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Energy
Pemex Awards USD 646 Million Contract To Weatherford International
March 30, 2009
Pemex Exploracion y Produccion (PEP) announced it awarded a USD 646 million drilling contract to the Mexican
subsidiary of Houston–based oil firm Weatherford International to drill 500 wells at the Chicontepec oil field.
Weatherford beat bids from six other companies for the contract, which begins in April and will run through 2012. The
contract is part of a larger PEP exploration program at Chicontepec that runs through 2012.
Pemex Sells MXN 10 Billion In Bonds, Demand Strong
April 1, 2009
Pemex announced it sold a MXN 10 billion bond to help finance an aggressive investment program. The bond has
two series: one for three years and the other for seven years. The three–year bond will have a floating rate of 100
basis points over the benchmark TIIE rate and the seven–year bond will have a fixed rate of 9.15%. Demand reached
MXN 24.7 billion, more than double the amount offered. A fund manager said local pension funds were the main
buyers. Pemex needs to sell important amounts of capital in foreign and local debt this year to help pay for its
ambitious USD 20 billion investment program.
SHCP: Pemex Starts Scaling Back 2009 Oil–Production Target
April 2, 2009
According to a document sent to Congress by the Finance and Public Credit Ministry (SHCP), Mexico has begun the
process of trimming its annual oil production target as the large Cantarell oil field continues to lose ground. SHCP
pruned its 2009 target by 30,000 barrels a day (b/d) to 2.72 million b/d. In 2008, average production closed at 2.79
million b/d, 310,000 b/d below the original budget projection. The average for the first two months of 2009 was
already below target at 2.68 million b/d. SHCP expects oil revenue to fall 12.7% in 2010 due to lower prices,
production, and exports.
CFE To Import Coal; Signs Supply Agreement With Local Producers
March 29, 2009
The Federal Electricity Commission (CFE) said it will purchase coal from five foreign producers for approximately
USD 1.2 billion during the next four years. CFE said the coal will supply the Petacalco electric generation plant in the
state of Guerrero. The companies that will sell coal to CFE are RWE Supply & Trading, Noble Resource, Soluciones
Petronavales, Vitol, and Glencore International. Coal will be produced at mines in Australia, Colombia, Indonesia,
South Africa, and Canada. CFE said savings from the agreement will amount to USD 80 million. In addition, CFE
signed long-term supply agreements with Mexican coal producers from the state of Coahuila.
Slim Bids For Works At Chicontepec
April 2, 2009
According to the federal procurement website Compranet, Mexican billionaire Carlos Slim's oil firm Servicios
Integrales GSM submitted bids for drilling 170 wells at the Chicontepec basin despite declining production at the field.
Results on the tender will be published later this month. Sources indicate that GSM would not require foreign
equipment to drill the wells, reducing its operation costs.
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Mining
U.S. Court Rules GMex Must Pay USD 6.3 Billion To Asarco
April 2, 2009
A U.S. district court in Brownsville, Texas, has ruled that Mexican miner Grupo Mexico (GMex) must pay a USD 6.3
billion indemnity to bankrupt subsidiary Asarco for allegedly providing fraudulent and misleading information regarding some assets in Peru. The indemnity includes returning GMex's Southern Copper Peru's shares to Asarco, which are
valued at USD 4.7 billion, and approximately USD 2 billion in dividends plus interests. Meanwhile, GMex said it plans
to appeal the ruling, as it considers it to be erroneous and contradictory. GMex said that even if it is forced, after
appeal, to surrender the shares to Asarco, it will continue to own 80% of Southern Copper.
GMex Requests Permission To Close Cananea Mine
April 1, 2009
Mexican miner Grupo Mexico (GMex) announced it requested permission from the Labor Ministry (STPS) to definitely
close its Cananea copper mine in the state of Sonora and lay off over 1,000 workers, as they have been on strike for
20 months, led by the National Mining And Metal Workers Union's (SNTMMSRM) exiled president Napoleon Gomez
Urrutia. GMex said that certain articles of Labor Law would allow it to fire the striking workers when the mine's
operation capacity proves to be damaged.
