Trade Game

Central American leaders said Wednesday that trade with the U.S. is fueling steady growth in the region, but they must forge closer ties with one another to continue advancing.

Salvadoran President Tony Saca, a close ally of Washington, urged counterparts to boost infrastructure and investments to withstand a sharp economic downturn in the United States.

"We have to see Central America as a bloc," Saca told a panel at the World Economic Forum on Latin America in Cancun, where he announced plans to explore for natural gas with neighboring Guatemala along the nations' Pacific coasts.

Read the full article.

Importance: If problms continue and all th countries are tied together then this could just create more problems or, this could turn out great we may never know.

Grade this post.

Science!!!

Mexico and the United States signed here on Monday an agreement on cooperation in science and technology for security issues.

The agreement was signed by Mexico's Interior Secretariat Juan Camilo Mourino Terrazo and U.S. Secretary of Homeland Security Michael Chertoff on the sidelines of the ongoing North American leaders' annual summit here.

The aim of the agreement is to establish a framework to promote, develop and facilitate bilateral cooperation activities in science and technology and other national security issues, according to a press release from the Mexican delegation.

Reaf the full article.

Importance: Mexico will probably gain alot from this agreement since the U.S. is showing them their technological toys.

Grade this post.

Mxico and U.S.

DALLAS (AP) -- Mexican President Felipe Calderon made an investment pitch Tuesday to business officials, saying his country has "solid economic fundamentals" and is dealing with transportation needs and crime.

And while Calderon has criticized U.S. immigration policy, he said U.S. investment in his country could ease the pressure for Mexicans to move -- legally or otherwise -- to the United States.

"The goal is not to see every year Mexican people trying to cross the border to the United States," Calderon said. "Our goal is to create opportunities for our people in Mexico. That is absolutely possible."

Read the full article.

Importance: If Calderon can make his words come true no only will Mexico's economy grow but, the U.S. government will have a maller immiration problem.

Grade this post.

MEXICO CITY, April 24 (Reuters) - Mexico's peso firmed on Thursday and bond prices fell after high inflation data reduced expectations that the central bank will lower borrowing costs any time soon.

The peso MEX01 strengthened 0.27 percent to 10.448 per dollar, nearing a two-year high, while long-term bond prices fell for the 10th straight day as investors bet against the central bank easing interest rates soon to fight an expected impact on Mexico by the U.S. economic slowdown.

The government's benchmark 10-year peso bond dropped 0.338 of a point in price to bid 99.649, pushing its yield up 5 basis points to 7.80 percent, a three-month high. Bond yields move inversely to prices.

Meanwhile, the benchmark IPC index .MXX fell 0.36 percent to 31,731 points, dragged down by losses in shares of telecommunications bellwether America Movil and mining companies. Stocks pared losses after the IPC fell more than 1 percent in early trade.

On Thursday, the central bank reported that higher costs for goods like tomatoes and chicken pushed consumer prices up 4.53 percent in the 12 months through April 15.

Full Story

Importance: Just some updates on essentials in the Mexican economy. There are some interesting global connections, and it the economic link between the U.S. and Mexico becomes very obvious...Though it does not seem that the Mexican central bank is allowing everything that happens in the U.S. effect its decisions.

GRADE THIS POST!!!!!!!!!!!

Changing Immigration Attitude

Mexico loses more than just workers when its people cross the U.S. border illegally in search of jobs. It loses fathers, mothers, sons, daughters, sisters and brothers. It loses social structure.

The remittances expatriates send home can never compensate for the loss of people whose energy, talents and integrity are essential to Mexico's future.

Remittances - nearly $24 billion in 2007, according to the Mexico's Central Bank - help individual families but have a corrosive effect on Mexico. Without them, political pressure would build at home to create jobs.Without the relief valve illegal migration offers for Mexico's unemployed, there would be enormous demand to deal with the corruption and lack of opportunity in Mexico.

Mexico is showing a welcome recognition of the downside of illegal immigration.

Earlier this year, Mexican President Felipe Calderón called it his "duty" to create opportunities at home. "I'm not a president who likes to see Mexicans leave the country, because every immigrant who leaves Mexico represents a loss," he said in February.

Full Story

Importance: Stimulating job growth at home and discouraging illegal immigration will help build and strengthen the Mexican economy. Before the government was actually encouraging illegal immigration by handing out booklets that gave safety tips; now that they realize the detrimental effects immigration is having on the economy they are beginning to change their mind, now printing booklets depicting the hardships and danger of attempting illegal immigration.

GRADE THIS POST!!!!!!!!!

India, Mexico sign pacts in civil aviation, energy

Mexico City (PTI): India and Mexico have signed two agreements for cooperation in civil aviation and energy sectors as part of their efforts to strengthen bilateral ties.

Union Minister for Non-Conventional Energy Vilasrao Muttemwar and Mexico's Minister for Foreign Relation Patricia Espinoza and Secretary of Energy Georgana Kessel inked the agreements here on Thursday.

Mexican President Felipe Calderon, who was present at the singing ceremony along with visiting Indian President Pratibha Patil, said India was an "important" partner for his country in the Asia-Pacific region.

The first agreement calls for cooperation in air services between the two countries while the second one was related to enhanced ties in the energy sector.

Full story here

Importance: These agreements are good for both parties involved. They not only strengthen bilateral ties, but they're also projected to increase inclusive economic growth. The agreements improve the world order regarding energy and civil aviation.

GRADE THIS POST!!

Bribes

Mexicans are spending more on bribes than they were a couple of years ago.

Mexicans paid the equivalent of about $2.6 billion in bribes last year, according to the nonprofit group Transparency Mexico. That’s 42% higher than two years earlier and an average of more than $24 for each of Mexico’s 105 million people.

Much of the money went to fix parking tickets, get garbage collected or secure parking spots from the legions of informal attendants who block off spaces and charge for them.

Corruption in Mexico is rife and the informal economy huge. If you’re stopped for a traffic infraction, it’s often cheaper and easier to pull out your wallet than to go to the station to face all the paperwork.

