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EDITORIAL COUNCIL UNITED STATES - MEXICO CHAMBER OF COMMERCE

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

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

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

EDITORIAL CONTRIBUTORS Joseph Chapa

Vice-President International Trade Development Center

Josie Orosco Alejandro Ramos Elba Hentschel Sergio Lopez Ponce Jorge Alejandro Vega

Anja Miroslaw Andres Garcia Nick Ortiz Jim MacLellan

Director of Trade Development for the Port of Los Angeles

Ersky Ricaño Eduardo Bialostozky Gerardo Funes

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For advertising inquiries, contact: Rafael López rafa.lopez@multicolorig.com Executive Director Gerardo Funes gerardo@usmcoc.org Vice-President of Communications

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Cecilia López ceci.lopez@sbcglobal.net Publishing Manager

Cover Photography by Mexico Tourism Board

ALLIANCE is a quarterly publication of the United States-Mexico Chamber of Commerce and Promotora Mexicana de Ediciones S.A. de C.V., for the binational enterprise sector. Mexico office: Av. Jose Maria Chavez No. 3408, Ciudad Industrial; Aguascalientes, Ags., Mexico (www.promexe.com) United States office: United States-Mexico Chamber of Commerce, 5510 Cherokee Ave. Ste. 120, Alexandria, VA 22313-2320. Mailing address: P.O. Box 14414, Washington, D.C. 20044. Printed by Multicolor Industria Grafica, S.A. de C.V. Av. Jose Maria Chavez No. 3408, Ciudad Industrial; Aguascalientes, Ags., Mex. Specifications: Total production; 2,000 units, covers: couche paper 135 grs. Varnish UV, interiors: couche paper 135 grs. Impression: offset full color. The views expressed in this magazine are the responsibility of the authors and do not necessarily reflect official positions of the U.S.-Mexico Chamber of Commerce, its members or supporters. Our goal is to present a broad range of perspectives on shared bilateral issues.

EDITORIAL

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elcome to this edition of Alliance Magazine, a publication by the United States – Mexico Chamber of Commerce, designed to inform and inspire our audience about the activities of the Chamber and the U.S. – Mexico Cultural and Educational Foundation.

Over the past six months the Chamber has hosted two very topical and in-depth conferences in both of our nations’ capitals. Last November we had our Binational Meeting and Awards Gala Dinner in Mexico City. This conference, entitled “Mexico 2010 – Celebracion del Bicentenario,” addressed major issues in Mexico such as medical tourism, health and chronic diseases, and the financial forecast for 2011, as well as U.S. Mexico Security Cooperation. In March of this year, we held our XV Annual Congressional Border Issues Conference on Capitol Hill in Washington D.C. In attendance were more than 280 guests including members of Congress from several states and businessmen from both sides of the border. Topics included the development of trade, building of strong and resilient communities, and strengthening the U.S. – Mexico security cooperation along the border region. In this edition of Alliance we are pleased to share with you the ins and outs that have made FONATUR an industry leader in providing the financial resources and consulting expertise that have helped the Mexico tourism industry to flourish. From its establishment over thirty-five years ago to today, close to 73 million foreign guests have stayed in hotels whose infrastructure was established in FONATUR destinations, and close to $2 billion have been invested; with private revenue the number is close to $15 billion. However, as you will read in the article, FONATUR is not only investing in infrastructure for foreign tourism, but also in projects that will benefit the local communities. Also in this edition, we are pleased to include several key contributors including Jim MacLellan, Director of Trade Development for the Port of Los Angeles, who wrote articles on Agricultural Perishable Exports from Mexico to the U.S. West Coast & Cruise Tourism between the Port of L.A. and the Mexican West Coast. We would also like to thank Gary Baise, principal at Olsson, Frank & Weeda, for his column on cross-border trucking, Ben Greenberg of Valuaciones Montaña Verde for his opinion on the Mexican Tourism Industry’s Perspectives for 2011, and Isaac Abadi Achar, CEO of REES Mexico for his commentary on the business opportunities associated with retirement in Mexico. Finally, a special thanks to Jay Van Heauven, Executive Director & CEO of Endicott College Mexico and past president of the Chamber, for his insightful piece on Medical Tourism in Mexico. Thank you to everyone who helped put this publication together, we hope you enjoy this edition of Alliance Magazine. We look forward to seeing you at our events and especially at our Annual Conference and Gala on May 12-13, 2011, in Washington, D.C.

Albert Zapanta

President & CEO

EDITORIAL / EDITORIAL

Albert C. Zapanta, President & CEO, Binational Headquarters; Francisco López Espinoza, CEO, MULTICOLOR Industria Gráfica; Eric Rojo, VicePresident/Mexico Liaison; Joseph R. Chapa, Vice-President, International Trade Development Centers; Gerardo Funes, Vice-President of Communications; Cecilia López, Publishing Manager; Alberto García-Jurado, Director Cultural of Effectiveness Center; Jill Martínez, Owner, Irving Online; and Francisco López Rivera, General Manager of MULTICOLOR Industria Gráfica.

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CHAPTER OFFICES

OFICINAS DEL CAPÍTULO

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OF INTEREST DE INTERÉS

THE COVER

FONATUR, TOURISM INVESTMENT OPPORTUNITIES IN MEXICO

OPINIÓN

BINATIONAL EVENT EVENTO BINACIONAL

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OPINION

BREVES

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ARTÍCULO DE PORTADA

BRIEFS

CHAPTER ACTIVITIES...

ACTIVIDADES DEL CAPÍTULO...

32 • Mexico Tourism Industry Perspective 2011 • The New Face of Medical Travel • Tax Issues for the Export Manufacturing Sector in Mexico • Retirement in Mexico • Crossborder Trucking

42 KCSM Business without Borders • Monroy Accountants •

NEW MEMBERS

NUEVOS MIEMBROS 4

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MEMBER HIGHLIGHTS MIEMBRO DESTACADO


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

BINATIONAL HEADQUARTERS / OFICINAS GENERALES 5510 Cherokee Ave. Ste. 120 Alexandria, VA 22312-2320 Mail to: P.O. Box 14414, Washington, D.C. 20044

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

California Regional Chapter Los Angeles, CA Marlen Marroquin Executive Director 2450 Colorado Ave., Suite 400E Santa Monica, CA 90404 Tel: 310-586-7901 Fax: 310-586-7800 marlen@usmcocca.org

Mid-America Chapter Chicago, IL Blanca Berthier Executive Director One Prudential Plaza 130 East Randolph Drive, 36th Floor Chicago, Illinois 60601 Tel: 312-729-1355 / 312-729-1356 Fax: 312-729-1354 blanca.berthier@usmcoc.org

Pacífico Chapter Guadalajara, Jal Enrique Pérez Bouquet Santoscoy Executive Director Av. Hidalgo #1443 Planta Baja Colonia Americana C.P. 44160 Guadalajara, Jal. Tel: (33) 3825-5454 Ext. 188 Fax: (33) 3825-5454 Ext. 115 epbpuquet@usmcocpacifico.org

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

Southwest Chapter Dallas, TX Josie Orosco Executive Director 901 Main Street, 44th. Floor Dallas, TX 75202 Tel: 214-747-1996 Fax: 214-747-1994 swusmx@netzero.com

Inter-American Chapter Miami, FL Elba Hentschel Executive Director 1441 Brickell Ave. Suite 1400 Miami, Florida 33131 Tel: 305.374.7401 Fax: 305.374.7405 interamerican@usmcoc.org

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

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

International Trade Development and Assistance Center Joe Chapa Executive Director 207 Mandalay Canal Irving, TX 77039 Tel: (406) 839-1796 jrchapa7@gmail.com

Pacific Nortwest Chapter Seattle, WA Jorge Madrazo Cuéllar President 208 145th PL NE Bellevue, WA 98007 Tel: (206) 306 4881 madrazojorge@yahoo.com

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

Valle de México Chapter México, D.F. Anja Miroslaw Executive Director Av. Insurgentes Sur 1605 Torre Mural, Piso 25, Mod. 3 Col. San José Insurgentes Benito Juárez, 03900 México, D.F. Tel: (52) 55 5662-6103 Fax: (52) 55 5683-2700 a_miroslaw@usmcoc.org

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

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

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

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

Southeast Chapter Raleigh, NC Peter Appleton President 1506 Darby Place. Goldsboro, NC 27534 Tel: 919-521-8915 pappleton@usmcocse.org

Mid-Atlantic Chapter Washington, D.C. Eduardo Bialostozky Trade Representative Alexandria, VA 22312 Tel: 703-752-4752 Fax: 703-642-1088 Eduardo.bialos@usmcoc.org

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

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

CHAPTER OFFICES / OFICINAS DEL CAPÍTULO

Joe Chapa Vice-President International Trade Development Centers jrchapa7@usmcoc.org Tel: 214-329-4559 Fax: 703-642-1088

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

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Mexico’s Cogeneration Potential for Energy Efficiency and Investment Opportunities

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oday, electric power cogeneration is considered a significant and cost-effective option for energy conservation within the Mexican economy and simultaneously supports Mexico’s strategy to achieve sustainable development. Mexico has an enormous potential to produce economically feasible electricity through cogeneration with a capacity up to 10.164 MW.

BRIEFS / BREVES

Consumption of electricity in Mexico is vast and growing rapidly. Thus, combined heat and power (CHP) electricity, known as cogeneration, is a more efficient technological innovation option to address the rising demand for electricity in Mexico through the use of excess thermal energy produced by fuel that would be, otherwise wasted.

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Mexico allows power cogeneration to private investment for self-use or to deliver their excess power to the Federal Commission of Electricity (CFE), the state-owned utility. As a result, cogeneration installed capacity has expanded to more than 3,300 MW. However, President Felipe Calderón’s

ambitious goals to make Mexico more energy efficient and to reduce its carbon footprint have placed cogeneration capacities as a key strategy. In this regard, Mexico has established a set of public policies and improvements in the regulatory framework which promotes investments to achieve a significant development of cogeneration potential by 2012. By using less fuel to get the same energy, cogeneration brings significant benefits to the country, both environmental and economic. Thus, Mexico would be able to save on fuel consumption and reduce imports by up to 74 percent in natural gas alone; decrease carbon emissions into the atmosphere by 12,000 tons of CO2 annually; free installed capacity of the grid and power plants by almost 6,000 MW; reduce transmission losses and distribution of electricity by 18 percent; and encourage new investment and job creation. Tapping into Mexico’s potential cogeneration electricity represents business opportunities for new investments of more than $11.2 billion. Estimated foreign investment up to $7 billion will lead the cogeneration expansion in Mexico, as well as spur an outlay in

domestic materials, construction, and engineering services by nearly $4 billion. These investments should provide strong impetus to job creation by generating an estimated 12,000 jobs in engineering services and more than 100,000 jobs in construction. Not only does the entire economy feel the benefits of investment in cogeneration, but the individual companies see critical and tangible benefits as well. Companies that operate using cogeneration systems experience higher efficiency and reliability of the energy used in their production processes. Less energy is used and it is of higher quality. Thus, companies lead the way in competitiveness as production costs are reduced. The industrial sector presents the greatest opportunity for cogeneration development, with a feasible capacity of up to 6.09 GW if industries inject excess power into Mexico’s grid. The industrial sector would improve cash flow and reduce their environmental footprint as their savings skyrocket with the


investment in cogeneration electricity. Clearly, this is a win-win situation all around. For example, the chemical industry would internally benefit from $715 million a year with cogeneration; the food industry would gain $352 million annually, and the cellulose and paper industry would see $472 million in savings per year. Regarding Pemex, the Mexican state-controlled oil company and one of the country’s largest electricity consumers, which already has a 2,150 MW installed capacity to generate electricity, accounting for 4 percent of Mexico’s total. An agreement reached

with CFE allows Pemex to sell electric surplus for assimilation into the national grid, enabling new investments for an expected cogeneration installed capacity of 3,100 MW. The 300 MW cogeneration plant at the Nuevo Pemex gas processing complex is the first large scale project for self-supply purposes. The development of the remaining potential for cogeneration in eight oil refining and petrochemical complexes will be focused on selling electricity to CFE and will require the joint participation of Pemex and the private sector. Finally, the sugar industry also has an estimated potential of nearly 1,000 MW of installed capacity for cogeneration. This technology

would increase the profitability of the industry and also enables the use of waste pulp as a renewable fuel resource. The implementation of cogeneration technology in sugar mills would outline a clear cut example of efficiency at its best. The benefits of investing in cogeneration in Mexico would be monumental and critical to economic growth and environmental improvement. Increased energy savings mean greater investment into the Mexican economy which would trigger a better quality of life and prosperity for not only Mexico but North America as a whole.

Infrastructure Projects in Mexico La Caridad Cogeneration Power Plant Sponsor: Grupo Mexico Location: La Caridad, Sonora Project Value: $300 million

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rupo Mexico and Siemens signed a contract for $300 million dollars for the construction of a cogeneration power plant at La Caridad, Sonora. The power plant will have a generating capacity of 250 MW and will enable the mining company to reduce electricity costs by 40 percent. This is a “turnkey contract” where Siemens is responsible for the design, construction, operation and maintenance of this asset to generate electricity. Business opportunities: Construction materials, civil engineering, turbines, generators, electrical equipment.

Pemex began an international public bid to contract a company to do the complete maintenance of 785 km of pipelines as part of a two year

working plan. The plan was conceived to complete the certification of 12 thousand kilometers of pipelines. The contract includes providing maintenance to 706 km of natural gas pipelines, 35 km for liquefied gas, and 44 km for basic petrochemicals

throughout 11 states of Mexico. Business opportunities: construction materials, civil engineering, inspection equipment, precision instruments, products, heavy machinery.

