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BYD’s plans to build a Mexican EV factory are back on, company VP hints

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BYD building
One of the factors relevant to BYD's ultimate decision on manufacturing in Mexico may be whether electric vehicles will be exempted from the 50% tariffs imposed on imports from countries without a trade agreement with Mexico. (ChinaCham/on X)

Four months after announcing it was canceling plans to build a manufacturing plant in Mexico, Chinese electric vehicle and battery manufacturer Build Your Dreams (BYD) is said to be reconsidering its decision.

BYD corporate vice president Julián Villarroel told reporters in Guadalajara Wednesday at Expo Transporte ANPACT 2025 — a major trade show for the automotive transport industry in the Americas — that the company’s renewed interest is based on its status as the only electric vehicle (EV) manufacturer that produces its own lithium batteries.

BYD police vehicles in Mexico
BYD sells cars in Mexico, such as the police vehicles shown here, but it scrapped plans to build a plant in this country. That may change, according to recent comments by its vice president. (BYD/on X)

“We are the world’s largest manufacturer of lithium batteries,” Villarroel said. “This integration, since the battery represents a significant part of the vehicle’s cost, allows us to offer competitive prices.”

Villarroel said that as part of its decision-making process the company is lobbying Mexican lawmakers to exempt electric vehicles from a 50% tariff on imports from countries with which Mexico has no trade agreements.

“We’re arguing that electric vehicles shouldn’t be included in the tariff package … because of their impact on pollution,” he said, declining to offer any details about the negotiations.

While describing the proposal to impose tariffs as “understandable,” Villarroel insisted “you ought not to tax electric mobility.”

In August 2024, the newspaper El Economista reported that BYD was considering three locations in Mexico for an electric car plant, citing tax advantages, management support and preferential prices.

Earlier this year, the lack of clarity in U.S. tariff plans for the automotive sector, as well as geopolitical tensions, forced the company to rethink its investment strategy.

Now BYD insists that “it is  “here to stay,” describing Mexico and Brazil as “key markets for our expansion in the EV sector in Latin America.”

The company is expected to issue an official statement by the end of the year, Villarroel said, adding that “Our intention is to stay in Mexico, to broaden our presence in Latin America.”

The news of BYD’s revived interest in establishing a manufacturing plant in Mexico has sparked rumors that it might be among those companies interested in acquiring the Nissan plant in Cuernavaca, slated for closure in March.

Nissan announces plans to close its historic Cuernavaca plant, moving production to Aguascalientes

BYD’s only North American plant is located in Lancaster, California, which produces buses. Presently, its plant in Camaçari, Brazil, serves the Latin American market.

El Economista said that in addition to BYD, Chinese rivals Changan and MG have confirmed their interest in setting up operations in Mexico. None of the three have made mention of the Nissan facilities just 90 minutes south of Mexico City in the state of Morelos.

Villarroel was at the trade show in Guadalajara to attend the launch of the company’s new cargo vans, also known as last-mile delivery units.

He said that 700 BYD trucks are already operating in Mexico and the company expects to close out the year with 1,200 units sold, while next year’s target is 5,000 units.

With reports from El Economista and La Jornada

Editor’s note: A previous version of this article referred to MG as a British brand. While the brand originates in Britain, it is now owned by the Chinese company SAIC and headquartered in Shanghai.

China tightens exports of fentanyl precursor chemicals to Mexico

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light blue pills similar to street fentanyl
Precursor chemicals often sourced from China are used to make illegal fentanyl. The potent opoid is then used to make counterfeit oxycodone pills like those pictured here, or added to a wide variety of street drugs. (US DEA)

The Chinese government has taken a significant step toward curbing the flow of fentanyl precursor chemicals between China and North America, announcing that export licenses are now required to export 13 “drug-making” chemicals to Mexico, the United States and Canada.

China’s Ministry of Commerce and four other government departments announced the new rule on Monday and it took effect immediately.

A grey building with Chinese lettering
The Chinese Ministry of Commerce, pictured, announced the new requirements early this week. (China State Council Information Office)

The announcement and implementation of the rule came 11 days after U.S. President Donald Trump and Chinese President Xi Jinping held talks in South Korea.

After that meeting, the White House said in a statement that China would take “significant measures to end the flow of fentanyl to the United States.”

“Specifically, China will stop the shipment of certain designated chemicals to North America and strictly control exports of certain other chemicals to all destinations in the world,” the statement said.

Chemicals made in China that can be used to manufacture fentanyl enter Mexico legally and illegally via ports on the Pacific coast.

Mexican criminal organizations use those chemicals to make fentanyl in various forms, including pills. Much of the fentanyl they make is shipped to the United States, where the powerful synthetic opioid has fueled an overdose crisis.

The Trump administration has been pressuring Mexico to do more to stem the flow of fentanyl to the U.S., including by imposing a 25% tariff on Mexican goods that don’t comply with the USMCA free trade pact.

Patel takes partial credit for China’s decision  

On Wednesday, the director of the U.S. Federal Bureau of Investigation (FBI), Kash Patel, told a press conference that “the People’s Republic of China has fully designated and listed all 13 precursors utilized to make fentanyl.”

“Furthermore, they have agreed to control seven chemical subsidiaries that are also utilized to produce this lethal drug,” he said.

Patel asserted that China’s decision was a product of his visit to Beijing as well as Trump’s “leadership and direct engagement with China.”

He said his visit to China “was only possible due to President Trump’s historic engagement with President Xi” in South Korea.

FBI Director Kash Patel on China and Fentanyl Precursors

“… Fentanyl precursors are what makes up fentanyl. While we … have been fighting hard to seize and stop drug traffickers, we must attack fentanyl precursors, the ingredients necessary to make this lethal drug,” Patel said.

“That was the sole purpose of my trip to China — to eliminate these precursors, and if successful we would suffocate the drug trafficking organizations’ ability to manufacture fentanyl in places like Mexico,” he said.

