World Report

In a region of economic turmoil, Mexico vindicates the British government’s confidence in its stability and its potential to thrive

-In a region of economic turmoil, Mexico vindicates the British government’s confidence in its stability and its potential to thrive

hen President Vicente Fox visited the UK in November 2002, he was carrying out one of the new administration’s most important foreign policy objectives: strengthening political and economic ties with Europe, especially with those nations that have key trading and investment relationships with Mexico. Prime Minister Tony Blair had already met Mexico’s new President a few months earlier, shortly after his election. Their friendship was cemented by Mr Fox’s return visit.

When Mr Fox arrived in London, he embarked on a hectic round of meetings with leading British political, financial and academic figures. In addition to officially opening the Mexican embassy’s new chancery, he also inaugurated the largest-ever exhibition devoted to the Aztecs to be held abroad, at the Royal Academy of Arts, as well as launching a faculty for Mexican studies at Oxford University.

These three events alone demonstrate the high priority Mexico attaches to its presence in Britain.
Britain and Mexico have a long history of close relations, both economic and cultural. Mexico is part of the North American Free Trade Agreement (Nafta), and no country in Europe has a greater stake in Nafta than Britain – it is the largest investor in the US, and the second in importance in both Canada and Mexico. A few years ago, Britain also urged her EU partners to negotiate a landmark co-operation agreement with Mexico. This unique accord has led to impressive growth in trade and investment links between Mexico and EU member states.

Britain’s presence in Mexico has continued to grow. The latest expression of the British financial community’s confidence in the country was HSBC’s decision last year to purchase one of Mexico’s largest retail financial institutions for over £600 million. There is plenty of potential for further mutually beneficial exchanges.

The country now boasts a vibrant, vocal civil society

In a region buffeted by political and economic turbulence, Mexico stands out with its record of stability and its potential for long-term growth. It is also one of the few developing economies to continue to attract high levels of foreign direct investment. With the world’s ninth largest economy, global trading relationships worth over £190 billion a year and free-trade agreements with over 30 nations, it is not surprising that the international rating agencies have awarded Mexico investment-grade status. The government is committed to reducing inflation and exchange volatility through sound monetary and fiscal policies, and has consistently improved the country’s business environment.

Andrés Rozental
‘Mexico is becoming a leading actor on the global stage’

Since Mr Fox’s election, Mexico has also experienced profound social change; the country now boasts a more democratic political process, a greater respect for human rights, a commitment to the fight against corruption, and an increasingly vibrant and vocal civil society.
The country has embarked on a more active foreign policy, deepening its relationships with its Nafta partners, the US and Canada, while at the same time seeking to play a prominent role on the international stage as an elected non-permanent member of the UN Security Council.

In March 2002, Mexico hosted the UN Summit on Financing for Development in the northern city of Monterrey. Over 50 heads of state pledged the international community to a new programme aimed at meeting the needs of the developing world.

Just a few months ago, the state of Baja California Sur was the venue for the annual Asia Pacific Economic Co-operation Summit, which brought over 30 heads of state to Mexico to further deepen the integration of the world’s most dynamic economic region. And this year, Mexico will host two very important regional conferences on hemispheric security and on the free trade for the Americas initiative.
These multilateral commitments confirm Mexico’s standing as a leading global actor.

As a former Ambassador to the UK and as current President of the Mexican Council on Foreign Relations, I would like to urge our British friends to visit Mexico and see for themselves why this country ranks as one of the most attractive for trade, investment, tourism and cultural exchanges. Mexico is a warm and friendly nation, welcoming 20 million travellers each year from almost every country in the world. Whether they come on business or as tourists or students, visitors from the UK will always find a warm welcome and abrazo from their Mexican hosts.