• A note from Ambassador Garza
• Standard & Poor's: Mexico rating lowered by one notch; outlook stable
• In the news

A note from Ambassador Garza

As our year draws to a close, I wanted to take a moment to offer my best wishes to you and your families this holiday season.

And, what a year it has been. The American novelist Henry Crews wrote "survival is triumph enough" and, given the number of year in review pieces that have already characterized 2009 as annus horribilis, you'd think Crews had this past year in mind.

I know, that like many of you, I've found myself confronting a number of new challenges.

But, 2009 was the year that I was also fortunate enough to have joined some incredibly talented and committed people at both White & Case and ViaNovo. Both firms have allowed me to work on projects that further the economic, political and cultural bonds between the United States and Mexico.

And, optimist that I am, I see considerable promise on both sides of the border in the year ahead.
I believe that in 2010 we'll see continued economic recovery in Latin America as well as in both Mexico and the United States. I recently read noted economist and American University Professor Dr. Arturo Porzecanski's piece, "Latin America: The Missing Financial Crisis" and thought he summed up the current situation quite well when he wrote:

"This may well be the first time since Latin America gained its independence in the early 1800s that a major economic contraction and financial calamity in the industrialized world has not caused a wave of currency, sovereign debt or banking crises in the region."

Latin America has indeed survived the global downturn surprisingly well, and Dr. Porzecanski's recently published study reviews the progress made by many Latin American governments in the last decade. That progress positioned them to reap the benefits of financial globalization and weather the recent downturn better than in any previous time. I found it to be an insightful study and thought you might find it interesting. It's available online here.

Closer to home, Mexico will close out the year with at or near 7 percent contraction in GDP and, while most analysts project positive GDP growth for 2010 in the low/mid 3 percent range, there exist real challenges. Chief among them are:

• Declining oil production;
• Concerns about the U.S. economy (80 percent of Mexico's exports still head to the United States);
• Declining foreign direct investment;
• Lagging remittances;
• A tourism sector that is bouncing back but still well below previous years; and
• Record levels of violence, particularly along the U.S./Mexico border.

Clearly, what Mexico needs is faster, more sustainable growth-the kind of growth that can only be realized through broad structural reform. Yet, with 17 Mexican states electing new governors in 2010-2011 (Ten races to be decided next year alone.), conventional wisdom would suggest that politics will carry the day and that it's unlikely we'll see the kind of reform so desperately needed to foster real growth.

For yesterday's Standard & Poor report and their take on the situation, click here.

I, for one, am a bit more optimistic as Mexico, with its "just in time" access to North and Latin American markets and with an economically active population of over 40 million, continues to offer U.S. and international companies both a solid manufacturing platform and a growing consumer base. Mexico remains an attractive market for U.S. business expansion and investment, particularly for those that both understand the market and the political and regulatory obstacles that they might encounter.

And, at ViaNovo that's what we do, watch market opportunities, assess the political landscape and guide our clients toward successful business start-up or expansion into Mexico, both countrywide and state to state.

One sector in Mexico that shows considerable promise and immediate opportunity is in the area of infrastructure. Several weeks ago, White & Case joined other leading firms and the U.S. Chamber of Commerce to sponsor the Mexico Infrastructure Conference in New York City. I had the opportunity to personally visit with a number of the speakers and participants. From my conversations, one thing is certain: it's clear Mexico is serious about moving forward on infrastructure development in the year ahead.

With the need for public-private partnerships more urgent than ever and an estimated US$5 billion in infrastructure projects to be initiated within the next 12 months, opportunities abound for those doing business in this arena.

For more general information on investing in Mexico, you might visit the ProMexico site and for information specific to transportation and infrastructure projects go to the site of the Ministry of Communications and Transportation (SCT). Both should provide you useful insight as you consider opportunities in Mexico. And, of course, you should always This e-mail address is being protected from spambots. You need JavaScript enabled to view it

My Web site will continue to serve as a launching point for contacting me for news and issues related to the bilateral relationship. I hope you'll bookmark my site as a resource for a quick take on the day's news in Mexico via my Mexico news feed and consider following me on Twitterfor more timely insight on business and political matters that could impact you.

Lastly, I thought I would share with you a video piece that I did recently for White & Case. The brief segment, "Open Door," offers some insight into my decision to join White & Case.

With best wishes to you and your family this holiday season, I am,

Sincerely,

Tony Garza

Standard & Poor's: Mexico ratings lowered by one notch; outlook stable

Yesterday, Standard & Poor's released its updated ratings and Mexico was lowered by one notch; however, the S&P finds the country's outlook stable. You can read their full report here.

White & Case garners top honors
Pro bono work distinguishes White & Case
White & Case has been selected as a finalist in the U.S. Secretary of State's "2009 Award for Corporate Excellence." The Firm is one of the 11 finalists - and the only law firm - to be selected for the prestigious award, which recognizes the important role U.S. businesses play in advancing good corporate citizenship globally. The U.S. firm finalists were chosen from 42 nominations submitted by American ambassadors around the world.

Read more about national and global recognition for White & Case in 2009 here.

In the news
SMU attacks poverty with innovation, new institute
Southern Methodist Universityjust announced the launch of a new institute within the Bobby Lyle School of Engineering. The new Hunter and Stephanie Hunt Institute of Engineering and Humanityaims to attack global poverty through technological innovation and business collaboration. The institute will focus on solutions that provide safe, affordable and sustainable housing, but will also drive innovation in clean water, sanitation and renewable energy. Learn more about this promising institute on the SMU Web site and through this recent Dallas Morning News article.

Garza joins KCSM advisory council
Kansas City Southern de Mexico (KCSM) recently named Ambassador Garza to the company's advisory council. The advisory council is appointed and authorized by the KCSM board of directors to advise the company on matters related to KCS operations in Mexico. Read about the appointment here.