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Thank you Simon. Senator Creel, Senator Green, Senator Polevnsky,
it is a pleasure to see you. Thank you so much for being here
tonight.
It seems like I’ve done this before, and each time I’ve expressed
what a privilege it is to serve as Honorary Chairman of the
American Chamber of Commerce in Mexico, and I mean that. So
thank you for inviting me to inaugurate this, the 7th National
Convention - one that builds on 91 years of Amcham presence
here in this incredible country.
The title of this conference -- “Mexico and the U.S.: On
the Brink of a Major Opportunity” -- is an intriguing one,
but to be honest with you, when it comes to opportunity, I
believe that we’re well past “the brink” and firmly in the
middle of not only extraordinary times, but extraordinary
opportunity.
Just take one moment to remind yourself of what you have
seen during that relatively short time since we’ve all lost
a little hair and gained a few pounds.
Since the 1980s the region has been transformed from one
with few democracies and generally closed economies, to one
in which all countries, save Cuba, regularly hold democratic
elections and almost all have open economies. And the good
news is Mexico is leading the way.
In fact, while the media tends to characterize the region
as polarized by two economic models: populist and market-friendly,
it is the market-friendly economies that make up over 90%
of the region’s population and GDP.
And today the Cuban people should be given an opportunity
to begin a process of peaceful, democratic change -- and to
live in freedom -- where governments derive their legitimacy
from the consent of the governed, and not the whims of a dictator,
or the legacy of five decades of tyranny.
Those of you in this room are amongst the most knowledgeable
and successful participants in the North American success
story. I don’t have to tell you what NAFTA has already done
for your own companies or that “what is good for Mexico” is
good for the Americas.
The steps that the United States and Mexico have taken to
secure our citizens and energize our economies are substantial,
and irreversible.
So yes, opportunity is here, and here now. But there lie
some challenges ahead. Over the next day you will have the
chance to look closely at many of them -- but before we start,
I am here to say that both the governments of the United States
and Mexico are working hard to create a safer, more competitive
environment where capital can be rewarded and opportunity
created.
I know there is not a person here that is not watching the
economic situation in the United States and wondering what
it will mean for Mexico, and for our shared economies.
While it is clear that the U.S. economy is not growing at
the same rate as it has in recent years, the President and
Congress have responded vigorously.
The $168-billion stimulus package President Bush signed this
month and the Fed’s lowering of interest rates should bolster
both business investment and consumer spending.
Late last year, President Bush signed the “Mortgage Forgiveness
and Debt Relief Act,” which will protect families from higher
taxes when they refinance their home mortgages.
Beyond the housing market, the Administration is also urging
Congress to expand markets for American workers and farmers
by approving trade agreements with Colombia, Panama, and South
Korea.
And the long-term fundamentals of our economy are sound. The
U.S. economy has chalked up over six years of solid economic
growth. Our economic expansion has been marked by strong job
and income gains, significant progress on the fiscal front,
and more recently, a rapid rise in exports is helping to shrink
our trade deficit and productivity has grown 2.6 percent per
year under President Bush’s leadership -- the largest gains
in the past 30 years.
But we can’t take our eye off the ball during this time of
economic uneasiness. Real sustainable growth is only possible
where government not only stimulates, but invests in both
people and infrastructure.
And, in a democracy, people from all across the political
spectrum and all walks of life need to feel as though they
are a meaningful part of their countries decisions, and that
those decisions are sensitive to their needs, particularly
those battling poverty, inequality, and social exclusion.
President Calderon and the leadership of all major parties
here in Mexico have been doing just that. What we are seeing
is a Mexico on the move.
By building on a record of both macro-economic stability
and more open and democratic government, today’s Mexico is
embracing change as never before.
We have seen leadership from all parties work towards significant
reform to the tax and pension systems. Congress unanimously
passed electoral reform and is working towards judicial reform
and strengthening the rule of law. As well as looking for
ways to make their energy sector more competitive.
Last year foreign direct investment in Mexico reached a record
$23 billion dollars and 800,000 new jobs were created, and
we are seeing the start of an impressive diversification in
Mexico’s exports.
Mexico also achieved one of the lowest inflation rates in
the region -- lower in fact than the U.S. inflation rate for
the first time in history.
And recently, a $250 billion dollar five year infrastructure
plan was announced to build and modernize Mexico’s harbors,
airports, and highways and commit critical resources to the
energy sector.
Mexico is clearly keeping its eye on the ball and, as President
Calderon has said, is intent on meeting or beating the expectations
that it will join the world’s top five or six economies well
within the lifetime of the Mexican children now in schools
across the country.
