AMCHAM National Convention 2004.Mexico's Challenge: Politics, Growth and Competitiveness/Retos de Mexico: Politica Politica is the undergraduate journal of the Department of Political Science at the University of California, Berkeley. Politica solicits original student essays on topics broadly political. , Crecimiento y Competitividad
8 and 9 November 2004 / 8 y 9 de noviembre de 2004 Hotel Nikko Mexico, Salon Constelaciones
Keynote Speaker / Orador de Honor
C. Presidente Lic. Vicente Fox Quesada*
Introduction of President Fox / Presentacion del Presidente Fox
The Honorable Antonio O. Garza, Jr.
Ambassador of the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, to Mexico / Embajador de los Estados Unidos de Norteamerica en Mexico Honorary President / Presidente Honorario
Moderator / Moderador
Editorial Director / Director del Comite Editorial
"MEXICO'S CHALLENGE: VIEW FROM THE PRIVATE SECTOR" / "EL RETO RETO Review of Education and Training for Officers DE MEXICO: PERSPECTIVA DEL SECTOR PRIVADO"
Manuel Medina Mora MORA, In civil law. This term, in mora, is used to denote that a party to a contract, who is obliged to do anything, has neglected to perform it, and is in default. Story on Bailm. Sec. 123, 259; Jones on Bailm. 70; Poth. Pret a Usage, c. 2, Sec. 2, art. 2, n.
President / Presidente
Asociacion de Bancos de Mexico
PANEL: "MEXICO'S ECONOMIC GROWTH PROSPECTS: PERSPECTIVES FROM MEXICO AND BEYOND" / "PROSPECTOS DE CRECIMIENTO ECONOMICO PARA MEXICO"
CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. / Director General
Carlyle Group The of this article or section may be compromised by "weasel words".
You can help Wikipedia by removing weasel words.
The Carlyle Group is a Washington, D.C.
Senior Economist, Mexico Studies / Economista Senior
Organization for Economic Cooperation and Development Organization for Economic Cooperation and Development (OECD), international organization that came into being in 1961. It superseded the Organization for European Economic Cooperation, which had been founded in 1948 to coordinate the Marshall Plan for European (OECD OECD: see Organization for Economic Cooperation and Development. )/Organizacion para la Cooperacion y Desarrollo Economico (OCDE OCDE Organisation de Coopération et de Développement Économiques
OCDE Organización Para La Cooperación Y El Desarrollo Económico
OCDE Organização para a Cooperação e Desenvolvimento Económico (Portugal) )
David Bloom David Bloom (May 22, 1963 – April 6, 2003) was an NBC journalist (co-anchor of Weekend Today and reporter) until his sudden death in 2003 at the age of 39. Early life
Director of Currency Strategy / Director de Estrategia de Divisas
The HongKong and Shanghai Banking Corporation (HSBC HSBC Hongkong and Shanghai Banking Corporation
HSBC Humane Society of Broward County (Florida)
HSBC Humane Society of Bay County (Bay County, Michigan) )
"RULE OF LAW" / "ESTADO DE DERECHO De`re´cho
n. 1. A straight wind without apparent cyclonic tendency, usually accompanied with rain and often destructive, common in the prairie regions of the United States. "
Lic. Jose Ramon Cosio Diaz
Justice / Ministro
Mexico's Supreme Court / Suprema Corte de Justicia de la Nacion
"POLITICAL REALITIES IN MEXICO: IS COOPERATION POSSIBLE?" / "REALIDADES POLITICAS EN MEXICO: ?ES POSIBLE LA COOPERACION?"
Francisco Barrio Francisco Javier Barrio Terrazas (b. November 25, 1950) is a Mexican politician affiliated to the National Action Party (PAN). He is a former governor of Chihuahua and former secretary in the cabinet of President Vicente Fox. Terrazas*
Coordinator for the National Action Party (PAN) / Coordinador del Partido Accion Nacional (PAN)
Chamber of Deputies / Camara de Diputados
Coordinator for the Institutional Revolutionary Party (PRI PRI: see Institutional Revolutionary party.
