Mexico shares 3,155 kilometers of border with the United States and serves as one of the United States’ most important trading partners. The two countries have shared strategic interests relating to the economy, migration, counternarcotics, and anti-crime policies. Although their relationship has been rocky, it has proven to be crucial to the functioning of both countries. 

Fact Sheet

Population: 130,207,371 (July 2021 est.)

Capital: Mexico City (Ciudad de México)

System of Governance: Federal Presidential Republic

President: Andres Manuel Lopez Obrador

Majority Language: Spanish

Majority Religion: Roman Catholic

GDP Per Capita: $19,796

Global Freedom Score: 61/100

Early History

Expansionist advocate James K. Polk was elected US President in 1848, setting the stage for the Mexican-American War. The Mexican-American War is often referred to as the “original sin of their relationship.” It ended with the Treaty of Guadalupe Hidalgo which allotted more than half of Mexico to the United States, including Texas and parts of modern day California, New Mexico, Arizona, Utah, and Wyoming. 

The 1910 Mexican Revolution was the next challenge in the relationship. The United States was concerned that the revolution would inspire uprisings in the large Mexican population within its borders, and President Wilson placed an embargo on the country and sent the Marine Corps into a crucial port city.

President Roosevelt, initiated the Good Neighbor Policy between the two nations in his 1933 address, which stated “the definitive policy of the United States from now on is one opposed to armed intervention.” Roosevelt aimed to rekindle economic ties between the United States and Mexico. 

World War II and the Rest of the 20th Century

The newfound goodwill between the two nations carried over into international conflicts. Mexico supported the United States in World War II by sending troops to fight the Axis Powers and providing the United States’ economy with strategic metals, oil, rubber, food, and agricultural material for the war effort. After World War II, Mexico went through a stage of large economic growth and development known as the ”Mexican Miracle”. By 1950, foreign investment in Mexico was up to half a billion dollars, with much of it coming from the United States. 

The “Mexican Miracle” came to a sharp halt in the 1980s due to both political instability and concentration of wealth to the upper class. In 1994, the United States, Mexico, and Canada signed the North American Free Trade Agreement (NAFTA), which created a free trade zone for the three countries. This encouraged investment and increased market access. 

21st Century

Organized crime and drug trafficking across the US-Mexico border increased in the early 2000s. To combat this, the United States signed the Merida Initiative in October 2007 which provided rule-of-law and anti-drug assistance to government entities. Relations were strained by some of President Trump’s foreign policy decisions, like the Remain in Mexico Program and withdrawal from NAFTA. The Remain in Mexico Program, initiated in December 2018, required certain asylum-seekers arriving by land to the U.S.-Mexico border to return to Mexico for the duration of their trial in the U.S. Immigration Court. This policy was heavily criticized by both governments, as it returned many asylum-seekers back to unsafe conditions with little to no social, family, or legal support. NAFTA was replaced by a new United States-Mexico-Canada Agreement that did little to alter the trade dynamic between the three countries; however, it initiated sunset clauses on the deal and increased the automotive workforce and the United States’ dairy exports. 

The Biden Administration has aimed to restore closer ties with Mexico in fighting crime, drug trafficking, and tackling issues of migration, climate, and trade. Almost immediately after taking office, Biden ended Trump’s Stay In Mexico Policy. The two presidents met virtually to combat the COVID-19 and climate change, and increase economic cooperation

U.S. Strategic Interests

Economic interests: The United States serves as Mexico’s number one trade partner, and Mexico is the United States’ third largest trade partner. Top exports from Mexico to the United states include automobiles and auto parts, computer equipment, and other manufactured goods. The economy of Mexico is heavily reliant on exports to the United States, as roughly 85% of Mexico’s imports in 2019 were United States-bound. The Biden Administration ushered in a new era of economic policy centered on investments to curb carbon emissions and address climate change. In their joint statement, Biden and Obrador highlighted the need to cooperate on climate issues. Little progress has been made on this front, despite pressure from environmental advocacy groups. 

Migration: Mexico remains the largest country of origin of migrants in the United States, driven by high immigration in the 90s and early 2000s. Asylum requests at the U.S.-Mexican border have “doubled each year since 2015, reaching 70,300 in 2019” however asylum seekers are primarily from other Central American countries who transit through Mexico. Under the Trump Administration, immigration policies were characterized by America First Policies, prioritizing security at the border and decreasing immigration numbers through initiatives such as the “Zero-Tolerance Policy” and the Stay In Mexico Policy. Protecting the rights of Mexicans residing within the United States, including undocumented individuals, continues to be one of the top priorities of the Mexican government. Many Mexican border cities have been sheltering tens of thousands of migrants since 2019. The Biden Administration reversed many of these policies, but the future of many Mexican immigrants in the United States remains in question.
Drug Trafficking: Mexican drug trafficking organizations are “the greatest criminal threat” to the United States. Drug-trafficking groups import and distribute cocaine, fentanyl, heroin, marijuana, and methamphetamine in the United States. The 2007 Merida Initiative provides aid to the Mexican government to combat organized crime and drug trafficking. Since the implementation of the Merida Initiative, the United States has allocated nearly $3 billion in security and counternarcotics assistance. Despite the implementation of numerous initiatives to fight crime and drug-trafficking, the Merida Initiative has thus far proven to be ineffective in improving security in Mexico because it escalated violence and did not address systemic corruption.