Mexico-U.S. Relations: Issues for Congress

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Summary
The United States and Mexico have a close and complex bilateral relationship, with extensive
economic linkages as neighbors and partners under the North American Free Trade Agreement
(NAFTA). In recent years, security issues have dominated U.S.-Mexican relations, as the United
States has supported Mexican President Felipe Calderón’s campaign against drug trafficking
organizations (DTOs) through bilateral security cooperation initiatives including the Mérida
Initiative, an anti-crime and counterdrug assistance package first funded in FY2008. Immigration
and border security have also returned to the forefront of the bilateral agenda since Arizona
enacted a controversial state law against illegal immigration (S.B. 1070) on April 23, 2010. In
response to rising concerns about border security, President Obama deployed 1,200 National
Guard troops to support law enforcement efforts along the U.S.-Mexico border and the 111th
Congress approved $600 million in supplemental funds for border security (P.L. 111-230).
Now in the fifth year of his six-year term, President Calderón of the conservative National Action
Party (PAN) is focused on strengthening the Mexican economy, which grew by 5% in 2010 after
contracting by 6% in 2009, and combating organized crime and drug trafficking. Although the
Calderón Administration has arrested several top drug kingpins, the persistent and increasingly
brazen violence committed by the DTOs has led to significant criticism of Calderón’s anti-drug
strategy. As the 2012 presidential elections approach, the Mexican Congress, which is now
dominated by the Institutional Revolutionary Party (PRI), could be reluctant to give President
Calderón any major legislative victories. The PRI won nine of the twelve governorships contested
in the July 4, 2010, elections, while the PAN’s alliance with the leftist Party of the Democratic
Revolution (PRD) captured three governorships.
In recent years, U.S.-Mexican relations have grown stronger as the two countries have worked
together to combat drug trafficking and secure their shared border. On May 19, 2010, President
Calderón traveled to Washington D.C. for a state visit with President Obama during which both
leaders reaffirmed their commitment to working together on a wide range of bilateral issues. The
Obama Administration asked for $346.6 million in assistance for Mexico in its FY2011 budget
request, including $310 million in Mérida Initiative funding. In the absence of FY2011
appropriations legislation, the 111th Congress passed a series of continuing resolutions (P.L. 111-
242 as amended) to fund government programs, with the latest extension set to expire on March
4, 2011. The Continuing Resolution, as amended, continues funding most programs at the
FY2010-enacted level, with some exceptions. On February 14, 2011, the Obama Administration
submitted its FY2012 budget request to Congress. The request includes at least $328.6 million in
assistance for Mexico, including roughly $289.8 million in Mérida-related assistance.
Congress has maintained an active interest in Mexico with counternarcotics, border, and trade
issues dominating the agenda. Congress has appropriated some $1.5 billion in assistance for
Mexico under the Mérida Initiative and expressed concern about the slow delivery of that
assistance. The 112th Congress is likely to maintain a keen interest in how implementation of the
Mérida Initiative and related border security initiatives are proceeding, particularly now that
National Guard troops are on the Southwest border. Congress may also consider proposals for
comprehensive immigration reform. On the trade front, Congress is likely to maintain interest in
how the Obama Administration moves to resolve ongoing disputes related to trucking and tuna
with Mexico, facilitate commerce along the U.S.-Mexico border, and deepen cooperation under
NAFTA.