GENERAL SITUATION IN MEXICO
Weekly Review I June 18, 2025
US - MEXICO PRESIDENTIAL NEWS
G7 Summit 2025: Key Takeaways
& Geopolitical Tensions
Context & Political Landscape
• Summit Location & Format: Held in Kananaskis, Canada (June 16–17). No joint communiqué issued; thematic declarations were used to avoid public disagreement among leaders.
• Trump’s Early Exit: U.S. President Donald Trump abruptly left the summit to address the Israel–Iran escalation, cancelling scheduled bilateral meetings with Ukraine and Mexico.
• Expanded Participation: Leaders from Mexico, India, Brazil, South Africa, Australia, and Ukraine joined as invited participants to address global issues beyond the G7 core.
Impact on Global Diplomacy & Economic Alliances
• Transatlantic Fractures: Trump’s departure deepened divisions within the G7. European leaders expressed concern over U.S. commitment to collective defense and democratic norms.
• Reintegration Proposals: Trump proposed reintroducing Russia to the G7 and hinted at including China in future forums—challenging the bloc’s post-2014 sanctions consensus.
• Alternative Leadership Efforts: Canada, Germany, and France reinforced bilateral commitments with Ukraine and expanded dialogues with G20 members in Trump’s absence.
Implications for Mexico
• Sheinbaum’s First G7 Appearance: Mexico’s president-elect Claudia Sheinbaum attended for the first time, focusing on migration, remittances, and trade matters.
• No Bilateral with U.S.: The cancelled meeting with Trump limited Mexico’s ability to directly advance its agenda. Nonetheless, Sheinbaum met with Canada’s PM, and leaders from India and Germany.
• Diversification Opportunity: Mexico positioned itself as a reliable partner in multilateral frameworks, emphasizing investment and diplomatic diversification beyond the U.S.
US - MEXICO PRESIDENTIAL NEWS
Security & Trade Policy Outcomes
• Israel–Iran Conflict Takes Center Stage: The summit’s dominant issue. G7 leaders called for a ceasefire and created a technical oversight group to monitor escalation risk.
• Trade & Tariffs: No formal consensus on tariffs. Trump proposed reciprocal tariffs on EU goods; the U.K., Japan, and Canada pursued isolated bilateral trade alignments.
• Critical Minerals & AI: Strategic tech topics like artificial intelligence, cybersecurity, and critical mineral supply chains were discussed with limited binding commitments.
SOURCE: REUTERS
Strategic Outlook
• Leadership Vacuum: The summit highlighted the G7’s waning cohesion and diminishing ability to act as a unified global actor. U.S. disengagement signaled a shift in global influence.
• Global South Emergence: Broader participation points toward a more inclusive G7-like forum, though tangible economic outcomes for emerging economies remain limited.
• Economic Ramifications: Failure to coordinate on trade, technology, and energy could heighten global market volatility and regulatory uncertainty in H2 2025.
LEGISLATIVE CHANGES AND INITIATIVES
PUBLIC SECURITY
• INITIATIVE WITH DRAFT DECREE ENACTING THE NATIONAL GUARD LAW
Presented by: Federal Executive
Objective: Establishes the National Guard as a permanent, professional public security force composed of military personnel with police training and trusted civilians. Defines leadership, recruitment, duties, and administrative responsibilities under the Secretariat of National Defense, ensuring operational control and integration within national security strategies.
Status: 2025-06-09 – Published in the Parliamentary Gazette
NEWS BY STATE
BAJA CALIFORNIA
The official launch of the Baja California Space and Aerospace Cluster (CEA-BC) was held in Mexicali, marking a pivotal moment for the region’s aerospace industry. The event included the swearing-in of its board of directors, who will lead efforts to strengthen the specialized industrial ecosystem. Supported by academia, government, and business leaders, the cluster aims to drive technological innovation, talent development, and attract national and international investment. As the first of its kind in Mexicali, CEA-BC seeks to deepen collaboration between large firms and local suppliers, align academic programs with industry needs, and promote Baja California as a strategic hub in the global aerospace and space sectors. The launch was endorsed by key industry organizations such as FEMIA and the Querétaro Aerocluster.
SOURCE: INDUSTRIAL NEWS BC
NEWS BY STATE
CHIHUAHUA
Conalep and Foxconn have signed a collaboration agreement in Chihuahua to strengthen technical education and boost young talent in key sectors such as semiconductors and electromobility. The partnership will initially benefit 5,000 students from three Conalep campuses in Ciudad Juárez, with plans to expand to the state capital. The agreement includes dual education programs, professional internships, specialized training, and job placement opportunities, aiming to effectively integrate students into the industrial sector. Both institutions emphasized the importance of aligning education with industry needs, reinforcing the state’s commitment to preparing highly skilled talent for strategic industries.
