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Energy
Pemex Maintains 2009 Capex Target, Cuts Oil Output Goal
July 30, 2009
Pemex announced plans to stick to its USD 20 billion investment target for this year to help stabilize falling oil
production and said it has already raised about USD 7 billion in financing so far in 2009 to fund investments. Pemex
added that it revised its production target to 2.65 million barrels a day (b/d), down from earlier estimates of 2.75
million b/d. The number still assumes rising output during 2H, which would reverse a five-year trend. Oil production
averaged 2.63 million b/d in 1H and has been below 2.65 million b/d since March. The main concern for Pemex is the
former largest oil field, Cantarell, where output was down 37% on year and 5% on month to 658,700 b/d in June.
Pemex: Lower Oil Sales Reduce Its Quarterly Profit
July 28, 2009
Pemex reported that lower crude oil prices and export volumes reduced its sales and lowered its profits. Pemex
posted a net profit of MXN 1.2 billion, down 93% from MXN 16.7 billion a year earlier, as revenue slid 30% to MXN
259.5 billion. Mexican crude oil output fell below 2.6 million barrels per day (b/d) in June for the first time since 1990,
down 11.1% year-on-year, and June oil exports were down 12.7%. Oil export revenue has also been dented by a
drop in oil prices, and Pemex’s contributions to public finances during 1H fell 56% to MXN 311.2 billion.
Senate: One Clandestine Fuel Extraction Spot Discovered Daily
July 30, 2009
According to Gustavo Madero, head of the Senate, authorities have reported the discovery of a clandestine fuel
extraction spot or device connected to Pemex’s pipelines every day during the past three years, which has caused
losses of approximately MXN 10 billion. Meanwhile, Pemex announced that the federal government broke up a
money laundering ring whose operations amounted to about MXN 750 million and USD 46 million and which had links
with U.S. groups. Further details about the group were not provided. Pemex said that felons extract crude oil and
send it to concealed refineries and that it is later distributed at gas stations colluding with the robberies. Distributors
and gas station personnel collaborate through the use of bogus tankers and fake invoices.
PGR; SFP Joint Operation Leads To Arrest Of 36 Pemex Officials Linked To Fuel Theft
July 30, 2009
A joint operation launched by the Federal Attorney General’s Office (PGR) and the Ministry of the Public Function
(SFP) at Pemex’s Mexico City headquarters was concluded with the arrest of 36 officials working at the company on
charges of collusion with crude oil and fuel-theft rings. Authorities entered the firm’s headquarters and investigated
files, documents, PCs and other evidence at Pemex’s Physical Security Management office. In addition, retired army
general Miguel Estrada Martinez, who coordinated the mentioned Pemex office, was detained and taken into custody
at the Deputy Attorney General’s Office for Specialized Investigation into Organized Crime (SIEDO).
CFE’s Net Profit Increases 27.4% In 1H
July 30, 2009
The Federal Electricity Commission (CFE) reported a 1H net profit raise of 27.4%, or MXN 2.7 billion, when compared
to the like-2008 period. CFE also reported a MXN 599 million income hike despite a 16% drop in its revenue from
electricity sales. CFE said its favorable profit results followed positive exchange rates applied to its sales.
Pemex Issues "Clean Fuels Project" Tender
July 30, 2009
Pemex announced that it published in the Official Gazette (DOF) an international tender for the third and last package
of the construction of the plants forming the "Clean Fuels Project." Pemex said the project aims at improving air
quality by producing fuels with lower levels of sulfur.
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Trade & Investment
SHCP: FDI To Fall 30% In 2009
August 1, 2009
According to the Finance and Public Credit Ministry (SHCP), Foreign Direct Investment (FDI) to Mexico might fall by
as much as 30% by the end of the year to between USD 13 billion and USD 14 billion when compared to the USD 18
billion that was reported in 2008.
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Banking, Insurance & Finance
CNSF: 1H Insurance Sector Premiums Rise 8.8% To MXN 120.75 Billion
July 30, 2009
According to the National Commission for Insurance and Finance (CNSF), Mexico's insurance industry grew its direct
premiums 8.8% year-on-year to MXN 120.75 billion in 1H 2009. Premiums from property and casualty policies rose
53.5% to MXN 29.77 billion, largely due to Pemex, while auto insurance premiums fell 9.4% to MXN 23.13 billion as
the recession slashes new vehicle sales. Accident and health insurance premiums were nearly unchanged at MXN
16.41 billion, annuity premiums rose 6.1% to MXN 4.06 billion, and life insurance premiums grew 3.5% to MXN 47.38
billion.
