About the CBI

September 2005
 Background Note: Mexico

Flag of Mexico is three equal vertical bands of green on hoist side, white,
and red; the coat of arms - an eagle perched on a cactus with a snake in its
beak - is centered in the white band.

PROFILE

OFFICIAL NAME:
United Mexican States

Geography
Area: 1,972,500 sq. km. (761,600 sq. mi.); about three times the size of
Texas.
Cities: Capital--Mexico City (13 million, 2000 census metro area). Other
major cities--Guadalajara, Monterrey, Puebla, Ciudad Juarez, Tijuana,
Acapulco, Merida, Leon, Veracruz.
Terrain: Coastal lowlands, central high plateaus, and mountains up to 5,400
m. (18,000 ft.).
Climate: Tropical to desert.

People
Nationality: Noun and adjective--Mexican(s).
Population (2004 estimate): 105 million.
Annual growth rate (2004 net): 1.2%.
Ethnic groups: Indian-Spanish (mestizo) 60%, Indian 30%, Caucasian 9%, other
1%.
Religions: Roman Catholic 89%, Protestant 6%, other 5%.
Language: Spanish.
Education: Years compulsory--12 (note: preschool education was made mandatory
in Dec. 2001). Literacy--89.4%.
Health (2004 est.): Infant mortality rate--21.69/1000. Life expectancy--male
72.18 years; female 77.83 years.
Work force (2000, 39.81 million): Agriculture, forestry, hunting,
fishing--21.0%; services--32.2%; commerce--16.9%; manufacturing--18.7%;
construction--5.6%; transportation and communication--4.5%; mining and
quarrying--1.0%.

Government
Type: Federal republic.
Independence: First proclaimed September 16, 1810; republic established 1824.
Constitution: February 5, 1917.
Branches: Executive--president (chief of state and head of government).
Legislative--bicameral. Judicial--Supreme Court, local and federal systems.
Administrative subdivisions: 31 states and a federal district.
Political parties: Institutional Revolutionary Party (PRI), National Action
Party (PAN), Party of the Democratic Revolution (PRD), Green Ecological Party
(PVEM), Labor Party (PT), and several small parties.
Suffrage: Universal at 18.

Economy
Nominal GDP (2003 est.): $615 billion; (2004 second quarter) 7.4 trillion
pesos.
Per capita GDP (2003 est.): $5,945.
Annual real GDP growth: (2003) 1.3%; (2002) 0.9%; (2001) -0.3%; (2000) 6.6%;
(1999) 3.7%.
Avg. real GDP growth (1999-2003): 2.1%.
Inflation rate: (2003) 4.0%; (2002) 5.0%; (2001) 6.4%; (2000) 9.5%; (1999)
16.6%.
Natural resources: Petroleum, silver, copper, gold, lead, zinc, natural gas,
timber.
Agriculture (5.8% of GDP): Products--corn, beans, oilseeds, feed grains,
fruit, cotton, coffee, sugarcane, winter vegetables.
Industry (26.0% of GDP): Types--manufacturing, petroleum, and mining.
Services (68.3% of GDP): Types--commerce and tourism (18%), financial
services (11%), and transportation and communications (10%).
Trade (Goods): Exports (2003)--$164.9 billion. Imports (2003)--$170.5
billion. Exports to U.S. (2003)--$144.5 billion. Imports from U.S. (2003)
--$105.4 billion. Major markets (2003)--U.S. (in 2003 destination for 88% of
Mexico's exports; in 2003 source for 62% of Mexico's imports), EU, Japan,
Canada, China, other significant trade partners.

PEOPLE
Mexico is the most populous Spanish-speaking country in the world and the
second most-populous country in Latin America after Portuguese-speaking
Brazil. About 70% of the people live in urban areas. Many Mexicans emigrate
from rural areas that lack job opportunities--such as the underdeveloped
southern states and the crowded central plateau--to the industrialized urban
centers and the developing areas along the U.S.-Mexico border. According to
some estimates, the population of the area around Mexico City is about 18
million, which would make it the largest concentration of population in the
Western Hemisphere. Cities bordering on the United States--such as Tijuana
and Ciudad Juarez--and cities in the interior--such as Guadalajara,
Monterrey, and Puebla--have undergone sharp rises in population in recent
years.

Education is one of the Government of Mexico's highest priorities. The
education budget has increased significantly in recent years; funding in real
terms for education has increased by almost 25% over the last decade.
Education in Mexico also is being decentralized from federal to state
authority in order to improve accountability. Although educational levels in
Mexico have improved substantially in recent decades, the country still faces
daunting problems.

