July 16, 2021


1. Herrera sees a favorable economic outlook after his departure

Before leaving his position at the Ministry of Finance and Public Credit (SHCP), Arturo Herrera mentioned that this year will still show economic recovery following the pandemic, but the next one will be a post-COVID year. He indicated that “extremely prudent” policies were followed in debt management during his term in the SHCP. He highlighted, as successes, the elimination of fiscal consolidation and anti-abuse clauses that resulted in additional revenue increases of around 1% of GDP.

The president formalized the appointment of the head of the SHCP, therefore, as of today, July 16th, Rogelio Ramírez de la O will assume the position of Secretary of Finance and Public Credit.

El Universal: “Ya pasó lo peor de la crisis económica”: Arturo Herrera.
El Financiero: Rogelio Ramírez de la O asume el cargo de secretario de Hacienda el 16 de julio.

2. President seeks constitutional reform on energy

President Andrés Manuel López Obrador announced that he is preparing a constitutional reform on energy so that the Federal Electricity Commission (CFE) takes charge of 54% of the electricity consumed in the country, leaving 46% of the generation to private initiative.

After the announcement, a Collegiate Tribunal revoked a definitive suspension that has halted the reform of the Electrical Industry Law for four months, which gives preference to the CFE over private companies. The federal government must wait for the courts to finish studying each of the suspensions granted by judges so that the reform can take effect.

El Financiero: AMLO va por reforma constitucional en materia eléctrica.
Milenio: Tribunal revoca suspensión que frenaba la reforma a la Ley de la Industria Eléctrica de AMLO.
La Jornada: AMLO: tendrá CFE control de 54% de energía; IP el resto.

3. National Customs Agency is created

The executive branch published a decree that creates the National Customs Agency of Mexico (ANAM), which is a decentralized administrative body under the auspices of the Ministry of Finance and Public Credit (SHCP), endowed with technical, operational, administrative, and management autonomy.

Its objective is to organize and direct customs and inspection services, and will have the power over goods, income, funds, and trusts. The decentralized body may contract the services of the armed forces to carry out its work.

La Jornada: Publica AMLO decreto por el que se crea la Agencia Nacional de Aduanas.
Forbes: López Obrador crea nueva Agencia Nacional de Aduanas.

4. International community sees uncertainty in Mexico

There is an environment of uncertainty regarding investments in the country. Recent changes in the energy sector have increased it. In addition, the Ministry of Finance and Public Credit (SHCP) reported on the definitive closure of the offices of JP Morgan and Deutsche Bank in Mexico. To this is added a report from the Organization for Economic Cooperation and Development (OECD) that indicates that public investment in Mexico represented 1.3% of GDP in 2019, placing it in the last place of the member countries of the multilateral body.

In contrast, and despite the pandemic, remittances increased by 11.4% during 2020. This year there was an accelerated growth, reaching an increase of 31% in May. Mexico is expected to reach close to USD $50 billion in remittances by the end of 2021.

El Sol de México: JP Morgan y Deutsche Bank cierran oficinas en México.
El Economista: En la OCDE, México tiene la menor inversión pública como proporción del PIB y Remesas alcanzarían niveles cercanos a los 50,000 millones de dólares en el 2021: BBVA.

5. Violence is Mexico’s central issue to tackle

When asked about the violence in the country, President López Obrador admitted that, if he does not pacify the country, his government cannot be historically well-perceived. He indicated that, during the meeting he had with elected and acting governors of his Morena party, security was the central issue.

Violence in Mexico has increased throughout the territory. In the north, a clandestine grave was found in Tamaulipas where it is presumed that the Cartel del Golfo leaves its victims. Likewise, armed conflicts between organized crime groups and residents of the states have generated a crisis of insecurity in Chiapas, Guerrero, Michoacán and Zacatecas despite the presence of the National Guard, the army, and local police.

Animal Político: Si no pacifico a México, no se acreditará históricamente mi gobierno: AMLO y Pobladores retienen a elementos de GN en Oaxaca; AMLO dice que solo dialogan.
Excélsior: Sacan media tonelada de restos humanos de “campo de exterminio” en Tamaulipas.
Nación 321: Encuentran a familia de Aguascalientes desmembrada en Zacatecas.