October 30, 2020

Volume X, Number 304


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October 27, 2020

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Mexico Goes Live: Clarification to Guidance as Operations Restart

The transportation manufacturing industry (which includes automotive and aerospace), along with the mining and constructions industries, will be able to restart operations on June 1, provided that they comply with health and safety precautions to return to activities. There is consensus by industry members and their corresponding associations that operations may start as soon as health and safety measures are complied upon. However, the language of the executive order may be read in a different manner, allowing to restart operations only until June 1.

Companies may start preparing the implementation of health and safety measures as early as May 18 and those companies performing essential activities, such as the automotive and aerospace industries, will be able to start operations with no formality other than implementing health and safety measures consistent with the guidelines to be issued by the Ministry of Health, in collaboration with the Ministry of Economy, Ministry of Labor and Social Security Institute, once such measures are implemented. 

The Social Security Institute has already issued certain guidelines for the implementation of health and safety measures, which you may find here. We expect that the guidelines to be issued will not be more restrictive than those already in place at this time, but rather confirm these guidelines already in place. 

Companies will self-implement these health and safety measures in a bona fide effort to comply with the guidelines; however, the Mexican government will continue exercising its inspection authority and will be able to assess penalties, including closure of the premises, if companies do not implement such measures consistently with the guidelines.

Since the implementation of health and safety measures is based on a self-application bone fide effort, we strongly suggest implementing our risk management recommendations, which you may find here, emphasizing the notarized affidavit evidencing compliance of such measures. 

Finally, in addition to the measures mentioned above, automotive and auto parts companies exporting their products, such as maquiladoras, will need to apply the protocols required in their home countries. Thus, we suggest that these companies obtain evidence verifying that they comply with their home country protocols, such evidence being an affidavit, a legal opinion, etc. 

© 2020 Foley & Lardner LLPNational Law Review, Volume X, Number 136



About this Author

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...

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...
Andres Alvarez, Foley Lardner Law Firm, Dallas, Foreign Legal Consultant
Foreign Legal Consultant

Andres Alvarez is an experienced Foreign Legal Consultant in the corporate practice at Foley Gardere. He serves as a liaison on the interactions between the Dallas and Mexico City offices regarding all legal subject matters. He focuses on commercial matters, corporate and transactional law, as well as international trade and customs. Andres brings a deep understanding of decision-making processes and analysis of information and data, with experience in the technology, financial, consumer, hospitality and industrial sectors.

Andres previously...