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Energy
Government Resumes Severance Pay For LyFC Workers
November 25, 2009
The government said it will resume severance payments to former workers of electricity-distribution utility Luz y
Fuerza del Centro (LyFC), which was shut down in October. The Labor and Social Welfare Ministry (STPS) said that
about 17,000 workers from LyFC could pick up checks equal to about two years’ salary on average. The severance
payments include a bonus that is 30% lower than the bonus accepted by LyFC's other 27,500 workers prior to a
November 14 deadline. President Calderon ordered the closure of the firm, which distributed energy to Mexico City
and surrounding states, citing LyFC's massive financial losses. The Mexican Electricians Union (SME) is still seeking
an injunction against the layoffs in a lower Mexican court.
Clipper Secures Funding For Wind Turbines To Supply Power To Walmex
November 26, 2009
U.S.-based energy supplier Clipper announced that its U.K. unit, Clipper Windpower, was awarded a USD 80.66
million loan by the U.S. Export-Import Bank (Ex-Im Bank) to finance the acquisition of 27 turbines to supply 67.5
megawatts (MW) of power to Walmex stores, the Mexican unit of U.S. retailer Wal-Mart. The energy supply to
Walmex will be carried out through a project owned by Electrica del Valle de Mexico, a subsidiary of French power
firm Electricite de France’s (EDF) renewable energies unit EDF Energies Nouvelles. It is Ex-Im Bank's first project
financing for wind power.
U.S. DOJ: ABB’s Former Executive Arrested In Bribery Scheme In Mexico
November 26, 2009
According to the U.S. Department of Justice (DOJ), the former general manager of the Sugar Land, Texas-based unit
of Swiss engineering group ABB was arrested by U.S. authorities for his alleged role in a conspiracy to bribe Mexican
officials to secure contracts with Mexican state-owned power firm Comision Federal de Electricidad (CFE). John
Joseph O'Shea, 57, was charged in an 18-count indictment that included conspiracy, violations of the Foreign Corrupt
Practices Act, international money laundering and falsification of records in a federal investigation. The indictment
alleges that O'Shea arranged payments to multiple officials at CFE in exchange for contracts worth nearly USD 100
million.
Halliburton: Pemex’s Reduced Activity To Affect Negatively Its 4Q Profit
November 26, 2009
U.S. oil services provider Halliburton said that reduced activity by Mexican state-run oil firm Petroleos Mexicanos
(Pemex), a major customer, will drag down fourth-quarter profit by USD 0.02 per share. Houston-based Halliburton
said Pemex decided to reduce activity because of low natural gas prices and other constraints. Pemex said last week
its crude production dropped 7.1% in the first 10 months of this year amid declining reserves.
FOW Awards Pemex Recognition For International Cover Options Against Risks
November 22, 2009
U.K.’s global derivatives and risk management industry magazine Futures and Options World (FOW) awarded
Mexican state-run oil firm Petroleos Mexicanos (Pemex) recognition for the international cover options against the risk
of reductions in oil prices system it set up. The “most innovative or creative use of derivatives” recognition was
awarded to Pemex, as the firm’s cover operations allowed Mexico’s federal government to prevent reductions in
global oil prices from affecting gravely the execution of the country’s 2009 expenditures budget, according to the
Finance and Public Credit Ministry (SHCP).
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Mining
Authorities Revoke Canadian New Gold Mining Permit
November 20, 2009
Authorities ordered Canadian-owned gold miner New Gold to halt operations in the open-pit mine of San Pedro, in
north-central the state of San Luis Potosi, at a colonial-era hamlet where residents say blasting has damaged the
landscape and chemical runoff threatens to contaminate the water supply with cyanide. The Vancouver-based firm
vowed to appeal the order, which caps a three-year battle by activists against the open-pit mine in San Pedro.
Authorities revoked the mine's environmental permit in accordance with an October court ruling that the license was
improperly granted. Operations apparently continued until the government sent an inspection team to the mine and
explicitly ordered a shutdown.
