Didn’t have time to read this week’s top stories? Here’s what you missed.

Security and bilateral cooperation

The week’s most significant development came Tuesday when Mexico transferred 37 alleged cartel members to the United States in the third major prisoner handover since President Claudia Sheinbaum took office. Among those sent north were Ricardo González Sauceda, identified as a regional leader of the Northeast Cartel, and Pedro Inzunza Noriega, father of a senior Beltrán Leyva Organization figure. The transfer brings to 92 the total number of high-level criminals extradited during the current administration.

Mexico sends 37 alleged criminals to US in third major prisoner transfer

Security Minister Omar García Harfuch emphasized that all transferees were wanted by U.S. authorities and that Mexico received assurances the death penalty would not be sought against any of them. The move appeared designed to demonstrate cooperation amid mounting pressure from the Trump administration, which has recently threatened military strikes against cartels operating in Mexico.

President Sheinbaum defended the decision during Wednesday’s morning press conference, calling it a “sovereign” choice made in Mexico’s interests rather than a capitulation to U.S. pressure. Critics in opposition parties questioned whether proper legal procedures were followed, with some lawmakers demanding greater transparency about the terms of the transfers.

The bilateral security relationship also made headlines when Mexican authorities announced the arrest of Alejandro Rosales Castillo, an FBI “10 most-wanted fugitive” sought since 2016 for murdering his former girlfriend in North Carolina. Captured in Pachuca, Hidalgo, the arrest demonstrated ongoing cooperation between Mexican and U.S. law enforcement agencies.

Thursday brought an even more dramatic capture when former Olympic snowboarder Ryan Wedding turned himself in to authorities in Mexico City. Wedding, a Canadian who competed in the 2002 Salt Lake City Olympics, allegedly ran a transnational cocaine network that imported 60 tonnes annually while living a “colorful and flashy” lifestyle in Mexico for over a decade. FBI Director Kash Patel flew to Mexico City to personally escort Wedding and Castillo back to California, calling Wedding “a modern day Pablo Escobar.”

FBI Director Kash Patel announces the capture of Ryan Wedding, a former Olympian and accused drug lord, after years on the run.

“Just to tell you how bad of a guy Ryan Wedding is, he went from an Olympic snowboarder to the largest narco trafficker in modern times,” Patel said.… pic.twitter.com/GZgAFQqvd5

— CBS News (@CBSNews) January 23, 2026

Adding to the week’s security-related news, questions arose about a U.S. military plane that landed at Toluca airport Saturday. During Monday’s press briefing, Sheinbaum clarified that the flight had been authorized in October for training purposes, with Mexican security officials boarding the aircraft to travel north for a month-long program. Security Minister García Harfuch elaborated during Friday’s conference that U.S. Northern Command had invited Mexican personnel to a Mississippi base for tactical training in shooting and investigation. While Sheinbaum acknowledged it would have been preferable to use a Mexican military plane, she stressed no U.S. troops had entered Mexican territory.

Aviation alerts raise concerns

The Federal Aviation Administration issued seven NOTAMs (notices to airmen) Friday urging U.S. pilots to “exercise caution” over Mexico’s Pacific coast and the Gulf of California due to possible military activities and satellite navigation interference. Mexico’s response characterized the warnings as precautionary, with the Ministry of Infrastructure, Communications and Transport asserting there were no operational implications for Mexican airspace.

The FAA alerts, valid through March 17, sparked speculation about potential U.S. military operations in the region. However, Sheinbaum maintained Sunday that no U.S. military action was occurring in Mexican territory, pointing to coordination between Mexican authorities and the U.S. Embassy to clarify the situation.

International diplomacy and trade tensions

At the World Economic Forum in Davos, Mexico’s presence addressed both environmental and economic priorities. Environment Minister Alicia Bárcena used the platform to stress urgent climate action, warning that current efforts remain insufficient. She outlined Mexico’s development of three circular economy parks and its commitment to achieving net-zero emissions, while seeking international partnerships to accelerate the country’s green energy transition.

Perhaps more consequential for Mexico’s economic future were remarks by Canadian Prime Minister Mark Carney, whose speech Sheinbaum publicly endorsed during Wednesday’s press conference. Carney’s assertion that the rules-based international order is undergoing a “rupture, not a transition” — with veiled references to U.S. President Donald Trump’s policies — could signal challenges ahead for the USMCA trade agreement’s upcoming review.

The escalating tensions between Trump and Carney prompted immediate action from Mexico. After Trump called Canada ungrateful in his Davos speech, Sheinbaum promised Mexico would hold the deal together as Economy Minister Marcelo Ebrard went to Washington to smooth ruffled feathers. “We are going to work so that it doesn’t break,” Sheinbaum said of the USMCA deal.

Adding to economic developments, the Mexican peso strengthened to below 17.5 per U.S. dollar this week — its strongest level since 2024. Banamex economists predicted the “superpeso” could sustain strength for the next two years, offering a rare bright spot amid economic uncertainties.

Tourism and cultural promotion

Mexico took center stage at Madrid’s International Tourism Fair (FITUR) this week as the event’s partner country. The country’s comprehensive showcase featured all 32 states, with cultural performances including Oaxaca’s Guelaguetza and Michoacán’s Danza de los Viejitos drawing international attention. Mexican artist César Menchaca created a striking Huichol-inspired interpretation of Madrid’s iconic Bear and Strawberry Tree monument, placed prominently at Puerta del Sol.

