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Who are the traditional vendors that soundtrack Mexico’s streets?

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Knife sharpener on his bike
The distinctive whistle of the "afila cuchillos" is a part of every day city life - but one that is increasingly in danger. (Isaac Esquivel/Cuartoscuro)

If you’ve ever spent time in one of Mexico’s bustling cities, you’ve likely heard the distinct sound of a knife sharpener passing through the street. A shrill, piping sound that announces the arrival of an artisan ready to make your knives and other industrial instruments useful once again. Knife sharpeners are part of a group of specific jobs that not only provide valuable services but also contribute in a significant way to Mexico’s street and neighborhood culture.

Knife sharpening, like many other traditional jobs, forms a part of Mexico’s informal economy. These professions are often heralded by specific tunes, making it easy for residents to identify them from inside their homes or high up in apartment buildings. As the world modernizes, these jobs are unfortunately increasingly obsolete and slowly disappearing. Sounds that once filled the air multiple times a day are now heard perhaps only once a week.

Knife sharpener at Mexico City, wearing glasses to protect his eyes.
Once an essential part of everyday life, traveling knife sharpeners are now an endangered species. (Isaac Esquivel/Cuartoscuro)

Quintessential to this disappearing trade, knife sharpeners go through the city atop a bicycle, which serves not only as their mode of transportation but also as an indispensable part of their toolkit. Different from other bicycles, those used by knife sharpeners are equipped with a metallic structure that elevates the back tire off the ground, keeping the bike stationary. The back wheel, when elevated and pedalled in place, powers a grinding wheel of stone or metal that sharpens knives, scissors, and other tools. This results in a portable and effective setup that enables knife sharpeners to travel across whole cities on the same day.

The accompanying sound to these artisans’ presence emanates from an instrument known in Mexico as a “caramillo.” This flute-like instrument dates back to medieval times, is also known in other Spanish-speaking countries as chifre, chiflo, or flauta de pan. 

Originally made from wood or cane, the caramillo is now often crafted from plastic. The sound that comes out of it is more than just a call to customers; it is a cultural marker and one of the many distinctive sounds of the Mexico City streets. For many, it is also a comforting reminder of the enduring presence of traditional trades amidst the rapid pace of modern life. 

It’s very simple to use a knife sharpener’s services and renew some of your commonplace kitchen and household items. Once you hear a caramillo, all you need to do is walk outside into the street with whatever item needs sharpening. Price is set by each artisan and varies, of course. 

@mayaenbici Ciclistas que siempre nos harán sentir orgullo 🚲⚔️ #afiladordecuchillos #afilador #ciclistas ♬ sonido original – LA TELE DE AYER

The profession has survived so far, but knife sharpeners are facing significant challenges. The easy availability and disposability of goods, as well as the existence of cheap and mass-produced knives considerably reduce the need and demand for sharpening services. More and more, it seems like the convenience of buying new items often outweighs the “inconvenience” of waiting for a traveling sharpener. 

Yet, they persist. Some of these artisans follow the family trade and learn the skills and techniques from family members, keeping the tradition alive from previous generations. One of the most important reasons why they continue, apart from cultural significance, is the environmental benefit of knife sharpening. Renewing and re-sharpening your knives contributes to reducing waste and promoting sustainability. In an era of increasing environmental consciousness, the wait for the sound of a caramillo passing through your street instead of a trip to a hardware store could just well be worth it. 

If you look closely, knife sharpeners are much more than their trade, their bicycle or their caramillo. Upon further examination, they can tell you much about Mexico, its people, and its culture. They are a representation of a culture whose necessity is quickly transformed into resourcefulness and adaptability in a way that is valued highly enough to stave off modernity. 

Whether you have a sharpening need or not, next time you hear a sharpener passing by, take a moment to appreciate the cultural significance of this craft. Think about how they connect neighborhoods, and how, as they continue to navigate the streets and sharpen the streets of Mexico, they preserve a slice of history — reminding mexicans and the rest of the world the value of tradition in an ever-changing world.

Montserrat Castro Gómez is a freelance writer and translator from Querétaro, México.

Volaris announces new Tijuana-Las Vegas flight

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Las Vegas
Budget carrier Volaris is set to link one of Mexico's top party destinations with the United States' greatest party destination. (Leo Visions/Unsplash)

Mexican budget airline Volaris will offer direct flights between Tijuana, Baja California and Las Vegas, Nevada, starting Oct. 29. The flights will be operated three days a week, on Tuesdays, Thursdays and Sundays, according to Baja California Governor Marina del Pilar Ávila Olmeda. 

“At Volaris, we are constantly looking to increase travel options and provide unparalleled flight experiences to meet high potential markets like Las Vegas,” said Holger Blankenstein, executive vice president of Volaris.

Flights to Las Vegas will begin on October 29, the airline announced. (Airbus)

The state of Nevada is the third largest market for U.S. visitors to Baja California, after California and Arizona, according to Miguel Aguiñiga Rodríguez, the Baja California tourism minister.

“This new route will be a direct bridge between these two important economic destinations, which will also allow us to continue strengthening cultural ties between both nations,” he said.

The Tijuana-Las Vegas route is part of Volaris’ expansion strategy in Mexico, the U.S. and Latin America. Other new routes Volaris has announced this year include El Salvador to Miami; San José, Costa Rica to Guadalajara; and Cancún to McAllen, Texas. Volaris is Mexico’s biggest airline, flying 24.3 million passengers in 2023.

In February, American Airlines launched a non-stop route between Phoenix, Arizona and Tijuana, marking the city’s first direct flight to the U.S. in seven years, after the closure of the Volaris Tijuana-Oakland route. 