Bribes are paid for a wide range of activities, Transparency Mexico found. People pay them to get telephone service installed, loans approved, to prevent illegally parked cars from getting clamped or to sell things on the street without authorization.

The survey showed that 197 million bribes were paid nationwide last year, a big jump from the 115 million in 2005. But while people here are paying more bribes than they did two years ago, they are spending less on each. The average bribe was about $13, compared with $17 in 2005.
The poll was based on interviews with 16,000 people around the country in December. It has a margin of error of less than 1 percentage point.

Link

Importance: So the price of bribes are dropping, obviously as there has been an increase in participation nationwide. This should help to demonstrate just how common corruption is considered in Mexico.

Mexican Investments in India

President Pratibha Patil, on her visit to Mexico, has said that Indian investments into Mexico have been growing steadily and that now India looks forward with enthusiasm on the part of Mexican investors to enter the Indian market.

"There are tremendous opportunities in the areas of infrastructure and tourism in India which can be exploited by Mexican entrepreneurs. We welcome investments being made by Mexican companies in India," she said during ceremonial reception at Los Pianos, the Presidential House, hosted by Mexican President Felipe Calderon on Thursday.

The President expressed hope that the India-Mexico High Level Group on Trade, Investment and Economic Cooperation will meet in June this year to draw up a roadmap for the rapid development of trade and economic relationship between the two countries.

In her banquet speech, the President further said that the democratic yearning of both the countries, faith in non-violence and dialogue, the pluralistic and secular credentials of policies make the two countries natural allies in facing the global challenges of today.

Full Story

Importance: In addition to discussing their investment ideas, the two countries also signed an agreement in energy and aviation sectors. In regard to Indian investment in Mexico, I have to wonder how the Mexicans allow it, considering their feelings on foreign investment; perhaps, their ire is only directed toward developed countries that they believe would take advantage of their situation.

GRADE THIS POST!!!!

Flying Peso's

Mexico's peso reached the highest level in two years after a report showed an unexpected increase in U.S. retail sales, underpinning bets that demand for exports from Mexico's biggest trading partner will stay strong.

The peso, the biggest gainer among the six most-traded currencies in Latin America, was also

buoyed by speculation further reductions in U.S. interest rates will make local fixed- income assets more attractive to foreign investors.

Speculation that exports ``will sustain currency flows detonated gains in the peso,'' said Alejandro Martinez, a fixed- income analyst in Mexico City at HSBC Mexico SA. ``The increase in the yield differential also helps maintain a strong peso.''

Read the full article.

Importance: It is good that the peso is rising in value, but if it's all based on or mostly based on what the U.S. economy is doing don't expect for it to last.

Grade this post.

Sit-In

Lawmakers had to cram into conference rooms to press ahead with routine business on Tuesday.

Leftist MPs seized the podiums of both houses last week in protest at plans to ease limits on private involvement in the state oil giant, Pemex.

The government says Pemex needs outside investment to boost falling production.

Read the full article.

Importance: The oil is in the hands of the government and if it's not then no one knows what will happen, but people are picking sides faithfully.

Grade this post.

Oil Reform Leads to Hunger Strike

The government says the Pemex oil company needs outside investment to boost falling production and increase exploration for new reserves.

But the protesting deputies and senators argue that this will lead to a creeping privatisation of Pemex.

The protesters want a broad debate on Pemex, in state hands for 70 years.

Leftist deputies and senators have been camped out on the floors of the upper and lower houses since they took over the Congress building last week.

In the lower house, lawmakers from the Democratic Revolution Party (PRD) and two other smaller parties have piled chairs around the speaker's platform.

Full Story

Importance: The opposition to allowing Pemex freedom for expansion says multitudes for the political culture of Mexico. People are so wary of foreign investors taking advantage or a share of Mexican profits that they are actually going to limit their own growth and allow Pemex to continue to run overbudget and unefficiently.

GRADE THIS POST!!!!!!

Assessment Complete

LONDON (Thomson Financial) - Mexico's Industrias Penoles S.A.B. de C.V. will spin off its precious metals assets into the Fresnillo Group and plans to list the company on the main market of the London Stock Exchange in May.

Fresnillo, the world's largest primary silver producer, is estimated to be worth about $8 billion and is a potential FTSE 100 candidate.

Proceeds from the new shares in the initial public offering, expected to be about $900 million, will be used by Fresnillo to re-pay existing debt and to finance expansion plans.

The company did not disclose possible proceeds from the sale of existing shares. However implied proceeds of about $1 billion can be estimated as Penoles said it expects to retain about three quarters of the company following the offering.

Fresnillo, Mexico's second-largest gold producer, produced about 34.4 million ounces of silver and approximately 280,000 ounces of gold in 2007 and aims to double silver output within the next 10 years and increase its gold production.

Full Story

Importance: Sounds like extending privatization to me...

Marine killing suspect caught in Mexico

MORELIA, Mexico A Marine suspected of killing a pregnant colleague told police he slept in fields and survived by eating fruit that he found during a three-month manhunt that ended with his arrest in western Mexico, authorities said.

FBI agents and police in the small town of Tacambaro arrested Cpl. Cesar Laurean on Thursday. He is charged with first-degree murder in the death of Marine Lance Cpl. Maria Lauterbach, who had accused him of rape. Her burned remains were found in January in the backyard of his home near Camp Lejeune.

Full story here.

Importance: Police have finally caught the man who murdered, burned, and buried the pregnant marine months ago. This helps the U.S.-Mexico relations because there were arguments about what should be done. Look here for updates on his trial and sentencing.

GRADE THIS POST!!!

Absolut-ly Not!

The contours of the billboard map of Mexico and its neighbors may have been familiar, but not its political boundaries: California, Arizona, Nevada, New Mexico and Texas were shaded in the green of a Mexico that stretched from close to Canada to the jungles of Guatemala. "In an Absolut World!" the billboard proclaimed, alongside the image of a bottle of Absolut vodka.

