Exploring the rise of Mexico’s craft beer industry

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September 30, 2023

02 Expo Cerveza Mexico (1) — Beers compete for recognition at national events such as Expo Cerveza. The fall edition is in Mexico City October 20-22. (Expo Cerveza)

Most of the world knows about Corona, Tecate and Dos Equis. These and other brands have made Mexico the world’s number one exporter of beer. However, over the past three decades, the country has developed a craft beer industry, which may have a similarly bright future.

A little history

Depending on your point of view, craft beer in Mexico is either centuries old or a recent phenomenon. In 1544, Alfonso de Herrero founded a brewery near Mexico City, but it failed a few years later. In the colonial period beer was an imported luxury good, and massive consumption only began in the 19th century when German immigrants established breweries. In the 20th century, many of these breweries became consolidated as the two brewing powerhouses of today: Grupo Modelo and Cervecería Cuauhtémoc Moctezuma (now legally Heineken México).

Beer brewed before mass-production is of course “craft beer” (cerveza artesanal in Spanish), although the term is modern.

Establishing “modern” craft beer in Mexico

Mass production led to a kind of homogenization in order to achieve mass appeal. A movement in the U.S. looked to revive more beer styles, and by the 1990s, American homebrewers, microbreweries and brewpubs were catching the attention of beer lovers in Mexico, says certified beer sommelier and beer historian Guillermo Ysusi.

Cerro Viejo not only makes various types a craft beer but also pairs those flavors with berries grown in the Lake Chapala area. (Leigh Thelmadatter)

“The consensus is that the first craft beer brewer [in Mexico] was Gustavo Rodríguez in Mexico City,” Ysusi says. Rodríguez discovered U.S. microbrews visiting Texas in 1993, purchasing a beer-making kit in 1995. Five years later, he opened Cosaco, which has been going strong ever since.

Other craft beer establishments appeared in the late 1990s and early 2000s, including Beer Factory in Mexico City, Sierra Madre Brewing Company in Monterrey and Minerva in Guadalajara. Despite their current fame, Baja California breweries would only get off the ground almost a decade later.

Ariette Armella of the Mexican Association of Craft Beer Brewers (Acermex) says that home brewing is still popular in Mexico, although there are no statistics available to back this point. She adds that many of the smallest microbreweries are run out of people’s homes.

Craft beer culture

Your best bet for finding U.S.-style brew pubs is in Mexico’s major cities, those with a strong brewing culture like Querétaro and Mexicali as well as major tourist areas such as Cabo San Lucas’s Baja Brewing Company establishment. (Leigh Thelmadatter)

Lacking strong ties to an agricultural region, craft beer is largely an urban phenomenon. Brewers and drinkers tend to be younger and more affluent, often drawn initially by the beverage’s ties to the U.S. and Europe.

According to Armella, “The U.S. is the reference point for quality for Mexican craft beers and there is significant cultural and professional exchange among brewers on both sides of the border.” Acermex and the Brewers’ Association, its U.S. counterpart, have created the Together We Brew program specifically to enable this.

Mexico City has the largest market for sales, but Baja California produces the most craft beer. Mexico City has a long history of adapting outside foodstuffs into its cuisine, while Baja’s brew scene overlaps with its wine, with both being carefully paired with its internationally recognized fine dining. Both areas now have beer sommeliers and other experts and both offer tours of breweries.

Mexican brewers are not simply reproducing U.S. beers but are also experimenting with “Mexicanizing” them, adding flavors such as cacao, regional fruits, chili peppers and more. Some of the more interesting twists include Falling Piano’s bread-flavored Day of the Dead beer, Gran Cerro Viejo beers flavored with berries from Lake Chapala, and yes, a cricket-flavored La Grilla from Querétaro.

Craft beer events have been growing in popularity over the past decade. The largest of these is the Expo Cerveza, held in Guadalajara in the spring and again in Mexico City in the fall (this year on October 20-22). Other important events include the Ensenada Beer Fest and the Festival de la Cerveza in Monterrey, but booths selling local craft beer can be found at smaller events all over Mexico.

Current craft beer market in Mexico

Despite 30 years of brewing, craft beer remains a very niche market in Mexico. Acermex estimates that Mexico’s 2,000 craft breweries produced 330,000 hectoliters (33,000,000 liters) in 2022. But it pales in comparison to the 141 million hectoliters produced in total that same year in Mexico.

About half of craft beer production is in the north. Baja California leads with 18% of Mexico’s total, followed by Nuevo León (13.8%). In the center of the country, most beer is produced in Jalisco (17%) and Mexico City (10.6%).

Despite a downturn during the pandemic years, the past decade or so has been good for the industry. More beers are available more widely. In some cases, like Cucapá, it is because they were bought out by one of the big brewers, but others like Tempus (Monterrey) and Minerva are expanding on their own. Acermex also states that about 5% of sales are now exported, with brands like Colima, Minerva, Ocho Reales, Rey, Loba, Hercules and Monstruo de Agua available in the U.S.

Challenges to the industry

However, establishing a market share where two companies sell over 90% of Mexico’s beer is not easy. The main issue is price. Cost-conscious Mexicans simply won’t pay double or triple the price of a commercial beer, says Montiel Hernández of Ayutla Distillery and Brewing.

Being more expensive to produce, craft brewers must market similarly to wine in finer restaurants and other outlets able to help customers make selections. Craft brewers must also compete with commercial brewers for supplies, malt in particular and often have to import. Water usage, especially in the arid north, is also an issue, which was aggravated by last year’s drought.

Twenty years ago, I tried my first craft beer in Mexico, finding it by chance as a curiosity. It’s safe to say that Mexican craft beer has now gone way past novelty and become a world worth exploring for beer lovers.

Leigh Thelmadatter arrived in Mexico over 20 years ago and fell in love with the land and the culture in particular its handcrafts and art. She is the author of Mexican Cartonería: Paper, Paste and Fiesta (Schiffer 2019). Her culture column appears regularly on Mexico News Daily.

