One of many stores closed by the coronavirus in the city of Guanajuato.
The coronavirus crisis forced the permanent closure of an average of 164 businesses per day in April and May.
Data from the Mexican Social Security Institute (IMSS) shows that a total of 9,984 formal sector businesses shut down for good in the two-month period – 6,689 in April and 3,295 in May. The combined figure is equivalent to 42% of all new businesses that opened in 2019.
The total number of formal businesses in Mexico at the end of May was 997,767, according to IMSS.
Experts say that the coronavirus-induced economic slowdown and the lack of financial support from the government were the main factors that caused the closure of almost 10,000 businesses in just two months. Mexico shed about 900,000 formal sector jobs in the same period.
Jesús Rubio, a public policy researcher at the College of the Northern Border in Monterrey, said that a lot of businesses, especially small and medium-sized ones, simply didn’t have enough cash flow to meet their fixed expenses and as a result were forced to close.
He predicted that the economic recovery will be slow and that more businesses – restaurants and entertainment venues, in particular – will close due to lower demand for their goods and services.
The government is offering loans of 25,000 pesos (US $1,120) to help businesses weather the coronavirus storm but has acknowledged that many small business owners haven’t even applied because the amount is too small. It has rejected calls for businesses to be allowed to defer their tax obligations until the worst of the economic crisis is over.
Armando Guajardo Torres, president of the Mexican Employers Federation’s labor commission, said that more government support is needed if further business closures and job losses are to be avoided.
He said that it would likely be two years before the total number of formal businesses in Mexico returned to the level seen at the start of 2020.
José Luis de la Cruz Gallegos, general director of the Institute for Industrial Development and Economic Growth, a think tank, said that once IMSS publishes information that indicates the sectors in which the shuttered businesses operated, the government will be able to better target financial support.
But even though the economy is predicted to contract by about 8% this year, President López Obrador has ruled out increasing public debt to support the private sector, stressing that he wants to keep the nation’s finances healthy.
Making alegría in Tulyehualco, a center for the cultivation of amaranth.
Alejo Ávila Camacho surveyed his field of amaranth plants, now turned a bright red and ready for harvesting.
“Tulyehualco,” he said, “is the place for amaranth.” Its complete name is Santiago Tulyehualco, one of 16 pueblos that make up the borough of Xochimilco, located in the southern part of Mexico City, and it’s known as a center for amaranth cultivation.
Ávila estimates that 200 people in the pueblo grow it. “We have planted here since our ancestors,” he continued. “Every pueblo has its own traditions, customs. Here, it is amaranth.”
Amaranth is one of the few plant species whose leaves and seeds can both be eaten. Its leaves are a good source of beta carotene, proteins and ascorbic acid and are also high in calcium and iron and can be eaten raw, in salads, or cooked. The seeds, which are toasted prior to eating, are high in protein, fiber and antioxidants and are a good source of calcium and a number of other minerals.
This has led to its promotion as a superfood in Mexico, where it has a long history. But that history almost ended after the Spanish Conquest.
Alejo Ávila in his field of amaranth plants.
Mayans first cultivated amaranth, which is actually a group of about 60 species, in the state of Oaxaca between 8,000 and 10,000 years ago and it was a critical part of the indigenous diet, along with corn and beans. In addition to being an important food source, many indigenous cultures in Mesoamerica considered amaranth to be a divine plant and it had a major role in religious ceremonies.
Aztecs used amaranth seeds to create idols representing their gods and, during ceremonies, these idols were eaten. This proved to be a serious problem for the Spanish who found it blasphemous because it was too similar to the Catholic Church’s ritual of communion. And so they prohibited the plant’s cultivation.
Another possible reason for the prohibition was that the idols were red and it was thought that the color came from mixing the seeds with the blood of sacrificial victims, something that would further upset the Spanish.
