President Claudia Sheinbaum marked the beginning of the third week of February with significant developments affecting Mexico’s international relations and economic landscape. Key announcements included new incentives for the film industry and deeper economic ties with Canada, while Mexico declined an invitation from the U.S. to join President Trump’s Board of Peace.
Film Industry Incentives and Canadian Relations
On Monday, Sheinbaum introduced a new film tax incentive, offering a 30% income tax credit for productions with spending in Mexico, capped at 40 million pesos per project. Celebrated Mexican actress Salma Hayek attended the announcement at the National Palace, emphasizing the initiative as a crucial boost for the country’s cinema.
Simultaneously, Mexico and Canada are taking steps to enhance their economic partnership. Economy Minister Marcelo Ebrard revealed plans for a joint economic action plan, set to be unveiled in 2026. This plan will focus on minerals, infrastructure, supply chains, and security cooperation.
- More than 370 Canadian business leaders visited Mexico City, Guadalajara, and Monterrey this week.
- Sheinbaum framed the partnership with Canada as strengthening existing ties rather than pivoting away from the U.S.
U.S. Relations and Trade Developments
During a press conference, Sheinbaum confirmed that Mexico would not join the Board of Peace created by Trump due to concerns over the exclusion of Palestine. The Mexican U.N. ambassador will serve only as an observer.
Trade relations remain a focal point as Sheinbaum expressed optimism regarding potential adjustments to the U.S.’s 50% steel and aluminum tariffs, which may ease trade pressures for Mexico. In contrast, the U.S. announced a $40 million investment in CIMMYT, aimed at developing agricultural technologies.
Security Measures and Drug Enforcement
In terms of law enforcement, significant strides have been made against fuel theft and drug trafficking. Authorities conducted a major operation in Veracruz, confiscating over 149 vehicles and 82,200 liters of stolen hydrocarbons. However, no arrests were reported in this incident.
Additionally, Sheinbaum revealed the pursuit of extradition for U.S. business individuals allegedly involved in fuel smuggling. On a related note, Mexico’s military intercepted a plane in Oaxaca carrying over half a tonne of cocaine, further underscoring the government’s ongoing battle against organized crime.
Recent Crime Statistics
- Guanajuato saw a 62% drop in homicides in January compared to the previous year.
- Intra-cartel violence has claimed over 2,800 lives in Sinaloa since September 2024.
Judicial Concerns and Investment Trends
Investment in Mexico faces challenges as a new Bloomberg report highlights an aversion among companies to engage with the judicial system due to an unpredictable legal environment. Concerns around inexperienced judges and politicized rulings have led to a decline in investment to pandemic-era levels, according to industry groups.
Despite these challenges, infrastructure projects continue, with new developments in Mexico’s airports and transportation links aiming to boost tourism and travel.
Tourism and Environmental Challenges
Mexico welcomed 47.8 million international tourists in 2025, representing a 6.1% increase from the previous year. However, environmental issues, including high air pollution levels and impending sargassum tides, pose significant challenges.
As the country prepares for the FIFA World Cup in 2026, authorities are also addressing the upcoming influx of tourists and the environmental concerns tied to the event.
Looking ahead, stakeholders will keep a close eye on electoral reforms, trade negotiations, and the ongoing battle against drug trafficking as pivotal themes in Mexico’s evolving narrative.
