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Mexcentrix – Shelter Services Mexico Outsourcing

Jesus Aguirre

01Sep

Sectores laborales en los que se divide la economía de México

septiembre 1, 2020 Jesus Aguirre NEWS

De acuerdo con la Encuesta Nacional de Ocupación y Empleo (ENEO) las características, sobre las tendencias y características de las personas ocupadas en el país. Esta se dividió en 11 sectores que representan la mayor actividad económica.

Entre estos se encuentra la agropecuaria, el comercio , construcción, educación y salud, extractiva, gobierno, servicios profesionales, transformación, transporte y turismo. Pero son cuatro de estas las principales que juntas suman el 58.6 por ciento de la población ocupada.

El comercio cuenta con 9.7 millones de personas ocupadas, seguido de la transformación con 8.8 millones y por último la agricultura y los servicios personales con 5.9 millones.

¿Qué personas laboran en estos segmentos?

De acuerdo con la Encuesta Nacional de Ocupación y Empleo (ENEO) 7 de cada 10 ocupados en el país son trabajadores subordinados y remunerados, con excepción del sector Gobierno, en el que todos son trabajadores que reciben pago por su trabajo.

Además el 18.7 por ciento de los trabajadores en el país pertenecen al comercio, de estos la más del 50 por ciento cuentan co escolaridad hasta el nivel secundario y el 40 por ciento tienen entre 16 y 34 años de edad.

Es más, los jóvenes son los más empleados en diferentes categorías, pues el estudio arroja que las actividades de turismo, transformación y construcción emplean mayor porcentaje de jóvenes de entre 16 y 24 años de edad.

Por otra parte los sectores de Gobierno, Educación y Salud, y extractivas son los que menos controlan jóvenes, al igual que el la agricultura que mayormente contrata personas mayores de 45 años.

O el sector se Servicios Profesionales que además que contrata trabajadores mayores de 35 años, la mayoría de sus ocupados también cuentan con escolaridad superior.

Sin embargo, es en la Agricultura en donde la mayoría de los trabajadores lo hacen por cuenta propia, con el 41.5 por ciento.

De acuerdo con datos de la Tasa de Ocupación Parcial y Desocupación (TOPD1) del 2019 al menos 10 de cada 100 mexicanos mayores de 15 años se encuentran desempleados o en algún trabajo parcial. Además, señala que 7 de cada 100 trabajadores se encuentran buscando un empleo adicional.

Cada vez más personas se convierten en sus jefes:

Las Pymes están en crecimiento y esto no debe sorprendernos, pues 3 de cada 4 personas ocupadas en nuestro país laboran en una de estas y cada vez surgen nuevas.

Por lo que es importante que se adapten a las necesidades de los consumidores y sepan crear planes óptimos para superar a la competencía.

·La mercadotecnia es esencial cuando se busca potenciar un negocio y mantenerlo en el mercado, pues te permite detectar las necesidades del consumidor, en que sectores de mercado te debes enfocar y como analizar la competencia.

·Comunicación va de la mano con la mercadotecnia, pues esta te permitirá llegar a los sectores necesarios para realizar las mejores estrategias de difusión definiendo los canales adecuados, así como el lenguaje y la publicidad para llamar la atención de tus consumidores.

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01Sep

Cancelan impuesto digital en este país porque genera poco dinero, ¿qué implica para México?

septiembre 1, 2020 Jesus Aguirre NEWS

El tema del impuesto digital ha sido particularmente controversial en el último par de años. En todo el mundo, varios gobiernos se han decidido a poner sus propias tasas impositivas a las compañías de tecnología, la mayoría originarias de Estados Unidos (EEUU). A pesar de esta tendencia, hay muchos gobiernos que no solo no han legislado al respecto. Incluso empiezan a surgir naciones donde parece que se dará vuelta atrás a esta propuesta en el corto plazo.

