Doing Business In (Insert Country Name Here) - Department of ...

the same companies for monopolistic practices. Under NAFTA, foreign investors fromthe U.S. and Canada are now permitted to own up to 100 percent of local trucking andbus companies, however, several companies have encountered long wait times andlegal tie-ups when trying to obtain permits. U.S. trucking companies authorized to travelMexican highways under a bi-national cross-border trucking pilot program retained theiraccess when the U.S. Congress cancelled the program in March 2009.CINTRA, the government holding company for the Mexican flag carriers, Mexicana andAeromexico, sold Grupo Mexicana to Grupo Posadas in December 2005. GrupoAeromexico was sold to a consortium led by Citibank-owned Banamex in October 2007.The emergence of low-cost domestic airlines such as Volaris and Interjet have increasedcompetition and led to lower prices. Foreign ownership of Mexican airlines remainscapped at 25 percent. Foreign ownership in airports is limited to 49 percent. Foreignexpress delivery service companies continue to complain that Mexican legislationunfairly favors Mexican companies by restricting the size of trucks international carriersare allowed to use.INFRASTRUCTUREMexican infrastructure investment, with certain previously noted exceptions, is open toforeign investment. The Mexican government has been actively seeking an increase inprivate involvement in infrastructure development in numerous sectors, includingtransport, communications, and environment. Improvements to the nationalinfrastructure are seen as a key element in strengthening economic competitiveness andattracting investment to disadvantaged regions of the country. In July 2007, PresidentCalderon presented the National Infrastructure Program 2007-2012 a key aspect ofwhich is an increase in private investment through means of Service Lending Projects(public-private partnerships) and concessionary schemes. In January 2009, PresidentCalderon reiterated his commitment to the National Infrastructure Program as acountercyclical tool in the face of a slowing economy. Several large projects have beenscaled back or delayed. Difficulty raising private capital in the 2009 recession has led togreater support from multilateral banks. President Calderon recently submitted a bill forpublic-private partnership to facilitate and attract more private investment ininfrastructure projects. The bill, yet to be approved by Congress, would streamlineprocedures and give more legal certainty and protection to investors. The Office of thePresident provides an English language copy of the plan at:www.infraestructura.gob.mx.Conversion and Transfer PoliciesReturn to topMexico has open conversion and transfer policies as a result of its membership inNAFTA and the OECD. In general, capital and investment transactions, remittance ofprofits, dividends, royalties, technical service fees, and travel expenses are handled atmarket-determined exchange rates. Peso/dollar foreign exchange is available on sameday,24- and 48-hour settlement bases. Most large foreign exchange transactions aresettled in 48 hours. In June 2003, the U.S. Federal Reserve Bank and the Bank ofMexico announced the establishment of an automated clearinghouse for cross-borderfinancial transactions. The International Electronic Funds Transfer System (TEFI) beganoperating in 2004 and commissions on transfers through the system have droppedrapidly.