FITUR was also the site of a significant diplomatic moment when Spanish King Felipe VI and Queen Letizia visited Mexico’s fair pavilion — the first contact between the Spanish monarchs and Mexican officials since former President López Obrador’s 2019 demand for an apology for the Conquest. Sheinbaum characterized the visit as “symbolic,” noting the royals’ interaction with Indigenous representatives could help “heal wounds.”

FITUR also yielded concrete results for Mexican states, with Guanajuato Governor Libia García announcing that Air Europa will establish direct flights from Madrid to the Bajío International Airport starting this year. The new route is expected to strengthen international connectivity and boost European tourism to central Mexico.

The promotional effort aligns with the Sheinbaum administration’s ambitious goal of positioning Mexico among the world’s five most-visited destinations by 2040. However, this aspiration faces headwinds from stagnating domestic tourism, which saw essentially flat growth in 2025 after declining in 2024. Experts attribute the trend to a weakening economy, reduced household purchasing power and security concerns affecting certain destinations.

Domestic health initiatives

On the home front, President Sheinbaum announced plans during Tuesday’s press conference to issue universal health care identification cards to all Mexicans, representing a step toward integrating the country’s fragmented public health system. The cards will link to electronic medical records and allow citizens to identify their health care provider while facilitating future cross-institutional treatment.

The registration process, costing approximately 3.5 billion pesos, will begin March 2 with 14,000 Welfare Ministry workers staffing registration modules nationwide. The initiative comes as measles continues spreading throughout all 32 states, with over 7,100 cases and 24 deaths reported in the past year despite vaccination efforts.

Judicial reform questions persist

Questions about Mexico’s controversial judicial reform resurfaced during Friday’s press conference in Veracruz when a reporter asked Sheinbaum whether the Supreme Court showed bias toward the ruling Morena party. The question followed an El Universal report finding that the newly elected Supreme Court — whose nine justices won their seats in Mexico’s first judicial elections last June — had ruled in favor of government-backed reforms at least six times without a single ruling against them. Sheinbaum deflected, saying the court itself would have to answer such questions, while noting that sessions were now public rather than conducted “in the dark” as before.

Weather and natural conditions

As the week ended, Mexico’s National Meteorological Service issued winter weather alerts for northern states, warning of the third major winter storm of the season. Border states including Baja California, Sonora and Chihuahua faced predictions of significant temperature drops, strong winds and heavy rainfall, with possible snow or sleet. The warnings coincided with a potentially historic winter storm system affecting the United States from the Texas Panhandle to the Northeast.

Looking ahead

As the USMCA review approaches, Mexico faces critical decisions about how to navigate an increasingly complex North American relationship. The week’s events — from prisoner transfers demonstrating cooperation to aviation alerts suggesting ongoing tensions, from FITUR’s diplomatic breakthroughs to Davos clashes threatening trade stability — illustrate the delicate balance required. The Sheinbaum administration must maintain sovereignty while strengthening partnerships essential to economic growth, all while addressing domestic challenges from public health to tourism sector weakness and adapting to shifting geopolitical realities where Canada pursues alternatives to U.S. dependence. The coming weeks will test whether Mexico can successfully walk this tightrope.

This story contains summaries of original Mexico News Daily articles. The summaries were generated by Claude, then revised and fact-checked by a Mexico News Daily staff editor.

The post Mexico’s week in review: Prisoner handover deepens US security ties while trade tensions threaten USMCA appeared first on Mexico News Daily

After more than a decade on the run, Wedding, 44, was arrested Thursday night in Mexico City and flown to California, U.S. officials said.

A member of the FBI’s Ten Most Wanted Fugitives list, Wedding was sanctioned in November by the U.S. Treasury Department, which, along with other U.S. agencies, has collaborated with the Mexican government on the case.

Labeled an “extremely violent criminal,” he was said to be hiding in Mexico. At the time, a reward leading to his arrest and conviction was raised from US $10 million to US $15 million.

U.S. Attorney General Pam Bondi and FBI Director Kash Patel confirmed this week’s arrest, saying Wedding faces charges that include drug trafficking, money laundering, murder and the killing of a federal witness.

Federal prosecutors say he ran a transnational network that moved semitrailer loads of cocaine from Colombia through Mexico to the United States and Canada — at times under the protection of Mexico’s Sinaloa Cartel.

“This is a huge day for a safer North America, and the world, and a message that those who break our laws and harm our citizens will be brought to justice,” Patel wrote Friday morning on X.

At a news conference Friday in Ontario, California, he described Wedding as a “modern day Pablo Escobar” and “modern-day El Chapo” who “thought he could evade justice.”

Mexican officials said Wedding’s capture capped years of cooperation as authorities tracked his operations and his lavish life in hiding.

Security Secretary Omar García Harfuch wrote on X that Patel visited Mexico City on Thursday for meetings with federal security and prosecutorial agencies and then departed “taking with him two priority targets.”

