Weekly Report - 28.08.26

Weekly Report August 28th, 2026

Hot Topics VELASCO AND RUBIO MEET TO RENEW MEXICO–U.S. DIPLOMATIC DIALOGUE Mexico and the United States advanced diplomatic engagement this week as Foreign Affairs Secretary Roberto Velasco met with U.S. Secretary of State Marco Rubio in Washington. The meeting focused on security and migration, with both governments presenting different emphases regarding progress and outstanding challenges. Mexico highlighted advances in combating drug and arms trafficking and transnational organized crime, while reiterating that bilateral cooperation should be based on sovereignty, mutual trust, shared responsibility, and collaboration without subordination.

The U.S. side emphasized the need for further action to curb irregular migration, fentanyl and other illicit drug trafficking, and the activities of cartels and foreign terrorist organizations. The differing messages underscore that, despite renewed dialogue, Washington continues to press Mexico for concrete results on security priorities.

Migration was also discussed, including the protection and respect of Mexicans’ human rights during immigration proceedings in the United States. The meeting comes amid broader efforts to stabilize bilateral relations after months of tensions over security, migration, and sovereignty. Before returning to Mexico, Velasco also met with U.S. officials to discuss cooperation in innovation, artificial intelligence, semiconductors, and supply chains, signaling an effort to broaden bilateral engagement beyond contentious security issues.

ROCHA MOYA FACES POLITICAL PRESSURE AFTER UNILATERAL RETURN Sinaloa Governor Rubén Rocha Moya, who had requested leave from office amid accusations by U.S. authorities of ties to drug trafficking, briefly resumed his duties, triggering an immediate political backlash. Morena lawmakers viewed the move as a direct challenge to Sheinbaum, who reportedly considered his return a serious political misstep. Rocha subsequently requested another leave of absence amid pressure from the federal government and Morena. The episode has intensified political tensions within the ruling party, with Morena moving to distance itself from the governor. The dispute adds a layer of pressure on Sheinbaum, who must balance support for her party's governor with the broader political and legal implications.

Source: EL UNIVERSAL

Source: EL PAÍS, MINISTRY OF FOREIGN RELATIONS

LEGISLATIVE AGENDA TAKES SHAPE AHEAD OF SEPTEMBER SESSION The regular session of the Congress will begin on September 1, with an agenda marked by various initiatives from the executive branch and the need to address pending issues during the final year of the current legislative session. Among the priority proposals is Claudia Sheinbaum’s initiative to amend the Constitution and stipulate that those seeking the presidency and state governorships, may not hold dual citizenship.

Discussions are also expected on the new General Law on Ecological Protection and Environmental Justice, submitted by the President to strengthen the state’s capacity in the areas of environmental prevention, restoration, and protection. For his part, Ricardo Monreal, Morena’s Coordinator in the Chamber of Deputies, reported that 31 bills have been identified as priorities, with topics including femicide, industrial property, animal welfare, and amendments to the Organic Law of the Judiciary. Also, during this session, the Federal Economic Package has to be presented in Congress by September 8th, corresponding one of the main priorities for this legislative period.

Source: EL UNIVERSAL, PRESIDENCY OF THE REPUBLIC, MORENA

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Hot Topics MEXICO SEEKS TO ADVANCE TRADE AGREEMENT WITH U.S. AMID U.S.-CANADA TENSIONS Following Canadian Prime Minister Mark Carney’s announcement last Friday that commercial negotiations with the United States had broken down, Mexico has sought to keep its own negotiations with Washington.

President Claudia Sheinbaum said Mexico remains optimistic about reaching an agreement to reduce tariffs affecting Mexican exports and improve the country’s trade conditions.

Also, Secretary of Economy Ebrard said tensions between Washington and Ottawa do not benefit Mexico and stressed the need for North American integration.

He confirmed that Mexico is preparing a fourth formal round of negotiations in which they will be seeking tariff conditions at least as favorable as those granted to other U.S. trading partners, including reductions in steel tariffs.

Source: EL FINANCIERO, LA JORNADA

FOREIGN DIRECT INVESTMENT REACHES RECORD HIGH Mexico recorded a historic level of Foreign Direct Investment (FDI) during the first half of 2026, reaching US$34.97 billion, according to the Ministry of Economy. The figure represents a 2.1% increase compared with the amount initially reported for the same period in 2025 and marks the highest FDI level ever recorded for a first half.

Manufacturing was the largest recipient, attracting US$13.48 billion, up 9.3% year-on-year and accounting for 38.6% of total FDI. Investment in computer, communications equipment and electronic components was among the main drivers of manufacturing growth.

The United States remained Mexico’s largest source of FDI, contributing US$16.87 billion, or 48.2% of the total. Meanwhile, Mexico City, Nuevo León and the State of Mexico were the leading destinations for investment. According to President Claudia Sheinbaum, the figures are evidence of Mexico’s economic strength.

Source: MINISTRY OF ECONOMY, PRESIDENCY OF THE REPUBLIC

SHEINBAUM WEIGHS ATTENDING G20 SUMMIT President Claudia Sheinbaum confirmed that she has been invited to the G20 Summit in Miami, Florida, in December and said Mexico should be represented, although the final decision on her attendance will be made closer to the event. Sheinbaum emphasized that Mexico will continue seeking a strong relationship with the United States while defending national sovereignty, independence, territorial integrity, non-interference, and nonsubordination.

The president also highlighted continued communication with U.S. President Donald Trump, noting that she has spoken with him 21 times by phone and that Mexican and U.S. delegations remain in regular contact. She indicated that a potential meeting with Trump could take place once bilateral agreements are reached on current trade and tariff issues.

Source: MILENIO

BANXICO RAISES 2026 GROWTH FORECAST TO 1.5% Banco de México raised its 2026 GDP growth forecast for Mexico to 1.5%, from a previous range of 0.5–1.7%, following stronger-than-expected economic activity in the second quarter. However, the central bank expects growth to moderate gradually ahead, lowering its 2027 forecast from 2.1% to 2.0%. Banxico maintained a cautious outlook, noting that private consumption is expected to recover while investment could remain weak amid uncertainty surrounding Mexico-U.S. trade relations and the USMCA review.

The central bank identified increased trade uncertainty, geopolitical conflicts, financial volatility, weaker-thanexpected U.S. growth and adverse weather as downside risks. Conversely, faster progress in USMCA reviews, ratification of the agreement, stronger U.S. growth and infrastructure investment could support expansion.

Source: EL FINANCIERO, LA JORNADA

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Legislative and Regulatory Issues: ENVIRONMENT

ECONOMY

Initiative to Issue The General Law of Ecological Balance and Environmental Protection • Presented by: Ministry of Environment and Natural Resources (SEMARNAT) • Objective: Proposes a structural, conceptual, and procedural overhaul of the General Law of Ecological Balance and Environmental Protection.

The initiative introduces modern environmental management paradigms, new public policy instruments, and strengthens the environmental liability framework to guarantee everyone’s right to a healthy environment for individual and collective development, health, and well-being.

• Status: August 26, 2026 – Exempted from Regulatory Impact Analysis.

2026 National Quality Infrastructure Program Supplement • Presented by: Ministry of Economy • Objective: Publishes an information and planning document outlining the topics to be addressed during 2026 in the areas of standardization, conformity assessment, and metrology.

• Status: August 26, 2026 – Published in the Official Gazette of the Federation.

Note: Mexico’s Congress Will resume activities next Tuesday, September 1st.

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