Ruminating over the loss to the U.S. of what had been Mexican territories before the Mexican-American war of 1846-1848 may have been an ad maker's idea of a good way to sell hard liquor and get a chuckle south of the Rio Grande, but some up north didn't find it so funny. After a barrage of complaints on its Internet site and threats to boycott the Swedish-made brand in the U.S., Absolut announced it was withdrawing the advert. "In no way was this meant to offend or disparage, nor does it advocate an altering of borders, nor does it lend support to any anti-American sentiment, nor does it reflect immigration issues," wrote Absolut spokeswoman Paula Eriksson on the company website. "Instead, it hearkens to a time which the population of Mexico may feel was more ideal."

That may be overstating it, somewhat: It's unlikely that most Mexicans really feel that mid-19th century life was exactly "ideal." But the heat generated online by the ad does reveal that the war and resultant redrawing of the map 160 years ago can still spark a furor on both sides of the border. Thousands of critics accused the ad of being anti-American and took pains to defend the inclusion of the southwestern states into the union. "It is absurd to believe that the U.S. stole Texas and California since most inhabitants of the Southwest considered the 19th century Mexican government a totalitarian regime and wanted independence, and rightfully so, from Mexico," wrote a blogger who signed in as CPTLOU on the Absolut forum.

Read the full article.

Importance: This is hilarious.

Grade this post.

Trade with Barbados

Barbados intends to move closer to Latin America on trade and other economic matters.

That indication came from Prime Minister David Thompson who said while in Miami on Monday that his Government saw the Spanish and Portuguese speaking nations of the Western Hemisphere as an alternative to some of island's long-standing trading partners.

"I believe that as Barbados and the Caribbean continue to consider strategies for countering economic challenges, increased attention must be given to the potential which Latin America offers as an alternative to some of our traditional trading partners," Thompson said.

Read the full article.

Importance: New trading partners! These guys aren't trading Poke'mon cards either, so Mexico should see good economic outcomes from this.

Grade this post.

Meeting in Cancun

The World Economic Forum released today more details during a press conference on the eve of its regional meeting in Latin America. The World Economic Forum on Latin America, scheduled to take place in Cancún, Mexico, from 15 to 16 April 2008, will bring together over 500 top global leaders from business, politics, government, academia, civil society and the media from 46 countries.

Under the theme "Securing a Place in an Uncertain Economic Landscape", the meeting will be co-hosted by the Government of Mexico under the patronage of President Felipe Calderón, who will be participating in the event.

The meeting in Mexico will focus on discovering and highlighting business opportunities brought about by the successful execution of a priority reform agenda. A globally attuned agenda that secures Latin America’s place in a shifting global landscape will be built around five core pillars:Global Trends and Economic Shifts, Asia and Latin America, Merging Business and the Environment, Growth through Critical Investments, Enhancing Innovation in Business and Social Issues.

Read the full article.

Importance: Any move to improve economic standards of Latin America is a good move. Hopefully this meeting will acomplish its goals.

Grade this post.

Oil Reform

MEXICO CITY (Reuters) - A plan to shake up Mexico's flagging state-run oil sector met with muted reaction on Wednesday, with most seeing it as positive but not enough to restore declining output and reserves overnight.

The government's proposal, which was diluted to give it the best chance of passing through Congress, proposes more hiring of private companies across the oil industry through "incentive contracts" that offer bonuses for work well done.

Foreign oil majors, who want Mexico to join the rest of the world in offering risk-sharing joint ventures, especially in the huge deep-sea sector, mostly declined to comment as they huddled in meetings over the plan.

But analysts see the sweetened service contracts doing little more than drumming up more business for oilfield service companies such as Schlumberger (SLB.N: Quote, Profile, Research), which state oil monopoly Pemex hires to help with engineering work.

"My initial impression is that it's relatively modest," said RoseAnne Franco at PFC Energy. "For the international oil companies it comes down to being able to book reserves."

Pemex, a top U.S. oil supplier, has long complained about Mexico's barriers to private oil investment and says it needs partners to help it unlock huge deepwater reserves as yields decline at its shallow water and onshore fields.

But many question whether the proposed contracts will attract big players like BP (BP.L: Quote, Profile, Research) and Petrobras (PETR4.SA: Quote, Profile, Research) into deep-sea exploration, given such costly and risky ventures are repaid in other countries by giving the partner a share in reserves.

"The important aspect of any contract is the incentive part. If someone is doing a really good job they should be paid for it. But there are different types of incentive around the world so we'll have to wait and see what they are offering," said a Mexico-based executive for a foreign oil major.

Full Story

Importance: Calderon is finally acting on the nation's need for an alteration in their oil operations. Even though this proposed reform is watered down in order to be passed in the Mexican Congress, it is a start. The political culture of the country would rebel against a reform too radical because the majority of the population is still against foreign investment despite Pemex's dire need of a partner in oil welling.

Venezuela to Nationalize the Cement Industry

MEXICO CITY -- Venezuelan President Hugo Chavez is planning a government takeover of his country's cement industry, his latest effort to impose state control over key sectors of an economy battered by shortages and inflation.

Chavez made the declaration during a televised cabinet meeting late Thursday. He has long accused foreign cement companies of keeping prices high and supplies tight by exporting their products to other countries while Venezuela is suffering a housing shortage.

"We're going to nationalize the cement industry. Enough already!" Chavez said.

The action is a blow to Monterrey, Mexico-based Cemex, the largest producer in Venezuela. Industry companies LaFarge of France and Switzerland's Holcim Ltd. would also be affected.

Chavez's government said it soon would begin compensation talks with the firms. But Mexico's Finance Minister Agustin Carstens on Friday condemned Venezuela's move against one of Mexico's largest and most successful multinational companies.

