WORLD TRADE
ORGANIZATIONWT/REG109/3
27 August 2001
(01-4122)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN
THE EUROPEAN COMMUNITIES AND MEXICO
Communication from the Parties
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and Dates of Signature, Ratification and Entry into Force
Decision No. 2/2000 of the EC-Mexico Joint C ouncil establishing a free-trade area between
the European Community and the United Mexican States was adopted on 23 March 2000 in Lisbonand entered into force on 1 July 2000.
This Decision is based on the Interim Agreement on Trade and Trade-related Matters between
the European Community and the United Mexican States (hereinafter the Interim Agreement) signed
in Brussels on 8 December 1997 which was in force from 1 July 1998 to 1 October 2000.  The InterimAgreement ceased to exist on 1 October 2000 when the Economic Partnership, Political Co-ordination
and Co-operation Agreement (hereinafter: the Global Agreement) between the European Community
and its Member States, of the one part, and the United Mexican States, of the other part, also signed in
Brussels on 8 December 1997, entered into force.  Decision No. 2/2000 was then deemed to have
been adopted by the Joint Council of the Global Agreement.
2. Type of Agreement
Decision No. 2/2000 establishes a free-trade area over a transitional period lasting a
maximum of ten years starting from the date of its entry into force.
This Decision implements the objectives of the Interim Agreement and establishes the
necessary conditions for the gradual and reciprocal liberalisation of trade in goods; for the gradual and
mutual opening of the government procurement markets of the Parties; as well as establishing a
co-operation mechanism for competition matters, a consultation mechanism with respect to
intellectual property, and a dispute settlement mechanism.
3. Scope
Industrial, agricultural and fisheries products: Decision No. 2/2000 covers all chapters of the
Harmonised System (1-97).
4. Trade Data
Total bilateral trade in goods amounted to € 20.9bn in 2000 and averaged € 15.1bn over
1997-2000.  EC imports from Mexico in 2000 amounted to € 7.0bn whereas Mexican imports from
EC amounted to € 13.9bn. Products other than agricultural or fish and fisheries products constitute the
most substantial share of trade and represented 94.9 per cent of total bilateral trade in 2000 andWT/REG109/3
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93.8 per cent of total bilateral trade on average over the period 1997-2000 (see Annex for statistical
data).
II. TRADE PROVISIONS
1. Import Restrictions
1.1. Duties and charges
By the end of the transitional period, based on 1996-1998 trade volumes, in total 97.1 per cent
of total bilateral trade will receive duty free treatment, out of which 96.8 per cent of EC exports toMexico, and 97.6 per cent of Mexican exports to the EC.  In terms of bilateral trade, 1996-1998
figures, 100 per cent of industrial, 58.6 per cent of agricultural, and 99.4 per cent of fisheries trade
will be fully liberalised.
All charges on imports other than customs duties were eliminated as from the  entry into force
of Decision No. 2/2000.  Reductions in customs duties will not apply to specific duties resulting from
the application of the EC entry price systems.
1.1.1. Industrial products
A – EC tariff elimination on industrial products
All customs duties on industrial products will be eliminated at the latest by the end of a
transitional period of two and a half years endi ng on 1 January 2003.  Customs duties on the majority
of industrial products (listed in Category A of Annex I) were eliminated on the day of entry into forceof Decision No. 2/2000 (1 July 2000).  The duties on the remaining industrial products (listed in
Category B of Annex I) will be eliminated progressively in four equal stages starting on the day of
entry into force, continuing on the 1 January of successive years and ending on 1 January 2003.
B – Mexico’s tariff elimination on industrial productsAll customs duties on industrial products will be eliminated at the latest by the end of a
transitional period of six and a half years ending on 1 January 2007.  Customs duties on more than
half of these products were eliminated on 1 July 2000 or will be eliminated by 1 January 2003.
Customs duties on the remaining products will be eliminated in 2005 or 2007.
Products subject to elimination of customs duties at entry into force are listed in Category A
of Annex II.  Customs duties on products listed in Category B of Annex II will be progressively
eliminated in four equal stages starting on the day of entry into force and ending on 1 January 2003.
Customs duties on products listed in Category B+ and Category C of Annex II will be progressively
eliminated over a period starting on the day of entry into force and ending on 1 January 2005 and
1 January 2007 respectively, in accordance with the schedules established in Articles 6(3) andArticle 6(4) of Decision No. 2/2000, and/or in Annex II to that Decision, sections C and D.
1.1.2. Agricultural productsA – EC tariff elimination on agricultural productsAll customs duties on agricultural products will be eliminated at the latest by the end of a
transitional period of ten years ending on 1 July 2010 save those listed under Categories 5, 6, 7WT/REG109/3
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and "O" of Annex I, which will be subject to the conditions laid down in Decision No. 2/ 2000 and that
Annex.
Customs duties on agricultural products will be eliminated in accordance with the following
categories:
• Customs duties on agricultural products listed in Category 1 of Annex I were eliminated on
entry into force of Decision No. 2/2000.
