SEPTEMBER 2007 EDITION ARCHIVE
Legal Updates
Mexico Enacts Cape Town Treaty and Protocol Relating to International Guaranties for Air Transport Equipment
On September 5 and 6, 2007 decrees promulgating the Treaty relating to International Guaranties on Air Transport Equipment adopted in Cape Town on November 16, 2001 were published in the Official Journal of the Federation, which will take effect on November 1, 2007. The purpose of such treaty is to provide security and certainty in international aircraft finance transactions involving the purchase of aeronautical equipment (airplanes, engines and helicopters), railroad rolling stock and other... [Read More]Payment of Expenses in Mexican Legal Proceedings
The concept of expenses in Mexican law is understood to be those costs regulated by the law that the losing party must pay to the prevailing party in a civil or commercial lawsuit, which are indispensable for initiating, prosecuting and concluding any such lawsuit. These expenses must be directly related to the legal proceeding in such a way that the legal proceeding could not be concluded without them. Based on the foregoing, the concept of costs does not include unnecessary expenses... [Read More]Limits on Deductibility of Rent for Temporary use of Automobiles
Various interpretations exist as to the maximum amount of deductibility of payments made for the temporary use of automobiles. In this regard, Article 32 paragraph XIII of the Income Tax Law (Ley del Impuesto sobre la Renta or LISR) provides that “amounts paid for the temporary use of automobiles are deductible only in amounts not exceeding $165.00 pesos per day per automobile, so long as the requirements for deductibility of automobile expenses established in paragraph II of Article... [Read More]Business & Politics Outlook
Mexican Trucks Begin International Delivery of Cargo to the U.S. Interior
On September 7th, the first two Mexican trucks approved to make international deliveries in the interior of the U.S. crossed the U.S./Mexico Border. The opening of North American highways to international cargo movements occurred under the pilot program implemented by the U.S. to fulfill its obligations under the North American Free Trade Agreement (NAFTA). U.S. transportation interests and legislators have blocked this program for 12 years, and recently the U.S. Senate approved a bill... [Read More]President Felipe Calderon’s International Tour
Mexican President Felipe Calderon recently visited New Zealand, Australia and India in order to form and strengthen trade and development ties among these countries and Mexico. In Australia, he participated in the XV Summit of Leaders of the Asia Pacific Economic Cooperation group (APEC), which for the first time dealt with the issue of global climate change. In India, the Mexican President focused his visit on learning more about successful information technology and off-shore services... [Read More]Mexican Senate Approves Electoral Reform
The Mexican Senate approved an electoral reform which, among other points, provides for the election of a new chairperson of the Federal Electoral Institute (IFE) and procedures for the election, in staggered terms, of the remaining commission members. In addition, the reform establishes that political parties may no longer purchase, on their own or through third parties, radio and television time. In the future, political parties will be able to use only such time as the Mexican government... [Read More]Increase in Mexican Consumption Financed by Credit Card Debt
According to a report published by the Banco de Mexico (Mexican Central Bank) concerning monetary reserves and financial activity, the most dynamic segment of the Mexican economy occurred in the growth of credit card purchases of consumer goods. Such credit card loans increased by 70.4 million pesos to reach a current annual accumulated balance of 249.70 million pesos, which translates to a 33.7% increase in real terms over the previous year, as noted by Mexico’s Central Bank.Economic Indicators
Pesos/Dollar Exchange Rate
The quoted exchange rate as of September 13, 2007 was $11.07 pesos per dollar.Mexican Stock Exchange
The Mexican Stock Exchange (BMV) closed on September 13, 2007 at 30,302.23 points.Interest Rates
On September 13, 2007, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 7.70%.Mexico IP Info
The Importance of Registering a Trademark Upon Deciding to Use Such
As mentioned in prior editions, Mexico recognizes that one who demonstrates first use of a trademark has priority rights to register such mark and has exclusive rights to use of the mark. It is also important to note that given the fact that since in Mexico there is no legal means to oppose registration of a trademark that is in the process of being registered, it becomes essential to register the mark as soon as one decides to put the mark into use. Article 9 paragraph XVI of the Mexican... [Read More]Feature Website
http://portal.sct.gob.mx
This month we recommend our readers visit the webpage of the Department of Communications and Transportation (Secretaria de Comunicaciones y Transporte or SCT) where they will find updated information pertaining to the cross-border trucking pilot program between Mexico and the United States of America.