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Mexico and the United States: Neighbors, Partners, and Friends

By Lauren Miller

On the eve of Secretary Hillary Clinton's trip to Mexico, an AS/COA panel examined bilateral approaches to solve security issues and overcome financial concerns. Mexican Ambassador to the U.S. Arturo Sarukhán and former U.S. Ambassador to Mexico Jim Jones participated.

Speakers:

  • Arturo Sarukhán, Ambassador of Mexico to the United States
  • James Jones, Former U.S. Ambassador to Mexico
  • Kevin Hall, National Economics Reporter, McClatchy Washington Bureau (Moderator)
  • Susan Segal, President & CEO, Americas Society/Council of the Americas

Introduction

On March 23, 2009 the Americas Society/Council of the Americas hosted “Mexico and the United States: Neighbors, Partners, and Friends,” a program in advance of diplomatic visits by members of the Obama administration to Mexico. Participants discussed the effects of recent drug violence in the border region and possibilities for economic and diplomatic engagement between Mexico and the United States. They also expressed optimism for improved diplomatic and economic ties between the two countries in the near future.

Stepping Up Economic Engagement

Mexican Ambassador Arturo Sarukhán began the discussion by saying he is “deeply impressed” by the Obama administration’s understanding of the importance of the bilateral relationship. He highlighted several strategic collaborative opportunities for Mexico and the United States to strengthen the entire region. Sarukhán explained that, through technology sharing and a preventative focus on narcotics trafficking, the United States and Mexico can improve international security against potential terrorist attacks and drug violence. He also encouraged increased investment in renewable energy technologies, infrastructure, and healthcare to achieve bilateral goals.

The discussants agreed that sound macroeconomic policies have greatly helped Mexico throughout the global financial crisis. Former U.S. Ambassador to Mexico James Jones pointed out areas, such as infrastructure and green technology development, where Obama and Calderón can work together to strengthen the bilateral economic relationship. He called for replacing the “blame game” with cooperation as a means to fight organized crime. He also highlighted education reform in Mexico as a field in which the two countries can work together.

AS/COA President Susan Segal emphasized the benefit of banking reforms made in Mexico that allow for better economic management and a relatively consistent flow of foreign direct investment. This is not the time for the United States to engage in protectionism, the discussants agreed; diplomatic efforts should be made help to Mexico become more economically competitive through and beyond the financial crisis.

Organized Crime: A Transnational Problem

Panelists argued that media outlets fail to provide the proper context when covering organized crime in the border region. The U.S. press, in its recent reporting on the issue, has also fallen short in recognizing the progress made during the Mexican government’s crackdown on cartels. Moreover, coverage has fallen short in explaining the U.S. role—a source for arms and money laundering—in the violence.

Sarukhán highlighted several ways in which the two countries can and do work together to improve security. He pointed out that the United States inspects just 1 percent of all southbound traffic. Creating a broader and more flexible system for checkpoints would slow arms and drug trafficking by making it more difficult for smugglers to find out when cargo would be checked. The ambassador said the $1.4 billion, three-year program known as the Merida Initiative supports efforts to fight cartels through equipment, technology, and shared intelligence. The initiative thereby provides “added vitamins” in Mexico’s fight against the drug cartels.

Sarukhán warned of the “balloon effect” involved with combating drug smuggling in which, by squeezing the problem in one place, it moves to another. He gave the example of Argentina, where cartels have extended their reach by taking advantage of that countries’ lack of regulations on importing ephedrine and pseudoephedrine to set up drug labs. Anti-narcotics efforts should therefore be coordinated and hemispheric, argued the ambassador.

Jones warned that media coverage of drug violence could harm Mexico by affecting tourism and foreign direct investment. Thus far, tourism showed few signs of lagging based on January and February 2009 figures, pointed out Sarukhan. Segal also noted that emerging markets across the globe are experiencing a slowdown in capital flows as a result of the financial crisis, making it unclear whether Mexico may be economically affected by security concerns.

Conclusion

Participants agreed that Secretary of State Hillary Clinton’s trip could strengthen diplomatic ties with Mexico. They emphasized the need to invest in long-term infrastructure projects and expand security efforts to boost the bilateral relationship. Speakers were optimistic that Obama and Calderón will lead the countries to create a multifaceted partnership that will help overcome the economic downturn. 

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