Fox Aims for Fiscal Reform.(Mexican market outlook)(Industry Overview)

Chemical Week, June, 2001 by SISSELL, KARA

But U.S. Economy Stalls Progress

MEXICO'S CHEMICALS SECTOR HAS begun to feel the effect of the U.S. economic slowdown, as decreased demand for consumer products slows production at border manufacturing plants and a strong peso pinches profits for exporters. The Mexican government has revised its 2001 GDP growth estimates to about 3%, down from the 5% the government had predicted last year and less than half the 7% GDP growth recorded in 2000.

Mexican chemical producers say sluggish U.S. demand and a strong peso have caused low-cost imports to flood the Mexican market. "The peso is the only currency in the world that has appreciated against the U.S. dollar, and some companies are not hesitating to dump some of their product in Mexico," says BASF Mexico...

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