Sunday, October 12, 2025

US sanctions the ‘Malas Mañas’ criminal group based in Sonora

By
Cat Rainsford
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Malas Mañas members
The Malas Mañas organization is said to collaborate with the Sinaloa Cartel in trafficking drugs and smuggling undocumented migrants into the U.S. (U.S. Department of Treasury)

The United States Department of the Treasury is clamping down on migrant trafficking over the Mexican border, announcing new indictments and sanctions against the Sonora-based criminal organization known as the “Malas Mañas.”

According to a Treasury press release, the group is commanded by Sergio Valenzuela Valenzuela, plaza boss for the infamous Sinaloa Cartel.

Members of the gang operate on both sides of the Mexico-U.S. border. (Los Pennys/Youtube)

Their human smuggling operations move undocumented migrants, mostly from Guatemala and El Salvador, across the border into Phoenix and Tucson, Arizona. They also collaborate with the Sinaloa Cartel to distribute drugs including fentanyl and methamphetamine in the United States.

“Through whole-of-government efforts targeting cartels and smugglers like the Malas Mañas, we are disrupting the illicit financial networks of criminals who profit off of vulnerable migrants and devastate our communities with fentanyl and other dangerous narcotics,” said Homeland Security Secretary Alejandro N. Mayorkas. 

Formed in 2016, the Malas Mañas now have members – including enforcers – on both sides of the Sonora-Arizona border. 

The sanctions specifically target group members Luis Eduardo Román Flores and Joel Alexandro Salazar Ballesteros. This freezes any assets they have in the U.S. and blocks any U.S. citizens from doing business with them.

According to the U.S. Treasury, Román works for his imprisoned brother – Malas Mañas’ founder Jorge Damian Román Figueroa, alias ‘El Soldado’ – who was sanctioned in Sep. 2021 and arrested in Nogales, Sonora a month later. Román allegedly oversees the gathering of migrants, sets smuggling prices, uses social media to coordinate smuggling arrangements, and receives payments on behalf of the organization.

Salazar is accused of managing the Malas Mañas’ finances and distributing fentanyl, cocaine and methamphetamine in the U.S.

The sanctions were announced on the same day as an 11-count indictment against five members of the Malas Mañas, which was delivered in Tucson by the U.S. Justice Department on Nov. 29. In addition to the three sanctioned individuals, the indictment also names Manuel José Bernal and Jesús Armando González-Villela on

various charges related to human smuggling, drug trafficking and money laundering. The most serious of the charges carry a minimum jail term of between ten years and life, and a fine of up to US $10 million.

“The facts alleged here illustrate the breadth and diversity of the harmful actions by transnational criminal organizations,” said U.S. Attorney Gary Restaino. “This case isn’t about just guns, or drugs, or aliens. In our continuing efforts to safeguard and bolster border communities, we look forward to establishing the interconnectedness of these three related crimes.”

With reports from Tucson Sentinel

Japanese investment in Mexico predicted to expand in 2024

By
Cat Rainsford
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Japanese Ambassador Noriteru Fukushima praised Mexico's development and hailed nearshoring as a major economic opportunity for the country. (Mario Jasso/Cuartoscuro)

Nearshoring is expected to increase Japanese investment in Mexico by up to 66% in 2024, according to Noriteru Fukushima, Japan’s ambassador to Mexico.

Speaking during the 33rd Mexico-Japan Business Plenary Meeting, Fukushima said that Japanese companies had invested US $2.4 billion in Mexican plants in 2023 and are expected to invest between $3 and $4 billion in 2024.

Nissan
Japanese companies are on track to invest between $3 and $4 billion in 2024, taking advantage of Mexico’s proximity to the United States. (Margarito Pérez Retano/Cuartoscuro)

“Many from Japan want to know what is happening in Mexico, what’s going to be done in Mexico, what Mexico is going to be like because many companies are coming because of nearshoring,” Fukushima said.

He added that he had explained the strong economic momentum in Mexico so frequently that investors are “tired of hearing those projections.”

“We are reporting in Tokyo that Mexico has power … so I want the people of Tokyo to understand that reality,” Fukushima said.

Large Japanese investments announced in Mexico this year include a $200 million Kawasaki motorcycle factory in Nuevo León and a $328 million upgrade of a Toyota plant in Guanajuato, equipping the factory to build hybrid trucks.

Toyota Guanajuato
Toyota manufactures hybrid Tacoma trucks at their Guanajuato site, which has recently received further investment to increase output. (Cuartoscuro)

Fukushima claimed that Japan has always been the fourth-largest foreign investor in Mexico, after the United States, Canada and Spain. In the first nine months of the year, Japan was the fifth-largest origin country for FDI in Mexico, however, in a roundup by the Economy Ministry (SE) of the $106 billion of investment projects announced this year,  Japan did not make it into the list of top 10 investing countries.

