NDN Blog

The US and Mexico: 2 Events, 4 Backgrounders

This month, President Obama travels to Mexico for the North American Leaders’ Summit on February 19th, and Secretary of Commerce Pritzker led her first trade mission there in Mexico February 3rd-7th.  Mexico continues to play a vital role in current US policy debates including immigration reform and trade.  In response to this growing bilateral engagement, NDN and the New Policy Institute have prepared the following events and informational backgrounders on our vital and modernizing US-Mexico partnership.

Please join us for two events at NDN and NPI:

For more information on how Mexico and the US-Mexico relationship are growing, deepening, and modernizing, see the following materials from NDN and NPI:

We hope you find these materials helpful, and we look forward to discussing more in the upcoming weeks.

Invite: Thurs, Feb 27th- A Forum on US-Mexico w/ Shannon O’Neil and Eric Farnsworth

Updated February 27, 2014

On February 27th, we invite you to a public forum reflecting on a very significant month of US-Mexico engagement. Leading experts on Mexico, Shannon O’Neil, Senior Fellow for Latin America Studies at the Council on Foreign Relations, and Eric Farnsworth, Vice President of the Council of the Americas and Americas Society, will offer their assessment of President Obama’s trip to Mexico, as well as the status and future of the US-Mexico bilateral partnership.  Nelson Cunningham of McLarty Associates will moderate the discussion, leaving time for audience questions.  Please join us!

"A Forum on US-Mexico w/ Shannon O’Neil and Eric Farnsworth"
Thurs, Feb 27th, 12pm-1:15pm
Lunch served at 12 noon, Presentation will begin at 12:15pm
NDN Event Space: 729 15th St NW, 1st Floor, Washington, DC 20005
Please 
RSVP here

Mexico is one of our most important bilateral relationships and plays a vital role in current US policy debates, including immigration reform and trade.  President Obama traveled to Mexico yesterday for the North American Leaders’ Summit, and Secretary of Commerce Pritzker’s first trade mission took place there February 3rd-7th. The key deliverables from yesterday’s summit focus on our shared prosperity through travel and trade, increasing joint innovation and education, as well as issues of energy, climate, security, and regional engagement. Before landing in Mexico, President Obama signed a new executive order on “Streamlining the Export/Import Process for America’s Businesses,” which will strengthen our bilateral trade and travel.  This followed the February 18th DHS and GSA announcement of $61.6 million to expand and modernize the Laredo border crossing.

For more information prior to the event see these backgrounders and recent piece from NDN/NPI:

Also see Shannon O’Neils’s widely-acclaimed book on US-Mexico and recent article:

And Eric Farnsworth’s recent congressional testimony and article:

We hope you find these materials helpful, and we look forward to discussing more on the 27th.

Note: For those who cannot attend the event in person, it will be livestreamed here, and the video recording will be posted later.

Invite: Tues, Feb 18th- “US-Mexico: A Vital Modern Partnership”

*Changed from originally scheduled date*

February marks a big month in US-Mexico Relations. Last week, February 3rd-7th, Secretary of Commerce Penny Pritzker led a delegation of 17 US businesses on her first trade mission to Mexico City and Monterrey, Mexico. Next week, February 19th, President Obama will join his North American counterparts Canadian Prime Minister Harper and Mexican President Peña Nieto in Toluca, Mexico for their annual North American Leaders’ Summit.

In one public address during her trip, Secretary Pritzker remarked on the advance in US-Mexico relations:

“We both believe in the power of democracy and a vibrant middle class. We both believe that our growing bilateral trade, investment, and supply chains have made us stronger. And we both believe that entrepreneurship and innovation are crucial to our global competitiveness in the 21st century. The mere fact that we are gathered here today shows how the ties between our countries have dramatically deepened. Our commercial and economic relationship has become one of the most fruitful in the world – defined by openness, cooperation, and collaboration.”

While there is more to do, Mexico has made tremendous strides toward becoming a modern, democratic, economically developed country over the last generation.  As it has modernized and opened its economy, trade between the US and Mexico has skyrocketed from $80 billion to over $500 billion per year, and supports six million US jobs.  Its ambitious constitutional reform agenda has gained it international credibility and even more financial strength in just the last year.

