December 14-20, 2024
HOT TOPICS:
INFONAVITLawis presented by Sheinbaum
The proposed reform to the Infonavit Law, pushed by President Claudia Sheinbaum, aims to eliminate corruption, enhance transparency, and prioritize social housing Key aspects include restructuring Infonavit to ensure direct accountability in resource management, enabling federal audits, and maintaining the tripartite system involving the government, workers, and employers The reform introduces an Infonavit-owned construction company focused on affordable housing for low-income workers, promoting local economic growth and urban development. Additionally, the reform proposes affordable credit, land acquisition for housing, and rent-to-own programs capped at 30% of workers' salaries To combat corruption, the reform addresses past abuses such as fraudulent housing loans, illegal resource diversion, and uncompleted projects costing Infonavit billions of pesos High-ranking officials have been implicated in mismanagement, including overpaid salaries exceeding the President’s, unauthorized insurance contracts, and opaque fund allocations
Critics argue the reforms could centralize control within the federal government, raising concerns about transparency and potential misuse of funds Nevertheless, Sheinbaum defends the reform as essential for ensuring workers’ savings are secure and for revitalizing Infonavit's mission of providing adequate housing The changes, approved by the Senate, await further review by the Chamber of Deputies in 2025. The reform represents a significant shift in Infonavit's operations, aiming to uphold its foundational purpose while addressing systemic corruption and inefficiency
Source: GOBIERNO DE MÉXICO
JUDICIAL REFORM ELECTION
The judicial selection process in Mexico advances with a preliminary list of 11,015 candidates for roles such as judges, magistrates, and Supreme Court justices Arturo Zaldívar, General Coordinator of Policy, announced that 18,744 applications were reviewed, and 7,432 were disqualified for failing to meet documentation requirements Among eligible candidates, gender and category diversity are prioritized For the Supreme Court, 228 candidates remain: 61 women, 160 men, and two non-binary individuals. A final list of 90 candidates will be drawn for nine positions The process, part of a judicial reform initiative, emphasizes honesty, experience, and social sensitivity Results will be finalized in January, with elections scheduled for June 2025.
Source: FORBES MÉXICO
INTERNAL MORENA CLASH
The clash between Morena leaders Adán Augusto López and Ricardo Monreal has exposed divisions within Mexico's ruling party, challenging President Claudia Sheinbaum’s unity narrative López accused Monreal of financial irregularities involving phantom companies during his Senate tenure, igniting tensions Sheinbaum intervened to ease the conflict, securing a photo of the two leaders as a gesture of unity Both figures, former presidential hopefuls, have a history of disputes.
The turmoil has sparked calls for internal reforms, including enhanced fiscal oversight in Congress, spearheaded by Sheinbaum ally Alfonso Ramírez Cuéllar Meanwhile, Sheinbaum emphasized the movement’s priority over personal conflicts, urging leaders to resolve disputes privately Morena’s unity remains critical for advancing its legislative and transformation agenda amidst growing internal challenges
Source: EL PAÍS
BANXICO MONETARY POLICY
The Bank of Mexico reduced its benchmark interest rate by 25 basis points to 10 00%, effective December 20, 2024 This decision reflects a downward inflation trend, with general inflation falling to 4 55% in November However, persistent inflation in services and global risks, such as geopolitical tensions and potential U S tariffs, remain concerns While economic growth in Q3 2024 improved, it is expected to slow The Bank anticipates continued rate cuts, depending on inflation trends and global economic developments, aiming for 3% inflation by Q3 2026.
Source: BANCO DE MÉXICO
HOT TOPICS:
Mexico'sTariffson textilegoods
President Claudia Sheinbaum signed a decree raising tariffs by 35% on finished textile goods and 15% on textile imports to protect Mexico’s textile industry and approximately 400,000 related jobs The measure addresses loopholes in the IMMEX program that allowed tax-exempt imports to enter the domestic market unfairly, harming local businesses. Economy Secretary, Marcelo Ebrard, emphasized this action as a step toward closing gaps enabling tax evasion and combating unfair competition He highlighted efforts to eliminate "technical smuggling," where imports declared as temporary evade taxes but are sold locally Irregularities in 40% of audited customs agencies have led to the revocation of seven customs broker licenses
The government is also intensifying operations against piracy and ensuring compliance with industrial property regulations These measures aim to establish fair market conditions, prevent the entry of untaxed finished products, and maintain accountability among customs agents. By implementing stricter controls, the administration seeks to protect national industries, ensure adherence to trade laws, and promote equitable competition in the textile sector Ebrard underscored the importance of customs brokers’ trustworthiness, with the government now taking stricter actions to prevent abuses, recover unpaid taxes, and sustain confidence in trade processes
Source: EL ECONOMISTA
TRUMP RESISTS PUSH BY CEOs TO SOFTEN HIS TARIFF STANCE
