NAFTA MONITOR
VOLUME I, NUMBER 5
Tuesday, January 25, 1994
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Headlines:
U.S. ASSIGNS AGENCIES TO HEAD DEVELOPMENT OF NAFTA
COMMISSIONS
LEADERS IMPLEMENT "BUY MEXICAN" CAMPAIGN
COALITION DEMANDS FUNDS FOR U.S.-CANADIAN BORDER
MEXICO PLANS MORE PRIVATIZATION
CONAGRA SIGNS DEAL WITH MEXICAN AG COMPANY
RESOURCES
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U.S. ASSIGNS AGENCIES TO HEAD DEVELOPMENT OF NAFTA
COMMISSIONS
The Environmental Protection Agency (EPA) was named to head the
U.S. task force organizing the trinational Commission for
Environmental Cooperation (CEC) established under NAFTA. Most
key decisions on setting up CEC will require coordination and
cooperation with Mexico and Canada. But EPA and U.S.
environmental sources say their north and south NAFTA partners
have been slower in moving forward in preparations because of
election-related shifts in personnel. EPA Administrator Carol
Browner is scheduled to meet with top Mexican and Canadian
environmental officials next month to begin talks on CEC
development.
The joint deputies group of the U.S. National Economic Council and
the National Security Council also appointed the Treasury
Department to lead organization efforts of the North American
Development Bank and the State Department to head U.S.
coordination of the Border Environment Cooperation Commission.
Source: "EPA To Coordinate U.S. Role in Setting Up NAFTA Green
Commission," INSIDE NAFTA, Vol. 1, No. 1, January 12, 1994.
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LEADERS IMPLEMENT "BUY MEXICAN" CAMPAIGN
Mexico Commerce Secretary Jaime Serra Puche and Finance Secretary
Pedro Aspe Armella teamed up with business leaders last November
to organize a national advertising campaign aimed at curbing
consumer purchases of foreign goods. Mexican toy, textile, candy and
shoe industries have been struggling for sales since Mexico joined the
General Agreement on Tariffs and Trade in 1986 and many other
manufacturers fear NAFTA will have the same the same effect.
The National Advertising Council of Mexico said it took them three
months to develop and produce the "made in ... chismo" campaign.
No flags, logos or brands are included in the advertisements, which
appear in almost every national magazine and on television. All the
advertisements show two products -- one foreign versus one
domestic -- and urge Mexican consumers to compare quality, price
and service before buying. The TV ad states "not all imported goods
are high-quality. Some will disappoint you." Some Mexican
consumers complain that it is hard to buy Mexican-made goods when
store shelves are filled with cheap, well advertised imports.
Although the ad campaign is scheduled to last only one year,
sponsors are willing to extend it for up to five years if it is successful.
Source: Claudia Fernandez, "Made in Mexico," EL FINANCIERO
INTERNATIONAL, January 17-23, 1994.
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COALITION DEMANDS FUNDS FOR U.S.-CANADIAN BORDER
A coalition of eight U.S. border states and three Canadian provinces
are calling for $7 billion in funding over the next 20 years to
improve border-crossing facilities. The coalition said severe
congestion already exists along the "forgotten" U.S.-Canadian border
and it is worried that most funding for infrastructure improvements
and for additional border crossing personnel will be channeled to the
U.S.-Mexico border. U.S. members of the coalition "strongly protest
any shifts of U.S. Customs and/or immigration forces from the
northern U.S. border to the southern border with Mexico."
U.S. Customs employs less than 1,000 inspectors along the northern
border. Representatives of regional governments say there are three
times more trade crosses per year between the U.S. and Canada than
along the U.S.-Mexico border, where more than 1,500 inspectors are
employed. The coalition outlined work needed on 62 highway
crossings, 20 railroad crossings and six ferry crossings.
Meanwhile, the Border Trade Alliance, organized by state and local
government administrators and business persons from both sides of
the U.S.-Mexico border, will meet with their northern counterparts in
late February to devise a "seamless border" association. The group
hopes to create one united front to press legislative and
infrastructure initiatives.
