Home The Classroom The Library The Caribbean Mexico & Central America South America International Treaties

Mexico


click for full size map


Backgound Notes Geography History

Government Business Law Commercial Guide

Treaties Labor Law Environmental Law

Banking & Finance Visas & Immigration Foreign Investment

Intellectual Property Taxes General Economic Info

Tourism Legal System General Information

Importing & Exporting Marketing


Background Notes For Mexico

Background Notes: Mexico, August 1998

Released by the Bureau of Inter-American Affairs

U.S. Department of State

OFFICIAL NAME: United Mexican States

PROFILE

Geography

Area: 1,972,500 sq. km. (761,600 sq. mi.); about three times the size of Texas.

Cities: Capital--Mexico City (15 million, 1990 census). Other cities--Guadalajara, Monterrey, Puebla, Leon.

Terrain: Coastal lowlands, central high plateaus, and mountains up to 5,400 m. (18,000 ft.).

Climate: Tropical to desert.

Maps of Mexico:

Map 1 (306KB, 1248x1010) .gif

Map 2 (306KB, 1396x1274) .jpg

The States of Mexico

This site provides basic information about the states of Mexico.

People

Nationality: Noun and adjective--Mexican(s).

Population (1997 est.): 95 million.

Annual growth rate (net): 1.8%.

Ethnic groups: Indian-Spanish (mestizo) 60%, Indian 30%, Caucasian 9%, other 1%.

Religions: Roman Catholic 89%, Protestant 6%, other 5%.

Language: Spanish.

Education: Years compulsory--12. Literacy--89%.

Health (1996 est.): Infant mortality rate--30/1,000. Life expectancy--male 70 yrs., female 76 yrs.

Labor force (1996, 35 million): Agriculture, forestry, hunting, fishing--26%. Services--24%. Commerce--24%. Manufacturing--15%. Construction--6%. Transportation and communication--4%. Mining and quarrying--1%.

Government

Type: Federal republic.

Independence: First proclaimed September 16, 1810; republic established 1824.

Constitution: February 5, 1917.

Branches: Executive--president (chief of state and head of government).

Legislative--bicameral. Judicial--Supreme Court, local and federal systems.

Administrative subdivisions: 31 states and a federal district.

Political parties: Institutional Revolutionary Party (PRI), National Action Party (PAN), Party of the Democratic Revolution (PRD), Green Ecological Party (PVEM), Labor Party (PT), and several small parties.

Suffrage: Universal at 18.

Economy

GDP (1997): $415 billion.

Per capita GDP (1997): $4,360.

Annual real GDP growth: 1997, 7%; 1996, 5.1%; 1995, -6.2%.

Avg. annual real GDP growth (1993-97): 2.04%.

Inflation rate (1997 est.): 16%; 1996, 28%.

Natural resources: Petroleum, silver, copper, gold, lead, zinc, natural gas, timber.

Agriculture (5.6% of GDP): Products--corn, beans, oilseeds, feedgrains, fruit, cotton, coffee, sugarcane, winter vegetables.

Industry (26% of GDP): Types--manufacturing (19.1%), petroleum and mining.

Services (62.9% of GDP): Types--personal services (19.7%), commerce and tourism (18.9%), financial services (14.8%), transportation and communications (9.5%).

Trade (1997, Bank of Mexico): Merchandise exports--$110.3 billion: manufacturing 86%, petroleum and derivatives 10%, agriculture 3%, other 1%. Major markets--U.S. (85%), Europe (4%), South America (3%), Canada (2%). Imports--$109.8 billion: intermediate goods 80%, capital goods 10%, consumer goods 7%, other 3%. Major sources--U.S. (77%), Europe (9%), Japan (5%), Canada (2%). Imports from U.S.--$71.4 billion. Exports to U.S.--$87.1 billion (1997, U.S. Department of Commerce).

Average exchange rate (1998): 7.951 pesos=U.S.$1.

PEOPLE

Mexico is the most populous Spanish-speaking country in the world and the second most-populous country in Latin America after Portuguese-speaking Brazil. About 70% of the people live in urban areas. Many Mexicans emigrate from rural areas that lack job opportunities--such as the underdeveloped southern states and the crowded central plateau--to the industrialized urban centers and the developing areas along the U.S.-Mexico border. According to some estimates, the population of the area around Mexico City is about 20 million, which would make it the largest concentration of population in the world. Cities bordering on the United States, such as Tijuana and Ciudad Juarez, and cities in the interior, such as Guadalajara, Monterrey, and Puebla, have undergone sharp rises in population.

HISTORY

Highly advanced cultures, including those of the Olmecs, Mayas, Toltecs, and Aztecs, existed long before the Spanish conquest. Hernando Cortes conquered Mexico during the period 1519-21 and founded a Spanish colony that lasted nearly 300 years. Independence from Spain was proclaimed by Father Miguel Hidalgo on September 16, 1810; this launched a war for independence. An 1821 treaty recognized Mexican independence from Spain and called for a constitutional monarchy. The planned monarchy failed; a republic was proclaimed in December 1822 and established in 1824.

Prominent figures in Mexico's war for independence were Father Jose Maria Morelos; Gen. Augustin de Iturbide, who defeated the Spaniards and ruled as Mexican emperor from 1822-23; and Gen. Antonio Lopez de Santa Ana, who went on to control Mexican politics from 1833 to 1855.

Santa Ana was Mexico's leader during the conflict with Texas, which declared itself independent from Mexico in 1836, and during Mexico's war with the United States (1846-48). The presidential terms of Benito Juarez (1858-71) were interrupted by the Hapsburg monarchy's rule of Mexico (1864-1867). Archduke Maximilian of Austria, whom Napoleon III of France established as Emperor of Mexico, was deposed by Juarez and executed in 1867. General Porfirio Diaz was President during most of the period between 1877 and 1911.

Mexico's severe social and economic problems erupted in a revolution that lasted from 1910-20 and gave rise to the 1917 constitution. Prominent leaders in this period--some of whom were rivals for power--were Francisco I. Madero, Venustiano Carranza, Pancho Villa, Alvaro Obregon, Victoriano Huerta, and Emiliano Zapata. The Institutional Revolutionary Party (PRI), formed in 1929 under a different name, continues to be the most important political force in the nation. It emerged as a coalition of interests after the chaos of the Revolution as a vehicle for keeping political competition in peaceful channels. For almost 70 years, Mexico's national government has been controlled by the PRI, which has won every presidential race and most gubernatorial races.

GOVERNMENT

The 1917 constitution provides for a federal republic with powers separated into independent executive, legislative, and judicial branches. In practice, the executive is the dominant branch, with power vested in the president, who promulgates and executes the laws of the Congress. The president also legislates by executive decree in certain economic and financial fields, using powers delegated from the Congress. The president is elected by universal adult suffrage for a 6-year term and may not hold office a second time. There is no vice president; in the event of the removal or death of the president, a provisional president is elected by the Congress.

The Congress is composed of a Senate and a Chamber of Deputies. Consecutive re-election is prohibited. Senators are elected to 6-year terms. Implementing constitutional changes made in 1996, for the first time in the July 1997 elections, 32 of the 128 Senate seats were proportionally elected from national party lists. The 32 Senators elected in 1997 will only serve 3-year terms, in order to bring the entire Senate back into the same cycle in the year 2000. Deputies serve 3-year terms. In the lower chamber, 300 deputies are directly elected to represent single-member districts, and 200 are selected by a modified form of proportional representation from five electoral regions created for this purpose across the country. The 200 proportional representation seats were created to help smaller parties gain access to the Chamber.

The judiciary is divided into federal and state court systems, with federal courts having jurisdiction over most civil cases and those involving major felonies. Under the constitution, trial and sentencing must be completed within 12 months of arrest for crimes that would carry at least a 2-year sentence. Practice often does not meet this requirement. Trial is by judge, not jury, in most criminal cases. Defendants have a right to counsel, and public defenders are available. Other rights include defense against self-incrimination, the right to confront one's accusers, and the right to a public trial. Supreme Court Justices are appointed by the President and approved by the Senate.

National Security

Mexico's armed forces in 1995 numbered about 175,000. The army makes up about three-fourths of the total. One year of limited training is required of all males at age 18. Principal military roles include national defense, narcotics control, and civic action assignments such as road-building, search and rescue, and disaster relief.

