COVID-19 SITUATION IN MEXICO WEEKLY REVIEW #39

COVID-19 SITUATION IN MEXICO Weekly Review # 39 January 26, 2021

COVID-19 Situation in Mexico

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DISTRIBUTION OF DEATHS PER STATE: CONFIRMED CASES: 1,771,740

NEW CASES REPORTED: 8,521

DEATHS: 150,273

ACCUMULATED DEATHS PER DAY

Information updated on January 25, 2021 at 19:00 hrs local time.

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INCREASE OF CONFIRMED CASES SINCE THE FIRST REPORT MAP WITH THE DISTRIBUTION OF THE INCIDENCE RATE OF ACCUMULATED CASES OF COVID-19 BY ENTITY OF RESIDENCE.

0 to 500 (1 states) 501 to 1,000 (11 states) 1,001 to 1,500 (11 states) 1,5001 to 2,000 (7 states) >2,000 (2 states)

National rate 1,373.74

Elaborated by Prodensa with information from the Health Ministry of Mexico

CORONAVIRUS IN THE WORLD (COVID-19) • As of January 25, 2021, globally there have been reported 98,794,942 confirmed cases (514,098 new cases) of COVID-19 and y 2,124,193 deaths (11,434 new deaths*). Lethal rate: 2.2%.

• In the last 14 days, the number of new cases accounts for 8% (8,262,026) of the total of accumulated cases. *https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200323-sitrep-63-covid-19.pdf?sfvrsn=d97cb6dd_2

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TOWARDS THE “NEW NORMAL” INCIDENTS OF CONTAGIONS IN THE POPULATION

BY REGION AS OF JANUARY 25

DEATH INCIDENTS IN POPULATION

BY REGION AS OF JANUARY 25

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TOWARDS THE “NEW NORMAL”

The traffic light will be as follows: Alert Level

Activities allowed to operate

Maximum risk

• Only essential activities.

• Vulnerable personnel must work from home.

High risk

• Full operation of essential activities and reduced operation in non-essential activities.

Presence of workforce to a 30% in non-essential activities.

Medium risk

Low risk: Continuation of daily activities

General criteria • Promote work from home, as much as possible.

• Allow a distance of 1.5 meters between people and/or provide Personal Protective Equipment (PPE) accordingly.

• Place physical barriers in workstations, eating areas, etc.

• Increase the frequency of transportation and alternate seats for safe distance.

• Establish alternate and flexible schedules and shifts to reduce contact.

• Implement filters at entries and exits.

• Full economic activity.

• Restricted activities in public spaces.

• Presence of all personnel at the workplace.

• Implementation of health protection measures.

• Provide permanent attention to the vulnerable population

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KEY POINTS OF THE PRESIDENT ANDRES MANUEL LOPEZ OBRADOR Morning press conference January 20-26, 2020

LETTER TO BIDEN In the document sent in 2012, when Joe Biden served as Vice President, President Lopez Obrador requested a substantial change in the bilateral relationship between both governments. He stressed the importance of carrying out a more effective and humane policy, based on cooperation and development, rather than one based on police and military cooperation. He highlighted that, in that year, Mexico received 478 million of support, of which 450 were allocated to the Merida initiative. The letter also raised the need for more resources to change priorities and thus benefit development and employment. He expressed that “it is not with military and intelligence assistance, or with shipments of helicopters and weapons, that the problem of insecurity and violence in our country will be remedied.” President Lopez Obrador reported that he is awaiting President Biden’s immigration reform proposal, following his campaign commitments.

VACCINE DISTRIBUTION AND COVID-19 VACCINATION PLAN The President announced that the vaccination campaign for teachers in Campeche will start as of January 23. He instructed the Secretary of Health so that, as of January 22, a statement was issued so that any company or local government that wants to acquire vaccines to apply them in Mexico has authorization. The only requirement is to attach to the application, the vaccine acquisition contract, including the number of doses and the supplier pharmaceutical (which must be authorized). This applies to both the public and private sectors. In

any case, the companies that use this authorization must inform about the vaccinated personnel to avoid duplication in the injection of doses.

PRESIDENT’S HEALTH STATUS Olga Sanchez Cordero, Secretary of the Interior, indicated that President Lopez Obrador will remain working at a distance, despite being infected with COVID-19, since he is well and stable, and reported that Jorge Alcocer, Secretary of Health, is in charge of the medical team that treats him. He will answer the call scheduled for this week with the President of Russia, Vladimir Putin.