This could be set to change in the near future. During her addresses to the Plenary, Melba Pría, Mexico’s ambassador to Japan, emphasized the new opportunities for collaboration that arise from the two countries’ environmental commitments. Mexico aims to produce 35% of its electricity supply from renewable sources by 2024, while Japan is looking to hydrogen fuels as a key element of its plan to decarbonize its economy by 2050.

“Mexico already produces blue hydrogen and is moving forward to produce green hydrogen, there is another [investment] opportunity for Japan,” she said.

She also emphasized the positive synergies between Japan and Mexico’s different economic strengths.

“Japan’s high technology and investment capacity, the creative capacity, the raw materials and the platform of certainty Mexico offers with the USMCA and 13 free trade agreements with 50 countries, put Mexico and Japan in a place of great stability to export to North America and the world,” she said.

The two countries celebrate the 135th anniversary of the establishment of modern diplomatic relations this year, although their trade and cultural links date back to the colonial period in Mexico.

With reports from Forbes México

2 more minor earthquakes strike Mexico City

By
MND Staff
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Two more small earthquakes have struck in the Álvaro Obregón borough of the Mexican capital today. (Shefali Lincoln/Unsplash)

Mexico City has been hit by successive minor earthquakes for the second time in three days.

A 3.2 magnitude quake shook the capital at 2:13 p.m. Thursday, while a weaker 2.4 magnitude quake occurred two minutes later. The epicenter of both quakes, widely reported as “micro-quakes,” was in the borough of Álvaro Obregón, according to the National Seismological Service (SSN).

Residents of several Mexico City boroughs including Cuauhtémoc, Benito Juárez, Miguel Hidalgo, Iztapalapa and Iztacalco reported feeling the Thursday afternoon quakes.

The Reforma newspaper said that residents of Álvaro Obregón reported feeling a “strong yank” that lasted around five seconds, presumably during the first, stronger quake.

Mexico City Mayor Martí Batres said on the X social media platform shortly after the quakes that no damage had been reported. Authorities carried out their usual earthquake protocols, including conducting inspections from the vantage point of helicopters.

Reforma reported that residents evacuated some buildings, but Mexico City’s earthquake alarm system wasn’t activated.

Mexico City has experienced several small earthquakes in recent weeks. (Rogelio Morales/Cuartoscuro)

The alarm, amplified through loudspeakers situated across the capital, sounds up to a minute before a sufficiently powerful earthquake begins to be felt, but it is dependent on sensors outside the capital. It can give residents a brief window of opportunity to evacuate to the safety of the street and thus avoid the risk of being caught in a building that collapses.

While there are varying definitions of what a microearthquake is, Wikipedia and at least two online dictionaries say that a micro-quake has a magnitude of 2.0 or less. By that definition, the quakes on Thursday wouldn’t qualify as such, although many Mexican media outlets described them as microsismos.

Thursday’s “micro-quakes” followed four on Tuesday, which also had epicenters in Álvaro Obregón.

Eight buildings in the Benito Juárez borough were subsequently evacuated while specialists from the local Construction Safety Institute determined the habitability of each one.

Micro-quakes with epicenters in Mexico City are relatively common, and many – perhaps most with a magnitude of 2.0 or less – are imperceptible.

Thursday’s quakes occurred a week after a 5.7 magnitude temblor with an epicenter in Puebla set off the earthquake alarm in Mexico City. No damage was reported.

The southern state of Chiapas was also affected by seismic activity on Thursday. One quake that occurred just before midday had a magnitude of 5.5, the SSN said. Its epicenter was 135 southeast of Ciudad Hidalgo, Chiapas. No damage was reported.

With reports from Reforma

Canadian citizen with criminal history killed in Cancún gym

By
MND Staff
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Samy Tamouro, a Canadian citizen wanted for an array of criminal offenses, was killed at a gym in Puerto Cancún. (Julio Solís/X)

A man with an international criminal history was the victim of a brazen midday murder inside a fitness center in Cancún on Wednesday.

Identified as Samy Tamouro, the man in his late 30s was shot at least eight times by two assailants who had arrived at the upscale Marina Puerto Cancún shopping plaza on motorcycle, according to Reporteros Ahora on Facebook.

Footage posted to social media showed the assassins arriving at the scene on a motorcycle. (Julio Solís/X)

The shooters went straight for Tamouro, who was working out at the Total Sport gym in the plaza, and gunned him down just before noon. He was taken by ambulance to a nearby IMSS hospital, where his death was confirmed.