Goldgroup To Extract Gold In Veracruz
November 20, 2009
Canadian gold miner Goldgroup announced it acquired a 70% share worth some USD 15 million in peer Lundin
Groups’ NGEx Resources subsidiary’s Caballo Blanco gold project in the state of Veracruz. The 15,000 hectares
Caballo Blanco project’s capacity was estimated at some 75,000 ounces of gold per year, with a low effective
production cost.
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Trade & Investment
Banxico: FDI To Mexico In 3Q Falls By USD 637 Million
November 25, 2009
According to figures by the central bank (Banxico), Mexico saw an outflow of USD 637 million in foreign direct
investment (FDI) in 3Q, the first time there has been a decline since the second quarter of 1967. Banxico said the
outflow in FDI in the third quarter brought to USD 9.75 billion the total inflows for the first nine months of 2009,
compared with USD 16.91 billion in the first nine months of 2008. Banxico said there was a USD 1.06 billion outflow
under the category of new investments, offset by inflows of USD 74 million from reinvested profits and USD 344
million in intercompany accounts.
INEGI: Mexico Posts Trade Surplus In October
November 24, 2009
The National Statistics Institute (INEGI) announced that Mexico ran up a surprise trade surplus in October as a
recovery in exports accelerated after the slump suffered earlier in the year. INEGI said the country had a trade
surplus of USD 96 million last month, compared with a deficit of USD 3.29 billion in October 2008. Exports fell 10%
from the year-ago month to USD 21.98 billion, with oil exports down 4.6% and manufacturing exports down 11%.
Imports fell 21% to USD 21.88 billion, led by a 30% drop in consumer goods imports. Imports of intermediate goods,
such as components used in production processes, were down 18% from the year-ago month to USD 16.1 billion.
The main surprise was on exports, where shipments abroad grew 6.2% in seasonally adjusted terms from
September, for a third consecutive month of growth.
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Banking, Insurance & Finance
CNBV: Bank Loans Flat In October At MXN 1.889 Trillion
November 26, 2009
According to the National Banking and Securities Commission (CNBV), Mexico's banks reported MXN 1.889 trillion in
loans on their books at the end of October, nearly unchanged from the year-ago period, as a recession crimped
lending. Commercial loans grew 3.4% to MXN 896.95 billion, while mortgage lending rose 8.5% to MXN 307.84
billion, and loans to government bodies surged 32.4% to MXN 222.25 billion. CNBV said, however, that consumer
loan balances fell 18.3% to MXN 397.16 billion, with credit card loans tumbling 24% to MXN 235.65 billion. In a
positive sign, lending expanded 0.8% compared to the previous month, led by growth in personal, commercial,
government and mortgage loans.
Consar Has Destined MXN 46 Billion For Infrastructure And Housing This Year
November 25, 2009
Top officials at Mexico’s pension fund regulator Consar said that the institution has destined as much as MXN 46
billion for infrastructure and housing projects in 2009. Consar specified that so far this year it has financed road
infrastructure works with approximately MXN 15 billion and housing projects with about MXN 31 billion.
BBVA Bancomer Sees Growth In Mutual Funds
November 24, 2009
Spanish-Mexican bank BBVA Bancomer said it sees the local mutual fund industry growing at an accelerated pace in
the next three years as low interest rates spur retail investors to swap traditional savings accounts for higher-yielding
funds. BBVA said it expects the mutual fund industry could see MXN 780 billion in additional assets under
management by the end of 2012. The industry is already enjoying expansion, thanks to low interest rates and stable
financial markets. According to the Mexican Securities Industry Association (AMIB), mutual fund assets reached MXN
954.49 billion at the end of October, a 12.5% increase from MXN 848.65 billion a year earlier.
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Business & Industry
Grupo Bimbo Prepays USD 300 Million Of Revolver Facility With Own Resources
November 24, 2009
Mexican bread maker Grupo Bimbo announced that it has prepaid half of its USD 600 million revolver facility due July
2010 with its own resources. Bimbo said its total debt following the prepayment is now MXN 37 billion or some USD
2.87 billion. Bimbo – one of the world's largest bakeries – more than doubled the size of its operations in the U.S.
through the acquisition in January of Weston Foods, now part of Bimbo Bakeries USA.
