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Energy
Norway's PGS Wins USD 165 Million Contract Onshore Mexico
August 19, 2008
Norwegian petroleum company Petroleum Geo-Services said that it has been awarded a contract by Pemex for an onshore seismic survey in the states of Veracruz and Puebla for approximately USD 165 million. The area to be surveyed is more than 2,000 square kilometers, and works will be carried out between 2008 and 2012. The contract, starting in September, includes both data acquisition and processing. PGS has been providing onshore seismic services in Mexico since the year 2000.
Pemex To Lease Four Platforms For USD 530 Million
August 20, 2008
Pemex has launched a USD 530 million tender to lease four offshore platforms for the Gulf of Mexico. The company is looking to lease the platforms without a purchase option. Pemex needs three rigs that can operate at a depth of 76 meters (250 feet) and a fourth that can work at a depth of 91 meters (300 feet). All the platforms must have minimum drilling capacity of 6,100 meters (20,000 feet). Pemex said it also needed a drilling rig that could be used to finish, repair and deepen wells.
SENER Prepares Tender For Gas Pipeline
August 21, 2008
The Energy Ministry (SE) announced that it will launch a tender for the construction of a gas pipeline to transport natural gas from the port of Manzanillo, in the state of Colima, to Guadalajara, in the state of Jalisco. The pipeline will provide the hydrocarbon to the surrounding areas and to the Federal Electricity Commission’s (CFE) USD 700 million storage and regasification terminal in Manzanillo, which will be built by the Terminal KMS de GNL consortium, formed by Mitsui, KOGAS and Samsung.
Mexican Crude Oil Production Drops 12% In July
August 21, 2008
Pemex said that crude oil production fell 10% in July, compared to the same 2007 period. Pemex said it produced 2.78 million barrels of oil per day (b/d) in the first seven months of the year, down from 3.16 million b/d in July 2007. The drop caused exports to fall 16.3% over the same period, for an average of 1.44 million b/d. At the same time, oil export revenues climbed to a total of USD 30.1 billion, 52% higher than a year before.
PRI Eliminates Internal Ban On Private Investment In Pemex
August 24, 2008
Opposition Institutional Revolutionary Party (PRI) scrapped an internal ban on private investment in Pemex, paving the way for approval of an oil sector reform bill. At its national party assembly, the PRI voted to eliminate from its list of principles a prohibition on private investment in Pemex. The center-left PRI’s support is key to the passage of the oil sector reform bill proposed in April by President Calderon.
CFE Changes Pension Rules
August 18, 2008
The Federal Electricity Commission (CFE) said that it has implemented pension changes for new employees, which will ease future labor liabilities at the company. Under the plan, new workers will have individual retirement accounts where both the company and workers make contributions. It also extends the retirement age by five years. The CFE signed the new pension rules with the larger of Mexico’s two electricity workers unions.
Mexico Accelerates The Pace Of Gasoline Price Hikes
August 20, 2008
Mexico is accelerating the pace of gasoline price hikes in an effort to trim fuel subsidies, a move that could accelerate consumer price growth in the coming months. Pemex recently lifted the price of regular gasoline to MXN 7.33 pesos a liter, surprising motorists who are accustomed to price hikes at the start of the month. Gasoline has risen 4.3% since the start of the year, compared with a 3.7% increase in all of 2007. Officials say the country faces a USD 20 billion price tag this year for importing gasoline and diesel and then selling the fuel at a discount.
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Trade & Investment
Mexican Firms Invest USD 24 Billion Abroad In 2007
August 20, 2008
According to the Economic Commission For Latin America and The Caribbean (ECLAC), a large number of Mexican companies invested abroad approximately USD 24 billion in 2007, a figure much higher than the Foreign Direct Investment (FDI) Mexico received during the same period. ECLAC said that Brazil was the only Latin American state whose investment abroad in 2007 surpassed Mexico’s.
Mexico Foreign Direct Investment Drops 20%
August 22, 2008
Officials from the Economy Ministry (SE) say that Foreign Direct Investment (FDI) in Mexico has fallen due to the U.S. economic downturn. SE said that FDI fell to USD 10.5 billion in the first 6 months of this year, a 20% drop from the same period a year before. However, the amount puts Mexico on target to reach its USD 20 billion goal for 2008. More than half of Mexico’s FDI comes from the U.S. The European Union (EU) follows with a third of all investment, and Canada provides 8%.
