Mexican President Vicente Fox supports a North American Free Trade Agreement deal for energy, saying it's the best way to protect the continent's prosperity.
'"We need to make the best and most efficient use of energy to keep this region of the world competitive,'' Fox said last week after meeting with a selection of Canada's energy leaders in Calgary.
"We must be strong producers and developers of energy,'' said Fox, who was in Western Canada for a two-day visit. "We have to protect our jobs in this region from other blocks in the world that are very aggressive and competitive.'' Fox said with Canada, the United States and Mexico all losing jobs to China and Asia, an energy pact is the next logical step. "To meet this competitive challenge and protect jobs, we must work together,'' he said.
Mexican officials are hoping that the two-day trip to Alberta and British Columbia will lead to expanded business ties. Fox also met with Canadian leaders in mining and transport.
In a luncheon speech in Calgary, Fox stressed that his country is open for business and that he is making moves to make the energy industry more attractive to foreign investors.
"I (have) emphasized my commitment to modernize Mexico's energy sector,'' said Fox, who leads a minority government.
"Despite clear political opposition, we're making efforts to strengthen our energy sector to meet the fuel, gas and the electric power demands of the next generation of Mexicans.'' Mexico's constitution has strict protectionist laws which has had companies shy away from investment. But Fox said the purpose of this visit is to dispel those concerns. The president said about two-thirds of the $20 billion US invested in Mexico energy each year comes from private companies.
"It's being done,'' he insisted. "Even though there are limits for foreign and private investment, we have found ways and means to invite private investment.'' Fox said a decade with NAFTA has been very successful for his country and he would like to see it expanded.
"We want to further extend this investment - not only in trade, but to have a NAFTA policy in energy, a NAFTA security policy, NAFTA markets in financing policies.'' The Mexican president also said he supports Canada's call for a stronger dispute-resolution mechanism in NAFTA. Canada has been frustrated by the U.S.'s refusal to abide by rulings in Canada's favour, most noticeably in softwood lumber.
"We agree with Canada,'' he said. "It's become so big and huge, the trading among ourselves. That itself shows the needs (for) dispute mechanisms that will meet problems that arise from such strong activities between our countries.''
