	Background

The United States has assisted the Mexican government in its  counternarcotics efforts since 1973, providing about $350 million in aid. Mexico's Counternarcotics Efforts

Although there have been some difficulties, the United States and Mexico  have undertaken some steps to enhance cooperation in combating illegal  drug activities. There  have been some positive results from the new initiatives, such as the arrest  of two major drug traffickers and the implementation of the currency and  suspicious transaction reporting requirements. Overall, the results show: drugs are still flowing across the border at about the same rate as 1997, there have been no significant increases in drug eradication and no major drug trafficker has been extradited to the United States, money-laundering prosecutions and convictions have been minimal, corruption remains a major impediment to Mexican counternarcotics most drug trafficking leaders continue to operate with impunity. Cocaine  seizures in 1998 were about one-third lower than in 1997. According to U.S. and Mexican  law enforcement officials, corruption remains one of the major  impediments affecting Mexican counternarcotics efforts. These include (1) reorganizing the Attorney  General’s office and replacing the previously discredited drug control office  with the Special Prosecutor’s Office for Crimes Against Health; (2) firing or  arresting corrupt or incompetent law enforcement officials; (3) establishing a screening process to filter out corrupt law enforcement  personnel; and (4) establishing special units within the military, the  Attorney General’s Office, and the Secretariat of Hacienda—the Organized  Crime Unit, the Bilateral Task Forces and Hacienda’s Financial Analysis  Unit—to investigate and dismantle drug-trafficking organizations in Mexico  and along the U.S.-Mexico border and investigate money-laundering  activities. Additionally, the President expanded the counternarcotics role  of the military. The Organized Crime Unit and the Bilateral Task Force were involved in  several counternarcotics operations in 1998, for example, the capture of  two major narcotics traffickers and the recent seizure of properties  belonging to alleged drug traffickers in the Cancun area, as well as the  seizure of money, drugs, and precursor chemicals at the Mexico City  Airport. Additionally, increasing the involvement of the Mexican military in law  enforcement activities and establishing screening procedures have not  been a panacea for the corruption issues facing Mexico. According to the Justice Department, Mexico has approved the  extradition of eight other Mexican nationals charged with drug-related  offenses. New Initiatives

Over the past year, Mexico has announced a new drug strategy and  instituted a number of new counternarcotics initiatives. During 1998 and 1999, the government of Mexico announced a number of  new initiatives. A  senior Mexican government official termed this new initiative a “total war  against the scourge of drugs.”

	Status of U.S. Assistance

Last year we noted that while U.S.-provided assistance had enhanced the  counternarcotics capabilities of Mexican law enforcement and military  organizations, the effectiveness and usefulness of some assistance were  limited. For example, two Knox-class frigates purchased by the  government of Mexico lacked the equipment needed to ensure the safety of  the crew, thus making the ships inoperative. Finally, the  four C-26 aircraft still are not being used for counternarcotics operations.
Why GAO Did This Study

Pursuant to a congressional request, GAO discussed the counternarcotics efforts of the United States and Mexico, focusing on: (1) Mexico's efforts in addressing the drug threat; and (2) the status of U.S. counternarcotics assistance provided to Mexico.

What GAO Found

GAO noted that: (1) while some high-profile law enforcement actions were taken in 1998, major challenges remain; (2) new laws passed to address organized crime, money laundering, and the diversion of chemicals used in narcotics manufacturing have not been fully implemented; (3) moreover, during 1998, opium poppy eradication and drug seizures remained at about the same level as in 1995; (4) in addition, no major Mexican drug trafficker was surrendered to the United States on drug charges; (5) Mexican government counternarcotics activities in 1998 have not been without positive results; (6) one of its major accomplishments was the arrest of two major drug traffickers commonly known as the Kings of Methamphetamine; (7) although all drug-related charges against the two have been dropped, both are still in jail and being held on extradition warrants; (8) the Mexican foreign ministry has approved the extradition of one of the traffickers to the United States, but he has appealed the decision; (9) in addition, during 1998 the Organized Crime Unit of the Attorney General's Office conducted a major operation in the Cancun area where four hotels and other large properties allegedly belonging to drug traffickers associated with the Juarez trafficking organization were seized; (10) Mexico also implemented its currency and suspicious reporting requirements; (11) the Mexican government has proposed or undertaken a number of new initiatives; (12) it has initiated an effort to prevent illegal drugs from entering Mexico, announced a new counternarcotics strategy and the creation of a national police force; (13) one of the major impediments to U.S. and Mexican counternarcotics objectives is Mexican government corruption; (14) recognizing the impact of corruption on law enforcement agencies, the President of Mexico: (a) expanded the role of the military in counternarcotics activities; and (b) introduced a screening process for personnel working in certain law enforcement activities; (15) since these initiatives, a number of senior military and screened personnel were found to be either involved in or suspected of drug-related activities; (16) since 1997, the Departments of State and Defense have provided Mexico with over $92 million worth of equipment, training, and aviation spare parts for counternarcotics purposes; and (17) the major assistance included UH-1H helicopters, C-26 aircraft, and two Knox-class frigates purchased by the government of Mexico through the foreign military sales program.