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Energy
President Calderon: Pemex’s Reserves Fall For 10th Consecutive Year
March 17, 2009
President Calderon said during the commemoration of the 71st anniversary of Mexico’s expropriation of foreign oil
companies’ assets that Pemex’s reserves of crude and natural gas fell for the 10th consecutive year in 2008, as the
company reported reserves of 14.3 billion barrels. In 2008, Pemex saw its output fall at the fastest rate in 66 years. Last
year, Pemex’s reserve replacement ratio was 72%, an increase from 50.3% the previous year. The new goal is to achieve a
100% replacement ratio by 2012. Meanwhile, the Senate approved four independent directors for Pemex’s board as part of
the energy reform approved last October.
Pemex To Increase Power Supply To Ku-Maloob-Zaap Oil Field
March 17, 2009
Pemex has announced upcoming tenders for the installation of an underwater power cable and the construction of an
offshore platform to increase electricity supplies to the Ku-Maloob-Zaap oil field’s production platforms. In January Ku-
Maloob-Zaap overtook Cantarell as the country’s largest field with production of 787,000 barrels a day (b/d). Pemex
expects output at Ku-Maloob-Zaap to average 712,000 b/d over the next seven years, compared with 423,000 b/d at
Cantarell, which is in steep decline. The company has slated a USD 1.6 billion investment for Ku-Maloob-Zaap this year.
CFE: Losses From Illegal Use Of Electricity Amount To MXN 7.6 Billion
March 17, 2009
The Federal Electricity Commission (CFE) reported that it has identified 103,966 dwellings or commercial establishments
that use electricity illegally by not paying their due for the service. CFE added that losses deriving from the said practices in
2008 amounted to MXN 7.3 billion, although the percentage of those using electricity illegally only represent 0.39% of
CFE’s client base.
States To Submit Bids For New Refinery
March 18, 2009
President Calderon said during the commemoration of the 71st anniversary of Mexico’s expropriation of foreign oil
companies’ assets that the governments of over nine states have submitted bids for a tender to build a new refinery.
Legislators, unions and experts from the oil sector will discuss every state’s proposal and will communicate their opinions;
the election of the site for the refinery will be published on April 15. President Calderon added that the election of the
location for the refinery will be made following technical and economic criteria, and that Pemex will have to justify its choice.
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Trade & Investment
Mexico Issues List Of U.S. Products Subject To Punitive Tariffs
March 18, 2009
The Mexican government released a list of 89 U.S. products that will face import tariffs of up to 20% in reprisal for the U.S.
Congress’ cancellation of a program under which some Mexican trucks were allowed to operate north of the border. The list
includes fruits, juices, wines, batteries and cleaning products. The affected products originate in more than 40 different U.S.
states and represent roughly USD 2 billion in annual U.S. exports to Mexico. Economy Minister Gerardo Ruiz Mateos said
the measure seeks to preserve the integrity of the North American Free Trade Agreement (NAFTA). In addition, Mexico
warned the list could grow unless there is progress in resolving the dispute. Meanwhile, the Obama administration said that
a new program to allow Mexican truckers to cross the border will be unveiled soon.
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Banking, Insurance & Finance
Mexico Becomes Part Of The Financial Stability Forum
March 22, 2009
The Finance and Public Credit Ministry (SHCP) announced that Mexico was included as a member of the Financial Stability
Forum (FSF) during the organization’s most recent plenary meeting in London. SHCP added that with its inclusion, Mexico
will be empowered to participate actively in the international financial system’s reform shaping process.
SHCP: Citi Can Keep Banamex; Opposition Challenges Decision
March 22, 2009
The Finance and Public Credit Ministry (SHCP) issued an opinion that suggests U.S. banking group Citibank will be able to
retain its Mexican unit, Banamex. SHCP said that a Mexican law banning foreign governments from owning stakes in
Mexican banks could be overlooked in exceptional times like the current financial crisis, although it did not mention Citi by
name. SHCP added it would ask Congress to amend the law to permit participation in cases of emergency. Meanwhile, the
opposition Institutional Revolutionary Party (PRI) said it will challenge the decision and insisted on the fact that it breaks the
law. Other opposition lawmakers had lobbied President Calderon to return Banamex to Mexican hands, saying foreigners
were now too dominant in the banking system.
