Saudi Arabia and Mexico established diplomatic relations in 1952. For more than six decades bilateral exchanges between both countries have been somewhat limited — given the magnitude of both economies. At the same time, an ever growing dialogue has been gradually unfolding on multilateral fora, in which the two countries are active and significant players.
Mexico is eager to enhance its relationship with Saudi Arabia. It is well known that this country has achieved wide-ranging reforms over the past few years. Its impressive ascent in the World Bank’s Ease of Doing Business Index is a compelling example of the success of that process: In the space of a few years, Saudi Arabia went from the 67th to the 22nd position. It is also ranked among the top 10 for ease of registering property and paying taxes. These are all signs of Saudi Arabia’s commitment to developing a strong, open and thriving economy.
Mexico too is in the midst of historic changes. It is, by all accounts, one of the largest economies in the world. Its GDP amounts to $1.2 trillion, making it Latin America’s second largest, 4th in the Americas and 14th in the world. And it also has a large internal market, ranking 11th in the world in terms of population.
Mexico’s major economic indicators have been consistently strong. Its Macroeconomic stability derives from a low inflation rate (below 4 percent), low levels of debt (31 percent of GDP), low interest rates (3.17 percent for 28-day sovereign bonds), a highly capitalized financial system with a new banking reform to increase lending, and one of the OECD’s lowest unemployment rates (5 percent).
Mexico is strongly committed to free trade, capital mobility and productive integration. Together with Germany and the United Kingdom, it is the G20’s most open economy. Mexico has 10 free trade agreements with 45 countries, including the United States and Canada, the European Union and Japan. Its products have preferential access to more than 1.1 billion consumers around the world. Mexico exports more than $280 billion worth of goods and services to the US each year.
Mexico has a young, talented and qualified labor force. In Mexico, the median age is 27, well below that of other major exporting countries. We are equipped with the ideal demographics to support our economic growth. Likewise, Mexicans increasingly have higher levels of education and specialization and the country as a whole enjoys the most significant development in human capital in Latin America. Each year, more than 100,000 engineers and technicians graduate from our higher education institutions and increase the country’s productivity and competitiveness.
Mexico ranks among the top three exporting powers of the G20 in terms of mid- and high-level technology manufactures. It is also the strategic destination for the expansion of global industries, such as those of domestic appliances, aerospace and automotive. This manufacturing success is partly the result of Mexico’s sound infrastructure for world trade and its strategic location, between North America and Latin America, and between the Atlantic and the Pacific, give Mexico direct access to the most dynamic markets in the world.
And, of course, Mexico is a strong and stable democracy. Its institutional strength and political maturity have allowed Mexico to pass transforming reforms that push forward its modernization process. In only one year, 10 structural reforms were passed, to improve the following: The labor market, education, telecommunications, economic competition, the financial sector, fiscal policy, social security, the political and electoral framework, the fight against corruption and the energy sector as a whole.
On the basis of our current strengths and future prospects, Mexico and Saudi Arabia have today an opportunity to enhance their relations in areas of mutual interest. We, in Mexico, are eager to strengthen our political dialogue, as well as to explore and develop new areas of engagement, including trade and investment, scientific and technological research, education and cultural exchanges. In doing so, we are mindful of the Arabic proverb according to which, “He who sows kindness, reaps gratitude.” We are already grateful for the dialogue and cooperation both our countries have fostered over the years. And, in that same spirit, we are ready to sow the seeds of future friendship between our peoples.
n The writer is the minister of foreign affairs of Mexico
