May 1995 Novedades Monthly newsletter of the National Law Center for Inter-American Free Trade Secured Financing Project Update The NLCIFT and a Mexican private sector group plan to submit a joint report to the Mexican government (SECOFI) by June 30, 1995. The report will present the findings of a year-long study on existing law and practice in Mexico concerning personal property and secured transactions and will set forth recommendations for legislative and registry reform. This report is intended to lay the groundwork for the next phase of the project, which will involve the drafting of proposed legislation with the aim of harmonizing Mexican law and registry operations with those found in Canada and the U.S. A draft of the study is now being circulated among the Mexican participants, which include representatives of the National Association of Mexican Banks, and a private industry coalition (COESE). Tentative plans have been made for a working meeting in Mexico City during the first week of June in order to facilitate the completion of the report in a timely manner. ** Results on NACST Meeting NACST met in Quebec City on April 24 and 25 to review the revisions made to the North American Uniform Surface Bill of Lading (NAUSBL) by the EDI Working Group. One revision was the renaming of the document to the "Uniform Transborder Motorfreight Bill of Lading" (UTMBL). It was decided that this name more effectively described the purpose of the document. The Committee made substantial revisions to the original document and the changes made by the EDI working group in March. Further negotiation of the terms and conditions, formally referred to as the "Uniform Operating Standards for Transportation Documentation in NAFTA" ("Operating Standards") are pending revisions to the Interstate Commerce Act and the Carmack Amendment in the U.S. The Committee also reviewed the Uniform Rules for Surface Transportation Documentation and Practice ("Rules"). Changes concentrated on the effect of the Rules on the Operating Standards. There was concern that the Rules would create new carrier defenses or shipper contract claims. Any provisions in the Rules that alter the contract of carriage will either be added to the Operating Standards or changed. The Rules and Practice Working Group will also be developing additional articles to make the Rules more comprehensive. Cargo insurance issues included a uniform endorsement for carriers operating internationally. Minimum cargo insurance is important to carriers and shippers and has been unanimously supported by the Committee. The deregulation of motor carriers, however, makes implementation of such a requirement very difficult. Discussions also concentrated on the licensing requirements of the insurance carrier issuing the endorsement. The Insurance Working Group will be meeting in June or July to address these and other issues. The next NACST plenary meeting is tentatively scheduled for July 24 and 25 in Mexico. ** InterAmSM Database Update New Mexican legislation online: • SECOFI decreed in March that certain vehicles built before 1992 may be imported into the northern U.S. border region. • Mexico and the U.S. agreed to share information regarding illicit transactions by financial institutions. • The Office of the Controller will sell properties in the states of Chiapas, Veracruz and San Luis Potosí. • The Social Development Secretariat announced nationwide hearings on housing issues. • The Treasury Secretariat announced a series of agreements regarding the minimum capital insurance companies, credit unions, bonding agencies and loan companies must have. • The National Commission on Minimum Wages increased the minimum wage in Mexico effective January 1, 1995. • New: Weekly government procurement listings. ALSO: • SECOFI continues investigation into dumping case on hot rolled coil imports. • Public forums for economic plans scheduled. • New foreign trade tax rules. • Health department has set standards for the control of produce, pests, prevention and control of cholera, and pharmaceuticals. • Rates have been established for the purchase and sale of gasoline. • Fiscal Codes amended. • Electricity rates altered. • SECOFI delays insignia rules 150 days. • Tourism bids being accepted by the Mexican Tourism Ministry. The NLCIFT's InterAmTM database is currently the only full-text source of Mexican trade and investment laws and regulations available online in North America. InterAmTM will be accessible on the Internet in approximately six weeks. To subscribe to InterAmTM, please contact George Arden at 1-800-LAW FIND. ** Bench Book in Progress The NLCIFT, along with the Arizona-Sonora Task Force, is in the process of developing a bench book covering all aspects of Mexican Civil Law. This book should be beneficial to judges and practitioners in both Mexico and the United States who may have requests for discoveries and/or depositions in their neighboring country. For more information on this project, please contact Anna Torriente at the NCLIFT. ** Real Estate Financing Committee The Real Estate Finance Committee met on April 21 to review progress on two fronts. First, the Committee received a report from Jaime Gibbons on the progress of groups within Mexico working on the passage of draft legislation for the licensing of real estate brokers. The committee discussed the ramifications of state versus federal legislation in terms of its impact on the industry and the effectiveness of the legislation for parties to real estate transactions. Second, the Committee reviewed progress on secured financing mechanisms in Mexico. Lic. Dennis Peyton gave an overview of his experiences in real estate financing and the various