Don’t call it a banana

By

Janet Blaser

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September 30, 2023

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Captura de pantalla 2023-09-29 a la(s) 10.28.17 — Plantains hold their own in all sorts of cooked dishes. (Unsplash)

The first thing you need to know about this starchy cousin to the banana is that it’s completely different from the yellow fruit favored by monkeys. Plantains, in Mexico, also called “maduros” or “plátano macho”, have a much higher starch content and need to be cooked before eating to bring out their natural sweetness. Once cooked, the texture and mouthfeel are like a slightly sticky potato but uniquely and irresistibly sweet.

I was in Jamaica the first time I had plantains cooked in a spicy beef stew with peppers, onion, and tomatoes. I’d assumed the chunks were potatoes and couldn’t figure out what they were. My host explained they were green plantains, used instead of potatoes, which don’t grow in the island’s hot tropical climate.

Once cooked, the texture and mouthfeel are like a slightly sticky potato but uniquely and irresistibly sweet. (Victor Kwashie / Unsplash)

Although plantains look similar to bananas, the skin is thicker and almost hard, with distinct ridges running lengthwise down the sides. Unripe plantains are bright green; they slowly turn yellow and then go completely black. Most likely you’ve seen them in stores and markets in all of these stages. As they ripen, the starches in plantains turn to sugars, and when cooked or fried, those sugars caramelize and become even sweeter. The texture changes too, and depending on how they’re cooked, plantains can be melt-in-your-mouth soft, delightfully crispy-crunchy, or a lovely tender-firm consistency.

Plantains are not at their best if eaten raw, although some claim raw plantains have anti-inflammatory benefits, plus lots of fiber and potassium. I’d say look for those things elsewhere: raw plantains aren’t palatable at all. They won’t kill you, but you won’t enjoy the experience either.

If you like to cook, I encourage you to play around with plantains. Once you get the hang of it, they won’t seem so intimidating. Know that, unlike a regular banana, the hard peel is not easy to remove. Cut off the top and bottom ends with a sharp knife, then score one section from tip to tip and pry it back carefully with the knife. Once you have one section off, the rest should come easier, and you can just use your fingers. Peeling gets a little easier when they’re riper, but you’ll still need to start with a knife. Inside, ripe plantains will be sticky and soft; when sautéed or fried, they will have pudding-soft insides and caramelized edges.

One of my favorite ways to eat plantains is grilled in brochetas (what we’d call shish kebabs), with bell peppers, tomatoes, and chunks of fish or shrimp. Packaged plantain chips are great to have in the kitchen and can be crushed and used for breading fish or poultry. And fried plantains at any stage of ripeness provide a delicious snack or side dish.

An easy, effortless way to enjoy plantains without the bother of cooking them yourself is to buy them already baked from a “camotero”—a street vendor selling roasted sweet potatoes and platanos machos, or plantains. Listen for the whistle of the rolling steam oven in the early evening and ask for an order of “platanos natural” or “sencillo.” That way they won’t be smothered in sweetened condensed milk, and you can do what you like with them.

Sweet Plantain Casserole. (Shutterstock)

Maduros en Gloria (Sweet Plantain Casserole)

8 oz. cotija cheese, crumbled
1/3 cup sugar
1 tsp. cinnamon
2 cups crema (creme fraiche)
1 Tbsp. cornstarch
5 large ripe sweet plantains
1 cup vegetable oil
Salt

Preheat oven to 375F (190C). In a bowl, mix cheese, sugar, and cinnamon; set aside. In another bowl, combine 2 Tbsp. crema and the cornstarch. Stir until cornstarch dissolves, then stir in remaining crema and set aside.

Cut off the ends of the plantains. Remove peels. Score lengthwise, then slice diagonally into ½ -inch thick slices.

Heat oil in a large skillet over medium heat until shimmering. Fry plantain slices in a single layer; cook until softened and deep brown, turning with a spatula, about 3 minutes per side. Transfer to a large paper towel-lined plate and season with salt.

Spread ½ cup crema in an 8×8-inch baking dish. Next, arrange 1/3 of plantains in a single layer, then sprinkle with ¼ of the cheese. Repeat with remaining crema, cheese, and plantains, finishing with cheese. Bake until bubbling and browned on top, about 20 minutes. Cool on a rack for about 10 minutes before serving.

Tostones

A popular side dish throughout Latin America and the Caribbean.

2 green (unripe) plantains
Vegetable or canola oil for frying
Salt to taste

Trim off the ends of the plantains and use a knife to cut a slit along the length of the plantain to easily remove the peel, carefully avoiding cutting into the flesh. If the peel is too firm, use a spoon to lift the edges. Slice plantain crosswise into 1-inch rounds, about 8 pieces per plantain.

In a large skillet, heat about ⅛-inch vegetable oil over medium. When hot, add the plantains. Fry until beginning to turn golden, about 1 minute per side.

Quickly transfer plantains to a cutting board. Working with one piece at a time, use a large flat-bottomed cup to gently press each plantain to about ½-inch thick. Keep it as centered as possible to flatten plantains evenly. Return flattened plantains to hot oil and pan-fry until golden brown, 1-2 minutes per side. Transfer to a paper towel-lined plate to drain. While hot, season with salt to taste. Serve immediately.

Sweet Plantain Fries

These are made with very ripe plantains and are quite different than the tostones above.

2-4 very ripe, blackened plantains
Vegetable or canola oil for frying
Salt

Cut off the ends of plantains, then cut a slit along the length of the plantains, avoiding cutting into the flesh. Remove and discard peels. Slice plantains in half crosswise, then quarter each piece lengthwise into 4 wedges. (Each piece should be about the size of a chunky fry.)

In a Dutch oven or deep cast-iron skillet, heat about 1½ inches of oil over medium. When oil shimmers, fry plantains in batches until golden brown, flipping carefully with a slotted spoon, about 3-6 minutes. Plantains should be caramelized and slightly crisp at the edges but still tender in the middle. Transfer to a paper towel-lined plate to drain. Season with salt. Serve immediately.