The other person was referred to by Patel only by his last name, Castillo. According to law enforcement sources, that would appear to be fugitive Alejandro Castillo, another man among the FBI’s 10 most wanted for the 2016 murder of his ex-girlfriend in North Carolina. 

Taken into custody in the state of Hidalgo, he allegedly crossed into Mexico two months after the murder but as of Friday was labeled as “captured” on the FBI’s Ten Most Wanted list.

As for Wedding, U.S. and Mexican authorities say he lived in Mexico for more than a decade while directing a network that allegedly imported about 60 tonnes of cocaine a year into Los Angeles and supplied an estimated $1 billion in cocaine annually to Canada.

FBI Director Kash Patel announces the capture of Ryan Wedding, a former Olympian and accused drug lord, after years on the run.

“Just to tell you how bad of a guy Ryan Wedding is, he went from an Olympic snowboarder to the largest narco trafficker in modern times,” Patel said.… pic.twitter.com/GZgAFQqvd5

— CBS News (@CBSNews) January 23, 2026

Investigators say he did so while enjoying a “colorful and flashy” lifestyle, protected by cartel allies and supported by front companies and luxury assets scattered around Mexico City.

Mexican officials announced in December that they had seized about $40 million in high-end racing motorcycles linked to Wedding, along with luxury vehicles, artwork, drugs and two Olympic medals in raids across the capital.

Earlier, U.S. authorities had impounded a rare 2002 Mercedes CLK‑GTR hypercar valued at roughly $13 million.

Patel said the operation was the result of “tremendous cooperation and teamwork with the Government of Mexico,” singling out President Claudia Sheinbaum, García Harfuch and U.S. Ambassador Ron Johnson.

García Harfuch said the joint work, grounded in “respect and shared responsibility,” will continue to target violent groups affecting both countries.

Wedding, who competed in the parallel giant slalom at the 2002 Salt Lake City Olympics and finished 24th, is expected to appear Monday in U.S. District Court for the Central District of California.

Authorities say he also faces separate Canadian drug trafficking charges dating to 2015.

With reports from El Universal, Associated Press and BBC

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In the past week, Canadian Prime Minister Carney has struck “strategic partnerships” with China and Qatar and delivered explosive remarks at the World Economic Forum in Davos.

The consequences could be far-reaching.

At stake is the critical $1.9 trillion USMCA free trade deal. The continental free-trade agreement, which replaced NAFTA in 2020, undergirds much of North America’s economy.

This year, it has come up for review. With official negotiations slated to launch imminently, any action could derail the deal.

As USMCA review nears, Canada branches out

Carney’s whirlwind week began with a trip to Beijing, the first in nearly a decade by a Canadian Prime Minister. There, he announced a “landmark” trade deal with China — unfreezing relations with a country he called “Canada’s biggest security threat” last spring.

The deal, though limited in scope, is a symbolic shot at the U.S.

Canada will lower tariffs on electric vehicles, set in tandem with the U.S. two years ago, in exchange for agricultural market access as well as energy purchase and auto investment discussions.

More important than the deal, however, is its framing.

Carney called his trip to China the “foundation of a new strategic partnership” for the “new world order” — a phrase Chinese officials often use themselves to reference what they consider is American decline. “The multilateral system has been eroded,” he went on to say, and “coalitions of like-minded countries” with “focused areas of cooperation” can replace it.

He followed that with the announcement of another strategic partnership with Qatar, before delivering a forceful speech at Davos. Without naming U.S. President Donald Trump, Carney referenced American hegemony and accused “great powers” of using economic integration as weapons. The rupture, he said, in the “rules-based international order” will “not be restored.”

Leaders from around the world gave a standing applause.

Mark Carney in Davos: This is the speech of a statesman – a riposte to Trump and to western defeatism pic.twitter.com/57ptXIiDrD

— Lionel Barber (@lionelbarber) January 20, 2026

Having received advance notice of the China deal, Trump reacted immediately, first saying that the USMCA is “irrelevant,” then that the U.S. “doesn’t need Canadian products.” He didn’t walk back either comment. 

A divorce seems unlikely for the U.S. and Canada: 75% of Canada’s exports still go to the U.S., while China is a distant second at 4%. However, any breakup’s collateral damage is likely just beginning. 

Bad timing for Mexico

For Mexico, the timing couldn’t be worse. With the imminent launch of the USMCA review, the U.S., Canada and Mexico are set to renew, renegotiate, immediately terminate or sunset the free trade agreement. 

Though it’s early days, a fifth option seems increasingly plausible: The current three-way agreement could fracture into bilateral deals.

While the USMCA is critical to all three countries, Mexico — both the most export-dependent and U.S. market-dependent, with 81% of all exports going to the U.S. — has the most to lose if the pact splinters. About 85% of all Mexican exports enter the U.S. duty-free because of the USMCA. 

By comparison, 30% of all U.S. international trade is from the USMCA. For the United States, this does not amount to as much as Mexico; just 11% of U.S. GDP comes from exports. U.S. business leaders argue that exports alone fail to capture the USMCA’s value; for them, the supply-chain cost savings and integrated continental infrastructure create a major economic advantage for the United States.

Referencing this support among the American business community, Mexican President Claudia Sheinbaum has so far remained optimistic on the deal’s review. “Those who most strongly defend the [USMCA] are American businesspeople,” she said.  

