Trade & Economics

Agricultural Trade

Agricultural trade and investment plays an important role in U.S.-Mexico economic relations, even with the uneven size of the two economies. The North American Free Trade Agreement (NAFTA) continues to have a positive impact on agricultural trade and the agriculture sector in Mexico, according to the U.S. Department of Agriculture.

Access the full text of Agricultural Trade Fact Sheet (PDF, 236 Kb)

Auto Industry

The automobile industry represents approximately 4% of Mexico’s GDP, 20% of national manufacturing output, and 23% of total exports. Mexico exports 82% of its total vehicle production. To date the total value of exports has reached USD55 billion and the industry supports more than 600,000 direct and indirect jobs according to the Mexican Secretariat of Economy.

Access the full text of Auto Industry Fact Sheet (PDF, 328 Kb)

Bilateral Trade

The United States is Mexico’s largest trading partner. Total U.S. goods trade with Mexico in 2013 equaled USD506.6 billion, 2.8% more than in 2012. Mexico exports more to the United States in goods and services in just over a month than it does in one year to the 27 countries of the European Union (EU).

Access the full text of Bilateral Trade Fact Sheet (PDF, 286 Kb)

Electricity

The state-owned Comisión Federal de Electricidad (CFE) is the dominant player in the generation sector, controlling over three-fourths of installed generating capacity. CFE also currently holds a monopoly on electricity transmission and distribution. In December 2013, the Mexican Congress passed an energy reform that will allow private sector participation in electricity generation.

Access the full text of Electricity Fact Sheet (PDF, 498 Kb)

Foreign Direct Investment (FDI)

Proximity to the United States and macroeconomic stability make Mexico an attractive location for foreign direct investment (FDI). From 2000 through 2012, U.S. foreign direct investment in Mexico totaled USD291.7 billion (51.4%), concentrated largely in the manufacturing (43%) and financial sectors (20%).

Access the full text of Foreign Direct Investment Fact Sheet (PDF, 513 K) 

Macroeconomics

Mexico’s real GDP at the end of 2012 reached USD 997 billion. Real GDP growth during 2013 was 1.1%. Projected real GDP growth for 2014 is 3%. GDP per capita is estimated at USD 15,600.

Access the full text of Mexican Economy Fact Sheet (PDF, 256 Kb)

Mining

In 2012, the Mexican mining industry generated USD 22.5 billion in foreign exchange inflows, positioning it as the fourth largest industrial sector after the automotive, electronics, and petroleum sectors. According to Mexico’s Mining Chamber (Camimex), the mining sector accounts for 10% of the country’s industrial GDP and 3% of its national GDP.

Access the full text of Mining Fact Sheet (PDF, 793 Kb)

NAFTA

The North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico entered into force on January 1, 1994, and created the world’s largest free trade area. NAFTA links more than 461 million people producing USD 17 trillion worth of goods and services annually (2011). The dismantling of trade barriers and the opening of markets has led to economic growth and rising prosperity in all three countries.

Access the full text of NAFTA Fact Sheet (PDF, 658 Kb)

Oil & Gas

Mexico is an important partner in the U.S. energy trade. The energy relationship between Mexico and the United States is key for both countries’ economies. Mexico is a major non-OPEC oil producer (9th in the world) and among the largest sources of U.S. oil imports (3rd). The United States is Mexico’s #1 supplier of gasoline and natural gas.

Access the full text of Oil & Gas Fact Sheet (PDF, 268 Kb)

Renewable Energy

Mexico has enormous renewable energy potential: as much as 24,300 MW in solar, 40,268 MW in wind, and 40,000 MW in geothermal, in addition to excellent possibilities for biofuels. Mexico currently generates 23% of its electricity through renewable and clean fuel sources, including hydroelectric and geothermal.

Access the full text of Renewable Energy Fact Sheet (PDF, 615 Kb)

Standard of Living in Mexico

In Mexico, poverty rates remain high and income inequality is stark. There are 53.3 million Mexicans living in poverty which represents just over 45% of the population. Lack of formal employment for poor Mexicans is a major driver of migration. Security and human rights issues continue to diminish living standards and violence is estimated to cost 8 to 15% of GDP.

Access the full text of Standard of Living Fact Sheet (PDF, 735 Kb)

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FACT SHEETS

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Extraditions

The USG is working closely with Mexican counterparts to make effective use of our bilateral extradition treaty and other legal mechanisms in order to ensure that our shared border does not serve as a barrier behind which fugitives from justice may flee, find safe haven, and continue to commit crimes.

