ManattJones Global Strategies
April 6, 2009
News Briefs
March 22 - March 28, 2009
Volume VI, Issue 13

Energy | Trade & Investment | Banking, Insurance & Finance | Business & Industry | Housing & Mortgaging |
Construction & Infrastructure | Retail | Transportation | Telecommunications & Technology | Economy |
Border & Migration | Politics | Justice, Safety & Crime | Sports | Arts & Culture | Other


Energy

CFE Awards USD 16.3 Million Contract To Iberdrola
March 24, 2009
The Federal Electricity Commission (CFE) awarded a USD 16.3 million contract to Spanish energy concern Iberdrola for the construction of an electric substation and an underground 10.9–km–long transmission line in the state of Sonora. Iberdrola, which has built approximately 40 electric substations and 50 transmission lines in Mexico—for a combined length of 1,625 km—said the country is one of the strategic locations featured in its international expansion program.

CFE Says It Is Waiting For Guatemala To Start Electricity Exports
March 25, 2009
The Federal Electricity Commission (CFE) said it is waiting for Guatemala to finish building its section of a power line before it can begin exporting electricity there. CFE has a surplus of electricity and plans to sell at least 120 megawatts to Guatemala's Instituto Nacional de Electrificacion (INDE), but the firm said Guatemala has suffered delays in getting permits for the project, which was originally scheduled to be finished in late 2008. Guatemala's electricity demand is expected to double by 2020, and with nearly 50,000 MW of installed capacity, including 11,500 MW from independent power producers, the CFE has electricity to export.

Itochu Corp. Withdraws From Oil Project In The Gulf Of Mexico
March 26, 2009
Japanese Itochu Corp. announced that it is withdrawing from an oil and gas development program in the Gulf of Mexico after it confirmed that reserves at the oil field Entrada were lower than it had originally estimated. Itochu had suspended the project in 4Q, 2008, which led to a loss of USD 379.6 million in the said period. Itochu does not expect a new loss after the definitive cancellation of the project.

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Trade & Investment

INEGI: Exports Plunge 30% In February On Impacts Of U.S. Recession
March 27, 2009
According to data from the National Statistics Institute (INEGI), exports nose-dived in February by 30% from a year earlier, falling for the fifth straight month. Lower oil prices and a big drop in U.S. demand have caused Mexico's exports to plunge by almost a third so far this year. INEGI said that Mexico ran up a deficit of USD 491 million in March, compared with January's USD 1.56 billion trade gap and a USD 1.08 billion shortfall in February 2008.

SE: Mexico To Lift Tariffs On U.S. Products If Truck Program Is Reestablished
March 24, 2009
The Economy Ministry (SE) said that Mexico would immediately lift recently enacted tariffs on 89 U.S. products if the United States removes a ban on Mexican truckers, as legislators from that country recently canceled funding for a pilot program allowing long–haul trucks from Mexico to circulate throughout the U.S. Mexico says the program was part of the long– standing North American Free Trade Agreement (NAFTA) commitment.

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Banking, Insurance & Finance

Experts: Microfinance Industry Undergoes Shake-Up On Crisis
March 24, 2009
According to experts from the financial sector, Mexico's microfinance industry is undergoing a major shake-up as the global financial crisis spurs banks that had dabbled in the sector in recent years to pull out altogether, at the same time making funding scarce for specialized lenders. As an example, Mexico's fifth–biggest bank Grupo Financiero Banorte is shutting its microfinance arm Creditos Pronegocio, which it launched in 2005, after its losses widened to MXN 120 million last year from MXN 30 million in 2007. Nonetheless, Mexico's biggest microfinance institutions are optimistic they can grow during a recession, as rising unemployment forces many people who once worked in the formal sector of the economy to open small businesses in the shadow economy to make ends meet.

