Alliance 26

United States - Mexico Chamber of Commerce Binational Business Magazine

Year / Año 16 // Nº 26 // USA $4.00 // MEX $ 45.00

United with technology without borders

UPDATE

ANALYSIS

Goodbye to the Federal District! México City is now official.

Insights and outlook on the global economy, trade opportunities and challenges.

The Mexican Stock Exchange and the housing sector strengthen Mexico’s development.

Mexico: Keeping a steady economic course.

MEMBER HIGHLIGHTS Zebra Technology.

EDITORIAL COUNCIL UNITED STATES MEXICO CHAMBER OF COMMERCE Albert C. Zapanta,

President & CEO, Binational Headquarters;

EDITORIAL

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; and Jill Martínez, Editor.

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

CONCEPT & MAGAZINE DESIGN Editorial Coordinator Cecilia López ceci.lopez@usmcoc.org PRGNRS branding / advertising / interactive Graphic Designers Israel de la Fuente if@prgnrs.com Christopher Jareño cj@prgnrs.com Alejandra Rodríguez ar@prgnrs.com

EDITORIAL CONTRIBUTORS Joseph Chapa Marlen Marroquin Claudia Vidal Nick Ortiz Luis Morris Gabriela Michan Ruth Martinez Josie Orosco Pete Garcia Sergio Ponce Marianna Russell

PRINTED BY

For advertising inquiries, contact: Rafael López rafa.lopez@multicolorig.com Executive Director PROMEXE Gabriela Kenny gabriela.kenny@usmcoc.org Director of Communications Cecilia López ceci.lopez@usmcoc.org

ALLIANCE, revista cuatrimestral. Abril / julio 2016.- Publicación de la Camara de Comercio México Estados Unidos y Promotora Mexicana de Ediciones, S.A. DE C.V. (PROMEXE). Editor Responsable: Francisco Javier López Espinoza. Número de Certificado de Reserva otorgado por el Instituto Nacional del Derecho de Autor: 04-2013-071518324800-102.

Número de Certificado de Licitud de Título y Contenido: 16157. Domicilio de la Publicación: José María Chávez #3408-A. Cd. Industrial. C.P. 20290.

Aguascalientes., Ags. Imprenta: Multicolor Gran Formato S.A. de C.V. José María Chávez #3408. Cd. Industrial. C.P. 20290. Aguascalientes., Ags. Distribuidor, PROMEXE José María Chávez # 3408-A. Cd. Industrial. C.P. 20290.

Aguascalientes., Ags. Camara de Comercio Mexico Estados Unidos, 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.

Dear Friends, There is never a higher value to information in business than when you can actually effectively monetize it.

As the spring 2016 edition of our magazine, Alliance, rolls out, U.S.-Mexico trade gets a further boost by the imminent start of the private sector investment in hydrocarbon exploration and production. Potential binational projects are attracting investments on both sides of the border. At this stage, it is of critical importance to understand how to capitalize on these opportunities.

Recent efforts by the U.S. and Mexico focused on regional economic integration are gaining momentum. Trade initiatives described here are generating new business opportunities, models, and success for those who reach out to the broader binational market.

Secretary general of the Organization for Economic Cooperation and Development (OECD), Angel Gurria’s contribution informs us about the new business order wherein we must succeed in an environment of slower growth.

According to the OECD, a higher trade volume can enable higher growth-rates globally.

My most sincere appreciation and congratulations to Andre Arbelaez and the Hispanic IT Executive Council (HITEC) which has kicked off with a clear example of business leadership joining forces to create stronger binational leadership in information technology.

We thank Luis Videgaray, Mexico’s Minister of Finance, for his article

on Mexico’s efforts to maintain steady, economic growth in light of the drop in oil prices and other commodities. Mexico’s model of financial prudence and precaution should be adopted in enterprise as a further instrument to manage unexpected business cycles.

I also want to thank all the contributors to Alliance who ensure this great communications tool continues to showcase the successes in bi-national trade and congratulations to all who have persevered and arrived at a place of common ground where each part elevates the other to achieve unique results. And it is just as important to thank our sponsors, members and friends for your contributions and support to this publication.

It is noticeable that the trade winds towards a “smooth sailing” start to strengthen both in the world of business. It is a pleasure to highlight the leadership shown by those organizations that have really capitalized from the business environment we are experiencing as well as sharing my gratitude to those who continue to the coach our readers on US-Mexico business practices, especially those illuminating us on the mechanics of business and tax efficiency.

Please save the date of our Annual Board of Directors Meeting, Binational Conference and Good Neighbors Awards Gala, which will be held May 24-25, 2016, in Washington D.C. Visit our website usmcoc.org for registration and more information. Look forward to seeing you there!

Un abrazo.

Albert Zapanta President & CEO

CHAPTER OFFICES / CAPÍTULO DE OFICINAS

p.02

CONTENTS

04

18 COVER

EN PORTADA

CHAPTER OFFICE

Chapter Activities

OFICINAS DEL CAPÍTULO

06 BRIEFS BREVES

07

UPDATES

ACTIVIDADES DEL CAPÍTULO

38 ANALYSIS ANÁLISIS

Insights and outlook on the global economy, trade opportunities and challenges

ACTUALIZACIÓN

14

LEADERSHIP AND MANAGEMENT LIDERAZGO Y GERENCIA

26

42

ANALYSIS ANÁLISIS

Mexico: Keeping a Steady Economic Course

62

Upcoming events/ PRÓXIMOS EVENTOS

60

MEMBERS HIGHTLIGHTS MIEMBROS DESTACADOS

64

New Members /

NUEVOS MIEMBROS

En MABE International Advisors, hacemos algo más que consultar...

PROVEEMOS SOLUCIONES ADECUADAS PARA EL BENEFICIO DE SU ACTIVIDAD ECONÓMICA. SERVICIO EN USA

SERVICIO EN MÉXICO

Registro Contable (Bookkeeping)

Registro y Asesoría Contable (Accounting and Business Consulting)

Creación de compañias en todo USA (Bussines Creation)

Asesoría Fiscal y Financiera (Tax and Financial Consulting)

Certificado de exención Texas para Efecto de Exportación (Texas Sales Tax Export Exemption)

Defensa Fiscal (Fiscal Lawyer) Auditorías para Fines Fiscales - SHCP, IMSS, INFONAVIT (Tax Audits)

Solicitud y Trámites de EIN (Filing for an EIN) Nómina (Payroll)

Terceración y Administración de Nómina (Outsourcing and Payroll Administration)

Impuestos Personales (Personal Tax)

Capacitación Empresarial (Bussiness Training)

Impuestos Corporativos (Corporate Tax)

Precios de Transferencia (Transfer Pricing)

Tratado para evitar la Doble Tributación entre México y USA (Double Tax Agreement) Precios de Transferencia (Transfer Pricing)

HOUSTON, TEXAS, USA

TAMPICO, TAMPS, MEX

QUERETARO, QRO, MEX

THE WOODLANDS, TEXAS

281 741 3691

011 52 833 217 85 00 al 20

011 52 442 225 3271

281 741 3691

rmaya@mabetax.com

www.mabetax.com

www.mayacontadores.com

CHAPTER OFFICES

THE AMBASSADOR OF GOOD BUSINESS www.usmcoc.org

Albert Zapanta

Joseph R. Chapa

Alejandro Ramos

Gabriela Kenny

California Regional Chapter Los Angeles, CA JUDITH A. WILSON President MARLEN MARROQUIN Executive Director 1800 Century Park East Suite 300 Los Angeles, CA 90067 (310) 598-4188 marlen@usmcocca.org

Mid-America Chapter Chicago, IL GERY CHICO President TERESA REYES Executive Director Blue Cross Blue Shield Building 300 E. Randolph Dr. 47th floor Chicago, Il 60601 (312) 729-1355 / (312) 729-1356 F: (312) 729 1354 teresa.reyes@usmcoc.org

Aguascalientes Chapter Aguascalientes, Ags. JAIME DEL CONDE UGARTE President RODOLFO RODRÍGUEZ CASILLAS Executive Director Av. Independencia 1602 Col. Fátima Aguascalientes, Ags. (449) 914-6863 y (449) 153-3553

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 (81) 8191-7800 rfuerte@usmcocmtymx.org rfuerte@gmail.com

PRESIDENT & CEO Binational Office 6800 Versar Center Dr. Suite 450 Springfield VA 2215 zapantaz@usmcoc.org (469) 567-0921 F: (703) 642-1088

Inter-American Chapter Miami, FL DAVID B. ROSEMBERG President RUTH MARTINEZ Executive Director 2 S. Biscayne Blvd 21st Floor, Suite 2100, Miami, FL 33131 (786) 631-4179 interamerican@usmcocfl.org Inter-Mountain Chapter, Salt Lake City, Utah KEITH ATKINSON Executive Director DANIEL LEIFSON Assistant Executive Director 1123 Sandtrap Circle North Salt Lake City Utah, 84054 (801) 200 4714 keithjatkinson@yahoo.com International Trade Development and Assistance Center JOSEPH R. CHAPA Executive Director 207 Mandalay Canal Irving, TX 75039 (469) 567-0922 jrchapa@usmcoc.org Washington, D.C. Office Mid-Atlantic Chapter PRISCILLA ZOZAYA Coordinator 6800 Vesar Center Dr., Suite 450 Springfield, VA 22151 pzozaya@usmcoc.com (202)714-6564 (703) 752-4751

Vice President Western Region Executive Director Trade Development and Assistant Center jrchapa@usmcoc.org (469) 567-0922 F: (703) 642-1088

Northeast Chapter New York, NY EDUARDO RAMOS-GÓMEZ President ALEJANDRO RAMOS Executive Director 1540 Broadway, Suite 1400 New York, NY. 10036-4086 (212) 471-4703 F: (212) 471-4701 alejandro@usmcocne.org Pacific Northwest Chapter Seattle, WA LUIS MORRIS VELARDE President 800 5th Ave. #101-260 Seattle,WA 98104-3102 (425) 320-3844 lmorris@usmcocnw.org Southwest Chapter Dallas, TX VINCENT CHAPA President JOSIE OROSCO Executive Director 901 Main Street, 44th. Floor Dallas, TX 75202 (214) 651-4300 / (817) 881 0264 F: (214) 747 1994 swusmx@netzero.com Houston-The Woodlands-Gulf Coast Chapter, Houston, TX JULIE CHARROS-BETANCOR President PETE GARCIA Executive Director 4582 Kingwood Dr Suite E-334 Kingwood, TX 77345 (713) 854-1577 pete@chambergc.org

Vice President Eastern Region Executive Director of Northeast Chapter alejandro@usmcocne.org (212) 471-4703 F: (212) 471-4701

Golfo Chapter Veracruz, Ver. ANDRES QUIALA President Simon Bolivar no. 705. casi esquina con España.

Despacho 3 Colonia Zaragoza C.P. 91910 Veracruz, Ver. México (229) 937-0598 F: (229) 100-3857 aquiala@usmcoc.org Guanajuato Chapter León, Gto. ANTONIO VARGAS NAVARRO President SERGIO PONCE LÓPEZ Executive Director Blvd. Campestre No. 1215, Int. 12 Col. Panorama León, Gto. 37160 (477) 779-5670 sergio.ponce@usmcoc.org Michoacán Chapter Morelia, Mich.

NICK ORTIZ President LUCY CHÁVEZ Executive Director usmcocmich2@gmail.com Melo 166-B Morelia Michoacan C.P. 58000 (443) 353-2927

Director of Communications North American Headquarters 207 Mandalay Canal Irving, TX 75039 gabriela.kenny@usmcoc.org (469) 567-0923 F: (703) 642-1088

Pacífico Chapter Guadalajara, Jal. FRANCISCO CASTELLANOS President CHRISTOPHER BRICIO VP Startegic Sectors Av. Prolongación Americas 1600, Piso 2 Col. Country Club Guadalajara 44610 Jalisco, Mexico (33) 1813-1400 pacifico@usmcoc.org Puebla Chapter Puebla, Pue. FERNANDO A. TREVIÑO President VIDAUR MORA Executive Director 31 Poniente No. 4128 9º Piso Letra A Col. Ampliación Reforma Puebla, Pue. 72160 (222) 249-8828 F: 222) 249-2361 puebla@usmcocpue.org Querétaro Chapter Querétaro, Qro. MÓNICA LÓPEZ Trade Representative queretaro@usmcoc.org Valle de México Chapter Mexico City JOSE GARCIA TORRES President CLAUDIA VIDAL Executive Director Av. Insurgentes Sur 1605 Torre Mural, Piso 25, Mod. 3 Col. San José Insurgentes Benito Juárez, 03900. México, D.F. (55) 5662-6103 F: (55) 5683-2700 c_vidal@usmcoc.org

BRIEFS / BREVES

p.06

Caborca Boots: One Step Ahead

C

aborca Boots has doubled its size in the last five years as well as receiving with Mexico’s National Award in Exports and the European Flower Certificate for sustainable products. This recognition is due to a high quality of work and a well-executed partnership.

Caborca Boots exports 90 percent of its production to the United States where their products are well-rated and accepted.

Delta and

Aeromexico: 21 Years of Partnership

D

elta Air Lines, Inc. and Aeromexico currently offer a total of 103 codeshare flights, representing over 900 daily flights in six countries. The airlines maintain a longstanding partnership that began in 1994.

This joint collaboration between Delta and Aeromexico offers an expanded network of destinations for both business and tourism. The strategic alliance aims to establish itself as the best choice for flights in the cross-border U.S.-Mexico market, offering the best products, schedules, connections, destinations and service for customers.

Telecontrol T

elecontrol S.A. de C.V., a member of the Valle de Mexico Chapter in Mexico City, recently installed a thermodynamic research and development laboratory for SECOP Inc., an expert in advanced compressor technologies in Atlanta, Georgia. This lab is required in order to make accurate psychrometric tests1. SECOP engineers can generate extreme climate conditions inside the chamber to record the behavior of refrigerators and coolers. The data obtained is essential for improving costs and energy savings.

