August 29-September 5, 2025
Hot Topics
MARCORUBIOVISITSPRESIDENT SHEINBAUMINMEXICOCITY
On September 3, 2025, US Secretary of State Marco Rubio met with President Sheinbaum in Mexico City, focusing on bilateral cooperation in border security The meeting, held amid US tariff pressures and upcoming USMCA renegotiations, resulted in agreements on migration control, combating fentanyl trafficking, disrupting organized crime, and illegal arms trafficking. Both governments reaffirmed cooperation under respect for sovereignty, establishing a high-level implementation group to monitor progress. Politically, this could strengthen Mexico’s negotiating position by securing US recognition of its security advances, while highlighting shared responsibility for drug and arms issues
Source: The New York Times
PRESIDENTSHEINBAUM HOLDS HERFIRSSTATE OFTHE UNION
Eleven months into her presidency, Claudia Sheinbaum delivered her first State of the Union, highlighting legislative, economic, social, and foreign policy achievements. Her administration approved 19 constitutional reforms and 40 laws, including judicial reform, integration of the National Guard into the Defense Ministry, and energy sector amendments strengthening PEMEX and CFE. Annual economic growth reached 1.2%, with foreign investment at $36 billion, inflation at 3 5%, and poverty reduced to 29 5%, while minimum wages rose 135% since 2018 Sheinbaum emphasized social programs and welfare initiatives benefiting millions of families, and health expansions including hospitals, and clinics. Infrastructure investments totaled $121.5 billion pesos, advancing transport, energy, and water projects. She affirmed Mexico’s strong relationship with the US under the USMCA and initiatives supporting migrants abroad. While noting progress in equality and economic resilience, she acknowledged insecurity remains a central challenge, setting the stage for continued reforms and development in her administration’s second year Lastly, a new Judiciary Power just took office, making MORENA in full control of all three branches of the Government
Source: IMCO
THE UPCOMING REFORMS OF THIS LEGISLATIVE PERIOD
Mexico’s new legislative period began on September 1st with President Claudia Sheinbaum’s first State of the Union. Congress will prioritize the 2026 Economic Package and anti-extortion reforms, leaving labor initiatives, like the 40-hour workweek, as less of a priority during this new period. In contrast, the key focus is comprehensive customs reform, to be disclosed in the September 8 package Customs generate 25 6% of tax revenue but face widespread evasion The reform will digitalize processes, strengthen oversight, and impose joint responsibility on brokers Businesses may face higher compliance costs, but the goal is fairer competition and modernized trade
Source: El Financiero
Hot Topics
MEXICAN EXPORTS TO THEUS SHOW RECORDNUMBERSIN JULY
In July 2025, Mexican exports to the United States reached a record $45.37 billion, representing 15.5% of total US imports and surpassing both Canada and China Notably, 85% of these exports utilized USMCA rules of origin, reflecting increased compliance and the strategic importance of the trade agreement This surge comes ahead of upcoming USMCA negotiations, strengthening Mexico’s leverage with the US government. To further protect domestic industries and leverage negotiations, Mexico plans to announce tariffs on Chinese textiles, signaling a commitment to fair trade and alignment with US priorities. These measures aim to maintain Mexico’s leading position in US trade, secure preferential access under USMCA, and encourage sustained compliance among exporters while addressing global competitive pressures
Source: El Financiero
CONAGUA ANNOUNCES STRATEGIC WATER PROYECTS
Conagua announced 17 strategic water projects to secure long-term supply, sanitation, and flood prevention. Eight projects are underway, including aqueducts and flood control works, while others, such as the Rosarito desalination plant, are planned or in preparation. Conagua will also regularize expired concessions, ensuring sustainable water access nationwide On a similar note, Mexican Foreign Minister Juan Ramón de la Fuente met with Texas Senator Ted Cruz to discuss bilateral issues, focusing on MX-US water agreements, possibly solving the water disputes between the two countries
Source: CONAGUA
OPPOSITION SECURES THE HEAD OF THE CHAMBER OF DEPUTIES
Congress began its new legislative year with a shift as opposition lawmaker Kenia López Rabadán (PAN) was elected president of the Chamber of Deputies, despite Morena’s attempts to delay the process This could give the opposition a strategic force in Congress. While López Rabadán has pledged institutional leadership, her position could serve as a counterbalance to the ruling party’s dominance, particularly in overseeing debates and managing resources.
Source: El País
CONGRESS: NEW PRESIDENT OF THE FINANCE & PUBLIC CREDIT COMMISSION
Morena deputy Carol Altamirano was elected president of the Finance and Public Credit Commission, which will review the 2026 Economic Package starting September 8 He seeks to support President Sheinbaum’s economic policies while considering all proposals that strengthen public finances and economic justice.
Source: Proceso
Legislativeand RegulatoryIssues:
LABOR
Initiative With Draft Decree To Amend Section Iv Of Part A Of Article 123 Of The Political Constitution Of The United Mexican States
• Presented by: Congress of the State of Baja California
• Objective: Establish that for every forty hours of work, employees are entitled to at least one full day of paid rest.
• Status: 2025-09-02 –Published in the Parliamentary Gazette
Initiative With Draft Decree To Amend And Add Various Provisions To The Law For The Development Of The Competitiveness Of Micro, Small, And Medium-sized Enterprises
• Presented by: Deputy Juan Carlos Valladares Eichelmann (SLP - PVEM)
• Objective: Strengthen MSMEs through digitalization, inclusion, and adaptation to labor reform and global competitiveness trends.
• Status: 2025-08-27 –Published in the Parliamentary Gazette
FISCAL
Initiative With Draft Decree To Amend Article 33 Of The Law Of Fiscal Coordination, Regarding Digital Infrastructure And Universal Access To Information And Communication Technologies
• Presented by: Dip. Luis Orlando Quiroga Treviño (NL - PVEM)
• Objective: Allocate resources from the Fund for Municipal Social Infrastructure and the Territorial Demarcations of Mexico City to basic infrastructure for information technologies, telecommunications, and broadband Internet access.
• Status: 2025-08-27 –Published in the Parliamentary Gazette
PERSONAL DATA
Initiative With Draft Decree To Amend Article 63 Of The Federal Law On Protection Of Personal Data Held By Private Parties
• Presented by: Senator Saúl Monreal Ávila (ZacMORENA)
• Objective: Establish penalties of three months to three years imprisonment and fines of 100 to 300 days of the general minimum wage in Mexico City for data controllers who, knowing of a personal data breach, fail to notify affected individuals and the National Institute for Transparency, Access to Information, and Personal Data Protection (INAI) within the legal timeframe.
• Status: 2025-09-01 –Published in the Parliamentary Gazette
