Wal Mart Mexico going green

Recently Wal Mart Mexico (WALMEX) announced that it would be switching all of its stores to wind power by 2025.  This includes all of the units of the Wal Mart group including Superama grocery stores, Wal Mart, Suburbia, Bodegas, Sam's Club, Vips, El Porton.

The stores and restaurants will be powered by the Wind Farm 'I Lamatalaventosa Oaxaca, in the state of Oaxaca.  The farm has 27 2.5 MW turbines and will reduce CO2 emissions by 137 tons, which is the equivalent of removing 21,000 vehicles from the roads.

Weekly Currency Update: Peso

Today the Mexican Peso is trading at $12.77 MXN = $1 USD.  This has been the worst month since February 2010 for the peso.   
The events that have affected the peso's value this week include:

• Weaker than expected US economic data (as they say, when the US gets a cold, Mexico gets pneumonia!)
• The report that China is reviewing its Euro bond holdings
• The European debt crisis

In a related note, Hacienda (Mexico's IRS) has placed a restriction on dollar cash deposits in Mexico.  This has created a parallel black market for dollars, which can pose a huge threat to the economy.  The restriction was put in place in an effort to curb money laundering.
 

The Importance of Learning the Language

When people are considering making the move to Mexico from a foreign country, one of the first questions they ask me is "Do I need to learn the language?"  My answer is always the same - a resounding "YES!"  While it is possible to live in Mexico and speak only English (especially if you live in an expat hotspot like Los Cabos or San Miguel de Allende), I don't recommend it. 

Learning the language increases your ability to connect with a whole new set of people, understand what's going on around you, and gain a deeper understanding of the culture.  It is especially important in business - when people see that you are trying to learn their language they tend to be more helpful and appreciative. 

If you are interested in learning Spanish, I highly recommend checking out the Rocket Language online course series.  They even offer a sample 6 day course for free - so you've got nothing to lose and everything to gain!!!

Setting Up a Business in Mexico: What is a FIEL?

Part of the process of setting up your business in Mexico involves getting yourself registered with Hacienda (Mexico's version of the Internal Revenue Service).  Once you obtain your RFC and your CURP, you will need to get a FIEL. 

What is a FIEL?

FIEL stands for Firma Electronica Advanzada.  The Firma Electronica is a fairly recent addition to the Hacienda requirements. 

The FIEL is based on PKI (Public Key Infrastructure) which means that 2 codes or keys are used for transmitting encrypted messages:

1.  Public key- available to all users via Internet
2.  Private key- only known by the user

The purpose of the FIEL is to allow taxpayers to access their information  and make transactions online in a safe, private manner. 

Some of the transactions available using your FIEL:
Customs documentation
Fiscal documents

For more information (in Spanish) visit: 
http://www.sat.gob.mx/sitio_internet/e_sat/tu_firma/default.asp


The FIEL is very easy to get.  Make an appointment at Hacienda and you will get your FIEL with a period of minutes (no more than an hour depending on how busy they are)! 

Fiesta! Fiesta! Ford Fiesta 2011 to begin production in Mexico plant

Ford has chosen Cuatitlan Izcalli, Estado de Mexico (State of Mexico - on the outskirts of Mexico City) as the location to produce its new Ford Fiesta 2011.  The plant will create over 2,300 direct jobs and 6,000 indirect jobs.  Some of the new Ford plant employees have undergone an application process that has lasted over a year.   

The plant was previously operational, but was shut down and revamped in preparation for the new Ford launch.  Almost 70% of the parts used in the new Ford Fiesta will be purchased through local suppliers, which is a great boon for the local economy.  This means Ford will purchase over $6 billion USD of parts a year in Mexico!!!

Mexican Shrimp Imports - Change of Plans?

Recently, the United States placed a ban against Mexican shrimp imports.  The reason behind the ban?  The United States claims that Mexican fishermen do not have the proper safety measures in place to protect sea turtles. 

In a twist of fate, on May 12 the Deepwater Horizon rig (British Petroleum) exploded, leading to one of the biggest oil spills in history.  Scientists say that the leak could be as large as 95,000 barrels of oil a day. 

Mexico is now considering taking its case to the World Trade Organization in order to begin exporting Mexican shrimp into US territory once again.  Mexico argues that they do have the proper methods in place and strongly defend their shrimping practices. 

It is still too early to tell the effects of the BP Oil Spill, but shrimp farmers in Mississippi and Louisiana are already preparing for the worst and the first round of lawsuits are being filed.  Will the United States change its stance because of recent events?  We can only wait and see...but if there was a shrimp shortage in the United States before the oil spill ocurred, things will only get much worse if the Mexican shrimp ban continues. 

Unemployment in Mexico remains low despite financial woes

If you look at the recent unemployment rates of countries around the world during this financial crisis, something stands out.  Mexico, despite all its ups and downs, has a surprisingly low unemployment rate of 4.9% (tied with Austria!!). 

Unemployment rates around the world:

1. South Korea - 3.8%
2. Netherlands - 4.1%
3. Austria - 4.9%
3. Mexico - 4.9%

Which country had the highest levels of unemployment?  Spain at 19.1%.

The main reason that Mexico has such a low unemployment rate is because of the informal economy.  Nearly 28.6% of the Mexican population is working in the informal market.  This means no benefits, no government intervention, and no taxes.