Tag Archives: Mexico

Trump reassures farmers immigration crackdown not aimed at their workers

Migrant farmworkers with H-2A visas walk to take a break after harvesting romaine lettuce in King City, California, U.S

By Mica Rosenberg and Kristina Cooke

WASHINGTON/SAN FRANCISCO (Reuters) – President Donald Trump said he would seek to keep his tough immigration enforcement policies from harming the U.S. farm industry and its largely immigrant workforce, according to farmers and officials who met with him.

At a roundtable on farm labor at the White House last month, Trump said he did not want to create labor problems for farmers and would look into improving a program that brings in temporary agricultural workers on legal visas.

“He assured us we would have plenty of access to workers,” said Zippy Duvall, president of the American Farm Bureau Federation, one of 14 participants at the April 25 meeting with Trump and Agriculture Secretary Sonny Perdue.

During the roundtable conversation about agriculture, farmers and representatives of the sector brought up labor and immigration, the details of which have not been previously reported. Some farmers told Trump they often cannot find Americans willing to do the difficult farm jobs, according to interviews with nine of the 14 participants.

They said they were worried about stricter immigration enforcement and described frustrations with the H-2A visa program, the one legal way to bring in temporary seasonal agricultural workers.

The White House declined to comment on the specifics of the discussion, but described the meeting as “very productive.” The U.S. Department of Agriculture did not respond to a request for comment on the April meeting.

About half of U.S. crop workers are in the country illegally and more than two-thirds are foreign born, according to the most recent figures from the U.S. Department of Labor’s National Agriculture Workers’ Survey.

During the roundtable, Luke Brubaker, a dairy farmer from Pennsylvania, described how immigration agents had recently picked up half a dozen chicken catchers working for a poultry transportation company in his county.

The employer tried to replace them with local hires, but within three hours all but one had quit, Brubaker told the gathering at the White House.

Trump said he wanted to help and asked Secretary Perdue to look into the issues and come back with recommendations, according to the accounts.

While other issues such as trade, infrastructure and technology were also discussed, participants were more positive after the meeting about the conversation on foreign labor “than about anything else we talked about,”  said Bill Northey, a farmer and Iowa’s secretary of agriculture.

RED TAPE

Tom Demaline, president of Willoway Nurseries in Ohio, said he told the president about his struggles with the H-2A guestworker program, which he has used for 18 years.

He told Trump the program works in concept, but not in practice. “I brought up the bureaucracy and red tape,” he said. “If the guys show up a week or two late, it puts crops in jeopardy. You are on pins and needles all year to make sure you get the workers and do everything right.”

While use of the program has steadily increased over the past decade, it still accounts for only about 10 percent of the estimated 1.3 million farmworkers in the country, according to government data. In 2016, the government granted 134,000 H-2A visas

Employers who import workers with H-2A visas must provide free transportation to and from the United States as well as housing and food for workers once they arrive. Wage minimums are set by the government and are often higher than farmers are used to paying.

Steve Scaroni, whose company Fresh Harvest brings in thousands of foreign H-2A workers for growers in California’s Central valley, says, however, that he could find work for even more people if he had more places to house them.

Trump recently signed another executive order titled “Buy American, Hire American,” calling for changes to a program granting temporary visas for the tech industry, but not to visas used by farmers and other seasonal businesses, including Trump’s own resorts.

FARMER CONCERNS

Trump also signed two executive orders, just days after taking office, focused on border security that called for arresting more people in the United States illegally and speeding up deportations.

Roundtable participants said that many farmers have worried about the effect of the stepped up enforcement on their workforce, but Trump told them his administration was focused on deporting criminals, not farmworkers.

“He has a much better understanding about this than some of the rhetoric we have seen,” said meeting attendee Steve Troxler, North Carolina’s agriculture commissioner and a farmer himself.

The farmers at the meeting said they stressed to the president the need for both short-term and permanent workers. They said there should be a program to help long-time farmworkers without criminal records, but who are in the country illegally, to become legal residents.

Last Tuesday, Democrats in the House and Senate said they would introduce a bill to give farmworkers who have worked illegally in the country for two consecutive years a “blue card” to protect them from deportation.

Brubaker, the Pennsylvania farmer, said he liked what he had heard about the bill and hoped it would get the president’s support to make it a bipartisan effort.

“The administration has got something started here,” he said of the meeting with farm leaders. “It’s about time something happens.”

