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Energy
Pemex’s PMI To Cut Oil Exports To U.S.
April 28, 2008
Pemex’s international division PMI Comercio Internacional said it has notified the U.S. Department of Energy (DOE) of a reduction in Mexican crude oil exports to the U.S. by an average of 184,000 barrels per day during 2008. PMI also said that this cut could be extended for two more years, since a drop in crude oil production has forced the company to adjust exports of the hydrocarbon.
Pemex Reaches Net Profit Of USD 315.8 Million In 1Q 2008
April 29, 2008
Pemex reached a net profit of USD 315.8 million during 1Q 2008. The earnings compare to a net loss of USD 995.2 million for the same 2007 period. Total sales were up 32.4% during the quarter to USD 30.7 billion and consolidated debt for the period was down 15.3% or USD 8.7 billion.
Pemex Plans June Work On Cadereyta Vacuum Distillation Unit
April 28, 2008
Pemex has announced a tender for 18 days of maintenance work and modifications at a vacuum distillation unit at its Cadereyta refinery, in the state of Nuevo Leon, starting on June 2. Cadereyta has a maximum capacity to process 270,000 barrels a day, but normally operates below capacity. The Energy Ministry (SENER) said Pemex lags behind international standards for maintenance and operating efficiency at its refining network, with maintenance and expansion projects suffering from chronic delays. Pemex hasn’t built a new refinery since 1979.
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Mining
Economy Ministry Sees Growing Investment In Mining
April 29, 2008
The Economy Ministry (SE) said that the mining sector is likely to receive USD 20 billion in investment during the 2007-2012 period, bolstered by rapid growth in metals demand from large emerging economies such as China and India. Investment in the sector is expected to be o USD 3.32 billion this year, up 54% from 2007. SE said that the estimate for total investment over the next six years is based on projects that have already begun as well as numerous new exploration projects. Mexico’s mining industry is unlikely to be impacted by the U.S. economic slowdown because the U.S. is neither the most important source of demand nor investment in the sector.
GMex To Offer Cananea Miners USD 60 Million Severance Deal; Strike Legal
April 29, 2008
Mexican miner Grupo Mexico (GMex) said it plans to offer a USD 60 million severance package to striking workers at its Cananea mine, in the state of Sonora. The Cananea mine has been shut down completely since April 11 as workers have been on strike for the greater part of the last nine months. The 1,300 workers will be offered the package, which amounts to some USD 46,000 per worker. In its first-quarter earnings report, GMex said production at Cananea will be resumed “once there is labor stability and legal certainty.” However, after announcing the planned severance package, GMex was notified that the strike at the mine was legal and the company’s CFO said he sees no end in sight for the strike.
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Business & Industry
Grupo Pisa Invests USD 50 Million In New Plant
April 28, 2008
Mexican pharmaceutical company Productos Infantiles (PISA) said it will invest USD 50 million to build a new plant that will manufacture products to treat renal insufficiency. The facility will be located at the Tlajomulco de Zuñiga municipality, in the state of Jalisco. PISA produces 900 different medicines to treat several diseases and has been present in the Mexican market for 63 years.
Vitro Considers Legal Action Over Possible Hostile Takeover Attempt
April 29, 2008
Mexican glassmaker Vitro will consider pursuing legal remedies against Mexican businessman Roberto Hernandez regarding a possible hostile takeover attempt. Hernandez, the former owner of Mexican financial services group Accival-Banamex, through his representatives disclosed possibly unregistered shareholdings during a Vitro board of directors’ meeting. The disclosure had not been previously announced, although it cited some sources as saying that the stakes had already been disclosed. Vitro denies that there had been a previous disclosure. Speculation suggests that Hernandez could carry out takeover transactions regarding other Mexican companies in which he already has ownership.
WTO Rules Against U.S. Antidumping Measures Over Mexican Stainless Steel
May 1, 2008
The Economy Ministry (SE) announced that the World Trade Organization’s (WTO’s) appeals panel ruled in favor of Mexico over the U.S. antidumping tariffs on Mexican stainless steel. As a result, the U.S. will have to recalculate its antidumping tariffs and modify its legislation in order to align it with its duties within the organization. Mexico said it will look forward to ensuring that the U.S. complies with the WTO’s ruling and that the latter is an important victory in the defense of the commercial interests of Mexican producers.
