HomeNewsBriefMexico Extortion Hits 1/3 of Foreign Businesses
BRIEF

Mexico Extortion Hits 1/3 of Foreign Businesses

EXTORTION / 29 MAY 2013 BY ELYSSA PACHICO EN

A survey by the American Chamber of Commerce of Mexico (Amcham) found that 36 percent of the businesses questioned reported being threatened with extortion last year, double the number reported in 2011, reported El Milenio

Two percent of the businesses surveyed said they were forced to relocate operations outside of Mexico, due to security concerns. (Portions of the survey results are available on Amcham’s website.) Others reported having to withdraw operations — either totally or partially — from the states most affected by criminal violence, including Nuevo Leon, Tamaulipas, Chihuahua, and Michoacan. 

Another 24 percent of those surveyed reported suffering damage to their business facilities, something that is typically associated with extortion-related attacks. 

Amcham’s findings give a sense of some of the economic costs of Mexico’s struggle with insecurity. The report stated that a third of the businesses reported losing at least $1 million to insecurity in 2012, while another four percent reported losing between $1 million to $5 million. 

The survey found that businesses typically spent four percent of their total operation costs on security. Tom Gillen, president of Amcham’s security committee, said that this is equivalent to what businesses in Latin America typically spend on security, and is lower than the seven percent spent on average by businesses in the US. 

InSight Crime Analysis

Although grim, the findings were considerably better in overall perception of insecurity than the previous year. Gillen said that 84 percent of the businesses surveyed reported feeling safer in 2012 than in 2011, even though crime in Mexico continues at roughly the same rate. Survey respondents attributed this feeling to the federal government’s and their own actions to secure their environment.

There have been few public reports of large transnational firms paying extortion fees to Mexico’s criminal groups. One high profile case last year involved the Knights Templar launching several attacks against a PepsiCo subsidiary. In a more recent case, as reported by Excelsior, a US private investment firm is currently suing another US company for failing to sufficiently warn them about the repeated attacks its business facility would have to endure from the Gulf Cartel. 

Compartir icon icon icon

What are your thoughts? Click here to send InSight Crime your comments.

We encourage readers to copy and distribute our work for non-commercial purposes, with attribution to InSight Crime in the byline and links to the original at both the top and bottom of the article. Check the Creative Commons website for more details of how to share our work, and please send us an email if you use an article.

Was this content helpful?

We want to sustain Latin America's largest organized crime database, but in order to do so, we need resources.

DONATE

Related Content

HOMICIDES / 7 FEB 2013

A new report analyzing the data behind Mexico’s drug war shows in 2012 organized crime related killings declined or leveled…

HUMAN SMUGGLING / 9 OCT 2012

Mexican authorities claim to have captured the Zetas boss behind a 2010 massacre of 72 Central American migrants…

HUMAN SMUGGLING / 1 APR 2015

Mexican authorities have captured an alleged member of the Zetas implicated in the 2010 massacre of 72 immigrants, which…

About InSight Crime

THE ORGANIZATION

We Have Updated Our Website

4 FEB 2021

Welcome to our new home page. We have revamped the site to create a better display and reader experience.

THE ORGANIZATION

InSight Crime Events – Border Crime: The Northern Triangle and Tri-Border Area

ARGENTINA / 25 JAN 2021

Through several rounds of extensive field investigations, our researchers have analyzed and mapped out the main illicit economies and criminal groups present in 39 border departments spread across the six countries of study – the Northern Triangle trio of Guatemala, Honduras, and El…

BRIEF

InSight Crime’s ‘Memo Fantasma’ Investigation Wins Simón Bolívar National Journalism Prize

COLOMBIA / 20 NOV 2020

The staff at InSight Crime was awarded the prestigious Simón Bolívar national journalism prize in Colombia for its two-year investigation into the drug trafficker known as “Memo Fantasma,” which was…

ANALYSIS

InSight Crime – From Uncovering Organized Crime to Finding What Works

COLOMBIA / 12 NOV 2020

This project began 10 years ago as an effort to address a problem: the lack of daily coverage, investigative stories and analysis of organized crime in the Americas. …

ANALYSIS

InSight Crime – Ten Years of Investigating Organized Crime in the Americas

FEATURED / 2 NOV 2020

In early 2009, Steven Dudley was in Medellín, Colombia. His assignment: speak to a jailed paramilitary leader in the Itagui prison, just south of the city. Following his interview inside…