Mexico’s main trade agreements in 2023  
 

 
Mexico is characterized by being one of the most open economies in Latin America and the entire world as it has entered into trade agreements with over 46 countries.  

This is precisely why it is consolidated as a reference for the development of other regions, helping businesspeople with tariff preferences, in accordance with the agreement they have signed.  

What are international trade agreements?

The Mexican government defines a trade agreement as “an agreement that places two or more countries under the umbrella of international law, with the aim to improve relations in terms of economy and exchange”.  

The agreement can be bilateral or multilateral, but always includes the reduction or elimination of tariff and non-tariff barriers, such as import quotas, sanitary and phytosanitary matters or technical barriers to trade.  

A free trade agreement (FTA), on the other hand, lays down the rules and guidelines for the exchange of products and services, avoiding obstacles such as taxes or fees on imports and exports. The idea is to consolidate markets for each country`s national products, by putting forward competitive offers.  

According to the State of Mexico, the agreements are designed with the purpose of promoting the flows of international investment and providing certainty for operations carried out by foreign businesspeople.  

Which are Mexico’s most important trade agreements?

Currently, Mexico has 14 international trade agreements with 46 countries, 32 agreements for promotion and reciprocal protection of investment, with 33 countries, 9 limited scope agreements within the framework of the Latin American Association of Integration (ALADI) in addition to being a member of the Transpacific Partnership.  

Although all the agreements are of great value for our country, some are more important, either because they have been signed with more than one country or because of their implications. These include:  

• United States – Mexico -Canada Free Trade Agreement. It is the most well-known and very important for Mexico because the trade agreement with the countries of North America is fundamental for technological and economic growth. 

In 2020, the convention replaced the North American Free Trade Agreement (NAFTA) which entered into force in 1994. The novelties included more rigor in verifying the origin of the textile, chemical and automotive industries.  

Also included was a chapter on digital trade, whereby no customs duties are imposed on digital products, and cooperation is made available for key aspects of cybersecurity.  

•  Mexico-European Union Free Trade Agreement (FTA Mexico EU). The trade agreement has been in force since July 2000 with Germany, Austria, Belgium, Denmark, Spain, Finland, France, Greece, Holland, Ireland, Italy, Luxembourg, Portugal, Sweden, Cyprus, Slovenia, Malta, Czech Republic, Hungary, Poland, Estonia, Slovakia, Latvia and Lithuania taking part.  

It seeks to promote trade between Mexico and the countries of the European Union, and lay down the legal framework for economic relations in both blocks.  

Among the FTA Mexico EU’s aims is the removal of tariffs for most products and the protection of intellectual property, competition, transparency and economic cooperation.  

• Free Trade Agreement Mexico – European Free Trade Association (EFTA). The agreement was signed in 2001 by four European countries: Iceland, Liechtenstein, Norway and Switzerland with the aim to strengthen the relation in political and economic terms. 
• Free Trade Agreement Mexico - Israel. It was signed in 2000 for the purpose of intensifying trade and the economy through the relaxation of levies and restrictions on imports from both countries.  
• Free Trade Agreement Mexico - Uruguay. Its aim is regional economic integration and the creation of a wider and safer market for the goods and services in their respective territories.  
• Free Trade Agreement Mexico - Panama. It was signed on 3 April 2014 and entered into force in July 2015.  

This agreement works on the country’s economic integration with Central America, and helps reinforce legal security in international transactions while consolidating new markets for Mexican exports.  

• Another of the important agreements is the FTA with Central America, signed in 2011 between Mexico and Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.  

The signing led to an agreement with improved conditions and a balance between trade commitments, the expansion of world trade and international cooperation.  

• There is also the relation between Mexico, Peru, Colombia and Chile by means of the so-called Pacific Partnership, with thirty-two observer countries.  

The four nations account for 38 % of Latin American and Caribbean GDP, so the cooperation is highly beneficial. In 2010 alone, this group exported to the value of almost 445,000 million dollars.  

• Also in force is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).  

It was signed by eleven Pacific nations, namely, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam, with some Asian and American regions.  

This group of countries accounts for over 14.9 % of world trade, as well as 13.5 % of the GDP. This is why Mexico holds an individual FTA with several countries. 

Benefits of Mexico’s trade agreements  

Mexico’s trade agreements are profitable for the economy, businesses and consumers alike.  

Mexico’s Ministry of Agriculture and Rural Development mentions just some of their benefits:  

• Reduction in costs for consumers, broadening the market for companies, increased competitiveness and job creation. 
• They help reduce the tariff barriers which can hinder the flow of goods and services.  
• They promote private investment. 
• They help improve the standards that protect intellectual property, e-commerce and employability.  
• They offer the businesses and consumers of a country different options for goods and services.  
• They foment the competitiveness of businesses by helping to develop innovative technologies and practices.  
• They strengthen regional economic integration.  
• They provide access to wider markets.  
• They drive competitiveness and access to a greater variety of products and services. 
• They support the removal of trade standards and barriers.  
• They promote the exchange of technology.  
• They inspire stability for long-stage investors, which likewise helps create jobs in the export industry.  

In themselves, Mexico’s trade agreements have had a significant impact on the economy and on relations with other countries.  

Though the agreements have been criticized and have met some challenges, in general, they have helped strengthen new trade and investment opportunities through negotiation.  

If you still have not explored the suitability of each agreement, from KENSA Logistics, we can help and advise you to make your product competitive for import or export.