Janet Blaser is the author of the best-selling book, Why We Left: An Anthology of American Women Expats, featured on CNBC and MarketWatch. She has lived in Mexico since 2006. You can find her on Facebook.

Is Mexico missing out on the nearshoring opportunity?

By

MND Staff

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September 29, 2023

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Mexican skilled worker — As global supply chains have shifted, Mexico has come into the spotlight as a destination for investment. Is the country ready to capitalize on the opportunity? (Shutterstock)

There is no shortage of talk about the opportunity Mexico has to benefit from nearshoring.

Mexico is already positioned to profit from the growing desire of companies to move away from countries such as China and set up operations closer to their main market – the United States. Numerous foreign companies have recently announced plans to establish a presence here or expand their existing operations, while foreign direct investment (FDI) hit a record high of over US $29 billion in the first half of 2023.

Buildings under construction — Foreign direct investment, particularly in the north and central parts of the country, has spurred increased development. But some experts point out Mexico could be attracting more. (Shutterstock)

But some observers believe that Mexico runs the risk of missing its nearshoring opportunity, or at least not taking full advantage of it, for a variety of reasons, even though its proximity to the United States and its preferential trade status in North America thanks to the USMCA free trade agreement gives it a distinct advantage over other countries in the region that are also seeking to attract additional foreign investment.

A small group of such people recently identified factors they believe are hindering greater inflows of FDI and suggested ways in which the situation can be remedied. They expressed their views in response to questions put to them by the Inter-American Dialogue, a Washington D.C.-based think tank that primarily focuses on affairs related to the Western Hemisphere.

The think tank pointed out that investors committed US $225 billion to Latin American and Caribbean countries last year, but Mexico only secured 17% of that amount despite accounting for nearly a quarter of the region’s economic activity. It asked four experts why Mexico is “lagging behind” in attracting FDI and what factors would make the country more attractive in the “nearshoring trend.”

What’s holding Mexico back?

The ex-ambassador’s view:

Arturo Sarukhan, a member of the Inter-American Dialogue board and Mexico’s ambassador to the United States between 2007 and 2013, directs blame at the current federal government, which began its six-year term in late 2018.

Considering its geographical location and longstanding trade and economic integration with the United States, among other factors, Mexico “could be poised to singularly reap the benefits of a strategic sea-change and a once-in-a-generation opportunity,” Sarukhan said.

However, “the reality” is that Mexico is “unable to fully capitalize” because of the current policies of President López Obrador, he said.

Arturo Sarukhan. (Brookings Institution)

Sarukhan, who was ambassador during the government of AMLO’s nemesis Felipe Calderón, said that the concept of nearshoring is “increasingly being re-tweaked” in Washington as “ally-shoring or friend-shoring,” but he claimed that López Obrador “is behaving as anything but a friend or ally of the United States.”

In support of that view, the ex-ambassador cited AMLO’s position on “regional democracy and human rights,” his boycotting of the Summit of the Americas, “his posture on Russian aggression … [and] his habit of poking his finger in Biden’s eye at every opportunity.”

(Mexico condemned Russia’s invasion of Ukraine, but hasn’t imposed any sanctions on the aggressor. Sarukhan didn’t offer specific examples of how López Obrador has antagonized Biden, but Mexico is involved in USMCA-related disputes with the U.S., including ones over corn and energy policy.)

Sarukhan said that insecurity and “the growing shadow of organized crime” as well as López Obrador’s “energy and renewables policy paradigm” – in which state-owned firms are favored over foreign and private ones – are among other factors that are hindering FDI flows.

The analyst’s view:

Diego Marroquín Bitar, a senior research analyst in the global economy and development program at Washington D.C.-based think tank the Brookings Institution, said that Mexico has “solid macro fundamentals” and “unparalleled access” to the United States and Canadian markets thanks to the USMCA, the North American free trade pact that superseded NAFTA in 2020.

“However, geography and trade agreements alone fall short of fully harnessing the region’s FDI boom,” Marroquín said before citing four factors that “discourage further investment in the country.”

They were:

Significant setbacks in clean energy generation. (Marroquín said that clean energy generation is 5% lower than in 2018)
High levels of water scarcity.
Violence.
Rule of law issues (with several energy companies unable to operate due to permitting issues).

Marroquín also said that “deficient infrastructure … inflates costs relative to other nearshoring options (for example, Vietnam) and hampers market accessibility.”

He noted that Mexico ranks 66 out of 139 countries on the World Bank’s Logistics Performance Index.

The economist’s view:

Arnulfo Rodríguez, principal economist at BBVA Research, questioned whether Mexico has benefited from the nearshoring trend at all.

“Foreign direct investment flows into Mexico in 2022 explained by nearshoring appear to be just supported by anecdotal evidence. FDI data and the negligible market share gain of Mexico in the United States imports of manufactured goods since 2018 do not seem to back up the nearshoring story,” he said.

Rodríguez noted that FDI in 2022 was still below pre-pandemic levels “excluding the one-off investments of the Televisa-Univisión merger and Aeromexico’s restructuring” in the first half of last year.

He also noted that the majority of FDI last year was reinvestment of profits.

(That scenario was repeated in the first half of this year, with new investment contributing to just 7% of the FDI total, according to preliminary data from the Economy Ministry.)

Rodríguez said that Mexico has been unable to capitalize on an opportunity to gain a greater foothold in the United States market for imported goods.

Mexico “could not take advantage of the 5.5 percentage points lost by China in the aftermath of the pandemic and trade war with the United States. Indeed, Mexico just gained 0.4 percentage points between 2018 and 2022 while Vietnam and Taiwan won 2.3 and 1.2 percentage points, respectively,” he said.

(The value of Mexico’s exports – most of which go to the U.S. – increased 3.8% annually in the first eight months of the year, and Mexico is now its northern neighbor’s largest trade partner.)

The academic’s view:

Lucinda Vargas, an economics professor at New Mexico State University and associate director of its Center for Border Economic Development, took a much more positive view of Mexico’s performance in attracting foreign investment.

She noted that investment in Mexico’s maquiladora industry reached a record high of US $14 billion last year, and said that was “chiefly the result of the nearshoring impetus.”

