Mexico’s economy – BBC News

Returning to Mexico’s complex relationship with its northern neighbor, President Sheinbaum faces two very different potential partners in Washington – either the first female US president in Kamala Harris, or Trump’s second.

Whoever wins in November will have to deal with several complex cross-border issues, be it trade or illegal immigration, gun trafficking into Mexico or fentanyl into the United States.

Additionally, the United States-Mexico-Canada Free Trade Agreement (USMCA) is up for renegotiation in 2026, with changes ranging from minor amendments to major changes possible.

The USMCA was introduced in 2020 when it replaced the previous North American Free Trade Agreement between the three countries.

Sheinbaum also has to keep an eye on the peso. In the days following her election victory in June, the currency fell against the dollar.

This was largely in response to the outgoing president’s decision to pursue a major reform of the country’s judicial system, under which all 7,000 judges and magistrates in Mexico would be elected by popular vote. Sheinbaum also supports the plan.

Washington’s disapproval of the measure, publicly expressed by US Ambassador to Mexico Ken Salazar, suggests it could complicate and even jeopardize parts of the USMCA review. Relations between Ambassador Salazar and the new administration have already become noticeably colder.