• Customs duties on agricultural products listed in Category 2 of Annex I will be eliminated
progressively in four equal stages beginning on the entry into force, continuing on 1 July of
successive years and ending on 1 July 2003.
• Customs duties on agricultural products listed in Category 3 of Annex I will be eliminated
progressively in nine equal stages beginning on the entry into force, continuing on 1 July of
successive years and ending on 1 July 2008.
• Customs duties on agricultural products listed in Category 4 of Annex I will be eliminated
progressively in eight equal stages beginning three years after entry into force, continuing on 1January of successive years and ending on 1 July 2010.
• Customs duties on agricultural products listed in Category 4a of Annex I will be eliminated
progressively in ten equal stages beginning on the entry into force, continuing on 1 January ofsuccessive years and ending on 1 July 2009.
• Customs duties on products listed in Category 5 of Annex I will be applied in accordance with
the conditions set out in Article 10 of Decision No. 2/2000.  No tariff dismantling has been
foreseen for this category for which a review shall be held no later then three years after entryinto force of Decision No. 2/2000.
• For agricultural products listed in Category 6 of Annex I, the EC will apply duty free treatment
or reduced duty rates within tariff quotas as from  entry into force.  The tariff conditions and
tariff lines concerned are listed in Section A of Annex I.
• Customs duties on processed agricultural products listed in Category 7 of Annex I will be
applied in accordance with the conditions set out in that Annex.  The tariff conditions andtariff lines are listed in Annex I, section B.  The Joint Council may decide on the extension of
products listed under this category, as well as on the reduction of customs duties and the level
of the quotas.
• Finally, a number of products covered by protected denominations of origin and identified in
Category ´O´ of Annex I are not subject to tariff concessions.  These products shall bereviewed in accordance with Article 10 of Decision No. 2/2000.
In total, by the end of the transitional period, based on 1996-1998 trade figures, 80.7 per cent
of Mexican agricultural exports to the EU will receive duty free treatment.
B – Mexico’s tariff elimination on agricultural productsAll customs duties on agricultural products will be eliminated at the latest by the end of a
transitional period of ten years ending on 1 July 2010 save those listed under Categories 5, 6 and 7 ofAnnex II, which will be subject to the conditions laid down in Decision No. 2/2000 and that Annex.WT/REG109/3
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Customs duties on agricultural products will be eliminated in accordance with the following
categories:
• Customs duties on agricultural products listed in Category 1 of Annex II were eliminated on
entry into force of Decision No. 2/2000.
• Customs duties on agricultural products listed in Category 2 of Annex II will be eliminated
progressively in four equal stages beginning on the entry into force, continuing on 1 July of
successive years and ending on 1 July 2003.
• Customs duties on agricultural products listed in Category 3 of Annex II will be eliminated
progressively in nine equal stages beginning on the entry into force, continuing on 1 July of
successive years and ending on 1 July 2008.
• Customs duties on agricultural products listed in Category 4 of Annex II will be eliminated
progressively in eight equal stages beginning on three years after entry into force, continuingon 1 July of successive years and ending on 1 July 2010.
• Customs duties on agricultural products listed in Category 4a of Annex II will be eliminated
progressively in ten equal stages beginning on the entry into force, continuing on 1 July of
successive years and ending on 1 July 2009.
• Customs duties on products identified under Category 5 of Annex II will be applied in
accordance with the conditions set out in Article 10 of Decision No. 2/2000.  No tariff
dismantling has been foreseen for this category  for which a review shall be hold no later then
three years after entry into force of Decision No. 2/2000.
• Customs duties on processed agricultural products identified under Category 7 of Annex II
will be applied in accordance with the conditions set out in that Annex.  The tariff conditionsand tariff lines are listed in Annex II, section B.  The Joint Council may decide on the
extension of products listed under this category of Annex II, as well as on the reduction of
customs duties .
In total, by the end of the transitional period, based on 1996-1998 trade figures, 42.6 per cent
of EC agricultural exports to Mexico will receive duty free treatment.
1.1.3. Fisheries
A – EC tariff elimination on fisheries
All customs duties on fisheries products will be eliminated at the latest by the end of a
transitional period of ten years ending on 1 July 2010 save those listed in Category 5 and 6 of
Annex I, which will be subject to the conditions laid down in Decision No. 2/2000 and that Annex.
Customs duties on fishery products will be eliminated in accordance with the following
categories:
• Customs duties on products listed in Category 1 of Annex I were eliminated on entry into force
of Decision No. 2/2000.WT/REG109/3
Page 5
• Customs duties on products listed in Category 2 of Annex I will be eliminated progressively in
four equal stages beginning on the entry into force, continuing on 1 July of successive yearsand ending on 1 July 2003.
• Customs duties on products listed in Category 3 of Annex I will be eliminated progressively in
nine equal stages beginning on the entry into force, continuing on 1 July of successive years
and ending on 1 July 2008.
