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Mexico and US sign agreement to end Tijuana sewage crisis

By
MND Staff
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Alicia Bárcena and Zeldin hold up copies of a signed agreement to fund sewage treatment for the Tijuana River
Environment Minister Alicia Bárcena and U.S. Environmental Protection Agency director Lee Zeldin signed the deal Thursday in Mexico City. (Lee Zeldin/X)

Mexico and the United States reached an agreement on Thursday that aims to permanently fix a long-running environmental problem in which Mexican sewage flows into the Pacific Ocean off the coast of southern California after crossing the border via the Tijuana River.

Mexico’s Environment Minister Alicia Bárcena and U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin signed a memorandum of understanding (MOU) in Mexico City that seeks to address “the sanitation and environmental crisis in the Tijuana–San Diego Region.”

Imperial Beach in San Diego, where the Tijuana River meets the Pacific Ocean, has been repeatedly closed in past years for unsafe levels of sewage in the water.
Imperial Beach in San Diego, where the Tijuana River meets the Pacific Ocean, has been repeatedly closed in past years due to unsafe levels of sewage in the water. (File photo)

The MOU states that there is a shared desire to “coordinate cross-border solutions that permanently stop untreated wastewater from polluting coastal communities, harming public health, and damaging the environment on both sides of the border.”

The document outlines commitments of both Mexico and the United States that are aimed at achieving those objectives. One of Mexico’s commitments is to allocate US $93 million in 2026 and 2027 to “facilitate completion” of a number of projects to improve the Tijuana sewage system by December 31, 2027, “or sooner.”

The EPA said in a statement that the MOU “achieves the three top Trump Administration priorities and milestones critical to ensuring a 100% solution” to the sewage crisis in the Tijuana-San Diego area.

The agency noted that Mexico will allocate $93 million to sewage system projects and that the timeline for the completion of those projects has been reduced by up to four years in some cases. It also said that “several necessary Mexico side projects have been added to account for future population growth in Tijuana and operation and maintenance costs.”

Zeldin declared that “the Trump Administration is proud to deliver this massive environmental and national security win for Americans in the San Diego area who have been living with this disgusting raw sewage flowing into their communities for far too long.”

He emphasized the need for speed in the completion of projects to solve the sewage crisis, telling reporters “that if any speed changes, that speed will have to be a speed to go faster.”

Earlier this year, Zeldin accused Mexico of being too slow to complete projects it has committed to carrying out in Tijuana, where the population and industry have grown significantly in recent decades and wastewater treatment plants and other sewage infrastructure have become ineffective.

The signing of the MOU came three months after the EPA chief said that Mexico must act to stop the massive flow of sewage and toxic chemicals from the Tijuana River into the Pacific Ocean. 

The sewage has contaminated the coastline of southern California for years, and sickened U.S. Navy seals, Border Patrol agents, beach users and others.

Bárcena said on Thursday that Mexico and the United States are committed to solving the binational sewage problem “once and for all.”

She highlighted that the MOU is “the first binational agreement … between Mexico and the United States under the administration of President Donald Trump and President Claudia Sheinbaum.”

“There is a great commitment on the part of both countries to strengthen cooperation and this is what we’re demonstrating today,” Bárcena said.

The agreement comes at a time when there are range of tensions in the Mexico-United States relationship, including ones related to trade and drug trafficking.

The memorandum in detail 

The MOU states that Mexico “intends to immediately seek internal funding” to initiate construction of two projects in 2025.

One US $13.3-million project will divert 10 million gallons per day of treated effluent to the Rodríguez Dam, located upstream on the Tijuana River.

Another $8.4-million project will rehabilitate the Parallel Gravity Line, a major wastewater pipeline.

Those two projects will be completed by the end of 2025, the EPA said.

The $93 million in funding to be used in 2026 and 2027 is to rehabilitate various sewers in the Tijuana sewage system and to carry out upgrades to the Arturo Herrera and La Morita wastewater treatment plants, among other projects. That money is so-called “Minute 328 funds,” part of a financial commitment Mexico pledged to make in accordance with a 2022 agreement.

Bárcena said that Mexico is also committed to doubling the capacity of the San Antonio de los Buenos wastewater treatment plant. The Environment Ministry said in a statement that it is “exploring financing alternatives” to achieve that goal, including the possibility of accessing “support” from the EPA “through existing mechanisms at the North American Development Bank.”

The San Antonio de los Buenos plant “had been spewing at least 23 million gallons of sewage per day (1,000 liters per second) into the Pacific Ocean” before recent repairs, Reuters reported.