Vargas argued that “the dynamics of foreign direct investment in Mexico are best analyzed by looking at the performance of its maquiladora export manufacturing industry.”

“This industry,” she added “has two characteristics that are especially conducive to growth in the context of nearshoring: maquiladoras are largely located in Mexico’s northern border right next to the United States, and … [the sector’s] top foreign direct investor is the United States, the world’s largest consumer market.”

What does Mexico need to change to attract more investment?

Arturo Sarukhan:

The former ambassador believes that Mexico’s next president and government need to make significant policy changes in order for the country to seize the nearshoring opportunity.

“Regardless of who wins in 2024, a U-turn is urgently needed if Mexico City is serious about tapping into this potential,” Sarukhan said.

Diego Marroquín:

Marroquín asserted that “Mexico’s first female president, whether it is Morena party candidate Claudia Sheinbaum or Broad Front for Mexico candidate Xóchitl Gálvez, must confront the challenges he identified “head-on if they wish to transform Mexico’s current FDI stream into an FDI tsunami.”

“Without immediate action on energy, security, infrastructure, rule of law and water management, Mexico will once again become the land of (missed) opportunities and fall short of its true potential,” he said.

Arnulfo Rodríguez:

Rodríguez expressed a similar view to that put forward by Marroquín.

“To be more attractive for nearshoring opportunities and reap more economic benefits in the medium term, Mexico needs a strong rule of law along with industrial, energy and fiscal policies that promote a new wave of investments associated with electric vehicles, renewable energy and IT equipment,” he said.

Lucinda Vargas:

Vargas indicated that she believes Mexico is already in a good position to attract additional foreign investment. Mexico’s FDI growth in recent years (investment grew in 2021 and 2022 after a pandemic-induced decline in 2020) is due to “a combination of its entrenched maquiladora industry, its next-door proximity to the United States and nearshoring trends,” she said.

Those factors, Vargas added, “are likely to keep this investment growing into and past the 2024 election.”

What is President López Obrador’s view?

Despite criticisms about some government policies, AMLO has frequently described investment conditions in Mexico as “unbeatable.”

“Mexico is among the countries … with the most advantages for foreign investment because it has a trade agreement that allows what is produced in Mexico to be exported to the United States and Canada [tariff-free]. That’s why a lot of investment is arriving and the forecast is that Mexico is going to grow a lot more than other countries,” he said in March.

Speaking at his morning press conference on Wednesday, López Obrador attributed the record high FDI in the first half of the year to the impact of the USMCA, which took effect during his second full year in office.

“Our adversaries think that the transfer of companies to Mexico began developing naturally, that it was a spontaneous thing. No, it had to do with the [free trade] agreement that was reaffirmed in the times of President Trump. It was work we did, it wasn’t easy,” he said.

After data showing FDI growth was released last year, López Obrador said that “foreign investment arrives when there is an authentic rule of law, when there is stability, when there is governability, when there is honesty.”

He has also cited “healthy public finances” and the autonomy of the central bank as factors that have attracted investors and touted the “competitive advantages” of doing business in Mexico, among which are affordable labor costs, the presence of a large educated workforce and proximity to the United States.

Mexico News Daily

US delegation to visit Mexico to discuss the fight against fentanyl

By

MND Staff

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September 29, 2023

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Visita Antony Blinken-1.jpg — A delegation led by Secretary of State Antony Blinken will visit Mexico to discuss binational efforts to combat the fentanyl crisis. (Moisés Pablo Nava/Cuartoscuro)

A delegation of United States government officials led by Secretary of State Antony Blinken will travel to Mexico City next week for the 2023 U.S.-Mexico High-Level Security Dialogue (HLSD).

United States Secretary of Homeland Security Alejandro Mayorkas, Attorney General Merrick Garland and other high-ranking U.S. officials will join Blinken at the Oct. 5 meeting with Mexican officials including Security Minister Rosa Icela Rodríguez and Foreign Affairs Minister Alicia Bárcena.

Foreign Affairs Minister Alicia Bárcena (L) and Security Minister Rosa Icela Rodríguez (R) will attend the U.S.-Mexico High-Level Security Dialogue (HLSD) on Thursday, Oct. 5. (Presidencia/Cuartoscuro)

“Through this dialogue, the United States and Mexico will discuss joint implementation of the U.S.-Mexico Bicentennial Framework for Security, Public Health, and Safe Communities,” the U.S. State Department said in a statement.

The statement noted that Blinken will also meet with President López Obrador during his visit to Mexico City.

Efforts to combat the trafficking of fentanyl will be a central focus of the HLSD meeting in Mexico City.

In a special briefing to journalists on Thursday, an unnamed senior White House official noted that “synthetic drugs are the number one killer of Americans aged 18 to 49,” with synthetic opioids such as fentanyl involved in two-thirds of 110,000 overdose deaths in the United States last year.

President Andrés Manuel López Obrador continues to push back on claims about Mexico’s responsibility for the United States’ fentanyl crisis ahead of the bilateral meeting. (Presidency/Cuartoscuro)

At the High-Level Security Dialogue, the United States and Mexico “will continue exploring ways to cooperate on law enforcement efforts, information sharing, private sector engagement, and training to combat the synthetic drug threat and the diversion of precursor chemicals used in production of synthetic drugs,” the official said.

“We’ll also be working to expand public awareness campaigns on the risks of fentanyl through the Bicentennial Framework’s binational … public panel of experts on mental health, substance use, and addiction.”

The official said that U.S. and Mexican government representatives will also discuss ways to “expand cooperation on building capacity in Mexico to dismantle transnational criminal organizations’ financial networks, target human smuggling operations, and expand prosecution for arms trafficking.”

The head of the United States Drug Enforcement Administration, Anne Milgram, asserts that the Jalisco New Generation Cartel and the Sinaloa Cartel pose “the greatest criminal threat the United States has ever faced” given the large quantities of narcotics, including the powerful synthetic opiod fentanyl, they ship to the U.S.

