Volume 6, Number 5, Page 5
Recent Developments
Agriculture & Mines
Mexico
Lab Standards Published
The Department of Agriculture, Livestock and Rural Development (Sagar) has published technical standards applicable to labs doing agricultural sanitation tests. NOM-056-ZOO-1995 establishes the technical requirements of diagnosis tests performed by labs completing such tests. Diario Oficial, 2/22/99.
Antitrust/Antidumping
ARGENTINA
Antitrust
Dumping Investigation Announced into Brazilian Javalina products. The Department of Industry, Commerce, & Mining announced the start of an investigation into the alleged dumping of frozen Javalina meat products by Brazilian firms. On September 23, 1998, the Foreign Commerce Office petitioned for an antidumping investigation into javalina products imported from Brazil under MERCOSUR tariff categories 8535.90.00 and 8536.90.90. Firms under investigation will have sixty (60) days to file the proper certifications of origin with the Customs Office, whileArgentine firms claiming negative impact from the Brazilian imports have forty-five (45) days to file their complaints with the Foreign Commerce Office.
Boletin Oficial, Resolucion 82/99, 2/18/99
Mexico
Preliminary Decision Published
The Department of Commerce and Industrial Development (SECOFI) published its preliminary decision on an antidumping investigation on certain types of oxides imported from the U.S. The product under investigation enters Mexico under tariff categories 2821.10.01 and 2821.10.02.
On February 20, 1998 De Mateo y Compañía S.A. de C.V. requested that SECOFI initiate an antidumping investigation on the above mentioned products. SECOFI has resolved to continue with the investigation, not imposing any preliminary antidumping duties at this time. Diario Oficial, 2/19/99.
Investigation on Metals from Denmark Announced
An antidumping investigation on certain metals imported from Denmark has been announced by SECOFI. On December 9, 1998 Tekchem, S.A. de C.V. requested the initiation of an antidumping investigation. Any interested parties must present requests to the Oficialía de Partes de la Unidad de Prácticas Comerciales Internacionales, Insurgentes Sur 1940, P.B., Col. Florida, México, D.F. 01030.
Banking & Credit
Guatemala
First-Ever Bank Merger Announced
In Guatemala's first-ever banking merger, two of its largest banks said on Tuesday they would combine to form the country's largest financial institution. Multibanco and Bancafe said the merger would give them combined assets of $459 million and combined equity of $24.6 million. With the merger, the new institution becomes the No. 1 financial entity in the country in terms of total assets, according to the government regulatory agency, the Superintendency of Banks. After the merger -- which will take four months to complete, Bancafe and Multibanco will have 12.7 percent of all accounts in the country's banking system. The new banking group, which does not yet have a name, would have a market share of 9.4 percent of monetary and savings deposits in the banking system.
Reuters News Sources
Mexico
Financing Limits Published
The Central Bank (Banco de Mexico) published the maximum amount that a bank may finance an individual, entity or group of people. The Central Bank established that the financing that a bank may issue to an individual, may not exceed 10 percent of its net capital stock, nor an amount exceeding 0.5 percent of the total capital stock of financial institutions. Financing to corporations may not exceed 30 percent of its capital stock nor 6 percent of the total of the capital stock of the institution. Diario Oficial, 2/26/99.
Customs
Argentina
Argentina Sets Sugar Export Quota Toward U.S. Market
Aimed at establishing a commercial presence in the United States sugar market, Argentina’s Department of Agriculture has designated a U.S. export quota equivalent to ten percent of their national organic crude sugar production. Quality control will be implemented by the National Quality & Sanitation Service to assure exported sugar meets an industry standard of ninety-six degree (96?) polarization. The decision continues Argentina’s policy of economic deregulation in the agricultural sector, with the ultimate goal of increasing producers’ competitivity.
Boletín Oficial, Resolución 72/99, 2/18/99
Brazil
Restrictions on MERCOSUR Imports Relaxed
In response to criticism of Brazil’s imposition of raised tariffs on their MERCOSUR partners, Brazil has removed tariffs for member nations on imports not exceeding US$80,000.00. Brazil had imposed such tariffs (in the aftermath of their currency devaluation) which violated the current practice of unrestricted trade within MERCOSUR and severely curtailed export activity by small and medium enterprises in the region. The Central Bank also relaxed regulations for their MERCOSUR import finance program, and extended it another 90 days, as they have on a rolling basis the last two years, until July 1, 1999.
