NEWSLETTER - Latin American New Zealand Business Council

PO Box 33094
Takapuna
Auckland
New Zealand
info@lanzbc.co.nz
NEWSLETTER JUNE 2012
INDEX
Reception Dr Rt Hon
Lockwood Smith
Chile, Peru, Colombia,
Mexico In Alliance
Doing Business Latin
America
Buque Escuela La
‘Esmeralda’ Visited
Wellington
Speaker's Reception for LANZBC
Dreamliner Touches Down
in Auckland
Invest Chile
Upcoming Events
Mexican Presidential
Elections
Bilateral Relation
StartUp Chile
Rio+20
Capriles Rallies
Venezuelans To Challenge
Chávez
LatAm Sports
General Secretariat of
Unasur
G2012 Mexico
NZTE Mexico Profile
Opinions expressed by the editor & contributors to the Newsletter
are not necessarily those of the LANZBC
Brazil, Latin America Hit By
Asia, Europe Crisis
Page 1 of 18

RECEPTION HOSTED FOR LANZBC BY
DR THE RT HON LOCKWOOD SMITH
CHILE, PERU,
COLOMBIA, MEXICO
IN ALLIANCE
PARLIAMENT HOUSE - 13 JUNE 2012
HE Ambassador Isauro Torres, HE Ambassador Renate Stille, Dr The Rt Hon Lockwood Smith,
HE Ambassador Leonora Rueda, HE Ambassador Fernando Escalona,
HE Ambassador Maria del Carmen Herrera & Thomas Manning
Dr The Rt Hon Lockwood Smith who led a New Zealand Parliamentary
Delegation to Brazil, Argentina, Uruguay and Chile in 2011 to strength
relations between these regions and New Zealand addressed LANZBC
members, the Latin American ambassadors and invited guests on 13 June in
the Speaker’s Lounge at Parliament.
Dr Smith spoke about the potential for business between New Zealand and
the countries he visited and specifically mentioned education, technology and
agriculture as sectors with a lot of potential for NZ exporters and service
providers.
Some New Zealand companies already have started doing business in Latin
America such as Fonterra which had bought production assets in Chile &
Brazil to improve and increase their market share in those countries.
A Primary Sector Cooperation Agreement with Chile was signed in May 2004.
New Zealand Trade and Enterprise’s pastoral farming project provides
additional focus in the agri-tech and food sectors. New Zealand also provides
training for farm workers and managers from Chile.
Dr Smith reiterated that people from Latin America are very welcome in New
Zealand to work in the agricultural, horticultural and other sectors in New
Zealand and he emphasised the importance of maintain the working holiday
visa programmes with Latin America.
Dr Smith concluded by saying he hoped to go back to Latin America again
soon and that he will have the opportunity to visit other countries such as
Peru, Colombia and Mexico.
“Latin America is emerging as a fast-growing region with great potential for
New Zealand. I am confident that the Speaker’s Tour last year provided
valuable impetus to improving our relationships there,” Dr Smith said.
Chile, Peru, Colombia
and Mexico have signed
an accord creating the
Pacific Alliance to more
deeply integrate their
economies, and develop
new trade links with the
Asia-Pacific region.
"From the heights of
Paranal, in the most arid
desert in the world and
under the clearest of
skies, we have signed a
pact officially giving birth
to the Pacific Alliance,"
Chilean President
Sebastian Pinera said.
He was speaking at a
presidential summit near
the giant telescopes of
the Atacama desert to
launch the new alliance,
attended also by
Mexico's Felipe
Calderon, Peru's Ollanta
Humala and Colombia's
Juan Manuel Santos, as
well as the presidents of
Costa Rica and Panama,
and others as observers.
The creation of the Latin
American bloc -- with a
total of 215 million
consumers and a
combined gross domestic
product of more than $2
trillion -- was proposed
last year in Lima.
Page 2 of 18

