Texas Gov. Abbott to Visit Mexico to Mend Fences, Talk Trade Amid Strained Ties

8/25/2015 The Dallas Morning News

Greg_Abbott_by_Gage_SkidmoreGov. Greg Abbott is expected to visit Mexico City on Labor Day weekend, his first trip abroad as governor, and will lead a delegation of Texans eager to move forward amid turbulent times between once-solid neighbors, The Dallas Morning News has learned.

The agenda is still being fleshed out for the first trip to Mexico by a Texas governor since 2007, but people familiar with the matter say the visit is aimed at mending fences and underscoring the economic, cultural and political integration between Texas and its southern neighbor, an important trading partner.

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Mexican Economy Posts Moderate Advance

8/20/15 The Wall Street Journal

1363368470_a0fdfdf230_zMexico’s economy advanced at a moderate pace in the second quarter as gains in services compensated for a sluggish industrial sector that was held back by a decline in oil and gas production.

Gross domestic product expanded 2.2% from the second quarter of 2014, and was up 0.5% seasonally adjusted from the first quarter, the National Statistics Institute reported Thursday. The increase from the first quarter translates into an annualized rate of 2%, up from an annualized 1.7% increase in the first quarter.

The expansion from a year before was in line with the 2.2% median estimate of 12 economists polled by The Wall Street Journal, but marked a slowdown from the first quarter, when output of goods and services rose 2.6% from a year before.

Services in the April-June period rose 3.1% from a year before, and industrial production rose 0.5% as a drop in oil and gas production partially offset a 3% rise in manufacturing output.

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Nissan In Mexico: Japanese Automaker Exports 5 Millionth Car From Its Mexican Manufacturing Base

8/18/2015 International Business Times

To give you a sense of just how fast Mexico is becoming a major automotive manufacturing hub, consider this: For its first three decades of sending its Mexican-made cars abroad, Nissan exported roughly 33,000 cars and trucks every year. But since 2002, that number has topped 307,000 units annually, a nearly tenfold average annual increase.

On Monday, Nissan announced that a red NP300 pickup truck became its 5 millionth Mexican-made export since the Japanese automaker began sending its vehicles from Mexico to the United States in 1972. That’s up from 4 million in 2013, which means the export pace has accelerated to about a half-million cars annually in the past two years.

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Mexico and Colombia join ‘fragile five’ emerging markets

8/13/2015 Financial Times

120px-Philippine-stock-market-boardColombia and Mexico are now members of the “fragile five” group of emerging market nations, replacing India and Brazil, according to analysis by JPMorgan Asset Management.

The Latin American duo, alongside Turkey, South Africa and Indonesia, are seen as the countries most overdependent on potentially skittish foreign investment flows.

The original “fragile five” were worst hit during the taper tantrum of 2013, when foreign investors fled emerging markets. The vulnerability of four of the five (South Africa, Turkey, India and Indonesia, but not Brazil) had been identified by JPMAM before the sell off.

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Global economic slowdown continues to weaken LatAm economies

8/10/15 Daily Times

latin_americaMEXICO CITY: Global economic slowdown and weak economic recovery in the United States continue to threaten Latin American countries, raising the risks of capital flight and currency devaluation.According to the Economic Survey of Latin America and the Caribbean 2015 published recently by the Economic Commission for Latin America and the Caribbean (ECLAC), the region’s currencies have tended to weaken against the US dollar over the last year. The ECLAC attributed this depression to the withdrawal or slowing down of stimulus programs, the fall in prices of basic goods, the lower availability of capital in international markets, and the overall regional economic slowdown. “We cannot see the light at the end of the tunnel,”Alicia Giron, a researcher at the Institute of Economic Investigations of the National Autonomous University of Mexico, told Xinhua.

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In Mexico, violence chokes both local business and Coke, Pepsi

07/20/15 Fortune

guerreroGuerrero is without doubt the most troubled state in Mexico, as police struggle to keep gangs from preying on both residents and employees of major multinationals. Nestled in a back table at a busy restaurant near the main plaza of Iguala, near Mexico’s southern Pacific coast, Andres, a middle-aged resident who lives on the outskirts of the city, watches the lunch crowd—businessmen in dress shirts, women in high heels and dresses. On the street, Federal Police pickups ferrying machine-gun toting officers rumble by, and a red Coca-Cola van makes pick-ups and drop-offs at a local convenience store.

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EVENT TOMORROW! Inequality in Mexico

social classWHEN: TOMORROW, July 7, 9:00-11:00am

WHERE: 5th Floor Conference Room, Woodrow Wilson Center, Washington, DC

Click here to RSVP.

Mexico’s economic inequality has inhibited the country’s economic growth and slowed the potential of its social and human capital. And extreme inequality has worsened over the last 20 years, with economic elites capturing most of the benefits of growth. The political and economic implications are huge.

Oxfam Mexico recently issued a study on Mexico’s inequality and its policy implications, and the study’s findings will be presented and discussed at this forum on July 7, 9-11am. The study was authored by Gerardo Esquivel, professor and researcher at the Center for Economic Studies in the Colegio de Mexico.

Speakers

Ricardo Fuentes-Nieva
Executive Director, Oxfam Mexico

Marjorie Wood
Senior Associate, Institute for Policy Studies and Managing Editor, Inequality.org

Moderator

Duncan Wood
Director, Mexico Institute, Wilson Center

Click here to RSVP.