OECD: Mexico May Need To Cut Rates Further
July 30, 2009
According to the Organization for Economic Cooperation and Development (OECD), Mexico's economy may benefit
from further interest rate cuts despite signals from the central bank (Banxico) that it has finished easing monetary
policy for now. According to OECD forecasts, Mexico—whose fate is tightly linked to its neighbor, the United States—
is on track for its worst recession since the Great Depression of the 1930s. OECD predicts Mexico's economy will
shrink 8% this year, burdened by a dramatic fall in exports and weighed down further by an outbreak of a new strain
of influenza that effectively shut down the country in early May.
PRI, PAN Will Seek To Allow Banxico To Regulate Sofoles, Sofomes
July 27, 2009
The Institutional Revolutionary Party (PRI)—which won the majority of the votes in the latest midterm congressional
elections—and the ruling National Action Party (PAN) vowed to conclude a banking reform in the following ordinary
sessions’ period. The reform includes allowing the central bank (Banxico) to regulate the commissions that singlepurpose
financial entities (Sofoles) and multiple purpose nonbank finance companies (Sofomes) can charge their
clients.
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Business & Industry
INEGI: Mexican Manufacturing Employment Down 8.9% On Year In May
July 30, 2009
According to the National Statistics Institute (INEGI), Mexican manufacturers laid off more workers in May as the
recession continued to pressure the industrial sector. INEGI said employment in manufacturing was down 8.9% from
the year-ago month, and fell 1% from April in seasonally adjusted terms. Hours worked in the sector fell 13% from
May 2008, and were 3.4% lower than in April, affected by technical work stoppages by companies hit by falling
demand for their products. Manufacturing output has fallen every month for the past 10 months, and was down 15%
in the first five months of this year from the comparable 2008 period.
NAFIN Concludes Program To Support Emerging Firms Affected By A/H1N1
July 30, 2009
Mexican development bank Nacional Financiera (NAFIN) announced that it concluded its support program for
companies that were affected by the A/H1N1 influenza virus outbreak. NAFIN said it destined approximately MXN 9.4
billion through commercial banks to help nearly 21,000 Mexican companies. Credits were for as much as MXN 2
million.
DF Ranks 32nd Among Mexican States In Easiness To Start A Business
July 27, 2009
According to the World Bank’s (WB) Doing Business 2009 report, Mexico City—or the Federal District (DF)—ranked
last among Mexico’s 32 states in providing easy and hasty procedures to start a business. The WB said the DF had
occupied the 10th spot in 2007 but that it fell in the ranking due to excessive procedures and corruption in the city’s
administration.
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Automotive
Bosch Service Centers In Mexico To Amount To 500 Within Next Six Years
July 27, 2009
German auto parts manufacturer Robert Bosch announced that it will open over 400 new service centers in Mexico
within the next six years, ending its program in 2015 with a total of 500 facilities. Bosch, which already operates 70
automotive service centers in Mexico, expects to create approximately 5,000 jobs with the new plants. The project will
employ transformation of some centers, technologic adaptation and personnel training. Bosch added that the centers
network will be built through concessions awarded to small repair shops.
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Housing & Mortgaging
Home Builders Thrive In Mexico On Support For Low-Income Housing
July 28, 2009
According to experts and analysts from the housing industry, a countercyclical push by the government to make
600,000 home loans this year through federal housing funds Infonavit and Fovissste has helped builders of lowincome
homes be among the market's best performers in recent months. Mexico’s two largest companies,
Corporacion Geo and Desarrolladora Homex, each sell about 93% of their homes on Infonavit or Fovissste mortgage
loans; Geo sold 14,357 homes in 2Q, up 10% from the year-ago period. Revenue rose 8% to MXN 4.99 billion, and
net profit was up 6.1% at MXN 458.6 million. Meanwhile, Homex reported an 11% increase in 2Q home sales to
14,928 units, with revenue up 7.9% to MXN 4.73 billion. Net profit fell 7.7% to MXN 666.5 million due to a drop in
operating income and a financial loss.
