Alliance 19

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EDITORIAL COUNCIL UNITED STATES - MEXICO CHAMBER OF COMMERCE Albert C. Zapanta, President & CEO, Binational Headquarters; Francisco López Espinoza, CEO, Grupo Gráfico Multicolor; Eric Rojo, Vice-President/ Mexico Liaison; Joseph R. Chapa, Vice-President, International Trade Development Centers; Gabriela Kenny, Director of Communications; Cecilia López, Publishing Manager; Jill Martínez, publisher.

Editorial

PUBLISHING COORDINATORS Executive Director PROMEXE Rafael López Rivera rafa.lopez@multicolorig.com Director of Communications Gabriela Kenny gabriela.kenny@usmcoc.org Publishing Manager Cecilia López ceci.lopez@usmcoc.org

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

EDITORIAL CONTRIBUTORS Jill Martinez Gabriela Kenny Blanca Berthier Susanna Werner Gabriela Michan Pete Garcia

Claudia Vidal Andres Quiala Marianna Rossell Soll Sussman Josie Orosco

PRINTED BY

Dear Friends,

I

t is exciting to share the 40th Anniversary of the U.S.-Mexico Chamber with all of you through this edition. It has been four decades of hard work and collaboration with multiple partners to increase the mutual understanding between our countries; to build bridges to foster trade, investment and joint ventures; and to contribute to the economic development and wellbeing of our nations by addressing issues related to border security, transportation, environment, energy, education and cultural awareness, to mention only a few.

We have actively participated in the construction of the most successful trade partnership in the world: NAFTA, the largest free trade area, which now links 450 million people, and produces an annual average of $ 17 trillion worth of goods and services.

It has been 20 years since the agreement was signed, and while successful, there are new challenges and opportunities ahead, and we look forward to continuing our work as Ambassadors of Good Business.

We have not been alone in this longtime effort. We want to take this opportunity to thank our current and past members, our friends at the numerous government offices we have worked together with, including ambassadors and presidents from Mexico and the U.S., whom we have had the honor to host in our events.

For advertising inquiries, contact: Rafael López rafa.lopez@multicolorig.com Executive Director PROMEXE Gabriela Kenny gabriela.kenny@usmcoc.org Director of Communications Cecilia López ceci.lopez@usmcoc.org Publishing Manager ©JuanCarlosMorales Presidencia de la República - México

We also want to express our gratitude to the many private and public institutions, universities, research centers, foundations, fellow chambers of commerce and numerous supporters from both countries who have made possible the accomplishments of the past 40 years.

Finally, I speak on behalf of all of us at the USMCOC, when I say that, as we move into the next decade of service, we recommit to our mission to strengthen the relationship between our countries. I ask you to join us in that goal. ¡Felicidades y saludos!

ALLIANCE is a quarterly publication of the United States-Mexico Chamber of Commerce and Promotora Mexicana de Ediciones S.A. de C.V. (PROMEXE), 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 Gran Formato, S.A. de C.V. Av. Jose Maria Chavez No. 3408, Ciudad Industrial; Aguascalientes, Ags., Mex. Specifications: Total production; 3,000 units, covers: couche paper 135 grs. Varnish UV, interiors: couche paper 135 grs. Impression: offset full color.

Sincerely

Albert Zapanta

President & CEO

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.

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CHAPTER OFFICES

OFICINAS DEL CAPÍTULO

OF INTEREST

DE INTERÉS

4 6

THE COVER

Forty Years and Counting...

OPINIÓN

BINATIONAL EVENT EVENTO BINACIONAL

20 26

OPINION

BREVES

8 14

ARTÍCULO DE PORTADA

BRIEFS

CHAPTER ACTIVITIES

ACTIVIDADES DEL CAPÍTULO

36 • Re-Emergence of the Mexican Stock Exchange as a Financing Alternative in Mexico • Building a Mexico-U.S. Alliance in the Water Arena: Synchronizing Policies and Involving the Private Sector • Two Nations Indivisible: Mexico and the United States • Mexico’s Oil and Gas Industry Potential

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MEMBER HIGHLIGHTS MIEMBRO DESTACADO

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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

Gabriela Kenny Director of Communications gabriela.kenny@usmcoc.org Tel: (703) 752 4751 x 107 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

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

California Regional Chapter Los Angeles, CA Jim MacLellan President Marlen Marroquin Executive Director 1800 Century Park East Suite 300 Los Angeles, CA 90067 Tel: (310) 598 4188 marlen@usmcocca.org

Valle de México Chapter Mexico City Jose Garcia Torres President 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

Noreste Chapter Monterrey, N.L. Dr. Eric W. Gustafson President 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

Mid-America Chapter Chicago, IL Gery Chico President 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

Southwest Chapter Dallas, TX Vincent Chapa President 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

Pacífico Chapter Guadalajara, Jal Francisco Plancarte y García Naranjo President Pedro Fernando Linares Executive Director Mar Mediterráneo 1259 Colonia Jardines del Country Guadalajara, Jal. C.P.: 44620 Tel: (33) 3817 1678 pedro.linares@usmcoc.org

Puebla Chapter Puebla, Pue. Fernando Treviño President Vidaur Mora Executive Director 31 Poniente No. 4128 2-B Col. Reforma Sur Puebla, Pue. 72160 Tel: (222) 249 8828 Fax: (222) 249 2361 puebla@usmcoc.org www.usmcocpue.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 gabriela.kenny@usmcoc.org

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

Guanajuato Chapter León, Gto. Joseph Ramiro Chapa García President Sergio Ponce López Executive Director Blvd. Campestre No. 1215, Int. 12 Col. Panorama León, Gto. 37160 Tel: (477) 779 5670 Fax: (477) 779 5671 sergio.ponce@usmcoc.org

Aguascalientes Chapter Aguascalientes, Ags. Jaime del Conde Ugarte Presidente Rodolfo Rodríguez Casillas Executive Director Av. Independencia 1602 Col. Fátima Aguascalientes, Ags. Tel.: (449) 914 6863 y (449) 153 3553 www.usmcocags.com.mx

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

The Woodlands - Gulf Coast Chapter, The Woodlands, TX Ronda Butler-Harkey President Pete Garcia Executive Director 10077 Grogan’s Mill Road, Ste. 530 The Woodlands, TX 77380 Tel: (713) 854 1577 pete@chambergc.org

Golfo Chapter Veracruz, Ver. Andres Quiala President 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 veracruz@usmcoc.org

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

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

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

Michoacan Chapter Morelia, Mich.

Nick Ortiz President nick.ortiz@usmcoc.org Lucy Chávez Executive Director usmcocmich@gmail.com Melo 166-B Morelia Michoacan C.P. 58000 Tel: (443) 353 2927

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CHAPTER OFFICES / OFICINAS DEL CAPÍTULO

BRI

EFS

Now Your Trademark Registration Can Be Internationally Extended

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n February 2013, the Madrid Protocol came into effect. The Madrid Protocol is one of two treaties comprising the Madrid System for international registration of trademarks.

The Protocol states that the exclusivity protection of the trademark that identifies a company’s products and services is extended internationally to include the territory of the 88 countries that are affected by the Madrid Protocol. By completing a single application, all 88 countries agree to the trademark protection, saving time and paperwork, resulting in international protection.

It is recommended that, from the beginning, the trademark use shall be registered for international protection by applying the Madrid Protocol.

According to the Web site www.uspto.gov/trademarks/ law/madrid/index.jsp, “The protocol is a [filing treaty] that provides a cost-effective and efficient way for trademark holders—individuals and businesses—to ensure protection for their marks in multiple countries through the filing of one application with a single office, in one language, with one set of fees, in one currency.

“Moreover, no local agent is needed to file the application.

While an international registration may be issued, it remains the right of each country or contracting party designated for protection to determine whether or not protection for a mark may be granted. Once the trademark office in a designated country grants protection, the mark is protected in that country just as if that office had registered it. The Madrid Protocol also simplifies the subsequent management of the mark, since a simple, single procedural step serves to record subsequent changes in ownership or in the name or address of the holder with World Intellectual Property Organization’s International Bureau. The International Bureau administers the Madrid System and coordinates the transmittal of requests for protection, renewals and other relevant documentation to all members.”

BRIEFS / BREVES

For additional information, read the report The Promulgating Decree of Protocol Pertaining to Madrid’s Understanding Related to Trademarks International Registration at http://www.inta.org/Advocacy/ Documents/INTAMadridProtocolUSImpact.pdf

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Submitted by Moore Stephens Orozco Medina, S.C., Certified Public Accountants and Business Advisors.

Mondragon Corporation’s Credit Cooperative Renamed Laboral Kutxa

I

n March of 2012, Mondragon Corporation announced the beginning of conversations between cooperative banks Caja Laboral and Ipar Kutxa with an eye toward merging the two with them to develop banking model based on the values and principles of cooperativism.

The sum of the two institutions will enable the new institution to corner significant market shares within the banking sector in the Basque Country and Navarre.

More than 750,000 people in the Basque Country will already be customers of the cooperative, with this figure exceeding 110,000 in the case of Navarre. The total number of customers, including all the other autonomous communities in which Caja Laboral is already operating, will surpass the figure of 1,300,000 people.

The cooperative bank will become a model that seeks maximize communication and proximity with customers, to play a key and necessary role in the new financial scenario, collaborating from a different perspective in economic and social development.

In short, and faced with the restructuring of the financial system, the merger seeks to reinforce “a different approach to banking,” providing an alternate response based on its employees as the projects’, member-owners. It will foster personal values and boost involvement in management, based on criteria of responsible banking and social engagement.

Mondragon Corporation is the embodiment of the cooperative movement that began in 1956, the year that witnessed the creation of the first industrial cooperative in Mondragón in Spain’s Basque Country; its business philosophy is contained in its corporate values: cooperation, participation, social responsibility and innovation.

A

fter having secured rights to almost 150 acres in its first phase, Yucatan Industrial Parks (YIP) is now ready to invest in phase two which will complete the infrastructure. This investment will allow YIP to provide electricity, lighting, water, telephony and communications for the lots.

Yucatan Industrial Parks is certified by the Mexican Official Norm of Industrial Parks NMX-R046SCFI-2011. An industrial park is “ready to use” industrial land because it offers all the infrastructure, permits and other services required for the immediate operation of any plant, development or distribution center.

◦Internal regulations, green areas, water treatment plants, fire protection systems, internal sidewalks and roadways, signals, parking lots and public lighting, among others. ◦Must be an important element for the urban planning for the cities, in order to have more rational use of the space, the water and the electric power, contributing to the strategies for the region’s sustainable industrial development ◦Certainty on the property of the land which guarantees: - Certainty on the availability of public infrastructure.

- Certainty on the permits for industrial operations.

- The location close to the country’s main transport facilities and close to human resources and educational centers.

- The internal protection of tenants and the infrastructure permanent maintenance.

The certification guarantees the following:

Some information available from Grupo Rio San Juan.

BRIEFS / BREVES

Investment in the Second Phase of the Yucatan Industrial Park

BUILDING A BETTER AIRLINE, NOT JUST A BIGGER ONE. DELTA CONGRATULATES THE US-MEXICO CHAMBER OF COMMERCE AND ITS PRESIDENT, ALBERT ZAPANTA.

DELTA.COM

7

The U.S.-Mexico

Border Energy Forum

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op corporate executives and government officials will target key energy issues affecting northern Mexico and the southwest United States when they meet for the 20th anniversary of the U.S.-Mexico Border Energy Forum to be held in San Antonio, Texas from November 6-8, 2013.

in smart grids, electric transmission and energy efficiency in buildings and water systems; and how to obtain project financing,” stated Texas Land Commissioner Jerry Patterson.

The U.S.-Mexico Chamber of Commerce and the U.S.-Mexico Cultural and Educational Foundation are members of the organizing committee for the Forum along with the Border Environment Cooperation Commission, the North American Development Bank, the Energy Council and the Texas General Land Office, founder of the conference.

More than 300 energy producers, industrial and commercial energy consumers, representatives of local, state and federal governments, financial institutions, research universities, environmental organizations and trade associations from the United States and Mexico are expected to attend the Forum. All sessions will be bilingual with simultaneous interpretation. A tour of cutting-edge clean energy projects is planned at the conclusion of the conference.

“The Border Energy Forum helps private and public sector leaders by offering them strategic insights on how to profit from energy projects involving natural gas and renewable energy; how to establish partnerships including cross-border interconnections for natural gas and electricity; how to encourage innovation

The Land Office founded the Forum in 1994 to call attention to the need to develop a secure, sensible energy supply for the region and encourage twin goals of economic development and environmental protection. The Forum has alternated each year between U.S. and Mexican cities in border states and

has met at least once in each of the 10 border states. It attracts participants from those states as well as from Mexico City and Washington, D.C. Last year’s Forum was held in Hermosillo, Sonora.

The keynote speaker at last year’s Forum, U.S. Ambassador Anthony Wayne, told participants: “Access to reliable, sustainable, and affordable energy is inextricably connected to increased economic development and a higher quality of life… but there is no single solution to meet the growing energy security concerns as demand for energy in our countries and around the world climbs. All options must be on the table.”

Sonora Governor Guillermo Padrés Elías added, “Renewable energy is a transcendental theme for my state. We all need more energy and we need to find new resources, because without energy, we won’t have economic development.

My vision is to establish an investmentfriendly environment to attract companies to develop new energy resources.”

The Border Energy Forum is a non-profit event made possible through sponsorships and grants. For more information, visit www.borderenergyforum.org

OF INTEREST / DE INTERÉS

The post-Forum energy tour showcased the sustainability features of the Holcim Apasco cement plant in Hermosillo which began operations in 2011. It is designed for utility, economy and environmental performance. Holcim Apasco is the second largest cement producer in Mexico.