Telecontrol develops and manufactures software, high accuracy measurement instrumentation and intelligent controls operating in its laboratories, performing with high stability. Telecontrol calibrates all instruments complying with certified primary standards as specified by the National Institute of Standards and Technology, Federal Electricity Commission, Official Mexican Standard and Underwriters Laboratory.

1 The field of engineering concerned with the determination of physical and thermodynamic properties of gas-vapor mixtures.

UPDATE / ACTUALIZACIONES

The Binational Business Magazine

p.07

When Does Tax Residency in the U.S. Apply to Business Presence?

By Rodolfo Maya, Managing Director, MABE International Advisors, Inc.

This article discusses general principles of international tax law. It is not intended to provide tax advice. Consult your tax professional to provide tax advice based on your specific circumstances.

Surely this and many other questions are being asked by entrepreneurs throughout the United States.

three years, the formula to determine whether the person is considered a tax resident is applied as follows:

It is important to understand that residence in United States for the purposes of tax does not necessarily have to do with immigration residence.

An individual can have a tourist visa and may unknowingly become a tax resident in the U.S. That status can result from the “substantial presence� test which is the number of days the person has been in United States using the following calculation:

100 days in 2013 (consecutive or not), divided by 6 = 17 days 120 days in 2014 (consecutive or not), divided by 3 = 40 130 days in 2015 (consecutive or not), at 100 percent = 130 Total number of applicable days = 187

The number of days in the third year in U.S. divided by six.

The number of days in the second to the last year in U.S. divided by three.

One hundred percent of the number of days in the previous year in U.S. Rodolfo Maya, MBA, CPC, is the managing director at MABE International Advisors, Inc. and an IRS Tax Authorized Agent.

For example, if an individual is not a citizen or a permanent resident of the U.S., but was living in the U.S. a significant number of days over the past

Because 187 days is more than fifty percent of the year (183 days), this individual would be considered a tax resident of the U.S. for the 2015 tax year.

Being or becoming a U.S. tax resident involves reporting all income generated by the taxpayer anywhere in the world.

The IRS requires the taxpayer to report all bank accounts held outside of the U.S., this includes bank accounts under his/her name or any other case where the taxpayer is a signatory.

Additionally, the taxpayer must disclose and submit financial statements for any company in which he or she is a shareholder of more than 10 percent. These reports must comply with U.S. GAAP accounting standards. Fines and late delivery of information to the IRS can be very expensive so it is very important to accurately report all sources of income to properly determine the year’s tax obligations.

There are also three other situations where the tax residence applies to an individual: 1. When the individual is a U.S. citizen, 2. When the individual is a permanent resent (Green Card holder) , and 3. Voluntarily decides to apply the tax residence regardless of their status immigration.

Fortunately, the United States and Mexico have an agreement to avoid double taxation where more rules on this could apply to each particular case.

UPDATE / ACTUALIZACIONES

p.08

The Mexican Stock Exchange and the Housing Sector Strengthen Mexico’s Development

T

he year 2016 will be significant for the Mexican Stock Exchange. After a period when companies from the housing sector did not carry out stock placements, they have now reactivated their participation in the capital market.

The housing sector represents a trigger for the economic development of the country not only because it financially activates other related housing development sectors, but it also comprises an essential element in the well-being of the Mexican population.

José-Oriol Bosch, CEO of the Mexican Stock Exchange Group (BMV Group), emphasized that the return of housing companies to the trading institution is a clear sign that they have found the right conditions to finance their growth and, simultaneously, contribute to the development of Mexico. Bosch stated, “I am convinced that with the everyone’s work, whether they are entities granting mortgage credits or organizations in charge of outlining the public policies for housing, or even developers, this sector will grow stronger and will remain a pillar for the well-being of Mexicans.”

Information provided by the Corporate Communications Department of BMV Group. They can be contacted at bmv-comunicacion@grupobmv.com.mx.

JAVER first stock offering CADU rings the bell at of 2016 and the first public BMV as the first company offering in Latin America in the Latin American Integrated Market (MILA) Servicios Corporativos Javer, S.A.B. de C.V. is one of the most traditional housing development companies in northern Mexico with more than 40 years of experience in the market. The company specializes in home construction in major cities throughout Mexico.

The company held its initial public offering, its Primary Public Offering of Shares, in January 2016, offering 34.04 percent of its share capital. Operating under the ticker symbol, JAVER, and the placed amount reached $136 million.

The placement from JAVER is the first public offering of shares in the Mexican Stock Exchange and the Latin American stock markets so far in 2016.

After its opening at the Mexican Stock Exchange in December 2015, Corpovael, S.A.B. de C.V., a company focused on home building in Mexico, held a ceremony on the trading floor balcony to commemorate it’s Mixed Public Offering of Stock for a total of more than $138 million, which represents 36.79 percent of its share capital.

Thus, the company with the ticker symbol CADU, becomes the first Mexican company to make an offering of shares in the markets of Mexico and MILA, the Latin American Integrated Market, comprised of the stock exchanges of Chile, Colombia and Peru.

It must be noted that Mexico remains an attractive destination for investments and businesses which represents a decisive reliability factor for all markets. In this context, the Mexican Stock Exchange reaffirms its commitment to keep supporting the companies and serving as a catalyst for the financial development of the country.

SUPPORTING CROSS-BORDER BUSINESS GARDERE HAS BEEN PROVIDING ITS CLIENTS WITH SEAMLESS REPRESENTATION ACROSS BORDERS FOR OVER 20 YEARS. Our award-winning Mexico and Latin America Practice, now operating in Mexico as Gardere, Arena y Asociados, S.C., represents U.S., European and Pacific Rim clients with business and investment opportunities into Mexico and advises Mexican private and publicly traded corporations in domestic and international matters.

Our lawyers also represent clients involved in domestic and cross-border disputes. Our core focus includes corporate, energy, environmental, financial services, hospitality, international arbitration and disputes, intellectual property, labor and employment, litigation, mergers and acquisitions, real estate, tax and transportation.

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UPDATE / ACTUALIDAD

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Goodbye to the Federal District— Mexico City Is Now Official!

By Eduardo Gallastegui, Managing Partner, DLA Piper/ Gallastegui y Lozano

O

n January 29, 2016, Mexican President Enrique Peña Nieto published the Constitutional Reform Decree (the “Reform”) giving Mexico City greater independence.

The city will no longer be designated a federal district; rather, the decree creates a federal entity under the name “Mexico City.”

The key points of the Reform can be summarized as follows: The federal entity of Mexico City remains the site of the federal government (executive, legislative and judicial branches) and capital of the United Mexican States.

The federal entity of Mexico City is (i) autonomous with respect to any matters that are not specifically reserved for the federal government; and, (ii) it may be governed by its own political constitution. However, the autonomy of the federal district as a federal entity is limited provided that the Reform sets forth certain restrictions for the issuance of its constitution and the integration of its government.

A Constitutional Drafting Council (Asamblea Constituyente) comprised of one hundred members, will be in charge of the drafting and issuance of the constitution of the federal entity of Mexico City. The political constitution of Mexico City shall be issued no later than January 31, 2017.

The federal entity of Mexico City shall be politically divided into territorial areas (demarcaciones territoriales) which will be headed by mayors and will replace the former political divisions known as delegations (delegaciones). It is important to point out that the territories of each delegation of the former federal district will not change as a consequence of the Reform.

The legislative branch of Mexico City is granted to the Mexico City Congress (Legislatura del Distrito Federal), substituting the former legislative council of the federal district (Asamblea Legislativa del Distrito Federal). As a consequence, the Mexico City Congress (i) is now entitled to initiate federal laws before any of the chambers of the Mexican congress; and, (ii) may participate in the constitutional body in charge of reforming the Mexican Constitution.

The executive branch will still be in charge of the chief of government of the city (Jefe de Gobierno del Distrito Federal) and such person may not be removed by the Mexican senate anymore, or appointed in case of permanent absence.

The federal government, Mexico City and the adjacent states shall integrate an Urban Development Council (Consejo de Desarrollo Metropolitano) in order to establish mechanisms to coordinate urban development planning and the performance of public services within the me-tropolitan area of Mexico City.

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UPDATE / ACTUALIDAD

p.12

Taxes Are Up, Do You Have a Problem with Them?

By Chris Baker, General Director of Stegent and Garcia

A

s Benjamin Franklin once observed, “In this world, nothing can be said to be certain, except death and taxes.” Although this quote dates back to the 1700s, it has never been more relevant than now. Unless a sound financial strategy is in place, there are many types of taxes that hinder your ability to save money and efficiently grow your wealth. Furthermore, estate taxes

Income Taxes

hinder your ability to efficiently transfer your money to your loved ones after death. In January 2013, the income and estate tax rates changed significantly.

This article will focus on the income tax changes and how they impact our ability to accumulate wealth. The chart below illustrates some of the key changes that took effect in 2013.

Past

Current

Income tax

t 35% Investmen

Capital Gains

15%

Dividens

15%

20.0%*

Investment surtax

0%

3.8%*

surtax

*

t 39.6%* Investmen

surtax

20.0%* *

*Maximum tax rate

Tax Preferred Savings Plans

A

s the chart shows, the increased tax rates can negatively impact your ability to save and grow money. Additionally, 401(k) plans and IRAs, along with government programs like Social Security, won’t solve this problem for many high-income ear-

ners due to low contribution limits. The burden is on your shoulders to prepare for the future by determining how much savings you will need in the coming years, and the best manner to achieve your financial goals.

401 (k) Retirement Plans 2016 maximum contribution: $18,000 Catch-up provision for employees age 50 or over: $6,000 Maximum annual compensation taken into account for Qualifield Plans is $256,000

Source - Pen-Cal

Individual Retirement Accounts (IRAs) / Roth IRAs 2016 maximum contribution: $5,500 Catch-up provision for individuals age 50 or over: $1,000 Plan contribution deductibily is phased out based on tax filing status and compesation

SOCIAL SECURITY Wage base: $118,500 Maximum benefit: $31,956 Full retirement age: 65-67

UPDATE / ACTUALIDAD

The Binational Business Magazine

p.13

I

f you feel a little discouraged reading this, you aren’t alone. Most successful people I talk to, like my colleague, Pete Garcia, executive director of the U.S.-Mexico Chamber of Commerce Gulf Coast Chapter and principal at Stegent & Garcia, feel the same way. Garcia was aware of the income tax drag on his

investment portfolio performance so he challenged us to find him a low-risk income tax solution to maximize the growth his portfolio.

He assumed that if he earned seven percent annual interest in a tax-deferred account (Rule of 72), his money would double in 10 years

Tax Preferred Savings Plans

but, if he kept his money in a taxable account assuming a 25-percent annual tax rate (Rule of 96), it would take 14 years for his money to double at the same seven-percent annual interest rate. According to that scenario, if he pays a 39.6-percent ordinary income tax (Rule of 120), it would actually take him 17 years to double his savings at the seven percent rate.

Rule of 72. To estimate the time it would take for an initial investment to double in a tax-deferred account,

divide 72 by the growth rate.

Rule of 96. To estimate the time it would take for an initial investment to double in a taxable account using

an average tax rate of 25 percent, divide 96 by the growth rate.

Rule of 120. To estimate the time it would take for an initial investment to double in a taxable account, at

the maximum tax bracket of 39.6 percent, divide 120 by the growth rate.

Years Until Investment Doubles

*Does not take into account states taxes

R

ed Flag, L.L.C. founder Chuck Hollander is a nationally-recognized leader in helping people navigate change in their lives. His research found that successful people like Garcia want to know the answers to four key questions:

1.Do I have a problem?

2.How big is the problem?

3.What are the consequences of not fixing the problem?

4.Who else is impacted?

Chris Baker Managing Partner for TexIns Solutions, Ltd. Member of National Association of Insurance and Financial Advisors (NAIFA), The Association for Advanced Life Underwriting (AALU), Forum 400 (former president chairman of the board) and serves on several insurance company advisory councils.

Ask yourself these questions with respect to income taxes and your personal savings and retirement preparation.

You may conclude—as Garcia did—that the detrimental effect of taxes on your portfolio increases as your income increases. This problem is unlikely to go away anytime soon, and not addressing the problem could affect your future and the future of your family.

If properly structured and designed, tax-deferred investing makes sense for many people. Fixed universal life insurance products can offer effective and efficient solutions to these problems.

While it would be improper for me to make categorical product recommendations to anyone that I have not interviewed, I do recommend that you seek the advice of a qualified insurance broker to help you navigate change and get answers to the four key questions.

Alliance

LEADERSHIP AND MANAGEMENT / LIDERAZGO Y GERENCIA

p.14

Cultural Intelligence in International Business Using Head, Heart & Hands to build CQ By: Fernando Sanchez-Arias, Vice- President of the USMCOC, Corporate Director & CLO of LUKIVEN Global Energy & Business Group and Catherine Knotts, Editor & Facilitator, Mejorar U.S.

C

ross-border mergers and acquisitions totaled $1.3 trillion in 2014, accounting for 37 percent of all global business transactions. Up to 60 percent of these dealings will fail. Research suggests misunderstanding cultural differences is a critical factor causing global mergers and acquisitions to collapse. As companies continue to outsource services and operations abroad, effective cross-cultural interactions become increasingly imperative to the survival of global businesses.

The complexity of the global market demands culturally knowledgeable people who are able to effectively achieve organizational goals while working with people from diverse cultures. This illustrates the necessity for developing what researcher P. Christopher Early and Soon Ang call the construct of cultural intelligence (CQ), a set of cognitive, motivational and behavioral facets needed to effectively deal with cultural factors.

