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Mexico, US, Canada sign modified trade deal but business leaders divided

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López Obrador and other officials witness the signing of the accord.
López Obrador and other officials witness the signing of the accord.

Officials from Mexico, Canada and the United States signed a revised version of the new North American free trade agreement on Tuesday, paving the way for the trilateral pact to take effect in 2020.

Foreign affairs undersecretary Jesús Seade, Deputy Prime Minister of Canada Chrystia Freeland and U.S. Trade Representative Robert Lighthizer signed a protocol to modify the United States-Mexico-Canada Agreement (USMCA) at an event in the National Palace in Mexico City attended by President López Obrador and other officials.

The revamped trade pact stipulates that within seven years, 70% of steel used in automaking must be melted and poured in North America in order for vehicles to qualify for zero tariffs. The rule largely shuts the door on semi-finished metal from China and elsewhere. The same rule for aluminum was not included but the three countries agreed to reconsider the possibility in 10 years.

The amended agreement – which was not made public – also allows for independent experts to carry out inspections of workplaces in Mexico to verify their compliance with new labor laws that guarantee greater rights and freedoms for union members, according to the United States and Canada.

However, undersescretary Seade denied that foreign labor inspectors would work in Mexico and said that disputes between USMCA countries would be resolved through panels.

López Obrador and Trump advisor Jared Kushner after Tuesday's signing.
López Obrador and Trump advisor Jared Kushner after Tuesday’s signing.

Among other modifications, the revised accord imposes stricter labor rules that aim to reduce Mexico’s low-wage advantage and loosens intellectual property rules for medications, which is expected to help keep prices down.

A ratification vote on the revised pact could take place in the United States House of Representatives by December 20 but Senate majority leader Mitch McConnell indicated that the upper house wasn’t likely to consider the agreement until early next year.

Ricardo Monreal, leader of the ruling Morena party in the Mexican Senate, said the revised deal will go to the upper house immediately, adding that debate will begin this week. Freeland said that no ratification timetable has been set in Canada but urged parliamentarians to pass it quickly, declaring that the deal was in Canada’s national interest.

Speaking after the signing ceremony, López Obrador described the updated pact as an “agreement of global dimension,” declaring that it will attract new investment to Mexico, stimulate economic growth, create jobs and reduce migration.

He thanked lawmakers in the United States as well as U.S. President Donald Trump.

“I’m obliged to acknowledge the respectful treatment we’ve received from President Donald Trump. Some people thought that reaching this agreement wasn’t going to be possible . . . that we weren’t going to understand each other, that we were going to fight, that we were going to butt heads, and look how things are,” he said.

Seade: 'No foreign labor inspectors.'
Seade: ‘No foreign labor inspectors.’

For his part, Lighthizer described the pact as “the best trade agreement in history,” asserting that it will make all three countries richer.

“. . . We in the United States have a stake in Mexico being richer. It’s important for us that Mexico succeed and I think this agreement is going to make that more likely . . .” he said.

Lighthizer praised López Obrador for supporting the deal, whose original incarnation was negotiated before he took office.

“In the middle of this negotiation, you were running for election, you took the high road, the road that was best for North America and for Mexico, you never got involved in politics with respect to this. It was a very impressive thing for all of us to watch . . .” he said.

Later Tuesday, Mexican business leaders offered varying assessments of the modified pact.

Among those who expressed support were Mexican Business Council president Antonio del Valle and Business Coordinating Council chief Carlos Salazar.

De Hoyos: 'Government a bad negotiator.'
De Hoyos: ‘Government a bad negotiator.’

“We’re very happy; I believe that this [agreement] is extremely important for our country, it provides certainty for large investments . . . That’s why we generally agree with everything that was signed,” Salazar said.

Mexican Employers Federation (Coparmex) president Gustavo de Hoyos took a very different view, charging that Mexico had ceded too much ground.

“We’re happy that the negotiation has finished. If it went on longer we could have ended up handing over the Isthmus of Tehuantepec . . . What’s been made clear is that this government is a bad negotiator, there is a clear step backward [for Mexico] from what we got in the close of negotiations on November 30 [2018],” he said.

“I believe that what happened here is [that Mexico adopted] a position akin to [former president Antonio López de] Santa Anna . . . Since half of Mexico’s territory was ceded in the [1848] Treaty of Guadalupe Hidalgo . . . history hasn’t recorded a government that ceded more,” de Hoyos added.

