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EDITORIAL COUNCIL UNITED STATES - MEXICOCHAMBER OF COMMERCEAlbert C. Zapanta, President & CEO, Binational Headquarters; Francisco López Espinoza, CEO, MULTICOLOR Industria Gráfica; Eric Rojo, Vice-President/Mexico Liaison; Joseph R. Chapa, Vice-President, International Trade Development Centers; Gerardo Funes, Vice-President of Communications; Cecilia López, Publishing Manager; Alberto García-Jurado, Director Cultural of Effectiveness Center; Jill Martínez, publisher, www.IrvingOnline.com; and Francisco López Rivera, General Manager of MULTICOLOR Industria Gráfica.

PROMEXE´S ADMINISTRATIVE COUNCILRafael López [email protected]

Francisco López [email protected]

Francisco López [email protected]

PUBLISHING COORDINATORSExecutive DirectorRafael López [email protected]

Vice-President of CommunicationsGerardo [email protected]

Publishing ManagerCecilia Ló[email protected]

CONCEPT & MAGAZINE DESIGNEditorial CoordinatorYolanda Ivette Castillo Vá[email protected]

Graphic DesignerAreli Jeanette Sayas Herná[email protected]

EDITORIAL CONTRIBUTORS

PRINTED

For advertisinginquiries, contact:

Rafael Ló[email protected] Director

Gerardo [email protected] of Communications

Cecilia Ló[email protected] Manager

Cover photography by FONATUR

ALLIANCE is a quarterly publication of the United States-Mexico Chamber of Commerce and Promotora Mexicana de Ediciones S.A. de C.V., for the binational enterprise sector. Mexico office: Av. Jose Maria Chavez No. 3408, Ciudad Industrial; Aguascalientes, Ags., Mexico (www.promexe.com) United States office: United States-Mexico Chamber of Commerce, 5510 Cherokee Ave. Ste. 120, Alexandria, VA 22313-2320. Mailing address: P.O. Box 14414, Washington, D.C. 20044.

Printed by Multicolor Industria Grafica, S.A. de C.V. Av. Jose Maria Chavez No. 3408, Ciudad Industrial; Aguascalientes, Ags., Mex. Specifications: Total production; 2,000 units, covers: couche paper 135 grs. Varnish UV, interiors: couche paper 135 grs. Impression: offset full color.

The views expressed in this magazine are the responsibility of the authors and do not necessarily reflect official positions of the U.S.-Mexico Chamber of Commerce, its members or supporters. Our goal is to present a broad range of perspectives on shared bilateral issues.

Alejandro RamosBlanca BerthierEduardo Bialostozky Elba HentschelEnrique Perez BouquetGabriela Michán

elcome to this edition of Alliance Magazine, a publication by the United States – Mexico Chamber of Commerce, designed to inform and inspire our audience about the activities of the Chamber and the U.S. – Mexico Cultural and Educational Foundation.

In this edition of Alliance we see how FONATUR is developing an Integrally Planned and Sustainable Development (IPSD), in the State of Sinaloa, located on the Pacific Coast of Mexico. This development will have golf courses, marinas, docks, breakwater, transport infrastructure and urban services such as roads, bridges, potable water supply, sanitary sewer systems, wastewater treatment plants, irrigation network, electricity, drainage system and its own telecommunications network. At the same time, this development will focus on limiting negative environmental impacts and ensure the sustainability and regeneration of the environment in the surrounding the area.

Also in this edition, we are pleased to include several key contributors including Ed Drusina, commissioner of the International Boundary and Water Commission, who has written a piece on the history and responsibilities of applying the boundary and water treaties between the two countries. We would also like to thank Robert Martinez, chairman of the Greater Irving-Las Colinas Chamber of Commerce for his article on the regional infrastructure and its impact on trade with Mexico; Geronimo Gutierrez, Managing Director, North American Development Bank, for writing about the “NADBank: An Infrastructure Bank for the U.S.-Mexico Border Region”; and Manuel Sanchez, member of the governing board of the Bank of Mexico, for his overview of the Mexican economic outlook.

In May, the Chamber hosted its annual meeting, conference, and Good Neighbor Awards gala dinner in Washington, D.C. This conference, entitled U.S. – Mexico Economic Recovery and Stability 2011, addressed many of the major issues facing both countries’ economies and their recovery process. The Good Neighbor Awards were presented to Ben S. Bernanke, chairman of the Board of Governors, U.S. Federal Reserve System; Agustin Carstens, governor, Bank of Mexico; Enrique Peña Nieto, governor of the State of Mexico; Juan Rebolledo, Vice President International Affairs, Grupo México; Eduardo Serrano, president and CEO of Ford Mexico, and the Honorable Solomon Ortiz (TX-D), U.S. Representative 1983-2010.

We hope you enjoy this edition of Alliance Magazine. We look forward to seeing you at our future events, especially two coming up in Mexico City at the end of November: The 1st GIET Global Infrastructure & Eco-Technology Tradeshow and Conference, which will take place on November 29 and 30 at Mexico City´s World Trade Center Convention Center, followed by our Annual Binational Conference and Gala on November 30 and December 1, 2011.

Finally, the Chamber will be publishing a series of white papers on issues related to U.S. - Mexico bilateral relations. The first “U.S. - Mexico Security Cooperation”, will be followed by publications on immigration and its economic benefits, and tourism in Mexico. Others will be announced soon. For more information, please contact the Washington, D.C. office.

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Albert ZapantaPresident & CEO

Jill MartinezJosie OroscoMarie Alsace GalindoMarlen MarroquinUSMCOC Chapter PueblaSergio Ponce

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MEMBERS CORNERTÍTULO PENDIENTE

CHAPTER ACTIVITIES...ACTIVIDADES DEL CAPÍTULO...

BINATIONAL EVENTEVENTO BINACIONAL

MEMBER HIGHLIGHTSMIEMBRO DESTACADO

THE COVERARTÍCULO DE PORTADABECOME A PART OF PLAYA ESPIRITUFONATUR’S NEWEST INTEGRALLY-PLANNED AND SUSTAINABLE RESORT IN SINALOA

Azteca America: The Force of Television for a Decade

Helping Small Businesses Gain Access to Resources Will Reap Enormous Returns for Latin America’s Economic Recovery

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OPINIONOPINIÓN

The International Boundary and Water Commission, A Long History of U.S.-Mexico Cooperation

Three Issues for Mexico’s Economic Outlook

NADBank: An Infrastructure Bank for the U.S.-Mexico Border Region

Regional Infrastructure and Its Impact on Trade with Mexico

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CHAPTER OFFICESTHE AMBASSADOR OF GOOD BUSINESSwww.usmcoc.org

Al ZapantaPresident & [email protected]: 703-752-4751Fax: 703-642-1088

California Regional ChapterLos Angeles, CAMarlen MarroquinExecutive Director2450 Colorado Ave., Suite 400ESanta Monica, CA 90404Tel: 310-586-7901Fax: [email protected]

Southwest ChapterDallas, TX Josie OroscoExecutive Director901 Main Street, 44th. FloorDallas, TX 75202Tel: 214-747-1996Fax: [email protected]

International Trade Development and Assistance CenterJoe ChapaExecutive Director207 Mandalay CanalIrving, TX 75039Tel: [email protected]

Northeast ChapterNew York, NYAlejandro RamosExecutive Director1540 Broadway, Suite 1400New York, NY. 10036-4086Tel: 212-471-4703Fax: [email protected]

Southeast ChapterRaleigh, NCPeter AppletonPresident1506 Darby Place.Goldsboro, NC 27534Tel: [email protected]

Mid-America ChapterChicago, ILBlanca BerthierExecutive DirectorOne Prudential Plaza130 E. Randolph Dr., 36th FloorChicago, Illinois 60601Tel: 312-729-1355 / 312-729-1356Fax: [email protected]

Inter-American ChapterMiami, FLElba HentschelExecutive Director1441 Brickell Ave. Suite 1400Miami, Florida 33131Tel: 305-374-7401Fax: [email protected]

Pacific Northwest ChapterSeattle, WAJorge Madrazo CuéllarPresident15100 S.E. 38th Street, #728Bellevue, WA 98006-1765Tel: [email protected]

Las Vegas ChapterLas Vegas, NV.Carlos OlamendiPresident10728 Royal Pine Ave.Las Vegas NV 89144Tel: 310-586-7901Fax: [email protected]

Mid-Atlantic ChapterWashington, D.C.Eduardo BialostozkyTrade RepresentativeAlexandria, VA 22312Tel: 703-752-4752Fax: [email protected]

Pacífico ChapterGuadalajara, JalEnrique Pérez Bouquet SantoscoyExecutive DirectorAv. Hidalgo #1443 Planta BajaColonia Americana C.P. 44160Guadalajara, Jal.Tel: (33) 3825-5454 Ext. 188Fax: (33) 3825-5454 Ext. [email protected]

Guanajuato ChapterLeón, Gto.Sergio López PonceExecutive DirectorBlvd. Campestre No. 1215, Int. 12Col. PanoramaLeón, Gto. 37160Tel: (477) 779-5670Fax: (477) [email protected]

Puebla ChapterPuebla, Pue.Vidaur MoraExecutive Director31 Poniente No. 41282-B Col. Reforma SurPuebla, Pue. 72160Tel: (222) 403-2908Fax: (222) [email protected]://usmcocpue.org

Querétaro ChapterQuerétaro, Qro.Marcela SotoExecutive DirectorIsas y Asociados Contadores PúblicosRufino Tamayo # 2Col. Pueblo NuevoQuerétaro, Qro. 76900Tel: (442) [email protected]

Cancun ChapterCancún, Q.R.Evelyn Pintado CerveraExecutive DirectorCalle Chacá 19 Mz. 1 Sm.23,Cancún, Q.R. C.P. 77500Tel. (998) 193-1260Fax (998) [email protected]

Aguascalientes ChapterAguascalientes, Ags.Alejandro VázquezExecutive DirectorAv. Independencia 1602Col. FátimaAguascalientes, Ags.Tel.: (449) 914-6863 y (449) [email protected]

Golfo ChapterVeracruz, Ver.Jorge Alejandro VegaExecutive DirectorSimon Bolivar no. 705.casi esquina con España.Despacho 3Colonia Zaragoza C.P. 91910Veracruz, Ver. MéxicoTel: (229) 937-0598Fax: (229) [email protected]

Valle de México ChapterMéxico, D.F.Anja MiroslawExecutive DirectorAv. Insurgentes Sur 1605Torre Mural, Piso 25, Mod. 3Col. San José InsurgentesBenito Juárez, 03900México, D.F.Tel: (55) 5662-6103Fax: (55) [email protected]

Noreste ChapterMonterrey, N.L.Roberto FuerteExecutive DirectorAv. Fundidora No. 501.Edificio Cintermex P.B. Local 114Col. ObreraMonterrey, N.L. 64010Tel: (81) [email protected]@gmail.com

Michoacan ChapterMorelia, Mich.Nick OrtizPresidenteMelo 166-BMorelia Michoacan C.P. 58000Tel: (443) [email protected]

Gerardo FunesVice-President of [email protected]: 703-752-4751 x 107Fax: 703-642-1088

Joe ChapaVice-President International TradeDevelopment [email protected]: 214-329-4559Fax: 703-642-1088

BINATIONAL HEADQUARTERS /OFICINAS GENERALES5510 Cherokee Ave. Ste. 120Alexandria, VA 22312-2320Mail to: P.O. Box 14414,Washington, D.C. 20044

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lass 1 railroads1 in the U.S. and Mexico provide many new opportunities for business. Railway

systems in North America are constantly implementing new and creative innovations that have been shown to have significant positive benefits; some of these innovations address technology and others, policies and regulations.

North America is of considerable significance because of the great economic impact to the continent as Mexico, United States’ and Canada are NAFTA partners and the three countries rely on land transportation as the main mode of transporting goods. (Eighty-five percent of trade by value consists primarily of freight movements by truck, rail and pipeline2).

Mexico is the U.S.’s third largest trading partner after Canada and China, and the U.S. relies on trade from Mexico for industrial and agricultural products. Based on data from the U.S. Census Bureau Foreign Trade Division, in 2010 total trade between the U.S. and Mexico was around $393 billion.

Mexican Railway System and Cross Border Trade

Mexico’s railway system, a privatized entity, connects major industrial centers with ports and rail centers at the U.S. border.3 It includes seven major railroad companies, with a combined total of 1,160 locomotives.4

Two major Mexico railway companies, Ferromex and Kansas City Southern of Mexico, operate the majority of railways in the country including the Port of Manzanillo, Mazatlan, Guaymas, Lazaro Cardenas, Tampico and Veracruz. Concentrating railroad operations has provided uniformity and efficiency.

The volume of rails that cross the border has led to an increase in traffic and the amount of freight that moves along Mexican lines. The main commodities transported by rail between Mexico and the U.S. are vehicles, computer machinery, plastics, cereals, iron, steel, minerals and fuels. Total trade between the U.S. and Mexico by rail was $48 billion in 2010.

Innovations

Some of the innovations in the Mexican

railway system include state-of-the-art software systems, increased access to new ports, markets and routes, increased fuel efficiency, the use of greener technologies to become more environmentally responsible and the shift to privatization of railways. Below are some of the most recent enhancements:

Carbon Calculator: Estimates the amount of carbon dioxide that can be prevented from entering the environment by using freight rail.

Demurrage Applications: Allow customers to view current, accurate and detailed real-time data online for inbound or outbound shipments, including information about any delays and detentions.

Containerization: Increases in the amount of non-bulk cargo that can be shipped by utilizing stacked containers on transport ships, resulting in approximately 90 percent of that cargo now being moved in this manner.

Mergers of Rail Companies: Mergers and acquisitions as corporate strategies have created an expansive network of top Class 1 rail companies.

