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Energy
New Pemex Board Inaugurated
May 14, 2009
Petroleos Mexicanos seated four independent members to its board Thursday in an effort to make the company more
transparent. The new members expand Pemex's board to 15. The other 11 board members come from the federal
government and the oil union. The board will draft regulations and set up new contract models allowed under an
energy reform Congress approved last fall. The reform allows for incentive–based service contracts Pemex hopes will
attract new players to the industry. The incoming board members are Jose Fortunato Alvarez Enriquez, Hector
Moreira Rodriguez, Rogelio Gasca Neri and Fluvio Cesar Ruiz Alarcon.
Pemex Sells USD 1.3 Billion In Bonds
May 12, 2009
Pemex announced it issued USD 1.3 billion in bonds in both the local and foreign markets. Pemex issued USD 769
million in three–year and seven–year bonds in the local market. The three–year bonds will have a variable interest
rate based on Mexico's TIIE interbank rate, and the seven–year bonds will have a fixed rate. Meanwhile, Pemex
issued USD 547 million in 13–year bonds in the international market. Earlier this year, Pemex received authorization
to issue up to MXN 5.3 billion in the local market.
Pemex To Start Construction Of Salamanca Sulfur Unit In July
May 11, 2008
Pemex announced plans to begin building a 160–ton–a–day sulfur recovery unit at the Salamanca oil refinery, in the
state of Guanajuato, as part of a wider effort to improve gasoline quality. A total of 20 companies have registered for
the bidding round, including France's Technip and Korea’s Samsung Engineering. Pemex originally planned to
announce a winner in April, but it is still holding meetings with registered bidders for the 18–month project. Pemex
also plans to build similar units at other refineries to improve fuel quality and reduce carbon emissions.
Pemex Awards Several Contracts To Houston–Based Firms
May 9, 2009
Pemex has awarded Houston-based oil companies contracts to help it drill some 17,000 wells. In order to replace the
millions of barrels of crude per week it has lost from dying offshore fields, Pemex has hired Schlumberger,
Weatherford International and other Houston companies to do much of the work, awarding them contracts in recent
weeks worth nearly USD 1.5 billion. Pemex has said that it might consider hiring foreign engineering companies as
needed if the completion of its investment projects is compromised due to the lack of national engineering resources.
Pemex Reduces Natural Gas Prices By 10%
May 14, 2009
Pemex announced it will cut natural gas prices for consumers by 10% starting at the end of June this year. Mexico is
a net importer of natural gas despite having sizable resources; therefore, Pemex has set a goal to increase output
enough to halve gas imports, possibly as early as this year.
CFE Announces Winner To Build Oaxaca I Wind–Powered Electricity Plant
May 14, 2009
The Federal Electricity Commission (CFE) announced it awarded a Mexican consortium formed by Energia y
Recursos Ambientales and Energias Ambientales de Guadalajara a contract to build the Oaxaca I wind–powered
electricity facility. The plant will have a 101 MW installed capacity and is scheduled to start operating in 2011. Other
bidders included Acciona Energia Mexico; Enerfin Sociedad de Energía, Elecnor and Leasing Operations de Mexico.
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Mining
Gmex Makes USD 1.55 Billion Offer For Asarco
May 15, 2009
Mexican miner Grupo Mexico (GMex) formalized its USD 1.55 billion offer for bankrupt U.S. copper miner Asarco LLC
by filing its own proposal for Asarco's reorganization in a Texas court. GMex, which acquired Asarco in a leveraged
buyout in 1999, but lacks board control of the company due to the bankruptcy, is competing against a USD 1.7 billion
offer from India's Sterlite Industries. Both potential buyers have now filed their own reorganization plans with the
bankruptcy court. A U.S. bankruptcy judge said he would maintain protection for Sterlite’s deal, but left open the door
to credible rival proposals. GMex appealed the judge's decision to uphold Sterlite Industries.
ICA Fluor To Build Copper And Zinc Mine
May 15, 2009
The industrial engineering, procurement and construction company jointly owned by U.S. Fluor and Mexican ICA, ICA
Fluor, announced it will build the “El Boleo” copper and zinc mine at Mexico’s largest cobalt extracting area, which
belongs to Canadian–Korean mining firm Baja Mining Corp, and which is located in the state of Baja California Sur.
