The inflation rate for agricultural products in the first half of March, including for fruit, vegetables and meat, was 8.1%. (thelastcarmusai/Wikimedia)
Inflation declined more than economists expected in the first half of March, but still remains well above the central bank’s target rate.
The National Institute of Statistics and Geography (INEGI) reported Thursday that the annual headline inflation rate in the first half of the month was 7.12%, down from7.62% in February.
Inflation dropped to 7.12%, the National Institute of Statistics and Geography reported on Thursday.
The rate is the lowest since the second half of January 2022, and 0.14 percentage points below the median estimate of economists surveyed by Reuters.
Inflation has now declined during four consecutive fortnights, but the headline rate remains more than double the Bank of Mexico’s (Banxico) target rate of 3%, give or take one percentage point.
INEGI reported that the core inflation rate, which does not include some volatile food and energy prices, was 8.15% in the first half of March, down from 8.29% in February.
The publication of the data comes a week before central bank board members meet to discuss monetary policy. The bank’s benchmark interest rate is currentlyset at a record high of 11% after a 50-basis-point hike in February.
Inflation has now declined during four consecutive fortnights. (Wikimedia Commons / Estef93)
Most analysts expect Banxico will lift its key rate by 25 basis points next Thursday, which would mirror the interest rate increase announced by the United States Federal Reserve this week and increase the accumulated hikes during the current tightening cycle to 725 basis points.
“The data is good, but we cannot declare victory against inflation yet because the trends that worried Banxico the most, related to core inflation, are still there,” said Pamela Díaz Loubet, an economist specializing in Mexico at the French bank BNP Paribas.
“The … [data] doesn’t change our view that Banxico will hike 25 basis points in its next decision,” she said.
Janneth Quiroz Zamora, chief economist at the Monex financial group, said that the latest inflation data “supports the idea that the hiking cycle in Mexico is near an end.”
The Bank of Mexico, whose board members will meet next week to discuss monetary policy, has stated that it expects headline inflation to converge to its target of 3% in the last quarter of 2024. (Wikimedia Commons / Alfonso21)
“It does make it seem likely this will be the last increase,” she said before noting that “there’s still a red flag related to the inflation of services, which could lead to an additional increase in May.”
INEGI data shows that services were 5.68% more expensive in the first half of March than they had been a year earlier. That figure is the highest inflation rate for services since the second half of February 2003, the newspaper El Financiero reported.
The inflation rate for processed food, beverages and tobacco was 13.2%, while that for agricultural products, including fruit, vegetables and meat, was 8.1%.
Energy prices, including those for fuel and electricity, were 1.05% higher compared to the same period a year earlier.
Banxico said last month that it expects inflation to converge to its target in the final quarter of 2024 but noted that the projection is subject to a range of risks, including “pressures on energy prices or on agricultural and livestock product prices” and “exchange rate depreciation.”
The majority of weapons confiscated by authorities in Mexico have been traced back to sales in the U.S. (Shutterstock)
An appeal filed by Mexico’s Foreign Ministry (SRE) challenging the dismissal of its lawsuit against U.S. gun manufacturers has received numerous declarations of support.
The SRE submitted the appeal on March 14, challenging the dismissal of the case by the District Court of Boston in October 2022, in which the judge cited U.S. law that protects gun manufacturers from lawsuits when their products are used for their intended purpose.
The smuggling of guns such as these, seized in Nogales, Arizona is common — and Mexico wants manufacturers to take responsibility. (@CBPPortDirNOG/Twitter)
By March 22 — the deadline for proponents of the appeal to submit supporting amicus curiae (friend of the court) briefs — nine briefs had been filed in support of Mexico’s case.
The SRE saidin a statement that the briefs’ purpose was “to state to the judges the relevance of the case; highlight the positive impact that a responsible arms trade would have on the United States, Mexico, and the world; as well as make a statement on the applicable law.”
