National Trade Data Bank ITEM ID : ST BNOTES MEXICO DATE : Oct 28, 1994 AGENCY : U.S. DEPARTMENT OF STATE PROGRAM : BACKGROUND NOTES TITLE : Background Notes - MEXICO Source key : ST Program key : ST BNOTES Update sched. : Occasionally Data type : TEXT End year : 1994 Date of record : 19941018 Keywords 3 : Keywords 3 : | MEXICO BACKGROUND NOTES: MEXICO PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS U.S. DEPARTMENT OF STATE APRIL 1994 Official Name: United Mexican States PROFILE Geography Area: 1,972,500 sq. km. (761,600 sq. mi.); about three times the size of Texas. Cities: Capital--Mexico City (15 million, 1990 census). Other cities--Guadalajara, Monterrey, Puebla, Leon. Terrain: Coastal lowlands, central high plateaus, and mountains up to 5,400 m. (18,000 ft.). Climate: Tropical to desert. People Nationality: Noun and adjective--Mexican(s). Population (1994 est.): 92 million. Annual growth rate: 2%. Ethnic groups: Indian-Spanish (mestizo) 60%, Indian 30%, Caucasian 9%, other 1%. Religions: Roman Catholic 90%, Protestant 5%, other 5%. Language: Spanish. Education: Years compulsory--12. Literacy--90%. Health: Infant mortality rate--27/1,000. Life expectancy--male 69 yrs., female 76 yrs. Labor force (33 million): Services--29%. Agriculture, forestry, hunting, fishing--27%. Manufacturing--16%. Construction--6%. Merchandising--5%. Mining and quarrying--5%. Transportation and communication--4%. Other--7%. Government Type: Federal republic. Independence: First proclaimed September 16, 1810; republic established 1824. Constitution: February 5, 1917. Branches: Executive--president (chief of state and head of government). Legislative--bicameral. Judicial--Supreme Court, local and federal systems. Political parties: Institutional Revolutionary Party, National Action Party, Party of the Democratic Revolution, Popular Socialist Party, Authentic Party of the Mexican Revolution, Party of the Cardenist Front of National Reconstruction, Labor Party, Mexican Green Ecology Party, Mexico Democratic Party. Suffrage: Universal at 18. Administrative subdivisions: 31 states and a Federal District. Flag: Green, white, and red vertical bands. Centered is an eagle perching on a cactus and holding a snake in its beak. Economy GDP (1993): $356 billion. Per capita GDP: $4,000. Avg. annual real GDP growth (1989-93): 3%. Natural resources: Petroleum, silver, copper, gold, lead, zinc, natural gas, timber. Agriculture: Products--corn, beans, oilseeds, feedgrains, fruit, cotton, coffee, sugarcane, winter vegetables. Industry: Types--manufacturing, services, commerce, transportation and communications, petroleum and mining. Trade (1993): Exports--$52 billion: manufacturing 80%, petroleum and derivatives 14%, agriculture 5%, other 1%. Imports--$65 billion: intermediate goods 71%, capital goods 17%, consumer goods 12%. Major trading partners--U.S., EU, Japan. U.S. imports--$40 billion. Current market exchange rate (April 1994): 3.36 new pesos (introduced January 1993)=$1. PEOPLE Mexico is the most populous Spanish-speaking country in the world; it is the second most populous country in Latin America after Portuguese-speaking Brazil. About 70% of the people live in urban areas. Many Mexicans emigrate from rural areas that lack job opportunities--such as the underdeveloped southern states and the crowded central plateau--to the industrialized urban centers and the developing areas along the U.S.-Mexico border. According to some estimates, the population of the areas surrounding Mexico City is about 20 million, which would make it the largest concentration of population in the world. Cities bordering on the United States such as Tijuana and Ciudad Juarez, and cities in the interior such as Guadalajara, Monterrey, and Puebla, have undergone sharp rises in population. Education in Mexico is being decentralized and enhanced in rural areas. The increase in school enrollments during the past two decades has been dramatic. Education is mandatory from ages six through 18. Primary enrollment from 1970 through 1993 increased from less than 10 million to 15 million. In 1993, 59% of the population between the ages of six and 18 were enrolled in school. Enrollments at the secondary school level also shot up from 1.4 million in 1972 to as many as 4 million in 1993. This rapid rise occurred in higher education also. Between 1959 and 1993, college-level enrollments rose from 62,000 to 1.2 million. Education spending has risen dramatically from 2.6% of GDP in 1988 to 4% in 1993. The 1994 education budget is 4.4% of GDP. Contemporary artists, architects, writers, musicians, and dancers draw inspiration from a rich history of Indian civilization, colonial influence, revolution, and the development of the modern Mexican