BANXICO REFORM The President commented that it is an issue that is being addressed in the Senate. His opinion is that an agreement can be reached to guarantee the Bank of Mexico’s autonomy because it is in the best interest of the country. He requested the search for a mechanism that can allow people to change their dollars, respecting the laws and anti-money laundering measures. He requested not to generate conflicts with International Financial Organizations that can put on risk the country’s financial stability.

The President commented that during the last week, it was announced that the Bank of Mexico has a record of reserves. He indicated that the economy is already growing and mentioned that the peso is strengthening. He commented that the country has healthy public finances and that there is a lot of confidence in Mexico.

COVID-19 Situation in Mexico

VACCINATION PROGRESS

Zoe Robledo, General Director for IMSS, reported that as of January 25, 8,279 doses were applied on that day, which generates a total of 642,105 vaccines applied. In this regard, he referred to the WHO recommendation on the range of application of the Pfizer vaccine, which can be from 21 to 42 days.

Regarding the Agreement published on January 25 at the Official Gazette, local governments, as well as individuals and companies, can cooperate with the federal government in the National Vaccination Strategy. Zoe Robledo mentioned that the government must be informed of the doses purchased regarding the vaccination calendar and that the vaccination process’s traceability is guaranteed.

Regarding the Russian vaccine Sputnik V, Juan Ferrer, head of INSABI, mentioned that it is expected that the contract will be signed on January 26, and the first 200,000 doses are expected to arrive next week.

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MEASURES TAKEN

BY STATES IN MEXICO GENERAL: Governors of the Federalist Alliance supported the authorization for local governments and companies to purchase the vaccine against COVID-19 and requested that the process does not include formalities that complicate the doses’ purchase.

AGUASCALIENTES With data until January 25, there are already 19,857 people infected by the Covid-19 coronavirus in the state territory since last March, in which the pandemic reached the entity. Data from the Ministry of Health reveal that, as happens every Monday, in the last 24 hours, there is a slight decrease in the level of new cases, as only 75 carriers of SARS-coV- 2. Only during the previous week, this figure increased by 1,339 infections. Within the Daily Technical Statement issued by the State Health Services Institute, 16,555 infections have been entered into its system, of which 85 were added only between Sunday and Monday. As has happened from the first cases, young people remain the largest group infected and transmitting the disease, concentrating, only among those aged 25 to 29, 11.7% of total cases. Those who are between 30 and 34 years old have 10.8% of the disease. Regarding people who have lost their lives, a total of 1,895 deaths officially recognized by the State Health Authority. As of this date, there are 270 patients whose severity has forced hospitalization in public hospitals of the entity, 104 with connection, through intubation, to an artificial mechanical respirator, and 166 in serious condition and supplemental oxygen assistance through nasal tips.

BAJA CALIFORNIA Although the Federal Government no longer considered Baja California as a ¨red light¨, the State Government of Baja California continues to consider the situation as a maximum risk status for the last week of January, being almost two months since the State went back to this status.

COVID-19 cases in Tijuana, Mexicali, and Ensenada continue to increase, with 1,478 reported active cases according to official numbers. Hospital occupancy continues to be over 80%. The vaccination campaign, which brought positive news and hope to the population when the first shipment arrived, has been halted or limited due to the lack of more vaccines being sent from the Federal Government. Given this situation, the State Governor, Jaime Bonilla, declared that he had given instructions to State Government officials to pursue the direct purchase of vaccines in order to have more vaccines available and add them to the National Vaccination Plan. Economic activities continue to operate with restrictions and safety protocols, and churches and temples have been allowed to reopen with limited capacity.

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MEASURES TAKEN

BY STATES IN MEXICO

CDMX CDMX will continue in red traffic light due to the level of hospitalizations, said the general director of Digital Government of the Digital Agency for Public Innovation. There is a possibility that both department stores and shopping malls will reopen on February 1.

GUANAJUATO Diego Sinhue Rodriguez Vallejo, Governor of Guanajuato, continues in the search to acquire vaccines against coronavirus. The state president pointed out that there are currently no resources available for this. However, using the payroll tax as a source to buy the doses is being analyzed, so a strategy will be proposed before the Advisory Council for the Follow-up of the Application of Payroll Taxes (Consainseg). Regarding the amount that could be used in the acquisition of vaccines if the necessary doses are found and are endorsed, the Governor pointed out that they evaluate effectiveness and prices. Given the shortage of vaccines, the Governor assured that options are still being evaluated. “We are reviewing the Russian vaccine, but we do need Cofepris to approve it, which we believe will approve it because the President has already negotiated a package for the federation and it is an option, and there is a Johnson & Johnson vaccine that is about to be approved in The United States where we are very interested because this vaccine involves a single dose, the others are double doses, and a second would cost 10 dollars against 15 or 30 which is what the Russian,” said the Governor.