De acuerdo con Reuters, el gobierno de Reino Unido estaría dispuesto a eliminar su propia versión del impuesto digital. Este “Facebook Tax”, como se le conoce en el país, generaría unos 654 millones de dólares (mdd) adicionales para las finanzas públicas año con año. Sin embargo, el ministro de finanzas local Rishi Sunak parece estar convencido que no son ni de cerca suficientes recursos. Por lo tanto, podría estar planeando en eliminarlo definitivamente.

La información fue dada a conocer por el periódico Mail on Sunday. El impuesto digital en el Reino Unido entró en vigor el abril pasado. Pero el ministro de finanzas británico habría dicho que esta tasa podría hacer más difícil establecer una relación comercial con EEUU. Un tema que es crucial en miras de la economía local post-Brexit. Sin embargo, el funcionario también señaló que el país regresaría la tasa una vez que se establezca un modelo global unificado.

Impuesto digital de Reino Unido y lo que representa para México

Prácticamente en todo el mundo se han empezado a poner tasas a las actividades de todas las marcas con actividad en la web. En Francia las Big Tech ya ceden el tres por ciento de sus ingresos a las autoridades de gobierno. La Unión Europea desde 2018 que trabaja en un solo impuesto para toda la región. Incluso en sectores como la publicidad online se han empezado a pasar propuestas para EEUU. Y por supuesto, ya existe una propuesta así para la República.

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01Sep

Tres tendencias tecnológicas que van a cambiar el entorno de las finanzas en el futuro

septiembre 1, 2020 Jesus Aguirre NEWS

No hay duda alguna que la pandemia ha provocado una aceleración tecnológica en múltiples mercados. En retail, muchas empresas de renombre (Pandora, Nike, Prada, Kipling) han tenido que sumarse al ecommerce solo para seguir vendiendo. Escuelas e instituciones educativas se están enfrentando a la realidad del regreso a clases a la distancia. Incluso los deportes están en un periodo de adaptación para continuar sus actividades. Y esto aplica para las finanzas.

Es incluso discutible que este sector es el que más cambios ha visto a raíz de la pandemia. De acuerdo con Barrons, las dinámicas de los mercados no serán las mismas luego de la crisis. En datos de McKinsey, las finanzas personales también presentarán un comportamiento muy distinto en el largo plazo. Algo que impactará en las tasas de ahorro, consumo e inversión, en datos de Business Insider. Pero en datos de VeriTran, le abrió paso a tres innovaciones clave:

Finanzas de la banca tradicional han evolucionado

Si bien hay una serie de cambios cruciales a nivel consumidor, también las instituciones han tenido que evolucionar por la pandemia. Para proporcionar a la gente servicio a distancia, se tuvieron que añadir o reforzar algunas plataformas digitales y en línea. Y en el proceso, las compañías del sector finanzas se dieron cuenta que muchos de sus sistemas no estaban a la par de las expectativas de los usuarios. Así pues, fue necesaria una actualización agresiva.

Billeteras digitales: El futuro de las transacciones

Sería ingenuo decir que en el mundo pre-pandemia de las finanzas no existían estas wallets. Sin embargo, sus ventajas se volvieron evidentes gracias a la crisis económicas. No solo se mostraron como una alternativa práctica al uso directo de tarjetas o efectivo en transacciones online. Además presentan ventajas de seguridad significativas frente a posibilidades como el robo o la suplantación de identidad. Y son más notables sus aplicaciones con smartphones.

Inteligencia Artificial para el mundo de las finanzas

Otra innovación notable es el uso de algoritmos y sistemas automáticos para mejorar cómo es que funcionan las instituciones del sector finanzas. Se debe de reconocer que la pandemia no es la única responsable del crecimiento de la Inteligencia Artificial (IA) en este mercado. Esta tecnología de hecho se lleva implementando con gran eficiencia en otras industrias desde hace varios años. Así que su transición a este segmento era más cuestión de cuándo sería.

Fuente: Merca2.0.com

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27Ago

Mexico: Surprising Land Of Opportunity

agosto 27, 2020 Jesus Aguirre NEWS

The reality, many analysts say, is that Mexico offers investors and businesses a land of opportunity that rivals any other emerging market.

