Business & Politics Outlook Articles


April 11, 2017

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


December 15, 2016

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


September 7, 2016

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


September 7, 2016

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


September 7, 2016

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


April 18, 2016

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


April 18, 2016

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


February 24, 2016

The Federal District Disappears, Mexico City is Born

Originally, Mexico adopted a system similar to the U.S. in order to establish a territory that would function as a host to the federal government.  In the U.S., this district is Washington, D.C., and, in Mexico, it is the Federal District or Distrito Federal (D.F.).  The difference is that in Mexico the capital was founded in the place where politics, culture, religion and the economy of the country were historically located.  The focus of the discussion in Mexico was that residents of the Federal District did not enjoy the same rights as residents of the 31 states in the country. Residents of the Federal District could not elect a governor, have a state congress or elect mayors, among other political … read more


January 25, 2016

Political Thermometer

2016 marks the second half of the administration of President Enrique Peña Nieto.  Politically, this will be a crucial year as future presidential hopefuls will emerge.   For the political parties, 2016 will also be a significant year, as the governorships of 12 states are up for election.  Moreover, the election of Colima’s next governor is set to take place this month. Later this year, elections will be held in the states of Aguascalientes, Sinaloa, Tlaxcala, Hidalgo, Oaxaca, Quintana Roo, Tamaulipas, Chihuahua, Veracruz and Durango. In Puebla and Veracruz, a governor will be elected for a two year term given adjustments to electoral calendars.  In all states, the goal of the political parties is to defeat the Institutional Revolutionary Party (PRI … read more


October 19, 2015

Political Thermometer

The elections held on the first Sunday of June completely replaced the composition of Mexico’s House of Representatives (500 positions), as well as nine governorships, and a significant number of state legislative and city council positions throughout the country. This election had the greatest participation of political parties ever experienced in Mexican democracy and featured ten parties campaigning for the popular election. The mid-term elections were held during a complicated time for politics in Mexico, amid broad skepticism by the public. This political turmoil and public skepticism even gave way to a movement calling for the cancellation of the election, urging the public to stay away from the polls. Null votes (those cancelled by the voter by electing more than … read more