Full Story

Importance: Well the decision is Chavez's but a lot of the action this development is causing will be played out by Mexico's Calderon thanks to our friend globalization, inherently and heavily aided by multinational corporations (couchCEMEXcough). Thanks to our wonderful Globalization Briefing Paper, I believe we can all see the importance of the ramifications of Mr. Chavez's actions for Mexico. Although, I do feel the need to point out the irony in Mexico's taking offense at another nation's lack of faith in market operations, albeit their problem has mostly been with foreign investment as opposed to Venezuela's communistic approach of blaming business owners for the effects of governmental tinkering in the economy ...

Tied by Cows

A group of 16 leaders from the U.S. grain, pork and beef industries visited meat processing plants, retail and food services outlets, as well as cold storage facilities and freight forwarders in Mexico, to gain a deeper understanding of how U.S. red meats are currently utilized and where there are growth opportunities for U.S. beef and pork products in Mexico.

“Mexico is a critical export market for both U.S. beef and pork, and has huge upside growth potential,” said U.S. Meat Export Federation President and CEO Philip M. Seng. “As a result, the export market to Mexico is equally important for U.S. corn and soybean growers who provide the feed to support our livestock.”

Mexico remains the leading destination for U.S. beef and beef variety meat exports, with exports totaling 792.4 million pounds during 2007. The United States supplies more than 80 percent of Mexico’s beef imports. According to U.S. Department of Agriculture projections, the beef market in Mexico is projected to grow a modest 2 percent in 2008, followed by a 15 percent jump in 2009, with imports expanding 91 percent over the next 10 years.

Raed the full article.

Importance: This shows how interconnected these three countries are. Free trade agreement my butt.

Grade this article.

Beaches Downown

It's Spring Break in Mexico, but the newest beach attraction doesn't have wet T-shirt contests or inflatable-banana rides. And there's no sea, either.

None of this has deterred thousands of Mexico City residents from seeking a taste of vernal release in the middle of this concrete jungle, nearly 200 miles from a coast.

As throngs of well-off Mexicans raced off in March to join U.S. college students at resort hot spots such as Acapulco and Cancun, the Mexico City government has offered a consolation prize for residents unable to get away: fake beaches.

Read the full article.

Importance: The government is doing the people an interesting favor but, I don't know how much I'd like my tax dollars spent in that fashion.

Grade this post.

Paveing New Roads

Mexican President Felipe Calderon announced Tuesday a 4.5 billion peso ($420.6 million) highway project connecting the southern city of Oaxaca to the coastal resort towns of Huatulco and Puerto Escondido.

The project aims to create a 283-kilometer highway that would reduce the drive from Oaxaca to Huatulco - currently an eight-hour endeavor through rugged mountains - to three hours. It would include the construction of new highway infrastructure such as bridges, tunnels and bypasses, as well the modernization and expansion of existing roads, according to a press release from the Communications and Transport Ministry, or SCT.

The government will finance the project with a combination of public and private investment from the new National Infrastructure Fund.

Read the full article.

Importance: Farmers moving into cities will be able to sell their land now which is cool. Tourism will probably increase which is cool.

Grade this post.

Medical Tourism in Mexico

March 27 (Bloomberg) -- The only way Bridget Flanagan, a 21-year-old college student from Olympia, Washington, could afford the obesity surgery she needed was to go to Mexico. Her health insurance didn't cover the treatment.

Traveling 2,000 miles for gastric banding surgery at Hospital San Jose in Monterrey, Mexico, saved her $6,600, making it affordable. The procedure was a success, allowing five-foot- tall Bridget to drop 45 pounds so far off her peak weight of 275.

Health-care companies and investors see a new market in patients like Flanagan. Tecnologico de Monterrey, the private university that owns San Jose Hospital, plans a $100 million medical center in Monterrey. Grupo Star Medica, the builder of seven Mexican centers in five years, is accelerating an expansion aimed at Americans, funded partly by billionaire Carlos Slim.

``This is a great opportunity not only for Mexico, but also to reduce health costs in the U.S.,'' said Marco Antonio Slim Domit, Carlos Slim's son and chief executive officer of his Mexico City brokerage Grupo Financiero Inbursa SAB. The firm took an undisclosed stake in Star Medica, a privately held hospital chain based in Morelia, Michoacan, in southern Mexico.

While Mexican authorities declined to estimate how much the country's health-care industry is expanding to handle medical tourism, companies are building new hospitals, clinics and surgical centers.

Full Story

Importance: The market for medicine appears to be much more competitive than Mexico's other markets like oil and telecommunications. Marketing toward foreign patients is a great opportunity for Mexico, and its location of just south of the U.S. makes it much more practical for American citizens than places like India and Singapore who have also attempted attracting foreign patients. Mexico's actions only highlight the level of globalization that the world has come to or at least is fast approaching.

Obrador Back!

ONLY a few weeks ago Andrés Manuel López Obrador was sliding towards political oblivion. Narrowly but clearly beaten by Felipe Calderón in a presidential election in July 2006, Mr López Obrador, a left-wing populist who was once the mayor of Mexico City, organised months of protests against what he alleged was electoral fraud. His contempt for Mexico's democratic institutions scared off many of his erstwhile supporters and split his Party of the Democratic Revolution (PRD).

Now he is on his way back—and that is a problem for the president. First Mr López Obrador seized on a timid government proposal to open up parts of Mexico's declining oil industry to private investment. He has raised the bogie of “privatisation”, striking a nationalist chord with many Mexicans.

More significantly, he appears to have reasserted his grip on the PRD. Alejandro Encinas, a close ally who stood in as mayor when Mr López Obrador resigned to run for president, won a slim but seemingly decisive victory in a ballot for the party leadership held on March 16th. His opponent, Jesús Ortega, is a senator who led a moderate “new left” faction. He dismissed Mr Encinas as representing “a marginal and self-excluding left”. In a droll reversal of the presidential election, Mr Ortega cried fraud (as did his opponent).

The result showed the depth of the PRD's divisions. Assuming it hangs together, its legislators, who form the second-largest block in Congress, are likely to adopt a more combative stance towards Mr Calderón. But that might not help the party in a mid-term election due in July next year.