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Banking, Insurance & Finance
Insurance Premiums Up 4.2% In 1H To MXN 103.39 Billion
August 18, 2008
According to Mexico’s Insurance Association (AMIS), insurance premiums rose 4.2% in the first half of the year to MXN 103.39 billion due to robust growth in life insurance. AMIS also said that life insurance premiums rose 9.8% in 1H from the like 2007 period to total MXN 42.93 billion and pensions jumped 15% to MXN 3.62 billion.
Consar: Siefores Lose MXN 16 Billion In July
August 22, 2008
According to pension regulator (Consar), pension fund managers’ (Afores) investment vehicles (Siefores) had a MXN 16 billion loss in July, 6% more than what was lost in June.
Axa Aims To Double Mexican Insurance Sales By 2012
August 18, 2008
French insurance group Axa said it aims to double its sales in Mexico by 2012 after paying about USD 1.5 billion for Dutch peer ING Groep’s local insurance operation earlier this year. Axa’s acquisition of Seguros ING gave the French company a 12% market share, more than 5.5 million clients, and leading positions in property and casualty, health and life insurance.
New Credit Unions Law Enters Into Force
August 21, 2008
The Finance and Public Credit Ministry (SHCP) announced that it has published the new Credit Unions Law in the Official Gazette (DOF). The new law, which features additions and reforms to the General Law of Credit Operations, will regulate credit unions’ organization, functioning and operations. The new law allows credit unions to broaden their services portfolio and cease to be regulated by the General Law of Credit Organizations and Auxiliary Activities.
CNBV Allows Bank Of New York Mellon To Operate; UBB Begins Credit Ops
August 21, 2008
The National Banking and Securities Commission (CNBV) has authorized the Bank of New York Mellon to begin multiple banking operations, becoming the 43rd such institution in the country. Meanwhile, Brazilian bank União de Bancos Brasileiros (UBB) announced it will start offering credit card services in Mexico.
Mexico’s Delinquent Accounts Rate Reach 8% In June
August 22, 2008
According to the central bank (Banxico), consumption credit’s delinquent accounts reached an 8% rate in June, twice as high as it is in the U.S., Argentina and Chile. Experts say that the increase in consumption credit’s delinquent accounts is due to a low penetration of credits in the Small-and Medium-Sized Companies’ (SMC) sector, as large corporations are more delinquent than SMC's..
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Business & Industry
Canacintra To Ask SE To Place Pharmaceuticals-Chemicals In Sensitive Items List
August 20, 2008
According to the industrial business chamber Canacintra, the national pharmaceutical-chemical industry and the national medicine industry could be on the verge of disappearance due to the government’s lifting of compensatory quotas on Chinese products from the said sectors. Canacintra’s president said he will ask the Economy Ministry (SE) to begin negotiations with China in order to place pharmaceutical-chemical products in the sensitive items list, on which compensatory quotas will be lifted in 2012.
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Automotive
Associations Demand Emergency Regulation Against Imported Used Cars
August 20, 2008
Mexican automotive associations said they will ask new Economy Minister, Gerardo Ruiz, to resume the negotiations his predecessor had started in order to regulate imports of used Canadian and U.S. vehicles, starting 2009. The associations will ask that an emergency regulation be issued to prevent Mexico from being “flooded with junk automobiles.” The associations said that Mexico imports more than two million used cars per year and has no efficient regulation regarding environmental impacts.
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Construction & Infrastructure
Venezuela Launches Cement Firms Nationalizations, Resumes Talks With Cemex
August 22, 2008
Venezuela said it has started the takeover of local units of cement companies Cemex, Holcim, and Lafarge, naming transition commissions amid nationalization by President Hugo Chavez. Lafarge and Holcim have agreed to compensation terms but Mexico’s Cemex rejected the government offer, and said it would seek World Bank arbitration in the dispute. The government of Mexico urged Venezuela to resume talks with the firm but President Chavez vowed to defeat Cemex in the arbitration. However, the Venezuelan government has just said that it will resume negotiations with the Mexican firm to arrive at the final purchase price within the framework of the greatest cordiality.
