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Energy
President Calderon Issues Decree Closing Power Utility LyFC
October 11, 2009
President Calderon issued a decree closing down the important but inefficient and financially strapped power
distribution company Luz y Fuerza del Centro (LyFC), and sent more than 1,000 riot police to take over operations of
the firm, setting the stage for a showdown with the powerful SME electricians' union and its political and labor allies.
Calderon's decree said that LyFC's costs were almost twice its income from energy sales, and that last year the
company lost 32.5% of the energy it purchased from Mexico's main power generator, the Federal Electricity
Commission (CFE). From now on, CFE will be in charge of LyFC's operations. Before the decree was published,
electricity workers had marched to protest alleged government interference in the SME, while private sector groups
stepped up their complaints about the service they receive from the state-run power sector. Private sector groups,
including industry chambers and the country's retail association (ANTAD), welcomed the decision, while the union
representing 44,000 LyFC workers and 22,000 retirees, along with leftist political groups, prepared street protests and
asked Congress to help them reverse the government's decision. However, administration officials said that as many
as 10,000 fired workers could be hired back by the new management, while the rest would be compensated with as
much as 33 months' pay.
CNH Wants To Halt Key Chicontepec Oil Project
October 8, 2009
Mexico's recently formed oil watchdog, the National Hydrocarbons Commission (CNH), said that it was in the process
of submitting its recommendations to Pemex so that the latter halts new contracts at its key Chicontepec oil field, but
the state-owned company said that it could not abandon the project. The final decision will be taken by Pemex. The
firm has spent more than USD 3.4 billion on Chicontepec, whose large reserves promised to lift Mexico's oil output
from near 20-year lows, but output has disappointed. CNH said that the lower-than-expected output is due to a lack of
adequate exploitation techniques and that oil extraction at Chicontepec should be suspended temporarily. In addition,
the company's board will debate whether to suspend investments in the USD 11.1 billion Chicontepec project during
an upcoming meeting.
Energy Experts: Slim Seeks To Become Oil Giant
October 5, 2009
According to experts and consultants from the energy sector, Mexican billionaire Carlos Slim might be seeking to
further enlarge his oil firm CICSA and broaden his participation in the oil market through new acquisitions in order to
become an oil giant in upcoming years. Last month, CICSA announced that it would acquire a 60% share in the
Mexican unit of U.S. oil firm Bronco Drilling for USD 30 million. In addition, CICSA purchased a 9.2% share in
Houston-based drilling company Allis Calmers Energy last February.
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Mining
Piero Sutti Finds Massive Lithium, Potash Deposit In Mexico
October 9, 2009
Mexican mining company Piero Sutti announced that it found a massive deposit of lithium and potash in an area
comprising the states of Zacatecas and San Luis Potosi, a discovery that could lead Mexico to become one of the
world's leading producers of those minerals. The nearly 40,000-hectare deposit—the first to be located in Mexico and
possibly one of the world's largest—could contain some 80 million tons of lithium- and potash-bearing earth with a
concentration of 750 grams of lithium and 25 kilograms of potash per ton. Sutti added that Canadian and U.S. experts
have confirmed the presence of the minerals at the deposit and that Sutti owns a concession to develop the deposit.
Initial investment could exceed USD 200 million. The firm noted that there has been a 500% increase in demand for
lithium over the past three years.
Canada, U.S. Invest In Mines In Chihuahua
October 9, 2009
Canadian mining companies Agnico-Eagle, Dolores of Minefinders and U.S. peer Coeur d'Alene announced that they
are developing millionaire projects in the gold and silver belt of the Sierra Madre Occidental, in the state of
Chihuahua. Joint investment in the projects amounts to USD 787 million and will create 1,738 direct jobs and over
4,000 indirect jobs in the region.
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Trade & Investment
SE: Mexico Asks WTO To Settle Dispute Over U.S. COOL Rules
October 10, 2009
The Ministry of Economy (SE) said that it is asking the World Trade Organization (WTO) to settle a dispute over U.S.
country-of-origin labeling rules (COOL) that are affecting exports of some Mexican products bound for the United
States, mostly livestock. According to Mexico's Agriculture, Livestock and Rural Development Ministry (SAGARPA),
previous rules allowed meat from Mexican-born cattle raised and slaughtered in the United States to qualify as being
of U.S. origin. New rules approved in 2008 no longer allow that labeling, and Mexico said such development is
against international trade rules. The U.S. Department of Agriculture (DOA) said the new labeling still provides
"information to consumers in a manner consistent" with WTO rules.
