GENERAL SITUATION IN MEXICO
Weekly Review I October 8, 2025
US - MEXICO
Mexico-US Security Cooperation: Recent Developments
• Mexico and the United States are entering a complex phase in security cooperation marked by both collaboration and tension.
• The Mexican Senate approved the entry of US Special Forces to conduct joint training exercises with Mexico’s Navy in Estado de México and Veracruz. This program, requested by President Claudia Sheinbaum, aims to strengthen intelligence, infiltration, and reconnaissance skills while enhancing bilateral coordination.
• At the same time, US. President Donald Trump formally declared the country at war with major drug cartels across the Western Hemisphere, including in Mexico. By designating cartels as “terrorist organizations,” Washington has expanded military powers to act globally, raising concerns about sovereignty, legality, and the risk of civilian harm.
SOURCES: CNN
US - MEXICO PRESIDENTIAL NEWS
USMCA Negotiation Processes
• Mexico has begun a consultation process to prepare for the 2026 review of the USMCA. The Ministry of Economy, with support from the Business Coordinating Council (CCE), is engaging 30 strategic sectors through national forums and state-level meetings.
• This effort seeks to incorporate perspectives from businesses, workers, and regional governments, ensuring a comprehensive strategy that reflects Mexico’s priorities in trade and competitiveness.
• Secretary of Economy Marcelo Ebrard emphasized the unprecedented inclusivity of this process, while CCE president Francisco Cervantes stressed that the review represents an opportunity to strengthen North American integration, attract investment, and boost employment.
• Parallel to these consultations, US Trade Representative Jamieson Greer signalled that Washington may favor bilateral negotiations over trilateral ones, hinting at a possible shift in dynamics. He also pointed to concerns about Mexico’s compliance with existing commitments. Together, these developments highlight the challenges and opportunities Mexico faces as it positions itself for a decisive phase in North American trade relations.
SOURCES: GOBIERNO DE MÉXICO
Foreign Trade and Tariffs
• Tensions between China, the United States, and Mexico have sharpened over semiconductor supply chains. At the U.S.-Mexico Semiconductor Forum, U.S. Chargé d’Affaires Mark Johnson warned that Washington would not tolerate dependence on Chinese technology and urged Mexico to align with U.S. industrial strategy.
• In response, the Chinese Embassy in Mexico expressed “strong dissatisfaction,” accusing Washington of imposing geopolitical competition and seeking to use Mexico as a tool.
• Beijing argued that such rhetoric undermines the Global South and exposes U.S. monopolistic intentions. China reaffirmed its commitment to multipolar globalization and urged Washington to abandon coercive, zero-sum approaches to cooperation.
SOURCE: EL ECONOMISTA
LEGISLATIVE CHANGES AND INITIATIVES
LABOR
• ARTICLE 123 OF THE CONSTITUTION, ON MEDICAL LEAVE FOR INCAPACITATING DYSMENORRHEA
Presented by: Sen. Lilia Margarita Valdez Martínez (MORENA)
Objective: Provide women employees diagnosed with primary or secondary incapacitating dysmenorrhea one to three days of paid menstrual leave per month, without affecting salary, seniority, bonuses, vacation, or other labor rights. Employees must present a medical certificate valid for one year. Employers cannot dismiss or coerce workers due to this condition or childcare responsibilities.
Status: 2025-10-01 – Published in the Parliamentary Gazette
• ARTICLE 123 OF THE CONSTITUTION, ON BEREAVEMENT LEAVE
Presented by: Rep. Eduardo Gaona Domínguez (MC)
Objective: Employers would be required to grant five paid working days of bereavement leave to employees upon the death of a parent, sibling, child (biological or adopted), or spouse/partner. Employees have 20 calendar days to submit official documentation proving the death.
Status: 2025-10-01 – Published in the Parliamentary Gazette
LEGISLATIVE CHANGES AND INITIATIVES
PATENT REGISTRATION
• INITIATIVE WITH DRAFT DECREE TO AMEND ARTICLES 1 AND 25 OF THE POLITICAL CONSTITUTION OF THE UNITED MEXICAN STATES
Presented by: Sen. María Guadalupe Chavira De La Rosa (MORENA)
Objective: Seeks to establish the obligation of companies to promote and respect human rights, prevent and repair damages from their activities, and implement due diligence processes. It also mandates federal and state plans to foster a culture of human rights in all productive sectors, with the creation of a National Program on Corporate Responsibility and Human Rights.
Status: 2025-09-30 – Published in the Parliamentary Gazette
FINANCIAL
• INITIATIVE TO AMEND ARTICLES 96 AND 152 OF THE INCOME TAX LAW
Presented by: Parliamentary Group of the National Action Party (PAN)
Objective: The initiative establishes that employers making payments for income from personal subordinate services must withhold and remit monthly amounts as provisional payments toward annual income tax. No withholding will apply to workers earning up to two general monthly minimum wages. Employers must report these amounts monthly to the tax authority. Additionally, the measure clarifies that it does not apply to income already exempt or subject to definitive tax, and individuals with taxable income not exceeding the equivalent of twelve months of two minimum wages must declare the total amount in their annual tax return.
