In particular, Chiapas, Guerrero and Oaxaca stand out. The share of residents living in extreme poverty in these states ranges from 61 percent to 74 percent. The Mexican government is currently creating the conditions needed to spark growth and has planned special economic zones in Chiapas Port, Lázaro Cárdenas Port and the Isthmus of Tehuantepec, which connects the Gulf and Pacific coasts. Included in the plans are tax incentives, duty-free customs benefits, streamlined regulatory processes, improved infrastructure and better logistical connections to the rest of Mexico.

For economies in the northern and central states to remain robust and the south to further develop, Mexico needs to maintain good trade relations with the United States. About 80 percent of Mexico’s exports go to the United States and are exchanged within the NAFTA framework. However, the future of NAFTA has been brought into question in the United States, a topic we will further explore in our upcoming Deep Dive.

GPF Team
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