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Will Pemex’s US $5.4B petrochemical bet put a dent in its debt?

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bags of fertilizer
The Mexican government is seeking to strengthen food security and reduce Mexico's dependence on imported fertilizers and petrochemicals. (Cuartoscuro)

The large investment in Mexico’s petrochemical and fertilizer industries announced by Pemex CEO Juan Carlos Carpio earlier this month won’t improve the state oil company’s financial situation, according to an energy expert who spoke with the news outlet El CEO.

At President Claudia Sheinbaum’s June 5 press conference, Carpio announced a 93-billion-peso (US $5.4 billion) public-private investment plan aimed at revitalizing Mexico’s petrochemical and fertilizer industries. Sixty-two per cent of the resources are slated to come from the government, with the remaining 38% to be invested by the private sector. With the investment plan, the government is seeking to strengthen food security and reduce Mexico’s dependence on imported fertilizers and petrochemicals.

Pemex CEO Carlos Carpio
Pemex CEO Juan Carlos Carpio said on June 5 that a significant part of the investment will go to upgrading existing petrochemical facilities and building new ones. According to Mexico Business News, the priority is the construction of an ammonia and urea plant in Poza Rica, Veracruz. (Saúl López/Presidencia)

Carpio said that the 93 billion pesos would be invested in various projects between 2026 and 2030. Mexico Business News reported that the centerpiece of the investment plan is a 25-billion-peso ammonia and urea plant in Poza Rica, Veracruz, that is expected to produce 708,000 tonnes of granulated urea annually.

“The Poza Rica facility, developed at the Escolín Petrochemical Complex, is being executed through a partnership between Pemex Industrial Transformation and Portuguese construction firm Mota-Engil, and has been under development since 2025,” Mexico Business News reported.

Significant amounts of money will also go to upgrading existing petrochemical facilities and building new ones, Carpio said on June 5.

He told Sheinbaum’s press conference that “the reactivation” of Mexico’s fertilizer and petrochemical sectors will provide Mexico with “the opportunity to once again produce in our country, strengthening national industry and food security, reducing supply chain vulnerabilities and contributing to the creation of jobs.”

Energy expert: The investment is ‘irrelevant’ for Pemex 

While former President Andrés Manuel López Obrador claimed to have “rescued” Pemex from years of neglect under previous governments, the fact remains that Mexico’s state oil company is heavily indebted and losing money. Pemex said that its debt fell to an 11-year low at the end of 2025, yet it was still an estimated US $84.5 billion in arrears.

Energy expert Paul Sánchez told El CEO that the investment in petrochemical and fertilizer projects affiliated with Pemex won’t help to remedy the state oil company’s problematic financial situation.

“For Pemex it’s irrelevant,” he said.

Sánchez said that petrochemicals and fertilizers are not “a central business” for Pemex, nor will those industries “generate a return on investment that changes its financial situation.”

He did, however, acknowledge that the fertilizer and petrochemicals are “strategic” for Mexico.

As things stand, “Mexico’s agricultural sector is structurally dependent on imported fertilizers, primarily urea sourced from the United States, Russia and China,” Mexico Business News reported.

“That dependence creates direct exposure to geopolitical supply disruptions, exchange rate volatility, and the same kind of strategic vulnerability that … [Energy] Minister [Luz Elena] González has been invoking in the context of natural gas imports,” the news outlet wrote.

While it remains to be seen whether the 93-billion-peso investment can reduce reliance on fertilizer and petrochemical imports — a key goal of the government’s Plan Mexico economic initiative — Mexico Business News wrote that the “ambition” of the investment initiative “is matched by an equally documented history of underperformance on large-scale petrochemical and fertilizer projects.”

“Analysts note that Pemex’s heavy debt load and history of delays and cost overruns on large projects raise questions about whether the company can successfully deliver the ambitious program on schedule and within budget,” the news outlet reported.

For his part, Víctor Ramírez, founding partner of energy consultancy Perceptia 21, told El CEO that Pemex Industrial Transformation, a subsidiary of the state oil company that operates petrochemical complexes, is one of the main sources of financial losses for Pemex.

“Pemex Industrial Transformation has been one of the areas that has most damaged the financial results of the company,” said Ramírez, who contended that there are questions about what the real cost of the fertilizer and petrochemicals investment will be.

He also said that “if we’re going to substitute imports by producing fertilizers at very high costs or which require permanent subsidies,” investing in the domestic industry “is not necessarily a desirable strategy.”

Sheinbaum targets natural gas production as next step in energy sovereignty push

Sánchez said that one of the greatest challenges of increasing the production of fertilizers and petrochemicals in Mexico will be guaranteeing the supply of the required raw materials. Natural gas — a fuel for which Mexico is heavily dependent on imports from the United States — is the primary feedstock for urea and ammonia.

Carpio to visit Brazil this month, says Petrobras chief 

As Sánchez noted, fertilizers and petrochemicals are not the main game for Pemex. Rather, the company’s central focus is oil: extracting crude from onshore and offshore fields and refining it at one of the eight refineries it operates — seven in Mexico and one in the United States.

To aid oil exploration in deepwater fields, Sheinbaum said earlier this month that Pemex would sign an agreement with its Brazilian counterpart Petrobras as soon as this month.

“Why is this agreement important? Because Petrobras is an expert in exploration and production in deep water. And it’s also an expert in a technique that only they have,” she said June 2, explaining that said technique makes it possible to determine whether there are additional oil reserves “at greater depths” in fields that have already been exploited.

While the Pemex-Petrobras agreement has not yet been signed, the chief of the Brazilian company, Magda Chambriard, said Friday that Carpio was expected to visit Brazil this month.

