Spoiler alert: this gets complicated
In response to statements emanating from the Mexican presidential bully pulpit that with the United States “we are doing better than any other country,” that “we dialogue with respect and on equal terms,” and that “we coordinate, we collaborate, but we do not subordinate ourselves,”— and also in response to narratives about how Mexico and its president deal with Donald Trump — a steady dose of realism and a reality check - in Mexico’s Congress and across the media, business organizations, and society at large- are urgently required, and we need to carefully weigh where things stand.
While navel gazing in the current juncture of the relationship with the US may feed egos and polls, it’s also dangerous. It can make us short-sighted and cause us to lose sight of the reality looming beyond the horizon. This is especially true since 2018, when Mexico irresponsibly turned its back on the world and on its closest diplomatic and trading partner. But - with Trump having once again kicked the can down the road - Mexico now faces 90 days of uncertainty on tariffs. That’s on top of the looming threat of the unilateral US force against transnational criminal organizations, and a steady stream of pressure points from Washington on a wide-ranging number of issues across our shared bilateral agenda. At no time since her swearing in and — more importantly — during the six months that Sheinbaum’s government has coexisted with the new US administration, has such a national discussion been so urgent in Mexico.
What Mexican governments — both this one and the previous — have failed to grasp is…
The Morena Pact
In 1989, a series of protests and disturbances in China culminated in the massacre at Tiananmen Square, Beijing’s central plaza. The event shook not only China, but also the outside world, which had placed its hopes on reintegrating China into the community of nations. No less important, the bloodshed threatened the country’s ongoing process of economic transformation. Gradually, internal peace was restored, and an implicit social pact was forged that became the cornerstone of the spectacular economic growth that followed. That pact consisted of an implicit exchange: the government would do whatever was necessary to ensure rapid economic and living standard growth, in return for the population’s acceptance of the Communist Party’s exclusive rule and a commitment not to challenge the political system. The result was staggering.
Although Mexico is not — and cannot be — like China, Morena has been gradually advancing toward a similar arrangement, also implicitly. The Morena pact, articulated over the course of the previous sexenio, reveals not only the nature of Morena, with its dogmas and factions, but also the country’s current moment. One way to describe it is as a tacit agreement whereby the population accepts that there will be no economic growth, jobs, or a functioning health system in exchange for the continuation of social programs and cash transfers.
Of course, this is not a formal agreement, nor one that is explicitly recognized, but rather a de facto exchange that was shaped during the previous administration and that now explains the two most relevant factors in national politics: first, the president’s high popularity, and second, the elevated consumption levels among Mexico’s lower middle class — the primary beneficiaries (and clientele) of the government.
This also explains…
Sheinbaum’s monologue diplomacy is meeting Washington’s deaf ear
by David Agren, writer-at-large.
Shortly after rumours started that Ovidio Guzmán – son of imprisoned Sinaloa cartel boss Joaquín “El Chapo” Guzmán – might plead guilty on drug trafficking charges and accept a deal with US prosecutors to turn state’s witness, influencers for Mexico’s ruling party settled on a narrative for denouncing the US government’s actions: It was negotiating with terrorists.
President Claudia Sheinbaum repeated that narrative, too. From the podium of her mañanera press conference, she objected to the deal with the younger Guzmán, while noting the lack of cross-border coordination in the plea bargaining process and reiterating her opposition to the Trump administration’s designation of six drug cartels as foreign terror organizations. "They have a policy of not negotiating with terrorists,” she said. “They decided to designate certain criminal organizations as terrorists. So let them report whether there's an agreement or not."
Sheinbaum’s comments didn’t go unnoticed. Jeffrey Lichtman, Ovidio’s lawyer, plainly stated why the Mexican government wouldn’t be a party to any plea agreement: a lack of trust dating back to 2020 and the decision to send former defence secretary Gen. Salvador Cienfuegos back to Mexico after he was indicted on drug charges in the United States.
The war of words heated up as Sheinbaum, who doesn’t let any slight go unanswered, called Lichtman’s comments “disrespectful” and promised to…
There’s a lot more driving Mexico City’s gentrification than bad gringos
by David Agren.
The acerbic signs and graffiti criticizing gentrification in Mexico City’s fashionable neighbourhoods were certain to capture international attention.
“Spanish is spoken here,” “Mexico for Mexicans,” and, “Go home,” read three of the screeds.
