In order to overcome the insecurity and economic instability that affects the southwestern region of Mexico, on November 27th, 2014, Enrique Pena Nieto announced the creation of Special Economic Zones in the states of Guerrero, Michoacan, Chiapas and Oaxaca. Said areas would be located in the interoceanic corridor in the Isthmus of Tehuantepec, in Puerto Chiapas, near the border with Guatemala, as well as another in the neighboring towns to Puerto Lazaro Cardenas, between Guerrero and Michoacan.

Special Economic Zone (SEZ) is the name given to a geographical region that has economic or varying-nature laws that are directed in a more intensive manner towards a free market economy; qualities that surpass those that national or typical laws usually grant. Thus, laws nationwide may be suspended within a Special Economic Zone, giving it an advantage in economic development terms. A SEZ is regulated by the government and is designed so that the private sector and business institutions, may exploit it for investments abroad. SEZs have been established in different countries, such as China, India, Poland, Jordan, Kazakhstan, the Philippines and Russia (even North Korea came close to including this economic development model).

President Pena Nieto will send this legal initiative to the Mexican National Congress in February 2015; with it, the government intends to encourage investment and job creation. Both will be better paid in said territories. According to President Pena Nieto, great care will be put in creating modern economic infrastructure, safer conditions, more and better facilities for foreign trade and significant discounts in taxes and contributions. With these three SEZs a good example - such as the one placed by the above nations – must be followed. Only in infrastructure matters, an investment of 195,000 million pesos is currently made in the three states south of the country; within this investment, highway, hospital infrastructure and several strategic projects are included.

These three regions will act as a Special Economic Zone. It will have a regulatory framework and special incentives to attract businesses and job creation. Furthermore, the SEZ will support rural training colleges, and will also establish a special scholarship program. Scientific research will be promoted through CONACYT and a temporary staffing plan that could benefit more than 300,000 southern families will be encouraged. Pena Nieto explained that "with an investment of 4 billion pesos, emerging field programs will generate momentum; this includes a renewal and repopulation program for coffee farms. This will also include a decree of fiscal support for Acapulco Port, which is in need of economic recovery. Also, two billion additional dollars will be awarded in loans to SMEs.

Moreover, Finance Minister Luis Videgaray explained that these SEZ will.... Continue reading article here

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