The United States government has placed sanctions on numerous Mexicans allegedly involved in producing and trafficking fentanyl, action that the White House official highlighted at Thursday’s briefing.

The official said that the United States and Mexico have “excellent cooperation” on a range of security issues including the fight against fentanyl. That view is far from a universal one in the United States.

Mexican officials have highlighted on numerous occasions the government’s commitment to stanching the flow of fentanyl and other narcotics to the United States, but many Republican Party lawmakers argue that López Obrador and his administration aren’t doing enough to address the problem.

That belief – expressed by people such as Senator Lindsey Graham and Florida Governor Ron DeSantis – was acted upon Thursday in the United States House of Representatives, where a proposal to amend a bill to cut off some US $60 million in funding to Mexico due to its alleged lack of willingness to combat fentanyl production and trafficking attracted sufficient support to pass.

“Mexico should not be rewarded with economic support funding when they refuse to stop the production of fentanyl that has killed hundreds of thousands of Americans,” said Representative Alex Mooney, who proposed the amendment to cut Economic Support Fund (ESF) resources to Mexico.

“… A lot of the poison on our streets can be traced directly back to Mexican drug cartels. We need to secure our border but we also need Mexico to partner with us. Our practice of giving them more United States taxpayers’ dollars as an inducement to fight against drug trafficking has failed. It is time to cut off economic funding until the president of the United States can report to Congress that Mexico is working with us to address the flow of fentanyl across the border,” the Republican Party lawmaker said before the vote on his proposal.

This week, Republican Representative Alex Mooney of West Virginia proposed cutting current economic support to Mexico until it demonstrates progress on the issue. (@RepAlexMooney/X)

The ESF funding to Mexico won’t be cut off unless Mooney’s amendment passes the U.S. Senate, which is controlled by the Democratic Party.

López Obrador on Friday dismissed Mooney’s proposal as electorally-motivated propaganda.

As elections will be held in the United States in 2024, parties and individuals aspiring to elected office use “delicate matters” such as “harm caused by fentanyl” and “the migration issue” for “political purposes,” he said.

“It’s vile and ordinary propaganda, we shouldn’t take it seriously, it’s just publicity to try to fool United States citizens,” López Obrador said.

He said that politicians in the U.S. are becoming increasingly “more daring” in threats they make toward Mexico.

“They’ll get to the point of saying they’re going to bomb Mexico or laughable things like that. They’re ridiculous,” López Obrador said.

At the 78th session of the United Nations General Assembly, Foreign Minister Bárcena recognized Mexico’s role in the illegal drug trade and reported a tenfold increase in fentanyl seizures in the last five years. (gob.mx)

“… They’re making a big fuss because they’re not going to give us $50 million. We’re not asking for anything. It’s just politicking,” he added.

As he has done before, López Obrador offered some free advice to United States lawmakers about how to combat the fentanyl crisis.

“Attend to your young people guaranteeing them three things: education – education should be free in the United States; work; and thirdly, love, so they don’t use fentanyl. That’s what you should be doing, not blaming us,” he said.

With reports from Reforma and El Universal

Mexican photographer Graciela Iturbide wins lifetime achievement award

By

Cat Rainsford

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September 29, 2023

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Graciela Iturbide Exposición Viven Arena-3 — Graciela Iturbide, 81, is recognized worldwide for her intimate portraits of Indigenous communities of Mexico. (Mario Jasso/Cuartoscuro)

Mexican photographer Graciela Iturbide has won the prestigious William Klein Prize from the French Academy of Fine Arts, honoring her decades of work capturing Mexican culture and Indigenous communities.

Starting in 2019, the William Klein Prize is awarded every two years to a photographer from anywhere in the world, and assesses artists’ career and commitment to photography. Previously, it was awarded to Raghu Rai (India) and Annie Leibovitz (USA).

Iturbide gives Mexico City Culture Minister Claudia Curiel de Icaza a tour of her most recent exhibit at the Archive Museum of Photography (MAF) in June. (Mario Jasso/Cuartoscuro)

The 120,000-euro (US $132,000) prize money will be awarded to Iturbide in a ceremony at the Palais de l’Institut de France in Paris on Oct. 18.

“[Iturbide] is an icon of photography in Latin America,” the Academy said in a statement. “For more than five decades, she has created images that navigate between a documentary approach and a poetic sensibility.”

Born in 1942, Iturbide trained under the iconic Mexican artist Manuel Álvarez Bravo and has worked in countries across the world, including Cuba, East Germany, India, Madagascar, Hungary, France and the United States. She is most well-known for her documentation of Mexican culture, particularly her projects about the Seri Indigenous people of the Sonoran Desert and the women of Juchitán de Zaragoza, Oaxaca.

Iturbide’s portraits of the Seri were part of a commission she received in 1978 from the Ethnographic Archive of the National Indigenous Institute of Mexico. She lived in the 500-person Seri community of Punta Chueca for two months while completing the project.

A 2013 exhibit in Bratislava of Iturbide’s classic black and white photographs. (Wikimedia Commons)

“I lived with them in their homes so they would see me always with my camera and know that I am a photographer. In this way, we were able to become partners,” she later said.

A year later, she undertook a similar project in the Zapotec Indigenous community of Juchitán de Zaragoza, Oaxaca, which is known for elevating women to positions of authority. She returned to the community multiple times over the following decade, eventually publishing her powerful photographs in the book “Juchitán de las Mujeres” in 1989.

Iturbide has described her relationships with her subjects as a fundamental part of her art, sometimes requiring her to pass up photographic opportunities to respect an interpersonal moment. “To me, it’s more important to get to know the worlds I travel in,” she has said. “This knowledge is so attractive that the photography almost takes second place.”

The Academy recognized this deeply sensitive approach in awarding her the William Klein Prize, saying: “Photography for [Iturbide] is a ‘ritual’ in which she strives to capture the most mythical part of man.”

With reports from Milenio

When and where will the upcoming solar eclipse be visible in Mexico?

By

MND Staff

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September 29, 2023

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Millions of people in the Americas will be able to witness an annular solar eclipse on Saturday, Oct. 14, as the moon will partially cover the face of the Sun.

