By Gerónimo Gutiérrez, Ambassador of Mexico to the United States.
DURING SEPTEMBER 2017, THE UNITED STATES AND MEXICO SUFFERED THE EFFECTS OF NATURAL DISASTERS OF TREMENDOUS MAGNITUDE. IT WAS A MONTH OF UNSEEN CHALLENGES FOR BOTH OF OUR NATIONS AND, YET AGAIN, MEXICO AND THE UNITED STATES HAVE PROVEN THAT WE ARE STRONGER BY STANDING TOGETHER AS NEIGHBORS AND PARTNERS.
Apositive relationship is especially important as we work for the modernization of the North American Free Trade Agreement. This is a time for Canada, Mexico and the U.S. to increase economic competitiveness in our region, create more and better jobs and improve the prosperity of our people.
The U.S.-Mexico Chamber of Commerce (USMCOC) under the leadership of Al Zapanta, proudly represents the Mexican-American business community and its ability to grow our shared economic space.
For more than four decades the USMCOC has maintained its commitment to the promotion of trade, investment and economic development in our region. We recognize the work and perseverance of members, chapters and the leadership of the Chamber.
There is broad consensus that, after 24 years, NAFTA needs to be updated. As we stand at the crossroads of the North American integration, we foresee a unique opportunity to consolidate our region as the most competitive in the world. We navigate this modernization with the goal of strengthening and expanding the bridges that already connect us.
It is of paramount importance to remark that today— as it was when NAFTA was formed—the USMCOC is called to be a prominent voice and to communicate and promote the importance of a responsible and successful transition to a modernized NAFTA. In time of uncertainty, the role of the USMCOC and its members are crucial and will be tested like never before. The future of North America is at stake.
We can use what we have learned in the past to effectively modernize our agreement for the coming years; however, modernization must preserve our achievements to build the prosperous future we all want. The future of trade and production in our region will be driven by digital flows, innovation, knowledge, further liberalization and deeper economic integration. This is the way forward.
It is important to remember that during the last two decades we have seen unprecedented growth in our bilateral trade. Mexico now is the United States’ third largest trading partner and its second export destination. In 2016, our bilateral trade totaled $580 billion and supported five million U.S. Jobs.
While last year we traded $1.6 billion per day in goods, 19.3 million Canadian visitors and 18.7 million Mexican visitors spent $40 billion when travelling to the United States. Clearly the shared economic space is yielding good results for our economies.
Also, it is widely recognized that NAFTA not only affects what we trade but also what we produce together through the North American supply chain. As a result, our competitiveness has increased dramatically in the global markets.
Our economies have a great potential ahead. The energy revolution, our natural resources and the agricultural production, combined with a skilled and young population and workforce, give us comparable advantages worldwide. Today we have energy self-sufficiency and demographics that other regions could only dream about.
In this context, it is important to emphasize that in the last 25 years, the U.S.-Mexico relationship has become one of dialogue and close collaboration, where free and fair trade is a key component of broad agenda.
The Mexican government has worked closely with the United States in areas of immigration, border security and regional cooperation in Central America. Mexico has been a constructive partner, not only because shared intelligence and dialogue have become the rule in every bilateral issue, but also because of the work we have done at home to address and update our legislation regarding some of the most pressing issues.
The administration of Mexico’s President Enrique Peña Nieto has achieved a comprehensive set of structural reforms, including energy, labor, education, financial services, fiscal policy, competition policy, entrepreneurship and telecommunications. This impressive overhaul will transform the Mexican economy and raise the living standards through the rule of law, the expansion of political opportunity and the increase in productivity and competitiveness.
During ongoing negotiations, each country can advance its own interests while achieving a positive outcome for all three nations. This delicate balance is where the real challenges lie and where the real opportunities exist.
We all need to be very responsible in this effort. Governments and elected officials; NGOs, academia and communities; workers, businesses and business organizations, like the USMCOC. We all need to do our part, actively participate in the process and decisively contribute to build on the progress we have made so far.
Looking ahead, Mexico remains committed to North America and we are ready to take the next step with our northern neighbors. Canada, the U.S. and Mexico have dedicated more than two decades to integrating and competing in the global economy. This is the time to work together, consolidate our achievements and emerge as the most competitive region in the world.