• Customs duties on products listed in Category 4 of Annex I will be eliminated progressively in
eight equal stages beginning on three years after entry into force, continuing on 1 July of
successive years and ending on 1 July 2010.
• Customs duties on products listed in Category 4a of Annex I will be eliminated progressively
in ten equal stages beginning on the entry into force, continuing on 1 July of successive years
and ending on 1 July 2009.
• Customs duties on products identified in Category 5 of Annex I will be applied in accordance
with the conditions set out in Article 10 of Decision No. 2/2000.  No tariff dismantling hasbeen foreseen for this Category.  The parties have agreed to review customs duties applicable
to these products no later than three years after entry into force and to consider further steps in
the process of liberalisation of bilateral trade.
• For certain fisheries products identified in Cate gory 6 of Annex I, the EC will apply reduced
duty rates within tariff quotas as from entry into force.  The tariff lines concerned are listed inSection A of Annex I (canned tuna).  For this Category, a review shall be hold no later then
three years after entry into force of Decision No. 2/2000.
In total, by the end of the transitional period, based on 1996-1998 trade figures, 100 per cent
of EC fisheries imports from Mexico will be totally free from customs duties.
B – Mexico tariff elimination on fisheriesAll customs duties on fisheries products will be eliminated at the latest by the end of a
transitional period of ten years ending on 1 July 2010, save those listed in Categories 5 and 6 of
Annex II, which will be subject to the conditions laid down in Decision No. 2/2000 and that Annex.
Customs duties on fishery products will be eliminated in accordance with the following
categories:
• Customs duties on products listed in Category 1 of Annex II were eliminated on entry into
force of Decision No. 2/2000.
• Customs duties on products listed in Category 2 of Annex II will be eliminated progressively
in four equal stages beginning on the entry into force, continuing on 1 July of successive years
and ending on 1 July 2003.
• Customs duties on products listed in Category 3 of Annex II will be eliminated progressively
in nine equal stages beginning on the entry into force, continuing on 1 July of successive years
and ending on 1 July 2008.WT/REG109/3
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• Customs duties on products listed in Category 4 of Annex II will be eliminated progressively
in eight equal stages beginning on three years after entry into force, continuing on 1 July ofsuccessive years and ending on 1 July 2010.
• Customs duties on products listed in Category 4a of Annex II will be eliminated progressively
in ten equal stages beginning on the entry into force, continuing on 1 July of successive years
and ending on 1 July 2009.
• Customs duties on products listed in Category 5 of Annex II will be applied in accordance with
the conditions set out in Article 10 of Decision No. 2/2000.  No tariff dismantling has been
foreseen for this Category.  The parties have agreed to review customs duties applicable to
these products no later than three years after entry into force and to consider further steps in
the process of liberalisation of bilateral trade.
• For certain fisheries products listed in Category 6 of Annex II the Mexico will apply reduced
duty rates within tariff quotas as from entry into force.  The tariff lines concerned and tariff
conditions are listed in Section A of Annex II (canned tuna).  For this Category, a review shall
be hold no later then three years after entry into force of the Decision.
In total, by the end of the transitional period, based on 1996-1998 trade figures, 88.7 per cent
of fisheries imports from the EC will be totally liberalised.
1.2. Quantitative restrictionsImport prohibitions or restrictions in trade between the EC and Mexico, other than customs
duties and taxes, were eliminated from entry into force of Decision No. 2/2000.  Mexico maymaintain certain measures, under the conditions se t out in Annex IV to Decision No. 2/2000.  These
relate to (temporary) measures or restrictions for certain petrochemical products, certain vehicles,
used clothes, and used vehicles.
1.3. Common external tariffDecision No. 2/2000 does not include any provision for the establishment of a common
external tariff.
2. Export Restrictions
Charges on exports other than customs duties were eliminated as from the entry into force of
Decision No. 2/2000.
Export prohibitions or restrictions in trade between the EC and Mexico, other than customs
duties and taxes, were eliminated from entry into force of Decision No. 2/2000.  Mexico may apply
certain restrictions to the granting of export licences for certain petrochemical products under the
conditions laid dawn in Annex IV (see Section II.1.2).
3. Rules of Origin
The definition of the concept of “originating products” and methods of administrative co-
operation between the Parties is set out in Annex III to Decision No. 2/2000.  This Annex and its
Appendixes are in compliance with Annex II of the Agreement on Rules of Origin of the WTO, in
particular, are based on a positive standard and clearly defined.WT/REG109/3
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Annex III establishes the general requirements to determine the originating status of a
product, as well as the necessary administrative procedures to claim preferential treatment, for
example, evidence of the originating status of products is furnished on the basis of a movement
certificate EUR.1 or an “invoice declaration” as provided for in Appendixes III and IV to Annex III.