"In very little time, we
have succeeded in
moving forward rapidly,"
said host Pinera,
explaining that it would
bring about a "deep
integration" that will go
"far beyond free trade
and reach out to the
Asia-Pacific region."
Doing Business sheds light on how easy or difficult it is for a local
entrepreneur to open and run a small to medium-size business when
complying with relevant regulations. It measures and tracks changes in
regulations affecting 10 areas in the life cycle of a business: starting a
business, dealing with construction permits, getting electricity, registering
property, getting credit, protecting investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency.
How economies in Latin America rank on the ease of doing business:
"The Pacific Alliance's
economic potential is
significant," said Mexico's
Calderon, noting that the
new alliance groups
together Latin America's
fastest growing
economies such as Peru
and Chile.
Colombia's Santos called
it the "most important
integration process in
Latin America."
"There are no
incompatibilities or
exclusion vis-a-vis other
integration efforts. We
are against nobody but
rather in favor of even
greater integration," he
said.
Santos was echoed by
Peru's Humala who
insisted that the new
alliance "doesn't look to
displace other
groupings," such as the
Andean Community, or
the Union of South
American Nations.
Where do the region’s economies stand today? How easy is it for
entrepreneurs in economies in Latin America to start a business? The
global rankings of these economies on the ease of starting a business
suggest an answer. The average ranking of the region and comparator
regions provide a useful benchmark.
Costa Rican President
Laura Chinchilla, who
attended as an observer
alongside Canada's
foreign minister and
Spain's King Juan
Carlos, formally asked to
join the alliance.
Page 3 of 18

BUQUE ESCUELA
LA ‘ESMERALDA’
VISITS
WELLINGTON
How economies in Latin America rank on the strength of investor
protection index: How strong are investor protections in economies in
Latin America? The global rankings of these economies on the strength of
investor protection index suggest an answer. While the indicator does not
measure all aspects related to the protection of minority investors, a higher
ranking does indicate that an economy’s regulations offer stronger investor
protections against self-dealing in the areas measured.
The Chilean Navy
Training Shipt
“Esmeralda” is making
her 57th training cruise
around the world and
Wellington City was the
first foreign port of call on
the cruise.
The steel-hulled, fourmasted
barquentine tall
ship, which is the longest
and second tallest sailing
ship in the world, visited
Wellington as part of a
260-day, 30,000 nautical
mile journey to visit ten
countries. It's the 17th
time the ship has been in
New Zealand.
The unit was received by
the Ambassador of Chile
in New Zealand, HE
Isauro Torres Negri, by
the Vice Chief of Defence
Force Rear Admiral Jack
Steer and the Defence
Attaché, of the Embassy
of Chile in Australia,
Captain Ship Marcelo
Urbina of Puyo.
For more information
http://www.doingbusiness.org/~/media/FPDKM/Doing%20Business/Documents/Profiles/Regional/DB2012/DB12-
Latin-America.pdf
During the ship’s time in
Welligton courtesy visits
were made by Wellington
Police Superintendant
Gary Knowles, the Mayor
of Wellington Her
Worship Celia Wade-
Brown and Police
Commissioner Peter
Marshall.
Page 4 of 18

Among various activities
was the Presentation
Regiment parade through
the streets of the
Wellington for a wreathlaying
ceremony at the
"National War Memorial"
in addition to
performance by the
ship’s band and a tasting
of Chilean wine & foods
called ‘Flavours of Chile’.
Boeing's 787-8 Dreamliner, slated to open Air New Zealand routes into
Latin America, touched down in Auckland this 29th of May, to offer Air New
Zealand passengers and crew a look at the aircraft's revolutionary interior
and the future of flying. Boeing's regional director of product marketing,
Tadashi Mabee, said the tour was intended to show off the plane to
potential customers and airlines that had already ordered it. "I think the nice
thing is that the biggest hurdles are behind us. The main issues that we had
were with the production system and trying something new. So we could
have done that better, but we're past that and getting a healthier system."
The 250-seat Dreamliner is hailed as a game changer - it is the first
passenger jet with an all-carbon fibre composite fuselage, which is lighter
and stronger than the traditional aluminium skin. Apart from making it more
fuel efficient, the increased strength means the windows can be bigger and
the air pressure inside the cabin can be higher and more humid, improving
passenger comfort and reducing the effects of jetlag.
"This really is the benchmark of commercial aviation - now the newest, most
modern commercial aircraft for the 21st century," said aviation enthusiast
Peter Clark.
The 787 has an environmental advantage over any other jet its size, the
fuselage is made of carbon composite which is lighter than traditional
aluminium, burning 20% less fuel than 747s and 767s it will replace, while
being able to carry 50% more cargo.
The 787 has an environmental advantage over any other jet its size, as it
uses 20% less fuel while being able to carry 50% more cargo.
Air New Zealand's programme director, Kerry Reeves, was inspecting cabin
systems such as lighting, galleys and work areas as well as getting a feel
for the passenger experience. The airline has voiced frustration at delays
for its larger nine-series planes, but Reeves said he was impressed by the
flight. "It seems to me to live up to expectations. This has been a really
good opportunity for Air New Zealand to experience the systems and check
out operational assumptions.
Decisions would be made around September on the configuration of cabins
for its planes, and the airline was wary of risking passenger comfort by
packing too many in.
OVER 60
COMPANIES
PARTICIPED IN
INVESTCHILE'S
FORUM FOR AN
ESTIMATED
INVESTMENT OF
US$ 132 MILLION
With over US$ 30 billion
in production and US$ 12
billion in exports, Chile is
a relevant player in the
world food scenario.
Under this premise, the
4th International Forum
of investment in the food
industry was carried out
last June the 6th,
organized by InvestChile.
The event gathered 61
companies from 16
countries such as
Germany, Australia,
Brazil, China, South
Korea, United States,
Spain, France, Mexico,
New Zeeland and South
Africa, among others;
which represent a
portfolio of 35 projects
and an estimate
investment amount of
US$ 132.45 million.
During the the
International Forum,
there 196 bilateral
meetings.
Page 5 of 18

