Volume 4, Number 30, Page 4

Recent Developments in brief

Agriculture, Mines & Cattle Industry

MEXICO

Shrimp Ban Lifted

A ban on the capture of shrimp from the Pacific Ocean was lifted, according to a notice posted by the Department of the Environment, Natural Resources and Fisheries. During the months of February and April, several bans were set with respect to the capture of shrimp in different locations in the Pacific Ocean. Diario Oficial, 8/26/97.

Standards Amendments Proposed

The Department of Agriculture, Natural Resources and Fisheries proposed amendments to various technical standards that deal with various illnesses. The proposed amendments include the following: NOM-007-ZOO-1994, which deals with Aujeszky disease; NOM-031-ZOO-1995, which deals with cattle tuberculosis; and NOM-044-ZOO-1995, which deals with aviar influenza. Diario Oficial, 8/27/97.

Antitrust/Antidumping Cases

CHILE

WTO Consultations Requested

On Aug.7, Chile requested consultations with the WTO concerning the U.S. Department of Commerce’s investigation of subsidies on salmon imports from Chile. According to WTO rules, the U.S. must respond to the request within 10 days and talks must begin within 30 days. If the dispute is not resolved within 60 days, Chile may request that a WTO panel review the case. On July 24, the International Trade Commission voted to continue a dumping and subsidy case against Chilean salmon filed by the Coalition for Fair Atlantic Salmon Trade and eight private firms.

MEXICO

Preliminary Decision Reached on U.S. Apple Case

A preliminary decision on the antidumping investigation of several types of apples imported from the U.S. was announced by the Department of Commerce and Industrial Development. The case dates to Dec. 4, 1996, when an agricultural group presented the antidumping investigation request. A preliminary antidumping duty of 101.1% was set on imports of red delicious and golden delicious apples. The products enter Mexico under tariff category 0808.10.01. Diario Oficial, 9/1/97.

Anti-dumping Case on U.S. Fuel Additives Resolved

The Department of Commerce and Industrial Development published a final resolution of an antidumping investigation on fuel additives from the U.S. On Nov. 9, 1995, Bardahl de Mexico requested an antidumping investigation on fuel additives from the U.S. manufactured by First Brands Corporation. The Department imposed antidumping duties of 81% on imports of gas additives of the brand STP Gas Treatment, manufactured by First Brands Corporation. The product is imported under tariff category 3811.90.99. Diario Oficial, 8/22/97.

Consumer Law

MEXICO

Verifying Units Listed

A new list of entities authorized to verify compliance with technical standards was published by the Department of Commerce and Industrial Development. In three separate publications, the Department listed entities that are approved to verify the compliance of technical standards NOM-050-SCFI-1994, NOM-051-SCFI-1994, NOM-024-SCFI-1994 and NOM-004-SCFI-1994. Diario Oficial, 8/28/97.

Bylaws of National Metrology Center Published

The Department of Commerce and Industrial Development published the bylaws of the National Metrology Center. The purpose of this is to create standard units for the general system of measuring units. Diario Oficial, 8/27/97.

Standards to Regulate Eggs Proposed

The Department of Health proposed technical standards applicable to eggs. NOM-159-SSA1-1996 establishes sanitary rules for eggs. Diario Oficial, 8/26/97.

Banking & Credit

REGIONAL

Credit Guarantees Amended for East Caribbean Region

The U.S. Department of Agriculture announced Aug. 7 that it has increased by $30 million the allocation of credit guarantees available to U.S. exporters for the sale of U.S. agricultural commodities to the East Caribbean region under the Commodity Credit Corp.'s Export Credit Guarantee Program (GSM-102) for fiscal year 1997. The increase brings the region's total program coverage for fiscal year 1997 to $80 million. The USDA also announced similar increases for the GSM-102 program for Mexico, expanding it by $150 million and bringing total coverage for fiscal year 1997 to $1.225 billion.

Customs

ARGENTINA

Argentina Imposes Tariffs

on Sugar

Overriding a presidential veto and citing alleged trade imbalances caused by Brazil's alcohol/sugar industry, Argentina's Congress voted Sept. 3 to impose tariffs on sugar imports from Brazil. The Brazilian government called the decision a violation of the spirit of Mercosur while members of Argentina's Economic Ministry questioned the constitutionality of the measure. Brazil produces 15 million tons of sugar per year, of which it exports about half. Argentina produces 1.5 million tons of sugar annually and exports approximately 200,000 kilos. Last year Brazil sold 9, 591 tons of sugar to Argentina for US$2.7 million, a fraction of the country's total exports to Argentina last year, which exceeded US$5 billion.

MEXICO

Import Permit Required

A list of all products which require an import permit from the Department of Commerce and Industrial Development prior to the actual importation of goods was published by the same Department. The list includes the tariff categories and differentiates between those situations when products will be imported temporarily as opposed to permanently. Diario Oficial, 8/29/97.

Customs Rules Amended

The Department of Commerce and Industrial Development published amendments to the 1997 rules on foreign trade. The rules, known as the Resolución Miscelánea de Comercio Exterior, were originally published on March 27 and amended on May 6. The amendments include changes to various annexes, which contain, among other items, special forms required for exporting or importing. Diario Oficial, 8/25/97.

Intellectual Property

REGIONAL

Exclusive Use of Trademark

Venezuela has sued Ecuador before the Andean Court of Justice of Quito, Ecuador, in connection with the sales of BELMONT cigarettes in the Ecuadorian market by the Venezuelan subsidiary of British-American Tobacco (BAT).

