March 20th, 2026
HotTopics
MEXICO AND U.S. BEGIN FORMAL TALKS
AHEAD OF USMCA REVIEW
Mexico and the US held initial bilateral discussions to prepare for the upcoming review of the USMCA, focusing on strengthening regional manufacturing and supply chains During meetings in Washington, Secretary of Economy Marcelo Ebrard and U.S. Trade Representative Jamieson Greer agreed to evaluate policy options to increase manufacturing output and employment in both countries, while limiting the use of inputs associated with unfair trade practices. Technical teams from both governments also analyzed gaps in key North American supply chains and explored measures to enhance economic security, including adjustments to rules of origin and complementary trade actions. The discussions form part of a broader process leading to the formal joint review scheduled for July 1st , with both sides committing to regular meetings and deliverables. Officials highlighted the scale of bilateral integration, noting that around 40% of Mexico’s exports to the United States include U.S.-made inputs, and that some goods cross the border multiple times during production. The region represents nearly 30% of global GDP and supports highly interconnected industrial activity The outcome of these early discussions suggests that both governments are prioritizing deeper regional integration and supply chain resilience, although tensions over tariffs and rules of origin could shape the pace and scope of negotiations in the months ahead.
Source: LA JORNADA, EXPANSIÓN
SHEINBAUM PRESENTS NEW ELECTORAL“PLAN B” REFORM
Mexico’s Senate received President Claudia Sheinbaum’s electoral “Plan B” reform, following the rejection of her initial constitutional proposal. The proposal will now follow the ordinary legislative process in the Senate The initiative seeks to reduce political and electoral costs by capping salaries of party leaders and electoral authorities, strengthening financial oversight of campaign resources, and introducing austerity measures across the National Electoral Institute It also includes gradual budget reductions for the Senate and tighter controls on public spending.
The shift to a “Plan B” strategy reflects a pragmatic adjustment by the administration to secure legislative approval after failing to maintain full coalition support
Source: EL ECONOMISTA
BANKING CONVENTION HIGHLIGHTS GOVERNMENT PRIORITIES
Mexico’s 89th Banking Convention began in Cancún, bringing together more than 1,200 financial leaders alongside top government officials to discuss macroeconomic conditions, financial regulation, and digitalization The event serves as the country’s leading annual forum for coordination between the financial sector and policymakers.
The convention has featured the participation of key authorities, including President Claudia Sheinbaum, Finance Minister Édgar Amador Zamora, and Central Bank Governor Victoria Rodríguez Ceja, underscoring the strategic importance of the banking sector for economic policy. Discussions have focused on expanding access to financing, strengthening financial inclusion, and supporting productive investment During the inauguration, Sheinbaum called on banks to increase lending and welcomed commitments from the banking sector to raise credit levels from 38% to 45% of GDP. The president also pointed to ongoing USMCA negotiations as a positive signal, despite a more complex global environment
Source: EL UNIVERSAL
HotTopics
MEXICO AND GERMANY HIGHLIGHT EU TRADE DEAL AND INVESTMENT TIES
President Claudia Sheinbaum met with German President Frank-Walter Steinmeier in Cancún, where both leaders emphasized the strategic importance of concluding the updated trade agreement between Mexico and the European Union. The modernization of the EU–Mexico Global Agreement is expected to be finalized in the coming months and was described as a key opportunity to expand bilateral trade and investment flows
A central focus of the meeting was the role of German companies in Mexico, with Sheinbaum noting that more than 2,000 German firms currently operate in the country. Both sides agreed to continue strengthening these investment ties, particularly in manufacturing and high-value industries.
The leaders also underscored their shared commitment to rules-based trade and multilateral cooperation.
The renewed focus on the EU deal suggests Mexico is actively seeking to diversify its trade partnerships and reduce overreliance on the United States, while leveraging European investment particularly from Germany to upgrade industrial capacity and reinforce its position in global value chains
Source: EL FINANCIERO
MEXICO REAFFIRMS SOVEREIGNTYBASED SECURITY COOPERATION WITH THE U.S.
