Sunday, May 4, 2025

Mexican Senate approves energy sector reform bill

By
MND Staff
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Pemex's Olmeca Refinery in the Dos Bocas Port in Paraiso, Tabasco. (Presidencia/Cuartoscuro)
BusinessesTabasco. (Presidencia/Cuartoscuro)

Mexico’s Senate approved the federal government’s energy reform bill early Thursday, passing legislation that seeks to constitutionally enshrine state dominance in the electricity sector, among other objectives.

Senators with the ruling Morena party and its allies voted to approve the bill shortly after midnight, as did National Action Party (PAN) Senator Miguel Ángel Yunes Márquez, ensuring that the two-thirds threshold to pass constitutional reform proposals was met.

Digital board showing voting progress of the vote on the energy reform bill at 12:25 a.m. Thursday
The reform bill passed easily in the Senate, with a final tally of 86 votes in favor, 39 against, but actual voting took until the early-morning hours Thursday. (Óscar Cantón Zetina/X)

The final count was 86 votes in favor, 39 against and one abstention.

The bill, which was sent to Congress by former president Andrés Manuel López Obrador in February and approved by the Chamber of Deputies last week, will now be considered by Mexico’s 32 state legislatures for ratification.

At least 17 must ratify the reform proposal before President Claudia Sheinbaum can sign it into law. Ratification by a majority of state Congresses is essentially a fait accompli as Morena is in power in more than 20 states. Sheinbaum is expected to sign the bill.

‘A historic error’ 

Promulgation of the bill will result in the revocation of parts of the 2013 energy reform, which opened up Mexico’s energy sector, including the state-owned Federal Electricity Commission (CFE) and state-owned Pemex oil company, to private investment.

While the reform will limit the participation of private and foreign companies in Mexico’s electricity sector, it will not preclude them from playing an important role in ensuring that Mexico can meet demand for power and make the transition to greater use of clean energy sources.

Mexican Senator Ricardo Anaya on the Mexican Senate floor, behind a podium speaking into microphones and gesturing with his index finger.
Senator Ricardo Anaya (PAN) opposed the reform, questioning the benefits of limiting private companies from participating in Mexico’s energy markets. (File photo/Daniel Augusto for Cuartoscuro)

Still, Morena Senator Óscar Cantón Zetina said that the objective of the bill is to “reverse the historic error” made by former president Enrique Peña Nieto’s (2012–2018) energy reform.

In light of its approval, Morena’s leader in the Senate, Gerardo Fernández Noroña, said that it was “another historic day” for Mexico.

Several other constitutional reforms, including one that allows citizens to directly elect all judges and another that placed the National Guard under military control, have been approved by Congress since recently elected lawmakers assumed their positions on Sept. 1.

What are the key aspects of the energy reform?  

  • Once promulgated, the Mexican state via the Federal Electricity Commission will have a constitutional right to generate and supply the majority (54%) of electricity in Mexico. Private companies will share the remaining 46% of the market.
  • The CFE and state oil company Pemex will no longer be called “productive” state companies, but rather “public” state companies. According to a Senate press release, the CFE and Pemex were renamed “productive” state companies on the recommendation of “international financial organizations.” The renaming “distorted the obligation of the state to guarantee the public service of electricity and reduced [its obligation] to the mere obtention of profits,” the statement said.
  • The Bloomberg news agency reported that President Sheinbaum will “gain increased control over Pemex and the national electricity utility” if the reform bill becomes law. The reclassification of Pemex and the CFE from “‘state productive companies’ to ‘public companies’ … would force the companies to prioritize the government’s social and economic objectives over corporate profits,” Bloomberg said.
  • The newspaper El Sol de México reported that CFE and Pemex “will lose their operational autonomy” and will once again “be under government control” after the reform bill becomes law.
  • The bill states that the CFE has the obligation to provide electricity at the cheapest possible price. The CFE will also be able to provide internet services once the bill becomes law.
  • According to the bill, secondary laws will establish how private companies can participate in Mexico’s electricity market. An earlier version of the bill gave the Mexican state sole responsibility for the energy transition. However, that provision was removed, ensuring that private companies can operate renewable energy facilities in Mexico and thus help the federal government reach its renewable energy targets.
  • According to the bill, state energy companies won’t be considered as having monopolies, even if they have complete control of an industry, as will be the case in Mexico’s nascent lithium sector with the state firm Litio para México (Lithium for Mexico).
  • The bill “returns energy sovereignty to the country,” said Senator Cantón Zetina, “given that it establishes that electricity, hydrocarbons, lithium and the internet will no longer be objects of speculation and monopolization by private interests.”

Competing views on the energy reform 

Morena Senator Laura Itzel Castillo Juárez said that the approval of the reform bill provides “firm steps” toward the recovery of Mexico’s energy sovereignty as the legislation reverses changes made in 2013.

During the six-year term of Peña Nieto, the aim of the government was to “dismantle” the CFE and Pemex, “turn them into scrap and hand them over to the highest bidder,” she said.

Green Party Senator Virgilio Mendoza Amezcua said that the 2013 energy reform left the sector “weakened, indebted and at the mercy of [private] economic interests.”

The bill approved by the Senate will allow mistakes of the past to be corrected, he said, adding that it will support the CFE and Pemex, as well as Mexico’s quest to develop the lithium sector.

Shell gas station in Mexico City
Among the provisions of the 2013 reform was allowing foreign companies to explore and produce oil and gas in Mexico for the first time. The new reform limits the share of the Mexican market foreign companies may own. (Moisés Pablo Nava/Cuartoscuro)

Labor Party Senator Alberto Anaya Gutiérrez noted that “the doors are [still] open to foreign capital” in the energy sector, but said that the reform will ensure that the Mexican state takes the leading role in the nation’s electricity and oil industries.