As a result of these—and many other—innovations, both private business and public entities will benefit from these changes as rail transport between the U.S. and Mexico increasingly becomes the preferred and more efficient mode of moving goods.

1 According to the Association of American Railroads (AAR), Class I railroads had minimum carrier operating revenues of $378.8 million in 2009.2 CI-online 2011.3 Railway Gazette4 Ministry of Transportation and Communications (SCT) Anuario Estadístico 2009.

Innovations on Mexican Cross-Country Rail Lines

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Fifty-five percent of Ferromex is owned by Grupo Mexico S.A. de C.V., 26 percent by Union Pacific Railway, and 18.5 percent by Grupo Carso S.A. and Grupo Inbursa S.A., BNSF (Burlington Northern Santa Fe Railway) is a trading partner from Ferromex.

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Health Travel Guides Announces Stem Cell Travel Program

Motorola Solutions Progressing on Digital Cities Ranking

ealth Travel Guides offers its Adult Stem Cell Medical Travel Program, the future of medicine now. Featured providers in Mexico, the Bahamas and Malaysia offer Adult Autologous

Stem Cell treatment programs to treat conditions that have traditionally been difficult to manage, such as COPD, congestive heart failure, Multiple Sclerosis, macular degeneration, joint pain, Parkinson’s and Alzheimer’s Disease, and more.

Medical Travel packages include all standard medical and surgical costs, ground transportation from airport, case management by experienced medical case managers, medical records management, and comprehensive travel concierge and post-procedure follow-up. For more information visit www.healthtravelguides.com.

otorola Solutions released a status update on the 2011 Motorola Digital Cities Ranking, a study measuring the digitalization of municipalities of all types and sizes throughout Latin America.

The study was developed by Convergencia Research and first conducted in 2009 with participation of over 150 cities from 15 countries.

During the first stage, which concluded in May, information was gathered through an online questionnaire. Municipalities provided information about their infrastructure, as well as access to, availability and use of services. On the basis of the information gathered through the survey, the 25 cities with the highest scores based on progress toward their projects,

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Mwere selected to participate in the next phase of the study.

During the second stage, those cities were further interviewed and evaluated. They will be measured on special initiatives in digital innovation and projects focused on public safety, health, education, electronic voting, interconnectedness of institutions, security and wireless access, among other measurements.

Results for the 2011 research are expected to be released fourth quarter.

For more information, visit ciudadesdigitales.convergencia.com.

INFORMATION CONTAINED IN THE MEMBERS CORNER IS PROVIDED BY MEMBER COMPANIES WHO ARE SOLELY RESPONSIBLE FOR THE CONTENT.

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Are You in Compliance with Mexico’s Personal Data Protection Requirements?

he “Federal Law of Protection of Personal Data held by Private Parties” (Ley Federal de Protección de Datos Personales en Posesión de los Particulares or ‘LPD’) was published last year, establishing the scope and

principles for the collection and processing of personal data, but the provisions described below only became effective on July 6, 2011, one year after its enactment.

Scope and DefinitionsThe LPD governs every aspect of the use and storage of personal data and sensitive personal data, including the purposes for which companies collect such information, the way they store it, with whom they share it, and when and how they delete the information after it is used.

As with similar data protection laws in other jurisdictions, like the U.S. and European Union data protections acts, the LPD includes definitions of crucial terms including:

• Personal Data - any information related to an identified or identifiable individual (the “data owner”).

• Sensitive Personal Data - any information that could cause discrimination or a serious risk to the data owner, such as information related to race or ethnicity, current or future health situation, genetic information, religious, philosophical and moral beliefs, union affiliation, political opinions, and sexual preference.

• Processing - any collecting, use, disclosure or storage of personal data by any means, as well as access, management, transfer or disposal of personal data.

The provisions of the LPD that had to be implemented as of July 6, 2011 are:

• The designation of a person or creation of a department in charge of personal data responsible for handling all such data, including promoting protection within the company and managing the personal data rights according to the LPD; and

• The requirement to provide a Privacy Notice to each individual about whom personal data is being collected.

Privacy Notice The Privacy Notice is a document in hard, electronic, or any other format that must be provided to the data owner, through print, digital, visual or audio formats, or any other technology, containing at least the following information:

• The identity and domicile of the entity collecting the data;• The purposes for collecting the data;• The options and means for the data owner to limit the use

or disclosure of his/her data;• The means for exercising the rights granted by the LPD

of access, rectification, cancellation and/or objection (beginning on January 6, 2012);

• Whether data will be transferred; and• The process and means by which the entity collecting

the data will notify the data owner of any changes to the Privacy Notice.

In the case of Sensitive Personal Data, the Privacy Notice must expressly state that it is dealing with this type of data.

SanctionsLack of compliance with or violations of the LPD includes fines ranging from US $500 to US $1,600,000 per violation, and/or imprisonment for up to five years. In the case of Sensitive Personal Data or reoccurrence, sanctions are doubled.

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Provided by Marie Alsace Galindo, lawfirm of Miller Canfield, www.millercanfield.com

The statute is very broad and affects all private companies or individuals doing business in Mexico.

Any collecting of personal data must have a lawful justification and is subject to the consent of the data owner, except as otherwise provided by the LPD.

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La Cultura del Medio Ambiente en Mundo Global

n diciembre de 1952 los habitantes de la ciudad de Londres, en Inglaterra, sufrieron uno de los mayores impactos ambientales negativos registrados hasta ese momento. Este impacto

fue provocado por la quema en exceso de combustibles fósiles, que se sumaron a una inversión térmica y que causaron la muerte de por lo menos 10,000 personas y dejaron unas 100,000 personas con problemas respiratorios. Este suceso se puede situar como el punto de partida de la toma de conciencia ambiental a nivel mundial. A partir de entonces en Londres se restringe el uso de combustibles fósiles en la industria y en 1956 se pública en el Reino Unido la “Ley de aire limpio”. En Estados Unidos en 1962 surgen, leyes para mejorar la calidad del aire.

Así a nivel mundial se inicia un movimiento social y cultural que busca disminuir la contaminación ambiental generada y mejorar la calidad de vida. En 1966 se crea la Organización de las Naciones Unidas para el Desarrollo Industrial (ONUDI), que es el organismo especializado encargado de promover y acelerar la industrialización de los países en desarrollo, en el plano mundial, regional, nacional y sectorial mediante principios de sostenibilidad logrando un equilibrio entre la economía competitiva, el empleo productivo y el medio ambiente.

En los años subsecuentes se demostró que los problemas ambientales no solo se pueden resolver desde el ámbito técnico-empresarial, sino que es necesaria la búsqueda de soluciones a través de la concientización de la sociedad y de retomarlas a través de la cultura, valores, y costumbres, por lo que en 1972 después de la cumbre de Estocolmo se crea el Programa de las Naciones Unidas para el Medio Ambiente (PNUMA), que tiene como misión dirigir y alentar la participación del cuidado del medio ambiente inspirado, formado y dando a las naciones y a

los pueblos los medios para mejorar la calidad de vida sin poner en riesgo las futuras generaciones.

Hoy en un mundo globalizado el apoyo de los gobiernos locales y de organizaciones como ONUDI y PNUMA son fundamentales para lograr un desarrollo sustentable y la preservación de los ecosistemas. Ejemplo de esto los tenemos en actividades y proyectos como:

a) Proyecto de soluciones energéticas para el sector hotelero, implementado en 27 países europeos desde 2008 por iniciativa del PNUMA y de la Unión Europea, con el objeto de reducir el uso de energía eléctrica y térmica.

b) Creación de la red global de centros de producción más limpia y eficiencia productiva, instituidos por iniciativa del PNUMA y ONUDI en noviembre de 2010 con el objeto de que establecieran criterios uniformes donde se puedan generar y apoyar proyectos de prevención de la contaminación y eficiencia productiva en países en vías de desarrollo.

c) Proyecto visión 2030, que en México se tiene contemplado con una visión encaminada a tener un desarrollo humano sustentable mediante el cambio cultural y de actitud de la sociedad mexicana. Este propósito fue el referente para la elaboración del Plan Nacional de Desarrollo 2006-20012.

El problema de contaminación ambiental es real, actual y mundial, por eso hay que apostar por la eficiencia productiva, la educación y la cultura. En este esquema la USMCOC promueve, genera y ejecuta proyectos bajo esas directrices. Como ejemplo se tiene su proyecto denominado Centro de Producción más Limpia del Bajío que opera en el estado de Guanajuato, pero cuyos servicios se otorgan a nivel Binacional.

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U.S.-Mexico Cultural and Education Foundation Featured Projects:Cultural Effectiveness Center, “English Proficiency: What Employers Need” Report

he United States-Mexico Cultural and Educational Foundation (USMCEF) was founded in 1996 as a 501(c)(3) nonprofit organization established by U.S.-Mexico Chamber of Commerce to serve as its

educational arm. It is designed to promote cross-cultural knowledge and understanding between the two countries in order to establish closer and stronger ties through its myriad local and national programs and events. With sustained support from the Chamber and its business partners, the Foundation has created internship, literacy and job training programs. It has sponsored conferences and trade missions. Other issues on the Foundation’s agenda address bridging the cultural and language barriers that may inhibit cross-border business partnerships.

Alliance Magazine will feature USMCEF projects on an ongoing basis.

Cultural Effectiveness Center

Cultural System Management is a relatively new field. Only recently have companies recognized the fundamental role that cultural systems play in business performance. With this in mind, the U.S.-Mexico Cultural and Educational Foundation has applied anthropological and management principles of Cultural System evaluation and measurement to establish the Cultural Effectiveness Center.

The Cultural Effectiveness Center (CEC), a non-profit certifying organization provides the world’s first Cultural Effectiveness and Transparency Certification (CET) as a key tool for optimizing organizational performance, international

joint ventures, managing workplace diversity, and ensuring successful M&A processes.

The CET certification process focuses on:• HR management policies and procedures • Knowledge management • Management’s cultural leadership effectiveness • Internal and external communication and interaction

processes

CET Certification provides many advantages, among them:• Standardizes human interaction • Promotes optimal organizational performance • Assures cultural effectiveness and transparency of

corporate cultural systems • In M&As, CET certification integrates merging cultures

minimizing psychological and organizational barriers • CET certification ensures cultural compatibility in joint

ventures and international business projects

English Proficiency: What Employers Need

Another of the Foundation’s accomplishments was its study project to understand what employers need for their Spanish-speaking employees. The purpose of the study was to inform policymakers and others about employer needs in order to guide program development for limited English speaking job seekers and workers. That report, “English Proficiency: What Employers Need” can be found online at http://bit.ly/usmcef.

For more information about the USMCEF, e-mail [email protected] or visit www.usmcef.org.

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GOOD NEIGHBOR AWARDS GALA AND CONFERENCE IN WASHINGTON, D.C.

n May 13, the United States – Mexico Chamber of Commerce hosted its annual Good Neighbor Awards Gala and Conference in Washington, D.C. Approximately 80 individuals participated in the

conference and more than 200 attended the Awards Gala which was featured in several of Mexico’s and United States’ top newspapers. Feedback from attendees was been very positive.

Conference

The conference was held at the Newseum, a beautiful 250,000-square-foot museum with exhibits that detail the history and current status of the delivery of national and international news. The building is located a mere few blocks from the Capitol Building. The ABC Sunday morning program, “This Week” is broadcast from the Newseum. One of the most notable exhibits is a wall displaying 80 of the current day’s front pages—one from each state and other countries around the world. (www.newseum.org)

Al Zapanta, President and CEO of the Chamber, opened the conference with brief remarks on the importance of the economic recovery of both countries and the prolonged stability that will hopefully be maintained for many years to come.

The first speaker was Dr. Roberto Newell of the Instituto Mexicano para la Competitividad, who gave a general

Tommy Gozalez, Irving City Manager; Luis E. Ramirez Thomas, MSFS, President, Ramirez Advisors Inter-National, LLC and Martin Rojas, Vice President International Operations, American Trucking Associations.

Thomas S. Winkowski, Assistant Commissioner, Customs and Border Protection, Office of Field Operations.

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overview of the Mexican economy in comparison to the other large developing economies of Brazil, Russia, India and China. Newell opined that the Mexican economy is in overall good shape compared to the “BRIC” countries; however, several reforms need to be put in place by the government in order to facilitate and assist this growth.

Transportation and infrastructure

Following Newell’s remarks was a panel focused on transportation, infrastructure, logistics, and security in North America.

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The first to present was Thomas S. Winkowski, Assistant Commissioner of the Customs and Border Protection (CBP) Office of Field Operations,

Winkowski touched on many issues ranging from what CBP is doing to curb the flow of drugs into the United States and weapons from the U.S. into Mexico, to how the two countries are working together to expedite and facilitate trade across the border.

Also speaking on the issue were Martin Rojas of the American Trucking Association, who gave an update on the trucking dispute between the United States and Mexico, and Tommy Gonzalez, City Manager of the City of Irving, who spoke about current infrastructure projects that his city was undertaking (see “Border Region Infrastructure” on page 36).

Growth and sustainability

The second panel highlighted the opportunities for growth and sustainability in agriculture, energy, environment, and water. The initial speaker was Geronimo Gutierrez, Managing Director of the North American Development Bank. The bank has a long history of assisting in the development of the border region and described some of the current projects along the border the bank is helping to fund.

Also on the panel were:

• Commissioner Ed Drusina of the International Border and Water Commission discussed water sharing agreements between the United States and Mexico.

• Erika Benson, Special Advisor of the Americas from the Office of Policy and International Affairs at the U.S. Department of Energy, addressed cross-border electricity issues and the binational energy taskforce that is now underway.

• Dr. Paul Maxwell, Executive Director and CEO of the Binational Sustainability Laboratory, provided an overview of his organization and the current research on various border sustainability projects.