Cementos La Union To Open Plant In The State Of Hidalgo
August 21, 2008
Executives from Spanish cement maker Cementos La Union said the company will open its first facility in Mexico, in the state of Hidalgo. Executives did not mention financial details of the operation but said that the government of Hidalgo and the firm will officially announce the project in upcoming months.
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Transportation
Interjet Begins Operations At Mexico City Airport
August 19, 2008
Mexican low-cost airline Interjet began its first flights out of Mexico City International Airport (AICM) after purchasing the rights to operate there from troubled carrier Aerocalifornia. Initially, Interjet will fly to and from Cancun, Monterrey and Guadalajara out of Mexico City without significantly altering its operations in the central city of Toluca, in the state of Mexico (Edomex) where it previously provided service to the capital’s passengers.
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Telecommunications & Technology
OECD: Mexico Per Capita Investment In Telecomm Lower Than Other Members’
August 22, 2008
According to the Organization for Economic Co-operation and Development (OECD), Mexico’s per capita investment in the telecommunications sector amounts to USD 32.59 while the rest of the members invest USD 128.7. In addition, the federal Telecommunications Commission (Cofetel) said that Investment in the sector in Mexico fell 14% last year while revenue from Telcos grew 7%.
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Media & Entertainment
Mexico CIE Inks Deal With Live Nation
August 21, 2008
Mexican entertainment company Corporacion Interamericana de Entretenimiento (CIE) said it signed a five-year deal with U.S. concert promoter Live Nation, whose clients include Madonna and U2, to bring international artists to Latin American arenas. CIE, which organizes car races, concerts and owns the Mexico City horse racetrack, said the deal gives it exclusive rights to promote Live Nation’s artists at its Mexican, Central American and Colombian venues.
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Farming & Agriculture
U.S. Sweeteners Producers Seek Indemnity For Mexico’s Tax
August 18, 2008
According to experts, there are two remaining cases at NAFTA’s arbitration panel regarding a 20% tax that Mexico established on soft drinks made with fructose, a measure affecting U.S. sweeteners producers and which violates the FTA. There were originally three cases, the first of which was won by U.S. sweeteners producers and which led to a USD 33 million indemnity Mexico has to pay for affecting the producers’ businesses. However, U.S. producers appealed the decision since they consider their losses are much higher than what they will be compensated by the Mexican government.
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Hospitality & Tourism
SECTUR: 1H Foreign Tourism Income Up 7% To USD 7.34 Billion
August 18, 2008
According to the Tourism Ministry (SECTUR), Mexico received USD 7.34 billion from foreign tourists coming into the country in the first half of the year, up 7% from the first six months of 2007. Mexico received 11.4 million foreign tourists in the first half of the year, 4.6% more than in the first six of months of 2007. Of those, 7.2 million entered the country beyond border areas, spending on average USD 800 each.
Sonora Attracts Israeli Investment For Tourist Developments
August 20, 2008
According to the Embassy of Israel in Mexico, Israeli firm DTL is launching a tourist development in San Carlos, Guaymas, in the state of Sonora. The project would be built in the state’s most important tourist area and will feature approximately 3,000 hotel rooms. The project could receive investment from U.S. firms and receive an important number of U.S. visitors. Construction will begin in 2009.
SECTUR: Amount Of Canadian Tourists To Increase In 2009
August 21, 2008
The Tourism Ministry (SECTUR) said that the amount of Canadian tourists that will visit Mexico could increase by 178,000 people in 2009. SECTUR said that the number of Canadians visiting Mexico grew 18% in 1H when compared to figures form the like-2007 period. In addition, Tourism Minister Rodolfo Elizondo met with the main Canadian tourism operators who said that approximately 1.06 million Canadians travel to Mexico every year.
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Economy
INEGI: Mexico’s Economy Slows In 2Q
August 21, 2008
The National Statistics Institute (INEGI) said that Mexico’s economy slowed in the second quarter, hurt by weaker U.S. demand for manufacturing exports and a drop in oil production. INEGI added that the economy expanded at a slower-than-expected 2.8% annual rate in 2Q. That reading, however, would have been just 2.1% when taking into account the Holy Week vacation period and considerably lower than the holiday-adjusted rate of 3.7% in 1Q.