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Banking, Insurance & Finance
Grupo Actinver Closes Prudential Acquisition
October 6, 2009
Mexican financial services firm Grupo Actinver announced that it has completed the acquisition of Prudential Financial
local asset management business for an undisclosed amount. The deal, which included Prudential's mutual fund
operations and a small bank, boosts Actinver's mutual fund assets to about MXN 60 billion managed on behalf of
more than 200,000 clients. Actinver, whose operations include a brokerage house, said that it plans to add banking
services to the portfolio of asset management products it currently distributes through its 71 offices. In addition,
Actinver said that it is planning to hold an initial public offering (IPO) in next year's 1Q in an effort to set a precedent
for IPOs and generate more underwriting business.
Banorte's Unit To Seek Capital Increase Approval
October 7, 2009
Banco Mercantil del Norte, a unit of Grupo Financiero Banorte, said that it called a shareholders' meeting on October
23 to approve a capital increase. Spokespeople for the banking group said the capital increase is related to the
International Finance Corporation's (IFC) proposed USD 150 million investment for a 5% stake or 4.8 billion shares in
the bank. The IFC investment will strengthen Banco Mercantil del Norte's capital base. The IFC, an arm of the World
Bank, will also contribute its experience in the development of corporate practices and models of social and
environmental responsibility.
Analysts: Investing Afores' Funds In Infrastructure To Provide Better Results
October 5, 2009
According to financial analysts, President Calderon's proposal to make pension fund managers' (Afores) investment
system more flexible might enhance infrastructure work in the country and would lead to higher yields in workers'
savings by investing them in more profitable projects. Calderon's proposal would also allow Afores to obtain better
results by placing the funds in structured assets, benefiting the Mexican Stock Exchange operator BMV and large
infrastructure firms listed there, such as Carso Infraestructura y Construccion (CICSA); Grupo Mexicano de
Desarrollo (GMD); Empresas ICA; Impulsora del Desarrollo y el Empleo en America Latina (IDEAL) and Promotora y
Operadora de Infraestructura (Pinfra).
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Business & Industry
Gruma Opens Plant In Australia, Expects Sales Of As Much As USD 50 Million
October 5, 2009
Mexican corn flour and tortilla maker Gruma announced that it opened a new food processing plant in Australia that is
expected to generate sales of between USD 45 million and USD 50 million this year. Gruma said that it invested USD
60 million to build the plant, which has an installed annual capacity of 37,000 tons of tortillas, flat breads and other
products. Gruma said the plant will serve its clients in the Oceania region.
Kimberly-Clark De Mexico Sells MXN 2.7 Billion In Bonds
October 6, 2009
Kimberly-Clark de Mexico, the local subsidiary of U.S. consumer products company Kimberly-Clark, said that it sold
MXN 2.7 billion of bonds on the local capital markets. Kimberly Clark specified that it placed MXN 2.3 billion in fiveyear
bonds at a spread of 95 basis points over the benchmark 28-day TIIE interbank rate, which yielded 4.9150%. It
also sold MXN 400 million in 10-year bonds at a fixed rate of 9.65%.
Whirlpool To Invest MXN 55 Million In Mexico
October 9, 2009
U.S. appliance manufacturer Whirlpool announced that it will invest USD 55 million in a new facility at its complex in
Apodaca, in the state of Nuevo Leon. The new facility, which is destined to produce refrigerators for the domestic
market and for exports, is slated to start operating in 2010 and expected to create approximately 1,100 new jobs.
Whirlpool currently has 8,000 employees in Mexico.
GModelo Says It Is Not Concerned About FEMSA's Possible Merger
October 7, 2009
Executives at Mexican brewer Grupo Modelo (GModelo) said that an eventual merger of local rival Fomento
Economico Mexicano's (FEMSA) beer unit with a foreign peer would certainly boost competition in both the domestic
and international markets but added that they are not concerned about the resulting outlook. FEMSA recently
confirmed that it is in talks with several foreign brewers, such as Britain's SABMiller and Heineken from the
Netherlands, about a possible merger or sale of beer operations.
