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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, Editor.

PUBLISHING COORDINATORS Executive Director PROMEXE Rafael López Rivera Director of Communications Gabriela Kenny Publishing Manager Cecilia López

CONCEPT & MAGAZINE DESIGN Editorial Coordinator Yolanda Ivette Castillo Vázquez Graphic Designer Areli Jeanette Sayas Hernández

EDITORIAL CONTRIBUTORS Jill Martinez Marinana Rossell Pedro Linares Yesenia Ramos Curiel Claudia Vidal Gabriela Michan

Andreas Quiala Sergio Ponce Pete Garcia Blanca Berthier Josie Orosco Marlen Marroquin


For advertising inquiries, contact: Rafael López Executive Director PROMEXE Gabriela Kenny Director of Communications Cecilia López Publishing Manager Cover photo by FONATUR

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 ( 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. 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.



elcome to this edition of Alliance Magazine, the official publication of the United States-Mexico Chamber of Commerce. It is designed to inform and inspire our audience about the activities of the Chamber and the U.S.-Mexico Cultural and Educational Foundation, as well as update readers about current developments relevant to the U.S.-Mexico relationship. The Chamber hosted its Annual Binational Meeting & Awards Gala Dinner in Mexico City. The theme of the conference, held at the Four Seasons Hotel in Mexico City, was “U.S.-Mexico 2013: The Chamber at 40, NAFTA at 20”. The conference and gala provide an excellent opportunity to meet with government and corporate officials involved in U.S.-Mexico business development, and the article expands on the topics covered during the event, which included Mexico’s Fiscal and Energy Reforms, Economic Development & Competitiveness, Border Security and Foreign Affairs. Some of the distinguished speakers from the public sector included the Mayor of Mexico City, Dr. Miguel Angel Mancera, the Minister of Foreign Affairs, Jose Antonio Meade, and the Undersecretary of International Trade in the Ministry of Economy, Dr. Francisco de Rosenzweig, among others. The gala dinner featured “Good Neighbor” recognition awards to the Commissioner of COFEPRIS (the Mexico “FDA”), and Eduardo Gallastegui, Partner and cofounder of the law firm Gallastegui & Lozano, which has built an enviable reputation of competence, good service and accomplishments, during the almost 30 years of its existence. As you are probably aware, there are significant reforms being discussed and implemented in Mexico. We are about to witness deep changes in fiscal policies, and in the areas of telecommunications, energy and education. The outcomes will certainly impact the U.S.-Mexico partnership. We include information about these issues to brief our readership about these important reforms and enable all of you to understand and follow the progress of such reforms. In this issue, we focus on the telecommunications reform by presenting an extensive overview of the initiative recently approved by Mexico’s Federal Congress submitted by Gallastegui Y Lozano, S.C. This issue includes valuable information on Mexico’s energy policy, and the country’s National Infrastructure Plan released by President Peña Nieto in July 2013. Also included is an update of the Third Council Meeting of the U.S.-Mexico High-Level Regulatory Cooperation Council, the status of the Transboundary Hydrocarbon Agreement, and other articles of interest to the binational business community. We hope you find the content of this issue both informative and enjoyable—we certainly enjoyed preparing it. As we come to the close of 2013—a year that celebrated the Chamber’s 40th anniversary—we take this opportunity to thank all of those who contributed their expertise on U.S.-Mexico matters both to Alliance Magazine and to the Chamber in countless other ways. Your ongoing support for the mission of the Chamber is critical to our continuing growth and success. Sincerely

Albert Zapanta

President & CEO


DIEGO ARAV May He Rest in Peace

The U.S.-Mexico Chamber of Commerce deeply regrets the loss of our dear friend and member, DIEGO ARAV-SALAZAR, one of our most enthusiastic young men who always distinguished himself by his incomparable talent, intelligence, perseverance and likeability. DIEGO always put these virtues at the service of promoting and facilitating efforts to make possible the realization of major projects between Mexico and the United States. With his untimely departure at the age of 24, DIEGO leaves us an enormous legacy of success and positive experiences, which compels us to commit ourselves to replicate his example and conviction. Hand-in-hand with his mentors, Eduardo J. Gallastegui-Armella, old friend and advisor of our Chamber, as well as his wife, Rossana, DIEGO knew responsibility, hard work and enthusiasm, having had the good fortune to reap a significant harvest of personal satisfaction, through his family, the Chamber and his country. The Chamber extends its most heartfelt condolences to the ARAV-SALAZAR and the GALLASTEGUI-SALAZAR families for this great loss, and joins them in a sincere gesture of friendship and solidarity, asking God for DIEGO’S eternal rest and for the consolation and healing of all those of us who had the good fortune to know, love and admire him. For the Chamber it is a great honor to establish a scholarship in his name, “DIEGO ARAV--BUEN VECINO INTERNSHIP,” as a fitting tribute to our unforgettable and dear young friend.


Publicidad Plaza Suites




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FONATUR, Mexico’s National Trust Fund for Tourism Development




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36 • PENDIENTE • Infraestructure plan

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CHAPTER OFFICES THE AMBASSADOR OF GOOD BUSINESS Joe Chapa Vice-President International Trade Development Centers Tel: (214) 329 4559 Fax: (703) 642 1088

Gabriela Kenny Director of Communications 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

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

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

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

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

Southwest Chapter Dallas, TX Vincent Chapa President Josie Orosco Executive Director 901 Main Street, 44th. Floor Dallas, TX 75202 Tel: (214) 651-4300 / (817) 881 0264 Fax: (214) 747 1994

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

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

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

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

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

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

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

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

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

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

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

Michoacan Chapter Morelia, Mich. Nick Ortiz President Lucy Chávez Executive Director Melo 166-B Morelia Michoacan C.P. 58000 Tel: (443) 353 2927


Al Zapanta President & CEO Tel: (703) 752 4751 Fax: (703) 642 1088




Sterlite Technologies Enters into Joint Venture with Conduspar Conductores Eléctricos


terlite Technologies Ltd., USMCOC member and a global provider of transmission solutions for the telecom and power industries, recently formed a joint venture with Conduspar Condutores Eléctricos Limitada, one of the largest companies in Brazil specializing in providing copper and aluminum cables for low- and medium-voltage applications in Latin America. The 50-50 joint venture will be a greenfield facility in Curitiba within the state of Parana, Brazil, for the production of optical fiber cables for the fast growing Latin America markets with a current demand of more than 6.2 million fiber cable miles per year. This joint venture is expected to become a key milestone in Sterlite’s global expansion strategy in the telecommunications sector. “Latin America is an important market for

us from a growth perspective and we are pleased to have this joint venture with a strong and reputed partner like Conduspar. Both the companies share a common vision and bring together complementary strengths for this venture,” said Mr. Pravin Agarwal, Whole-time Director, Sterlite Technologies Limited. Mr. Andre Abage, CEO and promoter of Conduspar who will drive this joint venture added, “We are very excited at the prospect of partnering with the Sterlite group. With Sterlite’s technology and expertise in the telecom cable domain and Conduspar’s local presence, we will create a formidable brand in this market.” The joint venture is expected to start commercial production by the first quarter of the 2015 fiscal year.

Empresas ICA Added to Dow Jones Sustainability Index for Emerging Markets


mpresas ICA, the largest infrastructure and construction company in Mexico, has been recognized as a leader in global sustainability by being selected to form part of the Dow Jones Sustainability index for emerging markets for 2013-2014.


The Dow Jones Sustainability Indices (DJSI) were created in 1999 with the objective to include the most profitable businesses in their respective industries that have adopted strict sustainability criteria in their management systems. Four hundred fifty businesses have been selected from 3,300 that were invited to be evaluated on the basis of their compliance with economic, environmental, social and corporate governance criteria. According to the The Dow Jones Sustainability™ Indices Web site,  “The

indices measure the performance of the world’s sustainability leaders. Companies are selected for the indices based on a comprehensive assessment of long-term economic, environmental and social criteria that account for general as well as industry-specific sustainability trends. Only firms that lead their industries based on this assessment are included in the indices. The indices are created and maintained according to a systematic methodology, allowing investors to appropriately benchmark sustainability-driven funds and derivatives over the long term. “The family includes global and regional broad market indices, subindices excluding alcohol, gambling, tobacco, armaments and firearms and/or adult entertainment, and global and regional blue-chip indices”1 1

The DJSI aids investors in integrating sustainability criteria into their portfolios, motivating other businesses to adopt better management practices. Currently, about $6 billion are invested in businesses such as investment funds, mutual funds, bonds and ETF’s in 15 countries around the world, based on the DJSI. To be part of this index signifies an important recognition of the work of all the people who are part of Empresas ICA. The U.S.-Mexico Chamber of Commerce congratulates ICA, S.A.B. de C.V., a binational partner and Chamber member for its commitment to sustainability that raises its value to society and the environment.

From the the Dow Jones Sustainability™ Indices overview,

el petróleo


uchas empresas petroleras buscan oportunidades de negocios en México, ¿por qué? Porque hay mucha demanda de tecnología para aprovechar los bastos recursos energéticos con los que contamos en nuestro país. Como toda empresa, las compañías petroleras cuentan con recursos humanos que requieren bienes y servicios que a su vez los demandan para sus familias, como educación, salud, vivienda, entretenimiento entre otras, sus oficinas o estaciones requieren mantenimiento o asesoría para su construcción o ubicación. Sus productos requieren ser transportados, necesitan equipo para su procesamiento o almacenaje: válvulas, tornillos, bombas, enrejados, herramienta, calzado y vestimenta de seguridad, etc. Todo para ellos es inversión y por tal razón es importante que cuenten con asesores legales y contables, servicios de seguridad, traslado de valores o asesores en riesgo y fianzas. Profesionistas independientes o un equipo de expertos con conocimientos de negocios en México es lo que necesitan estas empresas para traer su capital a nuestro país.

observaciones de la vida diaria, identifica cuál es tu talento, especialidad o hasta hobby favorito, nunca olvides que el que disfruta el trabajo no lo ve como tal. A través de la identificación de tus fortalezas podrás establecer cuál será el giro de tu negocio, recuerda que las posibilidades son innumerables, o tan sólo identifica que requieres para tu movimiento cotidiano y tal vez esté ahí la respuesta. ¿Has pensado en la representación comercial de empresas en México? Muchas marcas de maquinaria, válvulas, equipos, lubricantes, productos químicos y servicios relacionados con la industria petrolera desean expandir su área de ventas a través de un representante local, y tú puedes ser el medio por el cual una marca reconocida internacionalmente llegue a la industria petrolera mexicana. Puedes ganar con ellos y ellos pueden ganar contigo. 2. Conoce a tu cliente No estoy hablando de una empresa petrolera en especial, estoy hablando de todas, conoce sus necesidades y forma de operación.

¿Por qué te debe interesar esto? Porque eres un emprendedor en busca de oportunidades. Para hacerlo más sencillo explicaré en tres fases cómo encontrar ese negocio que te está esperando para que lo hagas grande.

Por ser una industria enfocada en extracción, refinación y comercialización de petróleo sus actividades son muy similares. Checa sus páginas web, conoce sus servicios y su mercado, el perfil de su personal y ahí detectarás necesidades que pueden ser cubiertas por un profesional como tú.

1. Identifica tus fortalezas Con tu experiencia profesional y

3. Una buena venta es la clave Aunque no estés muy familiarizado con

la industria petrolera, puedes acercarte a ellos para reunir más información que le dé a tu producto ese valor agregado que están buscando, y a ti el argumento de venta más conveniente para tu cliente potencial. Pero, ¿dónde los encuentras? Alrededor del mundo se llevan a cabo muchas convenciones petroleras donde acuden miles de compañías y se dan conferencias de los temas de importancia de la industria. Uno de estos eventos es la OTC (Offshore Technology Conference) que se llevará a cabo del 5 al 8 de mayo del 2014 en Houston, como cada año. En ella podrás conocer la industria, los altos mandos de las compañías trasnacionales y los detalles técnicos de su operación, pero sobre todo podrás ofrecer tu producto de manera directa y personal. En México, el Congreso Mexicano del Petróleo también logra reunir importantes empresas del ramo además de directivos y funcionarios de la industria nacional e internacional. Éste se llevará a cabo del 4 al 7 de junio del 2014 en Acapulco, Guerrero. Aprovecha las oportunidades que la industria energética te brinda, adéntrate en el universo de información que existe en línea, acércate a quienes conocen los negocios petroleros y encuentra tu nuevo negocio exitoso.

CARLOS CAMPOS ECHEVERRÍA Abogado egresado de la Escuela Libre de Derecho, Especialista en Negocios de la Industria Petrolera y Gestiones de Alto Nivel CEO de la firma de abogados BC Legal Business Consulting


No es sólo sobre


Wind and Biofuels:

Alternative Energy Resources


exico’s states that border the United States are endowed with renewable energy potential from both natural and man-made sources. Solar power will provide an inexhaustible and efficient energy supply, but considerations of cost could deter a concentrated development of this resource in the near future. Wind and biofuels from Municipal Solid Waste (MSW) are ready to be developed and can provide reliable and comparatively low-cost alternatives to traditional energy supplies from hydrocarbons. In order to maximize the benefits from these three emerging energy sources, it is important to create employment and business opportunities that will generate economic growth and contribute to the general welfare of society.


Wind Projects


There are wind projects in Baja California that have implemented effective best practices that should be studied by state and municipal authorities that are considering similar projects and incorporat those practices into future

plans for renewable wind energy. The private sector has learned these lessons and is now increasing social acceptance and community buy-in for future acceptance of projects of this type. Among the many benefits to be gained from this approach are positive employment prospects both in terms of numbers of jobs created and the quality of those jobs. The existence of a skilled labor force in the border region should be complemented by the promotion and development by state authorities and local universities that offer curricula focused on renewable energies. There is enormous potential for clusters of companies and universities to develop partnerships that will foster the long-term growth wind energy. The border states have thousands of megawatts (MW) of potential wind development. For instance, the Mexican state of Tamaulipas projects that almost 2,000 MW will be developed in the next decade, with the potential for many thousands of construction jobs, as well as hundreds or thousands of permanent

positions in the operation, management and servicing of wind plants. Municipal Solid Waste (MSW) Another source of renewable energy is from Municipal Solid Waste (MSW). The decreasing number of locations for new landfills and the increasing pressure on local, state and national authorities to find solutions for garbage disposal and the attendant negative social, environmental and health impacts from open landfill sites have generated an interest in MSW energy resource development. An important and unexplored source of renewable energy, MSW consists of the macro-encapsulation and final confinement of municipal waste and utilization of the resulting methane and liquid fuels to produce electricity. Conclusion Renewable energy development in the border states presents Mexico with a unique opportunity to make gains on a number of fronts: environmental impact, energy generation, employment and wealth creation, and social participation. In order to achieve this, governments, business and communities are engaging fully with each other in order to reduce friction and benefit from complementary knowledge and skills. LUIS MORRIS OWNER, ABC WORLDWIDE SUPPLIER, LLC

Sources: SENER, “Energías Renovables para el Desarrollo Sustentable en México,” México, 2009, Cámara de Diputados del H. Congreso de la Unión, “Ley para el Aprovechamiento de Energías Renovables y el Financiamiento de la Transición Energética, México,” DOF 28-11-2008, www.diputados.gob. mx/LeyesBiblio/pdf/LAERFTE.pdf. Bransby, David. “The Garbage Anomaly.” Biofuels Digest. 24 Nov. 2011. Web. 08 Dec. 2011. Energías Renovables en México, edited by Omar Romero-Hernandez, Sergio Romero-Hernandez & Duncan Wood, USAID/ITAM, Mexico City, 2011. (Good Neighbor Environmental Board in Las Cruces, New Mexico in September 2011, the Council of State Governments in Seattle in October 2011, the Border Energy Forum in El Paso, Texas in October 2011, the Border Legislators Conference in Saltillo in November 2011, and at the Woodrow Wilson International Center for Scholars in December 2011)

The Realization of Smartphones as the Best

Business Building Tool


exico’s businesses are moving in the direction of increased advertising of their products at the same time that consumers buying power is also growing. One of the major factors that increasingly affects advertising strategies and consumer habits is the emergence of smartphones. Kantar Worldpanel, an international leader in analysis of market trends and consumer buying patterns, confirmed this information in their survey about smartphones. Kantar noted that Mexico is one of the world’s major smartphone consumers, demonstrating the potential for response to mobile advertising. Enriching Mexico’s e-Commerce Potential

Despite these hindrances, AMIPCI the Mexican Internet Association, noted a 46 percent growth in e-commerce sales in Mexico totalling $6 billion through the incremental utilization of the Internet—specifically mobile Internet shoppers who represented 47 percent of that total. projected $8 billion in sales for 2013 with consistent growth through 2016, resulting in estimated annual sales of $13 billion.