He questioned why López Obrador thanked Trump considering that the “new agreement was developed under threat from beginning to end” and said that the private sector was not consulted before the revised deal was signed.

“. . . They [the federal government] went far beyond the limits [of] . . . the country’s best interest . . . We hope that we don’t find any surprises in the fine print,” de Hoyos said.

In response, Foreign Secretary Marcelo Ebrard said that Coparmex’s position was indicative of an “ideological difference” with the government whose resolution will not be possible.

“. . . We think . . . that having a lax position [on labor issues] is bad for the economy. There is a difference there [with Coparmex] and of course they’re going to be against the matter being included in the agreement.”

Source: El Economista (sp), Milenio (sp), El Financiero (sp), Reuters (en) 

Economically privileged shouldn’t keep getting away with bad behavior

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mexico's millionaires
Legal privilege.

What is the definition of privilege?

To me, one’s privilege is defined by being able to really mess up, sometimes badly, and either to be exempted from the consequences or to suffer only the most minor kind.

So here’s a litmus test: if you make just one wrong move, are you done for? Or can you make dozens of wrong moves and still be all right, ready to move on to your next mistake?

The article about Mexico’s “eccentric millionaires” and my almost visceral reaction to the video of some rich dude driving around like he was the self-appointed king of Mexico got me thinking, once again, about the dynamics of privilege both here and abroad. If you can get through the video without feeling actual physical disgust, count me impressed.

In Mexico as in most other places in the world, privileged adults tend to have been privileged children. Hard work counts, of course, but being able to get the kind of education needed to rise up in a capitalist society — and to have one’s bad mistakes swept under the rug — keeps some people far ahead while others struggle with a combination of lack of opportunities and bad luck.

Some privileges show themselves biologically: a woman who makes the “mistake” of unprotected sex could be faced with the prospect of either caring for another human being for most of the rest of her adult life or going to jail for aborting, depending on where she lives; a man who makes that same mistake can carry on with his life as if nothing had happened.

Some privileges show themselves legally: a millionaire can get friendly waves and peace signs from police officers as he speeds by at over 200 kilometers per hour while poor citizens might be pulled over and have their car taken away if they can’t pay a bribe.

In the United States, a rich white kid like Brock Turner can get just a few months in jail and probation for raping an unconscious woman while black people are continuously killed by police officers who feel even a hint of suspicion that they want to cause harm. The former CEO of Amazon México was at least initially given a pass even after most evidence pointed to him having his ex-wife killed.

Some privileges show themselves socially: men are typically taken more seriously than women, and seldom face danger, ridicule or real discrimination on the basis of their gender. The indigenous of Mexico are still presumed to be “backward” in many ways, and it remains an insult to call someone an indio.

(When I wanted to give my daughter the middle name “Xóchitl,” nearly everyone I knew made a face; they would swear it was because the name was just “so common,” but during my five years of teaching at an elite school I didn’t have a single student with that name. My guess is that it was only common for a certain unpopular sector of the population).

Though I’m not as rich as most Mexicans who look like me are, as a white woman in Mexico I easily recognize the privileges I receive; people notice and pay attention to me, wait on me attentively, and don’t question whether or not I belong in whatever fancy place I go to.

When the escalator at the grocery store stopped working today, a worker was immediately ordered to help the woman (me). Last week I walked up and confidently took a glass of wine off a table that had been set up for an event I was not participating in, confident I would not be questioned.

The LeBaron family killings were especially shocking because we collectively thought “not even those rich Americans are safe? My God!” We expect the privileges we have to protect us, and for the most part, they do.

With the level of impunity in Mexico at an all-time high — only one out of 10 homicides solved it’s hard even to begin to think of ways to make this a more just society. But it doesn’t mean we shouldn’t try, and I think President López Obrador, for all his faults, is making a good-faith effort to tackle the problem — particularly when it comes to making sure the especially economically privileged don’t keep getting away with what they’re used to getting away with.

Bills to reduce waste and kickbacks have been approved, as have measures to reduce the salaries of government officials and overall budgets.

