DEFENSE SECRETARY HAGEL WANTS TO STRENGTHEN TIES WITH CANADA AND MEXICO

FROM:  THE DEFENSE DEPARTMENT 

Defense Secretary Chuck Hagel, left, greets Canadian Defense Minister Robert Nicholson before meeting in Mexico City, April 23, 2014. Hagel will attend a defense ministerial conference with Mexico, Canada and the United States before traveling to Guatemala. 

Hagel Looks to Strengthen Ties With Canada, Mexico.
By Cheryl Pellerin
American Forces Press Service

MEXICO CITY, April 24, 2014 – Defense Secretary Chuck Hagel met here last night with Canadian Defense Minister Rob Nicholson, ahead of today’s North American Defense Ministerial conference, which brings together the defense leaders from the United States, Canada and Mexico.

The conference is the second since 2012, when Canada hosted the first North American defense ministers meeting, and on the flight here, Hagel told reporters traveling with him that it’s important to keep the momentum going.
“Every time we meet,” he said, “we add muscle and sinew --substance -- to what we’re doing and what we could be doing.”

Hagel said the defense ministerial arose from President Barack Obama’s attendance in February in Toluca, Mexico, with Mexican President Pena Nieto and Canadian Prime Minister Stephen Harper at the North American Leaders Summit. There, the leaders discussed their vision for a prosperous and secure future for North American citizens and a shared commitment to work together to realize that vision. The leaders announced initiatives by the three countries to enhance competitiveness in the global economy, expand opportunities for North American citizens, and promote peace, security and development through multilateral action.
The secretary said his visit here would focus on the importance of the region and specific relationships within the region -- in particular, the trilateral relationship among the United States, Mexico and Canada.

“I don't think over the years we've done enough to reach out to our Latin American partners, partly because we suffer from a pretty good relationship,” Hagel said. “The places that get most of the attention around the world are the trouble spots.”
A senior defense official traveling with the secretary said the focus on the North American trilateral relationship “is the defense component of what we're trying to do in the [Western] Hemisphere -- drawing the United States, Mexico and Canada closer together as three partners.”

“We've always had very strong bilateral relationships with both countries, and it's not meant to supplant those … relationships, but we're trying to leverage the capabilities of all three countries,” the official added.

And because the three nations share threat perceptions and interests in so many places in the region and increasingly around the world, the defense official said, the focus on the trilateral partnership is an effort to build on those shared interests.
The official said the defense ministers would meet in several different kinds of meetings, large and small. Though the trilateral conference involves three countries, four ministers will attend the meetings, because in Mexico, two government ministries are directly responsible for national defense: the Mexican National Defense Secretariat, shortened as SEDENA in its Spanish acronym, and the Navy Secretariat, SEMAR.

Hagel’s counterparts in Mexico are Secretary of National Defense Gen. Salvador Zepeda Cienfuegos and Naval Secretary Adm. Vidal Francisco Soberon Sanz, and the secretary will meet with them for the first time today.

These military officers hold Cabinet rank and have regular and direct access to the Mexican president, who also is supreme commander of the armed forces.
Hagel has met with his Canadian counterpart several times, the defense official said, most recently in February during a NATO defense ministers meeting in Brussels.

When the two leaders met here today, Pentagon Press Secretary Navy Rear Adm. John Kirby said, they discussed a range of issues of mutual concern, including the situation in Ukraine, recent developments in the Asia-Pacific region, and common security challenges in the Western Hemisphere.

During the 30-minute meeting, Kirby added, both Hagel and Nicholson “expressed eagerness to discuss in more detail ways in which all three nations can work more closely together to deal with the threats posed by criminal networks, cyberattacks and natural disasters.”

Hagel also thanked Nicholson for his leadership and for Canada's strong contributions to the NATO alliance, the press secretary said, including the International Security Assistance Force mission in Afghanistan.

The senior defense official characterized Hagel’s visit here as a great opportunity to establish relationships with partners in the Western Hemisphere and to continue to work with Mexico on the bilateral relationship with the United States.
“The Mexicans are our regional partners, regional leaders, and increasingly, in the world they're becoming more of a global player,” the defense official said.
“The relatively new president of Mexico made quite a splash on the world scene, and he's got big challenges at home with the economy,” he added, “but he's an impressive leader, and President Obama had a good meeting with him a couple of months ago.”

As indicated by the potential sale of 18 Black Hawk helicopters by the United States to Mexico, as announced this week by the State Department, the Mexicans are interested in acquiring a range of U.S. capabilities, the official said.
The potential Black Hawk sale is a high-visibility request by Mexico, he added, “but we are talking to them about a range of capabilities that they are interested in, … like our assistance in their own security.”

“There are partnership things we can do and things we can do together,” he added, “but they also want to acquire their own capabilities, and we're interested in helping.”

When Hagel leaves Mexico, he’ll travel to Guatemala to meet with defense and government leaders.

PRESS GAGGLE EN ROUTE TO TOLUCA, MEXICO

FROM:  THE WHITE HOUSE 
Press Gaggle en route Toluca, Mexico
PRESS GAGGLE BY
PRESS SECRETARY JAY CARNEY
AND DEPUTY NATIONAL SECURITY ADVISOR
FOR STRATEGIC COMMUNICATIONS BEN RHODES

Aboard Air Force One
En Route Toluca, Mexico

9:50 A.M. EST

MR. CARNEY:  Good morning.  Thank you for joining us on our early start this morning.  We are making our way to Mexico for the North American Leaders Summit.  And I have with me today Deputy National Security Advisor Ben Rhodes, who can assist on questions you may have about national security and foreign affairs.

Let me just start by saying, as I think you know, later on this flight, the President will sign an executive order on streamlining the export-import process for America’s businesses. In his State of the Union address, President Obama set an ambitious agenda to make 2014 a “Year of Action,” using his pen and his phone to take steps to expand opportunity for America’s middle class, including helping small, American businesses compete in a global economy.

Today, as I said, aboard Air Force One, the President will sign a new executive order on streamlining the export-import process for America’s businesses, specifically the executive order that cuts processing and approval times from days to minutes for small businesses that export American-made goods and services by completing the International Trade Data System by December 2016.  

Today, businesses must submit information to dozens of government agencies, often on paper forms -- sometimes waiting on process for days to move goods across the border.  The ITDS will allow businesses to electronically transmit through a single window the data required by the U.S. government to import or export cargo.  This new electronic system will speed up the shipment of American-made goods overseas, eliminate often duplicative and burdensome paperwork, and make our government more efficient.

I have no other announcements to make, so if you have questions on domestic matters, why don't you fire away?  And then we'll turn it over to Ben.

Q    Ben, can you talk about -- (laughter.)  Sorry, Jay, I’ll get back to you.  Can you comment on the U.S. response to what’s going on in Ukraine, the violence there?  Have there been conversations with both President Putin and with Ukrainian leadership?

MR. RHODES:  Well, I think the scenes that we saw in Kyiv yesterday were completely outrageous and have no place in the 21st century.  The fact of the matter is we have made it very clear to the Ukrainian government that it is their responsibility to allow for peaceful protest.  We consistently oppose any use of violence by all sides, but the responsibility is on the government to pull back its riot police, to call a truce and to engage in a meaningful discussion with the opposition about the way forward.

Clearly, the people of Ukraine feel that their legitimate aspirations are not being met in the current political context, and it's incumbent on the Ukrainian government to reach out to the opposition and to find a way forward that can unify the country.

We have also made clear that Ukraine has a future that is a part of the Atlantic community, that Ukraine’s orientation towards Europe and the Transatlantic community is an important priority of U.S. foreign policy; that it is not a zero-sum game with Russia.  We understand that Ukraine is a neighbor of Russia, has historic ties to Russia, but that that need not preclude Ukraine from, again, continuing to pursue a European path as well.

So Vice President Biden communicated our position to President Yanukovych yesterday.  I know that Secretary Kerry, Victoria Nuland are working this with their counterparts, particularly as the EU prepares for a meeting.  The only additional thing I'd say is that we continue to watch events very closely, including who we believe is responsible for violence, and we've made clear that we would consider taking action against individuals who are responsible for acts of violence within Ukraine.  And we have a tool kit for doing that that includes sanctions.

Q    Can you say whether the United States would consider following the European Union’s lead if they impose sanctions against the Ukraine as an institution?

MR. RHODES:  Well, I think as a general matter we aim to be coordinated with the European Union and we have generally had a common position and spoken with a similar voice on issues related to Ukraine because we both have an interest in seeing an end to the violence and seeing the unity of Ukraine upheld and seeing Ukraine on a European orientation.  So I think we are in consultation with the European Union on the questions like which individuals should be held responsible for the violence, and in consideration of issues like imposing sanctions related to the ongoing violence.

Q    You guys have been talking about sanctions now for a while.  What would it actually take to pull the trigger?

