Thursday, January 31, 2008
The Forever Years War
Gun battles between federal forces and drug-cartel members carrying rocket-propelled-grenade launchers have taken place over the past two weeks in border towns like Río Bravo and Tijuana, with deadly results.
Yet what is happening is less a war than a sustained federal intervention in states where for decades corrupt municipal police officers and drug gangs have worked together in relative peace, officials say. The federal forces are not only hunting cartel leaders, but also going after their crews of gunslingers, like Gulf Cartel guards known as the Zetas, who terrorize the towns they control.
Read the whole article.
Importance: This article is really cool if you think about it. If you compare Mexico's drug war to the U.S.'s this article shows exactly how two countries so close with the same problem handle the problem in two completly different ways. It's also interesting that neither one seems to be fixing the problem...
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The Fence
Traffic normal at San Diego border despite new crossing rules
Thursday was the first day U.S. and Canadian citizens 19 years and older had to show documents proving citizenship. Passports work, as do "trusted traveler" cards that have been issued to frequent crossers.
Seeing US Slowdown, Mexico Cuts Growth
The Treasury Department said it was lowering its forecast for Mexico's 2008 economic growth to 2.8 percent from 3.7 percent — a 24 percent drop.
"It is expected that the prevalent international economic scenario in 2008 will be less favorable for Mexico than what was anticipated," the department said in a report posted on its Web site.
More than any other country in Latin America, Mexico's economic fate is tied to the U.S., its partner in the North American Free Trade Agreement. Mexico sends more than 80 percent of its exports to the U.S., which is also Mexico's largest source of direct foreign investment and remittances.
Full story...here
Importance: This shows that Mexico relies heavily on the U.S. in terms of economic growth. When our economy drops, Mexico's does as well. This coupled with the economic problem of farming and farmer's income has many wondering when the Mexican economy will get back on track.
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Prepaid Television
Prepaid cards for Sky Mexico, Televisa's satellite service in partnership with DirecTV Group Inc. (DTV), "use the same payment systems as cell phones, and you only pay for what you use," Televisa said Thursday in a press release.
The idea comes at a time when the country's telecom and cable companies are implementing "triple play" - the bundling of Internet, phone and video on the same network.
Televisa unit Empresas Cablevision SAB (CABLE.MX) is among cable companies that have started offering phone service, while the country's biggest fixed-line phone company, Telefonos de Mexico SAB (TMX), or Telmex, plans to start selling video this year.
Marco Rojas, director of marketing at Sky Mexico, said in a telephone interview that the rollout of prepaid television was more than partly motivated by the prospects of increased competition.
Farmers clog Mexico City to protest for corn tariffs
"No corn, no country" was the byword of the protest plastered in signs on tractors and buses, as the angry farmers, some of them leading herds of cattle through the streets, demanded equal treatment with farmers in the United States and Canada.
While it was mostly peaceful, there was some tension late Wednesday when a column of slow-moving tractors ground to a reluctant halt before a phalanx of anti-riot police that barred access
to the Zocalo, the city's main square.
Some 1,500 police have fanned out across the city to prevent any unrest stemming from the protest, as farmers from across the country have made their way here, some on foot for 1,600 kilometers (1,000 miles), since January 18.
A provision of the North American Free Trade Agreement (NAFTA) lifting tariffs on corn -- Mexico's staple food -- kicked in on January 1, 14 years after the agreement between the three neighbors came into being.
Full story... here
Importance: This article brings to life the disadvantages that farmers have to deal with via NAFTA. Mexican farmers can no longer live off their own crops and their income has been gradually been decreasing since the birth of of the agreement. This protest clearly shows that the farmers are significantly upset.
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Wednesday, January 30, 2008
The American Mexico
Mexican Maize
Nevertheless many Mexicans are no more enthusiastic about the treaty than Americans are. Opposition politicians, from both the centre-left Party of the Democratic Revolution and the formerly ruling Institutional Revolutionary Party, argue that NAFTA should be re-negotiated. Peasant farmers are to stage a demonstration in Mexico City on January 31st to which they hope to attract 100,000 people (although, as is customary, many of these will be bused in and paid to attend).
In practice, little changed on January 1st. Tariffs on maize have gradually been dropping since 1994 (when they stood at over 200%). Nearly all maize imports already entered tariff-free under government import quotas. Most of the imports are of yellow corn, used to feed livestock, while Mexico produces mainly white corn. Even so, without cheap imports Mexicans would pay more for their daily tortillas. They were reminded of that a year ago when a temporary shortfall in imports combined with distribution snags to cause the price of tortillas to soar.
Read Full Article
Importance: Once again, Mexico is facing problems with poor competition leading to the development of monopolies. Though free trade is ultimately beneficial, small scale farmers are going to have trouble when prices of maize fall.
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Monday, January 28, 2008
Police Chief Arrested in Drug Case
Mexico arrested two alleged drug cartel enforcers over the weekend, including a purported hit man accused of threatening officials and bribing police, and a suspect in the 1993 slaying of a Mexican cardinal.
