Issue 146-October/November 2019

December 19, 2019
Electric Mustang, Made in Mexico

300 Palabras

By Mario Melgar-Adalid

The Ford Mustang became a cultural icon, forever associated with the decade of the 1960s. It gained unprecedented acceptance in Mexico after it was first produced in 1964. With its distinct styling, the Mustang forms an important part of the Ford brand and the history of Mexican motoring. In the 1920s, the famous Ford Model T played a crucial role in Mexico City’s modernization. Given that Mexico was a natural market for the expansion of American industry, in 1925, the Ford Motor Company, S.A. inaugurated its plant and facilities in Mexico City, becoming the first automaker to assemble finished autos in this first plant. The Ford Model Ts had remarkable success and were popularly known as “Fortingos.” While many were … read more

December 19, 2019
The Political Temperature in 2019

Political Thermometer

The approaching year-end marks the first anniversary of Mexican President Andrés Manuel López Obrador’s (AMLO) administration. What stands out most about his tenure so far is the decided shift in policy direction away from that positions to which Mexican society had become accustomed. From the beginning of his administration, AMLO stated that he would bring change to Mexican politics. This change affected all areas of Mexican society, from social and economic to cultural matters. 2019 will be known for the stark polarization between defenders and detractors of the new policies. Such polarization indicates a climate of growing social tension among Mexicans. Fortunately, Mexico’s government and institutions are mature enough to maintain civility and the freedoms that guarantee democratic debate and … read more

Amendments to Mexico’s General Law of Import and Export Tariffs, Decree for the Border Region and Northern Border Region, PROSEC Decree and IMMEX Decree
By Miriam Name and Enrique Hill

On September 20, 2019, a new Decree was published in the Official Journal of the Federation which serves to amend numerous federal laws, including the Decree Amending the General Law of Import and Export Tariffs, the Decree establishing a General Import Tax for the Border Region and Northern Border Region, the Decree Establishing various Sector Promotion Programs (PROSEC for its Spanish acronym), and the Decree for the Promotion of the Manufacturing, Maquila and Export Services Industry (IMMEX for its Spanish acronym), effective as of September 22, 2019. The new amendments are mainly aimed at the steel sector, and feature the following highlights: The 15% tariff on the importation of various steel products remains in place. It should be noted that … read more

Evidentiary Value of Unsigned Electronic Paystubs under Mexican Labor Law
By Adrián Salgado

Mexico’s Sixth Collegiate Court on Labor Matters of the First Circuit recently published opinion I.6o.T. J/48 (10a.) entitled, “Paystubs issued electronically without the employee’s signature. Such electronic paystubs are valid for proving the items and amounts reflected therein.” In its opinion, the Court held that paystubs issued electronically, which are not signed by the employee receiving pay or salary, are valid to prove the amounts and items stated in the electronic paystubs and concluded this was consistent with Mexican customary law and practice. To reach such decision, the Court considered that the need to avoid making cash payments has caused employers to rely on direct bank deposits to pay their employees. Based on the foregoing, unsigned electronic paystubs will be … read more

Preventing Psychosocial Risk Factors in the Workplace
By Pablo Sáenz and Fernanda Magallanes

Mexican Official Standard NOM-035-STPS-2018 (“Standard 035” or the “Standard”) entered into force on October 23, 2019 in order to establish rules to identify and prevent psychosocial risk factors in the workplace, as well as to achieve a positive work environment in all workplaces. Standard 035 defines psychosocial risk factors as those that may cause anxiety, sleep problems, severe stress or adjustment disorders resulting from an employee’s job duties, work hours or exposure to traumatic events or workplace violence. The Standard sets forth numerous obligations for employers, some of which are mandatory from the time the Standard entered into force, and others that will be mandatory beginning in October 2020. The following is summary of the most relevant obligations. Mandatory obligations … read more

Update on Regulatory Aspects of Clean Energy in Mexico
By Antonio Riojas

Good news regarding Mexico’s electricity sector has been in short supply since late last year. Instead, the electricity industry has witnessed a series of controversial governmental decisions, which in certain cases clearly contradict the principles of Mexico’s 2013-2014 electricity reform. Such decisions included: exertion of unjustified political pressure against the former President of the Energy Regulatory Commission (“CRE” by its acronym in Spanish); the appointment of five new CRE Commissioners whose profiles and Senate confirmation hearings were criticized by both the general public and industry specialists; modifications to the strict legal unbundling of the Federal Electricity Commission (“CFE” by its acronym in Spanish); the cancellation of two proceedings to build transmission lines in Oaxaca and Baja California; and the suspension … read more