Clinton Urges Mexicans to Help on Trade, Drugs

MEXICO CITY — A beaming President Clinton told Mexicans on Wednesday that “our economic integration is inevitable” and urged them to help him fight common scourges such as drugs and defend the North American Free Trade Agreement.

In the most extensive speech of his three-day state visit, Clinton stressed the heightened importance of the partnership with Mexico--the United States’ No. 3 trading partner but also its No. 1 provider of illegal immigrants and primary transit point for cocaine. And, apparently seeking to heal recent tensions, he went out of his way to emphasize U.S. respect for Mexico, which is highly sensitive to slights from its powerful neighbor.

The speech was the main event on a day when Clinton also reveled in a visit to some of Mexico’s tourist wonders. He was greeted by showers of confetti in the colonial town of Tlaxcala and toured pyramids built by a lost civilization at Teotihuacan outside the capital.

Clinton’s first official visit here has largely been overshadowed by the contentious issues of drug trafficking and a U.S. crackdown on illegal immigration. But on Wednesday, he and Mexican President Ernesto Zedillo focused on NAFTA, the 3-year-old trade pact among the United States, Mexico and Canada, urging that it be enlarged to include other democracies in the hemisphere.

Before NAFTA, “many people in both our countries painted a dark picture of lost jobs and boarded-up factories,” Clinton told thousands of business executives, officials, intellectuals and others at a ceremony in the capital’s giant National Auditorium. “They were wrong. NAFTA is working for America, and it is working for Mexico.”

The president’s defense of the pact comes as he is seeking greater authority from Congress to negotiate trade accords--part of a drive to bring Chile and other countries into NAFTA.

Clinton also faces a potentially harsh congressional debate this summer when he is due to report on how NAFTA has affected U.S. jobs.

Clinton added that the measure of “the success of our economic partnership [is] in its human impact.” He cited improvements in the environment, more secure jobs on both sides of the border and specific benefits such as better health care for Mexican women because lower tariffs have made U.S.-made equipment for mammograms and other tests more available.

Since NAFTA took effect, trade between the neighbors has jumped nearly 60%, continuing a trend of rapidly growing economic integration that began in the mid-1980s. The economic partnership has been particularly obvious in Southern California.

But vocal critics in both countries have called for changes in NAFTA. While the U.S. government denies claims that the accord has cost hundreds of thousands of American jobs, NAFTA clearly hasn’t fulfilled the rosy projections made by advocates. In fact, many analysts say the impact on jobs so far has been slight.

Senior members of Clinton’s Cabinet who accompanied him to Mexico acknowledged Wednesday that it would not be easy to expand NAFTA.

Getting “fast-track” authority from Congress to negotiate a bigger trade pact “will be a difficult fight,” said Commerce Secretary Bill Daley at a breakfast with business executives.

Clinton returned Wednesday to a theme that has delighted Mexicans--stating that U.S. demand for illegal drugs is a major reason behind the growing narcotics business in Mexico. He called for further cooperation against drug gangs, echoing an agreement he signed with Zedillo on Tuesday.

“My friends, the battle against drugs must unite our people, not divide them,” Clinton said to warm applause.

Mexico is still stinging from a recent U.S. congressional attempt to punish this country for its inability to stem drug trafficking.

Throughout his visit, the U.S. president has poured compliments on Mexico, paying homage to its independence heroes, artists and ancient civilization in an effort to bolster relations.

Zedillo warmly returned the U.S. praise, stating Wednesday that “no one has worked with more determination to press for respect, dialogue and cooperation than Mr. President William Clinton.”

Clinton arrived in San Jose, Costa Rica, late Wednesday after leaving Mexico. He is scheduled to hold a summit today with Central American leaders. He plans to finish his weeklong trip in Barbados, where he will meet with Caribbean leaders.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Trade With Mexico

U.S. exports to Mexico have soared since NAFTA was signed three years ago.

In billions of dollars

NAFTA

Peso devalutation

* Estimate

Source: International Monetary Fund.

Compiled by JANET LUNDBLAD / Los Angeles Times