(Reporting by Kristina Cooke in San Francisco and Mica Rosenberg in Washington; Additional reporting by Julia Love in Salinas, California; Editing by Sue Horton and Mary Milliken)

A decade into drug gang fight, Mexican army pushes to return to base

Mexican General Alejandro Ramos Flores, head of the defense ministry's legal department, speak during an interview with Reuters at the Secretariat of National Defense (SEDENA), in Mexico City, Mexico May 11, 2017. Picture taken May 11, 2017. REUTERS/Henry Romero

By Lizbeth Diaz

MEXICO CITY (Reuters) – After more than a decade on the streets of Mexico battling ruthless drug cartels, the nation’s battered armed forces have thrown their weight behind a law that would force them to return to barracks and put the fight back in the hands of the police.

Since former President Felipe Calderon sent out the army to bring the gangs to heel at the end of 2006, about 150,000 people have died in the violence, including hundreds of soldiers as well as scores of police and members of other security forces.

The bloody struggle has also taken a heavy toll on the reputation of the armed forces, exposing one of Mexico’s most respected institutions to the corrupting influence of organized crime and the risk of extrajudicial killings.

General Alejandro Ramos Flores, head of the defense ministry’s legal department, told Reuters in an interview that a bill currently in congress known as the Law of Internal Security would oblige civilian authorities to retake control of fighting organized crime.

“We’re not going to resolve the problem. It’s a problem with more social and economic aspects. Everything has to converge to resolve the problem and return it to the authorities responsible for taking charge of this situation,” Ramos said.

President Enrique Pena Nieto replaced Calderon in December 2012, vowing to return the military to base, but it has remained stuck in the struggle without any strict legal formalization of the division of responsibilities between the various forces.

This has often proven a recipe for trouble.

Speaking on condition of anonymity, an army source said on occasion the armed forces would arrest suspects only to have civilian authorities such as local police or prosecutors fail to appear or release them.

More damaging have been accusations that Mexican soldiers have acted outside the law, often with impunity, to kill suspects, eroding public support for the army.

This week Pena Nieto and the defense ministry called for an investigation into a video apparently showing a soldier shooting dead a prone man at point blank range following a clash with suspected criminals in the state of Puebla.

Two shootouts between federal security forces and suspected gang members in 2014 and 2015 that took more than 60 lives prompted accusations by human rights groups that federal forces had carried out extrajudicial killings.

And questions continue to dog the army over its failure to prevent the abduction and apparent massacre of 43 trainee teachers by corrupt police and local gangsters in the southwestern city of Iguala in September 2014.

The government strongly disputed a report this week that said Mexico had the second-highest number of murders last year among countries considered in “armed conflicts.”

Mexico said its drug fight was not an armed conflict, that the 2016 violence numbers were not final and challenged the report’s methodology, saying that per capita other countries in Latin America had far higher murder rates.

In December, General Salvador Cienfuegos, Mexico’s minister of defense, declared that fighting the drug war had pulled the Mexican military away from its core functions.

“We don’t want them to give us more responsibilities, or for them to give us the police’s responsibilities. We don’t want this law to foresee anything that would violate human rights,” Ramos said.

(Writing by Dave Graham; Editing by Cynthia Osterman)

In blow to Trump, GE backs NAFTA and voices support for Mexico

Mexico's President Enrique Pena Nieto smiles with Jeffrey R. Immelt, Chief Executive of General Electric at Los Pinos presidential residence in Mexico City, in this undated handout photo released to Reuters by the Mexican Presidency on May 12, 2017. Mexico Presidency/Handout via REUTERS

By Dave Graham

MONTERREY, Mexico (Reuters) – General Electric <GE.N> on Friday praised Mexico as a big part of its future and said the company is “very supportive” of the North American Free Trade Agreement (NAFTA) that U.S President Donald Trump has threatened to ditch.

GE Chief Executive Officer Jeff Immelt said on a visit that Mexico had great potential and was not properly understood. He touted the conglomerate’s Mexican operations and the trade deal binding Mexico, Canada and the United States.

“GE as a company, we’re very supportive of NAFTA,” Immelt told employees at an event to mark the expansion of operations in the northern city of Monterrey. He said the trade accord could be modernized, as Mexico has argued.

Immelt sits on a Trump-appointed manufacturing council that Mexico has targeted for lobbying as Mexico and Canada push U.S. business leaders to defend NAFTA.

The GE boss said trade meant “win-win” opportunities across North America.

“We will continue to work constructively in the context of wanting to see a close relationship between the U.S. and Mexico,” he said, noting that GE’s exports to the rest of the world from Mexico were worth $3 billion.

“We’re optimistic about Mexico, we’re optimistic about what we can do here,” Immelt added, saying Latin America’s no. 2 economy would be a “big part” of GE’s future.

