ManattJones Global Strategies
March 10, 2009
News Briefs
February 23 - March 1 , 2009
Volume VI, Issue 9

Energy | Mining | Trade & Investment | Banking, Insurance & Finance | Business & Industry | Automotive | Retail |
Transportation | Telecommunications & Technology | Media & Entertainment | Hospitality & Tourism | Economy |
Border & Migration | Politics | Justice, Safety & Crime | Health & Science | Sports | Arts & Culture | Other


Energy

Pemex's Crude Oil And Gas Findings Up By As Much As 35% In 2008
February 25, 2009
Pemex announced that crude oil and gas findings in 2008 were up between 30% and 35% when compared with 2007, but stressed that overall reserves fell despite the discoveries. Hence, Pemex will incorporate around a third more proven, possible and probable reserves, also known as 3P reserves. Mexico's 3P reserves have fallen 26% over the past decade to 44.5 billion barrels of oil equivalent as of end-2007.

Pemex Announces 170-Well Chicontepec Drilling Tender
February 25, 2009
Pemex announced a 170-well tender for the Chicontepec basin where it expects to be pumping up to 700,000 barrels of oil a day (b/d) by 2017. Pemex said it will pick the winning bid in April; work will start in May and last two years. Late last year Pemex announced two Chicontepec drilling tenders, each for 500 wells, which have attracted oil giants such as Schlumberger, Halliburton and Weatherford International. Pemex expects to produce only 72,000 b/d at Chicontepec this year.

Pemex's Tax Contributions Fall 25.6% In January
February 24, 2009
Pemex announced that its tax contributions fell 25.6% in January due to the global economic downturn and as crude oil exports also dropped during the first month of the year. Pemex said exports in January were valued at MXN 18.3 billion, down from the MXN 44.5 billion January 2008. The firm's tax contributions in January amounted to MXN 50.1 billion, down from the MXN 67.4 billion it contributed in the like-2008 period.

Colombia To Build Biofuels Plant In Chiapas
February 24, 2009
The government of Colombia and the Mexican state of Chiapas announced that they have signed an agreement by means of which the South American country will build a biofuels plant in Chiapas. Colombia also has plans to build biodiesel facilities in Panama and the Dominican Republic, within the framework of the Puebla-Panama Plan or the Mesoamerica Project. The Chiapas plant is expected to produce biofuels from any kind of oil and required investment for its construction will amount to USD 2 million, to be provided by both parties.

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Mining

Peñoles Refines Silver Abroad
February 23, 2009
Mexican miner Peñoles announced it has sent its first shipment of precious metal in bulk to be refined into gold and silver abroad since its main processing plant has been shut down by a strike. Peñoles said it sent 1,000 tons of bullion to be refined in South Korea and plans to send more bulk metal to plants in South America, Eastern Europe and Canada if the two-week-old strike drags on. Peñoles said it will have "enough gold and silver to meet clients' needs for months."

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Trade & Investment

INEGI: Trade Gap Narrows As Imports, Exports Fall
February 24, 2009
According to the National Statistics Institute (INEGI), Mexico's trade deficit narrowed in January as a sharp economic downturn in the U.S. and domestically led both imports and exports to fall by nearly a third from a year ago. INEGI said Mexico ran up a deficit of USD 1.56 billion last month, as exports slumped 31.5% to USD 15.23 billion and imports fell 30% to USD 16.79 billion.

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Banking, Insurance & Finance

Consar Approves New Commissions
February 25, 2009
Pension regulator Consar has approved new commissions that pension fund managers (Afores) can charge and which cannot surpass 1.94%. Analysts from the sector believe Afores will be affected strongly by the new measure and said that some of them are considering merging or selling operations. Meanwhile, Mexican retailer Coppel's pension fund managing unit was awarded more time in its court protection filing against modifications in the Retirement Savings Law (SAR Law).

