WT/TPR/S/429 /Rev.1  
18 April 2023 
(23-2752) Page: 1/183 
Trade Policy Review Body   
 
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
MEXICO 
Revisi on 
This report, prepared for the seventh Trade Policy Review of Mexico, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Mexico on its trade policies 
and practices.  
 
Any technical questions arising from this re port may be addressed to Mr Angelo Silvy 
(tel.: 022 739 5249), Ms Eugenia Lizano ( tel.: 022 739 6578) and Ms Stephanie Dorange -Patoret 
(tel.: 022 739 5497).  
 
Document WT/TPR/G/429 contains the policy statement submitted by Mexico.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report was drafted in  Spanish.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  8 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  14 
1.1   Main Features of the Economy  ................................ ................................ ....................  14 
1.1.1   Sectoral developments in production and employment  ................................ ................  14 
1.1.2   Measures to address the pandemic  ................................ ................................ ...........  17 
1.2   Recent Economic Developments ................................ ................................ ..................  20 
1.2.1   Real sector  ................................ ................................ ................................ ...........  20 
1.2.2   Fiscal policy  ................................ ................................ ................................ ..........  22 
1.2.3   Moneta ry and exchange -rate policy  ................................ ................................ ..........  26 
1.2.4   Balance of payments  ................................ ................................ ..............................  30 
1.3   Developments in Trade and Investment  ................................ ................................ ....... 32 
1.3.1   Trends and patterns in merchandise and services trade  ................................ ...............  32 
1.3.1.1    Merchandise trade  ................................ ................................ ...............................  32 
1.3.1.1.1    Composition of merchandise trade  ................................ ................................ ...... 32 
1.3.1.1.2    Direction of merchandise trade  ................................ ................................ ...........  33 
1.3.1.2    Trade in services  ................................ ................................ ................................ . 35 
1.3.2   Trends and patterns in FDI  ................................ ................................ ......................  36 
2   TRADE AND INVESTMENT REGIMES  ................................ ................................ ...........  38 
2.1   General Framework  ................................ ................................ ................................ .. 38 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ...... 41 
2.3   Trade Agreements and Arrangements  ................................ ................................ ..........  43 
2.3.1   WTO ................................ ................................ ................................ ....................  43 
2.3.2   Regional and preferential agreements  ................................ ................................ ....... 44 
2.3.3   Other agreements and arrangements  ................................ ................................ ........  48 
2.4   Investment Regime  ................................ ................................ ................................ .. 48 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  53 
3.1   Measures Directly Affecting Imports  ................................ ................................ ............  53 
3.1.1   Registration, documentation and customs procedures  ................................ .................  53 
3.1.2   Customs valuation  ................................ ................................ ................................ . 56 
3.1.3   Rules of origin  ................................ ................................ ................................ ....... 57 
3.1.4   Tariffs  ................................ ................................ ................................ ..................  58 
3.1.4.1    Structure and levels  ................................ ................................ ............................  58 
3.1.4.2    Tariff quotas  ................................ ................................ ................................ ....... 61 
3.1.4.3    Preferential tariffs  ................................ ................................ ...............................  63 
3.1.4. 4   Tariff concessions  ................................ ................................ ................................  65 
3.1.5   Other charges affecting imports  ................................ ................................ ...............  66 
3.1.6   Import prohibitions, restrictions and licensing  ................................ ............................  68 
3.1.7   Anti-dumping, countervailing and safeguard measures  ................................ ................  73 
3.1.7.1    Anti-dumping measures  ................................ ................................ .......................  75 WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.1.7.2    Countervailing measures  ................................ ................................ ......................  76 
3.1.7.3    Safeguard measures  ................................ ................................ ............................  77 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............  77 
3.2.1   Registration and documentation  ................................ ................................ ...............  77 
3.2.2   Export taxes and duties  ................................ ................................ ..........................  78 
3.2.3   Export prohibitions, restrictions and licensing  ................................ .............................  78 
3.2.4   Export support  ................................ ................................ ................................ ...... 80 
3.2.5   Export promotion  ................................ ................................ ................................ ... 82 
3.2.6   Export finance, insurance and guarantees  ................................ ................................ . 83 
3.3   Other measures affecting production and trade  ................................ .............................  84 
3.3.1   Incentives  ................................ ................................ ................................ ............  84 
3.3.2   Technical regulations and standards  ................................ ................................ .........  90 
3.3.3   Sanitary and phytosanitary measures  ................................ ................................ ....... 94 
3.3.4   Competition policy and price controls  ................................ ................................ ........  98 
3.3.4.1    Competition policy  ................................ ................................ ..............................  98 
3.3.4.2    Price controls  ................................ ................................ ................................ ... 101 
3.3.5   State trading, State -owned enterprises and privatization  ................................ ...........  102 
3.3.6   Government procurement  ................................ ................................ .....................  102 
3.3.6.1    Procurement procedures for State -owned production enterprises  .............................  106 
3.3.7   Intellectual property rights  ................................ ................................ ....................  107 
3.3.7.1    Industrial property  ................................ ................................ ............................  109 
3.3.7.2    Patents, utility models, industrial designs and layout designs of integrated circuits  ..... 109 
3.3.7.3    Marks  ................................ ................................ ................................ ..............  111 
3.3.7.4    Designations of origin and geographical indications  ................................ ................  112 
3.3.7.5    Copyright and related rights  ................................ ................................ ...............  112 
3.3.7.6    Plant varieties  ................................ ................................ ................................ .. 113 
3.3.7.7    Enforcing IPRs  ................................ ................................ ................................ .. 113 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ...................  116  
4.1   Agriculture, Forestry, and Fisheries  ................................ ................................ ...........  116 
4.1.1   Measures affecting imports and exports  ................................ ................................ .. 119 
4.1.2   Domestic support  ................................ ................................ ................................ . 120 
4.1.2.1    Production for Well -being Programme  ................................ ................................ .. 123 
4.1.2.2    Guaranteed Prices Programme for Basic Foods  ................................ ......................  124 
4.1.2.3    Agricultural finance and insur ance ................................ ................................ ....... 126 
4.2   Energy  ................................ ................................ ................................ ..................  126 
4.2.1   Hydrocarbons  ................................ ................................ ................................ ...... 127 
4.2.2   Electricity  ................................ ................................ ................................ ...........  133 
4.3   Manufacturing  ................................ ................................ ................................ ........  135 
4.4   Services  ................................ ................................ ................................ ................  137 
4.4.1   Financial services  ................................ ................................ ................................ . 137 WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.4.1.1    Banks  ................................ ................................ ................................ ..............  140 
4.4.1.2    Insurance  ................................ ................................ ................................ ........  147 
4.4.1.3    Securities market  ................................ ................................ ..............................  149 
4.4.2   Telecommunications  ................................ ................................ .............................  152 
4.4.3   Transport  ................................ ................................ ................................ ...........  156 
4.4.3.1    Air transport  ................................ ................................ ................................ ..... 158 
4.4.3.2    Maritime transport  ................................ ................................ ............................  160 
4.4.4   Tourism  ................................ ................................ ................................ ..............  163 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 165  
 
CHARTS  
 
Chart 1.1 Current account and financial account of the balance of payments, 2016 -21 ...............  31 
Chart 1.2 Merchandise trade by main products, 2016 and 2021  ................................ ..............  34 
Chart 1.3 Merchandise trade by trading partner, 2016 and 2021  ................................ .............  35 
Chart 2.1 Composition of the APF  in 2022  ................................ ................................ ............  39 
Chart 2.2 Trade agreements signed by Mexico in force in 2022  ................................ ...............  45 
Chart 2.3 Steps to setting up a company  ................................ ................................ .............  52 
Chart 3.1 Frequency distribution of tariffs, 2016 and 2021  ................................ .....................  60 
Chart 3.2 Quota distribution by method of allocation, 20 17-21 Q3  ................................ ..........  63 
Chart 3.3 Automatic and non -automatic import licensing by HS section, 2021  ...........................  71 
Chart 3.4 Anti -dumping measures, 2017 -21 ................................ ................................ ........  76 
Chart 3.5 Automatic and non -automatic export licensing by HS section, 2021  ...........................  80 
Chart 3. 6 Exports and imports by type of regime, 2016 -21 ................................ ....................  81 
Chart.3.7 Inputs covered by the various PROSEC programmes, 2021  ................................ ...... 85 
Chart 3.8 NOM preparation procedure  ................................ ................................ .................  91 
Chart 3.9 NOMs by HS section, 2021  ................................ ................................ ..................  92 
Chart 3.10 NMX preparation procedure  ................................ ................................ ...............  93 
Chart 3.11 Public procurement data, by procurement method, 2017 -21 ................................ . 106 
Chart 3.12 Industrial property data, 2017 -21 ................................ ................................ ..... 108 
Chart 4.1 Hydrocarbons and petroleum products trade balance, 2017 -21 ...............................  129 
Chart 4.2 Exports and imports under the IMMEX programme by main  HS chapters,  
2016 and 2021  ................................ ................................ ................................ ..............  137 
Chart 4.3 Telecommunications indicators, 2017 -21 ................................ .............................  154 
Chart 4.4 Share in the telecommunications market, 2017 -21 Q3 ................................ ...........  155 
Chart 4.5 Degree of concentration in the telecommunications market, 2017 -21 ......................  155 
Chart 4.6 Foreign trade port operations, by cargo type, 2017 -21 ................................ ..........  162 
 WT/TPR/S/429 /Rev.1  • Mexico  
 
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  TABLES  
 
Table 1.1 Basic economic indicators, 2016 -22 (Q1)  ................................ ...............................  14 
Table 1.2 Structure of GDP by expenditure, 2016 -21 ................................ .............................  21 
Table 1.3 Balance of the Federal Government, 2016 -21 ................................ .........................  24 
Table 1.4 Public sector budgetary expenditure and re venue, 2016 -21 ................................ ...... 25 
Table 1.5 Main monetary indicators, 2016 -22 Q1  ................................ ................................ .. 27 
Table 1.6 Balance of payments, 2016 -21 ................................ ................................ .............  31 
Table 1.7 Trade in services, 2016 -21 ................................ ................................ ..................  36 
Table 1.8 Foreign direct investment by activity, 2016 -21 ................................ .......................  36 
Table 1.9 Foreign direct investment by country of origin, 2016 -21 ................................ ..........  36 
Table 2.1 Trade disputes, 2017 -22 ................................ ................................ .....................  44 
Table 2.2 Tariff elimination schedule agreed by Mexico under the CPTPP  ................................ .. 46 
Table 2.3 Activities reserved to the Mexican State  and to Mexicans, 2017 -22 ............................  49 
Table 2.4 Economic activities and companies subject to specific regulation, 2017 -22 .................  49 
Table 2.5 Private property regime for foreigners, 2017 -22 ................................ .....................  51 
Table 3.1 Customs processing fee (DTA) rates, 2022  ................................ .............................  55 
Table 3.2 Rules of origin under the regional trade agreements that have entered into force  
since 2017  ................................ ................................ ................................ ......................  57 
Table 3.3 Structure of MFN tariffs, 2016 and 2021  ................................ ................................  59 
Table 3.4 Tariff lines for which the applied MFN tariff is higher than the bound tariff,  2021 .........  61 
Table 3.5 Tariff lines subject to unilateral and WTO quotas, 2021  ................................ ............  62 
Table 3.6 Summary of preferential tariffs, 2021  ................................ ................................ ... 64 
Table 3.7 Imports receiving preferential treatment and MFN imports  ................................ ....... 65 
Table 3.8 Tax revenue related to taxes on foreign trade  ................................ ........................  66 
Table 3.9 Other import charges, 2022  ................................ ................................ .................  68 
Table 3.10 Prohibited imports (exports) (HS Chapter), 2021  ................................ ..................  69 
Table 3.11 Tariff lines subject to automatic and non -automatic import licensing, 2021  ...............  71 
Table 3.12 M inistries issuing import (export) permits, 2021  ................................ ...................  72 
Table 3.13 Definitive countervailing measures in force, 2017 -21 ................................ .............  77 
Table 3.14 Customs processing fee (DTA) for exports, 2022  ................................ ...................  78 
Table 3.15 Financial products offered by Bancomext  ................................ .............................  83 
Table 3.16 Cre dit granted by Bancomext, 2016 -20 ................................ ...............................  83 
Table 3.17 Some tax incentives, 2022  ................................ ................................ .................  85 
Table 3.18 Main support programmes, 2017 -22 ................................ ................................ ... 88 
Table 3.19 Main legal instruments that regulate the sanitary and phytosanitary system,  2021 ..... 94 
Table 3.20 Institu tions responsible for the sanitary system, 2022  ................................ ...........  95 
Table 3.21 Import certificates, 2021  ................................ ................................ ...................  97 
Table 3.22 COFECE competition data, 2017 -21 ................................ ................................ ... 100 
Table 3.23 Data on government procurement through framework contracts, 2017 -21 ..............  103 
Table 3.24 Government procurement processes  ................................ ................................ . 105 WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table 4.1 Main indicators for the agricultural sector, 2016 -21 ................................ ...............  116 
Table 4.2 Legislation in the agricultural sector, 2021  ................................ ...........................  118 
Table 4.3 Main institutions responsible for the agricultural sector, 2021  ................................ . 118 
Table 4.4 Agricultural support programmes  ................................ ................................ ....... 121 
Table 4.5 Production for Welfare Programme 2019 -21 ................................ .........................  123 
Table 4.6 Guaranteed Prices Programme for Basic Foods, 2020 -22 ................................ ........  125 
Table 4.7 Trade in hydrocarbons, 2020 and 2021  ................................ ...............................  129 
Table 4.8 Requirements for operating in the hydrocarbons sector, 2017 -22 ............................  131 
Table 4.9 Hydrocarbons extraction duty, 2021  ................................ ................................ ... 132 
Table 4.10 Main indicators for the agricultural sector, 2016 -21 ................................ .............  135 
Table 4.11 Entities supervised by the CNBV, March 2022  ................................ .....................  138 
Table 4.12 Financial system indicators, 2017 -21 ................................ ................................ . 139 
Table 4.13 Commercial banking activity indicators, 2017 -21 ................................ ................  142 
Table.4.14 Com mercial banking financial indicators, 2017 -21 ................................ ...............  143 
Table 4.15 Credit facilities established in response to the COVID -19 pandemic,  
30 September 2021  ................................ ................................ ................................ ....... 146 
Table 4.16 International traffic indicators, 2017 -21 ................................ .............................  160 
Table 4.17 International tourism indicators, 2017 -21 ................................ ..........................  163 
 
BOXES  
 
Box 1.1 Measure s implemented by the Bank of Mexico to address the COVID -19 pandemic  ........  28 
Box 2.1 Legislative procedure  ................................ ................................ ............................  40 
Box 2.2 Rules of origin under T -MEC ................................ ................................ ...................  46 
Box 3.1 Amendments to the general import/export procedure for the border region and the 
northern border zone  ................................ ................................ ................................ ....... 66 
Box 3.2 Thresholds for notifying economic mergers, 2017 -21 ................................ ...............  100 
Box 4.1 Mexican Petroleum Fund for Stabilization and Development (FMPED)  .........................  128 
Box 4.2 Clean energy certificates (CEL), 2017 -2022 ................................ ............................  134 
Box 4.3 Electronic commerce in Mexico  ................................ ................................ .............  153 
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  APPENDIX TABLES  
 
Table A1. 1 Merchandise exports by HS section and main chapter, 2016 -21 ...........................  165 
Table A1. 2 Merchandis e imports by HS section and main chapter, 2016 -21 ...........................  167 
Table A1. 3 Merchandise exports by trading partner, 2016 -21 ................................ ..............  169 
Table A1. 4 Merchandise imports by trading partner, 2016 -21 ................................ ..............  170 
Table A2. 1 Measures  notified to the WTO, 2017 -22 (31 May)  ................................ ..............  171 
Table A3. 1 Summary analysis of the MFN tariff, 2021  ................................ .........................  173 
Table A3. 2 Multilateral (WTO) tariff quotas and import volume, 2020  ................................ ... 175 
Table A3. 3 Unilateral tariff quotas and import volume, 2020  ................................ ...............  177 
Table A3. 4 Number of investigatio ns initiated and concluded, and AD measures imposed,  
2017-21 ................................ ................................ ................................ .......................  180 
Table A3. 5 Overview of industrial property rights under the LFP PI ................................ ........  182 
Table A4. 1 Air services agreements, 2017 -21 ................................ ................................ .... 183 
 
  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  SUMMARY  
1. The Mexican economy experienced a severe downturn starting in mid -2018, followed by a 
slight contraction in real GDP in 2019 due in particular to  a fall in gross capital formation, a 
reduction in public spending and a slowdown in private consumption. In 2020, the economy was 
badly affected by the COVID -19 pandemic, which caused GDP to shrink by 8.2% during the year. 
In 2021, the Mexican economy reb ounded, with GDP growth of around 4.8%, thanks in large part 
to the measures adopted to deal with the pandemic, which were aimed primarily at assisting the 
hardest -hit families and businesses, particularly small and medium -sized enterprises. These 
measures  include the opening of facilities to provide an adequate level of liquidity, incentives for 
the restructuring of bank loans and the implementation of social programmes and business 
support programmes, such as the Financial Support Programme for Family -Run Microenterprises.  
2. With the exception of pandemic response measures, Mexican fiscal policy remained tight in 
order to keep the fiscal balance under control. In November 2019, the Federal Law on Republican 
Austerity was adopted. Its purpose is to contribute  to the sound management of public resources, 
focusing mainly on reducing non -priority current expenditure. In 2020, the federal government 
introduced fiscal measures to attenuate the effects of the COVID -19 pandemic on health and the 
economy, in an amount  estimated to be equivalent to 2% of GDP. Furthermore, measures were 
taken to cut spending, apart from on priority programmes. Overall, the Mexican federal 
government's finances improved between 2018 and 2019, when a deficit of around 2% of GDP was 
recorde d. Through the Federal Law on Republican Austerity, an attempt was made to reduce the 
deficit; however, as a result of the economic recession caused by the pandemic, there was a 
decline in revenue collection and an increase in spending (albeit moderate). T he federal 
government deficit rose to 2.5% and 3.1% of GDP in 2020 and 2021, respectively. The public 
sector's net total debt has remained modest; in December 2021, it amounted to 46.3% of GDP.  
3. The Bank of Mexico operates an inflation targeting scheme to p rovide a framework for the 
implementation of monetary policy, with a permanent target of reaching an annual inflation rate of 
3%, plus or minus 1 percentage point, as measured by the national consumer price index (INPC). 
This target has not changed during the review period. In  2019, in response to declining inflation, a 
series of cuts were made to the target interest rate, the main monetary policy  instrument, as part 
of a trend that intensified during the pandemic. A number of additional measures were 
imple mented to promote orderly functioning of the financial markets, strengthen credit channels 
and provide liquidity. Against a backdrop of growing inflation, June 2021 marked a turning point in 
monetary policy, with the target interest rate being raised six t imes between then and February 
2022. On 30  September 2021, the additional measures expired, with the exception of those that 
remain available to the Bank of Mexico indefinitely. During the review period, the end -of-period 
INPC exceeded the inflation target  in some years, while in others it was within the range of 
variability. Inflation accelerated in the last quarter of 2021, with the INPC increasing at an annual 
rate of 7%. The annual rate of change in the INPC in Mexico stood at 7.7% in May 2022.  
4. The curr ent account of Mexico's balance of payments recorded a modest shortfall during 
2017-19, but experienced a sizeable surplus in 2020, before slipping back into a deficit, albeit a 
small one, in 2021. The COVID -19 pandemic caused a sharp contraction in export s and imports of 
goods and services in 2020. However, the decline in imports was greater, and resulted in a surplus 
in the balance -of-payments current account of USD  26,210  million, or 2.4% of GDP. In 2021, the 
trade balance posted a deficit of USD  14,491  million (0.9% of GDP) and there was a current 
account deficit of  0.4% of GDP. Developments in the financial account enabled reserves to be 
accumulated throughout most of the period. During most of the period under review, annual 
foreign direct investment ( FDI) flows remained at around USD 30 billion. The main FDI -recipient 
sectors were manufacturing industries, financial and insurance services, trade, transportation, 
mining and energy.  
5. During the period under review, trade in goods  experienced a slowdown, f ollowed by a 
contraction, as a consequence of the COVID -19 pandemic, and a recovery in 2021. Merchandise 
exports in 2021 amounted to USD  494,225  million (18.5% higher than in 2020), while imports 
totalled USD  505,716 million (32% above the 2020 level). Mex ico's exports continue to be 
dominated by manufactured products, which accounted for more than 85% of the total in 2021, 
while agricultural products made up 5%, and mineral products (mainly oil products) and those of 
the extractive industries, 7.5%. Import s and exports have similar structures. The main import 
products are electrical machinery and appliances (35.7% of imports in 2021), and transport WT/TPR/S/429 /Rev.1  • Mexico  
 
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  equipment (8.0% of total imports). Mexico's export markets remain highly concentrated. The 
United  States is st ill Mexico's main trading partner, with a share of total exports and imports in 
2021 of 80.7% and 43.8%, respectively. Mexico's services trade continued to be in deficit during 
the review period, owing mainly to shortfalls in transport and insurance. Trave l, traditionally in 
surplus, was heavily affected by the pandemic.  
6. Mexico's  trade policy objectives are to promote foreign trade, defend its trade interests, and 
negotiate, implement and administer trade agreements. The use of trade as a tool to reduce 
poverty and socio -economic inequalities has not yielded the expected results because of the export 
activities are predominantly focused on certain goods produced in a limited number of regions of 
the country. To promote export diversification, one of the trad e policy objectives is to attract 
investment to sectors and regions that have historically had little export share and to continue to 
maximize the benefits granted under existing incentive programmes, specifically export promotion 
schemes. As part of its t rade strategy, Mexico also promotes women's empowerment. The scope of 
trade policy will also depend on the development of an adequate transport and logistics 
infrastructure.  
7. Mexico is a founding Member of the WTO and grants, as a minimum, most -favoured -nation 
(MFN) treatment to all its trading partners. Mexico participates actively in the regular activities of 
the WTO, negotiations and discussions on new trade -related topics, and, given its high degree of 
integration in international trade, attaches great i mportance to the smooth functioning of a 
rules-based multilateral trading system that contributes to inclusive and sustainable development. 
In 2016, Mexico ratified the Trade Facilitation Agreement and undertook to implement all the 
agreed provisions immed iately. In 2021, it established its National Trade Facilitation  Committee. 
Mexico is not a party to the Agreement on Government Procurement or the Agreement on Trade in 
Civil Aircraft, nor does it have observer status in the respective committees. Mexico i s not a party 
to the Information Technology Agreement either. Since its last trade policy review in 2017, Mexico 
has submitted various notifications to the WTO, in compliance with the different Agreements, and 
has not made frequent use of the dispute settl ement mechanism.  
8. Regionalism is considered of utmost importance for Mexico's trade relations, as evidenced by 
the large number of preferential trade agreements signed. Since 2017, three new treaties have 
entered into force for Mexico: the Comprehensive and  Progressive Agreement for Trans -Pacific 
Partnership (CPTPP); the Mexico -United States -Canada Agreement (T -MEC), which replaced the 
North American Free Trade Agreement (NAFTA); and the Trade Continuity Agreement with the 
United Kingdom.  
9. Mexico's investment regime is relatively open, although there are still some exceptions and 
restrictions with regard to FDI. Certain activities, mainly in the energy and services sectors, are 
still reserved to the State or to Mexican legal and natural pers ons, while in other sectors the share 
of FDI is limited (to 10%, 25% or 49%), or a majority share of FDI is subject to the authorization 
of the National Foreign Investment Commission (CNIE). Between 2017 and 2022, no changes were 
made either to FDI caps, e xcept in the case of domestic airlines, or to the activities and companies 
in relation to which they are applied. Despite the restrictions, and to allow the capitalization of 
Mexican companies, Mexico continues to use the neutral investment mechanism, thro ugh which 
foreigners may invest in sectors reserved to Mexicans or beyond the ceilings imposed on FDI, 
without the investment being regarded as foreign. However, this mechanism gives foreign 
investors limited rights.  
10. During the review period, the main chan ge in the customs domain was the creation, in 2021, 
of the Mexican National Customs Agency (ANAM), which replaced the General Customs 
Administration (AGA). Since 2022, customs clearance for the import and export of goods has been 
carried out by ANAM. Despi te the institutional change, the requirements for importing and 
exporting, and the procedures for determining the customs value of imported goods, have not 
changed substantially since the last review in 2017. However, since then, Mexico has continued to 
implement measures to facilitate trade, such as electronic customs clearance (paperless customs), 
the use of consolidated customs forms and the improvement of the Single Window for Mexican 
Foreign Trade (VUCEM).  
11. There was a significant reduction in the numbe r of tariff lines during the review period. In 
2016, Mexico's tariff schedule contained 12,275 lines at the 8 -digit level of HS 2012, while in 
2021, this number fell to 7,802 lines at the HS 8 -digit level of HS 2017. However, the MFN tariff WT/TPR/S/429 /Rev.1  • Mexico  
 
