April 25 – May 2, 2025
HOT TOPICS:
U.S.RefinesAutoTariffStrategytoEase TradePressures
MARK CARNEY WINS ELECTIONS IN CANADA
Mark Carney’s Liberal Party won Canada’s April 2025 federal election with 43 7% of the vote, surpassing Pierre Poilievre’s Conservatives (41.3%) but falling short of a majority The election was shaped by Donald Trump’s threats of annexation and a trade war, which rallied centrist and leftleaning voters around Carney A former central banker with no prior elected experience, Carney replaced Justin Trudeau earlier this year and quickly called early elections He pledged to defend Canada’s sovereignty, strengthen global partnerships especially with Europe and stand firm against Trump Despite lacking a parliamentary majority, Carney’s victory marked a significant political shift amid U S -Canada tensions and was viewed by some as a reaction against Trump’s aggressive rhetoric. President Sheinbaum congratulated Carney on his official triumph on April 29th.
Source: BBC
On April 29, 2025, the U S administration introduced two executive actions to refine its auto tariff strategy, initially launched on February 1 which imposed 25% tariffs on automobiles and key parts to protect national security. These new measures aim to support domestic automakers while curbing excessive import costs. Furthermore, this action comes pressure from car automakers like GM, whose plant in Mexico went into halt earlier this week The first action refines earlier tariffs by maintaining the 25% rate but introduces offsets for vehicles assembled in the U.S., reducing effective tariffs based on domestic content This aims to promote U S assembly and reduce dependence on foreign parts The second action tackles “tariff stacking” by ensuring only the highest applicable tariff applies to an imported item, retroactively from March 4, 2025, with refunds issued for overpaid duties on goods like steel, aluminum, and cars.
These changes intend to balance national security with economic feasibility by mitigating production cost inflation and potential consumer price hikes However, analysts caution that high U.S. part costs may still drive vehicle prices upward. There are concerns about trade tensions with major partners and possible retaliation could disrupt global trade Nevertheless, Marcelo Ebrard, Secretary of Economy, celebrated the fact that Mexico and Canada will not pay tariffs on auto parts as an important step forward. Everything covered by the USMCA is exempt from tariffs, except for steel and aluminum, which are applicable to all countries Meanwhile, for vehicles and auto parts, special treatment will be given to products produced within the USMCA, such as auto parts.
Source: THE WHITE HOUSE
AGREEMENT IS REACHED OVER WATER DISPUTE
Mexico and the United States reached an agreement under the 1944 Water Treaty to address Mexico’s water delivery obligations from the Río Bravo during the current five-year cycle, ending October 24, 2025 Mexico committed to immediate and rainyseason water transfers to help compensate for a potential shortfall The deal aims to ensure water supply for Mexican communities and U S agricultural needs Both countries agreed the treaty remains beneficial and doesn’t require renegotiation. The agreement was formalized through technical meetings and will be monitored by the International Boundary and Water Commission (IBWC) and Mexico’s National Water Commission (CONAGUA)
Source: GOBIERNO DE MÉXICO
HOT TOPICS:
National Public SecurityStrategyannounced byCongress
On April 30, 2025, the Mexican Senate approved the National Public Security Strategy 2024–2030, submitted by President Claudia Sheinbaum. Despite opposition from the Institutional Revolutionary Party (PRI), which criticized the document as disconnected from the violent reality of daily life in Mexico, the strategy passed with support from other parties PRI senator Miguel Riquelme denounced the plan as militarized, lacking accountability, data consistency, measurable goals, and a realistic diagnosis. PAN and Movimiento Ciudadano (MC) legislators also noted significant shortcomings but chose to support the initiative, hoping it would provide necessary tools to combat violence PAN emphasized the absence of clear actions for protecting highways and supporting local governments MC acknowledged the strategy’s more structured and technical approach compared to the previous administration but warned of the need for continuous evaluation The strategy envisions a central role for federal institutions, including the military and navy, and will involve training in Navy facilities in Campeche.
The increased militarization of Mexico’s security efforts could impact U S -Mexico cooperation, especially on border security and transnational crime If local police forces weaken further, the U.S. may need to reassess joint operations on drug trafficking, migration, and cartel violence Moreover, greater centralization may limit regional coordination efforts, which are key to U S interests Continued instability or perceived ineffectiveness of the strategy could strain bilateral security agreements or prompt new U S initiatives to ensure regional safety and control cross-border threats.