Products are considered of Mexican or EC origin either if they are: wholly obtained;
manufactured exclusively from originating materials; or if they have been sufficiently worked or
processed.  Appendix II and II(A) to Annex III lis ts the different rules that apply for determining
whether a product has been sufficiently worked or processed.  While they differ from product to
product, the rules fall into several broad categories:
• The materials used must undergo a change of tariff classification under the Harmonised
System;
• Products are considered to be originating if sufficient value is added in the EC or Mexico.
Percentages involved may vary from product to product;  or
• For some products, the rule defines the production process to be followed.
These rules in some cases require a combination of the above conditions to be applied.  Also
for several products two alternative rules are given, only one of which has to be complied with to
obtain the originating status, and bilateral cumulation is foreseen.  Finally the tolerance value under
the Decision is 10 per cent.
4. Standards
4.1. Standards
Both Parties confirm their rights and obligations relating to standards, technical regulations
and conformity assessment procedures under the WTO Agreement on Technical Barriers to Trade.Furthermore, Decision No. 2/2000 provides for bilateral co-operation in this field in order to reduce
differences between the Parties, facilitate bilate ral trade, and increase mutual understanding and
awareness of their respective systems.  Specific areas of co-operation include information exchange
on standards, technical regulations and conformity assessment procedures;  bilateral consultations
concerning specific technical barriers to trade;  promoting the use of international standards, technicalregulations and conformity assessment procedures;  and the adoption of their respective standards,
technical regulations and conformity assessment procedures on the basis of international
requirements.
4.2. Sanitary and phytosanitary measuresBoth Parties confirm their rights and obligations under the WTO Agreement on the
Application of Sanitary and Phytosanitary Measures.  Furthermore, Decision No. 2/2000 provides for
bilateral co-operation in the area of sanitary and phytosanitary measures with the objective of
facilitating trade.  It establishes a forum for consultation and information exchange.
5. Safeguards
In accordance with the provisions laid down in Decision No. 2/2000 (Article 15), the EC or
Mexico may take appropriate measures where the increase in imports of a product of one Party leads
to serious injury in the domestic industry of like or directly competitive products or seriousWT/REG109/3
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disturbances in any sector of the economy or serious difficulties which could bring about serious
deterioration in the economic situation of a region of the importing Party.
- Balance-of-payment difficulties
Where one or more Member States of the EU or Mexico is in serious balance of payment
difficulties, the Community or Mexico may adopt restrictions on imports in accordance with the
conditions established under the GATT.
6. Anti-Dumping and Countervailing Measures
The Parties confirm their rights and obligations arising from the WTO Agreement on
Implementation of Article VI of the GATT 1994 and from the WTO Agreement on Subsidies and
Countervailing Measures.
7. Subsidies and State-Aid
There are no provisions concerning subsidies and State-aid other than Article 14 (dealing with
countervailing duties).
8. Sector-Specific Provisions
8.1. Agricultural products
(a) Agricultural products originating in Mexico  benefit on import into the EC from the
provisions set out in Annex I.  For products where the customs tariff foresees the
application of an ad valorem  duty and a specific duty resulting from the application
of entry price systems, rates of reduction apply only to the ad valorem  duty.  For
certain products such as cut flowers, asparagus, honey and frozen strawberries,
customs duties are eliminated or reduced within the limits of tariff quotas.  For certain
processed agricultural products, the Community applies preferential customs duties
within the limits of a tariff quota or reduced customs duties to Mexican imports.
(b) Agricultural products originating in the Community benefit on import into Mexico
from the provisions set out in Annex II.  For certain processed agricultural products,Mexico applies reduced customs duties to EC imports.
(c) Three years after entry into force the Commun ity and Mexico will assess the situation
of their trade in agricultural products with a view to determining further liberalisation
measures to be applied by the Community and Mexico.  Products listed in
category "O" shall be reviewed in accord ance with developments in intellectual
property rights.
(d) The provisions on free movement of goods do not preclude the retention by the
Community of an agricultural component on imports of certain processed agricultural
products originating in Mexico.
8.2. Fisheries
(a) Fishery products originating in Mexico benefit on import into the EC from the
provisions set out in Annex I.WT/REG109/3
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For certain products (canned tuna) customs duties are reduced within the limits of a
tariff quota.
(b) Fishery products originating in the Community benefit on import into Mexico from
the provisions set out in Annex II.
For certain products (canned tuna), customs duties are reduced within the limits of a
tariff quota.
(c) Three years after entry into force, the Community and Mexico will assess the
situation of their trade in fish and fishery products with a view to determining further
liberalisation measures to be applied by the Community and Mexico for the above
mentioned products.  Before September 2001, the Community and Mexico shouldundertake discussions to examine the possibility of opening a preferential tariff rate
quota for tuna loins by 1 January 2002.
