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Energy
Italy's Saipem Wins US$345 Million Desulfurization Contract From Pemex
February 8, 2010
Mexico's state oil company Pemex has awarded Italy's Saipem the EPC contract for gasoline desulfurization plants at
two of its refineries (Tula and Salamanca). Saipem's offer beat out competing bids from South Korea's Samsung for
US$357 million and U.S.-Mexican joint venture ICA-Fluor for US$369 million. The projects aim to reduce the sulfur
content in gasoline.
CFE Awards Contract For Thermoelectric Revamping At Manzanillo
February 12, 2010
The state-run Federal Electricity Commission (CFE) announced that a consortium formed by Spain's ACS and Cobra
along with Venezuelan Inelectra has won a bid to upgrade production at the thermoelectric plant in the state of
Colima. The winning bid of the international tender offered a price of 7.925 US¢ per kilowatt-hour and an investment
of US$981.3 million. The project will use General Electric turbines.
Pemex To Enhance Production At Cantarell Through Alliances With Universities
February 12, 2010
The Mexican Oil Institute (IMP) and Pemex have established programs with U.S. universities Stanford, Texas at
Austin, and Colorado in order to develop and explore alternatives that will help boost production at the declining
Cantarell oil field, which once accounted for more than 60% of national production.
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Mining
Grupo Mexico Predicts Growth In Copper And Other Metals
February 8, 2010
Grupo Mexico forecast that its Mining Division (which now includes U.S. copper miner Asarco) is expected to produce
720,000 tons of copper this year without including any production from Mexico's Cananea copper mine, which
remains closed because of a lengthy labor dispute. Copper production for 2009 was 496,022 metric tons, a 1.5%
increase over 2008 production. The company reported a 14% increase in molybdenum production last year, for a total
of 18,687 metric tons. Zinc production increased 3.3% in 2009 to 110,430 tons. Last year's silver production
increased 8.2% to 13.3 million ounces, while gold production was reported at 15,088 ounces, a slight increase over
2008.
Endeavour Silver Acquires Option To Purchase San Sebastian Silver-Gold
February 9, 2010
Endeavour Silver Corp. announced that it has acquired an option to purchase the San Sebastian silver-gold
properties in the state of Jalisco, Mexico, from IMMSA (Grupo Mexico), one of the largest mining companies in
Mexico. The San Sebastian properties being acquired by Endeavour surround the high-grade, underground silvergold
mine Santa Quiteria (75 tonnes per day) and represent a new, district-scale silver-gold exploration opportunity
for the company.
Court Rules In Favor Of Dissolving Cananea Labor Contract
February 12, 2010
A Mexican court has ruled in favor of dissolving the labor contract between workers at the Cananea copper mine and
Grupo México, officially ending the more than 2½-year strike. According to Grupo México, the company has offered
the opportunity for voluntary liquidation, with better severance packages than what the law requires, but workers have
not accepted. In April 2009 Mexico's labor authority JFCA ruled that Grupo México was legally allowed to fire all of
Cananea's unionized workers and end all negotiations on grounds the workers caused significant damage to the
mine's equipment. The union appealed the decision, but has now lost the appeal. Before the court reached a
decision, the nearly 1,200 workers on strike said they would not accept the decision and would not leave the mine.
Grupo México has missed out on around US$1.5 billion in sales during the strike.
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Trade & Investment
Mexico's Export Factories To Recover From Crisis By Next Year
February 9, 2010
Mexican export-assembly factories expect production to recover next year to levels achieved before the global
financial crisis, according to the Mexican National Maquiladora Association. The recovery is driven not by increased
demands for production by existing companies but also by the influx of new investment. Mexico's US$1.09 trillion
economy was the worst performer in Latin America last year, shrinking 10.1% in the second quarter and 6.2% in the
third quarter from a year earlier. Gross domestic product may expand 3.9% this year as the region's second-largest
economy benefits from an economic rebound in the U.S., its largest trading partner, according to the government
estimates.
