Identifier
Created
Classification
Origin
06MEXICO6413
2006-11-09 16:22:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Mexico
Cable title:
WHO ARE MEXICO'S MONOPOLISTS?
how-toVZCZCXRO4906 PP RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM DE RUEHME #6413/01 3131622 ZNR UUUUU ZZH P 091622Z NOV 06 FM AMEMBASSY MEXICO TO RUEHC/SECSTATE WASHDC 4147 INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE PRIORITY RUEATRS/DEPT OF TREASURY WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RHEBAAA/DEPT OF ENERGY WASHINGTON DC RUEHC/DEPT OF LABOR WASHDC
UNCLAS SECTION 01 OF 03 MEXICO 006413
SIPDIS
SENSITIVE, SIPDIS
FOR WHA/MEX, WHA/EPSC, AND EB/IFD/OMA
USDOC FOR 4320/ITA/MAC/WH/ONAFTA/ARUDMAN
TREASURY FOR IA (ALICE FAIBISHENKO)
STATE PASS TO USTR (EISSENSTAT/MELLE)
STATE PASS TO FEDERAL RESERVE (CARLOS ARTETA)
STATE PASS TO JUSTICE DEPARTMENT ANTI-TRUST DIVISION
(CALDWELL HARROP, KIMBERLY GARNETT, ANNE MARIE CUSHMAC)
E.O. 12958: N/A
TAGS: ECON ELAB EFIN PINR PGOV MX
SUBJECT: WHO ARE MEXICO'S MONOPOLISTS?
-------
Summary
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UNCLAS SECTION 01 OF 03 MEXICO 006413
SIPDIS
SENSITIVE, SIPDIS
FOR WHA/MEX, WHA/EPSC, AND EB/IFD/OMA
USDOC FOR 4320/ITA/MAC/WH/ONAFTA/ARUDMAN
TREASURY FOR IA (ALICE FAIBISHENKO)
STATE PASS TO USTR (EISSENSTAT/MELLE)
STATE PASS TO FEDERAL RESERVE (CARLOS ARTETA)
STATE PASS TO JUSTICE DEPARTMENT ANTI-TRUST DIVISION
(CALDWELL HARROP, KIMBERLY GARNETT, ANNE MARIE CUSHMAC)
E.O. 12958: N/A
TAGS: ECON ELAB EFIN PINR PGOV MX
SUBJECT: WHO ARE MEXICO'S MONOPOLISTS?
--------------
Summary
--------------
¶1. (SBU) Bank of Mexico and likely incoming Mexican
government officials in recent weeks have stressed the
importance of opening key sectors of the economy to more
competition, but have been hesitant to publicly name the
"offending" companies. This telegram spells out which
sectors are dominated by only a few powerful firms, who is
in charge of these companies, and how much of the market
the companies control. End Summary.
--------------
--------------
Summit Participants Highlight Need for Competition
--------------
--------------
¶2. (SBU) At the Monterrey Business Summit on October 30,
2006, Bank of Mexico (BOM) Governor Guillermo Ortiz and
other participants (business representatives, academics,
President-elect Felipe Calderon transition team members,
etc.) underscored the importance of more competition in key
sectors such as telecommunications, transportation,
construction, and financial services. Ortiz stressed that
macroeconomic and financial stability is an important
"theme" in the Mexican economy, one that has been largely
achieved. He said that another key theme is competition.
He emphasized the importance of focusing on monopolies and
how they hinder economic growth and competition by keeping
prices high. Professor and political commentator Denise
Dresser made similar points at the Summit the day before,
and received applause for her comments. Numerous
participants focused on the need to challenge monopolies
and the excessive costs they produce. That said, no one at
the Business Summit would name specific companies or people
(Carlos Slim, etc.). When pressed by a questioner to name
a Mexican company that needs to open up to competition,
Mexican Institute for Competitiveness head Roberto Newell
would only name Coca Cola and Wal-Mart, to the nervous
laughter of the audience.
¶3. (SBU) To facilitate USG understanding of what analysts
are referring to when they talk about Mexican industries
and sectors where competition is abs