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Energy
President Calderon Suggests Pemex/Petrobras Alliance
August 22, 2009
President Calderon suggested during an official visit to Brazil, an alliance between Mexico's state-owned oil company
Pemex and Brazilian peer Petrobras. President Calderon said Petrobras could play a decisive role in helping Pemex
boost its currently slumping oil production. Petrobras is already producing gas in Mexico through a deal with two local
firms and said it hopes to increase cooperation with Pemex. Calderon and Brazilian President Luiz Inacio Lula da
Silva also expressed support for developing a "Working Plan on Fuel" within the framework of a 2007 MOU between
both countries' Energy Ministries.
Pemex Announces January-July Crude Output Down 7.6% To 2.62 Million B/D
August 21, 2009
Pemex announced that it produced an average 2.62 million barrels a day (b/d) of crude oil between January and July,
a 7.6% drop when compared to the first seven months of 2008. Pemex said crude exports in the period fell 13.6% to
1.25 million b/d at an average price of USD 49.53 a barrel, compared with USD 97.50 a year ago. Meanwhile, Pemex
also said it raised natural gas production by 4.1% from a year ago to an average 7.028 billion cubic feet a day in the
January-July period. July exports rose to 1.31 million b/d from 1.24 million in June, but were down from 1.38 million
b/d in July 2008. Pemex exported 1.1 million b/d in July to the Americas, mainly the U.S.
ICA-Fluor Secures USD 638 Million Contract
August 20, 2009
ICA Fluor, the industrial engineering, procurement and construction firm jointly owned by U.S. Fluor and Mexico's
Ingenieros Civiles y Asociados (ICA), announced that Pemex awarded it a USD 638 million contract to build a new
section of the Cadereyta refinery in the state of Nuevo Leon to produce ultralow-sulfur gasoline. Work on the project
is set to begin on September 21.
IPC Secures USD 588 Million Gas Drilling Contract
August 18, 2009
Mexican drilling firm Industrial Perforadora de Campeche (IPC) announced that it secured a USD 588 million, threeyear
contract from Pemex to drill natural-gas wells in the Burgos basin, beating foreign rivals Halliburton's and
Schlumberger's bids, among others. Burgos is the largest producer of nonassociated natural gas in Mexico and
accounts for approximately a fifth of total production.
Pemex Announces Plans To Drill 200 Oil Wells In The Southern District
August 19, 2009
Pemex announced that it is seeking contractors to drill 200 oil wells in the southern district, formed by various states,
as it struggles to stabilize plummeting oil production. Drilling is scheduled to start in early October and last three
years. International oil services companies Halliburton, Schlumberger, Weatherford International, Baker Hughes and
Nabors Industries have registered for the tender, in addition to seven Mexican oil services firms, including billionaire
Carlos Slim's Servicios Integrales GSM, a unit of industrial conglomerate Grupo Carso.
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Mining
GMex Raises Bid For Asarco To USD 2.2 Billion
August 18, 2009
Mexican miner Grupo Mexico (GMex) announced during proceedings in a Texas courtroom that it raised its bid for
U.S. copper smelter Asarco LLC to USD 2.2 billion plus a USD 280 million note, adding approximately another USD
500 million to its bet against Indian metals giant Vedanta Resources PLC's offer. GMex said its offer would include full
repayment of administrative, priority, secured and asbestos personal injury claims, as well as payment in full on
general unsecured claims.
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Trade & Investment
SE: FDI To Mexico At USD 10 Billion In 1H
August 19, 2009
The Ministry of Economy (SE) announced that foreign direct investment (FDI) to Mexico amounted to USD 10 billion
in the first six months of the year, prompting Minister Gerardo Ruiz Mateos to note that Mexico's appeal for investors
has not declined. Mateos said during the Invest Mexico Forum 2009 that SE is implementing a series of programs to
boost FDI further, including MXN 50 billion for new investors. SE added that approximately 2000 new companies
were created since the government implemented last month a new program and a Web site simplifying the process of
establishing a business in Mexico. Meanwhile, President Calderon said that such amount of FDI will help create more
employment and called on investors to seize the competitive advantages Mexico offers, such as the exchange rates
and the country's strategic geographic position.
