arms, the killing of palestinians in gaza will stop. >> the international trade conference. we are pleased to welcome ambassador montezuma of mexico, ambassador liu of singapore, ambassador of costa rica, the appointed ambassador e.u..

our moderators are kristin silverberg -- >> thank you to karen and to wet a for having us here today. the ambassadors panel has become a tradition at weta. i am excited because the topic we are discussing is critical for the ongoing debate in the u.s. about our approach to trade agreements. there was a time not too long ago when u.s. administrations went unapologetically tout the benefits of trade. but that line of argument has gone out of fashion in parts of washington. you hear officials from the tone the biden administration talking about the connection between national security and trade. they are likely to be talking about the risks of trade, rather

than the way that trade can be used to advance u.s. foreign policy interests. i am thrilled to have the opportunity to put the issue to our trade partners and ask them how they think about these connections, their trade agreements with us. ambassador moctezuma, i want to start with you and this issue of friend-shoring. and a lot of people in the u.s. government, u.s. companies are worried about supply chain risk, including geopolitical risk. we have the trade agreement with mexico. that is something to advance friend-shoring. how do you think about this trend? >> thank you. i think that we are true believers of trade in mexico.

we just became the number one partner of the u.s. last year. about $800 billion in trade. if we are partner number one of the u.s., that means an incredible effort in both countries in order -- this trend. last year also mexico received the most important foreign investment -- direct shoring investment in its history. what is interesting is that many of the companies in mexico, besides -- is they are looking for human capital. if you look there speak with the people of tesla, they say that

they found out that they would have -- in mexico that will work. that was one of the most important efforts to stop that investment. another thing i can say is that when mexico exports, we have 40% of u.s. previous imports. when mexico exports, the u.s. is also exporting. what this shows you is that mexico and the u.s. on it just trade partners, but that we are producing together. there are many companies -- on the border.

they are produced together. it is not just trade. it is economic integration. >> ambassador sanchez, let me ask about costa rica's trading relationship with the u.s. when president bush signed into thousand four, he unapologetically decided strategic benefits. he said it would impact influence in the region and so on. the economic benefits of the deal around bilateral trade have expanded but you think it has also met some of the expectations in terms of strategic benefit. can you talk about the broader consequences? >> sure. i want to talk to everyone. one of the first things people

ask for when they ask about costa rica, they think it is just a place to visit. most of the pineapples and nana's are from -- bananas are from costa rica. when i told them, their number one export our medical devices, people think, i did not know costa rica did that. yes, we do. nafta has been a success story for costa rica, not only medical devices but also semi conductors and other things. let's start with costa rica. it has had strong friendships, working relationships with the united states. but it helped expand those relationships, not only with the u.s. but also within the central america, a big plus. we have two vibrant sectors.

i have mentioned them already. the medical devices are also close to national security and semi conductor's. i can tell you that until last year in august they announced a $1.2 million investment in the next two years in costa rica. this is a tiny country that people think about going to to travel, which is great. again, what are the challenges we are having? this is 20 years ago. challenges today is that there are political challenges within the central american region that probably makes the deal still beneficial for all countries, including costa rica, which is

why costa rica is asking why not look into other options? let me give you a bit of insight into how we are. i do not know if you heard the thing in costa rica, everything is true in life? it is slow but we get there. what do i know about that? you can be slow and not get where you need to go. we decided to be part of the highest standard in the world. it took us 10 years. when we first started, the current minister of trade was part of that. they said you are crazy. costa rica has two have changes in laws, regulations. 10 years later, he did it. that means that costa rica can join usmca.

usmca has high standards. costa rica can live up to those standards. it prepared us for that. that does not mean that if we start with other trade agreements that we are going to leave some behind, but we can give more and we can have higher standards. >> ambassador liu, let me ask you about singapore's trade agenda. you have now invented 27 fta's. within singapore, do you think of those your economic agenda or as a foreign policy tool? >> trade is three times gdp in singapore.

