November 29, 2019
1. Mexican drug cartels could be considered terrorist organizations
The President of the United States, Donald Trump, said that for several months he has considered designating Mexican drug cartels as terrorist organizations, and accused the government of Mexico of losing control over drug cartels.
The Foreign Affairs Secretary, Marcelo Ebrard assured that “Mexico will not accept any action that means a violation of national sovereignty” and reiterated the position of the Mexican government to cooperate with the US government against organized crime. The President of Mexico, Andrés Manuel López Obrador, reiterated his willing to cooperate and rejected any form of intervention by the United States government.
2. President Andrés Manuel López Obrador submitted National Agreement on infrastructure
President Andrés Manuel López Obrador submitted the Private Sector Infrastructure Investment Agreement, which will have an investment of 859 billion pesos and will develop 147 projects over the next 5 years.
The President of the Business Coordinating Council, Carlos Salazar Lomelín, affirmed during the presentation of the Infrastructure Investment Agreement, that this represents a “first package” and almost equals the figure that the Government foresees for Infrastructure in the Federal Expense Budget.
El Universal: Anuncia López Obrador plan de infraestructura
3. INEGI reports technical recession and economic stagnation
The National Institute of Statistics and Geography reported the results of the Gross Domestic Product (GDP) of Mexico, which showed zero growth for the third quarter of the year, compared to the previous quarter.
Besides, the INEGI reviewed the previous figures of the Mexican Gross Domestic Product. The adjustments showed that since the fourth quarter of 2018 to the second quarter of 2019, the GDP registered falls, which according to experts, represents a technical recession. The Gross Domestic Product has not registered positive figures during the first three quarters of 2019.
El Financiero: Inegi confirma: hubo recesión; hoy, estancamient
4. Mexican Government renews the line of credit with the International Monetary Fund
The Government of Mexico requested from the International Monetary Fund (IMF) a renewal of the Flexible Credit Line. The new agreement between Mexico and the IMF includes a reduction in the amount of credit from 74 billion to 61 billion dollars.
The Mexican Government uses the Flexible Credit Line since 2009 as a mechanism to face possible economic contingencies and until now it has not been necessary to use it. The International Monetary Fund makes this instrument available for countries with solid macroeconomic frameworks, such as Mexico.
El Universal: FMI aprueba crédito a gobierno de AMLO
5. USA and Canada continue negotiations for USMCA´s approval
Jesús Seade, Mexican Undersecretary and Trade Negotiator for North America met in Washington with democrat representatives and various Canadian authorities on the latest details to advance the approval of the United States Mexico and Canada Commercial Treaty (known as USMCA).
According to sources, democrat legislators try to include stricter provisions in labor standards and environmental laws. So far, the economic agreement has only been approved by the Mexican congress, while the government of Canada said it will approve the new treaty until ratification by its US counterpart.