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Viewing cable 07MEXICO3511, MEXICO'S INVESTORS DISCUSS EFFECTS OF NARCO CRIME

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Reference ID Created Released Classification Origin
07MEXICO3511 2007-07-03 21:39 2011-08-25 00:00 UNCLASSIFIED Embassy Mexico
VZCZCXRO2902
PP RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #3511/01 1842139
ZNR UUUUU ZZH
P 032139Z JUL 07
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC PRIORITY 7843
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE PRIORITY
RUEHBO/AMEMBASSY BOGOTA PRIORITY 3760
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
UNCLAS SECTION 01 OF 02 MEXICO 003511 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/MEX 
EB/IFD/OIA FOR JOHN FINN 
 
E.O. 12958: N/A 
TAGS: ECON EINV ECIN ELAB PGOV MX
SUBJECT: MEXICO'S INVESTORS DISCUSS EFFECTS OF NARCO CRIME 
 
REF: A. MEXICO 2852 
 
     B. MEXICO 3246 
 
1. (U) Summary:  Narcotics-related violence in parts of 
Mexico continues to raise concerns about its potential effect 
on Mexico's investment climate.  On June 28, the American 
Chamber of Commerce (AmCham) addressed this issue, by holding 
the International Forum on Investment and Security, where 
business and government leaders met to discuss the threat of 
narcotrafficking to the investment climate in Mexico.  The 
general consensus was that, through cooperation between all 
its branches, the government is doing a good job and needs to 
continue the fight against organized crime.  Colombia's 
successes in  Cali and Medellin were cited as examples for 
Mexico in their fight.  However, it was noted that security 
is not the only problem facing investors in Mexico.  A lack 
of infrastructure, economic reform and protection of 
intellectual property were cited as equally severe threats to 
Mexico's investment climate.  End Summary 
 
2. (U) The AmCham sponsored "International Forum on 
Investment and Security: Proposals and Prospects" on June 28 
in Mexico City.  The conference was well attended by both 
public and private sector members.  Presenters included 
Secretary of Interior Francisco Ramirez Acuna, Attorney 
 
SIPDIS 
General Eduardo Medina Mora, and Secretary of Public Security 
Genaro Garcia Luna. 
 
3. (U)  A main theme among the government presenters was that 
the fight against crime was a joint effort between all 
branches of government.  Ramirez Acuna noted that both the 
executive and legislative branches were working together to 
improve the economy and that includes tackling the security 
issues.  Medina Mora spoke of the move towards changing 
Mexico's justice system to an accusatory system, to better 
combat crime.  A panel by PAN Senators Ulises Ramirez Nunez 
and Alejandro Gonzalez Alcocer and PRI Deputy Patricia 
Villanueva Abrajan, all members of the Mexican Congress's 
Commission of Justice and Public Security, also touched on 
the need for joint cooperation between all three branches of 
government.  In addition to the actions by the Calderon 
government to fight organized crime directly, the legislators 
said Congress was also taking steps to combat 
narcotrafficking by combating the underlying causes of 
organized crime, such as supporting reforms and encouraging 
improvements in poverty levels, education and health. 
 
4. (U)  Another frequently mentioned point was that, despite 
the media focus on security, there are other problems that 
need to be rectified before investment in Mexico can reach 
its full potential.  To emphasize the point, Garcia Luna 
commented on the fact that the homicide rate has fallen 39 
percent in the past 10 years.  He also noted that robberies, 
not capital crimes comprise the majority of crimes in Mexico. 
 Among the improvements cited as needed to attract investment 
are infrastructure development, particularly in the inner 
regions on the country; increased intellectual property right 
(IPR) protections combined with an attack on the major 
sources of IPR violations not just the obvious activities; 
fiscal and labor reforms; and increased competitiveness in 
certain key sectors.  Medina Mora noted that the National 
Development Plan (ref A) and the recent fiscal reform package 
(ref B) are both aimed at improving Mexico's competitiveness 
overall.  He said that the fight against organized crime is 
just one piece of the competitiveness puzzle. 
 
5. (U)  Colombia's Ambassador to Mexico, Luis Camilo Osorio, 
who is also a former Colombia Attorney General spoke about 
Colombia's experience combating organized crime and how it is 
possible for Mexico to succeed.  He spoke of how the cities 
of Cali and Medellin have been able to improve their security 
climate and by extension their investment climate 
dramatically over the past decade.  Former Mexican Attorney 
General, Ignacion Morales Lechuga, spoke of the 
"Colombialization" of Mexico, and how it will take unity as a 
society to combat criminal elements.  Both speakers said that 
the steps being taken so far by the Calderon administration 
are steps in the right direction that need to be continued if 
there is any hope for success. 
 
6. (U)  Comment: Conference presenters agreed that the 
Calderon Administration will not give up the fight against 
criminality, and will push to reinstall the rule of law 
throughout the country.  At the same time, they recognize 
that security is not the only problem facing the Mexican 
business community.  The question is how successful the push 
against organized crime will be, and what will be done about 
the myriad of other problems that threaten Mexico's 
 
MEXICO 00003511  002 OF 002 
 
 
competitiveness. End Comment. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity and the North American 
Partnership Blog at http://www.intelink.gov/communities/state/nap / 
GARZA