Solutions to address the hurdles on the path to reaching the full implementation of e-commerce for Mexico’s mobile market include additional payment options like cash on delivery, flexible installment plans, increased online security enforcement, delivery-tracking codes, and the redesign of Web interfaces with a more user-friendly and responsive layout for mobile implementation and marketing. Slowly Changing Consumer Behavior Despite the current limitations, smartphones are slowly shaping the behavior of Mexicans in how they purchase products and services advertised on their mobile devices. A study from Google Mexico shows that 20 percent of the Mexican population has a smartphone, and 65 percent of those use their smartphones as a search tool. Thirty-eight percent of these searches are product/service information, e.g. restaurants, travel, job and real estate. This data is crucial for both American and Mexican companies in developing their marketing strategies. As important as the raw numbers

of smartphone users is knowing the demographics of those users. Those individuals who use their mobile phones for product and service searches have full-time jobs; therefore, they have the power to make independent buying decisions, making them the best targets for online advertising. Google Mexico’s independent research showed that the best demographic targets are married Mexican men, 25- to 34-years old, who live in urban areas. Google’s survey also showed that 41 percent of these Mexican smartphone users are college graduates, 71 percent have full-time jobs and 40 percent have a $600 - $1,900 monthly gross income. These numbers underscore the need for entrepreneurs—especially from America and Mexico—to take advantage of the opportunities related to the growing mobile user market. They are also a call to action for companies to make the development of mobilefriendly Web sites a priority in order to attract their potential customers. Businesses that heed this call will be well-positioned to stand out from their competition and increase their marketshare.


Despite Mexico’s ranking as one of the top 10 international emerging markets in the mobile industry, there are several obstacles that still need to be overcome. Specific impediments are the lack of access to online payment mechanisms combined with an immature retail industry that lacks the technical competency to market products online which leads to limited choices for online products. Another critical issue that must be remedied is the need for better transaction security. Due to these limitations, mobile marketing is virtually untouched; however, the bright side, there are hidden business opportunities that are destined for realization as cited by Cisco’s Global Head of Financial Services Consulting, Philip Farah.



Forty Years & Good Neighbor Awards From the Beginning Now


Organization of American States



he last issue of Alliance Magazine (Year/Año 9, No. 19, pages 20-24), in recognition of the fortieth anniversary of the U.S. Mexico Chamber of Commerce (USMCOC), provided a detailed history of the origins of the organization and described the signature programs that have been developed over those four decades. But that is just part of a very large picture. From its establishment in 1973 by a group of distinguished Mexican and American businessmen to the present, the Chamber continues to be a unique

nonprofit organization which works to promote trade, mutually profitable investments and joint ventures for business interests on both sides of the border. To this end, USMCOC opened national offices in Washington and Mexico City. Seven years later, in 1980, the first regional chapter office was established in Los Angeles. Since that time, additional chapters have been opened across U.S and Mexico bringing the total to 17, with the U.S. having nine and Mexico with eight. Current membership has grown to approximately 1,500 members.

The Chamber is governed by a binational board comprised of representatives from more than fifty international corporations and professional firms. Among them are Aeromexico Airlines, American Airlines, AT&T, Azteca America, Citibank, Banamex USA, Exxon/Mobil Corporation, Ford Motor Company, General Motors Corporation, McDonald’s Corporation, Motorola, Northrop Grumman Electronic Systems International, Inc., Royal Caribbean International, Teléfonos de México, The Coca-Cola Company and Verizon.

2000 Awards › Third from left, The Honorable Julia Carabias, Mexico Secretary of Environment, Natural Resources and Fisheries; and Jose Angel Gurria, Mexico’s Secretary of Finance.

2005 Awards › Left to right: Ambassador. Carlos de Izaca; Eduardo Bours, Governor of the State of Sonora; Enrique Iglesias, President of the Inter-American Development Bank; John Snow, U.S. Secretary of the Treasury; Francisco Gil, Mexico’s Secretary of the Treasury and Public Credit; Louis Escareno, Chairman and COO, Duty Free Americas; and Al Zapanta.

2006 Awards › John McCarthy, Director of Fonatur with Ambassador Carlos de Izaca and Al Zapanta.

2007 › Orlando Alaniz, Regional Sales Manager, Bell Helicopter Textron; Al Zapanta; Genaro Garcia Luna, Mexico’s Secretary for Public Safety; Steve Salazar Dallas Council Member, District 6; and Eric Rojo, Vice President, USMCOC.

2006 Awards › Ambassador Carlos de Izaca; Silvestre Reyes, U.S. Congressman, 16th District-Texas; and Al Zapanta.

2007 Awards › John Tyson, President & CEO of Tyson Foods; Al Zapanta; and Ambassador Arturo Sarukhan.

2007 Awards › Bernardo Quintana Issac, Chairman of the board of Empresas ICA.

2007 Awards › Ismael Hernandez, Governor of the State of Durango.


2000 › Attendees at the 2000 GNA gala.


2008 Awards › John Negroponte, U.S. Deputy Secretary of State.

EVENTS, ACTIVITIES AND COMMUNICATIONS In the effort to encourage the development of business between U.S. and Mexico, the USMCOC and its chapters organize and participate in trade fairs and trade missions, host seminars and forums that not only offer networking opportunities but also share updated information on social, economic and political topics much of which is shared in this magazine. The Chamber provides bilingual electronic and print resources to give members up-to-date intelligence on the U.S.-Mexico market and to keep members informed of programs, services and business development efforts. Research resources, white papers on issues, information about business opportunities are all accessible through a state-of-the-art Web site (

2008 Awards › Right to left: Dennis Nixon, Chairman and CEO, International Bank of Commerce; Ambassador John Negroponte, U.S. Deputy Secretary of State; Ambassador Arturo Sarukhan; Enrique Berruga, Vice President for Corporate Affairs and Communications, Grupo Modelo; Courtney Gregoire, daughter of Chris Gregoire, Governor of the State of Washington; Fidel Herrera, Governor of the State of Veracruz; Anna Escobedo Cabral, Treasurer of the United States; Carlos Salinas de Gortari, Former President of Mexico; Mike Smith, President of The Washington Center; Israel Hernandez, Assistant Secretary of Commerce for International Trade and Promotion and Director-General of the United States Commercial Service; Al Zapanta; and Mike Carricarte.




One of the Chamber’s major events every year is the presentation of the Good Neighbor Awards, intended to honor the individuals and corporations that have led the way toward greater cooperation and partnership. The ceremony takes place each year at a black tie gala generally held at the magnificent Organization of American States Building in Washington, D.C., a venue that symbolizes a united hemisphere incorporating thirtyfour member nations.

2009 Awards › Juan Pablo Vega Arriaga, President Naviera Integral.

2009 › Left to right: Governor Eduardo Bours, State of Sonora; U.S. Secretary of Homeland Security Janet Napolitano; Catherine Koemzel of Northrup Grumman; and Al Zapanta.

The first awards were presented in 1985 to Hector Hernández, Secretaría de Comercio y Fomento 2010 Awards › Al Zapanta; Javier Lozano, Mexico´s Secretary of Labor; and Ambassador Arturo Sarukhan.

Here is just a short sample of past recipients:

・ Ray LaHood, U.S. Secretary of Transportation ・ Enrique Peña Nieto, Governor, State of Mexico ・ Janet Napolitano, U.S. Secretary of Homeland Security ・ John Negroponte, U.S. Deputy Secretary of State ・ Carlos Salinas de Gortari, Former President of Mexico ・ John McCarthy, Director General, FONATUR ・ Enrique Iglesias, President of the Inter-American Development Bank

2010 Awards › Lorena Ochoa, top-ranked female golfer in the world, and Andrés Conesa, Chief Executive Officer, Aeromexico.

2011 Awards › Juan Rebolledo, Vice President, International Affairs for Grupo Mexico; Mike Carricarte; and Al Zapanta.

2012 Awards › Mexico’s President Felipe Calderon.

・ Colin Powell, U.S. Secretary of State ・ Alan Greenspan, Chairman U.S. Federal Reserve ・ Ernesto Zedillo Ponce de León, Former President of Mexico ・ Ronald Reagan, Former President of the United States ・ Bill Bradley, U.S. Senator, NJ ・ Kika de la Garza, U.S. Congressman, TX ・ Paul Volcker, Chairman, Federal Reserve Board ・ Donald Petersen, President, Ford Motor Company.

2010 Awards › Hilda Solis, U.S. Secretary of Labor; Congressman Solomon Ortiz (27th-TX) U.S. Congressman 1983-2010; and Antonio Villaraigosa, Mayor, City of Los Angeles, CA.

2011 Awards › Solomon Ortiz, U.S. Representative 1983-2010.

2012 Awards › Idelfonso Guajardo, Mexico’s Secretary of Economy, and Al Zapanta.


Industrial and Ambassador William E. Brock, U.S. Trade Representative. In 1993, they were renamed the “Good Neighbor Awards.” Since that time, the Chamber has presented the award to scores of recipients from many areas of business and service: ministers, ambassadors, governors, congressmen, former presidents and corporate CEOs.


Houston-based Calvetti, Ferguson & Wagner, P.C. is a full-service CPA firm focused on the oil and gas, energy and multinational sectors. CF&W is part of PrimeGlobal, an association of independent firms throughout the world and works with CPA firms throughout Mexico.

Energy Policy in Mexico: Planning and Tax Considerations for Doing Business in Mexico


Mexico’s Department of Energy: PEMEX and CFE’s Challenges and Opportunities



he Secretaría de Energía (“SENER”) is charged with managing Mexico’s energy policy. It is responsible for the development of the nation’s energy resources in a competitive, high-quality, sustainable, economically viable manner that is environmentally sound. SENER has to meet projected demand by developing the oil and gas, electricity, biofuels, wind, geothermal, nuclear, coal-fired, hydro, combined

cycle, and other sources of energy. Two of Mexico’s most important revenue centers, Petróleos Mexicanos (PEMEX) and the Comisíon Federal de Electricidad (CFE), are attempting to initiate business transformations to reverse some of the poor metrics that have plagued the entities over the years. Both PEMEX and CFE operate in a very competitive, high-tech industry. As such, they must find ways, such as PEMEX’s integrated contracts, to expand oil and gas exploration and production. President Enrique Peña Nieto continues his efforts to reform

the oil industry in Mexico, which will open up significant opportunities for U.S. companies and, in particular, Houston-based companies. Under reforms passed in 2008, exploration and production activities will no longer be subject to the traditional government procurement procedures. The newly-enacted law and regulations contain ad hoc provisions on procurement and contracting. There are some new features of the procurement program: (1) a comprehensive registry for contractors; (2) pre-qualification proceedings; (3) new bid evaluation methods; (4) new

We believe additional U.S. companies will need to learn more about working in Mexico and being part of the team that will help PEMEX and CFE meet their objectives. Taxation of Foreign Oil and Gas And Other Service Companies in Mexico The structure of any business interested in providing services or products in Mexico with respect to contracts with PEMEX or CFE depends on the facts and circumstances and the contractual requirements it must meet. These include having a structure that allows for the efficient flow of capital funding, tax efficiency, and, most importantly, the manner in which a company participates in any bidding process to render such services or products. Generally, a foreign company in Mexico has various alternative structures available for participating in any bidding process to provide services and products in Mexico: 1. Establish a Mexican subsidiary which would generally subcontract related and non-related parties to provide services or products; 2. Operate as a foreign entity that derives income from services or products sold to Mexico residents without triggering a Mexican taxable presence through a “permanent establishment”; or 3. Create a joint venture with a Mexican partner. As with any bidding process, PEMEX or CFE will require that any entity or group of entities must be able to demonstrate a proven record as part of their history and business services and products in order to enter the bidding process. Hence, the joint venture alternative becomes relevant in forming strategic alliances with local and/or foreign parties in order to participate in the bidding process.

whether or not a foreign enterprise has created a permanent establishment (PE) in the other jurisdiction. The existence of a PE is important because, if any enterprise establishes sufficient contact with a contracting state to a level of a PE, then it gives the contracting state the right to tax the enterprise’s income attributable to the PE.

or ships used for exploration of natural resources, including services related to inspection, projections or supervision related to such services, a PE is deemed to exist to the extent such services take place over 183 non-consecutive days over a 12-month period.

A PE is any location through which the business of an enterprise is wholly or partly conducted or through which personal services are rendered. This includes, among others, a place of management, a branch, an office, factory, workshop, a mine, an oil and gas well, a quarry, or any other place of extraction of natural resources.

A business may decide to subcontract services provided to PEMEX or CFE. A Mexican subcontractor will be deriving income from Mexican sources to the extent services are provided in Mexico and it may be subject to Mexican income tax and value–added taxes.

Additionally, if a company does not have a fixed place of business in Mexico, it may have a PE when certain activities are carried on by an agent or an other person acting on behalf of the enterprise. An agent’s activities may give rise to a PE if such person has, and habitually exercises, an authority to finalize contracts that are binding on the enterprise. Generally, a taxpayer may perform certain administrative and auxiliary activities through a fixed place of business without establishing a PE. These include the following: 1. The use of facilities for storage, display, or delivery of merchandise belonging to an enterprise; 2. The maintenance of a stock of goods belonging to an enterprise solely for the purpose of storage, display, or delivery; this includes the maintenance of stock of goods or merchandise belonging to a Mexican resident for purposes of processing by another person; 3. The maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise; 4. The collection of information or engaging in other activities that have a preparatory or auxiliary character for the enterprise, such as advertising or supplying information; activities that have a preparatory or auxiliary character may include scientific research.

