In recent decades, Mexico has become the center of drug trafficking in the world. With the high demand for drugs in the United States, drug smuggling and trafficking have become a very profitable 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 drug trafficking 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 Drug Trafficking and the Drug War in MexicoMexico is a major supplier of a variety of drugs to the United States. It serves as a transit point for drugs 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. An estimated 40 to 67 percent of marijuana comes from Mexico and 95 percent of cocaine travels there. This massive drug trafficking and smuggling system became an important part of Mexico's economy. The Mexican drug system provides direct or indirect employment to a large part of its population. Drug trafficking is also part of Mexico's GDP. It is estimated that it could represent around 4%. This percentage equates to $30 billion. Drug trafficking employs at least half a million people. The involvement of people in drug cultivation is linked to the large number of people living in poverty. For many of them, drug cultivation is the only way to earn a living. In recent decades, drug trafficking has created a system of powerful drug cartels that generate high profits by smuggling drugs into the United States. Their power has grown due to US counter-drug operations in the Caribbean and Florida