Mexico’s Ministry of Foreign Relations (SRE) issued a statement underscoring that bilateral security cooperation with the United States is grounded in respect for sovereignty, shared responsibility, mutual trust, and cooperation without subordination. The document emphasized that the relationship has reached historically high levels of collaboration, particularly in addressing drug and arms trafficking challenges affecting both countries This reinforces Mexico’s position amid recent U S rhetoric on unilateral security actions, signaling that while bilateral cooperation remains strong and results-oriented, the government will continue to prioritize sovereignty and institutional control over any joint security efforts.
Source: FOREIGN AFFAIRS MINISTRY
MEXICO TO DEPLOY BUSINESS MISSION TO CANADATO BOOSTINVESTMENTTIES
Mexico’s Ministry of Economy announced that a business delegation will travel to Canada in May to strengthen trade and investment ties across key sectors. The mission, scheduled for May 7–9, will focus on building commercial partnerships, technological collaboration, and new investment opportunities.
Secretary of Economy, Marcelo Ebrard, stated that the initiative follows recent agreements between President Claudia Sheinbaum and Canadian Prime Minister Mark Carney, and is intended to reciprocate a recent Canadian business delegation visit to Mexico. The government aims to ensure broad participation from Mexican companies of all sizes, with applications open through mid-April.
This reflects Mexico’s intentions to continue reinforcing trade relationships with Canada ahead of the upcoming USMCA review.
Source: EL ECONOMISTA
Legislativeand RegulatoryIssues:
PUBLIC ADMINISTRATION
Initiative Amending the Constitution to Reduce Privileges and Strengthen Recall Elections
• Presented by: Federal Executive
• Objective: This reform strengthens citizens’ right to participate in presidential recall elections, establishes clear timelines and voting procedures, and prohibits the use of public resources or government propaganda in such processes. It also introduces limits on local legislative budgets and regulates municipal governance structures.
• Status: Published in the Parliamentary Gazette on March 17, 2026
Initiative with Draft Decree Amending the General Law of Electoral Institutions
• Presented by: Federal Executive
• Objective: The initiative mandates financial authorities to share timely information with the electoral authority for oversight purposes, including financial operations and assets of political actors. It also establishes earlier initiation of vote counts and imposes strict limits on compensation and benefits for electoral officials
• Status: Published in the Parliamentary Gazette on March 17, 2026
PUBLIC ADMINISTRATION
Initiative with Draft Decree Amending the General Law of Political Parties
• Presented by: Federal Executive
• Objective: This reform enhances transparency and accountability by requiring political parties to disclose all compensation paid to their members and staff on a quarterly basis It strengthens financial oversight by mandating full reporting of income and expenditures, prohibiting illicit or foreign funding.
• Status: Published in the Parliamentary Gazette on March 17, 2026
Initiative Enacting the Law for Promoting Investment in Strategic Infrastructure for Development
• Presented by: Federal Executive
• Objective: Establishes a legal framework to regulate investments in strategic infrastructure projects It regulates strategic investment contracts, and establishes a permanent advisory council to define technical criteria and provide recommendations to guide infrastructure development and long-term economic planning.
• Status: Published in the Parliamentary Gazette on March 19, 2026
ENVIRONMENTAL
Initiative with Draft Decree Amending the Law of Business Chambers and Their Confederations
• Presented by: Sen. Maki Esther Ortiz (PVEM)
• Objective: This initiative incorporates circular economy principles and extended producer responsibility into the framework governing business chambers. It mandates these organizations to promote sustainable practices among their members and enables the use of national business information systems to support data collection, traceability, and dissemination related to circular economy initiatives.
• Status: Published in the Parliamentary Gazette on March 18, 2026
Initiative with Draft Decree Amending the Law to Promote Sustained Productivity and Competitiveness of the National Economy
• Presented by: Sen Maki
Esther Ortiz (PVEM)
• Objective: Introduces a national policy to promote economic development through the adoption of circular economy principles
• Status: Published in the Parliamentary Gazette on March 18, 2026
