AGP Executive Report

LNG Investment: Sempra’s ECA LNG Phase 1 has started producing LNG at its Ensenada, Mexico site (3.25 Mtpa train), with commercial operations expected in coming months—another step for Mexico’s role in North American gas exports. Pharma Logistics: Nadro opened a new $17M La Paz Regional Distribution Center in Baja California Sur, aiming to cut delivery times and boost coverage for nearly 1M residents. World Cup Economy: Mexico City and other host venues are gearing up for the 48-team, 104-match tournament starting June 11, while FIFA is also dealing with ticketing glitches that canceled free tickets for about 60 fans. Trade Uncertainty: Business leaders are pushing for “consistency and clarity” as USMCA renewal talks approach, warning that tariff-driven volatility can disrupt supply chains. Security & Geopolitics: The US move to label Brazilian criminal factions CV and PCC as terrorist groups took effect, raising concerns about tourism, investment, and cross-border economic fallout. Agriculture Risk: New World screwworm detections in Texas are triggering emergency animal-health rules and could ripple into beef markets.

US-Mexico Trade & Tariffs: The Trump administration proposed forced-labor tariffs on 60 economies, including Mexico, with duties of 10% for some partners and 12.5% for others—sparking pushback from trading partners and raising compliance headaches for firms. Mexico Cultural Protection: Mexico’s Culture Ministry moved to suspend a Colorado auction after INAH flagged 80 Mexican-origin archaeological pieces, citing national-heritage rules and restitution efforts. Border Security & Crime: Germany and Mexico agreed to deepen cooperation against organized crime and drug trafficking, while Mexico also reported uncovering a cross-border tunnel likely used for drug smuggling toward the Chicago area. Cattle & Food-Chain Risk: A confirmed New World screwworm case in Texas lifted cattle futures and renewed fears of wider spread from Mexico, with USDA saying containment actions are underway. Finance & Payments: Bank of America plans cross-border real-time payments next quarter via Swift or CashPro, aiming to speed high-volume international transfers. World Cup Business Pulse: Mexico City faces protests and construction disruptions ahead of the 2026 co-host kickoff, while World Cup-related travel and streaming demand keeps pressuring logistics and local services.

USMCA Watch: Iowa’s farmers and pork producers are urging the U.S., Mexico and Canada to renew USMCA quickly ahead of a July 1 review, warning tariff uncertainty is already shaking markets. Cross-Border Payments: Bank of America says it will add real-time cross-border payment capability for corporate clients via SWIFT messaging and CashPro, aiming to launch in the next quarter. World Cup Ticketing: FIFA says a checkout glitch left about 60 fans with “0 USD” tickets for group matches in Toronto, and it now wants them to pay to keep seats. Border & Security: Texas DPS recovered 20 more undocumented migrants hidden in a truck tractor near Laredo, charging the driver with smuggling. Agri Risk: USDA confirmed New World screwworm in a calf in Texas and says quarantine and movement controls are in place—an economic threat for ranchers. Health & Work: A Texas Rio Grande Valley report links Parkinson’s risk to pesticide exposure, spotlighting farmworker and nearby community health concerns. Mexico Business Angle: Mexico’s World Cup preparations also include infrastructure and crowd-management pressure across North American border systems.

USMCA & Tariffs: The Trump administration is rebuilding its tariff agenda after Supreme Court setbacks, proposing forced-labor duties that would hit Mexico and dozens of other partners (10% for some, 12.5% for others), adding new uncertainty for North American trade. Mexico-US Politics: Former President Andrés Manuel López Obrador renewed attacks on Washington over alleged interference, as tensions with the Sheinbaum government keep simmering. World Cup Business & Security: Motorola Solutions is pitching AI-powered security for Mexico’s World Cup fan journey, while FIFA also tightened stadium rules by banning refillable water bottles—pushing more sales to vendors inside venues. Agribusiness Risk: A New World screwworm case was confirmed in Texas, raising fears for cattle and beef prices; USDA says quarantine and sterile-fly releases are underway. Tech & Connectivity: Viva is expanding onboard connectivity in Mexico with SES multi-orbit satellite service for its Airbus fleet. Energy Finance: KB Kookmin Bank backed the Delfin floating LNG project in the Gulf of Mexico with a $2.67B financing package. Diplomacy: Germany’s foreign minister is visiting Mexico to co-chair a binational commission focused on economic cooperation.