Principal Government Officials

President--Ernesto ZEDILLO Ponce de Leon

Foreign Minister--Rosario GREEN Macias

Ambassador to the U.S.--Jesus REYES HEROLES

Ambassador to the United Nations--Manuel TELLO Macias

Ambassador to the OAS--Claude HELLER Roussant

Mexico maintains an embassy in the United States at 1911 Pennsylvania Ave. NW, Washington, DC 20006 (tel. 202-728-1600). Consular offices are located at 2827 16th St. NW, 20009 (tel. 202-736-1012), and the trade office is co-located at the embassy (tel. 202-728-1686).

Consulates general are located in Chicago, Dallas, Denver, El Paso, Houston, Los Angeles, Miami, New Orleans, New York, San Antonio, San Diego, and San Francisco; consulates are (partial listing) in Atlanta, Boston, Detroit, Philadelphia, Seattle, St. Louis, and Tucson.

POLITICAL CONDITIONS

Ernesto Zedillo Ponce de Leon was sworn in on December 1, 1994, as the President of Mexico. A trained economist with degrees from Yale, Zedillo served as Secretary of Programming and Budget and Secretary of Education in the Salinas administration prior to being elected.

President Zedillo continued the process already underway of opening Mexico's political system, reforming the justice system, curtailing corruption, strengthening the fight against narcotics trafficking, and furthering Mexico's market-oriented economic policies. A severe financial crisis occupied much of the Zedillo administration's attention in 1995-96, creating a need for difficult emergency economic stabilization policies and intensified longer-term economic restructuring.

Political Scene

Unexpected and traumatic events in early 1994 convulsed the Mexican political scene. In January 1994, peasants in the state of Chiapas briefly took up arms against the government, protesting alleged oppression and governmental indifference to poverty. After nearly 2 weeks of fighting, clashes were halted by a cease-fire that remains in effect. The government and the Zapatista Army of National Liberation (EZLN) have negotiated on topics such as granting greater autonomy to indigenous people since then, although the partial accords that were reached have not been implemented.

Following the massacre of 45 indigenous peasants in Acteal, Chiapas in December 1997, tensions in the state increased and pressures for a negotiated settlement were renewed. Draft legislation to change the Mexican Constitution's provisions on indigenous rights has been introduced in the Mexican Congress. Government attempts to re-engage the EZLN in direct talks have so far been unsuccessful. In March 1994, PRI presidential candidate Luis Donaldo Colosio was assassinated. In September 1994, PRI Secretary General Jose Francisco Ruiz Massieu was also assassinated. Although the gunmen in both murders and co-conspirators in the Ruiz Massieu murder were tried and convicted, the Mexican public is not satisfied that all the truth behind these crimes has been uncovered. A flurry of public scandals followed in 1995 regarding supposed attempts at obstruction of justice and allegations of major corruption in police, judicial, military, and other authorities, as well as big business, including allegations of ties to narcotics trafficking. The atmosphere of scandal around former President Carlos Salinas has turned him into something of an arch-villain in the popular mind.

A new group of uncertain origin and size, the Popular Revolutionary Army (EPR), made its appearance in southern Mexico on June 28, 1996. The government considers the EPR a terrorist organization and has vowed to bring the group to justice. After a period of inactivity following mid-term elections in July 1997, the EPR has, in the summer of 1998, again begun engaging in small-scale actions in the southern state of Guerrero.

Recent Elections and Electoral Reform

A record 78% of registered voters cast ballots in the 1994 presidential election. Election officials declared Zedillo of the PRI the winner with 49% of the vote, followed by National Action Party (PAN) candidate Diego Fernandez de Cevallos with 26% and Cuauhtemoc Cardenas of the Party of the Democratic Revolution (PRD) with 17%. Despite isolated incidents of irregularities and problems, there was no evidence of systematic attempts to manipulate the elections or their results, and critics concluded that the irregularities which did occur did not alter the outcome of the presidential vote. Civic organizations fielded more than 80,000 trained electoral observers; foreigners--many from the United States--were invited to witness the process, and numerous independent "quick count" operations and exit polls validated the official vote tabulation.

Numerous electoral reforms implemented since 1989 have aided in the opening of the Mexican political system, and opposition parties have made historic gains in elections at all levels. Most of the concerns shifted from fraud to campaign fairness issues. During 1995-96 the political parties negotiated constitutional amendments to address these issues. Implementing legislation included major points of consensus that had been worked out with the opposition parties. The thrust of the new laws is to have public financing predominate over private contributions to political parties, to tighten procedures for auditing the political parties, and to strengthen the authority and independence of electoral institutions. The court system was also given greatly expanded authority to hear civil rights cases on electoral matters brought by individuals or groups. In short, a serious effort was made to "level the playing field" for the parties.

Even before the new electoral law was passed, opposition parties had obtained an increasing voice in Mexico's political system. A substantial number of candidates from opposition parties won election to the Chamber of Deputies and Senate. Many municipalities were governed by opposition mayors, and the PAN won the governorships of four states.

Mid-term elections held July 6, 1997, saw large gains for opposition parties and marked a significant step in Mexico's political transformation. For the first time in its 68-year history, the PRI lost its absolute majority in the Chamber of Deputies. The opposition majority is split among four parties: the PRD, the PAN and two small parties, the Labor Party (PT), and the Green Ecological Party (PVEM). The opposition also gained ground in the Senate, where the PRI still retains an overall majority but fell below the two-thirds majority needed on constitutional amendment questions.

In another important electoral development, the PRD candidate, Cuauhtemoc Cardenas, won the first modern election for mayor of Mexico City (this post was previously appointed by the Mexican president). In state elections, the PAN won two additional governorships, giving it a total of six. More than 50% of Mexico's population is now governed by an opposition party at the state or municipal level.

State-level elections held through August 1998 have tended to confirm the increasing political pluralism in Mexico. While the PRI regained the governorship of one state from the PAN and held on to several others, the PAN won the state house in yet another state for the first time. A PRD candidate also won a gubernatorial election for the first time.

Other Reforms

To help reorganize the Mexican justice system, President Zedillo appointed as Attorney General a respected member of the opposition PAN party, the first time an opposition member has held a cabinet post in Mexico. However, Attorney General Antonio Lozano was dismissed in late 1996 amid controversy regarding investigations into prominent murder and corruption cases. Constitutional and legal changes were adopted to improve the performance and accountability of the Supreme Court and the Office of the Attorney General and the administration of federal courts. The Supreme Court, relieved of administrative duties for lower courts, was given responsibilities for judicial review of certain categories of law and legislation. A variety of laws was also passed in 1995-96 to help control organized crime.

Although the constitution provides for three branches of government, the Mexican presidency traditionally occupies a dominant position. In order to overcome this "presidentialism," the Zedillo administration has sought to develop a greater role for the Congress, notably by inviting the participation of a multi-party legislative commission in the Chiapas peace negotiations and seeking congressional approval of the financial assistance package signed by the U.S. and Mexico in February 1995. Congress' role as a co-equal balance to the Executive also received a boost after the July 1997 increase in opposition strength to control a majority in the Chamber of Deputies. The judicial reforms mentioned above are in part designed to allow the judicial branch of government to become a more effective counter-weight to the other two branches. The Zedillo administration has also promoted a "New Federalism" to devolve more power to state and local governments, starting with pilot programs in education and health.

Education

Although educational levels in Mexico have improved substantially in recent decades, the country still faces daunting problems. Education is one of the Government of Mexico's highest priorities and it has increased the education budget 7.2% over 1996 to $15 billion for 1997--one-fourth of the total budget. Education in Mexico is also being decentralized from federal to state authority in order to improve accountability.

Education is mandatory from ages 6 through 18. The increase in school enrollments during the past two decades has been dramatic. By 1994, an estimated 59% of the population between the ages of 6 and 18 were enrolled in school. Primary (including preschool) enrollment in public schools from 1970 through 1994 increased from less than 10 million to 17.5 million. Enrollment at the secondary public school level rose from 1.4 million in 1972 to as many as 4.5 million in 1994. A rapid rise also occurred in higher education. Between 1959 and 1994, college enrollments rose from 62,000 to more than 1.2 million. Although education spending has risen dramatically, given increased enrollment, a net decline occurred in per student expenditures. The Mexican Government concedes that despite this progress, 2 million children still do not have access to basic education, and hopes to provide access to half of those children by the year 2000.

