In This Issue:
Spotlight:
This month's spotlight is the trip the IBA took with Governors Bill Richardson and Jose Reyes Baeza of N.M. and Chihuahua to Washington D.C..


Partners:

Executive Director's Message:

Incredibly, this is our final newsletter of 2006, which has been the best year yet for the IBA. The number of our registered clients continues to grow, as well as our outreach activities. We continue to add resources and partners to our program, and hope to have an even more successful year in 2007.

We end the year with a “bang,” having returned from accompanying New Mexico Governor Bill Richardson and Chihuahua Governor Jose Reyes Baeza on a binational trade mission to Washington, D.C. We are grateful for having been asked by the New Mexico Economic Development Department to be part of this important mission. More details on this trip can be found below.

As we end the year, I would like to share the following quote from Albert Einstein that expresses how blessed our team feels during the holiday season to be able to serve our constituents:

“Every day I remind myself that my inner and outer life are based on the labors of other men, living and dead, and that I must exert myself in order to give in the same measure as I have received and am still receiving.”

From all of the IBA team, we wish each of you and your families a warm seasonings greetings.

Sincerely,

Jerry Pacheco

Announcements:
The IBA Accompanies Governor Bill Richardson of New Mexico and Governor Jose Reyes Baeza of Chihuahua to Washington, D.C.
On December 5 to 7, 2006, New Mexico Governor Bill Richardson and Chihuahua Governor Jose Reyes Baeza led a binational delegation of state officials to Washington, D.C. to attend a series of meetings with federal officials. The topics discussed included border security, international trade, tourism, and border crossings, among other key issues. Governors Richardson and Baeza were accompanied by a number of cabinet secretaries and division leaders from New Mexico and Chihuahua.

The meetings were arranged by the New Mexico-Chihuahua Commission, which consists of six different worktables that address issues of common interest between both states, such as economic development and trade, border crossings and infrastructure, tourism, public safety, health and water. Governor Richardson has worked closely with his Mexican counterparts in border states and the Mexican federal government to create one of the most innovative and dynamic border regions in the world.

During the visit, the binational delegation met with the Department of Commerce, Department of State, Attorney General’s Office, Department of Homeland Security (Customs and Border Protection), Mexican Ambassador to the U.S. Carlos de Icaza, and Senator Jeff Bingaman (Democrat-New Mexico).

The two governors held a joint news conference at the Hart Senate Office Building following their meetings to discuss the thriving relationship between the two states and the outcome of the meetings. During the press conference, the governors expressed the need for the following:

  • A new border crossing at Anapra, New Mexico
  • Extension of hours at the Santa Teresa border crossing
  • Alternatives to the strict provisions of the Western Hemisphere Travel Initiative that require all U.S. citizens to use a passport for travel between Mexico and the United States. The governors are specifically interested in the concept of a “travel card” that would be less expensive and restrictive. They are also concerned about any requirement that could hinder or reduce trade, tourism, and exchange between Mexico and the U.S.

The governors also expressed their unified opposition to the U.S. erecting a fence or a wall along the U.S.-Mexico border.

Perhaps, the most important outcome of the trip was the announcement after a meeting with officials of Customs and Border Protection that the commercial hours at the Santa Teresa Port of Entry would be extended to 10:00 p.m. from Monday through Friday. New Mexico state and federal officials have worked on this project for months with their Mexican counterparts, and the visit to Washington, D.C. culminated in this objective being fulfilled.

At the invitation of the New Mexico Economic Development Department, Jerry Pacheco and Peter Ibarbo of the International Business Accelerator traveled to Washington, D.C. as part of Governor Bill Richardson’s delegation. The IBA’s activities were highlighted by both the New Mexico and Chihuahua delegations during the press conference as the achievements of the New Mexico-Chihuahua Commission were reviewed.

According to IBA Executive Director Jerry Pacheco, “It was an honor to accompany such a dynamic group of officials that are working together to improve the border. Both states are fortunate to have governors who have such a strong interest in moving border-related projects forward. The IBA was honored to be asked to travel to Washington, D.C. as part of the binational delegation.”

At the conclusion of the press conference, Governor Reyes Baeza invited Governor Richardson to take a similar binational delegation of the New Mexico-Chihuahua Commission to Mexico City. Governor Richardson accepted this invitation, and both groups agreed to begin planning for this visit.

