Chinese President Xi Jinping’s Visit to Mexico

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Here is a link to my latest article on AQBlog, titled “Chinese President Xi Jinping’s Visit to Mexico“, published on June 5th, 2013. Please feel free to visit and comment. Here is a verbatim copy of it in case you prefer to read it on my personal blog, though I recommend actually going to the site because of additional content, other blogger’s articles, etc.

In 2002, former Mexican President Vicente Fox was recorded telling Cuban leader Fidel Castro over the phone, “You’ll eat and then you’ll leave” (“comes y te vas”) days before the UN Financing for Development Conference was held in Monterrey. Fox was referring to an evening dinner for heads of state hosted by the Mexican government and the reason for his request for a quick departure was to avoid George W. Bush and the Cuban leader crossing paths.  

These four words became symbolic of the National Action Party’s (Partido Acción Nacional—PAN) abandonment of the Institutional Revolutionary Party’s (Partido de la Revolución Institucional—PRI) long-standing diplomatic tradition, which positioned Mexico as one of the leaders in the non-aligned movement during the Cold War and promoted self-rule through what became known as the Estrada Doctrine.

A recently-retired member of Mexico’s foreign service, who asked not to be identified, stated in an interview for this article that “during the 12 years the PAN was in power, both Vicente Fox and Felipe Calderón led a bilateral diplomatic agenda which brought the country closer to the U.S. but farther away from its own independence and from the rest of the world. Both presidents directly intervened in the SRE [Mexico’s foreign affairs ministry]; they did not allow us to operate in what we considered to be Mexico’s best diplomatic interest.”

Barack Obama’s recent visit to Mexico is the first hint that with the PRI back in power, President Enrique Peña Nieto’s government will not shun its important relationship with the United States. But it does intend to diversify Mexico’s international agenda and change the rules by which the country will play in the global arena. Washington can expect more resistance on a number of bilateral issues than during the Fox and Calderón years—including the ability of U.S. police forces and drone planes to operate within Mexican borders.  

Slowly but surely, from a diplomatic standpoint, Mexico is taking steps to reestablish itself as an outspoken, independent and active player, and is engaging emerging and established world powers beyond its neighbor to the North.  In April, Peña Nieto’s participation in the conference of the Boao Forum For Asia—a China-based forum similar to the World Economic Forum—and Chinese President Xi Jinping’s visit to Mexico this week are a clear example of Mexico’s global pivot. President Xi’s visit, foreshadows a stronger bilateral commercial and diplomatic relationship.

Fox and Calderón did very little to maintain the strategic alliance that the PRI had built with China, and Calderón angered the Chinese government in 2011 when he received the Dalai Lama at the presidential residence.

But now, officials from the federal government and representatives from the private sector involved in President Xi’s visit are predicting the launch of a strategic, integral and functional alliance between China and Mexico. They are not exaggerating: as agreements reached during the visit show, this is much more than Xi making a courtesy call.

Amapola Grijalva, vice president of the Mexico-China Chamber of Commerce, told journalist Darío Celis in a June 3 radio interview that “agreements reached between the two delegations will help narrow the commercial balance gap between the countries, will open up a huge market for Mexican exporters, and will allow China to provide financing for important heavy infrastructure projects in the near future.” Grijalva estimates that “during Peña’s administration, up to $81 billion coming from China could go into financing new industrial naval port complexes, airports, telecom projects, and railway transportation systems.” 

A joint declaration signed and issued by Peña Nieto and Xi on June 4 summarizes the amount of work already invested in the renewed Mexico-China relationship. The two leaders signed memorandums of understanding to formally establish cooperation in energy, mining, emerging industries, infrastructure, private sector collaboration, university alliances, trade, banking, and even the oil industry. In addition, it was announced that sanitary measures have been met to reopen the Chinese market to pork from Mexico, and an agreement was reached to allow all forms of tequila into China.

Additionally, to promote tourism in both countries, Peña Nieto and Xi expressed their mutual interest in expanding international flights connecting Mexico and China and in establishing a working relationship between their tourism ministries.

In the political arena, Peña Nieto took the opportunity to amend Calderón’s diplomatic gaffe by ratifying the “One China” principle. Peña Nieto stated that it is Mexico’s position that both Taiwan and the Tibet are part of Chinese territory and Tibetan affairs are an internal issue for China.

In the statement, both parties declared that “given the improvement of diverse mechanisms in the bilateral cooperation, the conditions are such that Mexico-China relations can be elevated to a new level of benefit to both nations.” They also established a calendar of working visits from high-level government officials to implement the agreements and scheduled future meetings during upcoming international forums including the UN, APEC and the G20.

As President Xi’s visit shows, the coming years are certain to bring Mexico and China diplomatically closer and to catalyze economic growth, trade and development in a mutually beneficial way—while breaking Mexico’s trade dependency on the U.S. market.

Mexican economy bouces back

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Here is a link to my latest article on AQBlog, titled “Mexican economy bounces back” http://americasquarterly.org/node/2275 and published on March 1st, 2011. Please feel free to visit and comment.

Here is a copy of it:

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Amidst growing national concern and international coverage of the violence in Mexico, a bit of news on the macroeconomic scale talks wonders of our country’s capabilities to overcome even the biggest obstacles.

Last week, Bloomberg ran a story on Mexico being the second economy in Latin America to bounce back from the 2009 recession with the highest pace of growth in the last decade. Our economy expanded by 5.5 percent in 2010.

Granted, it is not China’s double digit performance. But for a country that is largely dependent on an economic relationship with the our neighbor to the north—80.5 percent of our trade is with the United States—and is still facing important trade challenges, the GDP expansion at a 0.2 percent rate larger than expected for the fourth quarter of 2010 is excellent news. In a way, it is also good news for the United States. It shows that consumer spending is recovering in spite of the housing situation and the still present issue of unemployment (9 percent in January).

There are obvious advantages of being one of the United States’ most important trading partners. But it doesn’t take a genius to also see that dependence of over 80 percent of our trade with this partner also puts Mexico at a vulnerable state. This is even more worrying when we’re competing for this trade position with economies such as China.  Since the early 1990s, Mexico has been constantly promoting an open policy on trade. We currently hold 11 trade agreements with 41 countries. But we still need to act on them and actually reap the benefits of spreading our risk by diversifying commercial relations.

Mexico also needs to urgently focus on investing in and then maximizing the returns on innovation. We need to understand that wealth today is based on knowledge and ownership of that knowledge (patents). If we are able to tap into this, then our future will look even more promising than what we were able to do in 2010. I may be overoptimistic but continuing on this track would provide the first steps toward bridging the gap between our poorest and richest. This could go a long way toward reducing the crime that is partly a result of this present divide.

*Arjan Shahani is a contributing blogger to AQ Online. He lives in Monterrey, Mexico, and is an MBA graduate from Thunderbird University and Tecnológico de Monterrey and a member of the International Advisory Board of Global Majority—an international non-profit organization dedicated to the promotion of non-violent conflict resolution.