The contentious July 2006 Mexican presidential election placed Mexico squarely back on the U.S. foreign policy agenda. This timely report details the economic and political obstacles facing President Felipe Calderón and sketches the institutional environment that will define his room for political maneuvering. Pamela Starr identifies the likely consequences of the bitterly fought campaign for democracy and economic reform in Mexico and for relations with its hemispheric neighbors and with the United States. She focuses on the election's impact on U.S. efforts to control its southern border, enhance the competitiveness of the U.S. economy, and fight drug trafficking. Finally, the report offers concrete policy recommendations to the U.S. government on how to help Mexican authorities move past the electoral dispute and confront their country's many complex challenges.