As we progress in debates on important policy issues including immigration reform and the Trans-Pacific Partnership, it is crucial that we employ a broader understanding of our relationship with our neighbor to the south.  The US-Mexico relationship is one of mutual and essential opportunity for our future as a country and a region.  

Please join us Tuesday for a lunchtime discussion of “US-Mexico: A Vital Modern Partnership.” We will present and release to the public an updated version of a presentation on Mexico, the US-Mexico Border, and Immigration Reform, followed by an interactive discussion.

Lunchtime Discussion: “US-Mexico: A Vital Modern Partnership”
RSVP here
Tuesday, February 18th, 12-1:15pm
Lunch served at 12 noon, Presentation will begin at 12:15pm
NDN Event Space: 729 15th St NW, 1st Floor, Washington, DC 20005

For more information see our recent backgrounders on the US-Mexico Partnership and the Border.

Administration’s Border Strategy Has Yielded Very Strong Results

In light of the recently released GOP Standards for Immigration Reform and ongoing discussion about the safety of the US-Mexico border, NDN and the New Policy Institute have prepared the following backgrounder.  A quick fact sheet on the progress made on the US side of the border in recent years is below, and the full document with charts is attached or available here

A statement from NDN President, Simon Rosenberg:

“As House Republicans begin to put together their approach to immigration reform, it is important for them to acknowledge, as their colleagues in the Senate did this past spring, that tremendous progress has been made on the US-Mexican border over the past decade.  Investments of tens of billions of dollars, better strategies and greater cooperation with Mexico along the border has brought results – the border is much safer, net migration of unauthorized migrants has plummeted, all while trade with Mexico has increased to historic levels.  Given the obvious difficulties of managing this border – 2,000 miles long, containing the busiest land border crossing in the world, and enabling half a trillion dollars of trade each year – the Administration’s track record on the border is a very good one. 

It is important as we enter this debate that we have a fact-based conversation about the US-Mexico border.  Much has gone right.  And if the Republicans have the ideas and the money to improve upon what has done, they should put their plan on the table right now, without delay, and let the debate begin.” 

________________________________________________________________________________

The Administration’s Border Strategy Has Yielded Very Strong Results

Summary

Over the past decade, more money, a better strategy, and enhanced cooperation with Mexico has made the US side of the border far safer, the flow of undocumented migrants over the border has plummeted, and spillover violence is rare.  Despite this historic enforcement buildup, trade with Mexico has exploded, almost doubling in the past 5 years.  Below please find some background data on the very real progress which has been made in recent years.  A series of charts follow.

Key Data Points

A Border Build Up, A Big Decrease in Border Crime – US border enforcement spending has tripled over the last decade from $6.2 billion in 2002 to $18 billion in 2012.  Boots on the ground – border patrol - have doubled from 10,650 in 2004 to 21,300 in 2012.

Despite increasing organized crime violence in Mexico, violent crime on the US side of the border has decreased in the last decade: in the 12 largest border cities, violent crime incidents have dropped by about 25% while population has increased.  The two safest large cities in the entire US (population over 500,000), according to violent crime rates, are El Paso and San Diego, the two largest cities on the US-Mexican border.   Spillover crime from Mexico is rare, and not a significant factor in the border region. 

Unauthorized Flow Has Plummeted, Effectiveness Way Up – In the five high-traffic corridors which experience most of the flow of unauthorized migrants, two already have achieved a 90% effectiveness rate (apprehensions plus turn backs per year divided by the estimated total number of illegal entries per year), and two are over 80%. 

Because of the drop in flow and increase in effectiveness, the apprehension rate per border patrol agent has dropped from 327 in 1993 to just 19 in 2012.

The average annual inflow of unauthorized immigrants is now nearly half of what it was at its height, declining from 550,000 or more to 300,000 over the last decade. 

Total migration from Mexico to the US has decreased by 80% from 770,000 in 2000 to 140,000 in 2010. Net migration with Mexico has dropped to zero or less.

Additionally, this year the US and Mexico just announced they would increase binational security cooperation, including communications and intelligence sharing and, for the first time, joint border patrols of the US-Mexico border.  Mexico has also committed to strengthening its southern border to stop the flow of Central and South American migrants through Mexico to the US.

