Mexico risks losing large areas to drug gangs

MONTERREY, Mexico, (Reuters) – Mexico is struggling  to avert a collapse of law and order along its northern border  in a region that generates a quarter of its economic output,  with two states already facing the threat of criminal anarchy.

Even after four years of dramatic military sweeps, drug  cartels in Chihuahua and Tamaulipas are extending their control  over large areas and the state governments seem powerless to  stop them.

Mass jail breaks, abandoned police stations, relentless  killings and gangs openly running criminal rackets such as  gasoline stolen from pipelines are the new reality in regions  once at the forefront of Mexico’s efforts to modernize and  prosper under the North American Free Trade Agreement.

Gunmen killed as many as 18 people near Tamaulipas’ state  capital Ciudad Victoria on Sunday night, attacking a passenger  bus and shooting up government buildings, although no word of  the violence appeared in local newspapers and TV stations,  which are too afraid to report or are paid off by the cartels.

Police found the severed head of a two-month-old baby  dumped in the town of Delicias in Chihuahua earlier this month  in one of the cruelest revenge attacks to scar the state.

“The criminals are hollowing out police and local  governments’ capacity to uphold the law,” said Kevin  Casas-Zamora, an analyst at the Brookings Institution in  Washington and a former vice president of Costa Rica. “There is  an explosion of robbery, extortion and kidnapping.” Violence is well away from the white beaches that draw  millions of tourists, but Mexico risks losing control of parts  of the country to drug cartels — fears expressed by a senior  Mexican official in October 2009, according to U.S. State  Department documents made public by WikiLeaks in December.

Back then, Deputy Interior Minister Geronimo Gutierrez, who  has since left his post, said the government had 18 months to  show voters it was beating drug gangs or see President Felipe  Calderon’s army-led offensive abandoned after the next  presidential election in 2012.      The lawlessness in Tamaulipas is spreading to the  neighboring border state of Nuevo Leon, home to Mexico’s  richest city Monterrey, as the Gulf cartel’s war with the Zetas  gang spreads across the region.

Coahuila, another frontier state, is seeing a surge in  violence in one of its main cities Torreon. The calm in Baja  California, where the government boasts a fall in violence, may  not hold. The state has already seen 80 drug murders this year,  a 70 percent jump compared to the same period in 2010.

Mexico’s six border states generate one-quarter of gross  domestic product but close U.S. links are a double-edged sword  as drug traffickers fight to control the strategic region.

Extortions, one of the scourges that prompted Calderon to  go after the cartels, have become so bad in Chihuahua’s biggest  city Ciudad Juarez that many small businesses have stopped  paying their social security, and hitmen have warned government  tax collectors against trying to chase up those in arrears.

“Restaurants, bars, delicatessens, shoe shops, everyone is  paying extortion money,” said a business man with an car  dealership who has been extorted by drug gangs and declined to  be named. “And if you can’t pay both extortion fees and your  taxes, you tell the gangs and they sort it out for you.”

Mexico and the White House play down the threats posed by  the cartels but U.S. Secretary of State Hillary Clinton said  last year that Mexico faces a drug cartels insurgency and U.S.  Undersecretary of the Army Joseph Westphal was recently forced  to retract similar remarks. The drug gangs have not launched major terror attacks like  Colombian traffickers, who set off powerful car bombs in busy  streets and killed 107 people in bombing a commercial airliner  in 1989. But hitmen have killed at least 14 mayors across  Mexico over the past year, have detonated explosives in  vehicles, and on Sunday night murdered a Nuevo Leon police  chief in Monterrey.

More than 34,000 people have died in drug violence since  Calderon launched his crackdown in December 2006.

Taking no chances, Tamaulipas’ new Governor Egidio Torre, a  last-minute substitute for his brother who was killed by hitmen  while campaigning last June, is heavily guarded at all times by  soldiers. A third of the state’s 1,200 police work full-time as  bodyguards for officials and their families, said Tamaulipas’  police chief, himself an army general.

The cartels, meanwhile, continue to defy troops.

Gunmen claiming to represent the Zetas have threatened oil  contractors working at isolated natural gas fields in the  Burgos basin in Tamaulipas and Nuevo Leon. Rivals working for the Gulf cartel in the nearby cities of  Reynosa and Rio Bravo are openly selling gasoline siphoned off  from pipelines or from hijacked trucks owned by state energy  monopoly Pemex, residents and police

On a recent day in Reynosa, a young man casually smoking a  cigarette and holding a wad of peso notes sold gasoline in  plastic jugs with a 35 percent discount compared to legal gas  stations.

Last year, a man in Rio Bravo who couldn’t pay a ransom fee  to free his kidnapped eight-year-old daughter was forced to  watch as cartel hitmen chopped her into pieces in front of him,  a family member told Reuters, breaking down as he spoke.“There’s no hope here, only fear,” said the man, a local  bus driver. “These gangs have complete power over us.”