So when I’m asked if we’re keeping an eye on Mexico, my response
is ‘you bet’ we’re watching Mexico. What is good for Mexico
is good for the U.S. and the hemisphere.
But like so many of you, I have also seen violence related
to narco-trafficking spread rapidly. Like so many of you,
I have seen law enforcement officers slain and been struck
by the ruthlessness of the drug cartels operating in this
country. Like so many of you I have heard the concerns of
everyday Mexicans from all across the country -- concerns
about their security, their communities, and the safety of
their children.
But I’ve also seen a government be steadfast and courageous
in its commitment to fighting those who threaten our societies.
I have seen records set in the volume of seizures, both cash
and cocaine, and drug kingpins extradited so that it is clear
to them that they can run, but they can’t hide from justice.
I’ve also read reports of cartels wanting to “cut deals”
in what is clearly a sign that the government is winning,
but I have seen a government that has been brave enough to
say no, no deals, not now -- not ever.
But what is most critical to success on this front is that
the U.S. and Mexico have moved beyond finger-pointing and
blaming each other.
We are working together like never before and accepting our
shared responsibilities. So yes, let me be clear. We must
do more in the U.S. to reduce drug demand and to stop illegal
arms trafficking to Mexico. And both countries must share
the responsibility to confront those brutal killers who threaten
our institutions and poison our children wherever they might
be.
Both our Presidents realize that each of their political
will and leadership will not be enough. Only together, acting
as true partners creating what has been called “a new paradigm
for security cooperation” can we rise to the urgency of this
challenge.
The Merida Initiative is just that. As President Bush has
said “regional problems require regional solutions.” The Merida
Initiative is about leveraging each nation’s domestic efforts
by combining them with more aggressive regional cooperation
to multiply the impact of our actions. We recognize that drug
traffickers and criminal organizations do not respect political
boundaries and that they are the only winners when we fail
to work together.
So while our governments respond to a natural slowing down
in the economy, and the Merida initiative seeks to send a
clear message to the cartels, we all must do our part to make
the already impressive integration more seamless and more
efficient. Here in Mexico City we’re working on that.
I’ll give you two examples. On Wednesday, we are hosting
a conference for U.S. firms interested in working in partnership
with Mexican companies on the opportunities in this country’s
infrastructure plan. For us, this is a win-win proposition.
The conference will help U.S. companies identify opportunities
to participate in over 30 of the most important projects in
the National Infrastructure plan, and seek to introduce those
firms to Mexican businesspeople that are looking for the resources
and expertise that these companies might offer.
On Thursday I will be joining Homeland Security Secretary
Michael Chertoff and Commerce Secretary Carlos Gutierrez as
they meet with their Mexican and Canadian counterparts. Their
goal? To make it easier for North American firms to do business
anywhere on the continent and assure that our three countries
are safe and secure from terrorists that might seek to do
us harm.
I started my comments tonight by looking back to the Eighties,
a period that for most of us has gone by in little more than
a blink of an eye. Yet, in little more than that same blink
of an eye, Mexico will be amongst the world’s largest economies.
So no, we are not on the “brink” of opportunity but rather
in the middle of an opportunity. And I am optimistic about
our shared future and will tell you why.
These past few years I have watched the U.S. – Mexico partnership
evolve into a more mature, equal partnership, one that President
Bush has said is as ‘rich as it is complex.’ And whether or
not we are ready to accept this fact, Mexico and the United
States need each other -- and citizens of both our countries
know that, and our political leadership needs to hear that.
Think about it, our challenges are bringing us closer together
because Mexicans and Americans share the same concern about
our economies and the impact of crime and violence on both
sides of our border.
What we are witnessing is a remarkable convergence of values,
which include a commitment to democracy, rule of law and prosperity
for all our citizens.
Each day in the marketplace of ideas, labor and capital,
millions of people are reflecting this convergence and, to
paraphrase John Adams “markets, like facts, are stubborn things.”
As we become more reliant on each other obstacles to labor
and capital flows both North and South need to reflect the
will of the people, people on both sides of the border who
want little more than an opportunity, an opportunity that
might be found in a job that needs to be filled in the US,
or an investment that needs to be made in Mexico.
As we move forward we all need to continue asking the tough,
strategic questions about where we are headed in the next
few years, making sure that leadership in both our countries
does what is necessary to make North America the most democratic,
safe and prosperous continent on Earth -- and that is a challenge
that I know you are up to.
Again, I want to thank you for allowing me to join you this
evening and end this speech as I always do, simply asking
that God, now and forever, bless both the United States and
Mexico.
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