It went on to list actors who had filed briefs, including:
A former U.S. Customs and Border Protection commissioner and U.S. police chiefs, who reported that U.S.-made weapons trafficked to Mexico have caused a security crisis on both sides of the border and fueled the current fentanyl epidemic.
Prosecutors from 17 U.S. states, who questioned the U.S. law granting immunity to the gun industry, as well as 24 U.S. district attorneys, who said that trafficked weapons harm their communities by facilitating drug flows to the U.S.
Five Caribbean countries (Antigua and Barbuda, Bahamas, Belize, Jamaica and Trinidad and Tobago), who said that U.S. weapons fuel violence and crime across the region.
International law specialists, who argued that immunity laws should not apply in this case, as well as Mexican jurists who argued that the principle of access to justice means the Mexican government’s lawsuit should be allowed to proceed.
Activists and victims of armed violence from both sides of the border, who argued that a responsible weapons trade is essential to stop the deaths of innocent people.
The Mexican government first filed the lawsuit in August 2021, demanding US $10 billion in damages from United States weapons manufacturers “who due to their carelessness and negligence, actively facilitate their weapons being trafficked to Mexican territory.”
After the Boston court ruled that gun companies were protected by the U.S. Protection of Lawful Commerce in Arms Act (PLCAA), Mexico deepened its legal arguments, saying that U.S. immunity laws should not apply to criminal damages in Mexican territory.
On Oct. 10, 2022, the Mexican government filed a second lawsuit in Tucson, against gun stores near the Mexico-U.S. border that it believes have traded negligently. On Oct. 26, Mexico requested to appeal the Boston court ruling, then requested an advisory opinion from the Inter-American Court of Human Rights on Nov. 11.
In the briefs submitted this week, numerous U.S. prosecutors backed Mexico’s viewpoint, saying the PLCAA only protects gun manufacturers in the case of misuse by third parties, not in the case of its own misconduct.
“It does not eliminate all forms of accountability for gun manufacturers,” the brief said.
The brief from U.S. law enforcement officials made similar arguments.
“U.S. (armament) producers have long been aware that their practices put weapons in the hands of traffickers who trade them across the border to Mexican cartels.”
A coalition of Mexican human rights groups and researchers who contributed briefs to the court stressed the “deadly” consequences of trafficked U.S. weapons, pointing out that gun homicides increased by 570% in Mexico from 1997 to 2017.
The new aircraft, registered XA-VXI, had a female flight, maintenance and planning crew on it's way from Germany to Mexico. (Viva Aerobus)
Low-cost airline Viva Aerobus marked the arrival of its 70th aircraft with an all-female crew – including the captain, first officer, flight planners, legal staff, support engineers, and maintenance personnel.
The new Airbus A321neo, registered XA-VXI, flew from Airbus headquarters in Hamburg, Germany to Monterrey International Airport (MTY) with fueling stops at Keflavik International Airport in Iceland, and Bangor Airport in the United States.
Viva Aerobus also anticipates the delivery of 28 more A321 aircraft. (Viva Aerobus)
With the arrival of the new aircraft, Viva Aerobus’ fleet now has a total of forty-two Airbus A320 and twenty-eight Airbus A321. The airline expects to receive twenty-eight additional A321 aircraft in the coming years.
Between December 2021 and March 2023, the company’s fleet grew from fifty-five jets to seventy, an increase of 27%.
Since January, Viva Aerobus has announced the opening of new international routes such as Cancún to Quito, Ecuador, and Monterrey to Bogotá, Colombia. Nationally, it now connects Tijuana with the new Felipe Ángeles airport in Mexico City and has increased frequencies between Guadalajara and Puerto Vallarta.
The airline has grown steadily since 2021. According to Director General Juan Carlos Zuazua, the airline grew a little more than 22% in the first two months of 2023 compared to the same period in 2022.
