Fox Warns of Isolationism During Times of Economic Crisis

By Matthew Schewel
Published in the Dialogue’s Latin America Advisor, November 13, 2008

Originally published in the Dialogue's daily Latin America Advisor

OMAHA—Former Mexican President Vicente Fox on Tuesday warned against repeating what he said was a crucial mistake of the Great Depression—closing off markets during an economic crisis in an effort to create domestic jobs. Fox, who served as president from 2000 to 2006, has publicly questioned President-elect Barack Obama's views on trade. In an interview with the Latin America Advisor, the former President said any attempt to return to the isolationism and "nationalistic attitudes of the past" would be short-sighted.

"Many thought that by limiting trading and open markets that you would be creating the jobs on your own within your economy," Fox said of the Great Depression. "That was a big mistake then, and that mistake should not repeat [itself]." Obama was sharply criticized by his opponents during the campaign for both his reluctance to support the Colombia Free Trade Agreement and his promise to renegotiate the terms of NAFTA. "He who looks at the figures of NAFTA in depth will learn that NAFTA through the imports that Mexico makes from the United States has created hundreds of thousands if not millions of jobs [in] the US economy, because Mexico imports from the United States over $200 billion [worth of goods] every year," Fox asserted.

The former president visited Nebraska this week to sign an agreement between the Omaha-based Gallup Organization and Centro Fox, his Presidential library and think-tank. The partnership will focus on leadership development in Mexico and Latin America, and will provide the Centro Fox with access to Gallup polling data.

Fox declined to offer specific advice for Obama and Mexican President Felipe Calderon on how to cultivate a strong relationship, but said he hoped Obama would travel to Mexico on his first foreign visit. The two critical issues that will define the bilateral relationship, even before trade, are immigration and security, he said.

Tough economic times have taken their toll on support for immigration reform in the US, but Fox said a deal like the one proposed by Senators John McCain (R-AZ) and Ted Kennedy (D-MA) in 2005 remains crucial. Fifty-two percent of potential voters were opposed to a path to citizenship for illegal immigrants, according to a Zogby/Inter-American Dialogue poll conducted last month. "Let's compare that same situation five years ago, when the economy was healthy and growing," said Fox. "Then two thirds of citizens in the US would support the idea of an immigration reform, the idea of welcoming these immigrants because the economy needed them."

In an effort to turn the tide of American public opinion, Fox has made it his mission to spread his views on what he calls the "economics of migration." He is currently developing a partnership between Centro Fox and Harvard University to research the issue. "I think there's a lot of misinformation, there's a lot of lack of information, about the economic impact of migration," Fox said. "Many people don't know the impact of these people not being here."

On security, Fox called Calderon's crackdown on the drug cartels "courageous" but lamented that the economic support promised by the US under the Merida Initiative has still failed to materialize. In addition to collaborating with Mexico to prevent drugs from moving through the country, Fox urged the US to tackle the problem of drug consumption at home. "We are not to blame each other, but we are to build shared responses to this problem that is common to both of our nations," he said.