The construct of CQ encompasses three aspects: 1) cognitive, i.e. knowledge processes, knowledge structures and pattern recognition; 2) motivational, i.e. energy direction, persistence, values; and 3) behavioral, i.e. practices, actions, rituals, habits.

When viewed in terms of the human body, the CQ components become: 1) the Head representing cognition, knowledge, meta-cognition and strategy; 2) the Heart, for motivation, drive and mindfulness; and 3) Hands for the behavior and action.

This metaphor encourages international business people to use their heads, hearts and hands to successfully achieve personal and professional objectives when facing cross-cultural assignments and attitudes. To think and learn using the best strategy, to direct the energy and the best emotional state toward the achievement of the planned goals, and to take the right actions to produce the best level of results in any cross-cultural setting.

When we examine how CQ is acquired, activities such as learning design, teaching strategy and program development are crucial to the success of cross-cultural training experiences. Leaders and managers should begin planning, designing, conducting and managing educational and training initiatives for their overseas workforces and the local team members dealing with multiculturalism and diversity.

To allow international business people to develop cultural intelligence, training and development initiatives need to be grounded in experiences drawn from those who have worked in multi-cultural environments and use their expectations, needs and desires to make more effective learning experiences.

This will generate a culturally intelligent workforce, capable of using their Heads, Hearts and Hands to bridge cultural gaps and effectively navigate cross-border business interactions.

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Houston, The Woodlands and the Gulf Coast: A Local Perspective by Mario Garcia

AM: Certainly, Houston is going through tough times right now because of the poor energy prices. What do you think is the impact these tough times may have in the area?

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Mr. Garcia: The big picture is that the tough times are not here to stay. This is not Houston’s first rodeo, as they say.

lthough news headlines may suggest a somber story for Texas for 2016, Texas continues to drive the economy of the United States—and the world.

The Texas markets of Dallas-Fort Worth, Austin and San Antonio, the Rio Grande Valley, and the Houston area, form the heart of the Texas economy and account for the vast majority of the state’s population, jobs and income.

Mario E. Garcia, a CPA and tax partner with Houston-based Calvetti Ferguson, shares his experiences as a longtime member of the region.

He is a respected leader in the international community as a tax advisor to Houston-based and international middle-market companies. He has been a driving force for cross-border business throughout his career and continues to grow the international clientele of the firm.

Garcia has served as a member of the board of the local chapter of the U.S.-Mexico Chamber of Commerce and has been a longstanding member of the American Institute of Certified Public Accountants (AICPA).

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Houston Partnership website: www.houston.org/ economy/#FactsFigures

Alliance Magazine: Mr. Garcia, please tell us about your history in the Houston market and what you have seen over the years with respect to cross-border business.

Mr. Garcia: First of all, thank you for the opportunity to talk about my experiences in the area. I was born in México and have been in Texas all of my adult life. I have served as a tax advisor to Houston businesses since 2001 after attaining a Masters in Taxation from the University of Texas at Austin’s McCombs School of Business.

I have more than 15 years of experience working with many great middle-market energy, manufacturing, food distribution, healthcare and international companies.

Year after year, Houston becomes more and more of an international center for business in a wide range of industries. The international business is ripe and growing.

In particular, Mexican and multinational businesses continue to show more interest in Houston than other areas of the U.S. Many of them have had local subsidiaries operating, importing and exporting products to México and the rest of the world.

Local organizations such as the Greater Houston Partnership help us attract a lot of that business.1 AM: How’s 2016 looking for the Houston area?

Mr. Garcia: In spite of what you hear, it’s been a two-way street in terms of business and trade. There are companies that have owners from all over México and most other major foreign markets in addition to the local and U.S.-based multinationals.

On almost a daily basis, I talk to someone looking to do business in the Houston area with a particular interest in the energy value chain from upstream to midstream to downstream operations and related services and products. As such, the demand for cross-border business services and products continues to rebound. I am bullish on Texas and expect the Houston area demand to continue to grow even more as the oil markets turn around later this year.

In comparison to the oil downturn in the 1980s, Houston and the surrounding areas are much more diversified in terms of people, culture, and tastes and preferences. There is a lot of opportunity out there, and the challenge is to find the value in the business taking place. For example, in the oil and gas sector, we have seen the jobs and investment move from west Texas to east Texas. Why do I say this? Business is booming in the eastern part of the state with construction and development of chemical industry projects which grow when the oil prices go down.

AM: How are companies from energy to real estate doing given the current climate?

Mr. Garcia: Houston will weather this storm. Overall, I think the U.S. economy needs to do better because we’ve had lower oil prices for the past two years, thus, it seems that there are still lingering effects from the 2008 downturn and attempts to restart it have not been very effective.

By far, energy has been the hardest hit; however, real estate and construction don’t seem to be slowing down. Texas is a business-friendly state that drives the economy in a variety of ways. Nevertheless, a lot of companies are cutting budgets and costs and strengthening their balance sheets either voluntarily or involuntarily. Extra attention is placed on budgeting and planning to minimize surprises and risks.

Furthermore, they are looking for opportunities that will create real value for them. For example, private equity funds are abundant right now—there is a lot of cash sitting on the sidelines waiting to be deployed. As soon as the oil markets stabilize, the focus of more Houston-based businesses will directed toward México’s new energy policies. I foresee stronger demand for oil and gas knowledge and expertise coming out of Houston.

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AM: As an advisor, what do you recommend to foreign investors or companies interested in doing business in Texas or the U.S? What planning considerations need to take place before embarking on new horizons?

Mr. Garcia: It’s inevitable that people and companies will take on risk or make investment decisions even when they don’t know the market entirely because too much market analysis can freeze the best of business plans. Nonetheless, I would always recommend that they at least look at the landscape they plan to conquer and, in particular, consider how personal and business and tax regulations work. I also recommend that they obtain and understand the various forms of doing business and the related implications.

Most importantly, I suggest that they invest time in forming alliances with local partners, if possible. In my experience, the firms that build strong relationships are able to reap the biggest profits. They need to consider the available monetary and nonmonetary incentives to strengthen the viability of their investment.

AM: What are some common mistakes businesses make when entering the Houston market?

Mr. Garcia: Because food sales and distribution is a big industry in Houston, please allow me to illustrate the issues I see with an analogy.

Clients will often come to me because they failed to outline well in advance the ingredients needed to go in the soup. They often try to cook and serve the soup without having identified all of the ingredients needed for optimum results. I often help them identify the right mix of ingredients for the best results.

Mario E. Garcia is a certified public accountant and an international tax partner with Calvetti Ferguson.

He can be reached at mgarcia@calvettiferguson.com or via phone at (713) 726-5719.

About Calvetti Ferguson Calvetti Ferguson is a full-service public accounting and consulting firm that provides financial audit, tax, and corporate advisory services to public and private companies. It is ranked among the top 25 CPA firm in Houston, Texas. The firm’s primary focus is corporate clients in the middlemarket sector, i.e. companies under $2 billion in annual sales.

With offices in Houston, The Woodlands and San Antonio, the firm services clients in oil and gas, oilfield service, pipelines, engineering and construction, manufacturing, distribution and healthcare companies.

For example, investors and companies will do better when they have a strong balance sheet, when they are able to factor in the best legal entity structure in terms of financial, tax, labor and immigration concerns, etc. I like to work with clients in a holistic manner and often end up working with their internal and external advisors to establish a common platform for discussion and action items.

To help them have a smooth landing, we equip our clients with a list of established contacts, including clients, bankers, attorneys, and relevant relationships that may prove helpful to their success. One of the most important recommendations we make to them is that they get to know the advisors well, and find out what additional benefits their relationships may offer to maximize the chances of success for their businesses. I find that many can do better simply by recognizing there is a difference in business culture.

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UNITED WITH TECHNOLOGY WITHOUT BORDERS HITEC MEXICO

creates a bridge between technology executives fostering closer ties, increased sharing of information and leadership development

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Andre Arbelaez, President of the Hispanic IT Executive Council & SVP and Chief Strategy Officer at Softtek USA.

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Every company is now a technology company.

If countries want to compete in the global economy, they need to become technologydriven by endorsing national initiatives throughout their education systems and encouraging innovation via established technology and startup firms.

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The Hispanic IT Executive Council (HITEC) is the premier professional organization for Hispanic IT executives in the United States. Its membership includes chief information officers (CIOs) of companies such as Facebook, Inc.; AT&T Inc.; Hewlett Packard Enterprise; Cisco Systems, Inc.; Comcast Corporation; DHL Global Forwarding; The Hershey Company; Bank of America; The Coca-Cola Company; and many more.

Tim Campos, CIO, Facebook.

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HITEC MEXICO LAUNCHED IN 2015 ate last year, the organization announced the launch of HITEC Mexico, a new chapter of the group and a bridge between technology executives from the two countries, leveraging the total trade of $531 billion in 2015, according to the U.S. Census Bureau. HITEC Mexico will provide its members with the opportunity to advance their businesses by developing focused and informed leaders and role models.

“The idea behind HITEC Mexico was to create a platform for technology executives from both countries to share and build upon ideas and develop stronger technology leadership teams,” said Andre Arbelaez, president of HITEC and senior vice president and chief strategy officer at Soft-

tek, a global provider of IT services and business process solutions. “HITEC Mexico will give its members opportunities to share and learn about evolving trends in the technology industry and leadership while positioning themselves as leaders in the sector and in their own companies.”

HITEC Mexico was launched on September 8, 2015 at a widely-attended reception.

Coming together to host the event were some of the leading companies in the Mexican IT industry including AT&T Inc., Hewlett Packard Enterprise; PricewaterhouseCoopers (PwC), LinkAmerica and Softtek. Also among the hosts was MexicoIT, an industry association of leading IT companies in Mexico supported by the Mexican Ministry of Economy.

“We are pleased to be a host of the HITEC Mexico launch and to be part of this im-

pactful organization,” said Thaddeus Arroyo, CEO, AT&T Mexico and member of the HITEC board of directors. “By engaging with Mexican technology executives and bringing them together with their U.S. brethren, HITEC Mexico builds a strong bond between those leaders in an environment of shared information

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and professional and organizational growth. The result will be stronger, more prepared leaders on both sides of the border.” This is not the first time HITEC has reached outside the U.S. borders to found a new chapter. HITEC Spain, HITEC’s first non-U.S. chapter, was launched in April 2015.

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PROSOFT FOCUSES ON CONTINUED DEVELOPMENT OF MEXICO’S IT SECTOR

ince 2004, the Mexican government has had a national policy in effect for continuous improvement within the Mexican IT industry.

The program, Prosoft, is dedicated specifically to the continued development of the IT sector and has several main focuses: promotion, training, establishing a legal framework to promote the industry, development of the internal market, and promoting the construction of physical infrastructure and telecommunications.

Mexico’s software and IT service development sector comprises nearly 500,000 IT professionals and that number will continue to grow.

According to MexicoIT, the country’s brand and an industry promotional program operated by Mexico’s National Chamber of Electronics, Telecommunications and Information Technologies, more than 60,000 IT professionals are graduating from universities or technical schools each year.

Mexico has built a network of potential trade partners for the country’s companies through multilateral trade agreements that, in the case of North American Free Trade Agreement, are a strong legal

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framework. Subscribing countries are eligible for a number of preferential incentives such as trade tariffs, funding, training, and specific visas to facilitate the deployment of specific talent. U.S.-Mexico border cities tend to have large immigrant or repatriated communities whose language is primarily English.

Although Mexico is a free market economy and a favorable location for trade under NAFTA in large part due to a tax structure that provides a favorable working environment for both domestic and international firms, there re-

mains a continued perception of violence and corruption in the country which is a significant barrier to business growth.

Mexico’s intellectual property legal framework is still inefficient but the country continues to take steps to improve confidence among the business community and increase foreign investment. Such positive changes should curb Mexico’s issues with piracy and other thefts.

PHOTO 1 Andre Arbelaez, President of the Hispanic IT Executive Council & SVP and Chief Strategy Officer at Softtek USA.

PHOTO 2 Andre Arbelaez, president of the Hispanic IT Executive Council & SVP and chief strategy officer at Softtek USA; Thaddeus Arroyo, CEO of AT&T Mexico, LLC and HITEC board member; Alberto Yepez, chairman of the Hispanic IT Executive Council (HITEC) & managing director, Trident Capital.

PHOTO 3 Tony Scott, chief information officer of the United States.

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MEXICO’S IT INDUSTRY CONTINUES TO GROW DESPITE THE DOWNTURN IN OTHER LATIN AMERICAN COUNTRIES arger cities in Mexico, saturated with IT development, have nearly exhausted their skilled IT resources— especially those with advanced technical skills and strong English proficiency. Service providers, as well as clients looking to open or grow captive centers, have moved into Tier 2 and 3 cities in a quest for IT talent.

PHOTO 5 (Left to right, front to back) Haden Land, former vice president of engineering and chief technology officer, Lockheed Martin Information Systems & Global Services; Tim Campos, CIO, Facebook; Christopher Bream, global head of Information Security, Policy and Risk, Facebook; Bob West, managing director, CareWorks Tech; Rosa-Ramos Kwok, chief technology officer, Global Wholesale and Banking Infrastructure, Bank of America; Carlos Amesquita, chief information officer, The Hershey’s Company; Ileana Rivera, senior director of IT, Computing and Client Productivity Services, Cisco; Andre Arbelaez, president of the Hispanic IT Executive; Council & SVP and chief strategy officer at Softtek USA; Myrna Soto, corporate senior vice president & global chief security officer, Comcast Corporation; Dr. Yonesy Feliciano Núñez, senior vice president and information security leader - Wholesale (WTS / Capital Finance) & International, Wells Fargo; Congressman Joaquin Castro, U.S. House of Representatives, Texas 20th District

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Although markets in Latin America and elsewhere are slowing, Mexico is set to buck the trend.

