Skip to comments.Mexico's new antimonopoly legislative bill advances (probably due to immigration pressures)
Posted on 04/08/2006 3:22:43 PM PDT by Shuttle Shucker
Mexican lawmakers won backing from the nation´s largest business group for a bill to increase competition in industries ranging from telecommunications to manufacturing, paving the way for passage as early as this month.
The legislation, which would increase fines for anti-competitive practices, limit appeals and force repeat offenders to sell assets, may be voted on by the Chamber of Deputies Economy Committee on April 18, said Jorge Luis Hinojosa, a member of the committee. The full house would vote two days later, barring significant changes, and the Senate by the end of the month, he said.
Teléfonos de México SA, the fixed-line telephone company controlled by Carlos Slim, is among companies in Mexico whose high prices are limiting the nation´s ability to compete, central bank Governor Guillermo Ortiz said March 8.
The proposed law is aimed at curbing such dominance to help spur economic growth and create jobs, said Eduardo Pérez Motta, chief of the anti-trust agency. "It´s a law that will have a big impact on the country´s competitiveness, on growth, on employment and with very clear benefits for consumers," Pérez said in an interview late Thursday.
The lower house committee on Thursday reached agreement on the bill with the Business Coordinating Council (CCE for its intials in Spanish) )and the antitrust agency, Hinojosa, a member of President Vicente Fox´s National Action Party, said in an interview on Thursday. The law would increase fines to as much as 10 percent of annual sales and create incentives for executives to bring forth evidence of anti-competitive practices, said Pérez.
The agency would have the power to make visits to companies to verify compliance and could break up companies that repeat offenses, he said. "Mexico has been losing competitiveness and a lot of it is because inside the country there hasn´t been competition," said Hinojosa. "The intention of this law is to give incentive inside Mexico so there are no monopolies and to give access for more competition in markets."
Companies backed the bill after lawmakers agreed to require a court order for verification visits and to limit the visits to information previously cited, said Oscar Fitch, a member of the business council. Business executives also demanded clearer definitions under the law for terms such as monopolistic practices and efficient markets.
"We´re now all in agreement," said Fitch, president of the Mexico-City lobbying firm Fitch & Asociados. "It´s a step forward because it´s a more modern law, it gives us more legal certainty and there´s less discretion on the part of authorities."
Telmex said in a statement it declined to comment on the law while it´s still under debate in Congress. The number of appeals from companies that use several courts to delay implementation of decisions may drop by 30 percent under the new law, Pérez said.
Here's a recent article (also in English) about how Mexico's finance secretary has said that Mexico's monopolies in the telecommunications, electricity, petroleum and other sectors are hurting its ability to compete globally:
It's significant because in the past it was rather unheard of for a govt. official to act so patriotically down there (as opposed to timidly if not corruptly). The more we clamp down on illegal immigration (where's the wall the House voted for?), the more Mexico's reformers can become emboldened (and better protected in that land of rampant assassinations) to keep trying to make a difference in that fledgling democracy on our Southern border.
Break that and the 12 families lose their grip on the treasury.
Mexico's federal competition commission:
has its share of folks who work hard to diminish the adverse consequences of the vast, downright monopolistic concentration of wealth into the hands of very few in Mexico. Such robber barons are largely to blame for Mexico's need to export millions upon millions of illegal immigrants.
Currently Carlos Slim, the owner of Mexico's near phone monopoly TelMex (which has 93% of local land-based lines) is ranked #3 on Forbes' list of the world's wealthiest people (behind merely Bill Gates and Warren Buffet). He also owns America Movil / Telcel which has over 80% of the cellphone accounts in Mexico. Fees are comparatively very high, even as Mexico's foreign investment law:
somehow still manages to evade World Trade Organization Doha Round negotiation pressures by continuing to force foreign ownership in land-based telco services to be limited to merely 49%. Consequently MCI and AT&T lost their shirts in Mexico while Carlos Slim snickered and aired anti-gringo, downright racist advertisements further sealing their fate. We let THEM own 100% of their telco operations up here, but nobody wants to buy their mediocre "services" so companies like TelMex in the USA have scaled back operations. Nevertheless, we can't own more than 49% down there so unlimited calling plans don't even exist in Mexico yet.
