MAY 2006 EDITION ARCHIVE
Legal Updates
Mexico Publishes Reforms to Amparo Law
On April 24, 2006 Mexico published in the Official Journal of the Federation (DOF) amendments to the Amparo Law that were issued for the purpose of broadening the grounds justifying that denial of injunctive relief based on damages or prejudice to the public interest. This reform establishes that when an amparo is filed against the government’s collection of taxes or fees, a discretionary suspension of such taxes or fees may be granted only after the party allegedly owing such taxes or fees... [Read More]Trademark Law Treaty Still Pending Ratification
The Mexican Senate recently approved a draft that would amend the Foreign Investment Law in neutral investment matters. The Trademark Law Treaty (TLT), which was signed by Mexico in 1994, has still not been ratified by the Mexican Senate. The TLT is designed to facilitate the use of national and international systems regarding trademark registrations and, harmonizing trademark registration procedures in different countries, so that a more secure and transparent process for trademarks may be... [Read More]Case XXXIX/2006. Expropriation. Concept of Public Benefit.
The Supreme Court of Justice of the Nation, in regards to the public benefit concept, has sustained diverse criteria in which it initially signaled that the causes that justify it could not be based on granting a private party the ownership of the expropriated property, but that it should be the State, in any of its three levels, that should be substitute as the owner of the property for the purpose of obtaining a collective benefit through the provision of services or the realization of public works... [Read More]Case XXXIX/2006. Expropriation. Concept of Public Benefit. - Commentary
In this case, the Mexican Supreme Court of Justice reiterates the broad public benefit concept as an essential element for proceeding with a governmental expropriation. Accordingly, an expropriation occurs not only when the state substitutes itself as owner of the expropriated property, but also in cases when the state authorizes transfer of the property to a private party, so long as, in both cases, the expropriated property is used for the public's benefit, whether for the provision of a service... [Read More]Central Registry of Authorized Agents (RUPA)
The RUPA is a registration process designed to grant identification numbers to authorized agents and businesses to simplify the process of making formal appearances on behalf of their principals in transmittals before federal governmental agencies. Although the RUPA is currently optional, it is foreseen that during 2006, federal governmental agencies will gradually require those parties appearing before them to obtain RUPA numbers, especially those representing companies. The procedure for obtaining... [Read More]Absence from Work as Grounds for Termination with Cause
Article 47, paragraph 10, of Mexico's Federal Labor Law (Ley Federal del Trabajo) states that a cause for termination of an employee with cause, and without responsibility for the employer, includes, "if the employee has more than three absences during a period of thirty days without permission from the employer or without justified cause." It is important to note that the ability to terminate an employee for cause would exist upon the fourth absence within a thirty-day period, and... [Read More]Business & Politics Outlook
Mexican Economy Grows and Expectations Rise
The Department of Finance and Public Credit (Hacienda) stated that during the first quarter of 2006, non-agricultural gross domestic product (GDP) grew 5.5%, which will require an adjustment of the previously issued annual growth estimate of 3.6%. The Maquiladora Association of the State of Nuevo León, for its part, stated that employment growth in the maquiladora industry during the first quarter of 2006 reached levels not seen since 2000, when employment rates reached their highest historical... [Read More]Wolfowitz Says Mexican Economy Could Grow at 7%
On a recent visit to Mexico, the President of the World Bank, Paul Wolfowitz, expressed his opinion that if Mexico were to implement adequate social programs and pending structural reforms, the country's economy could grow at a rate of around 7%. Wolfowitz stated that this would require increased political will to engender an economic environment favorable to increased investment.Felipe Calderón Leads Presidential Race
With two months to go before the presidential election, and after the first debate among the candidates for the presidency of Mexico, Felipe Calderón of the National Action Party (PAN) remains even with Andrés Manuel López Obrador of the Party of the Democratic Revolution (PRD) in electoral polls. According to the Consulta Mitofski research firm, Calderón (PAN) is preferred by 33% of potential voters, while López Obrador continues to be the choice of approximately... [Read More]Economic Indicators
Pesos/Dollar Exchange Rate
The quoted exchange rate as of May 11, 2006 was $10.84 pesos per dollar.Mexican Stock Exchange
The Mexican Stock Exchange (BMV) closed on May 11, 2006 at 21,435.27 points.Interest Rates
On May 11, 2006, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 7.33%.Feature Website
Directorio.gob.mx
We recommend that our friends and clients visit the page: www.directorio.gob.mx, where they will find general information and electronic links to the websites of several different Mexican federal governmental agencies.