On November 1, the Mexican government issued orders in its Official Gazette to all government agencies to suspend for three months all business dealings with Federal Express (FedEx). The suspension includes all states and municipalities within Mexico, a nation with 32 states and more than 3,700 municipalities or counties.
The government gave no reason for the suspension against Federal Express Holdings Mexico, FedEx’s official name in the country. Contracts already awarded to FedEx will be respected. According to a statement from the government’s Secretariat of Public Functions, the express delivery company did not comply with agreed contracts, hence the suspension.
"The circular published by the Ministry of Public Function within the Official Journal of the Federation, is a result of a bidding process in which FedEx Express participated," according to FedEx spokesperson Sally D. Davenport. "This sanction is suspended and in no shape or form does it impact the company’s ongoing operations."
"This matter does not represent any non-fulfillment from the company," she continues. "The situation is due to a mere matter of procedure and interpretation of the information provided by FedEx in the bidding, information that is currently being clarified."
FedEx is appealing the “provisional,” three month suspension. FedEx in Mexico has 275,000 employees, annually handling $32 billion in shipments.