GENERAL SITUATION IN MEXICO
Weekly Review I November 5, 2025
US - MEXICO PRESIDENTIAL NEWS
Security Cooperation
• The assassination of Uruapan Mayor Carlos Manzo during Day of the Dead festivities has triggered national protests and reignited debate over Mexico’s security policy, highlighting escalating violence against local officials.
• While the National Conference of Governors (Conago) expressed support for President Claudia Sheinbaum, opposition parties accused the federal government of failing to contain organized crime, framing the incident as evidence of state weakness.
• In response to the killing, U.S. Deputy Secretary of State Christopher Landau offered expanded bilateral cooperation against organized crime, and Security Secretary Omar García Harfuch affirmed Mexico’s openness to information-sharing with foreign agencies.
• Meanwhile, NBC News reported that President Donald Trump is planning a mission involving U.S. troops and intelligence officers to target Mexican drug cartels, prompting President Sheinbaum to reject any foreign military deployment in Mexico.
• Sheinbaum reaffirmed that bilateral cooperation must remain grounded in respect for sovereignty and coordination, not intervention, as Mexico faces growing domestic and international pressure to deliver concrete security outcomes.
SOURCES: EL FINANCIERO
USMCA Negotiation Processes
• The public consultation process on the USMCA review has concluded in the United States and Canada, while Mexico’s national consultation phase is nearing completion.
• The trilateral consultations, launched simultaneously on September 17, have gathered extensive input from business groups, labor unions, academics, and civil society across all three countries.
• The U.S. Trade Representative (USTR) reported receiving about 1,514 written submissions and 172 requests to participate in the November 17 public hearing in Washington.
• In Mexico, more than 28 state consultations have been held, along with numerous electronic submissions addressing issues such as U.S. Section 232 tariffs, agricultural subsidies, and the asymmetric application of the Rapid Response Labor Mechanism.
• Canada’s Global Affairs department is conducting its second round of public consultations, with hearings before the House of Commons’ International Trade Committee, including testimony from chambers of commerce and industry associations.
• The parallel and extensive consultations across North America mark a coordinated effort to prepare each country’s position ahead of the 2026 USMCA review, emphasizing inclusiveness and transparency in the renegotiation process.
SOURCES: EL UNIVERSAL
US - MEXICO PRESIDENTIAL NEWS
Foreign Trade and Tariffs
• Mexico’s Chamber of Deputies is preparing to vote in late November or early December on a reform to the General Import and Export Tax Law (LIGIE) that would raise tariffs on 1,463 product classifications from countries without free trade agreements. The measure is expected to pass before the December 15 legislative recess.
• The proposal reflects growing pressure from Mexican manufacturers seeking protection from Chinese imports amid escalating global trade tensions following recent U.S.–China negotiations.
• In the U.S., over 200 CEOs from the Business Roundtable urged President Trump to lift Section 232 and IEEPA tariffs on Mexico and Canada, warning that they undermine North American supply chains and competitiveness.
• The debate intensified as the U.S. Supreme Court questioned Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs, with a ruling expected before year-end that could redefine presidential trade powers.
• A potential restriction on IEEPA authority could strengthen Mexico’s position ahead of the 2026 USMCA review, but uncertainty over U.S. trade policy continues to affect investment and regional production planning.
SOURCE: EL ECONOMISTA
LEGISLATIVE CHANGES AND INITIATIVES
LABOR
• BILL WITH DRAFT DECREE AMENDING AND ADDING SEVERAL PROVISIONS TO THE GENERAL HEALTH LAW ON OCCUPATIONAL VOCAL HEALTH
Presented by: Sen. Rolando Rodrigo Zapata Bello (PRI)
Objective: To update the legal framework on occupational health by defining it as the set of actions that protect workers’ physical, mental, and social well-being, and by empowering the Ministry of Health to regulate substances, equipment, exposure limits, and workplace sanitary controls, with emphasis on reducing risks for personnel exposed to hazardous materials.
