{ "id": "RL32934", "type": "CRS Report", "typeId": "RL", "number": "RL32934", "active": true, "source": "CRSReports.Congress.gov, EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source_dir": "crsreports.congress.gov", "title": "U.S.-Mexico Economic Relations: Trends, Issues, and Implications ", "retrieved": "2020-09-07T12:22:36.482709", "id": "RL32934_52_2020-06-25", "formats": [ { "filename": "files/2020-06-25_RL32934_b73ee1d603f8aa049a489a5c02520b5fadb1a336.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/RL/RL32934/52", "sha1": "b73ee1d603f8aa049a489a5c02520b5fadb1a336" }, { "format": "HTML", "filename": "files/2020-06-25_RL32934_b73ee1d603f8aa049a489a5c02520b5fadb1a336.html" } ], "date": "2020-06-25", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "RL", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=RL32934", "type": "CRS Report" }, { "source": "EveryCRSReport.com", "id": 595024, "date": "2019-03-26", "retrieved": "2019-12-20T19:40:23.595825", "title": "U.S.-Mexico Economic Relations: Trends, Issues, and Implications ", "summary": "The economic and trade relationship with Mexico is of interest to U.S. policymakers because of Mexico\u2019s proximity to the United States, the extensive trade and investment relationship under the North American Free Trade Agreement (NAFTA), the conclusion of the NAFTA renegotiations and the proposed U.S.-Mexico-Canada Agreement (USMCA), and the strong cultural and economic ties that connect the two countries. Also, it is of national interest for the United States to have a prosperous and democratic Mexico as a neighboring country. Mexico is the United States\u2019 third-largest trading partner, while the United States is, by far, Mexico\u2019s largest trading partner. Mexico ranks third as a source of U.S. imports, after China and Canada, and second, after Canada, as an export market for U.S. goods and services. The United States is the largest source of foreign direct investment (FDI) in Mexico. \nMost studies show that the net economic effects of NAFTA, which entered into force in 1994, on both the United States and Mexico have been small but positive, though there have been adjustment costs to some sectors within both countries. Much of the bilateral trade between the United States and Mexico occurs in the context of supply chains as manufacturers in each country work together to create goods. The expansion of trade since NAFTA has resulted in the creation of vertical supply relationships, especially along the U.S.-Mexico border. The flow of intermediate inputs produced in the United States and exported to Mexico and the return flow of finished products greatly increased the importance of the U.S.-Mexico border region as a production site. U.S. manufacturing industries, including automotive, electronics, appliances, and machinery, all rely on the assistance of Mexican manufacturers.\nCongress faces numerous issues related to U.S.-Mexico trade and investment relations. The United States, Mexico, and Canada signed the proposed USMCA on November 30, 2018, which would have to be approved by Congress and ratified by Mexico and Canada before entering into force. A few days after signing the agreement, President Donald J. Trump stated to reporters that he intends to notify Mexico and Canada of his intention to withdraw from NAFTA with a six-month notice. Congress may consider policy issues and economic effects of the proposed USMCA, economic and political ramifications of possibly withdrawing from NAFTA, and the potential strategic implications of Mexico\u2019s new President Andr\u00e9s Manuel L\u00f3pez Obrador, who entered into office on December 1, 2018. Congress may also examine the congressional role in a possible withdrawal from NAFTA; evaluate the effects of U.S. tariffs on aluminum and steel imports from Mexico and Mexico\u2019s retaliatory tariffs on certain U.S. exports; and address issues related to the U.S. withdrawal from the proposed Trans-Pacific Partnership (TPP) free trade agreement among the United States, Canada, Mexico, and nine other countries, and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), which will enact much of the proposed TPP without the participation of the United States. The CPTPP is set to take effect for Mexico and five other countries on December 30, 2018. Some observers contend that the withdrawal from TPP could damage U.S. competitiveness and economic leadership in the region, while others see the withdrawal as a way to prevent lower-cost imports and potential job losses. \nCongress also may maintain an active interest in ongoing bilateral efforts to promote economic competitiveness, increase regulatory cooperation, and pursue energy integration. Under the U.S.-Mexico High Level Economic Dialogue (HLED), which was first launched in September 2013, the United States and Mexico are striving to advance economic and commercial priorities through annual meetings at the Cabinet level that also include leaders from the public and private sectors. Two other initiatives that may be of interest to policymakers are the High-Level Regulatory Cooperation Council (HLRCC) and the bilateral border management initiative under the Declaration Concerning 21st Center Border Management.