There are differing opinions about that in Tulyehualco. “Our ancestors, our grandparents, said that the Mexicas used to mix amaranth with blood to make their idols,” said Ávila. “Our ancestors saw this.”
But Camilo Morales Granadas, one of the owners of Sabor de Amaranto in Tulyehualco, doesn’t agree. “Mexicas mixed amaranth with a red tuna (the fruit of the nopal cactus) that produces a very intense red. We know this because we in the pueblo have this knowledge.”
There’s no definitive proof either way.
Amaranth plants ready to harvest.
The Spanish may have also banned amaranth because of its important role in indigenous diets and because it was eaten by Aztec warriors before battle. Depriving people of it could weaken a population. Whatever the reason, fields of amaranth were burned, its cultivation was banned and anyone caught growing it risked having their hands chopped off or losing their life.
Amaranth survived because it was grown clandestinely in parts of what had been the Aztec empire and by the Mayans in the mountains of Oaxaca. Tulyehualco’s residents have benefited from its survival.
Amaranth is harvested in late December in Tulyehualco and during that time, Ávila’s days start in the early morning. “It must be cut when it is not so hot,” he said. “When it is hot, the seeds will fall out when you cut.” He uses a small sickle to cut the stalks using a quick upward motion, then places them in small piles on the ground where they’ll dry in a week or so. The dried stalks are shaken over a canvas to release the seeds, which are then toasted and made into a variety of products.
The Féria de Amaranto — the Amaranth Fair — has been held in Tulyehualco since 1971 but was canceled this year because of the pandemic; with luck, it should return next year. The fair’s a great place to sample all the different ways amaranth is used, and although that wasn’t possible this year, stores are still open and offering a wide selection of products.
Diana Concepción Bravo has been selling amaranth products for 45 years. “Alegría is probably the most popular item,” she said. “It has nuts, amaranth, cranberries, fruit and honey. Also, obleas, and atunero, which a small, round cookie.” The store is also stocked with several varieties of churritos, tasty amaranth sticks flavored with lime, chile, cheese or nopal.
While most people know about the sweets and snacks made from amaranth, there are also healthier options. “We want people to consume amaranth as a food, as they did before, not just as a sweet,” said Morales Granadas. “We want to use it in part to return to our roots, our culture.”
A woman makes amaranth wafers called obleas.
His business sells amaranth powder (used to make a protein drink), pancake mix, amaranth bars and granolas. It’s even possible to buy hamburgers made from amaranth.
And now there’s another popular way to consume amaranth: beer.
“Amaranth beer is very new. It is an artisanal beer,” said Carlos Arzuvida, the manager of Domingo Santo restaurant, locatedjust off Mexico City’s zócalo. “It’s completely different from other beers. Most beers are heavy; this is light with a dry, sweet and creamy taste.”
His restaurant sells a beer simply called “Amaranto” made by Cervecería Aztlán while Sabor de Amarantoin Tulyehualco sells an amaranth IPA and a brown ale.
Downing a few of these tasty brews often makes a person feel like belting out Cielito Lindo, a popular song written by Quirino Mendoza y Cortés, a native of Tulyehualco.
Joseph Sorrentino is a frequent contributor to Mexico News Daily and lives in San Gregorio, Xochimilco.
Mexico City residents are getting out more after two months of confinement.
President López Obrador’s call for people to come out of home confinement despite the ongoing coronavirus pandemic could cause Mexico’s health system to collapse, says the president of the National Federation of Medical Schools.
In an interview with the newspaper El Financiero, Dr. Belinda Cázares Gómez said the president’s remarks are a reflection of his desire to reactivate the economy as quickly as possible.
Noting that a lot of people are in “very precarious” financial situations, Cázares acknowledged that reopening the economy is important but warned that it could cause coronavirus infections to spike.
“We don’t even know if we’ve reached the peak [of the pandemic] yet,” she said.