Thanks to the World Trade Organization's ongoing Doha Round negotiations, the United States Trade Representative's Office could help us do something about this and plenty of other anti-gringo injustices down there that result in the flooding of illegals into our own country, if called upon enough:
tel. 202-395-3150, 202-395-7305
Such calls empower and embolden reformers at our own USTR to stand up to those in our federal govt. who don't want to risk annoying Mexico's government (which is still complacent and afraid of Carlos Slim who can buy so many media advertisements wherever he likes that almost everyone with a thinking mind down there is at least somewhat afraid of him).
The U.S. Trade Representative's office is heavily involved in WTO Doha Round negotiations to try and make such dreams a reality. Feel free to call them and ask what they've done for us taxpayers lately?
tel. 202-395-3150, 202-395-7305
The sanctity of our own borders remains in the balance.
"Do as I say, not as I do..."
Can you say "Pemex" ???
Mexico will be basically out of petroleum in less than 2 decades, according to predictions from numerous sources. Think how much our borders will get flooded then if they don't shape up down there beforehand?
I support that suggestion whole heartedly.
A cursory review of recent history indicates the we will have better luck reforming the Mexican oligarchy than our own political class.
The growing percentage of Mexico's poor, which we are educating, is going to come back to haunt Mexico's elite.
Just as we are being drug into the third world, they will be drug into the first.
Mexican Gov't Wants Links with US Firms for Oil Exploration -----http://www.rigzone.com/news/article.asp?a_id=30411
I highly agree with you. There are currently 3 million internet access accounts servicing Mexico's 105 million. Mexico govt. sometimes inflates that figure, claiming there are 6 users per account. The more there are online, the more enlightened they become. Wireless broadband solutions (WiMax, for example) remains pent up in Mexico's telecommunications bureaucracy:
That can change, though. This anti-immigration wall is forcing Mexico's government to adapt. Stress is the mother of innovation and our immigration backlash is the cradle.
But Mexico's labor unions don't want anything resembling privatization, because then they'd have to work. They are still legally allowed to protest and block traffic down there and they do so whenever there's a potential reform like that, or the lack of a pay-hike, or whatever else irritates corrupt union leaders. No wonder they won't let U.S. labor unions, not even the REPUBLICAN sympathetic Teamsters Union, get active in Mexico.
Can you believe how Mexico hypocritically complains about OUR immigration laws while maintaining such excruciatingly anti-gringo immigration laws of its own (which are FAR more restrictive than ours)?
I would agree. The Mexicans really need to go back to their homeland and join in making their own country better instead of blindly following crooked leaders.
IMO, a lot of free traders are reaping what they sewed.
We didn't have this mess of illegal immigration until NAFTA. NAFTA was supposed to stop the flow of illegal immigration but instead increased the flow. Now, if I read you correctly, you want us to beg or call the WTO. LOL!!!!
Mexico will remain corrupt. Orbrador, the front runner in the presidential election, is supported by Carlos Slim.
Any thoughts for how we can facilitate the reformers' finally getting to reform Mexico like this thread's news shows is potentially on the verge of happening? In my humble opinion, our not letting up on the immigration debate helps. But there's still other stuff we can astutely do too, like call the USTR I guess to demand more pressure at the WTO Doha Round level. Anything else come to mind?
Mexico developed health care breakthroughs during the 1970's when petroleum prices were so high globally, so that's when their baby-boomer generation emerged. They're now old enough to need work and have flocked to the USA. Can you imagine how much worse things would be if it wasn't for NAFTA and the democracy that it helped empower reformers in Mexico to finally obtain for our neighboring #2 trading partner?
Incidentally Lopez Obrador is NOW in a statistical deadheat with the right-leaning Felipe Calderon (of the PAN party). The more we put pressure on Mexico, immigration-wise and pro-entrepreneurially, the less chance Lopez Obrador has of winning.
You mean we big-fat-albino-immigrant-hating-bogeymen are actually interested in HELPING the people of Mexico? Blasphemy!
