Hogan Lovells Highlights Trends to Watch in Mexico During its 70th Anniversary Celebration

MEXICO CITY/MONTERREY 7 November 2018 – Hogan Lovells recently held a media roundtable in Mexico City as part of the celebration of its 70th anniversary of professional practice in Mexico.

The roundtable featured partners Omar Guerrero Rodríguez, Carlos Ramos Miranda, Hugo Hernández-Ojeda Alvírez, and Mexico office managing partner Juan Francisco Torres-Landa Ruffo. The panel spoke about trends in Mexico and how the upcoming administration of Andrés Manuel López Obrador could change both the legal and business landscape.

Here are some of the main trends that were discussed:

Arbitration:

Omar Guerrero Rodríguez mentioned that arbitration will be one of the main tools to settle disputes during the upcoming administration. He also added that our Mexico’s justice system is shifting proactively since the introduction of a key amendment to its Federal Commercial Code, which includes a shift from written to oral proceedings. The amendment should be fully implemented by 2020. Guerrero also mentioned how arbitration is currently a protective measure for investment agreements, as is the case with the termination of agreements in the Mexico City's new international airport project.

Employment:

Hugo Hernández-Ojeda Alvírez noted that with the new government in place there will be important changes in the labor law. He anticipates a significant increase in strike summons, as well as a direct fight by the new administration against illegal outsourcing, which may result in more transparency. In relation to [HHOA] “protection collective bargaining agreements, he estimated this fight may last throughout the whole presidential term. From his viewpoint, the Neet program will face some challenges from employers, and would have a better chance to work if it follows the formal internship program.

Energy:

Carlos Ramos Miranda warned about the risks of changing the progress made so far with the energy reform, given that, under the current law, energy demand remains stable and is growing. A large part of that is because the State is allowed to obtain hydrocarbons without taking the entire risk demonstrating Mexico’s prominence in becoming a developed country. He added that although the energy reform was not perfect, it was an important step to become more competitive internationally. In relation to the refining business, he noted that it is important to use the available infrastructure, since today the country’s refineries are only working at 60% of their production capacity.

Regulation:

Juan Francisco Torres-Landa Ruffo stated that Mexico is undergoing the transition to a new administration and this presents a unique opportunity to build new foundations. He noted that the nation's growth will be dependent on strong institutions, rule of law and accountability. Torres-Landa, also noted that to achieve good results the administration must make critical changes to ensure governance capabilities. Use of public force, collection of taxes and dispute resolution are critical to have a proper notion of a real State. Nowadays, in many parts of the country, these activities are not performed by the State. If this trend is not reversed, the full control of authorities in national territory may be jeopardized. Finally, Torres-Landa stated that expectation is that a strong and committed fight against corruption, reinforcement of security, and reduction of violence, be quickly seen as priorities in the new government.

About Hogan Lovells

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“Hogan Lovells” or the “firm” is an international legal practice that includes Hogan Lovells US LLP and Hogan Lovells International LLP. For more information, see www.hoganlovells.com.

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