Earlier this month, Immelt urged the Trump administration to avoid protectionist policies, calling on it to level the playing field for U.S. companies with tax reform, revived export financing and improved trade agreements.

Trump touts a “Buy American” policy and has railed against U.S. companies moving operations to Mexico. He has threatened to ditch NAFTA, a lynchpin of the Mexican economy, if he cannot rework it to secure better terms for the United States.

Unlike some U.S. companies, GE has not backed off plans in Mexico, risking broadsides from Trump on Twitter.

Earlier, the Mexican presidency said in a statement that GE had stated an interest in doubling purchases from Mexican suppliers next year. Immelt did not mention this.

Vladimiro de la Mora, CEO for Mexico, said the figure came from an announcement last year and did not mean GE aimed to double purchases between this year and 2018.

On Thursday, GE said it had won a contract to provide plants producing two new gigawatts of power in Mexico and secured a separate $120 million, multi-year service deal.

De la Mora said GE could not yet reveal details of the 2 GW deal, but it was “likely” the value of the total investment in the power plants would exceed $500 million.

(Reporting by Dave Graham in Monterrey, Additional Reporting by Mexico newsroom in Mexico City; editing by Grant McCool and David Gregorio)

Mexico presses Trump to uphold NAFTA for good of both nations

U.S. President Donald Trump arrives aboard Air Force One at JFK International Airport in New York, U.S. May 4, 2017. REUTERS/Jonathan Ernst

MEXICO CITY (Reuters) – Mexico made a pitch to U.S. President Donald Trump on Wednesday to uphold the NAFTA trade deal, arguing that unwinding economic integration would hurt both nations, damaging U.S. exports, risking American jobs and hitting consumers north of the border.

Responding to a March 31 executive order by Trump for a review of the U.S. trade deficit, Mexico said its trade surplus with the United States was misunderstood and that the real hit to U.S. manufacturing jobs came with China’s accession to the World Trade Organization (WTO) in 2001.

Last year’s U.S. deficit with Mexico of $63.2 billion also reflected a weak peso after it was battered by uncertainty over the future of bilateral trade relations, according to a document published by the Mexican Embassy in Washington.

“The increasing integration of our economies makes Mexico critically important to the U.S. economy, not only as an export market, but also as a partner in production,” the director of the embassy’s trade and NAFTA office, Kenneth Smith, wrote.

Mexico was responding to the U.S. Commerce Department’s request for public input as it prepares a report for Trump on the United States’ $500 billion annual trade deficit. The report and public comments will be sent to Trump in June.

Mexico said that, without NAFTA, the average tariff on Mexican exports to the United States would be 3.5 percent, or about half the average tariff on U.S. exports to Mexico, because of the “most favored nation” clause that would apply under WTO rules.

U.S.-Mexican trade relations have been strained by Trump’s repeated vow to scrap the North American Free Trade Agreement if he cannot secure better terms for U.S. workers and industry.

Trump has cited the U.S. trade deficit with Mexico as proof that the United States was the loser in the relationship, saying the Americans would be better off if the two nations did not trade at all.

However, Mexico said 75 percent of its exports to the United States are inputs in U.S. production processes and that the United States has an $8 billion surplus in services.

“Workers on both sides of the border work together in the production of goods to successfully compete in global markets,” Smith said.

The U.S. energy industry also relies on exports to Mexico, which is now the biggest export market for U.S. refined oil products and natural gas, Smith said.

(Reporting By Frank Jack Daniel, Writing by Dave Graham and Mitra Taj)

Texas governor signs into law bill to punish ‘sanctuary cities’

FILE PHOTO: Texas Governor Greg Abbott speaks at a campaign rally for U.S. Republican presidential candidate Ted Cruz in Dallas, Texas February 29, 2016. REUTERS/Mike Stone/File Photo

By Jon Herskovitz

AUSTIN, Texas (Reuters) – Texas Republican Governor Greg Abbott signed into law on Sunday a measure to punish “sanctuary cities,” despite a plea from police chiefs of the state’s biggest cities to halt the bill they said would hinder their ability to fight crime.

The Texas measure comes as Republican U.S. President Donald Trump has made combating illegal immigration a priority. Texas, which has an estimated 1.5 million illegal immigrants and the longest border with Mexico of any U.S. state, has been at the forefront of the immigration debate.

“As governor, my top priority is public safety, and this bill furthers that objective by keeping dangerous criminals off our streets,” Abbott said in a statement. The law will take effect on Sept. 1.