state. Artists and intellectuals alike emphasize the problems of social relations in a context of national and revolutionary traditions. HISTORY Highly advanced cultures, including those of the Olmecs, Mayas, Toltecs, and Aztecs, existed in Mexico long before the Spanish conquest. Hernando Cortes conquered Mexico during the period 1519-21 and founded a Spanish colony that lasted nearly 300 years. Independence from Spain was proclaimed by Father Miguel Hidalgo on September 16, 1810, and the republic was established on December 6, 1822. Prominent in the War for Independence were Father Jose Maria Morelos; General Augustin de Iturbide, who defeated the Spaniards and ruled as emperor for a short period; and General Antonio Lopez de Santa Ana, who controlled Mexican politics from 1833 to 1855. Santa Ana was Mexico's leader during the conflict with Texas, which declared itself independent from Mexico in 1836, and during Mexico's war with the United States (1846-48). The presidential terms of the venerated Benito Juarez (1858-71) were interrupted by the Hapsburg monarchy's rule of Mexico. Archduke Maximilian of Austria, whom Napoleon III of France established as Emperor of Mexico, was deposed by Juarez and executed in 1867. General Porfirio Diaz was President during most of the period between 1877 and 1910. Mexico's severe social and economic problems erupted in the 1910-20 revolution. Prominent leaders in this period--some were rivals for power--were Francisco I. Madero, Venustiano Carranza, Pancho Villa, Alvaro Obregon, Victoriano Huerta, and Emiliano Zapata. The Institutional Revolutionary Party (PRI), formed in 1929 under a different name, continues to be the most important political force in the nation. GOVERNMENT The Constitution of 1917 provides for a federal republic with powers separated into independent executive, legislative, and judicial branches. The executive is the dominant branch, with power vested in the president, who promulgates and executes the laws of the Congress. The president also legislates by executive decree in certain economic and financial fields, using powers delegated from the Congress. The president is elected by universal adult suffrage for a six-year term and may not hold office a second time. There is no vice president; in the event of the removal or death of the president, a provisional president is elected by the Congress. The next presidential election will be held in August 1994. The Congress is empowered to legislate on all matters pertaining to the national government. Congress is composed of a Senate and a Chamber of Deputies. Consecutive reelection to the Congress is prohibited; 64 senators, two from each state and the Federal District (i.e., Mexico City), are elected to six-year terms. Deputies serve three-year terms. Under constitutional and legislative reforms adopted in 1986, the Chamber of Deputies was enlarged in 1988 from 400 to 500 members. In 1994, the Senate will expand to 128 seats. In the expanded lower chamber, 300 deputies are directly elected to represent single-member districts, and 200 are selected on an at-large basis by a modified form of proportional representation. The 200 at-large seats were created to give the opposition parties more of a voice in the Chamber of Deputies. The judiciary is divided into federal and state court systems, with federal courts having jurisdiction over most civil cases and those involving major felonies. Under the constitution, trial and sentencing must be completed within 12 months of arrest for crimes that would carry at least a two-year sentence. Trial is by judge, not jury, in nearly all criminal cases. Defendants have a right to counsel, and public defenders are available. Other rights include defense against self-incrimination, the right to confront one's accusers, and the right to a public trial. Supreme Court justices are appointed by the President and approved by the Senate. Principal Government Officials President--Carlos Salinas de Gortari Foreign Minister--Manuel Tello Macias Ambassador to the U.S.