Weather permitting, the eclipse will be visible in many parts of Mexico.

Eclipse watchers — People living in Mexico will be able to see the annular eclipse on October 14. (Adam Smith/Unsplash)

What is an annular solar eclipse?

An annular solar eclipse happens when the moon passes between the Sun and the Earth when the Sun is at the farthest point from Earth.

Unlike a total solar eclipse, the moon doesn’t completely cover the Sun because it is so far away and therefore seems smaller. As a result, the moon appears as a dark disk with a glowing halo, creating what looks like a ring of fire around the moon.

Where will the Oct. 14 eclipse be visible?

A map of the eclipse's path — The timing and percent of the sun obscured will vary from place to place. (Great American Eclipse)

The eclipse will be visible along a narrow path that crosses the U.S. from Oregon to Texas, passing over Mexico Belize, Guatemala, Honduras, Nicaragua, Costa Rica, Panama, Colombia, and Brazil. Other parts of the Americas — from Alaska to Argentina — will see a partial eclipse.

In Mexico, the eclipse will be at its maximum phase in the states of Yucatán, Quintana Roo and Campeche. The cities of Campeche and Chetumal, Quintana Roo, will offer budding astronomers the best chance to experience the eclipse in full.

What time does it start in Mexico?

In most parts of the country, people will see a partial solar eclipse visible at different times, from 8:09 a.m. to 2:17 p.m. local time.

This map shows the time of maximum penumbral eclipse (the peak) in Coordinated Universal Time (UTC). The purple lines show the eclipse’s peak time across the Americas and the yellow band crosses the places where more than 90% of the sun will be covered during the peak. (Great American Eclipse)

In Campeche, the eclipse will begin at 9:45 a.m., reaching its peak at 11:24 and ending at 1:09 p.m. The annularity will last 4 minutes and 35 seconds.

In Chetumal, the phenomenon will start at 10:51 a.m., peak at 12:31 p.m., and end at 2:17 p.m., with a maximum duration of 4 minutes and 21 seconds.

How should I prepare to watch an eclipse?

Because the Sun is never entirely blocked by the moon during an annular solar eclipse, it is unsafe to look at it directly without appropriate eye protection as it can lead to eye injury or blindness.

Solar eclipse watching — It is important to always use protection when viewing a solar eclipse, to prevent permanent eye damage. (U.S. National Park Service/NASA)

For those wanting to watch directly, experts recommend always looking through safe solar viewing glasses or a safe handheld solar viewer.

Watching the eclipse through sunglasses, camera lenses, binoculars, or a telescope without a special-purpose solar filter over the front of the optics can cause severe eye injury.

With reports by Reuters and Time and Date

Gas prices creep up as fuel subsidies reduced for second consecutive week

By

MND Staff

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September 29, 2023

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Close up of two handles on a gas pump — Regular gasoline will cost an average of 22.36 per liter this week, down from an all-time high of 22.41 earlier this month. (Shutterstock)

The Mexican Finance Ministry (SHCP) has announced a further reduction in fuel subsidies, leading to continuing high prices for gasoline and diesel in Mexico.

For a second consecutive week, the SHCP has reduced a federal fuel subsidy used to offset the IEPS excise tax, , the SHCP said, resulting in an increase in gas prices.

Mexico’s largest carrier, Fuel costs represent about 35% of operating costs at Volaris, Mexico’s largest air carrier. The company has seen shares fall 25% this year. (CC BY-SA 4.0)

Subsidies on “Magna” — premium fuel — have reduced from 53.3% to 47.2%, while regular gasoline has gone from 31.9% to 26.1%. Diesel saw the smallest drop in support, down 0.9% to 57.15%.

As a result, the average price of regular gasoline will reach 22.36 per liter, down slightly from the all-time high of 22.41 between Sept. 15 to 18. Premium gasoline — greater than 91 octane — will cost 24.65 per liter, according to industry consultants PETROIntelligence.

Higher fuel prices have presented challenges to Mexican businesses. Low-cost airline Volaris, Mexico’s largest carrier, has seen shares fall 25% this year. Fuel costs represent around 35% of all operating costs at the airline according to company reports.

Transportation firms Grupo México Transportes and Traxión have also seen costs rise in line with fuel prices, although unlike Volaris, this has not had a negative impact on share price.

A red train painted with the word "Ferromex" on a track. — Higher fuel prices have impacted transportation businesses like Ferromex, owned by Grupo México Transportes. (Wikipedia CC BY-SA 3.0)

IEPS is paid on every liter purchased by consumers, and to avoid volatile prices, the SHCP establishes a fixed price every week, based on the international oil market and logistical costs. Current prices will remain in effect until Oct. 6, when the SHCP will review the subsidies once again.

The rise in gasoline prices comes as a result of global supply issues after major producers Saudi Arabia and Russia reduced their output.

With reports by Milenio and El Economista

Bank of Mexico announces decision to hold interest rates stable

By

MND Staff

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September 29, 2023

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The Bank of Mexico building in Mexico City — The Bank of México (Banxico) headquarters in Mexico City. (Shutterstock)

The Bank of Mexico’s key interest rate remains at 11.25% after the governing board unanimously decided to maintain the record high rate at a monetary policy meeting on Thursday.

It was the fourth consecutive meeting at which the central bank’s board members decided to leave rates unchanged due to ongoing inflationary pressures.

GTO market — The bank said Mexico’s labor market has remained resilient, keeping the economy strong and inflation low. (Jezael Melgoza/Unsplash)

Banxico, as the bank is known, noted in a statement that annual headline and core inflation rates have continued to decrease since its last monetary policy meeting in early August.

“However, they are still high, as they registered 4.44% and 5.78%, respectively, in the first fortnight of September,” the bank said.

It also noted that “economic activity shows resilience and the labor market remains strong.”

Those factors could contribute to inflationary pressures as could elevated public spending on infrastructure projects in 2024.

