Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 08MEXICO3650, Mexico Economic Weekly - December 11

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08MEXICO3650.
Reference ID Created Released Classification Origin
08MEXICO3650 2008-12-11 23:16 2011-08-25 00:00 UNCLASSIFIED Embassy Mexico
R 112316Z DEC 08
FM AMEMBASSY MEXICO
TO SECSTATE WASHDC 4327
DEPT OF COMMERCE WASHINGTON DC
DEPT OF ENERGY WASHINGTON DC
DEPT OF TREASURY WASHINGTON DC
NSC WASHINGTON DC
INFO ALL US CONSULATES IN MEXICO COLLECTIVE
UNCLAS MEXICO 003650 
 
 
STATE FOR WHA/MEX, WHA/EPSC 
STATE FOR EEB 
USDOC FOR 4320/ITA/MAC/WH/ONAFTA/GWORD 
TREASURY FOR IA 
ENERGY FOR WARD, LOCKWOOD AND DAVIS 
 
 
E.O. 12958: N/A 
TAGS: ECON EFIN ETRD ENRG ELTN EAIR PGOV SENV MX
SUBJECT: Mexico Economic Weekly - December 11 
 
1.  (U) The Mexico Economic Weekly supplements individual reporting 
from the Consulates and the Embassy Mexico Economic Section to 
provide a sense of ongoing trends.  Please contact Adam Shub 
(shubam@state.gov) or Sigrid Emrich (emrichs@state.gov) for 
questions or comments about this report. 
 
2. (U) Table of Contents: 
 
TRADE/INVESTMENT: 
----------------- 
 
MEXICO STILL ATTRACTIVE TO FOREIGN INVESTMENT DESPITE FINANCIAL 
CRISIS (Mexico City) 
 
BUSINESS STYMIES GOVERNMENT'S TARIFF-REDUCTION PLAN (Mexico City) 
 
GUADALAJARA AIRPORT TO CLOSE TERMINAL, DEFER INVESTMENT 
(Guadalajara) 
 
MONTERREY REAL ESTATE DEVELOPER MOVING FORWARD (Monterrey) 
 
FULL IMPACT OF SLOWDOWN YET TO HIT INDUSTRIAL SITE DEVELOPERS 
(Matamoros) 
 
 
FINANCE/ECONOMY: 
---------------- 
 
SECURITY AND ECONOMIC CONCERNS CAUSE MONTERREY TECH ENROLLMENT DROP 
(Monterrey) 
 
CHIHUAHUA SAVINGS ACCOUNT DEPOSITS DECLINE 12%; CREDIT CRISIS AND 
POOR SECURITY CONDITIONS TO BLAME (Ciudad Juarez) 
 
NAFIN CREDIT PROGRAM CRITICIZED (Monterrey) 
 
GROUPO INDUSTRIAL SALTILLO CANCELS SALE (Monterrey) 
 
 
LABOR: 
------ 
 
MAQUILADORAS EXPECT TOUGH LABOR NEGOTIATIONS (Matamoros) 
 
 
ENERGY: 
------- 
 
LEADERS CONFIRM OPENING OF PEMEX MARKETS TO DRAW FDI (Matamoros) 
 
 
TRADE/INVESTMENT: 
----------------- 
 
3.  (U) MEXICO REMAINS ATTRACTIVE TO FOREIGN INVESTMENT DESPITE 
GLOBAL FINANCIAL CRISIS: 
Several U.S. companies recently announced significant investments 
and expansion plans in Mexico thanks to its proximity to the U.S., 
cheap labor and the peso depreciation, which makes exports 
attractive to foreign consumers.  On December 5, Best Buy opened its 
second-largest store worldwide in Mexico.  The company has plans to 
open more stores in central Mexico taking advantage of the expected 
population growth. Given the contraction in the U.S. construction 
and real estate sectors, American Standard decided to move its bath 
furniture production from the U.S. and Brazil to its Mexican plants 
in Aguascalientes and Tlaxcala. The government projects that FDI 
will reach US$ 20 billion in 2008, down about US$ 25 in 2007. 
(Mexico City) 
 
