NEW PUBLICATION | Growing Together: How Trade with Mexico Impacts Employment in the United States

growing-together-employment-sectionBy Christopher Wilson

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The United States and Mexico trade over a half-trillion dollars in goods and services each year, which amounts to more than a million dollars in bilateral commerce every minute.  With such a large volume of trade, it is not hard to believe that the number of jobs that depend on the bilateral relationship is similarly impressive. New research by the Mexico Institute shows precisely that: nearly five million U.S. jobs depend on trade with Mexico.

The study shows that if trade between the United States and Mexico were halted, 4.9 million Americans from across the country would be out of work.

This essay analyzes the employment impact of bilateral trade on the U.S. economy. Read the essay here.

Key Findings

  • Nearly five million U.S. jobs depend on trade with Mexico… Our model shows that if trade between the United States and Mexico were halted, 4.9 million Americans would be out of work.
  • Many times, it is the availability of cost-efficient inputs that allows U.S. companies to stay competitive enough to fend off competitors from outside the region and to grow exports in the face of fierce global competition. In this way, not just exports but also imports from Mexico help support jobs in U.S. industry.
  • The auto industry, which is probably the single most integrated regional industry, is a perfect example of the benefits of trade integration. Without the availability of nearby Mexican plants to do the final assembly of light vehicles, it is quite possible that the vast U.S. parts producing network for these vehicles would migrate to someplace outside of the continent.
  • Misperception and scapegoating has certainly played a role in creating the current negative political environment around trade…but so has the very real failure of U.S. policymakers to adequately address the challenges facing middle-class Americans.

This essay is part of our project Growing Together: Economic Ties between the United States and Mexico, which explores the bilateral relationship in detail to understand its nature and its impact on the United States. Throughout the fall of 2016, the Mexico Institute will release the findings of our research on our website and social media, using the hashtag #USMXEcon.

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NEW PUBLICATION | Bilingual, Bicultural, Not Yet Binational: Undocumented Immigrant Youth in Mexico & the United States

jill-anderson-coverBy Jill Anderson

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An entire generation of children, adolescents and young adults has been caught in the crucible of increasing criminalization of immigrants coupled with neoliberal globalization policies in Mexico and the United States. These are first- and second-generation immigrant youth who are bicultural, often bilingual, but rarely recognized as binational citizens in either of their countries. Since 2005, an estimated two million Mexicans have returned to Mexico after having lived in the United States, including over 500,000 U.S.-born children. As of 2005, the population of Mexican-origin immigrant youth in the United States (first- and second-generation) reached an estimated 6.9 million. They have come of age in conditions of extreme vulnerability due to their undocumented status or the undocumented status of their parents.

The challenges that immigrant youth face in the aftermath of deportation and return are varied. Emotional distress, post-traumatic stress syndrome, depression and alienation are commonly described as key factors during the first months to years of return. These young people have experienced family separation, a sense of alienation, and human rights violations during detention and deportation. Systemic and inter-personal discrimination against deportees and migrants among the non-migrant population in Mexico can make an already challenging situation more difficult. For some, an accent, a lack of language proficiency in Spanish, and/or tattoos make it difficult to “blend in,” find jobs, or continue their studies. In addition to emotional and socio-cultural stress, there are also facing systemic educational, employment and political barriers to local integration and stability.

This paper examines the phenomenon of binational immigrant youth and, in the interest of constructing a binational agenda that privileges the human security and socio-economic integration of immigrant youth in the United States and Mexico in the short- and long-term, proposes a list of binational public policy recommendations.

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FACT SHEET: United States-Mexico Relations

07/22/2016 White House

mexico-usa-flag-montageThe President hosted President Enrique Pena Nieto of Mexico on July 22.  Mexico is one of the United States’ closest and most valued partners.  Our countries are economically entwined.  Mexico is our third largest trading partner, and on any given day more than $1.5 billion in bilateral trade crosses our border.  We are working together to enhance our shared security by combatting drug trafficking and transnational criminal organizations.  The United States and Mexico partner regionally and globally, including to address Zika and other vector-borne diseases, provide support for refugees and protect the environment and promote clean energy.  Today, the Presidents reaffirmed the close economic ties, took steps to ensure easier, safer facilitation of people and goods across our border, and enhanced our environmental, health, and security cooperation.  They proved, in short, that we are stronger together.

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New US-Mexico Bilateral Agenda Mechanisms

07/22/2017 Gob.mx

us mex flagThe mechanisms of the New Agenda have made it possible to align the efforts of both countries to find binational solutions to the economic challenges we face.

