Alliance 22 by USMCOC

EDITORIAL COUNCIL UNITED STATES - MEXICO CHAMBER OF COMMERCE Albert C. Zapanta, President & CEO, Binational Headquarters; Francisco López Espinoza, CEO, Grupo Gráfico Multicolor; Eric Rojo, Vice-President/ Mexico Liaison; Joseph R. Chapa, Vice-President, International Trade Development Centers; Gabriela Kenny, Director of Communications; Cecilia López, Publishing Manager; Jill Martínez, Editor.

PUBLISHING COORDINATORS Executive Director PROMEXE Rafael López Rivera rafa.lopez@multicolorig.com Director of Communications Gabriela Kenny gabriela.kenny@usmcoc.org Publishing Manager Cecilia López ceci.lopez@usmcoc.org

CONCEPT & MAGAZINE DESIGN Editorial Coordinators Cecilia López ceci.lopez@usmcoc.org Jill Martinez jmartinez@irvingonline.com Graphic Designer Luis Alberto Cabrera Villanueva lcabrera@promexe.com

EDITORIAL CONTRIBUTORS Luc Pierre Ringuette Joe Chapa Blanca Berthier Marianna Rossell Pete Garcia Josie Orosco Marcos Wanless

Marlen Marroquin Harold Hoekstra Sergio Ponce Andres Quiala Claudia Vidal Carla Gonzalez Gabriela Kenny

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For advertising inquiries, contact: Rafael López rafa.lopez@multicolorig.com Executive Director PROMEXE Gabriela Kenny gabriela.kenny@usmcoc.org Director of Communications Cecilia López ceci.lopez@usmcoc.org Publishing Manager Cover photo by PEMEX ALLIANCE LA REVISTA DE NEGOCIOS BINACIONAL, Año 10, No. 22, es una publicación cuatrimestal editada por Promotora Mexicana de Ediciones, S.A. de C.V. Oficina Aguascalientes: Av. Convención No. 1005, Fracc. Circunvalación Norte, C.P. 20020. Aguascalientes, Ags. México. Tel: 962 92 81/84. www.promexe. com, cecilopez@mac.com. Editor responsable: José Rafael López Rivera. Reservas de Derechos al Uso Exclusivo No. 04-2013-071518324800-102, ISSN.: En Trámite, ambos otorgados por el Instituto Nacional del Derecho de Autor, Licitud de Título y contenido 16157, otorgado por la Comisión Calificadora de Publicaciones y Revistas Illustradas de la Secretaria de Gobernación. Impresa por Multicolor Gran Formato S.A. de C.V. Tel: 52 (449) 913 37 52. Fax: 52 (449) 913 30 04. Av. José María Chavez No. 3408-A, Ciudad Industrial, C.P. 20290. Aguascalientes, Ags. Distribuidor: Promotora Mexicana de Ediciones, S.A. de C.V. (PROMEXE) este número se terminó de imprimir el dia 20 de Septiembre de 2014 con un tiraje de 3,000 ejemplares. Las opiniones expresadas por los autores no necesariamente reflejan la postura del editor de la publicación. Queda estrictamente prohibida la reproducción total o parcial de los contenidos e imágenes de la publicación sin previa autorización de Promotora Mexicana de Ediciones, S.A. de C.V.

ALLIANCE is a quarterly publication of the United States-Mexico Chamber of Commerce and Promotora Mexicana de Ediciones S.A. de C.V. (PROMEXE), for the binational enterprise sector. Mexico office:Av. Convención No. 1005, Fracc. Circunvalación Norte, C.P. 20020. Aguascalientes, Ags. México. Tel: 962 92 81/84. (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 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.

Editorial W Dear friends,

e have in our hands more information than ever to the extent that it has become challenging to process everything that appeals to us. I often wish I had more time to read all the articles and publications I find of interest! Time is the most valuable of our resources, and for that reason, we work to present you a selection of topics in Alliance Magazine which we are sure you will find useful and support your business endeavors. It is vital to increase our understanding about Mexico’s transcendent reforms. There are enormous opportunities ahead as the country keeps moving toward a brighter future. The energy reform deserves special attention; in these pages you will find a bold article by Steve Molina, Texas member of the Interstate Oil and Gas Commission and board member of the Chamber, in which he explains how Mexico, Canada and the U.S. have the potential to become an energy independent region, and that the North American partnership could become deeper by becoming the new Organization of the Petroleum Exporting Countries (OPEC). Furthermore, we include a brief explanation on how new contracts for oil and gas exploration and production will be framed under the recently approved laws, and the institutions that will oversee the legality of contracts, production and commercialization. You also find insight from Motorola, Inc. on Mexico’s telecommunications law and its impact on the availability of broadband Internet. We invite you to read about Ford Motor Company’s history in Mexico and the U.S. and how the company supports Hispanic entrepreneurs. In an article courtesy of José Zozaya, president of Kansas City Southern de México, you will find useful information about rail transportation, an environmentally-friendly option for freight transportation. Jim MacLellan, director of Trade Development for the Port of Los Angeles, shares his insight on initiatives being developed to improve business relationships between Southern California and Mexico. This issue also features an article by Fred P. Hochberg, chairman and president of the U.S. Export-Import Bank (Ex-Im Bank), detailing how the bank has supported U.S. companies’ exports to Mexico, and the challenges the institution is currently facing. As always, you will also find updates of the activities and events presented by the regional chapters in both countries as well as news from and about our members. The deadline for production of this issue of Alliance Magazine coincided with the inauguration of the First North American Sustainable Economic Development Summit, which occurred on August 26 in Las Colinas-Irving, Texas. It was an outstanding event and we will share with you the details in our next edition. I would like to take the opportunity to invite you to attend the México Business Summit in the beautiful city of Querétaro, October 26-28, 2014, and join us afterwards for our Mexico City Binational Meeting and Buen Vecino Award Gala, October 28-29, 2014. More information available on our website, www.usmcoc.org As always, special thanks to our friends who contributed to this issue, and to our readers for your support. Look forward to meeting again, Sincerely

Albert Zapanta President & CEO

CHAPTER OFFICES

OFICINAS DEL CAPÍTULO

ADVERTORIAL

PUBLIREPORTAJE

TECHNOLOGYTRENDS

TENDENCIAS TECNOLÓGICAS

4 5 7 8 10 12

BINATIONAL EVENT

THE COVER

EVENTO BINACIONAL

ARTÍCULO DE PORTADA New Contracts for Exploration and

Production in Mexico

OPINION OPINIÓN

28 42

BRIEFS BREVES

ADVERTORIAL

PUBLIRREPORTAJE

OF INTEREST DE INTERÉS

CHAPTER ACTIVITIES...

ACTIVIDADES DEL CAPÍTULO...

• Mexico`s Big Deal • Ex-Im Bank

UPDATE

ACTUALIZACIÓN

• Telecomunication • Fiscal

NEW MEMBERS / MEMBER DISCOUNTS

NUEVOS MIEMBROS / MIEMBROS DE DESCUENTO 2

52 54

MEMBER HIGHLIGHTS MIEMBROS DESTACADOS

CHAPTER OFFICES THE AMBASSADOR OF GOOD BUSINESS www.usmcoc.org

Al Zapanta President & CEO zapantaz@usmcoc.org Tel: (703) 752 4751 Fax: (703) 642 1088

Gabriela Kenny Director of Communications gabriela.kenny@usmcoc.org Tel: (703) 752 4751 x 107 Fax: (703) 642 1088

BINATIONAL HEADQUARTERS / OFICINAS GENERALES 6800 Versar Center. Ste. 450 Springfield, VA 22151 Mail to: P.O. Box 14414, Washington, D.C. 20044

Northeast Chapter New York, NY Eduardo Ramos-Gómez President Alejandro Ramos Executive Director 1540 Broadway, Suite 1400 New York, NY. 10036-4086 Tel: (212) 471 4703 Fax: (212) 471 4701 alejandro@usmcocne.org

California Regional Chapter Los Angeles, CA Jim MacLellan President Marlen Marroquin Executive Director 1800 Century Park East Suite 300 Los Angeles, CA 90067 Tel: (310) 598 4188 marlen@usmcocca.org

Valle de México Chapter Mexico City Jose Garcia Torres President Claudia Vidal Executive Director Av. Insurgentes Sur 1605 Torre Mural, Piso 25, Mod. 3 Col. San José Insurgentes Benito Juárez, 03900. México, D.F. Tel: (55) 5662 6103 Fax: (55) 5683 2700 c_vidal@usmcoc.org

Noreste Chapter Monterrey, N.L. Dr. Eric W. Gustafson President Roberto Fuerte Executive Director Av. Fundidora No. 501. Edificio Cintermex P.B. Local 114 Col. Obrera Monterrey, N.L. 64010 Tel: (81) 8191 7800 rfuerte@usmcocmtymx.org rfuerte@gmail.com

Mid-America Chapter Chicago, IL Gery Chico President Blanca Berthier Executive Director Blue Cross Blue Shield Building 300 E. Randolph Dr. 49th floor Chicago, Il 60601 Tel: (312) 729 1355 / (312) 729 1356 Fax: (312) 729 1354 blanca.berthier@usmcoc.org

Southwest Chapter Dallas, TX Vincent Chapa President Josie Orosco Executive Director 901 Main Street, 44th. Floor Dallas, TX 75202 Tel: (214) 651-4300 / (817) 881 0264 Fax: (214) 747 1994 swusmx@netzero.com

Pacífico Chapter Guadalajara, Jal Francisco Plancarte y García Naranjo President Pedro Fernando Linares Executive Director Mar Mediterráneo 1259 Colonia Jardines del Country Guadalajara, Jal. C.P.: 44620 Tel: (33) 36 15 32 35 pedro.linares@usmcoc.org

Puebla Chapter Puebla, Pue. Fernando Treviño President Vidaur Mora Executive Director 31 Poniente No. 4128 2-B Col. Reforma Sur Puebla, Pue. 72160 Tel: (222) 249 8828 Fax: (222) 249 2361 puebla@usmcoc.org www.usmcocpue.org

Mid-Atlantic Chapter Washington, D.C. Vacant Trade Representative 6800 Versar Center, Suite 450 Springfield, VA 22151 Tel: (703) 752 4752 Fax: (703) 642 1088 gabriela.kenny@usmcoc.org

Inter-American Chapter Miami, FL Michael Ronan President Susanna Werner Interim Executive Director 1441 Brickell Ave. Suite 1400 Miami, FL 33131 Tel: (305) 374 7401 Interamerican@usmcoc.org

Guanajuato Chapter León, Gto. Joseph Ramiro Chapa García President Sergio Ponce López Executive Director Blvd. Campestre No. 1215, Int. 12 Col. Panorama León, Gto. 37160 Tel: (477) 779 5670 Fax: (477) 779 5671 sergio.ponce@usmcoc.org www.cplb.org

Aguascalientes Chapter Aguascalientes, Ags. Jaime del Conde Ugarte Presidente Rodolfo Rodríguez Casillas Executive Director Av. Independencia 1602 Col. Fátima Aguascalientes, Ags. Tel.: (449) 914 6863 y (449) 153 3553 www.usmcocags.com.mx

Pacific Northwest Chapter Seattle, WA Luis Morris President 15100 S.E. 38th Street, #728 Bellevue, WA 98006-1765 Tel: (253) 678-7696 email: lmorris@usmcocnw.org www.usmcocnw.org

The Woodlands - Gulf Coast Chapter, The Woodlands, TX Ronda Butler-Harkey President Pete Garcia Executive Director 10077 Grogan’s Mill Road, Ste. 530 The Woodlands, TX 77380 Tel: (713) 854 1577 pete@chambergc.org

Golfo Chapter Veracruz, Ver. Andres Quiala President Jorge Alejandro Vega Executive Director Simon Bolivar no. 705. casi esquina con España. Despacho 3 Colonia Zaragoza C.P. 91910 Veracruz, Ver. México Tel: (229) 937 0598 Fax: (229) 100 3857 naftaforum@gmail.com aquiala@usmcoc.org

Querétaro Chapter Querétaro, Qro. Marcela Soto Executive Director Isas y Asociados Contadores Públicos Rufino Tamayo # 2 Col. Pueblo Nuevo Querétaro, Qro. 76900 Tel: (442) 295 0272 msoto@usmcoc-qc.org.mx

International Trade Development and Assistance Center Joe Chapa Executive Director 207 Mandalay Canal Irving, TX 75039 Tel: (406) 839 1796 jrchapa@usmcoc.org

Joe Chapa Vice-President International Trade Development Centers jrchapa@usmcoc.org Tel: (214) 329 4559 Fax: (703) 642 1088

Michoacan Chapter Morelia, Mich. Nick Ortiz President nick.ortiz@usmcoc.org Lucy Chávez Executive Director usmcocmich2@gmail.com Melo 166-B Morelia Michoacan C.P. 58000 Tel: (443) 353 2927

Aeromexico will offer new flights from United States

BRI

EFS

eromexico will increase its presence in Houston, Miami and Orlando as of November this year.

The airline will serve two daily flights from Houston to Monterrey, with Embraer 145 airplanes configured with 50 passenger seats, which also allow Texans clients to connect with other major cities in Mexico such as Bajio-Leon, Chihuahua, Hermosillo, San Luis Potosi, among others. Customers traveling from Houston may also connect with Aeromexico’s new daily route from Monterrey to Torreon, Mexico and with Tokyo, Japan thanks to the start of its transcontinental flights from Monterrey as of September. In addition, the carrier will operate its second daily flight from Orlando and its fourth daily frequency from Miami to Mexico City, both operated with Boeing 737 aircraft configured with 124 passenger seats - 12 in the Clase Premier cabin. With these frequencies, and the fourth weekly service between Merida, Mexico and Miami that also begins in November, Aeromexico confirms its commitment on providing more and better connectivity options between cities across Mexico and in the United States, promoting the economic, business and tourist development of each of these destinations.

he American Chamber of Commerce of Mexico (AMCHAM) and United Parcel Services (UPS) have joined forces and their portfolio of services. Together they will extend advice and support to small and medium-sized enterprises (SME) which are not only looking for specialized orientation and training throughout the logistics process, but also for those companies that pursue customized solutions for their businesses. Workshops, training and preferential fees to SMEs based in Mexico are part of the benefits this agreement brings to the table - always by means of personalized and direct attention. Most workshops will focus on information about general import and export flows, tips on how to start trading beyond borders, discussions on the importance of learning and handling policies, restrictions to export in different countries and recommendations on services that can help businesses grow. These initiatives’ main purpose is to bring tools and knowledge, giving SMEs the opportunity to focus on what they do best: innovate their business. Being able to access the services the Chamber-UPS partnership offers to them will strengthen them and provide an important competitive advantage.

andler & Travis Trade Advisory Services (STTAS), a leading international customs and trade services provider, has started a very ambitious project to consolidate its presence worldwide, making changes to its customs practice to fully comply with global standards. This project has impacted the firm both internal and externally as it includes restructuring processes to ensure the same standards of consistency, quality and efficiency for every STTAS office across the globe regardless of where the client is located. The initiative was prompted by several contracts the firm entered into with clients who have global operations. The expansion of STTAS will occur simultaneously and run parallel with those agreements. Contributing to the launch of this undertaking was the company executives’ decision to use Sandler & Travis de México as a spearhead for this globalization project. Proof of this is the growth projection by more than 100 percent for 2014. STTAS attributes its continued success to its commitment to a high level of professionalism, strong experience in the automotive and auto parts sector, and its maquila-IMMEX operations. STTAS currently has 12 offices in six countries in North America, South America, Asia and Europe. Clients include some of the largest multinational corporations in the world as well as small to mid-sized importers and exporters. The firm represents and provides services to manufacturers, customs brokers, agents and vendors, retailers and government officials from dozens of different countries.

