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					   Barbados         Page 2                             Trinidad & Tobago Page 4                           Puerto Rico       Page 5                                 Mexico     Page 7
   Infrastructure improvements                         New look at the                                    Infrastructure, manufacturing,                           Open and focused
   sustain premier destination status                  emerging                                           and finance advances are                                 reforms have
                                                       infrastructures                                    keeping the                                              maintained
                                                       and                                                country’s                                                economic stability
                                                       diversification of                                 growth rate                                              and increased
                                                       a Caribbean giant                                  strong                                                   market competition

 This supplement to USA TODAY was produced by United World LTD.: 4410 Massachusetts Ave NW, Washington - DC 20016 - Tel: 1-202.347.9022 - Fax: 1-202.347.9025 -

                                                                                   TUESDAY, JULY 6, 2004

Barbados                                                                                                  Trinidad & Tobago
                                                                      s BARBADOS is one of the
                                                                      success stories of the
                                                                      Caribbean. Its economy is less
                                                                      than half the size of Jamaica’s,
                                                                      for instance, yet per capita in-
The success story                                                     comes are almost three times
                                                                      as high. The security of a sta-
continues apace                                                       ble political environment has
                                                                      much to do with the island’s po-                                                                 commerce and
                                                                      sition, creating steady average
                                                                      annual growth and keeping in-
                                                                      ternal conditions conducive to
                                                                                                                                                                       Caribbean leisure
                                                                      continued investment and de-                                                                     s TRINIDAD and Tobago, a two-island na-
                                                                      velopment.                                                                                       tion located in the most oil- and gas-rich
                                                                        The Barbados economy is                                                                        waters of the Caribbean, has built up a
                                                                      expected to grow by between                                                                      strong relationship with the U.S. on the ba-
                                                                      3 percent and 3.5 percent in                                                                     sis of energy exports. But the vision that
                                                                      2004, buoyed by the parallel                                                                     the country has for its future extends well
                                                                      improvement in the global                                                                        beyond such sector-specific activities, and
                                                                      economy and the strength of in-                                                                  the government is proceeding with a num-
                                                                      creased growth in tourism, con-                                                                  ber of programs to boost, develop and di-
                                                                      struction, and wholesale and                                                                     versify Trinidad and Tobago’s economy.
                                                                      retail activity. As the island’s                                                                   A long term planning initiative known as
                                                                      economy has been moving                                                                          Vision 2020 was launched two years ago.
                                                                      away from sugar manufactur-                                                                      Within this, the action plan for 2002-2007
                                                                      ing and production, tourism                                                                      focuses on economic development in the
                                                                      has become the country’s main                                                                    manufacturing, services, agriculture and
Owen Arthur, Prime Minister of Barbados, addressing the UN                          Continues on page 2   The world recognizes the country’s potential                                               Continues on page 4

Puerto Rico                                                                                               Mexico
                                                                                                                                                                  titude that has occurred. Americans understand Mex-
                                                                                                                                                                  icans better now and vice versa, and this has led to a
                                                                                                                                                                  better understanding between the two countries. From
                                                                                                                                                                  the business point of view, NAFTA has been a huge
                                                                            The country is developing                                                             success, objectives were fulfilled, jobs were created
Vision 2025 unites                                                              the capacity to gauge
                                                                                 market changes and
                                                                                                          An impressive                                           and trade increased. Whatever the measurements are,
                                                                                                                                                                  it’s been a very successful ten-year period.”
sectors for development                                                                 the flexibility
                                                                                  to respond to them      global presence                                            Another principal factor assuring the continuity of
                                                                                                                                                                  ties between the United States and Mexico is the large
                                                                                                                                                                  number of Mexican nationals residing within U.S. bor-
s IN THE PAST, Puerto Rico’s        adversely affect investment by                                        s MEXICO entered the global economy with its            ders, which is currently estimated at some 25 million
economic success has been based     U.S. firms in Puerto Rico, Mil-                                       signing of the North American Free Trade Agree-         people. Although many are still undocumented, the
on manufacturing, and its privi-    ton Segarra, Secretary for                                            ment (NAFTA) in 1994. Since then, Mexican trade                                            Continues on page 7
leged relationship with the U.S.    Economic Development                                                  with Canada and the United States, the other two sig-
has provided incentives for eco-    and Commerce,                                                         natories, has tripled, raising the country’s                                   An increasing trade balance is
nomic development in this and       Continues on                                                          balance of trade from $80 billion in 1993                                           evidence of the country’s
other areas. However, changes       page 5                                                                to $240 billion in 2002.Today, exports                                       numerous Free Trade Agreements
are afoot both globally and lo-                                                                           represent more than half of Mexi-
cally, and Puerto Rico is now re-                                                                         co’s GDP, and over 80% of Mexi-
grouping its economic strategies                                                                          can exports are destined for
to find the best way forward.                                                                             the U.S., which in turn
  One important change has been                                                                           supplies 74% of Mexico’s
the repeal of U.S. Internal Rev-                                                                          imports. Co-chair of the
enue Code Section 936, a law                                                                              Mexico-U.S. Business
which provided U.S. firms op-                                                                             Committee James Jones
erating in Puerto Rico with tax-                                                                          comments, “One of the
free income. Although there                                                                               best things about NAFTA
have been fears that this could                                                                           has been the change in at-

                                                                                                                                  The water park designed and built
                                                                                                                                         by Mother Nature.

                                                                                                                                                         the last authentic Caribbean experience

                                                                                                           There’s still a real Caribbean out there. Where green monkeys and flying fish mingle with
                                                                                                           laughter and breathtaking natural beauty. Find it at or 1-888-BARBADOS.

    Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content
Distributed by USA TODAY                                                                             Our World                                                                              Tuesday, July 6, 2004                  2

Barbados                                                                                                         The visionary plan for a ‘New Creative Economy’ and continued
                                                                                                                 investment and growth put the island in a strong position to play
                                                                                                                 an influential role in regional affairs.

The success                                                                                                                                                                              supported by the necessary leg-
                                                                                                                                                                                         islation is being set in motion.
                                                                                                                                                                                           As part of the new creativity,
                                                                                                                                                                                         Barbados wants to focus on es-

story continues                                                                                                                                                                          tablishing a strong design cul-
                                                                                                                                                                                         ture.      With       Barbadian
                                                                                                                                                                                         educational levels already high,

apace                                                                                                                                                                                    activities relating to the devel-
                                                                                                                                                                                         opment of culture and the arts
                                                                                                                                                                                         will be introduced into the al-
                                                                                                                                                                                         ready high-standard education-
Continued from page 1               in the luxury end of the market,                                                                                                                     al system at all levels.
economic driver although, like and this is something that the                                                                                                                              As far as investment goes,
other island nations in the re- current administration wants to                                                                                                                          Barbados remains an attractive
gion, it suffered a drop as a re- foster. “The immediate plan is                                                                                                                         destination. In addition to the fa-
sult of September 11, 2001. The to make Barbados a top-quali-                                                                                                                            vorable political climate – Mr.
attractions of such a safe and ty tourism destination,” says                                                                                                                             Arthur is in his third term in of-
close location are now drawing Mr. Arthur.                                                                                                                                               fice – infrastructure, legal, and
the tourists back, and the out-       Another area in which the                                                                                                                          tax systems are well developed.
look for both land-based and Prime Minister sees scope for                                                                                                                               The Prime Minister stresses
cruise tourism is expected to be growth is that of financial ser-                                                                                                                        Barbados’ long-standing ‘tra-
promising over the coming year, vices. In light of the global trend                                                                                                                      ditionally friendly and con-
in addition to a projected in- towards the liberalization of                                                                                                                             structive’ relationship with the
crease in airlift capacity from services, he says, Barbados’ fu-                                                                                                                         U.S., but emphasizes that actu-
major cities in the U.S., UK, ture lies in becoming a pro-                                                                                                                               al investors tend to be from the
Canada, and Europe.                 ducer. The island is a member                                                                                                                        UK. The creation of a strong
  With a view to maximizing of CARICOM, the Caribbean                        Activities relating to the development of culture and the arts will be introduced into the education system international financial services
the island’s potential,                       Community, and is                                                                                                                          industry should attract more
the government has          Tourism and fully committed to the               activity in order to support the cultural industries, which the economy. A program of infra- Americans. “We have chosen
stated its intention of        financial      creation of a CARI-            projected three-percent annual government hopes will be a cat- structure building, institution- financial services as an area to
focusing on the ser-        services are COM Single Market                   average growth rate. One main alyst for growth and transfor- al strengthening, focused anchor our relation with the
vice industries to in-       bringing a       and         Economy            area will be the development of mation of the Barbadian expenditure, and tax incentives U.S.,” says Mr. Arthur.
crease the rate of           new era of       (CSME). “We have a
growth. “This can on-                         long history of in-
ly be achieved by                             vesting in human re-
opening our society and our sources and, given our strong
economy to opportunities in service culture, the economic
                                                                             A liberalized financial system bodes
tourism and financial services integration will provide some
and evolving into a true pro- serious opportunities for estab-
fessional service culture,” says lishing Barbados as an impor-
                                                                             well for single market competition
Owen Arthur, Prime Minister tant service provider in the                     s BARBADOS has made the                                                                                              tral Bank is in the process of
of Barbados.                        Caribbean,” says the Prime               most of the international expan-                       INFLATION AND GDP GROWTH                                      liberalizing our financial sys-
  One opportunity to be taken Minister.                                      sion in offshore financial sector                                                                                    tem so as to ensure that cross-
is the island’s position at the       The emphasis is not so much            activities and has developed this          4                                                                         border capital movements take
top end of the tourism market. on competition as on compati-                 sector accordingly – it is now the                                                                                   place without any encum-
Barbados, with its range of cul- bility, and the administration              second major foreign exchange              2                                                                         brances,” says the Governor.
tural and natural attractions cou- aims to implement this with its           earner after tourism. Adequate                                                                                       Over the past few years, the ex-
pled with a secure environment visionary plan for a ‘New Cre-                telecommunications infrastruc-                                                                                       change-rate controls have been
and an economy that performs ative Economy’. This propos-                    ture, a well-trained and English-          0                                                                         reduced, and liberalization with
well, has traditionally brought es to stimulate a new area of                speaking workforce, and a stable                                                                                     respect to CARICOM is ex-
                                                                             political environment give the           -2                                                                          pected over the next year.
         INVESTMENT                                                          country an additional advantage                                                                                         The end result will see Bar-
                                                                                                                  WORLD MARKET RESEARCH CENTRE