Homebuilder Javer Sells USD 180 Million In Bonds
July 30, 2009
Mexican homebuilder Servicios Corporativos Javer announced that it sold its first ever dollar-denominated bonds,
generating modest demand for the high-yield securities. Executives close to the operation said order books on the
USD 180 million in five-year bonds reached USD 250 million. The bond pays a yield of 13%, which helped draw
emerging-market debt as well as high-yield investors. Javer said it will use the proceeds from the offer to refinance
local debt. Bank of America Merrill Lynch and Credit Suisse were the brokers on the deal, which is rated Ba3 by
Moody's Investors Service and BB- by Fitch Ratings.
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Construction & Infrastructure
Cemex 2Q Profit Down 58%
July 28, 2009
Mexican cement maker Cemex reported a 58% drop in 2Q net profit to USD 187 million. Cemex said revenue in the
quarter dropped 34% while earnings before interest, taxes, depreciation and amortization (EBITDA) slid 41% to USD
812 million, the worst results posted by the company in the last ten years. Cemex lowered its expectation for 2009
EBITDA to USD 3.1 billion from USD 3.3 billion as a result of continued economic weakness in its main markets.
Cemex also said it expects its free cash flow to be USD 1.6 billion this year, down from its previous estimate of USD
1.7 billion.
Cemex Says It Is Backed By 90% Of Creditors
July 29, 2009
Mexican cement maker Cemex said its debt restructuring plan to pay USD 14.5 billion starting February 2011 has
been approved and supported by 90% of its creditors; Cemex noted, however, that it needs the plan to be backed by
100% of its creditor banks. Meanwhile, the firm said that lenders granted it an extension on a USD 1.2 billion shortterm
debt due July 31 as part of negotiations to refinance the total USD 14.5 billion out to 2014.
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Retail
Soriana Net Profit Up 76% In 2Q
July 27, 2009
Mexican retailer Organizacion Soriana reported that its 2Q net profit grew 76% to MXN 883.5 million when compared
to the like-2008 period due to an efficient expenditures plan it implemented and as it succeeded to improve marginal results. Soriana added that earnings before interest, taxes, depreciation and amortization (EBITDA) increased 6%
and that operative profit was up 7% during 2Q.
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Transportation
New Mexican Truck Plan Welcomed By U.S. Businesses
July 27, 2009
According to the U.S. National Association of Manufacturers, which has advocated for the North American Free Trade
Agreement's program to let Mexican trucks into the United States a new plan containing guidelines on getting
Mexican trucks back on U.S. highways has gone through bureaucratic review, the first step toward ending Mexican
tariffs on USD 2.4 billion worth of U.S. goods. Implementing the plan would quell growing dissent among U.S.
businesses that are hurt by Mexico's tariffs and that continue to besiege Washington with claims that doing nothing
will result in job losses. The tariffs were imposed by Mexico as retaliation for U.S. legislation enacted in March that
took Mexican trucks off American highways.
SCT Awards MXN 3 Billion For Mexico City’s Subway Line 12
July 27, 2009
The federal government has signed an agreement with Mexico City’s administration by means of which the
Communications and Transport Ministry (SCT) will award MXN 3 billion for the construction of the city’s 24.5km
subway line, Line12, running from Mixcoac through Tlahuac. The funds provided by SCT represent 17.1% of the
project’s total cost. The new line is expected to transport 131 million users per year.
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Telecommunications & Technology
Mobile Operators: Wireless Subscribers Reach 80.41 Million At End Of June
July 30, 2009
According to data from Mexico’s four mobile phone companies, the country’s wireless subscribers rose 9.6% year-onyear
to 80.41 million at the end of June. The companies added 1 million new subscribers during 2Q, compared with
2.4 million in the same period of 2008. Telcel’s subscriber base grew 9.9% on the year to 58.08 million and its market
share was nearly unchanged at 72.2%; Movistar increased its client base 13% to 15.94 million at the end of June.
The company's market share rose to 19.8% from 19.2% a year earlier. Grupo Iusacell saw its subscriber base fall
10.5% to 3.55 million and its market share slipped to 4.4% from the 5.4% it had at the end of June 2008. Nextel
Mexico grew 16.4% to 2.84 million clients.