ECONOMY

Sustained economic growth is vital to Mexico's prospects for a successful evolution to a more competitive democracy. Mexico's level of economic prosperity has a direct, though proportionally smaller impact on the U.S. as it affects trade and migration. In recent years, Mexico has sought economic prosperity through liberalization of its trade regime. In January 1994, Mexico joined Canada and the United States in the North American Free Trade Agreement (NAFTA), which will phase out all tariffs over a 15-year period. Four months later, in April 1994, Mexico joined the Organization for Economic Cooperation and Development (OECD). Mexico was the first Latin American member of the Asia-Pacific Economic Cooperation forum (APEC), joining in 1993, and in January 1996, became a founding member of the World Trade Organization (WTO). Mexico's NAFTA membership helped the Mexican economy grow by 3.5% in 1994. Following the December 1994 devaluation of the peso, however, Mexico experienced a severe financial crisis that also threatened the stability of other emerging market economies, especially in Latin America.

The United States responded by leading a group of international lenders in making available to Mexico over $40 billion in international financial assistance, including $20 billion from the United States. This action helped stabilize the Mexican economy, allowing Mexico to repay the loans to the United States more than 3 years ahead of schedule and with $580 million in interest.

In 1996, Mexico's economy grew over 5%, recovering from the recession more briskly than anticipated. Inflation fell, unemployment fell, and the peso stabilized. Mexican real GDP grew about 7% in 1997.

Although the 1995 recession was severe, with real GDP falling 6.2%, tough stabilization measures averted an even more serious collapse and brought about a rapid recovery. NAFTA contributed to the process of adjustment by enabling Mexico to reduce its current account deficit through increased exports rather than through slashing imports from the United States, as it had following the 1982 debt crisis.

Trade

Mexico was the United States' third-ranked trading partner in 1997, accounting for 10% of U.S. trade. In 1997, $71.4 billion in merchandise exports to Mexico surpassed our exports to Japan, making Mexico our second-most important export market, even though the Mexican economy is just one-seventh the size of Japan's. The United States was Mexico's predominant trading partner, accounting for 85% of Mexican exports and 77% of Mexican imports. The chief U.S. exports to Mexico were motor vehicle parts, electronic equipment, and agricultural products; the top imports from Mexico included petroleum, motor vehicles, and electronic equipment. The United States in 1996 was the source of 60% of all direct foreign investment in Mexico.

U.S.-Mexico trade increased during NAFTA's first 4 years. In 1997, U.S. exports to Mexico were up 72% and U.S. imports from Mexico were up 118% over 1993 levels. Our trade balance with Mexico shifted from surplus to deficit in 1995 when strong growth in U.S. demand, along with the Mexican recession and devaluation of the peso, increased U.S. imports from Mexico while slowing growth in U.S. exports. Our bilateral trade deficit began to shrink in 1997 as the Mexican recovery gathered steam.

NAFTA eliminates restrictions on the flow of goods, services, and investment in North America. In addition to phasing out tariffs, NAFTA eliminates, as far as possible, non-tariff barriers and promotes safeguards for intellectual property rights-patents, copyrights, and trademarks. The pact also includes provisions on trade rules and dispute settlement, and its parallel labor agreement seeks to ensure full protection of workers' rights.

Through its supplemental environmental cooperation agreement, NAFTA marked the first time in the history of U.S. trade policy that environmental concerns have been addressed in a comprehensive trade agreement. The pact also serves as a basis for enhancing ongoing U.S.-Mexico cooperation on a host of other issues that do not respect national borders.

Agriculture

Mexico's agrarian reform program began in 1917, when the government began distribution of land to farmers. Extended further in the 1930s, this cooperative agrarian reform, which guaranteed small farmers a means of subsistence livelihood, also caused land fragmentation and lack of capital investment, since commonly held land could not be used as collateral. This, combined with poor soil, several recent years of low rainfall, and rural population growth, has made it difficult to raise the productivity and living standards of Mexico's subsistence farmers.

Mexico's agricultural sector continues to experience heavy debt problems, even as the government seeks to foster a shift to a market-oriented and competitive farming industry. High interest rates for loans have compounded the difficulty for producers, and the 1994 peso crisis exacerbated the decline in productivity. Agriculture accounted for 5.3% of GDP in 1997.

In an effort to raise rural productivity and living standards, Article 27 of the Mexican Constitution was amended in 1992 to allow for the transfer of communal land to the farmers cultivating it. They then could rent or sell it, opening the way for larger farms and economies of scale. By early 1996, however, only six farmers' cooperatives had voted to disincorporate. Since communal land use is formally reviewed only every 2 years, privatization of these communal lands may continue to be very slow.

In the past, the government encouraged production of basic crops such as corn and beans by maintaining support prices. In order to rationalize its agricultural sector, Mexico is phasing out its support price scheme. Corn production dropped in 1995 and 1996 as more was imported. The government in 1996 crafted federal-to-state agreements targeted at each states' most urgent needs, with the goal of increasing the use of modern equipment and technology in order to increase per-acre productivity.

In addition to this new initiative, the government is continuing PROCAMPO, the rural support program which provides the approximately 3.5 million farmers who produce basic commodities--about 64% of all farmers--with a fixed payment per hectare of cropland.

Manufacturing and Foreign Investment

Mexico's manufacturing sector in the first 9 months of 1997 accounted for 19% of Mexico's GDP and 15% of employment. Manufacturing grew at a 10% annual rate through September 1997 after growing about 11% in 1996. Manufacturing declined 5% during Mexico's recession in 1995.

The industrial sector as a whole, which along with manufacturing includes construction, electricity, and mining, grew at a better than 9% rate in 1997, after 10% growth in 1996, which followed a drop of 8% in 1995. Construction grew at an 11% rate in early 1997; it had rebounded with 11% 1996 growth after declining 23% in 1996.

In December 1993, Mexico passed a new foreign investment law which promotes competitiveness and established clear rules for the entry of international capital into productive activities. The law also permits foreigners to own non-residential property in the "restricted zones"--within 100 kilometers (62 miles) of the border and 50 kilometers of the coasts. Residential property in these zones still must be acquired via a trust through a Mexican financial institution. Total new direct foreign investment in 1995 was $7 billion, down from $11 billion in 1994. Direct foreign investment of at least $8 billion is widely expected to have taken place in 1996, although the final tallies have not been released.

Transportation and Communications

The Zedillo Administration is continuing the previous government's modernization of infrastructure and services, de-regulation and development of more efficient transport systems, and increased privatization. Mexico's land transportation network is one of the most extensive in Latin America. More than 4,000 kilometers (2,400 miles) of four-lane highway have been built through government concessions to private sector contractors since 1989. The 36,000 kilometers (22,000 miles) of government-owned railroads in Mexico are currently being privatized through sale of 50-year operating concessions. The Northeast railroad, Mexico's primary freight carrier, was privatized early in 1997 for $1.4 billion. Another significant section, the Northwest railroad, was privatized in June 1997 for $400 million.

Tampico and Veracruz, on the Gulf of Mexico, are Mexico's two primary seaports. Recognizing that the low productivity of Mexico's 79 ports poses a threat to trade development, the government has steadily been privatizing port operations to improve their efficiency.

A number of international airlines serve Mexico, with direct or connecting flights from most major cities in the United States, Canada, Europe, Japan, and Latin America. Most Mexican regional capitals and resorts have direct air service to Mexico City or the United States. Airport privatization, based on the successful experience with ports, is underway.

Mexico has taken significant steps to modernize its telecommunications system. A key element was the privatization in 1990 of the national telephone company, Telefonos de Mexico (TELMEX), which was sold to a consortium of Mexican investors, Southwestern Bell, and France Telcom. This privatization has meant an increased rate of infrastructure enhancement. In addition, eight regional companies are providing cellular telephone service to various parts of Mexico, resulting in a dramatic expansion of cellular telephone users. Two larger communications satellites have been ordered to replace the two now in use. The government has also opened the telecommunications sector to greater foreign investment. Competition in long-distance telecommunications service began in 1997, and competitors quickly gained a 30% share of the market.

