Mexican workers currently have the longest hours of the OECD's 38 member countries. (Daniel Augusto/Cuartoscuro.com)
The lower house of Congress won’t consider a bill to reduce Mexico’s constitutionally enshrined 48-hour workweek over six days to 40 hours over five until 2024, according to lawmakers.
Ignacio Mier, leader of the ruling Morena party in the Chamber of Deputies, said in late November that Morena was aiming to get the legislation approved before the Dec. 15 conclusion of the final congressional period of 2023.
However, lawmakers who spoke with Reuters and Forbes México said that won’t happen.
Juan Robledo, a Morena deputy and president of the lower house’s constitutional points committee, told Reuters that there was no time to pass the bill this year.
Julieta Mejía, a Citizens Movement party deputy, told Forbes that she and other lawmakers were informed by Robledo that there is currently insufficient support to get the bill through the Chamber of Deputies.
As it seeks to change the constitution, the bill requires the support of two-thirds of lawmakers in both houses of Congress in order to become law.
Morena deputy Juan Robledo, president of the Chamber of Deputies constitutional points committee, said there wouldn’t be enough time this session to pass the bill. (Canal del Congreso)
“There’s no political will to approve [the bill] this year,” Mejía said, adding that she hoped that the legislation will be discussed when Congress reconvenes in February.
She said that the National Action Party (PAN) is responsible for the delay. Some PAN lawmakers have expressed concerns about the impact of a 40-hour workweek on business.
“Not all employers … are huge multinational companies with almost infinite budgets. … We have to look after … micro, small and medium-sized companies, to whom one worker more or one worker less makes a big difference,” Jorge Romero, leader of the PAN in the Chamber of Deputies, said last month.
Reuters — which said it was informed by “five lawmaking sources” that the 40-hour workweek bill was unlikely to be approved this year — reported that business groups and the PAN are resisting the legislation.
Morena lawmakers cited experts saying that reduced work hours can boost productivity. (Jessica Palomo/Unsplash)
Esperanza Ortega, president of the National Chamber for Industrial Transformation (Canacintra), said last week that reducing the workweek could increase costs for businesses by 10-20%.
“This will impact the final consumer,” the Canacintra chief added.
Ortega said that any reduction in the length of the workweek should be accompanied by increased productivity.
Addressing that issue last month, Morena Deputy Susana Prieto Terrazas, the main proponent of the bill, said that “various experts” had told lawmakers that workers are more productive when they work less.
Lorenzo Roel, head of the labor commission at Mexico’s influential Business Coordinating Council, said that if the bill becomes law, companies could collectively have to hire 2.6 million additional workers at reduced hours, adding US $20 billion to their payroll expenses.
Canacintra President Esperanza Ortega said the bill could substantially increase business operating costs, concerns echoed by PAN lawmakers and other business councils. (Canacintra/X)
“Let’s have more time and invite everyone in and review what’s happening in other countries,” he said.
López Obrador has proposed holding another “open parliament” process, during which employers, workers, union leaders, academics and others have the opportunity to express views.
Morena Deputy Hamlet García said that was a possibility, but noted that it will be up to the leaders of the various parties represented in Congress to decide whether to convene additional open parliament forums before the legislation is put to a vote.
Mexico has the longest working hours, the lowest labor productivity and lowest salaries among the 38 member countries of the Organization for Economic Co-operation and Development (OECD), Reuters reported.
At some 2,226 hours per year per worker, working hours in Mexico are around 500 hours longer than the OECD average, the news agency said.
Every year on Dec. 12, millions of faithful from all over the country travel to the Basilica of Our Lady of Guadalupe north of Mexico City to celebrate the visions the Indigenous peasant Juan Diego had of the Virgin Mary.
According to the story, the apparitions occurred on the Hill of Tepeyac (just behind the current-day basilica) between Dec. 9 and 12, 1531 – ten years after the fall of Tenochtitlan (capital of the Mexica empire) to the Spanish domain. Since then, Tepeyac has been a revered Catholic site of worship in Mexico.
However, that same hill was sacred for the Mexica even before the Spanish arrived, as it was the place of worship for another Indigenous deity: Tonantzin.
“It is no coincidence that she [the Virgin Mary] appeared to Juan Diego, who despite his name, was still an Indigenous person,” said Santiago del Bosque Arias, an Art Historian at the National Autonomous University of Mexico (UNAM).
“The Nahuatl people held great reverence for Tonantzin, and she was worshiped precisely on the Tepeyac,” del Bosque Arias continued.
What’s the story of the apparitions of our Lady of Guadalupe according to the Catholic Church?
The Virgin Mary appeared to Juan Diego on the Hill of Tepeyac five times.
As the story goes, the Virgin Mary appeared to Juan Diego on the Hill of Tepeyac five times, revealing herself as the mother of God and the “collective mother.” In his visions, she asked him (in Nahuatl) to go tell Bishop Zumárraga of New Spain to build a chapel in her honor on the Hill of Tepeyac.
Juan Diego went to the bishop two times, but he didn’t believe him and asked for proof. On the next visit, the Virgin Mary miraculously imprinted her likeness on Juan Diego’s cloak (tilma or ayate) as dozens of roses he had picked up on the Tepeyac – at the request of the Virgin Mary – fell out of his cape.