Former local police chief Hector Izar Castro was detained on Sunday in the north-central state of San Luis Potosi on weapons, armed robbery and drug charges, federal police spokesman Edgar Millan said.
Police said Izar Castro had a rifle, pistols and cocaine in his possession at the time of his arrest, as well as three wooden clubs marked with the letter "Z" -- apparently signifying the Zetas, the gang of Gulf cartel hit men for whom he allegedly worked.
Late on Saturday, the commander of an army base in Tijuana announced that another alleged drug gunman had been collared: Alfredo Araujo Avila, also known as "Popeye," who allegedly worked for the Arellano Felix drug cartel as a hit man for more than two decades.
Araujo Avila is suspected of participating in the slaying of Roman Catholic Cardinal Juan Jesus Posadas Ocampo, who was riddled with bullets on May 24, 1993, while he sat in his car at the airport in the city of Guadalajara, General German Redondo told reporters.
Full article available here
Importance: Mexico seems to have so much drug violence and corruption that the arrest of two offenders appears to be a mere drop in the bucket; however, these arrests are of import as they reveal that the president's 'crack down' on crime is making headway. They give the hope that his plans will not be as futile as his predecessor's.
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Sunday, January 27, 2008
Thursday, January 24, 2008
Mexico announces squad for Beijing Olympics qualifier
UPDATE 2-INTERVIEW-Mexico Senate sees April energy law proposal
After a year consulting with Mexican and foreign experts, lawmakers from all parties agree the oil sector needs a shake-up to ensure Mexico's future as a world class oil exporter, Sen. Ruben Camarillo told Reuters in an interview Wednesday evening.
"I estimate it should be during April," Camarillo said, referring to when the senate committee would have a draft proposal ready to submit. Some lawmakers had seen a bill ready by end-February but most feel more time is needed.
The reform attempt will be conservative President Felipe Calderon's most ambitious yet since he took office a year ago and shook up Mexico's pension, fiscal and justice systems.
Full story...here
Importance: This article plainly states that there will be a proposal in April concerning energy reforms. It also concerns the halting of a major oil monopoly, Pemex. Mexico will likely gain more oil from the Gulf of Mexico.
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Mexican Farmers in Trouble
Mexico anti-drug official says target of hit men
Mexico Seeks U.S. Aid on Drug War
Turf Wars Continue
Others have been less fortunate. Since June, at least four Cuban-Americans, including Reyna's brother Maximiliano, have been shot dead on Cancun's glitzy boulevards in gangland-style hits. Mexican officials allege that these killings, and those of at least five Mexicans, stem from what they say is a turf war over lucrative human smuggling routes of Cubans via Mexico to the United States.
The blood being spilled in broad daylight in Mexico's most popular international tourist spot has raised the pressure on a police force already struggling against heavily armed drug cartels.
Read the full story
Importance: This article shows that the U.S. may have immigration problems but, Mexico also has a severe problem. It will be interesting to see how how the two governments handle the situation.
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Military Replace Police
In Nuevo Laredo, soldiers surrounded police headquarters at 8 a.m. and ordered officers to remain inside. Federal troops conducted a similar operation in Tijuana last January, at the beginning of an offensive against Mexico's drug cartels and their allies in the police.
During the first 14 months of his rule, President Felipe Calderon has sent federal troops to at least half a dozen states, including Michoacan in the south and Veracruz on the Gulf. Calderon has vowed to break the power of the traffickers, who wield wide influence over local authorities and intimidate local news media.
At least two drug-trafficking organizations are fighting for control of Nuevo Laredo and its border crossings, a lucrative source of income for smugglers. President Vicente Fox, Calderon's predecessor, sent army troops there in 2005.
Read the rest of the story
Importance: The article reveals Calderon's efforts at breaking down the drug trade in Mexico as well as unraveling the layers of police corruption. However, similar efforts have been made in the past, and things have not changed. Whether the president's attempts will be effective remains to be seen.
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Wednesday, January 23, 2008
Investigation of Possible Phone Monopoly
The Federal Competition Commission, without naming any company, said it will investigate if there was any "substantial power" and "real competition" in various fixed-line long distance and local telephone markets.
Telmex, a former state monopoly that Slim bought in a 1990 privatization, has around 90 percent of Mexico's 20 million fixed lines and was declared "dominant" several years ago by antitrust regulators.
Slim, reckoned by some to be the world's richest person, overturned that ruling in Mexican courts.
Full story here
Importance: This investigation reveals Mexican attempts to reform some of the corruption which seems to be inherent in its government and economy.
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Monday, January 21, 2008
Peso Falls
Mexico's peso fell the most in 10 weeks amid falling global stock prices and mounting speculation the world economy is slowing.
The peso weakened 0.75 percent to 10.9858 per dollar at 11:44 a.m. New York time from 10.9045 on Jan. 18. The currency's decline was the largest since Nov. 9.