SEGOB Awards Identity Card Contract To Smartmatic International Holding
November 24, 2009
Netherlands-based provider of voting services and solutions Smartmatic International Holding secured a MXN 299.4
million contract from the Ministry of Interior (SEGOB) to develop Mexico’s new national biometric identity card and the
technology to operate it. Mexican bidders for the tender such as Soltic, Cosmocolor, Maindbit, Latin ID and Image
Technology cited irregularities in the process and some said they would appeal the resolution. Smartmatic has
worked in elections in Venezuela, Bolivia, the Philippines and the U.S.
Heinz Seeks To Increase Presence In Mexico; Eyes Emerging Markets
November 25, 2009
Executives at U.S. food company Heinz said that they seek to increase their presence in Mexico as the firm’s
operations in the country have been rising at a fast pace since 2007. Heinz said that it now accounts for 12% of the
ketchup supply in Mexico, where it now has 150 ketchup sales-and-marketing employees. Heinz is excited about
Mexico because the company's combined retail and food-service sales of ketchup there are growing at an annual rate
of 25%. The shift illustrates how Heinz is positioning itself for growth in emerging markets.
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Automotive
Elektra Cancels Plant Project To Assemble Chinese FAW Cars
November 23, 2009
Mexican conglomerate Grupo Salinas’s retail arm Elektra announced the cancellation of a plant to assemble vehicles
from Chinese car maker First Automobile Works Group (FAW) as goals were unmet. Executives at the firm said they
had a target to sell some 25,000 cars a year in 2008 but they only sold 5,000 and they expect a like figure this year.
Elektra said that the lower-than-expected sales of their cars are due to a depreciation of Mexico’s currency and a
reduction in their target client’s income. With the current outlook, executives from Elektra said they are studying the
possibility of exiting the automobiles market.
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Housing & Mortgaging
Prudential To Raise MXN 6.5 Billion For Real Estate Fund In Mexico
November 26, 2009
Prudential Real Estate Investors in Latin America (PREI), the Latin American real estate investment subsidiary of
global financial firm Prudential Financial, announced it plans to raise about 6.5 MXN billion to invest in Mexico's
industrial property market through the listing of an infrastructure trust on the local stock exchange. The Prumex
Industrial III fund will use the proceeds from the listing to buy and develop industrial properties. The brokerage arm of
Spanish-Mexican bank BBVA Bancomer is acting as the placement agent in the deal. The trust's objective is to reach
an internal rate of return of 16% to 22%, and a yield of 8% to 12%.
Creditors Of Urbi Desarrollos Agree To Amend Debt Terms
November 23, 2009
Mexican homebuilder Urbi Desarrollos Urbanos announced it renegotiated covenants on local bonds to allow for a
temporary increase in its debt ratios. Urbi said holders of two series of local bonds agreed to increase to three times
from two times the company's ratio of debt to earnings before interest, taxes, depreciation and amortization
(EBITDA). Urbi's debt was 2.6 times EBITDA at the end of September. The breach of the debt covenants led to
downgrades of Urbi's local ratings by Moody's Investors Service and Standard & Poor's earlier this month, affecting
MXN 1.06 billion.
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Construction & Infrastructure
Cemex, Venezuela Government Representatives Attend First Hearing In Mexico
November 23, 2009
Representatives of Mexican cement maker Cemex and Venezuelan President Hugo Chavez’s government attended a
first hearing in Paris regarding the legal procedures the firm decided to continue against the leader’s administration as
he decided last year to expropriate the company's assets in Venezuela. Cemex said that the World Bank's (WB's)
International Center for Settlement of Investment Disputes (ICSID) restarted procedures against Venezuela for the
expropriation of its operations there. Recent information suggested that Cemex and the government of Venezuela
had agreed to negotiate payment for the company's assets under Chavez's terms.