BRIEFS / BREVES

Pipeline Maintenance Sponsor: Petroleos Mexicanos (PEMEX) Location: 11 states Project Value: $120 million

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Option for Transportation of Perishable Agricultural Exports from Mexico to the U.S. West Coast

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erishable agricultural products are a major export from Mexico to California. Virtually all of this cargo is currently moved by truck; some moves through Arizona and Texan border crossings.

• Disney Cruise Line is now sailing out of the port. • Princess Cruises has utilized the port for more than 30 years. • NCL, Carnival and Crystal Cruises depart from the Port of Los Angeles for their excursions to Mexico.

Although cargo has been transported primarily via truck in the past, it may be beneficial to begin to move some of this cargo by ship, depending upon the point of origin. An association of agricultural producers combining their individual shipments at some location on the west coast of Mexico may create enough cost benefit to justify shipping the products on a refrigerated ship, or on a roll-on/roll-off ship with reefer trucks or container line services.

Terminal Upgrades Disney, Princess and Norwegian Cruise Lines are now beneficiaries of a unique technology designed for cruise ships that eliminates significant ship exhaust when they are at port. Another upgrade, AMP Mobile, is another innovation that demonstrates our commitment to developing cutting-edge technology that can benefit port communities everywhere.

Representatives of the Port of Los Angeles have expressed interest in discussing the potential of such a project with private sector parties, as well as with the economic development and agricultural departments near the west coast of the U.S.

New Solar Power Generation The Port of Los Angeles has also completed its cruise center solar rooftop project, a 71,500 square foot, one megawatt system capable of generating approximately 1.2 million kilowatt hours of electricity annually to the Los Angeles Department of Water and Power (LADWP) energy grid.

OF INTEREST / DE INTERÉS

Efforts are underway to establish a committee to research this matter cooperatively with interested members of the Chamber.

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Cruise Tourism between Port of L.A. and the Mexican West Coast Number # 1 Cruise Port The Port of Los Angeles is the top departure point on the U.S. west coast for cruises to Mexico. Officials representing the port are working with Mexico and the cruise lines to improve the cruise experience. The port has generated new customers and retained longtime users due to its amenities and services:

The $10.8 million solar photovoltaic installation, which is expected to result in an annual $200,000 energy cost savings, is the first phase of a multi-location solar power program that will eventually produce 10 megawatts of solar system generation capacity. Three additional project phases are slated for completion over the next five years. “Clean energy is essential if we are to meet the future growth and development needs of Los Angeles,” said Los Angeles Mayor Antonio Villaraigosa. “This solar project and others being initiated within our city will not only reduce our carbon footprint, but also add meaningful new jobs to our green sector workforce.”


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he United States-Mexico Cultural and Educational Foundation, a sister organization of the U.S.-Mexico Chamber of Commerce, headquartered in Irving, Texas, was created 15 years ago to initiate and participate in a variety of projects. In keeping with its mission: The Foundation, a 501(c)(3) nonprofit organization, oversees educational and cultural exchange programs... designed to develop business leaders of the future, infuse practical business knowledge into the academic realm and foment understanding between the neighboring countries.� (Source: www.usmcef.org) In 2010, the Foundation embarked on a program aimed at local high school seniors that has not only been a resounding success, but is receiving national recognition in the area of

education. The program, Future Leaders of Irving (FLI), is funded by the Verizon Foundation. The vision of FLI is to create future leaders by providing exposure and training for the students selected for the program and, consequently, greater awareness, participation and contribution to the local community. There are numerous executive leadership programs for adults throughout the country, but it is rare to find a similar program for the younger generation which often needs extra skills training beyond the classroom. The FLI program works with school counselors to expose students to the community involvement opportunities that help boost their leadership potential. The goal of the program is to provide information and guidance for students evaluating their college or career opportunities. Currently, program selects 20 to 40 qualified young adults each school semester who, while not necessarily at the top of their class, are good students with leadership potential.

OF INTEREST / DE INTERÉS

Creating future leaders

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OF INTEREST / DE INTERÉS

The ethnic composition of the FLI groups reflects the Irving Independent School District student population, which is about 70 percent Hispanic. One of the goals is to maximize their potential for greater achievement when they are exposed to appropriate role models and the public, private and nonprofit sectors in the local community. Classes meet for a full day four times per semester. The seniors are put through a structured program with team-building exercises, academic projects and field trips to local post-secondary educational institutions, organizations, companies and governmental agencies that introduce them to environments few would have had the opportunity to experience. Program administrators coordinate schedules with the schools to ensure that meeting dates do not conflict with school tests or other important dates, and that teachers are made aware of the reason for their students’ absences.

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Although the program is modest, the goals are ambitious; there are financial, administrative and logistical hurdles to overcome, however, the Foundation has been fortunate in partnering with organizations that are providing key collaborative assistance, including the Irving YMCA, the Greater Irving-Las Colinas Chamber of Commerce, the City of Irving, and the Irving Independent School District. In fact, the team has proved a dynamic partnership and the results have been very gratifying. At the beginning of the inaugural session in spring 2010, only twenty percent of the students had plans set in place

for postsecondary education. By the end of that session, the percentage of students with postsecondary education plans had jumped to sixty-five percent. In the second class in fall 2010, one hundred percent of the participants reported that Future Leaders of Irving had a positive impact on their lives. Further, fifty-eight percent stated that they had changed their future life plans based on something that they learned through FLI. Other gains and improvements from the program reported by the students include: sixty-two percent in public speaking skills, sixty-seven percent in self-confidence and social connections, seventy-one percent in personal growth and positive adult role model, seventy-nine percent in leadership skills and ninety-six percent in exposure to Irving opportunities. There is excitement in Irving about FLI’s positive impact on the local workforce and community as the program helps identify, educate, and develop local youth to become future business and civic leaders. Al Zapanta, president & CEO of the U.S.Mexico Cultural and Educational Foundation, plans to expand the program to other parts of the country, especially cities where the U.S-Mexico Chamber has offices. For more information about the program, contact the United States-Mexico Chamber of Commerce, Joe Chapa at jrchapa7@gmail.com


Juan Manuel Galarza Tohen, Chief Commercial Officer, FONATUR

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n December 13, 2010, the U.S.-Mexico Chamber of Commerce, in conjunction with the U.S.-Mexico Educational Foundation, and Valuaciones Montaña Verde, held the first of several Mexico Tourism Investment Forums that the Chamber will be hosting across the country in the coming year. The goal of these forums is to bring investors from the United States, Mexico, and other countries the Chamber has established with and introduce them to the objectives and tourism expansion plans of the Mexican government. Potential investors include commercial real estate developers, hotel chains, tourism medical groups, financial institutions, and other related industry groups.

This opening event, which took place in Irving, Texas, included the mayors of Irving and Leon, Guanajuato, who signed a Sister City agreement at the conference. Also participating as keynote speakers were Jacqueline Arzos, Undersecretary of Tourism Development in Mexico; Manuel Galarza Tohen, Chief Commercial Officer for FONATUR; and Octavio Aguilar, Regional Director Southern U.S. and Colorado for the Mexico Tourism Board. Attendees heard about current and potential tourism projects that are being developed, as well as reports from key business leaders who already have some investments in the Mexican tourism industry. Much of the emphasis of this conference, because of Irving’s proximity to the border, focused on retirement communities in Mexico and the numerous opportunities that were available in this industry. After the conference, attendees were treated to a Dallas Cowboys vs Philadelphia Eagles NFL Football game, which ended with a 30 to 27 win for the Eagles.





Octavio Aguilar, Regional Director Southern U.S. and Colorado, Mexico Tourism Board.

Dr. Jacqueline Arzos, Undersecretary for Tourism Development, Mexico’s Secretariat of Tourism delivering keynote remarks at the Forum’s luncheon.

Amb. Juan Sosa, President, U.S.- Panama Business Council speaking about the Panama Canal expansion

Mayor Ricardo Sheffield, Leon, Guanajuato and Mayor Herbert Gears, Irving, Texas presenting the sister cities proclamation between Leon, Gto. and Irving, TX.

OF INTEREST / DE INTERÉS

Medical Tourism Investment Forum

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BINATIONAL MEETING & AWARDS GALA DINNER

“MEXICO 2010 – CELEBRACIÓN DEL BICENTENARIO” By Erksy Ricaño and Eduardo Bialostozky

Al Zapanta (far right) introduces the Transportation and Infrastructure panel. From left to right: Juan Vega Arriaga, Director General, Naviera Integral; Alonso Quintana Kawage, Vice President Administration and Finance, Empresas ICA; José Zozaya, President, Kansas City Southern de México; and Juan Francisco Molinar, Mexico’s Secretary of Transportation and Communication (SCT).

T

he U.S.-Mexico Chamber of Commerce closed out the celebration of the bicentennial by hosting its annual binational meeting and awards gala from November 8 – 10, at the St.Regis Hotel in Mexico City.

BINATIONAL EVENT / EVENTO BINACIONAL

This year’s conference, Mexico 2010-Reunión del Bicentenario, commemorated the 200th anniversary of Mexico’s independence and the centennial of Mexico’s Revolution. Topics discussed during the conference included, health and chronic diseases, medical tourism and U.S.-Mexico security cooperation among others.

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The conference opened with the topic of health and medical tourism. The panel included Ed Kadunc, president of the Pan American Health and Educational Foundation, Solange Marques from Kraft Foods Mexico, and Miguel Herrera, Director of Healthcare Practice for Latin America in Burson-Marsteller. According to statistics provided by the speakers, the status is becoming increasingly worse in Mexico. Along with government responsibility in educating the population on the causes and effects of chronic diseases, the panelists also put a lot of responsibility on the private sector for influencing people’s easting habits. José Angel Cordova, Mexico’s Secretary of Health, spoke during the luncheon. He detailed the objectives of the ministry to educate Mexicans about living healthier lifestyles and the dangers of not doing so. He stressed the importance of investing in policies that would allow for greater health coverage for all citizens. In that regard, he described a government program called “Cinco pasos para tu salud,” which was created to prevent chronic diseases.

Solange Márquez Espinoza, Gerente de Asuntos Públicos, Kraft Foods

Health and Chronic Diseases Panel


Luis Ramirez, Former Colombia’s Minister of National Defense. Also in the picture, panelist and Bruce Mcindoe, President, iJE and Monte Alejandro Rubido, Mexico’s Undersecretary of Public Security (SSP)

The day’s second panel took a closer look at medical tourism, resort destinations and retirement communities in Mexico. Speaking on this panel were Jaqueline Arzos, Undersecretary of Tourism Planning in Mexico; Oscar Espinoza, President of Bufete Consulta; Bruce Greenberg from Valuaciones Montaña Verde; and Eduardo Portas, a member of the Advisory Board of the Center for Medical Tourism Research from the University of the Incarnate Word. The consensus was that, in order to attract more tourism as a whole, Mexico must diversify its touristic appeal. In other words, instead of simply being a beach destination, Mexico has to highlight its other great assets such as its cultural attractions. By doing so, the range of people who would be interested in traveling to Mexico for general tourism, a procedure, or to retire, could be amplified substantially.

USMCOC Board Member Robert Allen, Jr., with Mexico’s Attorney General (PGR) Arturo Chavez Chavez

Mexico’s Attorney General (PGR) Arturo Chavez Chavez

The day ended with with a reception hosted by John D. Feeley, Deputy Chief of Mission from the Embassy of the United States to Mexico on behalf of the U.S. Ambassador Carlos Pascual, at the U.S. ambassador’s residence. The second day’s presentations started off with a panel on U.S. – Mexico security cooperation. The panel featured Alejandro Rubido, Mexico’s Undersecretary of Prevention and Citizen Participation, Luis Ramirez, Colombia’s Former Minister of National Defense, and Bruce Mcindoe, President of iJET Intelligence Risk System. Undersecretary Rubido stressed that, contrary to popular belief, crime and murder rates in Mexico had actually fallen in 2010, compared to recent years. However, the media attention on the crimes committed by the illegal drug trade overshadow any positive news that would filter through.

Antonio Cuellar Salas, Cuéllar Salas y Cuéllar Steffan, S.C.; José García Torres, USMCOC Mexico City; Francisco Montes, Tyson Foods; Gerardo Funes USMCOC National Office; Enrique Pérez Bouquet, USMCOC Guadalajara; Carlos Arceo, Global Medical Tourism Congress & Expo; and Antonio Cuellar Steffan, Cuéllar Salas y Cuéllar Steffan, S.C

BINATIONAL EVENT / EVENTO BINACIONAL

José Angel Córdova, Mexico’s Secretary of Health

Al Zapanta, President & CEO, USMCOC; Oscar Espinosa, President, Bufete Consulta; Eduardo Portas, Member of the Advisory Board, University of The Incarnate Word; and Bruce Greenberg, Valuaciones Montaña Verde.

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whose vision and continued commitment have strengthened the relations between Mexico and the United States. This year the award was presented to Secretary José Angel Córdova, Mexico’s Secretary of Health, Former Minister Luis Ramirez, Ex-Minister of Colombia’s National Defense, and Gov. Juan Sabines Guerrero, Governor of the State of Chiapas.

Steve Salazar, Dallas City Council Member; Al Zapanta, President & CEO, USMCOC; John D. Feeley, Deputy Chief of Mission, Embassy of the United States; and Tennel Atkins, Dallas City Council Member “Buen Vecino”Awardee recipient José Angel Córdova, Mexico`s Secretary of Health.

John D. Feeley, Deputy Chief of Mission, Embassy of the United States addresses USMCOC members at the Annual Meeting welcoming reception.

Remarks by Governor Leadership “Buen Vecino”Award recipient Juan Sabines, Governor of the State of Chiapas

BINATIONAL EVENT / EVENTO BINACIONAL

Former Minister Ramirez, who was at the forefront of Colombia’s fight against drug violence advised that it will take not only the government, but also the support of private sector, and the individual communities for the country to come out victorious in this struggle.