Mexico’s economy will continue to record positive growth in 2016.

As it does, the IT outsourcing industry is helping to spur overall economic growth. Within the industry though, significant changes are taking place, necessitating clear understanding of emerging technology industries and markets in Mexico.

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PHOTO 4 Left to right: Jorge Titinger, president and CEO, SGI; Jorge Salinger, vice president, Access Architecture, Comcast; Carlos Fuentes, vice president of Strategy, Architecture and Security, Federal Reserve of New York; Carlos Hernandez, partner, Avasant.

HITEC’S KEY PARTNERSHIP WITH MexicoIT HAS SHOWN: • Mexico’s IT outsourcing industry is expected to continue on a strong growth trajectory; • Despite negative portrayals of Mexico by international media outlets and a particular politician, international business leaders favor the country because of its strategic geographic location, large tech talent pool, and track record of sound macroeconomic management; • The classical logic of nearshore investment—proximity, time-zone alignment, business cultural affinity—is strengthening in light of technological change and shifting geo-economic realities. This bolsters the case for Mexico vis-à-vis offshore markets; • Currency weakness since 2014 has been a blessing in disguise for many vendors; and • Mexico’s strength as a software development and business process destination, as well as growth trends within Mexico’s largest markets, are growing.

The data clearly shows that the strong relationship between the United States and Mexico is based upon the trust relationship among executives. Within HITEC, these connections are formed at the highest levels in a safe environment enabling members to share their company’s experiences and challenges. The organization’s members also assume responsibility for mentoring the next generation of IT executives and influencing schools on both sides of the borders to adopt or increase STEM curricula (science, technology, engineering and mathematics) to drive the future workforce in both countries.

As the comfort level of U.S.-based companies improves and they are now sourcing multi-million dollar contracts to Mexican IT companies, there is great pride in the fact that U.S. business people recognize the numerous benefits of working with Mexico and its people.

To learn more about HITEC, visit the website, www.hitecglobal.org.

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PHOTO 1 Real Estate.

PHOTO 2 Renewable Energy.

Northeast Chapter New York, NY 2016 1st Quarter Events January 28

Mexico: Economic & Political Outlook We held a dynamic panel discussion regarding the evolution and forecast for the Mexican economy as well as how reforms affected the markets and the challenges and risk factors that lay ahead. Our expert analyst group gave their opinions from both independent economic and political perspectives regarding the process and outcomes they believe the reforms have had on Mexico.

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February 18

U.S.-Mexico Real Estate Investment Summit 2016 We hosted our third annual U.S.-Mexico Real Estate Investment Summit in February.

Recognized specialists from Mexico and the U.S. delivered a comprehensive analysis of the real estate market in Mexico, the current situation, outlook and its relations with the United States.

The audience learned about business opportunities in real estate in Mexico open for U.S. and international industry players, as well as trends and innovations in investing and financing real estate in Mexico.

This prime networking summit was attended by individuals currently participating in or interested in the Mexican real estate market, including real estate specialists, institutional investors, bankers and developers from Mexico and the United States.

February 29

Business Opportunities in the Mexican Biotech Industry This event, held in Boston, explored the Mexican healthcare system. We reviewed its structure, regulators, public and private service providers, and procurement. There was an overview of recent developments and the regulatory framework for the pharmaceutical, biotech and life science sectors in Mexico, as well as discussion on the clinical research for the biotech industry in Mexico, the medical perspective on current trends in biotechnology and pharmaceutics. There was also information about ways to address the marketplace challenges driven by the biotechnology innovation, and reviews of success stories and business cases.

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March 1

Investing & Financing on Mexican Renewable Energy This interesting discussion regarding the energy sector reform and the new energy transition law in Mexico was a great success. We reviewed the advances in the implementation of the energy reform, considerations for the renewable energy sector, and structuring and financing renewable energy projects.

March 2

Spain & LatAm Networking Cocktail Event Our fifteenth annual networking cocktail get-together partnering with other chambers and organizations was a great success.

This event brought more than 150 guests together from different companies in New York City.

March 4

Mexico & the Philippines: Private Business Roundtable We held a private business roundtable to discuss the business relations between Mexico and the Philippines—two strong and dynamic nations with solid economies and a great potential for the future.

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Southwest Chapter Dallas, TX

hosts delegation from San Luis Potosi

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he United States-Mexico Chamber of Commerce Southwest Chapter and La Oficina de Enlace (liaison office) joined forces to host a delegation from San Luis Potosi, Mexico that visited the Dallas-Fort Worth, Texas area on March 8-9, 2016.

Through the combined efforts chapter member Mario Ramirez, a native of San Luis Potosi and director of La Oficina de Enlace, the two organizations were able to meet the objectives of the delegation.

General Arturo Gutierrez Garcia, secretary of public safety for San Luis Potosi, was on an historic diplomatic mission to

PHOTO 1 The delegation posed for photographs in the Dallas City Hall International Flag Room.

911 supervisor Salazar, assistant chief of the City of Dallas Fire Department; Jesse S. Reyes; Arnulfo Urbiola, director of Planning and Operations, Min. Pub. Security. SLP.MX; Josie F. Orosco Executive Director of SW Chapter; General Arturo Gutierrez, Secretary of Public Security for San Luis Potosi, Mexico; Mario Cesar Ramirez, Director of San Luis Potosi Oficina de Enlace in Dallas and Major Page, Dallas Police Dept.

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it involved meeting with public safety officials and evaluating their systems and procedures.

Also assisted by Consul General Octavio Tripp of Mexico in Dallas, Gutierrez and his team met with Dallas County Sheriff Guadalupe Valdez, visited the Fort Worth Police Training

Academy, and met with Fort Worth Police Chief Joel Fitzgerald to promote collaborative training exchanges.

In the academic arena, Gutierrez met with two local academics: Joshua Rovner, Ph.D., John G. Tower Distinguished Chair of International Politics and National Security and director of studies at the Tower Center for Political Studies at Southern Methodist University in Dallas, Texas; and Gopal Gupta, Ph.D., professor and associate department head in the computer science department at University of Texas Dallas to discuss academic collaboration for increased cyber security.

The general also visited with Cynthia Villegas, assistant chief of police for the City of Dallas; Gary Tittle, homeland security chief; Daniel Salazar, assistant

Prior to his departure, Gutierrez also held a meeting with the local consul general and Dallas residents from San Luis Potosi to share his

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explore areas of collaboration between the U.S.’s and Mexico’s government institutions, trade, academics and security. One of Gutierrez’s roles is overseeing the vendor selection process for security products, services, equipment and uniform purchases in San Luis Potosi so a large part of his vis-

chief of the City of Dallas Fire Department; and the Dallas 911 Call Center to observe techniques to improve San Luis Potosi’s control center, command, communications and computation.

background and information about the status of the state, and to listen to the concerns of the Mexican natives.

The chapter expressed gratitude to the many individuals who provided assistance in making the delegation’s visit to Texas successful and a great promotion for better relations with Mexico.

PHOTO 2 SMU - Southern Methodist University. Arnulfo Urbiola, Director of Planning and Operations, Min. Pub. Security.

SLP.MX; Joshua Rovner, SMU International Politics and National Security; Josie F. Orosco, US Mexico Chamber, SW Chapter; General Arturo Gutierrez, Sec. of Public Security for SLP, MX; Mario Cesar Ramirez, Director of Oficina de Enlace for SLP, MX in Dallas; Luis De La Cerda, SLP delegate.

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California Chapter Los Angeles, CA

opment Center Los Angeles; Liliana Cino, consul general of Peru in Los Angeles; Eric Eide, director of the International Trade Office of Mayor Garcetti of Los Angeles; Jim Mayfair, director of the U.S. Department of Commerce.

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L PHOTO 1 Liliana Cino, Consul General of Peru.

PHOTO 2 Indonesia Trade Promotion Center.

PHOTO 3 Gilberto Luna Moisés, Cónsul Adscrito.

os Angeles is a gateway for trade and one of the largest economies in the world. The California Chapter organizes an annual event called Celebration of the International Trade Community in Los Angeles where we invite representatives from countries all over the world to come and promote their exports and learn about exports from other countries.

The Eighth Annual Celebration of the International Trade Community in Los Angeles was held on February 26, 2016 in collaboration with the Consulate of Mexico in Los Angeles.

Among the approximately 300 guests were many distinguished speakers such as Gilberto Luna, deputy consul general; Carlos Giménez, consul for Economic Affairs Mexican Consulate; Jim MacLellan, director of Trade Development, Port of Los Angeles; Betty Young, director of the Hong Kong Trade Devel-

Also attending were Silvia Ugalde, consul general of Costa Rica; Pavol Sepelak, consul of the Czech Republic; Celeste Giménez Peña, consul general of the Dominican Republic; Diego Roberto Jaramillo, consul general of Ecuador; Mame Toucouleur, consul general of Senegal; and Lamia Hamadamekhmar, consul general of Egypt.

Additionally, more than 40 companies and organizations hosted booths for participants to meet and speak with representatives in person.

Among those were Santa Marina y Steta; AFEX; Hong Kong Association of Southern Califonia; BIZFED; HKDTC; Port of Los Angeles; Guatemala Trade Office; CHCC; Alaska Airlines; PROMEXICO; Jetro; Mexico

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Tourism Board; BenchMark Email Marketing; the Dominican Republic; Aeromexico; Prochile; GMG Media Group (Armenia); Tequila Campo Azul; Los Angeles World Airports; Vallarta’s VIP Travel; Tenacity; De La Costa; Alba, Monte Xanic, etc.

This event reflects the unity the different countries have in California and the importance and relevance of being part of this important gateway to the world.

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Northwest Chapter Seattle, WA January 28, 2016 PHOTO 1 Luis Morris (right) presents Byron Daily of DLP Piper with a plaque recognizing the company’s support as a sponsor of the Northwest Chapter’s events.

Chapter Annual Board Meeting The U.S.-Mexico Chamber of Commerce Northwest Chapter held its Annual Board Meeting on January 28, 2016 in Seattle, Washington.

Luis Morris, was elected chapter president for a second term. He thanked members for their support and repeated his commitment and interest in continuing as president of the Northwest Chapter for another two years.

PHOTO 2 David Spencer, chapter board member; Duane Dunk; Fernando Paz Pous, deputy director, ProMexico; Gary Sears, chapter board member; Gabriela Michan, chapter secretary and deputy director, TechBA Seattle; Hon. Eduardo Baca-Cuenca, consul of Mexico in Seattle; Luis Morris, chapter president; Luis Navarro, director of social responsibility, Port of Seattle; Eduardo Alarcon, chapter board member; John Díaz, chapter vice president; Byron Dailey, DLA Piper; and Antonio Esqueda, assistant provost, City University.

In addition to electing officers, the meeting provided a chance for members to discuss important topics such as trade between Mexico and Washington, business opportunities, and prospective new chapter members.

During the meeting, Morris noted changes in the chapter’s executive committee. The new executive committee is comprised of:

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Attendees at the Annual Board Meeting of the Northwest Chapter of the USMCOC • Luis Morris - Chapter president • Hon. Eduardo Baca-Cuenca - Consul of Mexico in Seattle • John Díaz - Chapter vice president • Gabriela Michan - Deputy director at TechBA Seattle and chapter member • Luis Navarro - Director of Social Respon sibiity for the Port of Seattle, and chapter past president • David Spencer - Chapter past president and current board member

• President: Luis Morris • Vice President: John Díaz • Secretary: Gabriela Michan • Treasurer: Armando Medina

• Byron Dailey - DLA Piper LLC

Morris recognized Byron Dailey for the support of DLA Piper LLC to the chapter and Eduardo Alarcón for his term as secretary for the past two years.

• Fernando Paz Pous - Deputy director at ProMexico

• Antonio Esqueda - Assistan provost at City University, • Gary Sears - Chapter board member

• Eduardo Alarcon - Chapter board member • Duane Dunk

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Inter-American Chapter Miami, FL

February 5, 2016

Breakfast with Ambassador Basáñez On the morning of February 5, 2016, the Chapter hosted a breakfast briefing for the Mexican Ambassador to the U.S., Miguel Basáñez at the Broad and Cassel Attorneys at Law offices in Miami.

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December 2, 2015

Reception for Consul Sabines The Inter-American Chapter hosted a welcoming reception for Consul Juan Sabines Guerrero on December 2, 2015 at the Broad and Cassel Attorneys at Law offices in Orlando, Florida. The event was well-attended with representatives from the public and private sectors in the Orlando and Tampa areas.

Consul Sabines shared the goals he intends to achieve during his tenure in Orlando.

He commented on the long and fruitful personal relationship he has had with the Chamber, first as governor of Chiapas and now as consul of Mexico in Orlando. He encouraged those present to get involved with the Chamber in order to offer more Chamber events and grow its outreach in the greater Orlando area.

Attending were Miami area binational members, Jose Antonio Zabalgoitia, consul general of Miami; other consular staff; representatives of the Asociacion de Empresarios Mexicanos; and Al Zapanta, president and CEO of the Chamber.

PHOTO 1 Consul Juan Sabines with consulate representatives and Nayef Mubarak, immigration attorney at NeJame Law.

PHOTO 2 Left to right: Ruth Martinez, executive director, Interamerican Chapter; Consul of Mexico in Orlando, Juan Sabines; Gabriela Martinez de la Portilla; and David Rosemberg chapter president.

The briefing began by providing attendees the opportunity to comment on their relationships with Mexico and voice any specific concerns or challenges they were facing while doing business with Mexico.

After hearing the concerns, Ambassador Basáñez stressed the importance of the trade relationship between the two countries, described the historical evolution of Mexico that has brought it to its current status, and the three goals he has identified for himself during his tenure.

Ambassador Basanez was on a 10-city tour of U.S. cities where he met with business people to listen to their needs and expectations in reference to trade relations with Mexico.