Borderlands Beat reported that Tamouro was a “connected drug trafficker” who fled Canada last year after “a convicted hitman responsible for at least four murders” began cooperating with Canadian authorities as an informant.

Tamouro also had “a string of drug trafficking-related convictions and was tied to the infamous Quebec Hells Angels,” added the website, which reports on cartel-related crime.

Tamouro is of Israeli origin, according to the newspaper Reforma, though other outlets have suggested that he originally hails from Morocco. Cancún-based Diario Cambio 22 posted a partial picture of a Quebec driver’s license with his picture, and he was identified as a Canadian in news reports.

Marina Puerto Cancún
The murder occurred at the upscale Marina Puerto Cancún. (Marina Puerto Cancún)

In 2017, he was sentenced to 18 months in prison after pleading guilty to having gang connections and to receiving approximately US $135,000 from the sale of drugs. The charges came as part of a large-scale investigation into gang activity and drug trafficking in Montreal.

The Montreal Gazette reported that Tamouro was 37 and that evidence linking him to a Hells Angels support gang that engaged in drug trafficking came after a convict, Frédérick Silva, turned informant last year.

Police sources recently said that “some well-known organized crime figures left Quebec” after Silva flipped, the paper reported.

The Quintana Roo Attorney General’s Office stated it has opened an investigation into the shooting, which wasn’t the first time a Canadian with a criminal record was murdered in a region that’s become a hotspot for international crime.

In January 2022, two Canadians — one wanted by Interpol — were murdered at a resort in Playa del Carmen, apparently over debts between international drug and arms trafficking gangs.

With reports from Reforma and AP

Ready for sale season? A guide to home decor shopping in Mexico

By
Henrietta Weekes
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Buying furnishings within Mexico is the smart way to go. (Freepik)

Moving to Mexico, moving house or ready for makeover time? The holidays are upon us, and the shopping season is about to go mad! Buying furnishings within Mexico is the smart way to go, as the price of shipping to Mexico can be astronomical, and the delay in shipping goods might mean a Mexican wait (i.e. a looong time).

The Sales are NOW! 

November and December sales in Mexico roll over into January, when stores want to move out stock before their new arrivals. The ‘Back to School’ sales in August later in the year are something to watch out for also, but the time for bargains is from now until February! 

MND surveyed the scene of best places to buy cool home decor in Mexico – from basic necessities to up-scale, stylish furnishings with wow factor.

So, where do I begin shopping for home decor in Mexico? 

It’s true, there are many sites out there, so we found some of our – and our features editor’s – favorites. The cost of furniture in Mexico is about the same as what you would pay in Canada or the U.S.  Sprucing up your space with splashes of Mexican handicrafts, art and design elements is going to be a more affordable, and fun, part of your home interior design project. 

Inspirational tip: We liked AD Magazine, Mexico’s Architectural Digest, for awesome design ideas. 

Handy tips before you begin shopping in Mexico for home decor 

Mexico, like the US, has modern and antique furniture ranging from Contemporary to Victorian, and there’s no reason to pay full price when you can get up to 60% and, in some cases, 80% for last-minute bargains.  

Bargains

Beyond the regular sales times, the big department stores like Liverpool and Palacio de Hierro have specials all the time, plus brand ambassadors will often be there to offer even more discounts and big blowout sales. Placencia also has sales currently, offering 40% off (and sometimes more) on living room, bedroom, and dining room sets.  

Payment Plans

Remember layaway?  Some stores like Moblum and Gaia offer payment plan options with PayPal, scheduled bank transfers or recurring credit card payments. So you can splurge on a bulk buy, especially if you’ve got an empty house, or new rooms to fill, and catch up with payments in a leisurely way. 

Delivery 

Tiffany and Tom Pence moved to Querétaro from Florida in 2018 and report that “deliveries were the most interesting and entertaining part of buying furniture for us. Sometimes the delivery was scheduled 3 days away; other times the deliveries were 2-3 weeks later. Sometimes it was on an official store brand truck, other times on a pickup truck.”  So just double-check check you’re clear on the delivery date and get a contact person’s name and number!  You’re in Mexico now, and we came for a more relaxed lifestyle after all!  It’s just part of it; no sweat. 

Identification (yes, take it!) At each store, you’ll need to provide proof of address, and a passport as a form of identification before delivery approval. “My passport has been copied more times in the first 6 weeks here than all my previous years of having a passport. I’m sure my picture is up on the internet or a public bathroom somewhere,” Tiffany Pence says.  So – just a reminder!  

