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Energy
Lack Of Storage Compels Pemex To Waste 11.5% Of Total Gas Output
March 11, 2009
Pemex reports provided by the Federal Institute For the Access to Public Information (IFAI) indicate that the company had
to waste 800 million cubic feet of gas, or 11.5% of the firm’s total output during the two first months of the year, as it has a
lack of storage capacity. The reports showed that the storage problem led Pemex to waste 20% of its gas production last
year or 1.3 billion cubic feet, by liberating the gas in the atmosphere.
IEA: Mexico Depends Heavily On Fossil Fuels, Not Ready For Renewable Energy
March 11, 2009
According to the International Energy Agency (IEA), Mexico is the only Latin American country that is not yet ready to
replace the use of carbon based fossil energy sources by renewable sources of energy. In addition, a report by the
Economic Commission for Latin America and the Caribbean (ECLAC) said that Mexico depends too much on fossil energy
and that it would have to invest approximately USD 3.9 billion in the construction, transportation and industrial sectors in
order the reduce carbon emissions.
Pemex Awards USD 687 Million Drilling Contract To Dowell Schlumberger
March 11, 2009
Pemex announced that it has awarded a USD 687 million oil well drilling contract to a consortium led by U.S.-based oil
service provider Dowell Schlumberger. The group, which includes the Mexican unit of Drillers Technology, will be drilling
500 wells in the Chicontepec field in April. The contract runs through June 2012 and is the latest major drilling deal awarded
by Pemex at Chicontepec. Pemex also announced a USD 492 million deal to rent four offshore drills for use off the coast of
the state of Tabasco, as well as two additional rigs operated by Diamond Offshore Drilling.
Pemex Awards Four Jackup Contracts To Ensco, ISO, FDL, BG, Rowandrill
March 11, 2009
Pemex announced that it awarded a Mexican unit of Ensco International two out of four offshore drilling rig contracts. Ensco
bid a combined USD 258 million to supply the two 250-foot independent leg cantilever jackup rigs. Industrial de Servicios
Outsourcing (ISO) and First Drill Limited (FDL) won another contract for a 250-foot jackup with a USD 110 million bid, and
Blackstone Gerencia (BG) and Rowandrill won a 350-foot jackup contract with a USD 125 million bid.
SEC: Slim Increases Stake In Bronco Drilling
March 10, 2009
According to the U.S. Securities and Exchange Commission (SEC), Mexican billionaire Carlos Slim increased his stake in U.
S. oil firm Bronco Drilling Company by purchasing 4.2 million shares worth a total of USD 103 million. Last year, Slim
acquired a 7.6% stake, or 2.2 million shares, in Bronco Drilling for approximately USD 15.4 million through his construction
company Carso Infraestructura y Construccion (CICSA).
Iberdrola, ACS Among Bidders To Build Electric Plant
March 11, 2009
Spanish power companies Iberdrola and ACS, which holds a stake in Iberdrola, are competing to build and operate a 376
MW combined cycle electric plant to be located in the state of Chihuahua. The two firms are among another 10 that
requested bidding rules from the Federal Electricity Commission (CFE) in order to participate in the project and which
include Union Fenosa, GDF Suez, Mitsubishi, Alstom, ICA, Fluor Daniel, Abener, General Electric, Electricidad Sol de
Tuxpan, Mitsui and Brycs.
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Mining
Grupo Mexico Refuses To Give Up In Asarco Fight
March 9, 2009
Mexican miner Grupo Mexico (GMex) said it will not give up its fight to recover its bankrupt U.S. subsidiary Asarco, despite
reports Indian rival Sterlite Industries had lowered its bid for the distressed Arizona copper miner. Sterlite said it would pay
USD 1.7 billion in cash and notes to buy Asarco, lower than the USD 2.6 billion it offered last year. Sterlite, a unit of Londonlisted
Vedanta Resources, said it had agreed with Asarco to pay USD 1.1 billion in cash, and USD 600 million in senior
secured non-interest bearing promissory notes, to be paid over a period of nine years, for substantially all the operating
assets of the U.S. firm.
