Mexican Entrepreneurship

In the US, we often think that stating your opinion is a right of all people all over the world.  Well, that, for many years, has been risky in many parts of the world.  Imagine a place where you start your own business, you build it up and then the government, for an entirely unrelated reason, either closes it down or creates rules making your progress impossible.  For many years, this has been a fact in Mexico and many other places.  It was only since 2000, when Vicente Fox became President that true freedom appeared.  It is only now, eight years later, when people are just beginning to have confidence in their government.  Why, what happened?

 

NAFTA happened.  NAFTA forced the Mexican government to be stable or lose all the new opportunities that it has presented.  Failure to remain stable including losing many economic opportunities, there are thresholds on economics, output, human rights and environment that need to be met.  This is one of the reasons that wealth along the border is occurring.  Stability brings wealth, and wealth brings more stability.  Sure, there are issues with drugs and violence.  However, these are mainly caused by success and new wealth.  Immigration has been an issue, but as we will see over the next few years, immigration will slow down.  Immigration was up 450% from the mid 80’s to late 90’s.  This was mainly because of the failure of the Mexican agricultural sector to modernize.  The agriculture industry in Mexico cratered and people needed to go somewhere for work.  That somewhere ended up being the US.  Also, as multi-nationals continue to purchase Mexican farms we are seeing a rapid and success re-emergence of the agricultural industry in Mexico.

 

On the Wealth Along the Border radio show on http://www.blogtalkradio.com/marsound Thursday, Beto Pallares of El Paso economic development group called TransPecos/El Paso Regional Center of Innovation http://www.tpeprcic.org/about_rcic.php.  They have a number of programs that help entrepreneurs in their region.  What needs to be stressed is how the people of the region, many of Mexican decent, finally believe in their country and the new opportunities in front of them. These are exciting times for this region.  As Mexico is producing more engineers than the US, these people will be the ones creating new innovation and building businesses.  It is up to the rest of the US to focus on this region, nurture these opportunities and make them happen for everyone’s good cause.

 

We want to applaud the work that Beto and his team are doing and recognize that things are changing along the border.  This is the fastest growing region for both countries.  Instead of the bitterness is there between the people of the US and Mexico, maybe it is time to look in the mirror get involved with the success which is occurring there.

El Paso has role in Juárez violence

By Erica Molina Johnson / El Paso Times

Article Launched: 05/29/2008 12:00:00 AM MDT

UTEP political science Associate Professor Tony Payan called the violence in Juárez a struggle for power over the Juárez drug cartel. Payan said Mexican leaders for too long have turned the other way as police accept payoffs. (Mark Lambie / El Paso Times)

Related

An end to the violence in Juárez won’t be in sight until the El Paso community acknowledges its role in the problem, UTEP political science Associate Professor Tony Payan said during a panel discussion on the issue.”We tend to ignore that this often begins in El Paso,” he said.

He was among a panel of five who spoke to more than 100 gathered Wednesday at the University of Texas at El Paso to discuss the continuing violence across the border.

Payan told them a story recently shared with him by a student, who talked of other UTEP students who were taking turns snorting lines of cocaine at a graduation party.

“So this is our problem, too, on this side of the border,” Payan said. “I think it’s foolish of authorities and politicians and

UTEP political science Associate Professor Irasema Coronado was one of several educators and law enforcement members who took part Wednesday in the conference on Juárez. (Mark Lambie / El Paso Times)

bureaucrats to deny this is a shared problem. It begins here, it goes there, and it comes back here.”He likened the situation to an alcoholic denying he has a problem with alcohol.

Payan was joined on the panel by Irasema Coronado, UTEP associate political science professor; Sheriff Jimmy Apodaca; William Burns, special agent of the regional security office for the U.S. Consulate General; and Gisele Fernández Ludlow, Mexican consul of political affairs and border issues.

Coronado said after the discussion, “There are so many people giving opinions about what’s going on in Juárez, and they’ve never even been there. Our students come from there. This is our reality.”

The panelists agreed that the violence will probably remain confined to Juarez

Burns said, “We don’t anticipate the violence is going to come across into the U.S. This is primarily narco against narco violence.”