Firefighters were quickly on the scene to douse the flames. (Protección Civil)
A pipeline containing hydrocarbon gas exploded late Wednesday afternoon in the state of México, with authorities quick to blame huachicoleros–black market fuel thieves
The incident occurred in the municipality of Atlacomulco, 63 kilometers from the state capital of Toluca. The blast happened at approximately 4:35 p.m. in the ejido (village lands) of San Lorenzo.
The remains of a huachicolero vehicle after a similar explosion in 2019. (Cuartoscuro)
Municipal and state officials that arrived on the scene, along with firefighters and other emergency service providers, said the explosion was caused by illegal extraction from the nearby Petróleos Mexicanos (Pemex) pipeline.
Clouds of black smoke and flames could be seen several kilometers away, but there were no reports of any deaths or injuries, although two vehicles and a building caught fire.
The area was cordoned off by local law enforcement, while firefighters fought the flames. Pemex officials were on hand to tend to the fuel leak, carry out repairs and begin an investigation along with government authorities. Reports from the scene suggest that six 1000-liter drums were recovered near the pipeline.
Pipeline explosions from people stealing petroleum and gas are nothing new in Mexico. The worst incident in recent years was a horrific explosion in 2019 in which at least 66 people were killed and 76 injured near Pachuca, Hidalgo.
The new UN World Happiness report has seen Mexico rise to 26th place on the list of the world's happiest countries. (Bernandino Hernández/Cuartoscuro)
Mexicans have grown happier since 2020, according to the latest United Nations report on world happiness.
The country has moved up 10 places, to the 26th position on the list of the world’s happiest nations.
Social support has been key to Mexico’s rise through the rankings in 2023. (Crisanta Espinosa Aguilar/Cuartoscuro)
The report, published by the UN Sustainable Development Solutions Network, ranks 137 countries by their average life evaluations over the preceding years — in this case, the three years of the Covid-19 pandemic, from 2020 to 2022.
Finland topped the list as the happiest country for the sixth consecutive year, followed by its Nordic neighbors Denmark and Iceland. At the other end, Lebanon (136th) and war-torn Afghanistan (137th) remain the two gloomiest countries in the survey.
Amongst the big winners, Israel moved from ninth to fourth, with the Netherlands, Sweden, Norway, Switzerland, Luxembourg and New Zealand rounding out the top 10.
Despite the pandemic, the report said that life evaluations have been “remarkably resilient,” with global averages close to the same levels as the pre-pandemic years of 2017–2019.
“Even during these difficult years, positive emotions have remained twice as prevalent as negative ones, and feelings of positive social support twice as strong as those of loneliness,” John Helliwell, one of the authors of the World Happiness Report, said in a press release.
“Benevolence to others, especially the helping of strangers, which went up dramatically in 2021, stayed high in 2022,” Helliwell told CNN in an interview.
Encouragingly, social support was twice as prevalent as was loneliness in seven key countries across six global regions, including Mexico.
“The importance of these positive social relations helps further to explain the resilience of life evaluations during times of crisis,” the report said.
Governor Sinhue said that the association would work to turn the Bajío region into a data hub. (@diegosinhue/Twitter)
The Mexican Association of Data Centers (MEXDC) has officially commenced operations and anticipates an initial investment of up to US $8.5 billion in the Bajío region, an area that includes Aguascalientes, Guanajuato, Querétaro and San Luis Potosí.
The association seeks to strengthen Mexico’s development in the industry by concentrating the largest cluster of data centers in Latin America, Guanajuato Governor Diego Sinhue Rodríguez Vallejo said during the launch event. “We seek to move from manufacturing to ‘mind making’,” the governor added.
One of the new developments will be the KIO center in Queretaro. (KIO)
President of MEXDC Amet Novillo said that the country expects investment of between 600 to 800 megawatts of capacity into data centers — representing around US $8.5 billion of investment. It will largely be allocated to the Bajío.
In the data center industry, megawatts are usually reserved for wholesale colocation customers in need of enough power to host thousands of servers and IT hardware. Colocation refers to data centers hosting a customer’s hardware offsite from the customer’s property.