ABM: Banks To Stick To 2009 Lending Forecast Despite Downturn
March 19, 2009
The Mexican Banking Association (ABM) expects lending to grow between 6.5% and 8% this year, a forecast that sticks to
the group’s previous estimate even as the economic backdrop deteriorates. ABM said they believe that their growth
estimates are still valid and reminded that they were "cautiously optimistic" about lending this year, although much would
depend on demand for credit and the economy. ABM expects the country’s banks could make between MXN 114 billion
and MXN 140 billion in new loans. Commercial loans are forecast to grow between 10.5% and 12.5%, mortgages between
7.5% and 9.5%, while consumer loans are expected to range between a drop of 2% and a rise of 1%.
CNBV Suspends Local Stanford Funds
March 20, 2009
The National Banking and Securities Commission (CNBV) announced that it has temporarily suspended the sale of mutual
funds by a local unit of Stanford Financial Group. The firm said CNBV suspended the locally traded funds Stanford
Aggressive, Stanford Growth and Stanford Balanced Growth. The decision by CNBV follows an investigation started last
month into whether investors were illegally sold foreign securities by Stanford’s local unit. Mexican law prohibits financial
intermediaries from offering foreign investments unless they are approved by the CNBV for sale to the public by authorized
banks or brokerages.
Mexican Banks Seek To Unite To Better Address Foreign Competition
March 18, 2009
Mexican banks are seeking to unite in a block, so far called the National Union of Financial Institutions (UNIF), to better
address foreign competition and increase their influence spectrum with authorities in order to succeed in obtaining fair
regulation and market conditions. UNIF specified that it is not competing with the Mexican Banking Association (ABM) and that some of UNIF members will continue being members of ABM. Some of the banks to participate in UNIF include Banco
Azteca, Banco Inbursa, Banco Coppel and Afirme, among others.
Banorte To Acquire Remaining 30% Stake In U.S. INB Bank For USD 150 Million
March 20, 2009
Mexican bank Grupo Financiero Banorte said it will acquire the 30% stake it did not already own in the U.S.- based Inter
National Bank (INB) for USD 150 million. Banorte had purchased a 70% stake in INB for USD 259 million in 2006. Banorte
said the operation could increase its loan portfolio by as much as 12% this year and added it is cautiously optimistic it can
reach its forecast of 10% loan growth this year following good operating results in January and February.
Consar: Pension Savings Flat At MXN 855.17 Billion In February
March 17, 2009
According to pension regulator Consar, compulsory retirement savings managed by pension fund companies (Afores)
amounted to MXN 855.17 billion at the end of February, practically unchanged from a year ago. Total assets under
management, including voluntary and other types of savings, as well as pension companies’ regulatory capital, grew 6.6%
on the year to MXN 924.94 billion, but were down 4.5% from the close of January. Consar said the average net yield on
pension savings, excluding commissions, was 2.53% for the three-year period ending February 28, down from 4.47% at the
end of December and well below the 9.43% posted in March 2008.
AIG Mexico Has Own Capital, Reserves; Parent Company Operates Normally
March 20, 2009
U.S. insurer American International Group’s (AIG) Mexican subsidiary AIG Seguros Interamericana said that it has enough
independent capital and reserves to continue operating normally. AIG Mexico specified that it has not suffered changes in
its financial situation and that Mexican Law and authorities protect its capital. AIG Mexico denied that its parent firm was on
the brink of collapse and explained that U.S. Treasury Secretary Timothy F. Geithner said he would seek that AIG
restructure its debt and pay its due to the Treasury and the Federal Reserve, despite press reports that suggested the firm
would disappear.
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Business & Industry
INEGI: Industrial Output Plunges 11% In January
March 18, 2009
According to the National Statistics Institute (INEGI), Mexican industrial output plunged in January at its fastest pace since
1995, contracting 11.1% from a year earlier as the U.S. recession slammed Mexico’s factories. Manufacturing output
tumbled at an annual rate of 14.9% in January. Construction sank 8.5%, year-on-year, due mostly to less new home
construction as the downturn spreads from exporters to the larger economy. Oil production fell 3.5% compared to the same
month in 2008.