Full Story

Importance: President Calderon is in for some tough times with the legislative body. Before he struggled with legitimacy from the population, now he faces gridlock with Mexican congress. With Mexico in need of political reform, these new cleavages are only going to cause potential policy actions to be stuck in legislation.

New Dinosaur

RINCON COLORADO, Mexico (Reuters) - Scientists have discovered a new species of plant-eating dinosaur in Mexico whose large neck frill and three giant horns helped it attract mates and fight predators on a jungly beach 72 million years ago.

Mexico's Coahuila desert -- now rocky and cactus-filled -- was once covered by ocean where dinosaurs of all kinds thrived along the coast and hid from a giant relative of the fierce predator Tyrannosaurus rex.

Paleontologists say they have found evidence of a new species here related to the Triceratops, known to have the largest head of any animal ever to have walked the earth.

The new species is slightly smaller at around 23 feet (7 meters) than most Triceratops, but its three-foot-long (0.9 meter) horns were just as big. Holes in its neck frill would also have set it apart.

Full Story

Importance: While the archaeological study is scientifically intriguing, it has present day relevence as scientists will be using the information they uncover about these creatures' reactions to rising sea levels to predict the behaviors of current day wildlife.

GRADE THIS POST!!!!!!!!!!!

Drug Lord Arrest

Mexican police have arrested a US citizen accused of being a key figure in a major drug cartel based in the border city of Tijuana.

Gustavo Rivera Martinez was responsible for the logistics of smuggling drugs to the US and laundering the proceeds, Mexico's interior minister said.

He is wanted by the FBI and the US Drug Enforcement Agency which offered a $2m (£1m) reward for his capture.

Mr Rivera Martinez would be sent back immediately to the US, officials said.

"This individual is one of the criminals most sought after by the DEA and FBI," said Mexican Interior Secretary Juan Camilo Mourino.

Full Story

Importance: This arrest puts another dent in the Arellano Felix drug cartel. The measures taken against drug trafficking have been helpful in taking out this cartel at least; however, other cartels are gaining momentum, and the government still has a lot ahead of it before it achieves the freedom from drug crime and violence that it seeks.

Grade this post!!!!!!!!

Bargaining for Lead Paint.

Mexican President Felipe Calderon said his government is in talks with China to reach a settlement over tariffs on Chinese textiles and other products currently as high as 1,000 percent.

The negotiations were disclosed by Calderon today at a gathering of textile industry executives in Mexico City.

In December, Mexico announced a plan to keep duties on Chinese textiles, toys and shoes while it reviews the imports for possible unfair trade practices. The tariffs, in place since 1993, don't meet World Trade Organization rules. Mexico said last year that it is allowed to keep the import duties while it completes the review.

Read the full article.

Importance: Calderon is trying to save the Mexican citizens money which is good, and he's optimistic about the talks. Now the only problem is he's bargaining for Chinese products that recently have not been on th good side of the news.

Grade this post.

Cow Trouble?

Mexico and the U.S. Department of Agriculture are negotiating a trade agreement that would presumably pave the way for the export of U.S. breeding stock, according to the Texas Department of Agriculture.

The announcement comes on the heels of a trade agreement last week that includes breeding stock between Mexico and Canada.

The action prompted Texas Agriculture Commissioner Todd Staples to block some Canadian cattle from passing through the state's export facilities and into Mexico.

Read the full article.

Importance: The U.S. seems to think that they have the right to sell Mexico cattle. The last paragraph is pretty funny because Staples says he believes in free trade, but it must also be fair trade. It's people like Mr. Staples who want to have "free" trade, but only if he benifits that keeps the world of socialism turning.

Grade this post.

GDP Increase?

March 11 (Bloomberg) -- Mexican President Felipe Calderon said changes to the methods used to calculate economic growth will be ``beneficial'' and ``probably surprise'' analysts.

Mexico's economy may reach $1 trillion, narrowing the gap with Brazil, Latin America's biggest economy, because of a change in the way output is calculated, according to Citigroup Inc.'s Banamex unit and UBS Pactual. The statistics agency may announce the changes as soon as this month.

The revised GDP figures may show that last decade's efforts to sell state-owned businesses, sign free-trade accords and facilitate financing in the local market for private companies provided a greater spark to growth than prior numbers had indicated, said Alfredo Thorne, head of Latin America research for JPMorgan Chase & Co. in Mexico City.

``This will start a lot of debate and comparison with other countries in the region,'' said Sergio Luna Martinez, director of economic research at Citigroup Inc.'s Banamex unit in Mexico City.

Under the changes, economic growth will be based on the composition of the economy in 2003, instead of 1993, Calderon said. Industries such as telecommunications will probably be given greater weight, while the agriculture industry will be pared back, Thorne said.

Full Story

Importance: So Mexico's GDP has increased...or at least it has on paper, as the only change that has been made is the way their are calculating the statistic. Nevertheless, economic growth is always good and other sources indicate that production and exports are doing well this month in Mexico.

Assessment Complete

Mexico U-23 soccer team ice cold in Frisco

With Olympic qualifying on the horizon, Mexico's under-23 team closed the warm-up portion by sticking to a peculiar, chilling trend: not scoring.

Mexico played Finland to a scoreless draw Thursday in front of a crowd of 11,780 at Pizza Hut Park. It was Mexico's fifth and final match before beginning CONCACAF Olympic qualifying next week.

Mexico, which scored two goals in its first match against Chile on Feb. 19, failed to score on offense for the fourth consecutive game under coach Hugo Sanchez.
Only hours before the game, the Pizza Hut Park pitch was buried by about four inches of snow. Despite the frigid conditions, Mexico showed promise on offense and a solid passing game while setting up shots at Finland's midfield.

Full story here

Importance: coming soon...

