Jaime Rodríguez “El Bronco”, governor of Nuevo Leon and who is seeking an independent candidacy for the Mexican presidency, said he would lower taxes to compete with lower rates in the United States if President Donald Trump’s fiscal reform is approved in the Congress.
“We are going to compete,” he told Reuters. “If I succeed and become president, I would lower taxes,” he said, although he avoided giving details.
The Mexican government is closely monitoring Trump’s tax plans and some senior officials and lawmakers say the country may have to reduce its taxation, which currently stands at 30 percent if the United States does the same.
However, the director of the Centre for Economic Studies of the Private Sector says If Mexico replicated the tax reform of President Donald Trump, the country would stop collecting about 210 thousand millions of pesos per year.
Nuevo León, where the vast industrial centre of Monterrey is located, has been one of the main beneficiaries of the North American Free Trade Agreement (NAFTA), a fact that generated investments from companies seeking access to the US market.
That included a $ 1 billion investment by South Korean automaker Kia Motors under an agreement signed in 2014, although Rodriguez and others criticized the incentives granted to the company.
“We do not want any more assembly plants,” he said. “We will no longer grant the kind of incentives that Kia was given to any other company. It’s excessive.”
Known as “El Bronco” for his direct style, Rodriguez, 59, leads the independent candidates in collecting the 866,593 signatures needed before February 19 to appear on the ballots on July 1, according to data from the electoral authority (INE).