8

Guillermo Padrés Elías, Governor of Sonora, announced the state’s plans to attract investments in solar energy during the opening plenary session of Border Energy Forum XIX. Also pictured are Julian Willenbrock Ahumada, Director General, Enerclima; Louis Renaud, Deputy Commissioner Energy Resources, Texas General Land Office; The Honorable Earl Anthony Wayne, United States Ambassador to Mexico; Maria Elena Giner, General Manager, Border Environment Cooperation Commission; Brian Castelli, Executive Vice President for Programs and Development, Alliance to Save Energy; and Lic. Moisés Gómez Reyna, Secretary of the Economy, State of Sonora.

NHLA Leaders Join in White House Meeting to strengthen Relations and advance policies impacting Latinos in the Americas

P

resident and CEO of the U.S.-Mexico Chamber of Commerce, and treasurer of National Latino Leaders Agenda (NHLA) Al Zapanta and eight other members of NHLA, joined in a closed door meeting with President Barack Obama and Vice President Joe Biden on the afternoon of April 29 to discuss key priorities and concerns in advance of the President’s trip to Mexico and Costa Rica. It was the President’s fourth trip to Mexico, his sixth trip to the region and an important opportunity to reinforce the deep cultural, familial, and economic ties that so many Americans share with Mexico and Central America.

At the meeting, the President spoke of his vision for the Americas as a region of shared opportunity and emphasized that immigration reform continues to be a top legislative priority this year.

In addition to Zapanta were Hector Sanchez, NHLA Chair and Executive Director of LCLAA; Brent Wilkes, NHLA Vice-Chair and National Executive Director, LULAC; Janet Murguia, President and CEO, NCLR; Javier Palomarez, President & CEO,U.S. Hispanic Chamber of Commerce (USHCC); Yanira Cruz, President and CEO, National Hispanic Council on Aging; Arturo Vargas, Executive Director, NALEO Educational Fund; Tom Saenz, President and General Counsel, MALDEF; and Jose Calderon, President, Hispanic Federation.

Sanchez continued, “[During our meeting], we commended him for his commitment to seeing immigration reform move forward and for his nomination of Thomas Perez as Labor Secretary. We also spoke directly about the need to keep working together to advance critical domestic and foreign policy issues affecting the Western Hemisphere—ranging from immigration reform and the negative impact of deportations on families in the region, to labor rights, to the need to foster shared educational and economic opportunities, to the importance of ensuring better representation of Latinos in key federal decision-making roles. As the President travels to Mexico and Costa Rica, we hope he will heed our advice and use this opportunity to further build his relationship with Latinos both in the U.S. and abroad.”

“We were pleased to have the opportunity to talk with President Obama and Vice President Biden for nearly an hour about key Latino priorities. We are heartened by the President’s attention to our concerns and his commitment to continue to strengthen his relationship with the Latino community and its leaders,” said Hector Sanchez, NHLA Chair and Executive Director of LCLAA.

“President Obama and Vice President Biden were very attentive to the trade and economic issues between our countries, especially as it relates to the Trans Pacific Partnership, the EU trade talks and small and medium size business supply chain integration.” said Al Zapanta, President & CEO of the U.S.-Mexico Chamber of Commerce and Treasurer of NHLA.

Established in 1991, the National Hispanic Leadership Agenda (NHLA) brings together Hispanic leaders to establish policy priorities that address, and raise public awareness of, the major issues affecting the Latino community and the nation as a whole.

For more information, visit www.nationalhispanicleadership.org.

OF INTEREST / DE INTERÉS

SOURCE: OFFICIAL WHITE HOUSE PHOTO BY PETE SOUZA

USMCOC’s Zapanta, Latino Leaders, Meet with President Obama in Advance of President’s Trip to Latin America

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PRESIDENCIA DE LA REPÚBLICA

Bilateral Meeting between President Peña Nieto and President

Barack Obama

O

OF INTEREST / DE INTERÉS

n the invitation of President Enrique Peña Nieto, President Barack Obama traveled to Mexico City on May 2 and 3 to discuss the broad range of bilateral, regional and global issues that link the United States and Mexico, and affect the daily life of citizens from both countries. On the basis of their positive initial meeting in Washington, D.C. last November, the two presidents renewed their commitment to relations between Mexico and the United States.

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With a four-year horizon in which their respective presidencies will coincide, the two leaders underscored the importance of harnessing existing opportunities, such as the enthusiasm and optimism derived from a new stage in bilateral relations. The presidents highlighted the strategic importance of bilateral relations and expressed their desire to generate even greater cooperation between their two nations.

Specifically, the presidents focused on: 1) Economic Competitiveness; 2) Links Between Both Societies;

3) Leadership in Regional and Global Issues; and 4) Public Safety.

Economic Competiveness The foundation of the successful relationship between Mexico and the United States is the trade and investment flow that creates jobs in both countries. Bilateral trade totaled nearly $500 billion in 2012.

The two presidents agreed about the need to continue to forge a close, productive economic relationship that will increase competitiveness between their nations and create greater opportunities for trade and investment. To this end, they decided to established a High-Level Economic Dialogue, which will be conducted at the ministerial level and will concentrate on promoting competitiveness, productivity and connectivity; fostering economic growth and innovation; and jointly exercising global leadership.

The leaders expect that the first meeting of the dialogue, scheduled to take place this year, will include representatives of the corresponding departments of both governments

and collaborate with key actors, particularly the private sector.

The leaders discussed the importance of joint work between Mexico and the United States, together with their Canadian partners, to turn North America into the most dynamic and competitive region in the world. They agreed to seek the successful conclusion this year of the Transpacific Strategic Economic Partnership Agreement, an instrument with high standards and 21st century provisions that significantly buttress the North American Free Trade Agreement.

They also repeated their commitment to the solution of specific trade agreements between their countries and their interest in maintaining close coordination in other key commercial negotiations.

Obama and Peña Nieto also highlighted the importance for both countries to have a safe, efficient shared border.

They took note of the recent meeting of the Bilateral Executive Committee for the Administration of the 21st Century Border, the first during President Peña Nieto’s administration, and agreed to support key projects and initiatives to improve infrastructure; promote local community efforts; facilitate the safe, legitimate flow of trade and persons; and increase cooperation for the enforcement of laws along the border.

The presidents welcomed the positive

Both presidents expressed their support of the US government initiative, “The Force of 100,000 in the Americas” as a means of increasing academic mobility between Mexico and the United States.

President Obama declared that the twoparty migratory bill recently submitted to the U.S. Senate is largely in keeping with the principles he has repeated indicated. He confirmed his commitment to a common sense migratory reform that will institute a fair, effective migratory system to match the legacy of the United States as a nation of laws that recognizes the extraordinary contributions of immigrants, including generations of immigrants from Mexico to make the United Nations a strong, vibrant nation.

President Peña Nieto hailed President Obama’s efforts to promote this issue and confirmed the Mexican government’s commitment to supporting the welfare of Mexicans residing abroad.

Leadership in Regional and Global Issues The presidents highlighted the importance of cooperation between their countries in regional and international issues. These include job creation through sustained economic growth, the protection of human rights, gender equity, democratic governance and coping with the challenges posed by climate change. They stressed

the importance of the Alliance for an Egalitarian Future, which Mexico will formally join, as a multilateral effort to increase women’s economic empowerment and political participation.

As part of their commitment to work together in Central America and the hemisphere, the two leaders took note of the Memorandum of Understanding on international cooperation recently signed by the Mexican Agency of Cooperation for Development of the Secretariat of Foreign Affairs (AMEXCID) and the United States Agency for International Development (USAID) which will promote joint activities linked to development and cooperation with third countries. The two presidents also confirmed their support of a greater interconnection of electric networks in the Americas, for example through the Connecting the Americas Initiative 2022 announced at the Sixth Summit of the Americas.

Public Safety The presidents confirmed their commitment to acting as jointly

responsible partners through a renewed collaboration effort for public safety.

President Peña Nieto mentioned the importance of ensuring a Mexico in Peace as one of the five pillars of his government strategy as well as crime prevention by addressing the conditions that contribute to its occurrence and the strengthening of institutions and the rule of law.

President Obama repeated the United States’ support of Mexico’s efforts, particularly the transition to a system of accusatory justice that is transparent, effective and efficient. The presidents also emphasized the importance of continuing to take actions against transnational organized crime and to take further steps to combat illegal financial flows and arms trafficking as well as measures to reduce drug consumption and its consequences.

President Obama and President Peña Nieto will remain in close contact over these and other issues of mutual interest in order to continue promoting the partnership between their nations.

OF INTEREST / DE INTERÉS

The presidents agreed to establish a Bilateral Forum on Higher Education, Innovation and Research. The forum will meet this year and convene representatives of the government, the academic sector and civil society to develop a shared vision of educational cooperation and propose specific short and medium-term initiatives to promote bilateral collaboration and policy coordination.

PRESIDENCIA DE LA REPÚBLICA

Links Between Both Societies The two leaders stressed the broad, deep links between the two countries and the importance of these links for the prosperity and culture of both societies.

PRESIDENCIA DE LA REPÚBLICA

steps that the U.S. Congress is taking to implement an agreement on the transborder hydrocarbon deposits in the Gulf of Mexico, which will increase the energy security of North America and promote the responsible management of the Gulf of Mexico by the two countries.

Both are expecting the full implementation of the Agreement.

Source: Presidencia de la República

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Mexican Federal Labor Law Six Months Later

A

new federal labor law which governs all employer/ employee relationships within the country was passed in Mexico in November 2012. The law, which became effective December 1, 2012, provides for some positive changes in the manner in which companies may contract employees. The law also adds some additional requirements and rules that companies must follow if they wish to operate under the common captive employee leasing structure in Mexico.

OF INTEREST / DE INTERÉS

Many Mexican companies have historically operated using a dual entity structure. Such structures normally include an operating company, which holds all of the company’s assets, completes sales to customers, etc., and a captive employee leasing entity, which houses all employees and provides services to the operating company. This structure is utilized to allow the company to manage the amount of employee profit sharing otherwise mandated by federal labor law.

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The following are some ways we have seen companies change their structure to better comply with the new rules: ◦The operating and employee leasing companies are restructured such that they have separate and different ownership.

This is to support the fact that

they are truly separate operations. ◦The operating and employee leasing companies should have very clear corporate purposes that do not overlap. The operating company should be established to complete its manufacturing, sales, or other activity but not to employ individuals.

The employee leasing company’s corporate purpose may be changed to clearly state that it exists to provide services to operating companies. ◦The two-entity structure should not be utilized in an abusive fashion with the intent to avoid payment of proper social security taxes or other payroll tax contributions.

We have also seen companies make limited operational changes to better comply with the new law. This includes employing higher level employees, such as directors, in the operating entity. In most cases higher level positions (such as directors) are not eligible for profit sharing under Mexican law. As such, this individual would serve as proof that the operating company can operate independently from the captive leasing company.

While the consequences of noncompliance remain somewhat unclear, they would appear to include financial penalties and an effective combination of the two companies for the purposes of calculating the employee profit

sharing, social security, and other contributions. It is also unclear how long current companies operating in this fashion will have to bring their structures in compliance with the new rules.

Companies seeking to expand their operations into Mexico in the near future are cautioned against moving too aggressively into a two-entity structure without the proper support. Until further regulations and standards are put into place to help determine the best structure to establish, we urge caution in this area. There are also other structures and options available to obtain the same goal of managing a company’s profit sharing liability.

On the positive side, the new law also provides for various categories of workers, including temporary workers and workers hired for a specific time period. It appears that these separate categories will allow employers to hire staff members on a temporary basis without incurring severance liabilities, penalties that exist in relation to hiring individuals under “normal” employee status.

We hope that regulations will be released in the near future that will provide additional clarity on the implementation of the new law.

As interpretations are released, uncertainty will begin to subside, and the best structural options will become more apparent. As always, it is best practice to seek the appropriate professional assistance when venturing into new markets.

SCOTT SNECKENBERGER PARTNER, PLANTE MORAN

MORE LAPTOP OR JUST MORE LAP?

OF INTEREST / DE INTERÉS

MORE WORKSPACE WITH ECONOMY COMFORT ™.

DELTA.COM

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Annual Conference,

Binational Board of Directors Meeting and Good Neighbor Awards Gala 2013 “U.S.-Mexico 2013: The Chamber at 40, NAFTA at 20�

BINATIONAL EVENT / EVENTO BINACIONAL

Mexican Ambassador to the U.S. Eduardo Medina Mora, USMCOC President and CEO, Albert Zapanta, and Ambassador of the U.S. to Mexico, Anthony Wayne.

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This year the USMCOC proudly celebrates 40 years of existence and there could not have been a better commemoration than the Annual Conference and Good Neighbor Awards Gala held in Washington D.C. held May 22-23. The conference brings together chamber members, board members and distinguished guests from the private and public sectors from both Mexico and the U.S. The two-day event is capped by the Gala held at the impressive Organization of American States building. During the Gala, individuals who have made significant contributions to U.S.-Mexico relations, are presented the highly-regarded awards.

The meetings were held at the offices of Jones Day law firm in the heart of Washington, D.C.

histories and voiced their dedication to enhancing the understanding and collaboration between the two countries.

DAY TWO WORKFORCE MOBILITY AND IMMIGRATION ECONOMIC IMPACT

BRIEFING ON PRESIDENT OBAMA’S VISIT TO MEXICO

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he conference opened with a briefing on President Barack Obama’s trip to Mexico earlier in the month presented by Ricardo Zuniga, Special Assistant to the President and Senior Director for Western Hemisphere Affairs at the National Security Council (NSC) and Gregory K. Shiffer, Director for North America at NSC. They shared with board members and chapter directors highlights of the visit during which President Obama and President Enrique Peña Nieto discussed a broad range of bilateral issues, including: security, trade, education, energy and intellectual property.

They agreed to establish a High Level Economic Dialogue mechanism; a Bilateral Forum on Higher Education, Innovation and Research; and welcomed

the Memorandum of Understanding (MOU) signed between the U.S. Agency for International Development (USAID) and the Mexican Foreign Secretariat’s Agency for International Cooperation and Development (AMEXCID).