Telmex Acknowledges Losses Resulting From Skype’s Penetration In Mexico
July 28, 2009
Telmex Internacional (Telint) said that its operations have been affected by global VoIP service provider Skype’s
penetration in Mexico, mostly in the long-distance calls’ sector, which accounts for the majority of Telint’s revenue. It
is the first time a Latin American Telco acknowledged the power of Skype as a competitor in the long-distance calls
market. Telint—which also operates in Brazil, Chile, Peru, Colombia, Ecuador, Argentina and the United States—was
spun off from its former parent company, Telmex, last June. Telint also reported that 2Q net profit increased 126% to
MXN 2.6 billion when compared to the like-2008 period.
CANITEC: Telmex’s High Prices Prevent Expansion Of Internet In Mexico
July 28, 2009
According to the National Cable Television Industry Chamber (CANITEC), the high prices Telmex charges to provide
computers and Internet services have slowed down the penetration and expansion of such technology in Mexico.
CANITEC said the Internet incursion rate in Mexico is 7%, as high costs and slow connectivity prevent the country
from having an infrastructure comparable to that of the U.S., Europe or Asia. CANITEC said official data indicated that
25.7% of Mexican households have a computer and only 13.5% have access to the Internet, while Telmex
spokespeople have said that over 90% of Mexicans with a new-generation PC or laptop are connected to the Internet.
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Media & Entertainment
Televisa To Launch New Pay-TV Channel For Telemundo
July 30, 2009
Mexican media conglomerate Grupo Televisa announced that it signed an agreement with U.S. Spanish-language
broadcaster Telemundo awarding the latter its own television channel in Mexico starting August 1. The channel will be
available on Televisa's pay-TV networks, with eight-hour programming blocks repeated three times a day.
Telemundo, a subsidiary of General Electric, is the world's second-largest producer of Spanish-language TV
programming, after Televisa. It expects the new channel to reach 2 million households in Mexico and an additional 1
million in the rest of Latin America by the end of the year.
Cable TV Providers Report Favorable 2Q Results
July 28, 2009
Mexican cable TV operators have reported favorable results during 2Q, indicating that the sector has been able to
thrive amid the global economic downturn. Media conglomerate Televisa said that its pay-TV subsidiaries jointly
reported a 37.5% sales increase during the period. Meanwhile, the largest Televisa competitor, Megacable, reported
a 19% revenue increase in 2Q, when compared to 2008.
TV Azteca Fined MXN 22 Million On Refusal To Broadcast Political Spots
July 28, 2009
The Federal Electoral Institute (IFE) fined Mexican broadcaster TV Azteca MXN 22 million, as the company refused to
transmit 5,734 political spots on open TV that it was required to air by law during the latest electoral campaigns for the
2009 midterm elections. IFE had originally planned to fine TV Azteca MXN 62 million, which would have been the
largest fine ever imposed by the Institute, but agreed to lower it to MXN 22 million.
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Farming & Agriculture
U.S. ASA: U.S., Mexico Need To Smooth Sweetener Trade
August 2, 2009
According to U.S. American Sugar Alliance (ASA) official Jack Roney, the U.S. and Mexico must eliminate possible
distortions in sweetener trade between them caused by the North American Free Trade Agreement (NAFTA), under
which they both can transport unlimited amounts of sugar to one another. Roney said there is a need for both nations
to develop and share data so they can "anticipate each country's needs and avoid a disaster." Last year the U.S.
relied heavily on Mexico to meet a shortage of the sweetener, especially after a sugar refinery in Georgia reduced
available supply by up to a month.
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Hospitality & Tourism
Mexico City Launches Free Health Insurance For Tourists
July 28, 2009
Mexico City launched a new program to provide health insurance to national and foreign tourists in a bid to attract
new visitors to the city after it was hit by the recent A/H1N1 influenza virus outbreak. Mexico City’s government said
Spanish insurer Mapfre will be in charge of the medical and legal emergencies. In some cases tourists might have to
pay a deductible charge in order to be covered.