PHOTO 3 Carlos Rincón Gallardo, INNOVA; Consul Zabalgoitia; Al Zapanta Ambassador Basanez; David Rosemberg; Pablo Salazar Sebring, AEM; Dianne Weber, Littler; Ruth Martinez; Anthony Velasquez, Andrews Intl; Jose Barquin, tourism director, Miami; DC Page, Andrews Intl; Mosies Peraza, PROMEXICO; Carlos Loumiet, attorney, Broad and Cassel; and Julio Barrionuevo, Fed-Ex.

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Houston-The Woodlands- Gulf Coast Chapter

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PHOTO 1 Participants of Leaders and Executives Accelerated Program at St. Thomas University.

PHOTO 2 Fernando Sanchez-Arias, VicePresident of the USMCOC, Corporate Director & CLO of LUKIVEN Global Energy & Business Group; Ana Maria Simmons, Sales Manager United Airlines; Pete Garcia, Director of Houston – The Woodlands Chapter; Julie Charros, President of Houston – The Woodlands Chapter; Monica Gonzalez S., Consul of Economic Affairs and Commercial Promotion; Oscar Rodriguez General Consul of Mexico in Houston; Mario Garcia, Partner at Calvetti Ferguson.

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ouston - The Woodlands - Gulf Coast Chapter of the U.S.-Mexico Chamber of Commerce has kicked off 2016 with several network events for members and guests.

February 4, 2016

March 3, 2016

March 9, 2016

The chapter held its first Networking for Opportunities event at Fogo de Chao in The Woodlands. A total of 80 people were able to exchange business cards and refer business to one another in a beautiful setting in Hughes Landing’s Restaurant Row.

Our chapter co-hosted a networking event with the World Chamber of Commerce at Chauma Gaucho in Houston with more than 100 people attending.

Was the second Networking for Opportunities event hosted by board member Luis Morton at Morton Auctioneers & Appraisers. In addition to the conversation and mingling, the 30 attendees were also able to see the company’s showroom.

March 10, 2016

Mark your Calendars for Fiestas Patrias Gala

The chapter sponsored the first its Leadership Effectiveness Accelerated Process™ (L.E.A.P.™) session. L.E.A.P. provides customized training to accelerate the development of an organization’s leaders. The chapter has partnered with valued member, the University of St. Thomas Houston, to present the nine-module series. Each module is focused on a different aspect of international intelligence. The initial meeting centered on the topic of cultural intelligence in international business.

The chapter will host the Fiestas Patrias Gala on September 10, 2016. The black tie event is expected to draw a crowd of 500 people. For more information on sponsorship opportunities, contact Pete Garcia at petegarcia@usmcocgc.org or by phone at (713) 854-1577.

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Guanajuato Chapter León, Gto.

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he U.S. Mexico Chamber of Commerce Chapter Guanajuato closed 2015 with flurry of activities in the Bajio region focused on trade and sustainability.

February 17, 2016

Inaugural Breakfast Conference

1

November - December, 2015

Water Footprint Seminar

The Guanajuato Chapter held its inaugural breakfast conference entitled, “Creating Competitiveness in Companies.” The presenters were Luz Maria Karg, director of the American Society of Quality for Latin America, who spoke about the future quality issue; Carlos Gonzalez, director of Evoryt®, whose remarks focused on value creation projects in companies; and Ivan Rivas, director of the Mexico Competitiveness Center who spoke on the topic of the person as a center of competitiveness.

PHOTO 1 Gloria Muñoz Bajio, Cleaner Production Center specialst.

During November and December, the chapter hosted a seminar entitled “Water Footprint,” presented by the Bajio Cleaner Production Center and coordinated by the state water commission of Guanajuato. Sessions were held in the cities of Leon, Guanajuato and Irapuato. Around 200 people involved with water issues located within the Lerma-Chapala basin attended.

January - October, 2015

National Exports Increase The economic portfolio in Mexico had a favorable performance during the period January through October 2015. Exports accounted for $218 million, an increase of 1.5 percent compared to the same period the prior year. Specifically, in Guanajuato, exports reported $17.8 billion representing a growth of 6.4 percent and absolute growth of $1.073 billion, compared to the same period the prior year.

March 4, 2016

Energy Efficiency Workshop Representatives from twenty companies attended a workshop on energy efficiency with a focus on social responsibility.

The 60+ hour workshop was presented

by Cleaner Production Center. The course was primarily funded by Leon’s Department of Economics and Guanajuato’s Ministry of Economic Development.

PHOTO 2 Ivan Rivas during his conference.

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Michoacán Chapter Morelia, Mich.

February 15, 2016

New Board of Canacintra Morelia

PHOTO 1 Newly-elected chapter president Morelia Manuel Tinoco, former chapter president Clovis Remusat, displaying the plaque that commemorates the inauguration of the presidents hall.

PHOTO 2 Chapter president Nicandro Ortiz with Jorge Ortega, partner at Ortega Sanchez-Mejía, S.C., prior to the meeting in Morelia with the mayors of the México World Heritage Cities.

The chapter held elections at the Canacintra Morelia headquarters to select its new board members. Manuel Tinoco, a public accountant and factory owner, is the new president. The outgoing president, Clovis Remusat, presided over the meeting.

Chapter president, Nicandro Ortiz, was reelected as a board member of the association that gathers and represents the local factory owners.

December 16, 2015

Governor Silvano Aureoles inaugurates Fructoza Agropark Silvano Aureoles, governor of Michoacán, inaugurated the newest agropark complex designed for growing organic berries. Almost $23 million was invested in the first stage of the greenhouse agricultural facility. Chapter board member, Juan José Hernández de Lira, was involved in the project as a business development consultant and project director.

The state of Michoacán is the main producer of berries and avocadoes in Mexico. José Luis Medina, chapter board member, leader of the lime and lemon association, exporters of Michoacán, commented that the state is the third largest producer of organic berries, and, due to the new agropark, has an ability to supply the product year round due to the milder climate of the region.

February, 2016

Gov. Aureoles visits Chicago and LA on an informationgathering tour At the end of February, Michoacán governor Silvano Aureoles Conejo traveled to Chicago, Illinois and Los Angeles, California, to meet with community and business leaders and government officials to discuss potential areas of cooperation and collaboration between the cities and state of Michoacán.

The governor was especially interested in hearing ideas and suggestions about the needs and opportunities of the large population of Mexicans, especially of Michoacános who reside in California and Illinois.

Meetings with our chapter members are being scheduled to capitalize on these initiatives.

March 4, 2016

Meeting with Mayors of Mexico’s world heritage cities Chapter members met with mayors of the world heritage cities of México in Morelia. The meeting was organized Jorge Ortega, chamber member and partner in the firm Ortega, Sanchez-Mejia S.C. Alfonso Martinez, mayor of Morelia, hosted the event.

Chapter president Nicandro Ortiz met with Ortega to identify opportunities to further develop the state and cities.

A follow up meeting was scheduled for the coming weeks, as well as trips to visit the municipalities are on the agenda.

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Monterrey Chapter Monterrey, NL Automotive Industry Event in Monterrey

coordinated by Richard Roche, president of the Supply Chain Collaboration Council and member of the board of directors of the U.S.-Mexico Chamber of Commerce.

The event was held February 23 at the impressive Safi Valle Hotel in the upscale Monterrey suburb of San Pedro Garza Garcia, just minutes from downtown, and was kicked off with a reception at the same venue the previous evening.

PHOTO 1 USMCOC president and CEO, Al Zapanta (at the podium) and Joe Chapa, vice president of the binational chamber (seated at the presenters’ table) welcome guests at the start of the conference.

PHOTO 2 Richard Roche of Roche International coordinated content for the event and moderated one of the panels.

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he Noreste Chapter in Monterrey was the site of a recent conference for the automotive industry entitled “Supply Chain Challenges and Opportunities in Mexico.” With almost 100 participants in attendance, expert panelists from several industry leaders such as Caterpillar Inc and John Deere and Company, joined U.S. and Mexican customs representatives in outlining current and future issues in automotive supply chain logistics, especially as they relate to product movement between the two countries, which continues to increase at a fast pace.

While the logistics and attendance for the event were organized and planned by the chamber, the content was designed and

Fernando Elizondo, senior official working with Jaime Rodriguez, governor of the state of Nuevo Leon, was the guest of honor at the reception. Other noteworthy guests included U.S. Consul General Timothy Zuñiga-Brown, and Dr. Jesus Ancer, former chancellor at the Autonomous University of Nuevo Leon and now director of its affiliated Institute for Research and Development in Health Sciences.

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

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are of utmost importance and interest, especially in this particular market, and should continue to be addressed in future events. In fact, several people called for a plan to undertake follow-up conferences on supply chain logistics before the end of the year.

PHOTO 3 Panel presentations included participants from Caterpillar, John Deere, Landstar, Mazda and Blackhawk, among others.

Hosting and representing the U.S.-Mexico Chamber of Commerce were its president and CEO, Al Zapanta; vice president Joe Chapa; Dr. Eric Gustafson, Monterrey chapter president; and Roberto Fuerte, executive director of the Monterrey Chapter.

The conference keynote speaker was Nuevo Leon’s secretary for economic development, Hon. Fernando Turner.

Secretary Turner spoke about the state’s development plan and perspectives on current and future growth and employment, especially in key areas and sectors of focus, such as automotive.

It was evident from comments made during the event by both speakers and participants, that issues in supply chain

4

The chamber and Richard Roche were thanked for taking the event to Monterrey and for its success. Others who were instrumental in contributing to this success were sponsors Caterpillar Inc. and ALFRA and OCA Consulting, along with chamber friends and advisors, Alex Villarreal, Maria Jose Trevino and Francisco Ocejo.

PHOTO 4 Reception prior to the Conference, Jorge Ovalle, University of Nuevo Leon; Al Zapanta; Dr. Jesus Ancer, University of Nuevo Leon; and Hon. Fernando Elizondo, Nuevo Leon State Government.

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By Angel Gurría, Secretary General, Organization for Economic Cooperation and Development

INSIGHTS AND OUTLOOK ON THE GLOBAL ECONOMY, TRADE OPPORTUNITIES AND CHALLENGES

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It has been eight years since the onset of the economic crisis and global growth still remains elusive. The Organization for Economic Cooperation and Development’s (OECD) latest interim economic outlook projects that global GDP will expand by only three percent in 2016—its slowest pace in five years—and only slightly higher at 3.3 percent in 2017.1 The global economy is stuck below its long-run average of 3.75 percent.

In advanced economies, growth remains below what one would expect during a recovery phase, and labor markets continue to be marked by sluggish job creation and wage growth.

Moreover, growth in several emerging market economies has also decelerated. Growth in China has slowed, with negative implications for global trade, investment and commodity prices. The recession in Brazil is deeper than previously anticipated and is associated with ongoing political uncertainty and rising inflation.

World trade volumes grew by around two percent in 2015, a pace which, in the past, has been linked to weak global economic performance. In this context, global macroeconomic policy, comprising monetary, fiscal and structural actions, must become more supportive of demand and resource reallocation. Monetary policy alone has been insufficient to deliver satisfactory growth, so greater use of sound fiscal and structural strategies is required.

OECD’s Policy Framework for Investment

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ow is the time for collective fiscal action focused on investment spending to improve growth in the near term and increase long-term output potential. Going hand-in-hand with this is the need for more ambitious structural reforms to provide an environment conducive to private investment. At its last Ministerial Council Meeting in June 2015, the OECD delivered its updated Policy Framework for Investment (PFI), a comprehensive and systematic approach to improving in-

vestment conditions used across all continents by almost 30 countries at varying levels of development.

One of the areas that the PFI focuses upon is responsible business conduct (RBC) and providing policy advice to governments to better implement RBC through the promotion of best practices, working with all stakeholders, and establishing and enforcing legal frameworks that protect the public interest.

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Trade is key to growth

T

rade is another key area in need of urgent policy action. No country has achieved sustained growth and improved living standards without significant opening to trade and investment.

Global Value Chains (GVCs) have become a dominant feature of world trade, whereby the whole process of producing goods is carried out wherever the necessary skills and materials are available at a competitive cost and quality. Distributing production across borders highlights the need for countries to support open, predictable, and transparent trade and investment systems as tariffs and other restrictive measures impose unnecessary costs not only on foreign suppliers, but on domestic producers as well.

The OECD provides a broad range of information to help policymakers understand the effects of GVCs. For example, the trade in value-added (TiVA) indicators provide comprehensive statistical and analytical data on international production sharing. In addition, the Initiative on global value chains, production transformation and development facilitates policy dialogue and knowledge sharing between OECD and non-OECD countries to promote development by fostering participation and upgrading GVCs.

1 OECD

Interim Economic Outlook, February 2016, http:// www.oecd.org/economy/ economicoutlook.htm 2 OECD

(2015), “Implementation of the WTO Trade Facilitation Agreement: The Potential Impact on Trade Costs.”

3 OECD

(2009), “Overcoming Border Bottlenecks: The Costs and Benefits of Trade Facilitation,” OECD Trade Policy Studies, OECD Publishing.

In October 2015, OECD and the World Trade Organization (WTO) jointly presented a new report to G20 trade ministers that focuses on making GVCs more inclusive, notably by overcoming participation constraints for small and medium-size enterprises (SMEs), and by facilitating access for low income developing countries (LIDCs).

Multilateral action is also needed to ensure trade openness. In 2013, WTO members concluded the Trade Facilitation Agreement

(TFA) and, more recently, adopted new practices for export competition measures in agriculture. The challenge now is to find a flexible method to resolve the outstanding issues of most concern to businesses, from agriculture and non-agriculture market access to restrictions on services, investment and the digital economy. A growing number of WTO members are also turning to regional and multi-lateral approaches to address these twenty-first century policy challenges. The Trans-Pacific Partnership (TPP) recently became the first mega-initiative to be finalized.