UPCOMING 2012 LANZBC EVENTS
48 companies were
searching for investment
partners and there were
319 site visits throughout
the countries different
regions. Among the
places visited, the
regions of Arica and
Parinacota, Antofagasta,
Coquimbo, Valparaíso,
Maule, Biobío, La
Araucanía, Los Ríos and
Los Lagos, stand out.
Through these
participating companies,
we were able to
determine which were
the most interesting
subsectors for the
installation of these
campaigns in Chile.
These are: the ancillary
industry, fruit agricultural
industry, applied
biotechnology,
elaborated foods, meat
and meat sub-products,
the salmon, olive, wine
and wine sub-products
industries.
InvestChile´s Food
Program, achieved over
70 million dollars in
domestic and foreign
investment in 2010, and
during this year has
already materialized 4
projects, with an
investment amount over
US$50 million.
The Food Industry
It represents 23 % of the
exports, 17% of the
employment and almost
10% of the Chilean GDP
and is one of the sectors
with most developing
potential in the country.
Chile is acknowledged
worldwide by the quality
of its wines, fresh fruits
and sea products, such
as Salmon, being the
second exporter
worldwide.
Page 6 of 18

Chile is a relevant player
in the world with
commercial agreements
with 58 countries and is
trading its products with
more than 150 countries.
In fact, it is the
continental leader in
fresh fruit exports and the
5th wine exporter
worldwide.
MEXICO’S PRESIDENTIAL RACE - The Wall Street Journal - 1st June
MEXICO CITY—Andrés Manuel López Obrador, the fiery leftist who refused
to recognize his defeat in Mexico's presidential race six years ago, has
surged into second place in opinion polls ahead of the July 1 general
election and is narrowing the gap with front-runner Enrique Peña Nieto.
A poll published Thursday by Reforma, Mexico's most influential daily
newspaper, showed Mr. López Obrador with 34% support compared with
38% support for Mr. Peña Nieto, of former ruling party PRI. Josefina
Vázquez Mota of the ruling National Action Party fell sharply to 23%.
Some analysts said the Reforma poll was an outlier, and cautioned that it
was too early to tell if a significant shift is taking place. Others said the
survey at least suggests an increasingly unpredictable race.
"López Obrador has the momentum right now," said Roy Campos, a pollster
with Mitofsky. Mr. Campos said he considered the Reforma poll an outlier,
but added that it could still be picking up on a trend. His conclusion: "Peña
Nieto is still the favorite, but López Obrador has a chance."
Its focus today is set on
the world trend of
consumers towards
foods that, besides from
their nutritional value,
provide benefits for the
physiological functions of
the human organism. It
has been discovered,
that many traditional food
products such as fruits
and vegetables, among
many others that Chile
produces, have beneficial
health components.
Neutraceutical foods, that
are beneficial for human
health, have been
generating changes in
the consumers’
consumption patterns,
especially in more
developed countries.
These changes are
promoted by large food
companies that owe their
growth to technological
developments, without
which they would have
been left behind in the
fast economic race
driven by globalization.
Due to the privileged
geographical nature of
Chile, under a
mediterranean weather,
in counter-season
compared to developed
markets, and the growing
need of global retail
companies that need to
have continuous
products 365 days of the
year, makes this program
a relevant actor for
Chile’s economic
development.
Page 7 of 18