BRIEFS / BREVES

Working Together to Strengthen Mexican SMEs

Sandler & Travis Continues Its Consolidation as a global firm

BRI

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Improving Outcomes by Reducing Barries to Quality Healthcare

edLingo proudly announces it’s recent collaboration with Methodist Medical Center Dallas. Per the new agreement, MedLingo will provide much needed training for Methodist employees around cultural competency and linguistic abilities. The details of the program will include teaching the Hispanic employees, US cultural competencies and language, as well as, the converse for nonHispanic healthcare professionals with regard to the Hispanic culture and language. With this new initiative, Methodist’s goal is to further train employees concerning cultural differences; ultimately greatly diminishing any cultural biases that may exist in this subset of the organization. Furthermore, this knowledge will serve as an additional tool for the provision of a more comprehensive plan of care for Methodist’s Hispanic population. As the non-Hispanic professionals increase their knowledge bank regarding culture and language; they will be better equipped to educate and execute a more holistic plan of care for their patients.

BRIEFS / BREVES

MedLingo has successfully trained more than 50,000 healthcare employees from various hospitals in Texas, including students from Southern Methodist University, Texas Woman’s University and UTSW Medical Center. Additionally, MedLingo has strategically formed a collaborative growth initiative by aligning with the founder’s alma mater Southern Methodist University (SMU). Thus, providing students with a comprehensive internship including hands on training in locally as well as abroad.

Border Energy Forum XXI October 15-17 in Monterrey

The opportunities presented through Mexico’s recent energy reforms will be the highlight this year. Among the confirmed participants are keynote speakers Leonardo Beltrán Rodríguez, deputy secretary for energy planning and transition at Mexico’s Energy Department, and Francisco Xavier Salazar Díez de Sollano, president of Mexico’s Regulatory Commission of Energy. Alternating each year between Mexico and the United States, the Forum has now met at least once in each of the 10 U.S. and Mexican border states. The goals are straightforward but ambitious: improving the exchange of information, building partnerships, and fostering business opportunities. Participants also discuss best practices for production and consumption of energy in the fast-growing region, forge new partnerships and help each other work together on shared goals of economic development and environmental protection. The basic premise behind starting the Forum was that teamwork would be necessary to meet the energy needs required to fuel regional growth.

the initial group of 50 participants from the U.S. and 50 from Mexico to an annual crowd surpassing 300, usually evenly divided between Americans and Mexicans. The gathering has not only fulfilled the original objective but exceeded those initial goals to become a cornerstone of energy policy and program development for the region. The attendees include representatives from the federal governments of both Mexico and the United States, as well as state and local officials from both sides of the border. There are men and women from the private sector both energy producers and energy consumers, university researchers and members of environmental groups. In addition to bringing together energy experts from both sides of the border, a priority of the Border Energy Forum also has been to provide dialogue among those who are interested in energy as a business and those who see protection of the environment as their charge. The Forum has evolved into a think tank for energy and environmental issues. It provides an opportunity for breaking through the confines of any particular area of expertise by sharing among a broad array of professions, providing exchange between immunologists and natural gas producers and wastewater

treatment engineers and wind-power entrepreneurs and government regulators –the list goes on and on. As the population continues to increase on both sides of the border, as trade between the United States and Mexico continues to grow at an exponential rate, and as industries expand throughout the region, it becomes ever more apparent that environmental problems recognize no international boundaries and neither do economic forces and developments. Over the years, the Forum has explored ways to expand energy markets and how to finance worthwhile energy projects. There has been a steady stream of reports on ambitious projects in progress. Working with the Forum has also provided a vantage point for observing the opening of markets and deregulation, to varying degrees, on both sides of the border. With all projections showing continued growth in population, industry and trade in northern Mexico and the southwestern United States, opportunities lie ahead for significant advances in regional energy trends and patterns. It also can be expected that concerns about national autonomy and energy interdependence will continue to be a focus of discussions.

The Forum was pioneered by the Texas General Land Office, which now works with an organizing committee that includes the Border Environment Cooperation Commission, the North American Development Bank, the Energy Council, the U.S.-Mexico Chamber of Commerce, the U.S-Mexico Cultural and Educational Foundation, and the government of the state of Nuevo León. The Forum attendance has grown from For information about the Border Energy Forum including a preliminary agenda and rates, log on to www.glo.texas.gov/border-energy-forum.

ADVERTORIAL / PUBLIRREPORTAJE

op-level insight into energy issues affecting the entire region of northern Mexico and the American southwest will mark the 21st Annual U.S.-Mexico Border Energy Forum this October in Monterrey, Nuevo León, Mexico.

TECHNOLOGY TRENDS / TENDENCIAS TECNOLOGICAS

exico President Enrique Peña Nieto has strongly embraced international trade and SMEs (small and medium-size enterprises) are now in the spotlight to promote investment, trade, commerce and economic development. ProMéxico recently signed an agreement with the United States-Mexico Chamber of Commerce (USMCOC) to establish an e-commerce platform to significantly advance the revenue potential for Mexico’s SMEs. United States Mexico Market Exchange (UMEXX), a public/private partnership, has been established to implement it under a services agreement with the USMCOC.

As a result of these converging trends, Mexico is in a powerful position. Rising wages in China, long transit times across the Pacific, governmental tax subsidies and private profit efforts will all stimulate commerce and trade investments. E-commerce for consumers and businesses is now a multi-trillion dollar business with double digit growth (16 percent per year), requiring a shift in traditional business practices. In comparison, historically powerful industries such as oil and gas, and pharmaceuticals, are only growing by 7.5 percent and 4.0 percent, respectively. Increasing integration of supply chains in North America will provide benefits for the Mexican economy and modern supply chain capabilities can be a great equalizer for SMEs to compete effectively with large, established companies.

Access to favorable and cost efficient supply chains is critical to win crossborder and international business, where mobilizing the required network of resources to move products or services from suppliers to consumers was traditionally very expensive. In the past, large enterprises were the primary (and often only) economic engines able to purchase and maintain supply chains covering multiple time zones. E-commerce for SMEs enables growth without boundaries, and sustained success through real-time inventory, pick and pack, reverse logistics, and the constant movement of supply to match ever changing shifts in consumer demands. The economic opportunities for Mexico’s SMEs are substantial. Trade in North America has experienced dramatic growth since the signing of NAFTA (North American Free Trade Agreement). Mexico’s Secretary of the Economy has reported that trilateral trade between the NAFTA partners has more than tripled, setting a new historical record of over $1 trillion in 2013. Internationally, Mexico has free trade agreements with 45 countries, which collectively account for seventy percent of world GDP, two-thirds of global imports and a billion consumers. Numerous Mexican domestic policies such as the elimination of over 16,000 administrative regulations and 2,800 needless procedures have further strengthen competitiveness. Sixty-

four percent of industrial goods from non-NAFTA partners have been duty-free since 2013. How can SMEs aggressively promote and sell their products and services? They must adopt the “Connect Once - Connect Everywhere” integration culture to leverage global e-commerce markets. They must uti1lize and leverage modern supply chain assets and understand that they can now do so as effectively as large enterprises. Supply chain providers are combining their logistics services to focus specifically on SMEs, including a recent partnership between RoadOne IntermodalLogistics and E*Fill America—leaders in multi-modal transportation and distribution services with 60 million square feet of warehousing space at over 175 locations throughout North America. SMEs are the backbone of Mexico’s national economy and SME owners have tremendous drive to make a difference for their families, employees, customers, and country. There are approximately four million business units in Mexico, of which 99.8 percent are SMEs generating 52 percent of gross domestic product (GDP) and 72 percent of the employment in the country. SMEs are becoming increasingly more important and, deservedly, can grab a greater share of the wealth even as they help expand the revenues of larger enterprises.

By: Luc Ringuette, CEO of the United States Mexico Market Exchange (UMEXX) andChairman of Iggnition Coorporation and Jay Houlihan, Managing Director, Co-Founder of InnoCal Venture Capital; Managing Director of Harvey Co-Investment Partners and Director of Harvey & Company.

Modern Vision of Fight Against Financial Crimes in Mexico

Association of Certified Financial Crime Specialists

he current administration of the Mexican government led by President Enrique Peña Nieto, has introduced several political reforms that will change the direction of the country’s economic development over the next years. Among the reforms are some that are designed to curb financial crimes. The expeditiousness with which Mexico is addressing corruption in the financial services and fiscal areas demonstrates the urgency necessary to ensure Mexico complies with international standards to fight financial crimes in their various forms, as well as increase tax revenue, and combat tax fraudand money laundering.

ADVERTORIAL / PUBLIRREPORTAJE

On July 17, 2013, the Mexican government implemented the Federal Law for Prevention and Identification of Operations Involving Resources Derived from Illicit Sources. With this action, the attorney general’s office and the Mexican tax agency (SAT) began a new effort to carefully monitor suspicious operations through its specialized units.

One year later, on July 16, 2014, the Mexico City Chapter of the U.S.-Mexico Chamber of Commerce hosted a seminar for Barbri, Inc., and its subsidiary, Association of Certified Financial Crime Specialists (ACFCS) at the Bankers Club in Mexico City, attended by representatives of many financial institutions. ACFCS is a worldwide organization of private and public sector professionals who work in diverse financial crime disciplines, including anti-money

laundering, Foreign Account Tax Compliance Act -tax evasion (FATCA), Foreign Corrupt Practices Actcorruption (FCPA) fraud, data analytics and security, compliance, regulation and enforcement. ACFCS awards the Certified Financial Crime Specialist (CFCS) certification to qualified candidates who pass a proctored examination offered at authorized testing centers around the world. Professionals in the financial crime field from more than 65 nations have already obtained the CFCS certification. ACFCS offers its members and the worldwide financial anti-crime community an array of information and training products and services, as well as a connection to the global community of financial crime specialists with whom members may network and exchange ideas and solutions to common challenges: • CFCS certification, the only certification that encompasses all fields of financial crime • Specialized information, in-depth analysis and breaking news on crucial issues in financial crime • Live and virtual training, including seminars, webinars and the ACFCS International Financial Crime Conference and Exhibition • A forum for networking, career-building and professional development • A diverse, international community for the exchange of knowledge, ideas and best practices

ACFCS Foreign Account Tax Compliance Act training provides comprehensive guidance on the legal, compliance and enforcement aspects of one of the most significant developments in the financial crime field in the past decades. While it began as a U.S. law aimed at curbing offshore tax evasion by U.S. residents, FATCA imposes compliance and reporting requirements on a wide range of financial institutions globally. The course includes a thorough examination of FATCAâ&#x20AC;&#x2122;s key provisions, vocabulary, key roles and responsibilities for FATCA compliance, FATCA intergovernmental agreements and international framework and, most importantly, crucial details of FATCA compliance for both U.S. and non-U.S. institutions. The course features over five hours of engaging online training, review quizzes and awards six Certified Financial Crime Specialist (CFCS), continuing professional education (CPE) and continuing legal education (CLE) credits.

FCPA Compliance Training for U.S. and Non-U.S. Companies ACFCS brings the global United States and nonU.S. corporate, legal and government communities comprehensive, plain-English online training on the U.S. Foreign Corrupt Practices Act. The FCPA presents a growing danger to all U.S. companies that do business overseas and non-U.S. companies that have operations in the United States and other countries. In recent years, the U.S. Department of Justice and the Securities and Exchange Commission have stepped up enforcement efforts against these companies and their employees. The FCPA is the principal U.S. law against foreign bribery and is a powerful and effective weapon that can have long lasting effects for those that face government actions. No company that does international business can afford to be without this cutting-edge ACFCS training developed by experts in content and instructional design. It explains the key FCPA provisions and guides you on developing effective compliance programs to prevent violations and avoid problems.

Federico Ortega Gamez, Campeche Representative in Mexico City; Jose Garcia Torres, president, USMCOC Mexico, City; Stephen Fredette, president and CEO, Barbri Corporation; Arturo Ortiz Hidalgo, Bursametrica; Dan Schoepf, executive vice president, Global Sales for Barbri; Jose NiĂąo Campos, advisor to Barbri Corporation.

ADVERTORIAL / PUBLIRREPORTAJE

What does ACFCS offer? ACFCS Foreign Account Tax Compliance Act (FATCA) Online Training

Rail:

An Environmentally Friendly Mode to Move Freight

OF INTEREST / DE INTERÉS

ransportation is key to your supply chain and to your company’s bottom line. Rail is one of the most efficient and economical ways to move freight and one of the most environmentally friendly ways to do so, as well. Replacing the use of many individual trucks for moving freight, especially finished automobiles, with trains able to transport the equivalent of many truck loads of freight, fuel consumption is reduced as well as environmental emissions.

Increased use of rail relieves traffic congestion by reducing the number of trucks involved to move freight, reducing idling, improving safety and efficiency and reducing emissions. The U.S. EPA estimates that each ton of freight moved per mile by rail compared to trucks on the roadways, reduces greenhouse emissions by two-thirds. A train can move one ton of freight for approximately 480 miles using only one gallon of fuel vs. a mere 59 miles per gallon for a truck. Since 1980, while freight volume by rail has nearly doubled, North American railroads are moving this increased volume with virtually the

same amount of fuel today as they were in 1980. This improved efficiency for rail transportation of freight has been achieved with new investments, technological innovations and improved operating practices, including: • Increasing the amount of freight in an average rail car • Investing in thousands of new, more efficient locomotives and retiring old ones • Installing new idling-reduction technologies such as stop-start systems • Developing and implementing highly advanced computer software systems • Expanding the use of distributed power • Improving rail lubrication to reduce friction at the wheel-rail interface Freight locomotives in North America

have changed dramatically in recent years making them more efficient and safer than ever before. These investments have resulted in an industry that is “lean” and “green” with the benefits that cascade well beyond the railroad industry. Kansas City Southern de Mexico (KCSM) provides our customers the many advantages of this mode of transportation while helping grow Mexico’s economy and creating new jobs for Mexico. We estimate that last year, counting only thirteen companies whose choice to use rail over alternative transportation for their shipping needs, equated to a reduction of nearly 430,000 tons of greenhouse gases in just one year’s time. KCSM is truly committed to integrating the needs of our customers with what we can do for them to benefit both their bottom line and the environment. KCSM is a partner who will work with you to achieve your logistics needs and help reduce emissions improving the environment. That’s a partnership that will pay off for everyone.

