February 16-28, 2025
HOT TOPICS:
New Tariffsannounced byTrump
MEXICO-US SECURITY COOPERATION EFFORTS
Mexico and the U.S. have strengthened their cooperation in combating drug and arms trafficking, aiming to reduce fentanyl-related deaths and illegal firearms use In a high-level meeting in Washington, Mexico’s security cabinet, led by Foreign Secretary Juan Ramón de la Fuente, met with U S officials, including Secretary of State Marco Rubio, to assess progress and establish new joint actions Mexico also extradited 29 drug traffickers, including Rafael Caro Quintero and members of major cartels, as part of its commitment to fighting organized crime These efforts are crucial for Mexico as it seeks to avoid U.S. tariffs set for March 4, imposed by President Trump over concerns about drug trafficking and migration. Despite these measures, Trump remains unconvinced, stating that cartel dismantling is necessary for real progress. Both governments continue negotiations to strengthen bilateral security efforts.
Source: CNN EN ESPAÑOL
On February 25, 2025, President Donald Trump ordered his administration to consider tariffs on copper imports on top of the other tariffs already announced Despite the U S having a copper trade surplus, the administration views potential supply risks as a security concern. Furthermore, Trump reaffirmed that tariffs announced in January on Mexico and Canada will take effect on March 4, despite previously mentioning an April 2 start date These tariffs include a 25% duty on all Mexican and Canadian imports and a 10% tax on Canadian energy products. Additionally, Trump announced an extra 10% tariff on Chinese imports starting March 4, escalating trade tensions The current Trump tariffs include a 25% duty on all imports from Mexico and Canada, steel, aluminum, automobiles, semiconductors, and pharmaceuticals, along with a reciprocal tariff policy including VAT, an investigation into copper tariffs, and various announcements and memoranda without set rates or timelines
Meanwhile, the Mexican government is negotiating in Washington to prevent the tariffs from affecting bilateral trade. President Claudia Sheinbaum seeks a diplomatic resolution, as Mexico fears economic repercussions However, Trump's unpredictable policy shifts have created legal uncertainty and economic instability. The tariffs on Mexico and Canada are officially tied to stopping drug trafficking and immigration, while those on China focus on economic retaliation. Trump’s broad tariff strategy, covering up to $3 trillion in imports, has raised concerns among economists about inflation and economic slowdown Despite this, copper tariffs alone are unlikely to significantly impact inflation.
Source:EL PAÍS
US REPORTS LESS CROSSINGS IN THE BORDER
The U S Department of Homeland Security reported a record-low number of border crossings on February 22, with only 200 migrant arrests, marking the lowest in over 15 years. Trump’s administration attributes this decline to tightened immigration policies and border restrictions. Meanwhile, shelters in Mexico remain largely empty, as deportations under Trump are below Biden-era averages Many migrants are choosing to return home or seek work in Mexico Experts suggest that fears of mass deportations remain speculative.
Source: EL ECONOMISTA
HOT TOPICS:
SecondaryLawsofEnergyReform
The Senate’s Energy and Legislative Studies Commissions approved a decree with 22 votes in favor, one against, and eight abstentions, issuing eight secondary laws and reforming three existing ones to align with the 2024 constitutional energy reform The decree is now set for discussion and voting in the Senate’s plenary session, likely on Wednesday The legislation, promoted by President Claudia Sheinbaum, aims to strengthen state-owned enterprises, provide regulatory clarity for private actors, enhance oversight capabilities, improve technical regulation, and establish a legal framework for energy transition, electricity, and hydrocarbons The package includes laws governing the Federal Electricity Commission (CFE), Petróleos Mexicanos (PEMEX), the electricity and hydrocarbon sectors, energy transition planning, biofuels, and geothermal energy, as well as the National Energy Commission
A key aspect of the reform is the reintegration of PEMEX and CFE into the energy production sector, reversing previous legal separations and redefining private sector participation Supporters argue this will create a more efficient and transparent energy sector under public control, ensuring energy security and sustainability Critics from opposition parties (PAN, PRI, and MC) argue that the reforms do not guarantee cheaper or cleaner energy and may hinder private investment Potential implications for Mexico’s energy sector include greater state control, possible limitations on foreign and private investments, and increased focus on energy sovereignty However, concerns remain about efficiency, long-term investment attractiveness, and the potential economic impact of reduced competition
Source: EL ECONOMISTA
HOME DEPOT'S NEW INVESTEMENT IN MEXICO