Amazed, the bishop gave his blessing and ordered a chapel constructed in her honor in the same place where the apparitions occurred. It was a modest chapel at first, renovated throughout centuries until a basilica – known today as the “Old Basilica” – was built in 1709.
Juan Diego’s cloak is now exhibited in the new basilica, where it is safeguarded behind glass.
What’s the story of Tonantzin according to Mexica tradition?
According to Fray Bernardino de Sahagún’s “General History of the Things of New Spain,” written between 1540 and 1585, there was a temple dedicated to the deity Tonantzin on the Tepeyac (originally called “Tepeaca”) before the apparitions of the Virgin Mary.
“There in Tepeaca, where the church that you ordered to be built is located, they made many sacrifices in honor of a goddess named Tonantzin […] which means ‘our mother.’”
“They said that this goddess […] appeared many times […] as a composed lady with attires such as those used in the palace. They say that she carried a cradle on her back, like someone carrying her child in it,” Sahagún described.
In a contemporary publication called “El pueblo del sol,” Alfonso Caso adds that Tonantzin was a name used by the Mexica to refer to the mother of the gods and hence “our mother.” She was also called Toci, “our grandmother.”
These records show that Tonantzin was a name given to certain goddesses who are considered mothers of the Nahuas (the Mexica and all of the communities that spoke Nahuatl), such as Cihuacóatl (‘snake woman’) or Coatlicue (‘serpent skirt’).
Sahagún also wrote that Tonantzin’s temple on the Tepeyac received many pilgrims on the feast day of Tonantzin. Men and women would go “from very distant lands, more than twenty leagues, from all regions of Mexico, bringing many offerings.”
How did the two stories merge according to historians?
“We must see the two figures as a union, or rather, the place where the Indigenous and peninsular (Spanish) parts converge,” del Bosque said, as the Virgin of Guadalupe was a “figure that facilitated the conversion of Indigenous people to Catholicism,” he explained.
After the conquest of Tenochtitlan, the Spanish colonizers destroyed symbols of Indigenous religions and replaced them with traditional Catholic imagery, building churches on top of temples.
Such was the case of Our Lady of Guadalupe’s temple, which replaced that of Tonantzin.
According to “Las informaciones de 1556” (The Informations of 1556), which contains an account of the cult to Our Lady of Guadalupe by the religious orders of New Spain, it was Bishop Alonso de Montúfar who started telling stories about the supernatural powers of the Virgin Mary’s image placed on the site of the apparitions.
That same account reveals that Fray Francisco de Bustamante – who was against the new cult surrounding the mystical image as it contradicted the Spaniards’ rule prohibiting the adoration of religious images – identified a native artist as the maker of the painting: a man known as “Marcos, Indio Pintor” (Marcos, Indian painter).
Many historians recognize Marcos as the author of the image on the basilica.
“From this, you can reflect on many things,” del Bosque said. “Why was the artist an artist of Indigenous origin? Who was the image addressed to? Why wasn’t the image assigned to one of the painters who came from Spain?”
Lady of Guadalupe image in Monterrey. (Unsplash)
While the cult surrounding the image of the Virgin of Guadalupe grew in popularity amongst Spaniards in Mexico and their descendants, in the Tepeyac, natives still honored Tonantzin instead of the Virgin of Guadalupe.
According to Sahagún, the locals’ devotion was “suspicious,” since they only made pilgrimages to the Tepeyac and not to the other churches in the region built in honor of Our Lady of Guadalupe.
However, as the Spaniards continued to celebrate mass in honor of the Virgin Mary, popular devotion eventually shifted to Our Lady of Guadalupe.
In 1666, the Catholic Church officially began an investigation into the apparitions on the Hill of Tepeyac and approved the Virgin of Guadalupe as the patron of New Spain in 1754.
Since then, the Feast of our Lady of Guadalupe has become a defining aspect of Mexican identity.
In the early 1970s, before the Transpeninsular Highway was completed, and before Mexican tourism trust FONATUR began turning Los Cabos into the internationally famous resort destination it would eventually become, two groups of people were already regularly flocking to the area: fishermen and surfers.
The first generation of surfers started coming from California in the 1950s, setting the path for all who followed, including legendary figures like Mike Doyle, Kelly Slater, and Laird Hamilton. Doyle, a champion surfer during the 60s, became a notable exponent of the Los Cabos lifestyle, eventually founding a surf school at the Cabo Surf Hotel. Slater wowed spectators at the Fletcher Los Cabos Classic in 1991, walking away with cash and ownership of an East Cape property. More recently, Hamilton partnered with local luxury resort One&Only Palmilla on a lifestyle-based apparel brand. In Los Cabos, where spectacular suites and villas are often situated near some of the most famous breaks, luxury and surfing aren’t always mutually exclusive.
It’s not the big names or the big-time amenities, however, that make Los Cabos a notable surfing destination. Rather, it’s the variety of surf breaks across a wide swath of the municipality’s 100-plus miles of coastline, from San José del Cabo and the East Cape to the Pacific Coast breaks near Todos Santos. Great waves are rideable year-round, with the breaks of choice varying according to the changing of the seasons. Yes, some of these breaks are best left to experienced surfers. But there are beginner-friendly ones, too, along with schools and lesson providers eager to introduce a new generation to the joys of surfing in Los Cabos.