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The day’s second panel focused on Mexico’s economy and the fiscal forecast. The esteemed panel, included Undersecretary of the Secretariat of Finance and Public Credit Gerardo Rodriguez, Executive Vice President of IBC Bank Gerry Schwebel, Dallas City Councilmember Ternell Atkins, General Legal Counsel for Pro-Mexico Alfonso Cervantes, and City of Dallas Councilmember Steve Salazar. While most of the panelists seem generally optimistic about Mexico’s economic future, they were all quick to point out that greater foreign investment was needed for this growth to occur. Similarly, it was agreed that Mexican government had to invest more money into workers’ education, as well as increase investments in infrastructure, to attract more foreign companies. The third panel featured Juan Francisco Molinar, Mexico’s Communications and Transportation Secretary: Jose Zozaya, President of Kansas City Southern de Mexico and Alonso Quintana, Vice President of Finance and Administration, who spoke on transportation and infrastructure. The panelists emphasized Mexico’s strategic location as the United States’ gateway to Latin America, and how it should be exploited to garner more trade. Also discussed were the international intermodal corridor investments that would bring efficiency and competitiveness to the transportation arena. The conference concluded with the Awards Gala Dinner, where the Chamber annually honors individuals in the private and public sectors

Luis Ramirez, Former Colombia’s Minister of National Defense receiving the “Buen Vecino”award from USMCOC Chairman, Mike Carricarte and USMCOC President, Al Zapanta.

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

“Binational Meeting & Awards Gala Dinner Mexico 2010” November 8 – 10, 2010 Mexico City


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BINATIONAL EVENT / EVENTO BINACIONAL


XV ANNUAL U.S.-MEXICO CONGRESSIONAL BORDER ISSUES CONFERENCE

Secretary Janet Napolitano, U.S. Department of Homeland Security, delivering her keynote address at the conference luncheon.

O BINATIONAL EVENT / EVENTO BINACIONAL

n March 16 - 17, the U.S.-Mexico Chamber of Commerce, in conjunction with the office of Congressman Silvestre Reyes (D-TX) and the Congressional Border Caucus, cohosted the XV Annual U.S.-Mexico Congressional Border Issues Conference in Washington, D.C. The main goal of this conference was to address topics that affect both sides of the U.S.-Mexico border.

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Congressman Mike McCaul giving Binational Border Cities Leadership Award to Mayor Juan Carlos Escamilla (City of San Luis Arizona), at the Congressional Reception.

The conference, which took place at the Rayburn House Office Building, began with the Chamber’s President and CEO Al Zapanta, introducing conference co-chairs, Rep. Silvestre Reyes (D-TX) and Rep. Mike McCaul (R-TX). Zapanta gave special recognition to Mayors Juan Carlos Escamilla of San Luis, Arizona, and Manuel de Jesús Baldenebro, San Luis Rio Colorado, Sonora, for their collaboration on projects they have created to improve the lives of both their communities. Also during the initial remarks, Congresswoman Gabrielle Giffords (DAZ), who was the victim of a horrific shooting that took place as she spoke at a community outreach event in Tucson, Arizona this past January was given a special tribute. Panel #1: Building Strong and Resilient Communities along the U.S.-Mexico Border

Mayor Juan Carlos Escamilla (City of San Luis Arizona) receiving Binational Border Cities Leadership Award. From left to right: Honorable Al Zapanta (President & CEO, USMCOC), Congressman Silvestre Reyes, Mayor Juan Carlos Escamilla (City of San Luis Arizona), Congressman Mike McCaul.

The first panel focused on building strong and resilient communities along the U.S.-Mexico border. The moderator, Jose Carreño from the


Al Zapanta, President & CEO, USMCOC giving the U.S.-Mexico Chamber of Commerce Eagle Star to Amb. Arturo Sarukhan, Ambassador of Mexico to the United States.

Guillermo Valenzuela, Director of Aliviane, translating for Oscar Kuri, Director General, Coalición Empresarial Pro Libre Comercio, at Developing trade, Commerce, Infrastructure and Tourism along the U.S.-Mexico Border Panel. In the middle, Martin Rojas, Vice President of Security and Operations, American Trucking Association.

Thomas S. Winkowski (CBP Office of Field Operations) speaking at Developing Trade, Commerce, Infrastructure and Tourism Panel. On the left Matthew Rooney (U.S. Department of State).

CEDAN-ITESM, challenged citizens to hold their own governments accountable for resolving problems facing the border region. In response, Paul Weisenfeld, Senior Deputy Assistant Administrator for the Latin American and Caribbean Bureau at USAID, commented that U.S. and Mexican border cities are implementing different crime lowering and crime mapping awareness campaigns stating, “Challenges are hard when dealing with organized crime, but we will have higher results with time and bilateral cooperation in the zone.”

Director General, Coalición Empresarial Pro Libre Comercio S.C., discussing the necessity of border agencies becoming more efficient to increase trade and commerce between the United States and Mexico. One approach to accomplish this is by simplifying the processes and movement of people and capital.Kuri also commented on the importance of ending the distrust that exists between people on both sides of the border so that investment and tourism can flourish and benefit local cities.

Panelist, John Rendon, President and CEO of the Rendon Group Inc., stated that in order to create resilient borders, it is critical to have strong community dialog at all levels of the community. Each person, and each family, must be aware of what is happening around them, and must take action against the criminal forces that they live with everyday.

Another Panelist, Antonio del Rosal, Marketing Coordinator for the Mexico Tourism Board, shared Mexico’s new strategies to attract more tourism and investment to the country. He stated that Mexico is focusing on creating something he termed “the Mexico experience” for foreign visitors. By providing a valuable overall experience for tourists,—which includes the warmth of Mexican service, combined with rich culture— Mexico is embarking on a campaign to attract tourism not only to the border region, but to the country as a whole.

Overall, the main points expressed by the panelists were: • The importance of investing and creating new jobs on both sides of the border; • Giving upcoming generations the education and recreational activities necessary to keep them away from crime and drugs; and • Border security is a joint problem that can only be solved by having the two countries working together. Panel #2: Developing Trade, Commerce, Infrastructure and Tourism along the U.S.-Mexico Border The second panel, titled “Developing Trade, Commerce, Infrastructure and Tourism along the U.S.-Mexico Border,” featured Oscar Kuri,

Keynote Addresses Along with the panel discussions, the Chamber was honored to hear from the Mexican Ambassador, Arturo Sarukhan, and the keynote speakers, Secretary of the U.S. Department of Homeland Security Janet Napolitano and Senator John Cornyn (R-TX). All three spoke about border security, public spending to patrol the border, education, foreign direct investment, and the government’s cooperation with the public sector in dealing with the issues along the 2,000-mile border.

BINATIONAL EVENT / EVENTO BINACIONAL

Congressman Mike McCaul at Welcoming and Opening Remarks speech.

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Congressman Mike McCaul giving Certificate of Appreciation to Senator John Cornyn. From left to right: Honorable Al Zapanta, Senator John Cornyn, Amb. Arturo Sarukhan and Congressman Mike McCaul.

Congresswoman Judy Chu, Congressman Henry Cuellar and Suzanne Petrie, Director of Homeland Security, TASC, at the Strengthening U.S.-Mexico Security Cooperation & the Merida Initiative Panel.

Congressman Silvestre Reyes speaking at the Congressional Reception. From left to right: Honorable Al Zapanta, Congressman Silvestre Reyes and Congressman Mike McCaul.

Panel #3: Strengthening U.S.-Mexico Security Cooperation and the Merida Initiative

BINATIONAL EVENT / EVENTO BINACIONAL

This focus of this panel discussion was to address positive developments in border security, for example, the increase of local surveillance, better training of Mexican police forces and the United States’ support for the Mexican initiative called “el mando único.” This program calls for a single chain of command for local police, similar to the command structure of the army.

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David Aguilar, Deputy Commissioner of U.S. Customs and Border Protection, assured the audience that the border is safer today than just a few months ago, thanks to the commitment of residents and border protection officials to safeguarding against illegal immigration and organized crime. In conclusion, the XV Annual U.S.-Mexico Congressional Border Issues Conference, as in previous years, was a complete success. More than 280 guests—including members of Congress from several states, and business men and women from both sides of the border— attended the conference. They were educated about the challenges that the U.S.-Mexico border region faces every day, but also what actions are taking place to improve the situation. Participants left with a generally optimistic and hopeful attitude about the opportunities that lie ahead. Presenters: U.S. House of Representatives • Rep. Silvestre Reyes (D-TX)

• Rep. Mike McCaul (R-TX) • Rep. Ruben Hinojosa (D-TX) • Rep. Bob Filner (D-CA) • Rep. Francisco Canseco (R-TX) • Rep. Henry Cuellar (D-TX) • Rep. Judy Chu (D-CA) Guests of Honor: • Mayor Juan Carlos Escamilla, City of San Luis, Arizona • Mayor Manuel de Jesús Baldenebro, Municipality of San Luis Rio Colorado, Sonora Keynote Speakers: • Secretary Janet Napolitano, U.S. Department of Homeland Security • Senator John Cornyn (R-TX) • Amb. Arturo Sarukhan, Ambassador of Mexico to the United States Moderators: • Honorable Al Zapanta, President & CEO, USMCOC • José Carreño, Invited Researcher, Centro de Diálogo y Análisis sobre América del Norte (CEDAN- ITESM Campus México) • Gerald Schwebel, Executive Vice President, International Bank of Commerce • Suzanne Petrie Liscouski, Director, Homeland Security, TASC Panelists: • Paul Weisenfeld, Senior Deputy Assistant Administrator for the Latin American and Caribbean Bureau, USAID • Veronica Escobar, El Paso County Judge • John W. Rendon, President and CEO, The Rendon Group, Inc. • Guillermo Valenzuela, Director of Aliviane, Inc. • Lucinda Vargas, New Mexico State University and Board Member, Plan Estratégico de Juárez • Matthew Rooney, Deputy Assistant Secretary, Bureau of Western Hemisphere Affairs, • U.S. Department of State • Thomas S. Winkowski, Assistant Commissioner, CBP Office of Field Operations • Antonio del Rosal, Marketing Coordinator, Mexico Tourism Board • Oscar Kuri, Director General, Coalición Empresarial Pro Libre Comercio S.C. • Martin Rojas, Vice President of Security & Operations, American Trucking Association • David Aguilar, Deputy Commissioner, U.S. Customs and Border Protection • Brian Nichols, Deputy Assistant Secretary, Bureau of International Narcotics and Law Enforcement Affairs, U.S. Department of State • William F. Wechsler, Deputy Assistant Secretary of Defense, Counternarcotics and • Global Threats, U.S. Department of Defense UNITED STATES-MEXICO CHAMBER OF COMMERCE CÁMARA DE COMERCIO MÉXICO-ESTADOS UNIDOS USMCOC Thanks its Sponsors for Supporting the:

XV Annual U.S. - Mexico Congressional Border Issues Conference March 16 - 17


Expo + Congreso GIET, Global Infrastructure & Eco-Technology El contexto de la globalización bajo el cual vivimos nos ha planteado un nuevo paradigma, hacia donde debe conducir la humanidad a nuestro planeta. Si bien, las acciones emprendidas hasta ahora nos permiten la integración de diversos factores que como resultado promueven el desarrollo y competitividad de los países, la falta de un cumplimiento adecuado de medidas que protejan al medio ambiente, puede traer como consecuencia un peligroso deterioro de la biósfera debido al alto consumo industrial generador de emisiones, así como a la falta de conciencia y acciones para controlarlo y revertirlo. El sostenido aumento en la demanda de petróleo en el mundo que ha venido de la mano de turbulencias provocadas por aspectos políticos en algunos países productores, lo vemos reflejado en los niveles actuales de precio del barril. Pero también vemos como esa creciente demanda para satisfacer procesos productivos que se traducen en bienes de consumo (y el impacto que su uso genera en el medio ambiente), nos arroja una interrogante importante: ¿qué soluciones habremos de plantear para disminuir la huella que nuestras acciones dejan en el medio ambiente? Ante dicha problemática, nos enfrentamos a una nueva era en la que la búsqueda de soluciones para hacer mas eficiente el uso de recursos no renovables ya no es la única opción. Hoy, la coyuntura nos obliga a encontrar o desarrollar medios renovables que conlleven procesos limpios y un bienestar social. El termino “sustentabilidad” se ha vuelto un vocablo de uso cotidiano entre personas, empresas y gobiernos. Algunos lo han sabido implementar de manera correcta; sin embargo, otros simplemente no han comprendido la profundidad de su significado. Sustentabilidad se refiere a la realización de acciones que en su conjunto promueven un beneficio económico, ambiental y social. Con el equilibrio de estos tres factores, se busca satisfacer las acciones del presente sin poner en riesgo la capacidad de las generaciones futuras para satisfacer sus propias necesidades. La preocupación del cambio climático, que ha estado presente desde hace varias décadas, hoy parece tomar un camino que nos obliga a adoptar acciones contundentes para disminuir su avance. Los gobiernos canalizan más estímulos económicos para promover la investigación y desarrollo tecnológico, las instituciones académicas promueven la formación de jóvenes con

una responsabilidad social-ambiental y las empresas alinean sus estrategias de negocios a los principios del desarrollo sustentable, entonces ¿cuál es el eslabón que falta para hacer que esta dinámica funcione? Ante la amenaza inminente del calentamiento global, el gobierno de nuestro país en conjunto con los fondos de vivienda viene trabajando esquemas de financiamiento denominados “Hipotecas Verdes” para implementar el uso de eco tecnologías de manera obligatoria a partir del 2011 en los desarrollos de vivienda. Pero la causa ambiental ya no es la única condición que queda en la mesa. Este movimiento procura un impulso social a través del acercamiento de las tecnologías de la información a dicho sector que serán a partir de hoy un servicio indiscutible que ayudará a cerrar la brecha cultural que existe en nuestro país.