Mexico Trusts Resolution To Trucking Dispute Is Near
February 8, 2010
Mexican Economy Secretary Gerardo Ruiz Mateos said that the United States and Mexico would resolve a trade
dispute over cross-border trucking by the end of the year. Ruiz Mateos made the comments at a joint press
conference in Mexico City with U.S. Trade Representative Ron Kirk and also said that the Obama Administration has
taken the first step toward renewing a pilot program that allows Mexican truckers to operate within the U.S., as
stipulated in the North American Free Trade Agreement, but the Administration still must work with Congress on
fashioning a new program. Trucking groups in the U.S. have said the Mexican trucks aren't safe. Mexico says the
vehicles are regularly inspected at the border, and that the violation of NAFTA amounts to U.S. protectionism.
Mexico And U.S. Agree To Enhance NAFTA Region Competitiveness
February 10, 2010
Mexican Secretary of Economy Gerardo Ruiz Mateos and United States Trade Representative Ron Kirk agreed to
seek to enhance competitiveness of the North American region by reducing regulation, providing greater access and
support to small and medium-sized enterprises, and boosting border and customs operations. During a press
conference the American officer emphasized that the business relationship with Mexico is most important for the U.S.,
and stated that there is a commitment on the part of President Barack Obama's administration to resolve existing
conflicts, such as in trucking and tuna, among others.
WB Invests In Mexican Nasoft
February 11, 2010
The International Finance Corporation (IFC), the private investment arm of the World Bank Group (WB), will invest
US$8 million in North American Software (Nasoft), a Mexican IT company. Nasoft said that with this contribution IFC
will join the company as a partner, with an 18% participation of total shares, and IFC's resources will help finance its
short and medium projects’ deadlines as well as support its expansion of enterprise IT services to public and private
companies in Mexico and Central and Latin America.
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Banking, Insurance & Finance
Five Sofomes Could Become Niche Banks In 2010
February 9, 2010
According to the Association of Multiple Purpose Finance Companies (Asofom), five of the entities (Sofomes) could
become niche banks by the end of this year, after new laws were passed at the end of 2009 regarding the creation of
such banks. Asofom estimates that at least 25 of its 132 members are analyzing converting into niche banks. With
this new option for Sofomes, 2010 could also see a number of mergers and sales. The Association hopes to grow this
year to 300 from its current 132 members, and for its affiliates to lend Mex$90 billion, up from Mex$30 billion in 2009.
Asofom is seeking to sign strategic alliances with insurance and surety companies, help foreign investors place loans
in the tourism and other sectors, and help securitize its members' loan portfolios.
Santander Mexico Sees Lending Up As Much As 19%
February 11, 2010
The Mexican unit of Spanish bank Santander could increase its credit book by nearly 20% this year as the economy
recovers. On February 9, Mexico's CNBV securities regulator predicted that the lending book of the nation's banks
would increase between 8% and 12% this year.
Mexico's Grupo Financiero Inbursa Plans To Add 60 New Branches
February 8, 2010
Mexico's Grupo Financiero Inbursa is planning to add 60 new branches during this year's first quarter in order to
attract more small-business and consumer clients. The bank, which billionaire Carlos Slim controls, more than
doubled the number of its offices last year to 198, which could increase deposits by Mex$20 billion (US$1.5 billion).
Forty of the new branches will be located in Sanborns retail stores. The bank ended last year with a net loan portfolio
totaling Mex$143 billion, 9% higher than the year before. Inbursa also may purchase pension or banking assets from
other financial firms during 2010.
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Business & Industry
Industrial Production Grows After 19 Months Of Declines
February 11, 2010
During December, industrial production in Mexico showed an increase of 1.6% annual rate, well above analysts'
expectations, which had been set at a marginal rise of 0.19%. This expansion of industrial activity in Mexico is the first
in 19 months after the debacle suffered by the industry over the past year and the effect of U.S. recession, which
resulted in drops of up to 12.4% during April 2009. The rise was driven primarily by the manufacturing industry, which
registered a 4.3% growth, along with positive performance in the electric power, gas, and water supply sectors, which
grew by 2.4%. The mining industry achieved a 1.3% growth following six months of slow and steady recuperation,
which contrasts with a 4.5% decline in the oil and gas extraction sector, which has reached 13 months of declines.
The construction sector experienced a 5.6% contraction rate after 17 consecutive months of falls.
