Issue 149 September/October 2020

October 29, 2020
The United States Presidential Election and its Effects in Mexico

300 Palabras

By Mario Melgar Adalid

No United States presidential election has stirred up as much excitement around the world, including Mexico, as the upcoming election between President Trump and former Vice-President Joe Biden. The election results will have a significant impact on the United States. If Trump is victorious, little change in the style of government can be expected, as well as a continuation of the policies of his first four years. If Biden wins, substantial changes in public policy and a different approach to international relations can be expected. The anticipation is so high, that during early voting more than 75 million Americans have thus far exercised their right to vote early, prior to the November 3rd election date. President Trump himself has already … read more

October 29, 2020

Political Thermometer

The Covid-19 pandemic seems to have cooled the political thermometer in Mexico. However, the proximity of the 2021 midterm elections has started to raise temperatures. On one hand, we have the unexpected and overwhelming triumphs of the Institutional Revolutionary Party (PRI) in the states of Hidalgo and Coahuila in elections for local congresses and city councils, in which the once invincible PRI regained momentum and prevailed over the National Regeneration Movement (“MORENA” by its acronym in Spanish) and National Action (PAN) parties. These triumphs were attributed to the good political work of the states’ governors, who are both affiliated with the PRI, and to the general disorder which exists within the ruling MORENA party. The MORENA party is currently in … read more

Economic Indicators

On October 28, 2020, updated financial indicators reflected:

Peso/Dollar Exchange Rate: $20.8798 pesos per Dollar.

Mexican Stock Exchange: The Mexican Stock Exchange (BMV) closed 37,393.71 points.

Interest Rates: The Average Interbank Rate (TIIE) for a 28-day period was at 4.5215%.

Validation of Mexican Collective Bargaining Agreements during the COVID-19 Pandemic
By Pablo Sáenz and Fernanda Magallanes

As a result of the 2019 Mexican Labor Law reform and the signing of the USMCA, the Protocol for Validating Existing Collective Bargaining Agreements, which was published in the Official Journal of the Federation on July 31, 2019 (“Protocol”), entered into force on August 1, 2019. Based on such change, all unions in Mexico must validate their collective bargaining agreements within a maximum term of four years, which ends on May 1, 2023. The validation process involves unions consulting with their members and having them vote on whether to approve the contents of their collective bargaining agreement. It is important to note that wages under such collective bargaining agreements are reviewed on an annual basis, while the overall terms of … read more

The State of Nuevo León, Mexico Enacts Important Reform for Commercial Leases Following Declaration of Health and Sanitary Emergency
By Jorge Ojeda

On October 2, 2020, Decree 358 was published in the Official Journal of the State of Nuevo León, adding a second paragraph to article 2326 of the Civil Code for the State of Nuevo León (“CCNL”), which reads as follows: “Art. 2326.- If the use of the property is impeded only in part, the tenant may request a partial reduction in rent, based on the opinion of experts, unless the parties elect to terminate the contract, if the impediment lasts as long as the time set forth in the prior article. Tenants of real property conducting commercial activities whose use and enjoyment of such real property was disturbed as a result of the declaration of a civil protection or sanitary … read more

Mexico Adopts Changes to Information that Must Be Submitted to the National Registry of Foreign Investments
By Floriberto Morales

On September 4, 2020, Mexico published a new Decree requiring new forms to be used for requests and notices filed with its National Registry of Foreign Investments (“RNIE” by its initials in Spanish) in the Official Journal of the Federation. The new forms mandate the inclusion of more detailed information be provided in quarterly and in the annual RNIE economic reports. The following are the most significant changes: Important changes to the Quarterly Economic Report Form: • Copies of financial statements, as well as debtors and creditors’ schedules, must now be provided. • A new form called “Geographical destination of the investment or origin of the divestment” is now mandatory. • A “State presence” form requires information regarding the presence … read more