GENERAL SITUATION IN MEXICO
Weekly Review I November 5, 2025
US - MEXICO PRESIDENTIAL NEWS
Security Cooperation
• U.S. officials confirmed that the Trump administration is in advanced planning for a new mission that would deploy U.S. troops and intelligence officers inside Mexico to target drug cartels, including strikes on drug labs and cartel leadership.
• The operation would involve Special Operations forces operating under Title 50 intelligence authority, alongside CIA personnel, marking a shift from previous U.S. policy that limited direct military action on Mexican soil.
• Although early training for the mission has begun, deployment is not imminent, and the scope is still under internal discussion. The plan is intended to remain covert, similar to recent U.S. strikes on suspected drug-smuggling vessels.
• The initiative follows the February designation of several Mexican cartels as foreign terrorist organizations, granting the U.S. broader legal capacity to conduct covert operations.
• Mexican authorities emphasized continued intelligence collaboration with U.S. agencies but have not confirmed acceptance of any U.S. military presence on Mexican territory.
SOURCES: NBC NEWS
US -
MEXICO
PRESIDENTIAL NEWS
USMCA Negotiation Processes
• Mexico’s internal consultation phase on the USMCA entered its final stage, with 28 of 32 state-level and sectoral sessions completed since early October, according to the Secretary of Economy, Marcelo Ebrard.
• Once the remaining four consultations conclude, the government will compile all proposals, concerns, and recommendations into a unified document that will guide Mexico’s negotiation priorities for the 2026 review.
• The process marks the first time Mexico has carried out an open and nationwide public consultation for a trade agreement, contrasting with the “cuarto de junto” model used in previous negotiations.
• In parallel, the U.S. Trade Representative (USTR) closed its own public consultation period on November 3rd, receiving 823 written submissions and 43 requests to testify at the November 17th hearing in Washington.
• Both processes reflect growing domestic engagement in the lead-up to the 2026 USMCA review, signaling a more transparent and politically sensitive renegotiation cycle across North America.
SOURCES: LA JORNADA
Foreign Trade and Tariffs
• Mexican President Claudia Sheinbaum confirmed that she and U.S. President Donald Trump agreed to extend negotiations for several weeks to resolve 54 non-tariff barriers.
• Sheinbaum stated that talks are in their final stage and aim to settle long-standing trade disputes, signaling progress despite repeated extensions since the beginning of Trump’s second term.
• President Trump, welcomed the extension and highlighted that the U.S. continues to collect tariff revenue during the negotiation period.
• The decision reflects a shared interest in reducing bilateral trade tensions and providing certainty ahead of the 2026 USMCA review, when broader trade rules will be reassessed.
SOURCE: CNN
LEGISLATIVE CHANGES AND INITIATIVES
LABOR
• BILL WITH DRAFT DECREE AMENDING THE FEDERAL LABOR LAW, SOCIAL SECURITY LAW, AND FEDERAL LAW OF WORKERS IN THE SERVICE OF THE STATE REGARDING PATERNITY LEAVE
Presented by: Senator Reyna Celeste Ascencio Ortega (PT)
Objective: To require employers to grant male workers twenty paid working days of paternity leave for the birth or adoption of a child, promoting shared caregiving responsibilities, workplace equality, and family well-being in both public and private sectors, while advancing broader labor protections and social co-responsibility policies nationwide.
Status: 2025-10-21 – Published in the Parliamentary Gazette
PUBLIC ADMINISTRATION
• INITIATIVE WITH DRAFT DECREE TO ISSUE THE MIXED INVESTMENTS FOR WELFARE LAW
Presented by: Dip. Gabriela Georgina Jiménez Godoy (CDMX - MORENA)
Objective: To regulate mixed investment projects for welfare, establishing long-term contracts between public and private sectors to provide services, improve social welfare, ensure transparency and supervision, promote regional development, and set procedures.
