February 27, 2003
Mexico City, Mexico

Prime Minister Jean Chrétien today announced that Canada and Mexico had reached nine new agreements, which will enhance co-operation on trade, communications and efforts to combat money laundering and organized crime. The Prime Minister witnessed the signing of these agreements with Mexican President Vicente Fox in Mexico City.

"These new agreements are indicative of the diverse and modern partnership that Canada and Mexico currently share," said Prime Minister Chrétien. "They lay the ground for enhanced cooperation in areas ranging from education, telecommunications and governance to hemispheric and foreign affairs."

Additional information on the agreements is attached.

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PMO Press Office: (613) 957-5555

Background

Transport Canada and the Mexican Ministry of Communications and Transportation signed a letter of intent to facilitate scientific and technical cooperation, including exchanges of information and the sharing of expertise in intermodal transportation systems.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the Directorate General for Investigation of Transactions of the Mexican Finance Ministry have signed a memorandum of understanding to work together in exchanging financial intelligence in support of the fight against money laundering and organized crime. The MOU will serve as a basis for both exchanging best practices as well as information to assist both countries in working together to battle these global problems.

Industry Canada and the Mexican Ministry of Communications and Transport signed a letter of intent to conclude an agreement in the near future between the two governments and the two satellite operators, Canada’s Telesat and Mexico’s Satmex. The agreement will facilitate the coordination of existing and future Canadian and Mexican satellite networks.

Letter of Intent on the Development of Ties on Public Service Administration Best Practices, E-Learning and E-Campus Americas Projects

The Canadian Centre for Management Development (CCMD) and the Mexican Ministry of Comptrollership and Administrative Development (SECODAM) signed a letter of intent to exchange public service administration best practices. This will include a e-Learning and the E-Campus Americas pilot project to improve public service efficiency, strengthen governance and increase connectivity in the hemisphere.

Export Development Canada (EDC) and Petroleros Mexicanos (PEMEX) signed a letter of offer for a US$ 200 million loan. The funds will be used by PEMEX Exploration & Production to purchase Canadian goods and services for its investments in the Strategic Gas Programme and 23 other Pidiregas projects, which aim to increase Mexico’s oil and natural gas production capacity.

EDC and CFE, the government-owned power utility and Mexico’s second largest company, signed a US $36 million loan agreement to support the purchase of gas turbine and generator equipment and related services from Siemen’s Westinghouse Inc. for the El Encino and El Sauz 11 Power plants. This new financing is in addition to other existing arrangements between EDC and CFE, including an ongoing US$ 50 million line of credit which facilitates the sale of Canadian goods and services to CFE.

EDC and Banco Mercantil del Norte, S.A. (BANORTE), now Mexico's fourth largest private bank and the only major bank without foreign ownership, signed a new US$ 20 million memorandum of understanding (MOU) which will facilitate Canadian capital equipment and services exports to the Mexican market. The MOU will benefit small and medium-sized exporters selling into the Mexican market while using the BANORTE network.

EDC and Banco Nacional de Comercio Exterior (Bancomext) signed a US$ 75 million MOU to facilitate the export of Canadian capital equipment and services into the Mexican market. Today’s MOU builds on a longstanding relationship between EDC and Bancomext, which was established in 1937. It is owned by the Mexican government and functions largely as an export-import bank.

EDC and Femsa Empaques, a key subsidiary of Grupo Femsa, signed a MOU to conclude a US$ 20 million credit agreement which will facilitate the sale of Canadian capital goods and services to Femsa Empaques’ operations. EDC is currently coordinating a visit to Canada by procurement officials of Grupo Femsa, which is Latin America’s largest beverage group and one of Mexico’s largest industrial groups.