                                                                             over other, similar destinations.                                                                                    bados making the most of its
                                                                             Barbados has also come out well          -4                                                                          strengths in the sector. “We are
                                                                             from the increased scrutiny and                                                                                      concentrating on making do-
                                                                             regulation of financial services         -6                                                                          mestic adjustment in order to fit
                                                                             by international organizations                                                                                       our economy to the Single Mar-
                                                                                                                          ‘00 ‘01 ‘02 ‘03e ‘04f ‘05f ‘06f ‘07f ‘08f
                                                                             such as the Organization of Eco-                                                                                     ket and at the same time improve
                                                                             nomic Cooperation and Devel-                                     Inflation %                                         the position of our service
                                                                             opment (OECD).                                                   GDP Growth %                                        providers so they can exploit
                                                                                “This is attributable to the care                                                                                 further the market opportunities
                                                                             taken in the past in ensuring that still a sizeable U.S. component,” to other international financial                that arise,” says Prime Minister
                                                                             the best candidates are selected says the Governor. She would centers, with modern payment                           Owen Arthur.
                                                                             for doing business in Barbados,” like to see this going further. and clearing systems. The Cen-                         Dr. Williams stresses that any
                                                                             says Marion Williams, Gover- “The U.S. is the most important tral Bank offers guidance on                            potential problems arising from
                                                                             nor of the Central Bank of Bar- country in the world, so it must monetary and financial matters.                     the free movement of people
                                                                             bados. The           government play a more important part than          Key to Barbados’ continued                  within the region will be offset
                                                                             introduced legislation in 2000 to any other country,” she says. development as a world-class                         by the advantages. “One cannot
                                                                             improve supervisory measures, Barbados currently has a dou- financial services center is the                         allow shortages to exist in par-
                                                                             and it has had anti-money laun- ble taxation treaty in place with country’s forthcoming integra-                     ticular sectors of the economy if
                                                                             dering regulations in place since the U.S., as well as other bilat- tion into the CSME. “The Cen-                    the problem can be solved by us-
                                                                             1998. This high level                          eral      investment                                                  ing resources from the region,”
                                                                             of due diligence, as            Stability,     treaties.                                                             she states. The end-product of
                                                                             Dr. Williams states, proximity, and              The Barbados bank-                                                  combining the strengths of dif-
                                                                             has meant that the im-        development ing sector is also do-                                                     ferent countries within the CARI-
                                                                             pact of global scruti- attract further ing well, having                                                              COM region will be, she believes,
Corporation brings island                                                    ny has been minimal
                                                                             and that the sector is
                                                                                                          U.S. investor adapted to changes in
                                                                                                                            the economic envi-
                                                                                                                                                                                                  enhanced output in both volume
                                                                                                                                                                                                  and range. Barbados and the oth-
                                                                             expected to continue                           ronment. “We have                                                     er CSME members will be able
into global marketplace                                                      to do well.                           witnessed a number of mergers
                                                                               One aspect that makes the sec- and acquisitions over the last
                                                                                                                                                                                                  to create products that hold their
                                                                                                                                                                                                  own in competition with other
s WITH Barbados moving into developments in the manufacture                  tor attractive to U.S. investors several years, which have been                                                      jurisdictions.
regional market agreements such of food products.                            in particular is the fixed ex- related to the need to become                                                            In order to keep Barbados’po-
as the CSME and the Free Trade             Vince Yearwood, former CEO        change tied to the U.S. dollar. more competitive and to in-                                                          sition competitive, the govern-
of the Americas Act (FTAA), it of the BIDC, is confident of the              This and the island’s proximi- crease economies of scale,” says                                                      ment has embarked on a process
is lucky there is an organization country’s advantages. “The expe-           ty, aided by direct air routes, Dr. Williams. She visualizes                                                         of tax reform. “For an economy
which has the promotion of Bar- rience of investors who have es-             have helped to direct North Barbados’ banking sector be-                                                             that is entering a single market,
bados abroad as its primary con- tablished facilities here indicates         American capital into the coun- coming a launch-pad for com-              MARION V. WILLIAMS                         Barbados must and has already
cern. The Barbados Investment that they have seen cost savings               try. “While investment in the panies from which they can                Governor of the Central Bank                 started to make its tax rate at-
and Development Corporation to the tune of 30 to 40 percent,”                international financial sector is move outside the region. Tech-                of Barbados                          tractive and competitive in the re-
(BIDC) is in charge of bringing he says. He also highlights Bar-             principally Canadian, there is nological support is comparable                                                       gion,” says the Prime Minister.
fresh sources of foreign direct in- bados’human capital as one of its
vestment into the country by pro- chief assets, with high levels of ed-
moting the island’s business ucation and training and a strong                          CARICOM                                                                                                        USEFUL WEBSITES
advantages.                              work ethic leading to reductions                                                                                                                              Prime Minister’s Office:
   Direct marketing is the most in recruitment costs.
useful tool in this. The                             Mr. Yearwood ex-
                                                                             Removing barriers in the Caribbean                                                                            
BIDC has offices in the          A variety of pects that the addition-       sTHE CARIBBEAN Community association, CARI- lieves that the CSME is all about giving market ac-                         of Barbados Information
UK, U.S., and Canada,            assets make al challenges involved in       COM, has as its main aims the broadening of economic cess in order to get market access.                                Network:
which interact directly         Barbados the joining the CSME and            co-operation between countries in the region. The lat-    The CSME is seen as the most effective means by     
with potential cus-               country of       the FTAAwill motivate     est drive is the creation of a common market along the which the Caribbean economies can be successfully                  Parliament of Barbados:
tomers in those loca- choice for new companies to improve                    lines of the European Union; by removing barriers to integrated into the global economy in a way that min-              www.parliamentbarbados.
tions. In addition, trade                          their whole approach to   trade in goods and services and opening up new op- imizes the costs and maximizes the benefits. One area      
seminars are arranged             investment       business. “We at BIDC     portunities, the CARICOM Single Market and Econ- in which Barbados stands to benefit is in the provision                  Ministry of Industry and
to bring together people from spe- and players in the industry recog-        omy (CSME) is expected to stimulate growth and add of services, as in the past restrictions maintained by               International Business:
cial interest groups.                    nize that we are competing in a     to the potential for international competi- The CSME will other Caribbean countries have hindered                       www.barbadosbusiness.
   Strong local industry is seen as global marketplace,” he says. “The       tiveness of its member states, as well as cre-                       expansion. In anticipation of the opening
an essential part of the country’s vision which the BIDC has is to           ating the perception of a harmonized              stimulate          of markets, the country’s main service in-           Barbados Investment
future, alongside a competitive ser- see Barbados as the country of          investment area in the Caribbean.                growth and          dustries have now constituted themselves           and Development
vices sector, and the BIDC works choice for new investment, with a              The market will see free movement in            create a          as the Barbados Coalition of Services              Corporation:
to promote all economic areas. In strong indigenous sector, while be-        goods, people, and capital throughout the        harmonized Providers. The government is supporting           
particular, Barbados has seen some ing the services capital and export       region, and all member countries have agreed investment area the initiative by allocating resources and                   Central Bank of Barbados:
recent success in the establishment leader of the region,” he adds.          to a program of removing such restrictions                           helping to promote the Barbados Brand.   
of call centers, and expects to While Barbados is on the right path          on a phased basis by 2005. In accordance with this,       In all, the CSME is perceived as an ideal instrument            Barbados Port Authority:
achieve enhanced competitiveness to achieve these aims, he stresses          Barbados is currently removing its own restrictions on to help Barbados export its most dynamic industry not  
in the area once the telecommuni- that it is time to accelerate. “Irre-      the movement of capital and the provision of services. just within the region, but further afield; to attract out-        Barbados Tourism
cations sector is fully liberalized this spective of how well you have       “We want to make Barbados implement all of its oblig- side interest as well as reaching new markets. “Bar-              Authority:
year. Barbados also has a fairly done, there is always room for im-          ations in the CSME by 2004, fully a year ahead of the bados wants to make itself competitive and compatible   
healthy export sector, with recent provement,” he says.                      target date,” says Prime Minister Owen Arthur. He be- within the Single Market,” says Mr. Arthur.

     Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content
3    Tuesday, July 6, 2004                                                                                   Our World                                                                                              Distributed by USA TODAY