Senate Committees Approve Bill To Limit Bank Fees And Rates
March 26, 2009
The Senate's Finance Commission and the Legislative Studies Commission approved proposals to overhaul financial sector regulations that if passed into law would give authorities greater scope to limit the interest rates and commissions that banks charge their customers. The commissions said they hope to submit a final draft to the full Senate as soon as possible. The measure would then be sent to the Lower House, and the plan would give the Bank of Mexico (Banxico) greater power to regulate commissions and interest rates, ban fees for checking balances at bank branches, and require lenders to offer a basic credit card product without "excessive charges."

Consar: Afores Revert 2008 Negative Results Trend
March 27, 2009
According to pension fund regulator Consar, pension fund managers (Afores) have reverted a negative results trend that persisted in 2008 and succeeded in registering a MXN 44 billion yield in March. Consar's spokespersons said that Afores reported joint assets amounting to MXN 970 billion in March, which is a historic record high for the insurance industry in Mexico. Afores assured their clients do not risk losing any funds, as adjustments in the administration guarantee their savings are protected and since the firms have committed to invest only in Mexican financial assets.

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Business & Industry

CANACERO Steel Production Falls 50%
March 27, 2009
The National Iron and Steel Chamber (CANACERO) said that according to its estimates, Mexico's steel industry production fell by 50% in January when compared to the like 2008 period. CANACERO said that not only steel production but steel prices have suffered a 50% contraction, and added that it is the first such crisis in years for the sector in Mexico. Nevertheless, executives from CANACERO said they expect the government's stimulus plans will boost Mexico's steel industry's activity and expect a rise in production of 1.5 million tons per year.

Gruma Reaches Derivatives Agreement For USD 668 Million
March 26, 2009
Mexican corn flour and tortilla maker Gruma announced it has reached an agreement with foreign creditors Credit Suisse, Deutsche Bank, and JP Morgan Chase to pay USD 668 million in foreign exchange–rate derivatives within 120 days, a period Gruma was awarded to try to obtain a loan equivalent to the mentioned amount. The figure is worth about 87% of Gruma's due to its creditors in the said obligations.

Helvex To Build New USD 20 Million Plant In Mexico
March 25, 2009
Mexican&8211;Swiss home&8211;furniture producer Helvex announced it will invest USD 20 million to build a new tile plant in the state of Guanajuato and that it will compete with peers such as Grupo Lamosa and Vitromex. Helvex's new facility will have installed capacity to produce 150,000 products per month and will start operating in August. The new facility is expected to create as many as 450 new jobs.

Codusa Pitches New Restructuring Plan To Creditors
March 27, 2009
Mexican paper manufacturer Corporacion Durango (Codusa) said it has submitted a new debt restructuring proposal to bond holders that includes issuing new debt and creditors taking an equity stake in the company. Codusa obtained the local equivalent of Chapter 11 in November in order to restructure USD 1.52 billion in debt. Codusa said its financial advisers Rothschild and FTI Consulting have submitted the proposal to bond holders.

BMV Suspends GISSA Listing On Lack Of Information
March 27, 2009
The Mexican Stock Exchange (BMV) has suspended industrial Conglomerate Grupo Industrial Saltillo's (GISSA) listing on lack of information regarding its 2008 results. BMV said that GISSA must submit last year's results if it wants the suspension to be lifted. Sources said that GISSA's financial information at end 2008 is not totally complete, as the firm continues negotiating its financial commitments.

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Housing & Mortgaging

Infonavit Could Restructure 150,000 Mortgage Loans
March 24, 2009
Federal state–run housing fund Infonavit said it estimated that approximately 150,000 debtors will seek to restructure their mortgage loans due to the current global economic crisis. Infonavit said that it has restructured 15,000 mortgage loans so far this year and that a credit dispute–solving pact it signed with Mexico City's Supreme Court will allow debts to be restructured and keep the percentage of overdue notes at 4.5%.

Infonavit Awards 80,000 Credits As Of March, 8% Less Than In 2008
March 24, 2009
Federal state–run housing fund Infonavit said that it has awarded 80,000 mortgage loans so far this year, an amount 8% lower than figures from the same period in 2008 and which indicates the impact of the current global economic downturn in its business. The slowdown in lending as of March is also indicated by a reduction of 20% in the lending growth rate. The amount of credits Infonavit has awarded so far this year is equivalent to 16% of its annual goal, which aims at giving 500,000 mortgages.