For her part, PAN Senator Imelda Sanmiguel Sánchez asserted that the reform seeks to “saddle” Mexican citizens with the debts of the CFE and Pemex, the world’s most indebted oil company.

The future of the following generations will be placed at risk “under the nationalist argument of energy sovereignty,” she said.

PAN Senator Ricardo Anaya, a presidential candidate in 2018, questioned the need to limit private companies’ participation in electricity generation.

“We believe it’s folly because in the end what people want are three things: clean energy, number one; cheap energy, number two; and abundant energy, number three,” he said.

“We can’t support the reform while the CFE continues burning fuel oil to generate electricity,” Anaya said.

While former president López Obrador championed the ongoing use of fossil fuels to generate electricity, President Sheinbaum is committed to increasing the use of renewable sources and has pledged to invest some US $13 billion in a renewables-focused energy plan.

On Wednesday, Senator Ricardo Anaya also said that the reform could create difficulties for Mexico at the 2026 review of the UMSCA free trade pact given that it limits foreign investment in the energy sector.

Institutional Revolutionary Party Senator Mely Romero Celis asserted that the reform “subsidizes inefficiency” in the CFE and Pemex and is “a backward step disguised as progress.”

She also claimed that the CFE and Pemex don’t have the capacity to support themselves without collaborating with private companies.

With reports from El Financiero, La Jornada, Latinus, Aristegui Noticias and El Sol de México

Mexico to make its own EV

By
MND Staff
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Olinia, which means “to move” in Nahuatl, will be designed as an affordable EV for Mexican families and young people, with competitive prices compared to other available brands.
Olinia, which means “to move” in Nahuatl, will be designed as an affordable EV for Mexican families and young people, with competitive prices compared to other available brands. (Shutterstock)

This week, President Claudia Sheinbaum gave further details about her plans to produce an electric vehicle (EV) that is fully manufactured and assembled in Mexico. 

The president first mentioned the EV during her inaugural speech at Mexico City’s Zócalo on Oct. 1. “Mexicans have creativity, determination and capacity to spare. So, we will produce ‘Olinia,’ a small, 100% electric, accessible car, designed by young people and assembled in our country,” Sheinbaum said.

The project seeks to establish Mexico as a major car producer, a goal of the Technological Development Program for Innovation, one of Sheinbaum’s 100 commitments for her presidency.

Although the country has seen significant growth in the assembly of electric and hybrid vehicles, Mexico has yet to manufacture and export a domestically designed electric vehicle model.

Where will Olinia be manufactured?

During her morning press conference on Oct. 15, Sheinbaum said that Olinia could be produced in Sonora, one of several northern states with low electricity prices.  

After the announcement, Governor Alfonso Durazo Montaño thanked Sheinbaum on his official X account for considering Sonora as a potential production hub for Olinia.

In a follow-up comment, he emphasized Sonora’s suitability for EV production, citing the state’s promising potential to develop its clean energy sector.

Sheinbaum said on Tuesday that her government is considering the northern state of Sonora for the production of the EV Olinia. (Cuartoscuro)

“[Olinia] will represent an important step towards the transition to clean energy in Mexico,” Durazo stressed.

How much will it cost?

Olinia, which means “to move” in Nahuatl, will be designed as an affordable EV for Mexican families and young people, with competitive prices compared to other available brands.

It is expected to cost under 500,000 pesos (US $25,000), a price tag lower than that of EVs currently available in the national market, such as the SEV E-Wan Cross, the BYD Dolphin Mini and the Tesla Model 3.

Is Olinia Mexico’s first-ever EV? 

Although both Sheinbaum and Durazo said that Olinia would be Mexico’s first-ever EV, Olinia will be the second EV model to come out of Mexico. 

Zacua launched production of the first Mexican-made EV in 2018.
Zacua launched production of the first Mexican-made EV in 2018. (Cuartoscuro)

In 2018, Zacua launched its manufacturing plant in Puebla to produce two models of EVs: the Zacua MX2 and the MX3. Both are exempt from paying tenencia (ownership tax) and from verificación (a vehicle inspection only applicable in Mexico City). 

Zacua EVs can be bought in their Mexico City showroom or online. 

With reports from Meganoticias, El Sol de Hermosillo, NMas and El Universal

Mexican slang 101: Chingar

By
Alasdair Baverstock
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Mexican slang dictionary: Chingar
It's Mexico's favorite curse word. What does it mean? (Facebook)

Se chingó un chingo de chongos.

It’s the most Mexican of curse words, and a phrasal verb whose meanings span the cultural spectrum. You may not like it, but you’d better make sure you understand it.

lopez obrador
“Que vetes a la chingada wey.” (lopezobrador.org)

The author of The Mexican Slang Dictionary, Alasdair Baverstock, shows you how best to employ this nation’s favorite rude word. We have translated the spirit of each phrase here, but please be aware that the word “chingar” has much stronger connotations, so be careful when and where you use it!

A Chingar a su Madre – expression Aggressive expression indicating that something has reached its conclusion, and that participants and onlookers should depart.

e.g.    Y con eso terminamos, y a chingar a su madre.

It’s finished, please leave.

Chinga! – exclam 

  1. Darn!
  2. Wow!

En Chinga – adj

  1. Hurried, or under pressure.
  2. Busy.

Chinga su Madre! – exclam  ‘To hell with it!’ Used in the context of taking a quick decision.

e.g.      La luz esta en roja, pero Chinga su Madre! Me la como.

