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Energy
IADB Awards USD 3.2 Billion In Loans To Mexico For Energy Projects
November 20, 2009
The Inter-American Development Bank (IADB) said it awarded Mexico several loans jointly amounting to USD 3.2
billion during 2009 for energy projects. Of the total amount, USD 500 million was destined to develop clean energies
by building wind farms in different states, mostly in Oaxaca. Another loan, for USD 301 million, will be earmarked for
investment in projects by Small and Medium Sized Enterprises (SMEs), mostly from the oil sector. The funds are part
of a broader USD 1.2 billion conditional credit line for investment projects (CCLIP) approved by the IADB earlier this
month.
Pemex Will Seek To Raise USD 3 Billion In External Capital Markets In 2010
November 19, 2009
Mexican state-owned oil firm Pemex said it will likely tap external capital markets in 2010 to raise about USD 3 billion.
Pemex also said it is "fairly confident" about the company's 2010 outlook for production, currently at 2.5 million barrels
per day (b/d). In addition, Pemex said it will likely finalize the terms of its new incentive-based contracts during the
first half of next year, a method meant to give private firms greater flexibility in service contracts with the company.
CFE Tenders Geothermal Central In Baja California
November 19, 2009
Mexican state-owned power firm Federal Electricity Commission (CFE) announced an international public tender for
the construction of the "221 CG Cerro Prieto V" geothermal central in the state of Baja California. CFE said that
interested parties must prove a net capital of MXN 585 and 10 years of expertise in carrying out similar type of
projects.
LyFC Shutdown Creates Billing Difficulties
November 17, 2009
Mexican state-owned power firm Federal Electricity Commission (CFE) said it has kept power flowing in central
Mexico after taking over operations of the regional Luz y Fuerza del Centro (LyFC) utility, but has yet to figure out
how to charge its new customers. CFE confirmed it is seeking a way to bill customers of LyFC, which distributed
electricity in Mexico City and surrounding states. President Calderon ordered the closure of LyFC on October 11 and
its operations taken over by its larger counterpart, which is now the only public electricity utility in Mexico. LyFC read
meters manually, and local media have said CFE doesn't have the staff yet for that task, and may have to charge
customers by averaging past use. CFE said a method for charging users would be announced next week and then
bills would go out sometime after that.
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Trade & Investment
SCHP: FDI Plunges 37% In First Nine Months Of 2009
November 20, 2009
According to figures from the Finance and Public Credit Ministry (SHCP), foreign direct investment (FDI) in Mexico
plunged 37% in the first nine months of 2009, totaling USD 9.75 billion. SHCP’s report did not provide a comparative
figure, but government data indicated that FDI in the like 2008 period was USD 15.56 billion. However, SHCP also
revised its estimate of FDI flows in 2008 to USD 22.516 billion, up sharply from an initial estimate of USD 18.6 billion.
The government forecast in May that FDI would fall to about USD 15 billion in 2009. Manufacturing and financial
services received the majority of FDI flows into Mexico in the period. The U.S. was the principal source of FDI,
providing nearly USD 5.2 billion, followed by the Netherlands, with USD 1.439 billion.
U.S. DOC: Mexico’s Exports To The U.S. Contract 19.1% Through September
November 20, 2009
According to the U.S. Department of Commerce (DOC), trade between Mexico and the U.S. shrank during the first
nine months of the year. The DOC said Mexico’s exports to the U.S. fell 19.1% during the first three quarters to USD
125.66 billion when compared to the USD 154.78 billion it had exported in the like 2008 period. Meanwhile, U.S.
exports to Mexico also dropped and reached USD 92.44 billion from January through September this year, 8.9% less
than the USD 101.55 billion it exported in the same period last year. In addition, Mexico’s trade surplus contracted to
USD 32.61 billion when compared to USD 53.22 billion last year.
CNBV To Publish Direct Market Access Rules In January
November 20, 2009
The National Banking and Securities Commission (CNBV) said that it expects to publish rules in January allowing
direct market access and algorithmic trading, a change that could boost liquidity in the country's securities markets.
Under the new rules, brokers in Mexico will be able to let their clients execute buy and sell orders directly through
their trading platforms, dramatically speeding up executions. High-frequency trading now accounts for an estimated
50% to 70% of all U.S. equity trading and is growing fast in other regions and asset classes.