GRADE THIS POST

Mexico's new justice

The Mexican Congress has approved an overhaul of the country's judicial system, which is so rife with corruption, caprice and ineptitude that many doubted such a day would ever come. The reforms require a constitutional amendment to take effect, meaning they must be ratified by 17 of Mexico's 31 states. If the overwhelming support of legislators is an indicator, they should pass with ease.

Under the current system, based on Roman and Napoleonic codes, lawyers submit their cases in writing, and judges come to their decisions in secret. Under the new system, defendants would be granted the presumption of innocence, trials would be open to the public and lawyers would present oral arguments, among other welcome changes. Another provision, however, would permit organized crime suspects to be held for up to 80 days without being charged. This is particularly worrisome because Mexico's definition of organized crime is an illegal undertaking by three or more people. And trials for such suspects would still be conducted in secret. The potential for abuses and for a two-tiered justice system to emerge is enormous.

Full story here.

Importance: This is a major change in the judicial system in Mexico. The proposition would move Mexico away from the Napoleonic code and towards a system much like the U.S. Defendants would be innocent until proven guilty and trials would be completely open to the public. However, it would be possible for someone to be detained for 80 days without charge. The amendment is most likely going to happen. The senate has already approved.

GRADE THIS POST!

Mexico Cuts Taxes

President Felipe Calderón announced a 60-billion-peso ($5.6 billion) package of tax breaks, utility-rates discounts and spending programs Monday to help Mexico's economy weather the slowdown in the U.S. economy.

Companies will get a 3 percent income tax break for the next five months and 10- to 20-percent electricity rate reductions, as well as credit from development banks and an increase in infrastructure spending to help them overcome the effects of what Calderón called “an adverse international environment.”

“Since last year, the economic performance of our principal trading partner (the United States) has show signs of deceleration,” Calderón said at a ceremony to announce the package. “The problems in its financial sector and housing market make its prospects for growth in 2008 not very encouraging.”

Importance: Mexico is basing itself off the U.S. which probably is not a good call, but no one can argue tax cuts. The Mexican citizens do need this.

Grade this post.

Oil Stays with the Government

Mexican President Felipe Calderon's plan to overhaul energy laws and allow private investment in the state oil monopoly lacks political support, a prominent opposition senator said.

Senator Francisco Labastida of the Institutional Revolutionary Party, an opposition group, said ``there's no chance'' that ``comprehensive reform'' will pass. He spoke in an interview today at the senate building in Mexico City.

Failure to open the oil industry may mark the biggest political defeat yet for Calderon, who managed to win support for cutting pensions and raising taxes since taking office in December 2006. Mexico, the third-largest oil supplier to the U.S., needs the help of foreign and private companies to halt a decline in crude output and reserves, Calderon has said.

Importance: Calderon has been getting a lot of what he wants recently, so it is nice to see him stopped in certain areas even if stopping him is keeping the socialist mark upon Mexico.

Grade this post.

Hi Ho, Hi Ho it's Off to Work We Go

They are hardly the conquistadors that tapped open gold veins centuries ago, but the world's miners have once again descended upon Mexico in search of new sources of precious metals.

Drawn not only by rich gold and silver deposits, but also a stable and easy-to-navigate regulatory regime, the rush to Mexico by foreign mining firms pushed the total value of the country's mining production to a record $7.2-billion (U.S.) last year.

Compare that to just five years ago, when the value of production totalled just $2.3-billion.

Importance: Mexico is getting a lot of commerce from these miners. How long will this last? Where will all this extra cash go? We will see...

Grade this post.

Oil Ad

Mexican President Felipe Calderon is using national television ads to overcome opposition to his plan to open the state oil monopoly to foreign investment, saying the nation needs outside help to get to crude in deep waters.

Forty-six percent of Mexicans polled by Reforma newspaper this week said they opposed Calderon's initiative, which the government says is the only way Mexico can halt a decline in oil output and reserves.

``Mexico has a great treasure, a treasure buried deep under the sea,'' a narrator says in the ad, which began to air last night. ``We need to get to it.''

Petroleos Mexicanos, the state oil company, lacks money and the technology to explore in waters deeper than 5,000 meters, where most Mexican deposits are, according to a government study.

Full Story

Importance: Televised persuasion...sounds like propaganda in action to me...but perhaps I am too harsh. All told, it is an interesting tactic to win support for the President's directive; as for its effectiveness, that's open for debate. The ad seems to have created more questions than helped to bulster confidence in the people. Regardless, the fact that Pemex is in need of some turn around legislation is evident.

GRADE THIS POST!!!!!!!!!!!!

The following events may influence trading in Latin American local bonds and currencies today. Bond yields and exchange rates are from the previous session.

Chile: The government announced temporary tax cuts yesterday to stimulate the economy as drought and high energy prices threaten to slow growth and stoke inflation.

Colombia: Fitch Ratings affirmed its outlook on Colombia's debt yesterday at BB+, the highest non-investment grade, with a stable outlook.

Mexico: President Felipe Calderon announced an economic stimulus package yesterday worth 60 billion pesos ($5.6 billion) to help protect the nation from a slowdown in the U.S., its biggest trading partner.

Full Story

Importance: Latin America tries to prepare for economic stability. Mexico's peso rises slightly against the dollar. I suppose things could be worse...

GRADE THIS POST!!!!!!!!!!!!!!!

Assessment Complete

Nahuatl Revived

MEXICO CITY – Mexico City mayor Marcelo Ebrard wants all city employees, from hospital workers to bus drivers, to learn the Aztec language Nahuatl in an effort to revive the ancient tongue, the city government said Friday.

Leftist Ebrard, seen as a possible presidential candidate in 2012, presented his government's development plan this week translated for the first time into Nahuatl.

“This publication is not just a symbolic act, it is the first step to institutionalizing the use of Nahuatl in the government,” his office said a statement.

The next step will be offering Nahuatl classes to city government officials, including the mayor and his cabinet, and distributing booklets about indigenous culture to 300,000 public servants, said Rosa Marquez who runs the program.