Mexico Joins U.S., E.U., Files WTO Complaint Over China Export Restrictions
August 21, 2009
Mexico joined the U.S. and European Union (E.U.) in filing a complaint with the World Trade Organization (WTO) over
China's restriction on exports of certain raw materials, such as bauxite, coke, fluorite and manganese, among others.
Mexico said China's restrictions on exports are applied through quotas, taxes and other means it considers contrary
to WTO rules. China has 30 days to respond to Mexico's request for trade consultations; otherwise Mexico can
request an arbitration panel.
Argentina Calls For Greater Cooperation With Mexico
August 17, 2009
Argentinean Foreign Affairs Minister Jorge Taiana said during an official visit to Mexico that both countries should
strengthen their commercial ties in order to better address the current economic downturn. Taiana, who was
accompanied by legislators and executives from 56 Argentinean companies, said the new challenges resulting from
the crisis can be better overcome by strengthening and consolidating ties with commercial partners.
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Banking, Insurance & Finance
CONSAR: Pension Savings Reach MXN 1.019 Trillion At End Of July
August 17, 2009
According to Mexico's pension fund regulator (CONSAR), compulsory retirement savings managed by pension fund
companies (Afores) rose to MXN 1.019 trillion at the end of July, up from MXN 842.3 billion a year earlier. Total
assets under management, including voluntary and other types of savings, as well as Afores' regulatory capital, grew
21.4% year-on-year to MXN 1.039 trillion. At the end of July, 67.7% of total assets were in government securities,
16% in domestic private-sector debt, 7.7% in domestic equities, 4.7% in international debt and 3.9% in international
equities. The country's 17 private-sector Afores managed 39.2 million accounts at the end of July.
Banxico Leaves Interest Rate Unchanged
August 21, 2009
The central bank (Banxico) held borrowing costs steady, ending a string of interest rate cuts on expectations the
country could start to pull out of a deep recession. Policy makers kept the benchmark overnight rate at 4.5% at their
monthly review, the first time they did not cut rates this year as they fight Mexico's most severe downturn since the
1930s. Mexico's economy shrank 10.3% in 2Q compared to a year earlier, its worst quarterly contraction on record.
But some signs of recovery can be seen. In addition, the peso (MXN), whose value collapsed last year, has
strengthened about 7% against the U.S. dollar (USD) since mid-July.
CNBV: Mexico's Banks Increase Profit 7.38% Amid Recession
August 18, 2009
According to the National Securities and Exchange Commission (CNBV), Mexico's private banks announced an
accumulated net profit of MXN 32.8 billion in the first seven months of the year amid a global economic downturn, a
figure 7.38% higher than what was reported in the like 2008 period. However, CNBV said the sector's accumulated
return on assets (ROA) and return on equity (ROE) were 1.2% and 12.72%, respectively, down from the 1.8% and
18.92% that were reported a year earlier.
Medina Mora Acquires One Million Citi Shares
August 21, 2009
According to press reports and the U.S. Securities and Exchange Commission (SEC), Manuel Medina-Mora,
President and CEO of U.S. bank Citi's Latin America division and Banamex subsidiary, acquired one million shares of
Citi at prices ranging between USD 3.19 and USD 3.61 apiece, following a March purchase of approximately 1.8
million notes at USD 1.24 per share.
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Business & Industry
Coca-Cola Company, Partners To Invest USD 5 Billion In Mexico
August 20, 2009
U.S. soft-drinks manufacturer Coca-Cola and its bottler partners in Mexico announced during the re-inauguration of a
juice-making plant in the colonial town of Tepotzotlan, in the state of Mexico (Edomex), plans to invest USD 5 billion
in the country over the next five years. Firm executives said the new commitment adds to the USD 5 billion the Coca-
Cola system has already invested in the country since 2004. Coca-Cola FEMSA, one of the world's biggest Coke
bottlers, is Coke's main partner in Mexico, the globe's biggest per-capita consumer of Coke soft drinks.