Education is mandatory from ages 6 through 18. In addition, the Mexican
Congress voted in December of 2001 to make one year of preschool mandatory,
which went into effect in 2004. The increase in school enrollments during the
past two decades has been dramatic. By 1999, 94% of the population between
the ages of 6 and 14 were enrolled in school. Primary, including preschool,
enrollment totaled 17.2 million in 2000. Enrollment at the secondary public
school level rose from 1.4 million in 1972 to 5.4 million in 2000. A rapid
rise also occurred in higher education. Between 1959-2000 college enrollments
rose from 62,000 to more than 2.0 million.

HISTORY
Highly developed cultures, including those of the Olmecs, Mayas, Toltecs, and
Aztecs existed long before the Spanish conquest. Hernando Cortes conquered
Mexico during the period 1519-21 and founded a Spanish colony that lasted
nearly 300 years.

Independence from Spain was proclaimed by Father Miguel Hidalgo on September
16, 1810. Father Hidalgo's declaration of national independence, known in
Mexico as the "Grito de Dolores", launched a decade long struggle for
independence from Spain. Prominent figures in Mexico's war for independence
were Father Jose Maria Morelos; Gen. Augustin de Iturbide, who defeated the
Spaniards and ruled as Mexican emperor from 1822-23; and Gen. Antonio Lopez
de Santa Ana, who went on to control Mexican politics from 1833 to 1855. An
1821 treaty recognized Mexican independence from Spain and called for a
constitutional monarchy. The planned monarchy failed; a republic was
proclaimed in December 1822 and established in 1824.

Throughout the rest of the 19th century, Mexico's government and economy were
shaped by contentious debates among liberals and conservatives, republicans
and monarchists, federalists and those who favored centralized government.
During the two presidential terms of Benito Juarez (1858-71), Mexico
experimented with modern democratic and economic reforms. President Juarez'
terms, and Mexico's early experience with democracy were interrupted by the
Habsburg monarchy's rule of Mexico (1864-67), and by the authoritarian
government of Gen. Porfirio Diaz, who was president during most of the period
between 1877 and 1911.

Mexico's severe social and economic problems erupted in a revolution that
lasted from 1910-20 and gave rise to the 1917 constitution. Prominent leaders
in this period--some of whom were rivals for power--were Francisco I. Madero,
Venustiano Carranza, Pancho Villa, Alvaro Obregon, Victoriano Huerta, and
Emiliano Zapata. The Institutional Revolutionary Party (PRI), formed in 1929
under a different name, emerged as a coalition of interests after the chaos
of the revolution as a vehicle for keeping political competition in peaceful
channels. For 71 years, Mexico's national government was controlled by the
PRI, which won every presidential race and most gubernatorial races until the
July 2000 presidential election of Vicente Fox Quesada of the National Action
Party (PAN).

GOVERNMENT
The 1917 constitution provides for a federal republic with powers separated
into independent executive, legislative, and judicial branches. Historically,
the executive is the dominant branch, with power vested in the president, who
promulgates and executes the laws of the Congress. The Congress has played an
increasingly important role since 1997 when opposition parties first made
major gains. The president also legislates by executive decree in certain
economic and financial fields, using powers delegated from the Congress. The
president is elected by universal adult suffrage for a 6-year term and may
not hold office a second time. There is no vice president; in the event of
the removal or death of the president, a provisional president is elected by
the Congress.

The Congress is composed of a Senate and a Chamber of Deputies. Consecutive
re-election is prohibited. Senators are elected to 6-year terms, and deputies
serve 3-year terms. The Senate's 128 seats are filled by a mixture of
direct-election and proportional representation. In the lower chamber, 300
deputies are directly elected to represent single-member districts, and 200
are selected by a modified form of proportional representation from five
electoral regions. The 200 proportional representation seats were created to
help smaller parties gain access to the Chamber.

The judiciary is divided into federal and state court systems, with federal
courts having jurisdiction over most civil cases and those involving major
felonies. Under the constitution, trial and sentencing must be completed
within 12 months of arrest for crimes that would carry at least a 2-year
sentence. In practice, the judicial system often does not meet this
requirement. Trial is by judge, not jury, in most criminal cases. Defendants
have a right to counsel, and public defenders are available. Other rights
include defense against self-incrimination, the right to confront one's
accusers, and the right to a public trial. Supreme Court justices are
appointed by the president and approved by the Senate.