ICA Fluor and Baja Mining said they have signed a letter of intent and are currently negotiating general terms and
conditions of the contract. Investment to develop “El Boleo” was estimated at USD 407 million.
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Trade & Investment
INEGI: February Gross Fixed Investment Falls 12.1%
May 11, 2009
According to the National Statistics Institute (INEGI), the country’s gross fixed investment slumped 12.1% in February
from the year–ago period. Spending on equipment and machinery in February plummeted 15% over the year–ago
period largely due to a severe drop in automobile production. Investment in domestically produced machinery was
down 15.4% and imported machinery was 14.8% lower. Construction activity fell 10.3% as spending on residential,
commercial and industrial projects dropped sharply.
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Banking, Insurance & Finance
CNSF: Mexico 1Q Insurance Sector Premiums Up 15.9% To MXN 65.13 Billion
May 11, 2009
The National Commission for Insurance and Finance (CNSF) announced that the sector's 1Q direct premiums grew
15.9% year–on–year to MXN 65.13 billion. The CNSF said premiums from property and casualty policies rose 38.8%
to MXN 30.54 billion, largely due to the renewal of a big two–year contract with Pemex. Within the property and
casualty segment, auto insurance premiums fell 9% to MXN 12.4 billion as a recession crimps new vehicle sales.
Accident and health insurance premiums increased 3.1% to MXN 9.23 billion, annuity premiums rose 10.2% to MXN
2.03 billion, while life insurance premiums were nearly flat at MXN 23.32 billion. The sector had an operating profit of
MXN 1.05 billion and net profit of MXN 4 billion in the quarter.
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Business & Industry
SHCP: Government Launches MXN 15 Billion Rescue Plan After Influenza Crisis
May 11, 2009
The Finance and Public Credit Ministry (SHCP) said that it will award as much as MXN 15 billion in an aid package to
help businesses recover after their operations were affected by the influenza outbreak in the country and the
measures the government took to control it. The recovery funds will be provided through commercial and
development banks. MXN 5 billion will be destined to micro, small and medium sized enterprises, MXN 1 billion to the
pork production sector, MXN 3 billion to the poultry sector, MXN 2 billion in warranties and MXN 4 billion for the
restructuring of debts with the government–run development bank Nacional Financiera (NAFIN). In addition, Health
Minister Jose Angel Cordova Villalobos said Mexico will request an indemnity from the World Health Organization (WHO) for impacts that influenza had on the country’s economy. Villalobos said a compensatory fund at the WHO
had been established since the SARS virus affected China but no country had ever requested it.
President Calderon Mulls Substituting IETU Tax For VAT On Foods, Medicines
May 13, 2009
President Calderon welcomed a proposal by businessmen from the state of Coahuila that suggested the flat
corporate tax IETU on foods and medicines could be replaced by the VAT tax on the same goods. President
Calderon mulled over the proposal and said an eventual passage will depend on the structure of the Lower House of
Congress during the next legislature, for which elections will be held in July.
Lala Inaugurates USD 100 Million Plant In Torreon, Purchases National Dairy
May 13, 2009
Mexican dairy producer Grupo Industrial Lala has inaugurated a USD 100 million facility in Torreon, in the state of
Coahuila, which is expected to create about 600 direct jobs in the region. The plant will mainly produce different types
of cheese. Earlier this month Lala announced it acquired the 87.5% shares it did not already own in Dairy Farmers of
America's company store, the National Dairy, for an undisclosed amount.
Bimbo Is World’s 17th Most Admired Company
May 13, 2009
According to a ranking by U.S. private advisory and research firm the Reputation Institute, Mexican bread maker
Grupo Bimbo is the 17th most admired, best reputed firm in the world, amongst another 200 companies. The ranking
was performed based on a survey of 73,000 people in 32 countries, considering trust and admiration criteria for the
companies that were taken into consideration for the study. Other Mexican firms featured in the ranking were brewers
FEMSA and Grupo Modelo, in the 58th and 100th places, respectively. Cemex ranked 108 and flour producer Maseca
153rd.
Coca–Cola To Export Jugos Del Valle To Spain
May 13, 2009
U.S. soft drink maker Coca–Cola and Mexican partner Fomento Economico Mexicano (FEMSA), which jointly
acquired Mexican fruit juice maker Jugos del Valle in 2008 for USD 370 million, announced they will export fruit juice
to Spain in order to compete against the other Coca–Cola’s fruit juice brand Minute Maid and against other rivals.
