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Energy
CFE Seeks 6.24 Million Tons Of Coal For 2010-2012
October 22, 2009
The Federal Electricity Commission (CFE) announced plans to award a tender for 6.24 million tons of steam coal in
December. CFE said that bids will be opened and contracts awarded by mid-December. CFE is seeking two lots of
minimum 6,200 kcal/kg coal totaling 4.81 million tons for delivery to Mexico's Pacific Coast between 2010 and 2012.
The company is also seeking a 1.17 million-ton lot of minimum 5,900 kcal/kg coal for the same period and 260,000
tons of minimum 6,300 kcal/kg coal for delivery in 2010. Pricing for all the coal will be linked to the API2 index,
adjusted for quality.
Pemex: Total Oil Exports At USD 17.59 Billion Between January And September
October 23, 2009
Pemex announced that it exported approximately 1.27 million barrels of oil per day (b/d) during the first nine months
of the year, about 47% of total output, for USD 17.59 billion. The company noted that September registered the
highest production rate in the past four months with 2.59 million b/d. In addition, Pemex said that average output
between January and September amounted to 2.60 million b/d. The company said that 89.7% of its exports were sold
in the Americas, while 8.2% were shipped to Europe and 2.1% to Asia and the Middle East.
STPS: Closing Down Of LyFC Was Legal, Legitimate, Timely And Pertinent
October 23, 2009
Javier Lozano Alarcon, head of the Labor and Social Welfare Ministry (STPS), said while appearing before the Lower
Chamber of Congress amid a very hostile and at times violent environment, that President Calderon’s decree closing
down the Luz y Fuerza del Centro (LyFC) power utility was completely legal, legitimate, opportune and pertinent.
Lozano’s laconic speech was interrupted several times by legislators from opposition parties and by workers from the
electricians union (SME) who shouted insults against the Minister until the President of the Chamber’s board ended
the session. Lozano regretted the situation that persisted during his appearance and said it was a shameful scene.
However, the Chamber’s Political Coordination Board agreed to summon Lozano again soon.
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Mining
Mexico Could Lead World Lithium Supply After Recent Discovery
October 21, 2009
Mexican mining company Piero Sutti said that Mexico could become one of the world’s leading suppliers of lithium
along with Chile, which currently controls 40% of the global lithium production, after the recent discovery of a massive
deposit of lithium and potash in an area comprising the states of Zacatecas and San Luis Potosi. Piero Sutti stressed
the importance of such a find at a time when industry analysts expect a rise in the demand for the metal to produce
alkaline batteries. Piero Sutti noted that electronics conglomerates Samsung and LG Electronics have shown interest
in entering into agreements with it. Piero Sutti also holds a concession to exploit the deposit.
GMex Hits New Hurdle In Asarco Case; Judge To Hear Further Arguments
October 20, 2009
Mexican miner Grupo Mexico (GMex) has hit a new hurdle in its plans to regain control of U.S. subsidiary Asarco
LLC, as U.S. Bankruptcy Judge Andrew S. Hanen indicated he will consider a broad array of issues before ruling in
the case. Included for his consideration are the complaints of union miners opposed to working for their erstwhile
Mexican employer, largely for concerns over safety. The judge also has been asked to consider the Mexican copper
miner's past performance as an owner of Asarco, which is based in Tucson, Arizona. Judge Hanen last year found
GMex guilty of defrauding creditors by diverting rich copper assets Asarco owned in Peru to a different GMex unit.
GMex appealed the verdict and presented a plan to pay all Asarco creditors in full and has also argued that it
deserves a second chance to run the U.S. firm.
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Trade & Investment
Trade Between Canada And Mexico Falls 25%
October 20, 2009
According to Canadian Ambassador to Mexico Guillermo E. Rishchynsky, the current global economic downturn has
affected trade between Canada and Mexico, as it has dropped 25% in recent months. Nevertheless, the diplomat said
that trade between the two countries in 2009 is expected to reach USD 26 billion by the end of the year and allow
both governments to forecast a trade recovery for 2010. Rishchynsky said that there are currently over 2,100
Canadian firms in Mexico.