Compartamos Sees Microfinance Weathering Tough Year
February 25, 2009
Mexican microfinance bank Banco Compartamos expects to grow lending between 20% and 25% this year even as Mexico's economy heads into recession, since small businesses continue to demand credit. Compartamos said it expects to add 300,000 new clients this year to the 1.16 million it had at the end of 2008 after a 38% increase. Compartamos provides very small loans—its average outstanding loan balance per client was MXN 4,960 in 4Q—to low-income individuals and business owners, such as crafts manufacturers and food vendors.

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Business & Industry

Coca-Cola Mexico Wins Coca-Cola Company's 2008 Woodruff Cup
February 23, 2008
U.S. softdrink maker Coca-Cola's Mexico unit won its parent company's most important prize, the Woodruff Cup, which is awarded every year to the unit that performs best during the year. The Mexican unit of Coca-Cola was awarded the prize as it surpassed its 2008 targets. Criteria for awarding the prize include the fulfillment of quantitative objectivities, social policy, environmental policy, employees' perceived motivation and relations with clients and suppliers. Coca-Cola Mexico said it will invest USD 700 million this year and its main challenge is to avoid layoffs.

Pepsi Kicks Off 2009 Investments In Mexico
February 24, 2009
U.S. softdrink maker PepsiCo's CEO Indra K. Nooyi allowed the start of the firm's 2009 investments in Mexico by inaugurating a recently enhanced facility in Celaya, in the state of Guanajuato. The USD 100 million enhancement of the plant is part of a total USD 3 billion investment Indra K. Nooyi announced after a meeting with President Calderon at the World Economic Forum in Davos, Switzerland, earlier this year.

Vitro's Vimexico To Merge With Vitro Plan After Winning Trial To Pilkington
February 23, 2009
Mexican glassmaker Vitro announced that its flat glass units Vimexico and Vitro Plan were allowed to merge by a local district court. The ruling, which the court added is definite and cannot be appealed, was opposed by U.K.-based Pilkington Group Limited (Pilkington). Last year, Vitro said that a district court in the state of Nuevo Leon rejected an attempt by Pilkington to reverse Vitro's decision to merge its subsidiaries.

Carlsberg To Distribute GModelo's Corona Beer In Eastern Europe
February 24, 2009
Denmark brewer Carlsberg announced it has agreed to extend its business cooperation agreement with Mexican peer Grupo Modelo (GModelo) to nine new markets in Eastern Europe, including Russia and Ukraine. Under the terms of the agreement, Carlsberg will get exclusive rights to import, promote and sell GModelo's Corona Extra beer. GModelo has so far been the exclusive importer of Carlsberg beer in Mexico while Carlsberg has distributed Corona through its subsidiaries in Italy, Switzerland, Malaysia and Singapore.

Rheem Manufacturing Transfers Operations To Mexico
February 23, 2009
U.S. water heater manufacturer Rheem Manufacturing announced it laid off approximately 1,200 workers from its plant in Milledgeville, Georgia, and added that it will transfer operations to its facilities in Nuevo Laredo, in the Mexican state of Tamaulipas, and to its Fort Smith plant in Arkansas. Rheem said that the water heater and cooler industry has contracted by 40% since 2005.

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Automotive

Daimler Opens New USD 300 Million Truck Assembly Plant In Mexico
February 27, 2009
German automaker Daimler announced that it is opening a new USD 300 million plant in the city of Saltillo, in the state of Coahuila, to assemble tractor-trailers for the U.S., Canadian and Mexican markets. The plant will produce 30,000 Freightliner Cascadia tractors a year and employ 1,600 workers. The plant consists of an administrative building, a training center and auditorium, a 40,000 square-meter logistics center and an 85,000 square-meter production facility.

Changan Auto To Build Cars In Mexico
February 24, 2009
Chinese automaker Changan Auto announced it will set up a factory in Mexico to produce 50,000 automobiles per year in partnership with Mexican firm Autopark. So far, a framework accord has been signed and both firms are negotiating the details of the creation of a mixed company. The Mexican plant would produce three Changan models: the Benben mini and the Zhixiang and Yuexiang sedans. Changan is the third Chinese car manufacturer to announce investments in Mexico, along with the private firm Geely, and state-owned First Auto Works (FAW).

