MEXICO: 3R U.S. PRODUCTS International Commerce U.S. DEPARTMENT OF COMMERCE • BUREAU OF INTERNATIONAL COMMERCE A SUPPLEMENT TO International Commerce ... the weekly news magazine for world traders published by the Bureau of International Commerce and sold by the Superintendent of Documents, U.S. Government Printing Office, Washing- ton, D.C. 20402, and by Department of Commerce Field Offices for $16 a year. A Market for U.S. Products in MEXICO U.S. DEPARTMENT OF COMMERCE John T. Connor Secretary Alexander B. Trowbridge Assistant Secretary for Domestic and International Business BUREAU OF INTERNATIONAL COMMERCE Lawrence A. Fox Director For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C., 20402 - Price 50 cents FOREWORD This U.S. Department of Commerce study provides the U.S. business- man with detailed information on the export sales possibilities in Mexico, the largest market for U.S. products in Latin America. In 1964, Mexico purchased goods valued at $1 billion, or 68.5 percent of its total imports, from the United States. This made Mexico the United States fifth best customer in the world for that year. Prospects for the continuation of a high level flow of U.S. exports to Mexico are excellent. The country is experiencing a steady rate of economic growth and its broadening industrial base will require substantial quantities of imported capital and producer's goods on a sustained basis. Mexico's purchasing power is good; it has maintained a high level of gold and foreign exchange reserves in recent years; it has no controls on foreign exchange transactions; its currency has been maintained at the same rate in relation to the dollar since April 1954 and it enjoys a sound credit position in international money markets. On the negative side, it should be noted, however, that Mexico maintains a system of import controls. Paul Flores coordinated the preparation of this report under the direction of Claude Courand, Director, American Republics Division, Bureau of International Commerce. Mr. Flores, now of the American Republics Division, first worked on this report while Commercial Officer, U.S. Embassy, Mexico City, Mexico, under the direction of Gilbert E. Larsen, Commercial Attache. Other contributors to this report include Harry R. Zerbel, Robert L. Bruce, Morris Kaufman, Ruth B. Ortega, Charles G. Mueller, and Joseph B. Kyle, all of the Embassy staff; and Mrs. Irene B. Johnson and Mrs. Katherine E. Rice, both of the American Republics Division of the Department of Commerce. Lawrence A. Fox Director, Bureau of International Conune, June 1966 Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://archive.org/details/marketforuspOOunit Foreword Market Profile Chapters I. Market for U.S. Products Trade Summary Import Trade Policy Trade Agreements Latin American Free Trade Association... Factors Affecting Sales Industrialization and Imports II. Basic Data on Mexico Population and Principal Cities Income and Consumption Patterns Structure of the Economy Development Programs and Assistance Significance of Foreign Trade III. What Sells in Mexico Machinery, Tools, Transport Equipment... Chemicals and Pharmaceuticals Other Manufactured Goods Raw Materials Except Fuel Food Products Mineral Fuels, Luhricants, Electricity Beverages and Tohacco Fats and Oils IV. How They Do Business Marketing Channels Banking System Eximbank/FCIA Insurance and Guaran Credit Information and Collections Market Research , Advertising Trade Associations Warehouses, Free Ports, Free Zones Transportation and Communications Exhibitions and Fairs Other Trade Practices Aids to Travelers Professional Services V. Import Regulations Tables 1. Imports. Exports, and Trade Balance, 1955-65 2. Imports From Principal Countries, 1939, 1950, 1958-64... Tables, continued 3. Exports to Principal Countries, 1958-64 4. Imports by Public and Private Sectors, 1960-64 5. Population by States and Territories, 1950-1960, and Projected 1964 as well as Percent Urban in 1960 6. Population of 38 Cities with 50,000 or more Inhabitants, 1960 and Estimated, 1965... 7. Populated Places of Ranked Size by Number of Place, Total Population, and Percent of Total Population, 1960 8. Distribution of Personal Income, 1957 9. Percentage Distribution of Family Expenditures, 1960 10. Value of Gross National Product and Percentage Increase, 1950-64 11. Gross National Product, by major economic sectors, selected years 12. U.S. Exports to Mexico by Commodity Sections and Principal Commodity Groups, 1959-65 13. Exports of Principal Commodities, 1958-64 14. Imports by Commodities Sections, 1961-64 15. Total Imports and Imports from the United States by Commodity Sections, 1964 16. Imports of Machinery, Tools, Electrical and Transport Material, Total and From the United States, by Commodity Divisions, 1964 17. Imports of Chemicals and Pharmaceuticals, Total and From the United States, by Commodity Divisions, 1964 18. Imports of other Manufactured Goods, Total and From the United States, by Commodity Divisions, 1964 19. Imports of Miscellaneous Commodities, Total and From the United States, by Commodity Divisions, 1964 20. Imports of Unmanufactured Materials Except Mineral Fuels, Total and From the United States, by Commodity Divisions, 1964 21. Imports of Food Products, Total and From the United States, by Commodity Divisions, 1964 22. Imports of Mineral Fuels, Lubricants, and Electric Energy, Total and From the United States, by Commodity Divisions, 1964 23. Imports of Beverages and Tobacco, Total and From the United States, by Commodity Divisions, 1964 24. Imports by Customs Ports, 1964 25. Motor Vehicle Registration by States, January 1, 1964 26. Total Number of Telephones in Use by States and Territories, 1959, 1961 and 1963... Maps Consular distri Political Mexico Buys from Abroad, 1964 Economically Active Population by Major Occupations, 1964 Population by Sex and Age Groups, 1960 Imports of Machinery, Tools, Electrical and Transport Material, Total and From the U Commodity Divisions, 1964 Imports of Chemicals, Total and From the United States by Commodity Divisions, 1964 . -1965: 41 million with 52.6 percent urban. : 34.9 million, of which 51 percent urban, of Mexico City, Federal District Natural Resources Land— Area 761,600 square miles. Climate— Temperature ranges with altitude from hot (77°-94°F.) to temperate (75°F.) to cool (53°-63°F.). Mexico has insufficient rainfall. Minerals— Production (1965) in 1,000 short tons: iron ore 1,686; zinc 248; lead 187; manganese 65; copper 76; silver 1.4; sulfur 1,739; coal 2,167;; gold 215,791 troy ounces; crude oil (1964) 115.6 million barrels (42 gallons each). Forestry Forested: 86.5 million acres; utilized: 10 million acres. Lumber production, 1964: 2.6 million cubic meters. Fisheries — Commercial fish exploitation (Pacific and Gulf of Mexico). Total catch 1964, 218,000 short tons. Shrimp a major export product. Livestock— 64.4 million head (1964) of which 26.8 million head, bovine; 12.6 equine; 9.3 porcine; 6.5 ovine; and 9.2 caprine. Poultry, 75.5 million head. People Populatioi 1960 censi Estimated populati (1965) 6 million. Language — Spanish is official. Education — Compulsory for primary grades. In addition, numerous private, intermediate, and technical schools; Na- tional, State, and private universities. Literacy in popula- tion over six, 71.1 percent in 1964. Federal public educa- tional and cultural budget (1966) $380 million. Labor — Economically active population (1960 census) 11,332,016; in agriculture/forestry/livestock/fishing 54.2 percent; manufacturing 13.7 percent; service 13.4 percent; commerce 9.5 percent; transportation and other 9.2 percent. Estimated labor force (1965), 13.2 million. Finance Currency— Peso (12.50 to US$1). No exchange control; monetary circulation December 31, 1965, $2,365 million. Bank of Mexico net foreign exchange reserves (December 1965). $510.8 million. Domestic Credit — Fund sources: Domestic banks; finan- cieras, that is, industrial investment banks; 3 stock ex- changes; foreign banks. Domestic Investment — Private fixed investment (1963) 52 percent of total investment. Public/private investments (1964) $2.8 billion, (1963) $2.2 billion. National Budget— 1966: $4.2 billion, of which $2.6 billion for 20 of the Principal Government decentralized agencies and state-owned enterprises and $1.6 billion for regular Federal budget. Of latter, allotments are: economic de- velopment 38 percent; social development 39 percent; military/administration/public debt 23 percent. Foreign Aid — Loans contracted through the State De- velopment Bank, Nacional Financiera, S.A. (1965) in millions of dollars: 380 of which 149.7 from U.S., 171.8 from international organizations, 57.7 from Europe, 0.8 from Canada. Balance of Payments— Favorable in 1965 for fourth suc- cessive year; however, Mexico continues to have current account imbalance. Government has $345 million standby credits in U.S.. Economy Gross National Product— In current prices (1965) $19.4 billion. Per capita income about $410. 1964 GNP of $18 billion was divided percentagewise thus: agriculture/ livestock/forestry/fishing 17.7; mining 1.8; petroleum and coke 3.3; manufacturing 25.1; construction 3.8; electric power 1.5; transport and communications 4.4; commerce 26.3; government 2.8; other 13.3 Agriculture — Mexico 95 percent self-sufficient in foods; has wide range temperate/tropical products. Principal ex- ports: cotton, coffee, sugar, vegetables, fruits. Industry — Semi-developed, growing rapidly, except for mining which has declined. Index of volume of industrial production in general (1960, 100) grew from 46.7 in 1950 to 141.8 in 1964. Commerce — Wholesale prices in Mexico City ros« 4.2 per- cent in 1964 and 1.9 percent in 1965. Government controls prices of about 50 basic necessities. Tourism — Tourist income helps pay for Mexico's trade deficit. In 1965, 1.4 million tourists entered interior (1.2 million in 1964) . Net revenues from tourist trade and border transactions in 1965 totaled $368.5 million. Government Mexico is a federal, democratic republic of 29 states, two territories, and a federal district. The President, Congress, Judiciary, and State Governors are elected by direct uni- versal suffrage in effect since 1955. The Territorial Gov- ernors are appointed by the President. Mexico's bicameral Congress is composed of a Senate, made up of 60 Senators (2 from each State and 2 from the Federal District), and a Chamber of Deputies (1 deputy for each 200,000 of the population, or a minimum of over 100,000 for each electoral district). Senators and Deputies are elected for six and three years, respectively. Foreign Investment In 1964, $150.1 million inflow, representing 5.1 percent total Mexican investment. Total U.S. direct investment in 1965 about $1.2 billion with two-thirds in manufacturing. Foreign Trade Imports— (1965) $1,560 million; exports— $1,111 million. 1964 imports, $1,493 million; exports 1964, $1,032 million. U.S. market share (1964) 68.5 percent. U.S. purchased (1964) 59 percent Mexico's exports. Closest competitors were West Germany (6.5 percent), Canada (4.1 percent), U.K. (3.3 percent), France (2.5 percent). Major imports: heavy industrial/agricultural /construction machinery; trans- port/communications equipment; semimanufactured/raw materials. Major exports: agricultural products; cattle/ beef; minerals; shrimp; hard fibers; textiles. Policy — Protection of national industry; substitution of domestic products for imports and promotion of exports of manufactured and semimanufactured products; geographic and commodity diversification of foreign trade. Mexico has no trade agreement with United States, is not a member of GATT. is member of LAFTA to whose members it grants tariff concessions. Prospects — For continued high level of imports/exports are CHAPTER Market For U.S. Products Mexico, with a fast-growing population, a politically and financially stable government, a self-sustaining agricultural base, and a rapidly expanding industrial economy offers an important and growing market for both domestic and foreign products. TRADE SUMMARY The Mexican market today is primarily a pro- ducer's goods market, with 80 percent of total Mexi can imports composed of heavy industrial plant equipment, construction machinery, automotive ve- hicle parts, tractors, agricultural equipment, loco- motives, railway rolling stock, power and communi cations equipment, iron and steel bars and scrap, chemicals, and a variety of raw and semi-processed materials for industry. The consumer's market — 20 percent of the total — includes such items as foodstuffs, unassembled auto- mobiles, tobacco, books, scientific apparatus, and antibiotics. The United States is Mexico's leading supplier and Mexico's principal customer. Mexico is the United States most important customer in Latin America and in 1964 was its fifth largest customer in the world. The U.S. share of the Mexican market was 68.5 percent in 1964, as against 68.6 percent in 1963. This share reached an alltime high of 89.7 percent in 1944 when, under wartime conditions, Mexico was cut off from nearly all other foreign trade sources. The steady decline in the U.S. share since then has resulted from the return of world trade to its more normal peacetime pattern and from Mexico's determ- ination to diversify its trade geographically. In view of these factors, U.S. suppliers must sell aggressively and intelligently if the U.S. position is to be main- tained in the Mexican market. Mexican imports have risen appreciably in recent years as a result of the country's expanding economy. They reached an alltime high of $1,561 million in 1965 as compared with $1,493 million in 1964. Mexican exports in 1965 rose to $1,111 million, as compared with $1,022 million in 1964, an increase of 8.6 percent. In 1965, Mexico's trade deficit was $450 million as compared with $471 million in 1964 (see table 1) . Imports from the United States amounted to $1,023 million in 1964 compared to $850 million in 1963, an increase of 20 percent (see table 2). Mexico's exports to the United States in 1964 increased 2.1 per- cent—from $597 million in 1963 to $609 million in 1964 (see table 3). European competition in the Mexican market has increased in recent years, and West Germany is now the United States main competitor in this market, supplying 6.5 percent of the market in 1964 and 6.6 percent in 1963. It is followed in importance by the following countries in percent of 1964 total (1963 percentages shown in parentheses) : Canada 4.1 (3.5); United Kingdom, 3.3 (3.5); France, 2.5 (2.7) ; Italy, 2.2 (2.3) ; Switzerland, 1.8 (2.2) ; and Japan, 1.8 (2.1). United States exporters have many advantages in trading with Mexico. For example, Mexico's loca- tion adjoining the United States permits fast delivery, low transportation costs, and easily accessible servic- 1 ing and technical assistance. United States products have a reputation for quality, many of them are long established and well liked. However, other foreign suppliers are competing aggressively by offering lower prices, introducing cer- tain products which are specially adapted to the needs of the market and, in some