Today, July 24, we commemorate and celebrate at VAHG International Tequila Day, an emblematic beverage that is a benchmark of tradition in Mexico. Likewise, we celebrate the majestic agave landscape and the old industrial facilities of Tequila, which emerged from the inscription in UNESCO as World Heritage of Humanity in the category of Cultural and Natural Heritage in 2006. Today, agave cultivation is considered an intrinsic element of Mexican national identity.

The Tequila Denomination of Origin (DOT) is a distinctive mark that guarantees the quality and authenticity of this Mexican flagship beverage, representing the production with the standards determined in a differentiated and delimited region. The Appellation of Origin Tequila is celebrating 50 years and the recognition for five Mexican states where Tequila can be produced. These areas are located in 181 municipalities distributed in 5 States of the Mexican Republic: Jalisco in its 125 municipalities, Michoacán with 30 of its municipalities, 7 municipalities for Guanajuato, Nayarit with 8 of its municipalities and Tamaulipas with 11 of its municipalities.

The Tequila Regulatory Council (“CRT”) is positioned as a reference institution for knowledge and the main source of information and services for the entire Agave Tequila chain. Its mission is to guarantee the consumer the authenticity of this emblematic beverage of our country by demonstrating compliance with the Official Mexican Standards applicable to Tequila, safeguarding the Denomination of Origin, both in Mexico and abroad.

“To speak of Tequila is to speak of Mexico”, an emblematic phrase of Miguel Ángel Domínguez Morales, President of the Tequila Regulatory Council.

The Tequila Regulatory Council (“CRT”) is approved by the General Directorate of Standards of the Ministry of Economy and is accredited by the Mexican Accreditation Entity A.C. to perform its functions as an Inspection Unit, Testing Laboratory and as a Greenhouse Gas Certification and Verification agencies.

It is worth noting that in 2016, the CRT, together with the Mario Molina Center and the Tequila Agroindustry, presented its Sustainability Strategy for the Agave Tequila Chain. To achieve the established goals, different lines of action were positioned to strengthen the chain, which are aligned with 16 of the 17 Sustainable Development Goals of the United Nations (UN). The lines of action contemplated are: Decarbonization of the industry, efficient use of water, sustainable agricultural practices, the Zero Deforestation Tequila Program, waste treatment, strengthening of social programs and economic development of the region.

In addition, the CRT was elected on February 2, 2023 as representative of the Board of Associations of the Business Climate Alliance of Jalisco for the period 2023, being re-elected for one more period (2024). The CRT’s goal is to combine the efforts and needs of the industrial sector of Jalisco through the associations adhered to the Alliance, with the purpose of transitioning its members to a low-carbon economy.

The Tequila Regulatory Council (“CRT”), in coordination with the National Chamber of the Tequila Industry, created the “Distinctive T” in 2003 with the purpose of increasing the quality of the products offered by restaurants, bars, discotheques, hotels, distribution and consumption centers. By means of this distinctive, the participation of the employees of these establishments is motivated as adjuvant agents in the Tequila culture, the safeguarding of the Appellation of Origin, as well as guiding the consumer in the appreciation of the quality and tasting characteristics.

At VAHG we offer tailor-made legal services to all our clients with great experience and expertise in Intellectual Property and Corporate Law – Mergers and Acquisitions, being leaders in the Tequila Industry, backed by 30 years of experience. We focus on assisting our clients at all times with the commitment and integration in the legal framework of the Tequila Industry.

We are very proud as a Firm to represent the Tequila Regulatory Council (“CRT”) and to be part of that wonderful team of professionals that safeguard the first and most important Appellation of Origin in Mexico.

For more information regarding the Appellation of Origin Tequila and our legal services related to it, the VAHG team.

Martín Arias Cuevas | Associate

Intellectual Property

+52 (33) 38171731 Ext. 236 | ariascuevas@vahg.mx

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.

Today, international migration has become a phenomenon of great magnitude in Mexico. Between January and May 2024, the country registered 1.3 million immigrants in an irregular migratory situation, coming from 177 countries, whose main purpose is to reach the border with the United States. This migratory flow has reached unprecedented levels of saturation, according to information obtained from El Economista.