MR. RHODES:  Well, I think the events that we saw yesterday are certainly heightening our focus on this issue and I think we'll be reviewing this, as we have been, on a near daily basis. And we also will be talking to the Europeans as they have their meeting of the EU foreign ministers, and we'll make a determination both on our own and, again, in consultation with the European Union about the next steps.

Q    Is that near-term thing, though?  I mean, would there be a determination like this within days, weeks?

MR. RHODES:  Well, obviously, the situation is very fluid, so I don’t want to put a timeline on it or get ahead of any particular announcement.  I will say that events like what we saw yesterday are clearly going to impact our decision-making.  On the other hand, if the government takes the appropriate steps of pulling back riot police, of respecting the right of peaceful protest, releasing prisoners and pursuing serious dialogue with the opposition about how to pursue a more unified government and way forward, that would obviously factor into our calculus as well.

But, clearly, the United States and the European Union believe that the events of yesterday were unacceptable.  And I think that’s why you see renewed diplomatic activity this week.

Q    To what extent does Russia have a role in either reducing the violence or creating additional disturbances?

MR. RHODES:  Well, I think the message that we delivered to the Russians is that, again, we are not in some competition for the future of Ukraine.  Frankly, our interest is that the people of Ukraine are able to determine their future, not any external actor.  Clearly, we believe that a significant number of Ukrainians believe very deeply in the importance of Ukraine pursuing a European orientation, even as they maintain relations with Russia as a neighbor.

And so the role we would like to see Russia play is of constructive support for reducing these tensions and allowing the Ukrainian people to determine their own future, and that we don’t think that there should be, again, a situation where Russia is viewing this as some competition with the European Union or the United States; rather, we all have an interest in a Ukraine that is stable.  And, clearly, the status quo is not a recipe for stability, because too many Ukrainians are feeling like their own aspirations are not being met in this government and in this plan that turns away from Europe.  So that’s the message we delivered to the Ukrainian government and the Russian government as well.

Q    So far, Vice President Biden has been your main interlocutor on this.  Is there a point at which the President gets to follow up directly?

MR. RHODES:  Yes, I would expect the President -- he’s been involved in the sense that he’s followed the situation very closely.  He’s discussed it with counterparts in the past; with President Hollande this was a subject of discussion.  And I’d expect the President to be involved in the days to come as well.

Again, he has pressed us to make sure we’re doing everything we can to try to reduce tensions and to try to stabilize the situation and support the democratic aspirations of the Ukrainian people for a more unified government and a government that has the ability to pursue a European orientation as well as good relations with Russia.

So I’d expect him to be involved.  I’d expect it to come up today, frankly.  It’s a pressing global issue and I’m sure he’ll be discussing this with President Peña Nieto and Prime Minister Harper.

Q    Is he watching any of the television footage from Kyiv or anything?

MR. RHODES:  I don’t know if he’s -- we’d have to ask him that.  I’m not aware that he’s seen particular footage, but he has been getting very regular updates on the situation in Ukraine.

Q    Do you expect the President to say anything publicly today or for it to be more in the meetings with the other leaders?

MR. RHODES:  I mean, obviously, it’s not the focus of these meetings.  The focus of these meetings is our North American partnership, trade and commerce, and increasing economic competitiveness in the North American region, security issues.

However, it being a significant global issue, I’d anticipate that he will have some public comment on it, as well as comment with the other leaders.

Q    Jay, can you talk about the executive order a little bit?  This system has been in the works for a while.  Why was an executive order necessary?

MR. CARNEY:  Because the President has the authority through an executive order to streamline the process on behalf of American businesses, in particular small businesses.  And, as you know, while he has taken an approach since he took office that includes not just acting legislatively, but using his executive authority where he can on behalf of the American people, he has tasked his team with finding opportunities for him to use that authority in a way that benefits the American economy and the American people.  This is an example of that.

Q    Jay, you said numerous times in recent days that it's no surprise that Democrats as well as Republicans have their problems with trade-expanding agreements.  But the enthusiasm among Democrats seems particularly slight this time around compared to last -- past rounds of big trade deals.  What can the President say to reassure Peña Nieto and Harper that there’s any hope whatsoever for accomplishing trade deals this year?

MR. CARNEY:  Well, as you know, Mark, the President has made clear that expanding American exports and trade, especially in the Pacific region, is a priority.  And the reason for that is that there’s enormous growth and opportunity in that region, and absent an agreement that allows for expansion we would cede that territory to our competitors, which would be detrimental to our economy, to our middle class.  He is pursuing an agreement, the TPP, that explicitly protects American workers and the environment, and that he believes would be highly beneficial to our economy and the middle class.  So it’s a conversation he has and others have with lawmakers of both parties.

I think it’s worth noting that this is an issue around which there is not a uniform point of view in either party.  And the President has long understood that.  And I think it is worth noting that this is nothing new, especially for those of us who have been around Washington for more than 20 years.

But that doesn’t mean that there’s not a reason to make it a priority.  The President believes it's a priority and he’ll continue to have those conversations.  And I’m sure he'll make his views known in his conversations with the other two leaders today.

MR. RHODES:  One thing to add is that this has been an ongoing negotiation for several years, so there’s been a very sustained effort over a period of years, precisely because this represents an agreement that would encompass 40 percent of the global economy and have huge opportunity for the United States and the countries involved.  That’s part of the reason why Canada and Mexico came into this process.

What I’d say also, though, is that, first of all, we see this as an opportunity to introduce elevated standards on issues like labor and the environment that were not in NAFTA.  So, in many respects, it’s an opportunity to, again, elevate the standards that were absent from the NAFTA agreement so that we are dealing with issues like labor and environmental standards that are important to 21st century trade.

The other thing I’d say, though, is that as you get further along in a trade negotiation, there are sensitive issues in every country.  Trade is not simply an issue that has a significant range of opinions in the United States.  Every country in a negotiation always has constituencies that have a divergence of views on issues in a trade agreement.

So I think these leaders, like all leaders involved in the agreement, understand and appreciate that.  As you continue towards the end of a negotiation, you get into sensitive issues and you will have an effort undertaken to build support for an agreement.  And so I think the leaders know exactly where things are in the negotiation and appreciate that.

Q    Can you explain the decision to make this such a short trip?  Any concern at all that this could be viewed as a bit of a snub by Mexico?

MR. RHODES:  No, I don’t think so.  This is our second visit to Mexico since President Peña Nieto became President.  We had a full bilateral summit in Mexico City and had two days of good meetings and a dinner with the President the last time we were here.  So this is not the first time the President has been to Mexico since President Peña Nieto took office.

I think if you look at the history of the North American Leaders Summit, it’s generally a one-day meeting, so this is consistent with summits that have been held in the past, including summits in the United States.

Q    Jay, on Keystone, Harper told reporters yesterday his message to our President will be the same as he said publicly.  What will President Obama’s message be back to Harper on that discussion today?

MR. CARNEY:  He will say the same thing that he and I and others have said publicly, which is this a process that is run out of the State Department in keeping with past practice of administrations of both parties.  We have reached a stage in that process with the release of the environmental impact statement.  We’re now in a phase where there is input from agencies -- others agencies and from the public, and that that process needs to be insulated from politics -- that’s the President’s view -- and that he will explain that to both leaders.  I’m sure they’re fully aware of that dynamic.

Q    Do you think you can say the timeline of a likely decision, though, without commenting on the substance of it?

MR. CARNEY:  The timeline is as I just relayed to you and we’ve discussed publicly, and it’s something that is institutionalized by the State Department.  And we’re now in a phase of input from agencies and the public, and the process will move forward.  But we’re not going to alter the process; we’re going to let it proceed the way it should, because these are issues, as the President said, that have to be determined based on what is viewed as in the best national interest of the United States.

Q    Immigration is a big issue in Mexico.  In his bilat with President Peña Nieto, what will be the President’s assessment of the best chances on the timing of passage of immigration reform?

MR. CARNEY:  The President continues to believe that 2014 presents the best opportunity we’ve had to see comprehensive immigration reform become law.  We obviously have a ways to go, but the Senate has passed a bill with bipartisan support and a large majority.  The House, through its leadership, has taken steps by putting forth standards and principles.  That’s a new development this year that represents progress and demonstrates that Republican leaders recognize the value of immigration reform and the benefit that it would provide to our economy, to our border security, to our middle class, and to innovation for our businesses.

So I’m sure the President will update both leaders on where that stands, and his hope and belief that the question around comprehensive immigration reform is not if but when, and we hope it’s this year.

Q    Are you guys having any kind of communiqué or deliverable-specific tangible things you’re planning to announce as a result of today?  Or is it mainly a matter of catching up and sort of updating each other on where things stand?

MR. RHODES:  I’d expect there to be a leaders’ statement at the conclusion of the summit that addresses the agenda that we will have worked on.  And again, I think if you look at the North American Leaders Summit, it’s been a venue for us to do two things:  in the near term, to work through specific issues related to trade and commerce.  That gets at cross-border trade, customs issues, supporting the free flow of commerce, but also secure borders, efforts to promote security in North America more broadly.  We have energy cooperation and cooperation on climate change.  So there’s a range of near-term steps that they’ll be discussing today and I think we’ll be able to address at the conclusion of the summit.