Mexico's Calderon Leads GEA-ISA Presidential Poll With 36%
March 31 (Bloomberg) -- Felipe Calderon of Mexican President Vicente Fox's National Action Party led in a presidential poll for the first time, according to a survey by Grupo de Economistas Asociados-ISA.
Calderon had 36 percent support from likely voters, up from 32 percent in February, Mexico City-based consulting company GEA said today. Mexico City Mayor Andres Manuel Lopez Obrador, who has led polls in the past, placed second to 34 percent, down from 41 percent in the previous GEA poll.
Felipe Calderon's PAN party is the closest, ideologically, to Ronald Reagan's style of the Republican Party. How is it that Leftie Lopez Obrador led the polls without uninterruption for yearS only to suddenly lose that lead for the first time last week? My view is that the immigration debate's having reached its recent feverish pitch made more Mexicans realize that they had better learn to swim on their own, rather than sink into liberalism like Venezuela has done behind Chavez. Presidential elections (and Congressional ones, and there's NO incumbency down there) transpire this July 2nd.
Those with a vested interest in blocking reforms down there LOVE calling us racist whenever we do something to turn the pressure valve on them and their synecures. And conveniently enough for them, foreign ownership of t.v. and radio stations in Mexico is still GREATLY restricted to a mere minority interest. Consequently Mexicans are literally brainwashed, and the phone monopoly down there is still keeping nearly all of them OFF of the internet. Cable t.v. companies in Mexico STILL can't even offer phone service, so they're not yet a viable force...and since ownership of their companies is greatly restricted for foreigners, well you can imagine....
But don't you know were the facists by not wnating children to run into porn on the internet.
Mass deportation of Mexicans who have had a taste of freedom here in the states would be the best cure for Mexican politics, IMO.
There was an article on him recently about him making some charitable donations. Now I think he was trying to influence the outcome of this legislation.
The PAN party of Fox are socialists. There is nothing close to Reagan's party in that country.
More power to the Mexican people in their reform efforts!
The encouragement of illegal emigration from Mexico to the U.S. by the Mexican elite is propping up the oligarchs of that nation and screwing over workers and citizens on both sides of the Rio Grande.
Mexico is screwed once the illegal Americans show up for work...
Porn is not considered nearly as offensive in Mexico. It's readily available at streetstands (peddling magazines and pirated videos) and even pervades some newspaper ads down there. So that "justification" for stifling the internet's increased availability doesn't fly in Mexico.
And the reason it's not yet happening is????
Al Capone maintained soup kitchens for the poor's "benefit" even as his policies frightened investors away from those communities. All in the name of "public image." Carlos Slim's charitable donations are minimal, relative to his holdings at the nation's and North America's expense. The longer we take to fix the problem, the more lost generations there will be in Mexico that can't buy our exports.
I'm not sure I agree with you AT ALL. For one thing, our national debt up here is 70% of annual GDP and it grew a lot during Reagan's era too. In Mexico the national debt's now down to 24%. For another, we pass prescription drug programs in the wake of Reagan's not cutting back FDR's social security program. But Felipe Calderon of the PAN has said such programs are unsustainable in Mexico even as they were nevertheless created in ways he couldn't control from the outside.
Meanwhile, in Mexico the federal agencies' employees really do answer their phones. How about in Washington DC? Did Reagan reform the civil service? Mexico's trying.
You've got THAT right! Some say the Mexican "elite" are using the illegals up here to devalue U.S. property values so they can then buy it up and even reclaim it for Mexico someday (but mainly for themselves).
Not unless we reform Mexico's racist, anti-gringo immigration laws. Until then, Americans have the deck stacked against them down there.
Well they say the same about us and our inability to stifle demand for drugs exported from Colombia, and up through an unwilling neighbor that happens to be located just south of the USA. While they have a point, we could benefit Mexico by ALSO letting our lust for genuine capitalism (not just drugs) spill over into their country. The monopolies in Mexico need to be confronted head on. The robber barons running them are NOT that powerful; we're simply too inactive and unhelpful to the Mexicans trying to fight them.
I meant that them not having acsess to the internet then us trying to protect our children from vile things.
