US embassy cable - 04QUITO3102

UNCLAS QUITO 003102 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV, PREL, EC, Trade 
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