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Banking, Insurance & Finance
Financial Times: Citigroup Could Be Compelled To Sell Banamex
October 19, 2009
According to U.S. daily the Financial Times, U.S. bank Citi might ultimately be compelled to sell its Mexican unit
Banamex amid legal controversy in Mexico that arose after the U.S. government acquired a share in Citi and since
Mexican law prohibits any foreign government from having a stake in its banks. In March the Finance and Public
Credit Ministry (SHCP) ruled that Banamex and other banks in similar positions were not in breach of the law
because, among other arguments, the stakes held ultimately by foreign governments were neither permanent nor by
design. However, earlier this month legislators at the Senate agreed to issue a constitutional controversy plea to the
Supreme Court (SCJN) against the Executive Branch, as it allowed Banamex to operate in the country after the U.S.
government acquired the mentioned share in the financial institution. Under the current circumstances, the SCJN will
be in charge of defining the legal status of foreign financial institutions that operate in Mexico and that receive funds
from their governments. Banamex accounts for 15% of Citigroup’s global profits and is thought to be worth at least
USD 20 billion.
Banco Compartamos To Beat 2009 Profit, Loan Guidance
October 20, 2009
According to top company executives from Mexican microfinance bank Banco Compartamos, the firm expects to beat
its guidance for profit, loan and client growth in 2009 on the back of its strong results during the first nine months of
the year. Compartamos originally forecast full-year growth in its loan portfolio and client base of more than 20%, and
an earnings increase of between 20% and 25%. Compartamos said that its 3Q net profit jumped 31% year-on-year to
MXN 359 million, as a large expansion in net interest income offset higher loan loss provisions. Compartamos' total
loan portfolio rose 40.2% to MXN 7.07 billion at the end of September, while the number of active clients increased
36% to 1.42 million at the end of the quarter.
IXE: Afores Increase Investment In Companies’ Shares To 14.1% From 13.2%
October 22, 2009
According to data from Mexican financial institution IXE Grupo Financiero, pension fund managers’ (Afores)
investment in companies’ shares increased to 14.1% in September from 13.2% in August to MXN 134.6 billion. Of
that amount, MXN 88.2 billion, or 65.5%, was invested in the domestic stock market and MXN 46.4 billion, equivalent
to 34.5% of the total, was invested in international markets.
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Business & Industry
FEMSA Advances In Talks To Sell Brewing Unit
October 25, 2009
Mexican conglomerate Fomento Economico Mexicano’s (FEMSA) recent results indicate that the company’s
convenience-store division OXXO has been growing rapidly while its beer market share has dropped, leading the
company—according to some analysts—to lose interest in its brewing business and to advance in talks with several
foreign peers, such as Britain's SABMiller and Heineken from the Netherlands, about a possible merger or sale of
beer operations. FEMSA has seen its share of Mexico's beer market fall to 43% from a once-dominant 55%.
According to press reports, Heineken has held discussions to buy the brewing operations of FEMSA. Citing "people
close to the situation," press articles have said Heineken is seriously interested in the FEMSA beer business because
it would mark its last opportunity to acquire a major foothold in Latin America. Meanwhile, other reports and analysts
indicate SABMiller might even be able and willing to pay as much as USD 9 billion in cash to acquire FEMSA’s beer
operations.
Bimbo Net Rises, U.S. Operations Drive Sales
October 22, 2009
Mexican bread maker Bimbo posted a 24.5% rise in 3Q net profit, driven by an increase in sales due to its acquisition
of the U.S. unit of Canada's George Weston earlier this year. Bimbo earned MXN 1.732 billion in the quarter
compared to MXN 1.391 billion in the same period of 2008. In January Bimbo acquired the U.S. unit of George
Weston Ltd for USD 2.38 billion, adding a very strong operation in one of the biggest bread markets worldwide.
Quarterly sales rose 41% to MXN 29.338 billion.
Pfizer Announces Acquisition Of Wyeth Is Official After CFC Approves Operation
October 22, 2009
Global research-based pharmaceutical company Pfizer announced that its acquisition of U.S. medicines manufacturer
Wyeth’s operations in Mexico is official and has been approved by Mexico’s Federal Competition Commission (CFC).