The changing dynamic of the race is likely to cause jitters among Mexico's
business elites and foreign investors. Mr. Peña Nieto and Ms. Vázquez
Mota have both promised broad economic reforms such as opening up
Mexico's closed oil industry to private investment.
Mr. López Obrador's vision promises a more active state role in the
economy. His energy plan, by contrast, promises to keep oil in government
hands, create jobs by building as many as five refineries, and lowering
gasoline prices, a goal that some analysts say can only be done through
greater subsidies.
Mr. Peña Nieto seemed to be coasting to victory until a few weeks ago,
when university students began taking to the streets to protest against the
country's two big media companies, whom the students accuse of backing
the former state governor.
BILATERAL RELATION
Chile and Peru favor the
development of an agenda
based in constructive matters
within a joint vision for the future,
such as the scope of the
association to the Asia Pacific,
the Free Trade Agreement, and
the bilateral cooperation, among
others.
Chile and Peru are on the road of an intelligent relation, without deviating
from the integration and friendship direction that their bonds deserve. As
mentioned by H.E. Dr. Michelle Bachelet, President of the Republic of
Chile, in her address to the nation on May 28, 2008: ‘What brings us
together is so much more than what separates us. We look at the same
ocean and share the same yearning for a better standard of living for our
people’.
The entry into force, this year 2009, of the FTA between both nations will
make evident the Chile-Peru integrationist inclination anew. In this sense,
worth mentioning is that owing to the series of instruments signed in this
area (Economic Complementation Agreements (ACE 38), of Promotion
and Protection of Investments and Double Taxation), the bilateral
commercial relation has shown significant progress. Trade is liberalized in
an 82 percent and commercial exchange has tripled since the signature of
the ACE 38 in 1998, reaching during 2007 US$ 2,719.5 million. Likewise,
between January and August 2008, the bilateral commercial exchange
reached US$ 2,280.2 million, a 38 percent greater than what reached on
the same period in 2007 (US$ 1,648.8 million). Chile is Peru’s third trade
partner, only preceded by the United States and China, and constitutes its
main exporting market in Latin America.
Direct Chilean investments into Peru, with more than 320 projects in
progress, represent a 14 percent of the direct investments of Chile abroad,
rising to US $ 6,293 million to June 2008. Chile is the third country for
Peruvian investment after the United States and Spain. In 2007, Chilean
Investments in Peru reached a US$ 5,575 million and at the end of 2008,
these reached US $ 6,600 million.
Start-Up Chile is a
program created by the
Chilean Government,
executed by Corfo via
InnovaChile, that seeks
to attract early stage,
high-potential
entrepreneurs to
bootstrap their startups in
Chile, using it as a
platform to go global. The
end goal of the
accelerator program is to
convert Chile into the
definitive innovation and
entrepreneurial hub of
Latin America; this is a
mission shared by the
Government of Chile and
is a primary focus of the
Ministry of Economy.
In 2010, the program, at
that point just a pilot,
brought 22 startups from
14 countries to Chile,
providing them with
US$40,000 of equity-free
seed capital, and a
temporary 1-year visa to
develop their projects for
six months, along with
access to the most
potent social and capital
networks in the country.
These selected
entrepreneurs were
approved by an
admission process
conducted by Silicon
Valley experts and a
Chilean Innovation board
that focuses ardently on
global mindsets and
worldwide potential. Of
all required criteria, it is
essential that the chosen
entrepreneurs work in a
global mindset, believing
that the route to success
is via expansion not
isolation.
Page 8 of 18