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Trade & Investment
President Calderon Urges U.S. To Resist Temptation Of Protectionism
March 30, 2009
President Calderon urged the U.S. to avoid raising new barriers to international trade, arguing that a resurgence of
global protectionism will only make the world economic crisis worse. Calderon said that "putting up trade barriers,
which is a big temptation in all economies (…) would worsen the crisis." Calderon added that "if the United States falls
into that temptation to raise new barriers to international trade, including barriers for Mexico, it will (…) make it harder
to emerge from the crisis."
Senate Approves Mexico–China Investment Promotion Agreement
March 31, 2009
The Senate has approved an agreement between Mexico and China to boost investment. The pact, which was signed
in Beijing on July 11, 2008, was approved with 72 votes in favor and 11 against. The Senate said the document will
be sent to President Calderon to be signed into law. Officials said the agreement seeks to create better conditions for
China–Mexico mutual investment and commercial cooperation.
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Banking, Insurance & Finance
Mexico To Take IMF, U.S. Federal Reserve Credit Lines
April 1, 2009
President Calderon said Mexico plans to activate a credit line of between USD 30 billion and USD 40 billion with the
International Monetary Fund (IMF). It would be the first time in nearly a decade that Mexico would borrow from the
IMF. Speaking in London at the G20 summit, Calderon said Mexico would be willing to take advantage of new
changes in the IMF's loan programs, namely, a flexible credit line designed to help fundamentally solid developing
countries cope with temporary financial strains. In addition, Mexico plans to activate the first part of a USD 30 million
swap line with the U.S. Federal Reserve this month to ease lending for companies strapped with debts taken out in
dollars. The U.S. Federal Reserve last year offered USD 30 billion in credit to the central banks of Mexico, Korea,
Brazil, and Singapore.
Banorte Completes Acquisition Of U.S. INB Bank
April 2, 2009
Mexican bank Grupo Financiero Banorte said it completed its acquisition of the 30% stake it did not already own in
U.S.–based Inter National Bank (INB) for USD 146.6 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 Pushes For Lower Commissions
April 2, 2009
Pension regulator Consar said it wants to see further reductions in the commissions that pension fund companies
(Afores) charge for managing retirement savings, which could put greater financial pressure on an industry already
suffering from declining profits. Under regulations that took effect in January, Afores have to submit their proposed
commissions for the following year to Consar's board of directors for approval. Consar's board, which includes
representatives from labor, business, and the government, ordered that commissions for 2009 be set below last
year's average.
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Business & Industry
Nestle To Enhance Chiapas Facility
April 2, 2009
French foodmaker Nestle announced it will destine as much as USD 100 million to enhance its Chiapa de Corzo
facility, in the state of Chiapas. Nestle said the facility produces coffee cream and that works, to start in October, will
create over 25,000 indirect jobs. The plant is expected to generate sales surpassing MXN 1 billion and will supply the
Central American, South American, and Caribbean markets.
Genomma Lab Acquires Medicinas Y Medicamentos Nacionales
April 1, 2009
Mexican over–the–counter pharmaceuticals and personal care products maker Genomma Lab announced it will
acquire a 100% stake in Mexican medicine manufacturer Medicinas y Medicamentos Nacionales. Through this new
subsidiary, Genomma Lab will sell new product lines within the categories of analgesics, cold remedies, antifungal,
anti–inflammatory, expectorants, and multivitamins, among others. Genomma Lab expects to launch the products
applying Genomma's characteristic marketing and sales capabilities of its business model.
Sanofi–Aventis Acquires Laboratorios Kendrick
April 2, 2009
French pharmaceutical company Sanofi–Aventis said it has acquired Mexican generic company Laboratorios
Kendrick for an undisclosed amount. Sanofi–Aventis said the acquisition is designed to accelerate sales growth and
further extend its pharmaceutical portfolio in emerging markets. Kendrick's sales in 2008 amounted to approximately
EUR 26 million and the firm has a 15% market share in Mexico's generic niche.
