy amendment seeks to allow private capital, both domestic and foreign, in the areas of exploration and production, with the goal of allowing the government and the business community to assume and share more risk than allowed under the current institutional framework. In the area of refining, for example, more private investment must be allowed. In this, as with other areas, the capability of the private sector must be used so that

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13. I issued a decree that establishes measures of austerity and fiscal discipline with regard to public spending. We are committed to rationing current expenses and designating more resources for investment in public works, programs and projects that will directly benefit the population.

the state can release public resources and utilize them in social programs, or in the construction and operation of universities and hospitals.

public, social and private sectors. Finally, contributing to the orderly growth of rural townships and populated areas while protecting public access areas, ejido and small properties.

This modernizing project requires, of course, the buy-in of all political stakeholders. It is important to identify the features of each region, to utilize the land Although there are various positions in an intelligent manner. on this issue, in the Pact for It is necessary to make Mexico, the country’s main “Mexico production in agricultural political groups have shown has an excellent centers more readily an important enthusiasm opportunity to push available to cities, the for transformation and farming development reform. We must take and the great potential it principal consumers of these goods. At the same advantage of this situation offers the country due time, the real value of land to achieve the agreements to the advantages must be protected to end that will allow us to of its geographic speculation. The objective is advance in the right direction location.” to change the face of poverty and make Mexico an energy in rural areas from its historical powerhouse. segregated place lacking in opportunities. We will achieve this with a just, productive, USMCOC: What are the priorities profitable and sustainable farmland. for Mexican farming and the security of the food supply in With regard to key topics on the Mexico? What incentives will commercial agenda with the United States, be available for agricultural such as tomatoes, eggs and chicken, I businesses and what strategies am convinced that we must act in good will be put in place to resolve faith and within the legal framework the commercial agenda with that governs these exchanges. For the the United States with regard to resolution of controversies, we shall act products such as tomatoes, eggs with pragmatism, seeking fair agreements and chicken? which are mutually beneficial. Only in EPN: This administration is committed extreme cases, in the event that the parties to working in a coordinated manner are not able to reach an agreement, will with social and farming organizations, it be necessary to seek recourse before an state and municipal authorities, and authority capable of resolving conflicts. with businessmen in the agricultural sector, in order to provide the greatest USMCOC: What is the strategy of development opportunities to those who this administration with regard to matters relating to the northern make their living from farming. border with the United States Mexico has an excellent opportunity to and the southern border with push farming development and the great Guatemala? potential it offers the country due to the advantages of its geographic location. EPN: The United States is our main To achieve this, diverse actions have commercial and investment partner. been set in motion: the most recent is Nevertheless, we desire further integration the transformation of the office of the with the United States. It is necessary to Secretary of Agricultural Reform into move from a commercial integration to a a new office of Agriculture, Territorial productive integration. To build a more and Urban Development. The functions prosperous future for both countries, we of this new office include empowering must continue to strengthen and expand agricultural development in a peaceful our economic, cultural and social ties. It is environment and in harmony with the a mistake to limit our bilateral relationship environment; promoting housing and to drug trafficking and security. Our mutual urban development in the country with interests are broader and more complex special consideration given to access than to simply limit them to those two to water; and planning for regional areas. Fortunately, the United States thinks development with infrastructure and the same way. When I met with President equipment projects. Success will result Obama a few days before my inauguration, from the collaboration among the we spoke precisely about the best way to

broaden the bilateral agenda In favor of regional prosperity and competition. As to the southern border, the topic of security is also important; however, the problem must not be addressed only through force. It also requires the use of intelligence, sharing information between countries and, above all, focusing on constructing a more orderly, safe and modern border. In this regard, we have a unified vision with economic, security and human rights components. USMCOC: What are the strategies to improve productivity in Mexico and, at the same time, promote greater competition and participation by other economic factors in key sectors of the country? EPN: Competition is a necessary factor for the innovation and growth of the economy. Toward this end, and in cooperation with various political groups in the country, this administration will push important amendments that relate to competition that will allow Mexicans to enjoy better quality products at a better price. Last year, progress was achieved by strengthening the Federal Commission on Competition with regard to monopolistic practices by amending the Law on Economic Competition and the internal procedural law that governs that commission. Now, we want to go further. This is why, even before my inauguration, I announced my administration’s plan to make competition a state policy. An important part of this includes creating courts specifically created to facilitate progress in the fight against the monopolistic practices and afford businesses full legal certainty. We will also push structural changes to foster competition in the country. We want to attract more capital to support economic growth that is consistent with the country’s true potential. The recent Pact for Mexico includes a series of agreements relating to economic growth, employment and competition that allow progress in these areas. We want to improve our products so that Mexican goods that are exported are of high quality and strengthen our global presence. USMCOC: In which areas will projects and public works focus on

the development of infrastructure and transportation?

EPN: We must invest in infrastructure to boost the regional development and strengthen the presence of Mexican products in the global market. As a country that exports products and merchandise at more than $1 billion per day, and being a country with very rich tourism, it is logical to dedicate our efforts to those areas. Infrastructure is a vital component to achieve these goals. I want to make Mexico a prominent location for the safe, secure and efficient transportation of our exports and goods that are consumed domestically. This requires significant investment by both the private and public sectors in strategic projects that create highways and roads, cargo railroads, world class shipping ports and airports. As for tourism, together with the private sector, we shall obtain increased investment in communications; develop the infrastructure necessary to not only better connect our tourist destinations to each other, but to the principal cities in Mexico and the world. USMCOC: What policies and incentives will be developed to aid innovation and assist entrepreneurs and small and midsized businesses?

With the formation of this institute, a new policy regarding entrepreneurs and small and medium-sized businesses is outlined. The goal is to consolidate entrepreneurialism. Specifically, we seek to support high impact entrepreneurial activities based on innovation not only in technology development projects, but also those focused on resolving the most sensitive social problems in Mexico. The intent is clear: to guaranty that the Mexican entrepreneurial and innovative spirit finds the appropriate conditions needed to develop its creative and business potential. In this effort, we look to shepherd domestic business toward excellence in production of goods and

services leading to increasing value and generating high paying jobs. To accomplish these goals, the National Entrepreneurial Institute will have the following responsibilities: 1. To generate the appropriate conditions necessary for the development and sustainable growth of micro-,small- and medium-sized businesses. The institute shall coordinate national policies to develop and support entrepreneurs and businesses of all sizes, and to assure the existence of an appropriate environment in which the creative capacity can prosper and be consolidated. 2. Infuse a new entrepreneurial culture into Mexican society. The new National Network of the Entrepreneur and the

National Observatory for the Entrepreneur will be created to communicate and share international best practices and success stories. 3. Boost public management oriented toward the success of Mexican business projects to achieve an efficient connection between entrepreneurial initiatives, the needs of the marketplace and the support offered by the State. With the priority that the administration will give to the innovative spirit in micro and small businesses, I am convinced that we are at the threshold of a new era for national development which will make this the administration for those entrepreneurs and businesses. The government will be an ally and facilitator of the realization of the ideas of thousands of innovative Mexicans.

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EPN: One of the most important actions we have taken in this area is the recently created National Institute for the Entrepreneur, the result of a commitment I made to the private sector.

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MEXICO’S PENSION FUND SYSTEM PRESENTATION: RECENT DEVELOPMENTS AND REGULATORY FRAMEWORK

n Friday, October 19, 2012, BNY Mellon hosted the third annual luncheon to discuss Regulation and Supervision of Mexico’s Pension Fund System. The keynote speaker was Pedro Ordorica Leñero, President of the Mexican Pension Fund System Commission (CONSAR).

Mexico reformed its pension system in 1997, transforming it from a payas-you-go (PAYG) defined benefit (DB) structure to a fully funded, private and mandatory defined contribution (DC) structure. Ordorica explained that over the past ten years, assets under management (AUM) of Mexican pension funds have grown at an exceptionally high rate of 19.64 percent annually, thus becoming increasingly significant.

market with a developed structure and more competition, thus contributing to Mexico’s attractiveness on a global scale. Recent changes in Mexico’s pension system are promoting portfolio diversification by enhancing market participation and accessing complex asset classes. In recent years, the funds have significantly increased their potential exposure to international markets (up

to 20 percent of total assets)—especially foreign equity, nearly doubling to 12.8 percent from only 6.5 percent two years ago—the U.S. being the primary destination. Investments in eligible foreign currencies are limited to 30 percent of total assets. The pension funds are now able to participate in domestic private equity offerings, been Development Capital Certificates (CKDs) the vehicle through which pension funds may invest in this asset class. Through corporate bonds and structured securities (including infrastructure CKDs), Mexican pension funds have participated in the financing of the country’s infrastructure sector with $14.4 billion, representing 22.46 percent of total outstanding Mexican infrastructure-linked securities. In addition, initial public offerings (IPOs) are now permissible investments. To conclude, Ordorica identified various areas of business opportunities in Mexico in this sector, including outsourcing, financial training and information technology enhancements. Additionally, he stated that the CONSAR continually collaborates with the investment community to resolve certain regulatory constraints and to adapt its rules per the market.

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As of September 2012, total AUM had reached $144 billion. These assets are managed by 13 Retirement Fund Administrators (AFOREs), who are responsible for managing individual accounts and investing savings in the pension funds, Specialized Retirement Investment Entities (SIEFOREs).

The Retirement Savings System has been crucial in the development of the national financial markets by fostering depth, liquidity and stability, as well as given way to a more efficient

Pedro Ordorica L., President of CONSAR

MEXICO OR BRAZIL: TWO DISTINCT ECONOMIC MODELS

n December 12, 2012, the Northeast Chapter and the BrazilianAmerican Chamber of Commerce in New York co-organized the panel discussion “Mexico or Brazil: Two Distinct Economic Models”. The event was hosted by Kirkland & Ellis, with Thomson Reuters as a co-sponsor.

A panel moderated by Paulo Vieira da Cunha (Tandem Global Partners), featured distinguished research analysts: Benito Berber (Nomura Securities); Hari N. Hariharan (NWI Management LP); Mauro Leos (Moody’s Investor Services); and Tony Volpon (Nomura Securities). Vieira da Cunha launched the discussion

with a brief introduction of the major similarities and differences between Latin America’s two largest economies over the course of history. From European imperialism to oil becoming an integral component of their economies, to the debt crises, the economies of Brazil and Mexico have been compared and contrasted for quite some time. A key topic of discussion was a recent research report written by panelists Volpon and Berber. They project that Mexico would grow at an average rate of 4.25 percent to 4.75 percent during the next ten years, while Brazilian growth would average 2.75 percent to 3.25 percent. If this forecast proves accurate, and if the positive economic growth trend continues over the coming decade, Mexico’s economy would be set to surpass Brazil’s by 2022.

