Volume 4, Number 32, Page 4

Recent Developments in brief

Agriculture, Mines & Cattle Industry

MEXICO

Wheat Sale Supported

The Department of Agriculture, Livestock and Rural Development announced financial support for the sale of wheat harvested during the period of autumn-winter 1996-1997. The notice includes samples of forms to be used when requesting program support. D iario Oficial, 9/26/97.

NICARAGUA

Exports to Mexico Increase

Thanks to a free trade agreement signed in September, Nicaragua’s exports of agricultural products to Mexico are expected to increase by $25 million next year. The treaty gives preferential treatment to Nicaraguan farming and livestock products.

Banking & Credit

ARGENTINA

Cds and ADRs Trading in Buenos Aires

On Oct. 6, the Argentine stock exchange began valuing/listing ADRs and Cds in an effort to stabilize the price of stocks. The inclusion of ADRs in the local stock exchange will, in effect, allow investors to buy stock in 11 Argentine corporations eithe r in the U.S. market, where they’ve been available for some time, or in Buenos Aires. Two major benefits should ensue from this action: the cost of arbitrage will decrease, and the volume of trading in the Buenos Aires Stock Exchange will increase.

The Argentine Securities Exchange Commission created Argentine Cds in September, enabling local investors to buy stock locally in multinational companies.

Communications

BRAZIL

Great Expectations for Telebrás Privatization

The Brazilian minister of communications expects privatization of the country’s telecommunications system to bring in $120 billion over the next three to five years, according to Latin American newspapers. Sistema Telebrás, which comprises the systems of all 27 states, will be divided into three large areas, each of which will be offered separately. Telebrás representatives are scheduled to make a presentation of their plans to Wall Street and the SEC this month.

Consumer Law

MEXICO

Standards Clarified for Alcoholic Beverages

The Department of Health published a clarification of standards applying to alcoholic beverages. NOM-142-SSA1-1995 establishes sanitary specifications and labeling rules for alcoholic beverages. The standard was originally published July 9. Diario Ofic ial, 9/29/97.

Customs

EL SALVADOR

Importation of Used Auto Parts, Clothing To Be Restricted

The chief of the Department of Health, Dr. Eduardo Interiano, announced that the Department is imposing new restrictions on the imports of used auto parts, tires and clothing in an effort to prevent the spread of disease.

MEXICO

Import-Export Rules Published

The Department of the Treasury published several clarifications of amendments to foreign trade tax rules, which were originally published July 25. The tax rules establish basic import and export guidelines. Diario Oficial, 9/29/97.

Mark of Origin Rules Amended

Mark of origin rules for classifying an item as American or Canadian under NAFTA were amended by the Department of Commerce and Industrial Development. The resolution, dated Sept. 24, amends the annex of a resolution published Jan. 7, 1994. Diario Ofic ial, 9/24/97.

Certificate of Origin Rules Issued

The Department of Commerce and Industrial Development published requirements for chambers of commerce to obtain authorization to issue certificates of origin. The certificates of origin issued by the chambers are those established in ALADI, the economi c cooperation agreement between Mexico and Chile, and in the agreements signed within the framework of the 1980 Treaty of Montevideo. Diario Oficial, 9/19/97.

Quota Certificates to be Granted

The Department of Commerce and Industrial Development published a list of products that will be granted quota certificates for export to the U.S. The Department will issue the certificates for 1.27 million square meters of a specific kind of cloth, 147 ,000 shirts, 650,000 pants, 11,000 coats and 187,000 suits. Forms can be obtained from the Ventanilla de Cupos TLC, Dirección General de Servicios al Comercio Exterior, Insurgentes Sur 1940, Planta Baja, Col. Florida, C.P. 01030, Mexico, D.F., or a t the Department’s local offices. Diario Oficial, 9/12/97.

Energy

GUATEMALA

INDE Restructuring Evaluated

A private consulting firm says the restructuring of the state-owned Instituto Nacional de Electrificación (INDE) will take longer than anticipated as legal, administrative and operational issues continue to complicate the process. According to r epresentatives from PRO Investment Group, the restructuring should be completed by April 1998.

MEXICO

Natural Gas Distribution Subject to Concession

The Energy Regulation Commission published an invitation to participate in the bid process for obtaining a concession to distribute natural gas in northeastern Mexico. The geographic zone lies in the northern part of the state of Tamaulipas. For more i nformation about the bidding process, contact the Comisión Reguladora de Energía, Secretario Ejecutivo, Horacio 1750, Col. Polanco, México, D.F. 11510. Tel. (52-5)283-1555; Fax (52-5) 281-0318. Diario Oficial, 9/29/97.

