October 30, 2020


1. Federal pact threatened by differences between governors and president

Governors belonging to the Federalist Alliance announced that the absence of consensus and respect between the federal government and municipalities puts the federal pact at risk. This stems from the 2021 federal spending cuts, the elimination of trusts, and the lack of specific actions to address the COVID-19 pandemic.

Governors argue that the situation of the country’s entities “is unsustainable and fomenting a national crisis.” Therefore, governors are calling for a political dialogue that reviews positions on a new federalism with a new financial, fiscal, promotion and competitiveness settlement. For his part, President Andrés Manuel López stated that entities will not be given any part of the budget that is federal.

El Universal:10 gobernadores amagan a AMLO con ruptura
El Universal: Todos los gobernadores del PAN se suman al pleito fiscal con AMLO

2. New wave of COVID-19 will not affect economy as in March

Faced with a new wave of COVID-19 contagion in the country, Economy Secretary Graciela Márquez pointed out that in view of this situation the economic downturn will not be like the one experienced in March, as there are new essential activities that would prevent a depression of the national economy.

Derived from the rebound, Chihuahua has returned to a red alert, but continues with activities such as vehicle manufacturing, mining and construction. For its part, Jalisco announced the application of the Emergency Button for 14 days that will restrict the operation of sectors that generate crowds of people beginning Friday, October 30th.

El Financiero: Freno económico en México será menor en caso de rebrote de COVID-19, asegura Gobierno
El Economista: Aplicación del Botón de Emergencia, inminente: E. Alfaro

3. Ministry of the Navy to administer national ports

The Senate approved articles reserved under the terms of an opinion that will reform three laws in relation to the powers of the Ministry of the Navy. The opinion extends the powers of the Ministry of the Navy to exercise national maritime authority and to bring the functions performed by the Secretariat of Communications and Transport under its auspices.

The Ministry of the Navy should regulate communications and transport by water, as well as formulate policies and programs for its development. It shall also regulate, promote, and organize the Merchant Navy and establish the requirements to be met by its technical staff, as well as grant relevant licenses and authorizations.

El Universal: Senado avala que la Marina administre los puertos

4. Deputies approve health fund return to Federal Treasury

In the Chamber of Deputies, the Morena parliamentary group and its allies obtained the approval of the opinion stipulating that MXN $33 billion (USD $1.54 billion) of the Health Fund for Welfare be transferred to the Federal Treasury.

The opinion notes that the fund is not abolished, but that the budgetary resources allocated to it by law are not reduced each year, and also stipulates three categories in which the fund’s resources cannot be eliminated or restricted: diseases that cause catastrophic expenditure, infrastructure needs, drug collection and distribution; and access to clinical examinations.

Proceso: Morena y sus aliados aprueban transferir 33 mil mdp del Fondo de Salud a la Tesorería

5. U.S. confronts Mexico for alleged USMCA violations in energy sector

Secretary of the Economy Graciela Márquez clarifies that there is no reason to bring Mexico to a panel of dispute settlement for non-compliance with the trade agreement between Mexico, the U.S. and Canada (USMCA) for energy matters. This is derived from a letter from 43 U.S. lawmakers calling on President Donald Trump to address the Mexican government’s alleged discrimination against foreign energy investments in Mexico.

“Recent reports indicate that the Mexican government is granting preferential regulatory treatment to Petróleos Mexicanos (Pemex) and is deferring or completely canceling permits for U.S. energy companies” can be read in the letter. For his part, President Andrés Manuel López said that supporting state-owned companies does not violate any agreement and is done within the legal margins.

El Economista: SE descarta llevar a México a panel de controversias del T-MEC en materia de energía
Forbes: SE descarta llevar a México a panel de controversias del T-MEC en materia de energía