Noteworthy is that Chile and Peru are part of APEC and the Forum of the
Pacific Latin American Pacific Arc, significant instances for the promotion
of the economic commercial relation between these and the Asia Pacific
region.
20 YEARS AFTER RIO 1992:
COMPANY INITIATIVES DO MAKE A DIFFERENCE
The 2012 United Nations Conference on Sustainable Development in Rio de
Janeiro is an opportunity to further intensify international dialogue on the
future of our planet. And there can be no mistake: achieving sustainable
development is a global challenge that we can master only by working
together across borders and stakeholder groups. At the same time, this
concerted effort must begin with individual initiatives. A look back at the
objectives set at the first Rio Summit in 1992 and at Henkel's track record
reveals that the company has taken its responsibilities to heart, shown
initiative and consistently followed a path to better sustainability.
The challenges of achieving sustainable development hand a special role to
members of the business community. Above all, globally operating
companies are in a strong position to make a real difference, but only if the
concept of balancing economic, environmental and social objectives actually
shapes their day-to-day actions. Many global players have accepted this
responsibility and implemented meaningful sustainability measures.
Long before the 1992 Earth Summit in Rio, officially titled the United Nations
Conference on Environment and Development (UNCED), Henkel had made
a practice of continuously taking steps to achieve greater sustainability. Way
back in the 1920s, for example, it became the first company to hire a safety
engineer to improve work conditions and occupational safety. In the late
1950s, Henkel was first to introduce regular ecological quality checks of
detergents and household cleaners. And in 1986, it became the first
company to introduce phosphate-free laundry detergents – only one example
of how Henkel has integrated the principles of sustainability into product
development.
Ahead of the 1992 Earth Summit, Henkel became one of the first companies
to sign the International Chamber of Commerce's Business Charter for
Sustainable Development in 1991. Also in 1991, former Henkel CEO Helmut
Sihler became a co-founder of a global business association dedicated solely
to sustainable development – the World Business Council for Sustainable
Development (WBCSD) – which has become today's leading business voice
on sustainability. A year later, the company backed up the commitment
expressed in these moves, by becoming one of the first in the world to
publish a report on its ecological impact, the Henkel Environment Report.
2010 acted as a pilot
phase that lead into the
2011 application
processes with the goal
to bring 300 startups to
Chile during the year,
with the end hope of
having 1,000
bootstrappers participate
in the program by the
culmination of 2014. The
first application process
of 2011 brought 87
startups to Chile from
over 30 countries, after
having received 330
applications– and, during
the second process
conducted in July of
2011, 650+ startups
applied, vying for 100
slots.
All of the Start-Up Chile
entrepreneurs are
measured during their
time in the program by
various indicators
including participation in
local events, presenting
workshops on their
particular expertise,
raising local or
international capital, and
contracting talent.
Start-Up Chile has
gained impressive
international recognition,
having been published in
Forbes, The Economist,
BusinessWeek, and
TechCrunch (among
many others) and has
inspired spinoffs around
the world such as Startup
America, Britain, Greece,
and Italy.
Start-Up Chile is fully
supported by the Chilean
Government with special
consideration of the
Ministry of Economy, the
Ministry of Foreign
Affairs, and the Ministry
of Internal Affairs.
Page 9 of 18

CAPRILES RALLIES VENEZUELANS TO CHALLENGE CHÁVEZ
Hundreds of thousands of
Venezuelans flooded
downtown Caracas on
Sunday to support opposition
candidate Henrique Capriles
in the biggest rally to date of
his campaign to unseat
cancer-stricken socialist
President Hugo Chávez.
The athletic 39-year-old walked and jogged 10 km (6.2 miles) in the
company of supporters to register his candidacy with electoral authorities,
burnishing his image of physical fitness in contrast to the convalescing
Chávez.
LATAM FAMOUS
SPORTSMEN
ARGENTINA
Lionel Messi
Capriles hopes to replace Chávez's state-driven socialism with a Brazilstyle
balance between free enterprise and social programs, and promises
an end to the sectarian polarization of Chávez's 13-year rule.
"On October 7th we will decide not between two men but between two
different ways of life," Capriles intoned from a stage set up before a plaza
jam-packed with sympathizers before entering the election's council.
"Today I'm the candidate because the people have decided, but on
October 7th I'll be the next president of all Venezuelans," said Capriles,
saying one million people had turned out.
During his speech he looked up to address a group of people in a nearby
government office tower that has been used to house Venezuelans who
lost homes in floods - a problem that plagued Chávez for months and
spurred a major home-building campaign.
Diego Armando Maradona
BOLIVIA
"You're going to get out of there and move into a home, God bless you and
your family," he shouted.
The event marked a shift toward high-profile rallies to galvanize supporters
after a months-long house-to-house tour of the OPEC nation in which he
sought to win over new sympathizers ahead of the Oct. 7 vote.
Marco Etcheverry
Marchers on Sunday swarmed the main avenues of Caracas, waving the
flag of the opposition coalition and chanting slogans alongside trucks
blasting Capriles' campaign pop jingle.
Some women sported T-shirts with the slogan "Future First Lady," a nod to
the good looks of the bachelor candidate, who has received many online
marriage proposals during his campaign.
"We are all proud of this candidate, he is a young man who has filled us
with vitality and energy," said Maria Luisa Botero, 47, a secretary who
marched while pushing her 87-year-old mother in a wheelchair. "Even my
mom wanted to come out."
Maria Fernanda Alvarez
Page 10 of 18

