GENERAL SITUATION IN MEXICO
Weekly Review # 67 I August 11, 2021
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MANUFACTURING INDUSTRY MEXICO LEAVES CHINA BEHIND IN THE U.S. AUTO PARTS MARKET Mexico strengthened its position as the main auto parts supplier to the United States, with a 37.3% market share in the world’s largest economy from January to May -almost ten percentage points more than in 2007-. Also, representing four times more sales than its closest competitor, China, which still accounts for 9.9% of U.S. imports, the same as in 2007. Mexico imported 11,439 million dollars in auto parts from the United States, representing 51.3% of its total purchases of parts and components, while China imported 3,321 million dollars, with 14.9%; another 1,337 million dollars of Japanese origin with 6% of purchases. In addition to 1,315 million dollars from South Korea and another similar amount from Germany. Within the industry’s total production, Mexico sent 89.9% of its production value to the United States during the
first five months, equivalent to 29.395 billion dollars, to supply 16 light car plants in the U.S. market. Over the last 14 years, Mexico’s share as a U.S. supplier of light vehicle parts and components has increased by 9.64 percentage points. While in 2007 it contributed 27.64% of U.S. imports, in 2021, it reached 37.32% of those foreign purchases. The main auto parts sent by the Mexican industry to the northern neighbor are harnesses, wires and cables, gearboxes and their parts, brake mechanisms, internal combustion engines, lighting or visual signaling devices, air conditioning devices, die-cut parts and bodywork accessories, axles with differential and their parts, airbags and seat belts, and others.
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MANUFACTURING INDUSTRY
SPECIALIZED OUTSOURCING, A NEW MARKET THAT ENTERS FULL SWING IN SEPTEMBER Companies that intend to incorporate specialized outsourcing services into their organizations will have a wide range of options. Despite the prohibition established by the reform on the subject, large corporations have complied with the new provisions and today offer services in various areas. Thus, it is possible to locate services in Production and Transformation, Health, Logistics, Engineering, and Construction, Administration, Promotion and Sales; or Administrative Services, Technology, Customer Service, Trade Marketing and General Services. Specialized services will open employment opportunities with updated profiles such as: • Finance Support • Human Resources • Accounting • Legal • Project management • Controlling • Marketing • Communication Management Even though there are companies that hire their workers directly, others are waiting for their personnel suppliers to be registered with the Ministry of Labor and Social Welfare (STPS) to continue offering their services in compliance with the reform. Companies such as ManpowerGroup, Adecco, or PAE have received authorizations from the STPS and see the opportunity to offer better-prepared talent as specialized companies will be a job opportunity for those with cognitive skills, creativity, the ability to process complex information, and adaptation and empathy.
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GOOD NEWS
THE UNITED STATES WILL SEND 8.5 MILLION ADDITIONAL VACCINES TO MEXICO This month, the U.S. government committed to Mexico to donate 8.5 million vaccines from Moderna and AstraZeneca laboratories, informed Foreign Minister Marcelo Ebrard. These were part of the agreements discussed between President Andres Manuel Lopez Obrador and the Vice President of the United States, Kamala Harris. According to the Secretary of Foreign Affairs, Joe Biden’s administration will send 3.5 million doses of the COVID-19 vaccine from the Moderna laboratory, still awaiting authorization from Cofepris to apply its antigen in the country.
SOURCE: Forbes
From British laboratory AstraZeneca, the United States will send up to 8.5 million doses, scheduled to arrive in Mexico throughout this month. Marcelo Ebrard announced that Mexico promoted at the G20 the recognition by all countries of the vaccines approved by the World Health Organization (WHO) to strengthen the recovery of the world economy. This request will also include vaccines produced by developing countries such as Cuba and its immunizer “Abdala” or Mexico, with “Patria.” Additionally, all the countries will be asked to recognize the people who have been inoculated with a full schedule of vaccines approved by emergency.
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KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference August 4-10, 2021
COVID-19 PLAN The Undersecretary of Prevention and Health Promotion, Hugo Lopez Gatell, reported that 73 million doses had been applied and 57% of the adult population is already protected, in which 54% are already complete schemes, and 46% are recently started schemes. The President pointed out that no later than a month, the complete vaccination scheme will be achieved throughout the border for those over 18 years of age. INTEROCEANIC CORRIDOR OF THE ISTHMUS Asked about the project, the President commented that it is a comprehensive plan, which will be accompanied by social programs that reach all municipalities in the country. In addition, it will be complemented by the industrial parks in the region, where tax subsidies will be granted to make them attractive, such as charging half the VAT and ISR. Regarding the Port of Manzanillo, he said that it has the most traffic, surpassing Veracruz. Regarding Asia, he indicated that the Port has not been successful for a long time, but trade with this region is different.