How does the time of year affect surf conditions in Los Cabos?
What’s so special about surfing in Los Cabos? Its coastline is defined by not one major body of water, but two: the Pacific Ocean, and the Gulf of California, or Sea of Cortés. The conditions relative to each, not surprisingly, are the determining factors for the local surf calendar. May to October, for example, is traditionally the best time to surf on the Gulf of California side (thanks to seasonal southerly swells), while the scene shifts to the Pacific side from November to April, notably at beaches like Cerritos, San Pedrito, and La Pastora. Surfing is good year-round, in other words.
For context, Gulf of California-oriented beaches and breaks are those found in San José del Cabo, on the East Cape, and along the Tourist Corridor (the 20-mile coastal corridor that connects San José to Cabo San Lucas). The best Pacific Ocean side surf beaches are about one hour north of Cabo San Lucas by car and are located in Pescadero and Todos Santos.
Why is San José del Cabo such a great surf destination?
Surfing in Los Cabos starts with Zippers, a fast and fun right-hand reef break that has been the centerpiece of both the Fletcher Los Cabos Classic and Association of Surfing Professionals (ASP) and World Surf League (WSL) sponsored Los Cabos Open of Surf tournaments. As Surfline notes, it’s “dreamy except for the fact that Zippers is Cabo’s most crowded wave.”
Zippers is one of three noteworthy breaks at Playa Costa Azul, the others being The Middle and The Rock (La Roca). The latter is another popular, advanced-level, righty reef break, and as the name suggests, rocks (plural) are a factor. The Middle, by contrast, is one of the best beginner-friendly surf breaks in Los Cabos. A respected local adventure company, High Tide Los Cabos, has surf professionals teaching private and group lessons here. Nearby Playa Acapulquito (aka Old Man’s) is another great spot to learn or improve rusty skills, thanks to the Mike Doyle-founded surf school at the Cabo Surf Hotel.
Can you surf in Cabo San Lucas?
There are no notable surf breaks in Cabo San Lucas proper, but one is nearby, with picturesque backdrops of Land’s End and El Arco. It’s a famous one, too, and not just for the views. Monuments is its name, and its spinning left-handed point break ranks with Zippers as the most famous ride on Los Cabos’ Gulf of California side. Like La Roca, it’s best left to experts, not only because of rocks but also because of abundant stinging sea urchins.
The Cape, A Thompson Hotel, a luxury property that opened overlooking the beach (Playa Monumentos) in 2015 provides a retro California-style atmosphere, albeit of the decidedly upscale variety. A surf-themed villa and board rentals are available.
Which East Cape beaches are surfari-worthy?
Los Cabos’ East Cape begins at the outskirts of San José del Cabo and extends for over 70 miles to Los Barriles. Because dirt roads are still common in this area, some surfers have been introduced to regional surf breaks through “surfaris,” or transportation-provided expeditions from San José. However, as the East Cape continues to be developed — the Four Seasons Resort Los Cabos at Costa Palmas being a notable recent addition — surf-friendly beaches like Shipwrecks, La Fortuna, and Nine Palms will become increasingly accessible.
All three of the most popular surf breaks here are located in and around — to the north and south — of La Fortuna, one of several small off-the-grid communities along this stretch of coast. The ALA1A Surf Lodge trailer is the accommodations option of choice, putting surfers within easy driving distance (15 minutes either way) of Shipwrecks, the southernmost of the trio, a favorite of locals when the summer season brings southerly swells fueled by the region’s famous chubascos (squalls). Just don’t look for the shipwreck. It’s long gone.
What are three top Pacific Coast beaches for visiting surfers?
Like nearby San Pedrito — home to a rippable right-hand point break — Playa Los Cerritos is located in the small town of Pescadero, a few miles south of Todos Santos. The latter is famed for both its artists’ colony and its surfing, most famously at La Pastora, a local hotspot that benefits from seasonal northwest swells, and features both left and right-breaking sections. These Pacific Coast beaches are gorgeous year-round, but see their best surfing during the winter months; meaning, peak season for snowbirds.
Chris Sands is the Cabo San Lucas local expert for the USA Today travel website 10 Best, writer of Fodor’s Los Cabos travel guidebook, and a contributor to numerous websites and publications, including Tasting Table, Marriott Bonvoy Traveler, Forbes Travel Guide, Porthole Cruise, Cabo Living and Mexico News Daily. His specialty is travel-related content and lifestyle features focused on food, wine and golf.
San Miguel de Allende is one of the cities that could get its own airport in the near future. (Depositphotos)
The major tourist destination of San Miguel de Allende, Guanajuato, and the northern city of Ensenada, Baja California, could have new airports in the near future according to the Ministry of Infrastructure, Communications, and Transportation (SICT).
The SICT has requested over 15 million pesos (US $860,415) from the Finance Ministry to conduct feasibility studies, as part of a plan to strengthen the country’s airport network.
San Miguel de Allende is currently served by the Guanajuato and Querétaro airports, each located over an hour away from the popular tourist city. (Afeardv/Wikimedia)
“These studies will include surveys to determine the groundwater level and soil layers’ capacity to support the buildings as well as carrying out foundation solution proposals,” the Minister of the SICT Jorge Nuño announced during his appearance in the Chamber of Deputies on Dec. 6.
