NAFTAWorks 2006

December   Dec06.pdf

v     New Maquila Decree

The Continuing with the strategy of reducing the transaction costs and promoting external trade, on November 1st, 2006, the Ministry of Economy published in the Federal Official Gazette Decree for the Promotion and Operation of the Manufacturing, Maquiladora and Exportation Services Industry (IMMEX), and is effective since November 13, 2006.

v     Success Stories

–       General Motors will expand its facilities in Silao, Guanajuato

–       Hyundai Motor Company, will install a truck and bus assembly plant in the State of Veracruz.

–       DHL presented its new airplane fleet that will operate in Mexico with an investment over US$ 12.8 million.

–       Natural Gas plant starts operating

v     Selected Readings

- Effects of Globalization on Labor's Share in National Income (Guscina, Anastasia. International Monetary Fund, December 2006)

-  Global Economic Prospects 2007: Managing the Next Wave of Globalization (Worldbank, December 2006)

v     State Profiles

- Tabasco

- Missouri

November   Nov06.pdf

v     Mexico continues to be a key trading partner for most of U.S. States.

The North America Free Trade Agreement (NAFTA) has expanded export opportunities across the United States. Newly released data shows that in the nine months of 2006, 43 out of 50 U.S. states had experienced growth through exports to Mexico.

v     Success Stories

–       Lear will invest US$15 million in Frontera, Coahuila

–       Pemex built the largest maritime platform in Mexico

v     Selected Readings

-What's Driving Investment in China?  (Barnett, Steven,  Brooks, Ray. International Monetary Fund, November 2006)

- Exchange Rate Risk Measurement and Management: Issues and Approaches for Firms (Papaioannou, Michael G. International Monetary Fund, November 2006)

v     State Profiles

- Durango

- Georgia

October Oct06.pdf

• Mexico implemented an import duties reduction plan.
  The Ministry of the Economy published a decree that lowers duties in 6,089 import tariff items on September 29, 2006.

• Success Stories

  - Union Fenosa to increase investment in Mexico.
  - Navistar produces a new model in Mexico.
  - Neapco LLC Chooses Saltillo Coahuila.
  

• Selected Readings

  - The Optimal Level of International Reserves for Emerging Market Countries: Formulas and Applications (Jeanne, Olivier ; Ranciere, Romain. International Monetary Fund, Working Papers, October 2006).
  - Measuring Competitiveness (Neary, J. Peter. International Monetary Fund, Working Papers, September 2006).

• State Profiles

  - Colima
  - Louisiana

September   Sep06.pdf

v     Mexico continues to be a key trading partner for most of U.S. States.

The North America Free Trade Agreement (NAFTA) has expanded export opportunities across the United States . Newly released data shows that in the first semester of 2006, 34 out of 50 U.S. states had experienced doble digit growth through exports to Mexico . Among these, 25 states have registered an increase of at least 20 percent in their sales to Mexico with respect to the same period in 2005 .

v     Success Stories

–       US$22 million was invested in expanding Honda’s operations in Mexico,                        where 1,400 direct jobs and 10,000 indirect jobs were created .

–       Windsor will open a motorcycle plant in Merida , Yuctan, supplying 200 direct and indirect jobs, with another plant to open within five years.

–       The Plextron Corporation has entered a 3-year contract with the Offshore Group, and will open a plant in Saltillo , Coahuila, with 50-100 direct jobs.

v     Selected Readings

-Making Globalization Work  (Joseph E. Stiglitz . W. W. Norton , September 2006)

- World Economic Outlook: Financial Systems and Economic Cycles (International Monetary Fund, September 2006)

v     State Profiles

-Nayarit

-Pensylvania

August   Aug06.pdf

v     US and Mexico Sign Deal on Sweeteners

The United States and Mexico signed a deal in July to open the markets for sugar and sweeteners.  In the agreement, Mexico will be able to export larger amounts of sugar to the U.S. in 2006 and 2007, and the market will be completely open in 2008.  In exchange, the U.S. will have equal privileges for the export of high-fructose corn syrup.  The full text of the agreement is provided.

v     Success Stories

–       Kenworth Mexicana has invested US$78 million over the last 14 months, which has allowed Mexico to receive $5 billion in direct investment, a number that will climb to $20 billion by the end of the year.

