US embassy cable - 05SANTIAGO2469

C O N F I D E N T I A L SANTIAGO 002469 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 12/06/2015 
TAGS: PREL, PGOV, CI, ME 
SUBJECT: CHILE AND MEXICO TO SIGN STRATEGIC PARTNERSHIP 
AGREEMENT DURING PRESIDENT FOX'S VISIT TO CHILE IN JANUARY 
2006 
 
REF: SANTIAGO 02354 (NOTAL) 
 
Classified By: Deputy Chief of Mission Emi L. Yamauchi. 
Reasons: 1.4 (b and d). 
 
1. (C) Foreign Ministry North American Affairs Deputy 
Director Alex Geiger told poloff December 5 that Chile and 
Mexico would sign "a strategic partnership agreement" during 
Mexican President Fox's visit to Chile in January 2006. 
Geiger noted the GOC and GOM made significant progress 
towards an agreement during President Lagos' visit to Mexico 
in early December.  Geiger, who has taken part in the 
negotiations, characterized the accord as an "umbrella 
agreement" that would allow Chile and Mexico to build upon a 
free trade agreement signed in 1998.  The final agreement 
will contain at least five components: political, trade, 
commercial, science and technology, and culture.  Geiger 
added Chile was especially proud of both countries' 
commitment to identify opportunities in the region "to 
jointly promote democracy, free trade and other common 
interests." 
 
2. (C) Geiger characterized the agreement as "one of a kind," 
asserting Chile (and he believed Mexico) did not have a 
similar agreement with any other country in the region.  He 
claimed discussions toward the agreement had been under way 
for "some time" and predated last spring's "difficulties" 
over the OAS Secretary General candidacy (where then Chilean 
Minister of Interior Insulza and Mexican FM Derbez were vying 
for the position.)  Geiger said that while both countries' 
desire to "add a political dimension" to the FTA played a 
role, Mexico's standing in the region and the GOC's desire 
for improved relations with the GOM were the driving factors 
for Chile to conclude an agreement before President Lagos 
leaves office in March 2006. 
 
3. (U) Geiger's description of the agreement is consistent 
with the information contained in a December 2 press release 
posted on the Mexican presidency's website 
(www.presidencia.gob.mx).  According to the release, the 
agreement calls for Chile and Mexico: 
 
--To coordinate positions in multilateral organizations and 
international fora, as well as in their relations with other 
nations and regions. 
 
--To strengthen the Chile-Mexico free trade agreement, 
including increasing investment in the two countries. 
 
--To increase emphasis on research, culture, science and 
technology. 
 
--To develop strategies to preserve natural resources in both 
countries. 
 
4. (U) The press release adds that Chile and Mexico will 
establish a Partnership Council to implement the agreement. 
It will be comprised of six government representatives who 
will participate in three executive bodies: a political 
affairs commission, a cooperation commission, and a free 
trade commission.  The Council also will act as a mechanism 
for technical cooperation as a platform for joint 
collaboration with other countries. 
 
5. (U) According to the same press release, Chilean 
investment in Mexico totaled $130.3 million as of June 2005, 
and involved 259 Chilean firms operating in the commercial, 
service and manufacturing sectors.  Mexican investment in 
Chile as of October totaled $1.31 billion and involved 50 
Mexican firms in the food, steel, public works, publishing 
and telecommunications sectors. 
KELLY