Volume 4, Number 34, Page 6

Recent Developments in brief

Agriculture, Mines & Cattle Industry

MEXICO

Sugar Subsidies Announced

The Department of Commerce and Industrial Development published a notice establishing rules to receive a subsidy on sugar exports. According to the notice, the subsidies will be granted to those who exported the surplus of their production. Diario Oficial, 10/20/97.

Standards Set on Vaccines

The Department of Agriculture, Livestock and Rural Development published NOM-053-ZOO-1995, sets minimum requirements for vaccines to be used inthe prevention and control of brucelosis in animals. Diario Oficial, 10/28/97.

Antitrust/Antidumping Cases

MEXICO

Revisions to Dumping Cases Published

The Department of Commerce and Industrial Development published final resolutions of revisions to two antidumping cases.

The first case deals with the importation of porcelain goods from China. On May 7, 1992, the Department published a decision imposing antidumping duties of up to 26% on the importation of such products. The Department resolved to increase the antidumping duties to 99.81%.

In the second case, the Department published a final resolution of a revision on an antidumping case involving ceramic utensils imported from China. On May 27, 1992, the Department imposed antidumping duties of 23%. The Department concluded its revision by raising the antidumping duties to 95.06%. Diario Oficial, 10/31/97.

Revision Requested

The request to revise an antidumping decision on imports of hydrogen peroxide from the U.S. was published by the Department of Commerce and Industrial Development. The case will be revised by a binational panel; it was assigned case number MEX-97-1904-01. Any interested party may contact Mr. Rafael Serrano Figueroa at Boulevard Lopez Mateos 3025, Col. Heroes de Padierna, C.P. 10700, Mexico, D.F. Diario Oficial, 10/24/97.

Dumping Case on Chinese Chemical Resolved

The Department of Commerce and Industrial Development published a final decision on the antidumping investigation of a chemical product imported from China. The product, known as furazolidona and imported under tariff category 2934.90.01, was investigated based upon a complaint presented in 1996. The Department imposed antidumping duties of 117% on the importation of this product. Diario Oficial, 10/23/97.

Panel Reviews Implementation of Decision

A binational panel has reviewed the implementation of its decision regarding importation of U.S. steel, according to a document published by the Department of Commerce and Industrial Development.

On Sept. 27, 1996, the panel returned the case to the Department with an order that it meet certain requirements. The requirements were related to the competence of some of the officials of the Department when acting upon the referred case. The Department presented the report on the returned case to the panel on April 30.

The panel confirmed some of the points in the report and ordered the Department to inform the company of several of the issues included in there port and to give the company an opportunity to present additional information. After that, the Department must recalculate the dumping margin. Diario Oficial, 10/17/97.

Review Panel Requested

A notice by a panel requested to review a case on the importation of kitchen utensils from Mexico into the U.S. was published by the Department of Commerce and Industrial Development. On Aug. 7, the U.S. Department of Commerce published in the Federal Register the request for the revision of the case. The notice alerts any interested party to submit information to James R. Holbein, United States Secretary, NAFTA Secretariat, 14th Street & Constitution Ave., N.W., Suite 2061, Washington, D.C. 20230. Diario Oficial, 10/17/97.

Banking & Credit

CENTRAL AMERICA

Banking Summit Addresses Regional Integration

The presidents of Central America’s central banks met in Guatemala City during the last week of October to discuss ways to further develop and integrate the region’s mechanisms for regulating and supervising banking activities. Members of the Central American Monetary Board believe greater uniformity and integration of the finance sectors within each country and at the regional level will help ensure financial stability throughout the entire region. The proposed integration measures are a response, in part, to a recent banking fraud case in El Salvador involving two of the country’s most important financial institutions, INSEPRO and FINSEPRO, and one of its wealthiest families. The case had severe repercussions for El Salvador’s finance sector.

Communications

MEXICO

Rules on Concessions of Frequencies Amended

The rules for the procurement of concessions to use radioelectric frequencies for purposes of providing restricted television and radio services were amended by the Federal Telecommunications Commission. The original procurement rules were published Sept. 3. Diario Oficial, 10/27/97.

Local Telephone Service Rules Published

The Federal Telecommunications Commission published rules to provide local telephone services. Previously, Telmex held a monopoly of long distance and local telephone services. Long distance competition has already begun in Mexico, with companies such as AT&T, MCI and Sprint competing for a share of the market. Local telephone services are now open for competition. Diario Oficial, 10/23/97.

Consumer Law

MEXICO

Water Meters Subject to Standards

Technical Standards establishing technical requirements for cold water drinking meters were published by the Department of Commerce and Industrial Development. NOM-012-SCFI-1994 repeals NOM-012-SCFI-1993. Diario Oficial,10/29/97.

