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Energy
President Calderon: Fuel Subsidies To Quadruple To USD 19.2 Billion In 2008
May 26, 2008
President Calderon said that fixed prices for Mexican gasoline and other fuels will cost the country USD 19.2 billion in subsidies this year, a fourfold increase from 2007. Mexico's 2008 national budget was based on a USD 49 per barrel average oil price and exports of 1.7 million barrels a day. Mexican crude is now trading at more than double the budgeted price, but exports are lower than expected at 1.5 million barrels a day as the country's total oil production continues to decline. The government sets fuel prices and electricity rates in the state-run energy industry; subsidized gasoline, diesel and cooking gas have helped keep inflation under control.
CFE To Provide Electricity To Guatemala
May 29, 2008
President Calderon and Guatemalan counterpart Alvaro Colom signed a contract by means of which Mexico's Federal Electricity Commission (CFE) will sell 120MW to Guatemalan peer National Electrification Institute (INDE). Electricity will run through a 400kV transmission line stretching 103km, roughly two-thirds of which are in Guatemala. The project also entails the expansion of a substation in Tapachula, in the state of Chiapas, and Los Brillantes in Guatemala's Retalhuleu department. INDE awarded CFE the tender to supervise the expansion of Los Brillantes substation. Total investment for the project amounted to USD 55.8 million. The project is part of the bilateral agenda fixed by Calderon and Colom and the Plan Puebla Panama that aims to integrate southern Mexico, Central America and Colombia.
President Calderon Urges Passage Of Energy Reform
May 29, 2008
President Calderon urged Congress to approve his energy reform proposal after figures showed that oil production had slumped to a nine-year low. Pemex reported that April average daily production had fallen to 2.77 million barrels a day (b/d) compared with 2.85 million b/d the previous month and 3.18 million b/d in April 2007. Pemex said that production at Cantarell – which accounts for roughly half of Mexico's total daily output – has shrunk 24% in the past 12 months alone. The Energy Ministry (SENER) said that the planned opening to foreign oil companies may come too late to make up for the said fall in oil production; at current rates of decline, Mexico will become a net oil importer by 2016, and maybe sooner.
Pemex: Ayatsil Oil Discovery To Produce Up To 100,000 B/D
May 31, 2008
Pemex said that Mexico will eventually produce 70,000 to 100,000 barrels of oil per day at the Ayatsil oil field in the shallow waters of the Gulf of Mexico. Pemex is still determining the boundaries of the oil field, and expects commercial development to start in around two years. The field has a heavy grade of oil, and is located near Ku-Maloob-Zaap, one of the country's largest fields in the Campeche Sound.
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Mining
Sterlite To Acquire Asarco For USD 2.6 Billion
May 31, 2008
Sterlite Industries, the Indian subsidiary of London-based metals and mining major Vedanta Resources, has acquired the operating assets of bankrupt U.S. peer American Smelting and Refining Co (Asarco) for USD 2.6 billion. Grupo Mexico (GMex), Asarco's parent company, has also been fighting to buy the company's assets at auction. Asarco filed for bankruptcy protection in 2005 after it was sued for USD 1 billion over environmental cleanup and asbestos claims. The transaction still has to be approved by the U.S. Bankruptcy Court in Texas. The acquisition would be financed through a mix of debt and existing cash resources.
Mining Union Starts One-Day Walkout To Support Leader
May 26, 2008
Members of Mexico's National Mining and Metal Workers Union (STMMSRM) began a one-day walkout to protest the Labor and Welfare Ministry's (STPS's) refusal to acknowledge the recent reelection of Napoleon Gomez Urrutia as the union leader. Gomez Urrutia was reelected Secretary General at a union convention in which he participated by video conference, as he left Mexico for Canada in 2006, accused of misappropriation of union funds. STMMSRM leaders receive government recognition when the STPS accepts the notification from the union. The government declared the work stoppage, in which nearly 20,000 miners and metal workers participated, illegal.
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Trade & Investment
Mexico, China Sign Transition Accord On Compensatory Tariffs
June 1, 2008
Mexico and China signed an agreement setting a four-year transition period for the lifting of compensatory tariffs on Chinese imports into Mexico. The Economy Ministry (SE) said that the agreement, negotiated between November 2007 and April 2008, will avoid a series of long and complicated legal procedures given differences of interpretation on the expiry of the tariffs. The four-year transition period ends in December 2011. The industries involved include textiles, garments, footwear, toys, bicycles, baby carriages, tools, domestic appliances, electrical goods, chemical goods, and others, representing in total 9.5% of Mexico's manufacturing industry and about 1 million jobs. The accord still has to be ratified by the Mexican Senate.