instances, offering more favorable credit terms than those extended by U.S. suppliers. The market for consumer goods is not good. Con- sumer products are produced domestically. Imports of foreign competing lines are usually restricted or excluded by licensing controls intended to protect domestic producers and to conserve foreign exchange for the importation of the more essential producers goods. From 1959 to 1962, consumer goods imports averaged $214 million annually and represented 19 percent of the value of total imports. In 1963 and 1964, they amounted to $283 million and $300 million, respectively, and accounted for 23 and 20 percent, respectively, of total imports. The rise in 1963 wag accounted for principally by substantial imports of corn, processed milk, and unassembled automobiles and parts. However, by 1964, milk imports were de- clining and Mexico had become an exporter of corn. Imports of automobiles and parts will decline as the domestic auto manufacturing program progresses. Imports of capital producer's goods, on the other hand, should continue to increase at a steady pace. Normally, they amount to about 80 percent of the total and consist of all types of machinery, trucks, tractors, locomotives, aircraft, communications equip- ment, and electrical generating equipment. In addi- tion, processed and/or semimanufactured goods used as producers goods in industry include some items which are also consumer-type goods, such as natural and artificial rubber, petroleum and its products, fertilizers, insecticides, industrial chemicals, news- print, and plastic materials. Mexico has programs designed to expand its pro- duction of both consumer durables and producer's goods. Nevertheless, the need for industrial raw ma- terials and equipment should continue to grow as the economy expands. IMPORT TRADE POLICY Mexico's general policy regarding imports is pro- tectionist. Its import licensing system is designed principally to encourage and protect domestic pro- ducers, to direct investment into those economic sec- tors requiring increased production, and to assure that foreign exchange is primarily utilized for essen- tial imports. The policy grew out of post World War II balance-of-payments difficulties, export prob- lems, economic development policies, and Mexico's general economic philosophy. Major objectives of its policy are import substitution by domestic prod- t's Goods, 1959-64 Year total 1959 1,006.6 1960 1,186.4 1961 1,138.6 1962 1,143.0 1963 1,239.7 1964 1,493.0 Source: Nacional '. Cifra Mex ucts and geographic diversification of its foreign trade. Import substitution reflects Mexico's desire to obtain maximum self-sufficiency; diversification re- flects a desire to develop markets and obtain sources of supply in addition to the United States. To exe- cute its policy, Mexico has tightened its restrictions on imports to the extent that increased agricultural and industrial production has made it possible to do so. Import substitution has been implemented by im- port licensing, enforced domestic industrialization, tariff barriers, Government purchasing policies, trade and payments and compensation agreements, and par- ticipation in the Latin American Free Trade Associa- tion — LAFTA — an organization composed of 8 South American countries and Mexico which seeks to lib- eralize trade between member countries through the granting of mutual tariff concessions. Mexico does not belong to the General Agreement on Tariffs and Trade — GATT, the international organization which tries to lower barriers on world trade through multi- lateral tariff negotiations. By mutual consent and on Mexican initiative, the Mexico-United States Trade Agreement of 1942 was terminated in 1950. Thus, the United States and Mexico have no contractual agreement under which trade problems can be discussed. Import licenses are Mexico's most effective means of controlling imports. Thirty-two regular committees plus 8 advisory groups representing the most im- portant segments of industry screen import license applications. The import licensing controls are not discrimina- tory; they apply equally to all countries except those in LAFTA. However, the impact of the licensing re- strictions tends to be felt heaviest in the United States which has the largest share of the Mexican market. The practice is to deny or seldom allow requests for licenses to import products of a kind made in Mexico. In 1964, 65 percent of total imports by value were subject to import licensing and the number of items subject to licensing controls is increasing. As a result, imports of consumer's goods have declined in recent years. Imports of producer's goods are of major importance. Chart 1 Mexico Buys From Abroad, 1964 Millions of Dollars ) 100 200 300 Machinery, machine tools electrical & transport material Chemicals Other manufactured goods Unmanufactured materials, except mineral fuels Food products Mineral fuels, lubricants and electric energy Beverages and tobacco Arms, ammunition and miscellaneous commodities Fats and oils, except lubricants i | i | i 818.0 * 226.0 195.1 i 132.7 63.2 37.1 10.1 7.5 3.5 I . _ i _ ( Source: Secretaria de Industria y Anuario Estadistico del C Mexicanos, 1964, Mexico, ) 100 200 30 Comercio, Direccion General de Estadistica, omercio Exterior de los Estados Unidos D.F., 1965. Enforced industrialization has also been used to implement the import substitution policy. This policy was initiated in 1962 when the Government decreed that typewriters and automotive vehicles must be manufactured in Mexico, within a specified period of time. Since then, similar decrees have required the manufacture of agricultural tractors, certain kinds of construction machinery, and diesel engines. The usual procedure has been to require interested firms to sub- mit manufacturing programs to the Government within a specified time limit. The plans are then reviewed by the Government, and those that meet requirements are approved. Firms with approved plans must then begin manufacture by a stipulated date. In the meantime, they may be given the ex- clusive right to import products of the kind to be manufactured, thus eliminating from the market, firms which do not choose to manufacture in Mexico. The automotive industry, which began manufacturing engines in the spring of 1965, is the most advanced of those covered by these Government decrees. Import substitution is also an important element in the Government's National Frontier Program — PRONAF, announced in 1961, which is intended to rehabilitate the Mexico-United States border towns and to bring them more actively within the Mexican economy. Those Mexican towns would thereby reduce their dependence on U.S. sources of supply. Residents of Mexican border towns now purchase substantial quantities of consumer goods in the United States. Mexican manufacturers with the help of PRONAF are pressing to orient them toward Mexican suppliers. Measures taken by the Government to assist such man- ufacturers in shipping their goods to the border areas include the granting of subsidies on railway freight rates and rebates on the Federal portion of the mer- cantile (sales) tax. The import tariff is an important factor in limiting imports, but it is not so significant as import licens- ing controls. In 1963, combined import duties and taxes averaged 13.6 percent of total import values. Duties are both specific and ad valorem, and are ap- plied to most imports. The system of fixing official prices on imported goods, for duty purposes is de- signed to combat underevaluation of invoice prices. In many cases the official price is higher than the invoice price. In assessing ad valorem duties, Mexi- can customs officials use whichever price is higher. Government imports are screened by the import committee of the public sector of the National Foreign Trade Bank, which usually requires Government en- tities to buy domestically if possible. The committee's recommendations are usually followed by the Min- istry of Industry and Commerce, the licensing agency. Public sector imports accounted for 18.3 percent of total imports in 1960-65 (see table 4). The second major feature of foreign trade policy, diversification, applies to both exports and imports. Diversification of both exports and imports rests on the Mexican analysis of the terms of trade. Mexico regards itself as traditionally a raw materials producer and exporter that must diversify both the destina- tion to which products are exported and the kinds of products exported. The policy means buying more goods from a greater number of countries. According to the National Foreign Trade Bank, 1 the country's great dependence on a single supplier-market — the United States — calls for a policy of increasing the number of geographic areas that both supply imports and take exports. This does not mean a forced dis- placement of traditional suppliers and buyers, how- ever, but rather a persistent effort to obtain better terms in various markets. TRADE AGREEMENTS Mexico has general most-favored-nation bilateral trade agreements with 19 countries: Belgium-Luxem- bourg, Brazil, Canada, Chile, Costa Rica, Czechoslo- vakia, the Dominican Republic, El Salvador, France, Greece, Indonesia, Israel, Italy, the Netherlands, Poland, the Republic of China, Switzerland, the United Arab Republic, and Yugoslavia. The same most- favored-nation treatment accorded these nations is extended to other nations with which Mexico trades except those in LAFTA, who get preferential treat- ment. Mexico also has a payments agreement with Spain. Most of Mexico's trade agreements are very general in nature. They do not channel trade nor provide for duty reductions. However, a few, such as those with Indonesia, Italy, Yugoslavia, and Poland, list products the exchange of which is to be promoted under the bilateral arrangements. Imports from all countries except LAFTA countries are charged identi- cal specific and ad valorem duties and are subject to the same import licensing requirements. LATIN AMERICAN FREE TRADE ASSOCIATION Mexico, Argentina, Brazil, Chile, Paraguay, Peru, and Uruguay formed LAFTA by the Treaty of Monte- video in February 1960. Colombia and Ecuador joined in 1961 and Venezuela will join soon. Lib- eralization of trade among LAFTA countries has oc- curred as a result of the national list negotiations held at Montevideo in 1961, Mexico City in 1962, Monte- video again in 1963, and Bogota in 1964. National lists establish schedules of concessions that each member country agrees to give to the others. As a result of the first three national list negotiations, tariffs were reduced by more than 30 percent, affect- ing some 8,000 items. The Bogota Conference ne- gotiated about 345 concessions of which 284 were new and 61 were renegotiated, bringing the lists up to 8,600 items. It also created the first multilateral com- mon list of some 175 items. On common list items, duties are to be reduced to zero by 1973. The com- mon list is a schedule of products on which the member countries agree collectively to eliminate duties, charges, and other import restrictions. There has been a substantial increase in Mexico's total trade with other LAFTA countries, as follows (in million of dollars): 1961, 12.0; 1962, 22.8; 1963, 36.9; 1964, 50.4; and 1965, 66. Mexico's ex- ports to LAFTA have risen more rapidly than her imports. In 1965, the exports accounted for $36.3 million and the imports for $29.7 million. Some of Mexico's leading exports to LAFTA countries are iron and steel pipe, pitch, gas tanks, books, iron and steel sheets, zinc, hormones, cotton, metal castings, motion pictures, and copper wire. Mexico's main imports from LAFTA have been books, machine tools, synthetic rubber, newsprint, fishmeal, and pharmaceuticals. Although the increase in Mexico's LAFTA trade has been relatively large, such trade represented only 4.2 percent of Mexico's total foreign trade in 1965. Proponents of LAFTA in Mexico feel that the country has not given that organization sufficient at- tention. To date, LAFTA has been regarded prin- cipally as a trade promotion device designed to ex- pand Mexican exports into new areas. Only recently has a need been recognized to permit increased im- ports from other LAFTA countries and this was re- flected in the rise in LAFTA imports in 1965, an increase of 71.2 percent over 1964 imports ,of $17.3 millions. Mexico's economic development planning has also been predicated mainly on national require- ments and has not been much affected by the possi- bilities of LAFTA as a regional economic develop- ment organization. MEXICO— A MARKET FOR U.S. GOODS: The 46-inch blooming-slabbing mill of 1.5 i is an American make in a Monterrey, Nuevo Leon State, steel mill. al capacity 5 URBAN MARKET. Producer's goods to erect buildings, make automobiles, lay concrete streets, and generate electricity rank high in Mexico's needs. FACTORS AFFECTING SALES Selling the Mexican market successfully involves knowledge of the market, competitiveness, and good salesmen. The Mexican market must be viewed realistically. It is not a market for all foreign products because many of them may not be importable. The first step for a U.S. exporter not familiar with Mexico is to ascertain if his product is importable. Mexico has so many restrictions on imports that it may be difficult to state offhand whether a product is import- able; however, a query to the U.S. Department of Commerce through a Field Office often determines its importability. If a product is found to be importable, it should then be examined in terms of its salability in the market. Although a neighbor to the United States and ac- customed to American over other foreign articles, Mexico is no mere extension of the U.S. market. Pur- chasing power is smaller and income groupings are different. Market statistics by products usually are not available and sellers must frequently make special surveys to obtain meaningful information for a sales program. The American exporter can readily visit Mexico to study the market. A week to 10 days suffices for most investigations. Advance preparations, made in consultation with a U.S. Department of Commerce Field Office, can usually save the exporter's time and make his visit more effective. If the exporter cannot visit Mexico, he can obtain the services of firms in Mexico which specialize in market surveys. In addi- tion, the services of the U.S. Department of Com- merce in Washington, D.C., and of the U.S. Embassy and the U.S. consulates in Mexico are available. Foreign competition has increased in Mexico in recent years as evidenced by the gradual decline in the U.S. share of the market following World War II. Because Mexico is one of the most stable and rapidly expanding countries of Latin America, its market is being cultivated by the industrialized countries of Europe, by Japan, and by the LAFTA countries. As a result, Mexico has become an increasingly com- petitive market. The important elements of competition in Mexico are price, quality, market suitability, credit terms, de- livery, service, and parts. The market is price con- scious, and price and suitability of the product to