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INTRODUCTION

On this evidence we have the Mexicos


treatments with differences countries in
some continents like America (in the United
States as North America and South
America), Europe and Asia, also we see
some advantages and disadvantages of
each one.

Europe
1. Name of the FTA: MEXICO-EUROPEAN FREE TRADE ASSOCIATION
FTA
Formed by: Mexico, Iceland, Lichtenstein, Norway and Switzerland
History:
Mexico and the European Free Trade Association (EFTA), composed of
Iceland, Lichtenstein, Norway, and Switzerland, signed a free trade
agreement on November 27, 2000. The agreement entered into force
on July 1, 2001. This was the first FTA that the EFTA had concluded
with an overseas partner country. Since the agreement entered into
force, Mexico and the EFTA have met at least four times to explore
possibilities of further trade integration, including agricultural and
services trade
Advantages:
Tariff reduction
Internationally renowned for Mexico
Trade
Increased trade and economic activity
Disadvantage:
The treat comes to deepen the economic, social, environmental
and cultural inequalities that hit Mexico in NAFTA
Mexico does not export enough
The types of political systems between countries is an
impediment to do some business

2. Name of the FTA: MEXICO-EUROPEAN UNION FTA


Formed by: Mexico and European Union
History:
Negotiations for a free trade agreement between Mexico and the
European Union (EU) began in October 1996. The agreement, formally
called the Economic Partnership Political Coordination and Cooperation
Agreement (also known as the Global Agreement), was signed in
March 2000 and came into force on July 1, 2000. It was the first
transatlantic FTA for the EU. The motivations for the agreement were
to expand market access for exports from the EU to Mexico and
attract more FDI from the EU to Mexico. On May 17, 2008, Mexico and
the European Union agreed on a strategic association to further
advance trade liberalization and to address climate change issues.

Advantages:
Tariff reduction
Internationally renowned for Mexico
Trade
Increased trade and economic activity
Attract inputs and technology for Mexican companies
Create jobs
Disadvantage:
The differences between the normative Mexicos structure and
the European union have limited the placement of domestic
products in the European union
Exports Mexico old rants just a third of what matters
Trade imbalance between the EU and Mexico
Asia
3. Name of the FTA: MEXICO-ISRAEL FTA
Formed by: Mexico and Israel
History:
After two years of negotiations, Mexico and Israel signed a free trade
agreement on April 10, 2000 and implemented it on July 1, 2000. The
agreement immediately eliminated tariffs on most products traded
between Mexico and Israel at the time of the agreement with full tariff
elimination scheduled by 2005. Policymakers expected the agreement
to provide Mexico with more export access to the Israeli market,
increased FDI from Israel to Mexico, and result in increased technology
transfer from Israel to Mexico
Advantages:
The large size of the market for Israel
Complementarily of bilateral trade
Opportunity to encourage greater flows of trade and investment
not only that country, but with other common trade partners
such as the US, Canada and the European Union Opportunity to
attract FDI from Israel
Disadvantage:
Mexico has not taken the treat with Israel as there are many
things which Israel referred to Mexico to make better business

and Mexico has


opportunities.

missed

great

business

and

great

4. Name of the FTA: MEXICO-JAPAN FTA


Formed by: Mexico and Japan
History:
Mexico and Japan signed a free trade agreement, the Economic
Partnership Agreement (EPA) in September 2004. The EPA was Japans
second free trade agreement, and its most comprehensive bilateral
agreement at that time. It was Japans first agreement to liberalize
trade in agricultural products, a factor that resulted in initial
opposition in Japan. In addition to the removal of tariff barriers, it
includes regulations in other areas, including labor mobility and
investment 31. Since the signing of the EPA in 2004, Japan and Mexico
further liberalized bilateral trade by entering into negotiations and
agreeing to strengthen the EPA. After two and a half years of talks, the
countries announced an agreement to revise the EPA and signed the
new agreement on September 23, 2011.
Advantages:
Japan gave a lot of revenue in the agri-food area almost twice as
NAFTA
Mexico can give many fruits for their great Mexican food
property.
Disadvantage:

Japan has many droughts and is very difficult to plant so


imported.

