Sunday, May 29, 2005

 

Mexico-U.S.

REMARKS BY JAVIER TREVIÑO,
C.A.O. OF THE MEXICAN MINISTRY OF FINANCE,
AT THE CONFERENCE

“MEXICO AND THE UNITED STATES IN THE NEXT DECADE”
San Diego, California, May 11, 1998


Dr. Abraham F. Lowenthal
President of the Pacific Council
on International Policy

Dr. Kevin J. Middlebrook
Director of the Center for US-Mexican Studies

Ladies and gentlemen:


On behalf of the Mexican Minister of Finance, Angel Gurría, I would like to thank the Pacific Council on International Policy and the Center for US-Mexican Studies for the kind invitation to be with you today. It is a pleasure for me to be once again in the San Diego-Tijuana region, in this prestigious Center to talk about the perspectives for the Mexico-US relation in the next decade.

Introduction

First of all, I would like to talk about one of the most significant trends of the 90’s: globalization. Did you know that a Mexican player is now scoring touchdowns in the NFL-Europe, for the Barcelona Dragons? Well, Marco Martos is; and he will continue to do so, unless the Chargers make him a better offer. Talking seriously, one of the greatest challenges we all face in today’s global world is to find the time to sit down, concentrate, read and think about foreign policy issues.

It does not matter if you are an academic, a policymaker, a government official, a teacher or a student; sometimes it is really difficult to go on a daily basis through the national and international newspapers, the magazines, the most recent books and, of course, the Internet. But when one finds it, undoubtedly this huge amount of information offers a tremendous chance to keep up to date about the key aspects of current international affairs.

This is the case, for example, of an article I came across last March in The New York Times. What called my attention was not only its title: “The heat is on; hot sauces are burning their way across America,” but also its subject: how profoundly Mexican and American cultures are intertwined. As you know, we Mexicans cannot eat without a good salsa picante. Well, it seems that Americans cannot either. Hot sauce, in its many guises, is here to stay, and Americans are buying it even more than ketchup. Hot-food, according to the article, is now a $15 billion-a-year business. The most famous hot pepper sauce, Tabasco, the name of a southern Mexican state, is a brand as widely recognized as Coke.

This is just an example that shows that today there is a broader relationship between Mexico and the US. But there are many more: last Tuesday, when we Mexicans commemorated the Batalla del 5 de mayo, the Governor of Texas was in Puebla enjoying the celebrations, while the Mayor of Mexico City was visiting Chicago. This was not only a cultural exchange. It was a sign of a new trend in the Mexico-U.S. relations in the next decade.

Mexico-US relationship

Over the last few years, the governments and societies of Mexico and the US have developed imaginative mechanisms that allow us to capitalize on opportunities and meet the challenges we both face. In a world characterized by several post-Cold War theories on contemporary international affairs, as discussed in Foreign Policy’s 1998 Special Spring Edition, Mexico and the US have effectively envisioned and established creative instruments to address each issue on the bilateral agenda.

NAFTA, the High Level Contact Group for Drug Control, and the Binational Study on Migration are some examples of what our governments, our businessmen, our academics, and other non-governmental sectors have accomplished by working together.

Nevertheless, we need to make further progress. The major transformations of today’s world and the challenges we will face in the near future, make it necessary to keep strengthening our ties to turn our relation into a constant source of opportunities for our countries and citizens. Particularly, I would say there are four main areas where we need to focus:

¨ The first and immediate one is to consolidate the mechanisms we have developed during the last ten years in order to make them more efficient.

¨ Second, based on the absolute respect for each other’s sovereignty and jurisdiction, we need to keep working together to better face common challenges. That requires leadership and coordination.

¨ Third, we must make the most of what already is a bridge of friendship between our countries: the Mexican-American communities in the U.S.

¨ And finally, our greatest challenge: to foster a better knowledge of each other, through education.

1. Consolidate institutional mechanisms

Our two nations have established a number of creative mechanisms that have allowed us to conduct a result-oriented relationship.

In the political area, both our governments have had the will at all levels to find new ways to address all the issues on the bilateral agenda. The Binational Commission is an example. The Commission has become a very effective Cabinet-level working group. On May 1997, 7 Ministers and more than 10 high-level US officials participated in Mexico City at the last meeting of the Commission.