Patel said that his recent trip “was the first time an FBI director has been to China in over a decade,” and highlighted that he received an “audience with his counterpart” to directly address the issue of fentanyl precursors and their shipment to North America.

“And again thanks to President Trump’s direct engagement with President Xi, the government of China committed fully to my engagement there on the ground in Beijing. … The Chinese government agreed on a plan to stop fentanyl precursors,” he said.

AMLO also lobbied China on fentanyl 

In April 2023, Mexico’s then President Andrés Manuel López Obrador revealed that he had written to President Xi to seek his support in the fight against fentanyl.

“We turn to you, President Xi Jinping, to ask you for humanitarian reasons to help us control the shipments of fentanyl that may be sent from China to our country,” he wrote.

China responds to AMLO denying ‘illegal trafficking of fentanyl’

A Chinese Foreign Ministry spokesperson subsequently asserted that “there is no such thing as illegal trafficking of fentanyl between China and Mexico.”

However, later in 2023, Mexico and China formed a “Working Group on Chemical Precursors,” and the two countries “agreed on the importance of continuing to cooperate to combat the illicit trafficking of drugs and precursor chemicals,” according to Mexico’s Foreign Affairs Ministry.

In November 2023, López Obrador met with Xi during the APEC Summit in San Francisco, where he emphasized “the importance of reaching an agreement to exchange information on [precursor chemical] shipments leaving Asia.”

The Mexican government also said that Xi “welcomed the recent creation of the Mexico-China Working Group on Precursor Chemicals.”

President Claudia Sheinbaum met with Xi during the G20 Summit in Brazil last November, but there was no indication that the two leaders spoke about fentanyl and the precursor chemicals used to manufacture the drug.

With reports from AP, EFE and Reuters 

New cold front set to sweep across Mexico, bringing chilly weather, rain 

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Bundled up chilangos
The National Meteorological Service is advising residents of Mexico to prepare for low temperatures and rain as the three-day weekend approaches, as cold front No. 14 makes itself felt Thursday night. (Rogelio Morales/Cuartoscuro.com)

Mexicans are being advised to dress in layers as the season’s 14th cold front will sweep across the country from the northwest beginning Thursday night. 

The National Meteorological Service (SMN) reported that heavy rains and cold conditions will persist, especially in the north and central regions, as the season’s 14th cold front moves in just as cold front No. 13 has begun to weaken.

 

Although the mass of arctic air accompanying cold front No. 13 diminished throughout Wednesday, the resulting gradual rise in daytime temperatures in the north, east and center of the country will end abruptly as the new cold front makes itself felt.

The new frontal system, combined with a polar trough, upper-level cyclonic circulation and the polar and subtropical jet streams, will extend its effects during Friday and Saturday, most notably in the north of the country 

Mountainous areas of the northern states of Chihuahua and Durango will experience a significant chill, with temperatures ​​between -10 and -5 degrees Celsius. Authorities are advising residents of those and other high-altitude areas to drive with caution, as fog or ice may form during the early morning.

Much of the rest of the country can expect a lesser but still significant chill. Frost and temperatures between -5 and 0 degrees Celsius will occur in Baja California, Sonora, Coahuila, Nuevo León, San Luis Potosí, Zacatecas, Aguascalientes, Guanajuato, Michoacán, México state, Hidalgo, Tlaxcala, Puebla and Veracruz.

Minimum temperatures will range between 0 and 5 degrees Celsius in high-altitude areas of Tamaulipas, Jalisco, Querétaro, Mexico City, Morelos and Oaxaca.

Mexico City authorities issued an advisory urging everyone to stay alert to the Early Warning System because “temperatures can change suddenly during the day and in the early morning.” 

Authorities also warned of the risk of respiratory illnesses from exposure to sudden temperature changes. They also recommend keeping spaces well-ventilated if using braziers or heaters to prevent carbon monoxide poisoning.

The SMN warned that heavy rainfall accompanying the new cold front could cause landslides, rising rivers and streams, and flooding in low-lying areas of the southeast. A low-pressure trough and the influx of moisture could generate torrential rains in southern Quintana Roo, as well as very heavy rains in Campeche and showers with lightning in Yucatán, which could cause flooding and waterlogging.

Strong gusts of wind and isolated rains are also predicted for the Baja California Peninsula, while farther south the Isthmus of Tehuantepec could see gusts in excess of 65 kilometers per hour. 

The SMN also forecasts showers in parts of Veracruz, México state, Oaxaca, Chiapas, Tabasco, Campeche and Yucatán. Isolated showers are expected in Michoacán, Guerrero, Morelos, Puebla and Mexico City, with accumulations of less than 5 millimeters.

Waves of between 2 and 3 meters (6.5 and 9.8 feet) in height are expected off the coasts of Yucatán and Quintana Roo, prompting the SMN to issue a recommendation that small vessels take extreme precautions.

The effects of cold front No. 14 are expected to lessen and dissipate on Monday. But meteorological authorities anticipate that cold and rainy days will continue in several regions through the end of November and throughout December.

With reports from El Universal, Reporte Indigo and Meteored

Remains of 16 people found in clandestine cemetery near Cancún

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A National Guard truck drives past a sign reading Rancho Sac Lol
National Guard troops keep watch at Rancho Sac Lol, the property where the graves were found, 40 kilometers southwest of Cancún. (Cuartoscuro)

Authorities in the state of Quintana Roo announced on Monday that the remains of 16 people had been found on a property around 40 kilometers southwest of Cancún.

State Attorney General Raciel López Salazar told a press conference that “a property used as a clandestine cemetery” was discovered in the town of Leona Vicario, located in the municipality of Puerto Morelos.

She said that “15 points of forensic interest” were located on the property and that 10 of them had been examined and turned up the skeletal remains of 16 people.

López said that the remains were covered with cement and quicklime.

She noted that forensic experts have been working at the property, called Rancho Sac-Lol, since late last week.