SOURCE: https://www.youtube.com/channel/UCxEgOKuI-n-WOJaNcisHvSg
GOVERNMENT OF MEXICO SUE FOR DAMAGES TO MANUFACTURERS AND DEALERS OF ARMS IN THE UNITED STATES He declared that the action will have its course in that country and that it is attached to the law since it directly affects Mexico that there is no control in the sale of these products since many reach the hands of organized crime, and even they are produced in a special way for them. SITUATION IN VENEZUELA At the proposal of the Norwegian authorities, the President of the Republic ratified that Mexico will host the official government of Venezuela and the opposition to hold roundtables and find a solution to the conflict.
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KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference August 4-10, 2021
RETURN TO CLASSES The President reiterated the importance of children returning to face-to-face classes. Returning to classes will be optional, respecting the decision of some parents. Mexico is one of the countries that has maintained the closure of schools for the longest time, so it is imperative to begin to return. AGENDA WITH US The Secretary of Foreign Relations, Marcelo Ebrard, explained that there was a call with US Vice President Kamala Harris, where they discussed the shipment of Moderna and AstraZeneca vaccines in August, the migration strategy, and the economic recovery plan for the region. He reported that during this week, there will be a meeting with eight senior US officials in order to discuss the migration strategy; the acceleration of economic growth in both countries, mainly in the south of the country. In addition, start working for the preparation of both countries in the technological changes that come. The President indicated that both countries are willing and interested to advance in the total opening of the border, but for this, complying with the vaccination scheme is key.
SOURCE: https://www.youtube.com/channel/UCxEgOKuI-n-WOJaNcisHvSg
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MEASURES TAKEN BY STATES IN MEXICO
BAJA CALIFORNIA Baja California’s Health Secretary mentioned that with the new Delta variant, COVID-19 cases continued to increase in the past weeks, causing the state of Baja California to turn this week to a medium-risk or yellow light. Official reports confirmed that are currently 776 active cases with hospital occupancy at 43.32%. The vaccine plan continues this week, applying the complete vaccination scheme to pregnant women and applying the second dose of Astra Zeneca to the adult population. Baja California’s Health Secretary reported that Baja California received 65,200 Astra Zeneca vaccines to complete vaccination schemes. The percentage of the population with a complete vaccination scheme increased to 75.47% in the past week.
SONORA COVID-19 cases continued on the rise in the past weeks. The vast majority of Sonora’s municipalities changed to high-risk tier or orange light, five municipalities in the maximum-risk tier or red light, four municipalities in the medium-risk tier or yellow light, and only one municipality out of 72 in the lowrisk tier or green light. Official reports confirmed that are currently 2,258 active COVID-19 cases and 369 hospitalized patients. 375 new confirmed cases were reported in the past 24 hours. The Sonora’s Health Secretary informed that a vaccination certificate or negative test for COVID-19 will be requested in stores and recreational activities starting next week. He reminded the population of the importance of being vaccinated against the virus continue with the practice of health protocols.
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MEASURES TAKEN BY STATES IN MEXICO
COAHUILA In this phase of the pandemic, the governor of Coahuila, Miguel Angel Riquelme Solis, announced that he will issue a new decree to ratify the health protocols to reduce the risk of contagion COVID-19. He spoke about the application of fines for those who carry out events without sanitary protocols and face masks. TAMAULIPAS In Tamaulipas, there are already 20 cities on a red traffic light due to COVID-19 risk, as reported by the state Ministry of Health, after again modifying the level of transmission by municipalities. NUEVO LEON The State Health Secretariat announced the closure of bars and canteens, clubs and nightclubs, concerts, and music festivals, starting on Monday, August 9. The announcement was made by Health Secretary Manuel de la O Cavazos and Roberto Russildi, Secretary of Economy and Labor, after the increase of infections, hospitalizations, and deaths from COVID-19.
