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Energy
SHCP: Oil Output Could Drop 4.9% In 2010; Budget To Be Lowered
August 11, 2009
According to the Finance and Public Credit Ministry (SHCP), Mexico's oil output may fall as much as 4.9% in 2010
and continue dropping through 2012. SHCP added that the budget proposal for 2010 will probably include estimated
oil production of 2.5 million barrels per day (b/d), with an average export price of USD 53 a barrel, which will likely
lead to a budget deficit next year, as lower production and prices will represent a revenue shortage of around USD 23
billion. In 2008, oil revenues accounted for 38% of Mexico's budget.
Pemex Elects Hidalgo To Host New Refinery
August 12, 2009
Pemex announced that it elected the state of Hidalgo to host a new refinery, the first major hurdle for the USD 9
billion project. Pemex said Hidalgo completed all the requirements to guarantee judicial security for land ownership for
the refinery. Pemex had required Hidalgo to purchase all the land needed for the facility before approving the project,
a move designed to protect Pemex from any potential land disputes. The State of Guanajuato was also competing for
the project, but Hidalgo obtained the land first. The 300,000-barrel-a-day refinery will take at least five years to build.
Pemex already operates the Tula refinery in the area, and the new plant will use some of the existing infrastructure. In
Guanajuato, Pemex plans to invest USD 3.1 billion to expand the Salamanca refinery.
Officials Skeptical On Chicontepec Oil Project’s Lower-Than-Expected Results
August 10, 2009
According to sources from the oil industry, some government officials have started to question Pemex’s Chicontepec
multibillion-dollar megaproject’s efficiency and are rather skeptical regarding its ability to turn around the country’s
slumping oil industry as results fall short. Pemex has banked on a USD 11 billion plan to tap the unconventional
Chicontepec crude deposit to shore up output as yields at other fields plummet, sending Mexican oil production to
near 20-year lows. Sources say Pemex has spent too much money on Chicontepec and officials are wondering why
there is not more oil.
ABB Moves Production To Mexico
August 12, 2009
Engineering firm ABB announced that its North America division will shift its medium-voltage switches production from
its Lake Mary, Florida, plant to the Mexican state of San Luis Potosi. ABB said the move will save it between 100 and
160 jobs in Lake Mary, but noted that the U.S. plant will continue to develop and commercialize products and will
maintain the engineering operations and customer service unit. ABB said production transfer from a plant to another
might be completed by 1H 2010.
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Trade & Investment
Presidents Calderon, Obama, Prime Minister Harper Discuss Trade At Summit
August 10, 2009
President Calderon and U.S. and Canadian counterparts President Barack Obama and Prime Minister Stephen
Harper, respectively, met at the Fifth North American Leaders' Summit, in Guadalajara, in the Mexican state of
Jalisco, to discuss trilateral trade issues such as NAFTA’s Mexican trucks program, or U.S. "Buy American" rules,
among other topics. Before the summit, at least 300 people from the Alternative Social Organizations Movement
demonstrated against the so-called "Three Amigos" summit to demand a renegotiation of NAFTA, which came into
force 15 years ago. The protesters said they want to see tariffs imposed on corn and bean imports into Mexican
markets in which they say Mexican producers have suffered due to the treaty. The protest came off without incidents
of violence.
INEGI: Mexican Exports Fall 26.6% In June
August 10, 2009
According to the National Statistics Institute (INEGI), Mexico’s exports fell 26.6% at annual rates in June to USD 19.3
billion, leading that month’s trade deficit to USD 209 million. Oil exports dropped 49.5% while non-oil exports plunged
20.4%. INEGI said imports fell 25.1% in June at annual rates and stood at USD 19.5 billion; oil imports contracted
35.5%, while non-oil purchases decreased 23.8%. Meanwhile, the U.S. Department of Commerce (DOC) said that
trade between the U.S. and Mexico shrank 24.6% during 1H when compared to the like 2008 period, on economic
woes. Trade between the two countries amounted to USD 138.4 billion between January and June 2009, while 2008’s
figure stood at USD 183.7 billion.
Mexico’s, Uruguay’s Presidents Sign Strategic Trade Agreement, Reinforce FTA
August 14, 2009
President Calderon announced that he and Uruguayan counterpart Tabare Vazquez signed an agreement to
strengthen trade and pledged to improve political dialogue. President Calderon said that under the new deal, which
he referred to as a Strategic Association Accord, Mexico and Uruguay are now "strategic partners" and both
countries’ ongoing bilateral commercial relations, present since the signing of an FTA in 2004 that increased trade
between the two countries threefold, will be boosted. President Calderon was on an official visit to Uruguay as part of
a broader Latin American tour.