FOREIGN RELATIONS

The Government of Mexico has sought to maintain its interests abroad and project its influence largely through moral persuasion. In particular, Mexico champions the principles of non-intervention and self-determination. In its efforts to revitalize its economy and open up to international competition, Mexico has sought closer relations with the U.S., Western Europe, and the Pacific Basin. While the United States and Mexico are often in agreement on foreign policy issues, some differences remain--in particular, relations with Cuba. The U.S. and Mexico agree on the ultimate goal of establishing a democratic, free-market regime in Cuba but disagree on tactics to reach that goal.

Mexico actively participates in several international organizations. It is a supporter of the United Nations and Organization of American States systems and also pursues its interests through a number of ad hoc international bodies. Mexico has been selective in its membership in other international organizations. It declined, for example, to become a member of the Organization of Petroleum Exporting Countries. Nevertheless, Mexico does seek to diversify its diplomatic and economic relations, as demonstrated by its accession to GATT in 1986; its joining APEC in 1993; becoming, in April 1994, the first Latin American member of the OECD; and a founding member of the World Trade Organization (WTO) in 1996. Mexico attended the 1994 Summit of the Americas, held in Miami, and managed coordination of the agenda item on education for the 1998 Summit of the Americas in Santiago.

U.S.-MEXICAN RELATIONS

U.S. relations with Mexico are as important and complex as with any country in the world. A stable, democratic, and economically prosperous Mexico is fundamental to U.S. interests. Our relations with Mexico have a direct impact on the lives and livelihoods of millions of Americans--whether the issue is trade and economic reform, drug control, migration, or the promotion of democracy. The U.S. and Mexico are partners in NAFTA, and enjoy a rapidly developing trade relationship.

The scope of U.S.-Mexican relations goes far beyond diplomatic and official contacts; it entails extensive commercial, cultural, and educational ties, as demonstrated by the annual figure of nearly 290 million legal crossings from Mexico to the United States. In addition, more than a half-million American citizens live in Mexico. More than 2,600 U.S. companies have operations there, and the U.S. accounts for 60% of all foreign direct investment in Mexico. Along the 2,000-mile shared border, state and local governments interact closely. Since 1981, the management of the broad array of U.S.-Mexico issues has been formalized in the U.S.-Mexico Binational Commission, composed of numerous U.S. cabinet members and their Mexican counterparts. The Commission holds annual plenary meetings, and many sub-groups meet during the course of the year to discuss trade and investment opportunities, financial cooperation, consular issues and migration, legal affairs and anti-narcotics cooperation, cultural relations, education, energy, border affairs, environment and natural resources, labor, agriculture, health, housing and urban development, transportation, fisheries, tourism, and science and technology. The Commission met most recently on June 10-11, 1998 in Washington, during which we signed new agreements on border affairs, the environment, public health, transportation safety, energy, education and cultural heritage.

A strong partnership with Mexico is critical to controlling the flow of illicit drugs into the United States. The U.S. has certified Mexico as fully cooperating in this effort based on an unprecedented level of cooperation on counternarcotics and Mexico's own initiatives in fighting drug trafficking. This is the best way to ensure that Mexico's cooperation and anti-drug efforts grow even stronger.

During 1996, the U.S. and Mexico established a High-Level Contact Group (HLCG) on narcotics control to explore joint solutions to the shared drug threat, to coordinate the full range of narcotics issues and to promote closer law enforcement coordination. President Zedillo formalized his government's commitment to counternarcotics cooperation with the United States by signing the "Declaration of the Mexican-U.S. Alliance Against Drugs" with President Clinton in May 1997. The binational alliance worked throughout 1997 to produce a "U.S.-Mexico Binational Drug Strategy," a document which contains 16 alliance objectives, ranging from drug shipment interdiction to extradition of drug traffickers. Following the controversy in 1998 over a U.S. money laundering investigation of Mexican banks and individuals (Operation Casablanca), the two governments agreed on procedures to improve communication and coordination in cases of sensitive law enforcement investigations.

Border and Environmental Affairs

Cooperation between the United States and Mexico along our 2,000-mile common border includes state and local problem-solving mechanisms, transportation planning, and institutions to address resource and environment issues. The Border Liaison Mechanism (BLM), established in 1993, provides a means for the rapid mobilization of civic and law enforcement officials in response to problems or incidents. Eight BLMs are chaired by U.S. and Mexican consuls in "border pair" cities. BLMs work to resolve problems such as accidental violation of sovereignty by law enforcement officials, charge of mistreatment of foreign nationals, and coordination of port security. As the number of people and the volume of cargo crossing the U.S.-Mexico border grows, so too does the need for coordinated infrastructure development. The multi-agency U.S.-Mexico Binational Group on Bridges and Border Crossings meets twice-yearly to improve the efficiency of existing crossings and coordinate planning for new ones. The Binational Group also conducts an annual "Border Walk" to gain a first-hand impression of how border crossings work.

The United States and Mexico have a long history of cooperation on environmental and natural resource issues, particularly in the border area, where there are serious environmental problems caused by rapid population growth, urbanization, and industrialization. Cooperative activities between the U.S. and Mexico take place under a number of agreements such as:

-- An 1889 convention establishing the International Boundary Commission, reconstituted by the Water Treaty of 1944 as the International Boundary and Water Commission, United States and Mexico (IBWC). The IBWC has settled many difficult U.S.-Mexico boundary and water problems, including the regularization of the Rio Grande near El Paso through the 1967 Chamizal settlement. The IBWC built the Bridge of the Americas (BOTA) as part of that settlement, and is now replacing this bridge, making it a model crossing between the U.S. and Mexico. The IBWC divides the use of international waters, builds and operates water conservation and flood control projects, and constructs and maintains boundary markers on the land boundary and on international bridges. In recent years, the IBWC has worked to resolve long-standing border sanitation problems, to monitor the quantity and quality of border groundwaters, and to address water delivery and sedimentation problems of the Colorado River.

-- A series of agreements on border health (since 1942), wildlife and migratory birds (since 1936), national parks, forests, marine and atmospheric resources.

-- The 1983 La Paz Agreement to protect and improve the border environment and Border XXI, a binational, interagency planning program, begun in 1996, to address environmental, natural resource, and environmental health concerns in the border area by identifying and addressing long-term objectives and goals into the 21st century.

-- The 1993 North American Agreement on Environmental Cooperation (NAAEC), creating the North American Commission on Environmental Cooperation under NAFTA by the U.S., Mexico, and Canada, to strengthen environmental laws and address common environmental concerns.

-- A November 1993 agreement between the U.S. and Mexico, also under NAFTA, establishing the Border Environment Cooperation Commission (BECC) which works with local communities to build or upgrade environmental infrastructure such as wastewater treatment plants, drinking water systems, and solid waste disposal facilities; and the North American Development Bank (NADBank), which leverages private sector capital to finance border environmental infrastructure projects certified by the BECC.

Principal U.S. Officials

Ambassador--Jeffrey Davidow

Deputy Chief of Mission--Charles H. Brayshaw

Minister-Counselor for Political Affairs--Valentino Martinez

Minister-Counselor for Economic Affairs--William Brew

Counselor for Labor Affairs--John Ritchie

Minister-Counselor for Public Affairs (USIS)--Donald R. Hamilton

Minister-Counselor for Consular Affairs--Thomas Furey

Consul General--Victor Abeyta

Counselor for Scientific and Technological Affairs--Larry Kerr

Counselor for Commercial Affairs--Kevin C. Brennan

The U.S. Embassy in Mexico is located at Paseo de la Reforma 305, 06500 Mexico, DF. U.S. Mailing Address: Box 3087, Laredo, Texas 78044-3087, Tel. (from the U.S.): (011)(52-5) 209-9100. The embassy and the 18 other U.S. Consulates General, Consulates, and consular agents provide a range of services to American students, tourists, business people, and residents throughout Mexico.