He said that so far this year, about 360 people have been slain in Juárez. This compares to about 300 slayings in all of 2007.

“The possibility of you getting gunned down in Juárez is actually very low,” Payan said.

The discussion occurred as the bloodshed continued. A man was shot to death Wednesday morning inside a door-and-window store. Three others were killed Tuesday.

Said Apodaca, “It really is a tragedy, the ongoing violence in Juárez during these days. We pray, of course, that violence will not spill over to this side of the border, but should it occur, we are prepared to respond appropriately to any crime that’s committed on this side.

“People who go to Mexico should be careful when they go across, but they shouldn’t be afraid to visit relatives and go shopping,” Apodaca said.

Payan said the violence stemmed from cartels fighting each other, from fighting within the ranks of the various cartels and from a corrupt police force.

“It’s a very rough time to be a cop in Mexico,” Payan said. “If you’re with one organization, you’re going to be targeted by the other. If you’re an honest cop and you’re doing your job, you will also be targeted — in this case by both organizations.”

Fernández said the United States and Mexico must cooperate more to curb the violence.

Other solutions mentioned included money for substance abuse programs; curbing weapons trafficking into Mexico; legalizing drugs in the United States; a well-trained and professional police force; and increased awareness of the violence on both sides of the border.

UTEP senior Alberto Macias was among those who attended the discussion.

“I’m from Ciudad Juárez and I see the problems we are facing right now,” he said.

“As a college student, I also know we can have a contribution to this (solution). So many people think, ‘What can I do? Nothing at all.’ But just learning about different opinions, what people in power are thinking about, can help us realize what the problem is. and in the future we can play an important role.”

Erica Molina Johnson may be reached at emolina@elpasotimes.com; 546-6132.

El Paso Times reporter Daniel Borunda contributed to this report.

LOGISTICS ALONG THE FASTEST GROWING REGION FOR BOTH THE UNITED STATES AND MEXICO

May 15th, on an informal BlogTalkRadio show the discussion was with John Brown, a logistics expert in Tucson and Edgardo Cabrera a Mexican logistics expert on the commercial transportation between Mexico and the US. They discussed the issue of trucks, trains and water transportation between the two countries and what is working and what needs more attention.

From the table below you can see the progress of the surface transportation, truck, rail and pipelines. Obviously, trucks are the majority of methods of transport. There is an expected increase in pipeline over the coming years due to liquid natural gas (LNG) ports being developed. I also added the second table to show how the destinations go far beyond the border region.

Table 6. U.S. Merchandise Trade with Mexico by Surface Modes of Transportation

(millions of dollars)

Mode		2005	2006	2007	Percent Change 2005-2006	Percent Change 2006-2007
All Surface Modes	Imports	135,400	155,205	167,713	14.6	8.1
	Exports	104,277	116,749	118,758	12.0	1.7
	Total	239,677	271,954	286,472	13.5	5.3
Truck	Imports	112,268	126,464	137,037	12.6	8.4
	Exports	83,341	92,992	93,047	11.6	0.1
Rail	Imports	20,782	25,864	27,060	24.5	4.6
	Exports	15,748	17,271	19,340	9.7	12.0
Pipeline	Imports	0	55	169	NA	204.5
	Exports	543	707	787	30.2	11.4

Source: BTS TransBorder Surface Freight Dataset, http://www.bts.gov/transborder/

Note: The value of all surface modes is not equal to the sum of truck, rail and pipeline modes. The value of trade for all surface modes includes shipments made by truck, rail, pipeline, mail, foreign trade zones, other and unknown modes of transportation. For additional detail refer to the TransBorder Surface Freight data “Sources and Reliability” statement: http://www.bts.gov/ntda/tbscd/srfin.html; Numbers may not add to totals due to rounding.NA – not applicable

Table 7. Top 10 States Trading with Mexico by Surface Modes of Transportation in 2007, Ranked by Surface Trade Value

(millions of dollars)

