United States
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Mexico's Plan Merida in doubt
6/5/2008
EVENT |
| The US administration has accused Congress of blocking a three-year aid package to Mexico, intended to help stem the flow of drugs and arms across the mutual border. |
United States Drug Policy Director John Walters on 3 June called on Congress to remove provisions hindering the acceptance of the US funding by Mexico, warning that this could derail the entire aid package.
The aid package, known as the Merida initiative, was originally planned to total USD500 million for the current fiscal year (ending in September) but has since been scaled down by Congress to between USD350 million and USD400 million.
FORECAST |
| The delay or potential cancellation of the Merida aid package would have negative consequences for both Mexico and the US. The plan was intended to provide military aid, which will be used by Mexico to strengthen border controls. The aim is to crack down on the current upswell of drug-related violence in Mexico's border areas, as well as to disrupt the flow of drugs into the US, the major destination market. It is the surging demand for drugs in the US that drives the market moves of Mexico's drug cartels. Without greater funding for border security, this drugs flow will continue unabated. |
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