Legal Updates Articles


April 3, 2020

Entry into Force Date of the USMCA

By Marissa Rodriguez

The United States, Mexico and Canada Agreement (USMCA) is scheduled to enter into force on June 1, 2020. In a letter, dated March 30, 2020, the United States Senate urged Robert Lighthizer, United States Trade Representative, to seriously consider delaying the date the USMCA will enter into force, noting that the COVID-19 pandemic has impacted governments and businesses in such a way that will not allow enough time and resources to ensure a smooth transition from the North American Free Trade Agreement (NAFTA) to the USMCA.


April 3, 2020

New Amounts in Controversy Applicable in Commercial Oral Trials and Expedited Commercial Oral Trials

By Jorge Sánchez Cubillo

The reforms to the Mexican Commerce Code, published on January 25, 2017 and amended by means of a decree dated March 28, 2018, set forth the time periods for transitioning from the traditional written trial system to commercial oral trials. Beginning January 26, 2020, lawsuits with an amount in controversy of up to four million pesos (approximately $210,500 U.S. Dollars) will be tried as Expedited Commercial Oral Trials, and those with amounts in controversy above such amount will be tried as Expedited Commercial Written Trials. On the other hand, all commercial trials for which a special trial procedure is not provided by applicable law must be tried as Commercial Oral Trials, irrespective of the amount in controversy. The principal objective … read more


March 30, 2020

UNITED STATES-MEXICO-CANADA AGREEMENT CHAPTER 15 CROSS-BORDER TRADE IN SERVICES

I. INTRODUCTION. Chapter 15 is one of the key chapters of the USMCA, as it establishes rules and obligations to facilitate cross-border trade in services among the Parties. While a few aspects of Chapter 15 remain as compared with the NAFTA, important differences exist in between the two, which were designed to positively impact cross-border services and ensure the growth of international business in the USMCA region. II. EXECUTIVE SUMMARY. The USMCA’s Chapter 15 on Cross-Border Trade in Services replaces Chapter 12, Part 5 of the NAFTA. While a few areas such as the scope, National Treatment, and Most Favored Nation (MFN) treatment remain the same, significant differences can be found with respect to modernization, expanding market access for labor … read more


March 28, 2020

Department of Economy

On March 23, 2020, official notice number 414.2020.654 dated March 20, 2020, was published on the webpage www.snice.gob.mx, pursuant to which the Department of Economy announced various measures to remotely maintain foreign trade transactions operational. In summary, the following was announced by means of said official letter: The electronic program “Ventanilla Única” will continue to operate in the regular manner. For IMMEX/PROSEC transactions that require submission of supplementary information, it must be sent to the following e-mail address: dgce.tramitesc@economia.gob.mx. With respect to applications for expansion of sensitive goods and subsequent IMMEX expansions, the Department of Economy exempts the requirement for ratification of such by an authorized public accountant. E-mail addresses were provided for use in connection with any and all … read more


March 27, 2020

UNITED STATES-MEXICO-CANADA AGREEMENT CHAPTER 19 DIGITAL TRADE

I. INTRODUCTION. The inclusion of Chapter 19 in the USMCA is one of the most significant indications of the modernization of the NAFTA and a major reason the Office of the United States Trade Representative has described the USMCA as a 21st Century Trade Agreement. The NAFTA took effect in 1994, at a time when the internet was new and “digital trade” did not yet exist, so the NAFTA did not include any digital trade provisions. The USMCA addresses digital trade by including Chapter 19 Digital Trade, in addition to other chapters that include provisions relating to digital trade, such as Chapter 7 Customs Administration and Trade Facilitation, Chapter 17 Financial Services, and Chapter 20 Intellectual Property. II. EXECUTIVE SUMMARY. … read more


