Lopez Obrador Says Reopening Must Be “Gradual, Orderly, and Cautious”
Essential activities like economic, social, and educational events now include mining and construction, according to the health committee.
About 80% of Mexico exports are sent to markets in the U.S., which became its biggest trade partner in 2019. Most of the industries in Mexico that accounted for the commerce worth over $600 billion were involved in automotive parts.
Lopez Obrador said the industries and the organizations must be "gradual, orderly, and cautious" with the reopening as they must still comply with health measures.
Automotive businesses to back up new normality
"[The economy] is not going to return to normal because there have been changes," the president said at a news briefing.
Part of the plan involves a coding system that informs Mexicans which businesses are reopening, which Lopez Obrador called the "traffic light" scheme, where red is meant for establishments with strict measures and green for regular operations.
Based on studies by officials in the Mexican government, mechanized industries can help the country control the pandemic. Specifically, the Tecnologico de Monterrey University published research that proved states with automotive operations like Guanajuato and San Luis Potosi reported fewer cases than the country's average.
As of yet, authorities are coordinating with the United States to regain economic leverage. The anonymous official said, "We want to reopen with the United States."
Federal authorities report that automotive factories are now able to reopen as soon as May 18 because the production of the parts is now considered an essential activity. Analysts now predict that the gross domestic product may contract as much as 10% this year, as opposed to the estimated 6% the month prior.
Coronavirus hotspots in the country are expected to reopen businesses and resume activities at a later date, as easing restrictions may result in a second wave.
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Government's growing concerns
Many experts say that the government efforts are more pooled into the economy rather than the healthcare systems. As Tony Payan might put it, Lopez Obrador's priority is "to protect Mexico's economic performance."
The director of the Center for the United States and Mexico added local authorities decided to take matters into their own hands. This resulted in uncoordinated mitigation measures that were not financially supported by the federal government, and thus data for these communities remained insufficient.
Other analysts expect that Mexico may be experiencing a public health crisis on top of an economic crisis during the pandemic. Lopez Obrador's solution, which is to reboot the economy by relying on manufacturing and trade industries, may not be enough.
"Mexico is integrated in the global economy," member of the Wilson Center Eric Olson said in an interview. He said it was unlikely that the country would immediately bounce back to regular operations after the pandemic, even with the government planning to reopen businesses with the new normality.
Olson added that Lopez Obrador might not be convinced that Mexico was as vulnerable to the pandemic as much as other countries like the U.S., China, and Italy were. This could explain the uncoordinated responses of local authorities to alleviate the spread in their respective cities and communities.