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U.S. Department of State

Background Notes: Mexico, October 1997

Released by the Bureau of Inter-American Affairs.

OFFICIAL NAME: United Mexican States

PROFILE

Geography

Area: 1,972,500 sq. km. (761,600 sq. mi.); about three times the size of Texas.
Cities: Capital-Mexico City (15 million, 1990 census). Other cities-Guadalajara, Monterrey, Puebla, Leon.
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 (1997 est.): 95 million.
Annual growth rate (net): 1.8%.
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. Literacy-89%.
Health (1996 est.): Infant mortality rate-30/1,000. Life expectancy-male 70 yrs., female 76 yrs.
Labor force (33 million): Agriculture, forestry, hunting, fishing-26%. Services-24%. Commerce-24%. Manufacturing-15%. Construction-6%. Transportation and communication-4%. Mining and quarrying-1%.

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

GDP (1997, proj.): $370 billion.
Per capita GDP (1997, proj.): $3,911.
Annual real GDP growth (1997, proj.): 5%; 1996: 5.1%; 1995: -6.2%.
Avg. annual real GDP growth (1989-94): 3%.
Inflation rate (1997, proj.): 18%; 1996: 28%.
Natural resources: Petroleum, silver, copper, gold, lead, zinc, natural gas, timber.
Agriculture (5.8% of GDP): Products-corn, beans, oilseeds, feedgrains, fruit, cotton, coffee, sugarcane, winter vegetables.
Industry: Types-manufacturing (22% of GDP), services, commerce, transportation and communications, petroleum and mining.
Trade (1996, Bank of Mexico): Exports-$96 billion: manufacturing 84%, petroleum and derivatives 10%, agriculture 5%, other 1%. Major markets: U.S. (84%), Europe (4%), South America (4%), Canada (2%). Imports-$89.5 billion: intermediate goods 80%, capital goods 10%, consumer goods 7%, other 3%. Major sources (1996, U.S. Department of Commerce): U.S. (76%), Europe (9%), Japan (5%), Canada (2%). Imports from U.S.-$56.8 billion. Exports to U.S.- $73 billion.
Average exchange rate (1996): 7.60 pesos = U.S. $1.

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 20 million, which would make it the largest concentration of population in the world. 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.

HISTORY

Highly advanced 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; this launched a war for independence. 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.

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.

Santa Ana was Mexico's leader during the conflict with Texas, which declared itself independent from Mexico in 1836, and during Mexico's war with the United States (1846-48). The presidential terms of Benito Juarez (1858-71) were interrupted by the Hapsburg monarchy's rule of Mexico (1864-1867). Archduke Maximilian of Austria, whom Napoleon III of France established as Emperor of Mexico, was deposed by Juarez and executed in 1867. General Porfirio Diaz 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 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, continues to be the most important political force in the nation. It emerged as a coalition of interests after the chaos of the Revolution as a vehicle for keeping political competition in peaceful channels. For almost 70 years, Mexico's national government has been controlled by the PRI, which has won every presidential race and most gubernatorial races.

GOVERNMENT

The 1917 constitution provides for a federal republic with powers separated into independent executive, legislative, and judicial branches. In practice, the executive is the dominant branch, with power vested in the president, who promulgates and executes the laws of the Congress. 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 six-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 six-year terms. Implementing constitutional changes made in 1996, for the first time in the July 1997 elections, 32 of the 128 Senate seats were proportionally elected from national party lists. The 32 Senators elected in 1997 will only serve three-year terms, in order to bring the entire Senate back into the same cycle in the year 2000. Deputies serve three-year terms. 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 created for this purpose across the country. 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 two-year sentence. Practice 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.

National Security

Mexico's armed forces in 1995 numbered about 175,000. The army makes up about three-fourths of the total. One year of limited training is required of all males at age 18. Principal military roles include national defense, narcotics control, and civic action assignments such as road-building, search and rescue, and disaster relief.

Principal Government Officials

President-Ernesto ZEDILLO Ponce de Leon
Foreign Minister-Jose Angel GURRIA Trevino
Ambassador to the U.S.-Jesus REYES HEROLES
Ambassador to the United Nations-Manuel TELLO Macias
Ambassador to the OAS-Carmen MORENO de del Cueto

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).