Give me the best shopping sites, beyond Amazon and Ikea! 

Sodimac 

It seems to be the most popular furniture and homewares emporium for the Mexican population, according to Similarweb’s traffic analytics. It’s a bit of a quagmire on the website, but bargain hunters and those on a budget can score.  

Why shop here?  Cheap and cheerful, all the simple basics. Good for kids. 

DICO

Basics and bargains! Like Sodimac, the least expensive.

Why shop here?  Deals! And cheap beds. Simple furnishings for a rental investment? 

Solutions Mexico

We liked this one in Puerto Vallarta and Nayarit, with its invite to, “easily furnish your home in Mexico, whether one piece or your entire home.”  They have professional interior decorators who will customize a furniture package and a wide range of gorgeous goods, from mid-range to higher-end.   

Why shop here?  They offer furnishing tips, over 200 suppliers and shopping tours to Guadalajara, Tonala and Tiaquepaque to hunt for wall art, rugs, decor items and lighting.  They offer rental packages for rental owners who don’t want to invest in all their furniture at once, but want to rent their property right away.  And their site is in English also, if that helps you! 

Gaia Design 

Stylish, modern, functional furniture, with a touch of the Scandi design vibe, and an easy-to-navigate website.  

Why shop here? 60% off most items right now, free delivery over 12,000 pesos, and an average of 4.6 stars from all the testimonials.  They also offer design services and discovery and design advice calls. 

Moblum

Mid-range price, modern and stylish furniture from the basic to the more interesting.

Why shop here? Offers immediate delivery, flash sales, promotions, one year warranties. They also have a blog and a roster of interior designers – so you can brainstorm and seek advice. 

Moda in Casa

More upscale contemporary furniture, with prices to match. Very stylish – which is immediately apparent on their home page, where the design editor has put some thought into presentation. They have stores in CDMX, Valle de Bravo and Mérida. 

Why shop here? “Each piece is made using the best technology and materials in combination with the expert hands of our artisans who craft each piece to be a unique object.” Say no more.

Mobica

Great standard, mid-range modern furniture with a wide selection. Free design services and ‘lookbooks’ to browse through. 

Why shop here? They donate to underprivileged children (always a plus point).

Bakan 

They specialize in stylish outdoor furniture – from dining sets to banks and benches, umbrellas, and accessories – which combines functionality with good quality and design.  

Why shop here?  Their exclusive brands have anywhere from 40% to 60% price reductions right now. 

Decada

I couldn’t resist these two hip young businesswomen who run this vintage furniture store in Cuauhtémoc, Mexico City, where “each piece tells a story.” 

Why shop here? Every piece of their eclectic collection is thoughtfully curated and hand picked, from a vast range of styles.  Adding just one or two pieces might jazz up your basic items.    

Lagunilla Market

If you’re looking for a quirky shopping experience, and a vast range of antique furnishings, head to La Lagunilla Market, a weekly morning traditional public market in Mexico City, located about ten blocks north of the city’s main plaza, in a neighborhood called La Lagunilla. There are three big, distinct zones dedicated to food, clothing, and furniture.

Why shop here?  The authentic Mexican experience is full of oddities and genuine Mexican antiques to die for. Take a break between shopping and having tacos and a michelada at the lunch counter! 

Mercado Libre 

Mexico’s “Facebook marketplace” is just as spectacular in its range of offerings as its U.S or abroad equivalents. Anyone can sign up, and it’s user-friendly. You just need the stomach for hunting, a bit like thrift shopping. Pick your region, and dive in. There are many current bargains, coupon offers and payment plans connected to all the major Mexican banks.  Interest free installment plans are also tempting for shoppers on a budget! 

So, take a deep breath and enjoy the ride of mixing and matching this huge and eclectic range of home decor on offer in Mexico, that suits your style and your wallet. Sign up for their mailing lists to get final sale alerts and flash sales – happening now – and take advantage of their payment plans and free design or delivery services.  And don’t forget Google translate – or your ID!

Henrietta Weekes is a writer, editor, actor and narrator. She divides her time between San Miguel de Allende, New York and Oxford, UK. 

Neuroscience unveils the effect of psychedelics on the brain

By
Sandra Gancz Kahan
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The "brain reboot" facilitated by psychedelics can lead to more adaptable thinking, emotional breakthroughs and a significant transformation in how individuals perceive themselves. (Freepik)

In the ongoing search for effective approaches to mental disorders, neuroscience is turning its attention to the reasons why people describe psychedelic experiences as profoundly transformative events that produce enduring positive changes in mood and behavior. 

