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Virtual Trade Summit USTR-Mexico | Mexican Economic Newsletter

26 Mar , 2021  

Mexican Economic Newsletter, International Trade News in Mexico

Trade Summit USTR-Mexico 2021

On March 23, Tatiana Clouthier, head of the Ministry of Economy, met virtually with U.S. Trade Representative (USTR), Katherine Tai, to discuss the importance of the bilateral trade relationship and the full implementation of the USMCA. 

Both sides committed to future engagement on shared priorities such as economic recovery in the context of the Covid-19 pandemic and the full implementation of Mexico’s labor reform. Both sides also agreed on the mutual benefit derived from strong bilateral agricultural trade.

US Associations Trade Express Concerns Before and After USTR-Mexico Trade Summit 

One day before this meeting, a group of 27 U.S. agricultural associations sent a letter to Secretary of Agriculture Tom Vilsack and the USTR that is available on the National Potato Council’s website. In addition, the Alliance for Trade Enforcement also issued a letter to the USTR this Wednesday.  

Both associations have expressed their concerns about certain measures issued by the Mexican government that has already or will negatively impact a portion of U.S. agricultural exports and other sectors.

What are the main trade concerns?

  • Glyphosate /GM Corn Barn
  • Increasing Obstacles to Dairy Trade
  • Organic Export Certification Requirements
  • Corn Product Disparagement
  • Biotechnology Approvals
  • Meat Industry Market Access and Geographical Indications
  • Potato Import Ban
  • Front-of-Pack Labeling (NOM-051)
  • Telecommunications, Broadcasting, and Audiovisual Services
  • Biopharmaceuticals
  • Energy and Power Generation
  • Customs and Trade Facilitation
  • Electronic Payment Services

Will one of these issues spark a trade dispute? 

VTZ has addressed some of these issues in our previous newsletters and /or digital content. If you have any questions, please let us know. 

International Reactions to the Electrical Industry Law Reform 

Prior to the Electrical Industry Law reform publication in the Official Gazette on March 9, 2021, some of Mexico’s trading partners expressed their concerns about the impact of said reform on energy investments. If you wish to know more about this controversial reform, we consider this content relevant: Wilson Center

US Reactions

The Vice President for the Americas of the U.S. Chamber of Commerce, Neil Herrington, expressed that the reform was deeply troubling because it would reestablish a monopoly in the sector and affect Mexico’s commitments to the U.S. under the USMCA.

Canadian Reactions

Mary Ng, Canadian Trade Minister, expressed through a letter sent to the Mexican Ministry of Economy, emphasizing Mexico’s obligation to maintain a stable and predictable business environment for Canadian companies.

European Union Reactions

In the same vein, EU’s representatives in Mexico recognized Mexico’s sovereign right to define its energy policy. However, they pointed out that this could lead to international arbitration, as well as a loss of confidence on behalf of investors.

Mexican Judges Grant Injunctions Against the Reform

Meanwhile, some companies in Mexico filed a constitutional remedy (amparo) against the electrical reform requesting the suspension of the reforms effects. A couple of Judges have granted suspensions (injunctions) and with general effects. In other words, the suspensions protect all companies that may be affected by the electrical reform in order to avoid market distortions.

VTZ Comment

At VTZ, we certainly believe that this reform could eventually trigger Investor-State disputes per FTAs and/or BIT. Furthermore, we consider it possible that the U.S. and Canada could initiate a USMCA (State-State) dispute, so there trade retaliation is possible in the event that an international panel rules against Mexico.

Investment in Mexico: 200 Projects

During the inauguration of the 104th General Assembly of the American Chamber of Commerce (Amcham), the Minister of Economy, Tatiana Cloutier, mentioned that the Mexican Government has a list of 200 studies and projects in which U.S. companies will be invited to invest. These projects have been worked in coordination with international organizations and focus on nine states in the southeast of Mexico. 