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

Ernesto Zedillo Ponce de Leon was sworn in on December 1, 1994, as the President of Mexico. A trained economist with degrees from Yale, Zedillo served as Secretary of Programming and Bud-get and Secretary of Education in the Salinas Administration prior to being elected.

President Zedillo continued the process already underway of opening Mexico's political system, reforming the justice system, curtailing corruption, strengthening the fight against narcotics trafficking, and furthering Mexico's market-oriented economic policies. A severe financial crisis occupied much of the Zedillo Administration's attention in 1995-96, creating a need for difficult emergency economic stabilization policies and intensified longer-term economic restructuring.

Political Scene

Unexpected and traumatic events in early 1994 convulsed the Mexican political scene. In January 1994, peasants in the state of Chiapas briefly took up arms against the government, protesting alleged oppression and governmental indifference to poverty. The government and the Zapatista Army of National Liberation (EZLN) have negotiated on topics such as granting greater autonomy to indigenous peoples since then, reaching several partial accords. There have been no clashes since the government's unilaterally declared cease-fire in 1994, and the two sides remain committed to a negotiated peace settlement.

In March 1994, PRI presidential candidate Luis Donaldo Colosio was assassinated. In September 1994, PRI Secretary General Jose Francisco Ruiz Massieu was also assassinated. Although the gunmen in both murders and co-conspirators in the Ruiz Massieu murder were tried and convicted, the Mexican public is not satisfied that all the truth behind these crimes has been uncovered.

Investigations into the murders resulted in the apprehensions in February 1995 of a second gunman in the Colosio murder, the arrest of the brother of former president Carlos Salinas as a suspected mastermind behind the second crime, and the filing of charges in March 1995 against the brother of Ruiz Massieu for obstructing investigations into the murder. Additional charges, including illegal enrichment for amassing multi-million dollar fortunes in overseas bank accounts, were filed against both men and investigations were widened to include their associates.

This has led to a flurry of public scandals regarding supposed attempts at obstruction of justice and allegations of major corruption in police, judicial, military and other authorities, as well as big business, including allegations of ties to narcotics trafficking. The atmosphere of scandal around former President Carlos Salinas has turned him into something of an arch-villain in the popular mind.

A new group of uncertain origin and size, the Popular Revolutionary Army (EPR), made its appearance in southern Mexico on June 28, 1996. The Government considers the EPR a terrorist organization and has vowed to bring the group to justice. This and the assassination of senior law enforcement officers by suspected drug traffickers in northern Mexico also has contributed to increased attention and concern over public safety.

Recent Elections and Electoral Reform

A record 78% of registered voters cast ballots in the 1994 presidential election. Election officials declared Zedillo of the PRI the winner with 49% of the vote, followed by National Action Party (PAN) candidate Diego Fernandez de Cevallos with 26% and Cuauhtemoc Cardenas of the Party of the Democratic Revolution (PRD) with 17%. Despite 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 which did occur 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.

These extraordinary electoral observation measures were needed to overcome public suspicions that electoral fraud might be committed. Over the years, the PRI has relied on extensive patronage and massive government and party organizational resources to maintain its continuance in power. In many cases, the party has been accused of fraud. However, as numerous electoral reforms implemented since 1989 have aided in the further opening of the Mexican political system, opposition parties have made historic gains in elections at all levels. Most of the concerns shifted from fraud to campaign fairness issues.

During 1995-96 the political parties negotiated constitutional amendments to address electoral campaign fairness issues, which passed unanimously. In these negotiations, the parties were supported by consultations with civic organizations. It proved a disappointment when implementing legislation could not also be passed by consensus due primarily to disagreements over levels of public funding for political parties. The package of laws passed by the PRI majority in congress did include, however, major points of consensus that had been worked out with the opposition parties. The thrust of the new laws is to have public financing predominate over private contributions to political parties, to tighten procedures for auditing the political parties, and to strengthen the authority and independence of electoral institutions.