Industrias Peñoles Suspends Sales, Purchases Contracts For Met-Mex
March 13, 2009
Mexican miner Industrias Peñoles announced that it has suspended sales and purchases contracts with clients and
providers directly participating in its Met-Mex complex, whose workers went on strike on February 8. Peñoles had said that
one section of 300 workers shut down the final refining process for precious metals and bismuth at the Met-Mex facility, but
another section of over 900 workers accepted a pay deal and lead and zinc production continued to operate normally at the
plant.
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Trade & Investment
DOC: Mexico’s Trade Surplus With The U.S. Falls 48%
March 13, 2009
According to the U.S. Department of Commerce (DOC), Mexico’s trade surplus with the U.S. fell 48% to USD 2.6 billion in
January when compared to the like-2008 period. Figures provided by the DOC indicate that Mexico’s U.S.-bound exports
fell 26.7% to USD 12.4 billion in January when compared to the same period last year. Meanwhile, imports of U.S. products
fell 17.6% to USD 9.7 billion in the first month of the year when compared with January 2008.
Mexico-Canada Trade Slows In January
March 13, 2009
According to Canada’s statistics department, Canadian imports of Mexican goods fell by 8.8% in January, while Mexico’s
imports from Canada diminished by 22.5% during the same period. The department said that imports from Mexico
amounted to approximately USD 813 million, while sales of Canadian goods to Mexico were worth USD 207 million.
Grupo Carso To Invest MXN 29.2 Billion
March 9, 2009
Mexican conglomerate Grupo Carso, owned by billionaire Carlos Slim, announced that it will invest as much as MXN 29.2
billion in Mexico and that it will create 34,885 direct jobs this year. In addition, Slim’s foundations Carlos Slim and Telmex
will jointly provide MXN 7.9 billion for activities to support domestic economies, development banks, infrastructure,
education, health, employment, sports and culture, among others.
Mexico, France Sign Trade, Investment Agreements For USD 800 Million
March 9, 2009
President Calderon and French counterpart Nicolas Sarkozy met during the latter’s three-day official visit to Mexico, along
with entrepreneurs and officials from both countries, and signed trade and investment agreements for about USD 800
million. French investment in Mexico will be destined this year to the nuclear, energetic aeronautical, automotive and
transportation sectors.
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Banking, Insurance & Finance
Lower Chamber Finance Commission: 1.5 Million Mexicans Overleveraged
March 9, 2009
According to the Lower House’s Finance Commission, approximately 1.5 million Mexicans are overleveraged and will not
be able to repay their loans, a figure that is expected to increase due to rising unemployment. Last year, the Mexican
Banking Association (ABM) reported that 1.3 million borrowers went into default, of whom 80% got into trouble due to credit
card debts. Meanwhile, The National Banking and Securities Commission (CNBV) announced that it will issue new credit
card rules to compel banks to award loans and credit more responsibly.
CFC Seeks To Prevent Banking Coalitions
March 9, 2009
The Federal Competition Commission (CFC) demanded that the Senate issue legislation allowing it to sanction banks that
would unite and form banking coalitions that would enhance their power within the financial system. CFC said that the
Competition Law does not contemplate scenarios when two or more competing companies agree to restrict supply, split
regional markets, jointly bid in a public tender or make sales below determined prices. CFC said those practices affect the
market severely.
Consar: Afores Vow To Buy Only Local Assets For A Year
March 12, 2009
Pension fund regulator Consar announced that private pension fund managers (Afores) are working on an agreement to
invest only local securities for the next year in a bid to help the shrinking economy. Consar, which is in agreement with the
pact, added that it is a private initiative that does not imply any changes in investment rules. The general idea of the
agreement is that for the next year, new investments made by Afores go into areas that support financing of Mexican
industry.
BMV Reports Best Result Of The Year
March 12, 2009
The Mexican Stock Exchange (BMV) reported its best result of the year with a 6.04% gain as the National Consumer Price
Index (IPC) rose 74.18 points and reached a total 18,864.87 units. Firms whose stocks contributed to the result include
America Movil, Cemex, Walmex and Grupo Mexico. Meanwhile, stocks from the more important Mexican firms listed in Wall
Street, which include Telmex and Amercia Movil, also registered an important increase.