Even now, “millions of gallons of treated and untreated sewage from Tijuana’s overburdened [sewage] system makes its way daily into the Tijuana River and reaches the ocean in the San Diego suburb of Imperial Beach,” the news agency said.

Among the United States’ commitments, as detailed in the MOU, is to release EPA Border Water Infrastructure Program funding to complete the rehabilitation of Pump Station 1 in San Diego as well as Tijuana River collection pipes. Pump Station 1 treats sewage pumped in from Tijuana.

The United States also committed to “expand treatment capacity” at the South Bay International Wastewater Treatment Plant in San Diego “from 25 to 50 million gallons per day (‘MGD’) by December 2027, with an interim expansion to 35 MGD by August 2025.”

That plant also treats sewage from Tijuana.

The MOU also states that Mexico and the United States “intend to enter into a new Minute by December 31, 2025, or sooner,” that will contain a number of actions to be “executed immediately through existing or new binational workgroups led by the two Sections of IBWC” — the International Boundary and Water Commission.

Among the 13 actions are to:

  • Initiate engineering and financial studies to assess the feasibility of installing an ocean outfall at the San Antonio de los Buenos plant in Tijuana.
  • Assess the technical and financial feasibility of expanding treatment capacity of the San Antonio de los Buenos plant from 18.26 to 43.37 million gallons per day.
  • Develop a routine schedule and cost-sharing formula for cleaning and sediment dredging operations in the Tijuana River.
  • Develop a Tijuana water infrastructure master plan to ensure that sufficient water infrastructure is planned and constructed commensurate with anticipated population growth.

The MOU states that the 13 actions “are deemed necessary to ensure a comprehensive and durable solution to address transboundary wastewater management issues, human health concerns, and environmental conditions in the Tijuana River watershed.”

On Friday morning, President Sheinbaum described the MOU as a “very important agreement” and highlighted that the United States is committing $600 million to projects in the San Diego area.

“It’s a comprehensive bilateral agreement,” she said.

With reports from Reuters, NBC San Diego and La Jornada

Nayarit expects a million visitors this summer, bringing a 5-billion-peso boost to its economy

By
MND Staff
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golf cart, people and buidlings of a Nayarit town
At once a Pueblo Mágico and a surfing mecca, Sayulita typifies Nayarit's attractiveness to tourists, foreign and domestic. (Maximus Meadowcroft/Unsplash)

Summer vacation has begun and Nayarit officials are projecting a five billion-peso windfall from the one million tourists expected to visit the state’s beaches and pueblos mágicos.

State and federal officials launched Operation Summer Vacation 2025 on July 4, a program aimed at providing security to tourists and Nayarit residents. The strategy involves state and federal security, health, civil protection and tourism agencies.

aerial view of beach in Nayarit
Plenty of seaside micro-destinations have earned the state’s coast the title of Riviera Nayarit. (Michele Feola/Unsplash)

Hotel occupancy in the state’s coastal areas is projected to reach 88%, contributing mightily to the 5 billion pesos (US $270 million) expected to enter the state this summer.

While providing an update this week, state Tourism Minister Juan Enrique Suárez del Real spoke of the growth in domestic and international tourists and visitors to Nayarit in recent years. 

He said that while roughly two-thirds of visitors to Nayarit arrive by land, more than 60% of passengers arriving at the Puerto Vallarta International Airport in neighboring Jalisco visit destinations in Nayarit. This translates to approximately four million tourists arriving by air each year, he said.

Suárez del Real said Governor Miguel Ángel Navarro has prioritized air connectivity with new international routes arriving at the Tepic International Airport (TPQ) from the U.S. and a direct flight from Canada due to launch in December. The airport in Tepic, the state capital, officially became an international airport in 2009, but a July 16 flight from Los Angeles was TPQ’s first-ever international arrival.

Navarro oversaw a 4.1-billion-peso (US $221 million) renovation project to expand TPQ’s runways and build a new terminal and a new control tower that he said further strengthens the state’s position as a key destination for international tourism.

The tourism minister called on all state residents “to embrace tourism as a matter of shared responsibility and commitment.” He said that beyond entertainment, tourism means “meeting all the needs of those who visit Nayarit with quality and efficiency.”

With reports from El Universal and El Economista

Surprise drop in inflation likely to trigger further interest rate cuts, experts predict

By
MND Staff
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A man looks at produce in a Mexican market
Falling prices on agricultural products brought inflation down to nearly 3.5% in the first half of July. (Daniel Augusto/Cuartoscuro)

Mexico’s headline inflation slowed for the third consecutive fortnight, according to the national statistics agency INEGI, falling back within the central bank’s target range.