Status: 2025-09-30 – Published in the Parliamentary Gazette
NEWS BY STATE
BAJA CALIFORNIA
The Ciudad Jatay project, developed by Grupo Valcas, is 70% complete in meeting the requirements of its Master Plan and could begin initial construction by April 2026 if the schedule is maintained. The development spans 1,090 hectares, with 350 designated for industrial parks, 150 for a technology development park, and the rest for residential, tourism, services, and green areas. All federal, state, and municipal permits have been obtained, and environmental and urban regulations have been met. The project has secured interest from three major investors and has resolved water supply concerns through negotiations with a company that will install a seawater desalination plant to fully meet industrial and residential needs. Of the nine planned development stages, seven have been completed, with the remaining two expected to finish by early next year. Ciudad Jatay will also include a “dry port,” a 30-hectare area for container storage to alleviate congestion in El Sauzal.
SOURCE: INDUSTRIAL NEWS BC
SONORA
Hermosillo’s mayor, Antonio “Toño” Astiazarán Gutiérrez, led a working tour in Phoenix, Arizona, attending SEMICON West, an international semiconductor industry event organized by American Chamber Mexico, to promote the city as a hub for innovation and investment. He highlighted Hermosillo’s dynamic job market, with a 2.5% unemployment rate—the lowest in 24 years—underscoring the city’s economic competitiveness. In meetings with Christine Mackay, Director of Phoenix’s Economic and Community Development Office, the mayor presented Hermosillo’s advantages for semiconductor suppliers, emphasizing industrial infrastructure, specialized talent, and commitment to sustainable energy. Over 20 young residents showcased municipal development programs, positioning Hermosillo as an innovative city with cultural identity and renewable energy initiatives. The delegation included key municipal and industry representatives, aiming to integrate Hermosillo into the global semiconductor supply chain, a sector critical to North American technological development.
SOURCE: CANAL SONORA
NEWS BY STATE
CHIHUAHUA
The Government of Chihuahua, through its Secretariat of Innovation and Economic Development (SIDE), announced the International Semiconductor Forum 2025, scheduled for October 9–10 at the Centro de Investigación en Materiales Avanzados (CIMAV) in Chihuahua’s Industrial Park. Part of the state’s “Ruta de los Semiconductores” initiative, the forum aims to position Chihuahua as a national technology hub by strengthening talent, attracting investment, and advancing research. The event will feature conferences, panels, and technical tours on emerging technologies and integrated circuit development, involving national and international experts, including Manuel Quevedo (UTD), Edmundo Gutiérrez, and Fernando Alba (SIDE). It targets professionals, young specialists, entrepreneurs, educators, and innovation leaders to foster dialogue between research and industry needs. SIDE has supported CIMAV’s International Semiconductor Diploma with funding that increased from 320,000 pesos in 2024 to 400,000 pesos in 2025, benefiting a total of 32 participants, to further promote specialized talent and professional development.
SOURCE: GOVERNMENT OF CHIHUAHUA
NUEVO LEON
Garza Ponce Desarrollos inaugurated the first phase of the Pocket Park Libramiento in Escobedo, Nuevo León, with a total projected investment of $85 million USD. The 30-hectare industrial park, capable of accommodating up to 12 modern industrial units, is designed to offer flexible, efficient spaces for light manufacturing and logistics operations tailored to client needs. Unlike traditional industrial parks of 100–120 hectares, this compact “Pocket Park” model allows locations near urban areas, reducing transportation challenges and providing access to nearby housing and services for employees. The project is part of Garza Ponce’s northern Mexico expansion strategy, complementing seven similar developments across Nuevo León and other states, and aims to support nearshoring initiatives, strengthen regional supply chains, and leverage the state’s strategic connectivity with the U.S. border and manufacturing ecosystem.
SOURCE: CLUSTER INDUSTRIAL
NEWS BY STATE
COAHUILA
Index Nuevo León held its 2025 Directors’ Meeting in Saltillo to define strategic priorities for Mexico’s industrial competitiveness under the USMCA framework. Industry leaders, government officials, and experts emphasized that nearshoring and North American economic integration present a historic opportunity for Mexico, contingent on advancements in modern infrastructure, skilled labor, and regulatory certainty. The meeting reviewed key USMCA topics, including rules of origin, investment and arbitration mechanisms, intellectual property, labor mobility, energy, environment, and secure trade, highlighting the need for coordinated public policies to avoid uncertainty or supply chain disruptions. Five strategic pillars were proposed to guide Mexico’s industrial policy: clean energy and sustainability, industrial dig-
italization, technical and digital talent development, security and rule of law, and legal/regulatory certainty. Special guests, including Fritz Eisele, Honorary Consul of Germany in Monterrey, and Luis Olivares, Secretary of Economy of Coahuila, recognized the importance of export manufacturing and emphasized collaboration between industry and government to strengthen Mexico’s position in the region. The meeting provided a platform to align public and private efforts to capitalize on nearshoring, foster innovation, and secure Mexico’s role in advanced manufacturing.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
GUANAJUATO
Siemens, Mazda, and Pasubio are strengthening Guanajuato’s industrial ecosystem by expanding their supplier networks through partnerships with local companies. During “Conexión Industrial” and Supplier Day events, over 460 local firms have connected with national and international corporations, gaining access to new contracts and strategic alliances. These initiatives enhance competitiveness, promote technology transfer and quality standards, and benefit sectors such as automotive, electronics, energy, and food. By fostering collaboration between global companies and local producers, Guanajuato is solidifying its position as a leading industrial hub in Mexico, driving growth, innovation, and quality employment.