La Cámara de Comercio México-Estados Unidos, Capítulo Valle de México, hace extensiva a los lectores de esta edición la invitación al 1° Expo + Congreso GIET, Global Infrastructure & Eco-Technology, que se llevará a acabo el 28 y 29 de junio de 2011 en el Centro de Exposiciones y Convenciones, World Trade Center, de la Ciudad de México.

La Expo + Congreso GIET es un evento enfocado a la Construcción Sustentable que reúne a proveedores tecnológicos en los campos de energía renovable, tratamiento de agua, automatización, y materiales sustentables para la construcción. Para el Congreso, se convoca a la Iniciativa Privada, Gobierno, Instituciones Académicas, Organismos Promotores de Investigación y Desarrollo, Consultores de Gestión Ambiental, Bancos, Fondos de Capital, entre otros. Hoy, las premisas en la construcción han cambiado. Queda en la sociedad el compromiso de generar una cultura de construcción mediante el uso de insumos competitivos con un impacto “cero” al medio ambiente. José Andrés García R. Director de Desarrollo de Negocios USMCOC Capítulo Valle de México Alfredo Bortot Acosta 1° Expo + Congreso GIET, Global Infrastructure & Eco-Technology www.expogiet.com

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FONATUR, TOURISM INVESTMENT OPPORTUNITIES IN MEXICO THE COVER / ARTÍCULO DE PORTADA

HISTORY

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ver thirty-five years ago, in the 1970s, the Central Bank of Mexico (Banco de México) created an organization that would facilitate the growth of tourism to drive the county’s economy. As a result, it created the Fondo de Infraestructura (Infrastructure Fund), and subsequently, the Fund for the Guarantee and Promotion of Tourism in collaboration with Nacional Financiera (NAFIN). This partnership became the National Trust Fund for Tourism Development (FONATUR) which builds infrastructure in areas targeted for development. To date, the fund has many success stories at several destinations positioned throughout the country, Cancun arguably the most successful, bringing in 60 percent of the national tourism revenue. In recent decades, 73 million foreign guests have stayed in hotels established in FONATUR destinations, and $2 billion have been invested, with private revenue close to $15 billion USD.

Planning, which is the cornerstone of FONATUR’s work, is geared toward strengthening public-private partnerships, as well as encouraging greater collaboration between local and national authorities. The organization’s vision is to drive development for medium and long-term projects. Because of this, there are significant changes in destinations such as Los Cabos, Loreto, Cancun, Ixtapa and Huatulco, where infrastructure was created after the acquisition of land reserved for the development of private projects. This vision has also maximized effects of the economic spillover. Development of new tourist destinations in the targeted towns creates jobs and builds infrastructure, thus improving the quality of life of the residents. This planning is not limited only to the construction of lodging and entertainment such as hotels, restaurants, shopping centers, etc., but also includes construction of housing for workers and improvement of existing homes.


FONATUR stands as one of the country´s major pillars for sustained development, since all its destinations have a longterm vision based on environmental and social responsibility. Through its Integrally-Planned Resorts, (CIPs), and other projects, FONATUR paves the way for growth of a country with a green and equitable economy and sustainable regional growth as well. Mexico is positioned as an exceptional international host country; a country with one of the most varied and sophisticated cuisines in the world, impressive pre-Hispanic and colonial architecture, and a rich cultural atmosphere welcoming visitors. FONATUR enhances these strengths, setting up more and better destinations in the country COUNSELING AND CERTIFICATION OF QUALITY PROGRAM FONATUR´s Counseling and Certification of Quality program provides national and foreign investors more than 36 years of expertise in specialized areas of the real estate and tourism industries. The program’s objective is to assess and guide investors and developers through every stage of their projects ensuring they meet FONATUR’s standards of quality. This program seeks to provide support to private initiatives in the construction of world-class resorts in Mexico. Among the many benefits provided by a FONATUR certification are advertising and marketing of the project, as well as promotion with investors of the fund. To obtain this certification, the project must comply with the guidelines set out in FONATUR´s “Quality Deputy Directorate Manual of Policies and Procedures”, as well as FONATUR´s Business Model of Assessment and Certification of Quality Procedure and Provision of Services. The process has three stages:

The Eligibility Decision reviews five points: • Regional environment • Market • Technical and feasibility • Legal • Financial aspects Advisory phase: this is where the project is conceptualized. It consists of granting an activities program, approved by the Certification Committee, a detailed advisory through the coordination, development and monitoring of the program, as well as the information submitted by the interested party. At that point, the guidelines that the project must comply with will be determined and, once completed, the Certification Committee will issue the findings to develop an Advisory Decision and another activities program for the Certification Phase.

THE COVER / ARTÍCULO DE PORTADA

Eligibility stage: this is a stage of integration to provide the developer with data such as legal description and viability, land tenure, and information about the project from technical, financial and commercial perspectives. With this, an analysis of the overall structure of the real estate tourist project is provided to determine if it is a suitable candidate to move on to Advisory Phase.

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THE COVER / ARTÍCULO DE PORTADA

The Advisory Phase consists of three main pivotal points: • Project feasibility • Project development • Project marketing

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monthly payments without interest, and the remaining balance up to eight years; 2) a single ten percent down payment and the remaining balance up to eight years; and 3) the third option by paying the total value of the lot in 12 monthly payments without interest.

Certification phase: after a preliminary analysis of the Advisory Decision and the activities program of the Certification Phase, the Committee may approve the certification of the project once the instructions proposed in the Advisory Phase are completed.

For the first two financing products, FONATUR offers belowmarket interest rates for investment in Los Cabos, Loreto, Cancun, Cozumel, Ixtapa, Huatulco and Nayarit.

MOMENTO FONATUR

FONATUR LAUNCHES MARINA COZUMEL

With a visionary and creative orientation, the Integrally-Planned FONATUR has launched Marina Cozumel, one of the most Resorts have adopted the most modern international tourism important integrated urbanization projects in the Caribbean trends that attract innovative forms of investment and in an effort to promote and establish Cozumel as a a growing number of new players in the tourism world-class resort. industry. “The IntegrallyThe objective was clear: to establish a Planned Resorts Thanks to its great achievements, aimed at tourist corridor for cruise ship passengers energizing the economic spillover in our other visitors with amenities that have adopted the most and country, FONATUR grants resources to provide fun, comfort and safety in investors and families for purchasing lots in the enjoyment of water sports and modern international places such as Cancun, Los Cabos, Ixtapa, activities. The plan seeks to improve Loreto, Huatulco and Nayarit, through the tourism trends that attract the municipality´s image and integrate it promotional campaign, Momento FONATUR. into the Caribbean´s coastal destinations. innovative forms of This program offers greater flexibility by means It also seeks to complement the island´s of three financing options: 1) making a down tourism industry by attracting new segments investment” payment of 30 percent of the lot’s total value at 12 of the market.


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THE COVER / ARTÍCULO DE PORTADA


There will be many recreational activities available at Marina Cozumel: beach club, house club, restaurants, sports fields and “El Aerolito” theme park. One of the most ambitious aspects of the project is a marina with a capacity for 333 boats ranging in length from 15 to 150 feet, a refueling area, dry dock, port authority, yacht club and area for workshops, as well as dedicated space for 150 nautical services providers. This is how Marina Cozumel is shaping up as a model project for the tourism industry along the Mayan Riviera.

The region features several natural attractions, boasts yearround warm temperatures, spectacular natural reefs, rainforest, and mangroves that are home to a wide range of exotic wildlife. Among Cozumel’s cultural assets are an archaeological site, beautiful regional architecture and traditional Mexican festivities.

For further information contact us at: Ph: +52 (55) 5090-4494 Toll free (US) 1-877-847-8183

This one-of-a-kind project will optimize access to the island to promote tourism and increase investment. Marina Cozumel will present an attractive opportunity for local and international investors. Bids will be accepted for the development of new hotels; small, medium and large business developments and condos. This new development will also include a number of lots for residential housing. Marina Cozumel is comprised of a total area of more than 100 acres, 50 percent of which are marketable lots. The project has a total capacity of 1,622 rooms of which 572 intended for hotel use and 525 are projected as part of residential housing. The project will be sold in four phases, staged six months apart, beginning in 2011 and running through the end of 2012.

THE COVER / ARTÍCULO DE PORTADA

It is conveniently located—just five miles from Cozumel’s international airport, a 10-minute journey. For visitors who arrive at the Puerta Maya cruise port, the development is a short fiveminute walk.

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CHAPTER ACTIVITIES... ACTIVIDADES DEL CAPÍTULO...

Southwest Chapter. Dallas, TX & Golfo Chapter. Veracruz, Ver

Northeast Chapter. New York, NY

Michoacán Chapter. Morelia, Mich.

Inter-American. Miami, FL

Guanajuato Chapter. León, Gto. 23


Southwest Chapter. SOUTHWEST CHAPTER HOLDS NATIONS UNITED SUMMIT

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he United States-Mexico Chamber of Commerce, Southwest Chapter of Dallas, Texas, held the third Annual Business Summit with Veracruz, Mexico on March 31. The Nations United Alliance Summit includes Texas, Mexico and Canada. The SW Chapter thanks the U.S.-Mexico Chamber of Commerce, Golfo Capitulo of Veracruz, Mexico, its president Andres Quaila, and executive director, Jorge Alejandro Vega, for their support of international business that helps the private and public sector. We also thank past governor, Fidel Herrera Beltran, and David Velasco Chedraui for their ongoing assistance throughout the years; and Eric Porres, the present Secretary of Economic Development for Veracruz, who spoke at our conference this year.

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPĂ?TULO

The Dallas and Veracruz Chambers recognize Ponciano Ruiz Tanus, Assessor for Governor Duarte from the State of Veracruz and International Chairman for both chambers. He worked diligently with both chambers for over three years. He earned his title due to his professional bicultural expertise, his international business vision for Veracruz and his follow through with progressive action.

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facilitated the formation of joint ventures in investment, funding, commercial tourism, medical tourism, education and EB5 visas. REES Architects Look to Invest in Veracruz According to Dr. Frank Rees, Chairman and CEO of Rees Associates, Inc., REES architects of Dallas, specializing in commercial, healthcare, senior living, higher education and broadcast buildings, is looking to invest in Mexico via European investors and is currently evaluating a joint venture between Dallas and Veracruz. REES has offices in Mexico City, Dallas, Oklahoma, Atlanta, Houston, San Francisco, San Antonio, Spokane and Indianapolis. Investment and Funding WESTAR Trade Resources founder and CEO, Cindy Thyfault, a specialist in international joint ventures, is presently working with business owners from Mexico and Dallas for Veracruz Projects. Thyfault works directly with international funders like OPIC (Overseas Private Investment Corporation) and EX-IM Bank (Export Import Bank of the US) which are private and public sources for investment.

The Summit accomplished the following: provided an atmosphere of openness and creative communication via roundtables with discussion on building international business alliances; and

Investment Project Roundtable

Ponciano R. Tanus being presented a check for $2,000 from Rev. Monsignor Don Zimmerman from Christ The King Church, Dallas, TX., Executive Director, Josie F. Orosco and visiting Priest.

Ponciano Ruiz Tanus presenting check for educational scholarships to Benedictine monks in Veracruz, Mexico.

Project 1000 Houses is presently working on a project for Veracruz


Dallas, TX & Golfo Chapter. Veracruz, Ver

and Dallas that is eligible for WESTAR assistance as its focus is on renewable energy via solar, wind, or thermal energy which meet the funding criteria. Sara Luz Herrera Cano, mayor of Alvarado, is already working on project with Dallas representatives. Commercial Tourism Panels Tourism for Veracruz was presented by David Cuevas, Director of Tourism, and Guadalupe Martinez, Dir. Gen. of Culture, who together discussed potential tourism investments and projects. Additionally, the mayor of Alvarado, Sara Cano, reviewed locations for future communities and resorts that are well-suited for joint ventures for WESTAR, REES Architects and other investors.

Dr. Frank Rees Chairman and CEO of Rees Associates, Inc. He is working on International Projects in Veracruz, Mexico

heads the Vatican Hospital Project and is the Vatican Envoy. He and Josie Orosco, executive director of the SW Chapter, worked together on the project. Orosco arranged for a $2,000 scholarship from Christ the King Catholic Church and Monsignor Don Zimmerman to implement the program. EB5 VISA Program Business Visas for Mexico are available via investment in Dallas, Texas.

Medical Tourism Roundtable Adriane Wilson, marketing director for Texas Institute for Surgery, and Jon Krumerman, M.D., both members of a 13-hospital affiliation in Dallas, discussed forming a business alliance with Veracruz doctors to exchange patients between medical doctors in Mexico and specialists in Dallas. Ponciano Ruiz Tanus; David Cuevas, Veracruz Director of Tourism; Guadalupe Martinez, Veracruz Director General of Culture and Festivals; and Gabriel Molina, Liason for Alvarado, participated in a strategy roundtable for tourism and medical tourism. Hospitals, Education and Scholarships for Veracruz Pope Benedict issued a request for international donations from the United States for the building of three hospitals and for educational scholarships at the Vatican. Ponciano Ruiz Tanus

Guadalupe Martinez Sedano, Veracruz Director of Tourism- for Tourists and Business, Eric Porres, Secretary of Economic Development, Sara Luz Herrera Cano, Mayor of Alvarado, Veracruz, Ponciano Ruiz Tanus, Governors Assesor and Gabriel Molina,Enlace de Ayudamiento de Alvarado.