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Construction & Infrastructure

ICA Obtains MXN 1.9 Billion Highway Contract
March 24, 2009
Mexican construction concern Empresas ICA announced that the Communications and Transport Ministry (SCT) awarded it a MXN 1.9 billion highway contract in central Mexico. ICA said the contract involves construction and operation of a 21– kilometer bypass, and the upgrading of two stretches of federal highway—one of 39 kilometers and another of 7 kilometers. Construction is expected to take 22 months, and financing for the project will be backed by Banco Santander.

SHCP: Cemex Advances In Resolving Problems; To Sell Buildings To Pay Debt
March 28, 2009
The Finance and Public Credit Ministry (SHCP) said Mexican cement maker Cemex is "advancing well" toward resolving its financial problems, as the firm is dealing with massive debt, the weak U.S. economy, and analysts have warned it could run out of cash by summer if it does not renegotiate millions of dollars in maturing obligations. SHCP said "Cemex is advancing well and will be able to satisfactorily deal with its problems." Meanwhile, the firm announced it will sell 31 buildings and 171 land hectares to pay debt. Cemex expects to receive as much as USD 17.9 million for the assets.

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Retail

INEGI: January Retail Sales Down 4.6% On Year
March 23, 2009
According to the National Statistics Institute (INEGI), Mexico's retail sales fell for a fifth straight month in January, as people continued to feel the effects of the economic downturn and bought fewer durable goods. INEGI said that retail sales fell 4.6% from January 2008, and were down 0.34% from December after seasonal adjustments. INEGI said sales of cars, domestic appliances, clothing and footwear, and stationery were among categories that fell from a year ago, while sales of food and beverages, and health-care products rose.

Creditors Award Comerci More Time To Restructure
March 23, 2009
Mexican retailer Comercial Mexicana (Comerci) said it has reached a new deal with four key U.S. creditors, giving it more time to restructure its defaulted debt. It was the second time in March that the company succeeded in striking a deal with Barclays, Goldman Sachs, JP Morgan, and Merrill Lynch as it attempts to come up with a plan to pay back what it owes them. Both sides agreed to extend talks through April 3. Along with Santander and Citigroup, these banks were involved in derivatives trading that got Comerci into deep financial trouble last year, when the global credit crisis and bad bets on foreign exchange triggered massive losses, bulging its debt. These six banks claim the company owes them USD 2.2 billion, but Comerci acknowledges only half of it.

Gigante To Invest MXN 1.41 Bilion In 2009; To Open 108 Stores
March 27, 2009
Mexican retailer Grupo Gigante said it plans to invest MXN 1.41 billion this year to open 108 new stores as part of a five– year growth strategy. Gigante, which operates Mexican retail chains as well as local Office Depot and RadioShack franchises, sees 2009 sales around MXN 15 billion, compared with MXN 8.39 billion last year. Gigante also expects to add 1,816 employees to its work force this year. This year's investment budget is part of Gigante's new five-year plan to increase sales by 140% and double its workforce, investing around MXN 10 billion in the process.

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Transportation

U.S. Readies New Plan For Mexican Trucks
March 24, 2009
U.S. Transportation Secretary Ray LaHood said a new program to allow Mexican truckers to cross the border will be unveiled "soon," a move that could spur Mexico to rescind tariffs on USD 2.4 billion of American products. LaHood met with legislators in an effort to reach an agreement on a new plan, but it was unclear whether two leading Democratic opponents would lend their support. In a recent spending bill signed by President Barack Obama, Congress shut down a pilot program that allowed some Mexican truckers to operate on American roads. Mexico responded by slapping tariffs on 89 products ranging from wine to Christmas trees.

