Fox, whose term ends in December and who is barred by law from seeking reelection, has been considered a strong ally of the U.S. anti-drug effort. He has said the current drug war was triggered when he began arresting top leaders, including Osiel Cardenas, who allegedly runs the Gulf cartel from prison.
In the last year, Fox has called in the army to patrol the border city of Nuevo Laredo when it became clear that local police were in league with traffickers. And he has promised to extradite drug smugglers facing trial in the U.S.
Consequently, many U.S. officials, and Mexicans, are scratching their heads over the new law.
Mexican Sen. Jorge Zermeno, a member of Fox's National Action Party, spoke twice in support of decriminalization before the Senate's 53-26 vote Friday shortly after midnight.
He said the legislation, which Fox first proposed in 2004, was intended to allow drug possession for bona fide addicts, who would be sent to drug treatment instead of jail. But the word "consumer" was attached to the bill and won approval, broadening it to include all adults, he said.
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Cecilia Sanchez and Carlos Martinez in The Times' Mexico City Bureau contributed to this report.