Jugos del Valle will initially be sold in Madrid and its distribution elsewhere across the country will depend on test
market results.
Vitro Renegotiates Debt, Fails To Secure Loan From Bancomext
May 12, 2009
Mexican debt–ridden glassmaker Vitro said that it is seeking to restructure its debt and reach agreements with
creditors, some of whom have already begun legal proceedings against the firm. Meanwhile, state–run development
bank Bancomext has denied a USD 150 million loan to the company. Vitro's debt amounts to USD 1.6 billion and its
1Q sales and cash flow fell 34.5% and 50%, respectively. Losses totaled USD 84 million during that period.
Sony To Close Factory In Mexico
May 14, 2009
Japanese electronics manufacturer Sony announced that it will close its LCD flat–screen TV’s producing facility in
Mexicali, in the state of Baja California, before the end of September. The decision will affect 600 workers and comes
as the firm follows its cost–cutting, debt restructuring and loss–reduction program. Some of the employees might be
relocated to the Tijuana facility, in the same state, but Sony did not provide further information. Sony will also close
down plants in Japan and Indonesia.
Arca Invests USD 17 Million In Snacks Business
May 15, 2009
Mexican Coca–Cola bottler Embotelladoras Arca announced it invested USD 17 million to build a facility for its
Bokados snack business, which will increase its snack producing capacity to 19,000 tons a year. Arca seeks to
reinforce its presence in the snacks market and become a strategic player, competing with rivals such as Grupo
Bimbo. The new facility’s production will supply the states of Sonora, Sinaloa, Baja California, Chihuahua as well as
California, in the U.S.
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Automotive
AMIA: April Auto Output, Exports, Domestic Sales Fall
May 12, 2009
According to the Mexican Automotive Industry Association (AMIA), Mexico's automobile production fell 46.6% to
100,421 vehicles in April from the same month a year earlier as slumping U.S. demand hit the industry. AMIA also
said vehicle exports dropped 41% to 85,121 units in the month compared to April 2008. Meanwhile, domestic sales
were down 38% from the year–ago month to 51,394 units, a figure not seen since 1999. Heavy vehicles’
manufacturers also reported a 46.9% reduction in production in April when compared to the like–2008 period and a
67.4% drop in sales.
Nicaragua Sets USD 26.7 Million Tender To Purchase Mexican Buses
May 15, 2009
Nicaragua announced it will launch a USD 26.7 million public tender to purchase 350 buses but noted that only
private firms from the Mexican automotive industry are allowed to participate. The tender is financed by the Central
American Economic Integration Bank (BCIE), with funds provided by the Mexican government, which acts as an
extra–regional partner. BCIE was founded in 1960 by Guatemala, Honduras, Costa Rica, El Salvador and Nicaragua.
Extra–regional partners also include Spain Argentina, Colombia, Taiwan, Panama and the Dominican Republic.
Fiat–Chrysler Eyes Mexico To Assemble Cars
May 10, 2009
Italian automaker and U.S. partner Chrysler are eyeing Mexico as a possible option to install their car assembly
operations. Executives at Fiat Mexico said that nothing has been decided yet but that they have considered Mexico
as it offers advantages such as its labor force, a broad supply chain for automakers and an important number of free
trade agreements. The executives said that other options in North America are the U.S. and Canada. Fiat started
operating in Mexico in 2006.
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Construction & Infrastructure
CFC To Wrap Up Key Probes This Year
May 15, 2009
The Federal Competition Commission (CFC) said it expects to finish investigations into possible price–fixing activities
in the construction materials industry by the end of the year. The probe began in mid–2006, and the antitrust agency
recently notified the companies of its preliminary findings. The CFC can levy a fine of up to MXN 70 million against a
company found guilty of price fixing. The companies are preparing their defense against CFC’s potential ruling finding
them guilty of colluding to fix prices.
