For any foreign corporation or investor seeking to operate successfully in Mexico, understanding the nation’s power structure is paramount. At the very heart of this structure lies the Executive Power (Poder Ejecutivo), a branch of government vested in a single, powerful figure: the President of the United Mexican States. In Mexico’s political system, the presidency is not merely a ceremonial role; it is the central axis of national administration, policy implementation, and strategic direction.
The President and their cabinet of ministries, known as Ministries of State, form the administrative engine that drives the country. It is this branch of government that proposes the federal budget, manages the national economy, oversees tax collection, enforces labor laws, and controls all aspects of immigration. Consequently, nearly every significant interaction a foreign business has with the Mexican government—from obtaining a tax ID and work visas to complying with workplace safety standards—is an interaction with an entity that ultimately reports to the President.
This guide provides a comprehensive, in-depth analysis of Mexico’s executive branch, designed specifically for a business audience. We will explore the immense powers and constitutional limits of the presidency, detail the critical functions of the key ministries that directly impact business operations, and explain how this branch interacts with the legislative and judicial powers. Ultimately, a clear understanding of the executive branch is essential for any company that aims to navigate the Mexican regulatory environment with strategic foresight and confidence.
Federal government of Mexico
Claudia Sheinbaum Pardo is a Mexican politician, energy and climate change scientist, and academic who currently serves as the 66th president of Mexico since 2024.
| Assumed office | Otober 1st, 2024 |
|---|---|
|
Predecesor |
Andres Manuel Lopez Obrador |
|
Political Party |
Morena |
The Mexican presidency is a unique and powerful institution, defined by two concepts that are a direct result of the country’s history: the sexenio and the absolute prohibition on re-election.
The President of Mexico is elected by a direct popular vote to serve a single, six-year term known as the sexenio. This six-year period is the fundamental cycle of Mexican political life. When a new President takes office, it invariably brings a new set of national priorities, a new cabinet of ministers, and often, significant shifts in policy and administrative style. Understanding where you are within a given sexenio can be a key piece of strategic intelligence, as the beginning of a term often involves new reforms, while the end of a term can be a period of transition.
The President’s constitutional powers are extensive. They are simultaneously the head of state (the ceremonial leader of the nation) and the head of government (the chief executive responsible for all administrative functions). Key powers of the President include:
The President has the sole authority to appoint (and remove) the heads of all the cabinet-level Secretariats of State, giving them direct control over the entire federal bureaucracy.
The President is the nation’s chief diplomat, responsible for directing foreign relations and negotiating international treaties (which must then be ratified by the Senate).
The President holds ultimate authority over the Mexican Army, Navy, and Air Force.
The President has the power to introduce bills directly to the Congress and to issue executive decrees (decretos) and regulations (reglamentos) that have the force of law.
The President, through the Ministry of Finance, drafts and submits the annual federal budget for approval by the Chamber of Deputies.
The most defining feature of the Mexican presidency is the constitutional prohibition on re-election. This principle, enshrined in the Constitution of 1917, is absolute and is a direct legacy of the Mexican Revolution, which was fought in large part to end the 35-year dictatorship of Porfirio Díaz.
This “no re-election” clause has a profound impact on the political system. It ensures a regular transfer of power and prevents the consolidation of authority in a single individual over time. For businesses, this means that the political and regulatory landscape is guaranteed to evolve with each new administration. This makes it crucial to maintain an understanding not just of the current administration’s policies, but also of the political trends that will shape the next sexenio.
To execute their vast responsibilities, the President relies on the Federal Public Administration, which is comprised of the various cabinet-level Ministries of State. These ministries are the functional heart of the government, each responsible for a specific area of national administration. For any business, understanding the jurisdiction of these key secretariats is the first step in knowing which government entity to engage for specific regulatory matters.
What follows is a detailed overview of the most important secretariats for any foreign company operating in Mexico.
The SEGOB is often considered the most powerful and politically significant ministry. It is responsible for managing the country’s internal political affairs, coordinating national security, and overseeing all migration matters. Its primary role is to maintain the stability and “governability” of the nation, which creates the secure environment necessary for business.
National Security Coordination: While not a law enforcement agency itself, it oversees the National Intelligence Center (CNI) and coordinates the overall national security strategy.
Registro Nacional de Población (RENAPO): This agency manages the national population registry and is responsible for issuing the CURP (Unique Population Registry Code), a unique ID number assigned to all Mexican citizens and residents, which is essential for nearly all formal transactions.
[For a deeper dive, explore our full report: A Guide to the SEGOB: Understanding Mexico’s Ministry of Interior]
The SHCP is the ministry responsible for managing the nation’s finances, fiscal policy, and tax collection. For any CFO or financial director, understanding the SHCP and its primary agency is fundamental to operating in Mexico.
