U.S. Foreign Policy Regarding Economic Development in Mexico

This article discusses the U.S. foreign policies for economic development in Mexico, covering trade, education, security, and migration. It explores the impact of NAFTA and FDI on the bilateral relationship between the two countries.

Running head: INTRODUCTION TO GOVERNMENT
U.S. Foreign Policy Regarding Economic Development in Mexico
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Introduction
U.S. and Mexico share a strong economic as well as trade relationship. It is a very
important relationship for the U.S. policymakers due to close proximity of Mexico to the USA,
very high level of bilateral trade and strong economic and cultural ties between the two
countries. At the same time, the U.S. also wants a democratic and prosperous country to be its
neighbor. Currently, the USA is the biggest trading partner of Mexico while Mexico is third
biggest trading partner of USA. After China and Canada, Mexico holds the third place for the
largest source of imports to the USA and it is the second biggest market for exports of USA,
following Canada. Mexico receives the largest amount of FDI from the U.S. (Villarreal).
U.S. foreign policies for development in Mexico
The bilateral relationship between the two countries has a significant impact on the
people, who live near the 2000 miles long border. However, the Mexicans are the poorer section,
who needs help from the U.S. government. The issues regarding trade and economic reform,
exchange of education, drug control, security of the citizens, entrepreneurship, innovation and
migration, which are the area of major concerns of both the countries (cfr.org).
The USA has quite stronger foreign policies for the development of Mexico.
Development of a country entails improvement in the overall social, economic and cultural
condition of the country. The relationship between the two countries goes beyond the official and
diplomatic relationship and includes extensive cultural, commercial and educational relations.
There is approximately two way trade of 1.4 billion USD. Tourism also brings a huge amount of
revenue for both the countries (Villarreal).

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U.S. has designed various polices that would benefit both the countries. Former Vice
President Joe Biden and his Mexican counterparts have established High Level Economic
Dialogue or HLED to strengthen and elevate the bilateral relationship further. The objective of
this initiative is to promote the opportunities for mutual growth of the society and economy
through increased competitiveness and job creation. The Mexican President has brought about
many positive economic and political changes to the country and the U.S. policies have been
helpful for him. FDI is an integral part of the economic and trade relationship between the two
countries. Since, Mexico opened its door for foreign investment; the U.S. entrepreneurs have
invested a huge amount of money in mining and agriculture of Mexico. After the implementation
of NAFTA, U.S. has become the biggest source of FDI to Mexico, mounting to $92.8 billion in
2015 (Cooper). Some part of the remittances from the U.S. sent by the migrant workers are used
for the development of the community through infrastructural development under the ‘3 for 1’
program, in collaboration with federal, state and local government (Richmond and Richmond).
NAFTA (North American Free Trade Agreement) has been a major step among the three
countries, USA, Canada and Mexico, to establish the second biggest trading block, after the
European Union. This agreement aimed to eliminate the trade barriers and tariffs on the trade
among the three countries. Mexico has benefitted from NAFTA in a large way. Apart from that,
Villarreal points out that, for the development of the border region, U.S. has initiated some
programs, such as, U.S.-Mexico Border 2012/2020 Program, Border Environment Cooperation
Commission, North American Development Bank, Border Health Commission etc. (Weissman).
In 2013, the former U.S. President announced a forum for educational exchange, known as the
U.S.-Mexico Bilateral Forum on Higher Education, Innovation and Research for the
development of educational opportunities, partnerships for scientific research, cross border

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innovations and promoting sustainable social development. To fight the criminal activities
between the countries, U.S. has entered into Merida Initiative (Krannich). This has improved the
security between the countries. However, migration is one of the biggest issues between U.S. and
Mexico. The USA has become proactive, under the Trump presidency, to make policies to
reduce the illegal migration from Mexico, which, if effective, would bring a hard blow to the
Mexican economy (state.gov).
Conclusion
The relationship between the USA and Mexico goes back a long way. While USA is one
of the most developed countries in the world, Mexico is still struggling with a developing
economy. To improve the economic and social condition of the neighboring country, U.S. has
been taking many initiatives over the years that span over the economic, social and cultural
aspects. The FDI from U.S. to Mexico has been a major aid for the development in Mexico.
After the liberalization process started in Mexico, U.S. contributed a huge amount of money in
infrastructure, agriculture, supply chains, manufacturing, telecommunications, health facilities,
education, etc. and trade relationship improved. Along with this, the NAFTA has contributed in
Mexico’s development also.

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References
cfr.org. "U.S.-Mexico Relations." Council On Foreign Relations, 2017,
https://www.cfr.org/timeline/us-mexico-relations.
Cooper, William H. "Free trade agreements: Impact on US trade and implications for US trade
policy." Current Politics and Economics of the United States, Canada and Mexico16.3 (2014):
425.
Krannich, Sascha. "Migration and Institutional Change: The Cases of Southern Mexican States
and Their Emigrant Communities in the United States of America." ["MIGRACIJA I
INSTITUCIONALNA PROMJENA: SLUČAJEVI JUŽNIH MEKSIČKIH SAVEZNIH
DRŽAVA I NJIHOVIH ISELJENIČKIH ZAJEDNICA U SJEDINJENIM AMERIČKIM
DRŽAVAMA"]. Pravni Vjesnik, vol. 32, no. 1, Jan. 2016, pp. 155-170. ·
Richmond, Kristen L. and Rodney G. Richmond. "Corridos, Drugs, and Violence: An Analysis
of Mexican Drug Ballads." Journal of Alternative Perspectives in the Social Sciences, vol. 6, no.
2, Nov. 2014, pp. 156-218
state.gov. "U.S. Relations With Mexico." U.S. Department Of State, 2017,
https://www.state.gov/r/pa/ei/bgn/35749.htm.
Villarreal, M. A. U.S.-Mexico Economic Relations: Trends, Issues, And Implications.
Congressional Research Service, 2017, https://fas.org/sgp/crs/row/RL32934.pdf.
Weissman, Deborah M. "Remaking Mexico: Law Reform as Foreign Policy." Cardozo Law
Review, vol. 35, no. 4, Apr. 2014, pp. 1471-1523. ·

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