Though researchers are still uncovering the full healing potential of psychedelics, some have found that the mind-altering experiences induced by substances like psilocybin, LSD, ayahuasca and 5-MeO-DMT provide a way to overcome various mental health issues by resetting brain connections. 

The term psychedelic derives from the Greek words “psyche,” meaning soul or mind, and “deloun,” meaning “to manifest.” In essence, psychedelics are “mind manifesting,” and users describe their potential to illuminate hidden aspects of the human psyche. 

Psychedelics are emerging as therapeutic tools to aid in understanding the intricacies of the mind with promising applications for improving mental health. One of the most notable aspects is that, unlike psychiatric medications, a single psychedelic experience provides noticeable results and most cases don’t require any further intake. 

As reported by the Heroic Hearts Project, an institution that provides psychedelic retreats to US veterans suffering from severe PTSD: ”Fewer than 10% of veterans complete or experience significant improvement using traditional treatments. Preliminary independent research of HHP’s psychedelic programs suggests that over 80% of veterans experience improvement after participating in just one of our psychedelic programs.”

Functional magnetic resonance imaging (fMRI) studies, which measure changes in blood flow corresponding to brain activity, are being used to understand the effects that psychedelic experiences have at the neurological level. Particularly intriguing is the evidence showing that these experiences temporarily reduce activity in the default mode network (DMN). 

Often referred to as the “sense of self” network, this area of the brain plays a pivotal role in shaping our identity. The default mode network is essentially in charge of our thoughts when we aren’t focusing on any particular task, generally directing our attention inward. The DMN helps us maintain a sense of personal identity and construct a self-narrative or autobiographical memory, aligning with the Freudian concept of ego. The ego can be understood as a lens through which we view our place in the world.  

Our ability for mental time travel allows us to reflect on the past and project into the future. However, fixating on unsettling memories or concerns about the future, a process known as rumination, can put the default mode network into overdrive. Rumination strengthens the DMN, essentially hard-wiring negativity into the brain. A hyperactive default mode network is associated with various neuropsychiatric conditions, including depression, anxiety, PTSD, ADHD, schizophrenia and OCD.

Studies conducted using fMRI reveal that during a psychedelic experience, activity in the DMN is significantly decreased. When it reactivates, the DMN becomes connected to other regions of the brain that were not communicating. This broader connection phenomenon is known as neuroplasticity. 

By temporarily disrupting the activity of the default mode network, psychedelics foster more open and freer communication between regions of the brain that are usually separate. According to the entropic brain hypothesis, the state of consciousness induced by psychedelics mirrors that of early childhood, characterized by awe and wonder and a perception of the world as entirely novel. These findings align with novelist Aldous Huxley’s early reflections on psychedelic experiences, which he envisioned as a “Mind at Large” that provides access to a broader set of brain functions and an unbounded state of consciousness extending beyond the individual into the collective.

Brain imaging shows that this “reset” of neural connections results in a mind that is less constrained, more flexible and less self-referential and egoic. These altered states of consciousness often provide insights, awareness, transcendence and emotional healing, indicating clinical links between changes to the functional connectivity of the DMN and the positive therapeutic outcomes observed. 

Another highly transformative aspect of psychedelics is the mystical experience of feeling indistinct from nature or a higher power: an all-pervading sense of oneness. The term “ego dissolution” began to be used in the 1950s to describe the experience induced by psychedelics; the experience itself can range from a feeling of being less absorbed in personal concerns to a profound sense of unity with the universe. As the ego – in psychoanalytic terms – dissolves and loosens its grip on the mind, pathological thought patterns can be replaced by alternate perspectives that can help people break free from mental and social isolation.

David Nutt, director of the neuropsychopharmacology unit at Imperial College London, states: “In the depressed brain, in the addicted brain, in the obsessed brain, it gets locked into a pattern of thinking. Psychedelics disrupt that process so people can escape. With a single administration, we can help people see the world in a different way.”

The “brain reboot” facilitated by psychedelics can lead to more adaptable thinking, emotional breakthroughs and a significant transformation in how individuals perceive themselves. Psychotherapeutic techniques such as mindfulness meditation can be used in conjunction with psychedelics for therapeutic purposes because they modulate the DMN in similar ways and act synergistically. 

Mindfulness refers to the awareness that emerges when we deliberately pay attention to the experience of the present moment with curiosity and without judgment. By enhancing and cultivating non-judgmental awareness of one’s thoughts and feelings, mindfulness practices help integrate, deepen and maintain the new perspectives and motivation sparked by the psychedelic experience.

As neuroscience continues to unravel the mysteries of the mind, it is providing growing evidence that the rewiring of the brain induced by psychedelics helps modify thought patterns and increase neurological flexibility, offering hope for those who wish to enhance their mental and emotional wellbeing.

