Border US Mexiko

Mexico’s Newly Elected President and his Impact on the Northern Border

By Alejandro Fernando Toulet Lazos, Toulet & Gottfried

Mexico had an election for a new president on 1 July 2018. The undisputed winner was Mr Andrés Manuel López Obrador (‘AMLO’). AMLO is a leftist and populist who has run for, and lost, the presidency the previous two times: once in 2006 and then again in 2012. AMLO formed his own political party, named ‘Movimiento de Regeneración Nacional’ or ‘MORENA’.

In the July 2018 election, MORENA won the presidential election and most of the seats in the Mexican Congress. Therefore, starting 1 December 2018, AMLO will have all the power and control to lead the nation in the direction he desires.

During the presidential campaign, it was said that voting for AMLO would only result in the transformation of Mexico into another Venezuela, since he is a leftist and a populist. However, it appears this is not so. AMLO has already stated that he will not interfere with the free operation of Mexico’s Central Bank; that he is not against business, entrepreneurs and free trade; and he has already spoken amicably to and agreed with Mr Trump on different matters of the bi-national agenda.

What is really exciting currently is that AMLO has stated that in the northern border of Mexico, he will (i) reduce the Value Added Tax from 16% to 8%, (ii) reduce income tax from 30% to 20% and (iii) make it a free trade zone approximately 3,000 kilometers long.

If AMLO can accomplish the above, it is possible that the northern border of Mexico may become one of the largest industrial corridors in the world. Conceivably, it could metaphorically be the ‘wall to be built by Mexico’ hailed by Donald Trump. This is because the investment, development and growth that such a zone would experience could detain, dissuade and discourage any individual wanting to cross illegally into the US. If AMLO’s plan for the northern border is implemented, the entire northern border would have a significant competitive advantage over the rest of Mexico in terms of attracting foreign and national investment.

Alejandro Fernando Toulet Lazos

Alejandro Fernando Toulet Lazos

Toulet & Gottfried, Ciudad Juárez, Mexico
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Toulet & Gottfried is a full service legal and accounting firm that provides legal and business consulting services to national and international entities. Their extensive experience with international organisations is the basis for their multilingual and multicultural expertise.

Alejandro Fernando Toulet Lazos is a partner with Toulet & Gottfried. He is in charge of the corporate, real estate and mergers and acquisitions areas. The emphasis in his practice has been planning, structuring, financing and implementing transactions with foreign corporations doing business in Mexico.

Published: Autumn 2018 l Photo: Takahiko Katayama -

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