Mexico after the blow against "El Mencho": Security situation, World Cup risks and trade prospects

In February 2026, Mexican armed forces succeed in arresting and eliminating Nemesio Oseguera Cervantes ("El Mencho"), the leader of the country's most powerful cartel. This is immediately followed by coordinated acts of retaliation and demonstrations of power: roadblocks, arson attacks and armed clashes between security forces and cartel members, claiming around 60 lives. Mexico's precarious security situation is thus temporarily back in the international spotlight. The government is striving to restore stability quickly, not least with a view to the upcoming 2026 World Cup. A sustained escalation would further fuel the debate that has already arisen about possible venue changes. At the same time, the operation strengthens the Mexican government's position vis-à-vis the United States. The elimination of a globally wanted cartel leader is intended to demonstrate Mexico's ability to act in terms of security policy and to refute arguments for US intervention. With a view to the upcoming renegotiation of the North American Free Trade Agreement (T-MEC), this is of considerable importance, as the T-MEC remains Mexico's economic lifeline. The outlook for German and European companies in Mexico in 2026 is generally positive, mainly due to the planned modernisation of the EU-Mexico Global Agreement. Although the violence is increasing uncertainty in the short term, a renewed nationwide escalation is considered unlikely. If the operation strengthens Mexico's position in the T-MEC negotiations, this would be advantageous for German and European companies based in Mexico.