Principal Government Officials
President--Vicente FOX Quesada
Foreign Secretary--Luis Ernesto DERBEZ Bautista
Ambassador to the U.S.--Carlos DE ICAZA
Ambassador to the United Nations--Enrique BERRUGA Filloy
Ambassador to the OAS--Jorge CHEN Charpentier

Mexico maintains an embassy in the United States at 1911 Pennsylvania Ave.
NW, Washington, DC 20006 (tel. 202-728-1600). Consular offices are located at
2827 - 16th St. NW, 20009 (tel. 202-736-1012), and the trade office is
co-located at the embassy (tel. 202-728-1686).

Besides its embassy, Mexico maintains 48 diplomatic offices in the U.S.
Consulates general are located in Chicago, Dallas, Denver, El Paso, Houston,
Los Angeles, Miami, New Orleans, New York, San Antonio, San Diego, and San
Francisco; consulates are (partial listing) in Atlanta, Boston, Detroit,
Philadelphia, Seattle, St. Louis, and Tucson.

POLITICAL CONDITIONS
On July 2, 2000, Vicente Fox Quesada of the opposition "Alliance for Change"
coalition, headed by the National Action Party (PAN), was elected president,
in what are considered to have been the freest and fairest elections in
Mexico's history. Fox began his 6-year term on December 1, 2000. His victory
ended the Institutional Revolutionary Party's (PRI) 71-year hold on the
presidency.

The introduction of proportional representation has made the bicameral
Mexican Congress a more pluralized institution. Currently, no party holds an
absolute majority in either house. As competition among Mexico's three major
parties in Congress increases, the legislative branch is playing an
increasingly important role in Mexico's democratic transformation.

Recent Elections
The July 2, 2000, elections marked the first time since the 1910-20 Mexican
Revolution that the opposition defeated the party in government. Vicente Fox
won the election with 43% of the vote, followed by PRI candidate Francisco
Labastida with 36%, and Cuauhtemoc Cardenas of the Democratic Revolution
Party (PRD) with 17%. Despite some isolated incidents of irregularities and
problems, there was no evidence of systematic attempts to manipulate the
elections or their results, and critics concluded that the irregularities
that occurred did not alter the outcome of the presidential vote. Civic
organizations fielded more than 80,000 trained electoral observers;
foreigners--many from the United States--were invited to witness the process,
and numerous independent "quick count" operations and exit polls validated
the official vote tabulation.

Numerous electoral reforms implemented since 1989 aided in the opening of the
Mexican political system, and opposition parties have made historic gains in
elections at all levels. Many of the current electoral concerns have shifted
from outright fraud to campaign fairness issues. During 1995-96 the political
parties negotiated constitutional amendments to address these issues.
Implementing legislation included major points of consensus that had been
worked out with the opposition parties. The thrust of the new laws has public
financing predominate over private contributions to political parties,
tightens procedures for auditing the political parties, and strengthens the
authority and independence of electoral institutions. Alongside these more
general, legal reforms, political parties are experimenting with more open
procedures for selecting candidates at all levels of government. The court
system also was given greatly expanded authority to hear civil rights cases
on electoral matters brought by individuals or groups. In short, the
extensive reform efforts have "leveled the playing field" for the parties and
opened new opportunities for citizen participation in politics.

Even before the new electoral law was passed, opposition parties had obtained
an increasing voice in Mexico's political system. A substantial number of
candidates from opposition parties had won election to the Chamber of
Deputies and Senate. As a result of the 2000 and 2003 elections, the Congress
is more diverse than ever. In the Chamber, 223 seats belong to the PRI, 154
to the PAN, 96 to the PRD, 17 to the Green Party, and the remaining seats are
split among smaller parties. In the 128-seat Senate, the upper house of
Congress, the PRI still holds the most seats at 60, but the PAN holds 46, the
PRD 16, the Greens 5, and one senator is an independent. Senators serve 6
years in office and Deputies 3 years; neither can be elected to consecutive
terms.

Although the PRI no longer controls the Presidency, it remains a significant
force in Mexican politics, holding 17 statehouses. In state congressional and
mayoral contests since July 2000, the PRI has fared better than the PAN.

Congressional and presidential elections are scheduled to take place in 2006.
Candidates from all major parties, as well as independent contenders, are
already making their intentions known. Signaling the strength of the
opposition parties going into the 2006 presidential elections, both the PRD
and PRI won important gubernatorial elections in late 2004 and early 2005.
The Mexican Congress has approved absentee voting by mail-in ballot for
citizens residing outside the nation's borders.

Other Reforms
Constitutional and legal changes have been adopted in recent years to improve
the performance and accountability of the Supreme Court and the Office of the
Attorney General and the administration of federal courts. The Supreme Court,
relieved of administrative duties for lower courts, was given
responsibilities for judicial review of certain categories of law and
legislation. Additional judicial reforms presented by President Fox remain
pending before Congress.

