VZCZCXRO4395
PP RUEHCD RUEHGD RUEHHO RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHMC #0442/01 3351840
ZNR UUUUU ZZH
P 011840Z DEC 09
FM AMCONSUL MONTERREY
TO RUEHC/SECSTATE WASHDC PRIORITY 4130
INFO RUEHME/AMEMBASSY MEXICO PRIORITY 5215
RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHMC/AMCONSUL MONTERREY 9757

UNCLAS SECTION 01 OF 03 MONTERREY 000442 
 
(CORRECTED COPY) 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EIND EINV PGOV ASEC ECON MX
SUBJECT: MEXICO BUSINESS SUMMIT FOCUSES ON THE FUTURE 
 
MONTERREY 00000442  001.2 OF 003 
 
 
Summary 
 
------- 
 
 
 
¶1.  (U) The 2009 Mexico Business Summit, "Beyond the Crisis, 
Creating a Vision for a New Era," held in Monterrey November 8 - 
10, brought together prominent leaders from business, government 
and academia.  Major topics at this year's Summit included North 
American economic development (particularly in the health care 
and alternative energy sectors), the importance of 
infrastructure improvements for Mexico's economy, reform of 
NAFTA, and the effects of the security situation on U.S. - 
Mexico trade.  Ambassador delivered the keynote address at the 
closing plenary session of this annual event, which is modeled 
on the World Economic Forum.  Other participants included 
billionaire businessman Carlos Slim, President Felipe Calderon, 
Colombian President Alvaro Uribe (via a prerecorded speech), and 
former Costa Rican President Oscar Arias. 
 
 
 
Joint Economic Competitiveness, Trade Development 
 
--------------------------------------------- ---- 
 
 
 
¶2.  (U) Ambassador and Consul General attended Monterrey's 2009 
Mexico Business Summit, held November 8 - 10, which focused on 
creating an economic vision for Mexico's future.  The more than 
20 panel discussions, debates, and speeches that occurred during 
the three-day event emphasized U.S. - Mexico economic issues. 
Numerous participants in the conference, including Carlos Slim, 
former U.S. Secretary of Commerce Carlos Gutierrez, and Carlos 
Guzman, President and CEO of Hewlett-Packard, Mexico, 
highlighted the impact of Chinese economic pressure on both 
economies.  Summit participants identified the outbreak of the 
H1N1 virus, the worst drought in 60 years, the ongoing recession 
and its corresponding reduction in remittances from the United 
States, border security and violence, and the decline in oil 
prices as the biggest short-term obstacles facing the Mexican 
economy. 
 
 
 
¶3.  (U) Ambassador stressed that NAFTA has led to an 
unprecedented integration of the North American economy and 
that, since its implementation, the U.S. and Mexican economies 
have become increasingly interconnected.  He noted that neither 
the U.S. nor Mexico can afford to stop the integration process 
and that deeper economic cooperation and increased cross border 
trade will be essential to maintain competitiveness in the 
global economy. 
 
 
 
The Healthcare Sector 
 
--------------------- 
 
 
 
¶4.  (U) Billionaire Carlos Slim, whose holdings include TelMex 
and Saks Fifth Avenue, called the U.S. health care system 
"broken" and, in remarks echoed by other speakers, hoped that 
healthcare reform in the U.S. would create economic growth 
opportunities for Mexico.  Summit participants identified 
several healthcare sector opportunities for Mexico in the 
bilateral relationship with the U.S., including:  1) the chance 
to be the prime destination for the storage and maintenance of 
U.S. electronic medical records; 2) medical tourism and 
potential changes in U.S. law to allow  Medicare reimbursement 
for services provided in Mexico; 3) the migration of Mexican 
nurses to the U.S. to alleviate the nursing shortfall there; and 
4) developing Mexico as a research and development site for the 
pharmaceutical industry, especially for clinical trials. 
 
 
 
Climate Change and Opportunities in the Alternative Energy Sector 
 
--------------------------------------------- -------------------- 
 
 
 
¶5.  (U) Juan Carlos Marroquin, the President of Nestle in 
Mexico, and Daniel Servitje Montull, the CEO of Grupo Bimbo (a 
 
MONTERREY 00000442  002.2 OF 003 
 
 
Mexican food conglomerate and one of the biggest baked goods 
companies in the U.S.) urged Summit participants to view global 
climate change as an economic opportunity for Mexico's renewable 
energy sector.  Ambassador emphasized the economic opportunities 
that could be created through increased bilateral cooperation on 
climate change and alternative and renewable energy development 
projects, especially if the U.S. adopts a cap and trade system 
in which energy from Mexican alternative energy sources could 
provide offsets in the U.S.  He added that the U.S. currently 
generates about 10 percent of its energy with renewable sources, 
while in Mexico the number is still below 4 percent. 
 