At the same time, we’re also looking to what is our vision for North America more broadly going forward.  It’s a huge asset of the United States, frankly, to have such close relationships with our two neighbors, two significant trading partners.  And we cooperate on issues that run the gamut from trade to the environment, to energy and climate change, to security.  And so what is the vision of a stable, secure, prosperous North America looking ahead, I think they’ll also be addressing that as well.

Q    Obviously, going at a time when we’re marking the 20th anniversary of NAFTA, a lot of debate -- good, bad.  What is the President’s assessment of NAFTA?  Even though he’s had some issues with it, was it overall a success?  Was it something that he wishes didn’t happen?  What is his view of that?

MR. RHODES:  Well, I think, on the one hand, NAFTA supports a huge amount of trade that supports a significant number of U.S. jobs.  If you look at the trade between the United States and Mexico and Canada, millions of U.S. jobs are associated with that.  I think it has led to a more prosperous and competitive North America as a whole within the global economy.  So there has been progress that is rooted in the trade relationship between the United States, Canada and Mexico.

At the same time, there are issues that were not addressed in NAFTA, like the labor and environmental standards that the President has spoken about in the past and that, frankly, are a part of the TPP agreement.

So we see NAFTA as providing, clearly, a foundation for trade in North America that can be improved and enhanced by elevating the standards of trade to include the issues that are of increasing attention to us.  And if you look at TPP, that’s labor and the environment, but also issues related to intellectual property and state-owned enterprises, access to the Pacific markets.

So what you really want, Peter, is a dynamic where the North American competitiveness allows us to be drivers in terms of getting into the fastest emerging markets in the world, which are in this Asia Pacific region.  And so we’re in a good position to do that given our own trade relationship, but we also can, frankly, go back and elevate some of the issues that were not a part of the original agreement through the TPP.

Q    Ben, last year when we were in Mexico, one of the issues that hung over at those meetings was the level of cooperation taking place between the new Peña Nieto administration and the U.S. over security.  What’s the status of that?  Has the Peña Nieto administration made inroads on the security issue to the satisfaction of the U.S.?  What’s the U.S. view of security?

MR. RHODES:  We have maintained our security cooperation with Mexico.  We are very pleased with the level of cooperation that we have with the Mexican government in addressing the narcotrafficking issue.  President Peña Nieto is focused on reducing the levels of violence, broadly.  We continue to provide whatever support the Mexican government asks us for and requires as they deal with huge border security -- huge issues of violence around the border, and because of the narcotrafficking issue.  At the same time, we’ve continued to make clear our own responsibilities to crack down, for instance, on the flow of guns southward, which has been an element of the violence there.

So the cooperation has continued.  It’s certainly been good from our perspective, and I’m sure that they’ll address it in their bilateral meeting, as well as in the trilat.

MR. CARNEY:  Can I just say, since nobody asked -- hey, Christi, did you have a question?

Q    No.

MR. CARNEY:  Well, so a couple of things have happened this week related to the President’s primary focus on growing the economy and expanding opportunity that are rather remarkable.  First of all, you see Republicans lining up en masse against raising the minimum wage, which is a remarkable development if you think about it.  You have Americans across the country working full-time and yet being paid a wage that keeps them in poverty.  That’s not something that should happen in this country.  And the American people, including Republicans’ constituents, overwhelmingly support lifting the minimum wage.  As the CBO report demonstrated, that would lift something on the order of 900,000 Americans out of poverty and raise the wages for 16 million-plus Americans across the country.  And as Jason Furman said, the substantial consensus among economists is that it would not have a negative impact on jobs.

The second thing that happened was the five-year anniversary of the Recovery Act.  And as a point of personal privilege as somebody who was covering these matters back in the early ‘90s, I find it remarkable that Speaker Boehner attacks the President for the Recovery Act.  I remember when Speaker Boehner powerfully argued against President Clinton’s economic agenda, said that it would lead to stagnation and job loss.  He could not have been more wrong then.  We saw record job creation.  Speaker Boehner was wrong.

Speaker Boehner argued powerfully against the Recovery Act and President Obama’s economic agenda.  In the wake of the worst recession since the Great Depression, we've seen the creation of 8.5 million private sector jobs.  Speaker Boehner could not have been more wrong.  In between, Speaker Boehner supported economic policies that helped to precipitate the worst financial crisis and economic crisis in our lifetimes and, by the way, led to record deficits, which were handed over to President Obama when he took office.

It's very important to have the long view here.  And what we know about the Recovery Act is that it delivered tax cuts, it delivered investments in clean energy, it delivered an infusion in an economy that was teetering on the brink of collapse.  And the alternative at the time, as you remember if you saw the headlines, was the potential for depression, some predicting 20 to 25 percent unemployment.  Republicans refused to support a plan that saved the country from that kind of disaster and set us on the course towards job creation and economic growth.

This is not a project that's anywhere near done.  That's why the President remains focused principally on growing the economy, helping the middle class.  And certainly raising the minimum wage is a way to do that.

Q    Jay, since you brought it up, on the CBO, it’s been remarkable cherry-picking of the results of the conclusions of that report by both sides.  How can it be that those economists can be right on one issue from your side, the raising people out of poverty, but so wrong on the job costs of that report?  And is there a danger in going after what is usually considered a fairly neutral arbiter of economic issues and budget issues?

MR. CARNEY:  Jim, we're not going after anyone.  As Jason Furman, the President’s chief economist, said yesterday, we respectfully disagree with that particular conclusion and point to the deep and wide body of academic research on this that supports our view.  But it’s not about -- obviously we have enormous respect for the CBO, and I think that’s reflected in the fact that we point to some of the other conclusions in that report.

It’s just demonstrated by history and, again, by the work of many experts in the field that there’s likely to have no negative impact in terms of job creation by raising the minimum wage, which spurs economic activity, lifts people out of poverty, and raises the wages for Americans across the country, including middle-class Americans.  But again, that’s a respectful disagreement on a particular finding in which the experts in the field have expressed a different view.

Q    But you must have felt that that report was damaging to your efforts to get support for raising the minimum wage.

MR. CARNEY:  Look, I think that Republicans who, against the overwhelming opinion of the American people, rally around that particular item in the report to suggest that we can’t give Americans a raise risk more damage to themselves and politically, as well as to the middle class economically, and to Americans economically.

So I don’t think we view it that way.  Support for raising the minimum wage is broad and deep.  We’ve seen states take action, and we’re going to continue to press the Congress to take action.

Thank you.

END

U.S., CANADA AND MEXICO DISCUSS ANTITRUST ENFORCEMENT

FROM:  JUSTICE DEPARTMENT 
Thursday, February 13, 2014
U.S., Canada and Mexico Antitrust Officials Participate in Trilateral Meeting in Washington to Discuss Antitrust Enforcement

The heads of the antitrust agencies of the United States, Canada and Mexico – Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division, Chairwoman Edith Ramirez of the Federal Trade Commission, Canadian Commissioner of Competition John Pecman and President Alejandra Palacios Prieto of the Mexican Federal Competition Commission – met today in Washington, D.C., to discuss their mutual efforts to ensure continued effective antitrust enforcement cooperation in our increasingly interconnected markets.

The discussions covered a wide range of topics, including recent enforcement developments, cooperation and mutual support, and priority setting and efficiency in resource constrained environments.

“Working with our antitrust colleagues across both United States borders to ensure effective antitrust enforcement is good for businesses and consumers,” said Assistant Attorney General Baer.  “The department values its close law enforcement relationships with Canada and Mexico, and I look forward to our continued efforts to work together to combat anticompetitive activity.”

The meetings build on the foundations laid by the 1995 antitrust cooperation agreement between the United States and Canada, the 1999 agreement between the United States and Mexico and the 2001 agreement between Canada and Mexico.  The agreements commit the antitrust agencies to cooperate and coordinate with each other to make their antitrust policies and enforcement as consistent and effective as possible.

The three nations also are parties to the North American Free Trade Agreement, which includes a competition chapter that provides for cooperation among them in antitrust investigations.

SECRETARY KERRY TOUTS LOWERING U.S. TRADE BARRIERS

FROM:  U.S. STATE DEPARTMENT 
Remarks at the Launch of the 100,000 Strong in the Americas Partnership
Remarks
John Kerry
Secretary of State
Loy Henderson Auditorium
Washington, DC
January 17, 2014

SECRETARY KERRY: Well, Ben, thank you very, very much. Thanks for your incredible collaboration and leadership on all of this. Mr. Vice President, thank you for being here with us today. And Kathleen Kennedy Townsend, old pal, thank you for being here and being part of this. And Roberta Jacobson, I just – her ears should be burning because I just swore in a new class of civil servants here, and I just called her “the best of the best” and a whole bunch of things, and so – look at her, she’s – (laughter). But she is doing a spectacular job. And Evan Ryan, who’s not up here, shares efforts on this, and we have a great team. And it’s really exciting to be able to be engaged in this kind of an initiative.

