Volume 6, Number 13, Page 3
Recent Developments
AGRICULTURE
Mexico
Disease Controlled
The state of Sonora has been declared free of the aujesky disease by the Department of Agriculture, Livestock and Rural Development (SAGAR). On 1998, amendments to a technical standard to combat the disease were presented. Local pork producers have applied the new standards and as a result the disease has been eradicated from the state of Sonora. In order to maintain the zone free of the disease, control measures to transport and sell pigs from areas still combating the disease will remain effective. Diario Oficial, 6/9/99.
ANTITRUST/ANTIDUMPING
Mexico
Appeal Decided
An appeal on an antidumping investigation has been resolved by SECOFI. On September 8, 1998 SECOFI announced antidumping duties on corn syrup imported from the U.S. under tariff categories 1702.50.01, 1702.60.01, 1702.60.02 and 1702.60.99, among others. According to the decision, the duties were previously eluded by importing goods under different categories. The antidumping duties imposed were of up to US $90.26 per metric ton.
On November 11, 1998 Almidones Mexicanos S.A. de C.V. appealed the decision. SECOFI decided to confirm its decision of September 1998. Diario Oficial, 6/14/99.
Case Goes to NAFTA Head Authorities
The Mexican section of the NAFTA secretariat has submitted to the secretariat a request to review a decision on an antidumping case. On May 6, LTV Steel Company, Inc. and National Steel Corporation requested a bi-national panel to review the case. A similar petition was announced the same day. Diario Oficial, 6/14/99.
Case on U.S. Steel Decided
SECOFI has published its final decision of an antidumping investigation on U.S. steel. On February 7, 1992, Hylsa and Ahmsa requested an antidumping investigation on hot rolled coil and sheet steel from the U.S. On April 28, 1993, SECOFI imposed antidumping duties to the products from the U.S.
An amparo trial was promoted by some U.S. companies; the Federal Court later granted them the amparo.
Later on, SECOFI and the Mexican companies appealed the amparo, but the decision was confirmed.
In order to comply with the judgement of the court, SECOFI once again analyzed the antidumping investigation and ordered new antidumping duties. The U.S. companies complained about the new decision to the District Court which accepted the complaint.
Once again SECOFI reviewed its decision and imposed duties of up to 28.67 percent. Diario Oficial, 6/15/99
Appeal Resolved
An appeal to an antidumping investigation on U.S. bond paper has been published by SECOFI. On October 28, 1998 SECOFI published its decision on an antidumping investigation on U.S. bond paper imported under tariff category 4823.59.99. Antidumping duties of up to 17.69 percent were imposed. The decision was appealed on January 18. SECOFI resolved the appeal by confirming its previous decision. Diario Oficial, 6/16/99
BANKING & CREDIT
ECUADOR
Banking Reforms
The Executive Branch of Ecuador is reforming the structure of the Agency of Deposit Guarantees (AGD) by granting veto power to the Superintendent and by eradicating the duality of functions existing within the Banking Group and the Bank Superintendency. The newly appointed General Manager of the AGD will continue to make reforms in the Agency’s internal structure. The Executive further plans to reform a series of banking laws, including the Institutions of the Financial System Law and the Reordanance in Economic Material in the Area of Taxes and Finance.
El Comercio, 6/9/99.
MEXICO
IRA Rules Published
A new set of rules applicable to IRA administrators was published by the Department of the Treasury (SHCP). Circular Consar 07-3 amends the rules to register workers for companies administrating IRA accounts and those entities that operate the National Database of IRA. Circular Consar 28-3 amends rules to trespass accounts and Cirular Consar 30-4 amends rules to make changes in the National Database of IRA accounts. Diario Oficial, 6/14/99.
CONSUMER LAW
MEXICO
Weighing Devices Subject to New Standards
New standards applicable to non-automatic weighing instruments have been published by SECOFI. NOM-010-SCFI-1994 establishes technical and metrology requirements as well as verification methods to non-automatic weighing instruments. The new standard repeals technical standard NOM-010-SCFI-1993. Diario Oficial, 6/9/99.
List of Verification Entities Published
SECOFI has published a list of several entities authorized to verify compliance of labeling technical standards. The list includes the address and phone numbers of the entities authorized to certify that a product complies with technical standard NOM-050-SCFI-1994. Also listed were those entities that may certify compliance with NOM-051-SCFI-1994 which establishes labeling requirements for foods and certain non-alcoholic beverages. Diario Oficial, 6/11/99.
Opinions Issued
Several opinions by the Federal Commission of Competition were published in regards to ventures. On one of the cases, the Commission decided not to oppose a venture between TV Azteca, S.A. de C.V.; Televisora del Valle de México S.A. de C.V. and Corporación de Noticias e Información, S.A. de C.V. Additionally, several opinions were rendered by the commission. Diario Oficial, 6/15/99.
CUSTOMS
MEXICO
Tariffs for Trade Agreement Amended
SECOFI has announced the repeal of tariffs published on a trade agreement on August 16, 1990. On such date, the Regional Agreement number 5 for the Recuperation and Expansion of the Intra-regional Commerce was published as entered by Mexico, Argentina, Bolivia, Brazil, Colombia, Chile, Ecuador, Paraguay, Peru, Uruguay and Venezuela.