Chiapas
An unresolved sociopolitical conflict exists in the southernmost state of
Chiapas. In January 1994, insurgents in the state of Chiapas briefly took
arms against the government, protesting alleged oppression, neglect of the
concerns of Mexico's indigenous peoples, and governmental indifference to
poverty. After 12 days of fighting, a cease-fire was negotiated that remains
in effect. Since 1994 sporadic clashes have continued to occur between armed
civilian groups, usually over disputed land claims.

As a presidential candidate, Fox promised to renew dialogue with the Ejército
Zapatista de Liberación Nacional (EZLN) and address unresolved problems in
the state. Following his inauguration, he ordered many troops out of Chiapas,
dismantled roadblocks, closed military bases, and submitted revised peace
accords to Congress. In August 2001, the peace accords became law, after
having been passed by Congress and ratified by more than half of the state
legislatures. However, the EZLN contended that amendments made to legislated
provisions of the accord diminished their impact, and broke off talks with
the Government.

ECONOMY
Mexico is highly dependent on exports to the U.S., which account for almost a
quarter of the country's GDP. The result is that the Mexican economy is
strongly linked to the U.S. business cycle. As the U.S. economy has emerged
from its downturn in 2001, so has the Mexican economy, growing at a 4.2% rate
in 2004.

Mexican trade policy is among the most open in the world, with Free Trade
Agreements with the U.S., Canada, the EU, and many other countries. Since the
1994 devaluation of the peso Mexican governments have improved the country's
macroeconomic fundamentals. Inflation and public sector deficits are both
under control. As of September 2004, Moody's, Standard & Poors, and Fitch
Ratings had all issued investment-grade ratings for Mexico's sovereign debt.

Trade
Mexico is one of the world's most trade dependent countries, and it is
particularly dependent on trade with the U.S, which buys approximately 88% of
its exports. Top U.S. exports to Mexico include electronic equipment, motor
vehicle parts, and chemicals. Top Mexican exports to the U.S. include
petroleum, cars, and electronic equipment. There is considerable
intra-company trade.

Mexico is an active and constructive participant in World Trade Organization
(WTO) matters, including in the launching of the Doha trade round. Mexico
hosted the WTO Ministerial Meeting in Cancun September 2003. The Mexican
Government and many businesses support a Free Trade Area of the Americas.

Trade disputes between the U.S. and Mexico are generally settled in WTO or
North American Free Trade Agreement (NAFTA) panels or through negotiations
between the two countries. The most significant areas of friction involve
agricultural products including sugar, high fructose corn syrup, apples, and
rice.

Agriculture
Mexico's agrarian reform program began in 1917, when the government began
distribution of land to farmers. Extended further in the 1930s, delivery of
land to peasants continued into the 1960s and 1970s at varying rates. This
cooperative agrarian reform, which guaranteed small farmers a means of
subsistence livelihood, also caused land fragmentation and lack of capital
investment, since commonly held land could not be used as collateral.
Additionally, only 12% of Mexico's land area is arable, of which less than 3%
is irrigated, which coupled with a general lack of economic opportunity in
rural areas, have made it difficult to raise the productivity and living
standards of Mexico's subsistence farmers.

Agriculture accounted for 4% of GDP in 2002, yet agricultural employment
accounted for over 20% of total employment. However, there are signs that
Mexican farmers have already begun to transition away from agriculture to
off-farm employment. The number of land owning farmers dropped 21% between
1991 and 2000 and Mexico's smallest farmers now earn less than a third of
their income from agriculture.

Poor availability of credit continues to plague agriculture. Agricultural
loans were hard hit by the 1994 peso crisis and many private banks view
agricultural lending, particularly to smaller producers, as too risky. Mexico
has recently reformed its public lending system, creating Financiera Rural, a
public bank with the objective of improving the supply of agricultural
credit.

In an effort to raise rural productivity and living standards, Article 27 of
the Mexican Constitution was amended in 1992 to allow for the transfer of
communal land to the farmers cultivating it. They then could rent or sell the
land, opening the way for larger farms and economies of scale. Actual sales
of communal land have been few and limited primarily to suburban areas where
land values are high. One reason for the lack of sales may be insufficient
community support, as some in the community have a vested interest in
maintaining the communal land system.

Mexico subsidizes agricultural production through the PROCAMPO program. Since
the early 1990s, the availability of program payments has shifted from
primarily grains and legumes to all commodities, provided a farmer was
producing during a certain base period. Total program funding is $1.3
billion, and 2004 payments were $85 per hectare for producers with more than
five hectares and $100 per hectare for producers with 1-5 hectares.

