U.S., Mexico move to stem cross-border gun traffic

SAN ANTONIO, Texas (Reuters) - U.S. and Mexican officials signed an agreement on Thursday meant to help stem the illegal flow of U.S.-made guns and ammunition that has allowed Mexican drug gangs to kill their rivals in record numbers.

The letter of intent signed in San Antonio would see U.S. federal agencies share firearms trafficking information with the attorney general of Mexico, with the aim of tracing illegal weapons and prosecuting arms smugglers.

The announcement came on the heels of U.S. President Barack Obama's meetings this month with Mexican President Felipe Calderon and Canadian Prime Minister Stephen Harper in Guadalajara, Mexico.

A central focus of the talks was the fight against Mexican gangs dominating the drug trade over the 2,000-mile border, often with U.S.-made weapons.

"The flow of illegal weapons and cash and ammunition is a threat to both countries," said Homeland Security Secretary Janet Napolitano, who signed the agreement along with Mexican Attorney General Eduardo Medina-Mora.

Illegal firearms trafficking "fuels the strength of the organized crime organization in Mexico, and they in turn are feeding contraband, narcotics, drugs, back into the United States," Napolitano said.

This year, U.S. authorities have seized $69 million in cash, 2.4 million pounds of illegal drugs, 95,000 rounds of ammunition and 500 assault rifles and handguns at the border, Napolitano said.

Washington is worried about Mexican drug gangs killing rivals in record numbers, despite Calderon's three-year army assault on the cartels.

But Mexico says U.S. equipment and training being given under a $1.4 billion "Merida Initiative" package are taking too long to arrive, partly due to concerns in the U.S. Congress over Mexico's human rights record.

The agreement will help U.S. and Mexican authorities "go after these cartels," Napolitano said, referring to Mexico's Gulf/Los Zetas drug cartel and others that dominate the drug trade. Napolitano did not say when she expected both countries to begin sharing information on illegal firearms.

U.S. authorities say Mexican drug gangs, like Los Zetas, who act as enforcers for the Gulf Cartel, now possess a sophisticated, high-powered arsenal that gives them the firepower to take on the Mexican army.

According to ATF gun-tracing data, 90 percent of the traceable weapons used in Mexican drug violence originated in the United States with Texas, Arizona and California the largest suppliers.

Last month was the deadliest month of Calderon's nearly three-year army assault on powerful cartels across Mexico with 850 deaths, according to media tallies.

The death rate so far this year stands at around 4,000, about a third higher than in the same period in 2008 despite a brief lull earlier in the year.

(Writing by Chris Baltimore; Editing by Phil Stewart)