Source: EL ECONOMISTA
MEXICO MAKES INVESTEMENT IN WATER INFRASTRUCTURE
Mexico will invest $9 5 billion USD (186 6 billion pesos) over the next five years in 37 water infrastructure projects under the "Plan México" to guarantee nationwide water supply In 2025 alone, 30 9 billion pesos will be allocated, creating over 65,000 jobs Key initiatives include modernizing 240,000 hectares of irrigation systems, restoring rivers like Tula and Lerma-Santiago, and building major infrastructure such as aqueducts and dams across 15 states. The plan also includes subsidies for efficient agricultural water use and aims to address droughts affecting over half the country It combines federal, state, and municipal resources for nationwide impact
Source: FORBES MÉXICO
40 HOUR WORKWEEK INITIATIVE ADVANCEMENTS
On May 1st, 2025, President Claudia Sheinbaum announced the beginning of a transition toward a 40-hour workweek in Mexico The reform will be gradual, with full implementation by 2030, and shaped through national forums starting June 2 She emphasized consensus among workers, employers, and unions. Labor Secretary Marath Bolaños stated the reform aims to improve workers' quality of life without reducing productivity. This initiative aligns with the government’s broader goals of justice, democracy, and social well-being Nevertheless, this reform could also pose further pressures for employers and investors amid the current climate and tariffs imposed by the US
Source: LA JORNADA
TELECOMMUNICATIONS LAW BEING DISCUSSED IN CONGRESS
Senate forums will discuss Mexico’s new Telecommunications Law, including the controversial Article 109 and proposed power concentration in the Digital Transformation Agency Lawmakers aim to revise the bill with input from various sectors. Discussions will cover digital services, content, and infrastructure.
Source: LA JORNADA
HOT TOPICS: Legislative and Regulatory Issues:
LABOR
INITIATIVE WITH DRAFT DECREE TO AMEND SECTION I OF ARTICLE 127 OF THE FEDERAL LABOR LAW
Presented by: Sen. Jorge Carlos Ramírez Marín (Yucatán - PVEM)
Objective: Limits exclusion from profitsharing to individuals holding top executive roles with strategic decisionmaking authority, legal representation, and oversight of all company operations; excludes mid-level managers with limited functions.
Status: 2025-04-30 – Published in the Parliamentary Gazette
INITIATIVE WITH DRAFT DECREE TO ENACT THE GENERAL LAW ON PAY EQUALITY BETWEEN WOMEN AND MEN
Presented by: Deputy Julia Arcelia Olguin Serna (Zacatecas - PVEM)
Objective: Establish mandatory measures to eliminate wage discrimination based on gender, including mandatory salary audits, equality plans, and awareness campaigns, to promote fair compensation practices and remove gender-based workplace barriers
Status: 2025-04-28 – Published in the Parliamentary Gazette
PUBLIC ADMINISTRATION
DECLARATION OF PUBLICITY OF THE BILL TO ENACT THE NATIONAL LAW TO ELIMINATE BUREAUCRATIC PROCEDURES
Presented by: Transparency and AntiCorruption Committee
Objective: Enact a national framework to eliminate bureaucratic procedures by promoting administrative simplification, digitalization of services, and technological capacity development across all levels of government
Status: 2025-04-28 – Approved, passed to the Senate of the Republic
CYBERSECURITY
INITIATIVE WITH DRAFT DECREE TO ENACT THE CYBERSECURITY LAW
Presented by: Sen Luis Donaldo Colosio Riojas (NL - MC)
Objective: Establish a legal framework for national cybersecurity, protecting human rights, critical infrastructure, and digital sovereignty Proposes the creation of a National Cybersecurity Agency, strategy, incident response centers, and a national coordination system
Status: 2025-04-30 – Published in the Parliamentary Gazette
ECONOMY
INITIATIVE WITH DRAFT DECREE TO ENACT THE FEDERAL ANTITRUST AND ECONOMIC COMPETITION LAW
Presented by: Sen. María Guadalupe Chavira De La Rosa (CDMX - MORENA)
Objective: Establish a legal framework to ensure free market competition by creating a new agency and prosecutor’s office to combat monopolistic practices, regulate dominant players, and protect consumers, especially in sectors like broadcasting and telecommunications
Status: 2025-04-29 – Published in the Parliamentary Gazette
INITIATIVE TO AMEND, ADD, AND REPEAL VARIOUS PROVISIONS OF THE FEDERAL ECONOMIC COMPETITION LAW AND THE FEDERAL LAW OF PARASTATAL ENTITIES
Presented by: Federal Executive
Objective: Proposes four key reforms: establishing the new National Antitrust Commission, adjusting its powers and structure, improving procedures to combat monopolies, and introducing changes in telecommunications and broadcasting regulations
Status: 2025-04-25 – Published in the Parliamentary Gazette