Manufacturing and Foreign Investment
Manufacturing accounts for about 20.3% of GDP and grew by 9.4% in 2000.
Manufacturing probably fell or was stagnant in 2001 because exports to the
U.S. probably fell. Construction grew by almost 7% in 2000 but was probably
stagnant in 2001.

According to Mexico's Ministry of Economy, foreign direct investment (FDI) in
Mexico for 2003 was $10.38 billion, down 29% from the year before. The U.S.
was once again the largest foreign investor in Mexico, with $5.75 billion in
investments, or 55% of total FDI. The most recent numbers released by Mexico
show FDI for January thru June 2004 at $9.57 billion. Although the amount was
nearly equal to all of 2003, the total was inflated by an investment of over
$4.0 billion by the Spanish bank BBVA.

Oil and Gas
In 2003 Mexico was the world's fifth-largest oil producer, its ninth-largest
oil exporter, and the third-largest supplier of oil to the United States. Oil
and gas revenues provide about one-third of all Mexican Government revenues.

Mexico's state-owned oil company, Pemex, holds a constitutionally established
monopoly for the exploration, production, transportation, and marketing of
the nation's oil. Since 1995, private investment in natural gas
transportation, distribution, and storage has been permitted, but Pemex
remains in sole control of natural gas exploration and production. Despite
substantial reserves, Mexico is a net natural gas importer.

Transportation and Communications
Mexico's land transportation network is one of the most extensive in Latin
America with 117,000 kilometers (km.) of paved roads, including more than
10,000 kilometers of four-lane paved roads. The 26,622 kilometers (16,268
mi.) of government-owned railroads in Mexico have been privatized through the
sale of 50-year operating concessions.

Mexico's ports have experienced a boom in investment and traffic following a
1993 law that privatized the port system. Mexico's ports moved nearly 1.7
million containers in 2003. A number of international airlines serve Mexico,
with direct or connecting flights from most major cities in the United
States, Canada, Europe, Japan, and Latin America. Most Mexican regional
capitals and resorts have direct air services to Mexico City or the United
States. The Government of Mexico continues to try to privatize the two main
national airlines, Mexicana and Aeromexico, but with little success. Airports
are semi-privatized with the government still the majority shareholder, but
with each regional airport group maintaining operational autonomy.

The telecommunications sector is dominated by Telmex, the former state-owned
monopoly. Several international companies compete in the sector with limited
success. Mexico's telecommunications regulator has failed to enforce dominant
carrier regulations, with regulation largely provided through a series of
private agreements among the three largest carriers. This has negative
implications for U.S. investors in the sector, although there are no reported
barriers to exports of U.S. telecommunications goods and services. The
teledensity rate in Mexico (around 16%) is among the lowest in Latin America.
Cellular penetration is much higher with over 33 million cellular customers
in 2004. However, 31 million of these customers use pre-paid cards, and many
use their phones to receive calls only. Mexico's satellite service sector was
opened to competition, including limited foreign direct investment, in 2001.

NATIONAL SECURITY
Mexico's armed forces number about 225,000. The army makes up about
three-fourths of that total. The navy is a completely autonomous cabinet
agency and as such there is no joint chief of staff position. Principal
military roles include national defense, narcotics control, and civic action
assignments such as search and rescue and disaster relief.

FOREIGN RELATIONS
Traditionally, the Government of Mexico has sought to maintain its interests
abroad and project its influence largely through moral persuasion. In
particular, Mexico champions the principles of nonintervention and
self-determination. In its efforts to revitalize its economy and open up to
international competition, Mexico has sought closer relations with the U.S.,
western Europe, and the Pacific Basin. While the United States and Mexico are
often in agreement on foreign policy issues, some differences remain--in
particular, relations with Cuba. The U.S. and Mexico agree on the ultimate
goal of establishing a democratic, free-market regime in Cuba but disagree on
tactics to reach that goal. President Fox has more actively promoted
international human rights and democracy and sought to increase Mexico's
participation in international affairs.

Mexico actively participates in several international organizations; it was
elected to a seat on the UN Security Council for the period 2002-03. It is a
supporter of the United Nations and Organization of American States systems
and also pursues its interests through a number of ad hoc international
bodies. Mexico has been selective in its membership in other international
organizations. It declined, for example, to become a member of Organization
of Petroleum Exporting Countries. Nevertheless, Mexico does seek to diversify
its diplomatic and economic relations, as demonstrated by its accession to
the General Agreement on Tariffs and Trade (GATT) in 1986; its joining the
Asia-Pacific Economic Cooperation forum (APEC) in 1993; becoming, in April
1994, the first Latin American member of the Organization for Economic
Cooperation and Development (OECD); and a founding member of the World Trade
Organization in 1996. Mexico attended the 1994 Summit of the Americas, held
in Miami; managed coordination of the agenda item on education for the 1998
Summit of the Americas in Santiago, Chile; and hosted a Special Summit of the
Americas in early 2004. Mexico hosted a WTO Ministerial in September 2003 and
a Hemispheric Security Conference in October of the same year. It was elected
to the International Atomic Energy Agency Board of Governors in 2003. In 2003
it hosted APEC in Cabo San Lucas.