Click each picture for a larger version.


l to r: Rick Homans, New Mexico Secretary of Economic Development; New Mexico Governor Bill Richardson; Chihuahua Governor Jose Reyes Baeza; Chihuahua Secretary of Industrial Development Alejandro Cano at the Hart Senate Office Building Press Conference


l to r: Juan Massey, Executive Director – Office of Mexican Affairs of the New Mexico Economic Development Department; Roberto Ransom, Office of Mexican Affairs; Bill Hume, Senior Policy Advisor to Governor Bill Richardson; Jerry Pacheco, Executive Director of the IBA, Peter Ibarbo, Senior Trade Specialist-IBA pose with the Popé statue in the Capitol Rotunda


Secretary Rick Homans (left center) addresses officials of the U.S. Department of State


Jerry Pacheco of the IBA (right center) addresses officials of the Department of Homeland Security’s Customs and Border Protection

IBA Monthly Article:
Mexico Receives its New President
by Jerry Pacheco

Oh to have had the seat next to Arnold Schwarzenegger in the wings of the Mexican congress as the scene unfolded below. This movie star turned governor of the most populous state in the U.S. was in the Mexican congress last week to as a guest of president-elect Felipe Calderon, during this his swearing-in ceremony. What unfolded must have seemed to Schwarzenegger like the scenes in his “smash-em up” action movies. Determined to prevent Calderon from taking his oath of office, supporters of losing candidate Andres Manuel Lopez Obrador’s PRD party tried to take over the stage where the inauguration was set to take place. Chairs were flying, punches were thrown, and women were dragged across the floor in the struggle that ensued. Outside of the congressional chambers, thousands more PRD supporters were blocking roads, chanting slogans and trying to be as disruptive as possible.

And in the midst of all of this chaos, Calderon rushed into congress (through a back door entrance), received his oath of office, put on the Mexican presidential sash and rushed out as quickly as he came in. In contrast to the months of controversy over the closeness of the election, the ruling of the Mexican tribunal appointed to determine who won the election, and the decision in September declaring Calderon the winner, the process of Calderon taking office was lightning fast. Because of the unrest in the streets and in the very chamber where he was inaugurated, it had to be.

His running of the gauntlet in order to be sworn in as the Mexican president is but the first of many tests he will face in the months and years to come. In the short-term, Calderon needs to show very quickly that he can stabilize the political situation in Mexico. Unlike his Vicente Fox, his predecessor who came into office with some of the highest hopes and expectations of any president since the period immediately following the Mexican Revolution, Calderon takes office already weakened by the backlash created by his election victory.

As Mexico’s new leader, he will have to address a myriad of issues. Corruption is still a major problem in the public and private sectors of this nation. Drug trafficking has given Mexico a black eye in the international community. Calderon will also need to fix Mexico’s antiquated judicial and educational systems to encourage more human rights and business investment. Perhaps most pressing is how he will deal with the estimated 40 percent of Mexicans who are considered to live at the poverty level. On top of these internal challenges, he will need to carve out a working relationship with the U.S. in order to address binational issues such as curbing illegal immigration and developing improved programs to provide visas for Mexican workers.

Fighting these battles is extremely difficult when the losing candidate not only refuses to recognize his loss, but has made it his personal goal to be as antagonistic and disruptive to the new president as possible. Mexican Senator Carlos Navarrete of the PRD party commented to reporters after the swearing-in ceremony that “In the eyes of Mexico and the entire world, he is the weakest president to take office in decades.”

However, Calderon’s situation is not impossible if he can generate accomplishments and get Mexico on the path to reform. In 1988, Carlos Salinas won the Mexican presidency with barely 50 percent of the vote against his opponent Cuauhtémoc Cardenas. Accusations of vote fixing and stealing the election dogged Salinas as he took office. Supporters of Cardenas took to the streets and blocked Mexico’s ports of entry with the U.S. in protest.

Salinas took office and quickly charted a course to open up Mexico’s economy, which resulted in the North American Free Trade Agreement with the U.S. and Canada. During his first five years in office, the Mexican economy, which had suffered nearly a decade of recession brought on by bad economic policies of the 1970s and early 1980s, thrived. By the end of his fifth year in office, Salinas was one of the most popular presidents in history. Unfortunately, his own bad economic policies doomed Mexico to another recession beginning in December 1994 and forever tagged him as a political pariah in Mexico.

If Salinas could solidify his base by producing results, can Calderon do the same? The answer is maybe. It is certain that Calderon does not want to end up an outcast like Salinas, but this example proves that political wind can change quickly. Unlike Salinas, Calderon’s party does not have a majority in congress. He will have to use every political skill and negotiating talent he has to push forth his agenda.

On the positive side, Calderon inherits an economy that is growing, albeit not at breathtaking levels, but steadily nonetheless. The country’s inflation is low, fiscal policy is relatively tight, oil revenues high and the maquiladora industry is continuing to grow. This beats the situation Salinas faced in 1988, when the Mexican economy was still saddled with billions of dollars of foreign debt and a peso which had lost its value against most world currencies.

