D:\CS\GDI TM stmt.doc

MISSION STATEMENT

The relationship of the United States with Mexico is extremely important for both countries. A mixture of mutual interests coupled with shared problems, growing interdependence, and different national perspectives shape it. Historical factors, cultural differences, and economic disparities add further intricacy to the relationship. The scope of U.S.-Mexican relations goes far beyond diplomatic and official contacts, entailing extensive commercial, cultural, and educational ties. Along our 2,000-mile border, state and local governments and citizens' groups interact closely. The two countries cooperate on many issues, including trade, finance, narcotics, immigration, labor, environment, science and technology, and cultural relations.

The trading relationship between the United States and Canada is by far the largest in the world. Two-way trade in goods and services accounts for approximately US$1 billion per day, every day of the year. Of Canada=s total imports, about 74 percent comes from the United States. The United States is also Canada's largest export market, taking about 80 percent of what Canada sells abroad. In 1998, the Canadian economy grew by 3.1 percent, further fueling this robust trade. Economic growth is expected to continue at a rate of 2.9 percent in 1999 and 2.4 percent in 2000, supporting the ongoing demand for U.S. goods and services of all kinds. Growth in oil and gas, petrochemicals, information technology, and biotech, as well as in the service sector, offers particularly good prospects to U.S. exporters. For Canadian companies upgrading their plants and equipment, as well as for those that are constructing new facilities, the United States is a principal source of new machinery and technology. Market conditions are expected to hold steady in the coming year. U.S. companies will continue to find Canada, our largest trading partner, an extremely attractive and accessible place to do business. Our objective for fiscal year 2000 is to help increase U.S. exports of goods and services to Canada by another ten percent, thus contributing to export-related job growth in the United States.

With a population about one tenth that of the United States, the Canadian economy mirrors the U.S. economy in about the same ratio. In many ways the two countries have developed along similar lines. This has made Canada an ideal export and investment destination for U.S. companies looking for an environment and marketplace that are similar to that of the United States. We believe that for the export-ready U.S. firm, "Canada First" is the right approach. Canada offers an ideal first stop for U.S. businesses that are just beginning to export. Its business practices, attitudes, and conditions are closer to those in the United States than are the business practices of any other country in the world. For U.S. companies that already have some Canada experience and are exploring expanded opportunities in the country=s diverse regional markets, geographical proximity reduces time and expense. NAFTA also offers tariff-free benefits. Add the advantages of congruent time zones, a straightforward regulatory regime, and a common language, and doing business in Canada simply makes good sense. Moreover, first-time U.S. exporters will have the chance to become familiar with some of the additional requirements of overseas marketing in the relatively familiar Canadian environment. They may also be exposed to some cultural and linguistic differences in Canada=s five distinct regional markets. Experience gained here can provide a solid basis for success in markets worldwide.

The Commerce Department=s U.S. and Foreign Commercial Service will provide logistical support for these activities at each stop.

This trade mission is the culmination of the Commercial Service=s Global Diversity Initiative, Market Entry Program (MEP). Therefore, preference will be given to (1) MEP graduates and (2) potential MEP candidates. Beyond that, the trade mission is open to all companies that meet the criteria set forth below. Approximately 10 - 15 companies will be selected.

In addition, the Department may consider whether the companies= overall business objectives, including those of any U.S. or overseas affiliates, are fully consistent with the missions= commercial policy objectives.

An applicant=s partisan political activities (including political contributions) are irrelevant to the selection process.

Applications for the trade mission to Mexico and Canada need to be submitted by April 14, 2000. The fees to participate in the mission have not yet been determined. The fees will not cover travel or lodging expenses. For additional information on the trade missions or to obtain an application, business persons should be referred to Leticia Arias, Global Diversity Trade Specialist at the contact information listed below. Applications should be submitted to Leticia Arias, in order to ensure sufficient time to obtain in-country appointments for applicants selected to participate in the mission. Applications received after that date will be considered only if space and scheduling constraints permit. Participation Cost for the mission is $750 in Vancouver and $950 in Mexico City. A company may choose to go to either site or both. Deputy Secretary Mallett will only travel to the Mexico segment of the trade mission.