The attorney general said that the skeletal remains were taken to a government morgue for testing aimed at determining the identity of the people they correspond to, the cause of death and how long the remains had been buried on the property.

She said that the identification process could take several weeks given the quantity of remains and their state of decomposition. López noted that experts in genetics, anthropology and odontology would assist the identification process.

She also said that authorities are conducting an investigation aimed at determining who used the property in Leona Vicario as a clandestine cemetery.

Mexico has over 130,000 people reported missing, many in the last two decades. Bodies found at hidden burial sites are often attributed to organized crime, though corruption and government dysfunction have also contributed to the crisis.

Such cemeteries are commonly found in various states of Mexico, but not Quintana Roo, a Caribbean coast state best known as a tourism destination.

However, various crime groups operate in Quintana Roo, engaging in illicit activities including drug trafficking and extortion. The state recorded 253 homicides in the first 10 months of 2025, ranking 19th out of Mexico’s 32 federal entities for murders.

With reports from Milenio and AP

Nvidia denies plans to build US $1B data center in Nuevo León

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The governor announced Nvidia's supposed investment at the business forum Mexico IA+ on Wednesday. (Screenshot)

Hours after Nuevo León’s Governor Samuel García announced that Nvidia had plans to invest US $1 billion to build a data center in the state, the U.S. chip company publicly denied those plans.

“Nvidia does not have financial investment plans in Nuevo Leon,” the company said in a statement to Reuters. “The company’s support for digital transformation and technological progress in Latin America is based exclusively on cooperation initiatives, research and talent development.”

A X post by Nuevo León Governor Samuel García announcing a US $1 billion investment by Nvidia in his state
A post by the governor on the social platform X announcing Nvidia’s supposed investment plans had not been taken down as of Thursday morning, despite the U.S. chip manufacturer’s denial. (X)

García first announced Nvidia’s supposed investment during an Artificial Intelligence event dubbed Mexico IA+ Accelerated Investment, organized by the Ministry of Economy. The announcement was posted on García’s official X account, in which he appears alongside Nvidia executives.

“Nvidia, the leading software and Artificial Intelligence company, is coming to our state with a $1 billion investment,” García said in the video, as he explained that the investment would fund Mexico’s first Green Data Center for Artificial Intelligence.

The US $1 billion investment is happening, but not through Nvidia

Following Nvidia’s denial, the communication team of the Nuevo León government clarified García’s announcement. They confirmed that the US $1 billion investment will indeed come to Nuevo León, but will be done through Mexican AI company Cipre Holdings, a company that plans to build a green hydrogen data center in the state.

Representatives from Cipre Holding explained to newspaper El Economista that while the investment is certain, “Nvidia will not invest. It’s us, private companies, who will invest.”

“What Nvidia provides is technology and infrastructure that we decided to acquire in order to implement and develop their solutions for our companies, governments and all those who require this type of artificial intelligence infrastructure,” Jessica Peña, director of Mexico IA+ Accelerated Investment and representative of Cipre Holding said.

Although the data center will be located in Nuevo León, Peña explained it will provide services to users both in Mexico  and abroad.

While Nuevo León does frequently attract major tech and nearshoring investments, this is not the first major announcement by García that didn’t go as expected.

In March 2023, the Nuevo León governor announced that Tesla would invest more than US $4 billion to build a “giga-factory” in the municipality of Santa Catarina near Monterrey.

Tesla CEO Elon Musk said in October of that same year, that he was not ready to “go full tilt” on construction given global economic conditions. At the time, he said the first phase of construction would begin in early 2024.

However, the project is still on hold.

With reports from El País and El Economista

Made in Mexico: ‘El Indio’ Fernández

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Emilio Fernández
Emilio "El Indio" Fernández is an iconic figure in the history of Mexican Cinema. (Diccionario de Directores del Cine Mexicano)

Almost everyone has a memory of film, a particular image or moment that, without
realizing it, becomes a part of who they are. Mine dates back to a time when television
had overshadowed the cinema, but weekend programming was a ritual of discovery:
American films, European art pictures at night, and on channels 2 and 9, Mexico’s
golden age classics. Sometimes, there would be advertisements for special screenings
of Emilio Fernández’s films — stories that would come to define Mexican cinema and its
soul.

The cultural power of film is unmatched. Across disciplines — psychology, art,
philosophy — scholars have delved into its influence, seeking to understand how cinema
shapes our collective identity. Why does this art form, born in darkness, become so
deeply embedded in the fabric of a nation? Film’s narratives, its framing, its
pacing … these are mirrors of our spirit, our history and our dreams.

Emilio "El Indio" Fernández
Emilio “El Indio” Fernández acted in nearly 80 films and directed more than 40. (Wikimedia Commons/Eduardo Ruiz Mondragón)

The power of film

In Mexico, during the early 1930s, as the nation was forging its modern identity, the
government saw cinema as a vital tool. It was more than entertainment; it was a means
to craft a narrative, to build symbols that could unify a diverse society. State funding
flowed into the industry, transforming film into cultural diplomacy, a way to project
Mexico’s image beyond its borders.

Meanwhile, the upheavals of World Wars I and II caused a halt in European and
American film production. This created space, a vacuum that Mexico eagerly filled.
Talent, ideas and support began to flow into the country, making it a fertile ground for
cinematic innovation.

Among the giants of that era, Emilio “El Indio” Fernández looms larger than most. His impact on Mexican culture is profound, shaping not only our cinema but our
understanding of ourselves: our stories, our struggles, our pride.

The architect of Mexican identity

Fernández’s life reads like a myth. Born on March 26, 1904, in Coahuila, he was the son
of a revolutionary general in Pancho Villa’s army and a Kikapú woman. His nickname,
“El Indio” was a badge of identity he wore proudly, embodying his roots.
In several interviews, he told the story of his life as if it were out of his movies. He
recalled as a child riding horses, carrying guns, and living on the fringes of the
revolution, an upbringing that would come to define his screen persona: a rugged,
resilient archetype of Mexico’s essence. His leadership talent was apparent
early, so much so that Felipe Ángeles, a renowned revolutionary figure, recommended
him for military training. He confessed he didn’t want to compete with his father, and he
chose a different battlefield: cinema.

