Wednesday, May 8, 2013

Obama in Mexico: But what Mexico was he talking about?


Last Friday (05/03/13), U.S. President Barack Obama gave a speech at the National Museum of Anthropology in Mexico City during which he highly praised the great socio-economic progress currently taking place in that country.  While much of Mexico’s mainstream press reported positively on the bilateral meetings between Obama and his counterpart, Mexican President Enrique Peña Nieto, and lauded Obama’s speech, the U.S. media took a different slant, fueled primarily by an article in the Los Angeles Times, “Obama sings Mexico's praises, but some Mexicans hear flat notes” (http://www.latimes.com/news/world/worldnow/la-fg-wn-mexico-obama-reaction-20130503,0,2714566.story). The Times story was picked up by wire services and became the dominant view of the speech in the U.S. media. It included numerous quotes, such as:

“‘[That was] a really good speech by President Obama, but what Mexico was he talking about?’ said Jose Carlos Cruz, 24, a graduate student in international relations.”

“Alberto Rios Lara, 26, who is studying to be an economist, said, ‘Obama is a great speaker; it's really impossible not to feel excited. However, the reality is different in Mexico. We need more action and fewer speeches.’"

The two major issues in U.S.-Mexico relations are drug trafficking and illegal immigration. Obama’s words can be interpreted as a call for Mexicans to stay at home in Mexico, a position that echoes the sentiments of Peña Nieto. The latter wants to showcase how the return to power of the Institutional Revolutionary Party (PRI – Partido Revolucionario Institucional) has brought economic growth and stability to Mexico. At the same time, Peña Nieto has stepped back on cooperative ventures with U.S. law enforcement in the area of drug trafficking, trying to foster an image of self-sufficiency. Nevertheless, Peña Nieto has to worry about the collateral effects of any U.S. economic slowdown and how it could affect Mexico’s growth. As primary trading partners, both the U.S. and Mexico have vested interests in shoring up their mutual commerce. According to the Mexican newspaper El Universal, there’s cause for concern in Mexico that a slowing U.S. recovery will adversely impact Mexico (http://www.eluniversal.com.mx/notas/921054.html). The paper reported that in 2012, the U.S. economy grew by 2.2% annual rate, compared to 1.8% in 2011. Nevertheless, the last quarter showed signs of weakening, dropping from 3.1% in the third quarter to -0.1% in the fourth. The article claims that this slowing will hurt Mexico’s GDP, whose 3.9% growth in 2012 is projected to slow to 3.5% this year. This is why Peña Nieto’s government was so enthusiastic about Obama’s cheerleading, releasing a statement that “both governments are committed to working to make the North American region the most competitive and dynamic in the world,” according to a spokesperson for the Ministry of Finance and Public Credit (SHCP - Secretaría de Hacienda y Crédito Público). This is reflected in the opening address of the SHCP Minister, Luis Videgaray, at the G24 press conference in Washington, D.C. on April 18, 2013. Videgaray indicated emphasized, “This means that we still face very important challenges starting out with the crisis, financial imbalances, fiscal imbalances that create relevant risks for G24 countries. We need to, in parallel, push forward a pro-growth productivity-based agenda” (http://www.shcp.gob.mx/SALAPRENSA/doc_discurso_funcionarios/secretarioSHCP/2013/lvc_conferencia_g24_ing.pdf).

In spite of Obama’s and Peña Nieto’s expressed optimism in Mexico’s social and economic outlook, the very real specter of violence, poverty and death haunts U.S.-Mexico relations. The drug cartel wars now stretch across the entire length of the shared border, leaving tens of thousands dead annually. This violence together with rampant poverty push thousands more to seek opportunities in the U.S. With post-9/11 tightened security, most people entering the U.S. illegally risk their lives crossing through extreme desert environments. The NGO Humane Borders has compiled a map of confirmed fatalities in southern New Mexico. It reports 2,269 deaths from 10/01/99-03/28/12 (http://www.humaneborders.net/warning-posters/).

 These are the realities that will require serious cooperation, and not just speeches, on both sides of the line in the sand.

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