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPĂ?TULO

Gabriel Molina, Liason for Alvarado; Guadalupe Martinez Sedano, Dir. Culture; David Cuevas Garcia, Dir. Tourism; Sara Luz Herrera Cano, mayor of Alvarado; Don Cramer, Jr. Texcon; Josie Orosco, Director USMCOC; Don Cramer, Sr. I. Ponciano Ruiz Tanus, Advisor, Governor of Veracurz

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Northeast Chapter. New York, NY PAST CONFERENCES AND EVENTS OF THE NORTHEAST CHAPTER (NEW YORK)

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hrough the organization of forums, seminars and conferences, the Northeast Chapter provides its members with networking, marketing and informational tools for the strengthening and development of business liaisons and opportunities between our countries. Below are descriptions of events that took place in New York City from November 19, 2010 to March 25, 2011, for upcoming events visit us at www.usmcocne.org/events.php Bicentennial of Mexico’s Independence and the Centennial of the Mexican Revolution (Nov. 19, 2010) Around 200 guests, including the Acting Consul General of Mexico in New York and representatives from the office of the Mayor of New York City, participated in a gala to celebrate the Bicentennial of Mexico’s Independence and the Centennial of the Mexican Revolution. Dinner was prepared by renowned chefs Jason Munger and Osvaldo Garrido accompanied by a Mexican bar courtesy of Tequila Jose Cuervo, XX Lager and LA Cetto’s wines. Guests were able to enjoy jazz music by Mexican Grammy nominee Magos Herrera and live Mariachi music performed by Mariachi Bustamante.

The panelists were Jeffrey S. Passel, PEW Research Center; Douglas Darfield, Nielsen Company; Mary Giovagnoli, Immigration Policy Institute; and Deborah Notkin, Barst Mukamal & Kleiner. Mexico’s Pension Fund System: Evolution, Regulation and Business Opportunities (Dec. 3, 2010) In December, BNY Mellon hosted a conference on Mexico’s Pension Fund System. Some of the topics addressed during the conference included the analysis and evolution of the regulatory framework, business opportunities for foreign entities, publicly traded investments and securities designed for Mexican Pension Funds and real estate investments of Mexican Pension Funds. Speakers included Pedro Ordorica Leñero, President of the Mexican Commission of the Pension Fund System (CONSAR); Xavier de Uriarte, Vice President of the Mexican Association of Pension Fund Administrators (AMAFORE); Javier Murcio, Deputy Portfolio Manager and Senior Sovereign Analyst from Standish; Ramon Guemez Same, Investor Relations Director for the Mexican Stock Exchange; and Blanca Rodriguez, Managing Director of Rockwood Real Estate Advisors.

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

Next fall, a follow up event on the Mexican Pension Fund System will be also held in New York City.

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Why Mexico, Why Now? Mexican Private Equity Venture Capital Industry Success Stories and Opportunities (Jan. 28, 2011) More than 150 people gathered on the premises of The Union League Club in Manhattan to attend an informative conference on the Mexican Private Equity and Venture Capital industry. Magos Herrera, Singer

Fifth Annual Hispanic Market Forum (Dec. 2, 2010) The event was hosted on the premises of Chadbourne & Parke and in association with the Colombian-American Association, Ecuadorian-American Association, Peruvian-American Association, and Venezuelan American Association of the U.S. The attendees to the conference heard a concise analysis on new developments and trends in the Hispanic market, including statistics and demographics of the Hispanic population in the U.S., marketing strategies and consumer trends.

Among the topics discussed were Mexico’s current position and macro-economic perspectives, improvements to the investment regulatory framework and incentives for foreign investments, Mexico’s competitiveness vis-à-vis BRIC countries and other emerging economies, success stories in foreign and domestic direct investment in Mexico, current situation and perspectives for private equity and venture capital funds and the role of Nacional Financiera and Mexico’s Fund of Funds, and success stories and investment opportunities for foreign investors in private equity and venture capital in Mexico. Speakers included Hector Rangel Domene, Director General of Nacional Financiera (NAFIN); Lorenza Martinez, Mexico’s Undersecretary of Economy; Luis Tellez, President of the Mexican


Claudio X. Gonzalez, Kimberly Clark México

Stock Exchange; Robert Newell, CEO of the Mexico Institute for Competitiveness; and Claudio X. Gonzalez, Chairman of the Board for Kimberly Clark Mexico. The event was co-organized by NAFIN and Promexico, hosted by Curtis, Mallet-Prevost, Colt & Mosle and sponsored by Mexico Fund of Funds and McKinsey & Company. Business Roundtable with Carlos Guzman, CEO, ProMexico (Feb. 8, 2011) In a presentation hosted by the law firm Jones Day, Carlos Guzman, CEO of ProMexico, discussed business opportunities in different areas and industries in Mexico. During a Q&A session following his remarks, he responded to questions and concerns of Chamber members regarding ongoing and new investment projects in Mexico. Guzman and the U.S.-Mexico Chamber of Commerce restated their commitment to work together on the promotion and facilitation of investments and trade between Mexico and the United States.

Luis Tellez, Mexican Stock Exchange

Guests were welcomed by Ariel Cano, President of the National Housing Commission. H.E. Felipe Calderon, President of Mexico spoke through a video message to the audience. Ernesto Cordero, Minister of Finance, addressed the economic perspectives of Mexico in the year 2011. Also speaking: Ignacio Deschamps, President of the Mexican Banking Association; Javier Gavito, CEO Sociedad Hipotecaria Federal; Manuel Perez Cardenas, Executive Director of Fondo de la Vivienda del Instituto de la Seguridad y Servicio Social de los Trabajadores del Estado; Carlos Lozano, Coordinator of Conferencia Nacional de Gobernadores; Victor Borras, CEO of Instituto del Fondo Nacional de la Vivienda para los Trabajadores; Luis Orvanos, CEO and Chairman of the Board of Geo. Trends in Corporate and Project Financing in Mexico (Mar. 25, 2011)

Mexican Housing Day 2011 (Feb. 10, 2011)

As part of a series of conferences organized by the Northeast Chapter on financial issues, a session to analyze the funding sources and the evolution of the financing in Mexico was held in March 2010 in the New York office of McKinsey & Company.

For the third consecutive year, the USMCOCNE co-organized the Mexican Housing Day in New York. The Waldorf Astoria became the venue for more than 360 attendees at this event that was co-organized by the most important housing developers in Mexico: Homex, Ara, Urbi, Sare, Geo and Hogar.

The speakers that participated in this conference were Antonio Martinez, McKinsey & Company; Heleodoro Ruiz, Mexican Banks Association (ABM); Javier Gavito, Sociedad Hipotecaria Federal (SHIF); Javier Artigas, Mexican Stock Exchange (BMV Group), and Juan de Mollein, Standard & Poor’s.

Ernesto Cordero, Minister of Finance

More than 360 attendees

Message from H.E. Felipe Calderón Hinojosa

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

Héctor Rangel Domene, Nacional Financiera (NAFIN)

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Inter-American. Miami, FL THE INTER-AMERICAN CHAPTER’S 2011 ANNUAL MEMBERS’ RECEPTION

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he Inter-American Chapter, headquartered in Miami, Florida, celebrated its 2011 Annual Members’ Reception in the beautiful offices of K & L Gates Law offices at The Wachovia Center in downtown Miami. Our new board member and Miami lawyer Karen Salas, hosted this great networking event.

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

During the reception, Chapter President Michael Ronan introduced members of the 2011 board of directors, and committee members.

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Board of Directors: • Aeromexico • Broad and Cassel • Robert Allen Law • Morgan Stanley • Innova College • Citigroup • HSBC Bank • Greenberg & Traurig • HBO Latam • Hewlett Packard • Grupo Perca • Promexico • Royal Caribbean • Ryder Logistics • Visa International • Campion Law • K&L Gates Law • Republica Advertising Agency • Business Action Coach USA. The Chapter’s Executive Committee: • President: Michael Ronan, vice

president Royal Caribbean Cruise Lines • Vice President: Robert Allen, attorney, Robert Allen Law • Secretary: Ricardo Aizenman, Citigroup • Treasurer: David Rosenberg, attorney, Broad & Cassel Law Events Committee: • Eileen Vedel Cueva, HSBC Bank • Jeff Campion, Campion Law • Karim Abud, Republica Advertising Agency • Karen Salas, K & L Gates Law

Members Annual Reception Cocktail.

Elena Maribona, Gabriela Torrente and Luz Maria Iruretagoyena

Consul General of Mexico with Mexican actor Bernhart Seifert and the Merry Lynch international team.

Mike Ronan, Inter-American Chapter’s President. Royal Caribbean’s VicePresident for Governments Affairs

Ambassador Miguel Gutierrez-Tinoco, Consul General of Mexico in Miami.

Membership Committee: • Ricardo Aizenman, Citigroup • Jorge Carstensens, Royal Bank of Canada • Gabriel Parra, Aeromexico • Ana Paula Lagarriga, Action Coach

Chapter’s XIII Anniversary aboard Oasis of the Seas Cruise Liner The Inter-American Chapter celebrated its XIII Anniversary on Saturday, May 7 on board the magnificent Oasis of the Seas cruise ship. The event coincided with the International Kick off of “Mayan World: 2012” (The ending or the beginning of an era?) During this event, our board of directors recognized key players of the Florida-Mexico trade arena including Televisa, Walmart, Miami Dade Community College and Cabi Group. For more information contact interamerican@usmcoc.org or (305) 374-7401

Oasis of the Seas.


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Michoacán Chapter. Morelia, Mich. TRABAJANDO FUERTEMENTE Continúa el Proyecto para el Desarrollo Integral de Michoacán

Alliance, en la mejor posición

uvo verificativo una reunión de trabajo en las instalaciones del Tec de Monterrey Campus Morelia, donde se reeligió la nueva mesa directiva de la Fundación para el Desarrollo de Michoacán, anunciándose asimismo la recepción de la primera partida de recursos para financiar el Proyecto para el Desarrollo Integral de Michoacán. El evento fue dirigido por el presidente de la Fundación y Vicepresidente de la USMCOC, Roberto Ramírez.

La Expo Estatal Industrial y Comercial y PYMES en Michoacán contó con la presencia del Presidente de la República, Felipe Calderón, quien acudió a la cita para la inauguración de la misma. La USMCOC Michoacán participó a través de su presidente, el Ing. Ortíz, quien tuvo oportunidad de saludarlo y hablarle de los trabajos realizados por la Cámara en los últimos meses, encontrando oportunidad de obsequiarle los últimos y más recientes números de la revista Alliance, que amablemente aceptó.

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Cuentas claras La iniciativa privada de Michoacán fue invitada por los senadores federales del PAN a la presentación de los recursos obtenidos para los diferentes municipios del Estado; según mencionaron fue una cifra récord. El presidente de la USMCOC Michoacán, Nicandro Ortiz, y el Vicepresidente, Roberto Ramírez, así como su tesorero, el Contador Rodríguez fueron invitados. El evento fue presidido por la líder de la bancada panista, Josefina Vázquez Mota quien al finalizar la reunión, tuvo una sesión de preguntas televisada, con asistencia de la prensa y personalidades del sector público y privado.

EL Presidente de la Republica Lic. Felipe Calderon Hinojosa visito los stands dentro del evento de ignauracion de PYMES en la ciudad de Morelia. El Ing. Nicandro Ortiz haciendo una breve presentacion del trabajo del capitulo de la USMCOC Mich asi como la entrega de las ultimas ediciones de la revista de la USMCOC “Alliance”.

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

Guanajuato Chapter. León, Gto.

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JUGANDO LIMPIO

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l Centro de Producción más Limpia del Bajío (CPLB) en coordinación con el municipio de León, Gto., a través de la Dirección de Medio Ambiente Sustentable, colaboraron y certificaron a cincuenta empresas del municipio de León, en el programa federal denominado “Liderazgo ambiental para la competitividad”; el proyecto es dirigido y coordinado por la Secretaría de Medio Ambiente y Recursos Naturales, teniendo por objetivo primordial que empresas de diferentes sectores sean más competitivas y por ende más amigables con el medio ambiente. El día 15 de diciembre del 2010 se entregaron los reconocimientos respectivos en presidencia municipal. En este 2011 el CPLB continúa promoviendo y capacitando a más empresas dentro del programa de liderazgo ambiental. Pueden participar en el proyecto —que cuenta con asistencia técnica y capacitación sin costo para las empresas afiliadas a la Cámara

capítulo Guanajuato— todas aquellas pequeñas y medianas empresas de la industria manufacturera o de la transformación que cuenten con al menos 25 empleados. La empresas participante además de obtener una mejor relación con el medio ambiente, también consegurán mas beneficios como el establecer nuevas relaciones de negocios, mejorar las que ya tienen con sus clientes y proveedores, desarrollar nuevas capacidades para identificar, diseñar e implementar proyectos de mejora, reducir los costos por ahorro de materias primas, agua y/o energía, reducir los tiempos de producción, aumentar la productividad, mejorar el desempeño ambiental, reducir los riesgos a la salud y al ambiente y obtener reconocimiento. Para mayor los interesados pueden contactarse con Sergio Ponce López, Director Ejecutivo del Capítulo Guanajuato.


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Mexico Tourism Industry Perspective 2011

By Bruce D. Greenberg, FRICS, MAI, SRA, ASA President of Montaña Verde Consultores and Valuadores, SRL de CV

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exico matured has a popular tourist destination due to its close proximity to the United States and Canada, attractive and familiar culture, incredible hospitality, and most importantly, its affordability. Over the past several years there have been both successes and challenges and the future appears to offer more. This article explores several issues relevant to promoting growth in tourism. Tourism before the Crisis

OPINION / OPINIÓN

Between the years 2002 and 2008, Mexico grew to become the tenth largest travel destination in the world, according to The Economist Magazine. Consequently, we, as the tourism sector of Mexico, became too confident and comfortable in our success. When the global crisis struck in 2008, Mexico was no longer the affordable tourist destination it was once known for.

