JULY 2008 EDITION ARCHIVE
Legal Updates
Constitutional Reforms in the Criminal Justice Area
On June 18, 2008, constitutional reforms to Mexico’s criminal justice system were published in the Official Journal of the Federation (DOF). One should consider that such reforms follow the general outline of the criminal justice system in the United States and, without doubt, are designed to be an effort to modernize Mexico’s criminal justice system. The central elements of the reform are ten constitutional articles containing changes in the written system of administering... [Read More]VII. Cash Deposits Tax Enters Into Force
On July 1, 2008, the Cash Deposits Tax (Impuesto a los Depósitos in Efectivo or IDE) entered into force, as a result of being approved last year as part of the fiscal reform package proposed by President Felipe Calderon. The IDE imposes a tax of 2% on cash deposits made during each month by individuals and entities if the total deposits during such monthly period exceed 25,000 pesos, with the understanding that the tax will be imposed on all bank accounts held by taxpayers in other banking... [Read More]Business & Politics Outlook
John McCain Visits Mexico City
Immediately following his visit to Columbia, U.S. Republican presidential candidate John McCain traveled to Mexico City. U.S. Ambassador to Mexico Tony Garza and ex-Florida Governor Jeb Bush accompanied McCain in attending a private meeting with President Felipe Calderon to discuss trade and immigration issues. McCain stated his support for immigration reform, but predicated his support on the need to first address the border security issue through construction of a wall, even a virtual... [Read More]Felipe Calderon Travels to Asia. Japan Hosts Summit of G-8 and G-5 Leaders
Mexican President Felipe Calderon recently began a tour of Asia. The tour included Calderon’s participation as Mexico’s representative in the Group of Five, or G-5, the group of countries comprised of the emerging economies, Mexico, Brazil, China, India and South Africa. The G-5 participated in talks with leaders from the Group of Eight, or G-8, which is made up of the United States, Canada, Germany, France, Italy, Japan, the United Kingdom and Russia, particularly on issues... [Read More]U.S. Congress Approves Merida Initiative
At the end of last month, the United States Senate approved an aid package called The Merida Initiative. Such initiative originated as a proposal made a few years back that seeks to establish U.S. assistance for Mexico and Central America in combating narco-trafficking. The plan includes a U.S. contribution of $400 million to Mexico, to be invested in counter-narcotics trafficking programs and increasing security in Mexico. For its part, Mexico will use the funds during fiscal year... [Read More]Mexico Expected to Improve its Competitiveness Rating in the Area of International Trade
The World Economic Forum (WEF) rated Mexico in its annual International Trade Report as being in 65th place out of 118 countries listed in order of competitiveness in the area of world trade. The lack of infrastructure, unnecessary customs procedures and high monetary costs are factors that, according to the report, impede Mexico from being more competitive in the international trade arena. However, it is expected that the Mexican federal government will achieve increased efficiency in... [Read More]Decree Amending Provisions of the Public Sector Procurement, Leasing and Services Law
On July 2, 2008, a Decree Amending and Adding various Provisions to the Public Sector Procurement, Leasing and Services Law was published in the DOF. The new provisions incorporate “subsequent offers of discount” (oferta subsecuente de descuento) into the Law, which is used in public bidding by bidders who carry out one or more subsequent discounts to improve the prices they initially offered. However, the possibility of offering a subsequent discount must be specifically... [Read More]Procedure for Collecting on Mexican Performance or Guaranty Bonds
In accordance with Article 3 of the Federal Bonding Institutions Law (Ley Federal de Instituciones de Fianzas, or LFIF), the beneficiary of a performance or guaranty bond must first initiate a claim on such a bond by presenting written notice to the bonding institution containing their claim, information relating to such claim and supporting documentation. The bonding institution will then have 15 calendar days to request more information, in which case the beneficiary of the bond will have... [Read More]Economic Indicators
Pesos/Dollar Exchange Rate
The quoted exchange rate as of July 10, 2008, was $10.30 pesos per dollar.Mexican Stock Exchange
The Mexican Stock Exchange (BMV) closed on July 10, 2008 at 27,865.55 points.Interest Rates
On July 10, 2008, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 8.15%.Feature Website
Recommendation to Our Readers
This month we recommend our readers visit the web page of the United Nations Organization for Education, Science and Culture (UNESCO), where they may obtain a list of the news sites declared as World Heritage Sites, which include, among others, San Miguel de Allende in the State of Guanajuato and the Biosphere Reserve of Monarch Butterflies, both located in Mexico.