Both presidents committed to keep working on the implementation of the U.S. -Mexico Transboundary Hydrocarbons Agreement, and to conclude a high-standard Trans-Pacific Partnership. There was also time in the briefing for the members of the board to express their concerns and bring ideas to the table which Zuniga agreed to present to President Obama.

Next on the agenda was a welcoming reception for USMCOC’s Honorary Presidents Ambassador of Mexico to the U.S. Eduardo Medina Mora and Ambassador of the U.S. to Mexico Earl Anthony Wayne. In their remarks, both congratulated the Chamber on its 40th anniversary. They shared their personal

Following Papademetriou, Mexican Congressman Antonio Cuellar Steffan, Secretary of the Justice Commission, spoke on Mexican legislative reforms: Ley de Amparo (Law of Amparo), labor, education and telecommunications.

Steffan, a longtime supporter of the USMCOC, explained the meaning of the Constitutional Amendments that paved the way for important legislative changes that are currently occurring in Mexico in the areas of judicial processes, work conditions and educational standards.

Demetrios Papademetriou, President of the Migration Policy Institute.

Mexican Legislative Reforms: Ley de Amparo, Labor, Education and Telecommunications Panel. (From left to right) Mexico’s Federal Congressman Antonio Cuéllar Steffan, Secretary of the Justice Commission, and Alberto de la Parra, partner of Jones Day law firm.

On that same panel was Alberto de la Parra, partner at Jones Day who commented on the significance of the telecommunications reforms which will allow foreign participation of up to 100 percent in telecommunication and satellite communication services, and up to 49 percent in radio and

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Ricardo Zuniga, Special Assistant to the President and Senior Director for Western Hemisphere Affairs at the National Security Council, during the White House Briefing on President Barack Obama visit to Mexico.

The second day began with a keynote entitled, “Workforce Mobility and Immigration Economic Impact,” presented by Dr. Demetrios Papademetriou, President of the Migration Policy Institute.

Papademetriou reflected on the importance of changing traditional assumptions about immigration, and the opportunity facing us to shape new immigration policies by looking at migration as a means to promote regional competitiveness.

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television broadcasting services. Also mentioned was the creation of a new autonomous agency, Instituto Federal de Telecomunicaciones (IFETEL).

ENERGY PANEL

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Steve Molina, Counsel at Dentons, with over 35 years of experience in the international petroleum and gas industry, talked about the ongoing discussions in Mexico concerning energy reform which would partially open the state-controlled industry to private investors. In his discussion, Molina drew parallels with what has transpired in Venezuela, developments he has been very familiar with.

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Infrastructure and Security panel. (From left to right) Assistant Commissioner David Murphy, from U.S. Customs and Border Protection; Ambassador Cris S. Arcos, Senior Advisor at the Center for Hemispheric Defense Studies and Alejandro Chacón, Head of Mexico’s Customs Administration.

twin goals of economic development and environmental protection.

strategies on border security for their respective countries.

Guillermo Zúñiga, Commissioner of the Energy Regulation Commission (Comisión Reguladora de EnergíaCRE) reported on the efforts being made to create a new structure of energy markets in Mexico which could facilitate achieving higher competitiveness and increasing existing infrastructure.

Dean Hull, Energy Specialist at the North American Development Bank closed the Energy panel, by providing an update on the projects funded by the NadBank in the area of clean energy production.

Ambassador Cris S. Arcos, Senior Advisor at the Center for Hemispheric Defense Studies, rounded out the discussion with some in-depth opinions and useful insight on infrastructure and security based on his extensive experience in this field.

INFRASTRUCTURE AND SECURITY

LUNCHEON KEYNOTE

Soll Sussman, Coordinator of the U.S.Mexico Border Energy Forum, presented an overview of the forum which celebrates its twentieth anniversary this year. It was created to foster the exchange of information and ideas on how to best produce and consume energy in the border region, with the

Conference attendees had the special opportunity of an open conversation with Assistant Commissioner David Murphy from U.S. Customs and Border Protection and Alejandro Chacón, head of Mexico’s Customs Administration both of whom defined the policies and collaboration

Ambassador Miriam E. Sapiro, Deputy U.S. Trade Representative, was the keynote speaker at the luncheon that concluded the Conference. Ambassador Sapiro shared her unique observations on “NAFTA at 20, NAFTA-EU, and the Trans-Pacific Partnership.”

Energy panel.(From left to right) Guillermo Zúñiga, Commissioner of the Energy Regulation Commission; Dean Hull, Energy Specialist at the North American Development Bank; Soll Sussman’s, Coordinator of the “U.S. – Mexico Border Energy Forum” and Steve Molina, Counsel at SNR Denton.

Keynote remarks by Ambassador Miriam E. Sapiro, Deputy U.S. Trade Representative

Hon. Albert C. Zapanta, President and CEO of the USMCOC, with Hon. Miguel Alemán Velasco, recipient of the “José Juan de Olloqui for Hemispheric Leadership Award 2013”, and Ambassador of Mexico to the U.S. Eduardo Medina Mora.

Ambassador of Mexico to the U.S. Eduardo Medina Mora, Juan Antonio González Moreno, Chairman of the Board of GRUMA, and recipient of the “Good Neighbor Award 2013”, with Hon. Albert C. Zapanta, President and CEO of the USMCOC.

GOOD NEIGHBOR AWARDS GALA The highlight of the two-day event was the Good Neighbor Awards Gala where the chamber bestows its annual awards recognizing those who have made exceptional contributions in binational relations and trade. Awards and the recipients were: ◦Juan José de Olloqui Award for Hemispheric Leadership was presented to Honorable Miguel Alemán Velasco, Former Ambassador at Large for NAFTA and former Governor of the State of Veracruz ◦Good Neighbor Awards were presented to: - Honorable Ken Salazar, former U.S. Secretary of the Interior - Dr. Luis Téllez Kuenzler, CEO of the Mexican Stock Exchange

Ambassador of Mexico to the U.S. Eduardo Medina Mora, Luis Téllez Kuenzler, CEO of the Mexican Stock Exchange, and recipient of the “Good Neighbor Award 2013”, with Hon. Albert C. Zapanta, President and CEO of the USMCOC.

- Juan Antonio González Moreno, Chairman and CEO of Gruma ◦Small Business Award ” was given to Luis Torres, Chairman of Grupo Caborca ◦Gerardo Funes, former Senior Vice President and Director of the USMCOC National Office, received special recognition for his 14 years of dedicated service and leadership, having started as an intern. With good wishes from the Chamber, he has now deservedly moved on to bigger challenges at the Inter-American Development Bank.

The leadership of the USMCOC, hereby, expresses its gratitude to the Members of the board, speakers, awardees, sponsors and conference attendees for being part of this extraordinary celebration.

UNITED STATES-MEXICO CHAMBER OF COMMERCE CÁMARA DE COMERCIO MÉXICO-ESTADOS UNIDOS

Hon. Ken Salazar, Former U.S. Secretary of the Interior, and recipient of the “Good Neighbor Award 2013”.

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Thanks its Sponsors for Supporting the: Binational Board of Directors Meeting and Good Neighbor Awards Gala 2013 “U.S. - Mexico 2013: The Chamber at 40, Nafta at 20”

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40 Forty Years

and Counting…

IN THE BEGINNING…

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.S. - Mexico Chamber of Commerce (USMCOC) was formed in 1973 by Mexico´s Ambassador to the United States, Dr. Jose Juan de Olloqui and a coalition of distinguished Mexican and U.S. businessmen who understood that the two countries needed a vehicle to improve communications and promote trade, investment and joint ventures on both sides of the border. Formed as a 501(c)(6) nonprofit business association and chartered in Washington D.C., USMCOC celebrates its 40th anniversary as “…the leading binational business organization working to build mutually-beneficial trade and investment relationships in North America.”

Ambassador de Olloqui coordinated a group of prominent business leaders and organizations in Mexico to represent the private sector. That group included Concamin, Canacintra, Canaco, Concanaco, Anierm, Asociacion de Banqueros, Cemai and Coparmex. He simultaneously approached several major U.S. companies with interests in Mexico to participate in this newly-formed binational organization. The U.S companies that were involved during the formation of the USMCOC included Sears Roebuck, the Hoover Company, Goodyear Tire, IBM, Bank of America, Union Pacific, and Southern Pacific Transportation Company.

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The vision for the Chamber was to "promote trade and investment between the countries." However, the underlying reason was for the Mexican side to establish an advocacy effort/educational vehicle to advance Mexico’s interests, i.e. exports, investment, and immigration issues with the U.S. legislative and executive branches of government. The U.S. members’ collective interest was in opening up the Mexican economy for their products/services, at the same time eliminating restrictions on foreign investment and trade in Mexico. In the 1970s and 1980s, the state controlled or participated in most industries, railroads, banks, airlines, steel and movies, to mention a few.

It was also his vision that the two ambassadors from Mexico and the U.S. would serve as honorary presidents, thus endorsing the Chamber’s binational status and structure and that two binational offices would be set up—one in Washington, D.C. and the other in Mexico City. The USMCOC binational office located in Mexico City serves as the counterpart of the U.S. Washington, D.C. office. These offices serve as the “hubs” for Chamber communications efforts between their respective governments. Likewise, each of these offices is responsible for coordinating/assisting chapter activities in its country.

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The Chamber began to put its vision into action beginning in 1975 by naming Jim Kuhn, former director of Singer Sewing Inc., as its first Executive Vice-President. He was followed two years later by Jay Van Heuven, Governmental Affairs Manager of Caterpillar. Van Heuven kept that position until 1991.

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In 1993, Al Zapanta, who was the Government Affairs Director for ARCO, succeeded Jay Van Heuven as Executive Vice President and today serves as the president and CEO of the USMCOC. In the twenty years since taking the helm, Zapanta has continued to grow the organization. His educational background, including a degree from the Harvard Graduate School of Business, and a Ph.D. in International Political Economics

from the University of Southern California, combined with business experience working with binational companies and governmental agencies (as a senior executive at ARCO, he negotiated contracts with Petroleos Mexicanos, PEMEX, and was their representative to local, state and federal governments on oil and gas issues) makes him perfectly suited to direct the organization. He has also served in the public sector and held numerous presidential appointments, including a White House fellow in 1973-74, and as Senate-confirmed Assistant Secretary of the Interior for Management and Administration from 1976-77. Most notably to prepare for his role with USMCOC, was his tenure with the U.S. State Department Advisory Committee on International Trade Technology and Development from 1981-1987, and as a delegate to the U.S.-Mexico Partnership for Prosperity from 2001-present, and served as Chairman of the Reserve Forces Policy Board (RFPB) from 20022004. He also holds the rank of Major General in the U.S. Army (Ret).

SIGNATURE EVENTS AND PROGRAMS Binational meeting and gala The Chamber hosts its signature event each year in the U.S. in the Spring and in Mexico City in the Fall. The Annual Binational Meeting features keynote addresses and panel discussions by prominent leaders in business and government from both countries.

For example, on the agenda for the U.S. meeting held this past May, there were a White House briefing on President Barack Obama’s visit to Mexico, delivered by Dr. Ricardo Zuniga, from the National Security Council; a keynote by Honorary Presidents of the USMCOC, Eduardo Medina Mora, Ambassador of Mexico to the U.S. and Anthony Wayne, U.S. Ambassador to Mexico; and Ambassador Miriam E. Sapiro, Deputy U.S. Trade Representative, informed luncheon attendees on the topics of NAFTA at 20, US-EU Trans-Atlantic Trade and Investment Partnership, and the TransPacific Partnership.

The annual meeting concludes with the Good Neighbor Awards Gala dinner

Transporte Internacional In order to address problems and opportunities in the transportation systems and review obstacles to a safe, fluid transportation and trade system, USMCOC took on the challenge to organize an initiative to identify and rectify both current and future issues. As a result, “Transporte Internacional” was formed in December 2000. The effort is binational with a focus on the region from Canada to Panama and includes land, air and sea transportation. Through its organizational structure of regional offices and the caliber of members, the Chamber can facilitate communication among all parties.

The Transporte Internacional Conference brings together business and key binational government leaders to dialog and explore a broad range of ways to further integrate North American economies through trade. The conference is a public-private enterprise that promotes transportation, energy and trade capacity building, security and sector development, both of which are consistent with NAFTA, the Security and Prosperity Partnership (SPP), and Mexico’s National Infrastructure Program 2013-2018 soon to be released

by President Enrique Peña Nieto.

Border Energy Forum The Border Energy Forum is a collaborative effort among the Texas General Land Office, the North American Development Bank, The Energy Council, the USCMOC, and the 10 Border States along the U.S. - Mexico border that brings together representatives from the federal governments of both countries, as well as state and local officials, university professors, researches and members of environmental groups, who meet once a year to exchange information about the best ways to produce and consume energy, forge new partnerships and help each other work together on achieving twin goals of economic development and environmental protection of the border region.

(Source: Border Energy Forum, www.glo.texas.gov/ border-energy-forum)

International Trade Development and Assistance Center In 2008, the USMCOC partnered with the Greater Irving-Las Colinas Chamber of Commerce in Irving, Texas, to create the International Trade Development and Assistance Center to “facilitate implementation of business information and assistance between companies in North Texas and the international community.”

The Center’s International Trade Program for North Texas conducts trade missions from Irving as well as reverse trade missions; targets specific sectors

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held at the beautiful and graceful headquarters of the OAS (Organization of American States) during which individuals are recognized for their exceptional contributions to binational trade and cooperation.

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or markets to facilitate matchmaking activities; and conducts information and training seminars on “How to Do Business” in foreign markets.