Closing luncheon

The conference ended with a keynote by the Director General of Mexico’s Tourism Board in the United States, Mr. Rodolfo

Lopez-Negrete. Lopez-Negrete highlighted investment opportunities and the future growth of the Mexican tourism industry.

He boldly stated that in the next ten years, Mexico’s goal was to be one of the top five tourist destinations in the world. The action plan to accomplish this goal is to brand Mexico as more than just a beach destination. To accomplish this the Secretary of Tourism is promoting the country as a destination bursting with rich history, culture, arts, and one of the most diverse culinary selections in the world.

Good Neighbor Award Gala

To close out the day, the Chamber held its black tie Good Neighbor Award Gala at the Organization of American States’ main building.

The evening began with a reception in the majestic foyer followed by dinner and presentation of awards in the main ballroom. Zapanta presented the Good Neighbor Awards to a select group of individuals and organizations which have made exceptional contributions to both countries’ recoveries from the recent financial crisis.

Awardees for excellence in the public sector:

• Dr. Ben Bernanke, Chairman of the Board of Governors of the Federal Reserve System

• Dr. Agustín Carstens, Governor of the Banco de Mexico• Gov. Enrique Peña Nieto, Governor of the State of Mexico

Geronimo Gutierrez, Managing Director, North American Development Bank.

Paul C. Maxwell, Executive Director & CEO, Binational Sustainability Lab.

Erika Benson, Senior Advisor for the Americas, Office of American Affairs, Policy and International Affairs, U.S. Department of Energy.

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UNITED STATES-MEXICO CHAMBER OF COMMERCECÁMARA DE COMERCIO MÉXICO-ESTADOS UNIDOS

“U.S.- Mexico Economic Recovery and Stability 2011& Good Neighbor Awards” Sponsors

USMCOC Thanks its Sponsors for Supporting the:

GALLÁSTEGUI & LOZANO

Awardees for excellence in the public sector:

• Mr. Eduardo Serrano, Ford Mexico• Mr. Juan Rebolledo, representing Grupo México

Finally, the last award of the day, the award for Congressional Leadership was given to the Honorable Solomon Ortiz from Texas, an 18-year member of Congress.

Next...

We are looking forward to our next conference and gala, which will be held in Mexico City at the end of this year.

USMCOC Chairman Mike Carricarte and USMCOC President, Al Zapanta presenting the Honorable Ben S. Bernanke, with the Good Neighbor Award for the public sector.

Remarks by Hon. Agustin Carstens, Governor of the Bank of Mexico.

Enrique Peña Nieto, Governor of the State of Mexico, accepting his Good Neighbor Award. Mike Carricarte and USMCOC President, Al Zapanta.

Remarks by award recipient, Eduardo Serrano, President and CEO of Ford Mexico.

Juan Rebolledo, Vice President International Affairs for Grupo Mexico, receiving the Good Neighbor Award for the private sector from, Mike Carricarte and Al Zapanta.

Rep. Solomon Ortiz.

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BECOME A PART OF PLAYA ESPIRITU,FONATUR’S NEWEST INTEGRALLY-PLANNED AND SUSTAINABLE RESORT IN SINALOA

uring its growth as a world pioneer in the development of model tourist cities, FONATUR has distinguished itself for its focus on integrating environmental and economic sustainability into

its large projects, establishing standards for urbanization and tourist facilities, as well as supplying the infrastructure and basic services for residents and tourists at its Integrally Planned Resorts (IPR).

The first IPRs were in Cancun and Ixtapa in 1974, followed by Los Cabos, Loreto and Huatulco. And now, a new Integrally Planned and Sustainable Resort (IPSR) is underway in Sinaloa.

An interview with Adriana Perez Quesnel: FONATUR´s CEO discusses the world’s first IPSR

FONATUR´s goal is to promote tourism in an environment of sustainable development, in an orderly manner, in perfect harmony with the ecology and urban development of the area. These efforts have positioned Mexico among the 10 most important tourist destinations in the world. Since its inception, FONATUR has invested more than $2.9 billion in Mexico´s tourist, economic, and social growth.

During an interview with Alliance Magazine, FONATUR´s CEO, Adriana Perez Quesnel, tells us about the first IPSR in the world.

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ADRIANA PEREZ QUESNELDirector General of FONATUR

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1 Agenda 21 is a comprehensive plan of action to be taken globally, nationally and locally by organizations of the United Nations System, governments, and major groups in every area in which human impacts on the environment. Full details and text are available online at www.un.org/esa/dsd/agenda21.2 International Organization for Standardization (ISO) is the world’s largest developer and publisher of International Standards. ISO is a network of the national standards institutes of 162 countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system. Visit the ISO Web site at www.iso.org/iso/home.htm.

AM: What response have you had regarding Playa Espiritu in Sinaloa?

APQ: We have presented the project at several conferences. What people have liked the most is the purchase option by means of a joint venture or partnership. FONATUR´s traditional selling model consists of selling the land with full infrastructure services, apart from the credit facilities.

For this particular project, we have moved one step ahead by creating partnership models between private investors and FONATUR. We understand it is an IPSR that has no developments in its surrounding area—just like Cancun was 40 years ago. We are telling investors that they can become partners of the Mexican Federal Government through FONATUR, therefore creating a trust where FONATUR provides the land, the investor provides the money for the hotel´s development, and in five or six years, once the investor recovers the money, FONATUR leaves the trust. The idea is to set off three or four hotels simultaneously with this same business plan.

AM: FONATUR wants to build its first hotel in Playa Espiritu, what can you tell us about this?

APQ: That´s right, this will be the first hotel to be built in the Integrally-Planned and Sustainable Resort. In this case, what we are looking for is the hotel management company; we are actually in a very advanced stage with the executive project.

On the other hand, the piece of land we chose for this hotel is in the center of the development and the idea is to build it with full respect for the great number of palm trees in the

area, so that this hotel becomes an example for the other hotel developers, making them realize that great hotels can be built in the middle of such vegetation.

AM: Which are the first lots that will be for sale in the IPSR in Playa Espiritu?

APQ: We need to create the key projects to foster further investment and critical mass which is why the first lots that will be sold are hotel and commercial lots. In the second stage, single-family homes will be for sale.

AM: Apart from Sinaloa, Huatulco can also be considered as a sustainable development, and we just found out that it is the first community worldwide to receive the Gold EarthCheck Certificate. Please tell us about this.

APQ: Exactly. The IPR Huatulco is the first development in the world to receive this certificate, which is based on the [United Nations’] Agenda 211 regulations and the quality standards of the ISO’s2 stringent evaluation process that considers the reduction of waste production, efficient energy use, clean and wastewater management, following environmental programs and the involvement of the population in preservation activities.

AM: And finally, why should anyone do business with FONATUR?

APQ: Any dream or project an investor or developer may have will find in FONATUR his best business partner because of the business profitability, security and the guarantee of FONATUR´s continued participation in the project.

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PLAYA ESPIRITUThe Integrally-Planned and Sustainable Resort (IPSR), Playa Espiritu, is FONATUR’s most recent tourist development. Located on the Pacific Coast, it is intended to be a high-end destination comprised of almost six thousand acres divided into 10 phases, integrating lot divisions with mixed land uses and a capacity for 15,882 residential households and 11,614 hotel rooms.

The development will have golf courses, marinas, docks, breakwater, transport infrastructure and urban services such as roads, bridges, a potable water supply, sanitary sewer systems, wastewater treatment plants, irrigation network, electricity, drainage system and its own telecommunications network.

Goal: Environmental improvement and sustainability

The plans for Playa Espiritu aim to turn a previously misused area around by incorporating the natural resources, limiting any negative impact on adjacent localities and ensuring the sustainability and regeneration of the environment in land that have been impacted. The goal is to recycle, regenerate and make the most out of the natural surroundings without any further damage.

Water reuse

A primary goal in the overall project is to make sure that water that is obtained onsite remains on the site, accomplishing both a sustainable and regenerating process, avoiding flows and natural disasters.

The water management system creates a sustainable supply by focusing on the efficient use of water. All property owners will be required to treat used water for reuse at least once. The IPSR will treat water onsite to create its own source of potable water which not only has inherent benefits for water reuse but reduces the need for bottled water, thus limiting the environment effects caused by plastic water bottles. Treated wastewater will be used for irrigation.

Energy supply

The energy supply system planned for the IPSR is also unique. Fossil fuel energy will be considerably reduced through the use of renewable energy, particularly solar.

Other energy efficiencies to be implemented will include waste management and use of certified low-energy appliances. The efficient waste management system will be implemented in the early execution stages. Waste shall be separated in order to be recycled, with an eye toward any possibilities for energy generation and organic waste handling, apart from the fact of encouraging the reduction of waste production.

Lifestyle

Playa Espiritu will be structured to encourage a healthy, walkable, eco-friendly lifestyle. It will encourage residents’

physical activity and wellbeing due to the concept of compact cities.

The mixture of land uses will allow people to access shopping, entertainment and recreation without having to travel long distances by car. They can move around through a combination of public transportation, cycling and walking. The design includes sidewalks, roads and other paths that connect green areas, plazas, outdoor gathering spaces and parking lots discreetly hidden behind buildings.

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SMALL ISLANDS formed by the accumulation of soil, silt and vegetarion that are found in Sinaloa

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Architecture and energy efficiency

The architectural design will be unique to each building. The efficient energy use will depend on the orientation, volume, shadows, ventilation, heights, views, materials, wind and other bioclimatic elements that give more comfort and improve the inhabitants´ quality of life.

Playa Espiritu will be an excellent IPSR that invites residents and visitors to become a part of

it, enjoy it and live it. It is, and will always be, an innovative

and forward-looking sustainable development for everyone.

1 1EarthCheck is the world’s first tourism specific benchmarking and certification program. Source: www.earthcheck.org.

The new IPSR will cover an area of 5,883 acres

HUATULCO: A FONATUR SUCCESS STORY

Huatulco is an example of a sustainable city developed by FONATUR. This IPR has truly earned the distinction “sustainable tourist resort,” earning its fifth consecutive Earthcheck Certification.1 Huatulco is the first—and only—certified community on the Americas, and third worldwide along with Bali and New Zealand’s Kaikoura to carry this distinction.

Thanks to the restructuring and rebranding strategy designed by FONATUR in 2008, Huatulco´s image has been elevated and it is now positioned as one of the best known tourist developments in the world. Tourist attractions have been diversified and improved; several projects were initiated including the eco-archaeological park in Copalita, the Tangolunda Golf Course and Marina Chahué. As a result of these improvements and additions, as well as nightlife activities, the area now successfully promotes conventions and group travel.

Get the free mobile app at:http://gettag.mobi

Scan & watch a Project`s video

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PLAYA ESPIRITU:

Accessibility • Mazatlán´s International Airport

Distance: 53 milesTravel time: 1 hour

• Teacapán´s AirportDistance: 16 milesTravel time: 26 minutes

• Highway Mazatlán-Tepic

Local attractions• Architecture: Temples, culture centers, municipal buildings and boardwalk•Traditions: Local festivities• Archaeology: Las Conchas Pyramid• Natural: Beaches, rivers, marshes, biodiversity and migratory birds

Physical features• Total surface: 5,883.5 acres• Sellable surface: 3,353.8 acres• Developable surface: 4,806 acres• Beachfront: 7.5 miles• Beach width: Approx. 109 yards • 180° Panoramic ocean views • Preservation area: 1,094 acres

Building Capacity• Hotel rooms: 11,614• Residential households: 15,882• Land use:

- Single family dwelling - low, medium and high density- Commercial- Hotel

Nautical infrastructure:• Marina• Recreational island• Water canals• Dynamic boardwalk• Water ski

Cultural facilities• Cultural center• Universities• Libraries • Retirement communities

Sports and commercial facilities• Golf courses • Beach clubs • Theme park • Sports area • Recreational boardwalks • Shopping centers

FonaturMX @FonaturMX

Contact: Alexis Ralph Perez-GayPh.: +52 (55) 5090-4249E-mail: [email protected] 1-877-847-8183

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NORTHEAST CHAPTER 2011, EVENTS AND ACTIVITIES

hrough the organization of forums, seminars and conferences, the U.S.-Mexico Chamber of Commerce Northeast Chapter provides its members with networking and informational tools for strengthening

and developing business connections.

For more information on events and sponsorship opportunities please contact us at [email protected] or (212) 471 4702.

Investment and Business Opportunities in the Mexican Tourism Industry (May 5)

Northeast Chapter. New York, NY

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From left to right: Alejandro Ramos, Executive Director, USMCOCNE; Alfonso Sumano, Director for the Americas, Mexico Tourism Board; Adriana Perez Quesnel, Director General, FONATUR; Dario Flota, Director General, Riviera Maya Promotion & Development Trust; Ismael Naveja, Deputy Consul General of Mexico in New York

From left to right: Ian A. and Henry G. Burnett, Crowell & Moring LLP; Martin Moen, Embassy of Canada to the United States; Karen N. Antebi, Embassy of Mexico to the United States; Kent Shigetomi, Office of the United States Trade Representative; Alejandro Ramos, USMCOCNE Director.

The objective of the conference was to share information about business and investment opportunities in Mexico, as well as strategic alliances between Mexican, U.S. and international companies in the tourism industry.

Keynote speaker, Adriana Perez Quesnel, FONATUR’s CEO, showcased FONATUR’s integrally planned developments at world-class tourist destinations. Alfonso Sumano, Mexico Tourism Board, provided data on the nation’s attractiveness for tourists. Walfre Ibarra Escobar, Concanaco Servytur, presented Mexico as a premier destination for business and direct investment in the tourism industry.

Juan Arroyuelo, Fidelity National Financial; Rick Maggio, Jones Day; and Carolina Silva, Homex Tourism; drew a roadmap for investment developments to capture the ever-expanding market of foreign retirees in Mexico. Dario Flota from Riviera Maya’s Promotion & Development Trust, concluded by detailing with the region’s success story.