how it was forged by the u.s. coming out of world war ii. that has contributed to international stability, economic growth. like -- i think in our part of the world, we are seeing how trade has -- but also regional, even global integration of economies. when we talk about foreign policy, -- i think trade has for a number of decades -- you can see

results arising from four in the relations, -- from foreign relations, from the improvements that we find. we are in the early decades of globalization, many masked some of the problems that we see today, inequality and inefficiencies arising from globalization. nonetheless, the trading system has been a plus. mediated about singapore in the u.s. -- this year, we celebrate the 20th anniversary of the free-trade agreement to our two countries. when we have good trade data,

those 18 years actually trade between our countries has grown three times, from about $70 billion inception to now about 210 billion u.s. dollars. the u.s. enjoys a healthy supply. the u.s. runs a surplus. one masking the other. and the result of the free trade agreement, we have companies in singapore using. but singapore is a springboard to the larger region. the integration that we see across larger economies.

investments of u.s. into singapore give a sense of what it is like. it is close to half a trillion u.s. dollars. what does that mean? in singapore is larger than the u.s. into china, japan, and south korea combined. when i say that, actually they did not have economic skin in the game for the u.s. to remain deeply invested in our part of the world. >> can you that you have a form policy background from lithuania -- what are your reflections on

the role of trade and foreign policy? >> would like to think the president of the manufacturing association. if we want to advance or move together with our trade and make sure that our -- move forward, we have to do those two together. we -- in transatlantic relations, it is a value-based partnership. we were the ones who built international organizations.

we probably have to appreciate more how it works. would not be the same if we do not have those international rules. my colleague was talking about -- many more. what is happening right now in the world i think it is getting scarier with each day. turbulence around the world has huge implications on our economy. it has challenges, the price of inflation, supply chains.

on the other hand, we have reliable trading partners. even during the crisis, you see trade growing. last year, we had 1.3 trillion euros. last year, almost 5% higher. one of the reasons was that in europe, we have to make a change. overreliance on russian energy has been the issue.

do not underestimate how much it costs, making sure -- during the winter. on top of that, you have to find where alliances matter. most of the growth of the trade is due to lng. when you need to switch, when you need to change more than 60% of your energy resources, after reliable your allies. we can go sector by sector. we can go into the connectivity

sector and think if you want to have alternatives or a reliable, secure reduction will, -- production line, you will always depend on the partners of the first. >> let me stay with you. the u.s. and europe have a history of using combined economic influence to work together to address national security risks through foreign policy objectives, sometimes using trade tools in cooperation with each other. do you think we are in lockstep on china? if not, where do you see it going? >> i think the biggest difference -- the du approaches

china as a trading partner. and as a system of arrival. we can use different synonyms and you will find that the u.s. approach is not much different. national security advisor's talk about -- we have a couple of weeks to go at the end of january. there is an economic security strategy which generally includes four major sectors. semiconductors, computing, quantum computing, biotech.

today i. even sector wise, this includes making sure do export controls, investment screening? investments, how we see certain sectors. i am sure we will have to witness as well, actually looking into what we do is research -- in science. science and research can be sensitive. these are approaches which we

have a format for trade and technology. we have a possibility to discuss , not only discuss but compare, our notes. >> ambassador yew, you served in china. anything you want to add about cooperation with the u.s. on these issues? >> singapore is a small country. we are mindful of the sensitivities in the u.s.-china relationship, especially over trade in sensitive areas. the role has gone from one where the operating paradigm was interdependence to one where we are acutely mindful of

overdependence. now you are really trying to untangle to try and find ways to try and make supply chains, trade relations more robust. today, it is more focusing on a particular country. the u.s. may be overreliance on a country. not just focusing on countries but companies. you have secondary order that you have to study in the years to come. singapore is a hub for investments around the world. a significant part of it comes from the u.s. but japan, de you

-- the eu, chinese companies coming into singapore. singapore will have to thread the needle carefully. we still believe that -- in the cross-pollination of ideas and people that we must also find a cost solution. it is important for singapore to ensure -- it is going to be separate. >> we are coming up on the sunset review in 2026. we have already begun conversations around that. jay simmons was saying that canada has a few issues.

some of these issues around national security will be part of that conversation. how do you see the sunset review playing out? can you highlight that? >> usmca's success story, what i believe is that we have to start looking at the forest. that is the future of the u.s.. i am going to give just an example. if you look at production of transportation equipment, if we see manufacturing in the world, china produces 9.8% of the world transportation equipment. the u.s. produces 7.6%.

