Research Library

The Trans-Pacific Partnership Agreement offers an opportunity to deepen U.S.-Mexico economic ties without reopening the still contentious North American Free Trade Agreement for negotiation. It may also serve as a vehicle for advancing the current Mexican government’s economic reform agenda. The leaders of the U.S. and Mexico believe that the TPP will bolster domestic economic growth.

North America is emerging as a virtual supply center of the international energy market, a development that has implications for the economic and geopolitical stature of the entire continent.

This working paper constructs a new general equilibrium model of the U.S. economy that is better able to analyze energy and gross receipts taxes than previous models.

This issue brief proposes a framework for awarding bids in a public tender for exploration blocks. The context for the proposal is Mexico’s energy reform of 2013-2014.

Twenty years after NAFTA came into force, Mexico is more dependent than ever on food imports. Energy reforms could help change that.

Under proposed legislation to implement Mexico’s energy reforms, Pemex will remain a privileged state operator supporting exploration and production in most of the country's proven onshore and shallow water fields. It is not known if energy reform will effectively turn Pemex into a firm able to compete without policy bias against private investors.

Energy regulation under Mexico's energy-sector reforms are of great interest to investors, since autonomous regulators—protected from political pressures and able to make and sustain technical decisions—can guarantee greater legal consistency than government authorities exposed to political pressures. The difficulty was finding an alternative model that ensured the institutional strengthening of the agencies without relinquishing too much control of the executive branch.

Talk of a “pivot to Asia” that supposedly would mark President Obama’s second term is “misplaced and even simplistic,” writes fellow Kristian Coates Ulrichsen. In a globalized world, “key U.S. relationships with strategic and commercial partners … cannot be addressed in isolation from one another. The convergence of U.S. ties and Asian ties with the Middle East is a case in point highlights how regions and issues are interconnected as never before.”

Fossil fuel subsidies have allowed energy exporting countries to distribute resource revenue, bolstering legitimacy for governments, many of which are not democratically elected. But subsidy benefits are dwarfed by the harmful consequences of encouraging uneconomic use of energy. Now, with consumption posing a threat to long-term exports, governments face a heightened need to raise prices that have come to be viewed as entitlements. While reforms of state benefits are notoriously politically dangerous, previous experience shows that subsidies can be rolled back without undermining government legitimacy — even in autocratic settings — given proper preparation.

The violent struggle between rival Mexican drug cartels and other criminal groups has left tens of thousands dead and towns across Mexico paralyzed with fear. With overwhelmed police forces relatively powerless to control drug-related murders and kidnappings, a growing number of vigilante organizations, or self-defense groups, aim to restore order — but now even they are fighting, and killing, among themselves.