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In strong Support of Mexico Joining the Trans-Pacific Partnership (TPP)


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In the run-up to the upcoming G-20 heads of government meeting in Los Cabos, Mexico on June 18 -19, U.S. Senate Foreign Relations Committee Ranking Member Dick Lugar (R-Ind.) released the following statement in strong support of Mexico joining the Trans-Pacific Partnership (TPP):

Mexico has expressed its keen interest in joining the Trans-Pacific Partnership (TPP), and the Obama Administration (U.S.) should promptly endorse its intention to join TPP negotiations. With over $1 billion of trade per day, Mexico is the U.S.'s third largest trading partner in the world. For the U.S., Mexico represents a reliable ally and strategic global partner. Mexico's participation in TPP negotiations would benefit both U.S. producers and consumers. With a large and expanding market, Mexico is the second largest destination for U.S. exports. Mexico buys more U.S. products and services than all of the BRIC (Brazil, Russia, India, and China) nations combined. It even buys more U.S. exports than the United Kingdom, Germany, France and the Netherlands together, more than China and Japan together, and more than all of Latin America and the Caribbean combined.

Our trade with Mexico produces jobs in the U.S. The U.S. Chamber of Commerce has estimated that trade with Mexico directly supports almost six million American jobs. Mexico is a major partner in our production and supply chains, which are tightly integrated. For each dollar of products that the U.S. buys from Mexico, there are 40 cents of U.S. inputs. Additionally, there is a 37 percent value added in Mexico's global exports, and for every dollar that Mexico earns from exports, 50 cents are spent on U.S. goods. An increase of Mexican exports through TPP would represent an increase of U.S. exports -- a boon for job creation in the U.S.

Mexico's participation in TPP would benefit U.S. business. The U.S. is the main source of foreign direct investment (FDI) to Mexico, and an expanded market in the Asia-Pacific region would usher in new opportunities and higher returns for U.S. corporations operating in Mexico. Mexico's vast network of free trade agreements already includes free trade agreements with three TPP participants (the United States, Chile, and Peru) and with two other candidates (Canada and Japan). By working together through the TPP, the competitiveness of North America would be significantly enhanced, and exports to Asia of regionally produced goods would boost the prosperity of our nation and strengthen U.S. influence in the Americas into the future.

Through the North American Free Trade Agreement (NAFTA), the U.S. and Mexican economies have become deeply connected. As a member of this treaty, Mexico has demonstrated a commitment to maintaining an open economy to promote growth and prosperity. Welcoming Mexico into TPP negotiations would provide an expedient and effective avenue to upgrade NAFTA. Taking the necessary steps to move towards an enhanced NAFTA promotes job creation in the U.S. and enhances commercial and economic competitiveness for North America as a whole.

Including Mexico in TPP is good diplomacy and good business. It would bring the largest Latin American economy in the Pacific region, and our close strategic partner, together with like-minded nations in the construction of a modern, free and fair, rules-based trade regime.

Mexico is our neighbor, but it is also an open society with which we share history, culture, and the values of freedom and democracy. Mexico's participation in TPP would further strengthen our existing bonds, as well as the economies of the U.S. and its TPP partners. It is in the U.S. interest that Mexico join the TPP.

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