The traffic light is red but Fuck it! I’m running the light.

(DEM/Colmex)
@jesrp01 #ohquelachingada entonces que quieres que haga, eh! #parati #foryou ♬ sonido original – JESUS RODRIGUEZ PONCE

Chingada Madre! – exclam Expressing frustration or annoyance. Best translated as ‘Ah damn it’!

Chingadera – noun Something without value or importance.

Chingarle – verb To put effort into something.

Chíngatelo – imperative

  1. Finish whatever you are doing quickly, most commonly used with a beer.
  2. Instructing an individual to steal something.

Chingarse – verb

  1. To steal, shoplift or ‘nick’ something.

e.g. Se estan chingando la lana.

They are stealing the money.

  1. To eat something quickly.

e.g. Se chingó ese bistec.

       They scoffed that steak down.

Se chingó – expression It failed, or it is ruined.

Chingón –

  1. adiVery common expression meaning that something is excellent, or of top quality.

e.g. Ese diccionionario esta chingón!

       This dictionary is great!

  1. nounAn impressive or powerful individual; the best in their own field.

e.g. El es un chingón

       He’s the best.

Chingonería – noun Something of superb quality.

         e.g.    Que chingonería güey!

                   What a great thing dude!

Esau Fernandez fights a bull in San Cristobal de las Casas, Chiapas
This bull is about to have it’s “chingada” both given and taken. (@PrensaEsau/Twitter)

Hecho la Chingada – expression Moving at a very fast pace, most commonly referring to irresponsible motorists.

No me chingues – expression Don’t nag or bother me.

Me lleva la Chingada – exclam Expressing surprise, furstration or anger. In this expression, the chingada can also be substituted for other nouns: la fregada, la tiznada, la trampa, la trompada and also commonly, la verga.

Un Chingo – expression A lot, many or much. Can be used in reference to actions, as well as both countable and uncountable nouns.

e.g.    Ella tiene un chingo de coches.

         She has a lot of cars.

e.g.    El tiene un chingo de dinero.

He has a lot of money.

e.g.    Duele un chingo.

It hurts a lot.

Una Chinga – noun

  1. A task which takes a great deal of effort.
  2. A physical beating.

You can buy The Mexican Slang Dictionary on Amazon in the U.S., Canada, and Mexico.

MND readers can find the physical book stocked in bookstores:

Mexico City: Under The Volcano Books, La Condesa

San Miguel de Allende: Aurora Books

Alisdair Baverstock is the Mexico City-based author of The Mexican Slang Dictionary.

Live in Mexico City? You might have fake pesos in your pocket

By
MND Staff
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Almost half of the phony bills identified between January and September were located in just three federal entities: Mexico City, México state and Jalisco.
Almost half of the phony bills identified between January and September were located in just three federal entities: Mexico City, México state and Jalisco. (Moisés Pablo/Cuartoscuro)

Double check your change!

More than 200,000 fake banknotes were detected in Mexico in the first nine months of 2024, according to the Bank of Mexico (Banxico).

Hands holding 50 peso notes
The 20 and 50-peso bills, and most 100-peso ones, are made out of polymer, making them more difficult to forge. (Cuartoscuro)

The central bank reported that it identified 224,390 counterfeit bills between January and September.

That means an average of around 822 fake notes were detected every day in the period.

Almost half of the phony bills identified between January and September — 108,835 or 48.5% of the total — were located in just three federal entities: Mexico City, México state and Jalisco.

Almost one-third of the fake banknotes were found in the capital, while more than 10% were located in México state, which includes many municipalities that are part of the Mexico City metropolitan area. Just over 7% of the billetes falsos showed up in Jalisco.

Baja California Sur and Campeche were the only two states where fewer than 1,000 fake bills were detected in the first nine months of the year.

Based on the January-September data, the Bank of Mexico is on track to identify just over 300,000 fake banknotes this year, a figure which would represent a small increase compared to 2023.

Banxico identified 299,476 counterfeit bills last year, a 17% decline compared to the record-high 360,926 fakes that were found in 2022.

What is Mexico’s most counterfeited banknote? 

According to Banxico, the 200-peso note is currently Mexico’s most forged bill.

Two hands count Mexican pesos, a currency that is recovering from a recent depreciation
The most forged bill is the 200 peso note, of which there are two designs in circulation: Sor Juana Inés de la Cruz and Miguel Hidalgo with José María Morelos. (Cuartoscuro)

Data shows that the central bank has identified 50.9 fake 200-peso bills this year for every 1 million in circulation.

The second and third most counterfeited notes this year are the 500 peso and 1,000 peso bills, respectively.

The 200, 500 and 1,000 peso notes are all made out of paper, unlike the 20 and 50 peso bills, and most 100-peso ones, which are made out of polymer.

In January, Mexico City police arrested two alleged members of a counterfeiting and drug trafficking ring, and seized around 200,000 pesos (US $10,000) in apparent fake cash.

More allegedly counterfeit 500-peso bills were seized in the capital in April.

How to spot a counterfeit note

Earlier this year, the website Mexperience published an article entitled “Tips for spotting counterfeit Mexican banknotes.”

“When you’re handling Mexican banknotes, be sure to feel the paper; it should feel the same as, for example, US or Canadian dollars, British pounds, or euros,” says Mexperience.

“If the note doesn’t ‘feel’ right — paper used for counterfeit notes is often thicker than genuine banknote paper — check for additional security features,” the article continues.

Read the full article here.

Mexican pesos laid out on a car seat next to a shopping bag
Paper used for counterfeit notes is often thicker than genuine banknote paper. (Mexico City SSC).