According to a Bloomberg report, Chambriard said that Petrobras and Pemex “are seeking to sign initial documents including non-disclosure agreements and memorandums of understanding to begin joint studies for offshore exploration in Mexico’s side of the Gulf [of Mexico], oil production and refining.”

salvador, bahia, brazil - january 6, 2021: view of Petrobras' gas station in the neighborhood of Stiep, in the city of Salvador.
Founded in 1953, Petrobras already operates in the Gulf of Mexico via a joint venture with Murphy Exploration & Production, according to Reuters. (Shutterstock)

Bloomberg reported that Pemex didn’t respond to a request for comment.

Brazilian President Luiz Inácio Lula da Silva first floated the idea of a joint venture between Petrobras and Pemex in March, saying that the latter could “get a great deal of help” from the former.

Lula, as the president is best known, spoke to Sheinbaum last Wednesday. On Thursday, Sheinbaum reiterated that Pemex was close to signing an agreement with Petrobras.

“As I’ve said, they have highly-developed techniques for deepwater and ultra-deepwater exploration,” she said.

Sheinbaum said that Pemex and Petrobras could together work toward the joint exploitation of an oil field in the Gulf of Mexico, which is Mexico’s main source of crude.

With reports from El CEO, Bloomberg and Mexico Business News  

Second Cuba-centered quake in 8 days shakes the Yucatán Peninsula

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map of earthquake near Cuba
The distance between Cuba and Cancún is less than 200 kilometers (120 miles) at their closest point. The shaking of a 5.1-magnitude earthquake, with its epicenter marked by the star, reached the coastal Mexican city on Monday. (usgs.gov)

Eight days after a 6.1 magnitude earthquake shattered glass windows and damaged facades at hotels in Cancún, a second quake measuring 5.1 was recorded shortly after noon on Monday, again startling residents across the Yucatán Peninsula, which is not prone to earthquakes.

Both temblors were centered off the coast of Cuba, the first with an epicenter 118 kilometers offshore from Mantua, Cuba. The second on Monday sparked concern of a tsunami reaching Mexico’s Quintana Roo coast, but state authorities quickly ruled out that idea and are concentrating instead on inspecting for any structural damage.

Seismic activity is not often felt on the Peninsula, even though the Oriente Fault — an underwater fracture zone considered one of the most active tectonic boundaries in the Caribbean — runs along the south of Cuba.

At their closest points, the distance between Cuba and the Yucatán Peninsula is less than 200 kilometers (120 miles).

Quintana Roo authorities established communication with municipal officials to activate emergency protocols. Inspections of critical and vulnerable infrastructure (airports, shopping centers, public buildings and tourist areas) were carried out in coordination with local agencies and special procedures were publicized. 

Thus far, there have been no injuries or casualties reported, and no major structural damage.

Residents are encouraged to contact civil protection authorities or emergency services as needed, particularly to report cases of structural damage.

The governor’s office assured the public that there was no tsunami risk for the coasts of Quintana Roo and urged citizens to remain calm and stay informed through official channels.

Last week’s Caribbean quake was actually preceded by a small, shallow temblor in the state of Yucatán, about 370 kilometers (230 miles) west of Cancún. Though it might have seemed random, seismologists say a local fault line there has caused a few low-intensity tremors lately.

With reports from El Herald de México, Novedades, The Cancun Sun and Infobae

President Sheinbaum expecting to meet with King Felipe VI of Spain

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Diptych of Sheinbaum and King Felipe VI of Spain
Sheinbaum said on Tuesday that talks are ongoing between diplomatic authorities from both countries to finalize the details of a meeting in Mexico City. (Wikimedia Commons/Presidencia)

President Claudia Sheinbaum said on Tuesday that there is a high probability that she will meet with King Felipe VI of Spain during his trip to Mexico to attend the World Cup match between Spain and Uruguay on June 26 in Guadalajara.

When asked about the potential meeting, Sheinbaum said that talks are ongoing between diplomatic authorities from both countries to finalize the details.

Spanish king to attend the Spain-Uruguay World Cup match in Guadalajara

“Yes, it’s likely,” Sheinbaum said. “It’s still being discussed with the Spanish Foreign Ministry and the Spanish government. And I think we’ll announce it tomorrow or the day after,” she said, referring to Wednesday or Thursday.

King Felipe VI is scheduled to travel to Mexico to attend the match between Spain and Uruguay on June 26 in Guadalajara, Jalisco. The trip results from an invitation extended by the Mexican government to various heads of state and representatives of countries participating in the tournament. 

The Spanish Royal House confirmed the monarch’s attendance at the World Cup match in May.

The meeting between the two heads of state will be held in Mexico City and will represent the highest level of dialogue between the two countries in recent years.

Diplomatic relations between Mexico and Spain went through a period of tension during the administration of former President Andrés Manuel López Obrador, mainly due to disagreements related to the legacy of the Spanish Conquest. 

Embed from Getty Images

The last time a Mexican president met with the monarch was eight years ago, when former President Enrique Peña Nieto traveled to Spain to meet with King Felipe and former head of the Spanish Government Mariano Rajoy.

In recent months, both nations have shown signs of rapprochement, particularly following King Felipe’s public declarations acknowledging the ‘abuses’ made during the Conquest. Sheinbaum described the king’s statement as “a gesture; an approach that we acknowledge,” and called on both countries to keep working on the process of recognizing the great civilizations that existed in Mesoamerica and in other parts of today’s Latin America.

The potential meeting between Sheinbaum and King Felipe VI would be interpreted as a further gesture of normalization and strengthening of bilateral ties, taking advantage of the international visibility offered by the 2026 World Cup.