The consensus was that Mexico’s tourism industry represents one of the fastest growing sectors in Mexico.

Cinco de Mayo Luncheon (May 5)

The celebration was part of the 90th Anniversary of the

Chamber’s Northeast Chapter in New York. The lunch was attended by more than 90 distinguished members and friends of the Chamber.

NAFTA: The Agenda for Sustainable Growth and Competitiveness (May 19)

Government officials and private sector practitioners from the three NAFTA countries—U.S. Mexico and Canada—evaluated the achievements and challenges of the treaty after its seventeenth year in effect. The conference opened with the remarks by Danièle Ayotte, Consulate General of Canada.

The first panel included Martin Moen, Counselor and Head of the Trade and Economic Policy Section, Embassy of Canada to the United States; Karen N. Antebi, Counselor for Economic Affairs, Trade and NAFTA Office, Embassy of Mexico to the United States; and Kent Shigetomi, Director for Mexico, NAFTA and the Caribbean, Office of the United States Trade Representative. They shared their experiences with NAFTA while working as representatives of their respective governments.

The second panel included George Haynal, Bombardier Inc.; Ian A. Laird, Crowell & Moring LLP; and Guillermo Sánchez Chao, Chevez, Ruiz, Zamarripa. The team discussed the treaty’s influence and the benefits it has brought to companies doing business within North America. They also discussed potential scenarios for the future of this vital trade instrument.

FONATUR: Private Business Roundtable (June 7)

FONATUR representatives discussed investment projects and potential business opportunities in new resort areas on Mexico’s west coast and other Integrally Planned Developments (IPDs).

Adriana Perez Quesnel, FONATUR’s CEO, talked about

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From left to right: Michael Grohman, Managing Partner, Duane Morris LLP; Eduardo Ramos-Gomez, President U.S.-Mexico Chamber of Commerce NE and Partner, Duane Morris LLP; Carlos M. SADA, Consul General of Mexico in New York.

From Left to right: Alejandro Gonzalez-Lazzeri, Counsel, Skadden, Arps, Slate, Meagher & Floom LLP; Alejandro Ramos, Executive Director, U.S.-Mexico Chamber of Commerce Northeast Chapter; Paola Lozano, Partner at Skadden, Arps, Slate, Meagher & Foom LLP; Dr. Manuel Sanchez, Vice Governor of Mexico’s Central Bank (Banco de Mexico); Carlos M. Sada, Consul General of Mexico in New York.

new tourism projects in Teacapan and Costa Capomo and presented an analysis of other growing projects in Loreto, Los Cabos, Litibu, Cozumel, Cancun, Ixtapa and Huatulco.

Business Transactions between Mexico and the U.S.: Compliance with Anti-Corruption and Anti-Money Laundering Regulations (July 14)

The panelists were: Kevin Abikoff, Hughes Hubbard & Reed; Jose Luis Stein, Mexican Financial Intelligence Unit in Washington DC; and, Frederick E. Curry III, Deloitte Financial Advisory Services LLP.

The origins and evolution of anti-corruption and anti-money laundering (AML) regulations were detailed through the point when they were combined for prosecutions. AML in Mexico differs from the U.S.’s and new transaction regulations and changes are being discussed in Congress. Presenters stressed the basic “principles of a sound AML and compliance program” and their tendency to be businesses’ most common weaknesses.

Reception for Carlos M. Sada, Consul General of Mexico in New York (June 27)

Eduardo Ramos-Gomez, the president of the USMCOC Northeast Chapter, and Michael Grohman, head of Duane Morris’ New York office, welcomed Consul General of Mexico Carlos M. Sada to New York.

Consul General Sada spoke about the importance of continuing a close U.S.-Mexican relationship, and promoting and protecting this relationship.

Mexico’s Economic Outlook presented by Manuel Sánchez, Vice Governor of Mexico’s Central Bank (Banco de México) (July 14)

During this event Vice-Governor of Mexico’s Central Bank (Banco de México), Dr. Manuel Sánchez, shared his observations on the conditions and outlook for the Mexican economy focusing on three main topics: growth prospects, capital inflows and their effects, and the challenges to the consolidation of price stability in Mexico.

For more details on this event, please refer to the article “Three Issues for Mexico’s Economic Outlook” in this issue of Alliance magazine.

Mining in Mexico: Success stories and investment opportunities (July 21)

The objective of this conference was to analyze the evolution of Mexico’s mining industry and its business opportunities for foreign direct and portfolio investments.

Keynote speaker, Lorenza Martinez, Mexico’s Undersecretary of Economy, led the presentations, followed by Ing. Sergio Almazán, CAMIMEX (Mexican Chamber of the Mining Industry); Steven L. Mayo, Export-Import Bank of the United States, Carlos Montemayor, PwC, and Carolina Walther-Meade, Milbank, Tweed, Hadley & McCloy LLP.

The significant growth of investment in mining worldwide, Mexico’s competitiveness on this world stage, and mining’s competitiveness within the country were widely discussed. Future projections, financing opportunities and methods, and challenges for both exploration and exploitation were also addressed.

Panelists noted Mexico’s rising status domestically and internationally in the mining sector and the increasingly attractive investment opportunities that it offers. It already is “the first in mining exploration investment in Latin America, and fourth in the world,” Dr. Martinez said, and with less than a fifth of the nation’s territory considered to be economically workable for mining granted so far, the further growth potential and opportunities are clear.

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For the past two years, Major General Albert Zapanta, founder and president of USMCOC, received special recognition by the Masonic Lodge during the ceremony.

History

In 2006, Chief Greywolf, Worshipful Master of the Lodge and the principal chief of the Texas Cherokee Nation contacted the Chapter about partnering to bring the Tribute to Dallas. By the next year, the objective was met with the coordination and cooperation of area police and fire, sheriff and Patriot Guard.

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n May 26, the Wednesday prior to Memorial Day, the U.S.-Mexico Chamber of Commerce (USMCOC) Southwest Chapter cosponsored events to honor military veterans from all wars as

well as the responders of 9/11. The Chapter has participated in this event since 2007.

Also sponsoring were Tannehill Masonic Lodge 52 and American Veterans Traveling Tribute.

After a ceremony at Dallas City Hall, a motorcade including the Patriot Guard, a motorcycle group consisting primarily of Vietnam veterans, proceeded to Fair Park where a 383-foot replica of the Vietnam Wall was on display.

American Veterans Traveling Tribute, founded by Colonel Don Allen and Steve Goti, includes the names of veterans who lost their lives during World War II and the wars in Vietnam, Korea, Afghanistan and Iraq. Also remembered are 9/11 responders.

The Chapter coordinates with members of the Masonic Lodge, Patriot Guard, Dallas Police Department and Dallas County Sherriff’s office to ensure safe transport of the wall.

Josie Orosco, Executive Director for the Southwest Chapter of the United States-Mexico Chamber of Commerce with the honor guard of the Dallas Sheriffs Department awaiting the arrival of the Vietnam Wall which was escorted into the city by Dallas Police Department Motorcyle Unit and the Patriot Guard.

U.S. Mexico Chamber of Commerce formal receiving line at Dallas City Hall for the Vietnam Traveling Wall sponsored by Tannenhill Masonic Lodge #52 and the American Veterans Traveling Tribute. Over 350 patriotic invited guests including the Dallas Police Department Motorcycle Unit, Dallas Sheriffs Department and Patriot Guard were at the event.

SOUTHWEST CHAPTER CO-SPONSORS TRIBUTE TO AMERICAN VETERANS

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Southwest Chapter. Dallas, TX

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Formal tribute by Colonel Hal Bird, Air Force representative with members of the Dallas Police Department and Tannenhill Masonic Lodge #52.

Chief Greywolf, Principal Chief of the Texas Cherokee Nation.

U.S. Congressman Pete Sessions (R-TX), center, was in attendance to honor the veterans.

Dallas City Councilman Steve Salazar, at the podium, with Chief Bear, standing, welcome the guests.

Major General Al Zapanta, president and CEO of the U.S.-Mexico Chamber of Commerce, being greeted by Josie Orosco, Executive Director of the Southwest Chapter, and Arnulfo Perez, Worshipful Master of Tannenhill Masonic Lodge #52 at the American Veterans Traveling Tribute.

Elmer Murphey, left, and Chief Bear, right, present a special service award to Past Grand Master, Major General Al Zapanta.

The team from the Tannehill Masonic Lodge 52 that initiated the project includes

• Elmer Murphey, partner with Strasburger & Price, LLP and Past Grand Master of the Grand Lodge of Texas.

• Chief Bear, Past Worshipful Master of the Tannehill Masonic Lodge 52 and Elder Chief of the Texas Cherokee Nation.

• Gary Hill, Past Master and Secretary for Tannehill Masonic Lodge 52 and chair for the Memorial Masonic Program for Veterans.

• Daniel Dobson, Warden of Tannehill Masonic Lodge 52, cochair for the Memorial Masonic Program for Veterans.

For photographs of the day’s events, visit the Tannehill Masonic Lodge 52 Web site at tannehill52.org.

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USMCOC CELEBRATES XIII ANNIVERSARY WITH MEXICAN CRUISE

This year the Chamber featured the “International Kick- Off of the Mayan World 2012”

Honoring the Board of Trustees of the Mexico’s Anthropology Museum and the State of Chiapas

he United States-Mexico Chamber of Commerce invited over 200 of South Florida’s most distinguished and prominent business and civic leaders aboard the world’s largest cruise ship, Oasis of the Seas, to

celebrate the Inter-American Chapter’s 13th Anniversary.

“This year our organization has proposed strengthening the commercial, tourism and cultural relations that exist between southeast United States and southeast Mexico. Our guest of honor at this event was the beautiful state of Chiapas,” stated Elba Hentschel, Executive Director of the Inter-American Chapter.

The afternoon started off with a cocktail reception in the main ballroom where guests were greeted with traditional drinks from Chiapas, “the royal entrance to the Mayan world.” It was followed with an original and spectacular ballet, “Palenque Rojo,” in celebration to the international kick-off of Mayan World 2012.

Following an exquisite lunch in the main dining room, Marcos Fastlicht, president of the Board of Directors of Mexico’s National Museum of Anthropology, was recognized for his achievements and arduous work in modernizing the museum’s services and making it one of the most important museums internationally due to its richness in archeological treasures.

Secretary of Tourism of the State of Quintana Roo, Juan Carlos Gonzalez Hernández, Yolanda de la Cruz and Eduardo González Cid President of de Discover Mexico

Marcos Fastlicht receiving the award from Al Zapanta, Mike Ronan, and Elba Hentschel. Also pictured are Mr. Flastlicht’s grandchildren: Emilio Daniel and Hanna Sophia Azcárraga Fastlicht.

Upper row: Elba Hentschel, Sergio Martínez-Chavarría and Mike Ronan. Front: Mike Carricarte, Miguel Gutiérrez-Tinoco, Hon. Jorge Samoaya, Blanca Ruth Esponda and Albert Zapanta.Toño Mauri, Karla Alemán and Sergio

Martínez-Chavarría.

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An award was also bestowed on the Hon. Juan Sabines Guerrero, governor of the State of Chiapas, for his outstanding efforts in positioning the state as one of excellence in different sectors such as the economy, industry and tourism to the state. Sen. Blanca Ruth Esponda Espinosa represented the governor in accepting the award.

Both awards were granted in the company of the top representatives of the USMCOC: Michael Carricarte, binational chairman; General Albert Zapanta, binational president; Consul General of Mexico in Miami and Honorary President of the Chapter, Ambassador Miguel Gutierrez-Tinoco; Michael Ronan, president of the Inter-American Chapter and vice president of Royal Caribbean.

Dozens of distinguished guests traveled from Mexico to participate in this memorable event. Among them were Sergio Martinez-Chavarría, president of Mayan Calendar 2012; Juan Carlos Gonzalez, Secretary of Tourism of Quintana Roo; Tirso Agustin Rodriguez De la Gala, Secretary of Finance of the State of Campeche; Karla Aleman and her husband Toño Mauri.

Also present were members of the board of directors of the Inter-American Chapter including Ricardo Aizenman, David Waxman, Robert Allen, Jorge Carstens and David Rosenberg.

The executives were also honored with the attendance of the Hon. U.S. Congressman Mario Díaz-Balart, and the Hon. Jorge Samayoa, Minister of Tourism of the Republic of Guatemala.

Inter-American. Miami, FL

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entourage were JIANG Wei, Beijing Boto Logistics Equipment Co., Ltd.; FAN Zhiyong, C-F Industries LLC; XIA Pibo, Chongqing Nuoxin Packaging Product Co.; and LI Yi, Chongqing Nuoxin Packaging Product Co., Ltd.

• The USMCOC had the opportunity to welcome our friends from Continental/United Airlines and promote their April 13, 2011 inaugural flight from Los Angeles to Guadalajara. There was an excellent turnout of business people interested in traveling to Guadalajara and other cities to learn about the wonders that Mexico has to offer.

• The Fourth Annual Celebration of the International Trade Community in Los Angeles at UCLA on May 20, brought business people from the countries of Brazil, Ecuador, Peru, Argentina, Guatemala and Chile, and from several international companies including Hong Kong Trade; Aeromexico Airlines;, UCLA Center for Mexican Studies; L.A. Cetto, South Africa; Los Angeles World Airports; Center for International Trade Development; Promexico; and Vigatello. The event offered participants a great opportunity to promote their products and services, as well as learn about export assistance and promotion to the world.

• The Chamber hosts weekly meetings with different groups, for example, it recently held a motivational meeting with students from the Tecnologico de Monterrey.