President Calderon Visits Brazil, Discusses Trade With President, Executives
August 15, 2009
President Calderon said during an official visit to Brazil, as part of a broader Latin American tour, that he supports the
idea of a free trade agreement between Brazil and Mexico, the two biggest economies in Latin America. Calderon
said he is enthusiastic about the idea of a deal proposed by Brazilian business executives to push for a commercial
accord for the two nations. Calderon later met with Brazilian counterpart President Luiz Inacio Lula da Silva and said
a free trade accord could benefit both nations, as the economies of Brazil and Mexico account for over 70% of Latin
America’s economic activity.
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Banking, Insurance & Finance
Regulators To Review Afores’ Commissions Proposals For 2010
August 10, 2009
Pension fund managers (Afores) will have to calculate and submit their commissions tariffs proposals for 2010 to
pension fund regulator CONSAR for approval before the end of November. The new commissions that Afores will be
able to charge their clients will be limited to 1.7%, down from 1.94% in 2009. Experts say the industry will be severely
damaged, as Afores will see their income reduced significantly.
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Business & Industry
INEGI: Industrial Production Down 10.6% In June
August 11, 2009
According to the National Statistics Institute (INEGI), Mexico’s industrial production fell 10.6% in June from a year
ago, marking the third consecutive month of double-digit declines, led by a sluggish manufacturing sector. INEGI said
that industrial output fell 0.87% from May in seasonally adjusted terms. Manufacturing fell 15.2% from June 2008 on
lower output of automobiles, metals, and computers, while construction fell 6.5% and mining output fell 2%. Utilities—
electricity, gas, and water—edged up 0.4% from June 2008. Meanwhile, Mexico’s Confederation of Industrial
Chambers (CONCAMIN) said that the country’s industry might grow by as much as 40% in upcoming years, as
Mexico is expected to recover from the economic downturn, and as the organization pushes for a shift in informal
commerce regulation.
Jumex To Enter Colombian Market, To Open Plant By 2012
August 10, 2009
Mexican juice maker Jumex announced that it plans to start distributing juices in Colombia this year and that it will
open a plant there in 2012 to serve other Latin American markets. Jumex opened a distribution center in El Salvador
this year, through which it sends its products to other Central American markets.
Anheuser-Busch Inbev, GModelo To Enter Arbitration Proceedings
August 13, 2009
U.S.-Belgian brewer Anheuser-Busch Inbev (ABI) announced that it will start arbitration proceedings against Mexican
brewer Grupo Modelo (GModelo) this month as the latter is trying to get USD 2.5 billion in damages from Anheuser-
Busch stemming from InBev’s takeover of the latter. Last October GModelo filed a notice of arbitration, under United
Nations rules, against Anheuser-Busch. The notice claimed the transaction between Anheuser-Busch and InBev violated provisions of a 1993 agreement through which Anheuser-Busch took a major stake in GModelo. ABI said
they believe that the claims are without merit because, among other things, there is no change of control clause in the
investment agreement with GModelo. A decision is expected by the end of the year.
Vitro Secures Extra Time In Creditors Dispute
August 14, 2009
Mexican glassmaker Vitro announced that it succeeded in delaying a New York Judge’s resolution on a summary jury
trial request by six of its creditors on a MXN 240 million debt in derivatives. Vitro said the judge agreed to review the
case and take more time to issue a resolution, awarding the company the opportunity to prove the banks’ claims are
without merit and it should win the case. Earlier this month Vitro said its creditors rejected a restructuring proposal but
noted it is still working to provide a solution.
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Automotive
AMIA: Auto Output Falls 25% In July Year-On-Year
August 13, 2009
According to the Mexican Automotive Industry Association (AMIA), Mexico's automobile production plummeted in July
from a year earlier, falling 25% to 108,897 units. AMIA said, however, that the fall was the least severe this year, as
U.S. consumers rushed to take advantage of the U.S. government "cash for clunkers" program. Most of Mexico's
production goes to the U.S., and output has been plunging all year in annual terms. Meanwhile, the Mexican
Association of Auto Distributors (AMDA) said that exports were down 26% on the year to 90,872 units and domestic
new car sales were 34% lower than in July 2008 at 56,443 units.
SE: GM To Invest USD 1.2 Billion In Mexico Between 2009-2011
August 11, 2009
According to the Ministry of Economy (SE), U.S. automaker General Motors (GM) might be considering investing as
much as USD 1.2 billion in Mexico between 2009 and 2011. SE also said that GM announced more investments in
Mexico during 2008 than any other firm, with USD 3.6 billion allocated to several projects countrywide and creating an
important number of jobs.