Alfa's Petrotemex Unit Issues Bonds In U.S. Market
August 19, 2009
Mexican industrial conglomerate Alfa announced that its Petrotemex unit, which manufactures plastics for bottles,
placed USD 200 million in bonds in the U.S. market. Proceeds of the issue will be used to pay off other Petrotemex
debt. The bonds are due 2014.
FEMSA Launches Wheat Beer In Mexico
August 20, 2009
Mexican brewer Fomento Economico Mexicano (FEMSA) announced that its Cerveceria Cuauhtemoc Moctezuma
subsidiary will launch its new Bohemia Weizen beer brand, the first wheat beer in Mexico, in a bid to introduce new
flavors and satisfy new demand. FEMSA said the beer will be distributed in Mexico City and the cities of Guadalajara,
Monterrey, Tijuana, Cancun, Puebla, Merida, Chihuahua, Ciudad Juarez, Queretaro, Veracruz, Oaxaca, Hermosillo,
Morelia, Aguascalientes and Toluca.
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Automotive
Chrysler Eyes Production Of Fiat's Subcompact 500 At Mexico Plant
August 17, 2009
Executives at U.S. automaker Chrysler Group said the firm is devising plans to produce Italian peer Fiat's
Subcompact-500 model at a Chrysler plant in Toluca, in the state of Mexico (Edomex). Sources close to the matter
noted that the Toluca plant, which currently makes the Dodge Journey crossover and PT Cruiser, is an attractive
home for the 500 because cars could be exported to South and Central America where the Fiat brand is popular. Fiat
acquired a 20% stake in Chrysler after the latter filed for bankruptcy and entered into agreements to give it access to
Fiat technology and platforms. Chrysler also has a truck assembly plant in Saltillo, in the state of Coahuila.
Volkswagen Mexico, Workers Reach Wage Accord, End Strike
August 22, 2009
The Mexican unit of German automaker Volkswagen reached a wage agreement with workers at its Puebla plant, in
the state of the same name, who agreed to lift a five-day strike after accepting a 3% wage increase. Volkswagen de
Mexico said production was set to resume on August 24. Under the agreement, reached in negotiations at the Labor
Ministry (STPS), the company will pay workers a 2% wage increase as of August 18, and an additional 1% starting
December 1. The settlement also includes a one-time payment of MXN 2,000 per worker. The union initially
demanded an 8.25% increase, then lowered that to 3% plus the one-time payment.
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Housing & Mortgaging
Infonavit Raises 2009 MBS Target To MXN 15 Billion
August 19, 2009
Federal government-run housing fund Infonavit announced that it could boost its sale of mortgage bonds this year to
MXN 15 billion from its original budget of MXN 10 billion, depending on market conditions. Infonavit has raised MXN
6.11 billion so far this year from the sale of its mortgage-backed securities, called Cedevis, the proceeds of which are
used to finance its lending operations. Infonavit sold MXN 1.5 billion in 22-year Cedevis earlier this month in its third
issuance of 2009. The bonds were denominated in inflation-indexed units (UDIs). Cedevis have become an
increasingly important source of funding for Infonavit, which accounts for more than half of the home loans made in
Mexico every year.
IADB Plans USD 1 Billion Credit Line For NAFIN Development Bank
August 19, 2009
The Inter-American Development Bank (IADB) said it expects to approve a USD 1 billion credit line for Mexico's
Nacional Financiera (NAFIN) development bank by December. The loan will help NAFIN provide financing to service
providers for state oil company Pemex. Loan proceeds will also pay for projects in the tourism and renewable energy
industries. In addition, the IADB plans to approve a USD 400 million loan in September for Mexican projects to fight
climate change. Earlier this month NAFIN exports development bank Bancomext said they seek to raise money
through an international bond sale or multilateral lenders.