Inflation declined in the first half of July, marked by lower costs for various agricultural products, such as lemons and avocados, giving rise to expectations that the central bank (Banxico) will continue to cut interest rates.

Mexico's central bank (Banxico) headquarters, an ornate beige building
Headline inflation declined more than expected in early July, bringing it back within the central bank’s target range. (Shutterstock)

Annualized inflation surprised to the downside in the first half of July, slowing from 4.13% to 3.55%, below the market consensus of 3.61%. Consumer prices rose 0.15% compared to the previous two weeks, also below expectations of a 0.27% increase.

President Claudia Sheinbaum celebrated the news, saying during her Thursday morning press conference that the slowdown in inflation “indicates that [Banxico] has room to keep cutting interest rates.”

Citing INEGI data, Sheinbaum said the rise in inflation in previous months was primarily due to the increase in the prices of beef, pork, and chicken, whose costs have begun to normalize.

Among the products with the highest price increases during the first two weeks of July were nopales, up 14.44%; air transport, up 11.25% and lettuce and cabbage, up 8.71%.

In the other column, grapes showed an 11.96% decrease in price; papayas fell 5.86% and lemons fell 5.73%.

Banxico, which targets an inflation rate of 3% plus or minus one percentage point, lowered its benchmark interest rate by 50 basis points in June — its fourth straight cut of that magnitude. This reduced the policy rate in Latin America’s second-largest economy to 8.0%, the lowest since August 2022.

Brokerage Monex said the data surprised the market as inflation reached its lowest level during the first fortnight of July in a decade. Still, core inflation continues to present challenges.

The closely watched core price index, which measures inflation excluding volatile items like food and energy prices, climbed 0.15% in early July, compared with 0.22% a month earlier.

The year-to-year core component came in at 4.25%, easing from 4.28% and below expectations (4.31%). Within the core index, goods “registered upward pressure,” according to a Scotiabank report, “rising from 3.97% to 4.01%, while services decelerated from 4.63% to 4.49%.”

At the same time, the non-core rate declined from 3.43% to 1.24%, fueled by a sharp decline in fruit and vegetable prices (down 12.24%). This abrupt drop offset a 10.70% increase in livestock products.

In its statement from the June 27 meeting, Banxico said it expects to slow the pace of interest rate cuts. Monex analysts concurred, writing in a report that “Given the stubbornness of core inflation, we expect Banxico to reduce the scale of its cuts.”

Monex and Scotiabank project that the central bank will vote for a 25 basis point rate cut at its Aug. 7 meeting, lowering the benchmark interest rate to 7.75%.

With reports from El Economista and Reuters

Mexico doing ‘everything’ to avoid 30% US tariffs: Thursday’s mañanera recapped

By
MND Staff
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Sheinbaum July 24 2025
Sheinbaum said she would seek to speak to Trump about the proposed 30% tariff "if it's necessary." (Daniel Augusto/Cuartoscuro)

At her Thursday morning press conference, President Claudia Sheinbaum spoke about her government’s efforts to stave off new U.S. tariffs that are due to take effect next week.

She also spoke about two significant reductions: one in the amount of fentanyl seized by U.S. authorities at the Mexico-U.S. border and another in the prevailing inflation rate in Mexico.

Here is a recap of the president’s July 24 mañanera.

Mexico doing ‘everything’ it can to stop 30% US tariffs from taking effect  

Asked about the United States’ proposed 30% tariff on imports from Mexico that is scheduled to take effect on Aug. 1, Sheinbaum said that her government is doing “everything” it can to stop the new duty from entering into force.

“There is a team working in the United States with the [U.S.] commerce secretary and the treasury secretary,” she said.

“We made a series of proposals that have to do with Plan México and also reducing the trade deficit [with the United States], which is one of the concerns of President Trump,” Sheinbaum said.

“The trade deficit can be reduced through different mechanisms that don’t affect the economy of Mexico. So we’ve been making a series of proposals and we’ll present them here [at a later time], hoping that we reach an agreement,” she said.

US announces 30% tariff on Mexican goods as bilateral talks continue

United States President Donald Trump informed Sheinbaum in a July 11 letter that “starting August 1, 2025, we will charge Mexico a Tariff of 30% on Mexican products sent into the United States, separate from all Sectoral Tariffs,” which currently apply to steel, aluminum, vehicles and auto parts.

In the letter, Trump noted that the United States “imposed Tariffs on Mexico” earlier this year “to deal with our Nation’s Fentanyl crisis.”

“… Mexico has been helping me secure the border, BUT, what Mexico has done is, is not enough,” he wrote.

On Thursday, Sheinbaum said she would seek to speak to Trump about the proposed 30% tariff “if it’s necessary.”