• Los Angeles was honored to host a reception for David Figueroa, the new Consul General of Mexico in Los Angeles at the posh Luxe Hotel on Rodeo Drive. The response was overwhelming resulting in more than 200 guests.

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THE CALIFORNIA REGIONAL CHAPTER HAS BEEN VERY ACTIVE WITH DIFFERENT ACTIVITIES AND PROMOTING THEIR MEMBERS AND SPECIAL PROJECTS

ere is a partial list of the Chapter’s activities:

• Representatives of Bryan Gonzalez Vargas & Gonzalez Baz, S.C. and Mauricio Monroy

Contadores presented “Case Studies of the IMMEX Decree Reform: what has not been said.” The event was sponsored by Bryan Gonzalez and held at the Merrill Lynch building. Attendees were informed of the status and updates to the IMMEX Decree.

• The Chapter developed a series of seminars on several topics: helping organizations retain employees; maintaining a healthy environment within the organization; and promoting Mexico, as well as a conference entitled, “How to Communicate to the Media about Mexico as the Best Choice for Business Growth, Leisure Destinations, Breaking Stereotypes and Limiting Beliefs.” The meeting was very successful and attended by over 30 companies that promote tourism between the U.S. and Mexico.

• As participants in Friends of the USMCOC, a taskforce designed to promote business with China, the chapter presented a seminar with Renee Rodriguez, a consultant between China and Mexico from Latin Desk CWCC, Hong Kong, “Success Stories of Mexican Companies Entering China.”

• The chapter was privileged to host a trade delegation from China on March 30. It was a great opportunity to meet Chinese companies and make business contacts. The delegation included representatives from great companies in Beijing. Leading the group was Mr. Yair Crane from Next Global Stage, LLC. Others in the

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Marlen Marroquin and Elfe Cardenas. Mauricio Monroy, Marlen Marroquin and David Figueroa, Consul-General of Mexico.

Marlen Marroquin and Elfe Cardenas.

California Regional Chapter. Los Angeles

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honored Secretary of Economy of Mexico, Bruno Ferrari, and Motorola Solutions at the annual Double Eagle Awards event on July 28. About 250 people attended the Chamber’s major fundraiser. The Double Eagle is awarded to companies and individuals who have worked toward enhancing trade, investment and good relations between the two countries.

In 2010 Motorola Solutions celebrated the fiftieth anniversary of its presence in Mexico, a milestone recognized by the bestowing of the award.

Secretary Ferrari has been tireless in his efforts toward maintaining and promoting good trade relations, and has been a longtime supporter of the Chamber and this year the Chapter was proud to have honored him.

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UPDATES OF MID-AMERICA CHAPTER: KEEPING MEMBERS INFORMED AND CURRENT ON ISSUES RELEVANT TO THEIR MISSION

MEMBERSHIP PROMOTION BREAKFAST SERIES

Update on Mexico’s economic outlook, export tax exposures and the automobile industry

he first update this year brought nearly 70 attendees to learn about Mexico’s economy, new tax issues, and the automotive industry. José Luis Paz from the Ministry of Economy of Mexico gave a briefing on the

current state of Mexico’s trade and investment and Mexico’s economic and business outlook.

Tax specialist John McLees explained the new tax exposures for export companies in Mexico, specially manufacturing companies.

Finally, analysts on the automotive industry gave updates on the industry changes, outlook and the linkages between the U.S. and Mexico.

Cinco de Mayo party

About forty-five guests celebrated Cinco de Mayo with the Chamber at Mercadito restaurant with an evening of food, fun and networking.

Double Eagle Awards

The U.S.-Mexico Chamber of Commerce Mid-America Chapter

he USMCOC Northwest Chapter hosted a promotional breakfast in Seattle to introduce potential members to the benefits of membership of the Chamber. Among the benefits described to

attendees were promotion of the trade relationship between the Mexico and U.S.—in particular the state of Washington—and support for doing business with Mexico.

The first breakfast was held on June 7 of this year and was chaired by Jorge Madrazo, president of the Northwest Chapter. Madrazo introduced the Chamber’s mission, the Northwest Chapter, and membership benefits. This initial breakfast was attended by members of the Latino community who represented business, financial and educational sectors

Pacific Northwest Chapter. Seattle, WA

Richard Hilgert, automotive Industry Analyst, Morningstar; Thomas Klier, Senior Economist, Federal Reserve Bank of Chicago; John Mc.Lees, Partner and tax expert Baker & McKenzie.

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Tof this region. Guests were allowed to introduce themselves and their companies.

After the preliminary introductions, there was a roundtable discussion on the significance of the presence of the Latino community in the Pacific Northwest and the Washington State-Mexico trade relationship.

The office of the UNAM in the Pacific Northwest and Sea Mar sponsored the event.

The second breakfast was held June 28 and the third on July 12 was hosted by the Consul of Mexico in Seattle, Ambassador Alejandro Garcia Moreno Elizondo.

Mid-America Chapter. Chicago, IL

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OPROMOCIÓN CASA JALISCO EN LOS ESTADOS UNIDOS

l pasado 12 de abril el Capítulo Puebla de la U.S. Mexico Chamber of Commerce en colaboración con la

Universidad Popular Autónoma del Estado de Puebla llevaron a cabo la Mesa de Análisis “La libre circulación del autotransporte mexicano en los Estados Unidos”, teniendo como analistas invitados Dr. Werner G.C. Voigt quien es Doctor en Derecho con Estudios en Estrategia Internacional, el Ing. Erik Thomassiny Director General de la empresa Süd-Chemie de México y el Lic. Héctor Arroyo Carrasco de Grupo logístico ALMEX.

El objetivo de este evento fue el

l Capítulo Pacifico en coordinación con el Instituto de Fomento al Comercio Exterior del Estado de Jalisco “Jaltrade”

presentó el pasado 8 de junio ante un nutrido número de empresarios de la ciudad de Guadalajara, las realidades del proyecto de Casa Jalisco en los Estados Unidos.

Primeramente el presidente del Capítulo Pacifico, Miguel Ángel Lares se dirigió a los asistentes con unas palabras de bienvenida. La conferencia continuó con una breve presentación de la U.S. Mexico Chamber of Commerce por parte de Francisco Plancarte y por Enrique Pérez Bouquet, respectivamente Secretario y Director del Capítulo, con la finalidad de que el público asistente

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brindar a los miembros e invitados un análisis completo desde la perspectiva académica y empresarial del conflicto que este tema ha generado y que ha derivado en sanciones de parte de nuestro país a los Estados Unidos al no permitir la libre circulación del autotransporte mexicano, y en la implementación de requerimientos que han sido calificados como absurdos por los transportistas mexicanos.

Los panelistas coincidieron en que es necesario el cabildeo para que el capítulo 12 del TLCAN sea implementado y permitan que los transportistas mexicanos circulen libremente por los Estados Unidos.

respalden a los jaliscienses radicados en los Estados Unidos apoyando la integración y trabajo conjunto de clubes y federaciones, de la comunidad jaliscienses organizada.

De izquierda a derecha: Lic. Héctor Arroyo, Ing. Erik Thomassiny, Dr. Werner G.C. Voigt, y el Lic. Fernando Treviño Núñez, presidente del Capítulo Puebla.

Enrique Pérez Bouquet, Director del Capítulo; Karina Ley, Directora de Jaltrade; Miguel Ángel Lares, Presidente del Capítulo; Francisco Plancarte, Secretario del Capítulo.

SE CELEBRA MESA DE ANÁLISIS “LA LIBRE CIRCULACIÓN DEL AUTOTRANSPORTE MEXICANO EN LOS ESTADOS UNIDOS”

Además comentaron la necesidad de mejorar la calidad de las empresas de transporte mexicanas para poder cumplir con los requerimientos solicitados y así beneficiar a las empresas mexicanas bajando los costos de entregas puerta a puerta.

conociera la organización así como los beneficios y servicios que ofrece.

Una vez concluida la presentación del la USMCOC, tomó la palabra Karina Ley Parra, quien como Gerente General de Jaltrade dirigió su conferencia hacia los objetivos de la Casa Jalisco en EE.UU. y los beneficios que genera para la comunidad jalisciense de la región, así como los servicios que en materia de intercambio comercial se ofrecen.

Casa Jalisco, es un proyecto del Gobierno del Estado de Jalisco cuyo propósito es contar con un espacio físico que garantice la promoción, difusión, y acceso a los programas y servicios gubernamentales, promoviendo sus productos y servicios que a la vez

Puebla Chapter. Puebla, Pue.

Pacífico Chapter. Guadalajara, Jal.

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Rio Grande floodwaters were diverted in 2010 by the Commission into the U.S. interior floodway near Weslaco and Mercedes, TX in order to reduce flow in the river.

History

n 1848, the United States and Mexico Treaty of Guadalupe Hidalgo ended the Mexican-American War and established the boundary between the two countries. One hundred sixty-three years later, boundary and water disputes still

arise. The fact that these disputes rarely make the headlines—much less lead to armed conflict—is a tribute to the success of the institution charged with resolving these disputes: the International Boundary and Water Commission, United States and Mexico (IBWC).

Following the war, temporary commissions were established to demarcate the border by conducting surveys and erecting monuments. In 1889, the two countries decided to establish a permanent commission, the International Boundary Commission (IBC), whose main task was to resolve boundary disputes due to changes in the course of the Rio Grande.

By the twentieth century, priorities shifted and the two countries agreed to their first water treaty. The Convention of 1906 allotted the waters of the Rio Grande between the United States and Mexico at El Paso, Texas-Ciudad Juarez, Chihuahua. Thirty-eight years later, again the two countries came to agreement on how the waters of the Rio Grande and the Colorado River would be divided through the 1944 Water Treaty.

The IBC was renamed the International Boundary and Water Commission and charged with applying the boundary and water

Itreaties between the United States and Mexico and settling any treaty-related disputes. Scholar Stephen Mumme of Colorado State University, who has studied the IBWC for decades, calls it “the most venerable binational water management agency in North America.”

Structure and functions of the CommissionThe Commission consists of a U.S. Section and a Mexican Section, each being a part of its respective federal government. The Commission is unique in that it has both diplomatic and engineering functions. The U.S. Section is headquartered in El Paso, Texas, while its Mexican counterpart is across the Rio Grande in Ciudad Juarez, Chihuahua. The two sections also maintain field offices in many of the sister city pairs along the border where the Commission operates and maintains border water infrastructure and boundary monuments with staff from the two countries often working side by side.

The 1944 Water Treaty transformed the Commission which then embarked on an ambitious program to construct water projects authorized by the treaty. Today, the Commission operates two large international storage dams on the Rio Grande – Amistad Dam near Del Rio, Texas-Ciudad Acuña, Coahuila and Falcon Dam near Falcon Heights, Texas-Nueva Ciudad Guerrero, Tamaulipas. These dams store water critical for downstream farmers and cities in both countries, provide flood control, generate hydroelectric power equally for the United States and Mexico, and offer renowned fishing and boating. During 2010, after Hurricane Alex slammed into the Rio Grande basin OP

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The International Boundary and Water Commission: A Long History Of U.S.-Mexico CooperationBY SALLY SPENERPublic Affairs Officer, U.S. Section, International Boundary and Water Commission

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Mexican Commissioner Roberto Salmon Castelo (left) and U.S. Commissioner Edward Drusina shake hands after signing Minute No. 318 at U.S. Section Headquarters in El Paso, TX.

Amistad Dam on the Rio Grande.

in northern Mexico, Amistad Dam saw its largest flood releases since 1974 while Falcon Reservoir reached its highest elevation ever. Proper operation of the dams by IBWC engineers from both countries prevented untold flood damage downstream.

As part of its flood control system, the IBWC also maintains flood control levees at various locations. These flood control projects were developed jointly, allowing both countries to share the benefits. The U.S. Section is currently restoring its aging levees using $220 million in appropriations from the American Recovery and Reinvestment Act of 2009, efforts that will protect thousands of acres of land from flooding and have created or preserved nearly 2000 jobs for U.S. contractors and suppliers working on the projects.

In the area of water quality, the Commission has made a significant contribution by developing three international wastewater treatment plants along the border in California, Arizona, and Tamaulipas, providing technical assistance to other border communities developing their own sanitation projects, and conducting water quality studies.

Mechanisms for resolving ongoing disputesA powerful tool available to the Commission is the Minute (Acta in Spanish), an agreement of the Commission intended to implement the treaty and resolve disputes. Minutes are binding once approved by the U.S. Department of State and Mexico’s Ministry of Foreign Relations (SRE). The Commission has enacted 318 Minutes covering everything from technical specifications for construction of dams, to the responsibilities of each Section of the Commission for maintaining boundary demarcation features, to details for performing water quality studies.

In recent years, water supply management has become a major focus for the Commission. An extended Rio Grande drought in the 1990s and early 2000s created tensions as farmers on both sides of the river experienced hardship and pointed their fingers at each other. During that time frame, the Commission developed three Minutes to address the water deficit and spent countless hours brainstorming strategies for delivery of water allotted by treaty.

To ensure that each country receives its proper allotment, the Commission maintains a network of more than 60 gauging stations on the Colorado River, Rio Grande, and tributaries. These stations help track the national ownership of water in the rivers and reservoirs in accordance with formulas spelled out in the treaties.

As the Rio Grande pulled out of a drought several years ago, the

Colorado River moved into drought, potentially affecting millions of users in nine states in the United States and Mexico. In 2007 and 2009, U.S. Interior Secretary Dirk Kempthorne and Mexico’s Ambassador to the United States Arturo Sarukhan released joint statements supporting U.S.-Mexico cooperation on the Colorado River in which they applauded “the efforts of the IBWC and its work to help identify cooperative and innovative measures that both countries could implement” and cited opportunities for “water conservation, storage, supply augmentation, and environmental protection.”