(Source: Greater Irving-Las Colinas Chamber of Commerce, www.IrvingChamber.com)

USMCEF To further its mission, the USMCOC founded U.S.-Mexico Cultural and Educational Foundation (USMCEF), a 501(c)(3) nonprofit organization, in 1996. USMCEF develops and provides grants for programs in keeping with its mission to “…promote an enhanced knowledge and understanding of the educational and cultural differences between the two countries in order to establish closer and stronger ties.” It is headquartered in Irving, Texas.

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Two notable examples of the Foundation’s activities are the Cultural Effectiveness Center (CEC) and Future Leaders of Irving.

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Only recently have companies recognized the fundamental role that cultural systems play in business performance. With this in mind, the USMCEF applied anthropological and management principles of cultural system evaluation and measurement to establish the Cultural Effectiveness Center.

The center provides certification in Cultural Effectiveness and Transparency Certification (CET), a key tool for optimizing organizational performance, international joint ventures, managing workplace diversity, and ensuring successful management and administration.

In yet another partnership with several local nonprofit and public entities, USMCEF developed Future Leaders of Irving (FLI), a sevenmonth per year program for high school seniors designed to introduce them to city government, nonprofit agencies, and local businesses. The

demographics of the students reflect that of the school districts which are primarily Hispanic. FLI focuses on developing leadership skills and on character development, and helps participants prepare for college and career after graduation.

The USMCEF has requested a multiyear grant to establish the Center for North American Sustainable Economic Development at the University of Oklahoma in Norman, Oklahoma, in response to NAFTA’s side agreement on labor, the environment and Border XXI. The Center will address the needs of the communities along the Southwest Border of the U.S. and Mexico and the Northern Border with Canada.

LOOKING FORWARD Now beginning its fifth decade of operation, the Chamber has grown into a unique non-profit corporation operating through eight regional offices in Mexico and eight in the United States. It is recognized in both countries as a primary conduit in the promotion of business relationships and partnerships across the border.

One only has to look at the photographs scattered throughout these pages to see the thousands of individuals who have benefited from their participation in the Chamber.

In looking forward, Zapanta says of the future of USMCOC, “We were here before NAFTA, we’ve been here during NAFTA, and we will continue to be here long after NAFTA’s 20th anniversary.”

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Mid-America Chapter.

Chicago, IL ILLINOIS GOVERNOR PAT QUINN’S BUSINESS MISSION TO MEXICO CITY, APRIL 3-6

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Illinois Governor Pat Quinn visited Mexico from April 3-6 with a delegation of businesspeople, state representatives and chamber members. His delegation included companies interested in developing and/or expanding business ties with Mexico in the following industries: food, environment, water treatment, financial services, construction, advertising,

Affairs, and touring the Ingredion plant in Mexico and the Virgin’s Basilica.

The message of Governor Quinn was a friendly one: Illinois is a state that likes Mexico and its people. He also avidly promoted investment opportunities in Illinois and expansion of businesses both ways.

education, entertainment and restaurant industries. The U.S. Mexico Chamber was part of the mission.

The group had a busy agenda, meeting with, among other individuals and institutions, Promexico, The COMCE, Chicago Tourism Board, Mexico City Mayor Miguel Angel Mancera, and representatives of the Ministry of Foreign

Governor Pat Quinn and Representative Lisa Hernández in Mexico City’s Lincoln Monument.

DETROIT: QUARTERLY MEXICO SPRING UPDATE

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he chapter renewed its presence in the Detroit-Great Lakes area with its Third Mexico Update this year.

The update was hosted in Southfield, Michigan at the offices of chapter member Plante & Moran, PLLC., accountants and consultants.

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Mexico is going through a profound transformation in its manufacturing capacity, technology level, economic and social development and is rapidly becoming a key player North American manufacturing and competitiveness. The Mexico Update seminars are designed to keeping our members informed and up-to-date on issues of interest in both the U.S. and Mexico. The chapter hosts one of these events quarter touching on topics such as fiscal reform, labor reform, security, and a general review on economic, legal and political issues.

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Our first panel moderator was Marie Alsace Galindo, legal counsel for Techba in Michigan who presided over a panel that discussed the legal reforms Mexico is undergoing.

Panelists were: Manuel Chavez, Associate Professor, College of Communication Arts and Sciences, Michigan State University; Rodrigo Rojas, attorney and partner, González Calvillo, S.C.; Oscar de la Vega, Office Manager Shareholder, Littler Mendelson P.C. The second panel moderated by Scott Sneckenberger, partner at Plante Moran and chamber board member, featured: Alejandro Rodriguez, Country Manager Mexico, Plante Moran; Richard Roche, CEO Roche Industries; and Mark Zmyslowski, Radar Industries.

U.S. MEXICO TRADE: TRENDS AND CHALLENGES

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pportunity is the watchword for doing business in Mexico, members of the Traffic Club and the U.S. Mexico Chamber of Commerce were told during an April 25 seminar as they listened to experts on doing business between the U.S. and Mexico.

It started with David Hale and an economic overview suggesting that Mexico is the new China.

Peter Moirano from CitiBank, moderated

a panel on trade. Panelists were Kevin Clark, Banamex; Oscar de la Vega, Littler Mendelson P.C.; Edgar Lopezlena, RSM McGladrey; Miguel Noyola, Baker & McKenzie LLP; and Garrick Taylor, director of Public Policy at the Border Trade Alliance.

Each panelist spoke about changes taking place in Mexico—changes affecting Mexico’s new administration, trade policy issues, labor reform, the legal framework for doing business in Mexico, finance and cross border issues. All

pointed to the development of a growing regional manufacturing base and thus an increase in transportation, logistics and supply chain opportunities to and from Mexico.

James Cooke, editor of Supply Chain Quarterly, a publication of the Council of Supply Chain Management Professionals, moderated the panel on manufacturing and logistics. James Commiskey, Vice President of Business DevelopmentAutomotive, Pacer International, Inc.; John Marchese, Senior Director of

Business Development at DHL Express; and Miguel Perez, Director International Customer Logistics at Ryder Supply Chain Solutions talked about logistics and supply chain opportunities from the prospective of the provider. All agreed that logistics and transportation are the key to integrating successful manufacturing operations and

Mexico Update, Harper College Auditorium.

connecting them to the U. S. and Mexico marketplace.

Haydn Powell, Global Supply Chain Manager at Caterpillar and Justin Norman Senior Director Business Development at J.D. Norman Industries spoke to the value of setting up manufacturing operations in Mexico.

Panel 1, “The climate for U.S.-Mexico Trade” Oscar de la Vega, Garrick Taylor, Edgar Lopezlena, Miguel Noyola, Kevin Clark.

The closing speaker was Jose Zozaya, president of the Kansas City Southern de Mexico. He talked about going “Beyond the Border” and how manufacturers in all of the North American markets need the values that international transportation supplies both for manufacturing locations and for destination and consumption markets.

Panel 2, “Manufacturing and Logistics, Opportunities and Challenges.” Miguel Pérez, Hayden Powell, Justin Norman, Jim Commiskey, John Marchese.

SALOMON CHERTORIVSKI VISIT TO CHICAGO he Chicago Council on Global Affairs hosted Salomón Chertorivski Woldenberg, Secretary of Economic Development for Mexico City and the 2013 Gus Hart Visiting Fellow at the 12th Annual Gus Hart Lecture, “Mexico Rising?,” on May 16.

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Miguel Ángel Mancera, appointed Salomón Chertorivski to lead economic development efforts for Mexico City. He is responsible for increasing foreign direct investment, creating a healthier and more equal society, and better connecting Mexico to the world physically and digitally.

In December 2012, the newly elected mayor of Mexico City,

The Chapter was a partner in promoting the events for this week.

THE EVOLVING MEXICAN MARKET: BUSINESS OPPORTUNITIES IN MEXICO Panelists were: Sergio Luna, PhD., Director of Economic Research, Banamex; William Stanton, Managing Director, Citi Commercial Bank U.S.; Cesar Gonzalez, Director of Commercialization, Banamex, Citi Commercial Bank Mexico; and Ricardo Aizenman, Director International Banking Mexico and Latin America, Citi Commercial Bank U.S.

CHAMBER HOSTS SHANNON O’NEIL, AUTHOR OF IMPORTANT NEW BOOK ON U.S.-MEXICO RELATIONS

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wo Nations Indivisible: Mexico, the United States, and the Road Ahead, a recently released book by Shannon K. O’Neil, Senior Fellow for Latin America Studies, Council on Foreign Relations, tells the story of the making of modern Mexico, and what it means for the United States. The author was the chamber’s guest at a breakfast on June 11.

Overlooked in today’s bloody headlines is Mexico’s fundamental transformation.

In over three short decades, the country has gone from a poor to a middle class nation, a closed to an open economy, an authoritarian to a vibrant (if at times messy) democracy, and a local to an increasingly binational society.

But while things are much better than portrayed, Mexico does face a true

security challenge. For the good of both countries, O’Neil argues against walling off the U.S. from its neighbor and, instead, she argues for finally investing in a true partnership.

Perhaps no other nation is as inextricably intertwined with the U.S. economy, society, and daily lives as Mexico. What happens in Mexico will affect the United States for decades to come.

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n May 2, Citibank, Banamex and the Mid-America Chapter chamber members an opportunity to learn about the cross border possibilities for businesses operating in the U.S. and Mexico. Banamex, the largest bank in Mexico and part of the Citi group, offers U.S. companies many resources and opportunities to securely operate their financial transactions including financing.

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Southwest Chapter Dallas, TX

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n recognition of Older Americans Month, the Southwest Chapter of USMCOC co-sponsored MayFair 2013, a festival and expo for the seniors in the Dallas, TX Metroplex, on May 24 at the Omni Hotel.

The event was created by the City of Dallas Senior Affairs Commission several years ago. In keeping with the theme, “Live, Love and Laugh!,” attendees are treated to entertainment, educational exhibits, music and

dancing. Performances by Folklorico, Dallas Tap Dazzlers, Dancing Divas and Dudes and Lillie Madison, Ms. Texas Senior America.

Monica Alonzo, Dallas City councilwoman, was appointed by Dallas mayor Mike Rawlins as liaison to the festival. Josie Orosco, city councilwoman and executive director of the Southwest Chapter, selected chair and Mistress of Ceremonies.

Although the event was inaugurated several years ago, it had been on hiatus for over five years so gearing up for this year’s required planning and execution were a challenge.

All the organization for Mayfair 2013 paid off because was a huge success— approximately 500 attended. It could not have been as successful without sponsors like the Omni Hotel; DART (Dallas Area Rapid Transit); Doctors Hospital at White Rock Lake; Texas Institute for Surgery; Gonzalez Funeral Home; Home Helpers of Dallas; Methodist Health System, Dallas; The Legacy at Home; and last but not least, Friends of Senior Affairs.

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Group picture of the renowed Red Hats, they were taken away by all the entertainment and gifts that were donated by sponsors of the event.

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Presentation of Colors by the Dallas Police Department and the National Anthem sang by Lillie Madison, Mrs. Texas Senior America 2012 along with the Pledge of Allegiance that was presented by Air Force Colonel, Hal Bird.

The Crowd Picture.

Mayfair Festival Awards, given by Josie Orosco, Monica Alonzo and Trine Garza, to the Community Service Award Winner Blanca Lara.

We wish to recognize the City of Dallas Senior Affairs Commissioners who work endlessly to assist our senior communities: Chair Gustavo Gonzales: Trini Garza, Mayfair Committee; Lydia Simpson, Mayfair Gift Chair; Josie Orosco, Chair of Mayfair; Dorothy Willis; John Johnson; Felix Lozada, Mayfair Committee; Betty Hooey; John Roberts; Vickie Barcomb; Eleanor Trachtenberg; and Mayfair Awards Chair.

We also thank Dwayne Carraway for his strong support and Karen Razor’s staff: Constance Smith, Vicki Smith and Lilia Gonzalez.

The Dancing Divas performing to a happy and excited audience.

Inter-American Chapter Miami, FL SEMINAR, ”PRESIDENT OBAMA’S MEETINGS IN LATIN AMERICA: IMPLICATIONS FOR BUSINESS, TRADE & INVESTMENT” The Inter-American Chapter emerged from its reorganization that began in January 2013 by planning and presenting the seminar, “President Obama’s Meetings in Latin America: Implications for Business, Trade & Investment” on May 21 during the 34th Hemispheric Congress of Latin Chambers of Commerce and Industry held May 20-23 at the Biltmore Hotel’s Conference Center of the Americas in Coral Gables, Florida.

U.S.-MEXICO HIGH LEVEL ECONOMIC DIALOGUE Much of the seminar’s discussion focused on the U.S.-Mexico High Level Economic Dialogue (HLED) that President Obama and President Enrique Peña Nieto agreed to establish to further elevate and strengthen the dynamic bilateral commercial and economic relationship that generates more than $500 billion per year in twoway trade and supports millions of jobs in both countries.

The HLED is envisioned as a flexible platform intended to advance strategic economic and commercial priorities central to promoting mutual economic growth, job creation and global competitiveness. It will be led at the cabinet level and will seek to engage and solicit input from the private sector and civil society.

Seminar participants offered five recommendations for the HLED during the interactive session:

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he seminar was a follow-up to President Barack Obama’s and Vice President Joseph Biden’s meeting with Latino leaders including Albert Zapanta, Chamber President & CEO, at the White House on April 29 in preparation for the May 2-4 meetings in Mexico and Costa Rica.

Due to the generous support of Chamber members and seminar sponsors Interjet, Ryder, Royal Caribbean Cruises Ltd. and ProMéxico, registration was complimentary for members to thank them for their patience and understanding during the chapter’s reorganization and to demonstrate the quality of the programs and events that will be offered as the chapter moves forward promoting and facilitating United States-Mexico business, trade and investment and providing value to members.

