CEO’s Executive Summary:

The election of Joe Biden as the 46th president of the United States will bring greater predictability to U.S.-Mexico relations. It will also open the door to new opportunities for collaboration on trade and the always prickly issues of immigration and security, even as it creates the likelihood of increased conflict over the implementation of the environmental and labor provisions of the United States-Mexico-Canada Agreement (USMCA) and in energy policy. This is particularly true given Mexico’s efforts to favor state enterprises over private producers, including U.S.-based energy companies, often at the expense of clean energy projects.

In Mexico, the Chamber of Deputies approved the federal government’s spending program for 2021 with almost no modifications. It is also on track to approve legislation that effectively eliminates outsourcing as a means for contracting labor. This proposal has enraged the private sector, but is strongly backed by President Andrés Manuel López Obrador (AMLO), who continues to enjoy high approval ratings in Mexico. At the same time, the Mexican Supreme Court and the Federal Electoral Tribunal handed down rulings that pleased the AMLO administration, and in the process raised questions about the independence of these two essential institutions.

Full Newsletter: Monarch News – November 20, 2020

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