Still, it may not matter.

Trump and his U.S. Trade Representative Jamieson Greer have mulled breaking the USMCA into bilateral agreements since last year. The rationale is clear: Bilateral deals hand the U.S. significant leverage — even at the risk of costly supply-chain disruption.  

Recognizing this, Canada is diversifying. Beyond China and Qatar, Carney has accelerated trade negotiations with ASEAN, Mercosur and at least 10 other countries. On offer are the energy superpower’s rich mineral resources, large domestic market with high per-capita spending, scaled logistics infrastructure, and a ready-to-invest coffer of funds.

Mexico lacks these advantages. American market access is a key pillar of Mexico’s value proposition, especially in a friend-shoring global investment environment. Capitalizing on this, Mexico has carefully aligned itself closer to the U.S. in recent years. 

Those close U.S. ties may now backfire for Mexico.

What are Mexico’s options?

As Canada builds itself out, Mexico is finding itself increasingly locked in. After years courting Chinese manufacturers — notably BYD’s now-postponed $2 billion plant — Mexico raised tariffs on non-free-trade agreement countries (including China) up to 50%. Meanwhile, security cooperation with Washington continues to intensify. 

As the USMCA review begins, expect the U.S. — flush with leverage — to demand more investment screening mechanisms, expanded security operations, stricter rules-of-origin, invasive labor provisions and even foreign policy alignment.

Mexico is now the top buyer of U.S. goods, beating out Canada

Already, the USMCA limits certain foreign policy moves; Article 32.1 restricts free trade deals with “non-market countries” — code for China. But newer U.S. deals go further, introducing “poison pills” that transform agreements “from purely commercial instruments into tools for managing partner countries’ broader foreign policy orientation,” according to analyst Simon Evenett of Global Trade Alert. 

At Davos, Carney offered a framework for escape from this dynamic. “Middle powers must act together because if we’re not at the table, we’re on the menu,” he said. “When we only negotiate bilaterally with a hegemon we negotiate from weakness. We compete with each other to be the most accommodating.” 

“This is not sovereignty,” Carney concluded. “It’s the performance of sovereignty while accepting subordination.” 

Mexico’s choice will be binary: Accept these sovereignty-limiting demands or lose American market access. While Canada can credibly threaten to walk away, Mexico cannot. 

The tradeoff goes unstated. Does deeper U.S. integration bring greater prosperity? President Sheinbaum argues yes — North American unity is essential to “compete with China.” 

Still, her rhetoric may not be enough. 

“Remember, Mark,” Trump said on Wednesday, “Canada lives because of the United States.” Carney’s moves could still invite retaliation; the risks, for both Canada and Mexico, are sky-high. 

As Carney walks his tightrope between Washington and Beijing, Mexico may find its options narrowing. The question is no longer if middle powers can chart their own course, but whether Mexico still has the choice. 

Logan J. Gardner is a Wharton-educated content strategist, writer, photographer and filmmaker based in Mexico City. Sign up to receive his newsletter, Half-Baked, peruse his blog or follow him on Instagram for more.

The post Opinion: Mexico could lose out as Canada risks USMCA with bet on ‘new world order’ appeared first on Mexico News Daily

The border states of Baja California, Sonora and Chihuahua, as well as Durango state, were put on alert due to “a significant drop in temperatures, strong winds and heavy to very heavy rainfall … and possibly snow or sleet.”

At the same time, Cold Front No. 30 will drift over the northeastern part of the country where it will be reinforced by an Arctic air mass by Friday evening. The SMN report said moisture coming in off the northern Gulf of Mexico will combine with the remnants of Cold Front No. 30 to generate rain and showers there. 

The phenomenon in northern Mexico is the westernmost edge of the potentially historic winter storm that is expected to impact the United States this weekend, prompting extreme weather alerts from the Texas Panhandle to the Northeastern Atlantic states.

The rejuvenated cold front is also expected to produce northerly winds gusting up to 70 km/h (42.5 m/h) in northeastern Mexico. Residents of northern Coahuila are being advised of the possible formation of whirlwinds or tornadoes.

In the Northern Plateau and the Central Plateau, including the Valley of Mexico, cold to very cold conditions will produce fog banks in the morning and persist throughout the day. Minimum temperatures could dip as low as minus-5 C (23 F) in Hidalgo, México state, Tlaxcala, Puebla, Veracruz and Oaxaca. Mexico City’s low is projected to reach 0 C (32 F).

🥶❄️⛈️ Hoy se prevén #Lluvias muy fuertes y caída de #Nieve o #Aguanieve en regiones de #BajaCalifornia, #Sonora, #Chihuahua y #Durango. Más información en ⬇️https://t.co/agFhcoEB8W pic.twitter.com/9scC2Tri7D

— CONAGUA Clima (@conagua_clima) January 23, 2026

In response to the winter storm conditions, the Federal Electricity Commission (CFE) reported that it has sufficient capacity available to maintain the supply of electricity across the country.

The CFE said it is coordinating with the Energy Ministry to establish strategic actions to protect the continuity of the electricity supply. The CFE also activated its Emergency Response Steering Group, which will remain in permanent session to monitor the evolution of the storm.

