Mexican free trade agreements in place for economic prosperity
Mexico is a leading Latin American country that has signed an impressive network of international trade treaties that favor entrepreneurs and global companies. In this article, we examine Mexican Free Agreements (FTAs), and their objectives, importance, advantages, and disadvantages.
Knowing this information allows individuals and businesses to have an expanded view of the most relevant aspects of Mexican international trade relations. Also, it serves to inform accountants, foreign trade managers, administrators, lawyers, and others that have an interest in this matter.
Mexican free trade agreements help companies to generate business opportunities. This is because products that are imported or exported are subject to preferential tariff rates according to the characteristics and stipulations of each treaty that Mexico has entered into.
The main objectives of Mexican free trade agreements are the:
- Elimination of barriers that affect trade between the countries that sign the treaty.
- Promotion of the conditions for fair competition.
- Increase in investment opportunities.
- Provision of adequate protection for intellectual property rights.
- Establishment of effective processes to boost domestic production and healthy competition.
- Provision of solutions to Foreign Trade disputes.
- Because Mexico has signed trade agreements on three continents, it has positioned itself as the gateway to a potential market of more than one billion consumers and 60% of global GDP.
Mexico has a network of twelve free trade agreements that govern trade relations with forty-six countries.
Additionally, Mexico has inked thirty-two agreements for reciprocal promotion and protection of investments with thirty-three countries, as well as has concluded nine limited-scope agreements (Economic Coordination Agreements and Partial Scope Agreements) under the Latin American Integration Association (ALADI) and is a member of the Trans-Pacific Partnership Treaty (TPP).
Mexico also actively participates in multilateral and regional agencies and such as the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation Mechanism APEC, the OECD Organization for Economic Cooperation and Development.