Permanent Establishment The U.S./ Mexico income tax treaty, contains an article (Art. 5) describing

For services related to short-term building sites, construction, demolition, or installation projects, or drilling rigs

Mexican Taxes

Distributions by a Mexican entity may be subject to tax in Mexico to the extent these amounts don’t belong to Cuenta de Utilidad Fiscal Neta (CUFIN) or Cuenta de Remesas de Capital (CUCA). Cross-border rents and royalties are subject to withholding which is capped at 10 percent under the U.S./Mexico Treaty. As of 2008, Mexico replaced its asset tax with a new flat tax called Impuesto Empresarial de Tasa Unica (IETU). It has been argued that the tax is similar to the U.S. alternative minimum tax. The flat tax is calculated on a cash flow basis, which demands careful planning of cash inflows and outflows as poor timing can result in an unnecessary IETU tax liability. In particular, service providers to PEMEX and CFE must be able to project out financially not only the earnings but the cash flow associated with the collection of accounts receivable and payment to vendors. Deductibility of Expenses The Ley del Impuesto sobre la Renta (LISR or Mexican Income Tax Law) requires that all supporting documentation related to business expenses must be maintained and must meet several formal and specific guidelines, such as being able to provide evidence that the service was actually rendered and the necessary withholding took place. Mexico also imposes a 3 to 1 debt to equity guideline with respect to debt in connection with related party interest expense deductions. The Mexican tax authority will question the deductibility of


rules for procuring standardized service or goods; (5) post-bid negotiation options; and (6) the opportunity for substitution consortium members.


certain expenses with foreign-related parties if such are not supported by adequate documentation and a transfer pricing analysis. As such, the service providers or contractors must establish the necessary controls to ensure their Mexican operations meet these specific documentation requirements. Engineering, Procurement, and Construction Matters A common practice with major projects such as those needed by PEMEX or CFE is the use of engineering, procurement and construction—or EPC—contracts. EPC contracts are turn-key projects, having a combined scope of work involving services and supplies. Broadly, an EPC contract encompasses the following key activities:


・ Engineering – preparation of designs, plans, and technical specifications of equipment, preparation of performance standards, maintenance and training manuals, designing and planning layout, document delivery schedules of equipment, instructions for erection of structures, etc. ・ Procurement – provision of equipment, procurement from third parties, clearing of goods at ports of entry, delivery of such goods to sites, provision of spare parts. ・ Construction – Erection of structures, commissioning, testing and completion of facilities, correction of defects.


As a project owner, PEMEX or CFE would prefer to have a single point of contact. The price of the project is determined upfront and helps the project owner make the decision on the lowest price possible while keeping in mind all possible tax and other exemptions or incentives. With an EPC contract, the project owner is protected pursuant to a liquidated damages provision in case of any default by the contractor. Finally, the contractor has the ability to subcontract more than one contractor under a single umbrella agreement contract since no single contractor meets all the necessary requirements for the project. On the other hand, the contractor’s concerns relate to performing a profitable and timely service. Because

Mario Garcia, CPA, has over 10 years of public accounting experience serving oil and gas companies. He is a graduate of the University of Texas at Austin where he obtained a Masters in Taxation and worked for Big 4 firms servicing international corporate clients. He can be contacted via e-mail at or at (713) 726-5719.

the marginal profit can be locked in upfront, a contractor will want to complete the project on time to minimize overruns. Furthermore, the contractor wants to minimize compliance obligations. In an EPC contract, a whole gamut of both direct and indirect taxes apply. Since the contracts may be for the supply and sale of goods, installation, services, engineering, designing, or a combination of all these, many tax issues will arise in the classification of the payments, which may compromise the tax position for both the contractor and the project owner. Taxes that may apply include income taxes, customs duties, excise duty, service tax, valueadded tax, and employment taxes. Temporary Importation Service providers to PEMEX and CFE may avail themselves of the temporary importation rules as allowed by Mexican law in making sure that their equipment is properly and timely imported. Generally, when goods are imported into Mexico, import VAT and customs duty may be due. (Despite NAFTA, customs duties may apply to goods that lack the necessary domestic content.) In any case, VAT can be an important cash-flow consideration. These have to be paid and secured before the goods can be released from customs’ control for importation. The temporary importation law defines the periods of time for temporary

importation depending on the type of asset involved. For example, a period of 10 years may be available for ships used in the transportation of passengers, goods, or special ships such as drilling rigs. Alternatively, the general period of six months is available for assets to be used in Mexico by foreign owners. Above all, the importation of assets by either a Mexican resident company or a PE is of high importance and must be accomplished within all legal parameters to continue to ensure the future deductibility of any related costs. Mexico applies strict documentation requirements. Human Capital and Labor – Industry Expertise The services demanded by PEMEX and CFE will require individuals with specific knowledge in the energy industry. Generally, the exploration and production personnel will rotate frequently and work longer hours than usual. As they rotate, they may return to their country or to other places within Mexico. For a foreign company, this industry expertise creates tax ramifications to them and the employees as they render their services. For instance, some of the tax issues to consider include potential unwanted PE risks in Mexico, source of payment for compensation, and tax residency of the personnel. Conclusion According to the U.S. Census Bureau, Mexico is among the top three trading partners of the United States behind Canada and China. This trend continues to grow as more and more companies shift their operations from China and elsewhere to Mexico as a better alternative for their proximity to the United States and plentiful labor force among other factors. Many Houston-area companies in the energy sector have the potential to add value and grow this sector of the economy in Mexico as part of meeting the internal and external demand for energy and related infrastructure. Therefore, it is imperative to continue the efforts of establishing and nourishing the business relationships between the two countries.

Binational Conference & Gala

Mexico City, Nov. 18-20, 2013

The USMCOC capped off the festivities to celebrate 40 years of existence with its Binational Conference and Good Neighbor Awards Gala held in Mexico City November 18-20. As with its annual mid-year meeting in Washington, D.C., the conference brings together chamber members, board members and distinguished guests from the private and public sectors from both the U.S. and Mexico. Without question, the highlight of the two-day event was the Gala, where individuals who have made significant contribution to U.S.-Mexico relations are presented the highly-regarded awards. Details about this important and fun event are mentioned below.


Dorothy Lutter, Minister Counselor for Commercial Affairs, U.S. Embassy Mexico City; Jose Garcia, President of the USMCOC Valle de Mexico Chapter; Al Zapanta, CEO of the USMCOC; Francisco N. González Díaz, General Director of ProMéxico and Alfonso Garcia Cacho, Executive Director of the Mexico Business Summit.



welcome reception was held the first evening in the Zona Rosa at the Four Seasons Hotel near historic downtown. The Four Seasons was the site for all events and activities during the conference. With Tequila Revolución as the sponsor of the reception, a variety of margaritas was available—and enjoyed—by attendees. Though unplanned, it was a serendipitous happening, as that day, November 18, was the official Revolution Day celebration and an important holiday for Mexico. The reception was not only fun, but permitted newcomers and the USMCOC family from both sides of the border to chat, network and enjoy the great surroundings and the relaxed ambiance of the event. MEXICO CITY MAYOR


Dr. Miguel Angel Mancera Espinosa was the keynote speaker at the opening breakfast session on Tuesday morning. He complimented the USMCOC for the work undertaken over the last four decades relative to binational trade and investment benefiting both countries. Mancera spoke about the positive impact of the U.S.-Mexico relation, commenting on how it has affected development in Mexico City. Mancera then offered words of encouragement for the Chamber to continue its mission of working on bilateral issues. In this


Dr. Gerardo Esquivel, professor at Colegio de México.

connection, he mentioned the City’s Secretary of Economic Development, Salomón Chertorivski Woldenberg, who was also in attendance. He offered the City’s willingness to work with the Chamber to pursue ways to advance issues and projects of mutual interest. MEXICO’S ECONOMIC DEVELOPMENT AND COMPETITIVENESS The breakfast was followed by a two-part panel entitled: “Mexico’s

Economic Development and Competitiveness.” After a fact-filled presentation by Dr. Gerardo Esquivel, professor at Colegio de México, who informed participants about the current state of the Mexican economy and its prospects, the General Director of ProMéxico, Francisco N. González Díaz, followed. González Díaz addressed Mexico’s position and development regarding exports and international trade. He commented that trade agreements implemented by the country are the underpinning framework that is driving Mexico’s success in international trade. He added that, despite the growth, additional work remains in order to continue enhancing Mexico’s performance. Next, ProMéxico and the USMCOC proceeded to sign what was described as an important milestone, a collaborative agreement on the Connect Mexico project, an initiative of the USMCOC to establish an electronic trading platform (e-commerce) intended to significantly increase the revenue potential of small and medium-sized Mexican companies. The objective of Connect Mexico is to consolidate the potential of various industrial sectors and connect them under a single system so that they may act together, reducing direct and

Dr. Miguel Angel Mancera Espinosa, Mexico City Mayor.

ENERGY REFORM Two presenters addressed Mexico’s Energy Reform, a timely—though evidently still sensitive—issue in both the public and private sectors in the country, as the Mexican Congress continues to debate the current initiative presented by the President.

Al Zapanta, and Francisco N. González Díaz signing the Connect Mexico project agreement.

indirect costs. Similarly, by including access to a supply chain with lower costs (transport, logistics, warehousing) and information technology (supply chain and business solution application), the value and profits of participating companies will be enhanced. “The Cooperation Agreement between the Chamber of Commerce and ProMéxico is a timely response to the growth facing our bilateral trade,” said González. Presentation by Ministry of Economy

Enrique Marroquín, President and CEO of Hunt Mexico, gave a private sector perspective on the issue. The second presentation was made by Alejandro Amerena Carswell, Director of International Affairs in Mexico’s Federal Ministry of Energy. Amerena Carswell summarized the legislation currently before Mexico’s Congress. He also provided a more detailed description of the 20 specific areas of impact in the contemplated reform.

Representing Mexico’s Secretary of Economy and the office of the President of Mexico, Dr. Francisco de Rosenzweig Mendialdua, Undersecretary of International Trade, Ministry of Economy, gave a thorough account of Mexico’s commercial activities, both domestic and international. Rosenzweig, an unquestioned and renowned authority on Mexico’s historical, current and future prospects on the subject of commerce, trade and investment, explained complex issues in a way that was easy for participants from both countries to understand.

Dr. Francisco de Rosenzweig Mendialdua, Undersecretary of International Trade, Ministry of Economy.

Enrique Marroquín, President and CEO of Hunt Mexico.


Alejandro Amerena Carswell, Director of International Affairs in Mexico’s Federal Ministry of Energy.


Héctor Mauricio López Velázquez, Coordinator of Advisors, Ministry of Gobernacion.

BORDER SECURITY Héctor Mauricio López Velázquez spoke on behalf of Secretary Miguel Angel Osorio Chong, Ministry of Gobernación. López Velázquez is Coordinador de Asesores (Coordinator of Advisors) and a key liaison between the secretary and the various undersecretariats on the important projects and activities in the Ministry. He discussed the collaborative efforts between federal, state and municipal authorities to diminish violence in conflict areas and to regain the confidence of Mexican society on security institutions. He also commented on a U.S.-Mexico Cross Border Security Communications Network agreement signed by former U.S. Secretary of Homeland Security Janet Napolitano, and Secretary Osorio Chong in July 2013, which establishes the framework to increase cooperation and intelligence sharing between the two countries.

Stuart Dye, Al Zapanta, Rossana Gallástegui, Awardee Eduardo Gallástegui Armella, Ambassador Anthony Wayne and Javier Lozano.

pharmaceutical industry in Mexico. In his own words, Arriola Peñalosa described COFEPRIS as the “Mexican FDA.” He detailed the functions and influence of this important Mexican agency and the ways it communicates with the corresponding agency in the United States. The private sector award was presented to Eduardo Gallástegui Armella, Partner, Gallastegui & Lozano, S.C., for his leadership as legal advisor to numerous private companies, and for his contributions to generating investment and business agreements between U.S. and Mexican companies. He founded the law firm 28 years ago, which, as he stated “through long hours and hard work,” has become one of the prominent firms in Mexico City. He also noted that a key to the firm’s success has been their commitment to always doing the right thing for the client.

SECRETARY FOREIGN AFFAIRS The breakfast keynote address on Wednesday, the final day of the conference, was given by Dr. José Antonio Meade Kuribreña, Secretary of Mexico’s Ministry of Foreign Affairs. He reported on the pertinent issues being faced by the country, including the many reforms, some of which, e.g. education, have already been approved. Others, like energy and the financial reform, are yet to be approved by Congress. In this connection, he commented that much work remains in drilling down to the detailed and “low level” laws that are part and parcel of the actual reforms. Nevertheless, he expressed his confidence that Mexico will succeed and move forward with what is necessary and what will be good for the country.




U.S. Ambassador to Mexico, Hon. Anthony Wayne, joined Albert Zapanta, USMCOC President & CEO, on the stage to present the 2013 Binational Meeting Buen Vecino Awards. The public sector award was presented to Commissioner Mikel Arriola Peñalosa of Mexico’s Federal Commission for Protection from Sanitary Risks (COFEPRIS), for modernizing COFEPRIS procedures that facilitated the importation of supplies, and opening investment and business opportunities for the Mikel Arriola Peñalosa receiving the “Buen Vecino” Award from USMCOC President & CEO, Albert Zapanta.

Dr. José Antonio Meade Kuribreña, Secretary of Mexico’s Ministry of Foreign Affairs.





FONATUR: Mexico’s National Trust Fund for Tourism Development THE COVER / ARTÍCULO DE PORTADA




exico’s National Trust Fund for Tourism Development (FONATUR) has almost 40 years of experience in the Mexican tourism industry. A testimony to this expertise is the development of Integrally Planned Resorts (IPRs) in Cancún, Ixtapa, Los Cabos, Loreto, Huatulco, Litibú and Marina Cozumel. FONATUR constantly strives to create new tourist destinations while providing the best option for private investment. The vision has allowed this federal agency to maximize the benefits produced by the positive impact brought by the attraction of these economic engines. FONATUR destinations ensure sustainable developments that have helped transform Mexico into a global tourist destination by promoting investment throughout the country.



Ixtapa Ixtapa, located in the state of Guerrero, was the second Integrally Planned Center (IPC) developed by FONATUR. Its proximity to Mexico City and its booming housing, condominium and timeshare markets, have relieved some of the seasonal demand for Acapulco, making it a perfect getaway for the family in all seasons. Highlights ・ More than 16 miles of beaches ・ World famous destination for sport fishing ・ Best biodiversity in the near reefs ・ More than 30 places to practice diving ・ 18-hole, 6,900 yard golf course ・ Semi-humid climate Available Projects ・ Contramar family lots from 10,793 sf ・ Golf club family lots 4,736 sf ・ Cantiles Contramar multifamily lots from 41,979 sf


Los Cabos


Los Cabos, located in the state of South Baja California, is the third IPC from FONATUR. It is a tourist development that spans San José del Cabo and Cabo San Lucas which are connected by a breathtaking 20-mile corridor with some of the most magnificent sights in south Baja Californía. Highlights ・ Colonial town ・ Approximately 50 miles of beaches ・ Semi-humid climate Available Projects ・ Rancho Misiones and Lomas del Desierto family lots from 860 sf

FONATUR has a great success story to tell with its first IPC, Cancun, located in the state of Quintana Roo. Cancun is now one of the key tourist destinations in Latin America, with guests from all over the world. As a preeminent planning organization, FONATUR envisioned Cancun’s future by developing Tajamar, the city’s new mixed commercial, residential and corporate development. Tajamar is destined to become an urban tourist center with first class housing, services and trade facilities. ・ Located northeast of the Yucatan Peninsula, in the state of Quintana Roo ・ 800 miles from Mexico City (1:20 hours by air)

・ 13.5 miles of coastline ・ Hotel strip covers the entire eastern side of town ・ Nine public beaches with soft sand ・ 80° F (25.5° C) average annual temperature with warm sub-humid climate and rain all year long ・ Gateway to the Mexican Caribbean ・ Average occupancy rate of 58 percent—the highest when compared with all other beach destinations in Mexico ・ Primary foreign tourist reception destination (57.7 percent) ・ Strong domestic and international air, land and sea connectivity ・ Cancun International Airport is the second largest airport in Mexico; more than 70 percent of its inbound flights come from abroad

Highlights ・ The main beach destination in Mexico, recognized worldwide ・ 28,844 rooms in hotels and residential resorts ・ Plans to create new housing developments such as Tajamar Cancún (an urban-tourist center) with capacity for: ・ - Housing ・ - Furnishing ・ - Services ・・ Featured attractions include: ・- Nichupté Lagoon ・- Commercial zone on the city’s main avenue ・- Bike routes Available Projects ・ Tajamar, Cancun. Mixed/ commercial lots from 73,194 sf




Marinas Located in some of the best areas in the Mexican shores, FONATUR Marinas (MF) harbors thousands of recreational vehicles and their crews. FONATUR offers the highest port service standards and amenities in all of its marinas. Location ・ MF La Paz, B.C.S ・ MF Mazatlán, Sin. ・ MF Puerto Escondido, B.C.S. ・ MF Puerto Peñasco, Son. ・ MF Santa Rosalía, B.C.S. ・ MF San Felipe, B.C. ・ MF Guaymas, Son. ・ MF San Blas, Nay. ・ MF Chahué, Oax. Services & Amenities ・ Water ・ Electricity ・ Ramps ・ Towing ・ Trash removal ・ Pier for tourists ・ Weather reports ・ Tourist information center ・ VHF radio communication ・ Washrooms and lockers ・ Internet ・ Laundry ・ Infirmary ・ Restaurant and bar ・ 24-hour surveilance ・ Warehousing

PAYMENT PLANS FONATUR offers several payment plans for all of the land investment options available in these IPCs: ・ 30% down payment in one year with no interest, financing for up to eight years.