Under the deal, Pfizer acquires all the products in Wyeth’s portfolio in a wide range of areas such as vaccines,
biotechnology and food supplements for children.
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Automotive
AMIA, AMDA Propose To Eliminate Tax On New Vehicle Ownership
October 21, 2009
The Mexican Automotive Industry Association (AMIA) and the Mexican Automotive Distributors Association (AMDA)
proposed the government cease charging the "tenencia" tax on vehicle ownership for new units and that owners of
old cars be taxed MXN 350 per year. In addition, the associations requested the Finance and Public Credit Ministry
(SHCP) approve a MXN 5 billion fund to renew the country’s vehicle fleet and replace as many as 300,000 units.
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Housing, Real Estate & Mortgaging
Infonavit Reaches 67% Of 2009 Mortgage Lending Goal In Mid-October
October 21, 2009
Government-run housing fund Infonavit said that as of mid-October it had completed 67% of its goal of a half-million
mortgages this year. Infonavit said that it made 334,352 mortgages between January 1 and October 18, of which
84,968 loans were through cofinancing arrangements with banks and home finance companies. Infonavit said that
61% of its loans originated so far this year have gone to low-income workers earning less than MXN 6,664 a month.
Infonavit also said that it financed the purchase of 74,439 homes with energy- and water-saving features.
Urbi Desarrollos Urbanos Starts Operations In Toluca
October 20, 2009
Mexican homebuilder Urbi Desarrollos Urbanos announced it has opened a new business unit to serve the industrial
city of Toluca, in the state of Mexico (Edomex), where it plans to build 3,000 low-income and middle-class homes.
The company said the annual demand for housing in Toluca and the surrounding area is about 178,000 units.
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Construction & Infrastructure
ICA To Bid For USD 18 Billion In Projects
October 23, 2009
Mexican construction and engineering firm Ingenieros Civiles y Asociados (ICA) said it aims to bid for several projects
jointly worth as much as USD 18 billion over the next 12 to 18 months. The company also said that although it
expects its debt to increase, it has strong growth potential as the government moves forward with major infrastructure
projects, including the Atotonilco water treatment plant and the Mexico City light railway. However, some investors are
concerned about the firm’s debt load, which rose 87% between September 2008 and September this year and is set
to keep rising as the company takes on more bank debt to finance its projects.
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Retail
INEGI: August Retail Sales Fall 5.5% Year-On-Year
October 22, 2009
According to the National Statistics Institute (INEGI), Mexico’s retail sales fell 5.5% in August from the same month in
2008 and were down 1.4% from July. Beginning last year, the U.S. economic crisis slammed demand for cars,
refrigerators and other goods made in Mexico, and the economy in 2009 is expected to post its deepest contraction
since 1932. In addition, a rising unemployment rate has contributed to poor sales at major retailers during 3Q. Figures
released earlier by the National Retailers Association (ANTAD) and surveys by news agencies also indicated a
contraction in Mexico’s retail sales last month.
Soriana 3Q Net Profit Jumps On Cost-Reduction Policy
October 22, 2009
Mexican retailer Soriana said that 3Q net profit more than doubled from a year ago, boosted by an aggressive costreduction
plan that offset lower sales. Soriana’s report indicated it earned MXN 551.7 million in the July-September
period, compared with MXN 262.9 million in 3Q last year. The company said in April it had launched a cost-cutting
plan to save MXN 2 billion annually to weather the economic slowdown. Soriana has focused on energy and
maintenance expenses, improving store logistics and reworking distribution routes to lift its operations and trim
spending.
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Transportation
SCT Publishes Bidding Rules For Maritime Terminal At Punta Colonet
October 22, 2009
The Communications and Transport Ministry (SCT) announced it published in the Official Gazette (DOF) the bidding
rules for a tender to operate for 45 years a loading and unloading maritime terminal at the Punta Colonet port, in the
state of Baja California, and a railroad that will feature one or two connections to the U.S. rail system. SCT did not
specify a date to award the contract and said that it has the ability to extend the period to receive bids and present the
winner. SCT noted that foreign investment from the rail concessionaire will be limited to 49%.
