U.S. Tells Mexico War Won’t Impede Talks on Trade Pact

U.S. officials are taking pains to assure their Mexican counterparts that negotiations for a free-trade agreement between the two countries will proceed despite the Persian Gulf War.

U.S. Embassy officials have been quick to point out President Bush’s brief mention of the impending negotiations in his State of the Union address Tuesday.

In addition, Ann Hughes, the Commerce Department’s deputy assistant secretary for the Western Hemisphere, visited Mexico this week to meet with business people and government officials in preparation for the talks.

Negotiating an agreement with Mexico remains a priority for the Bush Administration, she said during an interview. The hope is that the Mexico agreement will provide a model for reaching similar deals with other Latin American countries, she added.

While the preoccupation of heads of state with the Gulf may prove a major impediment to solving the sensitive issues that have stalled worldwide trade negotiations, that should not be a problem in the U.S.-Mexico talks, she said.

“The heads of state will have to make the decision on whether to include Canada,” she said. “That decision probably will be made very soon. “

In fact, some Mexican analysts suggest that the Gulf War could strengthen Mexico’s hand in the talks.

The war calls U.S. attention to the need for a reliable source of oil, said Jonathan Heath, general manager of Macro Asesoria Economica, a Mexico City economic research firm.

That will make signing a free-trade agreement with Mexico a higher priority for the United States, he said. It also will increase U.S. willingness to help finance Mexican oil exploration and development.