May 14, 2021


1. Disputes continue in Mexican energy sector

The Mexican Supreme Court approved the unconstitutionality demand filed by the Federal Economic Competition Commission (Cofece), against the legal reform of the Electricity Industry Law. However, the court denied the provisional suspension of the rule. It should be noted that expert judges in the matter granted more than twenty suspensions that have put the reform on pause. 
Likewise, the hydrocarbon industry singled out investment uncertainty. Roger González, president of the Energy Commission of the Business Coordinating Council (CCE), assured that due to the changes in the regulations of the Hydrocarbons Law, 128 projects that represent investments valued over USD $35 billion dollars will cease. The Energy Regulatory Commission (CRE), under these new regulations, prepares the cancellation of 125 permits for private companies, which represent an investment of MXN $3.75 billion (USD $188.7 million).

El Economista: SCJN admite acción de inconstitucionalidad de la Cofece contra reforma eléctrica de AMLO; niega suspensión provisional.
El Heraldo de México: Reforma de hidrocarburos, prepara la CRE 125 cancelaciones.
Excélsior: IP tiene 35 mil mdd parados en inversiones; incertidumbre sector energético

2. Nuevo León gubernatorial candidates face complaints

The Attorney General’s Office (FGR) explained that it will carry out investigations into opposition candidates Samuel Garcia, from the Citizen’s Movement (MC) party, and candidate Adrián de la Garza, from the Institutional Revolutionary Party (PRI) and Party of the Democratic Revolution (PRD) coalition, for alleged electoral crimes and use of social programs for electoral purposes.

In this sense, President Andrés Manuel López Obrador explained that he will continue to denounce illegal acts and alleged electoral fraud on the part of any candidate, local or federal.

Milenio: FGR investiga a Adrián de la Garza y Samuel García, candidatos a gubernatura de NL.
El Universal: Claro que sí estoy metiendo las manos en las elecciones, “no puedo ser cómplice del fraude electoral”: AMLO

3. Labor and agriculture complaints presented by Mexico and U.S. under USMCA

The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) filed the first request for a labor case against an auto parts company with facilities in Mexico under the new United States-Mexico-Canada Agreement (USMCA). The complaint is against the company Tridonex, based in Matamoros, Tamaulipas, with a headquarters in Philadelphia through Cardone Industries and controlled by Canadian alternative asset manager Brookfield Asset Management. 

Two days later, the Mexican ambassador in Washington, Esteban Moctezuma, sent a letter to U.S. Labor Secretary Martin J. Walsh indicating that there are actions that violate USMCA agricultural agreements. The Mexican government called for the creation of a cooperative space within the agreement to file complaints about  non-compliance with labor laws in certain sectors and states of the United States; and the guarantee of labor rights.

El Economista: México enfrenta su primera prueba por una queja laboral en el T-MEC.
El Economista: En trabajo agrícola, EU está incumpliendo el T-MEC: SRE

4. President orders increase in military presence on the northern border 

President Andrés Manuel López Obrador ordered an increased presence of the armed forces at customs houses along Mexico’s the northern border, to be administered by the Secretariat of National Defense (SEDENA). The main objective is to combat the smuggling of diesel and other types of fuels across border. The Secretariat of the Navy (SEMAR) is already in charge of the administration of the 17 maritime customs houses.

The General Administration of Customs (AGA) indicated that the administrators of most of the customs have been changed, especially those accused of acts of corruption. Under this new customs control regime, 36 of the 49 customs offices in the country will come under the auspices of the Mexican armed forces, while the rest will be administered by civil authorities. The increase of military presence has grown since the start of the new government administration.

El Universal: AMLO pone el doble de militares en las calles, más que Peña y Calderón.
Animal Político: AMLO ordena militarizar aduanas de la frontera norte; Marina controla las ubicadas en puertos.
The Economist: Mexico’s president is giving the armed forces new Powers

5. Tax revenue from digital platforms increases

According to data from the Ministry of Finance and Public Credit (SHCP), the changes in tax provisions on digital platforms generated MXN $8.66 billion (USD $435.95 million) for the government in 2020. 

In the middle of this year the Organization for Economic Cooperation and Development (OECD) will seek to reach an agreement to tax digital multinational companies. If consensus is reached on a minimum tax for the digital economy, the 2022 economic package presented by the Secretariat to Congress would include this tax, as well as other OECD recommendations.

El Economista: En el 2020, plataformas digitales dejaron 8,663 millones de pesos de recaudación