Customs

MEXICO

Customs Treaties Ratified

The Department of Foreign Relations published a list of customs-related treaties ratified by the Senate. Mexico has joined the following treaties:

• Customs Agreement Regarding A.T.A. Notes, for the Temporary Admission of Goods and its Annex. Signed in Brussels Dec. 6, 1961.
• Customs Agreement to Facilitate the Import of Goods Destined to be Presented or Used at an Exposition, Fair, Congress, or Similar Activities. Signed in Brussels June 8, 1961.
• Customs Agreement for the Temporary Importation of Professional Equipment and its Annexes A and B. Signed in Brussels June 8, 1961.
• International Agreement to Facilitate the Importation of Commercial Samples and Marketing Materials. Signed in Geneva Nov. 7, 1952. (Some reservations were held by Mexico in this agreement). Diario Oficial, 10/28/97.

Products Subject to Regulations Listed

Products subject to regulations by the Department of Environment, Natural Resources and Fisheries were listed. The PROFEPA, (Mexico’s EPA equivalent) will be in charge of making ocular inspections. Importers or exporters of products included in the list must present the respective certificate or authorization together with the customs documentation. Diario Oficial, 10/27/97.

Verification Procedures Set

The Department of Commerce and Industrial Development published rules and procedures to verify compliance of technical standards. The rules apply only to compliance verification for which the Department has authority. Diario Oficial, 10/24/97.

NICARAGUA

EU Suspends Seafood Imports

The EU will no longer import seafood from Nicaragua because of what was initially thought to be a lack of compliance with the trade bloc’ssanitary guidelines. However, a Nicaraguan official with the Department of Fishing announced Nov. 4 that the reasons for the embargo were unclear. He suggested legal issues as a possible cause, while maintaining that Nicaragua has received confirmation from the EU that it is in strict compliance with sanitary requirements. Nicaragua’s total seafood exports generated an estimated $59.7 million last year and another $27.4 million during the first half of this year, according to the Central Bank of Nicaragua.

Energy

MEXICO

Thermal Insulation Subject to Standards

The Department of Energy published technical standards applicable tothermal insulation used in buildings. NOM-018-ENER-1997 establishes characteristics and testing methods for this product. Diario Oficial, 10/24/97.

Permit to Distribute Natural Gas Published

The Energy Regulating Commission published a notice giving permission to Energía Mayakan, S. de R.L. to transport natural gas. The permit gives the company the right to receive natural gas via pipelines from the petro chemical complex CPQ in Tabasco and transport it to the Yucatán peninsula. Diario Oficial, 10/17/97.

Environment

MEXICO

L.P. Gas Subject to Standards

The Department of Environment, Natural Resources and Fisheries published standards related to environmental specifications with which L.P. gas must comply. NOM-EM-118-ECOL-1997 applies to gas used as combustible in industries and homes in the Mexico City area. Diario Oficial, 10/31/97.

Septic Tank Standards Proposed

Premanufactured septic tanks are subject to technical standards proposed by the Department of Environment, Natural Resources and Fisheries. NOM-006-CAN-1997 establishes specifications and testing procedures for domestic premanufactured septic tanks.

The Department also proposed standards NOM-007-CAN-1997, dealing with safety requirements for the construction and operation of water tanks. Diario Oficial, 10/24/97, 10/27/97.

Intellectual Property

VENEZUELA

Intellectual Property Piracy

The U.S. ambassador to Venezuela, speaking in Caracas at a forum on intellectual property, said that IP piracy has caused North American firms to lose $150 million in Venezuela. John Maisto told the audience that the U.S. government wants Venezuela to adhere to minimum IP protection standards established by the World Trade Organization. Venezuela and the United States entered into a bilateral investment treaty a year ago. U.S. negotiators are set to travel to Venezuela in mid-November to discuss, among other issues, whether the United States is willing to pay for the restructuring of Venezuela’s legal system necessary to adequately safeguard intellectual property in Venezuela.

Labor Law

MEXICO

Standard Amended

The Department of Labor and Social Services amended technical standard NOM-019-STPS-1993. Previously, the standard applied to the creation, registration and functioning of security and hygiene commissions operating inside corporations. After the amendments, the standards relate only to the creation and functioning of these commissions. Diario Oficial, 10/22/97.

Medicine & Health

MEXICO

Technical Specifications for X-Ray Devices

Technical specifications for x-ray devices were published by the Department of Health. NOM-158-SSA1-1996 includes tables with technical information. Diario Oficial, 10/20/97.