By: Jose Zozaya, president, Kansas City Southern de México

Mexico and Southern California Major Trading Partners

exico and California are major trading partners. Mexico is also a critical partner for the Los Angeles economy as the city’s second-largest export market and one of Los Angeles County’s largest sources of foreign investment. According to the Brookings 2013 Metro North America report, total trade between metro Los Angeles and Mexico was $14.91 billion in 2010. However, we believe that these business relationships can be expanded to a considerably greater degree. Following are four recently proposed initiatives which may have a beneficial influence on our mutual economies. These include: Initiative #1: Border Efficiency

• The introduction of advanced technology is one area that promises expedited clearance for safe cargo and safe travelers while improving security. • Another promising area for cooperation is the publicprivate partnership to develop cargo clearance capacity but this initiative requires additional government and financing support.

transport between ports and certain product groups would assist with bilateral business development between certain areas of the west coast of Mexico and southern California. Potential efficiencies would improve the opportunities for businesses and would open new areas of bilateral trade. Initiative #3: Cruise and Tourism A key economic multiplier would be the rebuilding of our cruise and tourism travel. Restoring confidence in the tourism sector would assist with restoring the cruise business between southern California and west coast Mexican ports and resorts.

Initiative #2: West Coast Port Cargo Development

Initiative #4: Air Passenger Service

Over 95 percent of cargo between Mexico and California is currently handled by road and rail transport modes. Working together to research the economics of maritime

There are several developments underway to increase air service between Los Angeles World Airports and destinations in Mexico.

Los Angeles Mayor Eric Garcetti’s recent trade mission March 3-5 was a positive step forward in building increased economic ties between Mexico and southern California. This was also his first trade mission as mayor. The delegation included business executives as well as representatives from the Port of Los Angeles, Los Angeles World Airports and the Los Angeles Tourism and Convention Board. Garcetti met with the mayor of Mexico City and the U.S. ambassador to Mexico, seeking opportunities for crossborder sharing of technology and development. He signed

the Los Angeles-Mexico City International Cities Economic Alliance, an agreement with Mexico City Mayor Miguel Angel Mancera Espinosa to expand shared economic goals, investments and trade. Garcetti also met with 200 Mexican industrialists in a private meeting to advocate for the advantages of investing in the Los Angeles region. We stand at a positive turning point that promises a higher level of bilateral economic activity between southern California and Mexico. Our mutual business relationships are symbiotic. They have created a firm foundation upon which to now build a renewed economic prosperity. By Jim MacLellan / Director of Trade and Development / Port of Los Angeles

OF INTEREST / DE INTERÉS

Increase cross-border efficiencies for safe goods and safe travelers along the California-Mexico border. The Ports of Los Angeles and Long Beach serve Baja for both imports and exports; however, it has been estimated that several billion dollars of economic activity in the southern California-Baja region are being lost due to border delays.

New Communications Laws Will Enable Innovative Technology for Public Safety in Mexico

ecent reforms to communications laws will enable Mexico’s public safety agencies to utilize innovative technology that will help them become more efficient and effective as they serve and protect communities throughout the nation. Mexico’s Congress passed constitutional reform in 2013, led by President Enrique Peña Nieto, and new laws affecting communications services were approved in July of this year. Some of the opportunities the updated laws will provide include expanding the availability of high-speed Internet (also known as broadband), and establishing a wireless broadband network for police, fire and other emergency services.

OF INTEREST / DE INTERÉS

Thanks to the new laws, first responders in Mexico will soon be able to choose from a wide range of solutions that use text, photos, video and other technology to deliver realtime information on a network that has the capacity and bandwidth for such data-intensive applications. Providing a network that ensures priority to police and firefighters can be a life-saving feature when there is an emergency or widespread event. During these incidents, voice and data traffic are often delayed because there are too many users on a network at the same time.

know what to expect when they get there. When the firefighters arrive, personnel from several departments share the information on broadband-enabled devices which promotes better collaboration for accomplishing their mission.

Mexico, Motorola Solutions has been a trusted partner and provider of missioncritical communications because of the superior performance, features, and reliability of its products. Today, Motorola continues to be at the forefront of new innovations and capabilities A report by CITEL, the Inter-American due to its ongoing investment and Telecommunication Commission and commitment in the development of an advisory body for the Organization state-of-the-art equipment. of American States, recommended that countries across North, Central, and Motorola looks forward to sharing its South America and the Caribbean use global experiences and best practices the same swath of radio frequencies for with public safety in Mexico as public protection and disaster relief. they begin to move forward with The harmonization could increase broadband-enabled solutions. Through economies of scale, particularly the integration of interoperable for equipment availability and platforms that manage critical data, interoperability, and lead to improved Mexican authorities will soon be able spectrum management, planning and to align multiple efforts and develop coordination along borders. increasingly intelligent strategies to help achieve their main objective: Throughout its 85-year history, ensuring the safety and well-being of including 50 years of operations in their fellow citizens.

Wireless broadband connectivity helps enhance first responder operations in many ways. For example, command centers can send schematics and blueprints to firefighters on their way to a burning building. That kind of timely data helps identify areas of the structure that may be dangerous while battling a fire. Meanwhile, videos and photos sent by people at the scene on their smartphones let the firefighters Luis Lara, director of government affairs for Motorola Solutions in Mexico.

Financing through the Mexican Stock Exchange (BMV)

here are various products on the Mexican Stock Exchange (“BMV”) to finance the growth of your company. Stock market financing through the issuance of debt on the BMV is now a reality for medium-sized companies. On the stock market, we have agile and flexible instruments that adapt to the financing needs of the companies, particularly stock exchange certificates. The main feature of stock exchange certificates is their operational flexibility of structures based on a placement program that can be exercised in one or more issues. Therefore, companies can define the timeframe most appropriate for them to obtain the resources and stipulate the characteristics of each issue, which do not necessarily have to be the same, as well as establish the amount, term

and the general payment and rate conditions. There is also financing via the capital markets using shares. Capital financing through the issuance and public offer of shares is the most competitive formula to obtain long-term resources for companies. When a company wishes to gather resources without increasing its liabilities and obtain fresh capital, the best alternative is to issue shares which will increase its capital stock based on its growth and expansion strategies. The stock market plays a very important role in the growth of the country’s economy by serving as the focal point between companies and investors in a more competitive business environment in which growth and innovation have become some of the fundamental objectives of companies. Therefore, companies can find favorable sources of financing on the Mexican Stock Exchange.

HOW CAN I FINANCE THE GROWTH OF MY COMPANY ? CAPITAL

DEBT BENEFITS * * * * * * * * * *

* Increasing the value of your Company * Strengthening the Financial Structure * Granting Financial Recognition and Quality Standards * Improving International Image and Projection

Capital for expancion and development Generate value for the company Increasec borrowing capacity Capitalization of business opportunities Develompent of investment projects Institutional Management Security and transparency Image and prejection before the authorities, creditos and customers. Institutionalization of the company for its long-term presence.

REQUIREMENTS * SHARE ISSUE REQUIREMENTS: 1. Operating history: 3 years. 2. Stockholder´s equity: Amount equivalent to 20,000.000 UDIS Public Limited Companies (SAB))/ 15,000.000 UDIS (Investtment Promotion Companies (SAPIB)).

OF INTEREST / DE INTERÉS

4. The percentage of the capital stock distributed among the general investing public: 15% (SAB)/ 12% (SAPIB). 5. Number of investors: 200 (SAB) / 20 (SAPIB). 6. Financial Statements Audited in accordance with the International Financial Reporting Standards. * SHARE MAINTENANCE REQUIREMENTS: * Minimun 12% of the capital stock placed among the general investing public. * A minimum of 100 shareholders. * Follow-up on Analysis.

* SHARE ISSUE REQUIREMENTS: 1. Income and positive average EBITDAS for the past three years. 2. Implementation of Corporate Governance practices: * A legally consituded Board of Directors that meets at least four times per year. * Have a Support Committee. * Independent membership. * Formal administrative and operating processes. 3. Financial Statements Audited in accordance with the International Financial Reporting Standards.

To finance growth, companies must bear some expenses such as the cost of registration with the National Banking and Securities Commission, the registration fee on the Mexican Stock Exchange, independent advisors such as lawyers and accountants, and the lead broker’s commission, mainly. These costs depend on a variety of factors depending on the type of issue the company intends to conduct. The BMV has a facilities program in which registration and maintenance fees are waivefor new companies entering the market. The Mexican Stock Exchange’s (BMV) Facilities Program includes: * The Mexican Stock Exchange (BMV) will cancel the registration and maintenance fees for new domestic issuer companies (for companies with stockholders’ equity of less than $500 million Mexican Pesos). * Support in promotional events. * Access to information systems in real time. * Support services for the performance of obligations in the market. The BMV, as part of its commitment to provide better services, has established response times to process the new debt and capital securities listings that brokers and/or issuers enter into the system. Likewise, it will send observations on the times established pursuant to the table below, as long as the information submitted is complete and complies with the stipulations of the existing provisions. This is in order to ensure that both brokers’ and issuers’ securities listings applications on the BMV are approved correctly and on time. Below is a list of the different means of financing and their respective response times:

TIME IN DAYS FIRST SENDING RESENDING

SHARE AND ORDINARY SHARE CERTIFICATES

COMERCIAL PAPER

STOCK EXCHANGE CERTIFICATES

STOCK EXCHANGE CERTIFICATES THROUGH TRUSTS

GOVERNMENT STOCK EXCHANGE CERTIFICATES

SHORT -TERM STOCK EXCHANGE CERTIFICATES

For further information, please visit our Website www.bmv.com.mx .

BINATIONAL EVENT / EVENTO BINACIONAL

TYPE OF INSTRUMENT

Binational Board of Directors Meeting, Annual Conference & Good Neighbor Awards Gala Washington, DC, May 14-15, 2014

he theme of the 2014 Binational Board of Directors Meeting and Annual Conference was â&#x20AC;&#x153;North American Sustainable Economic Development,â&#x20AC;? a timely topic that provided for interesting and productive presentations and discussions. As with the binational conference that is held in Mexico during the last quarter of each year, this annual mid-May event brings together chamber members, board members and distinguished guests from the private and public sectors from both the U.S. and Mexico. Again this year, the highlight of the two-day conference was the gala held at the Organization of American States where individuals who have made significant contributions to U.S.-Mexico relations are presented the highlyregarded awards. On this occasion, the Good Neighbor Inspirational Award was introduced for the first time, and

Alfonso Garcia Cacho

presented to outstanding Paralympics athletes from each country. Details about this important and fun event are mentioned below. A welcome reception was held the first evening at the Jones Day Office Building in the Capitol Hill area, a site which was also used for the board of directors meeting and the conference the following day. At the reception, Alfonso Garcia Cacho, executive

director of the Mexico Cumbre de Negocios (Mexico Business Summit), gave a brief presentation on their upcoming event to be held in Queretaro in October, 2014. Garcia Cacho invited the Chamber and its members to participate. The reception attendees enjoyed a relaxing evening where they were able to mingle and network at a beautiful site with a spectacular view of the Capitol Building. Group photos and selfies in a relaxed ambiance were the order of the day.

BINATIONAL EVENT / EVENTO BINACIONAL

Energy Development & Sustainability

Once the early morning board meeting was adjourned, the conference began in earnest. The first panel addressed Energy Development & Sustainability with a complement of four private sector participants that included Stephen Molina of Dentons who moderated the panel, Soll Sussman of the United StatesMexico Border Energy Forum, Alberto de la Parra of Jones Day, and Erika Benson of Greenberg Traurig, LLP. The presentations were varied and touched on a number of topics including the impending Mexico energy reform, the development of energy use in both countries, the respective electric grids and the development of renewable energy sources. The secondary laws of the Mexican energy reform have since been approved and signed by the President of Mexico (Aug. 11, 2014). From left to right: Stephen Molina, Erika Benson, Alberto de la Parra and Soll Sussman.

Left to right: Ana Hinojosa, Alan Bersin and Col. Eric Rojo.

Alan Bersin, assistant secretary of International Affairs and chief diplomatic officer for the United States Department of Homeland Security, anchored the presentations of this panel giving his perspective on facilitation at the border, highlighting some of the projects and the potential for public-private partnerships. Ana Hinojosa, deputy assistant commissioner for the Office of International Affairs, United States Department of Homeland Security, spoke about the positive developments in border facilitation and the recent changes in infrastructure which are helping in this regard.

demands but to provide better and more secure services to the citizens on both sides of the border. Trade & Investment The panel that addressed Trade & Investment showcased distinguished speakers from the public sector including John Melle, assistant United States trade representative for the Western Hemisphere; Scott Schloegel, senior vice president for Congressional Affairs for the ExportImport Bank of the United States; Kenneth Smith, Ministry of Economy

AttachĂŠ, Embassy of Mexico in the United States. Smithâ&#x20AC;&#x2122;s presentation had some compelling statistics on the size and dramatic growth of the Mexican economy, as well as the impact and magnitude of the increase in bilateral trade with the U.S. over the last 20 years. He also commented on the split by state in the U.S., of trade with Mexico; he displayed many relevant charts chock full of statistics that present both a successful and a promising trade relationship between the two countries.

Col. Eric Rojo (U.S. Army, ret.), an independent security consultant, made somewhat more pragmatic remarks related to border facilitation and commented on existing infrastructure limitations and some of the challenges that remain to be addressed in order to keep up with the growing demands. He concluded that, although much has been done to accommodate the tremendous increase in traffic flow through the border, more is required in order to not only keep up with the Left to right: Kenneth Smith, Scott Schloegel and John Melle.

