Presidential administration of Mexico from 2018 to 2024
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On 1 July 2018, López Obrador won a landslide victory against all other candidates, managing to secure 53% of the popular vote.[4] His closest opponent, Ricardo Anaya, only garnered 22%.[4] On 8 August, the Electoral Tribunal of the Federal Judiciary (TEPJF) certified López Obrador's victory, with his coalition becoming the dominant political force in the Mexican Congress, securing 69 out of 128 Senate seats and 308 out of 500 Chamber of Deputies seats.
On 3 July, he met incumbent president Enrique Peña Nieto at the National Palace,[9] where they spoke on the North American Free Trade Agreement (NAFTA), the construction of the New International Airport for Mexico City (NAICM), energy reform, the budget, and security.[10] In a departure from standard presidential security practices, López Obrador attended the meeting without the presence of bodyguards.[9]
From 22 to 25 October, he held a nationwide referendum on whether or not the New International Airport for Mexico City was to be scrapped, citing that the project was rife with graft and a waste of taxpayer money. About 70% of the results voted against the continuation of the project. López Obrador insisted on expanding the Santa Lucía Air Force Base instead.[15]
Following the formal welcome and announcement by the President of Congress, López Obrador read the oath outlined in Article 87 of the Constitution of Mexico. At the end of the phrase "the people have given me", he added the word "democratically". The transfer of the presidential sash then took place, with the outgoing president handing it over to the President of Congress, who then passed it to the new president. López Obrador was the first president to address Congress since the year 2000, following the brief inaugurations of Felipe Calderón and Enrique Peña Nieto, who had only taken the oath and then left.[24] At the end of the speech, he was honored with the Himno Nacional Mexicano.
The foreign representation at the inauguration included the attendance of 14 heads of state and government:[25]
A rally in support of López Obrador took place in the Zócalo of Mexico City, where representatives from 68 indigenous groups presented him with the bastón de mando, a traditional ceremonial staff. This symbolic gesture marked the first time a Mexican president had received the staff, signifying the recognition of López Obrador as a leader by the indigenous groups. The event concluded with López Obrador addressing an estimated 160,000 people.[27][28]
On the same day as the inauguration, López Obrador broke several longstanding presidential traditions. He abolished the Presidential General Staff, an institution charged with protecting and safeguarding the President of Mexico and the First Lady of Mexico. He also opened the official residence of Los Pinos to the public and relocated the presidential offices to the National Palace.[29][30]
On 20 December 2018, due to the 2014 political-electoral reform, the Office of the Attorney General of the Republic (PGR) was dissolved, and the autonomous Office of the Attorney General of the Republic (FGR) was established outside the cabinet.[37]
Throughout his term, López Obrador's cabinet experienced significant turnover. In the first four years of his administration, there were fifteen cabinet changes.[38]
Pursuit of other public offices
María Luisa Albores, the Secretary of Welfare, transitioned in 2020 to become to the Secretary of Environment and Natural Resources.[39]
Olga Sánchez Cordero. the Secretary of the Interior, resigned in 2021 to return to her Senate seat, which she had left to become part of the cabinet.[41]
Carlos Manuel Urzúa Macías, the Secretary of Finance, resigned in 2019 over disagreements with the president, citing concerns over economic policies and the appointment of unqualified individuals to key positions.[45]
Javier Jiménez Espriú, the Secretary of Infrastructure, resigned in 2020 as he disagreed with López Obrador's decision to entrust the operation of Mexico's ports and customs to the Navy.[46]
Domestic policy
This section needs to be updated. Please help update this article to reflect recent events or newly available information.(December 2019)
López Obrador gave his Primer Informe del Gobierno (State of the Union address) on 1 September 2019, before 400 legislators, governors, and business leaders. During his hour-and-a-half speech, he emphasized how he has eliminated a lot of corruption and helped the poor.[47] The speech generated 125,000 tweets and 27,000,000 viewers.[48]
Economic policy
López Obrador's economic policies, characterized by a commitment to fiscal conservatism and social equity,[49] focused on maintaining low public debt through spending cuts while increasing social spending. His policies aimed to reduce reliance on imports, strengthen state-run companies like Pemex and the CFE, and stimulate growth and employment through large-scale infrastructure projects. While the country maintained macroeconomic stability, his administration faced criticism for sluggish economic growth and poor investments in other sectors.[50]
Upon taking office, López Obrador faced significant internal and external challenges, contributing to zero economic growth during his first year in office.[51][52] These challenges included the excessive growth of public debt under the previous administration, conflicts with economic actors, the China–United States trade war, and Donald Trump's tariff policies. Some setbacks were self-inflicted, such as the cancellation of the Mexico City Texcoco Airport and reduced spending due to his austerity measures, which brought down construction investment.[52] However, macroeconomic indicators remained stable, and the year also saw the ratification of the United States–Mexico–Canada Agreement.[53][54]
