"Is Our Marrige with Mexico Working" with Shannon K. O'Neil

I visited ZOCOLO Public Square at The RAND Corp. on Tuesday evening and was rapt by the presentation by Shannon O'Neil about the U.S. and Mexico relationship.  She has lived in Mexico off and on for nearly 20 years.  Her new book, "Two Nations Indivisible" outlines her premise that the two countries are in many ways symbiotic in their relationship especially since the North American Free Trade Agreement (NAFTA) in 1994.  She talked about the political and economic changes in the country, citing the ousting of the decades of political control of the P.R.I. and the rise of the middle class.

She said that in a recent return to Mexico City, with 20 million people, she could see the difference in the quality of the air, improved housing, and big box stores bringing affordable food and goods to the masses.  Our interdependence in manufacturing is seen in the multiple transfer of products from country to county until it is completed.  She said that Mexico is our most important trading partner because of this.  She said that 40% of a product labeled "Made in Mexico" may actually be made in the U.S.  The population has urbanized with 80% of Mexicans now living in cities. 

Regarding Mexican immigration, she said it now is a net zero due to the rising Mexican economy and border security.  However, there still is a brain drain with 50% of Mexican PhD's residing in the U.S. and 25% of the college grads.  "We have benefited from their best and brightest."  The remittances that Mexican-Americans send to their families in Mexico has helped to advance education for some and furthered economic investment in that country.

Although with the recent election the new president is from the P.R.I party, the politics have changed with the Mexican congress made of multiple parties.  This plus the stronger supreme court and a strong free media will check the strength of one party.

The main problem in Mexico is the continuing problem with corruption and violence.  This has slowed business development somewhat.  She visited the City of Juarez, the most violent city in Mexico, and was struck by the massive manufacturing plants there.  She said they need to get control of the underground violent elements just as the U.S. had to in our past.  She said the future of Mexico depends on this...whether they are pulled down by violence or whether they can develop into a first world country.

In summary, although the U.S. has many important trading partners, Mexico has become the most important to us on a day to day basis for both exporting and importing goods, interdependence of manufacturing and the integration of Mexican people in our society.