Remarks by US
Ambassador Garza at the Inauguration of the 7th Annual Convention of the American Chamber of Commerce
(As prepared)
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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Antonio O. Garza, Jr., is the United States Ambassador to Mexico; US Embassy, Mexico, February 25, 2008.
