The Mexican government has created a free zone along the U.S. border.

President Andres Manuel Lopez Obrador issued the decree that will allow tax cuts and incentives for northern Mexico. The decree creates a strip 25 kilometers wide along the border. Throughout that strip the government is reducing income taxes from 30 per cent to 20 per cent. The value-added tax will drop to 8 per cent from 16 per cent and the minimum wage will rise to 177 pesos , which is nearly double the national average. Fuel prices will be set to match U.S. prices. Lopez Obrador said ." This is a very important project for winning investment , creating jobs and taking advantage of the economic strength of the United States. The plan is expected to spur development along the border , create jobs and help stem the flow of migrants north to the U.S.