U.S. Consulates General and Consulates and Officials

Consulate General, Ciudad Juarez--James Ward

Address: Avenida Lopez Mateos 924-N, 32000 Ciudad Juarez, Chihuahua

Mailing Address: Box 10545, El Paso, Texas 79995-0545

Tel. (from the U.S.): (011)(52-16) 13-4048

Consulate General, Guadalajara--Danny B. Root

Address: Progreso 175, 44100, Guadalajara, Jalisco

Mailing Address: Box 3088, Laredo, Texas 78044-3088

Tel. (from the U.S.): (011)(52-38) 25-2998

Consulate General, Monterrey--Daniel Johnson

Address: Avenida Constitution 411, Poniente, 64000 Monterrey, Nuevo Leon

Mailing Address: Box 3098, Laredo, Texas 78044-3098

Tel. (from the U.S.): (011)(52-83) 45-2120

Consulate General, Tijuana--Nick Hahn

Address: Tapachula 96, 22420 Tijuana, Baja California Norte

Postal Address: P.O. Box 439039, San Diego, California 92143-9039

Tel. (from the U.S.): (011)(52-66) 81-7400

Consulate, Hermosillo--Sandra Salmon

Address: Calle Monterrey 141 Pte., 83260, Hermosillo, Sonora

Postal Address: Box 3598, Laredo, Texas 78044-3598

Tel. (from the U.S.): (011)(52-62) 17-2375

Consulate, Matamoros--George B. Kopf

Address: Ave. Primera 2002, 87330, Matamoros, Tamaulipas

Postal Address: Box 633, Brownsville, Texas 78522-0633

Tel. (from the U.S.): (011)(52-88) 12-4402

Consulate, Merida--David Ramos

Address: Paseo Montejo 453, 97000, Merida, Yucatan

Postal Address: Box 3087, Laredo, Texas 78044-3087

Tel. (from the U.S.): (011)(52-99) 25-5011

Consulate, Nuevo Laredo--Rufus R. Watkins

Address: Calle Allende 3330, Col. Jardin, 88260 Nuevo Laredo, Tamaulipas

Postal Address: Box 3089, Laredo, Texas 78044-3089

Tel. (from the U.S.): (011)(52-87) 14-0512

Consular Agents

Acapulco--Joyce Anderson

Address: Hotel Acapulco Continental, Costera M. Aleman 121-Local 14

39580 Acapulco, Guerrero

Tel. (from the U.S.): (011)(52-74)84-0300 or 69-0556 or 69-0505

Cabo San Lucas--Michael John Houston (to be confirmed)

Address: Blvd. Marina y Pedregal 1, Local No. 3, Zona Centro

Cabo San Lucas, Baja California Sur

Tel. (from the U.S.): (011)(52-114)3-3566

Cancun--Carol Butler

Address: Plaza Caracol 2, #320-323, Blvd. Kukulkan, Km. 8.5 Zona Hotelera

77500 Cancun, Quintana Roo

Tel. (from the U.S.): (011)(52-98)83-0272

Ixtapa/Zihuatanejo--Elizabeth Williams

Address: Local 9, Plaza Ambiente, Ixtapa, Guerrero

Home Address: Paseo de los Hujes s/n, Esq. Palo de Arco, Col. El Hujal

40880 Zihuatanejo, Guerrero

Tel. (from the U.S.): (011)(52-755)311-08 or 426-06

Mazatlan--Geri Nelson Gallardo

Address: Hotel Playa Mazatlan, Rodolfo T. Loaiza 202, Zona Dorada

82110 Mazatlan, Sinaloa

Tel. (from the U.S.): (011)(52-69)13-4444, ext. 285 or 16-5889

Oaxaca--Mark A. Leyes

Address: Alcala 201 Desp. 206

68000 Oaxaca, Oaxaca

Tel. (from the U.S.): (011)(52-951)4-3054

Puerto Vallarta--Laura Holmstrom

Address: Edificio Vallarta, Plaza, Zaragoza 160, Piso 2, Int. 18

Puerto Vallarta, Jalisco

Tel. (from the U.S.): (011)(52-322)2-0069

San Luis Potosi--Kathleen C. Reza

Address: Francisco de P. Mariel 103, Esq. con V. Carranza, Despacho 1

San Luis Potosi, San Luis Potosi

Tel. (from the U.S.): (011)(52-48)12-1528

San Miguel de Allende--Philip Maher

Address: Dr. Hernandez Macias 72

37700 San Miguel de Allende, Guanajuato

Tel. (from the U.S.): (011)(52-415)2-2357

OTHER CONTACT INFORMATION:

American Chamber of Commerce of Mexico

A.C. Lucerna 78-4 06600 Mexico

D.F. Mexico

Tel: (525) 724-3800

Fax: (525) 703-3908

E-Mail: amchammxamcham.com.mx

(Branch offices also in Guadalajara and Monterrey)

U.S. Department of Commerce

International Trade Administration

Office of Latin America and the Caribbean

14th and Constitution, NW

Washington, DC 20230

Tel: 202-482-0305; 202-USA-TRADE

Fax: 202-482-0464.

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the country. Public Announcements are issued as a means to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas which pose significant risks to the security of American travelers. Free copies of this information are available by calling the Bureau of Consular Affairs at 202-647-5225 or via the fax-on-demand system: 202-647-3000. Travel Warnings and Consular Information Sheets also are available on the Consular Affairs Internet home page: http://travel.state.gov and the Consular Affairs Bulletin Board (CABB). To access CABB, dial the modem number: 301-946-4400 (it will accommodate up to 33,600 bps), set terminal communications program to N-8-1(no parity, 8 bits, 1 stop bit); and terminal emulation to VT100. The login is travel and the password is info. (Note: Lower case is required). The CABB also carries international security information from the Overseas Security Advisory Council and Department's Bureau of Diplomatic Security. Consular Affairs Trips for Travelers publication series, which contain information on obtaining passports and planning a safe trip abroad, can be purchased from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954; telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000.

Passport Services information can be obtained by calling the 24-hour, 7-day a week automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648).

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at (404) 332-4559 gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you in case of an emergency.

Further Electronic Information

Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official magazine of U.S. foreign policy; daily press briefings; Country Commercial Guides; directories of key officers of foreign service posts; etc. DOSFAN's World Wide Web site is at http://www.state.gov.

U.S. Foreign Affairs on CD-ROM (USFAC). Published on an annual basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Contact the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. To order, call (202) 512-1800 or fax (202) 512-2250.

National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information. It is available on the Internet (www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information.

[end of document]


Mexican History

Mexican society grew out of the interaction between two diverse civilizations, the American Indian and the Spanish. The mixing of these two very strong cultures over centuries have created the Mexico of today. Mexican religion, political institutions, and land tenure systems and the racial composition of the Mexican people have all been influenced by these two elements. Mexican history therefore, is the study of three cultures, the Pre-Columbian, the Spaniard, and the Mexican.

PRE-COLUMBIAN CIVILIZATION

The earliest inhabitants of Mexico were hunters. By the 1st or 2d millennium BC, tribes of sedentary seed gatherers, the Olmecs, had settled in villages along the coastal plain at the southwestern edge of the Gulf of Mexico. These small and simply structured communities planted corn, beans, and squash. The basic tools were the stone ax and the wooden digging stick. This primitive form of agriculture led to deforestation, however, which caused soil erosion.

The Classic Maya and Central Highland Civilizations

After about 400 BC the growing problem of a food supply forced the Indians to develop more complex forms of social organization. Their new civilizations had a social structure dominated by a ruling class of priests. From their ceremonial centers these priests, acting as the representatives of the gods, distributed land, allocated food surpluses, stored seed, sponsored trade, and employed skilled craftsworkers. Their religion was pantheistic. These theocracies of the so-called classic era in Mesoamerica first flourished soon after the birth of Christ; they reached their peak in the central highland cities of Teotihuacan and Monte Alban and in the great centers of the Maya of southern Mexico and the area that is now Guatemala.

These classic societies remained generally peaceful and nonexpansionist until about AD 750. A combination of natural disasters and overpopulation is believed to have brought both the Mayas and the Teotihuacans to an end. The land could no longer produce the resources necessary to support the ceremonial centers. Warfare began, and the priestly rulers did not have the ideological tools to mediate the increasing conflict; deforestation and drought worsened the crisis. The growing opulence of the urban religious centers bred envy and then resentment in the hinterland villages whose labor provided the surplus needed to support the magnificence of those cities. Conflict began on the peripheries of these civilizations--where vigorous hunting cultures had survived. A spreading revolt probably interrupted trade, disrupting the food supply, and the great theocratic centers were either abandoned or conquered. Between 650 and 670 warlike peoples invaded, burned, and plundered Teotihuacan. The fall of Teotihuacan was followed by the collapse of Monte Alban and all the great Mayan centers. By AD 900, the golden age of pre-Columbian civilization had ended.