・ 10% down payment in one single payment, with financing for up to eight years. ・ Full payment in 12 months, interest free. ・ 5% discount on cash payment. Annual interest rate is based on TIIE + 2 pp (Mexico’s Interbank Equilibrium Interest Rate).

For more information about any of our lots or any further questions, contact us at the following telephone numbers: Phone: +52 (55) 5090-4249 Toll-free number for use within Mexico: 01 (800) 800-1020 Toll-free from U.S.A.: 1 877 847 8183


Or visit our Web Site at www.fonatur.gob. mx.


You can be certain that FONATUR is providing the best investment opportunity for you in some of the key global tourist destinations available anywhere in the world. We hope that you will be proud of your investment as a partner in growing the tourist history in México.


stated that there are 50 cities in Mexico that are growing at a rate that will require a doubling of the infrastructure in the next 20 years as only 20 percent of those cities have adequate infrastructure. The infrastructure cited includes sewer, electricity and roads. He said the lack of liquidity has created an opportunity and that he is focusing on providing liquidity to reputable developers who have demonstrated a solid track record to finish projects in the 10 to 20 most important cities.


VI Mexico Real Estate Investment Forum.

SEPTEMBER: VI Mexico Real Estate Investment Forum On September 6, Shearman & Sterling, LLP, hosted the Sixth Mexico Real Estate Investment Forum, a three-panel discussion among distinguished industry leaders about Mexico’s manufacturing status and where it’s headed. Panelists included Leonardo Arana de La Garza, Deputy Director General at Bancomext; Alberto Chretin, Chairman and CEO Terrafina Fibra; David O’Donnell, President, Grupo O’Donnell Mexico and Malcolm Montgomery, Partner, Shearman & Sterling. Jones Lang LaSalle and Aeromexico were cosponsors. Panel I: Industrial Real Estate: Mexico’s Manufacturing Comeback and the Thriving Auto And Aeronautic Sectors This panel addressed two main industries in Mexico: automotive and aeronautical. It was stated that Bancomext supports both industries and their relevance to strengthening Mexican commerce and bringing value to the community. They will continue to provide financing to FIBRAs, specifically to assist those that need time to grow. The challenges people face as developers in Mexico are similar to development in many of the southern areas of the United States, but they find


proactive governments that know how to engage and cooperate as part of a bigger political picture.

Gonzalo Espejel, Director, Anida BBVA, observed that there are signs the market is changing; cities used to grow in all directions but now the model is vertical urban growth. People have moved from Infonavit 2 housing to mid-sized homes and loans are available at single-digit rates. The market will be moving fast and the model that used to focus on lower-priced homes is now moving to a model of more valuable products. OCTOBER

Panel II: Tourism Real Estate Pedro Azcue, President, Jones Lang LaSalle Latin America, stated the Compound Annual Growth Rate Calculator (CAGR) in total rooms for the period 2007-2012 was as follows: Riviera Maya - 8.4 percent, Los Cabos 6.9 percent, Acapulco - 1.9 percent and Ixtapa - 4 percent. The overall growth in the sector was driven by the Cancun/Riviera Maya and Los Cabos destinations. Air traffic in Cancun and Los Cabos airport is above pre-crisis levels. He sees cap rates ranging from 5-6 percent up to 12-13 percent and mentioned that hotels are experiencing liquidity and overall interest is high in Mexico. Azcue also mentioned that the hotel industry was the most affected from the crisis and still presents more opportunities to acquire distressed real estate. CKD’s and foreign funds are pouring into the sector. He believes there is opportunity for long term investment in “new” communities (tourism) also because the weather is a competitive advantage.

Seminar on the Foreign Account Tax Compliance Act (FATCA) Hunton & Williams, LLP, hosted our event on October 8, in conjunction with the Spain-U.S. Chamber of Commerce. The panel was comprised by Carles Farre, KPMG; Lev Shoykhet, Managing Director Citco; and Cary Tolley, Partner, Hunton & Williams.

Panel III: Residential Real Estate: Sustainability as a Key Driver for Mexico’s Urban Development Gregorio Schneider, CIO of Terranum,

On October 15, the Chamber hosted an intimate reception at the offices of Duane Morris, LLP, to extend a warm and cordial welcome to Ambassador Sandra Fuentes-

Speakers described how the Foreign Account Tax Compliance Act (FATCA) would affect investors and what could be done to comply with the new law including milestones and recent regulatory developments. Industry leaders also presented practical ways to overcome compliance challenges for LatAm fund management banks and alternative solutions in order to comply with FATCA. The legal and tax aspects of the new law were also be discussed as well as how it’s affecting market participants in the industry. Reception for Ambassador Sandra Fuentes-Berain, General Consul of Mexico in New York

quarter of 2012 combined with weak private investments. Declining public works and decreasing trends in private housing construction.

Berain in her new position as General Consul of Mexico to New York. Her presence demonstrates our shared common interest: the promotion of business and investment between both nations. The opportunity to work with her and her team in order to strengthen Mexico’s presence in the financial and commercial fields is an ambitious goal that should be approached as partners. Mexico’s Legal and Business Forum (Philadelphia) Gerardo Patiño, Regional Director of Promexico, shared his insights on Mexico and the excellent job it has done to position itself globally and strengthen its economy. It has more trade agreements than any other country in the world and its geographic location is a huge advantage resulting in the maquiladora industry in Mexico exporting 74 percent of products to the United States and importing 53 percent. He also shared that the automotive and aerospace industries have grown exponentially making tremendous strides going from what began as merely assembling products in Mexico using components produced in other countries to now manufacturing those components in Mexico. Panel I: Mexico’s Business and Regulatory Framework The panel for this discussion was comprised of Eduardo Ramos-Gómez, partner, Duane Morris, LLP, and president of the U.S.-Mexico Chamber of Commerce Northeast Chapter; Rosa M. Ertze, associate, Duane Morris, LLP; Alejandro Staines, partner, Miranda & Estavillo, SC; and Andrea De Leon, tax specialist, PricewaterhouseCoopers, LLC. Mexico’s proximity to the United States has enabled Mexico to establish itself as the 11th strongest economy in the world. As the country grows, the influx of businesses opening and expanding in the industrial sector is extraordinary.The panelists laid out the proper steps to follow in order to ensure the legal framework of a business is well established and complies with labor laws and taxes. Panel II: Manufacturing in Mexico Participants of this panel were Alan Russell, president, Tecma; and Frank Rainero, president, Magnetic Metals

Mexico’s Monetary Policy & Economic Outlook: A presentation and conversation with Manuel Sánchez, Vice Governor of Mexico’s Central Bank (Banco de México).

Corporation. In response to the question, “Why Mexico?”, Russell compared Mexico and China. He cited several factors: wages and transportation costs are going up, transportation is getting slower, the Yuan-U.S. dollar exchange rate is not advantageous while the Peso-U.S. dollar exchange rate is, and the minimum wage in Mexico is also more advantageous for companies. Russell also pointed out that the workforce in Mexico is very educated and its people are a great resource for companies. Mexico’s Monetary Policy & Economic Outlook: A Presentation by Manuel Sánchez Thomson Reuters hosted our October 18 event at their Times Square location in New York City. Manuel Sánchez, Vice Governor of Mexico’s Central Bank (Banco de México), gave a very informative talk about Mexico’s financial position in the world and in emerging markets, as well as its economic outlook. Sánchez spoke about the recent decrease in gross domestic product (GDP) and pointed out that it coincided with sell and buy side. He explained that the origin of the slowdown could be traced back to two negative shocks that began at roughly the same time. First, the softening of external demand during the second half of 2012, and a decrease in manufacturing and production. (He did note that exports have been gradually increasing in recent years, improving the impact sustained during 2012.) Second, which occurred at roughly the same time, was domestic and more enduring: a continuous contraction of public investments since the third

The two shocks eventually affected consumption, the largest component of GDP. The second shock was preceded by, and concurrent with, lower consumer function. Total and formal employment had negative effects from those original affecting shocks. Available data suggests economic growth may have started picking up during the third quarter. Sánchez also mentioned that housing has been on a weakening path since 2008. Improvement of the industry will likely take time. On the other hand, the U.S. economy has continued to show signs of strength. The prominent concerns are that unless there is an upsurge in the sector, it’s difficult to think of a solid recovery. There is no indication that improvement in construction is forthcoming although public construction/government side may bounce back with budgeted outlets. The impact of international financial conditions is that Mexico’s financial markets have been affected by whatever happens on the monetary side of the largest economies including the U.S. Federal Reserve. Extraordinary monetary decisions taken by central banks are important factors behind the substantial portfolio capital influx that was received in the largest emerging markets including Mexico. Financial capital bonanzas have capital risk that arose, especially in the form of the possibility of having macroeconomic imbalances or financial pricing bubbles. Building Business Partnerships Between New England and Mexico Duane Morris, LLP, in Boston, hosted our event on October 21. Forty representatives of the New England region joined Chamber members and expressed their interest in becoming partners with Mexico. The Chapter is actively looking to grow and expand within New England and this networking mixer was a fantastic way to introduce our Chapter to the area and help establish and grow our already existing relationships. MARIANNA ROSSELL



about 40 Hong Kong companies. While in Hong Kong, the delegation had the opportunity to visit the Hutchinson Port and the Cathay Pacific Cargo Terminal. • The companies included in the mission represented industries such as beer manufacturing, peanuts and Mexican snacks, legal services, maquiladora industries, transportation companies for tourism and merchandise, produce exporter from Mexico. During the trip, each delegate had individual meetings where they were able to present their products. This is a unique opportunity for U.S. and Mexican companies to promote their industries and services and explore successful venues.

Delegates attending the mission from Los Angeles, Tijuana and Mexico City: Esthela Reyes de Marroquin, Patricio Orozco, Marcela Espinoza, Jaime Gonzalez-Luna, Nuria Marroquin, Marlen Marroquin, Mauricio Lozano, Michelle Mercado, Jose Guzman, Jose Antonio Gonzalez, Xavier Rivas and Manolo Pasero (bottom).


he California Regional Chapter coordinated its Second Annual Golden Triangle trade mission to China from October 11 through 23. This year’s contingent was comprised of 16 delegates from Mexico and the United States. During the trip, the Chapter conducted six seminars on topics related to the theme, Mexico’s Business Opportunities and How Can China Benefit and Participate.


• The first seminar was held at the offices of Sheppard Mullin in Beijing. The opening breakfast was blessed by the Mexican Ambassador in China, the Honorable Julian Ventura. • The second seminar was organized by HSBC in Shanghai attended by more than 50 participants. While in Shanghai, the Chapter signed a Memorandum of Understanding and Cooperation with the Shanghai Chamber of Commerce for exports and imports, providing members from both organizations opportunities to explore business opportunities. • The third seminar was held in the city of Hangzhou with the support of

ProMéxico, an entity dedicated to the promotion of international businesses in Mexico, and CWCC (Latin Desk Public Accountants, with a Latin American Business Advisory desk unique in this market).

The Honorable Julian Ventura, Ambassador of Mexico in China; Mauricio Monroy, Chairman, USMCOC California Regional Chapter; Marlen Marroquin, Executive Regional Director; Jose Antonio Gonzalez, CEO, Cerveceria Tijuana; Jaime Gonzalez Luna, CEO, Bucher Industries and USMCOC Board Member; Marcela Espinoza; Patricio Orozco, and Attorney and V.P., Tijuana-San Diego Programs; and Jose Garcia Torres, President, Mexico City Chapter.

• The fourth seminar, held at the Consulate of Mexico in Guangzhou, followed a morning of sightseeing at the Canton Fair. • The delegates then travelled to Bankok where they were hosted by the Thai Chamber of Commerce. The afternoon featured another seminar entitled, “Mexico’s Opportunities and How Can Thailand Participate and Benefit”. The Thai Chamber invited the Chapter’s delegation to return in 2014 to sign an agreement of collaboration to bring business opportunities to both chambers’ members. • The final seminar was organized in Hong Kong at the American Chamber of Commerce, in collaboration with CWCC, The Consulate of Mexico in Hong Kong and MexCham. It was attended by representatives from

Marlen Marroquin, Executive Regional Director California Chapter; Rodrigo Contreras, Trade Commissioner PROMEXICO Shanghai Office; Mauricio Monroy, Chairman USMCOC; Manuel Pasero, Pasero Abogados Tijuana.

Seminar in Hangzhou and Chinese companies participating.



id-America Chapter of the U.S. Mexico Chamber of Commerce held its Annual Double Eagle Awards Dinner on September 5 at the historic Drake Hotel in Chicago. The high-level corporate event highlights the spirit and importance of the U.S.-Mexico relationship as business partners. Each year the Chamber honors a company or group of companies, and a public official of the Mexican government, for their efforts in strengthening the relationships and ties between the two countries. Past




Motorola Solutions, Ingredion, Baker & McKenzie, Evans Foods, McDonald’s, Kraft Foods and United. On the public side, the list of honorees includes Secretary of Economy Bruno Ferrari, Ambassador of Mexico to the U.S. Arturo Sarukhan, Secretary of Agriculture Franciso Mayorga. Also honored in the past are Mexican Presidents Felipe Calderón, Ernesto Zedillo and Vicente Fox. This year’s awardees were Caterpillar Inc. and Mexico’s Secretary of Communications and Transportation, Gerardo Ruiz Esparza.

Haydn Powell, Global Procurement Supply Chain Caterpillar Receiving the award from Gery Chico, President of the USMCOC Mid-America Chapter.

