Mexico-US matters

[Crafty_Dog]

a) raw ingredients for fentanyl;

b) 50k and on way to 125K by year's end of Chinese MAMs (Military Aged Males);

c) now this:

"China and Mexico conducted their first direct flight on Sunday with both Ambassadors in tow. The Chinese Ambassador to Mexico said this will facilitate economic and personnel ties between China and all of Latin America."

[Crafty_Dog]

The Americas
Brodie Kirkpatrick, Expeditionary Intelligence

Political Violence in Mexico at Historical High as Elections Draw Closer

As Mexico prepares for a general election next month, political violence has plagued the nation at all levels. Many candidates have been killed, injured, otherwise threatened, or withdrawn from their races.


Introduction

Throughout the month of May, multiple media outlets reported that violence in Mexico leading up to this June’s general election is the highest it has been in recent history. More than two dozen candidates for various offices have been killed leading up to the June 2 vote; hundreds have dropped out of races. Additionally, hundreds of others have asked the federal government for security details. The goal of armed groups is to install corrupted or coerced leaders in local offices so they can better exploit Mexican communities.

Once largely focused on shipping drugs to the United States, the cartels now also smuggle migrants, extort businesses, and win contracts for firms they control.

Cartels have focused most of their efforts on local politics in influential states vying to control things like municipal police, public works, and many other essential departments of state and local governments. This strategy makes controlling mayoral offices crucial, however, despite the large focus on local municipalities, candidates for governor and senate seats are also at high risk. Cartels have targeted candidates from all of Mexico’s major parties. In Maravatío, a municipality of 80,000 in the central state of Michoacan, three candidates for mayor have been killed; two from Morena, President Andrés Manuel López Obrador party, and one from the opposition National Action Party, or PAN. Carlos Palomeque, head of the PAN in Chiapas, says nearly two dozen mayoral candidates from the party have dropped out of their races. It used to be that the cartels bought off voters, he says. Now, “they force candidates from the race. It’s cheaper.”

López Obrador accuses the opposition and media of exaggerating the violence in states across Mexico to discredit his efforts against organized crime. Yet even López Obrador’s protégé, presidential front-runner Claudia Sheinbaum, was stopped by masked men last month in a region of the state controlled by the Sinaloa cartel. The men warned her to “remember the poor people” and waved her through their checkpoint.

Can President Lopez Obrador End Mexico's Drug War?
Despite AMLO’s claims of exaggeration, just in the past 45 days, front-running mayoral candidates in influential states such as Guanajuato, Chiapas, Puebla, and Tabasco have been killed by gunmen. The most notable of those killed was Carlos Narvaez Romero, a member of the Grupo Tabasco, a collective of politicians and influential Mexican business owners closely aligned with President AMLO such as Adán Augusto López, former Secretary of the Interior, Octavio Romero Oropeza, general director of Petróleos Mexicanos (PEMEX), Javier May, Morena candidate to the governorship of said entity, as well as Rafael Marín Mollinedo, Mexico's ambassador to the World Trade Organization (WTO), who was also head of the National Customs Agency. Romero was slated to succeed the former head of customs who was killed in 2022. 

Analyst Comment

While political violence is nothing new for Mexico, this election season has proven to be the most violent in recent history. Despite having high political violence, Mexico’s non-state actors vying for influence are not stoking the violence to eventually conduct a coup. Adversely, the cartels want control and to be able to operate behind the scenes with impunity without being thrust into the spotlight of the international stage. Traditionally, cartels have paid off, blackmailed, or coerced officials. However, the recent uptick in violence may signal a change in the modus operandi while also highlighting the lack of control the government has over the situation. To further cement this, cartels have consistently proven to the public that if they speak out against the violence they will likely be tracked, kidnapped, tortured, and/or killed without recourse from authorities as there are multiple accounts of this. Beyond the uptick in violence, the profile of the individuals murdered such as Carlos Romero who was slated to be the next head of customs for the entirety of Mexico has also raised much concern of whether an end to this violence is in sight or if this will be the normal for upcoming elections. Going into the June elections the possibility for violence remains extremely high and is likely to worsen.

