Mexican businesses face greater risks from domestic issues like crime, judicial reform, and tax enforcement than from US trade uncertainty, according to José Medina Mora, president of Mexico’s Business Coordinating Council (CCE). He said extortion has evolved in regions such as Sonora, Colima, and Michoacán, with criminal groups controlling product delivery chains and forcing suppliers to sell through intermediaries who resell goods at a 20% markup. One in two companies reported being crime victims in the past year, with merchandise theft most common, followed by extortion, vehicle theft, and cybercrime.
While President Claudia Sheinbaum has reduced homicide rates by about half since 2020 and made over 2,000 extortion-related arrests, Medina Mora said judicial reform and tax disputes remain major barriers. A CCE review found SAT tax conflicts stalled investment projects, including double taxation and retroactive claims along the border. Medina Mora also urged reduction of US Section 232 tariffs on autos, steel, and aluminum, noting Mexican exporters face less favorable treatment than Japan, South Korea, or the EU.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing