Mexico vs. Guatemala

The site of several advanced Amerindian civilizations - including the Olmec, Toltec, Teotihuacan, Zapotec, Maya, and Aztec - Mexico was conquered and colonized by Spain in the early 16th century. Administered as the Viceroyalty of New Spain for three centuries, it achieved independence early in the 19th century. Elections held in 2000 marked the first time since the 1910 Mexican Revolution that an opposition candidate - Vicente FOX of the National Action Party (PAN) - defeated the party in government, the Institutional Revolutionary Party (PRI). He was succeeded in 2006 by another PAN candidate Felipe CALDERON, but Enrique PENA NIETO regained the presidency for the PRI in 2012. Left-leaning antiestablishment politician and former mayor of Mexico City (2000-05) Andres Manuel LOPEZ OBRADOR, from the National Regeneration Movement (MORENA), became president in December 2018.

The global financial crisis in late 2008 caused a massive economic downturn in Mexico the following year, although growth returned quickly in 2010. Ongoing economic and social concerns include low real wages, high underemployment, inequitable income distribution, and few advancement opportunities for the largely indigenous population in the impoverished southern states. Since 2007, Mexico's powerful drug-trafficking organizations have engaged in bloody feuding, resulting in tens of thousands of drug-related homicides.

tsunamis along the Pacific coast, volcanoes and destructive earthquakes in the center and south, and hurricanes on the Pacific, Gulf of Mexico, and Caribbean coasts

volcanism: volcanic activity in the central-southern part of the country; the volcanoes in Baja California are mostly dormant; Colima (3,850 m), which erupted in 2010, is Mexico's most active volcano and is responsible for causing periodic evacuations of nearby villagers; it has been deemed a Decade Volcano by the International Association of Volcanology and Chemistry of the Earth's Interior, worthy of study due to its explosive history and close proximity to human populations; Popocatepetl (5,426 m) poses a threat to Mexico City; other historically active volcanoes include Barcena, Ceboruco, El Chichon, Michoacan-Guanajuato, Pico de Orizaba, San Martin, Socorro, and Tacana; see note 2 under "Geography - note"

numerous volcanoes in mountains, with occasional violent earthquakes; Caribbean coast extremely susceptible to hurricanes and other tropical storms

volcanism: significant volcanic activity in the Sierra Madre range; Santa Maria (3,772 m) has been deemed a Decade Volcano by the International Association of Volcanology and Chemistry of the Earth's Interior, worthy of study due to its explosive history and close proximity to human populations; Pacaya (2,552 m), which erupted in May 2010 causing an ashfall on Guatemala City and prompting evacuations, is one of the country's most active volcanoes with frequent eruptions since 1965; other historically active volcanoes include Acatenango, Almolonga, Atitlan, Fuego, and Tacana; see note 2 under "Geography - note"

note 1: strategic location on southern border of the US; Mexico is one of the countries along the Ring of Fire, a belt of active volcanoes and earthquake epicenters bordering the Pacific Ocean; up to 90% of the world's earthquakes and some 75% of the world's volcanoes occur within the Ring of Fire

note 2: some of the world's most important food crops were first domesticated in Mexico; the "Three Sisters" companion plants - winter squash, maize (corn), and climbing beans - served as the main agricultural crops for various North American Indian groups; all three apparently originated in Mexico but then were widely disseminated through much of North America; avocado, amaranth, and chili peppers also emanate from Mexico, as does vanilla, the world's most popular aroma and flavor spice; although cherry tomatoes originated in Ecuador, their domestication in Mexico transformed them into the larger modern tomato

note 3: the Sac Actun cave system at 348 km (216 mi) is the longest underwater cave in the world and the second longest cave worldwide, after Mammoth Cave in the United States (see "Geography - note" under United States)

note 4: the prominent Yucatan Peninsula that divides the Gulf of Mexico from the Caribbean Sea is shared by Mexico, Guatemala, and Belize; just on the northern coast of Yucatan, near the town of Chicxulub (pronounce cheek-sha-loob), lie the remnants of a massive crater (some 150 km in diameter and extending well out into the Gulf of Mexico); formed by an asteroid or comet when it struck the earth 66 million years ago, the impact is now widely accepted as initiating a worldwide climate disruption that caused a mass extinction of 75% of all the earth's plant and animal species - including the non-avian dinosaurs

note 1: despite having both eastern and western coastlines (Caribbean Sea and Pacific Ocean respectively), there are no natural harbors on the west coast

note 2: Guatemala is one of the countries along the Ring of Fire, a belt of active volcanoes and earthquake epicenters bordering the Pacific Ocean; up to 90% of the world's earthquakes and some 75% of the world's volcanoes occur within the Ring of Fire

Mexico's $2.4 trillion economy - 11th largest in the world - has become increasingly oriented toward manufacturing since the North American Free Trade Agreement (NAFTA) entered into force in 1994. Per capita income is roughly one-third that of the US; income distribution remains highly unequal.