On its website, the Bank of Mexico says it offers “training to identify security features in Mexican banknotes for financial institutions, legal authorities, government institutions, companies, and the general public.”

The training (Spanish only) can be completed in person in Mexico City or online. More information is available here.

What should you do if you think you have a fake bill?

According to Banxico, “if you have a banknote/coin which you believe is not authentic (presumably counterfeit/forged), do not continue using it.”

“Paying with a counterfeit banknote/coin is a federal crime punishable by up to 12 years in prison. You must turn it in to any bank so that they can send it to the Bank of Mexico to be analyzed. The Bank of Mexico is the only institution in Mexico that can determine whether a banknote/coin is authentic or counterfeit,” Banxico says.

“If at the moment of paying you are told that your banknote/coin seems counterfeit/forged, ask them to return it to you so that you can take it to a bank. Only banks can retain presumably counterfeit banknotes/coins and, in exchange, they must give you a receipt,” the central bank says.

“The bank must then send the presumably counterfeit banknote/coin to the Bank of Mexico to be analyzed,” it adds.

With reports from Expansión

10 easy steps to help keep Mexico’s beaches clean

By
Debbie Slobe
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Keep mexico's beaches clean
Mexican beaches are often overrun with waste from holidaymakers. Here's how you can play your part in keeping Mexico's perfect beaches... perfect. (Carlos Alberto Carbajal/Cuaroscuro)

Our little town of Chacala recently experienced a waste crisis when the trash pickup service stopped for several weeks. The landfill that usually accepts our garbage had caught on fire — the second time this year — and couldn’t take more waste until it was under control. Piles of trash accumulated on every street corner. Rotting food, plastic bags and bottles, styrofoam containers, soiled toilet paper, and other unmentionables were strewn everywhere. 

The county government provided no alternate plan for trash removal, leaving the community on its own to figure out a solution. Several Chacaleños rallied to pay for dump trucks to haul trash away, at a cost of tens of thousands of pesos. 

Beach towns might seem like a weekend paradise – but spare a thought for what happens after the crowds go home. (Elizabeth Ruiz/Cuartoscuro)

The crisis got me thinking about just how much trash is left behind on Mexico’s beaches, how waste removal is handled (and mishandled), who is responsible, and how we can all do a better job reducing waste, especially tourists.

Tourists often complain about how much litter is on Mexico’s beaches and assume that local Mexicans are primarily responsible. This is not only condescending and harmful cultural stereotyping, it couldn’t be further from the truth. Foreign tourists and out-of-area visitors contribute far more waste than locals, putting extreme pressure on communities to keep beaches clean with little to no government support. 

Take Chacala as an example, our resident population is about 500 people. But on any given weekend or holiday, we can see our population quadruple to 2,000 people or more. Mondays are the worst day to walk the beach after everyone has gone and the evidence is left behind – styrofoam plates, plastic cups and bottles, dirty diapers, plastic bags, cigarette butts – you name it. While plenty of people use the trash cans provided, there is simply too much waste for them to hold.

And when the garbage cans are overflowing, it falls on community members and local business owners to organize volunteers to clean up or pay someone to collect it, all at their own time and expense.

Beach cleanups are often run by local communities, at their own expense. (Elizabeth Ruiz/Cuartoscuro)

Instead of complaining about trash, here are some ideas for visitors to help keep beaches clean:

  1. Separate your trash: Much of the waste people generate is recyclable or biodegradable. You can reduce the amount of waste that ends up in landfills by separating recyclables and food waste from other trash. Many beach towns have receptacles or collection centers for recyclables and organics. 
  2. Bring reusable shopping bags: This is already common practice in many parts of the world, but for some reason, when people go on vacation, they seem to forget. When you travel, pack your good habits and a few reusable bags with you. Or buy some bags here. Mexico has one of the longest reusable market bag traditions in the world.
  3. Buy more whole foods: Fill those reusable bags with fresh fruit, vegetables, bread, tortillas, and other goods that can be bought locally and don’t come in plastic packaging. 
  4. Bring a plate to taco stands: No one can resist the temptation of a street taco, but you can resist being given a styrofoam plate to eat it on. Next time you have a hankering for a taco, leave no trace and bring your plate (and cloth napkin) with you.
  5. Order drinks that come in returnable bottles: Skip beverages that come in plastic bottles and choose ones that come in returnable glass bottles or are made fresh in large batches like aguas frescas that are served in glass cups or clay mugs. 
  6. Bring a to-go container to restaurants: If your eyes are bigger than your stomach and you often have leftovers when eating out, make sure to bring a reusable container to bring leftovers home instead of having the restaurant put them in a styrofoam box.
  7. Patronize businesses that reduce waste: It’s becoming more common in Mexico (and in some cities, it’s the law) to not use disposable plates, bags, and other items at shops and restaurants, and opt for natural and biodegradable products. (We have a local ice cream shop in Chacala that uses coconut husks as bowls!) Seek out and patronize those businesses that are taking action to reduce waste.
  8. Put trash in cans with lids: Leaving trash in bags on the street attracts dogs that scatter it around and leave a mess. Put trash in a can with a lid, and if your hotel or rental doesn’t have one, be a champ and buy one for them.
  9. Collect trash while walking the beach: Since you are likely to walk the beach anyway, why not bring a trash bag with you and pick up some litter along the way?
  10. Donate to local limpieza efforts: The community you are visiting most likely has an environmental committee or limpieza campaign that is working to educate the public and raise money for waste removal, reduction, and recycling efforts. Ask around and find the groups in your community you can support.