Anzalduas International Bridge To Start Operations In December
October 20, 2009
McAllen Mayor Richard Cortez said that the USD 190 million Anzalduas International Bridge that will connect the
cities of McAllen, Texas, and Reynosa, in the Mexican state of Tamaulipas, is expected to start operating in
December. Cortez said that the bridge might help recover approximately 15% of the trade and tourism between the
two cities. The Anzalduas Bridge, which is over 4 km long, was built with funds from both the U.S. and Mexico, which
contributed USD 140 million and USD 50 million, respectively.
Mexicana Uses Nine Planes As Guarantee For MXN 1 Billion Loan
October 20, 2009
Mexican airline Mexicana de Aviacion announced it signed an agreement with government export development bank
Bancomext to be awarded a MXN 1 billion loan for which it employed nine Airbus A-320 airplanes as guarantee,
along with a piece of land valued at MXN 60 million in Tuxpan, in the state of Veracruz. Mexicana said that due to the
A/H1N1 influenza virus outbreaks and this year’s economic crisis, Mexican airlines’ recovery will begin in 2011 and
not in the upcoming months as originally forecasted.
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Telecommunications & Technology
TechAmerica: Mexico Was Second Hi-Tech Exporter To The U.S. In 1H 2009
October 20, 2009
According to a report by U.S. technology association TechAmerica, Mexico was the second hi-tech products exporter
to the U.S. during 1H, behind only China. The study indicated that the U.S. imports of hi-tech merchandise from China
during 1H amounted to USD 116.8 billion, while purchases of merchandise coming from Mexico totaled USD 51.1
billion during that same period.
Slim Seeks To Enter The Bahamas’ Telephone Market With Telmex
October 23, 2009
According to press reports from Bahamian newspapers, Mexican billionaire Carlos Slim might be seeking to enter the
Bahamas’ telephone market and has sent executives from Telmex to analyze the viability of acquiring a 51% stake in
Bahamas Telecommunications Company (BTC), the Antilles archipelago’s largest operator.
Telmex Urges Government To Allow It To Sell Television
October 22, 2009
Mexican fixed-line telecommunications firm Telmex recently complained that regulators are unfairly preventing it from
offering television services as rivals draw clients from its phone business at a steady and hasty pace. Media giant
Televisa has been a winner in recent years from technology advances allowing companies to bundle Internet,
telephone and cable television services, while Telmex, eager to enter that market as well, has yet to receive
authorization. Former state monopoly Telmex and heavyweight cell phone operator America Movil, also controlled by
Slim, have long been viewed in Mexico as near monopolies and are regularly accused of impeding economic
development.
Colombian Authorities Fine Telmex On Lack Of Transparency
October 19, 2009
Colombia’s Trade and Commerce Administrative Division (SIC) announced it fined local units of Mexican fixed-line
telecommunications firm Telmex for failing to inform Colombian competition authorities about the recent purchase of
local competitors. The four sanctions on Telmex Hogar Colombia and Superview jointly amount to COP (Colombian
pesos) 1.7 billion, or approximately USD 943,781. Analysts expect further sanctions to be applied to Telmex as they
consider the firm omitted information on other operations.
Telmex 3Q Net Profit Falls On Competition, Economic Downturn
October 21, 2009
Mexican fixed-line telecommunications firm Telmex announced that its 3Q net profit fell 12% as competition and a
weak economy hurt sales. Net profit stood at MXN 4.8 billion compared with MXN 5.44 billion in 3Q 2008. Sales fell
5% on the year to MXN 29.5 billion as a drop in local, long-distance and interconnection revenues offset strong
growth in the company's Internet access and corporate data businesses. Earnings before interest, taxes, depreciation
and amortization (EBITDA), a measure of cash flow, fell 9.8% to MXN 13 billion, while the EBITDA margin narrowed
to 43.9% from 46.2%. In addition, Telmex said that stiff competition and the global economic environment have led it
to lose as many as 69,000 clients during 3Q, taking the figure of total lost lines to 327,000 since September 2008,
equivalent to a 2% reduction in the firm’s client base.
