In recent decades, Mexico has become the center of drug trafficking in the world. With a high demand for drugs in the United States, drug smuggling and trafficking has become a very lucrative business. Drug trafficking has created a system in which powerful drugs operate and profit from the sale of drugs in the United States. In 2006, President Calderon decided to limit the influence of the cartels and launched the war on drugs. This article focuses on the economic impact of the drug trade and the War on Drugs, describing the Sinaloa Drug Cartel, and the role of the United States in the War on Drugs. Economic Aspects of Mexico's Drug Trade and War on DrugsMexico is a major supplier of various drugs to the United States. It serves as a transit point for drugs coming from all over Latin America. The most important drugs for traffickers are heroin, methamphetamine, marijuana and cocaine. Mexico is a major supplier of heroin to the U.S. market and the largest supplier of methamphetamine and marijuana. It is estimated that 40 to 67% of marijuana comes from Mexico and 95% of cocaine passes through there. This enormous drug trafficking and smuggling system has become an important part of the Mexican economy. Mexico's drug control system provides direct or indirect employment to a large portion of its population. The drug trade is also part of Mexico's GDP. It is estimated that this may represent around 4 percent of it. This percentage is equivalent to $30 billion. Drug trafficking employs at least half a million people. The involvement of people in drug culture is linked to the large number of people living in poverty. For many of them, drug cultivation is the only way to make a living. Over the past several decades, drug trafficking has created a system of powerful drug cartels that generate high profits by smuggling drugs into the United States. Their power grew thanks to American anti-narcotics operations in the Caribbean and Florida, which