Mexico and Drug Certification in 1999: Consequences of Decertification (CRS Report for Congress)
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| Release Date |
March 4, 1999 |
| Report Number |
RL30080 |
| Report Type |
Report |
| Authors |
K. Larry Storrs, Foreign Affairs, Defense, and Trade Division |
| Source Agency |
Congressional Research Service |
Summary:
President Clinton certified, on February 26, 1999, that Mexico was fully cooperative in counter-
narcotics efforts with the United States, setting in motion a 30-calendar-day period in which the
Congress may review the President's decision. In recent years, congressional resolutions were
advanced but not enacted to disapprove the President's certifications after President Clinton certified
Mexico as a fully cooperative country. This report summarizes the drug certification procedures and
indicates the types of U.S. assistance that would be suspended or exempted if Mexico were to be
decertified.
Under Sections 489-490 of the Foreign Assistance Act of 1961, as amended, the President is
required to certify that a country has fully cooperated with U.S. counter-narcotics efforts to avoid
sanctions, including the suspension of certain U.S. assistance, and the requirement that U.S.
Representatives vote against loans for the country in multilateral development banks. The sanctions
would also apply if the Congress, within 30 calendar days, passes a congressional resolution
disapproving any presidential certification. However, any such congressional resolution would have
to be presented to the President and would be subject to veto. Moreover, as indicated below, some
types of assistance are exempted from suspension, and the President has special authorities to waive
sanctions.
With regard to bilateral assistance, the Clinton Administration is planning to provide $29.85
Million in standard foreign assistance and Department of Defense counter-drug assistance to Mexico
in FY1999, including $15.9 million in anti-drug assistance, and $13.95 million in economic
assistance programs. Because of exclusions for narcotics control assistance and certain economic
assistance programs (some of which require notification to Congress), from $13.50 million to $28.85
Million of this assistance could be excluded from suspension if Mexico were decertified. Mexico
may also receive other types of U.S. military and export assistance in FY1999, including Export-
Import Bank financing, which is dependent upon sales and agreements. Export-Import Bank
financing of up to $2 billion per year is the major category of all types of assistance which would be
suspended in the event of decertification. Since such assistance was developed to finance and
guarantee the sale of U.S. products, these suspensions would be harmful to U.S. exporters and sellers
as well as to Mexican buyers.
With regard to multilateral development bank lending, decertification would require the United
States to vote against pending World Bank and Inter-American Development Bank loans for Mexico,
amounting together to over $5 billion, but such votes might not affect lending levels significantly
because the United States share of the vote is not sufficient to block approval of loans.