This goes without saying, but companies that produce throw-away products are the real culprits of the world’s waste problem, not consumers. We are pressured to make better choices, and that certainly helps, but it’s corporations that need to be responsible for the life cycle of their products. As a society, we must continue to advocate for laws that hold companies accountable for the waste they produce, and as consumers, we must stop supporting companies that contribute to the problem.

Debbie Slobe is a writer and communications strategist based in Chacala, Nayarit. She blogs at Mexpatmama.com and is a senior program director at Resource Media. Find her on Instagram and Facebook.

Sheinbaum to CEOs: ‘Your investments are safe in Mexico’

By
MND Staff
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President Claudia Sheinbaum met with more than 200 business leaders at the United States-Mexico CEO Dialogue meeting in Mexico City on Tuesday.
President Claudia Sheinbaum met with more than 200 business leaders at the United States-Mexico CEO Dialogue meeting in Mexico City on Tuesday. (Andrea Murcia/Cuartoscuro)

None of the federal government’s recently approved and proposed constitutional reforms will be detrimental to investment in Mexico, President Claudia Sheinbaum said Tuesday after meeting with more than 200 business leaders at the United States-Mexico CEO Dialogue meeting in Mexico City.

In support of that assertion, Sheinbaum and Economy Minister Marcelo Ebrard told reporters that companies on Tuesday announced plans to invest more than US $20 billion in Mexico in 2025. However, the bulk of the investments had previously been announced.

Sheinbaum with Michael Bloomberg
Sheinbaum said that there will be ongoing dialogue between the government and the business sector to clear up “any doubts” they have about the policies of her administration. (Presidencia/Cuartoscuro)

At a press conference at the National Palace, Sheinbaum said that the meeting with 240 business leaders was “very good” and asserted that the government addressed the concerns the business sector has about the recently enacted judicial reform as well as a range of reform proposals that have not yet passed Congress, including one aimed at disbanding a number of autonomous government agencies.

She also said that there will be ongoing dialogue between the government and the business sector to clear up “any doubts” they have about the policies of her administration.

“Your investments are safe in Mexico,” Sheinbaum told the CEOs during a speech at the annual meeting.

Referring to the judicial reform, a proposed energy reform currently before Congress and a range of other constitutional bills that former president Andrés Manuel López Obrador put forth in February, the president told the Tuesday afternoon press conference that “none of these reforms represents a problem for investment in Mexico.”

“The opposite is true. The rule of law will be strengthened, the national electricity system will be strengthened,” Sheinbaum said.

Investors are particularly concerned about the plan to allow citizens to elect all of Mexico’s judges, including Supreme Court justices. Many investors — and others — fear that judges sympathetic to the ruling Morena party’s legislative agenda could come to dominate the nation’s courts, effectively removing an important check on government power and possibly posing a threat to their investments.

The energy reform proposals seek to enshrine in the constitution a majority share (54%) of the electricity generation market for the Mexican state, a move that could dissuade private investment in the sector.

Ebrard touts ‘the investment announcements made today’

Early in the post-CEO Dialogue press conference, Ebrard said that “the investment announcements made today in the presence of President Claudia Sheinbaum” exceed $20 billion.

Economy Minister Marcelo Ebrard referred to several investment announcements for 2025in his speech that are neither new nor completely certain.
In his speech, Economy Minister Marcelo Ebrard referred to several investment announcements for 2025 that are neither new nor completely certain. (Andrea Murcia/Cuartoscuro)

The economy minister referred to four investment announcements for 2025.

The Associated Press reported that “much” of the investment announced (or reaffirmed) on Tuesday “was neither new, nor completely certain.”

For example, Mexico Pacific’s plan to build an LNG plant and export terminal on the Gulf of California in Puerto Libertad, Sonora, “has been on the drawing boards since at least 2020, and still depends on getting cross-border gas pipelines approved and built,” AP said.

The company’s CEO, Sarah Bairstow, co-chaired the U.S.-Mexico CEO Dialogue on Tuesday and spoke at Sheinbaum’s press conference at the National Palace.

“We’ve had a wonderfully constructive dialogue here today, very important to the bilateral relationship between the U.S. and Mexico. It’s been fantastic hearing the vision directly from the presidenta herself around investment in the country and the support for these critically needed assets,” she said.

“At Mexico Pacific, we’re proud to be developing the Saguaro Energía LNG facility and accompanying gas pipeline. This represents the largest foreign direct investment into Mexico to date and we’ve certainly reaffirmed our investment on the back of the conditions we see here for investment in Mexico,” Bairstow said.

Ebrard said that Sheinbaum conveyed messages of “certainty” to investors at Tuesday’s meeting, and declared himself that “investments in Mexico are safe.”

During a speech at the CEO Dialogue, Sheinbaum shared that her government is creating an Agency for Digital Transformation and Telecommunications, which aims to expedite investment in Mexico.
During a press conference following the CEO Dialogue, Sheinbaum shared that her government is creating an Agency for Digital Transformation and Telecommunications, which aims to expedite investment in Mexico. (Andrea Murcia/Cuartoscuro)

Sheinbaum: Investment approvals to be expedited 

Sheinbaum told the CEO dialogue attendees that “starting in January next year, we’re going to create the Agency for Digital Transformation and Telecommunications.”

“In a single institution we’re going to concentrate everything related to the simplification and digitalization of bureaucratic procedures,” she said.

“This will allow an investment to become reality in months, instead of two or three years.”

At the press conference, Sheinbaum said that a bill allowing the creation of the new agency will be presented to Congress “very soon.”

