The Associated Press April 20, 2010, 4:33PM ET

US ambassador: violence may hit Mexico investment

The U.S. ambassador to Mexico says drug violence is affecting the willingness of foreign companies to invest in the country.

Carlos Pascual says the violence is "perhaps the biggest threat to our shared economic success."

He says that "unchecked, violence and instability could cause corporations to rethink their business strategy of locating in Mexico."

The ambassador spoke Tuesday at a meeting of the American Chamber of Commerce in the northern city of Monterrey.

Few foreigners have died in the cartel turf battles that have killed more than 22,700 people in Mexico since late 2006. But Pascual noted that drug cartels have expanded into extortion, robbery and kidnapping, increasing concerns for businesspeople.

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