Even before the new electoral law was passed, opposition parties obtained an increasing voice in Mexico's political system. A substantial number of candidates from opposition parties won election to the Chamber of Deputies and Senate. Many municipalities were governed by opposition mayors, and the PAN won the governorships of four states.

The court system was also given greatly expanded authority to hear civil rights cases on electoral matters brought by individuals or groups. In short, a serious effort was made to "level the playing field" for the parties.

Mid-term elections held July 6, 1997 saw large gains for opposition parties and marked a significant step in Mexico's political transformation. For the first time in its 68-year history, the PRI lost its absolute majority in the Chamber of Deputies. The opposition majority is split among four parties: the PRD, the PAN and two small parties, the Labor Party (PT), and the Green Ecological Party (PVEM). The opposition also gained ground in the Senate, where the PRI still retains an overall majority but fell below the two-thirds majority important in constitutional amendments.

In another important electoral development, the PRD candidate, Cuauhtemoc Cardenas, won the first modern election for mayor of Mexico City (this post was previously appointed by the Mexican president). In state elections, the PAN won two additional governorships, giving it a total of six. More than 40% of Mexico's population is now governed by an opposition party at the state or municipal level.

Other Reforms

To help reorganize the Mexican justice system, President Zedillo appointed as Attorney General a respected member of the opposition PAN party, the first time an opposition member has held a cabinet post in Mexico. However, Attorney General Antonio Lozano was dismissed in late 1996 amid controversy regarding investigations into prominent murder and corruption cases. Constitutional and legal changes were adopted 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. A variety of laws was also passed in 1995-96 to help control organized crime.

Although the constitution provides for three branches of government, the Mexican presidency traditionally occupies a dominant position. In order to overcome this "presidentialism," the Zedillo Administration has sought to develop a greater role for the Congress, notably by inviting the participation of a multi-party legislative commission in the Chiapas peace negotiations and seeking congressional approval of the financial assistance package signed by the U.S. and Mexico in February 1995. The judicial reforms mentioned above are in part designed to allow the judicial branch of government to become a more effective counter-weight to the other two branches. The Zedillo Administration has also promoted a "New Federalism" to devolve more power to state and local governments, starting with pilot programs in education and health.

Education

Although educational levels in Mexico have improved substantially in recent decades, the country still faces daunting problems. Education is one of the Government of Mexico's highest priorities and it has increased the education budget 7.2% over 1996 to $15 billion for 1997-one-fourth of the total budget. Education in Mexico is also being decentralized from federal to state authority in order to improve accountability.

Education is mandatory from ages six through 18. The increase in school enrollments during the past two decades has been dramatic. By 1994, an estimated 59% of the population between the ages of six and 18 were enrolled in school. Primary (including preschool) enrollment in public schools from 1970 through 1994 increased from less than 10 million to 17.5 million. Enrollment at the secondary public school level rose from 1.4 million in 1972 to as many as 4.5 million in 1994. A rapid rise also occurred in higher education. Between 1959 and 1994, college enrollments rose from 62,000 to more than 1.2 million.

Although education spending has risen dramatically, given increased enrollment, a net decline occurred in per student expenditures. The Mexican Government concedes that despite this progress, 2 million children still do not have access to basic education, and hopes to provide access to half of those children by the year 2000.

ECONOMY

Sustained economic growth is vital to Mexico's prospects for a successful evolution to a more competitive democracy. Mexico's level of economic prosperity has a direct, though proportionally smaller impact on the U.S. as it affects trade and migration. In recent years Mexico has sought economic prosperity through liberalization of its trade regime. In January 1994, Mexico joined Canada and the United States in the North American Free Trade Agreement (NAFTA), which will phase out all tariffs over a 15-year period. Four months later, in April 1994, Mexico joined the Organization for Economic Cooperation and Development (OECD). Mexico was the first Latin American member of the Asia-Pacific Economic Cooperation forum (APEC), joining in 1993, and in January 1996, became a founding member of the World Trade Organization (WTO).

Mexico's NAFTA membership helped the Mexican economy grow by 3.5% in 1994. Following the December 1994 devaluation of the peso, however, Mexico experienced a severe financial crisis that also threatened the stability of other emerging market economies, especially in Latin America.

