Latin American Challenges

Report Outline
Schism Over El Salvador
Latin America and the World
Search for New Latin Policy
Special Focus

Schism Over El Salvador

Conflicts Between United States and Mexico

The course of U.S. relations with its two closest neighbors seldom runs smooth. Attending to Canadian and Mexican affairs is, therefore, a top foreign policy priority of most incoming American presidents. Ronald Reagan visited Canada last month, and, until he was wounded by a would-be assassin's bullet on March 30, was scheduled to meet with Mexican chief of state José Lopez Portillo on April 27–28 in Tijuana and San Diego. Before taking office, Reagan met with Lopez Portillo on Jan. 5 at the border city of Juarez.

The Reagan administration's evolving strategies in this hemisphere, and especially in strife-torn Central America, have cast a shadow over Washington's dealings with both Canada and Mexico. In Ottawa, Reagan was able to soothe Canadian fears of an impending U.S. military intervention in El Salvador. But when his meeting with Lopez Portillo is finally held, Reagan may have a more difficult time. Mexico not only sharply disagrees with Reagan's stance in Central America, but sees itself as a potential rival of the United States for power and influence in the region.

There are enough bilateral problems to keep Reagan and Lopez Portillo talking for a month. The principal issues are oil and aliens, and how much of each will cross the border from Mexico to the United States in the next several years. Terms of trade are also critical. Mexico is the United States' third largest trading partner, with a 1980 combined export-import total with this country of $27 billion. Despite the large volume of bilateral trade, the Mexicans have serious complaints about their access to the American market, particularly for fresh vegetables. Fishing arrangements are also in dispute. Last July, the United States embargoed imports of tuna fish and tuna products from Mexico and in December the Mexicans banned U.S. fishing vessels from Mexican waters. Another issue of long-standing concern is control of the illicit traffic in drugs from Mexico to the United States.