techniques utilized to finance real estate in Baja, California over the last several years. The Committee resolved to undertake a comparative study of real estate financing in Mexico and the U.S., and will meet again in about 6 weeks. For more information, please contact Vince Russo at the NLCIFT. ** Indian Law Dr. Boris Kozolchyk and John F. Molloy, co-editors of the book U.S. Law of Trade and Investment, announced this week that Prof. Robert Hershey of the University of Arizona College of Law has agreed to contribute a chapter on Indian Law. "Because of the scattering of Indian reservations throughout this country, and the possibility that those coming to this country to do business may come into contact with them, it is our opinion that our book should contain some Indian law," said Dr. Kozolchyk. ** Upcoming NLCIFT Participation Dr. Boris Kozolchyk, Esq., President and Director of the NLCIFT, will be traveling to Vienna, Austria this month to serve as a U.S. delegate at the United Nations Commission for International Trade Law meeting, where they will finalize an approved draft treaty on bank guarantees and standard letters of credit. Dr. Kozolchyk, along with some of NLCIFT's graduate students, will also meet with the Anti-Trust Commissioner of Mexico, Lionel Perez-nieto, to establish a training program between the NLCIFT and the U.S./Sonoran College of Law. From there, Dr. Kozolchyk will travel to Mexico City to meet with the Mexican Bankers' Association in hopes of establishing a committee for the drafting of unified rules on standby letters of credit and for uniform banking documentation procedures. The NLCIFT will have an exhibition booth at the following events: • Arizona State Bar 62nd Annual Convention June 14 - 17, Phoenician Resort, Scottsdale, Arizona NLCIFT representatives will attend the following: • American Association of Law Libraries 88th Annual Meeting July 16 - 19, Pittsburgh, Pennsylvania • International Commercial Arbitration Training May 6 - 7, The Centre for Conciliation and Arbitration, St. Mary's School of Law, San Antonio, Texas. • A Regional Trade Town Hall: Partnerships for Progress May 31 - June 3, Albuquerque, New Mexico ** Recent Publications: • Twin Plant News "Free Trade in Hazardous Waste", April, 1995, p.32. David Eaton, a researcher at the NLCIFT discusses the recycling of hazardous waste in Mexico, its benefits, costs and economic integration under NAFTA. ** Reference Texts Suggestions by Francisco Avalos, International Collection Librarian, University of Arizona College of Law Library • NAFTA, Summary and Analysis by Paul, Hastings, Janofsky & Walker. • NAFTA: Protecting and Enforcing Intellectual Property Rights in North America by Fran Smallson. • Navigating NAFTA: A Concise User's Guide to the North American Free Trade Agreement by Barry Appleton. • NAFTA: Managing the Cultural Differences by Jeffrey D. Abbott. ** UofA Masters Director to Speak on Free Trade Law Professor David Gantz, Director of the Masters Program at the University of Arizona, will be teaching a three-week course in free trade law in Guatemala City, Guatemala, in June 1995. Anna Torriente, Esq., Associate Director for Research at the NLCIFT, will be assisting Professor Gantz and teaching a portion of the course. The course will include the NAFTA, GATT/World Trade Organization (WTO), general principles of trade and foreign investment in the context of the NAFTA and the relationship of the NAFTA to the CAEM. ** Press Coverage An article in the March issue of Mexico Business, entitled "Accessing @Mexico.com" states that NLCIFT's InterAmTM is the "best of the bunch" when it comes to databases that feature Mexican statutes, trade and investment laws, regulations, decrees, amendments and technical standards. ** The NCLIFT Would Like to Thank... the United States-Mexico Chamber of Commerce for the half-page ad in the April issue of "The Chamber News". ** Graduation LL.M. Candidates The following L.L.M. candidates will be graduating from The University of Arizona College of Law on Saturday, May 13: Rocio Algora, Andrés Félix, Felipe García, Juan Enrique Garcia, Lisa LeGrand, Jesús Madrazo, Christina Moeckel, Rebeca Pérez and Juan Manuel Trujillo. Congratulations! ** Volunteer and Intern Activities InterAm staff member and NLCIFT volunteer research consultant, Ramón Guerrero, has been working with Foreign Collections Law Librarian Francisco Avalos to a develop cooperative exchange agreement between government and private educational institutions throughout Latin America. Lic. Guerrero, who is currently auditing classes in the Masters in International Trade Program, played a central role in helping the NLCIFT gain access to Mexico's Diario Oficial. ** INTERAM DATABASE - MEXICO NEW LEGISLATION •Mexico Revises Taxes on Foreign Trade (MX.09.1554;MX.09.1555) •Customs Resolution Issued for the Mex.-Col.-Ven. Treaty (MX.09.1556) •Bolivia, Costa Rica, Mexico Announce Customs Regulations (MX.09.1557;MX.09.1558) •Mexican Tax Pact signed by Britain, Northern Ireland, and South Korea (MX.20.1524;MX.20.1525) •Agriculture Secretaría sets Standards for Residues found in Animal Tissues (MX.01.1560; MX.01.1561) •Emission Tests Set for Trucks (MX.21.1548) ** INTERAM Database & Bulletin New Subscribers include: • Southwick Instruments - Georgia • Chaffe & McCall - Louisiana • Holme Roberts Owen - Minnesota • Ford & Nelson, PC - Texas For information or a free trial subscription, please contact George Arden at 1-800-LAW-FIND. ** NLCIFT wishes to extend a special thanks to the law firm Munger, Tolles & Olson for their pro bono work for the past two years. We are very grateful! ** New Member •Bill F. Kryzda, Esq., Goodrich, Riquelme & Asociados, A.C.