The addition of new direct flights between Tijuana and cities in the U.S. arrives at a time when Tijuana is seeing a drop in tourism. According to the head of the city’s Tourism and Conventions Committee, since the start of the year, medical tourism is down by 50% while restaurants are seeing 45% fewer U.S. visitors, resulting in a 30% drop in profits. 

In an interview with CBS, Karim Chalita Rodríguez blamed low tourism numbers on security concerns among U.S. citizens, a weak dollar versus the Mexican peso and bad weather. 

With reports from T21, A21 and El Universal

Is Mexico City about to experience ‘Day Zero’?

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Pipas in CDMX
Will Mexico City's wells run dry by the end of the month? (Graciela López/Cuartoscuro)

In February, media outlets started blaring warnings about an impending “Day Zero” when Mexico City would run out of water. Lingering drought and extreme heat are conspiring to threaten the most populous city in North America with a disaster of epic proportions.

The ominous reports even provided a date on which more than 20 million people would be left without water: June 26. A crisis, yes, but Mexico City is not on the verge of a parched, gasping apocalypse… yet.

Low level at Valle de Bravo dam
While the Mexican capital may be starved of precious water, the situation is not as dire as some news might suggest. (Crisanta Espinosa Aguilar/Cuartoscuro)

It’s true that the Mexico City Metropolitan Area (ZMVM) is desperate for water. Years of low rainfall have pushed an already strained delivery system to its limit. Record setting temperatures have worsened the situation.

Lost in most headlines, however, was the fact that Day Zero refers specifically to the Cutzamala system, which supplies about 28% of Mexico City’s water. To be clear, that system is facing a very real threat of becoming inoperable if action is not taken, or if a generous rainy season doesn’t blow into the valley.

While solutions are being formulated, this doesn’t mean the ZMVM is free and clear. Sixty percent of Mexico City’s water comes from an overexploited aquifer that is being depleted at twice its recharge rate and could run dry in 40 years. But the subject of Day Zero fears is the aging hydraulic system that pumps water vast distances uphill to 12 of Mexico City’s 16 boroughs and 16 neighboring municipalities.

What is the Cutzamala system?

The Valley of Mexico is a highland plateau surrounded by mountains and volcanoes. Present-day Mexico City sits in this basin, once home to five interconnected lakes when the Spanish arrived in 1519, eventually conquering Tenochtitlán in 1521.

Valley of Tenochtitlan, as seen by Cortez
Valley of Tenochtitlan, as seen by Cortez in the early days of the Spanish conquest. (Noticonquista UNAM)

For four centuries, the lakes were drained for flood control, while wells and aquifers were used for drinking water. Early last century, scientists observed that the extraction was contributing to the city’s sinking up to 40 centimeters a year into the old lakebed of Lake Texcoco. The exploitation of aquifers within the city was banned and new wells were excavated on the city’s outskirts, but that was insufficient to quench the thirst of the rapidly growing metropolis.

In the 1940s, a system of aqueducts was built to bring water from the nearby Lerma River basin northwest of the capital, but problems arose when area residents protested the extraction of what they saw as their water. By the 1960s, the more distant Cutzamala River basin was seen as a solution and in 1976, the pipes, pumping stations and reservoirs of an existing México state hydroelectric system were turned over to the Cutzamala project, converting the works from energy generator to water provider.

The result was a complex inter-basin transfer relying on 11 dams, seven reservoirs, six pumping plants and 322 kilometers of canals, tunnels and pipelines that carry water from the Cutzamala basin up more than 1,100 meters in elevation difference through Michoacán, México state and Mexico City: the Cutzamala system we know today. Considered one of the most significant engineering works in all of Mexico, it provided nearly 15 cubic meters of water per second to meet the needs of the massive population in the Valley of Mexico.

The infrastructure has not aged well, and studies show that more than 40% of the water is lost through leaks. The system’s reservoirs are losing water due to extreme heat and drought is shrinking the rivers that feed it.

Cutzamal dam, Valle de Bravo
The Cutzamala damn system, which is subject to the “Day Zero” furore.. (Crisanta Espinosa Aguilar/Cuartoscuro)

Fears of an impending Day Zero were fueled by reports that less than half of Mexico City residents were getting reliable water service, 30% were getting their water delivered by truck and the remaining 25% were stuck with a water-rationing system known astandeo whereby the water taps only work during certain hours of the day.

Then came headlines about dwindling water supplies in the reservoirs. The Valle de Bravo and Villa Victoria reservoirs — the two biggest in the Cutzamala system — had shrunk to their lowest levels in 25 years and extraction was reduced by half. The entire Cutzamala system lost 6.22 million cubic meters of water in early April and was at a historically low 30% of capacity, within range of the limit at which the pumps would grind to a halt. 

Taking steps to remedy the situation

Deeper wells are being dug and more residents are seeing water rationed. The system’s flow rate has been lowered and water pipe maintenance is being carried out, despite the inconvenience of shutting off water to neighborhoods for days on end.

Polymer tubing is being inserted into the existing water pipes to reduce leakage and a new aquifer discovered about 135 kilometers (84 miles) north of the Valley is being studied.

Additionally, researchers from the National Autonomous University of Mexico (UNAM) presented a far-reaching proposal to address Mexico City’s water crisis. The project includes intensive water capture and artificially recharging the aquifer by injecting surface water directly into the ground. It encourages the use of treated residual waters in agriculture, as only 75% of irrigated lands in the Valley use treated water and less than 12% of that water is reused. The project is estimated to cost 97 billion pesos.

While these are positive steps, increased water rationing is inevitable in the foreseeable future and additional strategies must be found to avoid a real Day Zero scare. Either that or consider renewing sacrifices to Tlaloc, the Mexica god of rain.

Tom Buckley writes for Mexico News Daily.