US Tariff Push on Forced Labor: The U.S. proposes new Section 301 duties of 10%–12.5% on imports from 60 economies, including Mexico, after forced-labor enforcement gaps were flagged—setting up fresh cost pressure for North American supply chains. Mexico-US Friction at the Top: The U.S. is investigating two Mexican governors (Sonora’s Alfonso Durazo and Tamaulipas’ Américo Villarreal) and has stripped their U.S. visas, escalating tensions over alleged cartel links. USMCA/Trade Politics: Canada and Mexico are urging renewal/extension of the North American free-trade deal as the July review nears, while agriculture groups push lawmakers to keep the rules stable. World Cup Ticket Reality Check: Resale prices for some teams are falling sharply as kickoff nears, with fans complaining about being priced out—an issue for Mexico’s host-city tourism expectations. Logistics Cost Saver in Mexico: Betterware says it cut shipping costs by improving carton packing efficiency, reducing the number of boxes per order. Biosecurity Watch: USDA reports a New World screwworm detection in Mexico near the U.S. border, a potential threat to livestock and beef supply.

US Tariffs Over Forced Labor: The U.S. Trade Representative proposed new duties tied to forced-labor imports, with 10% levies for some partners including Mexico and 12.5% for others; the plan is open for public comment and could reshape North American trade costs. USMCA Renewal Push: Canada and Mexico are again urging the U.S. to extend the USMCA for longer, as trade talks and tariff threats add pressure on supply chains. Mexico Border Security & Trade Disruption: Separate reports highlight major US–Mexico tunnel busts and arrests, underscoring how cross-border crime and enforcement are colliding with logistics and business risk. Baja California Tourism Strategy: Mexico’s border state launched a new tourism campaign focused on sustainability and community-led experiences, aiming to boost arrivals and local economic benefits. World Cup Business Build-Up: FIFA’s pre-tournament spending race is already driving promotions across food and beverage brands, with Mexico positioned as a key host-market for visitor spending.

USMCA Renewal Push: Canada urged the U.S. and Mexico to renew the USMCA for 16 more years ahead of the July review, arguing the deal underpins North American integration. Auto Trade Pressure: The U.S. is floating tougher North American content rules for vehicles, with Canada saying it already meets the 50% threshold on average while Mexico lags—raising stakes for Mexico’s auto supply chains. Cross-Border Legal Risk: A Canadian investor said an ICSID tribunal dismissed its $408M NAFTA claim tied to a Mexico mine blockade, a reminder of how quickly trade disputes can shift. World Cup as a Business Engine: McDonald’s is rolling out World Cup meals and collectible cups across the U.S., Canada and Mexico, while analysts expect late match kickoffs to boost demand for lower- and no-alcohol options at venues. Mexico-Linked Growth & Investment: Volaris launched new Guadalajara service, and Dollar General expanded in Mexico alongside stronger Q1 results. Compliance Watch: Oceana joined a lawsuit over Gulf of Mexico endangered-species protections being lifted for offshore drilling, adding regulatory uncertainty for energy operators.

USMCA/Trade Talks: Mexico’s economy secretary says Mexico will push for removal of U.S. tariffs in the upcoming USMCA review, as bilateral negotiations keep shifting the North American business outlook. Cross-Border Enforcement: U.S. CBP’s “Operation Checkmate” arrested 52 people in Arizona, including 36 commercial truck drivers; 30 were Indian nationals, with others from Mexico, El Salvador and Russia, and all face deportation. Mexico Auto Market: April 2026 data shows Mexico sales at 118,859 units, down 9.7% month-on-month but up 8.6% year-on-year, with affordability pressures still shaping demand. Business Complexity: TMF Group’s index ranks Mexico among the world’s most complex places for foreign firms, citing unpredictable policy and compliance burdens. Healthcare Expansion: C2N Diagnostics and SouthGenetics expand access to Precivity blood tests for Alzheimer’s amyloid pathology, initially including Mexico. World Cup Economy: Ticket affordability concerns hit host regions unevenly, with Mexico’s Guadalajara-area incomes among the lowest while secondary-market prices rank among the priciest.

