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U.S. Department of State
Mexico Country Commercial Guide
Office of the Coordinator for Business Affairs

                            MEXICO COUNTRY COMMERCIAL GUIDE


CHAPTER I ...............................EXECUTIVE SUMMARY
CHAPTER II ..............................ECONOMIC TRENDS AND OUTLOOK
CHAPTER III .............................POLITICAL ENVIRONMENT
CHAPTER IV ..............................MARKETING U.S. PRODUCTS 
                                           AND SERVICES
CHAPTER V ...............................LEADING SECTORS FOR U.S.
                                           EXPORTS AND INVESTMENT
CHAPTER VII .............................INVESTMENT CLIMATE
CHAPTER IX ..............................BUSINESS TRAVEL
CHAPTER X ...............................APPENDICES

                           COUNTRY COMMERCIAL GUIDE

This Country Commercial Guide (CCG) presents a comprehensive look at 
Mexico's commercial environment through economic, political and market 

The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annually at U.S. Embassies 
through the combined efforts of several U.S. government agencies.

U.S. Embassy Mexico
Paseo de la Reforma 305
Col. Cuauhtemoc
06500 Mexico D.F.
Phone (5) 211-0042
Fax (5)511-9980


                                EXECUTIVE SUMMARY

U.S. exports to Mexico have increased dramatically since the late-1980s, 
and in 1994 the U.S. enjoyed a growth rate of more than twenty percent 
in the sale of its products.  A variety of factors including the North 
American Free Trade Agreement (NAFTA) combined to produce a truly 
impressive increase in U.S. trade with Mexico.  At the end of 1994, 
however, the overvalue of the Mexican peso provoked a crisis of 
confidence among investors.  A sharp devaluing of the peso and the 
Mexican Government's aggressive stabilization program set off a serious 
recession.  With significant international support the Zedillo 
Administration is addressing this crisis and it is expected that the 
Mexican economy will present renewed opportunities next year.

As Mexico moved to dismantle its trade barriers, demand for imported 
goods increased dramatically. The country experienced a growing current 
account deficit, covered until 1994 by strong foreign investment 
inflows. The government failed to make some difficult policy choices in 
response to the growing deficit.  Meanwhile, other factors such as 
rising interest rates in other countries and political events which 
raised the perception of risk in Mexico, combined to accelerate the 
flight of capital from Mexican financial markets.  By mid-December 1994 
the Mexican Central Bank was unable to continue its support of the peso 
and the currency was allowed to float.

In early 1995 Mexican financial markets behaved erratically as foreign 
investor confidence waned and the peso depreciated as much as fifty four 
percent. An economic austerity package introduced by the Mexican 
Government comprised of tight credit policies put tremendous pressure on 
Mexican businesses. As expected, inflation will rise in 1995 (projected 
at 42-54 percent annually) and the economy should experience negative 
growth through the end of 1995. However, a financial assistance package 
arranged by the U.S. made available nearly $50 billion and appeared to 
have restored stability to the financial markets as of mid-year.

The peso devaluation transformed Mexico's trade deficit to a surplus 
which immediately reduced pressure on the country's foreign exchange 
reserves.  Additionally, the government planned to further expand its 
trade surplus by increasing tariffs on imports from those countries with 
which Mexico has no standing trade agreement.

In the wake of the devaluation, American exports to Mexico have 
declined.  The impact on each exporter, however, has varied depending on 
the nature of the product.  As one would expect, non-essential products 
such as consumer goods have experienced the greatest decline in 1995.  
Many of these items have simply been under-priced by Mexican substitutes 
in the price-sensitive recessionary market.  Other product sectors, such 
as intermediate goods, have fared much better while experiencing slower, 
yet positive, growth rates.

There are considerable opportunities for U.S. products related to the 
new strength of Mexican exports.  U.S. firms would do well to target 
those Mexican companies which are gearing up to export and which will 
require increasing amounts of capital and intermediate goods.  Some 
government measures to improve the country's infrastructure will also 
provide opportunities for U.S. firms as Mexico continues its plans to 
privatize its airports, railroads, utilities and other state-run 
enterprises.  U.S. companies considering capital investments in Mexico 
might find the cost advantages especially pronounced over the short-

Despite the problems, there are still plenty of opportunities in this 
important market.  Mexico's economic fundamentals are still sound.  
Public finances are in balance.  The private sector, not the government, 
is the driving force in an increasingly deregulated economy.  The NAFTA 
has locked in many of the reforms in progress and there has been no 
turning back from the agreement on the part of the Mexican Government. 
U.S. exporters should keep in mind that over 60 percent of U.S. goods 
now enter Mexico duty free, and that Mexico is our third largest trading 

Mexico is evolving toward a multi-party democracy after 60 years of 
uninterrupted rule by the PRI.  The Zedillo Administration is committed 
to advancing this process through a political reform program.  The 
financial crisis which began shortly after President Zedillo took office 
has complicated the reform process. Nonetheless, the government has made 
good on its commitment by holding free and fair elections in which 
opposition parties have won important vacancies.  The reform process, 
which favors underlying social stability, is expected to continue.


                         ECONOMIC TRENDS AND OUTLOOK 


The year 1994 proved to be the most difficult in recent memory for 
Mexico.  During 1994 the economy was recovering from slow growth in 
1993, but a series of unpredictable political shocks, a massive current 
account imbalance, and international interest rate trends, among other 
factors, caused a drain on Mexico's foreign exchange reserves that 
accelerated late in the year.  This forced the Government to abandon its 
longstanding policy of a predictable foreign exchange rate and in 
December the government let the Mexican peso float.  This devaluation 
presented the newly-inaugurated Zedillo Administration with a severe 
financial crisis.
Mexico's immediate economic outlook is defined by the austere emergency 
economic program that it introduced in early 1995 to manage the effects 
of the devaluation.  Unlike Mexico's economic programs from late 1987 
through 1994, the current strategy does not fall within the framework of 
the Economic Pact (Pacto Economico), an agreement among government, 
labor, business and the rural sector. The nongovernmental sectors did 
not officially endorse the program.    

The year 1995 will be a year of large-scale retrenchment as the 
government implements tight credit and fiscal policies to reduce 
inflation and correct the current account imbalance.  Annual inflation, 
which was brought down to 7.1 percent in 1994 from 159 percent in 1987, 
is expected to fall between 42-54 percent for 1995. Domestic credit 
growth will be curtailed sharply to a rate of 17.5 percent to dampen 
domestic demand. 

In response to the devaluation and the resulting financial crisis, 
Mexico negotiated a package of international support in early 1995 to 
bolster its balance of payments position.  Under this program, the 
International Monetary Fund will provide up to USD 17.8 billion in funds 
to Mexico and the U.S. Government will provide up to USD 20 billion in 
short and medium term funds and guarantees.  

While the emergency economic program focuses on the short term, over the 
medium and long term the Government is continuing a program of 
structural reform and economic modernization.  The National Development 
Plan presented in May 1995 defined a policy direction for the next six 
years.  The objectives of the plan are consistent with economic policy 
of recent years although it 
reflects lessons learned from the financial crisis.  On the economic 
side, the plan stresses the importance of increasing domestic savings to 
reduce Mexico's dependence on foreign investment and to accelerate 
domestic growth to generate jobs.
The NAFTA was implemented in January 1994.  During the first year of the 
NAFTA, U.S.-Mexico trade increased by 23 percent to over USD 100 
billion.  Because the NAFTA locked in trade advantages for U.S. firms, 
U.S. exports to Mexico in the first quarter of 1995 did well in 
comparison to the performance of other countries. The NAFTA is also 
bearing fruit in financial services, although expectations for 1995 are 
modest.  As of June 1995, eight U.S. banks, three insurance companies, 
and one brokerage house had opened Mexican subsidiaries. 

Mexico is continuing with its program of trade and investment 
liberalization.  Trade agreements with Bolivia, Colombia, Costa Rica and 
Venezuela, took effect on January 1, 1995.  Negotiations between the 
NAFTA signatories and Chile began in June 1995 to establish the terms 
for Chile's accession to the agreement.

Mexico has undergone substantial structural changes over the past decade 
and the need for economic adjustment will promote further change.  
Structural reforms - privatization and deregulation - will be 
accelerated in the areas of banking, communications, and transportation.  
The Government expects to raise USD 12-14 billion from privatization by 


From 1992 to 1994 the economic sectors showing the strongest average 
growth were transportation, communications, construction, and 
electricity, followed closely by financial services.  Strong activity in 
these areas reflected the emphasis on infrastructure development.  The 
manufacturing subsectors of basic metals and metal products were strong 
although manufacturing growth overall was below the growth rate in the 
economy.  The agricultural sector proved the weakest growth, reflecting 
problems of low credit availability, foreign competition, and production 

Sectors that performed the best in the first quarter of 1995 that are 
likely to stand out in the recessionary environment are those that are 
important to Mexico's manufactured export industries, such as basic 
metals, chemicals, and electricity.  Other promising areas include 
communications, financial services, and transportation, reflecting 
structural changes in those sectors. 


The role of the public sector in the economy has been declining since 
the 1980's when the Mexican Government began to sell or otherwise 
dispose of some 1,155 state-owned enterprises.  As of the end of 1994, 
only 216 parastatals were in the hands of the government.  Certain 
strategic monopolies such as the oil sector, run by Petroleos de Mexico 
(PEMEX), and the Federal Electricity Commission (CFE), will remain in 
state hands, but the Government is pushing ahead with its privatization 
and concessioning program.  


Mexico began running a deficit on its current account in 1988 and this 
grew to USD 29 billion in 1994, equivalent to eight percent of Gross 
Domestic Product (GDP).  The greatest single factor behind this 
imbalance was the growing trade deficit, primarily with Asia and Europe.  
Imports grew faster than exports due to Mexico's strides in trade 
liberalization, which permitted goods to be imported, and a surplus on 
the capital account that paid for these imports.  The sizeable inflows 
of capital were due to an explosion in portfolio investment in Mexico, 
primarily in short-term government debt.  The flows also reflected, to a 
lesser degree, growing direct investment and the ease with which Mexican 
companies could borrow money internationally at affordable rates.

The heavy current account deficit and the reversal of short-term capital 
flows in 1995 combined to force the December devaluation.  As part of 
its 1995 economic program, the Government is committed to a dramatic 
reduction in the current account deficit, which will be achieved through 
export growth and severe import shrinkage.  During the first quarter of 
1995, Mexico's current account deficit was a negative 1.2 billion, 
compared to a deficit of USD 6.7 
billion for this period in 1994.


The Mexican government has been making a concerted effort to improve the 
country's infrastructure which deteriorated during the several economic 
crises of the 1980's. In 1993 Mexico had nearly 55,300 miles of paved 
road, with an additional 6,000 kilometers of superhighway planned for 
the year 2000.
There are 16,520 miles of government owned railways and Mexico ranks 
ninth in  the number of tons transported per kilometer.

The major domestic privately-owned airlines (notably Aeromexico and 
Mexicana) are the 13th largest in the world in passenger transport.  
Plans are underway to concession various aspects of airport operations 
to the private sector.  U.S. aviation companies are expected to do very 
well in this area in association with Mexican companies.

There are 76 maritime ports in Mexico with 35,000 meters of docking 
facilities.  Since June 1993, private sector involvement has been 
allowed in port operations and development.  

There were 7.6 million telephone lines in service in 1993.  Mexico is in 
the process of fostering competition in telecommunications, and will 
grant concessions to companies who offer competing long-distance and 
local telephone service starting on January 1, 1997.  U.S. companies are 
expected to have strong opportunities in association with Mexican 


                            POLITICAL ENVIRONMENT  


Mexico has enjoyed political stability for most of this century, a 
phenomenon unique in Latin America and largely due to the political 
system set up after Mexico's bloody 1910-1917 revolution.  The anchor of 
the system has been the ruling Institutional Revolutionary Party (PRI), 
which has held power since its founding in 1929.  The PRI successfully 
adapted to changes in Mexican society over the years by alternating 
populist and conservative policies.

The key parties in the opposition lie to either side of the PRI in the 
political spectrum.  The center-right National Action Party (PAN) 
advocates private sector-oriented policies, normalizing Church-state 
relations, more sensitive social policies, and more honesty in 
government.  The PAN has increased its political presence in recent 
years.  As of June 1995, it held four state governorships -- before 
1989, governors were always PRI members -- and it had many more 
officeholders at lower levels of government.  Strong victories in the 
Governor's race, in Jalisco in February 1995, and in Guanajuato in May 
1995, have given the party momentum. The leftist Party of Democratic 
Revolution (PRD) espouses a populist outlook and believes in more 
government intervention in the economy.  PRD's founder -- and former PRI 
member, Cuauhtemoc Cardenas, nearly defeated Salinas in the 
controversial 1988 Presidential race. The party has not duplicated its 
electoral showing in subsequent state, local and federal races.  Mexico 
has other small political parties with limited public appeal that run 
the gamut from Catholic Church-oriented conservatives, to ardent 
ecologists, to unreconstructed socialists.

The Mexican government is modeled closely on the U.S. structure with 
three branches but with a dominant executive.  In the bicameral 
legislature,  the PRI currently holds 95 Senate seats,  while the PAN 
has 25 and the PRD 8.  In the Chamber of Deputies, the PRI has 298 
seats, the PAN 118, the PRD 73 and the Worker's Party (PT) has 10.  
Traditionally a rubber-stamp body, the Congress gradually is becoming 
more outspoken as the number of opposition representatives increases.  
The Mexican judiciary has suffered from a poor career system and 
corruption, although  the Congress has recently approved major judicial 
reforms that include the creation of a merit-based Judicial career. 

Although the PRI has been the dominant force in Mexican politics 
throughout this century, successive political reforms have opened more 
space for opposition parties.  The PRI's traditional advantages have 
included its vast nationwide organization and access to government 
resources, which in turn have prompted complaints of unfairness and 
fraud in elections.  As pressure for reform increased, the government 
has responded gradually.   For example, in the late 1970s, opponents had 
more opportunities to compete in federal elections with a specific 
number of seats set aside for them in the lower houses.  In 1989-1990, 
the Congress passed reform legislation that revamped the entire federal 
electoral system, creating a semi-autonomous Federal Electoral Institute 
and a separate Federal Electoral Tribunal to adjudicate election 
disputes.  The government has issued voter credentials with photographs 
to combat fraudulent voting practices.  

Nonpartisan counselors dominate the decision making bodies of the 
Federal Electoral Institute.  Violation of the ballot's secrecy, 
coercion  on voting day, manipulation of the results, and use of 
government resources for electoral purposes are now among those 
practices explicitly prohibited by law and sanctioned by criminal 
penalties.  The recent reforms also have enshrined in law the right of 
Mexicans to observe the electoral process from start to finish and in an 
unprecedented concession, and permit foreign "visitors" to witness 
Mexican elections.

Mexico held elections on August 21, 1994 to choose a new president and 
congress.  In an unprecedented atmosphere of competition and openness, 
the PRI's Ernesto Zedillo won.  Zedillo is a former cabinet secretary in 
the Salinas administration.  Other candidates were the PAN's Diego 
Fernandez, a lawyer and legislator, and the PRD's Cuauhtemoc Cardenas, 
son of one of Mexico's most revered presidents.


The relationship of the United States with Mexico is important and 
complex.  It is shaped by a mixture of mutual interests, shared 
problems, growing interdependence, and differing national perceptions.  
Historical factors, cultural differences, and economic disparities add 
further intricacy to the relationship.

The scope of U.S.-Mexican relations goes far beyond diplomatic and 
official contacts, entailing extensive commercial, cultural, and 
educational ties.  Along our 2,000-mile border, state and local 
governments interact closely.  The two countries cooperate to resolve 
many issues, including trade, finance, narcotics, immigration, 
environment, science and technology, and cultural relations.

An independent, strong, and economically healthy Mexico is a fundamental 
U.S. interest.  Both governments actively discuss ways to improve 
cooperation on an array of bilateral issues.  Since 1981, this process 
has been formalized in the U.S.-Mexico Binational Commission, composed 
of U.S. cabinet members and their Mexican counterparts.  The Commission 
holds annual plenary meetings, and many subgroups meet during the course 
of the year to discuss a range of 

topics, including trade negotiations, investment opportunities, 
financial cooperation, narcotics, migration, law enforcement, cultural 
relations, education, border cooperation, environment, labor, 
agriculture, housing and urban development, fisheries, and tourism.

The most outstanding feature of our bilateral relationship in recent 
years, however, has been the achievement of a the NAFTA between Mexico, 
the United States, and Canada.  Greater interaction between our nations 
on the trade front will foster more understanding of each other's 
political systems, greater appreciation for cultural differences, and a 
more open atmosphere for conducting our full range of relations.


In his first year in office, President Zedillo has faced a number of 
challenges, ranging from the recession to the continuing conflict in 
Chiapas.  There has not been fighting in Chiapas since the first few 
days of 1994, and the Government and the insurgent leaders (the 
Zapatistas or EZLN) are engaged in negotiations.  To date, the Chiapas 
uprising has not been repeated elsewhere in Mexico, and the government 
seems to have the situation well under control.

While the recession and the events in Chiapas have underscored for the 
Clinton Administration -- and for the Mexican Government -- the depth of 
socio-economic and political problems still present in Mexico, they have 
not changed our overall perception of Mexico's dramatic economic changes 
over the last decade, its current status as a developing industrial 
nation, or its potential for the future.  The Zedillo administration is 
focusing additional efforts on antipoverty programs to ameliorate the 
effects of wide disparities in income distribution, while a more open 
political system allows the people to vent their frustration at the 
ballot box in local elections.

U.S. support for full implementation of the NAFTA has not been affected 
by the recession, Chiapas or other recent events in Mexico.  The 
U.S.Government is confident that the NAFTA will improve economic 
prosperity for all three of the agreement's trading partners.  Indeed, 
the economic growth that the NAFTA will bring to Mexico may help 
alleviate some socioeconomic conditions that contributed to the turmoil. 
The election results, a virtual NAFTA referendum, showed that the 
electorate is firmly behind the agreement.

Other events that rocked the Mexican political scene were the 
assassinations of PRI presidential candidate Luis Donaldo Colosio on 
March 23, 1994 and of PRI Secretary General Jose Francisco Ruiz Massieu 
on September 28, 1994.   Despite the shock and horror of these events, 
the Mexican system held together well, and the opposition parties put 
partisan politics aside to show solidarity with the nation as a whole.  
In an unprecedented move, President Zedillo named PAN party member 
Antonio Lozano as Attorney General.  His office has announced 
significant advances in the investigations of these assassinations.