Posco Announces Opening Of Mexico Plant
August 9, 2009
South Korean supplier of steel for the automotive industry Posco MPPC announced that it has concluded the
construction of its USD 250 million manufacturing plant, which produces steel sheets for automobiles, in the state of
Tamaulipas, and that it has inaugurated the facility. Posco said the 24/7 plant has an installed capacity to produce
400,000 tons per year of steel for the automotive industry.
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Housing & Mortgaging
IADB To Deliver Second USD 500 Million Loan Under Credit Line To Mexico
August 14, 2009
The Inter-American Development Bank (IADB) announced it will give Mexico its second loan for USD 500 million
under a USD 2.5 billion credit line aimed at boosting liquidity in the country's primary and secondary mortgage
markets. IADB said the loan will allow federal development bank Sociedad Hipotecaria Federal (SHF) to continue
purchasing mortgage-backed securities as it seeks to maintain liquidity in the secondary mortgage market. The loan
is for a 25-year term, with a 5-year grace period, at an adjustable interest rate based on LIBOR.
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Construction & Infrastructure
SCT Cancels Projects Worth MXN 12.6 Billion
August 14, 2009
The Communications and Transport Ministry (SCT) announced that it will cancel several road projects and other
infrastructure works worth together MXN 12.6 billion, as the federal government announced a MXN 50 billion budget
cut. SCT did not specify which projects were affected. Meanwhile, SCT added that it has already awarded contracts
worth 79% of its 2009 budget for infrastructure, 90% of its budget for roads, 88% of its budget for roads conservation,
and 74% of its budget for rural highways. In addition, SCT said it employed 100% of the funds it received for the
Temporary Employment Program (PET) for roads construction and modernization.
Cemex Announces 100% Of Bank Creditors Support Refinancing Plan
August 10, 2009
Mexican cement maker and building materials provider Cemex announced that it has secured the support of all its
bank creditors for a plan to refinance close to USD 15 billion in debt. Cemex said that the debt rescheduling is in the
documentation stage and that details will be released once the agreement becomes effective. Cemex said that the
agreement with around 75 banks and private placement noteholders extends maturities through February 2014, with
a schedule of semiannual payments. The debt initially was to mature between 2009 and 2011. Cemex said it will pay
bank creditors interest of LIBOR plus 450 basis points on the refinanced debt, and a fixed rate of 8.91% to private
placement creditors on USD 895 million.
Cemex Might Issue Up To 4.8 Billion New Shares
August 14, 2009
Mexican cement maker and building materials provider Cemex said it will sell up to 4.8 billion new shares as part of a
debt restructuring plan. Cemex's CPO shares traded on the Mexico City stock exchange (BMV) are composed of
three ordinary shares, implying the company could sell up to 1.6 billion CPO shares.
PDI Secures MXN 145 Million Contract To Build Water Treatment Plant
August 13, 2009
Mexican construction firm Proyectos y Desarrollos de Infraestructura (PDI), owned by businessman Alfonso Romo,
announced that it secured a MXN 145 million contract to build a water treatment plant in Cuautitlan Izcalli, in the state
of Mexico (Edomex). Bidders for the project included billionaire Carlos Slim’s Carso Infraestructura y Construccion
(CICSA) and 16 other companies.
IDEAL To Invest In Commercial And Services Centers At Subway Stations
August 10, 2009
Mexican billionaire Carlos Slim’s construction company IDEAL announced that it will invest MXN 900 million to
establish commercial and services centers at the Modal Azteca (Etram) subway station this year and added that it
allocated MXN 600 million for the first phase of a similar project at the El Rosario station next year.
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Transportation
Government Pushes For Mexicana, Aeromexico Merger
August 12, 2009
Communications and Transport Minister Juan Molinar Horcasitas said to Congress that the government should seek
to merge Mexican airline Mexicana de Aviacion and Aeromexico to form an efficient and solid company to better
compete with foreign firms and to provide better services to customers at lower prices. Horcasitas noted that both
airlines together account for 56% of total passengers in Mexico, preventing full competition in the country’s air
transportation sector. Horcasitas added that Mexico’s air travel has started to recover from the negative effects of the
A/H1N1 influenza outbreak.
