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CRS Report for Congress
Prepared for Members and Committees of Congress
Mexico-U.S. Relations: Issues for Congress
Mark P. Sullivan
Specialist in Latin American Affairs
June S. Beittel
Analyst in Latin American AffairsMay 1, 2009
Congressional Research Service
7-5700www.crs.govRL32724
 
 Mexico-U.S. Relations: Issues for CongressCongressional Research Service
Summary
The United States and Mexico have a close and complex bilateral relationship, with extensiveeconomic linkages as neighbors and partners under the North American Free Trade Agreement(NAFTA). Since 1994, trade between the countries has more than quadrupled. Bilateral relationsare close, and characterized by extensive commercial and cultural ties and cooperation on a rangeof bilateral and international issues. A current trade dispute with the United States involves theimplementation of NAFTA trucking provisions. In March 2009, Congress terminated a pilot-project for Mexican-registered trucks to operate beyond the 25-mile border commercial zone, andMexico responded by imposing import tariffs on over 90 U.S. agricultural and industrial products.Drug trafficking issues are prominent in relations since Mexico is the leading transit country forcocaine, a leading supplier of methamphetamine and heroin, and the leading foreign supplier of marijuana. Shortly after taking office in December 2006, President Felipe Calderón launchedoperations against Mexican drug trafficking organizations. He has sent thousands of soldiers andfederal police to drug trafficking “hot-spots,” and is contending with a significant escalation of drug violence, particularly in several border states and communities. U.S.-Mexican cooperationon drug trafficking has intensified over the past several years. Both countries announced theMérida Initiative in October 2007 to combat drug trafficking, gangs, and organized crime. Todate, Congress has appropriated a total of $700 million for Mexico under the Mérida Initiative. InJune 2008, Congress appropriated $400 million for Mexico in P.L. 110-252, while in March 2009,Congress appropriated an additional $300 million for Mexico under the Mérida Initiative in theFY2009 omnibus appropriations measure, P.L. 111-8. The Obama Administration also hasrequested $66 million for Mexico under the Mérida Initiative in a FY2009 supplemental request.Secretary of State Clinton traveled to Mexico in March 2009 to discuss a broad range of bilateralissues, including Mérida Initiative cooperation. This was followed in early April 2009 with visitsby Secretary of Homeland Security Napolitano and Attorney General Holder, who emphasizednew efforts by their agencies to combat Mexican drug trafficking operations. President BarackObama traveled to Mexico on April 16-17, 2009 to discuss cooperation in the fight against drug-related violence, immigration reform, and clean energy and climate change.On April 24, 2009, Mexico’s Health Ministry announced an outbreak of a new influenza strain,subsequently dubbed the 2009 H1N1 “swine flu.” The Centers for Disease Control andPrevention issued a travel health warning on April 27 advising U.S. citizens to avoid allnonessential travel to Mexico. The Calderón government has been taking significant measures tocombat the outbreak, and the United States (which also is experiencing an outbreak) is providingsome support to Mexico to combat the situation. The 111
th
Congress is maintaining an activeinterest in Mexico with counternarcotics, border, and trade issues dominating the agenda. To date,there have more than a dozen hearings dealing with the increased violence in Mexico as well asU.S. foreign assistance and border security efforts. Comprehensive immigration reform effortsonce again could be considered in the 111
th
Congress. Also see: CRS Report R40135,
 Mérida Initiative for Mexico and Central America: Funding and Policy Issues
; CRS Report RL32934,
U.S.-Mexico Economic Relations: Trends, Issues, and Implications
; CRS Report RL34742,
TheGlobal Financial Crisis: Analysis and Policy Implications
; and CRS Report R40554,
The 2009 H1N1 “Swine Flu” Outbreak: An Overview
, by Sarah A. Lister and C. Stephen Redhead.
 
 Mexico-U.S. Relations: Issues for CongressCongressional Research Service
Contents
Recent Developments..................................................................................................................1
 
Background on Mexico...............................................................................................................5
 
Political Developments.........................................................................................................5
 
Economic Conditions and the Effects of the Global Financial Crisis......................................7
 
2009 H1N1 “Swine Flu” Outbreak........................................................................................8
 
Foreign Policy Challenges...................................................................................................11
 
Mexican-U.S. Relations............................................................................................................11
 
Background........................................................................................................................11
 
Obama Administration........................................................................................................12
 
U.S. Assistance to Mexico...................................................................................................13
 
Drug Trafficking and Heightened Violence in Mexico.........................................................14
 
Bilateral Cooperation on Counternarcotics and Anticrime Efforts........................................18
 
Mérida Initiative...........................................................................................................19
 
Beyond the Mérida Initiative.........................................................................................22
 
Money Laundering and Bulk Cash Smuggling...............................................................24
 
Precursor Chemicals.....................................................................................................24
 
Weapons Trafficking.....................................................................................................25
 
Human Smuggling........................................................................................................26
 
Security and Prosperity Partnership.....................................................................................27
 
Human Rights Issues...........................................................................................................28
 
Migration............................................................................................................................29
 
Trade Issues........................................................................................................................31
 
Functioning of NAFTA Institutions...............................................................................31
 
Trade Disputes..............................................................................................................32
 
Legislation and Hearings in the 111
th
Congress..........................................................................35
 
Enacted Legislation.............................................................................................................35
 
Additional Legislative Initiatives.........................................................................................36
 
Hearings on Increased Drug Violence..................................................................................37
 
House...........................................................................................................................38
 
Senate...........................................................................................................................40
 
Legislation in the 110
th
Congress...............................................................................................41
 
Enacted Legislation and Approved Resolutions...................................................................41
 
Additional Legislative Initiatives.........................................................................................44
 
Figures
Figure 1. Map of Mexico, Including States and Border Cities......................................................4
 
Tables
Table 1. U.S. Assistance to Mexico, FY2005-FY2009...............................................................14
 
Table 2. FY2008 and FY2009 Mérida Funding for Mexico by Aid Account...............................20
 
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