The mark is registered in Ecuador by a subsidiary of Philip Morris (PM). BELMONT was manufactured and exported from Ecuador but not used for some time in the internal market of that country. In line with Andean Decision 344, the Venezuelan company could temporarily use the Ecuadorian internal market.

But as soon as PM decided to use that market, the extent of the exclusivity of use of BELMONT in Ecuador was raised by Venezuela.

Venezuela requested the forced co-existence of BELMONT by two different manufacturers in the Ecuadorian market, and Ecuador banned the Venezuelan product as infringing the rights of a registered mark. The Andean court decided two key issues.

First the exclusivity of use allows the holder of the registration to opposed the imports of products with the same trademark originating in another manufacturer.

Second, no acquired right can be derived from the temporary use of the internal Ecuadorian market as based on certain interim conditions specified in the law.

VENEZUELA

Patent Office Reorganization

The former Ministry of Development has been restructured. The Ministry’s name is now the Ministry of Industry and Commerce (MIC) and the Intellectual Property Directorate now encompasses both the PTO and the Copyright Office under the joint name of Autonomous Intellectual Property Service (SAPI).

The former registrar, Dr. Rolando Vega, has retired; since July 1, Dr. Francisco Astudillo has served as acting registrar pending the official initiation of SAPI (O.G. 36.234 dated June 23, 1997). Dr. Astudillo authored a book on patents published by Los Andes University.

Appellation of Origin

The PTO (Bull. 405 dated September 29, 1996) rejected an application for registration of trademark CHAMPAGNE filed by Yves Saint Laurent International B.V. based on the fact that CHAMPAGNE is a protected appellation of origin referring to goods originating in the French region of Champagne.

Apparently, the product for which protection was applied covered perfumes and did not cover alcoholic beverages. By its decision, the PTO is questionably extending the protection of an appellation of origin to products other than those for which the appellation of origin is established. The resolution is subject to appeal.

Right to Double Registration

The PTO has decided (Bull. 410 dated April 18, 1997, Vol. 1, TM FUTURO) that the holder of a trademark registration is free to take out additional registrations of his mark. It accordingly granted to the local registrant in the same class of the marks the right to so precede against the opposition filed by the Kendall Company alleging the notoriety of the same mark, despite the fact that the PTO expressly granted the existence of notoriety of that same mark.

The implication is that the declaration of notoriety of a mark may not per se prevent the registration of the same mark by another party when such party holds already a registration of the mark. Notoriety does not operate automatically in all cases.

Geographic Name as Trademark

The PTO decided (Bull. 412 dated June 20, 1997, Vol. 1) that trademark HOLANDA for ice cream, pastry or confectionery is acceptable for registration since Holland is not known as a producer of the goods covered.

The decision was reached upon reconsidering a prior PTO decision rejecting the registration as deceptively misdescriptive by showing Holland as a possible place of origin while the product is not produced in Holland.

Fictitious Name as Trademark

On a reconsideration filed against a decision rejecting trademark DAVIDSON as being a personal name different from the name of the applicant, designed to cover goods in international class 20, the PTO (Bull. 412 dated June 20, 1997, Vol. 2) decided that since no opposition was filed against the application, the allegation of fictitious name made by the applicant is confirmed without requiring proof of consent by any actual bearer of that name. The application accordingly qualified for registration.

Labor Law

MEXICO

Social Security Forms Approved

The Mexican Institute of Social Security published a resolution authorizing several new forms, including those required to register a worker in the social security system. Samples of these new forms may be downloaded from InterAmsm. Diario Oficial, 8/22/97.

Taxes

MEXICO

Tax Rules Amended

For the seventh time this year, the Department of the Treasury announced amendments to the tax rules applicable for 1997. Annexes 1, 2, 7, 14 and 15 were amended as well. Diario Oficial, 9/1/97.

Transportation

CHILE

Airport Privatization Encounters Financing Difficulties

Efforts to privatize Santiago’s international airport have been further complicated by obstacles in the project’s financing. Industry officials believe that a lack of interest in financing the project on the part of both the national and international banking sectors, coupled with the US$ 170 million concession the government is seeking to initiate the privatization, is jeopardizing the competitiveness and feasibility of the bidding process.

Although the privatization is seen as a potentially highly profitable endeavor, banking entities are reluctant to back the project because the consortia involved lack the assets necessary to guarantee the project. Since the bidding process began in June, three of the 13 consortia have withdrawn. Investors have asked the Department of Public Works to postpone the Sept. 30 deadline for technical and financial bids for the project.

MEXICO

Concessions Revoked

Several federal highway concessions granted during the 1980s were revoked by the Department of Communications and Transportation. Pursuant to the decree, more than 10 federal highways were returned to the possession of the federal government. Diario Oficial, 8/27/97.

Various

MEXICO

Sanctions Requested for

Long Distance Carriers

The Federal Telecommunications Commission requested that the Department of Communications and Transportation impose sanctions on long distance providers Avantel, Alestra, Protel and Telmex.

The request is based on the fact that the referred companies changed long distance carriers without users' consent.

Agreement to Limit Fructose Imports from the U.S.

Soft drink bottlers and sugar producers from Mexico agreed to limit the imports of fructose from the U.S. Herminio Blanco, Mexico's minister of trade stated that the agreement does not violate NAFTA. Sugar producers are pressuring lawmakers to renegotiate the NAFTA section related to sugar. Prior to the trade agreement, fructose imports paid a 15% duty; now the duty is 12.5%.

Bentata Abogados of Venezuela contributed to the summaries.