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Economy
President Calderon: Worst Of Crisis Likely Over; Banxico: GDP To Fall 7.5%
July 30, 2009
President Calderon said that the worst of the economic crisis is probably over and that a "modest and incipient"
recovery is likely in the second half of the year. Calderon said that with gross domestic product expected to have
contracted by 9% or more in the first half of the year, the central bank's (Banxico) projection of a decline of between
6.5% and 7.5% for the full year suggests an improvement in the second half. Nevertheless, Calderon specified that
even with the dire numbers and the "dramatic" figures presented by Banxico, "the worst of the economic crisis
probably passed in the first half." Calderon said the counter-cyclical spending measures adopted by his administration
mitigated the negative effects of the recession, which hit the manufacturing sector particularly hard.
INEGI: May IGAE Economic Activity Indicator Down 11.1% On Year
July 28, 2009
According to the National Statistics Institute (INEGI), its IGAE indicator of economic activity, which measures most of
gross domestic product (GDP), fell 11.1% from the year-ago month and was down 0.99% from April in seasonally
adjusted terms, mostly due to government measures taken to confront the A/H1N1 influenza outbreak.
IADB Approves USD 3 Billion Loan For Mexico
July 30, 2009
The Inter-American Development Bank (IADB) announced the approval of a USD 3 billion credit to Mexico to support the country’s social development, housing sector, education and agriculture. The funds will be employed through
governmental development programs Oportunidades and Procampo, among others.
SHCP: Mexico Registers MXN 94.62 Billion Fiscal Deficit In 1H 2009
July 30, 2009
The Finance and Public Credit Ministry (SHCP) announced that Mexico ran up a fiscal deficit of MXN 94.62 billion in
1H 2009, as the government increased spending to counter an economic contraction, while revenue fell. SHCP said
revenue was down 7.8% from 1H 2008 to MXN 1.332 trillion on less income from oil and lower tax collections as a
result of the recession. GDP fell 8.2% in 1Q from the same period the year before, and SHCP added that it expects
GDP to have contracted 10.4% in 2Q. SHCP said contributions at the end of 2009 are expected to be negative and
the country might report a total fiscal deficit of MXN 268 billion.
Banxico: Remittances Fall 15.1% In June
July 29, 2009
According to the central bank (Banxico), the amount of cash sent home by Mexican migrants living abroad fell 15.07%
in June from the same month last year. Remittances—sent mainly from the U.S. —totaled USD 1.923 billion in the
said month. The drop was less than the record year-over-year slide of nearly 20% in May, as some analysts said the
pace of the U.S. recession was easing. Remittances began declining last year for the first time on record, falling
sharply in April and May. Remittances are expected to remain weak in 2009 as the U.S. slowdown hurts sectors like
construction, where many migrants work.
SHCP: Mexico’s Country Risk Keeps Declining; Falls To 192 BP
July 29, 2009
The Finance and Public Credit Ministry (SHCP) said that Mexico’s country risk continues falling and that it stood at
192 basis points (BP) at last record, down 20 BP from the 212 BP reported on July 17. SHCP noted that Mexico’s
country risk has kept declining steadily for the past two weeks. The country risk measures an emerging state’s public
debt yield with regard to the U.S.’s, which is considered "risk free."
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Border & Migration
BBVA-Bancomer: U.S. Recession Leaves 400,000 Mexican Migrants Unemployed
July 28, 2009
According to a study by Spanish-Mexican bank BBVA-Bancomer, the U.S. economic recession led during 1H to the
layoff of approximately 400,000 Mexican immigrants working in the U.S. BBVA-Bancomer said the most affected
employees belonged to the construction and manufacturing sectors, which have been hit harder by the economic
downturn. The construction sector, in which, according to the study, 1 out of every 4 workers is Mexican, reported
344,000 layoffs. Another study, by the Economic Politics Institute (EPI), indicated that unemployment among
Hispanics in California has surpassed that of African-Americans, reaching rates of 15.7% and 15.3%, respectively.
Legislators: Anti-Mexican Racist Groups In The U.S. Increase By 54%
July 27, 2009
According to a report by legislators from the Lower House’s Immigration Sub-Committee, anti-Mexican and anti-Latino
racist groups in the U.S. have increased by 54% in the last years. Lawmakers proposed to strengthen consular
protection to Mexicans living north of the border. The congressmen said the groups are formed by regular civilians but
also by police, immigration authorities, sheriffs and sometimes judges.