Full Story

Importance: This press for learning the Aztec language is an interesting step for minority rights. Recently Mexico has been hit by a lot of bad press concerning its emphasis, or lack thereof, on human rights. Perhaps this is the first sign of a reversal of this trend.

GRADE THIS POST!!!!!!!!!!!!

New Drug Laws

Mexico's lower house of congress approved a softened version of President Felipe Calderon's anti- drug bill.

The 462-to-6 vote today came after lawmakers eliminated a clause that would allow police to search homes without a warrant in life-threatening situations. The modification lets ``citizens have a reform that helps them, not one that assaults them,'' said Ruth Zavaleta, speaker of Mexico's lower house and a member of the opposition Party of the Democratic Revolution.

The package is part of Calderon's efforts to combat organized crime and quell violence. It would allow lawyers to make oral arguments to speed up trials and would give police the right to record conversations to be used as evidence.

Read the whole article.

Importance: Mexico is still fighting the war on drugs, but it is good to see that the house of congress is thinking about the peoples rights while working on their problems.

Grade this post.

Transcontinental Calves

Mexico will partially lift its five-year long ban on live imports of Canadian beef and dairy calves in March, allowing females under 30 months to enter the country provided they come from herds where no instances of BSE have been detected, the Mexican agriculture ministry said on its website.

Enrique Cruz, Director-in-chief of the National Sanitation, Inoculation and Agrifood Quality Service (SENASICA) within the Ministry for Agriculture, Cattle, Rural Development, Fishing and Food (SAGARPA), said in a statement that lifting the ban for female calves would give Mexican farmers access to breeding stock that would help them boost milk production for the local market.

Cruz said a protocol signed between Mexico, the United States and Canada in January would allow the animals to pass through U.S. territory in transit. That agreement was reached after a meeting between Mexico's Agriculture Minister Alberto Cardenas and his Canadian counterpart Gerry Ritz.

Read the full article.

Importance: More good news for Mexico's trade. Since NAFTA has been worked with Mexico has been doing very well. Hopefully Mexico can continue to grow.

Grade this post.

A Greener Mexico

Within four years, Mexico wants to produce 25 percent of its electricity from renewable sources, the country's energy secretary said.

"The goal is that in 2012 renewable energy sources will account for more than a quarter of total capacity," said Georgina Kessel.

One of the Mexican government's priorities is to promote renewable energy as a means of ensuring the country's energy security, Spanish news agency EFE reported.

Read the whole article.

Importance: It's good Mexico is taking a step towards the gren side of life. When we run out of oil the countries that didn't think ahead are going to have some large problems to deal with.

Grade this post.

'Virtual' fence along U.S.-Mexico border delayed

The Bush administration's plan to outfit the U.S.-Mexico border with a "virtual" fence consisting of sensors, cameras, and drone aircraft is running into technical snags.

Federal officials told a congressional committee on Wednesday that the first phase of the project--consisting of about 100 miles near Yuma and Tuscon, Ariz., and El Paso, Texas--won't likely be completed until 2011, about three years later than expected, according to The Washington Post. The task is being overseen by the Department of Homeland Security and has been contracted out to Boeing.

For years, the Bush administration has been heralding the concept of a "high-tech" fence as a sophisticated, 21st-century way to help border patrol agents nab foreigners trying to sneak into the country--and supplement physical fences, which are also in the works. In 2006, it estimated that it would cost $7.6 billion to secure the entire 2,000-mile southern border. Critics, including Democrats in Congress, charge the effort has been wasteful and poorly executed so far, and civil libertarians have raised questions about privacy.

Full story here

Importance: This article concerns the implementation of a new high tech security border that would supposedly be less expensive and more efficient. It cannot be completed until 2011. Many have said it is a poorly resoned plan. Look here for future updates.

GRADE THIS POST!

UPDATE 2 ON POLLICE BOMBING

MEXICO CITY – Drug traffickers from outside Mexico City ordered the assassination of a top city police commander and contracted local cocaine distributors to carry out the botched bombing attempt early this month, authorities said Wednesday.

Mayor Marcelo Ebrard said in a TV interview that the drug hit was planned in retaliation for a series of police raids against drug cartel cells in the capital and the seizure of assault rifles, grenades and shoulder-fired rockets designed to penetrate armored vehicles.

Investigators don't know yet which drug cartel was behind the attack, the mayor said.

Both the Sinaloa cartel based in northern Mexico and the Gulf cartel that operates along the Mexico-Texas border are believed to have lost important operatives and weapons in the seizures, analysts and authorities have said.

Full story here

Importance: This is most likely the last story in this horrible situation. Finally, we find out that the attack was in response to numerous raids on drug cartels in Mexico City. Better yet, the attack was carried out by local cocaine dealers. The alleged men mentioned in the previous update were likely the ones who carried out the attack. However, the men behind the attack have not been identified and it is likely they will not be identified any time in the near future.

GRADE THIS POST!

Smoking Ban

The news for smokers was bad. The question was how bad.

Smokers and restaurateurs and other business owners in Mexico City on Wednesday were debating the ramifications of not one but two groundbreaking laws seeking to curb smoking.

Some were scratching their heads over which they would have to obey, and many others expressed skepticism that either would be effectively enforced.

"I'm sure that neither . . . is going to succeed," said Andres Romero Olivares, a 47-year-old accountant, who saw the restrictions as the wrong solution to the nation's health woes.

On Tuesday, the Mexican Senate passed nationwide restrictions on smoking in workplaces, restaurants, bars and other public enclosures, requiring stiff fines for violations and possible 36-hour jail stints for smokers who refuse to comply. That measure, already passed by Congress' lower house, is expected to be signed into law by President Felipe Calderon.

The same day, Mexico City's legislative assembly approved even tougher rules for the capital that would ban indoor smoking in public places. The law tightened restrictions passed last fall, which had allowed bars and restaurants to set aside sections for smokers.