“… One of the reasons why national and foreign investors avoid investing in Mexico is because of the delay in [completing] bureaucratic procedures,” she said.

“… If we facilitate this, it’s an enormous incentive [for investors],” she said.

Sheinbaum also told reporters that the government outlined its “investment strategy” to the U.S. and Mexican business leaders present at the meeting.

“[It includes] investment in housing, investment in trains, investment in highways, investment in ports, … investment in infrastructure in general,” she said.

“… Essentially that was the dialogue. The majority of [business] chambers were present, as well as Mexican business people … and [there was] a very important representation of United States companies,” she said.

Asked about the 2026 review — or even renegotiation — of the USMCA, Sheinbaum said she hoped to largely keep the North American free trade pact as is.

“We have the idea of maintaining the agreement with few modifications,” she said.

Francisco Cervantes, president of Mexico’s influential Business Coordinating Council, told the same press conference that Sheinbaum had made it clear that she is very supportive of investment in Mexico.

“In the voice of the president, the line of action moving forward in Mexico was ratified, and it is [promoting and supporting] investment,” he said.

The new federal government appears determined to take a very proactive approach in seeking new investment in Mexico, as demonstrated by Finance Minister Rogelio Ramírez de la O’s recent meetings with the CEOs of JP Morgan and BlackRock.

In the first six months of 2024, foreign direct investment exceeded US $31 billion, a new record for Mexico. The government hopes that even more impressive numbers can be recorded in the near future as companies act on their investment announcements and other foreign firms are attracted to the country amid the ongoing nearshoring trend.

With reports from El Financiero, El Economista, Reforma and AP

Former security minister Genaro García Luna gets 38 years in US prison

By
MND Staff
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Genaro Garcia Luna in 2011 waving at the camera while Mexico's Federal Police stand at attention in rows to his right
Genaro García Luna was sentenced to 460 months in US federal prison. Prosecutors had asked for a life sentence. (File photo/Moisés Pablo Nava for Cuartoscuro)

Mexico’s former security minister Genaro García Luna was sentenced to just over 38 years in prison on Wednesday, almost 20 months after he was convicted of colluding with the Sinaloa Cartel.

At a hearing in U.S. federal court in Brooklyn, New York, District Judge Brian M. Cogan sentenced García Luna to 460 months’ imprisonment and a US $2 million fine “for his decade-long assistance to the Sinaloa Cartel in exchange for millions of dollars in bribes,” according to a press release from the United States Attorney’s Office.

Genaro Garcia Luna standing next to President Felipe Calderon an a ribbon cutting event in 2013.
Garcia Luna, left, was Mexico’s security minister under President Felipe Calderón, center, (2006–2012). (Octavio Hoyos/Shutterstock)

“Following a four-week trial in February 2023, Garcia Luna was convicted by a jury of engaging in a continuing criminal enterprise, international cocaine distribution conspiracy, conspiracy to distribute and possess with intent to distribute cocaine, conspiracy to import cocaine and making false statements,” the statement said.

García Luna served as security minister in the 2006–2012 government led by former president Felipe Calderón. Before taking up that position he was director of the now-defunct Federal Investigation Agency.

He was arrested in Texas in late 2019.

Calderón has denied having any knowledge of García Luna’s illicit dealings.

United States Attorney Breon Peace said that the sentencing of the 56-year-old — the highest-ranking Mexican official to have ever faced justice in the U.S. — “is a critical step in upholding justice and the rule of law.”

“His betrayal of the public trust and the people he was sworn to protect resulted in more than one million kilograms of lethal narcotics imported into our communities and unleashed untold violence here and in Mexico,” he said.

Garcia Luna’s case attracted protests and the curious outside the Brooklyn federal courthouse where his trial occurred.

“This sentence sends a strong message that no one, regardless of their position or influence, is above the law.”

Drug Enforcement Administration (DEA) chief Anne Milgram said that the sentencing “sends a clear message to corrupt leaders around the world who use their positions of power to help the cartels.”

The message? “No amount of power will shield you from justice.”

“… Instead of protecting the citizens of Mexico, Garcia Luna was protecting drug cartels.  The DEA will continue to relentlessly pursue drug trafficking organizations and those who protect them,” Milgram added.

While serving as security minister, the now convicted and sentenced criminal was a “close partner” of the DEA, “which gave him multiple awards over the years to honor his work fighting crime,” The Los Angeles Times reported.

“At the same time he was receiving DEA accolades, however, he was also leaking secrets to the Sinaloa cartel,” the Times added.

The U.S. Attorney’s Office statement said that “Garcia Luna’s conduct included facilitating safe passage of the [Sinaloa] Cartel’s drug shipments, providing sensitive law enforcement information about investigations into the Cartel and helping the Cartel attack rival drug cartels, thereby facilitating the importation of multi‑ton quantities of cocaine and other drugs into the United States.”

“In exchange for bribes, the defendant’s Federal Police Force acted as bodyguards and escorts for the Cartel, allowing Cartel members to wear police uniforms and badges and helping to unload shipments of cocaine from planes at Mexico City’s airport, then delivering the cocaine to the Cartel. The defendant was paid in U.S. currency, stuffed variously in suitcases, briefcases and duffel bags,” it said.

The statement also said that after he moved to the United States in 2012, García Luna applied for U.S. citizenship in 2018, and on his application “lied about his past criminal conduct on behalf of the Cartel in an attempt to become a U.S. citizen.”

García Luna’s wife and daughter were in the court when Cogan read out the 460-month sentence.

