MEXICO "WILL BE COMPETITIVE UNDER NAFTA"

Mexican-produced drugs will experience no difficulty in the US market when the North American Free Trade Agreement takes effect, according to Francisco Mondinger of Bayer-Mexico.

However, he warned that the biggest competition problem for Mexican manufacturers will be in the domestic market, because the leading multinational companies have established such a solid distribution base in Mexico. In order to compete, the entire Mexican pharmaceutical sector will have to modernize and expand its facilities, he said, but he added that the potential for export is there.

Mr Mondinger also said that Bayer has initiated an ambitious program of modernization of its six installations in Mexico, and that this program will be financed by spending totaling 48 billion pesos ($15 million) over the next two years.