Mexico`s proximity to the United States and Canada has created a vast North American logistics centre that provides easy access and access to goods for all three countries. The North American Free Trade Agreement (NAFTA) stimulates trade between the three countries by removing tariffs on products with a 60% rule of origin in North America. Mexico`s main exports to the United States and Canada are automotive, auto parts and electronics. These exports are due to two- and three-way trade, in which more than half of the materials used in the products came from a NAFTA country. This form of trade has increased the GDP rates of the three countries over the past 23 years. Mexico offers more free trade agreements (FTAs) than any other country and is a trading partner with more than 50 countries. The full list of Mexico`s 14 free trade agreements is available here. Given this reputation, it is easy to believe that free trade agreements make business in Mexico tariff-free. While this robust export platform offers many benefits to businesses, it requires vigilance, as agreements are often amended. For answers to all your questions about Mexico`s free trade agreements and how they can benefit your business, contact Tetakawi today. The comprehensive free trade agreement includes measures on market access, tariff quotas, anti-dumping and countervailing duties, rules of origin, customs procedures, dispute resolution, public procurement, protection of intellectual property rights, investments, safeguards, health and plant health provisions, technical rules and technical barriers to trade.
For companies wishing to produce in Mexico, one of the country`s greatest advantages is access to free trade. In this article, we will examine some of the country`s most important free trade agreements and explore what makes them so important to conduct a successful production activity in Mexico. The Countries of the European Free Trade Association (EFTA), consisting of Iceland, Liechtenstein, Norway and Switzerland, signed a free trade agreement with Mexico in November 2000. The agreement became enforceable in July 2001. In March 2000, Mexico and Israel signed a free trade agreement to increase bilateral trade by tens of millions of dollars. The agreement helps Israeli exporters compete with U.S. products in Mexico and promote joint projects in communication, agriculture, infrastructure and planning services. The free trade agreement covers trade in goods, public procurement, protection measures and dispute settlement, as well as enhanced cooperation between the two countries. In 2015, Mexico exported $23 billion worth of goods and services.
In particular, exports to Germany reached $6.83 billion in the same year, making it Mexico`s fourth largest export destination and second largest free trade region. Germany, along with Mexico, was one of the major G20 economies, which insisted on improving trade and diplomatic relations. The free trade agreement between Mexico and Colombia dates back to 1994, although the agreement was adapted and extended in the years that followed. The most recent version contains provisions relating to market access and rules of origin. Mexico and Uruguay began implementing their free trade agreement in July 2004, deepening an existing agreement. In addition to opening up trade markets, the free trade agreement includes provisions on services, investments, intellectual property rights, dispute settlement procedures, public procurement, rules of origin and customs procedures, among others. Documents on deepening the agreement A Free Trade Agreement (FTA) is an agreement involving two or more countries to reduce barriers to trade between the parties in import and export trade. Agreements may include easing or removing tariffs on goods and services transiting across regional borders,