GM Plans Temporary Shutdowns At Mexican Plants
February 23, 2009
U.S. automaker General Motors (GM) announced that it will temporarily shut down its Mexican auto plants for stretches of several days in March and April as recession-stricken consumers in the U.S. acquire fewer cars. GM will close its Silao and Toluca plants in the states of Guanajuato and the State of Mexico (Edomex), respectively, between March 2 and March 6. It will also close its Ramos Arizpe plant in the state of Coahuila, from March 9 through March 17 and again from April 6 to April 10.

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Retail

Creditors Give Comercial Mexicana More Time To Restructure Debt
February 26, 2009
Mexican retailer Comercial Mexicana (Comerci) has reached a deal with its creditors to give it more time to work on a debt restructuring. U.S. creditors Barclays, Goldman Sachs, JP Morgan and Merrill Lynch are now giving the company until March 23 to show advances in the restructuring process, which it began after defaulting on its obligations late last year. Mexican creditors such as Grupo Financiero Banorte also awarded Comerci more time to restructure debt but demand to be paid. Comerci is laboring under a debt pile of more than USD 2 billion. Comerci delayed 4Q financial results because of the unsettled dispute over debt.

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Transportation

ADO To Invest MXN 100 Million To Modernize Tuxpan Bus Terminal
February 26, 2009
Mexican bus company Grupo ADO announced that it will invest MXN 100 million to modernize the Tuxpan bus terminal, in the state of Veracruz. ADO said the move will create 300 direct jobs and 500 indirect jobs. ADO said it is investing in the modernization of the terminal as enhanced hydrocarbons extraction in the area will boost economic activity there and a better transportation infrastructure is required.

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Telecommunications & Technology

SCJN Strengthens Cofetel's Prerogatives
February 25, 2009
The Supreme Court (SCJN) has strengthened the Federal Telecommunications Commission's (Cofetel's) prerogatives and said that the latter has the legal ability to ensure that rulings by local courts are obeyed and can apply sanctions. SCJN said that although Cofetel does not have a direct capacity to establish the sanctions, it is compelled to obey current rulings and to apply existing sanctions whenever legal procedures are violated.

SCT Warns Of Fines For Companies That Fail To Apply ASL Tariffs
February 23, 2009
The Communications and Transport Ministry (SCT) has warned that it will fine telephony providers that fail to apply long distance call tariffs set in the Local Service Areas (ASL) program, which includes 70 areas, an equivalent amount of between 10,000 and 100,000 minimum wages. Analysts said the warning is directed mostly at Telmex, which has opposed the program as such operations represent an important part of its earnings. SCT expects firms from the sector to seek court protection against the measure.

SCT Awards 43 New Concessions
February 23, 2009
The Communications and Transport Ministry (SCT) announced that it has awarded 43 new concessions for cable TV and satellite TV services but declined to provide further details about the companies to which the concessions were given. SCT said that the new services will be provided mostly in the states of Michoacan, Hidalgo, Veracruz, Puebla, Sonora, Baja California Sur, State of Mexico (Edomex), Sinaloa, Durango, Oaxaca, Guanajuato, Yucatan, Tamaulipas, Nuevo Leon and Jalisco. Meanwhile, telephony provider Nextel said SCT has changed some of its concessions to allow it to provide more services. Nextel paid an initial consideration of MXN 18 million in order to obtain the authorizations.

SCT Works On Developing Its Own Broadband
February 26, 2009
The Communications and Transport Ministry (SCT) announced that it is working to develop its own broadband in order to boost the penetration of such services in Mexico. SCT's network would connect 190,000 access points during the next four years to provide broadband-supported services to approximately 30 million people. The program will allow access to the service at schools, health centers and governmental offices. SCT said funds for the project amount to MXN 200 million, which were provided by the e-Mexico trust, and to which resources provided by the Health Ministry (SSA), the Public Education Ministry (SEP) and local governments will add.