The overwhelming majority of fugitives extradited by Mexico are wanted in the U.S. for the most serious crimes, including murder, rape, sexual offenses against children, kidnapping, and drug trafficking. Most of the fugitives returned to the U.S. by extradition are Mexican citizens.

Aside from extraditions, Mexican immigration authorities, in cooperation with U.S. law enforcement agencies, have been aggressively making use of Mexican immigration laws to deport non-Mexican fugitives to the United States. Since 2005, Mexico has deported between 150 and 200 fugitives to face justice in the U.S.

Reducing U.S. Drug Consumption

The United States recognizes the importance of preventing drug use and treating addiction, in addition to fighting associated criminal activities. More Information can be found at: White House Office of Drug Policy.

Our National Drug Control Strategy has three elements:

  • Stopping use before it starts
  • Intervening and healing America’ drug users
  • Disrupting the market

The U. S. 2008 budget for drug control is about $13 billion dollars:

  • 36% dedicated to reducing demand (treatment & prevention)
  • 28% for domestic law enforcement
  • 25% interdiction (at borders and at home)

These programs show results:

  • Teen drug use is down 23% since 2001 (840,000 fewer users)
  • Workplace drug use is at its lowest level in 18 years.
  • Since 1988, positive drug tests have fallen from 13.6% in 1988 to 3.8% in 2006.

Law enforcement programs have also produced significant results:

  • 29,400 arrests on drug-related charges.
  • Nearly 70,000 kg in cocaine and over 320,000 kg of marijuana

Access to Recovery is a nation-wide program that provides vouchers for treatment as well as recovery support services. According to the National Survey on Drug Use and Health, over 20 million Americans need treatment for illicit drug or alcohol use.

Overall illicit drug use among teens ages 12-17 is at a 5-year low, according to the 2006 National Survey on Drug Use and Health, the largest and most comprehensive study of drug use in the United States.

According to the same study, approximately 35.3 million Americans aged 12 & older had tried cocaine at least once in their lifetimes — 14.3% of the population aged 12 and older.

From 1995-2005, the number of admissions to treatment for methamphetamine abuse increased from 47,695 in 1995 to 152,368 in 2005.

Nearly 90% of the cocaine available in the U.S. crosses the Southwest Border.

ONDCP FACT SHEETS

FACT SHEETS

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In December 2008, Mexico and the United States signed the first Letter of Agreement (LOA) for the Merida Initiative, opening a chapter of historic cooperation and acknowledging the shared responsibilities of the United States and Mexico to counter drug-fueled violence threatening citizens on both sides of the border.  Through six years of implementation, the Merida Initiative has led to a new architecture for bilateral security cooperation, provided tangible support to Mexico’s security and judicial institutions and helped to galvanize U.S. efforts to stop the flow of weapons, money and the demand for drugs.  Initially signed by presidents Calderon and Bush, the Merida Initiative continues under Presidents Peña Nieto and Obama.

With $2.3 billion in appropriated funds from the U.S. Congress, the Merida Initiative has delivered over $1.4 billion in equipment and training to date.  The Strategic Framework for implementing the myriad of Merida Initiative activities and programs is referred to as the Four Pillars, each of which pulls together Merida Initiative programs under strategic objectives.  Taken together, these four objectives will strengthen both of our societies in the fight against organized crime and violence and will help drive the transformation of our bilateral security relationship.

PILLAR ONE – Disrupt Capacity of Organized Crime to Operate

Diminish the power of Mexican organized criminal groups by systematically capturing and incarcerating their leaders and by reducing drug trade revenues by interdicting drugs, stopping money laundering, and diminishing production.  Through equipment, technology, and training, the Merida Initiative will support better investigations, more captures and arrests, successful prosecutions, and shipment interdiction.

PILLAR TWO – Institutionalize Capacity to Sustain Rule of Law

Enhance the capacity of Mexican public security, border and judicial institutions to sustain the rule of law.  Merida Initiative programs will strengthen the capabilities of key institutions to improve internal controls, further professionalize the military and police, reform corrections institutions, and assist in the transition to the New Criminal Justice System.

PILLAR THREE – Create a 21st Century Border Structure

Facilitate legitimate commerce and movement of people while curtailing the illicit flow of drugs, people, arms, and cash.  The Merida Initiative will provide the foundation for better infrastructure and technology to strengthen and modernize border security at northern and southern land crossings, ports, and airports.  Professionalization programs will transfer new skills to the agencies managing the border and additional non-intrusive technologies will assist in the detection of criminal activities.

PILLAR FOUR – Build Strong and Resilient Communities

Strengthen communities by creating a culture of lawfulness and undercutting the lure and power of drug trafficking organizations.  By implementing job creation programs, engaging youth in their communities, expanding social safety nets, and building community confidence in public institutions, Merida Initiative assistance will test new initiatives to strengthen Mexican communities against organized crime.

