BUSINESS SECTION

 

MEXICO CITY (AP) – August 2, 2005 - Mexico announced a series of measures Tuesday for bolstering the economy and making the country more competitive, mainly by cutting down on paperwork.

Speaking at an event in the capita's historic city center, President Vicente Fox said the plan will be executed through 2006, when he is due to step down.

"Certainly this government has not finished ... there is much, but much, to be done in economic terms," he said.

The measures target improvements in trade, health, finances, transport, telecommunications, electricity, oil, migration and local government red tape.

Fox took office in 2000 with an ambitious agenda for reforms aimed at spurring strong economic growth in Mexico, but his initiatives have been unable to rally much support in Congress.

Legislators passed a handful of new tax rules in 2002, but the controversial package failed to significantly boost tax collection or greatly simplify the country's tax code.

With just over a year left in his term, and no chance for re-election under Mexican law, Fox is expected to leave office having accomplished few of his economic goals.

Monday's growth plan does not require Congressional approval and the Fox administration worked with several private-sector think tanks and business groups to outline it.

Because of paperwork, for example, even the simplest of businesses often take 54 days to open after slogging through of local regulations, said Carlos Garcia, head of the federal regulatory improvement board.

"This translates into numerous visits to little windows -- into a peregrination and a real cross to bear for the citizen," Garcia said.

Since 2002, Garcia said, the government has coordinated with municipal and state authorities to set up 63 offices that help simple businesses like taco stands get up and running in less than 72 hours.

The Fox plan also aims to reduce costs for businesses while speeding up transactions through better logistics and communications.

Mexican companies are unable to make the most of the country's extensive free trade agreements, Garcia said, because bureaucracy often makes it difficult to get goods out of the country.

Under the proposed changes, customs permits that currently have to be picked up in person can be filled out via Internet, freeing up time for 66,000 companies.

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