Just a few years ago, Mexico was mired in sluggish growth and Brazil was the undisputed superstar of Latin America. A significant explanation for their divergent fortunes was China: Brazilian growth was being boosted by Chinese commodity demand as Mexican growth was hampered by Chinese labor competition. As such, the world’s largest country was voraciously consuming Brazilian exports while its domestic labor costs were much lower than those of Mexico. However, over the past decade, as indicated by Berber, Chinese labor costs have been rising, and Mexico’s manufacturing sector has become more competitive. In 2002, the Chinese-Mexican manufacturing wage gap was 237 percent. In 2010, it was only 13.8 percent. Reform efforts in Latin America have had, and continue to have, an enormous effect on economic growth. In the case of Brazil, many of the reforms that set the foundation for the faster growth seen over the past few years occurred during the 1994-1997 period, after the “Real plan” under then-President Fernando Henrique Cardoso. In Mexico, perhaps the most important difference between

Panelists at the Mexico-Brazil Economic Conference

the reform cycle in the 1990s and current developments is the emergence of democracy. The recent cooperation of the two major political parties (PRI and PAN) could contribute favorably to the reform agenda, which began in the 90s. A clear signal of a nascent spirit of cooperation was a recent deal agreed upon by both parties to reform Mexico’s antiquated labor laws. The panel also acknowledged that challenges facing economic reformers in Brazil are steeper than those facing reformers in Mexico. For example, with regard to promoting economic freedom and a good business climate, Mexico is significantly ahead of Brazil: in the World Bank’s 2012 Ease of Doing Business Index, Mexico ranks 53rd and Brazil 126th , while in the Heritage Foundation’s 2012 Index of Economic Freedom, Mexico ranks 54th and Brazil 99th. The successful auto industry in Mexico is contributing to the divergent paths for the two countries: after a significant increase in car exports from Mexico to Brazil, Brazil is requesting a reduction in auto export quota. This example demonstrates how Mexico is moving forward, willing to push the reform agenda, while protectionism is rising in Brazil. Additionally, Mexico has

taken steps to attract more foreign direct investment (FDI) by increasing investment in public/private projects, increasing lending through developing banks, and taking steps to liberalize industries. Leos used the metaphor that the two countries’ economies could be described as “manic depressive” in 2010: while Brazil was at its best, the Mexican economy fell on hard times; now, only two years later, in 2012, Brazil is struggling and Mexico could be characterized as “the comeback kid.” Mexico is growing due to higher productivity, while Brazil is slowing due to fundamental structural factors and reduced productivity. Another possible contributor to the weakening of Brazil’s economic growth may be the threat of demand slowdown in China. As a result Brazil’s government is carefully examining the challenges. In conclusion, all panelists agreed that in order to achieve GDP growth in both countries, as well as the Latin American region, the passage of new reforms is required. For further information about other events hosted by the Chapter in this 4th Quarter and other quarters/years, please visit www.usmcocne.org BY NICOLE NICEFORE

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It is widely agreed that Brazil was the first Latin American country to emerge from the global economic crisis, but despite Brazil’s significant economic gains, the country still faces considerable economic vulnerabilities: a large tax burden, unequal income distribution and onerous regulations for private corporations.

California Regional Chapter Los Angeles, CA Pacific Chapter Trade Mission to China THE GOLDEN TRIANGLE The relevance of the present and future of business with China and the world is well known. In our region, NAFTA and the neighborhood, of Mexico and the U.S. have developed a peculiar business model involving Mexico, China and the U.S.: Chinese companies manufacturing in Mexico for the U.S. market; export of Mexican commodities and food to China through the U.S., etc.

n 2010, the chapter decided to study this trilateral business model that we labeled “The Golden Triangle.” An inaugural seminar took place in Los Angeles in 2010 with special and friendly collaboration of the Hong Kong Association of Southern California. Its success motivated us to repeat the seminar in 2011, again a successful event with participants from the three countries.

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In 2012, we decided to take a delegation to China to further witness the future of The Golden Triangle. Last October, with the support of Pro Mexico in China, Mex Cham (the Mexico Chamber of Commerce in China) and the General Consulate of Mexico in Hong Kong, our Chapter led an 11-day trade mission to Beijing, Hangzhou, Shanghai and Hong Kong.

The trip included the Chinese Academy of Social Sciences Annual Forum of China-Latin America Business, the China-Latin America Business Summit,

MauricioMonroy, Marlen Marroquin, Esthea Reyes de Marroquin, Maggie Edwards, Pepe Garcia Torres, Jim Edwards, Judith Wilson, Moises Zepeda.

seminars presented by our delegates in Hangzhou and Hong Kong, seven meetings with business organizations and Chinese businessmen, and a visit to the largest business incubator in China. The itinerary was packed and the trip a fruitful and fascinating program. The results exceeded our expectations: ◦◦One deal in progress of one of our delegates. ◦ One visit to Los Angeles in October 2012 from the largest Chinese business incubator. ◦ Proposals by two major Shanghai Chambers of Commerce to enter into cooperation agreements with our chamber expected to execute this year. ◦ Identified a qualified liaison to our chapter in Shanghai. ◦ Request to assist a Beijing company to find contacts in Mexico and to collaborate with a trade mission from Hong Kong to Los Angeles in 2013.

Left to right: Moises Zepeda, Manolo Pasero, Judith Wilson, Juan Carlos Flores, Jim Edwards, Mauricio Monroy, Embajadora de Mexico en Hong Kong Alicia Buenrostro, Marlen Marroquin; Juan Carlos Vega; Javier Huerta and Rene Rodriguez.

All experts agree there has been a faster change in the Chinese economy, not only in size, but in approach from an export manufacturing hub to a bigger consumer of world goods and exporter of investment The Chinese government recently announced a policy to invite Chinese small- and medium-sized enterprises (SMEs) to invest abroad, an initiative labeled “Go Out.” This means that we will see an increasing number of Chinese SMEs coming to Mexico and the U.S. Chinese SMEs generally look for a local strategic partner providing great opportunities for Mexican and U.S. entrepreneurs to enter into trans-Pacific triple hit partnerships. Based on the success of our two annual seminars and our trade mission, the chapter plans to develop a formal initiative to put together another trade mission in 2013 and develop other initiatives to strengthen the future of business opportunities of The Golden Triangle.

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MIXER

The Woodlands Gulf Coast Chapter The Woodlands, TX GOLF TOURNAMENT, LUNCHEON & MIXER The Woodlands-Gulf Coast Chapter, located in Houston, TX, held three important events to close out 2012 and celebrate its first anniversary.

GOLF TOURNAMENT

he chapter held a highly successful golf tournament at the Woodlands Country Club on October 22. More than 95 golfers played on the well known Tournament Course and enjoyed fantastic weather while networking with current and future members. Proceeds from the event will help fund future efforts to forge new business between the Texas gulf coast and Mexico.

of Texas NAFTA Office of the Economic Development and Tourism Division (EDT) of the Office Texas Governor Rick Perry. Headquartered in Mexico City, this is the only foreign location for this office which is essential in international business development. More than 75 people attended the luncheon. Sanchez also held a private meeting with key business leaders who expressed interest in real-time business opportunities.

The third year-end event was a Networking Mixer that took place on the terrace at the very popular Crush Wine Lounge in The Woodlands. More than 60 members enjoyed a lovely evening visiting with other members and potential members, talking business and building new relationships. “These mixers are so important to get people to start talking about the next event that will bring more opportunities for our membership,” said Julie Charros-Betancor, vice president of the chapter and chair of the Membership Committee. YEAR-END REVIEW The Woodlands-Gulf Coast Chapter ends the year with 60 strong corporate members in its first year of operation. “We are proud of the establishment of this important office in our region. The interest in continuing to foster business relationships with Mexico is at an all-time high and we are focused on being the premier organization to do just this,” said chapter president Ronda Butler-Harkey.

Many thanks to our Gold Sponsor, United Airlines, as well as our other sponsors, Hermann Memorial Hospital The Woodlands, Pete Garcia International, AeroMexico, State Farm Insurance, Rice University and Amegy Bank among others.

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LUNCHEON FEATURING MONICA SANCHEZ

The year-end continued with a luncheon at the beautiful Woodlands Resort and Conference Center. Keynote speaker was Monica Sanchez, Director

Pete Garcia, John Hernandez, Michel Issa, Juan Luna

Eloy Saenz, Pete Garcia and chapter president Ronda Butler-Harkey Presidenta

Left to right: Grace Olivares, Chriselda Barrientes, Veronica Chavez-Mendez, Julie CharrosBetancor and Tory Enriquez.

CHICAGO

Mid-America Chapter. Chicago, IL OFFICER ELECTIONS

id-America Chapter is proud to announce our new officers: President Gery Chico, Chico & Nunes; Secretary Alejandra Morán, Sí Communications; and Vice President of Development and Membership; Robin L. Brown, Ingredion; Vice President of Programs and Events Richard Roche, Roche Industries; and Treasurer Carlos E. Terán, McDonald’s, who will stay on the board in this capacity. We thank our outgoing officers, John Trainor, VP of Programs and Jim Patti, Secretary, for their service these past two years. 2012 DOUBLE EAGLE AWARD DINNER Each year the U.S.-Mexico Chamber of Commerce, Mid-America Chapter, presents its Double Eagle Award, an honor that recognizes individuals and companies in both the public and private sectors who have worked toward

enhancing the bilateral relationship between the U.S. and Mexico. Recipients are chosen for their partnerships and commitment toward building a stronger relationship between the two countries. The awards are bestowed at an annual gala dinner. The 2012 Double Eagle Awards dinner was held in August at the famed and historical Drake Hotel in Chicago. Corporate recipients were McDonald’s and Kraft Foods Mexico. Both companies’ presence in Mexico has been one of commitment to good business relations. In addition to good business practices, they have demonstrated true social responsibility. The chapter also presents the award to a prominent public official who then serves as keynote speaker for the event. The chapter was proud to bestow the 2012 Double Eagle Award on Francisco Mayorga, Secretary of Agriculture of Mexico. MEXICO UPDATES: DETROIT AND

The chapter partnered with the Detroit/Great Lakes to produce the second Mexico Update, a conference that examined manufacturing in North America. Clayton & McKervey, P.C., hosted the event in their Southfield, Michigan office. The Mexico Update was focused on manufacturing in North America as a region, logistics, transportation and trade. Richard Wottrich, a consultant in The McLean Group’s Chicago office who leads the firm’s International Practice, was the keynote speaker. He spoke about both global and regional supply chains. The keynote was followed by two panels that discussed the benefits of integrating manufacture in North America, and logistics, distribution, intermodal connections and border security. These two updates touched on some of the key aspects of trade in North America and the current level of integration and efficiency the U.S. and Mexico have. Both countries need to continue this progress for an even better flow of goods and services. From changes in tax laws to changes in manufacturing, staying informed is necessary to maintain a competitive edge. The Chapter’s “Mexico Update” seminars serve this purpose.

Sabores Auténticos de Mexico is an organization funded by the ministry of Agriculture whose objective is to promote agricultural products from Mexico and also Mexican gastronomy, highlighting restaurants in the U.S. that are authentic Mexican, and also local chefs.

J.C. Gonzalez-Mendez receiving award from Al Zapanta.

Al Zapanta giving award to Anne Alonzo and Roberto Soto from Kraft Foods.

