[Congressional Record Volume 152, Number 87 (Thursday, June 29, 2006)]
[Senate]
[Page S6806]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CORNYN (for himself and Mr. Coleman):
  S. 3622. A bill to authorize the President to negotiate the creation 
of a North American Investment Fund between the Governments of Canada, 
of Mexico, and of the United States to increase the economic 
competitiveness of North America in a global economy; to the Committee 
on Foreign Relations.
  Mr. CORNYN. Mr. President, I rise today to introduce legislation--
previously introduced in the 108th Congress--which I believe is 
important to the long-term competitiveness of North America. And I 
would like to thank my distinguished colleague, Mr. Coleman, for his 
support and recognition of the value of this legislation. He is an 
original co-sponsor of the bill, and I look forward to working with him 
and others to ensure its success.
  Currently, a significant development gap exists between Mexico and 
the United States and Canada. I believe it is in our best interests to 
find creative ways to bridge this development gap.
  As my colleagues undoubtedly are aware, Mexico will elect a new 
President this weekend. When President Fox was elected in 2000 it was a 
watershed event for Mexico because the election was fair and the 
transfer of power was peaceful. I hope that the same fair, peaceful 
process takes place this weekend. So I wish all the candidates well and 
I look forward to working with the new Administration and the new 
Congress on issues of mutual importance to our countries.
  Considered in the context of history, Mexico has--particularly within 
the past decade--made significant strides related to its system of 
government and its trade policies. However, much work remains to be 
done, and I think it is important that we explore ways to help our 
neighbor move their development efforts to the next level, to assist 
them as they continue on a path of prosperity and growth.
  I have come to view the creation of a North American Investment Fund 
as both central to our relationship with Mexico and necessary to ensure 
the economic prosperity of North America as part of an ever-changing 
and growing global economy. I hope that this legislation will be a 
useful vehicle to help jump-start discussions on this very important 
topic.
  My bill authorizes the President to negotiate the creation of a North 
American Investment Fund with the governments of Canada and Mexico. The 
fund can only be created if Mexico satisfies two conditions.
  First, the Government of Mexico must raise tax revenue to 18 percent 
of the gross domestic product of Mexico. Their current tax rate is 
approximately 9 percent.
  Second, Mexico must develop and execute a program of economic reforms 
to increase private investment and economic growth, while also 
maintaining economic stability in Mexico.
  These steps are of the utmost importance because any lasting changes 
in Mexico must start from within.
  The purpose of this fund is to reinforce efforts already underway in 
Mexico to ensure their own economic development. The funding would make 
grants available for projects to construct roads in Mexico to 
facilitate trade, to develop and expand their education programs, to 
build infrastructure for the deployment of communications services and 
to improve job training and workforce development for high-growth 
industries.
  As I have mentioned on several occasions, I have heard from Mexico 
leaders who say they want desperately to ``export goods and services, 
not people'' to our country. Well, I think we all recognize that 
opportunity in one's home country and immigration are linked, and I 
believe we should be more involved in helping to promote the strength 
and stability of our neighbors.
  Development provides a positive and stabilizing influence on 
economies, on government institutions, and also on immigration. We've 
seen, in past years, a steady flow of immigrants--particularly 
undocumented workers--coming across our borders. A vast number of these 
immigrants are here to work hard so they can send money home to their 
families and relatives. They may be well-intentioned, but at the same 
time, these hard workers are doing nothing to help their own economies.
  Mexico does not want the most entrepreneurial members of its society 
to permanently leave. What it wants most of all is for economic 
development to grow in their region, so that citizens would have real 
opportunities to stay and grow the economy there. But with the 
entrepreneurs and risk-takers coming to the United States, Mexico 
cannot hope to improve its own economy.
  Economic growth creates new jobs and raises incomes. This growth 
lifts people out of poverty even as it spurs positive economic reform. 
The potential for good is nearly limitless; as with such a fund we 
could spur sustainable development, strengthen private property rights, 
while also encouraging competition, regional integration, the open flow 
of technology.
  So the best solution for all of us is a Mexico economy that is 
vibrant--and one important way is to ensure its continued development 
of infrastructure and resources. The legislation I am proposing today 
would encourage this development, and I urge my colleagues to support 
it.
  I have no illusions that Congress will move quickly to approve the 
idea of a North American Investment Fund. In fact, I think it will 
likely take some time to make our case regarding the important role 
this fund would play in helping spur much-needed reforms in Mexico. But 
this investment in Mexico's future will only serve to contribute to a 
more stable and prosperous North America, which should be a goal we all 
work to actively support.
  It is important that we consider not only what is immediately 
feasible, but also what is ultimately desirable--the ultimate goal--in 
terms of the relationship between our three countries, and so I urge my 
colleagues to cosponsor this important legislation.
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