ICA, PYSCA Face Trouble In Panama
May 12, 2009
The Panamanian subsidiaries of Mexican engineering and construction firms Ingenieros Civiles Asociados (ICA) and
PYCSA are experiencing problems in Panama as popular demand requests they be nationalized in reaction to the
firms increase of toll road tariffs. ICA and PYCSA built and operate the two main roads accessing Panama City. The
government has announced an upcoming audit to verify that the prices companies have set abide by contractual
agreements.
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Retail
ANTAD: Same–Store Sales Up 5.4% On Year
May 13, 2009
Mexican retailers association ANTAD said that comparable sales at member stores rose 5.4% in April from the year–
ago month as the Easter holiday fueled spending. ANTAD said total sales in April rose 13% from April 2008, to MXN
66.1 billion. The shift in the Easter holiday this year to April from March contributed to the year–on–year sales growth,
and compensated for the negative effect in March. ANTAD said supermarket same–store sales rose 7.6% from April
2008, led by groceries. Comparable department store sales rose 2.5%, with a 6% rise in clothing and footwear, while
other retailers' comparable sales fell 0.2%.
Grupo Gigante: Investments For 2009 To Total MXN 1.4 Billion
May 13, 2009
Mexican retailer Grupo Gigante said that its 2009 investment will total MXN 1.4 billion and will be destined mostly to
its housing business and its territorial reserves, where it plans to build malls, offices buildings, restaurants and houses
through its new division. Grupo Gigante said that investment for its housing plans will be approximately MXN 750 million. Further details were not provided.
Famsa Cuts Investment Plans By As Much As 60%; Will Recycle Stores
May 14, 2009
Mexican retailer Famsa announced it has cut its investment plans for 2009 by approximately 60% when compared to
2008, or between MXN 250 million and MXN 300 million, as it seeks to optimize its productivity amid a slowing
economy. In addition, Famsa said it will close 10 stores, but will open another eight, five in Mexico and three in the
U.S.
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Transportation
FEMIA: Aircraft Manufacturers To Increase Investments In Mexico
May 15, 2009
According to the Mexican Airspace Industry Federation (FEMIA), the country is receiving increased foreign
investment in the airspace sector and is expected to grow 18% this year. FEMIA said that in 2008 Mexico's aircrafts
and aircrafts parts exports totaled USD 3.4 billion and that sales this year are estimated at USD 4 billion. Meanwhile,
Cessna Aircraft and Bell Helicopter announced they will invest USD 106 million in new assembling facilities in the
state of Chihuahua. Investment is expected to create 895 jobs.
Interjet Demands Government Support; Considers Mergers
May 15, 2009
Mexican low cost airline Interjet has requested government help to avoid the bankruptcy of airlines that have been
affected by the worldwide economic crisis but also due to the impact of the influenza outbreak. Interjet proposed that
the government create a financing program for jetfuel purchases and the cancellation of aerial navigation rights fees
for the remaining of the year, amongst other measures. In addition, Interjet said it seems logical and natural that it
could merge with peer Volaris but that nothing is certain and concise at the moment.
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Telecommunications & Technology
Televisa’s Cablevision, Cablemas And Rival Megacable Enter Triple–Play Venture
May 11, 2009
Mexican broadcaster Televisa’s Cablevision and Cablemas cable units have allied with rival Cablemas to offer a
blanket USD 38–per–month triple play package aimed at low–income earners. The firms joined to launch the new
service under the "YOO" banner in a move to strengthen their presence in three key markets: Mexico City,
Guadalajara and Monterrey. The websites of all three companies featured the new YOO package prominently on their
front pages. The teaming of the three could also mean a direct aim at Telefonos de Mexico which is already offering
billing services for Dish Mexico, the direct–to–home programming venture between Mexican media company MVS
Comunicaciones and set–top–box provider EchoStar.
SCJN Denies Court Protection To Radiomovil Dipsa—Telcel
May 12 , 2009
The Supreme Court (SCJN) denied court protection to mobile telephony operator Radiomovil Dipsa after the latter
sought the said protection in order to avoid paying annual rights for the use of radio–electric spectrum. The company
considered the request to pay the rights was unconstitutional due to certain articles regarding the spectrum could
have been interpreted as exempting the firm from contributing their due, but the SCJN said that under Radiomovil
Dipsa's contract, it must pay a reduced price for the rights.