They awarded 20 Chicago area restaurants and the five course menu was prepared by local chefs. The dinner was at The Murphy auditorium and was attended by 200 people, mostly from the restaurant, culinary and media industry. The U.S. Mexico Chamber of Commerce was instrumental in the organization and promotion of the event.

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SABORES AUTÉNTICOS DE MÉXICO COCKTAIL RECEPTION, AWARD CEREMONY AND DINNER

Pacífico Chapter. Guadalajara, Jal. CONVENIO CETI–USMCOC-PACÍFICO

l jueves 30 de agosto del 2012, se llevó a cabo una ceremonia especial para inaugurar el Centro de Emprendurismo e Innovación (CEI) dentro del Centro de Enseñanza Técnica Industrial (CETI) Plantel Colomos en Guadalajara, Jalisco, donde se dieron cita diversos actores de la comunidad académica, gubernamental y empresarial. Este Centro brindará a los estudiantes una alternativa para incursionar en el mundo laboral y así contribuir de manera sustancial a la creación de

empresas; el CEI funcionará como una incubadora de proyectos para alumnos con el fin de asesorarlos y constituirse como una empresa que genere fuentes de trabajo y pueda sostenerse por sí misma. En este evento se firmó un convenio de colaboración entre la Cámara de Comercio México–Estados Unidos Pacífico Chapter, y el Centro de Emprendurismo e Innovación (CEI) con el objetivo de promover una relación constructiva entre ambas entidades y apoyar a los emprendedores jaliscienses.

De izquierda a derecha: Geovanni Ramírez, Director General de Opportunitas; Francisco Plancarte, Presidente de la Cámara de Comercio México–Estados Unidos Capítulo Pacífico; Celso Gabriel Espinosa, Director General del CETI; y María del Cielo López, Directora General de Emprendurismo e Innovación Tecnológica de la Secretaría de Educación Jalisco.

Los asistentes a la Inauguración del Centro de Emprendurismo e Incubación (CEI).

RECONOCE JALTRADE LA LABOR DEL PACÍFICO CHAPTER

l pasado 11 de octubre de 2012, se llevó a cabo un evento organizado por JALTRADE, en el cual se informó sobre los logros obtenidos en materia de promoción a las exportaciones en el estado de Jalisco.

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Reconocimiento otorgado por JALTRADE Y PROMEXICO a la USMCOC Pacífico Chapter.

En dicho evento se le otorgó un reconocimiento a la Cámara de Comercio México–Estados Unidos Pacífico Chapter,

por el apoyo proporcionado a dicha organización para la internacionalización de empresas de Jalisco en Estados Unidos durante los últimos seis años, y se contó con la presencia de Jaime Martínez, Secretario de Promoción Económica del estado de Jalisco; Alberto Ruiz Fernández, Director de Promoción Externa de JALTRADE; y de Sergio Ríos, Coordinador Regional de Occidente PROMÉXICO.

DESAYUNO-BIENVENIDA DE LA CÓNSUL GENERAL DE EE.UU. EN GUADALAJARA

l pasado viernes 9 de noviembre de 2012, se llevó a cabo en la Cámara de Comercio Servicios y Turismo de Guadalajara (CANACO), el desayuno de bienvenida de la Cónsul General de EE.UU., Susan Abeyta. En dicho evento, el Presidente del Pacífico Chapter, Francisco Plancarte

y García Naranjo tuvo el honor de otorgar los siguientes reconocimientos a invitados especiales: · Susan Abeyta Cónsul General de los EE.UU., como Presidente Honorario de la cámara. · José Pérez Ramírez, Presidente de Grupo Promomedios Radio, como Consejero Invitado.

Francisco Plancarte y García Naranjo Presidente USMCOC Pacífico Chapter, y Susan Abeyta Cónsul General de EE.UU en Guadalajara.

Guanajuato Chapter. Leon, Gto. POR EL MEDIO AMBIENTE Y LA EDUCACIÓN AMBIENTAL

on el objetivo de fomentar una cultura ecológica entre la sociedad del municipio de León, se entregaron en el mes de septiembre de 2012 los reconocimientos “Al mérito leonés” correspondientes a empresas u organizaciones que han hecho actividades en favor del medio

ambiente. La USMCOC a través del Centro de Producción más Limpia del Bajío (CPLB) fue reconocida por su contínua contribución a la educación ambiental en el municipio. Asimismo, empresas de diferentes sectores a través de la asesoría del CPLB obtuvieron reconocimientos en la materia.

Entrega del reconocimiento “Al mérito leonés” por el ex alcalde del Municipio de León a Sergio Ponce, Director Ejecutivo del Guanajuato Chapter.

EL CPLB, UN MODELO INTERNACIONAL

D Sergio Ponce impartiendo una de las conferencias.

iversos son los problemas ambientales que en la actualidad afectan no solo al medio ambiente, sino a la salud humana y la economía de los países. Algunos de ellos, de carácter mundial, son: el calentamiento global, escasez de agua, deforestación, y contaminación de suelos y alimentos con sustancias químicas peligrosas. En atención a tales problemas, los especialistas del CPLB han desarrollado diversos proyectos para el sector productivo

y de servicios en la zona centro del país, con el objeto de contribuir en el aumento de la eficiencia productiva, la competitividad y la preservación de los recursos naturales. Por lo anterior, del 15 al 17 de octubre el CPLB fue invitado a impartir dos conferencias sobre dos de los proyectos que desarrolla en México en materia de “Sustancias químicas peligrosas” y Huella de carbono” en San Pedro Sula, Honduras, en el Segundo Congreso Internacional de Producción y Tecnologías Limpias.

l mundo de los negocios no es solo la producción y venta de un producto o servicio determinado, dentro o fuera de la localidad. Los negocios son todo un proceso en el cual interactúan maquinaria, herramientas, transporte, energía, tiempo y recursos naturales, humanos y económicos. La globalización ha propiciado que las empresas independientemente de su ubicación, tamaño y giro busquen mayores mercados para comercializar sus productos o servicios. Por tal motivo, la USMCOC Capítulo Guanajuato brinda a todos sus

agremiados y al público en general la asesoría y actividades necesarias para lograr negocios exitosos. Una de estas actividades fue la realización de un desayuno-conferencia en el hotel Crown Plaza de León, Gto., denominado “Negocios a través de la logística integrada” en el cual participaron dos ponentes de primer nivel que hablaron sobre diferentes temas que involucran cómo tener un negocio exitoso; se contó además con la participación de la narrativa de dos casos de éxito en el sector (Botas Caborca y Termoprene) que han utilizado tales servicios y que actualmente son miembros de la USMCOC.

Asistentes al desayuno-conferencia

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CONFERENCIA “NEGOCIOS A TRAVÉS DE LA LOGÍSTICA INTEGRADA”

Michoacan Chapter. Morelia, Mich.

FORO DE PROYECTOS ESTRATÉGICOS PARA LA REGIÓN CENTRO-OCCIDENTE

Foro de Proyectos Estratégicos Region Centro-Occidente.

l lunes 28 de enero del 2013 en Morelia Mich., el VP de la USMCOC Capítulo Michoacán, Roberto Ramírez, entregó un reconocimiento a Fausto Vallejo, Gobernador del estado durante el Foro

de Proyectos Estratégicos para la Región Centro-Occidente. El mandatario estatal encabezó dicha reunión, y durante su discurso destacó que todo lo que significa empleo, contará con el apoyo de la actual administración ya

que genera desarrollo. Cerca de diez proyectos carreteros comenzarán, que serán licitiados y sobre los que resalta, el estudio de impacto ambiental. En la reunión, también estuvieron presentes, Salvador Jara Guerrero, Rector de la Universidad Michoacana (UMSNH); Rigel Macías Hernández, Diputado presidente de la Comisión de Comunicaciones y Transportes del Congreso local; y Mario Alberto Zarazúa, Director del centro SCT Michoacán, entre otros. Por otra parte el ejecutivo local, afirmó que apoyarán los puntos que firmó el presidente Enrique Pena Nieto en materia hospitalaria e infraestructura carretera. En el foro también estuvo presente Luis Manuel Navarro Sánchez, Secretario estatal de Comunicaciones y Obras Públicas; José Roberto Santillán Ferreyra, presidente de la CMIC Michoacán; María Teresa Torres Aguilar, Coordinadora estatal de la Secretaría de Gobernación federal; y Nicandro Ortiz, Presidente de la USMCOC Capítulo Michoacán, así como representantes de los gobiernos de las entidades que conforman la Región Centro-Occidente.

FORO DE PROYECTOS ESTRATÉGICOS PARA LA REGIÓN CENTRO-OCCIDENTE

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

a USMCOC Capítulo Michoacán, en su compromiso hacia el gobernador del estado, ha apoyado los eventos de relevancia nacional e internacional que se realizan en la entidad. En esta ocasión y por gestiones directas del mandatario michoacano, se celebró en el ex Convento Franciscano de Tzintzuntzan la reunión plenaria de la Comisión Nacional de Gobernadores (CONAGO), presidida por la titular de la Secretaria de Turismo Federal, Claudia Ruiz Massieu Salinas, quien se pronunció a favor de los acuerdos que detonen al país como un destino turístico de primera clase que se puede acercar a las personas que aún no lo conocen, así como de grandes atractivos y de gran calidad en los servicios que se presta. La Secretaria Ruiz Massieu Salinas, reunida con los gobernadores de Michoacán, Tlaxcala, Nayarit, Colima, Quintana Roo, Hidalgo y Yucatán, así

como con los 22 secretarios de turismo de los estados participantes, aseguró que durante la presente administración federal existe una estrecha relación con los responsables en los estados de las políticas de turismo, y que se creará la Comisión Nacional de Secretarios de Turismo. Por su parte en la apertura del cónclave en materia de turismo, el gobernador de Quintana Roo, Roberto Borge Angulo, aseguró que para promover el turismo extranjero, hay acercamientos con el estado de Texas con la finalidad de potenciarlo, además de crear las estrategias para disminuir las alertas a los viajeros en temporada alta de vacaciones, y con ello generar confianza en los posibles visitantes. El gobernador Vallejo aseveró que la reunión fue un marco idóneo para acentuar los lineamientos y políticas

En Michoacán, El Gobernador Fausto Vallejo con la Secretaria de Turismo Federal, Claudia Ruiz Massieu, gobernadores y los secretarios de Turismo de 27 entidades.

Reunión en Michoacán de la Comisión de la CONAGO con la Secretaria Claudia Ruiz Massieu y los gobernadores de Quintana Roo, Tlaxcala, Yucatán, Hidalgo y Colima.

públicas en relación al turismo, confirmando que la intención es hacer un turismo más competitivo y con ello fortalecer el turismo nacional e internacional.

entre entidades publicas y privadas nos colocan en el umbral de progresar en nuestras economías a pasos agigantados. Este cambio nos requiere balancear, mas que nunca, las necesidades económicas, ecológicas y sociales.