Polls on Morena’s judicial reform show the majority of Mexicans support it

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Claudia Sheinbaum at a meeting with legislators
President-elect Claudia Sheinbaum shared the judicial reform poll results on Monday, and met with Morena lawmakers on Tuesday, who will have majorities in both houses of Congress in September. (Cuartoscuro)

A large majority of Mexicans are in favor of the controversial judicial reform proposal submitted to Congress by President Andrés Manuel López Obrador, according to the results of three polls commissioned by the ruling Morena party.

President-elect Claudia Sheinbaum announced the results of the polls at a press conference on Monday.

Claudia Sheinbaum at a press conference showing the judicial reform polls
Sheinbaum announced the poll results at a press conference on Monday. (Cuartoscuro)

The judicial reform proposal — which seeks to allow citizens to directly elect Supreme Court justices and other judges, among other objectives — was sent to Congress in February as part of a large package of proposed constitutional changes.

Since Morena’s comprehensive victory in the June 2 elections, concerns over the likelihood of the approval of the reform proposals — particularly the judicial one — have caused the Mexican peso to depreciate around 8% against the US dollar.

Critics say that some of the proposals, including one to disband a number of autonomous government agencies, will reduce checks and balances on executive power in Mexico.

Sheinbaum supports the proposals, but pledged last week that there would be “broad consultation” before they are considered by the new Congress, which will be sworn in Sept. 1.

The surveys — conducted by the polling companies De las Heras and Enkoll, and Morena’s Polling Commission, at homes across the country — are part of the consultation process.

A total of more than 3,800 people responded to the three surveys, which were conducted between June 14 and 16.

The margin of error was between +/- 2.57% and +/- 2.9%, while the confidence level was 95%, according to the two polling companies and Morena’s Polling Commission.

4 in 5 respondents believe the judicial reform is necessary

Over 80% of respondents to the Enkoll (83%) and Morena (81%) polls said they believed that carrying out the judicial reform is necessary, while 77% of those polled by De las Heras said the same.

Results of Morena poll infographic
The ruling party posted the poll results to social media. This graphic shows the results from respondents answering the question “Do you think it’s necessary to reform the judiciary or not?” (Morena/X)

The percentage of respondents who said the reform wasn’t necessary ranged from 12%-14%, while the remainder of those polled didn’t respond or didn’t have an opinion one way or the other.

Of note is that around half of those polled — 54%, 51% and 49%, according to the different polls — hadn’t heard of the proposed reform before they were asked about in the survey.

However, the majority of those people were evidently not dissuaded from expressing support for the proposed reform, despite their lack of knowledge about it.

López Obrador argues that Mexico’s judiciary is at the service of the nation’s elite rather than ordinary people, and that it needs renewal. Sheinbaum agrees.

A key aim of the proposal is to allow citizens to elect Supreme Court justices from candidates nominated by the sitting president, the Congress and sitting Supreme Court justices themselves.

Among its other objectives are to reduce the number of Supreme Court justices from 11 to nine, to shorten their terms from 15 years to 12, and to cap their maximum permitted salary at the same level as that earned by the president.

Referring to the survey results, Sheinbaum said Monday that “a very high percentage of the population believes that it is necessary” to overhaul the judiciary.

She noted that the percentage of poll respondents who are in favor of the reform is even higher than the 59.75% support she attracted in the presidential election on June 2.

Around 7 in 10 respondents believe citizens should elect Supreme Court justices and other judges 

Respondents to the three polls were specifically asked how Supreme Court (SCJN) justices should be chosen, and how other judges and magistrates should be selected.

A woman salutes in a congressional hall with a crowd seated behind her
The president appointed Lenia Batres to the Supreme Court, after the Senate failed to approve any of his nominees. (Senator Ana Lilia Rivera/X)

Exactly three-quarters of respondents to both the Enkoll and Morena polls said that the Mexican people should elect SCJN justices, while 68% of those polled by De las Heras said the same.

Between 18% and 25% of the respondents said that the Senate should elect the justices, as is currently the case. A short list of three candidates are submitted to the Senate by the sitting president when a position for a justice becomes available.

However, late last year, López Obrador directly appointed Lenia Batres Guadarrama as a SCJN justice after the Senate on two occasions failed to endorse any of the candidates he put forward. It was the first time in Mexican history that a president made a direct appointment.

Asked how lower-ranking justices and magistrates should be chosen, around seven in 10 respondents again responded that citizens should elect them. Between 19%-24% of those polled said that the judicial power itself should choose the judges that preside over Mexico’s courts.

A majority of respondents believe all or most judges are corrupt

One in five of those polled by De las Heras said they believed that all justices, judges and magistrates are corrupt, while 17% of respondents to the Enkoll survey and 15% of those who spoke with Morena pollsters said the same.

Much larger numbers of people said that “the majority” of judges are corrupt: 44% (Enkoll); 40% (Morena) and 38% (De las Heras).

President López Obrador is a harsh and persistent critic of the judiciary. Here he shows a Supreme Court justice receiving a recognition from former President Calderón. (Cuartoscuro)

Thus 55%-61% of those polled either said that all or most judges are corrupt, sharing an opinion that López Obrador and other government officials have voiced on countless occasions.

Around three in 10 respondents (26%-34%) said that only a few judges are corrupt, while only 2%-5% of those polled said that no judges are corrupt. The remainder declined to share an opinion.

Almost 9 in 10 respondents support the creation of an independent judicial watchdog 

The pollsters also asked respondents whether they agreed or disagreed with the creation of an independent body to oversee the judicial system, investigate alleged misdeeds and sanction judges where appropriate.

Between 85%-89% of respondents said they agreed with the idea, while only 7%-9% disagreed.

As the proposed judicial reform would change Mexico’s constitution, it requires support from two-thirds of lawmakers to pass Congress.

