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NEWS
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 Over 150 Auto Industry executives will attend MEXICONOW Conference
Hermosillo, Mexico - After the success achieved during the first. Mexico's Auto Industry Conference in September 2005, over 150 auto industry executives will attend the seminar Mexico's Auto Industry Conference in this city on March 8-10 at the Fiesta Americana Hotel.
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FDI to reach US$18 billion
The Ministry of the Economy ruled out any effects on Foreign Direct Investment - which this year. will add to US$18 billion - due to the elections, insecurity problems and the Maria Isabel Sheraton Hotel scandal.
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We have no plans to close factories in Mexico: Ford
Mexico City - Ford, the US automotive company, is not considering closing any of its three plants in Mexico, nor will there be jobs cut, in spite of the restructure taking place in the USA, Louise Goeser, the Company's President in Mexico, said today.
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Nissan Mexico forecasts more exports
This year Nissan Mexico is planning to export 170 thousand units to the United States, Canada and Latin America, which will mean increasing production by 10%, according to Nissan Mexicana's new President, Shoichi Miyatani. Meanwhile, domestic sales will stay in the same level as the previous year, 234 thousand 932 units, and Nissan will therefore keep a 21% share of automobiles market.
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Mall to invest US$450 million in Campeche
Mall, a Spaniard real estate company, set last Friday the corner stone of a tourism project that includes a golf course, 2,500 apartments and 500 hotel rooms, with an estimated value of US$450 million in the State of Campeche (east). Located 12 miles away from Ciudad del Carmen, Campeche Playa Resort is the first huge tourism infrastructure in the Gulf of Mexico, according to Governor Jorge Carlos Hurtado, in the presence of President Vicente Fox.
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Italian businessmen coming to Mexico
Rome - A mission of Italian businessmen will visit Mexico from March 19 to the 25th to analyze collaboration possibilities in the aeronautic and metal-mechanics industries, Bancomext's representative in Italy informed.
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Mexico's Electronics Supply Chain Organization to sponsor Mexitronica
Guadalajara - Ernesto Sanchez Proal, president of CADELEC, says his organization will sponsor, promote and actively participate in Mexitrónica 2006, scheduled to take place Tuesday through Thursday, October 10 through 12, at Expo Guadalajara. CADELEC, a not-for-profit organization, was formed in 1997 by the leading electronics companies in Mexico.
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ARTICLE OF THE WEEK
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By Samuel Peña Guzman
Foreign Investment Coordinator of Nuevo Leon
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 Last week I had the pleasure of meeting a representation from the State of Louisiana headed by Louisiana's Minister of Economic Development, Michael Oliver. The representation held a commercial mission in several Mexican states, actively promoting their State and most of all looking for new investment. Exactly what I do, but here instead of there.
There is no doubt that it was quite interesting to share both states' mutual interests and observe in awe Louisiana's proactive, even aggressive spirit - in the best sense of the word. Louisiana is the largest steel importer in the United States, as we are all aware, said State was harshly affected by Rita and Katrina hurricanes, which practically razed to the ground Louisiana's south, including beautiful New Orleans. According to data provided by Mr. Oliver, Louisiana lost more than 211,000 homes, not to mention more than 100,000 automobiles also lost due to this destructive act of Mother Nature. There is no doubt that these hurricanes were devastating for Louisiana.
There is an old saying, "No one learns in some else's head". However the experience shared by Louisiana State officers could give us a lesson: A striving spirit that reacted before these events is something worth learning.
 Louisiana Government created a new agency -Louisiana Recovery Authority- which purpose is precisely to build again each and all of the zones damaged by the hurricanes, so that their land is productive again. Together with this, the State created a quite aggressive incentives package for investors, which, to tell the truth, greatly exceeds those offered by almost any State in Mexico.
These acts of God undoubtedly led Louisiana authorities to implement the incentives package that will call the attention of far more than one company.
For each US Dollar paid by the company to employees, Louisiana authorities will reimburse 10%. Financing programs for small companies are a lot more aggressive than those in developing countries, such as Mexico, Louisiana ranks as the ninth state in foreign investment in the United States, receiving assets over US$21 billion. A Monterrey industrial group has even transferred operations to Louisiana due to the high incentives granted by the State authorities.
 I think that if states in Mexico adopted much more aggressive incentive packages than those being offered, or at least equaled those of Louisiana, we would probable achieve a higher foreign investment flow. Unfortunately, incentives offered by most states in Mexico are quite limited. For this, and other factors, Mexico is practically loosing the battle to its main competitors in Asia, mainly China.
Why should we wait for an act of God or a financial crisis to offer more and better incentive to potential investors? In Mexico, after the financial crisis in December 1994, the Congress was forced to make some amendments to the law to allow for foreign capital to have a share larger than 50% of banks assets. Practically, banks had to wait to be at the verge of bankruptcy to see the legislation amended. Maybe a lot of economic losses could have been prevented if from the very beginning foreign capital were allowed to hold more than 50% of bank assets. We paid a high price for this lesson.
It is no secret that states in Mexico are fighting a strong battle among each other to attract investment to each state. In some cases - and once again this is no secret - some states have made offers high above the "standard incentives". Why not increasing standard incentives in a more aggressive way? Usually, as mentioned above, incentives are rather small and limited. Maybe a careful analysis of the benefits brought by foreign investment must be made: mainly new jobs and economic reactivation.
People, institutions and countries, we all suffer from the same fault: implementing public policies as a reaction rather than prevention; and it would be even better if we implemented planned policies. These new incentives being offered by Louisiana are definitely a reaction; however, for purposes of our own incentives package, those offered by Louisiana could be a model to be copied by many states in Mexico, learning a lesson from what happened there.
Hector Samuel Peña LL.M, MPA Currently works as a Foreign Investment Coordinator for the State Government of Nuevo León, he has LLM Masters in Law from American University, Washington, College of Law, and a Masters in Public Administration from the George Washington University and has advised foreign companies who are expanding operations in to Mexico. He is also a professor at the State University of Nuevo Leon in Monterrey, Mexico and a Member of the Consejo Mexicano de Asuntos Internacionales COMEXI.
The point of view is strictly from the author and does not represent the vision on any of the author institutions relationships.
He can be reached at: samuel.pena@mexicoglobal.com
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MEXICO'S WEEKLY HEADLINES
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| » Mexico received a DFI of US$17,804 million during 2005 |
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| » Airbus' suppliers will meet in Chihuahua |
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| » Mexico's trade registers surplus of US$398 million |
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| » VW will offer three new models in Mexico |
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| » IMEF considers an increase of the 7.5% in the familiar remittances in Mexico |
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EVENTS
2006
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February-March
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EXINTEX 2006
TECHNOLOGY EXPO
Puebla, Pue., Mexico
28 Feb. - 3 Mar.
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