Mexico Special Economic Trade Zone along its borders


The program of the Free Zone of the Border was presented when AMLO took office and came into force on January 1 of this year in the 43 municipalities bordering the United States. Sites where the VAT payment was reduced from 16 to 8% and the ISR to 20%, as well as the homologation of the price of fuel with the United States and the increase in the minimum wage to double with 176.72 daily.

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The border strip includes six states of the country, ranging from Baja California to Tamaulipas and the 43 municipalities that comprise it are responsible for 7.5% of the national GDP. The free zone has about 79 thousand 500 square kilometers, 3 thousand 180 kilometers long and 25 kilometers from the dividing line with the United States , so it is considered the largest in the world.

According to the statements made by the Secretary of Economy , Graciela Márquez Colín, in the event “Free Zone of the Northern Border” that took place on January 4 in Reynosa, Tamaulipas. The free zone project is part of the 25 priority programs of President Andrés Manuel.

“With this start, what we are trying to detonate is the productive potential, the location advantage and more and better jobs in 43 municipalities in the border area . The localities of the northern border have a very significant productive potential because they have long been attractive for both national and foreign investment, “said the Secretary.

The idea of ​​establishing the free zone is to attract more investment and have a more competitive market compared to the neighboring country. It is intended that in the medium and long term the area has an annual economic growth of 5 or 6 percent, since between 2013 and 2017, the border strip already had an economic growth higher than the national average with 3.1% compared to the 2.6% of the whole country, this means that it is a dynamic entity. In the words of the Secretary: “it is a region that in terms of production is much richer than the rest of the country and grows at higher rates. Hence , fiscal stimuli , the increase in the minimum wage and the closing of the energy gap will further boost this potential for growth “.

The decree of fiscal benefits will be valid during 2019 and 2020, and it is intended to apply in the same way in the southern border with Belize, in the state of Quintana Roo.

By Xareni Zafra Gatica

This is a fragment of the article Fiscal Scenarios for free trade and investment in Mexicoof the 112 edition /

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