Creditors Give Vitro More Time To Negotiate Debt
March 17, 2009
Mexican glassmaker Vitro announced that five banks agreed to hold off on U.S. legal action while they negotiate payment
of its defaulted debt. Credit Suisse, Calyon, Merrill Lynch, Barclays and Citi will give Vitro until April 24 to reach an
agreement on payment of money owed as a result of losing derivatives bets. Monterrey-based Vitro, once a major
glassmaker but now struggling with high debt and falling sales, said it expects Deutsche Bank, another counterparty to its
derivatives bets, to also agree to hold off on legal action. Vitro failed to pay USD 293 million in obligations related to its
derivatives.
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Automotive
Experts: Mexican Automotive Sector On The Verge Of Disaster
March 18, 2009
Experts said that Mexico’s automotive industry is on the verge of disaster as it has been hit by one of its worst crises in
recent decades. Mexico’s domestic auto sales fell 6.8% during 2008, to 1.03 million vehicles. Meanwhile, car exports to the
U.S. plunged 52% to 89,242 units in the January-February period. The Mexican Association of Automobile Distributors
(AMDA) and the Mexican Auto Industry Association (AMIA) called on the government to waive a tax on new cars for the
rest of the year, raise the tax-deduction ceiling for companies buying new cars, and use state development banks to inject
liquidity into the sector. AMDA and AMIA are also asking the government to promote the replacement of old cars, which
would entail safety and environmental benefits, as well as limit used car imports from the U.S. by imposing more stringent
requirements.
(INA): Mexican Autoparts Makers Need Over USD 500 Million To Address Crisis
March 19, 2009
According to the National Autoparts Industry (INA), the ten largest Mexican autoparts manufacturers the government said it
would support financially would require over USD 500 million to address the current global economic downturn. INA said
there are about 500 Mexican autoparts makers but that those to benefit the most from government support announced by
the Economy Ministry (SE) would be the ten largest exporters. INA added that production has fallen between 30% and 40%
in recent months due to technical stoppages. INA said the estimated value of Mexico’s autoparts market amounts to USD
9.5 billion.
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Construction & Infrastructure
PlaniGrupo To Invest USD 300 Million To Build Malls In Mexico
March 18, 2009
Mexican commercial complexes developer PlaniGrupo announced that it will invest USD 300 million this year to build ten
commercial centers for the medium- to low-income segment of the population. PlaniGrupo said the 2009 investment is 50%
higher than it was in 2008 and that it is eyeing foreign markets such as Colombia and certain Central American countries.
The malls will be located in the states of Nuevo Leon, Oaxaca, Tamaulipas, Coahuila, Jalisco, EdoMex and Baja California
and will feature retailers as Wal-Mart, Chedraui and HEB.
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Retail
ANTAD: Same-Store Sales Fall 1.4% In February
March 18, 2009
Mexican Retailers Association (ANTAD) said its members’ same-store sales fell 1.4% in February, partially hurt by two
fewer calendar days compared with the same 2008 month. Same-store sales are those recorded at stores that have been
open for at least 12 months and are used by analysts as an economic performance gauge. February sales confirmed a
recent trend in customers’ behavior, which is sticking to food purchases, helping supermarkets to hold to marginal gains,
but foregoing clothing and other non-essential acquisitions, which has greatly hurt department and specialty store sales in
recent months.
Comerci Submits New Debt Restructuring Proposal
March 19, 2009
Mexican retailer Comercial Mexicana (Comerci) said it has presented a new debt restructuring proposal to its derivatives
counterparties. The company did not provide further details on the proposal, which is follow-up to a counterproposal it
received earlier this month, in response to an original plan submitted in December. Comerci defaulted on debt last October
after running up massive losses on currency options and is seeking to restructure all of its debt. It had estimated its
derivatives losses at USD 1.1 billion, but faced claims of twice as much.
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Transportation
Railroad Companies Affected By Slowdown In Auto Trade
March 17, 2009
The Mexican unit of U.S. railroad company Kansas City Southern (KCSM) said that the railroad sector has been affected
due to the reduction in Mexico’s auto output and domestic sales, which has led to a decrease in car exports to the U.S.