Social media couldn’t get enough of the disorderly protests – with the familiar masked vandals infiltrating yet another march and smashing up storefronts. The Mexico City police were curiously absent. An easy narrative of Americans abroad wearing out their welcome, while ICE cruelly rounded up Mexican migrants in cities such as Los Angeles.
The Department of Homeland Security jumped in with its own snark, posting, “Oh,” above an X Post with protester graffitiing the words, “Not your home,” and a protester waving a sign in English admonishing, “Pay taxes, learn Spanish, respect my culture.
Much of the international media, meanwhile, focused on the core matter of gentrification, which has spread through leafy neighbourhoods such as Roma, Condesa and Juárez – among others – over the past 15 years, driving up rents and forcing some long-term residents to move as their homes became short-term rentals.
The easy hook for any story on gentrification are…
These are Mexico’s five new public security laws, and this is what they do
by Alexandra Helfgott.
President Claudia Sheinbaum has accelerated the momentum initiated by her predecessor to overhaul Mexico’s approach to public security. Her administration has pursued a strategic transformation of the country’s security framework. While these laws are framed as tools for enhancing transparency and accountability, critics argue they threaten the rule of law and civil liberties.
This shift began under President Andrés Manuel López Obrador (AMLO), who in 2019 created the National Guard, a civilian force meant to replace military deployments following the 2006 launch of the War on Drugs. AMLO and allies described the Guard as a temporary force crucial to restoring accountability in security efforts. However, the Guard’s role quickly expanded, taking over customs and border control, infrastructure projects like Tren Maya, and migration enforcement. It evolved into a central pillar of Mexico’s security strategy. Just before leaving office, Congress approved a constitutional reform placing the Guard under military control (Sedena), following a failed 2023 attempt blocked by the Supreme Court.
Less than a year into office, Sheinbaum has embraced continuity, introducing over 20 bills in an extraordinary congressional session. Several of these will significantly alter public security policy, sparking concerns about increasing surveillance and militarization.
These are the five new laws and reforms that will fundamentally transform Mexico’s national security approach…
Editor’s note: On Mexico’s rapid, breath-taking descent into total surveillance
by Andrew Law, founder and editor.
In 2014, Luisa Alcalde — now Morena’s party president — blasted then-President Peña Nieto’s telecom reform on Twitter: “Signal blocking, prior censorship, data retention, geolocation all in the hands of #Segob.” A decade later, her critique fits just as well with the sweeping intelligence and security laws passed last week by her own party under President Claudia Sheinbaum.
The new laws mandate a centralized national platform compiling every citizen’s and company’s personal data: telecom records, banking info, healthcare, education, vehicle registrations, court records. All of it. With no independent court oversight, no meaningful access restrictions, and the possibility of real-time geolocation.
At the same time, Congress pushed through reforms to the National Guard that, as we report this week, all but erase the line between military and civilian authority.
Ana Lilia Moreno of México Evalúa tells me the changes mark one of the most disruptive shifts in Mexican public life since…
Mexico’s democratic transition turns 25 - or only 7, if you ask Morena…
by David Agren, writer-at-large.
Morena supporters marked one of their movement’s many anniversaries on July 1: the seventh anniversary of the ruling party’s founder, former Andrés Manuel López Obrador, overwhelmingly winning the 2018 election.
AMLO’s win brought the left to power, though critics accused the new president of governing like a conservative with his initial agenda of austerity. And supporters claimed AMLO’s win finally brought democracy to Mexico, despite multiparty elections being held at all levels of government throughout this century.
“This July 1st, we proudly celebrate the day of the revolution of consciences. Long live the Fourth Transformation!” President Claudia Sheinbaum posted on X.
The so-called Fourth Transformation (4T) – as AMLO christened his movement – diligently marks anniversaries, which offer pretexts for a populist movement to mobilise its base and herd social-benefits recipients to rallies.
Mexico also marked a major anniversary – unrelated to AMLO – which passed uncelebrated: Former president Vicente Fox ended one party rule on July 2, 2000, ousting…
Mexico’s government is using the disappeared to build a surveillance state, families say
by Madeleine Wattenbarger.
A polemical point of the reform to the General Disappearance Law passed by Mexican legislators this week is the use of a biometric CURP to search for missing people. The reform is part of a broad legislative package that includes a reform to the General Population Law, which establishes the use of a CURP with fingerprints and a photograph as an identification document obligatory for access to public and private services. The data will go into a Unified Identity Platform (PUI, by its initials in Spanish), which will, in theory, permit the authorities to locate missing people by their CURP.
A previous iteration of the biometric CURP proposal was backed by the World Bank, and similar initiatives were proposed by Felipe Calderón, Enrique Peña Nieto and former Secretary of the Interior Olga Sanchez Cordero. The reform comes out of a proposal presented by Claudia Sheinbaum on March 27, after disappearances in Mexico were thrown into the spotlight: search collectives found a ranch in Teuchitlán, Jalisco, where victims of forced recruitment were held, and the United Nations Committee on Forced Disappearance gave the official assessment that systematic state disappearances exist in Mexico.
After Sheinbaum presented the reform to the General Disappearance Law, the government held a series of feedback sessions with search collectives and victims’ families. Some of the families’ proposals appear in the revised law passed by the Senate. It will incorporate…
Textbook populism fueled Mexico’s debt and now it’s near breaking point
by Macario Schettino.
Editor’s note: Mr. Schettino is an eminent Mexican economist and retired professor at Monterrey Tech’s School of Government.
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As the United States debates the One Big Beautiful Bill Act (OBBB), there may also be public discussion around that country’s fiscal sustainability. The US isn’t the only country struggling with the size of its debt — it's actually a very common issue among industrialized nations. But the issue is particularly important for Mexico.
Mexico has long been one of the countries with the lowest tax collection rates in the world, measured as a share of GDP. Prior to the 2013 tax reform, tax revenues were below 10% of GDP, supplemented by oil revenues and income from state-owned enterprises and agencies, bringing the total to about 18% of GDP. That was all the government had to fund its expenses — hence the poor coverage and quality of public services.
Although Mexico joined the global trend toward a welfare state starting in the 1960s, it never enacted a fiscal reform capable of funding its growing obligations. While many attempts were made, only one succeeded — in 1980, with the creation of a value-added tax. The next major reform came in 2013, raising tax revenue from 8% to 14% of GDP. With that, the government’s total revenues reached 22% of GDP.
Those revenues, along with a moderate deficit, allowed for spending close to 24% of GDP — still insufficient to fully meet the government's responsibilities at a reasonable level. However, under former President López Obrador’s administration, public spending increased significantly without a corresponding increase in revenues. As a result…
Mexico is paying a high price for its opposition parties’ malaise
by Gerónimo Gutíerrez.
Editor’s note: Amb. Gutíerrez served as Mexico’s Ambassador to the United States and also as Mexico’s Undersecretary for Governance.
Mexico’s political opposition today finds itself in a dire position. Since its founding in 2014, the ruling Morena Party has made extraordinary gains. It now holds the presidency, 23 of 32 governorships, comfortable majorities in the federal congress and 27 state legislatures, and, together with its allied parties (the Workers' Party, or PT, and the Green Party, or PVEM), has the power to enact laws and even amend the Constitution at will. President Sheinbaum enjoys exceptionally high approval ratings (around 70%), much like her predecessor, former President Andrés Manuel López Obrador, did.
In recent years, Morena-led governments have taken actions that appear to significantly weaken institutional checks and balances, the separation of powers, and democratic norms. To be sure, Morena and the President reject this characterization — but critics, both in Mexico and abroad, make a persuasive case. For example, the Global Democracy Index published by The Economist now classifies Mexico as a hybrid regime, no longer even a flawed democracy.
In the 2024 election, the traditional parties (PAN, PRI, and PRD) received only 27% of the presidential vote, compared to the 60% won by Claudia Sheinbaum. Currently, the PAN governs just four states, the PRI only two, and both hold modest parliamentary groups in Congress. The PRD no longer exists. Movimiento Ciudadano (MC) appears to be the emerging party. It secured a significant 10% of the presidential vote in the last election and currently governs two states. However, it is hampered by internal inconsistencies and scandals, which raise serious doubts about its long-term potential.
Under these circumstances, it is only natural to ask whether the political opposition has pursued the right strategy to counter Morena’s rise — and if not, what that strategy could look like in the future. There are no easy answers, but perhaps a few sensible working hypotheses.
In a country where 43% of the 128 million population lives in poverty (according to 2022 official figures), machine politics work. The Morena governments have built a vast platform of social programs, including direct cash transfers that reach an estimated 25 million households. Opposition parties have wavered between timidly supporting these programs and criticizing their effectiveness, political bias, and fiscal sustainability. Unless they can clearly articulate where they stand…