“… We’re going to see whether the teams can find an agreement. … We’re confident we can reach a good agreement,” she said.

Sheinbaum touts 50% decline in US fentanyl seizures 

Sheinbaum told reporters that the quantity of fentanyl seized by U.S. authorities at the Mexico-U.S. border has declined 50% since she took office last October.

U.S. Customs and Border Protection data shows that 4,367 pounds (1,981 kg) of fentanyl were seized at the Mexico-U.S. border in the first six months of 2025, a 54.7% decrease compared to the same period of last year.

Sheinbaum asserted that the decline in fentanyl seizures at the border — which can be used as a rough proxy to estimate the amount of fentanyl being smuggled into the United States from Mexico — is evidence that more of the synthetic opioid is being seized in Mexico.

That confiscated fentanyl — produced in Mexico by criminal organizations with precursor chemicals imported from China — doesn’t reach the United States, she stressed.

Security Minister Omar García Harfuch reported on Tuesday that around 1.5 tonnes of fentanyl, “and more than 3.5 million fentanyl pills,” have been seized in Mexico since October.

On Thursday, Sheinbaum attributed fentanyl seizures in Mexico during her administration to “the entire security strategy,” which includes a greater emphasis on the use of intelligence and investigation to combat crime.

She stressed that authorities are also cracking down on methamphetamine, which is also produced by criminal groups in clandestine labs.

García Harfuch said on Tuesday that authorities have dismantled 1,193 clandestine drug labs since the government took office in October.

Sheinbaum highlighted that figure on Thursday, and noted that the estimated financial impact on organized crime groups due to drug confiscations, the dismantling of labs and the arrest of suspected criminals during her administration is 43 billion pesos (US $2.3 billion).

“All of this is part of the work we’re doing, and, as we always say, we’re also seeking that, on the other side in the United States, they do their part” to combat the distribution of fentanyl and other drugs, she said.

Sheinbaum highlights ‘significant reduction’ in inflation

A reporter noted that Mexico’s annual headline inflation rate, as reported by national statistics agency INEGI, declined to 3.55% in the first half of July. That rate is within the Bank of Mexico’s tolerated range of 2-4%.

Sheinbaum first said that beef, pork and chicken prices are “returning to their [normal] price” and helping to ease inflation.

The rate in the first half of the month represents a “significant reduction” in headline inflation, she said.

“It went from 4.13% to 3.55%,” Sheinbaum noted, referring in the first instance to the annual headline rate in the second half of June.

She said that the new inflation data gives the Bank of Mexico the “margin” required to continue lowering its key interest rate.

A continuation of the central bank’s easing cycle “will help us … increase investment” in Mexico, Sheinbaum said.

The Bank of Mexico has cut its key interest rate by 50 basis points after each of its board’s four monetary policy meetings this year. The rate is currently set at 8.0%, its lowest level in nearly three years.

The central bank’s next monetary policy meeting will take place on Aug. 7.

By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)

Authorities bust extortion ring controlling farming, construction and even package delivery

By
MND Staff
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bricks in a warehouse
The suspects hoarded goods such as building materials and forced their victims to buy them at exorbitant prices. (X)

Federal and México state authorities have seized 52 properties and arrested eight people in a sweeping operation targeting an extortion network allegedly linked to the La Familia Michoacana cartel, officials said Tuesday.

Dubbed “Operation Liberation” — “Operación Liberación” in Spanish — the coordinated raid spanned 14 municipalities in the state, including Valle de Bravo, Malinalco, Ixtapan de la Sal and Texcaltitlán.

councilwoman with arrest information
Among those arrested in Tuesday’s sweep was an Ixtapan de la Sal councilwoman, identified as Yareli “N,” detained “in compliance with an apprehension order, for the probable participation in the crime of express kidnapping for the purposes of extortion.” (México state government)

Federal and state forces deployed 2,866 personnel and 698 vehicles while executing simultaneous searches of businesses used for hoarding and selling construction materials, meat, animals and other goods at vastly inflated prices.

La Familia Michoacana, sometimes called La Nueva Familia Michoacana, is one of six cartels the United States government designated as a foreign terrorist organization (FTO) in February.

Mexican Security Minister Omar García Harfuch — who survived a 2020 assassination attempt reportedly orchestrated by the Jalisco New Generation Cartel when he served as police chief of Mexico City — said the crackdown was urgently needed “to protect the local economy and the peace of mind of thousands of families.”

In a press release from the Ministry of Security and Citizen Protection, García Harfuch added that it was essential “to halt these practices that sought to control economic sectors, from food supplies to construction materials … [to] dismantle their operations, seize assets linked to crime and regain control of the territory for the benefit of the public.”

