Minister for Foreign Affairs and Minister for Law K Shanmugam met with the host of his visit, Mexican Secretary of Foreign Affairs Jose Antonio Meade, for the second round of bilateral political consultations. They welcomed the upswing in bilateral relations, and discussed opportunities to further strengthen trade and investment, cultural cooperation and people-to-people linkages between both countries. To this end, Secretary Meade handed over the formal invitation of President Enrique Peña Nieto to the President of Singapore Tony Tan Keng Yam, to visit Mexico in 2015, to commemorate the 40th anniversary of the establishment of diplomatic relations between Mexico and Singapore. The Joint Communique of their meeting is attached at Annex A.
Minister Shanmugam and Secretary Meade also signed the agreement between Singapore’s Agency for Science, Technology and Research (A*STAR) and Mexico’s National Council of Science and Technology (CONACyT) to implement the Singapore International Graduate Award (SINGA), which will provide PhD scholarships for Mexican students to do their research training at A*STAR, National University of Singapore (NUS), Nanyang Technological University (NTU) and the Singapore University of Technology and Design (SUTD). Secretary Meade later hosted Minister Shanmugam to a working lunch, together with representatives contributing to various aspects of the bilateral relationship, where they also had a fruitful exchange of views on regional and international issues like climate change, the post-2015 Development Agenda, as well as developments in Latin America and Asia. Secretary Meade had earlier hosted a dinner for Minister Shanmugam on 17 May 2014 where the Secretary of Tourism Claudia Ruiz-Massieu Salinas was present, together with other Mexican officials and representatives from the business community.
Minister Shanmugam also met with the Chief Executive Officer of Petróleos Mexicanos (PEMEX) Emilio Lozoya, during which they spoke about the opportunities created by the energy reforms in Mexico, and the interests of Singapore companies with the relevant expertise to contribute in a win-win and mutually beneficial way to this growth area in Mexico.
In addition to these official meetings, Minister Shanmugam delivered a speech to the diplomatic and academic community, business leaders and media representatives at the Instituto Matias Romero, the Mexican diplomatic academy, on "Bridging the Pacific: The Singapore-Mexico Partnership". In his remarks which are attached at Annex B, Minister Shanmugam highlighted the opportunities and potential for collaboration between the growing and dynamic economies of Latin America and Southeast Asia, and how Singapore as the first ASEAN observer of the Pacific Alliance and Mexico as the incoming President of the Pacific Alliance, could work together to tap into those opportunities.
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MINISTRY OF FOREIGN AFFAIRS
SINGAPORE
20 MAY 2014
ANNEX A
JOINT COMMUNIQUÉ
MEXICO-SINGAPORE
Mexico City, May 20th 2014.
On May 19 and 20, 2014, the Minister for Foreign Affairs and Minister for Law of the Republic of Singapore, K Shanmugam, paid an official visit to Mexico. During his visit, he held working meetings and conducted the second round of bilateral political consultations with the Secretary of Foreign Affairs, Dr. José Antonio Meade Kuribreña. He delivered the Keynote conference "Bridging the Pacific: the Singapore-Mexico Partnership", at the headquarters of the Ministry of Foreign Affairs, and had a meeting with Mexican businessmen, organized by ProMéxico and International Enterprise Singapore.
During the second round of bilateral political consultations, Secretary Meade referred to the excellent level of dialogue between the Foreign Ministries and noted that this was the fourth time they had met in less than a year.
Secretary Meade and Minister Shanmugam recognized the need to continue working to strengthen bilateral relations. To this end, they agreed to work together to strengthen people-to-people ties as well as political dialogue, and to encourage greater communication between governments.
Secretary Meade conveyed the invitation of President Enrique Peña Nieto to the President of Singapore, Mr. Tony Tan Keng Yam, to pay a visit to Mexico in 2015, within the framework of the 40th anniversary of the establishment of diplomatic relations between Mexico and Singapore.
The Foreign Ministers welcomed the increase in trade and investment links in both directions. They agreed to explore missions, seminars and trade fairs to facilitate business linkages between both countries. In particular, they referred to the importance of the participation of Mexican companies in the Latin-Asia Business Forum held in Singapore. They also identified areas in which the private sector could explore business opportunities, such as energy, airport infrastructure, tourism, engineering and construction, aerospace, electronics and biomedical products.
