The two countries struck a deal to avoid a tariff war.
Mexico has agreed to expand a controversial asylum program and deploy security forces to stem the flow of illegal migrants into the USA.
This is after U.S. President Donald Trump threatened to impose 5% import tariffs on all Mexican goods starting on Monday if they didn't do more to tighten its borders.
The announcement comes after three days of talks in Washington, where Mexico agreed to send Central American migrants seeking asylum in the United States to Mexico while they wait for the result of their case.

US envoys arrive in Qatar as mediators work to revive Iran talks
Two dead after wildfire guts house in northern Greece
Afghanistan launches airstrikes on IS targets on border with Pakistan
Bangladesh warns of dengue surge as weather aids spread
Fourteen children killed in Pakistan after tutoring centre roof collapses
Supreme Court rejects Trump bid to restrict birthright citizenship
South Africa's anti-migrant protesters march nationwide
Iran and US agree to halt attacks, uncertainty over Doha talks