Should he win, Capriles would be Venezuela's youngest president.
BRAZIL
The registration is largely a formality, since opposition sympathizers
already chose Capriles as their candidate in opposition primaries in
February.
VENEZUELA TAKES ON THE
GENERAL SECRETARIAT OF UNASUR
EL UNIVERSAL
Monday June 11, 2012
Pelé
Kaká
Colombian Foreign Minister Maria Emma Mejia; President of Colombia, Juan Manuel Santos;
President of Paraguay Fernando Lugo & the new General Secretary of Unasur,
Alí Rodríguez Araque.
Colombian Foreign Minister María Emma Mejía is handing over the
General Secretariat of Unasur to Venezuelan Alí Rodríguez Araque. The
presidents of Colombia, Juan Manuel Santos, and Paraguay, Fernando
Lugo, are to participate in the ceremony, which is taking place after noon
on Monday at the Colombian government headquarters of Casa de Nariño.
The Union of South American Nations (Unasur) will be from Monday in the
hands of Venezuelan former Minister Alí Rodríguez, to whom Colombian
Foreign Minister María Emma Mejía will hand over the General Secretariat
of the body, at a special meeting of foreign ministers from 12 countries, to
be held in Bogotá.
CHILE
Iván Zamorano
The presidents of Colombia, Juan Manuel Santos, and Paraguay,
Fernando Lugo, are to participate in the ceremony, which is expected to
take place after noon, at the Colombian government headquarters of Casa
de Nariño, EFE reported.
Rodriguez will be the third secretary general in the history of the Union, an
integration forum created in May 2008 by the 12 countries of the region
and legally established since March 2011. The first to hold the office was
former Argentine President Néstor Kirchner, who served from May to
October 2010, when he died.
Santiago González
Unasur has been instrumental in the relations between Colombia and
Venezuela.
Page 11 of 18

G20 WORKING GROUP
CONCLUDES PREPARATORY MEETING FOR JUNE 18-19
LEADERS' SUMMIT IN LOS CABOS, MEXICO
COLOMBIA
The group will work to ensure that
their recommendations have an
impact on reducing poverty and
promoting sustainable growth in
less-developed countries.
The G20 Development Working
Group (DWG) met for the third
time under the Mexican
presidency in Los Cabos, Baja
California Sur, on May 3-5.
The meeting was attended by representatives from the G20 member
countries, the invited countries (Chile, Colombia, Spain, Sweden, Benin
and Cambodia) and international organizations such as the United Nations,
World Bank (WB), the Asian Development Bank (ADB), the Economic
Community of West African States (ECOWAS), and the Organization for
Economic Cooperation and Development (OECD).
During 12 working sessions, the DWG reviewed the work done over the
course of this year and drafted a report that will be presented by the
Sherpas to the G20 leaders at the Los Cabos Summit in June.
Regarding inclusive green growth, the group decided on a set of
instruments that will assist the developing countries, particularly the lowerincome
ones, to implement public policies that lead to sustainable
development. It also laid the foundation for a program that will provide
better access to private capital to finance "green" policies.
In food security, progress was made on important initiatives such as ways
to encourage private sector investment to benefit the most vulnerable
countries. It was also decided to consider implementing public policies to
improve the productivity of small farmers in developing countries.
On the issue of infrastructure, a Mexican initiative on a set of best practices
in developing sustainable urban mass transport was approved.
El Pibe Valderrama
Ceciliai Baena
CUBA
Javier Sotomayor Sanabria
In other areas, the group agreed on platforms for sharing knowledge on
tropical agriculture, social protection programs and job skills. These
platforms will enable countries like Mexico to share, easily and in a timely
fashion, their experiences and successful programs with less-developed
countries worldwide.
The group held two substantive dialogues with the private sector and civil
society representatives, focusing on issues of mutual interest in
development. In the first meeting, Mexican businessman Alejandro
Ramirez, president of the Business20 (B20) Organizing Committee,
presented the recommendations of the B20 on green growth and food
security, which led to an exchange of ideas on the contributions of the
global business sector to the development agenda. At the second meeting,
representatives from the Bill and Melinda Gates foundations, Mary
Robinson and ONE Campaign shared their contributions to the work of the
G20.
Yuriorkis Gamboa Toledano
Page 12 of 18

ECUADOR
Nicolás Lapentti
June’s column features Mexico with excerpts courtesy of “Explore Export
Markets” section of the NZTE website
Holger Quiñonez
Mexico and New Zealand
The United Mexican States (Mexico) is the fourteenth largest country by
area and the eleventh most populated nation in the world. It is also the
fourteenth largest economy and is sometimes considered the “fifth BRIC”.
As an emerging economy with considerable natural resources and a
growing middle class, Mexico provides much opportunity for New Zealand
trade and investment.
Mexico is New Zealand’s 24th largest export market overall and 16th
largest export market for dairy products. Dairy products account for around
62 percent of New Zealand’s exports to the Mexico. Other key exports
include albumin, meat, and machinery. Two way trade with Mexico
exceeded NZ$597 million for the year ended December 2010. New
Zealand’s main imports from Mexico include electronic communication
equipment, computer components and malt beer.
EL SALVADOR
Rosemary Casals
Economy
Mexico is the second largest economy in Latin America and belongs to the
trillion dollar group of countries. It is a country with a combination of
modern and outdated industry and agriculture practices and is dominated
by the private sector. Mexico has a major advantage of being in a free
trade agreement with the world’s largest and richest consumer, its
neighbour the United States. The downside is that Mexico has become
hugely dependent on the American economy and is significantly affected
by its highs and lows.
Carlos Hernández
In 2011, a recovery in American manufacturing gave a boost to Mexico’s
economy in terms of jobs, exports and domestic consumption. Mexico is
currently looking for opportunities to sell more goods in Latin America and
Asia to reduce its dependence on the United States, which currently buys
80 percent of their exports.
Page 13 of 18