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Automotive
AMDA: SAT Refuses To Control U.S., Canadian Car Imports
April 30, 2008
The Mexican Association of Auto Distributors (AMDA) said that the Federal Tax Authority (SAT) is refusing to control the entry of automobiles coming from Canada and the U.S. and is simplifying import procedures in order to avoid jams at border crossing points. AMDA said that SAT is the only government entity that has not backed the demand for regulation of the entrance of vehicles from the U.S. and Canada. AMDA said that while the Mexican auto industry is working with the Economy and Environment Ministries, SAT is simply opening the border to the said automobiles.
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Housing & Mortgaging
Infonavit On Track To Make Over 500,000 Mortgages In 2008
April 28, 2008
Government-run housing fund Infonavit said it is on track to make over 500,000 mortgages – mainly to low-income wage earners – this year. Infonavit – which is funded by its lending operations, mandatory employer contributions on behalf of about 13 million salaried workers, and mortgage-backed securities – has budgeted 500,000 to 540,000 mortgages for 2008. Mexico’s mortgage industry continues to expand after more than five years of strong growth, thanks to a housing deficit of more than 5 million units, ready access to financing through Infonavit and private lenders, and a stable economy.
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Transportation
CANACAR Demands USD 2.5 Billion – USD 6 Billion Payment From The U.S.
April 30, 2008
CANACAR, the private organization representing the majority of Mexico’s freight haulers, is demanding to be paid between USD 2.5 billion and USD 6 billion by the U.S. government for allegedly failing to meet the North American Free Trade Agreement’s (NAFTA’s) transportation dispositions. CANACAR said that it has begun legal action against the Bush administration for violating NAFTA, but international laws only allow claims over nonfulfillment over the immediate three previous years. So far, the U.S. hasn’t made an official statement regarding the issue. CANACAR represents over 4,500 transportation firms.
Mexico, U.S. Agree To Build Border Railroad
April 30, 2008
Mexico and the U.S. have agreed on building a new railroad across the border that could run from Nuevo Laredo or Colombia, in the states of Tamaulipas and Nuevo Leon, respectively, to Laredo, Texas, on the U.S. side. The agreement was reached as part of the works of the Security and Prosperity Partnership of North America (SPP). In addition, three new fast lanes were approved on the Mexican customs of Nuevo Laredo, Tijuana and Nogales, which are used exclusively by companies that have been certified for their safety standards.
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Telecommunications & Technology
Ecuador Will Renew America Movil Deal
May 6, 2008
Ecuadorian President Rafael Correa agreed to renew the operating concession for Porta, the Ecuadorian subsidiary of Mexican mobile phone giant America Movil, ending months of stalled negotiations and reversing an earlier threat to cancel it. Porta is willing to meet the USD 480 million price sought by Ecuador’s government to continue operating in the country for 15 years. The decision came after Correa met with America Movil CEO Daniel Hajj Aboumrad. Ecuador’s National Telecommunications Commission must still approve the decision. The commission had called off talks with Porta on April 30, saying its offer of USD 307 million was too low and had decided to end the contract with America Movil.
CFC Expands Wireless Market Probe
April 30, 2008
The Federal Competition Commission (CFC) has widened its probe of the mobile telephony industry, which is largely in the hands of America Movil, a company owned by billionaire Carlos Slim. In a statement published in the federal official gazette (DOF), the CFC said it has launched an investigation into the “possible existence of substantial power” in the sector, without naming a specific company. The investigation is the CFC’s seventh probe of Mexico’s telecommunications industry since last November. America Movil’s Telcel unit has about three quarters of the country’s mobile subscribers, reporting 51.5 million clients at the end of March. Telmex, also owned by Slim, controls about 90% of fixed lines with 17.8 million lines. The CFC said it plans to complete its latest investigation in 15 to 45 days.
Megacable Plans Big Triple-Play Expansion In 2008
April 29, 2008
Mexican cable TV company Megacable Holdings expects to be able to offer triple-play services to more than 90% of the homes covered by its network this year. About 85% of Megacable’s network was capable of offering triple-play at the end of March: it had a presence in 180 communities in 23 states with 1.35 million pay-TV users, 398,684 Internet subscribers, and 136,365 phone subscribers. Megacable has emerged as Mexico’s leading cable TV firm after a string of acquisitions, including Acotel and Telecable Centro Occidente last year.