South America
5. Name of the FTA: The Mexico-Costa Rica FTA
Formed by: Mexico and Costa Rica
History:
The Mexico-Costa Rica FTA was signed on April 5, 1994, in Mexico City
and entered into force on January 1, 1995. This agreement had been
preceded by a partial scope agreement signed by the two countries on
July 22, 1982 in which Mexico accorded preferential access to some
Costa Rican products. The FTA with Costa Rica phased out tariffs in
four stages over a fifteen-year time period. Upon implementation of
the agreement, approximately 70% of Mexican goods entered Costa
Rica and 80% of Costa Rican goods entered Mexico duty free.
Advantages:
The FTA helps the economy and can help to have more FTAs
with others countries
Disadvantage:
The country of Costa Rica does not have a lot population and
this is a disadvantage because you cant sell in a large mass.
6. Name of the FTA: Name of the FTA: Mexico Northern Triangle
FTA
Formed by: Mexico, El Salvador, Guatemala and Honduras
History:
Mexico and El Salvador, Guatemala, and Honduras signed a free trade
agreement on June 29, 2000. The agreement is commonly referred to
as the Mexico-Northern Triangle FTA though the WTO has it listed as
three separate agreements between Mexico and El Salvador,
Guatemala, and Honduras. The agreements with El Salvador and
Guatemala entered into force on March 15, 2001, while the agreement
with Honduras entered into force on June 1, 2001. Negotiations for the
FTA with all three countries began in 1992, stalled for four years, and
resumed at the second Tuxtla Summit in 1996. Negotiations ended on
May 10, 2000. This agreement was the final of Mexicos NAFTA-type
agreements with all Central American countries. Prior to the
conclusion of the Mexico-Northern Triangle FTA, Mexico had held
separate partial scope agreements with each of the three countries,
granting some products preferential access to the Mexican market.
This agreement is one of the three FTAs that Mexico has with Central
America that will be converted into one Mexico-Central America FTA.

Advantages:

Proximity between countries


Treated with 3 countries of Latin America which increase in
number of things that we can export
Will open new economic opportunities

Disadvantage:
Countries with which the treaty is not very developed countries
These countries are not very safe (there is a high drug
trafficking)
These countries are not very populated
Name of the FTA: THE MEXICO-NICARAGUA FTA
Formed by: Mexico and Nicaragua
History:
The FTA with Nicaragua was Mexicos second treaty with a country in
Central America, also loosely based on the NAFTA model. It was signed
on December 18, 1997, and entered into force on July 1, 1998. Mexico
and Nicaragua have since signed a new multilateral treaty that will
replace the existing FTA once the new agreement enters into force
Advantages:
The FTA includes provisions on national treatment and market
access for goods and services.
Disadvantage:
It does not
transportation

include

policy,

environmental,

labor,

or

7. Name of the FTA: THE MEXICO-CHILE FTA


Formed by: Mexico and Chile
History:
The Mexico-Chile FTA, completed in 1998, was enacted in Chile on July
7, 1999, and in Mexico on August 1, 1999. Mexico and Chile signed the
expanded FTA at the 1998 Summit of the Americas in Santiago, Chile