Mexico-U.S. Tensions: President Claudia Sheinbaum escalated rhetoric against the U.S., saying far-right U.S. sectors are coordinating with domestic groups to “attack” her government amid tariff and immigration disputes. USMCA/Trade Talks: Canada’s Dominic LeBlanc is heading to Washington as the U.S. and Mexico begin negotiations, while Canada waits for its CUSMA review—raising stakes for North American supply chains. Logistics & Industry: UPS announced a $50M investment to expand Mexico air freight, while Evonik partnered with Mexico’s University of Guanajuato to develop lower-toxicity biosurfactants for mining. Auto Supply Risk: A UAW strike at a Michigan axle plant supporting GM could affect truck production, with pickups made across the U.S., Canada and Mexico. Tourism & Infrastructure: Chichén Itzá reopened after a 13-day closure tied to vendor relocation for the Maya Train’s Catvi visitor complex. Border/Ag Security: U.S. CBP quarantined a rare leafhopper found in leafy greens at the Nogales port of entry, underscoring fresh-produce inspection pressure. World Cup Economy: FIFA World Cup 2026 is driving major spending and scams warnings, while Mexico’s World Cup-related travel and ticket resale rules remain a hot topic.

USMCA/Trade Talks: The U.S. is pushing new USMCA rules that would require North American-built vehicles to hit 82% regional content, with 50% made in the U.S., and the proposal would not count Canadian parts—Canada is not even at the Mexico City talks. Customs & Border Enforcement: Mexico says importers can no longer delay compliance under a new customs declaration law, while authorities also report a cross-border tunnel discovered near Otay Mesa. Public Health & World Cup Prep: The U.S., Mexico and Canada are aligning Ebola-related travel measures ahead of FIFA World Cup 2026, as countries keep monitoring suspected cases. Sports Business: Ghana’s Sports Minister Kofi Adams confirmed a $100,000 appearance fee per Black Stars player for the 2026 World Cup, while President Mahama ruled out government-funded mass fan travel due to an estimated ~$11,000 per supporter. Local Economy/Infrastructure: Mexico City’s business scene and tourism continue to lean on World Cup momentum, while Mexico also faces ongoing infrastructure and safety concerns like Tijuana wastewater line failures.

Biosecurity Alert: Mexico detected the New World screwworm just 30 miles from the US border, raising fears for cattle and food-chain stability if it spreads. Trade & Payments: Mexico and Russia are set to discuss SWIFT alternatives to keep dollar-free trade moving, with agricultural cooperation on the agenda. USMCA/Autos Talks: US and Mexico trade talks continue to focus on stricter rules of origin and higher US auto content, keeping North American supply chains in the spotlight. Aviation Risk: Airlines and business groups warn that potential US moves to halt international processing at major airports like Newark could trigger travel chaos and disrupt cargo. Markets Wrap: Stocks edged up for the week as investors weighed AI and deal headlines against rising bond yields and softer oil. World Cup Business: FIFA ticketing scrutiny grows as New York and New Jersey investigate alleged misleading pricing and “fake scarcity,” while Mexico’s World Cup tourism push continues to draw attention.

USMCA & Auto Rules: The US and Mexico kicked off formal trade talks on autos, metals and security, with Washington pushing stricter regional rules of origin and more US content in vehicles—Canada was left out of the first bilateral round. Election Reform: Mexico’s lower house backed a reform that would allow elections to be annulled over foreign interference, a move that’s already drawing political alarm. Religious Freedom Under Pressure: A CSW report warns Mexico’s federal and local authorities are failing to protect religious freedom as gangs threaten, displace and sometimes kill clergy. World Cup Logistics & Health: The US, Mexico and Canada announced aligned travel measures tied to an Ebola risk ahead of the 2026 World Cup, adding another layer of border scrutiny for fans and business travel. Agriculture & Trade Risks: Corn and soy markets show Mexico as a key buyer in export sales, while Mexico’s livestock faces a new threat from the New World screwworm fly near the US border—raising concerns for beef prices. Industry Investment: UPS is expanding air freight reach across North America and Mexico, signaling continued logistics investment tied to regional manufacturing demand.