The recession, the uprising in Chiapas, and the assassinations have 
augmented uncertainty in Mexico, but the U.S.Government is confident 
that Mexico's political institutions will weather the crisis.  While 
these events were indeed a shock to the Mexican system, which has 
enjoyed over a half century of stability, the resiliency and flexibility 
of the  various institutions -- both political and governmental -- to 
respond to the events and move forward were heartening.  Admittedly, 
Mexico is in a period of change and it is inevitable that it will 
experience some bumps along the road as it makes the transition from a 
closed economy to an open market and from one-party dominance to a 

multiparty system.  A key factor in Mexico's continued stability is the 
willingness of the political actors to maintain a dialogue about the 
future of the country and to work together to bring about change in an 
orderly and peaceful fashion.  Mexico took this approach not only in the 
presidential election but in the local elections held in 1995.  These 
are manifestations of a maturing political system and the culmination of 
many years of struggle by the opposition to have greater access to 



Mexico's population is approximately 90 million with 80 percent under 
the age of 40 years, and 50 percent under the age of 25.  The birth rate 
has fallen from 3.3 percent to 2.0 percent since 1980. Nearly 70 percent 
of the population lives in urban areas specifically Mexico City (15 
million), Guadalajara (3.2 million), Monterrey (2.9 million), Puebla 
(1.5 million), Leon (1.2 million), and in some 70 other cities with 
populations ranging between 100 to 900 thousand.

One third of the population (30 million) work in some 1.3 million 
establishments mainly (97 percent) in micro, small and medium size 
firms.  A large firm employs 500 or more workers.

The Mexican consumers are: a) the upper class (2 percent of the 
population) characterized by a high level of education, luxury housing, 
multiple vehicles, and international travel; b) upper middle class 
(about 20 percent of the population), university educated, who serve as 
professionals or company managers, who own homes,  autos, buy a wide 
range of household appliances and travel internationally occasionally; 
c) lower middle class (about 49 percent of the population), live in 
smaller homes, and spend a greater percentage of their income on basic 
necessities; and d) the rural, the underemployed, or the unemployed.    


The major marketing areas are:

-The central area around Mexico City (population of 18.2 million) that  
includes the cities of Puebla, Toluca, Cuernavaca, and Pachuca.  This is 
the political, commercial, financial, and cultural center of the 

-The Bajio area around the City of Guadalajara (population of 6 million) 
that includes the cities of Leon, Aguascalientes, Celaya and Irapuato).  
This is  an important commercial, industrial and agricultural area with 
Guadalajara as the financial hub for thearea.

-The northern area around the City of Monterrey (population of 4.7 
million) that includes the cities of Torreon, Saltillo, and Monclovia).  
This is an important industrial area producing a variety of products 
including steel, glass, textiles, beverages, paper and chemicals.
-The 2,000 mile U.S.-Mexico Border (population of over 3 million) that 
includes the cities of Juarez, Tijuana, Mexicali, Matamoros, Reynosa and 
Nuevo Laredo. This is an active industrial, agricultural and tourist 
Mexican firms produce a wide variety of products that offer excellent 
opportunities for export sales of machinery, equipment, industrial raw 
materials, replacement parts, accessories, service, know-how, and direct 
sales to major OEM'S such as the automotive assembly industry.  With the 
current Government's push to increase exports, the quality of products 
will improve to meet international standards. These population centers 
will also continue to offer a large market for U.S. Consumer goods.


The market employs many of the same sales, distribution and marketing 
techniques used in the United States. When approaching the market to 
develop a market entry strategy, American exporters should consider many 
points such as: small retailers and family owned businesses dominate the 
market; mass merchandising is popular especially for consumer goods; 
and, there is a need for performing original market research, since 
there is a limited  amount of available information, and statistics can 
be scarce. The U.S. exporter also needs to be aware of and respect local 
customs: use breakfast and lunch meetings as an important vehicle to 
conduct business in a social setting; try not to use dinner for 
conducting serious business and business.

The infrastructure is not fully developed and major distribution and 
marketing centers are not connected by "freeways."  Direct marketing and 
telemarketing is still evolving as a marketing strategy. If the product 
is new to the market, or if the market is extremely competitive, 
advertising and other promotional support should be negotiated in detail 
with your agent/distributor. You should take care when selecting a 
Mexican associate to develop the market, English language capability 
should not be exaggerated as a decision factor. Other criteria, such as 
product and industry knowledge, track record, enthusiasm and commitment 
should be weighted heavily. Service and price are extremely important to 
Mexican buyers. The U.S. exporter should also schedule an annual visits 
of Mexican personnel to the U.S. plant for training. Other factors to 
consider include financing to the consumer, as the commercial and 
industrial sectors are limited.  Joint venture arrangements should also 
be investigated to strengthen market penetration.  U.S. maquiladoras 
represent another market opportunity as  the majority of inputs are 
directly from the United States.
Franchises in Mexico have been growing rapidly since 1991 but this 
growth came to a crashing halt during the first quarter of 1995.  Retail 
Sales for the period of January-April 1995 fell by some 28 percent. 
There are now 18,724 outlets employing some 133,230 workers representing 
375 parent companies.    Of the 375 parent companies offering 
franchises, 111 are from the restaurant industry followed by the 
automotive service sector with a distant second place at 36.  There are 
no barriers to franchisors of any products or services.


Most foreign firms sell into the Mexican market by appointing a Mexican 
agent and/or distributor.  Many firms open direct sales offices and 
subsidiaries.  With few exceptions, direct sales into Mexico by U.S. 
based manufacturers and distributors can be difficult to close. The 
current difficult economic situation has caused many distributors to 
conserve scarce financial resources by not stocking imported products.

Selection of the appropriate agent or distributor requires time and 
effort.  Though there may be numerous qualified candidates, use high 
standards in selecting the agent/distributor.  If the selected Mexican 
firm is selling into a limited area, appoint others located in other 
cities to broaden distribution.  It is important to develop a close 
working relationship with the appointed agent/distributor. Providing 
appropriate training, product support, including supplying spare parts 
on a timely basis, is a must.  There are no indemnity laws to prevent a 
company from terminating an agent or distributor agreement.   

Exclusivity will be requested by most candidates.  Review the request 
carefully.  Sales performance clauses in agent/distributor agreements 
are permitted and failure to meet established standards can be cause for 
contract termination. As in the U.S., few distributors service the 
entire market. 

Prior to signing the agent/distributor agreement, make certain that the 
person understands the terms and conditions and the relationship to be 
developed.  Many relationships are strained when they are not fully 
developed or understood, especially when delays are encountered in a 
stagnant economy.      


Personal presentations/visits to potential Mexican counterparts are 
suggested. The Commercial Service of the U.S. Department of Commerce 
offers many programs and services to assist in locating 
agent/distributor candidates including the Agent Distributor Service 
(ADS).  This service is available for Mexico City, Monterrey and 
Guadalajara.  This ADS program is designed to identify up to six local 
firms that have expressed interest in being appointed an 
agent/distributor.   After the names are submitted to the American firm, 
a visit to the candidates should be implemented.  Assistance in 
identifying candidates and scheduling appointments can also be provided 
through the Commercial Service Gold Key program.  The Commercial 
Service, as well as other organizations, such as U.S. State Government 
Offices, maintain lists of Mexican agents/distributor, manufacturers, 
Mexican Government and private sector trade organizations.  This support 
can assist firms in locating a wide range of information, including 
product standards.  As all business entities must be members of an 
appropriate chamber of commerce or industry association in Mexico, these 
organizations offer membership lists.    

Companies may also wish to participate in one of the hundreds of 
exhibitions held each year.  There are several facilities in Mexico City 
for such shows including the Commercial Service's U.S. Trade Center.  
The Commercial Service has offices located in the Cities of Monterrey 
and Guadalajara that offer the full range of U.S. Department of Commerce 
programs and services including organizing and holding exhibitions in 
large, modern exhibition centers.  

Market research reports are prepared by the Commercial Service of the 
U.S. Department of Commerce in Mexico.  These reports are entitled 
Industry Sector Analysis reports and are available through the Commerce 
Service's District Offices in the U.S.   

Profit margins on goods sold in Mexico appear to be high, but economic 
considerations and increased market competition have begun to exert an 
influence.  Exporters should look carefully at import duties, (taking 
into account the NAFTA tariff reductions) broker's fees, transportation 
costs, and taxes before establishing local prices.  Sales for inventory 
reduction are less common than in the U.S., as are factory stores 
rebating seconds or overstocks.  Both consumer and industrial markets 
have shown increased price sensitivity during an economic recession.


Government of Mexico bidding opportunities appear in the Official 
Gazette, in major newspapers, and a weekly private publication entitled, 
"Resumen de Convocatorias"  (Editorial Grupo Miranova, Moras 736-B, 
Colonia del Valle, 03100 Mexico D.F.  Telephone (52-5) 524-7154 or 524-
7254.  Fax (52-5) 524-7094.  Mexican law and the NAFTA have mandated 
specific lead times for bids of a certain estimated value.  

Each parastatal or government agency may request registration by 
suppliers, even though this procedure is no longer mandated by law.  
Registration can usually take place at the time of bidding.  Documents 
required for registration may include legal or incorporation papers, the 
business license, proof of membership in the appropriate business 
chamber, proof of property tax payment, audited financial statements, 
and/or a power of attorney statement naming the legal representative in 
Mexico.  Documents usually must be in Spanish.

While maintaining a representative or office in Mexico is not a 
prerequisite to obtaining contracts, it can facilitate obtaining the 
information needed to prepare bid documents and support after-sales 
service and parts supply.  


American firms can do business from the U.S. without establishing income 
tax and other obligations with the Mexican Government. In appointing an 
intermediary and or an agent/distributor, they should be limited to 
performing market research promotion, solicitation and negotiation of 
the sale of  products and services. U.S. firms should not grant 
permission to  the local company to execute contracts. The Mexican firm 
should only provide clients with information, pricing, payment terms, 
ordering services, and can receive payment for the American firm. There 
is a need to use a Mexican lawyer, though they are usually expensive.

Mexico has signed the U.N. Convention on International Sales of Goods. 
American firms are encouraged to become familiar with this treaty as 
they can request the Mexican importer to waive the provisions of this 
convention, if appropriate. Mexico has not enacted a Dealers Act and 
sales can be made in      English. 

There is a wide range of broadcast and print media available.  Many are 
industry specific.  Many specialized business magazines are published in 
Mexico.  Mexico City has over 15 newspapers.  Advertising in Mexican 
print media is usually more expensive than in the U.S.  Advertising 
rates generally approximate those of large international cities.  

Successful ad campaigns are generally described as having a local touch, 
which may include both linguistic and cultural considerations.  
Exporters may wish to seek assistance from one of the many full service 
advertising agencies in Mexico City, many of which are branches of U.S. 
and other firms.

Mexico City has 25 FM and 35 AM Spanish-language radio stations.  Radio 
VIP (FM 88.1) broadcasts in English.  A magazine published by Medios 
Publicitarios Mexicanos, S.A. de C. V. specializes in radio and 
television stations.  It includes all the radio stations in Mexico with 
their addresses and telephone numbers.

Mexico City has two television networks with a total of seven channels, 
all in Spanish.  Over 500,000 families, hotels, etc. subscribe to 
Cablevision in Mexico City.  Another 200,000 subscribe to a second cable 
service, Multivision.  Both contain a considerable number of U.S. - 
origin channels, some with advertising in Spanish.

Some Important Business Publications In Mexico:

Expansion (Twice monthly)
Jose Antonio de Colsa
Production and Distribution Manager
Sinaloa No. 149, 9th. Floor
Col. Roma Sur
06700 Mexico, D.F.
Tel: (525) 207-2176
Fax: (525) 511-6351

Mexico's international business magazine.  In-depth news and analysis on 
Mexico business, finance, trade and politics.

El Financiero Weekly International Edition
2300 S. Broadway
Los Angeles, CA  90007
Tel: (213) 747-7547,  (800)  433-4872
Fax: (213) 747-2489
Affiliated with Mexico's newspaper El Financiero.  The international 
edition has a circulation of 64,000.

Business Mexico (Monthly)
Carlos Pozos, Advertising
The American Chamber of Commerce in Mexico
Lucerna 78, Col. Juarez
06600 Mexico, D.F.
Tel: (525) 724-3800
Fax: (525) 703-2911 or 703-3908
Circulation 10,000
Contact: Ms. Diane Hemelberg de Hernandez, Editor

Published by the American Chamber of Commerce of Mexico.  Readers are 
senior Mexican and American executives in Mexico.  Many Mexican 
companies that do business with U.S. companies are subscribers.

The following are industrial product and equipment publications: 

Medios Publicitarios Mexicanos, S.A. de C. V.
Radio and T.V.
Av. Mexico 99-303
Col. Hipodromo Condesa
06170 Mexico, D. F.
Tel: (525) 574-2604 or 574-2668
Fax: (525) 574-2668
Contact: Jose A. Villamil Duarte, Director

This company publishes a directory of advertising media in Mexico which 
includes almost all magazines, newspapers, and radio and TV chains.  The 
directory is published quarterly and yearly subscriptions are available.

Transformacion - monthly
Published by CANACINTRA (National Chamber of the Manufacturing Industry)
San Antonio 256
Col. Ampliacion Napoles
03849 Mexico, D.F.
Tel: (525) 611-3227
Fax: (525) 598-5888
Contact: Lic. Lucía Covarrubias, Communications Manager
Official magazine of CANACINTRA.  Circulates among business and industry 
people of all specialties.

Industria - monthly
Published by: Confederacion de Camaras Industriales
Manuel María Contreras 133-1
Col. Cuauhtemoc
06597 Mexico, D.F.
Tel: (525) 592-0529
Fax: (525) 535-6871
Contact: Lic. Perla Gutierrez Zamora, Editor

This is the business magazine of the confederation of Industrial 
Chambers in Mexico, which circulates among industrial sectors.


Mexico is a member of most international organizations regulating the 
protection of intellectual property rights (IPR).

The Mexican government strengthened its domestic legal framework for 
protecting intellectual property in 1991 with the promulgation of a new 
industrial property law (patents and trademarks), and an extensive 
revision of its copyright law.   Product patent protection was extended 
to virtually all processes and products, including chemicals, alloys, 
pharmaceutical, biotechnology and plant varieties.  The term of patent 
protection was extended from 14 to 20 years from the date of filing.  
Trademarks are now granted for 10 year renewable periods.  The enhanced 
copyright law provides protection for computer programs against 
unauthorized reproduction for a period of 50 years.  Sanctions and 
penalties against infringements were increased and damages now can be 
claimed regardless of the application of sanctions.

The Mexican Institute for Industrial Property was created in November 
1994 to professionalize and improve patent and trademark enforcement.  
Amendments to the copyright law are expected to be presented to the 
Mexican Congress in December 1995. Implementation of the NAFTA 
provisions will further strengthen IPR protection by providing for 
nondiscriminatory national treatment of IPR matters, recordings, 
computer programs and proprietary data, and by providing express 
protection for trade secrets and proprietary information.

Mexico actively enforces its intellectual property laws and has seized 
and destroyed millions of dollars worth of pirated merchandise.  This 
enforcement has affected street vendors, but they have not produced 
indictments or prosecutions of large-scale pirates.  In an effort to 
improve enforcement and put teeth into its IPR laws, the Mexican 
government formed an inter-secretarial commission in October 1993 to cut 
through the bureaucratic obstacles hindering effective action.





Rank of Sector     Name of Sector

    1              Automotive Parts and Service 
    2              Franchising
    3              Pollution Control Equipment
    4              Chemical production Machinery
    5              Telecommunications Equipment
    6              Building Products
    7              Management Consulting Services
    8              Apparel
    9              Aircraft and Parts
   10              Electronic Components
   11              Water Resources Equipment/Services
   12              Construction Equipment
   13              Architecture/Construction/Engineering
   14              Air Conditioning and Refrigeration Equipment
   15              Medical Equipment, Instruments and Disposables
   16              Oil/Gas Field Machinery
   17              Port and Shipbuilding Equipment
   18              Cosmetics and Toiletries
   19              Machine Tools and Metalworking Equipment
   20              Laboratory and Scientific Instruments
   21              Food Processing and Packaging Equipment
   22              Hotel and Restaurant Equipment
   23              Mining Industry Equipment
   24              Railroad Equipment and Parts
   25              Oil, Gas, Mineral Production/Exploration Services
   26              Insurance Services

Agricultural Products:

                   Feed Grains (corn)
                   Fresh Deciduous Fruit (Apples and Pears)
                   Meat, Beef and Veal
                   Pet Food
                   Poultry Meat (Chicken and Turkey)



Rank of Sector:        1
ITA Industry Code:     APS

The Mexican automotive industry is going through a severe crisis and 
does not expect to begin to recuperate until 1996.  Sales of new 
vehicles in Mexico have dropped 60% this year.  The autoparts industry 
is focusing mainly on export sales, which have been growing.  The 
promising area in the near future is sales to the Mexican replacement 
market.  With around 13 million vehicles circulating in the country, 
auto replacement parts, maintenance, and service equipment will be in 
demand.  Even with the difficult situation that the Mexican autoparts 
market is undergoing at this moment, especially in the OEM sector, this 
market will remain a good opportunity for U.S. goods.  At least 60% of 
the parts sold in Mexico are imported.  There are good opportunities 
particularly for connecting rods, fuel injection tracks, valves, 
automatic transmissions, turbochargers, electronic engine management 
systems, power steering, anti-lock braking systems, suspension parts, 
emission equipment, catalytic converters, steering wheels, plastic 
molded products such as bumpers, panels and gas tanks, auto alarms, auto 
stereos, luggage racks, headlights, sunroofs, rims, rear-view mirrors, 
moldings, and hubcaps.  The auto industry is expected to begin recovery 
by the end of 1995 and through 1996.  The figures noted below do not 
reflect maquiladora operations (re-exports) nor imports of CKD 
(complementary assembling equipment).