INEGI: Mexico’s Unemployment Rises To 4.15% In July
August 20, 2008
The National Statistics Institute (INEGI) said that unemployment in Mexico rose to 4.15% in July from 3.95% a year ago, and was sharply higher than the 3.55% registered in June. Unemployment typically rises in July as school graduates enter the job market. Urban unemployment, which measures the jobless rate in the country’s 32 largest cities, rose to 5.21% in July from 5.01% in July 2007.
INEGI: Industrial Output Fell 0.5% Year-On-Year In June
August 19, 2008
The National Statistics Institute (INEGI) said that Mexico’s industrial production sunk by 0.5% in June when compared with the same period a year ago. The decrease was largely due to a 10% drop in oil output from a year ago, while the figures indicated slight growth in the production of construction materials, manufactured goods, water, and energy. Industrial production in June increased 0.26% from May.
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Border & Migration
U.S. To Soften Requirements For Temporary Visas
August 18, 2008
U.S. President George W. Bush proposed changes to soften the requirements for temporary visas in order to allow U.S. employers to access cheaper labor force. The proposals come after U.S. firms complained about a lack of workers. The new measures would only allow firms that do not belong to the farming sector to hire foreign employees. The proposal would allow companies to hire foreign workers without having to file for “extraordinary circumstances.”
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Justice, Safety & Crime
Politicians Approve The National Accord For Security, Justice And Legality
August 22, 2008
President Calderon, state governors, lawmakers, judges and civic activists unanimously approved a 75-point national plan to combat organized crime activity blamed for nearly 5,000 deaths since the rightist head of state took office in December 2006. The so-called National Accord for Security, Justice and Legality calls for rooting out corruption in law enforcement and the judiciary, building more secure prisons, better managing spending on public safety and requiring the registration of all cell phones. More broadly, the pact says that Mexico needs to promote a culture of legality.
McCain Praises U.S.-Mexico Cooperation On Combating Drug Trade
August 21, 2008
Arizona senator and Republican presidential candidate John McCain praised efforts by Mexican officials to combat the drug trade and argued for tightening existing laws to prevent the flow of weapons into Mexico. McCain said that this is the first time that both countries have real significant cooperation. McCain said the Merida Initiative, a plan to provide the Mexican government with millions in U.S. funds to combat drug-related crime, is a good first step in the cooperative effort.
U.S. Authorities: Mexican Drug Cartels Invading Middle U.S. States
August 17, 2008
According to Indiana, Ohio, and federal U.S. drug enforcement officials, powerful and well-organized Mexican drug trafficking groups have seized control of drug distribution throughout Ohio, flooded local markets with increasingly cheap heroin and are using Dayton as a distribution hub for southwestern Ohio and parts of Indiana. The U.S. Department of Justice’s National Drug Intelligence Center said that groups connected with the Sinaloa cartel and the Juarez Cartel operate in some U.S. counties.
Chihuahua, Nuevo Leon Trying Out New Justice System
August 19, 2008
The states of Chihuahua and Nuevo Leon are at the center of a U.S.-supported effort to rebuild Mexico’s crumbling justice system, where it’s been estimated that a large amount of crimes go unpunished. The effort consists of having a cadre of new judges to hold public oral trials in which the state must prove its case. Chihuahua and Nuevo Leon are pioneering open trials to try to bring transparency and accountability to the legal process and to end a tradition of corruption, shoddy investigations, coerced testimony and an extremely low conviction rate.
U.S. Turns Over Mexican Man Accused In 1998 Massacre
August 24, 2008
U.S. immigration officials said that a Mexican national wanted in connection with the 1998 drug-related massacre of 19 people in the resort town of Ensenada, in the state of Baja California, has been captured and turned over to Mexican authorities. Officers arrested Jesus Ruben Moncada, 33, at his Los Angeles home. He was taken into custody on administrative immigration violations and was returned under heavy security to Mexico where he faces first degree murder, attempted murder and kidnapping charges.
Red Cross Gets Radio Threats In Ciudad Juarez
August 20, 2008
Authorities said that Red Cross workers from Ciudad Juarez, in the state of Chihuahua, stopped treating gunshot victims for several hours after receiving death threats over their radio frequencies. Two voices were heard over Red Cross radios threatening to kill emergency workers who cared for gunshot victims. The Red Cross ordered its personnel to stop treating shooting victims while it decided on additional security measures. Service resumed after police were sent to accompany ambulances.
