Mexico Free Trade Agreements Countries
Mexico Free Trade Agreements: What Countries Does Mexico Have Free Trade Agreements With?
Mexico has been a major player in the world economy for many years. With a population of over 126 million and a strong manufacturing sector, Mexico has become an attractive destination for foreign investment. One of the key factors driving this growth is Mexico`s network of free trade agreements (FTAs). These agreements allow Mexican companies to access new markets, increase exports, and create jobs. In this article, we will take a closer look at the countries that have free trade agreements with Mexico.
United States
The United States is Mexico`s largest trading partner by far. The two countries share a long border and have integrated economies. The North American Free Trade Agreement (NAFTA) was signed in 1994, creating a trilateral trade bloc between the US, Mexico, and Canada. In 2020, the US-Mexico-Canada Agreement (USMCA) replaced NAFTA, bringing updates to labor and environmental standards, as well as modernizing rules around intellectual property and digital trade.
Canada
Canada is Mexico`s third-largest trading partner, after China. The two countries share a similar time zone and language, making it easier for businesses to communicate and collaborate. The Canada-Mexico Free Trade Agreement (CMFTA) was signed in 1994, alongside NAFTA. With the arrival of USMCA, CMFTA remains in effect, offering duty-free access to Canadian companies exporting to Mexico.
European Union
Mexico and the European Union (EU) signed an FTA in 2000, aimed at increasing trade and investment between the two regions. The agreement removed tariffs on a wide range of goods and services, making it easier for companies to do business. Since then, Mexico has signed additional agreements with individual European countries, including Spain (2018) and the United Kingdom (2019).
Japan
The FTA between Mexico and Japan was signed in 2004, with the aim of increasing trade and investment. The agreement eliminates tariffs on a range of products, including automobiles, electronics, and agricultural goods. In 2019, Japan accounted for 4.4% of Mexico`s total exports.
Chile
Mexico signed an FTA with Chile in 1999, creating a comprehensive trade agreement between the two countries. The agreement includes provisions for eliminating tariffs on many goods and services, as well as creating opportunities for investment and collaboration.
Other Countries
Mexico has signed free trade agreements with a number of other countries, including Israel, Panama, Peru, Uruguay, and Colombia. Additionally, Mexico is engaged in ongoing negotiations to expand trade agreements with other countries in Latin America, as well as Asia and the Pacific region.
Conclusion
Mexico`s network of free trade agreements is a key factor in the country`s continued economic growth. These agreements provide Mexican companies with access to new markets, increased exports, and job creation. By promoting free trade and collaboration with other countries, Mexico is positioning itself as an attractive destination for foreign investment and business growth.