I know Roberta from her time as an OAS fellow in Argentina. Really found her worldview shaped through that experience. And so she comes to this with a very personal kind of early commitment that really helps us to translate this into the program that it’s becoming and going to become. And Kathleen Kennedy Townsend, likewise. I’ve watched her for years and years and years as she and I –

MS. TOWNSEND: A hundred years. (Laughter.)

SECRETARY KERRY: Well, you know. You and I – I actually knew Kathleen when she was – that puts me in a different category, and I think Senator Biden, too. So whatever happens, I’m – (laughter) – I’m way the hell ahead of you, so relax. (Laughter.)

I’m really pleased to see that Steve Vetter is here. He leads the Partners of the Americas, and that’s created opportunities across the hemisphere for more than five decades, no small accomplishment. And I’m also happy that Steve Ferst is here from NAFSA, another organization which has done so much to promote these kinds of global exchanges.

And most of all, I want to thank the fellow to my left, the Vice President of the United States, for being with us because his presence here really underscores the Administration’s priority of creating shared prosperity across the hemisphere. On official visits to Panama, Colombia, Mexico, Chile, Brazil, Trinidad and Tobago, and throughout his five years in the White House and well before that in the 30 years or so that he was on the Foreign Relations Committee, the Vice President has helped to make this priority a reality. And because of his pragmatic and personal commitment to this kind of diplomacy, connecting young people to the future, to opportunity – which is really getting people in touch with our values and their interests, and that marriage is critical. And the Vice President is a key asset for the President of the United States in helping us to engage and reach out in this kind of a program.

He and I both believe – as does President Obama. I think if there’s any topic that the President has put sort of first among equals, if you will, it’s education. And I – we share the belief, all of us here on this podium, education is the great equalizer of the 21st century, because of the dramatic changes that have taken place in the workplace and the challenges of globalization. And the success of many of the leaders in this room is, frankly, a testament to that reality. The Costa Rican ambassador, Muni Figueres, received her BA at City College in New York. Nester Mendez, the ambassador from Belize, did graduate work right down the street at George Washington. And Jose Antonio Meade, who I met with this morning in a trilateral with our friends from Canada, he is Mexico’s foreign secretary and he received his PhD at my alma mater, Yale University.

You have no idea how many people you meet – when I go around the world representing the country and meet a foreign minister, environment minister, finance minister, prime minister, president – who with pride talk about their time in the United States at one college or another or graduate school and what it has meant to shaping their views.

All of the people I just mentioned are distinguished diplomats who come from three different nations, and they pursued very different programs of study. But for each one of them, studying abroad in the United States helped them succeed in a much more internationalized world. As President Obama said last year in Mexico, “When we study together, we learn together, we work together, and we prosper together.” And that’s why the President launched this initiative of 100,000 Strong. It’s an ambitious goal: double the two-way traffic of young people studying in our respective universities.

So I’m proud to announce today that the State Department, with our partners in the private sector, have already raised – and we’ve just begun – have already raised a total of 3.65 million to promote study abroad and cross-cultural learning across the Americas. And as I said, that’s the beginning. We’re going to continue this effort.

These investments are going to help universities develop greater capacity to support study abroad, and they will challenge and reward institutions to find innovative ways to spur greater exchanges and to encourage schools and students who haven’t traditionally participated in this to come to see its value.

I am genuinely proud that the State Department is doing this, and I want to thank Santander Bank and ExxonMobil for their contribution as members of the 100,000 Strong in the Americas Founding Circle. I want to applaud Coca-Cola, Freeport McMoRan, and the Ford Foundation for being the initiative’s first contributing partners.

It’s also fitting that we host this event on that same day that Foreign Secretary Meade and I celebrated the 20th anniversary of NAFTA. And through two decades, the vast majority of North Americans have seen incredible benefits as we’ve lowered the barriers to trade, brought talent together and investments across the lines. We now trade about $1.2 trillion a year, compared to $77 billion with Brazil a year, and about $59 billion with India. So we massively, as North America, dwarf, and we haven’t paid enough attention, frankly, to building the longer-term future by creating this kind of relationship.

So I can tell you this: No matter where we’re from, every one of us shares the same basic aspiration – opportunity, security. And we all know that that better future is within reach if you have the chance to reach for the brass ring which comes from education. We are living in a world where countless countries, including this hemisphere, have vast populations under the age of 30 – 65 percent in some, 60 percent; 50 percent under the age of 21, 40 percent under the age of 18. And if those young people who are able to be wired and see what the rest of the world is getting and doing don’t have an opportunity to reach out and touch that, we’re all going to inherit the consequences of our lack of focus and inattention.

So it’s my honor now to introduce someone who has done so much in promoting these partnerships and this prosperity across our two continents, the Vice President of the United States, Joe Biden. (Applause.)

LIBRARY OF CONGRESS CELEBRATES MEXICAN AND HISPANIC HERITAGE

FROM:  U.S. LIBRARY OF CONGRESS
A Celebration of Mexico: A Champion of Reform
December 4, 2013 by Erin Allen

The Library of Congress has the largest collection of Hispanic materials in the world, including rare items of Mexican origin. Next Thursday and Friday, the institution is hosting a special “Celebration of Mexico” to take a look at some of these items and to also honor Hispanic and Mexican heritage. As part of the celebration, several of the institution’s curators have highlighted a few of the Library’s most treasured artifacts in a series of brief webcasts.

Bartolomé de Las Casas is known throughout history for his stand on the rights of native Americans. The Library holds several of his writings in his collections, including this book to inform the Spanish Crown that officials and landowners in the New World were behaving cruelly toward their indigenous subjects and to plead for redress. His book had an enormous impact, prompting Emperor Charles V to recognize the humanity of indigenous peoples and to issue the New Laws of the Indies in 1542, ending the absolute power of individual Spaniards.

Library of Congress Hispanic Division specialist Barbara Tenenbaum shares insights into the history of the early Americas and Dominican priest and social reformer Bartolomé de las Casas.

LIVING LEGEND AWARD HONORS MEXICAN ANTHROPOLOGIST MIGUEL LEON-PORTILLA

FROM:  U.S. LIBRARY OF CONGRESS 
A Celebration of Mexico: Honoring a “Living Legend”
November 21, 2013 by Erin Allen

Mexican anthropologist and historian Miguel León-Portilla is the newest recipient of the Library of Congress Living Legend Award for his work in studying the Náhuatl language and literature – the ancient, still-spoken tongue of the Aztecs. The award will be conferred upon León-Portill at the Library’s “Celebration of Mexico”on Dec. 12.

The Living Legend Award honors those who have made significant contributions to America’s diverse cultural, scientific and social heritage. León-Portilla is the world’s foremost authority on Náhuatl philology and philosophy. He has spearheaded an entire scholarly discipline to evaluate and understand Náhuatl literature and thought, extending from pre-Columbian times to the 1.5 million speakers of Náhuatl today. The language of the Aztecs, Náhuatl has been spoken in Central Mexico since at least the 7th century AD.

CHIEF OF SECURITY FOR DRUG TRAFFICKER TARGETED AS SPECIALLY DESIGNATED NARCOTICS TRAFFICKER

FROM:  U.S. TREASURY DEPARTMENT
Action Targets Cartel Enforcer and Security Firm Linked to the Beltran Leyva Organization


WASHINGTON – The U.S. Department of the Treasury today designated Arnoldo Villa Sanchez as a specially designated narcotics trafficker (SDNT) pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act).  Arnoldo Villa Sanchez, a.k.a. Erick Rene Calderon Sanchez, is the chief of security for Hector Beltran Leyva, the leader of the Beltran Leyva drug trafficking organization.  Villa Sanchez has carried out numerous acts of violence on behalf of his cartel bosses.  In addition to the action against Villa Sanchez, the Treasury Department also designated Sistemas Elite De Seguridad Privada, S.A. de C.V., a private security firm, for being owned and controlled by Arnoldo Villa Sanchez.  Treasury also designated Miguel Loza Hernandez for his links to Arnoldo Villa Sanchez and Sistemas Elite De Seguridad Privada, S.A. de C.V.  Today's action, pursuant to the Kingpin Act, generally prohibits U.S. persons from conducting financial or commercial transactions with these designees, and also freezes any assets they may have under U.S. jurisdiction.

"We have been closely monitoring the resurgence of the Beltran Leyva Organization as it battles for a larger share of the narcotics trade in Mexico.  We are determined to target all sides in this cartel war and will continue to use our authorities to disrupt these violent organizations,” said Treasury’s Director of the Office of Foreign Assets Control (OFAC) Adam J. Szubin.