U.S.-MEXICAN RELATIONS
U.S. relations with Mexico are as important and complex as with any country
in the world. A stable, democratic, and economically prosperous Mexico is
fundamental to U.S. interests. U.S. relations with Mexico have a direct
impact on the lives and livelihoods of millions of Americans--whether the
issue is trade and economic reform, homeland security, drug control,
migration, or the promotion of democracy. The U.S. and Mexico are partners in
NAFTA, and enjoy a rapidly developing trade relationship.

The scope of U.S.-Mexican relations goes far beyond diplomatic and official
contacts; it entails extensive commercial, cultural, and educational ties, as
demonstrated by the annual figure of nearly a million legal border crossings
a day. In addition, more than a half-million American citizens live in
Mexico. More than 2,600 U.S. companies have operations there, and the U.S.
accounts for 55% of all foreign direct investment in Mexico. Along the
2,000-mile shared border, state and local governments interact closely.

There is frequent contact at the highest levels. The Presidents' meetings
have included the Asia-Pacific Economic Cooperation Summit in Bangkok in
October 2003; President Bush's visits to Monterrey in January 2004 (Summit of
the Americas) and March 2002; his April 2001 visit to Guanajuato; President
Fox's state visit to the U.S. in September 2001, and his meeting with the
President at Crawford, Texas in March 2004. The two Presidents met again in
Crawford in March 2005, along with Canadian Prime Minister Martin, to launch
the Security and Prosperity Partnership for North America, a trilateral
initiative to encourage even greater commercial activity while enhancing
security for the region.

Since 1981, the management of the broad array of U.S.-Mexico issues has been
formalized in the U.S.-Mexico Binational Commission, composed of numerous
U.S. cabinet members and their Mexican counterparts. The commission holds
annual plenary meetings, and many subgroups meet during the course of the
year to discuss border security and counter terrorism, trade and investment
opportunities, financial cooperation, consular issues and migration, legal
affairs and anti-narcotics cooperation, education, energy, border affairs,
environment and natural resources, labor, agriculture, health, housing and
urban development, transportation, and science and technology.

A strong partnership with Mexico is critical to combating terrorism and
controlling the flow of illicit drugs into the United States. In recent
years, cooperation on counter-narcotics and Mexico's own initiatives in
fighting drug trafficking have been unprecedented. The U.S. will continue
working with Mexico to help ensure that Mexico's cooperation and anti-drug
efforts grow even stronger. The U.S. and Mexico continue to cooperate on
narcotics interdiction, demand reduction, and eradication.

Border and Environmental Affairs
Cooperation between the United States and Mexico along the 2,000-mile common
border includes state and local problem-solving mechanisms; transportation
planning; and institutions to address resource, environment, and health
issues. In 1993, the Border Liaison Mechanism (BLM) was established. Chaired
by U.S. and Mexican consuls, the BLMs operate in "sister city" pairs and have
proven to be effective means of dealing with a variety of local issues
ranging from accidental violation of sovereignty by law enforcement officials
and charges of mistreatment of foreign nationals to coordination of port
security and cooperation in public health matters such as tuberculosis.

As the number of people and the volume of cargo crossing the U.S.-Mexico
border grow, so, too, does the need for coordinated infrastructure
development. The multi-agency U.S.-Mexico Binational Group on Bridges and
Border Crossings meets twice yearly to improve the efficiency of existing
crossings and coordinate planning for new ones. The 10 U.S. and Mexican
border states have become active participants in these meetings.

