AGP Executive Report

Mexico-US Trade & Industry: Mexico’s auto and steel sectors are bracing for renewed pressure as the U.S.-Canada trade fight spills into North American supply chains, with Mexico watching USMCA uncertainty and foreign investment hesitation. Energy & Infrastructure: Shell is buying into BP’s Conifer prospect in the Gulf of Mexico, signaling continued upstream focus even as the region’s energy politics stay hot. Logistics & Cross-Border Trade: Cross-border trucking and logistics firms keep expanding hiring and routes between Mexico and the U.S., underscoring demand for dry and refrigerated freight. Food & Agriculture: Global beef output is expected to fall, and Mexico-linked supply shifts are already affecting import flows and prices. Water & Environment: Drought and border-region water stress are driving new investment plans for South Texas, while sewage cleanup efforts remain a major operational priority. Policy & Security: Mexico’s push to screen foreign takeovers for national security is back in the spotlight as companies weigh expansion risks.

Trade & Industry Policy: Mexico has launched an anti-dumping investigation into steel sheet imports from Japan, after Grupo Acerero alleged price discrimination; the probe covers the investigation period through 2025 and damage analysis from Jan 2023 to Dec 2025. Logistics & Cross-Border Trade: Cainiao is expanding its Mexico express network to nationwide coverage, aiming to strengthen cross-border customs clearance and delivery reach. Mining & Metals: Sonoro Gold reported initial 10,000 meters of drilling at its Cerro Caliche project in Sonora, including a newly identified mineralized zone at El Quince with higher-grade intervals. Energy & Circular Economy: Holcim Mexico is expanding its circular economy investment, while CFE restored 100% power across four Mexican states after vandalism incidents. Food & Consumer Markets: Taco Cabana is marking its 48th anniversary with new menu items and limited-time offers, including the Dragonada beverage. Business Finance: Felix Pago raised $200m to expand beyond remittances into broader financial services for Latin American immigrants, including Mexico.

Offshore Shipping Deals: Tidewater closed its $500M acquisition of Brazil’s Wilson Sons Ultratug and Atlantic Offshore Services, adding 22 PSVs and expanding its OSV footprint in Brazil. Energy Supply Watch: Belize Electricity Limited warned of possible load shedding after CFE signaled high demand could force curtailments, with a tentative schedule for Sept. 1. Cross-Border Water & Pollution: San Diego County supervisors approved steps to explore treating Tijuana River sewage flows before they reach the ocean, while also advancing a separate plan for a toxic air hot spot. Mexico-US Agriculture Trade: Mexico resumed live cattle exports to the U.S. under a New World screwworm protocol, adding farm-origin inspections and treatment steps before entry. Manufacturing Pulse: ISM reported August U.S. manufacturing PMI at 54.6%, with new orders and production still expanding. Food Safety: A Cyclospora outbreak tied to shredded iceberg lettuce linked to Mexico-based growers has sickened 11,000+ across 20 states, with FDA urging consumers to avoid recalled product. Mexico Economy Angle: A report highlights Mexico’s Q2 growth at 1.4%, with inflation and growth concerns still in focus.

USMCA Uncertainty Hits Mexico Investment: Reuters reports companies in Mexico are reconsidering expansion or relocating after Trump’s USMCA shift to annual reviews and tariff threats, adding pressure to already jittery supply chains. Food Safety Shockwaves: Cyclospora cases in the US tied to iceberg lettuce imported from central Mexico (Taylor Farms de Mexico) are now at a record 17,180 lab-confirmed infections; separate Salmonella mango recalls hit Walmart shoppers in multiple states. Energy & Industry Moves: Mexico’s CFE plans 5.4 GW of solar by 2030, while Contecon Manzanillo gets approval to handle ultra-large container ships with deeper drafts. Mining & Metals: Sonoro Gold reports initial 10,000 meters of drilling at Cerro Caliche in Sonora, aiming to expand an open-pit heap leach project. Logistics & Trade: ICTSI scales up its Mexico terminal for bigger ships, signaling continued port capacity upgrades for nearshoring demand.

