Mexico Well Prepared for Economic Challenges

Mexico City | January 2, 2009

Statement by Ambassador Antonio O. Garza

“As we start the new year, it is clear that the worldwide financial downturn has impacted every nation and the full economic consequences will likely be felt well into 2009. No doubt, the financial situation weighs heavily on both our societies, but while solutions to tight credit, reduced demand, and investment slowdowns may take many months to emerge, Mexico remains on a steady course to economic development as the world economy slowly recovers, and the United States remains a strong partner.

“Mexico enjoys continued economic growth, low foreign debt, strong dollar reserves, controlled inflation rates, and solid financial institutions. The Calderon administration’s impressive National Infrastructure Program will also generate jobs and promote future economic development and poverty reduction. Mexico is becoming more competitive, protecting intellectual property rights and attracting foreign partnership in energy development, and remaining committed to free trade. President Calderon actively has sought bilateral trade agreements with many other nations, and joined regional efforts aimed at reducing tariffs and expanding trade benefits during the G-20 and the Pathways to Prosperity discussions.

“Trade is a cornerstone of prosperity in both Mexico and the United States. At the September 2008 Pathways to Prosperity conference, Mexico, the United States and eleven other partner countries from around the Hemisphere reaffirmed that in light of the global financial crisis, trade and investment expansion are essential for economic growth, sustainable development, poverty reduction, social justice and democracy. We remain committed to working with our partners to bring the benefits of trade to more people in our societies.

“The U.S. continues to take steps to recover from the crisis. In recent days, the U.S. government moved decisively to bolster the automobile industry and I believe this action will have a positive long term impact on both the U.S. and Mexican economies. Continued automobile production will certainly mean more job opportunities in both our countries.

“In recognition of the fundamental strength underlying Mexico’s economy, the U.S. government offered an extraordinary $30 billion swap line of credit to meet emergency dollar requirements. Due to sound financial management, Mexico has not yet needed to access this credit. The U.S. remains committed to working in partnership with Mexico as our countries emerge from the financial crisis, and we look forward to Mexico’s continued leadership in future international forums aimed at establishing greater prosperity for all our citizens.”