Protesters Against Increased Fuel Prices Clog Traffic In Mexico City
March 24, 2009
Drivers on board 2,500 trucks and buses demonstrated in three points of Mexico City to demand that Mexican authorities lower the price of diesel. Most of the trucks were parked in the giant Zocalo square, causing huge traffic jams in downtown Mexico City. The truckers also protested outside the Interior Ministry (SEGOB) and the Los Pinos presidential palace. Commercial drivers want the price of diesel lowered from the current MXN 7.68 per liter to MXN 6.10 per liter, the level of June 2008. The drivers said the impact of higher diesel prices is such that outfits providing urban bus service will have to spend an additional MXN 300 million on fuel this year.

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Telecommunications & Technology

Supreme Court Refuses Protection To Mobile Telephony Operators
March 25, 2009
The Supreme Court (SCJN) denied protection to mobile telephony providers that refused to interconnect with other companies as the Communications and Transport Ministry (SCT) had requested. SCJN said that SCT's ruling compelling mobile telephony providers to interconnect their networks is constitutional and empowered the Ministry to set specific obligations for concessionaires using the country's public telecommunications infrastructure. Companies that sought court protection were led by Iusacell.

OECD: Mexican Companies Hampered By Poor Telecoms Services
March 27, 2009
According to the Organization for Economic Co-operation and Development (OECD), Mexican companies are at a competitive disadvantage because of expensive and low–quality telephone and Internet services, and the government should implement network unbundling rules and lift restrictions on foreign investment to boost competition in its telecommunications industry, which is dominated by local billionaire Carlos Slim. OECD added that Mexico could drastically improve its telecommunications by making better use of a government–owned fiber–optic network and opening up the fixed– line sector to foreign investors.

Cable TV Providers Demand That Telmex Be Declared Dominant
March 24, 2009
The Cable Industry Chamber (CANITEC) has demanded that the Federal Competition Commission (CFC) issue a final statement regarding the eventual declaration of telephone giant Telmex's dominance in the market. CANITEC said that should the CFC declare Telmex's dominance, the Federal Telecommunications Commission (Cofetel) could issue regulations preventing Telmex's alleged monopolist practices. CANITEC is also demanding that CFC and Cofetel conclude a probe they launched against Telmex's alliance with satellite TV provider Dish.

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Economy

INEGI: Economy Plummets 9.5% In January
March 27, 2009
According to the National Statistics Institute (INEGI), Mexico's economy plunged in January at its fastest pace since a deep crisis in 1995, battered by a collapse in U.S. demand for its exports and a steep fall in consumer spending. In the latest sign that Mexico is tumbling into recession, the economy shrank at a 9.48% annual rate in January. The service sector, which makes up about 60% of the economy, fell 9.13% during the month.

SHCP: Mexico To Increase Treasury Bills, Bonds Issuance In 2Q
March 26, 2009
The Finance and Public Credit Ministry (SHCP) said the government will increase the amount of bills and bonds that it issues in 2Q. SHCP specified that it will increase by MXN 1 billion to MXN 8 billion the amount of one–month, three–month and six–month bills it will sell each week and raise by MXN 500 million to MXN 7.5 billion the amount of one–year bills to be sold every four weeks. The government also will sell more three–year and ten–year bonds, which are auctioned every four and six weeks, respectively. Auctions of three–year bonds will increase by MXN 500 million to MXN 5 billion, and ten–year bond auctions will rise by MXN 1.5 billion to MXN 4 billion.

Banxico: International Reserves Rise To USD 80.6 Billon
March 24, 2009
The central bank (Banxico) said that international reserves rose by USD 1.29 billion to USD 80.619 billion as inflows from oil sales and interest payments outpaced dollar sales to support the peso. Investors are watching Mexico's reserves closely since Banxico surprised them with initially covert sales of dollars to banks in February to support the peso, which has lost around a third of its value since August. In the week ending March 20, Banxico said it had received USD 1 billion from Pemex and USD 712 million from investments, while it sold USD 400 million in daily dollar auctions.

Analysts: Inflation Slows In Mid-March; Rate Cuts Eyed
March 24, 2009
According to analysts, Mexico's inflation rate slowed in early March as electricity costs fell, possibly giving the central bank (Banxico) more room to cut interest rates in order to boost the flagging economy. Banxico said consumer prices rose 5.98% in the 12 months through March 15, more than analysts had expected but still down from 6.25% in the year through mid– February. Banxico has been lowering borrowing costs since January to help the economy, and the inflation data was seen as making further cuts more likely.

