Weekly Report - 10.07.26

Weekly Report July 10th, 2026

Hot Topics US-MEXICO RESURFACE

SECURITY

TENSIONS

A new diplomatic dispute has emerged between Mexico and the United States over the July 2024 capture of Sinaloa Cartel co-founder Ismael "El Mayo" Zambada after the FBI donated the aircraft used to transport him to a museum in New Mexico, describing it as part of a successful operation against organized crime. Mexican authorities argue this contradicts previous assurances from former US Ambassador Ken Salazar that no US aircraft, personnel, or prior operational knowledge were involved. President Sheinbaum and the Attorney General's Office (FGR) have accused US authorities of providing incomplete information and requested further clarification. The controversy has also renewed attention on Sinaloa Governor Rubén Rocha Moya, who is on leave after being indicted by the US Department of Justice on charges of conspiring with the Sinaloa Cartel. President Sheinbaum rejected speculation that the federal government was protecting Rocha.

The case has become significant because, if US authorities conducted or facilitated the operation inside Mexican territory without authorization, it would reinforce Mexico's argument that the action constituted an unacceptable intervention and a violation of its sovereignty. The dispute is likely to remain a sensitive issue in bilateral security cooperation, particularly as both governments seek closer coordination against organized crime while managing longstanding concerns over jurisdiction, intelligence sharing, and respect for national sovereignty.

Source: LA JORNADA, EL FINANCIERO

MEXICO, SWITZERLAND AGREE MODERNIZE TRADE RELATIONSHIP

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Swiss President Guy Parmelin paid an official visit to Mexico, where he met with President Sheinbaum to strengthen bilateral economic ties and launch discussions to modernize the Mexico–European Free Trade Association (EFTA) Free Trade Agreement, which has been in force for 25 years. Both governments reaffirmed their commitment to expanding trade, investment, and cooperation in areas including manufacturing, science, innovation, education, environmental protection, and cultural heritage.

Also, the Ministry of Economy met with Parmelin, the Swiss ambassador, and representatives from 30 Swiss companies, which announced plans to invest US$4 billion in Mexico during the Sheinbaum administration, targeting sectors including pharmaceuticals, agribusiness, infrastructure, shipping, technology, research and development, and manufacturing. The visit reinforces Mexico's strategy of diversifying trade and investment partnerships beyond North America.

Source: FORBES, MILENIO

USMCA REVIEW TALKS ADVANCE AHEAD OF JULY NEGOTIATIONS Secretary of Economy, Marcelo Ebrard, traveled to Washington to prepare for the next round of bilateral USMCA review negotiations, scheduled for the week of July 20 in Mexico City. According to a report submitted by the Ministry of Economy to the Senate, Mexico will present 13 trade concerns during the upcoming talks, including US Section 232 tariffs on steel, aluminum and automotive products, Section 122 measures, state-level trade barriers, labor enforcement issues, and other restrictions considered inconsistent with the agreement.

Mexico will also prioritize resolving steel tariffs, preserving automotive competitiveness, preventing unilateral trade measures, strengthening North American supply chains, and promoting regional investment in semiconductors, pharmaceuticals, electronics and advanced manufacturing.

The upcoming discussions will be critical in defining how the new annual review mechanism operates while addressing longstanding trade disputes.

Sources: FORBES, EL FINANCIERO, SENATE

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Hot Topics MEXICO ESCALATES LEGAL RESPONSE OVER MIGRANT DEATHS IN US CUSTODY

MEXICO RETURNS TO TOP 10 FOR FOREIGN DIRECT INVESTMENT AS ECONOMIC INDICATORS IMPROVE Mexico ranked among the world's ten largest recipients of foreign direct investment (FDI) in 2025, attracting a record US$41 billion and returning to the global top ten, according to UNCTAD's World Investment Report 2026.

During President Sheinbaum's daily press conference, Secretary of Finance, Edgar Amador, highlighted the result as evidence of investor confidence in Mexico's macroeconomic stability, while the President pointed to additional positive indicators, including record exports, historically high formal employment, strong wage growth, rising industrial activity, and Mexico's position as the United States' largest trading partner.

Additional economic data reinforced this positive outlook. Inflation fell for the third consecutive month to 3.37% year-over-year in June, its lowest level since December 2020, while consumer prices declined 0.27% monthover-month—the largest June decrease on record. The moderation was driven primarily by lower agricultural prices, particularly fruits and vegetables, although analysts cautioned that services inflation remains relatively persistent and that geopolitical and weatherrelated risks could still generate price pressures later this year.

Source: EL ECONOMISTA, EL FINANCIERO

Ministrer of Foreign Affairs, Roberto Velasco, said Mexico will move beyond diplomatic protests by filing criminal complaints with US state prosecutors and the Department of Justice over 17 deaths recorded during the current US administration. The decision follows the fatal shooting of Mexican national Lorenzo Salgado, during an ICE operation in Houston, which President Sheinbaum described as a homicide.

Mexico will also pursue civil actions against private companies operating ICE detention centers, seek precautionary measures before the Inter-American Commission on Human Rights, and request UN intervention to strengthen protections for detained Mexican nationals.

While the legal actions are unlikely to immediately alter US immigration policy, they increase political and diplomatic pressure over detention conditions and the treatment of Mexican nationals.

Source: RELACIONES EXTERIORES, LA TIMES

EU APPROVES MODERNIZED TRADE AGREEMENT WITH MEXICO The European Parliament approved the modernization of the EU-Mexico Global Agreement, marking a significant step toward replacing the trade framework in force since 2000. Secretary of Economy Ebrard, said the agreement could enter into force before the end of 2026, pending ratification by EU member states and the Mexican Senate.

By improving access to the EU—Mexico's third-largest trading partner and second-largest source of foreign investment—the updated framework could reduce manufacturers' dependence on the US market while creating new opportunities for export-oriented industries, strengthening the country's resilience.

Sources: EL FINANCIERO

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Legislative and Regulatory Issues: LABOR

PUBLIC ADMINISTRATION

ENVIRONMENT

Initiative Amending Article 86 of the Federal Labor Law on Pay Equality • Presented by: Chamber of Deputies – Rocío Adriana Abreu Artiñano (MORENA) • Objective: Requires legally incorporated companies employing more than fifty workers to undergo labor authority verification of pay equality, based on business size classifications established by the Ministry of Economy. The initiative seeks to strengthen enforcement of equal pay principles and promote greater workplace gender equality through mandatory compliance reviews.

• Status: Published in the Parliamentary Gazette – July 8, 2026.

First Resolution Amending the 2026 General Tax Rules • Presented by: Ministry of Finance and Public Credit (SHCP) • Objective: Introduces various amendments to the 2026 General Tax Rules, updating tax compliance provisions, administrative procedures, and regulatory requirements applicable to taxpayers. The resolution seeks to clarify, adjust, and streamline the implementation of tax obligations and administrative processes under Mexico’s federal tax framework during the 2026 fiscal year.

• Status: Published in the Official Gazette (DOF) – July 9, 2026.

Initiative Issuing the General Law on Emissions Regulation and Carbon Credits • Presented by: Chamber of Deputies – Jesús Irugami Perea Cruz (MORENA) • Objective: Creates a national framework regulating greenhouse gas emissions through non-transferable carbon emission permits and certified carbon credits. The initiative establishes digital permit auctions, promotes carbon capture, ecological restoration, and energy transition projects, while creating the National Greenhouse Gas Emissions and Carbon Credits Regulation System to progressively reduce emissions nationwide.

• Status: Published in the Parliamentary Gazette – July 8, 2026.

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.

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