“Both projects include a study that outlines the development of airport infrastructure in short, medium, and long-term phases,” Nuño added. The feasibility studies are expected to be completed by August.
Both cities have been on the radar for their own airports since earlier this year.
Ensenada’s close proximity to the United States means it could benefit from the nearshoring boom the region is experiencing and while it does have a military base for civil aviation, the site is unsuitable for larger aircraft.
However, independent aviation analyst Juan Antonio José told news outlet T21 that neither of the projects has potential for profitability since San Miguel de Allende is close to two existing international airports, while Ensenada is located near the international airport in Tijuana.
The Basilica will be open from 6 a.m. to 9 p.m. today and tomorrow, although opening hours could be extended if necessary. (Belikova Oksana/Shutterstock)
This Tuesday (Dec. 12) marks one of the biggest dates on Mexico’s Catholic calendar, the Day of the Virgin of Guadalupe, and pilgrims are flocking to Mexico City’s Basilica of Guadalupe to pay homage to the country’s beloved Virgin Mary.
The Citizen Security Ministry (SSC) estimates that 11 million pilgrims will visit the Basilica between Monday and Tuesday, with most arriving on Monday. The National Chamber of Commerce, Services and Tourism predicts an even higher turnout of 13.7 million pilgrims – 12% more than the record-breaking 12.5 million who attended last year.
The world-famous Mexico City shrine to the Virgin Mary could see more than 13 million visitors this year, many of them pilgrims who’ve traveled thousands of miles. (Photo: Mike Peel/Creative Commons)
In preparation for the event, the SSC has announced the “Welcome Pilgrim” operation, in which more than 22,000 public officials will participate, including 1,500 police officers, six ambulances and a helicopter.
“We will have the support of 448 vehicular units, four operation bases, and we will have special care, protection and attention on the access roads,” said Mexico City’s head of government, Martí Batres, with regard to the operation.
The vice-rector of the Basilica of Guadalupe, Gustavo Watson, said that the Basilica will be open from 6 a.m. to 9 p.m., although opening hours could be extended if necessary. Some overnight stays will be permitted in the atrium, with priority given to the elderly and those who have made the longest journeys.
Watson encouraged all who are faithful to visit the ‘Morenita del Tepeyac’ on her feast day, while also stressing that the festivities will be streamed digitally for those unable to attend.
The festival celebrates the appearance of the Virgin Mary (known in Mexico as Guadalupe) to the Indigenous convert Juan Diego on Dec. 12, 1531. Both the figure of Juan Diego and the darker-skinned depiction of the Virgin of Guadalupe are important elements of Mexico’s syncretic tradition, representing Indigenous Mexico’s embrace of Catholicism.
Last year’s celebration broughtrecord-breaking numbers of pilgrims to the capital, after two years during which the event was suspended due to the COVID-19 pandemic. It is the biggest annual pilgrimage in Mexico, with some traveling hundreds of miles to attend.
The event is also an important money-maker for businesses that provide transport, accommodation, food and religious items to the pilgrims. This year, the National Chamber of Commerce, Services and Tourism estimates that the celebration will generate 15.5 billion pesos (US $889 million) in revenue across the country.
Revenue of 1.4 billion pesos (US $81 million) is predicted in Mexico City alone – 13.8% more than in 2022.
On Dec. 8 clash, a group of México state farmers clashed with suspected cartel members, leaving 14 people dead. (Screen Capture/Cuartoscuro)
A confrontation on Friday between residents of a municipality in southwestern México state and alleged members of a criminal group left 14 people dead and seven injured, authorities said.
The extortion-related clash between farmers and suspected members of the La Familia Michoacana criminal organization occurred on a soccer field in Texcapilla, a small community in Texcaltitlán, a municipality around 130 kilometers southwest of Mexico City.
The bodies of the 10 slain alleged cartel members were set on fire by the locals. (Crisanta Espinosa Aguilar/Cuartoscuro)
In footage posted to social media, gunshots can be heard ringing out as farmers and other locals, many wearing cowboy hats, attack suspected criminals with weapons such as sickles and machetes.
The confrontation reportedly occurred after members of La Familia Michoacana – a notoriously violent cartel – attempted to raise the payments they were demanding from farmers and business owners in exchange for allowing them to operate unimpeded.
México state officials told a press conference on Saturday that 10 of the dead were presumed members of the criminal gang, while four were residents of Texcaltitlán. The bodies of the alleged criminals were apparently set on fire.
Five locals and two suspected gangsters were injured during the clash. The state Security Ministry said in a statement on Friday that two people involved in the conflict were missing.
Law enforcement in México state said they are committed to improving security, while President López Obrador announced the deployment of additional federal law enforcement to the region as well. (Crisanta Espinosa Aguilar/Cuartoscuro)
Attorney General José Luis Cervantes said that three “priority objectives” of law enforcement authorities were among the deceased.
One of those killed was Rigoberto de la Sancha Santillán, a La Familia Michoacana leader known as “El Payaso” (The Clown). De la Sancha allegedly participated in a 2021 ambush that killed 13 police officers in Coatepec Harinas, a México state municipality that borders Texcaltitlán.