--Jorge Montano Martinez Ambassador to the United Nations--Victor Flores Olea Ambassador to the OAS--Alejandro Carrillo Castro Mexico maintains an embassy in the United States at 1911 Pennsylvania Ave. NW, Washington, DC 20006 (tel. 202-728-1600). Consular offices are located at 2827 16th St. NW, 20009 (tel. 202-736-1000), and the trade office is at 1776 I St. NW, 20016 (tel. 202-728-1679). Consulates General are located in Chicago, Dallas, Denver, El Paso, Houston, Los Angeles, Miami, New Orleans, New York, San Antonio, San Diego, and San Francisco; consulates are (partial listing) in Atlanta, Boston, Detroit, Philadelphia, Seattle, St. Louis, and Tucson. POLITICAL CONDITIONS For over 60 years, Mexico's Government has been controlled by the Institutional Revolutionary Party (PRI), which has won every presidential race and most gubernatorial races. To secure its continuance in power, the PRI has, over the years, relied on extensive patronage and massive government and party organizational resources. In some cases, it has been accused of fraud. Following federal elections in 1988, a total of six parties gained representation in the Chamber of Deputies and two in the Senate. The combined opposition won an unprecedented 237 seats out of a total of 500 in the lower house and four of 64 in the upper. The center-right Party of National Action (PAN) won the governorship of the state of Baja California Norte in 1989. Since 1989, the opposition has won power in at least 10% of Mexico's municipalities. Currently, some 12 to 15 million Mexicans are governed by opposition authorities at the state and local level. In mid-term elections held in August 1991, the PRI bounced back with a major victory. It increased its representation to 320 in the Chamber of Deputies and 61 in the Senate, won numerous local and municipal offices, and based on official figures released, won several gubernatorial contests. However, the PAN has since gained two more governorships, one in 1991 in Guanajuato, where the PRI governor-elect did not take office because of accusations of fraud, and another in 1992 when a PAN candidate won the governorship of Chihuahua. President Salinas began his six-year term in 1988. Salinas, holding a doctorate from Harvard University, was Secretary of Programming and Budget in the De la Madrid Administration (1982-88), where he played a prominent role in formulating economic policy. Significant themes of the Salinas Administration have included adopting market-oriented economic policies, lowering inflation and reducing the foreign debt burden, pursuing a free trade agreement with the U.S. and Canada, opening the political system, combatting narcotics trafficking, bolstering environmental protection, and curtailing corruption and human rights abuse. President Salinas' successor will be elected in August 1994 and take office in December. The Mexican political scene was affected by two unexpected events early in 1994. In January, indigenous peasants in the state of Chiapas briefly took up arms against the government, proclaiming resistance to oppression by local elites and to governmental indifference to poverty and depressed social conditions in southern Mexico. In March, the PRI candidate to succeed Salinas as President, Luis Donaldo Colosio, was assassinated in Tijuana. The PRI nominated Ernesto Zedillo to replace Colosio as its candidate. The PAN candidate in the 1994 elections is Diego Fernandez de Cevallos and the PRD candidate is Cuauhtemoc Cardenas, son of Lazaro Cardenas, President of Mexico from 1934-40. There are six other presidential candidates running on the tickets of minor parties. The Chiapas uprising increased pressure to speed the process of political reform initiated by the Salinas Administration. In March 1994, the government entered into negotiations with the political parties to devise reforms intended to guarantee free and fair elections. Proposals included enhancing the independence of electoral authorities, restricting the use of government resources by parties, and establishing an independent prosecutor to investigate allegations of electoral fraud. ECONOMY Mexico's economic growth is vital to its political prospects and has a substantial and direct impact on the U.S. economy. Mexico is our third-ranked trading partner, purchasing about two-thirds of its imports from the United States and sending about two-thirds of its exports to the U.S. Chief U.S. exports to Mexico are motor vehicle parts, office equipment, and agricultural products; top imports from Mexico include petroleum, cars, piston engines, and coffee. The U.S. is the source of two-thirds of direct foreign investment in Mexico. Both U.S. exports and investment have increased as Mexico has progressively opened its economy. The Mexican Government has taken bold steps in recent years to restructure the economy and has made impressive progress. Monetary and fiscal discipline and a wage/price stabilization program have reduced inflation from more than 150% in 1987, to 8% in 1993, and to 7.1% in March 1994. However, Mexico ended 1993 in recession due to stagnant domestic demand, declining industrial output, and slow growth in the international economy. This trend was exacerbated by the government's strict domestic monetary and fiscal policies, which kept interest rates high. Gross domestic product (GDP) shrank in the last two quarters of 1993 and overall growth for 1993 was only 0.4%, well below