MercoPress. South Atlantic News Agency

Fox vows to vouch for troubled Argentina

Mexico promised on Thursday to vouch for the “trustworthiness” of Argentina, which is mired in depression, in dealings with the United States and other leading economies

Mexican President Vicente Fox made the pledge here, where he was taking part in a summit meeting. After meeting with Argentine colleague Eduardo Duhalde, Fox said he would intervene on Buenos Aires' behalf with the U.S. government and lending institutions, such as the International Monetary Fund (IMF).

"This is not about mediation. I am simply a promoter (who is) convinced of Argentina's cause and Mexico's common cause with that country, with Mercosur and Latin America," he said.

In his first state visit to Argentina, Fox signed several agreements, including a $25-million loan to finance Argentine exports to Mexico.

Duhalde said during a joint news conference that he was very grateful to his Mexican colleague for "giving Argentina a hand every time the chance arises." Fox, who will take part in the Mercosur summit on Friday, said the South American country has laid a clear political, economic and social path.

"Argentina is fully trustworthy. It has the ability to move forward, the talent to accomplish that and it needs the solidarity and support of the entire world to ... surmount this situation," he concluded.

On Wednesday, Mexico and Brazil signed a five-year automotive agreement as part of a larger trade pact that exempted 792 products from import and export duties.

The auto deal allows Brazil to increase exports of small cars to Mexico from 50,000 to 140,000 units, while Mexico will be able to export larger vehicles to Brazil tax-free.

Argentina and Brazil had been expected to sign an auto pact at the Mercosur summit, but officials said Thursday that the two sides had failed to work out details of the accord, and its signing has been postponed until an unspecified date.

Brazilian Industry and Trade Minister Sergio Amaral said the need for a legal review of the agreement is delaying approval.

The agreement would have set new quotas for Argentine auto exports to Brazil. Its benefits would have been felt mostly in Argentina, where lower domestic sales and the devalued peso are making exports more attractive.