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Bush seeks to cement Canada, Mexico ties

President Bush and Mexico's Felipe Calderon heralded the reopening of the Mexican consulate as both a sign of close ties between the neighboring nations  and the rebirth of New Orleans.
Bush US Canada Mexico
President Bush greets visitors at Louis Armstrong International Airport in Kenner, La. Monday, on a trip with two missions - boosting New Orleans and expanding commerce with Canada and Mexico.Gerald Herbert / AP
/ Source: The Associated Press

President Bush and Mexican President Felipe Calderon heralded the reopening of the Mexican consulate here Monday as a sign of close ties between the neighboring nations and a reason to celebrate the rebirth of New Orleans following Hurricane Katrina.

"I chose New Orleans for our meetings with Mexico and Canada because I wanted to send a clear signal to the people of my country that New Orleans is open for business," Bush said at the North American summit. "It's a good place to visit and the after the devastation of Katrina, it's become a hopeful city."

The Mexican government closed the consulate as a cost-saving measure in 2002. Immigrants from Mexico and across Latin America have worked to rebuild the city, and tens of thousands now live in the New Orleans area. Pushing the United States to pass immigration reform as well as trade is on the slate of issues Calderon will discuss with Bush at the summit.

"I know that thousands of Mexicans have participated in the reconstruction of New Orleans," Calderon said. "I'm very happy today to see New Orleans standing and working."

However, more than two years after the storms, large swaths of New Orleans and the Gulf remain in disrepair while local governments grapple with complex issues of rebuilding. About two-thirds of the population has returned, but the trend is slowing.

Rent has increased by more than 40 percent since the disaster. About half of the homeowners who were promised money from the federally funded and state-run Road Home program have yet to see their grants. Many projects to rebuild infrastructure are under way with funding from the Federal Emergency Management Agency. However, many more haven't even begun.

Bush is meeting for two days with Calderon and Canadian Prime Minister Stephen Harper for his fourth and final North American Leaders' Summit, which is centered on expanding commerce against rising anti-trade sentiment.

The three countries already share the largest trading partnership in the world, totaling nearly $1 trillion a year. Heading into the meeting, Bush said he plans to talk to Harper and Calderon about expanding trade in the Western Hemisphere.

The timing comes as the United States is mired in an economic slide, and many displaced workers and labor leaders blame trade for shipping jobs overseas. A particular political target is the North American Free Trade Agreement, which turned the U.S., Mexico and Canada into a giant trade zone 14 years ago.

The politics of foreign trade
Democratic presidential candidates Hillary Rodham Clinton and Barack Obama have threatened to pull the U.S. out of NAFTA as a means to pressure Canada and Mexico to negotiate more protections for workers and the environment. Bush calls the idea isolationist and reckless.

He sees trade with friendly nations as essential to economic growth and national security. He and his counterparts are expected to use the platform of the New Orleans summit to defend NAFTA. And Bush, frustrated by a stalled free-trade deal with Colombia, will again urge Congress to put it to a vote.

Bush does not have plans to tour damaged areas on his 16th visit to the Gulf Coast region since Katrina hit in August 2005, but will meet with community leaders on Tuesday. White House advisers say the very decision to hold the summit in New Orleans shows that New Orleans is ready to host a meeting with three world leaders.

The federal government has approved $120 billion for Gulf Coast recovery efforts. About $90 billion of that has been obligated, while a smaller portion has actually been spent.

FEMA, the federal agency derided for its failed initial response to the hurricane, is "revitalized, has a new sense of purpose, and is absolutely dedicated to making certain that they are working closely with the city and the state," said Paul Conway, chief of staff for the federal government's recovery effort.

Most of Bush's time will be spent in a hotel and a historic former city hall in the Central Business District, out of sight from the residential areas hit hardest by Katrina. His agenda includes a few events of local flavor, but they are secondary to diplomatic talks.

But he will discuss recovery efforts and the challenges that remain at least twice: in comments to business executives Monday night, and at a Tuesday lunch with community leaders that will include his new Gulf Coast recovery chief, retired Marine Corps Maj. Gen. Doug O'Dell.

Bush's pro-trade message is up against a tough audience at home. His public approval rating dipped to a new low, 28 percent, in an Associated Press-Ipsos poll this month. Only 27 percent are happy with his job in handling the economy.