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CNN Live At Daybreak

President Bush South of Border, First Stop on Three-Nation Tour of Latin America

Aired March 22, 2002 - 05:35   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Turning our attention now to Mexico, President Bush is south of the border this morning, the first stop on a three-nation tour of Latin America. Mr. Bush has joined other world leaders in Monterey for a United Nations summit on global poverty. But where there is talk of poverty, can talk of terrorism be far behind? Our White House Correspondent Kelly Wallace is traveling with the president.

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KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: President Bush definitely expected to focus on the war against terror during his Latin American tour. But acts of terror taking center stage even before the president's trip got underway. Mr. Bush waking up Thursday morning to learn about the deadly car bombing in Lima, Peru Wednesday night just outside the U.S. embassy; at least nine people dead. President Bush to travel to Lima on Saturday.

The president asked about the violence before he left the White House, asked if he was concerned, asked if he was going to change his plans. A tough-talking Mr. Bush said he would not be intimidated and that his trip was definitely still on.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm still going. I'm sure President Toledo will do everything he can to make Lima safe for our trip. You know, two-bit terrorists aren't going to prevent me from doing what we need to do, and that is to promote our friendship in the hemisphere.

WALLACE: The president now, Thursday evening, joining the other leaders attending. The United Nations summit focusing on the developing world. Mr. Bush joined by President Fox of Mexico, Prime Minister Chretien of Canada and other leaders. The president expected to really link the war against terror with the war on poverty.

Mr. Bush to say that terrorists often try to take advantage of countries in need, poor countries. He will pledge an increase of $5 billion in U.S. assistance to the developing world, but look for Mr. Bush to face some criticism on Friday at the U.N. meeting. Some people around the world think the United States, the world's richest nation, definitely should be contributing much more than it currently is.

Kelly Wallace, CNN reporting from Monterey, Mexico.

(END VIDEOTAPE)

COSTELLO: And also at the U.N. conference, President Bush and the leaders of Mexico and Canada renewed a commitment to see free trade throughout the hemisphere. Our Financial News Correspondent Casey Wian reports on current trade relations between the United States and Mexico.

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CASEY WIAN, CNNFN CORRESPONDENT (voice-over): The Mexico Trade Center of California helps small Mexican businesses break into the U.S. market. One early success, this gift shop, selling the wares of indigenous Mexican craftsmen.

ALFREDO CRUZ, DIRECTOR, MEXICO TRADE CENTER: We wanted to bring the NAFTA agreement to these companies. A lot of these companies, they don't have the potential -- and especially we're talking about economics -- they don't have the money to have physical representation in the state.

WIAN: Open just a year, the trade center has so far put together $8 million in deals, and plans to double that this year. Overall, U.S. trade with Mexico has exploded since NAFTA, from $80 billion a year in 1994 to $250 billion last year.

REP. DAVID DREIER (R), CALIFORNIA: Breaking down trade barriers has been an extraordinarily positive thing, improving the relationships between -- the relationship between the two countries, and also improving the standard of living in both countries.

WIAN: Still, disputes continue to strain trade relations. One persistent sore spot, avocados. The United States has gradually eased restrictions on cheaper Mexican imports. But California growers say Mexican avocados are not subject to sufficient disease and pest controls, and endanger their billion dollar a year industry.

MARK AFFLECK, PRESIDENT, CALIFORNIA AVOCADO COMMISSION: The idea behind NAFTA is one that we support. We've always supported the government on trade expansion. But, on the other hand, it's led to the danger that we face.

WIAN: So California growers are suing the U.S. government, seeking stricter controls on Mexican imports. Other problem areas include Mexican trucks, which the United States is in the process of allowing on to more U.S. highways. Several Mexican trucking companies are suing the U.S. government for $4 billion, claiming the U.S. is stalling. Last month, the United States filed a complaint with the World Trade Organization over access to Mexico's telecommunications market. And a dispute over Mexican taxes on soft drinks made with U.S. corn sweeteners was settled this month, but only temporarily.

(on camera): Bush administration trade officials say the ongoing disputes are actually a direct result of the success of NAFTA. More trade between the United States and Mexico, they say, means more opportunity for relatively minor disagreements.

Casey Wian, CNN Financial News, Orange County, California.

(END VIDEOTAPE)

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