FOX VISIT PROMOTES TRADE, INVESTMENT, &

UNCLAS QUITO 003102 SIPDIS E.O. 12958: N/A TAGS: PGOV PREL EC SUBJECT: FOX VISIT PROMOTES TRADE, INVESTMENT, & COOPERATION WITH ECUADOR REF: QUITO 2399 ¶1. Summary: In a brief visit to Quito on November 22-23, Mexican President Vicente Fox sought increased bilateral investment and trade. Presidents Fox and Gutierrez discussed issues of bilateral interest, including commitments to facilitate visa issuance, negotiate an extradition treaty, improve justice administration, offer Mexican technical training for energy, oil, and tourism, seek Ecuador's inclusion in the G-3 and swap support for candidates to multilateral organizations. Mexico's Oil Institute made a commitment to help Ecuador form a similar institution, and Ecuador pledged to support observer status for Mexico in the Community of Andean Nations. End Summary. FOCUS ON TRADE AND INVESTMENT -------------- ¶2. According to Mexican Ambassador Alma Patricia Soria, President Fox's primary goal was to promote investment and trade between both nations. Ambassador Soria described great potential in joint ventures between Mexican and Ecuadorian enterprises in the textile, footwear, leather, flowers and livestock sectors. Bilateral trade between the two countries totaled $185 million with a negative balance for Ecuador in ¶2003. On the investment front, Mexican investments in Ecuador total $800 million, in areas such as telecommunications, industrial products, highway administration, and over 100 small industry investments. ENERGY AND OTHER COOPERATION -------------- ¶3. President Gutierrez confirmed publicly that a memorandum of understanding and cooperation on energy was signed during the visit. The Mexican Institute of Oil will support the creation of a similar agency in Ecuador. Mexico and Ecuador agreed to coordinate strategies for the international marketing of hydrocarbons and their derivatives, in addition to designing mechanisms to formulate and negotiate work and services contracts in the oil industry. ¶4. Other issues discussed include technical cooperation for the implementation of 14 projects presented by Ecuador to Mexico, and technical training on energy, oil, and tourism. President Fox also announced 25 fellowships to Ecuadorian students to continue their university and graduate studies in computer engineering and tourism. RECIPROCAL SUPPORT IN INTERNATIONAL FORA -------------- ¶5. Mexico reportedly sought and obtained GoE support to become an observer in the Community of Andean Nations (CAN). President of Congress Guillermo Landazuri expressed support for Mexican observer status in the CAN at a Congressional event honoring Fox. Fox's visit also included an invitation for Ecuador to enter the G-3 Free Trade Agreement (Mexico-Colombia-Venezuela Group) to which Panama was recently added. The G-3 is a trade and cooperation agreement which seeks to abolish trade barriers. The GoE also sought support for Ecuadorian candidates for various multilateral fora. MFA PUSHES EXTRADITION AND MIGRATION ISSUES -------------- ¶6. The Ecuadorian MFA's bilateral affairs undersecretary, Roberto Bentancourt, told the press that Ecuador had proposed an extradition treaty to fight against organized crime and corruption. Mexico agreed to coordinate efforts on this matter. According to other MFA officials, President Fox agreed to the GoE's request to streamline visa procedures for Ecuadorians wanting to travel or reside in Mexico. COMMENT -------------- ¶7. Fox's pro-FTA commentary during the visit may help reduce Ecuadorian skepticism about free trade. His public discourse provided a welcome counter balance to that of recent high-profile visitors, such as Brazilian President Lula da Silva (reftel). KENNEY