Sandra is a Mexican writer and translator based in San Miguel de Allende who specializes in mental health and humanitarian aid. She believes in the power of language to foster compassion and understanding across cultures. She can be reached at: [email protected] 

Industry in Mexico hits its best streak of growth in nearly 10 years

By
MND Staff
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Construction Tren Maya
Construction was a major driver of industrial growth in October. (Elizabeth Ruiz/Cuartoscuro)

Industrial activity in Mexico increased every month between March and October, the longest winning streak in almost 10 years.

National statistics agency INEGI reported Tuesday that industrial activity increased 0.6% in October compared to September, the best result since June. That extended the period of successive month-over-month growth to eight months.

Statistics agency INEGI showed increased industrial activity across several major economic sectors. (Moisés Pablo/Cuartoscuro)

INEGI’s “Monthly Indicator of Industrial Activity,” or IMAI, measures output in the construction, manufacturing, mining and energy/water sectors.

The last time Mexico recorded a longer streak of month-over-month industrial sector gains was in the nine-month period between October 2013 and June 2014.

Construction sector drove growth in October 

Data shows that construction activity increased 4.7% compared to September, easily outpacing month-over-month growth in the three other sectors assessed by INEGI.

Mining sector growth was 0.6%, while activity in the electricity/natural gas/water sector increased 0.1%. Manufacturing sector activity declined 0.4% compared to September.

Tulum international airpot
The Tulum airport is expected to bring a surge in tourism to the already-popular region. (Mara Lezama/X)

Public infrastructure projects such as the Maya Train railroad and the recently-opened Tulum airport have helped increase construction sector activity, as have private residential, industrial and commercial projects, some of which are related to the the growing nearshoring phenomenon.

And in annual terms

Construction sector activity was also the impetus for a 5.2% annual increase in overall  industrial activity in October.

Construction activity surged 27.5% compared to the same month of 2022, electricity/gas/water sector activity rose 7%, manufacturing output was 0.5% higher and mining output edged up by 0.1%.

INEGI also reported annual gains for the 10-month period between January and October.

The construction sector was once again the winner, with activity up 15.1% compared to the same period of 2022.

Within that category, activity related to the construction of civil engineering projects increased by an impressive 80.5%.

Annual growth for the January-October period was 3.7% for the electricity/gas/water sector, 2.1% for mining and 1.5% for manufacturing.

The overall annual increase in industrial activity was 3.9% compared to the first 10 months of last year.

Expert views

Víctor Gómez Ayala, head of analytics at the Mexican Institute for Competitiveness (IMCO), noted that public spending on infrastructure projects won’t continue growing as it has in recent times.

Román Moreno Soto, an economics professor at the National Autonomous University, highlighted that government spending on public projects will decline by almost 30% next year. That will have an impact on the construction sector, he said.

As a result, ongoing construction sector dynamism “will depend on the capacity of the private sector” to invest, said Moreno, who highlighted the importance of “the relocation of companies” to the overall performance of the industry.

Parallel headshots of Jamie Dimon and journalist Susana Sáenz
Jamie Dimon sat for an interview with business journalist Susana Sáenz on El Financiero Bloomberg TV. (Screen capture)

JPMorgan – whose CEO Jamie Dimon recently lauded Mexico as a nearshoring and business destination – says that the “investment boom” in Mexico’s industrial real estate sector “should continue” as the nearshoring phenomenon gains strength.

Gómez, who was quoted in an El Financiero newspaper report, noted that private investment directed to Mexico’s construction sector is greater than public investment, and said that the prevailing situation would probably continue due to spending by foreign companies relocating here.

As for manufacturing sector activity, the IMCO analyst said that data could be erratic in the near future.

Mexico’s manufacturing sector depends heavily on demand in the United States, and that demand is contingent on the strength of the U.S. economy.

The OECD is predicting that both the United States and Mexico will record lower economic growth in 2024 than in 2023.

With reports from El Financiero 

Nearshoring: The engine of economic growth for Mexico?

By
Alejandra Oropeza
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Manzanillo container ship
Mexico has become a global nearshoring hub, as manufacturers flock to take advantage of favorable business conditions. (Shutterstock)

Nearshoring is a business trend in which companies relocate operations and production in closer proximity to target markets, to reduce costs and improve efficiency. This shift has several potential benefits for Mexico, Canada and the United States, and has been named by specialists as one of the greatest opportunities for economic growth in the region.

What advantages does North America have? The free trade pact known as the US-Mexico-Canada Agreement (USMCA), a strong manufacturing industry and logistics connectivity are the region’s main assets.