[Crafty_Dog]

The Election Stakes in Mexico
The big question: Will the ruling Morena party get a large enough legislative majority to rewrite the constitution?
By
The Editorial Board
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May 19, 2024 4:57 pm ET

Mexicans vote to elect a new President on June 2, not that you’d know it from the lack of American media coverage of our southern neighbor. But the stakes are high, and the biggest question is whether the ruling Morena party of current President Andrés Manuel López Obrador will be able to move closer to his vision of a one-party state.

AMLO, as the President is known, is term limited and won’t be on the ballot. But his handpicked Morena successor, former Mexico City mayor Claudia Sheinbaum, is leading in the polls and pledges to continue his agenda of leftwing nationalist economics and eliminating constitutional checks and balances.

Opposition candidate Xóchitl Gálvez is a former National Action Party (PAN) senator. She’s running on an ideologically diverse coalition ticket that includes the leftwing Party of the Democratic Revolution, the centrist PRI and the center-right PAN. The parties have united in concern about a Sheinbaum presidency that could have AMLO pulling the political strings behind the throne.

Entrepreneurship, business competition, strong property rights and open markets are Gálvez campaign themes that set her apart from Ms. Sheinbaum and AMLO. Ms. Gálvez wants Mexico to live up to its free-trade commitments under the U.S.-Mexico-Canada Agreement and insists the U.S. do the same. On a visit to the Journal in February, she said that as president she would seek closer cooperation with the U.S. on economic and security matters. Ms. Gálvez’s Mexico would be an ally of the West.

This would break with Mr. López Obrador’s foreign policy. He’s been using migration as a bargaining chip with the Biden Administration to ward off U.S. action under USMCA to force Mexico to stop discriminating against foreign energy investors.

AMLO’s Mexico is an ally of Venezuela and Cuba and home to large numbers of Russian intelligence agents, according to U.S. Northern Command in 2022. He claims to follow a policy of not intervening in other countries, but three of his ambassadors have been declared persona non grata for meddling in support of the left in Bolivia, Peru and Ecuador.

Cartel violence and extortion have long scarred Mexico, but they have spiked under AMLO. Mexico isn’t a failed state, at least not yet, but narcos now control large swaths of the country. The AMLO government has used financial investigations and confidential tax records against political adversaries. All of this has undermined the rule of law.

One irony is that AMLO is popular because Mexico has benefited from freer trade and the market reforms of his predecessors. Investment has flowed in as manufacturers seek to set up plants to serve the huge North American market. The Mexican peso has strengthened to nearly 17 to the U.S. dollar from more than 20 in 2018. Real wages are up and job creation is robust.

But AMLO’s policies put this economic progress at risk. The government forecasts a fiscal deficit of 5.9% of GDP this year despite a growing economy. It hopes to cut the deficit in half by 2025 with spending cuts that could easily turn out to be unrealistic. Pro-growth policies aren’t part of the Morena agenda, which favors heavy government spending and national corporate monopolies.

Mr. López Obrador is hoping that Ms. Sheinbaum wins with a big enough margin to carry Morena to two-thirds majorities in both legislative chambers. That would clear the way to amend the constitution and reverse the 2014 opening of Mexico’s energy markets, erode the independence of the Supreme Court and electoral authorities, and eliminate independent regulators. Morena now has simple majorities in both chambers and AMLO has used them to gradually change the Supreme Court.

High voter turnout would help Ms. Gálvez, who is trailing in most polls by double digits. AMLO’s government is using its media allies to claim the election is already over. But sampling bias and the potential of a large hidden vote could still produce a surprise. The future of Mexican democracy may depend on maintaining a check on AMLO’s designs