With reports from El Universal and El País

US ambassador contradicts Sheinbaum administration, says US has transferred 313 wanted criminals to Mexico

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U.S. Ambassador Johnson
According to U.S. Ambassador Johnson, the United States has transferred 313 wanted criminals to Mexico to face justice during President Donald Trump's second administration. (@USAmbMex/X)

U.S. Ambassador to Mexico Ronald Johnson said Monday that the United States has transferred 313 wanted criminals to Mexico to face justice during President Donald Trump’s second administration.

His announcement on social media came almost a month after the Mexican government said that the United States hadn’t sent to Mexico any of the 269 people whose extradition it requested between January 2018 and May 2026.

On the X social media site, Johnson wrote:

“U.S. Border Patrol agents in the Rio Grande Valley (@USBPChief & @USBPChiefRGV) captured and sent back a Mexican national wanted in Mexico for the prostitution of a minor and sexual assault. Under President Trump’s Administration, the United States has transferred 313 wanted criminals to Mexico to face justice. This case represents another example of the strong U.S.-Mexico cooperation being advanced by @POTUS @realDonaldTrump and President @Claudiashein. Together, we are bringing criminals to justice and making our nations safer.”

It was unclear whether the Mexican Ministry of Foreign Affairs had submitted a formal extradition request for any of the 313 “wanted criminals” that Johnson said have been sent to Mexico since early 2025.

On May 19, Foreign Affairs Minister Roberto Velasco said that 36 extradition requests submitted by Mexico to the U.S. between Jan. 1, 2018 and May 13, 2026 were denied, while 233 were “still pending completion.”

Foreign Affairs Minister Roberto Velasco
Foreign Affairs Minister Roberto Velasco said on May 19 that 36 extradition requests submitted by Mexico to the U.S. between Jan. 1, 2018 and May 13, 2026 were denied. (Saúl López Escorcia/Presidencia)

President Claudia Sheinbaum said at the time that Mexico had requested the extradition of people in connection with “extremely serious cases.”

“Why haven’t they handed anyone over?” asked Sheinbaum, whose government has sent over 90 organized crime figures to the U.S. in three large transfers that took place in January 2026, August 2025 and February 2025.

The government’s assertion last month that the U.S. hadn’t fulfilled any of Mexico’s extradition requests came as it faced pressure to arrest and extradite Sinaloa Governor Rubén Rocha Moya and other Sinaloa-based current and former officials accused by U.S. prosecutors of drug trafficking in league with the Sinaloa Cartel. Mexican authorities have said that the U.S. hasn’t provided sufficient proof to warrant the arrest of the defendants for the purpose of extradition.

However, two of the accused officials — both former ministers in the Sinaloa state government — turned themselves in to U.S. authorities last month.

While various U.S. officials have touted close security cooperation with Mexico, the bilateral security relationship has recently been strained due to the CIA’s alleged participation in a drug lab raid alongside Chihuahua state police without the knowledge or authorization of the Mexican government, and U.S. prosecutors’ drug trafficking accusations against Rocha Moya — an ally of Sheinbaum — and other officials, various of whom are affiliated with the ruling Morena party.

With reports from El Financiero

‘We will defend this territory with our lives’: Activists blockade Topolobampo ammonia plant

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thousands joined a march from Los Mochis toward Topolobampo, ending with a symbolic “closure” of the plant
Last week, thousands joined a march from Los Mochis toward Topolobampo, ending with a symbolic “closure” of the plant. (Eden Dusk/Facebook)

Before dawn on Monday, Indigenous activists opposing a controversial ammonia plant in the northwestern town of Topolobampo, Sinaloa, moved an encampment to block the access road leading to the facility, escalating a 12-year conflict that has grown from a local land-defense struggle into a national campaign. 

Movement leaders say they will not participate in further talks with the Mexican government unless construction on the plant, being developed by Switzerland-based Proman Gas y Petroquímica de Occidente (GPO), is suspended. 

protest encampment Port of Topolobampo
Protesters are aiming to prevent any further construction on the plant, which is still months away from completion. (Juahn Ayala/Facebook)

The action came after weeks of intensive protests. On June 12, Environment Minister Alicia Bárcena met with community representatives in the nearby town of Los Mochis, where she announced a new environmental inspection of the project, guarantees for the right to protest and continued dialogue with affected communities.

“I know there are legitimate concerns about the possible environmental and social impacts of these projects, and I want to tell you that we are here precisely to listen,” Bárcena told community representatives.

The project lies within territory claimed by Yoreme-Mayo communities as part of their ancestral lands. “We’ve done years of dialogue …and I believe they know the subject well; they know this project is mired in major irregularities,” said Yoreme traditional governor Felipe Montaño. 

Opponents say the plant, under construction since 2024, threatens the ecosystem of Ohuira Bay, the traditional Yoreme way of life and the fishing economy on which many local communities depend. The bay is part of a Ramsar-listed wetland of international importance.

Montaño also called on German development bank KfW to reconsider its support for the project. “This bank cannot finance a project that is going to cause an ethnocide and an ecocide.”

Activists said the encampment had grown to around 200 people by late Monday afternoon. Montaño said some workers had arrived at the site but did not attempt to enter the facility. He said several expressed sympathy for the protest. “The project is already 80% complete, so we have no choice,” said Montaño. “We will fight to the last consequences. If we must give our lives here, we are prepared to do so.”

Protesters mount round-the-clock resistance as Topolobampo ammonia plant nears completion

A week before, thousands joined a march from Los Mochis toward Topolobampo, ending with a symbolic “closure” of the plant. Meanwhile, solidarity demonstrations have taken place in Mexican cities including Culiacán, Mazatlán, Monterrey and Mexico City, where activists assembled in front of the German Embassy.

