¡Hola amigos! It's hard to see Mexico's World Cup run come to an end. But watching the world fall in love with the Mexico we've all come to love – the warmth, the hospitality, the joy, and the incredible spirit of its people – has been something really special.

This week, Sheinbaum is promising answers about the U.S.'s alleged role in the arrest of El Mayo Zambada, Nubank announced a $4.2 billion investment in Mexico, and what's really happening with the USMCA after last week's headlines.

Plus, what you need to know before terminating household staff, health insurance options for families, and the Mexican remedy abuelitas have trusted for generations.

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❓México Trivia

What traditional Mexican wine predates the arrival of Spanish grape wine?

Answer at the bottom of the newsletter.

📣 México News Roundup

🇲🇽 President Sheinbaum said Mexico will release a report today on the arrest of Ismael "El Mayo" Zambada to clarify the operation and alleged U.S. involvement.

🤝 Mexico’s Economy Secretary will travel to Washington on Wednesday to prepare for the next round of USMCA review talks after the U.S. declined to approve a 16-year extension of the trade pact.

💳 President Sheinbaum announced Nubank will invest $4.2 billion USD in Mexico from 2026 to 2030 to expand its digital banking operations.

📈 Analysts say Mexico's economy is entering a gradual recovery after the Leading Economic Indicator rose for the 14th straight month to its highest level since 2022.

🇨🇭 Swiss President Guy Parmelin arrived in Mexico on Monday for an official visit focused on trade, investment, and economic cooperation.

🚛 Mexico reported the world's second-highest truck driver vacancy rate with 14% of positions unfilled. 

🌧️ President Sheinbaum said flood prevention projects in eastern State of Mexico are 90% complete and will be finished in the next 15 days.

🛳️ Mexico sent two Navy ships with more than 2,000 cubic meters of humanitarian aid plus 127 additional rescue personnel and seven specialized dogs, to Venezuela.

🚑 President Sheinbaum said Mexico's rescue team in Venezuela saved two people, recovered 80 bodies and one dog, and provided 1,988 medical treatments. 

🚴 Mexican cycling star Isaac del Toro won Stage 2 in his Tour de France debut, giving Mexico its first stage win at the race in 36 years. Watch the finish-line moment.

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🍎 Your Health Pulse

Health Insurance Options for Families in Mexico

It only takes one unexpected trip to the hospital in Mexico to remind you how expensive healthcare can be without insurance. Add a spouse or kids to the equation, and those costs can multiply fast.

And even when it’s not an emergency, families still need checkups, medications, immunizations, and routine care throughout the year.

When it comes to protecting your family in Mexico, you have more choices than you might think. Public healthcare, private Mexican insurance, and international plans all have different costs, coverage, and restrictions.

Read more

📍Immigration Essentials

The Rules for Letting Household Staff Go in Mexico

Ending an employment relationship in Mexico requires caution – labor laws are strongly pro-worker, and skipping formalities can leave you liable for expensive claims.

Severance Obligations 

There are two terms you should understand. 

A finiquito is the final payment of earned benefits, such as unpaid wages, unused vacation, vacation premium, and proportional aguinaldo. 

Liquidación is the larger severance payment owed when an employee is dismissed without documented just cause.I 

Unless an employee resigns voluntarily or is dismissed with documented just cause, termination requires severance (Liquidación).

This includes 3 months’ salary, 20 days per year worked, and prorated vacation and Christmas bonus (aguinaldo). With 15+ years of service, add a seniority premium of 12 days per year (capped at 2× the minimum daily wage). 

Severance should be paid at the time of dismissal. Delays can expose the employer to additional wage claims. Always have the employee sign a settlement receipt (finiquito), a termination letter, and ensure two witnesses are present.

When Severance Is Not Required

If the employee resigns or is dismissed for just cause – such as repeated absences, dishonesty, violence, refusal to follow instructions, or showing up intoxicated – only accrued benefits are due.

Grounds must be documented, and notice must be provided in writing at the time of dismissal, ideally with witnesses. Without this paperwork, the law presumes wrongful termination, making full severance payable.

Employers must also act quickly. Under Mexican labor law, an employee must generally be dismissed within 30 days of the employer becoming aware of the misconduct. Missing that deadline can weaken a just-cause dismissal.

Special Situations Worth Noting

• Selling or no longer renting a home: Existing staff must be paid severance unless the new owner/tenant formally assumes their contracts. If they do, the new owner or tenant also assumes the employee's years of service for future severance calculations.

• Death or retirement of an employee: Severance must be paid to the worker or their heirs.