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Business & Industry
Sanofi-Aventis To invest EUR 100 Million
March 9, 2009
French pharmaceutical company Sanofi-Aventis announced that it will invest EUR 100 million in a new plant in Mexico to
produce influenza vaccines. Sanofi Pasteur, the group’s vaccines unit, will build and operate the facility. Construction of the
plant is due to begin in 1Q and last four years. The plant will have an annual capacity of up to 25 million doses of seasonal influenza vaccine. The group said the agreement with Mexican authorities was signed in Mexico City during the recent visit
by French President Nicolas Sarkozy.
Lego To Open USD 150 Million Facility In Nuevo Leon
March 9, 2009
Danish construction toys manufacturer Lego announced that it will open a plant in the Cienega de Flores municipality, in the
state of Nuevo Leon, which would be its first facility outside Europe. Lego said that production at its Mexico plant will supply
the North American Free Trade Agreement (NAFTA) market and that it is expected to produce 10 million bricks, as the
plastic blocks are known, per year. Investment in the plant will amount to USD 150 million and it is expected to create 1,000
direct jobs and 300 indirect jobs.
FEMSA To Relocate Gramoven Facility After President Chavez Demands It
March 9, 2009
Mexican conglomerate Fomento Economico Mexicano’s (FEMSA) Coca Cola bottling facility in Gramoven, Venezuela, will
be relocated after President Hugo Chavez demanded it as the government seeks to use the land to build homes. Chavez
had given a two-week period to FEMSA to relocate its plant in the Nucleo Endojeno Fabricio Ojeda lands. Meanwhile, the
Venezuelan government announced that the nationalization process of Mexican cement maker Cemex and Spanish bank
Santander might be concluded as definite agreements could be reached soon.
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Automotive
AMIA: February Auto Production, Exports Plunge
March 10, 2009
According to the Mexican Auto Industry Association (AMIA) Mexico’s auto production and exports slumped for a second
straight month in February as the industry continued to feel the effects of declining demand in key markets. AMIA said
production last month fell 38% from February 2008 to 107,547 units, following a 51% year-on-year drop in January. Exports
in February were down 45% to 77,833 units, after falling 57% in January. Domestic new car sales fell 29% in February from
the year-ago month to 61,578 units, after falling 28% in January. Meanwhile, exports to the U.S. fell 47% last month to
53,196.
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Housing & Mortgaging
National Housing Pact To Create 2 Million Temporary Construction Jobs
March 14, 2009
President Calderon said during the signing of the National Housing Pact that construction promoted by the government will
create 2.5 million temporary jobs this year. A total of 800,000 houses will be built or remodeled in 2009. The budget
allocated for financing the purchase of public housing will reach MXN 180 billion through different organizations. Housing
loans will be available for amounts less than MXN 300,000. Finance brokers from the private sector have committed
themselves to guaranteeing funds for at least 150,000 housing loans worth a total of MXN 80 billion. Companies in the
construction sector like Cemex vowed to keep prices competitive and offer discounts.
Homex To Invest MXN 700 Million In Housing Complex In Puebla
March 12, 2009
Mexican developer Homex announced that it will invest MXN 700 million in a 4,000 housing complex in the Huejotzingo
municipality, in the state of Puebla, as part of the federal government’s Sustainable Integral Urban Development (DUIS).
The complex, known as Valle de San Miguel, will feature 1,300 so-called "green houses," which reduce energy use and
monthly costs for gas, electricity and water.
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Construction & Infrastructure
Proyectos y Desarrollos De Infraestructura To Build MXN 109.5 Million Hospital
March 13, 2009
Mexican construction company Proyectos y Desarrollos de Infraestructura (PDI), owned by businessman Alfonos Romo,
announced that it was awarded a contract by the Mexican Social Security Institute (IMSS) to build a MXN 109.55 million
hospital in the Guadalupe municipality, in the state of Nuevo Leon. Construction will last about a year and this would be the
second project PDI is awarded since last year, when it built a MXN 230 million road stretch in the State of Mexico
(Edomex).