Con las dos recientes rondas para el desarrollo de campos maduros a través de Contratos Integrales de Exploración y Producción (CIEP), PEMEX ha dado inicio a una nueva era de modelos de contrato en la industria petrolera Mexicana, permitiendo el crecimiento de reservas y producción de hidrocarburos. La eficiencia en el desarrollo de campos petroleros es un elemento fundamental para el éxito de la estrategia energética de nuestro país. En el contexto de ejecución de proyectos, la acumulación y aplicación de buenas practicas globales ayuda a reducir los riesgos típicos de operación. Mas aún, para maximizar la eficiencia, los aspectos técnicos, que generalmente están relacionados con equipo, tecnología, competencia de personal, y los no técnicos, como las relaciones con las comunidades y el manejo de riesgo cualitativo, entre otros, habrán de tomarse en cuenta con una importancia equivalente. Durante las ultimas tres décadas, las comunidades alrededor del mundo

han evolucionado estando ahora más conectadas e informadas que nunca antes. Los puntos de vista sociales son ahora más uniformes. Estos cambios se han caracterizado por la gran atención hacia la fragilidad y la capacidad limitada de nuestro planeta, y la creciente aceptación de que las empresas no pueden operar exitosamente dentro de una sociedad descontenta. Este concepto es comúnmente conocido por empresas multinacionales como la “licencia social” para operar. Ejemplos de ambos extremos de la gama de resultados pueden verse desde Francia hasta el estado de Nueva York en donde se ha prohibido la utilización de ciertas tecnologías de producción o en contraste en el estado de Texas, y las Dakotas donde el manejo integral de operador y comunidad ha sido manejado de manera exitosa. De forma concurrente con este nivel de participación de la sociedad actual, un nueva revolución industrial arranca y crece en Latinoamérica. Las nuevas tecnologías y modelos contractuales

El éxito en el desarrollo de dichos yacimientos en cualquier lugar del mundo puede ser logrado eficientemente cuando el ciclo de vida de cada proyecto es considerado como una unidad. En la cual, cada una de las etapas considera las influencias de los diferentes elementos técnicos y no técnicos necesarios para su implementación exitosa. Concurrentemente, cada uno de estos tipos de riesgo tiene influencia en el otro. El claro entendimiento y manejo de cada uno de los riesgos durante la progresión de las etapas del proyecto es un modelo bajo el cual se puede lograr la máxima eficiencia. Un modelo integrado de ejecución que considere el ciclo de vida completo de los proyectos nos hace posible desarrollar estrategias para reducir el impacto ambiental y social de los proyectos en las comunidades y, a la vez, aumentar la rentabilidad de los mismos. La aplicación de esta estrategia aumenta la viabilidad de operaciones de proyectos y mejora la reputación de nuestras empresas a largo plazo, lo que favorece la permanencia de los negocios más sustentables. ERM, a través de sus 140 oficinas y casi 5,000 consultores en sustentabilidad, apoya a la industria privada para lograr la mejor toma de decisiones, reducir riesgos en la implementación de proyectos utilizando un enfoque de ciclo de vida y las mejores prácticas de consultoría aplicadas alrededor del mundo.

ADVERTORIAL / PUBLIREPORTAJE

El enfoque integral de ciclo de vida en la ejecución de proyectos permite el desarrollo de estrategias efectivas que protegen el medio ambiente y la armonía social

La ejecución sustentable de proyectos en campos maduros y campos no convencionales requiere de un manejo de riesgo integral enfocado a las dos áreas interdependientes ya mencionadas: riesgos técnicos y riesgos no-técnicos. Algunos de estos riesgos no técnicos son ya familiares para la industria; sin embargo, con la nueva proximidad de yacimientos a zonas habitadas es indispensable, no solamente contar con las autorizaciones oficiales, sino también contar con la “licencia social” para operar.

Sobre el autor: Jaime Martínez / Director de Desarrollo de Negocios, ERM México. Jaime.Martinez@erm.com, Tel. +52(55) 5000-2500

Forces and Threats

to Mexico’s Economic Recovery By Manuel Sánchez / Vice-Governor of Bank of Mexico

Photo provided by Banco de Mexico.

OPINION ECONOMY / OPINIÓN

I 38

Manuel Sanchez addressing USMCOC Northeast Chapter. Photo by Cutberto Garcia

t is a great honor to be back at the Northeast Regional Chapter of the United States - Mexico Chamber of Commerce. Thank you for inviting me to share some thoughts with you on the Mexican economy´s recent evolution and its near-term outlook.

Since I was here over a year ago, the pace of economic recovery in Mexico has strengthened, even surprising on the upside, slightly exceeding mainstream forecasts. However, some risks that I exposed then still remain today, notably those related to the world economy, while others associated with domestic concerns have surfaced. In this brief overview of Mexican economic conditions, I will focus on both old and new issues, including those regarding inflation and monetary policy. As always, my remarks are entirely my own responsibility and do not necessarily reflect the views of the Bank of Mexico or its Governing Board.

Since the middle of 2009, Mexico has been experiencing a process of continuous economic recovery. Three characteristics of the upswing are worth mentioning. First, the rebound has proceeded at rates of growth that have been roughly twice as high as those observed during the first decade of the century, before the global crisis.1 Obviously, high growth is partly explained by adjustment from the deep recession that the country suffered three years ago in the aftermath of the global financial crisis. However, even after taking the correction into account, recent expansion is noteworthy. Specifically, on average during the first three quarters of 2012, GDP increased 4.2 percent in annual terms, a rate which has contributed to bringing economic growth back to the level of its long-term trend, as reflected by conventional estimations that the output gap has closed. This progress contrasts with economic underperformance relative to historical standards in many developed nations and, in particular, the United States, Mexico’s main trading and investment partner. Second, the current upturn has been balanced, in the sense that it has included all key components of aggregate demand, notably, domestic fixed investment and consumption. Capital formation has shown substantial rates of growth, surpassing those of consumption, as typically occurs over business cycles. Nevertheless, and despite recent signs of slowing, during the last two years consumer spending has been increasing at a fairly stable annual rate, close to 4 percent. In a structural sense, the reactivation of economic activity and domestic absorption in particular has been possible thanks to Mexico’s macroeconomic fundamentals, including contained public debt with rising maturities, moderate inflation rates, and a wellcapitalized, provisioned and liquid banking system. Indeed, the stable macroeconomic environment has enabled bank lending to firms and households to support dynamic domestic investment and consumption. In the upswing, a positive feedback loop has emerged between labor market developments and consumer spending. Formal employment has continuously expanded, as measured by the number of workers registered by the Mexican Social Security Institute (IMSS). Although still higher than pre-crisis levels, the total unemployment rate has been gradually declining. This progress has occurred while labor force participation has recently expanded, the duration of unemployment has fallen, and transitional indicators of employment and unemployment have improved. As a result,

the total wage bill has posted real annual growth during the last three quarters. A third characteristic of the current upturn, which may explain cyclical developments more than any other factor, is the extraordinary support provided by external conditions, particularly from advanced countries. On the surface this may sound contradictory, considering the significant difficulties these nations have faced in resolving the fiscal and financial problems that gave rise to or resulted from the global crisis. After all, prolonged uncertainty regarding the effectiveness of corrective measures in those countries has long put a downward bias on output forecasts for many emerging economies, including Mexico, given its close production ties with the United States. Yet, in spite of this uncertainty and the relatively weak rebound of the U. S. economy, Mexico’s actual economic growth has been higher than expected, to a large extent, due to two external factors: solid demand for Mexican exports, and unusually favorable financing conditions.2 Obviously, these factors are not separate from the economic policies implemented by developed countries. Let me now examine them in more detail. EXTERNAL SUPPORTING FACTORS Along with the world economy, as of the third quarter of 2012 Mexico was in its 14th quarter of economic expansion. Because of Mexico’s large degree of openness, the revival of world trade has translated into a significant impetus for Mexican economic activity. Specifically, non-oil exports, which represent approximately 85 percent of the country’s total merchandise shipments abroad, have been increasing at double-digit annual rates in dollar terms. Especially vigorous has been the advance of automotive exports, the largest non-oil export item. But sales of other goods have also shown substantial growth. Non-oil exports have been expanding both to the United States and, even more strongly, to the rest of the world.3 This development is consistent with the diversification trend registered by Mexican shipments during recent years. Particularly, while in 2000 sales to the U.S. represented approximately 90 percent of total non-oil exports, twelve years later this proportion has fallen to 78 percent. Several factors seem to be at play in the robustness of exports. External demand has been backed by the resilience of consumer spending abroad, which has been a significant engine of the recovery in the United Sates and other parts of the world. But Mexico’s non-oil exports may also have been favored by price competitiveness, as suggested by high

Average annual GDP growth was 2.3 percent from 2001 to 2007, and 4.5 percent from 2010 to the third quarter of 2012. 2 For example, analysts’ average forecast for GDP growth in 2011 was 3.6 percent at the end of 2010 and actual growth was 3.9 percent. Similarly, the average forecast for GDP growth in 2012 was at 3.2 percent at the end of 2011 and 3.9 percent at December 2012. See Banco de Mexico Survey of Private-Sector Analysts. 3 From January 2010 to November 2012, the average annual growth of the dollar value of automotive and non-automotive exports was, respectively, 32.2 percent and 13.7 percent, while that of non-oil shipments to the United States and the rest of the world was, respectively, 16.7 percent and 22.1 percent. 1

OPINION ECONOMY / OPINIÓN

CURRENT ECONOMIC REBOUND

productivity gains and declining unit labor costs in the country’s manufacturing industry in recent years. Also, the relatively weak Mexican peso vis-àvis the U.S. dollar could have contributed. All in all, price competitiveness together with the advantage of geographical closeness may help explain the fact that Mexican exports have regained market share in U.S. total manufacturing imports.4 A second external driving force stems from extraordinarily favorable financial conditions. Unusually lax monetary policies implemented by many developed countries and in particular by the United States, have resulted in policy and market interest rates that during 2012 were at or close to alltime lows in those nations. Since Mexico’s yield curve has been shifting downward in tandem with that of the United States, domestic yields have also fallen to record-low levels. As in other emerging markets, a major transmission mechanism of imported monetary easing has been substantial capital flows into the country, driven by the search for yield in equity and fixed income assets. Especially significant have been flows directed to peso-denominated government bonds. Mexico has been attracting an increasing proportion of total capital inflows devoted to emerging-market local bonds. As of December 2012, in Mexico, close to half of all pesodenominated public debt securities with fixed coupons are held by foreign investors. Factors behind the portfolio inflows may include Mexico’s macroeconomic stability, capital account openness, a freely floating exchange-rate regime, and high liquidity enjoyed by the Mexican peso in FX markets. Resulting favorable financial conditions have supported credit to firms and, in general, the recovery of bank lending to the private sector. As financing costs have fallen, so has the required return on capital projects, promoting investment.

assume that easy credit will last forever. As a result, over-borrowing and asset price bubbles emerge, which eventually end in implosions that impair the functioning of the economy, as witnessed in the last global financial meltdown. Hence, possible capital reversal calls for prudence on the part of economic agents in Mexico. As in any economy, the need to detect financial bubbles poses a challenge for policymakers. Although in accomplishing this task, authorities do not generally have knowledge that is superior to that of market participants, they should have stronger incentives for warning against possible excessive risk-taking. Given the inherent difficulty of measuring systemic risk and the probability of unintended consequences from direct interventions in credit markets, moral suasion could, in principle, be an advisable policy tool.5 The base-case scenario for Mexico’s economic outlook, as posited by most analysts, assumes the continuation of favorable external conditions. This assumption does not seem unreasonable at this point in light of new rounds of monetary accommodation recently announced by the U.S. Federal Reserve and other central banks. In this environment, the Mexican economy is forecast to continue growing at rates between 3 and 4 percent this year and the next. Obviously, the substantive role that external conditions have played in Mexico’s economic recovery makes their eventual weakening a fundamental risk. In particular, if U.S. industrial production slows, Mexican manufacturing exports may decelerate notably. Additionally, further difficulties encountered by the euro area countries in implementing measures aimed at an integral solution to their common problems could generate new bouts of financial volatility and engender adverse effects on world economic prospects, affecting Mexico.