Trade With Mexico Has Exploded, More Infrastructure Needed To Support This Growth – Meanwhile, goods and services trade with Mexico across this very same fortified border has exploded, growing from $300 billion in 2009 to $536 billion in 2012.  Mexico is now the US’s third largest trading partner.

Mexico is the US’s second largest export market, buying twice the value of US goods that China does, and outspending Japan, Germany, and the UK combined.  6 million US jobs depend on US-Mexico trade.

The FY 2014 budget bill acknowledges the need for more infrastructure spending at the border to facilitate this cross-border trade and tourism.  It appropriated $128 million in for California’s San Ysidro crossing, the world’s busiest land port of entry; funding for an additional 2,000 CBP officers; and it supports a 5-year public-private partnership program, an expansion of a current PPP program, to allow CBP “to enter into partnerships with private sector and government entities at ports of entry,” which could provide additional needed funding.  These measures will allow for increased security, decreased wait lines, a greater flow of trade, and economic growth for the border region and the greater US economy.

Mexico Is Growing, Modernizing – See this fact sheet on Mexico’s economic progress over the past 20 years.  

Also see accompanying charts here.

Simon To Speak on Immigration Reform in San Francisco This Friday, March 14th

We are pleased to announce that NDN and New Policy Institute President Simon Rosenberg will be participating in the World Affairs Council annual conference "WorldAffairs 2014: Enhance Your World View" March 14th-15th in San Francisco.  Each year the conference seeks to gather experts to share and discuss the most pressing global issues.

As our national debate over how to fix the US’s broken immigration system continues into 2014, this year’s conference begins with a conversation on this timely topic.  Simon will join Jose Antonio Vargas, Pulitzer Prize-Winning Journalist and Founder of DefineAmerican.com, and Tara Magner, Program Officer in the Policy Research area of U.S. Programs at the MacArthur Foundation, for a keynote conversation on “The Human Face of Immigration” at 1:15pm Friday, March 14th.

World Affairs writes:

"Comprehensive immigration reform is at the top of the policy agenda in 2014. While the debate may be no less contentious than it has been in the past, there is growing consensus that a solution can be found, not only for those already here but for those who would like to come. Perspectives vary regarding immigrants in the United States with both positive and negative viewpoints, but many agree that workers are needed across the spectrum—high-tech, low-tech or no-tech. From the food that we eat to the high-tech start ups, large portions of the US economy are dependent upon foreign-born workers. Who are these people and how can immigration policy best be shaped to help fuel America’s innovation economy? What is the status of this debate?"

To register or find out more about the conference, see here.

Video of the panel is available here (added 3/14/14).

NDN/NPI Backgrounder: US-Mexico: A Vital, Modern Economic Partnership

Full memo pdf attached

In the next few weeks, the Obama administration embarks upon two significant trips to Mexico.  From February 3rd to 7th Secretary of Commerce Penny Pritzker will lead her first trade mission to Monterrey and Mexico City accompanied by a delegation of representatives from 17 major US businesses.  On February 19th, President Obama will join Canadian Prime Minister Stephen Harper and Mexican President Enrique Peña Nieto at this year’s North American leaders’ summit in Toluca, Mexico.  Both trips are expected to include discussions of economic competitiveness for the region, trade and investment, and security. 

These crucial dialogues coincide with the 20th anniversary of the entry into force of the North America Free Trade Agreement, ongoing US Congressional efforts to pass meaningful immigration reform legislation, as well as Trans'Pacific Partnership negotiations.  We must evaluate and better understand the gains of the last two decades for both the US and Mexico as our leaders seek to build upon them moving forward.  As we look to the next twenty years, the US has the opportunity to deepen its partnership with Mexico and North America, to strengthen economic development, job creation and social growth in the US and abroad, and to ensure that the US and North America remain strong in an age of increasing global competition.

We offer up the following backgrounder on the current state of our southern neighbor Mexico and our North American partnership.  While there is still more to do, Mexico has made tremendous strides toward becoming a modern, democratic, economically developed country since the implementation of NAFTA.  As it has modernized and opened its economy, trade between the US and Mexico has skyrocketed and supports six million US jobs.  The Trans Pacific Partnership could be a means of further strengthening and expanding that growth.

See the following for more information.