Alestra Looks To Refinance USD 173 Million In Debt; To Invest MXN 880 Million
February 25, 2009
Mexican long-distance carrier and corporate communications provider Alestra announced it is looking to refinance USD 173 million in debt that matures in June 2010. Alestra, which is 49% owned by AT&T, has USD 213 million outstanding of the 2010 notes, and faces amortizations of USD 40 million this year. In addition, Alestra said that it will invest MXN 880 million this year, 12% more than what it invested in 2007. Investment will be destined to develop new technologies and offer new services.

Mexico Mobile Operators: Wireless Subscribers Rose To 77.94 Million In 2008
February 26, 2009
According to data from the country's four mobile operators, Mexico's wireless subscribers rose to 77.94 million at the end of 2008, up from about 68.73 million the previous year. Telcel said that its subscriber base grew 12.7% year-over-year to about 56.37 million. Movistar said it grew its client base 22.3% to 15.33 million at the end of December. Grupo Iusacell saw its subscriber base fall 13.2% to about 3.51 million last year. Nextel Mexico grew 27.4% to 2.73 million clients. Prepaid subscribers represented about 88% of total wireless subscribers at the end of December, and the more lucrative postpaid clients 12%.

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Media & Entertainment

Televisa To Invest USD 500 Million In 2009
February 27, 2009
Mexican broadcaster Televisa announced that it will invest USD 500 million this year. Televisa specified that of the said amount, USD 145 million are entailed for their Sky segment, USD 220 million for their cable and telco segment, USD 75 million for gaming, and USD 100 million for open TV. Televisa also said it expects broadcasting sales to remain flat in 2009 because of the country's deteriorating economy. According to analysts and media reports, Televisa is expected to report a 7% drop in 4Q net profit as higher taxes offset gains in sales and operating profits.

SCJN Approves 20% Tax On Casinos
February 26, 2009
The Supreme Court (SCJN) announced that it has approved a federal tax of 20% on casino bets and raffle operations, denying court protection to companies from the sector that had sought it. The tax on production and services (IEPS) has been charged for since last year and SCJN was reviewing all the court protection requests. Firms that sought the protection include Grupo Televisa's Apuestas Internacionales unit and Grupo Caliente. SCJN ruled that the tax is not unconstitutional, as the firms claimed.

Carlos Slim Raises Stake In The New York Times
February 26, 2009
The U.S. Securities and Exchange Commission (SEC) announced that Mexican tycoon Carlos Slim has raised his stake in U.S. newspaper The New York Times to 7%, up from the 6.4% he had. Prices of the shares were between USD 3.6 and USD 3.7 per share. Slim recently made a USD 250 million loan to the New York Times Company to help it address its financial obligations.

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Hospitality & Tourism

Profepa Shuts Down Tourism Projects For Harming Environment
February 24, 2009
Mexico's environmental protection agency Profepa said that it inspected 14 tourism development projects in the Pacific resort town of Huatulco, in the state of Oaxaca, and closed 7 of them because they lacked environmental permits and because they were built without authorization in forested and federal areas. The most serious case was the Camino Santa Cruz-La Crucecita Hotel, a project being carried out by the National Fund for Developing Tourism (Fonatur). The project was closed, and developers fined MXN 1.6 million.

SECTUR Publishes Specs On Bidding Rules To Recover Caribbean Beaches
February 25, 2009
The Tourism Ministry (SECTUR) announced that it has published specs on bidding rules for works to recover some beaches located in the Caribbean resorts of Cancun, Cozumel and Playa del Carmen, in the state of Quintana Roo. Investment in the project is expected to amount to between USD 800 million and USD 1 billion. Work is slated to kick off in late March and last about three months.