It doesn’t feel good to lose extra benefits, and it doesn’t surprise me that there’s been so much push-back. But if we’re going to create a more equal and just society, we can’t allow certain people to make their long list of “endless” mistakes consequence-free while others are punished for essentially the same behavior.

We humans are very status-conscious creatures, and in a country like Mexico where most people prefer to avoid conflict and discomfort at all costs, the challenge of getting people either to stick up for themselves or stick up for the law is palpable.

Justice is personified as a blindfolded woman with scales in her hands. Why is she blindfolded? Because justice should be applied across the board, without regard for whom it is being given. We’ve got a long way to go before we get there, but at least we’ve started down the path.

Sarah DeVries writes from her home in Xalapa, Veracruz.

Human rights prize winner documented abuse by military in Guerrero

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Prize winner Eugenio with rights commission president Piedra and López Obrador.
Prize winner Eugenio, center, with rights commission president Piedra and López Obrador.

An indigenous activist who documented and denounced abuse committed by the military in Guerrero is this year’s winner of the National Human Rights Prize.

Obtilia Eugenio Manuel was awarded the prize at Tuesday’s presidential press conference by National Human Rights Commission (CNDH) president Rosario Piedra Ibarra.

“. . . Eugenio Manuel, member of the Mep’haa Indigenous People’s Organization, has distinguished herself by denouncing abuses committed by army personnel against indigenous people, particularly women,” Piedra said.

The human rights chief said that among the military abuses that have been documented by Eugenio are the forced sterilization, sexual assault and sexual torture of indigenous women. Piedra also said the activist has received numerous threats and noted that she was abducted for four days earlier this year.

Eugenio, a Mixteca woman from the municipality of Ayutla, said her father encouraged her to study and learn Spanish in order to be able to defend the rights of indigenous people.

She recalled that after the Zapatista Army of National Liberation uprising in Chiapas in 1994, soldiers arrived in her community and accused residents of being Zapatistas.

“They raped women; there was never justice but we started to organize ourselves. [But] soldiers raped two women from the organization again. From that time, we’ve been harassed and threatened by army people who are complicit with people from organized crime,” Eugenio said.

“We don’t want one more rapist in our way,” Eugenio said, making a reference to the Chilean feminist anthem that has been performed around the world in recent weeks.

Also at Tuesday’s press conference, Piedra recognized the human rights work of Margarito Díaz González and presented an award to his widow, Modesta Chávez de la Rosa.

A former member of the Wirikuta security council and an advocate for environmental and indigenous rights, Díaz was murdered in Nayarit last year.

Piedra recalled that the activist opposed the construction of a dam and other projects in San Luis Potosí and the development of Canadian-owned mines on sacred sites of the Huichol people.

Source: El Financiero (sp) 

Obesity costs more than petroleum theft: international health organization

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Tacos are better.
Tacos are better.

Obesity is a greater financial burden on Mexico than petroleum theft, the Pan American Health Organization (PAHO) warned on Monday.

“We’re talking about extremely high figures, 150 billion pesos [US $7.8 billion] a year, obviously it’s more than the fuel theft problem,” said PAHO Mexico representative Cristian Morales.

The obesity problem is growing at an increasingly fast rate, he added.

Morales said that health problems associated with obesity, such as diabetes, not only affect the health of Mexicans but also the capacity to maintain economic growth and sustainable human development.

In that context, PAHO presented a report on Monday that details the consumption of unhealthy food in Mexico and six other Latin American countries and provides public policy recommendations to tackle the problem.

taco stand
A healthier alternative to junk food.

According to PAHO estimates, consumption of junk food in Mexico, Argentina, Brazil, Chile, Colombia, Peru and Venezuela has increased just over 18% in the last decade from 408 calories per person per day in 2009 to 482 calories in 2019.

The report recommends the promotion of unprocessed foods such as fruit, meat and eggs and beverages such as milk. In turn, governments of the seven countries should aim to limit consumption of processed foods through regulatory measures, PAHO said.

In Mexico, the consumption of traditional foods such as tacos, quesadillas and gorditas is not the main cause of the nation’s overweight and obesity problem, said PAHO chronic disease adviser Miguel Malo Serrano.

“How long have Mexicans eaten those things? . . . How long have there been traditional food stands in the street? The overweight and obesity problem took off as an epidemic when ultra-processed foods were incorporated into diets,” he said.