Governor Sinhue said MEXDC’s alliance with the Bajío is thanks to the region’s geographical location and its infrastructure. Almost 60% of the country’s population is only within a six-hour drive, the governor explained.
“Those people require Uber, UberEats, autonomous cars, and seismic alerts. They need to save photos, hold online meetings, send emails, and make online purchases,” he said. “Data centers are at the heart of it all.”
Brazilian company Odata has built the largest data center in Mexico to date, but more are expected to follow. (Odata)
Industries such as manufacturing, entertainment, telecommunications and finance also benefit from data centers, Novillo added. “We are talking about a digital transformation throughout the industry of a country,” he said. “Everything from a photo on a social network to our financial statements to stock transactions is stored at the data center.”
Data centers require massive amounts of energy to operate. To optimize its use, Governor Sinhue said they are working to create their own local energy agencies and to use hydrogen energy, green energy and hydrogen plants to guarantee clean energy in the future.
Querétaro already has a state energy agency tasked with ensuring energy development. During the event, the state’s Minister of Sustainable Development, Marco Antonio del Prete explained that the agency has instructions from Governor Mauricio Kuri to find ways of collaborating with companies in the industry.
“[The state government needs to] collaborate so that they can use clean energy so that they can access fiber optics and good connectivity so that the facilities are safe,” he emphasized.
According to Minister Prete, Querétaro already accommodates 10 data centers and is expecting 18 new projects, including one from Microsoft. He explained that these are not real estate projects but “productive investments,” since infrastructure and equipment need to be renewed every couple of years. Companies also need to be in compliance with new regulations in matters of digital waste, data protection and the use of energy, he said.
Finally, Prete highlighted the region’s benefit for the housing of data centers.
“Querétaro is a strategic area in the country […] because there are no earthquakes [and] no hurricanes, and this represents a great opportunity to generate added value.”
Kerry arrived in Mexico for a whirlwind visit to meet with the president as well as Mexico's National Conference of Governors. (Presidencia)
Mexico and the United States need to “act quickly” in the fight against climate change, U.S. Ambassador Ken Salazar said Tuesday after a meeting in Oaxaca attended by officials including President López Obrador and U.S. Special Presidential Envoy for Climate John Kerry.
In a statement on the Embassy’s website, Salazar said that U.S. and Mexican officials spoke about “crucial issues for our countries and the whole world.”
“It’s clear to me that [President López Obrador] understands the degree to which our futures are now inextricably linked,” Kerry said.The two countries need to “confront climate change together” and make the transition to using clean energies, he added.
“The recentreport from the United Nations Intergovernmental Panel on Climate Change … is an urgent call to act against climate change. We have to act quickly and efficiently because we are running very behind. Our conversations were directed at that as well as complying with our climate commitments,” Salazar said.
Foreign Affairs Minister Marcelo Ebrard said at the United Nations Climate Change Conference in Egypt (COP27) last November that Mexico would collaborate with the United States to double its capacity to produce renewable energy.
“In this meeting we held serious conversations and learned more about the basic structure needed in this energy transition,” U.S. Ambassador to Mexico Ken Salazar said after the bilateral meetup.
Salazar said in his statement Tuesday that officials spoke about future solar and wind projects but did not offer specifics. The ambassador added that they discussed “steps to follow to reduce emissions more quickly.”
“In this meeting we held serious conversations and learned more about the basic structure needed in this energy transition,” Salazar said.
“… The private sector plays a crucial role, both in investment and financing as well as in technology. … We’re ready for [private companies] to be part of this work to provide clean, affordable and reliable energy to our nations,” he said.
However, under López Obrador’s leadership, Mexico’s government has not been particularly welcoming of private energy investment, including in the renewables sector. It has implemented policies that favor the state-owned Federal Electricity Commission (CFE).