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Retail
Comercial Mexicana Receives Derivatives Counterproposal
March 10, 2009
Mexican retailer Comercial Mexicana (Comerci) said it has received a debt restructuring counterproposal from derivatives
counterparties. Comerci defaulted on debt last October after running up massive losses on currency options, and is seeking
to restructure all its debt, which is estimated at USD 2 billion. Comerci said that it could not disclose the content of the
counterproposal, which it plans to analyze, as it represents the view of only some of those involved in the negotiation
process.
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Transportation
Obama Administration Will Seek To Reinvent Mexican Truck Program
March 11, 2009
The Obama administration said it will try to reinvent a program to allow Mexican trucks full access to U.S. highways. An 18-
month-old pilot program that allowed a few Mexican trucks beyond a border buffer zone ended when President Barack
Obama signed a sweeping government spending bill that barred funds for the pilot program. But an administration
spokesperson said President Obama has asked the office of the U.S. Trade Representative to work with the Transportation
Department, State Department and Congress to create a new trucking program.
Mexicana To Lease 25 New Boeing Airplanes; Launches New Low Cost Brand
March 9, 2009
Mexican airline Mexicana de Aviacion announced that it has reached an agreement with U.S. aircraft maker Boeing by
means of which the airline will lease 25 new 717 twin engine jets. The planes, made to carry 104 passengers, will be used
by Mexicana’s low fare airline known as "Click" starting this month. Meanwhile, Mexicana launched a new low-cost airline
called Mexicana Link, for which initial investment of USD 10 million was used, and which will start operations later this
month. Link used USD 3 million to lease CRJ-200 jets from Canadian manufacturer Bombardier.
Sarkozy: Eurocopter Considers Investing As Much As USD 550 Million In Mexico
March 9, 2009
French President Nicolas Sarkozy told President Calderon during his official visit to Mexico, that helicopter manufacturer
Eurocopter said it could invest up to USD 550 million in Mexico, starting with a parts factory. Mexico is buying six military
helicopters from Eurocopter, a division of European aerospace and defense group, and if it agrees to purchase six more
Eurocopters, the firm might build a Mexican parts factory. Eurocopter, which makes both civil and military helicopters,
already has an assembly plant in Brazil and service operations in Mexico.
Foreign Airlines Reduce Flights To Mexico By As Much As 50%
March 9, 2009
According to executives from Continental Airlines, the slowdown in the automotive industry in certain states and insecurity
in the country has led some foreign airlines to cut their flights to Mexico by as much as 50%. Meanwhile, the National
Tourism Confederation (CNT) said that competition in the Mexican airspace sector has intensified with the creation of new
regional airlines such as Maya Air, and that only four major airlines in Mexico will survive in the future.
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Telecommunications & Technology
Agency: America Movil Is World’s Third Largest Mobile Telephony Provider
March 13, 2009
According to the Informa Telecoms & Media agency, Mexican mobile telephony provider America Movil is the world’s third
largest company in the sector. The agency said that the two other largest providers of mobile telephone services are China
Mobile, which has 364 million clients, and U.K.’s Vodaphone, with 265 million customers. Informa Telecoms & Media said
that America Movil, through its subsidiaries, has a total client base of 179 million users.
CANITEC: Telmex Charged Its Clients An Extra MXN 100 Billion In Seven Years
March 11, 2009
According to the Cable Industry Chamber (CANITEC), Telmex charged its clients an extra MXN 100 billion for long distance
calls and calls to mobile telephone numbers over a seven-year period. CANITEC said in an ad published in local
newspapers that during the said period, Telmex charged clients that made long distance calls or called cell phones an extra
local call. CANITEC said Telmex had to use the said practice only a few months to balance tariffs but that it has been using
it for years, gaining as much as MXN 103 billion between 2000 and 2007.
Colombian Government Compels America Movil’s Local Unit To Reduce Tariffs
March 11, 2009
Colombia’s Telecommunications Regulation Commission (CRT) has ruled that Comcel, the local unit of Mexican telephony
provider America Movil, has a dominant position as it has a 65% market share. CRT demanded that Comcel addressed its
dominant position issue and the regulator also published rules for tariffs mobile operators can charge, which will lead to a
reduction in Comcel’s prices.