mexico produces 6.4%. canada produces 2.9%. when north america produces 16.9%, that is more than 9.8%. what we should be thinking is about the medium and long-term review. we are giving strength toward that future with the chipset science act. when they are giving credits to products that are produced in north america.

the north american region has to be seen as a unit. that means that foreign policy entreated must be lumped together as one common effort. what i am optimistic about believe that share values and the fight for freedom and democracy in the world will be led by north america, which i am sure will become the most competitive region in the world. >> the world is watching our presidential campaign play out. we are also watching yours. are trade issues a big part of the campaign? what are the issues/ >> in mexico, campaigns have not

an an official structure. there are candidates. we will have a woman president for the first time in history. but the campaigns of not started. trade with the u.s. is about 70% of our trade. from gdp, 80% is manufacturing and trade. it is good for us. >> ambassador sancho, one of the interesting approaches the biden administration has taken is instead of negotiating traditional trade agreements, they are pursuing novel trade frameworks. can you talk about that approach, whether your lien

ambitions -- what are your main ambitions? what do you think it's possible? >> interesting the -- interestingly enough, costa rica will be hosting next year in 2025 the meeting, the aipac meeting. also, president shall has accepted the are who will take on a leadership role. there is the possibility they are discussing about which countries will be part of aipac, not just the countries in right now but others there is a possibility of them joining. there is a lot happening with the apex. at the last meeting, that was in november. many presidents of the region were here discussing the next steps. costa rica has two main sectors.

one is the comers of trade. the other is more of a foreign relations. those are the two tracks that we are joining. or that we are leading. we are also leading the one on the center for excellence, which is related to these funds. costa rica will be hosting. every country will have its own responsibility but costa rica is hosting the center for excellence related to tech knowledge he. a regional center for excellence, which, as you know, probably, we do not have in the u.s. that is a problem worldwide. there are not sufficient people with the necessary skills for technology jobs. if i am not mistaken, there is a lack of 300,000 people in latin

america with those skills. that regional hub, which is already moving into costa rica, and the government is taking on, giving us a chunk of money to make a virtual lab. there will be a cloud lab. the people in latin america, from mexico, from argentina, from everywhere, can go there trained and help the region overall. in the u.s., there is also a lack of ills. we are all having the same issues. that is what costa rica is doing with apex. however, we also see apex as a great opportunity. when things are not as open as we wish the were in relation to trade, then we have to look for

other venues. apex is a good other venue to start. we will have to see how it evolves and how it actually -- we want to see results. that is what costa rica is trying to do. i think other member countries, that is what we are looking at. >> one final question for abbasid or yew -- ambassador yew . i wanted to get to the digital trade and the role singapore is playing in that. your fta with new zealand has become a standard for digital trade agreements. any talk about the future of digital trade? >> what to talk about a new economic architecture that is being envisioned. you have the cbt pp.

china is knocking on the door. you have the rcp, initiated to bring together our main partners in asia. we have china, japan, korea, australia, and new zealand. we have the digital economy partnership agreement initiated by singapore and chile. south korea is on the verge of being admitted. china is knocking on the door and so are canada and costa rica. there is a danger that the u.s. is absent from all the economic architectures in our part of the world. you look 30 years down the road.

relations with asia and the indo pacific, which is why singapore is so deeply invested in high-tech. we see huge benefits for us economically. we already have bilateral free trade agreements in almost everything, but because we the that the u.s. cannot afford it economically -- cannot afford to be absent economically from our part of the world, the digital agreement, we believe -- the way forward. we have got bilateral's with the u.k., with australia, south korea. we have got an agreement with australia.

we believe that there are going to be benefits, particularly when it pertains to -- also because for some concern within the united states. we believe that we need to work together in establishing the rules, the standards, and -- to make sure that the economy, transactions, integrations can take place in a structured manner going forward. >> very compelling points about the importance of u.s. engagement in the region. i want to ask the audience to come in now with questions. i see effect -- a question that the front table. >> i am barbara simmons, vice

chair of the international law section for the bar. we are in talks with the continental free-trade area. i was pleased to see that ambassador todd has signed an agreement with the african continental free-trade area. my question for the ambassadors is what do you see is your short long-term relationship with africa, as a continent, not a country, in terms of trade and how that serves the foreign policy approach? >> thank you for the question. it is not really a secret. you consider south africa a neighbor.

