FTA´S SIGNED BY MEXICO
Today, Mexico is the country with the largest network of Free Trade Agreements (FTA’s) in the world. Mexico’s network of FTA’s with 44 countries, in three different continents, represents a unique opportunity to foreign investors, offering preferential access to a potential world market of more than one billion consumers.
Mexico enjoys a strategic geographical location, since it's situated between the Atlantic and the Pacific Oceans, forming a connection with North and South of America, where it makes Mexico an ideal hub for world-wide production and trade.
Mexico’s strategy is to continue expanding its network of FTA’s to diversify its export markets and to attract Mexican and foreign enterprises to invest and reap the benefits of joint production in a strategic location.
network of FTA’s include:
Mexico-Chile FTA: This treaty was Mexico’s first FTA. In 1999, the original agreement was complemented with additional topics that include trade in services, government procurement, dispute settlement procedures and intellectual property. By 2005, as a result of the FTA, total trade between Mexico and Chile increased twelve-fold since 1991, reaching over US$4.2 billion in year 2008.
NAFTA between Mexico, United States and Canada: Once it came into force in 1994, the North American Free Trade Agreement (NAFTA) has been a key instrument in increasing trilateral trade. Between 1993 and 2008, total trade between the three countries grew by 227-1 percent to reach US$401.4 billion. Today, the North American region is one of the most dynamic and integrated economic areas in the world. In 2008, bilateral trade between Mexico and the US amounted US$388 billion, while total trade during the same period between Mexico and Canada amounted US$26.2 billion.
G3 FTA between Mexico, Venezuela and Colombia: This FTA has helped to build stronger ties between Mexico and South America. In year 2005, trilateral trade increased by 271 percent compare to year 1994. Such agreement has assisted Mexico in strengthening its position in those markets. Furthermore, Venezuela announced its withdrawal from the agreement in year 2006, due to differences between the two parties. This did not impact Mexico's position in the market, where today it has a total trade of US$ 4.2 billion.
Mexico-Costa Rica FTA: This was Mexico’s first FTA with a Central American country. The FTA has yielded significant results. Total trade multiplied by ten between 1994 and 2008, reaching US$1.7 billion.
Mexico-Bolivia FTA: This FTA has helped to increase Mexico’s presence in the Andean market. With this agreement, total trade between Mexico and Bolivia increased by 130 percent between 1995 and 2005. In 2008, total trade between Mexico and Bolivia reached US$157 million.
Mexico-Nicaragua FTA: Immediately upon this agreement came into force, 45 percent of Mexico’s total exports to Nicaragua entered duty free, while 77 percent of Nicaragua’s exports to Mexico entered duty free, (recognizing the differences between the economies of each country). By 2008, total trade between both countries reached US$492 million.
Mexico-EU FTA: This treaty created the first free trade area between Europe and the American continent. This FTA is a forward-looking and comprehensive agreement that offers increased opportunities for Mexican and European enterprises to create links, through forming a strategic alliance and promoting investments. In 2008, total trade between Mexico and the EU amounted US$52.2 billion. This FTA gives Mexico the opportunity to increase its trade with a potential market of 455 million people.
Mexico-Israel FTA: This FTA has helped to increase Mexico’s presence in the Israeli market. With this agreement, by year 2008 total trade between Mexico and Israel reached US$746 million.
Mexico-European Free Trade Association FTA: The Mexico-EFTA treaty, signed with Norway, Iceland, Switzerland and Liechtenstein was negotiated on the basis of the Mexico-EU FTA. This FTA makes Mexico the only country in Latin America to have concluded free trade agreements with the vast majority of the world’s highest income countries. In 2008, total trade between Mexico and EFTA countries reached US$2.4 billion.
Mexico-Triangulo del Norte FTA between Mexico, El Salvador, Guatemala
and Honduras: This treaty has helped to increase Mexican exports to Central America. In 2008 total trade between Mexico and Triangulo del Norte reached US$3.5 billion.
FTA: This FTA has helped to increase Mexico’s presence in the Mercosur market. In 2008 total trade between Mexico and Uruguay reached US$495 million.
EPA: Mexico and Japan are complementary partners. Mexico and Japan have succeeded in concluding a mutually satisfactory, balanced and high standard agreement. Since the EPA came into force, the bilateral trade has increased by 21.5% in year 2005 in regards to the same period of 2004 (April 2005 - January 2000). In 2008 the total trade between Mexico and Japan reached US$18.4 billion.
Mexico also plays a central role in several important multilateral forums. Mexico’s network of FTA’s helped it to strengthen its position in these forums and play a strategic leadership role.
World Trade Organization (WTO):
This is the world’s leading trade organization, created in order to focus on helping trade flow as freely as possible, achieving further liberalization gradually through negotiation and setting up impartial means of settling trade disputes. Mexico has played and will continue to play an important role in the Doha Development Round.
Pacific Economic Cooperation (APEC):
One of APEC’s main goals is to contribute to the development of the region, as well as to support a free international trade system. Mexico was APEC’s 2002 chair, where it hosted the “APEC’s 14th Ministerial Meeting” and the “10th APEC Economic Leaders Meeting” both held in Los Cabos, Mexico on October 2002.
American Integration Association (ALADI): A member of this regional organization since 1980, Mexico has been active in promoting closer commercial integration within the region, through the negotiation of partial scope trade agreements with other members.
Trade Area of the Americas (FTAA):
This regional forum aims to unite the economies of the Western Hemisphere into a single free trade area. It brings together 34 countries and seeks to create a balanced, comprehensive and fair free trade agreement, based on the rules and principles of the WTO.
for Economic Co-operation and Development (OECD):
The OECD provides a forum for analysis and co-operation. The OECD was created with the aim of expanding production, increasing jobs and promoting economic harmonization with a particular emphasis on helping developing countries. Mexico joined the OECD in 1994.