• Unilateral changes: Cutting hours, pay, or job duties without the employee’s consent counts as termination and triggers severance.

Documentation & Contracts

A clear, signed contract specifying wages, benefits, and job duties is essential. If an employment agreement is not in writing, Mexican labor law generally favors the employee.

Keep proof of all payments (bank transfer receipts or signed vouchers). These records are critical if the dismissal is challenged in labor court.

While not legally required, consulting a labor lawyer is highly recommended. They can draft contracts, prepare dismissal notices, and reduce the risk of costly litigation.

🧩 Life in México

The USMCA: What's Mexico's Next Move?

On July 1, the U.S. declined to approve a 16-year extension of the USMCA (known in Mexico as T-MEC) during the agreement's first mandatory six-year review. This prompted headlines suggesting the North American trade pact was ending.

That's not the case. The USMCA remains fully in force, with no immediate changes to tariffs, trade rules, or cross-border business.

The confusion stems from the treaty's "sunset clause." When the USMCA replaced NAFTA in 2020, it was set to run through 2036, with required reviews every six years. If all three countries agreed during this year’s review, it would have been extended through 2042.

Instead, the U.S. said it would not extend the agreement in its current form. Washington says it wants to modernize it by addressing trade imbalances, strengthening North American manufacturing, and tightening rules around Chinese content in regional supply chains.

That moves the pact into annual reviews through 2036, though it can still be extended at any point if the U.S., Mexico, and Canada all agree.

Mexico expected the decision, so officials weren't caught off guard. Instead, they were already preparing a proposal for the next round of USMCA talks on July 20.

Mexico's pitch is simple: if the U.S. wants to reduce its trade deficit and rely less on China, the answer isn't restricting trade inside North America. It is producing more inside North America.

Mexico’s Economy Secretary Marcelo Ebrard says North America should produce more of the pharmaceuticals, semiconductors, electronics, auto parts, and other strategic products it currently imports from overseas.

He argues that building those supply chains within the region would strengthen all three economies while reducing dependence on Asia.

Rules of origin are also expected to be part of the July 20 talks. These determine how much of a product must be made in North America to qualify for tariff-free trade. Mexico has said it is open to strengthening those rules, as long as the changes do not raise costs for companies already operating in the region.

The bigger concern isn't the treaty itself. It's uncertainty. 

Annual reviews give Washington regular opportunities to reopen negotiations, making it harder for companies to commit to new factories and long-term investments.

For Mexico, where manufacturing and foreign investment are major economic drivers, that uncertainty could become the biggest challenge.

Health insurance in Mexico doesn’t have to be confusing.

Skip the endless searching and connect directly with a vetted broker who can match coverage to your needs. Peace of mind starts with the right policy.

Find your broker today

🪷 Viva Wellness

The Healing Power of Mexican Arnica

If you've ever used arnica for bruises or sore muscles, chances are it was European Arnica (Arnica montana). But did you know Mexico has its own version?

Growing wild in Mexico's high-altitude pine-oak forests, árnica mexicana (Heterotheca inuloides) is one of the country's best-known medicinal plants.

This bright yellow daisy-like flower has been a cornerstone of traditional Mexican medicine for generations.

Known as tabaquillo, or "little tobacco," it's named for its earthy scent and slightly bitter flavor.

Unlike the European version, which stays strictly on the skin, Mexican arnica is a full-body remedy in the hands of traditional healers. 

Curanderos brew it into teas to calm inflammation, ease cramps, or treat digestive issues. They use it in poultices for swollen joints and burn the dried flowers during limpias, spiritual cleanses meant to clear “mala energía.” The fragrant smoke is believed to purify both body and spirit.

What truly makes Mexican arnica special is that it contains cadinane-type sesquiterpenoids – which European arnica lacks. It also has a higher concentration of flavonoids, such as quercetin and kaempferol. These substances contribute to Mexican arnica’s anti-inflammatory, antifungal, and antioxidant effects.

Distilled into essential oil, it becomes a powerful topical treatment for bruising, swelling, and old injuries. 

In traditional Mexican pharmacopeia, it’s used in liniments and salves for sprains, dislocations, and hyperextensions.

The oil also serves as an effective antifungal and antiseptic wash for skin rashes, ringworm, and heat rashes. 

A word of caution: Mexican arnica is very potent.

As wise abuelitas warn, "Lo que cura también puede dañar" (What heals can also harm). It should only be taken internally with the guidance of a knowledgeable practitioner.