Both the United States and Canada are challenging these policies under provisions of the USMCA free trade pact. Their challenges argue that U.S. and Canadian energy companies operating in Mexico are being treated unfairly.
John Kerry has made seven trips to Mexico as the United States’ Special Presidential Envoy for Climate. (Presidencia)
“However, the work can’t stay on the table. We have to deepen it and make it a reality. We can and we must do more in favor of the prosperity and well-being of our families and for the future of the planet,” he said.
At a press conference after Tuesday’s talks, the ambassador made it clear that he hoped CFE chief Manuel Bartlett would travel to Washington D.C. as soon as possible for talks aimed at accelerating the growth of the renewables sector in Mexico.
Salazar expressed that view after Bartlett said at the same press conference that the next bilateral climate meeting would take place in two or three months.
“With all respect, Manuel, we have to [hold the meeting] sooner than in two or three months because there is a lot of work to do,” Salazar said, adding that it was time to put “the action plan” into effect.
The CFE uses nonrenewable sources, including coal, gas and fuel oil, to generate most of its electricity, but the commission also operates renewables facilities, including hydroelectric plants and a largesolar farm in Puerto Peñasco, Sonora, that was officially opened in February even though it is not yet fully operational.
While López Obrador has praised the Sonora solar plant and has shown muted support for other renewable projects, he has championed the continued use of fossil fuels and argues that the transition to clean energy cannot be carried out hastily.
While voicing support for tackling climate change, President López Obrador has invested in an energy independence strategy that relies greatly on fossil fuels and refineries. (Presidencia)
The president said earlier this month that he and Secretary General of OPEC Haitham al-Ghais — whopraised Mexico for investing in oil refineries during a visit to Mexico City —understood each other very well given their shared commitment to the oil industry.
Despite that commitment, López Obrador has pledged that his government will work independently,and with the United States, to combat climate change.
Kerry welcomed Ebrard’s more ambitious commitments announced at COP27, saying at the time that Mexico and the United States have a shared “vision” for a clean energy future in North America.
Before the conference in Egypt,Ebrard said that Mexico needs to increase renewable energy production “at a rate even faster than the United States” to ensure it can comply with any clean energy requirements the U.S. imposes on exports to that country.
In addition to attending the climate talks on Tuesday, Kerry, at López Obrador’s invitation, also attended a ceremony in San Pablo Guelatao, Oaxaca, to mark the 217th anniversary of the birth of Mexican president Benito Juárez.
In a brief speech, Kerry said that he saw “a wisdom in [López Obrador’s] leadership that wants to undo some of the wrongs of the past and help to promote the interests of the people.”
“And it is clear to me that he understands the degree to which our futures are now inextricably linked,” said Kerry, who has now made seven trips to Mexico as climate envoy.
“That is not a political statement; that is not an ideological statement,” he added.
“That is a statement based on the reality of science and the report that just came out a few days ago from the United Nations warning all of us that we must take the steps necessary to reduce the rate of increased warming on the planet,” Kerry said.
Juan O'Gorman's mural featuring Vasco de Quiroga highlights the strong influence Thomas More's 1516 book "Utopia" had on Michoacán's first archbishop, who built an artisan manufacturing system among the Purépecha people.
If you spend any time in the Lake Pátzcuaro area, you will undoubtedly come across the name Vasco de Quiroga. Almost venerated here, he carries the Indigenous title of tata, literally “father,” but the word is infused with meaning from the area’s spiritual and political past.
In statue form, Quiroga still watches over the main square of Pátzcuaro. His influence can be seen throughout the city, giving it a much different feel than other central Mexican colonial communities. His work is likely responsible for conserving Purépecha culture and identity here, although that was not his goal.
Quiroga was born in Ávila, Spain, to a well-connected family. Traditionally, his birth is thought to be the year 1470, although this has been disputed. He was not educated as a priest but rather in canon law. He was named a oidor, or judge, of the second Real Audiencia of Mexico, the court that governed New Spain in the years immediately following the conquest of Tenochtitlán.