“This started 30 years ago and regrettably we see that Mexico . . . is now the leading country in the world for the consumption of sugary drinks with almost 500 milliliters per capita per day,” Malo said.

He praised the modifications to the General Health Law that stipulate that the labels on food and drinks must warn consumers if they contain high levels of calories, sugar, salt or saturated fat.

“At PAHO, we believe that labeling is fundamental [to reducing obesity] . . .” Malo said.

Another positive development is that soft drink producers last week committed to reduce the calorie content of the drinks they make and sell in Mexico by another 20% over the next five years.

Obesity is a nationwide problem but higher numbers of people suffer from the condition in rural areas and small cities, according to a study presented last week.

The National Health and Nutrition Survey for towns with fewer than 100,000 residents found that 75.2% of Mexicans in such towns were either overweight or obese in 2018, a 4% increase compared to 2012.

Source: Milenio (sp), El Financiero (sp) 

Agriculture Secretariat wants to encourage cultivation of 60 native plants

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Poinsettia is one of the native plants whose cultivation will be encouraged.
Poinsettia is one of the native plants whose cultivation will be encouraged.

The government has announced a new national project to encourage the cultivation and use of as many as 60 plants native to Mexico.

The native plants for food and agriculture program will aim to recover the value of native Mexican plant species that now form part of the foundation of diets all over the world, according to the Secretariat of Agriculture (Sader)

The project will begin with initiatives to make better use of the poinsettia plant so that people use it for more than just decoration, as it also has “properties for human consumption” and is a medicinal plant, said the department in a press release.

(Boiling up a bunch of leaves for dinner is not recommended. The plant is not toxic as was long thought, but it is not intended for human consumption, according to several sources on line).

Agriculture Secretary Víctor Villalobos Arámbula said the project will also encourage the cultivation and use of other plants such as chia, amaranth, cacao, chiles and vanilla.

“It is important to be aware of what our country contributes to the world because that makes us unique as a society. It make us experts of our resources and, above all, makes us feel proud to be the legitimate proprietors of this legacy,” he said.

Sader will coordinate with the National Forestry, Agriculture and Livestock Research Institute (INIFAP) and the National Seed Inspection and Certification Service (SNICS) to promote, recover and improve native species.

SNICS general director Leobigildo Córdova Téllez said Mexico is home to 10% of the world’s plant biodiversity with 2,500 species, many of which are used for food production and agriculture.

He added that Mexico has great potential for the production of ornamental plants such as bromeliads, cactuses, marigolds, dahlias, echeverias and poinsettias, among others.

Source: El Universal (sp)

Foreign tourism up 1.6% in first 10 months; October saw bigger increase

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Cancún is Mexico's busiest airport for foreign visitors.
Cancún is Mexico's busiest airport for foreign visitors.

The number of international tourists arriving by air increased 1.6% in the first 10 months of the year compared to the same period of 2018, according to Tourism Secretary Miguel Torruco Marqués.

He told reporters that 15.52 million foreign visitors entered the country via the nation’s airports between January and October. Of that number, 55.5% came from the United States, 11.4% from Canada, 3.2% from the United Kingdom, 3.1% from Colombia and 2.2% from Argentina, he said.

Tourists from the five nations represent just over three-quarters of all visitors who arrived in Mexico by air this year. Their numbers increased 0.3% compared to the first 10 months of 2018.

Torruco said that air arrivals from Peru recorded the biggest growth between January and October, increasing by 14.7%. France, Colombia and Canada followed, with air arrivals up by 9.1%, 7.3% and 7% respectively.

Cancún was the busiest airport for foreign arrivals, receiving 41.7% of all international visitors, followed by Mexico City with 26.6%; Los Cabos with 9.3%; Puerto Vallarta with 7.7%; and Guadalajara with 5.8%. More than 90% of foreign visitors flew into those five airports.

October was a particularly good month for international tourist numbers although individual visitors spent less on average while in the country than a year earlier. More than 1.63 million foreign visitors came to Mexico by air or land, a 4.4% increase compared to October 2018 and 27.3% more than in September this year.

Of that number, 83% of tourists arrived by air and 17% crossed into the country via Mexico’s borders with the United States, Guatemala and Belize, according to data from the national statistics agency, Inegi.