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  structure has n ot changed substantially. Mexico uses mostly ad valorem  tariffs, with the exception 
of 45 tariff lines for which it uses compound or specific tariffs; the two types of tariffs continue to 
apply to the same category of products as in 2016. Mexico also uses seasonal tariffs for three tariff 
lines. The average applied MFN tariff rose during the review period, from 5.5% in 2016 to 6.7% in 
2021. Despite the rise in the average tariff, the protection afforded to agricultural products (WTO 
definition) fell from 14 .3% in 2016 to 13.2% in 2021. As in 2016, non -agricultural products are 
subject to a lower average tariff than agricultural products, although during the review period it 
increased from 4.6% to 5.9%.  
12. The duty -free status granted under all the free trade ag reements (FTAs), except that with 
Panama and under the CPTPP, covers over 90% of the total tariff schedule, and in some cases 
even reaches 99% or 100%. Despite the large number of trade agreements signed by Mexico, the 
low rates of preferential tariffs neg otiated and the high degree of trade liberalization provided for 
in these agreements, the percentage of imports receiving preferential treatment remained at 
around 36% in both 2020 and 2021. The low take -up of preferential tariff could be attributed to 
the existence of other preferential regimes to promote production and exports, or to tariff 
concessions granted, for example, to some of the goods imported into the border region and the 
northern border zone. In addition, nearly 50% of the tariff lines in Mex ico's MFN schedule already 
have a tariff of 0%, which could have eroded the preferences granted under the FTAs. As a result 
of tariff concessions and preferential trade, the share of tariffs as a percentage of Mexico's total 
tax revenues has remained stead y at around 2% during the period under review.  
13. The use of anti -dumping, countervailing and safeguard measures is central to Mexico's trade 
policy. Nevertheless, during the period 2017 -21, Mexico reduced recourse to these measures. For 
example, in the period in question, it initiated 28 anti -dumping investigat ions, which is fewer than 
in the previous review period (2012 -16), when it initiated 34 investigations. Most of the 
investigations initiated concern products from China (39.3%), the EU (14.3%), the United States 
(10.7%), Japan and the Republic of Korea (bo th 7.1%). During the review period, Mexico imposed 
28 final measures. As of December 2021, Mexico had 78 anti -dumping duties and two price 
undertakings. With regard to countervailing measures, Mexico did not initiate any investigations 
and has only three m easures in force, with an average duration of eight years and two  months. 
Moreover, Mexico did not initiate any safeguard investigations and has no measures in force, nor 
did it use the special safeguard provisions of the Agreement on Agriculture.  
14. The fede ral government can prohibit imports (or exports) or impose non -tariff regulations 
and restrictions (RRNAs) when it sees a pressing need to do so. RRNAs may consist of: prior 
permits, maximum quotas, Mexican Official Standards (NOMs), compensatory quotas, 
certifications, marking of the country of origin or other instruments considered appropriate for the 
purpose of achieving national trade policy  objectives. The reasons why this type of measure is 
imposed have not changed since 2017. For example, Mexico cont inues to prohibit the import of 
certain products, in particular chemicals and drugs, to protect human life and health. Mexico uses 
both automatic licensing (automatic permits) and non -automatic licensing (prior permits). In 
principle, the use of one type o f licence does not exclude the other, i.e. both licences may be 
required to import the same good, since they serve different purposes. Mexico continues to require 
the use of both licences for textiles, footwear and metals.  
15. In 2021 (as in 2017), the general  export tax (IGE) was levied on just two tariff lines 
(two types of petroleum products). It is levied in order to guarantee supplies to the domestic 
market or to protect human health, the environment, fauna, flora and cultural heritage. To these 
same ends,  Mexico regulates exports of certain products through automatic licensing (automatic 
permits) and non -automatic licensing (prior permits). Other types of permit may be required in 
addition to licensing, such as plant or animal health certificates, the heal th certificate for food or a 
certificate issued by the regulatory councils for exports of tequila, mezcal and coffee.  
16. Mexico has continued  to implement, without substantial changes, export promotion 
programmes, through which it offers tariff and tax conces sions, particularly to the manufacturing 
sector. The purpose is to promote productivity and increase competitiveness, thereby enabling 
Mexican products to be further incorporated into the global market. The main programmes remain 
the programme for manufact uring, maquila and export services industry (IMMEX) and the import 
duty drawback programme for exporters. During the period under review, Mexico notified the WTO 
of various export subsidy programmes. Under the IMMEX programme, producers of goods for 
export  or companies providing services for export may import , on a temporary basis,  various WT/TPR/S/429 /Rev.1  • Mexico  
 
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  goods free of general import tax and, where applicable, of anti -dumping or countervailing duties, 
so that these goods may be used in the production of export products. Th ey may also obtain a 
100% tax credit for VAT and/or the special tax on production and services (IEPS). This programme 
continues to be of great importance for Mexican trade. Over the period 2016 -21, firms benefiting 
from the IMMEX programme were on average responsible for 55.8% of exports and 43.3% of 
imports. The main imports and exports were machinery, mechanical appliances or electrical goods 
under HS  chapters  84 and 85.  
17. In addition to the export promotion programmes, Mexico has other programmes to attrac t 
investment and create jobs, a number of which have been notified to the WTO. Most of these 
programmes were already in place and had been notified when the previous review was carried 
out in 2017. These include the sectoral promotion (PROSEC) programmes, under which inputs and 
machinery needed to produce specific goods can be imported under a preferential tariff, 
irrespective of whether the final good is consumed on the domestic market or exported. The only 
change since the previous review was the introduc tion of a programme for the fertilizer sector. As 
of May 2021, a total of 2,487 tariff lines were covered by PROSEC programmes. The most common 
preferential tariff rates in 2021 were 0% and 5%, which were applied to 76.2% and 19.1% of the 
tariff lines cove red, respectively.  
18. In 2020, the Federal Law on Metrology and Standardization (LFMN), which regulated the 
national quality system, was repealed and replaced by the Law on Quality Infrastructure (LIC). 
However, the regulations implementing the LIC have not y et been finalized , and those 
implementing the LFMN continue to be used, unless they conflict with the LIC. S ince the previous 
review , there has been no change to the procedure for preparing, issuing or revising Mexican 
Official Standards (NOMs) (technical regulations) and Mexican Standards (NMXs) ( specifications or 
standards ). In 2017 -21, certain Members posed questions about NOMs in the WTO TBT Committee 
on four occasions. The procedures for preparing sanitary and phytosanitary (SPS) measures are 
also stipulated in the 2020 LIC and in specific laws on the matter. Between 2017 and 2021, six 
specific trade concerns on measures adopted by Mexico were submitted to the WTO SPS 
Committee.  
19. Mexico continues to have two bodies that promote and protect competitio n: the Federal 
Economic Competition Commission (COFECE) and the Federal Telecommunications Institute (IFT). 
Although the law clearly sets out the powers of each of the bodies, conflicts between the COFECE 
and the IFT have arisen in recent years in relation  to their remits, mainly concerning the analysis 
of concentrations in the digital markets. Medicine and electricity prices are still regulated. Retail 
price controls on liquefied petroleum gas (LPG), which had been eliminated in 2017, were 
reintroduced in 2021.  
20. During the review period, the federal government procurement regime has sought to 
promote the use of the consolidated procurement process and framework agreements, with the 
aim of rationalizing public spending and fostering efficiency and transparenc y. However, 
government procurement through the direct awarding of contracts increased substantially in 2020 
and 2021 due to the pandemic. In 2018, the tasks of formulating and implementing government 
procurement policy and administering the online procurem ent platform, which had until then been 
the responsibility of the Ministry of Public Administration, were transferred to the Ministry of 
Finance and Public Credit (SHCP). In general, government procurement procedures remain 
decentralized. However, consolid ated procurement may be carried out by the SHCP. State -owned 
production enterprises (EPEs), Petróleos Mexicanos (PEMEX) and the Federal Electricity 
Commission (CFE) have their own procurement regimes.  
21. The Federal Law on Industrial Property Protection (LFPP I) was promulgated in 2020, which 
strengthened the industrial property rights regime. Few patents were granted to residents during 
the review period. The registration of utility models continues to be the method most commonly 
used by residents to protect t heir inventions; in 2020 the protection period for utility models was 
extended from 10 to 15 years. With regard to enforcement, new preventive measures were 
introduced and administrative dispute proceedings streamlined during the period under review. 
Moreo ver, the protection of copyright and related rights in the digital sphere was strengthened 
through the implementation of new anti -piracy tools. However, the purchase of products that 
infringe intellectual property rights is not penalized, which means that this practice continues to be 
commonplace and incurs economic and tax losses.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  22. The agricultural sector is of great importance to Mexico, not so much because of its 
contribution to GDP (3.8% in 2021), but because around 28 million inhabitants in rural areas rely 
on agricultural activities. It is thus important for social, economic and environmental equity. 
Mexico is also a net importer of agricultural products. The country therefore has a series of support 
programmes for the sector, as well as tariff protecti on levels that are above both the overall tariff 
average (6.7%) and the tariff average for non -agricultural products (5.9%); the protection 
granted to agricultural products (WTO definition) was 13.2% in 2021. On average, the highest 
tariffs by WTO  category  continue to be applied to sugar and confectionery, and to dairy products, 
with tariffs of 30% and 22.1% respectively.  
23. Mexico provides support to the agriculture, livestock and fishery sector through a series of 
programmes. S ince 2019 , Mexico's agricultura l policy has focused even more heavily on achieving 
food self -sufficiency and supporting small producers. To that end, various support programmes 
were merged, others were abolished and new one created. In general, the programmes have 
components and subcomp onents that change from year to year, as provided for in their rules of 
operation. Some of these programmes have been notified as domestic support to the WTO 
Committee on Agriculture and others to the Committee on Subsidies and Countervailing Measures. 
Mexico also notified the WTO that it had granted subsidies to agricultural exports in 2017 and 
2018, but did not grant them over the remainder of the review period.  
24. Competition in all energy sector activities has been permitted since 2013, except in those 
reserved to the State: the exploration and extraction of hydrocarbons, the use of nuclear energy 
to produce electricity, and the transmission and distribution of electricity. However, the energy 
policy since 2017 has sought to further boost the participation of State -owned enterprises in the 
sector by adopting measures to encourage PEMEX and the CFE to participate in the various 
activities in which the private sector is engaged. PEMEX is still the main operator in the 
hydrocarbons sector and the biggest contri butor to Mexico's public purse. However, the company 
is facing financial and operational challenges, which has led the State to take steps to guarantee 
the profitability and ensure the sustainability of the company. Mexico is a major producer of crude 
oil, but its limited capacity to refine the crude oil it extracts means that it exports much of its 
production and imports refined products. One of the main objectives of the sectoral policy is 
therefore to improve refining capacity in order to become self -sufficient.  
25. Since the previous review in 2017, the Mexican financial system has continued to perform 
well. As of 30 March 2022, the financial system in Mexico was composed of 4,973 entities. The 
main financial system intermediary is the commercial (multiple)  banking system, whose assets 
represent 42.3% of GDP. Non -bank financial intermediaries accounted for 34% of assets. Subject 
to a favourable opinion from the Bank of Mexico, the commercial presence of foreign banks is 
permitted through the establishment of  subsidiaries, under conditions of reciprocity, in accordance 
with the provisions of the free trade agreements signed by Mexico and other agreements. No 
restrictions are imposed on the operations of a subsidiary, which may offer the same services and 
produ cts as a domestic commercial bank. Foreign banks are also permitted to establish 
representative offices . The commercial banking system remains highly concentrated. As of 
December 2021, the five largest banks (three of which were foreign -owned) held 67% of assets. 
As in the commercial banking system, Mexico allows for the commercial presence of foreign 
insurance companies through subsidiaries and representative offices. In July 2018, a second stock 
exchange began to operate in Mexico: the Bolsa Institucional  de Valores, S.A. de C.V.  (BIVA) . 
Companies have the option of listing their debt or equity securities on either exchange and their 
securities are traded on both.  
26. The telecommunications market in Mexico is highly concentrated; there is still a dominant 
economic operator, the operations of which are subject to asymmetric regulatory measures in 
order to foster competition among all operators. During the review period, the implementation of 
these measures led to a certain level of competition being achieved in  fixed services. However, the 
same outcome was not seen in the mobile services market.  
27. In the area of transport, Mexico wishes to establish itself as a new gateway for multimodal 
traffic between Asia and the east coast of the United States, and has therefo re begun work on the 
creation of a multimodal transport corridor in the isthmus of Tehuantepec. In the air transport 
sector, between 2017 and 2022, Mexico allowed greater foreign participation in domestic airlines 
(raising the FDI limit from 25% to 49%) an d competition in the jet fuel market. Mexico has also 
continued to expand international air connectivity to encourage tourism and trade; the degree of WT/TPR/S/429 /Rev.1  • Mexico  
 
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  openness of services has been increased in new air services agreements and certain existing 
agreements ha ve been revised. The metropolitan area of Mexico City (CDMX) has been served by 
three international airports since 2022. However, the original project for a new international 
airport in Mexico City was abandoned and, instead, a military base was converted into one. In the 
maritime -port sector, since 2021, all ports have been managed and operated by the State. Prior to 
this, a private operator held the concession for the port of Acapulco, but this concession was not 
renewed. Moreover, foreign participation i n the provision of certain port services is still limited or 
subject to conditions. Despite this, the majority of Mexico's foreign trade and cabotage freight is 
usually transported by foreign vessels.  
28. Tourism is a highly important sector for the Mexican ec onomy. It has traditionally been one 
of Mexico's main sources of foreign exchange. During the pandemic, Mexico did not restrict the 
entry of foreign tourists, thereby becoming one of the world's top tourist destinations in 2020. The 
sector did not receive any governmental support to deal with the effects of the health crisis, 
although it is the biggest recipient of financial aid granted by the federal development bank . 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.1   Sectoral developments in production and employment  
1.1.  During the review period, the Mexican economy grew relatively slowly, exacerbated by fallout 
from the COVID -19 pandemic, leading to a sharp contraction in gross domestic product (GDP) 
in 2020 followed by a  partial recovery in 2021. The authorities responded to the impact of the 
pandemic by implementing a series of measures to promote more orderly market behaviour and to 
help, above all, the families and businesses most affected, particularly micro, small an d 
medium -sized enterprises (MSMEs). Such measures included opening facilities to provide an 
adequate level of liquidity in short -term funding markets, fostering the orderly functioning  of 
financial markets and strengthening credit access channels, along wi th temporary relief from credit 
card payments, a moratorium on principal and interest payments for borrowers whose income 
source was affected by the pandemic, incentives for bank loan restructuring, and implementing 
social programmes and support programmes  for businesses, including the Financial Support 
Programme for Family Microenterprises (see below).1 
1.2.  Regarding the sectoral composition of GDP, while the share of goods production grew during 
the review period (2017 -21), that of services shrank (Table 1.1 ). This reflects the fact that, even 
though all economic sectors were adversely affected by the COVID -19 pandemic, and despite steps 
taken to slow its spread, services were hardest hit.  
1.3.  The GDP share of agriculture increased slightly during the review peri od, from around 3.4% 
of GDP at basic prices in 2017 to 3.8% in 2020 and 2021. The manufacturing share also grew, 
accounting for 18.0% of GDP in 2021, up from 17.4% in 2017. Likewise, the share of mining, 
including hydrocarbons, rose during the period, acco unting for 5.2% of GDP at basic prices in 
2021, compared to 4.1% in 2017, largely reflecting the upturn in the oil sector and the improved 
performance of metallic and non -metallic mineral mining as a share of GDP.  
1.4.  The pandemic took a heavy toll on service output, the GDP share of which shrank from 
60.1% in current prices in 2017 to 58.4% in 2021.2 Hotel and restaurant services , business 
support services, and real estate services were particularly affected. The GDP share of health 
services, however, increased from 2.2% in 2017 to 2.5% in 2021.  
Table 1.1 Basic economic indicators, 2016 -22 (Q1) 
 
2016  2017  2018  2019  2020  2021a 2022 
(Q1)a 
Gross domestic product (GDP)  
Current GDP (MXN  thousand million)  20,129  21,934  23,524  24,446  23,416  26,274  27,644  
Current GDP (USD thousand million)  1,078  1,159  1,222  1,269  1,090  1,296  1,347  
Real GDP, growth rate (%)  2.6 2.1 2.2 -0.2 -8.1 4.8 1.8 
Per capita GDP (MXN)  163,989  176,913  189,750  194,750  183,617  205,268  215,515  
Per capita GDP (USD)  8,786  9,347  9,860  10,110  8,546  10,126  10,502  
By branch of economic activity (percentage of current GDP)  
Primary activities  3.3 3.4 3.4 3.4 3.8 3.8 3.7 
Crop farming , animal breeding and 
raising, forestry, fishing and hunting  3.3 3.4 3.4 3.4 3.8 3.8 3.7 
 Crop farming  2.1 2.2 2.2 2.2 2.4 2.5 2.4 
 Animal breeding and raising  1.1 1.0 1.0 1.0 1.1 1.1 1.1 
 Forestry  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 Fishing, hunting and trapping  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 Services related to agricultural and 
forestry activities  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Secondary activities  29.6 30.9 31.1 30.8 29.7 31.9 34.2 
Mining  3.6 4.1 4.1 4.3 4.0 5.2 6.4 
 
1 Official Journal of 24 and 27 April and of 7 May 2020, respectively; and National Council for Social 
Development Policy Evaluation (CONEVAL), 2020, La política social en el contexto de la pandemia por el 
virus SARS -CoV-2 (COVID -19) en México . Viewed at: 
https://www.coneval.org.mx/Evaluacion/IEPSM/Documents/Politica_Social_COVID -19.pdf . 
2 The authorities noted that the 1.7 percentage point (p.p.) fall in the G DP share of services occurred 
chiefly between 2020 and 2021, following the impact of and partial recovery from the pandemic. Business 
support services also accounted for 0.8 p.p. of the fall. (1.1 p.p. from 2020 to 2021).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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2016  2017  2018  2019  2020  2021a 2022 
(Q1)a 
 Petroleum and gas extraction  2.1 2.6 2.6 2.8 2.1 3.3 4.2 
 Mining of metallic and non -metallic 
minerals  1.1 1.1 1.1 1.1 1.4 1.5 1.5 
 Services incidental to mining  0.4 0.4 0.3 0.4 0.5 0.4 0.7 
Generation, distribution and 
transmission of electricity, supply of 
water and gas  1.5 2.0 2.0 2.2 2.1 1.9 1.8 
Construction  7.4 7.4 7.5 7.1 6.4 6.8 7.0 
Manufacturing  17.2 17.4 17.5 17.3 17.3 18.0 19.0 
 Food industry  3.6 3.5 3.5 3.5 3.8 3.8 4.1 
 Beverages and tobacco industry  1.0 1.0 1.0 1.1 1.1 1.1 1.1 
 Textile inputs and textile finishing  0.2 0.1 0.1 0.1 0.1 0.1 0.1 
 Textile products, other than 
clothing  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 Clothing  0.4 0.3 0.3 0.3 0.2 0.3 0.3 
 Tanning, finishing and 
manufacturing of hides and skins  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 Wood industry  0.1 0.1 0.1 0.1 0.1 0.2 0.2 
 Paper industry  0.3 0.3 0.3 0.3 0.3 0.3 0.3 
 Printing and related industries  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 Petroleum and coal products  0.2 0.6 0.7 0.6 0.6 0.9 1.1 
 Chemical industry  1.3 1.1 1.0 1.0 1.0 1.0 1.1 
 Rubber and plastics industry  0.5 0.5 0.5 0.5 0.5 0.6 0.6 
 Non-metallic mineral products  0.4 0.5 0.4 0.4 0.4 0.4 0.5 
 Basic metal industries  1.0 1.0 1.1 1.0 1.0 1.3 1.4 
 Metal products  0.6 0.6 0.6 0.6 0.6 0.7 0.8 
 Machinery and equipment  0.7 0.7 0.7 0.7 0.7 0.7 0.6 
 Computer, communication, 
measurement equipment, etc.  1.6 1.6 1.6 1.6 1.6 1.6 1.7 
 Electronical equipment and 
accessories, etc.  0.6 0.6 0.6 0.5 0.6 0.6 0.6 
 Manufacture of transport 
 equipment  3.7 3.9 3.9 3.9 3.6 3.5 3.7 
 Furniture, mattresses and blinds  0.2 0.2 0.2 0.2 0.2 0.2 0.2 
 Other manufacturing industries  0.4 0.4 0.5 0.4 0.4 0.5 0.4 
Services  60.8 60.1 59.9 60.0 60.2 58.5 56.7 
 Wholesale trade  9.3 9.4 9.5 9.2 9.3 9.7 9.8 
 Retail trade  9.2 9.4 9.3 9.4 9.3 9.7 9.2 
 Transport, postal and warehousing 
services  6.0 6.1 6.2 6.2 5.5 5.8 6.0 
 Information in mass media  1.6 1.6 1.6 1.5 1.5 1.5 1.4 
 Financial and insurance services  3.7 3.9 4.0 4.0 4.2 3.8 3.9 
 Real estate, rental and leasing of 
movable and intangible property  10.5 10.0 9.7 9.7 10.3 9.6 9.4 
 Professional, scientific and technical 
services  1.9 1.8 1.8 1.8 1.9 1.8 1.7 
 Corporate services  0.6 0.6 0.6 0.6 0.7 0.6 0.6 
 Business support and waste 
management services  3.2 3.3 3.3 3.4 3.6 2.5 0.9 
 Educational services  3.9 3.7 3.6 3.7 3.9 3.5 3.5 
 Health and social services  2.2 2.2 2.2 2.3 2.6 2.6 2.5 
 Recreational, cultural and sporting 
services, etc.  0.4 0.4 0.4 0.4 0.3 0.3 0.3 
 Hotel and restaurant services  2.2 2.2 2.2 2.3 1.4 1.7 2.0 
 Other services except public 
administration  2.0 1.9 1.9 1.9 1.8 1.7 1.7 
 Public administration, etc.  3.8 3.7 3.7 3.6 4.0 3.7 3.7 
Gross value added  93.7 94.5 94.5 94.2 93.7 94.2 94.6 
Net taxes on products  6.3 5.5 5.5 5.8 6.3 5.8 5.4 
Other economic indicators (percentage of current GDP)   
Gross national savings  23.6 22.9 22.7 21.2 19.2 20.2 .. 
Domestic savings  21.4 21.1 20.7 20.8 21.5 19.8 .. 
Employment   
Employment rate (%)  96.2 96.6 96.7 96.5 95.6 95.9 96.5 
Unemployment rate (%)  3.8 3.4 3.3 3.5 4.4 4.1 3.5 
Employment by economic activity (%)   
Crop farming, livestock farming, 
forestry, hunting and fishing  13.1 12.8 12.5 12.2 12.6 12.3 11.5 
Extractive and electricity industries  0.8 0.8 0.8 0.7 0.7 0.7 0.7 
Manufacturing  16.3 16.8 16.8 16.7 16.5 16.5 16.7 
Construction  8.2 8.2 8.2 7.8 7.6 7.9 7.7 
Services  61.0 60.9 61.2 62.0 62.1 62.0 62.7 
 Trade  18.9 18.4 18.7 19.4 19.1 19.2 19.3 WT/TPR/S/429 /Rev.1  • Mexico  
 
