November 23-29, 2024
HOT TOPICS:
MexicanGovernmentpresentsthe BusinessCouncil
The Mexican government recently launched the Regional Economic Development and Business Relocation Advisory Council (CADERR), led by Altagracia Gómez Sierra, to attract foreign investment, create jobs, and promote regional development. This council includes 14 prominent business leaders eight women and six men representing diverse sectors Members include leaders from major companies like Softtek, Grupo Lala, and José Cuervo The council will collaborate with government ministries, universities, and business associations, holding quarterly meetings chaired by President Claudia Sheinbaum
Despite optimism about the council’s potential, business concerns over economic instability persist Rising labor costs, fueled by proposed reductions in the workweek from 48 to 40 hours, have sparked debate. Critics argue this is poorly timed, given economic pressures from U.S. policies under President Donald Trump and Pemex's ongoing financial struggles, including delayed payments to suppliers
Amidst these tensions, Sheinbaum enjoys strong public support, though concerns remain about the council’s ability to navigate internal economic challenges while promoting competitiveness and collaboration between businesses and the government
Source: EL FINANCIERO
FEDERAL RIGHTS LAW
The Mexican Chamber of Deputies approved the Federal Rights Law (LFD) with 344 votes in favor and 91 against, increasing fees in sectors such as mining and migration services to generate MXN 137.5 billion in revenue for 2025. Key changes include raising the special mining fee from 7 5% to 8 5% and the extraordinary fee on gold, silver, and platinum from 0 5% to 1% Migration service fees for international travelers will rise by 20%, from MXN 185.91 to MXN 223.09. The law also removes aviation schools' tax exemptions for airspace use and introduces higher protected area access fees to reflect environmental impacts Exemptions are provided for indigenous communities and emergency telecom services Revenue allocation prioritizes national defense and migration programs The reform aims to enhance public resource management while addressing economic and social needs.
Source: EL ECONOMISTA
40 HOUR WORKWEEK INITIATIVE
Former lawmaker and lawyer María Luisa Luévano began a hunger strike outside the Mexican Chamber of Deputies, demanding a vote on the proposal to reduce the workweek from 48 to 40 hours The initiative faces resistance from businesses due to increased labor costs, although organizations like the OECD argue that shorter hours improve productivity
The proposal, previously stalled in Congress, has been reintroduced with new plans for gradual implementation and wage protection President Claudia Sheinbaum has pledged to advance the initiative during her administration, raising hopes in Congress. Countries like Chile and Colombia, which recently implemented similar reforms, offer models for gradual transitions and flexible work schedules These new proposals aim to secure two days of rest per week while safeguarding workers' rights Lawmakers are now awaiting the scheduling of a final vote on this reform
Source:
LA JORNADA
HOT TOPICS:
Claudia Sheinbaum on tariffs
On November 26, 2024, Mexican President Claudia Sheinbaum publicly responded to U S President-elect Donald Trump's plan to impose a 25% tariff on imports from Mexico and Canada, along with a 10% tariff on Chinese goods Sheinbaum emphasized that solving issues like migration and drug consumption requires cooperation, not threats or tariffs, warning that reciprocal tariffs would harm shared industries, including major U S automakers in Mexico, leading to inflation and job losses in both nations. She reaffirmed North America's economic strength lies in maintaining commercial unity, making the region more competitive globally
Sheinbaum highlighted Mexico's efforts to manage migration, noting a 75% drop in border crossings since late 2023, with many migrants now using legal appointments through the CBP One program. She also addressed fentanyl trafficking, pointing out that precursors arrive illegally from Asia, stressing the need for international collaboration Mexico has seized large amounts of drugs and firearms while moving towards stricter penalties for synthetic drug trafficking She reminded Trump that 70% of illegal weapons in Mexico come from the U S and urged dialogue over confrontation to ensure mutual prosperity Sheinbaum plans to send a similar letter to Canadian Prime Minister Justin Trudeau to strengthen trilateral relations under the "Plan Mexico" initiative
Source: GOBIERNO DE MÉXICO
"SOFT" INVASION
Donald Trump and his transition team are reportedly discussing the extent of a potential "soft invasion" of Mexico, aiming to target drug cartels through covert operations without Mexico’s consent, according to Rolling Stone. This plan would involve U S special forces assassinating cartel leaders, similar to the 2019 operation against ISIS leader Abu Bakr al-Baghdadi Trump has previously proposed military action against cartels, stating in 2019 that the U.S. is ready to assist Mexico in eradicating them
Discussions of such actions date back to Trump’s first term and campaign trail promises Former defense secretary Mark Esper revealed that Trump even suggested launching missiles into Mexico Support for military intervention in Mexico has surfaced in Congress, with Senator Marco Rubio backing troop deployment if Mexico cooperates, while Senator Tom Cotton supports intervention without Mexican approval.