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Media & Entertainment
Televisa Posts Drop In 3Q Net Profit; Pay TV Operations Boost Revenues
October 22, 2009
Mexican broadcaster Grupo Televisa posted a slight decline in 3Q net profit, hit by higher income taxes, but revenue
rose 5.5%, boosted by its pay television units. Televisa earned MXN 2.014 billion in the July-September period, down
2.6% from the year-ago quarter. Quarterly revenue rose to MXN 13.150 billion from MXN 12.459 billion in the same
period a year ago, helped by its cable units Cablevision and Cablemas as well as its satellite TV subsidiary SKY.
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Farming & Agriculture
Russia Allows Mexican Meat Exports To Enter The Country
October 19, 2009
Mexican sanitary inspection agency SENASICA announced that Russian sanitary and trade authorities approved
Mexican exports of beef, pork and horse meat, among others, to its territory. SENASICA said that the authorization
awarded by Russian authorities is a great opportunity for Mexican farmers’ growth, as the European-Asian country is
the world’s third-largest market for meat and grows at an annual rate of 7%. In addition, Russia imports 50% of the
meat it consumes.
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Hospitality & Tourism
Puerto Escondido Is Mecca For Surfers, Haven For Sea Turtles
October 22, 2009
The port of Puerto Escondido, located in the southern state of Oaxaca and home to roughly 30,000 people, was
established in the 1920s as a shipping port for coffee and has now become a tourist Mecca for surfers from all around
the world, according to thousands of foreign tourists’ testimonials. In addition, Puerto Escondido features a "comingout
party" of sorts in which just-hatched baby turtles are released into the ocean at night from August through May,
becoming an even more appealing tourism spot for foreigners who seek to practice extreme sports and are fond of
nature.
Turibus: A Comprehensive Way To See Mexico City
October 22, 2009
According to tourists visiting Mexico City, the red double-decker bus called Turibus is a comprehensive way to see
the country’s capital, as it reveals sights most visitors would otherwise miss. The service has two routes: One covers
the downtown area that includes the historic center, a few residential neighborhoods and Chapultepec, the vast park
in the middle of the city. The second route covers the south side of the city, with stops at many shopping malls and
museums. The two routes meet at the Plaza Cibeles, which showcases an enormous fountain depicting the Greek
Earth goddess.
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Economy
Banxico Sees Economy Down Between 6% And 7% In 2009
October 20, 2009
According to the central bank (Banxico), Mexico's economy is set to shrink between 6% and 7% this year, a slightly
gentler drop than in the bank's previous forecasts. Meanwhile, U.S. financial management and advisory company
Merrill Lynch said that a potential 3.5% growth in Mexico’s gross domestic product (GDP) would be perceivable only
until 2011 and that inflation this year might end at 4.1%, in line with Banxico’s expectations.
Lower House Of Congress Approves Fiscal Package
October 21, 2009
The Chamber of Deputies’ full house passed a watered-down version of President Calderon's tax reform proposal in
an effort to reduce a dependence in the 2010 budget on waning oil output. The package includes an increase in the
country's value-added tax (VAT), which excludes food and medicine, to 16% from 15%. The reforms also include an
increase in the income tax rate for high earners to 30% from 28%. Calderon originally called for a new 2% sales tax
on all goods and services, but that proposal was struck from the version the Chamber of Deputies passed. The tax
increases also include a new 3% tax on telecommunications; a 10% tax increase on gambling, games and raffles to
30%; a 26.5% tax on beer (up from 25%); and a MXN 3 quota per liter on spirits. The budget and tax bills are
currently being discussed in the Senate, and could be returned to the lower chamber with changes or passed on to
President Calderon for signing into law. The approval of the taxes by the Lower House has caused uproar in Mexico
and several sectors of society, opposition politicians and entrepreneurs, who have strongly criticized legislators.
Banxico: International Reserves Rise USD 898 Million To USD 80.14 Billion
October 20, 2009
The central bank (Banxico) announced that Mexico's international reserves rose above the USD 80 billion mark last
week for the first time since March. Banxico said that as of October 16, the country’s foreign reserves were USD
80.14 billion, up USD 898 million from the previous week. State oil monopoly Pemex sold the central bank USD 750
million, the federal government sold the bank USD 14 million, and other operations resulted in a net increase of USD
134 million in reserves. Mexico's international reserves remain USD 5.3 billion lower than the year-end 2008 level of
USD 85.44 billion.