KCSM said that merchandise transportation by train decreased by 4% between January and February and warned that the
percentage might increase at the closure of 1Q.
Mexicana Link To Feature Flights To The U.S.
March 17, 2009
Mexican airline Mexicana de Aviacion said it will increase the amount of flights to the U.S. through its recently launched lowcost
airline Mexicana Link. Mexicana Link’s flights will depart from the Guadalajara airport, in the state of Jalisco. Initial
investment in the airline amounted to USD 10 million and it will start operating later this month. Link used USD 3 million to
lease CRJ-200 jets from Canadian manufacturer Bombardier Aerospace.
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Telecommunications & Technology
Telecommunications Sector Grows 14.2% In 2008
March 20, 2009
According to the telecommunications sector production index, Mexico’s telecommunications industry grew by 14.2% at
annual rates during 2008. However, the percentage indicates a slowing trend of approximately 10% when compared to the
quarterly growth rate of 4Q, 2008. The 14.2% growth rate has been the lowest registered by the index in the last six years.
SE: Triumph Group To Invest USD 208 Million In Zacatecas
March 18, 2009
The Economy Ministry (SE) announced that U.S. aerospace supplies manufacturer Triumph Group will invest USD 208
million in Mexico for the construction of a specialized technological park to produce metallic parts for the aerospace
industry. The park will be located in the state of Zacatecas and should create 1,200 jobs during the first construction phase.
SCT Allows Nextel To Provide Additional Telecomm Services
March 18, 2009
The Communications and Transport Ministry (SCT) has authorized digital trunking provider Nextel de Mexico to offer
additional telecommunications services countrywide, allowing it to compete in the fixed and mobile telephony sectors, as
well as in the VoIP sector. SCT made modifications to three concession titles awarded to Nextel in order to allow it to enter
the other telecomm markets.
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Hospitality & Tourism
Banxico: Tourism Revenue From Foreign Travelers Falls Dramatically In January
March 20, 2009
According to figures by the central bank (Banxico), Mexico’s tourism revenue from foreign travelers fell dramatically during
January, being the worse drop during such a month in the past 15 years. Banxico said that revenue originated by foreign
tourists to Mexico amounted to USD 1.1 billion in January, 7.5% or USD 97 million less than compared to the like–2008 month.
Mexico City Proposes To Abolish Visas For Chinese Tourists
March 19, 2009
Mexico City’s Tourism Minister Alejandro Rojas said he has proposed the Federal Government abolish the visas for
Chinese tourists. Rojas said while addressing the opening of the first China–Mexico International Conference of Tourism
that the measure would help attract more Chinese travelers to the country. Rojas stressed that roughly 18,000 Chinese
tourists among millions going abroad each year chose Mexico City as a destination.
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Economy
Banxico Slashes Rate To Boost Slowing Growth; Stem Impact Of U.S. Recession
March 20, 2009
The central bank (Banxico) slashed interest rates by 0.75% in a bid to boost slowing growth and stem the impact of
recession in the U.S. Banxico reduced its benchmark lending rate from 7.50% to 6.75%, the lowest since 2004, following
last month’s quarter-percentage point reduction. Banxico warned that the worsening global economic crisis "is significantly
affecting financial markets, capital flows and the development of emerging economies," suggesting that it may be more
aggressive in future moves.
Banxico: Foreign Reserves Down USD 493 Million To USD 79.33 Billion
March 18, 2009
The central bank (Banxico) said that foreign reserves fell by USD 493 million last week to USD 79.33 billion as it sold USD
500 million into the exchange market. Banxico sold the USD 500 million under a new mechanism to auction USD 100
million a day without a minimum exchange rate, as a way of curbing volatility in the peso. Other operations resulted in a net
reserves gain last week of USD 7 million. Reserves as of March 13 were down USD 6.11 billion from the end of 2008.
Peso Strengthens, Reaches Best Level In Two Months
March 18, 2009
The peso (MXN) has strengthened about 11% in the past week from an all-time low on March 9 of MXN 15.60 to the dollar
and was giving back some gains trading in Mexico City at MXN 14.04/USD. Analysts said that the appreciation of the
Mexican currency has contributed to the relief of certain companies that were experiencing a low demand for their products,
such as Bachoco, Alsea, Bimbo and Kimberly Clark de Mexico, and whose operating margins were affected as their
production costs’ imports’ percentage amounts to as much as 40%.