Port Expansion in Mexico: Contecon Manzanillo (ICTSI) won approval to handle ultra-large container ships at Port of Manzanillo, boosting capacity at TEC-II for vessels up to 15.5-meter draft and targeting even larger 17-meter operations. Cross-Border Logistics & Security: U.S. authorities stopped a tractor-trailer from Reynosa carrying “leeks” that concealed $10.75M in meth at the Pharr bridge, underscoring how cargo screening is shaping Mexico-U.S. freight flows. Border Tech Upgrade: The U.S. military used a high-energy laser to shoot down three cartel-linked drones near the Texas-Mexico border, signaling a new phase in anti-drone enforcement. Trade & Market Access: South Korea revived its CPTPP bid, a move that matters for Mexico-linked supply chains as the bloc includes Mexico and other major trading partners. Food Safety Pressure: Cyclospora cases in the U.S. topped 17,000 since May 1 as federal research support is reportedly being scaled back, raising stakes for produce exporters and processors. Labor & Compliance: Mexico’s animal-testing ban for cosmetics remains a key regulatory benchmark as cruelty-free rules tighten globally.

Port & Logistics: Contecon Manzanillo (CMSA) got approval to handle vessels with up to a 15.5m draft, aiming to support ultra-large container ships and higher throughput as dredging and basin works continue. Healthcare & Biotech: NurExone Biologic reported Q2 2026 results and outlined a Mexico commercial push plus a proposed U.S. GMP exosome manufacturing collaboration targeting early 2027 batches. Mining & Metals: Alamos Gold said a board change follows Claire Kennedy’s appointment as Canada’s consul general in Chicago; Capstone Copper completed its San Pietro acquisition in Chile to expand its district-scale copper footprint. Energy & Industry Tech: Multiple market outlook releases point to continued growth in batteries, railroads, automotive NVH materials, electrical bushings, and cryocoolers—signals of ongoing investment across electrification and infrastructure. Food Safety: The U.S. FDA reiterated recalled iceberg lettuce tied to the Cyclospora outbreak is off the market, while broader recall activity keeps pressure on food-safety systems. Mobility (LATAM): Linktour showcased its circular-economy EV concept at Ecomondo Mexico, positioning Mexico as a regional growth gateway.

Hospitality Investment: San Miguel de Allende is in a hotel boom, with a $70M Pueblo Bonito Vantage opening, Marriott’s Cleviá arriving, and 1 Hotel & Homes in the pipeline—another sign luxury brands keep betting on Mexico’s secondary destinations. Agri-Exports & Security: Mexican avocado exports to the U.S. resumed after a security alert was lifted in Michoacán; workers returned to packing plants, but producers still worry about cartel-linked violence and extortion. Trade & Food Industry: The U.S. is pushing back in Mexico over a cheese naming protections deal tied to EU regional brands, arguing terms like “parmesan” and “feta” should stay generic—raising pressure in broader U.S.-Mexico trade talks. Industrial Safety Materials: Arclin will showcase Kevlar® and Nomex® protection solutions at Oil & Gas Asia 2026, following its DuPont acquisition to expand worker safety gear across ASEAN. Auto Sector Signals: BYD’s overseas revenue outpaced China for the first time, underscoring why Chinese EV makers are leaning harder on exports as domestic demand stays tough.

Cross-Border Logistics: Nuevo León’s governor Samuel García is pitching a “border boom” strategy with Texas to capture surging U.S.-Mexico freight, aiming to tighten the Monterrey–Laredo–San Antonio–Houston–Dallas corridor and strengthen the “Gold Triangle.” Construction & Skills: ICIC will join the Digital Construction & Innovation Summit in Monterrey (Nov. 5-6) to push BIM and digital transformation, aligning workforce training with modernization needs. Agribusiness & Trade: U.S. farm leaders are warning that a proposal to add 300,000 metric tons of imported ground beef could discourage cattle herd rebuilding and pressure domestic processors, even if grocery prices don’t fall much. Energy & Oil Markets: The U.S. and Venezuela oil deal is still sparking questions about how “majority U.S. control” will work and what it means for Venezuela’s oil modernization and jobs. Security & Industry Risk: U.S. Northern Command used a high-energy laser to shoot down three drones suspected of cartel surveillance near the southern border, underscoring rising tech-enabled smuggling threats. Maritime Environment: Researchers report the northern Gulf of Mexico hypoxic zone shrank to about 1,332 sq miles, a smaller “dead zone” than expected after storm disruption.

