June 27th – July 4th , 2025
Hot Topics
US PLACES1%TAXON REMITTANCES
President Claudia Sheinbaum announced that her government will not reimburse the 1% US tax on cash remittances approved under Donald Trump's fiscal plan, but will offer an alternative through the Finabien card. This initiative aims to encourage electronic transfers to avoid the tax, distributing cards through Mexican consulates in the US Remittances to Mexico, which are critical for millions of families. They also fell 4.6% in May 2025, likely due to the uncertainty surrounding the tax, which could come into effect in January.
Mexico, the second-largest global sender of remittances, risks further declines, affecting household income and domestic consumption Also, while Central American countries have seen remittances increase, Mexico's drop reflects slower migration flows and tax-related caution. For Mexico, the implications are significant: preserving remittances requires technological infrastructure, trust in the Finabien system, and close coordination with the Bank of Mexico and affected communities. As the US reviews the tax bill, Mexico must also consider diplomatic communication to mitigate the tax’s impact on migrants and the national economy
Source: REUTERS
SECURITYCOOPERATIONCOULDPROVE TENSEAMIDCARTEL-RELATED DEVELOPMENTS
The US Department of Justice dropped drug trafficking charges in New York against Ovidio Guzmán, son of “El Chapo,” ahead of his guilty plea in Chicago on July 9. This development could have implications in bilateral security collaboration. Furthermore, Mexican boxer Julio César Chávez Jr was detained in California for alleged links to organized crime and arms trafficking, potentially connected to the Sinaloa Cartel; he has also publicly acknowledged ties with Ovidio Guzmán These events could complicate Mexico security cooperation. As the US intensifies their actions against cartel-linked individuals, Mexico must balance judicial independence and their political stance. Lastly, the developments could raise pressure during the USMCA review, especially if allegations of cartel influence over public figures affect US perceptions of Mexico’s rule of law
Source: NYT
THE BIG BEAUTIFUL BILL
President Trump’s new bill is now awaiting his signature. It consists of a $4.5 trillion dollar package combining tax cuts, reductions to social programs like Medicaid and food assistance, and spending increases for immigration enforcement. Also, it will add an estimated $3.4 to $5.5 trillion dollars to the federal debt. While wealthier Americans benefit most, lower-income groups will face cuts to benefits. The bill's passage, could reshape the US economic policy and strain US-Mexico relations due to provisions taxing remittances and increasing deportation funding
Source: THE WHITE HOUSE
Hot Topics
REFORMSAREFASTTRACKEDDURING EXTRAORDINARYSESSIONINCONGRESS
Between June 23 and July 2, 2025, Mexico’s Congress held an extraordinary legislative period in which 17 out of 20 proposed reforms were fasttracked and approved, mostly backed by Morena and its allies. Also, the session used a hybrid quorum format, allowing remote participation from legislators, and took place while Morena holds a qualified majority, raising concerns about democratic checks and balances Moreover, key reforms included security centralization, the elimination of regulatory agencies like IFT and COFECE, and the militarization of the National Guard. Although intended to modernize governance and national security, the speed and method of approval, highlights a debate and opposition participation; it could pose risks to legislative transparency, pluralism, and institutional balance in the democracy of the country
Source: EXCÉLSIOR
PHARMA INVESTMENT PLAN IS ANNOUNCED
As part of the “Plan México,” four national pharmaceutical companies will invest over $10 billion pesos to expand drug production, biotechnology, and health innovation Projects include new plasma fractionation plants, and facilities for raw material manufacturing to reduce imports This initiative aims to boost Mexico’s health sovereignty, lower medicine costs, and generate jobs. Government officials emphasized that the pharma sector holds major potential for fast economic growth and technological self-sufficiency under Sheinbaum’s industrial policy.
Source: LA JORNADA
BYD SUSPENDS INVESTMENT IN MEXICO
Chinese automaker BYD has canceled its plans to build a manufacturing plant in Mexico due to rising uncertainty over US tariff policies and geopolitical tensions, particularly under Donald Trump’s administration. Furthermore, the decision highlights how external political pressures can influence global investments could show unceirtanty on Mexico's reliability as a manufacturing player in North America. Also, this could set a precedent that could put tension on future investments in Mexico, especially from countries facing trade issues with the US
Source: EL ECONOMISTA
NEWMEMBERSOFNUEVO LEON'sCABINET
As off today, Betsabé Rocha Nieto was appointed as the new Secretary of the Economy of Nuevo León Her focus will include the support for new investments, economic equality, support for entrepreneur women, and innovation Also, Miguel Angel Flores, Juan Paura, and Javier Navarro were appointed to be part of Governor Samuel Garcia's New Cabinet Members
Source: EL NORTE
Legislativeand RegulatoryIssues:
PUBLIC SECURITY
Decree Bill Discussion Report to Issue the Law of the National Investigation and Intelligence System on Public Security
Presented by: Joint Committees on Public Security; Legislative Studies
Objective: Create a legal framework for coordinating criminal intelligence and investigation nationwide. Strengthens data systems, protects information, ensures human rights compliance, and formalizes cooperation among institutions.
Status: 2025-07-01 – Approved, sent to the Federal Executive
TELECOMMUNICATIONS
Decree to Issue The Law on Telecommunications and Broadcasting
Presented by: Senate of the Republic
Objective: Establish comprehensive regulations on telecommunications, broadcasting, and satellite use to improve service quality, promote competition, expand connectivity, and protect user rights.
Status: 2025-07-01 – Approved, sent to the Federal Executive
FINANCIAL
Bill With Decree to Amend the Federal Law for the Prevention and Identification of Operations With Resources of Illicit Origin,
Presented by: Senate of the Republic
Objective: Improves anti-money laundering and counterterrorism financing regulations by updating definitions, strengthening oversight, mandating risk-based approaches, and enhancing inter-agency coordination.
Status: 2025-06-30 – Approved, sent to the Federal Executive
ECONOMIC
Bill With Decree to Amend the Federal Economic Competition Law and the Federal Law on State-owned Entities
Presented by: Senate of the Republic
Objective: Proposes key reforms to strengthen antitrust enforcement, including the creation of a new National Antitrust Commission, adjustments to regulatory frameworks, enhanced powers and procedures to combat monopolies.
Status: 2025-06-30 – Approved, sent to the Federal Executive
NOTE:
These initiatives were presented during the Extraordinary Period by the Permanent Commissions. Meaning that they would have to be referred to Congress on the next Legislative Period if they were to be approved.
