News Article

Spain’s Quarantine Threatens Mexico-Spain Economic Relationship

By Daniel González | Wed, 05/13/2020 - 14:00

The historical economic relationship Spain and Mexico have had since the 16th century has been endangered by the COVID-19. Yesterday, the Government of Spain approved a Royal Decree that forces all foreigners visiting Spain to spend 14 days in mandatory quarantine. The measure, which is particularly harsh on tourism, also has economic and commercial implications, especially for the two countries that have been economic allies for centuries. Mexican businessmen or executives who want to resume their company’s economic activity in Spain must wait 14 days to do so.

According to data from the Ministry of Economy, in 2019 Spain was the second country with more foreign direct investment (FDI) in Mexico, only surpassed by the US. Germany  ranked third. In addition, Spanish banks Banco Santander and BBVA, represent 36.1 percent of Mexico’s financial assets, according to data from the National Banking and Securities Commission (CNBV). Unlike what happened in past times, today’s relationship between both countries is bidirectional. In 2019, Mexico displaced Brazil and became the Latin American country that most invested in Spain. “Mexico has a large number of highly competitive companies, something that is not so common in the rest of Latin American countries. In addition, the historical and cultural links help,” Adrián Blanco, Head of Latin American Studies at Icex-Invest, a public entity under the Spanish Ministry of Industry, Trade and Tourism, told France 24.

The measure promoted by Spain will be enforced while the state of emergency implemented by the country lasts, as the country manages to control the expansion curve of the virus, explained Salvador Illa, Spain’s Minister of Health. Travelers will have to stay in hotels or residences. The Spanish government will also be able to monitor the movements of these travelers if necessary. Only carriers, airline crews and health workers are exempt from this measure. Travel agencies and airlines are forced to inform travelers of this measure at the time they make their ticket purchases to Spain.

On May 8, Aeroméxico updated its list of flights to Europe and other international destinations. The Mexican company suspended its flights to Barcelona until May 31. Nevertheless, it plans to maintain a weekly flight to Madrid until May 31. On that day, the country’s largest airline will again update the list of its international destinations from Mexico City.

The data used in this article was sourced from:  
La Vanguardia, CNBV, France 24, ICEX, Forbes, EFE
Daniel González Daniel González Senior Writer