Status: 2025-10-28 – Published in the Parliamentary Gazette
SECURITY
• BILL WITH DRAFT DECREE ISSUING THE GENERAL LAW TO PREVENT, INVESTIGATE, AND SANCTION CRIMES OF EXTORTION
Presented by: Justice Committee
Objective: To create a unified framework for preventing and prosecuting extortion crimes, defining the offense and establishing jurisdiction, coordination, and penalties. The bill introduces stricter sanctions for aggravated cases and aims to strengthen victim protection and institutional trust.
Status: 2025-10-28 – Approved, sent to the Senate of the Republic
LEGISLATIVE CHANGES AND INITIATIVES
FISCAL (ECONOMIC PACKAGE APPROVAL )
• 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: 2025-10-28 – Approved, sent to the Federal Executive
• 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: 2025-10-28 – Approved, sent to the Federal Executive
• 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: 2025-10-28 – Approved, sent to the Federal Executive
• 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: 2025-10-29 – Approved, sent to the Federal Executive
NEWS BY STATE
BAJA CALIFORNIA
A “State Consultation on the USMCA” was held in Tijuana, Baja California, bringing together business, academic, and government representatives to gather regional proposals ahead of the 2026 review of the trade agreement between Mexico, the United States, and Canada. The event produced a document reflecting the perspectives of over 80% of the state’s key industries—including aerospace, medical manufacturing, and transportation—most of which expressed optimism about the upcoming negotiations. Officials emphasized that the consultation resulted in a unified, professional proposal highlighting Baja California’s economic priorities, to be presented to Foreign Secretary Marcelo Ebrard. The forum, part of a national initiative, identified strengths, risks, and key issues such as digital trade, energy, talent, semiconductors, and labor. Participants agreed that Baja California’s voice will play a crucial role in shaping Mexico’s position due to its leadership in exports, advanced manufacturing, and cross-border integration.
SOURCE: INDUSTRIAL NEWS BC
NEWS BY STATE
NUEVO LEON
Nuevo León reinforced its leadership in innovation and advanced manufacturing by hosting the ninth edition of the “Be an Aerospace Supplier” seminar, organized by the Mexican Federation of the Aerospace Industry (FEMIA) in collaboration with HEMAQ. The event gathered national and international companies, academic institutions, and government agencies to strengthen Mexico’s aerospace value chain. State Secretary of Economy Betsabé Rocha Nieto highlighted the importance of supporting SMEs’ participation in global supply chains and positioning Nuevo León as Latin America’s leading aerospace innovation hub. Representatives from Airbus, Boeing, Bom-
bardier, Embraer, and GE Aerospace discussed challenges and opportunities in innovation, quality, and talent development. FEMIA also recognized key industry partners contributing advanced technological solutions. The seminar emphasized collaboration between industry, academia, and government as the foundation of Nuevo León’s competitiveness and served as a platform for networking and supplier integration. The 2025 edition reaffirmed FEMIA’s commitment to making Mexico a global benchmark in advanced manufacturing through technology adoption, energy efficiency, and local capability development.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
CHIHUAHUA
“Conecta Chihuahua” brought together over 600 participants and 17 major retail chains—including Walmart, Oxxo, Soriana, and Grupo Bafar—to strengthen business connections and open new opportunities for local micro, small, and medium-sized enterprises (MiPyMEs).
Held on October 30–31 at the Chihuahua Convention Center, the event featured one-on-one business meetings and keynote conferences on topics such as supply chain sustainability and EU-Mexico cooperation. Organized by the State Government and Coparmex Chihuahua, it also included the signing of a collaboration agreement between the Ministry of Innovation and Economic Development (SIDE) and DHL Express México to support MiPyMEs with training and discounts of up to 65% on international shipping. The partnership, valid through May 2026, aims to boost the “Hecho en Chihuahua” brand, promote digitalization and e-commerce, and integrate local companies into global value chains.