local needs, are often the first considerations. Ameri- can products are preferred for their quality if they are otherwise competitive. In Mexico's present state of development, a fairly simple product at a low price may often be more salable than one of advanced design or more highly mechanized, at a higher price. Some U.S. products are too advanced technically or are of too high quality for the needs of many users and thus may not be really competitive. The metric system is used in Mexico but this does not appear to be a handicap to the sale of U.S. prod- ucts. The 50-cycle current in Mexico City (60-cycle in the rest of the country) does affect the sale of electrical equipment. Next to price, quality, and the suitability of a product, credit is important. Commercial bank rates in Mexico are high, and sales often go to sellers who offer the best credit terms. Foreign suppliers other than American sometimes give longer terms and more liberal financing of local installment costs than do U.S. exporters. This is especially important in selling plant machinery and equipment, one of the major imports. United States exporters must know what time and interest terms the competition is offer- ing and be ready to meet it. They should utilize fully the credit facilities of their commercial banks and of the Export-Import Bank of Washington, D.C. — the Eximbank. Fast delivery and good service are also important. The U.S. exporter's advantage of being close to Mexico permits the importer-distributor to keep small inventories and the importer-user to receive his prod- uW VALUE BEING ADDED BY MANUFACTURE: A petro- leum refinery of the Petroleos Mexicanos in operation at Minatitlan, Veracruz State, Mexico. ucts quickly. A telephone call or telegraph message to the supplier in the United States can usually bring service and parts within a matter of hours. Finally, a good selling program and effective sales representation in Mexico are essential. For most foreign suppliers who do not have branches in Mexico, the best way to sell is through a sales agent. An exporter will probably not hear about sales oppor- tunities unless he has someone in Mexico who is in constant touch with the market. The exporter who waits for business to come to him may not get much from Mexico unless his products are unique or semi- monopolistic in nature. The Government normally does not publish invita- tions to bid unless the purchases are to be financed by international lending agencies that require public bids. Thus, the bulk of the substantial Government busi- ness goes to suppliers who have agents on the scene. All suppliers to the government or their agents must be registered with the Ministry of National Patrimony. Personal contact is highly important in selling in Mexico. The development of a close working rela- tionship between the Mexican sales representative and the U.S. exporter will contribute a great deal to the success of the mutual effort. If the sales agent has good support from his supplier, he will usually try to do a good job. The cultivation of the proper relationship between the principal and agent depends largely on the exporter. INDUSTRIALIZATION AND IMPORTS Mexico's industry has expanded steadily since World War II. Prior to the war, Mexico relied to a great extent on imports of both consumer goods and capital equipment. Manufacturing consisted mainly of basic goods, such as textiles, tires, shoes, matches, soap, beer and soft drinks, tobacco products, iron and steel, cement, paper, glass, and miscellaneous food products. The war afforded a stimulus to manu- facturing, which was encouraged by the Government, This development reflected the Government's determ ination to industrialize as quickly as possible, to re- duce dependence on foreign suppliers, to relieve pres- sure on the balance of payments, and to provide em- ployment for Mexico's rapidly growing population. Recently, there has been increasing awareness of the need for greater rural economic development to provide an expanding market for the products of Mexican manufacturers. In 1939, 1941, and 1945, laws were passed granting concessions to domestic and foreign investors in in- dustries which the Government wished to promote. In 1941, the Department of Industrial Investigation of the Bank of Mexico was established to study the country's industrial needs. That Department in collab- oration with other Government agencies recommended tax concessions to new manufacturing plants. The system of tax concessions was organized in its present form by the Law for the Development of New and Necessary Industries of December 1954, which pro- vides exemptions of up to 10 years from income, import, sales, and stamp taxes. The Federal District offers approved plants exemption from real estate and sales taxes, and almost all the Mexican States now have development programs providing various tax exemptions and other incentives to new industries established in their areas. From 1950 to 1963, Mexico's gross-national-product grew 109 percent in terms of constant prices. The growth was 6.3 percent in 1963, 10 percent in 1964, and 5.1 percent in 1965. Manufacturing rose 144 percent from 1950 to 1963, 9.2 percent in 1963; 13.5 percent in 1964; and 7 percent in 1965. In 1964, manufacturing accounted for 25.1 percent of the GNP, compared to 20.8 percent in 1950. During this period, overall output of industry rose 135 per- cent while that of agriculture increased 70.5 percent. Today, Mexico produces a greatly expanded range of products, including artificial fibers, household appliances, railroad cars, tractors, typewriters, phar- maceuticals, fertilizers, chemicals, detergents, paints, dyes, plastics, refractories, aluminum and aluminum products, construction materials, sewing machines, bicycles and motorcycles, automotive vehicles, cloth- ing, and furniture. Manufacturing industries which have grown fastest since 1950 include iron and steel, cement, radio and television equipment, household appliances, motor vehicles, synthetic fibers, fertilizers, pharmaceuticals, automotive and industrial and petro-chemicals. The most rapidly expanding activities other than manufacturing have been construction, electrical en- ergy, commerce, Government, petroleum and coke, agriculture, forestry, and transport and communica- tions. Fishing, mining, and livestock production have lagged. Commerce represented 26.3 percent of the gross national product — GNP in 1964 and agriculture, 11.7 percent. Recent incentives to industrial development other than those granted by the Law of Industrial Encour- agement have been: 1. Political stability 2. Absence of foreign exchange controls 3. Protection from foreign competition 4. Good fiscal management 5. Avoidance of inflation 6. Government loans to certain basic industries 7. Tax refunds to companies exporting certain manufactured goods. The Government has invested large sums of money in infrastructure and social projects, such as dams, electric power, roads, railroads, ports, and housing. These projects indirectly aid industry and generate imports. In 1962, the Government issued a report, Possibili- ties for Private Industrial Promotion in Mexico, 2 listing more than 450 products in which investment in manufacturing was regarded as necessary and desirable, including iron and steel, automotive com- ponents, machinery, paper and pulp, chemicals, phar- maceuticals, precision instruments, electronic equip- ment, and communications equipment. A revised list containing 370 products was issued in 1965. In 1962, the Government instituted a new policy which required the manufacture of certain products in Mexico. A decree of August 1962 for example, required the manufacture of automotive vehicles, in- cluding engines, with 60 percent of the value of the components domestically produced. The Government subsequently approved the production plans of 10 companies, 8 of which have established or are build- ing engine plants. Many auxiliary projects were also approved for the manufacture of auto components. A decree of July 1962 required the domestic man- ufacture of typewriters. A decree of March 1964 required the domestic manufacture of certain types of construction machinery, and a number of company plans were approved under this program. A decree of December 2, 1964, required the manufacture of diesel engines and of construction machinery of kinds not approved under the previous program. By adminis- trative action, the Government has given impetus to the manufacture of agricultural tractors, cutting and soldering tools, adding machines, fork lift trucks, pneumatic tools, air and gas compressors, electrical hand drills, and other products. The Government also promotes industry by financ- ing expansion through loans, equity participation, and outright Government ownership of companies. The Government's investment and development bank, Nacional Financiera, S.A. — NAFIN, has granted credit to more than 500 firms. NAFIN has equities in steel mills, a foundry, an automotive plant, paper mills, fertilizer factories, a freight car manufacturer, a coal and coke producer, a steel pipe plant, an air- line, and many other enterprises. NAFIN has not hesitated to invest in those essen- tial industries that, in its opinion, private initiative has been reluctant to enter. NAFIN has also often been asked by private owners to assist with loans or to take an equity in their firms, when those owners were having financial difficulties. 2 Direccion General de Industrias, Secretaria de Industria y ' nine. i-in. I'o-.ilii/iJi/tlr; int,,: In I ' r om orion Industrial Privada en Mexico, Mexico, D.F. 1962. The Government-owned petroleum monopoly Petro- leos Mexicanos — PEMEX, which also has exclusive rights on the manufacture of basic petrochemicals, has joined with private firms in projects to produce synthetic rubber, carbon black, fertilizers, and inter- mediate petrochemicals. Most of the country's elec- trical generating and distributing facilities are Gov- ernment owned. Government planning has assumed a growing im- portance in recent years. For example, in 1963, a 3-year economic development program was adopted by the Government. That program called for the in- vestment of $6.3 billion, almost equally by the public and private sectors. Within this program, $1.3 billion was to be invested in manufacturing for which most of the funds were to come from the private sector. Industrial investments in the program were princi- pally to expand the production of steel, automobiles, industrial machinery, chemicals, pharmaceuticals, petrochemicals, textiles, paper, cement, and electrical equipment. Industrial development has affected the composi- tion of imports. Most consumer goods are now made in Mexico and so may not be imported. In recent years, the production of consumer durables has ex- panded. Automobiles and parts have accounted for nearly half of the value of consumer goods imports, but their importation will start to decline as local production increases. Imports of construction equip- ment, diesel engines, some machine tools, certain kinds of machinery, fertilizers, and office equipment, which have accounted for an important share of Mexi- can imports in recent years will also decline as domes- tic manufacturing projects start producing. Imports of some producers goods, such as iron and steel, aluminum, rubber, some types of chemicals and petro- chemicals, and woodpulp, will probably decrease as domestic production expands. Despite the expansion of domestic production of many kinds of goods, the total value of imports has increased and should con- tinue to increase to meet the needs of the expanding economy. United States exporters and their Mexican sales representatives should constantly review the Mexican market to keep pace with its changing needs. In some cases, exporters must decide either to manu- facture products in Mexico or to drop out of the market. Manufacture may enable the exporter to re- main as a supplier of certain raw materials and com- ponent parts going into the product he manufactures in Mexico. Alert exporters should seek opportunities to supply new and different products. Now and more so in the future, the principal export opportunities are in producers goods. CHAPTER a Basic Data on Mexico For the sale of foreign merchandise, Mexico should generally be regarded as two markets. The principal one is the interior whose commercial, financial, indus- trial, and cultural center is Mexico City. This is by far the largest market. Not so large a market and less well known abroad is the area along the U.S. frontier and the free zone of Baja California. The interior market centers largely around Mex- ico's three principal cities; Mexico City, Guadalaj; and Monterrey. Within their broad spheres of influ- ence and overlapping each other are marketing areas around such cities as Tampico, Veracruz, Villaher mosa, Merida, Tuxtla Gutierrez, Oaxaca, Puebla. Queretaro Morelia, Mazatlan, Culiacan, Dura Torreon, Chihuahua, and Hermosillo. The interior market has several zones: the Central, Gulf Coast. South East, Central, and Western. These zones gen erally correspond with the U.S. consular districts, but there are exceptions. In the North, a consular district may include both interior and free zone markets. The consular district breakdown is useful to sellers desiring detailed marketing information and for those selling in a given area. To a considerable extent, the interior market can be regarded as a single unit in both foreign sales representation and distribution of imported merchan- dise. While some demand for imports originates al- most everywhere in the country, the market for imported products is usually covered by firms head- quartered in Mexico City with salesmen traveling the country or with branches or distributors located in key cities. The method of distribution varies with the product. Some foreign suppliers prefer to deal direct with a number of distributors in the larger cities, but most of the foreign products are sold through those firms in Mexico City that have sales and distribution arrangements around the country. Because of the distance from interior sources of supply, the northern border area has traditionally been oriented to a considerable degree toward the United States and has been allowed to operate under import rules less rigid than those applied to the inte- rior of the country. While efforts are being made to bring the border areas more actively into the econ- omy of Mexico, the border cities and the Baja Cali- fornia free zone can still be regarded as a market somewhat different from that in the rest of Mexico. The situation varies from city to city along the fron- tier. COMMERCIAL DISTRICTS The commercial regions correspond roughly to the U.S. consular districts in Mexico. These regions are: North Central Zone, Gulf Coast Zone, South East Zone, Central Zone, Western Zone, and Northern Border Zone. NORTH CENTRAL ZONE Monterrey Consular District. — The Monterrey consular district includes the State of Nuevo Leon, with the exception of the northern tip, southern Coahuila State, including Saltillo and Torreon, the entire State of