INSITUATIONGENERALMEXICO Weekly Review #120 I August 31, 2022
The president of CEEG, Alberto de la Fuente Piñeirua, commented that global companies decided to stren gthen their relationship with the states through the Mexican Association of Secretaries of Economic Deve lopment (AMSDE), as they are convinced that the foun dations for the prosperity of any country are built from the local level.
LOOK FOR SYNERGIES WITH ENTITIES
The CEEG is made up of 60 companies, which together represent 10% of the Gross Domestic Product (GDP), 40% of the total Foreign Direct Investment (FDI) co ming into the country, 11% of exports and are a source of employment for 8 million people,” he said.
2
In search of new production chains with national su ppliers, the Council of Global Companies (CEEG) star ted a project with the states to take advantage of the opportunities that Mexico has in terms of investment and develop production processes, following nearsho ring, which will begin mainly in the Bajio region.
During a meeting with the AMSDE, the companies of the Council committed to continue contributing to the country’s development with their support and global ex perience. During the working sessions, 40 representati ves of the CEEG and 22 representatives of the AMSDE participated.
“Today, unlike other countries in the region, we see an international geopolitical situation that opens a huge window of opportunity for Mexico, the time is now,” he Mexicostressed.has a great window of opportunity and global companies are looking for local suppliers, and they will start in the Bajio area, where there has been a boom in the economic development of the parent companies.
The CEEG president highlighted that two meetings have been held, one in Queretaro and the other in Zacatecas, where opportunities are opening up and companies such as Honeywell and Airbus, which manufacture air plane and helicopter components, have begun to form alliances with local suppliers.
SOURCE: El Economista
THROUGHINDUSTRYMANUFACTURINGNEARSHORING,GLOBALCOMPANIES
INTERNATIONAL
INFRASTRUCTURE • Altan Network: The president said the Altan net work does not reach the last mile, it only reaches 70% of the population. Now the network will be expanded, CFE already has a new subsidiary called “Internet for all”, which is estimated to reach 80% of service to the population. We will invest in 5,000 antennas throughout the country to expand cov erage; this will be a joint agreement with the CFE. It will continue to be a mixed company, non-profit and not in the red, which will provide the service.
• USMCA (United States, Mexico, Canada Agreement): Regarding the September visit of U.S. Sec retary of State Antony Blinken, Lopez Obrador explained that he will be well received. He com mented that the issue of the USMCA consultations will be treated as a political matter and not as a technical one. He added that it is not up to the United States to discuss Mexico’s laws and that is why President Biden was invited to dialogue on the USMCA.
3 KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference August 25 – 30, 2022
• Anthony Blinken visit: Regarding the visit of the Secretary of State, Antony Blinken, the President was unaware that he was coming to Mexico. He found out from Dolia Estevez who announced the news. Lopez Obrador commented that he is com ing to a meeting at the Ministry of Foreign Affairs for the High-Level Dialogue, between Chancellors and Secretaries only.
• AMLO (Andres Manuel Lopez Obrador) in formed that fifteen days before the meeting with his counterpart Joe Biden, Mexico held a meeting with U.S. businesspeople, 18 compa nies were present, and were the Foreign Min ister Marcelo Ebrard, the Secretary of Energy, Rocio Nahle and most of the issues were re solved, an agreement was reached to invest 25,000 million dollars. He pointed out that the consultation has a tone of arrogance, announc ing that the electric reform was the panacea, but Mexico maintains the opposite. When for eign investment did not arrive, they speculated about the concessions that were received and there were cases of gas price spikes. He reiter ated that the US Secretary of Commerce, Kath erine Tai, said that the reform was good. The President emphasized that the United States is attacking Mexico’s sovereignty and that they had also agreed to regularize Mexican migrants but have not complied.
KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S
• Quintana Roo Governor: The President announced that the Governor of Quintana Roo, Carlos Joaquin Gonzalez, will join the federal government once his term is over. He did not give further information about the position to which he will invite him.
• Telecommunications: President Lopez Obrador commented that the telecommunications con cession obtained by the government was only for places where there is no internet service provid ed by private companies. The aim is for people to have access to the internet and telephony no mat ter where they live.
