Tag Archive for: Mexico´s economy

Electronic cyberattacks in Mexico raise alarm bells ahead of Sunday’s election

Bloomberg / Eric Martin with assistance by Michael Riley from Bloomberg / June 25

While Mexicans will cast their vote July 1 by paper ballot, electronic systems will be used to tally and transmit the results, which the electoral authorities will then release to trusted media outlets. The slightest disruption to the voting process can sow doubt and distrust, said Ron Bushar, vice president of government solutions for cybersecurity services company Mandiant. Tensions are already high in the country given that polls show Mexicans are likely to elect a leftist for the first time in almost five decades. That candidate, Andres Manuel Lopez Obrador, has accused his rivals of fraud and collusion to keep him from winning in the past two presidential elections, while his opponents say that his presidency would be a disaster for Mexico’s economy. Such polarization is fertile ground for cyber criminals. “The outcome of an election almost doesn’t matter” for hackers, Bushar said. It’s about “calling into question the legitimacy (of the process) or creating a lot of tension between the political parties.”

A warning came last December, when former U.S. National Security Adviser H.R. McMaster said that there was evidence of Russian interference in Mexico’s campaign, although he didn’t elaborate on how Russia was seeking to influence the process. Russia was mentioned again this month when candidate Ricardo Anaya’s team said a website it created to publish information questioning ties between Lopez Obrador and a contractor, was shut down by “an attack”. The Anaya campaign said the hack originated in Russia. The campaigns of Lopez Obrador, Anaya and Jose Antonio Meade didn’t immediately respond to requests for comment.

Achilles Heel

“Cybersecurity continues to be a potential Achilles heel of Mexico’s electoral process,” said Arturo Sarukhan, a former Mexican ambassador to the U.S. Part of the concern stems from other hacks in Mexico recently. The state-owned export promotion bank Bancomext suffered an attempted cyber theft of $110 million in January. In April and May, hackers succeeded in infiltrating five financial institutions including Grupo Financiero Banorte SAB and stole at least $15 million from lenders. “I think the election system is really vulnerable, more vulnerable than the banks,” said Israel Reyes, an international consultant in cyber security, who worked this year as a contractor for Mexico’s National Polytechnic Institute as part of a broader plan for election day commissioned by the country’s national electoral institute, known as INE. Reyes said he’s concerned that the institute is unprepared to respond to a cyber attack or systems failure. The project Reyes worked on alongside specialists from Harvard and the MIT was terminated in March by the Polytechnic Institute, which cited inadequate time to complete it.

‘Attack Map’

The most likely attack in Mexico is one that would involve multiple information requests, known as a Distributed Denial of Service attack, which would overwhelm and crash INE’s website. That’s the kind of attack that the Anaya campaign said it suffered during the presidential debate on June 12. INE is working to mitigate risks, said Jorge Torres, INE’s chief of information services, who has worked there for almost two decades. “We have personnel with lots of experience in these issues, and we also have third parties auditing.” On the wall of his office at the institute’s headquarters in Mexico City, Torres has eight screens that constantly monitor INE’s information systems, including a “Digital Attack Map” showing daily cyber attacks around the world. The only part of the electoral system connected to the Internet is INE’s main website, which itself won’t even have a vote count but will provide a list of media outlets that can provide the preliminary tally, Torres said. Other communications systems run on an internal network and are protected, he said. INE has been simulating attacks on its systems to try to detect any vulnerabilities ahead of the vote. The institute also hired Scitum, a company owned by billionaire Carlos Slim, who controls Mexico’s biggest phone company and a majority of its telecommunications infrastructure, to double-check its work. Scitum didn’t return e-mails and phone calls asking about its tests. “There can always be risks, but we look to minimize them as much as possible,” Torres said.

 

Mexico Economy Minister: NAFTA Must Remain Trilateral Accord

FROM: Voa News / Reuters / 3 de marzo de 2018

MEXICO CITY — Mexico’s Economy Minister Ildefonso Guajardo on Tuesday rejected making a bilateral trade treaty with the United States, saying the North American Free Trade Agreement, which is currently being renegotiated, must remain a three-country accord.