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
Decision No. 2/2000 does not preclude the adoption or enforcement of measures which are
necessary to protect public morals, to protect human, animal or plant life or health, to secure
compliance with laws or regulations which are in consistent with that Decision, including those
relating to customs enforcement, the protection of intellectual property rights;  and the prevention of
deceptive practices, relate to the importation or exportation of gold or silver, relate to the protection of
national treasures of artistic, historic or archaeological value, or relate to the conservation of
exhaustible natural resources if such measures are made effective in conjunction with restrictions on
domestic production or consumption.  However, such prohibitions or restrictions shall not constitute ameans of arbitrary or unjustifiable discrimination where the same conditions prevail or a disguised
restriction on trade between the Parties.  Finally, an exception clause relating to national security is
contained in the Global Agreement and applies to Decision No. 2/2000.
2. Accession
Decision No. 2/2000 does not contain any provision allowing other countries to accede to that
Decision. Neither does the Global Agreement.
3. Consultation and Dispute Settlement Procedures
Either party may request consultations within the Joint Committee with respect to any matter
relating to the application or interpretation of Decision No. 2/2000 or affecting its operation.
Differences are settled by means of a decision.
Furthermore, when a Party considers that a measure violates a provision of Decision
No. 2/2000 (except the provisions referred to in Article 41 of the Decision) it may request theestablishment of a panel which consists of 3 arbitrators selected by the Parties in accordance with a
selection procedure set out in that Decision (Article 44).  The arbitration panel takes decisions by
majority votes and its rulings are binding.  The panel procedure foresees that a panel issues an initial
and final report within a certain timeframe, with which the Parties are obliged to comply.  If a Party
fails to implement a panel report, the other Party is  entitled to suspend benefits under the Decision.
The arbitration panel can upon request intervene in different stages of the implementation, includingWT/REG109/3
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on a reasonable period of time, consistency of implementation measures with a panel report,
suspension of benefits etc.
The dispute settlement procedures under Decision No. 2/2000 are without prejudice to each
Party's rights and obligations under the WTO Agreement (Article 47(3) and (4)).
4. Relation with other Trade Agreements
Decision No. 2/2000 does not preclude the maintenance or establishment of customs unions,
free trade areas or other arrangements between either Party and third countries, except insofar as they
do not alter the rights and obligations provided for in that Decision.  Consultations are foreseen
between the Parties within the Joint Committee on agreements establishing or adjusting customsunions or free trade areas and, where required, on other major issues related to the Parties' respective
trade policies with third countries.
5. Institutional Framework
A Joint Council is established by the Global Agreement and meets at Ministerial level.  It
supervises the implementation of that Agreement and takes Decisions in the cases provided for in the
Agreement.  The Joint Council is assisted in the performance of its duties by a Joint Committee,
composed of senior civil servants, to which th e Joint Council may delegate any of its powers.
Decision No. 2/2000 foresees in a number of specif ic duties of the Joint Committee with respect to
trade and other related matters.  This committee is inter alia  responsible for supervising the
implementation and operation of this Decision, undertaking consultations, and taking decisions with
regard to a number of issues.  Finally, a number of special committees are established by this
Decision.  These assist the Joint Council and the Joint Committee in the administration of this
Decision.
6. Duration
Decision No. 2/2000 is concluded for an unlimited period.
7. Previous Agreements
Decision No. 2/2000 is based on the Interim Agreement on Trade and Trade Related Matters
which entered into force on 1 July 1998 and ceased to exist on 1 October 2000 once the Global
Agreement entered into force.  Decision No. 2/2000 was then deemed to have been adopted by the
Joint Council of the Global Agreement.  The objective of this Agreement is to establish a framework
to develop and strengthen trade between the Parties, including the progressive liberalisation of trade ingoods in accordance with Article XXIV GATT.
Furthermore, the objectives of the Global Agreement are: to institutionalise a political
dialogue between the Parties; to strengthen commercial and economic relations by means of
progressive and reciprocal liberalisation of trade in services and goods in conformity with the WTOrules; and to strengthen and amplify co-operation.
IV. OTHER
Provisions on Services
A separate Decision containing provisions on liberalisation of services was adopted by the
Joint Council of the Global Agreement (Decision 2/2001, which was adopted on 27 February 2001WT/REG109/3
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and entered into force on 1 March 2001).  This Decision establishes an economic integration
agreement between the Community and its Member States, on the one part, and Mexico, on the other
part, in the sense of Article V GATS.
Investment and related payments
Title III of this subsequent and separate Decision (i.e. Decision 2/2001 of 27 February 2001)
also establishes the commitment of the Parties to  progressively abolish any restriction on payments
related to direct investment, investment in real estate and purchase and sale of any kind of securities.
Likewise, the Parties undertake not to introduce and new restrictions on payments related to direct
investment.  The Decision also includes provisions on exchange rate policy and monetary policy
difficulties, balance-of-payments difficulties, transfers, investment promotion and internationalcommitments on investment.
Government procurement
Title III of Decision No. 2/2000 applies to any law, regulation, procedure or practice
regarding government procurement made by entities of goods, services and construction services, as
provided for in Annexes VI to IX to that Decision .  Each Party will provide access to the respective
covered procurement market, considering those procurements above the threshold foreseen in Annex
X, and at central or federal level and governmental enterprises.
