Telecom Equipment Treaty for Canada and Mexico

Telecom Equipment Treaty for Canada and Mexico

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Photo credit: Networking Switch by felixtriller.

Effective as from June 1, 2012, the Canada-Mexico Treaty acknowledges standard evaluation proceedings for telecom equipment. This will facilitate imports/exports between these two countries. This Treaty does not cover electric security and is only usable for testing labs approved by their respective Governments.

A year ago, the same Treaty with US equipment entered into force. Now we are integrated into hardware, maybe next step would be to tear down some regulations on foreign investment.

The Mexico-Brazil auto deal

The Mexico-Brazil auto deal

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Photo credit: Fiat Made in Brazil ~~~~ DSC04692a_hdr-ort by SantaRosa OLD SKOOL

It was 1921 when Buick established the first car production plant in Mexico.  Over 90 years later, Mexico became the fifth export country for vehicles in the world, only behind the US. Now, Mexican automotive industry is playing a key role for OEMs, tiers and aftermarkets.

It appeared that nothing would stop Mexico from reaching the fourth place of exporters, but Mexico became victim of its own success.

During 2011, Brazil had a deficit of $1,170 Millions USD with Mexico and requested to renegotiate the terms of Complementary Economic Agreement No. 55 (ACE55), in particular the Appendix II for the Automotive Industry.

After some negotiations, on March 19, 2012, Mexico and Brazil executed the fourth protocol amending ACE55, and setting up the rules for allocating import/export quotas, as well as certain tariff preferences for HTS that will rule until March 18, 2015. Thereafter, free trade will return to full effect.

In Mexico, quotas were allocated to exporters complying with the following requirements: (i) minimum manufacturing volume of 40k new vehicles, (ii) registration of light vehicle manufacturer according to the Automotive Decree, (iii) investments of capacity for 40k new vehicles, (iv) exports to Brazil during last 2 years. The top quotas were allocated to Nissan ($90M USD) and Chrysler ($83M USD).

 Argentina had a $1,000 Million USD deficit with Mexico during 2011, and threatened to negotiate an amendment to ACE55 last March 21. After rejection from Mexico, Argentina imposed restrictions to imports from all countries. In reaction, a group of 40 countries (Mexico included) are now presenting a filing before the World Trade Organization to enforce free trade.

Regardless of the fact that Brazil and Argentina are not big destinations of Mexican exports, in relation to the total exports, the truth is that such restrictions affect the global planning for OEMs, and other companies living around them (Tiers and aftermarket).

All Plants announced by OEMs in Mexico will not be cancelled but adjusted. It is early to know what will be the effect on Brazilian or Argentina automotive capitals at this moment, but restrictions on imports will not protect national investments. After all, capitals are like water, they will find a way to elude artificial barriers.

The Digital Transition Side Effect: Proposal of Packaging and Labeling for Non-digital TV Sets

The Digital Transition Side Effect: Proposal of Packaging and Labeling for Non-digital TV Sets

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Photo credit: TV 40 by gildas_f

On July 2004, Vicente Fox, former President of Mexico, set the time-frame for digital TV transition for December 31, 2021 divided in 6 periods of time.

Now, during the third period, and under the Administration of Felipe Calderon, a new Decree was issued on September 9, 2010 to fix concrete actions directed to accelerate adoption of Digital TV, being the most important, the bidding of 700 Mhz bandwidth during 2012.

As a side effect, last September 28, 2011, Ministry of Economy proposed changes for labelling and packaging obligations on consumer electronics standards, in particular on non-digital TV Sets (without A/53 tuning features).

Importers, manufacturers and traders of non-digital TV Sets need to indicate that such sets do not comply with A/53 standards on:

(a)           Packaging with size double of regular commercial information.

(b)           Instructions.

As a marginal note, Mexico has a 93% TV density on homes of a total of 25.4 homes, only 13.6% of those have digital TV sets.  There is no secret that subscription TV in Mexico has been raising (cable/satellite).  Recent statistics indicate a combined amount of 10 million subscribers.  However, non-paid TV users remain majority of service.

Under the Regulation Improvement Proceeding of Mexican Law, it is possible for interested parties to provide comments to the authorities before October 31, 2011, and shape this regulation according to commercial needs and trades.  Let me know if I can be of help.

Strategic Association Agreement between Mexico and Uruguay

Strategic Association Agreement between Mexico and Uruguay

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Photo credit: Uruguay by Vince Alongi

On September 20, 2011, Mexican President Felipe Calderon published Strategic Association Agreement between Mexico and Uruguay.

The scope of this Agreement covers the following:

  • Establishes mechanisms for political, cultural, economic and social cooperation and discussion.
  • Reinforces the current free trade agreement executed on November 15, 2003 (ACE 60).
  • Repeals the Bi-party commission established on October 9, 1990 and replace it with Association Council, presided by Ministry of Foreign Affairs of both countries.
  • Funds US$500,000 for mutual cooperation in technical and scientific areas.

This Agreement help traders and manufacturers to take advantage from the free trade agreement and try to land business in both countries.

Mexico and Colombia change formats for certificates of origin and declaration of origin

Mexico and Colombia change formats for certificates of origin and declaration of origin

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Photo credit: Colombian Flag by DeptfordJon

Last August 3, 2011, Ministry of Finance published amendments to the formats for certificates of origin and declaration of origin under the Free Trade Agreement between Mexico, Colombia and Venezuela, originally executed on June 11, 2010.

These amendments published on Mexican Federal Official Gazette were originally agreed between Mexico and Colombia on August 2, 2011, and affects only formats for Colombia products.

Certificates issued before August 3, 2011 will still be in force until they expire.


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