INEGI: February Unemployment Rate Up To 5.3% From 3.9% In 2009
March 24, 2009
According to the National Statistics Institute (INEGI), unemployment in Mexico rose sharply in February from a year earlier as the economic contraction continued to hit the labor market. INEGI said that unemployment last month was 5.3%, compared with 3.9% in February 2008 and 5% in January of this year. Urban unemployment, which measures the jobless rate in 32 major cities, rose to 6.4% from 5% a year earlier, reaching its highest rate since January 1997. Overall unemployment was the highest on record going back to 2000. Half a million formal jobs have been lost since last October.

Former SCT Minister Nominated To Head BMV
March 25, 2009
The controlling shareholders of Mexico's stock exchange Bolsa Mexicana de Valores (BMV) nominated former Communications and Transport Minister Luis Tellez as its president. Tellez, an economist, also served as Energy Minister under President Ernesto Zedillo and was managing director of private equity firm The Carlyle Group's Mexico offices. Tellez stepped down from his SCT post earlier this month following a scandal over recorded personal telephone calls.

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Border & Migration

Human Rights Advocates: Canada Ignoring Refugees Fleeing Mexico's Violence
March 28, 2009
Human rights and refugee advocates said Canada's conservative government is ignoring a dire security crisis that is pushing thousands of Mexicans to seek safety in Canada. The Canada Border Services Agency (CBSA) late last year linked bloody drug cartel wars in Mexico to a sharp hike in the number of refugee claims, more than 8,000 compared with 7,000 the year before. However, Canadian Immigration Minister Jason Kenney said there has been a widespread abuse of the system by relatively well–off Mexicans who take one–way flights to Canada and stay in the country until they are expelled. He said unscrupulous immigration consultants in Mexico and the U.S. are coaching people on how to make a refugee claim in Canada.

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Politics

Hillary Clinton Visits Mexico To Discuss Drug Violence, Economics, Trade
March 25, 2009
U.S. Secretary of State Hillary Clinton was in Mexico for a two–day visit aimed at showing support for President Calderon and his government's crackdown on drug cartels, as well as discussing economic and trade issues. On the eve of the trip, the Obama administration announced new steps to curb border traffic in drugs, illicit money, and weapons. Secretary Clinton will be the first in a parade of senior administration officials to visit Mexico to lay groundwork for President Obama's two–day visit in mid–April for talks with President Calderon.

CAN Aspires To Full Membership For Chile, Mexico, And Panama
March 29, 2009
The Andean Community of Nations (CAN) said it will work for full membership for Chile, Mexico, and Panama. Officials from the organization said they aspire to the consolidation of CAN and the joining of Chile, Panama, and Mexico as full members. Chile was a founding member of CAN in 1969, but it left the organization in 1976 due to incompatibility of its economic policy and the initiatives of Andean integration. Chile is now CAN's associated member together with Argentina, Uruguay, Paraguay, and Brazil. Mexico and Panama are observers. CAN's four current full members are Bolivia, Colombia, Ecuador, and Peru.

Court Exonerates Former President Echeverria For 1968 Massacre
March 27, 2009
An appellate court has ruled that former President Luis Echeverria has been "definitively exonerated" of murder charges arising from the 1968 Tlatelolco massacre. The court upheld a 2007 ruling that the evidence submitted by prosecutors did not prove Echeverria's complicity in the "preparation, conception … execution of genocide." (Under Mexican law, "genocide" can denote instances of mass murder that fall short of the attempted extermination of an ethnic, racial, religious, or other group). In the early evening of October 2, 1968, soldiers and paramilitaries opened fire on a protest in Mexico City's Tlatelolco square.

