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Weekly Report October 23rd, 2026

Hot Topics MEXICO AND U.S. MOVE "CLOSER" TO TRADE AGREEMENT ACCORDING TO BOTH PRESIDENTS President Donald Trump and President Claudia Sheinbaum said Mexico and the United States are moving closer to an agreement on outstanding bilateral trade issues. Trump said the two countries were approaching a broader trade understanding, while Sheinbaum confirmed that negotiations have advanced but several issues remain unresolved. Mexico’s principal objectives are to reduce current U.S. tariffs affecting vehicles, steel and aluminum and to obtain assurances against additional tariff measures. Sheinbaum said there is a positive attitude on both sides of the negotiations and reiterated that Mexico is seeking the most favorable possible conditions for its exports. The discussions follow several months of bilateral negotiations led by Economy Secretary Marcelo Ebrard and U.S. Trade Representative Jamieson Greer over tariffs and other trade concerns. Autos, steel and aluminum remain among the most important unresolved sectors, while Mexico continues to emphasize its preferential position relative to other U.S. trading partners. The talks are taking place alongside the broader USMCA review process, with Mexico seeking to preserve preferential access to its largest export market while addressing U.S. concerns over bilateral trade. Source: Reuters, El Financiero

GRUPO MÉXICO PLANS US$4–6 BILLION U.S. COPPER INVESTMENT Grupo México plans to invest between US$4 billion and US$6 billion over the next three years in its U.S. mining subsidiary Asarco, substantially expanding its investment in American copper production. The program includes expansion of the Ray and Silver Bell mines in Arizona and the potential restart of the Hayden smelter and refinery. The planned spending represents a significant increase compared with Asarco’s US$101 million in capital expenditures in 2024. The projects come as the United States seeks to strengthen domestic production of copper and other critical minerals used across electricity infrastructure, manufacturing, defense and advanced technologies. Grupo México is conducting feasibility studies for the projects and has indicated that restarting Hayden could restore significant U.S. copper-processing capacity. The company is also evaluating greater integration between its operations across North America. Despite uncertainty surrounding U.S. trade policy and possible tariffs, Grupo México said it intends to proceed with its U.S. investment plans. The announcement places one of Mexico’s largest industrial groups directly within Washington’s broader effort to increase domestic mineral production and reinforce U.S. supply chains for strategically important materials. Source: Reuters

SHEINBAUM DEFENDS NORTH AMERICAN INTEGRATION AMID U.S. REINDUSTRIALIZATION During her October 22 morning press conference, President Claudia Sheinbaum defended the economic integration among Mexico, the United States and Canada as the Trump administration continues pursuing a strategy to increase domestic U.S. manufacturing. She acknowledged that countries have a legitimate interest in strengthening domestic production, particularly as the United States promotes investment in sectors such as artificial intelligence. Still, she argued that decades of regional integration have created production chains that cannot easily be separated.

Sheinbaum said some products can cross the Mexico–U.S. border as many as 16 times during their production process, illustrating the degree of integration between companies and suppliers in both countries. She argued that employment and production generated in Mexico also support economic activity and jobs in the United States and Canada. According to Sheinbaum, the three countries are more competitive when operating as a North American region rather than separately, particularly when competing with other global manufacturing centers such as Asia and China. She reiterated that Mexico favors continued regional integration while preserving national sovereignty and territorial integrity, and said the existing productive relationship is difficult to dismantle after decades of increasingly interconnected supply chains. Source: Presidencia de la Républica

Hot Topics ENERGY ENTERS U.S.–MEXICO BILATERAL TRADE DISCUSSIONS President Claudia Sheinbaum confirmed that energy has been discussed directly with President Donald Trump during their bilateral conversations, including the possibility of Mexico purchasing more U.S. natural gas and greater participation by U.S. companies in projects related to Pemex. Sheinbaum rejected reports that these issues are formal conditions for reaching a trade agreement with Washington and said Mexico has explained the legal limits governing foreign participation in the country’s hydrocarbons sector. Sheinbaum said Mexico cannot grant foreign companies petroleum rights outside the framework established by Mexican law, but noted that U.S. companies can participate as Pemex contractors and through other permitted energy projects. She pointed to Sempra Energy’s liquefied natural gas operations in Ensenada as an example of existing cross-border energy integration. Natural gas is particularly important to the bilateral relationship because Mexico relies extensively on pipeline imports from the United States to supply electricity generation and industry. The discussions place energy alongside tariffs and other economic issues being addressed between the two governments, while Mexico continues emphasizing both regional economic integration and its domestic policy of energy sovereignty. Source: El Financiero