–       Bridgestone invested US$81 million to build a black coal processing plant in Altamira Port, Tamaulipas, that will offer 100 jobs.

–       Honeywell Aerospace will invest US$80 million into a plant in Chihuahua that will hire 350 specialized technicians and workers.

–       Mahle will invest US$20 million in its Puebla plant, which offers 130 direct and 300 indirect jobs, to ensure its permanence over 10 years.

–       Celestica will invest MEP$500 million into its Apodaca, Nuevo Leon , plant to increase capacity, adding 1,000 new jobs.

v     Selected Readings

–       Accelerating the Globalization of America: The Role for Information Technology (Mann, Catherine L. Institute for International Economics, June 2006)

–       Delivering on Doha: Farm Trade and the Poor (Elliott, Kimberly Ann. Institute for International economics, July 2006)

v     State Profiles

–       Virginia

–       Hidalgo

July      Jul06.pdf

v     Mayan Organic Coffee Growers

Indigenous farmers in the state of Chiapas have formed the Indigenous Ecological Federation of Chiapas.  They export certified organic coffee beans, which sell for more than regular coffee in world markets.  The Inter-American Development Bank in Mexico has helped them develop their own processing plants to improve profits and sales.

v     Success Stories

–       MD Helicopters has invested US%15 million in Apodaca to provide helicopter fuselages to North and South America, creating 25-50 jobs.

–       Flextronics will invest $US20 million to open a third Mexican plant in Ciudad Juarez that will employ 1,740 initially and 5,000 in three years.

–       Michelin responded to growing demand by creating a retread plant that will employ 120 to join the Michelin headquarters in Querétaro.

–       General Motors will open a plant in Logistik Park in San Luis Potosí with an investment of US$650 million, more than half the state’s 2006 budget.

v     Selected Readings

–       World Trade Review (Irwin, Douglas A. World Trade Organization and Cambridge University Press, July 2006)

–       Technology, Adaptation, and Exports: How Some Developing Countries Got It Right (Vandana, Chandra. World Bank Press, July 2006)

–       Anti-Corruption in Transition 3: Who Is Succeeding…and Why? (Anderson, James and Gray, Cheryl. World Bank Press, July 2006)

–       Can Good Economics Ever Be Good Politics?: Case Study of India’s Power Sector (Lal, Sumir. World Bank Press, June 2006)

v     State Profiles

–       Puebla

–       Vermont

June    Jun06.pdf

v     Mexico’s Electric and Electronic Industries

The electronics and electrical industries are two of Mexico ’s larges export markets. To support them, many Sectoral Promotion Programs (PROSECs) allow certain goods to be imported at preferential tariff rates. In addition, Mexico ’s entry into the ITA-Plus program has eliminated duties on the factors of production in these markets.

v     Success Stories

–       Saint-Gobain Vitrage, the glass manufacturer, will invest $100 million to build a third flat glass production line in Cuautla, Moresol.

–       Industrias Monterrey will invest $120 million to increase its annual steel production capacity by 300,000 tons by summer of 2007.

–       Behr America will build an automotive manufacturing plant in Saltillo , Coahuila. The $13 million dollar factory will reach full production with 250 employees by 2007.

v     Selected Readings

–       The Euro’s Challenge to the Dollar: Different Views from Economists and Evidence from COFER (Currence Composition of Foreign Exchange Reserves) and Other Data (Lim, Ewe-Ghee. International Monetary Fund, Working Papers, June 2006)
http://www.imf.org/external/pubs/ft/wp/2006/wp06153.pdf

–       The Impact of Trade on Wages: What If Countries Are Not Small? (Saito, Mika and Tokutsu, Ichiro. International Monetary Fund, Working Papers, June 2006)
http://www.imf.org/external/pubs/ft/wp/2006/wp06155.pdf