In addition to negotiating market openness at the multi-lateral and regional levels, national efforts alone can stimulate trade and spur economic growth. For example, well-functioning transport, logistics, finance, communication and other services are needed to ensure a coordinated flow of goods and services along value chains.

The OECD Services Trade Restrictiveness Index (STRI) shows that significant restrictions on free movement of services exists in all countries, but also that no individual country is more or less restrictive than many others.

All countries have much to gain from opening services markets which, in G20 countries, represent over 60 percent of all economic activity.

Inefficient customs and other border procedures also impose unnecessary costs on trade. The OECD estimates that implementing the TFA would reduce trade costs for businesses by up to 17.5 percent in some countries.2 By way of example, a one percent reduction in global trade costs would increase worldwide income by more than $40 billion.3 These estimates also predict that poor and lower-middle income countries would gain the most.

As countries continue to grapple with the effects of the financial crisis, the potential contribution of greater trade and investment openness as an economic stimulus remains underexploited, yet it is clear that there is significant opportunity for both unilateral and collective government action to provide much needed stimulus.

The combination of structural policy reforms and well-balanced monetary and fiscal actions can go a long way toward lifting the world economy out of its low-growth standstill and on to a path of stronger, fairer and more balanced growth.

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MEXICO: KEEPING A STEADY ECONOMIC COURSE

By Luis Videgaray Caso, Mexico’s Minister of Finance and Public Credit

A number of forces buffeted the world economy during the first few weeks of 2016.

The precipitous fall in oil prices and other commodities that began last year has continued, wreaking havoc on many emerging economies that have benefited from a commodity super-cycle that improved their current economy and helped them finance often large fiscal deficits over the past decade.

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A

s that cycle comes to a close, and with the expectation of flat prices during the foreseeable future, some countries are facing the painful process of balancing their internal and external accounts.

dependent and credible monetary policy, a freely floating exchange rate, and strict banking supervision, as well as prudent fiscal and debt management, shield Mexico from external impacts and provide certainty to local and foreign investors.

In tandem with this, the prospect of rising interest rates in the United States is increasing the cost of financing government spending around the world, making it yet more difficult to achieve the necessary adjustments. Partly as a cause, but also as a consequence of the latter, fears that growth of the world economy are screeching to a halt have hit global financial markets, especially in China, leading investors to run to the exit as they move to safer markets.

Fiscal prudence has been coupled with other precautionary measures, such as the use of hedges against low oil prices and access to a flexible credit line from the International Monetary Fund. As a result, in 2015, public sector financing requirements declined by 0.5 percent of GDP, to close at 4.1 percent of GDP. Moreover, in a volatile context, financial variables have behaved in an orderly fashion and economic growth has accelerated to end the year at 2.5 percent or 3.2 percent, excluding the oil sector. For 2016, the Mexican legislature approved a further 0.5 percent reduction in the fiscal deficit, as a fraction of GDP.

Mexico has not been immune to the external turmoil. With its strong commitment to free trade, undeterred capital flows, and a fluid exchange rate market, the country has benefited from being an active player in the global economy but that openness has also exposed the economy to the effects of the current instability in global financial markets. The Mexican peso, the most widely-traded emerging-market currency in the world, has suffered the brunt of such instability due to its use by foreign investors to hedge against events in other, less liquid emerging markets.

Mexico’s strong fundamentals, however, have helped differentiate the country from other emerging economies. An in-

These strengths notwithstanding, in the current context, Mexican authorities have sent a strong signal that they will act promptly and comprehensively to prevent external events from eroding domestic economic variables. With this in mind, on February 17, 2016, the country’s independent central bank, Banco de México, and the finance ministry took coordinated steps to reassure investors of their commitment to maintaining a stable macroeconomic environment, announcing an array of fiscal, monetary, and exchange-rate policy measures to respond to the present situation.

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Three elements underpin the announcement:

1.

The fall in oil prices, through its impact on the country’s terms of trade, has been partly responsible for the peso’s depreciation. Although inflationary expectations are well anchored and inflation remains at historically low levels, persistent exchange rate volatility could eventually translate into domestic price increases.

2.

While oil hedges guarantee government revenues during 2016, the expectation of lower oil prices in 2017 calls for cuts in government spending now in order to achieve next year’s fiscal consolidation goals with greater ease.

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n response to these realities, Banco de México’s board approved a 50-basis point rate increase. The central bank stressed that this should not be interpreted as the beginning of a tightening cycle, adding that it will keep a watchful eye on the projections for inflation to guarantee that they are in line with its three percent inflation target.

Simultaneously, the Exchange Rate Commission (ERC) which is comprised of Banco de México and the Ministry of Finance, has announced that, whereas economic fundamentals will continue to determine the exchange rate, the ERC will cease its preannounced auction of U.S. currency which appeared to have been subject to speculation. Instead, if necessary, it will intervene in the market in a discretionary fashion, in order to address exceptional circumstances of low liquidity and preserve the orderly functioning of the market.

For its part, the Ministry of Finance has announced a 132-billion-peso (approximately $7.5 billion) reduction in fiscal outlays, equivalent to 0.7 percent of GDP, to

3.

PEMEX, Mexico’s state-owned oil enterprise, like other oil companies around the world, has seen its revenue decline; therefore, it must take advantage of the benefits afforded by the recent reform in the energy sector in order to increase its operational efficiency.

help maintain the fiscal targets for the year, avoiding an increase in public debt, as well as the need to raise taxes. It will also help facilitate further adjustments in 2017 should oil revenues remain low.

About three quarters of the cuts will come from an adjustment program to be presented to the board of PEMEX in the coming days. The remainder will consist primarily of cuts to current outlays; social spending, resources devoted to security, and key infrastructure projects, will be unaffected. Thus, the fiscal cuts’ impact on aggregate demand will be softened.

In the face of a volatile external environment, Mexico has reaffirmed its commitment to follow a steady economic course. Strong macroeconomic fundamentals—low inflation, responsible public accounts, sustainable debt levels—coupled with the far-reaching reform agenda approved under President Enrique Peña Nieto, will allow the country to endure current financial shocks from the outside while setting the foundation for sustained long-term economic growth.

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Latin America and the Caribbean Economic Outlook in 2016

By Alejandro Werner, Director, Western Hemisphere Department of the International Monetary Fund (IMF).

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t’s been a rough start to 2016 as evidenced by the recent bouts of financial volatility stemming from uncertainties related to the slowdown in China, lower commodity prices, and divergent monetary policy in advanced economies.

The global recovery continues to struggle to gain its footing with strains in some large emerging market economies weighing on growth prospects. For Latin America and the Caribbean, growth in 2016 is now expected to be negative for the second consecutive year—the first time since the debt crisis of 1982–83 which triggered the “lost decade” for the region (see table).

Table: Real GDP Growth in Latin America and the Caribbean.

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The regional recession, however, masks the fact that most countries continue to grow, albeit modestly. In particular, country-specific developments are being determined by the interplay between external shocks and domestic fundamentals. While countries with strong policy frameworks have been adjusting smoothly to external shocks, countries with weaker domestic fundamentals are experiencing significant downturns.

The sizeable decline in commodity prices (about 30 to 50 percent relative to its peak, depending on the country) has led to significant losses in export revenues, estimated at around $200 billion for the seven listed economies. However, the sizes of trade shocks relative to the sizes of these economies (less than one percent of GDP for Brazil, Argentina, and Mexico in 2015-2016) are not enough to explain the severity of contraction in some cases. Indeed, the negative growth projection is driven by four countries— Brazil, Venezuela, Argentina, and Ecuador—as the decline in commodity prices

in combination with macroeconomic imbalances and microeconomic distortions, has led to sharp declines in private investment (see chart).

Change in Private Investment from 2011 to 2015 (In percentage points GDP)

Source: IMF WEO Live.

Overall, over the medium term, growth is expected to remain tepid, highlighting the importance of resolving domestic challenges.

The regional outlook also hides important sub-regional differences. While South America is heavily affected by the decline in commodity prices, Mexico, Central America, and the Caribbean are beneficiaries of the strengthening U.S. economy and, in most cases, of the oil price decline.

SOUTH AMERICA: In Chile, Colombia, and Peru, a relatively orderly adjustment process continues, where a policy mix of large exchange rate depreciations, gradual fiscal consolidation, and accommodative monetary policies have staved off contraction. The foundations for growth remain in place, including sound policy frameworks, credible institutions, healthy financial markets, and favorable foreign borrowing costs.

expected fall in output of almost 18 percent over 2015-16, the third sharpest decline in the world. A lack of hard currency has led to scarcity of intermediate goods and to widespread shortages of essential goods—including food—exacting a tragic toll.

Prices continue to spiral out of control, and we expect inflation to rise to 720 percent this year, from a world-high inflation of about 275 percent in 2015.

In Brazil, a combination of macroeconomic fragilities stemming from slow domestic adjustment, a wide-reaching scandal involving government and corporate officials, and political problems, have paralyzed investment and dominated the economic outlook. Following a sharp contraction of 3.8 percent in 2015, output is expected to fall a further 3.5 percent in 2016—the largest total contraction since 1981–83. Unemployment has risen sharply, and inflation is in double digits. Political dysfunction continues to delay the adoption of a credible fiscal strategy to keep public debt on a sustainable path, which has prompted rating downgrades and increased financing costs.

In Argentina, the new government has started an important transition to correct macroeconomic imbalances and microeconomic distortions. Significant steps toward this transition have been taken by eliminating restrictions on the foreign exchange market, removing several constraints on international trade, announcing the main guidelines of the macroeconomic framework, and the partial removal of energy subsidies. The new approach has improved prospects for growth in the medium term, but the adjustment is likely to generate a mild recession in 2016.

In Venezuela, longstanding policy distortions and fiscal imbalances were already having a deleterious effect on the economy before the collapse in oil prices. These problems worsened as falling oil prices triggered an economic crisis, with an

In Ecuador, a smoother adjustment to falling oil prices is precluded by macroeconomic rigidities. With continued decline in oil prices and real exchange rate appreciation, we anticipate a recession this year.

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Mexico, Central America, and the Caribbean: Central America and the Dominican Republic have benefited from the oil price decline, a stronger U.S. growth, and higher remittances, but the recent softening of world coffee and banana prices could reduce this impulse. While tourism-based Caribbean countries also benefit from the low energy costs and recovery in the U.S., declining prices for oil, gold, and alumina have worsened the outlook for commodity-intensive countries in the Caribbean.

Mexico is expected to continue to recover at a moderate pace, supported by healthy private domestic demand and spillovers from a strong U.S. economy. The depreciation of the peso and lower electricity prices should boost manufacturing production and exports. In addition, domestic demand has been on an accelerating trend since the second half of 2015 and it is expected to remain robust throughout 2016. The decline in oil prices will have only a limited effect on public finances in 2016 as oil price risk has been hedged for that year, but the government has started to adjust its fiscal accounts to maintain a healthy balance in the long run, anticipating a long period of low oil prices. In addition, we expect that the positive effects of the significant structural reform agenda will continue to generate positive effects on investment, productivity, employment and growth.

Risks The increase in U.S. interest rates December 2015 had a limited impact on U.S. and Latin American asset prices, confirming that markets had largely priced in the decision. Remaining risks are related to the expected path of interest rates, where uncertainty or sudden revisions could cause the term premium to increase—a source of substantial spillovers to long-term interest rates in the region.

The region remains particularly vulnerable to a stronger-than-expected slowdown in China— a main trading partner for the region— and to further declines in commodity prices.

Given the current complicated external environment and the severe slowdown that the region is phasing, authorities need to redouble efforts to strengthen fundamentals, accelerate infrastructure investment and intensify the structural reform agenda.

For more information about the International Monetary Fund, visit www.imf.org.

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MEXICO’S RECIPE FOR GROWTH: MACROECONOMIC STABILITY, MARKET REFORM, AND FREER TRADE

By Michael C. Camúñez, President & CEO, ManattJones Global Strategies, LLC, and former U.S. Assistant Secretary of Commerce

Negative economic news emanating from Mexico since the start of the year overstates the challenges Mexico faces. Despite dramatically low oil prices, a depreciated peso, and unclear prospects for the Trans-Pacific Partnership trade agreement, the Mexican economy is growing, driven by fiscal restraint, recent reforms and a consistent policy of promoting deeper and more efficient trading relationships.

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conomic headlines about Mexico this year have emphasized rock bottom oil prices, a volatile and depreciating peso, and unclear prospects for the Trans-Pacific Partnership trade agreement (TPP). A sharp drop in oil prices did push the peso to record lows and slammed PEMEX’s bottom-line, triggering the dismissal of its CEO and $5.5 billion in spending cuts.

Despite this, the broader economy has weathered this storm pretty well. Estimated 2016 growth has been revised down and expected inflation revised up, but the economy is still projected to grow about 2.4 percent with 3.5 percent inflation—one of the best performances in Latin America and better than most advanced economies.

Source: INEGI, The Economist.

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Revenue Composition (%)

EXCHANGE RATE 2000 - 2015

Average previous decade 2016e

(PESOS / USD) 20

Non-oil revenue Oil revenue

17 14 11 8 2000

2002

2004

2006

2008

2010

2012

2014 2/16/2020

Source: Ministry of Finance.

Source: Bank of Mexico.

Economic headlines about Mexico this year have emphasized rock bottom oil prices, a volatile and depreciating peso, and unclear prospects for the Trans-Pacific Partnership trade agreement (TPP). A sharp drop in oil prices did push the peso to record lows and slammed PEMEX’s bottom-line, triggering the dismissal of its CEO and $5.5 billion in spending cuts. Despite this, the broader economy has weathered this storm pretty well. Estimated 2016 growth has been revised down and expected inflation revised up, but the economy is still projected to grow about 2.4 percent with 3.5 percent inflation—one of the best performances in Latin America and better than most advanced economies.

back below 18 per dollar from its record high of 19:1. Although the Mexican peso has suffered real devaluation, it has weathered the storm well compared to what we have seen recently in other leading emerging countries’ economies, both within the Americas and elsewhere.