President-elect Donald Trump’s tariff threats have prompted a lobbying push from businesses seeking exemptions, but Trump remains steadfast. Executives face challenges influencing his plans, as his decisions are made independently with minimal input from advisors Late-night social media posts announcing tariff intentions have left even his closest allies unprepared
Trump’s team has indicated there’s little chance of altering his commitment to extensive tariffs, raising concerns among domestic and international companies about the economic impact. Businesses fear higher costs from a potential multi-front trade war, which economists warn could increase consumer prices and disrupt supply chains
Source: THE WALL STREET JOURNAL
STELLANTIS
Stellantis Mexico plans double-digit growth in 2025, with the launch of up to 15 new models and continued investments, particularly in its Saltillo, Coahuila plant. The company is also advancing electrification, including the production of electric vehicles at its Toluca plant, where it invested $1.6 billion In 2025, further electrification efforts will continue in Coahuila, which manufactures trucks, vans, and engines
CEO Carlos Quezada emphasized the company’s commitment to Mexico, citing high-quality manufacturing and skilled workers However, the company faces challenges, including potential tariffs on the automotive industry from U S President-elect Donald Trump and the upcoming review of the USMCA These factors could impact Stellantis’ operations and exports to the U S
Source: EL ECONOMISTA
US EMBASSY IN MEXICO
The United States is building a new embassy in Mexico City, investing over $1 2 billion to enhance its diplomatic presence This facility will consolidate operations, housing more than 1,400 employees, promoting sustainability and resilience The embassy is a symbol of the strong U.S.-Mexico relationship, which involves critical areas such as trade, security, and tourism By providing a central hub, the embassy will further strengthen cooperation between the two nations, enhancing bilateral ties and addressing regional issues, including economic and diplomatic initiatives across Latin America
Source: MEXICO INDUSTRY
HOT TOPICS: Legislative and Regulatory Issues:
LABOR
Resolution that sets the general and professional minimum wages that will govern as of January 1, 2025.
Presented by: National Commission of Minimum Wages
Purpose: Starting January 1 of next year, the general minimum wage will increase from 248 93 to 278 80 pesos per day and the minimum wage in the Northern Border Free Zone (ZLFN) will increase from 374 89 to 419 88 pesos per day.
Status: Published in the DOF
Reform of various provisions in the Federal Labor Law
Presented by: Ricardo Monreal
Purpose: Employers are required to provide enough seats with backrests for workers during their shifts to rest periodically Workers cannot be forced to stand for their entire shift
Status: Published in the DOF
INITIATIVE WITH A DRAFT DECREE TO REFORM AND ADD VARIOUS PROVISIONS OF THE FEDERAL LABOR LAW
Presented by: Sen Geovanna del Carmen Bañuelos De la Torre (LNalMORENA)
Purpose: To establish an obligation for employers to grant bereavement leave, for a minimum of five days with full pay, to employees upon the death of a close family member within the first degree of consanguinity or affinity. These days must be consecutive and immediately follow the death
Status: Presented in the Plenary of the Senate
FINANCIAL
Proposal to Extend Fiscal Incentives in the Northern Border Region
Presented by: Sen Juan Carlos Loera De la Rosa (Chih - MORENA)
Subject: Urges the Federal Executive to extend fiscal incentives in the northern border region for six more years to strengthen the regional economy, boost investment, improve competitiveness, and enhance family welfare in this strategic area
Status: Published in the Parliamentary Gazette
Third Modifications to Miscellaneous Tax Resolution 2024
Presented by: Ministry of Finance and Public Credit
Subject: Establishes virtual assets authorized by the Bank of Mexico as legal tender Requires financial technology institutions to register and obtain authorization from the Bank of Mexico to operate with virtual assets Grants one year for the Bank of Mexico to analyze and approve eligible virtual assets for legal tender
Status: Published in the DOF
Federal Expenditure Budget for 2025
Presented by: Budget and Public Account Commission
Subject: Approved total expenditure of MXN 9.3 trillion with a budget deficit of MXN 1 17 trillion Resources are allocated across various ministries, prioritizing public health, security, education, and social programs
Status: Approved, Sent to the Executive
ENVIRONMENTAL
Amendments to Mexico City Fiscal Code
Presented by: Ecology and Sustainable Development Commission
Subject: Extends the deadline for banning non-biodegradable plastic beverage containers Prohibits containers with 25% recycled plastic starting Jan 1, 2027, and with 30% recycled plastic by 2028
Status: Published in the Parliamentary Gazette
Transitional Article Two of the State Waste Law Reform Decree
Presented by: Ecology and Sustainable Development Commission
Subject: Extends the deadline for banning non-biodegradable plastic beverage containers. Prohibition for containers with 25% recycled plastic starts Jan 1, 2027, and with 30% recycled plastic by 2028
Status: Published in the Parliamentary Gazette
TECHNOLOGY
Bill Amending, Article 40 of the Foreign Trade Law
Presented by: Herminia López Santiago
Purpose: Establishes that the imposition of tariffs on imports of merchandise in Mexico must consider the tariffs imposed by the country of origin of said merchandise on Mexican exports.
Status: Presented in the plenary of the Chamber of Deputies
