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Officials Working to Improve Economy on Mexican Side of Border

Mexican officials are trying to stimulate wage and job growth near the U.S.- Mexico border.

Posted: Jan 5, 2019 11:49 AM

MEXICO CITY (AP) - President Andres Manuel Lopez Obrador has launched an ambitious plan to stimulate economic activity on the Mexican side of the U.S.-Mexico border despite recent U.S. threats to close the border entirely.

Mexico plans to slash income and corporate taxes to 20 percent from 30 percent for 43 municipalities in six states just south of the U.S., while halving to 8 percent the value-added tax in the region.

Business leaders and union representatives have also agreed to double the minimum wage along the border, to 176.2 pesos a day, the equivalent of $9.07 at current exchange rates.

Lopez Obrador says the idea is to stimulate wage and job growth via fiscal incentives and productivity gains. President Donald Trump has repeatedly complained that low wages in Mexico lure jobs from the U.S.

(Copyright 2019 The Associated Press)

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