Gas Price Hike Spurs Unrest

Reuters–Mexicans angry over a double-digit hike in gasoline prices looted stores and blockaded roads on Wednesday, prompting over 250 arrests amid escalating unrest over the rising cost of living in Latin America’s second biggest economy.Twenty-three stores were sacked and 27 blockades put up in Mexico City, Mayor Miguel Angel Mancera said, days after the government raised gasoline costs by 14 to 20 percent, outraging Mexicans already battling rising inflation and a weak currency.

Mexican retailers’ association ANTAD urged federal and state authorities to intervene quickly, saying 79 stores had been sacked and 170 forcibly closed due to blockades.

Deputy interior Minister Rene Juarez said over 250 people had been arrested for vandalism and that federal authorities were working with security officials in Mexico City and the nearby states of Mexico and Hidalgo to address the unrest.

“These acts are outside the law and have nothing to do with peaceful protest nor freedom of expression,” Juarez said in a press conference late on Wednesday.

Mexican President Enrique Pena Nieto said earlier on Wednesday that the price spike that took effect on Jan. 1 was a “responsible” measure that the government took in line with international oil prices.

The hike is part of a gradual, year-long price liberalization the Pena Nieto administration has promised to implement this year.

State oil company Pemex said on Tuesday that blockades of fuel storage terminals by protesters had led to a “critical situation” in at least three Mexican states.

(Reporting by Alexandra Alper and Lizbeth Diaz; Editing by Simon Cameron-Moore)

US Trained Dolphins to Aid in Search for Endangered Vaquita

Reuters—U.S. Navy-trained dolphins and their handlers will participate in a last-ditch effort to catch, enclose and protect the last few dozen of Mexico’s critically endangered vaquita porpoises to save them from extinction.International experts confirmed the participation of the Navy Marine Mammal Program in the effort, which is expected to start sometime this spring.

Jim Fallin of the U.S. Navy Space and Naval Warfare Systems Center Pacific said Tuesday that the dolphins’ participation is still in the planning stage.

The dolphins will use their natural sonar to locate the extremely elusive vaquitas, then surface and advise their handlers.

“Their specific task is to locate” vaquitas, which live only in the Gulf of California, Fallin said. “They would signal that by surfacing and returning to the boat from which they were launched.”

The dolphins have been trained by the Navy for tasks like locating sea mines.

The vaquitas, the world’s smallest and most endangered porpoise species, have been decimated by illegal fishing for the swim bladder of a fish, the totoaba, which is a prized delicacy in China.

Although the vaquita has never been held successfully in captivity, experts hope to put the remaining porpoises in floating pens in a safe bay in the Gulf of California, also known as the Sea of Cortez, where they can be protected and hopefully breed.

Lorenzo Rojas-Bracho, chairman of the International Committee for the Recovery of the Vaquita, wrote that “an international group of experts, including Navy personnel, have been working on two primary goals: determining the feasibility of locating and catching vaquitas, as a phase One. And as a second phase, to determine the feasibility of temporarily housing vaquitas in the Gulf of California.”

Rojas-Bracho said the effort by the international team of experts “would involve locating them, capturing them and putting them in some kind of protective area,” probably a floating enclosure or pen in a protected bay where they would not be endangered by fishing nets. Mexico has banned gill nets that often trap vaquitas in the area, but has had trouble enforcing it because the totoaba draws very high prices on the illegal market.

“At the current rate of loss, the vaquita will likely decline to extinction by 2022 unless the current gillnet ban is maintained and effectively enforced,” Rojas-Bracho wrote.

According to rough estimates, with vaquita population numbers falling by 40 percent annually, and only 60 alive a year ago, there could be as few as three dozen left.

Some experts, like Omar Vidal, Mexico director of the World Wildlife Fund, oppose the capture plan, which could risk killing the few remaining vaquitas and open up a free-for-all of illegal fishing once they are removed from their natural habitat. “We must strive to save this porpoise where it belongs: in a healthy Upper Gulf of California,” he said.

