Mexico Panama Free Trade Agreement

Organization of the United States, Foreign Trade Information System, Information on Mexico, accessed April 5, 2017 www.sice.oas.org/ctyindex/MEX/MEXagreements_e.asp. When the Bolivian government adopted a new constitution in February 2009, it found that some chapters of the free trade agreement were incompatible under the new constitution and that the treaty needed to be renegotiated with Mexico. The Government found that the FTA`s chapters were unconstitutional with respect to investment, trade in services, intellectual property rights and government procurement. The 2010 European Free Trade Court, which replaced the 1995 Free Trade Agreement, maintained free trade in goods without changing the preferential tariff treatment agreed in the previous free trade agreement.42 On November 15, 2003, the Presidents of Mexico and Uruguay signed the Mexico-Uruguayan Free Trade Agreement. The agreement entered into force on 15 July 2004. In addition to market-opening measures, the Free Trade Agreement between Mexico and Uruguay includes chapters on trade in services, investment, intellectual property rights, dispute settlement process, government procurement, rules of origin, customs procedures, technical measures, sanitary and phytosanitary measures, and protective measures. Since its entry into force, the agreement has eliminated virtually all tariffs on most industrial products, with a few exceptions. Tariffs on footwear will be gradually reduced over a ten-year period. Woolly products are subject to tariff quotas and automotive products are covered by a separate economic complement agreement. In the agricultural sector, Uruguay has reduced 240 tariff lines for products imported from Mexico. Sensitive products such as maize, beans, poultry and other meat products were excluded from the agreement. Tariffs on beef products have been reduced from 10% to 7% over a three-year period21.21 The draft law ratifying a trade agreement with Mexico excludes sensitive agricultural and agro-industrial products in Panama.

such as chicken meat, eggs, dairy products, pork, pork sausage, coffee, wheat flour, rice, palm oil, sauces, tomato paste, potatoes, onions, sugar, juice, fruit drinks, plastic soda products, paper and aluminum. Over the past 10 years, trade between Mexico and Panama has nearly doubled, adding $1.009 million in 2014, becoming Mexico`s fourth-largest trading partner in Central America and the twelfth in Latin America and the Caribbean. In addition, Panama is the second largest Latin American investor in Mexico after Brazil, with a total of $1.035 million between 1999 and 2014. According to the Mexican Ministry of Economy, total trade between Mexico and Panama in 2013 amounted to just over a billion dollars, including a large part of Mexican exports. The 1998 Free Trade Agreement between Mexico and Chile entered into force on 7 July 1999 in Chile and on 1 August 1999 in Mexico. Mexico and Chile signed the agreement at the 1998 US summit in Santiago, Chile, on 17 April 1998. The free trade agreement is expected to strengthen the growing trade relationship between the two countries and improve bilateral investment opportunities in both countries. The 1998 agreement replaced a previous free trade agreement concluded between the two countries in 1991.

Tariffs on almost all merchandise trade between the two countries have been eliminated. Mexico`s dependence on the United States as a trading partner has remained relatively unreaward over the years, despite its efforts to diversify trade (see Chart 3). The share of total exports to the United States decreased slightly between 1996 and 2016, from 83% to 81%. In 2016, 93% of Mexican exports were directed to countries with which it has free trade agreements. Exports to NAFTA countries accounted for 84% of total exports, while exports to the European Union accounted for only 5%. . . .