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Hospitality & Tourism
Investors Sue Donald Trump Over Failed Project In Mexico
March 15, 2009
Investors that lost millions of dollars in deposits on a failed hotel-condo on Mexico’s Baja California shores are suing U.S.
developer and millionaire Donald Trump. U.S. Attorney Bart Ring said that the 69 buyers he represents purchased 71 units
in Trump Ocean Club Resort in Tijuana, in the state of Baja California. They paid deposits totaling between USD 18 million
and USD 20 million. However, buyers were told last month that the project was being scrapped and that their deposits
would not be returned.
Economic Crisis Reduces Number Of Spring-Breakers Heading To Mexico
March 13, 2009
Hotel associations said that the number of U.S. university students spending their spring break holiday in Mexican tourist
resorts has fallen this year because of the economic crisis, though not due to fears about gangland violence. According to
the president of Acapulco’s Association of Hotels and Tourism Companies, the number of spring-breakers who have visited
that Pacific tourist resort in recent weeks is down 30% when compared to 2008. Whereas a total of 22,500 university
students arrived in Acapulco during spring break in 2008, this year’s total is expected to be roughly 15,000.
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Economy
Foreign Investors Withdrew USD 13 Billion In Bonds Over Seven Months
March 14, 2009
According to the central bank (Banxico), foreign investors have withdrawn as much as USD 13 billion from Mexico as they
got rid of government bonds over the past seven months. The said amount is equivalent to a 45.79% drop in the foreign
ownership of Mexican government bonds since August 2008. Analysts say that foreign investors are being more attracted
to countries such as China and Brazil as they offer higher economic growth and better interest rates.
Banxico: Core Inflation Accelerates Slightly In February
March 9, 2009
According to the central bank (Banxico), Mexico’s core inflation rate accelerated slightly in February, casting further doubt
on the chances of aggressive interest rate cuts by Banxico this year to counter a shrinking economy. Core consumer prices,
which are seen as an indicator of inflation trends because they exclude some volatile energy and food prices, rose 5.78% in
the 12 months through February. Annual headline inflation slowed to 6.20% in February, helped by a slowing economy and
government price controls on energy products. The headline reading was 6.28% a month earlier.
Economist Intelligence Unit: Mexico’s Economy To Shrink 2.6% In 2009
March 12, 2009
According to the Economist Intelligence Unit (EIU), Mexico’s economy will shrink 2.6% this year. EIU changed its forecast
from the expected 1.8% growth it estimated last month for Mexico’s economy to the mentioned reduction, as the country will
be more affected by negative changes in the U.S. economy than any other Latin American State.
Calderon: Former Presidents Fox, Zedillo Left Finances In Good State
March 12, 2009
President Calderon said that Mexico’s current economic stability and healthy finances are the result of good public
administration that has been present since the governments of predecessors Vicente Fox, from the ruling National Action
Party (PAN) and Ernesto Zedillo, from the Institutional Revolutionary Party (PRI). Calderon said Mexico’s economy is stable
but that catastrophic forecasts could lead to the belief that the country’s economic and financial stability is on the verge of
disaster and could boost speculation.
Peso Reaches MXN 15.5/USD Record Low; Later Regains Strength At MXN 14.04
March 9, 2009
Mexico’s peso (MXN) lost ground against the dollar (USD) and closed at a record low on stock market weakness and a
report showing continued pressure on core inflation. The peso was quoted closing in Mexico City at MXN 15.5150 to the
dollar, compared with MXN 15.2320 at the close days earlier. However, the peso later gained against the dollar for a fifth
straight session, closing at its strongest level since January as U.S. stocks surged on continued optimism about the
financial sector. The peso was quoted closing in Mexico City at MXN 14.0450/USD in more recent days.