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2016  2017  2018  2019  2020  2021a 2022 
(Q1)a 
 Hotel and restaurant services  7.4 7.5 7.5 8.0 7.1 7.5 7.9 
 Transport, communications, postal 
and warehousing services  5.1 5.1 5.3 5.1 5.2 5.1 5.4 
 Professional, financial and 
corporate services  6.9 7.0 7.2 7.1 7.2 7.5 7.7 
 Social services  8.0 8.2 8.1 7.8 8.0 8.4 8.4 
 Miscellaneous services  10.4 10.4 10.2 10.3 10.2 9.9 10.1 
 Government and international 
organizations  4.4 4.3 4.2 4.3 5.1 4.4 3.9 
Not specified  0.5 0.6 0.6 0.6 0.5 0.6 0.6 
Memorandum item        
  
Economically active population (%)  59.8 59.4 59.6 60.1 55.4 58.6 58.6 
Total population (million, end of 
period)  122.7  124.0  124.0  125.5  127.5  128.0  128.3  
.. Not available.  
a Preliminary figures.  
Source:  National Institute of Statistics and Geography (INEGI) and International Monetary Fund (IMF), 
International Financial Statistics (IFS) database.  
1.5.  Even though economic activity p icked up in the first two quarters of 2021, it slowed down in 
the second half of the year.3 The main impact of the pandemic -induced economic contraction on 
the labour market was a sharp drop in the workforce, amid the measures taken to contain the 
pandemi c. Most notably, the average participation rate slipped from 60.2% in 2019 to 57.7% in 
2020, and partially bounced back to 58.5% in 2021. It also led to a jump in the unemployment 
rate from 3.5% of the economically active population in 2019 to 4.4% in 2020 , before coming 
down to 4.1% in  2021. In January 2022, the unemployment rates for men and women stood at 
3.65% and 3.33%, respectively, the former higher than the unemployment rates in the first 
quarter of 2020, the latter slightly lower. While a number of  labour market indicators continued to 
show improvements in the fourth quarter of 2021 compared to the third quarter, in early 2022, in 
view of  a spike in Omicron  variant COVID -19 infections, some of these indicators showed declines, 
which varied by sector of activity. For example, while the labour market participation rate of 
people aged 15 and over showed a gradual recovery during the last quar ter of 2021, averaging 
59.5%, it shrank to  58.3% in January 2022. The labour participation rate also remains well below 
its (pre -pandemic) level of the first quarter of 2020, when it stood at 59.9%. Moreover, although 
underemployment and extended  unemploym ent rates have fallen, they remain at high levels, 
resulting in a labour informality rate of 55.9% in the fourth quarter of 2021, close to levels 
preceding the health emergency.  
1.6.  Following a surge in the second quarter of 2020, largely on account of the red uction in 
employment resulting from the pandemic, labour productivity in the economy as a whole fell 
during the last two quarters of 2020 and in 2021. This reflected a recovery in hours worked at a 
faster pace than the increase in GDP.  
1.7.  As a result of Artic le IV consultations in 2021, in November of that year the International 
Monetary Fund (IMF) noted that the Mexican economy is rebounding from its deepest recession in 
decades, driven by strong US growth and the pandemic -related re -opening of sectors. IMF 
Executive Directors commended the authorities for maintaining economic stability during the 
pandemic, underpinned by strong macroeconomic policies and institutional frameworks. However, 
they emphasized that while the economy continues to recover, there is a  need to safeguard the 
recovery and promote stronger, more inclusive and greener growth. The Directors saw merit in 
additional fiscal support targeting health and education, social safety nets and quality public 
investment, along with enhanced spending eff iciency, and reform of the business strategy and 
governance of State -owned company, Petróleos Mexicanos (PEMEX). They also urged Mexico to 
implement a medium -term tax reform as the economy strengthens, which would help finance 
needed social and public inve stment spending and put the public -debt-to-GDP ratio on a firm 
downward trajectory. The authorities were encouraged to tackle impediments to productivity 
 
3 Bank of Mexico, Informe Trimestr al, octubre -diciembre de 2021 . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/%7B9CE4 F0BD -2CE1-0A7C -9A88-
7FBFC2411A53%7D.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  growth through structural reforms, such as by promoting labour market formality, narrowing 
gender gaps , fostering financial inclusion and improving governance.4 
1.8.  During the review period, Mexico signed three agreements with the IMF under the Flexible 
Credit Line (2017, 2019 and 2021), having made nine arrangements of this type thus far, which 
Mexico intends to treat as precautionary. As noted by the IMF, in recent years, Mexico has been on 
a path of gradually reducing access under its Flexible Credit Line arrangements, and the new 
arrangement continues on this path. The most recent arrangement was signed 
on 19 November  2021, designed for crisis prevention, for two y ears under the Flexible Credit Line, 
and for an amount equivalent to SDR (special drawing rights) 35,650.8 million  (about USD 50 
billion, equivalent to 400% of Mexico's quota). Mexico also cancelled the previous arrangement. 
The IMF notes that the authorit ies have successfully maintained external, financial, and fiscal 
stability, despite the pandemic -related challenges. Nevertheless, the Mexican economy remains 
exposed to external risks, which could increase yields, risk premia, and capital outflows from 
Mexico. Therefore, the new arrangement under the Flexible Credit Line plays a role in supporting 
the macroeconomic strategy by providing insurance against tail risks and bolstering market 
confidence. The previous arrangement under the Flexible Credit Line of  22 November 2019 was 
approved for an access amount equivalent to SDR 44,563.5 million , equivalent to USD 61 billion.5 
The arrangement of  29 November  2017 was approved for an original access amount equivalent 
to SDR 62,388.9  million (USD 88 billion)6, which, at the request of the Mexican authorities, was 
reduced to SDR  53,476.2  million (USD 74 billion) on 26 November 2018.  
1.9.  As regards the OECD, in its most recent report published in February 2022, it commended 
Mexico for safeguarding macroeconomic stabilit y amid the COVID -19 pandemic through its solid 
macroeconomic policies, underpinned by innovative debt management, sound monetary policy and 
a flexible exchange rate regime.7 The OECD notes that Mexico's potential to be a high -growth 
economy is large, havi ng transitioned from an oil dependent economy in the early 1990s to a 
manufacturing hub integrated in global value chains. However, it notes that such potential remains 
unrealized and growth over the most recent decades has been low. The OECD recommendatio ns to 
help realize this potential, include: further improving macroeconomic policies, by increasing public 
investment over the medium -term, and spending on social programmes, education and health, 
with a special focus on low -income households; broadening t ax bases by phasing out exemptions 
and by reducing informality; introducing a long -term debt anchor and widening the share of public 
spending covered by the spending rule; establishing an independent fiscal council; strengthening 
PEMEX and other SOEs' gove rnance; improving regulatory stability; strengthening the credit 
registry system; strengthening competition; promoting the formalization of firms; establishing a 
federal unemployment insurance scheme; and promoting renewables generation, among others.8 
1.1.2   Measures to address the pandemic  
1.10.  The Mexican Government implemented a series of measures to mitigate the adverse 
economic effects of the COVID -19 pandemic. The measures were mainly aimed at providing 
support for families and enterprises, in particular MSMEs,  increasing credit and the liquidity 
available to the economy, and accelerating the implementation of the budget. Mexico did not 
implement substantial support packages, as other countries did, but instead opted to remain on 
the path of fiscal and financial  stability. However, this came at a high price in terms of economic 
contraction.  
 
4 IMF Press Release No.  21/323: IMF Executive Board Concludes 2021 Article IV Consultation with 
Mexico , 5 November 2021.  Viewed at:  https://www.imf.org/en/News/Articles/2021/11/05/pr21323 -mexico -
imf-executive -board -concludes -2021-article -iv-consultation -with-mexico . 
5 IMF Press Release No.  19/431: IMF Executive Board Approves New Two -Year US$61 Billion Flexible 
Credit Line Arrangement with Mexico , 25 November 2019. Viewed at: 
https://www.imf.org/en/News/Articles/2019/11/25/pr19431 -mexico -imf-executive -board -approves -new-two-
year-us-61-billion -fcl-arrangement . 
6 IMF Pres s Release No. 17/459: IMF Executive Board Approves New Two -Year US$88 Billion Flexible 
Credit Line Arrangement with Mexico , 30 November 2017. Viewed at: 
https://www.imf.org/en /News/Articles/2017/11/30/pr17459 -mexico -imf-executive -board -approves -new-two-
year-us-88-billion -fcl-arrangement . 
7 OECD (2022), OECD Economic Surveys: Mexico , February 2022. Viewed at: https://read.oecd -
ilibrary.org/economics/oecd -economic -surveys -mexico -2022_2e1de26c -en#page11 . 
8 OECD (2022), OECD Economic Surveys: Mexico , February 2022. Viewed at: https://read.oecd -
ilibrary.org/economics/oecd -economic -surveys -mexico -2022_2e1de26c -en#page14 . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  1.11.  The IMF estimates that the measures introduced by Mexico directly to address the health 
crisis represented an increase in public spending amounting to 0.4% of GDP in 2020. Oth er 
measures adopted included: advancing payments of old -age and disability pensions by eight 
months; expediting procurement processes and VAT reimbursements; granting loans to 
enterprises and workers in both the formal and informal sector (see below); and providing liquidity 
support and guarantees from the development bank for a total of MXN 257.1 billion. The IMF 
estimates that "above -the-line" budgetary measures represented 0.7% of GDP in 2020, while 
"below -the-line" measures were equivalent to 1.2% of GD P.9 This support was limited, in 
comparison with that received by other economies.  
1.12.  The measures implemented to support MSMEs included the Financial Support Programme 
for Family Microenterprises and the two amendments thereto, published in the Official Jou rnal of 
24 and 27 April and 7 May, respectively, which granted direct financial support to formal and 
informal enterprises in urban areas.10 The Financial Support Programme for Family 
Microenterprises was a response by the federal govern ment to the economi c crisis resulting from 
the pandemic, to ensure the sustainability of microbusinesses, enterprises, self -employed persons, 
service providers, domestic workers and independent workers, in order to safeguard their 
economic activity and to maintain the jobs c reated. In 2020, the Programme comprised two 
schemes, with specific eligibility criteria and requirements: (a) the Family Microenterprise Scheme 
(Modalidad Microempresa Familiar ), the criteria for which were: preferably to be part of the 
Wellness Census ( Censo para el Bienestar ); to have a non -agricultural microbusiness, or, 
otherwise, to be a self -employed person or an individual providing services, that has been 
operating for at least six months; to be located in certain municipalities or territorial dema rcations; 
and to have work premises, a work establishment or a work tool; and (b) the Solidarity Support 
Scheme ( Modalidad Apoyo Solidario a la Palabra ), for which solidarity -based enterprises 
(registered enterprises which, at 15 April 2020, had the same n umber of employees as the 
average number of employees in the first quarter of 2020) in the formal sector, and domestic and 
independent workers, were considered eligible.  
1.13.  In 2021, three schemes were implemented under the Programme, which aimed to help 
maint ain economic activities, and which mainly benefited enterprises that met their fiscal and 
employer obligations in accordance with the following: (a) the Family Microenterprise Scheme, the 
eligibility criteria for which were similar to those in 2020; (b) th e Compliant Enterprises Scheme 
(Modalidad Empresas Cumplidas ), aimed at formally registered microenterprises that had retained, 
at 30 November 2020, at least the average number of employees registered with the Mexican 
Social Security Institute (IMSS) durin g the period from August to October 2020 for 
microenterprises engaged in essential activities, and at least 85% for microenterprises engaged in 
non-essential activities; (c) the Women's Solidarity Scheme, aimed at women over 18 years of age 
who were regist ered under one of the active fiscal regimes and who did not receive financial 
support under the programme in the fiscal year 2020.  
1.14.  The loans granted in both financial years amounted to MXN 25,000, with rates adjusted 
according to the size of the enterprise  and the support scheme, with reimbursement in 33 monthly 
payments as from the fourth month. The authorities estimate that the programme 
delivered  1,396,251 grants between January and December 2020 for a total 
of MXN 34,906.2  million. In 2021, the programme approved 61,650 grants for a total 
of MXN 1,541.25 million.  
1.15.  Furthermore, in alliance with the Rural Sector Capitalization and Investment Fund (FOCIR), 
in 2020, the Ministry of Economic Affairs  developed and implemented the f irst call for applications 
under the Emergency Programme for Economic Recovery UDP -FOCIR11,which granted loans of up 
to MXN 180,000 at an ordinary annual rate of 10%, to formal enterprises registered under the tax 
inclusion regime (RIF) or the business reg ime (RAE) with up to 50 employees, in order to cover 
 
9 IMF, Policy Responses to COVID -19. Viewed at: https://www.imf.org/en/Topics/imf -and-
covid19/Policy -Responses -to-COVID -19#. 
10 Official Journal of 24 and 27 April and 7 May 2020, respectively (Official Journal, 2020g; 
Official  Journal, 2020i; Official Journal, 2020j) and National Council for Social Development Policy Evaluation 
(CONEVAL), 2020, La política social en el contexto de la pandemia por el virus SARS -CoV-2 (COVID -19) en 
México . Viewed at: https://www.coneval.org.mx/Evaluacion/IEPSM/Documents/Politica_Social_COVID -19.pdf . 
11 Government of Mexico, Fondo de Capitalización e Inversión del Sector Rural. Acciones y Programas. 
Programa Emergente de Reactivación Económica UDP FOCIR. Viewed at: https://www.gob.mx/focir/acciones -
y-programas/programa -emergente -de-reactivacion -economica -udp-focir. WT/TPR/S/429 /Rev.1  • Mexico  
 
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  their short -term requirements in terms of liquidity, working capital and fixed assets (machinery 
and equipment). The following sectors and production activities were considered as priority for this 
programme: retail trade; accommodation and food and beverage services; the restaurant sector; 
the manufacturing industry; and the dough and tortilla industry. In 2021, the second call for 
applications under the programme was published and the following federati ve entities participated: 
Campeche, Chihuahua, Ciudad de México, Estado de México, Guanajuato, Michoacán, Morelos, 
Puebla, Quintana Roo, Tabasco and Tamaulipas. In November 2021, authorization was given for 
the programme to be extended until 31 March 2022,  in view of the economic situation resulting 
from the health emergency. On 3 February 2022, a third call for applications was published, in 
which the Secretariats of Economic Development or their equivalent in the federative entities of 
the country were in vited to participate in the Emergency Programme for Economic Recovery UDP -
FOCIR, to combine efforts on a 1:1 (one to one) ratio between the state governments and the 
federal government . The resources will be channelled in order to grant financing of up to MXN 
250,000 to formal MSMEs which have between one and 50 employees, and which are engaged in 
production activities with the potential to contribute to the economic recovery of the State.  
1.16.  Another initiative to assist MSMEs was the introduction of the Solid arity Market ( Mercado 
Solidario ), which is a government platform providing a virtual space where micro, small and 
medium -sized enterprises can find local markets in which to carry out transactions, outside the 
platform, with potential consumers of their pr oducts and services. This project is part of the 
interministerial response of the Mexican Government to the health and economic emergency.12 The 
government also introduced a loan scheme (CRÉDITOS FONACOT) through the National Fund for 
Workers' Consumption (FONACOT), to support consumption during the health emergency. The 
loan, which amounts to MXN 10,000, will be paid in 33 monthly instalments with a grace period of 
three  months. The total annual cost of the loan is 10%. Beneficiaries must have worked for a t 
least one year, on an indefinite -term or permanent contract, in the same enterprise or place of 
work, which must be affiliated with FONACOT.13 
1.17.  The FOVISSSTE (Housing Fund of the Social Security and Social Services Institute for State 
Workers) loan scheme  has granted targeted assistance to workers employed in the service of the 
State and their families during the COVID -19 health emergency. The release of financing is part of 
the COVID -19 Emergency Economic Plan approved by FOVISSSTE, which, inter alia , provides for 
the suspension, until further notice, of the deadlines established for borrowers to choose their 
home and sign the property deed. The plan includes credit transaction payments to beneficiaries 
with financing, and for providers, as well as a guara ntee for the continuity of the origination and 
formalization of loans, the validation of appraisals and the release of new financing. The support 
was allocated by means of a draw. In order to participate, it is necessary to be a government 
worker, or a ret iree or pensioner registered with the Social Security and Services Institute for 
Government Workers (ISSSTE), and to have no existing personal loans, or any debts with ISSSTE 
in this regard. The support consists of an 18% increase in the amount of the ordi nary loans issued 
by ISSSTE, with an interest rate lowered by 1.5%.14 A programme entitled Construyes Tu Casa  
(Build Your House), which is a credit line enabling beneficiaries to build a home to meet their 
needs, was also implemented. Under this scheme, lo ans of up to MXN 1,133,000 are granted, with 
an annual interest rate of between 4% and 6% and a time frame of one year to complete the 
property.  
1.18.  Other measures implemented include the partial or total deferral of capital and interest 
payments with the supp ort of the National Banking and Securities Commission for loans classified 
as current at 28 February 2020. This support applies to mortgage -backed housing loans, revolving 
and non -revolving credit for natural persons, such as: car loans, personal loans, pa yroll loans, 
credit card loans and microcredit; and trade credits for legal or natural persons engaged in 
different types of business activity, including agriculture. The support, which consists of freezing 
payments with no interest charges, was granted fo r up to four months, with the possibility of an 
 
12 Government of Mexico, COVID -19 Medidas Económicas. Acciones y Programas. Mercado Solidario.  
Viewed at: https://www.gob.mx/covid19medidaseconomicas/acciones -y-programas/mercado -solidario . 
13 Information from the Government of Mexico. Viewed at: 
https://www.gob.mx/covid19medidaseconomicas/acciones -y-programas/creditos -fonacot . 
14 Information from FOVISSSTE. Viewed at: https://www.gob.mx/fovissste/articulos/libera -fovissste -20-
000-creditos -mas-en-beneficio -de-los-trabajadores -de-la-economia -y-del-sector -vivienda -241018 . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  extension for two  additional months, for the total amount payable including incidentals.15 
Furthermore, the Ministry of Finance and Public Credit (SHCP) extended the deadline for the 
declaration of natural pe rsons under the Law on Income Tax (ISR) until 30 June 2020. The Bank of 
Mexico (Banxico) also introduced a series of liquidity and credit support measures (see below).  
1.2  Recent Economic Developments  
1.2.1   Real sector  
1.19.  During the period 2017 -21, Mexico's real GDP gr ew at a real average annual rate of 
barely  0.2%. Excluding 2017, the period saw a real average annual decrease of -0.46%. This 
result was greatly influenced by the effects of the COVID -19 pandemic, which caused  GDP to 
contract  by 8.2% in 2020. This contrac tion was one of the greatest in history and came on the 
back of an already depressed economy in 2019. In spite of this, Mexico's nominal per capita 
income remained around USD 10,000 throughout most of the review period.  
1.20.  During the period between 2016 and 2 018, economic growth in Mexico continued to be 
driven mainly by domestic demand, in particular private consumption, as growth in gross capital 
formation was weak, and public spending remained tightly controlled. The sharp decline in 
economic growth experie nced from mid -2018, which led to a slight contraction in real GDP in 
2019, was partly due to weak domestic demand, in particular the steep drop in gross capital 
formation, a contraction in public spending, and a slowdown in private consumption, which was 
only partially offset by a positive contribution from net exports.  
1.21.  In 2020, the Mexican economy contracted by 8.2%, as a result of the negative impact of 
the COVID -19 pandemic on production, consumption and employment.16 The pandemic had a 
strong adverse effect on domestic demand, particularly on gross capital formation and private 
consumption, as government spending increased modestly in real terms. Net exports made a 
positive contribution to GDP, as imports fell at a fa ster rate than exports.  
1.22.  In 2021, the Mexican economy rebounded, with GDP growth of around 4.8%, despite a 
stagnation of GDP in the fourth quarter following a contraction in the third quarter, compared with 
the second quarter. In the fourth quarter of 2021,  services contracted while manufacturing exports 
and oil exports rebounded as a result of an increase in sales of products other than crude oil. The 
value of imports continued to grow, with increases recorded in imports of consumer, intermediate 
and capita l goods.17 
1.23.  Regarding growth prospects, as a result of relatively weak growth in the fourth quarter 
of 2021, which led to a lower base for growth for 2022, Banxico downgraded its growth forecast 
ranges for economic activity in 2022 and 2023. The Bank of Mex ico expects Mexico's GDP to grow 
by between 1.6% and 3.2% in 2022, with a point estimate of 2.4%.18 GDP growth of between 
1.9% and 3.9% is expected for 2023, with a point estimate of 2.9%. It is expected that, during 
the course of 2022, economic activity w ill return to a path of gradual growth, supported by both 
external and domestic demand. However, the performance of Mexico's economy will continue to be 
shaped by the evolution of the pandemic. Banxico projects that, if GDP in 2022 grows at a rate 
close to  the upper end of the estimated range, in the third quarter of 2022, economic activity will 
return to the level observed at the end of 2019. If the growth rate is close to the point estimate for 
2022, this recovery will occur around the fourth quarter of t he year, and if it is close to the lower 
 