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Automotive
Mexican Development Banks Finance Production Of New Fiat Model
February 9, 2010
A Chrysler plant outside Mexico City will begin assembling the Fiat 500 by December, for sale in Mexico, the U.S.,
and Latin America, with a US$550 million investment. The initiative, which could produce up to 130,000 units
annually, is seen as key to the recovery of Chrysler in the United States. The Foreign Trade National Bank
(Bancomext) and National Financiering (Nafinsa) signed an agreement to jointly structure financing for up to US$400
million to support the project. The loan was a vital factor in order to attract the investment to Mexico as opposed to
Brazil, Canada, or the U.S., where the company has manufacturing plants as well.
Car Exports Climb 123.6% In January
February 8, 2010
According to data released by the Mexican Automotive Industry Association (AMIA), Mexico's car production rose by
102.4% and exports soared 123.6% in January, year-on-year, following a 56.9% decline suffered in January 2009
when compared to the same month in 2008. During January, Mexico produced 165,058 vehicles, of which 114,193
units were exported.
Nissan Will Produce 100,000 New Compact Models In 2011
February 8, 2010
Japanese automobile company Nissan will manufacture a new compact car model in Mexico in order to supply the
Latin American market during 2011. The car company will produce up to 100,000 of the new cars annually in its
Aguascalientes plant, seeking to reach sales of 1 million units by 2013. Nissan's main objective is to increase the
production of the two manufacturing plants located in Mexico in order to reach a production of 500,000 units, up from
last year's 350,000 vehicles. The new car, a lower-priced version of the Nissan March (Micra), will begin production
during this year in Thailand, India, and China.
Honda Recalls 9,227 Vehicles In Mexico
February 10, 2010
Japanese automotive company Honda has recalled 9,227 vehicles for inspection, as part of a 437,700-vehicle recall,
based on possible failures in air bag systems. Toyota's main competitor will review 380,000 vehicles in the United
States, 41,700 in Canada, 4,050 in Japan, and fewer numbers in other markets. The review focuses on models
manufactured in 2001 and 2002. According to information provided by Honda, the problem stems from the vehicles'
air bag inflators on the passenger side, which can place too great a force on the air bag when put into use, fracturing
the inflator and causing metal shards, which have resulted in injury.
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Housing, Real Estate & Mortgaging
Infonavit To Issue Up To US$434 Million In RMBS On March 10
February 9, 2010
Mexico's largest mortgage lender, state-owned Infonavit, will issue up to Mex$5.7 billion (US$434 million) in Cedevis,
its residential mortgage-backed securities (RMBS) product, on March 10, according to Deputy Director Joaquín
Escamilla. The total amount approved by the lender's assembly for Cedevis issues in 2010 is Mex$10 billion—
Mex$15 billion, likely through four to five issues. Last year Infonavit issued Mex$11.3 billion in Cedevis through five
placements. Infonavit hopes to issue 475,000 to 525,000 mortgage loans this year, after undershooting its goal for
2009 of 500,000 and ending the year with 450,000 loans.
Fovissste Will Provide More Credit This Year
February 10, 2010
The Government Workers Housing Fund (Fovissste) sold Mex$2.49 billion (US$191 million) in residential mortgagebacked
securities (RMBS), or "bonHiTos," through securitizing company Hipotecaria Total (HiTo). The issue, rated
AAA by Fitch and Standard & Poor's, is the second part of a placement by HiTo of Fovissste RMBS in November,
with the accumulated total hitting Mex$5.52 billion, backed by 26,172 mortgages, making it the largest single RMBS
issue ever in Mexico, HiTo said. Resources generated by Fovissste's portfolio sale will allow it to extend mortgage
loans to 100,000 bureaucrats, a figure slightly higher than the number of credits granted last year.
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Construction & Infrastructure
Grupo Carso Buys 20% Of Polarea's Land
February 8, 2010
Spanish construction company Grupo LAR announced the sale of 20% of the land of their "Polarea" project, their
largest in Mexico, to Carlos Slim's Grupo Carso. The sale of 15,222 square meters, for an undisclosed amount, will
allow for expansion of Grupo Carso's bordering project, which will hold corporate offices for several of Mr. Slim's
companies, including America Movil, Telmex, and the financial group Ibursa. Grupo LAR said it will develop the rest of
the grounds, some 500,000 square meters in Mexico City, to build a complex with 280,000 square meters of housing
and 160,000 square meters of office space.
