How Newly-Elected Mexican President's Gov't Could Fail Before It Begins

Posted July 05, 2018

Mexico's peso led gains among emerging-market currencies as sentiment improved overnight on speculation that Andres Manuel Lopez Obrador, the country's next president, may seek a congenial relationship with his USA counterpart.

The brash USA leader has also threatened to tear up NAFTA, the two-decade-old North American Free Trade Agreement. In a post-election speech, however, he has taken a more concilliatory tone saying he would like to "pursue a relationship of friendship and co-operation with the United States, always rooted in mutual respect and in the defence of our fellow Mexicans who live and work honourably in that country". He aptly cashed in on the Mexican public's anger towards Trump, who throughout the Mexican election campaign season continued to criticise Mexico's immigration policies, insist that Mexico should pay for the border wall, and fuel anti-Mexican and anti-immigrant rhetoric in the US.

Lopez Obrador has said he will root out corruption and grant amnesties to certain criminals amid an intense wave of violence in Mexico.

"We are not going to fight". If he makes headway against those problems, he will help create for the US a stronger, more reliable neighbor and trading partner.

Andrés Manuel López Obrador won the Mexican presidency with a large margin on Sunday.

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That Lopez Obrador won the election with about 53 per cent of the vote is a sign of how much the people of Mexico desire change.

Jose Antonio Meade, the presidential candidate from the governing Institutional Revolutionary Party, told Lopez Obrador at a recent debate: "You want to forgive the unforgivable". Lopez Obrador himself refused to accept his two previous presidential losses, and in 2006 his supporters set up a protest camp that caused months of chaos in downtown Mexico City.

From 1996-99 he served as the national president of the PRD, and in 2000, Mr. Obrador was elected as the Mayor of Mexico City.

Claudia Sheinbaum of the "Juntos haremos historia" coalition party, gives her thumb up after casting her vote during the general elections in Mexico City, on July 1, 2018.

Lopez Obrador previously vowed to throw the energy reform out but now says contracts merely will be reviewed for any illegalities.

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Corbyn repeated Lopez Obrador's recurring words "yes we can" and assured that change is possible both in Mexico and in United Kingdom, where the left is still the opposition. It edged lower Monday in the aftermath of Lopez Obrador's commanding victory at the polls.

Mexican presidents are limited by law to a single term. And efforts to update the North American Trade Agreement have stalled, raising concerns that negotiations could drag into next year.

Most of the murders have been of local politicians, the most frequent targets for drug cartels seeking corrupt officials they can strike alliances with. He also proposed Mexican consulates in the United States provide legal help to Mexican immigrants.

His political party, Morena, and its allies could win majorities in both chambers of Congress, according to projections based on results still trickling in.

Carlos Urzua, Lopez Obrador's pick to be his finance minister when he takes office on December 1, told Reuters on Monday that the new government will aim to reform the pension system and to reduce costs at Pemex during its six-year term.

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"It's worth cautioning that we still have little clarity on Amlo's economic policies", said Edward Glossop, an economist at Capital Economics.