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Automotive
AMDA: Automobile Dealers Pessimistic About 2010 Sales
October 5, 2009
According to the Mexican Association of Auto Distributors (AMDA), Mexico's domestic auto sales are not expected to
recover in 2010 from their deep slump this year, as local car prices will likely rise due to weakness in Mexico's
currency. Sales of new vehicles in Mexico fell 31% year-on-year in the first eight months of 2009 to 471,658 units, as
the local economy suffered its worst recession in decades. The drop was similar to that seen in the United States,
where auto sales fell 28% in the January-August period. But the U.S. market has shown signs of life in recent months
due to the buying incentive provided by the government's "cash for clunkers" program. Mexico's vehicle sales,
meanwhile, remain entrenched in the downturn, having fallen by more than 31% year-on-year in each month since
April. AMDA expects sales to end this year down 30% from 2008.
Ford To Produce Fiesta Model In Mexico, "Rescues" Cuautitlan Facility
October 6, 2009
U.S. automaker Ford Motors announced that it prevented the closure of its Cuautitlan plant, in the State of Mexico
(Edomex), after rumors suggested it was going to be shut down, and added that it will produce the new Fiesta model
there. Ford said that output from the first phase of production will be destined to the United States and the domestic
markets. Last year, executives at Ford announced a USD 3 billion investment in Mexico, of which a part was destined
to the Cuautitlan plant. Production of the Fiesta is expected to kick off in 1Q 2010, reach 180,000 units during the first
year and create about 2,000 jobs.
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Retail
Gigante Acquires Retailer With MXN 750 Million In Annual Sales
October 9, 2009
Mexican retailer Grupo Gigante announced that it has acquired a mini-market chain with annual sales of just over
MXN 750 million. Gigante said that it paid a multiple of about 0.06 times the company's 2008 sales. The deal includes
104 stores in 17 states that operate under the Tiendas Super Precio brand, inventory, equipment and leases. Last
year, Gigante divested its stake in a local joint venture with Radio Shack and sold its supermarket business, which
included about 200 stores, to domestic rival Organizacion Soriana. The firm's current operations cover real estate,
restaurants, discount stores and a joint venture with Office Depot.
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Transportation
Government, Private Companies Increase Investment In Railroad Sector
October 6, 2009
According to official figures, governmental and private investment in the country's railroad sector increased 18%
during 1H to MXN 2.55 billion, up from the MXN 2.36 billion that was registered in the like 2008 period. Of the
mentioned amount, MXN 1.13 billion was public investment while MXN 1.37 billion were private funds.
Aeromexico Eyes Alliances To Improve Efficiency
October 7, 2009
Mexican airline Aeromexico said that it was interested in stock deals with local and foreign players to improve
efficiency and better address the global economic downturn. According to several experts, Aeromexico and rival
Mexicana de Aviacion, both hit by the world recession and competition from low-cost domestic carriers, may not
survive unless they merge together or with other players. However, according to press reports, Mexicana has already
been discarded as a partner as has low-cost carrier Volaris, following the decisions of the firms' executives to refuse
proposals due to different corporate objectives.
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Telecommunications & Technology
Cofetel Drafts New Rules To Attract MVNOs
October 8, 2009
The Federal Telecommunications Commission (Cofetel) said that it is drafting new rules that will make it easier for
mobile virtual network operators (MVNOs) to do business, with a view to boosting competition in the wireless industry.
Cofetel said the rules, which seek to streamline the authorization process and address issues such as number
portability and customer service, would probably take effect next year. A MVNO typically rents unused capacity from
mobile network operators and resells it to consumers in the form of airtime and data services under its own brand.
MVNO rules are one of several measures authorities are looking at, including the auction of wireless spectrum early
next year, to bring more competition to an industry that is largely in the hands of two players.
Business Week: America Movil Among World's 40 Best Companies
October 7, 2009
According to Business Week magazine's ranking, Mexican mobile telephony provider America Movil was the only
Mexican-based firm among the world's top 40 companies in 2009, due to a sustained annual increase in sales of 20%
during the past five years. Sources say that America Movil ranked 32nd, above Spanish rival Telefonica, which is
currently struggling to draw clients from America Movil in several Latin American states. Business Week's ranking's
top three firms were Nintendo, Google and Apple.