The Toltecs and Aztecs

Some of the Mayan survivors migrated to other areas and founded new cities; others became assimilated into the new conquering tribes, among them the Toltec. The new civilization that emerged has also been called Toltec; it centered around the city of Tula on the central plateau. These more militaristic tribes began to organize their society more rigidly. The Toltecs developed a complex society based on warfare and military expansion, intensive agriculture, and a tight network of government control. They levied tribute on the agriculture surplus of their subject tribes and widely practiced human sacrifice. The Toltecs flourished for three centuries, but by the 13th century, after a period of internecine struggle, Tula had fallen, and the Toltec peoples had dispersed. Their demise gave rise to a confused welter of states, constantly at war with one another, a situation that prevailed for the next two centuries.

During the 15th century the Aztecs, a warlike tribe that had once hired its warriors out to Tula as mercenaries, restored order. This tribe, also known as the Mexica, created a remarkable if short-lived empire. Three large cities, Tenochtitlan (the capital), Tlacopan, and Texcoco, dominated their confederacy. The tribe organized itself into clans with stratified and pyramidal internal social hierarchies. At the top were the warriors and priests (about 3,000 in total). This group was tax-exempt except for the military service owed by the warriors; it dominated all high office and collected tribute from subordinate groups. The priests and warriors wore distinguishable insignia and dress, practiced polygamy, and monopolized land and the educational system. Beneath these nobles existed a servile class of free peasants and a mass of serfs. The pochteca, a group of non-Aztec merchants living in Tenochtitlan's twin city, Tlatelolco, controlled trade.

The Aztecs practiced a polytheistic religion. The chief god, or teotl, was called Huitzilopochtli; he was a god of the sun and of war. There were many lesser deities, among them Quetzalcoatl, a serpent god who symbolized the arts and morality. According to Aztec legend he had been exiled, but his return was expected to herald the end of Aztec civilization. Aztecs practiced a doomsday religion; their world, they believed, was frequently created and then consumed in recurrent disasters. Only constant warfare and human sacrifice would help to preserve their civilization. Aztec warriors captured males from the surrounding tribes for the needed sacrifices; other victims were obtained by tributes levied on subject tribes. The Aztecs generally left the local dynasties in place and levied tribute on the peasants.

Seeking power and sacrificial victims, the Aztecs had expanded their power over much of Mexico by the 16th century. Although other tribes had similar practices, many of the conquered tribes hated their Aztec lords and were seething with revolt when the Spanish arrived.

SPANISH CONQUEST AND RULE

The Spanish conquest of Mexico, launched from Cuba, resulted eventually in the creation of a new, hybrid culture. Spanish political control lasted for three centuries.

Conquest

Hoping to found a colony that might supply mineral riches and a labor force to replace the quickly depleted indigenous population of the West Indies, Cuban Governor Diego de Velazquez De Cuellar sent a series of military expeditions to the mainland. These expeditions were led by adventurers known as Conquistadors. The first, under Francisco Hernandez de Cordoba (d. 1518?), reached the Yucatan Peninsula in 1517. The following year a second expedition, under Juan de Grijalva (d. 1527), reached the peninsula and explored the Mexican coast as far as the site of present-day Veracruz; from the Indians the members of this force heard of the magnificent empire of the Aztecs.

The third expedition, led by the Spanish adventurer Hernan Cortes, succeeded in conquering the Aztecs in less than three years. Cortes landed in 1519 with 11 ships, about 600 men, 16 horses, and a few light cannon; he founded the town of Veracruz and proceeded inland. Many of the disgruntled Aztec subjects flocked to Cortes's side. He reached Tenochtitlan in November 1519 and soon captured the Aztec emperor, Montezuma II. Historians attribute Cortes's success in vanquishing the formidable imperial armies to superior technology, cleverness in posing as the god Quetzalcoatl, and adroit use of Indian mercenaries. After the Spaniards' initial successes, the Aztecs besieged Tenochtitlan; on the night of June 30-July 1, 1520, known as la noche triste (the night of sadness), Cortes retreated, causing many casualties among the Spanish and their Indian allies. The following summer, however, the Spainards, accompanied by thousands of Indian mercenaries, sacked and besieged Tenochtitlan. Their capital in ruins and their emperor dead, the Aztecs finally collapsed. Cortes named his conquest New Spain and sent out expeditions to extend Spanish power over the continent. Pedro de Alvarado conquered (1523-24) the regions of Guatemala and El Salvador, which together then constituted much of Central America.

New Spain

The Spanish crown rapidly sought to consolidate its new empire and slowly curbed Cortes's personal power. An Audiencia (royal court) was established in 1528, and the first viceroy, Antonio de Mendoza, took office in 1535. The followers of Cortes received encomiendas, grants of Indian villages from which they could collect tribute. These grants gave the colonists control over Indian labor and produce. Many of the clergy objected to the encomiendas. One Spanish missionary in particular, Bartolome de Las Casas, a former encomendero, argued for their suppression. The Indians themselves revolted (1541) unsuccessfully against Spanish control and abuses of the encomienda system in the Mixton War. The crown opposed the encomiendas both because they led to abuse of the Indians and because they seemed a reversion of feudal practices that challenged the central power of the monarchy. The Spanish ruler, Holy Roman Emperor Charles V, attempted to abolish or curb them--most notably by the so-called New Laws of the Indies of 1542. Twenty years later a group of leading colonists (led by Cortes's son) revolted in protest against attempts to diminish their power, but the viceroy put down the rebellion. The encomienda system declined gradually.

In close alliance with the Roman Catholic church, the Spanish crown sought to create a well-ordered colony, free of feudal privilege and religious dissent. The Spanish religious orders (especially the Franciscans) were particularly successful. The friars capitalized both on the subject tribes' widespread hatred of the Aztecs and on the similarities between Catholicism and Indian folk religion to carry out mass conversions. In the Spaniards' eyes an Indian who accepted Christianity became theoretically humanized and, therefore, protected by Spanish law. The church often built its shrines on the sites of Indian idols. The friars made the conversions and then moved on to new frontiers. The secular clergy (parish priests) in turn organized the Christian communities. Missions and monasteries came to dominate much of the countryside.

The Spanish crown and colonists controlled a vast wealth that had several sources. Silver mining underlay the colony's prosperity. Urban centers based on mining flourished at Zacatecas, Taxco, and Fresnillo (and later in Durango and Chihuahua). Large estates and ranches fed the mining centers. Other estates grew wheat, sugarcane, and indigo for export. Colonial merchants distributed such goods as cotton, silk, and dye that the Indians produced. Spain, however, following a policy of mercantilism, prohibited the colonists from manufacturing products that competed with goods shipped by or manufactured in Spain. New Spain became the crown jewel of a vast colonial empire.

Decline of New Spain

In the 17th century the economy of New Spain collapsed. Disease and overwork had combined to wipe out much of the Indian population. By 1700 only a little more than 1 million Indians survived in New Spain--out of an estimated population of 11 million or more in the 1520s and perhaps 7 million in the 1550s. In addition, the vast cattle and sheep herds destroyed farmland, and the Spanish monopolized irrigation water; it thus became almost impossible for the Indian farmers to grow food. Without labor the mines could no longer function. The population retreated into rural estates called haciendas, which became self-sufficient centers of political and economic power. The viceroyalty's frontiers continued to expand as friars and soldiers moved the borders into what are today the states of Texas and California. Throughout most of the 17th century, however, New Spain languished. Spain, itself in economic collapse, could provide little help.

Bourbon Reforms

In the 18th century a new Spanish dynasty, the Bourbons, reorganized the colonies. Political boundaries were reshuffled; the crown improved tax collection, reduced export and import duties, and appointed honest officials. The economy boomed. Mining production rose fourfold, and agriculture and trade increased. Acapulco flourished as a center of trade with the Orient; Veracruz dominated the Caribbean and European trade. The colonists also developed textile, rope, tobacco, china, and pulque (an alcoholic beverage) industries--all supported by locally produced raw materials. Puebla, the center of woolen mills and pottery, became a large urban center. Guanajuato and Guadalajara also became centers of wealth and industry. Mexico City, the colony's administrative center, grew to a population of 170,000. It housed the viceroy, a great university, a school of mines, and an audiencia.