SOURCE: MEXICO INDUSTRY
NUEVO LEON
As co-organizer of the Global Transportation & Innovation (GTI) Summit 2025 in Monterrey, the Nuevo León Automotive Cluster (CLAUT) reaffirmed its commitment to strengthening the local supply chain and driving technological innovation in the automotive sector. The event, held alongside the State Government and Nuevo León 4.0, became Latin America’s top summit for electromobility and smart transportation, hosting over 2,500 B2B meetings between 50+ buyers and nearly 500 suppliers. CLAUT’s leadership emphasized the importance of real business opportunities for local suppliers and highlighted Mexico’s growing role in global tech development. Key moments included BYD’s launch of the DENZA brand and student innovation showcases. CLAUT also underscored Nuevo León’s positioning as a hub for advanced manufacturing and innovation, boosted by investments from global firms like Volvo and Bobcat. Looking ahead, CLAUT will host the Mexico Automotive Forum 2025 in November, continuing efforts to foster collaboration and national content in the industry.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
QUERETARO
Governor Mauricio Kuri of Querétaro stated that no further closures are expected in the state’s automotive sector following Michelin’s announcement to shut down its plant in Querétaro by the end of 2025. The closure, which will affect 480 workers, was attributed to a global shift in demand toward larger, more technologically advanced tires, making the Querétaro plant less viable. Despite the closure, Michelin will continue operations at its more modern facility in León, Guanajuato, and retain its corporate offices in Querétaro. Kuri emphasized that Querétaro remains an attractive destination for investment and that his administration is working to support affected workers and maintain confidence in the state’s strong automotive industry.
SOURCE: LIDER EMPRESARIAL
NEWS BY STATE
CDMX
Mexico City is preparing to host the 2026 FIFA World Cup with a historic investment of over $6 billion pesos in infrastructure, mobility, security, and lighting, particularly around Banorte Stadium, which will host five matches, including the opening ceremony. Head of Government Clara Brugada unveiled the official countdown clock and announced 16 free soccer festivals, one per borough, and cultural events like the FIFA Fan Festival in the Zócalo. The city also plans a 48-kilometer LED-lit route through the Historic Center and a new bike path. Emphasizing inclusivity, Brugada pledged a World Cup free from discrimination. The stadium will receive a $3 billion peso private renovation, becoming the only venue to host three World Cup openers. FIFA officials praised the city’s coordination, highlighting the broader impact of the event. Mexico City aims to be the heart of Latin America’s World Cup celebration, blending tradition, innovation, and community spirit.
SOURCE: EL MEXICANO
STATE OF MEXICO
The Asociación de Desarrolladores Inmobiliarios (ADI) announced a historic $3.7 billion USD investment in the State of Mexico, aimed at launching 48 construction projects across 19 municipalities, including Naucalpan, Cuautitlán Izcalli, and Huixquilucan. This initiative is expected to create over 150,000 jobs, significantly boosting the state’s economy and improving citizens’ quality of life. Governor Delfina Gómez emphasized the collaboration between the state and private sector, aligning with national goals set by President Claudia Sheinbaum’s Plan México to attract and retain investment. From September 2023 to March 2025, over 121,000 jobs have already been created under Gómez’s administration. The new projects aim to promote equitable growth and economic diversification in the region. State officials highlighted that the State of Mexico ranks second nationally in foreign direct investment, reinforcing its competitiveness. ADI leaders praised the government’s openness and support, which fosters investor confidence and strengthens partnerships for sustainable economic development.
SOURCE: CENTRO URBANO
INVESTMENT NEWS
NORTHERN MEXICO
HENGLI
With an investment of USD 325 million, Chinese company Hengli Hydraulics launched its first manufacturing facility in Mexico, located in Santa Catarina, Nuevo León. The project will be executed in three phases and is expected to generate a total of 800 direct jobs, positioning the company as a strategic new player within the industrial ecosystem of northern Mexico.
CENTRAL MEXICO
KELLANOVA
Kellanova has launched operations at its first Pringles manufacturing facility located in Querétaro, backed by a projected investment of USD 660 million between 2023 and 2025. The initial phase of the project will generate 300 direct jobs.
TOKAI KOGYO
Japanese company Tokai Kogyo, announced an investment of USD 5.2 million dollars to expand its production lines in Aguascalientes. This initiative underscores the company’s commitment to strengthening its operational capacity in Mexico and contributing to the growth of the automotive industry in the region.
AZTEMA
Aztema, a Mexico–China joint venture between Sailun Tire and Tire Direct, has launched a $400 million fully automated tire plant in Irapuato, Guanajuato. The facility, which produced its first tire in May 2025, will manufacture 6 million radial tires annually and create around 1,400 jobs. This marks the first Mexico–China tire plant in the country, strengthening Guanajuato’s position in the global tire industry.
SOURCES: MEXICO INDUSTRY, LIDER EMPRESARIAL , CLUSTER INDUSTRIAL
PRODENSA INSIGHTS
WHAT CANADA’S NEW PRIME MINISTER SHOULD KNOW ABOUT DOING BUSINESS IN MEXICO
As Canada’s new leadership looks to strengthen economic ties, understanding the dynamics of doing business in Mexico is more important than ever. This letter written by Emilio Cadena (Prodensa’s CEO) outlines key insights for policymakers and investors—from Mexico’s competitive manufacturing ecosystem and nearshoring momentum to regulatory frameworks like the IMMEX program. It emphasizes the importance of regional cooperation under the USMCA and highlights areas where Canadian companies can expand their footprint. A timely read for decision-makers exploring cross-border opportunities in an increasingly integrated North American economy.
THE AEROSPACE INDUSTRY IN MEXICO
[UPDATED FOR 2025]
Mexico’s aerospace industry continues to gain altitude, evolving from basic component production to advanced systems like aerostructures, avionics, and propulsion. This blog highlights the latest developments, including regional investment trends, workforce specialization, and Mexico’s growing role in global supply chains. With over 350 aerospace companies operating in the country, Mexico is now a key hub for innovation and nearshoring. The update also explores how free trade agreements and proximity to the U.S. make Mexico a strategic location for aerospace manufacturers aiming to scale.