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1. Second round of USMCA talks concludes as G7 takes place

Mexico and the United States reported progress in the second round of bilateral negotiations on the USMCA review. According to both governments, the talks focused on rules of origin for certain industrial goods, economic security, as well as preliminary discussions on agriculture, labor, and the environment. They also addressed trade in steel, aluminum, and automobiles, and agreed to support the creation of a committee to review the implementation of Chapter 12 (Sectoral Annexes), in order to improve regulatory compatibility. They noted that on July 1 the three countries will hold a virtual meeting to define the future of the treaty, where it will be decided whether the agreement is automatically extended for 16 years or continues for 10 years with periodic reviews.

During the G-7 meeting in France, President Donald Trump again said he would prefer not to have the USMCA, although he left open the possibility of signing its renewal. For her part, President Claudia Sheinbaum said that, if necessary, she would seek a call with President Donald Trump in order to explain the benefits that the USMCA represents for the three nations.

Milenio: Sheinbaum presenta Olinia, vehículo eléctrico diseñado en México

El Economista: México y EU avanzan en análisis de reglas de origen

2. Mexico falls in global competitiveness; cities face weak growth

Mexico fell seven places in the IMD World Competitiveness Index 2026, moving from 55th to 62nd out of 70 economies assessed. The country posted its best results in economic performance, but lagged in infrastructure and government efficiency, receiving its lowest scores in areas such as business legislation, basic infrastructure, and public finance. The organization said the country needs to strengthen coordination among levels of government, legal certainty, innovation, and domestic value chains.

In parallel, the 2026 Urban Competitiveness Index from the Mexican Institute for Competitiveness (IMCO) showed that the country’s metropolitan areas are also facing a challenging environment. Average economic growth in the cities assessed fell from 4.1% to 2.4%, while violence and the perception of corruption remain high. Although some cities show progress in infrastructure and government capacity, the report concludes that labor informality, insecurity, and weak institutions continue to hold back urban competitiveness.

El Universal: Desciende México 7 posiciones en Índice de Competitividad Mundial; infraestructura y eficiencia gubernamental con los peores niveles
 
IMCO: Índice de Competitividad Urbana 2026

3. Morena will indeed run with allies in elections, and more changes are announced in the expanded cabinet

Morena, the PT, and the Green Party (PVEM) announced that they will begin the joint registration of aspirants for 16 of the 17 governorships that will be contested in 2027, following their distancing over electoral reform; only in one state does the PVEM appear set to run alone. The parties also plan to run together for seats in the federal Chamber of Deputies, confirming that the alliance that brought Morena to power remains united. The process will begin on June 22 and, according to the call for applications, registrations will take place at the World Trade Center in Mexico City. Morena also confirmed changes to its internal structure with the appointment of Manuel Jesús Zavala as Secretary of Organization, replacing Andrés Manuel López Beltrán.

Against this backdrop, the Permanent Commission of the Congress of the Union approved the leave of absence of 17 pro-government lawmakers who will seek to take part in Morena’s or the PVEM’s internal processes for those candidacies. These moves are accompanied by changes in key areas of the federal government: Laura Itzel Castillo will become the next head of the Ministry for Women upon completing her term as President of the Senate, while Carlos Torres Rosas will take over as head of Nafin and Bancomext, replacing Roberto Lazzeri, now Mexico’s ambassador to the United States.

Animal Político: Coalición de Morena, PT y Partido Verde lanza convocatoria para gubernaturas; aún no hay acuerdo de candidaturas comunes
 
La Jornada: Laura Itzel será secretaria de las Mujeres al dejar la mesa directiva del Senado

4. Encouraging economic activity data are reported for the country

Industrial activity in Mexico grew 2.1% month-on-month in April, its largest increase since March 2021, driven mainly by construction and manufacturing; on an annual basis, industrial activity rose 1.8%, while mining and electricity, gas, and water services posted declines. In parallel, manufacturing production increased 1.9% year-on-year in April, marking four straight months of growth. This was accompanied by Mexican exports reaching a record level of USD 709 billion, while shipments from Mexico to the United States hit a new all-time high, consolidating the country as that market’s top trading partner.

Finally, formal employment showed a positive trend, albeit with a slight monthly decline. Nationwide, 22.7 million jobs affiliated with social security were recorded, with a reduction of around 30,000 positions attributed to seasonal factors in the agricultural sector. In this context, the State of Mexico stands out as one of the states with the strongest momentum in formal job creation, reaching 2,065,623 workers registered with the IMSS. This performance places the state among those reporting annual increases above the national average.

El Economista: Actividad industrial da la campanada en abril: crece 2.1% mensual con impulso de la construcción
 
El Heraldo de México: Exportaciones de México suman 709 mil mdd en abril de 2026

5. Energy Justice Program presented

President Claudia Sheinbaum presented the Energy Justice Program, through which the federal government seeks to electrify virtually the entire country by 2028, reaching coverage of 99.99%. The plan includes more than 45,000 projects and an investment of 21.377 billion pesos, with priority given to remote and Indigenous communities. According to the CFE, national electricity coverage currently stands at 99.85%, and 8,247 localities still remain to be electrified.

The director of the Federal Electricity Commission (CFE), María Esther Calleja, reported that the current administration has built 17,016 electrification projects. It is estimated that from 2024 to 2030, 45,182 projects will be carried out, including those planned for the Seri community in the state of Sonora (1.2 million pesos); Villa Juárez, San Luis Potosí (2.8 million pesos); San Quintín, Baja California (86 million pesos); the state of Michoacán (304 million pesos); and the Sierra Tarahumara (670 million pesos).

Milenio: Destinarán 21 mil mdp para programa de justicia energética
 
Gobierno Federal: Este sexenio vamos a electrificar todo el país con el Programa de Justicia Energética: Presidenta; serán más de 45 mil obras