Status: 2025-11-04 – Published in the Parliamentary Gazette
• BILL WITH DRAFT DECREE AMENDING VARIOUS ARTICLES OF THE FEDERAL LABOR LAW
Presented by: Sen. Claudia Edith Anaya Mota (PRI)
Objective: To require that at least three percent of the Mexican workforce in every company is composed of persons with disabilities, within the existing mandate that ninety percent of employees be Mexican nationals. The bill also obliges employers to provide inclusive training for workers with disabilities.
Status: 2025-11-05 – Published in the Parliamentary Gazette
PUBLIC ADMINISTRATION
• DRAFT DECREE OF THE FEDERAL EXPENDITURE BUDGET FOR FISCAL YEAR 2026
Presented by: Budget and Public Accounts Committee
Objective: To approve the Federal Expenditure Budget for 2026, establishing total net spending of MXN 10.19 trillion and a projected budget deficit of MXN 1.39 trillion, to be submitted to the Federal Executive for enactment.
Status: 2025-11-04 – Approved, sent to the Federal Executive
LEGISLATIVE CHANGES AND INITIATIVES
FISCAL (ECONOMIC PACKAGE PUBLICATION)
• INITIATIVE TO AMEND, ADD, AND REPEAL VARIOUS PROVISIONS OF THE EXCISE TAX LAW ON PRODUCTION AND SERVICES (IEPS)
Presented by: Ministry of Finance and Public Credit (Hacienda y Crédito Público)
Objective: To protect public health, specially among adolescents and young people, by discouraging habits that lead to addiction or cause mental and physical harm.
Status: 2025-11-07 – Published in the Official Gazette
• INITIATIVE TO REFORM, ADD, AND REPEAL VARIOUS PROVISIONS OF THE FEDERAL FISCAL CODE
Presented by: Ministry of Finance and Public Credit
Objective: To align regulations related to the issuance of fraudulent tax receipts. The initiative grants the Tax Administration Service (SAT) the authority to deny registration in the Federal Taxpayers Registry (RFC) to legal entities if, during the registration process, it is found that the legal representative has participated in companies previously linked to fraudulent activities.
Status: 2025-11-07 – Published in the Official Gazette
• BILL AMENDING, ADDING, AND REPEALING VARIOUS PROVISIONS OF THE FEDERAL RIGHTS LAW
Presented by: Joint Committees on First Legislative Studies and Finance and Public Credit Objective: To amend the Federal Rights Law to optimize the exploitation of national public assets and update fees for various services. The reform revises charges for financial supervision, water use, maritime and telecommunications services, and intellectual property, ensuring fair cost recovery, efficiency, and alignment with sectoral regulations.
Status: 2025-11-07 – Published in the Official Gazette
• INITIATIVE WITH REPORT FOR DISCUSSION TO ISSUE THE FEDERAL REVENUE LAW FOR FISCAL YEAR 2026
Presented by: Joint Commissions on Legislative Studies, First; Finance and Public Credit Objective: To establish the Federal Revenue Law for 2026, setting total estimated revenues at 10.193 trillion pesos, including tax and financing income, authorizing domestic and foreign public debt for the federal government, etc.
Status: 2025-11-07 – Published in the Official Gazette
NEWS BY STATE
BAJA CALIFORNIA
Gabriel Cabañas, Vice President of Promotion at Tijuana EDC (DEITAC), led the organization’s monthly Promotion Commission meeting, highlighting strong progress in investment attraction, including increased international visibility and new business prospects for Tijuana. Currently, DEITAC is managing around 18 investment leads in strategic sectors such as electronics and medical devices, reflecting the city’s robust manufacturing base. Website traffic rose by over 4,000 additional visitors compared to the previous month, signaling growing global interest in Tijuana’s industrial capabilities. Upcoming November initiatives include participation in binational and sector-specific events in California and a business seminar promoting Baja California’s strengths.