ACLU: U.S. Immigrant Detention Centers’ Personnel Violate Human Rights
July 28, 2009
According to a study by the American Civil Liberties Union (ACLU), the National Immigration Law Center (NILC) and
the Holland and Knight law firm, immigrants sent to U.S. detention centers constantly experience systematic abuse
and violations to their human rights by the centers’ authorities and personnel. The report "A Broken System:
Confidential Reports Reveal Failures in U.S. Immigrant Detention Centers" is based on confidential information from
the U.S. Immigration and Customs Enforcement (ICE), the American Bar Association (ABA) and the United Nations
Refugee Agency (UNHCR), among others.
Quebec Objects To Ottawa’s Decision To Impose Visa Requirement On Mexicans
July 28, 2009
According to official communiques, the government of the Canadian province of Quebec, Canada, sent a letter to the
country’s Immigration Minister Jason Kenney to protest the negative effects to result from imposing a visa
requirement on Mexicans. Officials said the missive was signed by Quebec’s Immigration, Foreign Affairs, Tourism
and Interior Ministers, Yolande James, Pierre Arcand, Nicole Menard and Claude Bechard, respectively.
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Politics
President Calderon Announces Issuance Of Citizens National Identity Card
July 29, 2009
President Calderon announced that Mexico will start issuing nationwide biometric identity cards for its citizens this
year, and added that his administration estimates that all Mexicans will have one by 2012. The cards will carry the
bearer's photograph, information on fingerprints and biometric data, including facial and iris, scans on a magnetic
strip. Most Mexicans currently use their voter ID cards for identification. Those cards contain a photo, signature and
one fingerprint, and they will continue to be issued. The announcement has been received differently among Mexican
NGO’s, political parties, governmental agencies and the people, which have expressed either support or discontent.
The new ID is expected to cost some MXN 3 billion.
President Calderon Attends Tuxtla Summit In Costa Rica
July 28, 2009
President Calderon traveled to Costa Rica to participate in the 11th Tuxtla’s Dialogue and Agreement Mechanism
Summit of presidents and heads of state of Central America, Colombia, the Dominican Republic and Mexico. During
the event, President Calderon said he believes the "Agreement of San Jose," which calls for the pacific
reestablishment of order in Honduras, is a very sensible and accurate proposal. In the "Agreement of San Jose,"
Costa Rican President Oscar Arias proposed the return of Manuel Zelaya to power, and amnesty for the political
crimes committed before and after the coup of June 28.
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Justice, Safety & Crime
Calderon's U.S.-Backed War Against Drug Cartels Losing Political Support
July 28, 2009
According to analysts and some political leaders, President Calderon is under growing pressure to overhaul a U.S.-
backed antinarcotics strategy that seems to be failing amid spectacular drug cartel assaults against the government.
There are now sustained calls in Mexico for a change in tactics, even from allies within Calderon's political party, who
say the deployment of 45,000 soldiers to fight the cartels is a flawed plan that relies too heavily on the blunt force of
the military to stem soaring violence and lawlessness. Experts said that while violence is sharply down in Colombia,
cocaine production is up, and that Mexico, nearly twice Colombia's size, faces a more daunting challenge because it
sits adjacent to the U.S., the largest illegal drug market in the world. In addition, at least seven major cartels are able
to recruit from Mexico's swelling ranks of impoverished youth and thousands of disenfranchised soldiers and police
officers.
President Calderon, U.S. Drug Czar Meet In Mexico City
July 27, 2009
President Calderon and Gil Kerlikowske, head of the U.S. Office of National Drug Control Policy (ONDCP), met at
President Calderon’s official residence of Los Pinos in Mexico City to discuss a joint fight against drug trafficking and
arms smuggling. For his part, President Calderon vowed to continue cracking down on criminal organizations. In the
meantime, Kerlikowske said he will adopt a "wait-and-see attitude" on a new Mexican drug law that many see as
effectively decriminalizing the possession of small amounts of drugs, including marijuana, cocaine and heroin.
President Calderon has proposed requiring mandatory treatment for those caught with "personal-use" amounts of
drugs. But a bill approved by Mexico's Congress before it recessed in late April recommends voluntary treatment
programs. Mandatory treatment would not kick in until a third offense.