“What’s surprising — is how surprising it is that as an economic power, Mexico is under the radar for so many businesses and investors,” says Jose Manuel Ramirez of tax audit firm KPMG who co-wrote a recent study on investing in Mexico.

“For many years, Mexico has been doing all it can to attract investors and has reached a high level of sophistication,” Ramirez says. “There’s really a lot of great possibilities there.”

To make itself attractive to investors, Mexico has transformed from a small economy to an open and more diverse one. In the last 20 years, the Mexican government has made improvements to its infrastructure and fostered competition in sectors such as transportation, energy and telecommunications. (More:How to Get a Piece of Mexican Stocks)

As a result, Mexico has grown to be the 13th largest economy in the world — $2.4 trillion — and the 11th in purchasing power, according to the World Bank. The Mexican stock exchange — the Bolsa Mexicana de Valores — is valued at some $451 billion, second to only Brazil in Latin America and fifth in all of the Americas.

One of the biggest changes for Mexico has been its trade policies, says Antonio Garza, a former U.S. ambassador to Mexico and currently chairman of Vianovo Ventures, a business development firm.

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27Ago

Why It Can Be Easier To Start A Business In Mexico

agosto 27, 2020 Jesus Aguirre NEWS

Like most businesses, the idea for this one came from what the founder (in this example, me) experienced when trying to buy a product or service; in this case moving our family’s household goods from the US to Mexico.  When my wife handed me the estimates from the two established moving companies in town, I was shocked—not only by the price (which I felt was outrageous) but even more by all the importation rules these moving companies wrote that we had to follow along with dire warnings that if we didn’t, it would be our fault and we would have to suffer the dire consequences.

Given that this looked like something that needed fixing and that I had experience with business in general, I decided to investigate further and if everything lined up, maybe even start a company here in Mexico.

I was aware that I had no knowledge whatsoever starting or running a company outside the US and that this lack of experience added a dimension of risk that wouldn’t exist in the US, but I was also aware and hopeful in some theoretical sense that starting a business outside the US also added another dimension of potential reward.  The only thing I didn’t know was if the reality would contain more risk or more reward, and in what proportion. Now I can share with you what I found.

 

sismos-ciudad-de-mexico
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10Ago

SAT cobra un retroactivo de derechos a maquilas

agosto 10, 2020 Jesus Aguirre NEWS

Colegio de Contadores considera que la medida es meramente recaudatoria e ilegal; benéfico que Prodecon fije su postura, opina

El Servicio de Administración Tributaria (SAT) está pidiendo el pago retroactivo de derechos a maquiladoras para renovar su autorización en el Esquema Integral de Certificación de Empresas en comercio exterior que les permite la devolución del IVA en menos de 20 días y la inscripción inmediata en el padrón de importadores y exportadores.

La Administración General de Auditoría de Comercio Exterior, a través de las Administración Central de Certificación y Asuntos Internacionales de Auditoría de Comercio Exterior, dio a conocer las cuotas de los últimos seis años.

Antes, las empresas que están en el programa Industria Maquiladora y Manufacturera de Exportación (IMMEX) no pagaban derechos por renovar su certificación y ahora el SAT quiere cobrarles de manera retroactiva.

Las nuevas cuotas van desde los 24 mil 506 pesos correspondiente a 2015 hasta 29 mil 747 pesos para 2020, para las certificaciones en IVA, del Impuesto Especial Sobre Producción y Servicios (IEPS), para la comercializadora e importadora, los operadores económicos autorizados y el socio comercial certificado.

De no pagar, las empresas perderán su registro y beneficios de certificación que lograron para no ser afectadas con la reforma fiscal de 2014.

Para el integrante de la Comisión Técnica de Comercio Exterior del Colegio de Contadores Públicos de México, Juan Antonio Castro Chávez, esta medida es sólo recaudatoria e ilegal.

“Es una lectura desatinada que está haciendo la autoridad porque no tiene sustento en la ley”, afirmó.