BINATIONAL EVENT / EVENTO BINACIONAL

Transportation, Infrastructure Border-Facilitation

Export-Import Bank of the United States The keynote speaker at the conference luncheon held at the Liaison Capitol Hill Hotel was Fred Hochberg, chairman and president of the Export-Import Bank of the United States. This was a timely event, since the ExIm Bank’s charter expires September 30, 2014, and Congress is currently debating the issue of reauthorization. While the business community appears to be overwhelmingly in favor of reauthorizing it—especially those involved in international trade— the reauthorization process has evidently encountered more resistance in Congress this year than in previous biannual reviews. The U.S.-Mexico Chamber of Commerce continues to work to support the ExIm Bank’s reauthorization.

presented to American Science and Engineering (AS&E), and accepted by Charles Dougherty, president and CEO of AS&E.

Albert Zapanta and Fred Hochberg.

diplomatic officer for the United States Department of Homeland Security. In the private sector, Grupo Bimbo of Mexico was recognized, and the award was accepted by Raul Arguelles, corporate director for Human Resources and Personnel at Grupo Bimbo. For the U.S., the private sector award was

Perhaps the highlight of the evening was the presentation of the Inspirational Awards which were presented to Mallory Weggemann, American Paralympics swimmer, and Arly Velasquez, Mexican Paralympics Alpine skier. Brief videos were shown of the two athletes in action demonstrating their courage in overcoming their disabilities. In their acceptance speeches, both athletes were humble and expressed their thanks and appreciation with words that were inspirational to all attendees.

Good Neighbor Awards Gala Albert Zapanta, USMCOC president and CEO, took to the stage and was joined by Alfonso Garcia-Cacho, vice chairman of USMCOC in Mexico, to present the 2014 Good Neighbor Awards. The public sector award was presented to Mexico’s Secretary of Foreign Affairs, Jose Antonio Meade-Kuribreña and accepted on his behalf by Carlos Perez Verdía, Chief of Staff (Coordinador General de Asesores) in the Ministry of Foreign Affairs. For the U.S., the public sector award was presented to Alan Bersin, assistant secretary of International Affairs and chief

BINATIONAL EVENT / EVENTO BINACIONAL

Albert Zapanta, Arly Velasquez and Mallory Weggemann.

Remarks by Carlos Perez Verdia, chief of staff, Ministry of Foreign Affairs, accepts the Good Neighbor Award on behalf of Mexico’s secretary of Foreign Affairs, Jose Antonio Meade-Kuribreña.

Albert Zapanta; Raul Arguelles, corporate director for Human Resources and Personnel at Grupo Bimbo; and Alfonso Garcia Cacho.

Al Zapanta and Alfonso Garcia Cacho present the Good Neighbor Award to Alan Besin center, assistant secretary of International Affairs and chief diplomatic officer for the United States Department of Homeland Security.

Charles Dougherty, president and CEO of AS&E recieving the Good Neighbor Award from Albert Zapanta and Alfonso Garcia Cacho.

BINATIONAL EVENT / EVENTO BINACIONAL

New Contracts for Exploration and Production in Mexico

THE COVER / ARTĂ?CULO DE PORTADA

By Sergio Guaso, Vice President for Business Development, Pemex E&P

he Mexico energy reform has hit yet a new milestone. With oil and gas production acceleration as the central objective, terms have been set for the various fiscal processes that will be utilized for the exploration, development and production of reserves: Production sharing, profit sharing, licenses and services contracts. This achievement will add a further level of clarity to the institutional organization of the energy sector in Mexico, the different organizations that will form part of it and the roles that each one will play. The New Institutional Organization for Exploration and Production

The Ministry of Energy will adopt the crucial role of selecting which blocks will be assigned to PEMEX and which will be available for tender by other exploration and production (E&P) companies. The Ministry will also develop the contract terms and guidelines.

The National Commission for Hydrocarbons (CNH, Comisión Nacional de Hidrocarburos) will control and administrate all E&P contracts. The CNH will also ensure that all geologic information of Mexico is properly managed.

Although not necessarily obvious to those who are not currently involved in energy projects in Mexico, the Ministry of Treasury is the entity that regulates fiscal terms for new contracts and defines the rules for petroleum income and taxes.

The newly formed Petroleum Fund will ensure that funding and monetary transactions are carried out as per contract agreements.

The Mexican government will establish a new company with the mandate to trade and sell hydrocarbons, as well as sell service contracts.

CENAGAS (National Center for Natural Gas Control) will administer, manage and operate the national system of natural gas infrastructure around the country and the new National Energy Control Center (CENACE) will have operational control of the national electricity system and market, and ensure open access to the national network of transmission and distribution access

HSE (Health, Safety and Environment) Agency will regulate and supervise health, safety and environmental matters as well as manage waste control for the industry.

The essence of Mexico’s energy reform is to permit other exploration and production companies to participate in a mutually advantageous model to increase production and reserves. The companies will be able to participate under the new arrangement in all sectors such as upstream exploration and production, midstream, downstream refining, and marketing of products.

THE COVER / ARTÍCULO DE PORTADA

As the implementation of this new program continues to become more tangible, seven different organizations will take on critical roles ensuring that the objective of production growth is achieved. Each one will take on tasks that are relevant to the precise needs of Mexico’s oil and gas sector and its need for production increase; these organizations are:

PEMEX will also be open to engage in joint ventures with other companies for the exploration and production of resources. Moving to Different Contract Types to Optimize Fiscal Regimes Under the current system, PEMEX is an assignee (by concession) subject to excessive planning or operationalforecasting control. Under the new fiscal rules, PEMEX will be a contractor under an operational system based on performance and results. The contracts migration to this new fiscal structure will take place in the next few months. The New E&P Workflow for Upstream Contracts The new reform will follow a contractual and operational workflow which is comprised of six main steps as follows: • Block Assignment: The Ministry of Energy will assign blocks based on technical advise from the CNH (National Commission for Hydrocarbons). • Contracting Guidelines: The Ministry of Energy will establish each contract´s terms and the Ministry of Treasury will establish its fiscal terms. • Bid and Award: The CNH will supervise bidding, award and data rooms.

THE COVER / ARTÍCULO DE PORTADA

• Contract Administration: The CNH will supervise contract execution.

service contracts to E&P companies to execute part or all of the scope. 2 Government grants PEMEX a concession and PEMEX creates a joint venture with an E&P (exploration and production) company through bidding. This will require a migration of contract from concession to contract.

A similar situation applies to the effective royalty rate which is between 67 percent and 71 percent ranking highest in the world. This will be modified to approximately a 14 percent rate. Contracts and Concessions

3 Government awards PEMEX a contract and PEMEX creates a joint venture with one or more oil and gas companies. 4 Government awards an E&P contract to a consortium of E&P companies where PEMEX can be one of the members. 5 Government awards an E&P contract to a private sector oil and gas company. In this case, PEMEX must be a 30 percent partner in the project. Technological transfer will be a contractual obligation and these types of projects could be promoted by public financial vehicles. 6 For contracts awarded in transboundary areas, PEMEX will be a 20 percent partner. In this way, Mexico establishes a method to execute E&P contracts in the three major areas of joint exploration and production development as compared to other countries around the world.Mexico will adopt these three major ones: a) Concessions and licenses

• State’s Trader: will administer profit sharing and service contracts; O&G company: production sharing and license contracts.

b) Production sharing contracts and profit sharing contracts

• Payments: The Petroleum Fund receives income and makes payments according to contracts.

International Benchmark of PEMEX’s Fiscal System

c) Services

There will be different models for concession and associations for PEMEX:

When comparing the top 24 petroleum countries by government take of hydrocarbon revenues, Mexico ranks the highest with 95 percent. This is, with Russia, India and Venezuela all falling under 90 percent.

1 Government grants PEMEX a concession and PEMEX grants

With the future contracts coming into effect that will be open to other

Concession and Association Models

companies, the government take will be in the order of 65 percent to 75 percent, bringing Mexico close to the U.S.

Concessions, which can only be awarded to PEMEX, will see an effective royalty rate of 62-70 percent, a total government take of up to 95 percent, and only PEMEX being able to own production and disclose reserves. For the other types of contracts (production sharing, profit sharing, and licenses), they will see an effective royalty rate of 14 percent and a total government take of up to 75 percent. The oil companies will be able to declare production ownership for production sharing contracts and licenses, as well as recognize reserves, based on their share from the contract. An important aspect of the new system is that current contracting models will need to be migrated to the new system. According to the Ley de Ingresos sobre Hidrocarburos (LISH) tax practices, these will be migrated to international standards, including taxing based on profits. New Fiscal Systems For the new fiscal systems, the government’s percentage and taxes will be based on profits and a costrecuperation formula. Production sharing, profit sharing and license contracts have been structured thus: • Royalty (14 percent for prices of 100 dollars per barrel) • Cost cap (fixed percentage per contract) • Government participation (biding variable) • Corporative income tax (30 percent of profits)

by PEMEX THE COVER / ARTÍCULO DEPhotos PORTADA

Hydrocarbon Ownership and Reserves Disclosure An important aspect of project involvement in Mexico for other oil companies is their ability to disclose hydrocarbon ownership and reserves. As it is well known, these parameters most of the time drive corporate valuations and stock process. Ownership of production will depend on the contract stipulations as follows: • In production services and profit sharing contracts, production will be owned by the government. • In production sharing agreements, the ownership of the hydrocarbon will be shared at a pre-agreed proportion or ratio and in license contracts; the licensee company will own the hydrocarbon after pre-agreed payments are made to the government. Ownership of reserves belongs to • the nation although companies may disclose expected results. In accordance with SEC rules, economic interest from production services and profit sharing contacts can be informed, while with license and production sharing contracts the volumes can be recognized. All cases must indicate that reserves belong to the nation of Mexico. Implications of the Reform for PEMEX

THE COVER / ARTÍCULO DE PORTADA

The main implication for PEMEX with the new energy reform is its transformation from state oil monopoly into a productive state company. This must happen within the first months of 2015. Key actions that will take place are:

essential balance in case of service, production sharing and profit sharing contracts when there are several oil and gas companies involved. Assets Are Transferred to the Government • PEMEX is no longer responsible for gas pipelines and infrastructure or contracts will be transferred to the Centro Nacional de Control de Gas Natural. • The new Centro Nacional de Información de Hidrocarburos (CNIH) will keep all geologic data (maps, seismic, cores, etc.), operational and infrastructure data (production, maintenance, etc.), plans, among other information. The CNIH may acquire and process seismic data. Key Elements of the Energy Reform • Regulation and new contracts: Should follow the guidelines set by in the legislation and not over-regulate to ensure effective implementation and maximum benefit of the Reform.

Round Zero On March 21, 2014, PEMEX formalized its request for field assignments. It requested 34,800 million barrels of crude equivalent (MMbboe) in prospect resources, representing 31 percent of the country’s total, and 20,589 million barrels of 2P crude reserves equivalent, or 83 percent of the total 2P reserves. SENER Resolution on Aug 13, 2014: • To assign PEMEX a total area close to 90,000 square kilometers. • 20,589 MMbboe in 2P reserves, equal to 100 percent of the reserves requested by PEMEX. • 22,126 MMbboe in prospect resources which is equal to 67 percent of the resources requested by PEMEX. PEMEX’s Program for 2014-2015 Pemex’s migration joint ventures be implemented in two phases: Migration of 22 CIEPS/COPFS to CEE:

• Organization of institutions: New and existing institutions should have:

A) Migration of first group: eleven CIEP/COPF: F eb 2015

- Appropriate processes - Knowledgeable people for the job - Accountability mechanisms

B) Migration of second group: eleven CIEP/COPF: O ct. 2015

• PEMEX. Should take advantage of the opportunities of the reform to: - Modernize fiscal systems - Modernize joint ventures in Mexico and abroad - Reorganize - Deregulate

Joint ventures or Migration of Pemex Concessions (Asignaciones) to CEE: A) Migration of six land mature blocks to contracts: Jun 2015 B) Migration of four blocks (heavy oils and DW) to contracts: Dec. 2015

• A new board of directors will be established • A new organization will be implemented • New accountability rules will be enforced Marketing A hydrocarbon marketing agency will be placed apart from PEMEX: an

Areas granted to PEMEX Source: Sener

THE COVER / ARTÍCULO DE PORTADA

“Latin America Meets Broadway”

“Mexico as a Global Player”: foreign affairs event

Mexico as a Global Player: Foreign Affairs

s part of the collaboration of the U.S.-Mexico Chamber of Commerce with foreign affairs, the Chapter was a supporting organization for the May 15 conference, “Mexico as a Global Player.”

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

Among the speakers were José Antonio Meade Kuribreña, secretary of foreign affairs (SRE), Mexico; Jaime Zabludovsky, president, Mexican Council on International Relations (Comexi); Shannon O'Neil, senior fellow for Latin American Studies, Council on foreign relations; Sergio M. Alcocer, undersecretary for North America, Ministry of foreign affairs,

Mexico; Luis Robles Miajas, board chairman, BBVA Bancomer; and Francisco Nicolás González Díaz, general director, ProMéxico. North America: Economic Business Relations

and

This event, held on May 22, featured opening remarks by the consul generals of Canada and Mexico and a panel of experts. Comments and discussion focused on the U.S.-Canada-Mexico economic relationship, the future of NAFTA, new trade agreements such as the TPP (TransPacific Partnership), and the resurgence of manufacturing in North America. Latin America Meets Broadway On June 2, USMCOCNE hosted an event

that instructed guests about how to produce musicals, plays etc. in Mexico and Latin America. Discussed were trends, experiences, challenges and business opportunities regarding the exporting and importing of Broadway shows to and from Latin America. Presenters analyzed cross-border coproductions between New York and Latin America, project financing, local support and legal and tax issues. Through this event, the Chapter created a networking environment for business professionals to meet each other in an effort to bridge gaps between New York and Latin American artists and producers. The law firm Sheppard, Mullin, Richter & Hampton, LLP, hosted the event at their Rockefeller Center location.

North America: Economic and Business Relations event

Mid-America Chapter. Chicago, IL

North American Trade Corridor Conference

he Chicago chapter hosted a conference on the North American Trade Corridor on May 8. The event was attended by 100 people and focused on regional trade and logistics integration, challenges and opportunities. Frank Conde, director of communications of NASCO (North American Strategy for Competitiveness) gave a presentation entitled Past Present and Future: A Look at North American Supply Chain, and provided a review of NAFTA from its inception to its present successes in regional trade and development. Conde’s comments were followed by a panel of experts on the topic of trade, Corridors of Trade: NAFTA in the 3rd Decade, moderated by Chris Gutierrez, president of Kansas City Smart Port, Inc. Panelists were Robert C. Bonner, Gibson, Dunn & Crutcher, LLP; Adam Hill, Scarborough International; and Owen Zidar, Kansas City Southern.

