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Undersecretariat for Foreign Trade April 1st, 2019

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Presentation on theme: "Undersecretariat for Foreign Trade April 1st, 2019"— Presentation transcript:

1 Undersecretariat for Foreign Trade April 1st, 2019
MEXICO’S TRADE POLICY Undersecretariat for Foreign Trade April 1st, 2019

2 Mexico-California Trade
NAFTA was instrumental in the consolidation of a solid trade and investment relation between Mexico and California. Bilateral trade between California and Mexico reached $74 billion in goods in 2018. Mexico is California’s largest export market. Throughout more than two decades, Mexico and California have cultivated a mutually beneficial partnership. The Cali-Baja Region perfectly illustrates how important Mexico is to California’s technology industry.

3 Mexico and San Diego surpassed $65 billion USD.
Mexico-San Diego Trade In 2018, trade between Mexico and San Diego surpassed $65 billion USD. Export: $40.6 billions Import: $24.9 billions

4 Trade between Mexico and San Diego benefits a variety of industries
EXPORTS IMPORTS Chapter % 85 Electric Machinery 32.8 87 Vehicles 20.5 90 Optic, Photo Instrments 11.0 84 Nuclear Reactors, Boilers, Machinery 6.2 98 Special Classification Provisions 3.6 07 Vegetables 3.0 94 Furniture 2.7 39 Plastics 2.5 08 Fruit & Nuts 2.1 88 Aircraft 1.8 Chapter % 85 Electric Machinery 23.3 84 Nuclear Reactors 13.0 39 Plastics and Articles 9.9 87 Vehicles 9.5 90 Optic, Photo 5.7 48 Paper & Articles 3.4 76 Aluminum and Articles 3.2 73 Articles of Iron or Steel 2.7 40 Rubber and Articles 1.9 44 Wood and Articles 1.5

5 Foreign Trade Policy Pillars
Inclusion Innovation Diversification 1 2 3

6 Strengthening the Multilateral Trading System
“This is a once-in-a-generation opportunity to renew the trading system" - Roberto Acevedo (December 5th, 2018, Washington DC) WTO crisis US interference on the selection of judges for the Appellate Body Claims from Developing and Least Developed Countries Little progress since the Doha Round Trade Facilitation Agreement (TFA) Complaints on the benefits for China in the current system In Mexico: It is in force since February 22nd, 2017. 100% implemented. Reduces world trade costs by 14.3%. Simplifies import and export procedures.

7 FTAs Network: Cifras al 10 de enero de 2014
Strengthening Mexico’s FTA Network FTAs Network: 13 FTAs ​​in force (81% trade of Mexico worldwide) preferential access to 52 countries (including CPTPP) 60% World GDP | 59% global trade 1.3 billion potential consumers Verification process of the Spanish /French translations of USMCA Colombia nineteen ninety five Chile 1999 Israel 2000 European Union Iceland, Liechtenstein, Norway, Switzerland 2001 Uruguay 2004 Japan 2005 Peru 2012 Central America 2013 Pacific Alliance CPTPP Panama 1994 2015 2016 2018 Legal scrubbing process TLCUEM NAFTA USMCA Agreements: 13 free trade |31 investment | 6 Economic Complementation | two partial scope. Cifras al 10 de enero de 2014

8 USMCA Mexico-EU FTA Pending Issues for Ratifications
Labor Reform: Annex 23-A ITC report: April 19, 2019 Elections in Canada - October 2019 Mexico-EU FTA Conclude legal review Signature Ratification by the European Parliament, national legislatures and the Mexican Senate.

9 MX consolidation as an export power and investment destination
Market diversification: Priorities MX consolidation as an export power and investment destination South Korea Japan China OTRAS NEGOCIACIONES PENDIENTES India STRATEGIC AGENDA Ecuador Economic Complementation Agreement No. 55 (Automotive) Brazil Argentina

10 Bilateral WTO Trade irritants Section 232 – Steel and aluminum Tomato
Structural Steel WTO Section 232 – USA. Avocado – Costa Rica

11 Thank you


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