The long-negotiated 15% minimum corporate tax rate for multinational corporations came into force on January 1, 2024 throughout the European Union. The EU becomes the first major region to make this regulation mandatory. The minimum corporate tax is the so-called "second pillar" of the OECD global agreement negotiated in recent years to adapt to the new global reality, where many companies do not necessarily have a physical presence in the countries in which they operate and achieve large profits. In particular, the new directive aims to guarantee effective taxation in situations where the parent company is located outside the EU in a country with low levels of taxation that does not apply equivalent rules. According to OECD calculations, this will force the world's 100 largest multinationals to pay tax on a portion of their profits in the countries where they operate, even if they do not have a physical presence there. The signatories of the OECD [...]
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In an effort to capitalize on the nearshoring trend in Mexico which has seen companies move closer to the US in an effort to simplify supply chains, in an Executive Order the government announced a new set of tax incentives for companies looking to relocate operations to the country. The Executive Order applies to investment in fixed assets and will be available until the end of 2024, with benefits ranging from 56% tax relief to 89% on those investments. Below is a summary of the new tax incentives and their application. Click Here to View Full Article
Proposed lease stipulations would prioritize workforce training, domestic supply chain development, fishery protection, and community engagement WASHINGTON — In another step by the Biden-Harris administration to grow America’s clean energy economy, the Department of the Interior today is proposing the first-ever offshore wind lease sale in the Gulf of Mexico. The announcement is part of the Administration’s latest actions to expand offshore wind opportunities to more regions of the country, building on investments in the President’s Inflation Reduction Act and Bipartisan Infrastructure Law to spur offshore wind deployment and create good-paying jobs for American workers. “America’s clean energy transition is happening right here and now. At the Department, we are taking action to jumpstart our offshore wind industry and harness American innovation to deliver reliable, affordable power to homes and businesses,” said Secretary Deb Haaland. “There is no time to waste in making bold investments to address the climate crisis, and building a strong domestic offshore wind industry is [...]
NEW ORLEANS — In response to the President’s call to advance offshore wind development and accelerate the transition to a clean energy economy, the Department of the Interior today announced next steps to bring the opportunity of offshore wind energy to the Gulf of Mexico. The Bureau of Ocean Energy Management (BOEM) works under its renewable energy competitive leasing process to identify the offshore locations that appear most suitable for development, taking into consideration potential impacts to resources and ocean users. BOEM is seeking public input on the identification of two potential wind energy areas (WEAs) in the Gulf of Mexico (GOM) Outer Continental Shelf (OCS). “President Biden has called on us to address the climate crisis and Interior is taking that challenge to heart. The promise of renewable energy is undeniable, as is the momentum for a clean energy transition,” said Secretary of the Interior Deb Haaland. “Today’s announcement in the Gulf of Mexico is one of [...]
Mexico and the United States will work together to lure companies to North America from Asia, the Economy Ministry (SE) said Friday. After a meeting between Economy Minister Raquel Buenrostro and U.S. Secretary of Commerce Gina Raimondo, the SE said that those two officials will collaborate to put together a “joint presentation” to the private sector “to disseminate the opportunities and economic and fiscal benefits that both countries offer for the relocation of companies.” The presentation will be put forward in the first two months of 2023, the ministry said in a statement. Buenrostro said last month that over 400 North American companies already “have the intention to carry out a relocation process from Asia to Mexico.” The ongoing United States-China trade war, proximity to the U.S., USMCA free trade pact-associated benefits and affordable labor costs are among the reasons why many companies are looking to shift operations to Mexico. The SE said Buenrostro and Raimondo discussed a [...]
Grupo México — a conglomerate owned by Mexico’s second richest person — is in advanced talks about a potential purchase of Citibanamex, Bloomberg News reported Monday. Citing people with knowledge of the matter, Bloomberg said that mining magnate Germán Larrea is attempting to finalize a deal to buy Citigroup’s Mexican retail bank, commonly known as Banamex. The unnamed sources said that no final agreements have been reached and noted that the talks could fall apart. They also said another buyer could emerge. The only other known potential buyer is Banca Mifel, a Mexican bank. Bloomberg reported last week that a group of investors led by Mifel and backed by private equity firm Apollo Global Management were in talks with banks for about US $2 billion of financing for their bid to buy Banamex. The Bloomberg sources said that Citgroup could also offload Banamex via an IPO, or initial public offering. Citigroup, a U.S.-owned corporation, announced in January it would [...]
An Irish plastics company and a United States medical technology company opened new plants in northern Mexico this week. Ireland’s Mergon Group announced that it had opened phase 1 of a 15 million euro (US $15.8 million) investment near Saltillo, Coahuila, while Becton, Dickinson and Company (BD) inaugurated a US $38.6 million manufacturing facility in Tijuana, Baja California. Mergon, which makes plastic components for companies such as BMW, Rivian and Xerox, said in a statement Thursday that it expects to create 150 new jobs in the first year of operations at its new facility in Ramos Arzipe, a municipality that borders Saltillo to the north. “Over the last decade Mergon has become a key design and manufacturing partner for light weight air management systems and clear vision systems to electric vehicle (EV) manufacturers in the US. These companies are forecasting strong growth over the coming years and Mergon is helping them achieve their vision,” the [...]
The federal government has proposed additional talks with its United States and Canadian counterparts to resolve differences over Mexico’s nationalistic energy policies as it strives to avoid an escalation of the dispute. In July, both the U.S. and Canada requested dispute settlement consultations with Mexico, arguing that the Mexican government is violating the USMCA trade pact with policies that favor state-owned energy companies over private and foreign ones, including many that generate renewable energy. No resolution was reached in an initial 75-day period of consultations, allowing the U.S. and Canada to request a dispute panel to settle the case, but the three countries agreed to continue talks past the Oct. 3 deadline. As part of that process, Economy Minister Raquel Buenrostro met with United States Trade Representative Katherine Tai in Washington, D.C., on Thursday. According to an Economy Ministry (SE) statement, Buenrostro proposed establishing “trinational working groups” that would meet in December and early January to “deal with the [...]
U.S. company New Fortress Energy (NFE), said on Tuesday that it had finalized agreements with the state-owned oil company Pemex to resume gas extraction work in the country’s Lakach offshore natural gas field. Located 93 km southeast of Veracruz in the Gulf of Mexico, Lakach is a deep water gas field owned by Pemex, and its first deep water development project. It is believed to hold up to 937 billion cubic feet of gas reserves. In a statement, the U.S. company said it will develop and operate the project, committing to complete seven offshore wells over a two-year period. According to Pemex, production is expected to begin in the first quarter of 2024. Early in November, the National Hydrocarbons Commission (CNH) approved the plan to develop the abandoned project, which was first authorized in November 2007 with an initial investment of US $1.4 billion. However, due to cost pressures, it was put on hold for [...]
The proposed lithium refinery plant is planned to start commercial production by the end of 2024. US-based automotive company Tesla is assessing the feasibility of building a battery-grade lithium hydroxide refining facility on the Gulf Coast of Texas, to support its production of electric-vehicle (EV) batteries. In a letter to the Texas Comptroller’s Office, the carmaker said it is looking to build the facility, which the firm touted as the first of its kind in North America, to process raw ore material into a usable state for battery production, reported Reuters. Lithium hydroxide, a key component used in EV batteries, is expected to be then shipped to various Tesla battery manufacturing factories through trucks and rail. Tesla’s plans to invest in the new Texas-based refining facility is said to be contingent on the ability to secure relief on local property taxes. The proposed facility is planned to be located at a site with access to the Gulf Coast [...]