Our thanks to the individuals and organizations that brought their expertise to this seminar:

◦Michael Ronan, Vice President, Government Relations, Caribbean, Latin America & Asia, Royal Caribbean Cruises Ltd. and President, InterAmerican Chapter, welcomed seminar participants. ◦Luis Murguia, Director of Operations, Ryder Supply Chain Solutions; Moisés Peraza Zaragoza, Trade and Investment Commissioner, ProMéxico Southeast USA and Caribbean; and Eduardo Torres, Director, South Florida U.S. Export Assistance Center, U.S. Department of Commerce, were the panelists. ◦Pablo Sánchez, Sales Manager, Interjet, was the facilitator and reporter. ◦Susanna Werner, Interim Executive Director, Inter-American Chapter and Advisor to the Organizing Committee, United States-Mexico Border Energy Forum, was the moderator.

The Inter-American Chapter’s delegation to the Chamber’s Binational events held May 22-23 in Washington, D.C. presented the recommendations to Dr. Ricardo Zuniga, Special Assistant to the President and Senior Director for Western Hemisphere Affairs, National Security Council, The White House and Gregory K. Schiffer, Director for North America, Western Hemisphere Affairs, The White House, who responded with appreciation.

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Moisés Peraza Zaragoza, Trade and Investment Commissioner, ProMéxico Southeast USA and Caribbean; Eduardo Torres, Director, South Florida U.S. Export Assistance Center, U.S. Department of Commerce; and Luis Murguia, Director of Operations, Ryder Supply Chain Solutions.

1. Harmonize technical standards and public health and safety certifications, 2. Standardize border security programs such as the CustomsTrade Partnership Against Terrorism (C-TPAT) and the Nuevo Esquema de Empresas Certificadas (NEEC), 3. Initiate visa reciprocity with Mexico allowing work/investor visas for Americans for more than one year, 4. Implement environmental regulations without negatively impacting commerce (fuel, etc.); and 5. Resolve general security concerns for employees and other stakeholders.

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Pacific Northwest Chapter. Seattle, WA FAREWELL BREAKFAST HONORING AMBASSADOR GARCIA MORENO

Chapter President Jorge Madrazo recognized the ambassador for his outstanding service and invaluable contribution to the Mexican community in the state of Washington, and his support to the chamber for the last three years.

The ambassador also received recognition from TechBA Seattle for his efforts, commitment, and collaboration in promoting economic development between Mexico and the state and for supporting small- and medium-sized technology-based companies.

Mike Peters, Director of International Programs for the City of Seattle, representing Seattle Mayor Mike McGinn, offered thanks in appreciation of Garcia Moreno’s contributions and Hon. Phyllis Gutiérrez, former state representative, was also in attendance to offer well wishes for the future.

Ambassador Alejandro García Moreno Elizondo, Consul of Mexico in Seattle; Gabriela Michán, US-Mexico Chamber of Commerce NW Chapter; Alejandra Fernández, Consulate fo Mexico; Phyllis Gutiérrez, Former Representative (WA); Itzam De Gortari, CEO of TechBA Seattle; and Jorge Madrazo, President of the Northwest Chapter of the USMCOC.

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he U.S.-Mexico Chamber of Commerce Pacific Northwest Chapter hosted a farewell breakfast to honor Ambassador Alejandro García Moreno

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Elizondo, Consul of Mexico on May 30, 2013 in Seattle, Washington. The breakfast will be held on Thursday May 30 at 8:00 am at the Columbia Tower Club in Seattle (Floor 75).

The farewell breakfast was attended by chapter past presidents Susana González-Murillo and Luis Navarro, Port of Seattle Commissioner John Creighton, business leaders and members of the Latino Community who represented government, financial, educational and non-profit sectors of the Pacific Northwest region.

Mike Peters, International Programs Director for the City of Seattle (podium), and Jorge Madrazo.

Itzam De Gortari, Gabriela Michan, Alejandro García Moreno Elizondo, Jorge Madrazo, and Luis Morris, Treasurer of the US-Mexico Chamber of Commerce NW Chapter.

Victor Matheu, from “The Pacific Institute” and Luis Morris.

Farewell Breakfast Honoring Ambassador Alejandro García Moreno Elizondo, Consul of Mexico in Seattle by the USMCOC.

NEW MEMBERS

The Woodlands Gulf Coast Chapter. The Woodlands, TX

T

he chapter hosted a breakfast for 180 attendees during the week of Houston’s Offshore Technology Conference.

The keynote speaker was Dr. Jesus Reyes Heroles, former CEO for PEMEX, former Secretary of Energy and former Mexico Ambassador to the U.S.—and, a longtime friend of the USMCOC. The event, held May 8 at the Westin Oaks Hotel in Houston, was sponsored by AeroMexico, Grupo Vitesse and Pete Garcia International and it was cohosted

by AEM (Associacion de Empresarios Mexicanos) of the Woodlands.

Reyes Heroles spoke on the future of Mexico’s energy, an important topic discussions between President Enrique Peña Nieto and Congress on the Energy Reforms of Mexico are ongoing. The event was covered by national and local TV stations KTRK-ABC, Univision and MundoFox and local Hispanic newspapers.

BOOK SIGNING WITH DR. SHANNON O’NEIL Dr. Shannon O’Neil, author of Two Nations Indivisible: Mexico, the United States and the Road Ahead met with USMCOC members and guests for a book signing and open discussion on May 15.

O’Neil, whose book was released the previous month, is a senior fellow of the Council on Foreign Relations (CFR), a non-partisan think tank that focuses on

Julie Charros-Betancor, Vice President of the USMCOC The Woodlands-Gulf Coast Chapter; Shannon O’Neil author of the book ”Two Nations Indivisible-Mexico and The United States”; and Pete Garcia, Executive Director USMCOC The WoodlandsGulf Coast Chapter.

U.S. foreign policy and international affairs. She was in Houston addressing the World Affairs Council. (Reference to this book also in Northeast Chapter) NETWORKING MIXERS The chapter hosted networking mixers at Crush Wine Lounge in The Woodlands, at BlackFinn Cafe in Houston, and La Casa del Caballo Steakhouse in Houston. The mixers are intended to create networking opportunities among members and potential members. The chapter is on schedule to host one networking mixer in the Gulf Coast every month for the remainder of the year.

Jesus Reyes Heroles, former CEO of PEMEX.

ADVISORY COUNCIL BOARD The chapter also hosted the Advisory Council Board members at The Woodlands resort on May 27 the for its first annual strategy retreat with the purpose of discussing the successes and challenges of its first 18 months in operation. Many new and creative ideas were discussed and are being implemented including the redesign of the local the chapter’s Web site, due to debut in the month of June.

Ben Hall, Jesús Reyes Heroles, Francisco Azcarate and David Matos.

ETC… The Woodland Gulf Coast Chapter supported the launch of the event: Amigas de The Woodlands, the keynote speaker was Margarita Zavala, exFirst Lady of Mexico who talked about Challenges on Migration.

Ronda Harkey Butler, President of the USMCOC The WoodlandsGulf Coast Chapter.

Jorge Concepción, Member AEM; Luis Malpica y de La Madrid, Consul General of Houston; and Francisco Azcarate, Member AEM

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

BREAKFAST SEMINAR

The chapter also welcomed new members, The Methodist Hospital System, a major globally recognized medical service and research institution and Karins CPA group, WG Consulting, and St. Thomas University.

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Valle de México Chapter.

México City PROGRAMA NACIONAL DE CAPACITACIÓN EN NEGOCIOS INTERNACIONALES

E

l pasado miércoles 20 de marzo el Presidente de la Cámara de Comercio México-Estados Unidos Valle de México Chapter, José García Torres inauguró el Programa Nacional de Capacitación en Negocios Internacionales 2013, resultado del esfuerzo conjunto que realizan la Secretaría de Economía, PROMEXICO, Integra, S.C. y la Cámara de Comercio México-Estados Unidos, a celebrarse de marzo a agosto, en diez ciudades del país con temas de interés para aquellos empresarios que deseen

extender su negocio más allá de las fronteras.

Durante la primera sesión, que tuvo lugar en la Ciudad de México, se abordó el tema de Trámites de Comercio Exterior ante la Aduana, y fue impartido por José Ángel Blanco Maldonado, socio del miembro del Capítulo Moore Stephens Orozco Medina, S.C., empresa de contadores públicos y asesores de negocios especializados en comercio exterior.

REUNIÓN DE LA CONAGO CON LOS PRESIDENTES DE LOS ORGANISMOS Y CÁMARAS EMPRESARIALES

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

E

34

l pasado 10 de abril los miembros de la Conferencia Nacional de Gobernadores (CONAGO) presididos en esta XLV Reunión Ordinaria por Mario López Valdez, Gobernador Constitucional del estado de Sinaloa y los presidentes de 29 organismos y cámaras empresariales líderes del sector privado, entre ellas, la Cámara de Comercio México-Estados Unidos, se reunieron en Huixquilucan Estado de México con el objetivo de establecer

una agenda común entre gobiernos estatales y empresarios, que permita dar respuesta a las demandas del sector en beneficio de la población del país.

Dentro de los acuerdos alcanzados en dicha reunión, destaca que la CONAGO y los organismos y cámaras empresariales del país, trabajarán de manera conjunta en la integración de las propuestas coincidentes de sus agendas; para tal efecto, suscribirán un convenio que definirá las estrategias

Gerardo Gutiérrez Candiani, Presidente del Consejo Coordinador Empresarial (CCE); Eruviel Ávila Villegas, Gobernador del Estado de México; y Mario López Valdez, Gobernador del estado de Sinaloa, al cierre de la reunión.

José García Torres, al inaugurar el Programa Nacional de Capacitación en Negocios Internacionales 2013.

José Ángel Blanco Maldonado y Eduardo Pérez, socios de Moore Stephens Orozco Medina, S.C. inician la sesión.

y mecanismos permanentes coordinación y cooperación.

de

Con la finalidad de dar inicio a estos compromisos, la presidencia de la Conferencia Nacional de Gobernadores recibirá el documento realizado por el Consejo Coordinador Empresarial (CCE9, y lo turnará a las Comisiones de la CONAGO, para que estas analicen y estudien aquellas propuestas que puedan ser incorporadas a sus respectivas agendas temáticas.

Efectuando reuniones semestralmente los participantes esperan realizar acciones conjugadas que ayuden a impulsar el desarrollo de nuestro país.

En Huixquilican Estado de Méxco, representantes de la CONAGO y dirigentes empresariales acordaron trabajar unidos para que México logre un desarrollo económico sostenido.

COLABORANDO PARA UN MÉXICO MEJOR

Al evento asistió el Cónsul Honorario de España, Manuel Caramés Cota; de Francia, Lygie De Schuyter; y de Alemania, Erika Rempening. Por parte de la CCMEU, Andrés Quiala; el Cónsul de Bélgica, José Manuel Urreta; el Delegado de Secretaria de Relaciones Exteriores, Anselmo Zannata; el Subsecretario de Desarrollo Económico del Estado de Veracruz, Baruch Barrera; y la Cónsul Honoraria de Belice, Sandra Vázquez, entre otras distinguidas personalidades del ámbito académico.

E

l Capítulo del Golfo fue invitado por la Secretaría de Relaciones Exteriores a exponer propuestas del

Plan Nacional de Desarrollo del cual el presidente Enrique Peña Nieto convocó a la sociedad. Esto se llevó a cabo el día 14 de abril del presente año

El Capítulo del Golfo participó a través de su presidente, Andrés Quiala, en la mesa de trabajo, “México, actor con responsibiliad global” con el tema Oportunidades Comerciales y Visión Binacional México-Estados Unidos 2013.

En el evento se dieron a la cita el Subsecretario de Economía del estado de Veracruz, Baruch Barrera; el Delegado Estatal de la Secretaria de Relaciones Exteriores, Anselmo Zannata; así como el cónsul de Bélgica, José Manuel Urreta; de Alemania, Erika S. Rempening; de Francia, Lygie de Shuyter Fouste; y de Belice, Sandra Isabel Vázquez, entre otras distinguidas autoridades de la Universidad Veracruzana, y empresarios.

Con ello, CCMEU reitera su misión con el gobierno federal y estatal para promover la inversión, el comercio y la cultura entre México y Estados Unidos.

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

Golfo Chapter.

Veracruz, Ver.

en el World Trade Center–Boca del Rio, donde personalidades como el Secretario de Educación, Emilio Chauffet, y el Gobernador de Veracruz, Javier Duarte, dieron el banderazo para las mesas de trabajo.

35

Re-Emergence of the Mexican Stock Exchange as a Financing Alternative in Mexico

By Luis Téllez / Chairman of the Board and Chief Executive Officer of Bolsa Mexicana de Valores SAB de CV

T OPINION ECONOMY / OPINIÓN ECONOMÍA

here are important indicators that show the positive economic performance in Mexico, one of these it is the number of Public Offerings that have been placed in both the Capital and Short and Long Term Debt Market.

36

Mexican entrepreneurs are finding a significant demand for securities by domestic and international institutional investors. This amount of liquidity, along with its own market demand and a rigorous study of the financing needs required to meet the National Development Plan, have allowed the creation of new financial instruments such as CKD’es that channel resources to projects under incubation stage, or FIBRAS (REITS), which are focused on mature projects from different economic sectors such as industrial, tourism and shopping centers.

Companies that decided to obtain financing in the Stock Market, may also issue debt through short or long term Certificates as this instrument fits perfectly the needs for each institution, thanks to its flexibility into name, periods, guarantees and yields. The incursion of companies in the debt market is a natural path to reach progressively the Capital Market, where they find greater financial resources through the issue of shares.

Therefore Debt Certificates as well as Shares,

FIBRAS (REITS) and CKD’es, complete a virtuous circle in which the Mexican Stock Exchange covers financial needs for every company with different periods of growth and consolidation.

IPOS EVOLUTION IN RECENT YEARS AND EXPECTATIONS FOR THE NEXT YEARS The first quarter of 2013, has been the most dynamic within the last ten years in terms of Public Offerings, posting a record of resources with three new issuers that obtained 23 thousand million pesos, trend followed by a 2012 that closed the year with seven companies placing record amounts for more than 90 thousand million pesos.

