Volume 4, Number 25, Page 4

Agriculture, Mines & Cattle Industry

MEXICO

Fruit Standard Prolonged

The Department of Agriculture, Livestock and Rural Development published a notice amending and extending the application of technical standard NOM-EM-029-FITO-1996. The standard set fito-sanitary requirements for the transportation of fruits that may host fruit flies. Diario Oficial, 6/12/97.

Support for Corn Sale Announced

The Department of Agriculture, Livestock and Rural Development announced the procedure to obtain economic support for corn harvested in the autumn-winter 1996/1997 season. The support will apply only to Mexican white corn (maíz nacional blanco). Diario Oficial, 6/20/97.

Antitrust/Antidumping Cases

MEXICO

Steel Product Assessed Antidumping Duties

The Department of Commerce and Industrial Development published the final resolution of an antidumping investigation on steel balls imported from Taiwan. The product entering Mexico under tariff category 8482.91.01 and with a diameter equal or less than 17mm was assessed a 19.44% antidumping duty.

Separately, the Department issued a preliminary decision imposing antidumping duties on different kinds of corn syrup imported from the U.S. The imposed duties run up to $175.50 per metric ton. Diario Oficial, 6/24/97, 6/25/97.

Antidumping Revision Begins

The Department of Commerce and Industrial Development published a preliminary resolution on the revision to antidumping duties imposed on different machinery and electric material from China. The final resolution imposed antidumping duties of up to 129%. Diario Oficial, 6/23/97.

Antidumping Decisions Amended

The Department of Commerce and Industrial Development announced amendments to antidumping decisions on certain toys and automotive parts from China. On 11/18/94, the Department imposed antidumping duties on several auto parts from China.

On 11/30/95, a Mexican company requested that the Secretariat revoke such duties on the basis that there is no national production of the same kind of products. The resolution confirmed and revoked antidumping duties established on different products.

On 11/25/94, the Department established antidumping duties on several types of toys imported from China. On 8/15/96, a Mexican company requested that the duties on moving musical toys be revoked because there was no national production. The Department concurred and revoked the duties. Diario Oficial, 6/20/97.

Banking & Credit

ARGENTINA

Banks Merge

The Bank of Galicia bought Banco Sudecor for $30 million, adding 280 branches and deposits of $250 million. This move puts the Bank of Galicia back on top of the list of private banks operating in Argentina.

CHILE

Proposed Banking Law Still on Hold

Members of a joint commission of senators and representatives will meet to discuss several issues of a proposed banking law that they have not yet agreed upon.

Members are still undecided about banks' operating hours and interest rates.

MEXICO

Central Banks Bylaws Amended

The Central Bank of Mexico announced amendments to its bylaws. The amendments were approved by the bankÆs board on 6/12/97. Diario Oficial, 6/13/97.

Communications

ARGENTINA

Telecommunications Giants AT&T and STET-Telecom Join Forces

AT&T, the largest telecommunications company in the world, and STET-Telecom, an Italian corporation, have formed a joint venture that will present formidable competition for Telef_nica Internacional, British Telecom and MCI in the Latin American telecommunications industry, which generates $35 billion dollars a year.

BRAZIL

Privatization of Telecommunication Industry Closer

With 312 votes in favor, 90 against and 3 abstentions, the House of Representatives of Brazil approved the General Law of Telecommunications. The bill was then approved by the Senate.

MEXICO

Radioelectric Frequencies For Sale

The Federal Commission of Telecommunications published the basis for the bidding process to acquire a concession to use radioelectric frequencies for wireless services. Several regions in Mexico are open for bidding. Information: Bosque de Radiatas n·mero 44, 3er. piso, Col. Bosques de Las Lomas, Delegaci_n Cuajimalpa, C.P. 05120, M_xico, D.F. Tel (52-5) 261-4154 and 261-4156. Fax (5) 261-4169.

Clarifications to the basis were published later. Diario Oficial, 6/30/97, 7/4/97.

Rules for Satellite Privatization Set

The Department of Communications and Transportation published the rules for the privatization of MexicoÆs satellite system. For information regarding the bidding process: Avenida Universidad y Xola; Cuerpo ôC,ö planta baja, Col. Narvarte; M_xico, D.F., 03020. Tel: (52-5) 538-5561, 538-5265, 530-56-24 and 530-3060, Ext. 5198 or 5307, Fax: (52-5) 530-1190. Diario Oficial, 6/16/97.

Telecommunication Rules Amended

A resolution that establishes the rules to register the tariffs for telecommunication services was amended by the Federal Commission of Telecommunications. Sections 2 and 6 of the original resolution were amended. Diario Oficial, 6/16/97.