Banxico Governor Sees Mexico Among First Countries To Recover From Crisis
March 20, 2009
Guillermo Ortiz, Governor of the central bank (Banxico), said that he expects Mexico to be one of the first emerging markets
to follow the U.S. out of the global economic crisis. Ortiz said during the Mexican Banking Association’s (ABM) annual
convention, that "Just as Mexico has been especially affected by the crisis due to its proximity to the U.S., it will also be the
first country to recover when the recession starts to dissipate." Mexico is expected to join the U.S. in recession this year.
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Border & Migration
Obama Tells Hispanic Caucus He’s Willing To Push For Immigration Overhaul
March 18, 2009
U.S. President Barack Obama told members of the Congressional Hispanic Caucus that he is still willing to push for a
comprehensive immigration overhaul during the first year of his presidency. Hispanic lawmakers and the president
discussed specific timelines for trying to win passage of legislation, but neither side was speaking publicly about dates for action following their meeting. The White House’s 133–word statement about the meeting used the words "immigration" and
"reform" only in reference to an upcoming trip by Obama to Mexico to visit President Calderon.
U.S. Deportations Of Immigrants Create More Single-Parent Families
March 17, 2009
Immigration analysts stated that the wives of Hispanics who are arrested and deported are the ones hurt most by
immigration raids, which force them to become the sole support of the household. U.S. Congressmen led by Illinois
Democrat Luis Gutierrez under the "Families United" campaign are urging President Barack Obama and the U.S. Congress
to begin debating laws to help the 12 million undocumented aliens living in the U.S. Gutierrez met with Obama to share with
him the stories of children, wives and mothers that have been separated from their menfolk and to expose the problems
caused by such a phenomenon.
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Politics
Obama To Make Official Visit To Mexico In April
March 18, 2009
U.S. President Barack Obama said that he will travel to Mexico next month as part of a journey that will take him to the
Summit of the Americas in Trinidad. Obama told members of the Congressional Hispanic Caucus that the Mexico trip would
include meetings with President Calderon "to discuss the deep and comprehensive U.S.–Mexico relationship, including how
the United States and Mexico can work together to support Mexico’s fight against drug-related violence and work toward an
effective, comprehensive immigration reform."
President Calderon Welcomes Norwegian Princes To Mexico
March 17, 2009
President Calderon welcomed Norway’s Crown Prince Haakon Magnus and Princess Mette-Marit to Mexico, praising the
state of bilateral relations and calling for their countries to work together in dealing with climate change. During the
welcoming ceremony, Calderon said the nations of the world must unite to meet great challenges like the financial crisis
and climate change, since these problems menace the survival of millions, and added that the visit will revitalize relations
with Mexico in the aspects of trade, education and energy, to which Norway has contributed its enormous experience.
Belgian Royals Make Visit To Mexico
March 23, 2009
Belgium’s Crown Prince Philippe and Princess Mathilde are visiting Mexico with a delegation of businessmen to strengthen
trade and investment ties. The royals met with President Calderon to discuss areas of cooperation, while the business
delegation’s efforts were expected to focus on aerospace, engineering, infrastructure and manufacturing opportunities.
Crown Prince Philippe said that "the world is going through a difficult moment, and that it is why this is an important time to
strengthen ties and friendship." The Belgians are also expected to look at the medical, pharmaceutical, energy and tourism
sectors, as well as trade in cacao, the raw ingredient for chocolate, which Mexico grows.
Mexico’s Political Parties Accuse Each Other Of Drug Links
March 20, 2009
The leaders of Mexico’s current and former ruling parties, the right-wing National Action Party (PAN) and the centrist
Institutional Revolutionary Party (PRI), mutually accused one another of tolerating drug trafficking in Mexico. PAN chairman
German Martinez called on the PRI to state whether it supports the federal government’s crackdown on drug cartels or if "it
is on the side of people who have links, according to the DEA, to the Juarez cartel." In response, PRI chairwoman Beatriz
Paredes blasted Martinez’s speech as "immature" and "harmful to democracy," adding that the only goal of the accusation
was to "score electoral points." Mexicans will go to the polls July 5 to elect members of the lower house of Congress, 11
state governors, mayors and state legislators.
