INSITUATIONGENERALMEXICO Weekly Review #123 I September 21, 2022
2
“Mexico and the United States recognize that they are stronger when they address challenges and seize oppor tunities together to make North America more resilient, competitive, diverse, and secure,” the two countries said in a joint statement on September 12, following the con clusion of the Second Annual Meeting of the High-Level Economic Dialogue (HLED).
In the sectors in which it is more integrated with Mexico and Canada, the United States has had a smaller loss of competitiveness in the share of its exports worldwide.
In another sector with regional productive integration, medical instruments, and devices, North American countries reduced their share from 33% in 2002 to 27.1% in 2021, according to data from the World Trade Orga nization (WTO).
Even the combined share of the three North American countries in world exports of tractors (including trac tor-trailers) increased from 20.7% in 2002 to 22.9% in Showing2021.
TOUSMCAINDUSTRYMANUFACTURINGINTEGRATIONALLOWSTHEUSBEMORECOMPETITIVEWITHCHINA
After 15 years of arduous negotiations, China became the 143rd member of the WTO on December 11, 2001, which helped it become the world’s largest exporter of goods from 2009 to date.
some resilience, in that same comparison, the share of the three nations (members of the USMCA tra de agreement, effective 2020) in global automotive ex ports declined from 19.5 to 17.4 percent, while their co verage in sales of motor vehicles for transporting goods showed a reduction from 38.6 to 34.2 percent.
“Mexico, by joining the agreement (North American Free Trade Agreement, predecessor of the USMCA) helped the United States defend itself from Chinese competition, which had begun with China’s incorporation into the WTO,” said Ildefonso Guajardo, former Secretary of Economy and now a federal congressman.
Source: El Economista
on Tuesday announced an agreement un der which the car rental company will order electric ve hicles from Chevrolet, Buick, GMC, Cadillac, and Bright Drop through 2027. Hertz expects to receive Chevrolet Bolt EVs and Bolt EUVs in early 2023.
maker’s work “with Hertz is a major step forward for emissions reduction and electric vehicle adoption that will help create thousands of new electric vehicle custo mers for GM.”
In April, Hertz said it would buy 65,000 electric vehi cles over five years from Swedish manufacturer Poles tar. In October 2021, Hertz showed its intention to buy 100,000 electric cars from Tesla, primarily the Model 3.
3
175,000 ELECTRIC VEHICLES FROM GM BY 2027
Car rental company Hertz Global Holdings plans to order 175,000 electric vehicles from General Motors over the next five years, a new move to incorporate zero-emis sion Hertzmodels.andGM
GM CEO Mary Barra said in a statement that the auto
Source: Forbes Mexico
Hertz’s current goal is for a quarter of its fleet to be elec tric by the end of 2024.
HERTZINDUSTRYMANUFACTURINGPLANSTOORDER
4
Morning Press Conference 14-20,
• Reform of the Judicial Branch: When asked about the initiative presented by a member of the More na bench in the Chamber of Deputies to limit the powers of the Supreme Court of Justice, the Presi dent affirmed that the executive branch is not pro moting any reform in the issue, it is an issue that has been promoted from the legislative branch. Faced with a question about whether it has his backing, the President affirmed that these are de cisions made by the legislators in complete free dom.
KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S
POLITICAL AGENDA
2022
September
• Autonomous Organizations: The President was in formed that the National Institute of Transparency, Access to Information and Protection of Personal Data (INAI) is irregularly handling personal data to censor journalists and the media. The President informed that the country continues to suffer from this scaffolding of autonomous agencies. Howev er, he mentioned that they should not be eliminat ed, but that it is necessary to guarantee that they fulfill their function and do not become repressive bodies that favor private interests. He added that constitutional reforms should be thought of to consolidate the transformation.
• PEMEX; The President was asked about the works associated with the construction of the Dos Bocas Refinery, which has had an additional cost of 1.8 billion dollars, which represents 200% more than the programmed expenditure. The President stat ed that the former leaders are upset. The Dos Bo cas Refinery allows the generation of raw mate rial internally, to avoid energy crises as in Europe and to reduce the cost of gasoline, so it should be accepted that Mexico has not had a new refinery since 1980.
• National Guard: The President showed his support for the approval, in the Chamber of Deputies, of the constitutional reform promoted by the PRI that extends the work of the armed forces in public se curity tasks until 2028. He denied that the mea sure is to militarize or repress the country, nor to establish a dictatorial regime. He reaffirmed that the armed forces are necessary to guarantee secu rity and that they do not violate Human Rights as in previous governments. He invited the senators to follow the example of the Chamber of Deputies and vote in favor of the reform. He reproached the governors who request armed forces bodies for security tasks in their states, but who oppose the reforms.
