“Last Saturday, Mexico’s finance minister, Arturo Herrera, offered a grim assessment of the country’s outlook after the pandemic. This year and the next, Mexico will have “the strongest crisis since 1932,” Herrera said.
That might end up being an understatement. The Mexican economy is in shambles. GDP has contracted for five consecutive quarters, well before the pandemic began. Investment has fallen at record rates. Crucial industries, such as tourism, have collapsed. Over the past few months, the country has lost at least 12 million jobs, more than 1 million in the formal sector alone. Without help from the government, which has insisted in a policy of austerity, thousands of small businesses have gone underwater. Wages have fallen dramatically. By the time the crisis ends, experts predict 25…”
“Maria Palacio had made it.
She grew up on a coffee farm in Colombia. She knew how little money coffee farms and their workers made. When she came to the U.S. in 2010, she wanted to change that, so she founded Progeny Coffee in Palo Alto to help bring growers out of poverty.
Soon, she began supplying Google, Facebook, Microsoft and LinkedIn, providing coffee for the tech companies’ huge campuses, which allowed her to bring awareness to the coffee farmers she started all of this for.
Then tech companies began sending workers home, closing their campuses in Silicon Valley and their towers in San Francisco in the weeks before the coronavirus was officially declared a pandemic. Sales at the company, now based in Berkeley, dropped by 97% after shelter-in-place hit, Palacio said…”
“As the United States grapples with civil unrest, many people are questioning how we arrived in this situation and how the nation can change for the better. In his new book, “American Poison: How Racial Hostility Destroyed Our Promise,” New York times economics reporter Eduardo Porter presents a comprehensive examination of how discrimination based on race has hurt not just members of marginalized groups, but the nation as a whole. While the U.S. has gutted education systems, healthcare programs, and assistance for the poor, he writes, the nation instead diverted resources to incarcerating people. Porter, who has previously served as economics columnist and editorial writer for the New York Times, joins us to discuss his new book and how it relates to current debate over dismantling systemic racism…”
“After months of negotiations following US President Donald Trump’s pledge to scrap NAFTA, the 24 year old trade agreement between Canada, the USA and Mexico, a new deal was reached minutes before a midnight deadline on September 30, 2018. Despite a number of changes, the new agreement – rechristened the United States-Mexico-Canada Agreement (USMCA) – leaves NAFTA provisions for work visas untouched. The retention of the visa program is significant for workers in over 60 professional categories, and for employers across the continent, who will continue to have access to labor from all three countries..”
“…..”The rebound in jobs has not been shared equally across groups. The unemployment rate for white workers has fallen more than four percentage points over the past two months, to 10.1 percent. For Black workers, the rate has fallen just over one point, to 15.4 percent, and the rate for Black men actually rose in June. Asian workers, too, have seen only small gains. Latinos, hit particularly hard when the pandemic shut down much of the service sector, have had a larger drop in unemployment, but their jobless rate remains elevated at 14.5 percent…”
https://www.nytimes.com/2020/07/02/business/economy/jobs-unemployment-coronavirus.html
“On July 1, 2020, the United States-Mexico-Canada Agreement (“USMCA”) will enter into full force, when it will replace the North American Free Trade Agreement (“NAFTA”) as the primary agreement governing trade relations between the United States, Mexico, and Canada.
President Trump’s April 2017 Buy American, Hire, American executive order threatened to end or severely limit the free trade agreement between the three countries, so its preservation is a victory for businesses and for professionals who qualify for entry under the agreement…”
https://www.jdsupra.com/legalnews/goodbye-nafta-hello-usmca-45841/
“NEW YORK/TOKYO — The new North American free trade agreement that goes into effect Wednesday was touted by U.S. President Donald Trump as an engine of American job creation. But Japan’s automakers are largely opting instead to keep operations in place and pay Mexican workers more or even just pay tariffs.
The US-Mexico-Canada Agreement requires 40% or more of parts for each passenger vehicle be manufactured by workers who are paid at least $16 per hour as a condition to make them tariff free in the region. Trump hailed that feature as a way to boost production in the U.S., which has a higher hourly rate than Mexico…”
“Mexico and the United States are striving to reopen their integrated supply chains while grappling with the COVID-19 pandemic. Mexico is the United States’s biggest trading partner and the U.S. buys about 80 percent of Mexico’s imports.
The two countries, along with Canada, also plan to launch the new North American trade agreement — USMCA — on July 1. That could help the continent’s economies rebound from the pandemic. To maximize the impact on jobs and prosperity, however, USMCA’s launch and reopening supply chains need to be managed well. ..”
“…“Whether his administration realizes it or not, they creating a significant handicap for US innovation. Our most innovative and impactful portfolio companies and many of their employees started as H-1b holders,” wrote Stonly Baptiste, the co-founder of technology investment fund, Urban.us. “We literally couldn’t have built our portfolio in an environment without H-1B. And we’re not even an immigrant focused fund.”
Also on the chopping block are H-2B visas, which are used to let short-term seasonal workers in landscaping and non-farm jobs into the country, J-1 jobs for short-term workers like camp counselors and au pairs and L-1 visas for corporate company transfers…”
“…An irony of the coronavirus pandemic is that the idyllic Mexico beach vacation seen in the brochures really does exist now: The white sand beaches are sparkling clean and empty on the Caribbean coast, the water is clear on the Pacific Coast and the waters around the resort of Los Cabos are teeming with fish after 10 weeks with no boats going out. There are two-for-one deals and very eager staff.