Durango, the State of Zacatecas north of the Tropic of Cancer, and the State of San Luis Potosi except the Huasteca region in the east. II Although the city of Monterrey and much of the State of Nuevo Leon are on the coastal plain, most of this district is high altitude desert ranging in aridity from the complete desert of southern Coahuila to the relatively well-watered plains of southern Durango. Rainfall is erratic, and both potable and industrial water supplies are difficult to obtain. Monterrey, at an elevation of 1,800 feet and within 150 miles of the Gulf of Mexico, is uncomfortably hot in the summer. Winters are quite mild; severe freezes are infrequent. It is located 357 miles from Tampico, Tamaulipas State. The area around Tor- reon, Coahuila State, at an altitude of 3,000 feet, is hot and dry in the summer, pleasant in the winter but plagued by recurring dust storms. The States of Durango, Zacatecas, and San Luis Potosi, ranging from 5,000 to 6,000 feet in elevation, are rarely uncomfortably warm or extremely cold — generally maintaining an equable and very pleasant climate. Durango receives somewhat more rainfall than the other two States. July and August are nor- mally the months of heaviest rainfall. Total rainfall does not exceed 30 inches a year, and some parts of these States may receive less than 5 inches. The total population of the district exceeds 3.5 million. Monterrey, with an estimated population of 806,000 in 1965, is by far the largest and most im- portant city. It has had a population growth of better than 6 percent a year for the past 30 years and has more than 60 percent of the population of the State of Nuevo Leon. The second largest metropolitan cen- ter is La Laguna, an area comprised of Torreon, State of Coahuila and Gomez Palacio and Ciudad Lerdo, in the State of Durango, with a population of over 300,000. The city of San Luis Potosi in the State of the same name has a population of 186,000. The cities of Durango, State of Durango, and Saltillo, Coahuila State, have about 120,000 persons each. With the exception of Monterrey, the district is es- sentially agricultural. Development has been rapid in the industrial areas, principally Monterrey, and slow in the agricultural areas. The farming areas are hampered by erratic rainfall and inadequate investment in irrigation. The district has four export crops: citrus fruit, cotton, cattle, and hard fibers. The principal citrus area is the Montemorelos-Linares region about 40 miles south of Monterrey, with a small citrus-pro- ducing area near Rio Verde, in San Luis Potosi State. Cotton production is confined almost entirely to the Laguna region. Cattle ranching is prevalent throughout the district, and Durango has the largest herds. Dairy farming and large-scale poultry produc- tion are of increasing importance in the Laguna area and in the State of Nuevo Leon. The desert region of southern Coahuila State and northern Zacatecas State, the northern part of the State of San Luis Potosi, and the southern part of Nuevo Leon State comprise a zone in which one of the few means of livelihood is the gathering of lechugilla and palma fibers from native cacti. Fibers of those cacti are processed for export or woven into finished goods in the cities of San Luis Potosi, Matehuala, Saltillo, and Monterrey. Most of the farmers in the district make their liveli- hood from dry farming of corn and beans. Deciduous fruit and vegetables are grown. Viniculture and wine production is also developing, principally in Coahuila State. Industrial development is concentrated largely in Monterrey. Outside of Monterrey, extractive industries have been developed. Although in decline, mining is still important, with copper, lead, zinc, silver, gold, mercury, iron ore, gypsum, fluorspar, phosphate, lime- stone, and marble extracted or processed. Durango State produces iron ore, silver, gold and small amounts of fluorspar. Northern Zacatecas State has copper and mercury mines; lead, copper, gypsum, and fluor- spar are mined in San Luis Potosi State. A large smelter in San Luis Potosi produces blister copper, arsenic, and sulfuric acid. A smelter in Torreon pro- duces lead, cadmium, silver concentrate, and sulfuric acid. Zinc is refined in Saltillo; silver, gold, and lead, in Monterrey. Coahuila State has small amounts of phosphates which, after grinding, are exported through Monterrey. Other industries of importance are pine lumber in Durango; cotton ginning, edible oils, and soap in the Laguna area; woolen textiles; the assembly and repair of heavy railroad equipment as well as light manufacturing in San Luis Potosi; and a growing industrial complex in Saltillo producing agricultural tractors and implements, motorcycles, household appliances, castings (including automotive engine blocks), and pipe fittings. In Monterrey are located Mexico's second and third largest steel producers, a large glass manufacturing complex, one-fifth of Mexico's textile and clothing industry, a major brewery, a large and growing chemical industry, and a well-developed paper and cardboard industry. Also produced are cement, re- fractory bricks, tile and construction brick, proc- essed foods, and a wide range of manufactures, rang- ing from television sets to bus and truck bodies. Monterrey dominates northeast Mexico in commerce and banking. Regional trading centers outside of Monterrey are Saltillo, Torreon, Durango, and San Luis Potosi. San Luis Potosi is more in Mexico City's sphere of influence than that of Monterrey. Tourism is not of overwhelming importance. Every city in the district wishes to expand tourism but lacks either the climate or the attractions found in central and southern Mexico. Much of the tourist trade is of a transient nature — people going from the United 12 States south to Mexico City or elsewhere in the Re- public. Monterrey has made a strong effort to expand tourism and has been quite successful in attracting fall and winter conventions. Communications by rail and highway between the principal cities of the district are well developed and are getting better. Air connections between Monterrey, the United States, and Mexico City are adequate. The district has the advantage in both commerce and tour- ism of lying astride the principal north-south routes from the United States to Mexico City. MONTERREY STEEL: The Pittsburgh of Mexico is located al Monterrey in the northern State of Nuevo Leon just south of the United States-Mexico border formed by the Rio Grande River. Two of Mexico's largest steel producers are located in Monterrey. One of those two is the Cia Fundidora d Fierro Y Acero de Monterrey, S.A. Coke, iron ore, and limestone for blast furnaces 1 and 2 of that company are handled in this GULF COAST ZONE Tampico Consular District. — Tampico is the principal city in the Tampico consular district. Other important centers are Ciudad Madero (adjoining Tam- pico), Ciudad Mante and Ciudad Victoria, Tamaulipas State; Ciudad Valles, San Luis Potosi State; and Tuxpan and Poza Rica in Veracruz State. The district is divided between the coastal plain that extends inland from 20 to 120 miles and the low hills and mountains. In the northeast the moun- tains rise to 10,000 feet. The 1964 population of the district was estimated at 1,200,000. Of these persons, 500,000 are in Tamau- lipas State, 550,000 in Veracruz State, and 150,000 in San Luis Potosi State. Tampico and Ciudad Madero, combined, had an estimated population of 224,000 in 1965. Ciudad Victoria had an estimated 65,000, Poza Rica, 86,000, Ciudad Valles, 40,000, and Ciudad Mante and Tuxpan, 50,000 each. Growth should accelerate during the next few years. The construction of dams, irrigation systems, and hydroelectric plants planned for the Rio Panuco water- shed should stimulate rapid development. Farm crops and cattle are the economic bases of the district. Henequen, cotton and sugarcane are the most important crops. Most of the henequen is processed near Ciudad Victoria and exported in the form of cordage. About 80 percent of the cotton and a major part of the sugar are exported. Four sugar mills already operate and a fifth is being built. Cattle raising is important. Between Tuxpan and Papantla, citrus fruit are grown. Bananas and vanilla are produced in the Papantla-Gutierrez Zamora region. Oil refining has long been Tampico's major in- dustry. Beginning north of Tampico, oilfields extend southward to Papantla. Veracruz State. There are major refineries at Ciudad Madero and Poza Rica. Styrene and butadiene plants are being built at Ciudad Madero and a synthetic rubber plant is to be con- structed. Other industry includes cotton gins, a powdered milk plant, and a titanium dioxide plant. Tourism is not a major industry. Large numbers of tourists from the United States pass through the district, particularly on the Inter-American Highway, but most do not linger. Tampico is by far the most important commercial center and the only real port of the district. It is the second seaport in Mexico in tonnage handled after Veracruz. Tuxpan and Gutierrez Zamora, Veracruz State, are also listed as ports, but neither is capable of handling major traffic. Ciudad Victoria, Ciudad Mante, Ciudad Valles, Tuxpan, and Poza Rica are other commercial centers with zones of influence of not more than 50 miles. Veracruz Consular District. — The Veracruz con- sular district includes the southern three-fourths of the State of Veracruz (south of the Tecolutla River) and all of the State of Tabasco. The western boundary of the State of Veracruz is formed by the Sierra Madre Oriental. In the northern part of the State, the foot- hills of the range approach the coast, but the coastal plain begins to broaden southward from the port of Veracruz until in Tabasco the land is almost flat and in many areas, swampy. The littoral is humid and rainfall is heavy. How- ever, during the dry season the moisture-bearing winds pass over the lowlands, and the heavy precipitation occurs only as they reach the foothills. Thus, in the coastal plain of Veracruz there are many areas which are seasonally arid. Along the western borders of the State, rainfall is heavy throughout most of the year. The coastal plain is characterized by some forest but also much scrub growth, and the western mountainous areas by heavy tropical rainforest. In Tabasco, the coastal plain is much broader than in Veracruz, rain- fall heavier, and vegetation more luxuriant. The population of the district is about 3 million. The estimated population of the principal cities in 1965 was: Veracruz, 183,000; Jalapa, 83,000; Cor- doba, 60,000; Orizaba, 89,000; Minatitlan, 45,000; Coatzacoalcos, 50,000; San Andres Tuxtla, 25,000; and Villahermosa, 66,000. The principal occupation of the district is agricul- ture. Main crops are sugarcane, coffee, citrus fruits, corn, cacao, cattle, bananas, and pineapple and other tropical fruits. Agricultural exports are raw and refined sugar, coffee, oranges, pineapple. The export of bananas is beginning. Cacao is produced prin- cipally for domestic consumption. Lesser crops are vanilla, tobacco, broom root, sesame. A rubber plan- tation has been started in the southern part of the district. . The main industries are petroleum and sulfur ex- traction, petrochemicals, fertilizers, cement, chemicals, steel pipe and fittings, aluminum, sugar refining, textiles, and fishing. Hydroelectric power has been developed. The Raudales-Malpaso Dam will provide power for much of the State of Tabasco. The steel industry in Veracruz is expanding. The petrochemical industry in the Coatzacoalcos-Minatitlan area is grow- ing impressively. The textile industry in the Oriz Cordoba area is suffering from obsolescence of equip- ment, but is being modernized. A fish storage and processing plant has been built in Alvarado south of the city of Veracruz. The main trading centers arc Veracruz. ('ord<>|>a- Orizaba, Coatzacoalcos-Minatitlan, and Villahermosa. Although Veracruz is the largest city, the Cordoba- Orizaba area is a growing agricultural and industrial center. A petrochemical complex is developing around the Coatzacoalcos-Minatitlan area in the South. Tourism from the Capital and from other parts of Mexico is important; however, American tourists constitute only 10 percent of the visitors. The transportation system is being improved. Rail- roads connect Veracruz with Mexico City, Alvarado VERACRUZ CONSULAR DISTRICT: Plant of Aluminio, S.A. — the aluminum company — near Veracruz, Veracruz State, Mexico. CHEMICAL PLANT: Tetraethyl lead is manufactured in these buildings near Coatzacoalcos, Veracruz State, on the coast of the Gulf of Mexico by ai ' affiliate. 16 (Veracruz State), Merida (Yucatan State), and Guate- mala City, Guatemala. All are single track. Two- lane, hardtop roads connect the principal population centers with one another, with Mexico City, and with the United States. A superhighway connecting the Cordoba-Orizaba region with Mexico City is under construction. Veracruz, Minatitlan, and Villahermosa have ade- quate, nonjet airports that are stops on the two com- mercial daily flights (one each way) between Mexico City and Merida, Yucatan State. A round-trip flight between Mexico City and Veracruz is scheduled 4 days per week. The principal ports are Veracruz and the free port of Coatzacoalcos. Veracruz harbor has a depth of 28 feet and is the country's principal seaport. Coatza- coalcos harbor has a depth of 27 feet. Nanchital arid Minatitlan, adjoining Coatzacoalcos, have 20 and 18 feet depth, respectively. Alvarado and Frontera are both shallow water ports, used principally for coastal shipping, but the Frontera harbor is being dredged and will be used by oceangoing ships. SOUTH EAST ZONE Merida Consular District. — The Merida consular district covers the entire Yucatan Peninsula, borders on Guatemala and British Honduras, and comprises the following areas, with the estimated 1965 popula- tion in parentheses: State of Yucatan (670,000), State of Campeche (198,000), and the Territory of Quintana Roo (70,000). The total area of the district approxi- mates 64,278 square miles. Merida with an estimated population of 194.000 in 1965, is the largest city. Other centers include the commercial port of Progreso with an estimated population of 18,000, the fishing ports of Campeche and Carmen with 54,000 and 40.000, respectively, and Chetumal, capital of Quin- tana Roo (15,000). Merida, the commercial center of the peninsula, is 22 miles inland from the port of Progreso. Although Progreso has no natural harbor, a long pier facilitates the discharge of cargo. The climate of the district is tropical. The dry season is from March through May: the rainy season occurs from June through October. Annual rainfall in Merida averages 35 inches. In southern Campeche and Quintana Roo, rainfall averages 60 inches a year. Hurricanes from the Caribbean Sea occasionally strike the east coast, but rarely with great force. The economy of Yucatan is based largely on the growing and processing of henequen, a hard fiber used locally in the manufacture of cordage. Most of the cordage is exported. The henequen zone is located around Merida. Honey production