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Construction & Infrastructure
Banobras Awards MXN 32 Billion In Funds For Infrastructure
August 19, 2009
According to Alonso Garcia Tames, head of Mexican infrastructure development bank Banobras, the institution has
awarded MXN 32 billion in funds for infrastructure projects in 1H. Garcia Tames said Banobras' investment portfolio
has grown approximately 43% and noted the resources it provides have been at the core of the country's
infrastructure development projects. Garcia Tames exhorted private banks to participate further in the government
programs.
Cemex To Limit Capex To USD 700 Million In 2010, USD 800 Million In 2011-2013
August 19, 2009
Mexican cement and building materials company Cemex announced during a conference call to discuss its USD 15
billion debt refinancing that it will limit capital expenditure (capex) to USD 700 million in 2010, raising the figure to
USD 800 million a year between 2011 and 2013. Cemex said that it expects government infrastructure spending to
begin having a positive effect on the industry after its worst recession in 80 years, but noted it expects to be able to
grow annual sales in high single digits in the next five years, while growing earnings before interest, taxes,
depreciation and amortization (Ebitda) in low teens, partly as a result of reduced capex.
SCT Awards MXN 339 Million Contract To Grupo Mexicano Desarrollo
August 20, 2009
The Communications and Transport Ministry (SCT) awarded a MXN 339 million contract to Mexican infrastructure
firm Grupo Mexicano de Desarrollo (GMD) for complementary works at the Durango-Mazatlan highway. SCT said
GMD will have to complete the project within 623 days, starting September 1. SCT said GMD will work in association
with partners Constructora, Arrendadora y Materiales (CAMSA) and Construcciones y Trituraciones.
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Retail
INEGI: June Retail Sales Down 5.1% From June 2008
August 21, 2009
According to the National Statistics Institute (INEGI), Mexican retail sales fell 5.1% in June when compared with the
like 2008 period but picked up from May, when the A/H1N1 influenza virus outbreak affected consumer spending.
INEGI said the drop was led by lower sales of durable goods, including domestic appliances, computers, cars and car
parts. June was the 10th straight month of year-on-year declines in retail sales, as the country struggles through its
deepest recession in decades.
Coppel Broadens Presence In Latin America, To Open Stores In Brazil
August 19, 2009
Mexican retailer Coppel announced plans to expand its presence in Latin America and said it will open four stores in
Brazil in 1Q 2010. The facilities will be located in the city of Curitiba, in the state of Parana, and added it has
summoned the first 60 Brazilian employees to be trained at the firm's stores in Mexico. Coppel's move is expected to
generate a total of 600 jobs in Brazil. Coppel elected the state of Parana due to its strategic position, sharing a border
with Paraguay and Argentina. In addition, Coppel added it has allocated USD 50 million to enter Argentina next year.
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Transportation
KCSM, Pacer Stacktrain, Puerta Mexico Enter Alliance
August 20, 2009
U.S. railway company Kansas City Southern's Mexico unit KCSM, U.S. door-to-door services provider Pacer
Stacktrain, which offers comprehensive intermodal and trucking services, and Mexican intermodal terminal Puerta
Mexico announced that they have entered a strategic alliance in a bid to broaden their services and meet the logistics
requirements of companies located in central Mexico, mostly those operating in the state of Mexico (Edomex).
Through the agreement the firms will be able to transport merchandise to terminals in the U.S. cities of Boston,
Philadelphia, Baltimore, Buffalo, Chicago, Atlanta, Charlotte, Los Angeles and Seattle; in the Canadian cities of
Toronto and Montreal; and in the Mexican cities of Monterrey, San Luis Potosi, Pantaco and Toluca.
Profeco Files Lawsuit Against Aviacsa
August 19, 2009
The Federal Consumer Protection Agency (Profeco), representing 1,308 passengers who were affected by the recent
grounding of Mexican low-cost airline Aviacsa by the Communications and Transport Ministry (SCT), has filed a
collective lawsuit for more than MXN 3.3 million against the firm. Profeco said it is awaiting the court's decision and
that it expects a precautionary embargo will be issued against Aviacsa's assets and accounts, so that its resources
will be allocated to reimburse and award indemnities to the affected customers.