Corn on grill in Mexico — A “very complex” inflation outlook — particularly around the cost of agricultural exports on the international market — has led regulators to keep interest prices fixed. (Depositphotos)

Banxico described the inflation outlook as “very complex,” noting that there are a range of upside risks to its projection that inflation will converge to its 3% target in the second quarter of 2025.

They include “foreign exchange depreciation due to volatility in international financial markets” and “pressures on energy prices or on agricultural and livestock product prices.”

The central bank anticipates that inflation will be higher than it previously forecast at the end of this year and in 2024. It sees headline inflation at 4.7% in the final quarter of 2023, up from a 4.6% projection in early August, and anticipates rates of 4.4% and 4% in the first and second quarters of 2024.

Banxico’s previous forecast had headline inflation at 3.7% in Q2 of 2024 and 3.1% in the final quarter of next year. It now anticipates a 3.4% rate at the end of 2024.

500 Peso notes — The peso reached 17.57 against the U.S. dollar after the announcement, later reaching 17.38. (Crisanta Espinosa Aguilar/Cuartoscuro)

“In order to achieve an orderly and sustained convergence of headline inflation to the 3% target, [the board] considers that it will be necessary to maintain the reference rate at its current level for an extended period,” the bank said, repeating a message it conveyed in previous statements after board members decided to maintain the 11.25% rate.

The latest decision to keep rates on hold was widely expected, with all 23 economists surveyed by Bloomberg predicting it.

Some analysts have predicted an initial cut to the 11.25% rate at Banxico’s final monetary policy meeting of 2023 on Dec. 14. But Marco Oviedo, a senior strategist at XP Investimentos, said that the new inflation forecasts will mean that “the central bank will be very patient.”

“I do not discard any changes in the rate until elections take place — after June,” he said, referring to the presidential and congressional elections that will take place in Mexico on June 2, 2024.

Morena aspirants for 2024 nomination — Some analysts believe rates will remain consistent until after the upcoming presidential election in June 2024. (CNM/X)

The Bank of Mexico raised its benchmark rate by 725 basis points during a hiking cycle that began in June 2021 and didn’t end until its decision in May to maintain the 11.25% level.

Its decision to hold the rate at a record high through four monetary policy meetings differs from those of some other central banks in Latin America that have begun cutting rates as inflation eases. The central banks of Brazil, Chile and Peru are among those that have lowered borrowing costs.

Bloomberg reported that the Mexican peso strengthened to a session high of 17.57 to the US dollar on Thursday “after the central bank’s comments reinforced the view that it won’t begin its easing cycle until next year.”

Shortly after 9 a.m. Mexico City time on Friday, the peso had strengthened to 17.38 to the greenback. The significant difference between Banxico’s benchmark interest rate and that of the United States Federal Reserve (currently 5.25-5.5%) is cited as one factor that has contributed to the peso’s appreciation of over 10% against the US dollar this year.

With reports from Bloomberg

Why leave Los Angeles to start a life in San Miguel de Allende?

By

Henrietta Weekes

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September 29, 2023

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@javierblanco.foto_7331 (1) — Together with The Clark Group brokered by Agave Sotheby's International Realty: Ezra and Sheryl Clark and their family in San Miguel de Allende.

Leaving the Grind of Los Angeles For a Fresh Start

For several years, Sheryl and Ezra Clark had been searching for the perfect new spot. They were ‘on that hamster wheel’ in Los Angeles, with Sheryl working in economic litigation consulting and Ezra in real estate, and were ready to take the plunge.

In 2017, they visited San Miguel de Allende with close friends for July 4th weekend, and on the flight home to California, they were convinced they had found their place to call home – in the vibrant colonial town nestled in the heart of Mexico, which has become a magnet for young entrepreneurs and families.

Ezra had been working at the Beverly Hills branch of Sotheby’s International Realty and on their last day in Mexico, they had visited the San Miguel office.

“We both had immediate synergy with the brokers, Larry Stebbins and Adrian Toscano there,” Sheryl says. Having lived in Querétaro and Mexico City as a younger man, Ezra spoke decent Spanish.

“It was not my field, but they offered us both a place to start our real estate business!” Sheryl continues. “It felt like divine intervention when we found San Miguel. Everything lined up.”

From the moment they arrived in San Miguel, they felt as though their senses had been revived. They walked the beautiful cobblestone streets and soaked up the slower rhythms of life, having felt depleted by the big city living. “I remember the bread store on Hernandez Macias,” Sheryl says. “When was the last time we smelled freshly baked bread wafting on the breeze?”

Becoming Entrepreneurs: Creating The Clark Group

Living in a new country is an educational experience like none other, where every day brings new discoveries: food, culture, people, and places. Setting up a business means finding the right legal help and financial advice and getting acquainted with Mexican customs, ideologies, and etiquette.

The Clarks were serious professionals in their fields, so it was somewhat of a risk to change the blueprint of their daily lives. “We had a wedding in Cabo on October 15th, so we pinned our move date to San Miguel, rented a place for a few months and rented our house in Los Angeles for a year.” They immediately found their rhythm of life was different.

In 2020 they found they had the luxury of time to restructure their business, discovering what they wanted as a partnership and joint CEOs. (San Miguel de Allende / Unsplash)

“Starting this new venture, we needed to build our business from the ground up,” says Sheryl. “But,” she continues, “it was exhilarating, challenging, fun – burning the midnight oil, diving into the eclectic and vibrant small town social scene and working round the clock. It was a great ride for us!” In the tight-knit community of young professionals and retirees, they garnered their business clients and forged firm new friendships.

In 2020, the first year of the pandemic, they found they had the luxury of time to restructure their business, discovering what they wanted as a partnership and joint CEOs. They had arrived right before San Miguel really took off on a global scale. After that first pandemic year, they noticed a whole different level of service, a raising of the bar, which The Clark Group very much represents. Their incessant dedication to fine-tuning every aspect of their chosen business would pay off.

The Clark Group, consisting of 4 principal agents and 3 supporting staff, is a highly reputable real estate team known for their dedication to hard work, addressing challenging questions, and delivering top-notch service.