Federal District's Hydraulic Infrastructure Requires US$61 Million
February 10, 2010
According to Mexico's Federal District (DF) mayor, Marcelo Ebrard, hydraulic infrastructure in the DF requires an
investment of over Mex$800 million (US$61.3 million) in order to prevent a repeat of the severe flooding that has
affected the city over the past few days. The DF government has already asked the Lower House for the extra
funding, which would be used to expand reservoirs, build new tunnels, and reinforce the capacity of a wastewater
pumping station.
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Retail
Soriana Sees Same-Store Sales Up 7%-8% In 2010
February 8, 2010
Soriana, Mexico's No. 2 retailer, said that rising consumption would push same-store sales up by as much as 8% in
2010. The company indicated total sales, including new stores, would rise 15% year-on-year, as Mexico rebounds
from a severe recession and the company expands into new territories. Monterrey-based Soriana will add 40 new
stores to its network this year.
Wal-Mart Grows Net Profits By 17%
February 11, 2010
Despite strong competition and a decline in consumption in the retail sector, Wal-Mart Mexico reported positive
results from the fourth quarter of 2009, with an 11% growth in total sales, 9% in the operational profit, a 10% increase
in operational flow (EBITDA), and 17% in net profits. In general, the results of the country's largest retailer were
driven by good performance in sales (+3.8% in same-store sales and an expansion of over 10% on its floor space
during the last 12 months), cost efficiencies, and greater financial products. The number of customers served by the
company in its different formats rose 13.8% in 2009 against the previous year and almost 15% during the last quarter.
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Transportation
Kansas City Southern And Grupo Mexico Sign Rail Accord
February 10, 2010
Kansas City Southern de Mexico (KCSM) and Mexican mining and railway company Grupo Mexico SAB signed an
agreement on interconnection, use of terminal, and rights of way between the two railroad operators. The accord,
which includes the regions of Guadalajara, Monterrey, Altamira, and Aguascalientes, settles a long dispute between
the two companies. KCSM, a unit of Kansas City Southern, runs one of Mexico's three main railways, while Grupo
Mexico operates the other two through Ferromex and Ferrosur. KCSM has also signed an agreement with Ferrosur
that increases KCSM's access in the central states of Puebla and Tlaxcala and the Gulf Coast port of Veracruz. As a
result of the accord, KCSM agreed to withdraw its objections to the merger of Ferrosur into Grupo Mexico's transport
and infrastructure division ITM, which also includes Ferromex. The objections had led to a probe by the Federal
Antitrust Commission, which ruled against the 2005 merger and levied fines against Ferromex, Ferrosur, and their
owners—Grupo Mexico, conglomerate Grupo Carso, and a unit of Grupo Financiero Inbursa—prompting an appeal
by the companies. The accord will increase the efficiency and competitiveness of the Mexican railways.
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Telecommunications & Technology
Televisa Interested In A Stake In Nextel
February 9, 2010
Mexican broadcast giant Televisa has submitted a proposal to the country's antitrust commission Cofeco to acquire a
minority position of up to 40% of digital trunking operator Nextel Mexico, a subsidiary of NII Holdings. Televisa had
previously expressed interest in expanding into mobile telecommunications to complete a quadruple-play offer of
Internet, TV, and fixed and mobile telephony. Televisa has also expressed interest in participating in auctions for a
concession to operate part of a fiber-optic network owned by state electricity firm CFE. Apart from that, Mexico's
transport and communications ministry SCT is currently offering frequency in the 1.9GHz and 1.7GHz bands. Nextel
has also expressed an interest in bidding for mobile spectrum to deploy 3G services.
Mexican Court Rejects Wireless Auction Delay Appeal
February 11, 2010
An appeal by Mexican operators MVS Comunicaciones and Iusacell to delay the auction of wireless spectrum has
been rejected. Last week the two telcos filed an appeal with a Mexican court alleging that the bidding conditions for
the sale were unfair, following which the court announced it would consider the matter. However, having examined
the claims, the court has now ruled that there is insufficient evidence to support delaying the auction.
