The US is the fourth largest wool apparel consuming country in the world. The Mexican Government has also welcomed the Co-operation Agreement, which will improve the competitiveness of Mexico's wool textiles sector. The Plan for the development of Mexico's wool textile industry will not only consolidate Mexico as a long term customer for Australian wool but also establish the basis for a strategic alliance between Australia's wool industry and Mexico's wool textiles industry to take advantage of opportunities in the US wool apparel market. Australia's merchandise trade with Mexico expanded in the early 1990's, albeit from a relatively low base, but has also slowed in 1995 following the Mexican peso crisis. The devalued peso and collapse of domestic demand in 1995 saw a reversal in the balance of trade, which in recent years had been in Australia's favour.
Australian investment is mainly in the manufacturing sector.
Tonight, Minister Fischer and Minister Blanco will conduct a meeting under the auspices of the bilateral Trade and Investment Commission to review progress in the bilateral trade relationship.