February 20th, 2026
HotTopics
MEXICO AND CANADA PREPARE ECONOMIC INTEGRATION PLAN
Mexico and Canada have begun drafting a bilateral action plan to be unveiled in the second half of the year, aimed at deepening economic integration
According to Secretary of Economy Marcelo Ebrard, the initiative seeks to provide a long-term strategic vision and reduce regulatory uncertainty while protecting supply chains and facilitating investment. The action plan was presented in the context of the visit to Mexico by Canadian Trade and Intergovernmental Affairs Minister Dominic LeBlanc, accompanied by a delegation of 400 Canadian companies. The trip had the objective of accelerating business cooperation and reinforcing the security collaboration Also, the Business Coordinator Council (CCE) signed a memorandum of understanding with the Business Council of Canada to strengthen investment and productive integration
Separately, President Claudia Sheinbaum met with LeBlanc and the Canadian delegation to discuss trade ties and expanded Canadian investment in Mexico
Sheinbaum said the visit follows up on commitments made with Prime Minister Mark Carney during his previous trip to Mexico
The initiative reflects a strategic reinforcement of the bilateral relation between Mexico and Canada, in a context of uncertainty regarding the USMCA’s review.
Source: EL FINANCIERO, LA JORNADA
US OPEN TO ADJUSTING STEEL AND ALUMINUM TARIFFS
The administration of Donald Trump signaled it is open to modifying how steel and aluminum tariffs are applied, though it will maintain the 50 percent duties imposed last year. U.S. Trade Representative Jamieson Greer said adjustments could be made to ease compliance burdens on companies, following pressure from business groups and trading partners President Sheinbaum confirmed that Secretary of Economy Marcelo Ebrard was informed of possible changes, though no formal proposal has been issued. Sheinbaum reiterated that Mexico has consistently requested a review, particularly given the impact on integrated supply chains and inflationary pressures.
Source: EL UNIVERSAL
SHEINBAUM SETS DATE TO UNVEIL ELECTORAL REFORM
President Claudia Sheinbaum announced that she will formally present her electoral reform initiative on February 24th, during her morning press conference at the National Palace, coinciding with Mexico’s Flag Day. The proposal will then be sent to Congress for legislative debate.
According to Sheinbaum, the initiative seeks to strengthen democracy while reducing the costs of the electoral system. Among its main objectives are cutting election-related spending, reviewing public financing for political parties, expanding citizen participation and facilitating voting for Mexicans living abroad.
Her announcement follows the circulation of a purported draft on social media suggesting an increase in the number of federal lawmakers. Sheinbaum rejected the document as unofficial and outdated. With this, the debate over the political implications of the reform is expected to intensify in the coming weeks.
Source: EL ECONOMISTA
HotTopics
MEXICO RANKS AS TOP U.S. TRADE PARTNER IN 2025
The latest annual data from the U.S. Census Bureau show that in 2025 Mexico consolidated its position as the United States’ leading trade partner, top export destination and largest supplier.
According to year-to-date figures, total trade between Mexico and the U.S. reached $872.8 billion, representing 15.6% of total U.S. global trade Of that amount, U S exports to Mexico totaled $338.0 billion 15.5% of all American exports making Mexico the number one destination for U S goods
On the import side, the U.S. purchased $534.9 billion in Mexican products, accounting for 15 7% of total U S imports and positioning Mexico as its primary supplier. Behind these figures lies a deeply integrated economic relationship that sustains growth, manufacturing output and employment. Supply chains across key industries operate in a highly interconnected manner, reinforcing North America’s competitiveness. Mexico’s top ranking across all three major trade categories underscores its central role in the North American economy and highlights the strategic importance of maintaining stable bilateral trade ties amid global economic uncertainty.