• Miner rescue: The national coordinator of Civil Pro tection, Laura Velazquez, met with the specialized team to create a base solution for rescue based on the geological studies of the Federal Electricity Commission (CFE) and the National Center for Di saster Forecasting. She also stated that six mines have been identified in the vicinity of where the trapped miners are located and that to date 705 thousand cubic meters of water have been evacu ated.
• Public servers in private companies: President Lo pez Obrador highlighted that, with the Republican Austerity Law, challenged in the judiciary, he left without effect that public servants were prevent ed from working in companies. This could avoid situations such as the sale of national railroads by former President Zedillo, which he joined af ter the end of his term of office. With the entry of high-ranking officials into private companies, valuable information is lost.
• Water concessions: Given the binding results of the popular consultation regarding the elimination of water concessions to the company Aguakan in the state of Quintana Roo, the President men tioned that it is necessary to comply with the re sults of these consultations and respect the will of the people. Regarding water, the President point ed out that this right is federal, and it is not possi ble to have water that corresponds to the people. There can be a water concession but there can be a revocation of the agreement or the contract or concession.
ENVIRONMENTAL
POLITICAL AGENDA
4
• Militarization: He explained that with this incor poration, it is intended that it will last and be the institution’s par excellence to guarantee public se curity. This proposal requires a constitutional re form because until a few years ago it was estab lished that the armed forces could not participate
5 in public security tasks; subsequently, the Ministry of National Defense and the Ministry of the Navy were able to participate in maintaining security. He presented, through INEGI data, that 84.2% of the people consider the work of the Secretariat of the Navy to be effective, while 81.3% consider the Secretariat of National Defense to be effective. It also showed that 86.6% and 83.3% of the popula tion trust the Ministry of the Navy and the Ministry of National Defense, respectively.
• Cancer treatments: The Secretary of Health, Jorge Alcocer Varela, informed that on Saturday, Au gust 27, he met with 4 representatives of parents of children with cancer where they were informed that since January 6, 2022, more than 110 thou sand chemotherapy mixtures have been achieved and 70 medicines have been incorporated to face several types of cancer.
• INE censorship: The President commented that given the fines to publications on social networks by the National Electoral Institute (INE), he consid ers that this type of activity is censorship and that it will not go further, since they should initiate a process of disqualification. He expressed his opin ion that this type of action helps the institution to show the reality of its actions, as it demonstrates the need to reform INE.
HEALTH • Vaccination campaigns: Dr. Lopez Gatell informed that from September 5 to 30 a vaccination cam paign for children under 1 year old will be carried out with the hexavalent vaccine, which protects against polio and other diseases. On the other hand, he pointed out that in November a vaccina tion campaign against human papilloma will be gin, aimed at girls from 13 to 14 years of age and cis and trans women from 11 to 49 years of age liv ing with HIV. The target for this vaccination is 2.5 million people.
KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S
• Citizen Protection reform: Regarding the imple mentation of a reform to the Secretariat of Pub lic Security and Citizen Protection, the President commented that the purpose of this reform would be for this institution to deal with cases of injus tice committed due to corruption, negligence, and bureaucracy to the most unprotected people, who have been unjustly imprisoned or who have expe rienced situations of torture.
6 NEWS BY STATE
SONORA
BAJA CALIFORNIA
This week the Governor of Sonora was appointed by President Andres Manuel Lopez Obrador to coordinate the new ly created state company Lithium for Mexico that will be installed in the state of Sonora. In addition, the state gov ernment will have a share within the or ganization that will be dedicated to the exploration, exploitation, benefit, and use of lithium located in the national territory.
Last week the authorities from Mexico and the United States laid the first stone of what will be the Otay II Garita. The president of the Association of Customs Agents of Tijuana and Tecate stressed that with the new crossing, the time’s border crossings for trucks will be re duced by up to 30% to 40%, which will be beneficial for the commercial dynam ics that exist on that border. This major project would be completed in 2024.
COAHUILA Claudio Bres Garza, Secretary of Econ omy in Coahuila, assured that five major projects are yet to come for Torre on, Matamoros, and Francisco I. Madero, which must be completed before the end of this year.
NUEVOSTATELEON
The scarcity of water continues to im pact the operation of the industry in Nuevo Leon, and proof of this is that 35.2% of the companies indicated that this issue affected their growth during the last month.