Cofetel: Televisa Units Draw Fixed Telephony Clients; Telmex Loses Customers
October 8, 2009
According to the Federal Telecommunications Commission (Cofetel), some of Mexican broadcaster Televisa's units
gained as many as 24,582 fixed telephony clients, while market leader Telmex lost 48,929 customers during 3Q due
to the recent implementation of number portability. Televisa obtained 31.4% more clients in 3Q compared to figures
from the previous quarter, while Telmex's losses were 12.5% higher than what was reported in 2Q.
MVS, Telmex Could Strengthen Alliance Against Rivals Through Dish Project
October 5, 2009
According to experts and analysts from the telecommunications sector, Telmex could expand its services portfolio
through the purchase of shares or assets from TV company MVS if competition authorities, the Communications and
Transport Ministry (SCT) and other governmental regulators approve and if certain legislation is passed. Currently,
Mexican pay-TV provider Dish, a joint project involving the MVS-Echostar and Telmex strategic alliance, is growing
and has drawn thousands of clients from rivals like Televisa and its Sky pay-TV subsidiary and has forced them to cut
prices. Executives at Sky said that MVS has already agreed to sell Dish to Telmex, strengthening their alliance and
giving more power to billionaire Carlos Slim's firm.
Argentinean Entrepreneur Seeks Alliance With Carlos Slim To Acquire Telecom
October 6, 2009
Argentinean entrepreneur Edurado Eurnekian, president of conglomerate Corporacion America, said that he is
seeking an alliance with Mexican billionaire Carlos Slim to purchase Argentinean telco Telecom Argentina. The firm is
owned by Telecom Italia, which is in the process of selling it, as it is being probed for monopolist practices. The
operation is valued at some USD 500 million, and Eurnekian said he is seeking funds from Slim's Grupo Financiero
Inbursa to acquire the company. He added that negotiations have already started and are at a rather advanced stage.
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Farming & Agriculture
U.S., Mexico Enter Agriculture And Foods Commercialization Partnership
October 7, 2009
U.S. and Mexican Agriculture Ministers Tom Vilsack and Francisco de Mayorga, respectively, announced that they
agreed to enter into an agriculture and foods commercialization partnership and added that they will increase
technical and sanitary cooperation between the two countries. The Ministers already agreed on a lasting work
schedule and will hold a meeting in Washington in November.
SAGARPA Awards Permits To Produce Transgenic Corn
October 7, 2009
The Agriculture, Livestock and Rural Development Ministry (SAGARPA) announced that it awarded permits to some
companies to produce transgenic corn in Mexico. SAGARPA said, however, that it did not approve all 31 requests
submitted by farming firms Monsanto, Pioneer, Down, Agroscience and AgroBio to sow genetically modified corn in
five states. AgroBio executives said that they will demand explanations based on scientific reasons for having some
permits refused and that they might enter debates and take legal action if the answers seem unjustified. Meanwhile,
the Ministry of Environment and Natural Resources (SEMARNAT) is expected to issue its decisions on the matter
shortly.
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Hospitality & Tourism
Coastal Cities' Officials Draft Plan To Create Mexico-U.S. Tourist Police
October 6, 2009
Officials in some coastal cities in the state of Baja California are drafting plans for a bilingual police force that caters to
U.S. tourists headed south of the border. The plan, announced at San Diego City Hall, is to create a joint Mexican-
U.S. force that patrols a 50-mile tourist corridor from Tijuana through Playas de Rosarito to Ensenada. Tourism in the
region has been battered by drug-fueled violence, congested border crossings and a weak economy. San Diego
police officers will help train the officers. Details were not disclosed, but the mayor of Tijuana said the joint force could
feature 350 officers.
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Economy
The Economist: Mexico's Development Estimates Are Worst In Latin America
October 7, 2009
According to The Economist's Latin America Director Justine Thody, Mexico's development estimates are the worst in
the region through 2011, with an expected 2.2% growth during that year and 2.8% in 2010, compared to the average
3% for the rest of Latin American countries during the next five years. Thody added that the government's current
programs won't be enough to maintain sustained growth and recommended that deep structural reforms be made.
