National Content Increase / US Tax on Remittances

National Content Increase. Minister of Economy Marcelo Ebrard reported that on May 14, President Claudia Sheinbaum signed the "Voluntary Agreement for the Increase of National Content,” aiming to increase the availability of Mexican-made products in self-service stores, department stores, specialized stores, retailers, e-commerce platforms, and other sale points. The initiative aims to strengthen the country's economy by prioritizing national production and manufacturing. The agreement will be in effect from 2025 to 2028. Initially, 22 business groups signed the agreement, with the possibility of more companies from the sector joining.

Ebrard said national content is projected to go from 50% to 70% in the self-service sector. For department stores, the increase will be from 30% to 42%. Retailers will also see an increase from 50% to 70% in their national content. In the case of pharmacies, national content is expected to increase from 40% to 55%. Digital commerce platforms commit to promoting and commercializing Mexican-made products, as well as highlighting and positioning these products in their marketplaces.

US Tax on Remittances to Mexico. President Sheinbaum expressed her rejection of a proposal in the US Congress to impose a 5% tax on remittances. She highlighted that the proposal is progressing through a committee and still requires approval from another committee and then the full legislative body.   

Sheinbaum stressed that such a tax would represent a double taxation for Mexican migrants in the United States, as she asserts they already pay taxes there, an action she said was unconstitutional within the United States.   

Sheinbaum pointed out that the Ministry of Foreign Affairs (SRE) and Mexico's Ambassador to the United States, Esteban Moctezuma, are in communication with US legislators to present all arguments against the proposed measure. Sheinbaum said that if necessary, mobilizations would be organized.