A note from Ambassador Garza

Here in Mexico, as I travel the city and around the country, it’s clear we’re headlong into the holidays. There’s the typical end of year flurry of activity and plenty of reflection on the past year. It’s a good time to gather, count our blessings and look ahead with hope to 2011.

I can still recall my holiday greeting to you around this time last year. In it, I quoted American novelist Henry Crews, who wrote, “survival is triumph enough,” a phrase that I felt summed up 2009, a year marked by global recession, economic uncertainty and, here in Mexico, increasing concern about violence and security.

For the U.S. and Mexico, 2010 was marked by moments of contention over Arizona’s controversial immigration law, talk of violence bleeding into the U.S. from Mexico’s fight against the drug cartels, and most recently the dust up over WikiLeaks.

And, while those challenges remain with us, the fact remains that our two countries are bound together and are best served by cooperation and coordination, anchored in mutual respect.

As both countries work to regain economic footing and shake off the remnants of the global recession, we’re seeing signs of recovery, albeit modest, underway in both countries. Mexico should close out 2010 with GDP growth right around 5 percent. It’s not a complete bounce back from last year’s 6.6 percent contraction in GDP, but clearly a positive sign.

J.P. Morgan’s Latin America and Caribbean Global Outlook 2011 provides a solid report on the region. You’ll find Mexico highlighted on pages 40-44, but the whole publication is worth a read.

The October 1 inclusion of Mexico in Citigroup’s highly regarded World Government Bond Index (WGBI) has generated interest from foreign investors, and on an interesting and perhaps still anecdotal note, we’re seeing more evidence of Chinese firms making investment in Mexico as well as other global companies choosing Mexico over China owing to lower transportation costs.

And, in spite of a steady stream of reporting on violence in Mexico, USA Today recently looked at concerns over security and their impact on the country’s tourism. Reports show that visitation to Mexico was up 19 percent over last year (through Sept. 2010). Discerning tourists are picking their spots and signaling confidence in the country.

Next year, President Felipe Calderon enters his fifth year in a constitutionally limited single six-year term, and many eyes are already looking to the 2012 presidential election. I suspect we’ll see plenty of political activity in 2011, with the largest prize being the governorship in the country’s largest state, the State of Mexico.

While it’s likely we’ll see some cooperation across parties and borders on security in the near term, I think it’s unlikely we’ll see dramatic reform coming out of Mexico’s legislative bodies. Expect to see modest initiatives aimed at bolstering the country’s competitiveness, but serious fiscal, labor or energy initiatives will be put on hold.

The end of year is also a great time to find inspiration in individuals and organizations that are making a positive impact on the lives of those facing extraordinary challenges. One of those organizations that I’ve stayed close to here in Mexico City is the John Langdon Down Foundation. I’d encourage you to explore the art, work and passionate commitment the Foundation brings to their guiding mission, “Todo ser humano tiene derecho a ser feliz (Every human being has the right to be happy).”

As always, I want to also take this moment to express my appreciation to friends, clients and my colleagues at both White & Case and ViaNovo. To each of you, your confidence in me is something for which I’m extremely grateful.

As you begin the New Year, I look forward to staying in touch and hope you’ll feel free to call on me if your interests bring you to Mexico or if I might be of some service to you in the U.S. or across Latin America.

With best wishes to you and your families for a joyous holiday season and a prosperous 2011, I am,

Sincerely,

Antonio O. Garza