As Mexico recovered from Carnival weekend — and Valentine’s Day — President Sheinbaum kicked off the third week of February with the announcement of new incentives for Mexico’s film industry. Soon after, Mexico and Canada shared plans to deepen their economic ties while Mexico rejected U.S. President Trump’s invitation to join his Board of Peace. Tariffs and trade pressure continued to be dominant themes throughout the week, which ended with a U.S. Supreme Court decision that struck down many Trump tariffs, including duties levied on Mexican exports. Through it all, Mexico continued to make progress on its many security challenges, with high-profile arrests as well as drug and fuel smuggling busts.
Didn’t have time to read this week’s top stories? Here’s what you missed.
Diplomacy and trade: Navigating Washington while courting Ottawa
Sheinbaum launched the week with a major announcement: a new film tax incentive offering productions a 30% income tax credit on Mexico-based expenditures, up to 40 million pesos per project. Salma Hayek appeared at the National Palace to celebrate the initiative, calling it a long-overdue moment of support for Mexican cinema.
Perhaps the most significant diplomatic and economic story of the week was Mexico and Canada’s move to formalize their partnership in the face of continued U.S. pressure. Economy Minister Marcelo Ebrard announced Monday that the two countries are preparing a joint economic action plan to be unveiled later in 2026, focusing on minerals, infrastructure, supply chains and security cooperation. The announcement came as more than 370 Canadian business leaders descended on Mexico City, Guadalajara and Monterrey for what Ebrard called the most significant bilateral private-sector dialogue in recent years.
At her Tuesday mañanera, Sheinbaum framed the initiative not as a pivot away from the United States but as a deepening of existing ties. “More than a plan B, we’re strengthening our relationship with Canada,” she said, while insisting the USMCA would remain in place regardless of the outcome of this year’s trilateral review.
That same Tuesday, Sheinbaum also confirmed that Mexico had declined President Trump’s invitation to join his newly created Board of Peace, citing the exclusion of Palestine from its inaugural Washington meeting. Mexico’s U.N. ambassador will attend as an observer only.
The Government of Mexico, led by President Claudia Sheinbaum, has formally rejected joining the Board of Peace, stating that Palestine is not included at the table as a recognized state entity.
— Drop Site (@DropSiteNews) February 17, 2026
On Wednesday, Sheinbaum expressed cautious hope that U.S. Trade Representative Jamieson Greer’s public remarks about possible “adjustments” to the U.S.’s 50% steel and aluminum tariffs might presage relief for Mexico. “It would be very good,” she said, while acknowledging her government had nothing concrete yet.
Meanwhile, in a counterpoint to trade tensions, the U.S. government announced a $40 million investment in CIMMYT, the International Maize and Wheat Improvement Center headquartered in Texcoco. U.S. Ambassador Ron Johnson described the two countries as “agricultural powers with deeply integrated markets,” and CIMMYT said the funding will support development of drought- and heat-tolerant crop varieties, genetic resources and early warning systems for emerging agricultural pests.
A busy week for security enforcement
Law enforcement racked up significant seizures across the country this week. Federal authorities dealt a major blow to fuel theft networks with a huachicol bust in Minatitlán, Veracruz, seizing more than 149 vehicles, 25 containers, 17 storage tanks and 82,200 liters of stolen hydrocarbons across four raided properties. No arrests were reported.
Fuel smuggling — which is a lucrative business for organized crime — has been the subject of increasing attention and enforcement over the past year. On Thursday, Sheinbaum confirmed that Mexico has sought the extradition from the United States of businesspeople allegedly involved in importing fuel into Mexico without paying taxes, including “the Jensens” — a Utah family facing charges in the U.S. for allegedly smuggling $300 million worth of crude oil in collaboration with Mexican criminal organizations.
Earlier in Sinaloa, more than 100 mothers of the missing marched silently through the Mazatlán Carnival Sunday night, displaying photos of their loved ones to thousands of spectators who responded with applause. The state has seen more than 2,800 homicides since intra-cartel fighting erupted in September 2024.
Meanwhile in Oaxaca, military aircraft intercepted a clandestine plane transporting 534 packages of cocaine — more than half a tonne — near the village of Huamúchil in the Isthmus of Tehuantepec. Suspects fled on stolen motorcycles as locals watched what one reporter described as a “movie-set” scene. No arrests were made in that operation either, though the drugs were secured by the Defense Ministry. Together with other busts, Mexico’s seized a total of nearly 10 tonnes of cocaine over the course of the week.
Como parte de la vigilancia permanente que lleva a cabo la Secretaría de Marina en mares mexicanos, en Manzanillo, Colima, personal de la Armada de México @SEMAR_mx interceptaron un semisumergible que transportaba 179 bultos con aproximadamente 4 toneladas de cocaína y… pic.twitter.com/SqFRAGZykD
— Omar H Garcia Harfuch (@OHarfuch) February 19, 2026
In Michoacán, the investigation into the assassination of Uruapan mayor Carlos Manzo, shot dead at a Day of the Dead celebration last November, inched forward with three more arrests in connection with the case. The suspects were detained in Tarímbaro and are believed to be connected to alleged CJNG member Alejandro Castellanos Villana, himself arrested in December. In a dramatic move, Manzo’s widow — and current Uruapan mayor — Grecia Quiroz filed criminal complaints against three Morena party politicians, including a sitting senator and a former governor of the state, alleging political motives behind the killing.
