Japan Mexico Free Trade Agreement
April 10th, 2021
April 10th, 2021
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. Mexico`s high-level free trade agreements are bilateral (two country partnerships) and multilateral (three or more) and include NAFTA, the EU, Japan, the Pacific Alliance (G3) and Central America. As trade develops between nations, renegotiation or withdrawal of certain conditions is commonplace. Many of Mexico`s most important free trade agreements have been revised, renegotiated and withdrawn, creating a stronger and more beneficial agreement for all partner countries. On 5 June 2001, the President of Mexico and the Japanese Prime Minister established a bilateral commission composed of academics and members of the public and private sectors. The Japan-Mexico Joint Task Force on Strengthening Bilateral Economic Relations examines and studies measures to strengthen Japan-Mexico trade and investment relations and to explore the appropriateness of a free trade agreement between the two countries. The meetings were held seven times. A new version of NAFTA, called USMCA (the U.S.-Mexico-Canada agreement), is expected to come into effect on July 1, 2020.
After nearly three years of negotiations, each nation is working to meet each country`s specific requirements in order to meet the implementation deadline. This “new NAFTA” contains some remarkable updates from the previous agreement, including: free trade agreements allow countries access to different markets and promote global competition. More importantly, free trade agreements can increase a country`s GDP and promote trade opportunities and incentives for attractive costs for companies wishing to start their business. For companies that want to produce in a foreign company like Mexico, free trade agreements offer many advantages. These include removing barriers to trade and ensuring close cooperation between nations on trade in goods and services. 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. On the other hand, uniform tariffs apply to countries that are not members of a free trade agreement but still trade – trade between China and the United States is a good example. A third-party source sets these rights, usually the World Trade Organization (WTO), and applies on a case-by-case basis. In the years that followed, Colombia and Mexico adapted and expanded the agreement, with additional provisions on market access and rules of origin. As Mexico`s largest exporter, Colombia accounts for more than $3 billion in exports each year.
Following the collapse of the World Trade ORGANIZATION (WTO) Ministerial Conference in Cancun, the lack of progress on the Doha Agenda and the relative explosion of bilateral free trade agreements negotiated around the world, Japan has reviewed its trade strategies and policies and has for the first time expressed its intention to pursue bilateral and multilateral trade agreements.