México state Governor Delfina Gómez said that she “deeply” regretted the violence on Friday, before declaring:
“These events do not paralyze us. On the contrary, they reaffirm our commitment to improve the security conditions in our beloved state. Rest assured that we will continue working so that episodes like this aren’t repeated. To the [residents of the] south of México state I say, you are not alone, we are with you.”
Extortion is a common – and growing – problem in Mexico, affecting both urban and rural areas of the country. Criminal groups target a wide range of economic sectors including agriculture (avocados, limes, etc.), mining, retail (tortilla shops, markets, etc.) and public transport.
Sandra Ley, a program coordinator for the think tank México Evalúa, told The New York Times that communities sometimes fight back against criminal organizations that are constantly harassing them out of “desperation.”
“The communities do this from a place of feeling fed up, of desperation, from that position of ‘no more,'” she said.
Victims of extortion often say that authorities have done little to combat the problem.
Falko Ernst, senior Mexico analyst for International Crisis Group, told The Times that extortion has become increasingly common here as crime groups “have been morphing away from drug trafficking towards a territorially based extraction model.”
On Monday, President López Obrador described the clash on Friday as “very regrettable” and noted that an investigation is underway. He also said that federal security forces have been deployed to Texcaltitlán, explaining that around 600 soldiers and National Guard Officers were sent to the municipality.
Guzmán Loera, a former Sinaloa Cartel leader who was convicted in the United States on drug trafficking charges in February 2019 and sentenced to life in prison later the same year, has been incarcerated in the U.S. since his extradition in 2017.
Joaquín “El Chapo” Guzmán in U.S. custody in 2017 after he was extradited to the United States to face trial there. (U.S. Department of Homeland Security)
His mother never got the opportunity to visit him in Colorado’s “Supermax” prison as U.S. authorities denied her visa request.
Loera was back in the news in March 2020 when she briefly met with President López Obrador during a visit he was making to Badiraguato. López Obrador was criticized for shaking hands with the elderly woman, from whom he had received a letter asking for the government’s assistance in her quest to visit her son in the U.S.
Loera, who had four sons and two daughters with Emilio Guzmán Bustillos, staunchly defended “El Chapo” and advocated his repatriation. In addition, she “always publicly denied that he was the boss of the most powerful drug cartel in Mexico,” according to Jenaro Villamil, a journalist and president of Mexico’s public broadcasting agency.
Speaking about Loera’s passing at his regular news conference on Monday, López Obrador said that “any human being who loses his or her life deserves respect.”
Her grieving family members deserve “consideration,” he added.
The famous cliff divers say they are looking forward to offering shows to tourists this holiday season. (clavadistaslaquebrada.com)
The La Quebrada diving show in Acapulco has resumed its spectacle 45 days after Hurricane Otis, the strongest hurricane ever to hit Mexico’s Pacific Coast, which damaged much of Acapulco and its surrounding port.
The cliffs known as La Quebrada have been the site of high-diving performances for tourists since 1934. Following Otis, the accumulation of debris along the coast of La Quebrada made the waters unsafe for swimmers and divers alike. This past weekend, however, Acapulco’s divers announced that they will slowly resume the shows, offering two schedules during the December holidays, depending on the number of tourists.
La Quebrada cliff divers, circa 1960s. (Photo: Archive)
The La Quebrada divers jump over 40 meters from the cliffs into a narrow channel below in what is one of the best-known performances in Acapulco. In 2021, the performance won the Touristic Excellence Award in a competition that also included European and Middle Eastern tourist attractions.
On Friday, the divers offered a first performance for free at 1 p.m. local time. “We are offering this show free of charge to the public, locals and tourists, mostly to distract them a little from what has happened in the port,” diver Giovanni Vargas told the news outlet EFE, adding that the divers have seen a drop in tourism after the devastating impact of Otis. A second show began around 6 p.m. and cost the normal entrance price of 100 pesos (US $6) per adult and 50 pesos (US $3) per child.
“We’ll see what happens when the holiday season begins in December,” Vargas continued, “We hope to regularize schedules and welcome many tourists to visit us,” he said.
The divers reminisced about when people used to see them from their boats but could no longer do so due to the losses that occurred with recreational and private yachts. “It’s sad not to have those boats that came to visit us,” Vargas told EFE.
Acapulco’s residents are facing a challenging holiday season with much of the city still lacking running water and many people still missing. Although the official death toll from Hurricane Otis is 50, local news agencies claim that the actual figure could be up to seven times higher.
Looking for a gift for the bookworm in your life? Or curious to expand your knowledge of Mexican history, culture and current events? We have you covered with our favorite reads of 2023, curated by the MND team.
Strangers by Guillermo Arriaga
“Strangers” explores the fascinating boom of science in the eighteenth century and its rivalry with religious and aristocratic standpoints.
The book shows us endearing characters, living on the edge. To write the book, Arriaga, one of Mexico’s best writers, only used words that were used in the eighteenth century.
Recommended by Camila Sánchez Bolaño, features editor
Salvar el Fuego by Guillermo Arriaga
Mexico City-born author and screenwriter Guillermo Arriaga’s novel is my personal favorite of the year. It’s got it all: love, lust, violence, beauty, shame, and deceit. Thanks to an intriguing cast of characters, I’ve learned more about social classism, politics, and modern Mexican culture than I have in my daily life here.