Navigating Parenthood and Mexican Healthcare

By their second year, they had expanded their business team, acquired two puppies, and enjoyed the freedom to explore different neighborhoods. They had been living in Centro, but with the arrival of their son, they needed green grass and more space.

Sheryl had been with her company for 15 years in Los Angeles. “I left a firm that felt like family with ALL the medical benefits,” she says. But she found the prenatal healthcare in San Miguel impeccable, working out a robust birth plan and opting for Star Medica Hospital, Querétaro for the birth. However, due to COVID-19, she wanted to stay close to home and switched to MAC Hospital, San Miguel. “We also have doctors who do house calls!” she says. “In Los Angeles, the doctors had you on the clock!”

The support systems post-birth also proved to be exceptional. “We have always had the best nannies. Mexican women are maternal and love being around children. It is part of their culture.”

Sheryl reflected on the staff they had hired over the years. “They become part of your family, and that is part of the culture too. It does not feel transactional, but more like an extension of family.”

Sheryl agrees that life was more stressful in the U.S. and that San Miguel has enriched their lives. (@javierblanco.photo)

They reiterate that the level of care and cost-effectiveness of raising a young child alone would prevent them from moving back to the U.S. Through their network, they have also found their ideal family dentist, where it’s easy to get an appointment and even easier on the wallet.

San Miguel’s Community: “We Figure it Out Together”

Sheryl and Ezra, as part of The Clark Group, are seeing a whole different caliber of people moving to San Miguel with the means to invest. “Some clients are even buying US $3 million homes for their young family!” With the weakening of the dollar, many are moving their money out of the U.S. to diversify their investments and might even choose to spend only 3-6 months of the year in Mexico.

Moreover, a large number of new residents are taking the plunge to move permanently, either working remotely or setting up their own enterprises like the Clarks.

Their son, now 3 years old, has been attending one of San Miguel’s finest schools and Sheryl is truly excited to be raising him to be bilingual. He is set to go to Querétaro, Mexico City or abroad for high school. Even though there are many unknowns about his further education, they both feel confident they will figure it out.

“Sometimes I worry I am making the wrong decisions. But the community here is strong. We figure things out together.”

“Sure,” she says, “realistically there are some disadvantages. When it comes to activities for children, Mexico is lacking in comparison to what they were used to in Los Angeles. We have to forego American football and other sports. We have other options for children, such as soccer, tennis and swimming, as well as some outdoor family activities” – her son’s favorite being the pool and multiple slides at Xote, a water park.

Despite the unknowns, they love the feeling of being creative, more spontaneous, and adventurous; part of a group of young trailblazing families.

Together with The Clark Group brokered by Agave Sotheby’s International Realty.

For the last year, the family has been living in a beautiful countryside residential community just outside of town, which boasts golf, paddle tennis, a pool and a gym. “Now we have our son, safety is even more important,” says Sheryl. They are happy living among Mexican and expat families, walking their dogs, and taking life at a more relaxed pace than their frenetic beginning years. On balance, she agrees that life was just more stressful in the U.S. and that San Miguel has enriched their lives.

It has never felt easier to pack up and try living somewhere new. With the world at our fingertips, the question is not so much if one should try living in another country but where to live abroad. The Clarks epitomize the spirit of adventure and what is possible if you choose Mexico as your new home. Sheryl remarks, “Our life has become our adventure. Nothing compares to what’s next!”

Mining industry says canceling lithium concessions is not legal

By

MND Staff

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September 28, 2023

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shutterstock_2340885307_850 — Separation ponds at a lithium mine in Chile's Atacama Desert. Mexico has yet to mine any lithium. (Shutterstock)

Canceling lithium mining concessions held by a Chinese company is against the law, the president of the Mexican Mining Chamber (Camimex) said Wednesday.

In a document sent to investors in late August but which wasn’t reported on until this week, Ganfeng Lithium – which holds concessions to mine lithium at a large reserve in Sonora – said it had been advised by Mexico’s General Directorate of Mines that it had failed to meet minimum investment requirements between 2017 and 2021.

Jaime Gutiérrez, president of the Mining Chamber of Mexico. (Camimex)

According to a Reuters report, Ganfeng said in a filing that Mexico’s mining authorities had issued a notice to its local subsidiaries indicating nine of its concessions had been canceled.

However, President López Obrador indicated that wasn’t the case on Thursday, telling reporters at his morning press conference that the cancellation was still under consideration.

The concessions – which were awarded before the 2022 nationalization of lithium – are being reviewed “legally,” he said.

“But we’ve taken the decision that lithium belongs to the nation because it’s a strategic mineral,” López Obrador said.

AMLO at Sonora press conference on lithium — According to mining industry representatives, the nationalization of lithium should not retroactively affect concessions. (Alfonso Durazo Twitter)

Camimex president Jaime Gutiérrez said that canceling Ganfeng’s concessions – a process the Economy Ministry reportedly began in August – cannot be done because a reform to the federal Mining Law that nationalized lithium in April 2022 isn’t retroactive.

“The validity of the possible cancellation will have to be looked at,” he said during the presentation of a Camimex report.

“It’s not yet done, it’s still in development because the law can’t be considered retroactive. I don’t believe it’s possible to cancel the concessions,” Gutiérrez said.

He said that Mexico needs to issue concessions to exploit lithium reserves because the state, via the Mexican Geological Service, “doesn’t have the sufficient capacity or budget” to mine the alkali metal.

Most of Mexico’s potential reserves are in clay deposits that are technically difficult and expensive to mine. No lithium has yet been mined in Mexico, but the government – which has created a state-owned lithium company and established its own lithium reserve in Sonora – has high hopes for the industry.

The Finance Ministry has estimated that lithium reserves in Sonora – where the countries largest potential deposits are located – could be worth as much as US $600 billion. There are smaller deposits in other states including Baja California, San Luis Potosí and Zacatecas.

Lithium is highly sought after because it is a key component of lithium-ion batteries used for green energy storage and can thus play an important role in the transition to clean energy.

With reports from El Universal, La Jornada and Reuters