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Banking, Insurance & Finance
Consar: Pension Savings Rise To MXN 1.085 Trillion By End Of October
November 17, 2009
According to Mexican pension fund regulator Consar, pension managers (Afores) reported compulsory retirement
savings of MXN 1.085 trillion at the end of October, up 31% from a year earlier. Total assets under management,
including voluntary savings, as well as pension companies' regulatory capital, rose 32% on the year to MXN 1.106
trillion. Consar said the average yield on pension savings, after commissions, was 5.3% for a three-year period
ending October 31, up from 2.53% at the end of February, at the peak of the global financial crisis. The country's 16
private sector Afores managed nearly 39.4 million accounts at the end of October.
AMIS Sees Premiums Up 7% In 2009
November 18, 2009
Mexico's Insurance Industry Association (AMIS) said that premiums will probably grow 7% this year as consumers
and businesses continue to buy insurance even in the midst of a deep recession. AMIS said November and
December, when many businesses renew their policies, will be key months to gauge the industry's growth prospects
for 2010. According to sector regulator CNSF, Mexico's insurance industry reported direct premiums of MXN 173.28
billion during the first nine months of 2009, an increase of 8.1% from the year-ago period.
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Business & Industry
CANACERO: Mexico Steel Output Falls 21% In 2009 When Compared To 2008
November 17, 2009
According to the National Iron and Steel Chamber (Canacero), Mexico's steel production will drop to 13.6 million tons
this year, 21% less than 2008 figures, as demand fell in the U.S. Mexico produced 17.2 million tons of steel last year,
when the industry was first hit by slowing sales due to the housing crisis and the financial downturn. Meanwhile, P.S.
Venkataramanann, CEO of ArcelorMittal Mexico and president of the chamber, said the industry could grow in 2010
as Mexico invests in major alternative energy projects like wind turbines that require large amounts of steel.
Analysts: Sale Of 50% Stake In GModelo To InBev Could Amount To 11 Times The Firm’s EBITDA
November 13, 2009
According to analysts and experts from the beverages sector, U.S.-Belgian-Brazilian brewer Anheuser-Busch InBev
would need to spend 11 times Mexican brewer Grupo Modelo’s (GModelo) EBITDA, a measure of cash flow, to
acquire the 50% stake it does not already own in the company. The amount is close to what would be paid for
GModelo’s local rival FEMSA should it be acquired by beer giants Heineken or SABMiller. Nevertheless, GModelo is
a more valuable firm than FEMSA, according to experts who estimated the acquisition of GModelo’s 50% stake at
between USD 10 billion and USD 15 billion.
FEMSA Finds Several Obstacles In 2009
November 13, 2009
According to top executives from Mexican conglomerate Fomento Economico Mexicano (FEMSA), the firm had a
rough 2009 due to the security and health issues that affected Mexico this year, prompting consumption of the goods
it provides to drop considerably during some phases of 2009. FEMSA said that the most affected product by a drop in
demand was beer, noting that insecurity affects negatively their sales in specific parts of the country.
Ajemex To Sue Coca-Cola For USD 30 Million For Monopolist Practices
November 17, 2009
Soft-drink maker Ajemex, the Mexican subsidiary of Peru-based Ajegroup, said it will sue the Mexican unit of U.S.
soft-drink giant Coca-Cola for maintaining monopolist practices in Mexico’s soft-drink market between 2003 and 2009.
Ajemex said it would sue its peer for as much as USD 30 million. Ajemex said it has started the procedures and
sought assistance from Mexico’s Federal Competition Commission (CFC).
Press Reports: RZB Sues IUSA For Failing To Pay USD 15 Million
November 19, 2009
According to press reports, Austrian bank Raiffeisen Zentralbank Österreich AG (RZB) sued Mexican electric cable
and products manufacturer IUSA for failing to pay a USD 15 million debt. The reports indicated that earlier this month
the firm halted payment of USD 11.5 million plus interest—related to a bond placed in the U.S. through Swiss bank
Credit Suisse.