The Republican-dominated legislature passed the bill on party-line votes and sent the measure to Abbott earlier this month. It would punish local authorities who do not abide by requests to cooperate with federal immigration agents.

Police officials found to be in violation of the law could face removal from office, fines and up to a year in prison if convicted.

The measure also allows police to ask people about their immigration status during a lawful detention, even for minor infractions like jaywalking.

Any anti-sanctuary city measure may face a tough road after a federal judge in April blocked Trump’s executive order seeking to withhold funds from local authorities that do not use their resources to advance federal immigration laws.

Democrats have warned the measure could lead to unconstitutional racial profiling and civil rights groups have promised to fight the Texas measure in court.

“This legislation is bad for Texas and will make our communities more dangerous for all,” the police chiefs of cities including Houston and Dallas wrote in an opinion piece in the Dallas Morning News in late April.

They said immigration was a federal obligation and the law would stretch already meager resources by turning local police into immigration agents.

The police chiefs said the measure would widen a gap between police and immigrant communities, creating a class of silent victims and eliminating the potential for assistance from immigrants in solving or preventing crimes.

One of the sponsors of the bill, Republican state Representative Charlie Geren, said in House debate the bill would have no effect on immigrants in the country illegally if they had not committed a crime.

He also added there were no sanctuary cities in Texas at present and the measure would prevent any from emerging.

(Reporting by Jon Herskovitz; Editing by Peter Cooney)

Mexican drug lord ‘El Chapo’ gets April 2018 U.S. trial date

Joaquin "El Chapo" Guzman (R) and his attorneys Michael Schneider (L) and Michelle Gelernt are shown in a sketch of a court appearance at the Brooklyn Federal Courthouse in the Brooklyn borough of New York City, New York, U.S., May 5, 2017. REUTERS/Jane Rosenberg

By Brendan Pierson

NEW YORK (Reuters) – A U.S. judge has scheduled the trial of Mexican drug lord Joaquin “El Chapo” Guzman — for years his country’s most wanted man — on drug trafficking and conspiracy charges for April 16, 2018.

U.S. District Judge Brian Cogan in Brooklyn federal court acknowledged at a hearing Friday that the date was “somewhat aspirational” and could be delayed, given the complexity of the case and the amount of evidence that lawyers must review ahead of trial.

The hearing came the day after Cogan refused to order Guzman released from solitary confinement in a New York City federal prison, where his court-appointed lawyers have said he faces needlessly harsh and restrictive conditions that make it difficult for him to mount his defense.

The judge did, however, rule that Guzman could send pre-screened letters to his wife, Emma Coronel, who was present at Friday’s hearing. She has not been allowed to visit him.

Michelle Gelernt, one of Guzman’s lawyers, again brought up the conditions of Guzman’s imprisonment at Friday’s hearing, saying it was difficult to review evidence because lawyers were only allowed to speak to Guzman through a plexiglass barrier.

Cogan said he would send a magistrate judge to look at the room where Guzman meets with his lawyers and make recommendations about how the problem could be overcome, though he said he did not want to “micro-manage” the prison.

Guzman also said at the hearing, through an interpreter, that he understood that four of the witnesses expected to testify against him had previously been represented by the same federal public defender’s office that represents him, though not by the same attorneys, raising the possibility of conflicts of interest.

He said he wished to keep his attorneys nonetheless.

All four of those witnesses, whose names have not been disclosed, are currently serving prison sentences in the U.S., Coogan said.

Guzman, who sold oranges as a child before turning to the drug trade in the 1970s, was extradited from Mexico to the United States to face drug trafficking charges on Jan. 19. He had previously escaped from two Mexican prisons.

In his most recent escape in 2015, Guzman walked out of prison through a mile-long, highly engineered tunnel from his cell, a sign of the huge influence he was able to wield even from behind bars.

(Editing by Alistair Bell)

Mexico, Canada seek U.S. soft spots to bolster NAFTA defense

FILE PHOTO: Canada's Prime Minister Justin Trudeau (R) and Mexico's President Enrique Pena Nieto arrive at a news conference on Parliament Hill in Ottawa, Ontario, Canada on June 28, 2016. REUTERS/Chris Wattie/File Photo

By Dave Graham and David Ljunggren

MEXICO CITY/OTTAWA (Reuters) – From launching a data-mining drive aiming to find supply-chain pressure points to sending officials to mobilize allies in key U.S. states, Mexico and Canada are bolstering their defenses of a regional trade pact President Donald Trump vows to rewrite.

Trump has blamed the North American Free Trade Agreement (NAFTA) for the loss of millions of manufacturing jobs and has threatened to tear it up if he fails to get a better deal.