Vitro Refinances Debt Backed By Trade Receivables
April 2, 2009
Mexican glassmaker Vitro said it has refinanced debt backed by trade receivables at two of its units. Vitro said that a
senior tranche, for USD 40 million, is funded by Mexican bank Ixe Grupo Financiero and will provide its glass
containers division with liquidity to continue operations. A subordinate USD 19 million tranche is funded by
multinational investors, which were not identified. Vitro defaulted on debt earlier this year and is in negotiations with
creditors.
Grupo Modelo Lays Off 1,200 Workers At Mexico City Plant
March 31, 2009
Mexican brewer Grupo Modelo (GModelo) announced it will lay off 1,200 workers at its Mexico City facilities due to
the negative impacts from the current economic crisis. GModelo's top executives have said that approximately 3% of
the firm's workers will lose their jobs this year.
ArcelorMittal Lays Off 400 Employees In Mexico
March 30, 2009
Global steelmaker ArcelorMittal announced that it laid off 10% of its Mexico workforce (or 400 employees) as demand
for its products fell. The job cuts were for the facilities located at the port of Lazaro Cardenas, in the state of
Michoacan. In November 2008, ArcelorMittal announced it would cut 3% of its worldwide jobs or about 9,000
employees, as it sought to reduce costs by as much as USD 1 billion.
BSN Medical Closes Down Miramar Plant, Transfers Production To Mexico
April 1, 2009
German medicine manufacturer BSN Medical announced it will close down its facility in Miramar, Florida, and will
transfer production to the Mexican city of Reynosa, in the state of Tamaulipas. BSN Medical said that most of its
orthopedic gear production will be moved to Reynosa. Last year health care and beauty products maker Johnson &
Johnson announced it would shut its Florida plant and reassign production to the Mexican city of Ciudad Juarez, in
the state of Chihuahua.
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Automotive
Honda Announces Technical Stoppages Between May And September
March 31, 2009
Japanese automaker Honda announced technical stoppages at its El Salto facility, in the state of Jalisco, that are
scheduled to take place between May and September this year. Honda said it planned 13 days for the stoppages,
which will be distributed between the mentioned months. Models that will cease to be assembled are the CRV and the
MUV. Honda said the stoppages will help it reduce stock and cushion the reduction in U.S. demand.
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Housing & Mortgaging
CAM Acquires CI, Seeks To Place MXN 4.5 Billion In Mortgage Loans
April 2, 2009
Spanish mortgage lender Caja Mediterraneo (CAM) announced it acquired Mexican multiple purpose nonbank
finance company (Sofom) Credito Inmobiliario for MXN 2.7 billion as part of an international expansion program. In
addition, CAM said it is seeking to place MXN 4.5 billion in mortgage loans in Mexico in the next 12 months, of which
50% would be individual loans and 50% bridge loans.
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Construction & Infrastructure
SCT Relaunches FARAC II Road Tender Package
April 2, 2009
The Communications and Transport Ministry (SCT) announced that it will launch a reduced version of the second
offering of the Fund For The Rescue Of Highway Concessions (FARAC) as all bids were below reference prices. The
new FARAC II or Pacific Package includes two roads and one beltway in the state of Sinaloa and three roads and one
beltway in the state of Baja California Sur.
Conagua To Seek Bids For New Sewage Plant
April 2, 2009
The National Water Commission (Conagua) expects to begin seeking bids this month for a multibillion–peso sewage
treatment plant north of Mexico City, as it seeks to bring the capital's sewage treatment rate up to 100%. Conagua
said the plant will be designed to treat 23 of the 40 cubic meters of wastewater that the city emits every second into
the Mezquital Valley. The plant will be located in the town of Atotonilco, in the state of Hidalgo, and was originally
intended to cost around MXN 8 billion but its cost will probably be between 30% and 35% higher due to a sharp
devaluation of the peso.
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Retail
Comerci Loses MXN 4.2 Billion In Derivatives In 4Q 2008
March 30, 2009
Mexican retailer Comercial Mexicana (Comerci) announced it had a net loss of MXN 4.2 billion in derivatives in 4Q
2008, down from the MXN 1.1 billion profits it registered in the like–2007 period. Comerci's 2008 results indicate that
due to an unfavorable 4Q, the annual accumulated loss amounted to MXN 7.3 billion, while in 2007 Comerci
registered annual accumulated profits amounting to MXN 2.5 billion.
