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Mexico Business Intelligence Report (March 2005)
Counterfeiting in Mexico: Do We Have A Problem?
According to Aon Insurance, Mexico is considered a medium risk country for international terrorism, as there are reliable reports on the presence of Al Qaeda cells in Mexico, but only in transit or as temporary residents with the objective of entering the U.S. (Milenio, 2 May 2005). In a related story, four Iraqis traveling on false Dutch passports were detained upon their arrival on an airline flight from Mexico City to Mexicali. (Notimex, 30 March 2005). Comments:
- According to the Mexican Attorney Generals office, Mexico confiscated 108 million counterfeit products in 2004. According to the International Intellectual Property Alliance (IIPA), this would represent only 12 % of the Mexican market for counterfeit products!
- Despite the number of products seized, IIPA reports that only 22 counterfeit investigations resulted in fines or jail terms in 2004, and 37 in 2003. Comments:
- Despite substantive efforts by Mexican authorities to attack this problem, it remains an issue of continuing major concern to any patented or copyrighted product in Mexico.
- To date counterfeiters remain essentially immune to effective law enforcement actions.
- Accordingly companies need to be proactive in investigating IPR infringements and should be lobbying for more effective law enforcement.
Crime Trends in Mexico City:
The Good News: According to the City Police, crime rates in the Polanco area declined 24% in 2004 thanks to a concerted effort by uniformed and undercover police and the collaboration of neighborhood residents. (Reforma, 3 January 2005).
Crime Against Business Establishments:
According to a poll by the City´s Chamber of Commerce (Canaco-Servytur), crimes against commercial establishments have increased from an incidence rate of 6.9% in the last quarter of 2003 to 8.6% in the same period of 2004. These robberies and assaults totaled $195 million pesos in the last quarter of 2004. Although representing an increasing problem, this is an improvement over the first quarter of 1999 in which 19.9% of all establishments were crime victims. The principal victims in 2004 were commercial retailers (19.5%) and drug stores (12.5%). Organized gangs were the principal perpetrators of these crimes – 55.9%. (El Universal, 11 February 2005).
Kidnap Extortion:
According to the City Prosecutor, the city received 700 complaints in 2004 regarding kidnap extortion telephone calls, and the majority of calls originated from within a city jail!!! (Reforma 23 February 2005). Comments:
- To control the problem efforts are being made to restrict the access of jailbirds to telephones.
- Over the past few months we have received numerous requests for guidance on how to respond to these calls.
- Our guidance: Try to flush out how much the caller really knows about you and your family – you will likely find that they are bluffing with very vague information about the targeting they claim to have conducted. Then, assertively tell him to get lost and just hang up the phone – It will probably be the last time you will hear from them!!!!
Federal Secretariat of Public Safety Budget:
There will be an additional $500 million pesos distributed in 2005 among federal, state and city police as part of the government´s crime-fighting efforts. (El Universal, 15 February 2005)
Citizen Protest:
Another major public demonstration by Mexico City residents protesting the security problems in the city is scheduled for Sunday 26 June 2005. Comment: Last year´s massive demonstration was an unequivocal message to all politicians on the continuing need for better law enforcement and judicial reform.
The Bad News:
Despite the abundance of federal, state and city police, there has been no diminution in the average of 1.5 million crimes reported nationwide since 2000. According to the National System for Public Safety (SNSP), Mexico has 315 uniformed police for each 100,000 residents, versus 238 in the U.S. and 208 in Japan. And within Mexico, this figure varies from 872 in the Federal District to 232 in the State of Sinaloa. (Reforma 10 January 2005).
Deficiencies in Public Ministries:
According to the City´s Attorney General, 56% of arrest warrants requested by Public Ministries are thrown out by judges because of "deficiencies" in the arrest warrants. (Reforma, 1 November 2004).
Reforma Poll of February 2005:
- In the last three months have you been victim of a crime? 13% YES
- What crime were you a victim of? Mugging – 59%, Car theft – 15%, House burglary – 10%, Kidnap express – 2%.
- Did you file a police report? 28% YES – the highest figure over the past three years.
- Is the City Government of Lopez Obrador working hard to combat the crime problem? Agree – 56%, Disagree – 38%. This figure was the reverse a few years ago!
Comment: A light at the end of the tunnel? This poll does reflect a positive downward trend in the percentage of crime victims, and an increase in those denouncing the crimes. It is also noteworthy that the city mayor is finally being recognized for his concerted efforts to address this serious problem.
U.S. Travel Advisory Regarding Mexican Border Areas:
Comments:
- Thanks to the success of the Mexican FBI in arresting major drug cartel leaders, turf wars among the narcos are underway, resulting in the greater risk to innocent bystanders being caught in the wrong place and time.
- Therefore try to avoid traveling through the border area by land. If you must, do it quickly and do not overnight at a border area hotel.
Thanks for your attention, and please continue to send us your comments, experiences and critiques to improve and enrich subsequent issues to: jfrench@ipsaintl.com
Media Contact
Jillian Bernaiche
(602) 889 - 1626