Exploring Prospects for Global Economic Recovery: Remarks by Leo Martínez-Díaz and José Antonio Meade

During his presentation, U.S. Treasury Department’s Deputy Assistant Secretary for the Western Hemisphere Leo Martínez-Díaz gave an overview at U.S.-Mexican economic ties since the implementation of the North-American Free Trade Agreement (NAFTA), as well as what the future holds for relations. Martínez-Díaz said that, since 1994, the value of bilateral trade has increased by 350 percent, U.S. investment in Mexico has increased 430 percent, and Mexican direct investment in the United States has increased by 500 percent. While the share of Mexico’s exports to the United States peaked in 2000, it’s fallen to 79 percent, demonstrating Mexico’s diversified global trade ties. At the same time, he noted that Mexico is gaining a competitive edge in the field of labor, as China’s labor wages are on the rise. With the relationship evolving, when U.S. and Mexican officials meet now they discuss global issues rather than just bilateral ties, he said.

“In many ways, Mexico has led by example,” he said, noting its leadership in openness to free trade, fiscal stability, and pioneering in the area of conditional cash transfers. Looking ahead, he forecast resilience for both economies and increased Mexican direct investment in the United States. In that context, he predicted rising cross-border links in the fields of science and innovation. He closed by noting that elections coming up this year in both countries will allow for an opportunity to reaffirm the bilateral partnership.

In closing remarks, Mexican Secretary of Finance and Public Credit José Antonio Meade pointed out that Mexico is the first Latin American country to host the G20. He stressed that, with Mexico as the chair, this year’s summit will focus on experiences of both G20 members and non-members in assessing the issue of financial regulation. But, he added, in the case of many countries—Mexico included—it is as relevant to discuss how to build financial inclusion as it is to focus on financial regulation. To that end, it is crucial for the G20 to define the best practices for advancing and promoting financial inclusion, he said. He also noted that this year’s G20 will make use of studies on disaster-risk mitigation, green growth, and the potential impact of financial regulation on emerging markets.

The secretary gave his perspective on the G20 finance ministers' meeting held February 25 and 26 in Mexico City, noting that attendees generally see the global economy as being in a state of recovery. The ministerial summit reaffirmed support to help stabilize EU economies, with the IMF as the chief institution to handle the crisis but with potential availability of additional funds.

WATCH DEPUTY ASSISTANT SECRETARY MARTÍNEZ-DÍAZ’S REMARKS

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WATCH SECRETARY MEADE’S REMARKS

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