Rising unemployment and a contraction in manufacturing output in the U.S. have reinforced speculation that the world's largest economy is slipping into recession. The European economy may be starting to suffer from the U.S. subprime mortgage slump as industrial production shrinks and investor confidence wanes.
Slowing global growth threatens to trim consumer demand for Mexican exports, accounting for about 30 percent of gross domestic product.
Importance: The drop in the Mexican peso is one of many possible economic indications of a world economic "slow-down," apparently instigated by the recessing of the U.S.'s economy. Now in addition to the increased crime, President Calderon must contend with fostering economic stability and growth.
Sunday, January 20, 2008
Friday, January 18, 2008
Schlumberger Moved 17 Rigs Into Southern Mexico In 2nd Half 2007
Large start-up costs at two projects eroded Schlumberger's operating margins for Latin America in general in the fourth quarter, Schlumberger Chairman and Chief Executive Andrew Gould said during a Friday conference call.
Schlumberger is a major supplier of equipment and services to Mexico's state- owned oil monopoly Petroleos Mexicanos, or Pemex. In 2007 Schlumberger and construction company ICA Fluor won a $1.4 billion contract to develop the Chicontepec field, which stretches across the states of Veracruz and Puebla.
Full story...here
Kidnap victims found dead after Mexico gunfight
The victims, all male, were blindfolded and gagged and had been shot in the head. The authorities in the city of Tijuana, near the US border, said the men had probably been abducted for ransom, or picked up for association with a rival gang.
The three-hour battle between a handful of gunmen in a house and about 100 soldiers and police outside has highlighted fears that a military-led offensive aimed at quelling a gruesome turf war between drug cartels is turning into a more general conflict.
Soldiers and state and local police were sent in to help control the gunfight, which began when federal agents prepared to raid a house police now say was a shelter for a cell of the Arellano Félix drug cartel.
Full story...here
Importance: This is just news that reflects the society of many Mexican cities. It is a representation of the frequent rebellions in Mexico, especially near the border.
Marijuana, Guns, and Rocks
US Attorney General Michael Mukasey said Mexican police who seized arms could use the system to notify the US who would then target the dealers.
Mexico has been struggling to deal with heavily-armed drug traffickers.
It has complained that its northern neighbour is not doing enough to stop the flow of illegal arms into Mexico.
"What happens is that there is organised rock-throwing to divert border guards, who then become involved in whatever exchanges they're involved in, then you get a bunch of backpackers running across the border with backpacks full of marijuana," Mr Mukasey said.
Read this article.
This article just goes to show that like at the beggining of the revolution throwing things at soldiers always gets the job done.
Wednesday, January 16, 2008
Mexico's Calderon places ally in key reform post
Economic Freedom
Mexico scores relatively well in business freedom, fiscal freedom, trade freedom, government size, property rights, and financial freedom. Commercial operations are becoming more streamlined, and business formation is efficient. Income and corporate tax rates are moderate, and overall tax revenue is low as a percentage of GDP. Government expenditures are fairly low.
Tuesday, January 15, 2008
Attempt at Oil Reform
This is a worry for both Mexico and the world. Although Mexico contains less than 1% of the world's proven oil reserves, it is the sixth-largest producer. Its output of 3.1m b/d is well above that of Venezuela or Kuwait. And although oil no longer dominates the Mexican economy—even at recent high prices it provided 16% of exports in 2006, down from 68% in 1982—it lubricates the public finances, contributing nearly 40% of federal revenues.
The Senate's energy committee is holding a “private, technical debate” on how to do this, according to Rubén Camarillo, a senator from Mr Calderón's centre-right National Action Party. The purpose is to try to reach an all-party consensus by February. So far there is “agreement about what needs to be done, but not how to do it,” says Mr Camarillo.
Sunday, January 13, 2008
Mexico News! (of sorts...)
A few interesting stories from Mexico this past week:
Writer and poet Andrés Henestrosa, a Zapotec Indian who defended and promoted his native language, died Thursday after a months-long battle with pneumonia. He was 101. Henestrosa, who was born in Oaxaca state and didn't learn Spanish until he was 15, wrote a Zapotec-Spanish dictionary in 1936.
A 10-year-old Mexican boy dreaded returning to school after Christmas break, so he glued his hand to his bed. Sandra Palacios spent nearly two hours Monday trying to free her son Diego's hand with water, oil and nail polish remover before calling authorities to get the industrial glue off, Police Chief Jorge Camacho said from outside Monterrey. Paramedics managed to unstick him in time for class; his hand was fine.
Scientists using improved methods of analyzing the chemistry of ancient soils have detected where a large marketplace stood 1,500 years ago in the Maya city of Chunchucmil on the Yucatan Peninsula. The findings, archaeologists say, are some of the first strong evidence that the Maya civilization, at least in places and at certain times, had a market economy similar in some respects to societies today.
(courtesy SignOnSanDiego.com)
These short headliners serve mostly to bring us up to date with current happenings in Mexico.