March 19, 2021
1. Constitution to be amended if energy sector law deemed unconstitutional
Following the publication of changes to the Electricity Sector Law in the Official Gazette, approximately 35 provisional suspensions have been granted. This Friday, a federal judge suspended indefinitely the application of the Law with general effects. That is to say, the stipulated changes cannot apply to any individual or company.
In this regard, President Andrés Manuel López Obrador has stated that if the judiciary deems the new law unconstitutional, he will introduce an initiative to modify the Constitution so that the law can move forward. Additionally, he stated that some energy companies have approached him to renegotiate contracts, however, he emphasized that there must be concessions in order to reach a balanced agreement.
Excélsior: Alistan reforma a Carta Magna por ley eléctrica; López Obrador adelanta acciones.
El Financiero: “Cascada” de suspensiones en Ley Eléctrica.
Milenio: Sener impugna suspensiones que frenaron nueva Ley de la Industria Eléctrica
2. Phase two of food labeling law extended through May 31
In an effort to provide legal and operational certainty, Mexican authorities decided to grant an extension to the April 1st deadline that requires all products to comply with phase two of NOM-051 for prepackaged foods and non-alcoholic beverages. The entry into force of phase two of the law will now begin on May 31st.
Among the changes that consumers will be able to identify with phase two are larger and more visible nutritional labels, differentiation of products that are imitations, prohibition of the use of animated characters in products with seals so as not to encourage their consumption by children, identification of added sugars in a product to the list of ingredients and a declaration of allergens.
3. Device geolocation to be mandatory for bank users
As of March 23rd, before opening accounts, entering contracts and carrying out remote transactions, clients and users must allow banks to locate their device in real time through which they intend to carry out digital transactions, a rule developed by the Association of Banks of Mexico (ABM).
The objective is to comply with the legal framework for the Prevention of Money Laundering and Combating the Financing of Terrorism in the country. Banks are obliged to obtain and store the geolocation of the device through which users access their applications across different financial services.
4. Plan for phased return to in-person classes under development
Health Secretary Jorge Alcocer, reported that, in coordination with the Secretariat of Public Education (SEP) and the scientific advisory group, a strategy is being prepared to resume in-person classes. One year after the suspension of in-person school activities due to the coronavirus pandemic, Alcocer assured that according to international evidence, schools are not amplifiers of the pandemic; however, this does not mean that they are safe.
Specifically, in the state of Campeche, the state government presented a plan for the phased and mixed reactivation of in-person education services. The state government will reactivate them at the basic level in communities where the operation of the current distance education model is difficult; that is, areas without internet connectivity and in communities with less than 1,000 inhabitants.
5. Mexican economy to grow significantly in 2021
Fitch Ratings highlighted that external demand will be an important growth driver in 2021 for the Mexican economy. The same will occur in remittances that supported domestic consumption. Bank of America increased its forecast for Mexican growth this year by 1% to 4%, as Mexico’s GDP has been linked to that of the U.S. due to the close bilateral economic relationship between both nations.
The U.S. economic boom will have the strength to boost the Mexican economy; however, domestic conditions will put a damper on part of the Mexican growth. The U.S. boost was given thanks to the approval of a new fiscal stimulus, which will allow more people to receive support, more companies to open and productivity to recover.
El Economista: Economía de EU crecerá 6.5% en el 2021: FED.
La Jornada: Prevén firmas extranjeras un mayor despegue para México.