Issue 147-Jan/Feb 2020

April 3, 2020
Mexico and the Coronavirus

300 Palabras

By Mario Melgar-Adalid

The effects of the COVID-19 pandemic have impacted Mexico and many other countries throughout the world. With that said, it appears the impact in Mexico has been delayed as compared to what has already happened in China, Italy and other countries. This led the Mexican government to design a precautionary strategy, which has not been entirely understood by Mexican society. Users of social media, the press and mass media outlets have been particularly critical of the measures, or lack thereof, to contain the pandemic. Mexican President Andrés Manuel López Obrador has faced harsh criticism for initially trying to maintain an optimistic attitude, initially rejecting specific policy proposals, such as the avoidance of physical contact through social distancing. Mexican health authorities … read more

April 3, 2020

Political Thermometer

The pandemic generated by COVID-19 has repercussions in all imaginable areas. Mexican politics are not exempt. The position of the Mexican government in the face of crisis has shown the political strength of the group led by President López Obrador. Regardless of the press, media and social media criticism, the Congress has seen slight opposition and few complaints. The PAN and PRI congressmen in the Mexican lower House of Representatives stated that social distancing measures should be coordinated with the governments of the 32 federal entities. PAN representatives specifically insisted that the measures adopted must be coordinated by the General Health Council, headed by the President of the Republic, in which federal and state officials participate, but also universities and … read more

Economic Indicators

On April 6, 2020, updated financial indicators reflected:

Peso/Dollar Exchange Rate: $24.6850 pesos per Dollar.

Mexican Stock Exchange: The Mexican Stock Exchange (BMV) closed at 34,381.56 points.

Interest Rates: The Average Interbank Rate (TIIE) for a 28-day period was at 6.6850%

Requests by Pemex and CFE to the Energy Regulatory Commission
By José María Lujambio and Antonio Riojas

Economic regulators exist to correct the failures of certain markets, and thus promote their efficient development. These regulatory agencies have multiplied in recent decades throughout the world in order to protect consumers and users of certain products and services against, for example, conditions involving natural or legal monopolies. The goal has been to create a level playing field for regulated companies to compete in a fair environment and to guarantee open access to network infrastructure. In Mexico, the purpose of the Mexican Energy Regulatory Commission (“CRE” by its acronym in Spanish) is to promote the efficient development of midstream and downstream activities in the hydrocarbons and petroleum sector, as well as in the value chain of the electricity industry. Despite … read more

Ordinary and Default Interest – Usury
By Adrián Salgado

On December 13, 2019, the Plenary Third Circuit in Civil Matters issued an opinion contradictory to opinion PC.III.C.J/50 C (10a.), entitled: “Ordinary and default interest in commercial matters. Such must be analyzed independently in order to determine whether they are usurious, even when they are incurred simultaneously and, therefore, coexist.” In said opinion, the court ruled that, in commercial matters, when ordinary and default interest obligations exist at the same time, the analysis to determine the issue of whether interest is usurious must be assessed separately, that is, without adding both types of interest to each other. The court made such determination because it considered the characteristics of these types of interest to be different and because default interest, being … read more

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

Mexico to Create Federal Mediation and Labor Registry Center
By Pablo Sáenz and Fernanda Magallanes

On January 6, 2019, Mexico’s federal congress enacted a law detailing how it will create and regulate a new Federal Mediation and Labor Registry Center (the “Federal Center”). The Federal Center is expected to begin operations during the fourth quarter of 2020. The main purpose of the Federal Center is to oversee mediation in federal labor cases involving individual workers who file claims against their employers, as well as to oversee collective bargaining issues. Additionally, the Federal Center is tasked with the following matters: Keeping registration records of unions, collective bargaining agreements and internal work rules; Assisting unions in the voting process to elect union officials; Sending voting notifications and organizing the voting process to approve union contracts; Issuing certificates … read more

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.