The United States responded by leading a group of international lenders in making available to Mexico over $40 billion in international financial assistance, including $20 billion from the United States. This action helped stabilize the Mexican economy, allowing Mexico to repay the loans to the United States more than three years ahead of schedule and with $580 million in interest.

In 1996, Mexico's economy grew over 5%, recovering from the recession more briskly than anticipated. Inflation fell, unemployment fell, and the peso stabilized. Mexican real GDP is expected to grow about 5% in 1997.

Although the 1995 recession was severe, with real GDP falling 6.2%, tough stabilization measures averted an even more serious collapse and brought about a rapid recovery. NAFTA contributed to the process of adjustment by enabling Mexico to reduce its current account deficit through increased exports rather than through slashing imports from the United States, as it had following the 1982 debt crisis.

Trade

Mexico was the United States' third-ranked trading partner in 1996, accounting for 9% of U.S. trade. In 1996, U.S. $56.8 billion in exports to Mexico were almost equal to our exports to Japan, even though the Mexican economy is just one-seventh the size of Japan's. The United States was Mexico's predominant trading partner, accounting for 84% of Mexican exports and 76% of Mexican imports. The chief U.S. exports to Mexico were motor vehicle parts, office equipment, and agricultural products; the top imports from Mexico included petroleum, cars, and coffee. The United States in 1996 was the source of 60% of all direct foreign investment in Mexico.

U.S.-Mexico trade increased during NAFTA's first three years. In 1996, U.S. exports to Mexico were up 36% and U.S. imports from Mexico were up 80% over 1993 levels. Cyclical economic factors, rather than NAFTA, caused a trade deficit in 1995 and 1996; strong growth in U.S. demand, along with the Mexican recession and devaluation of the peso, increased U.S. imports from Mexico while slowing growth in U.S. exports.

NAFTA eliminates restrictions on the flow of goods, services, and investment in North America. In addition to phasing out tariffs, NAFTA eliminates, as far as possible, non-tariff barriers and promotes safeguards for intellectual property rights-patents, copyrights, and trademarks. The pact also includes provisions on trade rules and dispute settlement, and its parallel labor agreement seeks to ensure full protection of workers' rights.

Through its supplemental environmental cooperation agreement, NAFTA marked the first time in the history of U.S. trade policy that environmental concerns have been addressed in a comprehensive trade agreement. The pact also serves as a basis for enhancing ongoing U.S.-Mexico cooperation on a host of other issues that do not respect national borders.

Agriculture

Mexico's agrarian reform program began in 1917, when the government began distribution of land to farmers. Extended further in the 1930s, 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. This, combined with poor soil, several recent years of low rainfall, and rural population growth, has made it difficult to raise the productivity and living standards of Mexico's subsistence farmers.

Mexico's agricultural sector continues to experience heavy debt problems, even as the government seeks to foster a shift to a market-oriented and competitive farming industry. High interest rates for loans have compounded the difficulty for producers, and the 1994 peso crisis exacerbated the decline in productivity. According to the Mexican Government's office of statistics, agriculture accounted for 5.8% of GDP in 1996.

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 it, opening the way for larger farms and economies of scale. By early 1996, however, only six farmers' cooperatives had voted to disincorporate. Since communal land use is formally reviewed only every two years, privatization of these communal lands may continue to be very slow.

In the past, the government encouraged production of basic crops such as corn and beans by maintaining support prices. In order to rationalize its agricultural sector, Mexico is phasing out its support price scheme. Corn production dropped in 1995 and 1996 as more was imported. The government in 1996 crafted federal-to-state agreements targeted at each states' most urgent needs, with the goal of increasing the use of modern equipment and technology in order to increase per-acre productivity.

In addition to this new initiative, the government is continuing PROCAMPO, the rural support program which provides the approximately 3.5 million farmers who produce basic commodities-about 64% of all farmers-with a fixed payment per hectare of cropland.

Manufacturing and Foreign Investment

Mexico's manufacturing sector in 1996 accounted for 22% of the GDP and 21% of employment in the formal urban economy. Manufacturing grew 11% after having declined 5% during Mexico's recession in 1995.

