Zona Libre

The Zona Libre, or Free Zone, was a free trade zone in the Mexican state of Tamaulipas along the Mexico–United States border established in 1858. The goal of Zona Libre was to equalize the imbalanced economic environments that had resulted after the Mexican–American War on either side of the Rio Grande River, which had become the international border between the United States and Mexico under the Treaty of Guadalupe-Hidalgo. In January 1885, roughly three decades after the Zona Libre was established, the Mexican government extended the free trade zone along the entire US-Mexican border, which created a zone approximately a thousand miles long and six miles wide.

Mexican–American War

The duration of the Mexican–American War was from 1846–1848 During the war, the economy of the US-Mexican border towns had boomed as merchants' profits inflated while supplying the armed forces of both sides. War proved to be a profitable industry as the border towns swelled in size and in economy. In the decade previous to the war, border towns had actually shrunk in size, such as the town of Matamoros, which had been the largest of the border towns at 17,000, and by 1846 had dwindled to 7,000 inhabitants with only poorer prospects. However, with the coming of American troops, new life was breathed into the towns as an opportunity for commerce showed itself.

Establishment

Once the Mexican–American War had ended and the Treaty of Guadalupe Hidalgo was approved, Mexico reinstated a preexisting system of tariffs which angered merchants who planned to stay in the previously profitable region of Mexico and conduct business. The tariff caused goods to be so expensive they often could not be sold. In addition, the laws governing tariffs were changed frequently and often without reason, resulting in frustration among merchants and distrust among importers.