The World Trade Organization (WTO) detailed in a report the percentage of Mexico‘s imports with preferential treatment.
Despite the significant number of trade agreements Mexico has, the low level of preferential tariffs negotiated and the high degree of trade liberalization contemplated (in some agreements it reaches 99 and 100% of the tariff universe), the percentage of imports with preferential treatment remained around 36% in both 2020 and 2021.
The low use of tariff preferences could be attributed to the existence of other preferential regimes, such as the Manufacturing, Maquiladora and Export Services Industry Program (IMMEX) and the Sector Promotion Programs (PROSEC), as well as the fact that close to 50% of tariff lines have a 0 percent tariff.
Importaciones NMF y con trato preferencial (porcentaje)
In 2021, Mexico maintained 28 trade agreements, under which originating imports receive preferential treatment.
The average preferential tariff of the Free Trade Agreements (FTAs) negotiated by Mexico is in all cases lower than the average Most Favored Nation (MFN) tariff.
According to the WTO, average preferential tariffs range from 0 to 3.2%, as is the case for non-agricultural products.
Preferences granted to agricultural products are lower than those granted to non-agricultural products, and in some cases the preferential tariff for these products is very close to the MFN tariff (for example, with Norway).
Preferential levels for agricultural products range from 0 to 13 percent.
The tariff exemptions granted under all agreements, except with Panama and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TIPAT), reach more than 90 percent of the tariff universe, and in some agreements they reach 99 and 100 percent. This is the case of the agreements with Chile, Nicaragua and the United States.
Preferences granted under the partial agreements are below 50% of the tariff universe, with the exception of the agreement with the Plurinational State of Bolivia.
The margin of preferences granted under these agreements, compared to the average MFN tariff, is not substantial.