Operators: Mexico's Wireless Subscribers Reach 79.4 Million At End Of March
May 13, 2009
According to data from Mexico’s four mobile operators, the country’s wireless subscribers rose 11.8% year on year to
79.4 million at the end of March. Market leader Telcel said that its subscriber base grew 11.6% to 57.53 million, while
its market share was unchanged at 72.5%. Movistar grew its client base 17% to 15.52 million at the end of March; the
company's market share rose to 19.5% from 18.7%. Grupo Iusacell saw its subscriber base shrink nearly 10.7% to
3.54 million after the company disconnected prepaid subscribers who weren't using their phones during 4Q. Iusacell's
market share slipped to 4.5% from 5.6% a year earlier. Nextel Mexico grew 24.1% to 2.82 million clients. Prepaid
subscribers represented 88.4% of total wireless subscribers at the end of March, and the more lucrative postpaid
clients 11.6%.
Axtel To Enter Mobile Telephony Market With WiMax Technology
May 12, 2009
Mexican telco Axtel announced that its WiMax technology, used in mobile telephony services, is nearly ready and that
it will soon be entering that market to compete against rival Telcel. Axtel, which already offers fixed–line telephony,
also seeks to compete with market leader Telmex by offering combined mobile and fixed phones packages. The
WiMax technology would give Axtel an advantage over competitors that employ other data–transferring platforms.
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Media & Entertainment
TV Azteca Accused Of Violation Concession; Could Be Sanctioned
May 15, 2009
The Federal Telecommunications Commission (Cofetel) said that local broadcaster TV Azteca could face sanctions
for offering digital television channels without authorization. Cofetel said it has recommended that the
Communications and Transport Ministry (SCT) initiate proceedings against TV Azteca for possibly violating terms of
its broadcast concession by offering the Hi–TV services, for which it lacks authorization. Hi TV, currently operating in
the Mexico City metropolitan area, offers more than 20 broadcast digital channels via a receiver that costs about USD
150, and no monthly payments. TV Azteca defended the system saying its operation is legal and that it plans to
continue selling the receiver boxes.
Mexican Pay TV Market Adjusts Prices As Competition Increases
May 15, 2009
According to analysts, Mexico’s pay TV market has seen adjustments in costs and prices as operators have been
compelled to offer more attractive packages and reduce tariffs to better compete. Competition has increased as
alliances have formed and after satellite television provider Dish Mexico recently launched its service in Mexico City
and the surrounding urban area.
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Farming & Agriculture
Mexico Withdraws From Food Fair In China After Discriminatory Treatment
May 11, 2009
The Mexican government has suspended its participation in Shanghai’s Food Fair in China in retaliation for the
discriminatory treatment authorities from that State gave Mexican nationals in fear of the influenza virus. Mexico was
an “invited country” at the fair and Mexican pork producers were going to serve samples of Mexican pork meat.
Mexico added it also suspended its participation as it had no guarantees that Mexican exporters and representatives
would be given decent treatment and in view of China’s suspension of pork imports from Mexico.
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Hospitality & Tourism
Mexico Urges Tourists Not To Fear Influenza; Outbreak Is Controlled
May 13, 2009
Tourism officials have tried to reassure tourists and said that the Health Ministry (SSA) stated that the influenza
outbreak is under control. In addition, the officials said that several of Mexico’s best–known tourism spots are free of
the virus, as they scrambled to limit the damage to the all–important travel industry due to the outbreak. SSA said five
top beach areas Puerto Vallarta, Los Cabos, Mazatlan, Zihuatanejo and Cozumel) have not registered any confirmed
cases of the AH1N1 virus. About half the flu cases have occurred in Mexico City, but the virus has been confirmed in
all but two of Mexico's 31 states.
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Economy
Banxico Cuts Rate 75 BPS To 5.25%
May 15, 2009
The central bank (Banxico) warned that the country’s economic activity might continue contracting in upcoming months and announced a rate cut of 75 basis points (BPS) to 5.25%. Banxico said that the worsening economic
situation is due to the influenza outbreak and the consequences left by it in the country. Banxico said the most
affected sectors are tourism and air travel, adding that it expects activity in those sectors to recover in between three
and four months.