Mexico-Linked Honey Exports: Mexico is the world’s 9th-largest honey exporter, shipping about 27,200 metric tons annually on average (2021-2025) and reaching 60,297 tons of production in 2025, with Yucatán leading output and Germany plus the U.S. as top buyers. Green Energy Momentum: Mexico’s energy transition is accelerating under President Claudia Sheinbaum, with targets to add 32+ GW by 2030 and push renewables (solar, wind, geothermal) to dominate new generation. Fuel-Trafficking Crackdown: Yucatán authorities intensified inspections of fuel cargo vessels at Puerto Progreso, checking that declared volumes and types match physical shipments for gasoline, diesel and jet fuel. Food Safety Shock: A cyclosporiasis outbreak in the U.S. has hit demand for lettuce, with the largest cluster linked to iceberg lettuce grown in Mexico, pressuring growers and processors. Housing From Waste: A Puebla-based social enterprise is turning discarded plastic into wall and roof panels, building hundreds of rooms and homes while cutting waste. Livestock Biosecurity: Sonora confirmed nine new New World screwworm cases as the Douglas port reopened to cattle trade, with enhanced entry inspections in place.

Mexico Economy Watch: INEGI says Mexico grew 1.4% in Q2, a rebound from Q1’s contraction, with farming, fishing and mining up 2.4%—but inflation concerns remain. Food & Packaging Policy: A Lighthouse Reports probe says major food companies filed 239 lawsuits (including in Mexico) to delay or weaken health warning-label rules. Energy Demand: BEL warns of possible power outages as Mexico faces high electricity demand. Cross-Border Water & Industry: Imperial County backed Calexico’s Prop 4 grant push to expand a wastewater treatment plant, citing industrial and agriculture-related pollutant loads affecting Mexicali. Cartel Justice Angle: A fugitive son of a jailed Jalisco cartel leader denies involvement in the TikTok livestream killing of his influencer ex-girlfriend. Global Logistics Investment: ICTSI (Enrique Razon) agreed to buy full control of TLG Acquisition Holdings, expanding port and cargo handling across Mozambique, Namibia and South Africa.

US-Canada Trade War Spillover: Trump’s executive order renaming Lake Ontario as “Lake America” is drawing backlash and renewed scrutiny of cross-border trade frictions, with experts saying Canada won’t be affected operationally but businesses are looking to diversify supply chains. Border & Infrastructure: A court-approved pause on Big Bend National Park border construction has been extended until mid-September, after bulldozers sparked outrage. Mexico-Linked Public Health: A cyclospora outbreak tied to recalled iceberg lettuce from central Mexico has now reached Georgia, pushing total cases to 11,458 across 20 states, with FDA classifying the recall as Class I. Security & Enforcement: The U.S. military says it used lasers to shoot down three Mexican cartel drones near the Rio Grande Valley, as officials cite rising drone use for smuggling and surveillance. Mexico Industry Watch: Guanajuato Silver granted incentive stock options to an officer (150,000 shares at $0.50, expiring 2031), underscoring ongoing investment activity in central Mexico mining.

U.S.-Canada Trade Fallout: President Trump signed an executive order renaming Lake Ontario to “Lake America,” effective immediately, as tariffs and counter-tariffs escalate; Ontario PM Mark Carney and New York leaders rejected the move, calling it absurd and a distraction. Border Security & Indigenous Rights: U.S. Customs and Border Protection has started building a new border wall segment in southern Arizona, drawing opposition from the Tohono O’odham Nation over alleged trespassing and impacts on sacred sites. Cross-Border Logistics: CMA CGM postponed a Panama Canal Low Water Surcharge from Sept. 1 to Oct. 1, warning of tighter draught limits and fewer transits that could reduce container capacity—relevant for Mexico-bound routes. Mexico Trade Talks—Cheese Names: Reuters reports the U.S. is pushing back on Mexico’s EU-linked protections for regional cheese names, a sticking point in U.S.-Mexico negotiations. Mexico E-commerce Fulfillment: Cainiao says it expanded customs clearance and last-mile delivery in Mexico, adding a 20,000 sq m sorting center near the airport and nationwide express coverage. Food Safety: A lawsuit in Illinois links cyclospora illness to iceberg lettuce from Taylor Farms, underscoring ongoing outbreak scrutiny.