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Economy

INEGI: January Unemployment Highest Since 2000
February 24, 2009
According to figures by the National Statistics Institute (INEGI), unemployment in Mexico last month rose to its highest level in at least nine years as the economic slowdown continued to affect the labor market. INEGI said the national unemployment rate rose to 5% from 4% in January 2008. The jobless rate was the highest on records that go back to April 2000. The number of workers registered with the Social Security Institute (IMSS) fell by more than 100,000 in January to 14.1 million. According to the Labor Ministry (STPS), workers registered with the IMSS—considered a measure of formal sector employment—were down by nearly 500,000 from October.

Banxico Defends Peso; SHCP: Reserves Seen Up By USD 20 Billion By End of 2009
February 28, 2009
The central bank (Banxico) has sold dollars (USD) directly to brokers as the peso (MXN) continues to slip to successive record lows, which have surpassed the MXN 15 per dollar. The peso was hammered by uncertainty about U.S. government efforts to shore up beleaguered banks, which pushed investors to get rid of risky assets like equities and emerging market currencies. Meanwhile, the Finance and Public Credit Ministry (SHCP) said that Mexico's international reserves are expected to increase by USD 20 billion at the end of 2009.

Banxico: Mexico's January Remittances Down 12% To USD 1.57 Billion
March 1, 2009
According to the central bank (Banxico), remittances from Mexicans living abroad fell 12% in January to USD 1.57 billion from USD 1.78 billion in the year-ago month. After rising steadily for more than a decade, to a record USD 26.1 billion in 2007, remittances slipped 3.6% in 2008 as the U.S. recession affected jobs, particularly in industries such as construction, where many migrant workers are employed.

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Border & Migration

Hispanic Legislators Launch Pro-Migration Reform Campaign
February 25, 2009
According to the Congressional Hispanic Caucus Institute (CHCI), U.S. Hispanic legislators and activist groups said they will go to churches in 17 U.S. cities to pressure the government in order to obtain approval for a migratory reform. CHCI said that the campaign will start in Providence, Rhode Island. The Institute also expects to attract other ethnic groups and have their support for the initiative.

NYT: U.S. Government Misemploys Identity Theft Law To Deport Immigrants
February 25, 2009
According to U.S. newspaper The New York Times (NYT), the U.S. government misemploys the Identity Theft Law to pressure undocumented immigrants and hasten their deportation. The NYT complained after a Mexican national that entered the U.S. illegally acquired a Social Security Card whose numbers and address belonged to other people, and his employer reported him to authorities. The migrant pleaded guilty to entering the U.S. illegally but innocent to committing identity theft. He was sentenced to 51 months in prison but the Supreme Court will hear his case. The NYT added that the incorrect application of federal law proves there is inequality and a lack of justice.

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Politics

Calderon: U.S. Should Fix Economy First, Then Immigration
February 27, 2009
President Calderon suggested that the Obama administration focus on fixing the U.S. economy before destining its efforts primarily on immigration reform. Calderon said fixing the economy is the best thing the U.S. could do at present and that it would benefit Mexicans even more than immigration reform. Calderon also said Mexico and the U.S. need to focus on creating jobs for all of their people rather than on stopping people from crossing borders.

Calderon Vows To Make Mexico A Country Of Laws
February 27, 2009
President Calderon vowed to make Mexico a country of laws and said his administration will not stop working in order to ensure the rule of law will prevail. Calderon added while defending his crackdown on organized crime that the people of Mexico see that there is a commitment from his administration to reestablish order, despite speculation, and to attract investments by offering judicial certainty and security.

IFE Counselors Abort Plans To Award Themselves A 46% Pay Raise
February 27, 2009
Counselors from the Federal Electoral Institute (IFE) aborted plans they had announced to raise their pay by 46%. The decision came as popular discontent, critics from several parties—including legislators—and the opposition to the measure from two of the nine counselors seems to have forced the officials to abort the application of the raise. IFE counselors' salaries would have been MXN 220,000 a month if the raise had been approved. The officials claimed it was their constitutional right and said they aborted plans in a gesture of solidarity with the nation. Meanwhile, Senators from leading parties urged the Low Chamber to pass the Maximum Wages Law to regulate public officials' stipend.

