Weekly Report - 24.07.26

Weekly Report July 24th, 2026

Hot Topics THIRD USMCA ROUND ENDS WITH PROGRESS, NEXT TALKS SET FOR SEPTEMBER President Claudia Sheinbaum met with U.S. Trade

Representative Jamieson Greer at the National Palace during the third bilateral round of the USMCA Joint Review.

Both

negotiations

governments

covering

reported

economic

progress

security,

on

labor,

agriculture, automobiles, steel and aluminum, electronic payment services, and regional supply chains. The two

sides reaffirmed their commitment to strengthening

MEXICO AND U.S. EXPAND COORDINATION AGAINST CJNG FINANCIAL NETWORKS

introduction of new U.S. trade enforcement measures.

Mexico and the United States announced coordinated actions to dismantle the financial structure of the Jalisco New Generation Cartel (CJNG). The U.S. Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions on more than 50 individuals and entities linked to the organization, targeting its leadership, drug trafficking cells, financiers, and money laundering networks.

Simultaneously, Mexico's Financial Intelligence Unit (UIF) reported that its financial investigations helped identify suspicious cash transactions, luxury asset purchases, international transfers, virtual asset operations, and shell companies connected to the cartel. Based on these findings, the UIF filed a criminal complaint with the Attorney General's Office and froze the assets of those involved by adding them to Mexico's blocked persons list.

The coordinated action reflects growing bilateral cooperation to disrupt organized crime through financial enforcement rather than solely through security operations.

Source: SECRETARÍA DE ECONOMÍA, EL UNIVERSAL, MILENIO

Sources: SECRETARÍA DE HACIENDA, U.S. TREASURY

North American manufacturing, addressing free-riding by

non-member countries, and agreed to hold a fourth negotiation round in Washington, D.C., in September.

The

meeting

also

coincided

with

the

USTR's

announcement of new Section 301 tariffs on imports from 60 economies over concerns related to forced labor

enforcement. Mexico was included with a 10% tariff; however, the government clarified that the measure does not represent a new trade restriction, as it simply

replaces the previous Section 122 tariff, while at least 80% of Mexican exports that comply with USMCA rules of

origin

remain

exempt

from

tariffs.

The

latest

developments suggest that both governments are seeking to keep broader trade negotiations on track despite the

CONGRESS SETS LEGISLATIVE PRIORITIES FOR SEPTEMBER SESSION Ricardo Monreal, president of the Political Coordination Committee (Jucopo), announced that the Chamber of Deputies will prioritize five major legislative initiatives when the next ordinary session begins on September 1.

Morena's agenda includes proposals to regulate artificial intelligence, reform the legal framework on feminicide, enact implementing legislation for Indigenous and Afro-Mexican rights, modify regulations governing major medical insurance, and establish a national animal welfare law. According to congressional leaders, the majority caucus will seek cross-party support to advance these initiatives through the legislative process.

The agenda signals the federal government's intention to continue expanding its regulatory framework across emerging technologies, social policy, healthcare, and constitutional reforms.

Sources: EL IMPARCIAL

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Hot Topics SHEINBAUM AND TRUMP HOLD MEETING DURING WORLD CUP

MEXICO'S INFLATION EASES AS ECONOMIC ACTIVITY SHOWS MODEST RECOVERY Mexico's headline inflation slowed to 3.10% year-over-year in the first half of July, marking its eighth consecutive biweekly decline and its lowest level since December 2020. The moderation was driven primarily by lower prices for fresh food products, including tomatoes, avocados, and peppers, while the non-core inflation component fell close to zero. Core inflation remained more resilient, reflecting seasonal increases in services such as air travel, tourism, restaurants, and housing.

The latest reading keeps inflation comfortably within Banco de México's 3% ±1 percentage point target range, reinforcing expectations of a more stable price environment.

Meanwhile, the Timely Indicator of Economic Activity (IOAE) suggests the economy expanded 0.2% month-over-month in June after contracting in May, with both services and industrial activity posting modest gains.

On an annual basis, economic activity grew 1.7%, its strongest performance since December 2025. While the data point to a gradual improvement in domestic conditions, growth expectations remain mixed amid external trade uncertainty, with private sector forecasts still below the federal government's projection for 2026.

Source: LA JORNADA, EL UNIVERSAL

President Claudia Sheinbaum attended the 2026 FIFA World Cup final alongside U.S. President Donald Trump and Canadian Prime Minister Mark Carney, underscoring the trilateral partnership among the tournament's host countries. Sheinbaum described her attendance as an important diplomatic engagement and said the leaders briefly discussed bilateral trade issues on the sidelines of the event. The leaders were joined by senior FIFA officials and other international dignitaries, including Spain's King Felipe VI and Prime Minister Pedro Sánchez.

The encounter marked only the second known face-to-face meeting between Sheinbaum and Trump since both assumed office. Although no substantive announcements emerged from the brief conversation, the meeting signals both governments' willingness to maintain highlevel political dialogue as negotiations over trade and other bilateral issues continue.

Source: EXCELSIOR, MILENIO

MEXICO LAUNCHES ENVIRONMENTAL FUND TO MOBILIZE PRIVATE CAPITAL The Mexican government launched the Environmental Capital Fund, a financing mechanism led by the Ministry of Finance (SHCP), the Ministry of Environment (Semarnat), and CAF–Development Bank of Latin America and the Caribbean to mobilize up to US$10 million for sustainable development projects without increasing pressure on public finances. The fund will seek to attract resources from private companies, financial institutions, multilateral organizations, and philanthropic foundations to finance projects in ecosystem restoration, water security, circular economy, biodiversity, climate action, and natural resource conservation. The initiative forms part of the government's broader sustainable finance strategy and reflects growing efforts to leverage private investment to advance environmental and industrial policy objectives.

Sources: EL ECONOMISTA

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Legislative and Regulatory Issues: LABOR

LABOR

Initiative Amending Article 170 of the Federal Labor Law on Gestational Bereavement Leave for Mothers, Fathers, and Family Bereavement Protections • Presented by: Chamber of Deputies – Deputy Karina Isabel Martínez Montaño (MORENA) • Objective: Establishes paid leave for pregnant employees and co-parents following pregnancy loss or stillbirth. It grants two or four weeks of leave depending on gestational stage, while guaranteeing job stability and prohibiting discrimination or dismissal resulting from gestational loss or fetal death in the workplace.

• Status: Published in the Parliamentary Gazette – July 22, 2026.

Initiative Amending Various Provisions of the Federal Labor Law on the Prevention, Response, Investigation, and Sanction of Sexual Harassment and Workplace Harassment • Presented by: Chamber of Deputies – Deputy María Teresa Ealy Díaz (MORENA) • Objective: Requires workplaces with more than ten employees to implement sexual harassment prevention protocols and establish internal committees. It mandates confidential, impartial, gender-sensitive investigation procedures, requiring complaints to be resolved within sixty business days, extendable once, strengthening workplace protections against sexual harassment and abusive conduct.

• Status: Published in the Parliamentary Gazette – July 22, 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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