Mexico-Central American Free Trade Agreement

However, the agreement provides for a quota of non-customs duties for motor vehicles, which corresponds to 5% of cars, buses and trucks sold in Mexico the previous year, excluding large buses. As part of an updated 2011 agreement, Mexico agreed to accelerate the removal of import duties on auto parts between 2012 and 2014. 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. Mexico and Panama concluded a free trade agreement in July 2015 to strengthen bilateral relations, diversify exports, promote mutual trade and ultimately support economic growth and prosperity for both countries. The agreement also prepared the terms of Panama`s accession to the Pacific Alliance – which includes Mexico, Colombia, Chile and Peru – since all members must have free trade agreements. The CPTPP was signed in March 2018 and ratified by Mexico until December 2018. After ratification by all the countries concerned, the CPTPP will represent a trading bloc covering 495 million consumers and 13.5% of global GDP. The CPTPP completely eliminates tariffs in all sectors. Once all Member States have ratified the agreement, 99% of tariff lines will be exempt from tariffs among CPTPP participants. 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.

The alliance also integrates the four national stock markets, lifts visa restrictions between alliances and opens joint international trade missions. The Alliance prioritizes private sector cooperation as it promotes free trade, which helps to strengthen competitiveness and development. The first round of negotiations on the unification and convergence of existing free trade agreements between Central American countries and Mexico took place in Mexico City in May 2010. The second round took place in August in San Salvador City. The third round took place in Mexico City from September 27 to 30, 2010. The fourth round took place in Guatemala from 31 January to 4 February 2011 and the fifth round of negotiations took place in Mexico City in May 2011. The sixth round of negotiations took place from 15 to 19 August 2011 in San Salvador City, El Salvador. The seventh round took place from 19 to 23 September and the next meeting is scheduled for 27 and 28 September in Antigua, Guatemala. On 20 October 2011, the participating countries concluded technical negotiations on the convergence of the unitary free trade agreement between Central America and Mexico. The single free trade agreement was signed on 22 November 2011.

The agreement also facilitates the activity of EU companies in Mexico by simplifying customs procedures to streamline industrial trade and establishing a clause on the free flow of data and investment protection.