Morena and its allies won a supermajority in the lower house on June 2, but fell just short in the Senate, meaning that they will have to gain the support of a few opposition senators in order to approve constitutional reform proposals put forward by López Obrador and Sheinbaum, who will be sworn in as Mexico’s first female president on Oct. 1.

With reports from El Economista, Reforma and El Financiero

US pauses Michoacán avocado inspections, citing agent safety issues

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Employees in an avocado processing plant in Michoacan move around large carts of avocados
The USDA’s red light on inspections means that importation into the U.S. of Michoacán's avocadoes will be limited to items already inspected or that are currently in transit. (Cuartoscuro) (Juan José Estrada/Cuartoscuro)

The United States Department of Agriculture (USDA) is pausing avocado inspections in Michoacán following what it called an unsafe incident in a rural part of the state involving two American inspectors.

Michoacán is Mexico’s No. 1 avocado producer and exporter. 

Michoacan Gov. Alfredo Ramirez Bedolla standing at a podium
Michoacán Gov. Alfredo Ramírez Bedolla downplayed the incident cited by the U.S. government, in its decision to pause avocado inspections, saying that the two inspectors were caught up in a civil demonstration and were never in real danger. (Alfredo Ramírez Bedolla/Twitter)

The pause in Michoacán avocado inspections also applies to mangoes grown in the state. Michoacán is Mexico’s second largest exporter state of mangoes to the U.S., according to the Mexican Association of Mango Producers and Exporters (EMEX). Michoacán was responsible for 19% of the 65.3 million cases of mangoes exported to the United States in 2023.  

In conjunction with the announcement about the pause in avocado inspections, the U.S. State Department issued a travel alert stating, “Due to recent security incidents in Aranza, Michoacán, the U.S. government reminds U.S. citizens not to travel to the state.” 

It restated that its current travel advisory for Michoacán is “Level 4 — Do Not Travel due to crime and kidnapping.”

The USDA’s red light on inspections in the state means the import into the United States of Michoacán’s “green gold” — as avocados from the state are often referred to — will be limited to items that have already undergone inspection or are currently in transit.

Mexican President Andrés Manuel López Obrador said Tuesday that a “sane solution is being sought … but it takes time.”

In a post on the X social media platform on Tuesday, U.S. Ambassador to Mexico Ken Salazar confirmed that the USDA’s Animal and Plant Health Inspection Service (APHIS) had suspended inspections in Michoacán “until these safety issues have been resolved.”

US Ambassador to Mexico Ken Salazar gesturing with one hand to Mexico's President-elect Claudia Sheinbaum, United States Homeland Security Advisor Liz Sherwood-Randall and others,
US Ambassador to Mexico Ken Salazar, seen here (second from right) on June 11 with Mexico’s President-elect Claudia Sheinbaum, United States Homeland Security Advisor Liz Sherwood-Randall and others, said on Twitter on Tuesday that he’ll be in Michoacan next week to address security and other issues in the state. (Ken Salazar/Twitter)

“This pause does not affect other Mexican states, where APHIS inspections continue,” Salazar added. “This action does not block all exports of avocados or mangoes to the United States, nor does it stop products currently in transit.”

Salazar wrote that two APHIS employees “were recently attacked and detained while carrying out their work in the state of Michoacán inspecting avocados,” adding, “They are no longer in captivity.”

The incident reportedly occurred Friday during a blockade by community members in Aranza, a town in the municipality of Paracho. However, Michoacán Governor Alfredo Ramírez Bedolla disagreed with Salazar’s version and other published accounts of the incident.

Ramirez told the Ciro Gómez Leyva news radio program that the “two agents were never at any risk.” However, the newspaper El País wrote that Aranza community members “detained and beat” the two inspectors.

Bedolla agreed that some private vehicles were stopped during a “social demonstration,” including the one in which the inspectors were traveling. However, he said it was not due to their role as inspectors and that they were not physically harmed or harassed.

He did concede that the inspectors might have “felt attacked,” as might anyone when their car is “detained.”

Bedolla also expressed confidence Tuesday morning that the conflict over avocado inspections could be resolved within the next 48 hours — a stance that was seemingly contradicted by Ambassador Salazar’s post on X shortly thereafter.

“Next week, I will travel to Michoacán to meet with [Bedolla] and the Association of Producers and Export Packers of Mexico (APEAN) to address, among other important issues, security,” Salazar wrote.

Of the U.S. decision to pause Michoacán inspections, President López Obrador said, “Well, those are their policies. Fortunately, we have good relations [with the U.S., and] we are convincing them to act differently, but it takes time.”

According to El País, the U.S. imported 1.4 million tonnes of avocados from Mexico last year, a 17% increase over 2022. More than 80% of the avocados produced in Mexico are exported to the U.S. Overall avocado production in Mexico this year is predicted to be 2.7 million tonnes, with 73% of that total coming from Michoacán.

The United States also halted Michoacán avocado inspections twice in 2022, also for safety concerns.

The first suspension occurred after a Uruapan-based inspector received a threatening call to his official cell phone; the second was implemented due to violence in Michoacán, one of six Mexican states categorized as “do not travel to” by the U.S. State Department.

With reports from Infobae, El País, Forbes and New York Times

Want a bottle of Tesla Mezcal? You might have to try Ebay

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Tesla Mezcal bottle
Tesla's newest alcoholic beverage product is Tesla Mezcal — which sells for US $450 per lightning-shaped bottle on the Tesla Mezcal website. Launched last week, it's already out of stock. (Tesla Mezcal)

Tesla may not be building its gigafactory yet in the northern state of Nuevo León, but we now know that Elon Musk’s electric vehicle company is producing mezcal, Mexico’s famed agave spirit. 

Following in the footsteps of Tesla Tequila — introduced in 2020 — last week Tesla Mezcal was launched, becoming its most expensive liquor yet, according to the news website Business Mexico Insider.

