Countries with Which Mexico Maintains Trade Relations 

Did you know that Mexico is the second-largest country in Latin America in terms of trade opportunities, only behind Brazil? 

This fact not only reflects its economic potential but also highlights the opportunities available for businesses looking to expand their horizons. 

However, without a solid strategy and a clear understanding of trade dynamics, it’s easy to fall into the trap of tariff barriers or complex regulations. 

Imagine losing a valuable contract simply because you were unaware of specific export requirements for a key country—or worse, facing sanctions due to unintentional non-compliance with regulations. 

These situations don’t just impact your financial results; they can also damage your market reputation, making you lose the trust of clients and business partners. 

Fortunately, there’s a solution. With a personalized approach and a team of foreign trade experts, KENSA Logistics provides the guidance your business needs—not only to adapt but to thrive in today's global market. 

So, if you’re interested in maximizing Mexico’s trade relationships with other countries, we invite you to keep reading. 

Which Countries Have Trade Relations with Mexico? 

Thanks to its strategic location and continuously growing economy, Mexico has established trade ties with several countries worldwide: 

United States and Canada 

Mexico's trade relationship with the U.S. and Canada is one of the most significant globally, based on the United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA. 

This modernized agreement, implemented in 2020, introduced updated regulations on digital trade, intellectual property, labor rights, and environmental protections. 

In concrete terms, over 80% of Mexico’s exports go to these two countries, with the automotive, manufacturing, and agribusiness sectors being the most benefited. 

European Union 

The Mexico-European Union Free Trade Agreement (TLCUEM) has transformed relations between the two partners since its implementation in 2000. 

Twenty years later, both parties modernized the agreement to include new chapters on sustainability, digital trade, energy, and small and medium-sized enterprises (SMEs). 

Thanks to this, the European Union has become Mexico’s third-largest trade partner, granting businesses access to a high-demand market with strict quality and production standards. 

Asia-Pacific 

Through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Mexico has access to 10 Asia-Pacific economies, including Japan, Singapore, Vietnam, and Australia. 

These markets represent high-growth opportunities for Mexican products with strong international demand. For example, exports of avocados, tequila, and fresh meats have surged, as the CPTPP reduces tariff barriers and facilitates compliance with local regulations. 

Latin America and the Caribbean 

Mexico’s trade relationship with Latin America and the Caribbean is multifaceted. One of the key agreements is the Pacific Alliance, which includes Chile, Colombia, and Peru. This alliance promotes greater economic and trade integration, making it an essential platform for exports with tariff advantages. 

Through this bloc, Mexican companies can export agricultural products, processed foods, technology, and IT services at competitive prices. 

Middle East and Africa 

Although trade relations with these regions are still developing, they present significant opportunities for businesses looking to diversify their markets. 

In recent years, Mexico has signed cooperation agreements with Turkey, Saudi Arabia, and Egypt, among others, focusing on mining, energy, infrastructure, and technology sectors. 

Mexico's interest in these regions is centered on establishing trade channels for agricultural products, machinery, and technology, which are well-received by local consumers and growing industries. 

What Are Mexico’s 14 International Trade Agreements? 

Currently, Mexico has 14 international agreements that allow it to expand its presence in various markets:

United States-Mexico-Canada Agreement (USMCA)

As mentioned earlier, this alliance replaced NAFTA in 2020, consolidating North America as a region of significant trade exchange.

One of its main benefits is the elimination of trade barriers, facilitating the flow of goods and services among the three countries.

The USMCA also promotes innovation and sustainability through new regulations. As a result, higher standards have been implemented to protect the environment and labor rights.

Free Trade Agreement with the European Union (FTA EU-MX)

This strategic framework fosters trade and investment between both regions. It came into effect in 2000 and was modernized in 2020 to offer Mexican companies a series of advantages that enhance their growth in the European market.

For its part, the European Union (EU) is one of the largest economies in the world, with over 500 million consumers. This presents a unique opportunity for Mexican businesses looking to diversify and reach a broad audience.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

With markets like Japan, Australia, and Vietnam, the CPTPP fosters tariff-free trade on key products and opens new possibilities for Mexican exports.

Additionally, this alliance is not only focused on tariff reductions but also promotes higher standards in areas such as labor rights and environmental protection.

Free Trade Agreement with the European Free Trade Association (EFTA)

EFTA, which includes Switzerland, Norway, Iceland, and Liechtenstein, is a bloc that promotes free trade and economic cooperation between its members and other countries. This resolution was established to strengthen trade relations and facilitate the exchange of goods and services.