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/RL32934", "sha1": "ae9d1fe0337994cf5302716795aca3b88ad19e5d", "filename": "files/20190326_RL32934_ae9d1fe0337994cf5302716795aca3b88ad19e5d.html", "images": { "/products/Getimages/?directory=RL/html/RL32934_files&id=/4.png": "files/20190326_RL32934_images_de141473348ff68c3a7ce93fa56a05d430239c11.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/1.png": "files/20190326_RL32934_images_0743d784e87264b72df65876fda69927cc3bfe6f.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/0.png": "files/20190326_RL32934_images_9c54d45f26a8f24d44e3c118daad2f637ee9faab.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/2.png": "files/20190326_RL32934_images_b8bd68a4518dc61a8d984b49525e0c67c3b8f506.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/3.png": "files/20190326_RL32934_images_e646a708bf5e5aca2724e9f4a396dc37dbc688d0.png" } }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/RL32934", "sha1": "ab4bb0b60440868785db0c0c91dd70dc2c5b3f91", "filename": "files/20190326_RL32934_ab4bb0b60440868785db0c0c91dd70dc2c5b3f91.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4847, "name": "Latin America, Caribbean, & Canada" }, { "source": "IBCList", "id": 4938, "name": "Major Economies & U.S. Trade Relations" } ] }, { "source_dir": "crsreports.congress.gov", "title": "U.S.-Mexico Economic Relations: Trends, Issues, and Implications ", "retrieved": "2020-09-07T12:22:36.481858", "id": "RL32934_49_2019-03-25", "formats": [ { "filename": "files/2019-03-25_RL32934_705ec7c40eaad88d3f71e1a3a9bd0bcf2916c022.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/RL/RL32934/49", "sha1": "705ec7c40eaad88d3f71e1a3a9bd0bcf2916c022" }, { "format": "HTML", "filename": "files/2019-03-25_RL32934_705ec7c40eaad88d3f71e1a3a9bd0bcf2916c022.html" } ], "date": "2019-03-25", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "RL", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=RL32934", "type": "CRS Report" }, { "source": "EveryCRSReport.com", "id": 588479, "date": "2018-12-06", "retrieved": "2018-12-11T14:18:03.556389", "title": "U.S.-Mexico Economic Relations: Trends, Issues, and Implications ", "summary": "The economic and trade relationship with Mexico is of interest to U.S. policymakers because of Mexico\u2019s proximity to the United States, the extensive trade and investment relationship under the North American Free Trade Agreement (NAFTA), the conclusion of the NAFTA renegotiations and the proposed U.S.-Mexico-Canada Agreement (USMCA), and the strong cultural and economic ties that connect the two countries. Also, it is of national interest for the United States to have a prosperous and democratic Mexico as a neighboring country. Mexico is the United States\u2019 third-largest trading partner, while the United States is, by far, Mexico\u2019s largest trading partner. Mexico ranks third as a source of U.S. imports, after China and Canada, and second, after Canada, as an export market for U.S. goods and services. The United States is the largest source of foreign direct investment (FDI) in Mexico. \nMost studies show that the net economic effects of NAFTA, which entered into force in 1994, on both the United States and Mexico have been small but positive, though there have been adjustment costs to some sectors within both countries. Much of the bilateral trade between the United States and Mexico occurs in the context of supply chains as manufacturers in each country work together to create goods. The expansion of trade since NAFTA has resulted in the creation of vertical supply relationships, especially along the U.S.-Mexico border. The flow of intermediate inputs produced in the United States and exported to Mexico and the return flow of finished products greatly increased the importance of the U.S.-Mexico border region as a production site. U.S. manufacturing industries, including automotive, electronics, appliances, and machinery, all rely on the assistance of Mexican manufacturers.\nCongress faces numerous issues related to U.S.-Mexico trade and investment relations. The United States, Mexico, and Canada signed the proposed USMCA on November 30, 2018, which would have to be approved by Congress and ratified by Mexico and Canada before entering into force. A few days after signing the agreement, President Donald J. Trump stated to reporters that he intends to notify Mexico and Canada of his intention to withdraw from NAFTA with a six-month notice. Congress may consider policy issues and economic effects of the proposed USMCA, economic and political ramifications of possibly withdrawing from NAFTA, and the potential strategic implications of Mexico\u2019s new President Andr\u00e9s Manuel L\u00f3pez Obrador, who entered into office on December 1, 2018. Congress may also examine the congressional role in a possible withdrawal from NAFTA; evaluate the effects of U.S. tariffs on aluminum and steel imports from Mexico and Mexico\u2019s retaliatory tariffs on certain U.S. exports; and address issues related to the U.S. withdrawal from the proposed Trans-Pacific Partnership (TPP) free trade agreement among the United States, Canada, Mexico, and nine other countries, and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), which will enact much of the proposed TPP without the participation of the United States. The CPTPP is set to take effect for Mexico and five other countries on December 30, 2018. Some observers contend that the withdrawal from TPP could damage U.S. competitiveness and economic leadership in the region, while others see the withdrawal as a way to prevent lower-cost imports and potential job losses. \nCongress also may maintain an active interest in ongoing bilateral efforts to promote economic competitiveness, increase regulatory cooperation, and pursue energy integration. Under the U.S.