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GENERAL SITUATION IN MEXICO

Weekly Review # 72 I September 15, 2021

MANUFACTURING INDUSTRY MEXICO AND THE UNITED STATES ANNOUNCED THAT THEY WILL CREATE A BILATERAL SUPPLY CHAIN WORKING GROUP.

The agreement was reached in Washington as part of the High-Level Economic Dialogue between Mexico and the United States (HLED), in which high-level officials from both countries participated. According to a joint statement issued by the Ministries of Foreign Affairs (SRE), Economy and Finance and Public Credit, the Bilateral Supply Chain Working Group will be responsible for identifying areas of complementarity in new and existing supply chains, following the interests of each country. Worldwide, global supply chains have been affected by several factors, including the shortage of semiconductor chips, logistical problems due to the COVID-19 pandemic, tariffs imposed due to the trade war between the United States and China, and the rise in international commodity prices. The secretaries presided over the meeting in which the delegations discussed the four agreed pillars, which frame the strategic vision that both countries will give to their economic relationship over the next few years: • Rebuilding Together • Promote economic, social, and sustainable development in southern Mexico and Central America. • Securing the tools for future prosperity • Invest in our people Regarding the first pillar, “Rebuilding Together,” Mexico and the United States will create a Bilateral Working Group on Supply Chains to identify areas of complementarity in new and existing chains to maintain their proper functioning in the face of possible disruptions, increase competitiveness,

MANUFACTURING INDUSTRY attract production lines from other regions of the world and reduce vulnerabilities in critical sectors while adhering to the interests of each country. They also agreed on the importance of having modern, efficient and secure border infrastructure and trade facilitation procedures. The second pillar, “Promoting economic, social and sustainable development in southern Mexico and Central America,” will encourage the United States to provide technical cooperation to address the structural causes of migration in northern Central America. Recognizing the importance of a secure and strong digital environment, it was agreed that work under the third pillar, “Securing the Tools for Future Prosperity,” will focus on mitigating cyber threats to supply chains in a coordinated manner and improving the flow of data between the two countries. Both governments share the priority of a more egalitarian economy, so the fourth pillar, “Investing in Our People,” will focus on providing vulnerable populations such as women, youth, indigenous and LGBTQ+ people with the skills training they need to be competitive in the 21st-century economy. Likewise, aware that SMEs are the basis of our economic activity, we will collaborate to integrate them into regional value chains.

AGREEMENTS WITHIN THE FRAMEWORK OF THE HLED Mexico and the United States will create a Bilateral Working Group on Supply Chains. • The two countries will promote U.S.-Mexico economic competitiveness through innovation and improved infrastructure at seaports and land border crossings, and a better understanding and streamlining of cross-border trade flows. • The United States and Mexico will identify complementary and cooperative opportunities to improve livelihoods through job creation and short-, medium-, and long-term opportunities in El Salvador, Honduras, Guatemala, and southern Mexico, increasing their trade potential and stimulating investment. • he United States and Mexico will support regulatory compatibility and risk mitigation on issues related to information and communication technologies, networks, cybersecurity, telecommunications, and infrastructure, among others. • They will also focus on providing vulnerable populations such as women, youth, indigenous and LGBTQ+ populations with the skills training they need to be competitive in the 21st-century economy. • They will consider options for joint technical training and education programs in all priority sectors.

GOOD NEWS COAHUILA SENDS 1,000 CHILDREN TO THE US BY SCHOOL BUS TO GET THE VACCINE AT THE BORDER. Maquiladoras in Piedras Negras got Maverick County, Texas, to authorize a thousand workers’ children immunization. The first mass vaccination of Mexican minors from the coronavirus will take place on the other side of the border. This Tuesday, a total of one thousand children and teenagers between the ages of 12 and 17 from the municipality of Piedras Negras will be driven, with the support of the Government of Coahuila, to Texas to receive the first dose from Pfizer, one of the few biologics authorized for children under 18. The State Secretary of Health, Roberto Bernal Gomez, acknowledged that the maquiladora companies, with a presence on both sides of the border, were responsible for donating these doses. The state administration of Miguel Angel Riquelme has given the green light and has participated in the negotiations to obtain the vaccination of these children, children of workers of the maquiladora companies located in the municipality, such as Rassini. “We are going to take the children to the Mexican border, there will be buses that will be circling the bridge, they will be vaccinated in the United States, they will return, and we will monitor them there,” explained the state official. In a day, a thousand children will be vaccinated. The expenses