Elon Musk
Elon Musk, founder of Tesla, which now sells its own mezcal. (Trevor Cokley/US Air Force)

The limited-release mezcal is priced at US $450 per bottle and is described on the Tesla website as “spicy, with a deep citrus and green apple nose that gives way to soft herbal notes with a delicate smokiness that lingers on the tongue.”

“It finishes with soft tuberose, jasmine and chamomile. Mouthfeel is balanced, yet strong with light bitter notes at the end.”

Tesla Mezcal’s hand-blown glass bottle — created by Tesla’s director of product design, Javier Verdura — is said to draw inspiration from centuries-old pottery traditions in Oaxaca. The 750-milliliter bottle has the shape of a lightning bolt, as did the gold bottle for Tesla Tequila, which sold at $250.

Tesla Mezcal is expected to be a popular collectible. As of Tuesday morning, the Tesla website listed the product as out of stock — even with purchases limited to two sets per customer. Those interested in purchasing the hard-to-get mezcal — which is only available for delivery in select U.S. states — should consult the website. There is no information regarding its availability in Mexico or other countries, according to the newspaper Infobae.

Musk’s mezcal is just the latest in celebrity-branded versions of the beverage. Rock-n-roller Sammy Hagar launched an 80-proof blend of mezcal and tequila called Santo Mezquila in 2017. Two years later, “Breaking Bad” TV series co-stars Bryan Cranston and Aaron Paul launched their Dos Hombres mezcal brand.

The mezcal is produced for Tesla by California-based Nosotros Tequila & Mezcal and is derived from the fermentation of Espadín and Bicuishe agave varieties, according to USA Today, which also notes that the Tesla Mezcal features a rather low 43% alcohol content by volume.

The makers of Tesla Mezcal, Michael Arbanas and Carlos Soto, posing among agave plants
The Tesla mezcal is made by a California producer, Nosotros Tequila & Mezcal. According to their website, Nosotros’ mezcal is Mexican, sourced in Jalisco. Pictured, left to right: Nosotros founders Michael Arbanas and Carlos Soto. (Bristol Farms)

Mezcal, along with tequila, is one of the most emblematic Mexican spirits. Both are made from the agave plant, though tequila can only be made from one variety while mezcal can be made from many. Exports of tequila and mezcal from Mexico were worth $621 million in the first two months of 2024, putting them among the top national agricultural exports.

With reports from USA Today, Forbes, Business Insider Mexico and Infobae

5 questions about investment in Mexico: An interview with former Ambassador Jorge Guajardo

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Jorge Guajardo head shot
Jorge Guajardo is the former Mexican ambassador to China (2007-13) and is now a partner in an advisory firm. Mexico News Daily asked him five questions about Mexico's economic potential. (Courtesy)

Mexico received more than US $36 billion in foreign direct investment (FDI) last year, but an even more eye-catching figure was the $110.74 billion in investment announcements made by private companies over the course of 2023.

Optimism that Mexico — already the world’s 11th largest FDI recipient — is set to reap major economic rewards from the nearshoring trend, including a significant increase in FDI, can be found in government statements, in newspaper headlines, in remarks from leading business figures and in comments from President-elect Claudia Sheinbaum.

However, there are concerns that Mexico runs the risk of missing its nearshoring opportunity, or at least not taking full advantage of it, for a variety of reasons, including insecurity, government policy and lack of infrastructure.

To get another viewpoint on Mexico’s current FDI situation, and its future opportunities, Mexico News Daily CEO Travis Bembenek and I spoke to Jorge Guajardo, Mexico’s longest serving ambassador to China (2007-13) and a former consul general in Austin, Texas.

Jorge is now a partner at DGA Group in Washington, D.C., where he provides strategic guidance to companies on risk, cyber security, market disruptions, and barriers to market entry in China and Latin America.

MND put five FDI-related questions to the former ambassador, a Monterrey native who keeps a close eye on political, economic and social developments in Mexico.

Will the foreign companies that have recently made investment announcements for Mexico follow through with their plans? 

Guajardo essentially provided two answers to this question: one for Chinese companies and another for firms from other foreign countries.

Companies from the United States and Europe, for example, usually conduct “due diligence” before they commit to a project and therefore tend to make “more serious” investment announcements, he said.

On the other hand, China, and Chinese companies, have “a long history of making investment announcements they don’t follow up on,” Guajardo said.

In that context, he told MND he sees slated Chinese investment in Mexico as “a big nothing story,” citing promised Road and Belt Initiative projects that haven’t come to fruition to support his view.

Guajardo is skeptical of some of the Chinese investment announcements in Mexico. For example, Chinese EV maker BYD has announced plans this year to build a plant in Mexico. (BYD/Facebook)

Take China’s investment announcements in Mexico with “a huge grain of salt, a Rock of Gibraltar-sized grain of salt,” Guajardo said.

“China announces things without giving it much thought, they seldom actually go ahead. In China there is a saying that once you sign a contract that’s where the negotiation begins. … I’m not saying it as a criticism, it’s just they have a different way of doing business,” he said.

Given that firms from other foreign countries typically conduct ample research before they commit to a project, and considering that they are often public companies with a responsibility to report to their shareholders, Guajardo is confident that they will go ahead with the projects they announced during Andrés Manuel López Obrador’s presidency.

If they were confident enough to commit themselves to projects during AMLO’s administration, they won’t change their mind during the presidency of Claudia Sheinbaum, he said.

Regarding the proposed reforms López Obrador sent to Congress earlier this year — which have generated considerable concern in markets in the wake of Mexico’s recent elections — Guajardo noted that Morena and its allies didn’t win a supermajority in the Senate and therefore there is no ironclad guarantee they will be able to approve the proposals.