Holcim-Apasco Creates New Infrastructure Unit In Mexico
November 24, 2009
Swiss cement maker Holcim and its Mexican partner Apasco, known as Holcim-Apasco announced the creation of
new infrastructure subsidiary Apacim by splitting some of its businesses. Apacim will focus on large infrastructure
projects such as paving roads, highways and large streets, as well as environmental, hydraulic and energy projects in
a bid to boost sales of pre-mixed concrete and cement. Apacim provided the materials for recent projects such as
northern Mexico City’s 2nd floor or the Mazatlan-Durango highway.
IDEAL To Invest In Commercial And Services Centers At Metro Rosario Station
November 24, 2009
Mexican billionaire Carlos Slim’s construction company IDEAL announced that it will invest over MXN 800 million for
construction of a commercial and services center, also referred to as a multimodal terminal, at Mexico City’s subway
Rosario station. It is the second phase of the Mexipuerto Ciudad Azteca Bicentenario terminal. Earlier this year IDEAL
started the first phase of the project at the Modal Azteca (Etram) subway station.
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Retail
INEGI: September Retail Sales Down 4.6% On Year
November 23, 2009
According to the National Statistics Institute (INEGI), retail sales in Mexico fell in September from August and from a
year ago as the recession of the past year continued to affect purchases of durable goods. INEGI said retail sales fell
4.6% from September 2008, and were down 0.26% from August in seasonally adjusted terms. The decline in sales
continued to be led by a drop in sales of durable goods, such as home appliances, computers, cars and others. Food
and beverages sales rose from a year ago.
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Telecommunications & Technology
Cofetel Publishes Bidding Rules For Wireless Auction
November 23, 2009
The Federal Telecommunications Commission (Cofetel) published in the Official Gazette (DOF) bidding rules for
wireless spectrum auctions that could bring more competition to the country's mobile telephony industry. Cofetel will
auction nine blocks of spectrum in the 1850MHz-1990MHz band in eight of the country's nine mobile telephonyoperating
regions, including the capital Mexico City. Cofetel said it will also offer in a separate auction seven blocks of
spectrum between 1710 MHz and 2170 MHz in all nine operating regions, which could give auction winners a
nationwide presence with spectrum capable of supporting third-generation (3G) wireless services such as high-speed
Internet. Cofetel said it will offer sufficient bandwidth to allow existing operators to meet their spectrum needs as well
as open the door to new investors. Bidders will have to be cleared by the Federal Competition Commission (CFC) in
order to participate. An auction date was not specified.
Axtel Eyes Mobile Telephony Market
November 24, 2009
Mexican fixed-line telephone operator Axtel said it is considering entering the mobile telephony market as it eyes
upcoming frequency auctions that would help it expand its customer base. Axtel, along with other small and big
players, is waiting for the government confirmed tender to add a frequency capacity for wireless phone services.
Mexico has set preliminary terms for the frequency auctions in a renewed effort to boost competition in a market
dominated by tycoon Carlos Slim's America Movil. Monterrey-based Axtel said it would consider partnering with
another company to tap the wireless market. In addition, Axtel demanded authorities revoke Slim’s fixed telephony
giant Telmex’s concession as the latter failed to comply with interconnection rulings.
MVS Plans Broadband Deal With Clearwire
November 27, 2009
Mexican communications firm MVS Comunicaciones announced it has reached a preliminary agreement with U.S.
Wireless broadband ISP services provider Clearwire and U.S. processor technologies firm Intel to invest USD 700
million in a wireless broadband network covering 23 cities. MVS said that a formal joint-venture deal hinges on
renewal by the Communications and Transportation Ministry (SCT) of the company's spectrum licenses in the 2.5
GHz band in about eight cities, including the key markets of Monterrey and Guadalajara.
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Media & Entertainment
SCJN Invalidates Executive Branch’s Faculties On Radio And TV
November 27, 2009
The Supreme Court (SCJN) invalidated the federal Communications and Transportation Ministry’s (SCT) powers to
approve the National Frequencies Framework, award concessions to use, exploit and benefit from radio and TV
frequencies and declare tenders for the mentioned purposes void. SCJN said that the federal Telecommunications
Commission has an exclusive power to fix, conduct and control governmental policy on radio and TV. Meanwhile, the
Ministry of Interior (SEGOB) said that so far in 2009, 58 illegal radio stations have been located and dismantled.
