October 27, 1993
TO: BOARD OF GOVERNORS NO. 98-93
FEDERAL LEGISLATION COMMITTEE NO. 34-93
INTERNATIONAL COMMITTEE NO. 22-93
MEMBERS - ONE PER COMPLEX NO. 72-93
REGIONAL WORKING GROUPS
RE: CONGRESS TO CONSIDER NAFTA; INSTITUTE ACTIVE IN SUPPORT
__________________________________________________________
This fall, the Congress will be voting to approve the North American Free
Trade Agreement (NAFTA). Though NAFTA is strongly supported by the President,
the outcome of the vote is by no means certain.
The Institute is urging Congress to approve NAFTA because it will provide
the U.S. financial services industry with significant new access to the Mexican
market, access that today is virtually denied. Under NAFTA, U.S. firms will for
the first time be able to establish wholly-owned Mexican mutual fund operating
companies.
In support of this effort, I am asking that you write the Member(s) of
Congress and Senator(s) whose names appear on the attached list and communicate,
in your own words, the reasons you urge approval of NAFTA. These reasons might
include the following:
The U.S. services section is one of the most dynamic in the U.S.
economy, posting a trade surplus of $59 billion in 1992.
Mexico has been one of the most restrictive markets for U.S.
financial services firms, which are generally prohibited from
establishing and providing services in Mexico.
NAFTA would for the first time allow U.S. firms to establish wholly-
owned Mexican mutual fund operating companies.
-2-
Expansion into the Mexican market means additional jobs in the U.S.
as well.
It would be helpful to include in your letter that your firm is
headquartered or has a presence in the Member’s state (see attached "State
Profile"). For your additional guidance, we are attaching a letter to Members
of Congress from a group of Massachusetts’ mutual fund complexes as a model.
Please send Julie Domenick, Senior Vice President, Legislative Affairs,
blind copies of your correspondence and advise her of any response to your
communication.
Should you wish to discuss this further or require additional information,
please call me (202/955-3510) or Julie (202/955-3544).
We very much appreciate your assistance in connection with this important
endeavor.
Matthew P. Fink
President
Attachments