SOURCE: INDUSTRIAL NEWS BC
NEWS BY STATE
CHIHUAHUA
CANACINTRA Chihuahua hosts Expo Normativa 2025, an event aimed at strengthening trust, competitiveness, and regulatory compliance within the industrial sector. During the inauguration, Armando Gutiérrez Cuevas, President of CANACINTRA Chihuahua, called for stronger collaboration between businesses and government to drive national growth. He emphasized that coordinated efforts between the productive sector and all levels of government are essential to turn overregulation and distrust into engines of development. Gutiérrez highlighted that companies remain committed to legality, workplace safety, and best practices but require a more efficient regulatory environment—especially to support small and medium-sized enterprises. The Expo served as a key platform connecting private industry, authorities, and academia through conferences, panels, and exhibits on industrial safety, labor quality, and technological solutions for compliance. Participating companies included Tres Ríos, Auto Tokio, Qualitas, Centro de Calidad Ambiental, SOLSETEC, Modem, BWolven, SGA, and Smart Lab, among others.
SOURCE: PRO CHIHUAHUA
NUEVO LEON
CAINTRA Nuevo León, led by President Jorge Santos Reyna and Director General Juan Pablo García Garza, presented five strategic priorities for the 2026 State Budget, emphasizing the industrial sector’s role in improving metropolitan mobility and competitiveness. A recent CAINTRA survey revealed that eight in ten companies are already implementing mobility initiatives—such as remote work, staggered shifts, private transport, and carpooling—benefiting over 45,000 workers and contributing to cleaner air and reduced congestion. Through the “Todos por un Aire Más Limpio” initiative and collaboration with the state government, CAINTRA advocates for a comprehensive mobility plan and greater investment in infrastructure, SME support, security, environmental protection, and technical education to ensure sustainable growth and improved quality of life in Nuevo León.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
SAN LUIS POTOSI
Automotive Connection Potosí 2025 will be held in San Luis Potosí, bringing together leaders, suppliers, and buyers from Mexico’s automotive industry to boost national content and strengthen supply chains. The event, supported by the state’s Secretariat of Economic Development and the San Luis Potosí Automotive Cluster, features a robust B2B agenda with over 1,000 confirmed business meetings, a “Hecho en México” pavilion highlighting local talent, more than 100 exhibitors, and a special visit to the BMW plant. Organizers aim to generate over $100 million USD in new business agreements. Key buyers include BMW Group, BorgWarner, Stellantis, Cummins, and JTEKT, with participation from companies across Coahuila, Querétaro, Guanajuato, and the State of Mexico. The event positions San Luis Potosí and the Bajío region as central hubs for advanced manufacturing and supplier integration in Mexico’s growing automotive ecosystem.
SOURCE: MEXICO INDUSTRY
QUERETARO
The Kaizen II Industrial Park received the “Hecho en México” distinction, recognizing its compliance with national manufacturing standards established by the Ministry of Economy and strengthening its reputation among investors. The award ceremony, attended by federal and local authorities including Hugo Costa and Diana León, highlighted the park’s role in promoting domestic production and trusted supply chains. This certification enhances the credibility and visibility of companies operating within the park by validating quality, traceability, and origin—key factors for global buyers seeking reliable Mexican suppliers. Beyond its symbolic value, the distinction reinforces Kaizen II’s position as a competitive industrial platform that supports local supplier integration, economic growth, and job creation, while contributing to Mexico’s image as a high-standard manufacturing hub in global value chains.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
MEXICO CITY
Mexico City is seeking to achieve full water self-sufficiency by 2045 through a General Development Plan (PGD) that outlines a 20-year strategy that envisions a circular water model focused on rainwater capture, wastewater treatment, and reuse, supported by smart digital monitoring throughout the urban water cycle. Key measures include the construction of “purple lines” (pipelines for treated water use in industrial and public sectors) and the installation of rainwater harvesting systems in new homes and public buildings. The plan also proposes infiltration of galleries, green infrastructure, and metropolitan water governance mechanisms involving local governments, academia, and the private sector.
The initiative represents a significant shift toward climate resilience and urban sustainability but faces major structural and financial hurdles. With only 8% of wastewater currently treated and many areas still relying on intermittent water delivery, the challenge will be bridging the gap between planning and execution. For the PGD to be successful, public-private collaboration will be key.