The industrial sector as a whole, which along with manufacturing includes construction, electricity, and mining, grew 10% in 1996, following a drop of 8% in 1995. Construction rebounded with 11% growth after declining 23% in 1996.

In December 1993, Mexico passed a new foreign investment law which promotes competitiveness and established clear rules for the entry of international capital into productive activities. The law also permits foreigners to own non-residential property in the "restricted zones"-within 100 kilometers (62 miles) of the border and 50 kilometers of the coasts. Residential property in these zones still must be acquired via a trust through a Mexican financial institution. Total new direct foreign investment in 1995 was $7 billion, down from $11 billion in 1994. Direct foreign investment of at least $8 billion is widely expected to have taken place in 1996, although the final tallies have not been released.

Transportation and Communications

The Zedillo Administration is continuing the previous government's modernization of infrastructure and services, de-regulation and development of more efficient transport systems, and increased privatization. Mexico's land transportation network is one of the most extensive in Latin America. More than 4,000 kilo-meters (2,400 miles) of four-lane highway have been built through government concessions to private sector contractors since 1989. The 36,000 kilo-meters (22,000 miles) of government-owned railroads in Mexico are currently being privatized through sale of 50-year operating concessions. The Northeast railroad, Mexico's primary freight carrier, was privatized early in 1997 for $1.4 billion. Another significant section, the Northwest railroad, was privatized in June 1997 for $400 million.

Tampico and Veracruz, on the Gulf of Mexico, are Mexico's two primary seaports. Recognizing that the low productivity of Mexico's 79 ports poses a threat to trade development, the government has steadily been privatizing port operations to improve their efficiency.

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 service to Mexico City or the United States. Airport privatization, based on the successful experience with ports, should begin by the end of 1997.

Mexico has taken significant steps to modernize its telecommunications system. A key element was the privatization in 1990 of the national telephone company, Telefonos de Mexico (TELMEX), which was sold to a consortium of Mexican investors, Southwestern Bell, and France Telcom. This privatization has meant an increased rate of infrastructure enhancement. In addition, eight regional companies are providing cellular telephone service to various parts of Mexico, resulting in a dramatic expansion of cellular telephone users. Two larger communications satellites have been ordered to replace the two now in use. The government has also opened the telecommunications sector to greater foreign investment. Starting in 1997, long-distance telecommunications service will be a much more competitive industry in Mexico, with nine consortia (two of them having significant fiber optic systems of their own) giving Telmex strong competition for the customer base.

FOREIGN RELATIONS

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 non-intervention 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.

Mexico actively participates in several international organizations. 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 the Organization of Petroleum Exporting Countries. Nevertheless, Mexico does seek to diversify its diplomatic and economic relations, as demonstrated by its accession to GATT in 1986; its joining APEC in 1993; becoming, in April 1994, the first Latin American member of the OECD; and a founding member of the World Trade Organization (WTO) in 1996. Mexico attended the 1994 Summit of the Americas, held in Miami, and agreed to assume responsibility for coordination of the agenda item on education.

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. Our relations with Mexico have a direct impact on the lives and livelihoods of millions of Americans-whether the issue is trade and economic reform, 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 nearly 290 million legal crossings from Mexico to the United States in fiscal year 1995. In addition, more than half a million American citizens live in Mexico. More than 2,600 U.S. companies have operations there, and the U.S. accounts for 60% of all foreign direct investment in Mexico. Along the 2,000-mile shared border, state and local governments interact closely.

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 sub-groups meet during the course of the year to discuss trade and investment opportunities, financial cooperation, consular issues and migration, legal affairs and anti-narcotics cooperation, cultural relations, education, energy, border cooperation, environment, labor, agriculture, health, housing and urban development, transportation, fisheries, tourism, and science and technology. The Commission met most recently on May 5, 1997 in conjunction with President Clinton's visit to Mexico.

A strong partnership with Mexico is critical to controlling the flow of illicit drugs into the United States. The U.S. has certified Mexico as fully cooperating in this effort based on an unprecedented level of cooperation on counternarcotics and Mexico's own initiatives in fighting drug trafficking. This is the best way to ensure that Mexico's cooperation and anti-drug efforts grow even stronger.