The procurement Title includes inter alia  the following provisions: principles of
non-discrimination and national treatment (article 26), procurement procedures (article 29), and bid
challenge procedure (article 30). Other provisions such as the submission of information and technical
cooperation are included.
Consultation mechanism on intellectual property rights
Other provisions on intellectual property rights are included in the Decision mentioned
under IV.1 (Decision 2/2001).  Decision No. 2/2000 establishes a consultation mechanism in case
difficulties arise in the protection of intellectual property. Other provisions on intellectual property
rights are included in the Decision mentioned under IV.1.  These concern in particular mutual
commitments to accede to a certain number of relevant IPR Conventions.
Competition policy
Decision No. 2/2000 establishes a co-operation mechanism between the authorities of the
Parties having responsibility for implementation of competition rules.  The objectives of thismechanism are to promote co-operation and co-ordination between the Parties, and to eliminate anti
competitive activities through the application of their respective laws in order to avoid adverse effects
to their trade and economic development. Provisions on technical assistance and information are also
included.
Co-operation
Decision No. 2/2000 foresees the strengthening of co-operation in areas such as customs
matters; standards, technical regulations and conformity assessment procedures; competition matters;
government procurement; as well as sanitary and phytosanitary measures, all which are closely relatedto the functioning of the Free-Trade Area.WT/REG109/3
Page 12
ANNEX
Trade Data
Note: The following tables show the development of trade between the EC and Mexico over the
period 1997-2000.  For ease of comparison, figures are also given for the development of EC
trade with all third countries.
Table 1
Share of Mexico in Total EU Trade 1997-2000
(Billion ECU/EUR)
Extra-EU Mexico Year
Exports Imports Total Exports Imports Total
1997 721.1 672.6 1,393.7 7.4 3.8 11.2
1998 733.4 710.5 1,444.0 9.3 4.0 13.4
1999 760.2 779.2 1,539.4 10.4 4.7 15.1
2000 936.0 1,025.5 1,961.6 13.9 7.0 20.9
Table 2
Share of Mexico in Total EU Trade 1997-2000
(Percentage)
Extra-EU Mexico Year
Exports Imports Total Exports Imports Total
1997 51.7 48.3 100 1.0 0.6 0.8
1998 50.8 49.2 100 1.3 0.6 0.9
1999 49.4 50.6 100 1.4 0.6 1.0
2000 47.7 52.3 100 1.5 0.7 1.1WT/REG109/3
Page 13EU15 trade 1997-2000 with Mexico (million €)
imports exports balance total trade
HS Section 1997 1998 1999 2000 1997 1998 1999 2000 1997 1998 1999 2000 1997 1998 1999 2000
011 Extra-EU1506-Jun-01
Total 3,818 4,018 4,695 6,994 7,430 9,341 10,422 13,880 3,612 5,323 5,727 6,886 11,248 13,359 15,117 20,874
of which:
01 Animals & animal products 1 2 18 57 06 62 2 2 1 1 3 1 0 8 2 1 71 0 12 83 7 1 5 03 4 3 1 9 8 1 7 8 2 8 3
02 Vegetable products 302 215 193 238 78 47 58 41 -225 -169 -136 -197 380 262 251 278
03 Animal or vegetable fats 2 5 4 5 1 21 11 01 7 1 0 6 51 1 1 41 61 42 2
04 Prepared foodstuffs 106 130 121 152 185 216 243 338 79 86 122 187 291 346 363 490
05 Mineral products 849 655 851 1,719 26 101 71 111 -823 -554 -780 -1,608 875 755 922 1,830
06 Chemical products 301 318 367 542 948 1,114 1,221 1,552 647 796 854 1,010 1,249 1,432 1,588 2,094
07 Plastics & rubber 91 105 118 140 247 303 357 515 156 198 239 376 338 408 475 655
08 Hides & skins 21 19 21 25 18 36 37 47 -3 17 16 22 39 55 59 72
09 Wood & wood products 4 3 4 3 81 41 21 7 51 1 81 4 1 21 71 62 0