INEGI: Unemployment Rate Hits 14-Year High In September
October 21, 2009
According to the National Statistics Institute (INEGI), Mexico's unemployment rate rose to its highest level in 14 years
in September, as a crippling recession ravaged the country's export sector. The jobless rate rose to a higher-thanexpected
6.41% in the month from 6.28% in August. The unemployment rate is in bare contrast to other indications
that Mexico's economy began to recover during the third quarter, and supports the view that factories might rebound
faster than workers.
Banxico: Mexico Consumer Prices Hike 0.35%, Drive 12-Month Inflation Down
October 22, 2009
According to figures from the central bank (Banxico), Mexican consumer prices rose 0.35% in the first half of October,
pushing 12-month inflation down to 4.65%. The reading was in line with expectations. Annual inflation has slowed in
eight of nine months so far this year, as a deep recession made it harder for businesses to raise prices. Banxico
nonetheless has been warning about inflation, saying that a likely economic rebound and a tax bill in Congress could
fuel price increases. Prices had risen 4.89% in the 12 months through September, which is still well above Banxico’s
3% medium-term inflation target.
Former SHCP Minister Obtains Belisario Dominguez Award Postmortem
October 22, 2009
Antonio Ortiz Mena, former head of the Finance and Public Credit Ministry (SHCP), was awarded the 2009 Belisario
Dominguez medal postmortem by the Senate for his contribution to the country’s economic growth. Ortiz Mena was a
promoter of the so called "stabilizing development" economic model employed between 1958 and 1970 and which led
to an economic growth of 8% in the late 1960s.
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Border & Migration
NY Times: Kidnappings Of Undocumented Immigrants Heading To The U.S. Increase
October 18, 2009
According to a report by U.S. daily The New York Times citing Mexico’s National Human Rights Commission (CNDH)
studies and interviewed migrants, the number of kidnappings of Mexicans and Central Americans who have been
kidnapped while heading north and seeking to cross into the U.S. has increased dramatically. Mexican human rights
groups that monitor migration say the threats foreigners face as they cross Mexico for the U.S. have grown
significantly in recent months. Organized crime groups have begun targeting migrants as major sources of illicit
revenue, even as the financial crisis in the U.S. has reduced the number of people willing to risk the journey. In
addition, a study by the CNDH released this year found 9,758 migrants had been kidnapped as they tried to cross the
border into the U.S. between September 2008 and February 2009. Meanwhile, top officials at Mexico’s Foreign Affairs
Ministry (SRE) said that corrupt authorities in the U.S. contribute to people, drugs and weapons trafficking at the
border.
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Politics
U.S. Ambassador To Mexico, Other Diplomats Present Credentials To President Calderon
October 21, 2009
U.S. Ambassador to Mexico Carlos Pascual and 13 other diplomats from other countries presented their credentials
to President Calderon at the National Palace. During a nearly 10-minute-long conversation, Ambassador Pascual
noted that Mexico and the U.S. should reinforce further their cooperation against drug trafficking, calling it a
hemispheric scourge that threatens all the countries in the Americas, from Argentina to Canada. He added that
working harder on the U.S. side is a necessary step to begin a new era of collaboration.
Leftist Parties Agree To Unite In Attempt To Win Future Elections
October 21, 2009
The leftist Democratic Revolution Party (PRD), Labor Party (PT) and Convergence Party (Convergencia) announced
they agreed to set their differences aside and enter a new era of cooperation and reunification to create an electoral
magnet capable of competing efficiently against other political forces and with the aim of winning the 2010, 2011 local
elections as well as the 2012 presidential race. Leaders of the parties said that the new unifying entity, coordinated by
Manuel Camacho, a seasoned politician, will be more organized and stronger than the Broad Progressive Front (FAP)
coalition of leftist parties.