Made in Mexico: El 'Indio' Fernández

After a stint in prison at nineteen, Fernández escaped, and in 1928, he arrived in
Chicago. There, he was rumored to have met Rudolph Valentino, though the dates tell a different story. Valentino, dying in New York, supposedly left instructions for Fernández to carry Mexico’s image beyond borders. His wanderings took him to California, where he
stayed for nine years. He connected with other Mexicans, including a former
presidential candidate who convinced Fernández that cinema’s cultural reach was more
potent than any weapon or war.

His moment came when he watched Sergei Eisenstein’s unfinished masterpiece, “¡Qué Viva México!” The images — raw, revolutionary, poetic — set him on a new path. He
decided then to learn the craft of filmmaking, to return home and tell Mexico’s story
through film. During those years, he performed at dance clubs where Xavier Cugat
played, worked as an extra. He learned by watching. With a borrowed camera, he
experimented, practiced and dared.

The Golden Age of Mexican Cinema 

Emilio "El Indio" Fernández with Marilyn Monroe
Two icons of world cinema, Emilio Fernández and Marilyn Monroe. (Public Domain)

In 1933, Fernández returned to Mexico and directed his debut, “La Isla de la Pasión.” His
breakthrough came with “Janitzio” (1934), where he starred, danced and wrote. But it
was “María Candelaria” (1943), which would forever be etched into the cultural fabric of
Mexico. That cemented his legacy. Working alongside legendary talents — cinematographer Gabriel Figueroa, screenwriter Mauricio Magdaleno and actors like Pedro Armendáriz, Dolores del Río and María Félix — Fernández crafted a new cinematic language.

This was the Golden Age of Mexican cinema and between 1936 and 1956, this art
became a mirror for the nation’s soul. World War II’s global upheaval granted Mexico
space to grow its cultural voice. While the world was preoccupied with conflict, Mexico
was rebuilding and modernizing. Hollywood’s resources dried up during wartime, but
Mexican cinema received support both from the government and international
allies, further fueling its rise as a cultural force.

Films from this period reflected the complex realities of Mexican life: its landscapes, its
contradictions, its aspirations. They borrowed Hollywood’s narrative structures but
placed them within our unique contexts — Mexican towns, Indigenous stories,
revolutionary ideals. Artistic influences from José Guadalupe Posada, Dr. Atl and the
muralists fused to create an unmistakable visual style, epitomized by Gabriel Figueroa’s
masterful use of chiaroscuro. His contrast of shadow and light shaped not only Mexican
cinema but also a visual language that remains iconic today. These images of agave fields,
cloud-laden skies and the archetypal Mexican figure are etched into the collective
consciousness. They define the aesthetic of an era and continue to inspire.

Notable films

Among Fernández’s most influential works, “Flor Silvestre” (1943) stands out as a lyrical reflection of Mexican life and song. The film, which he directed, tells the love story of José Luis, the son of a hacendado, and Esperanza, a humble campesina. It blends the nostalgic clichés of the Porfiriato with the stark realities of the post-revolution period, and exposes injustices masked as national progress.

“María Candelaria” (1943), awarded at Cannes in 1946, is a masterpiece that explores
themes of discrimination and cultural marginalization. Set in Xochimilco in 1909, it
follows a couple caught in the troubling gap between revolutionary ideals and the
persistent erasure of indigenous identity, and is a poignant reminder of Mexico’s ongoing
struggle to reconcile its past and future.

“Enamorada” (1946), perhaps María Félix’s most iconic film with Pedro Armendáriz, is a
romantic drama set amidst the upheaval of war and revolution. Félix’s character, the
daughter of a hacendado, falls in love with a Zapatista general, challenging traditional
notions of masculinity and class. The film, rich in humor and layered with political
commentary, questions the very fabric of Mexican identity.

Emilio "El Indio" Fernández
Emilio “El Indio” Fernández, framing a shot for one of his films. (Diccionario de Directores del Cine Mexicano)

“La Perla” (1947), adapted from Steinbeck’s novel, narrates a tragic story of hope and
despair in La Paz. It became the first Spanish-language film to win a Golden Globe,
signifying Mexico’s expanding cultural reach.

“Río Escondido” (1947) tells of a rural teacher dispatched by the president to a small
town. When she discovers that the local community is controlled by a tyrannical
cacique, she confronts him, symbolizing resistance against oppression. The film
critically examines abuses against the vulnerable.

Impact on Mexican culture

As the novelist Carlos Fuentes observed, the revolutionary upheaval that defined early
20th-century Mexico transcended political and social boundaries — it sparked a profound
cultural renaissance. The revolution not only unified a nation fractured by regionalism
but also forged a shared idea of what it meant to be Mexican. Emilio “El Indio”
Fernández portrayed on screen ideas of pride, courage, resilience and an unwavering
pursuit of progress.

Actors like Pedro Armendáriz, María Félix and Dolores del Río became more than
stars. They became symbols of a modern Mexico — embodying strength, independence
and a fierce sense of identity. Their characters often rode across vast landscapes on
horseback. Women were fierce and determined, yet still bound by traditional structures.
“El Indio” Fernández created a unique cinematic language that resonated deeply with
Mexican audiences. This was art born of a nation seeking to define itself anew.
However, it was not without contradictions. The films often romanticized Indigenous culture — sometimes reinforcing stereotypes, sometimes attempting to elevate
them — thus revealing the complex, sometimes problematic, relationship Mexico has
with its Indigenous heritage.