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Banking, Insurance & Finance
Bank Lending To Private Sector Rises 20% In April
May 30, 2008
The central bank (Banxico) said that bank lending to Mexico's private sector increased 20% year-on-year at the end of April, led by growth in commercial loans. Direct performing loans, a measure of new lending, stood at MXN 1.52 trillion at the end of April, up from MXN 1.21 billion a year earlier. Commercial loans to businesses grew 30% on the year to MXN 732.3 billion at the end of April, led by growth in credit to the manufacturing, construction and service sectors. Mortgage loans grew 18% to MXN 264.6 billion, while consumer loans fell 7% to MXN 382.8 billion.
La Caixa Buys Stake In Grupo Financiero Inbursa
May 27, 2008
Spanish bank La Caixa's Criteria subsidiary announced that it has agreed to acquire 20% of Mexican peer Grupo Financiero Inbursa for USD 2.4 billion. Criteria will pay USD 3.71 a share for the holding, which is owned by Mexican tycoon Carlos Slim. Inbursa said that its Latin American expansion in alliance with La Caixa will be carried out under the Inbursa brand name, a condition that is part of the said accord.
Ixe Financial Group Receives Approval For Consumer Bank
May 28, 2008
Mexican financial concern Ixe Grupo Financiero said it has been authorized by the Finance and Public Credit Ministry (SHCP) to open its planned consumer finance bank. Ixe said the new bank, which will target middle-class workers, small and family businesses, will change its name to El Banco Deuno from the original Banco Mexicano de Consumo. Ixe said it plans to open the new bank as soon as it receives clearance from the National Banking and Securities Commission (CNBV).
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Business & Industry
Benetton Signs Deal With Sears Mexico
May 27, 2008
Italian clothing group Benetton has signed a deal with the Mexican unit of U.S. department store chain Sears Roebuck and Company (Sears) to develop its brand in the country, as it seeks an expansion in emerging markets. Benetton, which is known for its colorful jumpers, said it aimed to open 50 stores, taking its brand to 250 sales points in Mexico by 2010. Sears Mexico is part of Mexican billionaire Carlos Slim's conglomerate Grupo Carso.
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Automotive
Ford To Build Fiesta Automobile In Mexico; To Invest USD 3 Billion
May 31, 2008
U.S. automaker Ford Motor Company announced that it will produce its new subcompact Fiesta in Mexico and that it will destine USD 3 billion to modernize two existing factories and build a new transmission plant; the figure represents the biggest automotive investment in the nation's history. The USD 3 billion investment includes revamping of Ford's plants in the states of Mexico (Edomex) and Chihuahua, as well as a joint venture with German Getrag for a transmission plant in the state of Guanajuato. Ford will invest USD 2.4 billion and its suppliers will invest the remaining USD 600 million. About 4,500 jobs at Ford will be created. President Calderon said that Ford's investment will be equivalent to more than 13% of the foreign direct investment Mexico received in 2007.
Bosch To Invest USD 100 Million In Mexico
May 29, 2008
German autoparts manufacturer Robert Bosch said it will invest USD 100 million during 2008 in order to boost production and meet increasing local and foreign demand. Bosch said that most of the investment will be destined to optimize the nine facilities it has in the country. Works are expected to add 450 new employees to the firm's current 7,800. Bosch Mexico's 2007 production amounted to USD 918 million, a 24.2% increase compared to 2006.
Elektra Strengthens Strategies To Sell FAW Automobiles
May 29, 2008
The retail unit of Mexican conglomerate Grupo Salinas is strengthening strategies to efficiently sell automobiles from Chinese automaker FAW and end a common belief that Chinese-made vehicles' quality is poor. Firm executives have said that FAW is a partner of better reputed peers such as Audi, Volkswagen, Mazda and Toyota. Elektra said it offers the vehicles at low prices, guarantees a safe product, and awards credits easily. A USD 150 million facility to produce FAW cars in the state of Michoacan is pending authorities' approval but Elektra is confident it will begin production by year's end.