Mexico's First Female State Governor Passes Away
March 27, 2009
Mexican educator and writer Griselda Alvarez Ponce de Leon, who 30 years ago became the first woman to govern a Mexican state, has passed away at 95. According to her son Miguel Delgado, Alvarez died at home in Mexico City after being bedridden for a number of infirmities associated with her advanced age. Alvarez was elected governor of the small southwestern state of Colima in 1979, running on the joint ticket of the Institutional Revolutionary Party (PRI), which held power at the national level for 71 years—and the Popular Socialist Party. She established several organizations to promote women's rights and the well-being of Mexican families.

PGR: Mayor Freed Without Charges After Arrest
March 26, 2009
The Federal Attorney General's Office (PGR) said Mario Moreno Conrado, a mayor and congressional candidate arrested a month ago on suspicion of heading a kidnapping gang, has been released without charges. Moreno Conrado, who heads the municipal government in Ixtapaluca, in the state of Mexico (Edomex), is running for Congress on the ticket of the leftist PRD party in this year's midterm elections. He was arrested February 23 for allegedly providing protection to the Los Tenientes kidnapping gang in exchange for "large sums of money." Moreno Conrado's detention came a week after authorities dismantled the gang and jailed 12 of its presumed members.

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Justice, Safety & Crime

White House Unveils Anti-Drug Cartel Effort For Mexican Border
March 24, 2009
U.S. Homeland Security Secretary Janet Napolitano and Deputy Attorney General David Ogden announced that the Obama administration plans to send more agents and equipment to the southwestern border to fight Mexican drug cartels and keep violence from spilling over into the U.S. Authorities said that the government's plans include doubling the border enforcement security teams that combine local, state, and federal officers as well as adding new Drug Enforcement Administration (DEA) positions and people from the Bureau of Alcohol, Tobacco, Firearms, and Explosives to the border in the next 45 days. The Obama administration also said it would provide funding amounting to as much as USD 700 million for the program. Mexican Foreign Affairs Minister Patricia Espinosa praised the program and said that it is part of "a new era of cooperation" between the two countries.

Hillary Clinton's Visit To Mexico Centered On Drug War
March 25, 2009
U.S. Secretary of State Hillary Clinton's recent two-day official visit to Mexico was centered on the current drug war. Clinton said the Obama administration acknowledges that the U.S. shares responsibility with Mexico for dealing with the violence and that it vows to work aggressively to reduce drug demand, while seeking to cut off the flow of high–tech weapons from the U.S. that Mexican narcotics gangs are using in their internal wars and in conflict with Mexican authorities. Clinton said at the end of her visit that Mexico will not be able to win its war against drug cartels without support from the U.S. Clinton and Mexican Foreign Affairs Minister Patricia Espinoza announced plans to create an office in Mexico to coordinate joint action against drug trafficking.

Top U.S. Intelligence Official: Mexico Not In Danger Of Collapse
March 26, 2009
U.S. National Intelligence Director Dennis Blair said Mexico is not on the verge of collapse and that it is in no danger of becoming a failed state, despite the spiraling violence. He said the increase in killings in Mexico is a result of President Calderon's administration's crackdown on drug cartels. Meanwhile, Moody's Investors Service said Mexico is not at risk of becoming a "failed state," despite growing drug-related violence. The U.S. Joint Forces Command said recently that Mexico and Pakistan are both at risk of a "rapid and sudden collapse." But Moody's said that was "far-fetched" and added that Mexico was not in danger of losing its investment–grade rating.

Mexico Offers USD 2 Million For Top Drug Lords
March 23, 2009
The government offered USD 2 million each for information leading to the arrest of 37 top drug lords in a public challenge to the cartels' violent grip on the country. The list indicated that drug gangs have splintered into six main cartels under pressure from the U.S. and Mexican governments. The two most powerful gangs, the Pacific and Gulf cartels, each suffered fractures that have given rise to new cartels, according to the list published by the Attorney General's Office (PGR). The list offers USD 2 million in rewards for 24 top members of the cartels and USD 1 million for 13 of their lieutenants.

