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RUEHQU RUEHRD RUEHRS RUEHTM RUEHVC
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ZNR UUUUU ZZH
R 041802Z FEB 09
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 4901
RUEHC/DEPT OF LABOR WASHINGTON DC
INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE
RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RHMFISS/CDR USSOUTHCOM MIAMI FL
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC

UNCLAS SECTION 01 OF 02 MEXICO 000288 
 
SIPDIS 
 
STATE FOR DRL/AWH AND ILSCR, OES, EEB AND WHA/MEX - 
WOLFSON, USDOL FOR ILABE 
 
E.O. 12958: N/A 
TAGS: ELAB SENV PGOV PINR CEC KSTT MX
SUBJECT: OBAMA-CALDERON MEETING RAISES EVENTUAL POSSIBILITY 
OF IMPROVING NAFTA SIDE AGREEMENTS 
 
REF: MEXICO 0131 
 
 
¶1.  Summary: As noted in reftel, the January 12 meeting 
between then President-elect Obama and Mexican President 
Felipe Calderon generated extensive coverage and commentary 
in Mexico,s national media.  A significant portion of this 
media coverage focused on NAFTA and President Calderon,s 
opposition to a wholesale renegotiation of the free trade 
agreement.  This opposition notwithstanding, President 
Calderon has publicly expressed a willingness to build on 
NAFTA,s accomplishments by strengthening the side accords 
connected to the free trade agreement in the areas of labor 
and environmental standards.  The only one of Mexico,s major 
national labor organizations to react publicly to Calderon,s 
comments did so in a positive fashion.  While it is 
undoubtedly encouraging that the GOM is prepared to discuss 
the labor standards associated with NAFTA, the politics 
surrounding Mexico,s 2009 mid-term congressional elections 
may prevent any serious action on the matter until at least 
September of this year.  End Summary 
 
 
PRESS COVERAGE OF OBAMA ) CALDERON MEETING 
------------------------------------------ 
 
¶2.  The January 12 meeting between then President-elect Obama 
and Mexican President Felipe Calderon generated extensive 
coverage and commentary in the country,s national media 
(reftel).  One of the main points stressed in the reporting 
on the meeting was President Calderon,s strong opposition to 
a renegotiation of NAFTA.  Calderon was repeatedly quoted as 
saying that the topic of renegotiating the free trade 
agreement (FTA) did not specifically come up during the 
meeting because then President-elect Obama was well aware of 
Mexico position on re-opening NAFTA.  However, during 
interviews following the meeting President Calderon did 
express his government,s willingness to build on the 
accomplishments of NAFTA by focusing on those areas that were 
clearly of interest to both countries. 
 
¶3.  The Mexican President was quoted as specifically citing 
labor and environmental issues as areas of mutual interest. 
In elaborating on his openness to the idea of revising those 
aspects of the FTA that reflects the values of both 
countries, President Calderon made reference to the NAFTA 
side agreements on labor and the environment.  Many of the 
media reports covering the Obama/Calderon meeting touched on 
the idea of the NAFTA countries participating in some form of 
consultative group as a possible forum for revising the labor 
elements connected to the FTA. 
 
¶4.  Mexico,s Official Presidential website cited President 
Calderon describing to the press his concurring with 
President Obama on the need for our countries to lead 
together on environmental issues, one from among the 
developing and the other from among the developed.  President 
Calderon told President Obama about Mexico,s environmental 
agenda and he described to the press how Obama had already 
been informed about these issues and had then congratulated 
Mexico on the steps it had taken and its decision to continue 
on this positive path. 
 
