Speeches 

President Calderon, Foreign Minister Patricia Espinosa, Ambassadors Angelica Arce and Cecille Hillyer, distinguished guests, ladies and gentlemen.

I am pleased to welcome you here today, with representatives from keyNew Zealand companies trading with Mexico, and to outline to you the importance New Zealand places on an enhanced economic relationship with Mexico.

Mexico is by far our most important trading partner in Latin America.

- Two-way trade last year totalled nearly US$400 million; approximately US$275 million from New Zealand and US$90 million from Mexico.

- Our economies are complementary.

- Mexico is one of New Zealand’s key markets for dairy products. It is also important for meat and agricultural technology exports.

- We import a growing number of vehicles, electronic equipment and beverages from Mexico.

Both governments recognise that the bilateral trading relationship can – and should – be stronger.

In 2005, we established a Joint Experts’ Group (or JEG) with the aim of lifting our economic relationship to the same level as our political relationship.

The JEG produced an excellent report that highlights the opportunities for greater cooperation between us and considers ways to achieve this.

New Zealand has made it clear that we would be keen to conclude a formal ‘Closer Economic Partnership’ or ‘Free Trade Agreement-plus’, to achieve more than just a reduction of tariffs. We prefer trade agreements that include elements of strategic cooperation as the basis for closer economic integration. Such is the case with our agreement with Chile, which agricultural producers there have moved from initially fearing to now supporting enthusiastically.

An FTA-plus with Mexico would be mutually beneficial.

New Zealand is a reliable supplier of safe, high quality foods. An enhanced FTA would expand the choice of products and source of supply available to Mexican importers and consumers. We aim to compete fairly with other countries operating in the Mexican market, that don’t face the same trading barriers we do, such as the United States, Chile and Uruguay.

And while New Zealand has one of the most open economies in the world, Mexico could improve its access to New Zealand markets and increase its exports in key sectors including: vehicles, machinery, petroleum, beverages, textiles, clothing, footwear, fruit, coffee and minerals. At present it has only 1-3% of the import market for these products.

An enhanced FTA would also make Mexico a much more attractive investment destination for New Zealand.

Agriculture is often seen as politically sensitive, but in fact our agricultural sectors are largely complementary. New Zealand does not export items that are most sensitive for Mexico such as grains, poultry and pork.

Our current overall share of meat imports into Mexico is less than 2% of total meat imports.

Mexico’s dairy industry is largely structured around liquid milk production. New Zealand does not ship liquid milk to Mexico.

Our expertise in agricultural technology and production can help enhance the efficiency and technology of Mexico’s agricultural sector – including through collaborative joint ventures.

As you will hear from the companies here today, New Zealand agritech and horticultural research represents an opportunity for Mexican farmers, not a threat.

More broadly, I see opportunities for enhanced cooperation in other fields – education, science and technology, or tourism – under a closer trade relationship.

An FTA is also important so that Mexican importers do not lose ground in the face of increasing competition in the supply of manufactured goods to the New Zealand market as we conclude new free trade agreements such as with China.

Mr President, New Zealand much values its overall relationship with Mexico. We cooperate closely on areas such as disarmament where we are both members of the new Agenda Coalition, on environment issues, foreign policy and trade policy. Our outlook and values are similar; we enjoy each other’s company. Mexico is a key country for us in our strategy of enhancing our relationship with Latin America.

I had the pleasure of visiting Mexico in March, and Agricultural Minister Anderton visited in July. I look forward to taking our partnership forward as we progress the Joint Experts’ Group’s recommendations.

I would now like to ask Charles Finny, Chief Executive of the Wellington Chamber of Commerce to introduce those who will make presentations this morning.

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