"Obama meets with Mexico's Peña Nieto, vows to boost trade"

Article posted: May 2, 2013
Author: Kristin Deasy

http://www.globalpost.com/dispatch/news/regions/americas/mexico/130502/obama-meets-mexicos-president-pena-nieto-live-video

Barack obama and President Enrique Peña Nieto met in Mexico City this past Thursday. Peña Nieto announced that future measures will be taken in order to increase trade and educational cooperation, and address immigration issues. As of now, US is Mexico's number one economic provider and Mexico is the third largest partner of trade for the US. Therefore, growth in Mexico will mean growth in America. By cooperation between the US and Mexican economies, Peña Nieto claims, "we can make a more productive, a more competitive region,". Educational and social reforms will be made in Mexico as an approach to the growing drug problem of the country. As for immigration, there is a new reform bill currently in the US Congress and Peña Nieto did not make many comments on the issue. 

In class, we have discussed the arbitrage opportunity. Mexico has the US as their number one economic provider over many other countries. It may be due to the location of the country and the fact that they are neighboring locations. Transportation wise, railroads, sea ports, and airports of Mexico provide several opportunities for the US to trade easily with them. The ability to trade between the US and Mexico so smoothly will make it easier to increase trade between the two and better the economies of both. 

I think the need for increase in trade was to encourage growth of the Mexican economy. However, the topics of immigration and educational reforms were brought into conversation because they have been growing issues of the country. Drug use and immigration both affect the US, so it was crucial for the leaders of both countries to address the issues. I believe educational reforms will have reduce the drug issue in the long run. More education and staying in school will keep children from getting involved with drugs at a lower age and take them down a more positive path than illegal drugs. Education reforms may also allow more opportunities for Mexicans in their own country rather than having to illegally immigrate to the US.