Fearing the massive disruptions a U.S. pullout could cause, the United States’ neighbors and two biggest export markets have focused on sectors most exposed to a breakdown in free trade and with the political clout to influence Washington.

That encompasses many of the states that swept Trump to power in November and senior politicians such as Vice President Mike Pence, a former Indiana governor or Wisconsin representative and House Speaker Paul Ryan.

Prominent CEOs on Trump’s business councils are also key targets, according to people familiar with the lobbying push.

Mexico, for example, has picked out the governors of Texas, Arizona and Indiana as potential allies.

Decision makers in Michigan, North Carolina, Minnesota, Illinois, Tennessee, Wisconsin, Ohio, Florida, Pennsylvania, Nebraska, California and New Mexico are also on Mexico’s priority list, according to people involved in talks.

Mexican and U.S. officials and executives have had “hundreds” of meetings since Trump took office, said Moises Kalach, foreign trade chief of the Mexican private sector team leading the defense of NAFTA. (Graphic:http://tmsnrt.rs/2oYClp2)

Canada has drawn up a list of 11 U.S. states, largely overlapping with Mexico’s targets, that stand to lose the most if the trade pact enacted in 1994 unravels.

To identify potential allies among U.S. companies and industries, Mexican business lobby Consejo Coordinador Empresarial (CCE) recruited IQOM, a consultancy led by former NAFTA negotiators Herminio Blanco and Jaime Zabludovsky.

In one case, the analysis found that in Indiana, one type of engine made up about a fifth of the state’s $5 billion exports to Mexico. Kalach’s team identified one local supplier of the product and put it touch with its main Mexican client.

“We said: talk to the governor, talk to the members of congress, talk to your ex-governor, Vice President Pence, and explain that if this goes wrong, the company is done,” Kalach said. He declined to reveal the name of the company and Reuters could not immediately verify its identity.

Trump rattled the two nations last week when his administration said he was considering an executive order to withdraw from the trade pact, which has been in force since 1994. He later said he would try to renegotiate the deal first and Kalach said the lobbying effort deserved much credit for Trump’s u-turn.

“There was huge mobilization,” he said. “I can tell you the phone did not stop ringing in (Commerce Secretary Wilbur) Ross’s office. It did not stop ringing in (National Economic Council Director) Gary Cohn’s office, in the office of (White House Chief of Staff Reince) Priebus. The visits to the White House from pro-NAFTA allies did not stop all afternoon.”

Among those calling the White House and other senior administration officials were U.S. Chamber of Commerce chief Tom Donohue, officials from the Business Roundtable and CEOs from both lobbies, according to people familiar with the discussions.

PRIME TARGET

Mexico has been the prime target of NAFTA critics, who blame it for lost manufacturing jobs and widening U.S. trade deficits. Canada had managed to keep a lower profile, concentrating on seeking U.S. allies in case of an open conflict.

That changed in late April when the Trump administration attacked Ottawa over support for dairy farmers and slapped preliminary duties on softwood lumber imports.

Despite an apparently weaker position – Canada and Mexico jointly absorb about a third of U.S. exports, but rely on U.S. demand for three quarters of their own – the two have managed to even up the odds in the past by exploiting certain weak spots.

When Washington clashed with Ottawa in 2013 over meat-labeling rules, Canada retaliated by targeting exports from the states of key U.S. legislators. A similar policy is again under consideration.

Mexico is taking a leaf out of a 2011 trucking dispute to identify U.S. interests that are most exposed, such as $2.3 billion of yellow corn exports.

Mexico is also targeting members of Trump advisory bodies, the Strategic and Policy Forum and the Manufacturing Council, led by Blackstone Group LP’s Stephen Schwarzman and Dow Chemical Co boss Andrew Liveris respectively.

Senior Trump administration officials and Republican lawmakers in charge of trade, agriculture and finance committees also feature among top lobbying targets.

Canada has spread the task of lobbying the United States among ministries, official say, and is particularly keen to avoid disruption to the highly-integrated auto industry.

A core component of Mexico’s strategy is to argue the three nations have a common interest in fending off Asian competition and exploring scope to source more content regionally.

The defenders of NAFTA also say that it supports millions of jobs in the United States, and point out that U.S. trade shortfalls with Canada and Mexico have declined over the past decade even as the deficit with China continued to climb.

Part of IQOM’s mission is to identify sectors where NAFTA rules of origin could be modified to increase regional content.

For example, U.S., Canadian and Mexican officials are debating how the NAFTA region can reduce auto parts imports from China, Japan, South Korea or Germany, Mexican officials say.