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

A second panel of authorities discussed

the competitive advantage offered by NAFTA’s supply chain. Moderated by Alex Garza, general manager at C.H.Robinson, the panel members were Jeffrey LeClair, Caterpillar Inc; Dave Howland, APL Logistics; Thomas Waskiewicz, Ingredion Incorporated; and Rick Richards, CalArk. The conference was a very thorough presentation on the regional trade history, developments, challenges and future of the NAFTA countries. 2014 Double Eagle Awards Dinner Honoring Ford Motor Company and Secretary of Economy of Mexico Ildefonso Guajardo On June 4, 2014, the Chapter celebrated its annual Double Eagle Awards Dinner, an event that recognizes the achievements of both a company and a public official for their efforts to enhance, improve and foster good business relations between both countries. This year the award for Double Eagle Awards were presented to Ford

Motor Company and to Secretary of Economy Ildefonso Guahardo for their exceptional contributions. David Mondragon, director of sales for Ford’s North America Operations, accepted the award on behalf of the company. He commented on the importance of Mexico as a business partner for the company, and also talked about the regional integration the industry has undergone in the past years. Guajardo’s award was accepted by Kenneth Smith, minister for economic affairs of the Mexican Embassy in Washington, D.C. His remarks concentrated on the economic integration of the two countries and the importance of working toward a regional partnership for prosperity. The event was attended by more than 200 individuals including representatives from some of Chicago’s most important companies. This year, as always, the Double Eagle Awards Dinner proved to be one of the most anticipated events related to Mexico and U.S. business relations.

Gery Chico, Chapter president; Kenneth Smith; David Mondragon, Ford Motor Co; Pat Ottensmeyer, Kansas City Southern; and Al Zapanta, president and CEO, USMCOC.

The Woodlands Gulf Coast Chapter. The Woodlands, TX DAVE HILFMAN, VP GLOBAL SALES FOR UNITED AIRLINES, ADDRESSES LUNCHEON

he Woodlands-Gulf Coast Chapter hosted its quarterly luncheon on June 20 at The Woodlands Resort & Conference Center. Dave Hilfman, vice president for global sales for United Airlines, was the featured speaker. With over 100 people in attendance, Hilfman shared United’s strategy for its global airline and its strong commitment to its Houston hub where it continues to employ more than 14,000. He also reminded the attendees of the company’s commitment to its strong Mexico operations which feature more

than 28 non-stop destinations, over 100 daily flights, and a vast Latin America network. Hilfman presented an award to Pete Garcia, Chapter president and former Continental Airlines executive, for his past accomplishments in putting Continental (now a part of United Airlines parent company) on the map to Latin America with his “Latinization marketing concept,” calling him “Mr. Latinization,” and for his continuing efforts in promoting business between Mexico and Texas with the USMCOC. Sponsors were United Airlines and other members. Dave Hilfman and Pete Garcia.

community has made to our local economy.

Some of the proceeds will be benefit the orphaned children in Oaxaca who are in desperate need. The Woodlands Development Company and Howard Hughes Corp. were primary underwriters for the event. They explained that their participation is one way to say “thank you” and “gracias” to the people of Mexico who have chosen The

The USMCOC is the first organization in our area to hold and organize such a grand affair to recognize the positive contribution the Mexican

Local Mexican resident Ana Laura Basulto, Viva Magazine’s Jorge and Heidi Cadena, AEM-The Association of Mexican Entrepreneurs and Amiga Association were active volunteers and organizers of this gala and their work is tremendously appreciated.

Viva Mexico Awards organizational committee - Jorge Cadena, Heidi Herfurth, Julie Charros, Ana Laura Basulto and Pete Garcia VIVA! tThe Woodlands Magazine.

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

Our Viva Mexico Awards and Benefits Gala celebrating Mexico’s Independence Day was held on September 13 at The Woodlands Resort and Conference Center. The black tie gala was celebrated with mariachis, tequila tasting, fine dining prepared by renowned chefs from Mexico and The Woodlands Resort, dancing, and awards celebration of El Grito ceremony.

Woodlands as a place to come visit, live and do business. “We welcome them and have seen their integration into our community.”

Photo by: VIVA! The Woodlands Magazine.

Annual Gala Dinner

This event was the brainchild of the vice president of the chamber, Julie Charros-Betancor, who also logged many hours promotoing it.

Southwest Chapter Dallas, TX

he Consul General of Dallas, Octavio Tripp, held a brunch in July to honor the visit of the Governor of Guanajuato, Mexico, Miguel Marquez. The event was attended by Dallas business owners, U.S.-Mexico Chamber of Commerce (USMCOC) members and ProMéxico. During his visit to Dallas, Governor Marquez accompanied top executives of La Moderna (Grupo La Moderna, S. A. de C. V.) to Cleburne, Texas, for the company’s announcement of their planned state-of-the-art manufacturing facility. La Moderna is a producer and distributor of a variety of pasta and soup products. The company’s expansion was made possible through the assistance of ProMéxico. ProMéxico Through cooperation with USMCOC and other organizations, ProMéxico has been able to connect with a variety of companies wanting to increase business with Mexico whether the focus is foreign direct investment (FDI) into Mexico or outsourcing from it. ProMéxico is Mexico’s official agency responsible for coordinating strategies aimed at strengthening Mexico’s participation in the international economy, supporting the process of exporting firms established in the country and coordinating activities

aimed at attracting foreign investment. These functions are increasingly important as we begin to see greater trends in nearshoring, a competitive approach to offshoring to Asia and other global markets in what seems a smaller and more connected world. ProMéxico has 45 offices in 31 countries around the world to support their objectives of promoting Mexican exports of services and products, attracting FDI and assisting Mexican companies in establishing operations in foreign countries. The local Dallas office is headed by newly-appointed director Omar Alexander Llamas Montes who brings great expertise to the position. As former deputy trade commissioner of Shanghai, China, he also brings a wealth of knowledge about trade with that market. The Dallas office is focused on expanding its network of American companies interested in investing in Mexico and/ or developing sourcing opportunities from Mexican suppliers of products and services that complement their current lines of business. Looking to expand business across the border? Regarding investment in Mexico, ProMéxico can help to identify the right

path to start operations or in finding the right partners in the country which, for some American companies, is still a barrier due to cultural and language differences. American companies encountering hurdles in their efforts to expand business into Mexico are encouraged to contact ProMéxico and take advantage of the already existing market opportunities as those accessed through the dozen current free trade agreements with more than 45 countries, representing a market of more than 1.2 billion people.

Governor Miguel Marquez and Josie Orosco

Did you know… For every dollar that China exports in certain products, four percent belongs to American companies. Comparatively, for every dollar that Mexico exports in certain products, 40 percent belongs to American companies. This regional integration without doubt benefits companies on both sides of the border as we are no longer talking about products made in a single country, but rather a “made in North America” product. One need look no farther than La Moderna to see a good regional example.

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For more information about ProMexico, visit www.promexico.gob.mx.

Javier Velez, CEO, Grupo Gruma; Consul General Octavio Tripp; Governor Miguel Marquez; Josie Orosco, executive director, USMCOC Southwest Chapter; , Alfredo Duarte, owner, Taxco Produce and Omar Llamas, director of ProMexico Dallas

Governor Miguel Marquez and Mexican Consul General Octavio Tripp

Pacific Northwest Chapter. Seattle, WA NEWS FROM THE NORTHWEST:

n June, the Northwest Chapter kicked off its monthly breakfast network meetings at the Colombia Tower Club on the 76th floor of the Colombia Tower in downtown Seattle.

Breakfast Network Meeting

The venue features spectacular 360-degree views of the Port of Seattle. The goal of the new meeting format is to create a relaxed morning get-together where members and guests have an opportunity to meet and talk around a buffet—there are no assigned seats or big formalities which sets the tone for a casual, friendly way to network and get to know each other. The meetings consolidate the present outreach strategies; the program begins with introducing guests to Chapter members to generate networking, followed by informal presentations to share the Chapter’s vision and programs. So far, the morning reunions have generated four new members. We welcome Duane Dunk, director at Axis Technologies LLC a Marmon Water - Berkshire Hathaway company; Sandra Madrid from University of Washington and Seattle’s go-to person for information about and connections to Latino organizations; and Fernado P. Pous, Pro-Mexico’s regional commissioner. Also…

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We have enthusiastic plans for the remaining months of 2014 that include an ambitious membership drive, new operations in Oregon and expanded efforts for eastern Washington. We will keep you informed about all of this during the upcoming months.

Left to right. Gary Sears, Chapter treasurer, Eduardo Alarcon, Chapter Secretary; Marcos Wanless, Chapter communications director; Felipe Sanchez, member; Luis Navarro, former Chapter president; Luis Morris, Chapter president; Eduardo Baca, Consul of Mexico; Fred Rivera, Perkin’s and Coi and Peru’s Olympic winter team member; and Mount Everest climber Roberto Carcelen Flores.

Acknowledging the Collaboration Agreement between the U.S.-Mexico Chamber of Commerce and ProMexico The USMCOC Northwest Chapter welcomed the newlyappointed regional deputy for Washington, Oregon, Montana and Idaho, Fernando Paz Pous to our breakfast. A highlight of the event was the signing of the Cooperation Agreement by Al Zapanta, president and CEO of the U.S.-Mexico Chamber of Commerce, and Francisco Diaz, director general of ProMexico. The agreement was ratified by Fernando Paz Pous, and Luis Morris, president of the USMCOC NW Chapter.

Coming to Seattle for business? Don’t forget to check in with us! Email our communications director Marcos Wanless (mwanless@usmcocnw.org) who will bring you up-to-date on our activities and contacts.

Breakfast attendees enjoy the spectacular views offered at the Columbia Tower Club. Left to right. Chamber member Felipe Sanchez; Eduardo Alarcon, Chapter Secretary; Marcos Wanless, Chapter director of communications; Luis Navarro, former Chapter president; Luis Morris, Chapters president; Eduardo Baca, Consul of Mexico and Fred Rivera, Perking’s and Coi.

Fernando Paz Pous and Luis Morris.

California Regional Chapter. Los Angeles, CA

he California Regional Chapter is committed to the mission of the U.S.-Mexico Chamber of Commerce (USMCOC) as are all other chapters: to build mutually beneficial trade and investment relationships in the Americas and to promote business between the United States and Mexico. The California Chapter takes full advantage of its close proximity with Baja California Mexico by organizing seminars and networking events both in the U.S. and in Mexico and maintains close relationships with the private and public sectors in each country. Currently, the Chapter is organizing the Third Annual Baja California Investment Forum with the ministry of tourism of the state of Baja California to be held in Los Angeles in November. This goal of this collaboration with

Baja California is to attract and present new opportunities on both sides of the border. Due to a fully binational membership roster and board of directors, the California chapter is a platform with members that actively participate in industry task forces, events, publications and trade missions as well as generating new and creative ideas to further improve on the trade and investment relationships. The California chapter works closely with other chapters in the United States and Mexico, such as the Northeast Chapter, headquartered in New York City, and the Pacifico chapter in Guadalajara, Jalisco, making it an ideal chamber to create more opportunities for its members. Additionally, the Chapter participates

In cooperation with the Washington office and other chapters, the California chapter provides support to the regional and binational business community in a variety of ways, such as: • Business development center and business opportunities • Education and information • Communication and research • Industry task forces • Events/seminars • Trade missions The chamber members come from a wide variety of industries, from manufacturing, real estate, construction and tourism to professional services firms.

Delegates attending from Los Angeles, Tijuana and Mexico City attending a previous trade mission to China Esthela Reyes de Marroquin, Patricio Orozco, Marcela Espinoza, Jaime Gonzalez-Luna, Nuria Marroquin, Marlen Marroquin, Mauricio Lozano, Michelle Mercado, Jose Guzman, Jose Antonio Gonzalez, Xavier Rivas and Manolo Pasero.

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U.S.-MEXICO CHAMBER OF COMMERCE CALIFORNIA REGIONAL CHAPTER

in regional and national activities. In the effort to further support the members and create opportunities for the region, the Chapter, through its relationships with the Chinese, Mexican and U.S. consulates and embassies, will host the third annual trade mission to China and Singapore in partnership with the Northeast Chapter.

Valle de México Chapter. México City

l Dr. Sergio M. Alcocer Martínez de Castro Subsecretario para America del Norte de la Secretaría de Relaciones Exteriores, compartió los acuerdos firmados en la Cumbre de Líderes de América del Norte. El pasado 20 de marzo la Misión de Comercio y Protocolo proveniente de la ciudad de Phoenix participó en un desayuno con el Dr. Sergio M. Alcocer Martínez de Castro, Subsecretario para America del Norte de la Secretaría de Relaciones Exteriores. En el desayuno, el Subsecretario Alcocer compartió con los presentes los acuerdos firmados en la Cumbre de Líderes de América del Norte, que se

celebró el pasado 19 de febrero en la Ciudad de Toluca. El presidente Peña Nieto recibió en la Cumbre al Presidente Obama y al Primer Ministro Harper de Canadá. Los tres gobiernos mostraron interés por estrechar relaciones y se comprometieron con una visión sobre el futuro de la región que contribuya al bienestar y la prosperidad de sus sociedades. Los líderes acordaron objetivos y definieron líneas de acción en cuatro grandes rubros: prosperidad compartida e incluyente, nuevas oportunidades de cooperación, seguridad ciudadana, y temas hemisféricos y globales. Coincidieron en la necesidad de

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trabajar para proyectar las fortalezas de la región, así como en la participación de los sectores privado, académico y social de cada país para desarrollar el potencial de la asociación. Por ello, a fin de garantizar que se cumplan las metas establecidas, este año se creó un esquema de vinculación para recibir opiniones y propuestas, comentó el Subsecretario Alcocer. Un elemento esencial de la prosperidad incluyente y compartida son las fronteras, que pueden ser todavía más dinámicas al mejorar el flujo ágil y seguro de bienes y personas en América del Norte, esto será posible gracias a la armonización de requisitos de información aduanera, y de criterios técnicos de infraestructura y corredores logísticos. La idea del bloque de América del Norte es más fuerte que nunca. México, Estados Unidos y Canadá asumen cada vez más la tarea de diseñar juntos un futuro compartido y una asociación genuina, concluyó el Dr. Alcocer.

ompetitividad, Seguridad y Alianzas con el Sector Privado, puntos tratados por el Lic. Aristóteles Núñez, Jefe del Servicio de Administración Tributaria en el desayuno de la USMCOC

políticas y acciones especialmente en materia de seguridad para detectar y detener cargamentos de mercancías prohibidas y combatir el fraude comercial, se hará en estrecha coordinación con el gobierno de los Estados Unidos, a través del “Plan Estratégico Aduanero”.

