THE issue of the annual renewal of China's Most Favoured Nation (MFN) trade status by the US may lead to some Hong Kong manufacturing companies shifting to Mexico, according to Mexico's consul-general Agustin Gutierrez Canet. ''Some manufacturers may consider moving to Mexico if they have markets concentrated in the US,'' said Mr Canet. He said Mexico offered a more stable and long-term planning climate. It also offered free and clear access to the US market. Mr Canet expressed support for China's move to rejoin the General Agreement on Tariffs and Trade (GATT) as membership would resolve the MFN issue. MFN is automatically applied to GATT members. He also said China would not be threatened by the North American Free Trade Agreement as he did not foresee a surge in Hong Kong investors to Mexico. ''Hong Kong's economy is becoming more regionalised and involved in Southeast Asia. Trade between the Asia-Pacific region is growing more than with external regions like the US and Europe,'' he said. Mexico also could not compete with the cheap labour in China where a worker earns only about US$60 a month, compared with $300 in Mexico. Mr Canet said Mexico's trade with Hong Kong had doubled over the past three years, rising to $650 million last year.