Mexican Regulator Clears América Móvil To Acquire Stake In Telmex
February 12, 2010
Mexico's antitrust regulator, the Federal Competition Commission (Cofeco), has approved mobile phone carrier
América Móvil's planned acquisition of a controlling stake in Telefonos de México, or Telmex, and regional operator
Telmex Internacional, or Telint, allowing Mr. Carlos Slim to consolidate his holdings in the sector. América Móvil in
January announced it wanted to acquire Carso Global Telecom, which has controlling stakes in Telmex and Telint, in
an all-stock deal. Currently billionaire Carlos Slim controls Telcel with 64.9% of voting rights, and 71.5% of voting
rights in the case of Telmex and Telint. Once the transaction is completed, América Móvil would end up with 59.4% of
Telmex shares and 60.7%-100% of Telint's shares.
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Media & Entertainment
Televisa Launches All-News Channel Foro TV
February 10, 2010
Televisa has made an official presentation of its news channel Foro TV, which will be launched on February 15,
aiming mainly to compete with Milenio TV's 24-hour information segment, and CNN in Spanish service. The Foro TV
launching represents Televisa's second attempt to achieve presence in the informative-channels sector. The first
experiment was in 1988 with Empresa de Comunicaciones Orbitales, or ECO, which broadcast for ten years in Latin
America, the United States, and Europe.
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Farming & Agriculture
Mexico Authorizes 250,000-Ton Sugar Import Quota
February 8, 2010
Mexico's Ministry of Economy (SE) has authorized an import quota of 250,000 metric tons of sugar in order to ensure
domestic supply as the market faces low inventories and rising international prices. Annual demand for the sweetener
is estimated at around 5.26 million metric tons, while 2009/2010 harvest production is estimated at 4.97 million metric
tons. The 2008/09 sugar crop in Mexico fell below the production target due to bad weather. The Ministry indicated
that 90% of the import quota could originate from any country, while 10% will be sourced from Nicaragua, duty-free.
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Economy
Mexico's Recovery Could Be Surprising
February 8, 2010
Mexico's economy, which suffered more than any other in Latin America last year, could expand more than expected
this year, according to several analysts, the Deputy Governor of the country's central bank Manuel Sanchez
Gonzalez, and Deputy Finance Minister Alejandro Werner, who say that Mexico's gross domestic product could
expand beyond the current government estimate of 3%. Mexico's economy, the second-largest in Latin America after
Brazil, was the region's poorest performer last year, contracting 10.1% in the year's second quarter and 6.2% in the
third quarter, year-on-year.
Tax Policy A U.S. Decision
February 11, 2010
The Director of the Tax Administration Service (SAT), Alfredo Guitierrez Ortiz Mena, said that it is up to authorities in
the United States to decide whether the Flat Rate Business Tax (IETU) is creditable or not against their Income Tax
(ISR), because the Mexico Supreme Court has already decided the tax is constitutional. Deciding whether the IETU is
creditable is a domestic matter for the United States.
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Border & Migration
Illegal Immigrant Population In U.S. Plummets
February 10, 2010
The number of illegal immigrants living in the U.S. plummeted to 10.8 million in 2009, from 11.6 million the previous
year, marking the sharpest decline in years and coinciding with the economic downturn, according to a new report by
the Department of Homeland Security. Mirroring a nationwide trend, California's illegal-immigrant population dropped
to 2.6 million, from 2.8 million during this same period, according to the report, which is based on census data. The
only state to see its number of undocumented residents go up during this time was Georgia, which went from 460,000
to 480,000. About 62% of illegal immigrants are from Mexico, and about two-thirds of the illegal immigrants who were
in the country in 2009 entered the U.S. before the year 2000. The report cautioned that changes made to the census
survey could have affected the results.
Mexico Will Require Passports From U.S. And Canadian Citizens
February 11, 2010
As of March 1, Mexico will apply new entry requirements to the citizens of the United States and Canada, with the aim
of improving safety and reciprocity with migratory measures that both countries have adopted in recent months.
According to the National Institute for Migration (INM), which belongs to the Ministry of the Interior, and the Ministry of
Foreign Affairs, visitors from the USA and Canada will be required to present their passports when entering the
country by air, sea or land.