Convinced that the participation of Mexico and Singapore in the Trans-Pacific Partnership agreement (TPP) will benefit the economies of both countries and will positively impact bilateral trade and investment flows, Secretary Meade and Minister Shanmugam reaffirmed Mexico’s and Singapore’s belief in the value of the TPP, and their countries commitment to maximum progress and concluding the negotiations as expeditiously as possible.
Secretary Meade and Minister Shanmugam agreed on the interest of strengthening cooperation in the fields of science and technology, culture, education, as well as to promote the implementation of joint research projects in areas such as the information technologies, nanotechnology, health, environment and climate change, and academic and student exchanges.
The Foreign Ministers expressed their satisfaction on the signing of the Cooperation Agreement for the establishment of a Joint "SINGA" Graduate Award Program between the National Council for Science and Technology (CONACyT)-Mexico, and the Agency for Science, Technology and Research of Singapore (A*STAR), the National University of Singapore (NUS), the Nanyang Technological University (NTU) and the Singapore University of Technology and Design (SUTD).
Secretary Meade and Minister Shanmugam referred to the strategic location that Mexico and Singapore enjoy, as well as the important role they play in their respective regions - Latin America and Southeast Asia. Secretary Meade welcomed the recent accession of Singapore as Observer State to the Pacific Alliance. He expressed satisfaction for Singapore’s participation in the IX Summit of the Pacific Alliance to take place in Punta de Mita, Nayarit, next June; the occasion on which Mexico will assume the Presidency pro tempore of the mechanism. In this regard, Minister Shanmugam underlined the dynamism of the Pacific Alliance and affirmed the importance of promoting dialogue between this forum as well as the Association of Southeast Asian Nations (ASEAN).
As a result of the convergence of interests and the commitment of Mexico and Singapore to multilateralism, the Foreign Ministers confirmed their resolve to continue the close collaboration on international issues of mutual interest such as climate change and development. At the same time, they agreed to maintain cooperation in different multilateral fora such as the United Nations, the World Trade Organization, the Asia-Pacific Economic Cooperation forum (APEC) and the Forum for East Asia-Latin America Cooperation (FEALAC).
Secretary Meade and Minister Shanmugam discussed ways to further improve diplomatic relations, including the possibility of the opening of a resident Embassy of Singapore in Mexico.
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ANNEX B
Minister K Shanmugam's Remarks at The
Mexican Foreign Ministry
Monday, 19 May 2014 at 5.30pm:
BRIDGING THE PACIFIC:
THE SINGAPORE-MEXICO PARTNERSHIP
Secretary Meade
Excellencies
Distinguished Guests
Ladies and Gentlemen
It is a privilege for me to speak this afternoon at the Matias Romero Institute. Thank you Ambassador Alfonso de Maria y Campos, Director General of the Matias Romero Institute, and the institute’s staff for organising this event.
Historical Ties
The historical connections between Mexico and Southeast Asia go back several centuries that pre-date other countries on the Eastern Pacific rim. The Mexican Silver Dollar was used as the currency for trade in Southeast Asia between the 16th and 19th Centuries. Of particular significance to Singapore is monetary compensation, which the British East India Company agreed to pay the Sultan of Johor for the rights to utilise Singapore as a trading post. It is a little known fact that this payment was made in Mexican Silver Dollars.
Many spices, fruits and food in Southeast Asian cuisine have their origins in Mexico, introduced into the region by Spanish traders. For example, chilli, sweet potato, papaya, tomatoes, corn, avocado, chocolate and vanilla. If “we are what we eat”, then Southeast Asians - Singaporeans – share some of our best cuisine with you in Mexico.
Singapore-Mexico Relations: Growing in Strength
Mexico is undergoing dramatic changes. Today, Mexico is an important political player in the world; and a key economic driver in Latin America. It is the second largest economy in Latin America, and one of the 20 largest economies in the world. Foreign direct investment into Mexico is US$35 billion, which almost approaches Chinese levels. Mexican exports ranked as the most technologically sophisticated and better than products from US and China. These are facts that we in Asia need to understand. Mutual understanding will serve you and us better.
In 2015, we celebrate the 40th anniversary of diplomatic relations, and I am encouraged by the significant progress made in our relations. Trade between Singapore and Mexico has doubled over the past decade to US$3.4 billion (2013), and the potential for our two countries is much greater.