The member countries of the agreement resolved to repeal such agreement since the agreement was not being in enforcing or requesting the enforcement of such trade agreement. Diario Oficial, 6/14/99.
Safeguards Applied
New safeguards have been applied to apples from the U.S. as established by SECOFI. Since import quotas for apples from the U.S. have been exceeded, SECOFI announced that according to NAFTA import duties of 20 percent will apply to those apples imported under tariff category 0808.10.01. Diario Oficial, 6/14/99.
ENERGY
BRAZIL
Oil and Gas Auctions
The National Petroleum Agency (ANP) and the National Treasury of Brazil sold twelve of twenty-seven blocks of oil exploration and production areas to eleven companies in the first round of auctioning. The largest purchases were made by the Italian company AGIP, the Argentine YPF and Brazil’s petrobras, each acquiring four areas of exploration. texaco acquired three areas; exxon obtained two, one singly and another in consortium; American Amerada Hess and Canadian Kerr-Mcgee acquired one in consortium with Petrobras; UNOCAL acquired one area for gas exploration in consortium with Texaco and YPF and is conducting further negotiations with Petrobras for access to a second area; BP Amoco purchased one area in consortium; and Shell entered a consortium with British Borneo. The failure to obtain bids for eleven of the fifteen areas in the second day of bidding postponed the final auctioning until a later date, which is yet to be determined.
Brazil’s National Bank of Economic and Social Development (BNDES) has created a special line of credit for purchasers of the newly privatized petroleum exploration areas. For the next four years, the Support Program for Investments in Petroleum and Gas (Propag) will finance up to 80 percent of the projects of Petrobras and the international companies, with a 2.5 percent duty tax. Propag offers the credit to projects in all aspects of production, including projects in infrastructure and the building of refineries and thermoelectric power plants.
Journal do Brasil, 6/16/99, 6/17/99, 6/19/99.
TRINIDAD & TOBAGO
Deep Sea Cable Laid
A 25-megawatt deep-sea cable has been laid connecting Toco and the Milford Bay sub-station in Trinidad. The cable includes a fibre optic component and increases Tobago’s electric-supply capacity threefold. The cable was laid by the Swiss company Pirelli through the use of a Italian vessel.
The Guardian, 6/14/99.
ENVIRONMENT
MEXICO
Standards Set
The Department of Environment, Natural Resources and Fisheries has published new technical standards for paints. NOM-123-ECOL-1998 establishes the permissible content of volatile organic compounds (VOC) in the manufacture of certain kind of paints and coating. The standard also sets the procedures to determinate the content of VOC in the paints and coatings. Diario Oficial, 6/14/99
FOREIGN INVESTMENT
Brazil
Brazilian Fixed-Income Funds Opened to Foreign Investment
On April 5, 1999, the Central Bank of Brazil issued Circular 2880/99, providing for investment of foreign capital resources in fixed-income funds, bonds issued by the Brazilian National Treasury and/or by the Central Bank of Brazil, as well as in fixed-income bonds issued or accepted by financial institutions (DOU-I, April 6, 1999).
Norohna Advogados, Brazil, 6/22/99.
BNDES Continues Privatizations Process
The National Development Bank of Brazil (BNDES) continues its privatization program in which 23 state-owned companies will be sold by the year 2000 on schedule. The state bank of Bahia (Baneb) was sold to Badesco, one of the two largest private banks in Brazil, on June 22 for R$260 million. Datamec, the data processing company of the National Savings Bank, was sold to Unisys of Brazil on June 23 for $R83 million.
Journal do Brasil, 6/23/99, 6/24/99.
New Investment Funds Transparency Rules in Brazil
On May 5, 1999, the Brazilian Securities Commission (Comissao de Valores Mobiliarios) issued Rulings No. 302, 303, 304, 305, 306, and 307, altering the legal provisions on funds investing in shares and/or securities. With the main intention of protecting investors and providing the public with adequate information on investments, these rulings seek to eliminate the differences between the various funds investing in such types of commercial paper. Among other provisions, the rulings establish that from May 13, 1999, all of them will be merely designated “Securities Investment Funds” (Fondos de Investimentos en Titulos e Valores Mobiliarios). Instructions No. 302, 303, 304, 305, 306, and 307 provide respectively for:
(I) general rules for the organization, administration, operation, and disclosure of information regarding FITVM;
(II) composition and diversification of the FITVM portfolios;
(III) funds investing in FITVM shares;
(IV) accounting principles and procedures for evaluation of FITVM;
(V) registration of portfolio managers with CVM, and
(VI) registration of public distribution of debentures issued by securitization companies.
Norohna Advogados, Brazil, 6/22/99.
