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Viewing cable 07MEXICO59, MEXICO ECONOMIC NOTES, DECEMBER 28, 2006 - JANUARY

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Reference ID Created Released Classification Origin
07MEXICO59 2007-01-05 19:53 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Mexico
VZCZCXRO0921
PP RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #0059/01 0051953
ZNR UUUUU ZZH
P 051953Z JAN 07
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC PRIORITY 4799
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUEHC/DEPT OF LABOR WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHMFIUU/CDR USSOUTHCOM MIAMI FL PRIORITY
RHMFIUU/CDR USNORTHCOM PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
UNCLAS SECTION 01 OF 02 MEXICO 000059 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR A/S SHANNON 
STATE FOR WHA/MEX, WHA/EPSC, EB/IFD/OMA 
STATE FOR EB/ESC MCMANUS AND IZZO 
STATE FOR EB/CIP SAEED AND FETCHKO 
USDOC FOR 4320/ITA/MAC/WH/ONAFTA/ARUDMAN 
USDOC FOR ITS/TD/ENERGY DIVISION 
USDOC FOR NTIA JCOFFIN 
TREASURY FOR IA (ALICE FAIBISHENKO) 
DOE FOR INTERNATIONAL AFFAIRS KDEUTSCH AND ALOCKWOOD 
STATE PASS TO USTR (EISSENSTAT/MELLE) 
STATE PASS TO FEDERAL RESERVE (CARLOS ARTETA) 
STATE PASS TO FCC (EMILY TALOG) 
NSC FOR DAN FISK 
 
E.O. 12958: N/A 
TAGS: ECON ECPS EFIN ELAB MX PGOV PREL
SUBJECT: MEXICO ECONOMIC NOTES, DECEMBER 28, 2006 - JANUARY 
5, 2007 
 
REF: A. MEXICO 7110 
     B. MEXICO 6973 
 
Sensitive but unclassified. 
 
Summary 
------- 
 
1.  (SBU) The Embassy held its second meeting with new Under 
Secretary for Communications Rafael del Villar who again 
 
SIPDIS 
asked to exchange views with USG officials on key telecom 
issues (Refs A and B)  National Action Party (PAN) Secretary 
General Jose Espinosa called for a third television network. 
The Mexican Ambassador in Venezuela called attention to A 
Mexico-Venezuela trade agreement under negotiation.  Cane 
workers and government officials restarted negotiations on a 
long-stalled sugar law.  A Chinese offical said he expected 
increased Chinese investment in Mexico, and the local press 
picked up a Department of Energy report critical of the 
Mexican oil sector.  End Summary. 
 
 
Communications Under Secretary Seeks Dialog with U.S. 
--------------------------------------------- -------- 
 
2.  (SBU) On January 5, Emboffs met for a second time with 
new U/S for Communications Rafael del Villar and his staff 
for what del Villar would like to become regularly scheduled 
informal gatherings to exchange ideas.  Del Villar also 
invited officials from the Canadian Embassy to the January 5 
meeting.  Del Villar said his interest was in exchanging 
ideas that could help extend telecom services to rural, poor 
communities in Mexico that were cut off from development. He 
also noted the goal of attracting investment to Mexico to 
create high value jobs and improving competitiveness in North 
America. Specifically, del Villar and his staff asked for 
information on U.S. and Canadian experiences in policies and 
regulation regarding broadband and wireless access, access to 
the internet, Voice over Internet Protocol (VOIP), television 
digitalization, telecom convergence, electronic signatures, 
and administration of radioelectronic spectrum for current 
and future services. They also asked how the U.S. and 
Canadian governments were organized to regulate 
telecommunications and establish policies, including the 
split between federal, state and municipal responsibilites 
for extending telecom services to their people.  Regarding 
calling party pays (CPP), del Villar said his Ministry was 
aware that the new system for charging for cell phone calls 
to Mexico had hit U.S. customers hard, was worried about U.S. 
perceptions, and wanted to hear U.S. views on CPP 
implementation in Mexico. Emboffs agreed to provide 
information on these topics, and to look into coordinating 
digital video conferences to link Secretariat of 
Communications and Transportation (SCT) officials with 
relevant USG experts. 
 
PAN Supports Greater Competition in Broadcasting 
--------------------------------------------- --- 
 
3.  (U) PAN Secretary General Jose Espina told the press that 
further competition in the broadcast sector was an important 
step for Mexican modernization; and, the PAN would support 
approval of additional broadcast networks to bring 
competition to the industry, though he stopped short of 
saying the PAN would propose new legislation. 
 
Mexico Seeking New Trade Agreement with Venezuela 
--------------------------------------------- ---- 
 
MEXICO 00000059  002 OF 002 
 
 
 
4.  (U) Mexican Ambassador to Venezuela Nicolas Escalante 
announced that Mexico and Venezuela have been negotiating a 
trade agreement following Venezuela's decision to quit the 
G-3 (Mexico, Venezuela, and Colombia).  The new agreement 
will be developed under the guidelines of the Latin American 
Integration Association (ALADI).  Mexico-Venezuela trade had 
increased substantially during the previous decade when the 
G-3 arrangement was in place. 
 
Cane Union Optimistic on Sugar Law Deal to Spur Production 
--------------------------------------------- ------------- 
 
5.  (U) Carlos Blackaller, leader of Mexico's Nation Cane 
Workers Union (UNC) announced that talks have begun with 
incoming Agriculture Secretary Alberto Cardenas over 
interpretation of Mexico's 2005 Sugar Cane Law.  Workers and 
the government agreed to push the process forward to spur 
production.  They believe Mexico could place 400 thousand 
additional tons of cane sugar in the U.S. market. The law, 
passed in 2005 has not been brought into force under an 
agreement between the executive and legislative branches. 
Parts of the text had been declared unconstitutional by 
Mexico's Supreme Court. 
 
Chinese Trade Representative on Mexico 
-------------------------------------- 
 
6.  (U) An Dali, Chinese Counsel for International Trade 
Promotion told the press that Chinese investors in Mexico 
were most interested in the logistics, automotive and auto 
parts, and general manufacturing sectors.  As the United 
States continued its de-industrialization, Canada will be 
replaced by China as the United States' leading supplier with 
Mexico in second position, he added. 
 
Press Raises an Eyebrow at DOE Report 
------------------------------------- 
 
7.  (U) Left-leaning daily "La Jornada" noted publication of 
a new Department of Energy Energy Information Agency Report 
on Mexico with the front page headline "Mexico, open to 
permitting energy investment: US."  Nonetheless, the story 
has seemed to go no further, and we have heard comments only 
from industry insiders. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity 
GARZA