Friday, March 20, 2008

The 2008 LAVCA-AMEXCAP Summit will convene the major players in Latin American PE and VC, from Mexico, Brazil, Argentina, Chile, Colombia, Peru and Central America for two days of high-level debate and discussion. Under the theme "Investing in the Future of Latin America", fund managers, investors, regulators and government officials will map out a path for the future of private capital in the region.

On April 9th-10th, the Latin American Venture Capital Association (LAVCA) and the Mexican Private Equity Association (AMEXCAP) will convene over 200 fund managers, investors, policymakers and regulators in Mexico City for an extraordinary joint Summit on the future of private capital investment.

Summit highlights include a program on the current investment landscape and opportunities in Mexico, a special investor workshop for regional pension funds and global institutional investors, and case studies of deals and exits from the leading managers in Latin America – from venture capital to mid-market buyouts and large-stage deals.

Alfredo Thorne, Managing Director of Economic and Policy Research for JPMorgan Chase will moderate a panel on mid- to long-term prospects for Latin America, with the participation of Francisco Gil Diaz, Former Finance Minister of Mexico and Gustavo Franco, Former Central Bank Governor of Brazil.

On April 9th LAVCA and AMEXCAP will also co-host a gala reception on Mexico City’s premier private club, Club de Industriales.

The home of two of the world’s emerging economic powers and numerous multinational giants, Latin America is riding an international resource boom and an increased role in value chain manufacturing. It has become a key component in emerging market portfolios. Why? What lies ahead? What are the challenges?

Jonathan Hausman, Portfolio Manager and Head of Emerging Markets Fixed Income, Ontario Teachers’ Pension Plan

John Price, Managing Director, Business Intelligence - Latin America, Kroll, and co-author of “Can Latin America Compete?” (Palgrave Macmillan)

Moderated by:
Amanda Lang, Co-Anchor of “SqueezePlay”, Business News Network

Wednesday, April 16, 2008
11:30 a.m. - 1:30 p.m.
The National Club
303 Bay Street
Toronto, ON

Join more than 400 transportation, logistic and economic development specialists from across Mexico, United State and Canada at this dynamic annual conference in Mexico which will focus on key trade and transportation issues and opportunities for improved cooperation and economic partnership among the three North American countries joined by the International Mid-Continent Trade and Transportation Corridor ( NASCO Corridor)

For more complete information on the conference and/or to register please visit www.nascogto.com.

For more information from the United States or Canada:
Rachel Connell
214-744-1006

The International Economic Forum of the Americas - The Great Transition: Mastering Change

The International Economic Forum of the Americas/Conference of Montréal has as its principal mission the promotion of wide-ranging and completely open discussion of the major international economic issues. It also aims at facilitating the creation of contacts between representatives of businesses, governments and international agencies as well as members of the academic world and civic society, thereby encouraging international exchanges.

"Canada-Mexico: A Partnership that Matters"
Highlights from presentation by Guillermo E. Rishchynski, Ambassador of Canada to Mexico, at CCA Breakfast on March 7, 2008

Mexico should be the partner of first importance to Canada, second only to that of the U.S. but, despite a healthy $20+ billion bilateral trade relationship, “our partnership flies under the radar in this country,” said Guillermo Rishchynski, Ambassador of Canada to Mexico and guest speaker at CCA’s March 7 breakfast meeting. “It should be better leveraged as we face globalization’s challenges and competitive issues.”

He had this challenge for CCA members “How can each of us articulate the importance of Mexico and link into the greater drama of how we position ourselves in the world?” He emphasized that the economic well-being of our country is inextricably linked to this hemisphere and that the re-opening of NAFTA would be a step backward. “The FTA resulted in a Canada-Mexico partnership that has defied even the wildest of expectations…Groups like CCA need to get this message out. The public should hear about the benefits from people like yourselves, not just politicians.”

Although he acknowledged there are challenges in Mexico – such as the need to increase labour mobility beyond agriculture, an over-dependence on declining oil revenues, and border issues to the North and South, he emphasized that President Calderón and his reform-minded Cabinet are tackling these. Initiatives include a focus on improving public security and investment in basic infrastructure. The Ambassador urged Canadian companies to have patience when dealing with Mexico where results typically take longer to realize than in Canada and the U.S.

He added that it’s important for Canada and Mexico to get “common cause” issues in a position of strength before a new U.S. administration is in place. Among his recommendations are integrated production, greater institutional linkages, and smart choices regarding the usage of bilateral and trilateral agendas respectively, stressing that an acknowledgement of their fundamental differences is key.

