DECEMBER 2006 EDITION ARCHIVE
Legal Updates
Venezuela rejects G-3 Free Trade Agreement with Mexico and Colombia
On November 19, 2006 Venezuela formally withdrew from the G-3 Free Trade Agreement of the so-called G-3 Group made up of Mexico, Colombia and Venezuela. The withdrawal, which became effective as of November 19, 2006, states that the preferential customs duty rates provided by the trilateral free trade agreement will not apply to foreign trade transactions between Mexico and Venezuela. The Treaty will remain in effect and continue governing the trade relationship that exists between Mexico... [Read More]Notary Publics May Obtain Incorporation Permits via Internet
On November 29, 2006 a decree was published in the Official Journal of the Federation through which the Department of Foreign Relations (SRE) provided notice that it would now allow notary publics with advanced electronic signature authority to carry out permit applications for new corporations, permits to modify corporate bylaws, name changes, dissolutions, mergers and corporate spin-offs via the Internet through the SRE web portal. This means that all of these transmittals may be carried... [Read More]New Decree Benefiting Aviation, Manufacturing, Maquiladora and Export Services Industries
On November 29, 2006 the Department of Finance and Public Credit (SHCP) published in the Official Journal of the Federation a decree granting tax benefits relating to Mexican income tax and value added tax. The decree will particularly benefit the commercial aviation and cargo sector, specifically in regard to Mexican income tax; it will also benefit the Manufacturing, Maquiladora and Export Services Industries (IMMEX), especially in regard to administrative simplifications for value added... [Read More]New Regulations to the General Law for Environmental Waste
More than three years after the General Law for the Prevention and Comprehensive Handling of Environmental Waste was published, on November 30, 2006 the Regulations to such law were finally published in the Official Journal of the Federation. In conformity with said law, those producers, importers, exporters and distributors of products that are converted into hazardous waste, or companies that generate hazardous waste, consistent with corresponding official Mexican regulations (norms), are... [Read More]Business & Politics Outlook
Calderon Assumes Mexico's Presidency
Felipe Calderon Hinojosa took the oath of office on December 1st as President of Mexico in the Legislative Palace of San Lazaro in the face of blockades impeding his access to such chamber by legislators from the Party of the Democratic Revolution (PRD). Mexico’s new president announced that the three priorities of his government will be security, reducing poverty and creating jobs, and he provided various proposals to confront the problems that exist in these areas.The Mexican Executive's New Cabinet: Technocrat & Modernizer
The cabinet of President Felipe Calderon Hinojosa will be comprised of twenty secretaries that the international press has characterized in broad terms as being technocrats and modernizers. Among the cabinet appointments worthy of note are that of Secretary of the Interior (Secretario de Gobernación), which will be headed by Francisco Javier Ramirez Acuña; Secretary of Finance and Public Credit, which post will be held by Agustin Carstens; the Secretary of Economy, which will... [Read More]Stability in Mexican Financial & Currency Markets
Mexico’s financial markets did not experience any change in economic policy, and expectations are that current social issues can be addressed without incurring a fiscal deficit according to Banamex, banking subsidiary of Citigroup. For its part, with respect to currency issues, Monex Grupo Financiero reports that Mexican currency has performed favorably against the dollar, according to expectations of analysts and investors regarding future political and economic conditions.Slight Deceleration in Mexico's Economy
In accordance with the opinion of financial analysts polled by the Banco de Mexico and the Organization for Economic Cooperation and Development (OECD), Mexico had modest growth in 2007 of between 3.45 and 4.00%, given that expected structural reforms were not carried out during the first six months of the year and exportation and world economic markets did not perform well. Said poll conducted by the Banco de Mexico also indicated that inflation levels are estimated to be at 3.46%, with a... [Read More]Economic Indicators
Pesos/Dollar Exchange Rate
The quoted exchange rate as of December 7, 2006 was $10.86 pesos per dollar.Mexican Stock Exchange
The Mexican Stock Exchange (BMV) closed on December 7, 2006 at 25,639.31 points.Interest Rates
On December 7, 2006, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 7.33%.Feature Website
www.presidencia.gob.mx
We recommend that our readers visit the web page of the Office of the President of Mexico at www.presidencia.gob.mx where they may information regarding the first actions taken by the government of Felipe Calderon.