Tariff exemptions granted by Mexico

Tariff exemptions granted by Mexico under all free trade agreements (FTAs), except with Panama and within the framework of TIPAT, reaches more than 90% of the tariff universe, and in some agreements it reaches 99 and 100 percent.

Despite the significant number of trade agreements signed by Mexico, the low rates of preferential tariffs negotiated and the high degree of trade liberalization contemplated in these agreements, the percentage of imports receiving preferential treatment remained around 36% in both 2020 and 2021.

According to the Mexican government, the low use of tariff preferences could be attributed to the existence of other preferential regimes to promote production and exports, or to tariff concessions granted, for example, to some of the goods imported into the Border Region and the Northern Border Strip.

Tariff exemptions

In addition, close to 50% of Mexico’s MFN tariff lines already have a 0% tariff, which could have eroded the preferences granted under the FTAs.

As a result of tariff concessions and preferential trade, the share of tariffs as a percentage of Mexico’s total tax revenue has remained around 2% during the period under review.