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GENERAL SITUATION IN MEXICO

Weekly Review # 52 I April 28, 2021

CONFIRMED CASES: 2,329,534

NEW CASES REPORTED: 1,143

DEATHS: 215,113

ACCUMULATED DEATHS PER DAY

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

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

Information updated on April 26, 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 1806.23

0 to 500 (1 states) 501 to 1,000 (4 states) 1,001 to 1,500 (12 states) 1,5001 to 2,000 (6 states) >2,000 (9 states)

Elaborated by Prodensa with information from the Health Ministry of Mexico

PANDEMIC’S SITUATION IN THE WORLD • As of April 26 2021, globally there have been reported confirmed 146,841,882 cases (794,573 new cases) of COVID-19 and 3,104,743 deaths (12,470 new deaths*). Lethal rate: 2.1%. • In the last 14 days, the number of new cases accounts for 7% (10,880,358) 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 APRIL 26

DEATH INCIDENTS IN POPULATION BY REGION AS OF APRIL 26

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 April 21-27, 2021

COMMERCIAL INTEGRATION IN NORTH AMERICA The president pointed out that there must be an opening with clear rules and more integration from the United States under terms of equality and respect for sovereignty. “Capital and technology are not enough; the workforce is necessary and essential. Unity means growing as a domestic market”. He stressed that many Americans also think that a productive and social alliance is necessary to strengthen the American continent. NATIONAL ELECTORAL INSTITUTE (INE) The president denied the disappearance of the INE and said that it is required an institution to organize the elections. He insisted that what must be sought is for it to be a professional, impartial, upright, and incorruptible body. PROFIT-SHARING (PTU): The distribution of 10% of the profits of the companies is regularized, and two modalities are created, choosing the one that is most favorable for the worker: • Up to 90 days; or • The average of the last three years With the proposal, 100 billion pesos are increased compared to the current situation.

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

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference April 21-27, 2021 OUTSOURCING President AMLO announced the Decree that amends various provisions of the Federal Labor Law and other regulations on outsourcing and profit-sharing. 8 main points: 1. Outsourcing of personnel is prohibited. 2. The outsourcing of specialized services and works that are not part of the social object and the company’s economic activity is allowed. 3. Mandatory registration of specialized subcontracting companies before the Ministry of Labor (STPS), after accreditation of compliance with labor, social security, and prosecutors. 4. The companies that receive the specialized services must respond to the workers in case of non-compliance. 5. To avoid simulation and tax fraud, the criteria of the Tax Code, the law of the ISR, and the VAT with the Federal Labor Law are now standardized. 6. Sanctions for non-compliance are toughened. 7. Terms of the reform: Once published, the STPS will have one month to issue the guidelines for registering the specialized outsourcing companies. Once the guidelines are published, companies will have three months to be regularized. Every three years, companies will have to update their registration with the STPS. 8. The Federal Law of Workers at the Service of the State is reformed so that there is no longer any outsourcing of personnel in the Federal Government. A diagnostic process will begin in the dependencies to regularize the subcontracted personnel.

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

VACCINATION AND RETURN TO SCHOOL The president mentioned that this week the vaccination of older adults is finished with the application of at least one dose. Progress has also been made in vaccinating educational personnel from the public and private sectors, and the process is almost complete in Nayarit and Veracruz. He commented that Mexico has around 20 million vaccines, ranking twelfth on the international list, led by the United States. LEADERS’ SUMMIT MEETING ON CLIMATE In his participation during the Leaders’ Summit on Climate, President Andres Manuel Lopez Obrador mentioned that: • Three large hydrocarbon deposits have been discovered. • Power plants are and will be modernized. • Sembrando Vida is the greatest reforestation effort in the world. He proposed to expand this program in southeastern Mexico and Central America. • As another proposal, President Lopez Obrador mentioned that the US government could offer that after sowing their lands for 3 consecutive years, they could obtain a temporary visa to work and obtain dual nationality or residency after another three years.

VACCINATION PROGRESS

As of April 26th, 16,501,739 doses had been applied. From this, 5,917,676 have the complete scheme (2 doses). 970,264 doses have been applied to health workers, of which 810, 687 have the complete scheme, 447,186 doses have been applied to teachers and education staff, of which 446,780 have the complete scheme, and 10,636,571 doses have been applied to the elderly population, of which 4,660,780 have the complete scheme.

Pfizer BioNTech 8,649,225 Astra Zeneca 4,664,500 SinoVac 5,000,000 Sputnik V 1,100,000 Cansino 2,697,160

22,110,885 Total doses received since December 23, 2020

MEASURES TAKEN BY STATES IN MEXICO

BAJA CALIFORNIA From April 26th to May 2nd, Baja California continues in the medium risk tier or yellow traffic light. State officials report that there are currently 302 confirmed COVID-19 cases, with a small decrease from last week. Hospital occupancy increased to 25.18%, with 588 hospital beds available and 235 available respirators. According to the previous cut on April 20th, there are 254,727 adults over 60 years old that have been vaccinated, and the second doses are also being applied. Vaccines applied include Pfizer, AstraZeneca, and Sinovac. According to the Health Secretary, Baja California will be one of the first Mexican states to fully vaccine adults over 60 years old. It is estimated that the next group of adults from 50 to 59 years old will start to be vaccinated for the first week of May. This week, the academic sector was also called to receive their first dose of vaccine. To prevent an increase in COVID-19 cases, State Government decided to implement further restrictions to certain sectors, including 50% to gyms and indoor sports activities, 30% for pools, parks, outdoor public places, and beaches.

SONORA The State of Sonora continues to be considered on the medium-risk tier or yellow traffic light, with a decrease in hospitalized COVID-19 patients, with 99 current hospitalized patients, down from 120 last week. It was also reported that 53 patients are considered acutely ill, and 28 critical patients are using respirators. There were also reported 68 new confirmed cases and 1 patient from the municipality of Hermosillo that lost his life in the last 24 hours. The vaccination campaign has continued in most municipalities along with the state as a new shipment of 20,600 AstraZeneca vaccines and 17,550 Pfizer vaccines were received on April 26th, with the goal of applying second doses to adults 60 years and older. Starting on April 26th, Sonora State Government started a model for in-person schools, with 25% capacity and hybrid activities. This exercise will help define the next stages of in-person classes, beginning in the following months.

MEASURES TAKEN BY STATES IN MEXICO

COAHUILA The Ministry of Health of Coahuila successfully concluded the vaccination process for the teaching sector, applying 71,854 doses over five days. Only about 15 cases of teachers presented slight discomfort, most of them caused by stress or fear of the vaccine reaction. TAMAULIPAS The next group to be vaccinated against COVID-19 will be those between 50 and 59 years of age, which in Tamaulipas comprises about 380 thousand inhabitants, and most of them are women. The Ministry of Health of the federal government has contemplated starting in May the vaccination against the coronavirus for people between 50 and 59. It has been insisted that the vaccination for older adults should conclude on April 30. This block of 50 to 59 years is one of the highest risks in the current pandemic, as specified by the Mexican Association of Insurance Institutions (Amis).

NUEVO LEON As part of a requirement for children and teenagers to return to face-toface classes, the federal and state governments announced the application of the COVID-19 vaccine for educational personnel. The vaccination began in Nuevo Leon on Tuesday, April 27, and it is expected that more than 128 thousand teachers will be vaccinated in the state.

MEASURES TAKEN BY STATES IN MEXICO

JALISCO Jalisco’s Ministry of Health confirmed 389 new confirmed cases, reaching 241 thousand 807 accumulated cases of the COVID-19 disease in the entity. In addition, a death was reported in the entity with a total of 11,590 deaths during the health contingency that continues more than a year after the containment measures have been implemented. Deaths are concentrated in metropolitan municipalities such as Guadalajara (4,433), Zapopan (1,724), Tlaquepaque (929), Tonala (587) and Tlajomulco de Zuñiga (587). On April 20, began the vaccination day for older adults in Tonala who will receive the second dose of the biological against COVID-19. For its part, the Jalisco Ministry of Health reiterated that this time the vaccine will only be applied to those who come for their second dose, so it will be required to show proof of the first vaccine and the INE credential.

QUERETARO This Monday, April 26, in Queretaro, 186 new cases of COVID-19 were added. The accumulated record is 65,891 cases of COVID-19; 51% are women, and 49% are men. The report of the State’s Ministry of Health states that 160 patients were discharged from the health system, resulting in a total of 60,769 people recovered. There are 403 patients with mild symptomatology, isolation, and management at home and nine in the COVID-19 Medical Isolation Unit. There are 117 hospitalized patients, 44 of whom are seriously ill, and 4,593 deaths have been recorded. Concerning the availability of general hospitalization beds and beds with ventilators in the state, with information as of April 25, 2021, there is an occupancy rate of 12 percent, based on the Acute Respiratory Infection Negative Network (IRAG). Queretaro has a 17% occupancy rate for beds with ventilator and 11% for beds without a ventilator.

MEASURES TAKEN BY STATES IN MEXICO

GUANAJUATO Guanajuato’s Ministry of Health determined that it will remain in the “yellow with alert” traffic light, although its federal counterpart placed it among the entities that went to green. The general coordinator of state health services, Moises Andrade Quezada, stated that the state is at moderate epidemic risk. Consequently, from April 26 to May 2, the traffic light will remain yellow with an alert to continue with all the measures and habits that have been acquired over time. Also, to continue having the opportunity of movement and normality, but with restrictions. “Hopefully, we will comply with all this as we have been doing so far, so that very soon it will be the case that in the effort and opportunity of all of us as citizens, we will be able to turn to the. In recent days, the Ministry of Health has reported the detection of 41 Covid variants, including Brazilian (2), English (2), Californian (13), and 25 unidentified variants. This week, the number of people who tested positive for COVID-19 in Guanajuato was 102 after receiving one of the two doses of the vaccine against the virus. Dr. Luis Carlos Zuñiga Duran, General Director against sanitary risks, informed that none of these people required hospitalization, nor was their life in danger. In the “the disease has been mild,” he said. He emphasized that the vaccine does not provide 100 percent immunity, but it protects against serious cases to not die from the disease.

AGUASCALIENTES Vaccination of educational personnel, including teachers and administrative workers, begins this Tuesday in Aguascalientes, Baja California, Jalisco, Nuevo Leon, and Oaxaca informed Delfina Gomez, Secretary of Public Education (SEP). According to the presentation made this Tuesday by the official, the application of vaccines against COVID-19 in these states will take place from April 27 to 28, according to the presentation made this Tuesday. The State’s Ministry of Health reported 40 new confirmed cases of COVID-19 and the death of 10 people due to serious complications caused by the virus. With the above, the number of infections is 21,454 with 333 active cases; on the other hand, 58 people are waiting to receive a result. The epidemiological report issued by the Institute of Health Services of the State of Aguascalientes (Issea) indicates that 75,868 PCR tests have been processed in the state, of which 54,356 were negative for coronavirus representing about 72%.

MEASURES TAKEN BY STATES IN MEXICO

STATE OF MEXICO Through a video posted on Twitter, the state Governor reported that the state turned to yellow light of the epidemiological traffic light thanks to the progress of the vaccination program.

CDMX In Mexico City, it is estimated that there are up to 450,000 education workers at all levels, including teachers, managers, and administrative staff, who could be vaccinated within a week, said the head of the capital’s government.

MANUFACTURING INDUSTRY OUTSOURCING REFORM BEGINS IMPLEMENTATION ROUTE; THESE ARE THE DATES. In the last week of April, the deadlines to implement the outsourcing reform that regulates the outsourcing of specialized services and prohibits outsourcing schemes based on the supply of personnel began to run. The outsourcing of personnel, understood as the supply of workers from one company for the benefit of another is an activity considered illegal and with both administrative and criminal repercussions as of April 24. In that sense, no company may sign a new contract for this hiring scheme. The new regime for which eight legal ordinances were reformed established different transition terms, among them, for the regularization of companies that currently have a personnel supply scheme. These are the transition events and the deadlines to carry them out: May 2021 • The Ministry of Labor and Social Welfare (STPS) must put into operation the registry of specialized services subcontracting companies, with the general provisions for this procedure (deadline, May 24). June 2021 • The National Workers’ Housing Fund Institute (Infonavit) will issue the rules to be followed by subcontracting companies for the submission of four-monthly reports on the contracts performed and the salaries of their workers, among other data, these reports will be submitted in January, May, and September of each year (deadline, June 23).

MANUFACTURING INDUSTRY

July 2021 • Companies with labor outsourcing schemes, either through insourcing or personnel transfer mechanisms, must transfer to their payrolls the workers of the other company, without the condition of transferring assets, but recognizing the labor rights of the collaborators, such as seniority (deadline, July 23). • Companies subcontracting services and specialized works must begin to file with the Mexican Social Security Institute (IMSS) reports on their contracts and the conditions of their personnel, which must be shared quarterly in January, May, and September of each year (as of July 23). • Companies in the transition period must request the cancellation before the IMSS of the employer registrations by class and the assignment of a new one (deadline, July 23).

August 2021 • Deadline for service and specialized works companies to obtain registration with the STPS to operate under the new rules. Businesses have 90 calendar days to comply with the procedure from the date of publication of the guidelines by the agency (deadline, August 22). January 2022 • The federal government must incorporate subcontracted workers into its payroll within the authorized expenditure for the fiscal year (as of January 1). The new regulatory framework contemplates fines for non-compliance, the highest of which can be up to 4 million 481,000 pesos for those who benefit from outsourcing personnel (up to 50,000 UMAs) and up to three years in prison for the crime of tax fraud.

GOOD NEWS U.S. VACCINE ASSISTANCE ALONG THE BORDER IS IMPORTANT, MEXICAN OFFICIAL SAYS Mexico is ramping up requests for more COVID-19 vaccines from the United States, and in the coming days may ask for assistance vaccinating people along the countries’ shared border, the Mexican government official in charge of vaccine diplomacy said. Mexico has received 2.7 million doses of AstraZeneca’s (AZN.L) COVID-19 vaccine from the United States, but has not progressed on accessing larger U.S. stocks, deputy foreign minister for multilateral affairs Martha Delgado said in an interview last week. “We are once again taking up dialogue to insist on this need,” she said, ahead of an upcoming visit by Foreign Minister Marcelo Ebrard to the United States.

regulators after operations were halted at the U.S. plant that produced them due to contamination.

Mexico may also put forward a proposal to prioritize vaccination along its border with the United States, Delgado said, describing the issue as important and concern in Mexico.

Ebrard will also make trips to Russia, China, and India, as part of efforts to ensure supply agreements are honored.

The proximity and human ties between the densely populated cities along the border make it easy for the coronavirus to re-infect both countries.

Part of his agenda in the United States will be devoted to vaccines, including “scientific exchange,” Delgado said.

The U.S.-Mexico border region, which stretches 3,175 km (1,973 miles), is home to at least 14.6 million people, according to government data from 2018.

Mexico has so far received more than 21 million shots, primarily from Pfizer, AstraZeneca, China’s Sinovac and Cansino, and Russia’s Sputnik V.

The supply of vaccines has become a global diplomatic tussle.

But delivery delays and supply shortages have slowed the campaign to vaccinate its 126 million people.

Mexico government officials on Friday declared the doses of AstraZeneca’s vaccine shipped from the United States safe and approved by two health

Mexico was considering hosting Phase III trials for an additional Chinese vaccine, Delgado said. She declined to say which one.

SOURCE: REUTERS

EHS

RECOMMENDATIONS SAFER TRAVEL RECOMMENDATIONS TRANSPORTATION During car travel, making stops along the way for gas, food, or bathroom breaks can put you and your traveling companions in close contact with other people and frequently touched surfaces. If traveling in a Recreational vehicle (RV), you may have to stop less often for food or bathroom breaks, but you could still be in close contact with others while staying at parks overnight and while getting gas and supplies. Traveling on buses for any length of time can involve sitting or standing within 6 feet/2 meters of others, which may increase your risk of getting COVID-19. If you choose to travel by bus, learn what you can do to protect yourself on public transportation. Air travel requires spending time in security lines and airport terminals, bringing you in close contact with other people and frequently touched surfaces. Most viruses and other germs do not spread easily on flights because of how air circulates and is filtered on airplanes. However, keeping your distance is difficult on crowded flights, and sitting within 6 feet/2 meters of others, sometimes for hours, may make you more likely to get COVID-19. SAFER • Short road trips with members of your household or fully vaccinated people with few stops along the way • If you must fly, try to take flights with the fewest stops or layovers LESS SAFE • Longer trips by car or RV with many stops along the way • Trips by car or RV with people who are not vaccinated or not from your household • Flights with layovers AVOID • Long-distance train or bus trips • Traveling on a cruise ship or riverboat

DAVID ANTUNEZ Environmental, Health, and Safety Director.

LABOR

NEW PROVISIONS FOR OUTSOURCING IN MEXICO Starting Saturday, April 24, 2021, new rules for outsourcing apply in Mexico. In the previous days, both chambers of the Mexican congress approved the presidential bill that bans outsourcing of personnel. The new law was published last Friday in the official gazette to enter into force the day after its publication. Major changes: • The new regulation prohibits outsourcing of direct workers and direct personnel. • Outsourcing of specialized services is allowed (as long as the services to be rendered are not part of the company’s main economic activity or corporate purpose as described in the company’s by laws). • New rules for profit-sharing have been added to the law. • Labor law now sets higher economic sanctions for companies not complying with the new outsourcing regulations. • In addition to the labor changes, there are also new fiscal implications.

ALVARO GARCIA HR, Vice President

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