The United States and Mexico have a special relationship as neighbors and partners under the North American Free Trade Agreement (NAFTA). The friendly relationship has been strengthened by President Bush’s meetings with President Fox. This report, covering trade, migration/border, drug trafficking, and political issues, will be updated on a regular basis.

History and geography have given Mexico a unique status in the U.S. immigration system, and have made the Mexico-U.S. migration flow the largest in the world. Mexicans are the largest group of U.S. migrants across most types of immigration statuses—a fact that may have important implications for how Congress makes U.S. immigration policy. This report reviews the history of immigration policy and migration flows between the countries and the demographics of Mexicans within the United States. It also analyzes contemporary issues in U.S. immigration policy and the impact Mexico may have on U.S. immigration outcomes.