After 17 days encamped in the Port of Topolobampo, where they tried to block delivery of company equipment, Indigenous authorities decided to move their blockade to the plant’s entrance.

KfW IPEX-Bank, which helped finance the project, did not directly address questions about the recent protests or the Environment Ministry’s (Semarnat) intervention, instead referring Mexico News Daily to a November 2025 response to the UN human rights office defending the project’s environmental review and consultation process. 

Semarnat and GPO did not respond to requests for comment before publication.

The plant originally broke ground in 2015 but was halted after Mexico’s Supreme Court ruled in 2022 that it had proceeded without proper Indigenous consultation. Construction resumed after a federal court upheld a subsequent consultation process in which the four communities closest to Ohuira Bay voted against the project, but were outvoted when seven additional, arguably less directly affected communities were added to the process.

Tracy L. Barnett is a Guadalajara-based freelance writer and the founder of The Esperanza Project.

MND Local: Should Cabo San Lucas become an autonomous municipality?

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Cabo San Lucas, view from the city from Land's End in
Cabo San Lucas is the most popular destination in a state that depends on tourism, but historically has had very little political power. (Zetong Li/Unsplash)

Tourism is the primary economic industry in Baja California Sur — it accounts for 60% of the state’s gross domestic product, as opposed to 8.5% in Mexico as a whole — and Los Cabos is its biggest driver. Of the 4.5 million tourists who vacationed in Baja California Sur last year, almost 3.8 million of them, or 84%, chose Los Cabos. 

But it shouldn’t be supposed that the top two destinations in Los Cabos — Cabo San Lucas and San José del Cabo — are in any way comparable in terms of the revenue they produce. Cabo San Lucas has more hotel rooms than San José del Cabo, the Ruta Escénica and the East Cape combined. It also boasts the highest occupancy rates.

Waldorf Astoria Los Cabos Pedregal tucked between the Pedregal hillsides and the beach in Cabo San Lucas
Cabo San Lucas, the southernmost city on the Baja California peninsula, has been a popular tourism destination for over 60 years. (Waldorf Astoria Los Cabos Pedregal)

Cabo San Lucas alone accounts for the million-plus cruise ship passengers who visit the municipality annually. Its marina is the center of whale-watching season, its largest beach — Playa El Médano — is ground zero for the 50,000 students who descend each year during Spring Break, and it consistently hosts the biggest and most well-attended events (including the world’s richest fishing tournament). 

The Land’s End city is thus, without question, the most important revenue generator and impetus to economic growth in the state. It’s also only a matter of time until it becomes the most populous city (it’s currently second to La Paz, the state capital, per the 2020 census, but with a much higher growth rate). 

So why does it have so little political power?     

Why Cabo San Lucas needs more autonomy

Cabo San Lucas is a delegation within the larger Los Cabos municipality, whose government is based in San José del Cabo, meaning essentially it is a territorial subdivision that remains hierarchically dependent on the municipal government for public works and services. This relationship has existed since Los Cabos became one of the now five municipalities in Baja California Sur in 1981, building on Cabo San Lucas’ creation as a sub-delegation of La Paz in 1976.

But because of the explosive growth that Cabo San Lucas has experienced over the last few decades — the city’s population nearly tripled, from 68,463 to 202,694, between 2010 and 2020 alone — it has increasingly dealt with chronic shortfalls of public services, security and infrastructure, an especially galling situation given its outsized contributions in terms of revenue and tax base.

During a recent meeting in La Paz held to consider the initiative to make Cabo San Lucas the state’s sixth municipality, elevating it in status in the interests of more autonomy to address its unique problems and challenges, Representative Sergio Huerta Leggs, president of the Special Plural Commission, noted: “We’re not saying this (that Cabo San Lucas deserves to be a municipality) to create confrontation, but to highlight the obvious; we experience it daily on the streets. More than 200,000 residents are receiving budgetary attention equivalent to a population of less than 50,000.”

A municipal map of Los Cabos
A municipal map of Los Cabos, with the boundaries of the cape cities Cabo San Lucas and San José del Cabo, the home of municipal governance, highlighted. (Ayuntamiento de Los Cabos)

Representative Alondra Torres, president of the State Congress’s Board of Directors, was even more succinct, per Diario El Independiente. “Making Cabo San Lucas a municipality is not just an administrative act, but the fulfillment of a dream of justice for its residents.”

The initiative to create a sixth municipality in Baja California Sur

The movement to elevate Cabo San Lucas to a municipality has been growing for two decades, but it wasn’t until 2019, when then-Representative Lorenia Lineth Montaño Ruiz proposed the idea, that it began to seem like it might eventually become a political reality … even as it failed to pass on that occasion.

The new version of the citizen-generated initiative, however, put forth by José Luis Alba Corona, president of the Citizen Council, along with Arturo López Delgado and Guadalupe Castro, shows much more positive signs of momentum. The initiative was formerly offered and began the process of review by the Political Affairs Committee of the State Congress in February 2025.

The legacy of regional history

To understand the current predicament of Cabo San Lucas as the most important economic force in the state — yet simultaneously an underserved delegación within a larger municipality centered in San José del Cabo, and beholden to state power in La Paz — it helps to have an understanding of regional history.

When Spanish exploration in the region began in the 16th century, the peninsula was known only as California. It wasn’t until 1804 that a territorial distinction was made between Alta California (now the U.S. state of California) and Baja California. The first political partitionings, meanwhile, were those made during the Jesuit era, when missionary jurisdictions were drawn up.

