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GENERAL SITUATION IN MEXICO

Weekly Review # 48 I March 31, 2021

CONFIRMED CASES: 2,227,842

NEW CASES REPORTED: 1,292

DEATHS: 201,826

ACCUMULATED DEATHS PER DAY

SOURCE: https://www.gob.mx/salud/

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

Information updated on March 29, 2021 at 19:00 hrs local time.

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.

National rate 1727.38

0 to 500 (1 states)

1,5001 to 2,000 (4 states)

501 to 1,000 (5 states)

>2,000 (9 states)

1,001 to 1,500 (13 states)

Elaborated by Prodensa with information from the Health Ministry of Mexico

PANDEMIC’S SITUATION IN THE WORLD • As of March 29 2021, globally there have been reported confirmed 126,890,643 cases (518,201 new cases) of COVID-19 and 2,778,619 deaths (8,923 new deaths*). Lethal rate: 2.2%. • In the last 14 days, the number of new cases accounts for 6% (6,987,691) 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

SOURCE: https://www.gob.mx/salud/

TOWARDS THE “NEW NORMAL” INCIDENTS OF CONTAGIONS IN THE POPULATION BY REGION AS OF MARCH 30

DEATH INCIDENTS IN POPULATION BY REGION AS OF MARCH 30

SOURCE: https://www.gob.mx/salud/

TOWARDS THE “NEW NORMAL”

The traffic light will be as follows:

SOURCE: https://www.gob.mx/salud/

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference March 24 –30, 2021

DISTRIBUTION OF VACCINES TO LATIN AMERICA Marcelo Ebrard announced that from the third week of April, Mexico would distribute to Latin America the first batches of the AstraZeneca Covid-19 vaccine that will be packaged in the State of Mexico. ELECTRICAL INDUSTRY The President pointed out that for him, “neoliberalism” equals corruption, and in the case of the Electricity Industry, it is no exception. Since former president Salinas de Gortari allowed private national and foreign companies to start commercializing electricity, corruption began. Before this, CFE was in charge of power generation and distribution. He reiterated that large corporations “disguise” their interests under arguments of concern for the environment, but the reality is that they have lower rates than some families have. That is because they have access to subsidies paid with money from the people and should disappear. It is an injustice that money from the budget is used to pay the bills of large corporations and commercial chains. He stressed that most media are “business” and have forgotten ethics; they have distanced themselves from citizens and the truth. Still, they are very close to economic power; that is why they are against his administration.

SOURCE: https://www.youtube.com/channel/UCxEgOKuI-n-WOJaNcisHvSg

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference March 24 –30, 2021

REFORM TO THE HYDROCARBONS LAW The President said that the initiative presented on Friday 26 was created to prevent smuggling, since in the previous government, with the energy reform “approved with bribes given to legislators,” more than a thousand concessions were given for the importation of fuels for a volume three times greater to what Mexico consumes. He indicated that something similar happened with the mining concessions. Many of the canceled contracts continued to be used irregularly and smuggled fuel, which is why the initiative was sent. He said that a constitutional reform on the matter would not be carried out, and current contracts will be respected. However, with the approval of the initiative, no new contracts will be given. He stressed that at the end of the six-year term, Mexico would produce its own gasoline to stop depending on foreigners.

SOURCE: https://www.youtube.com/channel/UCxEgOKuI-n-WOJaNcisHvSg

GENERATION AND EQUALITY FORUM The inauguration of the international forum dedicated to gender equality and the defense of women’s rights was held, organized by UN Women, the Government of France, and the Government of Mexico, aiming to accelerate actions to comply with the commitments made to achieve gender equality. Antonio Guterres, Secretary of the United Nations, pointed out that violence against women is increasing, the pandemic has affected the lives of millions of women and girls. Therefore it is necessary to create an equal world. MIGRATION The Secretary of Foreign Relations, Marcelo Ebrard, pointed out that an immediate action program has been proposed in Honduras, Guatemala and El Salvador. Young people are included in social programs such as “Young people building the future” and “Sowing Life.” These programs were presented to the United States, and it was suggested that in order to bring a solution for migration, it is necessary to take action through social and economic programs.

VACCINATION PROGRESS

The Secretary of Foreign Affairs, Marcelo Luis Ebrard, informed that the total number of vaccines received was 12,334,445 doses. He mentioned that between March 30 and April 4, 2,342,675 doses are expected from the United States. Also, doses from Pfizer (Belgium) Sputnik (Russia) will arrive. As of March 29, 7,018,449 doses had been applied. From this, 850,939 have the complete scheme (2 doses). 5,347,843 elderly citizens have been vaccinated with one dose, and 204,908 have the full scheme.