In 1800, New Spain enjoyed an enviable position. Mining, industry, and agriculture thrived; it possessed major centers of learning and urban administrative centers. The population had grown to 6.5 million (about 42 percent Indian, 18 percent white, and 38 percent mestizo). The viceroy's writ extended south to present-day Panama and north to California.

The system contained, however, the roots of its own destruction. Native-born criollos (Creoles, or people of European descent born in Spanish America) resented Spanish monopolization of political power and an economic system that favored the Spanish-born. Spain's authority was also eroded as its position as a world power declined. The rural masses lacked land and purchasing power, and thousands lived in urban slums. In addition, New Spain's territorial boundaries were too remote. No roads connected the frontier areas with the administrative centers, and troops for defense were in short supply. These problems led to a final break with Spain in the 1820s.

INDEPENDENCE

Mexican independence came about at the convergence of two revolts. The first was led by two poor priests, Miguel Hidalgo Y Costilla and Jose Maria Morelos y Pavon, and was directed against colonial officials. On Sept. 16, 1810, Hidalgo led an Indian uprising; his call for revolution, the Grito de Dolores (Cry of Sorrows; a rousing speech made in the town of Dolores), called for a new government and redistribution of land. Hidalgo's forces marched toward Mexico City under the banner of the Mexican Virgin of Guadalupe. In the meantime, Morelos led guerrilla forces in the south; he assumed leadership of the revolution after Hidalgo was executed (1811). The Spanish bureaucracy and rich criollos defeated the rebellion, however, and executed Morelos (1815) as well as other leaders. The second revolt occurred when these same wealthy criollos, who feared that Spain (then dominated by liberals) would acquiesce to demands for land redistribution, under the leadership of Agustin de Iturbide and with the support of reactionary Spaniards, declared (1821) Mexico independent. Iturbide was proclaimed Emperor Agustin I in 1822, but the following year unpaid troops overthrew the fiscally plagued empire, set up a republic with Guadalupe Victoria (1786-1843) as its first president, and ushered in 50 years of chaos.

The Age of Santa Anna

Historians have called the years between 1823 and 1855 "the Age of Santa Anna." Gen. Antonio Lopez de Santa Anna, one of the leaders of the coup that had overthrown Iturbide and several times president of Mexico, was more a representative than a dominant figure. Mexico faced staggering problems probably beyond the ability of any individual or group to solve. The government was saddled with an internal debt of millions of pesos incurred by Spain and Iturbide. Military expenses greatly exceeded revenue. The harassed government sought funds abroad, but foreign loans could be obtained only at heavy rates of interest and discount. Once the money reached Mexico, government officials spent it on second-hand war materiel or grafted it themselves. Bankrupt governments rose and fell.

During this turbulent era, two groups competed for dominance. Liberals representing regional power centers and free-trading interests sought to model the new Mexican nation on the United States. Their rivals, the conservatives, were supported by the army, Mexico City and the other colonial administrative centers, and some manufacturers. Both parties eventually turned to the church's wealth to alleviate insurmountable fiscal problems. Santa Anna, sometimes a liberal, sometimes a conservative, moved in and out of power.

By the 1850s this chaos had led to disaster. Mining virtually stopped, agriculture declined, and trade and industry suffered from internal tariffs, foreign competition, banditry, and political violence. Immigration was virtually nonexistent. Texas had declared its independence on Mar. 2, 1836, and by 1846, Mexico was embroiled in a war with the United States. The disunited Mexicans were defeated, and in the peace treaty of Guadalupe Hidalgo, Mexico lost over half of its territory, including the area of the present U.S. states of California and New Mexico as well as northern Arizona. Mexico stood virtually ruined; the national debt had reached astronomical proportions; and the army had degenerated into banditry. In 1853, Santa Anna returned to power as "perpetual dictator" and sold southern Arizona to the United States for $10 million under what is known as the Gadsden Purchase.

La Reforma (Period of Political Reform)

In 1855 a brilliant group of liberals, led by Melchor Ocampo (1814-61), Ignacio Comonfort (1812-63), and the pure-blooded Indian Benito Juarez, forced Santa Anna from power and ended his dominance of Mexican national life. In order to restore the shattered economy the liberals decreed that the church had to sell most of its land and that Indian communal lands (ejidos) had to be distributed to individual peasants. These reforms did not create a rural middle class, however; the poor could not afford to purchase the newly available land. The liberals also promulgated (1857) a new constitution. Government revenue rose but most of it went to meet the costs of a new civil war, called the War of Reform (1858-61). The conservatives sought foreign help, and in 1862, Napoleon III of France sought to establish a Mexican empire under the Austrian prince Maximilian. The liberals, led by Juarez, resisted bitterly. Although supported by French troops and Mexican conservatives, Maximilian could not consolidate his empire. The French withdrew in 1867, leaving the ill-fated emperor to meet his death. Juarez, then president, initiated various reforms to modernize Mexico, but he died in 1872.

The liberals made many mistakes, but their accomplishments were impressive. They destroyed the excessive power of the army, the church, and other conservative elements. They institutionalized democratic principles in the federal constitution of 1857. Finally, their struggle against Maximilian created a sense of nationalism previously unknown in Mexico. This sense of strong nationalism survives until today.

El Porfiriato (The Rule of Porfirio Diaz)

Juarez's liberal successors faltered, however, and in 1876 a general, Porfirio Diaz, seized power. Diaz effectively governed Mexico until the Revolution of 1910, serving as president from 1877 to 1880 and 1884 to 1911. During the age of Don Porfirio a new Mexico emerged. Diaz established order and workable government. Civil wars ceased, and eventually banditry disappeared from the countryside. Now provincial governors obeyed the law emanating from Mexico City. The army became professionalized. The Rurales, a militarized police force of several thousand, maintained order throughout the country. Diaz and the Cientificos, the group of wealthy intellectuals that advised him, adopted French positivism as a national creed. The positivists' worship of science, technology, and quantitative growth served as Diaz's ideological justification. Foreign investors rushed to take advantage of the new political and economic climate, and money poured in. The results were phenomenal. Exports and national income increased; new highways, railroads, and telegraph lines crossed Mexico; and new industries dotted the countryside. Foreign investment and technology revived mining and created major oil fields around Veracruz. Formerly despised for its backwardness, Mexico became the model for much of the then developing world.

Porfirian Mexico, however, like New Spain in 1800, contained the roots of its own destruction. The urban and rural masses remained impoverished. Mexicans of all classes hated the increasing foreign economic dominance. Finally a politically ambitious younger generation came to resent the 30-year dominance exercised by the Diaz clique.

MODERN MEXICO

The Revolution

The major direct cause of the revolt was Diaz's monopoly of political power. In 1908, perhaps to refute charges about the autocratic nature of his rule, he told a U.S. journalist, James Creelman (1859-1915), that Mexico would be ready for free elections in 1910. Once published, the interview inspired various discontented sectors to begin organizing. The opposition eventually coalesced around an eccentric northern landowner, Francisco I. Madero, who had the time, resources, and contacts to organize an effective political movement. Madero campaigned under the slogan, "effective suffrage and no reelection." Diaz rigged the election, however, and Madero led a revolt that spread rapidly throughout the nation. As the top-heavy, corrupt Diaz military organization collapsed, the old dictator fled.

A moderate, Madero advocated neither social reforms nor any other drastic changes. He succeeded in angering not only the radical proponents of land reform and economic nationalism but also the landowners, who opposed all change and hated the new president's weakness. With conservative support, yet another general, Victoriano Huerta, overthrew Madero, who was executed.