Legacy

Emilio “El Indio” Fernández Fernández understood the profound role of cinema as a
vessel of identity. His films are more than stories — they are reflections of Mexico’s
history, its hopes, its wounds. By watching his films, you will have a glimpse to the
deeper truths of a nation that was in transformation.

He, alongside Gabriel Figueroa, created the visual landscape and the narrative of
what they perceived as the “real” Mexico. A vision that continues to inspire
photographers, filmmakers and artists; one that showcases Mexico as the land of the
brave, proud and courageous people.

Maria Meléndez is an influencer with half a degree in journalism

Is Mexico’s agricultural sector experiencing a water crisis?

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A close-up shot shows a person adjusting an irrigation line in a field to reduce agricultural water waste
Agriculture is both the biggest user of water in Mexico, and one of the first sectors to suffer when water is scarce. (Shutterstock)

Mexico’s agriculture sector accounts for the vast majority of the country’s water consumption, yet over half of it is lost due to inefficiencies in water use. Overconsumption, inefficient irrigation practices, aquifer overexploitation and the impacts of climate change drive the growing water crisis. Sustainable water management is now critical to securing the country’s food and water future.

Water availability and distribution: The startling statistics

Agriculture consumes roughly 76% of Mexico’s water resources, yet much of this is lost due to poor infrastructure and outdated irrigation practices.

Water scarcity Mexico
Mexico is addressing water scarcity by promoting modern, more efficient irrigation systems to reduce agricultural water waste. (Government of Mexico)

Mexico uses 461,640 million cubic meters of renewable water per year. However, water availability is unevenly distributed. The north, central and northwest areas of the country — where most people and industries are concentrated — have far less renewable water than the southeast. This disparity presents challenges for agricultural planning and equitable access to water.

Agriculture relies on a combination of surface water (64%) and groundwater (36%). Irrigation infrastructure includes:

  • 6,500 storage dams and reservoirs
  • 6.7 million hectares of irrigated farmland
  • 2.8 million hectares of technified rain-fed agriculture

Despite this, studies estimate 40% to 65% of agricultural water is lost due to leaks, poor irrigation and evaporation.

Export agriculture and the water footprint

The sheer volume of water consumed by Mexican agriculture is driven by powerful economic forces, particularly the demand for high-value export crops in the United States and global markets. 

A significant amount of water is used to irrigate highly water-intensive crops tied to the boom in fresh produce exports. Avocados, blueberries, and asparagus — all of which require a lot of water — generate substantial revenue but place immense stress on local water reserves, particularly in high-stress states like Jalisco and Michoacán.

Livestock also drains the water supply. Growing alfalfa and other fodder crops to support Mexico’s massive cattle industry consumes vast amounts of water, often relying entirely on depleted groundwater sources.

Cows on a farm staring at the camera
Livestock, like agriculture in Mexico, uses a lot of water. (Gobierno de México)

This dynamic creates an ethical and resource conflict: national water reserves are leveraged to grow profitable goods for international consumption, while local smallholder farmers and domestic food security are increasingly marginalized due to declining water tables.

Overexploitation and climate change: A perfect storm

The current dire situation is a combination of high water consumption, high waste and environmental limits, particularly in the northern and central arid and semi-arid regions.

Overexploitation of aquifers

Mexico relies heavily on groundwater for irrigation, with estimates indicating that about one-third of its irrigated land is supplied by aquifers. Of the country’s 653 officially recognised aquifers, many are being extracted unsustainably, and as of 2023, 115 are classified as overexploited, leading to declining water tables, higher pumping costs, salinization and seawater intrusion. Overexploitation is particularly severe in the arid northern and central regions, where groundwater is essential for irrigation during droughts. 

Climate pressures

Climate change is intensifying the water scarcity in agriculture. Projections indicate:

  • Temperature increases of 0.5 degrees Celsius to 5 degrees Celsius across the country by the end of the century.
  • Rainfall declines of up to 20.3% in some regions.
  • More frequent and severe droughts, particularly in arid and semi-arid areas.

These shifts could reduce yields of key crops such as corn and sorghum by more than 40% in rain-fed regions under high-emissions scenarios.

Water and social conflict: The struggle for equity

Corn farmer in Mexico
Mexico’s corn farmers are expected to produce less corn this year by current Agriculture Ministry estimates. (Dreamstime)

The water crisis is bigger than it seems; it has become a deep-seated social conflict over who gets access to a dwindling resource.

There is a disproportionate impact on smallholders. Overexploitation primarily impacts small rural producers who rely on shallow wells and cannot afford the high pumping costs or technological investments necessary to access deeper water or implement drip irrigation. When water tables drop, these vulnerable farmers are often the first to lose their livelihoods, accelerating rural poverty and migration.

To make this worse, government programs aimed at recovering water often reallocate it to urban centers, generating resistance from rural communities, who frequently feel left out of the picture.

Government initiatives for sustainable water management

Recognizing the gravity of the situation, the Mexican government has initiated several programs to address agricultural water inefficiency.

National Irrigation Modernization Program

The National Irrigation Modernization Program aims to technologically improve over 200,000 hectares of irrigated land and assist 225,000 agricultural producers. Its goals include:

  • Lining and piping canals, installing flow meters and automating gates to recover up to 40% of lost water.
  • Adoption of drip, micro-sprinkler and sprinkler systems, which can reduce water use by up to 60% compared with flood irrigation
  • Minimizing runoff and maximizing irrigation efficiency.

The recovered water is reallocated to urban centers and aquifer recharge, especially targeting drought-prone areas like Sinaloa, Hidalgo and Coahuila-Durango. 

Proposed water law reform

President Claudia Sheinbaum in Durango, ceremonially shoveling a pile of debris as part of a tour of a new water treatment plant coming online near Durango city, Mexico, in March.
Government water reform in places like Durango city, which suffers from water shortages and contaminated water due to overexploitation of aquifers, is important. (Presidencia/Cuartoscuro)

The government’s General Water Law reform emphasises sustainable management, state oversight and equitable access. Key provisions include:

  • Farmers retain existing water rights.
  • Incentives for efficient irrigation technologies (PEUA program).
  • Prevention of illegal water trading and hoarding.
  • Promotion of water reuse and aquifer recharge.
  • Creation of a National Water Registry and Reserve Fund.
  • Penalties for misuse while protecting compliant users.
  • Strategic planning for short-, medium-, and long-term water allocation.