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Construction & Infrastructure
Mexico Seeks Spanish Participation In Infrastructure Projects
May 29, 2008
The government is inviting Spanish firms to play a role in the National Infrastructure Development plan (PNI), which has a budget of USD 250 billion. Spanish companies that could participate in infrastructure projects in Mexico include FCC, OHL, Globalia and Gas Natural. The PNI plan includes the construction and modernization of highways, ports and airports, as well as investments in hydrocarbons, electric energy and environmental protection. Some Spanish firms have shown interest in participating in PNI projects, which will last between 20 and 30 years and will be awarded mainly through concessions.
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Retail
Soriana Shares' Price Boosted By Recent Gigante Acquisition
May 27, 2008
Mexican retailer Soriana is enjoying a "share price honeymoon" after buying 205 stores from peer Grupo Gigante that made it the sole challenger to market leader Wal-Mart de Mexico (Walmex). Soriana stock has jumped about 21% since it announced last December it was buying 198 stores in Mexico and 7 more in the U.S. from Gigante in a USD 1.35 billion deal. By mid-2008, Soriana will have integrated most of the Gigante store systems into its own and in the second half of the year the company will rebrand the stores with its name.
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Transportation
Bombardier To Make Composite Structure In Queretaro; Invest USD 250 Million
May 30, 2008
Canadian aircraft maker Bombardier Aerospace announced that it will manufacture the composite structure for its Learjet 85 business jet at its facility in the state of Queretaro. The Queretaro site will also manufacture the electrical harness and perform subassembly systems installation; final assembly, interior completions, flight test and customer delivery of the aircraft will take place at Bombardier's facility at Wichita, Kansas. Bombardier said it will invest an additional USD 250 million to produce the said aircraft, in addition to the USD 200 million it had already spent on the Queretaro plant.
Aeromexico Begins Mexico-China Flight; Reaches Wage Accord With Attendants
May 29, 2008
Mexican airline Aeromexico inaugurated the first direct passenger flight from a Latin American country to China. Departures are from Mexico City (DF) and Tijuana, in the state of Baja California, and will arrive at Shanghai. Aeromexico said it reached a wage settlement with flight attendants, averting a strike at the carrier. Aeromexico said the flight attendants union, which represents close to 1,500 of the airline's workers, agreed to a 4.5% wage increase and other payments that it didn't specify. The union also agreed to alter some working conditions that will raise productivity by increasing flight crew availability.
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Telecommunications & Technology
Telecommunications Industry Grows 36.4% In First Three Months Of 2008
May 27, 2008
According to the Federal Telecommunications Commission (Cofetel) Mexico's telecommunications industry grew 36.4% during the first three months of the year, which is the highest growth level since the Telecommunications Sector Productivity Index (ITEL) was established in 1999. Growth in the sector was led by a 60.5% increase in mobile telephony traffic during the said period – which is highest in seven years – and by 35.2% and 22% increases in the trunking radio systems and in satellite broadcasting services, respectively.
OECD: Mexico Broadband Prices Are Organization Members' Highest
May 27, 2008
According to a report by the Organization for Economic Co-Operation and Development (OECD), Mexico's broadband prices are highest among all of the organization's members' tariffs. The OECD report states that the high broadband prices lead to increased operational costs for companies in Mexico, severely affecting their competitiveness and pushing up the price of the operation of the entrepreneurial infrastructure. Mexico charges as much as USD 18.41 for megabyte (MB) per second, while other countries such as Japan's tariffs are as low as USD 0.13 MB/s.
Telmex, Telefonica Rivalry To Provide DTH TV Will Intensify
May 27, 2008
According to a study by Signals Telecom Consulting, a rivalry between major telcos Telmex and Spanish Telefonica to provide Direct to Home (DTH) satellite TV services will intensify by 2013, a year by which the two companies will jointly have about a 30% market share in the DTH sector in Latin America. According to the consulting group, Telmex would have a 10.5% market share while rival Telefonica would cover 16.5% of the market. Signals Telecomm Consulting also said that the Latin American DTH market will be worth about USD 4.6 billion by 2013.
Ultravision Seeks To Broaden Coverage In Mexico
May 29, 2008
Mexican Cable TV Provider Ultravision said it plans to invest USD 80 million to broaden its coverage, boost production and migrate toward digital technologies. Ultravision said it will focus in the cities in which it has a presence, specializing in the provision of content to local niches that are not served by content providers that are currently specializing in international markets.