on April 17, 1998. The FTA was expected to deepen the growing trade
relationship between the two countries and improve bilateral
investment opportunities in both countries. The 1998 agreement
replaced an earlier FTA that was reached between the two countries in
1991
Advantages:
It is a step towards developing a market economy
Opens the country to import and export products with a
minimum tax rate at Customs
Free competition that is generated in a country, the more
options for the same product choice, quality and price, low input
costs, etc.
Disadvantage:
Mexico will not produce a "product" of the same quality as
imported one, also you can see damaged the national economy
unprotected to domestic producers, the national economy
becomes dependent on economic fluctuations in that country
with which the treaty was performed, etc.
8. Name of the FTA: MEXICO-URUGUAY FTA
Formed by: Mexico and Uruguay
History:
On November 15, 2003, the presidents of Mexico and Uruguay signed
the Mexico-Uruguay free trade agreement. The agreement entered
into force on July 15, 2004. In addition to market opening measures,
the Mexico-Uruguay FTA includes chapters on services trade,
investment, intellectual property rights, dispute resolution procedures,
government procurement, rules of origin, customs procedures,
technical measures, sanitary measures, and safeguard provisions.
Advantages:
Uruguay needs some raw materials such as fruit Mexico bakery
products non-alcoholic beverages, fish red crab, and footwear
Disadvantage:
Uruguay has little population which is not a big market

9. Name of the FTA: MEXICO-COLOMBIA FTA


Formed by: Mexico and Colombia
History:

Colombia, Mexico, and Venezuela signed a free trade agreement on


June 13, 1994. The trilateral agreement entered into force on January
1, 1995. In May 2006, Venezuela notified its partners its intent to
withdraw from the agreement and by November 2006, Venezuela had
officially withdrawn. The agreement between Mexico and Colombia
remained in effect. The two countries have since expanded their
agreement and further liberalized trade. Negotiations for the
expanded bilateral trade agreement began in August 2009 and were
concluded in 2011

Advantages:
Medellin has become a better city to do business
Increased multinational investment opportunities
Large markets allow the use of economies of scales
There is potential for investment by Mexican companies in
Colombia
Disadvantage:
Medellin has little investment in technology and research new
industrial production would affect the country

10. Name of the FTA: Mexico-Peru FTA


Formed by: Mexico and Peru
History:
In December 2005, Mexico and Peru began negotiations to broaden
and deepen the Economic Cooperation Agreement (ECA) that had
been in place since 1987. The two countries negotiated to deepen the
trade relationship by liberalizing trade in all goods and form a free
trade agreement. After six years, Mexico and Peru reached concluded
negotiations and signed the free trade agreement, formally named the
Mexico-Peru Trade Integration Agreement, on April 6, 2011. The
Mexico-Peru FTA entered into force on February 1, 2012.

Advantages:
There are no tariffs in Peru
Peru is one of the 5 countries of Mercosur FTA and we can get
some FTA with any of these countries

Disadvantage:
Peru has a good population to sell products the problem is that
not everyone has the purchasing power to buy everything so
thats why can be a disadvantage.

North America.
11. Name of the FTA: North America Free Trade Agreement
(NAFTA)
Formed by: Canada, United States and Mexico
History:
In 1991 United States, Canada and Mxico aimed at establish a North
American Free Agreement and this agreement became law in January
1, 1994 Abolition within 10 years of tariffs on 99 percent of the goods.
Removal of most barriers to the cross-border flow of services, allowing
financial institutions.
Protection of the intellectual property rights.
Removal of most restriction of foreign direct investment between the
three members.
Application of the national environmental standards, provided such
standards have a scientific basis.
Establishment of two commissions whit the power to impose fines
and remove trade privileges when environmental standards or
legislation involving health and safely, minimum wages, or child labor
are ignored.
Advantages:
NAFTA may increase economic efficiency if trade creation
exceeds trade diversion.
The wide trade TLC and promotes efficiency, the real income of
the population increases. If this is dynamic, the benefit will be
through higher economic growth rates that will reduce absolute
poverty by generating a rising per capita income.
The largest trade and investment flows exploit the comparative
advantage of Mexico in intensive labor processes, increasing
the real value of wages throughout the economy

Disadvantage:
Increased tariffs that do not benefit our exports.
The FTA has not strengthened the Mexican sovereignty, the
Mexican people enmity with the US hidden costs.
No economic benefits for our country
Rules that do not take into account

Conclusion
On this activity we saw a brief history of
each of the treatments and advantages
and disadvantages of each one also we
describe which of them do not work a lot.
We describe how this could be more as a luxury
than a necessity product that they are selling.

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