Catch-and-enclose is risky. The few remaining females could die during capture, dooming the species. Breeding in captivity has successfully saved species such as the red wolf and California condor, but the vaquita has only been scientifically described since the 1950s and has never been bred or even held in captivity.

Experts including Rojas-Bracho; Barbara Taylor, leader of Marine Mammal Genetics Program at the National Oceanic and Atmospheric Administration; and Sarah Mesnick of the NOAA’s Southwest Fisheries Science Center, stressed that the capture program “should not divert effort and resources away from extension and enforcement of the gillnet ban, which remains the highest-priority conservation actions for the species.”

Veterinarians will evaluate vaquitas’ reactions and release stressed individuals, they wrote. Should a death occur, the team will re-evaluate the sanctuary strategy.

“It is important to stress that the recovery team goal is to return vaquita from the temporary sanctuary into a gillnet-free environment,” they wrote.

First Baby in Mexico Given Both Maternal Surnames

Reuters–The first baby in Mexico to be officially named with the maternal surnames of both parents has been registered in the northern state of Nuevo Leon.The tradition in Latin America is to give babies two last names – the father’s surname, followed by the mother’s paternal surname.

So baby Barbara born to Jose Gonzalez de Diego and Alicia Vera Zboralska would normally have been named Barbara Gonzalez Vera, losing both parents’ maternal surnames.

But to honor the maternal line, the couple won a court injunction allowing them to name their child Barbara de Diego Zboralska.

Court records showed the couple got the injunction Dec. 28 and the child was registered Monday in the city of Monterrey.

Raul Guajardo, director of public registries in Nuevo Leon, said it was a first.

“In the history of the country, no boy or girl has ever been given the maternal surnames of the father and the mother,” he said.

US Protectionism, Inflation, De-Regulation of Fuel Rock Value of Peso

Reuters–Mexico’s peso hit a new record low on Wednesday, falling more than 1.5 percent amid ongoing uncertainty over U.S. President-elect Donald Trump’s eventual policies and in anticipation of an address by the Mexican president.The peso MXN= MXN=D2 dropped as low as 21.4750 per dollar, after pushing past the previous low of 21.395 per greenback set on Nov. 11, soon after Trump’s surprise Nov. 8 election victory. It later pared losses slightly.

On Tuesday, the peso was rocked by Ford Motor Co.’s decision to cancel a planned $1.6 billion investment in central Mexico, while fears over inflation have been stirred by a major fuel price hike that took effect on Jan. 1.

“With this Ford announcement, markets are clearly seeing the risk of protectionist measures toward Mexico,” said Juan Carlos Alderete, a strategist at Banorte-IXE.

“A scenario in which Trump is very aggressive in terms of policies toward Mexico is not yet priced into the market, and the Ford announcement reflects that,” he added.

Trump’s election win drove the Mexican currency lower amid a sell-off fueled by his threats to scrap a trade deal between Mexico and the United States, and to levy punitive tariffs on Mexican-made goods.

He railed against Mexico on the campaign trail, threatening to halt transfers from Mexican nationals in the United States unless Mexico agreed to pay for the massive wall he has vowed to build on the U.S. southern border to keep out illegal immigrants.

The Mexican fuel price increase stemmed from the finance ministry’s decision to put an end to government-set prices, but the size pf the rises also spurred some protests in Mexico, prompting speculation that the government could seek to stagger the increase.

So far, officials have ruled out any such move.

President Enrique Pena Nitro was expected to speak at noon local time, prompting traders to speculate on what he might say.