DATA TABLE  (US$ millions)

                               1994     1995     1996

A. Total Market Size           9733     8062     8608
B. Total Local Production      7183     6840     7045
C. Total Exports               4166     4374     4592
D. Total Imports               6716     5596     6155
E. Total Imports from the U.S. 4011     3399     3806

   Exchange rate:              3.33      N/A      N/A

The above statistics are unofficial estimates.


Rank of Sector:          2
Name of Sector:          FRANCHISING
ITA Industry Code:       FRA

Despite Mexico's economic situation, the franchising market is expected 
to continue its growth, but at a very slow rate.  A survey conducted by 
the Mexican Franchise Association showed that about one-third of 
franchises have been negatively affected by the devaluation.  Their 
inputs keep rising requiring price increases which will reduce sales and 
profits.   In 1994 total sales of franchises represented one percent of 
the GDP.  The franchising sector is composed of approximately 375 master 
franchises representing 18,724 selling points employing 133,235 people.   
In the first quarter of 1995, sales by franchising outlets declined 
approximately 28%.  

American franchises continue to be the leading imported franchise since 
Mexicans are familiar with the quality standards offered by the American 
franchises.  The sector is experiencing a consolidation and expansion 
stage.  Of the total franchises operating in Mexico, 52.7% are national 
and 47.3% are foreign franchises.   There are 69 different types of 
franchises of which fast-food accounts for 17% of the market, apparel 
and footwear 14% and other restaurants in general 11%.  Franchises that 
continue to grow are in the following sectors: automotive, cleaning 
services, convenience stores, electronic components, gas stations and 

DATA TABLE  (US$ millions)

                                   1994     1995      1996

A. Total Sales                   5083.2   5490.0     6423.1
B. Sales by Local Firms          3041.4   3327.2     4044.4
C. Foreign Sales by Local Firms   341.8    433.9      622.3
D. Sales by Foreign-owned Firms  2533.6   2596.7     3001.0
E. Sales by U.S. owned Firms     2054.7   2077.3     2433.0

   Exchange rate:                  3.33    N/A         N/A

The above statistics are unofficial estimates.


Rank of Sector:          3
ITA Industry Code:       POL

Mexico's environmental policy and programs have presented opportunities 
for this industry during the last five years.  Mexico has followed the 
developed countries environmental policies and will keep enforcing its 
regulations in all of the regions of the country.  Major opportunities 
for the next five years are in the municipal and industrial waste water 
area and the solid and hazardous waste equipment and services sector.  
The government has indicated that it will keep enforcing the regulations 
regardless of the present economic conditions.   Therefore, private and 
public companies will continue to find ways to install pollution control 
equipment and use environmental consulting services.  In addition, 
states and municipalities are continuing their attempts to encourage new 
private investment to comply with the existing regulations and 
multilateral development banks have indicated that they will keep 
helping Mexico with more lines of credit to develop the environmental 

DATA TABLE  (US$ millions)

                                 1994      1995       1996

A. Total Market Size           2,254.0    2,117.4  2,290.1
B. Total Local Production        286.0       90.0    159.0
C. Total Exports                  27.0       27.5     28.6
D. Total Imports               1,995.0    2,054.9  2,157.7
E. Imports from the U.S.       1,150.0    1,196.0  1,402.5

   Exchange rate:          3.33     N/A      N/A

The above statistics are unofficial estimates.


Rank of Sector:          4
ITA Industry Code:       CHM

Investment in chemical production machinery is expected to increase 
within the next ten years to make this sector more competitive to meet 
the demands of the domestic market.  Mexico's chemical sector includes 
400 small, mid-size and big companies with many installations that have 
technology that is over 30 years old.  The big companies (two percent) 
must keep up with modern production machinery and the rest will need to 
invest in new production machinery once the economy begins to 
recuperate.  Major investments in machinery will also be needed to build 
new chemical installations in the country.  It is expected that this 
sector will become more integrated and competitive internationally as it 
increases its exports.  

DATA TABLE  (US$ millions)          

                                 1994          1995          1996

A. Total Market Size          1,518.0       1,056.7       1,146.0
B. Total Local Production       192.0         100.0         107.0
C. Total Exports                 40.5          44.0          56.0
D. Total Imports              1,366.5       1,000.0       1,100.0
E. Imports from the U.S.        957.0         700.0         836.0

   Exchange rate:                3.33          N/A           N/A

The above statistics are unofficial estimates.


Rank of Sector:         5
ITA Industry Code:      TEL

Even though the Mexican peso was devaluated in December, 1994, the 
telecommunications sector is expected to grow 11% percent due to the 
recently enacted Mexican telecommunications law.  The law opens 
telecommunications to all qualified companies and allows foreign 
competition into the market.  This opportunity can be translated into 
purchases of foreign equipment, local  production of equipment, and 
improvement of telecommunications services

DATA TABLE  (US$ millions)          

                                 1994          1995          1996

A. Total Market Size          3,846.00        4,231.0       4,696.4
B. Total Local Production     1,867.9         2,055.1       1,297.3
C. Total Exports                766.9           843.6         928.0
D. Total Imports              2,745.0         3,019.5       3,327.1
E. Imports from the U.S.        710.1           766.9         828.3

   Exchange rate:                 3.33          N/A            N/A

The above statistics are unofficial estimates.

This estimated statistical data was provided by the National Chamber for 
the Electronics Industry and Electric Communications (CANIECE) and the 
Mexican Association for Telematics (AMEXTEL).


Rank of Sector:        6
Name of Sector:        BUILDING PRODUCTS
ITA Industry Code:     BLD

Domestic producers supply about 88 percent of building products consumed 
in Mexico.  The devaluation of the currency in December 1994 forced 
these producers to raise prices by 30 percent to cover the high domestic 
interest rates and increase of their debt service to loans contracted in 
dollars.  Imports will thus be more competitive in the Mexican market .  
The best prospects include the following items which are not generally 
produced in Mexico: prefabricated parts for buildings, deluxe finishing 
products, treated wood, environmentally-friendly drainpipes, plumbing 
materials, and paint.  Mexico does not have extensive forestry resources 
and little hardwood is produced here, so there is no domestic substitute 
for many wood products.

DATA TABLE  (US$ millions)          

                                1994          1995          1996

A. Total Market Size          1,382.0      1,451.0        1,535.6
B. Total Local Production       576.1        621.0          664.1
C. Total Exports                120.3        123.9          130.1
D. Total Imports                926.2        953.9        1,001.6
E. Imports from the U.S.        579.6        596.9          626.7

   Exchange rate:                 3.33         N/A           N/A 

The above statistics are unofficial estimates.


Rank of Sector:         7
Name of Sector:                    MANAGEMENT CONSULTING SERVICES
ITA Industry Code:          MCS

This sector showed a growth rate of 30 percent during the last 3 years.  
It is now projected to decline an average of 4 percent in 1995 and will 
recover by 2 percent in 1996.  It is expected that the sector will not 
recover to its 1994 level until 1998.  The small and mid-size firms once 
expected to constitute an important growth segment are reducing 
personnel and expenses.  The market will be sustained by the traditional 
large company segment.  Opportunities for U.S. firms working 
independently are limited.  The best strategy is to work with a Mexican 
partner.  The consulting services with best opportunities are those 
related to Mexican exports.

DATA TABLE  (US$ millions)          

                                   1994          1995          1996

A. Total Sales                    1423.0        1366.0       1393.3
B. Sales by Local Firms            862.8         827.9        845.2
C. Foreign Sales by Local Firms     45.3          43.0         44.7
D. Sales by Foreign-owned Firms    605.4         581.1        592.8
E. Sales by U.S. owned Firms       544.8         523.0        533.4

   Exchange rate:                    3.33          N/A          N/A

The above statistics are unofficial estimates.


Rank of Sector:        8
Name of Sector:        APPAREL
ITA Industry Code:     APP

American women and girls clothing are considered of good quality, design 
and price. US exporters can offer four seasonal lines in the Mexican 
market.  European manufacturers generally produce only two seasonal 
product lines, limiting the variety.

Imports of men's apparel have increased significantly since the opening 
of the Mexican market in 1986. Imports are mainly fine designer 
garments, casual wear, as well as lower priced garments supplied by 
Asian countries.  US apparel imports should increase when a 35 percent 
import tax for non-NAFTA countries is applied in August 1995.

Imports from the U.S. have increased  91% from USD 193.8 million in 1992 
to USD 370.4 million in 1994.  With the economic slow down, the U.S. 
market share was reduced by 14.7% because the Mexican consumer increased 
their purchase of lower priced Asian apparel. The U.S. is strong in 
supplying quality and design casual and sport slacks, jackets, shirts 
and suits. The main competitors are Italy, Germany and Spain, which 
supply quality and fashion design garments, and Hong Kong and Taiwan, 
which supply low end garments.

Import Market Share (percent for U.S. and Major Competitors):
United States 30.0; Hong Kong 16.7; Italy 13.5; Taiwan 4.6; Germany 3.1; 
Spain 2.8; and France 1.2.

DATA TABLE  (US$ millions)          
                                   1994      1995       1996
A. Total Market Size              5,757.2   5,572.0   5,670.0
B. Total Local Production         5,076.5   4,913.0   5,010.0
C. Total Exports                     84.8      95.0     110.0
D. Total Imports                    765.5     754.0     770.0
E. Imports from the United States   370.4     399.0     446.0

Exchange rate:                        3.30     N/A       N/A

The above statistics are unofficial estimates. Source of Information: 
National Chamber of The Garment Industry (Camara del Vestido), and 
Commercial Service market research.


Rank of Sector:         9
Name of Sector:         AIRCRAFT AND PARTS
ITA Industry Code:      AIR

Mexico is highly dependent on imported aircraft and parts.  There are 
approximately 102 commercial, cargo and private airlines operating in 
Mexico.  Around 35 of them are international lines; 6 are national lines 
with Mexicana, Aeromexico and Taesa being the largest ones; 13 regional 
lines; and 48 private lines, including FBOs, charter flight companies, 
aero taxis, etc.  The aviation industry must maintain its fleet in good 
operating conditions.  The economic situation in Mexico and the 
devaluation of the peso makes major purchases of new aircraft difficult; 
major purchases of aircraft are not expected in the near future.  The 
Mexican aviation industry is moving towards modernization.  The recovery 
of the air transport industry in Mexico will be slow due to the present 
economic situation.  However, the market for airplane parts remains 
steady with the private and regional lines being the most promising 
areas.  Enforcement of the just issued Civil Air Transport Law is 

DATA TABLE  (US$ millions)          

                                1994          1995          1996

A. Total Market Size           643.3          495.7          544.7
B. Total Local Production      182.7          128.8          142.4
C. Total Exports               121.3          117.3          129.7
D. Total Imports               581.9          484.2          532.0
E. Imports from the U.S.       352.2          291.0          320.1

   Exchange rate:               3.33          N/A          N/A

The above statistics are unofficial estimates.


Rank of Sector:         10
Name of Sector:         ELECTRONIC COMPONENTS
ITA Industry Code:      ELC

The December 1994 devaluation of the Mexican peso resulted in a 
recession that will reduce the 1995 growth of electronic components to 
near zero.  Many observers believe that the economy will start to 
recover late 1995-early 1996. This situation will certainly reduce 
imports by making them more expensive but will increase the 
competitiveness of locally produced electronic components. Market growth 
may be lower than indicated below. 

Mexican manufacturers of electronic components have changed their 
product lines  (eliminating some and adding others to adjust to the 
changed market), reduced staff, and closed some facilities. 
Manufacturers are focusing on reducing costs. Adjustments in other 
industrial sectors will affect this industry.

DATA TABLE  (US$ millions)          

                               1994          1995          1996

A. Total Market Size           553.7          581.4          610.5
B. Total Local Production      225.0          236.2          248.0
C. Total Exports                75.0           78.8           82.7
D. Total Imports               403.7          342.7          359.8
E. Imports from the U.S.       246.3          258.6          271.5

   Exchange rate:               3.33          N/A          N/A

The above statistics are unofficial estimates.

Source: Mexican Secretariat of Commerce and Industrial Development 


Rank of Sector:         11
ITA Industry Code:      WRE

Mexico's needs for drinking water and irrigated water have forced the 
government to implement conservation and recycling programs.  Many 
municipalities and industries in the country lack the proper equipment 
to comply with the existing regulations.  Government officials have 
indicated that the only way to solve the water shortage problems is by 
encouraging private investment in industrial and municipal waste water 
treatment through build, operate, and transfer schemes. Also, the 
National Water Commission (CNA) has commented that the problem cannot be 
postponed and are already working with multilateral development banks to 
find new financial mechanisms to keep up with the needs and help 
industries comply with the environmental regulations.

DATA TABLE  (US$ millions)          

                                1994          1995          1996

A. Total Market Size          426.0          434.5          447.5
B. Total Local Production     111.0          113.9          118.0
C. Total Exports               25.0           27.0           32.0
D. Total Imports              340.8          347.6          361.5
E. Imports from the U.S.      204.5          208.6          231.4

   Exchange rate:               3.33          N/A           N/A 

The above statistics are unofficial estimates.


Rank of Sector:         12
Name of Sector:         CONSTRUCTION EQUIPMENT
ITA Industry Code:      CON

The construction industry is expected to begin recuperating during the 
last quarter of 1995 and increase its participation in the Mexican 
economy during 1996.  The concessions program initiated during the last 
administration has made it possible for the private sector to increase 
investments in roads, schools, hospitals, shopping centers, etc.  The 
larger construction companies now in Mexico have strategic alliances 
with important foreign construction firms to enhance their participation 
in this sector. The type of projects that are to be concessioned during 
the next five years will require modern imported equipment.  Also, 
Mexican authorities have indicated that  construction companies need to 
look for new technologies to build more homes at more affordable prices.    

DATA TABLE  (US$ millions)          

                               1994          1995          1996

A. Total Market Size          351.1          333.3         342.7
B. Total Local Production      37.6           36.0          36.7
C. Total Exports                7.3            7.5           7.9
D. Total Imports              320.8          304.8         313.9
E. Imports from the U.S.      220.2          202.6         214.8

   Exchange rate:               3.33          N/A           N/A

The above statistics are unofficial estimates.


Rank of Sector:         13
ITA Industry Code:      ACE

The construction, architecture and engineering industry has been the 
most dynamic sector of Mexico's economy during the last 20 years and is 
expected to start recuperating during the last quarter of 1995.  Mexico 
has ambitious plans for the next ten years and expects to expand and 
modernize its basic infrastructure by granting concessions to the 
private sector that would increase the demand of engineering services in 
areas such as pipelines for gas, power generation plants, roads, ports, 
and airports.  Engineering services would also be in demand by Mexico's 
large manufacturing companies for expansion of their present facilities.

DATA TABLE  (US$ millions)          

                               1994          1995          1996

A. Total Market Size          1188.6       1139.1         1177.9
B. Total Local Production      901.9        856.8          882.5
C. Total Exports                10.5         10.7           12.3
D. Total Imports               297.2        293.0          307.7
E. Imports from the U.S.       208.1        197.7          217.5

   Exchange rate:               3.33         N/A           N/A

The above statistics are unofficial estimates.


Rank of Sector:         14
ITA Industry Code:      ACR

The Mexican market for Air Conditioning and Refrigeration Equipment is 
principally supplied by domestic production (70 percent).  U.S. imports 
account for 78 percent of total imports with a market share of 23 
percent.  The commercial market accounts for around 70 percent of the 
total purchases. business opportunities are in the replacement parts 
market.  Due to the current economic situation in Mexico, the market for 
Air Conditioning and Refrigeration Equipment will decrease 10 percent 
during 1995, and it  expected to grow 3 percent in 1996.  Approximately 
15 percent of the national production is exported.  Mexico's emphasis on 
export promotion support growth during coming years.  Imports are 
currently being affected by the peso devaluation, and a reduction of 
imports  is expected.  However, the NAFTA should benefit the U.S. import 

DATA TABLE  (US$ millions)          

                               1994          1995          1996

A. Total Market Size          857.0          744.8          797.0
B. Total Local Production     705.8          613.3          656.4
C. Total Exports              105.9           91.9           98.5
D. Total Imports              257.1          223.4          239.1
E. Imports from the U.S.      200.6          175.9          191.7

   Exchange rate:               3.3           N/A             N/A


Rank of Sector:        15
ITA Industry Code:     MED

Local production of specialized medical equipment is minimal. The 
technology to produce high quality products  is not available in Mexico 
for local production. Imports are expected to register a 30 percent 
decline due to the government agencies (IMSS and ISSSTE) delay in 
publishing bids until mid-June, 1995. U.S. imports will be affected as 
well. The industry in general may reveal a decline of 9 percent. 

The local production of medical disposable products will register an 
increase of approximately 12 percent in 1995. Large foreign companies 
have local production facilities to serve the market. Imports will be 
hard hit with an expected decrease of approximately 45 percent in 1995. 
Among the products affected are syringes, catheters, bandages, gauze, 
etc. U.S. imports will decrease approximately 39 percent during the same 
time period.

Although the market will be depressed in 1995, it is expected to recover 
more easily than other markets, mainly due to the strong support and 
priority that President Zedillo has promised for those public 
institutions providing services related to the well-being of the people, 
including social security and medical services. The market for medical 
instruments and equipment is expected to grow at least five percent on 
average per year starting in 1996.

Best prospects include: X-ray equipment, laser equipment, endoscopy 
equipment, anesthetic equipment, ultrasound equipment, and instruments 
for general surgery endoscopy, ophthalmology, laparoscopy, neurosurgery 
and urology. The most important competitive factors are high technology, 
quality, service, maintenance, and price. There will be good 
opportunities for U.S. firms in the medium term.

The international competitors in this market are the U.S., Germany and 
Japan with 55%, 15% and 11% of the import market share respectively.

DATA TABLE  (US$ millions)          

                             1994          1995          1996

A. Total Market Size        793.0          780.8          856.0
B. Total Local Production   421.7          502.0          566.0
C. Total Exports             12.7           14.0           15.3
D. Total Imports            384.0          292.8          305.3
E. Imports from the U.S.    199.4          171.5          180.0

Exchange rate:                3.33          N/A           N/A

The above statistics are unofficial estimates.