En entrevista con EL UNIVERSAL, consideró que es un caso que amerita la intervención del ombudsman fiscal.

“Sería deseable que en estos casos se llegue a incorporar a la Prodecon como un organismo que analizara el tema de manera masiva”, estimó.

Refirió que el cobro de derechos se manejaba desde 2011 con algunas firmas, por la inscripción al registro de empresas certificadas.

Con el tiempo se incorporaron modalidades nuevas, la más común fue la certificación del IVA y el IEPS de manera forzosa a las Inmmex o maquiladoras.

Pero ahora se quiere cobrar derechos a las maquiladoras de manera retroactiva, lo que no tiene sustento, señaló.

Pagar y continuar con la autorización será la opción más razonable, porque de lo contrario, cuando las empresas intenten renovar la autorización, el SAT va a cuestionar que no le han pagado derechos, consideró.

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25Jun

Nearshore vs Offshore

junio 25, 2020 Jesus Aguirre Blog

Nearshore vs Offshore

One of the main objectives for industrial companies is expanding their operations and being able to be more cost-effective. Based on the company’s supply chain needs, the company can decide between nearshore vs offshore.

Nearshore vs Offshore: Choosing what's best for your company

What is Nearshore?

It means transferring your operations across national borders to business operations in another country that is in proximity, with a relatively small-time- zone and cultural differences. This in order to be more cost-effective and save time.

Whats is Offshore?

It means transferring your business operations overseas. The main objective is also cost reduction, by looking for qualified employees with low labor costs.

The Main advantages of nearshoring are:

  • Geographical proximity and share time zones facilitate communication.
  • Fewer travel expenses and reduction of traveling time.
  • Lower shipping costs compared to overseas operations.
  • Cultural integration is more fluid.

Both nearhsoring and offshoring can help a company to reach their objectives and be successful, the decision of nearshore vs offshore will depend on the company’s needs.

One of the most effective ways to save money is the combination of nearshore or offshore with outsourcing.

Outsourcing allows your company to focus primarily on production, quality control among others while letting the experts take care of the rest. With offshore or nearshore outsourcing you do not have to worry about not knowing the culture, laws, and regulations of the country where you will transfer your operations, as the outsourcing company will take care of payments to employees, utilities, suppliers, taxes, among others.

Nearshore and Offshore in Mexico

Nowadays Mexico is one of the most attractive countries for expansion or relocation of operations, due to its several advantages such as:

o Highly skilled and competitive labor costs

o High-quality infrastructure

o Free trade agreements

o Export incentive programs

o Low energy costs

Are you thinking of nearshoring or offshoring in Mexico?

Mexcentrix can help you. We assure you a successful and timely start of operations while providing strategic guidance in order to help your company reach its goals.

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09Jun

Stumbling angel? Mexico risks losing investment grade credit rating

junio 9, 2020 Jesus Aguirre NEWS

MEXICO CITY (Reuters) – Mexico is facing its deepest recession in decades and prominent investors believe it could soon follow state oil company Pemex in seeing its credit rating relegated to “junk” territory as the COVID-19 pandemic rages on.

Losing the investment-grade rating that Latin America’s second-largest economy has held for almost two decades would be a bitter blow for leftist President Andres Manuel Lopez Obrador.

His fiscally conservative approach to finance and debt is guided by memories of Mexico’s humiliating payments crises and bailouts in the 1980s and 1990s.

“Losing the investment grade rating is a real risk and now something investors increasingly think about,” said Luis Gonzali, a portfolio manager at asset manager Franklin Templeton.

“It could be the event that defines the presidency of Lopez Obrador and leads to investors fleeing Mexico fast, and at a large scale.”

Analysts at JP Morgan said Mexico’s big presence in major investment grade bond indices would exacerbate the scale of forced selling if it becomes a “fallen angel,” a company or country whose ratings have been cut to below investment-grade.

All three ratings agencies have already downgraded Mexico this year.

