CCN MEXICO REPORT

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Issue #
59
 – 
November 2008

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Mexico and China Agree to Resolve Pending Trade Disputes

November 17, 2008

On October 13, 2008 a decree was published in the Official Journal of the Federation (Diario Oficial de la Federación or DOF) containing Mexico’sagreement with the Government of the People’s Republic of China in regard to compensatory duties previously imposed by Mexico on Chinese goods.Based on the published decree, Mexico will be required to implement measures to cancel the reservations contained in Annex 7 of the Accession Protocolof China to the World Trade Organization (WTO). The purpose of this is for Mexico to eliminate antidumping duties on products previously listed inpublications in the DOF originating from China, which means that Mexico will not be able to invoke its reservation of Annex 7 in the future. The decreecontains two Annexes: Annex 1. – Identification of products on which compensatory duties will be eliminated progressively through a transitionalmeans; and Annex 2. – Identification of products on which compensatory duties will be eliminated immediately. While the decree contemplates thepossibility of the progressive elimination established in Annex 1, such decree also states that no compensatory antidumping duties will be able to beimposed on products originating from China starting December 11, 2001. The forgoing results from China’s entry in the WTO and the end of the term ofthe original reservation made by Mexico, which means that Mexico’s market will eventually be totally open to products originating in China.

Mexico’s Congress Approves Energy Reform

November 17, 2008

On October 28, 2008 Mexico’s Chamber of Deputies approved amendments to various Mexican laws collectively referred to as the “Energy Reform”.The Energy Reform presented by President Felipe Calderon’s administration, which has generated much anticipation on the part of Mexicans andforeigners alike, does not rise to the level requiring constitutional amendments or imply a fundamental change of the Mexican Government’s monopolyon petroleum and hydrocarbons. Even if the reform does not open significant new sectors to private investment, it does confirm that private companiesmay provide goods and services required by Petróleos Mexicanos (PEMEX) and other state-owned companies, but the payment for such goods orservices may not be in kind or imply a profit participation in oil production. In general terms, the so-called Energy Reform is limited to granting greaterautonomy to PEMEX’s administration and decision-making processes, making such more closely resemble the decision-making authority enjoyed byprivate companies. In addition, the Energy Reform creates “Citizen Bonds” that allow Mexican companies and citizens to invest in the petroleum sectorvia Mexico’s financial market. This reform seeks, in terms more programmatic than concrete, to increase investment in, and exploration of, renewableenergy sources.

Cancellation of Trademark
November 17, 2008
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Mexico Passes New Energy Efficiency Law
November 17, 2008
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Mexico’s Congress Approves Energy Reform
November 17, 2008
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