Volume 6, Number 6, Page 6
Recent Developments
Agriculture
Mexico
Agricultural Disease Notification Rules Published
The Department of Agriculture, Natural Resources and Fisheries (SEMARNAP) has published a list of diseases that must be notified to the authorities. The list includes diseases that affect bees, cattle, pork and birds among others.
Antitrust/Antidumping
Mexico
Investigation on U.S. Plastics Initiated
An antidumping investigation has been initiated by the Department of Commerce and Industrial Development (SECOFI) on certain kinds of plastics imported from the U.S. The products are imported to Mexico under tariff category 4002.19.02. As of this writing, no antidumping duties have been assessed. Diario Oficial, 3/8/99.
Polystyrene from the U.S. Under Investigation
SECOFI announced it has initiated an investigation on imports of polystyrene imported from the U.S. The product enters Mexico under tariff categories 3903.90.05 and 390.90.99. No antidumping duties have been assessed at this time. Diario Oficial, 3/10/99.
Administrative Investigation Revised
An administrative investigation on steel imported from the U.S. was revised by SECOFI. On December 4, 1992 Industrias Monterrey, S.A. de C.V. requested the initiation of an antidumping investigation on steel imported from the U.S. Twenty days later, SECOFI published its resolution in the Diario Oficial to initiate an antidumping investigation.
On April 28, 1993 provisional antidumping duties ranging from 5.85 to 29 percent were assessed on different U.S. exporters. On October 4, 1993, a Mexican company initiated an amparo trial against the decision of SECOFI. The amparo was granted in favor of the Mexican company and was followed by a series of appeals. SECOFI, following a court order, has decided to confirm the resolution published on April 19, 1996. Diario Oficial, 3/11/99 and 3/12/99.
Banking & Credit
Argentina
Central Bank revises Lending Eligibility Requirements for SBE’s
The Central Bank of Argentina has revised the eligibility requirements for small and micro business enterprises for participation in their Global Credit Program. In accordance with the Law of Financial Organizations No. 21.526, public or private entities that want to participate must initially submit financial reports to the Central Bank which satisfy requirements set forth in B.C.R.A Communication “A” 2827 (levels AAA-BBB), and will have to periodically resubmit to maintain eligibility.
Boletín Oficial, Comunicacion “A” 2858, 2/17/99
Mexico
Capital Requirements Rules Amended
The Department of the Treasury (SHCP) amended the rules establishing capital stock requirements for auxiliary credit institutions operating in Mexico. The original rules were published on April 3, 1998. Diario Oficial 3/10/99.
Business Organizations
Mexico
Merges and Acquisitions Authorized
Several ventures have been approved by the Mexican Federal Commission on Competition. Among the most important is the authorization granted to Allied Signal, Inc. and AMP Incorporated to enter a joint venture. Additionally, the Commission did not object to the dissolution of a venture between Lucent Technologies Inc and Philips Consumer Communications de México, S.A. de C.V. Diario Oficial, 3/3/99.
Consumer Law
Mexico
Toy Labeling Standards Published
Technical standards setting up labeling requirements for toys have been published by SECOFI. NOM-015-SCFI-1998 establishes labeling requirements to all toys sold in Mexico. Diario Oficial, 3/5/99.
Customs
Argentina
Argentina Places Restraints on Brazilian Imports
Instead of imposing further tariffs or antidumping measures, Argentina has initiated a new bureaucratic registry to attenuate the impact of Brazil’s currency devaluation and possible dumping practices. Argentine importers will be required to enroll in the new registry, regulated by the Department of Foreign Commerce, and will have to submit applications on each MERCOSUR or Argentine tariff position in order to obtain permission before each import operation.