“Unfortunately, the risk of relaxing … the confinement is that there will be a lot more infections. Hopefully it won’t happen but the risk is clear and the future looks very ominous because the health system could collapse even though they’ve opened some hospitals that had been abandoned,” Cázares said.
The doctor said the coronavirus pandemic in Mexico has exposed the poor condition of the health system, which she blamed on years of neglect.
“We can’t blame this government, the health system wasn’t created a year and a half ago,” Cázares said.
National data presented by the Health Ministry on Tuesday night showed that 46% of general care beds set aside for patients with serious coronavirus symptoms are currently occupied, while 39% of those with ventilators are in use.
However, the occupancy levels are considerably higher in states with large coronavirus outbreaks.
Just under three-quarters of general care beds are currently occupied in hospitals in Mexico City and México state, while more than 60% of those with ventilators are in use in those two entities as well as Baja California.
Dry laws have been a half-hearted effort at reducing violence.
I don’t know about y’all, but I could really use a beer.
Enough people have felt like this lately to warrant the seeking out of things much stronger than beer in the face of varying degrees of “dry laws” around the country, as evidenced by the number of deaths and hospitalizations from tainted, “bootleg” spirits around Mexico.
Plenty of people decided pretty much immediately that they would circumvent the law, and plenty of out-of-work and possibly bored amateur producers were more than happy to meet the new demand. The efforts to prevent alcohol consumption would be laughable if they weren’t so blatantly sad.
In my own city of Xalapa, Veracruz, the sale of alcohol has been restricted to between the hours of 12:00 p.m. and 5:00 p.m., Monday through Thursday. If you’re at the store at 5:30 p.m., as I have found myself for the past couple of weeks hoping to score a bottle of cabernet, you’re out of luck (related side note: Mexico produces some excellent wine. Like, really good).
It would, of course, be hard to argue that the consumption of alcohol helps things very much. The evidence is overwhelming that alcohol is involved in all manner of social sins, from domestic violence and full-on homicide to smaller annoyances like nonsensical slurred speech or holding your drunk friend’s hair back while she cries and vomits all over the place. If we’re looking for an innocent scapegoat, we’re not going to find it in mezcal.
But kind of sort of restricting the sale of it sometimes in some places is sure a half-hearted effort at reducing violence if I ever saw one. Even China, with its iron grip on things as personal and minuscule as the day-to-day behavior of its citizens, would have to organize and mobilize its gigantic social control machine for days before implementing something like that.
And if there’s one thing I’d bet a million dollars on, it’s that Mexico is no China.
My main question here is this: did anyone really think this through in a deep, serious way? It feels like something that’s just for show, possibly a way to get skeptical people to understand the gravity of the situation we’re in, a way for the government to say, “See? We’re doing something!” at an unprecedented time of uncertainty.
Perhaps the restrictions of times and days will prevent last-minute impulse buys of alcohol that could be consumed at ill-advised impromptu parties. A full ban, as some places instituted, would ensure the prevention of these get-togethers even more. This is a quarantine, people!
Continuing to permit a behavior that lowers people’s inhibitions during a time we need to exert more self-control than ever just seems like a recipe for disaster.
Maybe people having less access to alcohol in general will reduce the incidence of domestic violence in the home, where many are cloistered and stressed together.
If there’s one thing we’re good at in this country, it’s planning parties in advance. Even in the face of a complete ban, we will definitely figure something out. Not to mention it presents just the perfect opportunity for daring and fun macho posturing: “Oh, you say we can’t get alcohol? Challenge accepted.”
Control is an illusion, especially here. I mean, we can’t even keep people from murdering or stealing from each other. With over 95% of criminals totally getting away with whatever crime they commit, it’s hard to imagine anything but a collective eye roll in response to a paternalistic “really, now, behave yourselves!”
