The White House says that last year alone, trade between the countries totaled nearly half a trillion dollars.
Mexico also is the United States' second-largest trading partner.
Obama says it will help the economies of both countries to not be constantly bogged down by border issues. And, he says if immigration is going to get done, now is the time to do it.
Obama spoke Thursday in Mexico City, where he is on his first trip to Latin America since winning re-election.