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MEASURES TAKEN BY STATES IN MEXICO
QUERETARO The Ministry of Health reported that because of Covid-19, 524 people were infected during the weekend. In total, there are 74,889 cases and 4,975 deaths. In the last three days, 18 people died from the Covid-19 virus. From Saturday 6 to Monday, August 9, the contagion of 524 people was registered, of which 285 women and 239 men. There are also 199 hospitalized patients; 80 of them are seriously ill. Therefore, hospital occupancy is 31% occupancy of beds with a fan and 46% in beds without a fan. While with mild symptoms, isolation, and management at home, there are 809 patients, and there are 68,906 discharges.
AGUASCALIENTES The Ministry of Health of Aguascalientes, Miguel Angel Piza, confirmed that the Delta variant of coronavirus is already circulating in the state. This is due to the increase in positive cases that have been registered in recent weeks in which it happened in a single week from 256 to 450. Miguel Ángel Piza said that the increase in covid-19 cases was of that size “surely because we already have the variant circulating.” He stressed that the health sector is beginning with the reconversion of hospital spaces and with the incorporation of medical personnel who, during the most important peaks of the pandemic, were directly working in the Covid areas. The Governor of Aguascalientes, Martín Orozco, indicated that although today there are more people hospitalized, the state health system has room to grow and that if the indicators at the moment appear that a hospital is saturated. It is not with the same number of beds as in the highest peak in the state.
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MEASURES TAKEN BY STATES IN MEXICO
GUANAJUATO The number of people hospitalized in the state for Covid-19 is 139, of which 116 are in clinical units of the Institute of Public Health of the State of Guanajuato (ISAPEG). There are four hospitalized in the medical units of the Mexican Institute of Social Security (IMSS) and the Institute of Social Security and Services for State Workers (ISSSTE), respectively. Inside the Bajio Regional Hospital of High Specialty and in the SEDENA clinics, there are eight people in this state. Currently, 28 people are waiting for it to be confirmed that they have SARS-COV2. The exact status of the 67 men and 72 women hospitalized for coronavirus is unknown. However, the SSG specified that at least 15 of them are stable, 97 serious as well as 27 critics, primarily young, among them a baby with less than two years old, nine young people between 20 and 29 years old, 21 adults between 30 and 39 years old, as well as 38 Guanajuatoans between 40 and 49 years old.
JALISCO With data until August 10, although it has not yet reached the levels registered at the beginning of the year, the number of deaths caused by COVID-19 in Jalisco increased, with 281 deaths reported during epidemiological week 31, corresponding to August 1. It is the highest report in 24 weeks, only surpassed by what was registered in January and February. Researcher Victor Gonzalez Romero explained that the age of the victims of the virus has dropped, and they are currently on average 59 years old, when a year ago, the most affected were the elderly. “We see that the vaccine has worked by looking at the death-by-age data. A year ago, the average age of the deceased was 65 years old, and now the average has dropped to 59. A year ago, those under 30 years old represented 0.6% of deaths, it did not even reach one percent, but they represent 4% this year. There are fewer deaths among older adults, and the fatalities are now younger”, he said.
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MEASURES TAKEN BY STATES IN MEXICO
STATE OF MEXICO The State of Mexico changed to orange color as cases of contagion and deaths continue to increase. The states with the highest number of deaths continue to be the State of Mexico with 38,842 and Mexico City with 36,171.
CDMX While federal health authorities determined last week that Mexico City would turn red in the epidemiological traffic light, Governor Claudia Scheinbaum indicated that the color would be orange. Given this discrepancy, President AMLO pointed out during his morning press conference that each state decides the color in which it is located. Therefore, Mexico City should be in orange this week and the following. However, due to the new criteria presented by the health authorities, the color of the traffic light will no longer lead to restrictions on socio-economic activities. It will be an indication for the population to take the measures it deems appropriate. In this sense, classes will be resumed, even if the color of the traffic light changes to red.
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VACCINATION PROGRESS
As of August 8, 72,488,230 doses have been applied in all Mexico since December 24, of which 27,502,230 have the complete scheme. Mexico City, Quintana Roo, Baja California, Baja California Sur, Sinaloa, Chihuahua, Aguascalientes, Zacatecas, Yucatan and Tamaulipas occupy the top 10 places in adult vaccination coverage with percentages ranging from 65 to 86 percent. Mexico has received 26 million 093 thousand 535 doses from Pfizer BioNTech; 32 million 845 thousand 200 from AstraZeneca; 20 million from Sinovac; four million 500 thousand doses from the National Center for Epidemiology and Microbiology Gamaleya; six million 448 thousand 310 from Cansino and one million 350 thousand from Johnson and Johnson.