Irregular migration in Mexico has experienced a significant increase, tripling in the first quarter of the year and reaching almost 360,000 people, despite increased governmental operations. According to statistics from the National Migration Institute (INM) for the year 2024, 83,066 migrants have been oriented, 349 have been rescued, and 38,293 people have been provided with social assistance. Additionally, 259 undocumented foreigners have been deported, while 8,103 have been returned through assisted return procedures.

On the other hand, the emigration of Mexicans to other countries increased 58% to a total of 1.2 million emigrants in the last five years, of which 87.9% went to the United States, 6% went to Canada, 1.3% to Spain, 0.7% to Germany and 4.1% to the rest of the world, according to information obtained from Forbes Mexico.

VAHG Attorneys have extensive experience in the practice of Immigration Law and provide effective legal solutions before the Ministry of the Interior through its agencies such as the National Institute of Migration and the Ministry of Foreign Affairs in immigration matters, advising our clients at all times and protecting their rights and interests. Likewise, we provide the best legal advice and accompaniment for all possible situations of our migrant clients in their stay in any country, guiding them at all times, with visible results in the short term, thanks to our strategic alliances and the international networks of which we are part of.

In accordance with applicable Mexican law, it is possible to appoint Directors or Managers of foreign nationality to represent companies incorporated in Mexico. At the time of appointment, the foreign person must have a regular immigration status in Mexico. At VAHG we advise companies that have foreign employees and officers in the compliance of their immigration and labor obligations, as well as in obtaining or updating the Employer Registration Certificate, along with the processing of visas and documentation for temporary or permanent residence for our clients and their families. We also advise our clients in obtaining visas for business and investment, resolving any immigration situation that may arise.

Our Immigration Practice Attorneys at VAHG help to promote foreign investment, where our foreign clients can participate in the capital stock of Mexican companies, either to acquire fixed assets, enter into new fields of economic activity, as well as to open and operate establishments by expanding or relocating existing ones; according to our legislation all Mexican companies can be constituted by national or foreign shareholders or partners.

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.

VAHG welcomes Luis Andrés Estrada Intriago – Senior Associate of the Corporate, Immigration, Commercial and Contract Law Practices. He also has experience in Intellectual Property, Commercial Litigation and Dispute Resolution.

We are very excited with the addition of Luis Andrés to our team, as his experience and skills will be a valuable addition to VAHG. We are confident that his talent and track record will help us achieve the transcendental goals to which we have always aspired.

Luis Andrés obtained his Law Degree (JD) from the Instituto Tecnológico y de Estudios Superiores de Occidente (ITESO). He has an outstanding career, where he has obtained significant academic achievements, including his participation in specialized courses and diplomas offered by renowned institutions such as the Mexican Institute of Intellectual Property (IMPI), Lawgic Lessons and the Casa de la Cultura Jurídica de la Suprema Corte de Justicia de la Nación (House of Legal Culture of the Supreme Court of Justice of the Nation). Luis Andrés has participated in international events such as the World Legal Operations Summit in Berlin, Germany. He is currently pursuing a Specialization Diploma in Legal English at the Universidad Anáhuac.

At VAHG we stand for the protection and preservation of the environment for a greener and more prosperous future. We have a culture of sustainability and we transmit these social values to all members of the Firm by celebrating the International Recycling Day through our commitment to corporate social responsibility.

In Mexico, recycling has become an increasingly important issue in all industries. At the end of November 2023, the signatories of the National Agreement for the New Plastics Economy in Mexico was presented to the Mexican Senate along with their fourth progress report on the implementation of a circular economy of solutions to plastic pollution, which have exceeded expectations, highlighting the elimination of 60 thousand tons of unnecessary plastics per year, totalling more than 200 thousand tons in the last four years.