The United States and Mexico have a history of cooperation on environmental
and natural resource issues, particularly in the border area, where there are
serious environmental problems caused by rapid population growth,
urbanization, and industrialization. Cooperative activities between the U.S.
and Mexico take place under a number of agreements such as:

* An 1889 convention establishing the International Boundary Commission,
reconstituted by the Water Treaty of 1944 as the International Boundary
and Water Commission, United States and Mexico (IBWC). The IBWC has
settled many difficult U.S.-Mexico boundary and water problems, including
the regularization of the Rio Grande near El Paso through the 1967
Chamizal settlement. The IBWC divides the use of international waters,
builds and operates water conservation and flood control projects, and
constructs and maintains boundary markers on the land boundary and on
international bridges. In recent years, the IBWC has worked to resolve
longstanding border sanitation problems, to monitor the quantity and
quality of border waters, and to address water delivery and sedimentation
problems of the Colorado River. Current issues include Mexico's water
debt to the U.S. on the Rio Grande, ecology of the Colorado River Delta,
shared wastewater treatment facilities in San Diego/Tijuana, and the
impact on Mexican groundwater sources which may be caused by the lining
of the All-American Canal.
* A series of agreements on border health (since 1942), wildlife and
migratory birds (since 1936), national parks, forests, marine and
atmospheric resources. In July of 2000, the U.S. and Mexico signed an
agreement to establish a binational Border Health Commission. The Border
Health Commission held its inaugural meeting in November 2000.
* The 1983 La Paz Agreement to protect and improve the border environment
and Border XXI, a binational, interagency planning program, begun in
1996, to address environmental, natural resource, and environmental
health concerns in the border area. The U.S. and Mexico have initiated
discussion to develop a new border environmental program that will build
on the progress of Border XXI while enhancing decentralization and
stakeholders' involvement.
* The 1993 North American Agreement on Environmental Cooperation (NAAEC),
creating the North American Commission on Environmental Cooperation under
NAFTA by the U.S., Mexico, and Canada, to improve enforcement of
environmental laws and to address common environmental concerns.
* A November 1993 agreement between the U.S. and Mexico, also related to
NAFTA, establishing the Border Environment Cooperation Commission (BECC)
which works with local communities to develop and certify environmental
infrastructure projects such as wastewater treatment plants, drinking
water systems, and solid waste disposal facilities. The sister
organization, the North American Development Bank (NADBank), uses capital
and grant funds contributed by partner governments to help finance border
environmental infrastructure projects certified by the BECC. The U.S. and
Mexico are in the process of combining the Board of Directors from both
the BECC and the NADBank into a single institution. The resulting single
board will streamline the project certification cycle and provide an
increase in environmental infrastructure.

Principal U.S. Embassy Officials
Ambassador--Antonio O. Garza, Jr.
Deputy Chief of Mission--Stephen R. Kelly
Minister Counselor for Political Affairs--Leslie Bassett
Minister Counselor for Economic Affairs--James Heg
Minister Counselor for Public Diplomacy--James Dickmeyer
Minister Counselor for Consular Affairs--David Donahue
Minister Counselor for Commercial Affairs--Karen Zens
Minister Counselor for Management Affairs--James E. Robertson
Minister Counselor for Agricultural Affairs--Suzanne Heinen
Consul General--vacant
Counselor for Labor Affairs--vacant
Counselor for Scientific and Technological Affairs--Dana M. Weant

The U.S. Embassy in Mexico is located at Paseo de la Reforma 305, 06500
Mexico, DF. U.S. mailing address: Box 3087, Laredo, Texas 78044-3087; tel.
(from the U.S.): (011) (52) 555-080-2000; Internet: http://
mexico.usembassy.gov/

The embassy and the 22 other U.S. Consulates General, Consulates, and
consular agents provide a range of services to American students, tourists,
business people, and residents throughout Mexico.

U.S. Consulates General, Consulates, and Officials
Consulate General, Ciudad Juarez--Donna Blair
Address: Avenida Lopez Mateos 924-N, 32000 Ciudad Juarez, Chihuahua
U.S. Postal Address: Box 10545, El Paso, Texas 79995-0545
Tel. (from the U.S.): (011)(52) 656-611-3000

Consulate General, Guadalajara--Sandra Salmon
Address: Progreso 175, 44100, Guadalajara, Jalisco
U.S. Postal Address: Box 9001, Brownsville, Texas 78520-0901
Tel.: (011)(52) 333-268-2100

Consulate General, Monterrey--Luis Moreno
Address: Avenida Constitution 411 Poniente, 64000 Monterrey, Nuevo Leon
U.S. Postal Address: Box 9002, Brownsville, Texas 78520-0902
Tel.: (011)(52) 818-345-2120

Consulate General, Tijuana--David Stewart
Address: Tapachula 96, 22420 Tijuana, Baja California Norte
U.S. Postal Address: P.O. Box 439039, San Diego, California 92143-9039
Tel.: (011)(52) 664-681-7400

Consulate, Hermosillo--Marvin Brown
Address: Calle Monterrey 141 Pte., 83260, Hermosillo, Sonora
U.S. Postal Address: Box 1689, Nogales, Arizona 85628
Tel.: (011)(52) 662-2893500

