Balloon Cartel, Salma Hayek Politics, & China Trade Talks
Mexico Decoded’s weekly briefing makes sense of the news that matters.
1. Measles Outbreak Continues in Mexico
The current measles outbreak in Mexico has reached over 9,000 cases and taken 29 lives. It’s part of a larger outbreak that began in Canada and has spread over all of North America, and some parts of South America.
Decoded:
The government hasn’t managed to get vaccination rate were it should be. Currently it’s at 75% when it should be at 95%. The first cases occurred in the border state of Chihuahua, where 90% of contagions were among the unvaccinated.
2. Mexico and China Hold Trade Talks Amid USMCA Negotiations
Mexican trade officials met with their Chinese counterparts to discuss the imposition of tariffs on Chinese goods, which China wants removed. Mexico, on the other hand is asking, China to buy more from Mexico in an effort to even the balance of trade
Decoded:
Mexico has to do a balancing act. Tariffs on Chinese goods are meant to protect Mexican industry and appease the U.S., but China is Mexico’s second largest trading partner, and tariffed goods represent 9% of all Mexican imports. Mexico can’t afford to damage the relationship.
3. Tax Collection Court Rulings on a Run
Mexico’s tax collection authority has become more litigious during this and the previous administration, due to various tax reforms. The effort paid off as it has won 80% of the money on the line.
Decoded:
This shows tax collection is not impossible for Mexican authorities if they try. During the last administration headed by the PRI, a center-right party, just 74% of the money on the line was recouped through trials.
4. CBP Shoots First, Inflates Later
Last week, the FAA closed down the airspace over El Paso, Texas after CBP claimed it had shot down a cartel-operated drone. It turned out to be a party balloon.
Decoded:
Whether CBP knew the object’s true nature or not, this shows how US authorities are willing to pin the blame for just about anything on Mexico or drug cartels. Often, to cover for their own failures.
5. Incentives for Mexican Cinema
Mexico announced a new 30% tax credit for film productions. This includes both local and foreign films produced in Mexico.
Decoded:
Salma Hayek, one of Mexico’s most recognized actresses, gave the announcement along with president Sheinbaum. This marks a turn from the former government which cancelled its film incentive program to cut expenses.