Trade & Industry Shock: Mexico’s top concern this week is the spillover from the U.S.-Canada tariff fight, with Mexico also pushing back on U.S. actions tied to ICE custody deaths (Human Rights & Enforcement: Mexico’s Sheinbaum says there are “too many cases” of Mexicans dying in ICE custody and is escalating pressure for U.S. investigations). Food Supply Chain & Health: The U.S. widened its cyclosporiasis probe tied to iceberg lettuce from central Mexico to 20 states, with FDA/CDC continuing inspections and sampling at the Mexico-linked processing chain (Agrifood Risk: consumers are being told salad/lettuce doesn’t need to be avoided if handled safely). Cross-Border Logistics: UPS is committing $2bn to expand its logistics network, a move that matters for Mexico’s shippers and manufacturers watching North American freight capacity (Logistics Investment: network expansion supports faster, more resilient delivery flows). Mexico-Linked Business Moves: Knight Therapeutics filed a supplemental submission to Brazil’s ANVISA for MINJUVI® earlier-line use, signaling continued pharma expansion in the Americas (Healthcare & Manufacturing: regulatory push can affect supply planning).

UPS Logistics Expansion: UPS will invest over $2bn through 2028 to grow its international, healthcare and supply-chain network, adding hubs (Philippines, Hong Kong), 27 temperature-controlled cross-docks, and more regional capacity. Food & Retail Innovation in Mexico: BranchOut Food secured initial orders for new fruit/veg snack multipacks and shelf-stable dried cheesecake bites with a major warehouse club retailer, including its first international warehouse club program in Mexico. Trade & Industry Pressure (US-Canada): A fresh US-Canada tariff fight is escalating uncertainty for North American auto supply chains, with warnings that 50% tariffs on vehicles and parts could hit jobs and production on both sides. Security & Cross-Border Tech: Research highlights how Android banking apps are prime targets for malware that can hijack authentication, while Mexico-linked cartel cases continue to draw US legal action. Agriculture & Supply Chains: Beef prices keep climbing in Texas as cattle herd levels stay near multi-decade lows, while cold-chain and logistics upgrades remain a key theme for moving perishable goods.

Beef Supply Push: U.S. President Trump signed a proclamation to temporarily raise imports of lean beef trimmings by 300,000 metric tons under the tariff-rate quota, split into three 100,000-ton tranches starting Sept. 1—aimed at easing record-high ground beef prices, though ranchers warn it could undercut domestic producers. Trade Tensions North of the Border: U.S.-Canada tariff escalation continues after the USMCA review fallout, with the U.S. disputing claims of last-minute demands while Canada prepares retaliatory measures—raising knock-on risks for North American supply chains that Mexico also depends on. Mexico Industry Watch: Mexicali is building a new Autódromo Nacional de Baja California, a 20-hectare motorsports complex slated to open in Feb. 2027 to move drag, drift and off-road racing off public streets into a sanctioned venue. Energy & Water Pressure: Arizona’s water augmentation planning continues as the Colorado River crisis deepens, while broader infrastructure and power reliability concerns remain in the background for the region’s industrial activity.

USMCA & Auto Supply Chains: Honda says it may pause a new North America assembly plant unless the USMCA deal is extended, as hybrid demand rises and tariff uncertainty grows. Space & Industrial Investment: SpaceX unveiled its $100B Starbase Louisiana on Pecan Island (125,000 acres), aiming for Starship launches starting in 2029 and scaling to thousands of flights a year. Mining Expansion in Mexico: Sonoro Gold says its Mexican unit completed the acquisition of 23 nearby mineral concessions to expand the Cerro Caliche gold project in Sonora. Water & Manufacturing Resilience: TSG Water Resources commissioned a new 700,000 GPD high-recovery desalination train at Chileno Bay in Los Cabos, boosting sustainable potable supply. Cybersecurity for Mexico’s Business Connectivity: Veea cleared Totalplay’s technical qualification to roll out Veea SecureConnect and VigiLynx for Mexican business customers. Corporate Governance: Grupo Cotemar earned PRIME 5-Star certification for implementing top-tier corporate governance practices. Agriculture & Trade Pressure: A US ag coalition urged USMCA tariff exemptions for covered products, warning new duties could disrupt farm supply chains. Logistics & Cold Chain: TA Dedicated and Chiquita marked 20 years of dedicated transportation collaboration supporting refrigerated produce shipping. Retail & Payments: Veea and Totalplay advance secure, AI-powered business services in Mexico, while OpenPayd launched on Circle’s network for faster global fiat transfers.