original government predictions of 2.5%-3%. Growth in per-capita GDP was a negative 1.6%. The Mexican economy has gradually reduced its dependence on petroleum exports, which only accounted for 14% of 1993 exports, down from 75% in 1982. As another indication of its commitment to economic reform and trade liberalization, Mexico acceded to the General Agreement on Tariffs and Trade (GATT) in 1986. Reflecting international recognition of its enhanced economic status, Mexico also became a member of the Paris-based Organization of Economic Cooperation and Development (OECD) in April 1994. The government took steps to put public finance on a sound footing through privatizing and deregulating state-owned companies, eliminating subsidies to inefficient industries, dramatically reducing tariff rates, and shrinking Mexico's federal deficit from nearly 17% of GDP in 1987 to a federal budget surplus equal to 0.7% of GDP in 1993. The privatization process is nearly complete: The number of enterprises owned by the Mexican Government (parastatals) has dropped from 1,155 in 1982 to 210 at the end of 1993. Twelve more parastatals are in the process of being sold. On December 17, 1992, the U.S., Mexico, and Canada signed the historic North American Free Trade Agreement (NAFTA), which went into effect January 1, 1994. NAFTA will generate economic growth in all three countries by eliminating restrictions on the flow of goods, services, and investment in North America. This includes phasing out tariffs over a period of up to 15 years, elimination (as far as possible) of non-tariff barriers, and full protection of intellectual property rights (patents, copyrights, and trademarks). The agreement also includes provisions covering trade rules and dispute settlement. NAFTA marks the first time in the history of U.S. trade policy that environmental concerns have been addressed in a comprehensive trade agreement. In addition, the parallel labor agreement with NAFTA reflects concerns about Mexican worker's rights. NAFTA also serves as a basis for enhancing on-going U.S.-Mexico cooperation on a host of issues. As the two countries stand on the threshold of the 21st century, cooperation on issues such as migration, environmental pollution, and narcotics control--which do not respect national borders--is of critical importance. Agriculture Mexico's agrarian reform program began with the revolution, when land was distributed to landless farmers. Agrarian reform caused land fragmentation and lack of capital investment, since the land could not be used as collateral. This, combined with poor soil, lack of rainfall, and rural population growth has made it difficult to raise the productivity and living standards of subsistence farmers. Mexico's agricultural sector continues to experience extraordinary adjustment problems as the government seeks to move policy away from import substitution and self-sufficiency to a market-oriented and competitive industry. High interest rates for agricultural loans have compounded the difficulty for producers. These adjustments have led to a sharp decline in productivity. Agriculture accounted for only 6.5% of Mexico's GDP in 1993, compared to 7.7% in 1991. In addition, the number of agricultural workers is expected to drop from 6 million to 2 million over the next generation. In an effort to raise rural productivity and living standards, President Salinas introduced major reforms to Article 27 of the Mexican Constitution in 1992 which allow for the transfer of ownership of communal land to the farmers cultivating it. These reforms permit farmers to sell their land or use it as loan collateral. The reforms also loosened restrictions on corporate land ownership, opening the way for larger farms (and therefore economies of scale). Tangible benefits have yet to be seen from these reforms, however, because implementation has been slow. In the past, the government encouraged production of basic crops such as corn and beans by maintaining support prices for these products, which were up to two-and-a-half times higher than world prices. In order to rationalize its agricultural sector, Mexico is abandoning its support price scheme. The government intends to phase out most of its support for the agricultural sector over the 15-year NAFTA phase-in period. To ease hardships among farmers resulting from such structural changes, Mexico has introduced PROCAMPO, an innovative rural support program. Over the next 15 years, PROCAMPO will provide the approximately 3.5 million farmers who produce basic commodities (approximately 64% of all farmers) with a fixed payment per hectare of cropland. Because the payments are based on the amount of land farmed, farmers will now have the choice of either basing