and exports are growing. In the State of Campeche, the major industry is shrimp fishing. The market is the United States. The shrimp packing plants are located in the ports of Campeche and Carmen. Industries of lesser importance in the State of Campeche and the Territory of Quin- tana Roo are the gathering of chicle and the produc- tion of lumber, such as mahogany and Spanish cedar. These products are taken from the tropical forests in the southern portions of the peninsula. Tourism is steadily growing in importance. The Mayan ruins near Merida and the hunting and fishing resorts in Campeche and Quintana Roo attract an in- creasing number of American and Mexican tourists every year. Important factors in this development have been the improved roads between Merida and Mexico City and the daily flights between Merida and cities in the United States and Merida and Mexico City. Winter is the main tourist season. CENTRAL ZONE Mexico City Consular District. — The Mexico City consular district is the largest and most populous in the country. It includes the Federal District and the following states: Chiapas Guanajuato, Guerrero, Hidalgo, Mexico, Michoacan, Morelos, Oaxaca, Puebla, Queretaro, and Tlaxcala. The total area is about 163,000 square miles. The district contains over 40 percent of the country's population. The estimated population of the largest cities in the district in 1965 was: Mexico, D.F., 6 million; Puebla, 346,000: Leon, 271,000; Morelia, 129,000; Irapuato, 109,000: Toluca, 106,000; Oaxaca, 87.000; Queretaro, 81,000; Pachuca, 72,000; and Celaya, 77,000. Puebla, Morelia, Toluca, Oaxaca, Queretaro, Tuxtla Gutierrez, and Pachuca are State capitals. Mexico City dominates this entire district, as it does most of the other districts. Its influence extends over the five submarketing areas within this district. Those areas center around the following State capitals: Tuxtla Gufierrez (Chiapas); Oaxaca (Oaxaca); Pue- bla (Puebla): Queretaro (Queretaro); and Morelia ( Michoacan ) . The import business of this district is handled largely by Mexico City firms. A foreign firm in- terested in selling in the district will usually arrange for sales representation with a Mexico City-based firm that can distribute in other cities of the entire district. The climate in these parts varies with the altitude. Most of the area is mountainous, for the Sierre Madre Oriental extends down the middle. The highland areas, including Mexico City, have a temperate climate. The coastal sections are tropical. Considerable portions of the States of Oaxaca, Puebla, Mexico, Queretaro, and Hidalgo are arid. The district has large timbered areas with tropical, subtropical, and temperate zone forests. There are ex- tensive pine forests in the highlands. The district is important both industrially and agriculturally. It pro- duces roughly 20 percent of the sugar, 60 percent of 17 the coffee, 35 percent of the corn, 25 percent of the wheat, and 30 percent of the beans in the nation. Gold, silver, lead, and zinc are mined. It is the most highly industrialized district of the country. There are only two seaports worthy of note in this district. Acapulco, on the Pacific Coast, is a world famous ocean resort but is not important in the country's foreign trade. Salina Cruz in the Isthmus of Tehuantepec is primarily a fishing port. The Mexico City metropolitan area (including the surrounding suburban areas in the State of Mexico) has a population of over 8 million and is the political, cultural, and economic center of the Nation. It has over 35 percent of the industry, 30 percent of the purchasing power, and 36 percent of the motor ve- hicle registration in the country. Mexico's most ex- tensive and rapid industrial development has taken place here, and includes the following industries: automotive vehicles, iron and steel, cement, chemicals, textiles, food products, clothing, shoes, and appli- ances. The concentration of industry in the Federal District has prompted the Government to impose cer- tain restrictions on the establishment of new large plants there in order to encourage dispersion of in- dustry to other areas in the country. Mexico City is the financial capital and the hub of the railway, airline, highway, and communications systems of the country. It is connected by express- ways with Toluca, Queretaro, Puebla, and Acapulco and by good paved roads with Pachuca and Oaxaca. With its parks, boulevards, fine hotels and restau- rants, and nearby archeological sites and museums, Mexico City is also the tourist center of the country. Most of the tourists who travel to the interior of Mexico (1.4 million in 1965) visit Mexico City. Tourism contributes substantially to the city's economy. Puebla, Mexico's fifth largest city and the second in size in the district, is an important distribution and manufacturing center. It is 85 miles east of Mexico City on a toll road. At an altitude of about 7,000 feet, its climate is similar to that of Mexico City. Puebla's industry includes cotton textiles, cement, tiles, flour, abrasives, and paint. The Puebla basin is a fertile agricultural region. Leon is the third largest city in the district and the largest in the State of Guanajuato. It is in the northern end of the rich agricultural area known as the Bajio. At an altitude of 5,600 feet, its climate is mild. The city's largest industries are leather tanning and shoe manufacturing, and it is one of the three main footwear producing centers of the country. Irapuato to the south and Celaya to the southeast are also in the Bajio agricultural area and both are important distribution centers. Irapuato has developed as a processor of food products, especially of frozen strawberries for export. On the eastern fringe of the Bajio is the city of Queretaro which is a distributing center for the sur- rounding agricultural area. Its climate is temperate. Because of its strategic location from the standpoint of transportation and its proximity to Mexico City — 150 miles to the southeast — a number of manufac- turing plants of more than local importance have been established there. It has food-processing fac- tories, feed plants, textile mills, and a sewing ma- chine factory; it has established recently an indus- trial park in which factories have been erected for the manufacture of both construction equipment and components for the automotive vehicle industry. Morelia, the capital of the State of Michoacan, is primarily a distributing center for this agricultural and forested state but has little industry. It is a colonial town in which the architecture has been preserved, and it is popular with tourists. At an elevation of 6,000 feet, the city enjoys a temperate climate. Toluca, about 45 miles west of Mexico City on an expressway, is the capital of the State of Mexico. It is the distribution center for a sizable agricultural area. Recently, in response to Government policy discouraging overconcentration of industry in Mexico City, it has gained several important, new manu- facturing plants. Among these plants, are factories producing automobiles, chemicals, pharmaceuticals, pigments, clocks, table flatware, and synthetic textile fibers. Toluca's climate at 8,500 feet is somewhat cooler than Mexico City's. Pachuca, the capital of the State of Hidalgo, is about 60 miles north of Mexico City. Somewhat higher than Mexico City, its climate is cooler. It is a distributing point for the semiarid farm country of the area and for the mining that still remains. Pachuca was once the center of a rich mining dis- trict which has now declined in importance owing to the depletion of the ores. The city has not attracted new industry in recent years, and because of its prox- imity to Mexico City, it has not developed significantly as a merchandising center. Oaxaca City is the capital of the State of Oaxaca, one of the largest States in the Republic. Although it is located only about 300 miles south of Mexico City and is connected with it by rail, air, and paved highway, the city is somewhat isolated because it is not an important crossroad point. However, the city is the hub of transportation for the State. In recent years, highways have been built from this capital to both the Gulf and Pacific coasts and now connect areas which formerly could be reached only by animal and air transport. The Pacific coast termi- nals of these roads are being joined by a coastal highway under construction from Acapulco to Salina Cruz. The economy of the State and the city is based on agriculture, for there is practically no industry. Oaxaca is developing as a tourist center because 18 of its good climate and nearby archeological sites. Tuxtla Gutierrez, the capital of the State of Chia- pas, is a pleasant city located in a valley in the northern part of that State. It has good highway and air connections with Mexico City but no rail- road. It serves as a distributing center for the sur- rounding agricultural area. WESTERN ZONE Guadalajara Consular District. — The Guadala- jara consular district covers 54,800 square miles and includes the States of Jalisco, Aguascalientes, Colima, and that part of Zacatecas south of the Tropic of Cancer. The 1965 population estimates of the principal cities of the district were: Guadalajara, 1 million; Ciudad Guzman, 36,000; Aguascalientes, 151,000; Colima, 54,000; Fresnillo, 37,000; and Zacatecas, 39,000. Guadalajara is Mexico's second largest city and the capital of the State of Jalisco. Aguscalientes, Colima, and Zacatecas are the capitals of the States of the same names. The dominant physical feature of the area is the rugged Sierra Madre Occidental which traverses the region from north to south and separates the narrow tropical coast of the States of Jalisco and Colima from the mile-high interior plateau. On the high semiarid plains of the State of Zacatecas, the elevation ranges from 7,000 to 8,000 feet above sea level. In the State of Jalisco and Aguascalientes, the elevation is less than in the State of Zacatecas. The city of Guade- lajara is located at 5,100 feet. The dry season lasts from October to June. Year-round temperatures in the district range from cool in Zacatecas, to mild in both Aguascalientes and the Jalisco plateau, and to tropically warm in Colima and coastal Jalisco. Jalisco is the only one of the four States in the district with important industry. The leading ones are edible oils, sugar, food products, tanning and shoe manufacturing, chemicals and pharmaceuticals, tequila, textiles, and glass. Jalisco has sufficient electricity. Although Jalisco State is industrializing, the dis- trict is primarily agricultural. Jalisco produces nearly a third of the nation's corn as well as beans, sugar, garbanzos, wheat, and peanuts. Tourism is important. An appealing climate, well-known handicrafts, scenery, and beaches attract tourists to Guadalajara, Chapala, and Puerto Vallarta throughout the year. New tourist accommodations are being built. The Guadalajara area is favored by more than 7,000 retired Americans. A COMPONENT OF THE MEXICAN PRODUCT: The rayon tire cord is being supplied by this plant of Celai 1,300 persons. arket for rayon filament, short rayon fiber, and la, S.A., Zacapu, Michoacan State, which employs Jalisco State has good paved highways and all- weather roads. The network is adequate except in the coastal areas and in the extreme northern part of the State. Air Service connects Guadalajara with Mexico City, Puerto Vallarta, Mazatlan, and Tijuana as well as with Tucson, Arizona, and Los Angeles, California, by both jet and prop planes. A number of small airlines and charter services fly between Guadalajara and the cities of the neighboring States. There is overnight train service to Mexico City; the Pacific Railway (Ferrocarril del Pacifico) runs north- ward to Mazatlan and the U.S. border. A railroad spur line runs from Guadalajara to Manzanillo on the coast. Guadalajara dominates the central western portion of Mexico. It is one of the country's most modern cities with wide streets, pleasant residential areas, and a modern business district. The State of Aguascalientes, which is mainly agri- cultural, produces guayaba, chiles, grapes, beans, corn, and wheat. It is becoming a leading grape producer. It has no significant industry except for the general repair shop of the National Railways (Ferrocarriles Nacionales) in the city of Aguascalientes. A main north-south highway cuts directly through the center of the State, connecting with other major towns and serving as an important tourist artery. The State of Zacatecas is mountainous and the land is poor. The climate is arid and cold. Rains are irregular and crop failures are frequent. The State's principal industry is mining. A 400-year old mine in Fresnillo produces lead, zinc, and copper concentrates. Near the capital, the State government has installed a smelter to encourage miners to resume exploitation of the low-grade ores in the area's many silver mines. A modern meatpacking plant in Fresnillo exports to the United States. Most tourists in Zacatecas are on their way elsewhere; thus, tourism does not contribute importantly to the economy. Colima is primarily agricultural. Sugarcane, corn, and beans are raised in the valley around the capital. The coastal region grows copra, bananas, limes, sesame, and papaya. Bananas and some papaya are exported. Substantial, high-grade iron ore deposits are largely undeveloped because of their inaccessi- bility. Several plants produce lime oil. Tourism is becoming increasingly important. The winter climate is good, the beaches are attractive, and the Pacific waters afford good fishing. The major cities — Manza- nillo, Tecoman, and Colima — are connected with good highways leading to Guadalajara on the direct road to Mexico City. The port of Manzanillo has an esti- mated population of 25,000. The harbor is large and has a pier for ships drawing up to 35 feet. Mazatlan Consular District. — The Mazatlan con- sular district, composed of the States of Sinaloa and Nayarit totaling an area of 32,927 square miles, is bound on the east by the Sierra Occidental, and on the west by the Pacific Ocean. The lowlands near the coast and the flat areas near or adjoining the rivers flowing into the ocean are rich agricultural lands. The rainy season, May through October, is hot and subhumid. The rest of the year is dry and pleasant, attracting many tourists. The population of Sinaloa in 1965 was estimated at 965,000 and that of Nayarit at 453,000. The prin- cipal cities are, by population: Culiacan (113,000) and Mazatlan (100,000) in Sinaloa and Tepic (77,000) in Nayarit. Northern Sinaloa is growing rapidly while southern Sinaloa and the State of Nayarit are advancing at a gradual pace. Recent agricultural expansion in the Culiacan and Los Mochis areas is the result of the development of new lands under irrigation. Dams have been constructed in the Fuerte Valley and on the Rio Culiacan. Irrigation provided by the recently constructed Lopez Mateos Dam near Culiacan will increase agricultural production. A ready U.S. market for winter crops such as tomatoes and cantaloupes has contributed immensely to the prosperity of this