(Primary Rate Interface) An ISDN service that provides 23 64 Kbps B (Bearer) channels and one 64 Kbps D (Data) channel (23B+D), which is equivalent to the 24 channels of a T1 line. ) / Coordinador del Partido Revolucionario Institucional (PRI)
Chamber of Deputies / Camara de Diputados
Coordinator for the Party of the Democratic Revolution The Party of the Democratic Revolution (in Spanish: Partido de la Revolución Democrática, PRD) is one of the three main political parties in Mexico. History (PRD PRD
progressive retinal degeneration. ) / Coordinador del Partido de la Revolucion Democratica (PRD)
Chamber of Deputies / Camara de Diputados
Keynote Speaker / Orador de Honor
Ambassador Jeffrey Davidow Jeffrey Davidow (born January 26, 1944) is a career foreign service officer from the U.S. state of Virginia. Davidow has served as a member of the Senior Foreign Service, as well as having been the U.S. Ambassador to Zambia, Venezuela, and Mexico. / Embajador
President / Presidente
Institute of the Americas
AMERICAN CHAMBER/MEXICO has an extensive committee system with close to 1,000 volunteers participating in all three divisions. The committee system has actively worked on adopting unified policy statements to direct the committees' missions in dealing with the Mexican and U.S. governments.
In the future, the Chamber expects all committees will establish policy statements to facilitate continuing and effective interaction inside and outside the Chamber.
This committee supports a consistent farming policy to plan future development.
Problems identified include a lack of transparency, which makes it difficult for producers to accurately price products to cover costs and generate attractive margins.
Bureaucracy, though not insurmountable, obstructs the free flow of goods, generates uncertainty and limits export capacity. Government subsidies exist, but there should be no further market intervention; this should be left to the companies and producers involved.
Competitiveness Working Group
This task force aims to address factors identified by AMCHAM/MEXICO's 2,000 corporate members as decreasing Mexico's global competitiveness and hindering the inflow of greater investment into the country.
As part of this initiative, the Quadripartite QUADRIPARTITE. Having four parts, or divided into four parts; as, this indenture quadripartite made between A B, of the one part, C D, of the second part, E P, of the third part, and G H, of the fourth part. Working Group--comprised of the U.S. business community, the Mexican private sector, and the Mexican and U.S. governments--was formed this year to move the competitiveness agenda forward in a stronger, unified manner.
Fiscal Affairs Committee
This committee is actively engaged in lobbying Mexico's executive and legislative branches to improve the government's tax collection system.
The committee believes it is necessary to expand the tax rolls, reduce the overall tax burden and simplify the complex and time-consuming filing requirements.
Such changes will lead to higher investment flows, greater job creation and more revenues for the government--a win-win situation for all.
Human Capital and Labor Affairs Committee
This committee backs improvements in education, legislation, public safety, rule of law and the enforcement of labor laws to stimulate economic development.
Better education boosts productivity; flexible labor legislation allows movement of human capital and respects workers' rights. The committee encourages greater support for labor law enforcement and a bigger budget to professionalize pro·fes·sion·al·ize
tr.v. pro·fes·sion·al·ized, pro·fes·sion·al·iz·ing, pro·fes·sion·al·iz·es
To make professional.
pro·fes the Conciliation conciliation: see mediation. and Arbitration Boards.
Security and judicial certainty are essential to grow the economy, as are fair and functional laws, impartial courts and efficient public safety organizations.
Given the size and importance of trade flows between the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Mexico, expediting the flow of merchandise across our common border is crucial to efficient business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . The committee works closely with Mexican Customs officials to find ways of reducing costly bottlenecks at key border crossings.
The committee recommends expanding working hours at Mexican Customs facilities, standardizing operating hours on both sides of the border and implementing modernization processes such as risk assessment during Customs inspections.
Partnership for Prosperity (P4P P4P Pay for Performance (Medicare)
P4P Proactive Network Provider Participation for P2P )
Created by Presidents Fox and Bush as a vehicle for stimulating economic growth in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , it has convoked the public and private sector to analyze reasons some areas of Mexico have not fully benefited from Nafta.
P4P has successfully leveraged comparative advantages in both sectors to develop and implement strategies to address these issues. The business community has found P4P to be a unique forum for bringing concerns about trade and investment situations to the attention of the Mexican government.
Although pleased with current initiatives to improve federal and capital law enforcement, the committee is concerned with persistent weaknesses and inefficiencies in the judicial system. These shortcomings A shortcoming is a character flaw.
Shortcomings may also be:
Criminals exploit the lack of cooperation among law enforcement agencies A law enforcement agency (LEA) is a term used to describe any agency which enforces the law. This may be a local or state police, federal agencies such as the Federal Bureau of Investigation (FBI) or the Drug Enforcement Administration (DEA). in different jurisdictions. The committee supports aggressive intelligence gathering and better jurisdictional coordination by law enforcement agencies.