Even though there is a better than even chance that they will be able to bring over the missing votes from other parties, he said, this will be done on a case by case basis, without a blank check for Morena to proceed without having to build coalitions.

Guajardo added one caveat to his confidence about most foreign companies following through on their investment plans, noting that he expects more caution from auto sector companies, including Tesla, because of Chinese overcapacity in that sector and the possibility that those vehicles will be dumped all over the world.

Is it concerning that ‘new investment’ currently constitutes only a small percentage of overall FDI?

New investment accounted for just 3% of FDI in the first quarter of 2024, while the figure last year was 13%. The lion’s share of FDI in Mexico in those periods was “reinvestment of profits” by foreign companies that already have a presence here.

Some analysts have claimed that the low levels of new FDI are a cause for concern and evidence that Mexico hasn’t yet really benefited from nearshoring.

Lego ceremony
Danish toy giant Lego is set to invest a further US $200 million in its Monterrey site, which is its largest manufacturing facility globally. (Lego)

For his part, Guajardo said he was unconcerned about the low current levels of FDI.

Whether foreign companies’ outlay in Mexico is new investment or reinvestment of profits “makes no difference to me,” he said.

The expansion plans of companies such as automotive manufacturer Polaris and toy maker Lego in Nuevo León don’t represent “new investment” as classified by the Economy Ministry, but “the way they’re growing” is new, Guajardo said, noting that they are “building more capacity” and “hiring more people.”

If most companies that have recently made new investment announcements for Mexico do go ahead with their plans, as Guajardo believes they will, the “new investment” proportion of FDI will inevitably rise in the coming years.

What are the most attractive sectors for foreign investment in Mexico?

Mexico’s under-resourced energy sector is “the biggest immediate area of opportunity for foreign direct investment,” Guajardo said.

“… If I’m talking to foreign investors I would say the big area to keep an eye on is the energy sector. There’s a huge opportunity for generation and transmission,” he said.

North Rankin Complex Woodside Energy
Australia’s Woodside Energy is one large company currently investing and operating in Mexico’s energy sector. (Woodside Energy)

Guajardo said that the makeup of Sheinbaum’s team — she is due to name her cabinet this week — will be indicative of whether she wants to maintain AMLO’s “energy sovereignty” posture, or whether she is more pragmatic and seeks to address deficits in energy generation, especially clean energy generation, by allowing, and courting, greater private sector investment.

Beyond the energy sector, he said that the logistics industry represents another area of investment opportunity given that the desire to shorten supply chains is a major motivation for relocation to Mexico by foreign companies.

“That would be an area I’d be keeping an eye on,” Guajardo said, noting that there is already significant foreign investment in transport and warehousing projects in Mexico.

Will the depreciation of the peso spur foreign investment?

“My guess is most every exporting company in Mexico wanted a depreciation of the peso,” Guajardo said, referring to the recent drop in the value of the currency against the US dollar.

He said that a weaker peso — the currency has depreciated 8% against the greenback since the elections — puts winds in the sails of industry in Mexico because their exports are “more attractive.”

Guajardo said he was “quite bullish” on the opportunities that a weaker peso creates for Mexico, although he expressed consternation at the cause of the currency’s recent fall — i.e. Morena’s comprehensive election win and concerns about the party’s proposed constitutional changes.

Mexico needs a weaker peso “to prop up industry,” he added.

“Countries don’t become big by consuming more, they become big by producing more,” Guajardo said.

What do you see as the biggest barriers to even greater FDI in Mexico? 

Guajardo said that government policy or posture, water scarcity, insecurity and inadequate infrastructure are among the potential barriers to increasing foreign investment in Mexico.

Claudia Sheinbaum at a press conference
Guajardo says that he expects the government’s approach to energy policy will shift during the presidency of Claudia Sheinbaum, which could help spur more foreign investment. (Cuartoscuro)

He said he believes that the government’s posture — at least with regard to the energy sector — will improve during the presidency of Sheinbaum, who will take office Oct. 1.

Respect for the rule of law, “particularly in the energy sector,” is needed to create investor confidence, Guajardo said. There need to be “clear signs” that contracts will be respected “in the long term,” he added.

Meanwhile, water supply pressures as more and more companies relocate to Mexico is going to be a “huge issue,” Guajardo predicted.

“Communities will stand up to investment or to big business” over water, he said, adding that water availability, electric capacity, and a tight labor market will be new areas of due diligence for companies seeking to set up manufacturing operations in Mexico

Insecurity, “particular as it pertains to transportation,” is another potential barrier to FDI, Guajardo said, referring to things such as highway and train robberies.

Finally, the Isthmus of Tehuantepec is one example of a region of Mexico where a lack of infrastructure could hold foreign investment back, he said.

Port Coatzacoalcos, Veracruz
The port of Coatzacoalcos in Veracruz is part of the Isthmus of Tehuantepec trade corridor, which could be a booster for nearshoring investment in Mexico’s southern states. (Cuartoscuro)

The federal government has modernized the rail line between the Pacific and Gulf coasts across the isthmus, and hopes to lure companies to new industrial parks in the region with a range of tax incentives.

However, Guajardo said that more infrastructure is needed to convince companies to move to Mexico’s disadvantaged south.

“If you’re going to build a new plant, you want hospitals, you want airports, you want schools, you want roads,” he said.

“I think it’s still in its infancy,” he added, referring to the Interoceanic Corridor of the Isthmus of Tehuantepec project.

“It’s a great idea. Who’s not in favor of giving more jobs to people in need? But it’s more complicated than that,” Guajardo said.

By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)

Ancient artifacts found near island of Janitzio in Lake Pátzcuaro

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5 human bones, many of them femurs, in a cardboard box. They're among many ancient artifacts found on the island located in Lake Patzcuaro, Michoacan.
Among the impressive finds on the island was a collection of human bones in an excellent state of conservation with manmade grooves etched into them. (INAH/X)

The remains of a Purépecha boat called a tepari and other ancient artifacts have been uncovered during a massive cleanup operation to help save Lake Pátzcuaro, in the state of Michoacán, from extinction.