                                       Safe berth for true infrastructure excellence
                                       s WHEN it comes to ports, Bar-                                                       step with the profile that suits a mod-   we are a high-quality provider of ex- pening internationally,” he states.
                                       bados is in a class of its own. The                                                  ern port,” says Mr. Walters. Activ-       cellent service,” he says.                  Barbados’ technological experi-
                                       Port of Bridgetown is a multipur-                                                    ities were zoned for better                  There is room for expansion in ence in the running of a successful
                                       pose facility dealing with cargo and                                                 management, allowing a cost-cen-          the manufacturing sector, as the port’s port is a commodity that can be ex-
       Country name: Barbados          cruise ships as its core businesses,                                                 tered approach so the performance         export capabilities are more than ad- ported to mutual benefit, as an effi-
       Capital: Bridgetown             but it is in the latter area that the port                                           of each separate aspect could be          equate for current volume. To stim- cient networking of ports is essential
       Location:                       has headlined in recent months, be-                                                  monitored.                                ulate industry, the port has created to international activities such as
    Caribbean, island in the           coming the first and only Caribbean                                                     “The challenge is to make sure         an incentive program of reduced transhipment. Indeed, transfer of
    North Atlantic Ocean,              port to berth the Queen Mary 2 lux-                                                  that we carry out our business in a       rates to lower the cost of exports and know-how to neighboring ports is
    northeast of Venezuela             ury cruise liner on her maiden voy-                                                  very efficient and effective man-         to attract greater levels of foreign already underway in the form of
       Area: 166 sq. miles             age from Southampton to Fort                                                         ner at all times,” says Mr. Walters.      exchange. Transhipment is another training programs on security, op-
       Coastline: 60 miles             Lauderdale.                                                                          The key to this is balancing the          strong sector, one which                            erations, and industrial
                                          The Queen Mary chose Barbados                                                     needs of cargo and cruise interests,      showed a marked in- Standards keep relations.
                                       because the port’s consistent work                                                   and the port area has been divided        crease after the port was       improving at           In terms of stimulat-
    Tropical; rainy season
                                       to stay ahead of the area’s shipping                                                 accordingly, with a holding area for      restructured in 1992.          Bridgetown to ing tourism for the island
    (June to October)
                                       needs means it has the capacity to                EVERTON WALTERS                    two large cruise ships and another           Full integration into        keep port at as a whole, Mr. Walters
                                       berth such a huge ship. Ever since                  General Manager                  area with capacity for three to five      the CSME will present head of regional states that improvements
    relatively flat; rises gently
                                       the eighties when the cruise indus-               of the Barbados Port               cargo vessels.                            Barbados, and the port,                             at the port are carefully
    to central highland region                                                                                                                                                                           facilities
                                       try took off, the port has seen an ex-                  Authority                       Again, this is not final. “Growth      with an ideal opportu-                              integrated with other in-
       Natural resources:              ponential growth in passenger                                                        is taking place at such a rapid pace      nity for additional growth. “The port frastructure such as the airport and
    Petroleum, fish, natural gas       numbers thanks to a commitment to            new cruise pier is planned that will    that currently we are making plans        has a very important role to play as the road system, in order to facili-
       Population:                     development and quality.                     cater for other mega-vessels in line    for further berthing arrangements,”       the gateway in terms of trade,” says tate transfers within the island. In
    277,264 (July 2003 est.)              Everton Walters, the Barbados             with the government plan to con-        says Mr. Walters. He wants                Mr. Walters. He sees the port’s role fact, standards at the airport are
       Population growth rate:         Port Authority General Manager, is           centrate on the luxury end of the       Bridgetown Port to be seen as the top     as extending beyond island inter- equally high, with daily direct flights
    0.38% (2003 est.)                  confident that the port’s infrastruc-        tourism market.                         facility in the Caribbean, and stress-    ests and encompassing regional ac- to major destinations – Grantley
       Ethnic groups:                  ture can keep growing to suit the              The less glamorous areas of port      es the importance of marketing to         tivity. “We have to reach out beyond Adams International Airport won the
    Black 90%, White 4%, Asian         changes within the maritime indus-           activity are also being developed. In   stimulate interest as well as the need    our borders and integrate the coun- 2003 World Travel Award for best
    and Mixed 6%                       try. Along with major dredging               the mid-nineties, the management        for consistent quality to satisfy cus-    tries in our region to ensure that they Caribbean airport, and has been
       Languages: English              works carried out two years ago, a           aspect was restructured “to keep in     tomers. “We want to make sure that        are also in step with what is hap- nominated again this year.
       National holiday:
    Independence Day,
    November 30 (1966)                                                                                                                                                                                               PRIZE COUNTRY
    $4.153 billion (2002 est.)
       GDP per capita:                                                                                                                                                                                            Bonanza at
    $15,000 (2002 est.)
       Inflation rate:                                                                                                                                                                                            the World
    -0.6% (2002 est.)
       Industries:                                                                                                                                                                                                Travel Awards
    Tourism, sugar, light
    manufacturing, component                                                                                                                                                                                      sBARBADOS’ position at the top
    assembly for export
                                                                                                                                                                                                                  end of the tourism spectrum can-
                                                                                                                                                                                                                  not be denied. But full confirma-
       Agriculture products:
                                                                                                                                                                                                                  tion of this – by qualified travel
    Sugarcane, vegetables,
                                                                                                                                                                                                                  professionals – came in 2003, when
                                                                                                                                                                                                                  it won six gongs at the prestigious
                                       Improvements in infrastructure sustain island’s top offering                         With Barbados’ natural attractions, luxury tourism comes easy                         World Travel Awards. In addition
    $227 million (2002)                                                                                                                                                                                           to the island being voted the
       Exports - commodities:
    Sugar and molasses, rum,
    other foods and beverages,
                                       Premier destination comes out on top                                                                                                                                       Caribbean’s leading destination,
                                                                                                                                                                                                                  the Barbados Tourism Authority
                                                                                                                                                                                                                  claimed the title for the area’s top
    chemicals, electrical              s TOURISM is the driving force               the September 11 attacks, but con- investment in the sector has been              will eventually speak for itself. “I        Tourist and Convention Bureau.
    components                         behind Barbados’ economy, and it             fidence is starting to build up again. significant. “The challenge for us         think that as long as we provide the        Three of the country’s private-sec-
       Export partners:                is a sector which is continually grow-       In January this year, business from is to deploy that capital in the way          necessary services, then those busi-        tor facilities also received recog-
    U.S. 14.7%, Trinidad and           ing. In 2003, visitor numbers were           the area was up by 10 percent, and we get the greatest return,” says Mr.          nesses will come,” he states.               nition: the Sherbourne Conference
    Tobago 12%, UK 10.6%,              up by 6.6 percent, while this year’s         with the additional airlift, the U.S. Jordan. The government is also tak-            Certainly, judging by the prizes         Centre; the Villa Nova Boutique
    Jamaica 6.2%, Saint Lucia          conservative forecast is for five per-       market share is rising above 20 per- ing an active role in attracting out-        won at last year’s World Travel             Hotel; and the Sandy Lane Golf Re-
    4.7% (2002)                        cent growth. The island’s strong             cent. “I wouldn’t say it is back to side investment.                              Awards and the many nominations             sort each came away with the
       Imports:                        links to the UK mean that 40 per-            normal yet, but I think eventually       Aside from the lucrative cruise          for this year, Barbados has proved          Caribbean title for their respective
    $987 million (2002)                cent of business comes from there,           it will be,” says Mr. Jordan.          ship industry, which is going from         its position among the best-quality         categories. And on top of all that,
       Imports - commodities:          but Barbados is keen to foster in-              The BTA president appreciates strength to strength, Barbados is fo-            travel destinations in the world.           Grantley Adams International Air-
    Consumer goods,                    creased traffic from the United States.      that the extra distance compared to cusing on niche tourism such as               With a market continually on the rise       port won its own award.
    machinery, foodstuffs,                Over the past few years, the fo-          other Caribbean desti-                            golf, diving, and the hon-      and the concerted efforts of the BTA           Barbados, which is already one
                                       cus has been on providing addi-              nations such as Jamaica
                                                                                                                     Top notch        eymoons and wedding             to extend awareness of all that is on       of the most popular Caribbean des-
    construction materials,
                                       tional air services into Barbados.           has also played a role in         tourism         business. In particular,        offer, it definitely seems worth the        tinations, will be hosting this year’s
    chemicals, fuel, electrical
    components                         “We have been pretty successful. We          keeping U.S. visitors          continues to the BTAhas partnerships               extra mile. As Mr. Jordan says: “A          celebrations and should receive a
       Import partners:                have attracted a number of new car-          away, but he also sees it attract visitors with the major golf clubs              little bit further to get to, but a whole   huge boost in tourism as a result.
    U.S. 41.1%, Trinidad and           riers from the U.S. market,” says            as a reason to focus on       searching for on the island for this type           lot harder to leave.”                       The island not only boasts stunning
    Tobago 17%, UK 7.3%,               Oliver Jordan, President and CEO             the luxury end of the          a luxury stay of promotion. However,                                                           landscapes and beaches, historic
    Japan 4.2% (2002)
                                       of the Barbados Tourism Authori-             travel market. “Because                           most of the BTA’s bud-                                                      and cultural attractions, and fine
    Source: CIA - The World Factbook
                                       ty. U.S. Airways and Continental             we are an expensive destination, we get is spent outside of Barbados in                                                       dining and nightlife, which are of
                                       have started services to the island,         need to position ourselves as a high- promotional activities. The organi-                                                     great interest to the leisure travel-
                                                      and discussions are on-       er-class destination,” he says. This zation is currently creating a new                                                       er; it also has excellent airport and
                                                      going with other air-         does not mean that Barbados is not brand image for Barbados, with the                                                         seaport facilities, good trans-
                                                      lines. The next step is       eminently equipped to cater for all tag line ‘Barbados. The last au-                                                          portation infrastructure, and an ul-
                                                      stronger marketing            classes of tourist – there is a range thentic Caribbean experience’,                                                          tra-modern telecommunications
                                                      programs to support           of properties that can accommodate which will be run as a television                                                          system – more important to those
                                                      the airlifts. “We need        almost any kind of budget.             campaign in the United States.                                                         who visit on business.
                                                      to ensure that the               But the island is generally per-      Outside of leisure activities, the                                                      Barbados is pulling out all the
                                                      planes that come are          ceived as one of the premier desti- island is a strong international play-                                                    stops to make the World Travel
                                                      full,” he says. Re-           nations in the region, and it is this er in the conference sector. The                                                        Awards 2004 an unforgettable ex-
                                                      structuring has also          area which is receiving particular Sherbourne Centre, for instance,                                                           perience. Over a five-day period,
                                                      been an issue, in or-         government attention. “Barbados has already successfully hosted                                                               guests will be offered a selection
                                                      der to make the in-           must not only provide value for many large-scale conferences, and                        OLIVER JORDAN                        of high-level networking events,
                                                      dustry more flexible.         money, it must occupy a special is now involved with the BTA in a                        President and CEO                    allowing guests the perfect op-
                                                         The number of U.S.         niche at the top end of the tourism campaign to attract more custom                   of the Barbados Tourism                 portunity to meet and do business
                                                      visitors to Barbados          destinations market,” says Prime from America. Mr. Jordan is con-                             Authority                       while enjoying the amenities for
                                                      dropped as a result of        Minister Owen Arthur. Government fident that a reputation for quality                                                         which the island is justly famous.

      Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content
Distributed by USA TODAY                                                                              Our World                                                                              Tuesday, July 6, 2004                   4

Trinidad & Tobago
Trinidad and Tobago’s developmental model combines public and private involvement, and inward investment is encouraged in all areas

