Mexico has signed numerous trade agreements, from sectoral to other deep trade integration agreements, according to information from the World Trade Organization (WTO).
Among others, Mexico is a party to the Latin American Integration Association (LAIA), the Treaty between Mexico, the United States and Canada (USMCA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Pacific Alliance.
Within LAIA, Mexico has several partial trade agreements covering only trade in goods.
The agreement with MERCOSUR is limited to the automotive sector.
Between 2017 and 2022, three trade agreements entered into force for Mexico: the CPTPP in 2018, the T-MEC in 2020 and the Trade Continuity Agreement with the United Kingdom in 2021.
These agreements cover trade in goods and services.
Both CPTPP and USMCA include disciplines on new issues such as digital trade, SMEs, trade in sustainable goods or the environment.
CPTPP was signed in 2018 and entered into force that same year for Mexico with all Parties except Vietnam, with whom it entered into force in 2019.
This Treaty incorporates almost all of the provisions negotiated under the Trans-Pacific Partnership Agreement (TPP).
In the CPTPP, Mexico maintained the market access commitments stipulated in the TPP.
As negotiated, Mexico applies the same tariff reduction schedule with all Parties except Japan; tariff reduction will end in 2033 and for Vietnam in 2034.
Mexico also negotiated tariff rate quotas for certain dairy products and products consisting of natural milk components.
In general, these quotas apply to all Parties except Chile and Peru; the quota for products consisting of natural milk components also does not apply to Japan.
Quota volumes will increase progressively until 2028 and remain unchanged thereafter.
United States and Canada
The USMCA was signed in 2018, amended in 2019 and entered into force on July 1, 2020. It superseded the North American Free Trade Agreement (NAFTA), which had been in force since 1994. However, some of NAFTA’s provisions may still be used on a transitional basis.
New issues such as trade facilitation, digital trade, environment, competitiveness and labor rights protection have been incorporated into the USMCA.
Other provisions were updated, including those relating to rules of origin, government procurement, investment protection and intellectual property rights.
Sectoral annexes were also included to harmonize technical requirements for certain products.
In addition, the Treaty stipulates that hydrocarbon deposits located in Mexican territory are inalienable property of the State. The USMCA incorporates a review clause to extend its initial term (16 years).