En el encuentro que sostuvo el Lic. Aristóteles Núñez, Jefe del Servicio de Administración Tributaria (SAT) con los integrantes de la United States-Mexico Chamber of Commerce el pasado 22 de mayo, explicó que el “Plan Estratégico Aduanero Bilateral” firmado entre la Secretaría de Hacienda de México y el Departamento de Seguridad Interna de los Estados Unidos, tiene como objetivo mantener una estrecha relación de cooperación en materia aduanera, fortalecida por la competitividad, la seguridad y aplicación de las leyes aduaneras; además del el fortalecimiento institucional y la alianza con el sector privado.

El intercambio de información que se dio en el encuentro entre los asistentes y el Lic. Núñez, mostró el interés que existe en la dependencia a su cargo por aumentar la colaboración con el Sector Privado para el desarrollo e implementación de iniciativas que incrementen la competitividad que lleve al país a una relación comercial bilateral en condiciones más equitativas con los Estados Unidos.

El Jefe del SAT comentó que durante este sexenio se dispondrán de siete mil millones de pesos que se canalizarán a la modernización de las aduanas para prestar un servicio más eficiente, reforzar la seguridad e incorporar nuevos puntos que favorezcan el comercio exterior. El titular del SAT puntualizó que el desarrollo e implementación de

Lic. José García Torres, Presidente del Capítulo Valle de México, Lic. Aristóteles Núñez, Jefe del Servicio de Administración Tributaria y Lic. José Andrés García, Director de Desarrollo de Negocios.

Guanajuato Chapter. Leon, Gto. Desayuno conferencia expectativas 2014 del tratado de libre comercio (tlc) méxico con américa del norte. La USMCOC Capítulo Guanajuato en conjunto con la USMCOC Capítulo Pacífico organizaron un desayuno conferencia para dar a conocer a los participantes la evolución del TLC y como aprovecharlo para entrar en el mercado americano, así como los factores de competitividad del comercio internacional. Desayuno conferencia Integración de las cadenas productivas con la reforma hacendaria. La USMCOC Capítulo Guanajuato en conjunto con COFOCE organizaron el pasado 8 de mayo un desayunoconferencia en la ciudad de León, Guanajuato, donde el Dr. Eduardo Reyes Díaz Leal hablo por tres horas de las nuevas disposiciones en materia hacendaría y de la importancia que juegan las empresas y su cadena productiva y de valor en el fortalecimiento del crecimiento económico nacional.

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Foro la Sustentabilidad y la Responsabilidad Social (RS), Factores que impulsan la rentabilidad en las organizaciones El Centro de Producción más Limpia del Bajío (CPLB) organizó el pasado 23 de julio en la ciudad de León, Gto un Foro en materia de RS y Sustentabilidad. El objetivo del Foro fue el presentar a los participantes herramientas y acciones que se

Foro México Responsable 2014. La Responsabilidad Social Empresarial (RSE) y la Sustentabilidad están íntimamente ligadas. La empresa RESPONSABLE organizó el pasado 12 de junio en la ciudad de México el Foro México Responsable 2014. En dicho Foro el Centro de Producción más Limpia del Bajío (CPLB) tuvo una participación muy interesante al

pueden implementar en las empresas de proceso y servicios para hacerlas mas rentables económicamente, mas eficientes técnicamente, mas amigables con el medio ambiente y que generen una mejor calidad de vida para sus colaboradores y la comunidad. El Foro se realizó bajo la dinámica de 4 conferencias magistrales, 2 paneles de discusión y un espacio para el intercambio de ideas entre los asistentes. Con una asistencia de poco más de 100 participantes, 16 patrocinadores y ponentes de primer nivel provenientes de Guatemala, Miami, Ciudad de México y del estado de Guanajuato (pertenecientes del sector empresarial y de gobierno) se trataron los temas de; Estado de la Responsabilidad Social (RS) en México, Viviendo la experiencia de ser sustentables (dos casos de éxito), Estado de la RS en la industria hotelera, Estándares mundiales de la sustentabilidad en la industria de servicios, Producción más limpia y eficiencia energética y programa

Lou Raff y Romain Marsal de la ONG

hablar en las mesas de trabajo de las sesiones vespertinas sobre “Los primeros pasos para implementar programas medioambientales”. Para el CPLB los temas de RSE y Sustentabilidad son prioritarios en sus líneas de trabajo, por lo cual, la relación laboral entre RESPONSABLE-CPLB se consolida en pro del bienestar empresarial y de la sociedad Mexicana.

empresarial de adopción de hectáreas para la conservación de áreas naturales protegidas. El compromiso de la Cámara Capítulo Guanajuato y del CPLB ahora es hacer de este Foro un referente en el estado de Guanajuato, de forma anual y de utilidad e interés para el sector empresarial y social.

Dr. Eduardo Reyes durante su participación en el desayuno conferencia.

Manuel Miroglio, Denis Rizo, Paola Mares, Saúl Blanco, Jesús Jara, Eric Burdales, José Luís Palacios y Antonio Vargas

CHAPTER ACTIVITIES / ACTIVIDADES DEL CAPÍTULO

Golfo Chapter. Veracruz, Ver. Consejo de Seguridad Ciudadana de Veracruz Y Boca del Rio 14 de Abril 2014

nte organismo empresariales y representantes de camaras , La USMCOC fue convocada a participar y colaborar en los esfuerzos a nivel ciudadano para la prevension y cuidado de la ciudadania. Es por eso que e Capitulo del Golfo Veracruz cumple su compromiso de participar y enlazar con las personas claves de la region. Entre varios participantes se encontraron Ing. Jose Manuel Urreta presidente de Concamin zona Sureste, Ing. Marcos Orduña presidente Consejo de Empresarios de Veracruz, Capitán Campuzano SSP, Delegado de Transito del Estado Lic. Roberto López Santoyo.

Encuentro Reforma Energetica Veracruz Ver. Veracruz, Ver., 06 de Junio del 2014.- El Municipio de Veracruz se suma y apoya a la Reforma Energética, porque garantiza que los hidrocarburos son y seguirán siendo propiedad de la nación, además de beneficiar la economía familiar y motivar la disminución en el precio de los energéticos.El capítulo del Golfo fue convocado en esta reunión con gran trascendencia nacional e internacional, los esfuerzos por enlazar negocios con EEUU Y Mexico son los objetivos de esta organización. Es por eso aquellas compañías interesadas en invertir en el Estado de Veracruz cuentan con un aliado que es la USCOC capitulo Golfo. Parte del presídium senador Juan Bueno Torio, alcalde de Veracruz Alejandro Poo, senador Héctor Yunes, diputada federal Anilú Ingram, Gobernador de Veracruz Javier duarte de Ochoa, senador David Penchyna Grub, legislador Emilio Gamboa Patrón. www.veracruzmunicipio.gob.mx/reforma-energetica

Semana del Emprendedor 7 de Julio 2014 WTC Boca Del Rio.

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Reunion Consejo Coordinador Empresarial 26 de Mayo 2014

En el marco de reunion del nuevo Consejo Cordinador Empresarial area Conurbada Vearcruz , Boca del Rio y Medellin . La USMCOC capitulo Golfo fue invitada a formar parte de este consejo en la posision de vice –presidencia de relaciones internacionales.

En el marco de la Semana del Emprendedor contando con la presencia del Gobernador de Veracruz Dr. Javier Duarte de Ochoa ante organismo y cámaras empresariales del Estado, la USMCOC capitulo Golfo –Veracruz participa en el desayuno previo a la inauguración de dicho evento..En la mesa se contemplan Erik Porres Blesa secretario e Economia del Estado de Veracruz, Javier Duarte de Ochoa Gobernador del Estado de Vearcruz, Lic. Ana María Sánchez Sánchez presidenta nacional AMMJE www.veracruz.gob.mx/blog/2014/07/06/inicia-la-semanadel-emprendedor-2014-lideres-transformando-veracruz/

Mexico’s Big Deal By Stephen Molina

OPINION / OPINION

M 42

exican President Peña Nieto and the PRI (Institutional Revolutionary Party, Partido Revolucionario Institucional) did it. His nation is experiencing, to use Venezuela’s term made famous in the 1990s, their apertura. The opening. Recent reforms will allow the energy industry—including oil and gas—to be open to private and foreign investment for the first time in almost 80 years. I grew up in Mexico, arriving there from

Michigan in the fifth grade and attending the American School. In those days the law required us to take half a day of classes in Spanish and to learn Mexican history. I will never forget the emphasis Mexico placed on the 1938 expropriation of the oil and gas industry from foreign investors. It was part of our history lessons and every Mexican learned how important that event was and how the hydrocarbons—their descendant’s heritage—would never again fall into the hands of foreign exploitation and

ownership. That concept became part of Mexico’s constitution and embedded in Mexican culture. Over the years I have seen attempts by Mexican politicians to revisit the issue. Their reasoning, considering the country’s reserves and declining production, need for investment capital and missed opportunities, was unshakable, but it proved to be political suicide. Continued national ownership of Mexico’s hydrocarbons

I mention this only to impress upon non-Mexican nationals what a “big deal” these energy reforms are for Mexico and individual Mexicans. I moderate panels as chair of the Mexican Energy Reform Committee for the U.S.-Mexico Chamber of Commerce in Washington D.C. and that’s the phrase I keep hearing from Mexican participants. I doubt if there is any Mexican who doesn’t harbor a strong opinion on this industry opening. Mexico enjoys one of the world’s great hydrocarbon reserve bases, political stability and geographic advantage, but development was slowed by significant issues including lack of development capital and, in some cases, technology and expertise—and Mexico was unable to exploit its hydrocarbons to anywhere near their potential: • being a net importer of natural gas to meet its power generation demands and exporting oil to the U.S. to have it sold back to them as refined petroleum products, especially gasoline; • experiencing severe declining production figures from PEMEX; and,

provable, probable and likely reserves of oil and gas beneath each nation and offshore. Do you see 1.) another OPEC (Organization of the Petroleum Exporting Countries); 2.) an alignment of net exporters of oil and gas to the rest of the world; 3.) energy independence for the U.S.; 4.) a booming Mexican economy driven by the aggressive development of their hydrocarbons; or all four scenarios? I see them all. In the fall of 2012, the London-based Oil Council held an event in Houston. They asked me to conduct an interview with Houston’s U.S. Congressman Pete Olson, a member of the House Energy and Commerce Committee. We sat in two winged-back chairs on a raised stage and chatted in front of the assembly. I posed a question to the Congressman: If we encourage and stop hindering the importation into the U.S. of Alberta, Canada’s oil-sandsderived petroleum, cooperate closely with Mexico and aid them however we can in their development of their natural resources and infrastructure, encourage rather than hinder the development of our U.S. reserves both on and offshore, are the reserves and volumes actually there in our three nations for us to achieve energy independence now and stop relying on unfriendly regimes to supply so much of our hydrocarbon needs? His answer was an unequivocal “Yes.”

Why is this Mexican development a “game changer” for Mexico, the U.S. and Canada?

Olson said the Committee knows this, as does everyone else in Washington, but politics (in his view, the current administration; in my view, both parties are to blame) is blocking this opportunity. By that I mean special interests on both sides of oil and gas production issues, including, but not limited to, the industry’s and environmentalists influence.

Look at a map. We see Canada to our north and Mexico to the south. Draw a circle around our three nations from Alaska to Yucatan. A NAFTA-type oil and gas region. Then calculate the

So, we talk about energy independence in the U.S., but don’t really move on it. We hinder Alaska’s development which is at odds with its citizens’ goals and wishes, we restrict new offshore

• an ever-increasing burden to fund social programs, while the rest of the oil-and-gas-rich world and producing companies cashed in on the huge excess profits from oil and gas production.

drilling in the Gulf of Mexico, federal leasing in the U.S. is getting more and more difficult because of government regulation, and on and on. What I am saying is this: Form an energy development bond between Canada, the U.S. and Mexico and we three would likely be the most powerful oil and gas energy traders in the world. I welcome Mexico’s opening because I see this as a giant step toward my country achieving energy independence. This could very well be as big a game changer for us in the U.S. and Canada as shale, horizontal drilling and Canadian oil sands reserves. I was disappointed at the recent Toluca, Mexico, meetings between the heads of state of Mexico, Canada and the U.S. This should have been at the top of the agenda. Hopefully, the U.S. is waiting until it’s a done deal in Mexico before moving ahead on plans for full blown cooperation and infrastructure integration. Would the ability for our three nations to supply gas to Europe and break the Russian Federation’s stranglehold on that market give us better foreign policy options? Would we continue doing business with unfriendly regimes or those who can control high oil prices? What part could we play in keeping the price of oil and gas at home at reasonable levels? There will always be questions of sovereign politics in any cooperative undertaking between nations. I submit that now is the time for all three countries to think outside of the box and move forward with a joint energy and environmental strategy. It’s a win-win-win. Mexico is currently the world’s 14th largest economy; Goldman Sachs estimates that Mexico will be the fifth largest economy; by 2050. The Mexican opening of the oil and gas industry to private and foreign investment is a big deal for Mexico and for the U.S. and Canada. Again, look at a map.

Stephen Molina is a lawyer with the Dentons US LLP Dallas office and a member of the U.S.-Mexico Chamber of Commerce board of directors. His comments are excerpted from an article he recently wrote for his firm’s “Game Changer” client publication.

OPINION / OPINION

and related industry was too ingrained in the people’s minds. It was political dynamite. So, like many who grew up in that culture, I never thought that it would change, no matter how desperate the situation.

ENERGY/ OPINION / OPINIONOPINION DE ENRGÍA

“We’ve been at the side of American companies for 80 years. And we want to stay there, supporting mutually beneficial opportunities, and, most importantly, supporting job growth in cities and towns across America—as well as in Mexico.”

Ex-Im Bank: Supporting U.S. Jobs and Ensuring Opportunity Is a Two-Way Street By Fred P. Hochberg, chairman and president, Export-Import Bank of the United States

As the story goes, decades ago, a sitting president of Mexico traveled to Singapore to meet with the prime minister. Over the course of the customary small talk shared by heads of state at diplomatic summits, the prime minister of Singapore asked the Mexican president: “Mr. President, how long is the border that Mexico shares with the United States?” And the Mexican President replied: “Unfortunately, it’s about 1,800 miles.” So the prime minister of Singapore got a quizzical look on his face, went quiet for a few moments, and then responded: “Mr. President, what Singapore would give for even a one-mile border with the United States.”

Of course, this conversation reportedly happened a very long time ago. But even today, we sometimes forget—whether we’re Americans, or Mexicans, or Mexican-Americans—that geography has blessed us all with great neighbors. I like to think that the U.S. and Mexico would have been the closest of trading partners even if we were on opposite ends of the earth. Of course, it’s impossible to know that. But I am grateful that our two countries have been able to forge an economic relationship that is mutually beneficial—a relationship built on a long, productive history and an enduring foundation of trust. Nowhere is that relationship more evident than in our work at the Export-Import Bank. In fact, our first business with Mexico dates back exactly 80 years, to the very first year of our existence. Those initial authorizations provided $150,000 in financing to facilitate the sale of water meters and pipes from the U.S. Pipe and Foundry Company to the State of Chihuahua.