SOURCE: SOL DE CHIHUAHUA
COAHUILA
Stellantis México celebrated the 15th anniversary of its South Engine Plant in Coahuila, a key facility dedicated to assembling the Pentastar engine since 2010. With over 900 employees and more than seven million engines produced, the plant has become essential to Mexico’s automotive exports and industrial growth. The Pentastar engine, known for its innovation and efficiency, has been recognized seven times by WardsAuto as one of the world’s best engines. Cosimo Marino, Vice President of Engine Manufacturing at Stellantis México, highlighted the dedication and teamwork that have driven the plant’s success. Currently producing 13 Pentastar variants for models such as the Ram 1500, Dodge Durango, and Jeep Grand Cherokee, the Coahuila facility continues to strengthen Stellantis’s global manufacturing leadership.
SOURCE: CLUSTER INDUSTRIAL
NEWS BY STATE
GUANAJUATO
Guanajuato strengthened its economic ties with Canada to attract new investments, highlighted by SOPREMA’s reaffirmed commitment of USD 300 million for its plant in San Miguel de Allende, which will create over 250 direct jobs. During a high-level visit to Quebec, State Secretary Cristina Villaseñor met with companies such as QG100 Network, Meloche, Transtex, St. Johns Packaging, and MARKDOM International to promote Guanajuato’s advantages in talent, logistics, and industrial certainty. The meetings emphasized opportunities in sustainability, innovation, and technology transfer.
SOPREMA’s expansion will boost local manufacturing, engineering, and SME integration, while discussions with St. Johns Packaging and MARKDOM focused on strengthening supply chains and import substitution. The presence of the Canadian Embassy’s delegate underscored the confidence of Canadian investors in Guanajuato as a key hub for advanced manufacturing and export growth.
SOURCE: MEXICO INDUSTRY
QUERETARO
Canacintra Querétaro officially inaugurated its Innovation, Technology, and Linkage Commission, led by José Carlos Arredondo Velázquez, during the Innovation Summit. The event, presided over by Governor Mauricio Kuri, emphasized the private sector’s role in advancing the state’s scientific and industrial development. The new commission aims to strengthen collaboration among industry, academia, and government to boost competitiveness, productivity, and technological adoption. Canacintra President Alfredo Sahagún highlighted that this initiative will foster closer ties among members, promote innovation, and add value to local manufacturing. Authorities, including Mayor Felipe Macías, underscored Querétaro’s strong environment for entrepreneurship and applied research. The commission seeks to enhance R&D capabilities, link companies with research centers, and drive technology transfer, positioning Querétaro as a national leader in innovation and a prime destination for new investments.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
MEXICO CITY
Mexico City has lost ground as a preferred destination for real estate investment, with only 20% of the capital deployed by members of the Mexican Association of Real Estate Developers (ADI) directed to Mexico City, compared to 80% in previous years. According to ADI director María José Fernández Ros, developers have redirected projects to other regions due to prolonged delays in obtaining permits and licenses, which in some cases took three to four years despite full regulatory compliance.
Uncertainty has also increased due to proposed local regulations. ADI members, which include 78 companies planning to invest USD 15 billion in 2025, now favor tourist and industrial hubs that offer faster authorization processes and clearer investment conditions.
The shift highlights a structural challenge for Mexico City: without regulatory clarity and streamlined permitting, housing shortages will persist and rental prices will remain under pressure. Reestablishing investor confidence will likely require policy adjustments and renewed coordination between the private sector and local authorities.
SOURCE: EL ECONOMISTA
STATE OF MEXICO
The State of Mexico has emerged as one of the country’s most resilient economic engines, registering 17 consecutive quarters of expansion and positioning itself alongside Nuevo León and Yucatán as a leading hub of sustained growth. The state’s performance has been driven primarily by manufacturing, construction, and commerce, sectors that continue to attract investment due to their scale, workforce availability, and strategic proximity to Mexico City and key logistics corridors.
