FREE TRADE AGREEMENTS
Mexico has more Free Trade Agreements than any other nation which reduces barriers like government tariffs, quotas, subsidies and other prohibitions to exchange goods and services between the participant countries while also ensuring the protection of the economy of each territory.
Besides the 12 FTA´s which include 46 countries, it also has 32 Bilateral Investment treaties and 9 settlements on economic complementation and partial scope.
FREE TRADE AGREEMENTS (FTA)
USMCA (Mexico, USA & Canada):
This treaty is a modernization of its predecessor known as NAFTA. Its updates were thought to provide extended protection for investors of each participant country while promoting manufacturing jobs and to fuel the economy
Mexico - Colombia
It used to include Venezuela but, with the intention to facilitate its incorporation to the South Common Market (MERCOSUR), the then president Hugo Chavez opted out.
Today, it provides the 2 remaining countries with rules of origin and protection of intellectual property and also promotes agricultural trade between them.
Costa Rica
This was Costa Rica´s first FTA to be celebrated in its history and the first between Mexico and a Central American Country.
Chile
Because of it contemplating all matters relevant to investment and commerce, it is considered a cutting edge vanguard treaty
European Union
Making 99% of traded products duty-free and including provisions for all nations involved to fulfill the terms of the Paris Climate Agreement, this treaty has come to be known as the most comprehensive trade agreement ever negotiated by the European Union. Although it was based on a gradual short-term tax elimination, it quickly achieved the permanent elimination of all tariffs with only the most sensitive products having to go through a long-term elimination process.
Israel
Signed on the year 2000, this treaty represented a great opportunity for Mexican entrepreneurs to reach a high purchasing power clientele as well as to diversify the products that are being exported.
Central America (El Salvador – Guatemala – Honduras - Nicaragua)
Mexico has benefited by exporting plastic, medication, televisions& avocados amongst other products. The rest of the participating countries have profited primarily from Mexico´s acquisition of palm oil, clothes, shrimp, lead ores and harness.
Mexico – EFTA (Iceland –Norway - Switzerland- Lichtenstein)
In force since July 2001, this agreement positioned Mexico as the only Latin American country with free commercial access to the countries of the European Free Trade Association, however, it has (weirdly) not been used to its full capacity which leaves a highly profitable opportunity for investors from all nations involved
Uruguay
A very important commercial trade for Mexico since Uruguay is the only country from the South Common Market (MERCOSUR) which makes it a key ally for Mexican investors to conquer the Southern Cone market.
Japan
Officially known as Japan-Mexico Economic Partnership Agreement (JMEPA) this FTA was the first comprehensive agreement of Japan with any country but it also holds great importance by
Peru
If you are in the business of natural gas; coffee, tea and/or spices, you have surely benefited from this treaty since those are the main products that are imported to Mexico from Peru. Meanwhile, household appliances, automobiles and auto parts; tractors and semi-trailers; Diesel trucks and shampoo are the main products that Mexico exports to them.
Panamá
Strong strategical alliance that relies on Mexico for manufacturing and on Panama for the distribution of products to the world market, this agreement has been key for SMEs mainly due to the efficiencies of Panama in terms of maritime transport and its favorable geographical location
CPTPP
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is considered the third largest global trade agreement just after CETA (Canada – UE) and USMCA (USA-Mexico-Canada). It improves access to the markets from and in the participating countries; it promotes innovation and encourages inclusive commerce by ensuring economic development.
Bilateral Investment Agreements (BIT)
To promote a fair and equitable treatment and the free transfer of means between countries while also providing protection against expropriation and investments, Mexico signed a BIT with the next countries:
Argentina, Australia, Austria, Bahrain, Belarus, Belgium/Luxembourg, China, Cuba, Czech Republic, Denmark, Finland, France, Germany, Greece, India, Iceland, Italy, Korea, Kuwait, Netherlands, Panama, Portugal, Singapore, Slovakia, Spain, Sweden, Switzerland, Trinidad & Tobago, Turkey, United Kingdom and Uruguay.
Partial Scope Agreements (PSA)
Mexico has a number of partial scope agreements, which are integration agreements with more limited free trade coverage than a free trade agreement:
A) Global System of Trade Preferences Among Developing Countries (GSTP):
Algeria, Argentina, Bangladesh, Benin, Bolivia, Brazil, Cameroon, Chile, Colombia, Cuba, Democratic People´s Republic Ecuador, Egypt, Former Yugoslav Republic of Macedonia, Ghana, Guinea, Guyana, India, Islamic Republic of Iran, Iraq, Republic of Korea, Libyan Arab Jamahiriya, Malaysia, Morocco, Mozambique, Myanmar, Nicaragua, Nigeria, Pakistan, Philippines, Singapore, Sri Lanka, Sudan, Tanzania, Trinidad & Tobago, Tunisia, Vietnam, Venezuela and Zimbabwe
B) Latin American Integration Association (ALADI):
Argentina, Bolivia, Brazil, Chile, Colombia, Cuba, Ecuador, Paraguay, Peru, Uruguay and Venezuela,
C) Protocol on Trade Negotiations (PTN):
Bangladesh, Brazil, Chile, Egypt Israel, Republic of Korea, Pakistan, Paraguay, Peru, Philippines, Serbia, Tunisia, Turkey and Uruguay
Publicado el día 26 de Abril del 2021 por VALERIA CAVAZOS