🎉 ¡Vamos! Events

Festival Internacional del Bolero y Jazz 2026 – July 10–12, Veracruz & Xalapa, Veracruz
More than 200 national and international artists come together for three days of free performances celebrating two of Latin America’s most enduring musical traditions. Concerts take place simultaneously at Teatro de la Reforma and Teatro del Estado, with highlights including Los Panchos, Rodrigo de la Cadena, Héctor Infanzón, and international jazz guests. More info here.

XIX BBVA Mexico City Half Marathon – July 12, Mexico City
Thousands of runners take to the streets for Mexico City’s premier half-marathon, following a 21.1-kilometre course from the Hemiciclo a Juárez to the Angel of Independence along some of the capital’s most iconic avenues. The race attracts 30,000 participants. More info here.

Feria del Carmen 2026 – July 16–31, Ciudad del Carmen, Campeche
Ciudad del Carmen’s major annual fair returns around the feast of the Virgen del Carmen, the city’s patron saint, with religious traditions, concerts, rides, food, and family events. Free shows at the Concha Acústica include Natalia Jiménez, Bryndis X Siempre, and Yuridia. More info here.

Copa México World Aquatics 2026 – July 16–19, Zapopan, Jalisco
Elite international diving returns to Guadalajara this summer as the Centro Acuático Metropolitano hosts the newly created Copa México. Featuring trampoline and platform competitions, the event brings many of the world's top divers back to Jalisco and restores Mexico's place on the World Aquatics calendar after this year's cancellation. More info here.

Gala Internacional del Mariachi – July 17, San Miguel de Allende, Guanajuato
Three acclaimed mariachi ensembles share the stage at the historic Teatro Ángela Peralta for an evening celebrating one of Mexico’s defining musical traditions. More than 50 musicians and singers will perform classic and contemporary mariachi repertoire in what organizers hope will become an annual cultural tradition. More info here.

Festival Cantoya "Fiesta y Color" 2026 – July 17–19, Paracho, Michoacán
Hundreds of handcrafted paper hot-air balloons light up the skies above Paracho during this annual festival celebrating one of Michoacán’s most colorful traditions. Guest artisans from Brazil and Colombia join Mexican balloon makers for three days of live music, cultural performances, local cuisine, and family-friendly activities. More info here.

Feria Nacional Francisco Villa 2026 – July 17–August 2, Durango City
Durango's flagship summer fair returns with 17 days of concerts, cultural events, equestrian competitions, livestock exhibitions, regional cuisine, carnival rides, and family attractions. Named for revolutionary leader Pancho Villa, the celebration blends traditional Durango culture with major headline performances and is expected to attract more than 1.5 million visitors over the course of the festival. More info here.

💡 Say It in Spanish

Most basic Spanish speakers know ayer, mañana, and noche. Here are a few more time-of-day words that are just as useful.

• Amanecer - Dawn / sunrise
   Salimos al amanecer. – We left at dawn.

• Mediodía - Noon / midday
  Nos vemos al mediodía. – See you at noon.

• Atardecer - Sunset / late afternoon
   Ese restaurante tiene la mejor vista al atardecer. – That restaurant has the best sunset view.

• Anochecer - Nightfall
   Hay que regresar antes de anochecer. – We should head back before dark.

• Madrugada - The wee hours of the morning
   Llegué de madrugada. – I got home in the middle of the night.

That last one is especially handy. Madrugada isn't "morning" in the cheerful coffee-and-concha sense. It's more like 2 a.m., quiet streets, and questioning your life choices.

🎯 Trivia Answer

A: Colonche.

Every summer, bright red tunas growing on the edges of nopal paddles ripen across central and northern Mexico. For more than 2,000 years, Indigenous communities have turned the fruit into a traditional cactus wine called colonche.

But not every red tuna becomes colonche. The wine is made specifically from tuna cardona (Opuntia streptacantha), thanks to its high sugar content and natural wild yeasts that kickstart fermentation.

Producers crush the peeled pulp, strain out the seeds, and boil the juice — sometimes adding cinnamon — before leaving it to ferment for a few days. The result is a lightly sparkling, slightly viscous wine with an alcohol content of 2% to 6%.

The process has changed little over the centuries.

Traditionally, the juice was simmered in clay pots and strained through ixtle fiber from maguey. A splash of an older batch was often added to help start the next fermentation.

Today, colonche is still made across the cactus country of Zacatecas, San Luis Potosí, Guanajuato, Aguascalientes, and parts of Jalisco. It appears during the July to October harvest season, then disappears just as quickly.

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