FEBRUARY 2007 EDITION ARCHIVE
Legal Updates
Federal Government Launches First Job Program
New program grants subsidies of up to 100% for employer contributions to Mexican Social Security Institute (IMSS). On January 23, 2007 a decree was published in the Official Journal of the Federation creating the First Job Program, which will enter into law on March 1, 2007 and last until November, 2012. The Program grants subsidies for employer contributions to the IMSS made on behalf of employees and applies to companies or individuals who create permanent new jobs. The subsidies are... [Read More]Recent Case Decision: Joint and Several Liability of Shareholders or Members of Mexican Entities.
In accordance with Article 26 (sections III and X) of the Fiscal Code of the Federation, joint and several liability of members or shareholders of Mexican entities exists when taxes are generated from cases in which the entity: a) has not registered itself in the Federal Taxpayer Registry; b) changes its tax domicile without presenting the corresponding notice of such change; or c) fails to maintain accounting records or hides or destroys such records. According to the Fiscal Code of the Federation... [Read More]Business & Politics Outlook
The Public’s Perception of President Felipe Calderon
Calderon wins support of sectors that did not vote for him. According to a poll by El Universal, two months after the beginning of the new federal administration, President Felipe Calderon enjoys the approval of a majority of Mexico’s population (58%), which is a considerably higher percentage than at the time of the July 2006 election. It is thought that this increase comes from independent voters and supporters of the Institutional Revolutionary Party (PRI). Notwithstanding... [Read More]Ambassador Appointments
Federal Senate has surprising reaction to those proposed by President Calderon. President Calderon proposed designees to the Mexican Federal Senate to fill eight diplomatic posts, among others Arturo Sarukhan, as Ambassador to the United States, and Emilio Goicochea, as Ambassador to Canada. Even though the proposals have been generally well received in public opinion and diplomatic circles, senators from the PRI and PRD have taken the position that they will not ratify any appointment... [Read More]Mexico, Among Countries with Greatest Growth Potential
Worldwide poll lists Mexico’s potential. The 10th Annual Global CEO Survey prepared by PricewaterhouseCoopers as part of the Davos 2007 World Economic Forum lists Mexico, behind Brazil, Russia, India and China, as heading the list of those countries where potential economic growth could occur during the next fifty years. The list is completed by Indonesia, South Korea and Turkey. Aside from this listing, it remains clear that structural reforms are needed to create conditions... [Read More]2006 Remittances Break Records
Remittances reach $25 billion dollars in 2006. According to a study by the Interamerican Development Bank (IDB), the amount of remittances sent from the United States to Mexico, which were measured at slightly more than $18 billion dollars in 2005, rose to $25 billion dollars in 2006. Analysts and members of the Border Affairs Commission of the Mexican Federal House of Representatives have signaled not only the need for accelerated job growth in Mexico, but also concern that the increase... [Read More]Economic Indicators
Pesos/Dollar Exchange Rate
The quoted exchange rate as of February 8, 2007 was $10.94 pesos per dollar.Mexican Stock Exchange
The Mexican Stock Exchange (BMV) closed on February 8, 2007 at 28,197.26 points.Interest Rates
On February 8, 2007, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 7.33%.Feature Website
www.sct.gob.mx
We recommend that our readers visit the web page of the Mexican Department of Communications and Transportation at www.sct.gob.mx where they may obtain useful information on the Mexican telecommunications, ports of entry, aviation, and ground, maritime and rail transportation sectors.