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Border & Migration
Hispanic Legislators Succeed In Blocking Anti-Immigrant Laws
March 13, 2009
U.S. Hispanic legislators succeeded in blocking seven bills that would have limited or prevented immigrants to have access
to education, employment, legal mortgage assistance and health care. Legislators from the Latino Caucus said that the
bills, promoted by Republican legislators, were blocked and they expect they might be rejected.
U.S. To Boost Efforts Against Border Patrol Corruption Cases
March 13, 2009
U.S. officials said that the U.S. government will boost efforts to investigate and prosecute corruption cases within the Border
Patrol and that they will not tolerate dishonesty and criminal activities from government officials. The U.S. said that it will
prosecute two former CBP officers that Mexico extradited recently and which had links to a people smuggling ring that
operated in both countries.
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Politics
Presidents Sarkozy, Calderon Discuss Organized Crime, Economic Crisis
March 9, 2009
Visiting French President Nicolas Sarkozy met with President Calderon and discussed various issues, including fighting
organized crime and the global financial crisis. Sarkozy, who was on a three-day official visit, hailed the ongoing campaign
by the Mexican government to fight drug trafficking and organized crime in the country, and said his country will offer
support to the "brave and determined combat." Sarkozy also mentioned "the perfect union" between the two countries,
saying that "they were starting a new journey together." The two leaders also discussed bilateral cooperation in
environmental protection, education and technology, and signed several financial agreements.
Mexico, France Create Commission To Discuss Extradition Of French Citizen
March 10, 2009
French President Nicolas Sarkozy and President Calderon agreed to create a binational commission to discuss the
extradition of kidnapper Florence Cassez, who was convicted in 2006 of being a member of a kidnapping crew known as
the Zodiacs, led by Israel Vallarta Cisneros, code-named Cancer, who was her boyfriend. Cassez was sentenced to 60
years in prison and the commission, formed by the foreign ministries of the two countries, will seek to reach an agreement
within the framework of the Strasburg Extradition Treaty signed by both nations. Sarkozy said it is his duty as President to
help a fellow French citizen and that he was not challenging Mexican justice. Meanwhile, President Calderon said that
"nobody in Mexico, independent of their class, economic standing, or nationality, can avoid the observance of the law."
Press reports said the Cassez case created tension between the two leaders.
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Justice, Safety & Crime
Obama Considers Military Help For Mexico After Admiral Mullen’s Update
March 9, 2009
U.S. Joint Chiefs of Staff Chairman Admiral Mike Mullen briefed President Barack Obama about discussions he held with
Mexican military leaders regarding the drug wars and talked about the possibility of U.S. military capability applying to the U.
S. cooperation with Mexico. Reports from officials said President Obama was very interested in knowing what kind of
military capabilities may be applied. Mullen has said Mexico could borrow from U.S. tactics in the fight against terrorism to
fight violence. However, President Calderon and Mexican officials have said that cooperation does not require military
interventions in Mexico. Calderon urged the U.S. to take part in the drug fight with facts and results, while both Democratic
and Republican lawmakers urged officials from the U.S. Department of Homeland Security to halt the flow of weapons and
drug profits that has fueled the violence by Mexico’s drug gangs.
Texas Governor: Troops Are Needed On Mexican Border
March 13, 2009
Texas Governor Rick Perry said that the Obama administration was not doing enough to secure the border with Mexico as
top Homeland Security officials said sending troops to the region would only be a last resort. Perry said the President
"made a mistake" when he said that it was too soon for that kind of mobilization. Last month, Perry asked Washington for
1,000 troops or border agents as drug-cartel violence in Mexico escalates, and more recently, the governor of Arizona
requested more help from the National Guard.
Calderon Denies Mexico Has Lost Control Over Certain Parts Of Territory
March 10, 2009
President Calderon said that U.S. comments saying Mexico has lost control of certain parts of its territory are completely
false. Mexican Ambassador to the U.S. Arturo Sarukhan also denied a lack of governance is present in any Mexican region.
Meanwhile, the U.S. has denied that it launched a campaign against Mexico, but said they are very concerned about the
escalating levels of violence in the country, mostly in border areas.