In 2020, the Mexican economy was severely impacted by the COVID-19 pandemic and the subsequent stock market collapse, with GDP plummeting by 17% in the second quarter before rebounding 12.1% in the third quarter. The annual GDP forecast improved from -9.8% to -8.9%. López Obrador's commitment to austerity, even amidst the crisis, helped maintain a low budget deficit and public debt,[55] earning him a reputation as a fiscal hawk.[49][56] Throughout the post-pandemic period, the country's GDP grew by 4.1% in 2021 and 3.1% in 2022. The country also saw a rise in inflation, which peaked in mid-2022.[57] Due to low debt, the Mexico had access to international bond markets,[55] which, when combined with remittances, foreign investment, international reserves, and a strengthening peso—dubbed the "super peso"—boosted economic performance. Nearshoring, driven by the China–United States trade war, further bolstered economic performance. By 2023, the country had recovered from the pandemic, ranking as the 12th largest global economy with GDP growth of 3.2%, and by May 2024, it had the lowest unemployment rate in the OECD.[58]
López Obrador's policies included significant investment in the southern regions of Mexico, which he characterized as a strategy for economic revitalization. Key projects included the Tren Maya, Interoceanic Corridor of the Isthmus of Tehuantepec, and the Dos Bocas Refinery. Near the end of his term, these investments had significantly stimulated regional economies,[59] with Oaxaca and Quintana Roo emerging as some of the fastest-growing states in Mexico in terms of economic growth in 2023.[60][61]
Austerity measures
Upon entering office, López Obrador implemented his proposed "Republican Austerity," which aimed to reduce spending on political privileges and non-essential government products and services.[62] He eliminated presidential pensions and set a salary cap for government officials, ensuring no one could earn more than the president,[63] subsequently slashing his salary by 60%. He opted not to reside in Los Pinos, the costly presidential complex with maintenance costs totaling around MXN $30 billion over the previous two administrations,[64] instead moving the presidential offices to the National Palace and opening Los Pinos to the public.[65]
López Obrador also auctioned various government planes and helicopters,[66] including the presidential plane "José María Morelos y Pavón",[67] which was sold to Tajikistan on 20 April 2023, for approximately MXN $1.658 billion.[68] The proceeds funded hospitals in Tlapa, Guerrero, and Tuxtepec, Oaxaca.[69]
López Obrador sought to reduce the bureaucratic system, which he believed primarily benefited elites and mismanaged public funds.[70] His budgets often included spending cuts to various government agencies, including prosecutors and the public health system, leading to layoffs, salary reductions, and poorer services.[71][72] To centralize operations and address the reduced workforce, López Obrador often utilized the military for infrastructure projects.[70][73]
In February 2024, he proposed eliminating autonomous government agencies, arguing they duplicated the functions of certain cabinet ministries, and planned to absorb their responsibilities into the Mexican cabinet, which he claimed would save money and streamline government operations.[74][75] The proposal faced criticism from many, including opposition members, who viewed it as retaliation against these autonomous agencies.[76]
Labor
One of López Obrador's first actions was implementing a minimum wage increase, raising it from MXN $88.36 to MXN $102.68, marking a 16.2% rise—the largest increase since 1996. This adjustment had an immediate impact on workers' average salaries, which saw a 5.7% increase.[77] His administration continued to increase the minimum wage annually, reaching MXN $248.93 by 2024.[78] In February 2024, López Obrador proposed a constitutional amendment to ensure that the minimum wage consistently rises above the rate of inflation.[79]
Taxation
Rather than pursuing comprehensive tax reform, López Obrador's administration focused on combating tax evasion. To attract and retain foreign investment, particularly from the United States, taxes were reduced in northern border areas, promoting economic expansion in these regions.
Military and security
Shortly after his inauguration, he dissolved the Estado Mayor Presidencial (Presidential Guard), an institution charged with protecting and safeguarding the President of Mexico and the First Lady of Mexico. In December 2018, López Obrador ordered the creation of a truth commission to re-examine one of the country's most notorious unsolved crimes: the kidnapping and presumed murder of 43 trainee teachers who disappeared after they were attacked by cartel gunmen and corrupt police officers.[80] On 1 March 2019, López Obrador said that he would open up the General National Archives to show how intelligence agencies, particularly the CISEN, targeted activists and opposition groups during the Dirty War.[81] During the presidency of López Obrador, the traditional Revolution Day civil-military-athletic parade on 20 November was reinstated that same year (2019) after five years.