The Jesuit period began in 1697 and ended in 1767. Which is to say, a very long time ago. But it’s impossible to overstate the importance of this legacy, since even centuries later, as the Territorio Sur de la Baja California was established in 1931 and Baja California Sur became, along with Quintana Roo, one of the last two Mexican states in 1974, political power still largely resided in the same places it had been ensconced during the days of padres traveling on burros through inhospitable landscapes to convert Indigenous peoples.

Delegation office entrance in Cabo San Lucas
Cabo San Lucas, long a delegación within the larger Los Cabos municipality, is seeking greater autonomy commensurate with its economic power and demographic needs. (Ayuntamiento de Cabo San Lucas)

Power still resides in the same places it always has

It hardly seems a coincidence, for example, that four of the five governmental seats of the current municipalities in the state — in Mulegé, Loreto, La Paz and San José del Cabo — were all formerly the sites of Jesuit missions. Of course, the Jesuits chose the locations of these religious outposts carefully, based on factors like fresh water, arable land for farming and defensive capacity, and the fact that La Paz and San José del Cabo, in particular, have remained among the most notable communities on the peninsula for the entirety of their existence, even long after the secularization of the missions, confirms the Jesuits’ keen judgement.

But quite obviously, Baja California Sur is a very different place today than it was even 50 years ago, let alone 300. Tourism, not farming or fishing, is now the primary income generator, and because of that transformation, Cabo San Lucas has ascended from modest beginnings to become the single most important destination in the state.

Remaking the map of El Sur

No official maps have been released showing what the creation of a sixth municipality in Cabo San Lucas would mean for the political boundaries of the southern rim of Baja California Sur. But clearly, it would be a seismic shift, not only in terms of the territory carved out of Los Cabos, but in lost revenue and power for the current municipal government in San José del Cabo. Not surprisingly, then — because no politician likes to give up power — current Los Cabos mayor Christian Agúndez Gómez has come out strongly against the initiative. 

But, as Torres noted, this is about justice, and the right of the most powerful economic engine in the region to exercise a greater degree of autonomy over its governance and future. As of now, the State Congress is working through a schedule of forums, meetings and working groups on the issue in order to better inform the electorate ahead of the steps to come. 

A question of votes

Ultimately, it comes down to votes. To be approved, the initiative must meet the benchmarks stipulated in Article 122 of the state constitution. The biggest hurdle is a plebiscite, or regional vote, which at present requires the participation of two-thirds of the residents of the new municipality, confirming that they are in favor of it. This participatory threshold is so high as to be realistically unattainable, which is why a reform has recently been introduced that would significantly reduce the number to 15% of registered voters.

If the plebiscite passes, then the Special Plural Commission, of which Huerta Leggs is president, will prepare a report and the state’s Congress will vote on it, with a two-thirds supermajority required for the initiative to be sent to the executive branch for final approval.

It’s still a steep uphill climb.

But as every sanluqueño knows, and even the initiative’s most ardent opponents must, on some level, admit, this is long overdue.

Chris Sands is a writer and editor for Mexico News Daily, and the former Cabo San Lucas local expert for the USA Today travel website 10 Best and writer of Fodor’s Los Cabos travel guidebook. He has also contributed to numerous other websites and publications, including The San Diego Union-Tribune, Marriott Bonvoy Traveler, Forbes Travel Guide, Porthole Cruise and Travel, and Cabo Living.

Homicide rate in May was its lowest in 11 years: Tuesday’s mañanera recapped

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Sheinbaum stands before a graphic touting 56,134 arrests for high-impact crimes since she took office
Since Sheinbaum took office in October 2024, authorities have arrested more than 56,000 people for high-impact crimes. (Saúl López Escorcia/Presidencia)

Sheinbaum’s mañanera in 60 seconds

  • 🔫 Homicide rate hits post-2015 low: The government presented preliminary data showing an average of 47.3 homicides per day in Mexico in May — down 27.6% from May 2025 and the lowest monthly figure since Sheinbaum took office. Officials said it was also the least violent May since 2015.
  • 📉 Downward trend extends across 2026: The January-May period averaged 50.4 homicides per day, a 29.8% drop year-on-year and the least violent such period since 2015. Murders fell in 28 of Mexico’s 32 federal entities, with San Luis Potosí leading declines at 81%.
  • 🗺️ Guanajuato still Mexico’s deadliest state: With 668 homicides between January and May — 8.8% of the national total — Guanajuato topped the violence ranking, followed by Baja California, Chihuahua and Sinaloa.
  • 🚔 Security sweep by the numbers: Since Sheinbaum took office in October 2024, authorities have arrested more than 56,000 people for high-impact crimes, dismantled over 2,400 drug labs, seized 419 tonnes of narcotics and confiscated nearly 30,000 firearms.
  • 💸 Extortion crackdown yields 1,468 arrests: Security Minister Omar García Harfuch reported that nearly 1,500 alleged extortionists have been detained since the national anti-extortion strategy launched last July.
  • 👏 Sheinbaum praises Security Cabinet: Closing the presser, the president publicly commended each member of her Security Cabinet by name, saying: “They are exceptional public servants who love Mexico and love their people.”

Why today’s mañanera matters

The federal government touted progress in combating insecurity at President Claudia Sheinbaum’s Tuesday morning press conference. The president’s daily pressers give the government the opportunity to counter the narrative — peddled by opposition parties and others — that the security situation is worsening in Mexico.

Insecurity remains a major problem in parts of Mexico, but the Sheinbaum administration pointed out on Tuesday — as it frequently does — that the incidence of homicides and various other high-impact crimes is on the wane.

