Carstens Won’t Rule Out Keeping Mexico Rates Low After Fed Move

April 20, 2015


4/19/2015 Bloomberg Business

Mexican central bank Governor Agustin Carstens doesn’t rule out keeping interest rates at a record low even after the Federal Reserve begins to tighten, given slow growth and inflation in Latin America’s second-largest economy.

He also said the country will benefit from faster growth in the U.S., and that the peso is undervalued as investors focus on the outlook for higher U.S. rates rather than Mexico’s economic potential.

“All options are open” for monetary policy, Carstens said Sunday in an interview in Washington after the spring meetings of the International Monetary Fund and World Bank.

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NAFTA, Free Trade and Mexico’s Drug War

April 17, 2015

InSightLogo_main_24bit4/7/2015 InSight Crime

Without providing the slightest evidence, the habitual enemies of free trade have launched a new campaign of lies, insisting that the North American Free Trade Agreement (NAFTA) and “neoliberal” policies in general — which according to them the United States forced Mexico to adopt — are the causes of drug violence.

I read an excerpt from Carmen Boullosa and Mike Wallace’s soon-to-be published book “A Narco History: How the United States andMexico created the ‘Mexican war against drugs.'” The book’s thesis is that NAFTA opened the US’s door to drugs from Mexico, mixing them with legal trade, which is false.

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Mexico’s Manufacturing Sector Continues to Grow

April 10, 2015

Forbes, 4/8/2015

manufacutiring

Summary:

Mexico’s economy has performed well relative to other major Latin American economies in recent years, largely because of its thriving manufacturing sector. Unlike Brazil and Argentina, whose manufacturing sectors are slumping, Mexico has continued to see solid growth because of its integration with and dependence on the U.S. market. Although low global oil prices will put pressure on Mexico’s economy, the performance of the manufacturing sector — especially in high-end manufacturing — will be a key driver of Mexico’s economic growth this year and beyond.

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Mexican Growers Offer 15 Pct in Baja Farm Strike

March 31, 2015

The New York Times, 3/30/2015

farm workersMEXICO CITY — Export-oriented commercial farms in Mexico’s Baja California state say they have offered farm workers a 15-percent wage increase to end a two-week-old strike.

But leaders of the farmworkers called the offer unacceptable, and said they want assured benefits, higher wages and an end to abuses.

The strike by an estimated 50,000 farmworkers has featured intermittent blockages of the main north-south highway in Baja, confrontations with police and the arrest of dozens of strike supporters.

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Mexico Easing U.S. Poultry Ban Shows Ebbing Threat of Flu

March 25, 2015

Bloomberg Business, 3/24/2015

mexico-usa-flag-montageMexico’s move to start allowing some imports of American chicken and turkey from states with commercial bird-flu cases signals that the disease’s threat to U.S. poultry exports is starting to subside.

Mexico will accept shipments of some poultry from the states if the products are destined for further domestic processing, according to an update Tuesday on the website for the U.S. Department of Agriculture’s Food Safety and Inspection Service. Other nations may follow suit, according to Farha Aslam, a New York-based analyst for Stephens Inc.

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Mexico to Sell Dollars to Support Peso

March 11, 2015

By Anthony Harrup, Wall Street Journal 3/11/15

dollarsThe Bank of Mexico will sell additional dollars to support the peso, which fell this week to its weakest level to date against the U.S. dollar, the foreign exchange commission said on Wednesday.

For the next three months, the central bank will offer $52 million a day at auctions, in addition to the $200 million it sells on days when the peso weakens 1.5% from the previous session’s fixing.

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Heineken investing $480 mln to build brewery in Mexico

March 11, 2015

Reuters, 3/10/15

heinekenDutch brewer Heineken said on Tuesday it will invest 7.5 billion Mexican pesos ($480 million) to build a brewery in Mexico to supply U.S. and Mexican markets.

The brewery in the northern state of Chihuahua will produce five million hectoliters (132 million U.S. gallons) of beer per year, said Marc Busain, managing director of Heineken’sMexico unit Cuauhtemoc Moctezuma, but that could be expanded.

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