Current Interior Secretary Ken Salazar has reiterated his support for this joint cooperative process. Three Minutes signed in 2010 related to Colorado River cooperation spelled early success for the initiative.The Commission still takes charge of resolving boundary disputes that continue to occur in the twenty-first century. By treaty, the IBWC is the agency charged with determining the location of the international boundary and preventing changes in the boundary by prohibiting construction of works in the floodplain that could obstruct or deflect the flows of the Colorado River or Rio Grande. The Commission routinely reviews proposed infrastructure projects, such as bridges, pipelines, and parks across or along the rivers to make sure they won’t cause a problem.

For most of the land boundary, the countries enforce a setback requirement. Nevertheless, encroachments still occur; whenever there is a question about whether a ranch fence, parking lot, roadway, or junkyard is illegally straddling the border, the IBWC surveyors investigate and make the determination. In 2009, the Commission adopted new maps of the Rio Grande boundary, reflecting international agreement on the location of the border taking into account recent changes in the river. To this day, the Commission maintains the boundary monuments, many dating to the nineteenth century, and demarcates the border at the international bridges and ports of entry (work that is done in the middle of the night so as to minimize traffic disruption).

IBWC an international model The international community’s high regard for the IBWC is a measure of the institution’s success. In recent years international visitors from across the globe—Arabs and Israelis along the Jordan River, the nations of the former Soviet republics trying to establish their own water treaties, leaders from conflict-prone river basins of Southeast Asia, and countries throughout Africa facing decades-old border conflicts—have come to the IBWC’s headquarters to learn more about the Commission’s institutional mechanisms for resolving boundary and water disputes. Initially established in the aftermath of war, the IBWC is now seen as a leading tool for peace.

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Three Issues for Mexico’s Economic Outlook

would like to thank the United States-Mexico Chamber of Commerce for the opportunity to share some of my thoughts on the Mexican economy, including both the conditions it faces currently and its outlook. I will

focus on three questions which have recently gained particular importance, in the hopes of shedding some light on possible answers. First, do recent indicators of moderation in Mexico’s economic activity substantially change its growth prospects? Second, are capital inflows to the country bound to continue, and if so, will they generate any financial problems? And third, what are the main challenges to the consolidation of price stability in Mexico? These comments, of course, are my own responsibility and do not necessarily represent those of the Bank of Mexico.

Current and future economic conditions

As you know, since the second half of 2009, along with the world economy, Mexico has been undergoing a process of economic recovery. The upturn has included positive annual growth rates for the industry and services sectors, which together account for approximately 94 percent of GDP. As a result, by the beginning of 2011, the levels of the monthly Global Economic Activity Indicator (IGAE) and of these two main components surpassed their corresponding values prior to the global financial crisis.

IThe improvement of economic conditions has occurred in tandem with the recovery in the United States, Mexico’s main trading partner. This has been particularly clear in view of the rebound of U.S. industrial production, which maintains a remarkably high correlation with Mexican industrial production through its manufacturing-export component. Hence, the initial engine of the upturn was external demand through highly dynamic non-oil exports, which account for more than 80 percent of total exports and include a high proportion of automotive exports.

Domestic demand in Mexico has also been in the process of recovering although at a less impressive pace. In particular, consumption, as measured by monthly retail sales, started to exhibit a clearer path of growth only since the middle of 2010. Among other factors, this lag may reflect unemployment rates which, on average, have been approximately two percentage points higher than their corresponding average before the crisis.1 It may also reflect the deterioration of real wages, which has partially reversed course in recent months. Both factors may contribute to an explanation of relatively depressed levels of consumer confidence. On the other hand, gross fixed investment has shown a moderate rebound in all major components, especially construction. Business managers appear to be reacting cautiously to the atypically slow recovery of the global economy and uncertainties over the extent of future expansion.

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BY MANUEL SÁNCHEZMember of the Governing Board of the Bank of Mexico at the United States-Mexico Chamber of Commerce

1 The average national unemployment rate was 3.4 percent from 2000 to 2008 and 5.4 percent since 2009.

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Some less encouraging recent data point to the possibility that the Mexican economy has entered a weaker growth phase. In particular, GDP in the first quarter exhibited lower seasonally adjusted growth than in the previous quarter, including deceleration in the industrial sector. The slowdown in Mexican industrial production coincides with that observed in the world economy, heavily influenced by factors that may be transitory. These include high oil prices, reflecting political tensions in some oil-producing countries, and supply-chain disruptions resulting from the tragic events in Japan last March. Oil prices fell during the second quarter, and recent developments as well as the reconstruction efforts underway in Japan seem to point toward a possible V-shaped recovery in that nation. Partly as a result of that, Mexican industrial activity and motor vehicle production, in which Asian manufacturers participate significantly, have exhibited a rebound in the second quarter.

It is too early to tell whether the recent weakening of worldwide industrial activity is a temporary phenomenon or not. At this point, the odds do not seem to allow us to discard the possibility of a soft patch rather than a definitive change in the trend. In any case, it is evident that the Mexican economy, and in particular, industrial production, will continue to depend on the strength of U.S. economic activity.

Although in recent months forecasters have cut their projections for world and U.S. economic growth, their baseline scenarios imply a continuation of the recovery. Against this backdrop, the Bank of Mexico estimates that the Mexican economy will grow between 4 percent and 5 percent in 2011 and between 3.8 percent and 4.8 percent in 2012. The domestic drivers of growth will continue to be financial stability, the expansion of banks’ lending to the private sector, including consumer credit, and further increases in employment and real wages. 2

The main downside risks to economic growth in Mexico are external. Most importantly, the United States and other advanced countries face the challenge of maintaining their economic recovery while gradually implementing exit strategies from their unusually expansionary monetary and fiscal policies. A particularly worrisome problem could be the fiscal consolidation that some countries will have to undertake in order to make their public-debt paths sustainable. A second risk is the possibility of persistently higher oil prices, which may hamper global growth. A third contingency regards a recovery in Japan that is slower than expected.

Financial markets and capital flows

By the time recession ended in the United States and Mexico, financial markets had attained more normal conditions. Indeed, global uncertainty and fears expressed in the flight to quality which had disturbed the Mexican stock, currency and bond markets during the crisis, eased substantially by the middle of 2009. Since then, asset prices have rebounded, if not at a steady pace. In particular, the Mexican stock market has surpassed its pre-crisis highs, although this year it has experienced downward adjustments.

Bond spreads, as expressed by the JP Morgan EMBI for

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Mexico, have tightened and stabilized during the first half of 2011 to around 160 basis points, slightly above its average in the same period of 2006. Consistently, the domestic yield curve has shifted downward, especially for the short- and middle-term interest-rate structures. These developments seem to reflect both lower country-risk perception and expected inflation based on the difference between nominal and real interest rates in domestic bond markets.

Additionally, the Mexican peso has gained value against the U. S. dollar, although somewhat less vigorously than the currencies of many other emerging economies. The lesser extent of Mexican peso appreciation may be partly due to the uncertainty regarding the sustainability of the U.S. economic rebound in light of the tight links between both economies. Moreover, recent news of further sovereign-debt problems in some economies in the European Monetary Union (EMU) has triggered international financial volatility, putting transitory pressure on the peso exchange-rate. Until the weak fiscal and financial situation of the EMU is solved comprehensibly, an event that may yet take some time, additional financial turbulence from this source cannot be ruled out.

As in other emerging economies, the upsurge in financial asset prices since 2009 has been fueled by substantial portfolio inflows to Mexico. These flows have been directed both to the equity and fixed income markets, most notably via government bond purchases. The total holdings of government securities by foreign investors have reached

2 For example, this year, Blue Chip forecasts for U.S. output growth for 2011 fell from 3.2 percent to 2.5 percent and for 2012 from 3.3 percent to 3.0 percent from February to July. However, the corresponding projections for Mexico were raised from 3.9 percent to 4.3 percent (2011) and from 3.8 percent to 4.0 percent (2012).

MANUEL SÁNCHEZ, Vice-Governor of the Bank of Mexico addressing members of the Chamber in New York.

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unprecedented levels, close to US$68 billion as of the end of June, more than 23 percent of the total outstanding.

To date, there does not seem to be a cause for concern regarding the effects of these capital flows to Mexico. Such movements seem to reflect a search for higher yields, given the extremely low interest rates that prevail in the United States and other advanced countries and the relative improvement of Mexico’s economic prospects. This search for yield occurs in the context of a Mexican peso that is freely convertible and now traded 24 hours with ample liquidity. An additional favorable factor seems be the inclusion in 2010 of Mexican government bonds into the Citigroup World Government Bond Index (WGBI), which is used as a benchmark by many index fund managers and institutional investors. As of now, there are no apparent signs of overheating in spending or the gestation of a credit or asset boom as a result of these flows, either of which could endanger control over inflation or the stability of the financial system. However, a possible reversal of these flows may translate into volatility and asset price declines, including exchange rate depreciation. Yet, if such an eventuality materializes, the functioning of the economy should not be affected, provided that monetary and fiscal fundamentals remain strong, and the banking system highly liquid and well capitalized. An additional element of strength will continue to be the flexible exchange-rate system that has served as a shock absorber in previous turbulent times.

In any case, the financial authorities will have to continue monitoring potential risks from various sources that may impair the functioning of the financial system, to prevent this from occurring and to act accordingly if an adverse situation emerges. This responsibility implies making progress in measuring systemic risk, strengthening the prudential regulation and supervision of the system, and perfecting the resolution mechanisms for insolvent financial institutions.

Challenges to price stability in Mexico

Monetary policy in Mexico has been conducted according to the constitutionally mandated primary objective of seeking

the stability of the purchasing power of the national currency. To express its commitment to this mandate, since 2001 the Bank of Mexico has implemented its monetary policy within an explicit inflation-targeting scheme. Starting from double-digit annual inflation, references were gradually reduced, and since 2003 the permanent target has been 3 percent annual inflation. This commitment refers to headline inflation as measured by the National Consumer Price Index (INPC). A variability range of plus/minus one percentage point around this benchmark was added later, an addition which should not be interpreted as a target but as an acknowledgment of uncertainty stemming from the highly volatile nature of some components of the price index.

In 2008 the Bank of Mexico formally replaced its policy instrument, moving from a quantitative guideline (the “corto”) to the overnight interest rate used in the interbank market. In the middle of that year, to counter pressures from currency depreciation and other supply shocks which had pushed inflation off the convergence path to its permanent target, the Bank of Mexico raised its reference interest rate by 75 basis points.3

However, in 2009 when it was clear that those pressures had ceased to threaten price stability, the Bank of Mexico relaxed its monetary policy. Specifically, from January to July of that year the overnight policy interest rate was cut 375 basis points in all, and since then the reference policy rate has been kept at 4.5 percent. The resulting expansionary monetary stance, as reflected in the central bank’s Monetary Conditions Index, among other indicators, has helped to mitigate the impact of the global trade and output contraction that led to the severe recession in 2009.4

Monetary policy was effective at bringing inflation back to the desired convergence path. Annual inflation fell from 6.5 percent in 2008 to 3.6 percent in 2009 and since then its average has been 3.9 percent. Furthermore, after hitting 3 percent in March of 2011, annual inflation has remained substantially close to, albeit somewhat above, the permanent target.

The fact that inflation has approximated the objective during

3 The “corto” was defined as the amount in the balance of the commercial banks’ accounts with the Bank of Mexico, for which the central bank provided daily liquidity at a price of twice the market interest rate. A higher “corto” signaled a more stringent monetary policy.4 The Monetary Conditions Index (MCI) is calculated as the weighted average of the changes in indicators of real interest rate and the real exchange rate with respect to their average level during a certain period. An exchange rate appreciation and/or a real interest rate increase lead to an increase in the MCI. Therefore, an MCI increase suggests relatively more stringent monetary conditions. To review this indicator as applied to Mexico, see Bank of Mexico, Inflation Report January-March 2011.

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the last four months is a hopeful sign, since a similar pattern had not been achieved since 2006. This progress should be beneficial to expectations for the sustained feasibility of the inflation target in a context of economic growth. In order to take full advantage of the current benign environment, monetary policy must continue to be geared toward facilitating the anchoring of inflation expectations on the permanent target. A challenge to this goal is the fact that medium- and long-term inflation expectations, as reflected in analyst surveys and the bond markets, still remain above 3 percent, and in the recent past, short-term expectations frequently surpassed this level by a large margin.

Monetary policy should also take into account the fact that certain factors that contributed to the recent decline in inflation could be transitory. These elements include the negative output gap, defined as the difference between observed and estimated potential output, as well as other measures of slack that will continue to tighten as the economy grows; unusually favorable agricultural prices; seasonal reductions of electricity tariffs; and the appreciation of the Mexican peso, which could vanish and even reverse course due to factors outside the country’s control. 5

These challenges notwithstanding, the Bank of Mexico is confident that the future path of inflation will be consistent with its convergence to the permanent target. The Bank of Mexico’s Governing Board has repeatedly stated that it will continue to examine all variables that could raise warnings about the emergence of any generalized pressures on prices and that, if such an event happens, it will adjust monetary policy to ensure convergence. According to the central bank’s estimates, headline inflation will most likely settle between 3 percent and 4 percent during this year and next, while core inflation will most probably settle in a range between 3 percent and 3.5 percent during 2011, and slightly below 3 percent in 2012. 6

Let me close by commenting on two recent developments that should strengthen the institutional framework of monetary policy. One is the publication, starting this year, of the minutes of the Board meetings for monetary policy. This action has the purpose of disclosing the reasons individual Board

members had for casting their votes, hopefully contributing to a better understanding of the basis of monetary policy decisions in Mexico. The second development centers on the transfer of the responsibility for producing the price indices to the National Geography and Statistics Institute (INEGI) beginning this month. The independence of INEGI from the Bank of Mexico should further support monetary policy credibility.