Televisa Capitalizes La Sexta With MXN 74.5 Million
November 27, 2009
Mexican media conglomerate Grupo Televisa announced that it capitalized Spanish open TV firm La Sexta, in which
it holds a 40% share, with MXN 74.5 million or some EUR 3.9 million. La Sexta’s controls about 4% of Spain’s TV
audience and its majority shareholder is Spain’s audiovisual products supplier Imagina, a company made from
Mediapro and Globomedia.
CIE’s Creditors Approve Restructuring Plan For MXN 650 Million In Debt
November 23, 2009
Mexican out-of-home entertainment company Grupo Interamericano de Entretenimento (CIE) announced that its
creditors approved a MXN 659 million debt-restructuring plan, awarding it more time to meet its financial
requirements. According to analysts close to the operation, bondholders of CIE will earn higher yields as a result of
the extended maturity of the bonds; a raise of about 300 basis points above the benchmark 28-day TIIE interbank
rate.
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Economy
WB Approves Loans For As Much As USD 2 Billion For Mexico
November 24, 2009
The World Bank (WB) announced that its board of directors has approved two loans to Mexico for nearly USD 2
billion to fund counter-cyclical fiscal programs and A/H1N1 Influenza prevention measures. The WB said the largest
loan, consisting of USD 1.5 billion payable in November 2021, will fund projects that include temporary employment
programs for about 600,000 people a year in 2009 and 2010 and boosting non-oil taxes to 10.3% of gross domestic
product by the end of next year.
Economic Authorities, Analysts: 2010 Looks Brighter For Mexico's Economy
November 20, 2009
According to some national leaders and experts, rising oil prices and increased exports are slowly dragging Mexico's
economy out of a severe recession, but the nation's financial system still confronts fundamental challenges. Deputy
Finance and Public Credit Minister Alejandro Werner said, for example, that the government expects economy.
Earlier this month, the government released figures that showed the economy grew 2.9% in 3Q over the previous
three-month period.
President Calderon Says Poverty Is Now His First Priority
November 26, 2009
President Calderon said that the top priority in the second half of his term will be reducing poverty, after the war
against drug cartels took center stage in the first three years of his administration. Calderon launched a major
offensive against drug cartels shortly after taking office in December 2006, and, as recently as June of this year, said
that "our most important objective as a government is crime, and organized crime." But with the offensive bogged
down amid drug-related violence in some Mexican cities and government figures showing a significant increase in
poverty, Calderon set the new priority in a recent speech at an anti-poverty conference in Mexico City.
Fitch Downgrades Mexico, Cites Lower Oil Output
November 23, 2009
U.S. rating agency Fitch Ratings lowered its rating on Mexico's debt, citing the global economic and financial crisis as
well as falling oil production, which has accentuated weaknesses in the nation's fiscal profile. Oil income, which
constitutes more than one-third of government revenues, has been hurt by falling prices and production. In Fitch's
view, the country's energy reform efforts last year weren't enough to provide sufficient confidence that oil production
won't continue to decline over the medium term. And while recent tax measures were a step in the right direction,
Fitch said more is needed to address structural weaknesses. As a result, the nation's foreign currency issuer default
rating was lowered by one notch to BBB, or two notches above junk territory. The move means the Mexican
government and companies in the country may have to pay higher borrowing costs.
Banxico: 3Q Current Account Deficit At USD 1.91 Billion
November 25, 2009
The central bank (Banxico) said Mexico's current account deficit narrowed in the third quarter from a year ago to USD
1.91 billion. Banxico said the third-quarter result brought the accumulated deficit for the first nine months of the year
to USD 4.54 billion, equivalent to 0.7% of gross domestic product. A USD 3.15 billion trade deficit in the third quarter
and deficits in services were offset by a USD 5.45 billion surplus in transfers, including USD 5.36 billion in remittances
from Mexicans living abroad.