Home Depot will invest over $1 3 billion in Mexico between 2025 and 2028 to expand its presence and increase local sourcing. The investment aligns with the Mexican government’s Plan México, aimed at fostering industrial development and regional prosperity. According to Ximena Escobedo Juárez from the Ministry of Economy, this initiative will generate 2,000 direct and 10,000 indirect jobs Currently, 85% of Home Depot’s products in Mexico come from local suppliers, with a goal of reaching 100% by 2028 Additionally, Home Depot will expand its digital strategy and sustainability efforts, with nearly half of its stores already using renewable energy
Source: EL ECONOMISTA
MAQUILA INDUSTRY COULD NOT PAY VAT TWICE
The Supreme Court of Mexico (SCJN) is set to rule on a dispute between the Tax Administration Service (SAT) and maquiladoras over alleged unpaid VAT on "virtual exports " The SAT's interpretation could result in a double VAT charge raising it from 16% to 32% affecting 6,520 export maquiladoras Business groups warn this could lead to bankruptcies and deter foreign investment, with estimated liabilities reaching 44 billion pesos. The dispute centers on the V5 customs procedure, which maquiladoras argue justifies VAT exemptions. However, the SAT claims the misuse of this system allows for tax evasion Industry leaders emphasize the ruling’s potential to jeopardize 3 2 million jobs and demand a fair resolution to maintain economic stability, especially now under uncertainty due to Trump’s tariff threat Some companies have hinted at relocating operations if the double tax burden is imposed The decision could significantly impact Mexico’s investment climate and export sector
Source: EL MILENIO
HOT TOPICS: Legislative and Regulatory Issues:
LABOR
BILL TO AMEND LABOR AND SOCIAL SECURITY LAWS ON MATERNITY AND PATERNITY LEAVE
Presented by: Sen. Blanca Judith Díaz Delgado (NL - PT)
Objective: Mandates a 15-working-day paid paternity leave for fathers, applicable for childbirth and adoption Expands maternity leave to 42 days before and 84 days after childbirth, with salary retention, job security, and full labor rights. In cases of children born with disabilities or requiring hospitalization, postnatal leave may extend up to eight weeks Adoptive mothers will receive an 84-day paid leave. Prohibits pregnant women from engaging in strenuous or hazardous work
Status: 2025-02-26 - Published in the Parliamentary Gazette
BILL TO AMEND ARTICLE 123 OF THE MEXICAN CONSTITUTION ON MATERNITY AND PATERNITY LEAVE
Presented by: Sen Blanca Judith Díaz Delgado (NL - PT)
Objective: Expands labor protections for pregnant women, prohibiting them from performing strenuous or hazardous work and granting a mandatory maternity leave of 42 days before childbirth and 84 days after, with full salary, job security, and retained labor rights Additionally, establishes a 15-working-day paid paternity leave for fathers, applicable both for childbirth and adoption.
Status: 2025-02-26 - Published in the Parliamentary Gazette
POLITICAL
BILL TO REFORM THE CONSTITUTION ON NATIONAL SOVEREIGNTY AND SECURITY
Presented by: Joint Committees on Justice, Legislative Studies, and Constitutional Affairs
Objective: Adds terrorism to the list of crimes warranting mandatory pretrial detention Establishes the strictest penalties and mandatory pretrial detention for nationals or foreigners involved in the illegal manufacture, distribution, sale, transport, or smuggling of weapons into Mexico Strengthens constitutional provisions against foreign intervention in Mexico’s sovereignty, explicitly rejecting coups, election interference, and territorial violations Requires Congress and state legislatures to align their laws within 180 days.
Status: 2025-02-26 - Approved, sent to the Chamber of Deputies
BILL
TO AMEND AND ADD VARIOUS ARTICLES
TO THE FEDERAL LAW ON THE PROTECTION OF PERSONAL DATA HELD BY PRIVATE PARTIES
Presented by: Sen José Clemente Castañeda Hoeflich (LNal - MC) (View actor profile)
Objective: Amend the Federal Law on the Protection of Personal Data Held by Private Parties to exclude credit information companies, introduce new definitions, strengthen consent requirements, establish security measures, regulate automated profiling, and update penalties in line with the Unit of Measurement and Update (UMA)
Status: 2025-02-25 - Published in the Parliamentary Gazette
ENERGY
BILL UNDER DISCUSSION TO ISSUE NEW ENERGY SECTOR LAWS AND REFORM EXISTING LEGISLATION
Presented by: Joint Committees on Energy and Legislative Studies
Objective: Issue new laws for stateowned enterprises (CFE and PEMEX), defining them as public entities with a special regime for subsidiaries, austerity, public procurement, budgeting, debt, and sustainability The bill strengthens state control over the energy sector, establishes the State’s 54% minimum share in electricity generation, prioritizes PEMEX in oil exploration, reduces its tax burden, and fosters private participation under state oversight
Status: 2025-02-26 - Published in the Parliamentary Gazette
ELECTORAL
BILL ON NON-REELECTION AND ELECTORAL NEPOTISM IN THE MEXICAN CONSTITUTION
Presented by: Senate of the Republic Objective: Prohibits individuals from running for certain public offices if they have or had, within the three years prior to an election, a marital, domestic partnership, or blood/civil relationship (up to the fourth collateral and second affinity degree) with the current officeholder Establishes a ban on immediate reelection for federal deputies and senators
Status: 2025-02-26 - Published in the Parliamentary Gazette