Aviacsa Starts Bankruptcy Proceedings; Announces Assets Sale
August 12, 2009
Mexican low-cost airline Aviacsa announced that it has started bankruptcy proceedings following approval for a
creditors’ meeting by a district court and added that it is preparing to sell most of its assets to at least three interested
parties, whose identities were not disclosed. Aviacsa decided to restructure as much as MXN 600 million in debt, as it
failed to pay the government fees for the use of Mexican airspace. Meanwhile, Aviacsa said it will be allowed to
resume operations shortly but noted that it will focus on its most profitable destinations.
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Telecommunications & Technology
PGR Requests Supreme Court’s Intervention In TV Azteca-COFETEL Case
August 14, 2009
The Federal Attorney General’s Office (PGR) requested the Supreme Court’s (SCJN) intervention to resolve a dispute
between the Federal Telecommunications Commission (COFETEL) and broadcaster TV Azteca, which obtained court
protection to be allowed to start telecommunications and video-on-demand operations, while COFETEL denied the
firm permission to do so, as its concession title does not enable it to provide such services.
COFETEL: New Resolution Compels Telcel To Comply With Interconnection Plan
August 12, 2009
The Federal Telecommunications Commission (COFETEL) said that a recent resolution by a district court compels
Mexican mobile telephony provider Telcel to comply with the government’s Fundamental Technical Interconnection
and Interoperability Plan (Plantefin or PTFII). In April COFETEL said that Telcel did not have to operate according to
PTFII and share its infrastructure with competitors, as a court had suspended that obligation for the company in a move that would annul the PTFII for other firms. Nevertheless, the new ruling compels Telcel to comply with the plan.
Telmex Says It Has Most Competitive Tariffs Among OECD’s Members
August 12, 2009
Telmex said that according to a comparison between the Organization for Economic Co-Operation and
Development’s (OECD) Communications Outlook 2009 and its own results, it offers very competitive tariffs in
residential fixed telephony, in which Mexico ranks 8th, 5th, and 19th in the basic, medium, and high
telecommunications price baskets, respectively. Telmex added that while broadband services’ prices fell an average
13.6% per year among OECD members, its tariffs dropped nearly 21% per year. Telmex added that OECD’s
Communications Outlook 2009 cannot be fully applied to Mexico, as some indicators would fail to truly reflect
Mexicans’ consumption patterns, and it also noted that if factors such as the purchase power parity are taken into
account for the study, it would reflect that Telmex offers some of the lowest tariffs among OECD members.
COFETEL: 12 Million Mexicans Have Registered Cell Phone Numbers At RENAUT
August 13, 2009
The Federal Telecommunications Commission (COFETEL) said that 12 million Mexicans have submitted their
personal information and mobile telephone numbers to the Ministry of Interior’s (SEGOB) National Database Of
Mobile Telephony Users (RENAUT) after legislation that passed in 1Q this year required all mobile phone users to
submit this information for security purposes. Mobile phone users have until April 10, 2010, to submit their
information, and legislators expect some 80.4 million lines to be included in the RENAUT.
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Hospitality & Tourism
Banxico, SECTUR: Foreign Tourism Revenue Falls 29% In June, 17% In 1H
August 10, 2009
According to the central bank (Banxico), revenue from foreign tourism to Mexico fell 29% in June due to the global
economic downturn and as the fear of the A/H1N1 influenza virus prevails internationally. Meanwhile, the Tourism
Ministry (SECTUR) said that foreign tourism revenue fell 17% during 1H when compared to the like 2008 period.
SECTUR specified that 10.7 million foreign tourists visited Mexico during 1H this year, 6% less than in 2008, and they
spent USD 6.04 billion.
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Economy
SHCP: Mexico Faces Most Important "Financial Shock" In Past 30 Years
August 13, 2009
The Finance and Public Credit Ministry (SHCP) said that Mexico faces the most important "financial shock" of the
past 30 years, leading the country’s deficit estimates at MXN 780 billion, mostly due to lower revenues. The figure is
equivalent to 25% of the federal government’s expenditures budget for 2009, prompting authorities to reduce the
number of projects from different sectors as well as the amount of money allotted to them, except for social
development programs destined to address poverty. President Calderon acknowledged that the country is facing a
"financial shock" but noted that the worst part of the crisis is nearly over.
SHCP Announces MXN 50 Billion Cut To 2009 Budget
August 15, 2009
The Finance and Public Credit Ministry (SHCP) announced a MXN 50 billion budget cut this year, which affected
several Ministries’ projects. The Communications and Transport Ministry (SCT) cancelled infrastructure and roads
projects contracts worth MXN 12.6 billion as SHCP lowered SCT’s funds by MXN 8.14 billion; the Federal Electricity
Commission (CFE) saw the part of the budget allocated for its projects reduced by MXN 7.4 billion, while funds for the
Public Education Ministry (SEP) fell MXN 7.1 billion, among others. The least affected by the cuts were the Health
Ministry (SSA) and social security institutions IMSS and ISSSTE, as the government prepares for an eventual reoutbreak
of the A/H1N1 influenza virus.