Banxico: Early November Inflation Cools, Eases Rate Pressure
November 24, 2009
According to data from the central bank (Banxico), Mexico's annual inflation rate fell to its lowest in more than a year
and a half in early November, easing pressure on the institution to raise interest rates soon. Consumer prices rose
3.92% in the year through November 15, down from 4.65% at the end of October. Prices fell for tomatoes, chicken
and local telephone services.
INEGI: October Unemployment Falls To 5.9% From 6.4% In September
November 24, 2009
According to the National Statistics Institute (INEGI), Mexico's unemployment rate fell in October from the previous
month as the economy started to recover from a deep recession. INEGI said that unemployment fell to 5.9% from
6.4% in September but was higher than the 4.1% reported in October 2008. INEGI also said that urban
unemployment fell to 7% from 7.9% in September but was up from 4.9% a year earlier. INEGI noted however, that
Mexican manufacturers hired more workers in September than the previous month for the first time in nearly two
years. INEGI said employment in the manufacturing industry rose 0.09% from August in seasonally adjusted terms,
following 20 consecutive months of decline.
SHCP: Mexico’s Country Risk Downward Trend Persists
November 24, 2009
According to the Finance and Public Credit Ministry’s (SHCP) report on J.P. Morgan’s Emerging Markets Bond Index,
Mexico’s country risk stood at 167 basis points (B/P) on November 20, 15 BP below the latest report. Mexico’s
country risk has been falling steadily in the past weeks
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Border & Migration
Mexico New Border Security System To Stem Flow Of Illegal Items Has Downsides
November 25, 2009
Mexico’s government is modernizing its ports of entry along the U.S. border with new infrastructure that features
gates, cameras and vehicle scales meant to help curtail the flow of drug money and weapons to the country’s
organized crime groups. Nevertheless, the recently implemented System of Supervision and Vehicular Control , which
is still in the testing phase ahead of its scheduled January rollout, causes daily and regular traffic jams at peak
crossing times in late afternoon. Cross-border trips from San Diego that once took five minutes can take an hour or
more. The Governor of the state of Baja California, fearing more damage to the collapsing tourism industry, has
lobbied federal authorities to scale back the inspection process. But President Calderon, under pressure to show
progress in his nearly three-year offensive against drug cartels, declined, saying the measures are a necessary
sacrifice.
U.S. CBP: Arrests Of Illegal Immigrants Drop 25% Near Border
November 25, 2009
According to the U.S. Customs and Border Protection (CBP), arrests of illegal immigrants along the California-Mexico
border declined 25% this year as a weak economy and bolstered enforcement efforts appear to be discouraging treks
north. The downward trend is evident across the Southwest border as apprehensions fell to levels not seen since the
early 1970s. The U.S. Border Patrol arrested 556,000 people last year, 152,200 of them in California, according to
statistics released for the federal fiscal year ending September 30. Apprehension levels, considered the best available
indicator of illegal crossing activity, have fluctuated for decades, but have steadily declined since 2000, when there
were 1.6 million arrests.
Mexico Could Destine About MXN 2 Billion For Immigration Programs
November 24, 2009
Legislators from the ruling National Action Party (PAN) announced that the government could destine as much as
MXN 2 billion to several programs to benefit Mexican immigrants abroad, mostly in the U.S., if a bill they submitted to
the Lower Chamber is approved by a majority in the full house. Resources would come from a reallocation of public
funds and would finance better consular protection for immigrants and other programs in charge of some of Mexico’s
federal ministries.
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Politics
Senate Decides To Keep Three Ministries
November 24, 2009
Mexico’s Senate’s full house decided to discard the Executive Branch’s proposal to eliminate the Tourism Ministry
(SECTUR), the Public Function Ministry (SFP) and the Agrarian Reform Ministry (SRA). Legislators from opposition
parties Institutional Revolutionary Party (PRI), Democratic Revolution Party (PRD) and the Green Ecologist Party of
Mexico (PVEM) voted against the proposal of President Calderon’s – from the ruling National Action Party’s – to
eliminate the Ministries in a bid to save public funds.
