On December 17, 2004, PresidentBush signed into law the Intelligence Reform and Terrorism Prevention Act of 2004 ( S. 2845 / P.L. 108-458 ), with provisions to increase immigration law enforcement personnel and to adoptmore stringent border control and identity document standards. In 2001, Presidents Fox and Bush met in mid-February in Mexico, in mid-April in Canada, in earlyMay in the United States, in early September in the United States on an official state visit, and inearly October in the United States when President Fox expressed solidarity with the United Statesfollowing the terrorist attacks. Bilateral Issues for Congress

		Trade Issues

Trade between Mexico and the United States has grown dramatically in recent years, encouraged by the adoption of the North American Free Trade Agreement (NAFTA) between theUnited States, Mexico, and Canada. Several NAFTA institutions mandated by the agreements have been functioning since 1994. The NAFTA institutions have operated to encourage cooperation on trade, environmental and labor issues, and to consider nongovernmental petitions under the labor and environmental sideagreements. (4)
Recent Trade Disputes. A NAFTA dispute resolution panel supportedMexico's position in February 2001. Bush Administration Initiatives. During the Bush-Fox meeting in Monterrey, Mexico, on March 22, 2002, the Presidents noted that important progress had been made to enhance migrant safety, and they agreed to continue thecabinet-level talks to achieve safe, legal, and orderly migration flows between the countries. In early 2004, President Bush seeking to revive the immigration discussion, proposed an overhaul of the U.S. immigration system on January 7, 2004, to permit the matching of willingforeign workers with willing U.S. employers when no Americans can be found to fill the jobs. In presidential meetings in 2001,Presidents Bush and Fox agreed to enhance law enforcement and counter-narcotics cooperation, andPresident Fox called for reform of the U.S. drug certification process. On October 19, 2004, DEA officials announced the dismantling through, OperationMoney Clip, of a major Mexican money-laundering and drug trafficking organization operating inthe United States. Political and Human Rights Issues

Concerns over Elections and Political Rights. On July 6, 2003, Mexico held nation-wide elections to renew the membership of the 500-seat Chamber of Deputies, and to elect local officials in ten states. Allegations of Human Rights Abuses. On December 10, 2004, President Fox, responding to an analysis by the U.N. HighCommission for Human Rights, presented a series of proposed human rights reforms that woulddiscourage torture and strengthen the rights of defendants in Mexico. Mexico's Counter-Narcotics Efforts Under Fox, December 2000 to October 2004 , by [author name scrubbed].
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 strengthenedby President Bush's meetings with President Fox but has been weakened by disagreements over Iraqand other issues. Major congressional issues are trade, migration/border security, drug trafficking,and political issues.
Trade. Since 1994, NAFTA institutions have been functioning, trade between the countries has tripled, and allegations of violations of labor and environmental laws have been considered. TheBush Administration has argued that NAFTA has had modest positive impacts on all three membercountries, but Mexican farmers have strongly criticized the effects of NAFTA. Recent trade disputeswith Mexico have involved trucking, telecommunications, tuna, sweeteners and sugar.
Migration/Border Security. In February 2001, Presidents Bush and Fox agreed to establish high-level talks to ensure safe, legal, and orderly migration flows between the countries, but the talksstalled after the September 2001 terrorist attacks, and border controls were later strengthened underthe new Department of Homeland Security. In January 2004, President Bush proposed a majorimmigration reform "to match willing foreign workers with willing U.S. employers when noAmericans can be found to fill the jobs." In December 2004, Congress passed the IntelligenceReform and Terrorism Prevention Act of 2004 ( S. 2845 / P.L. 108-458 ), with provisionsto increase immigration law enforcement personnel and to adopt more stringent border control andidentity document standards.
Drug Trafficking. Bush Administration officials have regularly praised Mexico's counter-narcotics efforts under Fox, especially action against major traffickers, and havecharacterized the bilateral cooperation in this area as unprecedented. The State Department reportedin April 2004, however, that marijuana and opium poppy cultivation increased significantly inMexico in 2003. In recent law enforcement actions, on October 19, 2004, DEA officials announcedthe dismantling, through Operation Money Clip, of a major Mexican money-laundering and drugtrafficking organization operating in the United States.
Political and Human Rights. In nation-wide elections on July 6, 2003, to renew the Chamber of Deputies, President Fox's PAN fared poorly, while the previously dominant PRI and the leftistPRD increased representation, making congressional approval of President Fox's reform measuresless likely. Local elections are being held in an environment in which the parties are positioningthemselves for the July 2006 presidential elections. On human rights issues, President Fox hasdesignated special prosecutors to prosecute those responsible for human rights abuses in the 1970sand 1980s, but little progress has been made. On December 10, 2004, President Fox, responding toan analysis by the U.N. High Commission for Human Rights, presented a series of proposed reformsto discourage torture and to strengthen the rights of defendants in Mexico.