Mexico again became engulfed in ruinous violence. In the north, Pancho VILLA, an ex-bandit, organized the local cowboys. In the south, Emiliano Zapata, a small farmer, recruited an army of angry landless peasants. Other small armies joined the struggle against Huerta. The U.S. government under Woodrow Wilson imposed sanctions and even sent troops that occupied Veracruz for several months; Huerta, his army defeated, fled. In August 1914, however, Venustiano Carranza, a rich landowner who had supported Madero, assumed executive power, and civil war broke out between his forces and those of Villa in the north and Zapata in the south. In 1915 the U.S. government recognized Carranza as head of a de facto government, although guerrilla raids continued until 1917, when Carranza's forces prevailed. Zapata was murdered (1919), and Villa surrendered (1920).

The victors called a convention that legislated (1917) a new constitution embodying principles of anticlericalism, land reform, nationalism, and protection of workers. Although extremely nationalistic, Carranza desired neither land reform nor a strong labor movement. In 1920 he tried to prevent Gen. Alvaro Obregon from succeeding him as president, but Obregon led a military coup that overthrew Carranza's government the following year.

The Northern Dynasty

The governments that ruled Mexico from 1921 to 1933 are known as the Northern Dynasty. The governments of Presidents Obregon, Plutarco Elias Calles, Emilio Portes Gil (1891- ), Pascual Ortiz Rubio (1877-1963), and Abelardo Rodriguez (1889-1967)--dominated by politicians from northern Mexico--sought to establish order while developing the economy and increasing the internal market by land reform and higher wages. They faced bitter opposition from the clergy, landowners, foreign investors, and ambitious generals within their own ranks. The government brutally crushed two military revolts and the Cristero rebellion of Mexico's militant Catholics.

The northerners achieved many of their objectives. They created political peace and formed a new political party, the PRI (National Revolutionary Party), which unified progovernment political forces and destroyed opposition parties. The land reforms of Calles and Portes expanded the internal market and created peace in rural areas. Obregon brought organized labor into the government and, as a result, wages improved--for organized, urban workers. Economic productivity rose, mining resumed, and Monterrey became a center for steel production. Calles established cordial relations with the United States, but Mexican efforts to control the oil industry were problematic.

Despite these reforms large pockets of discontent remained in Mexico in the 1930s. The government and its labor allies had become increasingly corrupt. Calles, the PRI's dominant leader, became more conservative, ending land reform and opposing strikes. Furthermore, the world depression that began in 1929 had halted the economic recovery. Intellectuals admired U.S. president Franklin Delano Roosevelt's New Deal and called for similar reforms in Mexico.

Gen. Lazaro Cardenas became president in 1934. Although an ally of Calles, he surprisingly ended the policies of the Northern Dynasty and revived the revolutionary fervor of 1910. His government exiled Calles, carried out a vast land reform, reorganized the labor movement, and nationalized foreign oil companies. Cardenas also established state-managed collective farms as the basis of Mexican agriculture; these farms were called ejidos. In 1940 he stepped down in favor of the moderate general Manuel Avila Camacho.

Mexico since the 1940s

Avila Camacho and his successor, Miguel Aleman Valdes, established policies that Mexico has followed since Cardenas, emphasizing industrial growth while downplaying redistributive social reforms and economic nationalism. This policy led to a period of great economic growth, but it also led to great maldistribution of wealth. Economic issues, intellectual ferment, and government repression of labor led to the student strike of 1968, which the government of Gustavo Diaz Ordaz brutally repressed.

The term of Luis Echeverria Alvarez, who succeeded Diaz Ordaz, was marked by economic instability and political unrest. Under Echeverria's successor, Jose Lopez Portillo, the nation exploited newly found oil reserves and entered a period of economic prosperity and growing international influence. The decline of the world oil market in the 1980s, however, plunged Mexico into an economic crisis that by 1989 had created a total foreign debt of more than $100 billion and an internal debt of more than $50 billion.

When Miguel De La Madrid Hurtado assumed the presidency in 1982, Mexico's economy was on the verge of collapse. The government imposed broad austerity measures that included privatization and antiinflationary efforts. The economy suffered another setback in 1985 when earthquakes damaged the capital, killing thousands.

In December 1988, Carlos Salinas de Gortari became president following a controversial election that narrowly preserved the rule of the Institutional Revolutionary party (see PRI), in power since 1929. During 1989 the government liberalized Mexico's foreign-investment regulations to permit foreign ownership of business, began privatizing government- owned businesses, and negotiated a landmark agreement with foreign commercial bank creditors to lower Mexico's external debt.

In 1990, Mexico also began negotiations with the United States on a free-trade pact similar to one concluded by the United States and Canada in 1989. Canada joined the negotiations in 1991, the aim being to create a North American common market. The free-trade agreement was ratified in 1993, and went into effect on January 1, 1994.

On the day NAFTA's took effect, January 1, 1994, rebels from then unknown group called the Zapatista National Liberation Army (EZLN) seized four towns in the southeastern state of Chiapas. Marcos, the rebel spokesmen declared they resorted to military action to protest economic inequalities and discrimination against the Indian population of the region. Mediation efforts between government and rebel representatives continued in February and March.

The government and the Zapatistas have negotiated on topics such as granting greater autonomy to indigenous people since then, although the partial accords that were reached have not been implemented.

Following the massacre of 45 indigenous peasants in Acteal, Chiapas in December 1997, tensions in the state increased and pressures for a negotiated settlement were renewed.

Draft legislation to change the Mexican Constitution's provisions on indigenous rights has been introduced in the Mexican Congress. Government attempts to re-engage the EZLN in direct talks have so far been unsuccessful.

In March 1994, PRI presidential candidate Luis Donaldo Colosio was assassinated. In September 1994, PRI Secretary General Jose Francisco Ruiz Massieu was also assassinated. Although the gunmen in both murders and co-conspirators in the Ruiz Massieu murder were tried and convicted, the Mexican public is not satisfied that all the truth behind these crimes has been uncovered. A flurry of public scandals followed in 1995 regarding supposed attempts at obstruction of justice and allegations of major corruption in police, judicial, military, and other authorities, as well as big business, including allegations of ties to narcotics trafficking. The atmosphere of scandal around former President Carlos Salinas has turned him into something of an arch-villain in the popular mind.

A new group of uncertain origin and size, the Popular Revolutionary Army (EPR), made its appearance in southern Mexico on June 28, 1996. The government considers the EPR a terrorist organization and has vowed to bring the group to justice. After a period of inactivity following mid-term elections in July 1997, the EPR has, in the summer of 1998, again begun engaging in small-scale actions in the southern state of Guerrero.


Mexican Government

Ministry of Finance

Ministry of Foreign Affairs

Ministry of Interior

Office of the Attorney General (mostly in Spanish)

Office of the President (for english version go to International page)

Ministry of Agriculture (Spanish only)

Ministry of Transportation and Communication (Spanish only, very slow loading)

Ministry of Social Development

Ministry of Public Education (Spanish only)

Ministry of Energy (Spanish only)

Ministry of Health (Spanish only)

Ministry of Labor (Spanish only)

The National Institute of Statistics, Geography & Informatics

Ministry of Commerce & Industrial Development (Spanish only)

Chamber of Deputies contains legislative documents and information (Spanish only)

Mexican Investment Board This site contains a lot of useful information in English

Ministry of Environment, Natural Resources and Fishery

Consulate General of Mexico, New York


Mexican Business Law

As in the United States, there are a variety of business entities which are available in Mexico to foreign business and investors. The major types of business entities available are: (1) Corporations, (2) Limited Liability Companies, (3) General Partnerships, (4) Limited Partnerships, (5) Civil Partnerships, (6) Joint Ventures, (7) Branch Offices, (8) Franchises or Licensing Agreements, and (9) Sole Proprietorships.

Corporations
Mexico has two corporate forms, Sociedad Anonima (S.A.) and Sociedad Anonima de Capital Variable (S.A de C.V.), that are much like U.S. corporations, and are the business entities most commonly used by foreigners. They have the following characteristics:


Backgound Notes Geography History

Government Business Law Commercial Guide

Treaties Labor Law Environmental Law

Banking & Finance Visas & Immigration Foreign Investment

Intellectual Property Taxes General Economic Info

Tourism Legal System General Information

Importing & Exporting Marketing



Home
The Classroom
The Library
The Caribbean
Mexico & Central America
South America
International Treaties



Doing Business in Latin America
No claims to original works.
Web Page written, created, and designed by Douglas Smurr, smurfer@guate.net
Last Update: September 28, 1998.
© 1998, all rights reserved.