On May 19, Mexican President Felipe Calderon is expected in Washington for a state dinner with President Barack Obama and an address before a joint session of Congress.  President Calderon's visit comes as our two countries face serious challenges both in a war against drugs and from mounting tensions stemming from the recently enacted Arizona immigration law.

While we've seen an extraordinary amount of engagement from U.S. and Mexican officials, clearly frustration is mounting on both sides of the border as no one appears satisfied with the pace of progress on security and immigration.

President Calderon minced few words recently when he said Arizona's new law "opens the door to intolerance, hate, discrimination and abuse in law enforcement."  That statement will no doubt fuel heated debate, and it certainly signals we've entered a challenging period in bilateral relations.

The convergence of security, immigration and economic challenges with election cycles in both countries means rhetoric will ratchet up, taking on a more strident and often heated tone.  While that's a reality we must deal with, it won't be productive for either country, a point which I noted in my column published in Mexico's Excelsior.

In spite of the rising tensions on both sides of the border, we are, however, seeing an economic up-tick in the U.S. and in Mexico, there's some positive signs of recovery, too, including:

• GDP growth is outpacing market expectations;
• Industrial production is increasing; and
• Manufacturing sector is rebounding as outside demand increases.

Essentially, what we're seeing in Mexico is what the experts at JP Morgan called, "the chronicle of recovery."

Clearly a large part of maintaining that positive trend is the federal government's commitment to expanding opportunities for outside investment in key infrastructure projects here in Mexico.  My colleagues here at White & Case/Mexico City have compiled a comprehensive overview, status report and assessment of key infrastructure projects in the country, and it is available online here.  There's considerable opportunity for targeted investment and development in the energy and infrastructure sectors in Mexico.  If you're interested in visiting with me about these key sectors and opportunities, This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Finally, I'd like to share items that may be of interest to you.   My partner at ViaNovo, Matthew Dowd, recently offered his perspective on Washington's "political-industrial complex" and the future of the two major parties in this fall's elections.  As you know Matt is a regular political contributor on ABC News. You can read Matt's latest piece online here.

And, lastly, the Austin American-Statesman published my thoughts on "post-Merida" U.S./Mexico relations, authored prior to the Arizona immigration controversy, in this past Sunday's Insight section.  You can read it here.

I look forward to staying in touch and hope you'll This e-mail address is being protected from spambots. You need JavaScript enabled to view it if I or my colleagues either at White & Case or ViaNovo can be of help to you or your firm.

With best wishes, I am,

Sincerely,

Antonio O. Garza