U.S. Mexican Drug Cartels’ Capital Amounts To USD 25 Billion
March 10, 2009
According to David T. Johnson, U.S. Assistant Secretary for the Bureau of International Narcotics and Law Enforcement
Affairs, Mexico’s drug cartels’ joint capital amounts to approximately USD 25 billion and there are between 300,000 and
450,000 people working for them, growing marihuana, opium and being in charge of trafficking to the U.S. Johnson added
that in 2008, cartels produced 18,000 tons of heroin and 16,000 tons of marihuana that were bound for the U.S. The official
also said that 90% of the cocaine that enters the U.S. is smuggled through Mexico.
U.S. Cuts USD 150 Million From Merida Initiative
March 13, 2009
President Obama signed a 2009 spending bill that cut USD 150 million from the Merida Initiative and only approved USD
300 million to be delivered to Mexico. However, the Obama administration is proposing to send earlier to Mexico five Bell
412 EP twin-engine helicopters, valued at USD 93 million, as part of the Merida Initiative. Two U.S. assistant secretaries of
state had assured U.S. Congress that the government had already delivered to Mexico 60% of the resources promised
under the Merida Initiative.
Mexico Violence Prompts New Look At U.S. Gun Laws
March 12, 2009
According to a U.S. gun control expert, the Obama administration can help control drug violence in Mexico by enforcing
already existing laws. Expert Tom Diaz said that imports of certain semiautomatic rifles were regulated under the first Bush
and Clinton administrations. But he told a House panel the import rules were relaxed under the most recent Bush
administration. Diaz also said a 1930s gun law can be used to regulate imports of .50-caliber rifles also used by the cartels.
Meanwhile, the Economy Ministry (SE) said that Mexico’s legal imports of U.S. firearms have increased by 170% in the past
years, and amounted to USD 15 million in 2008.
Mexico Blasts Forbes For Putting Sinaloa Drug Cartel Leader On List
March 13, 2009
Mexico is decrying Forbes magazine’s decision to include Joaquin "El Chapo" (Shorty) Guzman, the leader of the Sinaloa
drug cartel, on its billionaires list. Forbes ranks Guzman, with an estimated USD 1 billion fortune, at 701 between a Swiss
oil-trading tycoon and an American chemical heir. President Calderon said that "magazines are not only attacking and lying
about the situation in Mexico but are also praising criminals." Mexico’s Attorney General Eduardo Medina Mora said Forbes
is defending crime by "comparing the deplorable activity of a criminal wanted in Mexico and abroad with that of honest
businessmen." However, Forbes replied and said that it believes it is deplorable that Guzman has the fortune to be placed
on the list, but that they are "only the messenger and should not be shot at."
Mexico Obtains Presidency Of OAS Inter-American Committee Against Terrorism
March 9, 2009
Mexico took on the Presidency of the Organization of American States’ (OAS) Inter-American Committee Against Terrorism
(CICTE) for the 2009-2010 term and said it will promote the parity of judicial frameworks of all the OAS members. Mexico
added it will seek to strengthen customs control measures to fight arms’ smuggling. Mexico’s representative in the CICTE’s
presidency will be Juan Miguel Alcantara Soria, who is the Federal Attorney General Office’s (PGR) deputy attorney for
international affairs.
Ciudad Juarez Welcomes 2,000 More Troops
March 13, 2009
Mexico deployed 2,000 extra troops to the border city of Ciudad Juarez, in the state of Chihuahua, to reinforce a crackdown against drug gangs. With the additional troops, the city will be patrolled by 8,500 soldiers and 2,300 federal agents. The
troops and federal agents will take control of the local police department, the state prison and even the traffic division as
part of a new strategy to combat spiking violence.
Dominion Extinction Law Enters Into Force In Mexico City
March 15, 2009
A new law allowing the government to confiscate buildings belonging to organized crime or that were acquired with illegal
funds and used for illegal activities has entered into force in Mexico City. The law, dubbed Dominion Extinction Law, says
the government will take possession of the buildings and will be exempt from paying any consideration as indemnity. The
confiscated dwellings, factories or any other kind of construction will be used for social welfare.