Among those arrested was Yareli “N,” a councilwoman from Ixtapan de la Sal, about 60 kilometers south from Toluca, the state’s capital, and leaders of the cartel’s management structure.

The perpetrators allegedly forced merchants and residents to buy products exclusively from cartel-controlled stores or face violence. Anyone purchasing from outside sellers was subject to robbery and threats, authorities said.

“Residents are unable to turn to other establishments,” said State Prosecutor José Luis Cervantes Martínez.

Investigators said the group manipulated prices through fake labor unions and front businesses, as well as through mines, butcher shops, egg stores, and chicken and pig farms.

In one case, according to authorities, a ton of rebar was sold for 23,950 pesos (US $1,292) — 33.5% above the market rate in Mexico — while a kilogram of whole chicken fetched 115 pesos, 53% more than normal.

In Texcaltitlán, for example, customers paid a mandatory five-peso fee per kilo to weigh cattle, while in Tejupilco, the group monopolized package delivery, charging “illegal fees” and sometimes confiscating goods.

Seized assets include 4,174 poultry, 17,657 kilograms of feed, 3.9 tons of meat, 5,000 bags of cement, 128 vehicles and 18 exotic animals — including pumas, peacocks, swans and raccoons.

The 52 properties seized included six mines, 24 warehouses, a slaughterhouse, a ranch, a hotel and an unnamed number of butcher shops, chicken farms and lumberyards.

Officials pledged many materials would be distributed to benefit affected communities, while also saying that the operation is ongoing and will continue until all responsible parties are brought to justice.

With reports from Animal Politico, Infobae and El Financiero

Spanish energy giant Iberdrola to sell US $5B in assets, exit Mexico

By
MND Staff
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Iberdrola tower
The power company is selling off its Mexican assets, worth US $4.7 billion, as it seeks to exit Mexico. (Iberdrola)

Iberdrola, Europe’s largest power company, has hired investment bank Barclays to sell all 15 of its renewable energy plants in Mexico in an effort to exit the country, the Spanish news website El Confidencial reported Wednesday.

Citing anonymous sources close to the deal, El Confidencial said Iberdrola is looking to sell due to concern about Mexico’s financial and legal stability.

Iberdrola wind farm
Six wind farms are among the assets that Iberdrola is selling through the investment bank Barclays. (Iberdrola)

The assets on offer — six wind farms, three solar photovoltaic plants and six cogeneration or combined cycle units — are valued at US $4.7 billion.

In 2023, Iberdrola agreed to sell 55% of its Mexican assets to the Mexican government for US $6 billion. Then-president Andrés Manuel López Obrador described the acquisition as a “new nationalization” of the electricity market.

Before that sell-off, the Spanish firm was the largest private generator in Mexico, with more than 11,000 MW installed, providing more than 15% of the nation’s electricity.

By then, Iberdrola had been a frequent target of López Obrador, who sought to give state-owned electricity utility CFE majority control over the local power market. 

In 2022, the government disconnected an Iberdrola power plant from the national grid. Two years earlier, Iberdrola had threatened to halt further investment, decrying a lack of clarity in government energy policy.

After the 2023 transaction, Iberdrola insisted it would remain in Mexico, but El Universal columnist Mario Maldonado reported that the company lacked confidence in President Claudia Sheinbaum’s energy policies, which continue to prioritize the CFE, prompting the decision to pull out of Mexico.

Although Iberdrola declined to comment on its agreement with Barclays and its pending departure from Mexico, it did announce a capital increase of five billion euros (US $5.87 billion) to finance investments in electricity networks in the United Kingdom and the United States.

Over the next six years, Iberdrola plans to invest some 55 billion euros (US $64.7 billion) in electricity grids, more than 80% of which will be invested in the U.K. and the U.S. 

Iberdrola president Ignacio Sánchez Galán described the plan as “an unprecedented investment opportunity,” according to the newspaper Reforma.

With reports from El Confidencial, Reforma, El Economista, El Universal and Reuters

After fatal motorcycle accident, CDMX threatens action against ride-hailing apps

By
MND Staff
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motorcycle wheel at scene of accident
The motorcycle driver was reportedly employed by the Chinese ride-hailing app DiDi, which is Uber’s main competition in Mexico City. (Rogelio Morales/Cuartoscuro)

Companies offering ride-hailing services on motorcycles could face legal action, Mexico City authorities announced shortly after a crash resulted in the death of a passenger Wednesday morning. 