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Justice, Safety & Crime
Drug-Related Murders Surpass 6,000 So Far This Year
October 21, 2009
According to newspapers’ tallies and other unofficial figures, Mexico’s drug war victims so far this year have
surpassed 6,000, of which murders committed in Ciudad Juarez, in the state of Chihuahua, amount to more than
2,000. This year is expected to be the most violent since President Calderon took office in 2006 and declared war on
drug traffickers, and it might be also the most violent in the country’s history regarding illicit drugs trade and other
related criminal activities.
U.S. Raid Yields 303 Arrests Of Criminals Working For The La Familia Cartel
October 23, 2009
U.S. Attorney General Eric H. Holder Jr. announced that U.S. authorities arrested 303 people in a nationwide sweep
targeting the distribution network of La Familia Michoacana, a fast-rising Mexican drug cartel known for its violence,
messianic culture and control over the methamphetamine trade. Holder specified that more than 3,000 federal, state
and local agents participated in the U.S. law enforcement operation that covered 38 cities and which is the largest
mounted so far against a Mexican cartel. Holder added that the raids "dealt a significant blow to La Familia's supply
chain," netting cash, drugs, weapons and vehicles in 19 states. U.S. officials did not say whether any cartel leaders
were caught, and some analysts said the cartel will recover. The operation also exposed some antagonisms between
the two countries: the U.S. Drug Enforcement Administration (DEA) said the Mexican cartel is "philosophically
opposed to the sale of methamphetamine to Mexicans, and instead supports its export to the U.S. for consumption by
Americans." On the other hand, Mexican officials have long blamed U.S. drug consumers for their role in fueling the
drug trade in the region.
Corruption Increases Among U.S. Authorities; Southern Cities Are Warehouses For Drugs
October 23, 2009
According to analysts, corruption among U.S. law enforcers is increasing and drug trafficking rings are reaching
extraordinary dimensions, becoming more complex and sophisticated than those present in Mexico. In addition,
analysts say that a highly bureaucratized and inefficient justice system contributes to the rise in corrupt practices in
the U.S. Meanwhile, although the U.S. started employing state-of-the-art technologies to identify and intercept drug
shipments to the U.S., corruption on both sides of the border has led cities such as Los Angeles, El Paso, Dallas and
Houston and the state of Arizona to become warehouses to store huge amounts of narcotics to be distributed in the
rest of the U.S. and Canada.
Drug Cartels Recruit Gunmen In The U.S., Corrupt Police Officers
October 23, 2009
According to authorities’ reports, analysts and testimonials from arrested drug traffickers, some Mexican cartels
recruit gunmen in the U.S. belonging to border gangs such as the Los Aztecas, Los Mexicles and los Artistas
Asesinos (AA). Other reports indicated that Mexican drug cartels hire corrupt police and border agents to ease the
passage of vehicles loaded with drugs from Mexico into the U.S. Meanwhile, Mexican politicians and former officials
said also that Mexican drug traffickers hire U.S. military deserters, police officers, young hit men aged between 13
and 19 and women and give them very precise tasks to be performed in the U.S. They also claim local governments
in Mexico have entered into agreements with major drug traffickers. In a related matter, the U.S. Federal Bureau of
Investigation (FBI) said it uncovered 400 cases of public corruption at the border in the past two years, leading to 130
indictments and nearly 100 detentions of U.S. officials with links to drug trafficking.
Mexican Drug Lord Pleads Guilty To U.S. Charges
October 23, 2009
Mexican drug kingpin Miguel Angel Caro Quintero pleaded guilty in a Denver federal court to one count of
racketeering in Colorado and one count of conspiracy to distribute marijuana in Arizona. Caro Quintero faces up to 20
years in prison, but could serve as little as 10 years. He is expected to be sentenced February 4. Caro Quintero, 46,
led the Sonora Cartel, which U.S. authorities say smuggled thousands of tons of marijuana and cocaine into the U.S.
in the 1980s. His brother, former cartel leader Rafael Caro Quintero, was convicted in the 1985 torture-slaying of
undercover Drug Enforcement Administration (DEA) agent Enrique "Kiki" Camarena Salazar. Rafael Caro Quintero
was arrested in Costa Rica in 1985 and extradited to Mexico, where he is serving a 40-year prison term for
Camarena's murder.