Arkansas: Migrants Win US$2.75 Million Settlement
February 13, 2010
An Arkansas tree-planting company has agreed to pay US$2.75 million to settle a lawsuit in which foreign guest
workers accused it of often paying less than the minimum wage and not paying for all hours worked. The money will
go to 2,200 workers from Mexico and Central America in one of the largest settlements ever reached under the
Migrant and Seasonal Agricultural Worker Protection Act. The workers, who planted pine seedlings throughout the
Southeast, entered the country under a guest worker visa program.
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Politics
Transfer Of State Power To Juarez Is Seen As Encouraging Political Confrontation
February 13, 2010
The state of Chihuahua's Governor Jose Reyes Baeza took steps to shift powers for all three levels of state
government to Ciudad Juarez in a stunning move to address spiraling violence in the border city and show solidarity
with the citizens of Ciudad Juarez, facing the onslaught of drug-related crime. Political opponents have criticized the
measure, calling it an electoral maneuver. The Governor called on President Felipe Calderon to travel to Ciudad
Juarez, just like he has toured the State of Mexico and Michoacán, in view of the recent crisis caused by heavy rains
and flooding in those regions. Meanwhile Interior Secretary Fersparknando Gomez Mont was set to travel to Ciudad
Juarez to report on the government's strategic plan to face violence there. Chihuahua's State Congress rejected the
transferring of the three branches to Ciudad Juarez. According to business organization Coparmex, insecurity in
Ciudad Juarez has caused 10,000 businesses to close down and some 100,000 people to leave the city, many of
them seeking to settle in neighboring El Paso, Texas.
Mexico's Interior Secretary Gomez Mont Leaves Ruling Party
February 10, 2010
Mexican Interior Secretary Fernando Gomez Mont has left the ruling conservative National Action Party (PAN), which
his father helped found, after a public dispute with party leaders over an alliance with the leftist Democratic Revolution
Party (PRD). The PAN and the PRD have worked together to back the same candidates in two Mexican gubernatorial
elections to take the offices away from the Institutional Revolutionary Party (PRI). Gomez Mont has said the alliance
sacrificed ideology for political gain and called it "a sort of electoral fraud." According to sources, Gomez Mont had
agreed to avoid or possibly even impede electoral alliances in the upcoming elections, particularly in the state of
Oaxaca, in order to gain the PRI's support in the Senate to pass the fiscal package negotiated at the end of 2009.
Former PAN Party Secretary Espino Criticizes Calderon For Alliances
February 11, 2010
Manuel Espino, the former national PAN leader, criticized President Felipe Calderón for encouraging electoral
coalitions with the PRD while knowing of agreements made by the Minister of the Interior, Fernando Gomez Mont,
with the PRI. Espino indicated that, from conversations he has held with current party leader Cesar Nava and other
members of the party's National Executive Committee, there was no doubt that coalitions were built with the blessing
and instructions from the President.
Catholic Church Criticizes Reform-Seeking Secularism
February 10, 2010
The Mexico City Archdiocese regretted the adoption of the reform to Article 40 of the Constitution by the Chamber of
Deputies, which proposes to establish secularism as a political principle of Mexico. The ecclesiastical body headed by
the Cardinal Norberto Rivera Carrera beleives that the reform follows irrational antireligious and anti-Catholic
attitudes. Through a statement, Rivera noted that the approval of the constitutional amendment, which must still be
ratified in the Senate and then by at least a majority of state congresses, demonstrates the purpose of left-wing PRD
legislators to limit religious ministry, claiming that the newly approved reform aims not to defend the secular state, but
narrow citizens' religious freedom.
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Justice, Safety & Crime
Chihuahua: 71% Believe Government Incapable Of Handling Drug Cartels
February 10, 2010
Numerous protests have followed the massacre of high school youths who attended a neighborhood party, with
accusations against all levels of government for what citizens consider incompetence in dealing with drug cartels as
well as insensitivity when federal authorities, including President Calderon, initially suggested the teens were involved
in drug dealing. The protests now have a desperate and rebellious tone as seven of every ten people in Ciudad
Juarez are convinced the government has completely lost control of the situation, while 55% have significantly altered
their way of life in order to face the growing danger.