–       Poverty and Social Impact Analysis of Reform: Lessons and Examples from Implementation (Coudouel, Aline; Parenostro, Stefano; and Dani, Anis A. World Bank Press, June 2006)
http://siteresources.worldbank.org/INTPSIA/Resources/490023-1120845825946/PSIACASESTUDIES_BOOK.pdf

–       U.S. Inflation Dynamics: What Drives Them Over Different Frequencuies? (Balakrishnan, Ravi and Ouliaris, Sam. International Monetary Fund, Working Papers, June 2006)
http://www.imf.org/external/pubs/ft/wp/2006/wp06159.pdf

–       Global Development Finance 2006: The Development Potential of Surging Capital Flows (World Bank Press, June 2006)
http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTDECPROSPECTS/EXTGDF/EXTGDF2006/0,,contentMDK:20925051~menuPK:2344934~pagePK:64167689~piPK:64167673~theSitePK:2344908,00.html

v     State Profiles

–       Tabasco

–       Utah

May     may06.pdf

v     The Connectivity Zone, a New Logistic Platform Project in Durango, Mexico

Mexico ’s northern part is rich in resources as well as industry. In addition, its location gives it prime access to both Mexican and foreign markets. To take advantage of this, businessmen have set up a Connectivity Zone in Durango that focuses on merchandise distribution.

v     Success Stories

–       KMG Chemicals, Inc., has completed the production of a new pentachlorophenol that will increase production by at least thirty percent.

–       The Steris Corporation will shift production operations from Erie, Pennsylvania, to the Guadalupe Industrial Park in Monterrey.

–       The Toyota factory in Baja California will expand Tacoma truck production capacity by 20,000 and hire 200 new workers by 2008.

v     Selected Readings

–       World Economic Outlook: Globalization and External Imbalances (International Monetary Fund, April 2006)
http://www.imf.org/external/pubs/fl/weo/2006/01/index.htm

–       World Development Indicators 2006 (World Bank, April 2006)
http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,contentMDK:20899413~pagePK:64133150~piPK:64133175~theSitePK:239419,00.html

–       Little Data Book 2006 (World Bank Press, April 2006)
http://publications.worldbank.org/ecommerce/catalog/product?item_id=5367270

v     State Profiles

–       San Luis Potosi

–       South Carolina

April    Apr06.pdf

v     Mexico is a Growing Export Market for the U.S.

Since NAFTA went into effect, most U.S. states have increased their exports to Mexico.  The country represents the largest market for states with big economies, such as California and Texas.  Smaller states list Mexico as one of their top two export destinations.

v     Success Stories

–       Since Nextel came to Juarez in July 2005, it has created more than 650 jobs and serviced over 882,600 customers.

–       Since Nextel expanded to Reynosa in June 2005, it has invested over $50 million and generated more than 1,800 jobs.

–       United Plastics Group, Inc., recently opened a second manufacturing plant in Monterrey due to rising demand for automotive products.  UPG has seen record earnings and high growth from its plants in Mexico.

v     Selected Readings

–       Macroeconomic Effects and Policy Challenges of Population Aging (Tamirisa, Natalia T. and  Farquee, Hamid. International Monetary Fund, Working Papers, April 2006)
http://www.imf.org/external/pubs/ft/wp/2006/wp0695.pdf

–       Global Financial Stability Report: Market Developments and Issues (International Monetary Fund, April 2006)
http://www.imf.org/external/pubs/ft/gfsr/2006/01/index.htm

v     State Profiles

–       Querétaro

–       Rhode Island

March      Mar06.pdf

v     NAFTA Supports Jobs for U.S. Workers

Since the implementation of NAFTA, and Mexico has become the U.S.’s second largest trading partner, behind only Canada.  Goods and services for Mexico account for one out of every ten jobs in the U.S.

v     Export and Job Opportunities Grow Across the U.S.