This, to me, is the most reasonable explanation and justification for a ban, because it’s true: alcohol often is involved in domestic violence cases. Suddenly — at least for those actually obeying quarantine rules — families are together much of the time and stressed much of that time, many as they watch their bills pile up and income dwindle in the face of much-less-than-impressive “stimulus” loans. I’m sad to say, however, that domestic violence would continue to be a problem without any alcohol or drugs, as it’s a cultural problem … not just one that pops up when people are under the influence of some kind of substance that alters behavior.
I think experience has proven that people will do whatever they want with their own health, and to a large extent, that of their families.
Banning alcohol, I think history has proven, is not typically an effective strategy. Rather than a futile, half-hearted exercise, why not focus our efforts on trying to reduce violence and stress in society in general? I don’t know, say, a daily (or maybe hourly at this rate) meditation and relaxation program on public radio paired with things that actually help people reduce their stress levels, like direct cash handouts so people can stay afloat while we’re in economic free-fall but still expected to pay for everything like we did before.
All I know is that a beer or a glass of wine (or a shot of tequila or mezcal — pick your poison) can really help take the edge off. Plus, there are so many things we can’t do suddenly. At least let us have a beer in our living room. Geez.
Sarah DeVries writes from her home in Xalapa, Veracruz.
Sports clubs and gyms across Mexico have taken an economic punch to the gut since they were forced to close due to coronavirus restrictions, and owners and managers are asking the government to reclassify them as essential businesses and allow them to reopen.
If the same concession was awarded to the beer industry, why not allow exercise to resume as well, argues Alfredo Jiménez de Sandi, president of the Sports Club Managers and Administrators Association, which represents 72 gyms and sports clubs across Mexico.
Many began closing their doors three months ago on March 17, and under the current “stoplight” system they will be one of the last businesses allowed to reopen, along with bars and nightclubs, when states reach a green light or low risk level on the federal government’s chart, something that is unlikely to happen before September.
Jiménez de Sandi is hopeful that the government will reconsider and allow gyms to reopen at a reduced capacity of around 25 to 30%.
In the meantime, many gyms are optimistically preparing for the day they can once again open their doors to customers and are training employees in hygiene measures and rearranging equipment, entrances and exits to avoid crowding, as well as investing in thermal imaging cameras in order to monitor the temperatures of staff and clients.
Gyms are also readying discounts and other financial incentives to get people back in their establishments and working out again.
The economic outlook for this sector of the economy is decidedly bleak. According to Rodrigo Chávez, president of the Mexican Association of Gyms and Clubs the coronavirus has caused losses of up to 6 billion pesos (US $269 million) and put nearly 100,000 jobs at risk.
Mexico’s coronavirus czar, Hugo López-Gatell, is so far not budging on reclassifying and/or reopening exercise clubs any time soon.
“Although relatively small, the risk lies in physical contact, proximity, contact through inert surfaces and, in addition, a physiological condition which is accelerated breathing, which would lead to a greater probability of contagion between people,” the deputy health minister said.
The city of Chicago is suing the Mexican airline Interjet for US $2.56 million for failing to pay taxes and fees owed to O’Hare International Airport.
The newspaper Reforma reported that a lawsuit was filed against the low-cost carrier in the United States District Court for the Northern District of Illinois on June 9.
The city of Chicago alleges that Interjet has breached the terms of a 15-year contract it signed in May 2018.
The city claims that the airline failed to pay $360,000 in airport taxes between July 2019 and January 2020. It also says that Interjet hasn’t paid $1.7 million in fees for services and storage space and $334,000 in administrative fees.
According to the lawsuit, the city notified Interjet of its debts on February 18 but the airline has still not settled them. The two parties have been summoned to participate in a telephone hearing on August 10.
Reforma reported that if Interjet fails to reach a settlement with the city, it runs the risk of having its United States-based assets and/or bank accounts seized.
The airline has been plagued by financial problems for years, and was issued an order by the Mexico’s Federal Tax Administration (SAT) in August 2019 to pay off some US $27 million in back taxes. Interjet negotiated a settlement in court requiring that it pay 10% of net profits each month in order to chip away at the debt.