15 National Banking and Securities Commission (CNBV), Diferimiento parcial o total de pagos de capital 
y/o intereses hasta por 4 meses.  Viewed at: https://iprofi.com.mx/bancos -mexicanos -diferir -pagos -e-
intereses . 
16 Bank of Mexico (2021), Compilación de Informes Trimestrales correspondientes al año 2020. Viewed 
at: https://www.banxico.org.mx/publicaciones -y-prensa/informes -anuales/%7B5C76A1AD -7080-9B9B -B2E7-
2D97BFDD5B34%7D.pdf . 
17 Bank of Mexico (2022), Resumen Ejecutivo del In forme  Trimestral, octubre -diciembre 2021 . Viewed 
at: https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestra les/%7BFA4C74D3 -AE21-FDAD -
8A49-989F1F44F671%7D.pdf . 
18 Bank of Mexico (2022), Informe Trimestral, octubre -diciembre 2021. Viewed at:  
https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/%7B9CE4F0BD -2CE1-0A7C -
9A88-7FBFC2411A53%7D.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  end of the estimated range, the level observed at the end of 2019 will be achieved in the second 
quarter of  2023.19 
1.24.  Private consumption grew faster than GDP every year in the review period, with the 
exception of 2020, when it contracted even more than GDP, by around 10.5% (Table 1.2). After 
recovering in  2016, growth in private consumption sharply declined between 2017 and 2019, in 
line with GDP growth. Household consumption continued to be buoyed by the positive trends in 
employment, with a relatively low unemployment rate (although under -employment remained 
high), developments in real wages, and facilitated access to credit. In 2020, levels of private 
consumption plummeted due to the interruption in economic activity caused by the pandemic, as 
well as the reduced willingness of the population to spend and its preference to save due to 
economic uncertainty. The domestic savings rate increased from 17.4% of GDP in the first quarter 
of 2020 to 25.4% in t he third quarter, and 24.4% in the fourth quarter, before declining in 2021, 
accounting for 21.3% of GDP in the fourth  quarter of 2021. In line with the reduction in spending 
levels and the increase in disposable income, private consumption expenditure inc reased by 7.4% 
in 2021, well above the increase in real  GDP (4.8%).20 Despite the rebound, at the end of 2021, 
private consumption was below the level recorded in February 2020. Although the consumption of 
goods continued to increase and was above the leve ls observed prior to the pandemic, the 
consumption of services remained very low. Family remittances continued to be a major source of 
financing for consumption, totalling  USD 51,586  million or 4% of GDP in  2021.  
Table 1.2 Structure of GDP by expenditure, 2016 -21 
 2016  2017  2018a 2019a 2020a 2021a 
As a percentage of current GDP  
Private consumption  65.5 65.2 64.8 64.9 63.0 64.5 
Government consumption  12.0 11.6 11.6 11.4 12.5 11.8 
Gross fixed capital formation  22.8 22.1 22.0 20.6 18.9 19.8 
Changes in inventory  0.8 0.8 0.7 0.6 0.2 0.4 
Exports of goods and services  37.0 37.7 39.3 38.8 39.5 40.3 
Imports of goods and services  39.0 39.5 41.3 39.1 37.5 41.8 
Statistical discrepancy  0.8 2.1 3.0 2.8 3.1 4.8 
Real growth rate (based on 2013 prices)  
Private consumption  3.7 3.2 2.6 0.4 -10.5 7.4 
Government consumption  2.6 0.7 2.9 -1.8 0.1 1.0 
Gross fixed capital formation  0.8 -1.2 0.8 -4.7 -17.8 10.0 
Changes in inventory  -6.3 -2.3 -8.9 -22.6 -76.0 150.4  
Exports of goods and services  3.6 4.2 6.0 1.5 -7.3 6.9 
Imports of goods and services  2.9 6.4 6.4 -0.7 -13.7 13.7 
Statistical discrepancy  n.a. n.a. 47.8 13.0 48.9 -1.8 
n.a. Not applicable . 
a Preliminary figures.  
Source:  National Institute of Statistics and Geography (INEGI).  
1.25.  Gross fixed capital formation contracted in real terms during the period under review, with a 
cumulative decline of 5.1% between 2017 and 2019, followed by a significant contraction of 
17.8% in 2020. Even though private in vestment picked up in 2021, with an increase of 11.2%, at 
the end of 2021, it was almost 4% below the level recorded in February 2020. This result reflects 
in particular the low share of investment in construction, which, in December 2021, was still 7.8% 
below the level observed before the pandemic, while the share in machinery and equipment 
recovered and, in December, was above the pre -pandemic level, in line with the seasonally 
adjusted series of the monthly indicator of gross fixed investment. Exports gr ew at a real average 
annual rate of 2% in the period 2017 to 2021, which was similar to the rate for imports of goods 
and services. Both  exports and imports contracted significantly during the pandemic, and 
rebounded in 2021 . 
 
19 Bank of Mexico (2022), Informe Trimestral, octubre -diciembre 2021 . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/%7B9CE4F0BD -2CE1-0A7C -9A88-
7FBFC2411A53%7D.pdf . 
20 Bank of Mexico (2022), Informe Trimestral, octubre -diciembre 2021 . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/%7B9CE4F0BD -2CE1-0A7C -9A88-
7FBFC2411A53%7D.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  1.2.2   Fiscal policy  
1.26.  The Ministry of Finance and Public Credit is responsible for fiscal policy. The Federal Budget 
and Treasury Accountability Law and its amendments, the most recent being of 27 February 2022, 
is the most important fiscal legislation.21 This Law requires the Federal Executiv e to submit a draft 
Revenue Law and a draft Expenditure Budget for approval by Congress each year. The Federal 
Budget and Treasury Accountability Law contains provisions on fiscal discipline and defines 
budgetary balance as the key objective of the public sector. In exceptional circumstances the 
Ministry of Finance and Public Credit can put forward a budget that is in deficit. However, in such 
cases the Ministry must inform Congress of the specific amount of funding needed to cover the 
deficit with the corr esponding justifications, and specify the actions and number of fiscal years 
needed to restore the fiscal balance. Overall, the projected revenue and expenditure amounts 
contained in the draft and the Expenditure Budget are expected to help achieve the ann ual target 
for the public -sector borrowing requirement (PSBR). At the close of the financial year, any 
deviation from the PSBR target of more than the equivalent of 2% of the total approved net 
expenditure must be justified by the Ministry of Finance and P ublic Credit in the last quarterly 
report of the financial year. Investment expenditure by Petróleos Mexicanos (PEMEX), and its 
subsidiary production enterprises is not taken into account in balancing the budget.  
1.27.  The Federal Budget and Treasury Accountabil ity Law requires the estimated amount of oil 
revenues to be included in each Revenue and Expenditure Budget Law. Should oil revenues decline 
owing to a fall in oil prices during the financial year, stabilization funds may be drawn down; but 
when these run out, expenditure cuts must be made. Adjustment mechanisms are also contained 
in the Federal Budget and Treasury Accountability Law.  
1.28.  The Federal Budget and Treasury Accountability Law was amended a number of times 
during the review period. The amendment of November 2019 was introduced through the Federal 
Law on Republican Austerity.22 The purpose of this Law is to regulate the austerity measures to be 
observed in the exercise of federal public spending and contribute to the sound management of 
public resourc es. Its provisions apply to all departments, entities, bodies and other agencies 
comprising the Federal Public Administration.23 The objectives of the Law include establishing 
republican austerity as a fundamental value and guiding principle of the Mexican  public service; 
determining the basis for the application of such policy; and establishing measures to generate 
savings in public spending in order to direct resources to meet general needs. It is the 
responsibility of each public body to comply with the Law. The Ministry of Public Administration of 
the Federal Executive and Ministry of Finance and Public Credit have the authority to interpret the 
Law. The austerity measures of the Federal Law on Republican Austerity should preferably ta rget 
non-priority current expenditure, and avoid reducing investment in responding to emergencies and 
natural or human -caused disasters. The Law provides that in the acquisition of movable and 
immovable property, its lease or the procurement of services an d public works, the highest level of 
economy, efficiency and functionality must be sought, in accordance with the principles of 
austerity. Procurement, leasing and services must, as a general rule and as a matter of priority, be 
awarded through public tend ers, and exceptions to this rule must be fully justified. The Ministries 
of Finance and Public Credit and of Public Administration, in their respective areas of competence, 
shall issue guidelines for the procurement of goods and services for general use by  public bodies, 
on a consolidated basis, to achieve optimum prices, quality and timeliness. Public bodies shall 
adjust their organizational and employment structures in accordance with the principles of 
rationality and republican austerity, thereby elimina ting duplication.  
1.29.  The Law contains a raft of austerity measures: it prohibits the purchase or lease of luxury 
vehicles or vehicles the commercial value of which exceeds 4,343 current daily Units of Measure 
 
21 The most recent amendment was published in the Official Journal of 30  December  2015.  
22 Decree issuing the Federal Law on Republican Austerity, and amending and adding various provisions 
of the General Administrative Accountability Law and the Federal Budget and Treasury Accountability Law 
(Official Journal of 19 November 2019).  
23 In the absence of any express provision in th is Law, the Federal Budget and Treasury Accountability 
Law, the Law on Government Procurement, Leases and Services, the Law on Public Works and Related 
Services, the Law on the Organization of the Federal Public Administration, the Federal Law on Administr ative 
Procedures, and the General Administrative Accountability Law, in that order, shall be applied on a 
supplementary basis and where appropriate (Article 2 of the Federal Law on Republican Austerity).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  and Update for the transport and transfer of publi c servants.24 It also prohibits unnecessary office 
expenses. Furthermore, the Law prohibits the constitution or execution of trusts or mandates in 
the areas of health, education, law enforcement, social security and public security without prior 
authorizat ion from the Ministry of Finance and Public Credit. All trusts, funds, mandates or similar 
contracts in receipt of public resources in the Centralized Federal Public Administration, without 
exception, must be constituted by the Ministry of Finance and Publ ic Credit and report on a 
quarterly basis. The Law provides for the creation of an Evaluation Committee to promote and 
evaluate the austerity policies and measures of public bodies.  
1.30.  In 2020, the Federal Budget and Treasury Accountability Law was amended in  order to 
implement support measures in response to the COVID -19 pandemic and other emergency 
situations. The Ministry of Finance and Public Credit may authorize expenditure beyond that 
approved in the Expenditure Budget, using any surpluses resulting from  the revenues authorized 
in the Revenue Law or from surpluses in the bodies' own revenue. It also stipulates that the draft 
Expenditure Budget shall include provisions for carrying out preventive actions or executing 
programmes and projects to deal with da mage caused by natural phenomena. It further provides 
that 20% of transfers made from the Mexican Petroleum Fund for research on hydrocarbons and 
energy sustainability be used, through the Ministry of Energy, to support research activities carried 
out by t he National Hydrocarbons Commission to identify areas with hydrocarbon potential, and to 
support scientific research, technological development and innovation projects in the exploration, 
extraction and refining of hydrocarbons, and petrochemicals producti on; 15% for research 
activities of the Mexican Petroleum Institute; and 65% to finance projects on renewable energy 
sources, energy efficiency, the use of clean technologies and the diversification of primary energy 
sources.25 
1.31.  The federal government introd uced a number of fiscal measures to attenuate  the health and 
economic effects of the COVID -19 pandemic, which can be classified into three main groups: 
(a) prevention and response to the health emergency; (b) support for Mexican households and 
businesses, particularly those in vulnerable sections of the population; and (c) support for states 
and municipalities. Banxico initially estimated the total amount of these measures to 
be MXN 242,000 million or 1% of GDP. Resources allocated to the health sector acco unted for 
0.16% of GDP; support to households and businesses 0.76%; and the advance of federal transfers 
to states and municipalities 0.08%.26 A more recent IMF estimate takes the total amount of these 
measures to MXN 498,955 million or 2% of GDP. Resources to the health sector accounted for 
0.45% of GDP; support to households and businesses 0.21%; and measures to stimulate the 
liquidity of the economy 1.25%.27 
1.32.  Cuts in non -priority expenditure were also introduced to avoid excessive public spending 
increases. The Decree establishing austerity measures to be observed by federal government 
departments and bodies using criteria indicated therein, es tablishes: a progressive reduction in the 
 
24 The Unit of Measure and Update (UMA) is a unit of account calculated by the National Institute of 
Statistics and Geography, which issues the daily, monthly and annual value of the unit. The daily value of 
the UMA as of 1 February 2022 was MXN 96.22, the monthly value was MXN 2,925.09 and the annual value 
was MXN 35,101.08 (Official Journal of 10 January 2022). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5640427&fecha=10/01/2022#:~:text=Con%20base% 20en
%20lo%20anterior,partir%20del%201%C2%BA%20de%20febrero . 
25 Decree amending and repealing various provisions of the Law for the Protection of Human Rights 
Defenders and Journalists; Law on International Cooperation for Development; Hydrocarbons Law; Law on the 
Electricity Industry; Federal Budget and Treasury Accountability Law; General Law on Civil Protection; Organic 
Law of the National Agricultural, Rural, Forestry and Fisheries Development Bank; Law on Science and 
Technology; Customs Law; Law Regulati ng the Railway Service; General Law on General Physical Exercise and 
Sport; Federal Law on the Film Industry; Federal Law on Duty; Law on the Mexican Petroleum Fund for 
Stabilization and Development; Law on Biosafety of Genetically Modified Organisms; Gene ral Law on Climate 
Change; General Law on Victims and repeal of the Law creating the trust for the administration of the Social 
Support Fund for Former Mexican Migrant Workers (Official Journal of 6 November 2020). Viewed at: 
https://www.diputados.gob.mx/LeyesBiblio/ref/lfprh.htm . 
26 Bank of Mexico, Políticas Económicas Consideradas en México para Enfrentar el Panorama Adverso 
Generado por la Pandemia de COVID -19. Extracto del Informe Tri mestral Enero - Marzo 2020, Recuadro 7, 
pp. 81-85, mayo 2020 . Viewed at: https://www.banxico.org.mx/publicacion es-y-prensa/informes -
trimestrales/recuadros/%7B455A13D4 -524F-84CE-704E-8045ED092A0C%7D.pdf . 
27 IMF (2021), Fiscal Monitor Database of Country Fiscal Measures in Response to the COVID -19 
Pandemic . IMF Fiscal Affairs Department, October. Viewed at : https://www.imf.org/en/Topics/imf -and-
covid19/Fiscal -Policies -Database -in-Response -to-COVID -19. WT/TPR/S/429 /Rev.1  • Mexico  
 
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  salaries of senior public officials by up to 25%; that 75% of the available budget for general 
services and materials and supplies not be used; and that government actions and spending be 
postponed, with the except ion of priority programmes.28 The measures remained in force 
until 31 December  2020.  
1.33.  Mexican federal government finances improved between 2018 and 2019, which saw a 
primary surplus and a deficit of around 2% of GDP. Efforts were made to reduce the deficit by 
means of the Federal Law on Republican Austerity. However, due to the pandemic -induced 
economic recession, revenue collection suffered and spending increased, albeit modestly, to 
mitigate the effects of the COVID -19 pandemic on the most vulnerable segme nts of the 
population. The federal government deficit stood at 2.5% and 3.1% of GDP in 2020 and 2021, 
respectively, while the primary deficit was 0.1% and 1.1% of GDP, respectively (Table 1.3).  
Table 1.3 Balance of the federal government , 2016 -21 
(Percentage of GDP)  
 2016  2017  2018  2019a 2020a 2021a 
Total expenditure  20.8 18.5 18.6 18.4 20.0 19.6 
 Programmable expenditureb 15.4 13.0 12.7 12.6 13.9 14.1 
 Current expenditure  5.0 4.7 4.7 4.4 4.8 4.5 
 Personal servicesc 4.0 3.7 3.7 3.6 3.9 3.7 
 Materials and supplies  0.1 0.1 0.1 0.1 0.1 0.1 
 General and other services  0.9 0.8 0.9 0.8 0.7 0.7 
 Capital expenditure  2.8 1.4 0.9 1.0 0.9 1.8 
 Physical investment  0.6 0.4 0.5 0.4 0.5 0.4 
 Movable and immovable property  0.1 0.1 0.0 0.0 0.0 0.0 
 Public works  0.4 0.3 0.2 0.2 0.2 0.1 
 Other outgoings  0.1 0.1 0.2 0.1 0.3 0.2 
 Financial investment  2.2 0.9 0.5 0.6 0.5 1.4 
 Subsidies and transfers  7.6 7.0 7.1 7.2 8.2 7.8 
 Currentd 6.2 5.8 5.9 6.2 6.9 6.7 
 Capital  1.4 1.2 1.2 1.0 1.3 1.1 
 Non-programmable expenditure  5.4 5.5 5.9 5.8 6.1 5.5 
 Shareholdings  3.4 3.5 3.6 3.6 3.6 3.5 
 Arrears from prior fiscal years ( Adefas ), othere 0.1 0.1 0.3 0.1 0.1 0.0 
 Of current expenditure  0.1 0.1 0.1 0.0 0.0 0.0 
 Of capital expenditure  0.1 0.0 0.2 0.0 0.0 0.0 
 Other  0.0 0.0 0.0 0.0 0.0 0.0 
 Financial cost  1.8 1.9 2.0 2.2 2.4 2.0 
 Internal  1.5 1.6 1.7 1.8 2.0 1.7 
 External  0.4 0.3 0.3 0.3 0.4 0.3 
Total revenue  17.7 17.5 16.5 16.4 17.5 16.4 
 Tax 13.5 13.0 13.0 13.1 14.3 13.6 
 Income tax (ISR)  7.1 7.2 7.1 6.9 7.5 7.2 
 Flat-rate business tax (IETU)  0.0 0.0 0.0 0.0 0.0 0.0 
 Tax on cash deposits (IDE)  0.0 0.0 0.0 0.0 0.0 0.0 
 Income tax levied on contractors and allocation 
 holders  0.0 0.0 0.0 0.0 0.0 0.0 
 VAT 3.9 3.7 3.9 3.8 4.2 4.3 
 Special tax on production and services (IEPS)  2.0 1.7 1.5 1.9 2.0 1.5 
 IEPS gasoline and diesel  1.4 1.0 0.8 1.2 1.3 0.8 
 IEPS other than gasoline and diesel  0.7 0.7 0.7 0.7 0.7 0.7 
 Foreign trade taxes  0.3 0.2 0.3 0.3 0.2 0.3 
 Imports  0.3 0.2 0.3 0.3 0.2 0.3 
 Exports  0.0 0.0 0.0 0.0 0.0 0.0 
 Oil revenues tax (IRP)f 0.0 0.0 0.0 0.0 0.0 0.0 
 Tax on hydrocarbon exploration and extraction 
 activities (IAEEH)g 0.0 0.0 0.0 0.0 0.0 0.0 
 Otherh 0.2 0.2 0.2 0.2 0.3 0.3 
 Non-tax 4.2 4.5 3.4 3.3 3.2 2.9 
 Transfers from the Mexican Petroleum Fund for 
 Stabilization and Development (FMPED)i 1.5 2.0 2.3 1.8 0.8 1.4 
 Duties  0.3 0.3 0.3 0.3 0.3 0.3 
 Hydrocarbons  0.0 0.0 0.0 0.0 0.0 0.0 
 Other  0.3 0.3 0.3 0.3 0.3 0.3 
 Fees ( productos ) 0.0 0.0 0.0 0.0 0.0 0.0 
 Other revenue ( aprovechamientos ) 2.4 2.2 0.8 1.1 2.0 1.1 
 Accessories  0.0 0.0 0.0 0.0 0.0 0.0 
 
28 Decree establishing austerity measures to be observed by federal govern ment departments and 
bodies using criteria indicated therein.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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   2016  2017  2018  2019a 2020a 2021a 
Economic balance  -3.0 -1.0 -2.1 -2.0 -2.5 -3.1 
Primary balance  -1.2 0.8 -0.1 0.1 -0.1 -1.1 
Federal government primary expenditure  18.9 16.7 16.6 16.3 17.6 17.6 
a Preliminary figures.  
b The programmable expenditure of the federal government corresponds to the certified accounts 
payable (CLC) and agreements for the disbursement of funds paid by the Treasury. Therefore, it 
may differ from actual expenditure, which is measured on the basis o f the CLCs submitted to the 
Treasury and does not include the disbursement agreements, which are settled through the CLCs in 
the ensuing months. For autonomous bodies, the figures reflect those reported as paid expenditure 
through the Integrated Public Rev enue and Expenditure Information System.  
c Includes spending by departments, together with federal contributions for federal bodies and 
municipalities, and transfers granted to bodies under indirect budgetary control for the payment of 
personal services.  
d  Excludes transfers granted for the payment of personal services.  
e  Includes arrears from prior fiscal years ( Adefas ) and net expenditure incurred by the federal 
government on behalf of third parties (non -budgetary accounts).  
f  Oil revenues tax.  
g Tax o n hydrocarbon exploration and exploitation activities.  
h Includes taxes on new motor vehicles, export taxes, taxes not included in the above items and 
accessories.  
i Mexican Petroleum Fund for Stabilization and Development.  
Note:  In the balance, ( -) represents deficit and (+) surplus.  
Source:  Bank of Mexico, Economic Information System (SIE) database.  
1.34.  The overall public sector deficit increased in 2020 and 2021, to 2.9% of GDP in both years 
(Table 1.4). This reflects an increase in spending from 23.7%  of GDP in 2019 to 25.7% in both 
2020 and 2021. The increased spending was largely attributable to pandemic support 
programmes, resulting in a rise in current spending and in grants and transfers. Although the 
share of budget revenues in GDP increased in 2 020, this mainly reflects the fact that revenues 
contracted by less than GDP.  
Table 1.4 Public sector budgetary expenditure and revenue, 2016 -21 
(Percentage of GDP)  
 2016  2017  2018  2019a 2020a 2021a 
Budgetary expenditure  26.6 23.6 23.8 23.7 25.6 25.6 
 Programmable expenditure  20.7 17.6 17.3 17.3 19.0 19.5 
 Current expenditure  11.2 10.9 11.3 11.2 12.1 11.7 
 Personal servicesb 5.5 5.2 5.2 5.0 5.5 5.1 
 Materials and supplies  1.2 1.4 1.6 1.5 1.4 1.5 
 Otherc 4.5 4.3 4.6 4.7 5.2 5.1 
 Capital expenditure  4.5 2.4 1.9 2.0 2.1 3.4 
 Direct physical investment  2.3 1.5 1.5 1.3 1.5 1.6 
 Other direct capital expenditure  2.2 0.9 0.4 0.7 0.6 1.8 
 Subsidies and transfers  5.0 4.3 4.2 4.1 4.7 4.4 
 Current  3.6 3.1 2.9 3.1 3.5 3.4 
 Capital  1.4 1.2 1.2 1.0 1.3 1.1 
 Non-programmable expenditure  5.9 6.0 6.5 6.4 6.6 6.1 
 Shareholdings  3.4 3.5 3.6 3.6 3.6 3.5 
 Arrears from prior fiscal years ( Adefas ), other  0.1 0.1 0.3 0.1 0.1 0.0 
 Financial cost  2.3 2.4 2.6 2.7 2.9 2.6 
 Internal  1.6 1.7 1.8 1.9 2.0 1.8 
 External  0.7 0.7 0.8 0.8 0.9 0.9 
Budgetary revenue  24.1 22.6 21.7 22.0 22.8 22.7 
 Total federal govern ment revenue  17.7 17.5 16.5 16.4 17.5 16.4 
 Tax 13.5 13.0 13.0 13.1 14.3 13.6 
 Non-tax 4.2 4.5 3.4 3.3 3.2 2.9 
 Organizations and firms  6.3 5.1 5.3 5.6 5.3 6.3 
 Total revenue  8.9 7.8 8.2 8.7 8.8 9.6 
 Subsidies and transfersd 2.6 2.7 2.9 3.1 3.5 3.3 
Public sector balance  -2.5 -1.1 -2.1 -1.6 -2.9 -2.9 
 Budgetary balance  -2.5 -1.1 -2.0 -1.7 -2.8 -2.9 
Entities under indirect budgetary controle 0.0 0.0 -0.1 0.1 -0.1 0.1 
 Non-budgetary balance  0.0 0.0 0.0 0.0 0.0 0.1 
 Differences with financing sources  0.0 0.0 -0.1 0.0 -0.1 0.0 
Primary balance  -0.1 1.4 0.6 1.1 0.1 -0.3 
 Primary balance, budgetary  -0.1 1.4 0.6 1.1 0.1 -0.3 
 Primary balance, entities under indirect 0.0 0.0 0.0 0.0 0.0 0.1 WT/TPR/S/429 /Rev.1  • Mexico  
 
