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Tag Archives: mexico

PayPal, Western Union Named & Shamed for Overcharging the Most on Money Transfers to Mexico

Remittances to Mexico is a $36-billion-a-year business. By Nick Corbishley, for WOLF STREET: Remittances from workers of Mexican descent based mostly in the US, but also in other countries, are a lifeline for Mexico’s economy, accounting for almost 3% of GDP. Millions of people depend on relatives working in the U.S. In some Mexican states, they can represent as much as 10% of total revenues. Most of that money gets spent very quickly in the Mexican economy, often on rents or building...

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US Whacks at Wage-Repression Model in Mexico, Demands Inspections, Industry Has a Cow

NAFTA 2.0 gets complicated for US & global manufacturers, particularly automakers. By Nick Corbishley, for WOLF STREET: This week, an 11th-hour demand from Democrat members of the U.S. Congress concerning the U.S.-Mexico-Canada Agreement (USMCA), the trade agreement to replace NAFTA, has put Mexico’s government and global manufacturers in a tight spot. The U.S. lawmakers are calling for a program of inspections to enforce the beefed up labor standards included in the new deal,...

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Mexico’s Cancelled $13-Billion Zombie-Airport Refuses to Die

The people voted to scrap the project that was one-third finished, $4 billion over budget, mired in allegations of corruption, and built on an unstable lake-bed. But it has a life of its own. By Nick Corbishley, for WOLF STREET: A year ago, the Mexican people — albeit a small fraction of the electorate — voted to scrap a new $13-billion airport for the capital that was almost one-third finished, at least $4 billion over budget, and mired in allegations of corruption. Around $5 billion...

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The Journal’s Muddled Reasoning on Illegal Drugs

In today’s Wall Street Journal, the editors address the recent murder of some Americans in Mexico by a gang. Although the reports I’ve read  (here’s one example) claim that it was a drug gang (everyone misuses the word “cartel”), I haven’t seen enough evidence that it was. I suspect, though, that the odds are high that the murderers were part of a drug gang. What has been fantastic about the Wall Street Journal‘s unsigned editorials on economics over the years I’ve...

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Global Slowdown? Mexico’s GDP Declines Year-Over-Year for First Time Since 2009

Not just exports and manufacturing – but services stall. By Nick Corbishley, for WOLF STREET: In the third quarter of 2019, Mexico notched up its first year-over-year decline in GDP since the final quarter of 2009, when it was in the midst of a sharp recession brought on by the Financial Crisis. According to a preliminary estimate published by Mexico’s statistical institute INEGI, in the third quarter, the economy shrank 0.4% compared with the same quarter a year earlier. On a...

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JP Morgan Chase, BofA, Citi, Barclays, Deutsche Bank, BBVA, Santander Accused of Rigging Government Bond Auctions in Mexico. Bank of Mexico Implicated

Collusion and “absolute monopoly practices.” By Nick Corbishley, for WOLF STREET: Mexico’s antitrust agency Cofece has accused the domestic subsidiaries of JP Morgan Chase, Bank of America, Citigroup, Barclays, Deutsche Bank  Santander, and BBVA of colluding to rig Mexican bond prices, in particular treasury notes, over a ten-year period. Following a three-year investigation, Cofece on Monday declared that it had notified “various economic agents” of their likely involvement in a...

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GM, Ford, BMW, VW, Honda Shift More Production to Mexico. Auto Imports Surge Despite Decline in US Sales

But Mexican exports to other countries plunge, tripped up by global auto slowdown. By Nick Corbishley, for WOLF STREET: Automakers continue to shift their production base from the U.S. to Mexico, where labor costs pale in comparison with those in the U.S., despite growing opposition from U.S. auto workers and their unions. U.S. imports of new vehicles from Mexico surged by 8% in the first three quarters of 2019, according to the auto manufacturers association AIMA, released by Mexico’s...

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These Incidents Raise New Questions about the Security & Operability of the Banking System in Mexico

For now, it’s deny, deny, deny. By Nick Corbishley, for WOLF STREET: For seven hours on Friday, three of Mexico’s four biggest banks, BBVA, Citibanamex and Banorte, suffered payment system failures at exactly the same time, leaving millions of consumers unable to withdraw money from ATMs, make payments with their credit or debit cards, or access their online and mobile accounts. From noon, many of the banks’ customers vented their anger on social media, complaining that they could not...

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Bank of Mexico Raises Alarm About Mexico’s Economy

“Particularly worrisome” is that this slowdown “has taken place in a context where the US economy is growing above potential.” By Nick Corbishley, for WOLF STREET: The bad omens are stacking up for Mexico’s faltering economy as both domestic consumption and investment dry up while the challenges facing the country’s heavily indebted state-owned oil giant, Pemex, continue to rise. That’s the broad conclusion in the minutes of the latest meeting of the Bank of Mexico’s governing board....

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Mine Output Fell Sharply in 3 Top Silver-Producing Countries in H1

Mine output fell significantly in three of the world’s top silver-producing countries through the first half of the year.Peru’s silver production fell 10%, mine output in Mexico fell 4%, and silver production in Chile was down 7%, according to data released by government agencies in those three countries.According to the data compiled by SRSrocco, in total, mine output in Peru, Mexico and Chile was off by 373 tons through January through June. (Mexico’s data was from January-May.)Chile,...

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