5
KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S
• Debt restructuring: The President stated that he is working with the Ministry of Finance to restructure the debt by 2025 in order not to inherit problems to his successor and leave a solid economy.
train, and the support for the Yaqui towns, which represents an investment of 30 billion dollars in addition to the Sonora Special Plan to link electric ity, lithium, batteries and the automotive industry, which will be executed with public and private in vestment.
• Security Report: The Secretary of Security and Citizen Protection, Rosa Icela Rodriguez reported on the coordination actions of the Executive Sec retariat of the Public Security System. She empha sized that the advances are a collective achieve ment with the collaboration of the population from actions that combat the causes and criminal organizations. There is a generalized reduction of 23.3% of the criminal incidence. Intentional homi cide decreased by 8.4% as of January 2021. Likewise, he reported a reduction in other crimes such as vehicle theft by 40.4%, and kidnappings. Re garding hydrocarbon theft, he commented that it has dropped to 5.8 thousand barrels per day, which
• COVID-19: The Undersecretary of Prevention and Health Promotion, Hugo Lopez-Gatell, informed that there has been a continuous reduction in the epidemic for the last 10 weeks. Significant down ward rates, minimal mortality, and days with no COVID deaths have been reported. 1 million 800 thousand doses of vaccine will be received this week, with one last shipment remaining to meet a total of 10 million doses.
ECONOMY
• Investments in Sonora: The head of the Federal Executive was questioned about the management of the Governor of Sonora, Alfonso Durazo. Lopez Obrador highlighted the works that have been built in the State and the investment that has been des tined for the entity. He referred to the solar plant in Peñasco, works in Guaymas, the passage of the
HEALTH
SECURITY
• Earthquake September 19: The National Coordi nator of Civil Protection Laura Velazquez Alzua, reported on the 7.7 earthquake with an epicenter reported in Michoacan. She added that 692 after shocks have been detected, with the highest mag nitude being 5.8 at 3:00 a.m. on Tuesday, Septem ber 20. She highlighted the coordination between federal entities, SEDENA, SEMAR, and the Nation al Guard in the states of Colima and Michoacan which are the most affected.
KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S
• Visit of the President of Germany: President Lopez Obrador informed that they will receive the Pres ident of Germany Frank-Walter Steinmeier. They will hold a meeting with German businesspeople on economic and commercial relations between both countries, this being the most relevant point of the bilateral meeting beyond expressing a posi tion regarding the Russia-Ukraine conflict. He stat ed that he does not agree with the invasion, nor with sanctions or the sending of weapons; Mexico is in favor of peace and it is indispensable to favor dialogue to achieve peace.
represents 91.1% less than at the beginning of this government. He informed that yesterday after noon a Decree was published extending the dead line to regularize “chocolate” cars until December 31. General Luis Rodriguez Bucio, commander of the National Guard, referred to the construction of National Guard facilities and training of elements. Secretary of National Defense Luis Cresencio San doval unveiled the actions deployed by elements of the armed forces and reported on the people detained as part of the National Public Security Strategy.
o Rosa Icela Rodriguez, Secretary of Security, re ported on the pre-release of 2,685 people who re mained incarcerated in penitentiary centers. She recalled that this is being done in response to the presidential mandate to review cases that are can didates to be participants in this justice program.
o Regarding the first instance acquittal of Jose Luis Abarca in the issue of the forced disappearance of the 43 normalistas of Ayotzinapa, he indicated that the Judge’s resolution will be challenged and for that reason, he will not recover his freedom and a complaint will be filed before the Judiciary Council against the Judge. He indicated that there are 4 arrest warrants against military elements.
• Positioning in the Russia - Ukraine conflict by Mex ico: In relation to a question about the statements this weekend by one of the members of Ukrainian President Zelensky’s team, in which he rejected the peace proposal suggested by the Mexican President, the latter argued that it is convenient to wait, that he has always been accused of his sym pathy towards Russia, even during the campaign to the 2018 presidential elections.
• Public Security: Ricardo Mejia, Undersecretary of Public Security, presented the Zero Impunity re port from September 8 to 14 where it was report ed that 8 thousand 22 people were brought be fore the Public Prosecutor’s Office, among which 4 were extradited to the United States. Operators of huachicol groups were arrested. He also pre sented how real estate is stolen, with the collu sion between criminal organizations and notaries in different states of the republic.