The fatal accident occurred on the Paseo de la Reforma, a principal thoroughfare in downtown Mexico City, when the driver of the motorcycle apparently lost control of his vehicle and crashed into a tree in the median. 

accident scene on Reforma
The fatal accident took place on Paseo de la Reforma on Wednesday morning, temporarily closing the thoroughfare to traffic. (Rogelio Morales/Cuartoscuro)

The city’s Mobility Ministry (Semovi) released a statement on social media in response to the fatal accident, saying the motorcycle driver had been apprehended.

Critics immediately railed against the authorities for failing to act sooner, pointing out that — as Semovi affirmed in its statement — motorcycle ride-sharing is prohibited by law.

“These motorcycle applications have been around for months and you are just now going to take action,” responded an X user named Sury. 

Another respondent complained that city authorities frequently suspend and sanction bus companies that violate laws, but never take action against ride-hailing companies.

The newspaper La Jornada reported that the motorcycle driver was employed by the Chinese ride-hailing app DiDi, which is Uber’s main competition in Mexico City.

Although Semovi insisted in its statement that it is “committed to making sure that public transportation options are safe and reliable,” motorcycle rides have been openly available on ride-hailing apps in Mexico City for more than a year.

DiDi's website encourages motorcycle owners to "generate extra income with one of the lowest service fees on the market." In Mexico City, DiDi Moto costs half of what DiDi Express (a car) costs.
DiDi’s website encourages motorcycle owners to “generate extra income with one of the lowest service fees on the market.” In Mexico City, a ride with DiDi Moto costs half of what a DiDi Express ride (a car) costs. (DiDi México)

The magazine Proceso pointed out that city authorities were blocked from taking legal action when a federal judge ruled earlier this month that the services were private, not public.

Semovi said it is difficult to determine if a motorcycle is offering ride-sharing services since they don’t display company logos.

Colombian firm Picap was the first company to offer motorcycle passenger services in Mexico City, according to the newspaper La Prensa. The newspaper Milenio reported that it had been operating in the capital since before September 2024.

In June, marketing magazine Merca 2.0 reported that Uber Moto was operating in 25 Mexican cities, including the capital, where demand had increased eight-fold since Uber began offering the motorcycle service.

Last year, Uber spokesman Esteban Illades promoted Uber Moto as a system that “offers more reliable and accessible solutions to all its residents.”

None of the motorcycle ride-sharing companies have issued a statement since the accident.

With reports from La Jornada and El Universal

Mexico and Brazil eye expanded trade deal ahead of August meeting

By
MND Staff
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Sheinbaum and Lula
Sheinbaum and Lula have met in person on several occasions since the former took office last October. Here they are in Honduras during the CELAC Summit in April. (Presidencia/Cuartoscuro)

Amid uncertainty in their trade relationships with the United States, Mexico and Brazil are seeking to enhance their commercial ties with each other.

President Claudia Sheinbaum spoke to her Brazilian counterpart, President Luiz Inácio Lula da Silva (Lula), on Wednesday ahead of a visit to Mexico by a Brazilian government and business delegation next month.

“We followed up on the agreement to welcome in Mexico authorities and business people from Brazil, with the aim of deepening our collaboration on various issues,” Sheinbaum wrote on social media.

In his own social media message, Lula said that he emphasized to Sheinbaum “the importance of deepening economic and trade relations between our countries, especially in light of the current uncertainty.”

United States President Donald Trump recently informed the Mexican and Brazilian leaders of his intention to impose 30% tariffs on imports from Mexico and 50% tariffs on imports from Brazil starting Aug. 1.

Both Mexico and Brazil are aiming to reach agreements to stop those tariffs from taking effect, but there is no certainty they will achieve their goals.

In his social media post, Lula noted that he and Sheinbaum agreed that a delegation led by Brazilian Vice President Geraldo Alckmin would visit Mexico on Aug. 27 and 28.

He also said that he and Sheinbaum “discussed the expansion of the Brazil-Mexico trade agreement, highlighting the potential of the pharmaceutical, agricultural, ethanol, biodiesel, aerospace, innovation and education sectors as strategic areas in our bilateral relationship.”

Negotiations aimed at the expansion of the 23-year-old bilateral trade pact are expected to commence during next month’s meetings in Mexico.

Sheinbaum and Lula have met in person on several occasions since the former took office last October. The Mexican president attended the G20 Leaders’ Summit hosted by Lula in Rio de Janeiro last November, and held a bilateral meeting with the Brazilian leader on the sidelines of the CELAC Summit in Tegucigalpa, Honduras, in April. Sheinbaum also spoke to Lula at the G7 Summit in Canada last month.

