Members and Friends:
In our second Update on a variety of important events, activities, and trends, we should begin with the upcoming Mexican elections. On June 6, 500 deputies will be elected to the Chamber of Deputies. Also, governors will be elected in 15 states. Finally, 30 state legislatures (1,063 state deputies) and 1,926 local governments in 30 states will be elected. Given that President Lopez Obrador has been in office about three of his six-year “sexenio,” it will be a very important election to indicate the country’s support for his Morena party, with 92 million registered voters eligible to define the balance of power.
The Mexico Institute has initiated a series of webinars and reports on the elements of the election and the electoral process in Mexico. Two weeks ago they had a session on Mexico's Mid-Term Elections: What's at Stake and What to Expect. Alejandro Moreno of ITAM/El Financiero provided this brief but focused presentation on the upcoming event. The Mexico Institute also has developed a Guide to the elections. There are four sections: To Get You Started, The Process, Political Parties, and Electoral Maps – each with many details and worth reviewing.
Our Chamber will have people on the ground at the elections and we will be producing a report of the results afterward.
On May 12, Ambassador Kathy Tai, the USTR, gave Testimony To The Senate Finance Committee on the President’s Trade Agenda. It reinforced the testimony she gave at the occasion of her nomination hearings a short while ago. In one comment on the “rapid response mechanism” (in the USMCA), she said it “will allow us to address long-standing labor issues in Mexico. Today I am proud to announce the inaugural use of this mechanism in our request that Mexico review whether workers at a General Motors facility in Silao, located in the State of Guanajuato, are being denied the right of free association and collective bargaining.” A copy of the USTR USMCA Review Request can be found here. There will likely be many other areas of issue as the USMCA moves forward.
USTR also announced that Ambassador Tai will host the inaugural Free Trade Commission (FTC) of the United States-Mexico-Canada Agreement (USMCA) on May 17-18, 2021. Mexican Secretary of Economy Tatiana Clouthier and Canada Minister of Small Business, Export Promotion, and International Trade Mary Ng will attend the virtual meeting. The FTC is the first step toward realizing the full potential of the Agreement and building an inclusive trade policy for North America that fosters broad-based and equitable growth, spurs innovation, protects our shared environment, and helps people from all walks of life.
On May 7, Vice President Kamala Harris met virtually with Mexican President López Obrador ahead of her long-anticipated trip to Mexico and Guatemala on June 7-8 as President Biden’s migration czar. Although the conversation was amicable, prior to the meeting Lopez Obrador announced that his government sent a diplomatic protest note to the US government “asking for an explanation” of the US aid that goes to Mexicanos Contra la Corrupcion, an anti-corruption group.
On May 12, the law firm of Thompson Hine hosted a webinar on Navigating a New North America Trade, Supply Chain & Energy Issues in a Post-Pandemic and USMCA World led by our good colleague Dan Urzco of the firm. The materials presented were in three sections:
USMCA’s Challenges and Opportunities
New Year, New NAFTA – Evaluating USMCA’s Impact on Current Operations and Due Diligence Procedures
North American Competitiveness in the World
Each section is worthy of your review as they contain important information as we move toward the second year of the USMCA.
Last for this Update is the Fitch Monthly Global Outlook Presentation – April 2021. Again, the format for the monthly outlook consists of charts showing trends of major indices – economic and other such as those relating to the COVID-19 pandemic. Of interest is that global exports are picking up as well as global commercial flights.
Stay safe.