(Writing by Dave Graham; Editing by Simon Gardner and Alistair Bell)

Electricity Costs To Rise Following Rise in Gas Prices

The electricity tariffs for industrial, commercial and domestic high consumption will increase in January, the Federal Electricity Commission (CFE) of Mexico reported in a statement. CFE said that the increase will not affect low-power households.The adjustment has occurred after the government announced last December liberalization of gasoline in 2017 and amid protests across the country by rising prices and the impact on inflation because of deregulation. The biggest increase is expected for the industry, between 3.7% and 4.5%. Businesses will pay between 2.6% and 3.5% more. Meanwhile, the increase for high-consumption households will be 2.6%.

CFE explained that the increase is due to rising price of fuel used to generate electricity. The cost of natural gas rose 77% in December 2016 compared to the same month in 2015. The price of imported coal increased by 72.8% in that period.

“The increase will have a major impact on high-end consumer residential customers who pay heavily, and for industrial consumers focused on the domestic market, although it remains a competitive dollar price for exporters,” said Duncan Wood, director the Mexico Institute of the Woodrow Wilson Center . The researcher points out that two variables will be key in determining the price of inputs and set electricity rates in the coming months: the exchange rate of the peso against the dollar and demand for natural gas in the United States during the winter.

Wood believes that the creation of an energy market is positive in the long run for the Mexican economy, but that the government was wrong to promise that the prices of the sector would remain stable, something that can not be guaranteed under free market conditions. “The fall in popularity of the president is evident and the opposition has been strengthened after these measures,” he adds.–Reuters 

Gas Prices to Rise 20% Starting January, 2017

Reuters – Mexican gasoline prices will rise by as much as 20.1 percent next month compared to the highest recorded prices in December, the government said on Tuesday, as part of a program to end years of government-set prices at the pump.
In a statement, the finance ministry said the widely used Magna gasoline brand will rise 14.2 percent and will sell at an average price of 15.99 pesos (78 cents) per liter at retail, while Premium fuel will go up 20.1 percent to an average of 17.79 pesos per liter.
Diesel will rise 16.5 percent, with an average price of 17.05 pesos per liter.
The ministry’s price ceilings will be in effect through Feb. 3. After that, the maximum price will be set bi-weekly, until Feb. 18, when it will be set daily.
“It’s an important change,” Finance Minister Jose Antonio Meade said in a local radio interview. “It’s a change that will allow prices to reflect costs, and avoid artificial distortions.”
Earlier this month, the energy regulatory commission said a staggered fuel price liberalization will begin at the end of March and extend through the rest of 2017.
The move will phase out government-set gasoline prices, a practice that has prevailed in Mexico for decades, and replace them with market prices.
The change is one of the most tangible parts of a landmark energy reform program in Mexico, which in 2013 ended the 75-year monopoly of state oil company Pemex over nearly all facets of the sector, from crude production to retail fuel sales.
In April, Mexico allowed private companies to import fuels for the first time, nine months ahead of what the energy reform program originally stipulated.
The reforms also paved the way for private companies to establish their own non-Pemex branded gas stations for the first time since the 1930s. That began earlier this year.
Gasoline prices in Mexico are higher than in the United States, where market prices prevail, and Pemex loses about $3 billion a year importing gasoline into Mexico, according to Nomura analyst Benito Berber.
(Reporting by Gabriel Stargardter and Veronica Gomez; Editing by Jeffrey Benkoe and Alistair Bell)

