Mexico—what went wrong?

Facts are stubborn and reveal Mexico, not the United States, as a de facto aggressor and belligerent on many fronts. Mexico runs a NAFTA-protected $70 billion trade surplus with the U.S., larger than that of any other single American trade partner (including Japan and Germany) except China. The architects of NAFTA long ago assured Americans that such a trade war would not break out, or that we should not worry over trade imbalances, given the desirability of outsourcing to take advantage of Mexico’s cheaper labor costs.

A supposedly affluent Mexico was supposed to achieve near parity with the U.S., as immigration and trade soon neutralized. Despite Mexico’s economic growth, no such symmetry has followed NAFTA. What did, however, 34 years later, was the establishment of a dysfunctional Mexican state, whose drug cartels all but run the country on the basis of their enormous profits from unfettered dope-running and human-trafficking into the United States. NAFTA certainly did not make Mexico a safer, kinder, and gentler nation.

In addition, Mexican citizens who enter and reside as illegal immigrants in the U.S. are mostly responsible for sending an approximate $30 billion in remittances home to Mexico. That sum has now surpassed oil and tourism as the largest source of Mexican foreign exchange. That huge cash influx is the concrete reality behind Obrador’s otherwise unhinged rhetoric about exercising veto power over U.S. immigration law.

What is also unsaid is that many of the millions of Mexican expatriates in the United States who send remittances home to Mexico are themselves beneficiaries of some sort of U.S. federal, state, or local support that allows them to free up cash to send back to Mexico.