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Automotive
AMDA: Mexico Hits Car Sales Record Low So Far This Year
November 17, 2009
According to the National Association of Auto Distributors (AMDA), Mexico reached a new record low in car sales in
2009 when compared to its main partners and competitors in the automotive industry, such as Brazil, Argentina,
Japan, Germany, and the U.S. AMDA said Mexico has a potential to commercialize as many as 17 new cars per
1,000 inhabitants but it sold only an average of 9. AMDA said Brazil sells 14 cars per 1,000 inhabitants, Argentina 15,
Germany 40, Japan 41, and the U.S. 44.
Ford Inaugurated Plant In Mexico
November 17, 2009
U.S. carmaker Ford Motors announced that it opened a new facility in the city of Chihuahua, in the state of the same
name, with an annual production capacity of 200,000 diesel turbocharged engines to power pickup trucks. The Power
Stroke motor will be produced at a new annex of the firm’s existing complex in Chihuahua and will be used for the
2011 models of Ford's Super Duty F-250, F-350, F-450, and F-550 pickups. Ford said that the USD 838 million
project will generate 1,100 direct jobs and 3,300 indirect jobs in its final phase.
AMIS: Car Theft In Mexico Rises 14.8% During 3Q
November 17, 2009
Mexico's Insurance Industry Association (AMIS) said that car theft nationwide continues to increase and that it rose
14.8% during 3Q, with 65,792 insured and stolen vehicles reported. AMIS said that this is the first time the Federal
District (DF) reported a drop. with 15,813 stolen cars, down from 16,045 in the like 2008 period. Nevertheless, the
State of Mexico (Edomex) and the state of Jalisco reported an increase of 17.9% and 15.5%, respectively.
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Housing, Real Estate & Mortgaging
Infonavit Signs Agreement With Technology, IT Firms Microsoft, Siway, Synnex
November 17, 2009
Mexican government-run housing fund Infonavit announced it signed agreements with some technology and IT firms
such as giants Intel and Microsoft to launch the Digital Home program in a complex featuring about 6,500 homes in
the state of Michoacan. Under the agreement, PC manufacturers and software developers will provide workers who
obtained a house through Infonavit a computer with broadband Internet access at a preferential price ranging
between MXN 4,800 and MXN 6,100.
Infonavit Sells MXN 2.53 Billion In Mortgage Bonds
November 19, 2009
Mexican government-run housing fund Infonavit said that it sold MXN 2.53 billion of its Cedevis mortgage bonds in its
fifth issuance this year. Infonavit said it expects the 22-year bonds denominated in inflation-indexed currency units
(UDIs) to yield 5.4%, 10 basis points lower than its previous issuance in September. Infonavit said insurance
companies, brokerages, pension funds, and other institutional investors were buyers of the bonds. With its latest
placement, Infonavit has sold MXN 11.33 billion this year. Infonavit, which originally planned to issue MXN 10 billion,
said in August it might sell up to MXN 15 billion during 2009 if market conditions permit.
Homex Shareholders Approve Proposed Capital Increase
November 20, 2009
Mexican homebuilder Desarrolladora Homex announced that its shareholders have approved a capital increase to
fund its expansion. Homex said the board is authorized to carry out a capital increase equivalent to between 5% and
6% of the company's current capital at any time through October 2010.
Banamex To Finance Homes For Baby Boomers
November 17, 2009
Banamex, the Mexican unit of U.S. banking group Citi, announced it extended a USD 88 million credit line to U.S.
realtor Artesana Rosewood Residences as part of a broader USD 250 million planned investment for luxury homes
and hotels complexes in Mexico. The firms said it is the largest loan ever granted by Banamex to a private company
or to the state of Guanajuato, where the buildings will be constructed.
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Construction & Infrastructure
Mexican Government Seeks U.S. Investment For Infrastructure Projects
November 17, 2009
Mexico’s federal government and state-run infrastructure development bank Banco Nacional de Obras y Servicios
Publicos (Banobras) announced they are seeking U.S. investment for as many as 150 infrastructure projects in
Mexico, including the Riviera Maya airport, the multimodal port of Punta Colonet, and the new refinery in Tula. The
projects, which are included in the National Infrastructure Plan (PNI), will be put to tender next year and total
investment is estimated to reach approximately USD 5 billion. The works are part of a broader 480-projects plan for
which estimated required investment amounts to USD 226 billion in the next three years.
