January 22, 2021
1. Ministry of Economy announces new plan to revive the sector
The head of the Ministry of Economy, Tatiana Clouthier, presented an economic revival plan that includes four axes: domestic market, employment, and businesses; investment promotion and facilitation; international trade, and regionalization of sectors. In joint work with the Ministry of Finance and Public Credit, production chains will be developed, and fiscal stimulus granted.
It also seeks to link large companies with medium and small enterprises. From February, SMEs will have access to 60,000 new funding opportunities of around 25,000 pesos. The restaurant sector will be able to access credits of up to 250,000 pesos. This plan also includes incentives for Foreign Direct Investment, investment related to the USMCA Agreement, increased exports and collaboration with business chambers.
2. Joe Biden is sworn in as President and signs 17 decrees
After being sworn in as President of the United States of America, Joe Biden issued 17 decrees as a clear sign of reversal of the policies of Donald Trump’s administration. Highlights include the appointment of Jeffrey Zients as response coordinator against Covid-19 and the executive order requiring the use of masks in public buildings across the country. In addition, Biden returned the United States to the Paris Climate Agreement.
As part of the Mexico-U.S. bilateral relationship, it should be noted that Biden sent a bill to Congress that establishes a path to citizenship for more than 11 million undocumented immigrants. The President also stopped the construction of the border wall between the two nations, stressing that there will be new control measures. President Andrés Manuel López Obrador wished Biden a successful tenure and affirmed that they will work on issues such as the pandemic, economic revival, and immigration reform.
3. Problems in the oil sector continue
Mexico’s annual oil production fell 4.2% as of November 2020, as indicated by data from the National Hydrocarbons Commission (CNH). Production of 1.58 million Mexican Petroleum (Pemex) barrels accounted for 96% of total production, so the remaining 4% (51,907 barrels per day) had to be supplied by private operators, such as Maloob, Zaap, Ayatsil, Xanab and Ku.
On the other hand, the decision of the Ministry of Energy (Sener) to limit licenses for the importation of fuels to one year, for companies whose permit has already expired, is putting Mexican companies engaged in the importation of gasoline and diesel on the brink of disappearing. Specialists on the subject have mentioned that U.S. firms like Exxon, Valero, Shell, Tesoro and Trafigura are taking over Mexico’s fuel importation business.
4. Despite the pandemic, automotive industry generates 1 in 4 manufacturing jobs
Data from the National Institute of Statistics and Geography (INEGI) indicates that between March and June 2020 64,285 jobs were lost within the automotive sector. However, by October 2020 the recovery of 49,017 pf them was achieved, representing 76.2% of the total jobs lost in the context of the pandemic caused by the new coronavirus.
Among the main causes that favored this job recovery are the demand for cars, the economic recovery of the United States and the adoption of health measures that allowed to maintain productivity in the sector without risking the health of employees. The production of auto parts employs 833,890 people, the assembly of cars, 98,123 people and the manufacture of car bodies, 17,903 people.
5. Vaccination plan will be key to economic recovery
The head of the Ministry of Finance and Public Credit (SHCP), Arturo Herrera, noted that Mexico’s economic recovery will depend on the vaccination process in the country. In this regard, President Andrés Manuel López Obrador stated that Mexico accepted the reduction in the delivery of doses of the Pfizer vaccine so that poorer countries could access them, on a proposal from the United Nations (UN).
On the other hand, Dr. Miriam Esther Veras Godoy submitted her resignation to the management of the National Center for Children’s and Adolescent Health (CeNSIA) for “personal situations”. This resignation stands out because Dr. Veras headed the Universal Vaccination Program and participated in the design of the National Covid-19 Vaccination Plan and it was speculated that her resignation was due to a possible disagreement with that strategy.
El Financiero: Vacunación y EU son claves para la recuperación de México: SHCP
El Economista: Miriam Veras Godoy explica por qué renunció al Programa Nacional de Vacunación
El Universal: Pfizer recortará número de dosis para México