Bonus: It has expanded my Spanish vocabulary tenfold.
Recommended by Bethany Platanella, contributing writer
The Complete Stories of Leonora Carrington
Carrington (1917-2011) was a renegade, aristocratic British Surrealist painter who lived in Mexico City. Her short stories are strange, compelling, mythical explorations of the scope of the human imagination and our place in the world. Also funny and thought-provoking, she ponders the liminal spaces between life/death, dreams/waking, and man/beast.
Recommended by Henrietta Weeks, contributing writer
Several Ways To Die In Mexico City by Kurt Hollander
I recently returned to this 2012 non-fiction book, touted as an “autobiography of death” in Mexico’s capital. It’s a fascinating – and somewhat unnerving – read, broken into sections with memorable titles such as “Death Valley” and “Sick City.”
Recommended by Peter Davies, chief staff writer
Instrucciones para vivir en México by Jorge Ibargüengoitia
I love Ibargüengoitia’s sense of humor: the way he talks about everyday issues with simplicity and intelligence. If you want to learn more about Mexican culture and way of thinking, this novel is for you.
Recommended by Rosario Ruiz, editor
The Lacuna by Barbara Kingsolver
Born in the U.S. but raised in a series of fantastical situations in Mexico made believable by Kingsolver’s unique skill, Harrison Shepherd’s brushes with fame and history reveal the character of both countries. He is brutally caught up in governments’ nationalist fears and the even wilder judgments of public opinion.
Recommended by Ann Marie Jackson, contributing writer
This is not Miami by Fernanda Melchor
This collection of twelve devastating short stories about life in Veracruz in the 1980s, is told with Melchor’s scintillating, honest and sharp voice. Translated brilliantly by Sophie Hughes, the book beautifully binds violence, pain and mystery together into gripping reportage stories based on real-life events in the port city.
Recommended by Gordon Cole-Schmidt, contributing writer
The Labyrinth of Solitude by Octavio Paz
Paz explores the complexities of Mexican identity and culture, delving into the historical, social, and psychological aspects that shape the people. Paz reflects on the solitude inherent in the Mexican psyche, examining the profound sense of loneliness and introspection that characterizes the nation’s history and identity.
Recommended by Mark Viales, contributing writer
A Land So Strange: The Epic Journey of Cabeza de Vaca by Andrés Reséndez
The incredible story of a Spaniard’s 4,000-km walk from Texas to Mexico City in the early 1500s. Six hundred sailed from Spain, but only four survived to tell the tale.
Recommended by John Pint, contributing writer
La Revolucioncita Mexicana by Rius
Political cartoonist Rius’ sly, humorous take on the Mexican Revolution taught me more about Mexican history than some classes I’ve taken on the subject. If you want to read in Spanish but you’re not quite ready for “A Hundred Years of Solitude,” try this graphic novel.
Recommended by Rose Egelhoff, editor
The Murmur of Bees by Sofía Segovia
An enchanting and highly evocative story that unfolds in a small town in Mexico’s northeast. The story, told with the charm of magical realism, follows the lives of Simonopio and his adoptive family, the wealthy Morales, as they navigate the tumultuous times of the Mexican Revolution.
Recommended by Gaby Solís, contributing writer
The Dope by Benjamin T. Smith
Not only is this “myth-busting” history of the drug trade in Mexico a page-turner, it is a deeply-researched reference I have returned to repeatedly since first reading it.
Recommended by Kate Bohné, chief news editor
Keep an eye out for more MND staff picks this month, including favorite films, foods and cultural experiences.
Mexico's solid economic growth in 2023 surpassed last year's forecasts. (Carlos Aranda/Unsplash)
A significant appreciation of the peso, a steady decline in inflation, Tesla’s announcement that it will build a gigafactory in Nuevo León, the cancellation of Chinese lithium concessions, record-breaking remittances, cargo delays at the Mexico-U.S. border.
It’s been an eventful year in business and economic news in Mexico, where nearshoring isn’t just a buzzword, but also represents a “historic opportunity” for the world’s 14th largest economy to secure strong growth in the years ahead and guarantee economic well-being for millions of citizens — provided the country can fully capitalize on its much-touted potential.
Major infrastructure projects like the Maya Train were one of many factors that boosted the Mexican economy in 2023. (Lopezobrador.org.mx)
At Mexico News Daily, we’ve closely followed business and economic developments this year, reporting on a wide range of data, scores of investment announcements, events that have crimped the economy and hurt investor confidence, and the views of numerous organizations and people on the country’s future prospects.
As 2023 draws to a close, here’s a look back at 10 of the biggest business and economy stories in Mexico this year. Many of the developments, events and issues outlined below had a significant impact on the economic situation in Mexico this year, and in some cases will help shape the future the country will face in the years to come.
The ‘super peso’ refuses to be beaten down
Perhaps the biggest economic story of the year has been the appreciation of the Mexican peso, which was trading at about 19.5 to the US dollar at the start of 2023 and 17.35 at the close of markets on Friday Dec. 8 — an improvement of around 12%
The peso had a strong year in 2023. (Crisanta Espinosa Aguilar/Cuartoscuro)
Analysts have cited a range of factors for the peso’s impressive run this year, including strong incoming flows of foreign capital and remittances, and the broad gap between the Bank of Mexico’s record high interest rate (11.25%) and that of the United States Federal Reserve (5.25%-5.5%).
