April 27, 2020

After NAM, MSCI Send Letter, Mexico Pledges To Work Closely With U.S., Canada On Auto Industry Designations

With the National Association of Manufacturers and more than 325 other organizations, the Metals Service Center Institute sent a letter on April 22 to Mexican President Andrés Manuel López Obrador asking that his government allow U.S. manufacturers to continue operating safely in Mexico. The letter underscored the importance of aligning Mexico’s critical infrastructure provisions with U.S. guidance.

NAM and MSCI’s efforts already have led to at least one positive outcome. On April 24, the Mexican government issued this press release announcing a commitment to work closely with the U.S. and Canadian governments to “establish the criteria, guidelines, protocols and conditions that must be observed to move successfully towards the reopening of the productive activities of the automotive industry in North America.” Mexico’s press release also said “this collaborative exercise will serve as a precedent to determine in Mexico the return of other non-essential economic activities.” The press release does not specify when the automotive industry in Mexico will re-open, but indicated that the governments of Mexico, Canada, and the United States will release more information on the reopening plan “in the coming days.”

Click here for NAM’s unofficial translation of the press release.

The day before the NAM-MSCI letter was sent, Mexico’s Ministry of Health had issued an update to its March 31 essential business decree. The updated decree had:

  • Extended suspension of non-essential activities until May 30, with the possibility of removing those restrictions on May 18 for those municipalities with low or no transmission.
  • Revised the criteria to define transmission intensity metrics, and other risk factors and vulnerabilities associated with Covid19 in the communities.
  • Said the Health Ministry will issue guidelines to reduce mobility between municipalities with different levels of virus propagation.
  • Explained protective measures for vulnerable population should be kept in place until further notice.

The decree also said state governments should:

  • Implement pertinent control and prevention measures responding to the guidelines issued by the Health Ministry and according to the magnitude of the epidemic; and
  • Establish and execute the mechanisms for reducing mobility of inhabitants between municipalities with distinct degree of propagation, according to the guidelines issued by the Health Ministry.
  • Guarantee, within their own capacity, the implementation of these measures, periodically informing the Health Ministry as required.