Enforcement barriers to change

Despite efforts to modernize, water waste in Mexico remains a significant problem due to political and structural barriers. The government heavily subsidizes electricity for pumping groundwater, making it cheap for large farmers and removing any incentive to save water or use efficient technology. Most of these benefits go to a small group of wealthy farmers. Powerful farming lobbies block reforms, like water meters and fair pricing.

CONAGUA also struggles to enforce the rules due to a lack of funding and political support. As a result, many break the law, illegal wells are common, and water is diverted without permission, making conservation efforts largely ineffective.

On-Farm strategies for water security

Beyond federal change, sustainable water management requires integrated, farm-level approaches.

Technological solutions

Digital technologies are transforming water management. Earth Observation (EO) data from satellites enables the monitoring of drought and water allocation in irrigation districts. Data-driven systems, such as CARLOTA, utilise real-time analytics to help farmers reduce their water usage by approximately 20%.

Agronomic innovations

More regenerative farming in Mexico is needed. (Rancho Cacachilas)

Conservation and regenerative farming are set to come to the fore. No-till farming, drought-tolerant crops, and adjusted planting calendars reduce water demand and improve soil health. Wastewater upcycling will also allow aquatic plants, such as Lemna, to treat agricultural wastewater and recover nutrients for reuse.

This wastewater recovery will be supplemented by rainwater harvesting. Systems that capture and purifiy local rainfall to supplement irrigation and reduce pressure on centralised water systems.

Collaboration: Everyone’s role in water security

Sustainable water management requires shared responsibility among government, farmers and industry. Key strategies include:

  • Volumetric measurement: Mandatory metering to prevent over-extraction, especially from aquifers.
  • Empowering user associations: Strengthening irrigation districts to manage infrastructure and enforce sustainable practices.
  • Integrated policy: Coordinating agricultural, environmental and social priorities under a unified framework.
  • Capacity building: Training farmers and local technicians in efficient irrigation and climate-resilient practices.

Mexico’s water challenge sits at the crossroads of climate change, agricultural productivity and social equity. Long-term water security will depend on sustained commitment to efficiency, innovation and integrated governance that ensures every drop counts — for farms, urban areas and the environment alike.

Irena Vélez is a journalist at Wikifarmer.com, based in Seville, Spain. She holds a Bachelor’s in Journalism Honours from Carleton University in Ottawa, Canada, and has a background in agricultural reporting. She writes research-based articles on sustainable farming, crop management and rural entrepreneurship, helping make agricultural knowledge accessible to farmers worldwide.

For readers looking to dive deeper into the protected agriculture sector, Wikifarmer offers expert insights, market data, and crop trends. Wikifarmer empowers farmers, agribusiness professionals, and industry observers through four key pillars: the Wikifarmer Marketplace, connecting producers with buyers around the world; the Wikifarmer Library, a free knowledge hub with thousands of expert-authored articles on crops, technologies and best practices; the Wikifarmer Academy, offering online courses with certifications to enhance agricultural skills; and Wikifarmer Price Insights, providing real-time market intelligence on key commodities. By combining practical expertise with up-to-date data, Wikifarmer helps stakeholders navigate the complexities of modern agriculture, making it an essential resource for anyone interested in Mexico’s booming greenhouse and horticulture industry.

A ‘sneaky’ service that may be costing you a bundle when shopping in Mexico

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Paying with credit card in Mexcio
Paying with a credit card in Mexico may cost you extra in hidden fees. (Payarc)

Whether you’re a long-term expat or a tourist visiting Mexico on vacation, a dubious service the financial industry refers to as “dynamic currency conversion” (DCC for short) can cost you a bundle in excess fees when shopping with a foreign credit card.

Don’t know what I’m referring to? Let me explain.

DCC in Mexico
Dynamic currency version will definitely not get you a better rate … at least if you pay in dollars.

How dynamic currency conversion works

When you’re shopping or dining in Mexico and use a foreign credit card to pay, the merchant’s payment processor (often referred to as a terminal) identifies the card’s country of origin based on the issuing bank. In some cases, this triggers a choice of two payment options.

In this situation, a salesperson may ask if you prefer to pay in U.S. dollars (or whatever your home currency is) instead of Mexican pesos. While the question may seem harmless, in truth, it’s anything but.

When a consumer agrees to pay in their home currency instead of the local one, the purchase price displays on the terminal’s screen, with the merchant’s exchange rate and any fees shown beneath it, in smaller print. If the customer declines, the purchase is made in Mexican pesos, and the cardholder’s bank does the currency conversion at its own rate.

Transacting in your home currency, or accepting DCC, invariably means paying a higher price due to the merchant’s bigger exchange rate markups. 

How much more will you pay with DCC? It varies by merchant since they’re the ones who set the exchange rate for customers who accept DCC. But the bottom line is that DCC usually works out badly for the consumer.

The subtext of this practice is that merchants are counting on buyers with foreign cards being inexperienced and intimidated to transact in Mexican pesos. When they find a customer that fits the bill, they take advantage.

Mexico credit card
DCC turns out better for those paying in pesos, automatic if you’re carrying a Mexican credit card. (PYMENTS)

Now, I’m not blaming front-line staff for ripping off customers. Most store clerks and waiters probably have no idea how a decision like this financially impacts the consumer. But their boss certainly does!

How to protect yourself from DCC

Whenever you use a foreign credit card in Mexico, you must be alert to this practice. If a restaurant, hotel, shop or other business establishment asks if you prefer to pay in dollars (or another foreign currency) instead of pesos, politely but firmly refuse with a “no, gracias.”  

