U.S.-Mexico Economic Relations: Trends, Issues, and Implications [April 20, 2015] [open pdf - 523KB]
"The economic and trade relationship with Mexico is of interest to U.S. policy makers because of Mexico's proximity to the United States, the high level of bilateral trade, and the strong cultural and economic ties that connect the two countries. Also, it is of national interest for the United States to have a prosperous and democratic Mexico as a neighboring country. Mexico is the United States' third-largest trading partner, while the United States is, by far, Mexico's largest trading partner. Mexico ranks third as a source of U.S. imports, after China and Canada, and second, after Canada, as an export market for U.S. goods and services. The United States is the largest source of foreign direct investment (FDI) in Mexico. The United States and Mexico have strong economic ties through the North American Free Trade Agreement (NAFTA), which has been in effect since 1994. […] In June 2012, Mexico and Canada joined negotiations for the proposed TPP [Trans-Pacific Partnership]. If approved, the agreement would likely enhance the economic links Mexico already has with the United States and Canada under NAFTA. Policy makers may consider how a TPP would affect the U.S.-Mexico trade and investment relationship under NAFTA. Although nearly all U.S. trade with Mexico is now conducted duty and barrier free under NAFTA, the TPP negotiations may provide a venue for addressing issues that are not covered under the agreement. If approved, a TPP would not render NAFTA obsolete, but it could alter certain rules governing U.S.-Mexico trade since NAFTA entered into force. A TPP may have implications in several areas, including intellectual property rights protection, investment, state-owned enterprises, services trade, agriculture, government procurement, worker rights, and the environment." This report is supplemented by multiple charts and graphs displaying financial relationships between the three countries.
CRS Report for Congress, RL32934