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Justice, Safety & Crime
U.S. Steps Up Mexican Drug Gang Fight
March 22, 2009
U.S. officials said they are moving to crack down on supplies of weapons and cash moving from the U.S. to Mexican drug
cartels. Homeland Security Secretary Janet Napolitano said the White House is moving to intercept money and guns going
to the gangs and will put more federal agents and equipment at the border to deal with the increasingly violent actions of
the cartels. In a bid to combat the flow of U.S. guns, ammunition and grenades to Mexico, new equipment such as vehicle
weight scales and automated license-plate readers linked to databases will likely be deployed.
U.S. Senators Urge Anti-Drug Help For Mexico
March 18, 2009
Members of a U.S. Senate subcommittee said that the U.S. needs to curb domestic drug and gun trafficking to help Mexico
end its ongoing drug cartel wars. At an unusual combined hearing of the Senate Judiciary Subcommittee on Crime and
Drugs and the Senate Caucus on International Narcotics Control, lawmakers said repeatedly that Washington’s inattention
to decades of rampant drug use by Americans has played a central role in the crisis. Wide ranging efforts were proposed,
from giving more material aid to the Mexican government to putting further controls on the sale of assault weapons that
often wind up in the hands of traffickers in Mexico.
Mexico Arrests High-Level Sinaloa Cartel Member; Subject To Extradition To U.S.
March 19, 2009
The army and federal agents apprehended the son and reputed lieutenant of Ismael "El Mayo" Zambada, a senior figure in
the Sinaloa drug cartel. Vicente Zambada Niebla "El Vicentillo" and five bodyguards were arrested in the upscale capital
neighborhood of Lomas del Pedregal. Authorities say Vicente Zambada is the head of operations for the Sinaloa cartel,
which is run by his father and by Joaquin "El Chapo" (Shorty) Guzman, who remains at large more than eight years after
escaping from a maximum-security prison. Vicente Zambada was sent to a maximum–security prison near the capital to be
held pending a U.S. extradition request. Mexico grants more extraditions than in the past, but the process can take years
and Zambada could face domestic charges first.
President Calderon: Gulf Cartel Operative Behind U.S. Consulate Attack Arrested
March 20, 2009
President Calderon announced that the army arrested Sigifredo Najera Talamantes a.k.a. "El Canicon," an alleged drug
trafficker suspected of organizing an attack on a U.S. consulate as well as the killing of several soldiers in retaliation for a
government crackdown. Najera Talamantes was arrested in the northern city of Saltillo, and President Calderon said he "is
directly responsible for the torture and execution of nine soldiers and responsible for attacks on the consulate of the U.S.
and Televisa facilities" in the northern city of Monterrey.
Panama Authorities: Country Is "Meeting Spot" For Mexican, Colombian Narcos
March 16, 2009
Rafael Guerrero, Panama’s top anti–drug prosecutor, said that cartels from Mexico and Colombia are increasingly using his
country as a staging area for northbound shipments of cocaine. Guerrero said that the number of Mexican and Colombian
citizens involved in cases of drug trafficking registered in Panama is growing, adding that the country has become the main
logistical point for meetings between those who commit this crime, mainly members of Mexico’s Sinaloa, Gulf and Tijuana
cartels. Guerrero acknowledged that there are many drug routes from Colombia to Mexico and the U.S. that pass through
Panama.
Ciudad Juarez Names Military Personnel To Top Public Security Posts
March 16, 2009
Retired Army General Julian David Rivera Breton was appointed as the Secretary of Public Safety in Ciudad Juarez, in the
state of Chihuahua, and will report to city’s Mayor Jose Reyes Ferriz, who also named infantry colonel Alfonso Cristobal
Garcia Melgar as the city’s new police chief. In addition, the federal government sent Mario Hernandez Escobedo, a
National Defense Ministry (SEDENA) official, to Juarez to serve as the public safety adviser. Reyes Ferriz said all three of
the appointments were needed so that Joint Operations Juarez and Chihuahua can continue. Killings in Juarez appear to
have slowed since more than 6,000 soldiers arrived in the city.