The government also used today’s mañanera as a platform to promote the success of its security strategy, which is based on four central tenets, including the strengthening of intelligence and investigative practices and a bolstering of the National Guard, the federal security force that was established in 2019. Supporting the federal security plan are initiatives such as the national strategy against extortion, presented by the government last July.

Security Minister Omar García Harfuch reported on Tuesday that well over 1,000 alleged extortionists have been arrested since the strategy was implemented. That data point was one of various significant ones presented at today’s mañanera. Together they painted a picture of an improving security situation in Mexico, a country whose security problems have recently been in the spotlight of international media outlets as it is currently co-hosting the FIFA men’s World Cup with the United States and Canada.

Government touts decline in homicides in May  

National Public Security System chief Marcela Figueroa presented preliminary data that showed there was an average of 47.3 homicides per day across Mexico in May.

She highlighted that the daily average in May was 46% lower than the average of 86.9 homicides per day in September 2024, the final month of Andrés Manuel López Obrador’s presidency.

The decline compared to May 2025 was 27.6%.

Figueroa noted that the daily homicide rate in May was the lowest of any month since Sheinbaum took office in October 2024. She also highlighted that last month was the least violent May since 2015 in terms of homicides.

Homicides also down in first 5 months of 2026 

Figueroa also presented data that showed there was an average of 50.4 homicides per day in the first five months of 2025. That figure represents a decline of 29.8% compared to the first five months of last year.

Data presented by Figueroa showed that the January-May period of 2026 was the least violent first five months of any year since 2015.

Guanajuato remains Mexico’s most violent state 

Figueroa reported that 54% of all homicides in the first five months of 2026 occurred in eight states.

In the period, there were 7,587 homicides, according to the data presented.

Guanajuato was the most violent state between January and May, recording a total of 668 homicides. That figure represents 8.8% of all homicides in Mexico in the period. The Bajío region state has been Mexico’s most violent state in recent years. Various criminal groups operate in the state, including the Jalisco New Generation Cartel and the Santa Rosa de Lima Cartel, which have been engaged in a bloody turf war for years.

After Guanajuato, Mexico’s most violent states between January and May were:

  • Baja California: 592 homicides (7.8% of the national total)
  • Chihuahua: 590 homicides (7.7%)
  • Sinaloa: 517 homicides (6.8%)
  • Morelos: 450 homicides (5.9%)
  • México state: 449 homicides (5.9%)
  • Guerrero: 418 homicides (5.5%)
  • Veracruz: 406 homicides (5.3%)

There was a total of 4,090 homicides between January and May in the eight most violent states, representing 54% of the national total, as mentioned by Figueroa.

The least violent state in the period was Yucatán, with just 12 homicides. Mexico City ranked as the 11th most violent entity between January and May, with 351 murders.

Homicides declined in 28 entities in first 5 months of 2026 

Figueroa said that the federal government’s security strategy has led to a reduction in homicides “in almost the entire country.”

She presented data that showed that murders were down in annual terms between January and May in 28 of Mexico’s 32 federal entities.

Five states recorded annual reductions greater than 50% in the first five months of 2026.

  • San Luis Potosí: Homicides down by 81%.
  • Zacatecas: Homicides down by 63%.
  • Quintana Roo: Homicides down by 60.8%.
  • Nayarit: Homicides down by 55.4%
  • Guanajuato: Homicides down by 53.4%.

High-impact crimes also down in 2026 

Figueroa presented data that showed that an average of 457.1 high-impact crimes were reported in the first months of the year. That figure represents a decline of 11.3% compared to 2025.

Among the offenses classified as high-impact crimes are homicide, kidnapping, rape, violent robbery and acts of extortion.

More than 56,000 arrests since Sheinbaum took office 

After highlighting that a significant number of “priority targets” have been arrested since Sheinbaum took office in late 2024, García Harfuch presented data on drug lab dismantlements, arrests and seizures of drugs and firearms.

Between October 2024 and May 2026, authorities:

  • Dismantled 2,407 clandestine drug laboratories.
  • Detained 56,134 people who allegedly committed high-impact crimes.
  • Seized 419.3 tonnes of drugs.
  • Confiscated 29,572 firearms.

Almost 1,500 alleged extortionists detained since last July 

García Harfuch reported that “within the framework of the national strategy against extortion,” 1,468 extortionists were arrested between July 6, 2025 and May 31, 2026. Arrests occurred in the majority of Mexico’s states.

“Combating this crime has been a priority for the president of Mexico and the institutions of the Security Cabinet in coordination with the 32 entities of the republic,” García Harfuch said.

Sheinbaum acknowledges the work of the federal Security Cabinet 

Shortly before concluding her press conference, Sheinbaum told reporters she wanted to publicly acknowledge the work of the federal government’s Security Cabinet, whose members include García Harfuch, the defense, navy and interior ministers, and the head of the National Guard.

“My appreciation, my admiration of the work that the cabinet does,” she said.

Security Minister Omar García Harfuch
Security Minister Omar García Harfuch announced on Tuesday that 1,468 extortionists were arrested between July 6, 2025, and May 31, 2026. (Saúl López Escorcia/Presidencia)

Sheinbaum acknowledged and praised each of the six officials with her at today’s mañanera: Figueroa, García Harfuch, National Guard Commander Guillermo Briseño Lobera, Navy Minister Raymundo Pedro Morales Ángeles, National Defense Minister Ricardo Trevilla Trejo and Interior Minister Rosa Icela Rodríguez.

“Look at the result — a 46% reduction in homicides,” the president said, referring to the comparison between September 2024 and May 2026.

“A reduction in all high-impact crimes. A reduction in homicides of 46%. In other words, there are practically half the homicides that there were in September 2024,” Sheinbaum said.