After the Tegucigalpa meeting, Lula said that he and Sheinbaum “decided to further strengthen relations between our two countries by promoting periodic meetings between our governments and the productive sectors of industry in Brazil and Mexico.”

Sheinbaum called for “greater regional economic integration” in an address to the CELAC Summit, and has advocated a broadening of the USMCA pact to include more Western Hemisphere countries.

Her conversation with Lula on Thursday came just after Brazil adopted a new protocol that allows Mexico to export avocados to Latin America’s most populous country and largest economy.

The trade relationship between Mexico and Brazil 

According to Mexico’s Economy Ministry, two-way trade between Mexico and Brazil amounted to US $14.53 billion in 2024.

Mexico’s exports to Brazil were worth $4.23 billion, while imports from Brazil were worth $10.3 billion.

Mexico’s top export to Brazil was motor vehicle parts and accessories, accounting for 19.1% of all revenue earned from products shipped to the South American country.

Auto sector exports (parts, cars and trucks) accounted for just over 43% of Mexico’s total revenue from products sent to Brazil last year.

Mexico’s largest import from Brazil in 2024 was intermediate products of iron or non-alloy steel, accounting for 20.5% of the total outlay on Brazilian products.

Mexico’s second largest export from Brazil was cars followed by meat.

Brazil to import avocados from Mexico, unlocking a market of over 200 million

A Mexico-Brazil trade pact signed in 2002 “sets the exemption or the reduction of import fees for some 800 types of products,” Reuters reported last September when Mexican and Brazilian authorities began advocating for an updated and expanded agreement.

Marcelo Ebrard, economy minister since the beginning of the Sheinbaum administration, said at the time that “the growth of our relationship has already topped that agreement.”

“We need to update it,” he added.

Brazil ranked as the 10th largest economy in the world in 2024, while Mexico ranked 13th, according to the International Monetary Fund (IMF).

The two countries are the No. 1 and No. 2 economies in Latin America. Brazil’s nominal GDP in 2024 was US $2.17 trillion last year, according to the IMF, while Mexico’s GDP was $1.85 trillion.

With reports from El Universal and AFP

Mexican peso reaches strongest position since August 2024

By
MND Staff
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peso dollar
On Wednesday, the peso got a boost from increased market optimism following U.S. President Donald Trump's announcement that he had reached a trade deal with Japan. (Margarito Perez Retana/Cuartoscuro)

The Mexican peso appreciated against the US dollar for a fourth consecutive trading day on Wednesday to close at its strongest position in 2025.

The peso closed at 18.53 to the greenback on Wednesday, according to the Bank of Mexico (Banxico), an appreciation of around 0.6% compared to its closing position on Tuesday.

The last time the peso was stronger was in August 2024.

By the close of trading on Wednesday, the peso had appreciated around 1.2% compared to its closing position last Thursday.

In 2025, the currency has gained more than 11% against the greenback. On the first trading day of the year, Jan. 2, the peso closed at 20.62 to the dollar, according to Banxico.

On Thursday morning, the peso weakened slightly to trade at 18.56 to the dollar at 9 a.m. Mexico City time, according to Yahoo! Finance.

On Wednesday, the peso got a boost from increased market optimism following U.S. President Donald Trump’s announcement that he had reached a trade deal with Japan.

Gabriela Siller, director of economic analysis at Mexican bank Banco Base, said that the peso could appreciate further if Banxico pauses its rate-cutting cycle and signals a more restrictive monetary policy stance moving forward.

The central bank’s key interest rate is currently set at 8.0% after a 50-basis-point cut in late June, the fourth consecutive cut of that magnitude in 2025. Banxico’s governing board will hold its next monetary policy meeting on Aug. 7.

The peso generally benefits from a higher interest rate in Mexico relative to the United States Federal Reserve’s federal funds rate, which is currently set at a 4.25%-4.50% range.

Another factor that could affect the MXN-USD exchange rate in the near term is the outcome of ongoing trade negotiations between Mexico and the United States.

In a July 11 letter, Trump informed President Claudia Sheinbaum that on Aug. 1, he would impose a 30% tariff on “Mexican products sent into the United States, separate from all Sectoral Tariffs,” which currently apply to steel, aluminum and vehicles.

A deal between Mexico and the U.S. that stops the proposed 30% tariff from taking effect could give the peso an additional boost, and perhaps propel the currency to a new 2025 high.

With reports from El Economista 

Is Colonia Juárez the New Off Broadway?

By
James Monack and Marina Villasenor
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Move over New York, there's plenty of pizzaz around these parts, too. (Jimmy Monack)

“Little Shop of Horrors,” “Rent,” “Avenue Q” and “Hamilton”: All had their beginnings off-Broadway.  More importantly, off-Broadway — and don’t forget Off Off Broadway — is the playground in the United States for experimental theater and where, frankly, the cool people go to the theater.