10 Wood pulp products 46 64 61 78 191 214 243 338 145 151 183 261 237 278 304 416
11 Textiles & textile articles 126 98 75 83 183 248 257 348 57 150 182 265 309 346 333 430
12 Footwear, headgear 26 21 14 10 11 18 18 32 -15 -3 4 21 37 39 32 42
13 Articles of stone, plaster, cement, asbestos 29 37 42 47 131 161 175 184 103 124 133 137 160 198 216 231
14 Pearls, (semi-)precious stones, metals 104 133 102 129 15 20 22 52 -89 -112 -80 -77 119 153 125 180
15 Base metals & articles thereof 282 175 131 213 629 823 745 965 347 648 613 752 911 998 876 1,177
16 Machinery & mechanical applicances 962 1,165 1,382 2,250 3,123 3,918 4,601 5,918 2,162 2,753 3,219 3,668 4,085 5,083 5,982 8,168
17 Transportation equipment 155 408 743 833 895 1,433 1,577 2,290 739 1,025 834 1,458 1,050 1,840 2,320 3,123
18 Instruments - measuring, musical 104 149 162 175 234 269 379 475 130 120 216 300 337 419 541 650
19 Arms & ammunition 1000 4129 4129 523 1 0
20 Miscellaneous 74 86 83 91 81 106 140 189 7 20 57 98 156 193 223 280
21 Works of art 1 1 33 1 0 4741 2 - 51 - 9 5 2 07 1 1
Other 111 136 146 186 185 168 143 224 73 32 -3 38 296 304 290 410
Statistical Regime 4 (Source Eurostat COMEXT 28-May-01) TRADE/D/1  Paul VERBURGTMexico
0412 MexicoWT/REG109/3
Page 14
EU15 trade 1997-2000 wi th EXTRA-EUR (million €)
imports exports balance total trade
HS Section 1997 1998 1999 2000 1997 1998 1999 2000 1997 1998 1999 2000 1997 1998 1999 2000
011 Extra-EU1506-Jun-01
Total 672,568 710,538 779,216 1,025,544 721,128 733,428 760,172 936,025 48,561 22,890 -19,044 -89,519 1,393,696 1,443,966 1,539,388 1,961,568
of which:
01 Animals & animal products 12,227 13,392 13,430 15,372 10,897 10,090 10,629 12,056 -1,330 -3,302 -2,801 -3,316 23,124 23,481 24,059 27,428
02 Vegetable products 25,438 25,098 23,940 25,079 9,758 9,368 9,852 11,188 -15,680 -15,730 -14,089 -13,891 35,196 34,467 33,792 36,267
03 Animal or vegetable fats 2,390 2,789 2,635 2,360 2,978 3,223 2,620 2,669 588 434 -15 309 5,368 6,012 5,255 5,028
04 Prepared foodstuffs 19,019 19,587 20,146 22,152 27,746 27,332 26,437 29,923 8,726 7,745 6,291 7,771 46,765 46,919 46,584 52,075
05 Mineral products 95,742 72,327 88,453 159,793 19,632 16,876 19,240 33,254 -76,110 -55,450 -69,214 -126,539 115,374 89,203 107,693 193,047
06 Chemical products 46,237 49,736 53,424 63,662 81,774 85,324 95,358 113,290 35,537 35,589 41,934 49,628 128,011 135,060 148,783 176,952
07 Plastics & rubber 19,323 21,103 21,726 26,325 27,148 27,515 28,751 35,212 7,825 6,412 7,025 8,887 46,472 48,618 50,478 61,537
08 Hides & skins 8,498 8,239 7,724 10,201 7,375 6,471 6,484 8,964 -1,123 -1,768 -1,241 -1,237 15,874 14,709 14,208 19,165
09 Wood & wood products 10,974 11,451 12,415 14,596 4,928 5,204 5,766 6,991 -6,046 -6,247 -6,649 -7,605 15,902 16,656 18,181 21,587
10 Wood pulp products 11,997 12,616 13,112 17,018 19,764 19,664 20,172 24,457 7,767 7,048 7,060 7,440 31,760 32,281 33,284 41,475
11 Textiles & textile articles 55,253 57,954 59,625 69,598 34,725 35,322 34,943 40,562 -20,528 -22,632 -24,682 -29,037 89,979 93,276 94,568 110,160
12 Footwear, headgear 8,308 8,264 9,172 10,904 6,313 6,107 5,758 6,823 -1,995 -2,157 -3,414 -4,081 14,621 14,371 14,930 17,727
13 Articles of stone, plaster, cement, asbestos 5,091 5,677 6,341 7,832 12,916 12,936 13,016 15,116 7,825 7,259 6,674 7,283 18,007 18,613 19,357 22,948
14 Pearls, (semi-)precious stones, metals 23,890 26,975 26,540 35,644 19,287 18,005 21,417 28,948 -4,603 -8,970 -5,123 -6,695 43,177 44,979 47,957 64,592
15 Base metals & articles thereof 40,315 44,664 42,888 57,384 46,947 45,807 43,145 52,839 6,633 1,143 257 -4,545 87,262 90,471 86,033 110,223