JALISCO According to the cutoff of January 25, 8 of 53 COVID hospitals in Jalisco report 100% occupancy of patients in general hospitalization (+5 compared to the previous day), in beds with respirators, 6 of 53 medical units report 100% (-1 compared to the previous day). In Intensive Care Units, 6 out of 53 hospitals are saturated (+1 compared to the previous day). The Government of Jalisco announced this Monday the creation of a committee to purchase anti-COVID-19 vaccines by state and local authorities and the Private Initiative. The state Governor reported that he met with municipal presidents, leaders of Jalisco business organizations, and businessmen from the state pharmaceutical industry to “be able to take the agreements related to the announcements that the President (Andres Manuel Lopez Obrador) made a few days ago about the possibility that the private sector and local governments could make an effort to buy vaccines and reinforce the national vaccination plan”. In a video published through his social media, the state Governor assured that “it is our obligation to say it with all its letters, we are not certain that it is possible to buy vaccines at this time, first because it is not clear that there is the availability of themselves and secondly because the President’s announcement needs to be reinforced with a series of legal measures.”

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MEASURES TAKEN

BY STATES IN MEXICO

COAHUILA The governor of Coahuila Miguel Angel Riquelme Solis said that, after the federal government’s announcement, entities and individuals can acquire vaccines against COVID-19. He will hold a meeting this week with the Private Initiative to join forces and assured that some have already expressed their willingness to receive it. They only hope that it is formalized as soon as possible.

The government and the private initiative will consider joining efforts in two ways. One, in which companies can directly acquire the vaccine for their workers in coordination with the state government and the Ministry of Health, and the other side that they can contribute so that the entity has the required sufficiency when they can be acquired.

QUERETARO Queretaro’s spokesman Rafael Lopez Gonzalez indicated that from January 16 to 23, the state of Querétaro registered three thousand 79 cases and 228 deaths from Covid-19, recalling that in just eight days, there were more infections than those registered throughout June and July of last year, which totaled two thousand 903. During the broadcast on Monday, he said that according to the Sisver platform, hospital occupancy increased five percentage points, going from 56.4% to 61.4% in just one week. In the area of unfortunate ​​ deaths, it reported that from January 16 to 23, 228 people died, including two young people aged 15 and 18 and six more young people in the group aged 20 to 29 and 32 people aged 30 to 39 years of age. He invited the families of the youngest to impose a brake on the non-essential activities that they carry out outside the home, after referring that this generational group plays a very important role in breaking the chain of infections. “We ask that, for the next three weeks, you stop giving your minor children permission to leave if it is not absolutely necessary,” he requested. Lopez Gonzalez pointed out that February should be marked by the efforts of everyone to achieve healthy lifestyles. To achieve this, measures such as using a mask, healthy distance, and continuous hand washing must be redoubled, balanced diet, exercising, suppressing stress, and getting adequate rest since the vaccine for all is still a distant reality.

NUEVO LEON The government of Nuevo Leon will form a committee to purchase vaccines for the state. The State Secretary of Health, Manuel de la O. Cavazos, indicated that to guarantee that the vaccine’s acquisition against COVID-19 is cheaper and the process is carried out transparently, the state government will integrate specialists, academics, state and municipal authorities, among others.

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MEASURES TAKEN

BY STATES IN MEXICO

SONORA The State of Sonora, which has remained as a high-risk or on the orange traffic light for several months, is at risk of stepping back to a maximum risk status or red light, according to declarations from State Health authorities. As of January 23, 2021, this has been the deadliest month of the pandemic for the State of Sonora, with 787 reported deaths, surpassing the 606 reported in December 2020. More municipalities have been added to the maximum risk list, including Hermosillo, Nogales, San Luis Rio Colorado, Empalme, Guaymas, Cajeme, and Navojoa. After receiving the first shipment of anti-COVID vaccines from the Federal Government and with the new position of allowing each State to purchase vaccines, Claudia Pavlovich, the State´s Governor, has started working with Health officials in the direct purchase of the vaccines and declared that she ‘’will do everything it takes to obtain enough vaccines for all Sonorans’’.