Here in Mexico City, one can see “Lion King” and “Spamalot” and other hits from London and New York.  But here, the cool people go to the theater in Colonia Juárez.

David Olguín, Artistic Director and main Theater el Milagro and Gabriel Pascal , Artistic Director and scenographer, set designer, and lighting designer. (James Monack)

Conventional wisdom says that the hipster crown will soon be passed from Roma to La Juárez and the signs are clear that it will be even hipster-ier. Jackhammers, circuit saws and cement trucks are the soundtrack of this neighborhood as restaurants, speakeasies, photo studios and dance schools pop up on a weekly basis.  But the enduring force embedded in La Juárez is its rich history of independent theaters.

One of the best examples of this vibrant new atmosphere is located in the charming Bazar Fusión on Calle Londres which houses boutique clothiers, fine food and even a cigar shop.  Most importantly, Foro 37 brings comedy, magic and intimate productions to round out a perfect evening

Isabel Arce, General Director, who opened Foro 37 nine years ago, says “When we first opened the theater it was a very unknown neighborhood. It was like the backyard of Roma.” Yet, like many artistic hubs, La Juárez was simply cheaper and thus attracted artists of all kinds looking for inexpensive spaces to create. 

And as Roma becomes more known for restaurants, Juárez is becoming much more of a cultural core.  While fine dining is certainly available in Juárez, Foro 37 can add to an evening with a real feeling of connecting with an intimate performance.  It is, perhaps, what many people who enjoy the grand blockbusters like “Chicago” miss out on.  With the Foro 37’s seat capacity at 49, Arce’s vision of personal experience has been a great success, and she hopes for more.

From musicals to comedy and even a play inspired and written from the perspective of prison inmates, Isabel Arce will always be on the lookout for material that inspires.

On the other side of Avenida Insurgentes, closer to Zona Rosa, is the Teatro Varsovia, where directors Rodrigo González and Raúl Tamez bring a variety of acts to La Juárez.  Interestingly, the theater was built as part of a housing complex by the famed functionalist architect Mario Pani.  The idea was that a theater is just as important as plumbing or a working elevator.  Yet as time passed, so did architectural trends, and the building went on to be used for other purposes.  What this meant for González and Tamez was that they didn’t need to do much building or hunting for used theater seats; they only needed to put on excellent productions.

Raul Tamez, Artistic Director of Varsova and Theater and Rodrigo González, Artistic Director. (James Monack)

“This neighborhood has always been bohemian,” says Tamez, explaining the intellectual climate that became the center of the LGBTQ+ rights movement in Mexico.  “Also because of that, there were lots of cabaret and trans shows.” 

Teatro Varsovia, with its mixed audience of young and old, gay and straight, Chilango and gringo, produces a wide variety of shows beyond just plays.  They have all kinds of music from Baroque to rock and roll to comedy shows and musicals.  But when a play is staged here, Tamez explains, “It has to be raw and emotional.”  Productions at the Varsovia follow in the tradition of playwrights like David Mamet and Wendy Wasserstein, who utilize small settings with emotionally charged characters. 

For a great outing in La Juárez where one will be pleasantly surprised, Teatro Varsovia provides and opportunity for something new… or classic…or edgy…or heartwarming.  All are available.

Finally, there is the Teatro Milagro, perhaps the pluckiest of the theaters listed here.  Unlike Varsovia, getting this venue running had to retrofit an otherwise forgotten building the way many independent spaces need to.  But that is a tradition that goes back to the 1960s according to playwright David Olguín, who sits on the theater’s steering committee.   

“It was a slow process,” Olguín says, referring to the rebuilding after the devastating 1985 earthquake.  And inside the theater, one can see the reinforcements that have been installed to be within safety codes.  In a way, it helps support the idea that creative people will make use of any space with potential. 

For the last 17 years, Milagro has mounted productions as varied as “Waiting for Godot” or Lysistrata to modern dramas like Aldo Martínez Sandoval’s “La caducidad de la lavanda,” which is set in a morgue.  New plays often premier at the Milagro.  

There are many things that indicate that Colonia Juárez will be outshining Roma as the most fashionable and culturally cutting-edge part of the city, and a strong independent theater scene is vital for that success.  

 Watch out, Roma:  Juárez is biting at your heels.

Jimmy Monack is a teacher, photographer and award-winning writer.  He profiles interesting people all around the world as well as writing about and photographing rock concerts. He lives in Mexico City.  www.jimmymonack.com

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