Mexico
Tax Rules Amended
The tax rules for 1998 applicable to foreign trade were amended for the third time by SECOFI. The tax rules were originally published on March 16, 1998. Also amended were the annexes to the tax rules. Among them, annex 1 sets forth the official forms pertaining to foreign trade. Diario Oficial, 2/19/99.
Safeguards Published
SECOFI has published the rate for safeguards applied under NAFTA. Alleging that the quotas for imports have been exceeded, SECOFI applied a safeguard of 20 percent on apples imported from Canada under tariff category 0808.10.01.
On a different document, SECOFI announced safeguards of 20 percent on potatoes imported from the U.S. under tariff category 2005.20.01. Diario Oficial, 3/1/99.
Energy
REGIONAL
Bolivia-Brazil pipeline opened
On February 16 the presidents of Bolivia and Brazil inaugurated a natural gas pipeline connecting the two countries. Gas from the 3,000 kilometer pipeline, which extends from Rio Grande, Bolivia to Corumba, Brazil, will be used to produce electricity for the cities of Sao Paulo, Curitiba and Porto Alegre. The pipeline is being managed by the Bolivian State Petroleum Company YPFB, Gas Transboliviano SA and Petrobras SA from Brazil, and was financed by the Inter-American Development Bank, the World Bank and the Andean Development Corp. Under the original agreement, Petrobras signed a 20-year supply contract agreeing to buy 8-million cubic meters a day for the first seven years of the contract and then increase the supply to 16-million cubic meters a day for the subsequent years.
The Buenos Aires Herald
Venezuela
Oil Industry Reorganized
With the passing of Organic Law 36.537, 9/11/98, the national petroleum holding company Petroleos de Venezuela has begun centralizing all petrochemical activity (refining and hydrocarbons) performed within the country. The law also permits the government to open the internal market for distribution of gas and other combustible liquids to international competition.
Bentata Abogados, The Legal Report, 2/1/99
Government Administration
Mexico
Expenditure Cut
A program to reduce the expenditure of the federal government has been announced by the Department of the Treasury (SHCP) and the Department of the Comptroller and Administrative Department (SECODAM). The program calls for budget cuts in all of the federal public administration departments and entities.
Among the measures announced is the blocking of any type of 900 telephone lines, new contracts for studies or investigations are to be less expensive to those contracted out during the past year and any property not being used should be sold. Diario Oficial, 2/22/99.
PRI Deputies Push Casino Bill
Federal Deputies from the ruling PRI party presented a bill on March 3 that would authorize the operation of casinos in Mexico. The initiative, which will first be reviewed in committee, has the support of the PRI caucus in the Mexican Congress and a small group of opposition legislators on the Chamber of Deputies’ Tourism Committee.
The bill would reform the Federal Gaming Law (Ley Federal de Juegos y Sorteos), which was first enacted 50 years ago and is outdated, according to the proponents of the reform measure. By means of a comprehensive legal framework to regulate gaming, the reform seeks to promote job creation and increase government tax revenues, while helping Mexico’s tourism hot spots to be more internationally competitive. At the same time, the bill also intends to stamp out the illegal gaming that has proliferated in recent years.
If the initiative is approved by the Tourism Committee, it may be presented to the next ordinary session of the Mexican Congress which begins March 15.
Capín, Calderón, Ramírez y Gutierrez-Azpe, S.C., Mexico City
Government Procurement
Honduras
New Privatizations
The government of President Flores plans to bring about the concession of four government owned airports as well as the state telecommunications company, Hondutel. In the next 18 months, the state-owned electric company, ENEE, will also be sold.
So far there are five foreign companies interested in airport concessions which are to be granted for periods of 20 years. Additionally, four significant telecommunications companies, among them France Telecom and Telmex of Mexico, plan to present offers for Hondutel.
The Honduran government hopes to generate new revenues of US$500 million for the sale of half of Hondutel, and an additonal US$500 million for the sale of EENE. Additionally, the government will explore the privatization of four coastal ports in Honduras, of which three on the Atlantic and one on the Pacific.
Mexico
Pacific Airports Up for Bid
The Mexican government has issued call for bids for operating rights to the Pacific Airport Group, the second of four auctions in a process to turn operation of Mexico’s largest commercial airports over to private control. The winning bidder will acquire a 15% equity stake in the Pacific group, with an option for an additional five percent after the remaining shares are publicly floated.
The deadline for interested parties to file their registration form, in order to participate in the bidding, is April 16. Bids are due July 15 and will be opened July 29, with a decision to be announced shortly thereafter.