Members of Mexico's Lower House of Congress in session holding up a banner with a photo and the name of Genaro Garcia Luna with the logo of Mexico's National Action Party.
Former president Andrés Manuel López Obrador and his Morena party have frequently used the García Luna case for political currency against the National Action Party (PAN), the party of former president Felipe Calderón, suggesting that Calderón and his party was also corrupt. (Daniel Augusto/Cuartoscuro)

Prosecutors sought a sentence of life imprisonment, but the judge said that the ex-security minister should have “some light at the end of the tunnel.”

He acknowledged García Luna’s work teaching fellow prisoners at the Metropolitan Detention Center but also said that the former federal official lived a “double life,” and the harm he caused outweighed his good deeds.

“Aside from your very pleasant demeanor and your articulateness, you have the same kind of thuggishness as El Chapo, it just manifests itself differently,” Cogan said, referring to convicted drug lord Joaquín Guzmán Loera.

Before his sentence was handed down, García Luna accused the Mexican government and criminals of making false allegations against him.

“I have not committed any of these crimes,” he said. “I am not the person that the criminals point to.”

Former president Andrés Manuel López Obrador claimed that the arrest and conviction of García Luna was evidence that Mexico was a narco-state when Calderón was in office.

AMLO has faced similar claims himself.

Three media organizations reported in January that López Obrador’s 2006 presidential campaign received millions of dollars in drug money, an accusation he denied. The New York Times subsequently published allegations that people close to the former president, including his sons, received drug money after he took office in late 2018.

López Obrador’s predecessor, Enrique Peña Nieto, denied an allegation made at El Chapo’s 2019 trial that he received a $100 million bribe from the Sinaloa Cartel.

The Los Angeles Times reported that “the recent arrest of Ismael ‘El Mayo’ Zambada, a longtime partner of El Chapo known for high-level political connections, has fueled speculation in Mexico that U.S. authorities could be building cases against other top officials or politicians.”

With reports from Reforma and Reuters 

Tourism to Nuevo León shoots up 250%

By
MND Staff
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Nuevo León is an industrial state that previously put very little emphasis on tourism.
Governor of Nuevo León Samuel García created the state’s first-ever Tourism Ministry to boost the industry in 2021. (Shutterstock)

Tourism in the northern state of Nuevo León has gone from 4.3 million visitors in 2021 to 15 million in 2024, according to the Nuevo León Tourism Minister Mari Carmen Martínez Villarreal. These figures represent a nearly 250% increase in just three years.  

“We have worked tirelessly for the past three years to position Nuevo León in the world through strategic actions and the implementation of key projects,” Martínez said at a press conference on Tuesday. “Our vision has been clear: to turn the state of Nuevo León into a benchmark for national and international tourism.” 

Nuevo León is an industrial state that previously put very little emphasis on tourism. Governor of Nuevo León Samuel García created the state’s first-ever Tourism Ministry to boost the industry in 2021. 

Since its creation, the tourism office has worked toward promoting the state’s parks, Pueblos Mágicos (Magical Towns) and culinary heritage. Last year, the state government recognized carne asada, cabrito and machaca (beef dishes) as intangible cultural heritage of Nuevo León. 

Pasaporte Nuevo León: The new app for NL tourists

During her speech, Martínez highlighted that under the current administration, the state has forged strategic alliances with the digital platforms Airbnb and Didi, to offer travelers better mobility and accommodation deals in the region. Her ministry also created the app “Pasaporte Nuevo León” (Passport Nuevo León) to help travelers discover experiences and tourist destinations within the state. 

Other initiatives include positioning Nuevo León as a strategic international travel hub, connecting it with Latin America through flights from Monterrey to Bogotá, with Asia through Tokyo and Seoul and with Europe through Madrid. 

View of Cerro de la Bufa, one of the icons of Monterrey, capital of the northern state of Nuevo León.
View of Cerro de la Bufa, one of the icons of Monterrey, capital of the northern state of Nuevo León. (Yoplita/Wikimedia Commons)

“Throughout Nuevo León, we are promoting tourism that respects the environment, promotes economic development and puts our state on the global map of destinations of excellence,” Martínez said. 

Finally, Martínez noted that events such as congresses, conventions and exhibitions held in Nuevo León have seen exponential growth in the last three years, going from 57 in 2021, to 117 in 2022, 150 in 2023 and just over 160 in 2024.

“The 2022-2027 state development plan focuses on consolidating tourism as one of the main drivers of economic growth for Nuevo León,” Martínez stressed. 

Nuevo León expects 500,000 for FIFA World Cup 2026

Martínez said Nuevo León is ready to welcome tourists who visit the state for the 2026 FIFA World Cup, under the slogan, “We are ready.” The state expects over half a million visitors to the tournament, which will be jointly hosted by the United States, Canada and Mexico.

To “get ready,” the state will provide English lessons to workers in the tourism industry, including waiters, taxi drivers and first-contact personnel. In addition, the state is working to improve coordination with airlines, create green pedestrian corridors, build new shopping malls and hotels and expand the Monterrey International Airport. 

Martínez said they forecast full hotel occupancy during the upcoming FIFA World Cup. 

With reports from Telediario, and El Financiero

El Tri beats USMNT 2-0 for the first time in 5 years

By
MND Staff
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0
Mexican player disputes a ball with the American opponent.
Mexico beat the US 2-0 in a Concacaf friendly match held in Guadalajara on Tuesday. (Fernando Carranza García/Cuartoscuro)

Raúl Jiménez recorded a goal and added an assist to lead Mexico to a 2-0 win over the United States Men’s National Team (USMNT) in an international soccer friendly at Guadalajara’s Estadio Akron on Tuesday night.

