This report focuses on the educational implications of Mexican immigration resulting from the North American Free Trade Agreement. Informed debate and the effectiveness of educational initiatives depend upon an understanding of the issues from both historical and contemporary perspectives. At present, neither efficient systems nor effective structures are in place to handle the complicated educational issues that are emerging. To be successful, all efforts must recognize and consider three realities: the continuing migration of families and students into the United States in search of a better life; the educational background of Mexican immigrant children; and the rapidly evolving economy, society, and culture of border areas. This report presents a brief history of the Mexican educational system, including efforts at reform. Existing and emerging cross-border education agenda are summarized, including bilingual education and the shortage of bilingual teachers, curriculum alignment and credentialing, distance education technology, cultural exchange and understanding, social and health services, and special education. It outlines some of the current efforts to deal with these issues by federal and state governments, higher educational institutions, businesses, and the Southwest Educational Development Laboratory. The report concludes that border issues will eventually affect much of both countries and that solutions will require drawing upon the strengths of each. (RAH)