November 7th, 2025
HotTopics
ASSASSINATION OF URUAPAN MAYOR SHIFTS NATIONALPOLITICALAGENDA
The murder of the Mayor of Uruapan, Carlos Manzo, during a public Day of the Dead celebration has become the dominant political issue of the week in Mexico, sparking protests in Michoacán and other states and intensifying scrutiny of the federal government’s security strategy. The incident comes amid rising concerns over violence against local officials The National Conference of Governors (Conago) issued a unified statement reaffirming support for President Claudia Sheinbaum, while opposition parties, accused the administration of failing to curb violence, arguing that the murder underscores a wider pattern of state fragility.
In this context, U S Deputy Secretary of State Christopher Landau offered expanded cooperation to combat organized crime, to which Secretary of Security Omar García Harfuch responded that Mexico is open to all information-sharing efforts with foreign agencies.
The event places new pressure on the federal government to deliver rapid security results, especially as international partners, such as the U.S. government, and domestic critics frame the case as evidence of a deteriorating national security environment.
Source: EL ECONOMISTA
SHEINBAUM MEETS WITH U.S. SECRETARY OF AGRICULTURE
President Claudia Sheinbaum met with U.S. Secretary of Agriculture Brooke Rollins to review bilateral cooperation in the agri-food sector and related trade issues. Both delegations emphasized the reopening of the border for livestock exports as a top priority, while reaffirming their commitment to maintaining collaboration This could help ease tensions in rural sectors affected by U.S. tariff policies, while signaling Mexico’s intent to deepen coordination in food security
Source: EL ECONOMISTA
PRESIDENT TRUMP PLANS TROOP DEPLOYMENT TO MEXICO
According to an NBC report, U.S. President Donald Trump is preparing a mission involving U S troops and intelligence officers in Mexico to combat drug smuggling cartels. In response, President Sheinbaum reaffirmed that the U S will not be permitted to deploy military forces and reiterated that cooperation, not intervention, remains the basis of bilateral security relations The Mexican government’s rejection of a foreign military presence underscores its emphasis on national autonomy, but the dialogue on cross-border collaboration is likely to intensify, especially considering that this week security has become the main topic in the political agenda The situation may force Mexico to clarify the balance between partnership with the U S and independent security policymaking
Source: LA JORNADA
SHEINBAUM MAINTAINS HIGH APPROVAL IN OCTOBER
President Claudia Sheinbaum closed October with a 71 5% approval rating, according to the latest Mitofsky survey. Support remains strongest among informal workers, while backing from the business sector is notably lower Nonetheless, it is important to note that the current security crisis poses a clear risk to Sheinbaum’s standing for the upcoming months, even among groups that currently show high support
Source: FORBES
HotTopics
BUDGET APPROVED WITH CUTS TO AUTONOMOUS BODIES
On Thursday, the Chamber of Deputies approved the 2026 Federal Expenditure Budget, maintaining total spending at just over MXN 10.1 trillion, a 5.9% real increase from 2025 Lawmakers approved reallocations of MXN 17.79 billion without altering the overall ceiling proposed by the Finance Ministry The largest cuts target autonomous institutions: the Judiciary absorbed a MXN 15.8 billion reduction, including the Supreme Court and the new Judicial Administration Body, while the INE, Electoral Tribunal, FGR, and CNDH also faced decreases. Most of the reallocated funds were redirected to education, science and technology, culture, environmental protection, and labor-related institutions
Morena leaders defended the budget as fiscally responsible, while opposition parties protested the exclusion of their proposals and criticized the reductions as politically motivated, particularly in areas tied to institutional checks on the federal government and security.
The approved budget reflects the administration’s priorities: social spending, education, and strategic public investment.
Source: EL FINANCIERO
US CEOs PRESS TO LIFT TARIFFS AS SUPREME COURTQUESTIONSTRUMP’SIEEPAAUTHORITY
More than 200 U S CEOs from the Business Roundtable urged the Trump administration to remove Section 232 and IEEPA tariffs on Mexico and Canada, warning they are weakening North American supply chains and cutting regional trade.