Comerci Meets Expansion Targets Despite Debt Problems
March 31, 2009
Mexican retailer Comercial Mexicana (Comerci) announced it met its expansion targets for 2008 and specified it
opened 21 stores and restaurants under different brands and acquired the Beer Factory restaurant chain. The
establishments were opened and will operate under the Comercial Mexicana, Mega, Alprecio, City Market, Costco
and California brands. Comerci said that investment in capital goods last year amounted to MXN 4.9 billion.
Wal–Mart Has Opened 14 Out Of 252 New Stores Scheduled For 2009
April 2, 2009
Retailer Wal–Mart de Mexico announced that so far this year, it has opened 14 of the 252 stores it planned to
inaugurate throughout the country, and noted that its MXN 12.5 billion investment plans for 2009 remain unchanged.
Seven of the 14 stores were opened in the state of Jalisco, creating 600 new jobs there.
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Transportation
Rolls–Royce, Mexicana Sign USD 350 Million Maintenance Agreement
April 5, 2009
Rolls–Royce car producer and Mexican airline Mexicana de Aviacion announced they signed a USD 350 million
agreement by means of which Rolls–Royce will provide maintenance to Mexicana's low–cost division Click's airplane
engines. Under the agreement, Rolls–Royce's Total Care maintenance service will be repairing and monitoring the
situation of 25 Boeing 717–200 aircrafts.
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Telecommunications & Technology
OECD: Mexican Internet Tariffs Are 450% Higher Than In Italy
March 30, 2009
According to the Organization for Economic Co-operation and Development (OECD), Mexican Internet tariffs are
450% higher than in Italy. OECD said that a 2 Megabyte per second (mbps) service in Mexico costs approximately
USD 55, while it costs only about USD 10 in Italy. In addition, OECD said that Mexico is among the member states
with the lowest broadband penetration and one of the most expensive and limited services.
Samsung To Invest MXN 1.5 Billion In Queretaro
April 3, 2009
Korean electronics manufacturer Samsung announced it will invest over MXN 1.5 billion to broaden its Queretaro
facility, in the state of the same name. The investment in the refrigerator producing plant, which is located in the city's
industrial park, is expected to create approximately 1,000 direct jobs.
SCT–Telmex Agreement Ends, SCT Signs Contract With Telecomm Telegrafos
April 3, 2009
The Communications and Transport Ministry (SCT) announced a contract it had signed with Telmex for the e-Mexico
digital connectivity project has ended and said it entered into a new agreement with state–run Telecomm Telegrafos,
as the latter's offer allows SCT to save 75% of its budget for the project. SCT said it expects Telmex will continue to
provide certain such services to some operators that offer Internet and other telecomm features to governmental
institutions and social welfare centers.
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Media & Entertainment
Televisa, Univision To Continue Settling Disputes Over Programming Rights
March 31, 2009
Mexican broadcaster Televisa and U.S. peer Univision said they will continue settling disputes over programming
rights and will start a new trial in a U.S. court in upcoming weeks. The dispute over programming rights for Internet
content will be a new episode of a yearlong conflict between the two companies, which reached an agreement in
January over a program licensing pact and settled a related lawsuit. As part of the January settlement, Univision
agreed to pay Televisa USD 25 million in disputed royalties and increase the license fees paid to Televisa under its
existing deal. In exchange, Televisa affirmed its commitment to continue to provide telenovelas exclusively to
Univision through 2017.
Radio Centro Signs Programming Agreement With Emmis Communications
April 3, 2009
Mexican radio broadcaster Grupo Radio Centro said it has signed an agreement with U.S. Emmis Communications to
provide programming for and eventually buy the KMVN–FM station in Los Angeles. Radio Centro said it will provide
programming and sell advertising time on the station under the local marketing agreement. It will pay Emmis USD 7
million a year, including an upfront payment of USD 14 million to cover the first two years. Radio Centro also entered
into a seven-year option to buy KMVN–FM assets for USD 110 million. Radio Centro can exercise the option at any
time in the next seven years, while Emmis can exercise its option to sell to Radio Centro in the seventh year.
