Mexico is facing a complex web of political intrigue, social unrest, and economic shifts, with recent events highlighting deep divisions and a desire for reform. From Alito Moreno’s dramatic appearance on Fox News to a controversial soda tax hike and a new repatriation plan, here’s a breakdown of the key developments.
1. Mexico’s Opposition Loves Fox News:
Alito Moreno, leader of Mexico’s PRI party, seized the opportunity to attack President Claudia Sheinbaum, accusing her of plotting a “communist narco-dictatorship” and calling for U.S. intervention. This move, timed just before Mexico’s Independence Day, strategically positions Moreno as a victim of political persecution, anticipating potential legal challenges he’s currently facing including embezzlement charges and the possibility of losing his congressional seat.
2. Sheinbaum’s First Independence Cry – A Shift in Remembrance:
On September 16th, Mexico commemorates its Independence Day with a traditional ceremony: ringing a bell from the presidential balcony and shouting “vivas” – cheers of “Long live!” – to honor Mexico and its heroes. This year, President Sheinbaum made a significant change, focusing on female heroines – specifically indigenous and migrant women – breaking from the traditional formula.
(You can watch a video of this ceremony here: [YouTube Video URL: SGSGdN86PiQ])
3. Deadly Gas Truck Blast Rattles Mexico City – Regulatory Concerns Rise:
A tragic incident in Mexico City’s poorest borough saw a tanker carrying 49,000 liters of LP gas explode, resulting in 14 fatalities and over 90 injuries. Flames shot 30 meters high and destroyed over 30 vehicles. This event underscores serious concerns about Mexico’s loosely regulated LP gas market, which controls 97% of the regions it serves. The tragedy highlights the potential for reform, but history suggests change often follows significant loss of life.
4. Repatriation Plan… for Capital – A Strategic Investment Push:
Mexico is offering a significant incentive for individuals and companies to bring money earned abroad back to the country. The rate is reduced to 15% – down from the usual 30-35% – but funds must be invested in productive projects for a minimum of three years. This echoes a 2017 program that repatriated $21.5 billion in two years with an 8% tax and no investment stipulations. The current plan aims for “less flighty money, more real investment.”
5. Mexico Doubles Down on Soda Tax – A Battle Against Consumption:
Mexico is significantly increasing its soda tax from 1.64 to 3.08 pesos per liter, aiming to raise $4 billion USD and curb obesity and diabetes. This move is partially fueled by the fact that a previous tax cut resulted in a 6.3% decrease in soda consumption, while water sales soared by 16.2%. With 18% of Mexicans diabetic and sodas supplying 55% of sugar-related calories, the “Big Soda” lobby is expected to strongly oppose this measure, viewing it as a vital survival tactic.
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Fuente: https://www.mexicodecoded.com/p/deadly-gas-blast-soda-tax-and-opposition