Arnoldo Villa Sanchez is a top associate of Hector Beltran Leyva and serves as his security chief.  OFAC designated Hector Beltran Leyva as a SDNT in December 2009.  Arnoldo Villa Sanchez is the largest shareholder of Sistemas Elite De Seguridad Privada, S.A. de C.V., a Guadalajara, Mexico based security services firm with more than 150 employees.  Sistemas Elite De Seguridad Privada, S.A. de C.V. specializes in personnel protection and alarm services. Miguel Loza Hernandez manages, and is a shareholder of, Sistemas Elite De Seguridad Privada, S.A. de C.V.  Since 2008, Beltran Leyva Organization has waged a bloody war against rival organizations led by Joaquín "Chapo” Guzman Loera and the Sinaloa Cartel.  In the last two years, the Beltran Leyva Organization has re-established itself and begun to expand its influence in parts of Sinaloa.

The President identified the Beltran Leyva Organization and Marcos Arturo Beltran Leyva as significant foreign narcotics traffickers pursuant to the Kingpin Act in May 2008.  Hector Beltran Leyva has been indicted on drug trafficking charges by federal grand juries in the District of Columbia (2004) and the Eastern District of New York (2009).  The U.S. Department of State is offering up to a five million dollar reward for any information that leads to the capture of Hector Beltran Leyva.  In addition, Mexican authorities are offering up to 30,000,000 Mexican Pesos (two million dollars) for information leading to his arrest.  On January 20, 2008, Mexican authorities arrested Alfredo Beltran Leyva, the former leader of the Beltran Leyva Organization, on organized crime, drug trafficking, and unauthorized use of military grade weapons charges.  In December 2009, the Mexican military killed Marcus Arturo Beltran Leyva.  Subsequently, Hector Beltran Leyva assumed the role as leader of the Beltran Leyva organization.

Since June 2000, the President has identified 103 drug kingpins, and OFAC has designated more than 1,300 businesses and individuals, pursuant to the Kingpin Act. Penalties for violations of the Kingpin Act range from civil penalties of up to $1.075 million per violation, to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines up to $5 million.  Criminal fines for corporations may reach $10 million.  Other individuals could face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.

JUSTICE SAYS ALLEGED LEADER OF INTERNATIONAL NARCOTICS TRAFFICKING ORGANIZATION EXTRADITED TO U.S.

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, November 13, 2013

Alleged Leader of Mexican Narcotics Trafficking Organization Extradited to U.S.
Organization Allegedly Transported Multi-Ton Quantities of Cocaine from Central America to Mexico for Mexican Cartels to Import into the U.S.

The alleged leader of a Mexican narcotics trafficking organization responsible for trafficking multi-ton quantities of cocaine, Juan Juarez Orosco, aka “El Abuelo,” was extradited to the United States from Panama on Nov. 8, 2013, and arraigned on Nov. 10, 2013, before U.S. Magistrate Judge Lois Bloom in the Eastern District of New York.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Special Agent in Charge James T. Hayes Jr. of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) and Special Agent in Charge Brian R. Crowell of the Drug Enforcement Administration’s (DEA) New York Division made the announcement.

According to court documents, from the early 1990s until his arrest by Panamanian law enforcement in March 2012, Juarez allegedly led a large-scale maritime and land transportation operation that was responsible for trafficking multi-ton quantities of cocaine from Central America via ship to the coast of Mexico.  Once the cocaine arrived in Mexico, Juarez and his co-conspirators would transport the cocaine from the coast to Mexico City, where it was then destined for the United States.  Throughout the 2000s, Juarez allegedly worked with major narcotics traffickers based in Colombia and Mexico, including the Norte Valle Cartel, the Beltran-Leyva Cartel and the Sinaloa Cartel.  Through the mid-2000s, Juarez’s organization allegedly transported at least 35,000 kilograms of cocaine for the Beltran-Leyva organization alone.  At the height of its activity, Juarez’s organization allegedly transported approximately eight tons a month in conjunction with the Sinaloa Cartel.

“As alleged in the indictment, Juarez’s trafficking organization was responsible for the importation of massive quantities of cocaine, across oceans and continents, into the United States,” said Acting Assistant Attorney General Raman.  “Juarez’s arrest and extradition are a testament to the tenacity of law enforcement officers across the world, and show what we can accomplish when we work together with our partners around the globe to capture major drug traffickers and bring them to justice.”

“There is no escape from the reach of the law, no matter where drug kingpins operate their poisonous trade,” said U.S. Attorney Lynch.  “Juan Juarez Orosco may have operated an international drug trafficking network that stretched across the Western Hemisphere, but today he faces justice in a courtroom in Brooklyn.  Thanks to our law enforcement partners in Panama, today’s extradition also shows that there is no safe haven for drug traffickers on the run.”

Juarez was indicted on March 15, 2012, and charged with international narcotics importation and distribution conspiracy.  If convicted, the defendant faces a mandatory minimum sentence of 10 years and a maximum penalty of life in prison.

The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

This case is being investigated by ICE HIS and DEA.  This case is being prosecuted by Trial Attorney Adrian Rosales of the Criminal Division’s Narcotic and Dangerous Drugs Section and Assistant U.S. Attorneys Gina M. Parlovecchio and Tiana Demas of the Eastern District of New York, with the assistance of the Criminal Division’s Office of International Affairs.

EXPORT-IMPORT BANK APPROVES $1.5 BILLION FINANCING FOR ENERGY EQUIPMENT TO MEXICO'S PEMEX

FROM:  U.S. EXPORT-IMPORT BANK 
Ex-Im Bank Approves $1.5 Billion to Finance Energy Equipment and Services to Mexico 
Financing Supports 6,800 U.S. Jobs

Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) has authorized $1.5 billion of export financing in a pair of transactions to support the export of U.S. goods and services to Petroleos Mexicanos (Pemex), Mexico's national oil and gas company.

For the second time, Pemex will issue Ex-Im Bank-guaranteed bonds in the capital markets to fund the transactions. In the event the funding cost is prohibitive, Pemex may exercise an option to seek Ex-Im Bank direct loans priced at Commercial Interest Reference Rates.

Ex-Im Bank’s financing will support approximately 6,800 U.S. jobs spread across about 10 states, according to bank estimates derived from Departments of Commerce and Labor data and methodology. The procurement includes oil and gas field drilling services, drilling platforms, equipment rentals, pumps, well-completion services, associated spare parts and chemicals, geophysical services and safety equipment.

“These two transactions will increase the flow of American exports to one of our neighbors and in the process support large- and small-business jobs across America,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “It is clear that the ‘Made in America’ brand is valued now more than ever.”

Detcon Inc., a small-business that will benefit from the transaction, designs and manufactures a wide range of industrial grade fixed gas detectors, control systems, pipeline analyzers, and wireless technology. The company, which is headquartered in The Woodlands, Texas, employs about 90 people.

“Detcon is proud of its association with Pemex,” said Adam Markin, Detcon’s CEO. “Ex-Im Bank’s support of Pemex in this transaction is a large help to smaller U.S.-based companies like Detcon and to their jobs.”

Since 1998, Ex-Im Bank has approved approximately $13.5 billion in financing to support Pemex’s activities.

'L.A. GANGSTER HUNTED DOWN BY U.S. MARSHALS'

FROM:  U.S. MARSHALS SERVICE 
L.A. Gangster Wanted for Murder Hunted Down by U.S. Marshals and Arrested in Mexico

Tucson, AZ – Today, Thomas Ruben Velarde, age 26, of California, was returned back to the United States and into the hands of awaiting Deputy U.S. Marshals and detectives with the Los Angeles County Sheriff’s Department. Velarde was deported by Mexican law enforcement officials through the Nogales Port of Entry in Nogales, Arizona. Velarde, aka “Poison” and “Serio,” is a known street gang member and has been wanted for homicide with a bond of nine million dollars, since January 2009, for his alleged participation in a homicide that killed one man and wounded two others.

On January 11, 2009, Velarde and Patricio Michel, age 26, confronted three male subjects in a parking lot outside a Mexican food restaurant in Compton, California. An altercation between the subjects ensued and Velarde allegedly shot at the three males, killing a 28 year old male and wounding the other two.

Within close proximity of the incident two armed security guards hired to work at a nearby party heard the gun shots and responded. While approaching the scene, the security guards observed a vehicle accelerating in their direction and in self-defense fired upon the vehicle. The vehicle fled the area and a search for Velarde and Michel began. Law enforcement officers located and arrested Michel later that morning at his residence in Downey, California. Detectives conducting the homicide investigation learned that Velarde had fled to the Republic of Mexico, where his whereabouts remained unknown.

