SUBSIDIES

REPLIES TO QUESTIONS POSED BY THE UNITED STATES[1]
REGARDING THE NEW AND FULL NOTIFICATION OF MEXICO[2]

The following communication, dated and received on 5 December 2022, is being circulated at the request of the delegation of Mexico.

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Question 3 ‑ Pertaining to the Industrial Productivity and Competitiveness Program and the Sectoral Promotion Programmes (PROSEC)

Please explain what sectors and industries have benefited from these programs during the reporting period.

Reply

The industries benefiting from this programme can be found at: https://www.snice.gob.mx/cs/avi/snice/progfom.prosec.acercade.html

Question 4 ‑ Pertaining To USMCA Foreign Trade Product (Bancomext) program

A.    The notification states that the objective of this program is "To increase access to financing for exporting companies and those linked to value chains in strategic sectors with export potential...". Please explain how this program works and how funds are channelled to exporters?

Reply

The USMCA Foreign Trade Product program operates within the framework of the guarantees program. Guarantees are a financial instrument through which Bancomext shares the risk for loans granted by financial intermediaries underwritten by Bancomext, with respect to those loans granted to companies engaged in foreign trade to mitigate the loss resulting from portfolio non‑payment defaults.

Bancomext covers guarantees granted to beneficiaries of various programmes through counter‑guarantee funds.

The program is implemented in coordination with a network of chosen financial intermediaries, so that they in turn can provide financing to companies. More details can be found at: https://www.bancomext.com/pymex/productos/comercio‑exterior‑tmec/

B.    Please explain what sectors and industries have benefited from this program during the reporting period.

Reply

During 2020, the commercial sector received 50% of the total allocated amount, followed by the industrial sector (38%) and services (12%).

C.    What proportion of funding is provided to exporting companies as opposed to tourism companies?

Reply

Tourism companies are not covered by this program.

Question 5 ‑ Pertaining to the tax incentive for technology research and development program

Please explain what sectors and industries have benefited from this program during the reporting period.

Reply

The companies that have benefited are not classified by industrial sector; however, more detailed information can be found at: https://conacyt.mx/conacyt/areas‑del‑conacyt/uasr/desarrollo‑regional/fondos/estimulo‑fiscal‑a‑la‑investigacion‑y‑desarrollo‑de‑tecnologia‑efidt/