-Mexico High Level Economic Dialogue (HLED), which was first launched in September 2013, the United States and Mexico are striving to advance economic and commercial priorities through annual meetings at the Cabinet level that also include leaders from the public and private sectors. Two other initiatives that may be of interest to policymakers are the High-Level Regulatory Cooperation Council (HLRCC) and the bilateral border management initiative under the Declaration Concerning 21st Center Border Management.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL32934", "sha1": "14766588fb4bab36ef1c4d18fd8d8e0a38293ad5", "filename": "files/20181206_RL32934_14766588fb4bab36ef1c4d18fd8d8e0a38293ad5.html", "images": { "/products/Getimages/?directory=RL/html/RL32934_files&id=/4.png": "files/20181206_RL32934_images_e646a708bf5e5aca2724e9f4a396dc37dbc688d0.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/5.png": "files/20181206_RL32934_images_de141473348ff68c3a7ce93fa56a05d430239c11.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/2.png": "files/20181206_RL32934_images_0743d784e87264b72df65876fda69927cc3bfe6f.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/3.png": "files/20181206_RL32934_images_b8bd68a4518dc61a8d984b49525e0c67c3b8f506.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/1.png": "files/20181206_RL32934_images_53fb31f087fbae9cf4b25ffcb2e9d0c40544e2fc.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/0.png": "files/20181206_RL32934_images_e9f050ec03e096164034dee5b84c96d059d9c847.png" } }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL32934", "sha1": "48c8185925caff74f542c3d28efe2b39717ae4af", "filename": "files/20181206_RL32934_48c8185925caff74f542c3d28efe2b39717ae4af.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4847, "name": "Latin America, Caribbean, & Canada" }, { "source": "IBCList", "id": 4938, "name": "Major Economies & U.S. Trade Relations" } ] }, { "source": "EveryCRSReport.com", "id": 579680, "date": "2018-03-27", "retrieved": "2018-04-03T13:31:14.747150", "title": "U.S.-Mexico Economic Relations: Trends, Issues, and Implications ", "summary": "The economic and trade relationship with Mexico is of interest to U.S. policymakers because of Mexico\u2019s proximity to the United States, the extensive trade and investment relationship under the North American Free Trade Agreement (NAFTA), and the strong cultural and economic ties that connect the two countries. Also, it is of national interest for the United States to have a prosperous and democratic Mexico as a neighboring country. Mexico is the United States\u2019 third-largest trading partner, while the United States is, by far, Mexico\u2019s largest trading partner. Mexico ranks third as a source of U.S. imports, after China and Canada, and second, after Canada, as an export market for U.S. goods and services. The United States is the largest source of foreign direct investment (FDI) in Mexico. \nNAFTA has been in effect since 1994. Most studies show that the net economic effects of NAFTA on both countries have been small but positive, though there have been adjustment costs to some sectors within both countries. Much of the bilateral trade between the United States and Mexico occurs in the context of supply chains as manufacturers in each country work together to create goods. The expansion of trade has resulted in the creation of vertical supply relationships, especially along the U.S.-Mexico border. The flow of intermediate inputs produced in the United States and exported to Mexico and the return flow of finished products greatly increased the importance of the U.S.-Mexico border region as a production site. U.S. manufacturing industries, including automotive, electronics, appliances, and machinery, all rely on the assistance of Mexican manufacturers.\nThe 115th Congress faces numerous issues related to U.S.-Mexico trade and investment relations. The Administration of Donald J. Trump is in the process of renegotiating NAFTA, and President Trump has repeatedly stated that he may decide to withdraw from the agreement. Congress may wish to consider policy issues regarding the renegotiation, the ramifications of possibly withdrawing from NAFTA, how it may affect the U.S. economy, and the strategic implications of the upcoming presidential elections in Mexico. It may also wish to examine the congressional role in the renegotiation, as well as the negotiating positions of Mexico and Canada. Mexico has stated that if negotiations are not favorable to the country, it may seek to broaden negotiations to include security, counternarcotics, and transmigration issues, or it also may choose to withdraw from the agreement. Congress may also wish to address issues related to the U.S. withdrawal from the proposed Trans-Pacific Partnership (TPP) free trade agreement among the United States, Canada, Mexico, and nine other countries. Some observers contend that the withdrawal from TPP could damage U.S. competitiveness and economic leadership in the region, while others see the withdrawal as a way to prevent lower-cost imports and potential job losses. \nCongress also may maintain an active interest in ongoing bilateral efforts to promote economic competitiveness, increase regulatory cooperation, and pursue energy integration. Under the U.S.