The traditional canoe — which stands out for its considerable length of 14.8 meters (48.5 feet) — was found in the vicinity of the island of Janitzio, located in Lake Pátzcuaro, which has been inhabited by the Purépecha people for centuries.

The beach on Janitzio Island, where an ancient artifact of a traditional Purepecha canoe called a tepari was found just under the surface of the island's hard mud. Lake Patzcuaro is in the background.
Another major find at the Lake Pátzcuro site was a 14-meter canoe-like traditional boat of the Purépecha people, called a tepari. As seen in this photo, the ancient artifact was found lodged in mud made hard by drought conditions in Lake Pátzcuro. (INAH/X)

The boat sank with a load of firewood, according to experts with Mexico’s National Institute of Anthropology and History (INAH), leading to speculation that Purépecha boatmen had just made a run to nearby Erongaricuaro and were returning to the island with their cargo.

The chance discovery was recorded in early May at the drought-stricken Michoacán lake, where more than 730 men and women are working to combat deforestation, a lack of rain, water theft, historical neglect and excessive planting of avocados and other fruits — conditions that have reduced Lake Pátzcuaro’s surface by 42%.

In announcing the findings on Monday, INAH noted that it is working with the local Indigenous Purépecha community to generate conservation and research strategies for the tepari, which was found lodged in hard mud. One idea is to create a museum on Janitzio.

The significant finding sheds light on historical boating practices in the region, INAH noted. The officials didn’t release an exact time period for when the boat sank as further analysis is needed.

Michoacán’s Environment Ministry (Secma) has assigned 10 people to support archaeologists on upcoming expeditions in the area.

INAH researchers and community authorities noted that the area being dredged has yielded “a significant amount of pre-Hispanic vestiges,” in much the same way that work on the Maya Train on the Yucatán Peninsula has led to thousands of archaeological discoveries.

Part of a ceramic bell-shaped artifact found on the island of Janitzio, in Lake Pátzcuaro, shown sitting on dried-out mud
The wide variety of artifacts found has the potential to tell researchers much about ancient Purépecha life around Lake Pátzcuaro. (INAH/X)

Materials recovered during the Lake Pátzcuaro work include “an important collection” of human bones, mostly femurs, that were handcrafted with grooves and are in an “excellent state of conservation,” according to INAH. 

Many ceramic urns and stone objects have also been found, which INAH officials noted “were thrown into the lake in pre-Hispanic times, surely as offerings.” At least one other canoe has been found, as well.

The remains were uncovered during the restoration and desilting work that is ongoing in Lake Pátzcuaro.

One of the priority efforts has been to make sure Janitzio, a favorite destination among tourists to the Pátzcuaro area, remains an island. In recent weeks, the water level has gone so low there that an isthmus is beginning to form between Janitzio and the mainland community of Jarácuaro.

Alejandro Méndez López, Michoacán’s environment minister, said at a press conference Monday that the situation is “critical.” The southwestern part of the island is separated from the mainland by a 30-meter channel that is “less than 50 centimeters” (20 inches) deep, and getting shallower every day, Méndez said. 

He also noted that Jarácuaro itself was an island about five decades ago.

With reports from La Jornada, Mi Morelia, Milenio and Pátzcuaro Noticias

Potential tropical cyclone approaches northeastern coast of Mexico

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Tropical Storm One projection Cyclone Albert
Tropical Storm One, a cyclone likely to be named "Alberto" is headed for the northern state of Tamaulipas. (SkyAlert Storm/NOAA/X)

The arrival of what could be the first named storm of the 2024 hurricane season has authorities along the coastline of the Gulf of Mexico on alert as meteorologists watch a potential tropical cyclone.

The U.S. National Hurricane Center (NHC) said as of 12 p.m. Mexico City time on Tuesday that there is a Tropical Storm Warning in effect for the northeastern coast of Mexico south of the mouth of the Rio Grande to Puerto de Altamira, as well as parts of the Texas coast. Mexico’s National Meteorological Service (SMN) says the potential tropical cyclone, to be named “Alberto” could make landfall in northeastern Mexico on Wednesday night or Thursday morning.

This water spout was seen from beaches in Tulum on Monday, as cloudy and rainy conditions continue in the area.

 

As of 10 a.m. Tuesday, the storm was located in the Bay of Campeche in the southwestern corner of the Gulf of Mexico. The National Hurricane Center said in their 12 p.m. advisory on Tuesday, “a turn toward the northwest and west with an increase in forward speed is expected tonight and on Wednesday, and the system is forecast to reach the Gulf coast of Mexico by Wednesday night.”

While the cyclone is projected to make landfall in southern Tamaulipas, it is also forecast to drench the states of Puebla, Campeche, Tabasco, Quintana Roo and Yucatán. 

The state of Quintana Roo has already seen torrential rains since Sunday, causing flooding in the cities of Chetumal and Cancún, where authorities reported an accumulation of 115 mm of rainfall overnight on Monday.

The SMN also warned of heavy rains in the interior of the country when the cyclone is forecast to push ashore on Thursday. 

Cities across the Yucatán peninsula have been affected by heavy rains since Sunday, which are expected to continue with the approaching storm. (Mara Lezama/X)

In addition to actions undertaken by the federal government — issuing alerts, closing ports and setting up response teams — state and municipal governments are also taking precautionary measures. Authorities will jointly monitor rivers, dams and reservoirs in the affected areas. The National Water Commission (Conagua) reported that reservoirs in Tamaulipas are only 20% full, so there is adequate space to capture the rainwater and reduce the impact of flooding.