In April this year, the SAT placed an embargo on a property in the upscale Mexico City neighborhood of Polanco that serves as the headquarters of the Fundación Miguel Alemán, a charitable foundation set up by the family of Interjet president Miguel Alemán Magnani.
The airline responded to that move by issuing a statement that said that it had assets exceeding US $2.25 billion, more than enough to cover its current tax debt of $28.16 million. It also highlighted that it already has an agreement with the SAT to gradually pay back its tax debt.
While Interjet denies that it is in a precarious financial situation, its revenue, like that of all other airlines, has plummeted as a result of the coronavirus pandemic.
Interjet passenger numbers were down 97% in April as the airline only operated on five domestic routes, having canceled all its international flights in late March. As of Tuesday, Internet is operating 14 domestic routes, a number well below the 87 routes – including 45 international ones – it was flying in January.
Villegas and Barajas were murdered Tuesday in Colima.
A federal judge and his wife were murdered in their Colima city home on Tuesday morning, federal authorities said.
Uriel Villegas Ortiz, who handled drug trafficking and other organized crime cases, and Verónica Barajas were shot and killed in front of their two daughters, aged 3 and 7, and a domestic worker.
The gunmen fled the murder scene and remain at large. Upon arrival at the judge’s rented home, the murderers feigned interest in a pickup truck he was selling him before opening fire, the newspaper Reforma reported.
Before moving to Colima in February, Villegas presided over cases involving the sons of two of Mexico’s most notorious drug lords. In 2018, he heard a case against Rubén Oseguera González, son of Jalisco New Generation Cartel Leader Nemesio “El Mencho” Oseguera.
“El Menchito,” as Oseguera González is known, was not convicted of any crimes in Mexico but was extradited in February to the United States, where he faces drug trafficking charges.
In a separate case, Villegas denied an application filed by Ismael Zambada Imperial – son of Sinaloa Cartel leader Ismael “El Mayo” Zambada – for a definitive suspension order against his extradition to the United States. The slain judge also heard cases related to fuel theft and money laundering.
Supreme Court Chief Justice Arturo Zaldívar called on authorities to carry out a thorough investigation into the death of Villegas and his wife and urged them “to guarantee the safety of federal judges and their families.”
“It’s the duty of the state to guarantee the safety of all citizens but especially those who bravely … risk their lives to protect the rights of everyone,” he said during a virtual court hearing.
At his regular news conference on Wednesday morning, President López Obrador condemned the attack and pledged that the murders won’t go unpunished.
“We [the government] have the mission and mandate to guarantee peace and tranquility in the country, and we’re not going to give in to any threat or [act of] intimidation. Nothing will stop us from cleaning the country of corruption and guaranteeing justice and peace,” he said.
“[The murder investigation] is progressing [and] I can say there will be no impunity. … We’re going to continue combating crime,” López Obrador said, adding that the Attorney General’s Office and the executive and judicial powers are collaborating to in doing so.
“The relationships between the [executive and judicial] powers and the Attorney General’s Office are good. We’re closing ranks so that these types of crimes are not repeated.”
The murder of the judge and his wife came two weeks after the body of Colima lawmaker Francis Anel Bueno Sánchez was found in a hidden grave.
Colima, a small Pacific coast state, had the highest per-capita murder rate in Mexico last year. In recent years, rival drug gangs have waged a bloody turf war for control of the state, home to Mexico’s largest port at Manzanillo, through which large quantities of drugs, including shipments of fentanyl from Asia, enter the country.
Although Sinaloa is still painted red by the federal government’s “stoplight” coronavirus map, meaning the state is still at maximum risk for contagion, the government of Mazatlán announced a gradual reopening of the economy that went into effect on Tuesday.
Officials announced that a variety of businesses could officially resume operations, including office supply stores, car washes, paint shops, auto parts stores and beauty salons, although in the case of the latter by appointment only.