Finally, I would like to acknowledge the critical role that responsible fiscal policy in Mexico has played in the reduction of inflation. Narrow fiscal deficits and the adequate management of public indebtedness, as expressed in moderate debt-to-GDP ratios, the long duration of public debt, and low foreign-currency exposure, among other indicators, have been notably supportive. Definitively, the deepening of a solid fiscal position will continue to be a prerequisite for sustainable price stability in Mexico.

Concluding remarks

Since the middle of 2009, the Mexican economy has shown clear improvement. Recent indications of moderation notwithstanding, Mexico’s economic outlook continues to be one of recovery in which the main risks are external. Relative stability in financial markets has led to substantial capital inflows to the country, without generating any noticeable problems. Future reversals of these flows cannot be ruled out, given free capital mobility, but if they materialize, such events should not harm the functioning of the economy provided that its strong fundamentals are maintained. Finally, monetary policy faces the challenge of perseverance in order to ensure continued progress on the long road to price stability.

5 For an analysis of the output gap and other measures of slack, see Governing Board of the Bank of Mexico, Minuta No. 4, May 27, 2011.6 See the Bank of Mexico, Inflation Report January-March 2011.

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Overview

he North American Development Bank (NADB) is a binational bank capitalized in equal parts by the U.S. and Mexico governments. It develops and finances projects that preserve and enhance the environment

in the border region. NADB works with governments as well as private-sector investors, developing projects for water supply, wastewater treatment, solid waste management, air quality, renewable energy, and sustainable urban development. The bank has made substantial contributions toward improving environmental infrastructure in the U.S.-Mexico border region.

Nevertheless, NADBank continues to be an underutilized asset within the context of the U.S.-Mexico bilateral relationship.

Achievements, bank’s financing terms

If there is any single indicator of what NADB has achieved, it is the increased level of wastewater treatment along the Mexican border. In 1995 as the bank was beginning its work, the level of coverage stood close to 25 percent. Today, Mexican federal agencies estimate it to be about 85 percent. Tijuana, a major city where flows of untreated discharge into U.S. coastal waters had long been controversial, is approaching 100 percent.

TNADB offers competitive terms for project sponsors, in either pesos or dollars, at fixed or variable interest rates, and for terms of up to 25 years. To date, it has contracted approximately $1.24 billion to support 149 projects representing a total investment of $3.26 billion to benefit more than 12.8 million border residents from San Diego-Tijuana to Brownsville-Matamoros.

NADB an under-utilized resource

With encouraging prospects for renewable energy in the border region, NADB’s future is bright. A great recent example of this is the $77.4 million loan provided for a 23 megawatt solar park in Imperial County, CA, to serve customers of the Imperial Irrigation District (IID).The border region is ideal for generating solar and wind energy, and proper bilateral coordination will foster more interconnectivity and binational projects. NADB is poised to be an important financier in this burgeoning market.

The bank will continue to play a significant role in addressing basic infrastructure needs as demographic pressures continue, however, environmental infrastructure is only one of the many needs of the region. Despite the bank’s positive impact, its capital remains underutilized. With a total capitalization of $3 billion, its outstanding loan portfolio today is $478 million. OP

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NADBank: An Infrastructure Bank for the U.S.-Mexico Border RegionBy Gerónimo Gutiérrez FernándezManaging Director and CEO, North American Development Bank.

Road Rehabilitation Project in Tijuana, Baja California (PIRE, in Spanish). Consisted of the rehabilitation of 100 miles (160 km) of primary roadways with reinforced concrete using the “whitetopping” technique.

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It is time for a dialogue regarding NASD’s future moving toward better utilization of its capital to address a broader array of projects that are of strategic importance in the bilateral relationship. Infrastructure investment is critical to the region’s ability to be competitive in trade and commerce. The stakes are high. The U.S. Department of State estimates that NAFTA commerce is worth $1.7 million per minute, $2.4 billion per day, or $876 billion per year, and is growing.

The surface trade corridors between the U.S. and Mexico are vital to the area. Figures for March 2011 show surface trade—truck, rail and pipeline—totaled $32.1 billion, an increase of more than 15 percent over March 2010. Eighty percent of this surface trade —$20 million—is in trucks.

In the report, “North America Next: A Report to President Obama,” the North American Center for Trans-border Studies (NACTS) cited current investment needs of up to $16 billion for the U.S. and Mexico, and a ten-year total of $2.5 trillion for NAFTA ports and corridors (U.S., Canada and Mexico combined).

The creation of a “21st Century Border” is one of four pillars of the Merida Initiative. The concept is to facilitate legitimate commerce and movement of people across the border, while inhibiting illicit activity. Key to this endeavor is improved infrastructure and technology. Adjustments to the

NADB mission that would place ports of entry and related transportation infrastructure within its purview would not only enhance the affordability of these projects, but could also facilitate and encourage the “greening” of these projects.

A larger NADB loan portfolio that includes a broader array of needed border projects will generate greater earnings for the bank which could then fund grants for basic infrastructure improvements in the neediest communities in the region. This could help the bank mitigate what has been a steady decline in EPA grants for water and wastewater projects.

On June 16, Congressman Ruben Hinojosa (TX-15), whose district includes a portion of the Texas-Mexico border, is a member of the Congressional Border Caucus that filed H.R. 2216, NADBank Enhancements Act of 2011. The bill, co-sponsored by 20 members of Congress, authorized the president to negotiate changes to the bank’s charter to allow it to finance, in addition to its current environmental focus, projects that “promote growth in trade and commerce between the United States and Mexico, support sustainable economic development, reduce poverty, foster job creation, and promote social development in the region.’’ Similarly, resolutions have been presented in both chambers of the Mexican Congress in support of this idea.

Additionally, the resolutions have

received support from other sources. Think tanks have assessed the needs and made the recommendations, key stakeholders understand and approve of an NADB that addresses a broader range of needs. This is the time to seize this momentum and convert it into action as part of ongoing bilateral strategic efforts.

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San Luis Rio Colorado, International Crossing II in Sonora. Inaugurated in November 2010, it was the first project of its kind financed by NADB.

GERONIMO GUTIERREZ FERNANDEZ, Managing Director and CEO, NADBank.

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uring the 2011 Annual Meeting of the U.S.-Mexico Chamber of Commerce in Washington, D.C., Tomas

“Tommy” Gonzalez, city manager for Irving, Texas, made a presentation about infrastructure projects now underway in that city. Irving is a large city immediately northwest of Dallas. It is located over 400 miles from the nearest border with Mexico.

Without any additional information, one might be tempted to wonder why the infrastructure of any U.S. city located so far from the Mexican border would have any relevance to cross-border trade. Upon further consideration, however, the central location of Irving and the population center in which it is located, make it clear that infrastructure in Irving and the surrounding area matters greatly to trade with Mexico. Irving shares this distinction with every inland transportation hub in the U.S. and in Mexico, regardless of their distance from the border.

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Regional Infrastructure and Its Impact on Trade with MexicoBy Robert Martinez:ChairmanGreater Irving-Las Colinas Chamber of Commerce

DART Orange Line. Las Colinas Urban Center Station, Irving, TX.

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According to the statistics from the U.S. Census Bureau, trade between the U.S. and Mexico for the first four months of 2011 totaled over $145 billion. At this pace, figures for the entire year of 2011 will likely be more than $435 billion, reflecting an increase in the amount of such trade by approximately 11 percent from last year ($393 billion in 2010). Notably, this growth in trade between our nations has been consistent and has never declined, even during the depths of the recent recession and slow recovery. That is not to say that trade between U.S. and Mexico has not been affected by the economic downtown. But instead of decreasing trade, the effect has, so far, been limited to slowing the amount of growth. In other words, if we had not experienced the recent downturn, growth in U.S. – Mexico trade would probably have been even stronger in recent years.1

Irving is located in the north central part of the Dallas-Fort Worth Metroplex. In that Metroplex, the population is approximately six million people. Interestingly, it is estimated that in the same area, Hispanics account for close to 20 percent of the population. Partly within its borders, Irving is home to the DFW International Airport, itself an economic engine that is credited with

bringing over $16 billion of economic activity to the North Texas region every year. That economic impact derives not only from passenger travel, but from air freight activities as well, shipping over 700,000 U.S. Tons of cargo in 2010.2

Because of its placement between Dallas and growing communities and regions to the north, Irving is also a transportation crossroads. As a result, Irving, in many ways, is one of several important gateways for trade between Mexico and the United States.

Because Texas has the longest border with Mexico of any U.S. state, it offers many important surface transportation routes for the goods bound for each country. The DFW area is a single day’s drive from the Mexican border, putting it on the forefront of border commerce in Texas. Not surprisingly, the region, including Irving and DFW airport offer consolidation and distribution facilities that make it a leading logistic hub and one of the most logical trade routes for this massive volume of trade.

Motor vehicle, rail and air traffic brings approximately one million travelers through Irving every day. Irving is home to several freight truck terminals and, as mentioned, it is home to an airport surrounded by numerous freight

State Highway 183 is one of the Dallas area’s major transportation projects.

forwarding and consolidation facilities. This means that goods must get to and through Irving using the infrastructure discussed by City Manager Gonzalez at the annual USMCOC conference.

In and around Irving, highway expansion construction projects have been planned for decades and are now beginning to take shape. For example, we are now seeing the upgrading, enlargement and enhancement of the three major state highways that serve not only commuters and local traffic, but DFW Airport as well.

One new feature of these enhancements will include what are known as “managed lanes.” Managed lanes are like toll roads that run within the right of way of the free lanes. Those wishing to pay for the convenience of traveling on less congested lanes will simply enter the paid lanes. Using RFID (radio frequency identification) technology, a vehicle using the tolled lanes will be charged only for the time or distance traveled in those lanes. The rates charged will be based on the time of day and demand; with rates higher when congestion is greatest. It is hoped that this time/price demand management will discourage use at peak hours and more evenly distribute

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3 NCTCOG Website: www.nctcog.org/trans/tip/index.asp. 4 U.S. Chamber: www.uschamber.com/press/speeches/2007/rebuilding-america-time-now-remarks-thomas-j-donohue-president-and-ceo-us-chamber. 5 U.S. House T&I Committee: transportation.house.gov. 6 Transportation Summit: www.transportationsummit.com.

traffic to off peak periods of time. In addition, it is hoped that the availability of such “premium” lanes will free capacity for commercial traffic.

The planning behind these projects was motivated by a variety of factors, including the age of the existing infrastructure. Also important, however, has been the need for the road system to handle the anticipated increases in traffic we expect to see in the next several decades. Of course, a large component of that expected traffic is the ground freight demands that will accompany increased trade with Mexico. More information about the transportation improvement plans in the north Texas area can be found at North Texas Council of Government web site.3

In addition to highway projects, a light rail mass transit line currently under construction by DART (Dallas Area Rapid Transit) will take passengers from downtown Dallas to Irving by the end of 2012. This route, known as the Orange Line, will reach DFW Airport by the end of 2014. With the completion of the route, DART’s rail system will connect Irving and the airport with the rest of the Metroplex, reducing, to some extent, the demand for highway capacity by providing alternative means of transportation for passenger vehicles. When that goal is accomplished, it will mean fewer passenger cars competing for capacity with vehicles carrying goods, including those that originate in, or are destined for Mexico.

An example of the importance of transportation to Irving can be seen each year as the City of Irving hosts the Transportation and Infrastructure Summit. On August 9-12, 2011, the city again hosted the 14th annual summit, which has grown from a regional to a national and international gathering. Each year, the Summit attracts federal and state legislators, governmental executives and business leaders whose portfolios include transportation planning and execution. It has been a venue at which major initiatives have been announced. One such notable announcement was the one made by Tom Donohue, the President of the U.S. Chamber of Commerce during his keynote remarks. On August 10, 2007, Mr. Donohue introduced the U.S. Chamber’s Rebuild America Initiative. That program is intended to bring attention to our nation’s deteriorating infrastructure and provide legislative support and lobbying in favor of restoring the health of the U.S.’s infrastructure.4

The keynote speaker at the Summit this year was be U.S. Representative John L. Mica (R-FL), Chairman of the House Transportation and Infrastructure Committee. Because a bill has just recently been introduced in the U.S. Congress that is intended to create a long term funding plan for surface transportation, much attention was paid to the Chairman Mica statements on transportation. This bill, known as the surface transportation reauthorization bill, has been the subject of great

interest by business and governmental leaders for the past several years, so its discussion at the summit was closely followed. More information about the House Transportation and Infrastructure Committee can be found on its web site.5

And more information about the 14th Annual Transportation and Infrastructure Summit can be found at its Web site.6

Conclusion

As trade between the U.S. and Mexico continues to grow, the transportation infrastructure of both our countries must be ready to handle the demands created by that trade. That readiness, in turn, must be an issue of critical importance to the U.S. – Mexico Chamber of Commerce. We must keep fully engaged on transportation issues, both with our business leaders and with our federal, state and local governments.

It is also important that we continue to participate in conferences and summits that focus on transportation issues. When transportation is being discussed, the interests of international trade are usually regarded as being in harmony with domestic transportation concerns. But when limited resources have to be allocated, as they do in tight budgetary times like the present, it will be all the more important for international trade concerns to be represented.

The work done by the City of Irving provides an excellent example of the interconnectedness that is the foundation of international trade. That work is not only done by actual infrastructure improvement, but by participating in, and hosting conferences and summits that deal with transportation.

The continued and growing need for improved infrastructure to deal with cross border trade will require all those interested, including the U.S.-Mexico Chamber of Commerce, to work with business and government at all levels, to support infrastructure support and improvement.