In the economic field, NAFTA has substantially increased our bilateral trade; in 1997 alone, Mexico-US trade totaled a record-breaking $170 billion, almost doubling the 1993 pre-NAFTA level. This positive trend has continued during 1998; last January, trade rose 19% compared to January 1997. Mexico has become the second largest market worldwide for US goods, only behind Canada.

Mexico and the US have also strengthened the cooperation to fight drugs. Both countries have created innovative bilateral mechanisms like the High Level Contact Group, the Cabinet-level bilateral mechanism that coordinates anti-narcotics efforts; the Binational Drug Threat Assessment, a groundbreaking study that provides both nations with a common base for understanding and addressing the phenomenon; and the Joint Strategy Against Drugs, which marked a new era in bilateral cooperation on this issue.

Migration is a structural phenomenon. That is why we have also worked to promote dialogue and cooperation. The Joint Statement on Migration, adopted during President Clinton’s visit to Mexico last year, is a fundamental instrument that reaffirmed our commitment to enhance bilateral cooperation and our will to make of the border area an example of cooperation.

The Binational Study on Migration represents an important achievement. Conducted by specialists and academics from both countries, the Study provides a comprehensive analysis of the migratory phenomenon.

Given the international scope and dimensions of today’s migratory flows, Mexico, the US, Canada, and all Central American nations are working together through the Regional Conference on Migration to undertake a comprehensive and long-term approach to the phenomenon, and to promote consultation mechanisms on migration issues and human rights protection of migrants.

The Conference, a truly imaginative mechanism, was created following a Mexican proposal. After three meetings, the participant governments have agreed on a number of issues, like the Regional Consultation Group on Migration, and an Action Plan to carry out specific activities to better understand the phenomenon.

Mexico and the US are also committed to foster social and economic development along both sides of the border. This effort has been carried out through mechanisms such as the Commission for Environmental Cooperation, the NADBANK, the Working Group on Border Cooperation, the Joint Mechanisms for Border Affairs, and other regional innovative instruments, like the Two Californias, the Sonora-Arizona, and the Chihuahua-New Mexico commissions.

As you can see, nowadays we have a result-oriented relationship. But we need to consolidate the mechanisms we have established in order to make them more efficient. There are still some areas, like drugs and migration, that require unwavering efforts to better confront the challenges they represent.

2. Leadership and coordination

Institutions can help us managing a very broad and complex bilateral relationship. But it is leadership what is required in order to make progress in Mexico-U.S. relations.

Bureaucracies, in both countries, are designed to work in isolation, one from the other, paying careful attention to a very specific area or channel of communication. Partial views could set roadblocks when considering the overall bilateral relationship.

The best moments in the bilateral relationship take place when there are, both in Washington and Mexico City, high-level officials, with direct access to their Presidents, with a vision and the mandate to coordinate and facilitate decisions on issues, avoiding that a problem in one area could affect priorities or the good environment of the relationship.

We have witnessed the so-called “compartmentalization” of the Mexico-U.S. relationship. There are parallel channels to manage each and every bilateral issue. But, in order to be effective, there should be a “master of the channels”, able to control their flow, the level and the intensity.

Institutions without leaders provide stability. Leaders without institutions produce, at best, good news coverage. The next decade of Mexico-U.S. relations will demand able leaders and strong institutions working in a framework of mutual understanding.

3. Mexican-American communities in the US

Another challenge is to make the most of one of the most important bridges of friendship that exists between our countries: the Mexican-American communities in the US. At present, it is estimated that about 20 million people of Mexican descent live in the US. Of these, about 15 million were born here or are American citizens. According to The Economist of April 25th 1998, 63% of the Latin community in the US are Mexicans.

Latino communities have earned a pivotal role in the US, as a result of their growing influence in the political, economic, and cultural fields.

On the political front, Mexican-American communities are exercising a much stronger influence on public affairs in many states, and have an enormous potential at a national level. As you know, the Mexican vote is already decisive in several states, including California, Texas and New Mexico. At the state and city levels now there are more Latinos, particularly Mexicans, in elected offices than ever before.

Economic influence has also grown, contributing greatly to the prosperity of the areas and cities where these communities live. This is the case of the Los Angeles County, for example: Latino-owned business have grown from 57,000 in 1987 to 210,000 in 1997. Much of California’s recovery has been achieved thanks to them.