Rank of Sector:         16
Name of Sector:         OIL/GAS FIELD MACHINERY 
ITA Industry Code:      OGM  

The oil and gas industry in Mexico is in the process of change.  to 
accomplish its objectives it will  increase its purchases of oil and gas 
field machinery during the next ten years.  The reforms made to Article 
28 of the Mexican constitution will offer concession opportunities in 
the areas of natural gas to industries, including to PEMEX refineries, 
petrochemical plants, and to residential areas.  The concessions program 
also  transfers  power generation plants, now operated by the national 
utility company (Federal Electricity Commission), to the private sector,  
to convert  plants to natural gas.  Mexico is expected to  increase oil 
and gas production.  This will require the importation of  field 
machinery.  The companies concessioned to distribute natural gas and 
increase the distribution of LPG in Mexico City will need to upgrade the 
underground gas pipelines, therefore increasing  imports of machinery.  
PEMEX, the government owned petroleum company, will need to upgrade its 
seven refineries to produce quality secondary and tertiary 
petrochemicals.   Interested private companies and PEMEX officials have 
indicated that they cannot postpone imports of oil and gas field 
equipment to make the industry more competitive and meet the needs of 
the domestic market.

DATA TABLE  (US$ millions)          

                              1994          1995          1996

A. Total Market Size          500.0          451.0          463.6
B. Total Local Production     560.0          532.0          547.9
C. Total Exports              300.0          532.0          547.9
D. Total Imports              240.0          228.0          237.1
E. Imports from the U.S.      178.0          155.0          165.9

   Exchange rate:               3.33          N/A           N/A 

The above statistics are unofficial estimates.


Rank of Sector:         17
ITA Industry Code:      PRT

Business opportunities are focused on port equipment rather than on 
shipbuilding equipment.  The Mexican government is in the process of 
concessioning port terminals.  Bids for concessions of terminals (BOT-
Build/Operate Transfers) for the four largest ports (Altamira, Lazaro 
Cardenas, Manzanillo and Veracruz) were released on February 27, 1995.  
These four BOTs should represent opportunities as they begin to make 
major purchases during 1996.  Other ports are expected to make major 
purchases in 1997.  The Integral Port Administration model (API-
Administracion Portuaria Integral) will be responsible for concessioning  
terminals (containers, fluids, bulks, cruise lines, etc.) and awarding 
contracts for facilities and services.  All ports including the 4 noted 
above will go through this process.  These projects (concessions, 
contracts for facilities and services) have been underway to make the 
Mexican ports more competitive.  Some ports that are going through 
upgrades are: Coatzacoalcos, Ensenada, Guaymas, Manzanillo, Mazatlan, 
Progreso, Topolobampo, Quintana Roo and  Zihuatanejo.

DATA TABLE  (US$ millions)          

                              1994          1995          1996

A. Total Market Size          321.1          268.2         348.5
B. Total Local Production      92.9           88.4          91.1
C. Total Exports               28.7           34.3          20.8
D. Total Imports              256.9          214.1         278.2
E. Imports from the U.S.      172.3          150.2         211.5

   Exchange rate:               3.33          N/A          N/A

The above statistics are unofficial estimates.


Rank of Sector:         18
Name of Sector:         COSMETICS AND TOILETRIES
ITA Industry Code:      COS

Local production for 1995 is expected to reach a 17 percent growth rate. 
Nevertheless, it will not be reflected in terms of the total value of 
the market.  This is due to the devaluation of the peso which affects 
the value of  local production. Production facilities are available 
through large companies  who have recently opened plants in the states 
of Guanajuato and Queretaro (central Mexico). Imports will have a 
negative impact of approximately 55 percent. Even though local 
production serves most of the market, the industry will probably show a 
decline of 3 percent due to the recession. U.S. imports are highly 
affected since prices in dollars make a big difference when compared to 
local products. In the past, large enterprises established in Mexico 
were both producing locally and importing goods mainly from the U.S. The 
trend now shows a preference for production. There will be opportunities 
for U.S. firms in the medium term as long as they offer an outstanding 
product with excellent quality at a reasonable price. Consumers in the 
middle high and high income levels may be loyal to upscale imported 

DATA TABLE  (US$ millions)          

                              1994          1995          1996

A. Total Market Size          479.4          423.9          469.6
B. Total Local Production     272.0          232.0          271.4
C. Total Exports               43.0           46.0           49.2
D. Total Imports              250.4          237.9          247.4
E. Imports from the U.S.      150.2          145.7          151.5

   Exchange rate:               3.33          N/A          N/A

The above statistics are unofficial estimates.


Rank of Sector:         19
ITA Industry Code:      MTL

Imports of machine-tools and metalworking equipment are expected to 
decrease in 1995, but increase in 1996 to meet the demand for Mexico's 
industrial modernization program that centers on increasing exports and 
improving the quality of  products. To increase its exports, Mexico 
needs to invest in machine tools and metal-working machinery and 
equipment. Locally manufactured machine tools are limited.  The 
devaluation of the peso will prevent many firms from contemplating 
expansion, the exception would be for export growth firms.  This 
situation could change by late 1995 -mid 1996, depending on the recovery 
of the economy.

U.S. market share has been decreasing during the past few years.  
Manufacturers from Japan, Germany, Italy and other industrialized 
nations have been providing  comprehensive post-sales service, while 
Brazilian and Chinese companies provide less expensive products.

Since most machine-tools and metalworking equipment are capital 
expenditures, credit is a key decision factor affecting imports.  
Mexican importers usually prefer to work on 60 to 90 day credit terms, 
with low prices and quality products being important  incentives.  Large 
companies that order custom-made machine tools usually pay 20% of the 
total value when placing the order, 30% when the machine is completed 
and 50% when the machine is delivered and tested.  

U.S. made machine tools are considered more durable than the machines 
manufactured in Mexico and other countries.  Seven out of 10 machines 
imported from the U.S. are  not adjusted correctly, and they are not 
serviced in a timely manner.

List of most promising subsectors:
Parts and accessories for machine-tools.
Multi-process welding equipment.
Hydraulic and mechanical presses, guillotines & shears.  
Numerically-controlled grinding, honing machines.
Numerically-controlled presses.
Grinding, honing, threading machines.
Planners, sharpening, broaching, drawers and other cutting machines.
Boring and threadmaking attachments.
Numerically-controlled milling, boring and copying machines.
Machine-tools operated by laser

DATA TABLE  (US$ millions)          

                              1994          1995          1996

A. Total Market Size          425.6         213.5         240.6
B. Total Local Production      32.6          32.6          35.8
C. Total Exports               31.2          31.2          32.7
D. Total Imports              424.2         212.1         237.5
E. Imports from the U.S.      256.8         128.4         141.2

   Exchange rate:               3.33         N/A          N/A

The above statistics are unofficial estimates.


Rank of Sector:         20
ITA Industry Code:      LAB

Local production for laboratory instruments is limited and most of the 
market is served by imports.  However, imports will decrease 
approximately 40 percent in 1995 due to the high  dollar prices for 
specialized and high-tech instruments. The sector will most likely show 
a decline of at least 30 percent in 1995. At the moment, local 
laboratories do not have the financial resources to acquire 
sophisticated instruments. The only sub-sector which may have a positive 
growth is glassware, since there is strong local production. The Program 
for the Support of Science in Mexico (PACIME) is run by the government 
agency CONACYT, and there are still some funds available for the 
acquisition of laboratory instruments for schools and colleges through a 
World Bank loan.   PACIME may start issuing bids in the summer of 1996. 
U.S. imports will be affected in the short term since the laboratory 
instruments industry is not a basic need. Eventually in the medium and 
long term there will be more opportunities for U.S. firms wanting to 
introduce high-tech instruments to the Mexican market.

DATA TABLE  (US$ millions)          

                              1994          1995          1996

A. Total Market Size          253.7        150.3         170.3
B. Total Local Production      67.0         36.9          42.0
C. Total Exports               32.3         29.0          31.1
D. Total Imports              219.0        142.4         159.4
E. Imports from the U.S.      170.8        119.6         133.9

   Exchange rate:               3.33        N/A          N/A

The above statistics are unofficial estimates.


Rank of Sector:         21
ITA Industry Code:      FPP

There are opportunities for U.S. producers of packaging machinery 
including the processed foods industry and Mexican export industries.   
Because the peso had been overvalued, retailers imported large amounts 
of products such as canned pineapple and peaches. These products were 
traditionally produced and packed locally. With the peso devalued, local 
packers are again competitive. They will need to fill the gap left by 
the drop in imported products. This market is expected to grow 
approximately 5 percent. Local manufacturers of processing and packaging 
machinery have only a small part of the market. They do not have the 
available technology for many applications. The current situation 
provides an opportunity for U.S. manufacturers to recapture market share 
against European competition. Food processing and packaging equipment 
are still needed.

Favorable financing terms will be extremely important to help local 
firms acquire the equipment.

DATA TABLE  (US$ millions)          

                             1994          1995          1996

A. Total Market Size          147.4       150.6         163.9
B. Total Local Production      24.8        19.1          21.3
C. Total Exports               12.3        13.5          14.7
D. Total Imports              134.9       145.0         157.3
E. Imports from the U.S.      101.2       109.3         120.2

   Exchange rate:               3.33       N/A          N/A

The above statistics are unofficial estimates.


Rank of Sector:         22
ITA Industry Code:      HTL

The Mexican hotel industry is ranked eighth worldwide by number of rooms 
and is expected to grow five to six percent annually in the next four 
years as a    result of increased private investment in the sector.  

Tourism is one of the highest priority sectors of the economy.  It 
supports two million jobs and generates foreign income in excess of USD 
3.8 billion annually.  This industry is a source of significant domestic 
and foreign investment and second only to petroleum in foreign exchange 
earnings.  Time-sharing has become an important tool in this sector.  An 
investment of USD 9 billion will be required to develop 22 major 
projects throughout the country.  Modernization of toll highways, 
airports and telecommunications infrastructure is underway in order to 
provide better service to 30 million tourists (Mexican and foreign).  
Charter bus trips are increasing in frequency and volume.  Major changes 
are expected in the tourism industry, since 100 percent ownership in 
hotels and restaurants is allowed.

Sixty eight percent of Mexican imports of hotel and restaurant equipment 
and supplies are from the United States.   Japan, Germany and Italy  are 
increasing their market share more rapidly than the U.S.  They offer 
more competitive financing terms and after-sales service.

List of most promising subsectors:
Food processing equipment for hotels and restaurants
Hotel china and cutlery
Water coolers, purifiers, dishwashers, scales and parts

DATA TABLE  (US$ millions)          

                             1994          1995          1996

A. Total Market Size        282.7        289.9          298.3
B. Total Local Production   192.0        197.8          201.6
C. Total Exports             66.4         69.7           73.2
D. Total Imports            157.1        161.8          169.9
E. Imports from the U.S.     95.7         98.6          103.5

Exchange rate:                3.33        N/A            N/A

The above statistics are unofficial estimates.


Rank of Sector:         23
ITA Industry Code:      MIN

The mining industry has been going through important changes during the 
last five years.  The 1992 mining regulations made it possible for 
greater private sector participation. The foreign investment regulations 
now make it possible for  firms to participate with 100 percent of the 
investment in concessions.  The federal government has indicated that it 
will encourage the private sector to participate in the concession of 
mineral reserves.  This trend will increase demand for more underground 
and open pit mining equipment by domestic and foreign mining companies 
already in the market and new foreign firms that are in the process of 
obtaining their concession authorizations.

DATA TABLE  (US$ millions)          

                              1994          1995          1996

A. Total Market Size          231.0        219.5          228.1
B. Total Local Production      88.9         84.5           86.2
C. Total Exports                8.8          8.4            8.7
D. Total Imports              150.9        143.4          150.6
E. Imports from the U.S.       95.0         90.3           97.9

   Exchange rate:               3.33         N/A           N/A

The above statistics are unofficial estimates.


Rank of Sector:         24
ITA Industry Code:      RRE

The railroad industry in Mexico used to be a strategic sector reserved 
to the government.  Article 28 amended the constitution to allow private 
investment in the Mexican railroad (FNM-Ferrocarriles Nacionales de 
Mexico).  The privatization of FNM will create business opportunities 
for over USD 72 billion during the next 10 years especially for the 
repair and maintenance of existing equipment and in the construction of 
container terminals in Mexico, Monterrey, Guadalajara and San Luis 
Potosi.   About 10,000 kilometers of railways require maintenance.  Once 
the new concessions are granted, good business opportunities should 
develop for U.S. manufacturers of railroad cars and parts.  The main 
objectives of the railroad modernization include: opening several 
railroad services to private investment (maintenance workshops for 
locomotives and cars, weighing services, etc.); investing around USD 373 
million during the period 1994-1998, to acquire 130 new locomotives; 
modernizing traffic control systems with an investment of USD 450 
million during the next five years; and, reconstruction and replacement 
of about 6,330 freight cars in the next five years.  

DATA TABLE  (US$ millions)          

                              1994          1995          1996

A. Total Market Size          144.3         96.1         125.1
B. Total Local Production      11.8          8.7          11.1
C. Total Exports                4.3          4.7           5.2
D. Total Imports              136.8         92.1         119.2
E. Imports from the U.S.      116.2         78.1         101.5

   Exchange rate:              3.33          N/A          N/A

The above statistics are unofficial estimates.


Rank of Sector:         25
Name of Sector:         OIL, GAS, MINERAL PRODUCTION/
                        EXPLORATION SERVICES
ITA Industry Code:      OGS

The services required to upgrade existing oil, gas, and mineral 
facilities in Mexico will increase during the next ten years.   
Modification of Article 28 of the Mexican constitution will allow  
foreign investment.  More service firms will increase their share in 
this market to meet increase demand.  This sector is considered by the 
Mexican government and by private firms to have great potential.  
Private consultants play an important role in helping the industry and 
government owned companies  become more efficient competitive to 
generate more export revenues.  Participation of the private sector in 
these areas will increase demand for private consultants.     

DATA TABLE  (US$ millions)          

                              1994          1995          1996

A. Total Market Size          210.0        195.5          202.0
B. Total Local Production     120.0        112.8          115.6
C. Total Exports               40.0         40.8           42.0
D. Total Imports              130.0        123.5          128.4
E. Imports from the U.S.       71.5         67.9           71.9

   Exchange rate:              3.33         N/A           N/A

The above statistics are unofficial estimates.


Rank of Sector:         26
Name of Sector:         INSURANCE SERVICES
ITA Industry Code:      INS

Mexicans are increasingly purchasing insurance policies.  Due to the 
economic crisis and high un-employment rate, the sale of insurance 
policies has grown over 7 percent in the first quarter of 1995.  The 12 
insurance companies listed in the Mexican Stock Exchange increased sales 
by 29.8 percent in the first quarter of 1995 compared with the same 
period in 1994.  Life and Automobile insurance currently account for 65 
percent of the total policy value and are expected to continue growing.  
In the Mexico City metropolitan area, 65 insured automobiles are stolen 
every day of which only  43 percent are recovered.

Two major changes will cause an increase in the sector during in the 
next few years.  In August 1994, 11 foreign insurance companies were 
authorized to start operations in Mexico.  These companies will be 
limited to 8 percent of the market share.  The other factor effecting 
this sector  are changes in regulations.  In order to avoid that  
insurance policies lose their value, the National Insurance and National 
Bonding Commission are  suggesting that insurance companies apply new 
Investment Unit schemes (UDI-Unidades de Inversion).  The UDI is a new 
investment tool that adjusts for inflation.

The market is expected to grow 11% in 1995 and 13% in 1996.  However, 
the market value has been reduced due to the exchange rates.

DATA TABLE  (US$ Billions)          

                                 1994          1995          1996

A. Total Sales                    6.265          5.104       6.038
B. Sales by Local Firms           6.265          4.944       5.888
C. Foreign Sales by Local Firms     N.A            N.A         N.A
D. Sales by Foreign-owned Firms     N.A          0.016       0.150
E. Sales by U.S. owned Firms        N.A          0.015       0.135

   Exchange rate:                  3.33          N/A          N/A

The above statistics are unofficial estimates.


Name of Sector:  FEED GRAINS (CORN)

The U.S. will continue to be the source for imported corn in Mexico.  
Mexican imports of corn will increase in line with the zero-duty tariff 
rate quota enacted under the NAFTA.  Imports of wheat, sorghum, dry bean 
and rice will fall in 1995, reflecting both increased domestic 
production and the economic downturn caused by the peso devaluation.  
Imports of these products may increase in 1996 as the economy improves.

DATA TABLE  (Thousand Metric Tons)          

                              1994          1995          1996

A. Total Market Size          22755       22975          22373
B. Total Local Production     19519       18600          18200
C. Total Exports                 64           0              0
D. Total Imports               1678        2575           2652
E. Imports from the U.S.       1678        2575           2652

   Exchange rate:              3.33          N/A          N/A

The above statistics are unofficial estimates.



U.S. exports of apples and pears for 1995 is expected to be down 24 
percent from the previous year.  A slight recovery in sales is expect in 
1996.  However, U.S. apples and pears are viewed in the market as 
superior to the domestic product.  We can expect exports to return to 
pre-devaluation levels and more in the next few years assuming the 
Mexican economy continues its recovery and phytosanitary barriers are 

DATA TABLE  (Thousands Metric Tons)

                                1994          1995          1996

A. Total Market Size             995          908          918
B. Total Local Production        795          790          790
C. Total Exports                  50           50           50
D. Total Imports                 210          168          178
E. Imports from the U.S.         175          134          142

   Exchange rate:               3.33          N/A          N/A

The above statistics are unofficial estimates.


Name of Sector:   MEAT, BEEF, AND VEAL

Opportunities continue to be strong for fresh and special cuts.  After 
the recent peso devaluation, U.S. higher quality beef exports were 
affected less than lower quality cuts.  Generally lower U.S. prices for 
beef variety meats should continue to spur Mexican imports despite the 
peso devaluation.

DATA TABLE  (Metric Tons)

                             1994          1995          1996

A. Total Market Size          1918          1755         1690
B. Total Local Production     1810          1680         1560
C. Total Exports                 2             5            5
D. Total Imports               110            80          135
E. Imports from the U.S.        65            80           81

   Exchange rate:             3.33          N/A          N/A

The above statistics are unofficial estimates.


Name of Sector:  OILMEALS

U.S. exports of oilseeds and products will decline in 1995 due to 
depressed domestic demand and high financing cost.  A gradual recovery 
in demand for oilseed products is forecast for the last quarter of 
calendar 1995, with an improving outlook in 1996.  An expected decline 
in domestic soybean production in the fall of 1955 will increase demand 
for imported product.

