By Enrique García & Vanessa Romero

According to the Organization for Economic Cooperation and Development "OECD", the infectious disease of COVID-19 will affect 30% of the Mexican Gross Domestic Product "GDP" at constant prices. This situation has made possible several legal provisions and considerations whose practical application may be new to attorneys, including a declaration of emergency pursuant to the Federal Labor Act (Ley Federal del Trabajo), various actions of the General Health Council (Consejo de Salubridad General), the application of the theories of unforeseen circumstances and of hardship (teoría de la imprevisión), and the occurrence of force majeure events, among others.

An example that clearly illustrates the above is the paradigm shift we have experienced in the context of home office or smart working, a practice that lawyers used to deeply resist. This new way or working has encouraged us to reflect on the legal provisions that will be implemented for this type of work that, without a doubt, will continue to be present in our lives even after COVID-19.

The global pandemic has also led us to dust off articles, concepts and doctrines that we only knew theoretically. Clients come to us on a daily basis with the most varied issues, arising from not only the pandemic's social and economic consequences in Mexico and the world, but also from the various measures that governments, federal and local, have issued in response. Some of the most relevant Mexico issues that have been recently raised by clients are developed throughout this Newsletter.

Some articles describe how labor and employment laws apply to employers whose industries have been forced to close as "nonessential" pursuant to federal, local and municipal decrees, like that published in the March 31 Mexican Federal Official Gazette (Diario Oficial de la Federación) to address the health emergency generated by the SARS-CoV2 virus. Other articles cover legal considerations related to the modification and suspension of civil and commercial contracts, previously agreed to by the parties, or account of the pandemic.

This Newsletter also deals with trade and maquila issues relating to disruption in domestic import and export and the disruption of various industries' supply chains. These considerations stem beyond North America, to the region that first felt the effects of the virus: China. The initial disruption to the work of Chinese suppliers, which then followed in Europe and the Americas, will deeply affect Mexico, which has an enormous manufacturing sector. And this effect will inevitably reverberate back to China, Europe, and other regions in the Americas.

Furthermore, this Newsletter explores provisions in real estate law and tax law. The emergency will affect real estate leases and contracts, especially in considering how these provisions might be altered in times of isolation and home office. The Newsletter also explores tax law, especially as related to the application of tax benefits bestowed by various government orders.

Lastly, the Newsletter covers banking and finance, particularly the modification of certain obligations that apply to financial institutions; energy law relating to the operation of projects in timed of pandemic; personal data and e-commerce; and insolvency, including the development of existing legal options in the face of the impossibility of performing obligations to creditors. Considering the evolving nature of COVID-19, and Mexico's response, it will be important to continue to monitor new provisions, agreements, decrees and other developments.

We would like to thank the legal advisors who have collaborated in the preparation of this Newsletter to support other practitioners and the general public in the U.S., Mexico and beyond in the face of this global emergency.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.