Legislators Analyze Parties' Proposals On Protection Of Personal Data
February 26, 2009
The Low Chamber has started analyzing proposals by the ruling National Action Party (PAN) and the Institutional Revolutionary Party (PRI) on legislation to protect the people's personal data without setting obstacles in the fight against organized crime or inhibiting private investment. Proposals include the creation of a special agency focusing on protecting personal data, inspired by the Federal Institute for the Access to Public Information (IFAI).

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Justice, Safety & Crime

U.S. Government Sees Serious Threat In Mexico Drug Violence
February 27, 2009
The Obama administration said spiraling drug violence in Mexico poses significant national security threats to the U.S. At the White House, spokesman Robert Gibbs said President Obama is monitoring Mexico's security problems. U.S. Homeland Security Secretary Janet Napolitano said aiding the Mexican government's fight against drug cartels is a top priority that demands the "utmost attention" of U.S. security officials. However, Napolitano added that her Department has contingency plans to rush additional personnel and other resources, including the U.S. military, to parts of the southern border if law enforcement agencies on the ground are overwhelmed by spillover effects from the escalating criminal violence in Mexico. Meanwhile, the U.S. Senate, concerned about the country's security in the face of the said drug war, announced that it will hold hearings on the violence and how the U.S. should respond. In addition, the U.S. condemned impunity and corruption within the Mexican government, although it also acknowledged the country's efforts to address the problem.

President Calderon Expects To Have Quelled Drug Violence By 2012
February 27, 2009
President Calderon said he expects to have quelled rampant drug violence by the end of his term in 2012, and disputed U. S. fears that his government is losing control of its territory. Calderon said the violence that killed 6,290 people last year— and more than 1,000 in the first eight weeks of 2009—indicates cartels are under pressure from military and police operations nationwide, as well as from turf wars among themselves. Calderon added that smuggling cannot be eliminated as long as Americans continue to use drugs, but hopes to beat cartels by 2012 to a point that the army and federal police can withdraw and leave the problem in the hands of local law enforcement. In recent days, Calderon issued a series of ultimatums to tell drug cartels he is not backing down from a fight, and to prepare the public for an increasingly bloody battle.

President Calderon Rejects "Failed State" Label For Mexico
February 27, 2009
President Calderon rejected reports by the U.S. government saying that Mexico is a "failed state." Calderon denied that the Mexican government is losing control of its territory to drug cartels, as the U.S. government reports claimed. Calderon said his government has not "lost any part—any single part—of the Mexican territory" to organized crime. He also calls it "absolutely false" to label Mexico a failed state. Calderon added the U.S. government should do more to fight corruption north of the border.

U.S. House Approves Extra USD 405 Million For Merida Initiative
February 26, 2009
The U.S. House of Representatives has passed a 2009 spending bill that includes an additional USD 405 million for the Merida Initiative program to fight drug trafficking and organized crime in Mexico and Central America. With a vote of 245- 178, the legislators gave the green light to the USD 410 billion "omnibus" bill for the current fiscal year, which ends September 30. It now will go to the Senate for consideration there. U.S. Defense Secretary Robert Gates said the U.S. is in the position to provide more help to Mexico in the fight against drug cartels operating near the U.S. border. Gates sees the U.S. providing Mexico with training, resources and surveillance and intelligence capabilities. Meanwhile, Mexico's Federal Attorney General Eduardo Medina Mora said that he sees no need for U.S. troops to intervene in Mexico's war on drug cartels, nor to gear up for a spillover of violence across the border.

PNC: Mexican Gunmen Threaten To Kill Guatemala's President
March 1, 2009
According to Guatemala's National Civilian Police (PNC), the armed wing of Mexico's Gulf drug cartel—the Zetas—have threatened to kill Guatemalan President Alvaro Colom. PNC said the death threat against the President was received on the PNC's emergency line and prompted the Administrative and Security Affairs Secretariat to bolster the President's security detail and restrict access to the site he uses to broadcast his weekly show. The Colom administration recently launched extensive operations against drug traffickers, arresting at least 10 suspected Zetas.