Investment and Foreign Trade
MEXICO
Mexico is consistently a major recipient of Foreign Direct Investment (FDI),
even amongst the major emerging economies of the world. In 2010, FDI
into Mexico was US$17.7 billion. The sectors that attracted the most
investment were manufacturing (accounting for 60 percent) and the
financial sector (28 percent). The water, electricity, agriculture and
construction sectors attracted the lowest amount of FDI. Major investors
include companies from the Netherlands and the United States.
The Mexican states receiving the most FDI are the Distrito Federal (federal
district of Mexico City), with US$6.9 billion, followed by Nuevo León,
Chihuahua, Jalisco, and Estado de México (these are states with high
added value activities and are dependant heavily on foreign investment).
Over the last ten years, Distrito Federal and Nuevo León combined have
received 67 percent of total FDI.
Oscar de la Hoya
Political
Mexico is a federal republic of 31 states which operate under a centralized
form of government. The president is elected for a six year term and
controls education, national security and national industries. Congress
comprises of two chambers, the upper chamber and the lower chamber:
The upper chamber called the Senate has 128 seats that are
elected for six year terms. 96 are elected by popular vote and 32
are allocated based on proportional representation.
The lower house called Chamber of Deputies has 500 seats that
are elected for three year terms. 300 are elected by popular vote
and 200 seats are allocated by proportional representation.
Hugo Sanchez
NICARAGUA
Imports and exports
Mexico top ten imports 2010 us$ million
Electrical and electronic equipment 71.86
Machinery 50.61
Vehicles 29.08
Mineral fuels 24.07
Plastics 17.51
Optical, photo, technical and medical apparatus 10.72
Organic chemicals 7.96
Articles of iron and steel 6.86
Iron steel 7.51
Paper and paperboard particles 4.72
Total imports 312.70
José Alfaro
Devern Hansack
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Mexico top ten exports 2010 us$ million
Electrical and electronic equipment 71.70
Vehicles other than railways 51.77
Machinery, nuclear reactors and boilers 41.62
Mineral fuels 40.98
Optical, photo, technical, medical, etc apparatus 10.18
Pearls, precious stones, metals and coins 9.21
Plastics 5.70
Furniture, lighting, signs, prefabricated buildings 5.34
Edible vegetables and certain roots and tubers 4.30
Articles of iron and steel 3.65
Total exports 298.88
PANAMA
Roberto Duran
To Read the full NZTE Mexico Market Profile please Click Here
BRAZIL, LATIN AMERICA HIT BY ASIA, EUROPE CRISIS
RIO DE JANEIRO (AP) — For more than a
decade, Brazil has been one of the
developing world's great hopes, outpacing
the growth of Western Europe and the U.S.
Many even predicted it would soon
become an economic superpower.
Mariano Rivera
PARAGUAY
Now, as the world economy teeters, Brazil is looking less like a global golden
child and more like a Latin American laggard.
Prices for exported commodities such as iron ore and soybeans are drooping
due to concerns over Chinese growth. Economic turmoil in Europe is cutting
into demand for manufactured goods such as aircraft. Meanwhile, Brazil's stillstrong
currency makes its exports less competitive. Investors are pulling
billions of dollars out of Brazil and other developing countries.
For Brazilians, government measures to halt the slowdown are bringing
momentary perks such as cheaper credit and lower taxes, but analysts
generally believe the big boom is past.
Victor Pecci
Projections by the International Monetary Fund indicate that every major Latin
American economy, save Paraguay, is likely to outpace Brazil this year.
Shearing said Brazil's economy is growing slower than its neighbors for a
number of reasons, but that in general the country historically has been "more
sensitive to global economic gyrations" due to structural factors such as a
stronger dependence on money flowing in from foreign investors to finance
spending, flows that quickly reverse in times of uncertainty.
Brazil's economy, Shearing added, also is more broadly linked to China's than
other Latin American nations, so the slowdown in Chinese growth and that
nation's demand for commodities hits Brazil harder than its neighbors.
Jose Luis Chilavert
Page 15 of 18

