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Hong Kong ignores fast track

Mexican ports along the Pacific coast can give quick access to key US markets such as Texas, Chicago and New York

BUSINESSMEN IN Hong Kong have been overlooking Mexico's potential for far too long. While many firms in other Asian economies have long been exploiting the country's lengthy border with the United States, Hong Kong's investment in the country is confined to a handful of small and medium-sized enterprises, according to Mario Leal, Consul-General of Mexico.

The fastest way to the world's largest economy was through Mexico, he said. With container ports at Ensenada, Manzanillo, Mazatlan and Lazaro Cardenas along the Pacific coast, the country offers closer access to many parts of the United States than the major US West Coast ports at Long Beach, Los Angeles, Portland, Oakland and Seattle.

'Mazatlan and Lazaro Cardenas are the most convenient, with direct rail links to Texas,' he said.

'Ships sometimes have to wait five to 10 days at the ports in Long Beach and Los Angeles because of the congestion. It would be more convenient for shippers to use one of these Mexican ports, which give easy access to such US markets as Texas, Chicago and New York.

'I am convinced that more Hong Kong companies should establish operations in Mexico,' Mr Leal said.

'We believe it would be good if companies here and in the mainland did the same thing that Japanese and Korean companies are doing. By setting up factories along the border, they are able to serve the US market better. It has been good for them and it has been good for us.'

As Latin America's largest economy, Mexico has established free trade agreements with 33 countries around the world. Since the North American Free Trade Agreement was signed with the US and Canada in 1994, annual exports have grown from US$35 billion to almost six times that.

'We are very dependant on the US market, which accounts for 90 per cent of our exports,' Mr Leal said. 'One of our goals is to attract more people from Hong Kong and China to Mexico by making them aware of how beautiful the country is and what it has to offer them. We believe it is through cultural friendship that people can get closer and afterwards they can do business together as well.'

A key step towards boosting ties between Mexico and Hong Kong has been a branding campaign designed to boost the country's profile in the city. Launched eight years ago, Mexican September brings an array of artists, musicians and dancers to the city each year, with venues ranging from the Hong Kong Cultural Centre to Sha Tin's New Town Plaza and the Fringe Club in Lan Kwai Fong.

A Latin American festival, with the participation of countries such as Argentina, Chile, Colombia, Cuba, Peru and Venezuela, grew out of the celebration last year. Following the success of a Mexican beach party at last year's festival, the Leisure and Cultural Services Department decided to launch a Latin Passion Festival.

The two events will run concurrently from October 20 to November 20. Included will be Latin dance classes, salsa parties, theatre productions adapted from Latin American literature, and a fiesta in Victoria Park.

Ties between Mexico and Hong Kong were strengthened following the signing of a visa-free agreement last year. They are set to be further enhanced when a code-sharing agreement between Cathay Pacific and Mexicana comes into effect, making direct air links between the two markets possible. This will facilitate travel to Mexico and other Latin American destinations as well.

'My colleagues in Latin America tell me it would be great for them,' Mr Leal said. 'They could bypass customs in the United States, connecting in Mexico to flights going direct to Santiago, Chile, or Buenos Aires, Argentina.'

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