AMLO Announces Candidacy For 2012 Elections
November 23, 2009
Mexican leftist politician and former President Calderon’s rival during 2006 Presidential elections Andres Manuel
Lopez Obrador (AMLO) unofficially announced his candidacy for Mexico’s 2012 presidential elections, saying that the
same corporate and governmental mafia that gave Calderon the power in 2006 has already chosen Enrique Peña
Nieto, current governor of the State of Mexico (Edomex) from the Institutional Revolutionary Party (PRI), to lead the
country during the next term. AMLO said he will seek the presidency again in a bid to set up his “National Alternative
Project”.
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Justice, Safety & Crime
U.S., Mexico Align Against Common Foe: Narcotics Trade
November 23, 2009
According to interviews to security experts and former security officials in Washington and Mexico City, Mexican and
U.S. authorities are increasingly setting aside their differences to share sensitive intelligence and computer
technology, military hardware and U.S. know-how to train and vet Mexican agents. John Feeley, the deputy chief of
mission at the U.S. Embassy in Mexico said however, that the newly robust partnership is still risky, uneasy and
freighted with old suspicions. U.S. law enforcement officials said it is being forged with the assurance by the U.S.
State Department that Mexico's weak law enforcement agencies will overcome a history of incompetence and
corruption, and that the closed ranks of the Mexican military, which operates with virtual impunity, can get past its
hostility to outsiders. U.S. officials also acknowledge that the growing cooperation is still a gamble.
U.S. Priorities Shifting In Mexico's Drug Fight
November 21, 2009
According to a senior official from the Obama administration, U.S. assistance to help Mexico fight drug traffickers will
probably continue beyond the allotted three years of the Merida Initiative, with expanding cooperation but without joint
law enforcement or military operations "on Mexican soil any time soon.” The USD 1.4 billion Merida Initiative, an antidrug
package designed under the Bush administration, ends next year. The official outlined Obama administration
priorities in supporting the government of President Calderon in its battle with the cartels and the violence and
corruption they engender – much of it along the Texas border. U.S. and Mexican officials are looking for ways to
gradually move the focus of their efforts from dismantling and disrupting cartels to strengthening Mexico's democratic
institutions and weeding out corruption.
President Calderon Inaugurates New Federal Police Intelligence Center
November 24, 2009
President Calderon inaugurated the brand new Federal Police Intelligence Center of the Public Security Ministry
(SSPF), saying that we must all propose not to rest until it is quite clear that “we have an honest, capable Federal
Police Force, in which Mexicans can trust: let this police force be an example because of its loyalty, effectiveness,
service, and capacity for unreserved commitment to the public security of Mexican families." During the ceremony,
Calderon urged Federal Police officers not to allow crime to infiltrate their ranks or to tolerate complicity or dishonesty
amongst their colleagues.
President Calderon Defends Strategy Against Drug Cartels
November 26, 2009
President Calderon said that crime gangs and drug cartels were "taking over Mexico" before he launched his
offensive against them, adding that the crackdown has achieved uneven results. Calderon's comments were taped
prior to his recent statement that reducing poverty is now "the first priority" for his administration. Nevertheless,
Calderon made it clear he is not abandoning the war on drugs and said it is now an active fight.
Security Firms At U.S. Mexico Border Thrive On Crime Wave
November 23, 2009
U.S. security training companies in Texas and elsewhere, bolstered by an alarming increase in kidnappings and
violence in Mexico, are finding a new niche in clientele: Americans and Mexicans living, visiting and working across
the border. Companies’ executives such as a Houston-based private intelligence and global risk-management
company ASI Group have noted that “Mexico has been very good for business lately.” Mexico is often seen as the
kidnap capital of the world, with the U.S. Department of State (DOS) reporting in an advisory for travelers that dozens
of Americans have been kidnapped there in recent years, and most cases remain unsolved. Accurate figures on the
true kidnapping rate are not available but a recent Mexican congressional report puts the figure at 18 a day
nationwide, with only two of every 18 reported to authorities.