The decision was reached Monday after government officials convened to review recommendations by the federal government as well as concerns from business leaders who had requested the gradual reopening.
More businesses will be allowed to reopen on June 23, including clothing, shoe and jewelry stores, pawnshops, opticians and appliance stores. Shopping malls will remain closed. Businesses’ hours of operation will be restricted to Monday through Friday from 10 a.m. to 4 p.m.
Markets and supermarkets must continue to operate at 50% customer capacity, allow only one person per family to enter the store and apply safe distancing measures.
Parks and public squares can be used for exercise on an individual basis and must be kept to a maximum occupancy of 25%.
The date for the reopening of hotels and beaches has yet to be determined. Businesses will be monitored and inspected to make sure they comply with safe practices and those that don’t will be penalized.
As of Tuesday, the state of Sinaloa had registered 5,945 confirmed cases of the coronavirus and seen 933 deaths.
Only 16 states rank in a national competitiveness index that assesses their ability to develop, attract and retain talent and investment.
The 2020 index, developed by the Mexican Institute for Competitiveness, or IMCO, evaluates 10 factors in determining a state’s competitiveness, such as the trustworthiness and objectivity of its legal system, environmental policies, economic stability, the efficiency of the state’s workforce and whether policies have fostered an inclusive, educated and healthy community.
This year, states were awarded gold, silver and bronze medals based on their rankings.
A total of 10 gold medals were awarded to Mexico City, Querétaro, Chihuahua, Colima and Yucatán.
Among the gold medallists, Mexico City, which led the way with five medals in total, was recognized for having the largest number of clean energy companies in the country, and also placed first in education, health and inclusivity of women in the workforce.
Querétaro followed with three medals, all gold.
Yucatán stood out for public safety with the lowest homicide rate and the highest percentage of the population that feel safe in their homes.
However, half the states in Mexico did not place at all. The 16 states that earned zero medals were Chiapas, Durango, Guanajuato, Guerrero, Hidalgo, state of México, Michoacán, Oaxaca, Puebla, San Luis Potosí, Sonora, Tabasco, Tamaulipas, Tlaxcala, Veracruz and Zacatecas.
Meanwhile, Mexico fell three places in terms of international competitiveness this year, dropping to No. 53 on the Switzerland-based Institute for Management Development’s World Competitiveness Rankings. The drop was attributed mainly to fiscal policy and inadequate infrastructure.
Singapore remained in the No. 1 position for the second consecutive year, followed by Denmark and Switzerland.
Thousands of dead sardines have washed up on the shores of Punta Chivato, a town on Bahía de Santa Inés in Baja California Sur, and locals are blaming commercial fishermen.
On Saturday morning a local fisherman first noticed sardines on the beach, and photos and footage of the deluge of dead fish rotting in the sand and littering the sea with silver bodies have since made the rounds on social media, where the reaction has been indignation.
The bay, located on the Sea of Cortés about 40 kilometers south of Santa Rosalía in the municipality of Mulegé, was overrun by at least 10 commercial fishing vessels from Sonora on Thursday and Friday of last week, locals say.
Residents suspect that the dead sardines are what was left behind after the sardine boats had filled their holds to overflowing before departing for processing plants in Sonora. There, they grind up sardines to make fish meal which is used in aquaculture as food for farmed fish.
Local residents and fishermen, who had been prohibited from fishing due to coronavirus restrictions, were outraged by the mess and annoyed by the pervasive smell of decomposing fish whose odor was carried over a distance of some 500 meters.
Yesterday, the National Fisheries Commission announced that the dead fish were not, in fact, a result of wanton waste, but rather the consequence of a net accidentally breaking on one of the fishing boats, causing the fish to spill into the water.
The owner of the vessel, which has not been identified, will be responsible for paying for the cost of cleaning up the beach, officials said.