Cablemas Negotiating Mobile Telephone Service With Telefonica, Iusacell, Nextel
April 29, 2008
Mexican cable TV company Cablemas is negotiating with mobile telephony providers Telefonica, Iusacell and Nextel to offer mobile telephone service by the end of this year. The mobile telephone services would be offered to customers as part of a larger package of services that would also feature cable television, Internet and fixed-lined telephony. Cablemas is already providing this type of service in Tijuana, in the state of Baja California, via an alliance with Axtel; and in Cuernavaca, in the state of Morelos, via an alliance with Bestel.
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Media & Entertainment
Televisa, Partner Univision Push Back Trial
April 28, 2008
Mexican broadcaster Televisa and partner Univision have pushed back a trial over Televisa’s aim to pull out of a programming deal, which could mean that an out-of-court settlement may be in the works. The two companies were set to face off in a U.S. District Court in Los Angeles, California, after three years of legal battles that have curbed Televisa’s expansion in the booming U.S. Hispanic market. But the trial was pushed back at the last minute at the request of both sides. The trial date is now July 1. Televisa and Univision did not comment on the delay. The case dates back to 2005 when Televisa filed a lawsuit demanding royalty payments it said Univision had withheld as part of the programming deal that expires in 2017.
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Economy
Mexican Remittances Have Dropped Dramatically This Year
April 30, 2008
The Central Bank (Banxico) said that Mexican remittances have fallen 2.9% this year due to the U.S. economic downturn. Mexicans living abroad sent home USD 5.3 billion from January to March compared to USD 5.5 billion during the first three months of 2007. Remittances are Mexico’s second-largest source of foreign income after oil exports. Banxico said it expects little or no growth in remittances by year’s end. In addition to the slowing U.S. economy, migration experts blame the drop on the U.S. crackdown on illegal immigration. In 2007, remittances rose 1% to a record USD 23.98 billion compared to a 15.1% jump in 2006, when they reached a record USD 23.05 billion.
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Border & Migration
U.S. Hispanic Population Surpasses 45 Million
May 1, 2008
National and state estimates by race, Hispanic origin, sex and age released by the U.S. Census Bureau show that the U.S. Hispanic population increased 1.4 million to reach 45.5 million on July 1, 2007, or 15.1% of the estimated total U.S. population of 301.6 million. The estimates also show that Hispanic population exceeded 500,000 in 16 states. Hispanics remained the largest minority group, with blacks (single race or multiracial) second at 40.7 million in 2007. With a 3.3% increase between July 1, 2006, and July 1, 2007, Hispanics were the fastest-growing minority group in the United States.
Congress Approves Bill To End Criminal Penalties For Undocumented Migrants
April 29, 2008
Congress voted unanimously to remove criminal penalties for undocumented migrants. Some officials acknowledge that harsh immigration laws have weakened Mexico’s argument for better treatment of its own migrants in the United States. The measure was passed unanimously by the Lower House just one day after it was passed the same way by the Senate. Current law establishes punishments of one and a half to six years in prison, but such penalties are seldom applied. Undocumented migrants are simply deported. The proposed new law would make undocumented immigration a minor offense punishable by fines of about USD 475 to USD 2,400. Most of Mexico’s undocumented migrants are from Central America.
Union And States Try Recruiting Farm Workers From Mexico
April 29, 2008
The U.S. United Farm Workers (UFW) hopes to recruit Mexican laborers to pick crops on U.S. farms. The union’s efforts to import temporary workers under an existing government program follow similar moves by lawmakers in Arizona and Colorado, who are also trying to create new pathways to bring in foreign field hands without approval from Washington. UFW’s president signed an agreement with the governor of the Mexican state of Michoacan to help recruit local residents to apply for temporary jobs on U.S. farms, all of which would be covered under union contracts.
Thousands Rally In May Day Effort For Immigration Reform
May 1, 2008
Thousands of chanting, flag-waving activists rallied in cities across the United States attempting to reinvigorate calls for immigration reform in a presidential election year in which the economy has taken center stage. From Washington to Miami to Los Angeles, activists demanded citizenship opportunities for the estimated 12 million illegal immigrants in the United States and an end to raids and deportations. Activists say this year’s efforts are focused less on protests and more on voter registration and setting an agenda for the next president. Some said participation likely was lower because many immigrants increasingly fear deportation.