In the last five years, twenty-two companies have decided to make available its capital to public investors through the issue of shares. Looking back over these deals, we see that in 2009 two companies obtained resources for over 25 thousand million pesos, in 2010 six companies raised a total of nearly 20 thousand million pesos , and in 2011, despite being a year in which economic uncertainty was still present in different countries, four Mexican companies had IPOs for 15 thousand million pesos.

The applications for listing that are still in confidentiality period, show that the interest for making equity deals have been increasing compared

NEW INSTRUMENTS LISTED IN BOLSA: CKDS, FIBRAS (REITS) The Mexican Securities Market new instruments known as CKD’es and FIBRAS have raised resources for more than 125 thousand million pesos, allowing new participants to be part of the Mexican Stock Exchange.

The CKD’es securities or trust securities are intended to finance one or more projects, through the acquisition of one or more promoted companies, especially in sectors like Infrastructure, Real Estate, Mining, Business in general and Technology Development. The yields are variable

and depend on the usufruct and benefit of each project with a certain maturity period. With these characteristics 23 CKD’es issuers have been financed by 59 thousand million pesos, of which, 34 thousand million pesos have been invested in different sectors such as Real Estate, Infrastructure, Private Equity and Energy.

On the other side, FIBRAS are trusts dedicated to the acquisition or construction of real estate, intended to leasing, that offer to their holders periodic payments and also the possibility of obtaining capital gains. Since its launch in 2011, five companies have been listed for a total of 67 thousand million pesos.

These companies are involved in the development of shopping centers, hotels, industrial plants, among others.

Luis Téllez, Chairman and Chief Executive Officer of BMV.

ANALYSIS OF FOREIGN INVESTMENT IN THE MEXICAN CAPITAL MARKET

Units

2006

2007

2008

2009

2010

2011

2012

Market Capitalization BMV

USD millions

346,631

399,485

237,910

351,957

453,496

407,667

524,084

Foreign Investment in BMW

%

44

39

-

38

36

32

32

OPINION ECONOMY / OPINIÓN ECONOMÍA

to previous years, so we are certain that we will be seeing more companies becoming Capital Market Issuers.

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DISCUSSION OF DIFFERENT TECHNOLOGY PLATFORMS AND AVAILABLE VEHICLES TO FOREIGN INVESTORS INTERESTED IN PRODUCTS LISTED ON THE BMV In order to supply new investors who demand the Securities Market instruments, the Mexican Stock Exchange has developed an integrated strategy focused on increasing access options to our trading system. The strategy focuses on institutional and foreign investors by giving them more operation options, which results into a significant increase in liquidity in the capital market.

Technological changes have been accompanied by regulatory updates, allowing a greater number of transactions with different characteristics each, such characteristics are very similar to those used in developed countries like the United States, which has improved access to foreign investors.

OPINION ECONOMY / OPINIÓN ECONOMÍA

This evolution in the Capital Market, was materialized in our new trading engine, called MONET, which has become one of the five faster platforms at a global level, allowing the exchange of securities through the following vehicles:

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FIX Protocol Since September 2011, FIX 4.4 is the only transmission protocol used to route orders to the cash market of Mexican Exchange.

DMA Buy Side/Sell Side participants can now send, cancel or modify their DMA instructions through the Mexican Exchange’s member authorized lowtouch risk managed access to the order book. BMV members are responsible for settling DMA orders.

Co-Location Mexican Exchange and MexDer members, as well as vendors in CoLocation, can place their servers next to BMV Group’s matching engine to achieve latencies below 1 millisecond from cage to cage.

SFTI network NYSET offers a complete solution for buy and sell side clients to enable the

international flow of liquidity. This solution includes a private network from USA to Mexico and a fully hosted and managed infrastructure that is interconnected to the Mexican Exchange´s members.

SIC market Investors can trade in the Mexican Stock Exchange international securities listed in The Global BMV Market under the International Quotation System (SIC) trading and regulatory scheme.

Listing securities in this portion of the market is only possible if they belong to recognized foreign markets or are listed by issuers recognized by the Mexican Securities and Exchange Commission (CNBV).

Mid-Mex Mid-Mex is a fully hidden order book that acts as a midpoint price taker of the Mexican Exchange´s visible book.

Ideal for institutional investors willing to trade large blocks anonymously minimizing transactional costs.

POSSIBLE ALLIANCES WITH OTHER MARKETS AND LISTING OF FOREIGN COMPANIES IN MEXICO On December 5, 2011 the Mexican Stock Exchange announced that as part of the Second Summit of the Pacific Alliance held in the city of Merida, Yucatan, an Agreement of Intent was signed with the stock exchanges of Colombia, Lima (Peru) and Santiago (Chile) that comprise the Latin American Integrated Market (MILA).

The Agreement was signed in the presence of heads of state of those countries, Mr. Felipe Calderon Hinojosa, President of Mexico; Mr. Juan Manuel Santos, President of Colombia; Mr. Ollanta Humala, President of Peru and Mr. Sebastián Piñera Echenique, President of Chile.

The previously mentioned Agreement is intended to search that the stock markets from these four countries, explore operational and technological market aspects needed to achieve a full connection of the Mexican Stock Exchange with the integrated Latin American Market, (MILA), while the appropriate consultations are held with the supervisory authorities, as well as the necessary approvals are

obtained or the adjustments are made to the regulatory frameworks that will enable the Stock Market integration.

Along to the efforts for the integration of Mexico to MILA the Mexican Stock Exchange through its subsidiary Grupo BMV Holdings, SA de CV, acquired through market operations the amount of 5.02 million shares of Series “A” Values from the Lima Stock Exchange (BVL), with an investment of about $ 20 million dollars, reaching 8.4% of the capital share of the BVL. Additionally, this investment is complemented with the signature of a strategic agreement between both Stock Exchanges which covers activities aimed at enhancing their partnership and the development of the securities markets in Peru and Mexico. These include equity and derivatives markets, communications infrastructure and custody, MILA development, price vendor and risk management services, mining sector development, among others.

Nowadays the Mexican Stock Exchange has major institutions and foreign companies trading both in the Capital Market and Debt Market. Domestic and foreign investors can invest in shares of: ◦Banco Bilbao Vizcaya Argentaria, ◦Citigroup, ◦Fresnillo, ◦Banco Santander, ◦Tenaris.

Individuals and institutions interested in agency bonds and foreign companies can acquire the titles of: ◦Corporación Interamericana de Inversiones, ◦Banco Interamericano de Desarrollo, ◦Molibdenos y Metales, ◦Banco de Chile, ◦Banco de Crédito e Inversiones, ◦Banco Latinoamericano de Comercio Exterior, ◦Export Development Canada.

These companies are a clear proof that the Mexican Stock Exchange has become a viable option for international companies looking to diversify their funding sources.

utilization, is the factor that enhances these stakeholder issues in many of these communities.

There are a number of technologies which can increase both the technical limit to the well construction process and similarly become amiable to stakeholders who are interested in the preservation of the land, the people and the well being of the resources which are the source of their livelihood. In evaluating those technologies, our recommendation is to follow the following steps:

Bridging the Technical to the Nontechnical

T

he need for increased hydrocarbon production efficiency, increased performance and an accelerated timeline are new lifecycle requirements recently introduced to unconventional (or “shale plays”) projects. These are required to achieve production objectives on schedule and budget. These factors differ somewhat from the ones a traditional drilling and production field development exposes to the view of those beyond the industry, thus generating new challenges. Traditionally perceived technical issues are typically centered on well control, hydraulic fracturing fluid composition and other technical discipline improvements on a wellby-well basis. However a set of new challenges have developed as a range of social, economic and environmental stakeholder issues.

These can significantly support or affect the ultimate outcome of an investment.

The following analysis exposes the authors’ views on performance to the technical limit and factors that contribute to the end result, which are beyond the technical limit.

The shale resource development industry in particular, is at a stage where optimizing sustainable project execution in a holistic way is paramount to integrally obtain a “social license to operate”. While many technological solutions and well construction technique improvements continue to be implemented in shale gas fields, one of the primary technical and social concerns is the sourcing and management of water. Scarcity, contamination, and transportation incidents cause great concern among the surrounding communities. In addition, secondary pollution from emissions, destruction of roads and creation of dangerous driving conditions exacerbate negative community perceptions and increased liability.

Sustainable project execution in unconventionals requires an integrated risk management process that addresses two interdependent areas, Technical Risks and Non-Technical Risks. Some of these Non-Technical Risks issues are not new, however the proximity aspect of many Unconventional Resources (UCR) to major urbanised areas; which has helped to transform the economics of UCR

CONCLUSION It is inevitable that we must take a sustainable lifecycle approach. Upfront planning for people, housing, land clearing, roads, and most importantly water should begin during the scoping stages to ensure project execution efficiency. The local community should be heard throughout the development process, emotions that surround the water its management and subsequent communication of that management must be an integral part of the project.

If technology is used to reduce potential issues with water handling, trucking and contamination it can be demonstrated that a much improved and efficient development process has been implemented. This upfront approach will allow us to collaborate as an industry with our communities and can ensure that this holistic approach leads to mutually beneficial relationships between all parties involved in shale gas field development. This way, we can extend a projects technical limit to include all aspects of planning and execution where performance is measured also as a whole.

Jaime Martínez / Business Development Director, ERM Mexico jaime.martinez@erm.com, Tel. +52(55) 5000-2513, www.erm.com

ADVERTORIAL / PUBLIREPORTAJE

Achieving a New Level of Field Development Performance:

1) Understand available technologies that are relevant to the technical challenge to a certain project.

2) Establish technical limit in the well construction process and for the complete lifecycle.

3) Consultation with stakeholders (governments, communities, external entities) as to regional priorities.

4) Find viable technical alternatives (ie., water treatment technologies to allow reuse of water).

5) Transparency in communications and involvement.

6) Alignment and execution of newly agreed way forward.

7) Assessment of technology for feedback.

8) Long Term risk assessment.

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Building a Mexico-U.S. Alliance in the Water Arena:

Synchronizing Policies and Involving the Private Sector

OPINION INTERNATIONAL TRADE / OPINIÓN COMERCIO INTERNACIONAL

By José Ángel Gurría / Secretary-General of the Organization for Economic Cooperation and Development (OECD)

40

R

ivers that flow across national borders can pose significant challenges for the effective management of water resources and the coordination of policies between countries. Water is one of the defining issues in the relationship between the United States and Mexico as the two countries share three catchments – the Rio Grande, the Colorado River and the Tijuana River.

an important role in helping to forge an effective partnership. This article highlights the progress that has been made in binational cooperation on water in the region, the policy opportunities to build further on past achievements, and the role of the private sector.

With the border population projected to increase from around 14 million people in 2012 to 20 million by 2020, these river basins are coming under increasing pressure in terms of their capacity to support the communities on both sides of the border. There are also increasing concerns about how environmental pressures, particularly the prospect of increased climate variability, will exacerbate water availability challenges in the region.

The history of the shared water resources of Mexico and the U.S. is one of both cooperation and coordination. While there have been tensions over water resources over the years, there has also been a recognition that binational cooperation is a fundamental objective for both countries. This is evident in the long history of negotiations, conventions and treaties since the mid-1800s, including the creation of the International Boundary and Water Commission (IBWC), which is responsible for seeking bi-national solutions to water issues in the border region. The 1944 Water Treaty lays the foundation for today’s cooperation over the management of the waters of the Rio

There are clear advantages for both countries to build a strong alliance for the management of water in the border region, and the private sector can play

BUILDING A MEXICO-U.S. ALLIANCE ON WATER

While much of the focus of the cooperation has been on allocating water resources, infrastructure construction and water quality, a trend towards a more holistic and integrated approach to water management has emerged in recent years, particularly with respect to the environmental health of the river basins.

The Minute 319 bilateral agreement, signed in 2012, includes a number of interim cooperative measures for the Colorado River Basin that take steps towards recognizing the dynamic nature of the water resources in the basin.

These measures increase water entitlements to Mexico by a small amount in order to help revive the Colorado River delta, while making the volume of water entitled to Mexico more dependent on rainfall rather than on a fixed volumetric basis. In return, in years when water is abundant, Mexico will be entitled to store some of its water entitlement in Lake Mead, north of its border.

Such developments highlight the growing sense of common purpose and cooperation between Mexico and the U.S. on shared water resource

management. However, there are still many challenges remaining in order for policies to be better aligned between the two countries.

Deficiencies in the way water bodies have been managed in each country and across the border have impaired the water security of several U.S. and Mexican states, sub-basins and water users, generating high risks of shortages, of poor quality water and disruption of ecosystems. Competition to access the Colorado River’s water intensifies as additional demand for water is driven by demographic growth and urbanization downstream, while users upstream want to secure water for energy production and irrigation. It is triggered by climate variability as well, which has affected water availability in the region.

Meeting these challenges will require water governance and water allocation regimens on both sides of the border that are sufficiently robust to provide certainty for consumers and producers, while also being flexible enough to respond to changing conditions.

It is not clear that the institutional arrangements at this stage are “fit for purpose” to accommodate these requirements. International coordination is required to take action where it adds most

OPINION INTERNATIONAL TRADE / OPINIÓN COMERCIO INTERNACIONAL

Grande and Colorado rivers, especially for the regulation of the river flows, and the construction, operation and maintenance of dams (e.g. on the main channel of the Rio Grande).

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a higher return on experience.

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41

value for the community. Experience suggests that further efforts to carefully design water allocation regimens and governance on both sides of the border are required to achieve this objective.

Recent OECD reviews of Mexico’s water policies and environmental performance provided a number of recommendations on how governance challenges can be addressed in order to improve the environmental and financial sustainability of Mexico’s water sector (OECD 2013a, b).

