Industrial Production Grew 4.2% in January

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The manufacturing and construction sectors pushed industrial production to a 4.2% annual rate during January, according to the National Statistics and Geography Institute.

With monthly rate figures, the industrial production indicator advanced 0.83% in the first month of 2012, underpinned by the manufacturing sector which climbed 0.98%, followed by construction with 0.82%.

It should be mentioned that Mexican industry grew 3.8% although a slight deceleration is expected apace with the country's economy.

Annual Comparison by Economic Sector:


1. Manufacturing: 5.6%

2. Construction: 4.8%

3. Electricity, Water and Gas: 3.3%

4. Mining: fell 1.3% in the month in question.

 

Clothing Industry Exported US$7 billion in 2012

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The Secretary of Economy, Bruno Ferrari, reported that in 2011, the Textile-Clothing Industry registered exports of around US$7 billion, an increase of 9.2% over the previous year.

During the swearing in of the new Board of Directors of the National Chamber of the Clothing Industry (Canaive), the head of the SE celebrated the fact that for the second year running the textile-clothing chain has shown positive results, placing a higher number of products abroad.

The main destination for the sector's exports was the United States with 95%, which represents more than US$5 billion and has created 22,309 new jobs from 2010 to January 2012.

“We are demonstrating that the Mexican clothing industry has everything to compete and win in any market," said Ferrari.

SE: Mining Sector has Captured US$ 16.717 billion

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The Secretary of Economy, Bruno Ferarri confirmed that the mining sector contributes 4.9% of the Gross Domestic Product (GDP) and has captured US$16.717 billion during this administration.

During his participation in the Mexican Mining Day Conference, held as part of the biggest mining fair in the world, the Prospectors and Developers Association of Canada Expo, the federal official emphasized that this figure is 224% higher than the US$5.159 billion obtained during the previous government.

Addressing international investors in the sector, Mr. Ferrari García de Alba, underlined the actions initiated by the federal government to improve the business environment and assured them that Mexico's economic stability has driven growth in a complex global environment.

The head of the SE said that Mexico is the foremost country in Latin America and the fourth worldwide in receiving investment for mining exploration, and reported that at last year's close, mining had generated 309,722 direct jobs, 9.13% more than in 2009.

It is worth mentioning that mining investment will reach US$20 billion in this six-year term, while the amount of investment in the sector reached US$16.717 billion in the 2007-2011 period. In addition, the sector has generated 309,702 direct jobs up to 2011 and gold production increased 250% from 2003 to 2010.

L´Oreal Brings Color to SLP

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San Luís Potosí.- The French cosmetics company L'Oréal announced the start of operations in its San Luís Potosí plant for April 1, generating 400 direct jobs and with an investment of US$50 million. 

Martha Elena Meade, Secretary of Economic Development of the state explained that a total of 800 jobs will be created, half of which will be indirect.

"This plant in Villa de Reyes will generate 400 direct jobs, a similar number of indirect jobs and will have an initial production of 200 million units of hair dye that will be distributed in the Latin American market," said the official.

Ms. Meade and the CEO of L'Oréal in Mexico, Luca Burei, yesterday saw the progress made in the construction of the plant during a tour they made of the installations which are about to begin the first stage of operations.

The state official emphasized that L'Oréal chose San Luís Potosí for its production expansion projects because of its geographical location in the center of the country, the work climate and the optimal conditions for economic development.

"From here the company can bridge the South and North American markets, as well as satisfy the demand here in Mexico, classed as one of the major hair dye consumers in the world," Ms. Meade added.

She also spoke about work on a supplier program for L'Oréal, mainly with small and medium-sized business, especially those dedicated to the production of aluminum and plastic containers, to satisfy the company's world demand.

Automotive Sector Prepares for US$2.3 billion Investment

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Two auto giants, Ford and Chrysler are on the verge of announcing an investment totaling US$2.3 billion to expand and create assembly plants, according to sources from the sector.