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   2016  2017  2018  2019a 2020a 2021a 
 budgetary control  
Budgetary primary expenditure  24.2 21.2 21.1 21.0 22.7 23.0 
a Preliminary figures.  
b Includes budgetary spending by departments and bodies, together with federal contributions for 
federal bodies and municipalities, and transfers granted to bodies under indirect budgetary control 
for the payment of personal services.  
c Includes expenditure on general services  and other current expenditure.  
d Grants and transfers to agencies and enterprises under direct budgetary control.  
e Entities under indirect budgetary control.  
Source:  Ministry of Finance and Public Credit, Government Finance and Budget.  
1.35.  Total public secto r net debt totalled MXN 12,145.67 million in December 2021, equivalent 
to 46.3% of GDP. External public debt stood at MXN 4,493.83 million in the same period (17.1% 
of GDP), while domestic public debt totalled MXN 7,652.83 million (26.2% of GDP).29 The 
government has laid emphasis on a conservative fiscal stance aimed at containing debt. The gross 
debt of the public sector (as defined by the IMF) is estimated to be at around 60% of GDP.30 
1.2.3   Monetary and exchange -rate policy  
1.36.  The prime objective of the Bank of Mexico (Banxico), which is responsible for formulating, 
implementing and supervising monetary policy, is to maintain stability in the purchasing power of 
the local currency, in accordance with Article 28 of the Constitution. Banxico is governed by the 
Law on the Bank of Mexico. Under Article 51 of this Law, in the month of January each year, 
Banxico must send to the Federal Executive and Congress a document setting out the monetary 
policy to be pursued in the year ahead. Since 2014, Banxico has also  been required to submit to 
the Federal Executive and Congress, no later than 45 business days after the end of each quarter, 
a report on inflation, economic trends, and the behaviour of the country's economic indicators in 
the quarter in question, and on the implementation of monetary policy for the quarter.  
1.37.  Since 2001, Banxico has been operating an inflation  targeting scheme to provide  a 
framework for the implementation of monetary policy. Banxico's permanent target  is to reach  an 
annual inflation rate of  3%, plus or minus 1 percentage point , as measured by the national 
consumer price index (INPC). This target  remained unchanged during the review period. Banxico 
uses a target for the overnight interbank interest rate as its main monetary policy instrument.  The 
conditions under which liquidity is supplied to the money market are modified, for example, 
through open -market operations, in order to situate the interbank funding rate at the desired 
level. Furthermore, the target for the overnight interbank intere st rate is adjusted in order for 
inflation to converge towards its target over the monetary policy timeline.31 
1.38.  During the review period, as many as four subperiods can be identified in relation to the 
conduct of monetary policy. Between 2016 and the end of 2017, in response to inflationary 
pressure, the Bank of Mexico restricted monetary policy. During this period,  there were 11 hikes in 
the overnight interbank interest rate (target interest rate), which increased by 4 percentage points 
from 3.25% to 7.25%.32 In 2018, the Bank of Mexico increased, to a lesser extent, the target 
interest rate. More specifically, the Board of Directors increased this rate from 7.25% to 8.25% 
during the year. In 2019, in response to a decrease in inflation as foreseen by the central 
institution in the second half of the year, and weaker economic activity, the Board of Directors 
initiate d a cycle to lower the target interest rate, bringing it down to 7.25% in February 2020. 
Between March 2020 and February 2021, in light of the impact of the shocks stemming from the 
pandemic, the Board of Directors further reduced its target rate to 4%. Fu rthermore, in March and 
 
29 Bank of Mexico, Economic Information System (SIE). Viewed at: 
https://www.banxico.org.mx/SieInternet/consultarDirectorioInternetAction.do?accion=consultarCuadro&idCuad
ro=CG7& . 
30 IMF, IMF Executive Board Concludes 2021 Article IV Consultation with Mexico . Press 
Release  No. 21/323, 5 November 2021. Viewed at: 
https://www.imf.org/en/News/Articles/2021/11/05/pr21323 -mexico -imf-executive -board -concludes -2021-
article-iv-consultation -with-mexico . 
31 Interest rate on overnight interbank funding operations.  
32 Bank of Mexico, Anuncios de las decisiones de política monetaria . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/anuncios -de-las-decisiones -de-politica -
monetaria/anuncios -politica -monetaria -t.html . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  April 2020, the central  institution announced the implementation of a series of additional measures 
with the aim of promoting the orderly functioning  of the financial markets, strengthening credit 
channels and providing liquidity fo r the sound development of the financial system. June 2021  
marked a turning point in monetary policy , when economic growth resumed and inflation 
increased. Between  June 2021 and February 2022, Banxico increased the target interest rate six 
times, bringing it up to 6%.  
1.39.  As the overnight interbank interest rate is the Bank of Mexico's main monetary policy 
instrument, the development of the monetary base is determined primarily by the demand for 
money. In this regard, the monetary base grew at an average annual  rate of 11.4% during the 
period 2017 -21, with distinct trends observed prior to and during the pandemic. In particular, the 
growth of the monetary base accelerated in 2020 (21.6%) and 2021 (15.2%) compared to 
previous years, owing mainly to an increase in  demand for money for precautionary reasons.33 The 
monetary aggregates M1 and M4 behaved in a similar way (Table 1.5).  
Table 1.5 Main monetary indicators, 2016 -22 Q1  
 2016  2017  2018  2019  2020a 2021a 2022 
Q1a 
Monetary aggregates   
Monetary base, end of period (MXN 
billion)b 1,420  1,546  1,674  1,742  2,118  2,441  2,512  
Monetary base 
(annual  variation,  %) 14.4 8.8 8.3 4.1 21.6 15.2 15.3 
M1 (MXN  billion)  3,868  4,264  4,492  4,702  5,646  6,377  6,352  
M4 (MXN  billion)  10,811  11,712  12,263  13,200  14,420  15,339  15,382  
Interest rates (period average %)   
28-day Cetes (treasury bill) ratec 4.1 6.7 7.6 7.8 5.3 4.4 5.9 
28-day TIIE  rate (Interbank 
Equilibrium Interest Rate)d 4.5 7.1 8.0 8.3 5.7 4.6 6.0 
Three -year bond rate (fixed rate)  5.5 7.0 7.8 7.5 5.2 5.8 7.9 
10-year bond rate (fixed rate)  6.2 7.2 7.9 7.8 6.2 6.9 8.1 
20-year bond rate (fixed rate)  6.7 7.5 8.1 7.9 6.9 7.5 8.3 
Inflation (12 -month variation, end of period)   
Inflation target  3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 
National consumer price index 
(INPC, end  of period)  92.0 98.3 103.0  105.9  109.3  117.3  120.2  
National consumer price index 
(INPC, annual average)  90.1 95.6 100.3  103.9  107.4  113.5  119.0  
Inflation rate (annual %)  2.8 6.0 4.9 3.6 3.4 5.7 7.3 
Exchange rate   
Exchange rate, end of period 
(MXN/USD)  20.7 19.8 19.7 18.8 19.9 20.6 20.0 
Exchange rate, average 
(MXN/USD)  18.7 18.9 19.2 19.3 21.5 20.3 20.5 
Real effective exchange rate based 
on the consumer price index  79.0 80.9 81.0 83.7 77.4 81.9 81.7 
Real effective exchange rate, 
annual variation (%)  -12.9 2.3 0.1 3.3 -7.6 5.9 1.0 
a Preliminary figures.  
b Monetary base consisting of banknotes and coins in circulation and current account deposits held by 
commercial banks at the Bank of Mexico.  
c Tax-exempt rates of return.  
d The Interbank Equilibrium Interest Rate (TIIE) is determined by the Bank of Mexico on the basis of 
quotations submitted by credit institutions, with the start date being the date of publication in the 
Official Journal. The procedure for calculating this rate is established in Title 3, Chapter IV of 
Circular  No. 3/2012 issued by the Bank of Mexico, and in the Official Journal of 23 March 1995.  
Source:  Bank of Mexico, Economic Information System (SIE), and IMF.  
1.40.  In March and April 2020, in the light of the impact of the shocks stemming from the 
COVID -19 pandemic, the Bank of Mexico announced a series of measures aimed at promoting 
orderly financial market behaviour, strengthening credit channels and providing liquidity for the 
sound development of the financial system (Box 1.1). These measures were imp lemented in 
 
33 Bank of Mexico (2021), La Demanda de Billetes y Moneda s en México Durante la Pandemia 
de COVID -19. Extracto del Informe Trimestral Abril - Junio 2021, Recuadro 4, pp. 52 -55, August 2020. Viewed 
at: https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/recuadros/%7B709FD59A -
AA0D -D45C -59A3-97D3CEFFB68B%7D.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  response to the major impact on the financial markets, tighter liquidity and the decline in the 
operating conditions of the foreign exchange and fixed income markets.34 The measures adopted 
by the central institution included operations authori zed under the Law on the Bank of Mexico, and 
measures to improve the functioning of the foreign exchange market in accordance with the 
decisions of the Foreign Exchange Commission. At 25 February 2022, the current committed 
amount for these measures was  MXN 112 billion for local currency facilities and USD 7.5 billion for 
the rest. If maturities and refinancing operations are included, the total amounts allocated were 
MXN 692.2 billion and  USD 22.7 billion, respectively. On 30 September 2021, the additional  
measures expired, with the exception of those that remain available to the Bank of Mexico 
indefinitely.35 Furthermore, the Board of Directors of the National Banking and Securities 
Commission (CNBV), to which the Bank of Mexico belongs, issued, in March 2 020, temporary 
special accounting criteria, which were applicable to loans granted by credit institutions to 
households and businesses whose source of income was affected by the pandemic. The special 
accounting criteria included the partial or total deferr al of capital and/or interest payments for up 
to four months, with the possibility of an extension for two  additional months, on loans granted 
under the programme. After the special accounting criteria had expired at the end of 2020, the 
CNBV implemented r egulatory incentives to facilitate the restructuring of bank loans for 
households and businesses that could face problems in the payment of their debts. The new 
facility, to which credit institutions voluntarily adhered, aimed to improve the quality of the  
banking book, by means of greater flexibility for the payment of restructured loans.  
Box 1.1 Measures implemented by the Bank of Mexico to address the COVID -19 
pandemic  
Banxico adopted, in total, 15 measures b etween March and May 2020, which the authorities grouped under 
four main objectives:  
(a) Provide liquidity and re -establish operating conditions in money markets:  
(i) reduce the monetary regulation deposit, which commercial and development banking instit utions are 
required to hold at Banxico, by MXN 50 billion, from MXN 320 billion to MXN  270 billion, thereby releasing 
liquidity to support the activities of commercial and development banks and maintain or extend credit lines. 
Banxico would "sterilize" or offset the monetary impact of this measure.  
(ii) reduce the interest rate for the Ordinary Additional Liquidity Facility (FLAO) that supplies liquidity to 
commercial banking institutions through secured loans or repos, from between 2 and 2.2 times the tar get for 
the overnight interbank interest rate to 1.1 times this rate.  
(iii) increase liquidity during operating hours to facilitate the functioning of the financial markets and payment 
systems, in order to avoid pressure on the operational target for the implementation of monetary policy and 
the overnight interbank funding rate.  
(iv) extend the securities eligible for the FLAO, foreign exchange hedging operations and credit operations in 
dollars.  
(v) increase the number of counterparties eligible for the  FLAO; in particular, access is extended to 
development banking institutions to enable them to obtain liquidity through secured loans or repos.  
(vi) implement a temporary securities swap facility, for up to MXN 100 billion, with the aim of providing 
liquidity for trading instruments whose operability and liquidity on the secondary market have declined. 
On 15 September 2020, the size of this facility was decreased by MXN 50 billion. As a result, as from this date, 
the resources available through this facili ty were reduced to MXN  50 billion.  
(b) Promote orderly behaviour in government and corporate securities markets:  
(i) strengthen the Market Makers Programme for government debt, in collaboration with the Ministry of Finance 
and Public Credit, by means of two changes: the implementation of government securities swaps for market 
makers, to enable them to better manage their securities holdings; and the modification of the call option 
rights on government securities of market makers, in order for the  call option to be exercised on the second 
banking day following the primary auction, instead of the first day.  
 
34 Bank of Mexico (2020), Políticas Económicas Consideradas en México para Enfrentar el Panora ma 
Adverso Generado por la Pandemia de COVID -19. Extracto del Informe Trimestral Enero - Marzo 2020, 
Recuadro 7, pp. 81 -85, mayo 2020. Viewed at: https://www.banxico.org.mx/publicaciones -y-prensa/informes -
trimestrales/recuadros/%7B455A13D4 -524F-84CE-704E-8045ED092A0C%7D.pdf . 
35 Bank of Mexico (2021), Modificación de la vigencia de las medidas orientadas a promover un 
comportamiento ordenado de los mercados financieros, fortalecer los canales de otorgamiento de crédito y 
proveer liquidez para el sano desarrollo del sistema financiero, 25 February 2021. Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/miscelaneos/%7B606E5612 -53D1 -90D0 -7993-
B1A76BF714D2%7D.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  (ii) implement a facility for repurchases of term government securities, for up to MXN 100 billion, to supply 
liquidity to debt -holding financi al institutions. On 15 September 2020, the size of this facility was increased by 
MXN 50 billion. As a result, as of this date, the resources available through this facility increased 
to MXN 150 billion.  
(iii) implement government securities swap operations, for up to MXN 100  billion , through which Banxico 
receives long -term securities ( 10 years or over) and delivers other securities with maturities of up to 
three  years.  
(iv) implement the Corporate Securities Repurchase Facility (FRTC), for up to  MXN 100 billion, in order to 
supply liquidity for short -term corporate bonds and long -term corporate debt, whose operability and liquidity 
on the secondary market has decreased.  
(c) Strengthen credit channels:  
(i) provide resources of up to MXN 250 bill ion for banking institutions, in order to channel credit to MSMEs and 
individuals affected by the pandemic. To this end, Banxico was authorized to release resources associated with 
monetary regulation deposits, and to grant financing for terms of between 1 8 and 24 months to commercial 
and development banking institutions.  
(ii) implement a financing facility of up to MXN 100 billion to commercial banking institutions secured by 
corporate loans, for the financing of MSMEs.  
(d) Promote the orderly functionin g of the foreign exchange market:  
(i) extend the programme on foreign exchange hedges in dollars to be settled in local currency, 
from USD 20 billion to USD 30 billion.  
(ii) conduct USD credit auctions. Facility financed through the temporary foreign cur rency swap mechanism 
established with the United States Federal Reserve for USD 60 billion.  
(iii) foreign exchange hedges settled by differences in USD with counterparties not domiciled in the country, 
making it possible to operate during the hours when d omestic markets are closed.  
In accordance with Banxico, in total, the shares expressed in local currency provided support for the 
functioning of the financial system for up to MXN 800 billion, equivalent to 3.3% of GDP in 2019.  
Source:  Bank of Mexico (2020), Políticas Económicas Consideradas en México para Enfrentar el Panorama 
Adverso Generado por la Pandemia de COVID -19. Extracto del Informe Trimestral Enero - Marzo 
2020, Recuadro 7, pp. 81 -85, mayo 2020 . Viewed at: https://www.banxico.org.mx/publicaciones -y-
prensa/informes -trimestrales/recuadros/%7B455A13D4 -524F-84CE-704E-8045ED092A0C%7D.pdf ; 
Bank of Mexico (2020), Extensión de la vigencia de las medidas orientadas a promover un 
comportamiento ordenado de los mercados financieros, fortalecer los canales de otorgamiento de 
crédito y proveer liquidez para el sano desarrollo del sistema financiero , 15 September 2020. Viewed 
at: https://www.banxico.org.mx/publicaciones -y-prensa/miscelaneos/%7B510746A8 -3C9B -68A0-
B6C2 -9E83CB110E 19%7D.pdf . 
1.41.  During the review period, inflation, measured using the national consumer price index 
(INPC) at the end of period, exceeded the inflation target in various periods and, in other periods, 
was within the range of variability. More specifically, th e variation of the INPC exceeded the target 
in 2017 (6% annual average) and 2018 (4.9%), and again in 2021 (5.7%), while it remained 
within the range in 2019 (3.6%) and 2020 (3.4%). Inflation accelerated  in the last quarter of 
2021, with the INPC increasing at an annual rate of 7%. For the first quarte r of 2022, annual 
inflation is forecast at 6.9% with a core inflation rate of 6.4%.  
1.42.  In view of the 0.5 percentage point increase in the overnight interbank interest rate in 
February 2022, Banxico stressed that the inflationary pressures in the previous mon ths had been 
greater in magnitude and lasted longer than anticipated (7.07% in January 2022). Consequently, 
the inflation expectations for 2022 and 2023 increased, while the medium -term inflation 
expectations decreased slightly and the long -term expectatio ns remained stable at levels above 
the target. The forecasts for general and core inflation were revised upwards, particularly for 2022 
and the first quarter of 2023. Banxico considers that, with the revision of the target for the 
overnight interbank inter est rate to 6%, the monetary policy stance is in line with the trajectory 
required for inflation to converge to its target of 3% by around the third quarter of 2023.36 Banxico 
hopes that the effects of the pandemic on core inflation will fade away over the  course of 2022, 
and that core inflation will decrease during the remainder of the forecast period, to reach around 
 
36 Bank of Mexico, Anuncio de Política Monetaria . Press Release, 10  February 2022. Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/anuncios -de-las-decisiones -de-politica -
monetaria/%7B33C58779 -7EFB-ACB7 -4BC0 -9B7F2444DE1D%7D.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3% in the second  quarter of 2023. Upside risks for inflation include: (i) persistently -high core 
inflation; (ii)  external inflationary press ures associated with the evolution of the pandemic and the 
measures adopted to contain its effects, which may result in higher input or transport costs, and 
logistics issues in global production chains; (iii) greater pressure, resulting from the recent 
geopolitical conflict, on the prices of commodities, in particular energy, or on the prices of 
agricultural products; (iv)  currency depreciation episodes; and (v) cost pressures caused by supply 
chain disruptions, or by higher costs associated with hiring con ditions or wages, which could be 
passed on to consumer prices.37 
1.43.  The Foreign Exchange Commission, which comprises officials from the Ministry of Finance 
and Public Credit (SHCP) and Banxico, is responsible for exchange -rate policy in Mexico. Since the 
end of 1994, Mexico has had a flexible exchange -rate regime, in which the exchange rate is 
determined freely in the market. However, the Foreign Exchange Commission intervenes in the 
market by holding dollar auctions in situations of volatility, to avoid exces sive fluctuation. The 
nominal  MXN/USD exchange rate remained stable during the review period, with minor 
fluctuations. The real effective exchange rate increased slightly (by 3.7%) between 2017 and 
2021, as Mexican inflation was a little above that of the country's main trading partners.  
1.2.4   Balance of payments  
1.44.  The current account of Mexico's balance of payments recorded a modest shortfall 
throughout the 2017 -19 period, but experienced a sizeable surplus in 2020, before slipping back 
into deficit, albeit a smal l one, in 2021 (Chart 1.1). Developments in the financial account enabled 
reserves to be accumulated throughout most of the period.  
1.45.  The balance -of-payments current account deficit exceeded USD 20 billion per year in 
2016-18, representing between 1.7% and 2 .2% of GDP (Table 1.6 and Chart 1.1). These deficits 
can be explained by the performance of the oil balance, the services balance and the balance of 
primary incomes. However, the surplus of the secondary income account, particularly remittances, 
continued to increase. The COVID -19 pandemic caused a sharp contraction in exports and imports 
of goods and services in 2020. However, the decline in imports was greater, and resulted in a 
surplus in the balance -of-payments current account, amounting to USD 26,210 m illion, or 2.4% of 
GDP. In 2021, the trade balance posted a deficit of USD 14,491 million (0 .9% of GDP).  
1.46.  The Bank of Mexico estimates that the current trade deficit for 2022 will be 
between  USD 9 billion and USD 15 billion ( -0.6% and -1.1% of GDP). The cur rent account balance 
is projected to range between a surplus of USD 1.8 billion and a deficit of USD 8.2 billion (0.1% 
and -0.6% of GDP). For 2023, a trade deficit of between USD 9.8 billion and USD 17.8 billion ( -
0.6% and -1.2% of GDP) is foreseen, as wel l as a current account balance ranging between a 
surplus of  USD 1.9  billion and a deficit of USD 10.1 billion (0.1% and -0.7% of GDP).38 
 
37 Bank of Mexico (2022), Informe Trimestral, Octubre -Diciembre 2021 . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/%7BFA4C74D3 -AE21-FDAD -8A49-
989F1F44F671%7D.pdf . 
38 Bank of Mexico (2022), Informe Trimestral, Octubre -Diciembre 2021 . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/%7BFA4C74D3 -AE21-FDAD -8A49-
989F1F44F671%7D.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Chart 1.1 Current account and financial account of the balance of payme nts, 2016 -21 
(USD million)  
 
Source:  Bank of Mexico, Economic Information System (SIE) database.  
Table 1.6 Balance of payments, 2016 -21 
(USD million)  
 2016  2017  2018  2019  2020a 2021a 
Current account as % of GDP  -2.2 -1.7 -2.0 -0.3 2.4 -0.4 
Current account  -24,140  -20,028  -24,326  -3,471  26,210  -4,866  
 I. Credit  434,524  479,228  527,649  544,475  484,530  583,613  
 A. Goods  374,311  409,806  451,082  460,939  417,151  494,550  
 Merchandise exports  373,954  409,433  450,713  460,604  416,999  494,225  
 Goods procured in ports by carriers  357 374 370 336 152 325 
 B. Services  24,213  27,595  29,028  31,717  17,037  27,257  
 C. Primary income  7,919  10,485  13,013  14,530  9,301  9,755  
 Profits and dividends  2,981  4,765  5,228  6,091  5,082  5,870  
 Profits  1,823  3,191  4,451  5,240  4,562  4,246  
 Dividends  1,158  1,574  778 852 520 1,624  
 Interest  3,237  3,736  5,686  5,849  1,941  1,335  
 Compensation of employees  1,698  1,980  2,091  2,583  2,274  2,544  
 Other  4 4 7 6 5 5 
 D. Secondary income  28,081  31,341  34,526  37,288  41,041  52,051  
 Remittances  26,993  30,291  33,677  36,439  40,605  51,586  
 Other  1,088  1,050  849 849 436 466 
 II. Debit  458,664  499,256  551,976  547,945  458,320  588,479  
 A. Goods  387,392  420,790  464,850  455,772  383,172  506,017  
 Merchandise imports  387,088  420,395  464,302  455,242  382,986  505,716  
 Goods procured in ports by carriers  304 395 547 530 186 302 
 B. Services  33,047  37,074  39,969  39,794  28,264  38,670  
 C. Primary income  37,239  40,194  46,048  51,298  45,917  42,667  
 Profits and dividends  17,331  18,920  23,191  25,078  21,792  20,259  
 Profits  10,652  11,955  13,281  18,097  16,081  12,213  
 Dividends  6,679  6,965  9,911  6,980  5,711  8,046  
 Interest  19,902  21,263  22,845  26,207  24,111  22,405  
 Public sector  12,843  13,151  13,168  14,254  13,234  13,697  
 Private sector  7,059  8,112  9,677  11,952  10,877  8,708  
 Other  5 11 12 14 13 4 
 D. Secondary income  987 1,198  1,109  1,081  967 1,125  
 Remittances  654 806 1,000  981 899 1,057  
 Other  333 391 109 100 68 68 
Capital account  35 150 -65 -56 -13 -48 
 I. Credit  323 450 237 299 260 220 
 II. Debit  288 300 301 355 273 268 
Financial account (Net lending 
(+)/Net borrowing ( -)) -32,600  -33,363  -31,584  -
16,131  22,091  3,086  
 I. Direct investment  -31,027  -30,143  -25,726  -23,772  -25,224  -32,338  
 A. Net acquisition of financial assets  7,869  3,082  12,124  5,969  6,024  -369 
 Equity and investment fund shares  7,188  6,022  10,540  8,720  6,494  1,374  
 Debt instruments  680 -2,940  1,585  -2,752  -470 -1,744  
-70,000-60,000-50,000-40,000-30,000-20,000-10,000010,00020,00030,00040,00050,000
2016 2017 2018 2019 2020 2021Financial account
Current accountWT/TPR/S/429 /Rev.1  • Mexico  
 
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   2016  2017  2018  2019  2020a 2021a 
 B. Net liabilities incurred  38,896  33,225  37,850  29,740  31,248  31,969  
 Equity and investment fund shares  21,638  23,911  24,597  31,452  22,768  26,038  
 Debt instruments  17,258  9,314  13,253  -1,712  8,479  5,930  
 II. Portfolio investment  -26,602  -10,983  -8,605  -6,683  10,344  41,557  
 A. Net acquisition of financial assets  3,083  13,030  894 3,411  16,458  22,672  
 Equity and investment fund shares  1,560  10,676  2,513  2,658  13,242  14,687  
 Debt securities  1,522  2,353  -1,619  753 3,216  7,985  
 B. Net liabilities incurred  29,684  24,013  9,499  10,094  6,114  -18,885  
 Equity and investment fund shares  9,477  10,320  2,421  -10 186 -3,163  
 Debt securities  20,207  13,692  7,077  10,104  5,928  -15,722  
 III. Financial derivatives (net 
 transactions)  -2,247  3,074  410 1,672  -1,800  2,083  
 IV. Other investment  27,411  9,453  1,853  10,013  26,782  -18,504  
 A. Net acquisition of financial assets  24,229  6,801  8,713  13,560  23,184  -6,964  
 B. Net liabilities incurred  -3,182  -2,652  6,860  3,547  -3,598  11,540  
 Special drawing rights  0 0 0 0 0 12,145  
 Money and deposits  751 -381 175 154 -360 -896 
 Loans, trade credits and advances  -980 2,211  2,134  4,105  -311 2,017  
 Other accounts payable  -2,953  -4,482  4,551  -712 -2,927  -1,726  
 V. Reserve assets  -136 -4,765  483 2,638  11,990  10,288  
 Total variation in gross international 
reserves  428 -2,575  934 6,644  16,029  8,689  
 Valuation adjustments  564 2,190  451 4,005  4,039  -1,600  
Errors and omissions  -8,494  -13,484  -7,193  -
12,604  -4,106  8,000  
Memorandum  
Goods and services balance  -21,915  -20,463  -24,708  -2,909  22,752  -22,879  
 Balance of goods  -13,082  -10,984  -13,768  5,167  33,979  -11,467  
 Balance of oil -related goods  -12,741  -18,285  -23,132  -21,413  -13,924  -24,926  
 Balance of non -oil-related goods  -393 7,323  9,543  26,775  47,938  13,435  
 Balance of goods procured in ports by 
carriers  52 -22 -178 -195 -34 24 
 Balance of services  -8,833  -9,479  -10,941  -8,077  -11,227  -11,412  
Balance of primary income  -29,320  -29,709  -33,035  -36,768  -36,616  -32,912  
Balance of secondary income  27,094  30,143  33,417  36,207  40,074  50,926  
Financial account without reserve assets  -32,464  -28,598  -32,068  -18,769  10,101  -7,202  
Gross international reserves (end of 
period)  178,025  175,450  176,384  183,028  199,056  207,745  
a Preliminary figures.  
Source:  Data provided by the authorities . 
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.3.1.1   Merchandise trade  
1.47.  During the period under review, trade in goods  experienced a slowdown, followed by a 
contraction, as a consequence of the COVID -19 pandemic, and a recovery in 2021. In reflection of 
this recovery, exports grew in current USD terms between  2016 and 2021 (Chart 1.2 and 
Table  A1.1), mirroring, in particular, the continuing decline in oil exports. Merchandise imports, 
however, decreased between 2016 and 2020, and rebounded considerably in 2021 (by almost a 
third compared to 2020), representing  an increase of 30.6% compared with 2018 in 
current  USD terms (Table A1.2). Merchandise exports in 2021 amounted to USD 494,225 million 
(USD  416,999 million in 2020), while imports totalled  USD 505,716 million (USD  382,986  million 
in 2020).  
1.3.1.1.1   Composition of merchandise trade  
1.48.  Mexico's exports continue to be dominated by manufactured products, which accounted for  
more than 85% of the total in 202 1, while agricultural products made up  5%, and mineral 
products (mainly oil products) and those of the extractive industries, 7.5% (Chart 1.2). The 
leading manufacturing exports continue to be electrical machinery and appliances, and transport 
equipment, which accounted for 58.8% of total expo rts in 2021. Exports of electrical machinery, 
appliances and equipment account for 34.8% of the total, with products for the automotive 
industry representing  24.0% (Table  A1.1). The maquila industry continues to be very important for WT/TPR/S/429 /Rev.1  • Mexico  
 
- 33 - 
 
  Mexico's foreign trade , since almost 60% of the country's exports benefited from this regime in 
2021. The composition of maquila exports continues to be dominated by manufactured products, 
particularly electrical machinery and appliances, and transport equipment, which jointly accounted 
for 70% of maquila exports in 2020 and 68% in 2021.  
1.49.  Imports and exports have similar structures. The main import products are electrical 
machinery and appliances (35.7% of imports in 2021), and transport equipment  (8% of total 
imports) (Table A1. 3 and Chart 1.2).  
1.3.1.1.2   Direction of merchandise trade  
1.50.  Mexico's export markets remain highly concentrated. The United States is still  Mexico's main 
trading partner, with a share of total exports that remained relatively constant between 2016 
(80.9%) and 2021 (80.7%). This being so, the vast majority of Mexican trade is cross -border, and 
consists of finished goods or other goods that for m part of global value chains, as a result of the 
strong presence of assembly industries.  
1.51.  The second largest export market on the American continent is Canada, which received 
2.6% of Mexico's total exports in 2021, followed by Brazil with 0.7%. The remaind er of Mexico's 
exports are sent mainly to the 27 members of the European Union (3.7%) and China (1.9%).  
1.52.  The United States is also the main source of Mexico's imports, providing 43.8% of the total 
in 2021. Imports from Asia represented 38% of the total, wit h China accounting for 20%, followed 
by the Republic of Korea with 3.8% and Japan with 3.4%. The European Union (27) was also an 
important source of imports, accounting for 10% of the total in 2021 (Table A1.4 and Chart 1.3).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Chart 1.2 Merchandise trade by main products, 2016 and 2021  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
2016 2021
(a)    Exports
Total: USD 373,954 million
(b)    Imports
Total: USD 387,088 million Total: USD 505,716 millionTotal: USD 494,225 millionOther
14.1%Other
13.7%
Mineral 
products
6.8%Chemical 
products
6.8%
Plastics
7.3%
Electrical machines 
and apparatus
39.1%Other
15.6%Mineral 
products
9.1%
Chemical 
products
7.7%
Plastics
7.4%
Base metals
9.6%
Electrical machines 
and apparatus
35.7%Other
15.2%
Base 
metals
8%Instruments 
and 
apparatus
3.9%Vegetable 
products
3.7%Vegetable 
products
3.8%
Transport 
equipment
10%Transport 
equipment
8%Mineral 
products
6%Prepared 
foodstuffs
3%Prepared foodstuffs
3.9%
Transport 
equipment
24.7%Mineral 
products
7.5%
Transport 
equipment
24%
Vegetable 
products
2.5%Vegetable 
products
3.2%
Instruments 
and 
apparatus
4.1%Plastics
2.9%
Base metals
4.2%
Electrical machines 
and apparatus
36.9%Instruments 
and 
apparatus
4.4%Plastics
3.1%
Base 
metals
5%
Electrical machines 
and apparatus
34.8%Instruments 
and 
apparatus
4.2%WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Chart 1.3 Merchandise trade by trading partner,  2016 and 2021  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
1.3.1.2   Trade in services  
1.53.  Mexico's services trade continued to be in deficit during the review period, owing mainly to 
shortfalls in transport and insurance. Its main categories show negative balances, with the 
exception of travel. Both exports and imports of services were heavily affected by the pandemic. 
The category most affected was travel, which is the category in which Mexico normally has a 
surplus. In 2020, this led to a deficit in services of USD 11,227 million, which was considerably 
higher than the previous year, despite the decrease in economic activity. The deficit remained high 
in 2021, amounting to USD 11,412 million, due mainly to the f act that travel sector exports 
remained well below their pre -pandemic levels (Table 1.7).  
2016 2021
(a)    Exports
Total: USD 373,954 million
(b)    Imports
Total: USD 387,088 million Total: USD 505,716 millionTotal: USD 494,225 millionBrazil
0.8%Other
0.5%
United States
80.9%Other America
4.5%
Brazil
1.2%America
88.2%
United States
80.7%Other America
4.1%
Canada
2.6%Other
0.6%
Asia
5.9%
America
89%Asia
5%
United 
States
46.5%
Other 
America
1.9%Canada
2.5%China
18%Other 
Asia
7.1%Other
0.9%
United 
States
43.8%
Other 
America
1.9%Korea, Rep. of
3.8%
China
20%Other 
Asia
8.4%Other
1.2%
America
52.1%America
49.7%
Europe
11.7%Europe
11.2%Asia
35.2%Asia
38%Europe
5.4%Canada
2.8%
Canada
2.2%EU (27)
4.3%Other Europe
1.2%
Brazil
1.7%Other 
Asia
3.5%
Korea, Rep. of
3.5%Other Europe
1.7% China
1.4%Other 
Asia
4%
Brazil
0.7%EU (27)
3.7%
Japan
3.4%Japan
4.6%Europe
5.5%China
1.9%
EU (27)
10.4%EU (27)
10%Other 
Europe
1.3%Other 
Europe
1.2%Malaysia
2.1%Malaysia
2.5%WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table 1.7 Trade in services, 2016 -21 
(USD million)   
2016  2017  2018  2019  2020a 2021a 
Exports  24,213  27,595  29,028  31,717  17,037  27,257  
 Transport  1,598  1,904  2,195  2,936  1,934  2,384  
 Travel  19,650  21,336  22,526  24,573  10,996  19,796  
 Insurance and pension services  2,502  3,742  3,285  3,120  3,087  3,719  
 Financial services  154 275 341 430 453 574 
 Other services  309 338 681 658 567 785 
Imports  33,047  37,074  39,969  39,794  28,264  38,670  
 Transport  13,194  14,837  15,700  14,775  11,110  18,428  
 Travel  10,303  10,840  11,230  9,881  3,475  5,182  
 Insurance and pension services  3,919  4,952  4,851  6,248  5,532  6,662  
 Financial services  1,788  1,896  3,323  3,355  2,522  2,630  
 Other services  3,842  4,549  4,865  5,535  5,626  5,768  
Balance of services  -8,833  -9,479  -10,941  -8,077  -11,227  -11,412  
a Preliminary figures.  
Source:  Data provided by the authorities.  
1.3.2   Trends and patterns in FDI  
1.54.  Throughout most of the review period (2016 -21), annual foreign direct investment (FDI) 
flows remained above USD 30 billion. In 2021, FDI flows increased compared with 2020, according 
to preliminary data (Table 1.8). The main FDI -recipient sectors in 2016 -21 were manufacturing 
industries, followed by financial and insurance services, trade, transport ation, mining and energy.  
Table 1.8 Foreign direct investment by activity, 2016 -21 
(USD million)  
Sectors  2016  2017  2018  2019  2020  2021  
Agriculture, livestock production, forestry, fishing 
and hunting  103 141 -18 106 136 208 
Mining  1,067  1,729  1.733  2,007  1,413  4,800  
Utilities  1,334  2,134  5.011  1,245  434 451 
Construction  1,203  3,089  1.798  348 444 241 
Manufacturing  17,941  14,984  15.659  15,886  10,841  12,559  
Trade  1,922  3,104  2.969  3,270  2,121  2,698  
Transport, postal and warehousing services  1,865  3,375  1.352  981 2,879  2,767  
Information in mass media  920 631 1.123  1,814  1,240  577 
Financial and insurance services  3,480  2,669  2.382  5,499  6,480  4,750  
Real estate, rental and leasing of movable and 
intangible property  434 561 319 1,230  357 253 
Professional, scientific and technical services  161 241 155 487 341 236 
Business support, waste management and 
remediation services  51 263 125 176 7 176 
Educational services  0 30 64 -7 -1 24 
Health and social services  12 11 7 23 16 12 
Leisure, cultural and sporting and other recreational 
services  52 223 41 38 -25 96 
Hotel and restaurant services  620 923 1.316  1,244  1,180  1,644  
Other services except public administration  23 22 58 65 70 129 
Total 31,186  34,131  34,090  34,411  27,934  31,621  
Note:  Due to rounding, the totals may not correspond to the sum of the figures shown . 
Source:  National Foreign Investment Registry. Ministry of Economic Affairs.  
1.55.  The originators of FDI  flows into Mexico continue to be led by the United States, which 
accounted for 47.5% of FDI in 2021, followed by Spain (13.7%) and Canada (6.5%) (Table 1.9).  
Table 1.9 Foreign direct investment by country of origin, 2016 -21 
(USD million)   
2016  2017  2018  2019  2020  2021  
United States  11,076  15,403  11,850  12,919  10,467  15,009  
Spain  3,567  3,361  4,167  4,061  3,977  4,335  
Canada  2,299  2,826  4,194  2,955  4,215  2,071  
Germany  2,849  2,740  2,965  3,530  726 1,646  
Japan  1,964  2,460  2,280  1,489  1,225  1,583  WT/TPR/S/429 /Rev.1  • Mexico  
 
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2016  2017  2018  2019  2020  2021  
Italy 806 1,865  1,531  1,502  686 129 
United Kingdom  456 501 739 732 901 1,817  
Belgium  1,123  1,041  68 1,371  306 77 
Korea, Republic of  1,125  259 704 172 601 685 
France  455 547 621 1,036  293 386 
Australia  90 1,379  616 768 328 50 
Argentina  287 350 1,085  464 664 309 
Switzerland  584 300 631 722 522 384 
Netherlands  226 -213 753 884 714 -278 
Israel  2,015  2 2 -3 1 -1 
Other  2,264  1,310  1,885  1,809  2,306  3,421  
Total 31,186  34,131  34,090  34,411  27,934  31,621  
Note:  Due to rounding, the totals may not correspond to the sum of the figures shown . 
Source:  National Foreign Investment Registry. Ministry of Economic Affairs.  
 
 WT/TPR/S/429 /Rev.1  • Mexico  
 
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  2  TRADE AND INVESTMENT REG IMES  
2.1  General Framework  
2.1.  Mexico is a federal republic, consisting of a federal govern ment, 31 state governments and 
the government of Mexico City.  
2.2.  Since the previous review in 2017, the Political Constitution of the United Mexican States 
(CPEUM), which was promulgated in 1917, has undergone some 20 reforms.1 The federal State is 
governed by three branches. The Congress of the Union, comprising the Chamber of Deputies and 
the Senate, exercises legislative power. Deputies (500) and senators (128) are elec ted for three 
and six years, respectively. The head of the Executive is the President, who is elected for a 
six-year non-renewable term. In 2021, the Judiciary underwent several reforms, including the 
establishment of the Regional Plenums, which replaced t he Circuit Court Plenums and of the 
collegiate courts of appeal, which replaced the unitary circuit courts.2 Consequently, the Judiciary 
is currently composed of the Supreme Court of Justice of the Nation, the Electoral Tribunal, the 
Regional Plenums, the  collegiate circuit courts, the collegiate courts of appeal and district courts.  
2.3.  There are also autonomous constitutional bodies, such as the Bank of Mexico, the Federal 
Economic Competition Commission (COFECE) and the Federal Telecommunications Institute (IFT).3 
These bodies, which have organizational, technical, budgetary and administrative autonomy, were 
created under the Constitution, and are therefore not subordinate to the branches of government.4 
2.4.  In 2022, the Federal Public Administration (APF) com prises 22 centralized bodies 
and 203 parastatal bodies (Chart 2.1). The parastatal bodies include State -owned companies. 
Since  2017, five parastatal bodies have closed, including ProMéxico, which was the former export 
and investment promotion agency . 
 
1 Constitutional r eforms viewed at: http://www.diputados.gob.mx/LeyesBiblio/ref/cpeum.htm . 
2 Constitutional reform published in the Official Journal of 11 March 2021.  
3 Other bodies include: the National Human Rights Commission (CNDH); the National Council for Social 
Development Policy Evaluation (CONEVAL); the Office of the Attorney General of the Republic (FGR); National 
Institute of Statistics and Geography (INEGI); the National Institute for Transparen cy, Access to Information 
and Personal Data Protection (INAI); and the National Electoral Institute (INE).  
4 Senate Gazette LXIV/1SPR -31/98251 of 14 August 2019.  WT/TPR/S/429 /Rev.1  • Mexico  
 
- 39 - 
 
  Chart  2.1 Composition of the APF in 2022  
 
a The Ministries are as follows: (1) the Ministry of Agriculture and Rural Development; (2) the Ministry 
for Well-being ; (3) the Ministry of Infrastructure, Communication s and Transport; (4) the Ministry of 
Culture; (5) the Ministry of Defence; (6) the Ministry of Agricultural, Territorial and Urban 
Development; (7) the Ministry of Economic Affairs; (8) the Ministry of Public Education; 
(9) the Ministry of Energy; (10) the  Ministry of Public Administration; (11) the Ministry of the 
Interior; (12)  the Ministry of Finance and Public Credit; (13) the Ministry of the Navy; 
(14) the Ministry of the Environment and Natural Resources; (15) the Ministry of Foreign Affairs; 
(16) the  Ministry of Health; (17) the Ministry of Labour and Social Security; and (18) the Ministry of 
Tourism.  
Source:  Government of Mexico. Viewed at: https://www.gob.mx/gobierno#secretarias ; Law on th e 
Organization of the Federal Public Administration (Official Journal of 29  December  1976, latest 
amendment of 11  January  2021); and list of parastatal bodies belonging to the Federal Public 
Administration (Official Journal of 13  August  2021).  
2.5.  The federati ve entities (the states and Mexico City) are sovereign and autonomous, and 
therefore have their own political constitution and own legislative powers (local congress, 
comprising a single chamber of deputies), executive (the Governor or, in the case of Mexi co City, 
the Head of Government) and judiciary (the courts established under the local constitution. The 
high court or the supreme court is the highest instance of the local judiciary). The federative 
entities may establish their own institutions and pass their own laws. The states are divided into 
municipalities, governed by municipal councils, while Mexico City is made up of boroughs governed 
by mayors.  
2.6.  The Constitution defines the competences of the Federal State and the federative entities. 
The federati ve entities exercise all powers not "expressly granted" to the Federal State.5 For 
example, the Federal State has the "exclusive power" to levy duties on imports, exports or goods 
in transit, and to regulate (and even prohibit) the circulation of goods within the national territory.6 
The Constitution prohibits the federative entiti es from undertaking certain activities. For example, 
the federative entities cannot sign international agreements, mint money, incur obligations abroad 
or in foreign currencies, or levy duties on the transit, entry or exit of goods within their territory.7 
However, if so authorized by the Congress of the Union, the federative entities may impose taxes 
or duties related to foreign trade.8 
2.7.  The federative entities have the power to pass laws on matters falling within the competence 
of the Federal State, prov ided that such matters are not already the subject of a federal law or 
decree, and should it be necessary to regulate them. In this case, the sub -federal law would be 
repealed as soon as a federal law or decree entered into force. In some cases, both the federal 
govern ment and the federative entities regulate the same matter (for example, health) or different 
aspects of the same subject (for example, transport and communication routes).  
 
