Priorities for Mexico’s New U.S. Ambassador

4/14/2016 Forbes

By Duncan Wood and Viridiana Rios

forbesMexico has named their new ambassador to the United States, Carlos Manuel Sada Solana. The priority of the new ambassador is clear: to represent Mexico in a more constructive and positive manner, especially to the American people and the U.S. Congress, and to identify the Representatives and Senators that can have an influence on shaping such a positive image. This will be important not only in the context of this year’s presidential election, but also for the long-term health of the bilateral relationship.

The principal task of Ambassador Carlos Sada Solana should not be to respond in a direct manner to the current anti-Mexico discourse that is rampant during this electoral period, but rather to address this rhetoric in a strategic fashion. The importance of Mexico’s relationship with the United States should be emphasized along with the significant achievements that Mexico has had in recent years. This includes American endorsement of the reforms, the creation of the High Level Economic Dialogue (HLED or DEAN in Spanish), the development of intelligence cooperation, as well as bilateral efforts in energy, climate change, organized crime, and migration.

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Depressed Energy Prices Cause Decline in U.S.-Mexico Trade


2/23/2016 Forbes.com

By Christopher Wilson, Deputy Director, Mexico Institute

forbesFrom 2009-2014, U.S.-Mexico trade skyrocketed. Bilateral trade grew 75%, faster than U.S. trade with any other major trading partner, including China (61%), and importantly, both imports and exports were growing rapidly. In 2015, trade growth came to a screeching halt, though strong fundamentals suggest this may be more of a temporary blip than a new trajectory.

The Census Bureau recently released U.S. merchandise trade statistics for 2015, and though Mexico is still the United States’ second largest export market and third largest overall trading partner, for the first time since the economic crisis of 2008-2009, U.S.-Mexico trade declined from the previous year’s level. Interestingly, as shown in the graph below, U.S.-Canada trade dropped sharply in 2015, allowing China to become the United States’ top trading partner. In 2014, the two countries traded $534.3 billion, but in 2015 that number fell to $531.1, a decline of some $3.2 billion dollars. U.S. imports from Mexico basically held steady, growing from $294.1 to $294.7 billion, although this apparent stagnation masks multiple underlying trends. Exports, on the other hand, dropped some $3.8 billion. This brief analysis examines recent trends in bilateral trade and their implications for the future of U.S. and Mexican economies.

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Carlos Slim Praises Mexican Telecom Reform Despite Challenge To His Number One Billionaire Status

carlos slimForbes, 3/18/2013

Tycoon Carlos Slim, who is in danger of losing his title as the world’s richest man,  praised the new monopoly-busting telecom legislation proposed by the Mexican government despite the fact that it has significantly reduced his net worth.

“This telecommunications law addresses the importance of broadband and of having more penetration…   Therefore, without a doubt,  it coincides with everything this commission has sought: universal service, better prices, higher speeds and convergence,”  Slim said  following the  inauguration of the Seventh meeting of the United Nations Broadband Commission for Digital Development in Mexico City March 17.  It was the first time Slim personally addressed the bill since it was proposed on March 11.

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Weekly News Summary: March 8th

Coffee by Flikr user samrevelThe Mexico Institute’s “Weekly News Summary,” released every Friday afternoon summarizes the week’s most prominent Mexico headlines published in the English-language press, as well as the most engaging opinion pieces by Mexican columnists.

What the English-language press had to say…

At its national assembly last Saturday, PRI members voted to end the party’s opposition to constitutional changes that would allow increased private participation in the oil sector, and reversed their previous position on the application of value added tax (IVA) to food and medicine. Leaders of the three main political parties continued to work on a “game-changing” telecommunications reform that is expected to shake up a highly monopolized sector of the Mexican economy. The Miami Herald’s Andres Oppenheimer addressed the recent optimism surrounding the Mexican economy, pointing out that many Mexicans remain skeptical. TIME’s Tim Padgett echoed the sentiment, drawing a parallel between current headlines labeling Mexico “the New China” or “the Aztec Tiger” and similar hype preceding Mexico’s 1994 peso crisis.

Following the excitement of last week’s arrest of Elba Esther Gordillo, journalists began focusing more closely on Peña Nieto’s education reform and the much-needed changes to the country’s lagging public education system. Carlos Slim topped the Forbes billionaire rankings for a fourth consecutive year, while drug kingpin Joaquin “El Chapo” Guzman was left out. The Christian Science Monitor reported Slim’s large share over the telecommunications sector has kept broadband connection costs high, and internet connectivity rates low, compared to the rest of Latin America. Also this week, Mexico’s Supreme Court ruled two common anti-gay words constitute hate speech and are not protected under freedom of expression.

Continue reading “Weekly News Summary: March 8th”

Mexican Billionaires Have Strong Year, With 18.4% Increase In Wealth

Mexican pesoForbes, 3/7/2013

The combined net worth of Mexico’s billionaires reached $148.5 billion, an increase of 18.4% from the previous year’s total of  $125.1 billion.  Based on the new Forbes Billionaire ranking’s data,  these gains slightly outpaced the growth in the amount of wealth held by the entire 2013 billionaire list, which after adding 210 new billionaires,  grew by 17.4% from $4.6 to $5.4 trillion.

The largest contributing factor to the leap in total wealth held by the super-rich in Mexico  is the addition of five new-comers and two comebacks to the rankings. The new billionaires are Eva Gonda Rivera (Femsa) ,  Rufino Vigil Gonzalez (Industrias CH), Jose and Francisco Calderon Rojas (Coca-Cola Femsa), Max Michel Suberville (Coca-Cola Femsa) and Juan Gallardo Thurlow (Cultiba). After having fallen bellow the 1 billion benchmark a few years ago,  Maria Asuncion Aramburuzabala (Grupo Modelo) and Alfredo Harp Helu (Banamex) are back in the rankings. The removal of drug kingpin Joaquin El Chapo Guzman from this year’s list and the 2012 death of Roberto Gonzalez Barrera brings the total of Mexican billionaires to 15, up from 10 the previous year.

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Carlos Slim And Mexico’s Digital Divide

carlos slimFronteras, 3/6/2013

Around 17 percent of individuals can access the Internet in their homes. For an economy of its size, this digital divide is stark among its neighbors in the region. In Brazil, the region’s largest economy, 38 percent can access internet from their home. The name Carlos Slim might be fresh on American minds — he was just named by Forbes the richest person on the planet. And critics claim the main source of his exuberant $73 billion fortune is a large factor in the Mexico digital divide.

A headline to think about: If Billionaire Carlos Slim Were a Country, He’d Be the 8th Richest in Latin America. His fortune is based in telecommunication. He owns the monopoly América Móvil (Telmex), which in 2012, it still controlled 80 percent of Mexico’s landlines and 75 percent of its broadband connections.

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Forbes drops drug lord Joaquin ‘El Chapo’ Guzman from billionaires list

Joaquín "El Chapo" Guzmán
Joaquín “El Chapo” Guzmán

CNN, 3/4/2013

Fortunes forever rise and fall, but perhaps none so fast as those of drug lords. On Monday, Forbes magazine released its annual list of the world’s richest people, and for the first time since 2009, Joaquin “El Chapo” Guzman did not make the cut.

Guzman is the boss of the Sinaloa cartel, one of Mexico’s most powerful drug trafficking operations. His nickname, which means “shorty,” matches his 5-foot-6-inch frame, though he has climbed to great heights in the drug business. Forbes had previously estimated his net worth at $1 billion.

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