STATE OF MEXICO The red epidemiological traffic light for COVID-19 will be extended as in Mexico City. Non-essential governmental activities will resume on February 2, 2021.

TAMAULIPAS Tampico Airport was included by Grupo Centro Norte (OMA) within the air terminals in Mexico, where the COVID-19 testing service will be installed for passengers from the United States and Canada, as part of the protocols for detection of cases. To meet this requirement, OMA will facilitate the location of modules so that passengers can take the antigen test even on the day of their flight. It is important to note that the test meets the standards requested by the authorities.

The test will generate, in a period of between 15 and 30 minutes, a result that will be granted printed or electronically so that the passenger can guarantee to the airline that he or she is free of COVID-19.

COVID-19 Situation in Mexico

MANUFACTURING INDUSTRY

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MEXICO BACKS UP REQUEST FOR MORE TIME TO COMPLY WITH USMCA RULES FROM AUTOMAKERS Mexico’s government approved 12 automotive companies’ request to extend the deadline to comply with new regional content requirements established in the renewed North American trade agreement, which came into force in July.

LIMITING EMPLOYEE PROFIT-SHARING (PTU) TO ONE MONTH’S SALARY, A PROPOSAL FROM THE PRIVATE SECTOR As part of the proposals that were presented to establish the payment of profits to workers was to establish a cap of one month’s salary and that the establishment of productivity bonuses be favored.

The Ministry of Economic said that, under the USMCA, companies requested an “Alternative Transition Regime” that extends the transition period to meet the goals.

This was stated by Francisco Cervantes Diaz, president of Concamin, and Miguel Elizalde, executive president of the National Association of Bus, Truck and Tractor-Truck Producers (ANPACT). He considered that Workers’ Profit Sharing should not be left as it is at present.

TherequestwasgrantedtoTesla,Volkswagen de Mexico, Volvo Car USA, FCA Mexico, Hyundai Motor America, Mazda Motor de Mexico, Toyota Motor de Mexico, Kia Motors Mexico, Kia Motors Manufacturing Georgia, Nissan Mexicana, Ford Motor Company, and Cooperation Manufacturing Plant Aguascalientes, he added.

“ThecurrentPTUschemeisnotlinkedtoamodernproductivity incentive scheme and therefore affects competitiveness, making it necessary to shorten the payment of PTU up to one month’s salary as already established by law for certain activities,” said Cervantes Diaz.

For free trade in light vehicles in the region, the agreement requires 75% North American content, up from the 62.5% threshold established in its predecessor, the North American Free Trade Agreement (NAFTA).

For Miguel Elizalde, by trying to incorporate the workforce directly in the companies, in the case of eliminating outsourcing, it would mean that the distribution of profits for the workers of the automotive group would be reduced, discouraging the workforce. And in the case of eliminating insourcing, “it implies losing the economy of scale that we have as an automotive group; this impacts the PTU by increasing costs and reducing profits; in addition to the fact that tax certifications and authorizations will have to be requested again, which can take months and additional costs”.

COVID-19 Situation in Mexico

People healed from coronavirus

Vaccinated people in the world

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72.4 Millions 68,407,248

GOOD NEWS RUSSIA TO SUPPLY MEXICO WITH 24 MILLION COVID-19 VACCINES, PRESIDENT SAYS Russia will supply Mexico with 24 million doses of the Sputnik V COVID-19 vaccine over the next two months, Mexican President Andres Manuel Lopez Obrador said after a phone call on Monday with Russian counterpart Vladimir Putin.

Putin’s pledge marks a sharp increase from a previous target from last week of 7.4 million doses through March, though some doubts over Russia’s production capacity persist.

Russia’s vaccine diplomacy has developed goodwill in Latin America after other pharmaceutical companies including U.S.based Pfizer Inc announced shortfalls in distribution plans.

Lopez Obrador held the call with Putin despite announcing on Sunday that he was himself infected with COVID-19 and was being treated for mild symptoms.

The Mexican leader added in a post on Twitter that he had invited the Russian head of state to visit Mexico.

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GOOD NEWS Lopez Obrador and Putin also discussed training for Mexican medical specialists in Russia, according to a news release from the Russian government.

Mexico has warned about a lack of doctors to accommodate the country’s high infection rate throughout the pandemic, particularly medical specialists. The country has among the lowest number of medical personnel relative to population among countries in the Organization for Economic Cooperation and Development, the government has said.

