Mexican president seeks investment, praises immigration reform

SACRAMENTO, Calif. — Mexican President Vicente Fox told business leaders Friday that his country's re-engineered financial markets and competitive labor costs create a powerful investment opportunity.

Speaking to a breakfast meeting of the California Chamber of Commerce, Fox said U.S. companies should use reduced trade barriers between North American nations to "bring one foot in Mexico, one foot in Canada, one foot in United States."

"Maybe you raise capital in the United States; now you can raise capital at the same cost in Mexico," he said.

The goal of a united North America, Fox said, should be "to regain competitiveness and to be able to meet the challenge of Asia and other blocs in the world."

Fox's comments came during his last scheduled stop in the capital before traveling to Los Angeles, where he will meet Mayor Antonio Villaraigosa and Cardinal Roger Mahony, leader of the nation's largest Roman Catholic archdiocese. Fox visited Utah and Washington earlier in the week.

On Thursday evening, Fox kicked off his Sacramento visit, the highest-profile stop on his four-day tour of the western United States, by praising the U.S. Senate's passage of a comprehensive immigration reform bill. He addressed a joint session of the California Legislature, met privately with Gov. Arnold Schwarzenegger and spoke at a reception and state dinner.

After choosing his words carefully Thursday night, stressing that Mexico and the United States share common economic and security interests, Fox spoke Friday without prepared remarks.

He focused mostly on his nation's improved economic indicators but also reiterated his support for the immigration bill, which he said would let Mexican immigrants come out of hiding and potentially return to Mexico to visit family.

"They can do their work with loyalty, with opportunity, with dignity," he said.

Fox thanked President Bush for his commitment to immigration reform but also credited a push by Mexican immigrants in the United States who organized massive demonstrations this spring.

"The paesanos — they fought for it, they earned what they got yesterday," he said.

The Senate bill calls for hiring additional Border Patrol agents and building a partial border fence but also includes a guest worker program and a chance at citizenship for millions of illegal immigrants. They would have to meet conditions including paying a fine and back taxes.

Fox's U.S. visit has stirred passions among the fiercest partisans in the immigration debate.

Some California Republican lawmakers boycotted his speech to the Legislature, while others attended wearing yellow buttons that read, "No mas," which they said meant no more illegal immigration.

But many Democrats embraced him, as did Schwarzenegger, who is trying to regain the trust of Hispanic voters in time for the fall election.

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Associated Press Writer Laura Kurtzman contributed to this report.