U.S. Authorities Indict 15 Suspects With Links To Mexican Cartel In Chicago
November 23, 2009
U.S. federal authorities said that they struck a blow against a cell of major Mexican drug trafficking group La Familia
Michoacana operating in the Chicago area, indicting 15 members responsible for one of the more significant cocaine
distribution networks there. The investigation, officials said, uncovered a ''command and control'' group distributing
thousands of pounds of cocaine for La Familia Michoacana, a cartel known for its messianic leaders and propensity to
behead enemies. Officials said that the indictments in Chicago represent a continuing resolve to crack down on the
cartel north of the border.
U.S. Demands Further Intel On La Familia Michoacana Drug Cartel
November 25, 2009
U.S. Ambassador to Mexico Carlos Pascual said that his country needs further intelligence and information on the
way the La Familia Michoacana drug cartel operates in order to better cooperate with Mexican authorities. During a
ceremony to swear in the new members of the Peace Corps program, designed for U.S. citizens to serve their country
in the cause of peace by living and working in developing countries, Pascual said that drug trafficking and cartels
such as La Familia are a new threat for hemispheric and global security.
U.S. CBP: Drug Seizures At U.S.-Mexico Ports Increase 20%
November 24, 2009
According to U.S. Customs and Border Protection (CBP) officials, more than 145 tons of narcotics were seized at
U.S.-Mexico ports of entry in San Diego and Imperial counties during the fiscal year that ended September 30, a 20%
increase from the previous fiscal year. Authorities said that the drugs were confiscated at border checkpoints at San
Ysidro, Otay Mesa, Tecate, Calexico and Andrade. Methamphetamine seizures increased by 82%, followed by heroin
seizures at 51% and marijuana seizures at 21%. Cocaine seizures decreased by 13%. The CBP said that the drugs
seized at the California border checkpoints accounted for 40% of the marijuana and 71% of the methamphetamine
confiscated at ports of entry to the U.S.
AMCHAM: 88% Of Mexicans Buy Piracy For About 9% Of Country’s GDP
November 25, 2009
According to recent figures from The American Chamber of Commerce of Mexico (AmCham) approximately 88% of
Mexico’s population purchases pirated goods for some USD 74.6 billion per year, or nearly 9% of Mexico’s Gross
Domestic Product (GDP). The study indicated that eight out of every ten Mexicans purchase piracy frequently and
believe such acquisitions are not only normal, but necessary.
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Health & Science
SSA Discards Risk From A/H1N1 Vaccines
November 25, 2009
Mexican Health Minister Jose Angel Cordova Villalobos said that the vaccine against the A/H1N1 influenza virus that
will be distributed in Mexico is not the same that was distributed in Canada and which caused dire allergies amongst
the country’s population. Canada’s inappropriate vaccines were manufactured by GlaxoSmithKline while Mexico’s will
be manufactured by French company Sanofi Aventis. The announcement comes at a time when vaccination
campaigns have kicked off in Mexico City. In addition, the World Bank (WB) allowed a USD 491 loan to Mexico to
contribute to the prevention and control of the A/H1N1 influenza virus.
NASA Astronaut With Mexican Origins: Mexico Needs Its Own Space Program
November 25, 2009
NASA astronaut Jose Hernandez, of Mexican origin, said he wants to help Mexican officials start the country's first
space agency, although he discarded any plans of leaving his post at NASA. Mexico is already working on a National
Space Agency, and Hernandez said he is willing to cooperate and help the program get off the ground. Hernandez,
the U.S.-born son of Mexican migrant farm workers who spent much of his childhood moving between Mexico and the
U.S., lobbied for a space program in meetings with Mexican legislators earlier this month. He says officials must
invest more money in science, technology and education to make Mexico more competitive and to diversify its
economy.
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Sports
Lorena Ochoa Secures LPGA’s Best Player Award For Fourth Straight Year
November 25, 2009
Mexican golfer Lorena Ochoa secured the LPGA’s player-of-the-year recognition for the fourth straight year by ending
second at the LPGA Tour Championship, held at the Houstonian Golf and Country Club.
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