Permits Granted

The Energy Regulation Commission published the issuance of several permits to transport or distribute natural and L.P. gas. The Commission authorized various divisions of Pemex to transport L.P. gas. Separately, the Commission announced that a permit w as granted to Compañía Mexicana de Gas, S.A. de C.V. to distribute natural gas in Monterrey. Diario Oficial, 9/25/97.

Facilities Dealing with Radioactive Materials Subject to Standards

The Department of Energy published technical standards for facilities dealing with radioactive materials. NOM-027-NUCL-1996 sets requirements for the design of class II facilities. Diario Oficial, 9/23/97.

Environment

MEXICO

Ban on Shrimp Announced

The Department of the Environment, Natural Resources and Fisheries published a notice announcing the ban on shrimp from federal waters off the states of Campeche, Quintana Roo and Yucatan. The Department will publish a notice when the ban is lifted. Di ario Oficial, 9/23/97.

Foreign Investment

MEXICO

Requests from Commerce Dept. Simplified

The Department of Commerce and Industrial Development published a list of rules regarding various types of permits the Department authorizes. The purpose of the rules is to simplify procedures for petitioners. Among other items, the new rules provide t hat requests to amend maquiladora permits will be considered to have been approved if no reply is given during a 10-working-day period from the date the amendment was requested. With respect to requests from maquilas to temporarily import goods in order t o manufacture products for export, the petition will be deemed approved if a reply does not follow within 20 working days from the date of the request. Diario Oficial, 9/25/97.

Labor Law

MEXICO

Wool Industry Labor Contract Published

The Department of Labor and Social Welfare published a labor contract establishing the minimum requirements for all wool textile manufacturers in Mexico. The contract establishes that wages will be paid the last working day of each week. The contract a lso establishes rules regarding salaries, holidays, and vacations, among others. Diario Oficial, 9/22/97.

Medicine & Health

MEXICO

X-Ray Facilities Subject to Standards

Updated technical standards for facilities equipped with X-Ray machines were published by the Department of Health. With the intent of protecting patients, personnel and the public in general, NOM-156-SSA1-1996 establishes the criteria for the design, construction and conservation of facilities where human X-Rays are performed.

Separately, the Department published technical standard NOM-157-SSA1-1996, which sets criteria and requirements for radiology protection associated with the performance of X-Rays for medical diagnostic purposes. Diario Oficial, 9/26/97, 9/29/97.

Taxes

MEXICO

Tax Rules for 1997 Amended

The Department of the Treasury announced amendments to the tax rules for 1997. The amendments apply to various annexes that list entities authorized to print receipts. Diario Oficial, 9/29/97.

Transportation

MEXICO

Railroad Auction Rules Amended

The Department of Communications and Transportation published an amendment to the bidding notice for the concession of the Coahuila-Durango railroad line. The original notice was published in the Diario Oficial of July 31. During the last few months, s everal railroad lines have been privatized in Mexico, and it is expected that more of them will be privatized in the near future. Diario Oficial, 9/26/97.

PANAMA

Canal Modernization Studied

The Canal Commission is studying various options to modernize and increase the capacity of the Panama Canal. Reportedly, the canal can tolerate current and projected demand until the year 2010. However, Japan and other countries have already complained that the wait to make crossings is excessive.

Various

DOMINICAN REPUBLIC

Banks Merge

On Oct. 2, the Monetary Council authorized, in Resolution No. 8, the merger between the Banco Intercontinental (BANINTER) and Banco del Comercio Dominicano. BANINTER will become the second largest private bank in the country.

GUATEMALA

Privatizations to be Completed by Year's End, Government Says

Finance Minister Alejandro Arevalo has announced that the privatization of the country's railroad, electricity, telecommunications and banking industries should be completed by year's end. The government expects the privatizations to generate an estima ted $262 million this year.

NICARAGUA

Banco del Cafe Acquires Offices of Banades

The Banco del Cafe acquired seven branch offices of the National Development Bank. Banco del Cafe now has more branch offices than any other bank in the country.

REGIONAL

Central American Vice Ministers of Economy Meet

On Oct. 8, Central America’s Vice Ministers of Economy concluded the fifth in a series of meetings in recent months on trade and regional economic integration. Discussion focused on the region’s trade relationship with the U.S. and Caribbean Rim, the FTAA and the region’s negotiations to forge a free trade agreement with Panama. Several issues remain to be resolved in meetings later this year, including the provisions relating to textiles, shoes and some agricultural products.

VENEZUELA

Trade Pact with U.S. To Be Finalized

Venezuelan officials held several meetings in Washington during the first two weeks of October to finalize a bilateral investment protection treaty with the U.S. At press time, the treaty was scheduled to be signed during President Clinton’s Oct. 13 visit to Caracas, although negotiators speculated that differences over provisions relating to Venezuela’s participation in the automotive and petroleum sectors could result in a delay.