During the first three months of this year, tens of millions of doses are expected in Mexico from the Gamaleya Center, Sputnik V’s developer, as well as China’s CanSino Biologics Inc, Britain’s AstraZeneca and Pfizer.

But with Monday’s announcement, Sputnik V would be by far Mexico’s most-used vaccine over that time, in part because Pfizer cut back on what it had originally committed to Mexico.

Mexico’s health regulator has not yet approved Sputnik V, despite promising a quick process after a senior health official received clinical data during a visit to Argentina.

Argentina has spearheaded Sputnik V’s arrival in Latin America, adopting the vaccine early and administering hundreds of thousands of doses since late last year.

Global vaccine bottlenecks have been exacerbated by many wealthier nations refusal to participate in COVAX, a global vaccine program co-led by the World Health Organization.

The global body seeks to deliver at least 2 billion COVID-19 doses worldwide this year, with at least 1.3 billion for poorer countries.

But it has so far struggled to secure enough shots due to a shortage of funds, while richer countries have booked large volumes of vaccines for themselves.

Source: REUTERS

COVID-19 Situation in Mexico

GOOD NEWS A SCANNER THAT DETECTS COVID-19 IN PEOPLE AND SURFACES HAS BEEN CREATED AND WILL BE MANUFACTURED IN MEXICO Developed by specialists in the United States, Jordan, and Mexico, the scanner promises 100% effectiveness in detecting the virus in people and objects in a matter of seconds. “I have experience in medical research in Mexico, the United States, Canada, and other parts of the world, and I can tell you that never in my life have I seen such a revolutionary technology as this, which made me take a 22-hour flight to see for myself its effectiveness,” he said in an exclusive interview with Forbes Mexico.

The team of experts made up of specialists from Jordan, the United States, and a Mexican signed an agreement in which they determined that the manufacture and distribute this scanner named “Covid Hunter” in Mexico. For now, they have begun talks with different companies specialized in the manufacture of medical devices to determine the levels of production, materials, and distribution of the first units. Chihuahua will be one of the first states to be consulted since there are the most important companies globally in medical devices’ manufacture.

Once the first production is carried out, it is planned to advance with the certification processes before health authorities such as the FDA in the United States and Cofepris in Mexico.

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RECOMMENDATIONS IF I HAVE ALREADY HAD COVID-19 AND RECOVERED, DO I STILL NEED TO GET VACCINATED WITH A COVID-19 VACCINE? Yes. Due to the severe health risks associated with COVID-19 and the fact that reinfection with COVID-19 is possible, a vaccine should be offered to you regardless of whether you already had a COVID-19 infection. Federal Health Ministry provides recommendations to federal, state, and local governments about who should be vaccinated first.

At this time, experts do not know how long someone is protected from getting sick again after recovering from COVID-19. The immunity someone gains from having an infection, called natural immunity, varies from person to person. Some early evidence suggests natural immunity may not last very long.

LABOR

EHS

We won’t know how long immunity produced by the vaccination lasts until we have more data on how well the vaccines work.

DAVID ANTUNEZ

Both natural immunity and vaccine-induced immunity are important aspects of COVID-19 that experts are trying to learn more about. The government will keep the public informed as new evidence becomes available.

Environmental, Health, and Safety Director.

NATIONAL VACCINATION PROGRAM AGAINST COVID-19 NEW AGREEMENT The recent agreement published by the Federal Health Department, which establishes that state governments, as well as the private sector, will contribute to the implementation of the national vaccination program against the SARS-CoV-2 virus, has encouraged several companies to consider the possibility of acquiring vaccines and applying them to their personnel. Companies should be cautious when planning the possible purchase of vaccines because the road ahead is still long, and there is still a long way to go. It is necessary to know more details and times for this to happen, due to the fact that most pharmaceutical companies have already committed their production for months to attend the sanitary emergency and supply the governments, as well as the authorizations and permits that some vaccines have not yet received for their use in Mexico.

ALVARO GARCIA HR Director

BASIC PROTECTIVE MEASURES AGAINST COVID-19

1 2 3 4 5 Wash your hands frequently with soap and water for 20 seconds.

When coughing or sneezing, cover your nose and mouth with a disposable tissue or use the inside corner of your arm.

Avoid shaking hands and kissing.

Keep your workspace clean and don't share personal items and utensils.

If you show symptoms of a cold or flu, go to a doctor. Do not self-medicate and inform your supervisor and Human Resources department.

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