THE only Mexican bank based in Hong Kong is confident of doing more business in the territory if a major trade deal gets the go ahead.
Mexico, Canada and the United States of America look set to introduce the North American Free Trade Agreement (NAFTA) and Robert Lyon, deputy managing director at Bancomer SA, said a new European Community-style trading block would be created if the measures went through.
Hong Kong's manufacturing industries, such as garments and toys, would benefit from the cheap start up and labour costs in Mexico, he said.
''We expect companies from many countries to step up their operations there,'' he said.
''We have been speaking to companies here who are interested in setting up in Mexico to sell in the US market. There appears to be a strong interest.
''I think because the treaty is still ongoing, most firms are waiting to see if it actually takes place at the beginning of next year, when it is expected.'' Canada has ratified the treaty already. Mr Lyon said the Mexicans were on the verge of signing up.
But it has had its roughest passage in the US where there has been opposition.