DATA TABLE  (Thousands of Metric Tons)          

                              1994          1995         1996

A. Total Market Size          2690          2528         2629
B. Total Local Production     2272          2173         2264
C. Total Exports                 0             0            0
D. Total Imports               418           355          365
E. Imports from the U.S.       388           285          292

   Exchange rate:             3.33          N/A          N/A

The above statistics are unofficial estimates.


Name of Sector:  PET FOOD 

Mexican pet owners are increasingly using prepared pet foods as opposed 
to table scraps.  The outlook for exports over the next five to ten 
years is excellent. Supermarkets are the major retail outlet.  Heavy 
promotion efforts are needed to support new brands in the market.

DATA TABLE  (Thousands of Metric Tons)          

                             1994       1995         1996

A. Total Market Size          94         102          106
B. Total Local Production     68          71           74
C. Total Exports               1           1            1
D. Total Imports              27          32           33
E. Imports from the U.S.      25          30           31

   Exchange rate:           3.33          N/A          N/A

The above statistics are unofficial estimates.



Imports of U.S. whole chicken and parts will decline during 1995 because 
of the cost increase in these products and the prevailing import quotas.  
Imports of MDM poultry and offals will slightly decrease in 1995 but 
should recover later in the year.

DATA TABLE  (US$ millions)          

                              1994          1995          1996

A. Total Market Size          1453          1219          1292
B. Total Local Production     1109           944          1000
C. Total Exports                 0             0             0
D. Total Imports               344           275           292
E. Imports from the U.S.       275           220           233

   Exchange rate:             3.33           N/A          N/A

The above statistics are unofficial estimates.


Mexico's ambitious privatization programs initiated some eight years ago 
have been revitalized and in the coming months and years could include 
the transfer through concessions to the private sector of:

          22 Ocean ports through an integral port administration (API) 

          9 Ocean port terminals and others in the future.

          58 Airports.

          26,000 Kilometers of railroad lines, and intermodal yards.

          Up to 60 petrochemical plants.

          Natural gas urban distribution systems.

          Hundreds of miles of toll highways.

          Domestic long distance telephone service - allowing domestic 
and/or international competition.

          International long distance telephone service - allowing 
domestic and/or international competition.

          Satellite systems.  

The program was given priority after the December, 1994 devaluation of 
the peso through the GOM's January, 1995 economic recovery program.  To 
permit a wider range of privatization programs, the GOM started the 
process to change Article 28 of the Mexican Constitution by eliminating 
satellite and railroad systems as activities reserved for the GOM.  The 
constitutional change was approved late March, 1995 and was followed 
with  the approval of new laws and subsequent release of regulations.  
This change will permit both Mexican and foreign firms to participate in 
many of the above activities.   

This move towards further privatization permits the GOM not to use 
resources in sectors where private investors are willing to invest and 
develop.  Many of the above noted commercial activities and supporting 
equipment need to be modernized, and/or repaired/upgraded, this opening 
will provide many business opportunities in the coming years for 
American firms.  Upgrading the above commercial activities will require 
the purchase of many services and equipment from a wide range of firms. 
Interested American firms must be patient because the terms and 
conditions of many of these concessionary projects have not been 
released.  Further, the process can be lengthy and complex.  It is also 
important to seek out an effective joint venture partner, if one is 

Note: The Government of the United States acknowledges the contribution 
that outward foreign direct investment makes to the U.S. economy. U.S. 
foreign direct investment is increasingly viewed as a complement or even 
a necessary component of trade.  For example, roughly 60 percent of U.S. 
exports are sold by American firms that have operations abroad.  
Recognizing the benefits that U.S. outward investment brings to the U.S. 
economy, the government of the United States undertakes initiatives, 
such as Overseas Private Investment Corporation (OPIC) programs, 
investment treaty negotiations and business facilitation programs, that 
support U.S. investors. 




With the entry in to force of the NAFTA on January 1, 1994, Mexico  
further lowered its tariffs on U.S. and Canadian origin goods (see 
Documentation section below).  Mexican tariffs on U.S. goods are between 
ten and twenty percent ad valorem.  The highest Mexican tariffs tend to 
be on agricultural products and finished motor vehicles.  Under the 
NAFTA, tariffs on U.S. goods will be phased out over a maximum period of 
ten years, varying by type of good.  In 1995, the highest tariff is for 
those products with 20 percent import duties and classified in the NAFTA 
reduction schedule "C".  These products will pay 16 percent of duties in 
1995 and 14 percent in 1996.

Mexico has, in addition, a fifteen percent value-added tax (VAT) on most 
sales transactions, including foreign sales.  Basic products such as 
food and drugs (but not processed foods) are exempt from the VAT.  
Mexican customs collects the VAT on foreign transactions upon entry of 
the merchandise into Mexico.

Mexican customs also charges a nominal customs processing fee.  The 
following example shows how duties for foreign products affect the final 
price relative to a local manufacturer's price:

                                   U.S.          DOMESTIC
                               EXPORTER          MANUFACTURER

F.O.B. INVOICE VALUE                $100.00          $100.00
AD VALOREM DUTY  20%                  20.00             0.00
CUSTOMS PROCESSING FEE  0.8%           0.80             0.00
VALUE ADDED TAX  15%                  18.12            15.00
                                     --------         -------
TOTAL                               $138.92          $115.00


Customs valuation for U.S. origin products -- as defined by the NAFTA -- 
is based on the transaction value, F.O.B. at the Mexican port of entry.  
Where an "arms length" transaction does not exist between seller and 
importer, such as in intra-company sales or transfers, Mexico applies 
valuation rules that are compatible with the Brussels Customs Valuation 
Code.  Goods for which the NAFTA preferential tariff treatment is not 
requested are valued on a C.I.F. basis.

In November 1992 Mexico published a list of goods previously susceptible 
to fraudulent customs undervaluation and established a "minimum 
estimated price" for such goods.  Importers of subject goods -- 
including liquor, some apparel, blank cassette and audio recording 
tapes, disposable diapers, apples, and some household electronics -- 
must pay duties according to the minimum estimated price or, if goods 
are valued lower, post a bond with Mexican Customs to guarantee payment 
of the difference in tariffs due between the two valuations.  Exemptions 
from this regulation exist for active or highly capitalized importers.


Under the NAFTA, Mexico has abolished its import licensing requirements 
for U.S. origin goods.  Various agricultural products and finished motor 
vehicles, however, remain subject to tariff rate quotas.  Such tariff 
rate quotas trigger significantly higher duties after a predetermined 
quantity threshold of imports is exceeded.

The U.S. and Mexico also negotiated under the NAFTA preferential duty 
treatment for limited quantities of some non-originating textiles and 
apparel exported from the U.S.  Mexico is obligated to administer the 
"tariff preference level" and tariff rate quota system by distributing 
import quotas impartially among Mexican importers.

The NAFTA provides that for the first ten years of the agreement Mexico 
may adopt or maintain prohibitions or restrictions on the importation of 
certain used goods.  These are, primarily, construction machinery and 
heavy equipment (except when imported temporarily under provisions in 
the cross-border services chapter of the NAFTA), industrial machinery, 
electronic data processing equipment, motorcycles, motor homes and 
campers, and most trailers and tankers (except to transport inbound 


Mexico has few export controls.  Exceptions include endangered plants 
and animals, whether live or products from such plants and animals 
(Mexico is a signatory of the International Convention on Trade in 
Endangered Species), logs of all species, archeological pieces and items 
deemed to be part of the Mexican national patrimony.  


The basic Mexican import document is the "pedimiento de importacion".  
This document must be accompanied by a commercial invoice (in Spanish), 
a bill of lading, and documents demonstrating guarantee of payment of 
additional duties for undervalued goods (see "Customs Valuation") if 
applicable, and documents demonstrating compliance with Mexican product 
safety and performance regulations (see "Standards"), if applicable.  
The import documentation must be prepared and submitted by a licensed 
Mexican customs broker only.

Products qualifying as North American must use the NAFTA Certificate of 
Origin in order to receive preferential treatment.  This may be issued 
by the exporter or broker, and does not have to be validated or 
formalized.  Certificate of Origin information is available on the NAFTA 
Facts in documents 5000-5003 at telephone number (202) 482-4464.  The 
Certificate of Origin may be issued by government agencies, producers, 
exporters, or industrial and commercial chambers of commerce or 
associations that are legally authorized in the U.S. or other countries.

Some goods may be subject to antidumping duties applied against goods 
originating in the People's Republic of China.  To prove that a good is 
not Chinese, importers must submit a certificate of origin and provide a 
sworn statement as to the origin of the merchandise.  Beginning in late 
1994, certificates covering certain third-country originating textiles 
apparel and footwear will have to be signed and stamped by an official 
of the exporting country whose signature has been previously registered 
with the Mexican Trade Ministry.  Certificates for goods from non-GATT 
countries must, in addition, be signed by a Mexican diplomatic 
representative in that country.   These provisions will not apply to 
U.S. origin goods or those eligible to be marked as U.S. goods under the 
NAFTA's marking rules.

Mexican customs law is very strict regarding proper submission and 
preparation of customs documentation.  Errors in paperwork can result in 
fines and even confiscation of merchandise as contraband.  Exporters are 
advised to ensure that Mexican clients employ competent, reputable 
Mexican customs brokers.


The Government of Mexico (GOM) has traditionally been the primary actor 
in determining product standards, labelling and certification policy, 
with little input from the private sector and less from consumers.  As a 
result, independent standards and certification organizations like those 
in the U.S. are virtually non-existent in Mexico.  The Ministry of Trade 
has begun efforts to reverse this situation, shifting responsibility for 
the formulation of voluntary standards to the private sector or to mixed 

In 1992, the GOM undertook an ambitious project to revamp its entire 
system for formulating product standards, testing, labelling and 
certification regulations.  The cornerstone of this review is the 1992 
Standardization and Metrology law, which provides for greater 
transparency and access by the public and interested parties to the 
regulation formulation process.  This exercise has resulted in a 
reduction of obligatory product standards to just above three hundred.  
The process is not without its problems, as poorly drafted regulations 
and inadequate communication between enforcement agencies, such as 
customs, have occasionally led to trade disruptions.  In such instances 
the GOM has been receptive to U.S. concerns and willing to resolve 

Under the NAFTA, Mexico has affirmed its GATT obligations to meet 
international standards.  Mexico is committed to making its standards 
compatible with the U.S. by 1998.  In addition, Mexico has taken 
tentative steps toward reciprocal recognition of foreign standards and 
accreditation of foreign test laboratories.

Mexico, the United States and Canada will, to the greatest extent 
possible, make their standards-related measures compatible.  By 1998,  
conformity assessment bodies located in the United States will be able 
to apply for accreditation to test products to Mexican standards.

According to a decree published in Mexico's Federal Register ("Diario 
Oficial") on March 7, 1994, effective the next day, all products sold in 
Mexico must bear a label in Spanish prior to being imported to Mexico.  
Products which must comply with NOM's (Normas Oficiales Mexicanas- 
product standards) must use labelling language specified in the NOM.  If 
no NOM is required or if the NOM does not specify labelling 
requirements, the product must bear a label containing the information 
noted below in Spanish.

The Spanish language label can be added to the existing English-language 
label and must contain at least the following information:

o Name or business name and address of the importer
o Name or business name of the exporter

o Trademark or commercial name brand of the product

o Importer's RFC ("Registro Federal de Causantes") number
  and/or their industry association registration number

o Net contents (as specified in NOM-030-SCFI-1993)

o Use, handling, and care instructions for the product as required

o Warnings or precautions on hazardous products
This information must be presented attached to the product, packaging or 
container depending on the product characteristics. This information 
must be on products prepared for retail sale. Listing this information 
on the container in which a good is packed for shipment will not satisfy 
the labelling requirement.

Per this decree, Mexico does not explicitly state that country of origin 
is required on the label prior to importation. However, Mexican 
labelling regulations do require country of origin designation, and the 
U.S. Department of Commerce recommends that exporters include this 
information, in Spanish, on the labels they are preparing for goods 
destined for retail sale in the Mexican market.


The March 7 decree provides a list of products, by Mexican tariff 
number, which are subject to NOM's. Beside each item is the applicable 
NOM. (This list has been reproduced on NAFTA Facts (202-482-4464) 
document # 1302).  With the exception of products which reference NOM-
004-SCFI-1993 (the textiles labelling decree) and NOM-020-SCFI-1993 (the 
leather labelling decree), all products listed must comply with NOM  
certification requirements.  This means that these products must have 
been tested in Mexico, found to have complied with the applicable NOM, 
and granted a certificate attesting to the fact that the product meets 
the applicable NOM.

Mexico is currently revising many of its standards, eliminating some, 
and upgrading or adding others.  Current information on Mexico's 
standards systems can be obtained from the Office of Mexico's NAFTA 
Facts system.  Included on the system are a list of products currently 
subject to mandatory standards, lists of accredited laboratories, a 
description of Ministry of Health procedures, information on ordering 
copies of Mexican standards, and an overview of Mexico's standards 
system.  Call (202) 482-4464 and order document # 1101, Standards and 
Labelling Menu. 

Information on how to obtain a Mexican Standard and how to obtain 
certification can be found on NAFTA Facts documents # 1301 and 1303.


                           INVESTMENT CLIMATE


In December of 1993, the government passed a foreign investment law that 
replaced a restrictive 1973 statute.  The law is consistent with the 
foreign investment chapter of the NAFTA and opened more areas of the 
economy to foreign ownership (see Table 1 below which outlines the 
percentage of foreign ownership allowed in restricted sectors of the 
economy).  It also provided national treatment for most foreign 
investment, eliminated all performance requirements for foreign 
investment projects, and liberalized criteria for automatic approval of 
foreign investment proposals.

NAFTA investors receive both national and Most Favored Nation (MFN) 
treatment in setting up operations or acquiring firms, except where 
reservations have been specifically made for certain types of 
industries. States, provinces, and local governments must accord 
national treatment to investors from any of the NAFTA countries.


Mexico's economy is open in this regard, due to the requirements of its 
membership in the NAFTA and its accession to the OECD.  In general, 
capital and investment transactions, remittance of profits, dividends, 
royalties, technical service fees, and travel expenses are handled at 
the market-determined exchange rate.


Under the NAFTA, Mexico may not expropriate property, except for a 
public purpose on a non-discriminatory basis.  Expropriations are 
governed by international law, and require rapid, fair market value 
compensation, including accrued interest.  Investors have the right to 
international arbitration for violations of this or any other rights 
included in the investment chapter of the NAFTA.  A NAFTA investor may 
choose either to seek monetary compensation through binding 
international arbitration or to use the domestic country's court system.


Both the GATT, which governs Mexico's trade with other GATT member 
nations and the NAFTA provide a mechanism for dispute resolution.  If a 
dispute can be addressed under either the NAFTA or the World Trade 
Organization (WTO), a country may choose either forum.  In the NAFTA, 
the  first step in dispute settlement is consultations.  Should 
consultations fail to resolve an issue within 30-45 days, any country 
may call a meeting of the NAFTA Trade Commission.  In the absence of a 
satisfactory solution there, disputes will be resolved by a balanced and  
mutually agreeable 5-member panel of experts.  Panel members will be 
chosen from a roster of trade, legal, and other experts, including 
experts from countries outside of the NAFTA.  The panel will issue its 
initial report within 90 days and a final report 30 days later.  Once a 
panel decision has been made, either country may request the 
establishment of a 3 person extraordinary challenge committee, comprised 
of judges or former judges from the two countries.  If any of the 
grounds for the extraordinary challenge are met, the panel decision will 
be overturned and a new panel will be set up.


Mexico has experienced a substantial increase in political violence over  
the last year.  The uprising by indigenous peasants in Chiapas in 
January of 1994; the assassination of ruling party presidential 
candidate Luis Donaldo Colosio the following March; and a series of 
high-profile kidnapping of business leaders in 1994 has kept investors 
and financial markets on edge.  Mexico's recent economic slowdown also 
has contributed to a substantial increase in street crime, although this 
generally has not had a significant effect on the overall investment 


The foreign investment law eliminates such restrictions as export 
requirements, capital controls, and domestic content percentages, which 
are prohibited under the NAFTA.  Foreign investors already in Mexico may 
apply for cancellation of prior commitments.  Failure to apply for 
revocation of performance requirements will result in their staying in 


Most foreign investors operate in Mexico through corporations 
(Sociedades Anonimas).  Foreign-owned corporations are subject to the 
same laws as local companies as well as any special regulations 
governing foreign investment.  A Mexican corporation must have at least 
five shareholders and, except in certain sensitive sectors, can usually 
be established within 1 - 2 months.  Costs of incorporation vary 
depending on the structure of the company but the minimum cost is USD 
1,500 - 2,000.

Upon registration with the Ministry of Foreign Relations(SRE), Mexican 
companies with foreign participation will be allowed to own land in 
restricted border (within 100 kilometers) and seacoast (within 50 
kilometers) areas for non-residential purposes. 


Mexican laws regarding Real Estate are markedly different than those in 
the U.S.  Non-Mexican citizens cannot own property within 50 kilometers 
of the sea coasts or within 100 kilometers of the Mexican border.  
Property within those areas can be leased through 30 year trusts held by 
Mexican banks.  Foreign investors can acquire such property for 
commercial purposes by establishing a Mexican subsidiary.  Because of 
these restrictions and  the complicated rules governing the purchase of 
property, time shares, or condominiums, the U.S. Embassy strongly 
recommends that U.S. citizens obtain competent legal advice  prior to 
any purchase of property in Mexico. A list of English speaking Mexican 
attorneys can be obtained at the U.S. Embassy or an American Consulate 
in Mexico.


For sectors not covered in Table 1 below, foreign investment 
applications are automatically approved unless they exceed 85 million 
new pesos (currently about USD 13.7 million), in which case they require 
approval of the National Foreign Investment Commission.  The amount 
triggering the approval requirement will be determined annually. The 
Commission is comprised of representatives of the secretariats of 
government, Foreign Relations, Finance and Public Credit, Social 
Development, Energy, Commerce and Industrial Development, Communications 
and Transport, Labor, and Tourism.  The Commission must act on 
applications within 45 working days.  Criteria for approval include 
employment and training opportunities, technology transfer, and 
contributions to productivity and competitiveness.  The Commission may 
reject applications to acquire Mexican companies for national security 
reasons.  The Foreign Relations Secretariat must issue permission for 
foreigners to establish or change the nature of Mexican Companies.