IBM Opens Global Archive Solutions Center In Mexico
May 27, 2008
IBM announced it has opened the Global Archive Solutions Center (GASC) in Mexico, which is specifically designed to help clients across the globe develop and implement long term plans to manage and archive massive amounts of business information. The opening of IBM's center is part of the company's New Enterprise Data Center strategy to help customers gain greater efficiency from their IT resources. IBM opened its GASC in Mexico's "Silicon Valley," in the state of Jalisco. IBM plans to invest more than USD 10 million over the next years in training and infrastructure costs to continue to expand the center.
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Media & Entertainment
Azteca Shifts Production From Glendale To Mexico To Cut Costs
May 29, 2008
Spanish-language television network Azteca America is now producing its U.S. national and local Los Angeles newscasts from Mexico City (DF). The company, a subsidiary of Mexican broadcaster TV Azteca, had originated its news programs for the U.S. from its facilities in Glendale, California. The network and its flagship station, KAZA-TV Channel 54 in Los Angeles, made the switch to save money amid a weak advertising market. Azteca America has laid off about 30 people in the last week, including 19 in its news division.
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Farming & Agriculture
U.S. Farms Moving Production To Mexico; See An Answer To Illegal Immigration
May 26, 2008
U.S. farm companies have started to move their fields to Mexico, where they can find qualified people, with U.S. experience and whose immigration status is not a concern. U.S. farming companies see in this move a solution to illegal immigration to the U.S. According to a 2007 survey by the U.S. farm group Western Growers, U.S. companies now farm more than 18,200 hectares of land in three Mexican states and employ about 11,000 people. The Economy Ministry (SE) said that U.S. direct investment in Mexican agriculture has swelled sevenfold to USD 60 million since 2000.
Producers Agree To Cut Rice Prices By 10%
May 29, 2008
The Economy Ministry (SE) and the Agriculture, Livestock and Rural Development Ministry (SAGARPA) said that local rice producers agreed to cut their product cost by 10% compared to international levels, in order to cushion the impact of increasing international food prices. The Ministries also said that local distributors agreed to prefer Mexican rice over the imported cereal, which amounts to nearly half of the country's rice consumption.
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Hospitality & Tourism
Bancaja, Mar Plan Megaproject On Riviera Maya
May 27, 2008
Spanish financial group Bancaja and fellow hotelier Mar announced plans for the largest residential and tourist complex on Mexico's Riviera Maya with an investment of EUR 2 billion. The project, which will be built over the next 7-15 years, was presented at the Bancaja Cultural Center with the assistance of the president of that entity and the governor of the state of Quintana Roo. The land on which the 14 components of the Gran Coral Riviera Maya will be built totals 230 hectares and will be the site for 7,000 homes, as well as hotels, sports and business areas and a golf course.
FONATUR Official Says Violence Has Not Affected Tourism
May 28, 2008
According to an official from the National Tourism Promotion Fund (FONATUR), the war that drug traffickers are waging against each other and against the federal government has not affected the tourism industry and will not have an impact on the flow of foreign visitors. FONATUR said the current figure of 21 million visitors per year will go up to 28 million per year in 2012 as several new developments will be inaugurated. FONATUR's official said that the violence had only affected border tourism and visitors who cross into Mexico for one-day trips, and added that the said visitors are more affected by customs and border procedures in the U.S., which can take up to three hours to complete for a crossing.
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Economy
President Calderon Unveils National Plan To Boost Economic Growth
May 27, 2008
President Calderon announced the National Development Funding Program 2008-2012 (PNFD) to boost the country's economic growth to 5% by 2012. The program is expected to stimulate investment and boost economic growth in Mexico by raising public income, strengthening public finances and improving financial systems. The program will also seek to strengthen the role of banks in development projects. President Calderon said the program is expected to increase annual investment in Mexico from 21.7% in 2006 to more than 25% by 2012. The plan is also expected to reduce extreme poverty and starvation by at least 30% by the end of that period.
Fiscal Surplus Amounts To MXN 112.3 Billion In 1Q
May 30, 2008
The Finance and Public Credit Ministry (SHCP) said that the government posted a fiscal surplus of MXN 112.3 billion in 1Q due to higher tax revenue. SHCP said budget revenue increased 6.8% from the same period last year to MXN 922 billion. Non-oil tax revenue rose 10.5% to MXN 451.1 billion, and oil revenue grew 11.5% to MXN 306.8 billion. SHCP also said that collections from the recently implemented flat corporate tax (IETU) alone amounted to MXN 20 billion.