During 1996, the U.S. and Mexico established a High-Level Contact Group (HLCG) on narcotics control to explore joint solutions to the shared drug threat, to coordinate the full range of narcotics issues and to promote closer law enforcement coordination.

The United States and Mexico have a long history of cooperation on environmental and natural resources 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:

A 1944 treaty creating the International Boundary and Water Commission, which has a wide range of responsibilities for solving U.S.-Mexico water and boundary problems, such as distributing the waters of the Colorado River and the Rio Grande between the two countries; jointly operating international dams and other joint flood control works along boundary rivers; and solving border water quality control problems. Since the early 1980's the IBWC has focused on border sanitation and groundwater resources.

The 1983 La Paz Agreement to protect and improve the border environment.

The 1993 North American Commission on Environmental Cooperation, created under NAFTA by the U.S., Mexico, and Canada, to strengthen environmental laws and address common environmental concerns; and

A November 1993 agreement between the U.S. and Mexico, also under NAFTA, establishing the Border Environmental Cooperation Commission (BECC) which works with local communities to build or upgrade environmental infrastructure such as wastewater treatment plants, drinking water systems, and solid waste disposal facilities; and the North American Development Bank, which leverages private sector capital to finance border environmental infrastructure projects certified by the BECC.

Principal U.S. Officials

Ambassador-vacant
Charge d'Affaires-Charles H. Brayshaw
Minister-Counselor for Political Affairs-Valentino Martinez
Minister-Counselor for Economic Affairs-William Brew
Counselor for Labor Affairs-John Ritchie
Minister-Counselor for Public Affairs (USIS)-Donald R. Hamilton
Minister-Counselor for Consular Affairs-Thomas Furey
Consul General-Victor Abiyta
Counselor for Scientific and Technological Affairs-Paul Maxwell
Counselor for Commercial Affairs-Kevin C. Brennan

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. Telephone (from the U.S.): (011)(52-5) 209-9100. The Embassy and the 18 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 and Consulates and Officials

Consulate General, Ciudad Juarez-James Ward
Address: Avenida Lopez Mateos 924-N, 32000 Ciudad Juarez, Chihuahua
Mailing Address: Box 10545, El Paso, Texas 79995-0545
Telephone (from the U.S.): (011)(52-16) 13-4048

Consulate General, Guadalajara-Danny B. Root
Address: Progreso 175, 44100, Guadalajara, Jalisco
Mailing Address: Box 3088, Laredo, Texas 78044-3088
Telephone (from the U.S.): (011)(52-38) 25-2998

Consulate General, Monterrey-Daniel Johnson
Address: Avenida Constitution 411, Poniente, 64000 Monterrey, Nuevo Leon
Mailing Address: Box 3098, Laredo, Texas 78044-3098
Telephone (from the U.S.): (011)(52-83) 45-2120

Consulate General, Tijuana-Nick Hahn
Address: Tapachula 96, 22420 Tijuana, Baja California Norte
Postal Address: P.O. Box 439039, San Diego, California 92143-9039
Telephone (from the U.S.): (011)(52-66) 81-7400

Consulate, Hermosillo-Sandra Salmon
Address: Calle Monterrey 141 Pte., 83260, Hermosillo, Sonora
Postal Address: Box 3598, Laredo, Texas 78044-3598
Telephone (from the U.S.): (011)(52-62) 17-2375

Consulate, Matamoros-George B. Kopf
Address: Ave. Primera 2002, 87330, Matamoros, Tamaulipas
Postal Address: Box 633, Brownsville, Texas 78522-0633
Telephone (from the U.S.): (011)(52-88) 12-4402

Consulate, Merida-David Ramos
Address: Paseo Montejo 453, 97000, Merida, Yucatan
Postal Address: Box 3087, Laredo, Texas 78044-3087
Telephone (from the U.S.): (011)(52-99) 25-5011

Consulate, Nuevo Laredo-Rufus R. Watkins
Address: Calle Allende 3330, Col. Jardin, 88260 Nuevo Laredo, Tamaulipas
Postal Address: Box 3089, Laredo, Texas 78044-3089
Telephone (from the U.S.): (011)(52-87) 14-0512