Meanwhile, Finance and Public Credit Minister Agustin Carstens said that he is confident that rating agencies will
keep Mexico's debt grading steady and that investment there will remain unchanged despite recent governmental
proposals to increase taxes. In addition, Mexico's Institute of Finance Executives (IMEF) said that its index rose to
51.6 in September from 51.5 in August and 50.2 in July, reaching its highest level in a year. The figures led the
institution to say that the worst part of the recession is over but that growth is not ensured.
Congress Opposes 2010 Federal Budget Proposal
October 3, 2009
Mexico's divided Congress unanimously opposed the budget for 2010 proposed by the Executive Branch that would
have included an economic package to "fight poverty," imposing a generalized 2% tax increase to consumer goods.
The proposed tax increase was massively criticized by the private sector, unions and the opposition. However, some
key officials from the administration, such as Finance and Public Credit Minister Agustin Carstens and Guillermo
Ortiz, governor of the central bank (Banxico), have criticized Congress's rejection of the plan and said that more taxes
are necessary and will not hurt the country's economic recovery.
President Calderon: September's Job Creation Rate Is Highest Since April 2008
October 6, 2009
According to President Calderon, September registered the highest job creation rate since April 2008, with 61,000
new posts reported by the national Social Security Institute (IMSS). Calderon added that September was the fourth
straight month to register positive job creation rates. Nevertheless, IMSS said that Mexico has lost 540,213 jobs
between September 2008 and September 2009, a 3.74% reduction year-on-year. In addition, the National Statistics
Institute (INEGI) said that unemployment figures for August surpassed levels seen in 1995, when Mexico was
submerged in its last economic crisis.
INEGI: Consumer Confidence Remains Nearly Unchanged In September
October 6, 2009
According to the National Statistics Institute (INEGI), Mexico's consumer confidence changed very little in September
when compared with August figures, as incipient signs of an economic turnaround have yet to translate into real gains
for Mexican households. INEGI said its consumer confidence index edged up to 81.9 in September from 81.5 in
August. The reading was lower than September 2008, when the index was 88.6. Consumers were more upbeat than
in August about their current household situation, as well as their ability to purchase big-ticket items such as furniture
and electronic appliances. They were more pessimistic about their household economic prospects, as well as the
country's current and future economic situation.
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Border & Migration
U.S. Ambassador To Mexico: Migration Reform Procedures To Start Next Year
October 7, 2009
U.S. Ambassador to Mexico Carlos Pascual said that work on U.S. migration reform will start by early 2010. However,
Pascual said that in order for the reform to be drafted, discussed, voted and eventually passed, the current debate on
the U.S. social security system must be resolved.
TRAC: U.S. Tries 68,000 Immigrants In Nine Months
October 7, 2009
According to a report by data-gathering, data-research and data-distribution organization Transactional Records
Access Clearinghouse (TRAC) at Syracuse University, the U.S. has tried approximately 68,000 immigrants, most of
them Mexican, between January and September this year. TRAC said that if the trend continues, trials by the end of
the year could surpass 90,000, an unprecedented figure. TRAC added that immigrants' trials have been on the rise
since 2007 and increased by 125% between that year and 2009.
CNDH: U.S. Deported 90,000 Underage Mexican Immigrants In 2008
October 7, 2009
According to a report by the National Human Rights Commission (CNDH), U.S. immigration authorities deported as
many as 90,000 underage Mexican nationals who crossed illegally into the U.S. In addition, the report noted that
every year some 50,000 Mexican minors and about 10,000 underage Central Americans try to enter the U.S. without
proper documentation. CNDH also noted that 47 minors died between 2002 and 2003 while trying to reach the U.S.
The report added that U.S. deportations of minors to Mexico are almost always done following bilateral agreements.
U.S. To House Detained Migrants In Converted Hotels; Improves Treatment
October 6, 2009
The U.S., which has often been criticized by foreign governments and human rights associations for holding illegal
immigrants in overcrowded and poorly run jails, announced plans to convert hotels to detain some noncriminal
immigrants. U.S. Homeland Security Secretary Janet Napolitano said illegal immigrants ranging from criminals to
newly arrived asylum seekers would be held in different facilities according to the risk they pose. About 32,000
immigrants to the U.S. are held at any given time in about 350 local jails and private prisons, which have been
criticized for providing poor medical care and oversight. In addition, further measures to improve treatment given to
noncriminal immigrants are being implemented by the U.S.
