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World Watch Report CONFIDENTIAL WORLD WATCH® REPORT ­­ON­­ Mexico Date: 12/18/2019 16:13:59 GMT / UTC UnitedHealthcare Global Risk | 14141 Southwest Freeway, Suite 500 | Sugar Land, Texas 77478 ph: (713) 430­7300 | email: [email protected] | url: www.uhcglobal.com World Watch® is confidential and is intended solely for the information and use of UnitedHealthcare Global's clients. Given the nature of the information, UnitedHealthcare Global does not guarantee the accuracy or completeness of the information because agencies outside the control of UnitedHealthcare Global contribute information to World Watch®. While UnitedHealthcare Global vets and verifies all information with the utmost care and consideration for the end user, UnitedHealthcare Global does not guarantee the accuracy or completeness of the information and specifically disclaims all responsibility for any liability, loss or risk, personal or otherwise, which is incurred as a consequence, directly or indirectly, of the use and application of, or reliance upon, any of the information on this site, including customized reports created by clients. Any alteration or modification of the content of World Watch®, either from the website or via printed reports, is strictly prohibited. For more information, please contact us at [email protected] or visit www.uhcglobal.com. Copyright © 2019 UnitedHealthcare Global. All rights reserved. For Terms and Conditions go to Terms Of Use World Watch® Report from UnitedHealthcare Global Mexico Executive Summary for Mexico Andres Manuel Lopez Obrador (AMLO) of the National Regeneration Movement (MORENA) party was inaugurated as the president of Mexico on 1 December 2018, following a landslide victory in the general election, which took place in July 2018. Lopez Obrador ­­ who previously served as the mayor of Mexico City ­­ secured 53 percent of the vote and leads the alliance between MORENA, the left­wing Labor Party and the right­wing Social Encounter Party. AMLO has pledged to bring drastic changes to Mexico; however, details regarding his plans to transform the country remain unclear. That being said, in order to tackle the country’s current security crisis, Lopez Obrador has proposed a National Plan for Peace and Security, which hopes to create a National Guard that would operate under the Ministry of Defense. The intended security force will be composed of police officers as well as military personnel. Mexico's drug war continues to be a major concern, if not the country's primary focus. Mexico is both a major producer of illicit drugs (including marijuana, heroin and methamphetamine) and a significant transshipment point for such drugs, primarily cocaine, bound for the United States from South America. The Mexican government has maintained a continued crackdown on the country’s powerful drug cartels for the past several years with the aim of uprooting them from their bases of operation. The crackdown has fueled an increase in violence, especially in northern Mexican cities along the country’s border with the U.S. The arrest of the Sinaloa cartel leader Joaquin “El Chapo” Guzman and his extradition to the U.S. has further fueled violence among drug cartels vying to control the regional territories controlled by the Sinaloa cartel. The rise in drug trafficking­related violence throughout Mexico has raised significant concerns regarding security conditions for both travelers and local residents. While cartel violence is concentrated in a handful of northern Border States such as Tamaulipas, Nuevo Leon, Coahuila, Durango and Chihuahua as well as the Pacific Coast states of Michoacan and Guerrero, security threats related to the drug trade continue to spread beyond those states. Random shootings and other attacks in public places (including those involving explosives), which could collaterally affect innocent bystanders, remain a significant concern. Travelers should exercise caution near government buildings, police stations and media outlets, as drug cartels have launched attacks against these facilities throughout Mexico. While cartel­related violence has relatively decreased over the past few years, the threats and concerns associated with drug­trafficking will remain Mexico's most prominent security issue for the foreseeable future. Mexico has the 12th largest economy in the world. Oil exports, manufacturing, electronics, remittances and tourism dominate the country’s economy. In recent years, Mexico’s automotive industry has become an increasingly significant factor in supporting the country’s economy, as it produces the largest number of automobiles in North America. Nevertheless, Mexico continues to remain economically dependent on the United States ­­ its most important trade partner ­­ and poverty remains pervasive