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Mexico an attractive country for investment

Opportunity for Mexico, despite everything: Santamarina and Steta

Written by Santamarina + Steta en . Published in Updates.

  • Good luck. Mexico enjoys relative peace amidst war and trade conflicts.
  • Opportunity to build the Mexico platform as a strategic piece for Europe, Asia and Latin America.

Mexico City, May 31, 2022. Jorge León Orantes, expert in global and strategic relations of the law firm Santamarina and Steta, noted that today geopolitical conditions favor Mexico and will promote recovery, despite the difficulties the world is going through and the decisions in our country.

“We are truly lucky. It is not nice to say it, but Russia’s invasion of Ukraine, the threats of new outbreaks of the pandemic, the China-US trade war, market closures in China and the weakening of economies and democracies in some Latin American countries are working in our favour,” said.

The specialist highlighted that Mexico's geographic, demographic and economic position allows it to continue to emerge as a platform for the development of the North American region, while at the same time it can function as an industrial and trade base for access to the US market, as well as for trade with various countries in Europe, Asia and the rest of Latin America. “Mexico is not at odds with any country and has a network of free trade agreements that give it the structure to become a trigger for opportunities in times of crisis and conflict,” destacó.

Jorge León Orantes recalled that our country currently has 12 Free Trade Agreements signed with 46 countries, 32 Agreements for the promotion and reciprocal protection of investments with 33 countries. “With this we have a great opportunity to regain leadership through peace,” clarified.

To this end, the jurist explained that the rule of law must be consolidated in Mexico, under a new vision that avoids unbridled capitalism and promotes regulations in which productive society respects the environment, human rights and community rights.

“The community of global investors who can consolidate the Mexico platform are attentive to receive signals of certainty from the Mexican State. The way in which the uncertainty regarding the energy reform initiative was resolved in Congress was very positive, because it distanced us from the ghosts of government monopolies. Now Mexico needs to fully adopt new comprehensive concepts of environmental, social and corporate governance surveillance, especially in value and supply chains, with the participation of civil society and the productive society,” concluded. 

Mexico City Office

Tel. +52 55 5279 5400

Monterrey Office

Tel. +52 81 8133 6000

Queretaro Office

Tel. +52 442 290 0290

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The importance of the bill of lading in foreign trade

Written by Santamarina + Steta en . Published in Events and Webinars.

The CanCham Mexico legal and tax committee invites you to participate in this virtual session in which general aspects of the Carta Porte, its use and relevance for foreign trade operations will be addressed.

Speakers


Moderator

  • Guillermo Villaseñor, President of the CanCham Tax Legal Committee and Partner at Sanchez Devanny

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    Mexican companies have to transform themselves to survive in a market that has suddenly changed: Santamarina and Steta

    Written by Santamarina + Steta en . Published in Updates.

    • It is time to reinvent ourselves. It is about joining forces in a market that has changed in several sectors.
    • They will be strategies to adapt to new market habits.

    CDMX. June 2, 2022. Guillermo Moreno, an expert in Mergers and Acquisitions at the law firm Santamarina y Steta, pointed out that we are clearly witnessing a changing market in which companies cannot remain static.“If they want to survive, or get ahead, they have to be open-minded to structural changes, which means reinventing themselves. This is a phenomenon that is becoming more and more widespread. We will see concentrations or mergers of companies, the sale of some business lines and other diverse strategies of mergers or asset purchases.”, Dijo.

    The specialist pointed out that the companies with the most opportunities are those that are already reviewing their lines of business, their resources, market share and what their best options are, sometimes including in the face of their competitors. Sometimes this means selling business lines, in other cases buying them, or bringing in new partners, depending on the opportunities that are emerging in the market. “In particular, we have seen movement in the mining sector, the gaming and lottery sector and, of course, the automotive sector. But accelerated movements are beginning in other sectors.”, he stressed.

    “We are already seeing the deployment of various strategies in a scenario of change. The effects of the pandemic have combined with the explosion of online applications in other areas such as education, gyms, tourism, restaurants, the entertainment industry and mass events. To this we must add those industries that will develop more sophisticated and aggressive strategies to resolve market issues, competition, outsourcing, investments, respect for the environment and social environment and even the reputation of their brands,” explained

    Mexico City Office

    Tel. +52 55 5279 5400

    Monterrey Office

    Tel. +52 81 8133 6000

    Queretaro Office

    Tel. +52 442 290 0290

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    Flight delays worsen at the capital's airport

    Written by Santamarina + Steta en . Published in Updates.

    In April, Lufthansa, Air France and British Airways had the highest proportion of delayed operations, according to the consultancy Cirium.

    The redesign of airspace, saturation and neglect experienced by Mexico City International Airport (AICM) are causing more and more delays for airlines.

    In April, during the Easter holidays, airlines reported delays of between 30 and 44 minutes for takeoff, according to figures from the consultancy Cirium.