Calderon Steps Against Food Inflation Draw Mixed Response
May 28, 2008
Opposition politicians have criticized a set of measures decreed by President Calderon to mitigate the impact of rising global food prices on Mexico. Opponents to the measures have said that they will only be a short-term, momentary solution to the crisis and that they do not address the core problem. The National Rural Workers Confederation (CNC) said the measures would allow other countries cheap access to the Mexican market while primarily benefiting larger industrial producers rather than small farmers. Meanwhile, Mexico's Confederation of Industrial Chambers (Concamin) promised that there will be no food shortage and expressed support for the measures.
Mexican Peso Reaches Five-Year High
May 29, 2008
Mexican peso (MXN) firmed to a five-year high after revised growth data in the U.S. bolstered views that Mexico may escape a heavy impact from its chief trading partner's economic slowdown. The peso strengthened 0.31% at the central bank's (Banxico's) reference to MXN 10.308 per dollar, its strongest level since June 3, 2003, a situation that is partly due to high oil prices, among other factors.
U.S. Economic Slowdown Not Affecting Mexico Yet
May 28, 2008
According to the Finance and Public Credit Ministry (SHCP), the U.S. economic slowdown has not hit the Mexican economy yet, but Mexico's export-driven factory sector is starting to look shaky; nevertheless, construction growth and exports to places like Europe are offsetting those losses so far. SHCP officials expect a bigger hit in 2Q as U.S. consumers demand fewer Mexican-made products.
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Border & Migration
U.S. ICE Sweeps Lead To Arrest Of 905 Immigrants
May 27, 2008
In an effort to detain undocumented immigrants, U.S. federal officers said they have arrested 905 people in a California statewide operation. More than 300 people were arrested in the Los Angeles area alone in three weeks. Officers said that most of the arrested have committed crimes, ignored deportation orders or returned to the U.S. after being removed. Half of those arrested have since been deported to their native countries. The U.S. Immigration and Customs Enforcement (ICE) has regularly sent out "fugitive operations" teams since 2003, but this was the first time all 13 teams in California had traveled the state together.
Authorities Arrest 99 Illegal Immigrants
May 30, 2008
Authorities said they arrested a total of 99 illegal immigrants in four separate operations. According to the Federal Attorney General's Office (PGR) and the Public Security Ministry (SSPF), the immigrants who were arrested are from El Salvador, Honduras, Guatemala, and Ecuador. Most of the arrested were making their way north to the U.S. According to the National Migration Institute (INM), 5,265 Central American illegal immigrants were arrested during the first two months of the year and 73% of them are Hondurans.
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Politics
Survey: 75% Of Mexicans Approve Of Calderon Administration's Performance
May 27, 2008
According to a survey by a local daily, 75% of Mexicans approve of the Calderon administration's performance, regardless of the increased violence deriving from the country's drug war. The survey showed that 15% of Mexicans believe Calderon's performance has been outstanding and 60% think it has been merely satisfying. The poll also showed that 48% of those surveyed are very confident in the army's labor, while legislators and the Federal Attorney General's Office (PGR) are seen as unreliable. People consider the country's economic situation and their personal finances to be as bad as or worse than in 2007.
PRI Launches Broad TV Platform Via Internet
May 26, 2008
The opposition Institutional Revolutionary Party (PRI) launched a TV platform via the Internet in order to have better, more active communication with society. The model is the first to be implemented in a Latin American country and was inspired by Spanish Socialist Labor Party's (PSOE) TV channel. The General Director of PRI's channel, Ramon Diaz de Leon, said that following PSOE's model, they found a relatively cheap and simple way to enhance interaction between the party and society.
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Justice, Safety & Crime
President Calderon, U.S., Mexican Governors Meet On Security, Crime
May 29, 2008
President Calderon, along with U.S. and Mexico border states' governors and officials held a meeting in Mexico City (DF) to discuss and push for more action on crime fighting and border security. California Governor Arnold Schwarzenegger offered support to President Calderon for his crackdown against drug lords; New Mexico Governor Bill Richardson urged the U.S. Congress to come with an aid plan that is also acceptable to Mexico. At the meeting, President Calderon emphasized the responsibility of the U.S. in drug trade as it is the biggest illegal substances market in the world. Other governors and government officials who were present at the meeting include Texas Governor Rick Perry and Mexico's Interior Minister Juan Camilo Mouriño.