“The key thing is to see how we can get a win-win on the products most used in our countries, and to develop common manufacturing platforms that allow us just to buy between ourselves the biggest amount of inputs we need,” said Luis Aguirre, vice-president of Mexican industry group Concamin.

Graphic: Trade battles – http://tmsnrt.rs/2pAdPcp

(Additional reporting by Michael O’Boyle Alexandra Alper, Ana Isabel Martinez, Ginger Gibson and Adriana Barrera; Editing by Tomasz Janowski)

U.S. coaxes Mexico into Trump plan to overhaul Central America

A member of the military police keeps watch during a routine foot patrol at El Pedregal neighbourhood Tegucigalpa, Honduras, May 3, 2017. REUTERS/Jorge Cabrera

By Gabriel Stargardter

MEXICO CITY (Reuters) – The United States is plotting an ambitious attempt to shore up Central America, with the administration of President Donald Trump pressing Mexico to do more to stem the flow of migrants fleeing violence and poverty in the region, U.S. and Mexican officials say.

The U.S. vision is being shaped by Department of Homeland Security (DHS) Secretary John Kelly, who is due to give a speech about his goals for Central America in Washington on Thursday.

Kelly, who knows Honduras, Guatemala and El Salvador well from his time as chief of the U.S. Southern Command, helped the administration of former President Barack Obama design his Alliance for Prosperity. That $750-million initiative sought to curtail Central American migration through development projects as well as law-and-order funding to crack down on the region’s dominant gangs.

Kelly aims to re-tool the Obama-era alliance without a large increase in American funding by pressing Mexico to shoulder more responsibility for governance and security in Central America, and by drumming up fresh private investment for the region, U.S. and Mexican diplomats say.

“What we’re going to see is … greater engagement directly between the Central Americans and Mexican government … (and) a more intense effort to integrate the economic side of this effort with the security side,” William Brownfield, the U.S. assistant secretary for International Narcotics and Law Enforcement Affairs, told Reuters.

“We’re going to see a strategy that has already been developed, but it is going to be pushed harder and more aggressively in the coming year, and the year after.”

The reshaped alliance stands in contrast to some of the isolationist views jostling for power in the White House. Still it’s consistent with Trump’s foreign policy efforts to pressure China to do more to tackle the North Korea nuclear threat and to get European allies to pick up more of the tab for NATO.

The plan also puts Mexico in a delicate spot. President Enrique Pena Nieto has repeatedly expressed his desire to preserve the North American Free Trade Agreement (NAFTA), which has become a pillar of Mexico’s economy.

But he must avoid the appearance of capitulating to Trump, who has enraged the Mexican public with his threats to withdraw from NAFTA and force Mexico to pay for his proposed border wall.

“We want to be on good terms with them, because we’re dealing with a much more important issue,” said a senior Mexican diplomat who was not authorized to speak publicly. “In return, we want a beneficial NAFTA renegotiation.”

Neither Kelly nor the DHS responded to requests for comment.

“The prosperity and security of Central America … represent a priority of Mexico’s foreign policy,” the country’s foreign ministry said in a statement.

“The Alliance for Prosperity … is a valuable tool that can be strengthened with the participation of other governments.”

A MAN WITH A PLAN

The new-look Alliance will be firmed up in Miami next month, when U.S., Mexican and Central American officials will meet to negotiate various issues, including Mexico’s role, according to a draft U.S. schedule obtained by Reuters.

Mexico’s Foreign Minister Luis Videgaray has said publicly Mexico is willing to work with the United States in stabilizing Central America, without giving much detail.

In private, though, local officials say cash-strapped Mexico lacks the money to invest significantly in the region – a fact that hasn’t eluded the United States.

“We do not have significant expectations of major … financial contributions by the government of Mexico at this time,” Brownfield said.

However, he said it was reasonable to expect Mexico to help train Central American officials, and deepen coordination along its southern border. Mexican government agencies could also work more closely with their southern counterparts, he added, citing the example of Colombia, which is training Central America’s police forces at the United States’ behest.

Brownfield said the re-designed plan would be executed by the State Department and development agency U.S. AID, working closely with the DHS. The Inter-American Development Bank (IADB) is working with U.S. AID to design mechanisms for luring fresh investment, he added.

IADB President Luis Alberto Moreno told Reuters the Miami meeting, coordinated with DHS officials, aimed to deliver “an investment shock” to create jobs and prevent migration.

