MEXICO COUNTRY REPORT 1 TABLE OF CONTENTS Contents Page Executive Summary 6 Mexico Area Map 7 Key Information 8 Mexico Regional Map 10 Mexico Transportation Map 11 Political Overview 12 U.S.- Mexico Relations 40 U.S.- Mexico Border 42 Political Risk Index 44 Political Stability Index 45 Freedom Rating Index 46 Human Rights Index 47 Government Overview 50 Government Background 50 Executive Authority 50 Legislative Authority 50 Judicial Authority 50 Government Structure 51 Country Names 51 Governing Method 51 Executive Branch 51 Head of Government 51 Cabinet 51 Legislative Branch 51 Judicial Branch 52 Constitution Ratified 52 Legal System 52 Suffrage 52 Administrative Divisions 52 Mexico Government Officials 52 Foreign Relations Overview 54 General Relations 54 Regional Relations 54 Other Significant Relations 55 National Security Overview 61 External Threats 61 Crime 61 Insurgencies 62 Terrorism 62 Defense Forces 63 Military Data 63 2 Military Branches 63 Eligibility Age 63 Mandatory Service Terms 63 Manpower 63 Current Strength 63 Military Expenditures 63 Economic Overview 64 Brief Overview 64 Macroeconomic Data 67 Nominal GDP and Components 67 Population and GDP Per Capita 67 Real GDP and Inflation 67 Government Spending and Taxation 67 Money Supply, Interest Rates and Unemployment 68 Foreign Trade and the Exchange Rate 68 Data in US Dollars 68 Energy Data 69 Energy Consumption and Production Standard Units 69 Energy Consumption and Production QUADS 69 World Energy Price Summary 70 CO2 Emissions 70 Metals Data 71 Metals Consumption and Production 71 World Metals Pricing Summary 72 Agriculture Data 73 Agriculture Consumption and Production 73 World Agriculture Pricing Summary 73 Investment Overview 74 Foreign Investment Climate 74 Background 74 Foreign Investment Assessment 74 Labor Force 77 Agriculture Industry 77 Import Commodities and Partners 77 Export Commodities and Partners 78 Telephone System 78 Internet Users 78 Roads, Airports, Ports and Harbors 78 Legal System and Consideration 78 Corruption Perception Ranking 79 Cultural Consideration 79 Foreign Investment Index 80 Corruption Perception Index 80 Competitive Ranking Index 81 Taxation 82 3 Social Overview 83 Cultural Demography 83 Religion 83 Ethnicity 83 Language 83 Education 83 Human Development Index 85 Life Satisfaction Index 86 Happy Planet Index 87 Global Gender ap Index 89 Cultures and Arts 90 Music 90 Art 92 Literature 93 Cuisine 94 Cultural Etiquette 96 Cultural Do's and Don'ts 96 Foreign Travel Information 98 Checklist for Travelers 98 Tips for Travelers 99 Business Culture: Information for Business Travelers 100 Online Resources Regarding Entry Requirements and Visas 101 Useful Online Resources for Travelers 102 Other Practical Online Resources for Travelers 103 Diplomatic and Consular Information 104 Safety and Security 104 Other Safety and Security Online Resources for Travelers 104 Disease and Health Information 106 Health Information for Travelers to Mexico 106 CDC Recommends the Following Vaccines 106 Do's to stay Healthy 107 To Avoid Getting Sick 107 What You Need To Bring with You 107 After You Return Home 108 Environment Overview 109 General Information 109 Current Issues 109 Natural Hazards 109 Environmental Policy 109 Regulation and Jurisdiction 109 Major Non-Governmental Organizations 109 International Environmental Accords 110 Global Environmental Snapshot 111 Global Environmental Concepts 113 Crime Overview 134 Mexico Security Threat Level 134 4 Gang Impact 134 Incident Reports 138 Cabo San Lucas Regional Information 144 Executive Summary 144 Government 145 Areas of Interests 152 Cuisine 153 Cabo San Lucas Advisories and Crime 154 5 EXECUTIVE SUMMARY Mexico is the most populous Spanish-speaking country in the world and the second most-populous country in Latin America after Portuguese-speaking Brazil. Highly developed cultures, including the Olmec, Maya, Toltec, and Aztec, existed long before Spain conquered Mexico in 1521. Mexico was a Spanish colony for 300 years until 1821 when it formally achieved independence. For 70 years, Mexico’s national government was dominated by the Institutional Revolutionary Party, or PRI, which won every presidential race until the July 2000 presidential election when Vicente Fox became the first president to come from the opposition. President Fox completed his term on Dec. 1, 2006, and he was succeeded by Felipe Calderon. Mexico is endowed with substantial natural resources, and is a major oil producer and exporter. The Mexican economy is highly dependent on exports to the United States, which account for about 90 percent of its total exports. Mexico has undergone a profound economic transformation since the mid-1990s as a result of economic liberalization and its joining the North American Free Trade Agreement (a free trade bloc with the U.S. and Canada also known as NAFTA). There has been rapid and impressive progress in building a modern, diversified economy, improving infrastructure, and tackling poverty. Today, the country enjoys a more open economic and political system and is