June 7, 2019
1. Minister of Foreign Affairs continues negotiations with U.S. over proposed tariffs and illegal immigration
Last week, U.S. President Donald Trump, announced the imposition of a 5% tariff on all Mexican goods, slated to begin on June 10th. In response, President López Obrador entrusted a delegation headed by the Secretary of Foreign Affairs Marcelo Ebrard to commence negotiations with the U.S. government.
The Mexican delegation met with U.S. Vice President Mike Pence to discuss the tariffs on Mexican products and migration policies, although no agreement was reached. Mexico offered to deploy 6,000 National Guard troops to the south of the country, particularly on the border with Guatemala, to halt illegal immigration.
Two additional rounds of talks are scheduled for today – both in the morning and the afternoon – between Mexican officials hoping to reach an agreement and representatives of the Trump administration.
2. Fitch lowers Mexico’s debt rating, Moody’s lowers Mexico’s outlook
Credit ratings agencies reacted after U.S. President Donald Trump threatened to impose a 5% tariff on all goods from Mexico and the Mexican government’s decision to enact three rescue packages for Pemex the state-owned petroleum company. Fitch Ratings reported Mexico’s debt rating would drop to BBB from BBB+ and its outlook to negative, while Moody’s changed its outlook to ‘negative’ from A3.
Over the last weeks, the International Monetary Fund and the Central Bank of Mexico lowered their economic growth forecasts but praised government strategies to fight crime and corruption as ways to boost economic growth.
3. President López Obrador won’t attend G20 meeting to avoid trade war friction with the U.S
The 2019 G20 summit will take place on Osaka, Japan later this month, which will gather governments and central bank heads from 19 countries and the European Union. To avoid confrontation over a growing trade war with their northern neighbors, President López Obrador declared he would not attend the summit.
President López Obrador will send Secretary of Foreign Affairs Marcelo Ebrard and Secretary of Finances Carlos Urzúa to Osaka. The President will also send a letter calling for a solution to inequality and promotion of justice across the world.
El Economista: AMLO confirma que no asistirá a la reunión del G20
4. Federal Tribunal suspends construction of Santa Lucía airport
A federal court granted a suspension of the construction of Santa Lucía Airport to businessman Juan Ramón Morena Mitre, Director of Novalan. In previous months, Morena Mitre filed complaints regarding the absence of environmental impact studies and permits for the airport.
President López Obrador addressed the issue during his morning press conference stating the federal government will follow the court’s rulings. Additionally, he also assured this new dispute arises from dissatisfaction on the part of “corrupt” people upset about the cancellation of the Mexico City Airport in Texcoco and those who oppose the Mayan Train project.
5. Morena party wins gubernatorial elections in Baja California and Puebla with a turnout of only 33%
Morena, the party of the federal government, has won gubernatorial elections in Baja California and Puebla. However, the triumph was eclipsed by the high levels of voter abstention – participation in Sunday’s elections averaged between 30 and 40%.
Baja California Governor-elect Jaime Bonilla, ended 30 years of Partido Acción Nacional (PAN) hegemony in the northern state and will be the first superdelegate to become governor. The mandate is expected to last two years, as Mexican states align their electoral calendars to occur on the same date.
Elections in Puebla were heavily criticized as Governor-elect Miguel Barbosa was once again selected as the Morena candidate, following the deaths of former Governor Martha Erika Alonso and Senator Rafael Moreno Valle in a helicopter crash last year.