SOURCE: EL PAIS

would be shared between the maquiladora companies, the Government of Coahuila, and the municipality. While in other States of the country, the doses are obtained in dribs and drabs, and after a legal journey of weeks or months in courts through appeals, in Coahuila, it was the National Council of the Maquiladora and Manufacturing Export Industry (Index) who underpinned the negotiations with Maverick County. According to the official, within the list of minors, priority was given to those who suffered from some comorbidity such as diabetes. They hope that once this first group of vaccinated children is completed, they will be able to manage, with other sectors, the application of more vaccines for this population group that in Piedras Negra alone is around 19,500 children. The strategy to vaccinate the children of maquila workers, promoted by the business organization Index, follows the same path this productive sector applied last July to vaccinate its Mexican employees against the virus. At that time, dozens of buses from Coahuila, Sonora, and Tamaulipas were organized to be vaccinated in the US. Since last June to date, vaccination in Mexico has also focused on the northern border, a key area for the economic reactivation of both countries.

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference September 8-14, 2021

MIGRATION The President expressed his opinion about the need for support in Central America to prevent migration from being forced to face the migration problem. He mentioned that he would raise the need during the High-Level meeting in Washington for the United States to support Central America to address the causes of migration with programs such as Sowing Life and Young People Building the Future. He acknowledged President Biden for his understanding of the issue. REFORM IN ELECTRICAL MATTERS The President announced that he would send his initiative to reform the constitution to strengthen the CFE (Federal Commission of Electricity, before the end of this month. COVID-19 Hugo Lopez-Gatell Ramirez, Undersecretary of Prevention and Health Promotion, indicated that the COVID epidemic is reducing at the national level. It is expected that by December, the goal of 400, 829, 830 will be reached as a commitment for this year.

SOURCE: https://www.youtube.com/channel/UCxEgOKuI-n-WOJaNcisHvSg

He pointed out that since the return to face-to-face classes, there have not been a significant number of cases in minors who are infected with COVID. Regarding vaccination in minors, he expressed that minors have a very low risk of having severe COVID. However, minors who have a disease that compromises their immune system can request to be vaccinated. Secretary Marcelo Ebrard announced that 120 million people would be vaccinated by the end of the month. NEW AMBASSADORS The President explained that today he would be dedicated to receiving credentials from around 20 ambassadors. He reported that among them is the new United States Ambassador, Ken Salazar.

MEASURES TAKEN BY STATES IN MEXICO

BAJA CALIFORNIA The State of Baja California remains considered as medium-risk or yellow light. Official reports confirmed that active cases had been reduced to 892 in the last week, with hospital occupancy at 47.76%. The percentage of the population with a complete vaccination scheme increased to 80.39%. The vaccination plan continues this week by applying the complete vaccination scheme of Astra Zeneca, Pfizer, and Sinovac to adult populations in Tijuana, Ensenada, and Mexicali. SONORA The vast majority of Sonora’s municipalities remain considered highrisk tier or orange light, with only one municipality in the maximum-risk tier or red light, three municipalities in the medium-risk tier or yellow light, and two municipalities out of 72 in the lowrisk tier or green light. Official reports confirmed 3,185 active COVID-19 cases, and 309 new confirmed cases were reported in the past 24 hours.

MEASURES TAKEN BY STATES IN MEXICO

COAHUILA On Tuesday, September 14, the application of the first dose of vaccine against COVID-19 to minors began in Coahuila. It is a shared effort between the government of Coahuila and that of Texas. Through an inter-institutional agreement, it was defined that a thousand boys and girls, especially the daughters and sons of workers from various industries, will receive the vaccine against COVID- 19. TAMAULIPAS The reception of requests from parents who want their children to receive the COVID-19 vaccine began in the southern area of Tamaulipas. A political party established a module to receive documents to promote the protection of children and young people from 12 to 17 years old, mainly those who suffer from any disease, who can request that the COVID-19 vaccine be applied to them. NUEVO LEON After legal procedures, the first minors from Nuevo Leon achieved to be immunized with the first dose of Pfizer against the COVID-19. Four male high school students, ages 13, 14, and 15, and four girls, ages 12, 13, and 16, from Monterrey and Guadalupe, were the first to receive the vaccine in the State.

MEASURES TAKEN BY STATES IN MEXICO

QUERETARO After 49 possible cases of COVID-19 were detected in schools in Queretaro, authorities reported that 10 had been diagnosed as suspicious, and 39 have been confirmed. Now, 40 classrooms are closed. They said that between the week of September 6 to 10, 38 positive cases of COVID-19 were detected and that in the week of August 30 to September 3, there was only one confirmed case of COVID-19. The spokesman, Rafael Lopez, warned that deaths in the group of 20 to 29 years doubled: from 4 to 8, he emphasized that special dates usually have an impact on the increase of assets, added to the natural impact that is expected due to the return to school in the state, the Organizational Counseling issued a series of recommendations to avoid a rebound in the coronavirus infections that could jeopardize on-site classes.