area. Cotton and wheat are being produced in in- creasing quantities. Tobacco production is becoming the most important cash crop in the State of Nayarit. Sugar is also important. Industry is limited principally to a cement plant and a small shipyard which specializes in shrimp boat construction. Both are located in Mazatlan. Mazatlan is the most important seaport on the Pacific Coast. Winter tourism is growing because of the balmy pleasant weather, beautiful beaches, and proximity to the United States. The district is traversed from north to south by a main highway extending from the U.S. frontier to Mexico City. Mazatlan and Durango are connected by a paved road. NORTHERN BORDER ZONE Tijuana Consular District. — The Tijuana con- sular district embraces the State of Baja California and the southern territory called Territorio Sur de Baja California, except for the municipality of Mexi- cali, which is the capital of the State. The peninsula of Baja California is divided at the 28th parallel, which constitutes the boundary between the two en- tities. The largest city of the district is Tijuana; others are Ensenada and Tecate. The largest cities in the Territory are La Paz, the Capital, and Santa Rosalia. The district is semidesert and mountainous with some fertile valleys along the Pacific coast. A moun- tain range traverses the entire peninsula. With the exception of a small pine-covered area in the north, the mountains are barren. The northern and central 20 parts of the district have a temperate climate with warm summers and cool winters. In the Territory, the climate is semitropical and humid. In the State, rainfall averages less than 15 inches per year and in the Territory, slightly more. The population of the district is estimated at 400,000. Tijuana had an estimated population of 251,000 in 1965, Ensenada 64,000, La Paz 33,000, and Tecate and Santa Rosalia 10,000 each. One of the most important factors to be considered in the State's economic potential is its tremendous population growth. For example, Tijuana had a population of only 20,000 as recently as 1944. Olives, grapes, wheat, potatoes, tomatoes, and peppers are the principal crops in the State, and wheat and cotton in the Territory. Experiments are underway in the cultivation of citrus crops but as yet there is little production. Most of the crops are processed locally and sent to the interior of Mexico. Principal products of industry are cement, canned and frozen fish products, beer, wine, cigarettes, coffee, flour, pasta, canned vegetables, and lumber. In addi- tion, a modern dairy industry supplies fresh milk to the Baja California market. Most of the products are consumed within the district. Exceptions are the canned and frozen fish, wine, beer, cigarettes, and paint; most of those items are shipped to the interior of Mexico and some to the United States. The district is a free zone, which means that many goods can be imported without payment of duties or an import license. The free zone has made the dis- trict in the main an importer, with most of the im- ports coming from the San Diego and Los Angeles areas. In recent years, Japanese and European im- ports, mostly soft goods such as clothing, have entered the market. The hard goods market, however, is still predominantly supplied by the LTnited States. How- ever, more and more products are gradually being made subject to import licensing and the payment of duties in order to expand the market for Mexican products. The largest single industry in the district is tourism. Twelve to 15 million "border" tourists visit the dis- trict each year and spend an estimated $150 million. A FACTOR IN GROSS NATIONAL PRODUCT corner of Lake Chapala on the railroad, Jalii acetate filament, triacetate filament, and nylon S.A., plant in Ocotlan, located at northeast State, Mexico. Its products include acetate filament, colored The Mexican Government is well aware of the benefits of tourism, and during 1963 completed a modern border entrance facility and a two-lane toll highway between Tijuana and Ensenada. New motels, hotels, and other tourist facilities are under construction. The road system of the district is inadequate but being improved. The two-lane Ensenada toll high- way has made travel easier. Funds have been au- thorized for the construction of a road around the southern tip of the peninsula, but no starting date for construction has been announced. By 1970, a trans- peninsula highway from Ensenada to La Paz is ex- pected to be built. Ensenada is the district's main port. Cotton from the Mexicali Valley is the principal export. A small boat repair yard is located at the port. Electrical power for the State of Baja California is provided largely by a modern thermoelectric plant at Rosarito, some 15 miles south of Tijuana. Con- struction of a salt water conversion plant at Rosarito is expected. Small-scale mining of iron ore is taking place in the Ensenada area, and exploration for other minerals is underway. Oil has been located in the peninsula but not yet developed. The main problems are a chronic shortage of fresh water and a too great dependence on tourism. Mexicali Consular District. — The Mexicali con- sular district takes in all of the Mexicali Valley south to the Gulf of California fishing village of San Felipe and extends eastward beyond the Colorado River into that part of Sonora which includes the important border transit town of San Luis. The Mexicali Valley, which is the extension of California's Imperial Valley, is a flat, hot, arid desert area bordered on the west by a mountain range. It was once completely under the Gulf of California. This land has been made productive by irrigation from the Colorado River. The principal city in the district is Mexicali, which is the capital and largest city of the State of Baja California. With an estimated population of 291,000 in 1965, it is the seventh largest city in Mexico. It is reported to be one of the fastest growing cities in the nation because of its attractive opportunities for employment and investment. The economy of the Mexicali Valley is based pri- marily on agriculture. The area produces about one- fourth of Mexico's cotton as well as significant quan- tities of wheat, alfalfa, and barley. Tourist earnings play a secondary role in sustaining the economy of the valley. Active commerce with the United States contributes heavily to making this one of the most prosperous regions of Mexico. Industrial development has been limited thus far mainly to gins and cottonseed oil. However, in addi- tion to 35 gins and 3 oil mills, there are several fertilizer and insecticide plants, 2 flour mills, 1 large brewery, 7 bottling plants, a truck assembly plant, food processing industries, and machine shops. In order to foster the development of industry in the region, the State government has promulgated a law granting franchises and tax exemptions for periods up to 10 years to new and needed industries. About a million persons pass the international border per month in each direction at Mexicali. However, only a few of them enter Baja California as genuine tourists; most of them are border-crossers living in the area. The district's most popular tourist attraction is San Felipe, 125 miles south of the border, where lively sport fishing in the Gulf of California attracts many U.S. sportsmen. This district enjoys the same free zone status as Tijuana, a status which has stimulated commerce on both sides of the border and has greatly helped in the development of this relatively new State. The Mexicali Valley is connected to the interior of Mexico by an adequate hard-surfaced highway and by the Sonora-Baja California railroad. The valley also has air service to major Mexican cities. The district does not have a seaport. Good highways, rail, and air connections link the valley with U.S. cities. Nogales Consular District. — The Nogales con- sular district includes the entire State of Sonora except for the small triangle of desert west of the Sonoyta- Puerto Penasco highway. The mountainous arid eastern area which borders the State of Chihuahua and the northwestern dry region is noted for the mining of copper, lead, graphite, gold, and silver and for undeveloped uranium deposits. The extracting and smelting of copper ore is the most important of the mining operations. The north central plateau is suitable primarily for cattle grazing. Northern Sonora exports over 175,000 head of cattle to the United States annually. The most productive zone includes the southern flat coastal land and river valleys which support ex- tensive agriculture through irrigation. The rainfall of 14 inches and less normally would limit agriculture to ranching and some marginal dryland farming. However, in the past 15 years, nine large dams have been constructed and their reservoirs have provided sufficient water in the southern half of the State for both large-scale irrigation and extensive hydroelec- tric power. This rapid development of agricultural production is the most significant economic factor in the in- creasing prosperity of the region. Former desert lands have been transformed into intensively cultivated fields producing wheat, cotton, winter vegetables, corn, and oilseeds. Almost 90 percent of Mexico's wheat is produced here. A sizable proportion of Mexico's winter vegetables are also grown in the district. Tomatoes are the principal winter crop. Estimates of the total annual value of the winter vegetables 22 shipped from this area in recent years range up to $60 million. Industry in the State of Sonora is tied to agriculture in the main although there are insecticide and ferti- lizer plants, flour mills, cotton gins, meatpacking plants, shrimp packing and freezing facilities, and a cement plant. Some small-scale shipbuilding is done at Guaymas where there is also a small factory producing fish flour. Large shrimp fleets operate out of the Port of Guaymas. The substantial catches are frozen and shipped by rail and truck to the United States. The port facilities at Guaymas are being renovated and redeveloped under a large scale project of PRONAF. Guaymas is also an attractive place for many tourists. Tourists from the western part of the United States enter Mexico at the free zone city of Nogales, which is the northern terminus of Mexico Highway No. 15. the major west coast highway leading to Mexico City. The railway, Ferrocarril del Pacifico, S.A., serves the west coast of Mexico and terminates in Nogales where it makes connections with the Southern Pacific. Mod- ern airports have been built at Ciudad Obregon, Guaymas, Hermosillo, and Nogales, with air service daily between Mexico City and Hermosillo as well as Tucson, Arizona. The number of U.S. tourists entering Mexico through Nogales has increased appreciably each year for several years. Improved accommodations such as better hotels and restaurants are primarily re- sponsible for the increase. The estimated population of the consular district for 1965 was nearly 1 million. The capital of the State, Hermosillo, was first with 142,000 inhabitants and Ciudad Obregon next with 100,000. Nogales, Guaymas, and Navojoa had about 50,000 inhabitants each. Ciudad Juarez Consular District. — The Ciudad Juarez consular district comprises the entire north- western State of Chihuahua, largest in the Mexican Republic, with an area of 94,831 square miles and an estimated 1965 population of 1.5 million. The State increased in population by 45 percent between 1950 and 1960; it continues to attract outsiders with its growing industry and high wages. Its principal cities are Ciudad Juarez (estimated 1965 population 379,000) on the frontier opposite El Paso, Texas; the capital, Chihuahua (206,000), in the center of the State; Delicias (58,000), an agricultural center just south of Chihuahua; and Hidalgo del Parral (54,000) located in the mining area on the southern border. All four cities are located on the excellent Ciudad Juarez-to-Mexico City-all-weather highway No. 45. Most population centers in the State are accessible by fair-to-good roads, with several addi- tional important roads presently under construction. A main line of the Mexican National Railways runs north and south, connecting Ciudad Juarez and Chi- huahua with Mexico City. The Chihuahua-Pacific Railroad links Chihuahua with the west coast across the Sierra Madre Occidental, thus providing access to Pacific ports. The climate is semiarid in the central plains regions, with extremely arid conditions in the desert to the east and a subhumid climate in the mountainous areas to the west. The four seasons are distinct in the State, with temperatures ranging from 22° to 109 °F. The elevation of the State goes as high as 3,000 feet. The State divides conveniently into four sectors from a center at the city of Chihuahua. The north- east area, sharing a long boundary with West Texas, is very dry, mostly desert, supporting marginal cattle raising along its western edge. The southeast sector is less dry and encompasses the most important agri- cultural area of the State. Much of that area is irri- gated. The southwest section is very mountainous and lightly populated. In it is located Copper Canyon which rivals the Grand Canyon of Arizona in beauty and size. The canyon is now accessible to tourists by the Chihuahua-Pacific Railroad which makes a brief stop near the edge of the canyon. The north- west portion of the State is bordered on the west by the mountains of the Sierra Madre Occidental. On the eastern plains of this region are found the principal cattle ranches and important farming Forest products, cattle, and minerals are the prin- cipal resources of the State. With nearly 4 million acres of exploitable forest land, Chihuahua produces one-third of Mexico's commercial lumber and pulp- wood. Of cattle and meat, it is the largest exporter and vies for first place as producer among the Mexican States. Mining, agriculture, and commerce contribute about equally to the State's economy, following the forestry and cattle industries in importance. Chihua- hua accounts for one-third of Mexico's total mineral production, including two-thirds of all lead and zinc produced in the country. Also important is the pro- duction of copper, silver, and iron. Only a million and a half acres of land are under cultivation, about one-third of the cultivated land is irrigated. Cotton grown for export has traditionally been the most important agricultural crop, although production has been declining for several years. Beans grown for domestic consumption are next in im- portance, followed by corn and wheat. Other crops are oats, alfalfa, peanuts, and apples. The two trading centers of importance in the State are Chihuahua and Ciudad Juarez. Chihuahua serves the agricultural and commercial activities of the cen- 23 tral and southern portions of the State. Commercial activity in Ciudad Juarez is dependent to a large degree on tourism, as most local citizens purchase many of their requirements, especially clothing, in the United States. Ciudad Juarez is working to in crease its attractiveness for tourists who visit through- out the year. A modern racetrack was opened