What is the opportunity for Mexico?

In this panorama, Mexico has become an attractive destination for relocating companies due to its proximity to the United States, which allows these companies to be more competitive by reducing costs and making their supply chains more efficient.

The north of the country has been one of the regions that has benefited most from the relocation of companies. The state of Nuevo León in particular has positioned itself as the most attractive destination for nearshoring, attracting the greatest number of relocating companies: according to the state’s Ministry of Economy, 72.2% of nearshoring is concentrated in Nuevo León . One of the main reasons for this concentration is that it shares a border with the United States, in addition to its  advanced manufacturing industry and skilled workforce.

With nearshoring and the planned construction of a Tesla gigafactory, an effect has been unleashed in Nuevo León in attracting foreign investment projects. From October 2021 to October of this year, the state has attracted more than US $27 billion in investment from companies such as Sumitomo, Manwah, Bosch, Aptiv, Honeywell, Yanfeng, Unilever, Danfoss, Yinlun TDI, Brembo, Festo and Dayou, among many others.

The north isn’t the only region to have benefited from nearshoring: so has the Bajío, a cultural and geographical region in west-central Mexico that spans six states. 

In this regard, Julio Di-Bella, president of business promotion agency El Gran Bajío,said at a recent nearshoring conference that if those six states that make up the Bajío were a country, it would be among the top 60 economies in the world. After the COVID-19 pandemic, he noted, there was a change in U.S. policy, and their efforts began to align to attract investment.

Business relocation is driven by factors including high transportation costs from Asia to the U.S.and  the Russia-Ukraine war , but fundamentally by  changes in the China-U.S. relationship.Nuevo León governor Samuel García alluded to this dynamic in May during a trip to Taiwan: “There’s a geopolitical issue, a conflict between the U.S. and China,” García said. “The U.S. has said everyone has to leave China and come to North America, and the big winner is Nuevo León.”

According to John Soldevilla, general director of consulting firm ECOBI, speaking at a recent nearshoring forum, nearshoring could cause growth in Mexico’s GDP  similar to that seen following  NAFTA by 2030. The biggest winner would be the manufacturing sector, which would dominate exports, generating 22.4% of GDP. The Mexican government announced fiscal incentives for investors in 10 key exporting sectors of the economy in October. 

Among the identified sectors are the semiconductor, automotive, electrical and electronics, medical and pharmaceutical devices, agribusiness and human and animal food industries, among others.

What are the challenges?

Di-Bella maintained that although the outlook is positive, there are three challenges to taking advantage of the opportunities of nearshoring: energy and water infrastructure , human resources and talent, and the issue of security.

“I’m talking about issues of legal security, that is, that you have the certainty that when you come to start a company, no one is going to change the rules of the game once you have already built it,” he highlighted.

Meanwhile, for Sergio Hernández, president and CEO of CIAL Dun & Bradstreet, speaking at the same nearshoring forum, the outlook is optimistic, but it will be essential for Mexico to be able to offer certainty to investors. He says this can be  achieved through a clear industrial policy that protects the development of businesses coupled with a modernization process that ensures the availability of sustainable resources, as well as promoting the training of more human talent.

Luz María de la Mora, former Mexican Deputy Minister of Foreign Trade and current member of the Atlantic Council, said at a conference that Mexico can take advantage of opportunities and participate in sectors such as semiconductors (assembly, testing and packaging), electric vehicles and batteries, in the pharmaceutical industry, among others.

“What does it mean to take advantage of that opportunity? Today the relocation trend responds to issues of climate change, zero emissions and sustainability. If we do not understand that we have to produce with zero emissions, that we must have a sustainable economy and make better use of resources, we as companies will not be able to join the supply chain.”

For de la Mora, the second point to consider is digitalization, since the relocation that the United States, the European Union, Japan and South Korea are promoting has to do with the industrialization of advanced manufacturing and industry.

“If we are not in the world of technology, innovation and development, we are not going to participate, we are going to be left behind once again and others are going to take advantage of the opportunity.”

Finally, she explained that to take advantage of these opportunities, collaboration between the public and private sectors and academia is necessary.

Alejandra Oropeza is a business writer and contributor to Mexico News Daily

Got 1 min? Maya Train is given the Pope’s blessing

By
MND Staff
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Governor Lezama with Pope Francis
Quintana Roo Governor Mara Lezama visited Vatican City and met the Pope on Wednesday. (Mara Lezama/X)

Pope Francis has blessed the Maya Train. Well, a replica of it, at least.