On January 26, 2009, Velarde and Michel were both charged with one count of murder and two counts of attempted murder. Velarde maintained his fugitive status for over four years and was featured on the television show America’s Most Wanted, meanwhile, Michel continued his journey through the justice system. On July 14, 2010, Michel pled guilty to manslaughter with the use of a firearm, and was
sentenced to 15 years in a California state prison. Velarde continued to elude U.S. law enforcement officials until recent information on his location was obtained. Deputies with the U.S. Marshals led Violent Offender Taskforce - Mexican Investigative Liaison unit were contacted and were requested to assist with newly discovered information. Deputies immediately began to assist the Mexican authorities with their investigation of U.S. fugitive, Velarde. Authorities in Mexico located Velarde and arrested him without incident in Huatabampo, Sonora Mexico. Velarde was taken into custody by Deputy U.S. Marshals and was transported to the Pima County Detention Center where he will await his extradition back to Los Angeles, California.

United States Marshal David Gonzales stated, “Tracking down and arresting individuals that commit these violent acts in our communities is a priority of the United States Marshals Service. It is my hope this arrest can bring some sense of closure to the victim’s family.” He added, “We will continue to work with our law enforcement partners in Mexico and throughout the United States to track down dangerous individuals.”

The federal, state, and local law enforcement agencies that comprise the Arizona WANTED Violent Offender Taskforce (Tucson Metro Division) include: U.S. Marshals Service; Immigration and Customs Enforcement; Arizona Department of Public Safety; Pima County Adult Probation Office; Arizona Department of Corrections; Tucson Police Department; U.S. Border Patrol; Pima County Sheriff’s Department; Bureau of Alcohol, Tobacco, Firearms & Explosives.

U.S.-MEXICO AND CENTRAL AMERICAN NATIONS INCREASE COOPERATION FOR LOW CARBON ELECTRICITY

FROM: U.S. DEPARTMENT OF STATE

President Obama and Leaders of Mexico and Central America Expand Low Carbon Electricity Cooperation

Fact Sheet
Office of the Spokesperson
Washington, DC
May 4, 2013

During his May 2-4 visit to Mexico and Costa Rica, President Obama met with heads of state of Central America, Mexico, and the Dominican Republic to discuss U.S. economic engagement and the Connecting the Americas 2022 (Connect 2022) initiative, launched by Colombia at the 2012 Summit of the Americas. As a key component of the Energy and Climate Partnership of the Americas, Connect 2022 seeks to provide, within a decade, all citizens of the hemisphere with access to reliable, clean, and affordable electricity through increased electrical interconnection. High electricity prices in Central America undermine investment and jobs and affect the lives of all citizens. With Mesoamerica’s rich geothermal, solar, wind, and hydropower resources, a diversified, lower carbon power sector can counteract these challenges.
Interconnection creates larger markets that can help attract the $25 billion in power sector investments needed in Central America by 2030. Through the Central American Electrical Interconnection System (SIEPAC) project – which connects Central American electricity grids from Guatemala to Panama – a vibrant electricity market bringing additional economic opportunity, clean energy investment, and energy security to the region will soon be a reality. To advance this shared objective, leaders agreed to convene a Connect 2022 Mesoamerican ministerial in June 2013, hosted by the Inter-American Development Bank (IDB) in Washington, D.C., at which Deputy Secretary of State William J. Burns will deliver a keynote address.
The United States is supporting these efforts. U.S. companies are now associated with over 4 gigawatts (GW) lower carbon generation capacity in Mesoamerica. Since 2010, the U.S. Trade and Development Agency (USTDA) has invested in eight clean energy activities in Mexico and Central America, including support for feasibility studies, pilot projects, study tours, and other technical assistance. The Overseas Private Investment Corporation (OPIC) and Export-Import (EXIM) Bank of the United States are tracking potentially several hundred million dollars in new clean energy investments in the region:
A $29 million loan EXIM to a Honduran company will expand generation at the Cerro de Hula Wfrom
ind Farm, using equipment manufactured in Pennsylvania;
U.S.-based Sempra Energy plans to begin construction soon on a 156 megawatts (MW) wind farm in Baja California, which will send clean renewable energy to San Diego;
A 120 MW plant being developed in northern Mexico would use U.S. natural gas and Mexico’s transmission grid to send cleaner electricity to Guatemala; and
Nevada’s Ormat Technologies, Inc. will soon break ground on a 35 MW geothermal plant – Honduras’ first. Ormat also operates and plans to expand on plants in Guatemala.

EXPORT-IMPORT BANK CHAIRMAN COMPLETS MISSION TO MEXICO

FROM: U.S. EXPORT-IMPORT BANK

Ex-Im Bank Chairman Hochberg Concludes Successful Business Development Mission in Mexico City
Chairman Encourages Mexican Businesses to "Buy American"

Mexico City, Mexico: Fred P. Hochberg, chairman and president of the Export-Import Bank of the United States (Ex-Im Bank), concluded a successful business-development mission in Mexico March 13 – March 15. During his visit, Hochberg met with local businesses and government leaders to promote Ex-Im Bank financing. The Bank’s financing helps support the purchase of U.S. goods and services by Mexican buyers.

"As our nation’s leading trading partner and Ex-Im Bank’s top customer, Mexico provides enormous opportunities for American businesses and workers," said Hochberg. "I am pleased with the outcome of our meetings and look forward to continuing to work with our partners in Mexico on projects that boost our nations’ economies and create jobs on both sides of the border."

"With bilateral trade of over half a trillion dollars in 2012, Mexico is our second-largest export market and our third-largest source of imports," Ambassador Wayne said. "Supply chains are integrated across the border and thousands of jobs on both sides of the border depend on smooth, open bilateral trade. I am grateful for Chairman Hochberg’s visit and to our Mexican government and private sector counterparts for looking for new ways to build on our strong economic partnership."

While in Mexico City, Hochberg met several business and financial leaders, including Enrique de la Madrid Cordero, director of Bancomext; Carlos Slim Domit, chairman of board, Grupo Carso; Andrés Conesa, chairman of AeroMexico; Eduardo Tricio, chairman of Grupo Industrial Lala; Claudio X. Gonzalez, chairman of Consejo Mexicano de Hombres de Negocios; Alejandro Alonso, CEO of Aerolineas Ejecutivas; Emilio Lozoya Austin, director general of PEMEX; Francisco Rojas, director of CFE; Agustin Carstens, governor of Mexico´s Central Bank; and Luis Videgaray, secretary of Hacienda, Ministry of Treasury.

Mexico is one of nine key markets (others are Brazil, Colombia, Turkey, South Africa, Nigeria, India, Indonesia and Vietnam) where Ex-Im Bank is focusing its business-development efforts because of the country's infrastructure and development needs. Mexico is currently the largest market exposure in Ex-Im's portfolio ($8.5 billion in FY’12).

TEXAS-BASED MEDICAL DEVICE COMPANY CHARGED BY SEC WITH BRIBING MEXICAN OFFICIALS

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., July 10, 2012 – The Securities and Exchange Commission today charged Texas-based medical device company Orthofix International N.V. with violating the Foreign Corrupt Practices Act (FCPA) when a subsidiary paid routine bribes referred to as “chocolates” to Mexican officials in order to obtain lucrative sales contracts with government hospitals.

The SEC alleges that Orthofix’s Mexican subsidiary Promeca S.A. de C.V. bribed officials at Mexico’s government-owned health care and social services institution Instituto Mexicano del Seguro Social (IMSS). The “chocolates” came in the form of cash, laptop computers, televisions, and appliances that were provided directly to Mexican government officials or indirectly through front companies that the officials owned. The bribery scheme lasted for several years and yielded nearly $5 million in illegal profits for the Orthofix subsidiary.

Orthofix agreed to pay $5.2 million to settle the SEC’s charges, and agreed to pay a $2.22 million monetaryv penalty as part of a deferred prosecution agreement announced today by the U.S. Department of Justice.

“Once bribery has been likened to a box of chocolates, you know a corruptive culture has permeated your business,” said Kara Novaco Brockmeyer, Chief of the SEC Enforcement Division’s Foreign Corrupt Practices Act Unit. “Orthofix’s lax oversight allowed its subsidiary to illicitly spend more than $300,000 to sweeten the deals with Mexican officials.”

According to the SEC’s complaint filed in U.S. District Court for the Eastern District of Texas, the bribes began in 2003 and continued until 2010. Initially, Promeca falsely recorded the bribes as cash advances and falsified its invoices to support the expenditures. Later, when the bribes got much larger, Promeca falsely recorded them as promotional and training costs. Because of the bribery scheme, Promeca’s training and promotional expenses were significantly over budget. Orthofix did launch an inquiry into these expenses, but did very little to investigate or diminish the excessive spending. Later, upon discovery of the bribe payments through a Promeca executive, Orthofix immediately self-reported the matter to the SEC and implemented significant remedial measures. The company terminated the Promeca executives who orchestrated the bribery scheme.

The SEC’s proposed settlement is subject to court approval. Orthofix consented to a final judgment ordering it pay $5.2 million in disgorgement and prejudgment interest, and permanently enjoining the company from violating the books and records and internal controls provisions of the FCPA. Orthofix also agreed to certain undertakings, including monitoring its FCPA compliance program and reporting back to the SEC for a two-year period.