4.  (U) GOVERNMENT WILL DELAY REDUCTION AND ELIMINATION OF DUTIES: 
The National Confederation of Industrial Chambers (Concamin) 
succeeded in delaying the implementation of the government's bold 
tariff-reduction plan.  According to members of Concamin, who this 
week met with Under Secretary Lorenza Martinez, the Secretariat of 
Economy agreed to postpone implementation until July 2009. 
According to the government's proposal, the average tariff would 
have been reduced from the current 10% to 2% in 2012.  Martinez 
acknowledged negotiating with the industry, but refused to give a 
new date for the plan's implementation.  The government had planned 
to reduce 80% of tariffs for third country imports, but Concamin 
submitted a more limited proposal to reduce only 33% of tariffs. 
Currently, 20% of products have a zero tax.  The industry and the 
government will continue to discuss strategies to simplify foreign 
trade, including customs operations.  (Mexico City) 
 
5.  (U) GUADALAJARA AIRPORT TO CLOSE TERMINAL, DEFER INVESTMENT: 
Grupo Aeroportuario del Pacifico (GAP), the operator of Guadalajara 
International Airport (GDL), has announced plans to close the second 
of its two terminals and defer planned investment in a second 
runway, an intermodal bus station, and other facility improvements. 
Terminal 2 was inaugurated in August 2007 at a cost of USD 5 million 
to serve the regional flights of AeroMexico Connect and Alma 
Airlines.  When Alma suspended all service in November 2008, 
Terminal 2 lost 50 percent of its operations and became financially 
unviable. Figures for the first 10 months of 2008 indicate that 
passenger traffic at GDL grew by an anemic one half of one percent; 
the suspension of Alma service is likely to turn these numbers 
negative for the full year. (Guadalajara) 
 
6.  (U) MONTERREY REAL ESTATE DEVELOPER MOVING FORWARD: 
Notwithstanding the economic downturn, a prominent Monterrey-based 
real estate developer told post December 8 that his firm was moving 
forward with projects.  Provided that a company had sufficient cash 
to ride out the recession, the contact noted, now was a good time to 
embark on investments that would bear fruit once the economy began 
to expand again.  Indeed, the bear market conditions would help in 
getting better deals from the construction companies.  The Monterrey 
Group of Ten companies are suffering, our contact concluded, because 
they had experimented with risky derivatives contracts and hadn't 
thought through the implications of borrowing short-term.   Sticking 
to one's core business, he concluded, remains the best strategy. 
(Monterrey) 
 
7.  (U) FULL IMPACT OF SLOWDOWN YET TO HIT INDUSTRIAL SITE 
DEVELOPERS: 
The worst from the slowing economy has yet to come according to some 
industrial park managers in Reynosa and Matamoros. In regard to 
industrial site development, current plans are expected to move 
forward with few, if any, investors fearing the downturn enough to 
stop construction of new plants or expansions that are already 
underway. However, a significant slowdown in construction - starting 
with engineering layoffs followed by manual laborers- is estimated 
to begin in the first quarter of 2009 as current projects wrap up. 
Marketing and sales jobs are expected to be safe for the time being, 
with hopes of leasing available space, particularly as U.S. 
companies consider moves to the border region to save money on 
cheaper labor. Prologis, one of the world's largest industrial site 
developers, is still operating at 92 percent capacity in its Mexican 
industrial parks according to Juan Carlos Lopez, Prologis Vice 
President and Market Officer for Mexico. While Prologis expects a 
drop off in 2009, they are hopeful to maintain around 85 percent 
capacity, though many plans for new construction such as a new 
industrial park in Matamoros and further expansion in Reynosa, have 
been scrapped until the economy improves.  (Matamoros) 
 
 
FINANCE/ECONOMY: 
---------------- 
 
8.  (U) SECURITY AND ECONOMIC CONCERNS CAUSE 45% DROP IN U.S. 
MONTERREY TECH STUDENTS: 
The number of U.S. undergraduate and graduate students will fall to 
60 or 70 next year according to the Instituto Tecnolsgico de 
Monterrey (i.e., Monterrey Tec - a top private university in 
Mexico).  Officials told Consul General Williamson and PAO Huizinga 
during their December 3 visit to the school that the expected 45% 
drop is a result of security fears and economic concerns.  With 
respect to Mexican students, university officials said that the 
economic crisis was limiting the entry of new Mexican students and 
causing some current students to drop out. (Monterrey) 
 