STPS, INEGI Provide Figures On Unemployment, It Continues To Rise
May 12, 2009
The Labor Ministry (STPS) reported that Mexico had less than 14 million formal jobs, down 500,000 from the same
month last year, with a fall of 3.46%. Permanent jobs had the largest numerical drop, falling 457,000 from a year
earlier, or 3.59%, to reach just over 12 million. Short–term rural jobs had the largest percentage fall of 10.73%,
representing a decrease of 15,606 posts. Short–term jobs in cities were the least hit by the crisis, losing only 1.73%,
or 27,132 jobs during the year. However, the Labor Ministry only publishes data about jobs registered in the state–run
Mexican Social Security Institute (IMSS). The National Statistics Institute (INEGI) reported that unemployment grew
5.1% during 1Q when compared to last year’s results and said that 405,000 jobs were lost during that period.
Standard And Poors Warns Mexico Of Falling Tax Earnings, Trade Drop
May 12, 2009
According to ratings agency Standard and Poors, Mexico may face rising debt in the future as the country's tax
income falls and its exports drop. The agency said it projects that Mexico's fiscal position will deteriorate this year and
the next, along with those of many other countries. It added that the deterioration in Mexico's public finances
heightens underlying structural fiscal vulnerabilities, such as a budgetary dependence on oil revenue. Even so, the
agency did not cut its ratings on the nation, which at ‘BBB+’ are three notches away from junk grade and would keep
most investors from buying the country's debt.
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Border & Migration
Immigration Of Mexicans To U.S. Plummets
May 15, 2009
Census data from Mexico indicated an extraordinary decline in the number of Mexican immigrants going to the U.S.
The recently released figures show that about 226,000 fewer people emigrated from Mexico to other countries during
the year that ended in August 2008 than during the previous year, a decline of 25%. All but a very small fraction of
emigration, both legal and illegal, from Mexico is to the U.S. Mexican and American researchers say that the current
decline, which has also been manifested in a decrease in arrests along the border, is largely a result of Mexicans'
deciding to delay illegal crossings because of the lack of jobs in the ailing U.S. economy.
U.S. Research: Insured Immigrants Spend Less On Health
May 14, 2009
U.S. researchers have found that insured immigrants have lower medical expenses than U.S.–born citizens, even
after accounting for lower levels of insurance coverage. They said the findings contradict the popular belief that
immigrants are a drain on the U.S. health system. Researchers studied data on adults aged between 19 and 64 from
the 2003 Medical Expenditure Panel Survey, a survey of health expenditures, and found that about 44% of recent
immigrants and 63% of established immigrants were fully insured.
Schwarzenegger Proposes Deporting 19,000 Undocumented Aliens Held In Prisons
May 14, 2009
California Governor Arnold Schwarzenegger has proposed to hand over as many as 19,000 undocumented aliens
held in state prisons to immigration authorities for deportation. The announcement comes as Schwarzenegger plans
to free 38,000 inmates of whom 19,000 were in the U.S. illegally.
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Politics
Political Debates Strengthen Amid Influenza Crisis And Upcoming Elections
May 10, 2009
President Calderon said that his administration has protected the people of Mexico and the world by acting with
speed and certainty against the influenza virus outbreak. The announcement came at a time when decisive mid–term
congressional elections, were approaching. Meanwhile, Calderon’s main rival during the 2006 presidential elections
Andres Manuel Lopez Obrador, went on radio to accuse the government of bungling the health crisis due to a “virus
of ineptitude.” He claimed the administration lacked a coherent strategy and stirred fear when health officials announced a confirmed death toll of 20 at the outset and, soon after, the possibility that more than 100 people had
died from the flu.
Fidel Castro: Calderon Delayed Warning Of Influenza Due To Obama Visit
May 12, 2009
Former Cuban President Fidel Castro accused President Calderon of deliberately delaying the international public
announcement of the Influenza virus outbreak in Mexico as U.S. President Barack Obama was set to visit the country
during that time. Castro showed indignation as Mexico mulled suspending a visit from Calderon to the Caribbean
country. Castro complained about President Calderon’s attitude and justified his country’s actions of prevention
against the presence of the virus in Cuban territory.
