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We all appreciate the fact that the United
States and Mexico are linked by much more than economic ties
-- we are tied together by our common border and increasingly
mixed populations, and a multitude of shared values and interests.
However, no shared interest is more important to both countries
than providing for the prosperity of our peoples, which is
why our two governments are working hard to spur economic
growth and ensure that the ensuing benefits are enjoyed by
all our citizens.
President Bush acknowledged in his State of the Union Address
on Monday that the U.S. economy is undergoing a period of
uncertainty. But, he affirmed, “In the long run, Americans
can be confident about our economic growth.”
The fundamentals of the U.S. economy remain sound. Our economy
has experienced six years of uninterrupted growth, averaging
2.8 percent a year since 2001. Since August 2003, 8.4 million
jobs have been created; in 2007 alone, the economy added 1.3
million new jobs. Real after-tax per capita personal income
rose by 2.1 per cent over the past 12 months and by 11.7 percent
– an average of more than $3,550 per person – since January
2001.
Despite all this positive news, recent turbulence in the
U.S. real estate market has created uncertainty that could
damage business and consumer confidence if left unchecked.
We have vigorously addressed this problem: the Federal Reserve
cut a key interest rate by 1.25 percentage points; the House
approved President Bush’s $150 billion stimulus package; and,
the President has called on Congress to make earlier enacted
tax cuts permanent.
Beyond our efforts to keep our domestic economy strong, we
are also generating new trade and investment by integrating
our markets with those of our hemispheric neighbors via free
trade agreements. As President Bush has stated, “Trade brings
better jobs and better choices and better prices.” These translate
into tangible benefits for farmers, workers, entrepreneurs,
and consumers across the Americas.
NAFTA is the best example of the positive effects of free
trade. Since its inception, Mexico has quintupled its exports
to the United States. Prosperity has increased and families
have unprecedented access to previously unavailable or unaffordable
goods and services. For example, according to the UN, chicken
consumption in Mexico more than doubled in the last decade.
And, according to the World Bank, wages and employment in
regions of Mexico with increased trade have risen dramatically
since NAFTA. Mexico, Canada and the U.S. are continuously
streamlining NAFTA’s procedures so more people can take advantage
of its opportunities and realize its benefits.
NAFTA’s success has inspired other free trade agreements
(FTAs). Throughout the hemisphere, from the Arctic to the
Antarctic, countries are extending the advantages of free
trade to their people. Mexico has entered into FTAs with other
partners in the region and the European Union. The United
States has FTAs with Chile, Central America, the Dominican
Republic, and Peru. In the State of the Union address, President
Bush urged Congress to approve pending FTAs with Colombia
and Panama, saying “We must come together … and show our neighbors
in the region that democracy leads to a better life.”
Additionally, while immigration reform is sometimes a heated
and contentious subject of discussion, it is necessary to
address this issue in order to acknowledge that foreign workers
are a critical component of our economy. President Bush highlighted
this in his State of the Union by recognizing the need to
“create a lawful way for foreign workers to come here and
support our economy.”
The vast benefits from free trade cannot be fully realized
without public policies that ensure these benefits are shared
widely within our societies. Here in Mexico, the Calderon
administration is working hard to enact such policies. I am
proud that we are working with President Calderon and others
across the political spectrum in these efforts in many critical
areas such as improving Mexico’s infrastructure network, strengthening
rule of law, raising farmer productivity, protecting the rights
of artists and inventors, promoting business contacts, and
expanding access to credit for small businesses.
Just as the state of the U.S. economy is important to Mexico,
so too it is in the best interests of the United States for
the Mexican economy to grow in a way that improves the quality
of life of its people. Working together, I know we can bring
ever greater prosperity to the people in both of our countries.
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