Full Story


Importance: I find it interesting that this law is coming into effect just as the judicial system is being overhauled in order to cut down on the number of people being held in jail for more mundane reasons. More legal confusion and delegation of police activity cannot be good for Mexico with its corrupt system being revamped and a rather unsuccessful war on drugs going on. But I suppose legislators need to feel as though they are getting something accomplished...

GRADE THIS POST!!!!!!!!!!!

New Justice System

Mexican legislators are expected today to overhaul the country's famously ineffective justice system, implementing public trials nationwide while turning up the heat on organized crime.

The long-awaited "justice reform" bill — the result of several years of fierce debate among security experts, academics and human rights activists — would amend the constitution to include the presumption of innocence and other guarantees. It would also provide alternatives to jail for minor crimes, in an attempt to reduce overcrowding in Mexican prisons.

Many of the new rights, however, would not apply to suspected members of the criminal mafias, who could be held for up to 40 days without charges. The bill would also insert in the constitution a liberal definition of "organized crime" as "a group of three or more people formed with the intention of repeatedly breaking the law."

The bill's supporters say such tough measures are needed to combat the narcotics gangs, whose bloody feuds killed more than 2,000 people last year, including dozens of police and soldiers.

"In this moment when organized crime is tearing Mexico apart, we can't protect the criminals," said Juan Francisco Rivera, a legislator from northern Nuevo Leon state, one of the cartels' bloodiest battlegrounds. "We have to give the police and security agents tools so they can take immediate action."

Full Story

Importance: So Mexico is changing their justice system to one similar to the U.S. which will operate under innocent until proven guilty, as opposed to its current system which runs more as guilty until proven innocent. The question is whether the proposed reform will help cut down on organized crime, as many hope it will, or push Mexico closer to becoming a police state with the amount of leeway it is giving police and military in times of "imminent danger."

GRADE THIS POST!!!!!!!!

UPDATE ON POLICE BOMBING

MEXICO CITY (AP) — Police are holding four suspects in connection with an explosion that killed a man as he apparently tried to plant a bomb targeting a police commander, Mexico City's top prosecutor said Monday.

The four were placed under house arrest over the weekend, said Mexico City Attorney General Rodolfo Felix Cardenas. One of the detainees is Tania Vazquez, 22, who was wounded in the Feb. 15 blast after surveillance cameras captured her walking with the dead man. She is being held at a local hospital where she is undergoing treatment for burns.

Cardenas did not identify the other three suspects, but an employee of the prosecutor's office said they are believed to be minor drug dealers.

Full story here

Importance: This is a follow up on a story last week about somone bombing a police commander. Four suspects have been put on house arrest. It was my personal theory that the bombing had something to do with drugs and it proved to be true. This just gives more evidence that most crime in Mexico is traced back to the drug war. Look here for future updates on the case.

GRADE THIS POST!

Private Investment for Pemex?

Oil output in Mexico, the third-biggest supplier to the US, is declining, and the state company Petroleos Mexicanos (Pemex) lacks the technology to explore for new reserves. For many the answer seems simple: more capital.

But now that senators have begun debating ways to attain that capital – a top priority of President Felipe Calderón – resistance has mounted, particularly to the idea to allowing in private enterprise.

In no place is there more opposition than along the industrial corridor in this resource-rich, steamy stretch of Veracruz State. "This oil is from here, and it belongs to us," says Francisco Lopez Martinez, who inspected oil barges at Pemex for 36 years before retiring this year.

Pemex has been Mexico's sacred cow since foreign companies were kicked out in 1938. Since then the Constitution has barred private ownership. Pemex is a source of national pride, but it's been crippled by inadequate funding, corruption, and inefficiency.

High oil prices have helped mask the decline, says Amy Myers Jaffe, an energy analyst at the James A. Baker III Institute at Rice University in Houston. Pemex generated revenue of about $100 billion last year. But the situation, under the surface, is dire.

Full Story

Importance: The drop in oil output is bad for Mexico; Pemex supplies around 40% of the national budget, so losing the company does not appear to be an option. Mexicans are weary of foreign investment, though, because they feel it will take jobs away from them. Something will have to be done, however, to get the company the needed funding to investing in more technology. The company has also been subject to claims of corruption, indicating yet another instance when corruption has hindered Mexico's strides toward increasing development and democracy.

GRADE THIS POST!!!!!!!!

Assessment Complete

Mexico offers reward for information in deadly blast

MEXICO CITY: Police have offered a US$9,300 (€6,300) reward for information leading to the arrest of additional suspects in the explosion of a homemade bomb allegedly intended for a police commander in Mexico City.

The bomb exploded last Friday just two blocks from police headquarters, killing the man believed to be carrying it and injuring a woman who was captured on videotape with him. The woman, 22-year-old Tania Vazquez, is being treated as a suspect.

Police are seeking "reliable information" that results in more arrests, the capital's police department said in a news release Wednesday night.

Authorities are seeking six additional suspects, according to Mexico City Attorney General Rodolfo Felix Cardenas, who is in charge of the investigation.

Full story here

Importance: In this situation, autorities are basically offering a reward for information leading to the arrest of the person behind the homemade bombs. This could prove to be a problem if they the problem is not taken well care of.

GRADE THIS POST!

Mexico Sweetens the U.S.

MEXICO CITY, Feb 20 (Reuters) - Mexico sugar producers said on Wednesday they plan to export 750,000 tonnes of sugar mostly to the United States over the next three months to fill demand after a blast destroyed a major U.S. sugar refinery.


The exports take advantage of new trade rules that lifted all barriers to free trade in sweeteners on Jan. 1 between Mexico and the United States, one of the last protected industries under the 1994 North American Free Trade Agreement, or NAFTA.

U.S. sugar producers fear an increase in Mexican sugar imports will crush U.S. prices but Mexico says they can fill demand after last week's fire and explosion in a Georgia sugar refinery owned by Imperial Sugar.

Read the whole article.

Importance: Mexico is taking advantage of its new freedoms, which is a great thing. Since they seem to want to intergrate our economies they are moving in t right direction.

Grade this post.