The impact on the federal budget was also much less than might have been expected. The government built its 2016 budget on a much reduced petroleum price which, together with greater income tax revenues generated by the 2013 tax reform, reduced anticipated petroleum revenue to just 15 percent of total revenue, down from a 33 percent average over the previous decade.

Mexico further insulated government spending from oil price volatility by hedging the sale of about two thirds of its expected 2016 oil exports.

An additional 2.7 percent spending cut announced in early February 2016, coupled with President Peña Nieto’s promises not to raise taxes or create more debt, reinforced Mexico’s commitment to fiscal responsibility. Financial markets quickly responded to this reassuring macroeconomic message by pushing the peso price

Mexico’s relative strength is reinforced by a series of revolutionary reforms approved in 2013 affecting education, labor, banking, telecommunications, and especially energy which opened Mexico’s petroleum and electricity sectors to private foreign investment for the first time in over 50 years. Together, these reforms help explain double-digit increases in foreign direct investment in each of the past three years. Last year alone, investors poured $7.5 billion into Mexico, a 30 percent increase over 2014.

Oil prices also had a muted effect on Mexico’s external accounts since manufactured goods now account for over 80 percent of Mexican exports. This export profile is the consequence of a quarter century of pro-market reforms and a trade strategy built around 12 free trade agreements with 44 countries, with NAFTA at its core. Again, this sets Mexico apart from many of its competitors, most notably Brazil, which is paying a heavy price for its dependence on a commodity-driven export economy.

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Free Trade Partners 50

42

45

38 25 13 0

19

20

CHINA

USA

8 BRAZIL

COLOMBIA MEXICO*

Mexico has not rested on its past successes; rather, it continues to embrace free trade as a key strategy for continued growth. A cutting-edge trade agreement when it was enacted in 1994, NAFTA now needs updating to adapt its provisions to a twenty-first century environment.

Mexico aggressively sought and obtained entry into the TPP negotiations, collaborating extensively with the United States and Canada on a range of issues that, effectively, will result in a modernization of the NAFTA structure.

Twelve Pacific Rim countries signed the TPP on February 4, 2016, but polarization due to electoral politics in the United States has raised serious concerns about when—and if—the treaty will take effect.

While rooting for the TPP, Mexico has not placed all its free trade eggs in the TPP basket. It has instead coupled promotion of the TPP with other strategies to expand its trade globally and improve the quality of its trading relationship with the United States. Key among these are the Pacific Alliance trade agreement and the High Level Economic Dialogue (HLED) with the United States.

The Pacific Alliance is Latin America’s latest effort to promote regional economic integration based on free market principles. It incorporates the region’s leading market-friendly economies, the so-called “Pacific Pumas”—Chile, Peru, Colombia and Mexico.

Designed to be a twenty-first century trading arrangement, the Alliance goes well beyond eliminating tariffs. It focuses on promoting regional harmonization, building human capital, promoting innovation and entrepreneurship, creating an integrated stock exchange, and protecting the environment of its member countries, as well as aspiring to become a regional bridge to Asia.

Pivoting north, Mexico continues to collaborate closely with the United States, most recently under the auspices of the HLED, to promote regional growth, competitiveness, and global leadership through improved regulatory collaboration and border efficiency. This cooperation will also encourage human capital, entrepreneurship, and innovation. In addition to Mexico’s energy reforms, the HLED recently

called for the establishment of the United States-Mexico Energy Business Council to enhance binational ties in the energy industry. Finally, with a new administration in Canada that has already signaled a strong desire to rekindle ties with Mexico, the potential for a bona fide North American engagement may finally be at hand.

Mexico is far from perfect. The constraints on growth affected by factors such as a weak rule of law, continued challenges with transparency and impunity, and improved but still challenging security are real but the unpardonable political rhetoric in the United States presidential campaign—vilifying Mexico for stealing jobs, promoting insecurity and sending criminals north—belies the reality of what Mexico is and will become. A G-14 economy that is on an unstoppable trajectory to becoming a highly competitive economy in its own right and a strategic partner of the United States, Mexico has chartered a smart path for growth that shows little sign of slowing down. Critics in the United States would do well to take note.

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Drilling Services

ANALYSIS / ANĂ LISIS

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CYBER SECURING CROSS-BORDER TRADING PARTNERS

By Jesus PeĂąa and D.C. Page of Andrews International, Inc.

I

t could be argued that nothing has done more to impact globalization than the Internet but that growth is not without significant risk. As trading partners exchange information along the super-highway, they are vulnerable to cyber threats due to their growing reliance

on inter-connectivity on both trusted and untrustworthy systems. Unfortunately, too many businesses focus on hardening their own perimeters and fail to obtain assurances that their partners have adequate safeguards.

The Binational Business Magazine

ANALYSIS / ANĂ LISIS

p.55

Globalization risks

W

Internet impact on globalization

T

oday, the Web is transforming commerce. New technologies continually hit the market that make it simpler and cheaper for companies and customers to transact business, and for streamlined business-to-business trade operations.

Virtually all industries have benefited from advances in Internet technologies that speed up the delivery of data packets and enhance security.

Without question, the Internet powers the economic, cultural and political components of globalization.

ith robust Internet connectivity resulting from increased demand, the Internet-connected world is a vast hunting ground for cyber criminals of all skill levels. The ease of access to malicious software allows anyone with even a little know-how to easily download and use the tools in mischievous or criminal ways.

The prevalence of hacking tools means security threats come in many forms, from innumerable sources, and pose a threat to assets such as intellectual property, trade secrets, bank accounts, financial data and so on. In other words, every item of information stored on a computer connected to the Internet.

In addition, the Internet of Things (IoT), the growing network of machine-to-machine communication built on cloud computing and networks of sensors that collect and exchange data, will impact consumers and businesses and extend their vulnerabilities even more.

Securing the cyber connections

B

usinesses recognize the importance of securing their data and are working to broaden awareness of the issue throughout their organizations through employee training programs designed to educate personnel about online areas of attack and phishing. Information technology policies and procedures are being updated to reflect the burgeoning types of cyber-attacks and insider threats.

As businesses tighten security to protect against new threats, questions about cross-border partners and service providers surface: Does the partner have the minimum controls in place?

Does the partner operate in an information security culture?

Are applicable laws and/or industry regulations in the partner’s country taken into consideration?

If personal, identifiable information is to be shared, is reasonable due diligence conducted to determine the partner’s ability to meet privacy requirements?

Are partners required to maintain written security policies and procedures?

Alliance

ANALYSIS / ANÁLISIS

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T

here are obvious challenges in assessing a partner’s cybersecurity defenses and incident response capabilities especially when there are no industry trade associations or government agencies that offer guidelines for best practices and audits to its membership or constituents. Thus, in most cases, businesses must vet each other and agree on a certain level of risk tolerance.

The following are basic action steps that should be followed when executing a partner agreement: Involve IT security early on to assess a potential partner’s security protocols and standards; Become familiar with the partner’s country’s trade associations, laws and regulations; and

Jesus Peña, CCFT; Director of Computer Forensics and Cyber Security, Andrews International, Inc. D.C. Page, Senior Vice President; Consulting, Investigations and International Operations Division; Andrews International, Inc.

Confirm the existence of: IT security policies Business continuity & disaster recovery plans Acceptable use policies Adequate employee background checks Recurring external vulnerability assessments Information classification Retention and destruction policy Policies, procedures and systems in place to monitor and detect attacks and intrusions.

The level of interconnectivity between businesses continues to increase with advances in information technology and places more demands on companies to ensure its resources are protected. This includes guarding information assets stored and transmitted internally and with trading partners.

Cross-border trading partners, especially Mexico and the U.S., need to be diligent due to the numerous occurrences of breaches or attacks that occur on one side of the border and have devastating effects on the other side.

The attacks on Sony Corporation through PlayStation® and later the movie division wreaked havoc not only on their reputation but on their operations, sales and overall functionality. Fortunately, a solid crisis management plan provided a rapid recovery but not after severe ill effects.

The lesson to be learned is “trust but verify” and ensure technology teams on both sides of the partnership are diligent in their knowledge of data protection, cyber security and the tools to support a trusted environment.

ANALYSIS / ANÁLISIS

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MEXICO’S DEEP WATER EXPLORATION: UNDISCLOSED CHALLENGES TO BE FACED

By Daniel Aranda, Partner in the Mexico City Office of the Gardere Law Firm

The Mexican government through the National Hydrocarbon Commission (NHC) released the fourth bidding round for deep-water exploration on December 17, 2015. As expected, the NHC opted for a license contract as opposed to the production-sharing approach used in previous rounds 1.1 and 1.2.

In this round, the NHC is putting to bid 10 contract areas distributed within the Perdido Fold Belt (four areas) and Salina’s Basin (Cuenca Salina, six areas), both deep-water regions in the Gulf of Mexico.

1

The Binational Business Magazine

Alliance

ANALYSIS / ANĂ LISIS

p.58

The bidding guidelines as well as the model license templates are available for review on the NHC’s website, ronda1. gob.mx. The timeline for the bidding process is summarized in the graph below.

2

So far, 23 companies have expressed interest in participating in Round 1.4., from which nine have already begun the prequalification process.3

Environmental risks.

Though the nine companies already in process of qualifying are publicly traded and thus subject to funding from the capital markets, other service integration companies could also benefit from such financing, especially considering that Mexico has already issued an energy investment vehicle for pipelines and storage facilities known as Fibra E which mimics U.S. master limited partnerships (MLPs) which pose different investment opportunities.

The new Environmental Liability Law enables condemnation to punitive and consequential (indirect) damages for the first time in Mexico; hence, even though the model contract effectively assesses the responsibility for ensuring environmental safety to the contractor, what is not spelledout in the contract is that contractors will become liable not only before the NHC, but also before the populations that could be affected by an environmental accident, as well as by non-governmental organizations and federal and local environmental protection agencies. Thus, while assessing and reporting to the public their risk exposure, companies must consider that there are no precedents

Investors should consider that there are certain aspects that are not fully disclosed in the contracts being offered when assessing their risk exposure and consequently when reporting to their investors and the SEC.

in Mexico on how to determine limitations to punitive or consequential damages.

To this extent, both the initial transition period, as well as the relinquishment of the awarded areas become of the utmost importance since the contractor will assume any and all environmental liabilities that are not disclosed to the NHC.

ANALYSIS / ANÁLISIS

The Binational Business Magazine

p.59

Vicinity of contractual areas.

Civil liability.

As in the case of environmental liability, recent court decisions stand in clear opposition to more than 65 years of consistent legal precedents, with the imposition of punitive damages being used to dissuade others from committing acts that qualify as pain and suffering or slander (moral damage). However, such damages are often assessed entirely at the discretion of a judge who may not yet have faced the question of what should be considered dissuasive in this situation. The issue of class action lawsuits has also recently been introduced to the legal framework, as, a claim has already been brought (though not yet accepted) against BP related to the Deepwater Horizon spill.

bers of a company was limited to their economic contributions, as of now, contractors should also include in their risk matrix the possibility of a Mexican judge piercing the corporate veil to impose personal liability on its shareholders or members if a claim is brought against them by a third party different from the NHC.

As of 2013, the courts have issued more than 13 isolated legal precedents that set aside Mexican legal traditions upholding the validity of the corporate veil. As a result, even though Mexican legal tradition has upheld that the liability of the shareholders or mem-

1. As published in the NHC’s website http://ronda1.gob.mx.

2. As published in NHC’s website.

3. Atlantic Rim México, S. de R.L. de C.V.; Shell Exploración y Extracción de México, S.A. de C.V.; Total E&P México, S.A. de C.V.; Chevron Energía de México, S. de R.L. de C.V.; Exxonmobil Exploración y Producción México, S. de R.L. de C.V.; Hess México Oil and Gas, S. de R.L. de C.V.; Statoil E&P México, S.A. de C.V.; BP Exploration México, S.A. de C.V.; BHP Billiton Petróleo Operaciones de México, S. de R.L. de C.V.

Though the contract model includes a clause that addresses the possibility of requesting unitization of related contractual areas, it is unclear as to whether the unitization contract will void or supersede the provisions of the license agreement. Moreover, when looking at the location of the first contractual area, it should be evident whether the model contract fails to include perhaps one of the major challenges not addressed in the RFP—the existence of a transboundary reservoir.

In case of such a reservoir, by law, PEMEX would become a partner of the contractor for at least 20 percent of the required investment. This unforeseen circumstance could ultimately affect the financial matrix of a contractor when booking reserves.

Thus, while assessing a company’s participation into Round 1.4, contractors should carefully consider the foregoing among the potential risks in order to prevent any unpleasant irrevocable surprises.

MEMBER HIGHLIGHTS / MIEMBRO DESTACADO

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ZEBRA TECHNOLOGIES MAKES BUSINESSES AS SMART AND CONNECTED AS THE WORLD WE LIVE IN We live in a connected world and technology is embedded in everything we do.

Converting the physical to the digital allows businesses to know the location, motion and state of their assets, people and transactions.

Harnessing this new wave of technology empowers businesses with Enterprise Asset Intelligence™. This enhanced business insight allows companies to make more informed decisions and improve performance. Connecting devices to robust cloud technology will allow enterprises to capture and share mission-critical data—making the smart, connected enterprise a reality.