Trade Policy Committee
The committee is developing a position to encourage Mexico to adopt internationally recognized standards to improve the country's competitiveness. Universally adopted standards turn global markets into level playing fields See net neutrality. ; country-specific standards and unreasonable compliance requirements Compliance requirements are a series of directives established by United States Federal government agencies that summarize hundreds of Federal laws and regulations applicable to Federal assistance (also known as Federal aid or Federal funds). are trade barriers. When barriers go up, international competitiveness declines.
This committee is pursuing reforms to expedite importation and exportation customs procedures and make them simpler by reducing red tape. The committee also encourages improved government purchasing processes and procedures for both domestic and foreign suppliers.
AMCHAM in Synthesis
Founded in 1917, the AMERICAN CHAMBER OF COMMERCE OF MEXICO's mission is to promote trade and investment between the U.S. and Mexico. As part of its mandate, AMCHAM is an advocate for creating a better business environment in the 21st century--by keeping corporate issues and concerns in the forefront of public opinion and representing its members' points of view before governmental bodies.
As a member of the U.S. Chamber of Commerce The U.S. Chamber of Commerce is the world's largest not-for-profit federation of businesses, representing more than 3 million businesses and organizations in the United States. As of 2003, the chamber was comprised of 3000 state and local chambers and 830 business associations. and the Association of American Chambers of Commerce in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. (AACCLA AACCLA Association of American Chambers of Commerce in Latin America ), AMCHAM expands its members' sphere of influence in the U.S. and throughout Latin America.
* Independent, non-profit, and non-partisan.
* 2,000 corporate members, who represent 90 percent and approximately US$100 billion of U.S. direct private investment in Mexico.
* Headquartered in Mexico City Mexico City
Spanish Ciudad de México
City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi , with division offices in Guadalajara and Monterrey.
* A network of more than 900 executives serving on 23 issue--and sector-oriented committees.
* A source of reliable, unbiased trade and economic information through its monthly English-language magazine BUSINESS MEXICO, numerous printed and on-line publications, and more than 40 public events each year.
* A forward looking, strategic thinking organization, representing companies which demonstrate the highest industry standards and best practices.
AMCHAM in action
* The definitive voice of U.S. business in Mexico
* A leading advocate for increased trade and investment between the U.S. and Mexico
* A critical point of communication between its members and the U.S. and Mexican governments
* An issue-oriented forum for the serious discussion of trade and investment matters
Mexico: Lucerna 78, Col. Juarez, 06600 Mexico, D.F.
Tel. (55) 5141-3800
Fax (55) 5703-3908
Guadalajara: Av. Moctezuma 442, Col. Jardines del Sol, 45050 Zapopan, Jal.
Tel. (33) 3634-6606 Fax (33) 3634-7374
Monterrey: Rio Manzanares 434 Oriente, Col. DelValle, 66220 Garza Garcia, N.L.
Tel. (81) 8114-2000 Fax (81) 8114-2100
How many Tier 1 suppliers does Nissan have?
How many are Japanese?
How do you define Japanese--in terms of ownership or technology?
Then we have 25 Tier 1 Japanese suppliers in Mexico.
How many are located in Aguascalientes?
How would you compare the efficiency (jobs per hour) of Nissan's Aguascalientes plant with the best in Japan?
Mexico is getting very close, although Japan still invests a lot more in roboties because of the high cost of labor there.
What percentage of your customers purchases their vehicles with credit?
Forty-seven percent pay credit and 53 percent pay cash. By contrast, 60 percent of Ford's customers use credit, while 40 percent pay cash. Mexico is just beginning to emerge from the "Tequila tequila
Distilled liquor, usually clear in colour and unaged, made from the fermented juice of the Mexican agave plant. (See agave family.) It contains 40–50% alcohol. Crisis" so many customers still are wary of borrowing.
How would you evaluate Mexico as an automotive site?
It remains attractive, but it is not as attractive as it used to be. Other emerging market players like China have taken away some of its luster. In addition, there need to be drastic reforms in the tax laws. For example, high taxes on luxury cars like our Q45 make them prohibitively expensive.