U.S.-Mexico Chamber Of Commerce: U.S. Not Building Enough In Mexico
November 19, 2009
According to Eduardo Ramos-Gomez, president of the U.S.-Mexico Chamber of Commerce northeast chapter, the
U.S. has not explored construction in Mexico enough. Ramos-Gomez said that the U.S. has "taken the vicinity for
granted (...) building in Europe, the Middle East and Asia." Ramos-Gomez added that he believes both countries
should build a consensus and make a concerted effort to create the infrastructure that is going to allow them to
compete, noting that "infrastructure on both sides of the border—between the U.S. and Mexico—is not the
infrastructure for a region that is prepared for the 21st century."
Congress Increases Infrastructure Funds For The State Of Mexico
November 17, 2009
Legislators approved a 2010 federal spending budget that favors greatly the State of Mexico (Edomex) in terms of
infrastructure, as the state secured MXN 1.6 billion for that purpose, 12.6% more than the MXN 8.034 billion that was
originally allocated. As a total figure, Edomex will receive as much as MXN 2.6 billion for telecommunications and
infrastructure. The original federal budget for communications and transports increased 31% to MXN 80.5 billion from
the originally planned MXN 61.6 billion.
ICA Wins MXN 686 Million Water-Pumping Station Project From CONAGUA
November 19, 2009
Mexican construction company Empresas ICA announced it secured a MXN 686 million contract to build a waterpumping
station in central Mexico. ICA said the contract was awarded by the National Water Commission
(CONAGUA) and calls for work to be completed in 10 months. The station, part of the water supply system for Mexico
City, will have the capacity to pump 40 cubic meters per second. The contract was won by ICA’s Cotrisa unit, which it
acquired in September.
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Retail
FEMSA To Open 850 Oxxo Stores In 2010
November 16, 2009
Mexican conglomerate Fomento Economico Mexicano (FEMSA) expects to open 850 new Oxxo convenience stores
in 2010, close to the originally planned growth pace for this year. In addition, the firm noted that Oxxo entered
Colombia earlier this year and it could explore other Latin American markets. FEMSA declined to give any details on
the possible sale of its beer unit.
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Telecommunications & Technology
Carlos Slim To Invest USD 7 Billion Next Year
November 17, 2009
Mexican billionaire Carlos Slim said he will seek to further expand his firms’ presence in the broadband services
market in Latin America and in the realty and construction services in Mexico, adding that his companies have
allocated as much as USD 7 billion for those purposes in 2010. Slim said that his mobile telephony giant America
Movil alone will invest about USD 3.5 billion next year, and that fixed-line telephony firm Telmex will invest
approximately USD 1.1 billion.
Telmex Succeeds In Blocking ASL Consolidation Program For Third Time
November 21, 2009
Mexican fixed-line telephony giant Telefonos de Mexico (Telmex) succeeded in blocking the process to consolidate
the Local Service Areas (ASL) program, which includes 70 areas, and which seeks to eliminate long-distance calls
between neighboring areas by changing prefixes and area codes of dialing numbers. Telmex has opposed the
program because those operations represent an important part of its earnings, and this is the third time it has been
awarded legal protection against the procedure.
CFC Supports Initiative To Allow New Players To Compete With Telmex
November 20, 2009
The Federal Competition Commission (CFC) confirmed its position and said it gives its full support to the initiative
discussed in Congress to modify the Foreign Investment Law to reduce barriers on foreign direct investment (FDI) to
facilitate the entrance of new players to compete against giant telco Telmex. Under the proposal, the legal FDI in the
country’s fixed telephony market could reach as much as 100%, presenting a serious risk to Telmex’s hegemony.
Meanwhile, analysts said that several telcos and media firms, such as Telefonica, Grupo Televisa, Axtel, Alestra, and
Megacable, might enter an alliance to jointly bid for the Federal Electricity Commission’s (CFE) upcoming dark fiber
tender in order to better compete with Telmex.
Cablevision Eyes Mobile Services Launch In 1Q
November 19, 2009
Mexican cable TV operator Cablevision, owned by broadcaster Televisa, said it could launch mobile telephony
services in the first quarter of 2010, but failed to disclose further details on the operation. Televisa has already
entered the fixed telephony market in Mexico, where it competes with rival and dominant giant Telmex, owned by
billionaire Carlos Slim. Other cable TV operators, such as Megacable, have also said they are preparing to enter the
mobile telephony market.