-Mexico High Level Economic Dialogue (HLED), which was first launched in September 2013, the United States and Mexico are striving to advance economic and commercial priorities through annual meetings at the Cabinet level that also include leaders from the public and private sectors. Another bilateral initiative that may be of interest to policymakers is the High-Level Regulatory Cooperation Council (HLRCC), which is intended to help align regulatory principles. In addition, the two countries have a bilateral border management initiative under the Declaration Concerning 21st Center Border Management.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL32934", "sha1": "b3ad467fdc9e373af1816884ab8eca0f7120e730", "filename": "files/20180327_RL32934_b3ad467fdc9e373af1816884ab8eca0f7120e730.html", "images": { "/products/Getimages/?directory=RL/html/RL32934_files&id=/4.png": "files/20180327_RL32934_images_de141473348ff68c3a7ce93fa56a05d430239c11.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/1.png": "files/20180327_RL32934_images_6aff097082ac91bc74cef23e090fb4fe210f9c73.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/0.png": "files/20180327_RL32934_images_2fbf4be09de807a76b75285a1f41dc0f56f1a27d.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/2.png": "files/20180327_RL32934_images_b8bd68a4518dc61a8d984b49525e0c67c3b8f506.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/3.png": "files/20180327_RL32934_images_22794ce9254bfc8f7f3158c8bcd303787b158f4b.png" } }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL32934", "sha1": "0bcaff4348b95c4b097e9d4146176d8d04496d08", "filename": "files/20180327_RL32934_0bcaff4348b95c4b097e9d4146176d8d04496d08.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4847, "name": "Latin America, Caribbean, & Canada" }, { "source": "IBCList", "id": 4938, "name": "Major Economies & U.S. Trade Relations" } ] }, { "source": "EveryCRSReport.com", "id": 460734, "date": "2017-04-27", "retrieved": "2017-08-22T14:58:39.674822", "title": "U.S.-Mexico Economic Relations: Trends, Issues, and Implications ", "summary": "The economic and trade relationship with Mexico is of interest to U.S. policymakers because of Mexico\u2019s proximity to the United States, the high level of bilateral trade, and the strong cultural and economic ties that connect the two countries. Also, it is of national interest for the United States to have a prosperous and democratic Mexico as a neighboring country. Mexico is the United States\u2019 third-largest trading partner, while the United States is, by far, Mexico\u2019s largest trading partner. Mexico ranks third as a source of U.S. imports, after China and Canada, and second, after Canada, as an export market for U.S. goods and services. The United States is the largest source of foreign direct investment (FDI) in Mexico. \nThe United States and Mexico have strong economic ties through the North American Free Trade Agreement (NAFTA), which has been in effect since 1994. Most studies show that the net economic effects of NAFTA on both countries have been small but positive, though there have been adjustment costs to some sectors within both countries. Much of the bilateral trade between the United States and Mexico occurs in the context of supply chains as manufacturers in each country work together to create goods. The expansion of trade has resulted in the creation of vertical supply relationships, especially along the U.S.-Mexico border. The flow of intermediate inputs produced in the United States and exported to Mexico and the return flow of finished products greatly increased the importance of the U.S.-Mexico border region as a production site. U.S. manufacturing industries, including automotive, electronics, appliances, and machinery, all rely on the assistance of Mexican manufacturers.\nThe 115th Congress faces numerous issues related to U.S.