The tourists collectively spent US $1.33 billion while in the country, or an average of $816.90 each. The latter figure represents a 4.3% decline compared to October 2018 when tourists spent US $853 each on average. However, as a result of the higher visitor numbers, overall expenditure was equal to that of a year earlier.

The number of people who crossed into Mexico for reasons other than tourism, such as to access medical and dental services in northern border cities, also increased in October. Just over 1.99 million “border tourists” came to Mexico, a 30.8% increase compared to October last year.

They spent US $113 million while in the country, a 24.6% increase over expenditure in October 2018.

Source: 24 Horas (sp), El Economista (sp) 

2 McLarens, 2 Lamborghinis among luxury vehicles at weekend auction

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This 2019 Corvette is valued at 567,000 pesos.
This 2019 Corvette is valued at 567,000 pesos.

The federal government says seven luxury cars are among the goods that will be sold this weekend at the next narco-auction.

They are among 644 lots on the block at the “mega-auction” at the Los Pinos Cultural Center, in Chapultepec Park, on Saturday and Sunday.

“Seven luxury vehicles stand out: two McLarens, two Lamborghinis, an Aston Martin, a Ferrari and a Corvette,” said Ricardo Rodríguez Vargas, director of the Institute to Return Stolen Goods to the People.

One of the McLarens has been valued at 3.6 million pesos (US $187,000). The vehicles are expected to sell for prices ranging from 560,000 to 3.5 million pesos, and their total value is estimated at 20 million pesos.

“There are 644 lots. Right now we’re presenting twice what we usually do . . . so we’re doing the auction in two days,” he said, adding that it will be “the mother of all auctions.”

This 2018 McLaren 720S is valued at 3.61 million pesos.
This 2018 McLaren 720S is valued at 3.61 million pesos.

There will also be nine airplanes for sale, of which a Learjet 36A stands out with a value of 19 million pesos (US $987,500).

“This airplane can be used for flights of 10 or 11 hours, air ambulance flights, as an air taxi or for business trips,” said Rodríguez.

Rodríguez said the event will also auction off jewelry and houses that were presented but not sold at previous auctions. They will now be sold at a discount.

“The institute has had a very good reception from the public. We’ve done well selling the vehicles, the jewels as well. The real estate has been more difficult to sell, but we’re selling it.”

He said that houses in Sinaloa that are up for auction will be sold at a discount, while the bidding for those in Santa Fe, Mexico City, will start at 14 million pesos (US $727,000).

The full list of lots can be seen at the auction website (in Spanish).

President López Obrador reminded the public that the funds collected will be used for public works projects, like highway work in Durango and Guanajuato and paving roads in mountainous regions.

Source: Reforma (sp)

The Learjet Model 36A.
The Learjet Model 36A.

Calderón’s security chief arrested for taking bribes from Sinaloa Cartel

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García Luna, left, and then-president Calderón.
García Luna served as federal security minister during the Calderón administration, a position that allowed him to become an incredibly powerful ally to drug traffickers. (File photo)

Former president Felipe Calderón’s public security secretary was arrested in the United States on Monday on charges that he allowed the Sinaloa Cartel to operate in exchange for multimillion-dollar bribes.

Genaro García Luna, who was in charge of the Federal Police between 2006 and 2012 and a key figure in the implementation of the war on drugs launched by Calderón, was detained in Dallas, Texas, United States prosecutors said in a Brooklyn court on Tuesday.

“García Luna stands accused of taking millions of dollars in bribes from ‘El Chapo’ Guzmán’s Sinaloa Cartel while he controlled Mexico’s Federal Police force and was responsible for ensuring public safety in Mexico,” said attorney Richard P. Donoghue.

The “arrest demonstrates our resolve to bring to justice those who help cartels inflict devastating harm on the United States and Mexico, regardless of the positions they held while committing their crimes.”

An indictment unsealed on Tuesday said that García Luna “received millions of dollars in bribes from the Sinaloa cartel in exchange for providing protection for its drug trafficking activities.”

The ex-official, who prior to serving as public security secretary headed up the now-defunct Federal Investigation Agency, allegedly provided the cartel with security that allowed it to freely move drugs to the northern border and supplied confidential information about government investigations and other criminal organizations.

Sinaloa Cartel bagmen personally delivered payments to the former official in briefcases that contained between US $3 million and $5 million, the indictment said.