The First Audiencia was a disaster both according to the Indigenous peoples and the Spanish, and so Quiroga’s mission upon arrival in 1531 was to salvage the situation in favor of the latter.
Quiroga was an idealist for his period, heavily influenced by Thomas More’s book “Utopia.” This word has a more secular meaning today, but in Quiroga’s time, the idea of a utopia was to create a social order that reflected heaven as much as possible.
Quiroga translated More’s ideas into “hospital-towns,” where “hospital” referred to safe areas for the Indigenous people to gather, reorganizing them quasi-communally in order to teach them Christianity and Spanish culture.
A statue of Vasco de Quiroga still overlooks the main plaza of Pátzcuaro, Michoacán, a nod to his lingering impact on this part of Mexico since the colonial era. (LBM1948/ Wikimedia Commons)
Quiroga’s work began in Santa Fe, then in a small town in the Valley of Mexico, using his own money. But his destiny was located in the lands of the former Purépecha Empire.
After the destruction of Tenochtitlán and with their communities already suffering from smallpox, Indigenous authorities in the major Purépecha city of Tzintzuntzan surrendered to Spain in hopes of better treatment.
They were sorely disappointed. The abuses of the Real Audiencia’s leader, Nuño de Guzmán, and company were so bad that many of those who didn’t choose outright rebellion fled for the mountains.
Quiroga came in 1533 to assess the situation, eventually sending Guzmán and others back to Spain in chains. That out of the way, Quiroga set about repeating what he did in Santa Fe but on a grander scale.
Quiroga enticed the Indigenous back into life under Spanish rule, starting in Santa Fe de la Laguna and Santa Fe del Río. The focus was on (Spanish) order, religious observance, work, education and “practical arts,” with just about every aspect of life regimented.
The Second Audiencia gave way to the appointment of New Spain’s first viceroy in 1535. Quiroga was offered the newly-created job of Archbishop of Michoacán. He was not a priest, but that was quickly remedied, and he continued his work under ecclesiastical authority.
He moved the diocese to Pátzcuaro in 1537, founding a cathedral and the Seminary of San Nicolás (today the Universidad Michoacana de San Nicolás de Hidalgo). The seminary was open to both Spanish and Indigenous applicants.
Quiroga’s work was instrumental in the development of many central Michoacán towns, and his reach extended into Salamanca (Guanajuato) and even Guadalajara. But he had another legacy: Michoacán’s culture of handcrafts — one of the most important in Mexico.
Cover from a 20th-century popular series of books about historical figures in Mexico, this one depicting Vasco de Quiroga protecting an Indigenous person from abuse. “Tata” is the Purépecha word for “father.”
The Purépecha were already accomplished artisans, more advanced in metalworking than even the Aztecs. When Quiroga organized his hospital-towns, he assigned many towns to a specific craft in order to avoid competition and to promote trade among them.
Many of these towns maintain their assigned craft today: copper working in Santa Clara de Cobre, musical instruments in Paracho and different styles of pottery in the towns of Tzintzuntzan, Patamban and Capula, just to name a few.
Except for an eight-year period between 1546 and 1554 (due to Church business), Quiroga remained in Michoacán for the rest of his life. His aim was to extend his concept of utopia all over New Spain. But his ideas never gained widespread acceptance outside the Lake Pátzcuaro region, because many Spanish thought they were unworkable or would cut into their ability to profit.
Indigenous people today are particularly fond of Quiroga’s legacy because he worked against the worst of Spanish abuse. In his most famous piece of writing, “Information on Rights” (“Información en Derecho”), from 1535, he argues against the Crown’s reneging on a promise not to enslave the conquered Indigenous — albeit unsuccessfully.
There was even a movement to have Quiroga canonized starting in 1997, but ended in 2004.
