Strategic Players for the Development of Commerce Economic Update
Total Page:16
File Type:pdf, Size:1020Kb
VOL.6 ISSUE 6 A monthly newsletter on NAFTA and related Mexico issues SEPTEMBER 2001 Small Businesses: Strategic Players Economic Update for the Development of Commerce TRADE BALANCE: Mexico registered a trade deficit of $538 million for July 2001, up from a $437 million deficit in July 2000. Total exports in June 2001 reached $12.96 billion, a decrease of 4% with respect to mall and medium busi- Support to small and medium July 2000, while oil exports amounted $1.13 billion, down 20% from S nesses are the corner- size companies is being July 2000. Imports for July 2001 were $13.50 billion, a decrease of 4% stone of economic activity. channeled through the over the same month in 2000. According to the OECD, they FAMPYME (Fondo de Apoyo FINANCIAL INDICATORS: Mexico registered an inflation rate of represent more than 95% of a la Micro, Pequeña y 0.59% for August 2001 compared to 0.55% in August 2000. The lead- all businesses among its Mediana Empresa), the ing Mexican interest rate, CETES 28 averaged 7.3%, 7.9% points member countries and gener- FIDECAP (Fondo de lower for the same month in 2000. The Mexican Stock Exchange ate between 60 and 70% of Fomento a la Integración de Market Index (IPC) reached a maximum of 6233 points, 720 higher than the level of August 2000. The average Pesos/Dollar spot employment. This is particu- Cadenas Productivas), the exchange rate (bid) for August 2001 was 9.13 compared to 9.39 larly the case for Mexico CETRO (Centro para el Pesos/Dollar for the same month in 2000, and the international where small and medium size Desarollo de la Competividad reserves at the Central Bank reached $41.28 billion in September 7th firms represent the vast Empresarial), the CRECES 2001, up 20.7% from their level a year ago. In September 2001, open interest at the Mexican Derivatives Exchange (MexDer) amounted majority of all businesses; (Centros Regionales para la 945,543, an increase of 901,987 futures contracts traded over the they account 41% of the GDP Competividad Empresarial), same month in 2000. and generate 64% of total and the Distribution Centers employment. Program implemented in the EMPLOYMENT AND ECONOMIC GROWTH: Open unemployment US among others. These pro- reached 2.32% in July 2001, down from 2.58% in July 2000. Economic growth in Mexico, as measured by the Global Economic Activity Index The Fox Administration is grams seek to enhance the (IGAE), slowed down 3.3% in June over a year earlier. The monthly committed to promoting the competitiveness of Mexican IGAE measures 96% of the economy covered in quarterly GDP data. development of small and small and medium size firms medium size businesses, par- and integrate them to their INDUSTRIAL ACTIVITY: Mexico's industrial production decreased ticularly those in the export respective production chains, 3.3% in July 2001 over the same month in 2000. Likewise, manufac- turing output contracted 4.1%, mining activity increased 3.3%, and sector. During 2001, this providing them with training construction activity decreased 2.7%. Administration has imple- and consulting services, mented various programs to access to state-of-the-art Source: INEGI, Banxico, SHCP, BMV, MexDer and SE-NAFTA. help small companies grow, technology, development of with the aim of stimulating quality control systems, and economic activity and favor- funding. They also help com- ing job creation. continues on page 3 Mexico’s Financial Markets Financial markets play a cru- Trade in Financial Services IN THIS ISSUE cial role in any economy. In the NAFTA, Mexico had They allocate and price capi- Small Businesses . 1 originally scheduled a lengthy tal and help investors detect Mexico Economic Update . 1 transition period in the liberal- which firms and sectors are Impact on Mexico’s Financial Markets . 1 ization of financial services to able to grow and face the protect the newly privatized Diario Oficial Notices . ................................ 2 challenges of competing in banking sector. However, the Profile of New Mexico . 4 international trade and global 1995 peso crisis and the melt- Business News Digest . 4 markets. A country with an down of the Mexican financial Select Readings . 4 open economy, stable real sector ushered a series of Profile of Tamulipas . 