Monday, October 5, 2015

New 'Special Economic Zones' Planned for Southern Mexico

Office of the Mexican Presidency

Mexican President Enrique Peña Nieto presented the Federal Law on Special Economic Zones Initiative, which will implement this model for the first time in the country’s history.

The Initiative is designed to narrow the development gap between the north and south of the country; Mexico’s transformation should prioritize the modernization of the south of our country.

He has also followed up on the social policies the government has implemented, such as the National Crusade against Hunger, and the Prospera Social Inclusion Program

Special Economic Zones in Mexico seek to break paradigms, shifting from welfare, which merely contains poverty, to a comprehensive, effective and long-range strategy.

Special Economic Zones complement social policies with cutting-edge economic policies that raise productivity, create new jobs and wealth, and increase social welfare.

The proposal is for the first Special Economic Zones to be established in:

• The Industrial Inter-Oceanic Corridor in the Isthmus of Tehuantepec

• The municipalities adjoining the Port of Lázaro Cárdenas

• Puerto Chiapas

By narrowing gaps, we will build a more inclusive and prosperous Mexico for everyone.

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Features of Special Economic Zones

Special Economic Zones (SEZs) are geographically determined places providing a special framework of measures to ensure a favorable environment for business development.

They also provide guarantees for national and international investments.

This is the first time Mexico has proposed this productive development policy, designed with the aim of creating industrial development poles in the southeast of the country.

Special Economic Zones are a different way of promoting productivity, characterized by:

• Direct tax benefits for investment and employment.

• Special customs regime.

• Foreign trade facilities.

• Regulatory frameworks to speed up setting up businesses.

• Competitive infrastructure that ensures logistic connectivity to different parts of the country and international markets.

• Special financing from development banking.

• Support for job training and technological innovation.

• Urban planning and the orderly development of housing in surrounding areas.

Worldwide, SEZs have proved an effective measure in over 3,500 experiences in countries such as Brazil, South Korea and China.

Under this model, Special Economic Zones in Mexico are designed to accelerate the process of reducing the historical lag in southern Mexico.

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"Special Economic Zones," and "Features of Special Economic Zones," Presidency of the Republic, Sep. 30, 2015, Mexico, D.F.; edited translation by the Office of the Mexican Presidency