 
 
NAFTA 2.0? 
 
---------- 
 
 
 
¶6.  (U) Many Summit participants discussed the need for 
reforming NAFTA and called for a "NAFTA 2.0," but there was no 
consensus on what a new trade agreement would actually look 
like.  Rather, participants seemed to be using the phrase NAFTA 
2.0 as a platform for introducing the changes they thought were 
necessary to fully realize the benefits of the original 
agreement.  Rafael Fernandez de Castro, Foreign Policy Advisor 
to President Calderon, agreed with the need to "modify NAFTA." 
He said the most pressing concern is the resolution of the 
cross-border trucking issue, which stifles opportunities for 
Mexican exports.  Alan Stoga, President of Zemi Communications, 
a New York public relations firm, agreed, calling the failure to 
resolve the trucking issue "obscene."  In a similar vein, Jaime 
Serra Puche, an architect of NAFTA and an advocate for increased 
economic integration, said that the USG's Buy America program 
violates NAFTA and is a hindrance to true free trade. 
 
 
 
¶7.  (U) Along with those concerns about specific NAFTA 
provisions and calls for changes in trade policy, Professor 
Robert Pastor, Co-Director of the Center for North American 
Studies at American University argued that difficulties at the 
border are an obstacle to increased North American trade and 
hinder a full realization of NAFTA's benefits.  Pastor estimated 
that, despite the implementation of NAFTA, bureaucratic 
inefficiencies, customs procedures, and security requirements 
add between 10 and 12 percent to the cost of cross-border 
transactions.  During his closing remarks, Ambassador urged the 
audience not to see the border as only a security issue, but as 
a "multidimensional phenomenon" that involves infrastructure, 
technology, and economic opportunity as well.  For example, he 
noted that streamlined customs procedures would not only 
expedite trade in goods and reduce transaction costs, but would 
also improve security. 
 
 
 
The Need for a "Mexican Brand" 
 
------------------------------ 
 
 
 
¶8.  (U) Panelists in various sessions agreed that, whatever 
obstacles exist for Mexico in the U.S. market (such as Buy 
America or the unresolved trucking dispute), Mexico should 
better position itself to attract foreign direct investment and 
increase its exports.  While discussing economic development and 
ways to attract foreign direct investment, President Calderon 
told the audience that Mexico must develop a clearer vision 
about its economic future. 
 
 
 
¶9.  (U) David Clifton, General Director of Interbrand Mexico and 
Luis Ferezin, General Director of Accenture in Mexico, used the 
President's statement as a springboard for their presentation on 
the need to develop a "Mexican Brand."  They argued that the 
most important attributes to attract foreign investment are good 
infrastructure, highly developed educational systems, access to 
global markets, capacity for research and innovation, and 
technological preparation.  Mexico does not have a world class 
brand in those areas.  To emphasize their point, they compared 
Mexico to Brazil.  While Brazil is often cited as an example of 
successful development, they said Mexico is a more successful 
country in terms of exports, GDP and, literacy rates.  In order 
to take advantage of the foreign direct investment that could 
come from a more recognizable "Mexican Brand," as Brazil has 
 
MONTERREY 00000442  003.2 OF 003 
 
 
done, Ambassador Pascual called on Mexican businesses to better 
coordinate their networking and communications strategy. 
 
 
 
Security Remains a Top Concern 
 
------------------------------ 
 
 
 
¶10.  (U) Although the security situation was not a topic of any 
particular Summit session, underlying all of the conference 
discussions about economic development and investment 
opportunities was the continued violence tied to the drug trade 
and its impact on the business climate.  Ambassador pointed out 
in his closing remarks that narco-violence is not a national or 
bilateral problem, but part of a "hemispheric scourge."  He said 
that community organizations and community police work are key 
to improving the situation in Mexico and are Merida Initiative 
hallmarks.  He described how initial Merida Initiative 
successes, such as the recent downturn in violence in Tijuana, 
demonstrated that an active community working with local police 
and law enforcement can be an effective tool in reducing 
narco-violence. 
 
 
 
¶11.  (U) This cable was cleared by the Ambassador. 
WILLIAMSONB