FOX'S ELECTION OPENS A WINDOW OF OPPORTUNITY WITH MEXICO

A new Zeitgeist is in the making. In Mexico, Vicente Fox has won an
historic victory after 71 years of single-party rule and in January, a new
U.S. president will take office. There should be no shortage of goodwill
between these two new governments and both leaders will want to bring fresh
thinking to the table.

The real question is, how will Fox and the new U.S. president choose to
spend their political capital? Our efforts should focus on realistic
proposals in the areas of trade, immigration, drug trafficking and foreign
policy.

Free markets tend to lead to free politics, and many supporters of the
North American Free Trade Agreement made the claim during the heated 1993
debate that the agreement would help promote political reform in Mexico.
Given the progress that culminated in the election of Vicente Fox, it's now
clear that promoting political reform was one of the most cogent arguments
for the trade deal.

Trade again offers a good starting point for achievable progress between
our two countries. While long-term goals to expand NAFTA throughout the
Western Hemisphere or increase the depth of NAFTA to cover social issues
not currently governed by the agreement deserve a place on the trade
agenda, the focus should be on targeted trade advances. U.S. anti-dumping
rules, agricultural quotas and trucking restrictions might be liberalized
in exchange for Mexican support to bring Chile into NAFTA and a liberalized
telecommunications competition policy.

President-elect Fox has talked of the day when the U.S.-Mexico border
operates in the fashion of our border with Canada. This is an excellent
goal, but it will clearly require significant advances in Mexico,
especially economically and in the war on drug trafficking. Nevertheless,
we can move forward now to deploy innovative customs facilitation,
including in-country placement of customs facilities and the selective use
of "virtual" customs procedures used by the auto industry across the
U.S.-Canadian border.

Fox's success as Mexico's marketer-in-chief will be key to parlaying
increased Mexican market liberalization into a doubling of U.S. direct
investment during his six-year term. This, we believe, is the best solution
to Mexico making the developmental and social advances needed to reach the
goal of "open borders."

We must find ways to level the social inequalities that exist between
Mexico and the United States by harnessing the energy of the private
sector, without going down the blind alley of government-heavy foreign aid
programs.

Attractive alternatives do exist. The mandate of the North American
Development Bank (Nadbank), for example, could be expanded beyond the
border areas. The Nadbank has successfully parlayed modest government
support into private sector financing for border infrastructure projects. A
truly North American Nadbank could seek participation from Canada and
leverage private funding to viable infrastructure projects in
underdeveloped Mexican areas like Chiapas and Guerrero.

We believe that the moment has never been better for our two countries to
arrive at a comprehensive agreement on immigration. The roaring U.S.
economy has increased the demand for Mexican labor and lessened the
resistance of U.S. labor unions to immigration. More immediately, a new
U.S. president may be willing to appeal to Congress for a substantial
increase in the number of temporary visas for unskilled workers should
Mexico commit to vigorous enforcement against the illegal trafficking of
immigrants along its border.

On the spiny matter of drug trafficking, Fox suggests replacing the
congressionally mandated certification process with a multilateral
mechanism. This shouldn't be seen as a handout to Mexico. The fact is, the
U.S. bilateral drug certification process is a clear irritant to bilateral
relations with many international friends besides Mexico. Although
repealing the politically appealing drug certification process will not be
an easy sell on Capitol Hill, it is a challenge worth accepting.

We propose trading away the popular but ineffective drug certification
process for real progress on the ground fighting drug trafficking through
Mexico. Leaders on Capitol Hill and in U.S. law enforcement agencies have
been deeply frustrated with Mexico's use of the national sovereignty
argument in order to avoid more intimate bilateral anti-drug efforts. Fox
should be willing to offer to expand bilateral anti-drug cooperation beyond
its currently stilted framework. Greater independence for Mexico's courts
and a real crackdown on corrupt law enforcement are important steps.

Regarding foreign policy, let us seek a natural convergence focused on the
promotion of democratic values. Fox already has indicated a willingness to
reconsider the Estrada Doctrine, which limited Mexico from opining about
the domestic politics of other nations out of an excessively squeamish
definition of national sovereignty. He has expressed concern for democracy
in Cuba and Peru, both of deep interest to the United States. Mexico offers
a voice of moral authority in the hemisphere and the United States should,
in exchange, intensify its support for a more visible Mexican leadership
role in multilateral entities.

Finally, when it comes to bilateral relations, let us put aside the
adversarial nationalism and arrogant paternalism of the past. The United
States will be hoping to see a cast of friendly bridge-builders. And Fox
should look closely to see whether the new U.S. president makes
appointments that suggest a commitment to placing Mexico at the top of the
U.S. foreign policy agenda, where it deserves to be.

Dreier , of Covina, is chairman of the House Rules Committee. Baer is a
senior fellow and chair of the Mexico Project for the Center for Strategic
and International Studies.