OPINION ECONOMY / OPINIÓN

INFLATION AND MONETARY POLICY

It is often said that the main risk associated with buoyant capital inflows is the possibility of a “sudden stop.” Indeed, this scenario is likely and it has occurred, on innumerable occasions, for reasons not exclusively related to the recipient country, including several times in Mexico. A sudden stop of capital inflows has frequently implied the need for traumatic adjustments in domestic spending, employment and growth, as has been illustrated by the collapse of foreign investment in the peripheral countries of the Eurozone. The most serious risk associated with capital inflows is not the ever-present possibility of a reversal, but rather ignoring the likelihood of the event. To be sure, financial crises typically occur because people

From April to September 2012, annual inflation rose continuously, and from June to November it surpassed the upper limit of the variability interval of plus or minus one percentage point around the Bank of Mexico’s permanent 3 percent target.6 A central element fueling this deterioration was significant price pressure from agricultural products, resulting mainly from international drought and the outbreak of bird flu in Mexico. These effects manifested themselves primarily in the non-core component of the National Consumer Price Index (INPC), which includes those items that tend to exhibit the highest price volatility. A second, more prolonged trend comes from

4 For an interesting study of the productivity gains of Mexican manufacturing exports, see Oviedo, M. (2012), “The productivity revolution and the China (manufacturing) syndrome,” Barclays, Emerging Markets Research, 6 September. 5 For an evaluation of the current state of Mexico’s financial system, see Council for Financial Sector Stability (2012), “Informe anual sobre el estado que guarda la estabilidad del sistema financiero en México y sobre las actividades realizadas por el Consejo de Estabilidad del Sistema Financiero,” March. 6 After six consecutive months of being out of the central bank’s variability interval of plus or minus one percentage point of 3 per cent, in December 2012 inflation decreased dropping this indicator inside the variability interval. Nevertheless, given that the reduction on inflation was mainly consequence of an extraordinary factor that could be transitory, as is the reduction of telecommunication tariffs, most of the assessment presented in this section is still valid up to January 2013.

increasing annual rises in the INPC core component since the second half of 2011. Among other factors, this tendency reflects some pass-through from the depreciated Mexican peso vs. the U.S. dollar, as well as significant processed food price increases. Before December 2012, private-sector forecasts were for annual inflation to remain above 4 percent at the end of 2012. The worsened scenario was cause for concern, as inflation imposes a significant cost on society. Given the large weight of food components in the price index, this burden tends to fall more heavily on the lower-income population. Also, inflation uncertainty may hinder consumption and investment and, hence, the pace of the ongoing economic recovery. Given these prospects, it has been crucial to evaluate whether those price pressures are transitory and will not generate future problems for controlling inflation. Most importantly, monetary policy will have to be adjusted in a timely way if convergence of inflation to the 3 percent permanent target is endangered. Two sources of risk that have been continuously monitored are first, the amplification of second-round effects from international price shocks and foreign exchange volatility, and second, evidence of aggregate demand pressures. It is worth mentioning that, as of last December, close to half of the goods that comprise the INPC basket exhibited annual price changes greater than 4 percent, and some indicators of slack in the economy have already disappeared. The most essential challenge to Mexican monetary policy remains the anchoring of inflation expectations on the 3 percent permanent target. As reflected in analystsâ&#x20AC;&#x2122; surveys, inflation expectations for the medium and long term continue to be relatively stable but stubbornly above the objective.

The encouraging pace of the ongoing economic recovery does not imply that the economy is growing at rates that are sufficient to meet social needs or exploit potential opportunities. In order to enhance living standards more significantly, Mexico has to consolidate macroeconomic stability, by promoting strengthened public finances in preparation for future obligations and difficulties, the convergence of inflation to the permanent target, and further improvement of the regulatory and supervisory framework for financial institutions. Additionally, total factor productivity growth should be facilitated. Considerable efficiency gains seem possible in the services sector and in non-manufacturing industries, given their size in the economy and the relatively low levels of productivity. This could be accomplished by removing obstacles to the reduction of informality and by facilitating competition.

OPINION US-MEXICO IN DEPTH / OPINIĂ&#x201C;N

CONCLUDING REMARKS

Mexico’s New Labor Law: A Step Forward to Greater Competitiveness

OPINION LAW / OPINIÓN

NAFTA Works, A Monthly Newsletter On NAFTA and Related Issues, January 2013; Volume 18, Issue 1

n December 1, 2012, Mexico enacted a new federal labor law, the first major update in more than 40 years

that shows the country’s commitment to embrace the needed structural reforms to increase economic competitiveness globally.

One of the most important changes to the law is the expansion of the modalities of labor contracts available for employers to include seasonal jobs and temporary contracts in addition to those already in place for definite and indefinite-term contracts and for specific work which benefits younger workers. Moreover, a set of new rules allows trial periods and initial training periods for employees, during which employers will be able to assess whether employees have the required skills for the position. Trial periods will last from three months for rank-and-file workers to six months for executive employees with the possibility to terminate the labor relationship without penalty if the candidate does not meet the required knowledge declared in a previous opinion issued by an employeeemployer commission. For the first time, the law sets rules for the conditions where outsourcing may be permitted. A company subcontracting another is responsible for ensuring the subcontractor’s compliance with labor laws. It limits the applicability of personneloutsourcing to specialized tasks and those tasks that are different from the ones carried out by the customer’s workers. The outsourced work cannot cover the totality of the activities undertaken at the workplace. The amendments to the law establish new provisions that allow companies to dismiss employees more easily and expand the pool of workers available for hiring by eliminating the “closed-shop” rule. It also simplifies the notice of dismissal requirements by allowing such notice to be delivered directly to the worker. Back wages made by a company as a result of legal disputes are also limited to a 12-month period. In the case where employees prevail against an employer after this period of time has expired, they will collect 2% interest on back wages with a 15-month cap. Any back wages will be suspended upon the death of the employee. The new law modifies several provisions regarding the process to resolve disputes, including an emphasis on dispute settlement through various stages of trial. The new provisions provide for hourly wage payments and mandate that they may not amount to less than the daily minimum wage of salaried workers, effectively creating an hourly minimum wage. The rules replace those that

set only a daily rate, creating flexibility for employers hiring informal or part-time labor. It also allows payment to workers by direct deposit into a bank account, transfers, or through any other electronic means. In addition, employers are now allowed to issue employment-related documents electronically. The legislation allows companies to promote employees on a merit-based system instead of only seniority and offers productivity rewards. The new rules make training mandatory for employers and workers with the aim to increase productivity and require agreements among employers, workers, and unions to measure and increase productivity. Regarding safeguards against child labor, the law defines the hiring of minors under 14 years old as a crime. The law also strengthens the rights of legally employed youths. It requires companies with more than 50 employees to adapt their facilities to allow access to handicapped employees. The new legal framework sets guidelines to improve working conditions for household, agricultural and mining workers and ensure they have the same benefits granted by the law to all other types of employees. There are also specific rules for employers that hire Mexican employees to work abroad. The new law also extends protections against discrimination to certain employee groups. The non-discrimination provisions spell out the equal standing of all employees in comparable positions and forbid any exclusion or differentiated treatment based on ethnicity, nationality, gender, age, disability, health condition, religion, immigration status, personal opinions, marital status, or sexual orientation. The labor law also includes sexual harassment and bullying to the list of justifiable causes for ending a labor contract and prohibits employers from requesting pregnancy tests as a hiring condition. The law provides for a 12-week maternity leave and 5-day paternity leave, which apply for adoption as well. The amendments cover more topics than those mentioned above. Thus, a comprehensive review of the numerous and significant changes is necessary to fully observe the revised and new provisions of Mexico’s labor law. Overall, the new law ultimately has the goal of promoting the creation of new and better-paying jobs. Therefore the reform increases protection for employees and provides greater certainty regarding labor relations and requirements which will promote a more competitive and efficient environment for companies to do business in Mexico.

OPINION LAW / OPINIÓN

The wide-ranging upgrade to the labor law will bring benefits to both workers and businesses alike, positively affecting labor relationships in Mexico. It provides stronger protections for workers and wider flexibility for companies to adjust to changes in demand.

The U.S.-Mexico High Level Regulatory Cooperation Council: Actions oriented to boost trade, investment and reduce costs for doing business

By Fausto Gerardo Gurrea Martínez / Mexico Contact Point. US-Mexico High Level Regulatory Cooperation Council. Subsecreatariat of Competitiveness and Business Regulations. Ministry of Economy.

OPINION INTERNATIONAL TRADE / OPINIÓN

he international arena has become an environment of competition between different players of several economies around the world. In this context, the relationship between Mexico and the U.S. should be understood as a partnership, a strong alliance; a constant opportunity for more exchange, more innovation, trade and investment. Due to geographic proximity and a number of key complements, economic cooperation between our countries is one of the best ways to improve North America’s regional competitiveness and facilitate growth of local industries.

One great benefit of the integration of our economies results from the elimination of tariffs and the reduction of non-tariff barriers through NAFTA. However, there is still room to establish tighter networks, to build common languages between industries and regulators, and to take advantage of more opportunities—especially in regulatory areas; where we can improve and build leaner processes that enable innovation, trade and investment. This need has led to the development of a regulatory cooperation mechanism, High Level Regulatory Cooperation Council (USM-RCC). BACKGROUND AND PROCESS

As Christopher Wilson highlights in the document, “Working Together: Economic ties between the United States and Mexico,” there are several facts that support the importance of this bilateral partnership. One of them is the fact that 40 percent of the value of U.S. imports from Mexico is made of content produced in the United States. Another fact is that more than six million U.S. jobs are supported by bilateral trade with Mexico.1

In May of 2010, the presidents of Mexico and the United States created USM-RCC as a key element of the bilateral competitiveness agenda. The Council’s main objective is to narrow the gap between diverse regulatory processes from both countries and bring them closer together in order to reduce the costs of trade and to promote investment.