U.S.: 755 Sinaloa Drug Cartel Operatives Arrested In Operation Xcellerator
February 25, 2009
U.S. Attorney General Eric Holder announced the arrests of 755 people linked to the Mexican Sinaloa drug cartel and the seizure of 23 tons of drugs in the course of a 21-month-long nationwide operation dubbed "Xcellerator." The latest arrests were those of 52 people in the states of California, Minnesota and Maryland. The U.S. Department of Justice (DOJ) considers the Sinaloa cartel to be the largest drug trafficking organization in Mexico, responsible for shipping to the U.S. tons of cocaine and marijuana using distribution cells that are spread across the country and Canada.

Gunmen Attack Chihuahua Governor's Convoy, Kill Guard, Wound Two Others
February 23, 2009
Officials announced that unidentified gunmen opened fire on Chihuahua Governor Jose Reyes Baeza's motorcade, killing a bodyguard and wounding two others. The Governor, who was not injured, said the shooting happened after "an altercation that started a clash with rifles between members of the security detail and people aboard two vehicles." One of the assailants was left in critical condition with a head wound. The other suspects managed to get away. Reyes Baeza said in a statement that he was not the target of an attack "at any time."

Businessmen: U.S. Companies Stung By Violence In Mexico
February 24, 2009
According to businessmen, rising violence in Mexico is forcing foreign companies to change their operating procedures and shipping routes, and to tighten security for their employees. Businessmen reported problems both with drugs stowed in freight shipments and with the army checkpoints posted to detect the drugs. Entrepreneurs added that one popular highway shipping route to the U.S. border now has eight or nine army checkpoints on it. Given that checkpoints sometimes damage or delay shipments, businessmen now advise U.S. companies to use highways that do not pass through the states of northwestern Mexico.

More Troops Sent To Ciudad Juarez, Law Enforcers Amount To 8,000
February 27, 2009
President Calderon's administration has sent as many as 5,000 more troops to the city of Ciudad Juarez, which is believed to be the country's most dangerous locality. The increase would triple the number of troops and federal police officers operating there as part of President Calderon's offensive against drug traffickers. Juarez city officials said that within two weeks the anti-crime patrol force will amount to 8,000—including 5,000 soldiers, 1,600 city police and 1,000 federal agents, amongst others.

Mexico Extradites Suspected Drug Cartel Leader Miguel Caro Quintero To U.S.
February 25, 2009
The Federal Attorney General's Office (PGR) said that Miguel Caro Quintero, accused of heading the Sonora drug cartel for more than a decade has been extradited to the U.S. in Matamoros, Tamaulipas, across from Brownsville, Texas. The extradition brings to 195 the number of suspects sent to the U.S. since President Calderon took office in 2006. Caro Quintero allegedly headed a marijuana smuggling ring from 1983 to 1994. He faces drug-running charges in Arizona and Colorado. He is the brother of Rafael Caro Quintero, a legendary drug baron arrested in the 1980s.

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Health & Science

ANAFAM To Be Headed By Dagoberto Cortes, CEO For Hormona Laboratories
February 25, 2009
The National Association of Medicine Producers (ANAFAM) said that Dagoberto Cortes, CEO of Mexican laboratory Hormona, will now head the institution for a two year period. Analysts from the sector said the three main challenges he faces are to work on consolidating the renewal of the sanitary registry every five years; to lobby for changes to the Health Law on bioequivalents to be made and to ensure that the Federal Commission for Sanitary Risks (Cofepris) performs a proper supervision of medicines entering Mexico since the facility requirement was eliminated.

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Sports

Williams; Almagro Win Abierto Mexicano Telcel Tennis Tournament
February 28, 2009
U.S. female tennis player Venus Williams and Spanish male player Nicolas Almagro won the Abierto Mexicano Telcel tennis tournament (Mexican Open) in Acapulco, in the state of Guerrero, in their respective categories. Williams beat Italian rival Flavia Pennetta 6-1 6-2, while Almagro won the tournament for the second year in a row, beating French rival Gael Monfils 6-4 6-4 in the final.