The National Coordination of Civil Protection also issued an advisory, urging residents across the country to take preventative measures throughout the weekend. 

“To mitigate the effects of these weather systems and safeguard physical safety and property, specific recommendations are issued. If using gas heaters or fireplaces, maintain adequate ventilation to prevent carbon monoxide poisoning and turn them off before going to sleep; protect and insulate external pipes to prevent frost damage and secure sheet metal roofs, windows, awnings and objects that could be dislodged by wind gusts exceeding 60 km/h (37.3m/h).”

Elsewhere, the Regional Hydrometeorological Center in the state of Yucatán forecast stable weather conditions, warm temperatures up to 34 C (93 F) and isolated showers in coastal Quintana Roo, eastern Yucatán and southern Campeche, with wind gusts of up to 40 km/h.

With reports from El Universal, La Jornada and El Diario de Yucatán

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The monarchs visited Mexico’s pavilion at FITUR, hosted in Madrid this year, following their inauguration speech. They were greeted by Mexico’s Tourism Minister Josefina Rodríguez Zamora, Mexico’s Ambassador to Spain Quirino Ordaz, as well as other Mexican officials and cultural representatives.

For the fair’s 46th edition, Mexico has been featured as FITUR’s partner country, presenting a historic program that includes tourist destinations in all 32 states. Boasting the largest stand space in the America’s section, Mexico aims to speak to a global tourism market by emphasizing the essence of Mexican culture.

During her Thursday morning press conference, President Claudia Sheinbaum referred to the monarch’s visit to Mexico’s pavilion as “symbolic.”

“They were accompanied by representatives of the Indigenous communities. It’s symbolic,” Sheinbaum said. “It seems symbolic that the king and queen of Spain have come to recognize the Indigenous peoples of today [at FITUR] … We will insist on the importance of this recognition, because it heals wounds.”

The monarchs greeted the large Mexican delegation on a stage decorated for the occasion and reportedly showed great interest in Mexico’s proposals during a friendly conversation with Mexican officials.

The Spanish royals have not had contact with Mexican officials since 2019, when former President Andrés Manuel López Obrador demanded an apology in 2019, for abuses faced by Indigenous peoples during the conquest of Tenochtitlán in 1521, preceding  to Spanish colonization.

Spain “vigorously” rejected the request. While economic, social and cultural ties between the two countries run deep, political ties turned frosty after the falling out.

Meanwhile, Tourism Minister Rodríguez said she appreciated the royal’s appearance at Mexico’s pavilion amidst the tragedy that recently hit the country after a passenger train derailed in the province of Córdoba, killing dozens of people.

“I was deeply grateful that they came to visit us in spite of this situation,” she said. Rodríguez told the king and queen about the role the Indigenous communities play in Mexico’s tourism industry, she said, and how tourism can be “a source of prosperity for communities.”

With reports from El Heraldo de México and La Jornada

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At her morning press conference, Sheinbaum was asked whether the “clash” between the viewpoints expressed by Canadian Prime Minister Mark Carney and U.S. President Donald Trump in speeches at the World Economic Forum (WEF) meeting placed “the life” of the USMCA at risk.

“We are going to work so that it doesn’t break,” the president said of the agreement that governs trade worth around US $2 trillion per year.

“And we believe it’s a good idea for the three countries to maintain the trade agreement,” said Sheinbaum, who noted that Economy Minister Marcelo Ebrard will travel to Washington D.C. next week “to continue working on trade issues” with U.S. officials.

Even if Mexico, the United States and Canada don’t agree to extend the USMCA during this year’s review process, the pact would not be terminated until 2036. An agreement to extend the pact would ensure its survival until at least 2042. Mexico and Canada’s trade relationships with China will likely be discussed during bilateral and trilateral negotiations, along with things such as rules of origin and the United States’ trade deficit with each of its neighbors.

Sheinbaum remains optimistic that the review process will go well, despite the differences between the U.S. and Canadian leaders.

On Thursday morning, she told reporters that she wouldn’t describe the expression of different opinions by Carney and Trump in Davos, Switzerland, over the past two days as a “clash of discourse.”

“They’re simply different points of view regarding what is happening internationally,” said Sheinbaum, who on Wednesday endorsed Carney’s WEF speech, describing it as “very good” and “very much in tune with the current times.”

Carney criticizes use of ‘tariffs as leverage’

In his speech at the annual WEF meeting on Tuesday, Carney took aim at Trump without mentioning the U.S. president by name.

The Canadian prime minister said that “for decades, countries like Canada prospered under what we called the rules-based international order,” even though “we knew the story of the international rules-based order was partially false” due to factors including that “trade rules were enforced asymmetrically.”

“… This fiction was useful,” Carney said.

“And American hegemony, in particular, helped provide public goods: open sea lanes, a stable financial system, collective security and support for frameworks for resolving disputes.”

This speech *is* one for the history books. But that’s less a compliment, than a coda.

Carney has given us the words to mark the end of the ‘rules-based order’…by acknowledging it never really existed.

It was a collective illusion. That now is over. pic.twitter.com/H4gWysDBmH

— Carole Cadwalladr (@carolecadwalla) January 20, 2026

Canada, Carney continued, “participated in the rituals” of the the rules-based international order, “but this bargain no longer works.”