SCT: Mexico's First Drawbridge To Start Operating In October
August 21, 2009
The Communications and Transport Ministry (SCT) announced that the "Albatros" drawbridge, which is the first of its
kind in Mexico, will start operating in October at the Lazaro Cardenas port, in the state of Michoacan. SCT said the
final cost of the project amounted to MXN 684 million. Albatros will feature four large lanes and will be directly
connected to the Siglo XXI highway, which connects the states of Michoacan, Morelos, Guerrero and Puebla.
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Telecommunications & Technology
Telmex Prepays USD 1.3 Billion In Debt
August 17, 2009
Telmex announced that it prepaid a USD 1.3 billion tranche from a syndicated loan, meeting its most pressing dollardenominated
debt commitment for the rest of 2009. Telmex had obtained a USD 3 billion syndicated loan in August
2006. The USD 1.3 billion portion was set to expire in October. The other two tranches, for USD 1 billion and USD
700 million, are due in 2011 and 2013, respectively.
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Media & Entertainment
Dish Mexico Aims For 1 Million Customers
August 20, 2009
Mexican pay-TV provider Dish, a joint project involving the MVS-Echostar and Telmex strategic alliance, and which
has forced rivals like Televisa to cut prices, expects to double its clients by year-end as it awaits a government
decision that may allow it to expand into the Internet and phone markets. If the decision is favorable, it said it could
invest up to USD 700 million to upgrade its network to include those services. Around half a year since its debut, Dish
Mexico has more than 500,000 customers, driven by its MXN 149 basic package. Dish executives said they "are
going to reach 1 million clients by year-end" and that they "want national coverage by December."
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Farming & Agriculture
Citrus Pest Infests Trees In Mexico; Disease Threatens California's Industry
August 18, 2009
Leaders of California's USD 1.6 billion citrus industry said that a disease that was killing orchards worldwide was now
rooted in Mexico, and experts warned that it was headed toward that U.S. state. Citrus greening disease has infected
citrus trees on Mexico's Yucatan Peninsula, spread by an infestation of the Asian citrus psyllid. According to a UC
Riverside entomologist and director of the Lindcove Research and Extension Center, Mexico "is infested with the bug
and they will gradually move the disease across the country." U.S. and Mexican authorities are working together on
solutions.
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Hospitality & Tourism
SECTUR: Mexican Tourism Industry Might Lose USD 2.5 Billion In 2009
August 21, 2009
According to the Tourism Ministry (SECTUR), Mexico's tourism industry could lose as much as USD 2.5 billion in
revenue this year, as the global economic downturn and the recent A/H1N1 influenza outbreak hit the industry
severely. In addition, SECTUR noted that the increased levels of violence in some parts of the country have
dissuaded visitors from traveling to Mexico. Nevertheless, SECTUR added that after a sharp drop in hotel occupancy
in the weeks following the sanitary emergency to prevent contagion of influenza, the sector recovered with a 65%
increase in occupancy.
Washington Adds State Of Michoacan To Mexico Travel Warning
August 20, 2009
The U.S. Department of State (DOS) is warning U.S. citizens to avoid visiting the Mexican state of Michoacan, where
drug cartel members killed 18 federal agents last month and where crime is soaring. The alert does not recommend
against traveling to Mexico, but says recent violence has prompted the U.S. Embassy to urge Americans to delay
unnecessary travel to Michoacan and the border state of Chihuahua, which was already on the travel warning list.
DOS said U.S. citizens traveling in those areas should exercise extreme caution.
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Economy
INEGI: Economy Contracts Record 10.3% In 2Q
August 20, 2009
According to the National Statistics Institute (INEGI), Mexico's economy plunged 10.3% in 2Q, its deepest contraction
on record, as withering exports forced factories to slash production and cut jobs. The year-on-year decline in GDP
was the largest decrease in quarterly GDP in records dating to 1981. In addition, experts from the Centennial Group
Latin America and Banamex, U.S. Citigroup's Mexico unit, said the economy is expected to shrink about 7% this year.
