JANUARY 2010 EDITION ARCHIVE
Legal Updates
PRACTIQUE LEGAL - How Does the Value Added Tax (VAT) Work?
By Rene Cacheaux Mexico, having followed the European and Canadian systems, established a consumption tax called the Value Added Tax, which is also known by its initials VAT. The tax is imposed on the general consumption of goods and services, and applies at every level from the first producer until sale to the final consumer, which is accomplished through a system of VAT credits. A peculiar element of the VAT is this tax credit system, which allows producers and intermediate parties to recover... [Read More]300 PALABRAS - 2010 - Bicentennial and Centennial
Opinion by Dr. Mario Melgar- Adalid 2010 is the year in which the two most important events in Mexico's history are commemorated: the bicentennial of Mexico's Independence and the centennial of Mexico's Revolution. One hundred years ago, Mexico celebrated its first Independence centennial in a manner that allowed former President Porfirio Diaz, after 30 years in power, to show the world that Mexico could and should belong to the "world's concert of nations". Mexico's... [Read More]Recent Jurisprudence - Half Hour Rest Break in Reduced Workdays
The Second Chamber of Mexico's Supreme Court published in the Judicial Weekly of the Federation case decision number 2a./J.150/2009, the title of which reads "Half Hour Rest Breaks in the Workday to Continue as Set forth in Article 63 of the Federal Labor Law. Treating such according to reduced work days is inapplicable." In its decision the Court establishes that the half hour rest break provided in article 63 of Mexico's Federal Labor Law, for cases involving a full continuous... [Read More]Amendments to Mexico’s Code of Civil Procedure for the Federal District
On September 10, 2009 important amendments to the Code of Civil Procedure for the Federal District were published in the Official Journal of the Federation, which is the largest jurisdiction for such matters in Mexico. With this reform, the time periods to file appeals against final judgments have been extended from nine to 12 working days, and the time period for appealing interlocutory rulings or immediately effective sentences has been extended from six to eight working days. The time period to... [Read More]New Minimum Wage in Mexico
The National Commission of Minimum Wages published and approved new general minimum and special wages that will be in force in Mexico as of January 1, 2010. The increase is 4.85% across the three geographic zones that divide the country. The minimum general daily salary for each zone in 2010 is as follows: Zone "A", which includes municipalities in Baja California and Baja California Sur, the Federal District and various other municipalities, $57.46 pesos; Zone "B", which includes... [Read More]Business & Politics Outlook
Political Thermometer
Recent polls of Mexicans and their perception of Mexico's current situation point not only to economic and social repercussions, but also to fundamental political considerations. The polling firm Consulta Mitofsky published recent data showing, for the first time, that a notable majority thought the year 2009 was worse than the previous year. Those who had the opposite opinion numbered 14 points lower than the year before. 55% of those polled felt 2009 was worse than 2008, which is a decrease... [Read More]President Calderon Presents Political Reform
Having reached the midway point of his six year term, Mexican President Felipe Calderon has formally presented to the Mexican Congress a program known as the Political Reform Initiative, which has set off intense debate in Mexico's political system regarding the fundamental reforms required to allow the country to fully develop its democracy, political system and economic and social well-being. Calderon's presentation of the Initiative was preceded by the annual Presidential message given... [Read More]Economic Indicators
Peso/Dollar Exchange Rate
The quoted exchange rate as of January 7, 2010 was $12.7646 pesos per dollar.Mexican Stock Exchange
The Mexican Stock Exchange (BMV) closed on January 7, 2010 at 33,064.57 points.Interest Rates
On January 7, 2010, the Average Interbank Interest Rate (TIEE) for a 28-day period was at 4.9250%.Mexico IP Info
Advancement in Proposed Agreement on Anti-Piracy Trade Practices
Since the end of 2007, Mexico has participated in various meetings with other countries including the United States of America, Canada, Japan, countries within the European Union, Switzerland and New Zealand in order to reach an international agreement to combat the production and sale of counterfeit and pirated goods known as the Anti-Counterfeiting Trade Agreement or ACTA, by its initials in English. After six rounds of negotiations, the parties agreed that a seventh session will take place this... [Read More]