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Media & Entertainment
Univision-YouTube Alliance Fuels Conflict With Televisa
November 18, 2009
U.S. Spanish-language TV network Univision and its alliance with YouTube have prompted Mexican media giant
Televisa to place its content in websites such as Esmas and Tvolucion, since Univision won’t include Televisa’s
content in its YouTube broadcasts. Nevertheless, Televisa owns the rights of Univision’s most popular TV series and
soap operas, circumstances that will lead to an enhanced conflict between the companies as they have had serious
differences in the past. Earlier this year a federal judge in Los Angeles ruled against Televisa and handed Univision a
major victory in its fight for rights in the U.S. to transmit the telenovelas (Spanish-language soap operas). Televisa
had sought the judge's permission to transmit soap-operas episodes it produces in Mexico City to U.S. audiences
over the Internet, but in a 21-page ruling, U.S. District Judge Philip S. Gutierrez concluded that a long-term
programming agreement that Univision and Televisa struck in 1992 "bars Televisa from sending programs to the
United States by any means, including the Internet."
SEC: Bill Gates Increases Share In Televisa
November 20, 2009
According to a report by the U.S. Securities and Exchange Commission (SEC), U.S. billionaire Bill Gates’ investment
firm Cascade Investment has increased its stakes in Mexican media conglomerate Grupo Televisa to 60 million
737,000 CPOs. Meanwhile, the Bill & Melinda Gates Foundation controls 121 million 920,500 CPOs. Bill Gates
controls through his firm and his foundation 4.1% of the A shares, 7.7% of B shares, 7.7% of the D shares, and 7.7%
of L shares in Televisa, according to the SEC and the NYSE.
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Hospitality & Tourism
SECTUR, Banxico: Tourism-Related Currency Earnings Fall 17.6% Through September
November 20, 2009
According to figures from the Tourism Ministry (SECTUR) and the central bank (Banxico), the amount of foreign
currency entering Mexico through tourism fell 17.6% from January to September to USD 6.8 billion when compared to
the like 2008 period, the worst fall year-on-year for that figure since it started being recorded. Data also indicated that
the number of visitors to Mexico fell 6.6% to 15.7 million during the first nine months of the year, the worst fall in 12
years.
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Economy
INEGI: Economy Grows 2.93% In 3Q When Compared To 2Q
November 21, 2009
According to the National Statistics Institute (INEGI), Mexico's economy expanded for the first time in a year during
the third quarter, growing 2.93% from the 2Q and following three consecutive quarters of contraction. Meanwhile,
some experts say that, with the said result, the Mexican economy has left behind the worst recession in the last seven
decades. Mexico's 2.93% expansion translates into an annualized growth rate of roughly 12%. President Calderon
had said earlier this month, before the information was disclosed, that the economy grew 2.7% in 3Q, drawing
comments from analysts and opposition politicians who claimed Calderon might be mistaken. Meanwhile, the Inter-
American Development Bank (IADB) as well as figures from the Finance Ministry indicate that Mexico’s gross
domestic product (GDP) could grow as much as 3% in 2010, a huge improvement from a 7.5% drop in 2009.
However, Nobel Prize-winning economist Joseph Stiglitz said recently that Mexico’s leaders are failing to address
serious flaws in their economic system, including many monopolies and a tight-budget spending plan.
SHCP: Finances Can Shield From Downgrade
November 19, 2009
According to Alejandro Werner, Deputy Secretary at the Finance and Public Credit Ministry (SHCP), the country’s
public finances are in a strong position, which shall shield the country from a credit-rating downgrade. Werner said
significant initiatives addressed in the 2010 budget and advancements in the country's pension system make "a pretty
strong case that public finances are solid." Werner added that Mexico's debt as a share of its gross domestic product
will increase slightly to 38% in 2010 but will start declining in the following years.
Congress Approves MXN 3.17 Trillion 2010 Budget
November 17, 2009
Congress approved a final MXN 3.17 trillion budget bill for 2010, which international credit-rating agencies have
begun scrutinizing to decide whether to downgrade the country's sovereign debt. After a session that lasted into the
early-morning hours, the lower house voted the spending portion of the budget with wide support from President
Calderon's conservative National Action Party (PAN), along with the main opposition group in Congress, the
Institutional Revolutionary Party (PRI). Meanwhile, the Finance and Public Credit Ministry (SHCP) said the approved
version of the budget includes tax hikes and addresses permanent fiscal shocks related to declining oil production.