production decisions on whatever crop is most profitable in a free market environment or exiting farming altogether. Energy and Minerals The discovery of extensive oil fields in the coastal regions along the Gulf of Mexico in 1974 enabled Mexico to become self-sufficient in crude oil and to export significant amounts. New reserves discovered in 1993 added 50 million barrels to Mexico's estimated 48 billion barrel reserves (about 7% of the world's proven reserves). Total hydrocarbon reserves, including natural gas, are estimated to equal another 65 billion barrels of crude. With crude oil production averaging 2.7 million barrels per day during 1993, Mexico ranks as the world's fifth-largest oil producer. About half of the oil is refined and consumed domestically, leaving the remainder for export. The U.S. is Mexico's most important oil export market, accounting for 66% of all exports by volume in 1993. Mexico is also rich in mineral and energy resources, and mineral exports are an important element in foreign trade. A leading producer of silver, sulfur, lead, and zinc, Mexico also produces gold, copper, manganese, coal, and iron ore. New business opportunities are expected to open up in Mexico's energy sector for foreign energy firms. The state-owned monopolies which dominate the Mexican energy sector, PEMEX (the oil company) and CFE (the Federal Electricity Commission) are undergoing far-reaching restructuring and are increasingly allowing limited participation by the domestic and foreign private sector. Under NAFTA, PEMEX will retain its constitutional monopoly over petroleum exploration, production, refining, and basic petrochemicals, but the treaty will expand U.S. firms' access to Mexico's petrochemical, gas and energy services, and equipment markets. NAFTA also provides significant opportunities to sell to PEMEX under open and competitive bidding rules; it also immediately lifts trade and investment restrictions on most petrochemicals. Manufacturing and Foreign Investment Manufacturing has been hard hit by 1993's stagnant domestic demand, increased international competition, a sharp drop in the growth of private sector investment, and negative growth in public sector investment. Mexico's manufacturing sector accounts for 23% of the GDP and 11% of jobs; this negative growth in manufacturing during 1993 (minus 1.5%) largely explains the overall poor performance of the 1993 economy. On the other hand, important gains were made in the production of cement, aluminum, synthetic fibers, chemicals, fertilizers, petrochemicals, and paper. The automobile industry has become one of Mexico's most important industrial and export sectors and is the sector best positioned to benefit from NAFTA. Although the auto industry slowed like the rest of the manufacturing sector in 1993, Mexican auto exports have ballooned 37% in the first two months of 1994 alone, rising from 55,000 cars and trucks in January and February of 1993 to 75,590 in 1994. Mexico made sweeping revisions of its foreign investment regulations in 1989, which included explicit permission for foreigners to have majority ownership in companies. In December 1993, Mexico passed a new foreign investment law intended to promote competitiveness, offer juridical certainty for foreign investment in Mexico, and establish clear rules for channeling international capital into productive activities. The new law permits foreigners to own non-residential property in the "restricted zones"-- 100 kilometers (62 miles) from the border and 50 kilometers from the coasts. Residential property in the zones must still be acquired via a trust through a Mexican financial institution. Total foreign investment in 1993 was about $16 billion, up 87% from 1992. Key sectors of the economy, including energy, power generation, and railroads, remain restricted to Mexican state ownership. Transportation and Communications The Salinas Administration is attempting to modernize infrastructure and services, deregulate and develop more efficient transport systems, and privatize all sectors allowed under the constitution. Mexico's land transportation network is one of the most extensive in Latin America. Under the Salinas Administration, over 4,000 kilometers (2,400 miles) of four-lane highway have been built through government concessions to private sector contractors. Tampico and Veracruz on the Gulf of Mexico are Mexico's two primary ports. Recognizing that the low productivity of Mexico's 79 ports poses a threat to trade development, the government plans to privatize port operations to improve their efficiency. A number of international airlines serve Mexico, with direct or connecting flights from most major cities in the United States, Canada, Europe, and