The Caribbean trading giant is
awakening to expansion
Continued from page 1                                                                                              a reputation as an excellent in-
tourism sectors with the im-                                                                                       vestment site for internation-
plementation of new policies                                                                                       al businesses. “We believe the
and strategies.                                                                                                    climate here is one that is
   Currently top of the agenda,                                                                                    proactive. We look forward to
however, is the capital city’s                                                                                     the U.S. expanding its invest-
bid to host the Permanent Sec-                                                                                     ment profile in Trinidad,” says
retariat of the Free Trade Area                                                                                    Knowlson W. Gift, the Minis-                    FRANKLIN KHAN                            WASA is laying
of the Americas (FTAA). Lo-                                                                                        ter of Foreign Affairs.                         Minister of Works                   the foundations of water
cal authorities – and many oth-                                                                                       Regional developments such                     and Transport                       treatment and supply
er Caribbean nations – are                                                                                         as the FTAA and the forth-
convinced of Port of Spain’s                                                                                       coming CARICOM Single
suitability as the natural home
of the FTAA, since Trinidad
and Tobago boasts a healthy
                                                                                                                   Market and Economy (CSME)
                                                                                                                   are geared to strengthen
                                                                                                                   Trinidad and Tobago’s posi-
                                                                                                                                                             At the doors
economy, stable democracy
and a highly-skilled workforce.
   “Trinidad and Tobago feels
                                                                                                                   tion within the area. “We are
                                                                                                                   the most important trading
                                                                                                                   partner in the CARICOM
                                                                                                                                                             of infrastructure
confident that we can gain the
support of the majority of the
countries in the region,” says
Patrick Manning, the Prime
                                                                                                                   countries,” says Mr. Gift.
                                                                                                                   “More foreign investment in
                                                                                                                   Trinidad and Tobago con-
                                                                                                                   tributes to the overall economic
Minister. Port of Spain has sev-                                                                                   health of the rest of CARI-              s VISION 2020 aims to make the development of Trinidad and
eral advantages over Miami,                                                                                        COM.” While underlining the              Trinidad and Tobago a fully de- Tobago so BWIA struggles can-
another strong contender, such                                                                                     importance of the country’s re-          veloped nation by that year, and one not be seen in isolation,” says Mr.
as for instance a level of secu-                                                                                   lationship with the U.S., he de-         of the major planks in the devel- Khan. Apart from new routes to
rity that Miami is unable to                                                                                       fends the concept of                     opment process is the improve- the U.S. and Latin America, the
provide. Also, one of the                                                                                          preferential treatment for               ment and extension of the country’s administration sees potential for
FTAA’s primary objectives is                                                                                       smaller economies in relation            infrastructure. Working in five- an increase in cargo routes and the
the economic development of                                                                                        to their main exports.                   year planning cycles, the Trinidad development of a link between
the Caribbean sub-region,                                                                                             Trinidad and Tobago, says             and Tobago government is pulling Africa and North America. To-
something which could be fos-                                                                                      the Prime Minister, is seeking           out all the stops to achieve the tar- bago attracts more tourism, and
tered by a more balanced dis-                                                                                      to expand its energy sector              get. “The biggest challenge right the airport on the island is also due
tribution of multilateral                                                                                          products. Since 2000 Trinidad            now is to upgrade the road net- for an expansion to handle the in-
institutions.                                                                                                      and Tobago has been the main             work,” says Franklin Khan, the crease in domestic and interna-
   On the other hand, Miami                                                                                         source for over 66 percent of           Minister of Works and Transport. tional flights.
has better facilities. “We know       An increasingly proactive climate is the runway for business take-off         the U.S.’s Liquefied Natural               This will be tackled on two          Developed nation status is close-
                                                                                                                    Gas (LNG) imports, and there            counts: firstly, the upgrading of ly linked to water supply, and the
                                                                            that we have some infrastruc-          is co-operation between the              the existing system, and secondly, Water and Sewerage Authority of
                                                                            ture challenges here and we            U.S. Department of Energy and            a major expansion into other areas. Trinidad and Tobago (WASA) is
                                                                            are embarked on major de-              the Trinidad and Tobago Min-             At present, most trans-
                                                                            velopment programs,” says              istry of Energy and Energy In-           portation links and ser-
                                                                                                                                                                                         The country’s aware of its role in im-
                                                                                                                                                                                                            plementing Vision 2020.
                                                                            Mr. Manning. As part of a ma-          dustries in the areas of                 vices center around the          biggest        The company manages
                                                                            jor upgrade of the transporta-         exploration, production and              capital, Port of Spain. challenge now the water for the indus-
                                                                            tion system, two airlines have         marketing of natural gas. He             Current plans foresee        is to build up trial sector and the scope
                                                                            been merged to provide a               dismisses the idea that the              the construction of             the road        of its work is immense.
                                                                            strong regional carrier with a         country is too dependent on oil          three major highways            network         “We operate on a dif-
                                                                            subsequent expansion of des-           and gas exports. The manu-               over the next three                             ferent scale when com-
                                                                            tinations and increase of air-         facturing of LNG, ammonia,               years: the first will be a four-lane pared to the rest of the Caribbean,”
                                                                            lift and capacity.                     methanol, and iron and steel             dual carriageway in the south- says Errol Grimes, the company’s
                                                                               Trinidad and Tobago’s de-           show the country’s abilities to          western part of Trinidad, opening Chief Executive Officer. Chal-
                                                                            velopmental model is a com-            diversify its energy industry            up the LNG region of Point Fortin lenges include replacing old net-
                                                                            bination of public and private         profile, while improvements in           and leading to the new industrial works with modern pipes and
     PATRICK MANNING                     KNOWLSON W. GIFT                   involvement, and inward in-            other economic areas show that           estate planned at La Brea; the oth- upgrading treatment plants. As
       Prime Minister                   Minister of Foreign Affairs         vestment is encouraged in all          Trinidad and Tobago can be a             er two will open up the eastern part WASA deals both with treatment
                                                                            areas. The country has earned          multi-sector player.                     of the island.                        and supply, its environmental ob-
                                                                                                                                                               The nation is hoping to host the jectives are clear. “We don’t allow
                                                                                                                                                            FTAA headquarters. “The geog- our rivers and streams to be cont-

Commerce cornerstones lead market                                                                                                                           raphy is right, we are at the aminated because we are also re-
                                                                                                                                                            doorsteps of the Americas,” says sponsible for the production of
                                                                                                                                                            Mr. Khan. The strategic impor- water,” says Mr. Grimes. The main
s MOST of Trinidad and Toba-          Chairman of Atlantic LNG, the         player in the economy, focusing        on investment in the development         tance of the airport to this aim is aim in line with Vision 2020 is
go’s inward investment to date        leading suppliers of natural gas      on real estate as well as infra-       of information technologies,             not underestimated, and there are “water supply that is 24 hours, sev-
has been attracted to the energy      to the U.S.                           structure. Activity in this area is    telecommunications, and inter-           many changes underway. “The en days a week,” he adds.
sector, which produces more than         Developments in the sector in-     high, with improvements sched-         net infrastructure. There are plans      ramp will be extended, the termi-
70 percent of the country’s ex-       clude the construction of a new       uled for roads, airports and ports.    to open the telecommunications           nal facility for international pas-         USEFUL WEBSITES
ports. Indeed, its extensive oil      industrial estate on the western      Port of Spain, for instance, will      sector to competition, starting this     sengers and the domestic operations
and natural gas reserves have         coast, with a fabrication yard ca-    be privatised later this year, and     year. Tourism is a growing sec-          will be expanded,” says Linus             CARICOM:
made it the most industrialised       pable of building large offshore      the country’s other ports are mak-     tor, although not proportionately        Rogers, the Chairman of the Air-          Trinidad and Tobago
country in the Caribbean. Alead-      structures for energy exploration     ing constant improvements. “On         as important as in many other            ports Authority. Even the car park       Government:
ing performer over the past few       and production. The road net-         the port side, as the economy          Caribbean islands. Financial ser-        is due for an overhaul and increase
years has been the booming nat-       work is being extended at the         grows obviously trade will in-         vices are seen as ripe for expan-        in capacity.                              Trinidad and Tobago Stock
ural gas sector, and fears that re-   same time to ensure adequate in-      crease,” says Minister of Works        sion; a policy reform of the                Handling more passengers al-          Exchange:
serves may be running out are         frastructure support, and invest-     and Transport Franklin Khan.           financial sector reflects the coun-      so depends on the carriers, and as        Trinidad and Tobago News:
misplaced, according to experts.      ment opportunities in this sector        Trinidad and Tobago is the          try’s aspirations to becoming a          well as encouraging more inter-          www.trinidadandtobagonews.
“As demand increases so does          remain many and varied.               strongest trading economy in the       major player in the region.              national carriers to fly to the is-      com
supply,” says John P. Andrews,           Construction is the next biggest   Caribbean. “We are the most vi-           Investment is encouraged in           lands, the government is                  Tourism and Industrial
                                                                            brant of the islands in the region,”   all sectors. “What we try to do          supporting the newly restructured        Development Company of
                                                                            says Minister of Foreign Affairs       here in Trinidad and Tobago is           national airline, BWIA, to ensure        Trinidad and Tobago
                                                                            Knowslon Gift. Indeed, 80 per-         to make it a safe investment des-        services continue no matter what.
                                                                            cent of trade within CARICOM           tination,” says Mr Gift.                 “Air transportation is strategic to
                                                                            involves Trinidad and Tobago,
                                                                            and its development is therefore                   TOURISM
                                                                            inextricably linked to the devel-
                                                                            opment of the region. Commerce
                                                                            between the country and the U.S.
                                                                            is also strong, mainly due to en-
                                                                                                                   Untouched potential of a different Caribbean
                                                                            ergy exports, and the develop-         s TOURISM does not play as large                                               go has the strongest manufactur-
                                                                            ment of air and sea links between      a role in the economy of Trinidad and                                          ing sector in the Caribbean, with
                                                                            Trinidad and Tobago and Latin          Tobago as it does in the economies                                             highly competitive goods in neigh-
                                                                            America is expected to boost trade     of other Caribbean nations but that,                                           boring countries.
                                                                            flow in that direction.                says Vishnu Dhanpaul, is because the                                              Tourism is not being forgotten.
                                                                               Within the Vision 2020 remit        country has more options than its                                              TIDCO is promoting a differentiat-
                                                                            is the promotion of investment         neighbors. Mr. Dhanpaul is the Pres-                                           ed tourism product, based on the
                                                                            opportunities to strengthen the        ident of the Tourism and Industrial                                            country’s rich cultural heritage. “We
                                                                            country’s position as the manu-        Development Company of Trinidad                                                are selling our diversity,” says Mr.
                                                                            facturing center of the Southern       and Tobago Ltd. (TIDCO), an or-                                                Dhanpaul. The refocusing of the in-
                                                                            Caribbean. Agriculture has an          ganisation whose overwhelming                                                  dustry is based on two concepts: the
                                                                            important part to play, and the        mandate is the promotion of Trinidad                                           construction and development of
                                                                            government plans to strengthen         and Tobago in order to attract for-     TIDCO promotes the country’s           large-scale facilities and resorts, and
                                                                            the mechanisms involved in the         eign direct investment (FDI) to all     differentiated tourism attractions     eco-tourism for low impact areas.
                                                                            transporting and marketing of          sectors of the economy.                                                        “Tobago is a tourist paradise un-
                                                                            agricultural output. Here too the         Their past record is impressive:     Trinidad and Tobago is the only        touched,” says Mr. Dhanpaul. He
                                                                            current surge in infrastructure        the country has managed to bring        country in the Caribbean that has      sees the country’s comparatively late
                                                                            renovation and expansion will          over more than $5 billion within        investment status.                     entry into the tourism market as a
                                                                            provide benefits.                      the last five years. “That makes us       TIDCO is also involved in find-      complete advantage, as it can learn
                                                                               Vision 2020 aims to transform       the second-largest recipient of U.S.    ing new markets for the country’s      from the mistakes and successes of
The strongest trading economy in the Caribbean, Trinidad and                Trinidad and Tobago into a knowl-      FDI in the western hemisphere af-       exporters. Although it is an oil and   its Caribbean neighbors with longer-
Tobago is involved in 80 percent of trade within CARICOM                    edge-based society, with a focus       ter Canada,” says Mr. Dhanpaul.         gas economy, Trinidad and Toba-        established tourism industries.

    Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content
5   Tuesday, July 6, 2004                                                                            Our World                                                                                  Distributed by USA TODAY

Puerto Rico
                                                                                                                                  A shift from manufacturing to
                                                                                                                                  a knowledge-based economy is
                                                                                                                                  keeping U.S. ties strong
                                                                                                                                                                                                 High voter
Vision 2025                                                                                                                                                                                      people’s
unites sectors                                                                                                                                                                                   choice
for development                                                                                                                                                                                  s SINCE 1898, when
                                                                                                                                                                                                 Spain ceded Puerto Rico
                                                                                                                                                                                                 to the U.S., the island
                                                                                                                                                                                                 has remained an
Continued from page 1                lieves Mr. Segarra, is the model                                                                                                                            unincorporated U.S.
says none have moved away from to follow. He is one of the engi-                                                                                                                                 territory. Its people
the island because of the change. neers of Vision 2025, an ambi-                                                                                                                                 were granted American
“On the contrary, in the last three tious long-term plan which sets                                                                                                                              citizenship in 1917 and
years we have accomplished over out the course for the country’s                                                                                                                                 have been electing their
$2.2 billion in investment,” he economic and social develop-                                                                                                                                     own governor since
says. He does, however, under- ment. The plan also takes in in-                                                                                                                                  1948. On November 2
line the need for Puerto Rico’s frastructure and natural resources                                                                                                                               this year, islanders
next administration to maintain development, and is based on the                                                                                                                                 return to the polls to
and develop improved incentives concept of joint responsibility                                                                                                                                  vote once again.
for attracting companies.            from the public, private, and aca-                                                                                                                          New Progressive Party
   The main factors that are forc- demic sectors in order to see it                                                                                                                              (NPP) candidate Pedro
ing Puerto Rico to de-                         through.                                                                                                                                          Rosselló has held the
velop a new approach          Redefining         José J. Villamil,                                                                                                                               post already – the NPP
are a decrease in com- ‘the concept of President of Estudios                                                                                                                                     has won five out of the
petitiveness compared       Puerto Rico’ Técnicos, believes that             The Puerto Rican government is investing heavily in short-term infrastructure projects                              last eight elections. Dr.
with countries such as maintains high Puerto Rico primarily                                                                                                                                      Rosselló believes Puerto
Ireland, Chile, and             foreign        needs to develop the          cus on promoting that type of ac-          In the short term, however, pub-   fidence in the private sector is      Rico is ready to become
Singapore; the shift of      investment        capacity to gauge mar-        tivity,” he says. The existence of      lic construction could be the en-     beginning to rise, with new in-       the 51st U.S. state. “The
the world’s manufac-                           ket changes and the           a financial infrastructure, a strong    gine of economic recovery. The        vestments being made in ma-           economy of every U.S.
turing base eastwards, namely to flexibility to respond to them. He          financial sector, and internation-      prevailing recession in both the      chinery and equipment. Puerto         territory has improved
China; and the creation of trade points out that while Puerto Ri-            al banking laws suggest that Puer-      U.S. and Puerto Rico over the         Rico has experienced a moder-         when it has become a
agreements such as the Free Trade co is losing out to countries with         to Rico could also become an            past two years has led to a decline   ate sustained economic rebound,       state,” he says.
of the Americas Act (FTAA), a lower minimum wage, for ex-                    exporter of advanced services.          in private-sector projects. The       and economic growth for the fis-        Aníbal Acevedo Vilá
which grants other countries priv- ample, it still has many advan-              But first it needs to restructure    government’s response has been        cal year is expected to be around     is the candidate for the
ileged access to U.S. markets.       tages, particularly in certain          its economy from public to pri-         to inject as much money as pos-       three percent.                        incumbent Popular
   The most obvious solution and added-value industries. “We have            vate enterprise. “It is fundamen-       sible into the economy, and it has      Mr. Villamil is confident of the    Democratic Party
one that is currently under way full access to funds of the U.S.             tal that the private sector assumes     invested $7.9 billion in infra-       country’s capacity for recovery.      (PDP), which advocates
is an economic shift from man- National Science Foundation and               a more important role to define         structure projects as part of sev-    The most urgent issue is perhaps,     voluntary association
ufacturing to technology. A other organizations for clinical                 the economic agenda of the coun-        eral short-term initiatives. Now      he says, “to redefine the concept     with the U.S. He
knowledge-based economy, be- testing purposes. We have to fo-                try,” says Mr. Villamil.                it seems as though investor con-      of Puerto Rico”.                      believes Puerto Rico’s
                                                                                                                                                                                                 future lies in becoming
                                                                                                                                                                                                 the leader of

Traditional manufacturing holds its own with                                                                                                                                                     commercial and service
                                                                                                                                                                                                 exports for the
                                                                                                                                                                                                 Caribbean and Latin

breakthroughs in new areas of success                                                                                                                                                            America. If elected, he
                                                                                                                                                                                                 would make this public
                                                                                                                                                                                                 policy. “We do things
s PUERTO RICO’S geograph-                                                                                            video system, used extensively by to Rico Technoeconomic Corri-             the American way, but
ic and political proximity to the                                                                                    the local banking industry.         dor (PRTec), a non-profit orga-         in Spanish and with the
U.S. have helped it to build up a                                                                                       ACT president Eugene S. Hud- nization that manages the IT and            Latin culture,” he says.
strong manufacturing base, and                                                                                       ders believes more help should be medical devices clusters. “We at            Puerto Rico has one of
firms setting up business on the                                                                                     offered to firms such as his. “Be- PRTec identify the areas in which        the highest records of
island have done much to help in-                                                                                    cause we have lost Section 936, Puerto Rico has to focus and de-            voter participation in
dustrialization and infrastructure                                                                                   the local government should fo- velop to move on to a knowl-                election processes in the
development. The U.S. remains                                                                                        cus on giving those benefits to lo- edge-based economy,” says Iris          world – turnout in 1992,
the island’s main trading partner.                                                                                   cal companies that are exporting,” Santos, Vice-President/General           1996, and 2000 was 84.8
But as incentives – and world                                                                                        he says.                            Manager (Americas Hub) of HP            percent, 82.8 percent and
markets – have changed, the types                                                                                       The general manager and CEO Caribe Ltd Ink Supplies Busi-                82.3 percent respectively.
of industry showing the best re-                                                                                     of Avant Technologies, Abelardo ness. For this, she believes there          Whatever the outcome
sults have been changing too. At                                                                                     M. Ruiz, agrees that local indus- must be a synergy between the             this time, it is Puerto
present, value-added sectors such                                                                                    try should be supported. He would government and the private and            Ricans who will decide.
as pharmaceutics are in a very                                                                                       like to see more focus on the mar- academic sectors.
strong position.                                                                                                     keting aspect, as he is en-
   The health industries in all their       EUGENE S. HUDDERS                     ABELARDO M. RUIZ                   tirely confident in Puerto
ramifications are expanding huge-               President of                        General Manager                  Rico’s capabilities. “We
ly, and the value of exports is              Advanced Computer                     and CEO of Avant                  feel we have all the tools
constantly increasing. Pharma-                  Technology                            Technologies                   – knowledge, people,
ceutical production is one eco-                                                                                      products and services – to
nomic sector that will not be           attract more investment, way be-        But some more traditional man-       win!” he says.
adversely affected by the repeal        yond the tax incentives,” he adds.   ufacturers are still showing great         One step that is being
of Section 936. “Puerto Rico is            Flexible Packaging Group has      capacity for progress and adapta-       taken is the grouping of
going to remain a great center for      been changing its products in line   tion. Agood example is Industrias       industries. “We have re-
the health industry,” says William      with the times, and has touched on   Vassallo, the local leader in PVC       alized that industries
Riefkohl, Executive Vice-Presi-         the health industry. Among other     products. Over the years, thanks        should be developed
dent of the Puerto Rico Manu-           things, the company makes med-       to a steady stream of new products      along clusters. That is
facturers’Association (PRMA), a         ical devices. “Our five-year plan    and stringent quality control, it has   the development strate-
non-profit organization which           is to grow a minimum of 10 per-      created a strong market and brand-      gy of Puerto Rico now,”
works toward strengthening the          cent annually,” says Carlos Casel-   name recognition throughout the         says Mr. Riefkohl. He is
industrial environment and in-          las, the firm’s president. He too    Americas, including the U.S.            aware that the removal of
creasing competitiveness. “Puer-        foresees an increase in the phar-                                            tax incentives could act
to Rico is working rapidly to           maceutical and health sectors.       Innovative cluster                      as a brake for potential
                                                                             development showcases                   investors, but he is quick
                            ECONOMIC DATA                                                                            to point out that federal
                                                                             technology potential                    legislation allows any
   GDP composition by sector:           beverage concentrates,               High technology is another in-          American company to
  agriculture: 1%; industry: 45%;       medical equipment                    dustrial sector with great potential,   establish operations any-
  services: 54%                         U.S. 88.2%, UK 1.5%, Dominican       and local firms show talent for         where in the world and
                                        Republic 1.4% (2001)                 creating innovative products. Ad-       keep the profits. He
   Industries:                                                               vanced Computer Technology              hopes to attract investors
  pharmaceuticals, electronics,           Import commodities /               (ACT) has developed a product           with other factors, such
  apparel, food products, tourism       partners:                            called ‘C\TREK’, which finds            as the high level of edu-
                                        chemicals, machinery and             problems in communications sys-         cation in Puerto Rico and
    Export commodities /                equipment, clothing, food, fish,     tems used by larger companies. It       the fact that English is
  partners:                             petroleum products                   is now being launched in the U.S.,      spoken.
  chemicals, electronics, apparel,      U.S. 53.5%, Ireland 16.3%,           Latin America, and Europe, and the         Hewlett-Packard,
  canned tuna, rum,                     Japan 4.5% (2001)                    firm is looking for distributors.       which has had opera-
                                                                             Avant Technologies has developed        tions on the island since
SOURCE: THE WORLD FACTBOOK / CIA                                             Video Sentinel, a surveillance          1980, is behind the Puer- Synergy between private and academic sectors signals technology advances

    Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content
Distributed by USA TODAY                                                                               Our World                                                                             Tuesday, July 6, 2004                     6

investment spurs
economic lift
s INCREASED spending on                 are the Transhipment Port of
public works in an election year        the Americas and an air trans-
is not unusual. But the current ad-     fer center in Aguadilla. A high-

                                                                                                                                                                                                                                              LEMA DEVELOPERS & ASSOCIATES, S.E.
ministration has been pumping           way will connect the two and
billions into infrastructure pro-       could open the way for the de-
jects over the course of its four-      velopment of added-value in-
year term. This has succeeded in        dustries along the route, says
producing a moderate econom-            the secretary.
ic recovery, and at the same time         There are plans to develop
providing a range of alternative        the U.S. naval station which
investment incentives.                  closed at the end of March in-
   Puerto Rico’s road system is         to several areas, including a sci-
already efficient, so the focus         ence park, a harbor town with
for new spending is elsewhere.          tourism facilities, and an eco-        Lema Developers & Associates’ San Geronimo Caribe Project is a glowing example of the nation’s ongoing urban revitalization
“We are transferring our efforts        tourism reserve.
to collective transportation, in-         Another new program is the           contributive incentives to de-      a company which administrates             Lema has built more than              Much of it has already been
cluding industrial freight and          revitalization of the downtown         velop housing and commerce,”        construction projects. He still         1,000 houses, and is engaged            allocated. “Construction is a
passenger cargo,” says Fer-             areas in Puerto Rico’s cities.         says Mr. Fagundo.                   finds that obtaining permits can        in a huge project which will in-        high-risk business, but it cre-
nando Fagundo, Secretary for            “We want to attract people and           Arturo Madero is the presi-       be a problem, although signif-          clude a 264-room hotel, vil-            ates satisfaction, employment,
Transport and Public Works.             businesses, so we are fixing the       dent and managing partner of        icant strides have been made in         las, luxury apartments, and a           and opportunities, says Mr.
Two major projects under way            physical facilities and offering       Lema Developers & Associates,       cutting through the red tape.           massive entertainment center.           Madero.

