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MEXICO CITY — Mexican officials said they have arrested a drug dealer who controlled smuggling routes and ran a campaign of murder and intimidation for the Knights Templar drug cartel.

The Defense Department said Juan Gabriel Orozco Favela was in charge of smuggling drugs through the Michoacan state capital of Morelia for the quasi-religious gang, which is known as a major trafficker of methamphetamine.

Officials said Mr. Orozco Favela was responsible for the deaths of 21 people who were tortured and hanged or drowned and dumped around the outskirts of Morelia in June.

The military said Mr. Orozco Favela was arrested Sunday, the day of statewide elections in Michoacan.

INDIA

India, Pakistan agree to normalize trade ties

NEW DELHI — India and Pakistan agreed Tuesday to normalize two-way trade, signifying a gradual thaw in relations between the two bitter rivals.

At the end of two days of bilateral trade talks, Pakistan agreed to give its neighbor by early next year a small list of items that India cannot trade in with Pakistan.

Both sides hope to do away with the list by the end of 2012, freeing up all trade between the two countries, Indian Commerce Secretary Rahul Khullar told reporters.

“The move to full normalization of trade relations shall be sequenced,” the two nations said in a joint statement at the end of the talks.

Two weeks ago, Pakistan’s Cabinet approved a decision to give India most-favored-nation status. India gave Pakistan the status in 1996 and since had pressed Islamabad to reciprocate.

CHINA

Group proceeding with homegrown peace prize

BEIJING — The sponsors of a would-be Chinese alternative to the Nobel Peace Prize said Tuesday that they would defy a government order not to award this year’s prize, which is to be given to Russian Prime Minister Vladimir Putin.

Qiao Damo, head of the China International Peace Research Center, said the group plans to proceed with a Dec. 9 ceremony to award the Confucius Peace Prize.

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