“… So, my applause, my recognition, my admiration [of the Security Cabinet]. They are exceptional public servants who love Mexico and love their people,” she said.

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

Opinion: This generation of soccer fans separate footie from FIFA

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Teenagers playing football on a pitch in Oaxaca
Teenagers in Mexico still love soccer. But thanks to the internet, they're more aware of the issues that surround events like the World Cup. (César Márquez/Unsplash)

The electricity had gone out again in our neighborhood on the east side of Bucerías, sending people out onto our dirt road to wait for the fans to spin back to life and the lights to come back on. 

The neighborhood kids drifted toward us with footballs (soccer balls, for our U.S. readers) tucked under their arms while parents sat outside fanning themselves in the thick evening heat.

Palapas on the beach in Bucerías, Nayarit
Teenage fans know the score (and not just the one to the latest game), even in Bucerías, north of Puerto Vallarta. (Carolyn Hancox/Unsplash)

Me being English means the teenagers in the neighborhood know I’m always good for a footie conversation. Usually, that means debates about the Premier League, arguments over who Mexico should start up front or listening to them explain why their generation watches highlights on TikTok instead of full matches. 

But this time, as they knocked a ball around between parked motorcycles, the conversation shifted toward the World Cup and something surprising emerged.

A generational shift in perception about the World Cup

The boys, ranging from about 13 to 17 years old, still love football with the same intensity that generations before them did. They play for hours in our dusty street until it gets too dark to see the ball. 

They wear worn-out jerseys of Chivas, Club América, Barcelona and Manchester City. They know every skill move, every transfer rumor and every controversial refereeing decision before most adults do.

But unlike their parents and grandparents, they don’t seem especially excited about the World Cup.

“We love football,” 17-year-old Ángel told me while balancing the ball against his ankle. “Just not all the fake stuff around it.”

That feeling came up repeatedly as the group and I talked.

Football versus the politics and economics that surround it

For older generations in Mexico, the World Cup carried a near-sacred energy. Families gathered around televisions, streets emptied during Mexico matches and entire neighborhoods celebrated goals together. 

The tournament felt larger than sport, as though it were a collective emotional event capable of briefly making people forget politics, money problems or everyday stress.

But this younger generation has grown up online, connected to the global world in ways previous generations simply weren’t. They don’t just see the matches. They also see the corruption allegations, sponsorship deals, political controversies and billion-dollar branding campaigns attached to the sport.

“My dad only knew football from TV,” José, 15, told me. “We see everything now. We see the money and the ugly side.” 

At 14, Emiliano already speaks about FIFA with remarkable cynicism.

FIFA site
Young Mexican fans understand that for FIFA, everything about the World Cup comes down to money, and that likely neither they nor anyone they know can afford tickets. (Shutterstock)

“They talk about peace and unity every World Cup,” he said, shrugging. “But everything is money.”

Another teenager, 15-year-old Diego, rolled his eyes.

Separating sport from spectacle

“Yeah. It’s stupid, and it makes me mad,” he said. “FIFA gave a peace prize to Donald Trump, but I know what he really thinks about me. FIFA acts like they represent all of us; that’s not true when they give an award like that.”

The others nodded.

Several mentioned outrage over ticket prices, saying the World Cup increasingly feels designed for the wealthy and corporate guests rather than ordinary fans who actually live and breathe football year-round.

“Who can actually afford to go?” asked Ángel. “No one I know!”

Others mocked what they described as performative messaging from FIFA and major sponsors online.

“Every company suddenly cares about equality because football is popular,” José laughed. “Then, after the tournament, they disappear.”

A mature awareness among younger viewers

What struck me most wasn’t their anger so much as their awareness. These teenagers haven’t fallen out of love with football itself; they’ve simply become harder to impress with the spectacle surrounding it.

Social media plays a huge role in that shift: Their grandparents experienced football mostly through television and newspapers; today’s teenagers consume the sport alongside a nonstop stream of commentary, criticism and global news. 

They see luxury suites beside poverty. They see political hypocrisy discussed in real time. They see players become influencers and clubs become corporations.

“We still watch Mexico, but not every other game,” one younger boy chimed in from the sidelines. “We’re not stupid.”

Julián Quiñones celebrates after scoring the first goal of the 2026 FIFA world cup
El Tri’s Julián Quiñones celebrates after scoring the first goal of the 2026 FIFA World Cup on Thursday. (Moisés Pablo/Cuartoscuro)

At their age, I certainly wasn’t thinking that deeply about football governance or billion-dollar sponsorships; I was just excited for kickoff.

Yet, despite all their skepticism, the game itself still transforms the street every evening.

As darkness settled over the neighborhood and the power remained out, the conversation faded and another match began. 

Flip-flops became goalposts. Younger kids chased rebounds into ditches while the older ones argued over fouls with dramatic intensity worthy of a World Cup final itself.

The romance is gone, but the love is still real

And in that moment, it was obvious that football still matters enormously to them. Maybe even more than before. The difference is that this generation no longer sees the World Cup purely through romantic eyes. 

They can hold two truths at once: Football remains beautiful, but the machine built around it often feels artificial, commercialized and disconnected from the communities that love the game most.

“The football is still real,” Ángel said before jogging back into the game. “It’s everything around it that feels weird now.”

Writing this now, I realize how impressed I am by their awareness of a world far beyond this dusty dirt road in Bucerías.

Despite growing up in a less-than-modest neighborhood, where power outages still send everyone outside at night, they speak confidently about global politics, corruption, inequality and the difference between what they believe is right and wrong. 

Whether you or I agree with all their opinions, there’s something admirable about a generation that still believes principles should stand for something.