Court Overturns Governor's Drug Conviction
March 27, 2009
An appellate court has thrown out the June 2008 verdict that imposed a nearly 37–year prison sentence on Mario Villanueva, the former governor of the state of Quintano Roo, for drug trafficking and abetting criminal activity. Mario Villanueva had been detained in 2001 and given a six–year prison sentence on lesser charges, which he completed in 2007. But he was immediately rearrested pursuant to a U.S. request for his extradition on accusations of money laundering and drug smuggling. The judge that sentenced Villanueva said that he was part of a cell of the Juarez drug cartel operating between Chetumal, the capital of Quintana Roo, and the Caribbean tourist mecca of Cancun.

Mexico Captures One Of 37 Most-Wanted Traffickers
March 25, 2009
Soldiers captured Hector Huerta Rios aka "El Junior" or "La Burra," one of Mexico's most–wanted drug smugglers and a presumed leader of the Beltran Leyva cartel in the northern city of Monterrey. Authorities announced the arrest of Hector Huerta Rios just hours before U.S. Secretary of State Hillary Clinton arrived for a two–day visit to discuss security issues and U.S. support for Mexico's battle against the drug cartels.

U.S. Gun Control Debate Does Not Appear To Be Going Forward
March 24, 2009
Analysts said that despite concern among U.S. Congressmen regarding the surge in Mexican drug violence and its potential to spill across the border, gun control solutions do not seem to be going forward. When U.S. Attorney General Eric Holder suggested reinstituting a U.S. ban on the sale of certain semiautomatic weapons, many lawmakers balked. The 1994 ban expired after ten years. The U.S. State Department said that firearms obtained in the U.S. account for an estimated 95% of Mexico's drug–related killings. Yet 65 Democrats said in a letter to Holder that they would oppose any attempt by the administration to revive a ban on military–style weapons.

Authorities: Nearly 1,500 Have Died In 2009 Mexican Violence
March 24, 2009
Authorities said that 1,500 people have died in drug-related violence so far this year. Local press reported that drug– and gang–related crimes have skyrocketed in recent years, going from about 1,500 in 2006 to 2,700 in 2007 and 5,630 last year. Media firms said that in less than three months this year, the death toll is already 1,482.

SEDENA: Army Seizes Record 9.4 Tons Of Crystal Meth
March 24, 2009
The National Defense Ministry (SEDENA) said that the army seized 9.4 tons of the synthetic drug known as crystal meth from a clandestine lab, the largest amount of the substance ever confiscated in the country. The consignment was valued at MXN 1.5 billion and was seized from a laboratory in the southern state of Michoacan, between the towns of San Jose de Chila and Acatlan in the municipality of Apatzingan. The synthetic drug was found in 464 bags and weighed a total of 8,545 kilos (9.4 tons).

U.S. Authorities: Drug Cartels Also Smuggle People Across Border
March 23, 2009
U.S. law enforcement officials and other experts said Mexican drug cartels and their vast network of associates have branched out from their traditional business of narcotics trafficking and are now playing a central role in the multibillion– dollar–a–year business of illegal immigrant smuggling. U.S. efforts to stop the cartels have been stymied by a shortage of money and the failure of federal law enforcement agencies to collaborate effectively with each other, their local and state counterparts, and the Mexican government.

Officials Destroy Death Saint Revered By Criminals
March 25, 2009
Officials in Nuevo Laredo, in the state of Tamaulipas, have destroyed more than 35 statues dedicated to a "Death Saint" popular with drug traffickers. The statues, most depicting a robe–covered skeleton resembling the Grim Reaper, lined highways and roads in and around the city. One of the statues was located at the base of an international bridge linking Mexico and the U.S. Soldiers stood guard as city workers were seen taking down the sculptures. Leaders of Mexico's "Death Saint" church are protesting the destruction of the shrines and said it was an act of religious discrimination and demanded to meet President Calderon.

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Sports

Mexican Boxing Champion Passes Away, President Calderon Regrets Death
March 24, 2009
Mexican boxing champion during the fifties Raul "Raton" Macias passed away at 74 due to cancer. President Calderon regretted the death of Macias and said that he was a great champion and that in his time he represented the winning Mexico. Calderon gave his condolences to Macias' family in a memorial event held in the Los Pinos presidential residence.