Since 1993, 49 U.S. states have seen a growth in exports to Mexico . Currently, twenty states record over $1 billion in sales to Mexico annually.

v     Success Stories

–       Omnilife will invest $60 million to build maquiladoras in Tlaquepaque, Jalisco.  The new plant will be the largest food supplement manufacturing plant in the world.

–       Mitsuba, the Japanese producer, has invested $6 million to open an automotive parts plant in Nuevo Leon.  The factory will employ 100 workers when it opens in late 2006.

–       Kopf, a German company, is building a $15 million galvanization plant in Nuevo Leon.

–       EMD is opening another high technology manufacturing plant in Ciudad Juarez.  The $6 million investment will employ another 2,000 workers.

v     Selected Readings

–       Emigration and Wages in Source Countries: Evidence from Mexico (Mishra, Prachi. International Monetary Fund, Working Paper, March 2006)
http://www.imf.org/external/pubs/ft/wp/2006/wp0686.pdf

–       World Crude Oil Markets: Monetary Policy and the Recent Oil Shock (Krichene, Noureddine. International Monetary Fund, Working Papers, March 2006)
http://www.imf.org/external/pubs/ft/wp/2006/wp0662.pdf

v     State Profiles

–       Oklahoma

–       Aguascalientes

February    Feb06.pdf

v     Competitiveness Growth in Mexican Ports

Over the last four years, Mexican ports have significantly improved efficiency to become internationally competitive.  In addition, the government is working to build multi-modal corridors to connect industrial centers.  The corridors will increase competitiveness in Mexican markets by lowering transportation costs for producers.

v     Mexico-US Annual Trade Report    

January 2006 marks the twelfth anniversary of the launching of the North American Free Trade Agreement. NAFTA has helped the U.S. and Mexico strengthen their trade ties.

v     Modifications to Mexican Trade Law to Strengthen Transparency

On January 24^th, some modifications were made to the Foreign Trade Law to promote productive sectors, facilitate electronic coordination, and allow public feedback on decision.

v     Mexican Exports of Orange Juice

Orange juice exports reached a record high in 2005, going primarily to the U.S., Germany, and the Netherlands.  NAFTA continues to expand the volume of juice exports to the United States.

v     Success Stories

–       Toto, the Japanese toilet manufacturer, is building a $37 million factory in Nuevo Leon that will employ 250 workers and export 3,000 toilets to the United States every month by 2008.

–       Arrow International, a producer of medical supplies, has opened a third plant in Chihuahua City , which will employ 450 workers by 2007.

–       Cessna Air Craft and ITT Industries will expand to create 850 new jobs in the state of Chihuahua.

–       International Rectifier in Tijuana was awarded the Joint Army Navy JANTX and JANTXV quality ratings by the US Department of Defense for discrete power semiconductor devices.

v     Selected Readings

–       Trade and Environment Review, 2006 (United Nations, February 2006)           
http://www.unctad.org/Templates/WebFlyer.asp?intltemID=3725&lang=1

–       Trade Inequality and the Political Economy of Institutions (Do, Quy-Toan and Levchenko, Andrei A. International Monetary Fund, Working Papers, February 2006)
http://www.imf.org/external/np/res/seminars/2005/arc/pdf/do.pdf

v     State Profiles

–       Quintana Roo

–       North Carolina

January   Jan06.pdf

v     “Exportanet”, a Mexican Program that Introduces Your Company to Mexican Suppliers         

A new program by the Banco Nacional de Comercio Exterior (Bancomext) called Exportanet keeps an online database of all companies worldwide looking purchase Mexican products and services.  Nearly three thousand Mexican companies use Exportanet to find buyers for their goods.

v     Success Stories

–       Mall, a Spanish real-estate company, is prepared to invest $450 million in Campeche for tourism, generating 2,000 jobs.

–       Takata Corporation will start producing airbags for automobiles at a plant in Torreón that will employ 1,500 people by 2009.

