Well from what I hear they don’t need an interceptor for high altitude work, Drug runners always fly at low levels in order to throw of governement radar. Besides the AMX/T is a LIFT and thus can do the job of both the F-5 and the old T-33’s and also they could still buy their Super Tucano’s

Exactly, drug runners often use small airplanes fluing al low altitude to avoid radar. But in practice, the FAM has no autorization under any circunstance to open fire to a civilian airplane even if it suspected of carrying drugs and even if it is intercepted and invited to land at the nearest airport. That´s why we don´t need an armed plane for doing this job. In the present when the FAM with their C-26 or Embraer detect a suspected aircraft, or if it recieves the report from the DEA, the C-26 detects the target and inform to ground about it{s altitude, speed and direction, and then an operation with special forces in Mi 17 or Bell 412 helicopters is prepared to seize the airplane and its cargo as soon as it lands.
So for intecepting drug runners we don´t need the F-5 or AMX or even the Super Tucano as the C-26 or Embraer AEW can do the job.
But on the other hand Mexico by its geography had always had a need for COIN aircraft, that´s why we use the Pilatus PC 7 in large numbers, along with armed helicopters.
A replacement for both the T-33 and the early delivered PC 7 is urgent, and in this field the options could be the Super Tucano or an armed version of the PC 9 or PC 21. With the performance of these turboproop aircraft you don´t need a jet trainer to pass to the F-5.
For internal security, for protection of the oil platforms and refineries Mexico and whatever it could hapend, Mexico dispite being a peaceful country, with excelent relations with it´s neighbours has a need for two or three squadrons of jet fighters.
Modernized F-5, used F-16 from the USAF, Gripens, Kfir, etc are the current options, I think a decition has to be made according to cost, remaining life of the airframes, spare parts availabity, etc.

Definitely during the last two years of president´s Fox goverment there will not be any purchase of new fighters. The navy is expecting 8 Aero L-39 refurbished in Israel for patrol of the Sonda de Campeche oil platforms.
In the mean time -unofficially- the mexican F-5 tigers will destroy their remainig AIM 9B/P missiles and new Pyton lll or maybe IV will be adquired.

I heat rumors two but….I read today in the newspaper Milenio that due to the war on terrorism the US giverment is proposing to the goverments of Canada and México a mini NATO for the security and proteccion of North America, in this proposal the NORAD will cover the entery space of the three countries and some aid will be offer to Mexico for improving his survailance of the oil platforms and the borders with Belice and Guatemala, incluiding modern aircraft.

Let´s see what happen…

Mexico has no plans for replacing their F-5 fighters in the near future, however there has been some insisting rumors in mexican forums and even in spanish magazines that Mexico is going to get more used F-5 from Saudi Arabia and Switzerland. It seems that the swiss deal was canceled due to the interest of the USAF in swiss Tigers for their agressor scuadrons.
Right now it is difficult to get real information about the modernization of the mexican air force.
In recent years the FAM has adquired: 4 Bell 412 helicopters for anti drug operations, 8 heavy lift Yassur 2000 helicopters (Israelí modernization of the S-65 to CH 53 standar)
6 ex RAF and ex IAF C-130 Hércules.

And perhaps in the near future:
24 to 36 F-5 tigers from Saudi Arabia for air defence and attack.
25 new Super Tucanos or PC 9/21 for training, light attack and interception of suspected drug flights.

In my opinion, the SU 35 is a very powerful plane and due to it´s long range could be an option for México, with 20 SU 35 you can replace 48 F-5´s !! but on the other hand it is to expensive for the FAM. Perhaps some Mig 29 used from Ucrania, Russia, Belarus and modernizated to Mig 29 SMT, but if we look at the peruvian experience with used Mig 29, ….well, I really don´t know.
In my opinion the Saab Gripen could be useful for the FAM, it is cheap and simple to mantein and operate and has a multi rol capability, however it uses a swedish version of the US F 404 engine and the aproval of the US Congress wolud be necessary.
In these terms, I think that the F-16 block 15 or perhaps Block 50 from the USAF might really be our next fighter. The US is worried about it´s security and it could be a good reason for them and for Mexico to get an agreement for some 24 to 36 Vipers.