Sat, 26 Aug 2000

Mexico dreaming of United America

By Eva Karnovsky

BUENOS AIRES (DPA): Although he does not officially take power for another three months, Mexico's newly elected president, Vicente Fox, has already proved he is short of neither ideas nor initiative. He would like to make the Mexico of low pay and unskilled workers a thing of the past and stem the flow of emigrants who try their luck in the United States.

Fox believes the North American Free Trade Association (NAFTA), the trade organization linking Mexico, the United States and Canada, should help Mexico free itself of the shackles of underdevelopment. While visiting Ottawa and Washington, Fox pointed out that any economic leap by Mexico would also benefit his hosts.

His is a simple equation: decent living wages in Mexico equals fewer illegal immigrants in the North. Fox believes the interests of all three NAFTA partners would be best served by reforming the association along the lines of the European Union. The United States and Canada would thus gain access to a market of 100 million Mexicans and the latter could take a step up to the First World.

As a first move towards further integration, Fox proposes establishing a fund of between US$10 and $25 million to finance projects aimed at combating the drug trade and illegal immigration.

However, in the United States in particular, there are signs of increasing resistance to closer integration of NAFTA. Americans fear that -- contrary to Fox's prediction -- this would result in more illegal immigrants, not fewer.

Fox can counter these concerns only by embarking on a process of modernization -- for instance by reforming the Mexican legal system with a view to cracking down on corruption. This would increase confidence among his neighbors, who might then be more willing to consider closer ties with Mexico.