Fitch Ratings has its sovereign bonds at BBB-, with a stable outlook; Moody’s Investors Services has them at Baa1 and S&P Global Ratings at BBB, both with negative outlooks, signaling further downgrades.

Two would have to rate Mexico speculative grade, or junk, for it to become official.

JP Morgan analysts wrote in a research note that an estimated $44.3 billion of Mexican bonds are at risk of forced selling in the event of a cut to junk.

About $4.5 billion of that total is corporate debt, they said, noting that a sovereign downgrade makes it harder for companies to hold an investment grade rating.

Gonzali estimated the junk label could initially push up borrowing costs for the Mexican government by as much as 300 basis points before settling at around 100 basis points higher than now.

FRUGAL WAYS

Mexico was long a darling of investors as it reduced the role of the state and appointed U.S-trained technocrats attuned to Wall Street’s preferences to reduce the state’s role in the economy.

But its star was fading even before Lopez Obrador’s 2018 election win.

Despite his frugal ways since taking office, policy decisions including cancellations of billions of dollars of infrastructure projects and the renegotiation of energy contracts have further eroded trust.

Concerns are also growing within the finance ministry, where one official said further downgrades were likely with a cut to junk possible as early as next year.

“The outlook for Mexico’s sovereign debt is very negative,” the official said, speaking on condition of anonymity. “The problem is that there’s now a confidence crisis in the politics of the government.”

JP Morgan’s analysts agreed that a downgrade to speculative grade could happen late next year or in early 2022.

They cited low growth and the state’s crowding out of investors in the energy sector among factors undermining Mexico’s coveted investment grade. They also cited slow progress in diversifying the tax base, and a weak response to the coronavirus pandemic.

Investors already rate Mexican sovereign bonds similar to junk, with spreads to U.S. Treasuries climbing.

The spread has moved “into the pricing range of a security on the cusp of downgrade to high yield,” said Andrew Stanners, an investment director at asset manager Aberdeen Standard.

Carlos Serrano, an economist at BBVA, the country’s largest bank, noted the market priced Mexico’s last sovereign bond issue at a level similar to that of junk-rated Paraguay.

Mexico issued $2.5 billion in April at a yield to maturity of 5%, Serrano said, while Paraguay issued $2 billion the same month, and with a similar maturity, at a yield to maturity of 4.95%.

Not all feel a downgrade to junk is inevitable, however.

“The decision not to be fiscally expansive could pay off if we get a very quick recovery,” said Stanners, referring to the lack of government spending to offset the pandemic’s economic impact.

“It’ll mean that the fiscal position has not been eroded as harshly as other countries and could prevent rating downgrades to high yield.”

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28May

CFE chief vows to end ‘simulation and fraud’ by renewable energy firms

mayo 28, 2020 Jesus Aguirre NEWS

The director of the Federal Electricity Commission (CFE) has vowed to put an end to “simulation and fraud” committed by renewable energy firms at the expense of the state-owned company.

In an interview with the newspaper La Jornada, Manuel Bartlett said the CFE has filed complaints against renewable energy firms with the Energy Regulatory Commission (CRE), an ostensibly autonomous federal body.

He said that renewable firms have an unfair advantage because they don’t pay the CFE for using its transmission lines to transport the energy they generate nor do they pay the state-owned company for the backup power they use.

Not paying for transmission or backup power allows the private firms to save billions of pesos, Bartlett said.

The CFE chief also charged that renewable firms have acted fraudulently by passing off other private companies as their business partners rather than their customers.

Bartlett said that large companies like corporate conglomerate Grupo Salinas, convenience store chain OXXO, big-box store Walmart, cinema chain Cinépolis, manufacturer Kimberly Clark and others pay very low electricity rates because they are passed off as partners of firms such as Iberdrola, Enel Energía and American Light and Power.

Their “simulated” partnerships allow the client firms to receive electricity without paying for transmission costs, he said.

Bartlett told La Jornada that he hopes that the CRE resolves the issues soon and corrects “illegal, irrational and unfair” decisions it took in favor of private firms during the six-year term of the government led by former president Enrique Peña Nieto.

