This report covers the North American Free Trade Agreement (NAFTA), and U.S. - Mexico drug trafficking. It also looks at migration, environmental issues, legislation in the 111th and 112th Congress, and the relationship between the Obama Administration and Mexico.

This report provides an introduction of Mexico during Peña Nieto administration. The report discusses key issues of congressional interest in the bilateral relationship.

This report begins with a brief discussion of security challenges in Mexico and Mexico's security strategy. It then provides information on congressional funding and oversight of the Mérida Initiative, with details about each of the program's four pillars. The report concludes by raising policy issues that Congress may wish to consider.

Increasing violence perpetrated by drug trafficking organizations and other criminal groups is threatening citizen security and governance in Mexico. Escalating violence has increased U.S. concerns about stability in Mexico, a key political and economic ally, and about the possibility of violence spilling over into the United States. In recent years, U.S.-Mexican security cooperation has increased significantly, largely as a result of the development and implementation of the Mérida Initiative, a counterdrug and anticrime assistance package for Mexico and Central America that was first proposed in October 2007. This report looks at the funding and Congressional oversight for this Initiative.