A ROLE FOR THE PRIVATE SECTOR The increasing pressure on water resources requires urgent and innovative solutions to do more and better with less in order to make more efficient use of the available resources (OECD 2012). The private sector has a key role to play in providing investment and generating innovation to augment existing supplies of water, and to increase the efficiency and productivity of water use.

OPINION INTERNATIONAL TRADE / OPINIÓN COMERCIO INTERNACIONAL

There is considerable expertise in water science, technology and management in the private sector, as well as significant private capital that could be available for infrastructure investment and management. Harnessing the potential benefits of increased private sector engagement will nevertheless require a stable, effective regulatory and policy environment on both sides of the border.

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The private sector can play an important role in developing, adopting and deploying innovative approaches to use water more effectively. For example, almost all American and Mexican towns along the border need to augment their water supply. Border cities have traditionally sourced their water from surface and groundwater resources, but new sources of water (such as reclaimed water), more water-efficient technologies and new business models for water service delivery are required to meet the needs of a growing population. Such innovations are often expensive, involving the transportation of water over long distances, and processes such as recycling of water use, nanotechnologies, spatial technologies and desalination. All require technical know-how and substantial investments.

energy technologies. Similar initiatives could be set up to develop innovative approaches for water efficiency, particularly in agriculture, water supply and sanitation. They could go beyond scientific cooperation and stimulate the supply and the demand for water efficient techniques and business models, adapted to each side of the border.

The private sector can also play a major role in financing much-needed water projects in the border region. In the face of growing infrastructure needs and fiscal constraints in both Mexico and the U.S., large-scale private sector engagement is required if the water challenges are to be met; however, it is essential that water and other environmental policy goals are factored into investment policy frameworks and infrastructure planning in order to create the enabling conditions to scale up private sector investments (Corfee-Morlot, et al. 2012).

Ensuring a strong and stable water management framework for the shared water resources in the border region is therefore a high priority if private funds are to flow into the water sector.

It also requires increased focus on market incentives, increasing human and institutional capacity, and better alignment of financial policies, instruments and tools. One advantage of greater private sector investment is that it will increase the pressure on both the Mexican and U.S. governments to continue to improve the water resource management coordination.

MOVING FORWARD The U.S. and Mexico, bound by the rivers that define their common border, face the same challenges and opportunities. The bilateral measures signed in 2012 provide some security for water users; however, as the agreement runs until 2017, now is the right time to assess water governance arrangements across the border, bearing in mind increasing socio-economic pressures as well as the impacts of a changing climate, and to define water allocation regimens in each country that reflect socio-economic priorities. Greater private sector engagement and investment in the region’s water strategies and implementation can provide a further impetus to the process of improved cooperation on the shared water resources.

A recent review of policies to support ecoinnovation in OECD countries (OECD, 2010) highlighted several bilateral (sometimes trilateral, with Canada) scientific and technological cooperation programs between the U.S. and Mexico essentially on energy efficiency and renewable References Corfee-Morlot, J. et al. (2012), “Towards a Green Investment Policy Framework: The Case of Low-Carbon, Climate-Resilient Infrastructure”, OECD Environment Working Papers, No. 48, OECD Publishing. dx.doi.org/10.1787/5k8zth7s6s6d-en OECD (2010), Better policies to support eco-innovation, OECD Publishing, Paris.

OECD (2012), Meeting the Water Reform Challenge, OECD Publishing, Paris.

OECD (2013a), Making Water Reform Happen in Mexico, OECD Publishing, Paris.

OECD (2013b), OECD Environmental Performance Reviews: Mexico 2013, OECD Publishing, Paris.

littler.com 43

Two Nations Indivisible: Mexico and the United States

By Shannon K. O’Neil / Senior Fellow for Latin America Studies, Council on Foreign Relations

W

hile other countries capture the headlines, Mexico arguably affects the United States more than any other nation. From the food on our tables to the parts in our cars, the consumer for our products, and the drugs on our streets, Mexico is now part of Americans’ day-to-day lives.

OPINION POLITICS / OPINIÓN POLÍTICA

Still we struggle to understand our neighbor. Turn on U.S. cable news and story after story recounts gruesome beheadings, spectacular assassinations, and brazen prison-breaks, painting Mexico as a country overrun by drug lords and on the brink of collapse. Overlooked is the more hopeful Mexico, one that has undergone widespread economic, political, and social transformations over the past thirty years.

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Mexico today is a very different place than it was a generation ago. Known for decades for its one party rule, today Mexico is a competitive democracy. Ranking in the top third of every international comparison and index, almost all recognize its free and fair elections. It also boasts checks and balances between the executive, legislative, and judicial branches, as well as a free press and a growing civil society.

Economically, Mexico has made the transition from a closed commodity and agriculturalbased economy to one of the most open in the world, with production now dominated by manufactured goods. And this economic

activity is increasingly integrated with the United States’, producing together everything from cars to computers, airplanes to washing machines, clothing to processed foods.

These political and economic changes have enabled a growing middle class—now numbering just over half of the population.

They own their homes, their own cars, and wide array of modern appliances. These (mostly urban) professionals also invest heavily in the education of their fewer children (averaging two today compared to seven in the 1970s), expanding the average years of schooling and fueling the explosion of private educational institutions.

Despite these advances, challenges remain.

The most serious is that of security, and the well-documented struggle to provide even basic safety in some parts of the country. With over 70,000 killed in the last six years and tens of thousands more missing, violence threatens to undermine the other more positive trends.

Mexico is also held back by monopolies and duopolies—in sectors ranging from telecommunications to tortilla flour to cement— that stymie innovation and investment and raise prices for consumers. Credit is out of reach not just for small but also for good-sized firms, limiting their ability to expand and compete.

Though Mexicans remain in school longer, many question the quality of their education—

Living myself in Mexico during the mid-1990s and then again in the mid-2000s, I watched many of these struggles and changes unfold in real time. Today I visit frequently, and am a close observer of U.S.Mexico relations. I wrote Two Nations Indivisible: Mexico, the United States, and the Road Ahead because I couldn’t find a book that described and analyzed these vast transformations that Mexico has undergone over the last three decades—both the good and the bad—and what they mean for the United States.

The reality today is that our two nations are inextricably intertwined. As a result, it is vital that the United States better understands the post-NAFTA, post-9/11, globalizing Mexico, and works more closely with its neighbor, as both nations’ futures depend on it.

Shannon K. O’Neil is a senior fellow for Latin America Studies at the Council on Foreign Relations and the author of the new book, Two Nations Indivisible: Mexico, the United States, and the Road Ahead. She is Senior Fellow for Latin America Studies at the Council on Foreign Relations (CFR), an independent, nonpartisan membership organization, think tank, and publisher. Her expertise includes U.S.-Latin America relations, trade, energy, and immigration. She is the author of Two Nations Indivisible: Mexico, the United States, and the Road Ahead (Oxford University Press, 2013), which analyzes the political, economic, and social transformations Mexico has undergone over the last three decades and why these changes matter for the United States. She also directed CFR’s Independent Task Force on U.S.-Latin America Relations: A New Direction for a New Reality.

Dr. O’Neil has testified before Congress on U.S. policy toward Mexico and she is a frequent commentator on major television and radio programs. She has also spoken at numerous academic, business, and policy conferences. Her work has been published in Foreign Affairs, Foreign Affairs Latinoamérica, Americas Quarterly, Política Exterior, Foreign Policy, the Washington Post, the Los Angeles Times, and USA Today, among others. Her blog at shannononeil. com analyzes developments in Latin America and U.S. relations in the region.

She has lived and worked in Mexico and Argentina, and travels extensively in Latin America. She was a Fulbright scholar; a Justice, Welfare, and Economics fellow at Harvard University; and has taught Latin American politics at Columbia University. Before turning to policy, Dr. O’Neil worked in the private sector as an equity analyst at Indosuez Capital and Credit Lyonnais Securities. She holds a BA from Yale University, an MA in International Relations from Yale University, and a PhD in Government from Harvard University.

OPINION POLITICS / OPINIÓN POLÍTICA

as Mexican children perform poorly on international tests. And Mexico’s justice system continues to falter, with only one or two out of every hundred crimes ending in a conviction.

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Industry Potential

OPINION ENERGY / OPINIÓN ENERGÍA

By Sergio Guaso, Senior Vice-President of Business Development, Exploration & Production, PEMEX

46

S

ince the 1990s, Mexico has embarked on a path toward economic liberalization through structural reforms. It has an enormous potential for growth; it has an open economy and a consolidated democracy. Thanks to these efforts, Mexico today has a competitive and solid economy with more international treaties than any other country.

Oddly enough, the potential of Mexico’s energy sector remains constrained due to several challenges. There is no doubt that a more competitive and open energy sector —particularly in oil and gas— is an historic opportunity which would unlock the country’s prosperity.

First of all, it’s important to mention that in the 1970s, Mexico was blessed (and cursed) with

PHOTO: CUARTOSCURO

Mexico’s Oil and Gas

Many bright spots Today, the era of easy oil is over for Mexico. After more than 30 years of providing an abundance of oil for Mexico and important revenues for the government’s coffers, Cantarell has entered its decline phase; thus, Mexico faces challenges which also present key opportunities for change and prosperity:

in the U.S. border area. As in the U.S., such development will be best achieved if there are clear incentives and a regulatory framework that is competitive for all type of oil companies. ◦Currently, PEMEX foresees drilling almost 200 wells in the next four years. However, this is not enough—especially considering that the U.S. and Canada drill thousands of wells every year. Shale is one of the keys needed to unlock Mexico’s prosperity.

It demands higher investments than conventional resources and requires state-ofthe-art technology.

◦At a regional level, North America is becoming an energy titan, a powerhouse, as a result of the shale revolution. Mexico alone is sixth in shale resources worldwide with approximately 60 billion barrels of oil equivalent. As for the U.S., forecasts indicate that it will become energy self-sufficient in a decade, and Canada is only second to Saudi Arabia in oil reserves.

◦Mexico’s hydrocarbon potential is enormous throughout the country. In total, Mexico’s proven reserves are 44.5 billion barrels of oil equivalent and its prospective resources are 115 billion barrels of oil equivalent. The Mexican side of the Gulf of Mexico is the least explored basin in the world and we know it holds at least 27 billion barrels of oil equivalent in prospective resources. And this without considering the potential of future joint oil developments in the U.S.-Mexico Gulf of Mexico.

◦Mexico has enormous shale potential which could be exploited with joint operations

◦PEMEX is indeed a strategic partner for deep water and shale projects. It is ranked the 13th

OPINION ENERGY / OPINIÓN ENERGÍA

the discovery of Cantarell, one of the largest offshore oil fields in the world, and thus began the era of easy oil for Mexico. At the same time, Brazil’s Petrobras discovered its offshore fields. While PEMEX was able to easily develop Cantarell, Petrobras’ was much more difficult and prompted entering into joint ventures with oil companies in order to share risk and acquire technology.

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largest company worldwide and has a solid financial standing. ◦In the last few years, PEMEX has achieved remarkable accomplishments. First, since Cantarell peaked in 2004, PEMEX has been able to increase the production of other smaller and more difficult fields by 900,000 barrels of oil per day. This volume is impressive by any standards. Since 2009, PEMEX’s production has stabilized in 2.5 million barrels of crude oil and seven BCF per day.

Since the 2008 energy reform in Mexico, PEMEX has greater flexibility to work with the private sector in E&P projects, which enables PEMEX to develop new capabilities, acquire technology, and most important, increase production.

PEMEX challenges

The priority areas are mature fields, Chicontepec, deep water, and shale. There are key mature fields areas that are being developed through the Integrated EP Contracts, which have had two successful bidding rounds with more than $4 billion dollars in investment in the first six years.

◦It is constrained on several fronts, mainly an organizational structure that is ineffective and a fiscal structure which leaves PEMEX with little money to invest in new E&P projects.

These two factors inhibit PEMEX’s ability to operate as an international oil company, and instead limit PEMEX to operating as a government entity. ◦PEMEX’s organizational structure can be somewhat inflexible and at times uncoordinated. And, although over the past years several improvements have been made, the goal is to introduce best practices in corporate government that are geared towards transparency and operational and financial flexibility.

OPINION ENERGY / OPINIÓN ENERGÍA

How are these challenges being met?

◦Moreover, PEMEX’s E&P incremental capital expenditures have resulted in important oil discoveries and reserves additions which have helped it achieve 100 percent reserve restitution rate in 2011 and 2012. Today, there are 44 billion barrels of oil equivalent.

Despite these significant steps forward and the fact that PEMEX is a highly profitable company and the largest in Mexico and Latin America, it has key internal and external constraints which will take the government’s full attention to overcome.

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With a lower tax rate, PEMEX could double its investment. This would enable it to broaden exploration projects, take on more risk, and invest outside Mexico in the near future. For example, in order to develop shale resources, PEMEX estimates that it needs to drill more than 2,000 wells per year in order to reach 10,000 in the midterm. This requires significant investments.

◦Today, the mandate for all employees is to maximize the economic value of all projects, but this is a concept that is not yet thoroughly ingrained in PEMEX’s organizational culture.

Having a more effective organizational structure focused on value creation is consistent with the fact that PEMEX has an important role as Mexico’s national oil company and is key to economic growth. If PEMEX does well, Mexico will do well.

In terms of the financial importance, PEMEX’s government tax rate is from 70-80 percent, which represents 30 percent of the government’s revenues.

Another strategic project done through Integrated EP Contracts is Chicontepec, an iconic onshore oil field in Mexico, which holds 30 percent of the country’s reserves or 17 billion barrels of oil equivalent. Although PEMEX has drilled more than 3,000 wells, only recently has it started to use horizontal wells with multi-frac stages to boost production. Chicontepec has an enormous investment potential in the long term. The contracts for three areas included in this bidding round were awarded to Halliburton, Diavaz and Petrolite on July 11, 2013.

Of course, deep water prospective resources are one of Mexico’s most treasured assets.