USM-RCC’s creation was part of a long series of efforts undertaken by both countries to move their internal regulatory improvement strategies toward an international/regional standard. Two of these efforts were the creation of the North American Competitiveness Council (NACC) in 2006, and the joint statement on regulatory cooperation delivered at the North American Leaders’ Summit (NALS) in 2009. The belief is that increasing regulatory cooperation will make a significant contribution in boosting the achievements reached by commercial agreements such as NAFTA. The Council is co-chaired by high level officials from Mexico’s Ministry of Economy, the U.S. Department of Commerce (USDC) and the Office of Information and Regulatory Affairs (OIRA), and includes the participation of the Ministry of Foreign Affairs, the U.S. Department of State and relevant regulatory agencies from each country. Its activities are conducted following best international practices such as the regulatory governance cycle advocated by the OECD (Organization for Economic

1 Wilson, Christopher E., “Working Together: Economic ties between the United States and Mexico”, Mexico Center, Woodrow Wilson International Center for Scholars, November, 2011. Available at: http://www. wilsoncenter.org/sites/default/files/Working%20Together%20Full%20Document.pdf

The Council’s Terms of Reference called for conducting public consultations and creating a work plan that would outline its activities for a period of two years. In order to identify potential sectors and actions for collaboration, each country gathered proposals from the private and public sectors aimed at potential areas for regulatory cooperation. The public input process in the U.S. took place from March 3 through April 14, 2011, and received 48 proposals, while the process in Mexico took place from April 14 through May 5, 2011, and received 252 proposals. There was significant participation from social and private chambers, councils, associations, academia, and government agencies. (See tables 1 and 2) THE WORK PLAN It is important to point out that a key element for the effectiveness of the Council’s activities is the transparency and openness of its working process. This involves a great degree of interaction and communication with both private and public stakeholders from both countries. The proposals received during the public hearings were analyzed and refined to areas of regulatory cooperation with two elements: high political feasibility and impact on economic growth. On February 28, 2012, the Council’s first work plan was published simultaneously in Mexico and the U.S. It identified seven specific areas of regulatory cooperation. The design and implementation of the work plans had been the responsibility of bilateral working groups formed by the relevant regulatory agencies from both countries. It is expected that the specific deliverables in the Council´s work plan will assist in the goal of continued innovation, trade and investment by using common regulatory approaches in the different areas of collaboration. It is important to highlight that one of the most important characteristics of the Council is that it is designed with a long-term vision. The Council’s first work plan focus has been to consolidate an aggressive, yet attainable, agenda that will serve as a cornerstone to building more ambitious regulatory cooperation initiatives between our countries in the near future.

TABLE 1. REGULATORY COOPERATION MECHANISM · The activities of the Council follow an adaptation of the Regulatory Governance Cycle recommended by the Organization for Economic Cooperation and Development (OECD) aligned to best international practice.* · This includes the 4 C’s: consultation, coordination, cooperation and communication. Accomplished

1. Planning · May 2010: US and Mexico Presidents joint declaration creating the Council · September 2010: 1st Council Meeting · March 2011: 2nd Council Meeting · March 2011: Bilateral Approval of Terms of Reference 5. Evaluation and Monitoring · Oct 2012: 4th Council meeting: evaluation and coordination

In process

2. Public Consultation · March 3rd to April 14th 2011: US’s public consultation, 48 proposals received · April 14th to May 16th 2011: Mexico’s public consultation, 252 proposals received 3. Design · Aug 2011: 3rd Council Meeting, Work Plan negotiations · Feb 2012: Work Plan Publication

4. Implementation · Mar 2012: Internal regulator meetings · Aug 2012: US – MEX conference calls Source: OECD (2011), “Regulatory Policy and Governance: Supporting Economic Growth and Serving the Public Interest http://www.oecd-ilibrary.org/governance/regulatory-policy-and-governance_9789264116573-en

TABLE 2. OBJECTIVES OF THE COUNCIL (MARCH 2011) I. Making regulations more compatible. II. Increasing regulatory transparency. III. Simplifying regulatory requirements through public involvement. IV. Improving and simplifying regulation by strengthening the analytic basis of regulations. V. Linking harmonization and regulatory simplification to improvements in border-crossing and custom procedures. VI. Increasing technical cooperation. Source: High Level Regulatory Cooperation Council, terms of reference, March 2001. http://www.whitehouse.gov/sites/default/files/omb/oira/irc/high-level_regulatory_cooperation_council-terms_of_reference_final.pdf

THE WORK PLAN: KEY DELIVERABLES The Council’s Work Plan includes 7 areas for collaboration. Each one of them includes precise deliverables with specific deadlines. AREA Food Safety

Electronic food certificates Transport Nanotechnologies E-Health

Oil and gas

Conformity assessment

KEY DELIVERABLES: Agreement on food safety bilateral cooperation, signed between the chief executives of SSA, SAGARPA, USDA and HHS. Capacity building workshops on US Food Safety for the Mexican industry. Design, development and implementation of the system to share Electronic Certificates for Plants and Plant Products. Coordinated early review of the new version of Mexico’s NOM 068 – on safety standards and procedures for commercial vehicles by SCT and DOT. Publication of Mexico’s “Guidelines for regulations on nanotechnologies to promote competitiveness and to protect the environment, as well as the health and safety of consumers” aligned with US principles. Cooperation between HHS and SSA for sharing electronic health records processes, the inventory on related educational material, and basic standard vocabulary available in each country. Agreement of Mexico and the U.S. related with the exploitation of hydrocarbons in the trans-boundary region of the Gulf of Mexico, including the commitment to adopt a series of common standards for activities performed in this area. Open communication with Mexican laboratories explaining available opportunities for receiving the National Recognized Testing Laboratory certification.

Source: Spanish.-http://www.economia.gob.mx/images/archivero/comunidad_negocios/plan_de_trabajo_ccr.pdf English.- http://www.whitehouse.gov/sites/default/files/omb/oira/irc/united-states-mexico-high-level-regulatory-cooperationcouncil-work-plan.pdf

OPINION INTERNATIONAL TRADE / OPINIÓN

Co-operation and Development) Regulatory Policy Committee.

PARTICIPANTS IN MEXICO’S PUBLIC CONSULTATION. Secretaría de Economía (SE)

Cluster de Electrodomésticos del Estado de Nuevo León, A.C.

Comisión Federal para la Protección contra Riesgos Sanitarios

Asociación Mexicana de la Industria de Tecnologías de Información (AMITI)

(COFEPRIS) Administración General de Aduanas, SAT

Consejo de Desarrollo Económico de Tijuana A.C.

Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y

Grupo Lattice

Alimentación (SAGARPA) Servicio de Administración Tributaria (SAT), SHCP

Asociación de Agentes Aduanales de Colombia, NL

Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT)

Secretaría de Comunicaciones y Transportes (SCT)

Conductores Mexicanos Eléctricos y de Telecomunicaciones S.A. de C.V. (CONDUMEX)

Congreso de la Unión

Confederación Nacional de Organizaciones Ganaderas (CNOG)

Comisión Nacional del Agua (CONAGUA)

Ingeniería y Verificación de Equipos y Sistemas de Telecomunicaciones SA de CV, (IVESTEL)

Secretaría de Salud (SSA)

Asociación Nacional Mexicana de Empresas Courier, A.C.

Comisión Federal de Electricidad (CFE)

Asociación de Agentes Aduanales de Nuevo Laredo, S.C.

Comisión Federal de Telecomunicaciones de México (COFETEL)

S.C Johnson and son, S.A. de C.V.

Comisión Nacional Bancaria y de Valores (CNBV)

British American Tobacco México, S.A. de C.V. (BAT México)

G Migoya Analitycs

Indicium Solutions, S.A. de C.V.

Floraplant, S.A. de C.V.

Cámara Nacional de la Industria de Productos Cosméticos (CANIPEC)

Colegio de la Frontera del Norte

Consejo Nacional de la Industria Maquiladora y Manufacturera de Exportación, A.C.

Interpuerto Monterrey

Consejo Mexicano de la Carne, A.C.

Asociación Mexicana del Transporte Intermodal, A.C. (AMTI)

Asociación Mexicana de Industrias Innovadoras de Dispositivos Médicos

Asociación Mexicana de la Industria Automotriz

Cargill de México, S.A. de C.V.

BASF Mexicana CA & C

Laboratorios Fermi, S. A. de C.V.

Cámara Nacional de la Industria de la Transformación

Consejo de Desarrollo Económico de Tijuana

AgroBIO México

S.C. Johnson and Son, S.A. de C.V

CONMÉXICO

Asociación Mexicana de Industrias de Investigación Farmacéutica

Nueva Generación de Manufacturas S,A, de C,V,

GE Internacional México, S. de R.L. de C.V.

Cámara Nacional de la Industria de Leche

Asociación Nacional de abogados de Empresa. Colegio de Abogados A.C.

Electrolux Comercial. S. A. de C.V.

OPINION INTERNATIONAL TRADE / OPINIÓN

PARTICIPANTS IN THE UNITED STATES’ PUBLIC CONSULTATION.

Advanced Medical Technology Association (AdvaMed)

Information Technology Industry Council

American Automotive Policy Council

Monsanto

American Council of Life Insurers

Motor & Equipment Manufacturers Association

American Meat Institute

National Electrical Manufacturers Association

Canadian Meat Council

National Potato Council

American Trucking Association

Northwest Horticultural Council

Amway

Pacific NorthWest Economic Region (PNWER):

Association of Equipment Manufacturers

Personal Care Products Council

Biotechnology Industry Organization (BIO)

Canadian Cosmetic Toiletry and Fragrance Association

Campbell Soup Company

Personal Care Product Association

Canadian American Business Council

Pharmaceutical Research & Manufacturers of America (PhRMA)

Canadian Gas Association

Research-based Pharmaceutical Companies (Rx&D)

Canadian Manufacturers and Exporters

Proctor & Gamble Mexico

Cargill

Sciessent

Caterpillar Inc

Spectra Energy Corporation

Consumer Electronics Association

Target Corporation

CropLife Canada

Toy Industry Association/ Canadian Toy Association

Driscoll’s

Underwriters Laboratories

Eastman Chemical Company

U.S. Chamber of Commerce

Engine Manufacturers Association & Truck Manufacturers Association

U.S. Meat Associations: Incorporates

European American Business Council

American Meat Institute

Express Association of America

National Meat Association

Fall Creek Farm

National Pork Producers Council

Grocery Manufacturers Association

U.S. Meat Export Federation

H-E-B Grocery

Western Growers Association

Cameron LNG

Sempra Energy Headquarters

EnergĂa Costa Azul

Termoelectrica de Mexicali

ECOGAS

Transportadora de Gas Natural

We believe the way we develop and operate energy resources, respect our environment, support our people and help our communities is fundamental to our success. www.SempraInternational.com

Sempra International is not the same company as the California utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra International is not regulated by the California Public Utilities Commission.