PILLAR ONE – Disrupt Capacity of Organized Crime to Operate

  • Four CASA 235 maritime surveillance aircraft, valued at $50 million each, were delivered to the Mexican Navy (SEMAR) and one Dornier 328 surveillance aircraft, valued at $21 million, was delivered to the Federal Police.
  • A secure, cross-border telecommunications system between ten U.S. and Mexican border sister cities, valued at $13 million dollars, has been established.  This system provides public security forces on both sides of the border the capability to request and exchange information regarding active criminal investigations.  Additionally, through a $17 million dollar Merida Initiative project, secondary inspection points for persons who warrant additional scrutiny have been established in ten international ports of entry.
  • Nine UH-60M Blackhawk helicopters were delivered—three to SEMAR and six to the Federal Police.  These aircraft have proven invaluable in confronting criminal organizations who would otherwise have used the advantage of difficult terrain to operate with impunity.

PILLAR TWO – Institutionalize Capacity to Sustain Rule of Law

  • The Merida Initiative Corrections Program provides assistance to prisons throughout Mexico working to achieve international accreditation.  Since 2011, 20 Mexican correctional facilities have received accreditation.
  • The Merida Initiative has provided $24 million of training and equipment support to the national vetting, internal affairs and kardex programs, a major effort by the Government of Mexico to stamp out corruption and build trustworthy institutions.
  • The Merida Initiative has committed over $247 million in support of Mexico’s transition to the New Criminal Justice System.  The wide range of projects includes state-level attorneys general exchanges; forensic lab assessments, training, certification, accreditation, and equipment; and law school seminars for professors and students.  The support also includes courtroom IT equipment packages essential for oral trials and training for prosecutors, investigators, and other justice sector personnel.
  • The Merida Initiative is providing assistance to professionalize Mexican federal, state, and municipal law enforcement agencies and to increase the capacity of their specialized investigative units.  This assistance covers a range of training, including instructor development for federal and state police academy instructors, leadership and supervision, basic police skills, and specialized investigative skills.  Over $5 million has been invested in infrastructure improvements and equipment donations to academies in five states, with more donations planned for both state and federal academies.

PILLAR THREE – Create a 21st Century Border Structure

  • Delivery of over 300 canines trained in the detection of narcotics, weapons, ammunitions, and currency to the Federal Police, the Attorney General’s Office, and Mexico’s Customs Agency.  Each of these agencies is in the process of building or remodeling their own K9 team training facilities.  Additionally, trainers are being certified to train officers in Mexico.
  • The acquisition and use of non-intrusive inspection equipment (NIIE) continue to be a critical component to securing the borders of Mexico in the fight to detect and prevent the flow of illicit goods.  Through the Merida Initiative, the Border Security program has contributed $112 million in technology including NIIE, improvement of infrastructure, and personnel training in the areas of border security.

PILLAR FOUR – Build Strong and Resilient Communities

  • Merida Initiative Drug Demand Reduction (DDR) programs seek to increase Mexico’s capacity to reduce illegal drug consumption.  Since 2009, DDR programming has provided technical assistance for the creation and expansion of drug treatment courts (DTCs) in Mexico and contributed $2.5 million to the Organization of American States to implement new courts in additional Mexican states.  Currently, five states in Mexico have DTCs, including the State of Mexico, Chihuahua, Nuevo León, Morelos, and Durango.
  • Merida Initiative Culture of Lawfulness (COL) programs aim to instill a sense of individual responsibility to uphold the rule of law in Mexico, with the larger goal of reducing crime and corruption.  COL education is now part of the junior high school curricula in all Mexican states.  During the academic 2013-2014 academic year, 856,348 students received COL training as part of their education.
  • COL programs supported the placement of citizens’ watch booths in 73 local offices of the Mexico City district attorney, a program now also operating in Puebla and the State of Mexico.  Citizens monitoring the booths provide information to people reporting crimes, advise them of their rights, and invite them to file criminal complaints, which has led to greater accountability and increased customer service in district attorneys’ offices.

LATEST FACT SHEETS – MERIDA

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Agricultural Trade

Agricultural trade and investment plays an important role in U.S.-Mexico economic relations, even with the uneven size of the two economies. The North American Free Trade Agreement (NAFTA) continues to have a positive impact on agricultural trade and the agriculture sector in Mexico, according to the U.S. Department of Agriculture.

