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Mexican Economic Newsletter

22 Nov , 2019  

Newsletter The Trading Room: Special Economic Zones and USMCA

(Download in PDF: Trading Room -221112019)

Special Economic Zones Officially End

On Tuesday, the Decree that repeals the Declarations of all Special Economic Zones (“ZEEs”) was published in the evening edition of the Official Gazette of the Federation.

 

According to the Decree, one of the main reasons for ending this project is the omission of appointing the Integral Administrator, the person in charge of building and managing a Zone, due to the lack of compliance with legal requirements on behalf of the interested applicants; in addition, it was noted that the SEZ could not operate due to lack of both private and public investments.

 

The business sector in Mexico said it regrets the government’s decision since they were not consulted before officially ending the SEZ.

 

According to the Decree, the current administration will focus on the Mayan Train, the Tehuantepec Isthmus Development Program and the Northern Border Free Trade Zone Program.

 

In theory, a Mexican newspaper will share our Jr. Partner’s (Emilio Arteaga) thoughts in the following days regarding this decision. We will share the piece in our social media once published.

Sources:

https://www.dof.gob.mx/nota_detalle.php?codigo=5579365&fecha=19/11/2019

https://www.elfinanciero.com.mx/economia/ip-lamenta-que-se-haya-apagado-el-foco-para-las-zonas-economicas-especial

USMCA Status in the US

 

News outlets report that the points of disagreement regarding USMCA are now less between the Trump administration and the Democrats.

 

The president of the House of Representatives of the US Congress, Nancy Pelosi, said last week that an agreement on possible changes to the text of USMCA was imminent. However, Pelosi said during this week that there may not be enough time to close this agreement this year as there are still many legislative steps, such as the preparation of the implementing legislation and its voting.

 

 

The US Congress has only a few days of sessions left (there is the possibility of extending them) to resolve these pending issues and to approve the treaty in December. News outlets continue to highlight that the Democrats are not yet satisfied with the enforcement mechanism on the labor provisions, so it is possible that the “updated” USMCA will be approved next year in the US.

 

Everything seems to indicate that there will be a modification to USMCA’s text, these changes will obviously have to be approved by Mexico, possibly through amendment protocols.

Sources:

https://www.milenio.com/negocios/t-mec-ratificarse-unidos-2019-nancy-pelosi

https://www.eleconomista.com.mx/empresas/Mexico-puede-sacar-provecho-de-la-revision-de-democratas-al-T-MEC-Jesus-Seade-20191110-0094.html

https://elfinanciero.com.mx/economia/aunque-haya-acuerdo-es-probable-que-t-mec-no-sea-votado-este-ano-nancy-pelosi

https://www.politico.com/news/2019/11/21/pelosi-doubt-usmca-passing-072459

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