Issue 140 - Dec 2017 / Jan 2018

January 12, 2018
Economic Perspectives for 2018


By Mario Melgar-Adalid

The New Year began with several notable developments regarding the Mexican economy’s potential outlook for the medium term, and particularly for the remainder of 2018. At the end of 2017, the peso suffered a significant depreciation against the dollar, which required the Mexican Central bank, Banco de México, to take affirmative measures to prevent an even greater fall in Mexico’s currency. The “mini-devaluation” likely occurred as a result of the Trump’s administration’s tax plan, which was approved in December by the U.S. Congress and signed into law by President Donald Trump. The plan sought to lower taxes and generate higher consumption on the part of consumers and increased investment by producers. Such new tax law would have the effect, according … read more

January 12, 2018
The 2018 Political Year

Political Thermometer

For Mexico and the United States 2018 will be a crucial political year, notwithstanding the impact that the global economy will have on the lives on citizens of both countries. In the U.S., 2018 will feature congressional mid-term elections in which the composition of the U.S. Congress, and in particular the U.S. Senate, will be hotly contested. The current majority held in the Senate by the Republican Party could change if enough Democrats are elected to wipe out the small majority currently held by Republicans.   Mexico will hold its presidential elections this year and will vote on a completely new federal Congress. The 2018 Mexican election will feature 128 Senate contests, consisting of three senators from each state (96 … read more

Economic Indicators

Economic Indicators

On January 11, 2018, updated financial indicators reflected:

Peso/Dollar Exchange Rate:

$ 19.3433 pesos per Dollar.

Mexican Stock Exchange:

The Mexican Stock Exchange (BMV) closed at 48,799.39 points.

Interest Rates:

The Average Interbank Rate (TIIE) for a 28-day period was at 7.6299%

“Electricity Reform in Mexico” Third Annual Conference Highlights
By José Maria Lujambio

The third annual conference entitled “Electricity Reform in Mexico” was held in San Antonio, Texas on September 28-29, 2017. This recurring event was again organized by Kinetic ( It is worth noting the generous participation of many keynote speakers, such as: Commissioner Marcelino Madrigal of the Energy Regulatory Commission (“CRE”); Mauricio Herrera, General Director of Electrical Market Surveillance for the CRE; Efraín Téllez, founding partner of the Enix consultancy; Alejandro Ibarra, research professor of the EGADE of Tecnológico de Monterrey; as well as the illuminating contributions in discussion panels by Rebecca Bollenbach (Essentia Advisors); Cristian de Cosío (Cemex Energía); Alberto Ríos (Acclaim Energy); Austin Collins (Energy Network); Al García (Association of Energy Marketers); Tom Ottem (Yes Energy); Geoff Street (Tenaska); … read more

General Import and Export Tax and Tariff Modifications
By Edmundo Elías and Marisol de León

As part of the structural reform process of the General Import and Export Tariff and Tax Modifications (TIGIE) currently underway, which was discussed in issue 139 of this publication, Mexico’s President recently published a Decree that modifies Chapter 60 of the TIGIE, including the following decrees, in order to be consistent with such modifications: Decree Establishing the General Import Tax for the Border Region. Decree for the Promotion of the Manufacturing, Maquiladora and Export Services Industries (IMMEX Decree). The main changes that affect the textile industry are as follows: 120 tariff classifications were included, identifying in greater detail various goods from the textile industry, which result from the breaking down of 61 prior tariff classifications. The new 120 tariff classifications … read more

Tax Incentives and New Customs Regime in Special Economic Zones
By Fernando Juárez and Miriam Name

On September 29, 2017, the Declaration of the Special Economic Zones of Puerto Chiapas (Chiapas), Coatzacoalcos (Veracruz) and Lázaro Cárdenas-La Unión (Michoacán) (the “Zones”) was officially published. In the new Decree, various tax benefits were granted to investors who participate in these areas. Among the most notable benefits is the reduction of Income Tax (ISR) payments. Such benefit will reduce payments up to 100% for the first 10 years, and a reduction up to 50% of the tax incurred for an additional five years. In addition to the above, there is a 50% reduction in employer/employee quotas during the first 10 years and 25% in the subsequent five years. As a general rule, transactions carried out within the Zones are … read more

Steps to Follow for a Proper Receipt of Legal Notice from Mexican Labor Authorities
By Fernanda Magallanes

It is very common that when a company receives a subpoena or notification by a labor authority, such companies do not have the necessary knowledge to determine: (i) whether such company is the intended recipient of the documents conveyed; (ii) how the labor authority should identify themselves whenever conveying such documents; and (iii) what one should respond before said authority in order to avoid receiving documents that do not pertain to the company. In this regard, it is important for companies to ask the labor authorities to identify themselves during a company visit. The representative acting on behalf of the labor authority should present an official identification pertaining to the agency to which he or she belongs. Secondly, the labor … read more

Criminal Liability of Corporations in Mexico and the Need to Comply with the National Code of Criminal Procedures
By Sandra Campillo

In recent years, due to the growing development of the international economy and markets, technological innovations and corruption, the number of cases in which crimes are committed in the corporate and business context by organized criminal groups and not by individuals have increased. Such acts committed by criminal groups include those committed by Mexican entities, such as corporations, which can be structured in a complex manner in order to perpetrate various illicit acts.  Such illegal acts include money laundering, urban development crimes, environmental crimes and economic crimes, among others. In Mexico, prior to the publication in 2015 of the National Code of Criminal Procedures, companies could not commit crimes and, consequently, not be held criminally liable. Now, with the implementation … read more

Adverse Possession Rights in Agrarian Matters
By Jorge Ojeda

 In Mexico, lands subject to the social system known as “ejido” occupy more than 50% of the national territory. It is possible to acquire such lands by complying with a series of requirements, among them, that the owner/seller gives a right of first refusal as required by Article 84 of the Agrarian Law to “…family members of the seller, the persons who have worked the plots of land for more than a year, the ejido members, recognized neighbors, and the ejido…” The Agrarian Law establishes a particular method to notify such interested parties, including notification to an ejido board (Comisariado Ejidal). It also establishes that “if the notification is not made, the sale could be nullified.” It has been debated whether the violation of … read more