INTERNATIONAL
6
INFRASTRUCTURE
• United Nations: The President maintained that the UN is a bureaucratic institution that does not ad dress corruption and the concentration of power in the world or the distribution of vaccines. He de clined the invitation to participate in the high-level segment of the UN General Assembly in New York attended by heads of state. He celebrated that the CNDH will not file an action of unconstitutionali ty against the reform to the National Guard and that it is a different position from the UN and the organizations that remained silent in the face of corruption and the violation of Human Rights.
• Progress in infrastructure works: videos were shown on the following infrastructure works:
o Santa Maria Dam: average progress of 61.5%; work continues on the interior concrete lining and the curtain, work is being done on placing the ma terial.
• Mayan Train: President Lopez Obrador reiterated that no cenotes or subway rivers will be damaged in the construction of the Mayan Train. He clari fied that in Section 5, there is still no construction work, and only the breach was opened; archaeo logical and geological studies are still being done. In addition, he said that where there are subway rivers and cenotes, detours, bridges, and viaducts will be made.
• He referred that Foreign Minister Marcelo Ebrard will soon present the plan at the UN General As sembly and hopes to have the support of most nations “because it is a plan that suits everyone.”
• Mexico-US Relationship: President Lopez Obra dor pointed out that the binational relationship is one of cooperation and respect for sovereignty, it is the opponents who have managed to escalate the energy issue to a Diplomatic level. He empha sized that this is not a technical matter, it is polit ical because there is no basis for it, and insisted that a foreign country will not be allowed to inter fere in matters that only correspond to Mexicans. He denied that there is any interest from Presi dent Joe Biden and reiterated the willingness to dialogue and cooperation, so revealed the Secre tary of State, Anthony Blinken, who brought the message of maintaining equality and respect for sovereignty.
KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S
7
o Mayan Train: work began on the section 1 station in Palenque. In section 2, the viaduct over Hamp olol in Campeche is under construction. In section 3, at Uman, concrete and steel reinforcement con tinue for the construction of the viaduct. In section 4, work is intensifying with night shifts, and work is being done on a bridge in Valladolid.
The president of “Index Zona Costa BC” commented that resolving the lack of la bor in the maquiladora industry is one of the priorities in Baja California. He men tioned that they have been working with state government authorities to support as far as possible industry collaborators and potential employees in the region. Additionally, he indicated that contact has been made with the National Migra tion Institute (INM) so that migrants who arrive in Baja California can obtain their documentation faster and can be hired.
BAJA CALIFORNIA
SONORA
8
A generation of around 2,400 direct and indirect jobs is projected during the construction stage of the Industrial Park that will be next to the Ciudad Obregon International Airport (AICO) and will be located south of the city, reported the Secretary of Economic Development in Cajeme. He explained that one of the spaces will be located next to the Obre gon airport and companies that require special needs will be able to operate, and in the south of the city, the possibil ity will be open for anyone who wants to install their operations.
NEWS BY STATE
9 NEWS BY
With an investment of US$65 million and the generation of more than 500 new jobs, HL Klemove confirmed that it will build a new plant in Arteaga, Coahuila. This corporation’s operations in Mexico will support its major customers: Hyun dai Motors and Kia, which are located in North America.
For his part, the governor of Coahuila, Miguel Angel Riquelme Solis, assured that Korea is the fourth country with the largest amount of investment in the state and that 14 new projects have been announced in this period with an investment of 213 million dollars.
TAMAULIPAS
NUEVOSTATELEON
At the conclusion of his tour of the Unit ed States, the governor of Nuevo Leon, Samuel Garcia Sepulveda announced that soon the e-commerce company Amazon will open a new facility in the municipality of Guadalupe, in addition to the one located in Apodaca. Also, in April, Amazon installed its first Recruit ment Center in the country in the mu nicipality of Apodaca.
The Chairman of the Social Responsi bility Committee of Index Nacional, En rique Castro, presented certificates of accreditation to the first hybrid gener ation of people with motor and hearing disabilities at the Training and Business Talent Center in Reynosa, Tamaulipas.
In his speech, the president of the com pany HL Klemove, Yoo Ho Kim, explained that the specialty is personalized auton omous driving and mobility, and this new manufacturing complex is scheduled for July 2023; so they will be manufacturing electric car parts, front camera, radar and DCU chassis for these automotive companies, as well as OMD.