GOVERNMENT AND PRIVATE SECTOR DIFFER OVER 2027 MINIMUM-WAGE INCREASE The federal government will seek another increase in Mexico’s minimum wage for 2027 as part of its objective of raising workers’ purchasing power to the equivalent of 2.5 basic food baskets. Labor Secretary Marath Bolaños said negotiations between government, business and worker representatives will begin in November through the National Minimum Wage Commission (CONASAMI), with the final percentage expected to be determined in December. No specific increase has yet been proposed by the government. Coparmex President Juan José Sierra called for a more moderate adjustment in 2027, proposing an increase equivalent to inflation plus two percentage points. Under a scenario of 3% inflation, this would represent an increase of around 5%, substantially below the double-digit increases implemented in previous years. Sierra said the proposal would be temporary while economic growth remains weak and warned that another large increase could add pressure on companies, employment and informality. Coparmex also proposed a simplified tax-payment mechanism to encourage informal businesses to enter the formal economy. The final wage adjustment will be negotiated through CONASAMI’s tripartite process later this year. Source: Milenio

U.S. LIFTS RESTRICTIONS ON NEW MEXICO–U.S. FLIGHTS The U.S. Department of Transportation lifted restrictions that had prevented Mexican airlines from opening new routes to the United States from Mexico City International Airport and Felipe Ángeles International Airport. Washington imposed the measures amid a broader dispute over Mexico’s compliance with the 2015 bilateral air transport agreement, including concerns over airport access, slot allocation and changes affecting cargo operations. The decision followed steps by Mexico to address several of those concerns, although U.S. authorities will continue monitoring compliance and some oversight measures remain in place. The change restores opportunities for Mexican carriers to expand service in the bilateral market. Aeromexico CEO Andrés Conesa subsequently said the airline is evaluating several new U.S. routes and expects to announce additional destinations after completing permitting and slot procedures. The development comes as Mexico simultaneously works to address issues identified during a U.S. aviation safety audit and preserve its Category 1 safety rating. Mexican authorities announced additional resources and personnel for the Federal Civil Aviation Agency, with another U.S. review expected in December. Source: Reuters

Legislative and Regulation Issues: DIGITALIZATION

DATA PROTECTION

FEDERAL REVENUE LAW FOR FISCAL YEAR 2027

DRAFT DECREE AMENDING ARTICLES 8, 12 AND 16 OF THE FEDERAL LAW ON PROTECTION OF PERSONAL DATA HELD BY PRIVATE PARTIES

Presented by: Federal Executive (President Claudia Sheinbaum). Economy and Legislative Studies Committees, Senate. Purpose: Promote the adoption of digital and electronic payment methods, including bank transfers, debit and credit cards, QR codes, and other electronic systems, while expanding financial inclusion and reducing reliance on cash. The law authorizes the Ministry of Finance (SHCP) to identify strategic sectors and activities in which digital payments may become mandatory, subject to specific transition periods. It also introduces digital identification mechanisms, including CURP Digital and the Digital Citizen File, to facilitate remote financial services and establishes provisions for the gradual implementation of electronic payment infrastructure across businesses and public services. Status: 2026-10-20 – Approved by the Senate in general with 73 votes in favor and 34 against, and in particular with 72 votes in favor and 37 against. Having previously been approved by the Chamber of Deputies, the law was sent to the Federal Executive for enactment and publication in the Official Gazette (DOF).

Presented by: Anticorruption and Transparency Committee and First Legislative Studies Committee, Senate. Purpose: Strengthen the protection of children's and adolescents' personal data in digital environments by introducing additional obligations for companies and digital platforms. The reform requires express written consent from parents or legal guardians before processing minors' personal information, establishes age-verification mechanisms, and limits data collection to what is strictly necessary. It also prohibits automated profiling for personalized advertising or commercial exploitation directed at minors and requires accessible mechanisms for parents or guardians to request the cancellation or deletion of their children's personal data. Status: 2026-10-20 – Approved unanimously by the Senate with 108 votes in favor. Sent to the Chamber of Deputies for further legislative consideration.

INTELLECTUAL PROPERTY DRAFT DECREE AMENDING THE FEDERAL CRIMINAL CODE AND THE FEDERAL LAW FOR THE PROTECTION OF INDUSTRIAL PROPERTY Presented by: Federal Executive (President Claudia Sheinbaum). Justice Committee, Chamber of Deputies.

Purpose: Strengthen the protection of intellectual property rights by increasing penalties for piracy, counterfeiting, and unauthorized distribution of protected works. The reform introduces the concept of commercial-scale infringement, encompassing activities that generate economic benefits or cause significant harm to rights holders, even without direct financial gain. It establishes prison sentences of four to ten years and fines of 2,000 to 20,000 days for certain unauthorized distributions of copyrighted material before its official release. The legislation also expands enforcement mechanisms for counterfeit goods under customs control, including goods in transit, transshipment, and bonded warehouses, while establishing exceptions for small quantities intended for personal use. Status: 2026-10-21 – Approved in general and in particular by the Chamber of Deputies, with 281 votes in favor and 87 against in the final vote. Having previously been approved by the Senate, the reform was sent to the Federal Executive for enactment and publication in the Official Gazette (DOF).