December 20, 2019
1. Raquel Buenrrostro appointed head of the federal tax office
President Andrés Manuel López Obrador appointed Raquel Buenrrostro as head of the Tax Administration Service (SAT). Buenrrostro is currently Senior Officer of the Ministry of Finance and Public Credit (SHCP) and will be replacing Margarita Ríos-Farjat. Additionally, Thalía Lagunas Aragón, who currently serves as technical coordinator in the office of the president, will occupy this Buenrrostro’s former position. Both appointments were consulted with the Secretary of the SHCP, Arturo Herrera.
The president emphasized that the new director of the SAT has a prominent role in strategies regarding austerity and the fight against corruption, since she decided to concentrate the purchases of the entire government, which saved more than MXN $200 billion (USD $10.6 billion).
El Financiero: AMLO nombra a Raquel Buenrostro como nueva jefa del SAT
2. USMCA Agreement moves forward in the U.S.
The Tax and Commerce Committee of the U.S. House of Representatives approved modifications on a bill related to the NAFTA replacement, USMCA. The modifications create a mechanism to investigate labor violations, which may be punished with import tariffs or prohibitions.
USMCA also earned approval from the Media and Arbitration Committee, so it has been turned to the House of Representatives where it will be voted on. Since the Senate is currently voting on the impeachment of President Donald Trump, the trade issue will likely remain absent from the legislature’s docket until next year.
El Financiero: T-MEC pasa la primera “prueba” en el Congreso de EU
3. Minimum wage in Mexico to increase by 20% next year
Starting on the first day of 2020, the minimum wage in Mexico will increase by 20%. With this, about 11 million workers will be able to acquire a minimum welfare basket, as defined by the National Council for the Evaluation of Social Development Policy (CONEVAL), which ensures basic family needs are met.
The employees will go from receiving MXN $3,123 (USD $165) a month to MXN $3,747 (USD $198). With this increase, the needs of food, public transport, education, health and recreation may be met. This increase is expected to represent a boost to the national economy, given that the demand for domestic and personal consumption products will increase.
4. President López Obrador presents 10 points to combat national insecurity
The President of Mexico announced 10 measures he promises will guarantee peace at a national level. The president acknowledges that insecurity has been the primary pending item of his administration. Likewise, during his speech at the National Public Security Council, he called on governors to work together for the good of the nation.
Among the most outstanding actions proposed: prohibiting corruption in public security institutions, improving the performance of state and municipal police, having a strengthened National Guard and improving the wages of police officers.
5. Secretary of the Interior transferred resources to a García Luna’s company during presidencies of Fox and Calderón: President
The Financial Intelligence Unit (FIU) detected a transfer from the Ministry of the Interior (Segob) to a company related to the former Secretary of Public Security, Genaro García Luna, who was arrested for his links with drug trafficking, for MXN $2 billion (USD $105.7 million). This transfer allowed to block the accounts of the company of which the former official is a shareholder.
The transfer was made while García Luna served as Secretary of Public Security during the six-year term of former President Felipe Calderón. However, the drug trafficker Jesús ‘El Rey’ Zambada explained that García Luna had been collaborating with drug cartels since 2001 – the presidency of Vicente Fox.