If your company is like many, your board of directors may be demanding that you put more effort into environmental, social, and governance issues, which have become known by the now-ubiquitous acronym “ESG.” Those demands don’t come from nowhere: consumers are demanding transparency and social responsibility. In addition, if your company does business internationally, regulators are now focused on international social justice issues (such as the use of forced labor) more than ever.
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Commerce
The United States-Mexico-Canada Agreement – Paving the Way for a Cross-Border Fintech Sandbox
Key Takeaways
- The United States-Mexico-Canada Agreement (USMCA) provides for financial and digital trade regulations that harmonize the treatment of fintech companies.
- North American companies leveraging digital assets for payments should consider strategic regional opportunities available under the new USMCA fintech Framework.
- The USMCA Parties (member countries) continue to license fintech companies using cryptocurrency and create regulatory sandboxes to incentivize experimentation with the new technology under relaxed regulatory conditions.
Mexico’s Economic Outlook During and After COVID-19 and the Maquiladora Industry
On May 13, 2020, Sheppard Mullin co-sponsored a webinar hosted by the United States-Mexico Chamber of Commerce involving Mexico’s economic outlook and the impact on the maquiladora industry. Below are some interesting take-aways from the program.
Economic Outlook
Sergio Luna, Director of the Department of Economic Research and Chief Economist at Citibanamex, explained that notwithstanding the global recession we are experiencing, the Mexican peso is projected to appreciate towards the end of 2020. However, because it will take time to recover from the recession, the GPD growth for Mexico is projected to be at -9% for 2020 but is expected to reach approximately 4.8% in 2021.
Luna also discussed the implications for the labor market, including the unemployment rate, which is expected to increase to 6.3% in 2020 from 3.5% in 2019. Lastly, he indicated that we can expect to recover over 50% of jobs lost in 2020 by the end of 2021.
Continue Reading Mexico’s Economic Outlook During and After COVID-19 and the Maquiladora Industry
NAFTA Update
The 25% steel and 10% aluminum tariffs announced today, and effective 15 days from now, raise a new cloud over the NAFTA negotiations. Although they temporarily exempt Canada and Mexico, the Administration has made it clear that the tariffs are still a prospect for Canada and Mexico if they do not make concessions on NAFTA. The Canadian and Mexican negotiators have rejected this linkage.
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Hotels and Hospitality in Cuba: OFAC and Obama Paving the Way
With more flights, relaxing regulations, a historic presidential trip to Cuba, and news of hospitality services expanding into Cuba, the pathway into Cuba for hotels and hospitality companies seems smooth. But businesses should look out for the potential hurdles and compliance risks. Don’t fret – we can help you welcome your guests.
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The FCPA Challenges of Doing Business in Cuba
On December 17, 2014, President Barack Obama announced a set of diplomatic and economic changes aimed at normalizing relations between the United States and Cuba after nearly 55 years of…
Continue Reading The FCPA Challenges of Doing Business in Cuba
Turnin’ Havana to Atlanta: The White House Opens Doors for U.S. Telecommunications Investment in Cuba and Latin America
Historic changes in relations between the United States and Cuba (that touch nerves in Hip-Hop and on Capitol Hill) and new U.S. sanctions against Venezuela may provide increased opportunities for U.S. business generally, and electronic communications technologies and infrastructure providers in particular. This week’s Cuba and Venezuela headlines, combined with recent and historic shifts in telecommunications and broadcasting markets in Mexico, on which we reported here, herald historic changes in Latin American electronic communications and infrastructure markets.Continue Reading Turnin’ Havana to Atlanta: The White House Opens Doors for U.S. Telecommunications Investment in Cuba and Latin America
U.S. Court of Appeals (2nd Circuit) Orders Argentina To Submit Proposal For Alternative Payment Plan To Avoid Debt Default… Again
On March 1, 2013, the U.S. Court of Appeals for the Second Circuit ordered Argentina to submit its proposal for the terms on which it is prepared to make payment on approximately $1.3 billion of unpaid debt obligations stemming from the country’s $95 billion debt default a decade ago. The court’s ruling is the latest milestone in the marathon court battle between the Republic of Argentina and NML Capital Ltd., a vulture fund affiliate of the hedge fund firm Elliott Associates, run by billionaire Paul Singer.Continue Reading U.S. Court of Appeals (2nd Circuit) Orders Argentina To Submit Proposal For Alternative Payment Plan To Avoid Debt Default… Again
Fifth Circuit Refuses to Enforce Mexican Reorganization Plan’s Proposed Release of Non-Debtor Bond Guarantors
The Fifth Circuit recently upheld a Texas Bankruptcy Court’s refusal to enforce non-debtor third party releases in the Mexican reorganization proceeding (known as a concurso mercantil) of Mexican glass manufacturer Vitro SAB de CV. As a result of this decision, Wall Street and the capital markets will breathe a sigh of relief and will likely continue to extend credit to Mexican corporations with some confidence that guaranties will be enforced.Continue Reading Fifth Circuit Refuses to Enforce Mexican Reorganization Plan’s Proposed Release of Non-Debtor Bond Guarantors
Fifth Circuit Expected To Issue Landmark Ruling Concerning Recognition of Foreign Bankruptcy Proceedings Contrary to US Public Policy
By Alan Feld
In a widely followed dispute, the Fifth Circuit Court of Appeals will soon render a decision on the appeal of a Texas Bankruptcy Court’s refusal to recognize non-debtor third party releases in the Mexican reorganization proceeding (concurso mercantil) of Mexican glass manufacturer Vitro SAB de CV. Wall Street and the capital markets will be watching this appeal closely as a reversal of the Bankruptcy Court would likely make lenders and bondholders extremely nervous about extending future credit to Mexican corporations.Continue Reading Fifth Circuit Expected To Issue Landmark Ruling Concerning Recognition of Foreign Bankruptcy Proceedings Contrary to US Public Policy
Mexico Added to UK Open General License for Export Controls Following Wassenaar Accession
Earlier this year Mexico became a member of the Wassenaar Arrangement for multilateral military and dual-use controls. The Wassenaar Arrangement is a group of 41 countries that cooperate in the export control of dual-use goods and technology, items that pose a risk if trade is uncontrolled because of their potential for use in military systems and terrorist activities.Continue Reading Mexico Added to UK Open General License for Export Controls Following Wassenaar Accession