Mexico Seeks to Defuse Trump Threats To Disrupt Trade & Investment

Reuters – Mexico aims to defend free trade with the United States by using border security and immigration policy to gain leverage in talks with U.S. President-elect Donald Trump after he takes office next month, senior officials say.
To defuse Trump’s threats to disrupt trade and investment, policymakers say Mexico aims to strike a balance between hearing out his concerns over illegal immigration and U.S. jobs, and adopting a firm posture to protect its own economic interests.
Mexico wants security, immigration and management of the U.S.-Mexican border to be on the table alongside trade when it sits down to talk to the Trump administration, a person familiar with the government’s thinking said, speaking on condition of anonymity.
That could translate into Mexico offering to reinforce its northern border to curb drug smuggling and migrants, said one former high-level official familiar with discussions in Mexico.
It might also mean giving the United States a bigger part to play in securing Mexico’s southern border with Guatemala, where many thousands of illegal immigrants from the rest of Latin America pass through every year on their way to the United States, a senior Mexican government official said.
After Trump’s inauguration on Jan. 20, Mexico needs to keep the discussion with Washington as broad as possible, said Victor Giorgana, a congressman in President Enrique Pena Nieto’s Institutional Revolutionary Party, or PRI.
“It can’t just be about one issue, as that would put us at a disadvantage,” said Giorgana, who chairs the lower house foreign relations committee.
Trump outraged Mexico during the campaign by accusing it of sending rapists and drug runners north, and by vowing to make it pay for a border wall to keep out illegal immigrants.
Though bilateral discussions with Trump’s team are already under way via informal channels, it is still unclear exactly what stance the Republican will take as president.
No date has been set for formal talks, but Mexico’s government has signaled its readiness to engage with Trump.
NAFTA WORRY
Mexico’s main economic worry is the North American Free Trade Agreement (NAFTA) between the United States, Mexico and Canada that underpins the bulk of foreign direct investment.
Trump has threatened to scrap NAFTA if he cannot rework it to his advantage.
Mexico has said it could consider adding new chapters to the agreement covering issues such as labor standards to mollify U.S. trade unions anxious about cheaper Mexican workers.
But with Mexico the No. 1 or No. 2 export market for almost half of the 50 U.S. states, there is widespread confidence the essence of the accord will be upheld.
“At the end of the day it’s clear that the amount of U.S. investment in Mexico based on NAFTA will prevail,” said Andres Rozental, a former deputy foreign minister involved in ongoing bilateral discussions between top executives over trade.
Senior Mexican officials believe U.S. business leaders and politicians understand how closely integrated the neighboring economies are today, and can persuade Trump not to seriously endanger $500 billion in bilateral annual trade.
Failing that, Mexican lawmakers point to issues including their country’s commitment to helping combat a growing heroin problem – U.S. deaths from use of the drug rose by a fifth to almost 13,000 in 2015 – as well as its increasing efforts to tackle illegal immigration as potential bargaining chips.
Deportations of illegal immigrants from Mexico have surged under Pena Nieto, with the 181,163 in 2015 more than double the number expelled during 2012, his predecessor’s final year.
Among the many thousands Mexico had to process were Africans, Asians, Arabs, Central Americans, South Americans as well as the “latent risk of terrorists”, said Enrique Jackson, deputy leader of the PRI in the lower house of Congress.
“These people are trying to enter U.S. territory. So it’s a shared issue. At some point these things must be put on the table, and they have to open their eyes.”
To help deal with Trump, Pena Nieto is seeking a role for one of his most trusted aides, former finance minister Luis Videgaray, according to three people familiar with talks.
Videgaray masterminded Trump’s hastily arranged meeting with Pena Nieto in Mexico City in August, which was a public relations disaster for the president, and caused frictions in the cabinet. Videgaray stood down a week later.
But Videgaray is respected among leading U.S. defenders of the bilateral trade relationship, and even some domestic critics privately say he could be an important bridge-builder.
For this reason, he could soon be appointed foreign minister, according to the three people. A presidential spokesman described the notion as “rumors”.
(Additional reporting by Ana Isabel Martinez; Editing by Alistair Bell and Dale Hudson)