Source: US CENSUS BUREAU
EU TO SIGN MODERNIZED DEAL WITH MEXICO
The European Union expects to sign its modernized Global Agreement with Mexico before June, as both sides work “at triple speed” to complete the diplomatic and political procedures required, EU Ambassador to Mexico Francisco André said Under the updated accord, 99% of the remaining tariff lines between Mexico and the EU would be eliminated upon entry into force, with the rest phased out over time. André framed the modernization as a tool to reduce trade barriers, streamline customs cooperation and adapt rules to global economy The modernization of the treaty, was first negotiated in 2016-2018, but is yet to be ratified Since it was signed in 2000, bilateral trade has nearly doubled, and the EU has become Mexico’s third-largest trading partner
Overall, this new wave of interest of modernizing the treaty is seen as a strategy from the Mexican government to diversify their markets
Source: FORBES
FOUR IN TEN CEOs SCALE BACK INVESTMENT PLANSINMEXICO
Nearly half of global CEOs operating in Mexico have reduced their investment plans for 2026, according to the Mexico chapter of the annual Global CEO Survey by PwC The report found that 46% of executives opted to scale back large-scale investments due to uncertainty linked to tariffs and broader trade tensions.
The proportion is notably higher than the global average, where 32% of CEOs reported cutting investment expectations. In Mexico, 41% said they are maintaining their investment plans unchanged, compared with 54% worldwide. When companies do invest, the United States remains the primary destination.
Still, PwC noted that concerns have not been paralyzing, as most companies are not planning deep changes to their commercial or tax strategies.
Looking ahead to the upcoming review of the United States–Mexico–Canada Agreement (USMCA), PwC described the moment as decisive for North American trade, warning that prolonged uncertainty could weigh on investment and supply chains.
Source: EL ECONOMISTA
Legislativeand RegulatoryIssues:
TRADE
Initiative Amending Articles Of The Law On The Approval Of International Treaties In Economic Matters
• Presented by: Parliamentary Group of the National Action Party (PAN)
• Objective: Strengthens Senate oversight in negotiating and approving economic international treaties by requiring alignment with national development plans, authorizing public hearings and open parliament mechanisms.
• Status: Published in the Parliamentary Gazette on February 17, 2026
Initiative Amending The Customs Law And The Foreign Trade Law to Prevent Importation Of Goods Linked to Child Labor
• Presented by: Dep Ricardo Madrid Pérez (PVEM)
• Objective: Establishes customs measures to block imports linked to the worst forms of child labor, authorizing precautionary actions including retention, seizure, immobilization, evidence collection, and supply chain verification, while allowing importers to present evidence within ten business days to demonstrate compliance with human rights-based trade restrictions
• Status: Published in the Parliamentary Gazette on February 18, 2026.
ENVIRONMENTAL
Initiative with Draft Decree Amending the General Climate Change Law, Regarding Measurement and Reduction of Carbon Footprint
• Presented by: Dep Israel Betanzos Cortés (PRI)
• Objective: Promotes adoption of clean technologies and sustainable processes to reduce carbon footprints, empowers the National Institute of Ecology and Climate Change to manage a National Carbon Footprint Registry, and mandates coordinated fiscal and financial incentives to encourage voluntary emissions reduction projects and registry participation.
• Status: Published in the Parliamentary Gazette on February 18, 2026
LABOR
Initiative with Amending the Federal Labor Law, Regarding Prohibition of Unjustified Requirement of Criminal Record Certificates
• Presented by: Sen Juan Carlos Loera (MORENA)
• Objective: Prohibits employers from requiring criminal record certificates as a condition for hiring, retention, or promotion, except where expressly justified by law
• Status: Published in the Parliamentary Gazette on February 18, 2026.
Initiative Amending the Federal Labor Law And the Income Tax Law to Establish Incentives for Companies Implementing Flexible Schemes Without Overtime Pay
• Presented by: Dep José Guillermo Anaya (PAN)
• Objective: Establishes certified labor flexibility schemes without generating overtime. Grants a tax incentive allowing a deduction equivalent to 20% of taxable income for companies adopting flexible schedules without overtime Allows full deductibility of wages and related labor costs for Mipymes during fiscal years 2027–2030
• Status: Published in the Parliamentary Gazette on February 18, 2026.