–       Laird Technologies will open a facility in Reynosa to provide equipment for electromagnetic shielding, thermal management, and wireless communication to the Mexican market.

–       Trumpf, a German metal-mechanics manufacturer, will invest $10 million in a plant in Apocada, Nuevo Leon.

v     Selected Readings

–       How Does Trade Openness Influence Budget Deficits in Developing Countries? (Combes, Jean-Louis and Saadi-Sedik, Tashin. International Monetary Fund, Working Papers, January 2006)
http://www.imf.org/external/pubs/ft/wp/2006/wp0603.pdf

–       The Implications of Trade Barriers for Sectoral Diversification and Macroeconomic Stability in Developing Economies (Srour, Gabriel. International Monetary Fund, Working Papers, February 2006)
http://www.imf.org/external/pubs/ft/wp/2006/wp0650

v     State Profiles

–       New Jersey

–       Sinaloa

NAFTA works 2005

December   Dec05.pdf

v     The maquiladora industry recovers its dynamic character 

During 2005, the export-oriented maquiladora industry (EMI) in Mexico has recovered its dynamic character. Although the recovery has not been completed since the levels of jobs generated and the number of firms from the year 2000 have not been reached, sales in the foreign market have increased more than 10 percent.

v     Supporting technology based business        

Mexico’s Ministry of the Economy (Secretaría de Economía) designed the Business Accelerator Program to support technology-based Mexican firms in the process of introduction of their technology, products and services to the American market.

v     Selected Readings

–       International Migration, Remittances, and Brain Drain

      Edited by Çaglar Özden , Maurice Schiff  (World Bank, October 2005)

–       Global Economic Prospects 2006: International Remittances and Migration (World Bank, November 2005)

v     State Profiles

                  -Zacatecas

                  -Nebraska

November    Nov05.pdf

v     Foreign Direct Investment and Competitiveness in Mexico

            In 2004 less developed countries increased their influx of foreign direct investment by           40%, while in developed counties there was a decrease of 14% in the inflow of this form   of capital.  Although Mexico is one of the top FDI receptors of the less developed      countries, some experts think that foreign investors are less attracted to invest in Mexico.

v     SELECTED READINGS

            - Clusters as a Driving Engine for FDI (Etienne B. Yehoue. International Monetary Fund, October 2005)

            https://www.imf.org/external/pubs/cat/longres.cfm?sk=18495.0

            - Safeguards and Antidumping in Latin America Trade Liberalization: Fighting Fire with        Fire. Edited by j Michael Finger, Julio J. Nogues (World Bank, October 2005)

v     STATE PROFILES

            - Tamaulipas

            - Montana

October    Oct05.pdf

v     NAFTA: The Friendship bridge between the United States and Mexico

            Relations between the United States and Mexico have been strengthening not only   because of NAFTA but also because they are neighbors. In September 2005, Mexico    helped its northern border by sending over 150 troops, “Papaloapan”, food, and machinery to support aid and reconstruction efforts to victims of Hurricane Katrina.

v     SELECTED READINGS

            - World Development Report 2006: Equity and Development (World Bank, September      2005)

            - NAFTA Revisited: Achievements and Challenges (Gary Clyde Hufbauer and Jeffery J.      Schott. Institute for International Economics, October 2005)

v     STATE PROFILES

            - Baja California Norte

            - Maine

September   Sep05.pdf

v     39 out of 50 U.S. States Have Increased their Exports to Mexico

            Trade between the United States and Mexico exceeded USD$140 billion, up from a level   of USD$100 billion from the same period of the year 1993.  Releases data shows that in            the first semester of 2005, 39 out of 59 U.S. states had experienced growth from            exporting to Mexico. Of those, 18 states have registered an increase of at least 20% in            their sales.

v     SELECTED READINGS

            - Healthy Competition: What’s Holding back health care and How to Free It (Michael F.     Cannon. Cato Institute, September 2005).