“Let me be direct: We are in the midst of a rupture, not a transition,” he said.

“Over the past two decades, a series of crises in finance, health, energy and geopolitics have laid bare the risks of extreme global integration,” Carney said.

“But more recently, great powers have begun using economic integration as weapons. Tariffs as leverage. Financial infrastructure as coercion. Supply chains as vulnerabilities to be exploited,” said Carney, who was widely interpreted to be referring to the United States under Trump.

In that context — one that includes tariffs Trump imposed on a range of Canadian goods, and Mexican goods, in defiance of the free trade framework the USMCA provides — the prime minister noted that Canada has been diversifying its security and trade relationships.

“We are rapidly diversifying abroad. We’ve agreed a comprehensive strategic partnership with the EU, including joining SAFE, the European defense procurement arrangements. We have signed 12 other trade and security deals on four continents in six months,” Carney said.

“In the past few days, we have concluded new strategic partnerships with China and Qatar. We’re negotiating free trade pacts with India, ASEAN, Thailand, Philippines and Mercosur,” he said.

Carney said last Friday that “the world has changed” and that improved trade ties with China — the United States’ main strategic rival — sets Canada up “well for the new world order.”

Still, the United States is by far Canada’s largest trade partner, and the Canadian government remains firmly committed to the USMCA despite Trump’s rhetoric and its decision to ease trade barriers on China, at a time when Mexico is taking the opposite approach.

While Mexico’s decision to increase tariffs on Chinese goods could benefit it in the USMCA review process, Canada’s decision to ease duties on certain products from the East Asian nation — including on a quota of 49,000 electric vehicles per year — could complicate its trade talks with the United States.

Trump responds

Trump hit back at Carney in his WEF address on Wednesday, calling the Canadian prime minister ungrateful.

Referring to a proposed missile defense system for the United States, he said:

“We’re building a golden dome that’s going to, just by its very nature, going to be defending Canada. Canada gets a lot of freebies from us, by the way. They should be grateful also. But they’re not. I watched their prime minister yesterday. He wasn’t so grateful, they should be grateful to us. Canada lives because of the United States. Remember that Mark, the next time you make your statements.”

Trump: “Canada lives because of the United States”

Canada lives because the United States failed to annex us in 1775 and 1812. pic.twitter.com/ZlS9xm1d3f

— Riley Donovan (@valdombre) January 21, 2026

Trump also spoke glowingly about tariffs, which he has previously described as “the most beautiful word … in the dictionary.”

“With tariffs, we’ve radically reduced our ballooning trade deficit, which was the largest in world history,” he said.

Trumps’ remarks in Davos came eight days after he asserted that the USMCA provides “no real advantage” to the United States and is “irrelevant” to him.

“I want to see Mexico and Canada do well, but the problem is we don’t need their product,” he said Jan. 14.

“… We don’t need cars made in Canada, we don’t need cars made in Mexico, we want to make them here. And that’s what’s happening.”

Trump also said that having the USMCA or not “wouldn’t matter” to him.

Trump says he doesn’t care about USMCA; Sheinbaum says US businesses do

“I think they want it, I don’t really care about it,” said the U.S. president, who in the past has floated the possibility of the United States entering into bilateral trade deals with each of Mexico and Canada.

While Trump claims that the United States doesn’t need Canadian goods, The New York Times pointed out in a report published on Tuesday that “the majority of the oil the United States imports comes from Canada.”

Companies in the U.S. across a range of sectors, including automakers, are dependent on inputs that are made in Mexico. In light of the economic integration across North America, Sheinbaum has said she is “very optimistic” about the USMCA review.

Sheinbaum to seek calls with Trump and Carney 

Sheinbaum told reporters on Thursday morning that she hasn’t recently spoken with Carney, but would seek a call with him.

“We’re going to try to have a conversation, and of course with President Trump [as well],” she said, adding that they would discuss “all the negotiations that have to do with the trade agreement.”

Carney visited Mexico last September, at which time he and Sheinbaum pledged to deepen ties and work to strengthen the USMCA. Earlier this week, Canadian Governor General Mary Simon traveled to Mexico and met with Sheinbaum at the National Palace.

Sheinbaum spoke to Trump last week, but their conversation focused on security issues.

After the 15-minute call, Sheinbaum said she and Trump agreed to another call soon in order to discuss “other issues,” including trade.

In a future trade-focused call with Trump, Sheinbaum’s main aim — it would appear — will be to convince her U.S. counterpart of the relevance and vitalness of the USMCA, including by emphasizing that the United States does indeed need Mexican (and Canadian) goods.

By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)

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Governor Marina del Pilar Ávila on Wednesday confirmed that Carlos Torres is the subject of a probe that stemmed from an anonymous complaint implicating her ex-husband in a plot to allow a faction of the Sinaloa Cartel to operate in the northern border state.

After referring reporters to a statement issued by Torres (in which he called the accusations “slanderous”), Ávila said she is confident that the FGR “will conduct a thorough investigation and the facts will be clarified.”