Background on Mexico, North America

Since 1993, the year before NAFTA went into effect, Mexico’s:

Skyrocketing US-Mexico trade and tourism, job growth, and progress at the border:

  • US-Mexico trade goods and services trade has increased six-fold, from $80 billion to over $500 billion. Mexico is now the US’s third largest trading partner, second largest export market.  We trade more with Mexico today than Japan, Germany and the UK combined.  Mexico buys twice as much from the US as China does, with 1/11 the population, and more from Brazil, Russia, India and China (the BRICs) combined.
  • Mexican tourism to the US ranks second for number of visitors to the US and fourth for level of spending in the US.
  • 14 million jobs in the US are dependent on trade with NAFTA countries, 6 million with Mexico alone.
  • 10% of people living in the US today are of Mexican origin, and about 10% of people born in Mexico live in the United States. 
  • In recent years, net migration from Mexico to the US has dropped from 770,000 to zero.
  • Despite massive organized crime violence in Mexico, the border on US side is safer- the two safest large cities in the US according to violent crime rates are El Paso and San Diego.
  •  While Mexico faces great challenges in strengthening its rule of law and eliminating the threat of organized crime, the US shares in that challenge.  Violence in Mexico has been significantly driven by US drug habits, and weak response to guns smuggled from the US into Mexico.

Mexico is becoming a modern country:

  • After 70 years of single-party rule, Mexico has transitioned to a more liberal democracy.  It successfully transferred party rule in the 2000 and 2012 presidential elections.  Its executive, legislative, and judicial branches operate independently, as does the Church and press from the state.
  • In the past year, President Enrique Peña Nieto has championed an ambitious reform agenda, including education, telecommunications, taxes, energy, elections and more.
  • Mexico has transformed from a protectionist state to one of the most open countries- it has free trade agreements with twice as many countries as the US does.
  • At Davos, Mexico was specially acknowledged among OECD countries for its growth and reforms, and received over $7 billion in investments from major corporations.

Images: Among Major US Trading Partners, NAFTA Countries Buy More Goodsand Support More US Jobs
(See attached for more images)

U.S. Trade With NAFTA

Source: U.S. Census Bureau Credit: Danny DeBelius, Emily Siner / NPR

 

Further Reading:

General Background

TPA/TPP

Mexico/North America

Open Position: NDN/NPI Economic Policy Intern

Economic Policy Intern, Spring Semester 2013, 15-20 hours/week minimum, unpaid

About the Position: NDN and the New Policiy Institute seek a part-time intern who will focus on economic policy and general research assistance.  The intern will learn from NDN’s years of economic and globalization research and join the team in better defining this moment of North American relations and exploring the possibilities of the current US global trade agenda. He/she will report to the 21st Century Border Initiative Policy Director.

Qualifications: The ideal candidate is an upperclass undergraduate student or current graduate student with a background in economics and political science, with an interest in the Americas. He/she must possess strong research and writing skills, and be able to work independently and communicate with high level staff both at NDN and elsewhere. Knowledge of social media desired. Spanish proficiency is a plus.

To apply, please send cover letter (including your schedule availability), resume, and brief writing sample (1000 words max.) to ebuckhout@ndn.org by January 30th.

In Omnibus, Smart Investments in Border Trade and Infrastructure

Updated from original version

NDN applauds the southern border provisions included in the 2014 bipartisan omnibus spending bill. These provisions, including much-needed additional Customs and Border Protection (CBP) officers, funding for port of entry infrastructure, and a public-private partnership pilot program, demonstrate that Congress is embracing a more holistic strategy for its southern border. That strategy continues to include border security enforcement while incorporating a greater focus on facilitating our burgeoning trade and tourism across the US-Mexico Border.

About $1.2 billion worth of trade crosses the US southern border per day. Trade with Mexico has skyrocketed in the last 2 decades to over $500 billion in 2012. Mexico is the US’s second largest export market, third largest trading partner overall. Trade with Mexico supports 6 million jobs in the US alone. In the post 9/11 era, the US has successfully increased its border security, tripling funding, doubling border patrol staff, increasing apprehensions and deportations of people crossing illegally. El Paso and San Diego, two of the largest border cities, have the lowest crime rates of large cities in the whole US. Yet as trade has continued to successfully expand, understaffed ports of entry and increased delays at the border have cost the US billions in additional revenue and jobs.