Venezuela
Privatization of Aluminum Companies
The Venezuelan government will begin the sale of its aluminum companies to the private sector later in the month of July. The companies for sale include the smeltering plants Venalum and Alcasa, the anode producer Carbonorca, and the bauxite and alumina producer Bauxilum, all of which are subsidaries of the Venezuelan Corporation of Guyana (CVG). The first facilities to be privatized, the smeltering plants Alcasa I and II, will be auctioned in the form of a strategic association, followed in the second round by Alcasa’s port, which is able to accommodate vessels of up to 40,000 metric tons. The smeltering plant Venalum will be sold in the third round. As with Alcasa, strategic associations are planned for Carbonorca and Bauxilium. The sale has attracted the attention of international investors, including the United States’ Alcoa, the Monreal-based Alcan, Billington from the U.K., and Pechiney of France.The previous administration attempted to sell the CVG-owned Alumina Corporation of Venezuela (CAV), but failed due to an inflated price and ambiguous law.
Venezuela OnLine News, 6/11/99.
GOVERNMENT ADMINISTRATION
Mexico
Constitution Amended
New amendments to the Constitution were announced by the Department of the Interior (SG). Amended were articles 94, 97, 100 and 107. The amendments basically deal with the judicial branch and the operation of the Judicature Council, an entity that oversees the operation of the court system in Mexico. Diario Oficial, 6/11/99.
Intellectual Property
Honduras
Enforcement Of Rights Under Honduran Laws
In Honduras the right to the exclusive use of a mark is acquired through its registration with the Honduran Trademarks Office. The registration of a mark is granted under the responsibility of the applicant and without prejudice to the rights of third parties. The adoption and use of a mark without its registration with the above office, does not entitle to its adopter/user to claim damages and/or exercise actions against the unauthorised use of the said mark made by third parties.
The owner of a right protected under the present law, along the lines mentioned above, may file an action against any infringing party before the competent Court of Law. The following measures may be demanded in an infringement action:
- The ceasing of the infringing acts.
- The indemnification of damages.
- The seizure (embargo) of the goods resulting from the infraction or of the means which served to perpetrate the infraction.
- The necessary measures to prevent the continuation or repetition of the infraction(s), including the destruction of the seized goods or means, when that becomes indispensable.
The civil action for the infringement of rights conferred by Honduran Law, will prescribe after two years counted since the date in which the owner had knowledge of the infraction, or five years counted since the last date in which the infringement action occurred, whichever comes first.
The Trademarks Office may also issue orders to Customs to stop or prevent the importation into the country of counterfeit goods. For doing this, a petition must be filed before the said office, enclosing copies of the pertinent trademark/service mark registrations and submitting samples of the infringing/counterfeited goods. Other argumentation may also be filed, depending on the specific case. Some training to Custom Officials to teach them how to distinguish counterfeit goods from the original ones may also be needed. The way of doing this is individually determined.
Lic. Ricardo Anibal Mejia M.
Contribution for the Inter-American Trade Report
LABOR
BRAZIL
New Minimum Wage in Brazil
On April 30, 1999, President Fernando Henrique Cardoso signed Provisional Measure No. 1824, which establishes the new value of the minimum wage to be valid throughout Brazil as from May 1, 1999. The new minimum wage is R$136,00 (one hundred and thirty-six reais)
Norohna Advogados, Brazil, 6/22/99
REGIONAL
EU Dialogue with Mercosur Scheduled for July 2001
Negotiations for creating a free trade zone between Mercosur and the European Union are scheduled to begin in July of 2001, earlier than the proposed 2005 date. Representatives from Chile will also be present at the negotiations.
Journal do Brasil, 6/22/99.
TAXES
ECUADOR
New Invoicing Regulations
The Ministry of Finances in Ecuador has issued a new invoicing regulation to complement the Public Finances Reform Law. All transactions exceeding ten thousand sucres must be supported with one of seven documents: invoices, sale tags, sale liquefaction, tickets, authorized documents (plane tickets, etc.) and credit or debit bills. Currently, untaxed services include health services, electricity, book-printing, and professional service loans valued at less than ten million sucres. Products that are not taxed include food and seed products, tractors, medicine, paper and books, among other items.
El Comercio, 6/9/99.
TRANSPORTATION
Chile
Air Transportation Agreement with Mexico
The Chilean Government has signed an agreement with the Government of Mexico establishing regular air services for the transport of passengers, mail and cargo between the two countries (Boletin No. 2256-10). The agreement establishes traffic rights and allows for open competition between companies. The agreement allows Chilean legislators to determine tariffs, rather than impose the system of double approbation the Mexican law had promulgated.
6/16/99.
Mexico
Airport Safety Subject to New Rules
The Department of Communications and Transportation (SCT) has published a new program for airport safety. A brief description of the rules were published but the complete text may now be requested from the Dirección de Aeropuertos de la Dirección General de Aeronáutica Civil de la SCT, Providencia 807, 5o. piso, Col. Del Valle, México, D.F. 03100. Diario Oficial, 6/15/99.
TOURISM
PERU
Private Sector to Invest in Tourism Industry
The Tourism and Telecommunications Comission in Peru has approved an initiative to transfer formerly public infrastructure projects and services in the tourism industry to the private sector. The initiative includes the creation of the Organization to Supervise Investment in Public Works and Tourism Services (OSITUR), a public organization ascribed to the Ministry of Industry, Trade, Integration and International Trade Negotiations (MITINCI).
El Heraldo, 6/8/99.