In the decades since, the dollar values of our transactions have gone up—but our ties have remained strong, and, at Ex-Im, our mission has remained the same: to equip American exporters of all sizes with the tools they need to venture out to new markets, and to create new jobs here at home. Our business is making sure that Americanmade products have the opportunity to succeed on their merits against fierce international competition—because when the world buys American, it’s a win-win for both the buyer and the seller. The importing nation gets the highest quality, most innovative goods and services. The exporting nation gets a boost in sales. And, most importantly, both nations get job growth. Today, we do more business with Mexico than any other country. That’s right—Mexico is number one. And we’re laying a foundation for future collaborative financing which will allow us and Banamex to work together to boost U.S. and Mexican products so that we can bring the best of both of our economies to bear in the global marketplace. That’s what we see across our Mexican portfolio at Ex-Im. I saw that firsthand two years ago this month in Monterrey, when I met with an entrepreneur named Rogelio Cisneros. Rogelio is the owner of EZI Metales, an innovative metal fabrication business. Rogelio was looking to grow his company of about 20 employees when he happened to visit Chicago for a trade show. There, he learned how Ex-Im financing could empower him to boost sales by partnering with U.S. companies—and he’s never looked back. Today, EZI has gone from 20 employees to 520 across multiple cities. They work on direct assembly with John Deere, truck frames with Case New Holland, fuel tanks with Volvo, and X-ray tables with GE.

OPINION / OPINION

he former Mexican Ambassador to the U.S., Arturo Sarukhán, has a great story he likes to tell—one that says a lot about Mexico and the U.S.

I spend a lot of time thinking about American companies and American jobs. After all, that’s our top priority. But it’s important to remember that on the other end of every transaction is another company adding quality, local jobs of their own, and strengthening their national economy. Many of those companies are in Mexico. And EZI Metales is just one example of the win-win work we do when we connect U.S. and Mexican companies with competitive financing. Our work crosses a broad range of industries—and covers businesses of all sizes. One of our most active partners is PEMEX. Shortly after I joined Ex-Im, I spent a day at the Cantarell Field touring oil platforms with leaders from PEMEX—and this spring, I was thrilled to welcome PEMEX’s CEO, Emilio Lozoya Austin, to Ex-Im’s annual conference. Our work with PEMEX over the past five years alone has fostered the growth of American small businesses to the tune of $1 billion in financing. It’s supported nearly 6,000 U.S. small business jobs— and a wealth of local jobs in Mexico, as well.

OPINION INFRAESTRUCTURA / OPINION INFRAESTRUCTURA

KANSAS CITY SOUTHERN

Rail

green

new

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www.kcsouthern.com

As important as PEMEX is to our work with Mexico, however, the vast majority of our customers—90 percent, in fact—are actually small businesses. It doesn’t get much smaller than popcorn. Located in Chapman, Nebraska, Preferred Popcorn has worked with Ex-Im for all 16 years they’ve been in business. About half of their sales are exports. And with the support of our export credit insurance program, they’ve been able to grow their business from about 15 employees to more than 40. They ship their popcorn to about 60 countries—but their biggest customer is Mexico. In fact, they recently signed a contract with Cinemex, Mexico’s largest movie theater chain. Whether it’s popcorn, energy, or any product in between, our goal is to support even greater opportunities in both of our countries.

But despite our 80-year track record of success, despite supporting nearly 1.2 million American jobs over the last five years, and despite generating a surplus of more than a billion dollars for U.S. taxpayers in 2013, there are some in Washington who still don’t understand the value of Ex-Im. On September 30, our charter is set to expire; unless Congress acts, we’ll be forced to close our doors. The Senate recently introduced a bipartisan bill calling for Ex-Im to be reauthorized for five years—five years that would deliver confidence to countless American exporters, and certainty to potential buyers in Mexico and elsewhere. With opportunities ramping up in markets around the world, now is not the time to isolate American businesses from the global economy. Mexico’s daring set of reforms— the “Pact for Mexico”—is already impacting everything from energy and education to communications and the health industry. In the energy sector alone, $30 billion in foreign investment is projected to flow into Mexico by 2025. And that’s just one industry among many anticipating rapid growth. U.S. exporters are going to see substantial new opportunities to be partners in that growth—and that creates an enormous potential to spur job creation in both America and Mexico. U.S. companies produce the highest quality, most innovative goods and services in the world. And we’re working to ensure that—if private banks can’t offer support—American businesses (and especially small businesses) have the financing necessary to win the increasingly competitive race for export success. That’s why Ex-Im’s reauthorization is so important. We’ve been at the side of American companies for 80 years. And we want to stay there, supporting mutually beneficial opportunities, and, most importantly, supporting job growth in cities and towns across America—as well as in Mexico.

UPDATE TELECOMMUNICATIONS / ACTUALIZACIÓN DE TELECOMUNICACIÓN

REFORMS IN MOTION

Telecommunications and Broadcasting Law

ast July, Mexican President Enrique Peña Nieto issued the new Federal Telecommunications and Broadcasting Law. By doing so, his administration took a bold step to start fulfilling its vision of a more prosperous and competitive Mexico, with equal rights for all. In December 2012, since his first day in office, President Peña Nieto was straightforward in establishing his conviction that knowledge and technology are the contemporary and most effective transformation tools to accomplish economic progress,

justice and democracy. Six months later, with the full support of the most important political parties, the Congress approved the Constitutional Reform in Telecommunications and Economic Competence. They are an unprecedented set of measures aimed at redefining the telecommunications and broadcasting industries, as well as increasing competition within those sectors, ensuring legal certainty, bringing forth a new legal environment and fostering democracy in the media. The new Federal Telecommunications Law is the legal offspring of the

reform and provides the operational framework for the projects and initiatives ordered in the Constitution. It is a comprehensive legal package that encompasses the new Mexican Public Broadcasting System and reform, and amends 11 other different laws like foreign investment, federal copyright and the public-private partnership laws, as well as the federal penal code. The scope of the new set of rules embodied by the reform and the telecommunications law is to upgrade and strengthen a strategic sector that fell short of delivering its full

Revealing data about Mexico’s telecommunications industry The Mexican telecommunications industry is one of the most dynamic sectors within the Mexican economy, maintaining growth rates up to four times the growth of the national Gross Domestic Product (GDP). In the last 10 years, the average annual growth of the telecommunications sector was 10.1 percent. As of 2012, it generated annual revenues of nearly $30.7 billion, and in 2013 its annual growth rate reached 6.3 percent, while investments in the sector totaled nearly $5 billion.

Source: Secretaria de Comunicaciones y Transportes

potential to transform the country into the prosperous new nation that Peña Nieto and his administration envisioned for Mexico. Despite the proven positive impact that telecommunications has upon a nation´s growth and development, the Mexican telecommunication and broadcasting industries were highly concentrated in only two major operators. This prevented the entrance of new competitors and delivered poor quality services with high prices, thus affecting all users. This situation also denied consumers access to freedom of speech and information rights, while posing

Despite these outstanding figures, a thorough assessment of the situation in this industry showed important shortcomings. In terms of telecommunications infrastructure, for example, Mexico ranks 82 out of 144 countries according to the “2013 Global Report on Information Technologies” from the World Economic Forum. On the other hand, with a per capita investment in telecommunications of only $42 from 2009 to 2011, Mexico ranks second to last among the member countries of the Organization for Economic Cooperation and Development (OECD). Among other things, this is evidenced by the fact that 35 percent of the Mexican population lives in places where there is no access at all to optic fiber. Also, according to OECD standards, the country ranks the lowest in broadband penetration with 11.4 and 13.9 fixed and wireless subscriptions per 100 inhabitants, respectively. These figures are below the OECD average and compare negatively with other Latin American countries. Additionally, the Mexican government had lost its ability to drive the effort to increase access for the country’s people due to an inadequate legal framework, deficiencies in the institutional design, and the existence of barriers to entry for new competitors. Alongside its costly consequences for Mexican users, the OECD has

stated that the dysfunction of the telecommunications sector in the country generated a cumulative loss equivalent to $129 billion from 2005 to 2009 which equals 1.8 percent of annual GDP. The constitutional reform driven by President Peña Nieto’s administration was saluted as a means to promote in-depth structural changes and intensify effective competition in telecommunications and broadcasting in order to improve the welfare of the Mexican people, and to unleash the economic potential of the country. The guiding principles of the telecommunications reform The constitutional reform sets six guiding principles that pave the way for a new configuration within the sector and bring forth interesting business opportunities. The reform guarantees the people’s freedom of speech and right to access information. It also ensures users’ rights within telecommunication and broadcasting services with a special focus on impaired audiences. The constitutional amendments consider telecommunications as a public service of general interest whose delivery must be ensured by the government to support conditions of fair competition, quality, diversity, universal coverage, networking and convergence, free access and continuity. In order to strengthen and ensure legal certainty for all players, the legal framework for telecommunications was updated by issuing a system of single concessions to regulate spectrum, networks and telecommunications services. Aside from enabling a more efficient spectrum management, operators will be able to offer a wider range of authorized services (voice, data, video and mobility) in a single package, thus benefiting users. Grantees may provide higher capacity and speed transmission of data, images and sound thanks to more efficient use of the radio spectrum. The creation of the Federal Telecommunications Institute (IFT), Federal Competition Commission and specialized courts for telecommunications awards, oversight and regulation was ordered by the constitutional reform to

UPDATE TELECOMMUNICATIONS / ACTUALIZACIÓN DE TELECOMUNICACIÓN

almost unconquerable obstacles for the social, economic and cultural development of Mexico.

establish a new institutional framework. These entities have already taken action to ensure regulation in equal and fair terms for all service providers in the industry. As a result, the IFT has issued asymmetric regulation that will guarantee that no dominant operator will have the power to manipulate the market in its favor affecting the interests of other competitors, users and audiences. IFT has also ordered that all dealers can use the network of dominant operators to offer their services to end users.

These connectivity goals will be reached by embracing an ambitious infrastructure plan that guarantees greater coverage for more Mexican people. To meet the challenge, actions are being taken to expand and strengthen the backbone of the broadband fiber optic network owned by the Federal Commission of Electricity (CFE) and deploy a Shared Wholesaler Network that will provide services for both Mobile Virtual Network Operators (MVNO’s) and concessionaries.

Investment opportunities

Additionally, IFT started the bidding process for the two new national digital TV broadcast networks and has set the ground rules for the “must-carry and must-offer” procedure that allows broadcasters to retransmit pay TV signals with no cost for viewers, while pay TV providers are allowed to transmit broadcast signals on their systems with no charge to the consumer. As a sign of the times and aligned with its strategic intent to boost telecommunications as development and social inclusion tools, the need to establish a National Digital Agenda was also considered in the constitutional reform. The federal administration is responsible for bringing this policy to fruition by fostering infrastructure development, creating conditions for accessibility and connectivity, and promoting the use of the Information and Communications Technologies (ITC).

Source: Secretaria de Comunicaciones y Transportes

UPDATE TELECOMMUNICATIONS / ACTUALIZACIÓN DE TELECOMUNICACIÓN

Taking a major step to enhance effective competition in the industry, foreign direct investment is now allowed in the telecommunications and satellite communications sectors up to a 100 percent ceiling, while in the broadcasting sector, it can top 49 percent. Openness to foreign investment will improve services for end users and consumers of telephony, television, internet and radio.

The administration is also in charge of providing suitable conditions for the development of digital skills among the population. This policy is intended to grow services so at least 70 percent of households and 85 percent of micro, small and medium-sized companies can benefit from high speed internet access at world class standards and attainable pricing.

The backbone network project will add almost 28,000 miles to the existing 15,500 miles owned by CFE and will expand its coverage to practically all Mexican territories. Additionally, it will increase the optic fiber supply, promote broadband access and eliminate access barriers for new competitors. Its deployment cost is estimated at $750 million. According to the law, its deployment may also use state-owned assets. On the other hand, the shared network project will use 90 MHz of the 700 MHz band and, linked to the backbone network, will be able to provide coverage for 98 percent of the population. Its deployment, calculated to be approximately $10 billion, may call for participation of private investment through a public-private partnership model. Its construction begins this year and will be fully operational by the year 2018. With the constitutional reform and the Federal Telecommunications Law, the groundwork for the substantial transformation of the telecommunications sector is completed. In the short term, it sets the conditions for effective competition, increased coverage and improvement of service penetration among the population. In the long term, a transformative impact on economic and social development of Mexico is expected as well as increased welfare for the people. The structural improvements introduced by both the reform and the law place Mexico at a unique historic crossroads to capitalize on all the new opportunities for economic growth and development for the country.

Mexican tax rule change requires download of electronic accounting information By: Scott Sneckenberger, partner, Plante Moran

Accounting Records Included in the New Code Documents and information that taxpayers must now submit with their monthly tax filings include: • • • • • •

Journal entries Certain notices filed with the Mexican government Annual and monthly tax information returns Bank statements Share transfer information Documentation related to the registration of employees in the Mexican Social Security system • Supporting documentation related to imports and exports • Supporting documentation and information related to sales and purchase transactions that occurred during the month. All accounting transactions or journal entries must conform to specific requirements as follows: • Posted in the accounting records within five business days of the transaction date, including a detailed description. • Recorded in the accounting journal in chronological order, with a detailed description, debit value, credit value, opening balance and ending balance. • Include the identification of each transaction or activity with a corresponding identifying number, such as an invoice number, voucher number, etc., to allow the tax authority to identify the corresponding payment method, tax rate, and withholding tax. • Disclose investments with related supporting documentation and acquisition dates.

• Organize the information so that it can be sorted by account number. • Include statements of financial position, income, changes in stockholders’ equity and links to supporting documentation, such as subsidiary ledgers and schedules. • Disclose taxes and contributions that should be credited or omitted, as well as tax benefits and tax credits received by the tax payer. • Disclose assets and related classifications, including those assets which are purchased or manufactured, and their intended use by the Company, for example, assets intended for sale, donation, or destruction. • Include translations of disclosures and information, if provided in a language other than Spanish. • Include the foreign exchange rates used, if information is provided in a currency other than the Mexican Peso. • Provide transactions in a format that can be sorted by cost center, identifying transaction, activity, location, etc. Specific information and regulations concerning how this accounting information should be uploaded to the SAT Internet Portal have not yet been published. Therefore, taxpayers must wait to see if their accounting systems will facilitate the uploading of information to the SAT, or if additional manipulation of the raw data will be required. Companies and taxpayers using accounting systems that are part of an English enterprise resource planning (ERP) environment, housed outside of Mexico, should analyze their specific situations to determine how they will be able to comply with this new obligation. The Mexican tax administration indicates that they will require an initial download of information for 2014, with the September filings, which are due no later than October 17, 2014. It appears that this initial filing must include data for the period July 1 – September 30, 2014, and single monthly filings will be required beginning in November 2014.