Flexibility and scope add up World-class tourism position
to a booming finance sector maintained by diversification
s MANUFACTURING may states on the U.S. mainland and                          with potential impact on financial    s PUERTO RICO’S tourism in- pionship courses) and tennis (more                  are expected to keep rising. The
have been Puerto Rico’s driving had established its North Amer-              services is the Legislature’s pro-    dustry has a critical role to play in than 100 courts). With its 272 miles      Hotel Development Corporation
force in the past, and technology ica headquarters in Chicago. Oth-          posed amendments to the Puer-         the country’s economic transition of coastline and hundreds of beau-            exists to assist investors in devis-
could well be its future, but the er entities, such as First                 to Rico Internal Revenue Code.        from agribusiness and manufac- tiful beaches, the island provides               ing an adequate capital structure
fact is that, in 2003, the coun- BanCorp., R&G Financial Corp.,              The amendments would impose           turing to the information technolo- ample opportunities for deep-sea            plan suited to the specific require-
try’s economy was boosted by Oriental Financial Group, and                   a 10 percent withholding tax at       gy and service sectors. The fishing, kayaking, scuba diving,                    ments of each project.
the financial industry’s growth Citibank Puerto Rico have also               source on interest from new com-      industry’s growth potential, com- horseback riding, snorkelling, wind-             Puerto Rico is easily accessible
in the commercial, mortgage, and made inroads in both the North              mercial loans made by offshore        bined with the Puerto Rico Tourism surfing and parasailing. For those           to visitors with its three major air-
securities sectors.                  and South American financial            corporations and partnerships that    Company’s (PRTC) determination with a different kind of sport in                ports – the island boasts the high-
   According to the Office of the services markets.                          are not engaged in trade or busi-     to make the island a world-class mind, Puerto Rico also offers some             est airlift capacity in the Caribbean
Commissioner of Financial In-          However, such expansion               ness in Puerto Rico. Current com-     destination, is helping to create in- of the most famed casinos in the          and is only three to four hours away
stitutions, assets held by the 11 needs to work both ways. Since             mercial loans from these entities     centives for investors.                  Caribbean. Even shoppers are spec-     from the U.S. mainland. Most ma-
commercial banks serving Puer- 1989, Puerto Rico has had legis-              could be subject to a 5 percent          The PRTC has sev-                                                                           jor U.S. hubs, includ-
to Rico increased from $66 bil- lation in place designed to attract          withholding tax.                      eral strategic goals,                                                                          ing Atlanta, Boston,
lion in December 2002 to $73.6 major international financial ser-               There are voices raised for and    including the addition                                                                         Chicago, New York,
in the third quarter of 2003. In vices companies to the island.              against this legislative change.      of 5,000 hotel rooms                                                                           Philadelphia, and
addition, there were                           This law, known as the        Those in favor – including the        to the country’s ca-                                                                           Washington, D.C., of-
notable gains in mort-          Island’s       International Banking         local Treasury Department –           pacity, and the con-                                                                           fer daily direct service
gage and commercial            strategic       Center Regulatory Act         claim the measure is about lev-       struction of the new                                                                           to San Juan, the capi-
loan disbursements as position is ideal (IBCRA), promotes                    eling the playing field while in-     $416 million Puerto                                                                            tal city. Additional in-
well as in the sale of        for global       deregulation and pro-         creasing tax collections by $25       Rico Convention                                                                                centives for U.S.
securities.                    business        vides incentives that         million a year, pointing out that     Center, which is ex-                                                                           travelers are the fact
   One area which still
has room for maneu-
                            development facilitate financial
                                               transactions with non-
                                                                             U.S. and foreign companies lack-
                                                                             ing a physical presence in Puer-
                                                                                                                   pected to be ready by
                                                                                                                   August 2005. At
                                                                                                                                                                                                                  visas are not needed
                                                                                                                                                                                                                  and that Puerto Rican
ver is mergers and acquisitions resident individuals and corpo-              to Rico do not pay local taxes. It    580,000-plus square                                                                            culture is bilingual.
(M&A), which many people be- rations through International                   is understandably difficult for any   feet, this will be the                                                                            Puerto Rico’s vi-
lieve will see a boom over the Banking Entities (IBEs) estab-                country to finance its own cred-      largest convention fa-                                                                         brant culture, healthy
next three years. Richard L. Car- lished in Puerto Rico on a tax-            it needs, but liquidity is needed     cility in the Caribbean                                                                        economy, and pro-
rión, Chairman of the Board at exempt basis. Under the provi-                for development. Offshore fi-         and should become a                                                                            tourism government
Popular Inc., one of the country’s sions of the law, income earned           nancial institutions open the mar-    significant driver of                                                                          policies are the key dri-
leading financial services com- by an IBE from offshore activi-              ket to offshore investors,            commercial lodging                                                                             vers of growth in
panies, would like to see this hap- ties is exempt from Puerto Rico          including venture capitalists, who    demand in the future, as well as           A broad range of environments        tourism, and the sector is destined
pen. “It would make sense for a income taxes, branch profit tax-             are attracted to the higher return    creating numerous employment and              and 272 miles of coastline        to become an increasingly impor-
little bit more consolidation to es, and municipal license taxes.            on local investments, and they        investment opportunities in the ad-          facilitate the promotion of        tant part of the country’s overall
take place,” he says.                Moreover, dividends, profit par-        give local companies the chance       jacent Convention Center District.         nature and adventure tourism         economy. The PRTC, in coordina-
   Popular Inc. is one of many lo- ticipation, or other distributions        to acquire other sources of fund-        On March 31 the U.S. Navy                                                    tion with the Department of Eco-
cal companies that have suc- to shareholders, partners, or own-              ing offshore. What is perhaps         closed down the Roosevelt Roads tacularly catered for; Plaza Las                nomic Development Corporation,
cessfully developed overseas ers of an IBE are completely ex-                more important is that the injec-     Naval Base in Ceiba. This has freed Américas, located in San Juan, is           will continue to facilitate the access
activities. By the end of 2003, empt from all withholding taxes.             tion of large sums of capital into    up 8,600 acres of land, which the the Caribbean’s largest shopping              of economic and tax incentives to
the firm had 96 branches in six        A current controversial issue         the local economy enhances Puer-      government proposes to divide in- center with more than 186 stores.             investors in order to consolidate the
                                                                              to Rico’s competitiveness in the     to five different areas, including          Investment in the sector is ac-     country’s position as a world-class
                                                                              global market.                       some major tourism development tively encouraged with the aim of                tourism destination.
                                                                                 Those who oppose the with-        projects in the medium- and long- making tourism one of Puerto Ri-
                                                                              holding tax believe Puerto Rico      term. The existing network of piers co’s primary sources of economic
                                                                                                                                                                                                         USEFUL WEBSITES
                                                                              could be seen as adopting pro-       at the base has the potential to be- revenue. A Tourism Incentive Pro-                Government of Puerto
                                                                              tectionist measures at a time        come a center for nautical tourism. gram, created under the Puerto Ri-              Rico:
                                                                              when most other countries are ac-    In addition, over 500 acres have co Tourism Development Act of                        Department of State:
                                                                              tively seeking offshore invest-      been slated for devel-                              1993, offers a flexible
                                                                              ment. Potential investors could      opment into a harbor                 Sector         package of specific tax           Senate of Puerto Rico:
                                                                              be discouraged from entering a       town, with hotels, res-           investment        credits and exemption 
                                                                              market that they perceive as ex-     idential complexes, re-             actively        benefits to potential in-         Puerto Rico Federal Affairs
                                                                              pensive and bureaucratic.            tail outlets and so on.         encouraged by vestors, while the creation           Administration:
                                                                                 Alfredo Padilla, the Commis-         In line with govern-            incentive        of a Fast Track Center in
                                                                              sioner of Financial Institutions,    ment plans to diversi-                              the Planning Board has            Department of Finance:
                                                                              is clear about the advantages to     fy within the tourism
                                                                                                                                                      programs         helped speed up the ap-
                                                                              potential investors in Puerto Ri-    sector, almost 50 percent of the plication process for infrastructure                 Puerto Rico Manufacturers’
                                                                              co’s financial sector. The flexi-    land, which is eco-sensitive, has project developments.                             Association:
                                                                              bility, diversity, and scope of      been earmarked for the creation of          The hotel sector is coming in for
                                                                              operating as an IBE, says the Of-    an eco-tourism park. Nature and specific targeting, with the aim of                   Puerto Rico Tourism
                                                                              fice’s website, make Puerto Ri-      adventure tourism is already being creating ever more accommoda-                    Company: www.
                                                                              co the ideal location for entities   promoted by the PRTC, which high- tion capacity. During the 2003 fi-      
                                                                              involved in global business de-      lights the country’s range of geo- nancial year, hotel occupancy                      Elections in Puerto Rico:
Last year saw the economy boosted by financial industry growth               velopment.                            graphical          and         climatic figures showed a solid increase of          http://electionspuertorico.
                                                                                                                   environments as having something 7.9 percent, rebounding from the                   org
                                                                                                                   to suit every traveler.                  downturn experienced the previ-              General country
                                                                                                                      Sports-based tourism is also an ous year as a result of the Septem-              information:
  High technology…from concept to end product                                                                      attraction on the island, which has ber 11 attacks on the U.S. mainland.  
                                                                                                                   excellent facilities for golf (12 cham- As capacity increases, the figures

  Patent no: US 6476858 B1
                                Avant Technologies, the foremost
                                    authority in networked digital
                                  surveillance systems, introduces
                                   Video Sentinel, the first digital
                                 system specialized in transaction
                                matching for financial institutions.
                                 The procedure allows authorized
                                users to remotely search digitally
                               stored transaction information and
                                 video for authentication of users
                                          and fraud investigations.