            -World Economic Outlook: Building Institutions (International Monetary Fund,        September, 2005)

v     STATE PROFILES

            - Coahuila

            - Iowa

August     Aug05.pdf

v     Mexico launched Regulations Improvement Actions for 2005-2006

            President Vicente Fox Quezada announced 36 regulation improvement actions hoping to     strengthen competition and perk up business environment in Mexico.  The actions        consist of enhancing External Trade, Health, Labor, Transportation, telecommunications,             Finance, Energy…etc.

v     SELECTED READINGS

                  - Doing business in 2006: Creating Jobs (World Bank, September 2005).

                  - A Global View of the U.S. Investment Position (Andrew Swiston. International     Monetary Fund, September 2005)

                  https://www.imf.org/external/pubs/cat/longres.cfm?sk=18524.0

v     STATE PROFILES

            - Chihuahua

-         Hawaii

July     Jul05.pdf

v     ValuNet in Mexico

            The system was developed by the Swiss     Corporation (SGS) and it allows Mexico’s        General Customs Administration to manage valuation risks and increase the fulfillment             of the import regulations. It researches the price of the imported merchandise through   the SGS international web in more than 140 countries.

v     SELECTED READINGS

            -Remittances: Development Impact and future Prospects.  Edited by Samuel Munzele          Maimbo, Dilip Ratha (World Bank, June 2005).

            -DR-CAFTA: Challenges and Opportunities for Central America (World Bank,      June2005).

            http://lnweb18.world.org/LAC/LAC.nsf/ECADocByUnid/3D4B4F71AE8214FE852570            2D00710E58?Opendocument

v     STATE PROFILES

            -Sonora

                  -District of Columbia

June     Jun05.pdf

v     The Growth Potential of the Mexican Pharmaceutical Industry

            Mexico has grown to be the largest consumer of pharmaceuticals in Latin America, ranking as the 9^th largest consumer world-wide.  Mexico has become one of the most           important locations for production facilities, which target not only domestic markets     but also exporting to Europe and Latin America.

v     SUCCESS STORY

-In Mexico City, Merck, the German-based pharmaceutical company known for Vioxx, created a 15% increase in production, produced higher quality products, and intends to invest in the factory $4 million per year.

-Promoting Mexican engineering skills and talent, the 45 year old Kenworth Trucking Plant in Baja California plans a completed expansion by 2006, creating 600 positions.

May    May05.pdf

v     Tequila, a Distinctive Product in the US Market

            Tequila accounts for 13.4% of the total volume of US spirit beverage imports in 2004.         The preference of the most commonly known tequila mix (margarita) and the   increasing         appreciation for premium tequila, helped Mexican exports of Agave tequila to the US            increased by 128% between 2001 and 2004. 

v     SUCCESS STORY

            -An eminent figure amongst Hispanic-geared “out of the house entertainment”          company, CIE is looking to build 10 more amusement parks similar to that of     Wannado,        based in Florida

                  -As a result of NAFTA, the growing industry of manufactured medical equipment    strengthens drawing attention for foreign direct investment in Mexico. Wilson            Greatbatch Technologies, producer of pacemaker components,     will open first    plant in Tijuana, Baja California and begin operations in 2006. 

v     SELECTED READINGS

-The End of Poverty:  Economic Possibilities for Our Tie (Jeffery Sachs, Penguin Press HC, March 2005)

-World Economic Outlook: Globalization and External Imbalances (International Monetary Fund, April 2005)

http://www.inm.org/external/pubs/ft/weo/2005/01/index.htm

v     STATE PROFILES

- Oaxaca

April    Apr05.pdf

v     NAFTA Supports Jobs for U.S. Workers

            New business and job opportunities have resulted thanks to the creation of NAFTA.           More than 1 in every 10 jobs is employed in activities related to exports that go to Mexico

v     SUCCESS STORY

            The growing maquila industry in Yucatan has created 3,532 new jobs in the last year            (as        of February 2005). Six out of every ten jobs created in Yucatan last year were   connected         to the maquiladora industry.