In this regard, the incoming president of Amcham, Vladimiro de la Mora, added that Amcham members are committed to Mexico; however, to continue being a reliable, attractive, and safe partner for investment, Mexico needs to ensure an essential level of security, respect for the law and legal certainty. 

Eventually, the projects will be announced, and we deem that such projects will be open to all companies, regardless of their nationality or origin. We expect that some projects will be related to the Isthmus Corridor project.

Sources: El UniversalLa JornadaEl Informador 

Changes in the Ministry of Economy

Last week, the Ministry of Finance issued a statement to inform that as of April 1, Ernesto Acevedo Fernández will be appointed as Alternate Executive Director of the World Bank.

As of the 1st of April Ernesto Acevedo Fernández will represent Mexico before the World Bank (@BancoMundial) as Alternate Executive Director of that institution.

— Hacienda 🇲🇽 (@Hacienda_Mexico) March 18, 2021

Ernesto Acevedo is currently acting as undersecretary of Industry, Trade and Competitiveness at the Ministry of Economy. Mr. Acevedo is going to be substituted by Héctor Guerrero. According to the declarations of the Ministry of Economy, Tatiana Clouthier, Mr.  Guerrero has worked in the private sector for a long time and joined the public sector when Andrés Manuel López Obrador became president. 


 


At this time, Mr. Guerrero is the Coordinator of the National Council for Investment, Employment and Economic Growth (COFINECE, acronym in Spanish), which is chaired by the Head of the Presidential Office. During the announcement, the Ministry also mentioned Alfonso Romo, who used to be in charge of the Presidential Office and is currently a sort of liaison between the private and public sectors. 
 

What are the responsibilities of the Undersecretary of Industry?

  • Coordinate trade remedy investigations.
  • Design industrial development and innovation policies.
  • Design policies to promote domestic trade, business growth, and production chains
  • Design actions, plans, and programs for the industry and trade sectors, and also for the services and productive chains sectors.
  • Policies to promote international trade competitiveness.
  • Trade regulations, standardization, and conformity assessment.
  • National content requirements in the energy sector.

Cannabis Law Regulation

Last week, the Chamber of Deputies approved the Federal Law for the Cannabis Regulation project. This law will allow the recreational use of marijuana (up to 28 grams), and the possibility of self-cultivation, including importation, through permits.
 

The project-law will return to the Chamber of Senators for the approval of the changes made by the Chamber of Deputies in order to conclude the legislative process.

Source: El Economista

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English, News

VTZ in the Day of China

14 Jan , 2020  

Inversión china en México, intercambio comercial México-China, EEUU, Canadá y China, Día de China en la Secretaría de Economía, oportunidades de negocio México-China

Mexico’s second trading partner: China

Yesterday, the 13th of January,  the Ministry of Economy organized the “Day of China”, where the Minister, Graciela Marquéz, said that Mexico is a fertile ground for the Asian giant’s capital. The Minister of Economy commented that the Mexican government seeks to increase exports to China, since “it is probably the most attractive market in the world.”Inversión china en México, intercambio comercial México-China, China, Día de China en la Secretaría de Economía, oportunidades de negocio México-China, inversión,

The Chinese ambassador to Mexico, Zhu Qingqiao, also attended to the event and gave a speech about the relevance and role of China in the world economy, noting that “in the last 5 years China’s average contribution to economic growth world is over 30%. Currently, the Chinese economy is moving from accelerated growth to a much better quality. ”

The Mexican ambassador to China, José Luis Bernal, said that before the end of the year one of the large Chinese automotive companies will establish a production plant in our country. The Mexican ambassador to China stressed that the automotive company will join two other companies that seek to have a commercial presence in Mexico, a company that also manufacture electric cars.