Quintana Roo Governor Mara Lezama briefly met with the Pope in Vatican City on Wednesday, and showed him a replica of the train that will run on the new railroad set to be inaugurated later this week.

In a video of the encounter, Pope Francis is seen making the sign of the cross above the model train.

“This is the train of social justice,” Lezama tells the Argentine Pontiff as she hands the replica to him.

The Morena party governor gave the Pope a brand new replica of the Maya Train as well as a tablecloth hand-embroidered by Maya women from Tulum and a letter from President López Obrador and his wife Beatriz Gutiérrez Müller.

“With profound emotion, in representation of the Mexican government, I shared a message of affection and fraternity on behalf of Mexicans with Pope Francis,” Lezama wrote on social media.

“… His Holiness sent blessings and greetings to the good people of Mexico!” added the governor, who held up her phone to record the Pope as he directed a message to her compatriots.

The Maya Train will run through Lezama’s home state of Quintana Roo as well as Yucatán, Chiapas, Campeche and Tabasco.

The first trip on which ordinary paying passengers will be on board will depart Campeche for Cancún on Saturday. Other sections of the 1,554-kilometer-long railroad will open on later dates.

Pope Francis visited Mexico in 2016 during the presidency of Enrique Peña Nieto. In 2021, he issued an apology through Monterrey Archbishop Rogelio Cabrera for “personal and social sins … that didn’t contribute to evangelization” during the Spanish Conquest of Mexico.

With reports from El Financiero and Quadratín

8 buildings in Mexico City evacuated after series of minor quakes

By
MND Staff
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Earthquake evacuations CDMX
Eight buildings in the Benito Juárez borough of Mexico City were evacuated due to concerns about damaged sustained in a series of "micro-quakes" earlier this week. (Juan Pablo Zamora/Cuartoscuro)

The four minor earthquakes that struck Mexico City on Tuesday prompted the evacuation of eight buildings in the Benito Juárez borough.

The evacuations were ordered after a review of 24 residential properties, schools and other buildings in the area. Officials speaking on behalf of the borough mayor’s office said evacuees wouldn’t be allowed to return until specialists from the local Construction Safety Institute determine the habitability of each structure in question.

Three quakes occurred over three minutes, leading to structural concerns in many of the capitals buildings. (Galo Cañas/Cuartoscuro)

One quake added to tally

Initial reports yesterday put the tally at three small earthquakes over the course of three minutes, but two hours later there was another one.

The first three “micro-quakes” — with magnitudes between 2.4 and 3.0 — occurred between 11:06 and 11:08 a.m. at intervals of roughly one minute. The epicenters were in the city’s southwest borough of Álvaro Obregón, according to the National Seismological Service (SSN).

Though no seismic alarm sounded, shaken residents, office workers and others were quick to evacuate their buildings, particularly in the Mixcoac and Insurgentes Mixcoac neighborhoods of the Benito Juárez borough.

Just as nerves had calmed, another “micro-quake” struck at 2:23 p.m., registering 2.1 on the Richter scale.

Earthquake evacuations CDMX
Earthquake evacuations in Mexico City are not uncommon, with almost 14,000 alarm systems installed across the city to warn residents of incoming earthquakes. (Juan Pablo Zamora/Cuartoscuro)

How did people react?

Residents of the Lomas de Plateros condo complex in Benito Juárez said that although they are accustomed to feeling tremors, three in a row was a novelty.

“The strongest was the first, a sudden jerk, but it was very fast,” condo resident José Luis Montoya said in an interview with the newspaper Reforma. “We thought that would be the only one, and that’s why many neighbors did not come outside. But a few seconds later, another one was felt, and by the third, everyone was outside.”

Montoya, who lives on the ground floor, evacuated immediately with his pet, but residents on upper floors usually wait to hear the seismic alarm before heading for the doors.

Joaquín Jaubert, who lives 1.5 km from the epicenter, was in his kitchen when the first quake struck. “It was very strong,” he said, adding, “more ‘micro-quakes’ have been felt here since [the one on] May 10. Now cracks have opened up inside the house.”

The eight evacuated properties are along Los Echave, Campana and Donatello streets and Revolución Avenue and Adolfo López Mateos Blvd.

Why didn’t the seismic alarm sound? 

Generally, it is expected that an earthquake alarm will ring out from nearly 14,000 loudspeakers in the capital. According to civil protection officials, the earthquake alarm didn’t sound yesterday for two reasons.

One, because the quakes originated within city limits, and warning sensors are located outside of Mexico City; and two, the quakes were only 1 to 2 km deep (10 km deep is the average), making them “surface” earthquakes, which don’t always trip the sensors.

With reports from Reforma and La Jornada

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