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During that period, the tourism in Mexico was up and participants within the industry were making unprecedented profits. Developers were achieving fifty, sixty, up to one hundred percent or more, returns on their investments. Taxis in Los Cabos and Cancun were charging—and continue to charge—as much for their taxi fare from the airport to the hotel as ‘it’ they spend on airfare; restaurants competed to become the place in town and forgot the appeal of the affordable family vacation.

In today’s economic climate, we must learn how to share the road with the rest of the countries who compete with Mexico as affordable destinations. It is important for us to remember that within the past three years, most families in the United States lost around forty percent of their net worth in deflated real estate values and the collapse of the stock market. In 2011 and beyond, we can no longer depend on the U.S. traveler to take money out of their bank account or home equity to enjoy a luxurious five-star vacation or to purchase their dream vacation home. The Real Estate Market Mexico has an overwhelming supply of new housing in the tourist sector but the number of these units is not the concern for 2011. Builders and developers need to recognize and understand the inventory of the resale market to truly understand expected absorption rates. Developers are competing against homeowners who purchased with all cash, and those who owned before 2006 can afford to be more flexible in their sales price than a developer with extensive supply and overhead. To better understand these demands, the banks, lending institutions, developer associations, municipal government officials, AMPI and other real estate professionals need to work together to better share information as an industry. We are stronger as a united group than any of us are as a lone rogue warrior.


I strongly encourage municipalities to come together and stand up against the builders who have saturated their marketplaces. Although I understand the controversy behind this position, it is urgent that our municipalities strengthen their regulations to reign in approval of permits for new developments, especially for the very cautious foreign market that has seen millions of dollars of deposits vanish in this last cycle. Media Influence The year 2011 will continue to bring tough challenges, as many news publications continue to report concerns about the safety of Mexico as a feasible and secure investment. Martin Hutchinson is quoted in his December 7, 2010 article in Money Morning publication discussing this issue. He stated, “The presidential election due in 2012 is a frightening prospect, with two of the three major parties likely to make things worse, instead of better.” The average international investor does not know the details of Mexican politics, and these types of articles discourage foreign investment. This message communicates that Mexico is not a secure investment for the next eight years. Today’s 24/7 media is extremely competitive and frequently resorts to “if it bleeds, it leads” features to build the audience. With regard to Mexico, reporting often focuses on the violence of the cartels and exaggerates the lack of leadership from the local to national levels of government, creating a state of fear about traveling to, or living in the country.

Both the federal government and private sector must use their combined political strength to attract and promote these celebrities’ enjoyment of the country and their confidence in their own safety. Medical Tourism Jonathan Edelheit, President of the Medical Tourism Association, stated that by the year 2017, more than 23 million patients from the U.S. alone will spend nearly $80 billion for medical services outside the United States. Today, Mexico is unfortunately not ranked in the top ten service providers for medical tourism, despite its quality medical care and proximity to the U.S. market. There is a great opportunity for Mexico’s government and the private sector to work together to grow the nation’s economy. In basic financial terms, 23 million patients equates to 23 million opportunities annually to provide lodging, food, transportation, and medical services. Mexico must mature as a respected medical tourism destination in order to grow as a long-term retirement destination. Both Mexico’s private and public sectors must work in partnership to ensure they are not left out of this growing industry. Mexico was successful in growing its tourism revenue 19 percent in 2010 despite the slow U.S. economy and the publicity of cartel violence. Unfortunately, the U.S. economy continues to suffer and unemployment remains high. The year 2011 will continue to be a year of readjustment and, as an industry, we must prepare for great growth to be achieved in 2012 and 2013.

Promotion Possibilities

But, for many celebrities and Hollywood stars such as Jennifer Aniston, Seal and Heidi Klum, Kobe Bryant, John Travolta, Sammy Hagar and Enrique Iglesias, Mexico is still the location of choice. These icons are photographed sunbathing in their favorite resorts, visiting their own luxurious second homes, or investing directly in tourism. It is necessary to publicize the stories of those who see past the exaggerations of the media and travel to Mexico without concerns.

OPINION / OPINIÓN

In the 1950s, celebrities such as Frank Sinatra and Elizabeth Taylor would flock to Mexico’s coastlines, the media would follow them and then tourists would travel in their footsteps. At that time, Mexico was far from being considered an economic threat to the United States. Today, Mexico competes on a global platform with the United States and its union jobs; therefore, in return, the U.S.’s media does not show the beauty of the country as it used to.

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The New Face of Medical Travel: U.S. Insurers Seek Connections with International Hospitals

By Sandra Miller Chief Marketing Officer at Health Travel Guides

The New Face of Medical Travel

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he growth of the medical travel industry continues to make headlines, most recently when a Silicon Valley entrepreneur team won the prestigious new startup business competition at the famous Austin Texas-based SXSW festival and tradeshow this past March. The competition featured 38 high-octane teams who presented their ideas to a panel of six judges, each representing venture capital and angel investment firms. The winning idea: a medical travel business focused on fixing the inefficiencies of the $20 billion medical tourism market. The promise of medical tourism is a bit like the promise of a bumper crop of fruit growing in a grove of hundred-foot palm trees. Lacking a good system for harvesting the fruit, hospitals end up making a living on what falls to the ground.

OPINION / OPINIÓN

Where Insurance Fits In

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In many ways, medical tourism is an industry spawned by certain unpleasant realities of the U.S. health insurance system; people unable to get coverage or facing high out-of-pocket costs find their health care dollar stretches farther when they are farther away from home. Medical travel is no longer an industry driven by elective cosmetic surgery and dental procedures. Increasingly, medical travel is spurred

by U.S. medical device makers (for example Allergan and BioHeart) opting to treat patients abroad as they finalize the slow-moving FDA approval process, the industry is rapidly growing to include people seeking treatments that are not yet available in their home country. Allergan is an early example of this trend, releasing its LAP-BAND product in Mexico a full five years before FDA approval in the U.S., resulting in an estimated 10,000 patients crossing the border from the United States to get the procedure. Integrative cancer treatment, hip replacement and stem cell therapies are just a few areas of medical innovation drawing thousands of U.S. and Canadian patients abroad to places like Germany, Bulgaria, Costa Rica, and, increasingly, Mexico. “Ten years from now, we’ll all get on planes and fly somewhere to get treated,” said a healthcare investment group in a New York Times article on the trend, “Medical Treatment Out of Reach.” As a result, some international hospitals are treating three times the number of international patients they treated just last year, and are experiencing increasing pressure from U.S. and Canadian patients for assistance with insurance processing. Companies like Health Travel Technologies have sprung up to serve this need, providing Mexican hospitals and groups such as Grupo Angeles and Amexus with international electronic business systems that eliminate the borders between the Mexico health care provider and U.S. patients, their doctors and insurance companies.


Systems like Health Travel Technologies enable Mexican hospitals to work seamlessly with international patients, setting up consults, transferring medical records, booking procedures on specific surgeon calendars, and paying for and receiving receipts for treatment. The role of insurance itself will continue to evolve as the medical travel industry continues to grow, with three main growth drivers: 1. Big insurers are experimenting with medical travel, for example, Blue Cross of South Carolina operates the medical travel facilitation company Companion Global Health, which features six limited benefit health insurance plans covering patients at more than 25 global medical centers. 2. International hospital partnerships like Johns Hopkins and Punta Pacifica, and Mexico’s ABC Hospital and Houston Methodist Hospital System of Houston, will increase the credibility of, and demand for, medical travel services. 3. Most significantly, we’ll see the rise of International Select Provider Associations, (ISPAs) such as California-based GMCx, which act as insurance brokers to the enormous self-funded limited medical group market in the U.S. GMCx features a network of nine international hospitals including Hospital Angeles Tijuana of Mexico, and is projected to reach one million members in 2011.

OPINION 2 / OPINIÓN 2

Each of these stakeholders is accustomed to working with sophisticated IT systems to efficiently manage business operations that can effectively scale to accommodate thousands of patients per month, including the myriad associated tasks and processes, while maintaining strong profit margins. International hospitals that take the “wait ‘til the fruit falls to the ground” approach to building their medical travel market will be left out of these growth scenarios.

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Tax Issues for the Export Manufacturing Sector in Mexico

by John A. McLees Principal in the Chicago Tax Practice Group of Baker & McKenzie

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OPINION / OPINIÓN

ompanies involved in Mexico’s manufacturing sector are adjusting to the changes introduced in the tax regime for maquiladora operations by amendments published in December to Mexico’s Maquiladora Decree (also now known as the IMMEX Decree). They are also looking ahead to the impact on the manufacturing sector of changes expected in the Mexican income tax and single rate business tax (the IETU), especially in light of a draft proposal for comprehensive tax reform floated recently by Mexico’s primary opposition party, the PRI.

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For most manufacturing companies, it continues to be highly advantageous from a tax and trade perspective to implement consignment manufacturing [fn-1] under a maquiladora program (or IMMEX program) issued pursuant to the Maquiladora Decree, for any new or existing manufacturing operation in Mexico that exports all or a portion of its output directly or indirectly to parties outside of Mexico. This is true from a global tax perspective both for profitable U.S. companies and companies with U.S. losses because of Mexico’s favorable tax rules for maquiladora operations and the unusual flexibility that the United States allows in determining the amount of payments from a U.S. principal to a Mexican maquiladora under a consignment manufacturing agreement, under the terms of the mutual agreement on maquiladora taxation between the United States and Mexico.

[fn-1] Consignment manufacturing is the arrangement used widely in the maquiladora industry under which a foreign principal owns the inventory, and often most of the machinery and equipment, used in a manufacturing operation conducted by the Mexican company and pays the Mexican company a processing fee for its manufacturing services. For these reasons and because of the flexibility that consignment manufacturing offers for gaining efficiencies in the global supply chain, the vast majority of multinationals engaged in manufacturing in Mexico in whole or in part for export utilize consignment manufacturing arrangements with a maquiladora. Many companies, especially companies in the automotive sector, that were set up with other contractual structures (sometimes under a maquiladora program or one of its predecessors, the PITEX program) have converted their operations to consignment manufacturing under a maquiladora program. Opportunities to make that conversion without loss Mexican tax benefits remain after the changes introduced in December, which were designed in part to inhibit such transformations. Ongoing Tax and Trade Issues for Maquiladoras In part because of the use of consignment manufacturing involving temporary importation of materials and components, and in part because of the complexity of cross-border supply chains that incorporate manufacturing activities in Mexico,


with the new conditions for obtaining those tax benefits and protections under the new rules [fn-2] These tax protections and benefits include: a) Exemption from having a permanent establishment in Mexico for a foreign resident that enters into a consignment manufacturing arrangement with a maquiladora, provided that the maquiladora complies with special transfer pricing regulations, and b) The combination of a special reduction of the income tax liability of the maquiladora company and a special credit against the IETU liability of the maquiladora company that together generally have the effect of providing for a combined income tax and IETU burden equal to 17.5 percent of the maquiladora’s income tax base. Among the changes that went into effect on January 1, 2011, was the elimination of the protections and benefits of the maquiladora tax regime for maquiladoras engaged in service activities not constituting transformation or repair activities, either under a separate service maquiladora program or under a service maquiladora extension of a industrial maquiladora program. A foreign company that has entered into service agreements with such a maquiladora must reexamine the risk that Mexico could attempt to subject it to Mexican income tax and IETU on the grounds that it has a permanent establishment in Mexico. There are number of new provisions that tend to undermine the legal certainty of the tax treatment of a maquiladora operation. Under one such rule if a maquiladora does not qualify as a certified company, it is now subject to new rules providing that its maquiladora can be revoked if it is subject to a tax assessment, whether or not the assessment is legally collectable and whether or not it is subject to dispute by the taxpayer.

One area that presents pitfalls for companies from a VAT and income tax perspective has to do with the disposition of scrap arising from materials, components, spare parts or tools that have been imported on a temporary basis. Tax Implications of Recent Amendments to the Maquiladora Decree The recent amendments to Article 33 of the Maquiladora Decree purport to redefine certain maquiladora operations as not constituting maquiladora operations for tax purposes only, for the purpose of denying them the special tax protections and benefits granted to all maquiladora operations under Mexican law and Presidential Decrees issued in 2003 and 2007. [fn-2] While these new rules are of doubtful validity. most companies will attempt to comply

The recent amendments to the Maquiladora Decree also made some significant changes in the trade rules for maquiladoras. These include modification of the alternatives for implementing controls to keep track of temporarily imported inventory, expansion of trade benefits for maquiladoras that qualify as “certified companies,” and tightening the rules for maquiladoras that are not certified companies and that utilize steel and other products that have now been designated as “sensitive products.” Sales and Deliveries of Maquiladora Output to Parties in Mexico Maquiladoras that deliver a portion of their output directly to parties in Mexico, without physically exporting those products from Mexico, must now use virtual pedimentos to satisfy a new requirement that such transfers must be documented with an export pedimento. The business relationships of automotive parts manufacturers in particular have been disrupted by this rule, which has arbitrarily denied them the benefits of the favorable maquiladora tax rules if they instead use transfer certificates, also known as constancias, to document the transfers of their output to their OEM customers in Mexico, as they have in the past, given that many of those customers will not accept the use of virtual pedimentos. Mexico should act to eliminate these needless disruptions in the supply chains of the most important industry in Mexico’s manufacturing sector.

OPINION / OPINIÓN

Mexico has developed special VAT rules to allow refunds of non-creditable VAT to the maquiladora and to avoid the application of noncreditable VAT on transactions of foreign companies involved in the manufacturing process in Mexico. In many cases, however, companies must exercise care in structuring transactions in order to avoid pitfalls and to benefit from these special rules, especially in light of more aggressive theories that the Mexican tax authorities have begun to apply as the basis for VAT adjustments on audit of maquiladora operations.