The Yucatán state government issued a Blue Alert for high winds and high waves while in Veracruz the government issued a Gray Alert for heavy rains and high winds as a result of the cyclone.

The Nuevo León state government declared a maximum alert and civil protection authorities decided to close schools starting Wednesday, and continuing through Thursday and Friday as a precaution, according to a Tuesday morning post on X by Governor Samuel García

With reports from La Jornada, La Jornada Maya and El Universal

Have you tried Mexico’s delicious ‘drunken’ candies?

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Borrachitos sweets
Borrachitos are a staple of Mexican candy stores. Find out how to make your own delicious treats. (Fabian Montano Hernandez/Shutterstock)

You probably know we Mexicans love spicy sweets. But did you know we also love candy with alcohol? Called borrachitos — “little drunks” — these candies date back to the arrival of the Spanish and are a staple in Mexican traditional celebrations. They have the consistency of gummies, except they’re covered with sugar and infused with alcohol and fruit flavors. 

While there is no official record as to the birthplace of borrachitos, the most accepted theory is that the nuns of the Santa Rosa convent in Puebla — the same convent that created chile en nogada and mole poblano — created these sweets as a thank you gesture to the church’s benefactors. Due to their success, people started selling them. 

Kitchen of the ex-convent of Santa Rosa
Legendary dishes such as mole poblano, chile en nogada and borrachitos were allegedly created in this convent kitchen. (Museos Puebla/Facebook)

Made with cornstarch or gelatine, milk and sugar, borrachitos come in flavors such as strawberry, pineapple and coconut. 

Traditionally, the nuns infused the sweets with brandy, rum or eggnog.  As their popularity grew, different regions added their own flair to the delicacy. 

One of the most distinctive variants hails from Jalisco, which infused borrachitos with — you guessed it — tequila. Jalisco borrachitos have no fruit base, making tequila the main flavor. Another original version later appeared in Oaxaca, where the sweets were infused with mezcal, now one of Mexico’s trendiest spirits.

While the borrachitos in Puebla, Mexico City, Oaxaca, and other states are colored using red, green or Mexican pink dye, borrachitos in Jalisco don’t use dye at all. Instead, they remain a natural beige color to indicate the only flavoring is tequila. 

Borrachitos de tequila
Jalisco’s tequila-only borrachitos are unflavored and uncolored to indicate their purity. (Dulces típicos de don Raúl/Facebook)

Where to buy borrachitos?

Some supermarkets sell borrachitos in the dulcería, or candy section. However, these don’t usually taste as good as the artisanal ones found in tienditas, markets, traditional candy stores and on roadsides stalls connecting cities and towns. 

Since borrachitos were born in Puebla, the road to this city is one of the most popular places in all of Mexico to buy them. 

In Jalisco, the expat paradises of Chapala, Jocotepec and Ajijic, on the shores of Lake Chapala, are known for producing some of the best artisanal borrachitos in the state. Vendors typically sell them on the side of the roads in small plastic bags containing five or six sweets per bag. You can find borrachitos infused with tequila and eggnog or flavored with fruit; the latter come in red, yellow or green. 

If you’re not on the road and don’t live near traditional candy shops or stalls, Dulcerías D’Raque in Guadalajara has an extensive selection of artisanal borrachitos and traditional sweets from all over the country. Their tequila borrachitos are particularly delicious.

Can I prepare borrachitos at home?

For this recipe, you need little more than hot water and gelatin. (Freepik)

Borrachitos are so simple, that you can make your own at home. The process is simple: boil water with gelatin, add the fruit of your choice, then alcohol and sugar.  To simplify the process, you can substitute fresh fruit with flavored gelatine. Once the mix thickens, dust it with sugar before cutting it into rectangles or squares. 

Below you’ll find two different recipes for borrachitos: milk-based tequila borrachitos and fruit borrachitos. Enjoy! 

Tequila borrachitos 

Ingredients:

1 tbsp unflavored gelatin

1 cup water

½ cup whole milk

½ cup corn syrup 

1 ½ cups white sugar 

½ cup tequila or liquor of your choice

½ cup cornstarch

Preparation:

Mix the gelatin with water to hydrate it.

Add the milk to a saucepan with the sugar and corn syrup. Heat to boil over medium to low heat, stirring all the time. Once the mix thickens, add the hydrated gelatin and mix until all lumps disappear. 

Remove saucepan from heat and let the mix cool for a few minutes. Add the tequila and mix well.

Coat a rectangular glass mold with cornstarch, ensuring that all surface and sides are covered. Place the mixture in the mold and let it cool in the refrigerator for at least three hours. 

Once cooled, unmold the mix and use a napkin to remove any trace of cornstarch. 

Cut the mix into small rectangles and dust with white sugar.

Fruit borrachitos 

Ingredients 

1 tbsp fruit-flavored gelatin 

2 cups water

50 g cornstarch

½ cup of white sugar

3 tbsp of rum or liquor of your choice

Preparation

Heat 1 ½ cup of water in a saucepan. Once it starts to boil, add the sugar and mix until it dissolves. Add the gelatin and mix well. 

In a separate container, mix ½ cup of warm water with the cornstarch until all lumps disappear and you get an even consistency. Pour this mixture into the saucepan with the gelatin and continue mixing until it slightly thickens. 

Turn off the heat and let the mix cool for a few minutes. Add the liquor of your choice and mix one last time.

Pour the mix into a glass mold and let cool in the refrigerator for at least three hours. 

Once cooled, unmold. Cut the mix into small squares and dust with white sugar.

Gabriela Solis is a Mexican lawyer turned full-time writer. She was born and raised in Guadalajara and covers business, culture, lifestyle and travel for Mexico News Daily. You can follow her lifestyle blog Dunas y Palmeras.