MEMBER HIGHLIGHTS / MIEMBRO DESTACADO

The Binational Business Magazine

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While many people may not recognize Zebra Technologies (NASDAQ: ZBRA) by name, they come into contact with their solutions every day. For example, the barcode labels that are prominently featured on airline bag tags, express delivery packages, and pharmaceutical prescription bottles are often generated by a Zebra barcode label printer, and tracked and managed by Zebra scanners, mobile computers and wireless infrastructure.

Skiers experience less time in lift lines because of Zebra radio frequency identification (RFID) tags that are embedded in the lift tickets which enable resort operators to quickly move skiers through waiting lines. Retail shoppers also see Zebra tags on clothing as an inventory management tool that enables stores to have the right products available on the shelves in real time.

Founded in 1969, Zebra Technologies has a rich heritage of innovation and makes businesses as smart and connected as the world we live in.

The company’s tracking and visibility solutions transform the physical to digital, creating the data streams enterprises need to simplify operations, know more about their businesses, and empower their mobile workforces.

With nearly $4.0 billion in annual revenue, Zebra is a global market leader in a number of advanced technologies, including the Internet of Things (IoT) and offers customers a complete end-to-end solution—from mobile computers and scanners to specialty printers, RFID, software and services—for identifying, tracking and managing critical assets, people and transactions. This allows business leaders to use data to make smarter decisions and take smarter actions by providing them with real-time visibility and mission-critical information in an ever more efficient manner.

With the proliferation of connected devices and the expanding mobile workforce, Zebra is well-positioned to deliver Enterprise Asset Intelligence to help businesses expand their competitive advantage and enable the smart, connected enterprise.

Zebra’s solutions help companies gain greater visibility into their operations and achieve higher levels of growth, efficiency and service. Zebra provides this same Enterprise Asset Intelligence and operational visibility to 95 percent of Fortune 500 companies, including customers in the retail, manufacturing, transportation & logistics and healthcare industries.

Zebra’s broad range of differentiated products, deep understanding of customers and productive R&D ensure that it offers highly relevant solutions globally that help customers take advantage of key technology trends. The company currently holds over 4,200 asset management technology patents and with over 1,700 engineering experts on staff continues to expand its portfolio of solutions and services. For more information, visit www.zebra.com.

UPCOMING EVENTS / PRÓXIMOS EVENTOS

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MAY Chapter

Event

Date

Place

For Further Information

Fiesta TecalISO

1

Irving, TX

gabriela.kenny@usmcoc.org

Chamber Monthly Breakfast Meeting and Networking Event.

4

Chamber Offices. Melo 166 Morelia, Mich.

usmcocmich2@gmail.com

Kenneeth Smith “A Conversation about Mexico´s Strength and Challenges”

5

1800 Century Park East Suite 300 Los Angeles CA

marlen@usmcocca.org

Inter-American Chapter. Miami, FL.

Cinco de Mayo Party

5

Miami, FL

rmartinez@usmcocfl.org

Northeast Chapter. New York, NY.

Annual Cinco de Mayo Corporate Luncheon

5

New York, NY

alejandro@usmcocne.org

Northwest Chapter - Seattle, WA.

Cinco de Mayo Event

6

Columbia Tower Club 701 Fifth Avenue, Floor 76.

Seattle, WA 98104

gmichan@usmcocnw.org

Southwest Chapter. Dallas, TX.

Cinco de Mayo Fair

7

Irving, TX

josie.orosco18@gmail.oom

Houston - The Woodlands - Gulf Coast Chapter

Leaders and Executives Accelerated Program (LEAP). Boundary Spanners and IT Outsorcing

13

St. Thomas University

petegarcia@usmcocgc.org

Binational Office Michoacan Chapter. Morelia, Mich.

California Regional Chapter.

Los Angeles, CA.

Binational Office

Nafta Next Roundtable

13

Washington, DC

gabriela.kenny@usmcoc.org

Binational Office

USMCOC Luncheon with Secretary Guajardo

20

Chicago, IL

Binational Office

Annual Board of Directors Meeting, Binational Conference & Good Neighbor Award

24-25

Washington, DC

gabriela.kenny@usmcoc.org teresa.reyes@usmcoc.org gabriela.kenny@usmcoc.org

NAFTA and TPP - Benefits for Small and Medium Companies

TBD

Miami, FL

rmartinez@usmcocfl.org

3650 W ML King Blvd.

Los Angeles, CA 9008

marlen@usmcocca.org

Inter-American Chapter. Miami, FL. California Regional Chapter.

Los Angeles, CA.

Mezcal and Social Nights at the Chamber

JUNE Chapter

Event

Date

Place

For Further Information

Chamber Monthly Breakfast Meeting and Networking Event.

1

Chamber Offices. Melo 166 Morelia, Mich.

usmcocmich2@gmail.com

California Regional Chapter.

Los Angeles, CA.

Trade Mission to Cuba, Explore business opportunities, where are the opportunities, challenges. Meeting with government officials

3-7

TBD

marlen@usmcocca.org

Houston The Woodlands -Gulf Coast Chapter

Leaders and Executives Accelerated Program (LEAP). The Art and Science of Effective Leadership

10

St. Thomas University

petegarcia@usmcocgc.org

U.S.-MX Chamber Trade Mission Yunnan China

12-16

Yunnan, China

josie.orosco18@gmail.com

Meeting with Consul General of the U.S. in Tijuana, William Ostick and visit two Maquiladoras.

14

TBD

marlen@usmcocca.org

Premio al Esfuerzo Exportador

14

Hotel Crown Plaza

splopez88@gmail.com

Inter-American Chapter. Miami, FL.

Women Doing Business in Mexico and the U.S.

15

Miami FL.

rmartinez@usmcocfl.org

Inter-American Chapter. Miami, FL.

Investment: The Real Truth about Real Estate in South FL

TBD

Miami, FL.

rmartinez@usmcocfl.org

Northwest Chapter - Seattle, WA.

Business Breakfast / Members Meeting

30

Port of Seattle/ Pier 69.

2711 Alaskan Way, Seattle , WA 98121

gmichan@usmcocnw.org

Event

Date

Place

For Further Information

Michoacan Chapter. Morelia, Mich.

Chamber Monthly Breakfast Meeting and Networking Event.

6

Chamber Offices. Melo 166 Morelia, Mich.

usmcocmich2@gmail.com

Houston - The Woodlands - Gulf Coast Chapter

Leaders and Executives Accelerated Program (LEAP). Mexico Energy Reform: Opportunities and Challenges.

8

St. Thomas University

petegarcia@usmcocgc.org

Guanajuato Chapter. Leon, Gto.

Tercer foro Internacional de Sustentabilidad y Responsabilidad Social

13

Hotel Radisson Pomiforum

splopez88@gmail.com

Southwest Chapter. Dallas, TX.

Trade Mission to San Luis Potosi, MX

23

San Luis Potosi, Mx

josie.orosco18@gmail.oom

Members & Public Meeting. Guest Speakers-Mexicali and Calexico Economic Development (CityU, DLA Piper).

28

Columbia Tower Club 701 Fifth Avenue, Floor 76.

Seattle, WA 98104

gmichan@usmcocnw.org

Michoacan Chapter. Morelia, Mich.

Southwest Chapter. Dallas, TX. California Regional Chapter.

Los Angeles, CA. Guanajuato Chapter. Leon, Gto.

JULY Chapter

Northwest Chapter - Seattle, WA

www.energiahoy.com

S U R U TA D E N E G O C I O S

energiahoy @energiahoy Energia Hoy

Con más de 10 años circulando en el mercado, la revista Energía Hoy, publicación insignia de Editorial Engrane, es un punto de referencia para los participantes más importantes del sector energético mexicano por su sentido crítico de los temas que más interesan en esta área, que es el corazón de la economía mexicana.

COMUNIDAD DE EXPERTOS Mes con mes ha sido el espacio donde, con independencia y libertad, empresarios, funcionarios públicos, financieros, investigadores, consultores, académicos y estudiantes, analizan los retos en temas como petróleo, gas, electricidad, petroquímica, minería, siderúrgica, energías verdes y marcos legales.

TIRAJE Y DISTRIBUCIÓN Con un tiraje de 15 mil ejemplares mensuales, certificados por el Instituto Verificador de Medios (IVM), y un pass along de cuatro lectores por ejemplar, la revista circula en todo el país.

Te l é f o n o s : ( + 52 55 ) 6259 4 6 07 y 6 3 8 5 6 6 07

NEW MEMBERS / MEMBER DISCOUNTS

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New members to the United States-Mexico Chamber of Commerce BINATIONAL MEMBERS American Brownfields Corporation Sector: Industrial and Manufacturing Real State www.dallasglobal.com Sports Marketing Monterrey Sector: Sports Marketing www.sportsmarketing.com.mx

INTER-AMERICAN CHAPTER MIAMI, FL

CALIFORNIA REGIONAL CHAPTER LOS ANGELES, CA

PACÍFICO CHAPTER GUADALAJARA, JAL.

Brazil TV Sector: Entertainment www.cnnbraziltv.com

Advantech Sector: Manufacture – Electronics www.buy.advantech.com

Ameri Teknology De Mexico Sector: System Filter www.viwass.com

State Trust Capital, LLC Sector: Wealth Management www.statetrust.com

Brighton Best International Sector: Manufacture - Fastener Products www.brightonbest.com

Grupo Escorpion Sector: Produce

California Bakery & Café

Whirlpool Sector: Appliances www.whirlpoolcorp.com

SOUTHWEST CHAPTER DALLAS, TX NORTHEAST CHAPTER NEW YORK, NY Associates Warehousing Inc. Sector: Transportation Services, Warehousing www.wmparker.com GBM Infrastructure Sector: Real Estate & Real Estate Development www.gbm.com.mx Gensler Sector: Law & Legal Services www.gensler.com

DCET-La Escuelita Sector: Non Profit/ Education www.dcenti.org New Hope of China Sector: Non Profit www.newhopeofchina.org N.2. Marketing Sector: Technology www.n2mkt.com Paychex Sector: Account Services www.paychex.com

InfraRed Capital Partners Sector: Financial Services www.ircp.com Supremia International Sector: Marketing, Public Relations www.ircp.com

HOUSTON THE WOODLANDS GULF COST CHAPTER HOUSTON, TX

Top Mexico Real Estate Sector: Real Estate & Real Estate Development www.ircp.com

Alta Growth Capital - Scott McDonough Sector: Financial Services www.agcmexico.com Advantech - Fei Khong Sector: Computers, Telecomunications www.advantech.com

VALLE DE MEXICO MEXICO City Galerías Bambú Sector: Liquor Producer (mezcal)

Brian Lopera Sector: Financial Services CHI St. Luke’s Health - Lila Fass Sector: Medical Clinics www.chistlukeshealth.org/thewoodlandshospital Entra Consulting - Ricardo Colmenter Sector: Business Consulting www.entraconsulting.com Houston Museum of Natural Science Martine Kaye Sector: Arts and Culture www.hmns.org MD Anderson Cancer Center Kendra Windisch Sector: Medical Clinics www.mdanderson.org Xavier Hawley Sector: Financial Services

Campestre Concordia Sector: Tourist Development www.campestreconcordia.com/

Solar Technology Sector: Renewable Energy www.solartechnology.com.mx

Dilbeck Estates Sector: Real Estate www.dilbeck.com Estafeta U.S.A Inc. Sector: Logistics www.estafetausa.com Farmers Insurance Sector: Insurance services www.farmersagent.com/jgonzalez11 Louroe Electronics, Inc. Sector: Electronics www.louroe.com Martin Alan Ayala Student at UCLA alan-ayala@hotmail.com MEXCHAM (Mexican Chamber of Commerce in China) Sector: Chamber of Commerce www.mexcham.org

C

M

PG Law Sector: Legal Services. www.ipglaw.com/gladys-orozco

Y

CM

Promotora de Casas y Edificios, S.A. de C.V.P Sector: Real Estate www.descanso.com.mx

MY

PYAGSA Sector: Industrial and household components www.pyagsa.com

CY

Relojes Centenario Sector: Clocks www.centenario.com.mx

CMY

K

SICREA Internacional LLC Sector: Automotive www.sicreamexico.com.mx/home/index.php The Westin Guadalajara Sector: Hospitality www.westin.com/guadalajara TOPAZ Sector: Real Estate www.topazsanpedro.com Trade Finance Solutions Inc. Sector: Financial Services www.tradefinancesolutions.com Wood Products Sector: Wood Products

Consult your regional chapter to obtain discounts.

VALLE DE MÉXICO CHAPTER Mexico City - Ostar Hotel Group: Generve Hotel in Mexico City -St. Regis Mexico City -Marquis Reforma Hotel -Hoteles Misión All its 43 locations in Mexico -Four Seasons Hotel Mexico -Sheraton Maria Isabel Hotel & Towers -Hotel Imperial

Houston - Woodlands Gulf Coast Chapter The Woodlands, TX - The Woodlands Resorts & Conference Center

GUANAJUATO CHAPTER León, Gto. - Mexico Plaza Hotels Locations: Leon, Guanajuato, Irapuato, Salamanca, Celaya and Guadalajara, Coming soon: Aguascalientes, Silao y San Miguel de Allende - Hotel La Nueva Estancia

MID-AMERICA CHAPTER Chicago, IL

CALIFORNIA REGIONAL CHAPTER Los Angeles, CA

- Aeromexico - United/Continental - American Airlines - Crown Paradise Resorts - Las Brisas Hotels

- Aeromexico - Alaska Airlines - Benckmarkemail en Español - Agencia Aduanal adolfo Ayala Bejarano - Correduria Publica No. 23 - Cima Design - Lewis and Lewis Insurange Agency, Inc. - Todd Becraft Attorney at Law Insurange Agency, Inc. - Todd Becraft Attorney at Law - Trio America

INTER-AMERICAN CHAPTER Miami, FL - Interjet - Aeromexico - Sports Club

PACÍFICO CHAPTER Guadalajara, Jal - ABC Global Group