Or, do as I do and proactively tell the merchant that you want to pay in pesos when handing them your credit card. This preempts the question.

Sometimes, a merchant may hand you the terminal with both the peso and dollar prices displayed side by side. Always tap the peso price.

In expensive restaurants where there are lots of foreign diners, you may be handed a bill with two totals displayed, one in pesos and the other in U.S. dollars. Circle the amount in Mexican pesos before signing the bill.

While no merchant is obligated to offer the customer an uncompetitive exchange rate on DCC transactions, they almost all do. It seems they can’t help themselves – reputations be damned.

Mercado Pago
Mercado Pago terminals aren’t free for those paying DCC in dollars, as they’re getting dinged on the conversion rate. (Mercado Pago)

Whenever I’m out buying things, I pay particularly close attention to Mercado Pago terminals, because I know their software is built to offer dynamic currency conversion.

How to fight back when you’ve been DCC’d

I fell prey to this practice last summer at a gourmet food store I visit regularly in Guadalajara. I’d been chatting with my spouse during checkout, and the clerk proceeded to charge my credit card in dollars without asking me first. 

It wasn’t clear that I’d been duped until a few hours later, when I pulled the receipt out of my wallet at home.

By processing my payment in dollars, the sale was roughly US $16 higher than it would have been if I’d paid in pesos. This was thanks to the merchant’s horrible exchange rate, which equated to an 8% markup! Sheesh. 

According to Visa and Mastercard policies, consumers have the right to decline dynamic currency conversion when it’s offered. Merchants cannot default the customer to a DCC transaction without their consent.

Disputing purchases with your credit card issuer

If you discover a Mexican merchant has done exactly that — i.e., ringing up your purchase in dollars (or another foreign currency) without asking your preference — ask them to reverse the charge and ring it up again in pesos. If they refuse, then mark the receipt “local currency not offered” and inform the clerk that you will be disputing the charges with your credit card company.

La Europea receipt Mexico
Yes, you can dispute DCC charges, but only if you were charged in dollars without your permission. (Live Well Mexico)

Similarly, if you were pressured to accept payment in a foreign currency instead of the local one, dispute the charge with your card issuer. Be sure to provide the original receipt showing the merchant’s name, location, contact information and the amount charged in dollars.

Your bank will initiate an investigation and, in the best outcome, refund you the excessive fees and/or charge them back to the merchant who ripped you off. I successfully challenged the 8% overcharge mentioned above with Capital One, my credit card issuer, and was reimbursed in a few weeks. 

But it’s not always so easy. With some companies, dispute resolutions can drag on for months. Nevertheless, I think it’s worth holding merchants accountable when they rip off buyers paying with foreign cards.

Now, if you were offered the choice of paying in your home or local currency and chose your home currency, there’s no basis to dispute the excess charges after the fact. In this case, chalk it up to “expat education” and pay closer attention the next time you pull out a foreign credit card in Mexico.

Why DCC is becoming more common in Mexico

Mexico has long been a cash-oriented economy. According to the National Survey of Financial Inclusion (ENIF) released in March by the Mexican government, cash was used by 85% of Mexicans when purchasing lower ticket items in 2024. Meaning, those that cost less than 500 pesos.

But things are starting to change thanks to Latin America’s fast-growing financial technology sector, driven by the likes of Mercado Pago, Adyen and others. New products aimed at increasing digital payments in Mexico are rolling out at a rapid clip.

Credit card transaction Mexico
DCC is becoming more common in Mexico, so be cognizant of this fact. (Live Well Mexico)

In its second-quarter letter to shareholders, Mercado Libre (the biggest e-commerce platform in Mexico) highlighted the release of dynamic currency conversion for its Mexican business customers using the Mercado Pago payments system. 

What this means for anyone shopping here with foreign credit cards is that DCC will be even more prevalent going forward, especially in major cities and tourist destinations.

After discovering that life in Mexico was a lot more fun than working in corporate America, Dawn Stoner moved to Guadalajara in 2022, where she lives with her husband, two cats and Tapatío rescue dog. Her blog livewellmexico.com helps expats live their best life south of the border.

Sheinbaum celebrates record formal sector employment: Wednesday’s mañanera recapped

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Sheinbaum Nov. 12, 2025
"... We've experienced a complex year because of the [U.S.] tariffs, due to the international situation, but even so, the peso today is at ... 18.29 [to the US dollar] ... and there is job creation," Sheinbaum said on Wednesday. (Andrea Murcia/Cuartoscuro)

World Cup-related tourism, job creation and the government’s security strategy were among the topics President Claudia Sheinbaum spoke about at her Wednesday morning press conference.

Here is a recap of the president’s Nov. 12 mañanera.

Government-endorsed ‘tourist routes’ to help World Cup visitors discover Mexico

A reporter asked the president whether the government has any plan to encourage 2026 FIFA World Cup tourists to do activities in Mexico beyond watching matches at the stadiums in Mexico City, Guadalajara and Monterrey.

He specifically cited visiting the Teotihuacán archaeological site in México state and eating barbacoa in Hidalgo as examples of activities the government could promote to foreigners who come to Mexico for the World Cup next June and July.

Sheinbaum responded that the government has developed “tourist routes linked to the arrival of tourists for the World Cup.”

The different routes will be presented next week or the week after, she said.

Sheinbaum didn’t provide a great deal of information about the World Cup “tourist routes,” but confirmed that a trip on the Maya Train railroad — which runs through the states of Tabasco, Campeche, Yucatán, Quintana Roo and Chiapas — is part of at least one of them.

She also said that Pueblos Mágicos (Magical Towns) are included on the routes.

“There are several activities that we’re going to present,” Sheinbaum said, referring to the tourist routes and other World Cup-related initiatives.

Did Mexico grant FIFA a full tax break for the World Cup?

