U.S.-Mexico Partnership For Prosperity Conference

Foreign Secretary Derbez, Mayor Gonzalez, Dr. Sojo: Thank you for your welcome and your preparations for this conference on the important question of making North America more competitive.

In the three years since President Bush and President Fox announced the Partnership, we have taken substantial steps towards this goal. In the last year alone:

1. The U.S. Peace Corps and the Mexican National Council of Science and Technology (CONACYT) signed an agreement on November 12 of last year to initiate a program in Mexico. Through this program, Peace Corps volunteers for the first time will work in Mexico. The Peace Corps will operate in partnership with CONACYT in the areas that can have a real impact on competitiveness: information technology, small business development and science and technology. CONACYT and the Peace Corps have worked closely together to select sites and to determine the best way to use the volunteers. The first group of 10 to 15 volunteers will be arriving in Mexico by the end of September 2004.
2. On April 27, the Mexican Senate ratified an agreement between the government of Mexico and the U.S. Overseas Private Investment Corporation or OPIC. Through this agreement, which was signed at the P4P Workshop in San Francisco last year, OPIC can for the first time offer all of its programs and services to provide investment support in Mexico – up to $250 million per project. Initially, OPIC intends to focus on projects in education, municipal infrastructure, environment and housing. OPIC’s dynamic President and CEO, Peter Watson, is here today to continue discussions on these programs with his Mexican counterparts. Bilateral cooperation under this agreement will bring more investment into Mexico, and help make North America more competitive.

1. The cost of remittances has dropped more than 50% over the last 3 years. We are now building on this success to help expand the options for productive use of remittance products, so that families receiving remittances can use them to finance business or housing.
2. Under the umbrella of the P4P, housing experts from both our countries have worked to help Mexico develop its mortgage-backed securities industry. The result will be to create affordable housing finance options for the average Mexican household.
3. Last year, the Bank of Mexico and the U.S.-Federal Reserve System announced the creation of an automated clearinghouse to reduce the cost and time of cross-border financial transactions. Later this afternoon, the two partners involved in this initiative will host a presentation on the “Benefits of the Mexico-U.S. System for Electronic Financial Transactions”.
4. The U.S. Agency for International Development and Banobras are using a $500,000 grant to work with U.S. municipal finance advisor Evensen Dodge to enable Mexican municipalities to issue bonds in the Mexican capital market. In its first pilot project, the State of Michoacan will borrow a total of US $250 million to finance expansion of the secondary road system and improve links to major North-South highways. More details about this project will be provided in a press conference later this morning.
5. In conjunction with P4P, the U.S. Trade & Development Agency (USTDA) has delivered a highly effective grant-funded development program in Mexico, promoting the advancement of Mexico’s national infrastructure, transportation, and financial service sectors. In the last year, TDA has made a $450,000 grant for the modernization and expansion of the Ciudad Obregon in the state of Sonora; a $431,000 grant to Mexico’s Ministry of Communication and Transport for the design and development of a modern intelligent transportation system; and technical assistance to Nacional Financiera to assist in the development of an advanced Venture Capital industry in Mexico.

While much has been accomplished, we dare not be complacent—for at least two reasons. First, there are many small towns and rural areas throughout central and southern Mexico which have not yet been touched by our efforts. Second, we know that all around the world, and notably in major economies like China and India, the spirit of enterprise is awakening.

To meet the challenge of global competition, we must strengthen cooperation under the partnership. We must create jobs where they are needed most, and to foster an environment in which no Mexican feels compelled to leave his home for lack of jobs or opportunities.

Private sector investment and corporate citizenship play integral roles in reaching this goal. The well-being of Mexico’s citizens and the vibrancy of its communities can be positively affected by private sector influence. I am delighted that we will award the first U.S.-Mexican Good Partner Award for corporate citizenship this evening. This award demonstrates better than anything else the important social impact that Mexican and U.S. companies can have on their communities and the contributions the private sector can make in advancing social and economic development in Mexico.

The Partnership is driven by the synergy generated between the public and private sectors. Our optimism is born of the private sector engine in this alliance – companies doing business to foster economic integration, growth and competitiveness. I am pleased to see so many of you here – people who care about creating economic opportunities for the average Mexican. I look forward to working with you as we continue our efforts to fulfill the aspirations of our Presidents and our citizens – for commerce, jobs, education, and opportunity in a prosperous future.

Thank you.