It is estimated that deep water prospective resources are almost 30 billion barrels and greater potential is expected. PEMEX has only drilled several wells, with 3,000 meters in water depth. The first deep water and shale rounds should be launched in 2014.

Besides boosting production in Mexico, PEMEX seeks to consolidate itself as an international oil company by working with other oil companies to increase Mexico’s production, acquire technology, and venture abroad.

Ultimately, it is critical to attract greater investment to Mexico’s oil sector and have the participation of the private sector to promote prosperity for the long term.

NORTHEAST CHAPTER New York, NY Akila Capital LLC www.akilacapitalmanagement.net Sector: Financial Services Conde Construction Inc. www.condeny.com Sector: Financial Services Ennead Architects International LLP www.ennead.com Sector: Architectural, Engineering & Related Services GFI Group www.gfigroup.com Sector: Financial Services Gilberto Chavez-Velazquez Individual member Joel Friedman Individual member Marcatel International www.marcatel.com Sector: Communication, Broadcasting & Telecommunications Marsh & McLennan Companies www.mmc.com Sector: Insurance & Consulting Services Modo Design www.mododesigngroup.com Sector: Architectural, Engineering & Related Services Nearshore Americas www.nearshoreamericas.com Sector: Consulting Services

SP Family Office www.spfo.com Sector: Financial Services Starlight Investments LLC www.starlightinvestments.com Financial Services United Nations Joint Staff Pension Fund www.unjspf.org Association Sector: Non-Profit William B. May www.wbmay.com Sector: Real Estate & Real Estate Development Beamonte Investments www.beamonteinvestments.com Sector: Investment Consulting Kirkland & Ellis www.kirkland.com Sector: Law & Legal Services

Costabaja www.costabaja.com Sector: Real Estate Development in Baja Mexico

SOUTHWEST CHAPTER Dallas, TX

CITD Sector: International Trade

Grupo PIMSA www.mexicaliindustrialpark.com Sector: Industry Rollstone Int’l Hats www.twinstonehats.com Tupperware Brands Corporation Cosmetics/House supplies/cooking supplies Realty Executives InternationalExecutive Property Management www.realtormartin.com Sector: Real Estate MID-AMERICA CHAPTER Chicago, IL C.H. Robinson www.chrobinson.com Sector: Logistics/Shipping

Commercial Regional Properties Sector: Real Estate

Citi Bank www.citibank.com Sector: Banking

Council for North American Policy www.conamp.org Gardere www.gardere.com Sector: Legal

Karlins Ramey & Tompkins LLC www.krtcpas.com Sector: Financial

Paul Hastings www.paulhastings.com Sector: Law & Legal Services

Victor Cardenas Sector: Financial

CortRos www.ghaabogados.com Sector: Law firm

Today’s Print Resources, LLC www.todaysprintresource.com Sector: Printing

PACIFIC NORTWEST CHAPTER Seattle, WA Gary Sears www.stratalifesolutions.com Sector: Medical Field

VALLE DE MÉXICO CHAPTER Mexico City Sterlite Technologies Limited www.sterlitetechnologies.com GUANAJUATO CHAPTER León, Gto.

Ervin Equipment www.ervinusa.com Sector: Equipment

Plante Moran www.plantemoran.com Sector: Accounting firm

Syntek Global, Inc. Tim Willis, Syntek International Distributor www.goxftinternational.com & www.goxftglobal.com Sector: Direct Marketing

Trini Evans www.stratalifesolutions.com Sector: Medical Field

Mahar Tool Supply Company www.mahartool.com Sector: Metalmechanic

CALIFORNIA REGIONAL CHAPTER Los Angeles, CA

For Love and Art www.forloveandart.org

Susana Gonzalez-Murillo www.usbank.com Sector: International Banking/ Financial

DePaul University www.depaul.edu Sector: Education

Jeiccy Hakim Sector: Financial

ARRLO International www.arrlointernational.com Sector: Export/Import Conexiόn con Acciόn www.conexionconaccion.net Sector: Radio

Claveran Law Firm www.claveranlaw.com Sector: Law

THE WOODLANDS - GULF COAST CHAPTER The Woodlands, TX

Nomura Securities www.nomura.com Sector: Financial Services

Repertorio Español www.repertorio.org Sector: Association, Non-Profit

Quaker/PEPSICO www.quakeroats.com Sector: Food Industry

LEFARC www.lefarc.com Sector: Leather Products VITRADE www.vitrade.com.mx Sector: Consulting International Trade

NEW MEMBERS / NUEVOS MIEMBROS

New members to the United StatesMexico Chamber of Commerce

City National Bank www.cnb.com Sector: Banking

MEMBER DISCOUNTS Consult your regional chapter to obtain discounts: VALLE DE MÉXICO CHAPTER Mexico City · 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 · Hoteles Radisson THE WOODLANDS - GULF COAST CHAPTER The Woodlands, TX · The Woodlands Resort & Conference Center

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

INTER-AMERICAN CHAPTER Miami, FL · Interjet · Aeromexico · Sports Club CALIFORNIA REGIONAL 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

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J

ones Day is an international law firm with roots that date back more than one hundred years.

It has been active for decades in Latin American matters and has worked on hundreds of transactions for inbound and outbound clients. With two offices in the region in Mexico City and SĂŁo Paulo, as well as key offices in Atlanta, Miami, Madrid, New York and Washington, Jones Day offers national and international companies in Latin

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America unparalleled legal counsel on their business needs in the region.

knowledgeable about Latin American business, law and culture.

Jones Day’s Latin American Practice brings together more than 60 lawyers from throughout the Jones Day network with appropriate specialties to ensure that the most relevant experience is made available for matters involving Latin America. Many of the lawyers in the Latin American practice are fluent in Portuguese and/or Spanish and are

Many of our lawyers in our Latin American offices have been recognized as leading lawyers in practice areas such as banking and finance, corporate management and administration, capital markets and projects and infrastructure in prestigious legal guides such as Chambers Leading Lawyers, Legal 500 and Latin Lawyer.

Our experience includes: ◦Consumer products ◦Global disputes ◦Energy and utilities ◦Hospitality and real estate ◦Labor and employment ◦Infrastructure and construction

MEXICO CITY Our presence in Mexico City strengthens our ability to serve our clients from Asia, Europe and the United States in Latin America, as well as provide advice in outbound transactions for our national Mexican clients. The Mexico City office, which is considered one of the leading firms in Mexico, is led by Fernando de Ovando and has 14 partners, two of Counsel and 20 associates. These lawyers are qualified and admitted to practice throughout the 31 states of Mexico and the Federal District, as well as regulatory bodies including the Ministry of Economy, the Ministry of Finance and Public Credit, the Federal Competition Commission, the Mexican Stock Exchange, the Mexican Institute of Industrial Property, and the National Banking and Securities Commission.

SÃO PAULO The lawyers in our São Paulo office work together with the best local independent firms to support global clients with inbound investments into Brazil and elsewhere in Latin America, as well as provide legal counsel to Brazilian companies in

◦Manufacturing ◦Mergers and acquisitions ◦Metals and mining ◦Projects and infrastructure ◦Real estate ◦Tax ◦Telecommunications

their international operations. Our São Paulo office operates as a foreign legal consultancy, offering U.S. and Spanish law advice. Our lawyers advise clients in cross-border transactions and foreign law-related issues. The São Paulo office currently has four partners and six associates, and is one of the largest international firms in Brazil.

MIAMI After a long tradition of serving clients in major transactional and litigation matters in Florida, Jones Day opened the Miami office —its first in the state— in May 2013. Our Miami lawyers combine domestic and cross-border transactional capability with in-depth knowledge and industry experience in such sectors as energy, financial services, infrastructure, real estate, and manufacturing. Of great importance to our growing Latin American practice, Miami serves as a strategic gateway for clients doing business in both Latin America and the United States.

MEMBER HIGHLIGHTS / MIEMBRO DESTACADO

◦Antitrust and competition ◦Banking and finance ◦Business restructuring and reorganization ◦Capital markets ◦Corporate criminal investigations, including FCPA

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CHAPTER

EVENT

DATE

PLACE

FOR FURTHER INFORMATION

JULY / JULIO THE WOODLANDS-GULF COAST CHAPTER. THE WOODLANDS, TX

Networking Mixer

25

Marbellas

pete@chambergc.org

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Networking

25

TBD

marlen@usmcocca.org

GUANAJUATO CHAPTER. LEÓN, GTO.

Ciudades Hermanas Los sonidos de Guanjuato

26

Irving, TX

sergio.ponce@usmcoc.org

MICHOACAN CHAPTER. MORELIA, MICH.

Cómo hacer crecer a nuestras empresas

26

Sahuayo, Michoacán

nick.ortiz@usmcoc.org

GUANAJUATO CHAPTER. LEÓN, GTO.

Curso de Responsabilidad Social

31

Instalaciones de la CNEC, León, Gto.

sergio.ponce@usmcoc.org

PACIFIC CHAPTER. GUADALAJARA, JAL.

Cita sector tequilero: Preparación presencia en la International Spiritis Expo de Los Ángeles del mes de octubre

Guadalajara, TBD

pedro.linares@usmcoc.org

TBD

AUGUST / AGOSTO MID-AMERICA CHAPTER. CHICAGO, IL

Hot August Night Cruise

GUANAJUATO CHAPTER. LEÓN, GTO.

Curso de Eficiencia Energética y Producción más Limpia

GUANAJUATO CHAPTER. LEÓN, GTO.

Curso “El arte de negociar”

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

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

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

7

Mystic Blue cruise

Blanca.berthier@usmcoc.org

Instalaciones IECA, León, Gto.

sergio.ponce@usmcoc.org

instalaciones CNEC, León, Gto

sergio.ponce@usmcoc.org

16

TBD

marlen@usmcocca.org

Mexico and India. Two different worlds with great potential opportunities

21

TBD

marlen@usmcocca.org

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Cross Border Seminar, Port of Los Angeles and Port and Ensenada Working Together, Signing and Agreement of Work and Cooperation

23

TBD

marlen@usmcocca.org

PACIFIC NORTHWEST CHAPTER. SEATTLE, WA

Business Breakfast

29

gabriela.michan@techba.org

NORTHEAST CHAPTER. NEW YORK, NY

Spain & Latin America Networking Summer Reception

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

SOUTHWEST CHAPTER. DALLAS, TX

San Luis Potosí Trade Mission

29-31

DFW Airport/San Luis Potosí

marianna@usmcocne.org, alejandro@usmcocne.org swusmx@netzero.com

PACIFIC CHAPTER. GUADALAJARA, JAL.

Reunion ejecutiva USMCOC California Chapter USMCOC Pacific Chapter

TBD

Guadalajara, Place TBD

pedro.linares@usmcoc.org

9-10, 16-17, 23-24, 30-31 13-14

29

SEPTEMBER / SEPTIEMBRE MID-AMERICA CHAPTER. CHICAGO, IL

2013 Double Eagle Awards

5

The Drake Hotel

blanca.berthier@usmcoc.org

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Smart Cities: Guadalajara

5

TBD

marlen@usmcocca.org

NORTHEAST CHAPTER. NEW YORK, NY

VI Mexico Real Estate Investment Forum

6

TBD

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Binational Innovation Forum

18

San Diego, CA

marianna@usmcocne.org, alejandro@usmcocne.org marlen@usmcocca.org

BINATIONAL EVENT

XVII Border Issues Conference

18-19

Washington, D.C.

gabriela.kenny@usmcoc.org

SOUTHWEST CHAPTER. DALLAS, TX

Global Water Summit

24

Crowne Plaza Hotel

swusmx@netzero.com

GUANAJUATO CHAPTER. LEÓN, GTO.

Curso Guia de comercio Exterior

Instalaciones CNEC, León, Gto

sergio.ponce@usmcoc.org

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

North America Manufacturing Partnership, US Commercial Service and the US-Mexico Chamber of Commerce Business Breakfast

26

TBD

marlen@usmcocca.org

26

gabriela.michan@techba.org

Encuentro de Cámaras de Comercio Bilaterales Latinoamericanas Mes de Michoacán en el DF. (muestras culturales, artesanales, gastronómicas, fotográficas, y de productos michoacanos)

TBD

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

TBD

Mexico, D.F.

nick.ortiz@usmcoc.org

3

TBD

marlen@usmcocca.org

3

TBD

11-23

TBD

marianna@usmcocne.org, alejandro@usmcocne.org marlen@usmcocca.org

PACIFIC NORTHWEST CHAPTER. SEATTLE, WA MICHOACAN CHAPTER. MORELIA, MICH.

UPCOMING EVENTS / PRÓXIMOS EVENTOS

MICHOACAN CHAPTER. MORELIA, MICH.

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25-26

nick.ortiz@usmcoc.org

OCTOBER / OCTUBRE CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Preparation Series on China Trip/Negotiations

NORTHEAST CHAPTER. NEW YORK, NY

The Retail Sector in Mexico

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA

Trade Delegation from US to China. Meetings, Conferences and Business Opportunities. The Golden Triangle in China

SOUTHWEST CHAPTER. DALLAS, TX

Business Spanish Certification

BINATIONAL EVENT

Mexico Business Summit – 11th Edition

PACIFIC NORTHWEST CHAPTER. SEATTLE, WA

Business Breakfast

PACIFIC CHAPTER. GUADALAJARA, JAL.

Coaching export-import. Curso de exportacion importacion de laempresa All Export patrocindado

17

20-22 31

TBD

Strasburger Center- Bank of Americas Bldg. 901 Main, 44th Floor Dallas, TX 75202

gabriela.michan@techba.org

Guadalajara, Jalisco

gabriela.kenny@usmcoc.org

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

swusmx@netzero.com

TBD

pedro.linares@usmcoc.org

por la US Mexico

Noviembre 20-22 Binational Event : Binational Meeting Mexico 2013 & Awards Gala Dinner, Mexico, City. Info: gabriela.kenny@usmcoc.org

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