Forum on Combating Illicit Trade

Forum on Combating Illicit Trade. (Photo: Mexican Secretary of Economy)

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Mexico's Secretary of Economy, Along with COA, Holds Forum on Combating Illicit Trade 

The dialogue, which included the participation of key industries, sought to strengthen the formal economy, value chains, and consumer protection.

Mexico City, February 10, 2026—The Mexican Secretary of Economy, in coordination with Council of the Americas, held a forum on February 5 that brought together federal government agencies, academics, and representatives from sectors, including tobacco, alcoholic beverages, pharmaceuticals, textiles, and manufacturing, to strengthen coordination around addressing illicit trade, a problem harming the national economy. 

The Forum on Combating Illicit Trade's main objective was to create a space for a constructive dialogue between the public and private sectors to exchange perspectives, identify shared challenges, and develop joint recommendations to strengthen collaboration in combating illicit trade and smuggling.

Illicit trade affects key sectors, generates formal job losses, erodes the tax base, and compromises Mexico's competitive business environment. For example, according to estimates presented by industry and academics during the forum, the illegal tobacco market grew from 8.5 percent in 2017 to 18 percent in 2023, which represents a loss of roughly 15 billion pesos annually in tax revenue. That figure that could reach 30 billion pesos with the new Special Tax on Production and Services (IEPS) scheme.

Meanwhile, representatives of the wine and spirits industry shared at the event that 44.2 percent of the distilled spirits market in Mexico is informal, meaning that the value of this illegal market exceeds 55 billion pesos, generating 19 billion pesos in annual tax losses for the state. The pharmaceutical industry also faces an increase in the illicit trade of altered and counterfeit medicines, and therefore is collaborating with the government to solve this problem.

Participants agreed on the need to advance a common agenda based on strengthening traceability systems, reinforcing customs controls and law enforcement, and improving coordination between authorities and the private sector.

The meeting, chaired by Undersecretary of Industry and Commerce Vidal Llerenas Morales, also included the participation of the Secretary of Finance and Public Credit, the National Customs Agency of Mexico, the Ministry of Security and Citizen Protection, and the Federal Commission for Protection against Sanitary Risks. 

Ragnhild Melzi, vice president of the Council of the Americas, emphasized that combating illicit markets is a shared priority between the public and private sectors, as smuggling operates as a parallel economy that channels resources to criminal groups, hinders the growth of formal industries, and generates increasing losses for public finances. 

Forum participants highlighted the need to coordinate efforts between government agencies and productive sectors, as well as the importance of sharing information and best practices to protect the formal economy and ensure a competitive and attractive business environment for investment. The dialogue allowed for the identification of priority areas for action and established the foundations for monitoring mechanisms to ensure the continuity of this strategic collaboration.

Contact for press: mediarelations@as-coa.org