AGUASCALIENTES The provision of more beds for COVID patients in hospitals has not lowered occupancy levels, which remain at 100% in the critical area of Hospital 1 of the Social Security and 82% in the intensive care unit of Hospital Hidalgo, which is a clear indication of the danger of the contagion that is occurring among the population. The situation is no different in the ISSSTE General Hospital, which also reports saturation of its critical area. In addition to the floor beds, the IMSS COVID Hospital registered a slight rebound during the day, going from 59% to 63% occupancy, while the Hidalgo Hospital dropped one percentage point to 72%, after reporting 73% the day before. The ISSSTE Hospital remained with 33% of the beds occupied while attending infected patients. With data until September 13, there was a decrease in the incidence of new infections. Since 126 cases were reported in the last two days, the figure dropped to 94, bringing the number of people attacked by the virus in Aguascalientes 32,296.

MEASURES TAKEN BY STATES IN MEXICO

GUANAJUATO With data until September 13, there are 163,834 confirmed cases of COVID-19; 922 are under investigation, while 221,139 cases have already been ruled out. As for community-transmitted cases, 163,678 cases have been confirmed, and 146,109 cases have been recovered. There are 11,979 deaths in the state. During the follow-up of the reopening of schools in Guanajuato, 168 people with COVID-19 were reported, who were treated with the corresponding health protocols. Eightythree cases are students, and 85 cases are teachers or administrative personnel.

JALISCO The Ministry of Health of Jalisco registered 1,707 new coronavirus infections, bringing the total number of confirmed cases to 358,053 in the state and reporting 12 deaths, bringing the total number of deaths in the state to 15,165. Adding the negative results reported by all laboratories, 1 million 243 thousand 514 cases have been ruled out in Jalisco to date, and 23 thousand 241 cases are suspected. Epidemiologist Carlos Alonso Reynoso reported that there was an increase in active cases of COVID-19 in Jalisco in the last week, from 6,183 to 9,121. Still, he clarified that more information is needed to determine if this is a lag in the capture or a trend. In addition, he pointed out that there may be a direct relationship with the return to school due to the fact that there are already 14 days back to school, but we must wait for the indicators of subsequent days to see if this trend is maintained.

MEASURES TAKEN BY STATES IN MEXICO

STATE OF MEXICO The Secretary of Health of the State of Mexico announced the vaccination against COVID-19 for young people between 18 and 29 in 14 municipalities of the State of Mexico. From Monday, September 13 to Tuesday, September 21, the vaccine against COVID-19 will be administered to young people between 18 and 29 years old in Chicoloapan, Atenco, Tezoyuca, Tepetlaoxtoc, Chiautla, Chiconcuac, Papalotla, San Simon de Guerrero, Tultepec, Chimalhuacan, Texcoco, Ixtapaluca, Chalco and Valle de Chalco. CDMX Starting on September 14, the first dose of the vaccine against COVID will be applied to young people between 18 and 29 in the various municipalities of Mexico City. Adults between 30 and 39 years of age in seven municipalities will also be immunized with the second dose of the vaccine. Two weeks after the start of classes in Mexico City, there have been 52 cases of COVID-19 among the school community. According to the Secretary of Health, Oliva Lopez, none represent a risk for the patient.

VACCINATION PROGRESS

Of the total number of people immunized, 65 percent completed the protection scheme, equivalent to 39 million 319 thousand 931, and 21 million 601 thousand 539, or 35 percent, have had one application. The 32 states report a total of 92 million 080 thousand 595 doses applied. The three states with the most progress are Mexico City with 92 percent; Queretaro, 91 percent; and Quintana Roo with 86 percent.

TOWARDS THE “NEW NORMAL”

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

INFORMATION UPDATED ON SEPTEMBER 13, 2021 AT 19:00 HRS LOCAL TIME.

NEW CASES REPORTED: 4,161

SOURCE: https://www.gob.mx/salud/

CONFIRMED CASES: 3,516,043

NEW DEATHS REPORTED: 221

CONFIRMED DEATHS: 267,969

INCREASE OF CONFIRMED CASES SINCE THE FIRST REPORT MAP WITH THE DISTRIBUTION OF THE INCIDENCE RATE OF ACCUMULATED CASES OF COVID-19 BY ENTITY OF RESIDENCE.