The victory was Mexico’s first over Team USA in more than five years and ended a seven-match unbeaten streak (5-2-0) for the Americans.

Jiménez, a Fulham forward, fired home a free kick from 24 meters to put El Tri, as Mexico’s men’s team is known, ahead in minute 22. It was the 34th goal in a national team jersey for the 33-year-old forward, lifting him into fifth place on Mexico’s all-time scoring list.

Playing with the advantage, Mexico pressured the U.S. team in midfield, surrounding lone forward Josh Sargent and keeping Mauricio Pochettino’s men from generating any threats.

Less than four minutes into the second half, El Tri struck again with Jiménez playing a key role.

Stuck near the sideline in his own end, midfielder Luis Romo found Orbelín Pineda on the other side of midfield with a lovely ball. Pineda trapped the pass, spun and quickly volleyed a diagonal lead pass to Jiménez flashing free down the right channel. 

Andrés Guardado says goodbye to the Mexican National Team, this in a friendly match between the Mexico vs. United States teams.
Long-time captain Andrés Guardado said goodbye to the Mexican National Team during Tuesday’s match against the United States. (Fernando Carranza García/Cuartoscuro)

The former América star dribbled into the box, skidding to a halt as defender Tim Ream challenged him and tugged him off the ball. Jiménez recovered, chased Ream and executed a neat sliding scissors tackle, sending the ball to teammate César Huerta near the penalty spot. Huerta coolly sidestepped Miles Robinson and slotted home past sprawling U.S. keeper Matt Turner to make it 2-0.

The two-goal deficit failed to spark a reaction from a beleaguered Team USA playing without seven starters. The Americans didn’t get their first shot on goal until minute 79 and their first shot of any kind — a muffed volley attempt by left-back Kristoffer Lund — came only 15 minutes earlier.

The game served as a tribute match for long-time captain Andrés Guardado who announced his retirement from El Tri. Guardado, 38, started and played 19 minutes before coming off to a standing ovation from the 43,537 fans in attendance, getting hugs from teammates and handshakes from some U.S. players. 

Being a friendly match, however, the loss does little to alter Team USA’s claim to being the top club in the Concacaf region.

Players from both sides now return to club duty for four weeks before the next international window during which time the games will be for real. 

Mexico will face Honduras twice (once at home and once on the road) in a Concacaf Nations League quarterfinal series, while the U.S. team is matched up against Jamaica in the same tournament.

The game served as a tribute match for long-time captain Andrés Guardado who announced his retirement from El Tri. Guardado, 38, started and played 19 minutes before coming off to a standing ovation from the 43,537 fans in attendance, getting hugs from teammates and handshakes from some U.S. players. 

With reports from CNN, Our Esquina, The Washington Post, ESPN and Reuters

 

Peso depreciates against US dollar for third straight day

By
MND Staff
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2
Different Mexican currency bills sitting in a chaotic pile as if thrown on a table
The peso has depreciated by more than 18% since its strongest position this year. (Marco Antonio Casique/Unsplash)

The Mexican peso continued to depreciate against the US dollar on Wednesday morning, losing ground for a third consecutive day to reach an exchange rate of almost 20 pesos to the greenback.

At 5 p.m. Mexico City time, one dollar was trading at 19.91 pesos, according to Bloomberg.

Donald Trump sitting as a guest onstage at an Economic Club of Chicago interview event in October 2024
One factor affecting the peso’s strength is repeated threats by presidential candidate Donald Trump, who has said he he would place extremely high tariffs on Chinese vehicles made in Mexico. (X)

The peso closed at 19.69 to the dollar on Tuesday, according to the Bank of Mexico.

Donald Trump’s tariff threats, a general strengthening of the dollar and a lower growth forecast for the Mexican economy from the International Monetary Fund are among the reasons why the peso has depreciated this week after closing at around 19.30 to the greenback last Friday.

In an interview at the Economic Club of Chicago on Tuesday, former president Trump  repeated his threat to impose hefty tariffs on vehicles imported to the United States from Mexico if he wins the Nov. 5 presidential election in the U.S.

He even cited a figure of 2,000%, although in subsequent remarks he only went as high as 300%.

“I’m going to put the highest tariff in history, meaning I’m going to stop them from ever selling a car into the United States,” said the Republican Party presidential candidate, who also asserted that “the most beautiful word in the dictionary is tariff.”

“… China is building massive auto plants in Mexico. And they’re going to build them, and they’re going to take those cars and sell them into the United States,” he said.

Cashier in Mexico City
The peso’s strongest position in 2024 was in April, when it reached 16.30 pesos to the US dollar, at a time when the consumer price index was also showing downward movement. (Wikimedia Commons)

Foreign exchange news website FX Street reported that the peso “depreciated over 1.60% against the US dollar on Tuesday after Donald Trump threatened to whack prohibitory tariffs on Mexican-made autos entering the US market.”

FX Street reported that the peso also “depreciated in early trading on Wednesday as the US dollar strengthened amid a mixed market mood with falling U.S. Treasury yields.”

The peso has depreciated significantly since the comprehensive victory of President Claudia Sheinbaum and the ruling Morena party at Mexico’s June 2 elections.

A major factor in the currency’s decline in recent months has been concern over the government’s judicial reform, which was approved by a Morena-dominated Congress in September and signed into law by former president Andrés Manuel López Obrador just before he left office.

Since the peso reached its strongest position this year — 16.30 to the dollar in April — the Mexican currency has depreciated by more than 18%.

Last month it depreciated to above 20 to the dollar for the first time since October 2022.

With reports from El Economista, Aristegui Noticias and FX Street 

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