LatinNews Regional Monitor: Mexico - 20 March 2020

* Mexico's private sector lobby Consejo Coordinador Empresarial (CCE) has proposed various measures for the federal government led by President Andrés Manuel López Obrador to consider, to mitigate the impact of coronavirus (Covid-19). Among other things, the proposal, which CCE states is necessary to prevent a “drastic drop in investment, support for small & medium-sized businesses (SMEs), and to preserve the jobs of 21m Mexicans”, calls on the government to abandon its objective of achieving a fiscal surplus of 1% of GDP, urging it to use resources responsibly to support the reactivation of the domestic economy. The CCE also calls for a strengthening of a government-private sector agreement on investment in infrastructure; the immediate announcement of a private sector investment plan for the energy sector; and tax relief for companies suffering as a result of Covid-19. It also calls for a tripartite team to be established comprising representatives from the private sector, government, and workers, to “analyse the economic impact and determine appropriate actions to take". While Mexico’s central bank (Banxico) has intervened as part of efforts to mitigate the impact of Covid-19, the federal government has yet to announce any fiscal measures.

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