UPDATE FISCAL / ACTUALIZACIÓN FISCAL

n October 2013, the Mexican government published a new rule requiring that taxpayers electronically submit monthly accounting information in accordance with rules to be published in the first part of 2014. In April 2014, the government published additional regulations related to this new obligation. These regulations explain what documentation must be submitted, according to the new law.

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MEMBER HIGHLIGHTS / MIEMBRO DESTACADO

Ford Motor Company

Diversity and inclusiveness are part a Ford’s DNA, and growing a strong minority presence within their supplier and dealer body remains a key focus. Ford has 400 minority suppliers and spends over $500 million with Hispanic suppliers annually. Ford is 1 of 4 U.S. companies and the only automotive manufacturer that spends more than $500 million annually. Ford directs significant efforts toward growing the minority ranks of dealership management and employment to better reflect the communities they serve. For much of the United States, that means a focus on recruiting Hispanic dealers. Within the U.S., Ford has 163 minority dealers, and within the last year has added 12 new minority dealers to their network. Eight of these new dealers are Hispanic, bringing their Hispanic dealer count to 71. Ford’s Hispanic dealers are job creators, employing 5,000 people in the U.S. and responsible for over $1.2 billion in total dealership revenue. Ford has strong philanthropic history as well and supports numerous Hispanic organizations and events in both the United States and Mexico. One example is their involvement in the largest crossgenerational Hispanic conference in the nation. Held in the United States by the Hispanic Leadership Institute, Ford provides programs and scholarships to develop the next generation of leaders. Ford’s Driving Dreams Tour also supports and motivates Hispanic students to stay in school and graduate on time by providing educational resources, scholarships, prizes and awards. Ford started this program in North Texas and Miami and will bring this program to Chicago for the first time this year.

In Mexico, Ford supports a broad range of philanthropic programs—from signature education programs with local dealers that have supported over 1.6 million kids to protecting Mexico’s precious natural resources. Ford is proud of the philanthropic role they have played along with dealers, suppliers, company employees to help build, better, more vibrant communities where they live and operate. But Ford also has a great business story and a long history in Mexico. Ford Motor Company has been an important player in the Mexican automotive market for 90 years, and today they are the fourth largest auto producer in Mexico, supporting more than 8,000 employees. Due to its strategic location, qualified labor force, and many economic reforms, Mexico is an attractive place for Ford to invest. In the last 12 years, Ford has invested nearly $5 billion to expand its manufacturing footprint in Mexico. At their Hermosillo Assembly and Stamping plant, they manufacture the popular Ford Fusion, Lincoln MKZ and their respective hybrids. Ford also builds gasoline and diesel engines in their Chihuahua plant for the Fusion, Escape, C-Max and other vehicles. And at Cuautitlan Assembly, Ford produces the Fiesta—a world-class car that is in high demand globally. Fiesta, built in Mexico and other spots around the world, was the best-selling subcompact car globally with 735,299 registrations in 2013. Ford also has a Product Engineering base in Mexico, with over 980 engineers who participate in projects that impact the company globally. As Ford looks to the future one area where they feel they have real opportunity is in international trade. Last year, Ford exported more than 380,000 Americanmade automobiles around the world, making Ford the largest exporter of automobiles from the United States. And they exported from Mexico as well, becoming Mexico’s second largest exporter in the automotive industry. Today more than ever Ford is a global company with operations and sales channels around the world. All indications are that the United States and Mexico will continue to be uniquely equipped to perform at their very best in a global framework and has a bright future in both countries.

MEMBER HIGHLIGHTS / MIEMBRO DESTACADO

ord Motor Company has accomplished much as a global company including an important presence in the U.S. and Mexico. Altogether, Ford employs nearly 76,500 people in the USA and Mexico and purchases billions of parts from suppliers annually in the two countries. Both the U.S. and Mexico are home to all facets of their business— engineers who design vehicles, suppliers who provide parts, workers who manufacture vehicles and dealers who get them to consumers.

New members to the United States-Mexico Chamber of Commerce

CALIFORNIA REGIONAL CHAPTER LOS ANGELES, CA.

MICHOACAN CHAPTER MORELIA, MICH.

California Hispanic Chamber of Commerce www.cahcc.com Sector: Government

Alebrije Sector: Services

Lewis & Lewis Insurance Agency Inc. www.mexicanautoinsurance.com Sector: Auto Insurance Jorge Corralejo Sector: Government Consultant/ Individual Latin Escapes www.latinescapes.com Sector: Travel Agency LCC Properties Group Attorney at Law Sector: law MARLECO LLC www.boutiquemirel/com Sector: Retail in Veracruz

NEW MEMBERS / NUEVOS MIEMBROS

Norman Krieger www.normankrieger.com Sector: Customs Brokers Nutridata www.nutridata.com Sector: Product Labeling/Regulatory Labeling Tempus, Inc. http://www.tempus-us.com/ Sector: Money Exchange/Financial Institution GOLFO CHAPTER VERACRUZ Grupo Socram http://www.gruposocram.com.mx Sector: Engineering, Procurement and Construction. (Industrial, Civil and Maritime) Grupo Legotec http://www.grupolegotec.com Sector: Oil & Gas Equipment

Purhembe Sector: Food Frutese Sector: Food MID-AMERICA CHAPTER. CHICAGO, IL Chase www.chase.com Sector: Financial Landstar www.landstar.com Sector: Logistics Team Retail First Sector: Automotive Ford www.ford.com Sector: Automotive NORTHEAST CHAPTER NEW YORK Akerman LLP Corporate Member www.akerman.com Sector: Law & Legal Services Bridget Goris-Klein DelBello Donnellan Weingarten Wise & Wiederkehr LLP www.ddw-law.com Sector: Law & Legal Services Gleason & Koatz LLP www. gleasonkoatz.com Sector: Law & Legal Services Global Human Capital Solutions www.globalhumancapitalsolutions. com Sector: Consulting Services Lutron www.lutron.com Sector: Electronics

NEXCO www.nexco.org Sector: Educational Non-Profit Organization

United-Metal Services Inc. www.united-metal.net Sector: Structural Steel Fabrication

Sheppard Mullin LLP www.sheppardmullin.com Sector: Law & Legal Services

Bepc Inc. www.bepc.com Sector: Eng.Consulting for Medical Devices

TMC Consulting Mexico www.tmclegal.com Sector: Consulting Services The Smile Train www.smiletrain.org Sector: Surgical Non-Profit Organization Vertex www.vertexeng.com Sector: Construction & Engineering

AlmayCorazon Tej Balletfolkl www.actbf.org Sector: Cultural Dance & Performances THE WOODLANDS GULF COAST CHAPTER Kelsey Seybold Clinic www.kelsey-seybold.com Sector: Healthcare

PACIFIC, NORTWEST CHAPTER. SEATTLE, WA.

Banco Santander www.santander.com Sector: Financial

John Diaz LLC Home Land Security Systems johndiazllc@gmail.com Sector: Security

Texas Children Hospital http://texaschildrens.org Sector: Healthcare

Rural Housing Foundation http://www.orfh.org/index.html Sector: Housing Investments & Water Treatment Systems Sector: Investment University of Washington, School of Law http://www.law.washington.edu/ Sector: Education Wanless Inc. www.linkedin.com/in/ marcoswanless/ Sector: Communications PR and Marketing Services Stratalife Solutions, LLC Trini Evans http://www.stratalifesolutions.com/ Sector: Health SOUTHWEST CHAPTER. DALLAS, TX.

Susan Love Fitts www.susanlovefitts.com Sector: Consultant CalvettiFerguson www.calvettiferguson.com Sector: Accounting Firm TaxiClub http://www.taxiclub.org Sector: Taxi Services Houston Dynamos http://www.houstondynamo.com Sector: Sports VALLE DE MÉXICO CHAPTER CD. DE MÉXICO UPS Mexico berthamercado@ups.com Sector: Logistics

MEMBER DISCOUNTS Consult your regional chapter to obtain discounts: VALLE DE MÉXICO CHAPTER Mexico City · Holiday Inn Express & Suites Mexico City at the WTC · Four Seasons Hotel Mexico, D.F. · St. Regis Mexico City · NH Hoteles Mexico nivel nacional · Marquis Reforma Hotel · Marriott Reforma Mexico City · Plaza Suites Mexico City · International Meal Company Mexico · Hoteles Radisson · Ostar Grupo Hotelero · Ostar Hotel Group has Geneve Hotel in Mexico City, the Racquet Cuernavaca, Hotel Francia Aguascalientes, Veracruz Centro Historico Hotel, Hotel Viva Villahermosa and Ramada Hotel Getaway in Orlando. · Hoteles Misión

In all of its 40 locations in Mexico till December 20th 2014. · UPS Mexico THE WOODLANDS - GULF COAST CHAPTER The Woodlands, TX · The Woodlands Resort & Conference Center GUANAJUATO CHAPTER León, Gto. · MEXICO PLAZA HOTELS Locations: Leon, Guanajuato, Irapuato, Salamanca, Celaya and Guadalajara. Coming soon: Aguascalientes, Silao y San Miguel de Allende

· Hotel La Nueva Estancia MID-AMERICA CHAPTER Chicago, IL · Aeromexico · United/Continental · American Airlines · Crown Paradise Resorts · Las Brisas Hotels INTER-AMERICAN CHAPTER Miami, FL · Interjet · Aeromexico · Sports Club CALIFORNIA REGIONAL CHAPTER

Los Angeles, CA · Aeromexico · Alaska Airlines · Benckmarkemail en Espanol · Agencia Aduanal Adolfo Ayala Bejarano · Correduria Publica No. 23 · Cima Designs · Lewis and Lewis Insurange Agency, Inc. · Todd Becraft Attorney at Law · Trio America PACÍFICO CHAPTER Guadalajara, Jal · ABC Global Group

SEPTEMBER / SEPTIEMBRE CHAPTER

EVENT

DATE

Mid-America Chapter. Chicago, IL

2014 Automotive Leadership Awards

Westin Book Cadillac Hotel, Detroit MI

blanca.berthier@usmcoc.org

Pacific Chapter - Guadalajara, Jal.

Foro regional

Camara de comercio

pedro.linares@usmcoc.org

The Woodlands Gulf Coast Chapter

Annual Golf Classic Tournament

Cypresswood Golf Course

petegarcia@usmcocgc.org

Southwest Chapte. Dallas, TX

Global Fusion-China

Sambuca, Dallas

swusmx@netzero.com

Northwest Chapter - Seattle, WA

Breakfast Network Business Meeting

Columbia Tower Club

mwanless@usmcocnw.org

Southwest Chapte. Dallas, TX

Bs Trip El Paso/ juarez,Mx

Dallas-El Paso-MX

swusmx@netzero.com

Guanajuato Chapter

Responsabilidad Social Empresarial II (nivel avanzado)

instalaciones CNEC, León, Gto

splopez88@gmail.com

23 y 24 25 25 y 26 30

PLACE

FOR FURTHER INFORMATION

OCTOBER / OCTUBRE CHAPTER

EVENT

DATE

Guanajuato Chapter

Responsabilidad Social Empresarial II (nivel avanzado)

Instalaciones CNEC, León, Gto

splopez88@gmail.com

Northeast Chapter. New York, NY.

Energy Reform: Financing & Investment

Skadden, Arps, NYC

212 417 4702 events@usmcocne.org

Michoacan Chapter. Morelia, Mich.

Meeting of Social and Economic Development Council

State Senate Building

nick.ortiz@usmcoc.org

Michoacan Chapter. Morelia, Mich.

Meeting with State Development Secretary

State Development Office

nick.ortiz@usmcoc.org

Northeast Chapter. New York, NY.

Mexico Business Investment Forum at NASDAQ

Nasdaq QMX, NYC

212 417 4702 events@usmcocne.org

California Pacific Chapter. Los Angeles, CA.

“16 Annual Mexico Economic Review and Political Outlook 2014”

Luxe Hotel on Sunset Blvd.

310-598-4188

Southwest Chapte. Dallas, TX

Guanajuato, Mx Bs Trip

Dallas to Leon, MX

swusmx@netzero.com

The Woodlands Gulf Coast Chapter

Houston Dynamos

BBVA Houston Dynamos Stadium

petegarcia@usmcocgc.org

Michoacan Chapter. Morelia, Mich.

Meeting with State Planning Secretary

State Planning Office

nick.ortiz@usmcoc.org

California Pacific Chapter. Los Angeles, CA.

North America Manufacturing Partnership Trade Mission to Tijuana event organized by the US Commercial Service, DEITAC and CITD

22 y 23

Tijuana Grand Hotel

310-598-4188

Michoacan Chapter. Morelia, Mich.

Meeting with the regional office of the development council

Michoacan Chapter Office

nick.ortiz@usmcoc.org

Northwest Chapter - Seattle, WA

Breakfast Network Business Meeting

Columbia Tower Club

mwanless@usmcocnw.org

8 y 11

PLACE

FOR FURTHER INFORMATION

NOVEMBER / NOVIEMBRE

UPCOMING EVENTS / PROXIMOS EVENTOS

CHAPTER

EVENT

DATE

Michoacan Chapter. Morelia, Mich.

Meeting Point. Foreign Trade Match Making

5y6

Morelia, Michoacan

nick.ortiz@usmcoc.org

California Pacific Chapter. Los Angeles, CA.

Seventh Celebration of the International Trade Community in Los Angeles

Consulate of Mexico

310-598-4188

California Pacific Chapter. Los Angeles, CA.

Third Baja California Investment Forum 2014

Bonaventure Hotel

310-598-4188

Northwest Chapter - Seattle, WA

Breakfast Network Business Meeting

Columbia Tower Club

mwanless@usmcocnw.org

PLACE

FOR FURTHER INFORMATION

DECEMBER / DICIEMBRE CHAPTER

EVENT

DATE

PLACE

FOR FURTHER INFORMATION

California Pacific Chapter. Los Angeles, Ca.

Board of Director’s meeting

USMCOC Offices located at 1800 Century Park East Suite 300, Los Angeles, CA 90067

310-598-4188

Northwest Chapter - Seattle, WA

Breakfast Network Business Meeting

Columbia Tower Club

mwanless@usmcocnw.org