National rate 63.74

0 to 10.0 (0 states)

40.1 to 50 (3 states)

10.1 to 20 (2 states)

50.1 to 60 (5 states)

20.1 to 30 (3 states)

60.1 to 70 (3 states)

30.1 to 40 (5 states)

>70 (11 states)

Elaborated by Prodensa with information from the Health Ministry of Mexico

PANDEMIC’S SITUATION IN THE WORLD • As of September 13, 2021, globally there have been reported 224,511,226 confirmed cases (330,815 new cases) of COVID-19 and 4,627,540 deaths (6,335 new deaths*). Lethal rate: 2.1%. • In the last 14 days, the number of new cases accounts for 4% (8,045,946) of the total of accumulated cases.

SOURCE: https://www.gob.mx/salud/

TOWARDS THE “NEW NORMAL” INCIDENTS OF CONTAGIONS IN THE POPULATION BY REGION AS OF SEPTEMBER 14

DEATH INCIDENTS IN POPULATION BY REGION AS OF SEPTEMBER 14

SOURCE: https://www.gob.mx/salud/

TIKTOK OR NOT TIKTOK FOR YOUR BUSINESS?

YOELLE ROJAS Public Affairs & Communications Director

PUBLIC AFFAIRS

Have you seen any Tiktok videos where they are selling you a product or an idea without selling it? TikTok is the newest trend in social media, with more than 500 million active monthly users. Tiktok consists of 15- and 60-second user-recorded videos that allow inapp editing and integration to other social media platforms. Today the most significant population using this platform is between 16 to 24 years old. This is an essential aspect to consider if you want to the incursion on this platform. Brands use Tiktok to engage with users through funny, almost live videos; you can find celebrities, influencers, and politicians using the platform to express and share their ideas, challenges, dance, and funny content. Before deciding if going into Tiktok, you must answer these questions:

What is the purpose of using this social media platform? • My target audience is on the platform? • Do I want to sell a product, or do I want to share knowledge content? • How do I want my target audience to know me? • Do I have the right influencer or brand ambassador to represent my company or brand in TikTok? • Does the influencer or ambassador represent the values of my company or brand? • Do I want to share content to position my company and find new talent?

Once your objective is defined, you can start planning your content and frequency. You must be authentic. Remember that everybody with a smartphone can create content and that there is a lot of material. The magic ingredient in Tiktok is humor, and don`t forget to add music and effects. Once you are ready to share your first video, don´t forget to type a good and short description of the video, add hashtags, @friends or partners, add links and allow who can see your video. This new communication channel t can be used for any purpose always that you have a clear objective. If you want to know more about the benefits of social media in your team, contact us. We will be happy to advise you.

EHS

COVID-19 VACCINE BOOSTER SHOT

Why is the Government waiting to start offering COVID-19 vaccine boosters? The COVID-19 vaccines authorized in Mexico continue to be highly effective in reducing the risk of severe disease, hospitalization, and death, even against the widely circulating Delta variant. However, COVID-19 constantly evolves. Experts are looking at all available data to understand how well the vaccines are working, including how new variants, like Delta, affect vaccine effectiveness. If FDA authorizes and ACIP recommends it, the goal is for people to start receiving a COVID-19 booster shot this fall.

LABOR

Can people who received Johnson & Johnson’s Janssen (J&J/Janssen) COVID-19 Vaccine get a booster dose of an mRNA vaccine? No, there isn’t enough data currently to support getting an mRNA vaccine dose (either Pfizer-BioNTech or Moderna) if someone has previously gotten a J&J/Janssen vaccine. People who got the J&J/ Janssen vaccine will likely need a booster dose of the J&J/Janssen vaccine, and more data are expected in the coming weeks. With those data in hand, the Government will keep the public informed with a timely plan for J&J/Janssen booster shots.

DAVID ANTUNEZ Environmental, Health, and Safety Director.

DOING BUSINESS IN NORTH AMERICA The international treaties and agreements signed by Mexico are part of the national legal order; they are part of the rule of law. For Mexico, the USMCA labor chapter has the same hierarchical level as the federal labor law of our country. Complying with the USMCA is complying with the law. The three North American countries have equally assumed to comply with all USMCA labor commitments. Companies must observe and follow the same minimum work standards without distinction between a plant in Monterrey or Guanajuato, Mexico, and one in Dallas or Besemer, Alabama, or another in Toronto or Montreal. For labor matters, doing business in North America requires equal compliance with labor standards under USMCA.

ALVARO GARCIA HR, Vice President