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Farming & Agriculture
CAN: Farming Companies Lose MXN 65.8 Million In Grain Theft In A Year
April 2, 2009
According to the National Farming Counsel (CAN), merchandise theft has caused losses of MXN 65.8 million to
companies from the sector in the past year. CAN said the average grain theft has increased dramatically, and
companies such as Cargill noted that "normal" amounts of stolen grains used to total about 90 tons per year but that
in 2008, 1,000 tons of grains were stolen, mostly when transported by train. Figures indicated that in January 2009
alone, thieves took away 2,000 tons of white corn.
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Economy
INEGI: Manufacturing Jobs Down 6.6% In January As Output Slides
March 30, 2009
According to the National Statistics Institute (INEGI), Mexico's manufacturing sector shed jobs for the 18th straight month in January as industry output took a nosedive. INEGI said that manufacturing employment fell 6.6% from
January 2008, and slipped 1.02% from December in seasonally adjusted terms. Manufacturing was the hardest–hit
sector with output plunging 14.9%. INEGI reported job losses during January in all categories except food and
beverages, where employment was unchanged from the year-ago month. Assembly of transport equipment saw the
most job losses, with 16.7% fewer workers than a year ago.
SHCP: February Budget Surplus Reaches MXN 10.96 Billion
March 31, 2009
The Finance and Public Credit Ministry (SHCP) said the government posted a fiscal surplus of MXN 10.96 billion in
February, but specified that it ran an accumulated deficit of MXN 8.1 billion in the first two months of the year. SHCP
added that the government plans to run a deficit this year equivalent to 1.8% of gross domestic product in order to
boost the flagging economy.
SHCP: January–February Government Spending Up 7%
March 30, 2009
The Finance and Public Credit Ministry (SHCP) said the government's spending rose during the first two months of
this year despite a drop in revenue, indicating that the effects of President Calderon's economic stimulus measures
are starting to show themselves. In January and February, public spending hit MXN 447 billion, up 7% from MXN 418
billion during the first two months of 2008. SHCP said the largest spending increases were in areas such as energy,
transportation, health care, agriculture, and education projects.
SHCP: Mexico Expects 2.8% Contraction In GDP This Year
March 30, 2009
The Finance and Public Credit Ministry (SHCP) said Mexico's gross domestic product (GDP) will shrink 2.8% this
year, largely due to the recession in the United States, Mexico's main trading partner. SHCP also said investment
could fall 8.4% and consumption may decline 2.2%. Mexico's economy shrank 9.5% in January and the country's
industrial output slumped 11%.
Government Tax Collections Shrink On Economic Crisis
March 30, 2009
The Finance and Public Credit Ministry (SHCP) said tax collections between January and February shrank to MXN
8.06 billion as the current global economic downturn affects taxpayers' purchase power. Collections from the Value
Added Tax (VAT) were the most hurt by the economic crisis and fell by 21.9% during the mentioned period.
Banxico: Remittances Fall 3% In February
April 1, 2009
The central bank (Banxico) said that the money Mexicans living abroad sent home fell 3% in February when
compared to the same month last year. Even so, the drop was lower than in January, when remittances were down
12% when compared to a year ago. Analysts say remittances have been dropping due to the U.S. recession and a
crackdown on illegal immigration that has stemmed migrant flows. Banxico reported that Mexicans sent back USD 1.8
billion in February, up from USD 1.5 billion in January.
Analysts, Traders: Stocks, Currency Extend Rally On G20, Bank Optimism
April 2, 2009
According to analysts and traders, Mexico's stocks and currency rallied as investors cheered new U.S. accounting
rules that will make it easier for banks to value illiquid assets on their balance sheets and pledges by the G20 nations
to reignite global growth. Mexico's IPC index of most–traded issues rose 3.4%, or 682.22 points, to 20,562.59, its
highest closing level since early January. Volume was heavy at 436.2 million shares, worth MXN 7.69 billion.
