Mexico - April 2026

We begin this April edition of the Latin American Regional Report: Mexico by examining the impact of the killing of one of the country’s most powerful drug kingpins, Nemesio ‘El Mencho’ Rubén Oseguera Cervantes, on 22 February. El Mencho’s death served a major blow to the cartel he led, the Cártel Jalisco Nueva Generación (CJNG), and a significant boost for President Claudia Sheinbaum, who has come under great pressure from US President Donald Trump to combat drug cartels. However, in the weeks following the operation, it has been clear that it was not the answer to all of Mexico’s problems. US pressure continues while questions remain as to what El Mencho’s removal means for the CJNG and Mexico’s wider criminal landscape.

The second piece in this issue focuses on President Sheinbaum’s electoral reform drive, which saw her submit a 10-point constitutional reform bill to congress on 4 March. After this was rejected by congress, Sheinbaum presented a ‘Plan B’ reform on 12 March. In this second bill, what was initially an ambitious restructuring of the political system narrowed into a more calculated and politically viable initiative, but one that still carries significant consequences for the balance of power ahead of the 2027 midterm elections.

The following article looks at the actions taken by President Sheinbaum to cushion the blow from surging international energy prices caused by the conflict in the Middle East. Resorting to a mix of fiscal relief and administrative pressure on fuel retailers, Sheinbaum is attempting a delicate balancing act to shield Mexican consumers from inflationary pressures at the same time as maintaining fiscal discipline, complicated by the fact that Mexico imports more than half of the gasoline and diesel it consumes domestically.

Looking to the region’s other biggest economies, the same piece notes that Brazil has opted for subsidies and price-capping measures similar to those implemented in Mexico, while the governments of Argentina, Colombia, and Chile are risking political backlash in a bid to protect fiscal health.

The next article concerns a new infrastructure bill that Sheinbaum sent to congress on 20 March. The bill aims to drive investment in strategic projects by overhauling how the state and the private sector work together.

The final article in this issue looks at the proposed merger between Mexican budget airline Volaris and competitor Viva Aerobus, a deal which has raised concerns about monopoly power and its potential effects in raising ticket prices, as this piece explains.