5 Article 124 of the Political Constitution of the United Mexican States.  
6 Article 131 of the Political Constitution of the United Mexican States.  
7 Article 117 of the Political Constitution of the United Mexican States.  
8 Article 118 of the Political Constitution of the United Mexican States.  
Parastatal 
bodiesAPFMinistries (18)aOffice of the President of 
the Republic
Decentralized bodies 
(106)
Office of the Legal Counsel 
of the Federal Executive
National 
Hydrocarbons 
Commission (CNH)Energy Regulatory 
Commission (CRE)State -controlled 
companies (64) 
Public trust funds 
(18)
State -owned production 
companies (2) and their 
subsidiary companies (13)Centralized 
bodies Coordinated 
regulatory bodies in 
the energy sectorWT/TPR/S/429 /Rev.1  • Mexico  
 
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  2.8.  Mexico has a National Tax Coordination System (SNCF), in which the Fede ral State and the 
federative entities participate.9 Through the SNCF, the Federal State transfers "federal 
contributions", that is, a percentage of federal tax and non -tax revenue10, to the federative 
entities. The Federal State does not specify how the " federal contributions" should be used. These 
contributions are extremely important for some federative entities, since they account for 
over 85% of their total revenue.11 Under the SNCF, in addition to providing "federal contributions", 
the Federal State finances decentralized public services, such as education and public health, 
through "allocations". Unlike "federal contributions", "allocations" must be used for specific  
purposes, and therefore the federative entities must report to the Federal State on how such 
allocations are used.12 
2.9.  The Constitution, the laws passed by the Congress of the Union and international agreements 
constitute the supreme law.13 Federal laws and  decrees are followed by sub -federal constitutions 
and laws.  
2.10.  The legislative procedure has not changed since the previous review in 2017. Generally, 
draft laws and decrees are debated in the two chambers of the Congress of the Union (Box 2.1).14 
These draf ts may be tabled in either of the two chambers, except when they concern borrowing, 
contributions, taxes, or the recruitment of troops, in which case they must first be debated in the 
Chamber of Deputies. The chamber in which the legislative procedure is i nitiated is the originating 
chamber and the other is the review chamber.  
Box 2.1 Legislative procedure  
(1) Submission of the draft law or decree : a draft law or decree may be tabled by the President, deputies 
or senators of the Congress of the Union, local deputies or citizens (with the support of 0.13% of 
registered voters).  
(2) Discussion and approval : if the draft is approved in the originating chamber, it is referred to the review 
chamber, in which three si tuations may arise:  
(a) the review chamber approves the draft, which is forwarded to the Executive;  
(b) the review chamber rejects the draft in its entirety and returns it to the originating chamber. If the 
originating chamber insists on the original text,  it will once again submit the draft to the review 
chamber, which may: (a) approve the original text, in which case the draft is forwarded to the 
Executive; or (b) reject the text, in which case the draft may not be resubmitted during the same 
congressiona l session (it is archived);  
(c) the review chamber rejects part of the text, or amends it or adds new text, and returns the draft to 
the originating chamber. The originating chamber examines only the part that has been rejected, 
amended or added. If the or iginating chamber approves the changes, the draft is sent to the 
Executive. If the originating chamber insists on the original text, the text is returned to the review 
chamber, which may: (a) reject its own changes and send the draft to the Executive; or ( b) insist on 
its changes, in which case, the draft may not be resubmitted during the same congressional session 
or, if the originating chamber and the review chamber so agree, only the approved text is forwarded 
to the Executive.  
The draft laws or decrees must be approved by an absolute majority of votes, with the exception of 
constitutional reform bills which require a qualified majority (two -thirds) of votes. Furthermore, constitutional 
reform bills must be approved by the Congress of the Union and by the  absolute majority of the local 
congresses before being forwarded to the Executive (Article 135 of the CPEUM).  
 
9 Fiscal Coordination Law (Official Journal of 27 D ecember 1978, latest amendment 
of 30 January  2018).  
10 Federal tax revenue includes federal taxes, such as income tax, value -added tax (VAT) and the 
special tax on production and services (IEPS). Federal non -tax revenue includes various federal duties levie d 
on the exploitation of hydrocarbons and minerals.  
11 Superior Audit Office of the Federation (2018), Participaciones Federales a Entidades Federativas y 
Municipios; Auditoría Especial del Gasto Federalizado . Viewed at: 
https://www.asf.gob.mx/Trans/Informes/IR2018c/Documentos/Auditorias/MR -PART.%20FEDERALES_a.pdf . 
12 Ministry of the Interior. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/225601/Gasto_federalizado_e_indicadores.pdf . 
13 Article 133 of the Political Constitution of the United Mexican States.  
14 Draft laws or decrees relat ed to the exclusive powers of the Chamber of Deputies of the Senate 
(stipulated in Articles 74 and 76 of the Constitution) are only debated in the corresponding chamber. When the 
draft law is approved by the chamber, it is sent to the Executive. Therefore no debates are held between the 
two chambers.  WT/TPR/S/429 /Rev.1  • Mexico  
 
- 41 - 
 
  (3) Approval, promulgation and publication : If the Executive has no comments to make, it approves the 
draft law or decree. The law or decree is promulgated and is published in the Official Journal. The 
Executive may also reject (totally or partially) a draft law or decree, on the grounds that it is 
unconstitutional or for other reasons. Regardless of the grounds, the text will be reconsi dered by the 
originating chamber. If the originating chamber insists on the text (by qualified majority), it will be 
forwarded to the review chamber. If the review chamber insists on the text (by qualified majority), the 
draft will be sent once again to th e Executive. In this case, the Executive must approve it, and the law or 
decree is promulgated and published in the Official Journal.  
Source:  Article 72 of the Political Constitution of the United Mexican States.  
2.11.  In principle, only the Congress of the Uni on can pass laws and decrees. However, the 
Constitution empowers the Executive to legislate in emergency situations in which the "public 
peace" is threatened, or when the Executive deems it "urgent" in order to regulate foreign trade, 
the national economy,  the stability of domestic production or other similar situations.15 In these 
cases, the Executive issues decrees or provisions which are generally enforceable and which have 
the same standing as laws and decrees passed by the Congress of the Union.16 Between 2017 and 
2022, the Executive issued several decrees to regulate foreign trade, with the adoption of 
measures such as modifications to nomenclature and tariff rates, and the restriction or prohibition 
of the importation and exportation (or transit of) g oods ( Section 2.2).  
2.12.  International agreements are signed by the Executive and are approved by senators. In the 
case of trade agreements, before making a decision, senators may consider the opinion of the 
federative entities, as well as business and civil so ciety organizations and trade unions.17 
2.2  Trade Policy Formulation and Objectives  
2.13.  The formulation and implementation of trade policy continues to be the responsibility of the 
Ministry of Economic Affairs18, which works together with other Ministries to devel op a 
comprehensive policy for trade liberalization and promotion, and for attracting foreign investment. 
It collaborates in particular with the Ministry of Foreign Affairs, the Ministry of Finance and Public 
Credit (SHCP), the Ministry of Agriculture and R ural Development (SADER), and with the Ministry 
of the Environment and Natural Resources (SEMARNAT), the Ministry of Energy, the Ministry of 
Tourism, the Ministry of Health, and the Ministry of Defence.19 Local governments and interested 
parties are also c onsulted on the formulation of trade policy.  
2.14.  All measures concerning foreign trade, such as the establishment, increase, decrease or 
elimination of tariffs and tariff preferences, including those decreed by the Executive, must be 
assessed and approved by t he Foreign Trade Commission (COCEX) prior to implementation. 
If COCEX does not approve the measure, the relevant institutions may review and resubmit it. The 
Commission also periodically reviews existing measures, either ex officio  or at the request of the  
interested parties, in order to issue non -binding recommendations.20 The Commission comprises 
the Ministry of Economic Affairs (which acts as chair), the Ministry of Foreign Affairs, the Ministry 
of Agriculture and Rural Development, the Ministry of the E nvironment and Natural Resources, the 
Ministry of Health; and two autonomous constitutional bodies: the Bank of Mexico and the 
COFECE.21 
 
15 Articles 49 and 131 of the Political Constitution of the United Mexican States.  
16 The regulation expedited by the Executive in emergency situations is repealed as soon as the causes 
of the emergency cease to exist, or it may be incorporated into federal law if the Congress of the Union tables 
and approves the relevant draft law or decree.  
17 Law on the Conclusion of Agreements (Official Journal of 2 January 1992, latest amendment of 
20 May 2021). Law on the App roval of International Economic Treaties (Official Journal of 2 September 2004).  
18 Foreign Trade Law (Official Journal of 27 July 1993, latest amendment of 21 December 2006).  
19 Information provided by the authorities.  
20 Regulations implementing the Foreign  Trade Law (Official Journal of 30 December 1993, latest 
amendment  of 22 May 2014);  Ministry  of Economic  Affairs.  Viewed  at: http://www.siicex.gob.mx/portalSiicex/
COCEX/COCEX.htm ; and COFECE (2017), Política comercial con visión de competencia.  Viewed at: 
https://www.cofece.mx/cofece/images/Promocion/Estudios -y-Publicaciones/Cuaderno -de%20promocion -1-
Politica -comercial -con-vision -de-competencia -VF.pdf . 
21 The Tax Administration Service (SAT), the Office of the Attorney General (FGR) and the National 
Commission on Regulatory Improvement (CONAMER), may participate in COCEX meetings, without the right to 
vote. WT/TPR/S/429 /Rev.1  • Mexico  
 
- 42 - 
 
  2.15.  Prior to publication in the Official Journal, trade measures must undergo a regulatory 
improvement procedure carried ou t by means of a regulatory impact assessment (RIA), by the 
National Commission for Regulatory Improvement (CONAMER). This assessment, which is only 
carried out if the implementation of the measure is likely to involve a cost for private individuals, is 
aimed at ensuring that the benefits of the regulation are greater than the costs of compliance, and 
that the requirements and procedures are simplified and streamlined. Existing measures may also 
undergo an ( ex post ) RIA, which focuses on evaluating them, the ir effects and compliance. 
Depending on the result obtained, the measure will be retained, amended or abolished.22 For 
example, in 2020, new requirements for the importation and exportation of products intended for 
human consumption were subject to a RIA.23 
2.16.  Through the Joint Commission for the Promotion of Exports (COMPEX), representatives of 
the public and private sectors put forward, assess and develop proposals to streamline export 
procedures.24 
2.17.  Foreign trade policy and the strategies to achieve established objectives are set out in the 
National Development Plan (PND) (2019 -24) and the Sectoral Programme for the Economy  
(2020 -24), which is based on the PND. Mexico's trade policy operates at various levels, namely at 
the multilateral, regional, bil ateral and unilateral level.25 The country's trade policy objectives are 
to promote foreign trade, defend its trade interests, and negotiate, implement and administer 
trade agreements.26 While integration into international trade has fostered the growth, 
modernization and diversification of the Mexican economy, Mexico is seeking to attract more 
investment in sectors and regions that have, in the past, benefited to a lesser extent from trade 
integration.27 The aim is to encourage the development of high valu e-added sectors to promote 
innovation, the technological transformation of MSMEs and their integration into global value 
chains, and to increase the local content of exports. At the same time, Mexico continues to 
negotiate and improve market access in orde r to promote the growth and diversification of its 
exports. Women play a key role in Mexico's foreign trade strategies, in terms of fostering growth 
and reducing poverty.  
2.18.  To achieve the trade policy objectives, the Executive may decree, on an expedited bas is and 
if it is deemed "urgent", measures to regulate foreign trade. For example, it may amend 
nomenclature and tariff rates, and restrict or prohibit the importation and exportation (or transit) 
of goods.28 Since 2017, the Executive has decreed: (i) the i ncrease of tariff rates to defend the 
interests of the domestic steel, aluminium, footwear, and textiles and clothing industries; 
and (ii) the amendment of tariff nomenclature in order to facilitate its interpretation, with the aim 
of providing foreign trade operators with greater clarity regarding requests for tariff concessions or 
the implementation of new trade agreements. Furthermore, the Executive decided to eliminate 
tariffs on imports of electric vehicles (in order to meet the Paris Agreem ent obligations) and, in 
2021, on vaccines against the SARS -CoV-2 virus and aluminium containers for oxygen as a result 
of the pandemic. However, the importation and exportation of pesticides, e -cigarettes and similar 
personal electronic vaping devices, we re prohibited, in order to protect human health and the 
environment.29 
 
22 Information provided by the authorities; Gen eral Regulatory Improvement Law (Official Journal 
of 18 May 2018, latest amendment of 20 May 2021); and CONAMER. Viewed at: 
https://www.gob.mx/conamer/ acciones -y-programas/manifestacion -de-impacto -regulatorio -mir. 
23 Information provided by the authorities; and CONAMER. Viewed at: 
https://cofemersimir.gob.mx/expedientes/25222 . 
24 Foreign Trade L aw Regulations.  
25 Sectoral Programme for the Economy 2020 -24; Ministry of Economic Affairs press releases 
of 19 January 2021 and 22 May 2019. Viewed at: https://www.gob.mx/se/prensa/mensaje -de-la-secretaria -
de-economia -tatiana -clouthier -carrillo -en-reunion -con-reporteros -de-la-
fuente  and https://www.gob.mx/se/prensa/participacion -de-la-subsecretaria -de-comercio -exterior -luz-maria -
de-la-mora-en-el-panel -comercio -exterior -como -palanca -de-desarrollo ; and information provided by the 
authorities.  
26 Ministry of Economic Affairs press release of 19 January 2021.  
27 Ministry of Economic Affairs press release of 22 May 2019.  
28 Article 131 of the Political Constitution of the United Mexican States.  
29 The decrees issued by the Executive amend the Law on General Import and Export Taxes (LIGIE). For 
further  information,  see the National  Foreign  Trade  Information  System  (SNICE).  Viewed  at: https://www.snice
.gob.mx/cs/avi/snice/ligie.modificaciones.html  and https://www.snice.gob.mx/cs/av i/snice/tarifamodificaciones
.html . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  2.19.  The federal agency for the promotion of exports and investment, ProMéxico, was closed 
in 2019.30 Its competences were transferred to the Ministry of Economic Affairs, which were 
impleme nted in coordination with the Ministry of Foreign Affairs. In 2019, the Ministries of the 
Economy and of Foreign Affairs signed an agreement to collaborate on both the development of 
the strategy to promote exports and investment, as well as its implementa tion, which is carried 
out by Mexican representative offices abroad.31 Also in 2019, the Ministry of Economic Affairs 
created the International Business Centre (CINSE) to promote exports and imports. Moreover, in 
2020 and 2021, the Ministry of Economic Aff airs launched three platforms: ExportaMX and 
ComerciaMX, to increase the presence of Mexican products on the international market; and 
InvestinMX to provide information on the procedures for setting up foreign investment. As was the 
case in 2017, the Direc torate -General of Foreign Investment (DGIE) of the Ministry of Economic 
Affairs is responsible for foreign investment.32 
2.20.  For purposes of transparency, Mexico compiles and provides information on foreign trade, 
including tariff, non -tariff and statistical i nformation, through its online tariff information system 
(SIAVI  5.0) and the National Foreign Trade Information System (SNICE).  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.21.  Mexico is a founding Member of the WTO and grants, as a minimum, most -favoured -nation 
(MFN) treatment to all its trading partners. This is its seventh trade policy review. Since the 
previous review in 2017, Mexico has submitted various notifications to the WTO in compliance with 
the different Agreements (Table A2.1).  
2.22.  Mexico advocates a rules -based multilateral trading system, which contributes to more 
inclusive development. It supports the elimination of distortions in the agricultural and fisheries 
sectors.33 It also participates in joint initiatives to examine new trade issues, such as the 
integration of MSMEs into international trade, e -commerce, investment facilitation, services 
domestic regulation and environmental sustainability. Mexico participated in the preparatory work 
for the Twelfth  WTO Ministerial Conference (MC12), in particular the  drafting of various ministerial 
statements on the promotion of gender equality and women's economic empowerment within 
trade34; trade and environmental sustainability35; MSMEs36; and sanitary and phytosanitary 
issues37; as well as the Joint Statement on I nvestment Facilitation for Development.38 Mexico is a 
member of the  Asia-Pacific  Economic Cooperation (APEC) forum, the G20 and the Friends of 
Anti-Dumping Negotiations. It has also co -sponsored the joint proposal on a multilateral system 
for notifying and  registering geographical indications (GIs) for wines and spirits.  
2.23.  In 2016, Mexico ratified the Agreement on Trade Facilitation (TFA), which entered into force 
in 2017, and notified that it would immediately apply all the provisions of the TFA.39 In 
Januar y 2021, in order to implement the TFA, the National Trade Facilitation Committee was 
created, which has been in operation since March  2021.40 The Committee comprises 10 Ministries41 
and is chaired by the Ministry of Economic Affairs. Representatives of two  autonomous 
 
30 Decree authorizing the divestiture through closure of the public trust fund ProMéxico, deemed to be a 
parastatal body (Official Journal of 3 May 2019).  
31 Foreign Affairs Sectoral Programme 2020 -24. 
32 Ministry of Economi c Affairs. Viewed at: https://www.gob.mx/se/acciones -y-
programas/competitividad -y-normatividad -inversion -extranjera -direct a?state=published . 
33 WTO document WT/MIN(17)ST/102 of 5 January 2018.  
34 WTO document WT/MIN(21)/4/Rev.1 of 3 December 2021.  
35 WTO document WT/MIN(21)/6/Rev.2 of 14 December 2021.  
36 WTO document WT/MIN(21)/1 of 27 October 2021.  
37 WTO document WT/GC/W/835/Rev.1 -G/SPS/GEN/1758/Rev.10 of 22 November 2021.  
38 WTO document WT/L/1130 of 10 December 2021.  
39 TFA Database. Viewed at: https://tfadatabase.org/members/mexico . 
40 Decision permanently establishing the National Trade Facilitation Committee (Official Journal 
of 22 January 2021); and information provided by the authorities.  
41 Ministry of Economic Affairs, Ministry of Foreign Affairs, Ministry of Finance and Public Credit (SHCP) , 
Ministry of Agriculture and Rural Development (SADER), Ministry of the Environment and Natural Resources 
(SEMARNAT), Ministry of the Navy, Ministry of Defence, Ministry of Energy, Ministry of Infrastructure, 
Communications and Transport (SICT) and Minist ry of Health. Initially, the Ministry of the Navy did not 
participate in the Committee. It joined in September 2021.  WT/TPR/S/429 /Rev.1  • Mexico  
 
- 44 - 
 
  constitutional bodies (the Bank of Mexico and COFECE) also participate in the Committee's 
meetings, as do representatives of the Tax Administration Service (SAT) and CONAMER, although 
they do not have the right to vote. Representatives from the  private sector only participate when 
their contribution is justified, and they also do not have the right to vote.  
2.24.  Mexico has accepted the Protocol amending the Agreement on Trade -Related Aspects of 
Intellectual Property Rights (TRIPS). Mexico is not a party to the Agreement on Government 
Procurement or the Agreement on Trade in Civil Aircraft, nor does it have observer status in the 
Committee on Government Procurement or the Commit tee on Trade in Civil Aircraft. Mexico is not 
a party to the Information Technology Agreement (ITA)  either . Since 2015, Mexico has granted 
preferential treatment to services and service suppliers from least developed countries.42 
2.25.  Since 2017, there has been  one case against the trade measures adopted by Mexico, and 
the country has filed two complaints (Table 2.1). Mexico has participated as a third party in 29 
trade disputes.  
Table 2.1 Trade disputes, 2017 -22 
Member: trade measure at issue  Status  
Costa Rica: Measures Concerning the Importation of Fresh Avocados 
from Mexico (DS524)  13/04/2022: Panel report circulated  
United States: Certain Measures on Steel and Aluminium Products 
(DS551)  28/05/2019: Dispute settled (mutually 
agreed solution)  
Mexico: Additional Duties on Certain Products from the United States 
(DS560)  28/05/2019: Dispute settled (mutually 
agreed solution)  
Source:  WTO Secretariat.  
2.3.2   Regional and preferential agreements  
2.26.  Mexico has signed  several trade agreements (Chart 2.2). It is party to, inter alia , the Latin  
American Integration Association (LAIA), the Agreement between Mexico, the United States and 
Canada (T -MEC), the Comprehensive and Progressive Agreement for Trans -Pacific Partners hip 
(CPTPP) and the Pacific Alliance. Within the framework of LAIA, Mexico has several partial scope 
trade agreements that cover exclusively trade in goods. The agreement with MERCOSUR is limited 
to the automotive sector.  
 
42 WTO document S/C/N/821 of 21 August 2015.  WT/TPR/S/429 /Rev.1  • Mexico  
 
- 45 - 
 
  Chart 2.2 Trade agreements signed by Mexico in force in 2022  
 
Note:  AAP.A25TM: Partial Scope Agreement under Article 25 of the Treaty of Montevideo. AAP.CE: Partial 
Scope Economic Complementarity Agreement. AAP.R: Partial Scope Renegotiation  Agreement.  
Source:  WTO Secretariat.  
2.27.  Between 2017 and 2022, three agreements entered into force for Mexico: the CPTPP 
in 2018,  T-MEC in 2020 and the Trade Continuity Agreement with the United Kingdom in 2021. 
These agreements cover trade in goods and servi ces. The CPTPP and T -MEC include disciplines on 
new topics such as digital trade, SMEs, trade in sustainable goods and the environment.  
2.28.  The CPTPP was signed in 2018 and entered into force in the same year for Mexico with all 
Parties, except Viet Nam, with which it entered into force in 2019. The CPTPP includes almost all 
the provisions negotiated under the Trans -Pacific Partnership (TPP). In the CPTPP, Mexico retained 
the market access commitments established in the TPP.43 Pursuant to the negotiated text, Mexico 
applies the same tariff elimination schedule for all Parties, except Japan.44 The tariffs will be 
completely phased out in 2033, and in 2034 for Viet Nam (Table 2.2). Mexico also negotiated tariff 
rate quotas for ce rtain dairy products45 and products consisting of natural milk constituents, which, 
in general, apply to all Parties, except Chile and Peru. The quota for products consisting of natural 
milk constituents does not apply to Japan either. The quota volumes will increase gradually until 
2028 and will subsequently remain unchanged.46 
 
43 Government of Mexico. Viewed at: https://www.gob.mx/tratado -de-asociacion -
transpacifico/articulos/antecedentes -del-tpp and https://www.gob.mx/tratado -de-asociacion -
transpacifico/es/articulos/textos -del-tratado -integral -y-progresista -de-asociacion -transpacifico?idiom=es . 
44 The authorities indicated that, with Japan, a different tariff elim ination schedule was negotiated for 
heavy vehicles.  
45 Milk and cream, milk powder, evaporated milk, condensed milk, butter, cheeses and dairy -based 
preparations.  
46 WTO documents WT/REG395/1/Rev.1 and WT/REG395/1/Add.4 of 8 September 2021 
and 1 April 2021, respectively.  
ChilePanama MEXICOEU
Peru
ColombiaEFTA
Canada
BrazilArgentina
UruguayCuba
Ecuador
Bolivarian 
Republic of 
VenezuelaUnited 
States
ParaguayIsrael
Plurinational 
State of 
Bolivia
MERCOSURNicaraguaCosta Rica
Honduras
GuatemalaEl Salvador
PACIFIC
ALLIANCEJapan
Australia
New 
Zealand SingaporeUnited 
Kingdom
Malaysia Brunei 
DarussalamViet NamWT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table 2.2 Tariff elimination schedule agreed by Mexico under the CPTPP  
 Japan  Viet Nam  Other Parties  
End of the tariff elimination period  2033 2034 2033 
 (% of tariff lines)  
Immediate elimination  76.6 76.8 76.8 
Less than 10 years  79.5 79.7 79.7 
10 years  97.7 97.9 97.9 
More than 10 years  99.2 99.4 99.4 
Tariff remains  0.8 0.6 0.6 
Source:  WTO document WT/REG395/1/Add.4 of 1  April 2021; and information provided by the authorities.  
2.29.  T-MEC was signed in 2018, amended in 2019 and entered into force on 1  July 2020. It 
repealed the North American Free Trade Agreement (NAFTA), which had been in force since 1994. 
However, some of the provisions of NA FTA may continue to be applied on a transitional 
basis.47 T-MEC covers new topics such as trade facilitation, digital trade, the environment, 
competitiveness and the protection of labour rights. The other provisions were updated, including 
those relating t o rules of origin, government procurement, and the protection of investments and 
intellectual property rights.48 The Agreement also includes sectoral annexes to harmonize the 
technical requirements for certain products.49 T-MEC also stipulates that hydroca rbon deposits 
located in Mexican territory are the inalienable property of the State. It also includes a review 
clause to extend its initial duration (16 years).  
2.30.  T-MEC maintains the market access conditions agreed under NAFTA. Therefore, all goods 
originat ing in the region have a tariff of 0 %, except some poultry and dairy products and sugar 
containing products, for which access to the Canadian market remains restricted. As was agreed, 
Mexico did not change the access granted to 100 % of tariff lines with th e United States, and 
to 99.2% of tariff lines with Canada. Import tariffs still apply to 0.8 % of the remaining tariff lines 
with Canada. Mexico does not have tariff rate quotas under the Agreement.50 
2.31.   With regard to origin, T -MEC has amended certain criter ia (Box 2.2). Certification and the 
verification of origin procedure have also been simplified. Since 2020, origin can be certified by 
means of any trade document (such as an invoice), provided that the necessary information is 
supplied in order to verify compliance with the rules of origin. Furthermore, the certificate of origin 
may be completed and signed not only by the exporter but also by the producer. In the case of 
Mexico, after a transition period of 3.5 years, the certificate of origin may also be completed and 
signed by the importer.51 
Box 2.2 Rules of origin under T -MEC 
General rules of origin . A good is originating if it is:  
(a) wholly obtained or produced entirely in the region ; T-MEC includes fish obtained from aquaculture.  
(b) produced entirely in the region exclusively from originating materials; T -MEC includes recovered (recycled) 
materials, parts or components, used in the production of a remanufactured good or incorporated in th e 
production of such a good.  
(c) produced entirely in the region using non -originating materials. In this case, the good must be sufficiently 
worked or processed. T_MEC maintains the change in tariff classification requirement or, otherwise, requires 
regional value content (RVC) equivalent to 60% of the transaction value or 50% of the net cost. However, 
some tolerance is allowed ( de minimis  rule) so that goods produced in the region using non -originating 
materials retain their origin, without having to mee t the change in tariff classification or RVC requirements. 
Provided, of course, that the non -originating materials do not exceed a certain percentage of the transaction 
value or the net cost or, for textiles and clothing, the total weight . This percentage has increased from 7% 
under NAFTA to 10% under T -MEC, except for elastomeric content, for which the percentage remains 7%. 
T-MEC also includes sets of goods or composite goods. Therefore, since 2020, goods presented as sets are 
originating only if each goo d in the set is originating. If this is not the case, the value of all the non -originating 
goods in the set must not exceed 10% of the total value of the set.  
 
