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MARCH 2006 EDITION ARCHIVE
Business & Politics OutlookFebruary 19th marked the end of the first five months of Mexico's presidential campaigns, which will culminate in the July 2nd election to elect a new chief executive, 500 federal congressional deputies, 128 senators and 802 local officials in 10 different states. According to the most recent polls, if the election were to be held today, Andres Manuel Lopez Obrador of the Democratic Revolutionary Party (PRD) would receive 39.4% of the vote; Felipe Calderon of the National Action Party ... [Read More]
- No other presidential election that has taken place in Latin America this year is more important to the United States than the current Mexican presidential election, said John D. Negroponte, the U.S. Director of Central Intelligence. Negroponte, who just over a month ago caused a minor scandal in Mexico for offering the view that Mexico is among those countries with a weak and vulnerable government, stated that he did not know how the southern border of the United States could be protected... [Read More]
- In Paris, France, a trial court has initiated a judicial proceeding against the brother of ex-Mexican president Carlos Salinas de Gortari, Raul Salinas, for the alleged crime of money laundering in French banks. During this trial, in which the accused will not attend, the ex-wife of Enrique Salinas will also be prosecuted (who was assassinated at the end of 2005), Adriana Lagarde.
- The exchange of debt carried out by the Mexican government on international exchange markets has reinforced positive expectations of foreign investors regarding Mexico. In accordance with the ENBI + index of JP Morgan, Mexico's Country Risk closed at 109 points, after this past Tuesday reaching its historic low of 95 points. However, it is expected that the close electoral contest and minor differences between local interest rates and those in the United States could generate potential... [Read More]
- PEMEX, the ninth largest petroleum company in the world, in 2005 earned its highest income ever, earning 86.1 billion dollars, which represented an increase of 16% over 2004, as a result of higher crude oil prices. Sales increased even though PEMEX reported a decrease in its crude oil production of 39,000 barrels per day, averaging 3.36 million per day. During the past year Mexican mixed crude oil increased to $40 dollars per barrel over $31.01 dollars in 2004, significantly higher than... [Read More]
Obligation to Register before the Federal Taxpayer Registry Applies to Shareholders or Owners of Mexican EntitiesIn accordance with the current Mexican Fiscal Code, foreign shareholders or owners of Mexican entities must obtain a Mexican federal taxpayer identification (RFC) from the Mexican Department of Finance and Public Credit (SHCP). Such foreign shareholders or owners of Mexican entities may avoid this registration requirement by presenting a special notice containing required information prior to March 31st of this year.
- On February 8, 2006, Mexico published in the Official Journal of the Federation a new Organic Products Law (OPL), which is designed to regulate the production, manufacture, sale, labeling, importation and exportation of raw materials, intermediate products, and final products labeled or marked as “organic.” With the enactment of the new OPL, these products must have a certification authorized by the Mexican Department of Agriculture, Ranching, and Rural Development, Fisheries and... [Read More]
- In the year 2005 the largest amount of foreign investment since 1980 was invested outside of Mexico, in accordance with balance of payments figures provided by the Banco de Mexico. The departure of dollars totaled $10.964 billion dollars, consisting of bank deposits or investments in foreign companies. Compared to 2004, this represents an increase or around 88%. Until this year, the greatest exit of funds from Mexico had been in 1995, during the Mexican economic crisis, when... [Read More]
Economic IndicatorsThe Mexican peso has maintained a stable position against the U.S. dollar. The current quoted exchange rate as of March 9, 2006 was $10.76 pesos per dollar.
- The Mexican Stock Exchange (BMV) closed on March 9, 2006 at 18,256 points.
- Interest rates continue to decline. The Average Interbank Interest Rate (TIEE) for a 28-day period was at 7.74%.