          Table 1
          Sectors Reserved for the State

l)  Petroleum and other hydrocarbons
2)  Basic petrochemicals
3)  Telegraphic and radio telegraphic services
4)  Radioactive materials
5)  Railroads
6)  Satellite communications
7)  Electricity
8)  Nuclear energy
9)  Coinage and printing of money
10) Mail
11) Control, inspection and surveillance of maritime ports, inland ports 
    and heliports

       Sectors Reserved for Mexican Nationals

1)  Retail sales of gasoline and liquid petroleum gas
2)  Non-cable radio and television services
3)  Credit unions, savings and loan institutions, and
    development banks
4)  Certain professional and technical services
5)  Land transportation within Mexico of passengers and freight (to be
    eliminated with up to 49, 51, and 100 percent foreign investment 
    permitted  in 1995, 2000 and 2004, respectively), but not
    including messenger or package delivery services.

In certain other sectors, foreign investment may be limited to a 
minority position.


Mexico and the United States have signed a tax exchange information 
agreement to assist the two countries in enforcing their tax laws.  The 
agreement covers information that may affect the determination, 
assessment, and collection of taxes, and investigation and prosecution 
of tax crimes.  A financial information exchange agreement took effect 
in 1995 which permits the exchange of information with respect to 
certain currency transactions in order to combat illicit activities.  
The two countries also have signed a bilateral tax treaty, the basic 
purpose of which is to avoid double taxation of income and to prevent 
tax evasion.


At this time, Mexico does not offer insurance with the Overseas Private 
Investment Corporation (OPIC).


Mexico's federal labor law, enacted in 1931 and revised in 1970, is 
based on Article 132 of the Mexican Constitution.  Mexican workers enjoy 
the right to associate, bargain, and strike.

The labor law sets a standard 48 hour work week with one paid day of 
rest.  For overtime, workers must be paid twice their normal rate and 
three times the hourly rate for overtime in excess of nine hours per 
week.  Employees are entitled to a number of holidays, paid vacation 
(after one year of service), vacation bonuses, and an annual bonus 
equivalent to at least two weeks pay.  Companies are also responsible 
for additional costs on behalf of the employee in accordance with the 
federal labor law.  These usually add about 30-35 percent to the basic 
wage cost.  Both employers and employees contribute to the Mexican 
social security system; employers' costs for the program range from 12 - 
15 percent of salaries.  Employers must also contribute a tax-deductible 
2 percent of each employee's salary into an individual retirement 

The strength of organized labor in Mexico has generally been on the wane 
over the past decade, particularly during the economic crisis years of 
1982-1987.  The country's large labor unions generally have supported 
the government's economic restructuring program in part because real 
wages in most sectors of the economy have begun to rise.  The Federal 
Labor Law provides that a union can be constituted with a minimum of 20 
workers.  For the past few years, strikes have been limited and they are 
usually settled quickly.  Strikes which are more difficult will usually 
draw government mediators to help facilitate the settlement process.


In an effort to expand employment and training opportunities, the 
Mexican government established a maquiladora program, which allows duty 
free imports of machinery, parts and raw materials for the assembly and 
finishing of products in Mexico for re-export to the United States.  
Generally, if the parts are of U.S. origin and are not substantially 
transformed abroad, U.S. import duties are levied only on the value 

Special incentives are available to companies which set up manufacturing 
plants  within 13 miles of the northern or southern border and the free 
zones which include both states on the Baja California peninsula, 
Quintana Roo, and the northern part of Sonora bordering on the United 
States.  Companies in these areas may obtain up to 100 percent reduction 
of import duties on machinery, equipment, spare parts, and raw materials 
for a maximum of 10 years from the time they begin operations.  To 
qualify, companies must manufacture products not produced elsewhere in 
Mexico.  Mexico also has two free ports:  Puerto Mexico (Coatzacoalcos) 
and Salina Cruz.


As noted above, there are no restrictions on capital and investment 
transactions, which are handled at a market-determined exchange rate.


See appendix D


                      TRADE AND PROJECT FINANCING  


There are many points to consider to "Get Paid" promptly and the two 
most important points are completing export documents correctly 
including the banking paperwork and identifying a secure method of 
payment.  In general terms, there are two basic situations when the 
export documentation process must be exact and the payment terms and 
conditions secure: 1) when starting to sell into Mexico; and 2)when an 
economy is in a recession as is the current situation.  The following 
single scenario is used to provide information and to illustrate the 
relationship of export documents and "getting paid." 

Delivering products to one of the U.S. Mexican gateways is not 
complicated.  However, crossing the border and having the shipment 
delivered to the consignee is another matter.

There is no room for error in the preparation of export documents. 
Documents should be forwarded the same day the shipment leaves the 
factory or point of origin. Original export documents should not be 
entrusted to truck drivers for delivery to anyone.

The border crossing process of the shipment can be complicated due to 
the many different parties involved.  Basically, 80 percent of trade 
between the United States and Mexico moves via truck with American 
exports delivered to a U.S. freight forwarder. The shipper's original 
commercial invoice, packing list and export documentation should be 
waiting at the American freight forwarder's warehouse. No export 
processing can commence until all original documents are received.

After the U.S. freight forwarder checks the accuracy of the documents, 
the export documents are delivered to the consignee's designated Mexican 
customhouse broker. The Mexican customhouse broker prepares a quotation 
for the importer that includes duties (if any), a customs user fee, 
transportation charges, etc. All transportation charges, duties and fees 
must be paid before the shipment can enter Mexico.

This is the point in the process where problems can occur and 
relationships strained (shipment is still in the U.S. side).  The 
primary reason being that the consignee may not have the financial 
resources to pay the bill if the payments terms and conditions are not 

Upon payment of the invoice by the consignee, the Mexican customhouse 
broker prepares the "Pedimento de Importacion," the request to import.  
Once the duties are paid and the Mexican custom's documents are stamped, 
the U.S. freight forwarder turns the trailer over to a U.S. transfer 
carrier to deliver the trailer to Mexico for  the interior of the 
country. The average time to perform the above process, assuming that 
the documents are correct, is between 40 to 48 business hours.

Further, Mexican customs determines by a random computer program whether 
the trailer will or will not be inspected by a Mexican Customs 
Inspector. If the piece count of merchandise in the trailer does not 
match the declared count or if there are any discrepancies, penalties 
will be assessed.  The truck will not be allowed to leave the compound 
until the discrepancy is resolved and the penalties are paid.


Credit is limited and currently expensive in Mexico.   The current 
interest rate is between 40-60 percent with limited access to commercial 
bank financing by many prospective borrowers.  

Credit extended to the non-banking private sector by Mexico's commercial 
banks grew at an average nominal rate of 51 percent between 1990 and 
1993.  Because of the December 1994 devaluation of the peso, credit is 
now limited.    

The availability of credit should increase in late 1995 with the 
addition of new foreign banks and the return of economic stability.  
Financial factoring, leasing and general warehousing can be alternatives 
to banks in Mexico.  


1. Advance payment

Exporters will find few, if any, customers willing and/or able to 
purchase through advance payment.  Demand for advance payment may well 
prevent a sale.

2. Letters of Credit

Because of the current economic situation, an irrevocable and confirmed 
(on a U.S. bank) letter of credit (LC) provides a good measure of 
security for the exporter.  The key to determining the use of LC's is 
"knowing your customer."  Many Mexican companies are unwilling or unable 
to provide them.  In the past, banks generally issued letters of credit 
based on an ongoing credit relationship. The current economic situation 
has reduced the ability of some banks to issue LC's.  For companies 
which are not customers or which have fully utilized their approved 
lines, Mexican banks will demand cash collateral.  Companies with 
insufficient liquidity are unable to obtain letters of credit.  A large 
portion of Mexican companies fall under this category.  

Exporters should take advantage of LC's to provide financing.  This is a 
risk-free and relatively inexpensive way to finance a customer's 
purchase.  By discounting the drafts resulting from a time LC, a company 
can finance its customer at the rough equivalent of the prime rate or 
less for up to 180 days, and can pass the cost along to customer in the 
form of a slightly higher product price.

3. Documentary Collections

Given that an exporter's customer is unable or unwilling to provide an 
LC, that the exporter has a trusting relationship with the purchaser, 
and that the purchaser has reasonably sound finances, some form of 
documentary collection, whether sight or time, can be very useful.  
While this certainly entails more risk than an LC, it is also true that, 
contrary to popular belief, Mexican companies often possess business 
ethics equivalent to those of American companies.  Prudent credit review 
practices may permit U.S. companies to sell under this payment form 
without undertaking undue risk.  Use of the Commercial Service's World 
Trader Data Report (WTDR) can help assure the U.S. supplier of the 
credit worthiness of the Mexican firm.

4. Open Account

Many U.S. companies sell to Mexico via open account.  It is not all 
unusual, and their experience indicates that, again with prudent credit 
review practices, open account sales in Mexico need not be inherently 
risky.  Dun and Bradstreet is open in Mexico and credit information is 
available through the Commercial Service's WTDR.  For any sizeable 
transaction, exporters should demand financial statements just as they 
might in the U.S., and also should visit the customer's facility and 
meet with the major officers in order to assess their capacity and 

5. Standby Letters of Credit

Many companies export under  a standby LC.  This method can be extremely 
useful for frequent shipments, particularly small ones which fall below 
the minimum LC size at which banks begin to charge a percentage instead 
of a flat fee.  There are savings as well in terms of administration 
because no individual LC's are established or documented.  
Unfortunately, standby LC's in Mexico are expensive and they suffer from 
the same drawback as commercial LC's--the customer may not have  a  
credit line or may not be able forego the corresponding portion of its 
credit line.

6. Receivables Insurance

Several parties offer receivables insurance in Mexico.  The best known 
are the U.S. Export-Import Bank (EXIM), American International Group 
(AIG), and the Foreign Credit Insurance Association (FCIA).  EXIM's 
insurance carries the full faith and credit of the U.S. government.  The 
others are private insurance companies. 

This insurance can enable a company to give terms of up to 180 days to 
purchasers.  Knowledgeable international banks will finance insured 
receivables.   EXIM insurance is the most acceptable, but more banks are 
becoming comfortable with the private sector products.  The cost of the 
insurance and the financing can often be passed on to the customer in 
the form of a higher product price.  It is not recommended that 
financing costs, whether under insurance or any other financing 
mechanism, be set out as a separate line item such as in a proforma 
invoice since a Mexican tax liability will arise from the payment of 


The Export-Import Bank of the United States, an independent agency of 
the federal government, offers various short, medium and long-term 
export finance and insurance programs.  Of specific interest to U.S. 
exporters is the guarantees for medium-term loans to purchasers of 
capital equipment.  The loans are actually made by American banks with 
EXIM's guarantee.   EXIM is extremely active in Mexico.

Much of EXIM's activity is under so-called bundling facilities.  A 
bundling facility is a large medium-term loan made to a Mexican bank by 
an American bank with the guarantee of EXIM bank.  The Mexican bank then 
makes loans for the purchase of American capital goods to Mexican 
companies.  It undertakes the credit assessment and risk since it 
effectively counter-guarantees the loans it makes.

U.S. companies should direct their foreign buyers to one of the 
following approved Mexican financial institutions which employ bundling 

Arrendadora Bancomer
Banca Serfin
Banco del Atlantico
Banco Mercantil del Norte (BANORTE)
Banco Mexicano
Banco Nacional de Comercio Exterior
Banco Nacional de Obras Publicas (BANOBRAS)
Multibanco Inverlat

8. Local Sources of Customer Financing

Exporters should be aware that Banco Nacional de Comercio Exterior 
(Bancomext, Mexico's equivalent of EXIM) and Nacional Financiera 
(Nafinsa, a government owned national development bank) have programs to 
finance imports by Mexican companies.  Covered products include capital 
goods and technology intended to modernize companies to enable them to 
become more competitive and to export, as well as raw materials and 
other inputs.  Not all Mexican companies are aware of these programs, so 
American exporters may want to suggest them to potential customers if 
their products fall into these categories.


1. Commercial Banks

Mexico's commercial banks offer a full range of services within one 
institution.  These services range from offering deposit accounts, 
consumer and commercial lending, corporate finance and the operation of 
trusts and mutual funds to foreign exchange and money market trading.      

Mexico's commercial banking sector has been opened to foreign 
competition. The NAFTA  permits U.S. and Canadian banks or any other 
foreign bank with a subsidiary in the U.S. or Canada to establish 
wholly-owned subsidiaries in Mexico.  The first authorizations of 
foreign-owned banks were issued after July 31, 1994.    

Foreign banks are allowed to operate representative offices in Mexico; 
however, these offices may not undertaken financial intermediation, but 
may solicit customers for their parent bank.
The Ministry of Finance is the principal regulator of the banking 
system.  It is concerned with institutional issues such as licensing and 
sets credit and fiscal policies.  The Bank of Mexico (the Central Bank) 
implements these policies and also operates interbank check clearing and 
compensation systems.  The Bank of Mexico also manages a bank trust fund 
called FOBAPROA to which all commercial banks are required to 
contribute.  The National Banking Commission, a semi-autonomous 
government agency, is responsible for supervision and vigilance.  The 
Mexican Banking Association represents the interests of Mexico's banks.  

Many Mexican banks have a presence in the United States such as Banamex 
(owns California Commerce Bank, Los Angeles Cal.), and Bancomer (owns 
Grossmont Bank, La Mesa, California).  

2. Development Banks

The mission of development banks is to fill financing shortfalls in the 
commercial banking sector.  Mexico has seven government-owned 
development banks which provide services to specific areas of the 
economy.  The dominant institutions are Nafinsa and Bancomext. These 
institutions have become primarily second-tier banks which reach 
priority sectors by lending through commercial banks and other financial 
intermediaries such as credit unions, savings and loans and leasing and 
factoring companies.

Nafinsa's primary program funds micro, small and medium-sized 
businesses.  Nafinsa also undertakes strategic equity investments and 
contributes equity to joint ventures.

Bancomext provides financing for Mexican exports and to small and 
medium-sized companies.  It also offers working capital, project lending 
and training to firms in several specific sectors which require support, 
such as textiles and footwear.     

Exchange Controls

There are no controls on the transfer of dollars into and out of Mexico.  
This means that profits can be repatriated freely.    


Project financing is separated into pure project financing and financing 
for projects.  These two are not synonymous.

1. Pure Project Financing

Pure project financing requires that the only source of collateral, 
investment return, and loan repayment be revenues derived from services 
and/or products resulting from the investment.  The project must be 
self-financing, without reliance on guarantees or other undertakings 
from owners or third parties.  Examples of this type of financing is 
typically seen in utility industries such as electrical power, water 
supplies, drainage, and certain environmental projects. 

Financing is often provided by banks, investor groups, and large 
institutional investors such as insurance companies, as well as through 
public offerings of bonds and other capital market instruments.  Such 
financing is in its infancy in Mexico as the Government of Mexico (GOM) 
has in the past been the sole owner of these types of projects.  The 
financing required by the GOM has been handled either through large 
international loan syndications direct to the federal government or its 
operating entities through multilateral credits.  

Mexico has entered a new era with the privatization of sea ports, 
airports, railroads, satellite communications, power generation plants, 
natural gas distribution systems and other industries.  The winning 
Mexican and foreign firms of these activities will have to arrange the 
pure project financing required.
2. Financing for Projects

The winning Mexican and foreign firms of privatization projects will 
need to finance major purchases of both equipment and services.  
American firms should learn the programs of the EXIMBANK, the World 
Bank, the Interamerican Development Bank (IDB), and the recently 
organized North American Development Bank.  The U.S. Trade and 
Development Agency supports project feasibility studies.  There is also 
activity by the Japanese EXIM and other national export promotion 
entities, but they will be less useful to U.S. companies.

EXIM will finance the U.S. content portion of any major project, but 
otherwise does little in the way of project finance.  A new variation 
which comes closer to project financing is a Memorandum of Understanding 
between the EXIM and Mexico's Banco Nacional de Obras y Servicios 
Publicos (BANOBRAS, a national development bank).  This agreement allows 
EXIM to finance up to $500 million of U.S. exports of environmental 
goods and services over the next five years.  The agreement will promote 
the construction of waste-water treatment facilities by municipalities.

Refer to Appendix E for a listing of Mexican Commercial Banks and 
representative offices of U.S. Banks in Mexico.


                           BUSINESS TRAVEL 

The length of the work day varies somewhat, depending upon the region of 
the country and the type of organization.  Typically, in the Mexico City 
area companies may open at 9:00 or 9:30 am and work until 7:00 pm, with 
a long lunch beginning at 2:00 pm.  In the north, the work day may begin 
and end earlier, and lunch might be at 1:00 pm.  Federal government 
offices in Mexico City may begin at about 10:00 am, break at 2:00 or 
3:00 pm for lunch, and return at 5:00 or 6:00 pm to work into the 
evening until 9 p.m.  

Business visitors should come with a large supply of cards; they are 
used extensively.  

Mexicans make extensive use of professional titles (doctor, professor, 
licenciado, ingeniero).   It is courteous to address them by their 

There is respect for older and more senior members of a group.  

It is customary to shake hands with all upon arrival and departure.

As in the U.S., business may be conducted over a meal, especially 
breakfast or lunch.  

Business meetings in Mexico will often take longer than they would in 
the U.S.  
In conversation, Mexicans emphasize tactful and indirect phrasing.    

It is customary to send a small gift or greeting card at Christmas to 
key business contacts.


On April 1, 1994 a new Business Visitor's Visa (FMN) became effective.  
Similar to a tourist card, U.S. and Canadian businessmen can apply for 
the visa at a Mexican Consulate in the U.S. or upon arrival in Mexico.  
The FMN is issued gratis and is valid for up to 30 days.  Similar to 
tourists, applicants must present proof of citizenship and identity, 
e.g., a certified copy of their birth certificate, a passport, 
naturalization certificate, or a voters registration card.  If the 
citizenship document does not include a photo then an identification 
document with a photo must be presented to GOM immigrations officials.  
Business visitors may use this form for up to thirty days.  After thirty 
days they must obtain a FM-3 visa from Mexican Immigration officials.  
The charge for changing from FMN to FM-3 status varies according to the 
source of the businessman's salary, i.e. whether one is paid from within 
Mexico or from outside of Mexico.


