• BREWERY: The Mexican government confirmed Monday that it will halt the construction of a giant USD 1.4 billion Constellation Brands brewery in the US-Mexico border city of Mexicali after water rights activists won a non-binding plebiscite vigorously denounced by the private sector.
• GOVERNMENT: “As a result of this, (Mexico’s National Water Commission) will no longer give the corresponding permits that were pending for the operation of the plant”, said Diana Álvarez, Mexico’s deputy minister of government. Alvarez said plebiscite results were 76% against and 23% in favor.
• REJECTION: The non-binding poll that attracted a total of 36,000 voters in Mexicali (pop. 1 million) was heavily criticized by business groups, as an illegal exercise against a company such as Constellation Brands, which had acquired all necessary permits and that would have brought thousands of jobs.
• INSTABILITY: “This plebiscite undermines Mexico’s ability to attract investment, and increases the economic risk we face due to the instability of financial markets, the price of oil and the international upheaval caused by the Covid-19 pandemic”, said the CCE, Mexico’s largest business lobby.