COAHUILA
Bosch Rexroth will install a new plant in the state, where it will develop mobile ap plications for the production and imple mentation of systems for the automation of the manufacturing industry. This project is the 16th installation of the company in Mexico, confirmed the president of Bosch Mexico, Rene Schlegel, during the invest ment announcement. This new production center will start operations next year, on an area of 40,000 square meters in the Cantera Industrial Park, in Pedro Escobe do. With this investment, Bosch becomes one of the first companies to install a cap ital goods manufacturing project in Mexi co, which seeks to support the transition to Industry 4.0 and automation process es. In this context, the company celebrates 67 years of having arrived in the country, where it has gradually incorporated its business units: mobility, industrial technol ogy, energy, and consumer goods, all with a presence in Mexico. “(The investment) expands our role in Mexico for key techno logical fields, for the present and future of the North American continent. This is the second plant in the state, the only state in Mexico where we will have two completely different businesses,” he said.
SAN LUIS POTOSI
QUERETAROSTATE
San Luis Potosi will be the state where Daikin will build its new eleven-hectare manufacturing plant, which is estimated to be worth US$300 million and gener
ate around 2,500 jobs for this new space that will start operations in 2024. The in vestment announcement ceremony was attended by the Secretary of Economic Development of the Government of the State of San Luis Potosi, Juan Carlos Val ladares Eichelmann, as well as the exec utives, Shigeki Hagiwara, Senior Associ ate Officer, Latin America Representative, Daikin Industries, LTD and Andres Bena vides, General Director of Daikin Manu facturing Mexico. Daikin’s investment in San Luis Potosi is part of the company’s growth strategy in response to the grow ing demand for products in Latin America and North America. “Regional production, innovation, Japanese quality, and also the strengthening of links with society in the countries where we have a presence, will make Daikin the leader in the HVAC indus try in Latin America and North America,” said Shigeki Hagiwara, while Andres Bena vides added that this new factory will pro duce residential and commercial products, both with innovative and sustainable tech nologies. The Secretary of Economic De velopment of the State Government, Juan Carlos Valladares Eichelmann, empha sized that “this new investment by Daikin sets an important precedent to achieve the goal set by Governor Ricardo Gallardo Cardona to position San Luis Potosi as the best state to invest in Mexico; at the same time, promote the expansion and growth of companies currently located in Potosi territory”.
10 NEWS BY
Spanish fiscal coordination model and we will meet with the Mayor of Madrid, Jose Luis Martinez-Almeida, to strengthen ties with this important European metropolis”, states the official letter sent by the Presi dent to inform of his absence to Congress. “Subsequently, on September 22, we will visit the city of Rome, Italy, to attend an important meeting with FAO and another with IFAD to address the agenda of wom en in the field and food security. We will also have a broad agenda of meetings with the Embassy of Mexico on economic pro motion and the presentation of the ma riachi gala organized by CANACO in this city. Finally, we will sign a work agreement with the papal foundation Scholas Ocur rentes on peacebuilding to join the great work that Pope Francis has done from this platform,” the document adds. Likewise, on September 24, he will attend the in vitation of the Government of Cigales, in Spain, to celebrate the 30th ANNIVERSA RY of the twinning of Guadalajara with this city, where Fray Antonio Alcalde was born.
To continue promoting the growth and de velopment of Jalisco, as well as to take ad vantage of the opportunities presented by international relations and markets in the current global situation, the Governor of Jalisco, Enrique Alfaro Ramirez, will lead a working tour of Spain and Italy. Thus, from September 19 to 24, 2022, the gover nor will have a work agenda that will help strengthen the economic, tourism, agrifood, entertainment, and social assistance sectors and the bilateral agenda, especial ly with Spain by the success of the Guada lajara-Madrid flight inaugurated in Decem ber 2021. “I would like to inform you that I will be on an official working tour that will begin on September 19 in the city of Madrid, Spain, to attend to an agenda of tourism promotion, investment attraction, especially with the audiovisual production industry, consolidation of designations of origin and opening of new markets. We will also hold a working meeting with the Min istry of Territorial Policy to learn about the
11 NEWS BY
JALISCOSTATE
In Guanajuato, the automotive industry is the fourth sector that pays its workers the best, according to data from the Secretary of Eco nomic and Sustainable Development of the State (SDES). The state agency released the highest salaries in Guanajuato during 2019, based on Inegi’s economic censuses. Ac cording to this information, the automotive sector offers a salary of 15 thousand pesos per month on average to workers, that is, 181 thousand pesos per year. In contrast, the pe troleum and coal products manufacturing in dustry offer the best salaries in Guanajuato, up to 77 thousand pesos per month and 926 thousand pesos per year. Therefore, the dif ference in income between this industry and the automotive sector is 62 thousand pesos per month. In Guanajuato, the chemical in dustry is in second place, with an average of 244 thousand pesos per year and 20 thou sand pesos per month. In third place is the basic metal industry with a salary of 190 thou sand pesos per year and 15 thousand pesos per month, salaries like those offered by the automotive sector. According to the Month ly Survey of the Manufacturing Industry, as of June 2022, the automotive sector had 76 thousand workers in Guanajuato, two thou sand more than in the same month last year.
