Open Economy

On international trade, since Mexico signed the General Agreement on Tariffs and Trade (GATT), the country has been focused on diversifying its markets for its products and services, through the signing of many trade agreements with European, Asian and American economies, ranking as one of the most open countries to international trade in the world.

Mexico represents an entrance door to a market integrated by more than 60% of world’s GDP, with over a billion of potential consumers, gaining preferential access to the markets of 46 countries that includes the largest economies of the world, such as the United States, Canada, the 28 members of the European Union and Japan. Moreover, Mexico has also signed Economic Complementation Agreements (ECA) as well as Partial Scope Agreements (PSA).

Treaty / Agreement

  1. Entrance to GATT

  2. ECA 6 Mexico - Argentina

  3. North America FTA

  4. ECA Bolivia

    Entrance to WTO

    FTA G3

  5. PSA Ecuador

  6. FTA Chile

  7. European Union FTA

    FTA Israel

  8. ECA Cuba

    European Free Trade Association FTA

  9. ECA Brazil

    ECA 55 Mexico - Mercosur

  10. FTA Uruguay

  11. EPA Japan

  12. ECA Mercosur

  13. Pacific Alliance (Chile, Colombia & Peru)

  14. FTA Peru

  15. Single FTA Center América (El Salvador, Nicaragua, Honduras, Costa Rica & Guatemala)

  16. FTA Panama

FTA: Free Trade Agreement.
EFA: Economic Partnership Agreement.
ECA: Economic Complementation Agreement.
PSA: Partial Scope Agreement.

Source: Secretariat of Economy, International Monetary Fund, 2018.

Legal certainty for foreign investment

Signing Reciprocal Investment Promotion and Protection Agreements (RIPPAs) is part of a strategy established by the Mexican government to provide national and foreign investors a legal framework that offers stronger protection for foreign investment in Mexico and Mexican investment abroad.

In general, RIPPAs include the following topics: investment definition, scope of application, promotion and admission, investment treatment, expropriation, transfers and resolution of Investor-State and State-State controversies.

Mexico has signed 31 of these agreements.

RIPPAs signed by Mexico

  1. Switzerland

  2. Argentina

  3. Netherlands

  4. Denmark
    Finland
    France
    Portugal

  5. Germany
    Austria
    Sweden

  6. Korea
    Cuba
    Greece
    Italy
    Uruguay

  7. Belgium-Luxembourg

  8. Czech Republic

  9. Island
    Panama

  10. Australia
    United Kingdom
    Trinidad and Tobago

  11. Spain
    India

  12. Belarus
    China
    Slovak Republic

  13. Singapore

  14. Bahrain

  15. Kuwait

  16. Turkey

Source: Secretariat of Econoomy, 2018.

Some of the Free Trade Agreements (FTA) that Mexico has signed include a chapter on investment that is similar to a RIPPA; for example, the agreements signed with the USA, Canada, Chile, Colombia and Japan.

There has also been an effort to avoid equivalent taxation during the same period by two or more taxation authorities on the participants of the Mexican market, through the signing of Double Taxation Avoidance Agreements.

In this way, Mexico offers access to diverse markets, tariffs reductions, investment opportunities, legal transparency, intellectual property protection, and fair and attractive conditions for economic competition.