VENEZUELA

Grupo Cisneros Acquires Argentine Cable TV Company

Grupo Cisneros, a transnational company from Venezuela, acquired Imagen Satelital, a cable TV company from Argentina, for $114 million. Grupo Cisneros is one of the partners of DirecTV Latin America. The venture is formed by Hughes, BrazilÆs TV Abril and MexicoÆs Multivision.

Consumer Law

MEXICO

Standards on Car-ID Numbers Published

The Department of Commerce and Industrial Development published technical standards that establish the rules for car-identification numbers. NOM-EM-005-SCFI-1997 applies to cars manufactured, assembled or imported to Mexico. The standards comply with international standards ISO 3780 and ISO 4.30. Diario Oficial, 6/27/97.

Customs

CHILE

Salmon Producers Seek to Avoid ITC Sanction

A delegation of senators and members of the Chilean Association of Salmon & Trout Producers will visit the U.S. the week of July 14. Eight U.S. salmon fisheries have charged that Chilean companies have been dumping salmon into the U.S. market. The ITC is currently conducting an antidumping investigation, and the Chilean delegation is seeking to enter into an agreement to avoid ITC sanctions.

Sixty-two Chilean salmon businesses have suspended plans for further investment in salmon farming and the construction and expansion of salmon processing plants until the charges are resolved.

Amendments to Law

Taxing Alcoholic Beverages Will Not Change

Despite opposition from the European Union, the Chilean Undersecretary of Foreign Relations said that proposed amendments to the Law of Alcoholic Beverages will not change. Two types of taxes are proposed: an ad-valorem tax and a tax that will vary depending on alcoholic content.

The European Union opposes ChileÆs method of taxing liquors, complaining that it gives unfair treatment to scotch, and plans to present its case before a WTO panel.

MEXICO

Quotas on Animal Fat, Oil Published

The Department of Commerce and Industrial Development published quotas to import animal fat and oil duty-free from the U.S. and Canada. The quotas will apply until the end of this year. Separately, the Department announced a duty of 10% on bacon imported from the U.S. (entering Mexico under tariff category 0210.12.01) as the quotas have already been exceeded.

The Department also published the rules for importing duty-free powdered milk from WTO members. Diario Oficial, 7/1/97; 7/2/97.

Duties for FTA Countries Amended

The Department of Commerce and Industrial Development published amendments to the decree that established the 1997 Tariff of the General Import Tax for merchandise originating in North America, Colombia, Venezuela, Costa Rica, Bolivia and Chile. The amendments grant duty-free treatment to several NAFTA products. Diario Oficial, 6/30/97.

Quotas on Mexican Products Set

The Department of Commerce and Industrial Development published quotas of Mexican products to be exported to the U.S. The various resolutions establish both duty-free and preferential treatments. Covered by the resolutions are sugar, syrups and other sugar-based products; peanuts; cheese, milk, cream and other milk products; orange juice; and brooms. Diario Oficial, 6/27/97.

Quotas for Duty-Free Treatment Set

The Department of Commerce and Industrial Development published two resolutions establishing the quotas for importing turkey products duty-free. Under the first resolution, 30,596.3 tons of turkey products entering Mexico under tariff categories 0207.26.99 and 0207.27.99 will pay no tariffs.

The second resolution established that 29,503.6 tons imported under tariff categories 0207.13.01, 0207.26.01, 0207.14.01 and 0207.27.01 will enter duty-free. Diario Oficial, 6/23/97.

Import Quotas Set

The Department of Commerce and Industrial Development published quotas for imports of different products from the U.S. and Canada. Under NAFTA certain products may be imported with different dutiesùa certain quantity enters subject to lower duties; after that amount is exceeded, a higher duty is charged.

Other resolutions set quotas for certain kinds of powdered milk, corn, potatoes and turkey. Diario Oficial, 6/19/97.

Energy

MEXICO

Natural Gas Distribution Zone Set

The Energy Regulating Commission announced the establishment of new regions for the distribution of natural gas. A region covering Ciudad Jußrez and another that includes Mexico City and the Valley of Cuautitlßn-Texcoco will be open for bids. Diario Oficial, 6/30/97.

Gas Distribution Permit Issued

A permit to distribute natural gas in the Hermosillo-Guaymas-Empalme region was announced by the Energy Regulating Commission.

The company Gas Natural del Noreste, S.A. de C.V. obtained the permit by a bidding process. In another notice, the Commission announced that DGN de Chihuahua, S. de R.L. de C.V., acquired the concession to distribute natural gas in the Chihuahua region. The Commission also announced the concession to Repsol M_xico, S.A. to distribute natural gas in the Saltillo, Ramos Arizpe and Arteaga region. Diario Oficial, 6/23/97, 6/26/97, 7/3/97.