Chinese Desk in Mexico – VTZ

Chinese Desk, Inversión china en México, intercambio comercial México-China, China, Día de China en la Secretaría de Economía, oportunidades de negocio México-China, Susana Muñoz, Chinese Desk de VTZ, industria automotriz, maquiladora, Adrian Vazquez, Dora Luz, Emilio Arteaga Vazquez, Mariana Rivera

Dora Luz, Adrian Vazquez, Mariana Rivera, Emilio Arteaga

VTZ participated in the “China Day”, where it promoted its Chinese Desk among the Chinese business sector, a project that seeks to be the contact point for Chinese individuals and companies that seek to do business in Mexico. We prepared a presentation that was delivered to the Minister of Economy and the Ambassador of China in Mexico:

Chinese Desk,Inversión china en México, intercambio comercial México-China, EEUU, Canadá y China, Día de China en la Secretaría de Economía, oportunidades de negocio México-China, Susana Muñoz encabeza el Chinese Desk de VTZ, inversión china en la industria automotriz

 

Chinese Desk,Inversión china en México, intercambio comercial México-China, EEUU, Canadá y China, Día de China en la Secretaría de Economía, oportunidades de negocio México-China, Susana Muñoz encabeza el Chinese Desk de VTZ, inversión china en la industria automotriz

Our Chinese Desk is directed by Susana Muñoz, who will be our main contact with businesses in China and Asia. Ms. Muñoz is based in Hong Kong and has extensive experience in business opportunities, trade, investment promotion, product development, and economic and market research in Mexico and China.

In addition, Karla Loyo collaborates in our Chinese Desk. Ms. Loyo has worked in government agencies, such as the Mexico-China Chamber of Commerce and Technology, the Mexican Chamber of Commerce in Hong Kong, among others. This project is also supported by our managing partner, Adrián Vázquez, and junior partner, Emilio Arteaga, as well as all the team of VTZ.

VTZ thanks the Business Council for Foreign Trade, Investment and Technology, A.C. (COMCE) for providing a space to promote our Chinese Desk.

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News

Boletín Fiscal – Decreto de Estímulos Fiscales de la Región Fronteriza Norte

4 Jan , 2019  

VTZ abogados, región fronteriza norte, estímulos fiscales, Jorge Montes, Abogados Fiscalistas en México

Estímulos Fiscales de la Región Fronteriza Norte

El pasado 31 de diciembre de 2018 fue publicado en el Diario Oficial de la Federación el denominado “Decreto de estímulos fiscales región fronteriza norte”, el cual establece ciertos estímulos fiscales en materia de Impuesto sobre la Renta (ISR) e Impuesto al Valor Agregado (IVA) que estarán vigentes durante 2019 y 2020.

 

Nuestro Boletín Fiscal, preparado por nuestro socio Jorge Montes, se abordan las partes más relevantes del referido decreto, tales como los municipios que conforman la región fronteriza norte, los sujetos que pueden beneficiarse de los estímulos fiscales, los requisitos para aplicar los beneficios, entre otras cuestiones.

Boletín Fiscal – Decreto de Estímulos Fiscales Región Fronteriza Norte 

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Update: Special Economic Zones

17 Aug , 2017  

On June 23, 2017, the Inter-Ministerial Commission approved the creation of five SEZ, namely those that will be located in the states of Chiapas (Puerto Chiapas), Veracruz (Coatzacoalcos), Michoacán (Lázaro Cárdenas), Guerrero (Puerto Unión), Yucatán (Progreso) and Oaxaca (Salina Cruz).

Now, the next step is for the President to issue the Decrees that will officially create each SEZ. It is expected that in the upcoming months, or even weeks, Decrees will start being published in the Official Gazette. The Mexican States also play an important role in the development of a SEZ.

Therefore, the purpose of this update is to inform which are the economic sectors that are being targeted by the Mexican government to invest in the SEZ, as well as the significant legal developments regarding the implementation of the Mexican SEZ at the state level.

To access our update, please download it from the following link: Update-SEZ-17082017

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