Reform in Mexico’s

Oil and Gas Sector: Unlocking the Potential

By Marcelo Mereles / Partner at EnergeA, Mexican Energy Consulting Firm / www.energea.mx

A OPINION ENERGY / OPINIÓN

fter achieving a robust rise in production from the late 1990s to the early 2000s, Pemex, Mexico’s State oil monopoly, has faced an equally pronounced drop in its hydrocarbon production due to a lack of investment in exploration activities, as well as delays in project execution. The fact that Pemex has often paid more than 100 percent of its profits in taxes has not helped its situation either.

The downstream sector is also in critical condition: no new refining capacity has been added since 1979, even while domestic gasoline and diesel demand grew at 3.5 and four percent per year, respectively, during 2003-10 alone. Pemex’s refining business unit faces considerable operational gaps and financial losses while its petrochemical sector is in shambles. Although crude oil production has stabilized in the last two years at around 2.5 million barrels per day (mmbd), it is still 26 percent lower than the 2004 production level of 3.4 mmbd. In addition,

Mexico faces the prospect of further reducing its oil exports and increasing its gas imports in the medium term, as several experts are predicting significant declines in the nation’s two largest fields, Ku Maloob Zaap and Cantarell. The country also faces a tough race to meet the growing demand for refined oil products and natural gas. While internal production stagnates and demand keeps growing, gasoline imports have reached 40 percent of total consumption, for example. Overcoming such challenges involves production, import and logistics aspects that will require large investments and strong execution in the years to come, as well as the involvement of hundreds of private companies, from consultants to suppliers of goods and services, and—if certain legal changes materialize—private oil companies. A reform enacted in 2008 opened greater possibilities for both Pemex and private

companies in Mexico, but this reform is insufficient to overcome the significant hurdles the country faces in providing an adequate energy supply for future economic growth. And, while some further changes can be accomplished relatively easily, the more sweeping reforms necessary to unlock the country’s remaining hydrocarbon potential would require constitutional modifications.

resources are estimated to be even greater than that; however, the remaining reserves and prospective resources are located in more difficult and challenging areas, such as deep waters or Chicontepec. Mexico has extracted most of its “easy oil” and must now face the prospect of greater technical difficulty and higher exploration and production costs to replace each additional barrel of easy oil.

The good news is that President Enrique Peña Nieto has signaled both during the presidential campaign and the transition period, that he is in favor of making the needed changes to the industry’s legal framework to unlock that potential. He singled out energy as one of the three most relevant areas of reform required by Mexico. Also, the fact that the PAN party has indicated it will continue supporting reform in the energy sector is an encouraging sign.

The current hydrocarbon model was formulated decades ago under very different circumstances and it is no longer suitable for this new era of more difficult and expensive oil. It has taken Mexico a long time to recognize this, as the country today has one of the most outdated legal and regulatory frameworks in the world, and has already faced some serious consequences for this.

Mexico has been endowed with considerable hydrocarbon wealth, most of it still untapped. The country’s current reserves (proven, probable and possible) are larger than historic accumulated production, and prospective

A new model is needed where Pemex can forge its own destiny, and where the utmost consideration is given to fostering a sustainable hydrocarbon industry that promotes national economic growth and maximizes revenue to enable Mexico to improve the welfare of its citizens. Thus, the bad news is that Mexico’s oil industry

OPINION ENERGY / OPINIÓN

CHANGING TIMES REQUIRE A NEW MODEL

crisis is man-made. The good news is that the solutions to this crisis are also within Mexicans’ reach if key players find a way to work together toward the common objectives stated above. TYPES OF REFORM AND NEW OPPORTUNITIES There are several possible reform scenarios at this point, each of which will bring different benefits to Pemex and to the development of Mexico’s oil and gas sector. On one hand, there are several simple regulatory changes that could enhance corporate governance in Pemex and do not require legal reforms. Such changes include improving the company’s procurement processes, as well as reducing Pemex’s oversight burden and creating an internal audit mechanism that reports to the director general and the board, like in any other corporation. Furthermore, the board’s ‘professional’ members should be truly independent, selected by a specialized committee via a merit-based process and not assigned as quotas to political parties. In order to be truly independent, these board members must not be full-time paid public servants, but industry professionals. And, with some minor legal changes, some valuable operational improvements could be implemented such as allowing the transportation of refined products by private companies via pipelines, in line with the rules applicable to natural gas since 1992. Another suggested reform would be to allow legal changes that could broaden private participation in non-core refining activities. This could involve creation of a maquila process for refining, in which private companies would convert crude and gas into refined products on Pemex’s behalf, while never taking ownership of the raw materials or products, in return for a margin-adjusted fee.

OPINION ENERGY / OPINIÓN

Legal changes could also remove Pemex from the public-sector budget, thus resolving most of Pemex’s budgetary problems. However, given that Pemex represents around 36 percent of federal tax income in Mexico, solving Pemex’s— and the industry’s—tax problems would require instituting large-scale fiscal reform that could widen the tax base and increase collection from other sectors, including the country’s considerable informal economy. The game-changing scenarios for the sector will require constitutional reforms. In broad terms, such reforms should enable Pemex to partner 1

with whomever it wants, for any type of project, for the amounts and in the proportions best suited to its business strategy.1 Such a change could open private investment opportunities in excess of $10 billion per year in Mexico’s oil and gas sector. There are some who argue for an even more radical reform in which private companies are allowed to participate in upstream activities without partnering up with Pemex. The debate on these issues is further complicated by the lack of differentiation between the owner of the hydrocarbon resources, which is the nation, and the operators who are allowed to extract and transform these hydrocarbons, which could be public or private firms. Once it becomes clear that oil remaining underground brings no benefit to a country and its people, and that any operator will compensate the nation for the extraction of its resources, the national debate should focus on the overall economic benefit of a reformed oil industry, regardless of how many operators exist. POSSIBILITIES FOR REFORM Constitutional reforms require complex political maneuvering as they must be approved by a two-thirds majority in both houses of Congress, plus more than one half of the local state legislatures, thus, the breadth of reform will ultimately depend on the political support that the executive will be able to gather behind the different proposals. If the current government is able to rally all of its party’s (PRI) lawmakers behind such reform and can garner the support of the PAN—and perhaps even of some moderate lawmakers from the left-leaning PRD—the chances of success are quite high; however, the support of some factions within the PRI may depend on the depth and scope of the desired reforms, thus the eventual reform bill itself will be the result of intense internal dealing, and may already contain relevant compromises by the time it is introduced in Congress. The coming weeks could be critical in these negotiations as a reform bill can be expected anytime from March to November of this year. Timing is important; a reform would take months to be fully implemented, and the effects on the economy would be felt at least one or two years after its legislative approval. The current administration is aware of this urgency and we will soon learn what its plans are as it seeks to unlock the potential of Mexico’s oil and gas wealth.

Any reform allowing private participation in upstream activities must be accompanied by a significant transformation of the sector’s tax regime, as the current system is confiscatory.

Duty Free Americas, Inc.: New Duty Free Store at San Diego International Airport

On December 1, 2012, Duty Free Americas (DFA) opened a new 1,200 square foot duty free store at San Diego International Airport. San Diego Mayor Bob Filner said the store opening is a “symbol of how we want to change San Diego. We want to be a world class city… with a world class airport.” San Diego County Regional Airport Authority said $2.3 billion dollars are spent each year by visitors who arrive by air in San Diego. Jet-setters can visit the new DFA store outside the security area of Terminal 2 East. Duty free shopping offers international travelers substantial savings on a wide variety of merchandise: high-end jewelry; luxury and casual watches; premium candy, liquor and tobacco; and cosmetics, fragrances, dinnerware, luxury gifts and accessories. Savings to travelers for duty-free merchandise ranges from 10 to 50 percent off retail prices. In general, items carrying high duty rates such as tobacco and liquor offer the best values—in the 50 percent off retail price range. DFA was acquired by the Falic Group—

Ribbon Cutting San Diego Airport.

brothers Simon Falic, Jerome Falic and Leon Falic—on October 11, 2001. Since the acquisition, sales at DFA’s stores have grown in the United States to exceed $600 million annually; global sales are closer to $1 billion. Under U.S. laws, duty free merchandise is available to international passengers before departing to a foreign country. Duty free laws vary from country to country. It is best to check with customs offices of the country of your destination to determine limits on the amount of duty free merchandise permitted per trip. Most countries impose restrictions on the quantity of duty free merchandise you can bring in. In the United States, to be eligible for duty free shopping you must: ◦Be leaving the U.S. usually for more than 48 hours. ◦◦Take the items with you into another country. As required by U.S. law, you will receive your items as you exit the country, either as you get on the plane or as you drive across the border.

Other Duty Free Americas’ retail operations worth exploring include: ◦◦Airport Division – 54 duty free stores in 14 international airports, (including the new store at San Diego International Airport). ◦◦Southern Border Division – operating under the brand name UETA, 34 duty free stores on the U.S.-Mexico border including seven in California: (five in the San Diego, San Ysidro, Calexico and Otay Mesa). ◦◦Northern Border Division – 29 duty free stores on the U.S.-Canadian border. ◦◦International – 25 duty free stores in Latin America and two duty free stores in Macao, affording the company insight into the preferences of the Latin and Chinese customers. ◦◦Falic Fashion Group – Animale, Jennifer Aniston, Penguin and Perry Ellis fragrances, hard candy and cosmetics. For more information on Duty Free Americas, visit www.dutyfreeamericas.com.

ADVERTORIAL / PUBLIREPORTAJE

San Diego Duty Free opening. Thella F. Bowens, President/CEO of the San Diego Airport; Bob Filner, San Diego Mayor and Simon Falic, Chairman Duty Free Americas

Gallรกstegui y Lozano, S.C.

MEMBER HIGHLIGHTS / MIEMBRO DESTACADO

Experience and Capabilities

Gallástegui y Lozano, S.C., is committed to exceptional client service, responsiveness, quality and consistent value. With great international capabilities and increased capacity, the Firm offers exciting possibilities for clients who want to successfully seize global opportunities.

For the convenience of clients, the Firm’s office in Mexico City is located in the highest-rated office building zone, and maintains state-of-theart telecommunications systems to maximize efficiency and technical servicing standards. ◦Areas of Practice ◦Mergers and Acquisitions ◦Corporate/Foreign Investment ◦Telecommunications ◦Commercial Arbitration ◦Government Law Practice ◦Project Finance ◦Real Estate ◦Banking and Financial ◦Ship Finance ◦Construction ◦Aviation ◦Antitrust ◦Health Care ◦Immigration ◦International Trade & Customs ◦Transportation ◦Licensing

Gallástegui y Lozano, S.C. is also substantially involved in other practice areas, such as administrative and rulemaking, general contracting and labor laws. The expertise of Gallástegui y Lozano, S.C., derives from the experience obtained through 28 years, which is able to provide clients the highest level of bilingual legal services with and impressive team of highly qualified and experienced professionals who understand and appreciate the complexity of the international and domestic legal practice.

