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Mexican Companies Face New Challenges as Operations Resume

While essential companies continue to operate in the midst of the COVID-19 pandemic, a new set of challenges has appeared on the horizon. Those new challenges come from certain states that have enacted prohibitions to or additional restrictions on essential activities. These restrictions include, for example, reductions in the number of permitted employees, no more than 30% of its employees, etc.  So far, the states of Puebla, Nuevo Leon, and Chihuahua have issued such ordinances, though many other states are following on the same path.

The reality is that a state’s authority is limited to certain activities, not including the ability to forbid or restrict activities already acknowledged as essential by the federal government, nor the ability to further restrict those activities as informed in other prior alerts. This has been confirmed by a former Justice of the Supreme Court of Justice, where he clearly stated that only the federal government is authorized by the Federal Constitution to impose or lift such restrictions. Hence, an affected company may challenge such prohibitions or restrictions on essential activities imposed by any state, by seeking federal injunctive relief against such measures, or an award of damages. 

© 2023 Foley & Lardner LLPNational Law Review, Volume X, Number 164

About this Author

Daniel Aranda Corporate & Trial Attorney Foley & Lardner Mexico City

Daniel Aranda is a bilingual, bicultural corporate and trial lawyer serving clients in the U.S., Mexican and international energy law, pipeline, banking and finance sectors. Daniel is also a member of Foley's Energy Industry, and Government Procurement Practice in Mexico City.

Daniel represents foreign and domestic clients with all aspects of their international energy law needs, including:

  • Representation before the Mexican energy authorities (CRE, CNH, Ministry of Energy, Pemex and CFE)
  • Mergers and acquisitions
  • Project development and...
Roberto Arena Reyes Retana, Foley Lardner Law Firm, Mexico, Insurance and Energy Law Attorney

Roberto Arena is a trusted advisor for businesses in the energy, insurance, electricity, financial, and oil and gas sectors, including many public companies with an interest in international tax planning and inbound and outbound international business transactions. He often handles sophisticated interpretation of treaties to avoid double taxation, large-scale mergers and acquisitions, real estate litigation, corporate organizations and reorganizations, and multi-jurisdictional litigation-related matters.

Roberto is the founding partner of the...

Juan Carlos De Lucio Carrasco Litigation Attorney Foley & Lardner Mexico City

Since 2014, Juan Carlos has been a member of the Litigation Practice in Foley Arena's Mexico City office. Juan focuses his work on civil and commercial litigation practice, handling client's requirements before federal and local Mexican courts, with innovative litigation strategies. As a sample of some of the companies he represents, he works with companies within the technology, construction, maritime services and real estate industries.

Practice Areas

  • Business Litigation & Dispute Resolution 
  • Litigation