Mexico has become the US' second-largest export market and third-largest source of imports. In 2017, two-way trade in goods and services exceeded $623 billion. Mexico has free trade agreements with 46 countries, putting more than 90% of its trade under free trade agreements. In 2012, Mexico formed the Pacific Alliance with Peru, Colombia, and Chile.

Mexico's current government, led by President Enrique PENA NIETO, has emphasized economic reforms, passing and implementing sweeping energy, financial, fiscal, and telecommunications reform legislation, among others, with the long-term aim to improve competitiveness and economic growth across the Mexican economy. Since 2015, Mexico has held public auctions of oil and gas exploration and development rights and for long-term electric power generation contracts. Mexico has also issued permits for private sector import, distribution, and retail sales of refined petroleum products in an effort to attract private investment into the energy sector and boost production.

Since 2013, Mexico's economic growth has averaged 2% annually, falling short of private-sector expectations that President PENA NIETO's sweeping reforms would bolster economic prospects. Growth is predicted to remain below potential given falling oil production, weak oil prices, structural issues such as low productivity, high inequality, a large informal sector employing over half of the workforce, weak rule of law, and corruption. Mexico's economy remains vulnerable to uncertainty surrounding the future of NAFTA - because the United States is its top trading partner and the two countries share integrated supply chains - and to potential shifts in domestic policies following the inauguration of a new a president in December 2018.

Guatemala is the most populous country in Central America with a GDP per capita roughly half the average for Latin America and the Caribbean. The agricultural sector accounts for 13.5% of GDP and 31% of the labor force; key agricultural exports include sugar, coffee, bananas, and vegetables. Guatemala is the top remittance recipient in Central America as a result of Guatemala's large expatriate community in the US. These inflows are a primary source of foreign income, equivalent to two-thirds of the country's exports and about a tenth of its GDP.

The 1996 peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, and Guatemala has since pursued important reforms and macroeconomic stabilization. The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) entered into force in July 2006, spurring increased investment and diversification of exports, with the largest increases in ethanol and non-traditional agricultural exports. While CAFTA-DR has helped improve the investment climate, concerns over security, the lack of skilled workers, and poor infrastructure continue to hamper foreign direct investment.

The distribution of income remains highly unequal with the richest 20% of the population accounting for more than 51% of Guatemala's overall consumption. More than half of the population is below the national poverty line, and 23% of the population lives in extreme poverty. Poverty among indigenous groups, which make up more than 40% of the population, averages 79%, with 40% of the indigenous population living in extreme poverty. Nearly one-half of Guatemala's children under age five are chronically malnourished, one of the highest malnutrition rates in the world.

with a large population and relatively low broadband and mobile penetration, Mexico's telecom sector has potential for growth; adequate telephone service for business and government; improving quality and increasing mobile cellular availability, with mobile subscribers far outnumbering fixed-line subscribers; relatively low broadband and mobile penetration, potential for growth and international investment; extensive microwave radio relay network; considerable use of fiber-optic cable and coaxial cable; 5G development slow given the existing capabilities of LTE; IXP in Mexico City; exporter of computers and broadcasting equipment to USA, and importer of same from China (2021)

due to years of underinvestment in infrastructure, has one of the lowest fixed-line tele densities in the region; rural areas rely on mobile services with little access to fixed-line access; mobile tele-density on par with region and is the most developed sector, with near universal phone connections; private investment to bring free Internet to parks; two submarine cables due for completion will support growth in fixed and mobile broadband (2021)

abundant rainfall in recent years along much of the Mexico-US border region has ameliorated periodically strained water-sharing arrangements; the US has intensified security measures to monitor and control legal and illegal personnel, transport, and commodities across its border with Mexico; Mexico must deal with thousands of impoverished Guatemalans and other Central Americans who cross the porous border looking for work in Mexico and the US; Belize and Mexico are working to solve minor border demarcation discrepancies arising from inaccuracies in the 1898 border treaty

annual ministerial meetings under the Organization of American States-initiated Agreement on the Framework for Negotiations and Confidence Building Measures continue to address Guatemalan land and maritime claims in Belize and the Caribbean Sea; Guatemala persists in its territorial claim to half of Belize, but agrees to Line of Adjacency to keep Guatemalan squatters out of Belize's forested interior; both countries agreed in April 2012 to hold simultaneous referenda, scheduled for 6 October 2013, to decide whether to refer the dispute to the ICJ for binding resolution, but this vote was suspended indefinitely; Mexico must deal with thousands of impoverished Guatemalans and other Central Americans who cross the porous border looking for work in Mexico and the US