The decisions taken by the CRE during the term of the previous government allowed private, mainly foreign companies to make huge profits at the expense of the CFE, he said.

Bartlett asserted that the federal government is “not against clean energy” and that “what’s established by the [2014] energy reform will be respected” but stressed that “what we’re not going to allow is for this large social vocation company, the CFE, to continue to be used to bolster private companies.”

“That would … go against the national interest,” he said.

“The large companies of Mexico, those with the most capital, are cheating in order to pay a lot less for the electricity their businesses consume while at the CFE we’re struggling, counting every centavo so that the impoverished people of Mexico pay as little as possible,” Bartlett said.

“It’s not a [fair] electricity market, it’s theft, heaven on earth for the [renewable energy] investors that have illegally seized [the business of] large consumers,” he said.

Bartlett accused Peña Nieto of attempting to kill off the CFE and leave the energy market in the hands of private foreign companies.

Both President López Obrador and the CFE chief, an 84-year-old former federal cabinet minister and ex-governor of Puebla, say they are committed to “rescuing” the state-owned firm while keeping power costs down.

Bartlett charged that private companies were allowed to establish wind and solar projects “wherever they wanted” and without proper planning. As a result, their energy generation capacity is frequently interrupted, he said.

“Every time that a cloud goes by or the wind doesn’t blow, they don’t generate energy,” Bartlett said, explaining that at such times renewable companies tap into CFE-generated base load power to maintain supply.

“It’s called backup and they don’t pay for it either. That’s why the energy they generate is cheaper; it proves the falseness of [the claim] they’ve disseminated: that our power is more expensive and that our infrastructure is obsolete,” he said.

“Now that we want to put an end to this plunder and fraud … they’re accusing us of being inefficient and of wanting to put an end to clean energy. … Whoever comes to do business here has to pay for transmission costs, distribution costs and backup. We have no reason to continue subsidizing them,” Bartlett said.

He made similar remarks in an interview with the news agency Reuters on Friday, asking: “Do you think it’s fair for the CFE to subsidize these companies that don’t produce power all day?”

In response, the Confederation of Industrial Chambers (Concamin) denied that private energy companies are getting a free ride.

“The private companies that operate in the electricity market do pay the CFE to use the transmission lines to transport the energy they produce to their clients. The payment is made monthly according to the regulated rate set by the Energy Regulatory Commission,” Concamin said in a statement.

“Therefore, Bartlett is lying when he suggests that private companies are not paying to use the CFE transmission lines,” the business group said.

With regard to his subsidy claim, Concamin asserted that “renewable energy is not subsidized in Mexico.”

“Mr. Bartlett should know” that plants that produce base load power receive an additional payment that “recognizes their capacity to produce all day” whereas renewable energy plants are only paid for the power they generate, the business group said.

Concamin also highlighted that it’s not just renewable energy companies that generate power intermittently, pointing out that the CFE has hydroelectric plants that depend on rain as much as wind and solar-powered plants depend on gust, gales and sunshine.

“Will Mr. Bartlett apply the backup payment to his intermittent hydroelectric plants? We don’t think so,” it said.

Will privately owned-plants that produce base load power be allowed to collect the backup power payment? asked Concamin before again responding “We don’t think so.”

Tensions between the federal government and the renewable energy sector have intensified this month after the National Energy Control Center published an agreement in late April that suspended national grid trials for new clean energy projects.

The federal Energy Ministry subsequently published a new energy policy in mid-May that imposes restrictive measures for the renewable energy sector that could effectively prevent its expansion in Mexico and consolidate control of electrical power in the CFE.

The government also has its eyes on renegotiating contracts with three companies that operate wind farms in Oaxaca, according to a report by the newspaper El Universal.

Anonymous energy sector sources told El Universal that the government wants to set new conditions for the purchase of energy by the CFE from the Oaxaca wind projects operated by Spain’s Iberdrola, Acciona and Grupo Cobra.

