July 18-25, 2025
Hot Topics
THEUSPOSESPOSSIBLEFLIGHT RESTRICTIONSONMEXICANAIRLINES
The United States has threatened with new flight restrictions on Mexican airlines, accusing Mexico of violating a bilateral aviation treaty by diverting US cargo and passenger flights to the AIFA Also, US Transportation Secretary Sean Duffy argued that this shift gives Mexican carriers an unfair advantage, and he warned that the US may revoke approval of the Delta-Aeromexico partnership. In response, President Sheinbaum defended the decision, saying the rerouting was essential to ease congestion. She also noted that Mexico is currently negotiating an agreement to avoid the restrictions On another note, two flights from Aeroméxico and Delta almost crashed in the AICM While these are isolated incidents, they show how the Mexico City aerospace is in urgent need of new infrastructure.
Source: EL UNIVERSAL
LUTNICK"USTO POTENTIALLYRENEGOTIATE USMCA IN2026"
The review of the USMCA remains on schedule, with technical negotiations set to begin in September 2025. However, US Commerce Secretary Howard Lutnick stated that President Trump intends to renegotiate the USMCA within a year to protect US jobs, emphasizing that while USMCA products remain without tariffs "changes are inevitable".
President Sheinbaum reaffirmed the USMCA's importance, highlighting how US companies benefit the most from Mexico’s exports, especially in the auto sector Despite Trump’s protectionism, Sheinbaum insisted that the USMCA remains critical for both economies. Also, Mexico continues to negotiate with the US on several trade issues, including tariffs on steel and aluminum. This stance could be done to gain leverage ahead of the review, with a likely focus on stricter rules of origin and enhanced labor and legal protections for US investors. Lastly, this statement by Lutnick remains to have any real effects on the already programmed review of the Trade Deal
Source: REUTERS
TRUMP's DEAL WITH JAPAN POSES THREAT TO AUTOMAKERS
President Trump’s new trade deal with Japan lowers auto tariffs from 25% to 15%, benefiting Japanese automakers while leaving North American producers. While most automotive producers in Mexico comply under USMCA guidelines and are tariff-exempt, this could pose a risk with reduced investment and production Specially, if similar deals are made with other countries; Mexico’s competitiveness in the auto sector could decline, especially if other countries and automakers gain preferential treatment under US trade policy Furthermore, automakers' concerns show that there is a threat to the supply chain
Source: POLITICO
Hot Topics
IBERDROLA SEEKS TO LEAVE MEXICO
President Claudia Sheinbaum stated there is no official confirmation that Spanish energy firm Iberdrola plans to exit Mexico, despite reports that the company intends to sell 15 renewable energy plants She clarified that, according to recent discussions with the Energy Ministry, Iberdrola still has investment plans in the country. However, Sheinbaum dismissed the possibility of the government buying the plants, as it did in 2024, though she left the door open for future discussions. The president also criticized the self-supply model used by some private firms, calling it illegal under Mexico’s energy framework
Source: EL ECONOMISTA
MINIMUM WAGE FOR 2026
Starting January 1, 2026, Mexico's minimum wage will increase by 12%. In most of the country, it will rise to 312.25 pesos daily (9,367.5 monthly), while in the northern border zone it will be 470.46 pesos daily (14,113.8 monthly). This aims to boost purchasing power and align wages with inflation.
Source: INFOBAE
TARIFFSEFFECTSONTHEAUTOMOTIVE SECTOR
President Trump’s auto tariffs are disrupting the North American supply chain and hurting Mexico’s auto industry General Motors reported a $1 1 billion USD loss in Q2 2025 due to tariffs, despite stable sales, and announced it would move production of some models to US factories Stellantis also reported losses of $330 million USD linked to reduced imports and manufacturing cuts, while warning of worse impacts in the second half of the year.
Furthermore, Nissan is expected to close two major plants in Mexico by 2027 as part of a global restructuring plan. Although not only due to US policy, the closures reflects a shift as companies changes operations under growing trade uncertainty These developments highlight the pressure on Mexico’s competitiveness as a manufacturing hub amid Trump’s trade policies
Source: REFORMA
THE MICHOACAN FAMILY CARTEL OPERATION
Authorities in Mexico launched "Operativo Liberación" to dismantle an extortion network run by the Familia Michoacana cartel, which controlled the economy of several municipalities in Edomex. The operation led to eight arrests and the identification of 52 carte sites. Criminals extorted local businesses and manipulated prices, even involving public officials. The crackdown is part of President Sheinbaum’s broader strategy against organized crime, under pressure from the US to deliver results on the regional security issues
Source: EL FINANCIERO
Legislativeand RegulatoryIssues:
LABOR
Initiative With Draft Decree To Amend Article 170, Section Ii Of The Federal Labor Law To Extend Maternity Leave To Sixteen Weeks
Presented by: Parliamentary Group of the PRI
Objective: Establishes that mothers will be entitled to eight weeks of leave before and eight weeks after childbirth. Upon the worker's express request and with written authorization from the relevant social security physician or employer-provided health service.
Status: 2025-07-23 – Published in the Parliamentary Gazette
Initiative To Add Article 387 Bis To The Federal Criminal Code Regarding Fraudulent Job Offers
Presented by: Rep. Ofelia Socorro Jasso Nieto (Plur - PRI)
Objective: Imposes a penalty on anyone who, through websites, social media or any other electronic means, publishes, disseminates, or promotes false job offers or fraudulent employment ads that deliberately seek to deceive applicants or put their safety, personal data, or assets at risk.
Status: 2025-07-23 – Published in the Parliamentary Gazette
ENVIRONMENTAL
Initiative With Draft Decree To Amend Articles 195, 203, And 204 Of The General Law Of Ecological Balance And Environmental Protection
Presented by: Sen. Pablo Guillermo Angulo Briceño (LNalPRI)
Objective: Grants binding authority to recommendations issued by the Federal Attorney for Environmental Protection (PROFEPA). Establishes that environmental liability claims will be imprescriptible from the moment of the act, event, or omission.
Status: 2025-07-23 – Published in the Parliamentary Gazette
TRADE
Ruling Under Discussion To Streamline Review Processes For Exporting Goods At Customs
Presented by: Third Commission: Finance and Public Credit, Agriculture and Development, Communications and Public Works (See composition)
Objective: Urges the National Customs Agency of Mexico to continue strengthening actions aimed at optimizing review processes at the country’s customs, particularly those related to the export of goods.
Status: 2025-07-23 – Published in the Parliamentary Gazette
NOTE:
These initiatives were presented during the Extraordinary Period by the Permanent Commissions. Meaning that they would have to be referred to Congress on the next Legislative Period if they were to be approved.
