COVID-19 Mexico: Baja California Orders Temporary Closure of Maquiladoras

COVID-19 Legal Updates COVID-19 Mexico: Baja California Orders Temporary Closure of Maquiladoras Juan Zúñiga · April 27, 2020

The Secretary-General of the State of Baja California, Amador Rodriguez, ordered the temporary closure of all maquiladoras[1] as of April 16, 2020. The Secretary-General explained that this measure was taken after many companies continued operations, despite not being considered “essential” activities as defined in the order promulgated by Mexican Ministry of Health on March 30, 2020.[2]

The Secretary-General decreed that following the closure of all maquiladoras in Baja California, a company may submit a request to the Ministry of Labor to reopen its facilities. If the company can show that the activities performed in the facility are “essential”, then the Ministry of Labor will allow its reopening.  All other companies will not be allowed to reopen until Mexico’s COVID-19 measures are lifted.

The Secretary-General has stated that there will be legal consequences for those companies that continue to operate without abiding by this order. He further stated that inspectors of the Federal Commission for Protection Against Sanitary Risks (COFEPRIS) will begin to sanction such companies.

[1] A maquiladora is a manufacturing plant or factory established in Mexico, that assembles, processes or manufactures products for export.

[2] See article on the Ministry of Health’s Order here.

Juan E. Zúñiga is an international transactions attorney who has worked on cross-border deals throughout the United States, Latin America and in over 60 other countries. His practice is focused on buying and selling real estate, resort and hospitality transactions, mergers & acquisitions, overseas distribution agreements, international joint ventures, foreign trade and commerce, workouts of distressed assets, lending and investment issues. He has been particularly sought out for his handling of cross-border transactions, especially in Latin America. In this work, he represents American clients in their investments in overseas properties and in establishing subsidiary operations internationally. Additionally, he represents foreign clients in their investments in the United States. Read more about Juan here.

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