Volume 5, Number 26, Page 5
Recent Developments
Antitrust/Antidumping Cases
Mexico
Investigation on Urea for Fertilizer Announced
The Department of Commerce and Industrial Development (SECOFI) announced the initiation of an antidumping investigation on urea imported from the U.S. and Russia. The investigation was requested on September 30, 1998 by Agro Nitrogenados, S.A. de C.V.
SECOFI has begun an investigation into urea imports from Russia and the U.S. Those interested in obtaining more information should present a request at the Oficialía de Partes, Unidad de Prácticas Comerciales Internacionales, Insurgentes Sur 1940, planta baja, Col. Florida, C.P. 01030, México, D.F., Tel. (52-5) 229-6100, ext. 3105 and 3106, Fax 229-6502 and 229-6503. A public hearing will take place on November 16, 1999 at the place mentioned above. Diario Oficial, 12/14/98.
Banking & Credit
Ecuador
Regulations for Banks
The Ecuadorian Banking Committee has created new regulations to allow foreign investment in banks operating in Ecuador. Such investment may include the opening of new banks or the acquisition of stock in existing banks.
At this time, the Ecuadorian government controls two banks with international connections operating in Ecuador: Filabanco and Continental. The government intends to sell all its stock in these banks to national and foreign investors. The price of sale of these banks will vary depending on offers received by the government from interested parties.
The minimum amount of capital needed to open a bank in Ecuador is around 10 million US dollars.
Paraguay
Paraguay Likely to Change Banking Laws
The World Bank has urged the government of Paraguay to change its present banking laws and to adopt a three-part stabilization plan.
Phase one would allow the Central Bank of Paraguay to quickly shut down financial institutions experiencing problems of liquidity or solvency. In addition, it would return part of the deposits of customers affected by such closures.
Modifying the banking laws is an alternative to creating a fiduciary fund that would be jointly administered by both public and private sectors. Such a fund would finance, over the long term, acquisition by solvent companies of the best assets of those entities forced to close.
The Paraguayan government expects to create such a fund from credit offered by the World Bank or from a US$400 million surplus generated by the liquidation of intermediaries and restitution of deposits. According to sources, the latter is the preferred source of funding at the present time.
Phase two would lead to changes in current legislation by monitoring results of the stabilization plan.
Phase three of the plan proposes the creation of banking insurance made up of contributions from financial institutions. Once this insurance is in place, the government would no longer be required to be guarantor of the banking system.
As only two weeks remain before parliament recesses, it is unlikely there will be time to approve the stabilization plan. The administration is likely to convene a special session of congress to deal with the matter. ABC Color - Paraguay, 12/16/98
Communications
Brazil
Sprint, Canada’s BCE Bid For Brazilian Telecom Licenses
Sprint Corp., the third- largest U.S. long-distance company, and Canada’s biggest phone company, BCE Inc., led bidding totaling about $830 million for “mirror” licenses to provide competing fixed-line and long-distance telephone service in Brazil. The demand for licenses fell short of expectations, as phone companies presented bids on just two of the four concession areas on offer in Latin America’s largest phone market. The bid marks Sprint’s second attempt to gain a foothold in Brazil.
Consumer Law
Mexico
Standards on Measuring Devices Published
SECOFI has published technical standards applicable to volume measuring devices. NOM-041-SCFI-1997 sets the requirements for devices used to measure volume, with capacities from 25 milliliters to 10 liters. At the same time, SECOFI published NOM-042-SCFI-1997, applicable to similar measuring devices. Diario Oficial, 12/9/98.
Computer Security Requirements Published
A technical standard establishing the security requirements for data processing equipment has been published by SECOFI. NOM-019-SCFI-1998 applies to all data processing equipment sold in Mexico. The standards apply to laptop and personal computers, as well as palmtop devices, among others. Diario Oficial, 12/11/98.
Customs
Mexico
Canadian Meat Products Subject to Duties
SECOFI announced new duties upon several Canadian meat products. Duties of 20 percent were imposed meat products after the import quota for 1998 was exceeded. The duties apply until the last day of the year, since a new quota will begin in 1999.