Gasoline Hike May Cause Increasing Inflation in Mexico

Reuters – The Mexican government’s announcement that it will hike gasoline prices by up as much as one-fifth next month has prompted economists to begin raising 2017 inflation forecasts, putting the central bank’s target rate in increasing doubt.
Mexican bank Banorte hiked its 2017 inflation outlook to 4.7 percent from 4.3 percent after the finance ministry said on Tuesday that new January price ceilings would be 14.2 percent to 20.1 percent above December’s highest recorded prices.
Brokerage Finamex, which will soon revise upward its 4.5 percent inflation forecast for 2017, said the fuel price hikes would increase the consumer price index by 0.8 percent in the first half of January compared with the last half of December.
Mexico’s central bank this month hiked interest rates for a fifth time this year to curb inflation that is already running above the central bank’s 3 percent target. Inflation has been fanned by a slump in the peso currency following Donald Trump’s U.S. presidential victory.
“The challenge for monetary policy in 2017 is enormous,” Finamex said in a client note, forecasting that central bank rate hikes will continue into next year.
Brokerage Vector said it would raise its inflation forecast for January, but it did not say by how much.
Invitations to a Mexico City protest and a gasoline boycott circulated on social networks, while Concamin, a Mexican industry association, expressed concern that the move would create added headwinds for local businesses.
Finance Minister Jose Antonio Meade defended the fuel price hike, arguing that keeping gasoline costs artificially low following an increase in international oil prices was too expensive for public finances.
“We couldn’t keep doing it,” he said on television.
Oil prices have surged about 50 percent this year after plunging to multi-year lows in January.
In the first half of December, annual inflation accelerated to 3.48 percent, its fastest pace in two years. The central bank raised interest rates to 5.75 percent this month, the highest since April 2009.
The bank expects inflation to accelerate further in 2017 without exceeding its 4 percent tolerance ceiling.
Inflation concerns aside, some economists saw a silver lining to the gas price rise, which is part of a program to end decades of government-set prices at the pump.
“Despite the distortions generated by this increase, the gasoline price liberalization is part of the country’s efforts to incentivize the free market, even though it would have been better to do it gradually,” Banorte said.
(Reporting by Alexandra Alper, Veronica Gomez, Paulina Osorio, Miguel Angel Gutierrez and Roberto Aguilar; Editing by Jeffrey Benkoe)

Many Injured at Mexico City Area Fireworks Market

An explosion at a fireworks market outside Mexico city has injured at least 60 people.The blast hit the San Pablito fireworks market, about 20 miles (32km) outside the city. Local media are reporting fatalities but officials declined to confirm this on the record.

Video from the scene showed smoke billowing from the area and blasts could be heard in the background.

Emergency services are attending the scene. 

The Mexico State Red Cross said 25 ambulances had been dispatched.

National Civil Protection Co-ordinator, Luis Felipe Puente, asked locals to avoid the area and keep the roads clear for emergency access.

He also said that despite media reports of fatalities, there was no “official information” about any deaths as a result of the explosion.

State governor Eruviel Avila said the top priority was to care for the injured, and officials had been dispatched to the scene.

EDR Dog Park (Continued)

Just a little update on the EDR dog park.

img_0660The dog park appears to be approximately an acre or s0 of flat, sandy ground with about a 10 foot chain-link fence all around the exterior.  There is an “unleashing/leashing up area” at the entrance. A bench and an assortment of pooper scoopers and bags are located on the far fence.  There is a goodly amount of space to throw balls and frisbees. Please be advised that there is NO separate small dog area.  Extra caution should be maintained if you own a small dog.  We were not aware of anyone monitoring the area while we were there.

(Note:  The rules are clearly posted in English. It might not be a bad idea to have these rules posted in Spanish, as well, since 1.) we are in Mexico and, 2.) we do get Spanish-speaking visitors to EDR.    It might also be helpful if the sign included a contact number.)

The rules read as follows:

  • This off-leash facility is maintained by volunteers–please scoop the poop and take the bag with you!
  • Use of this facility is at your and your pet’s own risk.
  • Dogs must be current with their vaccinations.
  • Aggressive dogs, females in heat or puppies under four months old are not allowed.
  • Owners must be with their dogs within this area at all times and are responsible for them.
  • Dogs should be leased when outside the enclosure.
edr-dogpark-frntgtview

Main Gate to Leash-Up Area

edr-dogpark-frontgate

Main Gate to Leash-Up/Unleash Area

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