in Mexico. While decreasing oil production, weak oil prices, infrastructural issues, a decrease in exports as well as the country’s difficulties involving drug cartel violence, continue to negatively impact Mexico's economy, there has been notable improvement in recent years. Mexico Information Country Facts Current Analysis Official United Mexican States Country Name Andres Manuel Lopez Obrador (AMLO) of the National Regeneration Type Of Federal Republic Movement (MORENA) was inaugurated as the president of Mexico on 1 Government December 2018. Leadership President Andres Manuel Lopez Drug cartel violence is a significant concern throughout Mexico, particularly Obrador (AMLO) near the country's northern border with the U.S. Capital Mexico City The Mexican government has faced an increasing a number of economic Official Spanish challenges in recent years, including the cultivation of private investment in the Language energy sector, improving infrastructure and overhauling the public education Population 116.2 million system. Ethnic Mestizo (Amerindian­Spanish) Political Situation Divisions 60%, Amerindian 30%, white 9%, other 1% Andres Manuel Lopez Obrador (AMLO) of the National Regeneration Movement Religion Roman Catholic 82.7%, Protestant World Watch® Report from UnitedHealthcare Global (MORENA) party was inaugurated as the president of Mexico on 1 December 1.6%, Jehovah's Witnesses 1.4%, other Evangelical Churches 5%, 2018, following a landslide victory in the general elections, which took place in other 1.9%, none 4.7% July 2018. Lopez Obrador ­­ who previously served as the mayor of Mexico City ­­ won the election, with more than 53 percent of the vote, marking the first time Growth 2.3% in the country’s modern history that a candidate had won with more than half of Inflation 5.51% the vote. It is also the first time in the country's recent history that a left­wing Unemployment 3% politician has assumed the presidency. AMLO has pledged to govern as a “common man” and drastically transform Mexico, and has proposed a National Currency Mexican peso (MXN) Plan for Peace and Security to fight drug cartels. He has also pledged to Business Hours 0900­1800 eradicate corruption and reduce inequality; however, specifics regarding his plans to fulfil his promises remain unclear. Time Zone Three time zones (Mexico City: Offset UTC –6, DST Observed) Mexico's war against illegal drug­trafficking and related violence continues to be Country Phone 52 a top priority for the government. The Mexican government has maintained a Code crackdown on the country’s powerful drug cartels with the aim of uprooting them Capital City 55 from their bases of operation since the inception of the previous administration Phone Code under Felipe Calderon. Former President Nieto continued these efforts but Nationwide 911 altered the strategy by focusing heavily on arresting or killing the leadership of Emergency the various cartels operating in Mexico. His administration has focused Number(s) particularly on Los Zetas, known to be the most violent cartel in Mexico. The Electricity 127 V, 60 Hz February 2014 capture of Sinaloa Cartel leader El Chapo Guzman was a significant political victory of Nieto, whom many accused of leniency towards El Plug Styles Types A, B Chapo and the Sinaloans. The crackdown has so far yielded some positive results in the form of drug seizures and arrests of high­level cartel operatives, but doubts remain as to whether security gains can be maintained in the long­term without addressing the corruption that is so prevalent in local police forces in cities across Mexico. Mexico ranked as one of the most corrupt countries in Latin America according to Transparency International's latest Corruption Perceptions Index, ranking 95th out of 168 countries worldwide International Relations Relations with the United States dominate Mexico’s foreign policy concerns. As approximately 80 percent of Mexican exports go to the United States, bilateral trade and political issues with the United States have far­reaching consequences for the Mexican economy. Mexico is a member of the United States­Mexico­Canada Agreement (USMCA) and the Security and Prosperity Partnership of North America (SPP). Mexico closely follows the contentious political debates in the United States about the issue of illegal immigration. Remittances from workers in the United States are Mexico’s second largest source of foreign income after crude oil exports. Thus far, efforts to reform immigration laws and address the status of the estimated 12 million undocumented immigrants in the United States have stalled. Drug Cartel­Related Violence The rise in drug trafficking­related violence has raised concerns regarding security conditions for travelers and businesses
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