Sources: "U.S.-Canadian Coalition Seeks Funds to Improve Border
Crossings," JOURNAL OF COMMERCE, January 18, 1994; "U.S.-Mexico
Border Group to Build Ties With Northern Counterparts," INSIDE
NAFTA, Vol. 1, No. 1, January 12, 1994.
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MEXICO PLANS MORE PRIVATIZATION
The Mexican government announced plans to privatize four
companies, worth approximately $260 million, this year. Up for sale
will be Ocean Garden, a seafood trading company; three paper mills; a
newspaper chain with five publications; and a system of warehouses
scattered throughout Mexico. Jorge Silberstein, an official at Mexico's
Office of Privatization, said he expects the warehouses to sell for "lots
and lots of money." U.S. paper companies are expected to be among
the bidders for the paper mills, while some international investors
have already shown strong interest in Ocean Garden. As for the
newspapers, Silberstein said, "We haven't figured out what to do."
The government may also be preparing Pemex, the government-
owned oil company, for sale sometime during the next presidential
term, according to an article in the WALL STREET JOURNAL. "Right
now, (Pemex) isn't going to be sold," Silberstein said, but he added
that the oil company is beginning to look for joint ventures and sales
of some assets.
Source: Craig Torres, "Mexico Plans to Sell Four Firms as Part of
Privatization," WALL STREET JOURNAL, January 21, 1994.
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CONAGRA SIGNS DEAL WITH MEXICAN AG COMPANY
ConAgra Inc. signed an agreement with the Mexico City-based
holding company, Desc Sociedad de Fomento, allowing the U.S.
agriculture giant to purchase 20 percent of Desc's pork and poultry
subsidiary, Univasa. Desc's Chairperson and CEO Fernando Senderos
Mestre praised the agreement. "Coming on the heels of the recently
implemented NAFTA accord this union is a significant step in
achieving our goal of discovering new venues to market our food
products," Mestre said. ConAgra has the option to purchase up to
49.9 percent of Univasa, whose annual sales average $185 million,
during the next four years.
Sources: "ConAgra Deal Signed," EL FINANCIERO INTERNATIONAL,
January 17-23, 1994; "ConAgra Buys Into Mexican Ag Company,"
AGRIBUSINESS, January 17, 1994.
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RESOURCES:
LATINAMERICA PRESS, Volume 25, Number 47, December 23, 1993.
7 pages. $1.75. Accounts Desk, Apartado 18-0964, Lima 18, Peru.
This weekly publication covers emerging trends in Latin America.
Included in this issue is a review of Mexico's PRI presidential
candidate and the ruling party's control of Mexican media.
TWIN PLANT NEWS, Volume 9, Number 5. 98 pages. $15.00. 4110
Rio Bravo Dr., Suite 108, El Paso, TX 79902. (915) 532-1567. Fax:
(915) 544-7556.
This magazine, directed at U.S.-owned maquiladora operators and
investors, is a guide to "doing business in Mexico." Included are lists
of Mexico's top auto, food, financial, commerce, electronic, textiles,
glass and agriculture companies (10 of the top 100 are U.S. giants) as
well as leading import and export companies.
INSIDE NAFTA, INSIDE U.S. TRADE. Yearly subscription $595.00. P.O.
Box 7167, Washington, DC 20077. (800) 424-9068. Fax: (703) 416-
8543.
This new publication will focus on tariff, countervailing
duty/antidumping actions, NAFTA dispute settlement, environmental
and labor policymaking, related trade policymaking, non-NAFTA
Americas trade pacts and other Mexican and Canadian trade and
investment initiatives.
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Editor: Gigi DiGiacomo, The Institute for Agriculture and Trade Policy
(IATP),1313 Fifth Street SE, Suite #303, Minneapolis, MN 55414-
1546 USA. Telephone:(612)379-5980 Fax:(612)379-5982 E-Mail:
[EMAIL PROTECTED]
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