USAID Outlines Partnership with Mexico

The Latest Maquila Decree Amendments

Mexico is on the right path to advanced development, and the U.S. Agency for International Development (USAID) is working in partnership with Mexico to further this development, according the USAID Assistant Administrator for Latin America and the Caribbean Adolfo Franco.

Franco said that the Fox Administration has requested direct USAID assistance in several areas, including economic growth, the environment, education and combating infectious diseases.

Remittances from U.S.-based immigrants play an important role in the Mexican economy.  Approximately one-third of the $25 billion or more in remittances sent from the U.S. to Latin America each year go to Mexico, Franco estimated.  He said USAID is working with partners in the U.S. and Mexico to reduce the cost for Mexican-Americans to send money back to Mexico.  The USAID is trying to encourage the financial institutions that process these remittances to dedicate a percentage of their fees to community development in Mexico.

The USAID official emphasized the critical function of remittances in introducing economically disadvantaged Mexicans to the banking sector.  Franco said that USAID is actively working with financial institutions to help these Mexicans attain greater access to credit and increased support for their micro-enterprises.

USAID is also working with Mexican authorities to address environmental issues.  These collaborative efforts include dealing with natural disasters, fighting forest fires, and preserving rainforests and other natural resources.

For more information, please visit www.usaid.gov

Amendments to the Maquila
Decree by the law firm of Bryan, González Vargas & González Baz, S.C.

A Decree amending the Maquila Decree (the "Decree") was published in the Official Gazette of the Federation on May 12, 2003. The following are the most relevant aspects of the Decree:

1. Provides for the creation of "Holding Maquiladora" (Maquiladora controladora de empresas). In a Holding Maquiladora, two or more companies belonging to the same group will be able to operate under one maquila permit;

2. Companies operating under a Holding Maquiladora will be allowed to transfer goods among them without import/export manifests;

3. Financial statements of maquila companies will now have to be audited regardless of income or number of employees;

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