On a global scale, the urgency to address plastic pollution has led to a series of policies, laws and regulations. Our country has been no exception promoting the issue of circular economy, which has been reflected in legislative matters; while working on the signing of the National Agreement for the New Plastics Economy in 2019, the minutes or laws began to take shape, such as the General Law of Circular Economy and reforms to the General Law for the Prevention and Integral Management of Waste, still pending in the Chamber of Deputies.

The measures in Sustainability Practices implemented by VAHG related to the environment are aimed at favoring paperless communication in our Firm and promoting practices for the reuse of materials. We support the shift towards renewable energies, minimizing waste and support for the recycling and recovery of plastic waste. As a Firm, we reduced plastic and paper consumption as much as possible. We have increased the digitalization of some processes to reduce the amount of paper consumption, such as the reuse and separation containers for organic and inorganic waste. Recycling is incorporated into our day-to-day operations, as well as reducing the use of plastic bags. We also have a recycling container for batteries, which has been used continuously by everyone at VAHG.

Fernando Hernández de la Torre has been appointed Associate at VAHG, effective as of April 8, 2024. Fernando has excelled in Mergers and Acquisitions and in Corporate Law.

Fernando Hernández de la Torre is an Associate at VAHG and specializes in the practice of Corporate Law and Mergers and Acquisitions. He has transactional experience in the review and drafting of all types of contracts and meetings, as well as advising domestic and foreign clients in the incorporation of new companies, corporate restructurings, privatizations, purchase and sale of companies in various industries, foreign investment and joint ventures. In addition, his practice also focuses on corporate resolutions, maintenance and reorganization of corporations, as well as the negotiation of sophisticated business transactions.

Fernando has participated as legal advisor in cross-border transactions in order to support our clients in projecting the best business plan for them, in the implementation of the best legal strategies.

Fernando obtained his law degree from Universidad Panamericana, Campus Guadalajara, in 2022. In addition, he also obtained a postgraduate degree in Contracts and Obligations from the same University.

Martín Arias Cuevas has been appointed Associate at VAHG, effective as of April 5, 2024. Martín has excelled in the Intellectual Property Practice.

Martín Arias Cuevas is an Associate at VAHG, in the Intellectual Property Practice Area, where he specializes the planning and regularly advising domestic and foreign clients on strategies for the protection of Industrial and Intellectual Property rights, such as trademarks, copyrights, registration of distinctive signs, registration of trademark assignment and license agreements, processing of trademark applications, collective management societies, appellations of origin and geographical indications, and handling of proceedings before different intellectual property offices including Mexico, the United States and others around the world, procedures before collective management societies, appellations of origin and geographical indications, and management of procedures before different intellectual property offices including Mexico, the United States and other countries in the world, as well as actions to prevent violations of intellectual property rights, protecting and ensuring the preservation of our clients’ rights.

Martín obtained his Law Degree (JD) from Universidad Panamericana, Campus Guadalajara, in 2022.

In addition, he is currently pursuing a Master’s Degree (LL.M.) in Industrial Property, Copyrights and New Technologies from Universidad Panamericana, Aguascalientes Campus, in 2022. He holds a Degree Certificate for Corporate Lawyers of ANADE on Intellectual Property matters within the framework of the XXV Diploma, in 2023, Jalisco Chapter.

The declaration of the list of partners, shareholders or associates residing abroad of legal entities residing in Mexico that choose not to register in the Federal Taxpayers Registry (RFC), in accordance with the fourth paragraph of Article 27 of the Federal Tax Code, must be filed within the first three months following the end of each fiscal year.

The form must contain a list of the partners, shareholders or associates residing abroad, indicating their domicile, tax residence and tax identification number. This information must be submitted before the Tax Administration Service (SAT) Portal.

The tax obligation of Mexican corporations referred to in this article must be filed no later than the last business day of March 2024.

The process will be considered as submitted when the information complies with the above and is contained exclusively in the official form 96, so it will not be necessary to wait for a response from the tax authority, only if inconsistencies are detected in the information, this will be informed through the page of the SAT for correction.

In VAHG we provide support to advise our clients on tax matters in a timely manner. In case you require additional information or if you would like VAHG to review the particular implications for your company, please contact our lawyers mentioned below:

                                        Elvia Ríos Saldaña | Socia

                                        +52 (33) 38171731 Ext 228 | erios@vahg.mx

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document refers to laws applicable in Mexico.