During her morning press conference on Monday, the president said that 5.5 million football fans will come to Mexico for the World Cup, a 48-team event in which matches will also be played in the United States and Canada.

“[It will be] a very special time with a very significant economic spillover,” she said.

Number of workers in formal sector jobs reaches record high 

Referring to data published on Monday by the Mexican Social Security Institute (IMSS), Sheinbaum noted that the number of people in formal sector jobs increased by 217,491 in October.

She also noted that the total number of people in IMSS-affiliated formal sector jobs increased to a record high of just under 22.79 million at the end of October.

“It’s the highest figure ever recorded,” Sheinbaum said.

“… We’ve experienced a complex year because of the [U.S.] tariffs, due to the international situation, but even so, the peso today is at … 18.29 [to the US dollar] … and there is job creation. It means we’re doing well,” she said.

Just under 551,000 IMSS-affiliated formal sector jobs have been created so far this year, a figure that lags the pace at which such jobs were added in the first 10 months of 2023 and 2024.

Still, the creation of more than half a million formal sector jobs during a period in which the economy was barely growing, and even contracting in certain periods, is a net positive.

The national unemployment rate, at 3%, remains low, although it has trended up this year.

Meanwhile, the percentage of workers employed in Mexico’s vast informal sector remains stubbornly high at just under 55% in September, according to the national statistics agency INEGI.

The National Guard is a ‘great institution,’ says Sheinbaum

A reporter asked the president her opinion about an article published by The Economist on Monday under the headline “Mexico has become a less deadly place under Claudia Sheinbaum.”

The Economist acknowledges that murders have declined since Sheinbaum took office, but also states that “there is still an enormous amount to do in a country deeply in hock to gangsters.”

National Defense Minister Ricardo Trevilla Trejo addressing members of Mexico's National Guard.
National Defense Minister Ricardo Trevilla Trejo addressing members of Mexico’s National Guard. (@OHarfuch/X)

Instead of giving a direct response to the reporter’s question, Sheinbaum took the opportunity to speak about her government’s approach to public security.

“The National Guard is an institution that is being strengthened,” she said, referencing one of the four core tenets of the government’s security strategy.

“It’s different from what the Federal Police was. It’s a new institution formed by president López Obrador, and which has to be strengthened. It’s a great institution, it is highly regarded by the people of Mexico, but it has to continue improving,” Sheinbaum said.

The president also spoke about her government’s commitment to improving intelligence and investigative practices, addressing the root causes of crime, reducing impunity, and strengthening public institutions.

Near the end of its article, The Economist noted that “on November 3rd NBC News reported that the United States is drawing up plans for operations inside Mexico to target gang leaders.”

“Such sabre-rattling creates tensions, but may also give Ms Sheinbaum cover to be bold,” the publication wrote, adding:

“No amount of boldness will rebuild Mexico’s hollowed-out security institutions and break the gangs’ grip during the single six-year term that the constitution affords Ms Sheinbaum. More complete success will be for her successor.”

That successor, The Economist suggested, could be current Federal Security Minister Omar García Harfuch.

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

Painting stolen from Teotihuacán church returns a quarter of a century later

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Stolen painting returned
Residents of the town of Mazapa, located in the area surrounding the Teotihuacán pyramids, celebrated as a long-lost 18th-century painting of Saint Francis of Assisi returned to its place in their church. (Art Loss Registry)

A treasured 18th-century painting of Saint Francis of Assisi — taken in a nighttime heist from a church in México state nearly 25 years ago — has returned after years of investigation and faith-fueled waiting.

Dated Dec. 3, 1747, the oil painting was stolen from the Church of San Francisco Mazapa on Jan. 6, 2001. Eighteen works disappeared that night, but only this one has resurfaced. 

The parish is in a town of 3,300 adjacent to the Teotihuacán archaeological zone, a massive UNESCO World Heritage Site that includes the Pyramid of the Sun. It’s about an hour’s drive northwest of Mexico City.

The painting stands out for many reasons, including its large, church-display size of 159 centimeters high by 101 centimeters wide (5.2 feet by 3.3 feet) — making it comparable to some of the world’s most famous single-panel gallery paintings.

Its recovery began roughly eight years ago, when the alleged owner took it to the Morton Auctions house in Mexico City and left it on consignment, said historian David Collepardo.

The piece was flagged as stolen, and reported to Interpol, after a database check with the Art Loss Register, which tracks missing art and antiques worldwide.

“We stopped the auction process,” said Collepardo, Morton’s manager of antiques and books. “The Art Loss Register filed the corresponding reports with the prosecutor’s office.”

And why did a resolution take so long? Collepardo said it was due to legal red tape.

Published reports indicate that the person who brought the stolen painting to the auction house was never reprimanded or criminally charged. Authorities attempted to contact that person, but no response was received.

The outcome is typical of sacred art thefts in Mexico, where stolen items are sold or transferred through intermediaries, but legal actions focus on recovering the artwork rather than on prosecution.

The Mexican government has an international campaign to recover Mexican artifacts that uses the slogan #MiPatrimonioNoSeVende (“My Heritage is Not for Sale”).

The returned painting shows Saint Francis of Assisi holding a skull and a crucifix, stigmata on his hands and feet, and bears a dedication to Don Gregorio Juan, an Indigenous mayor of Mazapa.

Community members said its arrival restores a lost part of their identity.

“The recovery of our painting is of inexplicable significance to the faith of local people,” said parish priest Teodoro García Romero.

In a town of 3,300 people, approximately 1,000 joined in celebration on Sunday as the artwork was rehung in the parish. (Diócesis de Teotihuacán)

The Art Loss Register confirmed on Instagram that it worked pro bono with Morton Auctions to secure the return.

Photos posted show more than 1,000 residents celebrating on Sunday as the artwork was rehung in the parish.

“It’s a reminder that stolen cultural heritage, feared lost forever, can be returned to its rightful home,” the registry wrote.

With reports from El País, Milenio and ARTnews