Evidently you know little about Mob Rule(democracy).. Who owns those businesses?.. The Mob owns businesses.. in the U.S. too.. The Mobs and/or a consortium of Mobs can own governments too.. i.e. U.S. Mexican border problem.. its not an accident..
Certainly, you will name these health care breadkthroughs and correlate them with their baby-boomers emergence.
Mexicans flocked to the borders when factories were built after NAFTA. It was easy for them to cross the borders since we have virtually no border security. At that point in time I can remember seeing Tyson Food ads in the local newspaper advertising for workers saying you don't have to speak English. The jobs were for Arkansas, Alabama and other poultry producing states.The newspaper was only 9 miles from Mexico.
We have poured billions into Mexico trying to make them into something that they are not. Naturally, we have a huge trade deficit with them. We Americans don't have a clue as to how much tax dollars have been given to Mexico to make NAFTA look good. Every time Condi Rice goes to Mexico she takes a handful of millions to just give away.
Reformers in Mexico????????V. Fox. Don't make me laugh. Mexico is a socialist country and will remain so.
Quite frankly, I could care less who wins the election in Mexico.
It's also not a problem that is without potential solutions. If that anti-monopoly law gets passed in Mexico, a major step will have been taken in the direction of progress. And if the USTR in Washington DC gets the foreign capital restrictions lifted via the WTO Doha Round...
>>>Certainly, you will name these health care breadkthroughs and correlate them with their baby-boomers emergence.<<<
Well, I don't advocate universal healthcare but Mexico adopted something akin to it, so infant mortality rates declined drastically.
If Mexico is socialist, what do you consider the USA? Our SOCIAL security stipends are far greater and more readily available, as is our prescription drug ENTITLEMENT. And our national debt dwarfs Mexico's, far less than our economy dwarfs Mexico's economy.
It's easier to fix Mexico than it is the USA, but once we fix Mexico it's easier to fix the USA by pointing to how the proposed reform already materialized nearby so why not here.
Must'a hurt when you fell off the turnip truck(shuttle)..
You're response to my post was and is a non sequiter..
When yer eyes focus back ... respond..
So you are saying that universal healthcare is equal to health care breakthroughs in Mexico. Oh, well!
Yes, we have many socialist programs in the USA. This is exactly the reason the illegals are coming. Some Mexicans come to work but many come for welfare and they will be demanding it this week in many marches. Obrador wants to give elderly Mexicans a small pension just like the U.S. He wants Mexico to take care of Mexico.
The U.S. has enough of their own problems without having to worry about fixing Mexico's problems. How many years after the passage of the great NAFTA, 1992, will it take to "fix" Mexico?
Feel free to clarify then...
Mexico's come a long way in the past decade. It's made a lot more progress than the USA in some ways.
Rather than digress on tangents about that, I'd like to simply say that Mexico is making progress against its monopolies, and our cracking down on illegal immigration helps with this.
They should all go back instead of breaking our laws that they know OUR crooked leaders won't enforce...
Our crooked leaders want US to be financially reponsible for these invaders, and Vicente Fox sits back and smiles at the suckers in D.C.
Fox thinks he wins either way. If we DON'T accept the illegals, then Mexicans focus their hatred on our so-called racism (instead of his not doing more to help his own people by taking on Mexico's monopolistic robber barons).
The people of America are banging their heads against a wall, trying to get through to the President of the United States, but all he wants to do is encourage this invasion and destroy our sovereignty.
Something stinks in the White House, and in the Senate. America needs a BIG CHANGE in "leaders"!
You make some very interesting points.
To me it seems like the best way to minimize the amount of damage that pro-illegals types here in the USA can do is to make Mexico's economy stronger so more illegals can afford to stay home or go back home. Hopefully we can lasso Carlos Slim and some other robber barons down there. Some Mexicans are trying very hard, I believe, but as with any reform drive, it can be a lonely battle. The more media outlets praise their efforts up here, and the more the USTR uses the WTO to help, the more they can get the job done for their beloved homeland.
Interesting article. Thank you.
Thanks, SS. You're right!
mordida runs deep and wide in mexico...