MEASURES TAKEN BY STATES IN MEXICO

BAJA CALIFORNIA For the week of March 29th to April 4th, Baja California is considered a medium risk or yellow traffic light. Hotels and restaurants are now allowed to operate at 100% capacity, while massive events, recreational centers, and nightclubs continue to be suspended. As of March 30th, there are 327 active Covid-19 cases in the State, increasing from last week´s report. Hospital occupancy is at 9.08%, with 853 hospital beds available and 243 available respirators. By Sunday, March 28th, it was reported that 194,885 adults over 60 years old had been vaccinated in the State. On March 30th, a new shipment of 84,120 Sinovac vaccines was received, which will be applied mainly in the city of Tijuana.

SONORA After two weeks of being considered as low-risk or as a green traffic light, the State of Sonora is back to medium-risk or yellow traffic light, according to the Federal Government´s risk scale. State health authorities are worried about the possibility of a third wave in Sonora, brought on by travel during Holy Week, which just got underway. New confirmed daily cases have been ticking up in recent days, as has hospital bed utilization, though deaths remain flat, according to data maintained by the University of Sonora. In order to prevent higher risks of contagion, during Holy Week, curfew at midnight is being implemented in all major cities and tourist locations, as well as 50% and 75% capacity limits for closed and open spaces. Other measures implemented is that Sonoran authorities will request proof of Covid-19 negative tests to all visitors, mainly coming by car from the US. On March 29th, a new shipment with 19,720 Sinovac vaccines was received in Hermosillo. These vaccines will be applied to adults over 60 years old in 8 municipalities that will be defined later today.

MEASURES TAKEN BY STATES IN MEXICO

COAHUILA By the end of last week, the Government of Coahuila, through the Ministry of Health, received 35,550 doses from Pfizer and SINOVAC that will be destined for the municipalities of Torreon, Ramos Arizpe, Sabinas, San Juan de Sabinas, San Pedro, and Matamoros. Roberto Bernal Gomez, Secretary of State Health, reported that to date, more than 144,000 vaccines had reached the entity for the elderly, of which about 100,000 have already been applied in the 8 Health Jurisdictions. TAMAULIPAS The Ministry of Health announced that Tamaulipas goes to a green traffic light for the next 15 days, for the Easter holidays. The decision is made due to the drop in Covid-19 cases. It should be noted that the Tamaulipas government published a protocol to receive tourists on the beaches during the following Holy Week. In addition, the agreement of the State Health Safety Committee has sanitary measures in force until April 15.

NUEVO LEON In Nuevo Leon, the vaccination campaign against the coronavirus began a few weeks ago in the municipalities of Juarez and Apodaca. And while waiting for dates in other parts of the metropolitan area, it was defined that the Tigres stadium (Local Soccer Team) will become a vaccination center. Likewise, after the epidemiological Covid semaphore of Nuevo Leon presented an improvement in its average indicators, compared to the previous week, the Health Safety Council determined to keep parks and public places open during Holy Week.

MEASURES TAKEN BY STATES IN MEXICO

AGUASCALIENTES On March 30th, the third vaccination day for adults over 60 years of age will occur in the municipality of Aguascalientes, in which 10 thousand doses of the vaccine against Covid-19 will be applied. This was informed by the Governor of the state, Martin Orozco Sandoval. The strategy for the delivery of tokens and the general logistics of the vaccination day will be defined on Monday morning, after the federal and state authorities’ meeting. Then the citizens will be informed if the tokens will be issued to guarantee the shifts for the elderly during the afternoon. Likewise, the initial letters of the surnames of the seniors to be immunized will be informed.

GUANAJUATO Until March 30th, Guanajuato’s Ministry released the numbers of infections and deaths in the state, registering only 61 new confirmed cases of coronavirus and only nine deaths caused by the virus, which further reduces the curve of infections to the point that it is the lowest figure recorded this year. Through social media, a document began to circulate where the operational proposal of the vaccination sites chosen when the time comes for Leon’s application is set out. The Municipal Government informed that these are only assumptions that are part of the planning and were chosen to anticipate the eventual arrival when federal authorities inform of their arrival. Vaccination points will be determined by health authorities as soon as the Federal Government reports on the distribution and reception of vaccines for Leon. For now, municipal authorities say that they do not have precise information about the exact date of arrival of the vaccines or the vaccination points. As soon as details are received, they will be made public through the General Director of Health.

