Tycoon Pays Up, Record Exports, & New Mexican Aid to Cuba

Mexico Decoded’s weekly briefing makes sense of the news that matters.

1. Mexico Shifts Cuba Aid Strategy

President Claudia Sheinbaum announced that Mexico will stop sending crude oil to Cuba. Instead, aid will come in the form of food, household goods, and basic supplies. Mexico had been one of the island’s last remaining oil suppliers.

Decoded:

The government frames this as a sovereign policy shift, but the timing points elsewhere. Trump says he personally asked Sheinbaum to cut oil shipments. He also threatened tariffs on any country that continues supplying fuel to Cuba. This looks less like a rethink of Cuba policy, and more like a reaction to pressure.

2. Exports to the U.S. Hit a Record

Mexican exports to the United States rose 5.3% year-on-year in November, setting a new record and reinforcing Mexico’s position as the U.S.’s top trading partner.

Decoded:

This reflects a strategic choice by the United States. Goods imported from Mexico contain more U.S.-made components than imports from any other major supplier. Faced with growing trade deficits, Washington increasingly prefers deeper integration with Mexico over continued dependence on China.

3. Powerbroker Steps Aside, Not Away

Adán Augusto López, leader of the ruling party’s caucus in the Senate, resigned from the post after a series of high-profile scandals.

Decoded:

The most serious allegation dates back to his time as governor, when his chief of police was later identified as the leader of an organized crime group. Still, López is far from sidelined. He keeps his Senate seat and has been assigned new responsibilities within the party.

4. Billionaire Reaches Deal, Pays Up

Mexican billionaire Ricardo Salinas Pliego agreed to pay 1.8 billion pesos in outstanding tax liabilities. Under Mexican law, voluntary payment comes with a 37% discount. Salinas has already made an initial payment of 600 USD.

Decoded:

For years, Salinas claimed paying his tax debt would bankrupt his companies. This settlement makes clear that wasn’t true.

5. The 40-Hour Week Gets Gutted

Mexico approved the gradual implementation of a 40-hour workweek. The reduction in hours will be phased in through 2030. The approved bill also gives only one day off, as opposed to the original vision of two mandatory days off.

Decoded:

The reform concedes heavily to business groups. The bill dropped the two days off proposal after claims it would hurt competitiveness. The same argument was used against minimum-wage increases, which had no measurable impact even after a 154% real increase since 2018.