February 7th, 2025
1. Restriction on Transgenic Corn Reversed
Through the Ministry of Economy, the government of Mexico lifted the ban on importing transgenic corn from the United States following a ruling from a dispute panel of the US-Mexico-Canada Agreement (USMCA). The decision, published on February 5, 2025, came after the panel determined that Mexico’s restrictions were not based on a proper scientific risk assessment. This marks the end of the ban imposed by the Mexican government in 2023.
Following the publication of this measure, the office of the U.S. Trade Representative (USTR) celebrated the resolution and Mexico’s compliance, emphasizing the importance of making decisions based on science regarding agricultural biotechnology and the positive impact of the measure on U.S. producers.
Animal Político: Secretaría de Economía retira prohibición para importar maíz transgénico de EU a México por resolución del T-MEC.
El Universal: EU celebra acuerdo que revierte prohibición al maíz transgénico en México; revisará que se cumplan compromisos.
2. Bank of Mexico Announces Interest Rate Cut
On Thursday, February 6, the Bank of Mexico (Banxico) announced a 50 basis point cut to its interest rate, reducing it from 10% to 9.50%. This decision, following four consecutive 25 basis point cuts, aims to ease monetary policy amid an economic slowdown and decreasing inflation. The rate is now at its lowest level since September 2022.
El Universal: Banxico se desvincula de la Fed y recorta la tasa de interés en 50 puntos; pasa de 10% a 9.50%.
3. Tariffs Paused with the US; Ecuador Announces Its Own
Following U.S. President Donald Trump’s announcement of a 25% tariff on Mexico and Canada, President Claudia Sheinbaum announced that an agreement had been reached with the neighboring country to pause these tariffs for 30 days and strengthen border security measures to control migrant trafficking. At the same time, Sheinbaum and several of her secretaries met with business leaders to strengthen Mexico’s economy and accelerate the “Plan Mexico” investment strategy aimed at boosting national production and increasing local content across various sectors.
Meanwhile, Ecuador announced the imposition of a 27% tariff on Mexican imports. President Sheinbaum downplayed the significance of the tariff, highlighting that the trade volume between the two countries is relatively small, with imports of Ecuadorian products accounting for 0.4 percent.
El Financiero: Sheinbaum ‘pelusea’ aranceles de Ecuador a México: ‘Saben más ricos los camarones de Sinaloa’.
4. National Semiconductor Plan Presented
President Claudia Sheinbaum presented in her morning press conference the project for the creation of the National Semiconductor Design Center “Kutzari,” which aims to boost the national semiconductor industry and reduce reliance on imports. The center, which will begin operations in the cities of Puebla and Guadalajara, seeks to strengthen the value chain of these key components for various industries, from automotive to electronics.
The project will be developed in three phases: the first focusing on semiconductor design, the second on the creation of a semiconductor factory between 2026 and 2029, and the third phase will involve consolidating the semiconductor industry in Mexico by 2030. The Mexican government also plans to make legislative changes to accelerate the patent registration process and protect national intellectual property, promoting the development of homegrown technologies.
La Jornada: Anuncian la creación del Centro Nacional de Diseño de Semiconductores.
5. Supreme Court Rejects Judicial Candidate List
The Supreme Court of Justice of the Nation (SCJN) rejected a list of nearly 1,000 candidates selected by the Senate through a lottery for the upcoming judicial elections on June 1, as it did not receive the necessary majority of votes. However, Senate President Gerardo Fernández Noroña announced that the Senate will send the list to the National Electoral Institute (INE) for registration following a ruling by the Electoral Tribunal.
This is part of the electoral process outlined in the judicial reform approved this year. The candidate lists will be used by the INE to consolidate the electoral ballots with candidates from the Executive, Legislative, and Judicial branches.