The Chamber is proud to recognize Caterpillar’s longtime presence and commitment in Mexico. Haydn Powell, manager of the global supply chain, talked about the importance of Mexico as a strategic partner to service the North and South America regions. He presented the company’s vision and expansion plans for Mexico. Secretary Ruiz Esparza recently announced Mexico’s five-year infrastructure plan. During his dinner remarks, he talked about the plan and the opportunities they present for companies—especially those from the Midwest. Sponsoring the event were major transportation and shipping companies including KCS de Mexico, CSX, DHL, UP, CH Robinson, as well as other chamber members: Motorola Solutions, Ingredion, McDonald’s, Mayer Brown, Baker & McKenzie, Chico Nunes, United, Aeromexico, Plante Moran, Promexico, Mexico Tourism Board and Roche Industries.

Gerardo Ruiz Esparza, Secretary of Communications and transportation of Mexico and Gery Chico, President of the USMCOC Mid-America Chapter.


Mid-America Chapter. Chicago, IL



Seattle Deputy Mayor Darryl Smith addressed his remarks on behalf of the City of Seattle. Phyllis GutiĂŠrrez, former Representative of the State Washington, and Mike Sotelo, president of the King County Chamber of Commerce, also greeted the honored guest with words of welcome. When Consul Baca-Cuenca spoke, he thanked the Chamber, elected officials and guests for the hospitality and commented on the importance of the trade relationship between Mexico and the State of Washington. ENTREPRENEURSHIP AND INNOVATION On September 26, the Chapter organized a business breakfast featuring Alex Samano, Co-Founder and CEO at Life Dreams Inc., an online financial planning tool. The breakfast was chaired by Jorge Madrazo, president of the Northwest Chapter.

Jorge Madrazo, President of the Northwest Chapter of the USMCOC.


n July 25, the U.S.-Mexico Chamber of Commerce Northwest Chapter hosted a breakfast to welcome the Consul of Mexico, Eduardo Baca-Cuenca, to Seattle, Washington. Jorge Madrazo, president of the Chapter, gave the official


Alex Samano, Co-Founder and CEO at LifeDreams Inc.

welcome to Baca-Cuenca as Honorary President of the Chapter. The breakfast was attended by business leaders and members of the Latino community who represented government, financial, educational and non-profit sectors of the Pacific Northwest region.

The purpose of this business breakfast was to promote the Chamber and the NW Chapter. Samano talked about entrepreneurship and contributed his insights about business practices and how to survive in a very competitive environment. He described practices that can be central to developing new and better ways of understanding business and entrepreneurhsip. He also shared how to integrate personal and social values into business practices.

Jorge Madrazo, President of the Northwest Chapter of the USMCOC, introducing guests.

Southwest Chapter Dallas, TX LEARNING FROM A LEADER


n July 18, the U.S.-Mexico Chamber of Commerce, Southwest Chapter, had the pleasure of hosting the DFW Airport Connectivity Luncheon and presenting guest speaker Jeffrey Fegan, CEO of DFW International Airport, who spoke in the Dallas City Council Chambers. Prior to Fegan’s remarks, the crowd was addressed by Josie Orosco, executive director of the Chapter; Dallas Mayor Pro Tem Monica Alonso; and Dallas City Councilman Scott Griggs. Fegan, who heads the world’s fourth busiest airport, recounted the airport’s history and milestones during his 19 years of service. It was a challenging management task considering that there are 1,800 flights per day, serving 58 million passengers each year. During his administration, the airport doubled the number of international destinations to 50 and increased annual revenues. The airport underwent a dozen improvement projects including runway extensions; construction of the Grand Hyatt Hotel, a new rental car center, and Terminal D; and the introduction of the SkyLink peoplemover system. For five consecutive years, DFW Airport ranked among the top five airports worldwide for its great customer service.

Vice President, Business Diversity and Development at DFW Airport, and were entertained by the talented dancers of the Alma Y Corazon Tejano Ballet Folklorico.

Dallas Police Deptartment Color Guard and host Josie Orosco.

Afterwards, Orosco offered her praise of Fegan: “It has been a privilege and honor working and partnering with Jeff and his team on projects to increase flights from Mexico to DFW Airport.” Sincere thanks to the City of Dallas, Mario Ramirez of La Paloma Taquería and DFW Airport for sponsoring this luncheon.

Monica R. Alonzo, Dallas Mayor Pro Tem.

Left to right: Paul Hendershot, manager Business Development; John Brookby, AVP Commercial Development; Mary Jo Polidore, VP Public Affairs; Jeff Fegan; Josie Orosco; John Terrell, VP Commercial Development; Suzanne Cruz-Sewell, AVP Business Diversity & Development.

This was one of the last speeches Fegan presented as CEO before announcing his retirement in September. During the lunch that followed in the City of Dallas International Flag Room, participants heard comments by Irene del Corral, American Airlines Specialist for Diversity Strategies; Jenniffer Apperti, Mexican Consul for Economic and Cultural Affairs; and Suzanne Cruz-Sewell, Assistant

The Alma y Corazon Ballet Folklorico.

Jeffrey Fegan, CEO of DFW International Airport.





key Gold Sponsors included Memorial Hermann Hospital The Woodlands, Spirit of Texas Bank, Rico’s Mexican Restaurants, AeroMexico, United Airlines and the Mexico Tourism Board. Great volunteers such as Julie Charros-Betancor, Chrisleda Barrientes, Denise Garcia and Binh Bui, among others, made the day a great success. CHAPTER DIRECTOR MEETS WITH SENATOR GARCIA Pete Garcia, executive director of the Woodlands-Gulf Coast Chapter, attended an October 22 Montgomery County Hispanic Chamber of Commerce luncheon with Texas State Senator from Houston, Sylvia Garcia, presenting the keynote address.

Pete Garcia and Felipe Calderon, former President of Mexico.



he U.S.-Mexico Chamber of Commerce WoodlandsGulf Coast Chapter was a community sponsor of The World Affairs of Houston luncheon on September 19 with featured speaker, former President of Mexico Felipe Calderón. Julie Charros-Betancor, and Chapter Vice President and Pete Garcia, Chapter Executive Director, hosted a table for Advisory Council board members.


In a speech entitled “The Future of Mexico,” Calderón spoke of his six years at the helm of Mexico. During his tenure, many infrastructure improvement at airports, maritime ports, bridges and highways were initiated; in fact, the miles of highway construction and improvement projects are approximately equal to building a road from the North Pole to the South Pole.

has declined. • The country is in a better position in the global economy than it was when he took over.

Senator Garcia spoke about Texas and U.S. business and social issues and the importance of legislation to reform immigration laws. Director took the opportunity to speak to Senator Garcia about the Chamber’s mission and asked for her support in developing more business between Texas and Mexico.

SECOND ANNUAL GOLF CLASSIC On September 30, the Chapter held its second annual golf classic with over 75 players at the renowned Tour 18 Houston golf course. Current and future members were able to network and promote their brands and services to other members and non-members and, most importantly, spend leisure time with their best customers as their guests. Vector Global Wealth Management was the Title Underwriting Sponsor. Other

Pete Garcia with Texas State Senator Sylvia García.

Julie Charros-Betancort, Ronda Butler-Harkey, and Pete Garcia.

Title Sponsor Vector Global Wealth Management’s team.

Other subjects Calderón commented on were: • The many policy reforms are currently taking place or being seriously considered among legislators in the country. • The labor reform is already underway while the health, education and energy reforms that are moving forward. • The war on the drug cartels that began under his administration still continues. It has required many resources but the number of deaths



la distinguida presencia de Susan K. Abeyta, Cónsul General de los Estados Unidos de América en Guadalajara.

Pacífico Chapter Guadalajara, Jal.



l pasado lunes 8 de julio se llevó a cabo el “Networking Information de la Cámara de Comercio México–Estados

Unidos Capítulo Pacífico”, en las instalaciones de la misma. En el evento fue presentando el nuevo subdirector ejecutivo, Israel Castellanos, así como el Consejero de la USMCOC Pacific Chapter, Harold Hoekstra quienes desarrollaron el tema con el propósito de informar sobre el Programa de Valor Agregado que se ha implementado a los miembros actuales y futuros, así como dar promoción a los próximos eventos.

El pasado jueves 29 de agosto tuvo verificativo en el edificio de la Cámara Nacional de Comercio en Guadalajara (CANACO) el Foro titulado “La relación cultural y de amistad MéxicoEstados Unidos”.

El objetivo de ésta cámara binacional, es activar los enlaces comerciales y seguir impulsando el desarrollo económico, por lo que con estas reuniones, busca iniciar un camino que lleve a crear identificación no solo como colegas empresarios, sino también como representantes de lazos de amistad entre dos países vecinos.

La exposición fue sustentada por Frank Devlyn, ex presidente de Rotary Internacional, y sobresaliente empresario. También se contó con

Alrededor de ochenta personas asistieron y cada uno de ellos fue pieza clave para que se lograra el éxito conseguido.



Harold Hoekstra, Consejero de la USMCOC


Comenzando su tema a las 15:00 hrs., Frank Devlyn despertó el interés del público al representar sin duda alguna la amistad existente entre los países que conforman la US-Mexico Chamber of Commerce Chapter Pacifico, es decir, México y Estados Unidos, y al propiciar la participación de los asistentes, involucrándolos de tal modo que creó un ambiente en el cual tanto representantes estadounidenses como mexicanos, estrecharon relaciones de amistad, sentando las bases para erradicar barreras ideológicas, culturales y sociales, y avanzar hacia el progreso de ambos países.

Los asistentes a la exposición intercambiaron puntos de vista sobre el tema abordado.

Francisco Plancarte, Presidente de la US-Mexico Chamber of Commerce Chapter Pacifico, entrega un reconocimiento al Frank Devlyn por su excelente paticipación como orador en el evento.

Frank Devlyn, Presidente anterior de Rotary Internacional, y Susan K. Abeyta, Cónsul General de los Estados Unidos en Guadalajara.

Xavier Orendain Martínez Gallardo, recibe un reconocimiento por su magnífica labor como Presidente Fundador de la US-Mexico Chamber of Commerce Chapter Pacifico.

Guanajuato Chapter. Leon, Gto.

fueron Francisco de Rosenzweig Mendialdua, Subsecretario de comercio exterior de la Secretaria de Economía; Carlos Fuentes Arriaga, Director ejecutivo de PROMEXICO; Alejandro Velasco, Director general de COFOCE; Guillermo Romero Pacheco, Subsecretario de PyMES del SDES Guanajuato; Arturo Rangel, Presidente de la Comisión de Comercio Exterior de CANACINTRA; Albert Zapanta, Presidente y CEO de la USMCOC; y Joseph Chapa, su Vicepresidente. LA RESPONSABILIDAD SOCIAL LLEGA A GUANAJUATO

Durante el evento Guanajuato a 20 años del TLCAN.

Alejandro Velasco, Arturo Rangel y Albert Zapanta, ponentes del foro.


valiosos conocimientos para lograrlo.


on el objetivo de brindar a sus afiliados y empresarios de la localidad información actual e innovadora sobre un mejor desarrollo corporativo que a su vez sea justo, equitativo y cuidadoso del medio ambiente, el Capítulo Guanajuato ha desarrollado durante los tres primeros trimestres del año diversos cursos.

GUANAJUATO A 20 AÑOS DEL TLCAN El 27 de junio se realizó para toda la comunidad exportadora del estado de Guanajuato el foro denominado “Guanajuato a 20 años del Tratado de Libre Comercio de América del Norte”.

a) El arte de negociar b) Administración efectiva del tiempo c) Administración con eficacia, la visión de Peter Drucker d) Eficiencia energética y producción más limpia e) Cuadro de mando integral

Este foro fue organizado por la USMCOC Capítulo Guanajuato y la Coordinadora de Fomento al Comercio Exterior (COFOCE). El propósito de esta actividad fue brindar a los asistentes un análisis de resultados y una visión a futuro de México y el TLCAN. En él, se tocaron temas como estrategias para fomentar el comercio, instrumentos de competitividad empresarial y el TLCAN y su impacto regional.

Sin duda, estas proporcionado a

Algunos de los ponentes y especialistas que pudieron compartir sus experiencias

Algunos temas abordados son:

herramientas han sus participantes

Durante tres horas los asistentes al evento pudieron conocer cómo implementar una estrategia de desarrollo empresarial cuidadosa del medio ambiente y de los aspectos humanos y sociales de los colaboradores dentro de las empresas. La innovación en esta estrategia de negocios consiste precisamente en involucrar a los accionistas, colaboradores, clientes, proveedores, comunidad y gobierno bajo un esquema de responsabilidades compartidas en donde el ganar-ganar se convierte en una realidad y en una forma de vida justa y equitativa.

Gwenaelle Gerard exponiendo el tema de “RSE, vector de competitividad y creación de valor”.


Impartición de cursos por Antonio Vargas, Vicepresidente USMCOC Guanajuato Chapter.

El 31 de julio el Centro de Producción más Limpia del Bajío organizó el desayuno conferencia “Sustentabilidad y Responsabilidad Social Empresarial, estrategias para el crecimiento”, que contó con la participación de Gwenaelle Gerard, experta en el tema y Directora General de ResponSable (agencia de responsabilidad social), así como de Antonio Vargas y Sergio Ponce, Vicepresidente y Director Ejecutivo USMCOC Capítulo Guanajuato.


Valle de México Chapter. México City PROGRAMA NACIONAL DE CAPACITACIÓN EN NEGOCIOS INTERNACIONALES comercial, fue hasta el año 2005 en que entró en vigor el primer acuerdo de libre comercio; por eso la importancia de concluir exitosamente el TPP.

José Andrés García, Francisco de Rosenzweig, Subsecretario de Comercio Exterior de la Secretaría de Economía, José García Torres, Presidente del Capítulo Valle de México, y Antonio Cuellar Steffan, Diputado.



l pasado martes 13 de agosto, se realizó el desayunoconferencia “Tratados comerciales internacionales, diversificando los rumbos del comercio exterior”, organizado por la Cámara de Comercio México-Estados Unidos, actividad en la que participó Francisco de Rosenzweig, Subsecretario de Comercio Exterior de la Secretaria de Economía.


Durante la década del 2000, México tuvo importantes negociaciones con América Latina —como es el caso del Mercosur— así como con Asia, quien a pesar de ser el continente más dinámico en materia

En términos de inversión extranjera, el Subsecretario de Rosenzweig, señaló que México va a ser cada vez más competitivo. “Latinoamérica está llamada a hacer ciertas cosas que si se hacen bien en su conjunto, la región tendrá el mayor crecimiento en los siguientes diez años, esto hace que las expectativas de EE.UU. se vuelvan más eficientes en términos de atraer más inversión y regresar toda la manufactura que se fue a China o Asia.” Actualmente, existen 430 grandes empresas mexicanas que venden al extranjero, 2,549 medianas, 7,951 pequeñas y 24,050 micronegocios. A pesar de que hoy en día son 50 empresas las que concentran el 45% del comercio internacional, se espera que para los próximos 18 meses este número ascienda a 700, según la meta establecida por ProMéxico. POLÍTICAS DE APOYO A EMPRENDEDORES, MICROS, PEQUEÑAS Y MEDIANAS EMPRESAS El pasado martes 25 de junio se llevó a cabo el desayuno temático de la USMCOC con el tema Políticas de apoyo

Enrique Jacob Rocha Presidente del Instituto Nacional del Emprendedor (INADEM) presidió el desayuno temático de la USMCOC del mes de junio.

a emprendedores, micros, pequeñas y medianas empresas, presentado por Enrique Jacob Rocha, Presidente del Instituto Nacional del Emprendedor (INADEM). En dicha ocasión se habló sobre las medidas consideradas para brindar el apoyo necesario a los emprendedores, así como los incentivos que se están generando para aquellos proyectos que apoyen y promuevan la sustentabilidad y la responsabilidad social. “El equipo que conforma al INADEM, no sólo impulsa el emprendimiento tradicional y estratégico para los negocios, sino también emprendimientos innovadores, sociales y ambientales”, señaló Enriq ue Jacob. El Presidente del INADEM informó que ha puesto en la agenda de trabajo del Instituto, el tema de la sustentabilidad y la responsabilidad social; asuntos que esperan ser atendidos a través de la creación de fondos de capital emprendedor para proyectos en etapa temprana para que, de esta manera, reciban la guía adecuada desde su inicio. Consciente de que la innovación es imprescindible para el desarrollo de un país, actualmente el INADEM cuenta con un Fondo para la Innovación Tecnológica, a través del cual se pretende proporcionar un apoyo directo a los emprendedores para que sus proyectos tengan un mayor campo de acción. A pesar de que el INADEM es un instituto de reciente creación, Enrique Jacob Rocha afirmó que, “Sin duda, está habiendo una revolución innovadora. Estamos ubicando dónde se encuentran los principales puntos a trabajar para impulsar su desarrollo y hacer de México un país con proyección hacia el futuro”, concluyó.