BP: Arrests Of People With Chinese Origins Surge At U.S.-Mexico Border
October 5, 2009
According to the U.S. Border Patrol (BP), there has been an almost tenfold spike in arrests of clandestine migrants
from China in the southern Arizona desert despite an overall drop in arrests of illegal crossers at the U.S.-Mexico
border. The Border Patrol in the Tucson sector—the busiest smuggling corridor on the international line—has caught
at least 261 Chinese crossers this year, compared with an average of 32 during the past four years. This year the
Tucson sector that encompasses the Nogales station recorded 226,000 apprehensions—a 24% decline that reflects
the impact of the U.S. economic crisis and tougher enforcement. The majority of those arrested were Mexicans.
SEGOB: 1.5 Million Children Of Mexican Immigrants In The U.S. Lack Health Insurance
October 5, 2009
According to Mexico's Ministry of Interior (SEGOB), nearly 1.5 million children of Mexican immigrants in the U.S.,
even those born there, have problems obtaining proper medical care and health insurance. SEGOB said also that
there is a broad inequality in the U.S. regarding health care supplied to a large part of the population under 18.
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Politics
President Calderon Congratulates President Obama On Nobel Prize Award
October 9, 2009
President Calderon congratulated U.S. counterpart Barack Obama for his nomination to be awarded the 2009 Nobel
Peace Prize earlier this month. According to official figures, President Calderon sent a letter to President Obama to
congratulate him in the name of the people of Mexico and himself and to praise his efforts oriented to the promotion of
international diplomacy and cooperation between nations.
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Justice, Safety & Crime
Authorities: U.S. Marijuana Growers Cut Into Profits Of Mexican Traffickers
October 7, 2009
According to U.S. and Mexican law enforcement officials and pot growers in the U.S. and Mexico, stiff competition
from thousands of marijuana farmers in the United States threatens the bottom line for powerful Mexican drug
organizations in a way that decades of arrests and seizures have not. Almost all of the marijuana consumed in the
multibillion-dollar U.S. market once came from Mexico or Colombia. Now as much as half is produced domestically,
often by small-scale operators who tend greenhouses and indoor gardens to produce the more potent and expensive
product that consumers now demand, according to authorities and marijuana dealers on both sides of the border.
Sources said that illicit pot production in the U.S. has been increasing steadily for decades. But recent changes in
state laws that allow the use and cultivation of marijuana for medical purposes are giving U.S. growers a competitive
advantage, challenging the traditional dominance of the Mexican traffickers, who once made brands such as
Acapulco Gold the standard for quality.
Authorities: Mexico Drug Gangs In New Battle For Local Addicts
October 9, 2009
According to the army, border officials and social workers, Mexico's violent drug gangs are fighting over homegrown
addicts in the back streets of northern border cities, creating new turf wars. Gunmen have stormed at least seven
rehabilitation clinics in Ciudad Juarez, in the state of Chihuahua, since early last year in deadly attacks that target
rival drug dealers. Two strikes last month killed 28 people. Sources say top drug lord Joaquin "El Chapo" (Shorty)
Guzman has diversified from his battle for smuggling routes into the U.S. to seek control of a growing pool of Mexican
addicts along the border. After years of cracking down on gangsters, Calderon has turned some attention to
prevention and treatment. Using money seized from drug traffickers, his administration in the past year has opened
more than 300 new drug rehab centers, some located in small farm towns. That growing focus on treatment dovetails
with that of the Obama Administration, which has shifted more resources to prevention and treatment as well. U.S.
officials are providing Mexico with treatment techniques and are helping set up so-called drug courts here in which
offenders are offered supervised rehabilitation instead of jail time.