39

MID-AMERICA CHAPTERChicago, IL

AeromexicoContinental/United

INTER-AMERICAN CHAPTERMiami, FL

Aca FilmsBlangue 13–Blanca GuerraCarlton FieldsFedexHotel Camino Real Santa Fe

NORTHEAST CHAPTERNew York, NY

3M Media Group Acedo Santamarina, S.C.Assad Sabag AlcaldeFidelity National de Mexico S.A. de C.V.Fredericks Michael & Co.GDX Ventures Canada Ltd.International Council of

CALIFORNIA REGIONAL CHAPTERLos Angeles, CA

Council for International Tax Iberoamericana TravelLisa BrimmOhana Real Estate Investors

SOUTHWEST CHAPTERDallas, TX

Law Ofices of Kenneth G. WincornNew Western, Real EstateVelur Enterprises, Inc

GUANAJUATO CHAPTERLeón, Gto.

ArgosGrupo ACRA.Lic. Lourdes Gutiérrez “Notaria 50”Operadora Turística Agave, en San Miguel de AllendeServicios Corporativos Argos, S.A de C.V“Ve” Vanguardia Empresarial

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New members to the United States-Mexico Chamber of Commerce

PACIFIC NORTHWEST CHAPTER Seattle, WA

Ambassador Alejandro García Moreno ElizondoBankWeb, LLCConsulate of Mexico in SeattleDaniel CouttolencDavid Spencer Law FirmGabriela MichanJosé Antonio GloriaQuality Agave Imports, LLCTechBA-SeattleUNAM Pacific Northwest

Shopping CentersPatterson Belknap Webb & Tyler LLPPineBridge InvestmentsProject Paz, Inc.RCH Fields Family Wealth Management LLC Shearman & Sterling LLP Steven FloresWildes & Weinberg

40

zteca America was launched in 2001 with a single station in Los Angeles: KAZA, Azteca 54. For the next seven years

the network grew by an average of ten new stations annually, reaching 60 in 2007. Under the direction of company chairman and founder Ricardo Salinas Pliego, the currently network reaches 74 communities throughout the United States through over-the-air digital and analog stations in addition to local and national cable and satellite coverage. Additionally, it currently attracts more than 40 percent of Mexico’s commercial audience with two national networks and a third signal in the Mexico City metropolitan area over the air, with national coverage on satellite and cable services. Azteca has also operated Azteca Guatemala since 2008.

Azteca America is a wholly-owned subsidiary of Azteca, the second-

largest Spanish-language television producer and

broadcaster in the world.

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AZTECA AMERICA:The force of television for a decade

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at Azteca America,” said Martin Breidsprecher, CEO of Azteca America. “Our first decade of operations is a strong platform to push us to excellence for the next ten years and beyond.”

Privatized in 1993, TV Azteca introduced competition in a television market that was controlled for decades by a monopoly.

Azteca America offers the best of more than 200,000 hours of original content and news from correspondents in all 32 states of Mexico, as well as regional news correspondents through the United States. The network complements Mexican production with local and international productions to ensure the best options for Spanish-language viewers in the United States.

As the first to break the decades-long stronghold of novela production in Mexico, Azteca has produced thousands of hours of stellar programming. The network broadcasts top coverage and analysis of Mexican FLM professional soccer, as well as the award-winning drama series “Lo que Callamos las Mujeres” and “El Milagro de los Santos”; entertainment shows such as “Ventaneando America”; and reality shows, such as “La Academia.”

In 2012, Azteca will inaugurate new sound stages that promise to be the most technologically advanced in Latin America, ensuring the positioning of the company as a continued leader in the production of Spanish-language programming.

Growth planned for 2001-2012

For the 2011-2012 season, Azteca America has centered its strategy on better coverage, HD programming, new talent and expanded infrastructure, continued programming excellence, superior product integration options and digital platforms.

Important coverage gains include the migration from low- to full-power stations in Dallas and Houston, and expanded cable coverage in Philadelphia and Washington D.C.

Azteca America will also begin HD transmissions in the next twelve months which will also be available on key pay TV services in top markets.

Fundación Azteca America: A commitment to the community

Fundación Azteca America is a private nonprofit organization created by Grupo Salinas to serve as a vehicle to promote the well-being of the Latino community in the United States. Its mission is to serve as a bridge between contributors and established nonprofit organizations.

The foundation, led by Azteca America chairman Luis J. Echarte with operational support from Fundación Azteca America executive director Nathalie Rayes, works closely with Azteca America to promote Grupo Salinas’ core values of improvement in the quality of life in the communities where it operates. Through the medium of television, it is able to reach millions in the effort to promote positive social change.

Another tact in the effort to accomplish its mission Fundación Azteca America has undertaken has been to pull together a team of representatives from top Latino organizations to discuss the most relevant topics for the Latino community: economy, immigration, health, education and civic responsibility. Members of that team include the Congressional Hispanic Leadership Institute, Labor Council for Latin American Advancement, Southwest Voter Registration Education Project, Latino Issues Forum, National Association of Latino Elected and Appointed Officials, National Council of La Raza, NDN, Republican National Hispanic Assembly and Voto Latino.

Luis J. Echarte. Chairman of Azteca America

42

hen economies are in crisis, smaller businesses are usually the first to lead the recovery.

Why? Because they are nimble, dedicated, creative and – in many cases – desperate to keep their dream alive.

Throughout the world – even in the often-struggling business climates of emerging economies like those in Latin America – small- and medium-sized enterprises (SMEs) continue to grow both in standing and in confidence.

That is an amazing situation, given how little is done for them.

According to the recently published 2010 HSBC Small Business Confidence Monitor – a survey of more than 6,300 SMEs in Asia, the Middle East, Europe, North

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Gain Access to Resources Will Reap Enormous Returns for Latin America’s Economic Recovery

America and Latin America – 95 percent plan to expand their workforce in the next six months and 87 percent expect to increase or maintain capital spending levels. And perhaps most importantly, 84 percent have a positive outlook on the future of their business.

One hopes that this confidence is not misguided optimism. The lingering recession has taught agile SMEs some valuable lessons, and many are striving – creatively and with passion -- to be more efficient and to capitalize on new domestic and international opportunities.

That said, the worldwide recession presents special challenges to all companies, especially smaller enterprises in the early stages of development. Even in good times, more than 85 percent of new companies in Latin America close down in their first year of operation, according to Chilean entrepreneurs and authors Hernan Herrera and Daniel Brown.

What they need is access to the resources to succeed, something Latin American governments, educational institutions and larger corporations are sometimes slow to provide. According to Alvaro Vargas-Llosa of the Independent Institute, it costs more to open a business in Latin America than anywhere but Africa and the Middle East. That disregard for the needs of eager entrepreneurs is one of many reasons why our region has less entrepreneurial activity than others.

It hasn’t always been this way. Nearly a century ago, when the First World War cut off imports to Brazil, the

HELPING SMALL BUSINESSES

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“FedEx commissioned a study by the Economist Intelligence Unit (EIU), which found that business leaders in the region believe our workers sorely lack hard and “soft skills” needed to be successful in our increasingly-globalized markets.”

Brazilian government spawned the creation of nearly 6,000 new businesses to replace the products that had previously come from Europe. That initiative, along with the more recent refinement of a Brazilian ordinance that reduces taxes on imports used to make products for exporting, is further evidence that creative solutions to real-world problems breed economic revivals.

Still, there is much to be done to further propel SMEs and our still-tenuous economies. Far too often, the problems facing SMEs do not stem from a lack of wherewithal, aid or talent. It is the lack of access to or knowledge of those resources. The problem is further magnified for the growing numbers of women entrepreneurs, who face cultural barriers that further reduce their access to training, funding and networking resources.

In other words, Latin America’s ongoing educational crisis is slowing our economic recovery – because it impacts our burgeoning small businesses, too.

Last year, as part of our ongoing commitment to identifying and addressing educational needs in Latin America, FedEx commissioned a study by the Economist Intelligence Unit (EIU), which found that business leaders in the region believe our workers sorely lack hard and “soft skills” needed to be successful in our increasingly-globalized markets.

While the statistics regarding Latin America’s poor grades on childhood and tertiary training are well documented, they also reveal that those educational deficiencies translate to the workplace, too. Many budding SMEs don’t know where to find the right talent, funding or training in order to be competitive on the international stage.

Those that do manage to launch and manage businesses are still hampered by onerous tax burdens and an often undecipherable tax code. Studies have found that in Mexico, small and medium-sized businesses are spending 30 percent of their resources on tax and accounting specialists; in several countries, business start-up procedures

are complex, time-consuming and vary from state to state, further

delaying or dissuading entrepreneurial activity.

And yet, many are persevering and some are thriving. But they could do better, with more of our help.

While some Latin American governments are trying to bolster their support of SMEs, businesses can’t solely rely on government aid. Other major pillars of our society – private businesses and educational institutions – need to step up efforts to assist and guide SMEs. Doing so assists them, and the rest of us, too.

According to Herrera and Brown, the best way to create a culture of entrepreneurship is to provide business owners with a variety of “simple, continuous education programs.” Where those exist, the benefits can be immediate and impactful.

Consider, for example, the Americas Venture Capital Conference that took place in August in Miami. Florida International University hosted this two-day educational initiative, which is a unique forum for innovative enterprises in South Florida and Latin America to showcase their ventures, and to meet established firms and potential investors to develop strategic alliances.

In addition, some selected companies will be invited to make a presentation to venture capital firms. What a great idea and a wonderful opportunity for burgeoning SMEs.

Another recent example was last year’s Tour of Businesses in Chile, organized by Endeavor Uruguay, which brought a delegation of Latin American entrepreneurs to visit successful companies and meet with potentials investors and clients from one of the region’s most developed countries.

In my division, FedEx Express Latin America and the Caribbean, we primarily serve SMEs. Since 2004, we have offered thousands of business owners, managers and employees numerous workshops on a host of business topics through our PyMEx Program, as well as tools that provide consulting services and other benefits to assist SME in navigating the complexities of global trade.

FedEx also strives to encourage budding entrepreneurs through our support of Junior Achievement and its JA Company Program for teenage students in Latin America. Students design, start and run their own businesses with support from local volunteers. Thousands participate annually, and FedEx proudly sponsors the Global Access Award for the top JA Company Program participants.

We are proud of this work, but know that we must redouble our efforts as we emerge from the recession.

Companies, universities, governments – let us unite to do more for SMEs in Latin America. Doing so will pay enormous dividends for SMEs and further spearhead the economic recovery they are helping to lead it.

JUAN N. CENTO, President of the FedEx Express Latin America and Caribbean Division

44

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INTER-AMERICAN CHAPTER. MIAMI, FL

SOUTHWEST CHAPTER. DALLAS, TX.

NORTHEAST CHAPTER. NEW YORK, NY.

MID-AMERICA CHAPTER. CHICAGO, IL

CALIFORNIA PACIFIC CHAPTER. LOS ANGELES, CA.

BAJÍO CHAPTER. LEÓN, GTO.






VALLE DE MEXICO CHAPTER. MÉXICO, DF.

BINATIONAL EVENT









BAJÍO CHAPTER. LEÓN, GTO.

INTER-AMERICAN CHAPTER. FLORIDA

INTER-AMERICAN CHAPTER. FLORIDA



Independence Festivities

Partnering Luncheon

Mexico’s Independence Day Celebration

2nd Mexico Update: Mexico’s fight against organized crime and a review of the Merida Initiative

“Third Baja California Investment Forum 2011” Two day Seminar

“Green Hotel” Certification Progam

Mexico Tourism Forum

90th Anniversary USMCOC Northeast Chapter

“14th Annual Mexico Economic Review and Political Outlook 2010”.

“Strategic Planning for 2012 for CEO’s and Top Executives”. Bill Steirle

Trade Mission

1° Expo+Congreso GIET “Global Infrastructure & Eco-Technology”

Binational Meeting, Mexico 2011 & Awards Gala Dinner

“Sabores auténticos de Mexico” Dinner

“Latino Cultural Concert”

Investment Forum

Retail Market in Mexico: Business & Investment Opportunities

“Developing a positive work environment to create employee retention”, Bill Stierle

Mexico as Premiere Source of Human Capital for Global Competitiveness

Fruit s and Vegetables Expo (Produce from Mexico, Business Opportunities) where sellers and buyers will meet. Event organized by Promexico, LA Produce Market, and US-Mexico Chamber of Commerce. Export Assistance

“California’s’ Manufacturing Partnership. How to Minimize your Production Costs”

“Green Hotel” Certification Progam

Executive Annual Dinner

Mexico Vibra Launching cocktail

Mexico Tourism and Investment Forum

Hispanic Market Forum

1-30

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15-16

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TBD

TBD

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16

29-30

30 and 01 Dec

TBD

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2-3

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26

TBD

TBD

TBD

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Biltmore Hotel

Crowne Plaza Hotel

TBD

One Prudential Plaza 130 e Randolph dr 39th floor

TBD

TBD

Biltmore Hotel

TBD

TBD

TBD

Jalisco & Guanajuato

World Trade Center, Ciudad de Méxcio

TBD

TBD

City Hall

Strasburger Center

ICSC

TBD

TBD

TBD

TBD

TBD

TBD

TBD

One Prudential Plaza 130 e Randolph dr 39th floor

TBD

[email protected]

Josie Orosco <[email protected]>

[email protected]

Blanca Berthier <[email protected]>

Marlen Marroquin <[email protected]>

[email protected]

[email protected]

[email protected]



[email protected]

[email protected]

Eduardo Bialostozky <[email protected]>




[email protected]


[email protected]



sergio ponce <[email protected]>

[email protected]

[email protected]


[email protected]

SEPTEMBER / SEPTIEMBRE

NOVEMBER / NOVIEMBRE

OCTOBER / OCTUBRE

CHAPTER

CHAPTER

CHAPTER

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EVENT

EVENT

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FOR FURTHER INFORMATION



46

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Documents

mexico cultural

mexico office

united states office

francisco lpez rivera

pacific coast of mexico

communications cecilia

president ceo

multicolor industria