May 23-30, 2025
HOT TOPICS:
Trump'sTariffsremainin effectaftercourtappeal
MARK CARNEY INVITES SHEINBAUM TO G7 SUMMIT
Earlier this week, the new Prime Minister of Canada, Mark Carney extended an invitation to the G7 summit to President Sheinbaum Although there is no official response from the Mexican President, this event could pose significant implications for Mexico and its relations with its North American neighbors
Originally, the G7 Summit is an informal group composed of the US, Canada, Japan, Britain, France, Germany, and the head of the European Union Commission. Meaning Mexico is not part of this group of countries In this sense, a formal invitation could bring more leverage to the table for both Mexico and Canada Nevertheless, this could also be seen as a bilateral move between the two countries, by defacto ruling out the United States In other words, an invitation from both the US and Canada could be the only way Mexico participates in this summit
Source: EL FINANCIERO
On May 29th, a US Court of International Trade had invalidated with immediate effect all of President Trump's tariffs that fell under the International Emergency Economic Powers Act (IEEPA), a law meant to address "unusual and extraordinary" threats during a national emergency. Tariffs that were ruled out because they are not part of IEEPA were pharma, semiconductors, automotive, steel & aluminum According to the Court, President Trump exceeded his faculties because Congress has the authority to regulate commerce with other countries; meaning that the President's emergency powers do not override the powers of the Legislative branch After this event, the markets responded favorably; the US Dollar surged against other currencies such as the Swiss Franc and the Japanese Yen
Nevertheless, this decision was quickly revoked only one day later when The United States Court of Appeals for the Federal Circuit in Washington paused the Court of International Trade's appeal Now, a final decision is pending, and the Federal Court ordered the plaintiffs in the cases to respond by June 5 and the administration by June 9
If successful, this event could have given the US's trading partners, including Mexico, important leverage to negotiate more favorable trade terms. In the case of the USMCA, both Mexico and Canada would have held a more positive position for the coming review later this year.
Source: REUTERS
USMCA NEGOTIATIONS TO BEGIN SEPTEMBER 2025
Formal negotiations to review the USMCA will begin between late September and early October 2025, according to Secretary of Economy, Marcelo Ebrard. The review, scheduled for July 2026, aims to reduce investment uncertainty and strengthen North American relations Furthermore, Ebrard talked about the agreement’s unique benefits, including tariff-free access for most of Mexico-U S trade The process was accelerated by a Trump administration executive order in February 2025. Moreover, while tariff threats from the U S concern Mexican officials, judicial reforms in Mexico do not currently worry Washington, according to Ebrard; he stated that trade disputes could have a more negative impact than the judicial process
Source: EL FINANCIERO
HOT TOPICS:
Judicial Electionwill takeplace on June 1st
On June 1, 2025, Mexico will have its first judicial election, following the 2024 constitutional reform by former President López Obrador. The reform transitions judicial jobs to a popular vote system, affecting federal and local positions across 19 states Over 7,000 candidates will run for the Supreme Court, tribunal members, magistrates, and numerous circuit and district court judges Furthermore, the Ministry of Labor and Social Security (STPS) stated that it will not be a mandatory rest day due to being an extraordinary election, but employers must grant employees the necessary time to vote
The reform has sparked controversy over potential threats to judicial autonomy Critics argue that public voting incentivizes populism over legal expertise and introduces risks of political and criminal influence Furthermore, there are concerns over MORENA's dominance in evaluation committees and the candidate selection Civil society unrest includes a possible CNTE teacher union protests and threats of boycotts, because of the federal government's lack of dialogue and insufficient reform proposals. Further critiques state logistical flaws and low voter turnout, expected to be below 15% Moreover, there are concerns over possible voter manipulation, limited polling stations, delayed results, and questionable neutrality by the INE. In the long term, possible risks are the loss of judicial experience, weakening of democratic checks and balances, and less investment confidence
Source: EL ECONOMISTA
TO BOOST INVESTMENT IN THE PHARMACEUTICAL INDUSTRY
President Claudia Sheinbaum announced a new decree linking government pharmaceutical contracts to companies’ investments in Mexico. The initiative aims to strengthen the national pharmaceutical industry, reduce costs, and create jobs In this sense, companies must demonstrate local investment, comply with Cofepris standards, and offer competitive pricing to qualify for contracts Moreover, the plan includes collaborations with Birmex, innovation clusters, and bioindustrial parks. Foreign and domestic firms are already pursuing over 20 investment projects The decree prioritizes generic medicine contracts and mandates reinvestment commitments for patented drug purchases.
BBVA WILL INVEST $100 BILLION PESOS OVER SIX YEARS
BBVA México announced a record investment of over 100 billion pesos over the next six years to boost its technology and infrastructure BBVA Group President Carlos Torres Vila emphasized the move as a sign of long-term confidence in Mexico and its 30 million customers.
The bank reported a 25% increase from the previous year. Despite concerns over tariffs and global uncertainty, Torres Vila said BBVA remains optimistic about Mexico’s medium-term outlook, focusing on innovation and sustainability
Source: EL ECONOMISTA GROWTH FORECAST IS LOWERED
The Bank of Mexico lowered its 2025 economic growth forecast once again to 0 1%, down from 0 6% Although the economy is weak, the Governing Board said this does not mean a recession The outlook reflects lower demand from the U.S., effects from new tariffs, and limited public spending due to fiscal adjustments Growth for 2026 is also expected to go downwards Moreover, business confidence is falling, and fewer jobs are expected to be created than previously forecast
Source: EL ECONOMISTA
SHEINBAUM ANNOUNCES DECREE
HOT TOPICS: Legislative and Regulatory Issues:
TECHNOLOGY
Initiative With Draft Decree To Issue
The General Law On Digital Rights
Presented by: Parliamentary Group of Movimiento Ciudadano
Objective: Establishes a legal framework to guarantee digital rights, ensure ethical use of technology, prevent discrimination in digital environments, protect privacy, promote digital inclusion, and uphold the right to disconnect outside work hours.
Status: 2025-05-27 – Published in the Parliamentary Gazette
ENVIRONMENTAL
Initiative With Draft Decree To Amend Article 153 Of The General Law Of Ecological Balance And Environmental Protection
Presented by: Deputy Amparo Lilia Olivares Castañeda (NL - PAN)
Objective: To establish that the importation of hazardous materials or waste for treatment, recycling, or reuse may only be authorized when its use complies with current laws, regulations, official Mexican standards, and other applicable provisions, and when there is proper environmental, economic, and health justification
Status: 2025-05-27 – Published in the Parliamentary Gazette
Initiative With Draft Decree To Amend Various Provisions Of The National Waters Law
Presented by: Deputy Carlos Alberto Guevara Garza (NL - PVEM)
Objective Establishes that CONAGUA, in coordination with the Basin Organizations, must work with the relevant municipal authorities to promote water culture principles within administrations and among the public. Special emphasis should be placed on shared responsibility in the efficient use of water resources and in preventing their waste
Status: 2025-05-27 – 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