California Prisoners To Be Sent To Mexico
October 23, 2009
According to unofficial information, California Governor Arnold Schwarzenegger might be considering deporting as
many as 19,000 undocumented and imprisoned immigrants to Mexico and other countries soon. Under that scenario,
the Mexican state of Baja California might receive as many as 1,000 Mexicans per year, an amount the state’s
governorship said is manageable. Nevertheless, the governor of the state said that deportations must follow some
procedures such as biometric controls to avoid rising levels of violence in the state.
U.S. Eases Stance On States That Allow Medical Marijuana
October 20, 2009
U.S. Attorney General Eric H. Holder Jr. directed federal prosecutors to back away from pursuing cases against
medical marijuana patients, signaling a broad policy shift that drug-reform advocates interpret as the first step toward
legalization of the drug. The U.S. government's top lawyer said that in 14 states with some provisions for medical
marijuana use, federal prosecutors should focus only on cases involving higher-level drug traffickers, money
launderers or people who use the state laws as a cover.
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Health & Science
Mexico Pushes For Homegrown A/H1N1 Vaccine; Sanofi-Aventis To Produce It
October 23, 2009
President Calderon persuaded drug manufacturers to sell Mexico 30 million doses of A/H1N1 vaccine, while 1,000
Mexicans lined up for an experimental vaccine they hope can speed up supplies. Meanwhile, French drug maker
Sanofi-Aventis announced plans to open a manufacturing plant in Mexico that will produce 25 million flu vaccine
doses a year starting in 2012. Health Minister Jose Angel Cordova Villalobos said Mexico is eager to get the plant
operational, since a vaccinated community can reduce the number of severe cases and fatalities and can slow the
virus’s spread.
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Sports
America Beat Guadalajara In First Game Broadcast In 3D
October 26, 2009
Thousands of Mexicans watched the first ever 3D local soccer match, which was played by America vs. Chivas, at
theaters, in addition to the thousands who had a more traditional view of the match between the country's two most
popular teams, which finished with a 1-0 victory for America. Attendants to theaters said that the large-screen 3D
transmission was more electrifying than the stadium experience—a world first according to broadcaster Televisa,
which plans to repeat it for the tournament’s championship final.
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Arts & Culture
UNAM Is Awarded Prince Of Asturias’ Prize
October 23, 2009
The National Autonomous University of Mexico (UNAM) was given the Communications and Human Sciences’ Prince
of Asturias’ Award by Spain’s Prince Philip of Bourbon, who praised the institution’s fondness for teaching and
freedom. At an emotive event, the Prince recalled Mexico’s contribution in receiving Spanish-born intellectuals and
academics after Spain’s Civil War. In addition, UNAM and Spain’s Universidad de Salamanca signed a collaboration
agreement that will allow further joint efforts and resources to support quality education in both Spain and Mexico.
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Environment
WB Approves USD 1.5 Billion Loan For Mexico For Environmental Policy
October 20, 2009
The World Bank (WB) approved a USD 1.5 billion loan to Mexico to finance the country’s public environmental
policies to reduce the amount of greenhouse gas emissions. Investments with the funds will be made in the
renewable clean energies sector and in the massive urban transportation systems, contributing as well to the shortterm
stimulation of the economy.
Beetles Attack Monarch Butterflies' Trees In Mexico
October 21, 2009
Authorities in Mexico's famed monarch butterfly reserve in the states of Michoacan and Mexico (Edomex) are cutting
down thousands of trees to fight an unprecedented infestation of deadly bark beetles. Biologists and park workers are
racing to fell as many as 9,000 infected fir trees and bury or extract infested wood before the orange-and-black
monarchs start arriving in late October to spend the winter bunched together on branches, carpeting the trees.
Environmentalists say the forest canopy of tall firs is essential to shelter the butterflies on their annual migration
through Mexico, the U.S. and Canada. The journey is tracked by scholars and schoolchildren across North America
and draws tens of thousands of tourists to the Monarch Butterfly Biosphere Reserve, a U.N. Heritage site.
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