(For full coverage of the flu outbreak, click [nFLU]) * Mexico announces stimulus plan for flu-hit economy * Will temporarily lower taxes for cruise operators * Global health alert spills into dispute over pork bans * WHO urges caution, but uncertain over pandemic alert * Mexico sends plane to get citizens quarantined by China (Recasts with president's announcement of stimulus plan) By Alistair Bell and Daniel Trotta MEXICO CITY, May 4 (Reuters) - Mexico announced plans on Monday to revive its economy hit by a deadly swine flu epidemic it says has eased, but the global alert has triggered a trade dispute over bans on Mexican, U.S. and Canadian pork. In a broadcast to the nation, President Felipe Calderon said the planned stimulus package would include a temporary reduction in taxes for cruise lines that visit Mexico, in a bid to lure back shiploads of foreign visitors. The tourism sector, which accounts for 8 percent of Mexico's economy, has been badly hit by the epidemic of a new H1N1 flu virus strain, which prompted major operators like Carnival Cruise Lines <CCL.N> to cancel visits. "We are now going to concentrate on achieving the recovery of the economy as fast as possible," Calderon said, adding details of the stimulus plan would be given in coming days. "We're going to come out of this experience successfully and soon." He repeated government assurances that Mexico, epicenter of the flu outbreak that has now infected more than 1,200 people in 21 countries, was over the worst of its own epidemic. To date, 27 deaths have been confirmed -- 26 in Mexico and one in the United States. The flu's global spread has kept alive fears of a possible pandemic, although scientists say this strain does not appear more deadly than seasonal flu. IMPACT ON TOURISM, AIRLINES While the new H1N1 virus is not foodborne, fears of cross-border contagion stirred up international trade tensions after about 20 nations banned imports of pigs, pork and other meat from the United States, Canada and Mexico, the three most flu-affected countries. [nN04402062] Canada threatened to take China to the World Trade Organization unless Beijing backs down from its ban on imports of pigs and pork from the province of Alberta, where a herd of pigs was found to have the H1N1 strain. [nOTW000343] Health experts, citing precedents such as the 1918 Spanish Flu pandemic that killed millions of people, warn the latest epidemic could attack more violently a few months from now. In a brewing diplomatic dispute between Mexico and China over the treatment of Mexican citizens caught up in the flu alert, Mexico sent a plane to retrieve dozens of its nationals quarantined by Chinese authorities. Mexico accused Beijing of discrimination against Mexicans, but China's Foreign Ministry rejected the criticism. Calderon condemned the quarantine measures against Mexican citizens overseas as "discriminatory." In Mexico, Health Minister Jose Angel Cordova said the government would lift the precautionary five-day shutdown it had imposed on public and business activities on May 1. "(We will) resume, as planned, activities in the public and private sector on May 6 with recommendations on matters of health and hygiene at the work place," Cordova said. Mexican schools would remain closed until May 11 and only reopen after cleaning and amid tight health screening. An International Labor Organization official, Jean Maninat, said the flu epidemic would hurt employment in Latin America, hitting tourism and airline sectors the hardest. [nN04423394] Carnival Cruise Lines said earlier on Monday it had canceled all Mexico port visits for 16 of its ships through June 15 due to the flu alert. [nNO4427063] European finance ministers said they saw no evidence the H1N1 flu was hurting Europe's economy. [nL4182500] While U.S. hog futures fell on Monday over the flu alert, Mexico's peso made its biggest gains in more than six months and stocks jumped as health fears eased. [nN04422519] NO PANDEMIC ALERT YET With infections of the new flu strain cropping up across the globe, the World Health Organization wavered over whether it might declare a full pandemic alert. WHO chief Margaret Chan said the apparent good news from Mexico over the epidemic had to be treated with caution. Before issuing a level 6 pandemic alert, WHO would need to see the virus spreading within communities in Europe or Asia. "We are not there yet," Chan told a U.N. General Assembly session. "No one can say right now how the pandemic will evolve or indeed whether we are going into a pandemic." In the United States, the second-biggest focus of infection after Mexico, the new virus has now infected 286 people in 36 states, the Centers for Disease Control and Prevention said. "We are seeing over 700 probable cases in a total of 44 states," said the CDC's acting director, Richard Besser. So far 99 percent of probable cases have, upon further testing, turned out to be the new H1N1 strain, he added. [nN04415844] Many Mexicans, chafing after days of isolation at home, are desperate to get back to work after a period of inactivity that has hit family incomes at a time of global recession. "It's going to be a disaster if this carries on," said Martin Velasquez, 28, a construction worker. (Additional reporting by Pascal Fletcher, Robert Campbell,Daniel Trotta, Louise Egan and Michael O'Boyle in Mexico City; Laura MacInnis in Geneva, Patrick Worsnip in New York, Maggie Fox and Andrew Quinn in Washington, Jerry Bieszk and Michael Hirtzer in Chicago; Writing by Pascal Fletcher; Editing by John O'Callaghan)
Mexican President Felipe Calderon addresses the nation via television in Mexico City May 4, 2009. Mexico will temporarily reduce taxes on cruise lines that visit the country as part of a ...
