April 1st, 2022
1. New energy dynamics in the U.S-Mexico bilateral agenda
President Andrés Manuel López Obrador held a meeting with the United States Special Envoy for Climate, John Kerry, who was accompanied by American businessmen from the energy sector. The aim of the meeting detailed the scope of the reform to the electrical industry proposed by the Federal Government, to encourage investments in the Dos Bocas refinery, as well as the creation of jobs.
This week, Mexico’s president called on federal legislators to discuss and, if necessary, approve the Electricity Reform before the end of the regular session scheduled for April 30th. In this sense, the visit adds new environmental, regional, and commercial elements, which will be considered by the legislative power. This is the third time that the president meets with the US official.
2. Chamber of Deputies approves Mobility Law
The Chamber of Deputies approved the Mobility and Road Safety Law to prioritize the mobile system in the country. The project promotes the right to mobility in conditions of road safety, accessibility, efficiency, and sustainability, as well as reducing the number of accidents on federal highways, with new speed limit schemes, and moving towards zero-emission cars.
Specifically, for federal trucking, it does not consider the imposition of local taxes or additional permits. Parliamentary groups presented 13 reservations for discussion, which must be reviewed. With 347 votes in favor, 27 against, and 126 abstentions, the plenary session endorsed the project.
3. Mexico maintains sound finances in the face of monetary policy changes
The Governor of the Bank of Mexico (Banxico), Victoria Rodríguez Ceja, stated that the country will recover the economic levels prior to 2020 until the first quarter of 2024, based on her projection to decide Banxico’s interest rates. The inflation rate has been above 7% since November 2021, a figure higher than the Bank of Mexico’s target, which maintained 3% per year.
During the National Banking Convention, the governor explained that Mexico will evaluate the decisions of the U.S. Federal Reserve and the movements in the exchange rate. Until now, the country maintains sound finances to face the cycle of changes in monetary policy, as well as the temporary challenges due to the conflict in Eastern Europe.
4. Mexican exports grew in February
According to data from the National Institute of Statistics and Geography (Inegi, for its Spanish acronym), national exports increased in February, with the largest increase recorded since 2020. Shipments to meet external demand increased by 16.03% at a monthly rate to USD $48,405 million, up from 74.81% during June 2020.
Specifically, manufacturing shipments totaled USD $42.86 billion, up 16.7%; automotive sales were higher by 34.7%; and non-automotive sales fell by 9.3% over the previous month, as demand for vehicles in the U.S. increased. in the United States. However, the most affected sector was oil sales, with its second month of losses, achieving only 13.9% at the monthly rate.
5. Electoral reform as a priority after Mandate’s Revocation
Mexico will carry out the first Mandate Revocation exercise on April 10th, 2022. Faced with a limited budget, the National Electoral Institute (INE) will install 63% fewer polling stations in several cities, such as Mexico City. Civil Society Organizations have stated that this lack of voting booths could alter citizen participation.
On the other hand, President Andrés Manuel López Obrador announced that after April 10th, he will send a package of reforms to the Constitution in political and electoral matters to the Chamber of Deputies. Among the highlights is the reduction of the number of INE’s board members, as well as the direct voting of electoral officials. The results of the recall will determine the changes promoted by the Executive