Jesús Zambada, a former Sinaloa Cartel operations chief, first made that allegation late last year during the trial of Guzmán in New York. García Luna rejected the claim, stating it was a “lie” and amounted to “defamation.”

However, the indictment said that “financial records obtained by the [U.S.] government” showed that “by the time García Luna relocated to the United States in 2012, he had amassed a personal fortune of millions of dollars.”

United States prosecutors also said the 51-year-old Florida resident lied about his past criminal involvement with the Sinaloa Cartel when he applied for U.S. citizenship in 2018. If convicted of receiving cartel bribes, García Luna faces a prison sentence of between 10 years and life.

Calderón responded to the news of his arrest in a Twitter post.

“I’m finding out via social media [about] the presumed arrest of Genaro García Luna. I don’t know the details and I’m awaiting information that confirms the event as well as the charges he is accused of. My position will always be in favor of justice and the law.”

Source: El Financiero (sp), El Universal (sp), The Guardian (en) 

Zapata’s grandson: family angered by painting’s ‘denigration’ of revolutionary

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Jorge Zapata expresses dismay over the painting of his grandfather.
Jorge Zapata expresses dismay over the painting of his grandfather.

Descendants of Emiliano Zapata announced they will sue the painter of a nude and feminized portrayal of the revolutionary general, as well as the Secretariat of Culture and the Palace of Fine Arts for using the painting in a promotion for an upcoming exhibition.

Painted by artist Fabián Cháirez, the piece sparked controversy on social media after it was posted.

Zapata’s grandson, Jorge Zapata González, said the painting “denigrates the figure of the general” and is harmful to the image of Mexican heroes.

He said some people wanted to go to the Palace of Fine Arts and burn the painting, “but we are respectful of the institutions and we are going conduct ourselves in the best way, but we are not going to allow the figure of the general to be denigrated.”

Accompanied by family and descendants of other revolutionary figures at a press conference outside the state government place in Cuernavaca, Morelos Palace, Zapata said that depicting the “Strongman of the South” in a homosexual way was disrespectful to the history of Mexico.

He said that without his grandfather, the “purest and most noble icon of the Revolution,” the very government employees that posted the painting wouldn’t have the jobs they have today.

“If General Zapata or General Villa hadn’t led the Revolution, these dimwits wouldn’t be in the spots they occupy today. And they’re repaying him by denigrating his image in a place as important as the Palace of Fine Arts?” he said.

He and others behind the proposed lawsuit aim to use the legal recourse to settle the dispute in a way that does not break friendly ties with the government of President López Obrador.

“We’re investigating what’s behind this and in the lawsuit we’re going to do everything necessary to avoid problems,” he said.

Zapata added that although there may be thousands of paintings that depict the general in various forms, such as the one by Cháirez, he believes that such a painting should not be exhibited in a place like the Palace of Fine Arts.

“People will respect General Zapata or we will make them respect him,” he said.

Sources: El Financiero (sp), Milenio (sp)

Death toll from ammonia spill in Guerrero rises to 9

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Scene of Friday's accident.
Scene of Friday's accident.

The death toll due to an ammonia spill near the border of Guerrero and Michoacán on the weekend has risen to nine.

The initial number was five but Michoacán Public Security Secretary Israel Patrón Reyes announced Monday that four more victims had died in hospital.

The spill occurred Friday night when a double-tractor-trailer transporting 30,000 liters of ammonia rolled over on the Siglo XXI highway near the Infernillo Dam at La Unión, Guerrero.

The victims were travelling aboard a bus that was forced to stop by the accident and became trapped in a toxic cloud of gas emitted by the tanker.

Among the dead is Eva Montiel García, a nursing student who got off the bus to treat exposed victims, many of whom survived, but she died hours later.

Also dead is a 2-year-old girl who was among several children who were exposed to the toxic chemical.

Patrón said a preliminary investigation indicated that mechanical failure was responsible for the crash.

Some of the victims reported that their insurance refused to cover the costs of treatment, but Michoacán Governor Silvano Aureoles Conejo said his administration is looking into the matter.

Aureoles added that 1,500 people in the community of Infernillo were evacuated to avoid exposure.

The Siglo XXI highway near the accident was reopened to traffic on Sunday.

Source: Milenio (sp)