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Implications of the New Maquiladora Operations Other examples of the complexity and potential uncertainty that the new rules introduce into the tax regime for maquiladora operations are the complex new rules governing the ownership and prior ownership of the machinery and equipment used in maquiladora operations for maquiladoras that did not have a maquiladora program in place at the end of 2009 or that have not complied with the requirements of Article 216-bis of the income tax law. Such a maquiladora will lose the benefits of the maquiladora tax rules if at any time less than 30% of the machinery and equipment used in its operations is owned by the foreign principal, if any of the machinery and equipment owned by the foreign company and made available to the maquiladora was ever owned by the maquiladora or any related party in Mexico, or if certain other conditions are not met. The Tax Future for Export Manufacturing There are several tax issues pending in 2011 that deserve the attention of companies involved in the manufacturing sector in Mexico or considering whether to establish manufacturing operations in Mexico. These include: • The need to extend the special rules on how the IETU

OPINION / OPINIÓN

applies to maquiladoras, which are now set to expire at the end of 2011, and • The proposals that are now emerging for substantial reform of the Mexican income tax and IETU, including the possible repeal of the IETU and possible incorporation of some of its less desirable features in the income tax law.

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If the IETU remains in effect, failure to extent the favorable rules for maquiladoras under the IETU would result in a significant increase in the tax liability for most industrial maquiladoras. The most important objective for the maquiladora industry in any tax reform would be to retain its current special rules for purposes of the VAT, the income tax and the IETU. This may require strenuous efforts as has been the case several times in the past. Tax reform could also bring problems for maquiladora operations in other forms or could create additional reasons to want to qualify for the benefits and protections of the maquiladora tax regime. For example the tax reform proposals recently floated by the PRI would introduce limitations on the deductions of certain employee compensation that would increase the income tax liability of manufacturing operations because such operations employ many lower-paid workers. On the other hand, the PRl’s proposal to deny deductions for all royalty payments would increase the importance of utilizing consignment manufacturing arrangements, in which royalty payments are not required. The recent changes in the tax treatment of maquiladora operations, the need to extend the application of the current favorable IETU rules for maquiladoras to 2012 and future years, and the likelihood that discussion of tax reform in Mexico will bring new challenges all suggest the need for constant and well organized participation by companies involved in the manufacturing sector in Mexico in the effort to maintain and improve the current tax Mexican regime for maquiladora operations.


Retirement in Mexico a Business Opportunity

By Isaac Abadi Achar President & CEO, Mexico. REES architecture, Planning, Interiors

Approximately 10,500 in the U.S. retire each day, requiring about 400,000 homes per year—whether in the U.S. or in other countries— to live in after retirement. Mexico is turning into a natural destination for this population. Although the exodus may be just beginning, this is the time when visionaries will understand the needs in housing and other services. Whoever offers the best terms will be able to cash in on the biggest part of this growing market.

The opportunities for this growing industry are catching the attention of investors around the world who recognize the potential for this growing market in senior citizen services. Due to advances in medicine, life expectancy has increased and men and women will live many years after retirement requiring more and varied services.

Also, given the current value of real estate, opportunities become even better. Today, properties can be bought at much lower prices than a few years ago. With time, they will surely recover their value which can almost guarantee an equity increase in the property investment.

In Mexico, the population for people older than 60 is now over eight million people, Forecasts show that in ten years time, this number could triple to twenty-five million, seventeen percent of the country’s population.

The current business opportunities are infinite, and for this reason, investors, developers and community operators for retirees in North America are looking south for sound and solid investment opportunities.

Add to this figure the current immigration of U.S. and Canadian citizens, who, each year, consider retiring in Mexico looking for a better lifestyle at less cost. Today, Mexico houses more that 1.2 million U.S. citizens living with all the services they can receive in their home country but paying about one third what they would pay in the United States in addition to the cultural richness, geographical location and weather that many Mexican cities can offer. For all these reasons, Mexico is a very attractive option for a large number of the North American population who will retire in the coming years.

OPINION / OPINIÓN

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s the economic slowdown continues to struggle to recover, Mexico has a market niche that can be a great investment opportunity for years to come. The market for services for senior citizens has been overlooked in the past and, at this point, the demand outweighs the supply. It is time to introduce new service and delivery models into the country.

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Cross-border Trucking – Finally

BY GARY BAISE Kilpatrick Stockton, LLP. Attorneys at Law

Mexican trucks are as safe as U.S. trucks and…the [Mexican] drivers are generally safer than U.S. drivers.” This statement is not from Mexico’s President Felipe Calderon at the March 3, 2011, press conference with President Barack Obama but is from the U.S. Congress’ Congressional Research Service (“CRS”), May 6, 2009. Safety concerns regarding Mexican drivers and trucks have been used by U.S. labor groups to help destroy trade between the United States and Mexico. The CRS data prove that Mexican trucks and drivers have developed a better inspection record and fewer violations than U.S. drivers and trucks.

OPINION / OPINIÓN

Moreover, a NAFTA panel also rejected alleged safety concerns. It can be argued safety is nothing but a protectionism argument which does nothing but raise the costs of goods flowing between the United States and Mexico.

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The U.S. Chamber of Commerce claims the United States had a decline in exports of $2.6 billion and lost over 25,000 jobs as a result of President Barack Obama administration’s action in 2009 terminating a cross-border pilot trucking program which allowed Mexican trucks to transport cargo across the border. But, enough of the bad memories and history. The future of opening the border for cross-border trucking may be here! The two presidents have announced that a Mexico-U.S.

trucking agreement will be signed sometime in May or June, 2011. The first truck crossings are anticipated to occur in approximately August or September 2011. As soon as the agreement is reached and sent to Congress, Mexico has committed to ending at least $2.4 billion in tariffs on U.S. goods entering Mexico. There were no specific details released on the trucking agreement on March 3, 2011, but we can get an idea of what the future may hold based on a document issued earlier this year In January 2011, the U.S. Department of Transportation (DOT) released a concept document entitled, “Phased U.S. – Mexico Cross-border Long Haul Trucking Proposal.” The document presumably will serve as the framework to end nearly a 20-year ban on Mexican trucks entering the United States. Everyone agrees the ban is a violation of the North American Free Trade Agreement and has cost approximately $2.4 billion in tariffs imposed by Mexico annually. The Concept Document, set forth below, will establish a reciprocal phased-in pilot program which will allow Mexican trucks to operate safely in the U.S: 1. Application: Interested Mexican Carriers apply for longhaul operating. • Passenger and hazardous materials carriers will not be


included in this program. • Subject to negotiation with Mexico, the number of carrier and truck participants in first phase of program will be managed to ensure adequate oversight. 2. Vetting • Applicant carriers’ information is vetted by the Department of Homeland Security (DHS) and U.S. Department of Justice (DOJ). • Information about individual drivers from applicant carriers is vetted by DHS and DOJ.

4. Document Mexican Commercial Driver’s License process to demonstrate comparability. 5. Insurance – If PASA is successfully completed, applicant must submit evidence of financial responsibility (insurance) to Federal Motor Carrier Safety Administration.

In summary there will be no limit on trucks allowed to operate in the U.S. Trucks will be able to operate in the U.S. subject to frequent inspections for the first three months. After 18 months of inspections and a clean record Mexican trucks can permanently operate fully within U.S. borders unless safety regulations are broken. One more look at safety. Statistics from June 2008-June, 2009 show that FMCSA performed more than 220,000 inspections on Mexican trucks crossing the border during the pilot program. Results: 21.8 percent of U.S. trucks were removed from highway service for safety violations and during this same period 21.2 percent of the Mexican trucks were taken out of service. What really is interesting is that 6.9 percent of the US drivers violated safety requirements whereas only 1.2 percent of the Mexican drivers violated such requirements. May or June 2011, may finally bring forth a great step forward for citizens in both countries and create new business opportunities for both Mexican and American trucking carriers to circulate on a permanent basis in both countries as long as these safety rules are in place.

OPINION / OPINIÓN

3. Pre-Authority Safety Audit (PASA) • Review carrier’s safety management programs (vehicle maintenance, drug and alcohol testing programs, driver qualification files, etc.). • Review driving records for only those drivers who would participate in cross-border long haul operations. • Review the combined driving record of drivers who would participate in the program (U.S. driving history, Mexican federal license history, and Mexican state license history). • Inspection of each vehicle to be used in the phased-in program. • Check all participating vehicles for Federal Motor Vehicle Safety Standards (FMVSS) certification. • Check all participating vehicles for EPA emissions standards. • Conduct an English language proficiency and U.S. traffic laws knowledge test of each driver participating in the program, conducted in English. • Review of all convictions, crashes and inspections in Mexico in determining the carrier’s safety record.

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KCSM: Business without Borders

W

MEMBER HIGHLIGHTS / MIEMBRO DESTACADO

hen Mexico took up the challenge to participate in global markets more than 20 years ago, it found the urgency to modernize key infrastructure such as transportation. Kansas City Southern de México S.A. de C.V. (KCSM) took over this challenge by way of a federal concession, and following its founder’s north-south strategy, has served the railroad industry for the past 13 years.

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KCSM is part of the Kansas City Southern Group (KCS) which has over 120 years in the railroad transportation business in North America. KCS and KCSM have improved the system by using a solid strategy of expanding their services on both sides of the border as a “Business without Borders,” strengthening their supply and locations, taking into consideration railway competition in North America.

José Zozaya, President and Executive Representative.

In Mexico, KCSM moves about forty percent of the rail freight with a presence in 15 states and the industrial center, which includes Morelia, Toluca, Queretaro, San Luis Potosi, Monterrey, Saltillo and Nuevo Laredo. The company also operates in the ports of Lazaro Cardenas in the state of Michoacan; Tampico/Altamira in Tamaulipas and in Veracruz, Veracruz. KCSM’s routes run through the International Intermodal Corridor which begins at the port of Lazaro Cardenas, serving the main industrial areas of the country, up to the border of Nuevo Laredo. In addition, it connects the port with the main industrial centers of the southeast region of the United States, fostering and strengthening Mexico’s national and international trade. The company provides service to the most important commercial and industrial


centers, through the transportation of finished products or raw materials to the United States, Canada and to the Port Lazaro Cardenas in order to be shipped to and from Asia.

equipment and technology of its network. Additionally, the company will invest in strategic projects that will strengthen and innovate its railroad services.

Port Lazaro Cárdenas: Gateway to North America

As part of their social responsibility program, KCSM is committed to developing new environmental practices. In 2009, the company refitted 12 green locomotives which save 25 percent on fuel, reduce lubricant oil by 50 percent and cut emissions of greenhouse gases by 70 percent.

Port Lazaro Cardenas has become one of the most important points of departure for Mexico and Latin America for the transportation of products and load to the industrial core of Mexico and the United States in an efficient and safe manner. Of the total freight managed at the port, sixty percent is transported by railroad.

In addition, KCSM practices ongoing process improvement such as last year’s creation of the Fuel Saving Committee in order to find ways to improve operations

practices and fuel efficiency. Similarly, in order to foster Mexico’s development, KCSM has a strong commitment to the communities and has implemented several cultural and educational programs that enable the population to identify itself with the railroad and remain informed on safety measures with regards to the train. KCSM also views transportation as key to the industrial and commercial growth that Mexico’s and North America’s trade need and will continue investing in railroad infrastructure for the development of the industry and economy of the region.

For this reason, KCSM has developed a strategic project to build a railroad terminal in the port which will strengthen the International Corridor benefiting not only the state of Michoacan but the region itself, the economy of the country and companies along the NAFTA corridor. KCSM is confident that this project is fundamental to provide the port with the capacity necessary for its development in order to contribute to the strengthening of the national industry and Mexico’s trade capacity. KCSM: Committed to Mexico’s development

MEMBER HIGHLIGHTS / MIEMBRO DESTACADO

Going forward with the company’s commitment to the country, KCSM will invest $125.7 million in maintenance, infrastructure,

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Monroy Accountants Instrumental in Establishing Cross-Border Collaboration between Tijuana and Baja California

VIA Corporativo Building

MEMBER HIGHLIGHTS / MIEMBRO DESTACADO 44

T

he U.S.-Mexico Chamber West Coast Chapter has agreed to collaborate closely with the Tijuana Economic Development Corporation (EDC) on cross-border initiatives that will foster new business opportunities for the Chamber´s members. The effort is being led by Mauricio Monroy, a leading accountant and tax advisor who serves as the Chamber’s treasurer and currently as the president, has over 40 years of experience advising foreign investors on how to do business in Mexico and was one of Tijuana EDC´s founders. The Tijuana EDC (DEITAC) is a nonprofit organization founded in 1989. It is comprised of leading service and real-estate companies that offer foreign investors advice and project management services for establishing manufacturing

Mauricio Monroy – Tax and Managing Partner of Mauricio Monroy Contadores

operations in Tijuana, Baja California, Mexico. “As a founding member of the Tijuana EDC, I have witnessed the organization’s evolution into a professional coordinating body that is instrumental in the successful start-up of operations. It is the most effective system I know in Mexico,” said Monroy. Recently the Tijuana EDC opened a business center, a very timely project that coincides with the trend to bring back manufacturing to the Americas in order to reduce risk, streamline value chains, regionalize production, increase speed to market and increase flexibility. As the economy continues to recover and new market opportunities arise, it is important for companies to be able to scale their production capabilities quickly. Tijuana may be the answer, as it has become a competitive and effective platform


for high-quality and high-technology manufacturing. It is the perfect location for high-mix, high-value and low-volume production. Baja California and Tijuana in particular have become more competitive alternatives without having to cross oceans necessitating that engineers become expats. The proximity to the California border enables companies to keep key positions at home without losing control of the operation. Staff can go and come back in the same day. Bringing back jobs to North America is a growing trend. As explained in a recent Businessweek report, Alix-Partners confirmed that the “total landed cost” (price after an item had arrived at a California shipping port) of products arriving from China was around five percent cheaper on average than Mexico in 2005. Now, China is 20 percent more expensive.

infrastructure of high quality industrial buildings and logistics capabilities enables quick start-ups and integrated services. Additionally, having the same time zone, and bicultural local engineers and managers facilitates remote management.