7 NEWS BY
8 NEWS BY
POTOSI The construction of the operations base of the Civil Guard of San Luis Potosi began in the Industrial Zone of the capital city, according to the Secretary of Security and Citizen Protection of the entity. The land where this base will be built was donated by the Union of Users of the Industrial Zone (UUZI) and will consist of 2,500 square meters. This action is part of the Security Plan of the government of San Luis Potosi to guarantee the social tranquility, peace, and well-being of the people of San Luis Potosi. The operations base will house the Special Forces Unit, which will have dor mitories and equipment for the contin uous training of the elements. It has also been announced that it will have a C3 to improve the video surveillance system in the Industrial Zone, Pozos, and surround ing neighborhoods.
JALISCO To exchange experiences between Jalis co and Denmark to contribute to the im plementation of actions related to the decarbonization of the productive sector and reduction of energy consumption in buildings and industry; The Government of Jalisco through the Federal Liaison and International Affairs Unit (UEFAI), the Min istry of Environment and Territorial Devel opment (Semadet), the Energy Agency of the State of Jalisco (AEEJ) and the Min istry of Economic Development (Sedeco), will have meetings with different actors and Danish institutions and will visit during this week relevant sites focused on ener gy efficiency, decarbonization, and waste management in Copenhagen, Denmark. This exchange will address the work of the Danish Energy Agency as solutions and best practices in energy efficiency and en ergy management in industry and build ings; the regulatory framework and pol icies on energy efficiency, cogeneration, and biogas production; as well as strat egies for green gas, electrification of in dustry, production of green hydrogen and Power-To-X. The State of Jalisco will pres ent initiatives and instruments relevant to climate action and its link with the energy transition, such as: the state decarboniza tion route, the carbon budget for the elec tricity sector, and the Business Alliance for Climate. In addition, it seeks to establish an international cooperation agenda that includes: the management of a local car bon market, projects for the use and reval uation of waste (biomass, vinasse, excreta, loss of food waste), promotion of sustain able technology, use of alternative sources of renewable energy in communities and the private sector, all within the framework of climate commitments.
SANSTATELUIS
AGUASCALIENTESSTATE
Marco Antonio Del Prete Tercero, Secretary of Sustainable Development of the State of Queretaro, shared that according to the Council of Global Companies, there are close to 60 large international companies in Mex ico, which together represent 10 percent of the national GDP, 40 percent of Foreign Di rect Investment (FDI), 11 percent of the coun try’s exports and generate employment and family income for eight million people. Of these, 23 are in Queretaro, nine are produc ers and 14 have a commercial presence; all of them serve the aerospace, automotive, energy, human resources, financial services, food, and beverages sectors. The panel “Nearshoring and Local Supply Chains” was also held, with the participation of Patricia Perez Salazar, General Director of AP Moller, Oscar del Cueto Cuevas, CEO of KCSM, the Undersecretaries of Economic Development of Guanajuato and Zacatecas, Alejandro Hernandez, and Remberto Sandoval, and as moderator Jorge L. Torres, Vice President of FedEx Express Mexico.
As part of the work tour carried out by the Aguascalientes City Hall abroad, a meet ing was held at the Consulate General of Mexico in Chicago, Illinois, to exchange strategies, business contacts, and suc cessful experiences in favor of business and economic development.
9 NEWS BY
The munic ipal president, Leonardo Montañez, the council member Maria Guadalupe Arellano Espinosa, the council members Carlos Or tega Tiscareño and Edgar Dueñas Macias, the trustee Hector Hugo Aguilera Cordero, Arturo Gonzalez Estrada, head of the Ex ecutive Office and Aquiles Alafita Saenz, director of Cooperation, Financing, and International Affairs, promote the bilateral economic relationship and the export com petitiveness of Aguascalientes products in the American Union. Gerardo Guerrero Gomez, Deputy Consul, welcomed the del egation and thanked them for their inter est in participating in the opening of new windows of opportunity at an internation al level, especially with a great commercial partner such as this North American state, to boost sales for more businesspeople outside the Mexican Republic.
