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Mexico & Nafta - 15 July 2003

What the new congress wants

The significant point about the clamour for a change in economic policy is that it is coming from all corners of the new congress. The PRI seems to be likely to press for a big government solution: PRI deputy David Penchyna argues that the rise in unemployment under Fox is due to the government's cutting back of investment programmes: he argues that the government has cut M$30bn in capital spending in each of the past three years. 

Other prií­stas are echoing him, saying that creating jobs has to be the economic priority for the government now. 

The leftwing PRD is also pressing for more action on job creation. Its president, Rosario Robles, argues that the problem is the product of 20 years of misguided economic policies. She said that the PRD will press for more investment, both public and private. As for promoting exports and foreign investment, she said the party would press for less focus on competitiveness and more on marketing Mexican products internationally. 

Even Fox's Partido Acción Nacional concedes that something must be done to promote new jobs. A senator, César Jáuregui, said that the employment data (in particular the loss of 570,000 jobs since Fox took office) was an amber light for the administration. He toed the government line, claiming the the loss of jobs was largely due to factors beyond the government's control, such as the slowdown in the US economy. 

Jáuregui argued that Mexico had suffered less than other countries from the slowdown in the US economy because of its sound domestic financial position., which, he claimed, had encouraged foreign investment.

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