Unlike other regions facing stagnation, the State of Mexico has benefited from a steady pipeline of industrial projects, growing demand in consumer markets, and the reconfiguration of supply chains linked to nearshoring. State authorities have also emphasized infrastructure upgrades and incentives for export-oriented industries, which have helped shield the local economy from broader national slowdowns. As national economic activity weakens, the State of Mexico’s momentum reinforces the increasing importance of subnational performance in sustaining Mexico’s overall growth outlook.
SOURCE: MISIÓNPOLÍTICA
INVESTMENT NEWS
NORTHERN MEXICO
COX
The Spanish energy group COX announced an investment of 4.2 billion dollars in Nuevo León, focused on clean energy and water management projects. This investment is part of the company’s global plan, which allocates 6.4 billion dollars through 2028 for the development of renewable energy and water projects, nearly half of which will be directed to Mexico following the recent acquisition of Iberdrola México. These projects will generate over 4,000 temporary jobs and 250 permanent positions.
EQUINIX
With an investment of 250 million dollars, the U.S. company Equinix inaugurated its MO2 Data Center at the Nexxus Aeropuerto Industrial Park, located in Apodaca, Nuevo León. The project will generate 500 direct jobs. The first phase began operations in September 2025, with expansion plans extending through 2030.
CENTRAL MEXICO
INFRA
Grupo INFRA, a Mexican company in the industrial gases and healthcare solutions sector, has taken a decisive step toward the energy transition with the launch of its green hydrogen plant in Querétaro. The project represents an investment of 5.5 million dollar, carried out in partnership with its ally Gerresheimer.
SOURCES: CLUSTER INDUSTRIAL, MEXICO INDUSTRY
PRODENSA INSIGHTS
THEN AND NOW – FOUR DECADES OF INDUSTRIAL GROWTH IN MEXICO
For 40 years, Prodensa has been part of Mexico’s transformation into one of the world’s most competitive manufacturing destinations. From Monterrey’s rise as the nation’s industrial capital to Querétaro’s emergence as an aerospace hub, each region tells the story of progress, innovation, and partnership.
This special feature revisits five key industrial regions where Prodensa has helped global manufacturers build and grow:
• Monterrey, NL: From steel and glass to advanced manufacturing and innovation.
• Saltillo, Coahuila: Evolving from “Mexico’s Detroit” into a hub for EV and metal-mechanics.
• Mexicali, BC: Transitioning from a border assembly city to a high-tech center for aerospace and medical devices.
• Silao, Gto.: Growing from agricultural roots into a powerhouse of automotive and logistics.
• Querétaro, Qro.: Expanding from a regional economy to a Latin American leader in aerospace and R&D.
As the only shelter company with full national coverage, Prodensa continues to deliver agility and value across every major industrial market in Mexico.
PRODENSA INSIGHTS
KEYS TO STRENGTHEN NORTH AMERICA’S NEARSHORING SUPPLY CHAIN
North America’s competitiveness depends on collaboration — not competition. Under the USMCA, Mexico has become a cornerstone of an integrated regional supply chain that combines cost efficiency with innovation and resilience.
Prodensa’s new e-book, Supply Chain in Mexico 2025: Building the Future of North American Manufacturing, outlines a roadmap for executives to navigate this transformation. It highlights six strategic pillars for building a stronger, more connected manufacturing footprint across the U.S., Mexico, and Canada:
• USMCA as a regional enabler: Predictability and tariff-free trade drive investment and integration.
• Resilience over cost savings: Nearshoring reduces risk and strengthens supply continuity.
• Local supplier development: Boosts competitiveness and regional value creation.
• SME integration: Expands scalability and innovation across industries.
• Compliance and transparency: Builds trust and long-term investor confidence.
• Ally-shoring vision: Aligns the region on energy, workforce, and sustainability goals. VISIT OUR WEBSITE TO EXPLORE OUR FEATURED BLOG POSTS, EBOOKS, AND CASE STUDIES PRODENSA.COM/INSIGHTS