Mexican President Vicente Fox stressed the need for countries to abide by their international trade agreements Friday, voicing support for Canada in its softwood lumber dispute with the United States.
Fox told a business gathering that the North American Free Trade Agreement subjects trade in the region to "rules that provide guarantees of legal certainty." He later told reporters his stance included the softwood dispute.
"Mexico regrets any unilateral decision that fails to abide by the decisions of the arbitration panels where trade differences are discussed and aired," Fox said in a speech to members of the Vancouver Board of Trade.
Canada has been angered by Washington's refusal to scrap duties on Canadian softwood after a NAFTA panel ruled the United States had failed to justify the need for the tariffs imposed three years ago.
Some Canadian officials have charged the U.S. reaction amounted to a rejection of NAFTA, but the United States has denied that and argues that Canada has misinterpreted the panel's decision.
"Mexico believes that when international commitments are promptly honored, we diminish uncertainty in the region," Fox said. "These institutions and procedures must be strengthened, not weakened."
Canadian Prime Minister Paul Martin, who met with Fox in Vancouver, called the Mexican leader's statements helpful. "I'm sure this will weigh heavily in these battles," Martin said at the leaders' joint press conference.
The Mexican president is on a two-day visit to Western Canada to promote investment opportunities in his country. He visited the oil industry center of Calgary, Alberta, on Thursday.
In his speech, Fox urged for greater co-operation between the three NAFTA countries -- Mexico, Canada and the United States -- amid increased competition with Asian countries.
"We've been losing jobs to Asia, to China, the three of us," he said. But, he said he was optimistic North America has greater potential for growth and trade opportunities.
Fox, whose presidential term ends next year, also touted "unprecedented legal security" for investors in Mexico, and added that over the past five years the country had made "significant" progress to reduce corruption and poverty.