Also, by sending money to the regions in Mexico where they come from, they contribute to the benefit of many areas in our country. Annually, it is estimated that they send more than $4 billion dollars to Mexico, thus making a profound impact in regional development.

Mexican culture has become a significant element of your own culture. From food and sports, to our strong family values, it has undoubtedly contributed to the enrichment of American society. Hot sauce is a proof of what I say; but there are many more. The incredible growth of soccer in the US is an example; and, is there anyone here who does not know who Salma Hayek is?

Because we know that we are united to the Mexican communities in the US by our culture, the strengthening of our bonds of friendship and cooperation with them has been a priority for Mexico. The several cooperation projects carried out through the Program for Mexican Communities Abroad, the new dual nationality law, and the relationship we have developed with NGO’s that work in favor of these communities, such as LULAC, MALDEF, NALEO and many others, are some examples of our commitment to strengthen our ties.

We want to intensify this effort even more. By doing this, we know that we will contribute to a better relationship between Mexico and the US, given the special place these communities have earned in this country.

4. Deepen mutual knowledge

The other challenge we face is a fundamental, long-term one for Mexico and the US: to deepen real knowledge of each other. Unfortunately, even though in the past few years our bilateral relationship has improved substantially, some negative perceptions still remain. That is why we need to foster a better mutual understanding to go far beyond the stereotypes that sometimes have affected our relation.

As was acknowledged during the last Summit of the Americas, the 21st century world makes it imperative to attain better levels of education in order to achieve full political, economic, cultural, and social development, and to build better links among nations.

No crusade is more critical than education. As was discussed at the Santiago Summit, to prepare and to better train people in the global world, it is necessary to find imaginative educative initiatives that include measures such as fostering faculty training, improving the quality of textbooks, allocating more resources to elementary and secondary schools, and the use of new tools, like the Internet.

Education must be the way for Mexico and the US to overcome the challenges and seize the opportunities offered by the global scenario, and to foster a better knowledge of each other in order to improve our relation.

We have made important progress towards this goal. We have learned to go far beyond what media says, and to leave behind us the cliché “good news is no news.” We have started to know more about us and to appreciate each other better.

In Mexico there has always been a lot of information about the US. Today, you also have plenty of information about who we are and what we are doing. Thanks to the Internet, for example, on a daily basis American policy makers, businessmen, academics, students, the media and many other sectors can access reliable, timely information on every aspect of Mexican life.

NAFTA has been crucial in fostering a better relationship between Mexico and the US. Besides allowing us to strengthen our economic and trade ties, this mechanism has been an educational experience in itself, since Mexico, the US and Canada have become more familiar with each other’s political, economic, and social systems.

NAFTA has had a significant impact on education and culture. It has become imperative to think about how to build new links, improve the knowledge base, and ensure that the nations of North America have the qualified personnel to operate in an increasingly competitive international economic environment.

There are small, but strong, institutions like the US-Mexican Commission for Educational and Cultural Exchange, the COMEXUS, which has also been a key factor in deepening our mutual knowledge.

Among other things, the COMEXUS manages the Fulbright-García Robles Scholarships. Many of the people who benefited from the scholarships have risen to the top ranks of government , business, education, and the arts both in Mexico and the US.

Mexicans who studied in the U.S. are making a difference in the understanding and managing of bilateral relations. However, and perhaps due to generational reasons, U.S. students trained on Latin America or on Mexican studies are not yet in the top foreign policy making positions of the U.S. government. We still see that leaders in the foreign policy establishment are people trained on U.S.-Soviet, Middle East or European studies.

Hopefully this trend could change in the near future. The main universities and educational institutions in Mexico and the US have created study centers about our countries. The Center for US-Mexican Studies is one of the best examples.

Cultural exchanges have also contributed decisively to appreciate each other better. Over the last two years, cultural cooperation was highlighted by exhibits like the “Olmeca Art of Ancient Mexico” at the National Gallery of Art in Washington, D.C., and “Masterpieces from the National Gallery” at the National Anthropology and History Museum in Mexico City. All these actions and many more have contributed to promote a greater knowledge of our countries and our citizens. However, in the context of our complex and dynamic relationship, it is necessary to do more to deepen our mutual knowledge.