Purépecha artisans were entering the copper (and bronze) age when the Spanish colonists arrived. Today, Santa Clara del Cobre, Michoacán, is renowned in Mexico for its work in this metal (Alejandro Linares Garcia)
But Quiroga was no saint. Many of his ideas would be considered cruel and authoritarian today, not to mention racist. Like other priests, he worked to destroy the old beliefs (rather unsuccessfully in his lifetime) and social order.
Despite working against slavery, he did have slaves — who were released upon his death. He did not support preserving or documenting Indigenous languages and cultures and even tried to get the Inquisition to ban a Christian treatise published in Purépecha.
It’s necessary to frame Quiroga’s work in the context of his times in order to understand why he remains important today.
Leigh Thelmadatter arrived in Mexico over 20 years ago and fell in love with the land and the culture in particular its handcrafts and art. She is the author of Mexican Cartonería: Paper, Paste and Fiesta (Schiffer 2019). Her culture column appears regularly on Mexico News Daily.
The Latin American and Caribbean Air Transport Association has joined critics of President Andrés Manuel López Obrador's proposal to authorize foreign airlines to operate domestic flights within Mexico. (Wikimedia Commons / ProtoplasmaKid)
The Latin American and Caribbean Air Transport Association (ALTA) has added its voice to criticism of a proposal to allow foreign airlines to fly domestic routes in Mexico.
ALTA’s criticism follows similar concerns expressed by aviation workers, domestic airlines and the National Chamber of Air Transport Services. (Wikimedia Commons / ProtoplasmaKid)
The ostensible aim of including cabotage in the bill is to increase air connectivity in Mexico and reduce costs for passengers, but it’s often appeared that its real goal is to increase use of theFelipe Ángeles International Airport, an army-built airport that opened north of Mexico City a year ago and is one of the president’s flagship projects.
While discussing the bill at a December 19 press conference, López Obrador lashed out at the Mexican aviation industry, accusing airlines of exacerbating aviation problems by resisting transferring routes to the AIFA.
“We are going to seek to reach an understanding with the airlines,” he said at the time. “There are several options. One is to help us not to saturate the current airport [the Mexico City International Airport] by having [routes run through] Felipe Ángeles Airport, because there is a kind of resistance [to doing so], although they say there isn’t.”
“The other option is cabotage.”
Cabotage, which allows foreign companies to operate transportation services within a country, is perceived to be AMLO’s response to unwillingness on the part of Mexican airlines to serve the Felipe Ángeles International Airport (AIFA). (Wikimedia Commons / ProtoplasmaKid)
ALTA said in astatement Tuesday that cabotage should only be authorized for foreign airlines under certain circumstances, none of which exist in Mexico.
Mexico is already well-served by air routes, the airline industry is strong and the air travel market is working well, the association stated.
“In Mexico there are 220 routes operated by eight local airlines that serve the 32 federal entities. Mexico is a remarkably well-connected country,” ALTA said, noting that more than 107 million passengers traveled to, from or within Mexico in 2022 and that over half that number took domestic flights.
The association said that letting foreign airlines fly domestic routes “is not a measure related to lowering the cost of plane tickets” and noted that only 31 countries around the world allow the practice, in most cases as part of reciprocal arrangements.
Although López Obrador has suggested that allowing cabotage would lower plane ticket prices for Mexicans, industry groups have warned that it could do just the opposite, as well as reduce connectivity. (Wikimedia Commons / Elemaki)
“Contrary to what might at first seem to be the case, allowing cabotage is an extremely aggressive measure that weakens the local industry and ends up being detrimental to the passenger and the movement of cargo, and consequently to the country in terms of its income from taxes, job creation and the number of routes, which would be reduced,” ALTA said.
ALTA quoted CEO José Ricardo Botelho as saying that “effective and aggressive” competition already exists between airlines in Mexico, creating “more and better options” for passengers.
“It’s an industry that creates direct jobs and promotes tourism, business and investment in all corners of the country,” he said, adding that authorizing cabotage for foreign airlines would allow them to capture a share of the domestic air travel market without investing in Mexico and creating jobs here.