 
NAFTA,S LABOR SIDE AGREEMENT 
---------------------------- 
 
¶5.  In its reporting on the Obama/Calderon meeting the 
newspaper Reforma, one of Mexico,s largest national dailies, 
included a brief discussion and analysis of the NAFTA side 
agreement on labor.  Specifically citing the accord by name, 
the North American Agreement on Labor Cooperation (NAALC), 
Reforma,s comments indicated that the agreement was not 
particularly effective.  It characterized the NAALC as an 
instrument more designed for investigation as opposed to 
being a mechanism for taking direct action.  The newspaper 
went on to state that it knew of no sanctions imposed under 
the NAALC since it was signed in 1993. This assessment was 
also shared by the one labor organization to publicly react 
to the President Calderon,s comments (see para 7 below) as 
well as by the Authentic Labor Front (FAT) a left leaning 
 
MEXICO 00000288  002 OF 002 
 
 
labor federation with ties to Mexico,s main opposition 
party, the Center for Worker Support (CAT) a labor rights 
advocacy NGO based in the central Mexican state of Puebla and 
by the AFL-CIO office in Mexico. 
 
 
NAFTA,S ENVIRONMENT SIDE AGREEMENTS 
----------------------------------- 
 
¶6.  The Commission for Environmental Cooperation (CEC) was 
established by Canada, Mexico and the United States in 1994 
to address trans-boundary environmental concerns in North 
America.  While the decision to create such a commission 
originated during the negotiations of the NAFTA, it derives 
its formal mandate from the North American Agreement for 
Environmental Cooperation (NAAEC).  The NAAEC builds upon, 
complements and supports the environmental provisions 
established in NAFTA.  It creates a North American framework 
whereby trade and environment related goals can be pursued in 
an open and cooperative way.  The agreement helps prevent 
trade distortions or new trade barriers between the NAFTA 
partners. 
 
 
LABOR SUPPORT FOR REVISING LABOR SIDE AGREEMENT 
--------------------------------------------- -- 
 
¶7.  Only one of Mexico,s major national labor organizations 
reacted publicly to Calderon,s comment on strengthening the 
NAFTA labor side agreement.  The National Workers Union (UNT) 
is Mexico,s second largest national level labor federation 
with close ties to the country,s main opposition political 
party, the Party of the Democratic Revolution (PRD).  The UNT 
was essentially positive; according to leader, Francisco 
Hernandez Juarez, the procedures mandated by the labor side 
agreement for investigating a worker,s complaint regarding 
their labor rights were &bureaucratic and terribly slow.8 
Moreover, he said, even when a complaint of labor rights 
violations is resolved in favor of a worker the NAFTA labor 
side agreement does not obligate either a government or a 
business to take any corrective action. 
 
FACTORS THAT MAY DELAY REVISING THE AGREEMENTS 
--------------------------------------------- - 
 
¶8.  Although President Calderon has indicated his willingness 
to review the NAFTA labor side agreement, internal domestic 
factors may delay any quick action on the matter.  At 
present, Calderon,s party, the National Action Party (PAN), 
commands a plurality in both houses of the Mexican Congress. 
However, in July 2009, Mexico will hold mid-term 
congressional elections for the House of Deputies.  At this 
time, most polls indicate Mexico,s former ruling party, the 
Institutional Revolutionary Party (PRI), will gain seats at 
the PAN,s expense and become the leading party in this 
house. 
 
¶9.  We expect the Calderon administration will be focused 
primarily on the upcoming elections over the next six months. 
 Once the mid-term elections are over, even assuming the PAN 
retains its plurality, the new congress will not convene 
formally until September at which point the Calderon 
administration would commence consultation with the new 
congress.  Consequently, it does not appear that any serious 
discussion of revising the NAALC will be possible prior to 
September 2009. 
 
 
COMMENT 
------- 
 
¶10.  Events in Mexico may well prevent detailed discussions 
on revising the NAFTA labor side agreement in the immediate 
future.  Nevertheless, the fact that the GOM is willingly to 
talk about improving labor (and environmental) standards 
creates an opening for possible constructive dialogue. 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity and the North American 
Partnership Blog at http://www.intelink.gov/communities/state/nap / 
BASSETT