U.S. Conditions Threaten Mexico Anti-Drug Package
May 29, 2008
Politicians, analysts and a top law enforcement official said that Mexico will reject the U.S. Merida Initiative resources if the U.S. Congress insists on linking the anti-drug aid package to a series of human rights and legal conditions along with whittling down its dollar value. Both houses of U.S. Congress have passed the package but have not agreed on a final version. Mexico's assistant Attorney General for international affairs said the conditions amount to a return to "certification," a past practice in which the U.S. unilaterally decided whether nations were doing enough to fight drug production and trafficking. Mexico considered certification a violation of its sovereignty. The U.S. Ambassador to Mexico and other U.S. officials have defended the Merida Initiative and some 25 NGOs have supported the conditions on human rights.
Latin American Ministers Meet On Terrorism, Organized Crime
May 27, 2008
Ministers of Mexico and Latin American counterparts started a four-day ministerial meeting aimed at fighting terrorism and transnational organized crime in Panama. The representative of terrorism prevention branch of the United Nations Office on Drugs and Crime (UNODC) said that the forum will serve to coordinate legislation and operative measures in the fight against terrorism and organized crime. Issues in the meeting's agenda include human rights, police cooperation, national strategies, and the prevention of funding organized crime. The first such conference was held in April 2006 and ended with the Declaration of Panama. The regional forum admitted Mexico and Peru in 2008.
Amnesty International: Rights Widely Violated In Mexico
May 28, 2008
London-based rights watchdog Amnesty International (AI) said in its latest report on the State of the World's Human Rights that Mexico was the scene of "widespread" human rights violations in 2007 and that most of those responsible continue to evade justice. AI noted that shortly after President Calderon launched a massive crackdown on drug cartels by deploying more than 20,000 soldiers and federal police, some personnel were reported to have arbitrarily detained, tortured and killed at least five people during the operations.
Mexico, Central America, Dominican Republic Create Human Rights Committee
May 27, 2008
Mexico, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and the Dominican Republic's Human Rights Commissions have agreed to create a regional committee against human trafficking. The head of Mexico's Nation Human Rights Commission (CNDH) said that the regional committee will favor the design of strategies and joint actions to fight people trafficking, which he considered one of the region's major social issues.
Justice And Public Security Reform Fully Approved
May 28, 2008
A controversial reform on justice and public security concluded the required constitutional stages to be fully approved after being passed by both chambers of Congress and by the majority of Mexico's 32 states' local congresses. The law was submitted to President Calderon to be signed and published in Mexico's official gazette (DOF). The reform was severely criticized by the National Human Rights Commission (CNDH) as the organization believes it violates people's fundamental rights in many of its articles.
U.S. DOS To Place Smuggling Detection Devices At Mexican Border Checkpoints
May 27, 2008
According to a recently issued tender in the U.S., the Department of State (DOS) will place smuggling detection devices at all the checkpoints on the Mexican borders, including those with Guatemala and Belize. The 68 mobile devices will be used to detect drugs, explosives and weapons at Mexican border checkpoints. The U.S. Embassy in Mexico said that the device to be used is the Buster K910B contraband detector.
Drug Cartel Pins Up Police Hit List In Chihuahua; Recruits U.S. Gang Members
May 27, 2008
Authorities said that the Gulf drug cartel has pinned up hit lists across Ciudad Juarez, in the state of Chihuahua, displaying the names of police officers it wants to murder. Police found three banners with the names of 21 state police officers hung on road bridges. The banners, which displayed the names in black ink, were signed by the Gente Nueva (New People) gang, a break-away group from the powerful Gulf cartel. In addition, the Los Angeles Police Department (LAPD) Gang and Operations Support division said that Mexican drug cartels are also recruiting U.S. citizens belonging to street gangs such as LA Sur 13, Calle 18, and the Mexican mafia.
Seven Federal Agents Killed In Shootout In Sinaloa
May 28, 2008
Seven federal police agents and a suspected hitman died in a shootout in Culiacan, in the state of Sinaloa and home to the powerful Sinaloa drug cartel. Four other police officers were wounded and two suspected gang members were arrested. In addition, one alleged gunman died and 16 others were arrested in the state of Jalisco in a clash between criminals and police from several departments. The gunmen had about 40 grenades, some of which they hurled at the police. They also fired at the officers with AK-47 and AR-15 assault rifles.