Mexico and the United States promote a vision of shared responsibility at the border, as well as a new cooperation agenda for modernizing border infrastructure and promoting the welfare of the binational community of the ten border states, whose combined economies represent the fourth largest economy in the world.

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Mexico has a master plan to increase its competitiveness through greater connectivity: Enrique Peña Nieto

07/22/2016 Gob.mx

Mexico Bricks57 of the 80 federal highways, with a length of 2,000 kilometers, have been modernized or expanded, and inaugurated.

  • Road works do not arise spontaneously; they are part of a plan to define what will allow our country to continue to grow and drive its development, he said.
  • 28,000 kilometers of rural roads have been built during this administration, he said.
  • In the State of Mexico, he inaugurated the Ecatepec-Santa Clara stretch of the Mexico-Pachuca highway and the Toluca-La Marquesa stretch of the Mexico-Toluca road.
  • He celebrated his 50th birthday inaugurating infrastructure projects and meeting commitments.

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Mexico & the United States: Let’s Build Prosperity & Security

By Earl Anthony Wayne and Sergio M. Alcocer

12642332434_f5a427c4ea_zPresident Obama will receive Mexico’s President Enrique Peña Nieto July 22 in Washington.  This is a critical opportunity to highlight the importance of U.S.-Mexico ties, to underscore the substantial progress in cooperation, and to accentuate how the campaign rhetoric in the United States is out of tune with the reality of relations.  With the U.S. election approaching, it is crucial to take steps to preserve the unprecedented U.S.-Mexico collaboration that exists today.

U.S.-Mexico relations touch the daily lives of more citizens of both countries than do ties with any other country in the world.  Over 30 million U.S. citizens of Mexican heritage, our interconnected economies, the 1,990-mile border and our shared environment link us uniquely.  The two governments have established a comprehensive network of mechanisms that put bilateral relations in the best place they have been in memory.  Officials work together to take advantage of mutual opportunities and to solve shared problems across a wide spectrum of issues, with input from “stakeholders” in the relationship.

There is still a lot of serious work to do to address the problems out there and to take advantage of the opportunities of the region.   Each government has experienced professional ambassadors and teams in place to help guide the work during the U.S. leadership transition.  But, simplistic explanations of the problems or solutions distract us from the good work underway and the hard work still needed to deal with the serious challenges ahead.  As the United States prepares for a presidential transition, the two countries should solidify the mechanisms and engagements that are doing the hard, policy and technical work of enhancing both of our nations’ economic and national security.  These include the High-Level Economic Dialogue (HLED), the 21st Century Border process, the bilateral Security Coordination Group, and the Bilateral Forum on Higher Education, Innovation and Research (FOBESSII).  The U.S.-Mexico relationship is too important for both countries not to continue this work.

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Mexico Institute Materials on Anti-Corruption Efforts

Security and the Rule of LawOn Monday, as President Enrique Peña Nieto signed into law a new anti-corruption system, he apologized for a damaging conflict of interest scandal in 2014 surrounding his wife’s purchase of a $7m luxury home from a government contractor, an episode that hurt the Mexican people’s faith in the presidency and the government. “For this reason, with all humility I ask your forgiveness,” he said. “I reiterate my sincere and profound apology for the offense and indignation I have caused you.”

In light of the ratification of the anti-corruption reform, I would like to share with you our recent work on anti-corruption efforts in Mexico.

Sincerely,

Duncan Wood
Director, Mexico Institute

Anti-Corruption

Mexico Wins: Anti-Corruption Reform Approved

Fighting Corruption in Mexico

Mexico Today: Analyzing the Country’s Reforms

Mexico’s Reforms and the Prospects for Growth

Mexican Civil Society’s Battle against Corruption: #Ley3de3

Mexico: The Fight Against Corruption

How to Make Mexico More Competitive: More Corporate Ethics & State Efficiency, Less Corruption

Mexico’s Battle Against Corruption

Mexico Corruption Perception Index 2015

Corruption, A Central Issue in the Campaigns

The Mexican State and Anti-Corruption Efforts

Additionally, check out our recent work on rule of law in Mexico.

The Problem of Power: Mexico Requires a New System of Government

Book Launch | The Problem of Power: Mexico Requires a New System of Government

Mexico and the United States: Combating Illicit Finance Together

Mexico Security Review 2016: Assessing the Outlook for the Rule of Law

A Mexican Utopia: Book Launch & Discussion of the Rule of Law in Mexico

A Mexican Utopia: The Rule of Law is Possible

A Way to Restore Mexico’s Trust Deficit

Four Rule of Law Policies to Make Mexico Grow

The Mexican State and Transparency

The State of Citizen Security in Mexico: 2014 in Review and the Year Ahead

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