The Federal Government has just published, in the Official Gazette of the Federation, an agreement issued by the Ministry of Health adopting certain measures to mitigate and control the health risks caused by the COVID-19 disease, which could cause severe disruptions to the operations of a large number of companies whose activities are not considered necessary to address the health contingency.
It is important to analyze whether or not each company’s activities may qualify as necessary for such purpose, which will depend on each specific case. This is because, among the measures adopted, all private-sector companies are ordered to temporarily suspend their activities —whatever they may be— whenever they involve a physical concentration of individuals or the transit or movement of persons, from today, March 24, until April 19, 2020. Thus, only the lines of business necessary to address the contingency may continue operating, among which the following are listed, by way of example: hospitals, clinics, pharmacies, laboratories, medical services, financial services, telecommunications, information media, hotel and restaurant services, gas stations, markets, supermarkets, convenience stores, and gas transportation and distribution services. From a preliminary review of the Agreement, we conclude that its wording is ambiguous and that its scope will need to be clarified by the authorities in the coming hours, but it is undeniable that it will have significant operational and business impacts. In light of this situation, we do not rule out the possibility that the Mexican government may later decide to make modifications or adjustments that allow business continuity in Mexico. At Von Wobeser y Sierra, S.C. we will continue to analyze this Agreement in detail in the coming hours and will monitor the authorities’ rulings to determine their possible impacts on our clients’ activities. For additional information, contact our experts: Luis Burgueño, Partner: +52 (55) 5258 1003 | lburgueno@vwys.com.mx Rodolfo Trampe, Partner: +52 (55) 5258 1054 | rtrampe@vwys.com.mx Luis Miguel Jiménez, Partner: +52 (55) 5258 1058 | lmjimenez@vwys.com.mx
