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UNCLAS SECTION 01 OF 02 MEXICO 001020 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PINR ECON EFIN MX
SUBJECT: PRESIDENT CALDERON SEEKS INVESTMENT FOR MEXICO,S 
HIGH MIGRATION AREAS AND REFORMULATION OF NADBANK 
 
¶1. (SBU) Summary: Speaking three months after taking office, 
President Calderon offered his perspective of why Mexico is 
uniquely positioned to become one of the world's leading 
investment destinations and gave an overview of progress on 
his three priorities: security and the rule of law, poverty 
reduction, and job creation.  He specified the need to make 
the NADBank (NADB) more responsive to the needs of both 
Mexico and the U.S., and stated that he will approach 
President Bush in the near future with a proposal to expand 
the Bank's mandate.  End summary. 
 
¶2. (SBU) President Calderon on February 27 congratulated the 
American Chamber of Commerce in Mexico on its 90th 
anniversary and expressed gratitude for the contribution 
member companies have made to the country's development.  He 
noted that 63 percent of Mexico's USD 19 billion in foreign 
direct investment last year came from U.S. companies, and 
said he perceived a growing international trust in Mexico's 
institutions and public policies. 
 
¶3. (SBU) Marketing his country, Calderon identified Mexico's 
economic advantages: macroeconomic stability, including low 
interest rates, a strong stock market and low country risk; 
its strategic location next to the world's largest economy; 
its network of international trade agreements; its vast 
natural resources, including oil and diverse agricultural 
products; and positive trends in public finances resulting 
from surplus oil revenues.  Calderon added that Mexico's 
attractiveness as a leading country for investment is 
bolstered by the country's sound democracy and strong 
institutions, its vibrant culture rooted in Latin America and 
connected to North America, and a "demographic bonus," with a 
young, economically active population that averages 27 years 
of age. 
 
¶4. (SBU) Calderon offered an overview of progress on his 
government's three priorities: establishing security and the 
rule of law; fighting poverty; and creating jobs.  He 
explained that the GOM has significantly increased the 
security budget and initiated surge operations in some of 
Mexico's most lawless states, using the strength of the 
federal government to recover control from drug traffickers 
and organized crime (septel).  Cautioning that this will be a 
long struggle that will cost lives and money, the president 
said "it's a fight we have to fight" and promised to be 
relentless in enforcing Mexico's laws and giving 
Mexicans--and investors--the security and confidence they 
deserve. 
 
¶5. (SBU) With regard to attacking poverty, Calderon listed a 
number of policy proposals and thanked the congress for its 
work to increase the number of health insured families from 
five million to seven million.  Accepting that the government 
does not have the resources to give all Mexicans adequate 
medical insurance, he reiterated his pledge to ensure health 
coverage for all children born during his administration. 
Calderon added that the GOM is working on programs to help 
women join the workforce, by creating day care centers and 
other support projects.  In addition, it will pay the social 
security premium for the first year of employment of all new 
employees brought into the formal sector. 
 
¶6. (SBU) Calderon hailed the February 23 announcement of a 
pilot program for cross-border trucking as a firm step to 
replace the current inefficient and costly system for 
U.S.-Mexico truck traffic.  He noted that within two months, 
the first Mexican companies would start transporting products 
directly from Mexico to their U.S. customers.  He hailed this 
opening as a historic step to improve U.S.-Mexican trade, 
benefiting producers and consumers. (Note:  The pilot program 
for 100 U.S. and 100 Mexican companies will allow Mexican and 
U.S. trucks to travel past the 25-mile commercial zone along 
the border for the first time since 1982.  Estimated savings 
are USD 400 million a year.  End note.) 
 
¶7. (SBU) The president emphasized the need to channel 
investment toward the regions of highest migration, linking 
job creation with curbing migration, and spelling out his 
vision of a country where all Mexican men and women have 
their own jobs and don't need to leave in search of 
employment.  He praised the opening of avocado exports from 
Michoacan, his home state, to California and Florida, 
 
MEXICO 00001020  002 OF 002 
 
 
boasting that a state that has been among the biggest 
exporters of migrants is now the world's largest exporter of 
avocados.  While offering his respect for U.S. autonomy, the 
president also took a swipe at the border "wall" by saying he 
believed investing in one kilometer of road in a poor state 
like Zacatecas, Guanajuato, or Michoacan, would have more 
impact on reducing migration than investing in 10 kilometers 
of border fencing in Texas or Arizona. 
 
¶8. (SBU) President Calderon then offered his proposal for a 
reformulation of the North American Development Bank (NADB) 
that would expand its mandate to go beyond environmental 
projects and include infrastructure in general and other 
projects in areas experiencing the largest migration.  He 
also called for increasing the limit on the total amount of 
loans available to a single debtor.  Calderon turned to 
Ambassador Garza and asked him to take the message to 
President Bush that the GOM will be proposing this 
reformulation, acknowledging that he understands that 
changing the NADB's mandate would require congressional 
approval in the U.S. and Mexico.  Calderon also hailed 
Mexico's February 26 signing of a Memorandum of Understanding 
with the Inter-American Development Bank (IDB) for IDB 
guarantees and possible financing for up to USD 2.5 billion 
for infrastructure projects. 
 
¶9. (SBU) Calderon noted that a study completed by Goldman 
Sachs indicates that Mexico could become the world's fifth 
largest economy by 2040 if the GOM makes the right decisions 
now.  He pledged to make those right decisions, saying he 
wants Mexico to be among the top investment destinations in 
the world.  The president concluded by affirming his 
commitment to the rule of law, and assured his audience that 
Mexico is on the right path. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity 
GARZA