U.S. Ambassador To Mexico Carlos Pascual Praises Performance Of Tijuana Police
October 9, 2009
U.S. Ambassador to Mexico Carlos Pascual praised the efforts of the police of Tijuana against drug cartels and said
that it should be taken as an example by the rest of municipal police forces across Mexico. Pascual also noted that
the recent purge of Tijuana's police is a process that will undoubtedly improve the quality of the city's law enforcers. In
addition, Pasucal said that the U.S. is committed to reinforcing current intelligence strategies to prevent further entry
of weapons into Mexico and to protect rights of immigrants caught trying to enter the U.S. illegally.
Mexican Drug Lords Recruit Hit Men In California, Pay USD 10,000 Per Execution
October 9, 2009
According to Henry Valenzuela, a recently apprehended member of the Arellano Felix drug cartel in charge of
recruitment, Mexico's criminal organizations pay an average USD 10,000 per execution in the U.S. and for drug
packages' deliveries north of the border. Valenzuela was arrested in Los Angeles, California, with weapons and
accompanied by four Latin American hit men, two of whom were Mexican.
Former U.S. Antidrug Agent Pleads Not Guilty To Drug Charges
October 8, 2009
Former U.S. high-ranking federal agent Richard P. Cramer pleaded not guilty to drug trafficking charges that included
accusations that he gave intelligence to Mexican cartel members. The former agent, 56, who served with Immigration
and Customs Enforcement on the Arizona border and in Guadalajara, in the Mexican state of Jalisco, was arrested
last month at his home near Tucson. Cramer was later indicted and taken to Miami, where his case is being
prosecuted as some of the smugglers met there to coordinate, and where he entered his plea before Magistrate
Judge Ted E. Bandstra. He is being held without bail. A criminal complaint filed by the Drug Enforcement
Administration (DEA), after a two-year investigation, alleges a breach of trust.
Mexico Arrests Fugitive On FBI's Most Wanted List
October 8, 2009
Mexican federal agents arrested Jorge Alberto Lopez Orozco, one of the FBI's most sought fugitives, wanted for the
2002 killings of his girlfriend and her two young sons in Idaho. The arrest was made in the state of Guerrero, and
Lopez Orozco was transported to the state of Michoacan and held on a U.S. extradition request. Lopez Orozco, 33, is
charged with three counts of first-degree murder in the deaths of Rebecca Ramirez and her sons, aged 2 and 4, in
Elmore County, Idaho. He was placed on the FBI's Ten Most Wanted list in March 2005.
Mayor Of Palomas Border Town Slain
October 9, 2009
Authorities announced that unidentified assailants kidnapped and killed Estanislao Garcia Santelis, the mayor of the
border town of Palomas, in the state of Chihuahua. Garcia Santelis had long complained about the drug traffickers
and migrant smugglers active around Palomas. Palomas made headlines in 2008 when its police chief sought asylum
in the U.S. after his deputies abandoned him and he received death threats. The army subsequently took over law
enforcement in the town. Garcia Santelis led protests against high electricity rates, and some residents accused him
of mismanaging civic funds. He previously told local media of receiving threats from criminals, but did not single out a
specific gang.
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Health & Science
Mexico, U.S. And Canada Reinforce Cooperation Against A/H1N1 Influenza
October 5, 2009
The governments of Mexico, the United States and Canada agreed to reinforce cooperation to address the A/H1N1
influenza virus expected reoutbreak this autumn and winter by enhancing intersector coordination and in a bid to
construct a continental solution to the issue. Officials from the three countries also noted that dialogue and
transparency are key to manage future health concerns deriving from the virus and to reduce negative effects of the
disease on the security and prosperity of the three countries.
As Further A/H1N1 Cases Surge, Mexico Relies On Experience
October 8, 2009
Health authorities are implementing preemptive measures to address an evident surge in A/H1N1 influenza cases
and are calling on the public to be responsible and conduct themselves like they did six months ago when the first
outbreak took place. For now, health experts remain most concerned with stopping the spread and watching for the
possibility of the virus's mutating into a more lethal strain. With the number of cases surging again in Mexico—
September had more new cases than any previous month—the government says it has learned important lessons
about what works and what does not when it comes to the strain.