Street crime is common, especially in urban ares.  Persons driving on 
some Mexican roads, particularly in isolated regions have at times been 
targets for robbery by bandits who operate primarily at night.  The U.S. 
Embassy advises its personnel not to travel on Mexican highways after 

On the weekend of January 1, 1994 armed insurgents launched attacks in 
San Cristobal, Chiapas, Mexico's most southern state. The situation is 
still unstable in most areas of Chiapas. The U.S. Embassy in Mexico City 
recommends that U.S. citizens take normal security precautions as 
appropriate while traveling not only in Chiapas but all areas in Mexico.  
U.S. citizens residing or traveling in Mexico may also contact the U.S. 
Embassy for further security information at:  Paseo de la Reforma 305, 
Col. Cuauhtemoc, 06500 Mexico D.F.
Phone (5) 211-0042, Fax (5)511-9980

Business travellers generally go from city to city via commercial 
airline.  There are two large ones, Mexicana and Aeromexico, and a 
number of newer regional lines.  Schedules have been expanded 
considerably, offering service to a wide range of secondary cities in 

For travel between Mexico City and nearby locations such as Puebla, some 
Mexican businessmen will use executive buses which offer airline style 
seating, beverage service, and movies on board.  The fares are 
considered reasonable.

In the cities, many business visitors choose taxis over car rentals.  
Metered taxis cruise the streets in the largest cities; there are also 
taxi stands, but the fares are higher.  Cars with bilingual drivers can 
be hired at most business hotels; they will negotiate fees on a daily 
basis if desired.  

While many business people in the large cities speak some English, it 
may be difficult for them to conduct detailed technical discussions.  
First-time visitors may want to hire an interpreter.  It is considered 
courteous if the U.S. visitors speaks even a few words of Spanish.

World class business hotels are available in the major cities of Mexico; 
rates will approximate those of major U.S. cities.  Such hotels offer a 
full range of business center services to the traveller.  For the longer 
stay, some furnished apartment facilities with maid service are 
available in the Mexico City area.  House and apartment rentals in 
Mexico are generally more costly than they would be for comparable 
quarters in the United States.

Visitors should take standard international dietary precautions in 
Mexico.  It is best to drink bottled beverages without ice.  Raw salads 
should not be consumed, all fruits should be peeled, and meat should be 
ordered well done.  Fish should be cooked.

Travellers to Mexico City should remember the high altitude and be 
prepared to take it slow, getting sufficient rest, until they have 
adjusted to the difference.

          Business Travel Holidays

January 1, 1995          Sunday*          New year's day

January 16               Monday           Martin Luther King's (US)

February 5              Sunday            Anniversary of Constitution 

February 20             Monday           Presidents' Day (US)

March 21                Tuesday          Benito Juarez' s Birthday

April 13                Thursday         Good Thursday

April 14                Friday           Good Friday

May 1                   Monday           Mexican Labor Day

May 5                   Friday           Anniversary of the 
                                         Battle of Puebla

May 29                  Monday           Memoral Day (US)

July 4                  Tuesday          Independence Day

September 4             Monday           Labor Day

September 16            Saturday         Mexican Independence Day

October 9               Monday           Columbus Day (US)

October 12              Thursday         Dia de la Raza

November 2              Thursday         All Soul's Day

November 11             Saturday*        Veterans Day (US)

November 20             Sunday           Anniversary of the
                                         Mexican Revolution

November 23             Thursday         Thanksgiving Day (US)

December 25             Monday*          Christmas Day

* According to U.S. law, American holidays falling on Saturday will be 
observed on Friday and those falling on Sunday will be observed on 




Population (year-end, millions): 92.2

Population Growth (pct. change p.a.): 1.8

Religions: nominally Roman Catholic 89%, Protestant 6%

Government System: Federal republic under centralized government

Languages: Spanish, various Mayan dialects

Work Week: 48 hours, one paid day of rest


                                    1994          1995 (p)

Gross Domestic Product             377.1           269
(USD Billions)GDP Growth Rate
(real %)                             3.5          -2.0
GDP Per Capita (current USD)     4,209.0       3,009.0
Government Spending (% GDP)         26.6           N/A
Inflation (Dec-Dec, %)               7.1          49.0
Unemployment (a)                    11.6          18.5  
Foreign Exchange Reserves            6.1           9.3
  (USD Billions, end period) 
Average Exchange Rate                3.3           N/A
  (USD 1.00)          
Debt Service Ratio                 26.94           N/A

(p) - projected figures
(*) - GOM projections March 1995
(a) - Percent of the economically active population openly unemployed or 
receiving less than one minimum salary during the last quarter of the 

Source: Bank of Mexico Annual Report, The Mexican Economy, 1995

At the time of this report, there were no government projections 
available for 1996.  Some of the information was available from private 
organizations, but was not included in this report.

                                         1994           1995

Total Country Exports (FOB)          60.9 [ 1]          75.0 [2]
(from Mexico)

Total Country Imports (FOB)          79.3 [ 1]          69.6 [2]
(to Mexico)

U.S. Exports (FAS)                    50.8 [3]          44.5 [4] 

U.S. Imports (CUS)                    49.5 [3]          61.0 [4]

(FOB) - Mexican data are calculated free on board for both imports and 
(FAS) - U.S. data are calculated free alongside for exports.
(CUS) - U.S. data are calculated customs basis for imports.

Sources: [ 1] The Mexican Economy 1995, Bank of Mexico; [2] GOM 
projection March 1995
[3] U.S. Department of Commerce; [4] Estimated projections. 

At the time of this report, there were no available government 
projections for 1996.  Some of the information was available from the 
private sector, but was not included in this report.



          Table 2 
           Cumulative Foreign Direct Investment in Mexico
          (through February  1995)

                            Millions USD     Percent

United States               31,970.7          59.1
United Kingdom               3,722.8           6.9
Germany                      2,690.3           5.0
Japan                        2,403.3           4.4
Switzerland                  1,881.2           3.5
France                       1,680.9           3.1
Holland                      1,611.1           3.0
Canada                       1,338.0           2.5
Spain                        1,001.2           1.8
Sweden                         386.1           0.7
Italy                           81.6           0.2
Others                       5,355.3           9.9
Total                       54,122.5             100.0    


1) Mexican Government Agencies
          Secretaria de Comercio y Fomento Industrial (SECOFI)
          (Secretariat of Commerce and Industrial Development)
          Lic. Decio de Maria Serrano
          Under Secretary of Foreign Trade and Investment
          Alfonso Reyes No. 30, Piso 12
          Colonia Hipodromo-Condesa
          06140 Mexico, D.F.
          Tel: (011-52-5) 729-91-00 Ext. 3000
          Fax: (011-52-5) 729-93-43

          Secretaria de Comercio y Fomento Industrial (SECOFI)
          (Secretariat of Commerce and Industrial 
          Lic. Ma. Eugenia Bracho Gonzalez
          Director General of Standards
          Puente de Tecamachalco No. 6
          Lomas de Tecamachalco
          53950 Naucalpan, Edo. de Mexico
          Tel: (011-52-5) 729-93-00/9475/76/78
          Fax: (011-52-5) 729-94-84

          Instituto Mexicano de la Propiedad Industrial 
          (Mexican Institute of Industrial Property and Technological 
          Lic. Jorge Amigo Castaneda
          Director General
          Periferico Sur No. 3106
          Colonia Jardines del Pedregal
          10400 Mexico, D.F.
          Tel: (011-52-5) 624-04-00 to 02
          Fax: (011-52-5) 624-0406
          Secretaria de Educacion Publica (SEP)
          (Secretariat of Public Education)
          Lic. Carmen Quintanilla Madero
          Director General of Copyrights
          Mariano Escobedo No. 438, 7o Piso
          Colonia Nueva Anzures
          11590 Mexico, D.F.
          Tel: (011-52-5) 250-03-80
          Fax: (011-52-5) 250-75-73

          Secretaria de Comercio y Fomento Industrial  (SECOFI)
          (Secretariat of Commerce and Industrial 
          Ing. Moises Kolteniuk
          Mines General Coordinator
          Morena No. 811, piso 2
          Colonia Narvarte
          03020 Mexico, D.F.
          Tel: (011-52-5) 639-35-75/45-75
          Fax: (011-52-5) 639-96-90/5575

          Secretaria de Energia (SE)
          (Secretariat of Energy)
          Ing. Jorge Eduardo Navarrete Lopez
          Under Secretary of Policy and Energy Development
          Avenida Insurgentes No. 552, Piso 7
          Colonia Roma Sur
          06769 Mexico, D.F.
          Tel: (011-52-5) 564-9629/9756
          Fax: (011-52-5) 574-10-10
          Secretaria de Medio Ambiente, Recursos Naturales y Pesca
          Dra. Julia Carabias Lillo 
          (Secretariat of the Environment, Natural Resources, and 
          Lateral Anillo Periferico Sur 4209 - Piso 6
          Fracc. Jardines de la Montana
          14210 Mexico,  D.F.
          Tel: 628-06-01/06-05
          Fax: 628-0643

          Secretaria de Comunicaciones y Transporte 
          (Secretariat of Communications and Transport)
          Dr. Aaron Dychter Poltolarek     
          Under Secretary of Transportation
          Eje Central - Ala Oriente Piso 1
          Colonia Narvarte
          03028 Mexico, D.F.
          Tel: (011-52-5) 519-4468/530-7390
          Fax: (011-52-5) 519-48-71

2) Mexican Trade Associations/Chambers of Commerce

          American Chamber of Commerce of Mexico, A.C.
          Mr. John Bruton
          Vice President
          Lucerna No. 78
          Colonia Juarez
          06600 Mexico, D.F.
          Tel: (011-52-5) 724-38-00
          Fax: (011-52-5) 703-29-11

          United States Hispanic Chamber of Commerce
          Lic. Lorenzo C. Lopez
          Director of International Affairs
          Balderas No. 144, Piso 3
          Colonia Centro
          06079 Mexico, D.F.
          Tel: (011-52-5) 709-22-81
          Fax: (011-52-5) 709-11-77

          Camara Nacional de Comercio de la Ciudad de 
          Mexico  - (CANACO)
          (National Chamber of Commerce of Mexico City)
          Lic. Roman Vidal Tamayo
          Director of Foreign Trade
          Paseo de la Reforma No. 42 - Piso 3
          Colonia Centro
          06048 Mexico, D.F.
          Tel: (011-52-5) 592-0375
          Fax: (011-52-5) 705-53-10

          Confederacion de Camaras Nacionales de 
          Comercio -  (CONCANACO)
          (Confederation of National Chambers of 
          Lic. Jose de Jesus Castellanos Lopez
          Director General
          Balderas No. 144, Piso 3
          Colonia Centro
          06079 Mexico, D.F.
          Tel: (011-52-5) 709-15-59/709-1919
          Fax: (011-52-5) 709-11-52

          Camara Nacional de la Industria de la 
          (National Manufacturing Industry Chamber)
          Lic. Luis Miguel Pando Leyva
          Director General
          Avenida San Antonio No. 256
          Colonia Ampliacion Napoles
          03849 Mexico, D.F.
          Tel: (011-52-5) 563-61-12
          Fax: (011-52-5) 598-58-88

          Confederacion de Camaras Industriales de 
                 los Estados Unidos Mexicanos (CONCAMIN)
          (Confederation of Industrial Chambers of 
          Lic. Alvaro Torre Prieto
          Director General
          Manuel Ma. Contreras No. 133, Piso 2
          Colonia Cuauhtemoc
          06500 Mexico, D.F.
          Tel: (011-52-5) 566-78-22 Ext. 104/105
          Fax: (011-52-5) 535-68-71

          Asociacion Nacional de Importadores y 
                 Exportadores de la Republica Mexicana (ANIERM)
          Association of Importers and Exporters of 
          Ing. Juan Autrique Gomez
          Monterrey No. 130
          Colonia Roma 06700
          Tel: (011-52-5) 584-95-22
          Fax: (011-52-5) 584-53-17

          It should be noted that there are hundreds of specialized and 
regional associations and chambers in Mexico, which could not be 
included here. 
3) Market Research Firms in Mexico

          A.C. Nielsen Company
          Sr. Roberto O. Pedraza P.
          Commercial Manager
          Blvd. Manuel Avila Camacho No. 191, pisos 7 y 8
          Colonia Chapultepec Morales
          11570 Mexico, D.F.
          Tel: (011-52-5) 395-03-99
          Fax: (011-52-5) 580-1957

          Acus Consultores, S.C.
          Ing. Alberto Calvo Mercado
          General Director
          Parque Lira No. 79, Despacho 408
          Col. San Miguel Chapultepec
          11850 Mexico, D.F.
          Tel.: (525) 272-40-32
          Fax: (525) 272-4969

          Arthur D. Little de Mexico, S.A.
          Lic. Andrew Wigard
          Sinaloa No. 149, Piso 10
          Colonia Roma Norte
          06700 Mexico, D.F.
          Tel: (011-52-5) 208-75-64
          Fax: (011-52-5) 207-75-92

          Bimsa, S.A. de C.V.
          Lic. Cesar Ortega de la Roquette
          Vice President and Director General
          Ingenieros Militares No. 91
          Colonia Lomas de Sotelo
          11200 Mexico, D.F.
          Tel: (011-52-5) 395-34-88           
                Fax: (011-52-5) 395-86-48

          Dunn y Asociados, S.A. de C.V.
          General Consultants
          Mr. James D. Dunn
          Leibnitz No. 1, 5th. Floor
          Col. Anzures
          11590 Mexico, D.F.
          Tel: (011-52-5) 208-8298
          Fax: (011-52-5) 525-0755
          Dun & Bradstreet, S.A. de C.V.
          Mr. Carlos T. Blanco
          General Director
          Durango No. 263, piso 5
          Col. Roma
          06700 Mexico, D.F.
          Tel: (011-52-5) 229-6900, 511-3766
          Fax: (011-52-5) 514-96-40, 511-00-65

          Dr. Alberto Sanchez Osio
          Deputy Director
          Avenida San Fernando No. 37
          Colonia Toriello Guerra-Tlalpan
          14050 Mexico, D.F.
          Tel: (011-52-5) 606-00-11 Exts. 1021/1025
          Fax: (011-52-5) 606-13-07

          Newell, Arano y Asociados, S.A. de C.V.
          Sr. Polux Arano Diaz de la Serna
          Director General
          Avenida Cuernavaca No. 43
          Colonia Condesa
          06140 Mexico, D.F.
          Tel: (011-52-5) 211-82-95
          Fax: (011-52-5) 211-82-62

          Norris & Elliott, S.A. de C.V.
          Ing. Agustin Pesquiera Rebeil
          Leibnitz No. 11, 4o Piso
          Colonia Anzures
          11590 Mexico, D.F.
          Tel: (011-52-5) 254-64-02
          Fax: (011-52-5) 254-47-67

          Technomic de Mexico, S.A.
          Sr. Antonio Iniguez
          General Manager
          Rio Guadalquivir No. 50, Piso 3
          Colonia Cuauhtemoc
          06500 Mexico, D.F.
          Tel: (011-52-5) 208-13-25
          Fax: (011-52-5) 207-47-28

          Wilsa, S.A.
          Sr. Wilbert Sierra
          Director General
          Cozumel No. 60
          Colonia Condesa
          06140 Mexico, D.F.
          Tel: (011-52-5) 286-15-31
          Fax: (011-52-5) 286-94-57
          Sr. Guillermo Suarez y Farias
          Independent Market Research Contractor
          Salvador Alvarado No. 39
          Colonia Escandon
          11800 Mexico, D.F.
          Tel/Fax: (011-52-5) 516-78-92

          Lic. Caroline Verut
          Independent Market Research Contractor
          Avenida Parque Mexico
          Colonia Hipodromo
          06100 Mexico, D.F.
          Tel: (011-52-5) 584-22-79

          Lic. Mario Yandiola/Lic. Omar Gonzalez
          Independent Market Research Contractors
          Prolongacion Division del Norte
          Andador 24, Casa 33
          Colonia Villa Coapa
          14390 Mexico, D.F.
          Tel: (011-52-5) 594-72-59
          Fax: (011-52-5) 603-1443

4) Mexican Commercial Banks

          Banco Nacional de Mexico, S.A. (BANAMEX)
          Sr. James G. Strachen T.
          Import Financing Division
          Palma No. 43, 3er Piso
          Colonia Centro
          06089 Mexico, D.F.
          Tel: (011-52-5) 225-65-08
          Fax: (011-52-5) 225-53-89

          Lic. Dorotea Ortiz Markevics
          Deputy Director
          Preferential Financing
          Avenida Universidad No. 1200
          Colonia Xoco
          03339 Mexico, D.F.
          Tel: (011-52-5) 621-38-60/621-11-75
          Fax: (011-52-5) 621-47-58

          Banca Serfin
          Lic. Jose Manuel Ezeta Gonzalez
          Manager of U.S. and Canada
          Financial Institutions and International 
          Avenida Ricardo Margain 380, 1er Piso
          Colonia Valle del Campestre
          Garza Garcia, NL
          Tel: (011-52-83) 18-40-10
          Fax: (011-52-83) 18-40-07

          Banco Internacional
          Lic. Mauricio Alaimo
          Under Director for
          Bilateral Financing
          International Area
          Paseo de la Reforma No. 156, Piso 16
          Colonia Juarez
          06600 Mexico, D.F.
          Tel: (011-52-5) 721-27-33
          Fax: (011-52-5) 721-23-93

          Banco del Atlantico
          Lic. Gilberto Franquebalme
          Deputy Director of International Relations
          Avenida Hidalgo No. 128
          Colonia Coyoacan
          04030 Mexico, D.F.
          Tel: (011-52-5) 626-10-55
          Fax: (011-52-5) 626-16-22

          Banco Quadrum, S. A.
          Lic.  Javier Flores Sierra
          Director General
          Periferico Sur No. 4249
          Col. Jardines en la Montana
          14210 Mexico, D.F.
          Tel:  (011-52-5) 723-8900/9000
          Fax:  (011-52-5) 645-3964

          Banco Capital, S.A. 
          Sr. Jose Antonio Alonso
          Director General
          Blvd. M. Avila Camacho No. 184-Piso 18 
          Col. Reforma Social
          11650 Mexico, D. F.
          Tel:  (011-52-5) 723-0404
          Fax:  (011-52-5) 723-0595/0596
          Banco del Sureste, S.A.
          C.P. Rafael Carabias Principe
          General Director
          Blas Pascal No. 205
          Col. Los Morales Polanco
          53950 Naucalpan, Edo. Mex.
          Tel:  (011-525) 727-9500   
          Fax:  (011-525) 294-6111

          Banco Inbursa, S.A. 
          Lic. Fernando Gerardo Chico Pardo
          Director General
          Av. Paseo de las Palmas No. 736 P.B.
          Col. Lomas de Chapultepec
          11000 Mexico, D.F.
          Tel:  (011-52-5) 202-1122/4066, 625-4900
          Fax:  (011-52-5) 520-5326, 540-7492

          Banco Industrial, S.A.
          Lic. Ernesto Amezcua Gallardo
          Director General
          Prol. Av. Americas No. 1619-6o. Piso
          44620 Guadalajara, Jal. 
          Tel:  (011-52-3) 678-1843/1847
          Fax:  (011-52-3) 678-1858

          Banco Promotor del Norte, S.A. 
          Lic. Benjamin J. Lopez Cisneros
          Director General 
          Berna No. 6 Esq. P. de la Reforma 
          Col. Juarez
          06600 Mexico, D. F.
          Tel:  (011-52-5)627-9211  Ext. 1129-1130 
          Fax:  (011-52-5)627-9299
          Banco Interacciones, S.A.
          C.P. Arturo Martinez de la Mora
          General Director
          Av. Paseo de la Reforma No. 383 Piso 12
          Col. Cuauhtemoc
          06500 Mexico, D.F.
          Tel:  (011-52-5) 326-8600
          Fax:  (011-52-5) 207-5440

          It should be noted that this is just a partial listing of 
Mexican commercial banks.  There are many more national and regional 
banks.  See also the listing in the financial section of this Country 
Commercial Guide.