Access the full text of Agricultural Trade Fact Sheet (PDF, 236 Kb)
Auto Industry

The automobile industry represents approximately 4% of Mexico’s GDP, 20% of national manufacturing output, and 23% of total exports. Mexico exports 82% of its total vehicle production. To date the total value of exports has reached USD55 billion and the industry supports more than 600,000 direct and indirect jobs according to the Mexican Secretariat of Economy.

Access the full text of Auto Industry Fact Sheet (PDF, 328 Kb)

Bilateral Trade

The United States is Mexico’s largest trading partner. Total U.S. goods trade with Mexico in 2013 equaled USD506.6 billion, 2.8% more than in 2012. Mexico exports more to the United States in goods and services in just over a month than it does in one year to the 27 countries of the European Union (EU).

Access the full text of Bilateral Trade Fact Sheet (PDF, 286 Kb)

Electricity

The state-owned Comisión Federal de Electricidad (CFE) is the dominant player in the generation sector, controlling over three-fourths of installed generating capacity. CFE also currently holds a monopoly on electricity transmission and distribution. In December 2013, the Mexican Congress passed an energy reform that will allow private sector participation in electricity generation.

Access the full text of Electricity Fact Sheet (PDF, 498 Kb)

Foreign Direct Investment (FDI)

Proximity to the United States and macroeconomic stability make Mexico an attractive location for foreign direct investment (FDI). From 2000 through 2012, U.S. foreign direct investment in Mexico totaled USD291.7 billion (51.4%), concentrated largely in the manufacturing (43%) and financial sectors (20%).

Access the full text of Foreign Direct Investment Fact Sheet (PDF, 513 K) 

Macroeconomics

Mexico’s real GDP at the end of 2012 reached USD 997 billion. Real GDP growth during 2013 was 1.1%. Projected real GDP growth for 2014 is 3%. GDP per capita is estimated at USD 15,600.

Access the full text of Mexican Economy Fact Sheet (PDF, 256 Kb)

Mining

In 2012, the Mexican mining industry generated USD 22.5 billion in foreign exchange inflows, positioning it as the fourth largest industrial sector after the automotive, electronics, and petroleum sectors. According to Mexico’s Mining Chamber (Camimex), the mining sector accounts for 10% of the country’s industrial GDP and 3% of its national GDP.

Access the full text of Mining Fact Sheet (PDF, 793 Kb)

NAFTA

The North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico entered into force on January 1, 1994, and created the world’s largest free trade area. NAFTA links more than 461 million people producing USD 17 trillion worth of goods and services annually (2011). The dismantling of trade barriers and the opening of markets has led to economic growth and rising prosperity in all three countries.

Access the full text of NAFTA Fact Sheet (PDF, 658 Kb)

Oil & Gas

Mexico is an important partner in the U.S. energy trade. The energy relationship between Mexico and the United States is key for both countries’ economies. Mexico is a major non-OPEC oil producer (9th in the world) and among the largest sources of U.S. oil imports (3rd). The United States is Mexico’s #1 supplier of gasoline and natural gas.

Access the full text of Oil & Gas Fact Sheet (PDF, 268 Kb)

Renewable Energy

Mexico has enormous renewable energy potential: as much as 24,300 MW in solar, 40,268 MW in wind, and 40,000 MW in geothermal, in addition to excellent possibilities for biofuels. Mexico currently generates 23% of its electricity through renewable and clean fuel sources, including hydroelectric and geothermal.

Access the full text of Renewable Energy Fact Sheet (PDF, 615 Kb)

Standard of Living in Mexico

In Mexico, poverty rates remain high and income inequality is stark. There are 53.3 million Mexicans living in poverty which represents just over 45% of the population. Lack of formal employment for poor Mexicans is a major driver of migration. Security and human rights issues continue to diminish living standards and violence is estimated to cost 8 to 15% of GDP.

Access the full text of Standard of Living Fact Sheet (PDF, 735 Kb)

MORE INFORMATION

FACT SHEETS

All downloadable documents on this page require the Adobe Acrobat® Reader.  You may download a free version of Acrobat by visiting the Adobe website.

The U.S.-Mexico High Level Economic Dialogue (HLED) announced by Presidents Barack Obama and Enrique Peña Nieto in May 2013 focuses on advancing strategic economic and commercial priorities which are central to promoting mutual economic growth, job creation, and global competitiveness for Mexico and the United States.

The HLED meets annually at the cabinet level, and builds on and promotes  sustained progress in a range of existing successful bilateral dialogues and working groups.  Mexico and the United States have developed a work plan laying out potential areas for cooperation under three broad pillars including:  promoting competitiveness and connectivity; fostering economic growth, productivity, entrepreneurship, and innovation; and partnering for regional and global leadership.