9.  (U) CHIHUAHUA SAVINGS ACCOUNT DEPOSITS DECLINE 12%; CREDIT 
CRISIS AND POOR SECURITY CONDITIONS TO BLAME: 
Savings account deposits in Chihuahua's banking sector fell 12% from 
June to September, according to Mexico's National Institute of 
Statistics and Geography (INEGI).  At the end of June, the gross 
savings deposit capitalization in the local banking sector stood at 
MX$ 40 million; by the end of the third quarter that figure had 
fallen to MX$ 35 million. In recent weeks Chihuahua banks have also 
tightened consumer credit availability and raised interest rates on 
credit cards.  While savings deposits have declined, checking 
account deposits in Chihuahua have remained steady at MX$ 16.1 
billion.  While these saving rates are already low, their decline 
signals distress in the local economy.  Local press accounts 
attribute the drop to a myriad of factors, including: 1) lower 
confidence in the local banking sector as a result of the 
international credit crisis; 2) the rise in unemployment in the 
state's manufacturing sector; and 3) the deteriorating security 
situation.  Banking in El Paso, for instance, is considered by many 
to be safer both in terms of financial and personal security. 
(Ciudad Juarez) 
 
10.  (U) NAFIN CREDIT PROGRAM CRITICIZED: 
Nacional Financiera (Nafin) is failing to free up credit to small 
and medium sized businesses (PYMES, in Spanish), according to a 
December 4 statement by Federico Toussaint, the president of 
Caintra, Neuvo Leon's business association.  Nafin's program to 
guarantee up to 12.5 million pesos of loans is not being accepted by 
banks, therefore companies are being denied credit or seeing their 
credit lines reduced. Toussaint plans to meet with the Secretary of 
Finance, Nafin and the Mexican Banking Association to resolve the 
matter. (Monterrey) 
 
11.  (U) GROUPO INDUSTRIAL SALTILLO CANCELS SALE: 
Group Industrial Saltillo (GIS), a large industrial conglomerate 
based in Coahuila, cancelled the sale of its home wares division on 
December 4. The company cited the volatile financial markets and 
weak overall economic conditions as reason for canceling the sale. 
The company planned to use the proceeds of the sale to reduce debt. 
The decision to cancel the sale also comes in the wake of US$536 
million in derivatives losses announced in October.  EconOff met 
with Fitch Ratings, a bond rating company, and was told that the 
future of the company remains uncertain. GIS is set to roll over a 
large portion of its debt next year and Fitch Ratings current has a 
negative outlook on the company's bond issues. (Monterrey) 
 
LABOR: 
------ 
 
12.  (U) MAQUILADORAS EXPECT TOUGH LABOR NEGOTIATIONS: 
The Matamoros Maquiladora Association (AMMAC) is beginning its 
latest round of labor negotiations this week with SOJIIM, the 
largest CTM union in Matamoros. According to AMMAC Labor Committee 
Director Angelica Gomez, the negotiations are expected to be 
difficult, primarily due to pressures from the workers in regard to 
inflation, the diminishing value of the peso versus the dollar, and 
lay-off fears in the local industry. According to AMMAC data, 
negotiations by individual companies have shown salary increases 
jump 25 percent since August, with summer negotiators settling at 4 
percent increases and the most recent agreements at 5 percent or 
more. AMMAC is encouraging its members to work together, with 
President Monica Gonzalez Greer telling members in attendance at the 
December monthly meeting: "Historically, statistics clearly show 
that Association negotiations get better results for members than 
individual company efforts." Greer added that the number of members 
committed to group negotiations is down this year and that the union 
has been placing particularly strong pressure on maquiladoras to 
negotiate separate contracts this year.  (Matamoros) 
 
 
ENERGY: 
------- 
 
13.  (U) LEADERS CONFIRM OPENING OF PEMEX MARKETS TO DRAW FDI: 
Government and industry leaders expect the energy reform package 
approved by the Mexican Congress in October to create opportunities 
for investment in ancillary services in the natural gas and 
petroleum sectors.  According to members of the Secretary of 
Economy's office in the municipality of Reynosa, Tamaulipas - home 
to significant petroleum refining and natural gas exploration 
installations - changes in PEMEX are expected to attract significant 
new investments in ancillary service providers. The municipal 
government expects thousands of potential new jobs related to the 
industry. (Matamoros) 
 
 
Garza