Rank	State	2007
1	Texas	87,782
2	California	49,198
3	Michigan	30,783
4	Arizona	10,177
5	Illinois	10,133
6	Ohio	6,911
7	Tennessee	6,487
8	North Carolina	5,448
9	New York	5,229
10	Pennsylvania	5,196

We all have read and heard about border issues such as immigration, drugs and violence. What many fail to realize is that the proposed and deployed remedies for these issues have an effect on commerce. Half day waits and the certification of drivers on both sides are two of the major issues. This has effected delivery dates and creates all types of logistic issues. John Brown, on the broadcast, discusses how Tucson-Nogales has streamlined things a bit and that is a start. There are also strategies on using other types of transport more, but as we learned from the broadcast, these as issues as well.

The threat is real for both sides. For the United States there is the threat of loss of trade with Mexico, you can see from the tables below, this is substantial trade. For Mexico, they will be forced to look at other trading partners. China’s trade with Mexico is now at $11B annually and growing. In fact there are many cross country programs in effect right now. Relations with other countries are growing as well.

The show discusses some of the issues and solutions that both countries need to deal with now. This region is the fastest growing region for both countries. It is so amazing that while the rest of the United States continues to deal with media pressure, the border is forced to deal with the real issues that have real consequences to the United States.

Month	Exports	Imports	Balance
January 2008	11,878.3	17,019.6	-5,141.2
February 2008	12,220.1	17,717.2	-5,497.1
March 2008	11,717.5	17,691.9	-5,974.4
TOTAL	35,816.0	52,428.6	-16,612.7

NOTE: All figures are in millions of U.S. dollars.

Month	Exports	Imports	Balance
January 2007	10,745.0	15,327.4	-4,582.5
February 2007	10,056.4	15,136.9	-5,080.5
March 2007	11,573.6	18,284.7	-6,711.1
April 2007	10,988.8	16,203.4	-5,214.6
May 2007	12,054.6	17,925.7	-5,871.1
June 2007	11,616.8	18,002.5	-6,385.7
July 2007	11,186.2	16,805.4	-5,619.2
August 2007	12,302.3	19,248.9	-6,946.6
September 2007	11,326.3	17,628.3	-6,302.1
October 2007	12,356.0	19,820.6	-7,464.5
November 2007	12,103.4	19,672.6	-7,569.2
December 2007	10,231.9	16,742.6	-6,510.8
TOTAL	136,541.3	210,799.0	-74,257.8

• ‘TOTAL’ may not add due to rounding.
• Table reflects only those months for which there was trade.
• CONTACT: Data Dissemination Branch, U.S. Census Bureau, (301) 763-2311
• SOURCE: U.S. Census Bureau, Foreign Trade Division, Data Dissemination Branch, Washington, D.C. 20233

Trade with Mexico : 2006

NOTE: All figures are in millions of U.S. dollars.

Month	Exports	Imports	Balance
January 2006	10,503.4	15,227.9	-4,724.5
February 2006	10,050.8	14,820.1	-4,769.3
March 2006	11,968.0	17,363.4	-5,395.5
April 2006	10,772.5	15,665.3	-4,892.8
May 2006	11,569.6	17,154.6	-5,584.9
June 2006	11,714.6	17,787.3	-6,072.8
July 2006	10,408.1	15,464.5	-5,056.4
August 2006	11,735.3	18,038.7	-6,303.5
September 2006	11,009.0	16,897.5	-5,888.5
October 2006	12,409.9	17,515.2	-5,105.4
November 2006	11,776.5	17,246.6	-5,470.0
December 2006	10,061.2	15,072.1	-5,010.9
TOTAL	133,978.8	198,253.2	-64,274.3

• ‘TOTAL’ may not add due to rounding.
• Table reflects only those months for which there was trade.
• CONTACT: Data Dissemination Branch, U.S. Census Bureau, (301) 763-2311
• SOURCE: U.S. Census Bureau, Foreign Trade Division, Data Dissemination Branch, Washington, D.C. 20233

---

Trade with Mexico : 2005

NOTE: All figures are in millions of U.S. dollars.

