Volume 4, Number 23, Page 5

Recent Developments in Brief

Agriculture, Mines & Cattle Industry

COSTA RICA

Mining Concessions Revoked

Citing environmental concerns and a tightening of government mining regulations, environment minister René Castro announced the elimination of 700 mining concessions.

Of the total concessions repealed, 60% were for mining activities in rivers, 30% for quarries and 10% for gold extraction. Castro also stated that the cancellations were motivated, in part, to promote the use of more technologically-advanced, hence more environmentally sound, mining operations. Local environmentalists criticized the decision for not going far enough. The Tico Times, 7/25/97.

MEXICO

Animal Sacrifice Standards Amended

Amendments to technical standards that regulate the humanitarian sacrifice of animals were subsequently amended by the Department of Agriculture, Livestock and Rural Development. NOM-033-ZOO-1995 was originally published on July 16, 1996. Diario Oficial, 7/16/97.

Antitrust / Antidumping Cases

CHILE

U.S. to Fix Salmon Prices

The U.S. will impose compensatory tariffs on Chilean salmon beginning in November. The U.S. Department of Commerce made the decision after American salmon producers accused their Chilean counterparts of dumping in the salmon market. Chile exports 30% of its total salmon production to the U.S, its second largest market after Canada. El Mercurio, 7/30/97.

Consumer Law

MEXICO

Verification Units Published

A list of different entities authorized to function as verification units was published by the Department of Commerce and Industrial Development. A verification unit is a company that may issue certificates of compliance for a particular technical standard. The Mexican importer has to obtain a certificate from such authorized entities stating that the product complies with the applicable technical standard. The list includes phone numbers and addresses of thirteen entities authorized to issue certificates of compliance for technical standards NOM-007-SCFI-1993, NOM-005-SCFI-1993, NOM-010-SCFI-1993. Diario Oficial, 7/21/97.

Beauty Products Subject to New Standards

The Department of Health published new technical standards that apply to prepackaged perfumes and beauty products. NOM-141-SSA1-1995 establishes the required information to be printed on the labels. Bulk products, products for treatments and medicated products are not covered by this particular standard. Among the information that needs to be published in the label are the ingredients, instructions and warnings.

The technical standards will enter into effect 180 days after publication for producers and importers, and 270 days after publication for those distributing the product or making the final sale to the consumer. Diario Oficial, 7/18/97.

Telephone Sets Subject to Standards

The Federal Commission of Telecommunications published technical standards establishing rules for telephone sets. NOM-EM-151-SCT1-1997 establishes the mechanical and electric requirements as well as testing methods for any telephone set or related equipment connected to the public telecommunications network in Mexico. Diario Oficial, 7/17/97.

Standards Published

Two notices advising of several standards entering into force were published by the Department of Commerce and Industrial Development. The standards published by the Department were as follows: 1) NMX-F-550-1997-SCFI, which deals with specifications for fresh refrigerated trout; and 2) NMX-B-257-1997-SCFI, NMX-B-264-1997-SCFI and NMX-B-272-1997-SCFI, which establish requirements and specifications for different types of steel rolls. Diario Oficial, 7/17/97.

Customs

BRAZIL

Brazil Imposes Cap on Imports

Brazilian imports of capital assets will decline from US$12 billion to US$10 billion due to the government’s decision to end its liberal policies regulating the purchase of machinery, according to the Brazilian Association of Industrial Machinery and Equipment (ABIMAQ).
The Ministers of Industry and Treasury imposed a cap of 17% on capital assets imports as part of efforts to reduce the country’s trade deficit which reached US$4.726 million in the first half of the year. Government officials explained that the decision came in the midst of a 38.3 % increase in imports of machinery and equipment between January and June compared to the same period in 1996. Diario Estrategia Internet, 7/29/97.

MEXICO

Agreement on Liquor Reached with the EU

The Department of Commerce and Industrial Development published a resolution advising of an agreement with the European Union regarding liquor trade. The agreement set general rules for the trade of alcoholic beverages, including rules to protect names of origin. Diario Oficial, 7/21/97.