Before becoming president, López Obrador campaigned on a promise to take the military off the streets of Mexico. In keeping with this promise, he released a plan to create a Mexican National Guard under control of the military and the Secretariat of Security and Civilian Protection (which was itself established by López Obrador) and would be in charge of "preventing and combating crime".[82] It was the merger of elite parts of the Federal police, Military police, Navy, Chief of Staff's Guard and other top Mexican Security agencies[83] Obrador stated that the creation of a new National Guard would be critical to solving Mexico's ongoing security crisis.[84] On 28 February, the Congress of the Union voted to approve a 60,000-member agency, which was officially established on 30 June 2019.[85] By early 2020, López Obrador restored the Naval Infantry Corps' role in fighting drug cartels,[86] and he relied on the military for tasks such as law enforcement and construction.[87]
One of his campaign promises in relation to the Mexican Drug War was a controversial "strategy for peace": a program to give amnesty to all Mexicans involved in the production and trafficking of drugs. It was proposed as a way to stop the drug trade and the turf violence that spread as a result as well as act as a deterrent to other people from following that path, particularly low-income young people and poor farmers. President López Obrador pointed out that contrary to his proposed plan, past approaches failed because they were based on a misunderstanding of the core problem, which according to him, is the country's social disparities that resulted from economic policies of past presidencies in the years prior that caused the drug problem in the first place which in turn have turned the country into a hotbed of the illegal drug trade globally. On 30 January 2019, López Obrador declared the end of the Mexican war on drugs, stating that he will now focus on reducing spending and will direct military/police/National Guard efforts on armed gasoline theft rings (locally known as huachicolero) that have been stealing more than 70 thousand barrels of oil, diesel and gasoline daily from the nation's gas pipelines.
In 2023, President López Obrador announced that he was open to a peace agreement with the cartels. The announcement came after an activist published an open letter calling the cartels to stop the practice of forced disappearance.[103]
Lithium reserves
In April 2022, Congress passed a law, prohibiting private companies from obtaining licences for lithium extraction.[104]
In February 2023, the president signed a decree nationalising the lithium reserves of Mexico, declaring it the property of the nation.[104] López Obrador noted the enormous importance of the natural resource for the rechargeable battery industry and plans to cooperate with Bolivia and Peru in the technological sphere, as well as to adopt the Bolivian model of lithium mining, wherein companies have to commit to establish a complete value creation chain.[104]
Mining reform
In early May 2023, the Senate passed with 66 votes in favor and none in opposition, a new law regulating the mining sector.[105] According to Senator Napoleón Gómez Urrutia [es], the law is supposed to curtail privileges the sector enjoys, since the last law concerning mining regulation passed in 1992, which relaxed laws on the sector.[105] The law reduces the period of validity of extraction permits from 50 to 30 years, obligates companies to consult with affected communities and present a restoration plan for the impacted environment and outright outlaws new permits in regions with a shortage of water.[105]
Reform of the National Electoral Institute
In February 2023, a controversial law reforming the National Electoral Institute (INE) was passed by the Congress of the Union.[106] The reform entails cuts to the funding and personnel of the INE, forcing the dismissal of about a third of its employees but saving the state about Mex$3.5bn.[106][107]
Espionage on government employees
At the end of May 2023, the New York Times published a story on the espionage of the state secretary for human rights Alejandro Encinas Rodríguez via the Pegasus spy software, which the media outlet connected with ongoing investigations of Encinas on the conduct and actions of the armed forces.[108] In a press conference, López Obrador denied any involvement on the part of the Secretariat of National Defense (SEDENA), while stating he did not know who was responsible for the espionage.[108] Encinas is a long time political ally of López Obrador, who already supported him two decades ago during his mayorship.[108]
On 18 November 2021, President Joe Biden hosted Prime Minister Justin Trudeau of Canada and President Andrés Manuel López Obrador of Mexico at the White House for the first North American Leaders' Summit (NALS) since 2016.
In 2021 and 2022, López Obrador advocated for a regional union, comprising the nations of the Americas, resembling the European Union.[119][120][121][122][123]
In March 2023, López Obrador defended former U.S. president Donald Trump against a potential indictment, saying that "Right now, former President Trump is declaring that they are going to arrest. If that were the case...it would be so that his name doesn't appear on the ballot.”[124] The same month, he lashed out at the United States, claiming the country is "anti-democratic" in seeking to arrest Julian Assange and deny Trump an opportunity to seek re-election. He also referenced the allegations that the U.S. is responsible for the 2022 Nord Stream pipeline sabotage instead of Russia, saying "If we are talking about acts of violence, how is it that an award-winning journalist in the United States claims that the US government sabotaged the gas pipeline from Russia to Europe?", and criticized the fentanyl epidemic in the U.S.[125][126]
^Doherty, Erin; Gonzalez, Oriana (6 June 2022). "Mexico's president confirms he will skip the Summit of the Americas". Axios. Retrieved 26 July 2022. López Obrador said he hopes to visit the White House in July to talk to Biden about the "integration" of all American countries, with the goal of forming something similar to the European Union.
^"Mexico's Lopez Obrador to skip Biden's Summit of the Americas over 'exclusion' of some countries". France 24. 6 June 2022. Retrieved 26 July 2022. The Mexican president said that he would still visit the White House in July where he would look to discuss pan-American "integration." … "That's how they created the European Community and then that became the European Union. That's what we need to do in America," he said.
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