March 27, 2020

UNITED STATES-MEXICO-CANADA AGREEMENT CHAPTER 15 CROSS-BORDER TRADE IN SERVICES

I. INTRODUCTION. Chapter 15 is one of the key chapters of the USMCA, as it establishes rules and obligations to facilitate cross-border trade in services among the Parties. While a few aspects of Chapter 15 remain as compared with the NAFTA, important differences exist in between the two, which were designed to positively impact cross-border services and ensure the growth of international business in the USMCA region. II. EXECUTIVE SUMMARY. The USMCA’s Chapter 15 on Cross-Border Trade in Services replaces Chapter 12, Part 5 of the NAFTA. While a few areas such as the scope, National Treatment, and Most Favored Nation (MFN) treatment remain the same, significant differences can be found with respect to modernization, expanding market access for labor … read more


March 23, 2020

Mexican Courts Announce Suspensions of Operations

Dear Clients and Friends, Given the impact caused by the COVID-19 pandemic, several jurisdictional authorities throughout Mexico, at both the federal and state level, have decided to halt their operations and suspend terms for an undetermined period. Below is a list of several governmental  authorities and the periods of suspension for each: Governmental Authorities Periods of suspension Supreme Court of Justice March 18 to April 19, 2020 Federal Judicial System March 18 to April 19, 2020 Federal Court of Administrative Justice March 18 to April 19, 2020 Federal Court of Conciliation and Arbitration March 18, 2020 until further notice Mexico City Judicial System March 18 to April 19, 2020 Mexico City Court of Administrative Justice March 18 to April 17, … read more


March 6, 2020

UNITED STATES-MEXICO-CANADA AGREEMENT CHAPTER 4 RULES OF ORIGIN

I. INTRODUCTION. The USMCA’s Chapter 4 on Rules of Origin is relevant for trade among the Parties, because it sets forth the criteria to determine the origin of a product, therefore determining whether a product is subject to preferential tariffs and to other non-tariff-based benefits. In this regard, the USMCA implements important changes to the existing Rules of Origin chapter of the North American Free Trade Agreement (NAFTA), particularly with respect to the automotive and auto parts industries, as detailed below. II. EXECUTIVE SUMMARY. Chapter 4 of the USMCA contains the agreements and provisions regarding Rules of Origin, both general and specific, establishing the criteria and procedures to determine the applicability of tariff and non-tariff-based benefits offered by USMCA, including … read more


March 6, 2020

UNITED STATES-MEXICO-CANADA AGREEMENT CHAPTER 4 RULES OF ORIGIN

I. INTRODUCTION. The USMCA’s Chapter 4 on Rules of Origin is relevant for trade among the Parties, because it sets forth the criteria to determine the origin of a product, therefore determining whether a product is subject to preferential tariffs and to other non-tariff-based benefits. In this regard, the USMCA implements important changes to the existing Rules of Origin chapter of the North American Free Trade Agreement (NAFTA), particularly with respect to the automotive and auto parts industries, as detailed below. II. EXECUTIVE SUMMARY. Chapter 4 of the USMCA contains the agreements and provisions regarding Rules of Origin, both general and specific, establishing the criteria and procedures to determine the applicability of tariff and non-tariff-based benefits offered by USMCA, including … read more


March 6, 2020

UNITED STATES-MEXICO-CANADA AGREEMENT CHAPTER 3 AGRICULTURE

I. INTRODUCTION. One of the most significant aspects of NAFTA was the elimination of almost all quotas and tariffs on agricultural trade between the United States and Mexico, as well as the elimination of most restrictions on agricultural trade between the United States and Canada. As a result, Canada and Mexico became, respectively, the first and third largest export markets for the United States’ food and agricultural products, comprising 64% of total food and agricultural exports in 2018. As a result of NAFTA, Mexico and Canada also export substantial amounts of agricultural products to the United States. II. EXECUTIVE SUMMARY. Chapter 3 of the USMCA addresses agriculture. The USMCA maintains all the NAFTA’s existing duty-free treatment but also includes several … read more