Más de 40 empresarios de micros, pequeñas y medianas empresas asistieron al desayuno..



Golfo Chapter. Veracruz, Ver.

CUMBRE DE INFRAESTRUCTURA Y FINANZAS SUB-NACIONALES EN MÉXICO DE LATINFINANCE Llegando a su sexto año de historia, la Cumbre de Infraestructura y Finanzas Sub-Nacionales en México, organizada por LatinFinance y el Estado de Veracruz, fue celebrada los días 26 y 27 de septiembre del presente año en Boca del Río. La USMCOC estuvo presente para coordinar los esfuerzos con la prestigiosa revista financiera LatinFinance, representada en el evento por Michael Brosgart, su director ejecutivo,


Esta cita, que cada edición atrae a más


el ejercicio de los recursos públicos”, dijo en el discurso inaugural, el gobernador del estado de Veracruz de Ignacio de la Llave, Javier Duarte de Ochoa.

de 300 participantes, informa a los asistentes sobre oportunidades de inversión en el sector de infraestructura y explica las opciones de financiación a través de discusiones, presentaciones y encuentros individuales; funcionarios del sector público, entidades financieras, patrocinadores, inversores, concesionarios y operadores, participan realizando un análisis prospectivo del segmento, que muestra una rápida evolución.

Alfredo del Mazo Maza, director general del Banco Nacional de Obras y Servicios (Banobras), destacó por su parte que los gobiernos no pueden advertir el impacto de fenómenos naturales, pero sí prevenir para evitar daños económicos y sociales, como lo ha hecho Veracruz mediante políticas públicas eficientes, reconociendo que dicha entidad, es un claro ejemplo de cómo se deben enfrentar los embates del clima que han afectado en las últimas semanas a varios estados de la República

“En Veracruz privilegiamos el desarrollo de infraestructura inteligente porque es una de las mejores políticas públicas que un gobierno local se pueda proponer como medida eficaz para optimizar

El encuentro, que contó con un gran cuórum de expertos en la materia, abrió un vínculo entre empresarios y organismos y gobierno, encaminado a un entendimiento del concepto PPS.

Provenientes de ciudades de México y Latinoamérica, altos ejecutivos de la banca, empresas calificadoras, y financieras, asistieron a la Cumbre que registró un elevado aforo durante los dos días de intensas pláticas.

En el banderazo de salida Michel Brosgat da sus palabras de bienvenida. Medios de comunicación nacional e internacional estuvieron presentes.

Javier Duarte, Gobernador de Veracruz.

Alfredo del Mazo Maza, Director General de Banobras.

Michoacan Chapter. Morelia, Mich.

difundir la proveeduría que existe en el estado para el sector exportador, y brindar asesoría a los empresarios en sus proyectos enfocados al comercio exterior. La inauguración, estuvo a cargo del gobernador interino, Jesús Reyna García y de su gabinete de la Secretaría de Desarrollo económico. El Secretario de Desarrollo Económico, Juan Pablo Arriaga Diez, donó un stand a la USMCOC Michoacán Chapter, y pidió el apoyo en la promoción de la oferta exportadora del estado, principalmente de frutas y legumbres. 

PUNTO DE ENCUENTRO Fue celebrado el evento “Punto de encuentro”, del 2 al 3 de octubre en

el centro de convenciones de Morelia, Mich., con el objeto de generar un primer contacto entre compradores internacionales y Pymes exportadoras,

Jesús Reyna García, Gobernador Interino del estado y Juan Pablo Arriaga Diez, Secretario de Desarrollo Económico, estuvieron a cargo del corte del listón inaugural.

Otros artículos que les distinguen son los muebles, las artesanías, guitarras, y algo que está teniendo mucho éxito, el mezcal michoacano.

El mezcal, la nueva joya con calidad de exportación.

Los productos del campo michoacano son orgullo de México. Se exportan a Estados Unidos, Canadá, Centro y Sudamérica, Europa, y Asia.


El gobierno del estado a través de la Secretaría de Economía, otorga un decidido apoyo a las Pymes exportadoras.

Michoacán ocupa con seis productos agropecuarios, los primeros lugares de México y su tendencia exportadora es creciente. Los productos michoacanos son gran calidad, debido a las condiciones geográficas y climáticas de la región, y no solo se exportan a Estados Unidos y Canadá, sino también a Europa, Centro y Sudamérica, y Asia.


Mexico’s Telecommunications Reform Overview

By Eduardo Gallastegui Armella, Senior Partner at Gallastegui y Lozano S.C.


n June12, 2013 came into force the Decree amending and supplementing various provisions of Mexico’s Political Constitution which was published in the Federal Official Gazette on June 11, 2013 (the “Reform”).


The following article intends to be a useful tool in order for the business community to clearly understand (i) the highlights of the Reform, that is to say the most relevant changes in the applicable legal framework; (ii) all those actions announced by the Reform which have been already performed by the responsible parties and; (iii) the challenges that Mexican government would have to face in order to make from the Reform the instrument that intends to reactivate the economy and trigger a substantial growth under a fair competition atmosphere and; (iv) the business opportunities that the Reform may bring by contemplating concrete actions in the television/ radio broadcasting and telecommunications sectors that will attract the interest of foreign investors specially taking into consideration that former legal restrictions applicable to them have been materially liberalized through the Reform. I. REFORM HIGHLIGHTS. The Reform is directed, among other objectives, to the adoption of concrete measures to encourage competition in television, radio, telephony and data services.

In such connection, the following items contained within the Reform must be emphasized: ・ The Mexican State shall guarantee, as a fundamental right, the access to the information and communication technologies as well as to the telecommunications, television and radio services, including broad band and internet. Therefore, the Mexican state shall guarantee their practice under fair competition, plurality, universal coverage, interconnection, convergence, continuity and free access without arbitrary interferences. ・ The Mexican State shall have a new Federal Antitrust Commission (“COFECE”), an autonomous governmental agency with own legal existence and patrimony. The COFECE shall take whatever measures to guarantee the fair competition and prevent, investigate and combat, the monopolies. ・ Telecommunications and TV/Radio broadcasting concessions shall be granted by the new Mexican Federal Institute of Telecommunications (“IFETEL”). IFETEL will have the exclusive legal authority regarding anti-trust matters in connection with TV/Radio broadcasting and telecommunications services by exercising in such sectors all duties attributed to COFECE. Therefore, IFETEL shall perform the necessary duties in order to (i) eliminate any barriers to fair competition, (ii) impose caps to

・ Resolutions issued by COFECE and IFETEL may only be challenged through an “amparo” lawsuit filed before the Federal Courts and no injunction order may be issued in order to suspend their effectiveness. The resolutions issued by COFECE shall not be enforced until the relevant “amparo” trial is definitely resolved. ・ Each of COFECE and IFETEL shall be integrated by seven commissioners appointed gradually upon President’s proposal with the Senate’s approval. ・ Within a term of 180 calendar days as from the Reform’s effective date, the Mexican Federal Congress shall issue the required adjustments to the current regulatory framework in order for the same to be consistent with the Reform and shall issue one single legal statute ruling, under convergent basis, the use, taking advantage of and exploitation, of the radio-electrical spectrum, the telecommunications networks and the rendering of TV/Radio broadcasting and telecommunication services, provided that concessionaries shall be enforced to comply with their obligations and the applicable monetary considerations ・ IFETEL may categorize certain concessionaries as “preponderant” (having substantial power in the relevant market) which shall comply with the applicable requirements, terms and conditions established by IFETEL by virtue of such special condition within the 60 calendar days following the date on which such categorization is issued. ・ As from the Reform’s effective date the direct foreign investment up to 100% in telecommunications and communications via satellite shall be permitted. Likewise direct foreign investment up to 49% shall be permitted in TV/Radio broadcasting activities, in the understanding that this new limit shall be subject to a reciprocal treatment with the country in which the entity or economic agent controlling directly or indirectly the relevant foreign investor, is incorporated. ・ The terrestrial digital transition (“TDT”) shall conclude on December 31, 2015. Upon such

conclusion, the relevant concessionaires will be obligated to return the frequencies which were originally licensed to them. ・ Concessionaires of over-the air TV broadcasting services shall be obligated to permit the concessionaires of restricted television to re-transmit their entire signal at no cost and on non-discriminating basis within the same geographic coverage zone, including advertising, and with the same signal quality that is broadcasted, with no additional cost in the services contracted by the subscribers. Satellite restricted television concessionaires shall be obligated to only re-transmit the broadcasted signals covering 50% or more of the national territory. All the restricted television concessionaires must re-transmit the signals broadcasted by federal public institutions (must offer/must carry obligations). ・ The effectiveness of the above mentioned must offer/must carry obligations as well as obligations imposed to the “preponderant” entities shall cease upon the existence of fair competition conditions within the TV/Radio broadcasting and telecommunications markets, when such circumstance is declared by IFETEL in accordance with the applicable statutory provisions. ・ Within a term of 180 calendar days as from the date on which the IFETEL is duly integrated, such agency shall (i) issue the bases and calls to auction new frequency television broadcasting concessions, same which must be grouped in such a way to form at least two new television networks with nationwide services coverage, excluding the participation of those concessionaires and groups interrelated through links that accumulate concessions of 12 MHz or more of radio-electrical spectrum to render TV/Radio broadcasting services in any geographic coverage zone, (ii) determine the existence of “preponderant” entities in the TV/ Radio broadcasting and telecommunications sector and; (iii) impose the necessary measures to avoid any damage to the fair competition framework and consequently the relevant final users. ・ Within the 60 calendar days following the Reform’s effective date, the Federal Judicature Council shall establish Circuit and District Federal Courts focused on anti-trust, TV/Radio broadcasting and telecommunications matters. II. Reform’s actions already performed: 1. On September 10, 2013 COFECE and IFETEL were officially integrated once the candidates


national and regional frequencies accumulation, licensing and crossed-ownership, (iii) order the divestment of assets, rights or capital interests required in order to assure the fulfillment of the above mentioned caps, (iv) incorporate the Public Registry of Concessions, (v) determine the amount of the monetary considerations for the abovementioned concessions and; (vi) grant radio-electrical spectrum concessions through a public auction process.


proposed by the President of Mexico to be appointed as commissioners of those entities were officially approved by the Senate. 2. It must be noted that some of the elected commissioners of IFETEL have had a large experience dealing with antitrust matters whether in public or private practice. 3. On September 19, 2013 the Organic Statute of COFECE was published in the Federal Official Gazette, becoming effective on September 20, 2013.


4. On September 23, 2013 the Organic Statute of IFETEL was published in the Federal Official Gazette, 2013 becoming effective on September 24, 2013.


5. On August 7, 2013 Federal Judicature Council issued a resolution in order to transform (i) two current auxiliary federal district courts into two federal district courts on administrative matters and; (ii) two current auxiliary federal circuit courts into two federal circuit courts on administrative matters. Such courts shall be specialized in antitrust, TV/Radio broadcasting and telecommunications having their domicile located in the Federal District and with nation-wide authority. On September 18, 2012 the two federal district judges and the six magistrates integrating the two federal circuit courts (three each) were appointed by the Federal Judicature Council. Such judicial officers shall take position starting as from October 16, 2013. III.CHALLENGES The most important challenge derived from the Reform is directed to the Federal Congress which shall issue the required adjustment to the current regulatory framework and develop legislative activity in order to ensure the enforcement of the Reform, upon a deadline date not later than December 9, 2013. The real question in this connection would be to know the extent of the so-called secondary legislation, which shall be adjusted in compliance with the Reform. The Underminister of Telecommunications of the Mexican Ministry of Communications and Transportations has publicly stated that secondary legislation will be released on February, 2014 due to the overloading

of the legislative agenda for the current year (political and energy reforms).

originally licensed to the relevant concessionaires.

1. At first sight there are topics that can be highlighted towards the efforts carried out by the Mexican Congress to issue the secondary legislation, including among others the following:

4. In coordination with the President of Mexico, IFETEL shall guarantee the installation of a shared telecommunications public network which encourages the population effective access to broad band and telecommunication services in accordance with the objectives expressly contemplated in the Reform, as well as to create the public registry of concessions and its advisory council integrated by honorary members.

concessionaires’ right to extend the term of their concessions; specific rules to implement the criteria to determine the preponderancy of the relevant economic agent. Some measures in such connection have been already imposed by IFETEL;

IV. BUSINESS OPPORTUNITIES extent definition of access to active and passive infrastructure regarding TV/Radio broadcasting and telecommunication services, as well as the ruling of essential production factors; IFETEL’s authority to determine monetary considerations applicable to the granting of concessions and subsequent authorizations to provide additional services thereto. In this connection, the Representatives Chamber has already approved what could be considered as low monetary consideration for the use of spectrum in the 700 MHz and 2.5 GHz bands; provisions directed to state and municipal authorities in order for them to facilitate the infrastructure installation to provide telecommunication services; ruling and enforcement of the must offer/must carry provisions; design and implementation of rules directed to use cost models in order to resolve interconnection disagreements; defining the rules in order for IFETEL to establish the limits on cross-ownership controlling several communications media by TV/Radio broadcasting and telecommunication concessionaires servicing the same market or geographic coverage; 2. Issuance of the bases and calls to auction new concessions of over-theair television frequencies. 3. Continue conducting the terrestrial digital transition process by coordinating the return of frequencies

Taking into consideration the opening that the Reform entails on foreign investment, allowing it to reach 100% in the telecommunications sector and 49% in TV/Radio broadcasting subject to reciprocal treatment, it is possible to expect the immediate entrance of foreign capital to our country in those sectors, and mainly in those activities directed to increase and guarantee the access of the population to broad band, by observing that the greatest contribution of the Reform is the establishment of clear and precise rules that ensure the proper markets functionality in a fairness and free competition atmosphere which translates in major services with better quality and lower prices for the benefit of the population. The spectrum auctions to be carried out associated to the establishment of at least two television networks, as well as the evident interest shown in the Reform to encourage the population access to the broad band and telecommunication services in general shall trigger the interest of national and foreign investors to participate in such activities making possible their respective growth and development plans. Of course there are still important topics to be included in the agenda of the Mexican State on TV/Radio broadcasting and telecommunications matters that shall appear gradually at the time the challenges already identified are met and consequently shall continue to expand the range of business opportunities that will be waiting for the allocation of human, materials and financial resources.