And what about Lopez Obrador, who has essentially promised to be a thorn in the side of Calderon for every day of his six-year term? Do he and his supporters really want Mexico to be seen as an unstable place to do business or take vacations due to their disruptive behavior? One of my Mexican friends told me that chaos surrounding Calderon’s swearing-in had created “un dia nacional de verguenza” or a national day of shame. Like my friend, most Mexicans want to move on with their lives and want the controversy over the Mexican elections to end. Most people I have spoken with, whether they supported Calderon or not, accept the fact that he has won the elections. They want him to focus on the major issues at hand so that Mexico can gp forward.

And finally, what about Vicente Fox, who struck a Nixon-like profile as he and his wife boarded the presidential helicopter and flew to retirement at his ranch in Guanajuato, north of Mexico City? To hear people figuratively throwing rocks at him, calling his presidency a failure, and blaming him for everything wrong in Mexico is sad. He leaves Mexico with a stable economy and a Mexican peso that didn’t go into a freefall with the change in leadership.

Perhaps most importantly, it was Fox, with his 2000 presidential election win over the PRI which had ruled Mexico with an iron fist for more than 70 years, who made Mexico a true democracy. The very fact that the PRD opposition is allowed to disrupt his successor’s inauguration, protest in the streets, and have their voices heard is a tribute to this democracy.

Trade Leads:
Investment Opportunity
  • Business Type: Manufacturer / Distributor
  • Country: USA
  • Description: A creator of an innovative flatbread making machine, the “Flatbread Factory,” is seeking investors and/or joint venture partners to help expand its production capabilities. This company currently has distribution contracts pending with 118 distributors from Europe and Asia. The “Flatbread Factory” received a great welcome at an electronics trade show in Hong Kong where over 20,000 attendees viewed the product. Sales orders for about 100,000 units are pending. To view a sample of this exciting new product, please visit www.flatbreadfactory.com.
Gold / Silver Mining Project
  • Business Type: Mining
  • Country: Mexico
  • Description: An owner of a gold/silver mine is interested in identifying investors willing to extract minerals from this mine located in southwest Chihuahua. The mine consists of about 148 acres with a capacity to mill 2,000 tons of minerals per month. Equipment and infrastructure is intact.

    Click each image for a larger version.

Personal Care Products
  • Business Type: Manufacturer
  • Country: USA
  • Description: A producer of a natural line of aromatherapy products is interested in exporting products to spas and retailers in Mexico. The products include, body lotions, herbal sprays, soaps, essential oil blends, perfume oils, bath salts, and other herbal concoctions.

    Click the image for a larger version.

Textile Sewing Process
  • Business Type: Textiles
  • Country: Mexico
  • Description: A manufacturing services company in Cd. Juarez is interested in providing shelter services to companies interested in specialized textile sewing services. This company also provides the following: harness assembly, hand soldering, medical device assembly, textile cutting and sewing (industrial and garment), and rework activities.
Contract Manufacturing
  • Business Type: Metal Forming
  • Country: Mexico
  • Description: A metal stamping and plastic injection molding cooperative out of Cd. Juarez is interested in providing metal forming and thermoform packaging services to 2nd tier or OEM companies involved in the automotive, electronic, and medical industry sector.
Fresh Produce
  • Business Type: Producer
  • Country: Mexico
  • Description: A year-round producer of hydroponic tomatoes in northern Mexico is interested in finding buyers in the U.S. This producer is FDA compliant and has the capacity to supply 15 metric-tons of tomatoes per week packaged in 25-lb boxes in rows of 5X6 per box.
Chile Supplier
  • Business Type: Supplier
  • Country: Mexico
  • Description: A supplier located in Chihuahua City is interested in finding buyers in the U.S. for a variety of dried chile products. The following is a list of available items and prices FOB, El Paso, Texas: dried chile chipotle $1.55 per pound, smoked chile morita at $1.38 per pound, and chile California, $1.38 per pound. Shipments are for full truckload 48-ft. trailers.
For additional information on these and other trade leads please contact the IBA by phone at (505) 589-2200, by email at info@nmiba.com, or on the web at nmiba.com
Upcoming Events:
When:
February 13th - 17th, 2007
Where:
Tlaquepa- que, Jalisco, Mexico
National Handcrafts Trade Fair
February 13 - 17, 2007

Showcasing Mexican handcrafted items in the following areas:

  • Wrought Iron
  • Jewelry
  • Clay
  • Wood
  • Pewter
  • Glass/Blown Glass
  • Ceramics
  • Lighting
  • Apparel Clothing & Accessories

“El Refugio” Convention Center

Tlaquepaque, Jalisco

Mexico