Month	Exports	Imports	Balance
January 2005	9,217.1	12,073.9	-2,856.8
February 2005	9,010.1	12,607.1	-3,597.0
March 2005	9,914.4	14,114.4	-4,200.0
April 2005	9,840.0	14,281.7	-4,441.7
May 2005	9,929.3	14,413.5	-4,484.1
June 2005	10,113.5	14,848.6	-4,735.1
July 2005	9,220.3	12,710.2	-3,489.9
August 2005	10,665.2	14,895.6	-4,230.4
September 2005	10,284.5	14,517.6	-4,233.1
October 2005	10,961.0	15,720.3	-4,759.3
November 2005	10,978.6	15,499.1	-4,520.5
December 2005	10,230.7	14,426.7	-4,196.0
TOTAL	120,364.8	170,108.6	-49,743.8

Mexico, China to push forward bilateral investment agreement

From: CHINA VIEW
March 23, 2007 13:01 Beijing Time

MEXICO CITY, March 22 (Xinhua) — Mexico and China will seek important progress towards signing a reciprocal investment promotion agreement before the end of 2007, Mexico’s Secretary of Economy Eduardo Sojo said in the opening session of the 15th Mexico-China Plenary Meeting on Thursday.

“There is a great deal of interest for the current government to achieve this agreement with the Asian nation,” Sojo said in the meeting, organized by the Mexican Council to promote foreign trade, investment and cooperation in technology.

“We are just beginning the negotiation process with China, hoping for a second meeting next July,” Sojo said.

He said Mexican state governments are negotiating with Chinese provincial governments on some auto projects to receive investments this year.

Official figures show that the bilateral trade volume has increased from around 13 million U.S. dollars in 1972 when Mexico-China ties were formed to more than 11.4 billion dollars in 2006.

Wealth along US-Mexico Border Show 2

Tomorrow’s radio show with Michael Orshan and guest John Brown should prove to be fascinating.

John is currently employed by the Tucson Metropolitan Chamber of Commerce as the Manager of Business Development where he develops programs and services for chamber members.

Previously, John has earned more than 25 years in the international logistics field and before that, he worked for seven years in the accounting/auditing industry.

This week’s show should be eye-opening and thought provoking. If you’d like to listen to the show and submit questions, just click here.

Mike will be live at 9 pm Central time on Thursday, May 15th. Hope you can make it.

CLICK HERE TO LISTEN TO THE PREVIOUS SHOW.

Wealth along the US-Mexico Border

When most people in our area (Nashville, TN) think of the US-Mexican border, they envision a long, desolate scene with immigrants running to get across. Some think of narcotics traffic northward, and still others think about booming cities and Cinco de Mayo.

However, most don’t know about the border and the potential for growth between the two nations. Did you know that along the almost 12 thousand miles of border between the US and Mexico, there are approximately 12 million residents? Did you know that the aerospace and technological industries have approximately 1 million people working in them in Mexico alone? Did you know that Mexico is the United States’ second largest trading partner? Did you know that the United States is Mexico’s largest trading partner? Did you know that approximately $1 Billion per day is being traded across the border? Yes, ONE BILLION DOLLARS

With such a huge trade occurring between the two countries, one might be incredulous that it could be taking place. But Deputy Consul of Mexico in Tucson, Arizona Bernardo Mendez-Lugo explains how President Bush and President Calderon are focusing on security a top issue.

“Not only the migration and other issues of security,” Mendez said during a radio interview last week, “there are problems with Narcotics and the drug trafficking, but also Mexico is very worried about the arms traffic into Mexico, and I think this is one of the issues that President Calderon was pointing out in this recent meeting of the Tri-National prosperity and security partnership in New Orleans with President Bush and Prime-Minister Harper.”

Mendez-Lugo acknowledges that traffic of illegal drugs and people is an issue, but at the same time, he believes that there needs to be better control at ports of commerce and at Customs stations.

“We can do more in industry and international trade and the facilitation of trade with better ports of entry and better technology for the border system for customs,” Mendez-Lugo told host Mike Orshan.
So why are we, as Americans sending Billions of dollars overseas to China when Mexico is a closer and equally available trading partner?

Listen to the whole interview here.