MEMBER HIGHLIGHTS / MIEMBRO DESTACADO

allástegui y Lozano, S.C., is a Mexican law firm incorporated in 1985, which purpose is to render legal assistance in favor of any type of enterprises, but specially to multinational entities, directly involved with their corporate matters in Mexico, such as mergers and acquisitions, corporate governance, commercial arbitration, foreign investment, governmental affairs, banking and financing, telecommunications, pharmaceuticals, intellectual property, health care, project finance, real estate and public procurement.

New members to the United StatesMexico Chamber of Commerce

BINATIONAL MEMBERS Littler Mendelson P.C. www.littler.com Sector: Law/Legal Gardere www.gardere.com Sector: Law/Legal

CALIFORNIA REGIONAL CHAPTER Los Angeles, CA

NEW MEMBERS / NUEVOS MIEMBROS

Agencia Aduanal Adolfo Ayala Bejarano S.C. aniermbc.org Sector: Customs Agency

ANIERM Delegación Baja California aniermbc.org Sector: National Association of Importers and Exporters BUCHER www.bucherinc.com Sector: Contract Manufacturing & Logistics GRUPO LOGIX www.grupologix.com Sector: Customs Services Import and Export

Phoenix NAP www.phoenixnap.com Sector: IT

CME www.cmegroup.com Sector: Financial

Riverside Ventures NA Sector: Enterpreneur

Griffith Laboratories www.griffithlaboratories.com Sector: Food

Rollstone Int’l Hats www.twinstonehats.com Sector: Hats (manufacturer and, distributor)

Potash Corporation www.potashcorp.com Sector: Agroindustry

SourceLogistics www.sourcelogistics.net Sector: Logistics Technico TV www.technicotv.com Sector: Direct TV System Provider Trío América www.trioamericamusic.com Sector: Music VISTAinnova www.vistainnova.com Sector: IT Marketing MID-AMERICA CHAPTER CHICAGO, IL Cargill www.cargill.com Sector: Food

Turano Baking www.turanobaking.com Sector: Food SOUTHWEST CHAPTER DALLAS, TX Citi Bank www.citibank.com Sector: Banking

Verde Lighting www.verdeconstruction.com Sector: LED Lighting THE WOODLANDS-GULF COAST CHAPTER THE WOODLANDS, TX Catarino Reyna/dba Spirit of Texas Bank www.spiritoftexasbank.com Sector: Bank Cortes, Trino/dba BDO USA www.bdo.com Sector: Financial Cypressbrook Management Co. www.cypressbrook.com Sector: Property Mgmt/ Development

City of Dallas www.cityofdallas.com Sector: City Government

Doubletree Guest Suites Galleria www.hilton.com Sector: Hotel

DFW Minority Supplier Dev. Center www.mbda.dallas.com Sector: Dept. of Commerce

E-nnovations Technologies & Marketing www.ennotech.com Sector: IT

Nova Global Trade, LLC www.nova.globaltrade.com Sector: International Atty. & Consultant

Fuentes, Maria/ dba ET Transportation NA

Sector: Transportation Hereditas Consulting Firm NA Sector: Consulting Firm Lupe Martinez NA Sector: Insurance

Beamonte Investments www.beamonteinvestments.com Sector: Financial Services Conde Construction Inc. NA Sector: Architecture & Construction

Manny Steiner NA Sector: Property

Ennead Architects LLP www.condeny.com Sector: Architecture & Construction

Methodist Hospital www.methodisthospital.com Sector: Hospital

GFI Group www.gfigroup.com Sector: Financial Services

Texas Latino Leadership Roundtable of Mont. Cnty www.texaslatinoleadership. com Sector: Human Development

Happy Hearts Fund www.happyheartsfund.org Sector: Non-Profit

Whitney Bank www.whitneybank.com Sector: Bank NORTHEAST CHAPTER NEW YORK, NY

Littler Mendelson, PC www.littler.com Sector: Law Loteria Perfoming Arts www. loteriaperformingarts.com Sector: Dance Company

Yurintzy Estrada

GOLFO CHAPTER VERACRUZ, VER.

PACIFICO CHAPTER GUADALAJARA, JAL.

Fernando Quintal Construcciones S.A de C.V. ND Sector: Development

MGI agente de Seguros, S.A. DE C.V. www.marinersmexico.com Sector: Insurance ReTweeti www.retweeti.com Social Media PUEBLA CHAPTER PUEBLA, PUE. Francisco Javier Bautista Elivar ND Sector: Food Grupo Brossemi S de RL de CV ND Sector: Comercial

VALLE DE MÉXICO CHAPTER MÉXICO, D.F. AECOM Ingeniería, S.A. de C. V. www.aecom.com Sector: Consulting Battery Corp Inc. www.batterycorp.com Sector: Telecomunications MATC Servicios, S. de R.L. de C.V. www.americantower.com Sector: Telecomunications Mijares, Angoitia, Cortés y Fuentes, S.C. www.macf.com.mx Sector: Asesoría legal

Paul Hastings www.paulhastings.com Sector: Law

MEMBER DISCOUNTS Consult your regional chapter to obtain discounts:

VALLE DE MEXICO CHAPTER: · Holiday Inn Express & Suites Mexico City at the WTC · Four Seasons Hotel Mexico, D.F. · St. Regis Mexico City · NH Hoteles Mexico nivel nacional · Marquis Reforma Hotel · Marriott Reforma Mexico City · Plaza Suites Mexico City · International Meal Company Mexico THE WOODLANDS – GULF COAST CHPATER · The Woodlands Resort & Conference Center

LEON, GUANAJUATO · MEXICO PLAZA HOTELS Locations: Leon, Guanajuato, Irapuato, Salamanca, Celaya and Guadalajara. Coming soon: Aguascalientes, Silao y San Miguel de Allende MID-AMERICA CHAPTER · Aeromexico · United/Continental · American Airlines · Crown Paradise Resorts · Las Brisas Hotels

INTER-AMERICA CHAPTER · Interjet · Aeromexico · Sports Club CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA. · Aeromexico · Alaska Airlines · Benckmarkemail en Espanol · Agencia Aduanal Adolfo Ayala Bejarano · Correduria Publica No. 23 · Cima Designs · Lewis and Lewis Insurange Agency, Inc. · Todd Becraft Attorney at Law · Trio America

CHAPTER

EVENT

DATE

PLACE

FOR FURTHER INFORMATION

MARCH / MARZO PACIFIC NORTHWEST CHAPTER. SEATTLE, WA

Business Breakfast

gmichan@usmcocnw.org

Columbia Tower Club 701 Fifth Avenue, Floor 75. Seattle, WA 98104 Tijuana Hotel Lucerna

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Monthly Breakfast Tijuana

VALLE DE MEXICO CHAPTER. MÉXICO, DF. CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Mexico Energy Summit

6-7

W Mexio City

Mexican Pension fund System Conference

San Diego, CA

“abriones@bnamericas.com m_cuellar@usmcoc.org” 1 (310) 922 0206

GUANAJUATO CHAPTER. LEÓN, GTO.

Consultant training course on Cleaner Production and Energy Efficiency

Salmanca, Silao en Gto

splopez88@hotmail.com

MID-AMERICA CHAPTER. CHICAGO, IL

Mexico Update: a review of fiscal, labor and political reforms under the new government

Baker & McKenzie

blanca.berthier@usmcoc.org

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

15 Annual Mexico Economic Review and Political Outlook 2013

1940 Century Park East, Los Angeles, CA 90067

1 (310) 922 0206

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA.

The First 100 days of the New Administration in Mexico and the United States

1940 Century Park East, Los Angeles, CA 90067

1 (310) 922 0206

THE WOODLANDS-GULF COAST CHAPTER. THE WOODLANDS, TX

Networking Mixer

Americas West Gray

SOUTHWEST CHAPTER. DALLAS, TX

Mexico Tax Reform

Petroleum Club

GUANAJUATO CHAPTER. LEÓN, GTO.

Energy efficiency in SMES

TBD

Guanajuato State

swusmx@netzero.com / 1 (214) 651 4300 splopez88@hotmail.com

GUANAJUATO CHAPTER. LEÓN, GTO.

Low Carbon. Certification Program for hotel sector

TBD

León, Gto.

splopez88@hotmail.com

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Monthly Breakfast Tijuana

Tijuana Hotel Lucerna

1 (310) 922 0206

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Mexican Private Equity & Vernture Capital Industry, Silicon Valley

Silicon Valley TBD

1 (310) 922 0206

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Meeting discussion with Consul Garcia and business in the Orange County Area

Orange County

1 (310) 922 0206

GUANAJUATO CHAPTER. LEÓN, GTO.

Trade Forum

León, Gto.

splopez88@hotmail.com

PACIFIC NORTHWEST CHAPTER. SEATTLE, WA

Business Breakfast

gmichan@usmcocnw.org

SOUTHWEST CHAPTER. DALLAS, TX

Airline Global Connectivity

Columbia Tower Club 701 Fifth Avenue, Floor 75. Seattle, WA 98104 DFW

VALLE DE MEXICO CHAPTER. MÉXICO, DF.

Diversitication for foreing trade

Hotel Marriot Reforma

swusmx@netzero.com / 1 (214) 651 4300 m_cuellar@usmcoc.org

GUANAJUATO CHAPTER. LEÓN, GTO.

Low Carbon. Certification program for differents productive sectors

TBD

León, Gto.

splopez88@hotmail.com

SOUTHWEST CHAPTER. DALLAS, TX

SMU

Strasburger

GUANAJUATO CHAPTER. LEÓN, GTO.

Consultant training course on Cleaner Production and Energy Efficiency Cinco de Mayo Celebration, event organized with French Tuesdays

León, Gto.

swusmx@netzero.com / 1 (214) 651 4300 splopez88@gmail.com

TBA

1 (310) 922 0206

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Monthly Breakfast Tijuana

TBA

1 (310) 922 0206

GUANAJUATO CHAPTER. LEÓN, GTO.

Efective time management course

13-14

León, Gto.

splopez88@gmail.com

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Preisidential Luncheon and Good Neighboor Awards Gala 2013

15-17

Washington, D.C.

1 (310) 922 0206

VALLE DE MEXICO CHAPTER. MÉXICO, DF.

Mexico Minning Summit

22-23

Hotel Camino Real Polanco

“abriones@bnamericas.com m_cuellar@usmcoc.org” 1 (310) 922 0206

BINATIONAL EVENT

Annual Meeting, Conference and Good Neighbor

22-23

Washington, D.C.

gerardo@usmcoc.org

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

“Sixth Celebration of the International Trade Community in Los Angeles”

Mexican Consultate in Los Angeles, CA

gmichan@usmcocnw.org

PACIFIC NORTHWEST CHAPTER. SEATTLE, WA

Business Breakfast

splopez88@hotmail.com

GUANAJUATO CHAPTER. LEÓN, GTO.

Low Carbon. Certification program for differents productive sectors

TBD

Columbia Tower Club 701 Fifth Avenue, Floor 75. Seattle, WA 98104 León, Gto.

1 (310) 922 0206

APRIL / ABRIL

MAY / MAYO

UPCOMING EVENTS / PRÓXIMOS EVENTOS

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA