Weekly Report 62

GENERAL SITUATION IN MEXICO

Weekly Review # 62 I July 7, 2021

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MANUFACTURING INDUSTRY U.S. BUSINESSMEN ASK FOR RESPECT FOR ENERGY INVESTMENTS IN MEXICO U.S. businessmen asked the Mexican government to respect the investments made in energy matters since the recent modifications to the General Foreign Trade Rules ─which privilege CFE and Pemex─ seriously affect the development, promotion, and operation of fuel supply chains, which include some in the National Development Plan, competitiveness and regional integration with North America.

The American Chamber of Mexico (AmCham) expressed, “We view with concern the recent changes established in the General Foreign Trade Rules for 2020. Particularly, rule 2.4.1, which went into effect on June 12 of this year, prohibits private companies from importing and exporting hydrocarbons in a different location than the authorized one. The modifications to the General Foreign Trade Rules seriously affect the energy sector, infrastructure projects”.

Said modification to the Foreign Trade Rules is added to other regulatory changes that, in recent months, have impacted regulatory certainty and the viability of the business plans of companies that invest with a long-term horizon in the country, reproached the private organization.

U.S. businessmen operating in Mexico explained that among the factors of the uncertainty of the modifications to the rules is that it significantly restricts the options of the private sector to import petrochemicals and hydrocarbons to Mexico, eliminating the maritime option in terminals located outside the ports, which is the most competitive transportation after the pipelines.

“This will have a significant impact on the prices of fuels and other products in the food and pharmaceutical sector, among others, mainly affecting the final consumer’s pocket. It may even directly affect Pemex’s costs and logistics,” he said.

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MANUFACTURING INDUSTRY

UNITED STATES HAS A CRUCIAL INTEREST IN LABOR REFORM IMPLEMENTATION: STPS “There is a crucial interest on the part of the United States in the implementation of the reform,” expressed Luisa Maria Alcalde Lujan, head of the Ministry of Labor and Social Welfare (STPS), during a tour in Durango, where she also highlighted the support of the main trading partner with resources for training and technological infrastructure for an effective transition to the new labor model.

With the additional 130 million dollars promised by the Vice President of the United States, Kamala Harris, in her visit to Mexico, the neighboring country will have allocated a total of 210 million dollars to the implementation of the 2019 reform for the new model of labor justice, union democracy, and collective union.

Luisa Maria Alcalde affirmed that the STPS will maintain dialogue with the U.S. government to analyze the ways in which the entities can be supported in the evolution to the new mechanism for labor dispute resolution and unionism with the authentic collective union and democratic principles such as free, secret, direct and personal vote.

“The United States is supporting in different areas, a lot in training and this has allowed the new operators of the model to access, for example, the issue of conciliation, where there is a lot of experience in the United States.

Also in technological infrastructure,” said the official at a press conference.

The 2019 labor reform is the basis for a dispute resolution mechanism with an important bet on conciliation for prompt and expeditious justice. Within this framework, the Federal Center for Conciliation and Labor Registry was created, and the entities will have local conciliation centers; the federal and local labor courts close the pincer of this new model.

In this sense, Alcalde Luján highlighted that so far, the new labor justice system is managing to resolve 85% of the conflicts through conciliation (less than 45 days), and only 15% of the cases go to trial in court, with a sentence being issued in less than three months.

These times imply a significant reduction compared to the average of three years that the Conciliation and Arbitration Boards used to have for resolutions. “The new justice model is giving results,” she added.

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GOOD NEWS

MEXICO PROPOSES REOPENING THE BORDER WITH THE U.S. CITY BY CITY DEPENDING ON VACCINATION RATES

The Mexican government has proposed to the United States a staggered reopening of the shared U.S.-Mexico land border city by city depending on vaccination rates, Mexico’s foreign minister Marcelo Ebrard said on Tuesday.

U.S. land borders with Canada and Mexico will remain closed to non-essential travel until at least July 21, the U.S. Homeland Security Department said last month, extending restrictions that were put in place last year because of the coronavirus pandemic.

SOURCE: Reuters

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KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference June 30-July 6, 2021

VACCINATION Dr. Hugo Lopez-Gatell, Undersecretary of Prevention and Health Promotion, announced that as of July 6, all adults over 18 years of age will be able to register on the government website to be vaccinated. He added that it will also be possible to download a vaccination certificate. President Lopez Obrador stressed that vaccination has helped reduce mortality.

ASPIRANTS TO THE PRESIDENCY To express questions about the possible nomination of Zoe Robledo, General Director of the IMSS, as well as Dr. Hugo Lopez Gatell, Undersecretary of Health, for the presidency, the President pointed out that on the liberal progressive flank, there are many candidates. He mentioned other names such as Claudia Sheinbaum, Marcelo Ebrard, Juan Ramon de la Fuente, Esteban Moctezuma, Tatiana Clouthier and Rocio Nahle. He commented that he will have a substitute once he retires from the presidency. He indicated that he does not intend to be reelected and retire in September 2024, specifying that he will not participate in politics again after this date.

NEW CHALLENGES IN THE FEDERAL ADMINISTRATION The President commented that work will be done on constructing a solar electric power generation park, an initiative of the new governor of Sonora, Alfonso Durazo. Same that is expected to be completed by the end of 2023 or the beginning of 2024.

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

“WHO’S WHO” IN THE LIES OF THE WEEK The section “Who’s who” was inaugurated to publicize the disseminated lies in the media to have a conscious opinion, not susceptible to manipulation, and where the truth prevails. He mentioned that ethical journalism should be promoted, and respect for people should be privileged to not lie without consequences. The criteria to present the news are the publications that moved faster in social media or those that tell more misleading content.

The President mentioned the following news as an example: “Mexico contracted 23 million vaccines with a fake company.” He mentioned that the language of the report draws attention, saying that Cansino is very controversial. He explained that this issue has nothing to do with the Government of the Republic.

MEETING WITH US SENATORS. Lopez Obrador reported that United States senators asked him to give his opinion on various areas. He pointed out that topics related to the region’s development, the labor issue, investment, and the domestic market were discussed. He added that the USMCA was also discussed, highlighting that the American senators were convinced of the importance of the agreement.

He indicated that there was a talk about reopening the border as soon as possible.

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MEASURES TAKEN

BY STATES IN MEXICO

COAHUILA The Governor of the State announced that the hospital occupancy of Covid-19 patients fell to 2 percent. In addition, there is a record of more than a million citizens who have been immunized with the coronavirus vaccine. This has caused an increase in the mobility of the inhabitants of Coahuila, becoming the entity with more mobility of people in the country.

TAMAULIPAS The Ministry of Health determined that Tamaulipas will remain orange in the Epidemiological Traffic Light due to COVID-19 infections. From Monday, July 5 to next Sunday, July 18, the entity will be in orange at the Epidemic Risk Traffic Light.

NUEVO LEON As of July 1, the application of vaccines against covid of the age group of 30 to 39 began in 6 different municipalities, among them Abasolo, Hidalgo, Mina, Parás, Vallecillo, and Lampazos. In addition, people from 40 to 49 will be vaccinated against the virus, second doses for people from 50 to 59, pregnant women, and laggards, depending on the age group that corresponds to each municipality.

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MEASURES TAKEN

BY STATES IN MEXICO

JALISCO Due to the confirmed arrival in Jalisco of the Delta variant of the new coronavirus, the State Government plans to reinforce the strategy against COVID-19 with more tests, restructuring of vaccination, and supervision of measures in bars and nightclubs. The Ministry of Health of Jalisco (SSJ) announced that the first infection with this variant was detected in a 33-yearold traveler patient, resident of Zapopan, who arrived in Mexico from India on April 18, 2021. “The transmissibility rate, that is, the contagiousness of the virus in its original modality, is 2.5; that of Delta is 8”, the Governor stressed. He also acknowledged that in the last month, the number of active cases (people who can be infected) was 62%, from 779 to 1,264. The number of positive tests and hospitalizations also increased by 64% and 17% in the same period. He emphasized that he will present to the President the petition to make a “recalibration” of the vaccination strategy “to focus it on age groups and places in the territory, according to the needs of Jalisco.”

He also highlighted that he will reinforce the number of tests to perform epidemiological tracking and search. “The use of the mouth cover is the difference between life and death. We have to go back to complying with the protocols”. He emphasized that he called today for an urgent meeting with the bars and nightclubs sector, where the problem is concentrated.

AGUASCALIENTES Aguascalientes registered 11 more cases and 4 deaths due to COVID-19 on the last day, so the state accumulates 23,151 infections and 3,247 deaths since the beginning of the pandemic. About 88.8% of the total infected patients have already recovered, informed the Ministry of Health. The agency informed that there are 142 active patients with the viral disease, in addition to finding 10 suspected cases; the lethality rate remains at 14.0% in the state, the ninth highest in the country. The municipality of Aguascalientes has 18,947 cases of COVID-19, followed

by Jesus Maria with 1,072; Rincon de Romos with 618; Pabellon de Arteaga with 536; San Francisco de los Romo with 317; Asientos with 313; Calvillo with 284; Tepezala with 253; Cosío with 212; San Jose de Gracia with 132; and El Llano with 126.

Hospital occupancy remains at minimum levels, with 27 patients admitted to the different hospitals in the state, of which 17 are in serious condition, and 10 are intubated. Hypertension, diabetes, and obesity continue to be the most frequent comorbidities among those who died from COVID-19. ted that 27 Guanajuatenses with at least one vaccine against Covid-19 have already died because they also suffered from another comorbidity.

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MEASURES TAKEN

BY STATES IN MEXICO

GUANAJUATO Vaccination against Covid-19 has already begun for people between 40 and 49 years of age in 19 municipalities in the state, where 219,000 doses are expected to be applied to surpass the 2,400,000 vaccines used in all of Guanajuato. So far, according to the Secretary of Health of Guanajuato, Daniel Alberto Diaz Martinez, one-third of the population of this entity has already received at least one dose against coronavirus.

However, he also specified that there are no more than 800,000 complete vaccinations. On Monday, July 5, 32 vaccination points were established in the 19 municipalities where vaccination began, all of them with first doses, except for Celaya, which has already received its second applications. The municipalities that will apply the AstraZeneca vaccine, with 177,700 doses, are: Dolores Hidalgo, San Felipe, San Jose Iturbide, San Luis de la Paz, San Miguel de Allende, Apaseo el Grande, Cortazar, Salvatierra, Salamanca, Valle de Santiago, Yuriria, Abasolo, Penjamo and San Francisco del Rincon. The single-dose Cansino vaccine, with 4,500 doses, is being applied in the northeastern municipalities: Atarjea, Santa Catarina, Tierra Blanca, and Xichu; and finally, Celaya is carrying out second-dose immunization with the Pfizer vaccine (37 thousand 440 doses). He said that so far, there have been no anaphylactic reac-

tions or severe reactions after the vaccination in the people of Guanajuato, so he indicated that “they should not be afraid of the vaccine.” However, there have been fever, body aches, headache, and pain in the area where the vaccine was administered. He also regret QUERETARO From Monday, June 28 to Friday, July 2, there was an increase in the number of infections, which is similar to the number of cases that were reduced in 21 days, a trend that speaks of the contagious capacity of the variants of the virus, said the state’s organizational spokesman, Rafael Lopez Gonzalez. Due to an upward trend in Covid-19 infections during the last week, the state’s organizational spokesperson called the population’s attention and alerted them to maintain active sanitary protocols. The latest report published by the State Health Secretariat states that up to July 2, the state accumulated 69,110 Covid-19 infections (26 on the last day) and 4,814 people who have died from the disease (one on the previous day of the report).

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MEASURES TAKEN

BY STATES IN MEXICO

STATE OF MEXICO The State of Mexico is just below Mexico City for increases in cases and deaths.

Vaccination continues in the State, but experts consider it that it is slowing down.

CDMX Health authorities informed that cases continue to increase, mostly in Mexico City. However, authorities claim that half of its population is already vaccinated.

Occupancy in hospital beds also increased by 20% nationwide.

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VACCINATION PROGRESS

As of July 4, 47,197,494 doses have been applied in all Mexico since December 24, of which 19,829,015 have the complete scheme.

By state, Baja California remains the state with the highest percentage of the vaccinated adult population, followed by Mexico City, Tamaulipas, Yucatan, and Zacatecas.

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TOWARDS THE “NEW NORMAL”

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

INFORMATION UPDATED ON JULY 6, 2021 AT 19:00 HRS LOCAL TIME.

NEW CASES REPORTED: 1,805

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

CONFIRMED CASES: 2,541,873

NEW DEATHS REPORTED: 67

CONFIRMED DEATHS: 233,689

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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.

National rate 30.93

0 to 10.0 (14 states)

40.1 to 50 (3 states)

10.1 to 20 (6 states)

50.1 to 60 (1 states)

20.1 to 30 (3 states)

60.1 to 70 (0 states)

30.1 to 40 (0 states)

>70 (5 states)

Elaborated by Prodensa with information from the Health Ministry of Mexico

PANDEMIC’S SITUATION IN THE WORLD • As of July 5, 2021, globally there have been reported confirmed 183,560,151 cases (362,132 new cases) of COVID-19 and 3,978,581 deaths (6,894 new deaths*). Lethal rate: 3%.

• In the last 14 days, the number of new cases accounts for 3% (5,202,998) of the total of accumulated cases.

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

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

BY REGION AS OF JULY 6

DEATH INCIDENTS IN POPULATION

BY REGION AS OF JULY 6

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

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EHS

RECOMMENDATIONS HOW TO ASSESS AND RESPOND TO POST-VACCINATION SIGNS AND SYMPTOMS IN EMPLOYEES

Signs and Symptoms Could Be from COVID-19 Vaccination, Infection with the Virus That Causes COVID-19, or Another Infection (e.g., Influenza) ANY general symptoms (e.g., fever (100°F/ 37.8°C or higher), fatigue, headache, chills, and body aches) Suggested Approach Employees who meet the following criteria may be considered for return to work without testing for COVID-19: • Feel well enough and are willing to work, and • Do NOT have fever, and • Do NOT have other signs and symptoms of COVID-19, including cough, shortness of breath, sore throat, or change in smell or taste.

If symptoms do not improve in 2 days, employees should be excluded from work, and COVID-19 testing should be considered.

Ideally, employees with fever should be excluded from work pending further evaluation, including consideration for COVID-19 testing. If an infection is not suspected or confirmed as the source of their fever, they may return to work when they feel well enough.

In critical infrastructure settings where staffing shortages are anticipated or occurring, employees with fever and only signs and symptoms typical following vaccination can be considered for work if they feel well enough and are willing. If the fever does not resolve in 2 days, these employees should be re-evaluated and considered for COVID-19 testing.

DAVID ANTUNEZ Environmental, Health, and Safety Director.

DATA PRIVACY Since the beginning of the pandemic, and with the appearance of the first infections in the workplace, it became important to maintain confidentiality in the handling of information to protect each employee’s personal and health data. Data privacy, particularly in health issues, is also an element to protect to avoid prejudices and stigmas that usually arise with epidemics. Just as the variants of the virus are now named with a letter of the Greek alphabet to avoid designating them with a nation or country of origin, in companies, we must also designate names or codes to refer to the cases reported to continue taking care of health but without revealing personal data.

ALVARO GARCIA HR, Vice President

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