The result was worse than the 6.8% drop in previous surveys, but in line with the Bank of Mexico's (Banxico) most
recent forecast of a contraction in GDP of between 6.5% and 7.5%. However, according to certain analysts and
officials, the numbers indicated that some of the worst declines may have passed for Mexico.
IADB Urges Government To Implement Fiscal Decentralization
August 20, 2009
The Inter-American Development Bank (IADB) urged the government to implement a fiscal decentralization to boost
economic growth in a more solid way and reduce the incidence of external factors and the international economic
environment on the domestic economy. IADB noted that only 7% of public income is obtained through local
contributions and that the remaining 93% are federal transfers. IADB said fiscal redistribution should be taken into
consideration by the next legislature if the country's competitiveness is to be achieved.
Slim: Government Should Lower Public Current Expenditures, Increase Employment
August 20, 2009
Mexican billionaire Carlos Slim suggested during the signing of an accord to support freedom of speech and
expression in Mexico that the federal government should reduce public current expenditures to allocate further
resources to social development. In addition, Slim said that creating further employment is more urgent than a fiscal
reform to support Mexican families and achieve growth, adding that credits should be awarded mostly to reduce
SME's "death rate," as they create more jobs and are a core engine for development.
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Border & Migration
U.S. ICE Discloses Further Detainee Deaths
August 18, 2009
U.S. immigration officials said they discovered records of 11 previously unreported deaths of detainees in government
custody, prompting a review by the Immigration and Customs Enforcement agency (ICE) "to ensure the integrity of
ICE's records on detainee deaths." The new cases involved eight men from Cuba, one from Mexico and one from
Ecuador, bringing to 104 the number of people who have died while in ICE custody since October 2003. ICE initially
disclosed little information beyond the men's names, nationalities and dates of death, but more data was later
released by officials at the Department of Homeland Security (DHS), which oversees ICE.
Hispanics In The U.S. Support Health Insurance Reform
August 18, 2009
Several organizations of Hispanics in the U.S. have shown support for the controversial health insurance reform
President Obama is seeking to provide coverage to about 47 million people in the U.S., including 15 million Latinos.
Organizations such as the National Alliance for Hispanic Health say Latinos are more vulnerable to chronic diseases
as an inherent feature of the ethnic group, but are also at risk as they have less access to preemptive care services.
U.S. And Mexico Start Voluntary Repatriation Program
August 23, 2009
The U.S. government and Mexico have begun flying illegal migrants caught in the Arizona desert back to Mexico
under a voluntary repatriation program. Mexico's Foreign Affairs Ministry (SRE) said the twice-daily Tucson-Mexico
City flights began earlier this month. SRE said that the annual summer program will run through September 28. The
U.S. federal government launched the program in summer 2004 after years of record-setting migrant deaths along the
state's border with Mexico. Authorities say the goal is to save lives and discourage repeated crossings by transporting
migrants closer to their homes in Mexico, rather than simply deporting them across the border.
SRE Vows To Weed Out Consulate Corruption After Passport-Scam Inquiry
August 16, 2009
According to complaints by Mexican citizens and U.S. press reports, Consul General Enrique Hubbard, the Mexican
consul for northern Texas, faces allegations that he allowed staff members to personally profit from selling passportsize
photos and tolerated employees who skimmed money from passport fees. The Foreign Affairs Ministry (SRE)
said the Mexican consul in Texas will be reassigned amid the investigation and as part of the department's normal
rotation rules. SRE did not disclose whether Hubbard himself was being investigated in the alleged passport scheme
or reveal his new assignment. Mexican prosecutors are investigating the irregularities while Mexican immigrant
leaders in Dallas have called for a national investigation of Mexican consulates across the U.S.
