CICOPA

Mexico: new cooperative law will be used to promote cooperative work

Although this model is far from being a marginal economy, there are no precise figures for the number and influence of cooperatives in Mexico. There is a lack of recognition and promotion required for this sector’s development. A new Cooperative Societies Act aims to find solutions to the obstacles this movement is facing.

28 June 2011

Natalia Acerenza for CICOPA

In the production cooperatives sector in Mexico we find a number of illustrative and very strong companies such as Pascual, Cruz Azul, El Grullo (Jalisco) and Trado. They show that it is possible to reach high levels of economic success. However, there are still a large number of small cooperatives not organized or not affiliated to any second level organizations that could represent them.

“One of the objectives of our confederation is to achieve the integration of this large number of production cooperatives - present throughout the country- into a broader representative framework”, pointed out the director of the Mexican cooperative confederation for all the sectors (CMC), Dov Orian.

The current law governing cooperatives dates from 1994 and presents some gaps that have created barriers in its implementation. Moreover, this law is more oriented to the control and management of cooperatives than to their development and promotion. “Regarding production cooperatives, they often find difficulties in size and access to credits; therefore it is hard for them to live up to today’s modern technological development”, states Orian. These are some of the aspects that the proposed new Cooperative Societies Act seeks to correct in Mexico, and that were launched last week at the Chamber of Deputies by the Senior Council of Cooperatives (COSUCOOP).
One of the points which the new Cooperative Societies Act desires to highlight is the fact that the government should be involved in supporting, encouraging and promoting the cooperative concept within the movement as well as outside.

Another challenge this sector is facing constitutes the sector’s fragmentation and the lack of statistical information reporting on its real size. “Since Mexico is a large country, with significant geographic distances, we often do not even know of the existence of some cooperatives”, stated the Headquarters Chair of the Mexican Confederation. The new law envisages that Mexico´s National Institute of Geography and Statistics incorporates the cooperative title in the resident registration in order to overcome this problem.

International Organisation of Industrial, Artisanal and
Service Producers' Cooperatives

Secretariat: C/O European Cooperative House - avenue Milcamps 105
1030 Brussels, Belgium
Tel: +32 2 543 1033, fax: +32 2 543 1037
E-mail: cicopa[at]cicopa.coop

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