Singapore is the 13th or 14th largest trading nation in the world. Singapore is Mexico’s 4th largest trading partner in Asia and 2nd largest investor from the Asia-Pacific, even more than China, ROK, and second only to Japan. Over 40 Singapore companies are investing in Mexico, and Mexico is fast becoming Singapore’s largest investment destination in Latin America. For example, Banyan Tree has resorts in Acapulco and Playa del Carmen, the only Banyan Tree resorts outside Asia, are in Mexico. Keppel, one of the world’s top offshore oil rig builders has 19 projects delivered or on order in Mexico presently worth US$3.2 billion. Secretary Meade and I witnessed the signing of Keppel’s US$400 million deal with PEMEX last year to build a shipyard in Altamira. SembCorp, another major Singapore company, and a world class oil and energy player, is on track to provide Oro Negro with six offshore jack-up rigs. SembCorp’s and Keppel’s agreements have brought over US$800 million worth of investments from Singapore into Mexico over the last 10 months alone.
Singapore investments into Mexico are very positive and on an upward trajectory. Mexico is one of the most interesting large economies of Latin America. Without question, Mexico is the country that has undertaken the most significant reforms. Mexico is a very positive story.
This interest is not one way - there is mutuality in the relationship. Mexican companies have begun to look towards Asia as well, with Singapore as a hub for Asia. Almost 70 Mexican companies have capitalised on Singapore’s strategic location as a hub to set up their Asian HQ. For example, (i) P.M.I. (oil trading arm of PEMEX); (ii) Grupo Modelo (distributes Corona Beer); (iii) Gruma (world’s largest tortilla manufacturer); and Grupo Mexico.
This robust relationship extends beyond economics. For example, in cultural and educational cooperation. Some examples include exhibitions by Mexican sculptor Jorge Marin, contemporary artist Ricardo Mazal, as well as an exhibition of Mexican Pre-Hispanic art in Singapore. In the field of education, 250 Singapore students participated in exchange programmes between NUS, NTU, Monterrey Institute of Technology and National Autonomous University of Mexico. PhD students from the National Council of Science and Technology will now be able to apply for A*STAR scholarships.
Under the Singapore Cooperation Programme, 146 Mexican officials have visited to exchange experiences with Singapore in a wide range of areas including transport, urban development, and port management.
The Pacific Alliance and ASEAN
Let me say something about the Pacific Alliance and ASEAN. Singapore is the first ASEAN observer of the Pacific Alliance. We hope to work with Mexico as the incoming Chair to tap on the vast new opportunities between Latin America and Southeast Asia. The Pacific Alliance and ASEAN have similar GDPs of around US$2.3 trillion. Both regions are embarking on similar transformative regional integration efforts. The Pacific Alliance’s recently reached agreement to eliminate 92% of tariffs on goods and services among members is similar to the objectives of the 2015 ASEAN Economic Community, whose goal is a single market and production base, and to bring down tariffs. Like the Pan-American Highway that links up Alaska to Ushuaia, the connectivity projects (roads/rail/ports/airports) will enhance ASEAN’s intra and inter-connectivity within ASEAN and with neighbours such as China.
Like the Pacific Alliance, ASEAN enjoys annual growth rates of over 5%. At US$2.3 trillion, ASEAN’s economy is larger than India’s in absolute terms. Southeast Asia is also becoming integrated with Australia and New Zealand, which when combined, adds up to a nearly US$4 trillion dollar economy. ASEAN has 650 million people who are young, skilled, with rising incomes and hungry for energy, food, and new goods and services. ASEAN is geostrategically located. Within the next 8 years, we expect that more than US$1 trillion of infrastructure investment will be needed through 2020 to integrate us better. This presents opportunities for Mexican companies.
Bridging Latin America and Asia
Our dynamic economies and shared outlook towards trade and investment make Singapore and Mexico ideal partners for furthering cooperation between Asia and Latin America, including between ASEAN and the Pacific Alliance. Both regions have a network of FTAs, which provide access to trading partners in our respective regions. Mexico’s network of 13 and Singapore’s 20 regional and bilateral FTAs together make up more than half of the world’s GDP. The future is going to be defined by mega cosmopolitan cities with excellent connectivity, education, and infrastructure, and dynamic populations. Mexico City and Singapore are both cities that share this future. Singapore and Mexico City are both strategically located within our respective regions, and the ideal centres for creating the bridge between Asia and Latin America. Mexico provides its trade partners and foreign investors an avenue into NAFTA. Opportunities in Latin America are immense. The Latin American economy has a combined GDP of more than US$5 trillion, and the Americas constitute 30% of global GDP.