16 Machinery & mechanical applicances 173,128 197,538 222,885 298,486 226,484 235,496 239,830 297,536 53,356 37,959 16,945 -950 399,612 433,034 462,716 596,022
17 Transportation equipment 56,404 69,178 81,613 90,474 104,706 110,905 112,647 139,300 48,302 41,727 31,034 48,825 161,111 180,083 194,259 229,774
18 Instruments - measuring, musical 27,814 30,261 33,923 42,442 28,129 29,259 31,426 39,453 315 -1,003 -2,497 -2,989 55,944 59,520 65,348 81,895
19 Arms & ammunition 603 510 751 601 1,326 1,661 1,271 1,571 724 1,151 520 970 1,929 2,170 2,022 2,172
20 Miscellaneous 17,529 19,134 21,833 27,147 15,177 15,326 15,817 18,347 -2,353 -3,808 -6,016 -8,800 32,706 34,459 37,650 45,493
21 Works of art 1,797 2,574 2,420 2,671 2,934 3,034 3,410 4,581 1,136 460 990 1,910 4,731 5,608 5,831 7,252
Other 10,589 11,472 14,218 25,803 10,183 8,504 12,183 12,946 -407 -2,969 -2,035 -12,857 20,772 19,976 26,402 38,749
Statistical Regime 4 (Source Eurostat COMEXT 28-May-01) TRADE/D/1  Paul VERBURGTEXTRA-EUR
1011 EXTRA-EURWT/REG109/3
Page 15balance balance
HS Section M €%  T o t a lM €%  T o t a lM € M €%  T o t a lM €%  T o t a lM € i m p o r t s e x p o r t s
06-Jun-01
Total 6,994 100.0% 13,880 100.0% 6,886 1,025,544 100.0% 936,025 100.0% -89,519 0.7% 1.5% 1.98
of which:
01 Animals & animal products 66 1.0% 217 1.6% 150 15,372 1.5% 12,056 1.3% -3,316 0.4% 1.8% 3.26
02 Vegetable products 238 3.4% 41 0.3% -197 25,079 2.4% 11,188 1.2% -13,891 0.9% 0.4% 0.17
03 Animal or vegetable fats 5 0.1% 17 0.1% 11 2,360 0.2% 2,669 0.3% 309 0.2% 0.6% 3.09
04 Prepared foodstuffs 152 2.2% 338 2.4% 187 22,152 2.2% 29,923 3.2% 7,771 0.7% 1.1% 2.23
05 Mineral products 1,719 24.6% 111 0.8% -1,608 159,793 15.6% 33,254 3.6% -126,539 1.1% 0.3% 0.06
06 Chemical products 542 7.8% 1,552 11.2% 1,010 63,662 6.2% 113,290 12.1% 49,628 0.9% 1.4% 2.86
07 Plastics & rubber 140 2.0% 515 3.7% 376 26,325 2.6% 35,212 3.8% 8,887 0.5% 1.5% 3.69
08 Hides & skins 25 0.4% 47 0.3% 22 10,201 1.0% 8,964 1.0% -1,237 0.2% 0.5% 1.88
09 Wood & wood products 3 0.0% 17 0.1% 14 14,596 1.4% 6,991 0.7% -7,605 0.0% 0.2% 5.40
10 Wood pulp products 78 1.1% 338 2.4% 261 17,018 1.7% 24,457 2.6% 7,440 0.5% 1.4% 4.35
11 Textiles & textile articles 83 1.2% 348 2.5% 265 69,598 6.8% 40,562 4.3% -29,037 0.1% 0.9% 4.20
12 Footwear, headgear 10 0.2% 32 0.2% 21 10,904 1.1% 6,823 0.7% -4,081 0.1% 0.5% 3.02
13 Articles of stone, plaster, cement, asbestos 47 0.7% 184 1.3% 137 7,832 0.8% 15,116 1.6% 7,283 0.6% 1.2% 3.95
14 Pearls, (semi-)precious stones, metals 129 1.8% 52 0.4% -77 35,644 3.5% 28,948 3.1% -6,695 0.4% 0.2% 0.40
15 Base metals & articles thereof 213 3.0% 965 6.9% 752 57,384 5.6% 52,839 5.6% -4,545 0.4% 1.8% 4.54
16 Machinery & mechanical applicances 2,250 32.2% 5,918 42.6% 3,668 298,486 29.1% 297,536 31.8% -950 0.8% 2.0% 2.63
17 Transportation equipment 833 11.9% 2,290 16.5% 1,458 90,474 8.8% 139,300 14.9% 48,825 0.9% 1.6% 2.75
18 Instruments - measuring, musical 175 2.5% 475 3.4% 300 42,442 4.1% 39,453 4.2% -2,989 0.4% 1.2% 2.71
19 Arms & ammunition 0 0.0% 9 0.1% 9 601 0.1% 1,571 0.2% 970 0.1% 0.6% 18.94
20 Miscellaneous 91 1.3% 189 1.4% 98 27,147 2.6% 18,347 2.0% -8,800 0.3% 1.0% 2.07
21 Works of art 10 0.1% 1 0.0% -9 2,671 0.3% 4,581 0.5% 1,910 0.4% 0.0% 0.13
Other 186 2.7% 224 1.6% 38 25,803 2.5% 12,946 1.4% -12,857 0.7% 1.7% 1.20
Statistical Regime 4 (Source Eurostat COMEXT 28-May-01) TRADE/D/1  Paul VERBURGTEU15 trade 2000 with EXTRA-EUR Mexico / Total
0412 MexicoMexico
market shares Exp-Imp 
ratio
1011 Extra-EUREU15 trade 2000 with Mexico
imports exports imports exports
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