Permission will be granted by the Department of Foreign Commerce in accordance with formulas presented within Resolution 17/99, 1/22/99, and any subsequent modifying resolutions. While the registry will affect the flow of all foreign imports into Argentina, the move targets imports from within the MERCOSUR region, specifically Brazil, and aims to stabilize the Brazilain-Argentine trade market. Ambito Financiero, 3/4/99 Boletín Oficial, Resoluciones 17/99, 1/22/99; 59/99, 2/4/99; & 150/99, 3/10/99
Belize
Mexico and Belize Work Toward New Trade Alliance
Negotiations are underway between Mexico and Belize to establish a new trade partnership, involving short-term arrangements as well as a comprehensive trade agreement in the near future. The fast track strategy looks to facilitate specific exports from Belize to Mexico, adding beans, beef, and poultry to previous arrangements for rice exports. These specific arrangements will eventually be incorporated into a comprehensive agreement that recognizes the relative sizes of the two economies. Trade ministers from both countries will consult extensively with their private sector through each step of the negotiating process.
Mexico
Products Added to Tariff Category
SECOFI just announced it has added several products to a tariff category used in the Mexico-Costa Rica free trade agreement. Certain TV assembly parts were added to tariff category 8540.11 aa. Also published were the regulations of a Regional Committee of these two countries. Diario Oficial, 3/15/99.
Panama
Panama and Trinidad y Tobago Meet to Discuss Free Trade Agreement
High government officials from Panama and Trinidad y Tobago met recently to finalize details of a new free trade agreement, to be signed in the near future. Panama anticipates increased agricultural exports to Trinidad y Tobago in exchange for opening its markets to imports of timber, water tanks, and oil. An important feature of the tentative agreement is the opening of a Free Trade Zone in Trinidad y Tobago, emphasized by the Panamanian government as an opportunity to showcase the exports of both countries.
3/10/99, El Panamá América
Environment
Mexico
Form Use Extended
A form used to certify the origin of forestry raw materials in Mexico has been extended by the SEMARNAP. The form will be used for another 60 days as of March 10. Diario Oficial, 3/8/99.
Government Administration
Mexico
Constitution Amended
The Department of the Interior (SG) has announced several amendments to the Constitution. Articles 16, 19, 22 and 123 were amended. The amendments went into effect on March 9. Diario Oficial, 3/8/99.
Labor Law
Mexico
New Labor Contract for Textile Industry
A new labor agreement for the textile industry has been published by the Department of Labor and Social Services (StyPS). The agreement applies to all workers in the silk and artificial fiber industry. The agreement sets up minimum working conditions for the industry. The new minimum daily wage for the industry is of $70.44 pesos. Diario Oficial, 3/3/99.
Plastic Industry Labor Agreement Amended
The labor agreement applicable to the plastic industry was amended as announced by the STyPS. The amendment basically sets an increment of 18 percent on the wages paid by the industry. Diario Oficial, 3/5/99.
Medicine & Health
Mexico
Standards for Metal Parts Proposed
The Department of Health (SSA) has proposed technical standards establishing sanitary requirements for metal implants of stainless steel used in bone surgery. NOM-153-SSA1-1996 will apply to all industries, labs and places where such products are elaborated, imported or distributed. Diario Oficial, 3/3/99
Taxes
Argentina
Value Added Taxes on Goods Purchased by Foreigners
The Federal Tax Administration approved two new measures relating to the application of value-added taxes (VAT) on domestic goods purchased by foreign tourists. Purchases of nationally produced goods that equal or exceed AR$100 in value will be subject to the new tax. Vendors will be required to record and file each instance in which the tax was applied to purchases equal or exceeding AR$200 in value, to include data on the purchaser’s identity and country of residence.
Boletín Oficial, Resolución Generales 380/99 & 381/99, 2/10/99
Mexico
Annexes to Tax Rules Published
Over the course of the last few days, several tax annexes to the fiscal rules for 1999 were published by the Department of the Treasury (SHCP). Annex 1 was published first and includes the approved forms used by the SHCP.
Subsequently, annex 18 was published. The annex is a table of the income tax payments for those considered “minor contributors”. Finally, annexes 2, 3, 4, 6 and 7 have been published. Diario Oficial, 3/8/99, 3/12/99, 3/15/99, 3/16/99 and 3/17/99.
Tax Rules Amended
The first set of amendments to the 1999 tax rules have been published by the SHCP. It is expected that the tax rules will be amended several times during the year to come. Diario Oficial, 3/17/99.