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Politics
President Calderon, UK Prime Minister Brown Meet Ahead Of G20 Summit
March 30, 2009
President Calderon and UK Prime Minister Gordon Brown met ahead of the G20 summit of leading and developing
economies in London and committed to a coordinated response with other nations to restore growth. The two leaders
said after the meeting that they "commit to a continued effort to ensure a swift and strong recovery, stimulating our
economies in the most effective ways possible in co-ordination with other key economies across the globe." They
recognized that such interventions should promote job creation, protect the interests of taxpayers and savers, and
avoid undermining the principles of free trade and open markets. The two also said they wanted to see a commitment
made by global policymakers in Washington in November not to raise any new trade barriers reaffirmed and
strengthened at the G20 summit.
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Justice, Safety & Crime
President Calderon Rules Out Joint Raids With The U.S.
March 30, 2009
President Calderon said during the G20 summit in London that he has ruled out joint military action with the U.S.
aimed at stemming drug cartel violence along the border, but called for closer cooperation between the two nations.
Calderon said he wants the U.S. to share intelligence on drugs traffickers and help Mexican law enforcement by
providing high–tech surveillance equipment. He urged U.S. President Barack Obama to do more to reduce demand in
the U.S. for drugs produced in Mexico and to stop the flow of powerful weapons over the border.
Top U.S., Mexico Officials Meet To Talk About Drug Cartels
April 2, 2009
U.S. Homeland Security Secretary Janet Napolitano and Attorney General Eric Holder met Mexican Federal Attorney
General Eduardo Medina Mora and Interior Minister Fernando Gomez–Mont in Cuernavaca, in the Mexican state of
Morelos, to discuss joint measures to address the drug trafficking problem that is affecting both countries. The
centerpiece issue of the visit was the new U.S. pledge to help stem the flow of guns and other high-powered weapons
into Mexico, but officials said details of the agreements were not finished and that further meetings are needed.
Officials said they were looking at ways to improve cooperation in investigating and prosecuting gun smugglers, to
upgrade shared fingerprint databases and to increase inspections of vehicles coming into Mexico. More agreements
are expected later in April with U.S. President Barack Obama's visit to Mexico.
Barack Obama: President Calderon Is Mexican "Eliot Ness"
March 30, 2009
U.S. President Barack Obama, in an apparent gesture to soften a series of declarations made by both Mexican and
U.S. officials regarding Mexico's drug war, said that President Calderon has bravely faced drug traffickers in Mexico,
just as Eliot Ness did in Chicago against the Italian Mafia during the prohibition period. Obama said the increase in
violence is a sign that President Calderon's strategy has hit severely drug traffickers' operations and cartel structures.
U.S., Mexico To Spend Millions To Beef Up U.S.–Mexico Border
April 1, 2009
The Obama administration plans to spend more than USD 400 million to upgrade ports of entry and surveillance
technologies to help thwart drugs and arms smuggling along the U.S–Mexico border. Homeland Security Secretary
Janet Napolitano said that the projects will help keep violence from spilling across the border. Meanwhile, Mexican
Federal Attorney General Eduardo Medina Mora announced that Mexico will also invest millions of dollars to slow
weapons smuggling and for surveillance along the border with the U.S. Medina Mora said the decisions were made
after the first Bi-National meeting on drug trafficking.
U.S. Senate Holds Hearing In Texas On Mexico Drug Violence
March 30, 2009
Members of the U.S. Senate Committee on Foreign Relations held hearings in Texas on the need to strengthen the
war on drug consumption and arms trafficking in the United States, as well as on corruption among Mexican security
forces. In a hearing at the University of Texas, El Paso, that included high–level federal and local officials, committee
chairman John Kerry said that the fight against Mexican cartels must begin by stopping drug consumption in the U.S.
U.S. congressmen also stressed that Mexico is not a failed nation, echoing the statement made by Secretary of State
Hillary Clinton on her visit to Mexico. Law enforcers said at the hearing that the U.S. does not need to send troops to
the border in response to Mexico's drug war, nor is Mexico in danger of becoming a failed state.