One of its main benefits is that Mexican companies can export their goods to EFTA countries without tariff burdens, allowing them to be more competitive in these markets.

Mexico-Japan Economic Partnership Agreement (AAEMJ)

Since its implementation in 2005, this treaty has eliminated tariff barriers, facilitating smoother trade.

For example, taxes on agricultural, manufactured, and technological products have been reduced. This means that Mexican companies have preferential access to a market that, in turn, seeks to diversify its supply sources.

Free Trade Agreement with Central America

This unified pact includes countries like Guatemala, Honduras, El Salvador, Costa Rica, and Nicaragua, facilitating trade in the region and fostering a closer relationship with these markets.

For companies that heavily rely on the U.S. market, the agreement with Central America represents a valuable diversification strategy that helps mitigate risks and better adapt to global economic fluctuations.

Free Trade Agreement with Panama

Although on a smaller scale, this pact offers opportunities in a dynamic market with strategic logistical possibilities, such as proximity to the Panama Canal.

Its goal is to foster a favorable environment for trade and investment by eliminating tariff barriers and facilitating market access. Additionally, the agreement establishes investment protection mechanisms, providing a safer framework for businesses operating in the country.

Free Trade Agreement with Colombia

This agreement is part of the commercial commitments both countries have developed to establish a platform that strengthens economic ties and encourages the exchange of goods and services.

It was signed in 1994 within a broader regional integration context, establishing a framework that facilitates access to a market of over 130 million consumers. This is attractive for Mexican companies looking to diversify their exports.

Additionally, Colombia's strategic location in the Andean region, with access to the Pacific Ocean and the Caribbean Sea, positions it as a gateway to other South American markets.

Free Trade Agreement with Chile

Since 1999, it has become a pillar for strengthening relations between both countries. Not only has it promoted an economic cooperation framework, but it has also facilitated trade exchange and opened opportunities for companies in various industries.

With Chile’s emerging environment, characterized by political and economic stability, Mexico has found a strategic partner to diversify its exports and leverage competitive advantages.

Free Trade Agreement with Peru

To date, it has facilitated the exchange of goods and services under a regulatory framework that promotes investment and growth.

This means that Mexican companies can export to Peru at significantly reduced costs, making them more competitive in this market. Sectors such as food, beverages, textiles, and machinery benefit from these conditions, making it easier to reach a more demanding Peruvian consumer base.

Free Trade Agreement with Israel

The FTA between Mexico and Israel is part of Mexico's market diversification policy, aiming to reduce dependence on traditional economies.

By eliminating tariffs and simplifying customs procedures, the treaty enables Mexican companies to access a highly advanced and constantly growing market.

Free Trade Agreement with Uruguay

Uruguay's geographic location, along with its commitment to free trade, offers a gateway to the Southern Cone market, which includes nations such as Argentina, Brazil, and Chile.

One of the main benefits of this FTA is the gradual elimination of tariffs on mutually significant products. This allows Mexican goods to enter without significant cost burdens, improving competitiveness.

Trade Continuity Agreement between Mexico and the United Kingdom (TCA)

Implemented on June 1, 2021, as a measure to ensure uninterrupted trade relations between both countries following the United Kingdom’s exit from the European Union (Brexit).

The TCA was designed to largely replicate the Free Trade Agreement between Mexico and the European Union (FTA EU-MX), signed in 2000. This means it maintains the preferential trade regime that existed while the UK was an EU member.

Economic Partnership Agreement between South Korea and Mexico

This agreement seeks to boost trade and investment between both countries. It was signed on July 1, 2000, and establishes a schedule for the gradual elimination of tariffs on industrial and agricultural products, facilitating the access of Mexican products to the South Korean market and vice versa.

Conclusion 



Each free trade agreement and economic partnership not only offers opportunities for Mexico to diversify its markets but also serves as a bridge for long-term expansion and growth. 

These agreements allow businesses to access new consumers, benefit from preferential tariffs, and operate in more favorable regulatory environments. 

As you can see, trade relations go beyond simple transactions—they build alliances, drive innovation, and create jobs. 

If your business is looking to explore new opportunities or expand its reach, KENSA Logistics is the ideal partner to guide you along the way. 

We have a team of foreign trade specialists dedicated to helping you identify opportunities across the globe. 

Contact us today—because the future of your business starts now.