SACRAMENTO BEE

September 13, 2007

Investments urged to spur Mexico's growth

Mexican ambassador says jobs could curb illegal immigration.

By Susan Ferriss - Bee Staff Writer

Private and foreign investment must be lured to Mexico's underdeveloped areas if illegal migration is to be stopped, Mexico's ambassador to the United States on Wednesday told a group of business leaders gathered in Sacramento.

Such investment would create higher-paying jobs, Ambassador Arturo Sarukhan told members of the California Chamber of Commerce.

But the Mexican government continues to believe, he said, that both countries can benefit from a regulated program that would allow Mexicans to fill job shortages in the United States.

"At the end of the day, comprehensive immigration reform in the United States will have to start in Mexico," Sarukhan said.

"Mexico can't plot out a route to economic prosperity if it is losing talented women and men who cross this border," he said. "We have to do our part. We're also looking to engage with the U.S. in ensuring that we can mix and match labor and market."

Sarukhan described two typical reactions from discussions about Mexico and the United States: "Naysayers who say everything is a mess ... and those who believe Mexico and Mexicans are a threat."

Those reactions say "a lot about the challenges" facing those trying to develop stronger economic and security ties, he said.

Saruknan, who was greeted warmly, spoke at one of the luncheons the chamber organizes as part of its efforts to hear from world leaders about international trade and investment. About 60 members heard his remarks, according to a chamber spokeswoman.

Mexico is the state's top export market, according to data from the chamber. Its $19.6 billion in purchases represents 15 percent of all California exports.

Sarukhan told the audience it was "extremely hard" to understand the intense opposition in the United States to Mexican trucks entering U.S. territory on a trial program. The Senate on Tuesday voted to ban Mexican trucks from U.S. roadways.

The trial program would have allowed U.S. truckers into Mexico, the ambassador said, and could have resulted in savings for U.S. consumers because of smoother cross-border trucking.

The opposition, Sarukhan said, contributes to a "growing and nagging perception" in Mexico that the United States expects Mexico to play by trade rules but isn't willing to do the same.

About 70 percent of all U.S.-Mexico trade is by land, he said.

Security cooperation has increased so much since the 9/11 terrorist attacks, he said, that a significant portion of Mexican-made goods entering the United States is now pre-inspected for U.S. customs clearance before it leaves Mexican soil.

The cargo is then subjected again to more scrutiny as it enters through special border lanes. That pre-inspected cargo alone is the equivalent of all the U.S. trade with France and Great Britain, Sarukhan said.

"I think that's a very powerful message," Sarukhan said, "to those who believe Mexico is not interested in border security."

Sarakhun also spoke about his country's declining birth rate and expressed concern about the pressure that will fall on small farmers when tariffs under the North American Free Trade Agreement on U.S. farm exports to Mexico are lifted in 2008.