Standards Proposed on Sale of Purified Water

The Department of Health proposed technical standards to regulate the production and sale of purified water. NOM-160-SSA1-1995 establishes sanitary standards to be observed by establishments, distributors and equipment providers engaged in the production, distribution and sale of purified water. Diario Oficial, 10/17/97.

Transportation

COLOMBIA

New Maritime Ports Slated for Construction

Colombia’s Minister of Transportation announced that four new ports will be built to facilitate the import and export of goods from the country’s Pacific and Atlantic coasts. The two ports to be located on the Atlantic side (with entry from the Caribbean Sea) will be used for transporting coal.

Various

ARGENTINA

IMF Grants $2.5 Billion

The IMF is expected to sign an agreement with Argentina in early November which will allow the country to receive $2.5 billion over the next three years. Miguel Kiguel, Argentina’s subsecretary of finance, announced thatthe money will be dispersed in three installments of $800- $900 million each.

Packaging Plant to Open

A U.S. manufacturer of packaging goods announced its plans to open a plant in Argentina next year. Marinetti Packaging, which makes cardboard, bags, boxes and other packaging materials, plans to invest $10 millionin the new factory. Of the company’s current $10 million in annual exports, about 20% is shipped to Argentina.

MEXICO

Several Treaties Ratified

The Department of Foreign Relations published a list of various treaties ratified by the federal government, including the following:

• Final Acts of the World Conference on Radio Communications, International Telecommunications Union.
• Agreement with Israel for Joint Cooperation in Customs Matters.
• Agreement with Argentina for the Reciprocal Promotion and Protection of Investments.
• Annex V of the 1978 Protocol to Prevent the Contamination by Ships, and other Amendments.
• Amendments to the Air Transportation Agreement with Canada.
• Amendments to the Agreement that Creates the International Maritime Organization.

Diario Oficial, 10/30/97.

NICARAGUA

Denmark Grants $150 Million for Development Programs

Denmark will provide $150 million over the next five years for development projects as part of its efforts to strengthen bilateral cooperation with Nicaragua. During a recent visit to Nicaragua, Poul Nielson, Denmark’s Minister of Development Cooperation, confirmed that priority will be given to programs designed to protect the country’s natural resources and environment.

PERU

Prompex Studies Ways to Expand Exports

The Commission for the Promotion of Exports (Prompex) has begun examining ways to expand Peru’s export sector, which is currently growing at an annual rate of approximately 20%.

Measures under consideration include creating a credit mechanism for foreign investors, new credit guarantees, export credit insurance and changes in tariff levels. Antonio Castillo, the director of Prompex, also announced that most of the organization’s budget for next year will be used to develop exports originating in the country’s rural sector. This year’s budget was approximately $150 million.

REGIONAL

Industry Seeks Free Trade Agreement

Representatives of two of the biggest industrial chambers of steel manufacturers in this hemisphere convened for the purpose of proposing a free trade agreement applicable to the steel industry.

On November 3, members of the Latin American Institute of Steel and Iron (ILAFA) and the American Iron and Steel Institute (AISI) met in Miami to discuss the possibility of such agreement. The 35 people present at the meeting represent companies that produce almost 100 percent of the iron and steel in this hemisphere.

The group also discussed protection against steel imports from countries such as Russia and Ukraine, which may be dumping their products in the U.S., Canada, Chile and Mexico.

The ILAFA includes steel and iron industries from Mexico and Central and South America. The AISI includes industries from the U.S., Canada and Mexico. El Norte, 11/5/97.

Mercosur-Andean Pact Negotiations Continue

Representatives from the member countries of Mercosur and the Andean Pact began deliberations Oct. 29 on the elimination of tariffs for a long list of products that will be included in the free trade agreement between the two blocs. Efforts to finalize the agreement have been hindered by an ongoing debate over the time table for eliminating duties on approximately 5,000 products. Mercosur countries generally favor a 15-year time limit for reaching a zero tax level, while Andean countries are pushing for an 18-year limit.

Negotiators also addressed provisions concerning the auto industry. Brazil is the region’s largest manufacturer of automobiles, with an estimated output of two million automobiles this year, while Argentina is expected to produce 350,000. In contrast, the five Andean-Pact countries together will produce approximately 400,000 automobiles by Dec. 31.

VENEZUELA

Agreement Signed

Oil giants PDVSA, Mobil and Veba Oel entered into a joint venture that plans to produce an average of 120,000 barrels per day of crude oil in Venezuela’s Cerro Negro region beginning in 2001, according to a Venezuelan newspaper. The project is expected to result in investments of $2.5 billion over 35 years. As part of the deal, PDVSA bought 50% of the stock in one of Mobil's Louisiana refineries for $270 million.