October 25, 2019
1. Senate approves financial reforms for 2020
With several modifications, the Mexican Senate approved the Income Law of the Federation 2020 and the Federal Rights Law, as well as alterations to income tax, value-added tax and a special tax regime on production and services.
Among the changes include the elimination of a charge on water rights for agricultural and livestock use, a decrease in the payment of duties for non-residents, and a modification of the retention rate of income tax for digital platforms. During the same session, the Hydrocarbons Revenue Law was passed with no changes and was sent to the executive branch for final approval. The changes made to the Income Law, the Federal Rights Law and the miscellaneous fiscal reforms will return to the Chamber of Deputies to be discussed next Tuesday 29.
2. Mexico drops six positions in Doing Business index
México dropped six places in the World Bank’s Doing Business ranking of 2020, an index that measures the ease of doing business across 190 countries. Mexico dropped to 60th place this year from 54th in 2018. Mexico has become the second-best country to do business in Latin America, just behind Chile.
The Economy Secretary highlighted that Mexico’s score of 72.4 is slightly better than the 72.09 it obtained last year. Mexico remains ahead of other emerging markets like Colombia, Peru, Brazil, Argentina, South Africa and Vietnam.
3. Federal government announces public works tenders for MXN $8.8 billion
Through a press release by the Secretary of Finance and Public Credit, the federal government announced the beginning of 873 public works tenders to be included in the 2020 budget valued at MXN $8.767 billion (USD $460.2 million).
Tenders will occur under the auspices of the Secretary of Transport and Communications.
4. Mexico to place warnings on front of food labels
The Mexican Senate approved reforms to the General Health Act, that will force the food and beverage industry to include a label on the front that warns consumers about high amounts of sodium, sugar, and fats. The reform was previously approved in the Chamber of Deputies and will be sent to the president for entry into force.
Mexico will become the fourth country in Latin America to apply consumer warnings to its products, following the lead of Chile, Uruguay, and Peru.
5. Andrés Manuel López Obrador and Donald Trump agree to “freeze” illegal weapons trade
Foreign Relations Secretary Marcelo Ebrard, affirmed that Mexican President Andrés Manuel López Obrador and his U.S. counterpart Donald Trump held a telephone call in which they agreed to take actions to “freeze” the illegal weapons trade from the U.S. to Mexico.
According to Marcelo Ebrard, the Mexican president stated that close to 80% of illegal weapons entering Mexico cross the U.S. – Mexico Border, and invited his U.S. counterpart to fight illegal weapon trade as strongly as the drug trade.