The Pacific Airport Group includes the airports of Puerto Vallarta, Guadalajara, San José del Cabo, La Paz, Aguascalientes, Bajio, Hermosillo, Los Mochis, Manzanillo, Mexicali, Morelia and Tijuana.
In December, Mexico awarded the Southeast Airport Group, based in Cancún, to an international consortium consisting of Mexican builder Grupo Tribasa, Copenhagen Airports A/S, French construction firm Groupe GTM SA and Spanish holding company Cintra. Bidders for the airport groups must include a Mexican company, an international airport operator, and a financial partner.
Capín, Calderón, Ramírez y Gutiérrez-Azpe, S.C. Mexico City. Diario Oficial, 2/25/99.
Immigration
Mexico
Constitutional Reform Amended
On March 20, 1997 the Mexican Constitution was amended in order to recognize dual citizenship for Mexicans. Now, the Department of the Interior (SG) has announced amendments to the transitory article number 3 of the 1997 amendments. The transitory article was amended to state that the provisions in effect prior to the amendments, will apply to those born or conceived during its effectiveness, only in the parts that favor them. Diario Oficial, 2/26/99.
Intellectual Property
Mexico
New Fees Published
A list of the new fees charged by the Mexican Industrial Property Institute (IMPI) for different services was announced by SECOFI. Some of those services, such as a trademark search, are available through the National Law Center for Inter-American Free Trade.
Taxes
ARGENTINA
New Taxes Target Private Transportation
Several new tax resolutions have been implemented by the Federal Administration of Public Revenue which largely focus on private automotive transportation. Additional taxes on the purchase of cars, motorcycles, boats, and airplanes will be imposed, along with a new VAT on personal goods purchased for the maintenance or enhancement of such transportation vehicles. Revenues from these taxes will go into the National Docent Incentive Fund. Another tax resolution enables nationally registered importers of natural gas and combustible liquid fuel to deduct expenses accrued during importation.
Boletin Oficial, Resolucion Generales 394/99, 2/18/99; 396/99, 2/19/99; 419/99, 2/26/99
Brazil
Excise tax on automobiles reduced
In efforts to stimulate new car sales and preserve jobs in the automobile industry, Brazil announced they will cut the industrial production tax on new cars by up to thirteen percent (13%), depending on the model. Brazilian automakers in return pledged not to lay off autoworkers for at least 90 days, after laying off nearly ten percent (10%) of their labor force in 1998. The move is among many new measures by the government aimed at stemming the current economic recession and unemployment trends, as well as to defuse the recent pressure from local and state governments.
The Buenos Aires Herald, 3/2/99
Mexico
Tax Rules for 1999 Published
As anticipated, the SHCP has published the tax rules for 1999. Each year the SHCP publishes such rules, which detail several aspects of the payment of taxes including income and sales tax. The rules are divided into different sections depending on the applicable law.
This year the tax rules were published before they were expected, since the rules for 1998 were supposed to be effective until March 31. Usually the rules come into effect on April 1, but this year it is expected that the new tax rules will take effect in March.
One of the most important changes in the new tax rules is that individuals may request the devolution of sales tax, not having to deposit a guarantee in cash, for a devolution of less than $25,000 pesos.
Also important is that individuals and corporations that have been registered in the tax registry for more than 3 years, and that are current with their tax payments of 1998 and 1999, will not longer be requested to deposit a guarantee in certain cases.
The tax rules imposed on government companies the requirement that suppliers pay the last three fiscal years on time, and be current in the payment of the 1998 and 1999 taxes. Individuals operating in Mexico must include the following statement in invoices: “tax withheld according to the Law of the Value Added Tax. Diario Oficial, 3/1/99.
Transportation
Mexico
Concession Rules Published
The rules for the concession to operate a national vehicle registry have been published by SECOFI. The call for bids will be published later in the Diario Oficial. Requests can be made at Montes Urales No. 470, 2o. piso Col. Lomas de Chapultepec Código postal 11000, México, D.F. Tel. (52-5)226-9352. Diario Oficial, 2/26/99.
Standards Published
Gases Transportation Standards Published
Technical Standards applicable to the multiple transportation of certain gases have been published by the SCT. NOM-046-SCT2/1998 establishes the characteristics and specifications for the construction of containers used in the multimodal transportation of pressurized liquid gases that are not refrigerated. Diario Oficial, 2/26/99.