The SEC’s investigation was conducted by Carol Shau and Alka N. Patel in the Los Angeles Regional Office. The SEC acknowledges and appreciates the assistance of the U.S. Department of Justice’s Criminal Division - Fraud Section and the Federal Bureau of Investigation.

G-20 MEETING IN GUADALAJARA, MEXICO TO DISCUSS LABOR AND EMPLOYMENT

FROM:  U.S. DEPARTMENT OF LABOR
The G20 Labor and Employment Ministers in Guadalajara, Mexico Photo Credit: U.S. Department of Labor.  
May 17-18, 2012 — Guadalajara, Mexico
Making a World of Difference
Labor and employment ministers from the G20 countries met in Guadalajara, Mexico for their third annual summit. The U.S. Department of Labor hosted the historic first meeting in 2010. For two days, the ministers discussed how to achieve quality employment for more of the world's population, explored ways to create employment opportunities for young people and examined the prospects for employment in emerging high growth sectors. Mexican President Felipe Calderon joined the meeting for the concluding session at which Secretary Solis, speaking on behalf of all the G20 ministers, said, "The crisis our young people face also threatens our national social protection floors and has a damaging effect on all workers." The ministers' conclusions noted that employment rates have not yet returned to pre-crisis levels and that in some countries unemployment and the number of people in informal and precarious jobs continues to require ongoing attention. They noted the need to promote employment policies for youth and other vulnerable groups, agreed that green growth may be a source of job creation, and that the creation of quality jobs would contribute to poverty reduction and social inclusion.

They also called upon the G20 leaders to strengthen the relationship between labor and finance ministers to address links between growth and employment. While in Mexico, Solis participated in a bilateral meeting with Brazil's Labor Minister Carlos Brizola Neto. The two signed a memorandum of understanding that strengthens collaboration on employment discrimination, collective bargaining, safety and health, child labor, forced labor and other issues.

G20 Labour and Employment Ministers' Conclusions
Since our last meeting in Paris in September 2011, the global economy has shown a modest recovery. Nonetheless, in most countries, this moderate growth is not reflected in employment rates, which have not yet returned to pre-crisis levels. In some of our countries, the rate of unemployment and the number of people in informal and precarious jobs continues to require ongoing attention. According to the International Labour Organisation (ILO), there is still a global deficit of around 50 million compared to the situation before 2008.

As stated by our Leaders in Cannes, “employment must be at the heart of the actions and policies to restore growth and confidence that we undertake under the Framework for strong, sustainable and balanced growth.” In Pittsburgh, they agreed to put quality jobs at the heart of the recovery. We fully reaffirm that commitment and we emphasize that the creation of quality employment is more crucial than ever.

At the meetings in Washington, D.C., in April 2010, and Paris in September 2011, we agreed on the importance of promoting policy actions that allow overcoming the social and employment effects of the crisis. In Paris, we stressed the importance of improving active employment policies, particularly for youth and other vulnerable groups; strengthening social protection by establishing nationally determined social protection floors; promoting effective application of social and labour rights; and strengthening the coherence of economic and social policies. These objectives, which are mutually reinforcing, remain high priorities as they are the basis for promoting a strong, sustainable and balanced growth.

One of our main concerns is the creation of quality jobs. Quality employment can contribute to a more stable growth that helps individuals overcome poverty and become more socially included, as well as improving income distribution. Governments, workers and employers acting together through social dialogue can make an essential contribution to these goals.

Promoting quality employment is one of the major challenges facing G20 economies. The complex labour market situation in most of our economies has severely impacted some segments of the population, particularly youth and other vulnerable groups. Unemployment rates among young women and men are twice the overall unemployment rate and in some countries even higher. The sense of urgency was shared during our meeting in Paris in September 2011 and confirmed by our Leaders in Cannes who agreed to create a G20 intergovernmental Task Force on Employment, which, since its inception in December 2011, has been identifying strategies for youth employment based on best practices and policy responses.

Finding ways out of the jobs crisis requires us to identify innovative initiatives, particularly in growing areas. We should explore the potential of green growth, in the context of sustainable development, as a means to foster the creation of quality jobs, inclusive economic growth and the sustainable use of natural resources.

In our meeting in Guadalajara, we discussed policies to create quality employment, successful strategies to promote youth employment and options to generate jobs linked to green growth. Even though many challenges are shared among countries, the priorities for action must reflect different national contexts and realities. From our dialogue, we present the following conclusions:

I. Creation of quality employment and decent work
The crisis has had diverse effects for the G20 economies. Our role as Labour and Employment Ministers responding to the crisis is crucial to promote the creation of more quality jobs within the formal sector, with decent wages and social security coverage. Our role is also to protect workers' rights while fostering policies and programmes that allow workers to acquire the skills required in the labour market to give them access to employment opportunities.

Decent work expresses the hopes of our populations for a better future and plays a significant role in improving their living standards. Creating the conditions to provide those who enter the labour market with decent work will lay the foundations of a more equal society in which people better share the benefits of globalisation. Therefore, we reaffirm our commitment to continue encouraging employment, social protection, social dialogue and full respect of the fundamental principles and rights at work.

As Ministers, we shall continue supporting and implementing policies that foster job opportunities, provide training, enhance skills and increase employability. These activities lead to greater productivity thereby contributing to strengthening economic development, attracting investment and increasing social cohesion.

Promoting equal opportunities in the labour market is a key pillar for shared growth and development. Therefore, we will continue to promote policies that increase people's employability, match skills with market needs, improve public employment services, integrate gender perspectives in policies and programmes, and fight any kind of discrimination in workplaces.

Social protection systems play an important role as automatic stabilisers in the crisis. At the meeting in Paris, we agreed to develop "nationally defined social protection floors with a view to achieving strong, sustainable and balanced economic growth and social cohesion." In this sense, and within our responsibilities and resources, we will contribute to developing policies that improve our social security systems, to reach an appropriate balance between efficient active labour market measures and effective social protection. We will also encourage better cooperation with the G20 Development Working Group to assist developing countries in capacity building for implementing nationally determined social protection floors. In this perspective we welcome the efforts of coordination, cooperation and knowledge sharing among international organizations, which are in line with our conclusions in Paris. In consequence of our recommendations made in Paris, we welcome the cooperation that has taken place between ILO and IMF, in collaboration with other international organisations, on sustainability of social protection floors and encourage its continuation. We look forward to the possible adoption of an ILO recommendation on social protection floors during the upcoming International Labour Conference in June 2012.

In view of the large share of employment in informal activities in some of our countries and the consequent low productivity and quality of employment, we should design and implement policies directed at increasing participation in the formal labour market. We should also devise ways to improve the conditions of workers in the informal sector. Those countries should make social protection policies more effective, while expanding their coverage to include previously excluded workers, particularly those in the informal economy. These measures should also help transition from the informal to the formal sector.

As our Leaders pointed out in Cannes, "actions to address immediate risks to recovery must be complemented by sustained, broad-based reforms to boost confidence, raise global output and create jobs." Structural reforms should maintain employment as a priority, especially for youth and other vulnerable groups. These should also be a mechanism to promote gradual access from the informal to the formal labour market, that is, jobs with social security and fair and dignified income. They should also be based upon increasing the efficient functioning of labour market institutions. Structural reforms should contribute to tackling labour market segmentation and the informal sector. They can also promote the increase of production and income.

The implementation of structural reforms must not affect core workers' rights and must ensure full respect for the Fundamental Principles and Rights at Work as set out in the 1998 ILO Declaration. In this sense, we reaffirm our commitment to respect, promote and realize those principles. In addition, we support the 2008 Declaration on Social Justice for a Fair Globalisation and the Global Jobs Pact.

It is necessary to continue promoting coherence between social, economic, financial, environmental and all other policies at the national and international levels, so that they are efficient and have an impact on the creation of quality employment. It is also important to strengthen coherence among international organisations. In this regard, we reiterate our support for the consultation of multilateral organisations with an employment and social mandate, when appropriate, to assess the social impact of economic policies advocated by other international organisations. We welcome the development of multilateral cooperation, including South-South cooperation, to assist countries that request it to tackle multifaceted problems.

We welcome the contribution and input of worker and employer organisations to the G20 Labour and Employment process. As stated in the ILO Declaration on Social Justice for a Fair Globalisation, social dialogue within and across borders is relevant to achieving solutions and building up social cohesion and the rule of law. In this regard, we will continue holding regular consultations with our social partners as part of the process of the G20 Employment and Labour Ministers' Meetings.

II. Promotion of Youth Employment
In the current economic context, young people are at very high risk of remaining unemployed or underemployed for long periods. The longer they remain in this situation, the harder it is for them to find a job, acquire or retain skills. This could have a long-lasting effect on our youth, potentially undermining their ability to fully integrate into the economy and thereby affecting both the individual and our societies. Given the importance of these issues, we will renew our efforts to address them.