The issue gained further weight this week as U.S. Supreme Court justices, from both conservative and liberal agendas, challenged Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs The Court fast-tracked the case, meaning a ruling could arrive before the end of the year, potentially reshaping Trump’s trade tools.
The legal scrutiny of IEEPA and the corporate push against tariffs could strengthen Mexico’s negotiating position ahead of the 2026 USMCA review. If the Court rules against Trump, Washington would lose a key leverage mechanism, opening the door to restoring tariff-free trade in North America. But, for now, uncertainty continues to weigh on investment and supply-chain planning across the region.
Source: EL ECONOMISTA
MEXICO PREPARES TARIFFS ON NON-FTA COUNTRIES
The Economy, Trade and Competitiveness Commission of the Chamber of Deputies is expected to vote in late November or early December on a reform to the General Import and Export Tax Law (LIGIE) that would raise tariffs on 1,463 product classifications from countries without free trade agreements with Mexico The bill is likely to be approved before the December 15 close of the legislative session
The timing also reflects pressure from manufacturers concerned about Chinese imports, as well as ongoing geopolitical trade tensions following the recent U S –China talks
Source: EL ECONOMISTA
Legislativeand RegulatoryIssues:
PUBLIC ADMINISTRATION
Draft Decree of the Federal Expenditure Budget for Fiscal Year 2026
• Presented by: Budget and Public Accounts Committee
• Objective: To approve the Federal Expenditure Budget for 2026, establishing total net spending of MXN 10 19 trillion and a projected budget deficit of MXN 1.39 trillion, to be submitted to the Federal Executive for enactment
• Status: 2025-11-04 –Approved, sent to the Federal Executive
FINANCIAL
Point of Agreement on Mechanisms to Guarantee Bank Account Opening for Simplified Joint Stock Companies (SAS)
• Presented by: Sen Néstor Camarillo Medina (MC)
• Objective: To urge Banxico, ASOFOM, and FinTech México to enable fast, secure, and accessible bank account opening for SAS companies, and to request the Ministry of Economy to publish an updated registry of financial institutions offering such services
• Status: 2025-11-05 –Published in the Parliamentary Gazette
LABOR
Bill with Draft Decree Amending and Adding Several Provisions to the General Health Law on Occupational Vocal Health
• Presented by: Sen. Rolando Rodrigo Zapata Bello (PRI)
• Objective: To update the legal framework on occupational health by defining it as the set of actions that protect workers’ physical, mental, and social well-being, and by empowering the Ministry of Health to regulate substances, equipment, exposure limits, and workplace sanitary controls, with emphasis on reducing risks for personnel exposed to hazardous materials
• Status: 2025-11-04 –Published in the Parliamentary Gazette
Bill with Draft Decree Amending Various Articles of the Federal Labor Law
• Presented by: Sen. Claudia Edith Anaya Mota (PRI)
• Objective: To require that at least three percent of the Mexican workforce in every company is composed of persons with disabilities, within the existing mandate that ninety percent of employees be Mexican nationals The bill also obliges employers to provide inclusive training for workers with disabilities.
• Status: 2025-11-05 –Published in the Parliamentary Gazette
TRANSPORTATION
Bill with Draft Decree Amending Articles 34 and 36 of the Income Tax Law
• Presented by: Dep Ivonne Aracelly Ortega (MC)
• Objective: To set the maximum deductible ISR rate at 35% for the acquisition of vehicles powered by rechargeable electric batteries, hybrid electric vehicles with internal combustion engines, or hydrogen-powered vehicles, and to establish a maximum deductible amount of MXN 500,000 for related investments, including charging infrastructure.
• Status: 2025-11-04 –Published in the Parliamentary Gazette
Point of Agreement on Oversight to Prevent Cargo Vehicles from Using EmergencyLike Lights
• Presented by: Sen Luisa Cortés García (MORENA)
• Objective: To urge the National Guard and the Secretary of Infrastructure, Communications and Transportation to enforce existing regulations and prevent cargo trucks, trailers, and tankers on federal highways from installing or using flashing lights similar to those of security or emergency vehicles, in order to reduce accidents and improve road visibility
• Status: 2025-11-05 –Published in the Parliamentary Gazette