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Politics
Carlos Pascual Sworn In As U.S. Ambassador To Mexico
August 23, 2009
Carlos Pascual was sworn in as the new U.S. Ambassador to Mexico, replacing Tony Garza. Mr. Pascual, who was
approved for the post by the U.S. Senate earlier this month, received the oath of office from the U.S. Secretary of
State Hillary Clinton.
President Calderon Endorses Law Limiting Public Servants' Salaries
August 21, 2009
President Calderon signed a measure into law that establishes upper limits on the public functionaries' wages.
Calderon said the government must set an example and undergo sacrifices itself before asking Mexican families to do
so if it expects to resolve the problems the nation faces. The new law bars any public servant from earning more than
the president, including heads of regional governments, and obliges ministries and dependencies to report the pay of
their top staffs. Calderon said remuneration will be public and open to scrutiny by citizens. The law had been passed
by Congress after reports alleging excessively high income of certain officials.
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Justice, Safety & Crime
President Calderon: There Will Be No U.S. Military On Mexican Soil
August 18, 2009
President Calderon reaffirmed during an interview in Brazil that there is absolutely no possibility of having U.S. troops,
military bases or operations of any kind on Mexican soil, and that an agreement between Mexico and the U.S. to
address drug trafficking cannot, under any circumstance, be inspired by the U.S.-Colombian agreement to fight drug
cartels in that South American country. Calderon said that rather than in military help, the solution lies in a significant
reduction of the U.S.'s demand for narcotics.
Mexican Rights Report Sent To Congress; Further Aid Approved
August 18, 2009
The Obama Administration has sent Congress a favorable report on Mexico's human rights record that allowed the
release of USD 80 million in U.S. aid to help the country fight drug traffickers. Spokespeople from the DOS said part
of the document stated that "the Mexican government has embarked on a major effort to reform and overhaul its
justice system— including major reforms affecting police, prosecutors and the way the legal system functions."
Meanwhile, the Office of the United Nations High Commissioner for Human Rights (OHCHR) in Mexico said it signed
an agreement with the Mexican army to oversee its performance on respecting and guaranteeing human rights, amid
a sixfold increase in human rights complaints against the Mexican military between 2006 and 2008. However,
Mexico's National Human Rights Commission (CNDH) said it would be irresponsible and "insane" to withdraw the
army from the fight against the cartels.
Federal Government Publishes National Security Plan In DOF
August 19, 2009
The federal government announced that it published in the official gazette (DOF) the National Security Plan 2009-
2012 to address organized crime. The plan calls for enhanced coordination between security agencies to create
effective active and passive intelligence and counterintelligence activities, supported by state-of-the-art technologies
and based on the promotion of a civil and military doctrine to identify precisely and in an opportune manner the
threats posed to national security.
U.S. Issues New Charges For Top Mexican Drug Lord, Others
August 20, 2009
The U.S. announced that it has filed new charges against Mexico's top drug lord Joaquin "el Chapo" (shorty) Guzman
and other drug cartel leaders for smuggling billions of dollars in cocaine (nearly 200 tons) and large amounts of heroin
into the U.S. between 1990 and the end of last year, although they remain at large. U.S. officials announced the
charges in New York and Chicago against 43 people from both the U.S. and Mexico. The indictment accuses
Guzman, along with Ismael Zambada Garcia and Arturo Beltran Leyva, of being among the most powerful drug
traffickers in Mexico. Also indicted was Vicente Carrillo Fuentes, the alleged head of the Juarez drug cartel. If
captured and convicted, all but one of the defendants face up to life in prison. Guzman escaped from a high-security
prison in Mexico in 2001 in a laundry van shortly before he was due to be extradited to the U.S.
Mexican Drug Traffickers Tied To California Fire; 30,000 Marijuana Plants Found
August 17, 2009
U.S. Forest Service spokespeople said wildfire investigators in California are looking for marijuana growers tied to a
Mexican drug cartel whom they suspect ignited a blaze that has charred more than 87,000 acres of a U.S. national
forest. The La Brea Fire, which erupted August 8 in the Los Padres National Forest in the remote Santa Barbara
County mountains northwest of Los Angeles, is believed to be the first major wildfire in the state caused by drug
traffickers, as some 30,000 marijuana plants were seized from a pot farm run for a Mexican drug cartel in the area.