There are a range of pros and cons to a strong peso, but President López Obrador has chosen to focus on the former, and even claimed partial credit for the currency’s appreciation this year.
“There are some disadvantages [to a strong peso], but there are more advantages,” he said at a recent press conference.
The president emphasized that a strong peso has more pros than cons for the Mexican economy. (Lopezobrador.org.mx)
“We have a percentage of public debt contracted in dollars. So, when the peso strengthens, our debt goes down,” AMLO — who has cited the government’s competent economic management as a major factor in the currency’s appreciation — said at another of his early-morning pressers.
‘Heroes’ send billions home, but exchange rate hurts remittance value
Mexicans working and living abroad sent US $52.89 billion to Mexico in remittances in the first 10 months of the year, a 9.4% increase compared to the same period of 2022.
Mexico is thus on track to beat the record set in 2022 for annual remittances receipts.
With a stronger peso, the recipients of remittances have less money to spend in Mexico, unless remitters increase the amounts they wire to offset the strengthening of the local currency. There is evidence that is occurring.
“Before I used to send $100 [per week to my family in Mexico City],” Eric Vasquez, a 44-year-old New York City restaurant employee told CNBC in October. “Now I have to send $130, $140 to cover expenses.”
While AMLO frequently describes Mexican migrants as “heroes” in recognition of the substantial support they provide to the economy — remittances were equivalent to 4.5% of GDP last year — not all the money sent to Mexico comes from hardworking people with legitimate jobs. There is evidence that some of the funds are linked to drug trafficking, a Mexican think tank reported in March.
As the peso has grown stronger, workers abroad in the U.S. have had to send home more dollars to compensate. (Shutterstock)
Inflation falls, but remains above the central bank’s target
The increase in inflation last year was probably the biggest economic story of 2022. The headline rate peaked at 8.7% in August and September of last year, and was still very high at 7.82% in December 2022.
Despite the sustained decline in inflation throughout most of the year, the headline rate remains above the Bank of Mexico’s 3% target.
Consequently, the central bank has maintained its record high 11.25% benchmark interest rate since it was raised to that level in March.
An initial cut is considered likely in the first or second quarter of 2024, provided inflation returns to the downward trend seen throughout most of 2023.
Tesla generates excitement with gigafactory announcement
Four weeks before the central bank raised its key rate to 11.25%, the world’s richest person made a significant announcement of his own.
Tesla CEO Elon Musk announced March 1 that the electric vehicle manufacturer would build a “gigafactory” in Santa Catarina, a Nuevo León municipality just west of Monterrey.
A rendering of Tesla’s proposed “gigafactory” in Nuevo León. (Tesla)
Construction has not yet begun, but Musk said in October that an initial phase of the project will begin in early 2024.
While the Austin-based company hasn’t disclosed how much it intends to invest in its new plant, estimates are in the range of US $5-10 billion.
Nuevo León Governor Samuel García claimed in September that Tesla and its suppliers would invest $15 billion in the northern border state.
Is Mexico on the verge of a nearshoring boom?
As mentioned above, Tesla is one company on a long list of foreign firms that intend to establish a presence in Mexico in the near future. During the course of 2023, many others announced that they are expanding their existing operations here.
It’s all part of the growing nearshoring phenomenon, which Mexico News Daily has covered extensively this year. (Read a couple of our analysis articles here and here.)
Unsurprisingly, foreign direct investment (FDI) is on the rise, reaching a record high of almost US $33 billion in the first nine months of 2023. FDI is poised to increase further in coming years as the significant amount of investment announced in 2023 begins to flow into the country.
While there is no shortage of people who are optimistic about Mexico’s nearshoring prospects — Governor García, for example, said in March that annual growth of 10% is possible if the opportunity is seized — few have endorsed the country as an investment destination as strongly as JPMorgan Chase CEO Jamie Dimon.
Foreign direct investment reached a record high this year, as foreign companies showed interest in setting up and expanding operations in Mexico. (Safran/Facebook)
“I think it’s one of the great opportunities. … If you had to pick a country … [Mexico] might be the number one opportunity,” he said in November.
However, some experts believe that Mexico runs the risk of missing its nearshoring opportunity, or at least not taking full advantage of it, for a variety of reasons, including government policy, security concerns and deficient infrastructure, as we reported in September.
Adding her voice to the debate, Foreign Affairs Minister Alicia Bárcena expressed doubt in November that the nearshoring opportunity is well understood in Mexico and warned that countries such as Vietnam could position themselves as more attractive options for companies that are seeking to relocate, especially from China — which is increasing its investment in Mexico itself.
Economic growth significantly higher than anticipated
The OECD predicted in November 2022 that the Mexican economy would grow by just 1.6% this year. The 38-member intergovernmental organization forecast last week that GDP will expand 3.4% in 2023.
On another positive note, Mexico was the United States’ top trade partner in the first nine months of 2023, according to U.S. government data, with two-way trade worth almost US $600 billion.