Authorities Arrest Top Drug Cartel Leader Amado Carrillo Fuentes' Son
April 3, 2009
Authorities announced that they captured Vicente Carrillo Leyva, a suspected high-ranking member of the Juarez
drug cartel and son of deceased kingpin and cartel founder Amado Carrillo Fuentes aka "Lord of the Skies." Carrillo
Leyva's arrest came as he was exercising in a park in an exclusive Mexico City suburb. The capture of Vicente
Carrillo Leyva was the fourth major drug arrest in recent weeks. The government put rewards of up to USD 2 million
for information leading to the capture of 37 alleged leaders of the cartels. Carrillo Leyva had a USD 2 million reward
on his head.
Authorities: Gang Sold Stolen Pemex Oil To U.S. Refineries
April 1, 2009
Police in the state of Tamaulipas announced that they caught a gang that allegedly stole oil from Pemex pipelines and
smuggled it across the border to sell it to U.S. refineries. Federal police commissioner Rodrigo Esparza said the gang
made protection payments to the Gulf drug cartel and its Zeta hitmen wing. The U.S. refineries that bought the oil
were not identified. Prosecutors said they froze 149 bank accounts and detected bank transfers of over USD 46
million related to the scheme, in which the oil was smuggled across the border in tanker trucks with false import
documents.
SSPF Announces "Super-Maximum" Security Prisons
March 30, 2009
The Federal Public Security Ministry (SSPF) announced the opening of a "super–maximum" security prison in the
state of Veracruz to hold Mexico's most dangerous criminals. SSPF also said that another such prison will be built in
the northwestern state of Sinaloa, which will feature a special section for kidnappers. Further details on the prisons
were not provided.
Senate Approves Property Seizure Law
April 2, 2009
The Senate unanimously approved legislation that would allow the government to seize property from suspected drug
traffickers and other criminals before they are convicted. Under existing laws, suspects must first be convicted before
their property can be seized and trials often last years in Mexico. The new law allows prosecutors to ask a judge for a
seizure order before the end of the trial. The law covers property bought with income from, or used in connection with,
organized crime, drug trafficking, kidnapping, human trafficking, or vehicle theft. No compensation would be paid for
any property seized.
Court Sentences Five To Almost 1,000 Years In Prison
March 31, 2009
A court has handed down prison sentences of almost 1,000 years each against five men convicted of robbing 18
customers at a Mexico City restaurant in October and holding them hostage. The sentences of 998 and a half years
each are largely symbolic because the maximum prison terms in Mexico for such crimes are about 60 years and
multiple sentences are served concurrently. Prosecutors said the men will also have to pay fines of over MXN 1.4
million apiece. A woman was sentenced to 759 years in 2008 for killing 16 elderly women in Mexico City.
SEMAR: Nearly Seven Tons Of Cocaine Destroyed In Mexico
March 30, 2009
The Navy Ministry said that officers set on fire nearly seven tons of cocaine in the southern state of Oaxaca. The
6,887 kg drugs were destroyed in the facilities of the Naval Zone 12 in the port of Salina Cruz. The cocaine had been
seized in February in international waters, when five people were transporting it in a Mexico–flagged fishing vessel.
Mexico has launched coordinated operations with other countries to fight drug trafficking.
Coparmex: Mexican Businessmen Flee To U.S. To Avoid Crime
April 1, 2009
The president of the Employers Confederation of the Mexican Republic (Coparmex) said "a significant number" of
fellow businessmen working along the U.S.–Mexican border have transferred their offices to U.S. cities to escape a
wave of crime and extortion threats in Mexico. Coparmex president said business owners in the border cities of
Tijuana and Ciudad Juarez have moved their operations to San Diego, California, and to El Paso, Texas. Coparmex
added that extortionists have demanded payments from businesses in the region ranging from small shops to much
larger firms.