COMMITTEE CHAIR TITLE Agribusiness Development Ricardo Celma General Director firstname.lastname@example.org Competitiveness Working Simon Diaz (Co-Chair) President & General Group Director email@example.com Miguel Jauregui Founding Partner (Co-Chair) Education Rogelio M.Villanueva Representative firstname.lastname@example.org Energy Working Group Jaime A.Varela-Walker President email@example.com Fiscal Affairs Rafael Villanueva Tax Strategy Director firstname.lastname@example.org Human Capital and Labor Luis Manuel Guaida Partner Affairs email@example.com Logistics Juan Manuel Carreon General Director firstname.lastname@example.org Mexican Legislation Manuel E. Tron Partner email@example.com Partnership for Prosperity John M. Bruton Senior Managing Working Group Director firstname.lastname@example.org Security Jon M. French Managing Director email@example.com Trade Policy Lucero Garduno Foreign Trade firstname.lastname@example.org Executive COMMITTEE COMPANY Agribusiness Development U.S. Grains Council email@example.com Competitiveness Working Emerson Electric de Mexico Group Jauregui, Navarrete, Nader y Rojas firstname.lastname@example.org Education Mayo Clinic email@example.com Energy Working Group Chevron Texaco de Mexico firstname.lastname@example.org Fiscal Affairs Ford Motor Company email@example.com Human Capital and Labor Guaida y Asociados Affairs firstname.lastname@example.org Logistics Union Pacific de Mexico email@example.com Mexican Legislation Tron y Natera firstname.lastname@example.org Partnership for Prosperity Manatt/Jones Global Strategies Working Group email@example.com Security IPSA International de Mexico firstname.lastname@example.org Trade Policy Gillette de Mexico email@example.com
* Invited, to be confirmed / * Invitado por confirmar
RELATED ARTICLE: The Dynamics of Competition
Mexico's vehicle manufacturers achieve competitive advantage by implementing a combination of two fundamental strategies that focus on balancing product needs between domestic and export markets. The objective of the two strategies is to maximize total revenues and reduce costs.
Most vehicles are built for export to the United States in order to raise volume and average wholesale prices because car and light truck prices in Mexico are generally significantly lower than export models. Domestic volume is too small to achieve globally competitive costs through economies of scale.
In 2003, 73.7 percent of the 1,586,153 vehicles produced in Mexico were exported; nearly half were light trucks. By contrast, 71.4 percent of the 415,950 units manufactured for local consumption were cars, of which 67.3 percent were entry-level subcompacts. GM and DaimlerChrysler (Chrysler division) are the purest practitioners of Strategy I. According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Expansion 500, GM's 2003 Mexican revenues of US$11 billion were tops in the industry. GM also led the industry in total production with a 30.6 percent share (471,619 units). Of these, 83 percent were exported, mostly big, high-priced SUVs.
DaimlerChrysler was Mexico's No. 2 revenue producer in 2003. Its sales of US$8.1 billion accounted for 14.8 percent of Chrysler Division's US$45.2 billion North American North American
named after North America.
North American blastomycosis
see North American blastomycosis.
North American cattle tick
see boophilusannulatus. total. More than 99 percent of its vehicles were produced for export. In 2003, DaimlerChrysler placed second in production (308,738), equivalent to a 20-percent industry share.
Ford placed fifth among Mexico's leading producers in vehicle output and revenues, largely because it is in the process of doubling the capacity of its Hermosillo plant and planning to launch three new, upscale passenger cars in early 2005. In 2003, Ford's total sales amounted to US$3.8 billion, compared to US$5.6 billion in 2000. While 81.3 percent of output was exported, less than 25 percent were light trucks, the segment in which it leads the domestic market.
To compete successfully in Mexico's growing domestic market (977,870 unit sales unit sales
Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. in 2003), vehicle manufacturers must offer attractively priced--i.e. relatively inexpensive--sub-compacts for its largest and fastest-growing market segment. In addition, small and full-size SUVs have to be provided to satisfy Mexico's growing appetite for these flexible types of vehicles.
In 2003, GM led all Mexican light vehicle manufacturers in domestic sales with a 22-percent share and was closely followed by Nissan (21.9 percent), according to AMIA.VW (17.9 percent), Ford (16.4 percent) and DaimlerChrysler (10.2 percent) finished third, fourth and fifth among the industry's five leading manufacturers.
The key to success for GM de Mexico and DaimlerChrysler de Mexico is that both have deftly combined strategies 1 and 2, but GM continually surpasses its German competitor by producing and importing far more subcompacts while simultaneously exporting larger, more expensive trucks.
--Marc. N. Scheinman