5 growth and a solid financial legal reforms that accelerated sector will always attract this process, deeply liberaliz- investors. It is a win-win ing this sector and transform- On behalf of the Mexican Embassy and the Trade and proposition. One of Mexico's ing Mexico's regulatory bodies NAFTA office we wish to express our most heartfelt condo- goals has been to foster such and banking institutions. As a lences and solidarity to all those affected by the recent an environment through the result, foreign capital participa- tragedies. Our thoughs and prayers are with those who liberalization of the financial have suffered. service sector, with broad for- eign investor participation. continues on page 3 NAFTA Works September 2001 continues from page 1 2.88 million small and medi- um size businesses in Diario Oficial Notices panies to identify potential Mexico; 24% of these firms • Supplement to the 2001 National Standardization Program. (August markets for direct export, or are located in the central 3, 2001). indirectly as suppliers to other region of Mexico. • Agreement regarding the list of manufacturers, makes and types of companies. motor vehicles that may be imported into the U.S.-Mexico border. NAFTA has boosted the par- (August 9, 2001). The third quarter report for the ticipation of small and medi- • Official Mexican Standard NOM-085-SCFI-2001, commercial prac- 2001 fiscal year issued by um size businesses in tices-information requirements for repair and/or maintenance servic- Mexico's Secretary of export-oriented activities. es of electric or gas based appliances. (August 13, 2001). Economy shows these finan- Today, approximately 94% of • Agreement that establishes the 2001 import quota increase, under cial programs are already Mexican exporters are small the North American Free Trade Agreement, for poultry cuts from the facilitating the development of United States of America, published on November 30, 2001. and medium size firms. (August 17, 2001). new small companies. For Although the amount of their example, during the first nine exports may not be significant • Emergency Official Mexican Standard NOM-EM-04-PESC-2001, months of 2001, the Incidental capture of yellow-fin tuna (Thunnus albacore) and bigeye (less than 5 million dollars), tuna (Thunnus obesus) in the Eastern Pacific Ocean and the FAMPYME contributed to the the fact that they realize sales Atlantic Ocean, including the Gulf of Mexico and Caribbean Ocean. creation of 31 new companies abroad is; it shows that they Requirements for marketing tuna products in Mexico. (August 21, 2001). generating 548 jobs. Projects have learned to participate in such as Primer Paso world markets, and they are • Agreement regarding the 2001 import quota increase under the Productivo have resulted in North American Free Trade Agreement, for potatoes from the United contributing to job creation States of America, published on November 30, 2000. (August 24, 1651 temporary new jobs and and to the development of 2001). other funds from the FONAES stronger domestic markets. (Fondo Nacional de Empresas • Resolution that discards the antidumping review petition requested Increasing the number of by Poliestireno y Derivados, S.A. de C.V. and Resirene, S.A. de C.V. de Solidaridad) and from state small and medium size on the final resolution that imposed antidumping duties on poly- governments have generated exporters presents chal- styrene crystal from the United States of America, published on March 23, 2001. (August 24, 2001). over 11,800 indirect jobs. lenges, but also great oppor- tunities for development in • Amendment to the agreement that establishes specific requirements In parallel, the Fox Mexico. Introducing more for temporary imports. (August 27, 2001). Administration's program to small and medium size firms • Decree that modifies the import tariff for powdered milk. (August 29, help Mexican companies intro- to export-oriented activities 2001). duce their products to the US either directly or indirectly, • Agreement that establishes the 2001 import tariff increases for pow- market seeks to leverage mar- through supply chains to dif- dered milk from World Trade Organization member countries, pub- ket access created by NAFTA. ferent industries, including lished on November 30, 2000. (August 30, 2001). The recently instituted distribu- maquiladoras, is a way to take • Amendment to the application criterion of the agreement that estab- tion centers in Texas and advantage of NAFTA's chan- lishes specific requirements for temporary imports. (August 31, California, for example, have nels to simultaneously pro- 2001). enabled 24 Mexican compa- mote economic growth and • Interpretation criterion of Mexican Official Standard NOM-051-SCFI- nies to establish new promo- growth of small and medium 1994, general specifications for labeling, prepackaged foods and tional commercial contacts. size enterprises. non-alcoholic beverages, published on January 24, 1996. (August According to the WTO Annual 31, 2001). Report 2000, Mexico is the 8th The promotion of small and • Decree that modifies the import tariff for several goods of the largest exporter in the world. medium size businesses is a Mexican Tariff Schedule. (September 5, 2001). Since NAFTA went into effect priority of the Fox