SHCP Offers Securitization Of MXN 13 Billion For FEIEF
August 13, 2009
The Finance and Public Credit Ministry (SHCP) announced that it will seek to hasten the securitization of MXN 13
billion from the Federal Entities’ Income Stabilization Fund (FEIEF) to help Mexico’s states overcome the current
global economic downturn. Agustin Carstens, head of the SHCP, announced another MXN 6 billion from the fund for
2010 at a meeting with the National Governors’ Conference (CONAGO). SHCP said the first results of the
securitization are due in September.
SHCP Announces Taxes Increase For 2010
August 13, 2009
The Finance and Public Credit Ministry (SHCP) announced increases on taxes next year in order to compensate for the declining oil and tourism revenues and to ensure healthier public finances. SHCP said that the rather recently
implemented flat corporate tax (IETU), which has awakened controversy among some sectors, should be reinforced.
Mexico’s Country Risk Continues Decline, Reaches 175 BP
August 11, 2009
According to the Finance and Public Credit Ministry (SHCP), Mexico’s country risk fell to 175 basis points (BP), 48 BP
down from what was reported during the last week of July. 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
President Obama Vows To Pursue Efforts For An Immigration Reform In 2010
August 11, 2009
U.S. President Barack Obama reiterated at the end of the Fifth North American Leaders' Summit his commitment to
pursuing a comprehensive immigration reform, despite his packed political agenda and the staunch opposition such
an initiative is likely to face. He said he would begin work on getting the measures passed between November 2009
and hopefully March 2010. Around 10% of Mexico's citizens live in the U.S. Meanwhile, Canadian Prime Minister
Stephen Harper stood by a decision a month ago to require Mexicans to apply for visas to travel to Canada.
U.S. DHS Focuses On Immigration Enforcement
August 12, 2009
A day after U.S. President Obama vowed to pursue efforts to overhaul immigration laws, U.S. Secretary of Homeland
Security Janet Napolitano took a tough stance on enforcing them and defended the administration's assertive strategy
against illegal immigrants and companies that employ them, relying largely on programs started under President
George W. Bush. That strategy has drawn fire from immigrant groups and many of Obama's Hispanic supporters,
who say the president has not lived up to campaign promises to ease the pressure on illegal workers and to seek
changes in immigration laws that would give more workers visas. Napolitano argued that the Obama Administration
has changed Bush's programs in critical ways, such as putting an emphasis on deporting criminals and holding more
employers responsible for hiring illegal workers.
SAT Replaces Customs Staff, Revamps Borders
August 15, 2009
Tax Administration Service (SAT) spokesman Pedro Canabal announced that the government has replaced all 700 of
its customs inspectors with agents newly trained to detect contraband, from arms and drugs to TVs and other bigticket
appliances smuggled to avoid import duties. The shake-up—part of a broader effort to root out corruption and
improve vigilance at Mexican ports with new technology—doubled the size of Mexico's customs inspection force. The
inspectors at all 49 of Mexico's customs points were replaced with 1,400 better-trained agents. The main focus of the
overhaul is to combat tax evasion, although Mexico is also trying to seize more guns smuggled in from the U.S. and
elsewhere that end up in the hands of drug gangs cartels.
Cato Institute: Legalizing Undocumented Workers Might Benefit U.S. Economy
August 15, 2009
According to a study by U.S. nonprofit public policy research foundation Cato Institute, legalizing as much as 8.3
million undocumented workers currently in the U.S. might have a positive effect in that country’s economy. Legalizing
undocumented workers and changing their status to "guest workers" from "illegal" would contribute to an
improvement in their productivity and reduce people smugglers’ income. In addition, the study indicated that such a
reform would bring better opportunities for U.S. citizens to occupy positions requiring high qualifications. Cato’s
proposal included a visa tax that would be charged on employers and which could amount to USD 180 billion, or
1.27% of the nation’s GDP.
U.S. DHS Creates "Our Border" Civic Network
August 13, 2009
The U.S. Department of Homeland Security (DHS) Public Affairs, in coordination with the Office of International
Affairs, announced plans to use the social networking site Ning.com to facilitate the creation of the "Our Border" civic
network focused on southwest border issues. "Our Border" will enable a diverse population of stakeholders to
remotely engage in a wide-ranging policy discourse on border-related matters. DHS will use "Our Border" to facilitate
discussion and event creation, communicate DHS policy, host DHS photos and videos, engage users in dialogue, as
well as feature individual and group accomplishments.