Last May, the U.S. government revoked the governor’s and her then-husband’s tourist visas. At the time, Avila said the decision by the U.S. government was “neither an accusation nor an investigation.” The news was significant, however, as it represented the first time in recent history that a sitting Mexican official was denied entry to the U.S. In following months, dozens of Mexican politicians had their U.S. visas revoked by the Trump administration.

According to N+, the news division of the Grupo Televisa-Univision media conglomerate, the Organized Crime Prosecutor’s Office received a complaint on June 11, 2025, that Torres received US $150,000 a month from Pedro Ariel Mendivil García, former security  minister for the Mexicali City Council, to allow the Los Rusos Cartel to operate in the northern state. 

By then, Torres had stepped down from his honorary posts and in October the governor and he began divorce proceedings.

N+ identified Luis Alfonso Torres, Carlos’ brother, as the alleged leader of the criminal network under investigation, reporting that Luis “directed the administrative operations of illicit funds through companies and support for political campaigns in Mexico.”

The network allegedly carried out extortion by seizing merchandise or shipments and demanding millions of dollars for their release at state customs offices. The payments were then allegedly sent to a local notary. The network is also accused of trafficking in weapons, money and drugs.

Among the names mentioned in the file as subjects of investigation are high-ranking state officials from the Tax Administration Service (SAT) and Customs, as well as mayors and municipal leaders. Also appearing is Sen. Armando Ayala Robles, the former mayor of Ensenada, Baja California.

Carlos Torres was a member of the National Action Party (PAN) for 20 years during which time he was a state congressman (2016-2019), competed to be mayor of Tijuana in 2010 and served as a federal deputy (2006-2009). 

In February 2025, Torres resigned from the PAN and joined Morena, the dominant party in Mexico. Ávila and Sen. Ayala are also members of Morena.

With reports from El País, N+, Proceso and Infobae

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At President Claudia Sheinbaum’s morning press conference, García Harfuch said that “an individual nicknamed El Botox” had been detained “a few minutes ago” in an operation carried out by federal and state security forces in Michoacán.

En un operación conjunta de @Defensamx1 @SEMAR_mx @SSPCMexico @FiscaliaMich y autoridades del estado de Michoacán fue detenido el Carlos Alejandro N “Botox” objetivo prioritario y generador de violencia en Michoacán. Principal extorsionador de limoneros y responsable de varios… pic.twitter.com/HlpOlEqwVt

— Omar H Garcia Harfuch (@OHarfuch) January 22, 2026

“El Botox” is César Alejandro Sepúlveda Arrellano, alleged leader of Los Blanco de Troya, a crime group described in media reports as the armed wing of Los Viagras, a criminal organization affiliated with the Jalisco New Generation Cartel.

García Harfuch said that Sepúlveda is “responsible” for extorting lime growers and other agricultural producers, and for homicides, including that of Bravo, who was killed last October.

He said that the suspect attempted to escape from the address authorities raided on Thursday morning, but a female security agent detained him. The arrest reportedly took place near Apatzingán, a municipality in the notoriously dangerous Tierra Caliente region of Michoacán.

García Harfuch said that “a woman very close to” Sepúlveda was arrested around midnight on Thursday. He noted also that three people within Sepúlveda’s “close circles” were detained last week.

On social media, García Harfuch wrote that “El Botox,” who has previously spent time in prison, was a “priority target” of authorities and a “generator of violence in Michoacán,” one of Mexico’s most violent states.

The Michoacán Attorney General’s office accuses Sepúlveda of both planning the murder of Bravo and carrying it out. A warrant was issued for his arrest before he was taken into custody on Thursday morning. The Milenio newspaper reported that Sepúlveda recently posted videos to social media in which he asserted that he didn’t murder Bravo and that he was in fact a defender of the citrus industry in Michoacán.

The arrest of the suspect came three months and one day after Bravo, president of the Apatzingán Citrus Growers Association in Michoacán, was found dead in the front seat of his pick-up truck, killed by a bullet to the back of his head.

The next day, García Harfuch announced that a man identified as Rigoberto “N” had been detained.

“As a result of investigative work following the homicide of Bernardo Bravo, leader of citrus growers in the region, an operation was carried out in Michoacán … during which Rigoberto “N” was arrested,” he wrote on social media on Oct. 21.

“The detainee is identified as one of those responsible for collecting extortion payments from lime producers in Apatzingán,” García Harfuch wrote.

Though Rigoberto “N” was not charged with the murder of Bravo, he is suspected of playing a role in his death.

Before he was murdered, Bravo had been urging lime growers in the Tierra Caliente region of Michoacán to resist the extortion scheme that has long plagued producers in the area.

The US Treasury Department announced sanctions against ‘El Botox’ last year

Last August, the U.S. Department of the Treasury’s Office of Foreign Assets Control announced that it was “sanctioning two notorious Mexican cartels — Carteles Unidos (a.k.a. ‘United Cartels’) and Los Viagras — and seven affiliated individuals linked to terrorism, drug trafficking, and extortion in Mexico’s agricultural sector.”

One of the sanctioned individuals was Sepúlveda.

“César Alejandro Sepúlveda Arellano, a.k.a. ‘El Botox,’ is a Los Viagras leader responsible for the killing of a citrus producer,” the Treasury Department said in an Aug. 14 statement, released more than two months before Sepúlveda allegedly murdered Bravo.