Consular Agents

Acapulco-Joyce Anderson
Address: Hotel Club del Sol, 39300, Acapulco, Guerrero
Telephone (from the U.S.): (011)(52-74) 85-7207 or 5-6600

Cabo San Lucas-David Greenberg
Address: Blvd. Marina Y Calle del Cerro, Local No. 3, Zona Centro, Cabo San Lucas, Baja California Sur
Telephone (from the U.S.): (011)(52-114) 3-3566

Cancun-Carol Butler
Address: Plaza Caracol 2, 3o piso, 320323 Blvd. Kukulkan, Km. 8.5, Zona Hotelera, Cancun, Quintana Roo
Telephone (from the U.S.): (011)(52-988) 3-0272

Ixtapa-Elizabeth Williams
Address: Paseo de los Hujes s/n
Esq. Palo de Arco
Col. Lelhujal
40880 Zihuatanejo, Gro.
Telephone (from the U.S.): (011)(52-73) 53-1108

Mazatlan-Jerianne Nelson Gallardo
Address: Hotel Playa Mazatlan, Roldolfo T. Loaiza 202, Zona Dorada, 82110, Mazatlan, Sinaloa
Telephone (from the U.S.): (011)(52-69) 13-4444, ext. 285

Oaxaca-Mark A. Leyes
Address: Alcala 201, - Desp. 206 Oaxaca, 68000 Oaxaca, Oax.
Telephone (from the U.S.): (011)(52-951) 4-3054

Puerto Vallarta-Laura Holmstrom
Address: Edificio Vallarta, Plaza Zaragoza 160, Piso 2, Int. 18, 48300, Puerto Vallarta, Jalisco
Telephone (from the U.S.): (011)(52-322) 2-0069

San Luis Potosi-Kathleen C. Reza
Address: Francisco de P. Moriel 103-10, Desp. 1, San Luis Potosi,
Telephone (from the U.S.): (011)(52-481) 2-1528

San Miguel de Allende-Philip Maher
Address: Dr. Hernandez Macias 72, 37700, San Miguel de Allende, Guanajuato
Telephone (from the U.S.): (011)(52-415) 2-2357 or 2-0068

Other Contact Information

American Chamber of Commerce of Mexico
A.C. Lucerna 78-4 06600 Mexico
D.F. Mexico
Tel: (525) 724-3800
Fax: (525) 703-3908
E-Mail: amchammxamcham.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, N.W
Washington, DC 20230
Tel: 202-482-0305; 202-USA-TRADE
Fax: 202-482-0464.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the country. Public Announcements are issued as a means to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas which pose significant risks to the security of American travelers. Free copies of this information are available by calling the Bureau of Consular Affairs at 202-647-5225 or via the fax-on-demand system: 202-647-3000. Travel Warnings and Consular Information Sheets also are available on the Consular Affairs Internet home page: http://travel.state.gov and the Consular Affairs Bulletin Board (CABB). To access CABB, dial the modem number: (301-946-4400 (it will accommodate up to 33,600 bps), set terminal communications program to N-8-1 (no parity, 8 bits, 1 stop bit); and terminal emulation to VT100. The login is travel and the password is info (Note: Lower case is required). The CABB also carries international security information from the Overseas Security Advisory Council and Department's Bureau of Diplomatic Security. Consular Affairs Trips for Travelers publication series, which contain information on obtaining passports and planning a safe trip abroad, can be purchased from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954; telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000.

Passport Services information can be obtained by calling the 24-hour, 7-day a week automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648)

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at (404) 332-4559 gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you in case of an emergency.

Further Electronic Information:

Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official magazine of U.S. foreign policy; daily press briefings; Country Commercial Guides; directories of key officers of foreign service posts; etc. DOSFAN's World Wide Web site is at .

U.S. Foreign Affairs on CD-ROM (USFAC). Published on a semi-annual basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Contact the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. To order, call (202) 512-1800 or fax (202) 512-2250.

National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information. It is available on the Internet () and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information.

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