On Monday, U.S. Trade Representative Robert Lighthizer said time to rework the deal was running “very short” and again raised the possibility of the United States pursuing bilateral deals with its partners, while stressing that Washington would prefer a three-way agreement.

NAFTA “has to be a trilateral accord, given the conditions of integration in North America,” Guajardo said in an interview with the Televisa network on Tuesday. “It must be that way.”

Lighthizer said on Monday that Mexico’s presidential election and the looming expiry of a congressional negotiating authorization in July puts the onus on the United States, Mexico and Canada to come up with a plan soon.

The latest round of talks have been clouded, however, by U.S. President Donald Trump’s plans to launch metals tariffs. On Monday, Trump tweeted that “tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed.”

Guajardo said on Tuesday that if the U.S. government were to push ahead with metals tariffs that included Mexico, the country would be forced to respond with politically targeted tit-for-tat responses.

“There’s a list (of U.S. products) that we are analyzing internally, but we won’t make it public, we’re going to wait,” Guajardo said.

He also said that in a meeting in Washington last week, in which he met Commerce Secretary Wilbur Ross, he told the U.S. official that Mexico should not be included in the proposed tariffs.

“We’re allies in national security … our industries are highly integrated, we buy more (U.S.) steel than we sell, and so there’s no point in shooting oneself in the foot,” he said.

 

 

FROM: Voa News / Reuters / 3 de marzo de 2018

Mexico’s economy rebounds in fourth quarter as elections loom

FROM: Reuters / Michael O´Boyle / 30 de enero de 2018

 

MEXICO CITY (Reuters) – Mexico’s economy bounced back more than expected in the fourth quarter, according to preliminary data, but signs of slowing growth could feed discontent ahead of the presidential election in July.

Gross domestic product in Latin America’s second-biggest economy grew around 1.0 percent in seasonally adjusted terms in the October-December period, compared with the previous quarter, the national statistics agency said on Tuesday.

A Reuters poll had forecast an expansion of 0.6 percent. The economy rebounded after shrinking 0.3 percent in the third quarter as the country recovered from two devastating earthquakes that dented activity in the July-September period.

Higher interest rates and persistent inflation could weigh on consumer demand that helped support the Mexican economy last year amid uncertainty around U.S. President Donald Trump’s threats to pull out of a free-trade deal with Mexico.

It is still unclear if Mexico, Canada and the United States will be able to renegotiate the North American Free Trade Agreement (NAFTA), adding to concerns about the outcome of Mexico’s presidential race, which a leftist candidate leads in the polls.

“Important investment decisions may potentially be postponed, scaled down or even canceled,” Goldman Sachs economist Alberto Ramos wrote in a note to clients.

Data showed that the industrial sector edged up 0.1 percent in the fourth quarter compared with the prior quarter, crimped by a decline in oil production.

Agriculture grew 3.1 percent on a quarter-on-quarter basis while services grew 1.2 percent.

Mexico’s central bank is expected to hike interest rates again in February to contain a surge in inflation. Higher prices and more expensive loans could weigh on consumer demand, analysts said.

Mexico’s economy grew 1.8 percent in unadjusted terms compared with the same quarter a year earlier, the agency said.

For full-year 2017, the economy expanded at an unadjusted 2.1 percent rate, down from 2.9 percent in 2016. That is the lowest annual rate of expansion since 2013, President Enrique Pena Nieto’s first full year in office.

”The Mexican economy is surviving rather than thriving,” said Neil Shearing, an economist at Capital Economics.

Pena Nieto promised to boost Mexico’s anemic growth rates by passing major economic reforms, such as opening the energy sector to private investment. But an oil price slump sabotaged hopes to supercharge growth, as Pena Nieto had promised.

Slack growth could fuel support for opposition candidates in the July 1 election.

A poll on Monday showed leftist Andres Manuel Lopez Obrador consolidated support in his bid for the Mexican presidency, but the race has tightened as another opposition contender gained ground while the ruling party trailed.

 

 

FROM: Reuters / Michael O´Boyle / 30 de enero de 2018