However, the Mexican diplomat who requested anonymity expressed concern the new plan could presage a deeper militarization of Central America. The region’s armies have launched violent attacks on the powerful “Mara Salvatrucha” and “Calle 18” gangs, sparking accusations of rights abuses.

Mexico, which is also grappling with widespread violence, is open to training Central American security forces, the diplomat said, but won’t send troops to fight the gangs given its long-standing policy not to intervene in foreign conflicts.

The “Alliance for Prosperity” was cooked up by the Obama administration after a 2014 surge in child migrants from Central America. It aimed to stabilize Central America with funding for security and development. But critics say the focus skewed heavily toward funding for tackling drug smuggling and gangs.

Brownfield pointed to falling homicides in Honduras, where the murder rate has dropped to 59 killings per 100,000 people last year from 90.4 in 2012, as evidence it is starting to yield results. Still, Central America remains one of the most violent regions on earth.

Mexican diplomats say U.S. and Central American officials for years quietly pressed Mexico to join the alliance – pressure they ignored until Trump was elected, threatening to scrap NAFTA.

“Now we’re facing a different scenario because we have an American government pressuring us on lots of issues,” said the Mexican diplomat. “We want to be on good terms with the United States.”

(Additional reporting by Patricia Zengerle in Washington; Editing by Frank Jack Daniel and Marla Dickerson)

Mexico captures protégé, turned enemy, of drug lord Chapo Guzman

Accused drug kingpin Damaso Lopez (C), nicknamed “The Graduate”, is escorted by police officers in Mexico City, Mexico May 2, 2017. REUTERS/Carlos Jasso

MEXICO CITY (Reuters) – Mexican security forces on Tuesday arrested accused drug kingpin Damaso Lopez, believed to be locked in a bloody struggle for control of the Sinaloa Cartel against the sons of its captured leader Joaquin “El Chapo” Guzman.

The attorney general’s office announced that its agents with the help of the army had captured Lopez, 51, one of the top-ranking figures in the world’s most successful drug cartel, which has been destabilized by “El Chapo’s” extradition in January to the United States.

Guzman’s latest imprisonment triggered a violent power struggle that has led to daylight gun battles involving truck-mounted machine guns in the northwestern state of Sinaloa, with Mexican officials attributing the bloodshed to a tussle between Lopez and the former leader’s sons.

“(Lopez) is considered one of the main drug traffickers and generators of violence in Sinaloa and the south of the Baja California peninsula,” Omar Garcia, head of the Criminal Investigation Agency, told a news conference.

Last month the body of a man tossed from an airplane landed on a hospital roof in Lopez’s Sinaloan home town, Eldorado, and shootings have become common this year around the tourist resorts of Baja California.

Lopez was believed to have been seeking a new alliance with rival Jalisco New Generation Cartel, and his arrest will likely be a relief for Guzman’s family and their faction.

“This arrest reduces the possibility of an alliance that the detainee was seeking with another organized crime group that operates in several states of the country,” Garcia said.

Lopez, nicknamed “The Graduate,” was captured in an apartment in a middle-class Mexico City neighborhood in the early hours of Tuesday, a few weeks after a video emerged of him eating at a Mexico City restaurant.

He was held for several hours at the apartment with a heavy army presence outside the building before being sped in a convoy of white vehicles through the city to a unit of the attorney general’s office, live TV footage showed.

Lopez is himself a former security official, believed to have studied at Sinaloa’s state university, who Mexican officials say played a role in orchestrating Guzman’s first escape from prison in 2001, before joining the cartel.

The U.S Treasury Department in 2013 called him Guzman’s “right hand man” and froze his U.S. assets. He was indicted by a federal grand jury in the same year, accused of importing $280 million of drugs to the United States.

Guzman, who broke out twice from prison in Mexico, was recaptured for the last time in January 2016. One of the world’s most wanted drug lords, he was extradited to the United States to face charges there on Jan. 19, the eve of Donald Trump’s inauguration as U.S. president.

Trump has vowed to break the power of translational drug cartels and said that his planned wall on the U.S.-Mexico border would stem the flow of drugs into the United States. He has issued executive orders that aim to improve coordination between U.S. law enforcement agencies and their foreign partners.

(Reporting by Dave Graham and Miguel Gutierrez; Writing by Frank Jack Daniel; Editing by W Simon, Grant McCool and Lisa Shumaker)

Trump says was ‘psyched to terminate NAFTA’ but reconsidered

A truck heads towards the United States at the Lacolle border crossing in Lacolle, Quebec, Canada April 26, 2017. REUTERS/Christinne Muschi

By Jeff Mason and David Lawder

WASHINGTON (Reuters) – President Donald Trump told Reuters on Thursday that he was “psyched” to terminate the NAFTA trade deal with Canada and Mexico, but changed his mind after their leaders asked for it to be renegotiated instead.