Police Chief Slain A Day After Taking Job
August 22, 2008
Authorities in the state of Chihuahua said that the police chief in the northern town of Villa Ahumada, in the said state, was killed a day after replacing his slain predecessor. The officer was found blindfolded with his hands tied behind his back at a ranch near Villa Ahumada. Villa Ahumada’s previous police chief, two other officers and three residents were killed in May when 70 assailants barged into the town.
Suspected Kidnappers Beaten By Angry Mob
August 18, 2008
Seven would-be kidnappers posing as federal agents were seized and tortured by residents of the central town of Tlapanala, in the state of Puebla. A spokesman for the Attorney General’s Office of Puebla said that the seven suffered “serious” injuries. Local dailies said that the victims were mistreated for 20 hours and 2 of them had their ears cut off, a claim that was not confirmed by the AG’s office. The incident occurred when the 7 people apparently tried to kidnap a local businessman.
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Sports
Maria Espinoza Wins Olympic Taekwondo Gold
August 23, 2008
Mexican Taekwondo player Maria Espinoza won Olympic gold in the women’s over-67 kilogram weight class, defeating Norway’s Nina Solheim on points. Espinoza came out on top 3-1 with a combination of defense and rapid attacking, capping off a long day that included an earlier victory over Britain’s Sarah Stevenson in the semifinals. It was Mexico’s third medal in Beijing, following Guillermo Perez’s gold in taekwondo in the 58-kilo weight class and the bronze medal won by divers Paola Espinoza and Tatiana Ortiz in 10-meter synchronized diving.
Mexico Gives Eriksson Winning Start
August 21, 2008
Mexican midfielder Pavel Pardo scored two goals in two long-range shots in three minutes as Mexico came from behind to beat Honduras 2-1 and give coach Sven-Goran Eriksson a winning start in the third round of the CONCACAF World Cup qualifiers. A free kick from Honduran Julio Cesar Leon, nicknamed “Rambo,” which bounced in off the crossbar had given Honduras a stunning start in the 35th minute.
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Arts & Culture
Shaman Maria Sabina, Visited By Rolling Stones And Jim Morrison Honored
August 18, 2008
Mexico City’s National Museum of Popular Culture celebrated a tribute to the famous shaman Maria Sabina with talks by experts about the sacred mushrooms that brought her fame. In the last century Sabina attracted such figures as the Rolling Stones and The Doors’ lead singer Jim Morrison. The president of the Swiss Mycology Society, Daniel Job, said that “the fungi that Maria Sabina used as part of Mexican culture produces visions of the gods and of the most mystical rites.”
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Other
SEMARNAT: Closure Of Mexico City Garbage Dump Delayed
August 19, 2008
The government said that it has delayed until next year the closure of a massive garbage dump on the brink of collapse. The landfill has surpassed the maximum weight of 16.9 million tons that scientists say it can bear. The dump is one of the largest in the world. It was set to close on July 31, but Environment Secretary Juan Rafael Elvira says the city has yet to find an alternative place for the thousands of tons of garbage the landfill receives daily.
Mexico Church Assailed For Maligning Miniskirt
August 20, 2008
A Catholic priest’s condemnation of miniskirts on an official church Web site is causing outrage among some Mexican women, who say the Roman Catholic Church is making it easier to justify sexual violence against women. Father Sergio G. Roman said – in an online publication to prepare Catholics for a church family-values forum next year in Mexico City “when we show our body without prudence, without modesty, we are prostituting ourselves.” Mexican newspaper columnists lampooned the article, and women’s rights advocates have assailed it.
Mexico Starts USD 16 Million Campaign To Save Endangered Porpoises
August 21, 2008
Mexico has begun a USD 16 million campaign to save a highly endangered type of porpoise from fishing nets in the upper Gulf of California. Scientists say they believe the population of the “vaquita marina” (little sea cow) has dwindled to 150 or less from more than 500 a decade ago. The money will be dedicated to stepping up enforcement of fishing regulations in the warm, still waters of the far northern Gulf, a designated nature preserve. The government also will use the funds to buy nets from local fishermen, who will be taught other fishing methods or trained in new trades.
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