Ford is to invest US$1.3 billion to expand its assembly plant in Hermosillo, Sonora, which will create around 1,000 direct jobs.
For its part, Chrysler will invest US$1 billion to build a new plant in Coahuila, where, in a joint venture with Fiat, it will assemble a Ducato van.

Another announcement is expected from Honda, who will begin construction of a plant in Celaya, Guanajuato, where it will spend US$800 million to begin production in 2014.

It should be mentioned that Nissan announced a US$ 2 billion investment for the state of Aguascalientes where it will build its third plant.

China's Restrictions on Commodities Violate Trade Rules: WTO

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The Appellate Body of the World Trade Organization (WTO) gave its final report in which it confirmed that the restrictions imposed by China on the export of various commodities are in violation of international trade rules within the WTO framework and are not justifiable as environmental measures or for the preservation of natural resources.

With the decision, the Asian country will be forced to eliminate or adjust its measures, otherwise it may face trade sanctions by these three countries. As a result, the Secretariat of Economy reiterated its commitment to vigorously fight any international trade practice that does not strictly adhere to international provisions and which affects or puts Mexican products and services at a disadvantage.

The controversy surrounds the various restrictions China imposes on the export of products (coke,  bauxite, fluorspar, magnesium, manganese, silicon metal, silicon carbide, yellow phosphorus and zinc) used in the production of steel, aluminum and some chemicals, through the application of tariffs, quotas and export permits, and a minimum price system.

Relevant Aspects of the Decision:

WTO recommendations have implications on measures which are replaced annually. China cannot justify the imposition of export tariffs as an environmental measure.

It rejects the interpretation issues that China has suggested in order to evade its obligations in the WTO.

It confirms that the tariffs and quotas which restrict the export of raw materials are in violation of the WTO.

Mexico Maintains its Defense of Tuna before the WTO

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The Secretariat of Economy continues its analysis of the arguments presented by the United States to the WTO to restrict trade in Mexican tuna. The SE gave the assurance that it would defend the reasoning behind the favorable result in determining that the measures related to dolphin-safe labeling constitute an unnecessary obstacle for the trade of the product in the US and are in violation of the WTO multilateral rules.

On September 15, 2011 the WTO panel issued its ruling in which it indicated that the United States' dolphin-safe labeling is an unfair barrier to trade since it does not adequately inform the consumer about the protection of dolphins: Mexican tuna is captured through internationally endorsed sustainable methods.

The start of the procedural stage of the appeal allows Mexico to request the revision of those issues on which the panel may have made an unfavorable legal analysis. In this case,  it deals only with the discriminatory aspects of dolphin-safe labeling, since that measure affects Mexico to a greater degree than any other exporter. For that reason, Mexico will file a counter-appeal to the WTO in the next five days.

 

Maquila and Manufacturing Sector: Examples of Dynamism

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The Secretary of Economy, Bruno Ferrari, said that the maquila and manufacturing industry is one of the principal sources of dynamism in the country's economic development and generates close to 1,200,000 jobs.

At the swearing in of the new Board of Directors of the National Council of the Maquila Export Industry, the official endorsed the SE's support with encouragement from the industrial sector, since it represents one of the main sources of employment and investment attraction.

Accompanied by Luis Aguirre, incoming President of the National Council of the Maquila Export Industry and before members of the Council, Mr. Ferrari García de Alba recognized the commitment of the maquila and manufacturing export industry to innovation and competitiveness, without which progress would be difficult.

Automotive Sector Hits Historic Figure

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The Mexican Automotive Industry Association reported that the industry hit historic figures last year when it manufactured 2.5 million cars and exported 2,143,879 units.

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SE and PI Announce New Investments in Puebla

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The Secretary of Economy, Bruno Ferrari, led the rollout of the ThyssenKrupp Presta de México's new production line and laid the first stone of what will be the new Euromotion and Airtemp installations, in the Parque Industrial Textil 1 in Huejotzingo, Puebla.

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