Japan. Most Mexican regional capitals and resorts have direct air service to Mexico City or the United States. The 36,000 kilometers (22,000 miles) of railroads are government owned. Mexico has taken significant steps to modernize its telecommunications system. A key element was the privatization in 1990 of the national telephone company, Telefonos de Mexico (TELMEX), which was sold to a consortium of Mexican investors, Southwestern Bell, and France Telcom. This privatization has meant an increased rate of infrastructure enhancement. In addition, eight regional companies are providing cellular telephone service to various parts of Mexico, resulting in a dramatic expansion of cellular telephone users. Two larger communications satellites have been ordered to replace the two currently in use. The government has also opened the telecommunications sector to further foreign investment. Starting in 1997, long-distance telecommunications service will be a competitive industry in Mexico. FOREIGN RELATIONS The Government of Mexico has sought to maintain its interests abroad and project its influence largely through moral persuasion and selective economic assistance. In particular, Mexico champions the principles of non-intervention and self-determination. In its efforts to revitalize Mexico's economy and open it to international competition, the Salinas Administration has sought closer relations with the U.S., Western Europe, and the Pacific Basin. While past Mexican and U.S. policies have differed over regional conflicts in Central America, both countries agree on the ultimate goal of establishing a lasting peace based on economic and social justice and democracy. To that end, Mexico is participating in a number of recent regional initiatives to promote peace, democratization, and economic development in Central America. Mexico actively participates in several international organizations. It is a strong supporter of both the UN and OAS systems, and also pursues its interests through a number of ad hoc international bodies. Mexico has been selective in its membership in other international organizations. To date, it has declined to become a member of the Organization of Petroleum Exporting Countries and the Nonaligned Movement. Nevertheless, Mexico acceded to the General Agreement on Tariffs and Trade (GATT) in 1986. In April 1994, Mexico became a member (and the first Latin American member) of the Organization for Economic Cooperation and Development, along with the major developed nations of the world. It joined the Asia Pacific Economic Cooperation (APEC) forum in November 1993. U.S.-MEXICAN RELATIONS U.S. foreign relations with Mexico are among its most important and complex. They are shaped by a mixture of mutual interests, shared problems, growing interdependence, and differing national perceptions. Historical factors, cultural differences, and economic disparities add further intricacy to the relationship. The scope of U.S.-Mexican relations goes far beyond diplomatic and official contacts; it entails extensive commercial, cultural, and educational ties. Along our 2,000-mile (shared border, state and local governments interact closely. The two countries cooperate to resolve many issues, including trade, finance, narcotics, immigration, environment, science and technology, and cultural relations. An independent, strong, and economically healthy Mexico is a fundamental U.S. interest. Both governments actively discuss ways to improve cooperation on an array of bilateral issues. Since 1981, this process has been formalized in the U.S.-Mexico Binational Commission, composed of several U.S. cabinet members and their Mexican counterparts. The Commission holds annual plenary meetings, and many sub-groups meet during the course of the year to discuss a range of topics, including trade negotiations and investment opportunities, financial cooperation, narcotics, migration, law enforcement, cultural relations, education, border cooperation, environment, labor, agriculture, housing and urban development, fisheries, and tourism. U.S. Embassy Officials Ambassador--James R. Jones Deputy Chief of Mission--David R. Beall Minister-Counselor for Political Affairs--Theodore S. Wilkinson Minister-Counselor for Economic Affairs--Daniel L. Dolan Counselor for Labor Affairs--Richard Booth Minister-Counselor for Public Affairs (USIS)--William Dietrich Minister-Counselor for Consular Affairs--Bruce Beardsley Consul General--Kathleen Mullen Counselor for Scientific and Technological Affairs--Ahmed Meer Counselor for Commercial Affairs--Carlos Poza, Acting Consuls General and Consuls Consulate General, Ciudad Juarez--Richard Peterson Consulate General, Guadalajara--John P. Jurecky Consulate, Hermosillo--Gregory Frost Consulate, Matamoros--Janice Jacobs Consulate, Merida--David Van Valkenberg Consulate General, Monterrey--Jake Dyels Consulate, Nuevo Laredo--Mary Daniel Consulate General, Tijuana--Edwin Cubbison Consular Agents Acapulco--Lambert J. Urbanek Cabo San Lucas--Robin A. Hanni Cancun--Lorraine H. Lara Mazatlan--Jerianne Nelson Gallardo Oaxaca--Mark A. Leyes Puerto Vallarta--Jeanette McGill San Luis Potosi--Kathleen C. Reza San Miguel de Allende--Philip Maher Tampico--Mary Elizabeth Alzaga Veracruz--Edwin L. Culp The U.S. embassy in Mexico is located at Paseo de la Reforma 305, 06500 Mexico, DF. Tel. (from the U.S.): 011-52-5-211-0042. U.S.