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Politics
Presidents Calderon, Obama, Prime Minister Harper Meet At "Three Amigos" Summit
August 10, 2009
President Calderon, and U.S. and Canadian counterparts President Obama and Prime Minister Harper, respectively,
met during the Fifth North American Leaders' Summit, in Guadalajara, in the Mexican state of Jalisco, to discuss
climate change and clean energy, swine flu, immigration, trade, and organized crime. While it was clear that the three
leaders had not reached any significant new agreements, they expressed understanding for one another's positions
and vowed to keep working to resolve outstanding disputes. President Obama pressed for a new tone in the U.S.
relationship with Mexico but found no immediate progress on the divisions between him and President Calderon over
the pace of U.S. drug-fighting aid and a ban on Mexican trucks north of the border.
PRI To Control Majority Of Lower House’s Commissions
August 9, 2009
The Institutional Revolutionary Party (PRI), which won the most recent congressional elections, will control the
majority of the Lower House’s 44 commissions through 237 legislators, and analysts believe they will seek to use their
influence to shape the use and distribution of next year’s federal budget, social reforms, and the schedule for justice
amendments. Meanwhile, analysts say the 143 legislators from the ruling National Action Party (PAN) will seek to
lead fiscal, financial, and public security reforms, while the 71 deputies from the leftist Democratic Revolution Party
(PRD) will try to employ their influence in the cultural, rural development, and public education fields.
PRD Confirms Navarrete; Encinas As Party Coordinators In Senate, Lower House
August 12, 2009
The Democratic Revolution Party (PRD) announced that it has confirmed the election of Carlos Navarrete and
Alejandro Encinas as coordinators for the party’s legislators at the Senate and at the Lower House, respectively.
Encinas was elected when Guadalupe Acosta, from a rival faction within the PRD, withdrew his candidacy in
exchange for the vice-coordination and other leading positions for his colleagues within the Lower House’s
commissions in which the PRD is likely to preside.
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Justice, Safety & Crime
U.S., Canada Vow To Cooperate With Mexico On War Against Drug Cartels
August 11, 2009
President Barack Obama reiterated, during the Fifth North American Leaders' Summit, U.S. support in helping Mexico
fight drug cartels. President Obama and President Calderon discussed the drug and arms trafficking problem
affecting both nations and the U.S. support for Calderon's efforts, including how the U.S. can hasten the delivery of
aid to Mexico. Obama also emphasized the importance of human rights in the battle to rid the country of illegal drugs.
Meanwhile, Canadian Prime Minister Stephen Harper pledged to help Mexico train its police to address the cartels,
allocating USD 15 million to help train federal Mexican law enforcement officials and to receive 300 Mexican
policemen in Canada for training.
Authorities Arrest Smuggler Suspected In Attempt Against Calderon’s Life
August 10, 2009
Authorities announced that they captured Dimas Diaz, a midranking member of the Sinaloa drug cartel believed to
have been plotting to assassinate President Calderon in revenge for the army's crackdown on trafficking. Diaz was
detained in the city of Culiacan, in the state of Sinaloa, with four other traffickers. Authorities said "government
intelligence reports led us to find out the threat was from the Sinaloa cartel, with Dimas Diaz entrusted with the details
of a possible attack." Meanwhile, the Federal Attorney General’s Office’s (PGR) anti-drug-trafficking intelligence unit
SIEDO said it is investigating further threats.
Drug Cartels Expand Operations From Drug Smuggling To Extortion Mafias
August 16, 2009
According to certain authorities, analysts, and the most affected, shopkeepers, Mexican drug cartels, operations have
expanded from drugs smuggling to full-scale extortion mafias. Business owners in the state of Michoacan cite the list
of "protection" fees they pay to the La Familia drug cartel to stay in business: MXN 100 a month for a stall in a street
market and MXN 30,000 for an auto dealership or construction-supply firm. Drug cartels have morphed into full-scale
mafias, running extortion and protection rackets and trafficking everything from people to pirated DVDs. As oncelucrative
cocaine profits have fallen and U.S. and Mexican authorities crack down on all drug trafficking to the U.S.,
gangs are branching into new ventures—some easier and more profitable than drugs.