If allowed to operate domestically in Mexico, Botelho said, foreign airlines would focus on “central, profitable routes” and thus “displace local operators that generate investment and jobs in the country, even in remote areas” and which operate less profitable routes, such as those to smaller destinations that are not popular with tourists.
In the long term, the entry of foreign airlines to the domestic air travel market would “reduce connectivity … and options for citizens,” Botelho said.
The ALTA chief suggested that one way to make air travel in Mexico cheaper would be to reduce “extremely high taxes and fees that increase the price of tickets.”
López Obrador claimed in October that allowing foreign airlines to fly domestic routes would help reduce ticket costs and said that “there are a lot of places that can’t be reached by plane because they’re not served by the current airlines.”
His proposal — discussion of which was tabled in the lower house of Congress last week — has been rejected byaviation workers, the National Chamber of Air Transport Services (Canaero) and Mexican airlines such as Aeroméxico and Volaris.
Canaero said Tuesday that it shared ALTA’s view and earlier this month issued its ownstatement asserting that allowing foreign airlines to fly domestic routes would increase the price of plane tickets and reduce air connectivity and could bankrupt Mexican airlines, among other negative consequences.
The lack of water management legislation is creating a crisis in Mexico, says IMCO. (Cristian Hernández/Cuartoscuro)
Mexico needs to update legislation surrounding access and distribution of water in the country, said the Mexican Institute for Competitiveness (IMCO).
In a press release to celebrate World Water Day, the group called on the federal government to ensure that access to clean water and sanitation is enshrined in law.
INEGI statistics showed that many states do not have adequate access to drinking water. (INEGI)
The United Nations recognizes access to water as a basic human right.
Twelve million Mexicans currently do not have access to clean drinking water. According to government statistics, a survey of national water infrastructure revealed that four states have no drinking water treatment facilities at all. A further six had fewer than three.
The National Institute of Statistics and Geography (INEGI) revealed that 58% of the country does not have wastewater treatment — although these statistics were originally published in 2020.
Despite a 2012 resolution to implement a new general water law, no new legislation has been passed since 1992. The Supreme Court has denounced this failure to issue new legislation, calling it a “legislative omission.”
This large logistics center was listed as a small ranch in Tepozotlán, México state, allowing it to exploit poor water management controls. (contralacorrupcion.mx)
A major issue identified by IMCO was the misuse of water extraction rights. Extraction titles last between five and 30 years but have no transparent transfer process — meaning that there is little oversight of how much water is being used and who is using it.
There have been reports that in some regions of the country, water rights have been provided to farmers free of charge but have later been discovered to have been diverted to industrial parks, which use significantly more water. Without proper measurement and government oversight, IMCO estimates that up to 15% of clean drinking water in Mexico has been misappropriated in this manner.
This misappropriation is particularly critical, as droughts have intensified over the last decade, and the overexploitation of aquifers has increased by 15%, placing more stress on an already precarious system.
Amongst the problems facing Mexico are poor management of public resources and an inability to track water levels and basins at a national level. This has made water management a geopolitical issue, rather than a geophysical one, and has limited the ability of the Federal Water Commission to monitor supply and demand.
There is still insufficient wastewater management throughout the country. This graph shows the number of treatment facilities by state. (INEGI)
A lack of monitoring in piping systems also means that authorities are unable to identify leaks in real-time, leading to significant wastage and supply disruption.
To address these problems, the federal Water Resources Commission (Conagua) has proposed a new national fund for water infrastructure, designed to meet the needs of the country by 2030. If approved, IMCO estimates this will cost 600 billion pesos.
Both the current government and opposition have agreed that passing a new law should take priority, but no action has yet been taken to do so.
“A more modern legal and regulatory framework will not solve the challenges of water management by itself,” warns IMCO, “but it is an essential condition to guide the country toward more efficient water systems that guarantee access to water for all Mexicans.”