Infrastructure plan By Secretariat of Communications and Transport

“As President of the country, I have the commitment to foster comprehensive infrastructure development, especially in the this sector, as I recognize the importance this has for Mexico to develop its true potential.” ~ Enrique Peña Nieto, President of Mexico “Improving our global competitiveness, and with it, increase Mexico’s potential for its development, is part of the purposes of this investment program.” ~ Gerardo Ruiz Esparza, Secretary of Communications and Transport


he Secretariat of Communications and Transportation  (SCT) of Mexico  is a federal entity that regulates commercial road traffic and broadcasting. The ministry’s mission statement reads “To give the country transport and communication systems that, by various means, make possible the union of all Mexicans and connect them with the rest of the world, taking advantage of technological innovation, promoting the creation of accumulation value and social and economic development, balanced and sustainable, with sincere respect to our unique cultures and the environment.”


The SCT promotes safe, efficient and competitive transportation and communications services by legal means, determines public policies, and designs strategies that allow sustainable growth of the Mexican economy and social development of the country. The SCT is in charge of highway infrastructure, transportation (road, aerial, maritime, train), communications, and has a national presence in Mexico City.1 The 2013-2018 National Program of Investment in infrastructure and communications is the road map to achieve a well-connected country with economic dynamism, sustainable development, 1




and a better quality of life for its citizens so that Mexico can maximize its potential and prosper. The SCT has proposed more than one hundred projects for the NIP. The list of projects supports achievement of the five goals of the national development.

1. A Mexico of peace must… Have safer transportation through the implementation of a video surveillance system, radar and intelligent transport systems (ITS) that reduce illegal activities and accidents, as well as provide the national security platform for secure communications. A well-connected country is a safe country.

2. An inclusive Mexico that communicates… By implementing strategic projects for rural areas. It must include disabled citizens in the SCT’s employment program and provide temporary employment for the young and elderly. It must also ensure infrastructure maximizes accessibility and more social coverage with programs of digital inclusion.

3. A Mexico with quality education that provides…


Broadband communication platforms for public schools and technologies for tele-education programs. It must create a new training program that supplies people in the region with necessary labor skills and certify the quality of the most relevant processes under the main areas of the sector. Good communications capabilities facilitate quality education.


4. A prosperous Mexico that improves… Productivity and national competitiveness through strategic infrastructure development. A prosperous country must be well connected.

5. A Mexico with global responsibility that converts… Mexico to a hub for cargo and passengers in Latin America, therefore achieving better integration of Central and South America with the northern sections of the continent. A country with good transportation and communication infrastructure has better opportunities to compete internationally.

THREE TRANSVERSAL STRATEGIES OF THE NATIONAL DEVELOPMENT PLAN In addition to supporting the five national goals listed above, the SCT’s projects also meet the three transverse strategies of the national development plan.

1. Democratize productivity. Generate the conditions for universal access to telecommunication. Develop a logistics infrastructure that integrates all of the country’s regions with the nationals and international markets, such that businesses and production can expand nationwide. Push the development of the South-Southwest region to effectively link it to the rest of the country. A well-connected country democratizes productivity.

2. Generate a government that is closer and modern. Establish a channel of digital communication between localities of the country so that more Mexicans are included in the digital world. A well-connected country brings the government closer to its citizens.

3. Act with perspective of gender. Include the equality of gender in public policy programs, projects and compensatory instruments of the SCT, especially in full-time and temporary employment. A well-connected country contributes to ending discrimination. The vision of the SCT to develop an infrastructure and modern logistics platform for communications and transport that will allow the distribution of the nation’s goods, utilizing the most state-of-theart, cost-effective methods available. These plans will foster increased productivity, competition, economic development, good jobs and a better quality of life for Mexicans. The Mexico that we aspire to requires the investment of one billion dollars in infrastructure, transportation and communications. Fifty-four million dollars of these in communications and 46 million dollars in transportation infrastructure. The result of these investments will create a country where people, goods and services move around safely and more economically. A country with economic, sustainable growth and a better quality of life.



Kansas City

Southern de México

Committed to the Community




eadquartered in Kansas City, Missouri, Kansas City Southern (KCS) is a transportation holding company that has railroad investments in the U.S., Mexico and Panama with over 120 years experience in North America. Kansas City Southern de México (KCSM), headquartered in Mexico City, operates a rail system of approximately 3,100 route miles, serving northeastern and central Mexico and the port cities of Lázaro Cárdenas and Tampico, among others. A primary Mexican rail line, KCSM provides a direct connection between the U.S. and the industrial heartland of Mexico.   The company provides transportation of final products or raw materials to the most important commercial and industrial centers of United States, Canada and the Lázaro Cárdenas port, in

order to be shipped to and from Asia. Along with the commercial initiatives, KCSM has been working to strengthen the relationship within the communities where its railway net crosses. The organization is convinced that its commitment to Mexico includes being a good corporate citizen.   During the past 16 years, KCSM has been working in Mexico and has developed programs that involve a variety of themes such as security, sports, arts, and education. Some of these programs are:   ALTO TOTAL (OPERATION LIFESAVER) The Alto Total program is focused on creating awareness on the need to respect the signs at railway crossings. Through talks supported with audiovisual

material, trained staff of KCSM take this cautionary message to different organizations. Since 1998, the Alto Total program has taken this security message to more than 350,000 people in the 15 states where KCSM trains operate. KCSM’S TREN NAVIDEÑO (CHRISTMAS TRAIN) Every year in December, the KCSM’s Christmas Train goes to different cities in Mexico along the tracks and invites the community to watch a movie shown outdoors on a giant screen located beside the train. There, the attendees receive free popcorn, drinks, and scarves in order to enjoy the movie.   KCSM understands the importance of culture and has decorated a new boxcar with Diego Rivera’s painting, Niños Rompiendo Piñata, as a tribute to the

Through this program, the company intends to transform former ancient passenger stations into recreational spaces for the community such as parks, museums, education centers, public squares, and sport areas. Along with the state governments, KCSM has collaborated in the rescue of several stations such as:   • Antigua Estación de Carga de Ferrocarril of Pátzcuaro, in Michoachán state. This station allocates space for the cultural center Centro de Interpretación de la Ruta Don Vasco, where visitors can travel the towns founded by this Spanish bishop, —the first of Michoacán— who was famous for the handcrafting skills he taught to the locals which are preserved to this day.  • In Guanajuato state, the Comonfort station allocates an historical-cultural and recreational space for the visitors, while the San Miguel de Allende station includes a museum and other cultural areas. • The Saltillo station, in Coahuila, has a sport and cultural center. In that same state, the Ramos Arizpe station has been restored under the standards of the National Institute of Anthropology and History (Instituto Nacional de Antropología e Historia, INAH) and the National Institute of Fine Arts (Instituto Nacional de Bellas Artes, INBA). • Stations in Ciudad Valles, Ébano, and Cerritos in San Luis Potosí state, are currently in the restoration process. • These stations are independently run from KCSM’s railway net.   KCSM FOUNDATION To determine which area or initiative would be supported by the KCSM Foundation, a thorough analysis was conducted within the company, taking into account all company employees.

After this, it was decided that the Foundation would focus on the promotion of education of Mexican children. In 2012, the company created a Foundation which would work alongside Empresarios por la Educación Básica (Businessmen for the Basic Education, ExEb by its initials in Spanish), in order to promote a quality education by implementing the Scholar SelfManagement with Quality and Equity model.   To this day, through the ExEb program, KCSM has supported 10 elementary schools in Monterrey, Nuevo León state, located near the company’s railway. This has benefited more than 4,000 children, their families, as well as the community in general.   SPORTS AND CULTURE Another part of our social responsibility commitment is the promotion of sports and culture. The official sponsorship of Monarcas de Morelia Football Club is an example of this. Along with Club Monarcas, KCSM has supported different social causes, like visits to orphanages, in order to create awareness of the importance of practicing sports, and giving children of

distant communities the opportunity to meet the team players. The train is culture as well; therefore, KCSM became a proud sponsor of the International Morelia Film Festival (Festival Internacional de Cine de Morelia, FICM) for the fourth consecutive year.   The company’s commitment to art and the integral development of Mexico is clear, as this Festival has been a platform for many Mexican talents. Additionally, it has given new visibility to the national film industry. The mix of activities like both indoor and outdoor film screenings, such as, workshops, and exhibitions, motivate and inspire millions of young talents that want to be a part of the film community.   It is of great relevance that the social responsibility initiatives and sponsorship activities are aligned with the company’s  goals.   These are just some of the initiatives that KCSM performs to demonstrate its strong bond with society and with the communities where it has presence.   The company will keep working to strengthen this connection further, as well as continuing to contribute to the development of Mexico.


most important Mexican traditions that have inspired great artists. This is done with the help of other companies which aid this incredible event filled with magic to give a little bit back to the communities where KCSM’s trains run.   THE RESCUE OF OLD TRAIN STATIONS




Sao Paulo.

New York.





eromexico’s history began in 1934, with the founding of Aeronaves de Mexico. By the fifties, the carrier had opened offices in 21 cities in Mexico and two in the United States. In 1988, the company was incorporated as Aerovías de Mexico, S.A. de C.V., keeping the airline’s business name and Eagle Knight Insignia. It began operations on October 1st, 1988 with 25 airplanes and around 3,500 employees. The carrier grew significantly between 1989 and 2010, with the addition of the following new products and services:


◦Club Premier, the first airline loyalty program in Latin America. • The first nonstop flight between Mexico and Europe. • Gran Plan, the first vacation program in Mexico. • Alas de America Training Center (CECAM). • The carrier’s website. • Founding member of the SkyTeam global airline alliance.

• Air shuttle services between Mexico City and Monterrey and Guadalajara. • The addition of automatic check-in kiosks. • Web Check-in option. • Nonstop flights from Mexico City to major cities in Latin America and Asia. • Aeromexico Connect regional jet service for domestic flights.

The year 2011 was packed with a series of very important activities that strengthened the airline, such as relisting and trading on the Mexican Stock Exchange, and further consolidating its relationship with Delta Air Lines to expand its codeshare services and strengthen its MRO joint venture. As a founding member of the SkyTeam airline alliance, Aeromexico offers customers 1,000 destinations in 178 countries served by the 19 SkyTeam airline partners rewarding passengers with benefits including access to 530 premium airport lounges around the world.

Aeromexico also offers travel options on its codeshare partners’ flights served by Alaska Airlines, Avianca, LAN, TACA and TAM with extensive connectivity in countries like the United States, Brazil, Canada, Chile, Colombia and Peru. The carrier is a biofuel pioneer in the airline industry, as it flew the first trans-Atlantic flight fueled with biofuel in global aviation history, on the Mexico City-Madrid route in 2011. In 2013, Aeromexico received its third consecutive Corporate Social Responsibility award from the Mexican

Center for Philanthropy, and published its first Corporate Social Responsibility Report according to the Global Reporting Initiative (GRI) standards. The airline’s fleet of 115 airplanes is comprised of Boeing 787, 777, 767 and 737 jet airliners and next generation Embraer 145, 170, 175 and 190 models. In 2012, the carrier announced the largest investment strategy in aviation history in Mexico, to purchase 100 Boeing airplanes including 90 MAX B737 jet airliners and 10 B787-9 Dreamliners.

787 Dreamliner.

Current Aeromexico service includes more than 600 daily

flights from its main hub in Terminal 2 at the Mexico City International Airport. Its destinations feature more than 80 cities on three continents, including 47 destinations in Mexico, 17 in the United States, 10 in Latin America, three in Europe, two in Asia and one in Canada. For 79 years, Aeromexico has been the airline that connects all Mexicans with the world, and it will be for many years to come.

Ask your travel agent to book your flight on Aeromexico or call us at 1 (800) 237-6639. Visit


In October 2013, Aeromexico began operations of its first three Boeing 787 Dreamliners on routes from Mexico City to Tokyo - Japan, Paris - France and New York City. The 787 is the airline industry’s most current and wellequipped aircraft, changing the experience of flying with its structural and technological advances made available to passengers.


The U.S.-Mexico

High-Level Regulatory Cooperation Council

Third Council Meeting Progress Report

By Pablo Borchi Klapp Mexico Contact Point, U.S.- Mexico High-Level Regulatory Cooperation Council / Subsecretariat of Competitiveness and Business Regulations, Ministry of Economy





uring the past decade, governments have developed a greater interest in the importance of the potential benefits of international regulatory cooperation. Recent events such as 2008’s world economic crisis and the 2010 BP oil spill in the Gulf of Mexico, have made clear that, in an ever more interconnected world, local issues can have a significant impact beyond a country’s borders. International regulatory cooperation allows governments to share best practices and to align regulatory processes across countries which not only has a positive effect on international trade and investment, but also brings safety standards closer

together, thus reducing potential health and environmental risks. Mexico and the U.S. have long recognized the potential benefits of deepening their common regulatory cooperation processes. In this sense, since May 2010, both countries have worked together in an initiative called the U.S.-Mexico HighLevel Regulatory Cooperation Council. THE U.S.-MEXICO HIGH-LEVEL REGULATORY COOPERATION COUNCIL1 The Council was created by President Barack Obama and former President Felipe Calderón with the objective of bringing regulatory processes closer together to reduce the costs of trade and to promote investment across both countries. The Council is co-chaired by high-level officials from Mexico’s

Ministry of Economy (SE), the U.S. Department of Commerce (USDC), and the Office of Information and Regulatory Affairs (OIRA). The activities of the Council follow an adaptation of the Regulatory Governance Cycle recommended by the Organization for Economic Cooperation and Development (OECD), aligned to best international practices. This includes the 4 C’s: consultation, coordination, cooperation and communication. In February 2012, the Council published its first biannual work plan, establishing seven regulatory cooperation projects to be carried out by the relevant regulatory agencies from each country2. The selection of such projects was developed based on a public consultation process in both countries and utilizing criteria of high economic impact and high feasibility.

The topics of the work plan include:

continue moving forward toward the Council’s objectives. Agencies involved

1a. The facilitation of the adaptation process for the Mexican industry to the requirements of the new U.S. Food Safety Modernization Act (FSMA) 1b. Development of a module for the exchange of compatible electronic certificates for trading plants and plant products. 2. Development of Mexico’s new NOM-068 for the regulation of safety standards and procedures for motor carrier vehicles according to best international practices. 3. Alignment of Mexico’s approach to the regulation of nanotechnologies according to best international practices. 4. Development of a compatible electronic health registry system between both countries. 5. Alignment of safety standards and procedures for exploration and exploitation activities for hydrocarbons in the Gulf of Mexico. 6. Certification of Mexican conformity assessment bodies by U.S.’ authorities.


