Issue 153 - May-June 2021

June 25, 2021
Mexico - USA, High Profile Visits

300 Palabras

By Mario Melgar Adalid

A few hours after the much-anticipated midterm elections in Mexico, two high level officers from the United States visited Mexico: Vice President Kamala Harris and Alejandro Mayorkas, the Secretary of the Department of Homeland Security. Vice President Harris met with Mexican President Andrés Manuel López Obrador. Beyond the warm and friendly nature of the meetings, some important topics were discussed, such as providing an economic boost to the shared region and the joint commitment to strengthen a sustainable and fair economic growth, particularly after the pandemic. It was agreed that both countries will leverage the USMCA’s mechanism to bring certainty and dynamism to the region’s economies. The two leaders agreed to strengthen various aspects of the bilateral relationship. In regard … read more

June 25, 2021

Political Thermometer

The midterm elections were not only the largest elections in Mexico’s history, but the most anticipated. The results showed the general interest of Mexicans in domestic elections, something unusual for a country which, in recent last years, was somewhat skeptical of the political processes. Notwithstanding such prior attitudes, this time there was clear interest in the outcome. This was a complex election, and an absolute winner cannot be named because Mexico’s lower house of Congress, mayors for Mexico City’s boroughs, mayoralties and state legislatures were all at stake, as well as 15 state governorships. One can say that every contestant won something without having an absolute winner or an absolute loser. Most probably, the main winners were the citizens who … read more

Economic Indicators

On June 28, 2021, updated financial indicators reflected:

Peso/Dollar Exchange Rate: $19.7930 pesos per Dollar.

Mexican Stock Exchange: The Mexican Stock Exchange (BMV) closed 50,351.21 points.

Interest Rates: The Average Interbank Rate (TIIE) for a 28-day period was at 4.5200%.

Ten Important Points for Mexican Investors in the U.S. to Consider
By Robert M. Barnett and Natalie Cerón

The U.S. business environment offers a favorable climate for foreign companies and individuals seeking to achieve positive results for their trade and investment activities. When assessing potential business opportunities in the U.S., it is essential for such foreign parties to carefully prepare a detailed plan which takes into consideration prevailing U.S. legal, tax and cultural aspects.  The points described in this article summarize some of the most important topics that foreign businesses and investors should understand before doing business in the U.S. Experience has shown that successful projects require foreign businesses to assemble a team of legal, financial and tax advisers who are able to advise the business as it undertakes a particular trade or investment project in the state … read more

First Complaints Filed Under the USMCA’s Rapid Response Labor Mechanism
By Pablo Sáenz y Daniel Ramírez

First Request for Rapid Response On May 11, 2021, the first request for Rapid Response under the Labor Mechanism set forth in the United States-Mexico-Canada Agreement (“USMCA”) was filed by the American Federation of Labor and Congress of Industrial Organizations (“AFL-CIO”), Public Citizen, and the National Independent Union for Employees of Industries and Services (“SNITIS” for its acronym in Spanish). The request was filed in connection with an allegation that Tridonex, a Mexican automotive company, violated its employees’ rights. The AFL-CIO alleges that employees have been harassed and fired because of their intention to join the SNITIS union. The complaint is based on several allegations that Tridonex violated its employees’ labor rights, including: (i) that employees have not been allowed … read more

Mexico’s Deregulation of PEMEX as a Seller
By José María Lujambio and Iván Castañeda

A Decree was published in the Official Journal of the Federation (“DOF” for its acronym in Spanish) on May 19, 2021, amending the thirteenth transitory article of Mexico’s 2014 Hydrocarbons Law (the “Decree”) and granting the Energy Regulatory Commission (“CRE” for its acronym in Spanish) 30 days to abolish all general administrative regulations that had been issued to implement the “asymmetric” regulation of Petróleos Mexicanos and its subsidiaries and affiliates (“PEMEX” for its acronym in Spanish). CRE complied almost immediately on May 21, publishing Resolution A/015/2021in the DOF, which cancelled a total of 49 prior resolutions issued for such purpose. The asymmetric regulation was based on the abovementioned transitory article, which granted authority to the CRE to establish general contractual … read more

New Rules on Capitalizing Liabilities for Tax Purposes
By Miriam Name and Esteban Gómez Aguado

On December 8, 2020, Mexico published important new Miscellaneous Tax Rules amending numerous tax regulations in the Official Journal of the Federation. Article 30 of the Federal Tax Code is among the regulations amended, and the latest rules introduce new obligations with respect to maintaining supporting documents demonstrating the economic reasons behind corporate capital increases and decreases. In regard to capital increases resulting from a capitalization of liabilities, in addition to the corporate meeting minutes approving such increases, companies must also provide a certification that, from an accounting perspective, shows the existence of the liabilities and their corresponding values. The certification must be issued in compliance with the requirements set forth in the general rules issued by Mexican tax authorities … read more

U.S. Government Publishes Rules for Investigating Mexican Carriers Operating in the United States
By Ramón Concha and Pablo Sáenz Baltazar

On April 8, 2021, the U.S. International Trade Commission (“ITC”) published details on its implementation of rules with respect to the investigation of Mexican carriers providing cross-border trucking services in the United States.  The purpose of the investigations is to determine whether the operations of Mexican carriers will cause or threaten to cause material harm to U.S. carriers. The new rules arose from complaints by the ITC and various trucking associations in the United States with respect to the manner in which cross-border trucking services were regulated in the North American Free Trade Agreement (“NAFTA”). As a result of negotiations on the issue, in the United States-Mexico-Canada Agreement (“USMCA”) the parties agreed on the possibility of the ITC issuing new … read more

Powers of Attorney Granted Abroad by Entities-Intellectual Property
By Adrián Salgado

Recently, the Second Chamber of Mexico’s National Supreme Court of Justice published the case decision, which is a precedent by contradiction, under number PC.I.A. J/170 A (10a.), which decision is titled: “Powers of attorney granted by entities abroad. Interpretation of Article 181, Section IV, of the Industrial Property Law (in force as of November 4, 2020).” In such binding precedent, all members of the Administrative Court for the First Circuit held that from a historic, systematic and harmonious interpretation of article 181, section IV of the aforementioned Law, it is not enough that a power of attorney abroad is granted pursuant to the applicable laws of the place where is granted, or pursuant to international treaties, but also that “it … read more