Insecurity In Juarez Closes 5,000 Businesses
February 9, 2010
Crime and economic crisis have hit trade in Chihuahua very hard. Organized crime's extortion of businesses selling
"protection" has doubled over the past few months, according to the local branch of business chamber Canaco,
causing many establishments to close their doors. Businesses most commonly affected are bars, restaurants and
construction material stores. Vehicle theft and armed robbery holdups are additional concerns. Insecurity and the
economic downturn have resulted in drops of up to 55% of regular business levels in the state, according to Canaco,
which has criticized the federal government for failing to implement measures that lead to tangible results. The
business organization has called for the elimination or reduction of a number of taxes they must pay.
Gaviria Calls On Mexico Not To Wait For 30,000 Additional Deaths
February 8, 2010
Former Colombian President Cesar Gaviria indicated that Mexico's learning curve in its current drug war is becoming
worrisome as it is too long. Gaviria has suggested greater use of intelligence groups as well as the use of identityprotected
judges and witnesses. He said democracy in Mexico is paying a significant price, with major damage to its
judicial system, its police, and its army. Gaviria echoed calls also made by former Mexican President Zedillo and
former Brazilian President Cardoso who have called for the legalization of drugs, and called for the U.S. to change its
approach by focusing more greatly on addiction treatment, as well as its health and penal systems. Gaviria declared
that success will never be reached unless the U.S. and Europe reduce drug consumption.
Mexico Arrests Two Reputed Leaders Of Tijuana Gang
February 9, 2010
Mexican federal police arrested two suspected gang leaders, delivering another big blow to a brutal drug cartel that
terrorized the border city of Tijuana for several years. The capture of Raydel Lopez Uriarte (a.k.a. "El Muletas") and
Manuel Garcia Simental (a.k.a. "El Chiquilin") apparently wipes out the existing leadership of the cartel headed by
Teodoro Garcia Simental, who was captured last month. Teodoro and Manuel Garcia are brothers. U.S. Ambassador
Carlos Pascual issued a congratulatory note to President Felipe Calderón, to Secretary of Public Security Genaro
García Luna, and the Baja California government authorities, indicating that President Obama's administration
remains fully committed to the increasingly close cooperation between Mexico and the United States in the
administration of justice.
Cops Hailed As Models Arrested In Tijuana
February 10, 2010
Two officers who had recently been lauded as part of a new breed of honest cops, promoted to become key players
in a drive to overhaul one of Mexico's most notorious police forces, have been arrested. Now Francisco Ortega and
Juan Carlos Espinoza are among five Tijuana police officers under arrest in a crackdown on a drug gang that has
beheaded rivals and then hung their mutilated corpses from freeway bridges or dissolved them in vats of caustic
soda. The five officers were caught at a Tijuana house this week along with six cartel members who were holding two
rival gangsters captive. Both men had military backgrounds.
Calderon Remains Firm On Juarez Occupation
February 11, 2010
President Felipe Calderon said that residents in the troubled border city of Ciudad Juárez, Chihuahua, "aren't alone,"
as they have the support of the federal government, the army and the president himself. Calderon announced that the
armed forces will continue their occupation of the city because "they are and have been fundamental" in blocking drug
cartels' battles for territorial rights. The president also reiterated his decision to comprehensively expand the military
strategy there. Calderon rebuffed critics' calls to withdraw soldiers, arguing that the situation would actually worsen
and leave Juarez residents in the "bloody hands of criminals." Juarez is occupied by some 16,000 local, state and
federal police and soldiers, and has received more federal security funding than any other city, yet it is the bloodiest in
Mexico. Since Calderón began the war on drugs in December 2006, more than 3,700 people have been killed in drug
cartel-related violence in Juarez.
Calderon Confronted By Victims' Families During Visit To Juarez
February 12, 2010
President Calderon and his cabinet members confronted a wave of disenchantment and protests by family members
of a recently murdered group of teens, during one of the meetings held in Ciudad Juarez, which Calderon attended as
a sign of his commitment to setting things right in the city of more than 1.3 million bordering El Paso. The mother of
two of the victims accused Calderon of doing very little to enforce justice, and confronted the president, stating that if
his children had been the victims, he would search for the criminals until found. Several of the women in attendance
stood up and faced away during President Calderon's address offering the government's apologies.