It’s all only an airline flight – and a taxi ride and a reception desk – away, and that’s the problem…”
“…Hispanic women had the highest rate of unemployment in May (19.5%), compared with other women or men among the nation’s major racial and ethnic groups. The unemployment rate among white women jumped nearly fivefold, climbing from 2.5% in February to 11.9% in May. A steep increase in the unemployment rate among Asian women also pushed their unemployment rate in May (16.7%) to near parity with the unemployment rate among black women (17.2%)…”
“…Meanwhile white Americans saw the largest decrease in unemployment of any racial group, going from 14.2% in April to 12.4% in May. Historically, the white unemployment rate is lower than the national unemployment rate, while black unemployment can be nearly twice as high.Hispanic Americans are still seeing the highest unemployment rate of any racial group, with a 17.6% unemployment rate in May, down from 18.9% in April…”
https://www.theguardian.com/business/2020/jun/05/us-unemployment-may-jobs-report-five-key-points
“…Essential cross-border workers like healthcare professionals, airline crews and truck drivers are still permitted to cross. Truck drivers are critical as they move food and medical goods in both directions. Much of Canada’s food supply comes from or via the U.S.”
“..Latino and Asian majority neighborhoods in Los Angeles County are especially economically vulnerable to disruptions caused by COVID-19, a UCLA study found.The study, which was published April 1 by the UCLA Latino Policy and Politics Initiative and the UCLA Center for Neighborhood Knowledge, sought to locate neighborhoods in LA County that are particularly vulnerable to the coronavirus because of their large number of at-risk workers.The researchers identified two sectors of the service workforce – hospitality and retail – that are especially at risk for coronavirus-induced layoffs…”
“As the Latino community grapples with the brunt of the COVID-19 pandemic, including a higher rate of fatalities compared to other populations, the nation’s first in-depth poll of the Latino population in America for 2020 has found that 35% of Latino households have already experienced a job loss, while more than 65% of respondents reported having difficulty buying or finding necessities such as food, household supplies or medicine.
[Poll results here | Slide deck here]
The poll was conducted by Latino Decisions in partnership with SOMOS, the country’s largest physician-led health delivery network. Of SOMOS’s nearly 3,000 physicians and 800,000 patients, nearly all are immigrants or first-generation Americans, and over two-thirds are Latino…”
“The Mexican oil hedge, or the Hacienda Hedge, is considered the biggest hedging bet on Wall Street as well as perhaps the most secretive. It has earned Mexico—and a few large investment banks—billions of U.S. dollars. Mexico buys put options from investment banks and typically hedges a whopping 200-300 million barrels of oil a year. With the put options, it has the right, but not the obligation, to sell oil at a previously set price and timing. But will this tradition continue under the newly elected administration?Throughout his campaign, Mexico’s now president-elect Andres Manuel Lopez Obrador kept the oil industry on edge with comments and promises that he would review the landmark 2013 energy reform of outgoing President Enrique Peña Nieto that ended seven decades of oil monopoly in the country…”
“Hispanics are more likely than Americans overall to say they or someone in their household has experienced a pay cut or lost their job because of the coronavirus outbreak, according to a Pew Research Center survey conducted March 19-24…”
“People at an economic disadvantage are “already not doing so great in a good day, let alone in a rainy day,’’ he said.Jose Ricardo is already bracing to dip into his savings to pay next month’s bills for his mobile home in Chula Vista, California. Ricardo, a waiter at a Japanese restaurant in San Diego, is working only 16 hours a week, down from the usual 32 hours two weeks ago.“I’m really nervous,’’ said Ricardo, 61. “We are used to working hard.”With new restrictions on restaurants to serve takeout only, Richardo no longer has the extra income from tips. He makes $12 an hour.“People pay tips because they get a service. We’re taking care of them,’’ he said. “Now, with takeout, they pick it up and bye-bye.”
Ricardo, who lives with his wife, mother-in-law and two children, said he’s anxiously waiting to see how lawmakers will help him and other workers.
He’s holding out hope. “We will recover for sure,” he said…”
:..Maria J. Martinez is president/CEO of Border FCU, Del Rio, Texas. She’s a founding member of the Network of Latino Credit Unions and Professionals, the 2012 Del Rio Hispanic Chamber of Commerce Business Woman of the Year, a 2015 Woman of Distinction of the Texas Association of Mexican American Chambers of Commerce, Cornerstone Credit Union League’s 2016 Professional of the Year, and a 2017 Herb Wegner Memorial Award for Outstanding Individual Achievement winner. She has been in the credit union industry for almost 32 years…”
https://news.cuna.org/articles/117431-everyone-benefits-from-an-inclusive-work-culture
“With house passage of trade deal, experts are hopeful the USMCA will become a reality in 2020.
Trade experts say supply chain professionals have much to cheer about now that the United States-Mexico-Canada Agreement (USMCA) is closer to becoming a reality. The biggest deal? The agreement’s efforts to address customs administration and trade facilitation, which experts say will go a long way toward streamlining cross-border shipments.
“From beginning to end, it’s the…”
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