OECD: Mexico Recovery Won’t Happen Before 2012
November 18, 2009
According to the Organization for Economic Cooperation and Development (OECD), Mexico’s economic recovery
won’t happen much before 2012, at which time it would expect economic indicators to recuperate to the precrisis
levels. In its update on the Mexican economy, the OECD maintained its expectation that the country's gross domestic
product (GDP) will contract 8% in full-year 2009, and it nudged down its growth estimate for 2010 to 2.7% from 2.8%.
In addition, the OECD said that it expects no inflationary impact from Mexico's decision to raise its value-added tax
rate next year to 16% from 15%, and it dropped its call for the central bank (Banxico) to cut rates further as economic
activity starts picking up. However, expectations for Mexico's inflation next year deteriorated further in the latest
biweekly survey of market participants by U.S. bank Citigroup’s Mexican unit Banamex. The median estimate of the
22 financial institutions participating in the poll saw inflation at 4.81% at the end of 2010, up from 4.54% in the
previous survey.
ECLAC: Mexico Leads Poverty Rate In Latin America
November 18, 2009
According to a recent study by the Economic Commission for Latin America and the Caribbean (ECLAC), Mexico has
the leading poverty rate in Latin America, with a rising percentage of poor population, an opposite trend when
compared to the rest of the region’s. ECLAC’s study indicated that Mexico was the sole State in Latin America to
register a worsening poverty rate, which increased by 3.1% between 2006 and 2008, meaning that in 2008, 34.8% of
Mexico’s population, or 37 million people, were in a poverty situation, above the 31.7% registered in 2006.
INEGI: Informal Employment Registers 700,000 New Players
November 14, 2009
According to the National Statistics Institute (INEGI), approximately 700,000 people have joined the ranks of informal
employment so far this year, taking the number of informal employees to approximately 12.4 million. The percentage
of the economically active population that is employed informally grew to 28.2% from January through September
2009, compared to 27% registered in the like 2008 period. Meanwhile, unemployment in Mexico City registered its
worst level this year during 3Q, with 371,547 unemployed people, and an 8.7% unemployment rate, the highest figure
in the past four years.
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Border & Migration
BBVA: Mexicans In The U.S. Send Less Money Home, Pay More Taxes
November 18, 2009
According to analysts from Spanish-Mexican bank Banco Bilbao Vizcaya (BBVA), Mexican immigrants in the U.S. are
paying more taxes in that country, reducing the amount of money they send back home every year. The report
indicated that the amount Mexicans destine to pay taxes in the U.S. surpasses the level of remittances they send to
Mexico. Last year Mexicans in the U.S. paid USD 53 billion worth of taxes while they sent only USD 25 billion to their
hometowns in Mexico. Although immigrants must pay taxes as any U.S. citizen does and have been well integrated in
society, they are not awarded any social aid such as health insurance or any other kind of assistance. In addition,
there are recent studies focusing on reverse remittances, which consist of money sent by friends and family in less
developed countries such as Mexico to help immigrants struggling in rich countries such as the U.S.
America’s Voice: Hispanics Are Key To The U.S. Political Map
November 18, 2009
According to a report by America’s Voice, Hispanics are key to the new U.S. political map and the upcoming 2010
census could yield as many as 12 seats in the House of Representatives. America’s Voice said Latino votes will
increase the seats in states like Texas (4), Arizona (2), Florida (1), Georgia (1), Nevada (1), Oregon (1), South
Carolina (1), and Utah (1), while Ohio, Illinois, Iowa, Louisiana, Massachusetts, Michigan, Minnesota, Missouri, New
Jersey, New York, and Pennsylvania might jointly lose 12 seats.
Mexico Urges Canada To Revise Visa Requirement For Mexicans
November 18, 2009
Mexico’s Congress urged Canada’s Parliament to revise as soon as possible the country’s refugee policy and start
procedures to ban the visa requirement established for Mexican nationals. In the framework of both countries’ XVI
Inter-parliamentary meeting, legislators from each state pledged to work on ways to facilitate and hasten migratory
procedures.