Their parents saw the World Cup as pure magic. These kids still see the magic. They’re just no longer blind to what’s happening behind the curtain.

Charlotte Smith is a writer and journalist based in Mexico. Her work focuses on travel, politics, and community. You can follow along with her travel stories at www.salsaandserendipity.com.

With ‘Smartshoring Mexico,’ BBVA aims to aid arrival of Spanish investment

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Mexico City, Mexico - August 25, 2021: Aerial view of BBVA bank tower
The idea behind BBVA's coming "smartshoring" program is to provide services to companies entering the Mexican market that help them navigate local idiosyncrasies. (Shutterstock)

The multinational banking chain BBVA announced plans on Monday to launch a new service to facilitate Spanish companies’ expansion into the Mexican market through its “Smartshoring Mexico” service. 

BBVA proposed providing smartshoring rather than conventional nearshoring services to shift the focus from enhancing proximity to major markets to helping companies develop resilient, technologically advanced and sustainable networks in the Mexican market. 

BBVA sucursal
In Mexico, BBVA has more than 30 million customers and a 25% market share in loans. (Josip Ivanković/Unsplash)

Spanish, Latin American and Turkish companies attended a meeting with BBVA executives in Madrid, where BBVA’s global head of corporate and institutional banking, Jaime Sáenz de Tejada, stressed the bank’s strong presence in Mexico, where it has more than 30 million customers and a 25% market share in loans.

“Mexico is highly integrated into U.S. production chains, has extraordinary industrial capacity, a talented workforce, a high level of sophistication and offers access to the world’s largest market, the United States,” said De Tejada. “It’s an extraordinary opportunity for Spanish companies.”

In 2025, BBVA supported over 3,400 Spanish companies in expanding into the Mexican market. The bank will now offer even more comprehensive support to help companies navigate the procedures required to operate in Mexico. 

Services will be offered in three stages. Companies not yet established in the Mexican market will be given a “welcome pack,” including a checking account, a payroll account and preferential foreign-currency terms.

The bank then offers a “soft landing” service by connecting companies with legal, tax, accounting and real estate firms to facilitate key procedures for establishing a company in Mexico and reduce uncertainty. 

Finally, the Spanish companies are connected with local clients and suppliers to help them integrate more quickly into the local value chain. 

Spain and Mexico want to double bilateral trade by 2030

On June 2, Mexico and Spain announced plans to double bilateral trade, as well as expand mutual investment by 50%, before 2030, following the signing of the bilateral treaty known as the Modernized Global Agreement between Mexico and the European Union.

Spanish exports to Mexico represent 2.8% of its total sales outside the European Union, according to the Economy Ministry’s Foreign Trade Report. This figure is higher for BBVA, at 4.6%, demonstrating the bank’s strong presence in the Mexican market. 

With reports from Demócrata and El Día

With direct talks broken off, police prepare for more protest actions from CNTE

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CNTE campamento
While the CNTE announced more demonstrations this week, President Sheinbaum said it appears that members' resolve is starting to wane, noting that the number of protesters in encampments over the weekend was notably lower. (Camila Avyala Benabib/Cuartoscuro)

President Sheinbaum on Monday reiterated that her government would not hold further direct bilateral talks with a dissident teachers’ union that is wreaking havoc in the capital, while federal police prepared for strike action at toll booths on the highway to Cuernavaca. 

Teachers belonging to the CNTE union have been on strike since June 1, with thousands setting up camp throughout Mexico City’s Historic Center. The union has blockaded major thoroughfares in the capital, staged demonstrations at the Mexico City International Airport, the Education Ministry and other federal buildings and threatened to disrupt the World Cup.

CNTE caseta
Striking teachers from the CNTE started their next set of actions Monday by taking over a toll booth in the Tlalpan borough of Mexico City at the start of the Mexico-Cuernavaca highway, waving vehicles through. (Estrella Josento/Cuartoscuro)

During her Monday morning news conference, Sheinbaum said negotiations with the CNTE would continue but would be in a tripartite format involving the federal government, the respective state governments and the union. 

“The government has submitted its final proposal, including a permanent technical working group,” she said, adding that her administration will consult with teachers school by school to address pension reform possibilities.

Also Monday, the federal Security Ministry (SSPC) said it was taking measures ahead of the union’s planned mobilization at the Mexico City-Cuernavaca toll booths.

The SSPC released a statement saying that approximately 800 protesters are expected to carry out actions on the northbound side of the highway (heading into Mexico City), including taking over the Tlalpan toll plaza and granting motorists free passage into the capital.

Union leaders held a press conference in the Los Cipreses neighborhood near the toll booth, announcing their upcoming strike actions and reiterating their demands such as wage increases and pension reform.

The SSPC said it would monitor the demonstrations throughout the day and publish updates on route changes and traffic disruptions, while also providing alternative routes to the public through its official Road Information Center.

The CNTE members are also expected to stage demonstrations in at least 20 states, from Oaxaca and Chiapas in the south to Sonora and Chihuahua up north.

Authorities around the country urged travelers to stay informed through official channels, and to remain alert to alternative route recommendations.

After the federal government announced its final offer and ended negotiations, the union voted on Sunday to reject the proposals and continue its strike. However, El Universal reported that some teachers voiced concern about demonstrations that inconvenience the general public, saying that public sentiment could turn against them.

Living on the streets of the capital is proving to be a burden on the teachers, Sheinbaum said, noting that there were considerably fewer people present in the encampments over the weekend.

Merchants in downtown Mexico City have reported losses in the millions due to the encampments.

With reports from El Financiero, El Heraldo de México and La Jornada