-Mexican Cooperation on the Environment The Governments of the United States and Mexico are concerned about improving the environment and conserving natural resources in both countries. Particularly in the border areas, they face serious environmental problems caused by rapid population growth, urbanization, and industrialization. Cooperative efforts between the U.S. and Mexico to deal with these problems take place under the 1983 La Paz agreement. There are currently six working groups under this agreement addressing water quality, air pollution, waste disposal, emergency response, enforcement, and pollution prevention. Other bilateral agreements address wildlife, parks, forests, and other conservation areas. The International Boundary and Water Commission implements the 1944 Water Treaty with Mexico, relating to border sanitation problems. The Integrated Environmental Plan for the Mexican-U.S. Border Area, covering 1992-94, comprises a detailed review of border conditions and specific proposals to solve pr! oblems. As a result of the Enviro nmental Agreement negotiated as part of the NAFTA package, the U.S., Mexico, and Canada have established a North American Commission on Environmental Cooperation which will strengthen environmental laws and address common environmental concerns. Also established by executive agreement in November 1993 are a Border Environmental Cooperation Commission (BECC) to facilitate the development of environmental infrastructure, and a North American Development Bank to help finance BECC projects. International Boundary and Water Commission Preceded by several short-term commissions to survey and mark the boundary after its creation in 1848 and modification in 1853, the International Boundary Commission was established as a permanent, joint commission by treaty in 1889. The Water Treaty of 1944 extended its authority to the land boundary and added to its responsibilities the boundary water problems which were becoming more important at that time. The 1944 treaty renamed the body the International Boundary and Water Commission, United States and Mexico (IBWC). It also required that the U.S. and Mexican commissioners be engineers. The IBWC has a wide range of responsibilities and specific programs for solution of U.S.-Mexican water and boundary problems. These include distribution between the two countries of the waters of the Colorado River and the Rio Grande; joint operation of international dams on the Rio Grande to control floods, conserve waters, and generate electricity; other joint flood control works along boundary rivers; solution of border water quality control problems; and stabilization of the river boundaries. These responsibilities and programs are carried out in accordance with various treaties and agreements. The IBWC has successfully resolved many difficult and long-standing problems. For example, the Chamizal Settlement of 1963 resolved a 100-year-old dispute at El Paso/Ciudad Juarez by exchange of territory and rechanneling the Rio Grande. A permanent solution to the international problem related to the salinity of the Colorado River was reached in 1973. Since the early 1980s, the IBWC has focused on troublesome border sanitation problems and has been studying groundwater resources along the boundary. The IBWC is expected to have a strong complementary relationship with the Border Environment Cooperation Commission and the North American Development Bank, established under a NAFTA parallel agreement. Published by the U.S. Department of State -- Bureau of Public Affairs -- Office of Public Communication -- Washington, DC, April 1994 -- Managing Editor: Peter Knecht Department of State Publication 7365 -- Background Note Series Contents of this publication are not copyrighted unless indicated. If not copyrighted, the material may be reproduced without consent; citation of the publication as the source is appreciated. Permission to reproduce any copyrighted material (including photos and graphics) must be obtained from the original source. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC, 20402.