Wilson Wins PGA Mayakoba Classic; Ochoa Wins Honda LPGA Thailand
March 1, 2009
U.S. 34-year old golfer Mark Wilson claimed his second PGA Tour title by two shots at the Mayakoba Classic. Wilson bogeyed 15 and 16 before parring the last two holes for a two-under 68 on the El Camaleon course at the resort of Playa del Carmen on the state of Quintana Roo's stretch of the Riviera Maya. Meanwhile, world's #1 female golfer Lorena Ochoa, from the Mexican state of Jalisco, won the Honda LPGA Thailand. Ochoa finished at 14-under 274—shooting 71-69-68 the first three days—on the Siam Country Club's Plantation Course, and earned USD 217,500 for her second straight seasonopening victory.

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Arts & Culture

INAH Presents Leoff-Vinot 8,100 Black-Market Antiquities Collection
February 24, 2009
The National Anthropology and History Institute (INAH) presented the Leoff-Vinot collection, which is made up of more than 8,100 pre-Columbian pieces, some of which are more than 3,000 years old and were bought on the black market. Considered to be the most important antiquities collection in Mexico in private hands, the items will be catalogued and researched in the archaeological zone of Xochicalco, located in the state of Morelos. The collection belonged to the late Milton A. Leoff, a U.S. dentist who moved to Mexico with his wife, where he pursued an interest in pre-Columbian art and acquired most of the pieces between 1940 and 1960 on the black market after they had been looted from ruins throughout Latin America.

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Other

Mexico City's Seeks To Significantly Change Its Waste Management System
February 24, 2009
The Mexico City government said it expects to turn one of the planet's biggest and messiest waste management systems into the greenest in Latin America, if not the developing world, as a newly formed Waste Commission is working to build four state-of-the-art processing centers in the next four years to recycle, compost or burn for energy, 85% of Mexico City's trash—compared with the current 6% recycled material. The federal government recently proposed to close the city's main landfill, saying the 50 million-ton dump has become too full and leaks pollution. Scientists dispute that, and the closing has been delayed by a city appeal in a federal court for an extension.

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*If you would like a full version of any of the articles included in this issue, please contact us so we can furnish you with the original. Please feel free to contact us at your convenience if you need further information or advice on a topic of your interest.

 

Sources

Associated Press, Calibre Macroworld, The Canadian Press, Companies' Press Releases, Compranet, The Dallas Morning News, Diario Oficial de la Federación, Dow Jones Newswires, El Economista, EFE, Excelsior, Federal Information & News Dispatch, El Financiero, The Houston Chronicle, La Jornada, Los Angeles Times, McClatchy, Milenio, The Miami Herald, The New York Times, Presidencia de la República, PRNewswire, Reforma, Reuters, El Semanario, Stock Exchange Announcements, Tribune Business News, United Press International, El Universal, U.S. Department of Justice, The Wall Street Journal, The Washington Post, The Washington Times, Xinhua News Agency.

Contacts

Editor
Rene Herrera

rherrera@manattjones.com
+52-55-5281-8297

Mexico City
Juan Casillas
jcasillas@manattjones.com
+52-55-5281-8297

John Bruton
jbruton@manattjones.com
+5255-5281-8297

Washington, D.C
Jessica Blystone
jblystone-mj@manatt.com
+1-202-585-6527

PLEASE NOTE: This newsletter summarizes recent developments and articles from other publications. It is not meant to express any opinion or advice, legal, consultative or otherwise. COPYRIGHT 2009 by ManattJones Global Strategies, LLC. All rights reserved. ManattJones Global Strategies, LLC, 11355 West Olympic Boulevard, Suite 100, Los Angeles, CA 90064. Phone: (310) 231.5660 Fax: (310) 312.4224; Web site: http://www.manattjones.com.

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