Undoubtedly, today Americans have more information about Mexico. Now the American public is better informed about how dramatically Mexico has changed over the last few years. Many Americans, for example, are familiar with the major economic transformations that have occurred in Mexico, and that have allowed us to return to the path of growth.

But there are other transformations that need to be better known, and that have enabled Mexico to make progress in many areas, such as the political deregulation we have gone through.

The old unwritten political “rules” that for many years characterized the Mexican political system are being left behind. Instead, the political reform we have implemented has allowed us to consolidate a more effective democracy.

A multiparty political system; the complete autonomy granted to the authority responsible for conducting the elections, the Federal Electoral Institute; transparent electoral processes; a true division of powers, and the strengthening of federalism are some examples of the more democratic life that prevails in Mexico.

While there is still much to be done in order to have the country we envision for the next century, these economic and political transformations have allowed us to make progress. In this sense, we know we are on the right track to become the more democratic, prosperous and just nation we want to be.

Ladies and gentlemen:
In order to anticipate what could happen in the Mexico-U.S. relationship in the following ten year, it is necessary to understand what has happened in the last decade. Ten years ago, a process started to unfold that has allowed Mexico and the US to have a much better relationship.

Just think for a moment about what happened at the end of 1988 and the beginning of 1989. The “Spirit of Houston” started to permeate the bilateral relationship. Friendship and confidence were built in the Salinas-Bush Administrations.

From 1990 to 1993, notwithstanding a change of U.S. Administrations, we were able to negotiate and get the approval of NAFTA. We learned to work with the U.s. Congress, the U.S. media and the U.S. grassroots. We were able to create coalitions to support NAFTA.

Nineteen-ninety-four was a very difficult year: Chiapas, Colosio´s assassinations, the Presidential election, Ruiz-Massieu´s death and a financial crisis. We were able, however, to manage a high-level attention to the relationship that ended up in the financial package put together by the U.S. government at the beginning of 1995.

In spite of the 1995 financial crisis, we were able to continue strengthening institutions. During the last three years, the Binational Commission has become a truly operational mechanism; we have consolidated NAFTA, and created the High Level Contact Group for Drug Control, and President Clinton visited Mexico in what was a very fruitful trip, just to mention some of the highlights.

The Gutiérrez-Rebollo “accident”, in 1997, was faced successfully due to our institutions and leadership on both sides of the border. This year, however, presents us with a new challenge. New teams are, or will be, in place for the management of the relationship. Let us expect that institutions and leadership will work well in order to make progress and prevent accidents.

Every step, in the last ten years, constituted part of a process that required a lot of effort, that had to be built from the bottom up. But, what happened in order for this to happen? What changed? I believe that there were two main factors that converged at the same time.

First, there was a change of attitude. We started to understand that as governments and societies we acted differently, not for the sake of vexing our neighbor, but because we were different, and that measures and programs that worked in one country were not necessarily applicable to the other.

With that understood, we started to see that even though we were different, we had a lot in common as well, so we started working in order to multiply potential benefits by joining our efforts. This required political will, negotiations, cooperation, and, above all, a better mutual understanding.

We walked into each other’s shoes and started to look at things from the other’s point of view. This way we were able to better understand, for example, how our Executive and Legislative branches worked; how the media in both countries reported and commented the news; what were businessmen and investors looking for; and what the average citizen expected. In short, we made it our business to learn about each other’s business.

The second factor was that we started to work in a coordinated way. We set up coordination mechanisms at the highest level and with direct access to our Presidents that allowed for prompt attention and smoother differences solving. In the last ten years we have good examples of leadership that worked.

These reasons have contributed to turn our inexorable geographical position into a respectful, mature and constructive relationship.

Mexico and the United States are inextricably linked. We will always be neighbors. That is why even though we have progressed in many areas, it is necessary to work harder to capitalize the opportunities and overcome the challenges we both face.

Based on the absolute respect for each nation’s sovereignty and on dialogue and cooperation, we need to consolidate and improve the mechanisms we have; to keep working together to successfully confront shared challenges; to make the best of what already is a bridge of friendship between our countries, the Mexican communities in the US; and, particularly, to foster a better knowledge of each other.

Thank you very much.

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