GREATER AUSTIN HISPANIC CHAMBER OR COMMERCE SEMINAR REGARDING ECONOMIC IMPACT/COMMUNITY INVOLVEMENT US-MEXICO BUSINESS OPPORTUNITIES Date: August 6, 2009 Sue Snyder Jackson Walker L.L.P

Texas – Mexico Tremendous Business Partners Texas is the #1 Largest Exporting State in the US (even greater than California – which has more than 30% more people) More than $192 B in 2008 Texas’ Number 1 Destination – Mexico $62 B (total US of $151 B) 10% increase over 2007

Imports Staggering as well Mexico into US -- $ 216 B imports –Ranks 3 rd Mexico into Texas -- >> $ 70 B imports

Totals US/Mexico: 2008 total Mexico trade value = $ 367 B 2008 Trade surplus Mexico = $ 64 B Texas/Mexico: 2008 total Mexico trade value = $ 132 B 2008 Trade surplus Mexico >> $ 10 B

What Does All this Mean? Huge Growth Market is overseas Business must be more innovative and Sell More Overseas to Grow Education/Skill/Funding will be more international Free trade is becoming even more crucial to business Trade matters will be a MAJOR part of our future

What is Surprising? Statistics Show: Not all large companies: In the US, about 97 percent of exporters are small or medium-sized companies, which create three out of four new jobs. Not just the Big Items: For instance Computers and Electronics Accounted for 25% of US Exports in Texas in 2006

What do we do? Jackson Walker is one of Texas’ oldest law firms (founded in 1887) Has 300+ attorneys 6 th Largest firm in Texas (Texas Lawyer) 4 th Largest firm in Austin (ABJ) Go-To Law Firm 200 (Corporate Counsel) International Section

Realm of International Law A company will leave the confines of the domestic law when any of the following cross national borders: –Products –People/Services –Currency –Technology

International Issues Should be Consulted when any of the following cross national borders: People Currency Products Services Technology Knowledge Protection Competition

Typical Legal Matters in Counseling on Doing Business Overseas Matters may include: –Buying/Selling Products –Buy/Selling Services –Buying Selling Companies/Land/ Assets –Financial Matters –Licensing –IP Protection –Setting up Offices – Sales, etc. –Ex-pats/Off-shoring –Changing Laws –Challenging actions/laws/country behavior

Constantly Changing Expect More Trade Agreements –Other Countries Expect New EAA –Needed Drastically Expect Immigration Legislation –Hotly Debated issue In Congress Expect Continued Increased Enforcement –Customs/FCPA/Exports/Immigration

JW’s Recent Work Arcie Jordan – Partner with extensive work in the US-Mexico international arena...

Recent transactions 1. Assisting distributor of medical devices to understand: –* Applicable U.S. export licensing requirements –* Mexican importation requirements –* How to protect itself in Mexico in order to be able to either recover medical devices or its damages, in the event of breach by Mexican customer 2. Assisting numerous carriers and logistics companies with foreign investment issues, tax compliance, labor negotiations, and corporate formation & maintenance in Mexico. 3. Assisting Mexican investors create U.S. corporate vehicles and understand: –* U.S. foreign investment restrictions and reporting obligations –* U.S. tax issues under U.S.-Mexico Tax Treaty 4. Assisting U.S. companies understand and comply with Mexican immigration issues. 5. Assisting Mexican companies understand and comply with U.S. and Canadian immigration requirements. 6. Assisting U.S. company to form joint venture with several Mexican companies for cross- border operation. 7. Assisting U.S. companies understand and comply with Mexican transfer pricing regulations for interrelated party transactions

In Summary Trade Matters: Exports accounted for about 25 percent of U.S. economic growth in the 1990s. In the future, participation in the global economy will be even more critical to economic growth. The increased demand expands the economy and creates jobs.