SOURCE: MEXICO INDUSTRY
QUERETARO
The Second International Aerospace Innovation Congress (INAE) in Querétaro, organized by the Universidad Aeronáutica en Querétaro (UNAQ), brought together industry and educational institutions to advance aerospace talent, certification, and technology. State officials highlighted Querétaro’s transition from automotive and appliance sectors to a specialized aerospace platform, with the Querétaro International Airport (AIQ) envisioned as a future “spaceport” to attract new industries. UNAQ emphasized sustainable aviation, technical certification, and hands-on training to prepare students for high-tech projects. The congress fosters collaboration on aerospace manufacturing, sustainable fuels, and related systems, strengthening local capabilities, knowledge sharing, and industry standards. By linking research, industry, and education, Querétaro positions itself as a hub for aerospace innovation and technical workforce development.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
MEXICO CITY
The North Capital Forum 2025, organized by the U.S.–Mexico Foundation, took place in Mexico City from October 5–7, 2025, bringing together leaders from government, business, and academia across North America to strengthen trilateral collaboration under the theme “The North American Way.” Discussions centered on regional economic development, energy transition, sustainability, innovation, governance, and security. Participants explored strategies to enhance North American competitiveness through integrated supply chains, responsible investment, and institutional cooperation. High-level speakers and fellows shared perspectives on emerging opportunities in finance, technology, and trade, emphasizing that shared values and regional coordination are key to advancing prosperity and resilience across the continent.
SOURCES: NORTH CAPITAL FORUM , US MEX FOUNDATION
STATE OF MEXICO
The State of Mexico continues to strengthen its position as one of the country’s main industrial and investment hubs. Recent announcements from Jumex, Nutriwell, and Waldos Dolar Mart, totaling nearly MXN 2.6 billion, reflect growing business confidence and support the creation of formal jobs and industrial modernization. Between September 2023 and April 2025, the state recorded over USD 8.9 billion in FDI, ranking second nationally with strong participation from the United States, Germany, and Australia, particularly in the automotive, construction, logistics, and commerce sectors.
A key project driving this momentum is the Nezahualcóyotl Economic Development Hub for Wellbeing, which involves an MXN 800 million investment aimed at urban development and the generation of 4,500 jobs, in coordination with the federal government. This initiative forms part of a broader industrial policy focused on infrastructure, innovation, and sustainability, ensuring that economic growth translates into social welfare.
SOURCE: MEXICO INDUSTRY
INVESTMENT NEWS
NORTHERN MEXICO
DEACERO
Grupo DEACERO laid the foundation stone for its new recycling plant in Ciudad Juárez, with an investment of 250 million pesos. The facility will process 10,000 tons of scrap per month and create 1,540 direct and indirect jobs in the region.
YAMAGUCHI
Japanese company YAMAGUCHI MFG inaugurated a new plant in Villa de Pozos, San Luis Potosí, following its decision to establish and expand operations in the state. The investment, exceeding 13.6 million USD, will create 100 direct jobs and strengthen the local automotive industry.
CENTRAL MEXICO
WALDO’S
Retail chain Waldo’s has confirmed an investment of 16.8 million USD in Estado de México for this year, as part of an aggressive expansion plan that includes opening at least 10 new stores and consolidating the state as its main national operations hub.
SOURCE: CLUSTER INDUSTRIAL
PRODENSA INSIGHTS
TURNKEY EXPANSION IN MEXICO: FROM VISION TO OPERATION
In today’s global economy, speed and certainty define success. For companies expanding into new markets, Mexico stands out as a strategic destination — offering proximity to the U.S., a strong industrial base, and the benefits of the USMCA framework.
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BUILDING STRONG SUPPLIER PARTNERSHIPS IN MEXICO
In a world of tariff volatility and global supply chain disruption, companies are rethinking their sourcing strategies — and Mexico has become a critical link in building regional resilience.
Choosing the right supplier or manufacturing partner in Mexico can define the success of your operation — from product quality and lead times to long-term scalability.
Based on Prodensa’s The Mexico Journey® framework and decades of supplier development experience, this guide helps investors and executives identify the right operational model, assess qualified partners, and build trusted relationships that strengthen North American competitiveness.
Explore how to find and develop the right suppliers in Mexico — and turn partnerships into a lasting advantage.
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