President Obama Seeks To Build 1000KM-Long Wall At U.S.-Mexico Border
November 18, 2009
U.S. President Barack Obama’s administration has asked the U.S. Congress to approve more funds for the
construction of a 1000km-long wall across the border with Mexico as a prevention measure against the current drugrelated
crime wave that has been affecting the country. Officials at the U.S. government have shown concern
regarding the proximity of Mexico’s most violent cities to the U.S. and an increasing migration of violence into the U.S.
border cities.
NYIIE: Latin America Sends Fewer Students To The U.S.
November 19, 2009
According to a recent report by the New York-based Institute of International Education (NYIIE), a nonprofit group that
conducted the study with the U.S. State Department’s support, while Asian countries are sending more students to
some of the U.S.’s and the world’s best-reputed colleges, Latin American countries are lagging behind. Confirming a
trend that could have political and economic repercussions in coming decades, China and India are each sending
twice as many students to U.S. universities as all South American countries combined, according to the report. Even
more striking, South Korea, with a population that is less than half that of Mexico, is sending more than five times
more students to U.S. colleges than Mexico is.
ALOD: Mexico’s Southern Border Is Main Obstacle To Reach The U.S.
November 18, 2009
According to the Latin American Association Of Development Organizations (ALOD) nongovernmental organization
(NGO), Mexico has become the main obstacle in the path of Latin American immigrants trying to reach the U.S. In
addition, the NGO said that such a trend makes violations to human rights even more dire.
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Politics
Mexico, Brazil To Coordinate Agenda As Part Of The U.N.’s Security Council
November 19, 2009
Starting January 2010, Mexico and Brazil will begin working together to contribute actively to drafting a peaceoriented
international agenda, as both states will occupy a nonpermanent seat at the United Nations’ (U.N.) Security
Council. The countries also pledged to work on international security matters and on building new security
agreements in the Latin American region.
Mexico Antiabortion Issue Climbs To The Federal Level
November 18, 2009
Legislators in the state of Veracruz became Mexico's 17th state to pass legislation declaring that life begins at
conception, then adopting a proposal that requires Congress to consider amending the Constitution to outlaw
abortion. A majority of the country's 32 states have now enacted antiabortion measures in response to Mexico City's
legislature permitting abortions in the first 12 weeks of pregnancy. Mexican states currently set their own laws on
abortion, but the constitutional proposal adopted by the Veracruz lawmakers is likely to make the issue a federal one.
Under the Constitution, a single state legislature can propose an amendment that must be considered by Congress,
and even pro-choice activists said that given the makeup of Congress—and what they called heavy lobbying by the
Roman Catholic Church—Veracruz's proposal stands a good chance of approval.
Congress Approves 2010 Spending For National Identity Card
November 18, 2009
Congress approved the suggested MXN 3 billion proposed by President Calderon earlier this year and in the 2010
federal budget for the nationwide issuance of biometric identity cards. The cards will carry the bearer's photograph,
information on fingerprints and biometric data, including facial and iris scans on a magnetic strip. Most Mexicans
currently use their voter ID cards for identification. Those cards contain a photo, signature, and one fingerprint, and
they will continue to be issued. Firms that have bid to manufacture the cards include Latin ID, Mainbit, Soltic,
Smartmatic Holding, Image Technology, and Cosmocolor.
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Justice, Safety & Crime
Aide Of Former President Bush Urges Weapons Ban To Slow Mexican Drug War
November 17, 2009
Robert C. Bronner, Customs and Border Protection (CBP) Commissioner during former U.S. President George W.
Bush’s administration, called on the U.S. to reinstitute the ban on assault weapons and take other measures to rein in
the war between Mexico and its drug cartels, saying the violence has the potential to bring down legitimate rule in that
country. Bronner also called for the U.S. to more aggressively investigate U.S. gun sellers and tighten security along
its side of the border, describing the situation as "critical" to the safety of people in both countries, whether they live
near the border or not. Bronner added that Mexico, for its part, needs to reduce official corruption and organize its
forces along the lines the U.S. does, such as a specialized border patrol and a customs agency with a broader
mandate than monitoring trade.