U.S. CBP Says Union Pacific Trains Move Drugs Across Border
March 19, 2009
According to court papers and evidence filed in a dispute between U.S. rail giant Union Pacific and U.S. Customs and
Border Protection (CBP), the firm has transported illegal drugs, virtually all marijuana, aboard trains it leased coming in the
U.S. from Mexico on 58 occasions since late 2001. The U.S. sued Union Pacific in San Diego and Houston, saying it had
failed to prevent the smuggling of illegal drugs by rail into the U.S., including one case involving cocaine. Court filings
indicate that since 2001 Union Pacific has been slapped by the U.S. government with fines totaling just under USD 38
million overall, which are being contested by the firm in a U.S. court in Nebraska.
Case Against X-Caliber Gun Store Owner Dismissed
March 19, 2009
An Arizona court has dismissed the case against the X-Caliber gun store owner who was accused of knowingly selling guns
to traffickers smuggling arms into Mexico for drug traffickers. The trial, which began earlier this month, had been heralded
as an example of U.S. authorities working to stanch the flow of weapons to Mexico, but the case against George Iknadosian
was dismissed. Prosecutors alleged that more than 700 high-powered rifles were sold to purchasers whom Iknadosian
should have known were acting as so-called straw buyers for Mexican customers. Maricopa County Superior Court Judge
Robert Gottsfield ruled that the evidence prosecutors presented was not "material," and therefore did not support charges
against Iknadosian.
Bus Crash Kills 11, Injures 30; Americans, Canadians Among Victims
March 17, 2009
At least 10 people were killed and 30 others injured when a bus collided with a truck in the state of Coahuila. The accident
occurred at kilometer 301 of the Manzanillo–Ciudad Mier highway and involved a bus traveling from McAllen, Texas, to the
northern Mexican state of Zacatecas. The deaths of six men and five women as well as the injuries included seven U.S.
and three Canadian citizens. The injured were taken by helicopter and ambulance to public and private hospitals in Saltillo,
the capital of Coahuila.
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Other
Mexico City: Drainage Repairs To Make It Flood-Free For 50 Years
March 19, 2009
Mexico City announced that it will be flood-free for 50 years following the MXN 1.6 billion refurbishment of its underground
deep drainage tunnel system. Maintenance work on the most damaged stretches of the city’s 165–kilometer (100–mile)
deep drainage network—built in 1975—began last year and will increase the tunnel’s drainage capacity to around 180 cubic
meters per second from 110 cubic meters per second. The construction chief of the Metropolitan Water and Drainage
System (SAS) said the primary damage to the tunnels has been the disappearance of the concrete coating on some
stretches, leaving the underlying steel exposed. The repair work has consisted of laying new steel and concrete and
covering that base structure with a layer that protects it from toxic gases and provides greater hydraulic capacity.
INEGI: Water Availability In Mexico Down 75% In Six Decades
March 21, 2009
According to the National Statistics Institute (INEGI), in just under 60 years, per capita availability of water in Mexico has
fallen by 75%. Two days prior to the celebration of World Water Day, that office said that the country had 18,035 cubic
meters (635,650 cubic feet) of water per Mexican inhabitant per year in 1950 but an annual total of just 4,312 cubic meters
per inhabitant in 2007. It also said that Mexico, a country with almost 107 million inhabitants, has seen its subterranean
water reserves reduced by 6 cubic kilometers (1.4 cubic miles) due to overexploitation of aquifers.
Mexico City Legislators Pass Plastic Bag Ban
March 18, 2009
Mexico City (DF) legislators have approved a bill that would hit store owners or operators with one and a half days in jail
and fines of about USD 77,400 for giving customers plastic bags for their purchases. The bill would exempt biodegradable plastic bags. The bill still must be signed into law by the city’s mayor Marcelo Ebrard. The law would give businesses one
year to adopt appropriate bags. DF legislature cited estimates that the average city resident uses 288 plastic bags per year.
The city’s trash dumps are overflowing, and plastic bags add to street litter.
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