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Health & Science
Lower House's Health Commission Approves Fewer Laws As Conflicts Emerge
April 1, 2009
Legislators in the Lower House's Health Commission only approved certain changes to the Biotechnologics Law and
left discussions for other legislation unconcluded as they failed to reach agreements regarding extensions for the
registry renewal period of the medicines. The direness of the disagreements led legislators from four opposition
parties to demand the resignation of the commission's president, who belongs to the National Action Party (PAN).
Naturalized Mexican Physicist Marcos Moshinsky Passes Away
April 3, 2009
Physicist Marcos Moshinsky, 1988 recipient of Spain's Prince of Asturias prize for scientific research, passed away in
Mexico City at 88. Born to a Jewish couple that emigrated from Ukraine when he was 3 years old, Moshinsky became
a Mexican citizen in 1942. In 1981 the Economic Culture Fund (FCE) published "On the Einstein Centennial" in which
Moshinsky compiled a series of essays by distinguished scientists honoring Albert Einstein. Moshinsky graduated
from Princeton University, was professor at the Autonomous National University of Mexico (UNAM) and in 1968 was
awarded the National Arts and Sciences Prize.
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Sports
Honduras Defeats Mexico 3–1; Mexico's Coach Eriksson Is Fired
April 2, 2009
Honduras National Soccer Team player Carlo Costly scored a goal in each half to lead his team to a 3–1 win over
Mexico in CONCACAF World Cup qualifying. Costly opened the scoring in the 17th minute after outmaneuvering
defender Leobardo Lopez, and sealed the win in the 79th minute on a pass from Danilo Turcio. Substitute Nery
Castillo scored Mexico's only goal on a penalty in the 81st minute. The defeat led to the dismissal of Mexico's
National Soccer Team coach Sven-Göran Eriksson.
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Arts & Culture
Experts Detect Apparent Frida Kahlo Fakes
April 1, 2009
Mexican experts said that five paintings purportedly made by Mexican artist Frida Kahlo are apparently fakes. The
paintings surfaced recently in a private collection in western Mexico. The director of three Mexico City museums
devoted to the works of Kahlo and her husband Diego Rivera said in a sarcastic way that "Frida is producing more
after death than when she was alive." Experts Carlos Phillips and Josefina Garcia said the judgment is not definitive,
but the size, brushwork and other characteristics do not match up. The collector could not be reached. Other faked
Kahlo paintings have surfaced since her death.
The Desert Within Earns Eight Mexican Film Awards
April 1, 2009
Desierto adentro (The Desert Within), a film by Mexican–based Uruguayan director Rodrigo Pla, was awarded eight
prizes at the Mexican Academy of Film Arts and Sciences award ceremony. Pla's film won prizes—known as Ariels
and considered the Mexican equivalent of the Oscars—for best actor, best special effects, best visual effects, best
sound, best original score, best photography, best original screenplay and best supporting actor. Arrancame la vida
(Tear this Heart Out), one of the biggest box office hits last year in Mexico, won four awards.
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Storms Force Authorities To Close Two Ports, Damage 150 Houses In Mexico
March 30, 2009
Officials said that two powerful storms associated with a cold front forced the closing of two ports and damaged 150
houses in the state of Veracruz. Winds and waves caused extensive damage in 20 cities along the coast of Veracruz.
The phenomenon forced the closing of the port of Tuxpan to small vessels and the port of Veracruz, one of Mexico's
largest, to all shipping. Some 300 people in the city of Sayula de Aleman had to go to shelters when the strong winds
ripped the roofs off of 50 houses.
Xcaret Ecological Park To Set Record For Turtle Hatchings
April 4, 2009
Mexico's biggest private ecological park, Xcaret Park, will set a record this year with 2,000 baby turtles hatched there
as part of a successful program of breeding and releasing the endangered marine creatures. Located some 60
kilometers (37 miles) south of the city of Cancun on the Mexican Caribbean, the Mexican company began in 1993 its
so–called Initiation Program, which consists of maintaining for 15 months two nesting sites for turtles in captivity,
which are then released into the sea after receiving special care and feeding by a specialized team of veterinarians.
Xcaret Park sets free about 200 turtles that on the average are 30 centimeters (1 foot) long and therefore have a
greater chance of surviving the predators lying in wait for them.
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