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TOWARDS THE “NEW NORMAL”
DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC
INFORMATION UPDATED ON AUGUST 9, 2021 AT 19:00 HRS LOCAL TIME.
NEW CASES REPORTED: 6,513
SOURCE: https://www.gob.mx/salud/
CONFIRMED CASES: 2,978,330
NEW DEATHS REPORTED: 270
CONFIRMED DEATHS: 244,690
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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 97.59
0 to 10.0 (0 states)
40.1 to 50 (3 states)
10.1 to 20 (1 states)
50.1 to 60 (2 states)
20.1 to 30 (2 states)
60.1 to 70 (5 states)
30.1 to 40 (1 states)
>70 (18 states)
Elaborated by Prodensa with information from the Health Ministry of Mexico
PANDEMIC’S SITUATION IN THE WORLD • As of August 9, 2021, globally there have been reported confirmed 202,608,306 cases (461,377 new cases) of COVID-19 and 4,293,591 deaths (8,170 new deaths*). Lethal rate: 2.1%. • In the last 14 days, the number of new cases accounts for 4% (8,366,255) 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 AUGUST 10
DEATH INCIDENTS IN POPULATION BY REGION AS OF AUGUST 10
SOURCE: https://www.gob.mx/salud/
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EHS
RECOMMENDATIONS DELTA VARIANT: WHAT WE KNOW ABOUT THE SCIENCE
At the end of July 2021, the government released updated guidance on the need for urgently increasing COVID-19 vaccination coverage and a recommendation for everyone in areas of substantial or high transmission to wear a mask in public indoor places, even if they are fully vaccinated. The government issued this new guidance due to several concerning developments and newly emerging data signals. First is a reversal in the downward trajectory of cases. In the days leading up to our guidance update, the govr¡ernment saw a rapid and alarming rise in the country’s COVID case and hospitalization rates. In late July, our 7-day moving average of cases increased drastically. This case rate looked more like the rate of cases we had seen before the vaccine was widely available. Second, new data emerged that the Delta variant was more infectious and was leading to increased transmissibility compared to other variants, even in vaccinated individuals. This includes recently published data from scientists and our public health partners, unpublished surveillance data that will be publicly available in the coming weeks, and ongoing outbreak investigations linked to the Delta variant. Delta is currently the predominant strain of the virus in Mexico. Below is a high-level summary of what scientists have recently learned about the Delta variant. More information will be made available when more data are published or released in other formats.
DAVID ANTUNEZ Environmental, Health, and Safety Director.
COVID-19: COMMUNICATION CONTENT TO PREVENT CONTAGION
YOELLE ROJAS Public Affairs & Communications Director
We are experiencing a large spread of COVID-19. We must prevent the contagion and keep our teams informed about the health risks and the measures to avoid the contagion. There is a lot of content circulating on social media, and we must be selective on what to share within our companies. Communication is key to mitigating spread and reducing the number of infected people. According to the World Health Organization, these are the main messages we should share within our companies: • Protect yourself and others. How? Keep spreading the message of using a mask in public spaces. • Encourage the vaccination. Give your employees the time to get vaccinated and share with them the vaccination schedule. • Videos about COVID-19. Prepare some videos on how to prevent and deal with COVID. You can post them in your internal communication channels. • Provide your employees with official sources. Share the links of official sources on parenting, studying, and mental health during the pandemic. Are you willing to explore new communication channels? We can help you with our expertise in communication during the pandemic. Let us be your partner through this journey.
PUBLIC AFFAIRS
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LABOR
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REMOTE WORK The epidemic risk level in several states of the country, because they are on maximum alert, is once again forcing companies to encourage remote work as much as possible. This circumstance causes workers to return to confinement once again, both personally and at work. The new confinement may be accompanied by high levels of pressure and stress in workers, both at work and in their personal and family environment.
ALVARO GARCIA HR, Vice President
The International Labor Organization (OIT) recently published a guide to help employers promote a better work-life balance for their employees. The guide can be consulted directly on the OIT website and can serve as a simple tool for companies but of great benefit to workers.
BASIC PROTECTIVE MEASURES AGAINST COVID-19
1 2 3 4 5 Wash your hands frequently with soap and water for 20 seconds.
When coughing or sneezing, cover your nose and mouth with a disposable tissue or use the inside corner of your arm.
Avoid shaking hands and kissing.
Keep your workspace clean and don't share personal items and utensils.
If you show symptoms of a cold or flu, go to a doctor. Do not self-medicate and inform your supervisor and Human Resources department.
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