v     SELECTED READINGS

      -The Euro at Five: Ready for a Global Role? (Edited by Adam S. Posen. Institute for International Economics, April 2005)

      -Global Financial Stability Report:  Market Developments and Issues (International Monetary Fund, April 2005)

v     STATE PROFILES

                  -Yucatan

-         Alaska

March     Mar05.pdf

v     The North American Free Trade Agreement in 2005

            Nearly ¾ of the way through its implementation, NAFTA has created the world’s    largest trade bloc with a GDP of $13.8 trillion in 2004.  American farmers have        benefited greatly, exporting food and agricultural products throughout the NAFTA       region, reaching a record high level of $18.2 billion in 2004.

v     SUCCESS STORY

            Wyeth plans to increase milk production capacity by 110%, create 880 new jobs, and         benefit over 1,400 households through technological investments.

v     SELECTED READINGS

                  -International Trade Statistics 2004 (World Trade Organization, November 2004)

      -Annual World Bank Conference on Development Economics 2005, Europe: Are We on Track to Achieve the Millennium Development Goals?

v     STATE PROFILES

                  -Chiapas

February    Feb05.pdf

v     Mexico is still Latin America’s Prime Destination for FDI

            For a third year in a row, KPMG’s annual survey placed Mexico over: Brazil,         Argentina, Chile, and Venezuela, as the preferred country for new investments in the         region. Mexico also ranks number one in Latin America with the largest number of domestic companies becoming multinationals with market penetration in both North             and Latin America.

v     SUCCESS STORY

-Mexican companies are making giant strides and crossing the border.  COMEX came into the US market with US$400 million purchases in 2003.  Grupo Financiero BBVA Bancomer SA, purchased Texas-based Laredo National Bancshares Inc, for US$850 million.

            -Toyota Motor Manufacturing finally opened its first plant in Tijuana, Baja California            in February. To satisfy the growing demand of Hemi engines, DaimlerChrylser will    invest US$70 million is Ramos Arizpe plant. And the Japanese company Bridgestone       Corporation will invest US$220 million to install manufacturing plant in Nuevo             Leon.

v      SELECTED READINGS

      -The United States and the World Economy: Foreign Economy Policy for the Next   Decade (C. Fred Bergsten and the Institute for International Economics.  Institute for International Economics, January 2005)

            http://bookstore.iie.com/merchant.mvc?screen=PROD&Product_Code=338

      - Addressing the Challenges of Globalization:  An independent Evaluation of the World Bank’s Approach to Global Programs (Uma Lele. World Bank, January 2005)

            http://bookstore.iie.com/merchant.mvc?screen=PROD&Product_Code=380

v     STATE PROFILES

                  -Guerrero

January    Jan05.pdf

v     Thanks to NAFTA, 16 U.S. States have exports to Mexico that Exceeded US$ 1 billion in 2004

Over the last five years, eleven more US States have surpassed the $1 billion mark in registered sales with Mexico, totaling the number of states exceeding that mark to 16, as of 2005.  States like Maryland have increased their exports nearly 396% since 1993, making Mexico its fourth largest export market. 

v     PROSEC

            Covering more than 22 industries and over 6,000 products, Sectorial Promotion Programs (PROSEC), issued by the Ministry of Economy, is helping to maintain a competitive manufacturing industry. The most recent modification reestablished Most Favored Nation import duties to those prior to 1998.

v     SUCCESS STORY

            Home Depot acquired 20 home improvement stores in Mexico, fusing its position as            leading home improvement company in Mexico.

v     SELECTED READINGS

            -Mexico: Selected Issues (G. Meredith, E. Faal, V. Moissinac, M. Vera-Martin and                         Bulir. International Monetary Fund, December 2004)

                  http://www.imf.org/external/pubs/ft/scr/2004/cr04418.pdf

            -Dollar Adjustment: How Far?  Against What?  (edited by C. Fred Bergsten and John                      Williamson.  Institute for International Economics, November 2004)

v     STATE PROFILES

            -Indiana

                  -Baja California Sur