Ana Karen Inzunza Sánchez has been appointed Partner at VAHG, effective as of March 20, 2024, as Practice Leader in Corporate and Real Estate.

During the last few years, Ana Karen has served as Senior Associate in the representation of domestic and foreign clients in the incorporation, maintenance and reorganization of commercial companies, as well as in the preparation, review and implementation of various types of commercial contracts and the negotiable instruments deriving from business. Ana Karen has extensive experience in the coordination of the different areas of law that are necessary to implement cross-border transactions and corporate restructuring projects, including the coordination of lawyers in different jurisdictions, mainly in mergers and acquisitions of commercial companies where foreign investment predominates, joint ventures and strategic alliances, acquisitions, mergers and spin-offs.

As part of the team, she also focuses on real estate matters that involve advising foreign clients in implementing the most efficient legal and economic strategies to make important investments in Mexico, as well as in the acquisition and sale of real estate assets, development and operation of real estate projects, and real estate investment trusts.

She obtained her Law Degree from Universidad Panamericana, Campus Guadalajara in 2016 and has a Master’s Degree in Commercial and Business Law from the same university in 2019.

Ana Karen has a certification from the Mexican Bar Association & Universidad Panamericana Campus Guadalajara, in 2022, where she participated in the Corporate Business Seminar;

She was part of the team that represented Universidad Panamericana in the 13th Willem C. Vis (East) Moot, International Commercial Arbitration Moot, in Hong Kong, an Arbitration competition in 2016 (Honorable Mention for Best Statement of Defense).

She holds a Diploma in English Legal Methods, University Program from the University of Cambridge, England, in 2015. In addition, as part of her extracurricular activities, Ana Karen is part of the Staff of Arbitrators for the preparation of the teams that represent Universidad Panamericana Campus Guadalajara in the Inter-University Competition of Commercial and Investment Arbitration (UP – ICC Mexico Moot).

Currently Mexico has positioned itself as one of the most active M&A countries in Latin America thanks to nearshoring, which has triggered a scenario that reflects a 20% increase in M&A at the corporate level in our country at the beginning of 2024.

According to Forbes Mexico, the outlook for this year looks very favorable in comparison to 2023 in relation to the raising of capital and debt mainly driven by the United States–Mexico–Canada Agreement “USMCA” and nearshoring. The industries that will benefit in the next two years are transportation, manufacturing, logistics, technology, financial services, construction and real estate.

In this sense, the trade conflict between the United States and China continues, which will continue to benefit us with the relocation of companies to Mexico, generating demand in the aforementioned industries.

In terms of cross-border transactions, in the first month of 2024, Mexican companies invested in the United States and Colombia. Meanwhile, Spain has made acquisitions in Mexico. In asset acquisitions, 55 transactions have been registered, representing an 8% increase year-on-year terms.

Likewise, the Latin American transactional market has recorded 151 mergers and acquisitions, both announced and closed, for an aggregate amount of USD$2,248 million since January. These figures imply a decrease of 32% in the number of transactions and 10% in their amount, compared to January 2023. In Mexico, 19 transactions were announced in February 2024, representing an increase of 9 transactions over the previous month. Compared to the same period last year, volume increased by 6 transactions.

According to data recorded by TTR Data, during the month of January, Brazil led the ranking as one of the most active countries in the region by number of transactions, with 103, representing a 26% decrease in operations and a decrease of 11% in the mobilized capital in regards to January 2023. It is followed by Chile, with 13 transactions, representing a 61% decrease in operations and a 69% decrease in amount (US$ 77 million) compared to January 2023. In the case of Colombia, it rises in the ranking with 12 transactions, which represents a decrease of 40% at the beginning of 2024, reflecting an increase of 4,174% in the mobilized capital of USD $465 million.

