How Politics in Mexico Are Affecting Manufacturers Everywhere

by John Paul McDaris, Entrada Group

It was just over five years ago that companies were enticed by the business-friendly climate in Mexico, and the generally positive affect that the ruling PRI (Institutional Revolutionary Party) party was having on manufacturing and foreign direct investment.

The runaway election of Andrés Manuel López Obrador (who is better known by his acronym AMLO, and hailing from the Morena party) in 2018 and his subsequent policy changes to improve the plight of the working class changed everything, however.

AMLO campaigned on his commitment to raise the minimum wage by at least 15% year-over-year. And he has kept true to his promise, with minimum wage increases ranging from 15% to 23% each year.

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