Western Union To Pay US$94 Million In Suits Involving Money Laundering By Cartels
February 11, 2010
Western Union Financial Services and the state of Arizona announced a settlement Thursday in which the company
will pay US$94 million to resolve a series of lawsuits over whether the money-transfer network was doing enough to
combat money laundering by Mexican drug cartels and human smugglers. Under court-approved terms, Western
Union will pay US$21 million to reimburse the state's legal and law enforcement costs between 2003 and 2007,
contribute US$50 million to a novel law enforcement grant program directed by the attorneys general of the four
states on the U.S.-Mexico border, and commit US$23 million to strengthen its own anti-money-laundering efforts
under an independent monitoring program.
Officials Say U.S. Not Doing Good Job Of Seizing Cash Headed South
February 14, 2010
When federal agents found cocaine, handguns and an unexpected US$1,379,510 in cash bundled up and waiting for
a short trip back to the Mexican border during a sting in June 2008, they also found ledgers indicating the Gulf Cartel
already had used the Katy operation to move US$200 million in drug proceeds south of the border. Current and
former law enforcement officials say the federal government should devote more agents and equipment to search for
billions of dollars hidden in vehicles headed south, as well as infiltrating the bulk smuggling operations. Despite a
series of large cash seizures in Houston, El Paso and Mexico City, the latest Justice Department report on drug
trafficking estimates cartels are getting as much as US$40 billion in profits out of the country each year. Cash going
south is not just drug proceeds; it is also related to alien smuggling proceeds as well as the smuggling of stolen
petroleum coming out of Mexico.
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Health & Science
Health Ministry Accused Of Exaggerating AH1N1 Influenza Scare
February 10, 2010
During a vaccination campaign held at the legislative premises, PRI Senator Francisco Labastida Ochoa refused the
AH1N1 influenza vaccine claiming that the Health Ministry had exaggerated the magnitude and seriousness of the
epidemic, and suggested that the Ministry had acted on behalf of the interests of some pharmaceutical laboratories in
order to allow them to sell their vaccines. Labastida, former Governor of Sinaloa and the first PRI presidential
candidate to lose an election, pointed to information from the European Union claiming that the World Health
Organization (WHO) exaggerated the scale of the influenza outbreak. Labastida indicated that magnification of the
problem caused severe damage to the economy and employment during an already difficult economic crisis. The
federal government has had a difficult time convincing people to use vaccines purchased to combat the said disease.
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Other
Major Flooding Affects Mexico City While Authorities Blame Each Other
February 8, 2010
Local and federal authorities have blamed each other for the scale of the flood damage, after Mexico City, the state of
Michoacán and parts of the State of Mexico (Edomex) received record amounts of rainfall on February 4 causing the
Río de los Remedios and La Compañía rivers to burst their banks. The rains were extremely unusual for what is
normally a dry period in Mexico, and were caused by a polar mass and cold front coupled with strong winds,
according to the national meteorological service (SMN). The DF government was quick to blame national water
authority Conagua for failing to warn of the impending disaster on time. Conagua issued a press release denying the
accusation, saying it had alerted authorities of the possibility of heavy rains. The authority is currently rehabilitating
the DF's drainage system, and construction is underway on the Mex$14 billion (US$1.06 billion) Emisor Oriente
drainage tunnel, which is expected to double the city's drainage capacity. The interior ministry (Segob) had declared
emergencies in four boroughs of Mexico City, as well as five municipalities in Michoacán and four in Edomex. The
death toll from the heavy floods and mudslides has increased to 38, with most of the casualties, 27, occurring in
Michoacán.
Ballad Of San Patricio
February 13, 2010
History, it's often been observed, is written by victors, which might explain why an especially compelling chapter of
the Mexican-American War remains so infrequently told, at least in the U.S. The chapter in question is about the San
Patricios, a company of Irish immigrants pressed into service by the U.S. Army. Ideologically opposed to the fight,
they switched sides, choosing to stand alongside the Mexican military rather than the forces of their newly adopted
homeland. When the conflict ended, the members of the battalion were executed for their desertion. Their deeds were
largely forgotten, except among the people of the Churubusco region outside Mexico City who maintain a memorial to
the San Patricios. Now, Ireland's celebrated ambassadors of borderless world music, the Chieftains, are seeking to
change that with an ambitious new album, San Patricio, which tells the story of the troops through music.
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