Singapore serves as a convenient hub for businesses keen to tap into the markets of Asia. We are well connected to ASEAN, India, China, Japan, ROK, Australia, New Zealand through Changi Airport, one of the world’s best and most efficient airports. Half of the world's population is within a 7-hour flight radius. Over 100 airlines fly from Singapore to more than 200 cities. In terms of connectivity, safety and security, and rule of law, Singapore is unrivalled. PSA is one of the world's busiest ports and is linked to 600 ports globally. Singapore is a transhipping hub. 20% of the world's shipping containers - one in five containers all over the world is shipped through Singapore in some way. Singapore is the largest oil trading hub in Asia. 50% of the world's annual supply of crude oil and 30 million TEUs of container traffic pass through Singapore. Singapore is a hub in the Asia-Pacific for agri-commodities such as grain and sugar; and for the trade in metals and minerals; as well as being a financial and legal hub for the region. If you look at ASEAN, we are the second smallest in terms of population, but in terms of economy, we are the third largest economy in ASEAN. The potential for Mexico is therefore tremendous, and Singapore and Mexico can play bridging roles to our respective regions.
Power of Diplomacy: Medium or Small
Mexican poet and Nobel laureate Octavio Paz, who had travelled and was posted to Asia during his time as a diplomat wrote in 1976: “The world stretches out before me, the vast world of the big, the little and the medium”. Technology and connectivity bridge distances more easily than when Paz wrote this. This is reflected in the “MIKTA” grouping (Mexico, Indonesia, ROK, Turkey and Australia), which Mexico had a key role in bringing together. This initiative allows for diverse and significant regional players to come together and facilitate solutions to global challenges.
Similarly, given the specific concerns and common interests of small states, Singapore has also helped to establish platforms for fellow small-states to discuss and formulate positions on issues of mutual concern. For example, the Forum of Small States (FOSS) comprising 105/6 states who cooperate in New York; and the Global Governance Group (3G), which coordinates like-minded countries that are significant players but not part of G20. Our respective initiatives demonstrate a similar world view on the role we can play, regardless of our size, to bring together like-minded countries to address issues collectively.
Looking Ahead
My visit is the first stand-alone visit by a Singapore Foreign Minister to Mexico. This reflects Singapore’s interest to reciprocate Mexico’s and our mutual desire to deepen the partnership between Mexico and Singapore, and more broadly and importantly, between our two regions. My visit will also lay the groundwork for a visit by President Tony Tan to Mexico at President Pena Nieto’s invitation. This will be historic. It will be the first visit by a Singapore Head of State to Latin America. We also plan to organise a Spotlight Singapore arts and culture festival in Mexico to coincide with the visit, to help deepen ties and understanding between our peoples.
I hope President Peña Nieto will be able to make his postponed State Visit to Singapore soon. This visit had to be postponed last year because of Cyclones Ingrid and Manuel. To give more substance to our cooperation with Mexico and the Pacific Alliance, Singapore is also working with Mexico to establish a small expert group (academia, business and government) to brainstorm ideas on how the Pacific Alliance and Singapore, and eventually all of ASEAN, can expand and deepen cooperation in areas such as tourism, R&D and business facilitation.
Trans-Pacific Partnership
Our officials are working hard towards the very important initiative of the Trans-Pacific Partnership (TPP), which will bring our two regions together. Singapore, New Zealand, Brunei and Chile were founding members (P4), and Singapore supported Mexico’s admission in 2012. The TPP is a game changer. It will create a huge market the equivalent of 40% of global GDP and 1/3 of all world trade. Three out of four members of the Pacific Alliance, and four out of ten members of ASEAN are negotiating participants of the TPP, i.e. more than half the TPP negotiating members. A successful conclusion will provide one very important stepping stone towards our ultimate vision of a Free Trade Area of the Asia Pacific.
Conclusion
There are many exciting opportunities for collaboration between Mexico and Singapore, Singapore and the Pacific Alliance; and ASEAN and the Pacific Alliance. Mexico is undertaking major reforms which, if successful, will alter Mexico’s growth trajectory. Mexico will continue to be a key trading hub with NAFTA. Mexico has a history of trade across the Pacific and Atlantic; and can act as a conduit between North and South America. Similarly, Singapore is a key trading hub for Southeast Asia and ASEAN. Singapore and Mexico are well placed to provide this important bridge across the Pacific. Thank you for your time, and I look forward to hearing your views and taking your questions.
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