Publication Category: Business & Politics Outlook


Political Thermometer

As soon as the second half of 2017 begins, Mexico is already in 2018. Politics continues to be the activity that occupies much of the lives of Mexicans. Now, in full electoral mode, the country has the democratic opportunity to decide who will take the country’s reins. Gone are the times when everything revolved around a one-man decision, with the ability to decide who would be his successor. This so called “dedazo” was almost left behind in the wake of recent democratic reforms. Nevertheless, the President still has the capacity to influence the election by choosing who will run for President of the Republic on the Institutional Revolutionary Party (PRI) ballot. This heats up the political atmosphere because in the … read more


Mexican Tourism Welcomes Good News

Recent hard times in Mexico have made it difficult to highlight, as should be the case, the progress and achievements of society as a whole, regardless of whether such progress has occurred in the public or private sector. Bad news related to violence, insecurity, corruption and organized crime has generated public distrust. This has prevented a clear appreciation of a series of achievements in different areas that evidence Mexico’s progress. It is true that some electoral results have been criticized, but it is equally true that they were processes that have been conducted without major problems. The fact that the winning candidates do not have high percentages of votes in their favor is the result of the spreading of votes … read more


Political Thermometer

After the elections for state governors in 2016, in which the Institutional Revolutionary Party (PRI, for its Spanish acronym) fared poorly, opinion polls show that the PRI no longer occupies first place, as it has for many years. The PRI is currently in third place after the National Regeneration Movement Party (MORENA, for its Spanish acronym) and the National Action Party (PAN, for its Spanish acronym), both of which are still fighting for first place. The Party of the Democratic Revolution (PRD, for its Spanish acronym) is currently in fourth place. These results are debatable and certainly up for discussion.  However, they show what some years ago was thought to be impossible is now possible. The biggest surprise is the … read more


State of the Mexico – US Relationship

Mexico and the United States share a lengthy land border that stretches almost 2,000 miles, along with a common history marked by agreements and disagreements, mutual support, alliances against common enemies and even a war between the two countries. Both countries have been able to overcome difficult episodes and have been able to integrate their economies, as well as other social, cultural, artistic and athletic endeavors. It is estimated that the number of people in the United States of Mexican ancestry is close to 30 million, while approximately 11 million native Mexicans now live in cities all over the Unites States. On the other hand, U.S. citizens have chosen Mexico as a tourist destination and a preferred vacation spot. It … read more


Political Thermometer

Mexican political news currently revolves around several governors who have concluded their terms and have been formally accused of engaging in acts of corruption.  The most noteworthy has been Javier Duarte, governor of Veracruz, who requested a leave of absence a few weeks ahead of the conclusion of his term to address accusations made against him and to attempt to clear his name of any wrongdoing.  A few hours after requesting leave, instead of appearing before the authorities to face the charges filed against him, he is believed to have escaped and his whereabouts are unknown.  Further aggravating the situation is the discovery that millions of pesos of government funds were misappropriated while Duarte made purchases of assets with values … read more


Political Thermometer

  The worst losses are those in the political arena.  Few politicians are able to come back after a loss.  Historically, the most famous comebacks after a political loss were staged by the likes of Churchill and Nixon.  After the defeat of the Institutional Revolutionary Party (PRI) in the June elections, their former leader, Manlio Fabio Beltrones, stated that losses do not endure forever, in the same way that no victory is eternal.  Days after, he resigned and was replaced by Enrique Ochoa, a young and well known politician educated in U.S. and Mexican universities.  Ochoa has an impressive resume, so much so that he co-authored a book with Joseph Stiglitz, the famous economist who was awarded a Nobel Prize … read more


Federal Law on Special Economic Zones

Mexico’s Congress recently approved a bill proposed by President Peña Nieto to designate special economic zones in the 10 states with the highest poverty levels.  Such zones are instrumental in facilitating trade and investment, as well as overcoming existing barriers to such.  The new law defines special economic zones as geographic zones with economic and legal regimes that are different than the rest of the country given their special characteristics.  Accordingly, they will receive numerous tax and customs incentives.  Determining the zones that will receive these benefits is provided for in the law based on various specific criteria, including strategic areas for the development of productive activities for zones with one or more municipalities with a combined population of between … read more


Notes from Conference: Electricity Reform in Mexico, by José María Lujambio

On June 15 and 16, 2016 the conference “Electricity Reform in Mexico,” organized by Kinetic (www.becomekinetic.com), was held at the new  home of the Petroleum Club of Houston, located at the 35th floor of the Total building in downtown Houston. Cacheaux, Cavazos & Newton, L.L.P. contributed to the organization of the event by designing the program, inviting keynote speakers, panelists and moderators, and hosting the reception on the evening of June 15t. Highlights of the conference included the participation of Commissioner Jesús Serrano of the Energy Regulatory Commission (CRE), Marcos Valenzuela, Director of Market Operations of the National Center for Energy Control (CENACE), Rodrigo Esparza, attorney at the Transformation Office of the Federal Electricity Commission (CFE), among other leading figures … read more


BUSINESS & POLITICAL OUTLOOK

Political Thermometer The year 2016 will be a busy political year for the United States as primary elections will be held by the two major political parties to nominate their presidential candidates, followed by the general election to elect the successor to President Barack Obama. In Mexico, presidential elections will not be held this year.  Nevertheless, elections will be held to elect governors in 12 out of the 32 states. These elections could be referred to as the “preliminary elections” to the presidential election to be held in 2018, given that the elections for governor will be held in states of political and demographic importance.  The results of these elections may resolve the impending question in 2018: Will the Institutional … read more


Recent Jurisprudence – Variables to Consider in Determining Whether Substantial Power Exists in a Relevant Market, by Adrián Salgado

The First Collegiate Court of the Circuit on Administrative Matters Specializing in Economic Competition, Broadcasting and Telecommunications, located in Mexico City, with jurisdiction throughout Mexico, recently issued legal opinion number 1.1o.A.E. 123 A (10a.), titled: “Substantial Power in a relevant market. Variables that should be considered in order to determine such”. In its legal opinion, the Collegiate Court held that “the analysis of the substantial power in a relevant market cannot be performed in abstract terms, under a perfect perspective”, considering that when consumers do not perceive the existing products and services as perfect substitutes, under real conditions, the various economic agents have a certain amount of power. Based on the foregoing, the Court determined that it is necessary to … read more