In the same press release, Treasury wrote that “Los Viagras has extorted avocado and citrus growers, cattle ranchers, and entire towns to generate revenue.”

Highway blockades reported after arrest 

Highway blockades set up by armed civilians were reported at three different points in the Tierra Caliente region of Michoacán following the arrest of Sepúlveda. Two of the blockades were set up in Apatzingán and one in the neighboring municipality of Buenavista.

It is relatively common in Mexico for crime groups to set up highway blockades in response to arrests, and to hinder additional actions against their members. Sometimes the blockades include burning vehicles, but that didn’t appear to be the case in the Tierra Caliente region on Thursday morning.

With reports from Reforma, El Universal, Milenio and Latinus

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INEGI also published updated data for November showing 1.2% annual growth and 0.1% month-over-month growth.

According to Gabriela Siller, director of economic analysis at Banco Base, the data indicates that the Mexican economy recorded annual growth of 0.65% in 2025, a marked slowdown compared to the 1.5% expansion in 2024. Siller also said that the data — which is subject to revision — indicates the economy grew 1.36% in annual terms in the fourth quarter of last year and 0.97% compared to the previous three-month period.

INEGI’s preliminary data shows that Mexico’s secondary sector (manufacturing and construction) grew 1.2% annually in December, while the tertiary sector (services) expanded 2.9%. INEGI didn’t provide data for the primary sector (agriculture and mining).

On a month-over-month basis, the secondary sector grew 0.1% in December while the tertiary sector expanded 0.2%.

The overall month-over-month growth rate of 0.2% in December was the best result for the Mexican economy in the final month of the year since 2023. In December last year, the economy contracted 1% compared to the previous month, according to final data.

Other need-to-know economic data 

• The Mexican peso was trading at 17.49 to the US dollar at 1:20 p.m. Mexico City time, according to Bloomberg. The peso is stronger now than at any point in 2025.
• Mexico’s headline inflation rate was 3.69% in December, the lowest end-of-year level in five years.
• The Bank of Mexico’s benchmark interest rate is currently set at 7%. The bank’s board will hold its next monetary policy meeting on Feb. 5.

With reports from Expansión and El Economista 

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The announcement, made during the president’s morning news conference at the National Palace, represents one of the most significant infrastructure investments of her administration and directly responds to widespread complaints about road conditions across the country.

 

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“We conducted a thorough review of the highways and gathered requests from citizens during our travels throughout the country,” Sheinbaum said.

The National Highway Conservation and Mega Bachetón Program 2026 will cover 18,000 kilometers of toll-free federal highways, or just under half (42%) of the country’s toll-free roadways. The initiative expects to create approximately 100,000 jobs throughout 2026.

Regional breakdown

The program divides the country into five operational regions, each targeting key transportation corridors:

Northwest (Baja California, Baja California Sur, Chihuahua, Durango, Sonora and Sinaloa): 8.659 billion pesos to repair 3,170 kilometers covering the Pacific Corridor, Mexico-Nogales and Mazatlán-Matamoros and Gulf-North routes.

Northeast (Coahuila, Nuevo León, San Luis Potosí and Zacatecas): Covering the Mexico-Nuevo Laredo, Querétaro-Ciudad Juárez, Veracruz-Monterrey and Gulf-Huasteca routes.

Central-West (Aguascalientes, Colima, Guanajuato, Jalisco, Michoacán, Nayarit and Querétaro): Including the Manzanillo-Tampico and Guadalajara-Zacatecas routes.

Central Region (México state, Guerrero, Hidalgo, Morelos, Puebla and Tlaxcala): Targeting the Acapulco-Tuxpan, Center-Gulf, Acapulco-Veracruz, Mexico-Veracruz and High Plateau Corridor highways.

South-Southeast (Campeche, Chiapas, Oaxaca, Quintana Roo, Tabasco, Veracruz and Yucatán): Addressing the Puebla-Progreso, Puebla-Tapachula, Trans-Isthmus Circuit and Yucatán Peninsula routes.

Technology and efficiency

To optimize resources and reduce costs, the government has invested in state-of-the-art repaving equipment. The program will deploy 31 paving trains and 62 specialized pothole repair units.

Ten paving trains began operations in 2025, with another 10 set to start work between January and February 2026. An additional 11 machines will be purchased to ensure each region has dedicated equipment.

The modern machinery can advance up to one kilometer per day, significantly improving efficiency. The government is purchasing materials directly and using its own equipment to strengthen the program’s technical capacity and control costs.

A key innovation is a digital monitoring system designed to detect and repair potholes within 72 hours across the 43,000-kilometer toll-free network.

Timeline

The program officially runs from January through December 2026, with work already underway in some regions. The initiative includes both routine maintenance — filling potholes, leveling surfaces, clearing vegetation and cleaning drainage systems — and more extensive periodic conservation involving milling and applying five-centimeter asphalt layers.

The massive undertaking represents a significant test for the Sheinbaum administration’s ability to deliver on infrastructure promises. With Mexico preparing to co-host the 2026 FIFA World Cup alongside the United States and Canada, improved highway conditions will be critical for both domestic travel and international visitors navigating between host cities.

Mexico News Daily

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