At the same time SECOFI announced similar duties applicable to certain types of bacon imported from Canada. Diario Oficial, 12/8/98 and 12/14/98.
Regional
Auto Politics Divide Mercosur
The difficult topic of regional automobile production will again be at the center of debate at the Fifteenth Cumbre Presidencial del Mercosur conference, where Brazil, seeking a liberalization of the automotive sector, and Argentina, advocating protectionist politics, will arrive with very different propositions.
Based on a decision made in Ouro Petro in 1994 by the economic bloc, a common automotive policy should be in place as of December 1, 2000, but the position of member countries, notably the largest two players, seems uncertain.
The outlook becomes bleaker if one takes into consideration that the automotive sectors in Brazil and Argentina are in crisis. By José Luis Varela of AFP/El Universal.
Energy
Brazil
Banks Issue US$1.3 Billion in Bonds in Order to Boost Oil Production
A group of three companies -- comprised of banks Sul América, ABN Amro and BNDES -- will join forces to issue bonds worth US$1.3bn in the international market. The group aims to invest money raised through the issue of such bonds in order to increase production at Marlin oil feilds (located in the Campos basin, off Rio de Janeiro's coast) without going into debt.
The three companies indicate that this investment will allow the country's state-owned oil company Petrobrás to expand Marlin's production to 500,000 barrels/day, part of a plan to make Brazil self-sufficient in oil production. By Milton F. da Rocha Filho, information provided by the Consulate General, Trade Bureau of Miami.
Insurance
Mexico
Registration Renewed
The SHCP announced the renewal of the registration of several foreign insurance companies. The new registration is valid from January 1 to December 31, 1999. Among the more than 140 foreign insurance companies whose registration has been renewed are Lloyd’s, The Sumitomo Marine & Fire Insurance Company, Ltd and Metropolitan Life Insurance Company. Diario Oficial, 12/1/98.
Labor Law
Mexico
Minimum Wage Increased
The National Minimum Wage Commission announced an increase in the minimum wage as of December 3. According to the Commission, the new daily minimum wages will be $34.45 pesos (approximately US$3.44) for zone A, $31.90 pesos (approximately US$ 3.19) for zone B, and $29.70 pesos (around US$ 2.97) for zone C. Zone A includes Mexico City and Baja California; Zone B includes several cities in Jalisco and Nuevo Leon; and Zone C includes Durango, Guanajuato, Hidalgo, Michoacán and Morelos.
At the same time, the Commission published the minimum wage for various professions. For example, construction workers in Mexico City earn a daily minimum wage of about US$ 5.02. Diario Oficial, 12/2/98 and 12/7/98.
Transportation
Mexico
Standards on Hazardous Materials Published
The Department of Communications and Transportation (SCT) published technical standards related to hazardous materials. NOM-009-SCT4-1994 sets the classification and terminology of hazardous materials transported by ship. The standards apply to producers, transportation companies, maritime shippers and others responsible for the transportation of hazardous materials. Diario Oficial, 12/7/98.
Standards on Inflatable Lifeboats Published
The SCT (Secretaria de Communicacion y Transporte) has published technical standards related to inflatable lifeboats. NOM-010-SCT4-1994 sets the requirements and specifications that self-inflating lifeboats must meet. NOM-014-SCT4-1994 establishes the requirements for places of business providing services for auto-inflating lifeboats. Diario Oficial, 12/14/98.
Construction and Modification Standards for Ships Published
Technical standards related to the construction and modification of ships have been published by the SCT (Secretaria de Communicacion y Transporte). NOM-017-SCT4-1995 establishes the requirements and specifications that blueprints for the construction and modification of ships must meet.
Additionally, the SCT published NOM-018-SCT4-1995 establishing requirements for the transport of acids and other chemical products in specialized ships. Diario Oficial, 12/14/98.
Standards on Fire Control Equipment Published
The SCT has published technical standards related to businesses providing servicing maritime fire control equipment. At the same time, the SCT published standards applicable to the handling storage and transport of dangerous materials in ports and ships. Diario Oficial, 12/15/98.