DEA Urges Calderon To Deliver Decisive Blow To Cartels
July 27, 2009
The U.S. Drug Enforcement Administration (DEA) said President Calderon’s crackdown on drug cartels is the correct
strategy to employ to fight criminal organizations but urged him to deliver a decisive blow to the drug rings in order to
secure public support and recover credibility. DEA said such a plan cannot maintain support for long periods if
important results are not achieved within a rather short time frame.
National Defense Minister Travels To The U.S. To Strengthen Cooperation
July 28, 2009
National Defense Minister General Guillermo Galvan traveled to the U.S. to strengthen the security cooperation and
coordination ties between the two countries. During his visit, Galvan met with U.S. counterpart Robert Gates and with
the Department of Homeland Security (DHS) Secretary Janet Napolitano to discuss bilateral security matters, mostly
drug trafficking and terrorism.
NDIC: Drug Cartels Make, Launder And Repatriate As Much As USD 39 Billion
July 28, 2009
According to data from the U.S. National Drug Intelligence Center (NDIC), Mexican and Colombian drug cartels’
revenue amounts to between USD 18 billion and USD 39 billion, which they later launder and repatriate, as their
profits come mostly from operations in the U.S. Information on the matter used by the NDIC report was also employed by the U.S. Office of National Drug Control Policy’s (ONDCP) National Southwest Border Counternarcotics Strategy.
President Calderon: Local Governments Must Fight Kidnappings In Their States
July 31, 2009
President Calderon said that his administration will continue supporting the fight against kidnappers in Mexico but
specified that local governments are responsible for addressing such crimes. Calderon praised the recent arrest of
kidnappers responsible for the abduction and murder of two teenagers, whose parents are prominent governmental
and entrepreneurial figures, and also the dismantling of over 70 kidnapping rings in the past years.
July 2009 Is Most Violent Month Since 2006; 1H Death Toll At 4,000
July 31, 2009
According to media and newspapers’ tallies, July surpassed June as the most violent month since President Calderon
took office in December 2006, with 854 drug-related murders. The figure takes the total death toll for 2009 to 4,300,
up from the 2,651 executions reported in 1H 2008 and the 1,672 in 2007.
SAGARPA: PROCAMPO Financed Drug Traffickers
July 31, 2009
According to records from the Agriculture, Livestock and Rural Development Ministry (SAGARPA), a government
welfare program to support Mexico’s countryside Procampo has provided financial support to the Sinaloa, Juarez,
Gulf and Milenio drug cartels and their relatives. SAGARPA-added funds from the program have been misused to
sponsor former and current federal and local officials, as well as leaders of agroindustrial organizations. Procampo
was originally created to support Mexican farmers in the phase after the North American Free Trade Agreement
(NAFTA). SAGARPA announced that it launched a program to recover transparency in Procampo.
Mexico Participates For The First Time In DHS NLE/09 Antiterrorist Exercise
July 29, 2009
Mexico was among the four nations to participate in the five-day National Level Exercise 2009 (NLE 09), the first
national-level exercise to focus on terrorism prevention in conjunction with federal, state, local, private-sector and
international partners, which was launched by the U.S. Department of Homeland Security (DHS).
PGR Launches Pilot Rehabilitation Program For Addicts With Minor Offenses
July 28, 2009
Federal Attorney General Eduardo Medina-Mora announced a pilot program that would create special drug courts
that would send addicts who commit minor offenses to rehabilitation clinics rather than to prison. Medina-Mora made
the announcement after meeting with U.S. drug czar Gil Kerlikowske, who was on an official visit to Mexico City and
who praised the initiative.
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Other
Researchers Succeed In Breeding Endemic Maya Octopus
July 27, 2009
According to specialists, Mexican researchers have succeeded in breeding the endemic Octopus Maya mollusk
species in captivity, producing as many as 50,000 baby octopuses per month. The satisfactory results of the project,
in the charge of the Moluscos del Mayab cooperative in Sisal, in the state of Yucatan, could lead to the creation of the
first Octopus Maya, or "Red Octopus" and "Four-eyed Octopus," farm in the world by 2010. Experts said it would be
an important step in the worldwide fishing sector.
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