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Mexico Out To Capture LA! (Port Business That Is)

Mexico's economy is struggling even more than ours, as 40 percent of the country's GDP is based on oil, and prices are plummeting (I saw gas in LA this week for only $2.25! Ay carumba!).

The economy also depends on money sent south from Mexican workers in the US, and those remittances are down. Drug wars are hurting tourism.

In the middle of this, the Mexican government is starting to take bids on a massive, privately funded project to build a huge port on its Pacific Coast. The port hopes to compete directly with the continent's largest port complex in Los Angeles, providing another entry point for goods from China.

These goods conceivably could be shipped to the Eastern US for less than it costs to transport them from California. But the port folks in LA don't seem especially threatened. They'll believe it when they see it.

    • Value in Mexico

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  • Based in Los Angeles, Jane Wells is a CNBC business news reporter and also writes the Funny Business blog for CNBC.com.

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