Weekly Report - 03.07.26

Weekly Report July 3rd, 2026

Hot Topics USMCA JOINT REVIEW BEGINS AS U.S. DECLINES 16-YEAR RENEWAL The United States formally declined to extend the USMCA for an additional 16 years during the agreement’s first Joint Review on July 1st, triggering the treaty’s review mechanism rather than its renewal.

Under the USMCA, the agreement remains in force until 2036 and will now be subject to annual joint reviews, during which the three countries may still agree to extend its duration by another 16 years. Mexico and Canada supported an immediate extension, while the U.S. argued that additional discussions are needed to address trade deficits and perceived shortcomings in the agreement.

Following the virtual ministerial meeting, Secretary of Economy, Marcelo Ebrard, confirmed that the USMCA remains fully operational, with more than 80% of Mexican exports to the United States continuing to enter duty-free. He emphasized that the annual reviews will focus on specific issues raised by the parties rather than reopening the entire agreement, while reaffirming that preserving Mexico’s preferential market access remains the government's priority.

The U.S. Trade Representative (USTR) similarly stated that Washington will continue negotiations with Mexico and Canada before considering any future extension. The next major step in the process will be a bilateral review round between Mexico and the United States in Mexico City during the week of July 20, where negotiators are expected to begin discussions on priority issues, including regional production, trade deficits, and sectorspecific concerns.

Source: FORBES, SECRETARÍA DE ECONOMÍA, USTR, SECRETARÍA DE ECONOMÍA

SHEINBAUM MEETS WITH IMMEX COMPANIES TO BRING CERTAINTY President Sheinbaum met with representatives of Mexico’s IMMEX manufacturing and export industry following the conclusion of the USMCA joint review process, in order to provide certainty for companies planning long-term investments.

She stated that the government will continue promoting new investment and job creation through Plan México while encouraging companies to make greater use of Mexico’s foreign trade single-window system.

Industry leaders welcomed the outcome of the review. CONCAMIN President Alejandro Malagón said the agreement’s continued validity for the next decade provides greater certainty for investment decisions despite the adoption of annual reviews instead of an immediate extension.

Source: X: CLAUDIA SHEINBAUM, LA JORNADA

MEXICO LAUNCHES NATIONWIDE CUSTOMS AGENCIES SCHEME Mexico’s Minostry of Economy, the National Customs Agency (ANAM), and the Tax Administration Service (SAT) launched the nationwide implementation of the customs agencies framework, completing a key modernization initiative under the government’s Plan México strategy. The new scheme formally authorizes corporate customs agencies to conduct customs clearance operations under the framework established in the Customs Law, aiming to streamline trade procedures and provide greater legal certainty across the country’s 50 customs offices. The nationwide rollout follows a pilot program conducted between May 19th and June 30th, 2026, during which authorities worked with customs brokers’ associations to address operational and legal issues before full implementation. The initiative is intended to improve the efficiency of customs operations, facilitate international trade, and strengthen Mexico’s compliance with its international trade commitments.

Source: SECRETARÍA DE ECONOMÍA

2

Hot Topics US SUPREME COURT BIRTHRIGHT CITIZENSHIP

MEXICO AND THE U.S. STRENGTHEN FINANCIAL COOPERATION AGAINST CARTEL MONEY LAUNDERING Mexico’s Financial Intelligence Unit (UIF) announced it is strengthening coordinated efforts with U.S. authorities to disrupt financial networks linked to the Pacific Cartel involved in drug trafficking and money laundering. The action follows sanctions imposed by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) against 14 individuals and entities allegedly connected to criminal organizations that launder proceeds from fentanyl trafficking through cryptocurrencies, shell companies, and cross-border financial operations. The UIF is conducting fiscal, financial, and corporate analyses to identify additional networks and implement corresponding legal measures. Separately, the U.S. Treasury announced additional joint actions with the UIF targeting fuel-smuggling schemes linked to the Jalisco New Generation Cartel (CJNG), underscoring the expanding bilateral focus on dismantling cartel financing beyond traditional narcotics trafficking.

The announcement reflects broader U.S.-Mexico cooperation to target the financial structures supporting transnational criminal organizations.

Mexican authorities stated that the initiative aims to protect the integrity of the financial system, combat illicit financial flows, and align enforcement with international standards.

