Issue 142 – Jan / Feb 2019

February 22, 2019


By Mario Melgar Adalid

A New Era in U.S. – Mexico Relations The political ramifications of Mexico’s presidential election have brought many developments, including changes in the U.S.-Mexico relationship. Contrary to what many had believed, the victory of Andres Manuel Lopez Obrador (AMLO) has not generated nationalistic ill will or high-sounding declarations against the U.S. Instead, a conciliatory tone has prevailed. On the day of Mexico’s federal elections, U.S. President Donald Trump tweeted, regarding AMLO, that he was “looking very much forward to working with him.”  Trump added there was much to do for the common benefit of the United States and Mexico. President Trump has stated that he will have a good relationship and would work with Mexico’s new president to resolve immigration … read more

February 22, 2019

Political Thermometer

The triumph of the National Movement for Regeneration (Movimiento Regeneración Nacional MORENA) in not only Mexico’s presidential election, but particularly in the two houses of Mexico’s Federal Congress, has led to an interesting political debate. Now, many in Mexico are asking if it is a good idea for a president to have a majority of congressional support on his side or, to the contrary, if democracy would be further strengthened by having strong opposition in Mexico’s legislative chambers. Those favoring a strong government that has the support of its legislative branch aver that such alignment allows for greater efficiency in the design of public policy, institutional change and obtaining expeditious results, without the wasting of time or effort by politicians. … read more

Economic Indicators

On February 21, 2019, updated financial indicators reflected:

Peso/Dollar Exchange Rate: $19.29 pesos per Dollar.

Mexican Stock Exchange: The Mexican Stock Exchange (BMV) closed at 43,435.21 points.

Interest Rates: The Average Interbank Rate (TIIE) for a 28-day period was at 8.5923%

Evidentiary Value of Photocopies in Mexican Labor Board Proceedings
By Adrián Salgado

The Sixth Collegiate Court on Labor Matters of the First Circuit published judicial decision number I.16o.T.J/2(10a), which reads: “Plain photocopies submitted in a labor board lawsuit. Regarding its probative value, when the origin, authorship or preparation of the original document is attributed to the opposing party to the offeror.” In this case decision, the Court ruled that the Labor Board may grant evidentiary value to a photocopy, including plenary probative value to a simple copy of a document whose origin, authorship or preparation of the original is attributed to the opposing party, if such party does not object to the document or does so in general terms, without objecting to its authorship and existence.  Such a non-objection will be considered … read more

Maternity, Paternity and Adoption Leaves of Absence Rights in Mexico
By Pablo Sáenz and María Fernanda Magallanes

Article 170 of Mexico’s Federal Labor Law provides the right of working mothers to paid for maternity leave, six weeks before and six weeks after the birth of a child.  It also provides the possibility to transfer from the pre-partum maternity leave period up to four (out of six) weeks, to the post-partum maternity leave period if an employee requests and obtains written approval from a physician at Mexico’ Social Security Institute (IMSS). If the child is born with a disability or requires a hospital stay to receive medical attention, the post-partum leave period may be increased to eight weeks.  The length of maternity leave may also be increased if a working mother is unable to return to work due … read more

Important Amendments to Mexican Federal Labor Law and Union Rights
By Javier Zapata

Mexico’s Federal Constitution was amended in February 2017 to provide the legal foundation to create new specialized Labor Courts to resolve labor and employment disputes, replacing the Mediation and Arbitration Labor Boards that currently operate under the Mexican Executive Branch.  Further, this amendment guarantees the rights of workers to bargain collectively, mandating that unions prove that they represent workers, and implements free and confidential voting process to elect union representatives, approve union contracts and to resolve disputes between unions.   Additionally, with the Mexican Senate’s ratification of International Labor Organization (ILO) Convention 98 and proposed execution of the United States-Mexico-Canada Agreement (USMCA), which remains pending approval by the legislative bodies of Canada, Mexico and the United States, Mexico is now … read more

Mexico Implements New Deductibility Rules for Tax Losses
By Miriam Name and Edgar González

The presumption may be made by the tax authority when it detects that a taxpayer has claimed deductions based on tax losses in any of the following scenarios: The taxpayer declared tax losses in any of the three fiscal years subsequent to its formation, in an amount greater than the value of its assets, and more than half of its deductions are related to transactions with related parties. The taxpayer declared losses after the three fiscal years following its formation, with more than half of its deductions relating to transactions with related parties, and such deductions would have increased by more than fifty percent (50%) with respect to those tax losses incurred in the immediately preceding fiscal year. The taxpayer … read more

Electricity Reform and Political Shift in Mexico
By José María Lujambio

Despite the recent political storm in the Mexican electricity sector, it appears that the electricity reform of 2013 and 2014 is protected in various ways from political and ideological shifts in the federal administration. The strongest evidence of such protection lies in the fact that the main contents of the reform were established at a constitutional level, specifically in both the substantive and the transitory articles of the decree of constitutional reforms published in the Official Journal of the Federation on December of 2013. A constitutional amendment requires the vote of a two-thirds majority in both chambers of Federal Congress, a majority of state legislatures, and the Mexico City legislature. No political party or coalition has, on its own, gained … read more

Recent Amendments to Mexico’s Industrial Property Law
By Antonio Campero

2018 saw two major amendments to Mexico’s Industrial Property Law. The first amendment was enacted on March 13, 2018, while the second amendment followed on May 18, 2018. The following are the most relevant changes enacted in the March 2018 amendment: The definition of “Industrial Designs” was changed, and the validity of an Industrial Design registration was increased to 25 years. Prohibited trademarks were added. Regulations regarding “Protected Geographical Indications” were strengthened and the definition of “Appellations of Origin” was changed; a new chapter was added to regulate the procedure to register both. Regulations relating to Protected Geographical Indications and Appellations of Origin from foreign countries were also added. Additional cases of infringement were included. Production, storage, transportation, distribution or … read more