Mexico: CENAM U.S.: OIRA Mexico: SSA U.S.: HHS Mexico: CNH U.S.: BSEE, BOEM Mexico: SE U.S.: OSHA

THIRD COUNCIL MEETING IN MEXICO CITY ANNUAL PROGRESS REPORT As the scope of the work plan moves closer to its final deadline, the Council decided to gather in a plenary meeting that took place in the Executive Tower of the Ministry of Economy in Mexico City, August 15-16, 2013. The purpose of this meeting was to evaluate the advances reached within each project and to determine the next steps to both ensure the completion of the objectives of the work plan as well as to develop a new guiding document for the following two years. Unlike previous council meetings where only the co-chairs participated, this meeting involved a larger number of stakeholders, both to reinforce the high level character of the Council’s activities, as well as to nurture this mechanism from private and public feedback. The two-day event included several activities complementary to the plenary meeting. Among these were the inauguration session which included the participation of U.S. Ambassador Anthony Wayne and Mexico’s Minister of Economy, Ildefonso Guajardo, followed by the public presentation of the Work Plan Progress Report which stated a progress of 68 percent (17/25) of the deliverables established. Additionally, a series of stakeholder outreach sessions were carried out by the regulatory agencies involved in the Council, as well as holding private regulator-to-regulator work sessions. RESULTS FROM THE EVENT The Third Council Meeting was a very important step towards the consolidation of this regulatory cooperation mechanism as it helped to strengthen its high-level character, give a precise follow up to its activities and increase its awareness throughout the public and private sectors. Additionally, this event consisted of a solid evaluation exercise that helped the members of the Council identify some of the most relevant areas of opportunity that should be addressed in order to 1

One of the most important challenges identified was the need to develop impact evaluation exercises that allow regulators and other stakeholders to better understand the potential economic impact of the projects developed by the Council. The difficulty in assessing the impact of projects has repeatedly been one of the most important challenges faced across all regulatory cooperation mechanisms around the world. Not being able to properly communicate benefits of this type of project limits the political support in addition to human and financial resources that would otherwise be directed to them. In this sense, one of the results of the Third Council Meeting was the commitment from both countries to develop a plan for creating an impact evaluation structure that will allow assessment of the economic implications of the Council’s projects. It is intended that this mechanism structure will be integrated throughout the planning and implementation process of the next Council Work Plan. Another result of the meeting was that, both countries communicated their intention to ensure agencies such as Mexico’s COFEMER and the United States’ OIRA are involved in the development of the plan due to their relevant expertise on this type of evaluation. There were also important advances regarding each of the individual projects carried on by the Council. They are summarized in the following table:


Result / Next steps


Work Plan deliverables are accomplished. / The group will work toward increasing the exchange between regulators by the organization of visits from U.S. agencies to Mexican laboratories. The development of the exchange module continues at its planning stage. / The group will work to ensure the implementation of the module count with a clear legal framework. The NOM 068 has been updated; it awaits its publication in the “Diario Oficial de la Federación”. / Once the NOM is published, the group will evaluate the implementation of further activities to fully exploit the potential economic benefits of the new regulation. Work plan deliverables are accomplished. / The group will continue to work towards the implementation of a formal mechanism for the exchange of information regarding nanotechnologies. Regulators from both countries have shared information and best practices regarding the regulation of health information systems. / The group will work on the translation of the new Mexican regulation on health information systems. Work Plan deliverables are accomplished. / The group will work on bringing standard setting organizations such as API and ISO closer to this regulatory cooperation process. The scope of the project requires adjustments according to new information available. / The group will review conformity assessment processes in both countries in order to develop a new scope for bringing regulations closer together.







Finally, another result of the meeting was the determination of the renewal of the Council’s governance cycle. As the current work plan closes to its deadline, the Council agreed to work toward the creation of a new guiding document for its activities during the 2014–2016 Council. It is expected that this process will greatly benefit from the development of the impact evaluation mechanism.

For further information on the Council, visit: 2 The First Bi-annual Work Plan can be accessed at




I-635 reconstruction, taken from pedestrian bridge rebuilt & re-located over the construction site.

Monica R. Alonzo, Deputy Mayor Pro Tem.

Construction of Sylvan Bridge

Dallas, TX

Continues to Lead in Employment, Opportunities for Business and Investment By Deputy Mayor Pro Tem Monica R. Alonzo




s one of 14 elected City Council members representing 14 distinct districts and areas of Dallas, I am proud to represent District 6. For the next two years, I will also serve as Deputy Mayor Pro Tem.

Development web site, one of the major indicators of economic viability was the statistics that compare Dallas residents’ areas of employment to the U.S. averageespecially those careers where Dallas’ employment exceeds the U.S. average:

Serving in this leadership role is an honor for me, especially as a Latina. I wish to nurture Dallas’ future as an international leader in economic development and want to inspire and assist our burgeoning Spanish-speaking Latino community to invest in Dallas’ future as a means to improving the quality of life of each investor and resident. Statistics prove that the Hispanic market is growing both domestically and internationally. The Hispanic population is 43.9 percent of the 1,223.378 residents in Dallas; in the Dallas-Fort Worth Metroplex, the Hispanic population is 28.1 percent of 5,226,566 residents.

• Construction: 12 percent vs 7 percent • Information: 5 percent vs 3 percent • Finance/Insurance/Real Estate: 10 percent vs 7 percent • Professional/Scientific/Management: 14 percent vs 10 percent • Arts/Entertainment/Recreation: 10 percent vs 8 percent.

In reviewing the Dallas Economic

AS OUR CITY’S ECONOMIC DEVELOPMENT DEPARTMENT BOASTS: • Dallas is connected in all ways—from business to geography, talent to culture, technology to infrastructure. With a rich history of success, entrepreneurship, art, and family,

Dallas is a perfect reflection of an increasingly connected world. • From sporting events to a bustling nightlife and music scene, from some of the best food and shopping in the U.S. to exquisite museums, architecture and art, Dallas offers a truly diverse mix of culture and lifestyle. • Due to our location, pro-business attitude and favorable economic climate, Dallas has proven that it is a city where businesses thrive with numerous global companies calling us home. • Dallas provides the business environment and support that all companies need to succeed and grow, whether a small business or a major corporation. • Dallas continues to define itself as a world-class city. From great catalyst projects changing the city’s landscape to small-scale neighborhood revitalization, opportunities abound.

Trinity Groves

DART Green Line at new medical district - Parkland Memorial Hospital

Dallas’ very existence and growth can be attributed to the great leadership and commitment of talented business professionals, for example, the civil engineers who designed the railroad system that gave Dallas its start before the turn of the last century—and have been instrumental in it ever since. These individuals also designed and erected levees to contain the Trinity River, allowing the city to grow and develop into what we are today.

who have an interest in investment either financially or professionally.

The list of accomplishments made possible by the leadership, talent and creativity of those in both the public and private sectors goes on: Fair Park, Love Field, downtown skyscrapers, White Rock Lake, the Santiago Calatravadesigned Margaret Hunt Hill Bridge, and our still-growing, modern public transit system, DART. Our civic and business leaders continue to shape the future for Dallas and its unlimited potential. And opportunities still abound for individuals

Other factors to take into consideration when evaluating the prime location for business growth and investment:

BUSINESS OPPORTUNITIES Globally connected and centrally located, Dallas is the ideal location for businesses of any size, from headquarters for an international corporation to the home for your first office. Dallas has the personnel, talent, facilities and market access to help any business thrive.

• Dallas is centrally located in North America and connected to the continent and the world by highway, rail and air. Within 48 hours from Dallas, over 35 percent of the U.S. population can be reached by truck and over 98 percent by rail. All major U.S. business centers can be reached in

I am proud to say that the City of Dallas also offers assistance to international investors. The Federal EB-5 immigration process through the City of Dallas Regional Center (CDRC) assists individual investors and their families via investment in businesses and development projects located within the Dallas city limits. As a City Council member and as the Deputy Mayor Pro Tem of the City of Dallas, I stand ready to offer assistance to those entrepreneurs and investors who are looking for business opportunities that abound in Dallas, Texas. The District 6 Council Office and Office of the Deputy Mayor Pro Tem are available to assist in connecting interested investors and entrepreneurs with the correct staff members within the City of Dallas or elsewhere in the Dallas-Fort Worth Metroplex region. The office number is (214) 670-4199.


Jefferson Blvd.

3.5 hours or less by plane. • DFW International Airport provides non-stop access to 144 U.S. and 48 international cities and is a hub for American Airlines. In 2011, DFW Airport served 57.8 million passengers and 653,000 tons of cargo, making it the world’s fourth busiest airport. • Dallas Love Field flies 143 daily nonstop flights, serving eight million passengers annually. It is home to Southwest Airlines. In October 2014, the last eight gates of a new 20-gate terminal will open as the Wright Amendment flight restrictions lift to allow more nonstop destinations. • Dallas is a major interstate hub with five interstate highways (I-20, I-30, I-35, I-635, and I-45) within the city limits, two major loop roads and 19 federal and state highways. • Three major rail lines pass through Dallas: Burlington Northern Santa Fe (BNSF), Kansas City Southern and Union Pacific. Four rail intermodal facilities operate in the region. • There are 61 Dallas Area Rapid Transit (DART) light rail stations with over 85 miles of track. The DART system includes light rail, Trinity Railway Express (TRE) and buses serving Dallas and 13 surrounding cities across a 700-square-mile service area. The recent 28-mile extension of the Green Line was the largest light rail construction project in the U.S. A five-mile extension and station at DFW Airport is scheduled to open by 2015.




International Cooperation

for Money Laundering Prevention

By Iván Aleksei Alemán Loza, Vice-President of Supervision of Preventive Processes / Comision Nacional Bancaria y de Valores

In order to combat this global crime, many nations have already adopted international standards and regulations designed to prevent, detect and effectively combat money laundering. They have also established frameworks for worldwide cooperation, a fundamental element in a successful effort to battle this corruption. The National Banking and Securities Commission of Mexico (CNBV) plays a crucial role since it is responsible for monitoring and supervising entities and ensuring they comply with the established regulations designed to prevent money laundering and terrorist financing (ML/FT), preventing illegal resources from flowing into the money stream. This will also minimize the risk of those resources being used to perpetrate crimes, thus safeguarding the integrity and reputation of the country’s financial system. The critical importance of strategies to take on the task of anti-money laundering and funding of terrorism (AML/TF) requiring international cooperation cannot be overstated. In this effort, the CNBV actively participates in diverse forums on this matter which facilitate its direct participation in the development of AML/TF international standards and methodologies. Furthermore, the participation in these discussions allows the commission access to the most current information, policies and global procedures in order to improve its oversight methods and strengthen links with its international counterparts. It is worth mentioning that the CNBV

employs an AML/TF supervisory methodology that incorporates the highest international standards which were developed with technical assistance from the International Monetary Fund (IMF). This practice has a risk-based approach meaning that it measures the effectiveness of the criteria, and procedures implemented by the entities subject to regulation—primarily products and services considered most vulnerable to exploitation by potential money launderers and terrorism funders. This allows a focused assessment of the risks of each entity and determination of whether further corrective actions are needed. Moreover, the CNBV also networks with groups and organizations such as the Financial Action Task Force (FATF-GAFI), the most important intergovernmental entity in the world on the subject of AML/TF, and FATF South America (GAFISUD), through meetings and work groups. These activities also allow CNBV to stay abreast of the newest international standards and best practices. Mexico, through the CNBV, currently serves jointly with Peru as general coordinator of the Working Group on Risk Analysis and Financial Inclusion, which is integrated into GAFISUD. Through these associations, the CNBV enables Mexico to play a central role in the international scene. During the last several months, the CNBV has increased its cooperation and information exchange system especially with diverse U.S. agencies. Progress has been made in the review and improvement of agreements between the two countries, specifically with regard to identifying topics of mutual concern and establishing cooperative action strategies. The CNBV has been holding regular meetings with the following U.S. departments: Office of the Comptroller of the Currency (OCC); Federal Reserve System (FED) board of Governors; Office of Foreign Assets Control (OFAC); Internal Revenue Service (IRS); Department of Justice (DOJ); and Financial Crimes Enforcement Network (FinCEN). The close relationships with these U.S. agencies has allowed progress

in the exchange of information and enhances understanding of the legal framework and controls applied in each country. It also facilitates development of a shared recognition of the relevant financial entities so that authorities and supervised entities share a common goal. As a result of these collaborative efforts, CNBV issued a press release that highlights the measures implemented by the Mexican government aimed at reducing risks resulting from cash transactions of U.S. currency such as restrictions imposed on dollar amounts and geographic areas, and suspect individuals. There has also been stricter supervision of the AML/TF methodology with the objective of assisting Mexican and foreign financial institutions in evaluating risks of such transactions. Simultaneously, FinCEN issued an advisory for financial institutions in the U.S. referencing the efforts made by the CNBV. Although the U.S.-Mexico bilateral agenda is naturally the most essential at this point, it is important to note that Mexico is engaged in related activities with other countries such as Canada and Spain. In addition to the pursuits detailed previously, the CNBV also presides over the Working Group on Prevention of Assets Laundering and Financing of Terrorism, which was founded by the Banking Supervisors Association of the Americas (ASBA), a regional group comprised of members from more than 35 countries in the America continents. The objective of ASBA is to develop, disseminate and promote international standards in banking supervisory practices. This overview is only a narrow look into some of CNBV’s most recent activities, but these achievements affirm that international agreements and cooperation in areas of mutual concern on AML/TF matters have had positive impacts. However, the work of establishing new controls and strengthening existing ones in order to prevent financial entities from being used as vehicles for criminal money laundering must continue.



he crime of “money laundering”—processing illegally-obtained funds through channels that clean them of the taint of criminal activity— is an international problem requiring extensive monitoring and international cooperation to combat. The methods used to conceal the true origin of illegallygained profits often involve the transfer of money through other countries and their banks, with the result being the inability to trace those funds to the criminal or criminal activity as they are funneled back into the country and to the original group or individual.


Transboundary Hydrocarbon Agreement Update

By Victor L. Cardenas Jr. Shareholder at Jackson Gilmour & Dobbs, PC




espite the partisanship and gridlock that has plagued Washington D.C. in recent years, it appears lawmakers have put aside their differences for the time being in an effort to approve an important bilateral agreement between the U.S. and Mexico known as the Transboundary Hydrocarbon Agreement (“Agreement”). The Agreement aims to lift the moratorium on oil and gas leasing in the Western Gap in the Gulf of Mexico, provides legal certainty for development along the entire transboundary area, and opens access to over a million new acres on the Outer Continental Shelf. The Bureau of Ocean Energy Management estimates these acres could contain up to 172 million barrels of oil and 304 billion cubic feet of natural gas. After a year of little progress, significant

steps were taken by the legislature over the last sixty days to push the Agreement forward. A full committee hearing was held on October 1, 2013 to consider Senate Bill 812 (2013) and House Bill 1613 (2013). This was quickly followed by the U.S. Senate’s approval of Senate Bill 812 on October 12, 2013. The Senate bill was sent to the U.S. House of Representatives where it has since been Ordered Held at the House Desk after being received from the House. Both bills authorize the Secretary of the Interior to approve unitization agreements to develop oil and gas resources in the transboundary area; disclose information necessary to implement the agreement and manage development; and to participate in and implement dispute settlements. The key difference between the two bills is that the House version includes a waiver from the Dodd-Frank law

(“waiver”), which mandates disclosure of payments to foreign governments. Although House Republicans have insisted on the waiver, the American Petroleum Institute recently came out in support of the Senate version, which excludes such a waiver. This has been seen as a signal that advocates of the Agreement are willing to drop the waiver provision altogether. The Agreement was signed by Mexico and the U.S. on February 20, 2012, and ratified by the Mexican Senate two months later. Although the U.S. has been slow to move, the Congress now appears poised to approve the Agreement. This would be an important step towards making the first energy partnership between the U.S. and Mexico in over fifty years a reality. BY VICTOR L. CARDENAS JR.

ARTICLE UPDATE NOVEMBER 13, 2013: On October 12, 2013, the U.S. Senate approved Senate Bill 812 authorizing the U.S. Department of Interior to implement the terms of the Gulf of Mexico Transboundary Agreement with Mexico. Senate Bill 812 was sent to the U.S. House of Representatives were it has since been Ordered Held at the House Desk after being received from the House. It remains to be seen whether the House will take up the Senate version or insist on a conference committee to work out the differences.

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