Consulta Mitofsky: 75% Of Mexicans Fear Being Kidnapped
August 19, 2009
According to the "Citizens Perception on Mexico's Security" opinion poll conducted by Consulta Mitofsky, 75% of
Mexicans fear being kidnapped and 59% are afraid of being a victim of armed robbery. The survey's results noted
that wealthier Mexicans report more crimes than lower-income households.
Mexico Decriminalizes Small-Scale Drug Possession For Personal Use
August 20, 2009
Mexico enacted a controversial law decriminalizing possession of small amounts of marijuana, cocaine, heroin and
other drugs for personal use, while encouraging free government treatment for drug dependency. The law sets out
maximum "personal use" amounts for drugs, also including LSD and methamphetamine. People detained with those
quantities will no longer face criminal prosecution. Anyone caught with drug amounts under the personal-use limit will
be encouraged to seek treatment, and for those caught a third time, treatment is mandatory—although the law does
not specify penalties for noncompliance. Mexican authorities said the change just recognized the long-standing
practice here of not prosecuting people caught with small amounts of drugs that they could reasonably claim were for
personal use, while setting rules and limits.
Hitmen Kill Leading State Congressman
August 20, 2009
Authorities reported that gunmen killed Armando Chavarria, head of the legislature of the state of Guerrero, outside
his house in a suspected drug gang attack. President Calderon condemned the attack and ordered federal
investigators to help track down the killers. Chavarria, a member of the leftist Democratic Revolution Party (PRD), had
been tipped to run for governor in 2011.
U.S. Researchers: 90% Of USD Bills Have Traces Of Cocaine
August 20, 2009
U.S. researchers presented the results of tests reinforcing previous findings that 90% of paper money circulating in
U.S. cities contains traces of cocaine, although scientists say the amount of cocaine found on bills is not enough to
cause health risks. Researchers said most of the bills containing the traces of the narcotic are found in the U.S.'s
largest, most populated cities.
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Health & Science
SSA Seeking USD 400 Million Loan From WB To Address Influenza Resurgence
August 18, 2009
The Health Ministry (SSA) said it is seeking to secure a USD 400 million loan to guarantee enough funds to address a
very possible resurgence of the A/H1N1 influenza virus next winter. The resources would be destined for the
modernization of the Epidemiologic Surveillance System's databases, and for vaccines, treatments and to supply a
strategic reserve of drugs. At present, SSA is negotiating better medicines' prices with international laboratories and
said it has allocated nearly MXN 1.6 billion to purchase 20 million additional vaccines.
SSA Negotiates Purchase Of 10 Million A/H1N1 Vaccines From China
August 22, 2009
Health Minister Jose Angel Cordova Villalobos announced that authorities are currently negotiating the purchase of
10 million vaccines against A/H1N1 influenza from China. SSA said Mexico has already acquired 20 million doses it
plans to apply before December and that it will buy the Chinese-made vaccines if they prove to be effective.
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Environment
Mexico City Passes Law Forbidding Distribution Of Plastic Bags At Stores
August 22, 2009
Mexico City has forbid supermarkets and other stores to supply free plastic bags to their clients, as part of a new
Solid Waste Law, prompting commercial establishments to furnish only biodegradable bags.
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Other
President Calderon Congratulates NASA Astronaut With Mexican Origins
August 22, 2009
President Calderon congratulated Jose Hernandez, a NASA astronaut of Mexican descent, for succeeding in entering
the institution, and he invited him to dinner when the astronaut returns to earth. President Calderon told Hernandez
that he is "very happy that he is putting Mexico's name in space." Hernandez was born in California and is the son of
Mexican migrant workers. He spent his childhood in the U.S. and the western Mexican state of Michoacan,
Calderon's home state. Hernandez was set to rocket into orbit in the space shuttle Discovery on Tuesday, August 25,
but the launch was postponed.
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