The companies signed contracts with the government for 20 years in 2010, meaning that they are only at the halfway point of their lifespan. In those 10 years, the CFE has paid the companies just over 19.7 billion pesos (US $872.5 million at today’s exchange rate).

Asked about its knowledge of the plan to modify the contracts, the Mexican Association of Wind Energy (AMDEE) acknowledged that “it’s something that could happen.”

However, the association said that if the CFE were to breach its obligations under the contracts, the companies could sue the government for lost income.

The government cannot unilaterally modify or terminate contracts, the AMDEE said, charging that the Finance Ministry might have to involve itself in the matter in order for a resolution to be reached.

The association noted that federal authorities have said that will not seek to alter previously-signed contracts but added that they have not always kept their word.

The CFE last year filed requests for arbitration in international courts as part of efforts to annul clauses in seven gas pipeline contracts before reaching an agreement with three private companies that López Obrador said would save Mexico US $4.5 billion.

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15May

Mexico green lights auto industry restart, heeding U.S. calls

mayo 15, 2020 Jesus Aguirre NEWS

MEXICO CITY (Reuters) – Mexico will begin opening some automotive factories from May 18 under a plan unveiled on Wednesday that loosens coronavirus restrictions and paves the way for U.S. car giants to ramp up output dependent on parts made south of the border.

In a presentation, the government said as of Monday, mining, construction and manufacturing of transport equipment will be considered essential activities and that companies must implement strict protocols to protect their workers.

“We now have the light which tells us we’re going to get out of the tunnel,” President Andres Manuel Lopez Obrador said alongside top officials at a news conference in which the government set out its plans.

Lopez Obrador stressed that adoption of the measures would be voluntary. Some states may move faster than others during the reboot of the auto sector, though industry leaders are eager for supply chains to reconnect as seamlessly as possible.

A government memo dated Wednesday, based on media reports, showed that state governments diverged considerably in their guidance on how quickly they would restart activities.

The United States and auto companies have pressed Mexico to reopen factories serving the U.S. market, despite the intensifying challenge posed by the pandemic. Mexico on Tuesday registered 353 coronavirus deaths, its most lethal day yet.

Mexico sends 80% of its exports to the United States and became its biggest trade partner last year, with bilateral commerce worth over $600 billion. Mexican auto output all but evaporated in April, plunging by 99%.

From Monday, Mexico will also allow municipalities without reported coronavirus cases which lie adjacent to others with no infections to begin lifting coronavirus curbs.

The government said some 269 municipalities, or more than 10% of the national total, currently fall into that category.

Other more general economic and social activities will restart step by step under a “traffic light” system to determine which areas of the country are at lower risk of outbreaks of infection, Economy Minister Graciela Marquez said.

The reopening of North America’s automotive industry is likely to be gradual, said Phil Annese, a senior director at Pilot Freight Services, which moves car parts for Ford (F.N), GM (GM.N) and FCA (FCHA.MI) from Mexico to U.S. factories.

The assembly plants “are going to start out at a 25% to 40% production rate, they’re going to go as slow as they can to not create snags in the supply chain,” Annese said.

“If they get that supply chain stuck, that’s more trouble than anything they can have. Starting and stopping lines, that’s where the cost comes in,” he added.

Mexico has been studying other countries emerging from lockdowns and believes highly mechanized factories offer better conditions to control the risk of contagion, officials say.

Lopez Obrador is trying to strike a balance between limiting economic damage and saving lives, but some lawmakers worry Mexico may be moving too fast.

They include Benjamin Carrera, a state-level lawmaker from Lopez Obrador’s ruling MORENA party in Chihuahua, home to the northern industrial hub of Ciudad Juarez.

He has urged authorities not to allow manufacturers to open before June 1 in Ciudad Juarez, a border city where many maquiladoras, including auto parts makers, are located and 146 people have died of the coronavirus, including factory workers.

“Juarez couldn’t survive without the factories. But right now, the life of a worker is much more important than a job,” he said. “A job can be recovered. People’s lives can no longer be.”

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