Congress’s prioritization of additional customs inspectors and infrastructure spending evidences the decline of an enforcement-only approach at the border. Policies like the “border surge” in the Senate immigration bill, which allotted nearly $50 billion for additional border patrol, fencing, and military equipment at the border, have been exchanged for smaller targeted spending proposals. The $128 million in appropriations allotted for California’s San Ysidro, the world’s busiest land port of entry, will allow for increased security, decreased wait lines, a greater flow of trade, and economic growth for the border region and the greater US economy. The 2,000 additional CBP officers slated for the busiest ports of entry will do the same. A 2013 USC study estimates that one additional CBP officer could facilitate an additional $2 million in GDP growth, $640,000 worth of time savings, and 33 jobs. The omnibus bill also includes a 5-year public-private partnership program, an expansion of a current PPP program, to allow CBP “to enter into partnerships with private sector and government entities at ports of entry” which could provide additional needed funding.

These border spending provisions show bipartisan bicameral movement forward toward embracing a broad, holistic strategy for a 21st Century US-Mexico Border.  As we venture into 2014, NDN remains optimistic that Congress can pass meaningful immigration reform that continues in this spirit. We hope it will incorporate related CBP and infrastructure investments, like those included in Senator Cornyn’s RESULTS Act and Representatives Grijalva and Vela’s CIR ASAP bill. An immigration reform compromise should continue to include smart and targeted border enforcement for local and national security; more staffing, infrastructure, and public-private partnership support will ensure that the United States also continues to grow its globally competitive economy while meeting the needs of its vast border region and strengthening its North American community.

20 Years of NAFTA: Looking Back to Look Forward

Updated 1/4/14

January 1, 2014 marks the 20 year anniversary of the implementation of the North American Free Trade Agreement (NAFTA) among the United States, Canada, and Mexico. This New Year’s Eve, as we reflect on the past year and look ahead to the next, we also take the opportunity to reflect on the success of the past 20 years of NAFTA and look forward to the possibility it has created. If these three nations continue to build upon the growth and strengthening relationships NAFTA has begun, the next 20 years hold immense promise for a competitive North American Region.

NAFTA formed the world’s largest free trade area, including 450 million people and producing $17 trillion worth of goods and services. Since 1994, U.S. trade with Canada and Mexico has more than tripled to $1.2 trillion, and they are the U.S.’s first and second export markets, accounting for about a third of all U.S. Exports. While some sectors have benefited more than others, an estimated additional 5 million U.S. jobs were supported by the increase of trade generated by NAFTA. Since 1993, GDP in the U.S., Canada, and Mexico has grown more than that of industrialized nations as a whole, about 53%, increasing by 63%, 66%, and 65% respectively.

While NAFTA was negotiated in 1992 under Republican President George H. W. Bush, it was ratified under Democratic President Bill Clinton in 1993. This bipartisan implementation of a shared national and international agenda offers a beacon of hope for the future. In 2014 the Obama administration will continue to work on immigration reform and the Trans Pacific Partnership. These items will shape not only Obama’s second term, but the future of North American community. As he engages with Congress, the President should draw on NAFTA’s bipartisan legacy of ambitious forward thinking and regional partnership to strengthen the United States and the North American region in the 21st Century.

The following resources may be useful for more information on what NAFTA has accomplished so far:

Source: U.S. Census Bureau
Credit: Danny DeBelius, Emily Siner / NPR

 

"Reinvent Immigration Strategy": Optimism for Compromise in 2014

On December 18th, NDN and The New Policy Institute President Simon Rosenberg was pleased to join an all-star panel hosted by Reinventors to discuss the prospects and strategy for immigration reform in 2014. 

Simon emphasized the Republican history of working on immigration reform and how both parties are closer to a deal than ever before:

More information and the full roundtable discussion are available here from Reinventors.

The panel concluded that with continued work and compromise from Congress, the President, and activists, a bold immigration reform that strengthens the American economy and brings 11 million people out of the shadows can indeed pass in 2014. For more analysis of immigration reform's prospects in the new year, see our latest: "Immigration Reform in 2014? 6 Reasons Why We're Optimistic."

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