U.S. Ambassador Cites Mexico's Progress On Rights
August 16, 2009
Recently appointed U.S. Ambassador to Mexico Carlos Pascual said that a report to be finished shortly and submitted
to the U.S. Senate will stress that Mexico is making progress on respecting human rights in its fight against drug
cartels. President Obama referred to drug traffickers as the biggest human-rights violators in Mexico and said his
administration would continue supporting Calderon "as long as he is president of Mexico." In a spirited defense of his
strategy, Calderon challenged anyone to prove "any case, just one case" of human-rights violations, arguing that the
fight against drug traffickers is not so much against stopping northbound drugs but for establishing a rule of law in
Mexico and keeping Mexicans safe. However, organizations such as Human Rights Watch (HRW) say evidence
proves the army has violated human rights, and Mexico’s Federal Institute for Access to Public Information (IFAI) ordered the Defense Ministry (SEDENA) to make public any complaint against military personnel on human rights.
U.S., Mexico Sign Agreement To Stem Cross-Border Gun Traffic
August 13, 2009
U.S. Secretary of Homeland Security Janet Napolitano and Mexican Attorney General Eduardo Medina Mora signed
an agreement designed to help stem the illegal flow of U.S.-made guns and ammunition that has crossed the border
into Mexico. The letter of intent signed in San Antonio would see U.S. federal agencies share firearms trafficking
information with Mexico’s Federal Attorney General’s Office (PGR), with the aim of tracing illegal weapons and
prosecuting arms smugglers. In addition, Napolitano announced USD 30 million in federal grants to prevent drugfueled
violence from spilling into the U.S. from Mexico under the federal Operation Stonegarden program.
U.S. Law Enforcement Agencies Have 597 Open Cases Against Mexican Cartels
August 11, 2009
According to the U.S. Organized Crime Drug Enforcement Task Force (OCDETF), law enforcement agencies have
597 open cases against Mexican drug cartels. OCDETF Director Tom Padden provided the information during a
Border Security Conference in San Antonio. Meanwhile, figures from U.S. and Mexican authorities indicated that the
U.S. Drug Enforcement Administration (DEA) has trained 2,000 Mexican agents and certified over 70 federal officers
in drug-detection procedures. In addition, the DEA said it has evidence proving Mexico’s anti-drugs efforts have
compelled traffickers to change routes and have complicated and delayed their operations.
Mexican Lawyer Who Defended Drug Traffickers Murdered
August 11, 2009
Silvia Raquenel Villanueva, a Mexican lawyer known for defending high-profile drug-trafficking suspects, was shot to
death at a street market in the northern city of Monterrey, in the state of Nuevo Leon. Nobody else was hurt in the
shooting at the normally crowded Pulga Rio market, suggesting an execution-style attack. The official said there was
no immediate information on the possible motive or identity of the killers. Villanueva had survived previous attempts
on her life, including a 1999 attack in Mexico City in which she was wounded by gunfire.
Gigantic Meth Lab Might Have Been Sinaloa Cartel Leader’s Hideout
August 12, 2009
The National Defense Ministry (SEDENA) announced that troops found what might have been a hideout of Joaquin
"El Chapo" (Shorty) Guzman, the country's most wanted drug lord, at a giant methamphetamine lab hidden in the
northern Sierra among cabins equipped with caviar face cream and escort catalogues. Media published photographs
of a complex of 22 secluded mountain cabins, camouflaged to be invisible from the air. One was outfitted with a kingsized
bed, luxury clothes, satellite television, pirated movies, and high-speed Internet. A local newspaper said army
officials suspected the well-equipped cabin was used by Guzman or his associate Ismael Zambada to oversee
operations at the largest synthetic-drug lab ever found in Mexico.
Colombia To Train Mexican Federal Police On Antikidnapping Operations
August 11, 2009
Mexico and Colombia agreed on kicking off a bilateral Police Cooperation Program by means of which 10,000
Mexican federal agents will be trained in antikidnapping operations by Colombia’s National police.
SCJN Orders 22 Tied To 1997 Acteal Killings Freed
August 13, 2009
The Supreme Court (SCJN) ordered 22 indigenous people freed from prison after finding that federal prosecutors
used forged evidence and false testimony to implicate them in a 1997 massacre in a tiny hamlet in Acteal, in the state
of Chiapas. Gunmen crept down a hillside into Acteal on December 22, 1997, and opened fire on the local population,
killing 45 people, including pregnant women and young children. In a 4-to-1 vote that laid bare the deficiencies of the
Mexican criminal justice system, the court ruled that prosecutors and lower court judges had violated the rights of 22
of the accused in their rush to justice. The court ordered that four more prisoners be resentenced and said the
convictions of 31 others would be reviewed in the coming days.
