JUNE 2008 EDITION ARCHIVE
Legal Updates
Recent Case Decision – Infringement of Ejido Property Rights As a Result of the Assignment, Sale or Any Other Transfer of Ejido Land Parcel and Water Rights
On March 26, the Second Chamber of Mexico’s Supreme Court (Suprema Corte de Justicia de la Nación) approved by a unanimous vote the legal decision by contradiction of the decision: Ejido Land Parcel and Water Rights. The assignment, sale or transfer of rights by an individual Ejido member to a third party outside of the Ejido population nucleus infringes the property rights of the Ejido, which are collective by nature. This decision concludes that water rights pertaining to Ejido... [Read More]New Decree Provides Tax Benefits for Various Mexican Sectors
On May 9th, new tax benefits for Mexican taxpayers known as the “Primary Sector” were published in the Official Journal of the Federation. The Primary Sector includes agricultural, forestry, ranching, or fisheries, as well as the cargo transportation, passenger transportation and related transportation sectors, to be applied during fiscal year 2008. Such benefits include granting easier documentation and management of deductions for purposes of Mexico’s Income Tax (Impuesto... [Read More]Mexico Passes New Federal Tobacco Control Law
The General Law for the Control of Tobacco (Ley General para el Control del Tabaco) was published in the Official Journal of the Federation on May 30th. The purpose of the new Law is to regulate the use and importation of tobacco, as well as to protect the general population against exposure to tobacco smoke. The Law seeks to achieve a 100% smoke-free environment in public areas, workplaces and public transportation, as well as in schools. It also seeks to reduce the availability... [Read More]New Regulation of Outsourcing Companies
During the last decade, Mexico has seen the creation of many outsourcing services providers, which has led to such outsourcing companies assuming labor obligations and possible labor contingency liability generated from these labor relationships. This phenomenon has been accompanied by an unintended negative consequence, which is that often the outsourcing companies do not comply with minimum requirements of their employees and frequently disappear or constantly change names to avoid the corresponding... [Read More]Environmental Law Note – Amendments to Mexican National Waters Law
On April 18th, a Decree amending the second paragraph of Transitory Article 14 of the Amendment to Mexico’s National Waters Law (Ley de Aguas Nacionales) was published in the Official Journal of the Federation. The Decree is designed to achieve a reform of the National Water Commission (Comisión Nacional del Agua, or CNA), so that within a term of 12 months, such agency would fully organize on an administrative level all concessions for the exploitation, use or enjoyment of national... [Read More]Business & Politics Outlook
McCain States He Will Honor Terms of the North American Free Trade Agreement (NAFTA); Obama States Mexico Is His Priority in Latin America
The presumptive Republican candidate for the U.S. presidency, Senator John McCain, announced his support for eliminating trade barriers in international markets to facilitate access to export markets for U.S. small businesses, and promised to honor the terms of the North American Free Trade Agreement signed with Canada and Mexico. Senator McCain criticized his Democratic Party rival for President, Senator Barack Obama, who has stated he would renegotiate the treaty if elected President. ... [Read More]Mexico’s Automotive Industry: New Effects of Global Production Strategies
The Ford Motor Company (Ford) announced plans to manufacture its Fiesta model beginning in model year 2010 at its plant in Cuautitlán, Mexico, as part of a direct investment in Mexico that will reach $3 billion U.S. dollars. Mexican President Felipe Calderon characterized the investment as the largest in the history of Mexico’s automotive industry. It is hoped that the new production line will generate approximately 25,000 new direct and indirect jobs. Ford president... [Read More]Chinese Goods Again Subject to Compensatory Duties on Importation into Mexico
After threats from the private sector to initiate a protest against China before the World Trade Organization (WTO), and after criticism leveled against officials from Mexico’s Department of the Economy, the Secretary of such cabinet level agency Eduard Sojo announced that private sector leaders had approved a proposed Trade Transition Agreement with China (Acuerdo Comercial de Transición con China). If approved by Mexico’s Congress, the application of compensatory duties... [Read More]Economic Indicators
Pesos/Dollar Exchange Rate
The quoted exchange rate as of June 12, 2008, was $10.43 pesos per dollar.Mexican Stock Exchange
The Mexican Stock Exchange (BMV) closed on June 12, 2008 at 30,475.44 pointsInterest Rates
On June 12, 2008, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 7.94%.Mexico IP Info
Registration of Copyrighted Works
Copyrights in Mexico are recognized by the federal government in favor of creators of literary and artistic works, including the various branches of literature, music, dramatic theater, dance, painters, sculptors, architectural works, cinematography and audio/visual programs, radio and television programs, photographic works, compilations and computer programs. In accordance with international law, Mexico’s Copyright Law (Ley del Derecho de Autor) grants protection to an artistic work... [Read More]Feature Website
http://www.promexico.gob.mx
This month we recommend our readers visit the webpage of PROMEXICO, which promotes investment and international trade in Mexico at http://www.promexico.gob.mx/ where one may obtain general information concerning investment and import/export opportunities in Mexico.