Governor Martin Orozco Sandoval an nounced that during his six-year term, an unprecedented investment of 100 million pesos has been made to equip the industri al parks of the Industrial Development Trust of Aguascalientes (FDIA) to guarantee in vestors modern and state-of-the-art facili ties. The Governor´s statements were made during the delivery of equipment works at the San Francisco Industrial Park, where he highlighted that in the new industrial parks that are part of the FDIA, in terms of se curity, 118 video surveillance cameras were installed that are connected to C5-SITEC, eight entrance booths were built and sur veillance towers were installed. He added that in terms of the sustainable use of water, water equipment was provided with the pur ple line for the reuse of the vital liquid, while in infrastructure, streets and avenues were repaved with hydraulic concrete, sidewalks were created, and public lighting was mod ernized. Finally, Orozco Sandoval indicated that these works contribute to maintaining the conditions of peace and social security in the state, as they will last for at least 20 more years, and the care of all the workers of the companies is guaranteed. Edgar Avila Jaime, general director of the Aguascalien tes Industrial Development Trust, pointed out that these actions, which have been carried out throughout this six-year term, generate economic development with the attraction of local, national, and international invest ments. Finally, Manuel Alejandro Gonzalez Martinez, Secretary of Economic Develop
GUANAJUATO
12 NEWS BY
AGUASCALIENTESSTATE
ment, explained that the economic growth of Aguascalientes is due to the contribution of each company that arrives in the state, as well as the conditions that the government fosters to benefit and raise the quality of life of the state’s inhabitants.
NEWS
13
BY STATE
STATE OF MEXICO
With 115 confirmed cases of monkeypox, the State of Mexico is in third place in terms of contagion, according to figures from the Federal Health Secretariat. Ac cording to the Weekly Technical Report on Epidemiological Surveillance of this disease, since the first case of contagion and up to September 19, Mexico reported 1,367 confirmed cases in 30 states. The federal agency highlighted that during this period, a total of 2,547 people were identified as meeting the operational definition of probable cases; of these, 1,367 are confirmed, 275 are under study, and 905 have been ruled out.
The Government of Mexico City reported that as of 8:00 p.m., 21 properties have been reported with damages, of which only four are at medium risk and the re maining 17 are at low risk after the 7.7-de gree earthquake reported.
CDMX
IN MEXICO
Daikin, the multinational company in the heating, ventilation, and air conditioning (HVAC) industry, announced an investment of 300 million dollars to install its second production plant in Mexico, which will open in 2024.
Company executives were received in Durango, where they will invest US$50 million in the cons truction of an operations plant for the automotive electric sector.
Thyssenkrupp Material Services de Mexico announ ced an investment of 740 million pesos in San Luis Potosi to meet the needs of the automotive industry.
FERRERO
Bosch announces the construction of a manufactu ring plant for mobile applications and automation in Queretaro.
BOSCH
SOLAREVER
The company announced a new investment to increase production at its plant in San Jose Iturbide, Guanajuato.
Solarever de America SA de CV confirmed that it will invest US$1 billion in the creation of a 100,000 square meter industrial park in Zacoalco de Torres, Jalisco.
DAIKIN
LS E-MOBILITY SOLUTIONS
14
ECONOMYRECOVERYECONOMICANDINVESTMENTS
NORTHEAST
CENTRAL MEXICO
THYSSENKRUPP MATERIAL SERVICES
If approved by the labor and social security comite the Bill will then be scheduled to be voted by both chambers of the Mexican con gress, first by all senators and then by the lower house.
HR, Vice President
POTENTIAL INCREASE TO STATUTORY PAID VACATIONS IN MEXICO
LABOR
15
Source: Chamber of Senators
ALVAROGARCIA
The Labor and Social Security Commission of the Senate has pre pared a legislative bill to increase paid vacation days in Mexico
Thevoted.newproposed table is:
Previously this year the Chamber of Deputies rejected a similar bill. This will be the second time a proposal to increase vacations will be
www.prodensa.com contact@prodensa.com