Beyond North America: What other Mexican free trade agreements exist?
Recently, Mexico took an important step forward on the international trade stage with the finalization of a tri-lateral trade agreement. Under the United States, Mexico, and Canada (USMC) Accord it will continue to enjoy a duty-free trade relationship with its North American neighbors. Although this arrangement is an important one, there are other Mexican free trade agreements that make the country a strong global economic player. In total there are 12 Mexican free trade agreements that govern trade between it and 46 other nations. Additionally, Mexico has nine Reciprocal Agreements that have been made within the framework of the Latin American Integration Association (ALADI). The Latin American countries that make up ALADI are founding members Argentina, Bolivia, Brazil, Chile Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela. Cuba and Panama are also part of this group of Latin American nations.
What are the 12 Mexican Free Trade Agreements?
1. The recently signed United States, Mexico, Canada Free Trade Agreement. The document has yet to be ratified by the legislatures of the three signatory countries.
2 The free trade agreement between Mexico and Colombia was signed in 1994. The accord governs that trade in 94% of the two country’s industrial products as well as a Mexican free trade agreement that focuses on agricultural products.
3. In 1999 Mexico and Chile signed a free trade agreement which has thus far increased annual trade between the two countries by 17%.
4. The free trade agreement between Israel and Mexico went into effect in mid-2000. Since the signing of the trade accord, the volume of commerce between Israel and Mexico has increased by 157%.
5. The EU-Mexico trade agreement was signed and ratified in 2000, and governs free trade between Mexico and the twenty-eight members of the European Union.
6. Mexico entered into a free trade accord with the European Free Trade Association (Iceland, Liechtenstein, Norway, and Switzerland) in Mexico City on November 27, 2000.
7. A Mexican free trade agreement was entered into in 2004 with Uruguay. Now trade in industrial, fishery and agricultural products are exchanged on a duty-free basis.
8. The Japan-Mexico Free Trade Agreement was put into effect at the beginning of 2005. Japan is Mexico’s largest Asian trading partner.
9. In 2012 the Agreement of Commercial Integration between Mexico and Peru was signed. Since the trade treaty has been in effect, commerce between the two countries has grown at an average of 13% annually. Mexico sends mainly technology products to its southern partner, while Peru supplies Mexico with mostly agricultural products.
10. The free trade treaty between Mexico and the countries of Central America was signed in 2012. The countries of Costa Rica, El Salvador, Honduras, and Nicaragua represents approximately 20% of trade between Mexico and Latin America.
11. Since a free trade agreement between Panama and Mexico was signed in 2015. Commercial exchange between the two nations increased by approximately US $949 million since the signing of the accord.
12. Mexico is a member of the Progressive Agreement for Transpacific Partnership. The free trade is among eleven Pacific Rim nations. These include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.