Argentina decreased its activity and recorded 5 transactions with a 44% decrease and a 227% increase in amount (USD$50 million), making Mexico, together with Colombia, the only ones in the market with positive figures. In last place is Peru with 6 transactions, presenting a decrease of 14% and a 91% drop in its mobilized capital for the equivalent of USD$14 million.

Mexico, in the real estate sector, led M&A activity with 8 transactions announced as of February 2024, representing 27.6% of total transactions announced as of February 2024, representing 27.6% of total transactions during the year. This is followed by the industrial and consumer products sectors, with 2 transactions of Mexican companies announced abroad, representing 25.0% of the total number of transactions during the period, the most significant being the acquisition of the Uruguayan company Pagnifique by the Mexican company Bimbo, according to Seal Associates.

In conclusion, we believe that as a result of global trade tensions, Latin America is favoring new M&A operations, especially Mexico because of its strategic location with the United States and its infrastructure in the distribution and marketing of products covering various industries, many transnational companies are coming to establish themselves in our country so far this year 2024.

In VAHG we provide legal services with great experience in Mergers and Acquisitions, being leaders in this practice in Mexico. We are backed by a solid legal infrastructure with more than 30 years of combined experience, focused on timely assisting our clients with the commitment and integration in the legal framework of Mergers and Acquisitions.

For more information regarding our professional services, our lawyers in the Mergers and Acquisitions Practice are at your service.

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document refers to laws applicable in Mexico.

On October 6, 2023, the Secretary of Economic Development and Labor of the State of Morelos filed before the Mexican Institute of Industrial Property (“IMPI“), the application for protection of Gabanes de Hueyapan, Morelos as a Geographical Indication, to which after a few months of examination, today, February 29, 2024, was published in the Official Gazette of the Federation the Declaration of Protection of the Geographical Indication Gabanes de Hueyapan, Morelos.

This Declaration of Protection entails that the origin of this type of traditional garment consisting of a wool fabric will be attributed exclusively to the Municipality of Hueyapan, which is an indigenous community located at the foothills of the Popocatépetl Volcano, which was recently incorporated into the state of Morelos in December 2017.

The protection of this product represents a great pride for the people of Hueyapan, since it means the recognition of a valuable production process totally artisanal and traditional of the zone, from the job of obtaining the sheep wool, the elaboration of the threads, the dyeing, which mainly uses plants and insects, to the weaving with a waist loom, characteristic of these gabanes.

In accordance with the Federal Law for the Protection of Industrial Property, a Geographical Indication (“GI“) is understood as the recognition of: i. A geographical area that serves to designate a product as originating therein; ii. A reference indicating a product as originating therein; or iii. A combination of the name of a product and a geographical area. Provided that certain quality, characteristics or reputation of the product are attributed to the geographical origin of any of the following: raw materials, production processes or natural and cultural factors.

Sometimes it may be difficult to differentiate a GI from an Appellation of Origin (“AO“), since they are both legal concepts oriented to protect products of certain qualities that come from certain geographical areas as long as the quality is attributable to the geographical area from which they come, however, the AO is more stringent, since it needs to comply with all the requirements listed in the previous paragraph, while the GI can comply only with one of the three requirements mentioned above.

In Mexico, 16 applications have been filed to protect products as Geographical Indications, however, only 5 of them have received such protection: Cajeta de Celaya, Tallas de Madera (Wood Carvings): Tonas and Nahuales from the Valles Centrales de Oaxaca, Seda (Silk) de Cajonos, Tapetes de Teotitlán and, as of today, Gabanes de Huayapan.

It is important to remember that the holder of the rights over the AO’s and IG’s in Mexico is the Mexican Republic itself, and it is IMPI the one in charge of authorizing the use of such rights. Furthermore, IMPI is empowered to exercise the protection and defense actions of the AO’s and IG’s, although it can delegate these tasks to a third party, such as a Regulatory Council.

In VAHG we provide support and advice on the protection of AO’s and IG’s, as well as for individuals to legally participate in the industry of products protected by a Appellation of Origin or Geographical Indication. In case you are interested in this area, please contact our team or one of the lawyers mentioned below:

**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document refers to laws applicable in Mexico.