Sarkozy Asks Mexico To Participate In U.N.’s Peace-Keeping Operations
March 15, 2009
French President Nicolas Sarkozy asked Mexico to assess the need to participate in the United Nations’ (U.N) peacekeeping
operations. Sarkozy said that it is the "duty of a great Nation to send its soldiers to guarantee peace in the four
corners of the world." Meanwhile, a report by the Foreign Affairs Ministry (SRE) indicated that Mexico contributes over USD
32 million per year in the U.N.’s peace-keeping operations, making it the most important financial contributor to the said
actions among Latin American countries.
Mexico, U.S. Exchange 36 Inmates
March 15, 2009
Mexico and the U.S. have exchanged 36 inmates who were sent to their respective countries to serve out the remainder of
their sentences. Federal prosecutors said 10 U.S. citizens who were tried, convicted and sentenced in Mexico for homicide,
weapons possession, drug or other charges have been sent north. The U.S., meanwhile, sent 26 Mexicans back home to
serve out sentences for money laundering, drug charges or weapons possession. Three more such exchanges are planned
for this year. A 1977 treaty allows inmates convicted in either of the two nations to serve out their sentences in their home
countries.
Ciudad Juarez Police Chief Steps Down
March 13, 2009
Roberto Orduña, the police chief for Ciudad Juarez, in the state of Chihuahua, stepped down amid ongoing threats against
his life. Drug gang leaders in the city threatened to kill a police officer every day until Orduña stepped down. President
Calderon said the military will continue to help fight drug cartels until police are retrained and ready to do the job. Forty-five
thousand soldiers are involved in the drug enforcement effort. Alfonso Cristobal Garcia Melgar, an infantry colonel with the
army, is the city’s new police chief.
Men Who Killed Chihuahua Governor’s Bodyguard Worked For Drug Gang
March 9, 2009
Officials said that a group of men suspected in a roadway shooting last month that killed a bodyguard of the governor of
Chihuahua was allegedly working for La Linea drug organization. The men were allegedly tasked by La Linea –as the
Juarez drug cartel is known– to patrol Chihuahua City for members of rival narco-trafficking gangs. Officials said one man is
in custody, other suspects have been identified and the investigation continues.
Army Arrests 26 Criminals In Tijuana, Three Were Bodyguards For Governor
March 10, 2009
The army arrested 58 people at a party in the city of Tijuana, in the state of Baja California, and 26 of them have been
found to have links to organized crime groups. Among those arrested was Angel Jacome Gamboa, who is a suspected
lieutenant of Teodoro Garcia Simental, known as "El Teo" and the leader of one of the factions of the Tijuana-based
Arellano Felix drug cartel. Baja California state police officers and bodyguards for the state Governor Jose Guadalupe
Osuna Millan were also among the arrested.
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Health & Science
Lower House Commission Approves Changes To Biosecurity Law
March 10, 2009
The Lower House’s Science and Technology Commission has approved changes to the Genetically Modified Organisms
Biosecurity Law in order to prevent health risks and threats to the environment and biologic diversity. The bill expressed
legislators’ concern about the health risks and alterations in human genomics due to the use of genetically modified
organisms (GMO).
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Arts & Culture
Mexican, U.S. Scientists Run Tests For Mars Colonization
March 13, 2009
Mexican and U.S. scientists have run tests on the Mexican Pico de Orizaba volcano to try to recreate the conditions that
Mars’ surface should feature for its colonization. Scientists from both Mexican and U.S. universities and NASA said the
project might need to be carried out between 100 and 1,000 years. The scientists said that recreating the earth’s
atmospheric conditions in Mars to make the planet inhabitable will consist of three phases, including the liberation of
greenhouse gases to heat the planet and allow ice to melt and create oceans.
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Other
Plan To Light Up Pyramids Might Be Cancelled
March 13, 2009
Authorities said that the controversial project to light up the Teotihuacan pyramids at night will have to be modified to fit in
with the archaeological site or be canceled. In recent months, several sectors have opposed the project, organized by the
National Anthropology and History Institute (INAH) and the government of the State of Mexico (Edomex), because they
considered that using drills to install lighting in the area would damage the cultural heritage site.
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