In the production of medical devices, Tijuana has the highest concentration of manufacturing employment for all North America, and is home to companies such as Medtronic, Care Fusion, Greatbatch and Welch Allyn.

Tijuana has over 45 years of exportoriented manufacturing experience. It has developed world-leading competitive levels in the electronics, medical device, aerospace and automotive industries as well as emerging ability to generate solar energy. Tijuana has the highest concentration of export manufacturing companies in these sectors for all Mexico.

Companies interested in exploring the business opportunities available in Tijuana should plan to participate in some of the upcoming events: Aerospace Forum on July 21 or Medical Device Supplier Forum on September 7. To contact the Tijuana EDC, send an e-mail to info@tijuana-mex. com or call in the U.S. (619) 207-4683. The Web site is www.tijuana-edc.com

Another recent report by Bloomberg states that the growing costs of manufacturing in China have decreased the gap with Mexico to less than 14 percent. For products that are destined for the U.S. market, the geographic advantage makes Mexico more competitive, and Tijuana much more attractive for the western U.S. region.

New EDC’s office inauguration

Tijuana EDC’s office (DEITAC)

MEMBER HIGHLIGHTS / MIEMBRO DESTACADO

Tijuana offers the flexibility for short-runs as well as mass-customization, and increased “speed to market.” The available

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MAY / MAYO CHAPTER

EVENT

DAY

PLACE

FOR FURTHER INFORMATION

NORTHEAST CHAPTER. NEW YORK, NY.

Investment Opportunities-Mexican Tourism Industry

may-05

Manhattan Penthouse, NYC.

events@usmcocne.org

NORTHEAST CHAPTER. NEW YORK, NY.

Cinco de Mayo Luncheon

may-05

Manhattan Penthouse, NYC.

events@usmcocne.org

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA.

Developing a positive work environment to create employee retention.

may-06

TBD

marlen@usmcocca.org

INTER AMERICAN CHAPTER. MIAMI, FL.

XIII Chapter’s Anniversary

may-08

“Oasis of the Seas” Royal Caribbean Cruise Ship

interamerican@usmcoc.org

BINATIONAL EVENT

Annual Conference, Good Neighbor Awards and Binational Board of Directors Meeting 2011

May 12-13

Newseum / Organizacion of American States (OAS)

Eduardo.bialos@usmcoc.org

AGUASCALIENTES CHAPTER. AGUASCALIENTES, AGS.

Breakfast with chapter members

may-15

Hotel Gran Alameda

alejandro.vazquez@usmcocags.com.mx

NORTHEAST CHAPTER. NEW YORK, NY.

NAFTA: The Agenda for Sustainable Growth and Competitiveness

may-19

NYC.

events@usmcocne.org

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA.

Fourth Celebration to the International Trade Community in Los Angeles.

may-20

UCLA

marlen@usmcocca.org

MICHOACAN CHAPTER. MORELIA, MICH.

Breakfast with former Governor Ausencio Chavez

may-20

Morelia

usmcocmich1@gmail.com

MICHOACAN CHAPTER. MORELIA, MICH.

Breakfast with regional business and public figures

may-21

Cd. Hidalgo

usmcocmich1@gmail.com

MICHOACAN CHAPTER. MORELIA, MICH.

Lunch with regional business and public figures

may-22

Uruapan

usmcocmich1@gmail.com

MICHOACAN CHAPTER. MORELIA, MICH.

Breakfast with Union Social Chapter Michoacan

May-23

Morelia

usmcocmich1@gmail.com

MICHOACAN CHAPTER. MORELIA, MICH.

Meeting with the Secretary of SEDESOL

May-24

Morelia

usmcocmich1@gmail.com

MICHOACAN CHAPTER. MORELIA, MICH.

Meeting with Senator Cortez

May-25

Morelia

usmcocmich1@gmail.com

SOUTHWEST CHAPTER. DALLAS, TX.

Veterans Wall Tribute

May-25

Dallas City Hall

swusmx@netzero.com

MID-AMERICA CHAPTER. CHICAGO, IL

Jorge Castaneda Book Signing

May-25

Baker & McKenzie

blanca.berthier@usmcoc.org

NORTHEAST CHAPTER. NEW YORK, NY.

Mining in Mexico

May-26

1 Chase Manhattan Plaza, NYC.

events@usmcocne.org

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA.

California’s Manufacturing Partnership. How to minimize your production costs.

May 26-27

Marriott Downtown LA

marlen@usmcocca.org

AGUASCALIENTES CHAPTER. AGUASCALIENTES, AGS.

Visit by Ambassadors members of GRULAC (Group of Latin America and Caribbean Countries)

TBD

Rancho Santa Monica

alejandro.vazquez@usmcocags.com.mx

JUNE/JUNIO

UPCOMING EVENTS / PRÓXIMOS EVENTOS

CHAPTER

46

EVENT

DAY

PLACE

FOR FURTHER INFORMATION

MID-AMERICA CHAPTER. CHICAGO, IL

Mexico Tourism Investment Forum

June 1-11

Baker & McKenzie

blanca.berthier@usmcoc.org

SOUTHWEST CHAPTER. DALLAS, TX.

VIP Business Delegation

June 2

Veracruz, México

swusmx@netzero.com

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA.

Webinar US-Mexico Real Estate Task Force.

June 10

TBD

marlen@usmcocca.org

MID-AMERICA CHAPTER. CHICAGO, IL

Double Eagle Award

June 16

TBD

blanca.berthier@usmcoc.org

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA.

The Golden Triangle, Mexico,-USA-China, Hong Kong, Business Opportunities, Trade, Manufacturing, Transportation among three powerful countries.

June 22

TBD

marlen@usmcocca.org

VALLE DE MEXICO CHAPTER. MÉXICO, DF.

1° Expo+Congreso GIET “Global Infrastructure & Eco - Technology

June 28-29

World Tade Center, Ciudad de México

a_miroslaw@usmcoc.org

NORTHEAST CHAPTER. NEW YORK, NY.

VI Hispanic Market Forum

TBD

NYC.

events@usmcocne.org

AGUASCALIENTES CHAPTER. AGUASCALIENTES, AGS.

Security Conference

TBD

TBD

www.usmcocags.com.mx

JULY/JULIO CHAPTER

EVENT

DAY

PLACE

FOR FURTHER INFORMATION

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA.

Tequila Tasting (Certificate on Tequila, lessons, how it’s produced, types of tequila, CRT --Consejo Regulador del Tequila)

July 15

TBD

marlen@usmcocca.org

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA.

Supply Chain & Logistics’ Infrastructure, Mexico’s role in North American Production Systems: Supply Chain Management.

July 18

TBD

marlen@usmcocca.org

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA.

Mexico Tourism investment Forum, Fondo de Inversion Turistica de Mexico, (Jalisco, Queretaro, Guanajuato) Tourism, Real Estate.

July 21-22

TBD

marlen@usmcocca.org

SOUTHWEST CHAPTER. DALLAS, TX.

DFW International

July 29

Sambuca Rest. McKinney St. Dallas.

swusmx@netzero.com


New members to the United StatesMexico Chamber of Commerce

MICHOACAN CHAPTER Morelia, Mich. Templaro S.A. de C.V. MID-AMERICA CHAPTER Chicago, IL Miller Canfield Storck INTER-AMERICAN CHAPTER Miami, FL Action Coach Alternative Medicine Café Antillas Camino Real Hotel CEFIM-Centro de Estudios y Formación Integral para la Mujer Cimenet Colliers Frida Kahlo Fun Click Global Cargo HCC Hoyos Jorge Hilton Bentley

K&L Gates LLP Merrill Lynch Pineda Covalin Prime Travel Progress Investment LLC Republica Royal Bank Of Canada Safra Bank Sea Bar Seifert UM - Jose Cosials NORTHEAST CHAPTER New York, NY Curémonos Consist Software Solutions, Inc. Continental Trading Company DLA Piper LLP Dzul Dance Friends of Oaxacan Folk Art (FOFA) Grupo 5ic International School of Brooklyn Jones Day Markit N.A. Migosa Enterprises, Inc. Miranda & Estavillo, S.C. Unichem Inc. GUANAJUATO CHAPTER León, Gto. Botas Caborca Landport

VALLE DE MEXICO CHAPTER México, D.F. Grupo Mondragon Corporation Kansas City Southern de México SOUTHWEST CHAPTER Dallas, TX CH Robinson Logistics Company Leading Edge Logistics Company CALIFORNIA REGIONAL CHAPTER Los Angeles, CA Azteca America Muggenburg, Penalosa, Sepulveda Boato Claudia Echeverria Gutierrez, Diaz, Esparza, S.C. Interamerican Investment Group Keller Williams, Rocio Ortegon KPMG Lewis and lewis Maria Garza Mauricio Monroy Contadores Ocean Awakening, Mathew Kaddatz Rosen Law Steve Amponsem, Ebenezer Executive University of San Diego Vertice Communications

NEW MEMBERS / NUEVOS MIEMBROS

BINATIONAL MEMBERS Diamante Cabo San Lucas Godwin Ronquillo Jones Day Kansas City Southern de Mexico MTU Detroit Diesel Northrop Grumman

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Invertir en Oportunidades POR: STEVE SALAZAR Miembro del Consejo de la Ciudad de Dallas

Investing in Opportunity BY: DALLAS CITY COUNCILMEMBER STEVE SALAZAR

D

urante casi dos décadas, inversionistas expertos han utilizado un programa del gobierno que permite a los extranjeros tener acceso a oportunidades de inversión basadas en el empleo a cambio de una green card residencia permanente de los Estados Unidos. La Ciudad de Dallas es uno de los pocos municipios en los Estados Unidos que opera el Centro Regional, aprobado por el Servicio de Ciudadanía e Inmigración de Estados Unidos (USCIS). El Centro Regional de la Ciudad de Dallas (CDRC) permite a la Ciudad, atraer capital extranjero para la creación de empleo en empresas dentro de Dallas. Es un importante activo en el programa de desarrollo económico que ayuda a asegurar el continuo crecimiento de la economía de Dallas. Los proyectos del CDRC crean miles de nuevos empleos de tiempo completo en Dallas. A cambio, los inversionistas reciben oportunidades económicas, educacionales y de retiro de por vida en los Estados Unidos.

DESCRIPTION EB-5 / DESCRIPCIÓN EB-5

La Ciudad trabaja en conjunto con Civitas Capital Management, una firma privada con sede en Dallas que provee oportunidades de inversión de calidad, ofrece supervisión institucional de calidad del CDRC y se asegura del cumplimiento del programa. Esta asociación pública-privada es verdaderamente única entre los Centros Regionales. Los inversionistas se benefician del involucramiento activo de la Ciudad, administración por expertos en patrimonio privado y riguroso cumplimiento reglamentario.

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Inversionistas que desean participar deben invertir la cantidad mínima de USD$500,000 en una oportunidad del CDRC la cual creará diez empleos permanentes por inversionista durante dos años de la inversión. Inversionistas potenciales depositan su capital y aplican ante el USCIS para participar en el programa, comúnmente conocido como EB-5. Una vez que el inversionista ha sido aprobado, es elegible para recibir una visa EB-5, la cual ofrece al inversionista, su esposa y todos sus dependientes menores de 21 años, la residencia permanente legal condicional en los Estados Unidos. Después de dos años, los beneficiarios son elegibles para recibir una residencia permanente en los Estados Unidos “green card”. Ofreciendo oportunidades de la más alta calidad a los inversionistas, y apoyando al programa a nivel municipal, el CDRC es un modelo para los Centros Regionales, el cual ha demostrado ser valioso inclusive para los inversionistas más exigentes. Para obtener mayor información, visite su sitio en Internet civitascapital.com/CDRC.

F

or nearly two decades, savvy investors have utilized a government program that allows foreigners access to job-creating investment opportunities in return for a United States green card.

The City of Dallas is one of the few municipalities in the U.S. that operates a Regional Center, approved by the U.S. Citizenship and Immigrations Service (USCIS). The City of Dallas Regional Center (CDRC) enables the City to attract foreign capital to jobcreating enterprises within Dallas. It is an important asset in the City’s economic development program that helps ensure the continuing growth of the Dallas economy. CDRC projects create thousands of new, full-time jobs in Dallas. In return, investors get a lifetime of economic, educational and retirement opportunity in the U.S. The City works in tandem with Civitas Capital Management, a Dallas-based private equity firm that provides quality investment opportunities, offers institutional-grade oversight of the CDRC and ensures program compliance. This public-private partnership is truly unique amongst Regional Centers. Investors benefit from active City involvement, expert private wealth management and stringent regulatory compliance. Investors who seek to participate must invest a minimum of $500,000 in a CDRC opportunity that will create ten permanent jobs per investor within two years of investment. Prospective investors escrow their capital and apply to USCIS to participate in the program, commonly known as EB-5. Once an investor is approved, he is eligible to receive an EB-5 visa, which affords the investor, their spouse and all dependents under the age of 21 conditional legal permanent residency in the U.S. After two years, recipients are eligible to receive a permanent U.S. green card. By delivering the highest quality opportunities to its investors, and supporting the program at the municipal level, the CDRC is a model for Regional Centers, and one that has already demonstrated value to the most discerning investors. To learn more, visit civitascapital.com/CDRC.


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For more information please visit www.erm.com

ALLIANCE 14  

The Binational Business Magazine