September 27, 2019
1. Senate approves secondary laws of education reform
The Mexican Senate approved the secondary laws of an education reform plan, and will now be passed on to President López Obrador to sign them into law. Among the reformed laws include the General Law of Education, General Law of the System for the Career of Teachers, and the Progressive Improvement of Education.
The approved reforms stipulate the elimination of the National Institute of Educational Infrastructure, the dissolution of the National Institute of Educational Evaluation and the creation of a new National System of Progressive Improvement. Opposition leaders claim these changes are a setback for education.
El Financiero: Senado aprobó leyes secundarias en materia educativa
2. USMCA will continue despite impeachment against Donald Trump
Given the beginning of impeachment proceedings against U.S. President Donald Trump, Jesús Seade, undersecretary for North America of the Mexican Ministry of Foreign Affairs acknowledged concerns that the process could delay the approval of the USMCA; although he remains confident that ratification of the deal will occur in the upcoming weeks.
On the other hand, Moisés Kalach, coordinator of the Business Coordinating Council’s (CCE) Advisory Council for International Negotiations, stated that as long as the deal avoids becoming partisan for either Republicans or Democrats, the T-MEC will be approved.
El Financiero: T-MEC avanzará pese a impeachment contra Trump
3. Petróleos Mexicanos registers a slight increase in production
According to Petróleos Mexicanos’ (Pemex) August report, crude oil production reported an uptick to 1,683,000 barrels per day – 0.72% or 12,000 barrels per day more than the same figure registered in the previous month.
Pemex director Octavio Romero Oropeza, reiterated that the state-run company’s goal is to produce 2.4 million barrels per day by the end of the current administration, and 1.8 million barrels per day by the end of this year.
4. Chamber of Deputies approves reform banning forgiveness of tax debt
The Chamber of Deputies approved a constitutional reform to ban tax forgiveness. The reform, proposed by President Andrés Manuel López Obrador, was approved with 421 votes and will be sent to the Senate for further debate.
The amendment stipulates that the executive branch cannot forgive tax debts. Former President Felipe Calderón’s administration forgave nearly MXN $161.9 billion (USD $8.2 billion), while Enrique Peña Nieto’s administration forgave MXN $238.97 billion (USD $12.2 billion) worth of tax debt.
5. Bank of Mexico lowers interest rate for the second time this year, currently stands at 7.75%
The Mexican central bank (Banxico) decided to lower the interbank interest rate to 7.75% from 8%. This is the second time in 2019 that the institution makes a cut in spite of a slowdown in the Mexican economy.
To establish a low and steady inflation rate, Banxico’s governing board will continue to monitor all elements of uncertainty that affect the behavior of inflation and its prospects, the organization stated in a release.