there relations are as good very stable but we are talking about the continent. there are security issues, questions about democracy and rule of law. but who is a bigger contributor for the international partnership? in other words, development. i think that actually it really paved the way for the no border trade relations. it is another project for which there is a changing mindset and moving on his global gateway. there is an approach which is supposed to encourage partnerships, not only government to government, but the private business and financial institutions, to partner in infrastructure

approaches. the would then pave the way for the more favorable trade and commerce relations. if it works, we would be in an absolutely different future of commercial relations in three to five years. >> other questions? >> doug palmer with politico. this is for the mexican ambassador. i had gotten in the mail the other day from a reader asking me if i had heard about a rumor that the mexican government was going to put forward an executive order to increase tariffs? i hadn't heard about it, but

hearing him today. i thought i would take the opportunity to ask his there some mexican government tariff action? >> not that i know of. >> [laughter] >> i am from the south china morning bulletin. we talk about elections and tariffs. i wanted to ask when donald trump says 60% tariffs, nato is not an ally, how do you view that? are you thinking about how you will deal with the tariffs? and how tariffs like those actually impact what we are talking about traders foreign policy? i have a question for the

ambassador from singapore. you talked about chinese companies. recently, we saw the ceo of tiktok being grilled. some questions -- how does a grilling, questions like that impact what you say but trade in foreign policy? someone was asked if he worked for the chinese communist party. >> the 10% impact of 10% tariffs. what is the impact? >> that would be -- that would hinder our relationship. it is against free-trade.

what i truly believe is that the future of mexico, canada, and the u.s. is to work together and have a higher view about the world's development. we are not just sharing goods and services. we are sharing values. when you start taking down the foundations of free-trade, the one that put us in these conditions, i think that is not a good idea. >> anything to add on that tiktok? >> we hold him in high regard. i think we are also going to see the line of questioning that he took and the remarks he remade

-- made subsequently from two angles. one, elections, they need to be able to mentally understand the sensitivities but also find ways to address them. that is one part of it. two, i think it reflects some of the concerns that the u.s. may have over trade relations with china, their engine self were coming out of china that would hold a significant volume of data, possibly sensitive data, of u.s. citizens. i would say something that can be understood, appreciated. i think, though, a line of question taken too far can

possibly undermine the image and standing of how the u.s. is achieved in different parts of the world, not just in asia or in singapore. i think a fine balance that needs to be struck between some of the security sensitivities and also the overall image and impression that the u.s. will continue to portray to the rest of the world. >> thank you. i think we have time for one more. >> at georgetown law. question four ambassador yew, you are listing the free-trade agreement in asia and saying how the u.s. is not even knocking on

the door but china is. i was wondering, it seems like china wants to get in. this position of what kind of compromise or concession are the other countries that are part of these agreements asking for from china? is there a position where you can ask what kind of concessions and can the u.s. or other regions learn from that? >> i am not privy to the discussions that are taking place. that working group that started for china as it did for canada on the issue of partnership agreements. the one for china -- we have not gone to that stage yet.

across both of these agreements is the need for consensus by all current members to accept a new member. that consensus is built on top of an assurance that an applicant can fully meet the standards. number two, that members are convinced that the applicant will faithfully abide by the terms. we believe those are standards that we will not compromise on. in healthy particular applicant will shape up, that is for the focus groups to deal with. >> thank you. the panel before us -- >> it is good to have a regional

agreement, especially having in mind the topic that goes beyond any single continent, like e-commerce or digital trade. but we have really to be sure that they are sharing the same values, that the most important thing for arranging the global agreement is wto. if we do not manage to do all of this, it should be more lateral. everyone has to be on board. i think that is like minded countries contest standards for that, we will all be better off. hopefully, the u.s. will actively join on that. >> i am going to give you the last word.