ECONOMIC DEVELOPMENT IN MEXICO THROUGH INDUSTRIAL

UNCLAS MEXICO 000864 SIPDIS SIPDIS E.O. 12958: N/A TAGS: ECON EINV MX SUBJECT: ECONOMIC DEVELOPMENT IN MEXICO THROUGH INDUSTRIAL PARKS ¶1. SUMMARY. The Mexican Association of Industrial Parks (AMPIP) celebrates its 30th anniversary in 2006. Composed of private companies, Mexican State Governments and real estate funds, AMPIP promotes economic development by lobbying the government on behalf of its members and promotion of the parks domestically and worldwide. AMPIP believes Mexico's efforts to attract investment would be more effective if investment promotion efforts were concentrated in a single GOM agency. It plans to develop a relationship with the U.S. Foreign Commercial Service (FCS) in order to attract more businesses to Mexico. In the meantime, AMPIP hopes its recent alliance with the U.S. National Association of Business and Industrial Properties and its 12,500 members will improve its international standing and increases the services it is able to offer. END SUMMARY. ¶2. AMPIP wishes to form a stronger relationship with FCS in Mexico in order to provide economic development and industrial park information to trade delegation visits and individual U.S. corporations. Many AMPIP members are located in the consular districts of consulates, and AMPIP offers its resources to all consulates as well. FCS is interested in partnering with AMPIP hoping that they can use each others resources and has provided them with contact information for all FCS offices in Mexico. ¶3. Recently AMPIP established an alliance with the National Association of Business and Industrial Properties in the U.S. The alliance with this 12,500 member organization provides AMPIP with international recognition and a knowledge base for future park promotion and development. AMPIP hopes that the alliance will provide them with more standing in the industrial sector and that it can use the institutional knowledge of the 12,500 members to improve its services and to improve its interactions with the Mexican government. ¶4. Claudia Avila Connelly, General Director of AMPIP, identified ambitious goals for AMPIP in its third decade of existence. Mexico does not require any license or certification for individuals to construct or sell industrial park properties nor are there strong specifications of what constitutes an industrial park. AMPIP in conjunction with other entities created the norm that is recognized by the Secretariat of the Economy to regularize the development of SIPDIS parks and bring favorable conditions to companies operating inside the parks. The norm is presently an optional norm that AMPIP is working to have the government make obligatory. AMPIP plans to complete a country wide survey of all industrial parks to identify parks that meet the industrial park norm in Mexico. Identification of these parks would lessen the ability of someone advertising any property as an industrial park. AMPIP is lobbying for the creation of one agency in Mexico that would promote Mexico internationally instead of the current system where efforts are duplicated by all levels of government. Avila also feels that it is crucial to create a federal tax incentive. Currently only State governments are able to offer limited financial incentives. BACKGROUND -------------- ¶5. AMPIP began 30 years ago as a private corporation and for the last 20 years has been a not-for-profit. It's 52 members (private companies, Mexican State Governments and financial real estate funds held by Prudential and LaSalle Investment Management) represent 140 industrial parks in 24 locations throughout Mexico. It promotes the parks at domestic and international trade shows, and provides investment development information not only on the parks but on industries and regions in Mexico free of charge. AMPIP also lobbies the government for improved infrastructure and taxes for its members. AMPIP is working to increase depreciation and permit its members not to pay taxes on land (the same exemption that hotels in Mexico receive) in order to stimulate growth. Visit Mexico City's Classified Web Site at http://www.state.sgov.gov/p/wha/mexicocity KELLY