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Politics
EPR Proposes Cease-Fire With Government
April 29, 2008
Leftist rebel group People’s Revolutionary Army (EPR), who claimed responsibility for pipeline blasts last year, has proposed a cease-fire with the government, if the government stops pursuing them. EPR claimed responsibility for blasts at more than a half-dozen oil and natural gas ducts in 2007 to demand the release of two of its members allegedly being held by the government. The government has denied holding the two men and said that it will accept talks with EPR as long as the group refrains from any new attacks. The Interior Ministry (SEGOB) said it is ready to hold talks with the EPR but would not agree to halt investigations or prosecution of rebels.
Congress’s Regular Session Ends
May 1, 2008
In a traditional flurry of activity on the last day of Congress’s regular session, the Lower House approved measures guaranteeing that women be eligible for all ranks in Mexico’s army. The house also approved a bill that would do away with the president’s traditional September 1 state-of-the-nation speech to Congress, instead requiring the president to submit an annual written report on the affairs of state.
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Justice, Safety & Crime
U.S. Defense Secretary Visits Mexico, Seeking To Strengthen Ties
April 30, 2008
U.S. Secretary of Defense Robert Gates met with Mexican leaders in Mexico City (DF) about a U.S.-Mexico initiative to counter drug cartels. U.S. President George Bush proposed the so-called Merida Initiative that would pump USD 1.4 billion into Mexico over several years to combat drug cartels and other criminal organizations. Gates said after his meetings that it would be a real slap at Mexico if the funding weren’t approved by Congress. The State Department would handle the bulk of the U.S. duties under the initiative, although the Pentagon would be involved in activities such as lending military equipment and the necessary training, as well as sharing of intelligence. Gates stressed that the initiative’s direction would be driven by the Mexican government. Gates also honored military service in Mexico City, commemorating Mexican World War II veterans who served in the Philippines. Gates’ visit was the second ever by a U.S. defense chief, and the first since a groundbreaking visit 12 years ago by former U.S. defense secretary William Perry.
U.S. Official Urges Congress To Help Mexico Fight Drug Trafficking
April 29, 2008
U.S. Attorney General Michael Mukasey urged the U.S. Congress to approve more than USD 500 million to help fight crime in Mexico and Central America. Mukasey called drugs, gangs and other violent crime located south of the U.S. border “a joint problem, and we must face it jointly.” The Bush administration has asked Congress to send USD 500 million to Mexico, and an additional USD 50 million to Central America countries as part of a crime-fighting program known as the Merida Initiative. The multiyear program would ultimately cost USD 1.4 billion and focuses mostly on combating drug trafficking.
Mexicans Take Control Of U.S. “Meth” Market
April 30, 2008
According to a U.S. Department of Justice (DOJ) report, a crackdown on domestic (U.S.) methamphetamine labs has created opportunities for Mexican drug cartels and their “superlabs” to fill the void. Law enforcement agencies now consider “meth” produced in Mexico to be the greatest drug menace in the Western United States and a growing concern across the southeast and mid-Atlantic states. Mexican drug gangs now produce 80% of the methamphetamine consumed in the United States, and Mexican officials say the Mexican manufacturers have become adept at meeting the shifting demands of U.S. addicts. The United States also believes that South American cocaine traffickers are diverting shipments away from the United States Europe.
President Calderon Deploys More Than 3,000 Soldiers, Police To Tijuana
April 30, 2008
President Calderon increased the pressure on violent drug gang, deploying more than 3,000 soldiers and federal police to the border city of Tijuana, in the state of Baja California, after 17 gunmen were killed in a street battle between rival cartels last week.
Soldiers held Tijuana’s main hospital in a virtual lockdown as doctors treated eight drug traffickers wounded in the above-mentioned shootouts. The hospital is now more or less back to normal after suspending all but emergency services to treat the traffickers. Officials limited access to the hospital in order to prevent cartel gunmen from shooting their way in to rescue their wounded colleagues, or finish them off.
Police, Soldiers Arrest 12 Gunmen After Shootout In Northern Mexico
May 1, 2008
Twelve men have been detained and two bodies found following a shootout between hit men and police in the northern state of Sinaloa, an area plagued by drug violence. The Public Safety Ministry (SSPF) said the men had been held up in a home in the state capital of Culiacan with 18 guns, hand grenades and bulletproof vests. Acting on complaints, federal police went to check out the house but were repelled by gunfire from inside the dwelling. Soldiers were called in and a 45-minute firefight ensued.