Mexico Fights Legacy Of Corrupt Police Force
November 18, 2009
According to analysts, President Calderon's three-year-long drug offensive has laid bare the extent to which crime
syndicates have infiltrated police agencies at virtually every level. Analysts said that by blurring the line between
crime fighters and gangsters, rampant graft stands as one of the biggest impediments to the Calderon campaign.
Amid the raging drug war, Mexican officials are trying to fix the police through a hurried nationwide effort that includes
better screening and training for candidates on a scale never tried before. At the heart of the overhaul is a "new police
model" that stresses technical sophistication and trustworthiness and that treats police work as a professional career.
Cadets and veteran cops are being forced to bare their credit card and bank accounts, submit to polygraphs, and
disclose family members to screeners to prove they have no suspicious connections.
TI: Mexico’s Corruption Perception Index Worsens When Compared To 2008
November 18, 2009
According to Transparency International’s Corruption Perceptions Index (CPI), which measures the perceived level of
public-sector corruption in 180 countries and territories around the world, Mexico’s corruption perceptions worsened
when compared to 2008 results by falling to 89th in 2009 from 72 a year earlier. Experts and analysts said the results
are due to an institutional weakness and to the lack of adequate governmental policies to address it.
Mexican Drug Cartels Recruiting Texas Teens, State Officials Warn
November 18, 2009
According to Steven McCraw, director of the Texas Department of Public Safety, Mexican drug cartels are reaching
into border-area schools to recruit new soldiers and killers, and state police officials are warning parents that those
efforts could expand into North Texas and throughout the state. McCraw said that the recruiting is done through
gangs, and warned parents to be wary. Dallas officials say they've seen no direct cartel influence in local schools.
They say, however, that cartels often use gangs to distribute drugs.
Former SRE Minister: Calderon’s War On Drug Lords Is A Mistake
November 20, 2009
Former Foreign Affairs Minister Jorge Castañeda said that President Calderon’s crackdown on drug cartels is a
strategic mistake and a misreading of public opinion’s feeling and response to the government’s action. Castañeda
suggested going back to the former underground "peaceful" relationship the government had with drug traffickers,
since Calderon’s strategy failed to drop crime and drug trafficking rates. Castañeda said that Calderon’s war
declaration on drug cartels was a plan to legitimate his controversial ascent to power. Castañeda made the comments
a few days after the publication of a book jointly written with former President Vicente Fox’s spokesman Ruben
Aguilar.
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Health & Science
Health Minister Travels To Russia, Serbia To Discuss A/H1N1
November 20, 2009
Mexico’s Health Minister Jose Angel Cordova Villalobos traveled to Russia and Serbia to strengthen multilateral
cooperation on epidemiology, mostly regarding the A/H1N1 influenza virus and also to discuss progress related to
chronic diseases such as cancer. The main objective of the visit was to strengthen cooperation between the health
ministries of the three countries.
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Arts & Culture
IADB, FCE Inaugurate First Spanish Library In Washington, D.C.
November 20, 2009
The Inter-American Development Bank (IADB) and Mexican publishing house Fondo de Cultura Economica (FCE)
opened the first library featuring only books in Spanish in Washington, D.C. The brand new Portico Bookstore is
located at the IADB’s Washington, D.C., facilities and has as many as 15,000 books. The FCE celebrated its 75th
anniversary in January this year during an international event on books and opened two bookstores abroad, one in
Buenos Aires, Argentina, and a second one in Washington, D.C.
INBA Invests MXN 600 Million In Mexico City’s Palace Of Fine Arts
November 18, 2009
The National Institute of Fine Arts (INBA) announced a MXN 600 million investment in the restoration of Mexico City’s
Palace of Fine Arts’ (Palacio de Bellas Artes) main hall. The investment is nearly equivalent to what was allocated for
the Vasconcelos Library and a quarter of INBA’s total budget for 2010.
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Other
INEGI Publishes Ruling Renaming Island In The DOF
November 18, 2009
The National Statistics Institute (INEGI) published in the official gazette (DOF) a ruling changing the name of the
Cerralvo island, in the Gulf of California, to Jacques Cousteau, named after the French naval officer, explorer,
ecologist, filmmaker, innovator, scientist, photographer, author, and researcher who studied the sea and all forms of
life in water. INEGI said it has prepared all the required procedures for the change and that it will submit them to the
National Registry of Geographic Information shortly.
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