in 1963. and PRONAF is finishing construction of a modern convention and exposition center. This center will include a large luxury hotel, exposition hall, com- mercial shops, museum, and a handicrafts center. Tourism is much less developed in the rest of the State although Chihuahua city has several comfortable hotels. Chihuahua is actively seeking new industries and is offering land grants and tax reductions as induce- ments. Although it has grown industrially over the past several years, industrialization is still in the beginning stages and is expected to grow at a steady pace. Leading industries include wood pulp and viscose factories, lead and zinc smelters, plywood plants, a steel mill, cement and meat packing plants. Piedras Negras Consular District. — The Piedras Negras consular district covers that part of the State of Coahuila from the Rio Grande to an east- west line drawn 30 miles south of Monclova. Piedras Negras with an estimated population of 57,000 in 1965 and Monclova with 60,000 are the largest cities in the district. Other principal cities by population are: Nueva Rosita (40,000), Muzquiz (38,000), Sabinas (30,000), and Ciudad Acuha (23,000). This district is generally semiarid. Least arid is the portion adjacent to the Rio Grande from Ciudad Acuha southeast, including Piedras Negras and the area south approximately to Sabinas. The climate is dry. Summer temperatures prevail 6 to 8 months of the year, with frequent readings as high as 103° to 107° Fahrenheit in July and August. Severe summer drought is not unusual. The October-May period brings frequent rain and drizzle and occasional frost and ice. This district is predominately agricultural. More than half of the total area is used for cattle ranching. Principal crops are cotton and wheat. The Altos Hornos de Mexico, S.A., steel mill in Monclova, the largest iron and steel producer in the nation, has brought in several light industries. There are coal mines and coke ovens and a zinc smelter. The district produces fluorspar ore for export. Allende has a textile plant. Piedras Negras and Monclova are the principal trading centers of the district. Most merchandise moved in commercial channels in the district is of Mexican origin, and imported merchandise usually is obtained from Mexican importers rather than from foreign sellers direct. Residents purchase much of their consumer's goods in the United States. Nearly all of the tourists who enter at Piedras Negras are on their way to the interior of Mexico. There is little cause for tourists to tarry in this district, which can be transitted easily in 4 hours. The Piedras Negras-Mexico City highway links the principal cities in the district directly with Saltillo, the capital of Coahuila. The district is served by the Mexican National Railways, which link the district's principal cities wth Saltillo and other cities in Mexico. Thrice-weekly air service connects Piedras Negras and Monclova with Saltillo and Mexico City. Development has been slow in the district with the exception of the industrial expansion in Monclova. About to start operating in Nava — 25 miles south of Piedras Negras — is a 37,000 kw. thermoelectric plant which will supply electric power to cities throughout the district. Amistad Dam, to be completed in about 1969 on the Rio Grande just above Ciudad Acuha, will provide water for irrigation of a large area of arid land adjacent to the dam. It will also supply electric power. PRONAF is giving Piedras Negras an impressive facelifting. Ciudad Acuna is expected to be improved also. Nuevo Laredo Consular District. — The Nuevo Laredo consular district comprises that part of the State of Nuevo Leon lying north and west of a line drawn across the State through Golondrinas (which is not included in this district) and Paras (which is in- cluded) ; and that part of the State of Tamaulipas that lies north and west of a line drawn just north of the city of Mier, from the Rio Grande westward across the State. The land area approximates 5,200 square miles. The main cities and towns of the district are Nuevo Laredo, Nueva Ciudad Guerrero, Ciudad Ana- huac, and Lampazo. The population for the district was estimated at 140,000 in 1965. The land is mostly flat, with a few rolling hills. The climate is hot and arid most of the year, and there is very little cold weather, even during the winter months. Agriculture and cattle raising are the main occupa- tions. Products of agriculture are corn, sorghum, grain, and wheat. Cattle is normally exported to the United States. The main products of industry are shortening, soap, ice, cottonseed cake, cottonseed cooking oil, and clothing. Tourism is important. Nuevo Laredo is the largest port of entry for tourists from the United States. It holds first place as a port of entry and exit in the import and export of merchandise, and that trade is one of the main sources of its income. Matamoros Consular District. — The Matamoros consular district is in the extreme northern part of the State of Tamaulipas. The main cities and towns 24 are, by population: Matamoros (127,000), Reynosa (107,000), Valle Hermoso (19,000), and San Fer- nando (6,000), according to 1965 estimates. The area is flat and covered with light vegetation. The climate is mostly hot and humid in the summer. The mild winter season is from late November to March. Agriculture and petroleum refining are the most important economic activities. Principal agricultural products are cotton, sorghum, and corn. Tourism con- tributes importantly to the economy. Reynosa is a petroleum center with a small refinery. POPULATION AND PRINCIPAL CITIES Mexico's population was an estimated 40.4 million in mid-1965. It had been counted in the 1960 census at 34,928,134 and in the 1950 census at 25,779,246. The increase in population averaged 3.078 percent annually in 1950-60 and an estimated 3.5 percent an- nually in 1961-64. The population of each of the 32 States and Territories is shown in table 5. Table 6 shows the population of the 38 largest cities accord- ing to the 1960 census and their estimated 1965 popu- lation. Fifty-five percent of Mexico's population is mixed; 15 percent, white; 29 percent, Indian; and 1 percent, unspecified. Spanish is the official language, and the predominating religion is Roman Catholic. About 30 percent of the population lives in the cen- tral region where the Federal District is located. Over half of the population is under 20 years of age, and 71 percent of the population above the age of 6 is literate. The 1960 census showed over 15,000 Americans liv- ing in Mexico. Apart from a large number of re- tirees, most of the 15,000 are engaged in manufactur- ing and service industries. Many are representatives iill department of a steel mill in Monclc or employees of U.S. firms. Almost 3,000 Americans live in Mexico City and its suburbs. About half of Mexico's population lives in cities and towns of 2,500 or more inhabitants. There were 419 population centers of 5,000 or more inhabitants each in 1960 (see table 7). The Mexico City metropolitan area, which is comprised of the Federal District and the surrounding suburban and industrial areas of the State of Mexico, overshadows the rest of Mexico. Mexico City is the political, financial, industrial, com- mercial, and cultural center and the Capital of the Nation. According to the 1960 census, the Federal District, including Mexico City, had a population of 4,870,876. It is estimated that the District had a population of 6 million in 1965 or about 15 percent of the country's population. Mexico City has the highest concentration of skilled labor, electric power, excellent communications, and a favorable climate. About 50 percent of the nation's Economically Active Population by Major Occupations, 1964 Thousands of Perse TECHNIQUE AND FACTORY MANAGEMENT: Mech- anization of packing has come a long way in this cigarette factory in Monterrey. industry (in terms of value of production) and over 55 percent of the nation's labor force are located there. Important industries include publishing, chem- icals, textiles, apparel and footwear, automobile as- sembly, metalworking, pharmaceuticals, construction, and all types of consumer goods. Mexico's second largest city is Guadalajara, Ja- lisco State, with a population of 734,346 in 1960 and an estimated 1 million in 1965. Situated in an agri- cultural and livestock-producing region, Guadalajara's industries include textiles, metal products, tanning, footwear, tequila, chemicals, and cement. Monterrey, Nuevo Leon State, is the country's third largest city with a population of 609,993 in 1960 and an estimated 806,000 in 1965. It is the second most important industrial center after Mexico City. Im- portant industries in Monterrey include iron and steel, metalworking, glass, textiles, apparel, beer, chemicals, paper and paperboard, cement, truck and bus bodies, tiles, refractory and construction brick, and a variety of consumer items. Monterrey's location on the main rail and highway connections between Nuevo Laredo, the principal border point of entry into Mexico, and Mexico City has favored its development on account of both trade and tourism. Mexico has 34 seaports of which the largest and most important are located on the Gulf of Mexico. Best known and most active of these ports are Vera- MONTERREY GLASS: A glass pitcher is inspected care- fully during its manufacture in Monterrey, INuevo Leon State. Glass products constitute one of the principal in- dustries of Monterrey. Still other industries in the city produce chemicals, consumer products, metals, and tex- tiles. Its output of goods gives Monterrey an importance next to Mexico City itself as an industrial center in Mexico. A NEW YEAR: Classes have just resumed for the boys and girls of this private grade school, Coahuila State, Mexico. Population by Sex and Age Groups - 1960 Millions of Female: 2.7% 2.9% 0.8% <^ 0.5% 0.6% 1.1% .1.2% 1.5% 1.7% 1.9% 3.4% 4.0% .0% 6.4% 7.7% > 0.8% 0.5% 0.6% 1.1% 1.1% 15% 2.0% 2.8% 3.0% 3.8% 4.4% 5.1 6 1% 7.5% , Millions of Males io Estadistico de los Estados Unidc cruz, Veracruz State, and Tampico, Tamaulipas State. The most important ports on the west coast are Man- zanillo, Colima State; Mazatlan, Sinaloa State; Guay- mas, Sonora State; and Ensenada, Baja California State. Nuevo Laredo, the most important land port of entry, is located on the Mexico-United States border 150 miles south of San Antonio, Texas, and accounts for nearly one-third of the value of the nation's im- ports. INCOME AND CONSUMPTION PATTERNS Per capita income for 1965, estimated at $410, is among the highest in Latin America. However, ap- proximately one-half of the population reportedly has a per capita income of less than $125 per year. This unbalanced income distribution, principally affecting the primary activities, such as agriculture, livestock raising, fishing, and forestry, is considered to be an important obstacle to Mexico's increased rate of eco- nomic development and the attainment of the Alliance for Progress objective of an annual per capita in- come growth of 2.5 percent. The Alliance for Prog- ress is a program under which the United States will provide long-term support for economic development programs created by the developing Latin American countries in a 10-year period beginning in 1961. Three-fourths of the families in Mexico accounted for one-third of the personal income of the Nation and less than 2.5 percent of the families accounted for almost 25 percent of the total in 1957 as shown in table 8. Table 9 shows the distribution of family ex- penditures. These data sharply reflect the compara- tively small size of the internal market for consumer goods and services. Income distribution has improved only slightly since 1957. The annual per capita gross product by States in 1960 show Baja California leading with $821. The northern tier of States has a consistently high per capita gross product as follows, in dollars: State or Territory A Baja California, N Distrito Federal Nuevo Leon Tamaulipas Sonora Chihuahua Baja California, S. 1 Quin i Roo 1 State or Territory Amoui San Luis Potosi 217 (;u:n of Personal In come, 1957 Number of families t7on ge monthly Curr e (dollars) Famil ulative percent ,049,112 68.00 543,131 104.80 616,968 160.32 151,688 434.80 134,998 927.36 Table 9. — Percentage Distribution Expenditures, I960 Type of Expenditure Household Expenses > Apparel and Shoes .. Entertainment Taxes and Interest Payments Vehicles, furniture, electrical applia durable goods Source: Ifigenia M. De Navarrete, La Distribution del hit El DcmrroUa Ecaiio mico (h- Mc.rico Instituto de Investigariom nomicas Universidad Nacional Autonoma de Mexico, Mexico, Source: Secretaria de Industri; uestras, Ingreso n Egreso Famili 1 Rent and utilities. - Real Estate, bonds, securities, and savings account! 3 Soaps, toilet articles, cleaning, school, medical i avel, cigarettes, donations, newspapers, etc. Percentage [Millions of Source: Bank of Mexico, S.A., Mexico, D. F., ^ 1 1950 GNP: 40.577 million pesos; one peso in $0,115: since April 1954, one peso has been equal fc -• Preliminary data. s of pesos at 1950 1 Agriculture r 909 Livestock 1 243 Petroleum and col c Manufacturing 8,437 . 10,750 . 1,294 . 