    The firm's report shows that Lufthansa was the airline that suffered the longest delays in its operations, as 24 percent of them suffered delays of between 30 and 44 minutes.

    They were followed by Air France, British Airways, Avianca and KLM, with 16, 15, 7.6 and 7 percent of their departures with delays of between 30 and 44 minutes each.

    Among Mexican airlines, Cirium only has information on Aeromexico, and in its case, 6 percent of the company's operations had delays of more than 30 minutes.

    According to the College of Aviator Pilots of Mexico, the redesign of the airspace in the Metropolitan Zone contributes to greater delays in operations, since now the planes are separated further and spend more time in the air before landing at the AICM.

    Juan Carlos Machorro, an expert in Aeronautics and Airport Infrastructure at the Santamarina y Steta firm, agreed that the delays are a consequence of the redesign of the airspace so that AIFA could come into operation.

    "The simultaneous operation of AICM and AIFA is highly questionable in technical, logistical and operational terms," ​​he told EL UNIVERSAL.

    "We need to check whether the new routes are well designed, well laid out, whether they are the most efficient and whether they actually allow air traffic to be faster and more expeditious," he said.

    For Machorro, it is striking that this situation of delays occurs despite the fact that the passenger flow at AICM in 2021 was 28% lower than the levels of 2019, when the airport was also saturated.

    "How is it possible that before the pandemic, when AICM was saturated and received 50 million passengers a year, these things did not happen?" he asked.

    “If we compare the operation of any of the terminals operated by the country's private airport groups, such as OMA, GAP or ASUR, we do not find any airport where the experience is as tortuous as going through AICM.”

    “It is not possible for AICM to be operating under these conditions. There are delays in air operations and this is also reflected in ground operations,” the expert said.

    The causes of delays at AICM are varied, but in addition to the typical congestion during the holiday season, there is also bad weather or a lack of crew on the airlines.

    Regarding the proposal to increase operations at AIFA to ease congestion at AICM, only the Mexican airlines—Aeroméxico, Volaris and Viva Aerobús—agreed to increase their number of operations at Santa Lucía and even at the Toluca terminal.

    However, until now no foreign airline, with the exception of Venezuela's Conviasa, has shown interest in operating in the AIFA.

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    Source: El Universal

    Reviving AICM

    Reviving AICM: a dead end. The data: Santamarina and Steta

    Written by Santamarina + Steta en . Published in Updates.

    • Checkmate. There are no resources to get it out of disrepair. Much less to update it..
    • The incorporation of AIFA and AIT, enabled to the maximum, cover half of AICM traffic before the pandemic.

    CDMX. June 8, 2022. Juan Carlos Machorro, partner in charge of the transactional area and expert in aeronautical and airport law of the law firm Santamarina and Steta, pointed out that the current Mexico City International Airport (AICM), which had its days numbered due to its deterioration, is on the verge of unviability.

    “It has been showing signs of deterioration for more than two decades and was destined to permanently close operations with the opening of the New Mexico City Airport in Texcoco (NAICM). The NAICM would have taken over all of AICM’s operations with a capacity for growth in the medium and long term. The project would allow us to have a world-class airport for the rest of the 21st century. The cancellation of the NAICM revived the operation of the AICM by decree. The problem is that such a decision left it without economic, operational or technological resources to continue operating at pre-pandemic levels. It is impeded in the short and medium term, let alone in the long term,” said.

    The specialist recalled that the AICM's main income, the Airport Use Fee (TUA), is committed for at least the next 25 years to pay the debt of a cancelled project, the Texcoco Airport, in the hands of bondholders (divided into four series maturing in 2026, 2028, 2046 and 2047) whose principal amount is 4.2 billion dollars and around 8.5 billion dollars including the projected interest payment until the final maturity date of the last series in 2047. “There is no money for renovations, maintenance or technological updates of any kind” he pointed.

    Juan Carlos Machorro added that, unfortunately, incorporating the Felipe Ángeles International Airport (AIFA) and the Toluca International Airport (AIT) will not solve the problem.

    He explained that even if the challenges for which the project was conceived were resolved, AIFA is insufficient. Operating together at their maximum capacity, AIFA and Toluca International Airport AIT would barely reach 50% of the total capacity of AICM (50 million passengers per year). “The challenges are: simultaneous operation with the AICM, solving the insufficient infrastructure for loading and transport, achieving land and air connectivity, providing the system with mobility and access routes, warehouses and hangars.”

    “Infrastructure assets have a useful life and AICM has already seen its best days. Reviving AICM, even accompanied by the AIFA and AIT projects, represents more problems than solutions. Without entering into political agenda controversies and electoral immediacy, the country deserves a world-class airport in the Valley of Mexico, whose operational viability extends widely into the rest of the 21st century. Better times will come,” concluded.