Finally on Friday, Sheinbaum held her press conference in Irapuato, Guanajuato, where officials presented data showing a 62% drop in homicides in the state in January compared to the same month last year — the lowest daily murder rate since Sheinbaum took office. Security Minister Omar García Harfuch attributed part of the trend to 4,400 arrests in the state over the past 16 months. Guanajuato remains Mexico’s most violent state by total homicides, but officials called the trend “very significant.”
Business and the courts: Investment anxiety persists
A Bloomberg report painted a troubling picture of Mexico’s post-reform judiciary. According to the investigation, companies operating in Mexico are increasingly avoiding the courts in favor of arbitration, and some have delayed investment plans amid concerns about inexperienced judges, erratic rulings and what many see as a politicized system aligned with the ruling Morena party. Coparmex said investment has fallen to pandemic-era lows. The Supreme Court defended the new judiciary and pointed to ongoing training, while Morena senators noted the reform would “take time to mature.” A second round of judicial elections is set for 2027.
But despite some businesses’ hesitation, investment and new projects continue to roll in:
- Houston-based Transition Industries announced it had signed “a long-term firm natural gas supply contract” with CFEnergía to fuel a US $3.3 billion methanol production facility in Topolobampo, Sinaloa.
- A group of Sonora businessmen are developing a homegrown electric vehicle, with the first functional prototype scheduled to be released this summer.
- Netflix opened its new Latin American headquarters in Mexico City, a decision it attributed to the region’s growing market, abundant local talent and new industry incentives.
Infrastructure, tourism and the environment
Mexico’s airports had a mixed 2025. The AICM in Mexico City saw passenger traffic fall 1.7% to 44.6 million — its second consecutive annual decline — while AIFA grew 11.5% to 7.1 million passengers. U.S. flight restrictions, aircraft engine overhauls and ongoing AICM renovations were cited as contributing factors. The government is counting on the 2026 World Cup and a prospective lifting of U.S. flight restrictions to reverse the trend. Meanwhile, the Guanajuato International Airport is set for a 2.88 billion-peso overhaul over the next four years, including a 23% expansion of the terminal building, three new boarding gates and a 58% larger aircraft apron.
On Thursday, Sheinbaum confirmed that the new rail link between central Mexico City and AIFA will open before Easter — welcome news for commuters and travelers, and a step toward the government’s goal of boosting the airport’s passenger numbers.
In the Yucatán Peninsula, a federal appeals court granted a definitive suspension of construction on Section 5 of the Maya Train — the 65-kilometer Cancún-to-Tulum stretch — until authorities verify compliance with environmental regulations. The civil group Sélvame del Tren, which brought the case, cited the loss of 3.6 million trees and damage to more than 120 caves in the region’s aquifer system. The Maya Train’s freight circuit, however, continues to advance, with four multimodal cargo terminals reported at 25% completion.
Mexico City is facing its own environmental problems: The metropolis recorded only three days of acceptable air quality in the first 48 days of 2026, with four Phase 1 ozone alerts already declared — typically the fourth doesn’t arrive until April. Unseasonably high temperatures and a grassland fire east of the capital worsened conditions, with authorities urging vulnerable groups to stay indoors during peak hours.
On the Caribbean coast, the Navy warned that sargassum arrivals could exceed historical averages by 75% during March and April. Some 280,000 tonnes of the brown macroalgae are drifting westward through the Atlantic, with Playa del Carmen already installing the longest anti-sargassum barrier in its history — five kilometers — ahead of the Easter peak season. The timing is particularly sensitive with the FIFA World Cup drawing international attention to the region this summer.
On a positive note, Mexico welcomed 47.8 million international tourists in 2025, up 6.1% from 2024, generating $31.7 billion in revenue. Mexico currently sits sixth on the global most-visited list, with projections suggesting a top-five ranking is achievable by 2040.
Here are some other culture and lifestyle highlights from last week:
- Mexico revamps its museums and archaeological zones ahead of the World Cup
- The San Francisco 49ers announced plans to play in Mexico City later this year
- The Tate Modern will host a blockbuster exhibition on Frida Kahlo’s journey to become a cultural icon
- NASCAR returns to Mexico as part of the upcoming Tulum Air Show
- Isla Pasión wins TripAdvisor’s World’s Best Beach award
Looking forward
The week ahead promises more of the same complexity. Keep an eye out for news on Mexico’s plans for electoral reform, set to be announced in coming weeks, and the possible approval of a 40-hour workweek. Meanwhile the USMCA review timeline, the ongoing crackdown on fuel smuggling and the question of whether steel and aluminum tariff relief actually materializes will all continue to shape the economic climate. For those planning a Caribbean beach vacation, perhaps start checking the sargassum forecasts now.
Mexico News Daily
This story contains summaries of original Mexico News Daily articles. The summaries were generated by Claude, then revised and fact-checked by a Mexico News Daily staff editor.