MEASURES TAKEN BY STATES IN MEXICO

JALISCO The Ministry of Health of Jalisco counted 232,964 cases of Covid-19 in the state and 11,206 deaths to date. Vaccinations for health personnel are 93.13 percent complete. The vaccination day against Covid-19 for adults over 60 years old in Guadalajara closed with 65 thousand 861 doses applied, equivalent to 63.06 percent of the 104 thousand 430 doses assigned exclusively for this sector of the resident population of the state capital. Of the number of doses applied so far, 50,400 correspond to Pfizer-BioNTech and 15,461 to Sinovac. Concerning the 3,390 doses assigned to health personnel, 3,289 vaccines have been applied to date, which corresponds to an advance of 97.02 percent. The Ministry of Health of Jalisco (SSJ) reminds us that despite the decrease in the number of infections, the pandemic continues to be active, so all people should maintain prevention measures. The Secretary of Health of Jalisco, Fernando Petersen Aranguren, calls on senior citizens who have already received their first dose of vaccine against COVID-19 to avoid seeking a second dose when Sinovac is being applied because it is a different pharmaceutical.

“We are administering the Sinovac vaccine, and we remind everyone not to go for a second dose, especially if they received a Pfizer vaccine. Current guidelines prevent us from mixing vaccines, so you should not get a second Sinovac vaccine if you received a Pfizer vaccine. At the current time, we are giving Sinovac vaccines for older adults for first doses only,” said the Secretary of Health. QUERETARO The COVID-19 vaccination day began on March 29 in Ezequiel Montes and Peñamiller, which would be the 15th and 16th municipalities where the vaccine is being applied. The head of the Welfare Secretariat, Rocio Peniche Vera, commented that they expect the vaccination to be completed this week. It could be Wednesday when all the vaccines have already been applied to adults over 60 years of age living in both municipalities. “The municipalities that have yet to begin vaccination are Queretaro and San Juan del Rio, two of the state’s most populated municipalities. He said the other municipalities’ experience would help carry out the vaccination day in an orderly manner. The vaccination is expected to begin next week in both municipalities; there is no established date, but this is the estimate that the Welfare Secretariat has so far.

MEASURES TAKEN BY STATES IN MEXICO

STATE OF MEXICO The second dose application of the vaccine against COVID-19 to senior citizens began in Ecatepec, Amecameca, Ayapango, Juchitepec, Tepetlixpa, and Tlalmanalco. In Ecatepec, 10 vaccination modules will be opened for the second dose. CDMX The head of government estimated that one million 600 thousand senior citizens would be vaccinated in two more weeks. Next week, vaccination will continue in the municipalities of Benito Juarez, Cuauhtemoc and Alvaro Obregon. On Friday, in Iztapalapa and Gustavo A. Madero. During Easter Week, the city will remain in orange traffic light, informed the Digital Agency for Public Innovation Director.

MANUFACTURING INDUSTRY

U.S. PRIVATE SECTOR REQUESTS CONSULTATIONS WITH MEXICO OVER USMCA VIOLATIONS A total of 19 U.S. industry, trade, and research associations asked the U.S. Trade Representative (USTR) to initiate consultations with Mexico over alleged violations of the U.S.-Mexico-Canada Agreement (USMCA). “The U.S. energy sector faces a growing range of market access barriers that are contrary to Mexico’s commitments in the USMCA (Article 2.3) regarding the protection of national treatment investment in Mexico and exports of U.S. energy equipment and resources,” the associations state. Also, the alleged violations involve other industries such as telecommunications, pharmaceuticals, food, and electronics, among others. Among the associations are the American Petroleum Institute (API), The National Foreign Trade Council (NFTC), Telecommunications Industry Association (TIA), National Association of Manufacturers (NAM), and Pharmaceutical Research and Manufacturers of America (PhRMA).

MANUFACTURING INDUSTRY ALERTS BEYOND THE ENERGY SECTOR In addition to recent attempts to change Mexico’s energy and electricity policy, U.S. IP lists other alerts that would hinder doing business in the country:

RESTRICTIONS ON COMPETITION AND PRIVATE INVESTMENT During the last year, President Lopez Obrador has issued a series of regulatory and administrative measures. According to the letter, restrict private, foreign, and domestic investment competition with Pemex and the Federal Electricity Commission (CFE), entrenching their dominant role in Mexico and reversing the energy market reforms enshrined in the USMCA. They noted that President Lopez Obrador had ordered Mexican energy regulatory agencies to expressly favor Pemex and CFE over private investment in all energy production and generation and apply a new policy of bailing out ailing state-owned companies. “But it has been dramatically elevated in recent months with a very troubling legislative effort to fast-track reforms to the Electricity Industry Law that will directly harm U.S. energy and electricity companies in the Mexican market,” they add. According to the associations, U.S. investors now face increasing difficulties in obtaining permits for various activities, including new or rebranded stations, third-party storage facilities, imported fuels, liquids terminals, and LNG terminals.

• The possibility that a bill on autonomous regulators could be introduced in the Mexican Congress that could include measures that impact their independence or diminish their budget or technical expertise • Senator Ricardo Monreal’s new film and the audiovisual bill contains protectionist proposals that, for example, would impose a 15% local content quota in movie theaters. • In-country testing requirements proposed by the government in February 2020 (in Technical Provision IFT-012-2019) would increase costs for U.S. companies selling covered mobile devices and harm companies that provide testing, inspection, and certification services. • Cofepris has delayed approvals of new clinical trials and new biotherapeutic and biotech agricultural products and has not been transparent in its regulatory approval processes.

GOOD NEWS

MEXICO RECEIVES 1.5 MILLION DOSES OF THE ASTRAZENECA COVID-19 VACCINE FROM THE U.S.

Delivery of 1.5 million doses of the AstraZeneca COVID-19 vaccine from the United States landed in Mexico City on Sunday night, Mexico’s Foreign Ministry said, following an agreement U.S. President Joe Biden made with Mexico this month. The vaccines were the initial batch of an agreement to send some 2.7 million doses from AstraZeneca from the United States to help Mexico compensate for local shortages for its campaign to vaccinate its population of 126 million.

EHS

RECOMMENDATIONS IF YOU’VE BEEN FULLY VACCINATED: What’s Changed • You can gather indoors with fully vaccinated people without wearing a mask. • You can gather indoors with unvaccinated people from one other household (for example, visiting with relatives who all live together) without masks unless any of those people or anyone they live with has an increased risk for severe illness from COVID-19. • If you’ve been around someone who has COVID-19, you do not need to stay away from others or get tested unless you have symptoms. • However, if you live in a group setting (like a correctional or detention facility or group home) and are around someone who has COVID-19, you should still stay away from others for 14 days and get tested, even if you don’t have symptoms. What Hasn’t Changed • You should still take steps to protect yourself and others in many situations, like wearing a mask, staying at least 6 feet apart from others, and avoiding crowds and poorly ventilated spaces. Take these precautions whenever you are: • In public • Gathering with unvaccinated people from more than one other household • Visiting with an unvaccinated person who is at increased risk of severe illness or death from COVID-19 or who lives with a person at increased risk • You should still avoid medium or large-sized gatherings. • You should still delay domestic and international travel. If you do travel, you’ll still need to follow governmental requirements and recommendations. • You should still watch out for symptoms of COVID-19, especially if you’ve been around someone who is sick. If you have symptoms of COVID-19, you should get tested and stay home and away from others. • You will still need to follow the guidance at your workplace.

DAVID ANTUNEZ Environmental, Health, and Safety Director.

LABOR

RECOMMENDATIONS POSSIBLE THIRD WAVE OF INFECTIONS

Today in Mexico, the number of infections is considerably lower compared to the months of the 2020-2021 winter season, which could lead to a relaxation of the measures. It is important to communicate to workers that the authorities have warned about a possible third wave to raise awareness that the pandemic is not over. Among the actions that companies can take, in addition to the basic prevention measures, is to continue to restrict face-to-face visits of external personnel to the company, continue to prohibit group meetings, especially in closed places, and continue to promote the use of digital tools for as many work transactions as possible.

ALVARO GARCIA

PUBLIC AFFAIRS

HR, Vice President

FRIENDLY REMINDER: KEEP COMMUNICATING WITH YOUR TEAM TO STAY SAFE

YOELLE ROJAS Public Affairs & Communications Director

Holidays are at the corner. After more than one year of pandemic, people are getting relaxed; airports and tourist places are crowded. Now more than ever, keep communicating with your staff. Reinforce your communication concerning preventive measures. Use all your communication channels for this purpose. Since the beginning of the pandemic, we’ve witnessed how companies with a good communication strategy about preventive measures have lower infection cases and a good productivity rate than those that have not implemented a communication plan. In our experience, the companies using Social Media as a communication channel with their team have experience more commitment to preventive measures and are ambassadors with their communities on how to be safe. If you want to know more about how Social Media can be your best ally to keep your people safe, contact us.