5) Representative Offices of U.S. Banks in Mexico

          American Express Bank, L.T.D.
          Moliere 13, Piso 5
          Col. Polanco Chapultepec
          Mexico, D.F.  11560
          Tel: 282-0988 288-1666
          Fax: 282-2355
          Felipe Jesus Leon Machorro

          Bank One, Milwaukee, National Association
          Rio Sena 54, Planta Baja
          Col. Cuauhtemoc
          Mexico D.F.  06500
          Tel: 535-6372, 546-7178, 566-2997
          Fax: 535-6372
          Carlos Damaso Galguera

          California Commerce Bank
          Andres Bello 45, Pisos 8, 17, 27
          Col. Polanco Chapultepec
          Mexico, D.F.  11560
          Tel: 725-8760, 725-8395
          Fax: 725-8676
          Jaime Chavez Llerenas

          Chemical Bank
          Campos Eliseos 400, Piso 15
          Col. Chapultepec Polanco
          Mexico, D.F.  11000
          Tel: 280-0086, 280-8817, 280-8062
          Fax: 280-8691, 280-0842
          John S. Donnelly

          Grossmont Bank
          Centro Bancomer
          Ave. Universidad 1200
          Col. Xoco
          Mexico, D.F.  03339
          Tel: 621-3597, 621-3598
          Fax: 658-4740
          Miguel Enrique Garibay

          Morgan Guaranty Trust Company of New York
          Blvd. Manuel A. Camacho 1, Despacho 802
          Col. Polanco Chapultepec
          Mexico, D.F.  11560
          Tel: 540-6765 to 69
          Fax: 237-1932
          Eduardo Cepeda

          NationsBank of Texas, National Association
          Reforma 509, Piso 3
          Col. Cuauhtemoc
          Mexico, D.F.  06500
          Tel: 553-3355
          Fax: 553-3366
          Ramon Cesar Perez

          Republic National Bank of New York
          Presidente Masaryk 101-1401
          Col. Chapultepec Morales
          Mexico, D.F.  11570
          Tel: 254-6059
          Fax: 203-5941
          Humberto Treves

          Texas Commerce Bank
          Ave. Campos Eliseos #400, Piso 15
          Mexico, D.F.  11000
          Tel: 280-4211
          Fax: 280-8691
          John S. Donnelly

          The Chase Manhattan Bank, N.A.
          Hamburgo 213, Piso 7
          Col. Juarez
          Mexico, D.F.  06600
          Tel:208-6066, 208-5666, 208-6266
          Fax:208-5604, 208-6566, 208-3000
          Manuel Celito Pena-Morros

          The First National Bank of Boston
          Ruben Dario #281, Torre Chapultepec, Piso 12
          Col. Bosques de Chapultepec
          Mexico, D.F.  11580
          Tel: 282-2695
          Fax: 282-0019
          Stephen Thomas Griesemer

6) U.S. Embassy Trade Personnel

          U.S. Embassy, Mexico City
          Mr. Kevin C. Brennan
          Mr. John Harris
          Commercial Counselor
          Paseo de la Reforma No. 305
          Colonia Cuauhtemoc
          06500 Mexico, D.F.
          Tel: (011-52-5) 211-00-42, Ext. 3730
          Fax: (011-52-5) 207-89-38
          Mail:  P.O. Box No. 3087
          Laredo, TX 78044-3087

          U.S. Trade Center, Mexico City
          Mr. Robert W. Miller
          Liverpool No. 31
          Colonia Juarez
          06600 Mexico, D.F.
          Tel: (011-52-5) 591-01-55
          Fax: (011-52-5) 566-11-15
          Mail:  P.O. Box No. 3087
          Laredo, TX 78044-3087

          U.S. Agricultural Trade Office
          Mr. Marvin Lehrer
          Edificio Virreyes, PH-2
          Monte Pelvoux No. 220
          Lomas de Chapultepec
          11000 Mexico, D.F.
          Tel: (011-52-5) 202-04-34
          Fax: (011-52-5) 202-05-28
          Mail: P.O. Box No. 3087
          Laredo, TX 78044-3087
          U.S. Consulate General, Monterrey
          Mr. Robert Jones
          Commercial Officer
          Avenida Constitucion No. 411 Pte.
          64000 Monterrey, NL
          Tel: (011-52-83) 45-21-20
          Fax: (011-52-83) 42-51-72
          Mail: P.O. Box No. 3098
                 Laredo, TX 78044-3098

          U.S. Consulate, Guadalajara
          Mr. Bryan Smith
          Commercial Officer
          Progreso No. 175
          44100 Guadalara, Jalisco
          Tel: (011-52-3) 625-29-98
          Fax: (011-52-3) 625-35-76
          Mail: P.O. Box No. 3088
          Laredo, TX 78044-3088

7) Washington-based U.S. Government Country Contacts
          U.S. Department of Commerce
          International Trade Administration
          Office of NAFTA
          Ms. Regina Vargo
          14th Street & Constitution Avenue, N.W.
          Room No. 3022
          Washington, D.C. 20230
          Tel: (202) 482-0300
          Fax: (202) 482-5865
          Flash Fax: (202) 482-4464
          (Flash Fax is a system through which firms can receive a wide 
variety of documents on doing business in Mexico automatically via fax)

          Export-Import Bank of the United States
          Ms. Marion M. Hinchman
          Loan Officer for Mexico
          811 Vermont Avenue, N.W.
          Washington, D.C. 20571
          Tel: (202) 566-8234
          Fax: (202) 

          U.S. Trade and Development Agency
          Mr. ALbert W. Angulo
          Program Director
          Latin American and the Caribbean
          1621 N. Kent Street, Rm. 309
          Rosslyn, VA 22209
          Tel: (703) 875-4357
          Fax: (703) 875-4009

          U.S. Department of State
          Bureau of Inter-American Affairs
          Office of Mexican Affairs
          Mr. Dennis Heys
          21st and C Streets, N.W., Rm. 4258
          Washington, D.C. 20520
          Tel: (202) 647-9894
          Fax: (202) 647-5752

          Office of the United States Trade 
          Mr. John Melle
          Director of Mexican Affairs
          600 17th Street, N.W.
          Washington, D.C.
          Tel: (202) 395-3412
          Fax: (202) 395-3911

8) U.S.-based Partners Relevant for Mexico

          United States Chamber of Commerce
          Mr. Andrew Howell
          Assistant Director, Latin American Affairs
          1615 H Street, N.W.
          Washington, D.C. 20062-2000
          Tel: (202) 463-5490
          Fax: (202) 463-3126          

          United States-Mexico Chamber of Commerce
          Mr. Martin Rojas
          Communications Director
          1726 M. Street N.W. Suite 704
          Washington, D.C. 20036
          Tel: (202) 296-5198
          Fax: (202) 728-0768

          United States Hispanic Chamber of Commerce
          Mr. Jose F. Nino
          1030 15th Street, N.W., Suite 206
          Washington, D.C. 20005
          Tel: (202) 842-1212
          Fax: (202) 842-3221

9) U.S. State Trade Offices in Mexico

          Jorge Mejia
          Edificio Torre Caballito
          Av. Paseo de la Reforma No. 10-7 Piso
          Col. Centro
          06030 Mexico, D.F.,
          Tel:  (011-52-5) 566-9850/9847
          Fax:  (011-52-5) 566-9642

          Mr. John Leonard
          General Director
          Durango 341-4
          Col. Roma
          06700 Mexico, D.F.
          Tel:  (011-52-5) 211-6308
          Fax:  (011-52-5) 211-5776

          Mr. Reinhold C. Schrader
          Av. Paseo de la Reforma No. 164
          Col. Juarez
          06600 Mexico, D.F.
          Tel: (011-52-5) 747-8260/9092/0199/0269
          (temporary telephones)

          Patrick J. Fenton
          Netzahualcoyotl No. 2134
          Ciudad del Sol
          45050 Guadalajara, Jalisco
          Tel/Fax:  (011-52-3) 122-2963

          Sr. Noe de La Flor
          Havre No. 67-l07
          Col. Juarez
          06600 Mexico, D.F.
          Tel:  (011-52-5) 525-6807, 514-l769
          Fax:  (011-52-5) 514-8449

          Guadalupe M. Martinez
          Rio Marne No. 19 Desp. 203
          Col. Cuauhtemoc
          06500 Mexico, D.F.
          Tel:  (011-52-5) 546-1518/3438
          Fax:  Ask for tone

          Lic. Steven Rosenberg
          Planeacion Avanzada, S.A. de C.V.
          Tabasco No. 226-201
          Col. Roma
          06700 Mexico, D.F.
          Tel:  (011-52-5) 207-8011/9836
          Fax:  (011-52-5) 208-2179

          Sr. Armando M. Orellana Villers
          General Director
          Av. Ninos Heroes No. 2905-6
          Col. Jardines del Bosque
          44520 Guadalajara, Jal.
          Tel:  (011-52-3) 121-2158
          Fax:  (011-52-3) 121-1778

          Sr. Raymundo Flores
          Phillip Hendrix, Intl.
          Mktg. & Agricultural
          Av. Paseo de la Reforma No. 164-1
          Col. Juarez
          06600 Mexico, D.F.
          Tel:  (011-52-5) 747-8l90 to 8l94
          Ms. Alma Lilia Carreon
          General Director
          Av. Revolucion No. 1909, piso 1
          Col. San Angel
          01000 Mexico, D.F.
          Tel:  (011-52-5) 6l6-2486/2984
          Fax:  (011-52-5) 550-1014

          Lic. Antoniette Allegretti
          Trade Management Services, Inc.
          Av. Insurgentes Sur No. 813-1107
          Col. Napoles
          03810 Mexico, D.F.
          Tel:  (011-52-5) 687-3934
          Fax:  (011-52-5) 523-5618

          Sra. Nancy A. Paez
          Paseo de la Reforma No. 107-piso 12
          Col. Revolucion
          06030 Mexico, D.F.
          Tel:  (011-52-5) 703-3595/1879
          Fax:  (011-52-5) 703-2838

          Sr. Manuel Otalora
          Recreo No. 109
          Col. Del Valle
          03100 Mexico, D.F.
          Tel:  (011-52-5) 524-8650/9500
          Fax:  (011-52-5) 524-9676

          William G. Allen
          Mexico, S.A. de C.V.
          Calz. San Juan de Aragon No. 5l6
          07070 Mexico, D.F.
          Tel:  (011-52-5) 626-0400
          Fax:  (011-52-5) 728-2299

          Sr. Oscar Gonzalez
          Director General
          Mexicaltzingo No. 2189
          44150 Guadalajara, Jal.
          Tel:  (011-52-3) 616-6248/6251
          Fax:  (011-52-3) 616-6248

          New Mexico
          Mr. Rahul Kapuz
          Florencia No. 57-3er. Piso
          Col. Juarez
          06600 Mexico, D.F.
          Tel:  (011-52-5) 207-7619, 208-1515
          Fax:  (011-52-5) 207-75l2, 208-5311

          North Carolina
          Sra. Kennedy C. Lonam
          Bosques de Duraznos No. 69, Torre A Piso 11
          Col. Bosques de las Lomas
          11700 Mexico, D.F.
          Tel:  (011-52-5) 596-2918/8972
          Fax:  (011-52-5) 596-2972

          Ms. Antoinette Allegretti
          Insurgentes Sur No. 813-Suite 1107
          Col. Napoles
          03810 Mexico, D.F.
          Tel:  (011-52-5) 687-3934
          Tel/Fax: (011-52-5) 523-5618

          C.P. Joaquin Frias Maurer
          General Director
          Procorfi Consultores, S.C.
          Jose Ma. Velasco No. 67
          Col. San Jose Insurgentes
          03900 Mexico, D.F.
          Tel: (011-52-5) 660-1104/0979/0665
          Fax: (011-52-5) 593-5982       

          Puerto Rico
          Lic. Roberto Pedroza Diaz  
          Andres Bello No. 10-19o. Piso
          Edificio Forum
          Col. Polanco
          11560 Mexico, D.F.
          Tel/Fax: (11-52-5) 282-9187   

          Rhode Island
          Mr. Michael G. Taylor
          Arrow de Mexico
          Maiz No. 58
          Col. Granjas Esmeralda
          09810 Mexico, D.F.
          Tel:  (011-52-5) 582-1400
          Fax:  (011-52-5) 582-1191                

          Lic. Eduardo Sosa (temporal)
          Director - Vacant
          Av. Paseo de la Reforma No. 76-15o. Piso
          Col. Juarez
          06600 Mexico, D.F.
          Tel:  (011-52-5) 546-8173/8876/5455, 566-9635 
          Fax:  (011-52-5) 546-4830

          Ms. Guadalupe Escalante
          Amberes No. 33-904
          Col. Juarez
          06600 Mexico, D.F.
          Tel:  (011-52-5) 525-5606
          Tel/Fax:  (011-52-5) 525-5786

          Ms. Noe de la Flor
          Havre No. 67-107
          Col. Juarez
          06600 Mexico, D.F.
          Tel: (011-52-5) 525-6807/514-8449
           Fax: (011-52-5) 514-8449
          Mr. Vince Lencioni
          Rio Nilo No. 90-604
          Col. Cuauhtemoc
          06500 Mexico, D.F.
          Tel:  (011-52-5) 533-6217/4745/525-0573
          Fax:  (011-52-5) 207-6879  


Topic                                      Month Due

Textiles for Apparel                       October
Non-electrical Machinery and Related
 Tools and Parts                           October
Cellular Telecommunications Equipment
 and Services                              October
Home Windows, Doors and Supplies
 (to include stripping caulking etc.)      November
Fasteners (screws, bolts, nails, nuts,
 etc.)                                     November
Educational Equipment and Supplies         December
Drugs and Pharmaceutical                   December
Processed Foods                            December
Environmental Engineering Services         December
Textiles and Yarns for Home Decoration
 (includes furniture, wallcoverings,
 drapes, etc.)                             February
Laboratory Analytical and Scientific
 Apparatus, Supplies, and Services         February
Thermionic, Cold Cathode, and 
 Photovoltaic Valves                       February
Management Consulting                      February
Railroad Equipment                         March
Computer Peripherals                       March
Taps, Cocks, and Valves                    March
Autoparts                                  March
Construction Machinery, Parts, and
 Apparatus                                 May
Industrial Process Control Equipment       May
Plastics Production Machinery              May
Wood Panel Products                        May
Architecture Construction and 
 Engineering Services                      May
Oil and Gas Production Equipment           May
Lubricants, Automotive and Industrial      May
 Printing and Graphic Arts                 June
Construction Machinery, Parts, and
 Apparatus                                 June
Aircraft Engines and Parts (includes
 general aviation)                         June
Pumps, Air Compressors, and Fans          June
Children's Apparel                         July
Parts for Office Machinery and Automatic
 Data Processing Equipment                 July
Air Conditioning, Refrigeration,
 and Heating Equipment                     July
Home Furniture                             July
Worker Health Safety Equipment and
 Supplies                                  August
Automotive Repair, Maintenance, and
 Emissions Control/Testing Equip.          August
Meat and Fish Processing Equipment         August
 Industrial and Commercial Safety and 
Security Equipment                         August
Health Care Products                       September
Electrical Apparatus for Switching or
 Protecting Circuits                       September
Chemical Production Machinery              September
Sporting Goods                             September


August 15-17, 1995          Plasticos '95

August 29-31                Representaciones Guadalajara '95

September 19-21             Medilab '95

September/November          New Products USA
          Multi State Catalog Exhibition

October 17-19               California '95

October 25-27               Petro y Chem '95

November 14-16              Ecologia '95

December 5-7                RepCom '95

January 24-26 , 1996        MexCom '96

February 13-16              Expo Comm Mexico '96

February 20-22              Maquinas Herramientas '96  (Machine Tools)

March 12-14                 Beauty and Health '96

March 13-15                 Expo Manufactura '96

March 26-28                 Representaciones Monterrey '96

April-August                Medical and Health Care USA
          Multi State Catalog Exhibition

May 14-16                   Apparel '96

June 11-13                  Electronica '96

July 09-11                  Expo Midwest '96

August 07-09                Show Mexico '96

August 27-29                Representaciones Guadalajara '96

September 17-19             Expo California '96

All of the events listed above are supported by the U.S. Government.
Trade event schedules are subject to change.  For the latest 
information, consult the export promotion calendar on the NTDB. You may 
also contact Charles Crowley or Raquel Polo at the US Trade Center. Ph: 
(011)(525) 591-0155.
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