Analysts do believe the country will continue to grow, albeit at lower levels.
"This is a cyclical response," said William R. Cline, senior fellow at the
Peterson Institute for International Economics in Washington. "The general
expectation is that growth will begin to revive and will be at reasonable levels
for the next few years."
PERU
Brazilian President Dilma Rousseff is ramping up bullish rhetoric. The straighttalking
technocrat recently stepped out of character to do a little cheerleading
about Brazil's ability to weather the global crisis.
"I can assure you, Brazil is 100 percent, 200 percent, 300 percent ready,"
Rousseff said.
In 2010, Brazil's economy expanded by 7.5 percent, but it only managed 2.7
percent growth in 2011, out of league with fellow BRICS nations, which
managed to grow by 4.3 percent to 9 percent that year.
Teofilo Cubillas
Brazil's target of 4.5 percent growth this year looks unlikely to analysts, who
are betting expansion will end up closer to 3 percent. On top of that, the
outflow of $2.59 billion in foreign investment in May was the biggest since the
outbreak of the 2008 global crisis, reversing an inflow of $5.99 billion just the
month before.
Brazil's success before the current crisis had inspired imitation by Latin
American countries such as Peru and Mexico, which adopted a more
conservative fiscal approach and amassed enough foreign reserves and
flexibility to likely ride out the storm, Shearing said. Brazil's international
reserves ballooned from $38 billion in 2002 to $240 billion by the end of the
2009, helping the country survive the 2008 global credit crunch without much
damage. Now, Brazil is even better prepared than it was in 2008, Rousseff
said, with some $370 billion in international reserves.
Gabriela Pérez del Solar
URUGUAY
Oil reserves have helped some countries resist global headwinds, as crude
prices remain high despite financial woes. But most of Brazil's vast, recently
discovered oil reserves are still years from production.
Countries that have built much of their economies around exporting
commodities to China are vulnerable, and several of them have prepared
themselves for the eventual commodities downturn.
So far, Brazil has responded to the slowdown with measures such as reducing
its benchmark interest rate and taking measures to weaken the Brazilian real,
which helps exporters.
Diego Forlan
Finance Minister Guido Mantega has also announced measures to boost
domestic consumption: targeted tax cuts on Brazil-made products, interest rate
reductions and an extension in the time allowed to pay back loans. The
measures will make local cars about 10 percent cheaper, and reduce taxes on
financial transactions. These measures have had some immediate impact.
Car dealerships such as Euro Barra in Rio de Janeiro saw sales of their locally
made Fiats shoot up by 40 percent in May, with lines stretching out the door as
consumers came in hoping for a deal and an easier time paying back their
loans.
Abel Hernández
Page 16 of 18

Their enthusiasm didn't last long, said Euro Barra general manager Antonio
Carlos Maciel Junior.
VENEZUELA
Within two weeks, movement in the dealership was back to normal. That's
because it's still hard to qualify for a car loan in Brazil, he said. Buyers have to
put down half a new car's total cost to benefit from the lower rates. Others still
pay 10 percent to 12 percent interest a year, he said.
"The government is going in the right direction, stimulating sales," said Maciel
Junior. "But the banks are still hesitant. The government took steps on this that
the banks haven't followed. They need to relax rules around lending as well,
make it easier for people to borrow."
Taking advantage of her high approval ratings, Rousseff is also pushing
through public pension reforms that had been unpalatable to her
predecessors, said Joao Augusto Castro Neves, an analyst with the Eurasia
Group consultancy
Wilson Ramos
Even as the world warily watches Brazil and the rest of Latin America,
Rousseff says her country has indeed turned a corner and is not about to go
back to the bad old days of hyperinflation and economic meltdowns.
PHOTOS FROM THE SPEAKER'S RECEPTION FOR LANZBC
Jose Manuel Rey
Thomas Manning, Dr The Rt Hon Lockwood Smith, Heather Ward, HE Mrs Renate Stille
Clare Callow, Barry Brook, Ian Troughton, HE Mr Isauro Torres, Thomas Manning &
Dr The Rt Hon Lockwood Smith
Page 17 of 18

Ian Troughton, Peter Cullen, Heather Ward & HE Mr Fernando Escalona
HE Mr Isauro Torres, HE Mrs Renate Stille, Mrs Clare Callow, Dr The Rt Hon Lockwood Smith,
HE Doña Leonora Rueda, HE Mr Fernando Escalona & HE Sra. Maria del Carmen Herrera Caseiro
Blair Smith, Tim Robertson, Ken Geard & Miles Fleming
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