May 2-9, 2025
HOT TOPICS:
US –UK AgreementcouldSideline Mexico
US CONTINUES TO MITIGATE SECURITY RISKS
In response to rising violence and organized crime, the U.S. government under President Trump is intensifying efforts to curb arms trafficking to Mexico. Authorities such as the ATF and CBP pledged to use all available tools, including the recent designation of Mexican cartels as foreign terrorist organizations, to prosecute those involved in drug, human, and arms trafficking more severely.
These measures were reinforced by statements from officials stressing inter-agency cooperation. Meanwhile, Ovidio Guzmán López, son of El Chapo, is expected to plead guilty to federal drug charges, marking a pivotal moment in the U S crackdown on cartel leadership President Trump also confirmed he offered to send U.S. troops to Mexico to fight cartels, but President Sheinbaum firmly rejected the idea, advocating for sovereign cooperation instead. She also stated that each State should fight in their own territory and they can cooperate by sharing information
Source: THE NEW YORK TIMES
On May 8, 2025, President Donald Trump and UK Prime Minister Keir Starmer announced a landmark U S -UK trade agreement enhancing bilateral economic cooperation This deal eliminates numerous non-tariff barriers in the UK that previously limited U.S. access, especially in agriculture and chemicals, unlocking an estimated $5 billion in new export opportunities It includes significant market openings for American beef, ethanol, and pharmaceutical products, and provides preferential access to UK aerospace components for U.S. manufacturers. Additionally, it establishes streamlined customs procedures and highstandard commitments in labor, environment, and intellectual property Despite this progress, the U S retains a 10% tariff on UK goods, with auto imports beyond 100,000 vehicles annually facing a 25% rate Discussions continue regarding Section 232 tariffs on steel and aluminum, though both countries aim to form a new trade union in these sectors.
This historic agreement could risk sidelining Mexico if similar access and modernized terms are not pursued within the USMCA framework The U S -UK deal signals a shift toward bilateralism and reciprocal trade standards, potentially weakening multilateral accords where Mexico relies on collective leverage U S exporters now enjoy broader access in the UK, while Mexican goods still face EU and UK restrictions post-Brexit. If Mexico does not renegotiate parts of the USMCA or diversify its trade strategies, it may lose competitiveness, particularly in agricultural and automotive sectors. Furthermore, with the U S focusing on securing supply chains and high-standard commitments, Mexico must align its labor and environmental policies to remain a priority partner.
Source: NEW YORK TIMES
During a tense but cordial White House visit, Canadian Prime Minister Mark Carney firmly rejected President Trump’s repeated suggestions that Canada become the 51st U.S. state. Carney emphasized economic partnership and Canada’s vital trade role, while Trump downplayed earlier aggressive rhetoric Amid discussions on tariffs and the crumbling USMCA trade framework, both leaders acknowledged the need for renegotiation Mexico, as the third pillar of the North American trade bloc, was also referenced by Trump, who criticized its contributions and hinted at further economic pressure With the 2026 USMCA review approaching, Mexico faces increased scrutiny amid regional calls for a trade overhaul.
Source: THE NEW YORK TIMES
MARK CARNEY TALKS WITH TRUMP
HOT TOPICS:
MexicoStrengthensSteel andTextileIndustries with ProtectionistReformsUnderPlanMéxico
On May 5, 2025, Mexico’s Secretary of Economy, Marcelo Ebrard, announced new measures under the “Plan México” to strengthen the national steel and textile industries. The government identified over 1,600 steel mills with irregularities or false documentation, whose import licenses will be revoked This aims to ensure fair competition by allowing only compliant steel producers to export to Mexico In the textile sector, a 35% tariff was imposed in December 2024 on 138 textile and footwear categories from countries without free trade agreements Additionally, eight companies misusing the IMMEX program were shut down and are under federal investigation for tax fraud These firms had illegally imported over 24 billion pesos in goods by simulating export processes, harming legitimate domestic manufacturers.
As a result of these actions, temporary textile imports dropped 53% and finished product imports fell 60% in early 2025. These protectionist policies are expected to enhance national production, reduce unfair foreign competition, and create more domestic jobs. For Mexico’s exports, especially under IMMEX, the implications include tighter compliance requirements and possible short-term disruptions for companies that rely on foreign inputs However, in the long run, the measures aim to increase the competitiveness and integrity of Mexico’s export-oriented industries, potentially improving their global reputation and sustainability The campaign “Hecho en México” will also promote domestic products to strengthen internal consumption and national identity
Source: EL ECONOMISTA
TELECOMMUNICATIONS LAW UNDER REVIEW AMID CENSORSHIP CONCERNS
The Mexican Senate has initiated a series of public forums to discuss the proposed Telecommunications and Broadcasting Law, aiming to revise the bill approved in commissions. Senator Javier Corral emphasized the importance of plural dialogue and warned against digital imperialism. Key stakeholders, including the IFT, CIRT, civil society, and academia, raised concerns about government overreach, digital censorship, and the need to ensure equitable access and quality service, especially in marginalized areas. The controversial Article 109, allowing the government to block digital platforms without justification, drew significant criticism and was paused by President Claudia Sheinbaum amid censorship concerns.
Source: LATINUS
SENATE CHALLENGES JUDICIAL CANDIDACIES
The Mexican Senate withdrew its challenge against the INE’s general agreement on judicial candidacies, but plans to file individual objections to 26 specific candidates over alleged unsuitability, including ties to organized crime or academic deficiencies Senate President Gerardo Fernández Noroña emphasized that if the INE ignores the objections, they will escalate the matter to the Electoral Tribunal (TEPJF) The INE responded that it is no longer possible to remove candidates Lawmakers maintain their right to challenge candidates based on constitutional standards
Source: EXCÉLSIOR
ECONOMIC OVERVIEW FOR APRIL 2025
In April 2025, new car sales in Mexico dropped 4 6% annually to 108,298 units, the lowest in 23 months, signaling a market slowdown However, Nissan, Mazda, Ford, and MG saw growth Simultaneously, Mexican exports to the U.S. rose 15 4% in March, driven by pre-tariff shipments, maintaining Mexico as the U S ’s top trade partner New U S tariffs on metals and nonUSMCA compliant goods impacted trade dynamics, while the U S economy showed signs of contraction amid a growing trade deficit
Source: EL ECONOMISTA
HOT TOPICS: Legislative and Regulatory Issues:
POLITICAL
INITIATIVE WITH A DRAFT DECREE TO REFORM THE CONSTITUTION STATES IN MATTERS OF EARLY CHILDHOOD, HEALTH, POSITIVE PARENTING, MATERNITY, WORK LEAVE, CULTURAL RIGHTS, SCHOOL GARDENS, AND FOOD SECURITY FOR CHILDREN AND ADOLESCENTS
Presented by: The Parliamentary Group of Movimiento Ciudadano
Objective: The initiative emphasizes the principle of the best interests of children, ensuring the full guarantee of their rights, with a focus on maternal and child health, medical attention during pregnancy and early childhood, and prevention measures It mandates 18 weeks of paid maternity leave and ensures employment protection If the child has a disability or requires medical attention, the leave may extend to 20 weeks Additionally, it provides flexibility for women to choose when to begin the leave period during pregnancy
Status: 2025-05-07 - Published in the Parliamentary Gazette
Note: This initiative was referred by the Permanent Commission; during the end of the legislative period, they have legal faculties to turn initiatives to the Committees for the next Legislative period.