Consulate, Matamoros--John Naland
Address: Ave. Primera 2002, 87330, Matamoros, Tamaulipas
U.S. Postal Address: Box 633, Brownsville, Texas 78522-0633
Tel.: (011)(52) 868-812-4402

Consulate, Merida--Lisa Vickers
Address: Paseo Montejo 453, 97000, Merida, Yucatan
U.S. Postal Address: Box 9003, Brownsville, Texas 78520-0903
Tel.: (011)(52) 999-925-5011

Consulate, Nogales--Cynthia Sharpe
Address: Calle San Jose s/n, 84065, Nogales, Sonora
U.S. Postal Address: P.O. Box 1729, Nogales, AZ 85628-1729
Tel.: (011)(52) 631-313-4820

Consulate, Nuevo Laredo--Michael Yoder
Address: Calle Allende 3330, Col. Jardin, 88260 Nuevo Laredo, Tamaulipas
U.S. Postal Address: Box 3089, Laredo, Texas 78044-3089
Tel.: (011)(52) 867-714-0512

Consular Agents
Acapulco--Alexander Richards
Address: Hotel Acapulco Continental, Costera M. Aleman 121-Local 14,
39670 Acapulco, Guerrero
Tel. (from the U.S.): (011)(52) 744-469-0556

Cabo San Lucas--Michael John Houston
Address: Blvd. Marina, Local C-4, Plaza Nautica, Zona Centro,
23410 Cabo San Lucas, Baja California Sur
Tel.: (011)(52) 624-143-3566

Cancun--Lynette Belt
Address: Plaza Caracol 2, #320-323, Blvd. Kukulkan, Km. 8.5 Zona Hotelera,
77500 Cancun, Quintana Roo
Tel.: (011)(52) 998-883-0272

Ciudad Acuna--vacant
Morelos y Ocampo #305, Col. Centro
26200 Ciudad Acuna, Coahuila
Tel. (011)(52) 877-772-8661

Cozumel--Anne Harris
Address: Plaza Villa Mar en El Centro, Plaza Principal, Parque Juarez
(entre Melgar y 5a Av.), Piso 2, 77622 Cozumel, Quintana Roo
Tel.: (011)(52) 987-872-4574

Ixtapa/Zihuatanejo--Elizabeth Williams
Address: Hotel Fontan, Blvd. Ixtapa, Ixtapa, Zihuantanejo, Gro. 40880, Mexico
Courier Address: Paseo de los Hujes 236, Col. El Hujal,
40880 Zihuatanejo, Guerrero
Tel.: (011)(52) 755-553-1108

Mazatlan--Patti Fletcher
Address: Hotel Playa Mazatlan, Rodolfo T. Loaiza 202, Zona Dorada,
82110 Mazatlan, Sinaloa
Tel.: (011)(52) 669-916-5889

Oaxaca--Mark A. Leyes
Address: Macedonia Alcala 407, Int. 20,
68000 Oaxaca, Oaxaca
Tel.: (011)(52) 951-514-3054

Piedras Negras--Dina O'Brien
Address: Prol. General Cepeda No. 1900, Franccionamiento Privada Blanca,
Piedras Negras, Coahiula, C.P. 26700
Tel. (011)(52)795-1986

Puerto Vallarta--Kelly Trainor
Address: Zaragoza 160, Edificio Vallarta Plaza, Piso 2, Int. 18,
48300 Puerto Vallarta, Jalisco
Tel.: (011)(52) 322-222-0069

Reynosa--Roberto Rodriguez
Calle Monterrey #390 esq. Sinaloa, Col. Rodriguez
88630 Reynosa, Tamaulipas
Tel. (011)(52)899-893-9331

San Luis Potosi--Carolyn Lazaro
Address: Edificio "Las Terrazas," Av. Venustiano Carranza 2076-41, Col.
Polanco,
78220 San Luis Potosi, San Luis Potosi
Tel.: (011)(52) 444-811-7802

San Miguel de Allende--Philip Maher
Address: Dr. Hernandez Macias 72
37700 San Miguel de Allende, Guanajuato
Tel.: (011)(52) 415-152-2357

Other Contact Information
American Chamber of Commerce of Mexico
A.C. Lucerna 78-4 06600 Mexico
D.F. Mexico
Tel: (011)(52) 555-724-3800
Fax: 555-703-3908
E-Mail: amchamm@amcham.com.mx
(Branch offices also in Guadalajara and Monterrey)

U.S. Department of Commerce
International Trade Administration
Office of Latin America and the Caribbean
14th and Constitution, NW
Washington, DC 20230
Tel: 202-482-0305; 202-USA-TRADE
Fax: 202-482-0464
Internet: http://www.ita.doc.gov