One way

The United States and Mexico reached an apparent breakthrough this month on the long running dispute over cross-border trucking that has hurt some U.S. exporters.  Under the solution proposed jointly, Mexican trucks will once again be allowed to complete deliveries to destinations throughout the United States, and as a result Mexico will remove retaliatory import duties on an array of U.S. products in place since 2009.  Once the proposed solution is formally published, it will be subject to a 45-day comment period before it can be signed into effect by the two countries.  It’s hard to tell at this juncture exactly when that will be, but if an agreement can be signed sometime in June or July, the punitive Mexican duties will be removed this summer and free trade in the affected products can resume.  In our opinion it will be none too soon, as U.S. agricultural exporters already have been punished enough by the Obama administration’s pandering to the Teamsters union.

Reports on some recent and upcoming investment collected from the local business media:

• Water treatment:  Mexican sugar producer Grupo Azucarero México (GAM) revealed it will begin construction next month on a new waste water treatment plant.  GAM has invested US$35 million over the past four years in automation process technology, as well as a system for generating electricity through steam produced by burning cane bagasse.
• Logistics: Guanajuato’s Guanajuato Interior Port multimodal logistics center will enter a new phase of expansion in the coming months.  Approximately US$55 million in new investment will be carried out to expand existing infrastructure at the site, which includes Customs facilities, a free zone, ground and air cargo handling services, industrial yards and related operations.
• Automotive: German engine components maker Getrag Transmissions Manufacturing inaugurated a new production plant in the central city of Guanajuato.  The US$500 million facility will manufacture transmissions for the Ford Fiesta line being built at Ford’s Cuautitlan Izcalli plant outside Mexico City.
• Manufacturing: French digital media manufacturer Technicolor will begin making 3D Blu-ray discs for Warner Brothers at its Guadalajara plant this year.  The company is investing US$11.4 million in the plant to boost production capacity.
• Green building: Mexican developer Homex announced plans to develop four new housing complexes in north western Mexico based on the concept of Integrated Sustainable Urban Developments.  The first of these complexes will require investment of US$27 million and all will incorporate green building technologies.    
• Real estate development: Cancun’s new mega convention center Cancun Messe, currently under construction, plans to open to the public to host the Latin American Food Show in September.  The expo center, which seeks to become the largest in Latin America, will have cost a projected US$270 million once complete.
• Aerospace: Bell Helicopter inaugurated a new manufacturing plant in the northern city of Chihuahua this month.  The plant will produce parts for Bell’s model 429 helicopter.
• Water treatment: Leading tequila producer Herradura inaugurated a new US$6.5 million water treatment plant at its production facility in Amatitan, Jalisco.  Herradura also announced additional investment of US$5 million to expand production capacity at the plant.
• Electronics: IT and electronics giant IBM recently invested US$20 million in its manufacturing plant at El Salto, Jalisco, to support production of data storage equipment for export.  The company reiterated its commitment to maintain and expand its Mexico operations.
• Rail freight: Railrod operator Kansas City Southern de Mexico announced plans to invest US$80 million to develop a freight terminal in the western state of Michoacan.  The terminal is intended to serve freight coming through the port of Lazaro Cardenas on Michoacan’s Pacific coast.
• Entertainment: Cinema operator Cinemex will invest US$9 million to develop a luxury movie theater complex in a large upscale shopping center currently under construction in the south eastern state of Tabasco.  The site will include VIP and 3D facilities.
• Aerospace: Canadian aerospace giant Bombardier announced plans to add five new plants to its existing manufacturing infrastructure in Mexico, via investment of US$300 million.  A stalwart of Mexico’s thriving aerospace industry, Bombardier advised it is considering investing a further US$100 million to increase its rail equipment manufacturing capacity in Mexico.