 |
|
|
 Business News | August 2006 
Fox Speaks on Mexican Petroleum
 Presidency of the Republic
| Mexico is introducing new directives for the maquiladora manufacturing industry that are expected to revitalize the country's main export sector and make it more globally competitive.
See story below. (AP/Gregory Bull) |
During the 41st Anniversary of the Mexican Petroleum Institute (IMP), and according to Luis Ramírez Corzo, Director General of Petróleos Mexicanos (PEMEX), President Vicente Fox stressed that his administration’s commitment to the petroleum sector is reflected in the investments made over the past six years which means that, after 30 years, the next administration will have a strong industry with a future, which will serve as the best lever for the country’s development.
President Fox pointed out that between 2001 and 2005 his administration invested a total of US$6.8 billion, as a result of which 127 oilfields were discovered, the number of wells operating rose while the restoration rate of reserves more than doubled, from 14 Percent during the past decade to 59 percent at the end of last year. This administration’s goal is to promote development in Mexico and raise this figure to 75 percent.
The president, who was also accompanied by Energy Secretary Fernando Canales Clariond, added that during this government, investments rose to US$59.4 billion, equivalent to an average of US$9.9 billion dollars a year, meaning that Mexico attracted three times more than it had done during the previous decade.
The increase in resources allocated to this sector, he explained, was reflected in improvements to the National Refining System, which increased the volume and proportion of heavy crude, from 33 percent in 2002 to 42 percent at the close of 2005.
Addressing an audience of petroleum industry employees, President Vicente Fox underlined the fact that IMP is an example of how science and technology are at the service of Mexico, since they are an example of excellence in applied research.
Through their research, he explained, they found solutions to the problems and challenges of the petrochemical industry, as well as achieving optimal performance in hydrocarbons and their byproducts.
The president underlined the fact that petroleum is and will continue to belong to Mexico and all Mexicans, and that this should not be doubted.
[Regarding] the Mexican petroleum industry, President Fox invited the IMP community to continue to display the same enthusiasm it had shown during its 41 years of existence.
He reminded the audience that the 21st century poses great challenges and requires new, better technologies that will enable the nation to make progress in its energy security and environmental protection.
Presidency of the Republic, August 15, 2006, Mexico City – Presidencia de la República translation
Fox Decree May Revitalize Maquiladora Industry
Diane Lindquist - Union-Tribune
Mexico is introducing new directives for the maquiladora manufacturing industry that are expected to revitalize the country's main export sector and make it more globally competitive.
At a meeting yesterday of the Tijuana Maquiladora Industry Association, a federal official offered an overview of a new “maquiladora decree” that President Vicente Fox is expected to sign in October at the industry's annual convention in Cancun.
“We want to change the image of the industry,” said Maria del Rocio Ruiz Chávez, undersecretary of industry and commerce in Mexico's Economic Secretariat. “We want to send the message that we can do everything here in Mexico.”
The sweeping decree was created in response to the severe three-year contraction of the industry in the early 2000s that saw a fifth of the mostly foreign-owned factories close or move to cheaper locales.
While an economic downturn in the United States, where most maquiladora products are sold, kindled the contraction, Mexico's sluggishness in creating a new operating system as mandated by the North American Free Trade Agreement fueled the exodus.
The decree is a major revamping of the program that eventually was instituted. It is geared toward addressing many of the issues that have prompted foreign manufacturers to reject Mexico in favor of countries such as El Salvador, Guatemala, Malaysia and, especially, India and China.
After NAFTA, growth in the maquiladora industry propelled Mexico into the top ranks of the world's manufacturing countries. Current production – at more than $112 billion – accounts for 70 percent of the country's manufactured exports.
The new measures include extending tax incentives to more manufacturers, cutting red tape and introducing electronic filing of paperwork.
Most significant is that the decree opens the program to a variety of foreign and domestic businesses.
Domestic manufacturers that have been relegated to a separate regime called Pitex that does not offer many of the tax incentives bestowed upon foreign manufacturers are now being folded into the maquiladora program with all its special benefits.
As a result, Ruiz said, the number of operators will more than double, and they will account for 85.4 percent of all manufactured exports.
“We are keeping the name. They all will be called maquiladoras,” she said. “Everybody around the world is used to the name maquiladora.”
The decree also brings suppliers into the sector. And it allows original equipment manufacturers to outsource manufacturing or service activities without losing the advantages of operating under the maquiladora system as in the past.
In addition, several measures aim to stimulate the creation of new maquiladora businesses, either by easing the relocation of suppliers such as Asian and U.S. companies in television and auto manufacturing, or by encouraging Mexican entrepreneurs to start their own operations.
Particular emphasis has been put on easing and stimulating technological advancement.
“We are seen as a manufacturing industry, but they don't think we can provide technological input and added value,” Ruiz said. “They always ask, 'Why Mexico? Why not Asia?' Here we can offer the same cost, better quality, and we are nearer the U.S. market.”
Alberto Arce, Tijuana Maquiladora Industry Association president, predicted the changes will bring more investors to Baja California.
“The decree signals the outside world that we are stronger and a simpler place to operate, and that should make us more attractive,” he said. “Every month, six to eight companies come to Baja California looking to locate here. Only three or four do, but still that's a good rate.”
Jesús Calleros, a Tijuana maquiladora executive who is expected to take the reins of the national association in October, praised the decree.
“It's very good news for our industry,” he said. “This will give us a certainty. We think this will permanently reverse the losses we suffered. We have regained what we lost and now we have added to that number.”
Changes to the maquiladora decree, however, are mandated by the president, not passed into law by Congress. And there is no certainty with the Mexican presidential race still undecided that the next administration will sanction the new operating system.
“That is our concern. We are waiting for the official announcement of the president,” Calleros said. “Still, we expect whoever takes office to follow these rules.”
Diane Lindquist: (619) 293-1812; diane.lindquist@uniontrib.com |
| |
|
Vallarta Weddings
Tell a Friend
Site Map
Print this Page
Email Us