Source: U.S. DEPARTAMENT OF TREASURY, SECRETARÍA DE HACIENDA

UPHOLDS

The U.S. Supreme Court struck down President Donald Trump's executive order seeking to restrict birthright citizenship, reaffirming that the Fourteenth Amendment guarantees U.S. citizenship to nearly all individuals born on U.S. soil, including children of undocumented immigrants and temporary visa holders. The 6-3 ruling maintains the longstanding constitutional interpretation established in United States v.

Wong Kim Ark (1898), preserving existing citizenship rules. President Claudia Sheinbaum welcomed the decision, noting that it protects the rights of Mexican families living in the United States whose children are born there and retain access to dual nationality. The ruling removes uncertainty for millions of migrant families and reinforces the constitutional limits on executive authority to modify citizenship policy without a constitutional amendment.

Source: NEW YORK TIMES, EL HERALDO

MEXICO MAINTAINS TAX INCENTIVES TO SUPPORT INVESTMENT AND SOCIAL POLICY Mexico’s Ministry of Finance (SHCP) estimates it will forgo approximately MXN 3.4 trillion in tax revenue during 2026 and 2027 through tax expenditures, including exemptions, reduced tax rates, and fiscal incentives designed to promote investment, regional development, and social welfare. According to the government’s 2026 Tax Expenditure Report, foregone revenue is projected at MXN 1.67 trillion in 2026 (4.48% of GDP) and MXN 1.76 trillion in 2027 (4.45% of GDP).

The ministry emphasized that these measures do not represent direct government spending but rather preferential tax treatments that reduce or defer taxpayers’ obligations.

The report underscores the government’s continued reliance on targeted fiscal incentives to encourage economic activity, strengthen strategic regions, and support household income while balancing broader fiscal objectives.

Source: EXPANSIÓN

3

Legislative and Regulatory Issues: LABOR

TRADE

TECH

Agreement Establishing the Periods Considered Non-Working Days in 2026 for Administrative Acts and Procedures Conducted by the Ministry of Labor and Social Welfare • Presented by: Ministry of Labor and Social Welfare (STPS) • Objective: Establishes July 15– 31 and December 15–31, 2026, as non-working periods for administrative procedures conducted by the Ministry of Labor and Social Welfare. The measure applies to labor contracting procedures, inspections, oversight activities, and sanctioning processes carried out under the Federal Labor Law and applicable inspection regulations.

• Status: July 2, 2026 – Regulatory Impact Assessment Exemption.

Notice Announcing the Names of Program Holders and IMMEX Program Numbers Suspended for Failure to Submit the 2025 Annual Report • Presented by: Federal Executive • Objective: Publishes the names of program holders and the corresponding Manufacturing, Maquiladora, and Export Services Industry (IMMEX) program numbers that have been suspended for failing to submit the annual report for fiscal year 2025.

• Status: June 20, 2026 – Published in the Official Gazette (DOF).

Bill to Amend Article 3 of the National Security Law • Presented by: Deputy Giselle Yunueen Arellano Ávila (MORENA) • Objective: Amends Article 3 of the National Security Law to recognize cyberspace sovereignty as part of national security. Defines national security to include protecting the State’s jurisdiction, control, and defense over critical digital infrastructure and government communication networks located in Mexico.

• Status: July 1, 2026 – Published in the Parliamentary Gazette.

Decree Amending the Agreement Establishing DualUse Goods, Software, and Technologies Subject to Export Controls by the Ministry of Economy • Presented by: Federal Executive • Objective: Amends the agreement governing export controls on dual-use goods, software, and technologies by aligning Mexico’s controls with international export control regimes, while providing for future updates consistent with additional United States export control measures.

• Status: July 3, 2026 Published in the Official Gazette (DOF) .

Bill to Amend Article 5 of the National Security Law to Incorporate Cyber Threats as Grounds Affecting National Security • Presented by: Deputy Giselle Yunueen Arellano Ávila (MORENA) • Objective: Amends Article 5 of the National Security Law to recognize cyber threats as matters affecting national security. Expands the legal framework to address cyberattacks against critical digital infrastructure, cyber espionage, cyber sabotage, and foreign or non-state digital interference.

• Status: July 1, 2026 – Published in the Parliamentary Gazette.

Note: Mexico’s Congress is currently in recess; only the Permanent Commission of the Mexican Congress remains active. It is highly unlikely that another extraordinary period will take place.

4

www.prodensa.com contact@prodensa.com