                                      PO Box 9359, Caguas, PR 00726-9359, Tel: 787 746 9191, Fax: 787 746 7131
  Distributors are welcome                                    E-mail:,

     Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content
7   Tuesday, July 6, 2004                                                                                Our World                                                                                       Distributed by USA TODAY

Mexico                                                                              Open and focused reforms have
                                                                                    maintained economic stability and
                                                                                    increased market competition

Economic and social policies
attract much investor interest
                                        that we have ahead of us is to pro-       three years has been very interest-    namics for a more equal distribu-
                                        duce the changes that the country         ing, much better than it was in pre-   tion of the country’s wealth – a goal
                                        needs from a structural point of          vious administrations, and we have     the government is also hoping to
                                        view. Things are going well.”             been placed higher with the rating     achieve through the creation of a
                                           Although the economic slowdown         agencies. This would have been dif-    more federalized state, with greater
                                        in the U.S. has negatively influenced     ficult to achieve some years ago.      administrative control being grant-
                                        growth in Mexico in the past few          This has allowed us to have de-        ed to individual regions. Mr. Creel
                                        years, the country remains both po-       creasing inflation – which is now      Miranda says, “Our mission is to
                                        litically and economically stable, as     about 3.5% – the interest rate on      prove that this democratic system
                                        evidenced by its ever-increasing lev-     Mexican treasure bonds is 4%, and      is not only a system that brings more
                                        el of Foreign Direct Investment (FDI)     we have international reserves of      economic, social, and political free-
                                        inflows, established at $15 billion       over $50 billion.”                     dom, but that it is also an efficient
                                        for 2003. Furthermore, Mexico has            There are still challenges ahead    system from an economic point of
                                        not only avoided the financial crises     for President Fox and his adminis-     view. It is a system that generates
                                        rampant in Latin America since the        tration. Reforms targeting the en-     jobs, that increases salaries, and that
                                        dawn of the new millennium, but has       ergy sector and tax and labor laws     allows us to make our markets more
      SANTIAGO CREEL                    managed to reign in inflation and re-     are intended to further modernize      competitive and more attractive for
          MIRANDA                       duce its current account deficit to       the economy and create the dy-         investors.”                               Mexico is striving for a more equal distribution of wealth
       Secretary of State               1.5% of GDP.
                                           The peso remains stable and
sTHE YEAR2000 was a landmark
in the history of Mexican politics as
President Vicente Fox and his Na-
                                        the country’s external debt has
                                        been reduced, continuing a pos-
                                        itive trend set by the full and
                                                                                  An impressive global presence
tional Action Party rode to victory     ahead-of-schedule repayment of                                                   Continued from page 1                   border crossing, and security. If we        BILATERAL TRADE
in presidential elections that ousted   its IMF debt in 2000. Oil exports                                                U.S. and Mexico have been work- can harmonize standards and fi-
the longstanding Institutional Rev-     now typically account for less                                                   ing together on immigration reforms. nancial systems, eventually we can
olutionary Party (PRI), which had
governed the nation since the par-
                                        than 10% of total foreign ex-
                                        change earnings and only 6% of
                                                                                                                         Mexicans living in the U.S. have use a common currency. We need
                                                                                                                         been a significant boost to the Mex- to move beyond trade now and in-
ty’s inception in 1929. Heralded as
the ‘Administration of Change’,
                                        exports as a result of increased
                                        trade for the country through the
                                                                                                                         ican economy through repatriated tegrate North America so that it be-
                                                                                                                         funds that are sent back home to comes a more efficient region and
                                                                                                                                                                                                          trade and
President Fox and his government
came to power on promises of in-
                                        North American Free Trade
                                        Agreement, which Mexico en-
                                                                                                                         their families. Mr. Albert C. Za- a more competitive force when fac-
                                                                                                                         panta, President and CEO of the ing the new blocks such as Europe
creasing Mexico’s competitiveness       tered in 1994, and the emergence                                                 U.S.-Mexican Chamber of Com- and China.”                                         s THE U.S.-Mexico Cham-
and on electorate hopes of a new        of the country’s maquiladora sec-                                                merce, states, “At the end of the day,    Success with NAFTA encour-             ber of Commerce (USM-
political era for the country based     tor – bonded tax-free manufac-                                                   Mexico is our neighbor, and here in aged Mexico to seek further free-            COC) promotes trade,
on stronger multi-party democrat-       turing zones on the U.S. border.                                                 the U.S. we have a huge Hispanic trade deals across the globe, and               investment, and economic de-
ic principles and an end to political      All of this continues to have a fa-                                           population of over 40 million peo- the country has subsequently signed           velopment between the U.S.
corruption.                             vorable affect on Mexico’s sover-                                                ple. Their presence is                             accords with 32 nations       and Mexico – the first such
   Secretary of State Santiago Creel    eign ratings. The three main                                                     strong and will contin-         Mexico is an – including a 2003 agree-           institution to further the in-
Miranda comments, “There has            risk-rating agencies (Standard and                                               ue to grow, and so will operations hub ment with Japan and a                     terests of two nations. In 1996,
been an intense revolution here. We     Poor’s, Moody’s and Fitch) have all                                              our economic relation- for trade with 2001 agreement with the                    the Chamber also established
are coming from a very closed po-       upgraded the country’s standing,                                                 ship with Mexico.”            Latin America, European Union. Mex-                the U.S.-Mexico Cultural and
litical system and we have moved        placing Mexico at investment grade.                                                 On the eve of the tenth         Europe,         ico is an active member       Educational Foundation,
very peacefully to a stable and open    Mr. Creel Miranda states, “Our for-       Future goals may include               birthday of NAFTA,                                 of the Asia Pacific Eco-      which oversees educational
democratic system. The challenge        eign investment rate over the past        harmonizing financial systems          many feel it is time to re-
                                                                                                                                                            and Asia        nomic Cooperation. As         and cultural exchanges de-
                                                                                                                         assess the agreement’s goals and to a result, the country has become an          signed to develop business
                                                                                                                         consider further regional integra- important center of operations for            leaders of the future and fo-
                                                                                                                         tion. Mr. Héctor Rangel Domene, companies who wish to trade with                 ment understanding between
                                                                                                                         president of the Business Coordi- Latin America, Europe, and Asia.               the neighboring countries.
A thriving multi-party democracy                                                                                         nating Council of Mexico, says, “I Finally, the Free-Trade Area of the
                                                                                                                         believe that NAFTA has greatly Americas, to be signed by 2005,
                                                                                                                                                                                                             USMCOC has grown con-
                                                                                                                                                                                                          siderably since the introduc-
s ONE of Mexico’s greatest              in a democracy that was in many           that it must be accompanied by         benefited all three parties and growth will assure Mexico a leading role         tion of the North American
achievements during the past few        ways only symbolic. Below is a            strong political action. He ex-        on investment has been enormous. in what will be the largest free-trade          Free Trade Agreement – from
years has been the nation’s solid       brief look at the main parties in         plains, “In 2006 people will vote      However, we now need an agenda bloc in the world, stretching from                three offices and 250 members
move toward a multi-party democ-        this new political landscape.             less on which candidate is most        for the future that includes migra- Alaska in the north to Cape Horn             in 1993 to some 2000 mem-
racy. Previously, the Institutional        The current governing party is         appealing and more on what that        tion, energy, goods and individual in the south.                                 bers and 15 offices today. Pres-
Revolutionary Party (PRI) held          the National Action Party (PAN),          candidate has to offer. The chal-                                                                                       ident and CEO Albert C.
the reigns of power for 71 years        which proposes greater private sec-       lenge lays in proposals; this is                                                                                        Zapanta says that as a result
                                        tor involvement in the economic           the content that is missing now                                                                                         of President Fox’s reforms,
                                        realm and a reduced role of state         and that is what PRI is working                                                                                         the Chamber has had new op-
                                        in the private sphere. PAN presi-         on – giving the population real po-                                                                                     portunities to facilitate busi-
                                        dent Luis Felipe Bravo Mena com-          litical solutions.”                                                                                                     ness between the two nations.
                                        ments on the opening up of the               The third major party in the                                                                                            He comments, “Becoming
                                        Mexican political system: “Mex-           country is the Democratic Rev-                                                                                          more like the U.S. system,
                                        ico is experiencing a very creative       olution Party (PRD), founded in                                                                                         where Congress has a lot of
                                        moment. Our nation was built un-          1989 by Mr. Cuauhtémoc Cár-                                                                                             players, has added focus,
                                        der centuries of power concentra-         denas, son of former Mexican                                                                                            growth and maturity to the
                                        tion and political strategies of force.   President Lázaro Cárdenas, and                                                                                          Mexican system.We have
                                        We saw modern politics emerge in          President of the Foundation for                                                                                         been able to help not only
                                        the 2000 elections, and for the first     Alternative Democracy and De-                                                                                           our members, but also to fa-
                                        time there is a distribution and bal-     bate. Party President Leonel                                                                                            cilitate communication be-
                                        ance of political power.”                 Godoy says that PRD advocates                                                                                           tween Congress members on
                                           The PRI continues to hold ma-          an open economic system while                                                                                           both sides of the border.”
        CUAUHTÉMOC                      jority in both the senate and in          retaining state control in crucial
         CÁRDENAS                       congress. Party President Rober-          social areas such as health and ed-                                                                                       U.S.-Mexico Chamber
         Moral Leader                   to Madrazo Pintado says that              ucation – an ideology he sums up                                                                                        of Commerce
      and Founder of PRD                Mexico’s new pluralistic system           as ‘sustainable development for                                                                               
                                        is positive for the country, but          social justice.’                       U.S.-Mexican mutual understanding has increased with NAFTA

                                                                                                                            There’s no such thing as “easy” in the
                                                                                                                            Gulf of Mexico. That’s why Pemex chose
                                                                                                                            TenarisTamsa as its partner.

                                                                                                                            Mexico’s Pemex is one of the world’s five largest petroleum companies and a major
                                                                                                                            developer in the highly challenging depths of the Gulf of Mexico. TenarisTamsa
                                                                                                                            works hand in hand with Pemex every step of the way, providing specialized tubes,
                                                                                                                            connections, technical accessories and just-in-time delivery services. Together, we
                                                                                                                            make overcoming the most difficult challenges a routine part of business as usual.
                                                                                                                                                                     Tubular technologies. Innovative services.


    Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content
Distributed by USA TODAY                                                                                   Our World                                                                                     Tuesday, July 6, 2004                    8

                                                                                 International interest sustains
                                                                                 country’s success at FDI attraction
                                                                                 sMEXICO’Skey location in North
                                                                                 America and its proliferation of free
                                                                                 trade agreements (FTA) have made
                                                                                 the country increasingly successful
                                                                                 at attracting Foreign Direct Invest-
                                                                                 ment (FDI). Total FDI for 2002 was
                                                                                 $13 billion. The United States re-
                                                                                 mains Mexico’s principal investor,
                                                                                 providing over 70% of the country’s
                                                                                 total FDI, followed by the Euro-
                                                                                 pean Union. Sectors receiving the
Mexico has one of Latin America’s most extensive transport systems               majority of FDI in 2002 include
                                                                                 manufacturing and financial ser-
                                                                                 vices. Mexico’s entry into the Free
Building a network                                                               Trade Area of the Americas in 2005
                                                                                 will further ensure this FDI inflow
                                                                                 as the country is set to become a lead-
of efficiency with                                                               ing player in what will be the largest
                                                                                 free-trade bloc in the world.
                                                                                     Without a doubt, Mexico’s re-
private investment                                                               ception of FDI has changed con-
                                                                                 siderably since its somewhat
                                                                                 suspicious stance of the 1980s. The
s MEXICO’S transport and com- ico City, as well as services to a                 North American FTA, signed with
munications infrastructure is one of number of destinations in the Unit-         Canada and the United States in
the most extensive in Latin Ameri- ed States. Regular direct flights are         1994, gave way to the emergence
ca. Privatization began in 1995 and available to Europe from the capi-           of maquiladoras, bonded tax free
has since increased efficiency and tal’s international airport, Benito           manufacturing zones on the U.S.
improved service – a trend that is Juarez, where there are also links to         border. Now one of the country’s          World leader TenarisTamsa provides seamless steel pipe products and services to the energy sector
likely to continue as more private the rest of Central and South Amer-           principal sources of foreign ex-
investment is attracted to the sectors. ica. One of President Fox’s core in-     change, these hugely successful in-       services, and listed on the New York, pany’s operational name in Mexi-              heading leadership process within
At present, the nation’s massive net- frastructure proposals has been the        dustries import components and            Buenos Aires, Italian, and Mexican co where it produces seamless tubu-              the steel industry, which enabled
work of roadways (of which over construction of a new international              equipment into Mexico where prod-         stock exchanges, Tenaris has annu- lar products at the Tamsa plant in               the sector’s consolidation.”
one-third is paved) is its best- airport for the capital to help with            ucts are assembled and then exported      al revenues in excess of $3 billion Veracruz. With an annual produc-                   Mr. Vogel says that the end result
developed area in the transport sec- the overflow from Benito Juarez.            tariff-free back into the U.S. market.    and manufacturing operations in tion capacity of 780,000 tons and a                 was eight plants distributed world-
tor, although the country also boasts      Mexico’s telecommunications               With the election of President Fox    Argentina, Brazil, Canada, Italy, workforce of 2,200 employees,                     wide all under the name of Tenaris
more than 22,000 miles of railway. sector was opened up to private in-           in 2000, the trend to welcome for-        Japan, and Venezuela, in addition to TenarisTamsa is the leading sup-               and adds that the consolidation has
Privatization of the railways is ex- vestment in 1990 and increasing             eign investment has only deepened,        its operations in Mexico. The com- plier of seamless steel pipe products            provided great comparative ad-
pected to be completed                             competition has aided         and some of the largest FDI deals         pany represents 13% of                           and services to the do-            vantages: “The first advantage has
by 2006.                      There are plans significantly in the re-           have taken place during this time,        the world production          FTAA entry in mestic energy sector and                been coverage, since we can now
   With nearly 6000                to provide      duction of prices and the     such as the 2001 sale of the Ba-          capacity and 20% of             2005 will        a major exporter of value-         follow our clients’needs in any part
miles of coastline, Mex- Internet access improvement of services,                namex Financial Group to the U.S.-        global trade in seam- cement Mexico’s added products.                               of the world, and this is our priori-
ico also boasts 108 sea-         to all public although penetration still        owned Citigroup for $12.5 billion.        less products, and has          role in the        Vice President of the            ty aim – to be able to provide our
ports, which have been              schools        remains low in the more       Mexico has no restrictions on prof-       sales in more than 60 world’s largest Administrative Board for                      clients with an integrated service
gradually opened to pri-                           remote areas of the coun-     it, royalty, interest payment, or cap-    countries worldwide.
vate investment over the
                                    by 2006
                                                   try. There are digital net-   ital repatriation. Additionally, the         In addition to pipe
                                                                                                                                                        free trade bloc TenarisTamsa Guillermo
                                                                                                                                                                            Vogel comments on the
                                                                                                                                                                                                               by completely redesigning the sup-
                                                                                                                                                                                                               ply chain.” TenarisTamsa is also
last ten years. Tampico and Veracruz works covering 100% of the nation’s         import of inputs, machinery, and          products, Tenaris provides pipe han- restructuring that created the glob-           deeply committed to social devel-
on the Gulf of Mexico are the coun- territory and the government in-             equipment used to produce goods           dling, stocking, and distribution ser- al company. He states, “Tenaris re-          opment and in Veracruz has estab-
try’s most important. Additionally, tends to have Internet access in all         for export is duty free.                  vices to the oil and gas, energy, and sulted from a process started in 1994         lished scholarship programs and
there are over 1800 airports in the public schools by the end of its term            One successful example of a glob-     mechanical industries and is a lead- with the alliance of two companies             worked to improve the public school
country, more than 200 of which in 2006. There are currently ap-                 al company operating out of Mex-          ing regional supplier of welded steel – Tamsa in Mexico and Siderca in              infrastructure, as well as sponsor-
have paved runways. Most major proximately five million Internet                 ico is Tenaris. A world leader in         pipes for gas pipelines in South Argentina, through Techint Group.                  ing various community develop-
cities have direct air services to Mex- users in Mexico.                         seamless and welded steel pipes and       America. TenarisTamsa is the com- From this alliance came a spear-                  ment and cultural initiatives.

                                                                                                                           Michoacan boasts powerful
                                                                                                                           potential as production and
                                                                                                                           logistics center
                                                                                                                           sLOCATED in central west Mex-
                                                                                                                           ico, the State of Michoacan is one
                                                                                                                           of the nation’s undiscovered gems
                                                                                                                           and full of development potential.
                                                                                                                           Michoacan, whose name means
                                                                                                                           ‘home of the fishermen’, is rich in
                                                                                                                           natural resources and centrally lo-
                                                                                                                           cated between the State of Mexico
                                                                                                                           to the east and the Pacific Ocean to
                                                                                                                           the west. The state’s natural beau-
                                                                                                                           ty combines rivers, forests and un-
                                                                                                                           spoiled beaches with pre-classical
                                                                                                                           archeological sites and traditional
                                                                                                                           Indian culture to offer visitors a tru-
                                                                                                                           ly original experience, while boast-
                                                                                                                           ing a soundly developed
                                                                                                                           infrastructure and strong commu-
                                                                                                                           nication links with the rest of the
                                                                                                                           country.                                  Virgin nature offers ecological alternative to traditional beach resorts
                                                                                                                              State Governor Lázaro Cárdenas
                                                                                                                           Batel is committed to the dignified                                                 to its strategic geographical position.
                                                                                                                           development of Michoacan and has                                                    Sixty percent of Mexico’s domes-
                                                                                                                           been as active in promoting its po-                                                 tic market lies within a couple hun-
                                                                                                                           tential as he has been in working to-                                               dred miles of the Michoacan capital
                                                                                                                           wards social development for its                                                    city of Morelia and the Port of
                                                                                                                           four million inhabitants. He com-                                                   Lázaro Cárdenas has the highest
                                                                                                                           ments, “At the end of my term I                                                     growth potential of all Mexican
                                                                                                                           would like to leave the state with a                                                ports for becoming a significant lo-
                                                                                                                           better quality of life and this means                                               gistics and industrial center.”
                                                                                                                           not only guaranteeing access to                                                        Michoacan is also ripe for tourism
                                                                                                                           goods and services but also taking                                                  development. The extraordinary
                                                                                                                           better advantage of our natural re-                                                 wealth of the Tarascan Indian cul-
                                                                                                                           sources. I would like to see Mi-                                                    ture, and its history, customs, and
                                                                                                                           choacan in the future as a state that                                               artwork, already draw large num-
                                                                                                                           knows how to live well, which us-                                                   bers of tourists. The capital, More-
                                                                                                                           es its resources, but at the same time                                              lia, is a beautiful Spanish colonial
                                                                                                                           respects its environment.”                 LÁZARO CÁRDENAS BATEL                    city and a UNESCO World Heritage
                                                                                                                              Michoacan’s economy is based on              State Governor                      Site. Michoacan’s 130 miles of pris-
                                                                                                                           agro-industries, livestock, fishing,            of Michoacan                        tine Pacific coastline, as well as its
                                                                                                                           and forestry, but it also has a sig-                                                abundant virgin forests, offer in-
                                                                                                                           nificant financial services sector and    ed infrastructure for development.        credible potential for a Mexican
                                                                                                                           iron and steel works industry. The        The state’s transport infrastructure      tourism alternative to the tradition-
                                                                                                                           state is an important producer of         includes four airports, one of which      al beach resorts such as Puerto Val-
                                                                                                                           tropical fruits such as mango, pa-        is an international airport, solid road   larta and Acapulco.
                                                                                                                           paya, and limes, and is a world leader    links to the rest of the country, and        Governor Cárdenas comments,
                                                                                                                           in the production and export of av-       over 700 miles of railway. Addi-          “We have to take advantage of the
                                                                                                                           ocados. Mexico’s third largest tim-       tionally, Michoacan is the site of        fact that the beaches in Michoacan
                                                                                                                           ber producer, Michoacan has a large       Mexico’s most important Pacific           are practically virgin with mountains
                                                                                                                           variety of forest species including       port, Lázaro Cárdenas, where the          in the background. There is practi-
                                                                                                                           valuable tropical woods. Mining           state’s iron and steel works indus-       cally no tourism offer there yet and
                                                                                                                           has also played an important part in      try is also located. Hence, Michoa-       as such represents a great opportu-
                                                                                                                           the state’s economy and it has sub-       can has a high potential for              nity for investment. We would al-
                                                                                                                           stantial iron ore deposits, as well as    becoming a regional logistics hub.        so like to develop a tourism that is
                                                                                                                           silver, lead, copper, and zinc.              Governor Cárdenas states, “We          more ecology oriented and that pro-
                                                                                                                              Michoacan is one of the Mexi-          have been working hard to promote         motes the colonial and pre-Hispanic
                                                                                                                           can states with the best-consolidat-      Michoacan as a logistics center due       heritage of the state.”

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