March 24, 2021

Mexican Congress passed an energy bill that will change the distribution rules under which electricity is fed to the power system. Specifically, the bill prioritizes energy plants owned and operated by the Federal Electricity Commission, followed by solar, wind, and combined cycle stations owned by private entities. As a result, no new renewable energy projects are likely to be developed in the coming years, impacting Mexico’s ability to fulfill its commitments under the Paris Agreement and USMCA. Business organizations across the country have been vocal about their opposition, highlighting the impact to the energy sector and national economy.

Last year, the State of Baja awarded a bid for the development of a photovoltaic power plant. NextEnergy signed a 30-year contract to provide the state its own supply of electricity. The state’s current 3,040-megawatt demand often causes energy and water deficits, especially during the periods of high temperatures, forcing it to rely on private companies which results in volatile prices. Deficits have further increased over the summer due to a greater percentage of individuals working and studying from home during the COVID-19 pandemic. The solar plant project is estimated to decrease the energy deficit by 20-30%and help reduce electricity bills across the state. The federal government has so far declined to grant the necessary permits for the project to be implemented.

March 24, 2021

Baja’s State Government announced the following changes to restrictions and precautionary measures following a statewide decrease of new COVID-19 cases:

• Restaurants, retailers and hotels may operate at up to a 75% capacity, including access to common areas.
• Gyms, public pools, spas, and sport centers may operate at up to a 65% capacity.
• Public transportation vehicles, museums, places of worship, public parks, theaters, and supermarkets may operate at up to a 50% capacity.
• Hair salons may operate at up to a 50% capacity and by appointment only.
• Sports events may take place with no audience present.
• High-risk activities including bars, nightclubs, mass events and large gatherings remain prohibited until further notice.

State authorities are working on a pilot program to gradually reopen schools. The program would designate two educational institutions per municipality to implement a series of health protocols, which include alternative schedules and prioritizing vaccines for school workers returning to classrooms. In addition, state authorities are currently evaluating San Diego’s vaccination approach to determine if Baja could implement a similar model and designate vaccine superstations to boost access to vaccines.

At the Federal level, Argentina’s President Alberto Fernandez visited Mexico and met with President Lopez Obrador and representatives from the private sector. He also toured a local laboratory where AstraZeneca’s vaccines are being processed and distributed. Both leaders are working closely with Carlos Slim’s Foundation to produce and distribute the COVID-19 vaccine in Mexico and Argentina.

March 24, 2021

Presidents Biden and Lopez Obrador met virtually on Monday to advance joint efforts to address migration and development in Southern Mexico and Central America. Both Presidents reaffirmed their commitment to bilateral collaboration to fight the pandemic, reactivate our shared economy, and address climate change. This includes efforts to deepen cooperation on the COVID-19 response by enhancing public health capabilities, information sharing, and the development of border policies. In addition, they recognized the strategic importance of the bilateral economic relationship and the role that the United States-Mexico-Canada Agreement (USMCA) plays as a driver for North American prosperity. A joint statement is available here.

President Obrador was also in Tijuana earlier this month, where he met with state and local officials to discuss a plan to ensure public health and safety in the city.