Noting that Canada’s political relationship has never been better, the Ambassador stressed that “Trade with Mexico is not just about the movement and selling of goods; it’s about people and developing relationships.”

" … The official also called for strengthening political and economic relations between both parts.

Gaisionok assured that possibilities of the Caribbean nation have broadened and created premises for strengthening and deepening relations.

The 7th Commission identified common interests in priority sectors of the national economy such as in informatics, communication, transportation, construction, iron and steel industry and biotechnology. …"

Doubts Mount Over Sustainability of Chile's Mining Expansion
(The Globe and Mail)

SIGNIFICANCE: With the price of copper, its main export, at record levels, Chile is experiencing a mining boom, both in terms of revenues and investment projects.

ANALYSIS: In 2007, Chile's mining industry accounted for exports worth $43.7-billion ( U.S.), or 64 per cent of total exports.

This represented a six-fold increase on five years earlier – when the sector accounted for some 40 per cent of total exports – and is largely the result of higher sales of copper as well as of molybdenum, a copper by-product.

Copper exports reached $38.2-billion in 2007 when their price, driven mainly by Asian demand, averaged $3.23/pound, up from $3.05 in 2006 and 70.6 cents/pound in 2002.

The volume of Chile's copper exports has also increased, although to a lesser extent, reaching 5.7 million tonnes in 2007, up from 4.5 million tonnes in 2002. …"

First Steps to Defuse Argentine Gov. Farmers' Conflict
(Mercopress)

Excerpt from original article:

"… Mrs. Kirchner also claimed that her government was not against the small farmers, but cautioned that behind them ’hide the interests of the big pools’ who are saying the government wants to take all their profits.

She also argued that by lifting levies (to 42%) on soy beans of which 95% are exported, and lowering them for wheat and corn (29%) the government was promoting crops that help feed Argentines and Argentine livestock. Otherwise many Argentines at current world prices would not have access to a decent daily meal.

Argentina, a leading exporter of beef, corn, soy oil and soybeans, has benefited from the recent global surge in commodity prices.…"

For the full story, click here: http://www.mercopress.com/vernoticia.do?id=12999&formato=html

" Mexico's government is preparing to open bidding on the largest infrastructure project in the nation's history, a $4-billion seaport that could transform this farming village into a cargo hub to rival the ports of Los Angeles and Long Beach.

If completed as planned by 2014, the port would be the linchpin of a new shipping route linking the Pacific Ocean to America's heartland.

Vessels bearing shipping containers from Asia would offload them here on Mexico's Baja peninsula, about 150 miles south of Tijuana, where they would be whisked over newly constructed rail lines to the United States.

The massive development, which is to be privately funded, is attracting interest from heavyweights such as Mexican billionaire Carlos Slim Helu. The world's second-richest man is part of a consortium planning an "aggressive" run at the project, …"

Lula Supports Alliance Pemex-Petrobras
It proposes to create another company to avoid speculation about attempts at privatization
By: Agencies, Friday, March 28, 2008
Correo El Diario del Estado de Guanajuato

The president of Brazil, Luiz Inacio Lula da Silva on Thursday endorsed a possible alliance for the exploration of new oil fields between Petrobras and the Mexican state Pemex, which is suffering from a decline in its oil production.

At a meeting of Brazilian and Mexican businessmen in the city of Recife, Lula had mentioned the idea to his Mexican Felipe Calderon, but gave no clues about his reaction.

"Once I told Calderon is known and notorious that Pemex production is falling, so why not make a third company between Pemex and Petrobras for new fields? Why not make a huge investment in biodiesel in Mexico ?, "said Lula.

The Brazilian representative commented that Mexico has tried to Pemex, the monopoly of the oil sector, "as an untouchable goddess," while the company was unable to invest in technological development, given that the government was using many of its funds.

Lula said that the creation of a third company in Mexico avoid speculation about attempts to privatize Pemex.

Pemex is being pressured to speed up the exploration of oil deposits in deep water, where preliminary seismic assessments would suggest that about 30 billion barrels of oil.

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Disclaimer – CCA Update is provided as an information service to our members and key contacts. It is designed to provide the most up-to-date trade information from a variety of sources. The information we feature does not necessarily reflect the Council’s opinion on a given international trade issue. Although we endeavour to disclose accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. The Canadian Council for the Americas cannot assume any responsibility for actions taken solely or principally on the basis of information provided.