Mexico stands as one of the world's most-sued nations by foreign capital, facing 23 active investor-state arbitrations as of June 30, about 2 months ago. These legal challenges, which include two suspended and three discontinued cases, primarily target critical minerals and energy sectors. Globally, 56 investment arbitrations were initiated in 2025, with approximately 80 percent brought against developing economies. Mexico tied with Ukraine for the most new investor-state cases in 2025, each facing five, and tied with Russia in 2024 with four cases each. In 2023, the Mexican state confronted ten such disputes.
Capital's Grip Tightens
This legal pressure coincides with ongoing trade talks between Mexico City and Washington, where US duties on Mexican goods remain a central point of contention. US duties on Mexican steel and aluminum stand at 50 percent. Cars and auto parts face a 25 percent duty if they do not qualify under the USMCA agreement or its origin rules. A restructuring between April and June 2026 softened some of this, making USMCA-qualifying goods pay the metals duty only on their non-US content.
Mexican President Claudia Sheinbaum confirmed a phone call with Donald Trump on Wednesday, 2 days ago, describing it as “very good” and noting that “the possibility of an agreement is advancing well.” Sheinbaum, however, also questioned the unilateral nature of US demands. “I would like to see a report on what the United States government does inside the United States,” she stated at her press conference on Thursday, 1 day ago, adding, “We in Mexico are acting. But what happens on the other side?” This highlights the inherent imbalance in negotiations between an imperial power and a developing economy.
The United States declined to renew the USMCA in its current form on July 1, about 2 months ago, pushing the trade agreement into a system of annual reviews that could extend through 2036. Three formal rounds of talks have occurred since July. The fourth formal round is scheduled for September 28-29 in Washington, a week later than initially planned. US Trade Representative Jamieson Greer leads for Washington, while Economy Secretary Marcelo Ebrard leads for Mexico City. US Commerce Secretary Howard Lutnick traveled to Mexico earlier this month as these talks intensified, signaling the urgency for US capital to secure favorable terms. Reuters reported on September 11, 7 days ago, that both sides seek a framework before the US midterm elections in November.
The State's New Role in Digital Extraction
Domestically, the Mexican state is moving to expand the reach of financial capital through new legislation. The Digital Economy Law for Digital and Electronic Payments was sent to Congress on September 8, 10 days ago, and published in the parliamentary gazette the same day. This bill would empower the finance ministry to designate sectors where accepting digital payments becomes compulsory. It also mandates that public sector entities accept digital payments from its inception.
After the bill's approval, the finance ministry would have fifteen working days to name the initial sectors, with sector regulators then setting their own timelines. The legislation does not reform Mexico's existing instant payment platforms, CoDi or DiMo. It does, however, integrate the digital population registry into the financial system as a trust mechanism. The central bank gains new duties related to digitalization and financial inclusion, further solidifying the state's role in facilitating financialization.
Mexico still operates heavily on cash, a reality that this policy aims to fundamentally alter. The stated logic behind the bill is that acceptance drives usage, rather than the reverse. Mexican officials frequently cite Brazil's instant payment system as a comparison, which moved from launch to near-universal use in approximately four years due to initial widespread acceptance. This push for digital payments, while framed as “inclusion,” primarily serves to formalize transactions, making them trackable and subject to fees, ultimately expanding the base for surplus extraction by financial corporations.