Mexico Bilateral Trade Agreements: A Comprehensive Overview
Mexico has become a key player in global trade in recent years, thanks to its bilateral trade agreements with various countries around the world. These agreements have helped Mexican businesses tap into new markets and gain a competitive edge globally.
Let`s take a closer look at Mexico`s bilateral trade agreements and their impact on the country`s economy.
What are Bilateral Trade Agreements?
Bilateral trade agreements are deals made between two countries to facilitate the exchange of goods and services between them. These agreements typically involve trade liberalization measures that reduce tariffs and other barriers to trade.
Mexico has signed bilateral trade agreements with numerous countries, including Canada, the United States, the European Union, Japan, and several Latin American countries. These agreements give Mexican exporters preferential access to these markets, making it easier and cheaper for them to sell their products abroad.
Canada-Mexico Trade Agreement
The Canada-Mexico Trade Agreement is an agreement between Canada and Mexico that came into effect on January 1, 1994. It replaced the previous Canada-United States Free Trade Agreement, which included Mexico as a signatory.
The agreement eliminated most tariffs between Canada and Mexico for goods that qualify as originating from one of the two countries. It also includes provisions related to intellectual property, investment, and trade-related issues.
The United States-Mexico-Canada Agreement (USMCA)
The United States-Mexico-Canada Agreement (USMCA) is a trade agreement between the United States, Mexico, and Canada that came into effect on July 1, 2020. It replaced the previous North American Free Trade Agreement (NAFTA).
The USMCA includes provisions related to digital trade, labor and environmental standards, and the automotive industry. It also includes provisions related to agricultural trade, intellectual property, and dispute resolution.
European Union-Mexico Free Trade Agreement
The European Union-Mexico Free Trade Agreement (FTA) is a comprehensive agreement that covers trade in goods and services, intellectual property, investment, and government procurement. It entered into force in 2000 and was updated in 2018.
The EU-Mexico FTA eliminates tariffs on most goods traded between the EU and Mexico. It also includes provisions related to competition policy, sustainable development, and regulatory cooperation.
Japan-Mexico Economic Partnership Agreement
The Japan-Mexico Economic Partnership Agreement is an agreement on economic partnership between Japan and Mexico that entered into force in 2005. It covers trade in goods and services, investment, intellectual property, and customs procedures.
The agreement eliminates tariffs on most goods traded between Japan and Mexico. It also includes provisions related to customs procedures, trade facilitation, and dispute resolution.
Mexico`s bilateral trade agreements have paved the way for the country`s exporters to access new markets and expand their businesses globally. These agreements have contributed to Mexico`s economic growth and helped create jobs and opportunities for its citizens.
As Mexico continues to negotiate and sign new bilateral trade agreements, its role as a global player in trade is likely to grow even further.