    Mexico City Office

    Tel. +52 55 5279 5400

    Monterrey Office

    Tel. +52 81 8133 6000

    Queretaro Office

    Tel. +52 442 290 0290

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    Redesign of airspace is urgently needed

    Written by Santamarina + Steta en . Published in Updates.

    Juan Carlos Machorro, partner in charge of the transactional area and expert in aeronautical and airport law, points out that “there is an urgent need to redesign airspace and aeronautical policy in order to address the causes of recent air incidents in the Mexican aeronautical sector.”

    Juan Carlos Machorro explained that a participatory policy is needed that incorporates scientific thinking and the voices of key industry players.

    “It is time to listen to each other and join forces. We can redesign an aeronautical policy that will yield results for everyone in the short, medium and long term,” said the specialist. “It is also time to approach possible solutions that arise from privileging open and permanent dialogue among interest groups, technical and scientific thinking and the development and well-being of the sector and the country's economy.” 

    The expert recalled that, at the threshold of the most disruptive effects of the pandemic, international organizations estimate that pre-pandemic operating levels of commercial aviation would not be seen again until 2024. 

    “However, the recovery in demand for air transport has been much faster than expected and it is perhaps the right time to recalculate the flight and reflect on the best way to support the evolution and growth of the sector,” he said.

    Dialogue is needed in the industry

    Machorro explained that a comprehensive solution involves calling for dialogue with all industry participants: authorities, concessionaires, permit holders, air transport operators, technical personnel, traffic operators, airport service providers, complementary and commercial services, insurers, manufacturers, lessors and financiers.

    He recalled that “a little over twenty years ago, the Federal Government established an aeronautical policy by listening to these participants. The premises and prevailing circumstances are very different from those of today. In this sense, it would seem that the current situation is more than propitious for designing a policy in line with the new challenges of the industry. In a holistic, comprehensive manner and with a long-term vision.”

    The partner in charge of the transactional area and an expert in aeronautical and airport law listed the essential concepts for the rethinking of a new aeronautical policy, based on those that affect industry participants: operational safety, connectivity, legal certainty, coverage and quality of services (air transport and airports), open access to a greater percentage of the population, compliance with international standards, training of aeronautical technical personnel, sufficient budgetary, technological and human resources.

    He explains that “it is essential to listen to the needs and preferences of the end user: the passengers. It is time to listen to each other and join forces. We can redesign an aeronautical policy that will yield results for everyone in the short, medium and long term,” he stressed.

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    The regulatory and tax landscape of cryptoassets: Peru, Brazil, Spain and Mexico

    Written by Santamarina + Steta en . Published in Events and Webinars.

    We invite you to our webinar where experts from Peru, Brazil, Spain and the representative of Mexico, our partner Ricardo Orea, will comment on the regulatory and fiscal framework applicable to operators in the cryptoasset industry, legislative trends and the main challenges generated by operations with such digital assets.

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    EU acts as authority via T-MEC

    Written by Santamarina + Steta en . Published in Updates.

    Expert says it is difficult for Mexico to file a labor complaint against the US.

    Through the USMCA, the United States exercises labor authority functions in Mexico, since it will be in charge of sanctioning in the event of a violation of what was agreed in the trade agreement that both countries share with Canada, said the managing partner of Santamarina + Steta, Juan Carlos de la Vega.

    The lawyer, who heads the firm's labor practice, warned that the United States-Mexico-Canada Agreement (USMCA) did not establish a level playing field for the three countries.

    If the United States wants to initiate a rapid response labor mechanism against Mexico, it can do so without any condition, but in the opposite case, the prerequisite must be that a U.S. agency reviews and rules on the issue, prior to the controversy.

    With the entry into force of the USMCA in July 2020, the US government can use the rapid response mechanism, even though Mexico is in the implementation phase of the 2019 labor reform and has until May 1, 2023 to legitimize collective bargaining agreements.

    “The real point is that it is a unique and special condition in terms of labor. The United States has two agencies: the USTR (United States Trade Representative) and the Department of Labor, which are acting as authorities in Mexico. That is complicated, which puts up a barrier for Mexicans to file a complaint against the Americans,” he explained.

    Source: El Universal

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    Invex Controller issues stock certificates

    Written by Santamarina + Steta en . Published in Deal Announcements.

    Invex Controller, SAB de CV carried out the fifth issue of long-term stock certificates for the amount of $2,000,000,000.00 (two billion pesos 00/100 MN), under the dual program of short- and long-term stock certificates authorized for a maximum amount of up to $5,500,000,000 (five billion five hundred million pesos 00/100 MN). Invex Casa de Bolsa, SA de CV, Invex Grupo Financiero acted as the placement intermediary for the transaction.

    Santamarina and Steta, with the support of the team led by Sergio Chagoya, Diego Ostos y José Antonio López, acted as legal advisor to the station in this process.