June 19, 2020
1. Mexico to join UN Security Council
With 187 votes in favor, Mexico was elected as one of the five non-permanent members of the United Nations Security Council. Along with India, Kenya, Norway and Ireland, the country will serve for the period that will go from January 1, 2021 through December 31, 2022.
Juan Ramón de la Fuente, Mexico’s ambassador to the UN, assured that the country’s seat will allow it to transmit its foreign relations priorities on a global level: the peaceful resolution of disputes; respect for international law; and defending socioeconomic causes with an emphasis on gender issues, economic inequality and poverty which is now exacerbated by the coronavirus pandemic.
2. Mexico falls off list of top 25 destinations for foreign investment
The Kearney 2020 Foreign Direct Investment (FDI) Confidence Index revealed that Mexico is no longer in the top 25 priority destinations for FDI worldwide. This is the second time since the creation of the index that Mexico finds is not included; previously falling out of the ranking in 2011. In the face of an uncertain global panorama, investors typically confide in the strongest markets and economies, which are more predictable.
On the other hand, the Mexican Institute for Competitiveness (IMCO) published its 2020 State Competitiveness Index, which reflects that 16 of the country’s domestic institutions were nixed in competitiveness, which reflects in their ability to develop, attract and retain talent and investment.
3. Finance and Public Credit Minister reports that the Mexican economy fell 19% in April
Finance and Public Credit Minister, Arturo Herrera, reported that the Mexican economy contracted between 18% and 19% during the month of April.
He added that the recovery will be different from that of previous crises as the current financial sector is quite robust, particularly commercial banking, and with very different levels of capitalization compared to other crises.
For next year’s federal budget, Herrera explained that they are analyzing the resources gained from the Mexican crude blend, as well as observing the exchange rate, the interest rate and the savings funds that will be available in 2021.
4. Extraordinary congressional session approved to review pending USMCA legislation
Ricardo Monreal, Chairman of the Policy Coordinating Board of the Senate, announced that an extraordinary congressional session was confirmed in order to update and amend the legislation surrounding the new trade agreement between Mexico, the United States and Canada (USMCA).
Also, in the framework of the treaty’s implementation, U.S. Trade Representative Robert Lighthizer confirmed that the United States is seriously considering raising settlement cases regarding controversies against Mexico related to the labor market and biotech products.
5. Federal judge investigating organized crime killed
Federal judge Uriel Villegas Ortiz and his wife, Verónica Barajas, were killed in their Colima home. The federal judge, who had handled important criminal cases related to organized crime and drug trafficking, renounced the protection offered by the Mexican State in February 2019 despite having been indirectly threatened in April 2018.
Arturo Zaldívar, Head of the Supreme Court, has classified his murder as a state crime. The event has shaken the institutions and reminded Mexico that the problems brushed over by the coronavirus epidemic are still very relevant. The Attorney General’s Office has announced an investigation, while President Andrés Manuel López Obrador assured that justice will be done.