We agree to strengthen our commitment to our youth by promoting the improvement of employability, equal opportunities, entrepreneurship and job creation for youth, providing them with skills and training matching labour market needs. We will strengthen, as appropriate, social protection mechanisms combined with active labour market policies to assist youth.

We acknowledge the work of the G20 Task Force on Employment in sharing our experiences and identifying suitable policy actions on youth employment. We will take its recommendations (see annex) into account in our policy development, adapting them according to our national circumstances and needs. We will particularly:

Intensify our national efforts on tackling youth unemployment, where necessary, on one or more measures from a body of policy orientations and common experiences seen in the G20 Task Force on Employment.
Promote, and when necessary, strengthen quality apprenticeship systems that ensure high level of instruction and adequate remuneration and avoid taking advantage of lower salaries.

Consider programmes that have proven effective in allowing a successful school-to-work transition.
Promote internships, on-the-job training, apprenticeships and professional experience.
Foster sharing of experience in the design and implementation of apprenticeship programmes and explore ways to identify common principles across the G20 countries by facilitating a dialogue among our social partners who have presented us a shared sense of the importance of apprenticeships.

Continue to cooperate with other Ministries and other stakeholders, where appropriate, to provide career guidance, education and to facilitate skills acquisition with a strong focus on developing work experience and promoting decent work.

Support youth entrepreneurship, which might include the provision of advice, financial support, mentoring and the facilitation of mobility of young entrepreneurs.

Explore voluntary technical cooperation programmes based on best practices that can be conducted by G20 countries in conjunction with countries seeking to address youth employment. These may be conducted on a bilateral basis, and where appropriate, together with international organisations.

Request, as appropriate, that the ILO, OECD, and other international organisations work with our national institutions, taking into account our specific contexts and diversity, to analyse qualitative and quantitative data to better understand the situation of young people in G20 countries and inform policy development.
Work with the ILO, OECD, other international organisations, and social partners to support the implementation of our national initiatives for youth employment.

III. Inclusive green growth as quality employment generator, in the context of sustainable development
Transition to greener economies, in the context of sustainable development, may open opportunities to reduce social inequalities and generate decent work. The transformation to new technologies will lead to the creation of new occupations and may change skills requirements for existing jobs. A successful and fair transition to these new technologies will require better labour market information, the adaptation of training systems and new ways to improve the skills of workers, according to national realities and contexts. Hence, high-level cooperation among Ministries, across different levels of government and agencies and with social partners is needed to foster the creation of quality employment linked to inclusive green growth, harmonizing it with economic policy.

Active labour market policies should react to the changing labour market by providing access to effective job search services, adequate labour market information and training opportunities. Public employment services and other partners should play an important role by linking supply and demand, disseminating information on training opportunities, and providing an overview of the skills required to help workers benefit from green growth. An equitable transition that provides decent work, with a particular emphasis on occupational health and safety, for those who might be affected by measures resulting from efforts to implement green growth, should be considered.

Governments should encourage firms to adapt their productive and organisational processes to meet the needs of inclusive green growth. Particular attention is needed to ensure that small and medium enterprises, as the most important source of new and existing jobs, are part of green growth, by training and up-skilling processes of their workers, among other actions. Where appropriate, transfer of green technology in proper ways could be considered among companies as well as countries.

Green growth should be inclusive and contribute to poverty eradication and sustainable development. Social dialogue should contribute to promoting the greening of workplaces, work organisations and production methods.

We look forward to the results of the forthcoming United Nations Conference on Sustainable Development Rio+20, encouraging long-term sustainable development and the creation of quality jobs, especially for youth and other vulnerable groups.

IV. The way forward
We will present to the consideration of our Leaders the proposals and initiatives contained in these Conclusions. In summary, we believe that economic growth should be based on quality employment, that is, jobs in the formal sector, with social security, dignified income and full protection of labour rights. Particularly, we emphasize the need to promote policies that generate employment for youth and other vulnerable groups, and facilitate the school-to-work transition to ensure the long-term sustainability of our economies. We agree that inclusive green growth, in the context of sustainable development, may be a source of job creation, decent work and will require policies to facilitate the acquisition of new skills. Finally, we agree that quality employment contributes to poverty reduction and social inclusion.

We reaffirm the importance of policy coherence between growth and employment, and between macroeconomic and employment policies at the national and international levels. Therefore, we recommend our Leaders strengthen the cooperation between G20 Finance and Labour and Employment Ministers on the links between growth and employment. In this regard, we welcome the upcoming report from international organisations on how the G20 Framework for Strong, Sustainable and Balanced Growth can contribute to job creation.

We will ask our Leaders to take note that the current implications of high youth unemployment go beyond the immediate circumstance of youth: the current high levels of youth unemployment and underemployment in many countries impact the sustainability of our nationally determined social protection floors, and affect the speed of skill acquisition needed to sustain high productivity-led growth.

We will bring our Leaders' attention to the work accomplished by the G20 Task Force on Employment, namely with respect to the sharing of best practices, measures to improve the skills required to meet the needs of the labour market, the importance of adequate orientation tools for youth, and ideas to enhance nationally determined social protection floors.

Given the contribution made by the G20 Task Force on Employment in the last semester, we instruct it to continue exploring issues related to youth employment as it finalizes its present mandate in November 2012. We also instruct it to update its findings and the forum on best practices. We recommend that our Leaders support its extension for one more year, and consider that its focus should be decided under the leadership of the Russian Presidency in order to provide input for the Ministerial meeting to be held in 2013.

We appreciate the work done by the ILO and the OECD, with inputs from other international organizations, with respect to the links between the G20 Framework for strong, sustainable and balanced growth and job creation. In addition, we recognize the valuable assistance that the ILO and the OECD provided in the preparation of our meeting and invite them to continue their support for our work.

We acknowledge the importance of inclusive, diverse and constructive social dialogue during the Mexican Presidency of the G20. In this regard, we welcome the meetings of L20 and B20 that are taking place in 2012.

We also agree to hold our next meeting in 2013 under the Presidency of the Russian Federation. We thank the Mexican Presidency for its leadership and guidance. We welcome this, and we look forward to working constructively with Russia.

FUNDING OF INTERNATIONAL PROGRAMS ON INTELLECTUAL PROPERTY TRAINING

FROM:  U.S. STATE DEPARTMENT
Intellectual Property Training Programs Funded
Media Note Office of the Spokesperson Washington, DC
April 19, 2012
As part of U.S. efforts to combat transnational crime and promote the protection of intellectual property rights (IPR) worldwide, the U.S. Department of State has approved twelve projects totaling $2.6 million in Fiscal Year 2011 anticrime funds. These projects will enable U.S. law enforcement agencies and diplomatic missions to collaborate on the delivery of IPR protection criminal enforcement training and technical assistance programs for foreign law enforcement partners.

Training and technical assistance in the investigation and prosecution of IPR crime will be provided to foreign law enforcement partners in nations across the Pacific Rim, Latin America, and sub-Saharan Africa. The Bureau of International Narcotics and Law Enforcement Affairs and the Bureau of Economic and Business Affairs selected the projects after considering input from the U.S. Intellectual Property Enforcement Coordinator, other federal agencies, our overseas missions, Congress, and industry representatives.

The twelve projects are:
1) Africa - Western Regional Workshops $182,000
Training for West African customs authorities on methods to identify and seize infringing goods.
2) Africa - Sub-Saharan Regional Workshops $525,920
Workshops for Sub-Saharan African law enforcement partners focusing on border enforcement, following the money trail, organized crime involvement in trafficking of counterfeit medicines, and gathering electronic evidence.
3) Africa - East Central Regional Workshops $255,936
Regional training for East African law enforcement authorities in combating counterfeit medicines which threaten human health and safety.
4) ASEAN $242,329
A series of workshops for Association of Southeast Asian Nation (ASEAN) member state judges and prosecutors focused on judicial and prosecutorial management of IPR cases, especially those that involve transnational organized crime.
5) Brazil $150,644
Training seminars through the U.S. Embassy partnership with the Brazilian Government focusing on “notorious markets” identified in the United States Trade Representative (USTR) Special 301 Out-Of-Cycle reviews.
6) Chile $100,000
Training for Chilean judges on handling IPR crimes cases, including development of a judicial bench book and follow up monitoring by the U.S. Mission.
7) Colombia $70,000
Training for the Colombia National Police on combating IPR crime.
8) South Asia Regional $210,185
Joint workshops with Indian, People’s Republic of China, and ASEAN IPR enforcement officials to strengthen and build stronger cross-border partnerships.
9) Mexico $438,814
Training for Mexican enforcement partners on following the money trail, digital evidence in online piracy cases, and border and customs enforcement.
(10) Philippines $175,171
Seminars for Philippine judges and prosecutors on courtroom and case management procedures in IPR cases.
(11) Thailand $184,000
Training for Thai judges, customs officials, and prosecutors to strengthen skills needed to carry out Thai IPR reforms.
(12) Turkey $106,375
Training for Turkish judges and law enforcement officials involved in new special IPR courts.