Pemex: Armed Robbers Make Off With USD 480,000 From Headquarters
April 28, 2008
A group of armed robbers stole about USD 480,000 from the headquarters of Pemex. About seven assailants entered Pemex’s administrative offices, where they attacked security officers guarding an armored truck. One of the two guards was beaten, but there were no bullet wounds. Pemex said the robbers escaped with their loot in a green Ford Escort.
Murdered Japanese Businessman In Mexico Identified
April 29, 2008
A Japanese man found dead in Ensenada, in the state of Baja California, was identified as Hiroshi Kato, the 48-year-old vice president of an overseas affiliate of Tokyo-based Explorer Corp. Kato worked in Mexico for about six years, overseeing the export of bluefin tuna to Japan. He was found fatally shot in a car near his office in Ensenada.
Legislators Vote To Remove Adultery From Criminal Code
May 1, 2008
The Lower House of Congress voted to remove adultery from the country’s criminal code, noting that no one has been prosecuted for the offense since 2004. The lower house voted 301-31, with 8 abstentions, to decriminalize adultery, but the bill must still be approved by the Senate. Individual states could still apply fines for the offense.
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Health & Science
UNAM Creates Nanoscience And Nanotechnology Center
April 22, 2008
The National Autonomous University of Mexico (UNAM) announced the creation of its nanosciences and nanotechnologies center (CNyN), where researchers will focus mostly on theoretical physics, nanostructures, advanced materials, and physical-chemistry of nanomaterials and nanocatalysis. The new center, located in Ensenada, in the state of Baja California, will seek to establish solid relations with local institutions, universities and companies involved in the sector and with peers from the San Diego and Los Angeles, California, areas.
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Sports
Mexico Aims To Send 85 Athletes To Beijing Olympic Games
May 2, 2008
To date, 66 Mexican athletes have earned the right to participate in China’s Beijing 2008 Olympic Games, all hoping to excel but in reality only expecting participation in 7 to 9 finals. Mexico aims to send 85 athletes to Beijing, while the country sent 114 athletes to Athens 2004, where they earned four medals, two silver and two bronze. Mexico’s team sports will be absent from Beijing 2008 since the men’s and women’s soccer teams, as well as the baseball team, failed to earn Beijing 2008 passes.
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Arts & Culture
German Police Seize USD 100 Million Collection Of Latin American Artifacts
April 30, 2008
German police said they have seized a large collection of Aztec, Incan and Mayan cultural artifacts that Costa Rican authorities say were illegally taken from their country. Art theft specialists from Bavaria’s criminal investigations office estimate that the collection, which includes around 1,100 masks, necklaces and statues, is worth about USD 100 million. Costa Rican authorities appealed to Germany and Interpol to help find a collection that they contend was removed from the country illegally by a 66-year-old art collector named Leonardo Augustus Patterson. Patterson, a former diplomat from Costa Rica, claims to have proper ownership of the artifacts.
Congress Revives Book Law Vetoed By Former President Fox
April 30, 2008
Congress passed a law mandating a single price for books, which had been vetoed by former President Vicente Fox in September 2006. The law would require that a new book, domestic or imported, be sold at the same price everywhere in the country. The law bars discounting of new books unless the editions are at least 18 months old and have been in stock for a year. The book law was promoted as a way of increasing reading in the country, which has one of the world’s lowest reading indexes. Mexicans on average read 2.9 books a year, according to a 2005 survey published by the National Council for Culture and Arts (Conaculta).
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Other
President Calderon Announces Plan To Offer Food Aid To The Poor
April 29, 2008
President Calderon presented a new antipoverty strategy, pledging to focus initially on delivering food aid to the poor. The program will initially benefit some 150,000 families living in 80,000 different communities, mainly rural villages that have neither schools nor health clinics. The aim of the new antipoverty initiative, “Vivir Mejor” (To Live Better), is to reunite all of the government’s social programs in one overarching strategy.
U.S. Surfer Dies In Shark Attack
April 29, 2008
Authorities say a 25-year-old surfer from San Francisco, California, has died in a shark attack off the Pacific coast in the state of Guerrero. The government said that the surfer bled to death after a gray shark bit his thigh, leaving a 15-inch (38-centimeter) wound. The attack occurred at the Troncones beach, about 60 miles (100 kilometers) west of the beach resort of Ixtapa.
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