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Health & Science
Calderon, Obama, Harper Discuss A/H1N1 During "Three Amigos" Summit
August 10, 2009
Leaders of Mexico, the U.S., and Canada discussed and worked during the Fifth North American Leaders' Summit—
dubbed the "Three Amigos" summit—to present a united front to try to limit the spread of the A/H1N1 influenza virus.
Officials said the goal was to ensure that the people of the three countries are fully informed about steps to mitigate
the spread of the virus, which is believed to have originated in Mexico last spring and which now is a pandemic that
has infected thousands worldwide. The leaders said they will look to enhance the exchange of information, ensure
common understanding on the effectiveness of public health measures, and share expertise.
SSA: Government Lifts Plant Requirement To Import Drugs
August 10, 2009
The Health Ministry (SSA) announced that President Calderon signed a decree allowing firms that do not have
factories in Mexico to import drugs, leading to more multinational companies applying to import medicines into
Mexico. SSA said the move will increase competitiveness in the sector and medicines’ prices will fall. However, the
importer firms still have to obtain regulatory approval and import licenses.
IMSS Announces Deficit Will Be MXN 8.8 Billion
August 10, 2009
The Mexican Social Security Institute (IMSS) announced that, for the first time on record, it will have a MXN 8.8 billion
deficit, noting that such a blow for its finances will inevitably have a repercussion in the services it offers and
jeopardize its financial viability through 2050, by when its demographic and epidemiologic drafted profile for the
population suggests an increased number of patients with expensive-to-treat chronic diseases.
Many Seek Care In Mexico As U.S. Health Row Rages
August 13, 2009
U.S. citizens having health insurance that covers their medical and dental care in the U.S. are increasingly traveling to
Mexico to avoid the healthcare costs that are not paid by insurance, as they consider having good healthcare at
reasonable prices south of the border. While the bitter row continues to rage at town hall meetings across the U.S.,
signs of the U.S. system's failings are visible in Mexican border cities, where cut-price pharmacies, dental clinics, and
doctors' surgeries vie for business from Americans who cannot afford treatment at home.
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Sports
Calderon, Obama, Harper Discuss A/H1N1 During "Three Amigos" Summit
August 10, 2009
Leaders of Mexico, the U.S., and Canada discussed and worked during the Fifth North American Leaders' Summit—
dubbed the "Three Amigos" summit—to present a united front to try to limit the spread of the A/H1N1 influenza virus.
Officials said the goal was to ensure that the people of the three countries are fully informed about steps to mitigate
the spread of the virus, which is believed to have originated in Mexico last spring and which now is a pandemic that
has infected thousands worldwide. The leaders said they will look to enhance the exchange of information, ensure
common understanding on the effectiveness of public health measures, and share expertise.
SSA: Government Lifts Plant Requirement To Import Drugs
August 10, 2009
The Health Ministry (SSA) announced that President Calderon signed a decree allowing firms that do not have
factories in Mexico to import drugs, leading to more multinational companies applying to import medicines into
Mexico. SSA said the move will increase competitiveness in the sector and medicines’ prices will fall. However, the
importer firms still have to obtain regulatory approval and import licenses.
IMSS Announces Deficit Will Be MXN 8.8 Billion
August 10, 2009
The Mexican Social Security Institute (IMSS) announced that, for the first time on record, it will have a MXN 8.8 billion
deficit, noting that such a blow for its finances will inevitably have a repercussion in the services it offers and
jeopardize its financial viability through 2050, by when its demographic and epidemiologic drafted profile for the
population suggests an increased number of patients with expensive-to-treat chronic diseases.
Many Seek Care In Mexico As U.S. Health Row Rages
August 13, 2009
U.S. citizens having health insurance that covers their medical and dental care in the U.S. are increasingly traveling to
Mexico to avoid the healthcare costs that are not paid by insurance, as they consider having good healthcare at
reasonable prices south of the border. While the bitter row continues to rage at town hall meetings across the U.S.,
signs of the U.S. system's failings are visible in Mexican border cities, where cut-price pharmacies, dental clinics, and
doctors' surgeries vie for business from Americans who cannot afford treatment at home.
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Environment
North American Leaders Agree To Push For Green Fund To Cut Carbon Emissions
August 10, 2009
Leaders from Mexico, the U.S., and Canada have agreed to push for a green fund to reward nations that cut carbon
emissions. President Calderon said he and U.S. and Canadian counterparts President Barack Obama and Prime
Minister Stephen Harper, respectively, agreed on the creation of a green fund and to work together to achieve a
climate change deal in Copenhagen, Denmark, where talks to find a new proposal to replace the Kyoto Protocol on
climate change will be held.
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