Former President Miguel De La Madrid Uncovers Corruption From Successors
May 20, 2009
Former president Miguel de la Madrid Hurtado uncovered several governmental irregularities during his administration
and during his successors’ Carlos Salinas de Gortari’s term. De la Madrid accepted the fact that he did not act against
former oil union leader Joaquin Hernandez Galicia a.k.a. La Quina’s weapon import activities and said he warned
Salinas of the operations. The weapons were bought for an alleged planned armed confrontation with the
government. De la Madrid also said, amongst other dire accusations, that Salinas misappropriated half of the funds in
the country’s “secret reserves” or “secret accounts.”. The Public Function Ministry (SFP) has started analyzing
whether it has, according to Mexican Law, the ability to start investigations against Salinas and possibly sanction
proven illegal deeds.
Peru, Ecuador, Switzerland Lift Ban On Mexico Flights
May 13, 2009
Peru, Ecuador and Switzerland joined the list of countries that lifted their bans or travel warnings on airline flights to
and from Mexico as a measure of prevention against the proliferation of contagions from the influenza virus. In
addition to these actions, the Cuban government allowed Mexican students in Cuba infected by the influenza virus to
be visited by consulate officials. Nevertheless, the Argentinean government extended the ban on flights although air
travel between Mexico and Argentina has resumed, and the decision continued to affect the already damaged
bilateral diplomatic relations.
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Justice, Safety & Crime
U.S. Senate Committee Approves USD 66 Million In Military Aid For Mexico
May 13, 2009
A U.S. Senate Committee has approved a USD 66 million proposal as part of the U.S. 2009 supplementary military
expenses budget. The funds were requested by President Barack Obama for the purchase of three Black Hawk
helicopters to be used by Mexico’s Federal Public Security Ministry (SSPF). Sources close to U.S. legislators said
that further aid for this purpose is not being considered. U.S. aid for Mexico’s aircrafts–needs now includes four Black
Hawk helicopters, three Huey Bell helicopters and four EADS–CASA airplanes.
Mexico Captures Alleged Sinaloa Cartel Lieutenant
May 16, 2009
The Federal Public Security Ministry (SSPF) announced that police officers arrested a presumed top lieutenant of the
powerful Sinaloa cartel and four other suspects. SSPF said police captured Mario Gonzalez Martinez, considered a
close aide to presumed Sinaloa kingpin Joaquin “El Chapo” (Shorty) Guzman and the individual responsible for
overseeing the cartel's operations in the Los Altos area of the western state of Jalisco. Together with the 33–year–old
Gonzalez, also arrested were Raudel Castro, Jose Maciel, Yasir Lara and Francisco Amezcua, who were discovered
by officers at a home in the western town of Teocaltiche.
Gunmen Spring 53 Inmates From Prison In Zacatecas
May 17, 2009
A group of 20 gunmen wearing federal police uniforms helped 53 inmates escape from a prison in the state of
Zacatecas. The inmates who escaped from the Cineguillas penitentiary, located some 30 kilometers (18 miles) from
Zacatecas city, the state capital, all belonged to the Gulf drug cartel. Authorities arrested 40 prison guards and the
warden on suspicion that they assisted in the escape attempt, which took just five minutes and not even one shot,
depending on sources. The government is broadcasting a video of the escape; it is also offering MXN 53 million for
the capture of the inmates, 11 of whom are said to be highly dangerous. Interpol has issued an international alert and
the governments of certain states have made statements and revealed actions on the matter.
Army Seizes Nearly Eight Tons Of Crystal Methamphetamine
May 13, 2009
The army announced the seizure of over eight tons of crystal methamphetamine at a clandestine drug lab in the
western state of Michoacan. The seizure comes just weeks after soldiers seized about 8.5 tons of the synthetic drug
in another raid in a nearby town. The meth seizures are amongst the biggest in recent memory, and indicate
traffickers have found a way around restrictions on precursor chemicals implemented by the Mexican government.
Soldiers found the drugs in a raid on an apparently abandoned building near the town of Ziracuaretiro.
Four U.S. Citizens Slain In Baja California
May 14, 2009
The bodies of four U.S. citizens were found strangled, beaten and stabbed in a van in the city of Tijuana, in the state
of Baja California, two days after they reportedly left their Southern California homes for a night at Mexican clubs. The
victims, ages between 19 and 23 years old, were found tied up but their deaths were not reported earlier because
they were under investigation. U.S. consular officials in Tijuana said the victims, two men and two women from the
San Diego and Chula Vista areas, were U.S. citizens. The state attorney general's office in Baja California said one of
the women was Mexican. Relatives of one of the victims told authorities they knew drug traffickers, and that one of
the women had cocaine in her system.
