From Trade to Water: Key Updates on Mexico’s Economy

Trump opens the door to replacing USMCA with separate bilateral deals between the United States, Mexico, and Canada. Experts warn of slower customs operations, delayed trade, and short-term market volatility as political gridlock continues.

Ready for more? Here is your weekly roundup!

Trump Suggests Replacing USMCA With Bilateral Deals

President Donald Trump announced the possibility of replacing USMCA with separate bilateral agreements. The remarks were made in the Oval Office during Canadian Prime Minister Mark Carney’s visit, at a joint press conference. 

US Government Shutdown Worsens Alarming Mexican Businesses

The budget stalemate in the United States government entered its seventh day on Oct. 7 with no resolution in sight, creating uncertainty for Mexican companies. Both Democrats and Republicans have signaled their willingness to prolong the standoff as President Donald Trump announced the first wave of federal employee layoffs. Since the shutdown began on Oct. 1, both parties have refused to compromise, blaming each other for the deadlock.

Lower House Approves Customs Law Overhaul

The Finance and Credit Commission of Mexico’s Lower House approved a bill amending the Customs Law, increasing sanctions and broadening the duties of customs brokers. Carol Antonio Altamirano, Chairman, Finance Commission, noted that five modifications were made to the executive’s original proposal, which he said, “strengthen and improve the initiative.”

CDMX Expands Water Program to Serve 250,000 Residents

Mexico City Mayor Clara Brugada inaugurated six new facilities under the Water for Well-Being program, increasing the total number of operational plants to 11 across several boroughs. The program now produces 12,000 water jugs per day, distributed free of charge in 400 neighborhoods and benefiting over 250,000 residents, who pay only MX$5 per jug.

Mexico Struggles to Meet Water Delivery Deadline

On Oct. 24, Mexico is expected to deliver 2.158 billion m3 of water to the United States under the 1944 binational water treaty. As of Oct. 1, the country had only sent 46.4% of the required volume, leaving more than half still pending just three weeks before the end of the current five-year cycle. While the treaty allows for extensions, failure to meet the obligation is likely to reignite tensions with the United States.

Mexico Debates 16 Proposals to Cut Workweek to 40 Hours

Mexico's Chamber of Deputies now holds 16 separate legislative initiatives that propose a reduction of the national workweek. Most of these proposals aim to establish a 40-hour weekly limit. The legislative push gained momentum with two new projects introduced on Oct. 7, one from the Labor Party (PT) and another from the Citizens’ Movement (MC).