The economy ministry, whose tally is even lower, has confirmed that among those that have failed to comply are firms accounting for 80% to 90% of the exports falling within the purview of the US law (names like Bimbo, Corona and Jumex). The US takes about 83% of Mexico's US$8bn of agri-food exports.
This situation does not, however, spell an immediate export cutoff: there is a four-month grace period for exporters to comply. Apart from registration, Mexican exporters are worried about their ability to comply with the promise to forewarn US authorities of the arrival of goods at points of entry. A broader fear is that the inspection component of the Bioterrorism Act will perform as a de-facto non-tariff trade barrier, despite US protestations that this is not its intent.
INDUSTRIAL GROWTH | Knock-on from US still faint. Industrial production in Mexico in October was up a mere 1.18% on the same month last year, which left the 10-month total 0.8% lower than a year earlier. The October figures were boosted mainly by mining (up 6.9%) and construction (up 4.6%) - the latter an encouraging sign regarding the rebound of the domestic market. Manufacturing, though, was down 2.4%, with the maquiladora (assemby) sector, the one most closely liked with the US market, down 3.9%.
ENERGY REFORM | Pemex option clears senate. A key piece in an `state sector' variant of energy reform cleared the senate last week on a unanimous vote. It provides for co-generation between the state oil company, Pemex, and the main state-owned power utility, CFE, using the heat and energy created by Pemex's six refineries. The promoters of this scheme say that it could add 4,000MW to Mexico's capacity over the coming eight years.
In a parallel move, CFE director Elías Yub submitted to congress draft legislation to amend the constitution in order to allow private participation in the generation and distribution of electricity. The leader of the opposition PRI's so-called `popular' faction in the senate, Manuel Bartlett, has served notice that his group will oppose this reform.
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