Authorities Report Drug Related Murders In Several States
May 9, 2009
Authorities reported drug related murders in several states. Gunmen killed nine people in three separate attacks in
the state of Michoacan, as well as three horses and a bull. Gunmen also killed eight people—including a senior police
officer—in the southern state of Tabasco. Meanwhile, five dead bodies, two of them decapitated, were found in the
border state of Chihuahua, one of the areas of Mexico hardest hit by drug–related violence.
SEDENA Detains 12 Soldiers Related To The Slaying Of Three Men
May 11, 2009
The National Defense Ministry (SEDENA) announced it has detained 12 soldiers suspected in the slayings of three
men from the northern border city of Nuevo Laredo, in the state of Tamaulipas. Miguel Gama, Israel Ayala and Aron
Rojas were arrested in March by a group of soldiers and were never heard from again. SEDENA did not say why the
men had been arrested. Police found their bodies April 28 in a clandestine grave in the town of Vallecillo, 110 miles
(180 kilometers) south of Nuevo Laredo. They had been shot in the head and their bodies set ablaze. Further details
were not provided.
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Health & Science
SSA: Influenza Epidemic Has Reached Final Stage
May 15, 2009
The Health Ministry (SSA) said that the AH1N1 influenza outbreak is under control and that the epidemic is now in its
final stage. SSA said the number of those infected has been falling but added that preventative measures must still be
taken to prevent a resurgence of the virus.
U.S. Health Authorities Reduce Warning For Travel To Mexico
May 15, 2009
U.S. health authorities have lessened restrictions and have reduced warnings for travel to Mexico. They also reported
that U.S. cases have surpassed those of Mexico and said that some 100,000 U.S. citizens might be infected.
Meanwhile, although the influenza virus outbreak has affected Mexico's relations with China and other countries that
have canceled airline flights and halted some trade, Mexico has seen the U.S. and Canada reaction as loyal. Neither
the U.S. nor Canada banned flights or restricted trade with Mexico. President Barack Obama forcefully rejected the
idea of closing the border, despite arguments from conservative talk show hosts that the flu virus proved immigration
from Mexico was a threat.
Influenza Exposes Flaws In Mexico's Health Care System
May 9, 2009
According to analysts, the influenza virus outbreak has exposed the weaknesses and somehow deficient public health
care system of the country, leading to a dramatic initial increase of AH1N1 cases in the early stages of the known
outbreak. Some Mexicans tried to avoid public hospitals’ emergency rooms and headed instead to the clerk at the
corner pharmacy for advice on coping with a cold or flu. The initial delays complicated treatment, possibly explaining
why human influenza–linked deaths occurred mostly in Mexico, and why the disease couldn’t be controlled earlier.
Nevertheless, regardless of the Influenza outbreak, there are obvious deficiencies in the country’s public healthcare
system.
Researchers: Mexican Genomes Show Wide Diversity
May 11, 2009
According to new research, the detailed newest look at the genetics of Mexicans is showing significant diversity, a
finding that could help point the way to customized drugs and identification of people prone to certain diseases.
Researchers led by Dr. Gerardo Jimenez–Sanchez studied the genes of 300 mestizos, people of mixed Indian and
European background, from six states in Mexico, and one Indian population. They found significant differences
between the mestizos and such groups as Europeans, Africans and Asians. A more detailed gene mapping could
help doctors determine an individual's risk of developing certain diseases as well as help them find treatments that
will work better for one person or another. With these discoveries, Mexico became the first country to be classified as
an emerging economy to decompose the genomic profile of a section of its population, an important step towards
predictive medicine.
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Other
Sinkhole Swallows Construction Workers In Mexico City
May 14, 2009
Local media reported that heavy rain and a leaky water pipe combined to create a large sinkhole in Mexico City that
swallowed several construction workers who were nearby, but no one was injured. The sinkhole, which had a
diameter of 15 meters (49 feet) and is 10 meters (33 feet) deep, formed in the middle of a street in southern Mexico
City. A local television network broadcast images of the sinkhole, showing several men who had ended up in the giant
hole. The city’s emergency management office cordoned off the area around the sinkhole to keep vehicles and
pedestrians from falling in.
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