-Mexico trade and investment relations. The Administration of Donald J. Trump has proposed renegotiating NAFTA, or possibly withdrawing from it. Congress may wish to consider the ramifications of renegotiating or withdrawing from NAFTA and how it may affect the U.S. economy and foreign relations with Mexico. It may also wish to examine the congressional role in a possible renegotiation, as well as the negotiating positions of Mexico and Canada. Mexico has stated that, if NAFTA is reopened, it may seek to broaden negotiations to include security, counter-narcotics, and transmigration issues. Mexico has also indicated that it may choose to withdraw from the agreement if the negotiations are not favorable to the country. Congress may also wish to address issues related to the U.S. withdrawal from the proposed Trans-Pacific Partnership (TPP) free trade agreement among the United States, Canada, Mexico, and 9 other countries. Some observers contend that the withdrawal from TPP could damage U.S. competitiveness and economic leadership in the region, while others see the withdrawal as a way to prevent lower cost imports and potential job losses. Key provisions in TPP may also be addressed in \u201cmodernizing\u201d or renegotiating NAFTA, a more than two decade-old FTA. \nCongress also may maintain an active interest in ongoing bilateral efforts to promote economic competitiveness, increase regulatory cooperation, and pursue energy integration. Under the U.S.-Mexico High Level Economic Dialogue (HLED), which was first launched in September 2013, the United States and Mexico are striving to advance economic and commercial priorities through annual meetings at the Cabinet level that also include leaders from the public and private sectors. Another bilateral initiative that may be of interest to policymakers is the High-Level Regulatory Cooperation Council (HLRCC), launched in February 2012, which is intended to help align regulatory principles. In addition, the two countries have a bilateral border management initiative under the Declaration Concerning 21st Center Border Management that was announced in 2010.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL32934", "sha1": "72a33375015746fb8cd5ce61448572904609dc66", "filename": "files/20170427_RL32934_72a33375015746fb8cd5ce61448572904609dc66.html", "images": { "/products/Getimages/?directory=RL/html/RL32934_files&id=/4.png": "files/20170427_RL32934_images_de141473348ff68c3a7ce93fa56a05d430239c11.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/1.png": "files/20170427_RL32934_images_e7da4efb4bb6be86ecb0ddd57ad0b514bbe24f67.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/0.png": "files/20170427_RL32934_images_9e636f10dc7553fa5a3772249b06981c259cdfd6.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/2.png": "files/20170427_RL32934_images_620bc26a55a5f3c0bab98b99fd8f59a9951be9ca.png", "/products/Getimages/?directory=RL/html/RL32934_files&id=/3.png": "files/20170427_RL32934_images_01b6dea3605dcdbcb5c0fec8ea71565b640002d5.png" } }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL32934", "sha1": "eed2a3ff1e5ebf6218c665da85a7819daa074cd5", "filename": "files/20170427_RL32934_eed2a3ff1e5ebf6218c665da85a7819daa074cd5.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4847, "name": "Latin America, Caribbean, & Canada" }, { "source": "IBCList", "id": 4938, "name": "Major Economies & U.S. Trade Relations" } ] }, { "source": "EveryCRSReport.com", "id": 457057, "date": "2016-11-04", "retrieved": "2016-11-21T15:11:55.681141", "title": "U.S.-Mexico Economic Relations: Trends, Issues, and Implications ", "summary": "During the 114th Congress, policymakers have maintained an interest in Mexico on issues related to the proposed Trans-Pacific Partnership (TPP) agreement and possible effects on U.S.-Mexico trade relations; cross-border trade and investment; trade issues related to the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO); Mexico\u2019s economic reform measures, especially in the energy sector; and U.S.-Mexico border management. Congress has also maintained an active interest in ongoing bilateral efforts to promote economic competitiveness, increase regulatory cooperation, and pursue energy integration. Under the U.S.-Mexico High Level Economic Dialogue (HLED), which was first launched in September 2013, the United States and Mexico are striving to advance economic and commercial priorities through annual meetings at the Cabinet level that also include leaders from the public and private sectors. Another bilateral initiative that may be of interest to policymakers is the High-Level Regulatory Cooperation Council (HLRCC), launched in February 2012, which is intended to help align regulatory principles. In addition, the two countries have a bilateral initiative for improving border management under the Declaration Concerning 21st Center Border Management that was announced in 2010.\nThe economic and trade relationship with Mexico is of interest to U.S. policymakers because of Mexico\u2019s proximity to the United States, the high level of bilateral trade, and the strong cultural and economic ties that connect the two countries. Also, it is of national interest for the United States to have a prosperous and democratic Mexico as a neighboring country. Mexico is the United States\u2019 third-largest trading partner, while the United States is, by far, Mexico\u2019s largest trading partner. Mexico ranks third as a source of U.S. imports, after China and Canada, and second, after Canada, as an export market for U.S. goods and services. The United States is the largest source of foreign direct investment (FDI) in Mexico. \nThe United States and Mexico have strong economic ties through NAFTA, which has been in effect since 1994. Most studies show that the net economic effects of NAFTA on both countries have been small but positive, though there have been adjustment costs to some sectors within both countries. Much of the bilateral trade between the United States and Mexico occurs in the context of supply chains as manufacturers in each country work together to create goods. The expansion of trade has resulted in the creation of vertical supply relationships, especially along the U.S.-Mexico border. The flow of intermediate inputs produced in the United States and exported to Mexico and the return flow of finished products greatly increased the importance of the U.S.-Mexico border region as a production site. U.S. manufacturing industries, including automotive, electronics, appliances, and machinery, all rely on the assistance of Mexican manufacturers. \nNegotiations for the proposed TPP were concluded on October 5, 2015. The agreement was signed on February 4, 2016. If approved by Congress and entered into force, the agreement would likely enhance the economic links Mexico already has with the United States and Canada under NAFTA. Policymakers may consider how a TPP would affect the U.S.-Mexico trade and investment relationship. Because almost all U.S. trade with Mexico is now conducted duty and barrier free under NAFTA, the TPP would be unlikely to have a major effect on trade but it could alter certain rules governing trade and investment. A TPP may have implications in several areas, including intellectual property rights protection, investment, state-owned enterprises, services trade, agriculture, government procurement, worker rights, and the environment.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL32934", "sha1": "bae60dfe7cea9f9b4c200d2fbad3cc4fb21ef170", "filename": "files/20161104_RL32934_bae60dfe7cea9f9b4c200d2fbad3cc4fb21ef170.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL32934", "sha1": "b1e3494796ae2d31a5fd3c65e82d946c8c742aa4", "filename": "files/20161104_RL32934_b1e3494796ae2d31a5fd3c65e82d946c8c742aa4.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4847, "name": "Latin America, Caribbean, & Canada" }, { "source": "IBCList", "id": 4938, "name": "Major Economies & U.S. Trade Relations" } ] }, { "source": "EveryCRSReport.com", "id": 451065, "date": "2016-03-23", "retrieved": "2016-03-24T16:58:55.709692", "title": "U.S.-Mexico Economic Relations: Trends, Issues, and Implications ", "summary": "During the 114th Congress, policy makers will likely maintain an interest in Mexico on issues related to the proposed Trans-Pacific Partnership (TPP) agreement and possible effects on U.S.-Mexico trade relations; cross-border trade and investment; trade issues related to the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO); Mexico\u2019s economic reform measures, especially in the energy sector; and U.S.-Mexico border management. Congress may also take an active interest in ongoing bilateral efforts to promote economic competitiveness, increase regulatory cooperation, and pursue energy integration. Under the U.S.-Mexico High Level Economic Dialogue (HLED), which was launched in September 2013, the United States and Mexico are striving to advance economic and commercial priorities through annual meetings at the Cabinet level that also include leaders from the public and private sectors. Another bilateral initiative that may be of interest to policy makers is the High-Level Regulatory Cooperation Council (HLRCC), launched in February 2012, which is intended to help align regulatory principles. In addition, the two countries have a bilateral initiative for improving border management under the Declaration Concerning 21st Center Border Management that was announced in 2010.\nThe economic and trade relationship with Mexico is of interest to U.S. policymakers because of Mexico\u2019s proximity to the United States, the high level of bilateral trade, and the strong cultural and economic ties that connect the two countries. Also, it is of national interest for the United States to have a prosperous and democratic Mexico as a neighboring country. Mexico is the United States\u2019 third-largest trading partner, while the United States is, by far, Mexico\u2019s largest trading partner. Mexico ranks third as a source of U.S. imports, after China and Canada, and second, after Canada, as an export market for U.S. goods and services. The United States is the largest source of foreign direct investment (FDI) in Mexico. \nThe United States and Mexico have strong economic ties through NAFTA, which has been in effect since 1994. Most studies show that the net economic effects of NAFTA on both countries have been small but positive, though there have been adjustment costs to some sectors within both countries. Much of the bilateral trade between the United States and Mexico occurs in the context of supply chains as manufacturers in each country work together to create goods. The expansion of trade has resulted in the creation of vertical supply relationships, especially along the U.S.-Mexico border. The flow of intermediate inputs produced in the United States and exported to Mexico and the return flow of finished products greatly increased the importance of the U.S.-Mexico border region as a production site. 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