QUERETARO The Global Business Council and the Mexi can Association of Secretaries of Economic Development (AMSDE A.C.) held the forum “Encuentro AMSDE-Empresas Globales El Bajio y su Modelo de Desarrollo”.
The objective of this meeting is to detonate investment and local economic growth, from a sustainable approach. They also dis cussed issues of sustainability, local supply chains, and human capital formation, to generate proposals that contribute to the competitiveness and promotion of each re gion. With this important meeting, they are continuing the dialogue, agreements, and joint actions to continue promoting Mexi co’s economic development.
The Government of Guanajuato announced changes in different sub-secretariats. The Undersecretary of Connectivity and Mo bility of the Secretariat of Infrastructure, Connectivity, and Mobility (SICOM) will be occupied by Juan Carlos Moreno Henes trosa. The Undersecretary of Inclusion and Investment for Social Development of the Secretariat of Social and Human Develop ment (Sedeshu) will be headed by Maria de Monserrat Ramirez Fuentes. Enrique Rodrigo Sosa Campos, former treasurer of the administration of the Municipality of Leon during the second three-year term of Hector Lopez Santillana, was appoint ed to the Undersecretary of Employment and Formal Training of the Ministry of Sus tainable Economic Development (SDES). Meanwhile, as of September 16, the Under secretary of Territorial Ordering and Natu ral Resources Management of the Ministry of Environment and Territorial Ordering (Smaot) will be occupied by Karina Padilla Avila.
10 NEWS BYGUANAJUATOSTATE
• Preschool • Elementary • Secondary • High School Thus, the State of Mexico will become the first entity in the country to promote this type of strategy, which also aims to generate equal development opportuni ties for women and men.
11 NEWS BY STATE
The government of the State of Mexico, headed by Alfredo del Mazo Maza, for the 2022-2023 school year, students will be taught the subject of Gender Equality, according to a press release. Said subject will be taught in the follow ing school levels:
STATE OF MEXICO
CDMX Faced with the lack of water due to drought, aging of the hydraulic system and less recharge of aquifers, the capital’s government, the State of Mexico, and the National Water Commission (Conagua) presented the Comprehensive Drinking Water Supply Plan, which aims to in crease production from a flow of 64.5 m 3 /s to 74.4 m 3 /s by 2024 with the construction and rehabilitation, as well as the sanitation of dams. “The objective is to make the systems we currently have more efficient, recycle rainwater and wa ter from the Valley of Mexico, and at the same time recover the environmental ser vices of the basin. What we are presenting today is not something that we are going to start doing from today forward, but it is something that already has an advance, I would say, of 40% of what is presented, they are works that we have been doing,” said the head of Govern ment, Claudia Sheinbaum.
This Yucatecan company specializes in aluminum and metal structures and is located in Kanasin. With the opening of this plant, more than 600 jobs are being created. - SITEX
12
With an investment of 8 million dollars, the Chinese company inaugurated its first plant in Nuevo Leon. The opening will generate 400 direct jobs.
The Servicios Integrales (SITEX) plant was inau gurated in the municipality of Tekanto, where 150 people work. - WOODGENIX Woodgenix is of Chinese origin and will generate more than 700 jobs for the municipalities of Boko ba, Hocaba, Hoctun, Huhi, Izamal, Sanahcat, Tah mek, Tixkokob, Tixpehual. Xocchel and Seye.
ECONOMYRECOVERYECONOMICANDINVESTMENTS
IN MEXICO
CDMX - STEELEX
CENTRAL MEXICO - NESTLE Nestle invests more than 2 million pesos to moder nize its operations in Queretaro.
NORTHEAST - BUT CONSTRUCTION MACHINERY
Work regulation and labor legal framework in Mexico continues to change. Today the federal government has issued the new PROFE DET PROFEDETRegulations.isthe Federal Attorney for the Defense of Labor in Mexico, it is a decentralized body of the Ministry of Labor and So cial Welfare (STPS). PROFEDET mission is to protect the rights of workers before the labor authority, through advisory services, me diation, and legal representation.
ALVAROGARCIA HR, Vice
The new PROFEDET regulations will be valid starting Thursday, September 1st, 2022. President
NEW PROFEDET RULES IN MEXICO
13 LABOR
www.prodensa.com contact@prodensa.com