SOURCE: IMAGEN
STATE OF MEXICO
The State of Mexico (EMX) ranks among the top three fastest-growing economies in the country, alongside Nuevo León and Yucatán, according to INEGI’s latest data. The state has sustained 17 consecutive quarters of economic expansion, driven by manufacturing, commerce, and professional services.
Despite reduced public spending and a global climate of uncertainty, the State of Mexico has maintained investor confidence through its diversified economy, strong logistics infrastructure, and skilled workforce. Its growth reflects effective coordination between government, private sector, and citizens, ensuring not only expansion but also the creation of formal employment and shared prosperity.
SOURCE: QUADRATIN EDOMEX
INVESTMENT NEWS
CENTRAL MEXICO
TE CONNECTIVITY
TE Connectivity announced an investment exceeding 33 million USD to establish a new manufacturing facility in Querétaro, Mexico. The company stated that operations will begin with a workforce of approximately 115 to 120 employees, with plans to expand to around 900 positions as market demand increases.
MOTHERSON
The Indian auto parts company will strengthen its plant in Zitlaltépec, Tlaxcala, with a 50 million USD investment to build a new paint shop for Audi Q5 and EQ7 models, generating 150 new jobs.
CONTINENTAL
With an investment of 90 million USD and the creation of 200 jobs in its first phase, ContiTech inaugurated its new plant in Aguascalientes, the second Continental facility in the state, dedicated to the production of hydraulic hoses. The facility is located in the VESTA Industrial Park.
SOURCE: MEXICO INDUSTRY
PRODENSA INSIGHTS
DATA CENTERS IN MEXICO: LATAM’S DIGITAL FUTURE
Mexico is rapidly positioning itself as Latin America’s leading destination for data center investment, driven by the rise of AI, cloud computing, and Industry 4.0. The market is expected to grow 7.07% annually through 2029, reaching 480 MW in installed IT capacity.
Querétaro leads the way, hosting 65% of the country’s installed capacity and attracting hyperscale projects from AWS, Microsoft, and Google Cloud. Other emerging hubs include Monterrey, Guadalajara, and Mexico City.
Key growth drivers include cloud adoption across Latin America, 5G expansion, nearshoring trends, and the growing need for low-latency, local data processing.
However, challenges remain — particularly in energy reliability, grid access, and specialized talent development. Sustainable energy will be a decisive advantage, with solar, wind, and Battery Energy Storage Systems (BESS) playing a key role in the next generation of infrastructure.
By 2030, Mexico’s data center industry could represent 5.2% of national GDP, or USD $73.5 billion in economic impact.
Download the e-book “Data Centers in Mexico 2025” to explore investment trends, key players, and regional opportunities shaping Mexico’s digital future.
PRODENSA INSIGHTS
THE NEXT GENERATION OF R&D IN MEXICO: AN EOR MODEL BUILT FOR EXPORT
Mexico is evolving beyond its manufacturing roots into a regional hub for research, development, and innovation (R&D). With strong university–industry collaboration, skilled talent, and nearshoring momentum, states like Nuevo León, Querétaro, Jalisco, and Guanajuato are leading R&D activity in advanced manufacturing, biotechnology, and renewable energy.
A key enabler of this transformation is the Employer of Record (EOR) model, which allows foreign companies to hire and manage R&D teams in Mexico without establishing a legal entity. This structure supports compliance, flexibility, and access to IMMEX Program benefits when exporting services or technology.
Prodensa’s Mindfacturing® solution takes this model further — combining EOR agility with IMMEX registration to help companies export intellectual capital through engineering, software, and digital transformation projects. It’s a bridge between U.S. innovation strategy and Mexican execution.
As industries like automotive electrification, semiconductors, and biotech expand, Mexico’s knowledge economy is gaining strength. With Mindfacturing®, companies can innovate, comply, and scale seamlessly across borders — turning Mexico into a true hub for global R&D.
Download the e-book to explore how the EOR model is reshaping R&D and service exports in Mexico.
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