Import Quotas on U.S. Eggs Set

A resolution establishing fresh egg amounts that may be imported from the U.S. duty free was published by the Department of Commerce and Industrial Development. Pursuant to the resolution, 7,102.7 tons may be imported duty free. The product enters Mexico under tariff category 0407.00.01. Diario Oficial, 7/17/97.

Notice of Possible Tariff Reduction Acceleration

The Department of Commerce and Industrial Development published a notice requesting petitions to accelerate tariff reductions for several free trade agreements. According to free trade agreements signed with Costa Rica, Colombia, Venezuela and Bolivia, the parties may agree to accelerate the tariff reduction process.

The Department is inviting parties interested in accelerating the tariff reduction process to present a request through the chambers or associations that are part of the Coordination of Business Organizations of Foreign Trade (COECE). The deadline to present the request is August 15. Diario Oficial, 7/16/97.

Energy

MEXICO

Development Program Amended

The Program for the Development and Restructure of the Energy Industry 1995-2000 was amended pursuant to a decree published by the Department of Energy. The decree affects areas related to the petrochemical and gas industries. Diario Oficial, 7/21/97.

Environment

MEXICO

Calendar for Capturing Birds Published

The Department of Environment, Natural Resources and Fisheries published a calendar designating the season for capturing certain kinds of birds. The calendar is effective for the 1997-1998 season. Diario Oficial, 7/18/97.

Foreign Investment

CHILE

Foreign Investment Thrives

The first half of 1997 saw an enormous surge—32.7%—in foreign investment in Chile compared to January-June 1996. Foreign investment in various sectors generated US$3.59 billion. The greatest increase came from foreign currency via ADR, which grew by almost 94%. Eduardo Moyano, vice president of the Committee on Foreign Investment, estimated that foreign investment will increase by more than 10% in relation to the record total of US$6.2 billion that it reached last year. La Epoca Internet. Diario Estrategia Internet, 7/29/97.

COSTA RICA

Mexican Firms Will Stay

Mexican companies ICA (civil engineers), MABE (household appliances) and TRIBASA (construction) will continue operating in Costa Rica despite their dissatisfaction in the past with the government’s business policies. A spokesperson for MABE attributed their difficulties to glitches in the Mexico-Costa Rica Trade Agreement which has only been in effect for a brief period. La Nacion, 7/30/97.

Labor

MEXICO

Standards to Protect Working Area

Technical standards that establish security and hygiene requirements for containers exposed to pressure, as well as vapor generators and boilers used at the workplace were published by the Department of Labor and Social Services. NOM-122-STPS-1996 also establishes rules for the inspection of such equipment. Diario Oficial, 7/18/97.

Various

BRAZIL

Telecommunications Industry to Generate 12,000 New Jobs

According to newspaper reports, ten new private companies running the Bank-B cellular telephone network are expected to create 12,000 new jobs over the next three years. Gazeta Mercantil, 7/30/97.

COSTA RICA

Caja May Sue Tobacco Giants

Costa Rica’s Social Security Administration (Caja) is exploring the possibility of suing transnational tobacco companies Republic Tobacco Company and the Costa Rican branch of Philip Morris. The Caja has hired a U.S.-based law firm to possibly seek a settlement similar to the one reached between the U.S. Congress and the tobacco industry. The Tico Times, 7/25/97.

REGIONAL

Chile to Participate in Mercosur Technical Working Groups

During meetings between Chile and Mercosur member countries held in late July in Montevideo parties agreed that Chile will begin participating in three of the trade bloc’s technical working groups: sanitation and phitosanitation measures, arbitrage and regulatory proceedings, and technical proceedings. According to the Mercosur Chancellery’s Director of Bilateral Issues, Manuel Valencia, Chile’s participation will allow the country to solidify its commercial relationship with the trade bloc.

Chile also submitted a proposal to the Administrative Commission of Mercosur which would allow it to participate in sub-working groups, special meetings and some ad hoc groups. The Commission plans to study the request and come to a decision by September. Chile informed the trade bloc of its trade agreement with Canada, and offered to open up negotiations to Mercosur members, a proposal which was tabled by the Bloc. Additional meetings will be held in September to discuss the proposal. Diario Estrategia, 7/29/97.