Mexico high on US list of priorities

The Bush-Fox meeting reflects powerful economic ties

Economic issues are high on the agenda as Mexico's leader Vicente Fox goes on his first official state visit to Washington since George W Bush became president.

"As somebody who was a border governor, Bush has a deep appreciation for the role Mexico plays in America's economy," said a presidential spokesman.

At the top of the agenda will be the issue of illegal immigration and the estimated 3 million undocumented Mexican workers living in the United States.

President Vicente Fox: Election ended 71 years of single-party rule

During President Bush's first official trip in February, he and President Fox set up a high-level task force to find a solution to the immigration problem.

They are expected to announce some progress - although not the broad amnesty some negotiators hinted at earlier in the year.

The push to legalise undocumented workers is two-fold. Big companies want a more stable workforce, while unions see immigrants as an answer to their dwindling membership.

Analysts say undocumented workers contribute as much as 2% of gross domestic product in the United States. They also send $10bn back to Mexico - representing over 2% of its economy.

Historic victory

Fox's election ended 71 years of single-party rule by the Institutional Revolutionary Party.

He has vowed to boost Mexico's economy through conservative free-market policies.

Mexico's place in the world

8th largest exporter in the world

13th largest economy

Largest economy in dollar terms in Latin America

Since the North American Free Trade Agreement (NAFTA) came into force in 1993, US-Mexican commerce has doubled to its present level of $263bn a year.

This makes Mexico the second-largest trading partner to the United States, after Canada.

Andrea Mandell-Campell, the Financial Times' correspondent in Mexico City, told the BBC's World Business Report that Mexico was the most successful country in the region.

"One of the main goals of Vicente Fox is to try to close the gap between Mexico and the United States," she said.