Fox to Visit Washington With Cross-Border Economic Plan

MEXICO CITY —  President-elect Vicente Fox announced Thursday that he is bringing an ambitious plan to Washington aimed at strengthening ties--including a proposed fund through which the United States would help assist Mexico’s development.

Fox, who ousted the world’s longest-ruling party in July 2 elections, emphasized that his trip to Canada and the United States next week is aimed at sharing ideas rather than reaching accords. But he made clear that he is working on a bold plan under which the economies of the three North American countries would eventually converge, much like those of nations in the European Union.

“The problem of governments is we only see the length of our terms--the four years of the U.S. government, six years for [the president of] Mexico,” Fox told a news conference. “I’d like to demolish this myopia.”

Mexico has pursued a far closer relationship with the U.S. in recent years, as the neighbors’ economies have become more intertwined. But the two countries frequently have quarreled over issues such as illegal migration of Mexicans and lack of cooperation in the fight against the drug traffickers, who have increasingly used Mexico as a platform for sending cocaine and heroin north.

Fox, who takes office Dec. 1, said he won’t present detailed plans to American officials until the new U.S. president is chosen in November. But he mentioned several elements of a project he plans to discuss during his Aug. 22-25 trip to the U.S. and Canada, including:

* An accord under which Mexico would bring its economic variables--such as inflation, interest rates and fiscal deficit--in line with those of its wealthier northern neighbors over a five- or 10-year period.

* A development fund through which the U.S. and Canada would support projects to help Mexico modernize.

* An agreement that would gradually allow increased legal migration from Mexico to the U.S. This could be done through contracts allowing entry of more workers for labor-scarce areas, Fox said, or could lead to an expanded zone on both sides of the border in which workers could move freely.

U.S. officials have expressed mixed feelings so far about Fox’s ambitions. While some say they welcome new ideas, many feel that the free movement of workers is impractical while there is such a chasm between U.S. and Mexican wage levels.

And it is not clear whether the U.S. Congress would be enthusiastic about increasing such immigration or funding development in Mexico.

But Fox dismissed suggestions that his ideas are utopian. He pointed to the example of the European Union, which provided billions of dollars in aid to less-developed countries, such as Portugal and Greece, as they prepared to join the trading bloc.

Fox, a former Coca-Cola executive and member of the pro-business National Action Party, emphasized that the U.S. would benefit from helping Mexico become more prosperous. Illegal migration would decline, the U.S. border economy would thrive, and American companies would have a bigger market, he said.

“If we can have solidarity, support, development funds, we can do this much faster,” Fox said.

He suggested that one way to boost such investment in Mexico would be to expand the North American Development Bank, an institution created under the North American Free Trade Agreement to build infrastructure on the border.

But the president-elect’s ideas suggested something far more ambitious. The existing bank has only $305 million in capital, provided in equal shares by the U.S. and Mexico. It is focused on health and environmental projects along the border, such as waste-treatment plants.

“Instead of spending billion-dollar sums on building walls and sending police and the army [to the border], it’s easier and more intelligent to invest in generating jobs here, so [workers] don’t have to leave,” Fox said.

Addressing another source of friction, the president-elect said he would urge the U.S. government to abandon its annual process of certifying countries as cooperating in the fight against illegal narcotics.

Fox said he hoped a multilateral process would replace the current system, which has been widely criticized by Latin American governments as an interference in their internal affairs.

Fox will travel to Canada on Tuesday to meet with government and business leaders. He heads to New York on Wednesday for meetings with Mexican migrants and business executives. He is scheduled to see President Clinton and Vice President Al Gore, the Democratic presidential nominee, in Washington on Thursday.

He ends his U.S. trip next Friday with a stop in Dallas, where he plans to meet with Gov. George W. Bush, the Republican presidential nominee, and with Mexican residents.