http://www2.eluniversal.com.mx/pls/impr ... abla=miami

U.S.: NAFTA members must take on China

BY OLGA R. RODRIGUEZ /Associated Press
May 14, 2005

SAN PEDRO GARZA GARC�A, Nuevo León U.S. Secretary of Commerce Carlos Gutierrez told a summit of Mexican, U.S. and Canadian officials Friday that much of the 11-yearold North American Free Trade Agreement needs to be updated so the region can compete with Europe and China.

Speaking to a group of business and government officials in this wealthy, northern town, Gutierrez said NAFTA, groundbreaking when it began in 1994, doesn't address issues raised by recent terrorism concerns and the emergence of economic powerhouses like China.

Canada, the United States and Mexico are already discussing ways to expand and modernize NAFTA with a still-developing agreement dubbed NAFTA-plus.

Gutierrez called on the three nations to change regulations and tear down remaining barriers to trade.

"Our mission is to ensure North America remains the most open, the most vibrant, competitive market in the world," he said.

He said a top regional challenge was balancing security along the border with the free flow of trade.

"Our borders must be sealed shut to terrorists," he said. "But they must remain open to trade." He warned that the European Union and China were trying to replace North America as the world's leading economic block, and said the only way the region can compete is by getting rid of outdated rules that make it difficult for companies to move their products within the three countries.

Gutierrez was scheduled to meet with his Mexican counterpart later Friday, and the two were expected to give a press conference immediately afterward.

The U.S. commerce secretary's comments helped wrap up this week's meeting, which has also focused on North American migration issues and energy shortages.

Earlier Friday, U.S. Ambassador to Mexico Tony Garza said Mexico needs to reform its energy sector to keep from falling behind.

"Mexico must find a way to more fully exploit its energy resources because its competitiveness and the prosperity of its own people depend on it," he said.

Garza said border violence especially among drug traffickers continues to be a problem, and he called on both Mexico and the United States to work to stop it.

"The bottom line is that we simply can't allow drug traffickers to jeopardize all that we have accomplished," Garza said.

He defended his recent recommendation adopted by the U.S. government that the U.S. State Department extend a travelers' warning to Mexico.

"I did this not because I have any interest in criticizing Mexico, but because the safety and security of U.S. citizens is my primary responsibility, and I will not hesitate to speak out when their safety is at stake," he said.

Mexican business leaders used the meeting as an opportunity to call on U.S. President George W. Bush to follow through on promises to create a migration accord that would allow more people to work legally north of the border.

Fox is also pushing Bush to take up the issue again after the U.S. president approved new immigration measures that make it harder for undocumented migrants to get a driver's license and that allow officials to extend a wall along the CaliforniaMexico border.