Mexico Beats Costa Rica 2–0
March 28, 2009
Mexico lifted the pressure on coach Sven–Goran Eriksson by beating Costa Rica 2–0 in a World Cup qualifier. Striker Omar Bravo, previously overlooked by Eriksson, opened the scoring in the 20th minute and captain Pavel Pardo celebrated his 146th appearance by winning and converting a penalty early in the second half. The defeat was Costa Rica's first in 12 outings under coach Rodrigo Kenton and a blow to their chances of a third successive World Cup appearance. Mexico picked up their first three points in the final stage of the CONCACAF qualifiers.

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Arts & Culture

Botero Exhibits Works On Violence In Mexico
March 29, 2009
An exhibit with 50 works by Colombian artist Fernando Botero dealing with the phenomenon of violence was inaugurated at a museum in the state of Veracruz. Entitled "El Dolor de Colombia" (The Pain of Colombia), the exposition features 23 oils and 27 drawings, which opened to the public and will run for the next three months at the Pinacoteca Diego Rivera in the city of Xalapa, 300 kilometers (186 miles) from the Mexican capital. The exhibit belongs to the collection of the National Museum of Colombia.

Artists Ask Calderon To Stop Violence Against Women In Chihuahua
March 27, 2009
Rock legend Peter Gabriel, actor Diego Luna, Mexican band Jaguares' Saul Hernandez, and Patricia Cervantes, the mother of Neyra Cervantes, who disappeared and was murdered in 2003, met with President Calderon to urge him to increase his efforts to end the violence and murders of women in Ciudad Juarez and Chihuahua, in the state of the same name. During the meeting, President Calderon suggested that participating NGOs provide him with a list of priorities related to feminicide and that authorities meet with these NGOs periodically to review progress on these issues. Within the confines of legal proceedings, he also committed to make this process transparent to the general public.

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Other

Mexico City Joins "Earth Hour"
March 26, 2009
Mexico City joined more than 2,400 cities from 82 countries in "Earth Hour" to boost global awareness of climate change. The "Earth Hour" was set to turn off lights for one hour in public and private houses and buildings from 8:30 p.m. to 9:30 p. m. local time in each country. The initiative was launched in Sydney, Australia, in 2007, when two million people joined the activity. The event grew so much in 2008 that it gathered 400 cities and 50 million people. Mexico City's Mayor Marcelo Ebrard turned off the lights of the Constitution Square, the ancient Town Hall palace, and Metropolitan Cathedral. The lights of other landmark architectures in the city were also turned off.

Researchers: Corn Domesticating Process Over 8,700 Years Old
March 23, 2009
According to information from an international research team, biological evidence indicated that corn was domesticated over 8,700 years ago from its predecessor, in the Balsas River Valley, in central Mexico. The new discovery, announced by Temple University in Philadelphia, provides the most ancient date yet established for corn domestication.

Fire Destroys Over 500 Vehicles In Mexico City
March 23, 2009
At least 500 vehicles were destroyed in a fire in a depository of cars located in Mexico City. The fire began when peasants burned dry grasses in abandoned lots near the depository. The fire spread to the vehicles. In addition, high temperatures caused some fuel tanks to burn. The damaged vehicles were patrol cars and police cranes, which were parked in the place at the moment of the fire.

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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

AFP, Associated Press, Calibre Macroworld, Canada Newswire, The Canadian Press, Comisión Federal de Competencia, Companies' Press Releases, Compranet, La Crónica, Diario Oficial de la Federación, Dow Jones Newswires, El Economista, EFE, Excelsior, Exonline, Federal Information & News Dispatch, El Financiero, The Houston Chronicle, La Jornada, McClatchy, Milenio, The New York Times, Notimex, Presidencia de la República, Reforma, Reuters, El Semanario, Stock Exchange Announcements, Tribune Business News, United Press International, El Universal, Voice Of America, The Wall Street Journal, The Washington Post, 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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