Financial System Regulation: It oversees the country’s banking, securities, and insurance sectors.
Debt Management: It is responsible for managing the nation’s public debt.
[For a deeper dive, explore our full report: A Guide to the SAT: The Tax Administration Service]
The Ministry of Economy is the primary government body responsible for formulating and managing Mexico’s industrial and international trade policy. For any manufacturing or export-oriented company, the SE is a critical ministry.
International Trade: The SE leads all of Mexico’s free trade agreement negotiations and is responsible for managing the country’s overall trade policy.
Investment Promotion: It actively works to attract Foreign Direct Investment and promote a favorable business climate.
Industrial Policy: It creates and manages programs designed to support and develop key industrial sectors within the country.
The IMMEX Program: The Ministry of Economy is the agency that grants and oversees the IMMEX (Manufacturing, Maquiladora, and Export Services Industry) program. This crucial program enables companies to import goods duty-free for manufacturing and subsequent export temporarily. For nearly all foreign manufacturers, obtaining an IMMEX decree from the SE is a fundamental step.
Sectoral Promotion Programs (PROSEC): The SE also manages the PROSEC programs, which allow for preferential tariff rates on the import of specific materials and machinery for certain key industries.
The STPS is the federal ministry responsible for enforcing all of Mexico’s highly protective labor laws and ensuring the health and safety of every workplace in the country. For any company with employees, compliance with STPS regulations is a core operational requirement.
Enforcement of the Federal Labor Law (LFT): The STPS is the primary enforcer of the LFT, which governs everything from working hours and wages to profit sharing and termination procedures.
Workplace Safety and Health: A central role of the STPS is the creation and enforcement of the Normas Oficiales Mexicanas (NOMs) related to workplace safety. These detailed technical standards cover everything from fire safety and personal protective equipment (PPE) to ergonomic risks and psychosocial factors.
Workplace Inspections: The STPS has broad authority to conduct inspections of any workplace to verify compliance with both the LFT and the applicable NOMs. These inspections can be rigorous and can result in significant fines for non-compliance.
Union Registration: The ministry also oversees the official registration of labor unions.
[For a deeper dive, explore our full report: A Guide to the STPS: Understanding Mexico’s Ministry of Labor]
The SRE is Mexico’s diplomatic arm, responsible for managing the country’s relationships with the rest of the world. While its role may seem less direct for business, it is a crucial part of the international framework.
Diplomacy: The SRE manages all of Mexico’s diplomatic relations.
Operating Embassies and Consulates: It runs Mexico’s global network of embassies and consulates.
Visa Issuance: Mexican consulates, which the SRE operates, are the government body that physically interviews foreign nationals and issues the visa stamp in their passport during the work permit process (acting on the authorization provided by the INM). This makes the SRE a crucial link in the process of attracting foreign talent to Mexico.
While the President holds immense power, the Mexican system is one of checks and balances. The executive branch must constantly interact with the legislative and judicial branches.
With the Legislature:
The President has the power to introduce legislation, and a large part of the political process involves negotiating with the Congress to pass the administration’s agenda, particularly the annual budget. The Congress, in turn, can check the President’s power by amending or rejecting legislation. The Senate holds a particularly important check through its power to approve treaties and key appointments.
With the Judiciary:
The President appoints the justices of the Supreme Court (with Senate approval), but once appointed, the judiciary operates independently. The Supreme Court has the ultimate power to declare laws or executive actions unconstitutional, serving as the final check on the power of the other two branches.
The executive branch of the Mexican government, led by the President and administered by the various Secretariats of State, is the most powerful and influential force in the country’s public life. For a foreign company, success is contingent on a clear understanding of this complex administrative structure. Each ministry—from the SEGOB managing your employees’ visas, to the SHCP collecting your taxes, to the STPS inspecting your factory—plays a critical and unavoidable role in your day-to-day operations.
Navigating the regulations, permits, and compliance requirements of these various executive agencies can be a daunting and resource-intensive task. It requires deep institutional knowledge and on-the-ground expertise.
At Start-Ops, we specialize in managing this complexity for our clients. We serve as the expert interface between your business and the key agencies of Mexico. Also, we handle the intricate processes of registration, permitting, and compliance across all relevant ministries. While doing this, we ensure that your operation is established correctly and remains in good standing. We manage the administrative burden so you can focus on your core mission: building a successful and thriving business in Mexico.
Contact us for a strategic consultation to explore how we can help you navigate Mexico’s executive framework with confidence and efficiency.