5,320 Less: net intere and dividends Source: Bank of Mexico, Mexico, D. F. 1 One peso in 1950 was equal to $0,115; as equal to $0.08. Table 12. — United States Exports to Mexk cipal Commodity Gr< ve animals Live anit Meat, fr Milk an. -sh, chilled or frozen Barley, Corn, un nmilled milled Cereals, other 1 Meal and flour Meal and flour Cereal preparat Fruit, fresh, ai , other than whea 812,976 805,161 8,335 32,961 739,697 811,269 ,015 738,721 857,946 1,076,387 77,260 50,067 780,686 1,026,321) 68,823 52,204 5,910 5,907 1,389 1,896 9,507 8,152 lity Sec-lions and Principal Commodity Groups, 1959-65 i of dollars] n and commodity g Vegetables Sugar con) Fodder Lard, margarine and shortening Beverages and tobacco Tobacco, unmanufactured Tobacco manufactures Crude materials, inedible except fuels Hides and skins (except for skins) undressed Oilseeds, oil nuts and oil kernels Crude rubber (including synthetic and reclaimed) . Wood in the rough or roughly squared Wood shaped or simply worked Pulp and waste paper Wool and other animal hair Synthetic and regenerated (artificial) fibers Ferti Minerals, other than stone, sand, sulphur and abrasi Iron and steel scrap Ores and concentrates of non-ferrous base metals ... Crude animal materials, n.e.s Crude vegetable materials, n.e.s Mineral fuels, lubricants and related materials Coal, coke and briquettes Petroleum, crude and partly refined for further refin Petroleum products Gas, natural and manufactured Animal and vegetable oils and fats .. Fixed vegetable oils, soft Chemicals Inorganic chemicals: Elements, oxides, and halogen salts .. Other inorganic chemicals Mineral tar and crude chemicals from coal, petroleum an Coal tar dyes, natural indigo and color lakes Pigments, paints, varnishes and related mate Medicinal and pharmaceutical products Essential oils, perfume and flavor materials .. Soaps, cleansing and polishing preparations .. Fertilizers, manufactured Explosives and pyrotechnic products (includin sporting ammunition) . hunting and Plas Other erials, regenerated cellulose and f Machinery and transport equipment Power generating machinery, other than electric Agricultural machinery and implements Olli.e achin Mi t.i I ■•. mi King machinery Textile and leather machinery Machines for special industries Machinery and appliances (other than Electric power machinery and switchgear K.M.ipin.nt for distributing electricity Domestic electrical equipment 729 Other electrical machiner 731 Railway vehicles 732 Road motor vehicles 733 Road vehicles other than 734 Aircraft 735 Ships and boats 8 Manufactured goods 621 Materials of rubber 629 Articles of rubber, n.e.s. ers, plywood I J other wood, ' :onstituted" wood ; chemicals 1( Table 12. — United States Exports to Mexico by Commodity Sections ; — continued [Thousands of dollars] id Principal Commodity Groups, L959-65 Commodity suet Wood manufactures, n Paper and paperboard Articles of paper pulp, Textile yarn and threa< Cotton fabrics, woven (not i ■I board larrow or special fabrics- Textile fabrics, woven, (knitted or crocheted) other than cotton fabrics Special textile fabrics and related products Made-up articles wholly or chiefly of textile materials, n.e.s. .. Lime, cement and fabricated building materials, except glass and clay : •rial. Clay and refractory c erials...... Ine-ots and other prir and pipes) of iron Iron and steel bars ( including sheet pi nary forms (inc uding bla nks fot tubes , rods, angles inir) shapes and s Universal*, plates and sheets, iron or steel Rails and railway track construction material, iron or steel .. Iron and steel wire (excluding wire rod) Tubes, pipes and fittings, iron or steel Iron and steel castings and forgings, unworked Nickel Aluminum Finished structural parts and structures, n. Metal containers for storage and transport Nails, screws, nuts, bolts, rivets and sin- steel or of copper Hand or machine tools Manufactures of metal, n.e.s Sanitary, plumbing, heating and lie.htim Furniture \av £ Clothing (except fur clothing) Footwear Scientific, medical, optical (photographic controlling instruments and apparatus .. Photographic and cinematographic supplie : film Printed matter Articles of plastic materials, n.e.; Toys, games, and sporting goods Office and stationery supplies, n.e Manufactured articles, n.e.s Miscellaneous commodities and trans 7,995 3,607 7,320 4,946 6,722 7,. 1,010 944 1,( 2,720 1,661 1, 1,081 1,127 1, 7,817 7,065 7,f 24,108 23,586 25, 2,968 9,611 3,707 3,197 ,472 7, ,,185 2, ,509 3, 5,426 6, ,285 1, ,347 14, 3,771 6, i Less than $500. Note: Data for 196.1 are not, strictly comparable with prior y Source: Basic data of the U.S. Department of Commerce, Bu of the Census. -^r itage of transportatio Coffee Shrimp Petroleum and produc Cattle Sulfur Beef, fresh, chilled an Zinc Copper 1 Excluding gold and silver. Source: Secretaria de Industria y Comercio, los Mexicanos, 1958-6-1 , Mexico, D.F., 1959-65. l General de Estadis 192.3 803.5 n,, Esttidistico del Comer 269.4 935.9 r de los Estados Table 14. — Imports by Commodity Sections, 1961-64 1 [Millions of dollars] Table 16. — Imports of Machinery, Tools, Electrical and Transport Material, Total and From the United States by Commodity Divisions, 1964 [Millions of dollars] Mineral fuels and lubricants s electric energy Fats and oils, except lubricar Chemicals Machinery, tools, electrical i transport material Other manufactured goods .... Miscellaneous commodities .. Total 1 Includes free zone imports. Source: Secretaria de Industria y Comercio, Direccion General de Estadistica, Avuario Estadistico del Comcreio Exteriro de los Estados Unidos Mexicanos, 1961-64, Mexico, D.F., 1962-65. J. 8 100. .9 35. .2 205. 3.3 622. { .0 175. r .0 l,239. r Machines and apparat Tools Electrical machines and material .... Spare parts and replacements for machines and apparatus Transport material Spare parts and replacements for Source: Secretaria de Industria y Comercio, Estadistica, Armaria Estadistieo del Coinerc dados Unidos Mexicanos 1964. Mexico, D.F., Table 15. — Total Imports and Imports frt Food products Beverages and tobacco Unmanufactured materials, except mineral fuels Mineral fuels, lubricants and electric energy Fats and oils, except lubricants Chemicals Machinery, machine tools, electrical and transport material . Other manufactured goods and r ..-i-ll.-m. 1 Excludes Puerto Rico which totaled $971,0 Source: Secretaria de Industria y Comercii Unidos Mexicanos, 1964, Mexico, D.F., 1965. , Eshulisiiro del Comer r de los Estados Table 17. — Imports of Chemicals, Total and From the United States, by Commodity Divisions, 1964 [Millions of dollars] Imports, Imports from Commodity division total United States Chemical elements and compounds 84.1 61.1 Tanning, dyeing and coloring materials.... 11.8 2.8 Narcotics and medicines (subject to special legislation or to specific classi- fication) for hygienic use 15.0 4.8 Drugs, medicines and pharmaceutical specialties in dosage form 12.1 6.7 Essential oils, perfumery, toilet prep- arations, soaps, and polishing or cleaning compounds 6.8 5.1 Fertilizers 17.4 11.1 Explosives 1.6 1.3 Miscellaneous materials and products 31.7 24.8 Mixtures, preparations and products of organic mineral or organo-metallic, not elsewhere specified 31.6 20.0 Total 212.1 137.6 Source: Secretaria de Industria y Comercio, Direccion General de Estadistica. Anuario Estadistiro del Comercio Exterior de los Estados Unidos Mexicanos, 1964, Mexico, D.F., 1965. Table 18. — Imports of Other Manufactured Goods, Total and From the United States, by Commodity Divisions, 1964 [Millions of "dollars] Imports, Imports from Commodity division total United States Leather, hides or skins 1.4 .1 Rubber, celluloid, casein, ebonite and other composition of synthetic resins, including plastics 4.1 3.1 Wood, cork, corozo, osier, rattan and similar products .". 3.1 2.0 Paper, cardboard and manufactures therof 37.0 19.3 Yarns, fabrics and articles of textile fibers and merchandise containing such goods 9.7 5.5 Nonmetallic mineral materials and Gold, silver, platinum and precious jewelry and trimmings 1.4 .8 Base metals 33.6 22.8 Manufactures of base metals 7.0 4.5 Clothing 5 .2 Clothing accessories .1 .1 Hats, helmets, caps and articles for manufacture thereof .1 .1 Footwear and articles for manufacture thereof 2 .1 Household linens and furnishings, other Travel goods and cases, handbags and similar articles (i) (i) Buildings, sanitary equipment and lamps for illuminating 1.3 1.1 Professional and scientific instruments, photographic and optical apparatus, clocks and watches 46.8 28.6 Miscellaneous 7.9 5.4 Total 159.7 96.9 1 Less than $50,000. Source: Secretaria de Industria y Comercio, Direccion General de Estadistica, Anuario Estadistiro del Comercio Exterior de los Estados Unidos Mexicanos, 1964, Mexico, D.F., 1965. Table 19.— Imports of Miscellaneous Commodities, Total and From the United States, by Commodity Divisions, 1964 [Millions of dollars] Imports, Imports from Commodity division total United States Articles of animal origin .6 .4 Articles of vegetable origin .3 .3 Articles of mineral origin 2 .2 Arms, ammunition and pyrotechnics 5.6 4.8 Art works and antiques 5 .2 Articles for prizes (*) (i) Collections and specimens .1 .1 Baggage, household furniture and mer- chandise samples .1 .1 Total 7.4 6.1 1 Less than $50,000. Source: Secretaria de Industria y Comercio, Direccion General de Estadistica, Anuario Estadistico del Comercio Exterior 1 de los Estados Unidos Mexicanos, 1964, Mexico, D.F., 1965. Table 20. — Imports of Unmanufactured Materials, Except Mineral Fuels, Total and From the United States, by Commodity Divisions, 1964 [Millions of dollars] Commodity division total Imports from United States Hides and skins, untanned 9.0 .5 24.9 4.1 11.2 27.2 . 17.3 30.5 5.4 . 129.9 8.7 Wood and cork Materials for the manufacture of paper, cardboard and artificial fibers 2.9 7.4 Crude minerals, except coal, petroleum Metallic minerals and metal waste Animal and vegetable products for in- dustrial use Total 4.3 84.5 de Industria y Comercio, Direccion General trio Estadistiro del Comercio Exterior de los icanos 1964, Mexico, D.F., 1965. Table 21. — Imports of Food Products, Total and From the United States, by Commodity Divisions, 1964 [Millions of dollars] Live animals, principally for food 6.9 Meat and meat preparations 2.1 Dairy products, eggs, and honey 7.9 Fish, crustaceans, shellfish and mol- lusks, live, fresh and canned 1.0 Cereals, grains, starches and flours 12.5 Fruits and vegetables 4.5 Sugar, syrups and preparations thereof .... .2 Cocoa, coffee, tea, spices and prepara- tions thereof 3.1 Other food preparations 10.8 Total 48.9 1 Less than $50,000. Source: Secretaria de Industria y Comercio, Direcc de Estadistica, Anuario Estadistico del Comercio Ext Estados Unidos Mexicanos, 1964, Mexico, D.F., 1965. Table 22. — Imports of Mineral Fuels and Lubricants and Eleetrie Energy, Total and From the United States, by Commodity Divisions, 1964 [Millions of dollars] Table 23. — Imports of Beverages and Tobaccc and From the United States, by Commodity Di 1964 [Millions of dollars] Commodity division Source: Secretaria de Industria y Comercio, Direccion General de Estadistica, Anuario Estadistico del Comercio Exterior de los Estados Unidos Mexicanos 1064, Mexico, D.F., 1965. Table 24. — Imports by Customs Ports, 1964 Commodi Customs port TU'\ . Salina Cruz, Oax San Jose del Cobo, B.C., T.S. . San Luis Rio Colorado, Son. ... Santa Rosalia, B.C., T.S Sonoyta, Son Tampico, Tamps Tecate, B.C Torr , Coah. . , Ver. ... z, Ver. . 1 Including free zones and Source: Mexican Ministry Office, Mexico, D.F. Metric Aeapulco, Gro 39,003 Ajrua Prieta, Son 5,037 Campeehe, Camp 3,214 Ciudad Acuna, Coah 5,466 Ciudad del Carmen, Camp 62 Ciudad Hidalgo, Chis 252 Ciudad Juarez, Chih 389,863 Ciudad Mipruel Aleman, Tamps 46,541 Coatzacoalcos, Ver 181,791 Comitan, Chis 5 Cozumel, Q.R 277 Chetumal, Q.R 3,262 Ensenada, B.C 157,381 Frontera, Tab 704 Guadalajara, Jal 3,068 Guaymas, Son 153,058 La Paz, B.C., T.S 4,150 Los Algodones, B.C 2,619 Manzanillo, Col 56,963 Matamoros, Tamps 210,726 Mazatlan, Sin 58,540 Mexicali, B.C 314,124 Mexico, D.F Naco, Son Nogales, Son Nuevo Laredo, Tamps Ojinaga, Chih Palomas, Chih Piedras Negras, Coah. Postal d< )3,722 11,965 Thousands of dollai of Industry and Commerc CITY HALL: City employees in Piedras Niegras, Co; luiila State, have their official station here in the oil ball, the Prcsidencia Municipal. Alcoholic beverages 2.9 Non-alcoholic beverages (') Tobacco 6.2 Total 9.1 1 Less than $50,000. Source: Secretaria de Industria y Comercio, de Estadistica. .liiimriii Estadistico del Comercii Estados Unidos Mexicanos, 1964, Mexico, D.F., State or terri Trucks Motorcycles Total Aguascalientes 4,606 Baja California, N. 47,976 Baja California, S. 1 2,469 Campeehe 1,911 Coahuila 16,316 Colima 1,397 Chiapas 4,313 Chihuahua 26,892 Distrito Federal ...... 246,094 Durango 5,021 Guanajuato 11,805 Guerrero 4,431 Hidalgo 4,808 Mexico 34,300 Michoacan 9,525 Morelos 6,563 Nayarit 1,936 Nuevo Leon 40,975 Oaxaca 3,658 Puebla 15,601 Queretaro 1,775 Quintana Roo> 461 San Luis Potosi 7,714 Sinaloa 2,565 Sonora 22,742 Tabasco 1,719 Tamaulipas 18,371 TIaxcala 1,991 Veracruz 16,173 Yucatan 7,694 3,415 374 8,731 26,646 2,001 3,787 79,193 4,500 4,951 25,813 46,593 2,348 2,408 1,145 820 18,484 648 20,136 9,574 11,707 61,086 16,546 32,49: 45,179 Total 617, 960 27,573 352,681 43,288 ,041,502 1 Te Sou) Mexicc ce: Minis , D.F. ry of I ndust •y and Commerce, Statistica Office, Stat Airuiiscalientes Biija Colifornia, N. .. Baja California. S.> .. Campeche Coahuila Colima Chiapas Chihuahua Dist.ito Federal Durango Guerrero Hidalgo Jalisco Mexico Michoacan Morolos Nuevo Leon Oaxaca Puebla Queretaro Quintana Roo 1 San Luis Potosi Sinaloa Tabasco Tamaulipas Veracruz Yucatan Zac atiras Total 26.6.S2 4,768 6,39!) 23,536 1,449 3,340 SUMMER NOONTIME: Coatzacoalcos, Vera Cruz State, is located on the Coatzacoalcos River 1 mile from its mouth on the Bay of Campeche in the Gulf of Mexico. A highway, railway, and ocean port serve the city. selling in Israel ness is good help distributors with catalogues promote when busi- attitude research a hard experi- look at marketing costs mentation in marketing world trade in wool and wool textiles promoting professional sales- manship crediting according to turnover cases in marketing management Let Marketing Information Guide preview your marketing reading You'd need a 9-day week to even begin to keep up with the publishers' flood of books and periodicals for businessmen. But for marketing information, at least, you don't need to be a speed-reading marvel to stay ahead. The Marketing Information Guide screens and anno- tates material of paramount interest to Marketers. It is published monthly by the Business and Defense Services Administration of the U.S. Department of Commerce. Subscribe today - $2 a year Subscription Form Please enter my subscription to MARKETING INFORMATION GUIDE □ Annual subscription, $2. □ Foreign mailing, 75 cents additional NAME CITY CT4TF Mail to Super Office, Washi payable to tr ntendent of Documents, U.S. Government Printing gton, D. C. 20402. Enclose check or money order e Superintendent of Documents. ANSWERS Your basic questions on export licensing requirements □ How to obtain an export license □ How to clear shipments through customs. □ What commodities require export licenses □ What policies are followed in considering applications □ What restrictions are placed on exports to certain countries □ Under what circumstances an export license is unnecessary . . . and many other official an- swers COMPREHENSIVE EXPORT SCHEDULE A compilation of official regulations and policies governing the export licensing of commodities and technical data. U.S. DEPARTMENT OF COMMERCE BUREAU OF INTERNATIONAL COMMERCE /Office of Export Control *^rcs o« + ORDER BLANK To: Superintendent of Documents Government Printing Office Washington, D.C. 20402 I wish to subscribe for set(s) of the Comprehensive Export Schedule and supplementary Current Export Bulletins. Enclosed is □ check Q money order (cash) for $ or charge my deposit account Subscription Rates In the United State Street address City, state, zip code ,__ Make check or money order i y Regular Mail By Airma $7.00 $11.00 (only B > Superintendent of Documents VYiVW v PENN STATE UNIVERSITY LIBRARIES AQDDD?lEfifl7fl c l 2?erica Many PUBLICATIONS on export and world trade are available at the U.S. Government Printing Office For use of Supt. Docs. ORDER FORM To: Superintendent of Documents, Government Printing Office, Washington, D.C. 20402 Any U.S. Department of Commerce Field Office Please send me the market studies checked. Enclosed find $ (check or money order). Name Address City, State, & Zip Code □ AFRICA: Sales Frontier for U.S. Business. 1963. 121 pp. $1. □ BELGIUM. A Market for U.S. Products. 1963. 60 pp. 45*. □ TRADE and INVEST in CENTRAL AMERICA. 1965. 60*. □ EAST AFRICA, Market for U.S. Products. 1966. 16 pp. □ HONG KONG, A Market for U.S. Products. 1964. 122 pp. $1. □ IRAN. 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