Mexico was the United States’ largest trade partner for the first 9 months of this year, according to data from the U.S. Bureau of Economic Analysis. (Juan José Estrada Serafín/Cuartoscuro)
(Read more about Mexico’s impressive export and FDI growth in recent decades here.)
Data published by the Bank of Mexico showed that economic growth in that part of the country easily exceeded growth in three other more industrialized regions of Mexico in the first half of 2023.
Supercharged by public and private construction projects, annual growth in the southern region made up of Campeche, Chiapas, Guerrero, Oaxaca, Quintana Roo, Tabasco, Veracruz and Yucatán was 6% in the second quarter of the year and 4.6% in Q1.
Projects in Mexico’s south and southeast including the Maya Train railroad, the Tulum airport and the Isthmus of Tehuantepec trade corridor all helped boost construction sector growth, which drove overall growth in the first half of the year.
President López Obrador and Quintana Roo Governor Mara Lezama view construction at the Tulum Airport, another major infrastructure project this year. (Mara Lezama/X)
President López Obrador has long asserted that the construction and operation of the Maya Train railroad — which is set to partially open next week — will spur economic development in Mexico’s long-neglected south.
There are also high hopes for the trade corridor between Salina Cruz, Oaxaca, and Coatzacoalcos, Veracruz, with Economy Minister Raquel Buenrostro saying in July that it could contribute to as much as 5% of Mexico’s GDP once operational.
The federal government’s nationalistic energy policies have been identified as one impediment to greater incoming flows of investment.
The United States and Canada challenged the policies under the USMCA in July 2022, arguing that they discriminate against U.S. and Canadian companies that operate in Mexico. More than a year later the issue has still not been resolved.
The U.S. has pressured Mexico to address its concerns, but appears reluctant to request the establishment of a dispute settlement panel to deal with the matter.
López Obrador, a fierce critic of the 2014 energy reform that opened up Mexico’s energy sector to private and foreign companies, has not indicated that he is willing to change policies that favor the state oil company Pemex and the Federal Electricity Commission.
The failure to resolve the dispute this year is significant as it perpetuates uncertainty in the energy sector, and uncertainty — as everyone knows — is never good for investment.
The U.S. and Canada have challenged current energy policy under the USMCA free trade pact, but stopped short of asking for a dispute settlement panel. (Shutterstock)
We’ll be watching closely to see how the issue plays out in 2024 — an election year in both Mexico and the U.S.
Lithium, which seems to be becoming more coveted by the day, was nationalized in Mexico last year. The initial understanding was that private companies that had already been granted concessions to mine the alkali metal would be allowed to do so, although López Obrador said in April 2022 that such contracts had to be reviewed.
Fast forward to September this year, and reports emerged that the federal government had canceled mining concessions held by Chinese company Ganfeng Lithium for a large lithium reserve in Sonora. AMLO subsequently said that the concessions were still being reviewed, but Ganfeng announced in late November that the government had confirmed the cancellation.
The CEO of a Ganfeng subsidiary that is managing the Sonora project said in October that Ganfeng would defend its right to the concessions in Mexican courts.
“We do not believe that it’s legally valid” to cancel the concessions, said Peter Secker, CEO of Bacanora Lithium.
“… We’ve exceeded all the requirements for spending on the licenses,” he said, rejecting the government’s apparent grounds for canceling the concessions.
Ganfeng Lithium has a number of lithium mines, including this one in western Australia. Whether it will be able to open a mine in Sonora remains to be seen. (Ganfeng Lithium)
The battle that appears to be looming has the potential to have a significant impact on Mexico’s nascent lithium industry. Resolution could come via a decision to enter into a joint venture to mine the Sonora reserve, in which Ganfeng and the federal government, via the state-owned lithium company Litio para México, would work together on the project.
The former has expressed its willingness to participate in such an arrangement, but the government, to date, has not.
Cargo delays at the U.S. border take heavy economic toll
Another major story we covered in 2023 was cargo delays at the northern border.
On repeated occasions this year, the Texas government ramped up inspections of northbound freight trucks at various border crossings, causing lengthy delays for truckers seeking to enter the Lone Star state.
The Economy Ministry said in May that that the inspections were causing delays of eight to 27 hours for northbound freight trucks, as well as losses in the millions of dollars for both Mexican and U.S. companies.
Cargo processing closures and increased inspections at border crossings from Mexico into the U.S. caused huge backlogs this year. (Comentario U de C/X)
The actions implemented by the Texas government “are motivated by an anti-Mexican vision that is far removed from the social, cultural and economic integration between Mexico and Texas,” the ministry said.
At one point in early October, cargo worth more than US $1.5 billion was held up at the border due to stringent inspections on the U.S. side of the crossing between Ciudad Juárez, Chihuahua, and El Paso, Texas, according to Mexico’s National Chamber of Trucking.
The stated aim of the strict inspections carried out by the Texas Department of Public Safety was to prevent the entry to the U.S. of undocumented migrants and narcotics.
Governor Greg Abbott, an outspoken critic of U.S. President Joe Biden’s alleged failure to secure the border, is well-known for his hardline stance on irregular immigration.
With migration set to be a significant issue in the upcoming presidential election in the United States, will we see more economically painful truck inspections at the Mexico-Texas border in 2024?
By Mexico News Daily chief staff writer Peter Davies ([email protected])
