A NEW KIND OF NEIGHBOR

The elections of July 2 brought the end of 71 years of virtual one-party rule and inaugurated my country's first experience in a democratic rotation of power. Mexico's electoral institutions, built over several rounds of gradual reform, proved their maturity and reliability.

The smoothness of our transition, the civility shown by all the political actors and the statesmanship demonstrated by president Ernesto Zedillo are all reflections of our enormous transformation.

That transformation frames the message I have brought this week to President Clinton and the candidates George W. Bush and Al Gore. The full advent of democracy will complement our economic reforms, bring them to full fruition and better distribute their benefits. The fight against corruption, accountability of public officials, the rule of law and security for all citizens will provide the assurances that Mexico's partners are expecting. These are the issues Mexicans strongly raised during the presidential campaign, and they are also at the root of some doubts our friends abroad -- investors, creditors, tourists -- have harbored. My first priority after taking office will be to confront these challenges forthrightly.

I will also attempt to redress the age-old poverty and inequality that, despite economic gains in several regions, still plague too many Mexicans. We must accelerate economic growth, promote local and regional development and above all ensure better distribution of income. Strengthening civil society, democratizing the labor movement, giving women a greater voice and defending minorities are all steps in this direction.

As we undertake these changes, we will also engage our neighbors and partners in the North American Free Trade Agreement. Nafta and the current state of relations with the United States have been good for Mexico, and we can build on what has already been achieved. Within 25 years we envision a North American area of shared prosperity, where goods, services, capital and people can move more freely across borders.

My administration will seek to "deepen" Nafta in several ways. The first involves expanding the resources and mandate of the North American Development Bank, enabling it to finance infrastructure projects in Mexico; the second, setting up North American public and private regional funds to invest in human capital in the poor areas of Mexico where most migrants to the United States come from. Both would combat poverty and discourage undocumented immigration.

Years from now, we visualize a more ambitious economic integration as we actively pursue the narrowing of wage differentials among Mexico, the United States and Canada. In the meantime, negotiations should begin with a view toward providing humane working conditions for Mexicans already in the United States, and for exploring new and imaginative mechanisms to organize and regulate future flows. These should include institutional guarantees of the human and civil rights of Mexicans and reduction of tensions along the border. The violent deaths of my countrymen on the border are simply intolerable.

Finally, I believe that the changes wrought in Mexico by the election will provide an impulse to greater effectiveness in the war on drugs. We need to stop the blame game. The drug trade is driven by both supply and demand and can only be dealt with through international cooperation. As a first step, we should eliminate the sources of gratuitous tension. The yearly ritual of United States certification of other countries' cooperation in drug enforcement strains our relationship and diverts valuable political and diplomatic resources. It should be replaced by an international mechanism to evaluate the efforts of all countries in the drug war.

Mexico is ready to do business with the United States. We want to maximize the "democracy bonus" of good feeling generated across the world by our July 2 elections, in order to significantly increase direct foreign investment in our country and to engage Washington in bold negotiations.

The onset of democracy in Mexico provides the best chance in a generation to build a forward-looking agenda that moves beyond stale debates. I am sure we can set this process in motion during my meetings this week and move ahead decisively early next year, when both our countries begin the 21st century with new administrations.