Gas Concession Rules Amended

The Energy Regulating Commission announced amendments to the rules of the bidding process used to obtain gas distribution concessions. Diario Oficial, 6/12/97.

Environment

MEXICO

Standards Amended

Technical standards that control lobster fishing in the Gulf of M_xico, the Caribbean, and the Pacific Ocean were amended by the Department of Environment, Natural Resources and Fisheries. NOM-006-PESC-1993 was originally published on 12/31/93. Diario Oficial, 7/1/97.

Dolphin Catch Regulated

Limits to the accidental capture of dolphins while tuna fishing in an area of the Pacific Ocean were established by the Department of the Environment, Natural Resources and Fisheries. The limits went into effect July 1. Diario Oficial, 6/30/97.

Government Administration

MEXICO

Treasury's Bylaws Amended

The Department of the Treasury announced amendments to its bylaws. The amendments include new functions of different Department officials. The Department also published the bylaws of the Tax Administration Service.

The Department also clarified the amendments published earlier. Diario Oficial, 6/30/97; 7/4/97.

Bylaws of IRA Commission Published

The Department of the Treasury published the bylaws of MexicoÆs National Commission of Retirement Accounts. The Commission oversees the operation of the entities administrating such accounts. Diario Oficial, 6/19/97.

Insurance

MEXICO

Rules for Insurance Companies Published

New rules to create and increase the reserves of insurance companies were published by the Department of the Treasury. The rules went into effect July 5. Diario Oficial, 7/4/97.

Labor

ARGENTINA

Labor Reform: Business Proposes Ending Collective Agreements; Unions Opposed

Argentina's Chamber of Commerce proposed an emergency mechanism so that companies may temporarily suspend collective bargaining agreements and reach agreements on labor conditions without union intervention. Labor unions oppose such a provision.

MEXICO

Social Security Laws Amended

Changes to several regulations related to Social Security were published by the Social Security Institute. Among the regulations amended are those related to the payment of quotas, affiliations, farmers and family issues. The Institute also published several clarifications to the regulations. Diario Oficial, 6/30/97; 7/1/97.

IRA Rules Set

The Department of the Treasury announced several rules that apply to providers of individual retirement accounts. Via several notices (circulares), the Department established different kinds of rules, ranging from requirements for promotional brochures to rules regarding commissions. Diario Oficial, 6/30/97.

Rubber Industry Labor Contract Published

The Department of Labor and Social Services published the contract that will apply to the entire rubber industry from 1997 until 1999. By law, any company in this industry is bound by this contract; if a different one is negotiated, it must include the minimum standards in the general industry contract (contrato ley). Diario Oficial, 6/23/97.

Taxes

MEXICO

Fiscal Rules Amended

The Department of the Treasury published amendments to the Fiscal Rules for 1997. A third resolution amending such rules established the requirements of the presentation of annual reports of trusts. Other important issues covered by the amendments relate to tax rules applying to Mexicans living abroad. Annexes 1, 7, 14 and 17 were amended.

A fourth resolution amending the tax rules and Annexes 2, 5, 8, 10, 14 and 15 was also published.

The Department subsequently published several clarifications to the first resolution amending the tax rules. Diario Oficial, 6/18/97, 6/20/97 and 6/23/97.

Transportation

ARGENTINA

Airport Privatization Challenged

A judge declared null a decree authorizing the privatization of airports. Since the judgeÆs decision has not been served, the bidding process has not been suspended. The government will appeal the decision once it is served. At this time, five foreign companies have purchased the bid packets.

Various

ARGENTINA

Stronger Immigration Rules Proposed

The House of Representatives of Argentina will study possible amendments to the national immigration laws. The proposed amendments aim to tighten restrictions against illegal immigration. According to the immigration services of Argentina, one million illegal aliens are working in that country.

COLOMBIA

Construction of International Bridges Financed

Colombia's Foreign Trade Bank assigned a line of credit of $100 million to build bridges between Colombia and Venezuela. The bridges will try to ease the traffic between Norte de Santander in Colombia and Tßchira, Venezuela, where more than 80% of the trade between both countries crosses.

MEXICO

Interstate Commerce Protected

The Federal Commission of Competition published a resolution protecting interstate commerce in the state of Campeche. The resolution was based on case IO-13-96 concerning activities states Chiapas and Campeche conducted to restrict interstate commerce of bird products. The Commission resolved that in fact certain acts by the state of Campeche had imposed restrictions on the sale of such goods. The resolution states that such acts will not have legal force. Diario Oficial, 6/17/97.

Equivalent to Social Security Number Set

After many years of development, a numbering system similar to that of Social Security was established by the Department of the Interior. By resolution, the Department announced a program to establish the National Registry of Citizens and certificates of citizen identity. Diario Oficial, 6/30/97.