Mexico sees U.S. economic slowdown hurting bilateral trade with Japan+

TOKYO, April 23 Kyodo - Visiting Mexican Undersecretary for Foreign Trade Beatriz Leycegui expressed concern Thursday that the U.S. economic slowdown amid the global recession may have an aspect of hurting bilateral trade relations between Japan and Mexico.

Leycegui, who was in Japan to join the review conference of the two countries'
free trade agreement was put into force in 2005, said the current difficult
conditions can be addressed through more efforts for global trade
liberalization, not by leaning toward protectionism.
With the FTA, trade and investments between Japan and Mexico have increased,
Leycegui said in an interview with Kyodo News. But she also said the countries,
which are closely linked to the United States in terms of foreign trade, are
also linked to what happens to the U.S. economy.
Leycegui said nearly 90 percent of Mexican imports from Japan are related with
the components of such products as flat-panel televisions and cars that are in
turn exported to the United States.
Over 80 percent of Mexican exports go to the United States, she said, adding,
''If that consumption market has been affected (by the crisis), that has also
an impact on the Japan-Mexico relationship.''
Over the last two months the value of Japan-Mexico trade dropped by 35 percent
and ''through more trade, not less trade, we will be able to overcome this
challenge,'' she said.
On the spreading fear of protectionism in global trade, Leycegui called for
''discipline'' by the World Trade Organization in order to address the new
challenging issue the global economy has faced.
Strengthening the function of the WTO would help effectively monitor any
protectionist measures counties take, she said.
==Kyodo