Source: EL INDEPENDIENTE
TRUMP SPEAKS TO SHEINBAUM
President-elect Donald Trump claimed that Mexican President Claudia Sheinbaum agreed to immediately halt migration to the U.S. and secure the southern border, a statement Sheinbaum denied Trump highlighted their productive phone conversation on Truth Social, discussing drug trafficking and migration control However, Sheinbaum emphasized that Mexico’s stance is not to close borders but to strengthen cooperation and respect human rights
Their discussion followed Trump's announcement of a 25% tariff on Mexican and Canadian goods if migration and drug trafficking, particularly fentanyl, aren’t curbed. Sheinbaum warned of reciprocal tariffs and made joint efforts with Mexican business leaders against these measures
Source: EXPANSIÓN
MEXICO'S RATINGS CONTINUE TO GO DOWN
HR Ratings downgraded Mexico's sovereign credit outlook from stable to negative, citing weaker-than-expected economic growth for 2024 and 2025, alongside slower fiscal deficit reduction. The agency forecasts a 1 4% growth in 2024 and 1 1% in 2025, below government expectations Despite a projected reduction in fiscal deficit, Mexico’s debtto-GDP ratio is expected to increase, putting pressure on economic stability
Source: EXPANSIÓN
HOT TOPICS: Legislative and Regulatory Issues:
PUBLIC ADMINISTRATION
Minute with decree project to amend, add, and repeal various provisions of the Constitution regarding the elimination of autonomous organizations
Presented by: Andrés Manuel López Obrador (MORENA)
Purpose: Streamline the application of the Republican austerity policy by reincorporating the functions of autonomous and decentralized organizations into the Federal Public Administration Proposes eliminating entities like COFECE, IFT, INAI, CONEVAL, CNH, and CRE while centralizing their responsibilities within corresponding federal agencies to prevent redundancy and inefficiency
Status: Approved by the Senate
Bill under discussion with a decree project to amend, add, and repeal various provisions of the Organic Law of the Federal Public Administration
Presented by: Joint Committees on Governance and Legislative Studies
Purpose: Restructure the Federal Public Administration to enhance efficiency, austerity, digital governance, and responsiveness to societal demands Establishes new agencies and secretariats, redefining roles in key areas such as health, education, environment, telecommunications, security, anticorruption, and foreign affairs, focusing on sustainability, innovation, and inter-institutional coordination
Status: Presented to the Plenary of the Senate for analysis and discussion
ECONOMY ISR, IEPS, IVA Laws
Presented by: Sen Eugenio Segura Vázquez (QR - MORENA)
Purpose: Proposes tax incentives for residents and businesses in Mexican islands Includes a 1/3 income tax credit and an 8% VAT rate for specific activities. Excludes certain industries like banking, maquila, and digital commerce from eligibility Introduces fuel tax incentives for service stations in island territories.
Status: Published in the Parlametary Gazzete
Value Added Tax Law
Presented by: Sen Armando Ayala Robles (BC - MORENA)
Purpose: Proposes a 5% VAT rate for the northern border region, applicable to individuals/entities earning at least 90% of their income in this region SAT to issue general rules for compliance
Status: Published in the Parlametary Gazzete
TECHNOLOGY
General Law of Data Protection
Presented by: Sen María Martina Kantun Can (Camp - MORENA)
Purpose: Defines biometric data and sets strict rules for its collection, storage, and use. Requires explicit consent for biometric data processing and prohibits biometric databases from being shared with third parties, except as specified by law Establishes confidentiality requirements and sanctions for noncompliance.
Status: Presented to the plenary of the Senate
section XVII and adding section XXVII Ter to article 132 of the Federal Labor Law
Presented by: Julieta Kristal Vences Valencia (MORENA)
Purpose: Mandates employers to comply with safety, health, and environmental standards, granting workers one paid day annually for preventive health check-ups, including exams like Pap smears, mammograms, and prostate screenings, recognized as legally worked time
Status: Presented to the plenary of the Chamber of Deputies
LABOR
Decree bill amending
