By R. Evan Ellis

With its 128 million people and GDP of $1.26 trillion, Mexico is strongly connected to the United States through geography, commerce, and family. What happens in Mexico directly affects the security and prosperity of the United States, and vice versa. Mexico, not China, is the United States’ largest trading partner, with $614 billion in bilateral commerce in 2019. That interchange is now reinforced by the implementation of the United States-Mexico-Canada-Agreement (USMCA), which feeds and is fed by enormous U.S. investment—$101 billion in 2019, according to the U.S. Department of Commerce. Those commercial ties sustain the presence of 1.5 million U.S. citizens living in Mexico. The performance of the Mexican economy, local conditions, and the effectiveness of its governance thus affect American jobs, investment, security, and lives. Beyond commerce, activities related to illegal drugs—ranging from the movement of cocaine to the production of opioids and synthetics to the distribution of fentanyl (although originating in China)—involve, at least in part, Mexico-based drug gangs and Mexican territory, just as Mexicans are victimized by weapons illegally smuggled into the country from the United States. The United States depends substantially on the efforts by and cooperation with the Mexican military and law enforcement to help combat narcotraffickers and organized crime in all of its forms.

Washington, DC: Center for Strategic and International Studies, 2020. 11p.