Trump said in an interview with Reuters that he will not hesitate to change course again and pull the plug on the North American Free Trade Agreement if the negotiations become “unserious.”

His comments came at the end of a long 24 hours during which Ottawa and Mexico City were whipsawed over the Trump administration’s intentions over the 23-year-old trade pact.

“You know I was really ready and psyched to terminate NAFTA,” Trump said.

He decided that it would be better to terminate the trade deal after hearing about Wisconsin farmers’ struggles with new Canadian dairy rules that were shutting out their milk protein exports.

“You saw that, you wrote about it,” Trump said. “And I said I’ve had it. I’ve had it.”

But after administration officials said a withdrawal order was being prepared, Trump said he received phone calls from Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau asking to renegotiate the pact.

“I’m not looking to hurt Canada and I’m not looking to hurt Mexico. They’re two countries I really like,” Trump said. “So they asked to renegotiate, and I said yes.”

News of the possible U.S. pullout from NAFTA rattled financial markets on Wednesday. Relative calm returned on Thursday after Trump’s comments, and the Mexican peso strengthened 0.86 percent against the U.S. dollar, while the Canadian dollar was flat versus the greenback.

Mexico, Canada and the United States form one of the world’s biggest trading blocs, and trade disruptions among them could adversely affect farm, automotive, energy and other sectors in all three countries. NAFTA removed most trade and tariff barriers between the neighbors, but Trump and other critics have blamed it for deep U.S. job cuts.

Trump campaigned for president last year on a pledge to pull out of NAFTA if he could not renegotiate better terms. The United States went from running a small goods trade surplus with Mexico in the early 1990s to a $63-billion deficit in 2016.

Asked by Reuters what would make NAFTA a fair deal, Trump said: “Open markets. Open borders for trade” and “Fairness, no government subsidies so that it makes it impossible for our people to compete.”

He added that if the NAFTA negotiations “become unserious, I will terminate.”

As Trump spoke, a new trade irritant between the United States and Canada emerged, as Boeing Co asked the U.S. Commerce Department to investigate alleged price dumping and unfair Canadian government subsidies for Bombardier Inc’s new Canadian-made CSeries jetliners.

‘GET TO WORK’

Trudeau told a news conference in Saskatchewan he had urged Trump not to withdraw from the trade pact and warned that doing so “would cause a lot of short- and medium-term pain.”

“That’s not something that either one of us would want, so we agreed that we could sit down and get to work on looking at ways to improve NAFTA,” Trudeau said.

Canada sends 75 percent of its exports to the United States. On Tuesday, Trump said he did not fear a trade war with Canada, a day after his administration moved to impose tariffs on Canadian lumber.

In Mexico City, Mexican Foreign Minister Luis Videgaray said Pena Nieto had called Trump on Wednesday and spoken with him for about 20 minutes in a conversation focused exclusively on the looming talks over NAFTA’s “renegotiation and modernization.”

Trump has accused Mexico of luring away American factories and jobs with cheap labor and other advantages enabled by NAFTA. During the presidential campaign he accused Mexico of sending rapists and criminals into the United States, and as president plans a U.S.-Mexico border wall.

One of Trump’s first major acts after becoming president in January was to pull out of the 12-nation Trans-Pacific Partnership, negotiated by his Democratic predecessor Barack Obama.

Several agriculture lobby groups in Washington were told U.S Agriculture Secretary Sonny Perdue, confirmed by the Senate on Monday, met with Trump on Wednesday evening to dissuade him from withdrawing from NAFTA.

American Soybean Association President Ron Moore said, “When you’re talking about $3 billion in soybean exports a year, any threats to withdraw from agreements and walk away from markets makes farmers extremely nervous.”

Formal NAFTA talks likely will not get started until August. The U.S. Trade Representative’s office must first send Congress a notice that starts a 90-day consultation period preceding any negotiations.

A USTR spokeswoman said the notice would not be sent until the Senate confirmed Trump’s nominee for trade representative, Robert Lighthizer.

(Additional reporting by Stephen J. Adler, Jeff Mason, Steve Holland, Susan Heavey and Mohammad Zargham in Washington, Veronica Gomez and David Alire Garcia in Mexico City, David Ljunggren in Ottawa, and P.J. Huffstutter and Mark Weinraub; Writing by David Lawer and Will Dunham; Editing by Nick Zieminski and Clarence Fernandez)