Official: Police Need Better Weapons In Fight With Drug Gangs
May 29, 2008
General Rodolfo Cruz, the federal police force's link with the army, said police need more powerful weapons to battle heavily armed drug cartels. Currently, police officers armed with only pistols have been at a disadvantage in shootouts with drug traffickers, who are armed with AK-47 rifles and armor-piercing bullets. Cruz said that federal forces need machine guns. Meanwhile, the Finance and Public Credit Ministry (SHCP) said that government accounts show that the 2008 budget for the Defense Ministry (SEDENA) and The Navy Ministry (SEMAR) increased 495% and 355%, respectively. According to figures, SEDENA's 2008 budget amounts to MXN 1.7 billion and SEMAR's budget is of some MXN 1.3 billion.
Police Seize 1 Million Pseudoephedrine Pills At Mexico City Airport
May 28, 2008
The Public Security Ministry (SSPF) said that police seized a shipment from India of one million pseudoephedrine pills, which are used to make methamphetamine, at the Mexico City international airport. Police said that eight cardboard boxes weighing a total of 328 kilos (722 pounds) and containing the pills were found in the restricted area of an airline warehouse, adding that the boxes had been marked "abandoned merchandise." The shipment was destined for a residence in Mexico City's Veronica Anzures neighborhood.
Poll: Mexicans See Drug Gangs Winning
June 1, 2008
According to a recently published poll, a majority of Mexicans believe the government is losing its escalating battle against drug gangs. Some 53% of Mexicans surveyed by a local newspaper said cartels are defeating security forces engaged in a nationwide crackdown. Only 24% said the government is winning, and 23% had no opinion. The daily interviewed 1,515 people across Mexico during two days. The poll had a margin of error of 2.5%.
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Sports
Santos Wins Mexican Clausura Tournament
June 1, 2008
Santos drew Cruz Azul 1-1 in the second-leg final and won the Mexican Clausura tournament 3-2 on aggregate time. Santos had won the first leg 2-1 earlier the same week. Argentine striker Emmanuel Luduena scored in the 16th minute and though Cruz Azul leveled when midfielder Jaime Lozano converted a cross from Gerardo Torrado in the 82nd, Santos won its third title following championships in 1996 and 2001.
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Arts & Culture
Mexican Painter Rufino Tamayo Hits Record At Art Auctions In NYC
May 27, 2008
U.S. art auctioneers Christie's and Sotheby's held dueling auctions of Latin American masterworks, including iconic paintings by Mexican painters Rufino Tamayo, Diego Rivera and Fernando Botero. Tamayo's "Trovador" ("Troubadour"), which depicts a musician strumming his guitar as two women watch, topped the list at Christie's New York showroom and was sold at a record sum of USD 7.2 million; the figure is a record in auctions history for Latin American painters. The piece had been expected to sell for between USD 2 million and USD 3 million.
Mexican Writer Calls Spanglish A "Beautiful" Tongue
May 29, 2008
Mexican writer and academic Ilan Stavans said that Spanglish, a blend of Spanish and English spoken in the U.S., is a "bastardized, prostituted and beautiful" language. The author of several essays on language and professor of Latin American culture at Amherst College in Massachusetts, Stavans said that Spanish should not be taught as a foreign language in the U.S. He said that there are some 45 million Hispanics in the U.S. and that many speak Spanglish because the continuous arrival of immigrants from Mexico and other parts of Latin America prevents them from forgetting their Spanish.
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Other
Mexico Promotes Timber Agenda At Biodiversity Convention
May 29, 2008
Mexico said during the ninth meeting of the Conference of the Parties (COP) to the Convention on Biodiversity, held in Bonn, Germany, that there is a need to acknowledge and increase the potential understanding of the timber genetics diversity in order to face climate change, acknowledge the function of timber products and promote a wider participation of indigenous communities in the sector.
Navy Hunts For Sharks After Attacks
May 27, 2008
The Navy searched for sharks in the ocean near Pacific surfing beaches, after two bathers were killed and another maimed in a rare spate of shark attacks. Three boats and a helicopter patrolled the sea while Navy and rescue officials scanned the horizon with binoculars from popular beaches around the southwestern resort of Ixtapa-Zihuatanejo, in the state of Guerrero. Authorities warned surfers not to go far out. The two recent fatal attacks are the first shark deaths off Mexico's Pacific coast in 30 years.
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