more integrated with the world economy. Note that since 2010, Mexico has plagued by rampant violence and crime at the hands of narcotics traffickers and cartels, as well as drug gangs. The degree of criminality affecting broad swaths of Mexico has raised questions about the Mexican government's ability to adequately deal with rampaging drug gangs who have turned portions of the country into lawless enclaves. Indeed, in the first part of 2010 alone, more than 7,000 people have died in drug- related violence in Mexico, while approximately 25,000 people died in drug-related violence for the previous three and a half years, according to Mexico's Office of the Attorney General. For his part, then-President Calderon interpreted the rising rate of bloodshed in the most favorable manner by saying it showed that the drug cartels were under pressure from his government's crackdown. To that end, he drew attention to the fact that in the same three and a half year period, thousands of troops had been deployed at key locations across the country, 75,000 weapons had been decommissioned, and 78,000 people had been detained on narcotics-associated operations. Nevertheless, President Calderon simultaneously warned that drug gangs and cartels are intent on imposing their own authority in pockets across Mexico. Not surprisingly, anxiety was on the rise as Mexicans worried about the "Colombianization" of the ongoing drug war in their own country. The election of President Enrique Pena Nieto in 2012 has not significantly influenced the general climate of lawlessness and turmoil that Mexico has grappled with in recent times as a result of narcotics gangs. Indeed, the case of more than 40 missing students at the hands of drug gangs in late 2014 was a reminder of the continued plague of narcotics-centered terrorism in Mexico. In 2015, irrespective of President Pena Nieto's failure to deal with the gruesome violence plaguing the country at the hands of narcotics traffickers, his ruling party, the PRI, claimed victory in parliamentary elections. 6 Mexico Area Map 7 Key Information Notable Cities City Population Estimated Ecatepec 1,806,226 Iztapalapa 1,820,888 Mexico City 12,294,193 Fast Facts Region: North America and Middle/ Central America Population: 121,116,960 (as of 2017) Area Total: 1,972,550 km2 Area Land: 1,923,040 km2 Coast Line: 9330 km Capital: Mexico City Climate: Varies from tropical to desert Languages: Spanish Various Mayan dialects Currency: 1 new Mexico peso (Mex$)= 100 centavos; 1 U.S. Dollar (USD) = 19 Pesos (MXN) The Pesos has dropped 3.2 points since 2015 Holiday: Independence Day is 16 September (1810); Constitution Day is 5 February Cinco De Mayo is 5 May Average Daily Temperature January: 13.30°C / 55.90°F July: 16.70°C / 62.06°F Annual Rainfall: 762mm / 30" Boundaries United States: 3326km Guatemala: 962km Mexico: 250km 8 Ethnic Divisions Mestizo 60% Indigenous 30% European Descent 9% Other 1% Religions Roman Catholic 89% Protestant 6% Other 5% 9 Mexico Regional Map 10 Mexico Transportation Map 11 POLITICAL OVERVIEW Mexico was the site of some of the earliest civilizations in the western hemisphere. Archaeological evidence suggests that the area was populated by hunting peoples as early as 21,000 before the common ear, or B.C.E., and by agriculturalists in 8,000 of the common era, or C.E. A number of highly advanced cultures inhabited Mexico prior to the Spanish conquest, the most well known today being the Olmecs, the Mayas, the Toltecs and the Aztecs. When Spaniards landed in Mexico in the early 16th century, they encountered the great cities and intricate social and political structures of the Aztec Empire throughout the valley of Mexico. During the period from 1519 to 1521, Spaniard Hernan Cortes led the conquest of Mexico and claimed the territory as a Spanish colony. In the period from 1535 to 1821, 61 Spanish viceroys ruled the colony. The Spanish government implemented the "encomienda system," which granted large pieces of land to Spanish nobles, priests and soldiers. The Native American majority became the subjugated laboring class under the encomienda system, and although reforms to the system were decreed by Spain, they were largely ineffective because of the difficulty of enforcement. The result was the development of rigid social classes that ran along ethnic lines. Native Americans, mestizos, black slaves and freed slaves made up the bottom segment of the population. The European population made up the top echelon, but within this segment, there were other divisions. Those born and raised in Spain, the peninsulares, of pure European descent, held the highest colonial offices and were elevated above the criollos, who were born and raised in Mexico. The colonial administration was rife with inefficiency and corruption, and by the 19th century, growing criollo resentment weakened the link between the colony and Spain. Factional struggles between peninsulares and criollos as well as opposition to the subjugation of the Native American population stimulated a political rebellion, and on Sept.