USMCA Auto Talks: The U.S. is pushing for North American-built vehicles to meet 82% regional content, with 50% made in the U.S., and the proposal would not count Canada—raising stakes for Mexico’s auto supply chains as formal review talks with Mexico begin. Ebola Travel Measures: The U.S., Mexico and Canada announced aligned public-health travel rules for arrivals from high-risk African regions ahead of the 2026 World Cup, aiming to protect travelers while keeping cross-border movement and commerce mostly running. Mexico Electoral Reform: Mexico’s lower house approved a constitutional amendment allowing elections to be annulled over foreign interference, including illicit financing and disinformation, pending Senate approval. Infrastructure for Indigenous Communities: Mexico will invest 60 million pesos in an artisanal road program in Baja California, using community participation to build 7.8 km of roads and hire local indigenous workers. Agriculture & Biosecurity: A flesh-eating screwworm was detected in northern Mexico near the U.S. border, renewing concerns for cattle producers and beef prices. World Cup Host Economy: Mexico’s Estadio Azteca is set for the tournament opener, and the broader World Cup push is already driving major travel and spending expectations across North America.

Mexico’s World Cup boost: A new CIU study with Uber estimates the 2026 tournament could generate about $2.57B in benefits across Mexico City, Guadalajara and Monterrey in under a month, with transport, team camps, airport rules and tourism mobility driving the impact. Mexico’s election rules tighten: Mexico’s Senate passed a constitutional amendment allowing election results to be annulled over “foreign interference,” a move critics call overly broad and a potential veto over outcomes. Cemex financing: Cemex signed a new $3bn syndicated revolving credit facility, signaling continued funding momentum for the cement giant. Banking expansion: Scotiabank moves to expand its U.S. mortgage reach by buying MapleMark Bank, aiming to add a new funding source for independent mortgage lenders. Mining and tech: Arlyx Technologies showcased an autonomous electric underground hauling vehicle at NORCAT’s Mining Transformed event, targeting safer logistics and less downtime in deep mines. Wildlife trafficking case: A California man was sentenced to 65 months for smuggling at least 1,700 reptiles into the U.S., including animals sourced from Mexico, using social media sales and border “crossing fees.”

Meta Subscription Push: Meta is rolling out paid tiers across Facebook, Instagram and WhatsApp, including Instagram Plus features that let subscribers preview Stories without appearing in the viewer list—Mexico was among early test markets. Ebola Border Measures: The U.S., Mexico and Canada announced aligned travel health rules for arrivals from Ebola high-risk African regions ahead of FIFA World Cup 2026, with Canada adding a 90-day entry ban and 21-day quarantine for certain countries. World Cup Travel Reality Check: Canada’s border agency warns fans that a World Cup ticket isn’t a visa—entry still depends on standard travel documents and controls. Mexico Tourism Momentum: New WTTC data shows Mexico outpaced the U.S. and Canada in 2025 for international visitor spending (+3.5% in Mexico vs declines elsewhere) and arrivals (+6.1%), with the World Cup expected to lift regional tourism further. Mexico Politics—Election Nullification: Mexico’s lower house approved a constitutional amendment allowing elections to be annulled over foreign interference, defining it broadly from financing and propaganda to digital manipulation and government pressure. Insurance Expansion: Mapfre says it’s expanding its “large risks” unit in Europe and the U.S., adding cyber and parametric insurance as growth areas. Cross-Border Public Safety: U.S. CBP in Laredo launched a campaign warning travelers about the New World Screwworm threat near the U.S.-Mexico border.

USMCA Review Talks: The U.S. and Mexico have kicked off new rounds to update USMCA, with negotiations moving forward without Canada, as tariffs and automotive content rules remain key sticking points. World Cup Business & Compliance: FIFA is expected to arrange multiple-entry visas for Iran’s team, while Canada, the U.S. and Mexico align Ebola travel measures ahead of the tournament—showing how health and border rules are becoming part of event planning. Ticketing Scrutiny: New York and New Jersey attorneys general opened a probe into FIFA over “impossibly high” World Cup ticket prices and seat-allocation practices, targeting dynamic pricing and sales tactics. Mexico Tech & Industry: MISUMI launched MISUMI Americas with a $1B global investment push, aiming to scale digital manufacturing and supply chains in the U.S. Packaging Push: Sun Chemical will showcase sustainable packaging innovations at Expo Pack Mexico 2026 in Mexico City. Energy & Manufacturing Hardware: Carlo Gavazzi rolled out Wi‑Fi-enabled energy analyzers in the EM600 W line, targeting easier integration for energy-management systems. Mexico City Safety: A Chicago couple reported missing in Mexico City has prompted renewed calls for action as details emerge about location sharing and bank withdrawals.