IMSS Saves MXN 841 Million With Three Recent Tenders
October 6, 2009
Mexico's Social Security Institute (IMSS) said that it saved a total of MXN 841 million through the recent and historical
application of a new biannual scheme for medicines' tenders through the Recurrent Discount Offers system and
under a reverse bidding scheme. IMSS issued three tenders under that method for a joint amount of MXN 4.8 billion
in late September, or 25% of the total planned tenders for 2010, for which IMSS has allocated MXN 20 billion. The
medicines will be supplied in 2010 and 2011.
Mexico Faces Public Health Concerns With Rapidly Growing Obesity Rates
October 7, 2009
Mexico currently faces a public health problem with citizens rapidly becoming the fattest in the world. Health
professionals said that the rate of increase in obesity in adults in Mexico over the past 15 years is probably the fastest
they have seen in any country around the globe. Experts noted that the main culprits include the globalization of fast
food, urban living, and a penchant for soft drinks and other sugar-laden beverages. Nevertheless, health analysts also
praised Mexico's efforts to address the problem, as it appears to have taken one of the most aggressive stances
against the phenomenon, such as the "no more salt" pilot program in the state of Colima to get salt shakers off
restaurant tables, among other measures.
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Sports
Mexico Qualifies For South Africa 2010 Soccer World Cup
October 10, 2009
Mexico qualified for next year's soccer World Cup in South Africa, along with World Champion Italy, Germany,
Denmark, Serbia, Chile and the Ivory Coast. France, Ireland, Russia and Bosnia-Herzegovina assured themselves
second-place finishes and will try to earn berths in next month's European playoffs. At Mexico City, Cuauhtemoc
Blanco, Francisco Palencia and Carlos Vega scored for El Tri after Marvin Gonzalez's own goal had given the hosts
the lead.
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Arts & Culture
"Teotihuacan, City Of Gods" Exhibit Opens In Paris
October 5, 2009
"Teotihuacan, City of Gods," a long-expected exhibition of Mexican ancient artifacts and other cultural and historic
objects, has been inaugurated in Paris's "Musee du Quai Branly" center near the Eiffel Tower. The exhibit features
450 exceptional and unique objects from the ancient Mexican city of Teotihuacan and has drawn a large public
attendance and rather broad publicity in the French capital. The exhibit is expected to be the season's largest and
most important cultural event in Europe.
Activist Group Sues In Mexico To Stop Movie Based On Garcia Marquez's Work
October 6, 2009
Efforts to film Nobel Prize-winning author Gabriel Garcia Marquez's latest novel are meeting resistance in Mexico,
where an antiprostitution group is seeking to block production, charging that the movie will promote child prostitution.
"Memories of My Melancholy Whores" tells the story of a bachelor who for his 90th birthday decides to give himself
the gift of a night of "wild love with an adolescent virgin." The Regional Coalition Against Trafficking in Women and
Girls in Latin America and the Caribbean filed a criminal complaint with Mexico's Attorney General's Office (PGR).
The complaint does not specifically name Garcia Marquez, but instead "whoever is responsible for acts that could be
constituted as the crime of condoning child prostitution."
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Environment
Mexico Says U.S. Is A "Stumbling Block" In U.N. Climate Talks; Proposes Green Fund
October 7, 2009
Mexico said the U.S. is a stumbling block in efforts to try to craft a tough global climate agreement by December,
putting pressure on its neighbor as it tried to show leadership in the United Nations (U.N.) climate talks. The U.S. has
been criticized by developing countries and green groups for not being able to put a tough emissions reduction target
for 2020 on the table during the most recent talks, instead focusing on a 2050 target. In addition, Mexico said that
poor nations demanding a slice of rich countries' GDP to fight climate change is a waste of time, and that the fairest
method would be creating a global fund to which all major emitting nations would contribute. Mexico has proposed the
creation of a green fund based on nations' historical and current greenhouse gas emissions, GDP and population as
a way to unlock potentially hundreds of billions of dollars in annual spending.
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Other
Mexico Climbs One Spot In U.N's Human Development Index
October 6, 2009
Mexico climbed one spot in the United Nations (U.N.) human development index and keeps offering, according to
estimates, a "high" life quality to its inhabitants. According to the U.N.'s report, Mexico is the 53rd out of 182 countries
included in the study to provide a rather good quality of life, above countries such as Brazil, Egypt, China and Russia
but below countries like Kuwait, Chile, Argentina and Cuba.
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