New export opportunities: trading with Mexico.

• Author: Smith, Cheryl
• Position: The federal fast-track trade procedure and how it affects Utah's international trade

NEW EXPORT OPPORTUNITIES

Last year Utah companies exported more than $30 million in goods to Mexico, directly employing more than 12,000 people in the process. Of Utah's total exports to the world, Mexico's share is just less than 3 percent. Mexico in 1989 ranked 12th among Utah's 123 export markets, and third among all U.S. markets. By the year 2000, Mexico will be a market of 100 million people.

Emerging Markets for Utah Exporters

Ongoing trade negotiations with Mexico's President Salinas will significantly open up new markets for Utah exporters. Presently, companies such as Kennecott, Jetway Systems, Novell, and mining-equipment manufacturers are selling products to Mexico. Utah's leading exports to Mexico are scientific measuring equipment, paper, rubber, plastics, computers, industrial machinery, and food products.

Congress voted on May 23 to approve H.Res. 146, thereby extending the fast-track procedure regarding trade relations with Canada, Mexico, and more than 100 other nations. Fast track grants flexible authority to the president to negotiate international trade agreements without intervention from Congress. The U.S. and Canada negotiated similar fast-track procedures two years ago, resulting in the elimination of most duties.

"That policy expired June 1 of this year, and Congress has extended the two-year authority to 1993, allowing the White House and Latin America," said Dennis Tenney, foreign trade executive with the International Trade Division of the Utah Department of Economic Development. "If either House had voted no, fast track would have been discontinued.

"Utah companies have a tremendous opportunity that did not exist as recently as three or four years ago for exporting Utah products to Mexico," Tenney reported.

A Boost to GATT Talks

The U.S. Mexico, and several other countries are members of the General Agreement on Tariffs and Trade (GATT), having agreed to reduce their tariffs and open their borders in a uniform fashion to facilitate trade. With fast track renewed, Bush now has congressional approval to continue negotiations in Geneva aimed at strenghthening GATT talks and negotiating a free-trade agreement with Mexico.

The Bush Administration has the goal of creating a North American Free-Trade Area joining Mexico, Canada, and the U.S. Successful free-trade talks could create a cohesive market with a combined GNP of $6 trillion. Supporters of fast track maintain that an eventual free-trade agreement with our southern neighbor would be the end result, creating jobs and...