Canada and Mexico agreed on Friday to strengthen the procedures of the North American Free Trade Agreement(NAFTA) to ensure its rulings are respected.

"Mexico fully supports Canada's position to make sure that the decisions of the NAFTA panels in the settlement of disputes are upheld," Mexican President Vicente Fox said at a luncheon hosted by Canadian Prime Minister Paul Martin in Vancouver.

Canada is demanding Washington scrap duties on Canadian softwood after a NAFTA panel ruled the United States had failed to justify the need for the tariffs imposed three years ago, but has been rejected.

Canada is committed to working with Mexico on all such issues, Martin said.

The two leaders issued a joint statement lauding the significant progress in bilateral trade since the signing of NAFTA.

Canada is now Mexico's second-largest trading partner while Mexico is Canada's fifth largest.

Fox, who is on a two-day visit in Western Canada to promote investment opportunities in his country, also urged greater cooperation between the three NAFTA partners, Mexico, Canada and the United States, amid increased competition with Asian countries.

On Thursday in Canada's oil-rich Alberta, he suggested that a North American Free Trade Agreement deal for energy be established to "protect the continent's prosperity."

Source: Xinhua