Research Library

Sen. Xochitl Gálvez, the Mexican opposition nominee for president, chose to visit a suburb north of Houston for her first campaign event abroad. Research scholar Rodrigo Montes de Oca explains why it was a smart choice — and what the visit shows about the dark horse candidate.

Despite the many potential challenges — including difficulties conserving water, using clean energy and dealing with the López Obrador administration — Tesla will most likely move forward with the construction of a “gigafactory" in Mexico. In this issue brief, fellow David Gantz explains why the benefits outweigh the risks.

Driven by the USMCA trade agreement and seeking to reduce supply chain disruptions, Chinese companies are setting up shop in Mexico, closer to major U.S. markets. In this issue brief, fellow David Gantz explains the pressures behind this investment and the likely impacts on the North American economy.

A pledge to boost regional competitiveness is a welcome outcome of last month's North American Leaders’ Summit. But the region’s policymakers should remember the lessons of the past as they work to do so, writes fellow David A. Gantz.

Despite U.S. officials’ attempts to persuade Mexican President Andrés Manuel López Obrador to change course on his energy policy, which violates key provisions of the USMCA, his administration has not backed down, the authors write. They explain where the disputes between the U.S. and Mexico currently stand and what they mean for other aspects of the binational relationship.

By refusing to go along with an increased consumer subsidy fully available only for EVs and batteries produced in the U.S. with union labor, Sen. Manchin (perhaps with the assistance of Canada's government) has saved the U.S. government from what could have been a mortal blow to an integrated North American industry.

Although Mexican President Andrés Manuel López Obrador is confident that measures implemented in the first half of his tenure will help Mexico to achieve energy self-sufficiency, his optimism must be weighed against the evidence, writes nonresident scholar Adrian Duhalt. In this brief, Duhalt explains the flaws in López Obrador’s plan and why Mexico is unlikely to achieve energy self-sufficiency anytime soon.

President Andrés Manuel López Obrador’s investment policies, which aim to return Mexico to the protectionist, state-led policies of the 1960s and 1970s, seem almost certain to stagnate the country’s economy.

Although once known for its robust urea and ammonia production capabilities, Mexico found itself particularly vulnerable to soaring international fertilizer prices in 2021. With the global circumstances surrounding the spike in prices likely to linger through 2022, and Mexico's state-owned infrastructure still hampered by technical issues, the impact could be borne all the way to dinner tables in the form of higher nutrient prices for local farmers and food inflation.

Introduction

The major drivers of Mexico’s outlook in 2022 will be 1) growing political polarization and social conflict…