47 WTO document WT/REG407/1 of 23 August 2021.  
48 T-MEC, "Preguntas frecuentes".  Viewed at: https://www.gob.mx/t -mec. 
49 Chemical substances, cosmetic products, information and communication technology, e nergy 
performance standards, medical devices and pharmaceuticals (Chapter 12 of T -MEC).  
50 WTO document WT/REG407/1 of 23 August 2021.  
51 Article 5.2 of T -MEC. WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Specific rules of origin  The specific rules of origin of T -MEC are stricter, as the thresholds f or conferring 
origin are higher, in particular in the case of certain sectors such as the automotive, steel and aluminium 
sectors. For example, for many automotive goods, the RVC was increased from 62.5% under NAFTA to 75% 
under T -MEC. Furthermore, in orde r for goods to be granted origin, 70% of vehicle producers' purchases of 
aluminium and steel by value must come from the region, and origin is only conferred if the metal is melted 
and poured in the territory of one of the Parties. T -MEC also establishes a  labour value content (LVC) criterion 
to confer origin in the automotive sector.  
Source:  WTO Secretariat and T-MEC - Preguntas frecuentes. Viewed at: https://www.gob.mx/t -mec; 
and WTO document WT/REG407/1 of 23  August 2021.  
2.32.  In 2021, trade with the Parties to T -MEC accounted for 64.54 % of Mexico's total foreign 
trade (83.52 % of exports and 45.99 % of imports). The main products exported by Mexico were 
passenger vehicles, data -processing machines, and vehicle parts and  accessories. Mexico mainly 
imported petroleum oils (except crude oils), vehicle parts and accessories, and petroleum gases 
and gaseous hydrocarbons.52 
2.33.  In December  2020, Mexico and the United Kingdom signed the Trade Continuity Agreement, 
which entered into force on 1  June 2021 for Mexico.53 This Agreement maintains the provisions of 
the Economic Partnership, Political Coordination and Cooperation Agreement with the 
European  Union. Consequently, the tariff re duction programme, tariff rate quotas and rules of 
origin negotiated with the European Union apply to the United Kingdom. The Trade Continuity 
Agreement includes only the legal and technical changes required for the agreement to be 
implemented (the  mutatis  mutandis  principle). For instance, the volume and annual increases of 
tariff rate quotas have been modified, and the rule on the cumulation of origin has been extended. 
The Agreement is valid for a period of three years, during which Mexico and the United  Kingdom 
must negotiate a new trade agreement. In May  2022, negotiations had still not begun.  
2.34.  In 2018 the Second Amending Protocol to the Agricultural Agreement with Iceland entered 
into force.54 As agreed, Mexico immediately liberalized trade in water, in cluding mineral water.  
2.35.  In 2022, Mexico agreed on new provisions for trade in certain types of light motor vehicles 
with Argentina. The reduction of tariffs to 0 % scheduled for 2019 was postponed until 2022 and 
subsequently until 2025.55 Tariff rate quotas were maintained.56 In the case of Brazil, trade in light 
vehicles was liberalized in 2019, while the tariff reduction for heavy vehicles was postponed 
from 2020 to 2023, and a schedule was negotiated for a tariff reduction of 20 % (2020 -21), 
40% (2021 -22), 70% (2022 -23) and 100 % (as from 1  July 2023).57 
2.36.  In 2020, two amending protocols to the Additional Protocol to the Pacific Alliance Framework 
Agreement entered into force. Provisions on e -commerce and telecommunications services were 
amended, a new chapter on regulatory improvement was included, and an annex on cosmetic 
products was added to the chapter on technical barriers to trade. In 2022 the Pacific Alliance and 
Singapore signed a trade agreement.58 
2.37.  In 2020, Mexico and the EU concluded negotiati ons to extend the Economic Partnership, 
Political Coordination and Cooperation Agreement. The legal review of the text is being carried out 
in 2022.  
 
52 Ministry  of Economic  Affairs.  Viewed  at: https://www.economia.gob.mx/files/gobmx/comercioexterior
/fichas/TMEC.pdf ; and information provided by the authorities.  
53 Decree promulgating the Trade Continuity Agreeme nt between the United Mexican States and the 
United Kingdom of Great Britain and Northern Ireland (Official Journal of 1 June 2021).  
54 The Free Trade Agreement between Mexico and the EFTA States (Iceland, Norway and 
Switzerland/Liechtenstein) includes bila teral agreements on trade in agricultural goods.  
55 Sixth and Seventh Additional Protocols to Appendix I to AAP.CE: No. 55.  
56 Seventh Additional Protocol to Appendix I to AAP.CE: No. 55.  
57 Seventh Additional Protocol to Appendix II to AAP.CE: No. 55.  
58 Ministry of Economic Affairs. Viewed at: https://www.gob.mx/se/acciones -y-programas/cap itulado -
completo -del-tratado -de-libre-comercio -entre -la-alianza -del-pacifico -y-singapur -pasfta?state=published . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  2.3.3   Other agreements and arrangements  
2.38.  In 2022, within the framework of the Generalized System of Preferences (G SP), the 
authorities indicated that Mexico receives preferential treatment from Australia, Belarus, Japan, 
Kazakhstan, New Zealand, the Russian Federation and Türkiye. Mexico is a member of the Global 
System of Trade Preferences among Developing Countries (GSTP), but does not grant preferences.  
2.4  Investment Regime  
2.39.  Mexico's investment regime has not changed substantially since the previous review in 
2017. This regime is governed by the Constitution (Articles 25, 27 and 28) and the Foreign 
Investment Law (LIE)59 and its implementing regulations.60 The National Foreign Investment 
Commission (CNIE) issues general resolutions defining the criteria for the LIE and its implementing 
regulations.61 
2.40.  In 2022, Mexico has: 30 Reciprocal Investment Promotion and Protection Agreements 
(APPRI)62; 12 free trade agreements with investment clauses; one Cooperation and Investment 
Facilitation Agreement (CIFA)63; and 60 double taxation agreements.64 Mexico is party to the 
Convention establishing the Multilateral Investment Guarante e Agency (MIGA) and, since 2018, to 
the Convention on the Settlement of Investment Disputes between States and Nationals of Other 
States (ICSID Convention).  
2.41.  Mexico does not impose foreign exchange controls, or restrictions on capital repatriation or 
the pa yment of profits, dividends, interest or royalties abroad. However, remittances, including the 
payment of dividends and profits, and any type of income, are taxed.65 According to the provisions 
of the APPRI and the trade agreements, Mexico may temporarily limit transfers abroad to protect 
the balance of payments.  
2.42.  As was the case in 2017, some activities are reserved to the State (Table 2.3) and, in 
accordance with the Constitution, these activities are not considered monopolies (Article 28). The 
State also owns salt pans and mineral deposits, the exploration and exploitation of which require a 
concession.66 To obtain this concession, foreigners must be domiciled in Mexico and must sign an 
agreement with the Ministry of Foreign Affairs, in which they accept t o be considered as Mexican  
nationals and renounce the diplomatic protection of their country of origin (Calvo Doctrine). Any 
dispute with the Mexican State can only be settled in Mexican courts.67 No concessions are granted 
to foreigners within restricted areas (within 100  km of the country's borders and within 50  km of 
any coastline).  
 
59 Foreign Investment Law (LIE) (Official Journal of 27 December 1993, latest amendment 
of 15 June 2018).  
60 Regulations implementing the Foreign Investment Law and the National Foreign Investment Registry 
(Official Journal of 8 September 1998, latest amendment of 17 August 2016).  
61 The CNIE is chaired by the Ministry of Economic Affairs and composed of nine other Ministries: the 
Ministry of the Int erior; the Ministry of Foreign Affairs; the Ministry of Finance and Public Credit (SHCP); the 
Ministry for Wel l-being ; the Ministry of the Environment and Natural Resources (SEMARNAT); the Ministry of 
Energy; the Ministry of Communications and Transport (S CT); the Ministry of Labour and Social Security ; and 
the Ministry of Tourism. The General Resolutions of the CNIE can be viewed at: 
https://www.gob.mx/se/acciones -y-programas/competitividad -y-normatividad -inversion -extranjera -
directa?state=published . 
62 Since 2017, three APPRI have entered into force ( Hong Kong, China; Türkiye and 
United  Arab Emirates).  
63 The CIFA with Brazil entered into force in 2018.  
64 Since 2017, five agreements have entered into force (Argentina, Costa Rica, Jamaica, Philippines and 
Kingdom of Saudi Arabia).  
65 The tax is calculated by multiplying the dividend, income, distributed profit or remittanc e amount by a 
factor of 1.4286, and applying a rate of 30 % to the result (Tax Regime for Foreign Residents). Viewed at: 
https://imcp.org.mx/IMG/pdf/ANEXO_NOTICIAS_FISCALES_166 -2.pdf. 
66 Article 27 of the Political Constitution of the United Mexican States.  
67 In addition to the agreement, foreigners f rom States with which Mexico does not have diplomatic 
relations require a permit from the Ministry of Foreign Affairs (Article 10 -A of the LIE; and Ministry of Foreign 
Affairs). Viewed at: https://sre.gob.mx/convenio -de-renuncia -con-el-objeto -de-obtener -concesiones -para-
exploracion -y-explotacion -de-minas -y-aguas -en-el-territorio -nacional . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table 2.3 Activities reserved to the Mexican State and to Mexicans, 2017 -22 
Activities reserved to the Mexican State  Activities reserved to Mexicans  
Exploration and extraction of hydrocarbons  Domestic land transportation of passengers, tourists 
and freight  
Planning and control of the national electrical grid; 
transmission and distribution of electric power  Development banking  
Radioactive minerals and nuclear power generation  Professional and technical services expressly stipulated 
in the applicable legal provisionsa 
Postal, telegraph and radio -telegraphy services   
Control, supervision and surveillance of ports, 
airports and heliports   
Minting of coins and issuing of banknotes   
a There is no consolidated list.  
Source:  Article 28 of the Political Constitution of the United Mexican States and Articles 5 and 6 of the LIE.  
2.43.  Moreover, as was the case in 2017, only Mexicans (natural or legal persons) can provide 
development banking and domestic land transportation services, as well as certain professional 
services (Table 2.3). Foreigners cannot provide these services, and canno t participate directly or 
indirectly as partners or shareholders in Mexican companies providing these services.68 However, 
while domestic land freight transportation services are reserved to Mexicans, foreigners can 
provide messenger and parcel services.  
2.44.  In the sectors and activities in which foreigners may participate, foreign investment must be 
registered in the National Foreign Investment Registry (RNIE), which is managed by the 
Directorate -General of Foreign Investment (DGIE) of the Ministry of Economic  Affairs. In principle, 
foreigners do not require prior authorization to invest. However, in certain cases, they require 
authorization from the CNIE to make investments above 49 % of the share capital, and 
authorization from the Ministry of Economic Affairs  and, where appropriate, from the National 
Banking and Securities Commission (CNBV), to use the neutral investment mechanism . 
2.45.  Mexico grants national treatment to foreign investors. Consequently, foreigners can acquire 
fixed assets, enter new fields of econ omic activity or manufacture new product lines, and open and 
operate establishments or expand or relocate existing ones. They can also, in principle, hold "any 
proportion", or up to 100 % of the share capital of Mexican companies.69 However, Mexico still 
imposes caps on foreign direct investment (FDI) in certain activities and companies (Table 2.4). 
In 2017, the cap increased from 25 % to 49 % for air transport, including domestic air transport, 
international air taxi services and specialized air transport.70 Furthermore, in the framework of the 
air services agreements negotiated by Mexico, Mexican airline companies providing international 
services must be controlled by Mexicans (that is, Mexicans must hold 51 % of the capital).  With 
regard to broadcasting, the LIE allows for FDI of up to 49 %, provided that there is reciprocity with 
the country or territory in which the investor or economic operator that, directly or indirectly, 
controls the investor is incorporated.  
Table 2.4 Economic activities and companies subject to specific regulation, 2017 -22 
(Changes are highlighted in grey)  
FDI cap  Activity or company  
10% Production cooperatives  
25% Until 2017: domestic air transport (scheduled and chartered); air taxi chartered international 
air transport; specialized air transport  
49% Manufacture and marketing of explosives, firearms, cartridges, munitions and fireworks 
Excluding the acquisition, preparation or use of expl osives for industrial and mining activities  
Printing and publication of newspapers for circulation in Mexico only  
T-series shares of companies that own agricultural, livestock farming or forestry landsa 
Fresh water, coastal and exclusive economic zone fishing. Excluding aquaculture  
National Ports System Administrations (ASIPONA)/Integrated Port Administrations (AP I) 
Port pilotage services for vessels navigating inland waterways  
Shipping companies dedicated to the commercial operation of vessels for navigating inland 
waterways and cabotage, excluding tourist cruises, dredging activities, and floating or fixed 
 
68 This is the "foreigners exclusion clause" (Articles 2 and 6 of the LIE).  
69 Article 4 of the LIE.  
70 Article 7 of the LIE, amended by the Decree published in the Official Journal of 26 June 2017.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  FDI cap  Activity or company  
structures for the building, maintenance and operation of ports  
Supply of fuel and lubricants for vessels, aircraft and railroad equipment  
Broadcasting  
Since 2017: domestic air transport (scheduled and chartered); international air taxi services; 
specialized air transport  
49% or, if 
approved by 
the CNIE, up 
to 100%  Port services for vessels engaged in inland waterway operations, such as towing, mooring 
and lighterage  
Shipping companies engaged in the operation of ships solely for high-seas traffic  
Concessionaires or permit -holders for aerodromes for public use  
Preschool, primary, secondary, higher secondary, higher and combined private education 
services  
Legal services  
Construction, operation and operation of railroads deemed means of general communication, 
and the provision of public railway services  
a Under the Land Law, companies owning agricultural, livestock farming and forestry land issue 
T-series shares to cover the share of capital contributed in the form of land or used to acquire it.  
Source:  Articles 7 and 8 of the LIE.  
2.46.  For certain a ctivities and companies, FDI normally is limited to 49 %, but foreigners can 
exceed this limit (and even invest up to 100 %) if they obtain an authorization from the CNIE 
(Table 2.4). The CNIE takes 45 days to issue an authorization, which is subject to an e conomic and 
environmental impact study of the investment. The CNIE may also impose requirements as a 
condition for the investment, provided that these requirements do not distort international trade.71 
Furthermore, for reasons of national security, the CNIE may forbid foreign investment.72 The 
authorities indicated that, between 2017 and 2021, the CNIE approved FDI exceeding 49 % in 26 
companies, over half  of which provided private education services.  
2.47.  Moreover, foreigners require authorization from the CNIE to make investments above 49 % 
in the share capital of Mexican companies with assets that, in total, exceed a given amount 
(since  2020, MXN  20,185  million).73 The authorities indicated that, during the review period 
(2017 -21), in the majority of cases, foreign investment did not require the authorization of 
the CNIE.  FDI in three  companies was authorized by the CNIE.  
2.48.  Despite the existing restrictions, foreigners may use the neutral investment mechanism t o 
participate in activities reserved to Mexicans or to invest in activities and companies subject to 
foreign investment limits (although 100 % neutral investment is not permitted in this case).74 
Consequently, through the neutral investment mechanism, forei gners may participate in the share 
capital of Mexican companies, without their investment being counted as a foreign investment. For 
this type of investment, economic rights are conferred on foreigners as a result of their role as 
investors (shares or stoc ks). However, they may not be involved in the company's decision -making 
processes, or control it. Authorization from the Ministry of Economic Affairs is required to use the 
neutral investment mechanism. Companies operating in the banking sector or listed o n the stock 
exchange also require authorization from the CNBV as well as from the Ministry of Economic 
Affairs.75 
2.49.  Mexico restricts the acquisition of land by foreigners, depending on the location and the 
intended use of the land (Table 2.5). Furthermore, a lthough the right to private property is 
recognized by the Constitution, the Executive may issue declarations of public interest to 
expropriate private assets.76 
 
71 Article 29 of the LIE.  
72 Article 30 of the LIE.  
73 The amount i s periodically updated. In 2017 -18, the amount was MXN 16,816 million; in 2018 -19, 
MXN 18,211 million; and in 2019 -20, MXN 19,559 million (Article 9 of the LIE and the Third General Resolution 
determining the amount of the total value of the assets referre d to in Article 9 of the LIE (Official Journal 
of 7 May 2020)).  
74 Ministry of Economic Affairs, "Preguntas Frecuentes" . Viewed at: https://www.gob.mx/se/acciones -y-
programas/competitividad -y-normatividad -inversion -extranjera -directa?state=published . 
75 Articles 18 -20 of the LIE.  
76 Article 27 of the Political Constitution of the United Mexican States; and Article 2 of the Law o n 
Expropriation (Official Journal of 25 November 1936, latest amendment of 27 January 2012).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table 2.5 Private property regime for foreigners, 2017 -22 
 Foreign natural and legal persons  Mexican companies with majority 
foreign capital  
Restricted 
areaa They may not purchase immovable property (for 
example, land), regardless of whether it is for 
residential or non -residential purposes. However, they 
may enjoy the usufruct of residential property, and 
conclude a trust contract with a bank established in 
Mexico (duration of the contract: 50 years, renewable 
indefinitely for equal periods of time)c. They may buy residential and 
non-resident ial immovable property, 
provided that they invoke the Calvo  
Doctrine.b The purchase of 
non-residential property must be 
notified to the Ministry of Foreign 
Affairs.  
Rest of 
territory  They may purchase residential and non -residential immovable property, provided that they 
invoke the Calvo Doctrine.b 
a Within 100  km of the country's borders and within 50  km of any coastline.  
b Moreover, foreigners from States with which Mexico does not have diplomatic relations require a 
permit from the Ministry of Foreign Affairs.  
c The trust contract must be registered with the RNIE.  
Source:  Article 27 of the Political Constitution of the United Mexican States; Articles 10 and 10 -A of the LIE; 
and the Ministry  of Foreign  Affairs.  Viewed  at: https://sre.gob.mx/permiso -para-constituir -un-fideico
miso-en-zona-restringida ; https://sre.gob.mx/convenio -de-renuncia -para-la-adquisicion -de-bienes -i
nmuebles -fuera-de-zona-restringida ; and https://sre.gob.mx/aviso -de-adquisicion -de-inmuebles -por
-sociedades -mexicanas -con-clausula -de-admision -de-extranjeros -en-la-zona-restringida -que-se-dest
inen-a-un-fin-no-residencial . 
2.50.  Foreigners may set up commercial companies in Mexico or establish branches or 
representative offices. There are seven types of commerci al structure, which are regulated by the 
General Law on Commercial Companies (LGSM), namely: the general partnership ( la sociedad en 
nombre colectivo ); the limited partnership ( la sociedad en comandita simple ); the limited liability 
company ( la sociedad de  responsabilidad limitada or SRL); the public limited company ( la sociedad 
anónima or SA); the partnership limited by shares ( la sociedad en comandita por acciones ); the 
cooperative ( la sociedad cooperativa ); and the simplified joint -stock company ( la soci edad por 
acciones simplificada ).77 The most -used types are SAs and SRLs.78 The former can be transformed 
into investment promotion companies (SAPI), which are regulated by the LGSM and the Securities 
Market Law.79 
2.51.  In Mexico, the company name or trade name (words, letters or symbols) must be approved 
by the Ministry of Economic Affairs, which is the first step in setting up a company (Chart 2.3). The 
use of a company name or trade name shall be denied if it is the same as or similar to that of 
another compan y or registered trademark in Mexico.80 To establish branches and representative 
offices, foreigners must appoint a legal representative with Mexican nationality or a foreigner with 
permission to work in Mexico. Furthermore, with some exceptions, authorization from the Ministry 
of Economic Affa irs is required to establish branches and representative offices.81 
 
77 Law on Commercial Companies (Official Journal of 4 August 1934, latest amendment 
of 14 June 2018). In 2018, the procedures to dissolve or liquidate companies wer e reviewed.  
78 Ministry of Economic Affairs. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/202336/Sociedades..pdf . 
79 Securities Market Law (Official Journal of 30 December 2005, latest amendment of 9 January 2019).  
80 Government of Mexico. Viewed at: https://mua.economia.gob.mx/mua -web/preguntasFrecuentes . 
81 Article 17 of the LIE; N otice for the establishment of foreign legal persons in the Mexican Republic. 
Viewed  at: https://www.gob.m x/cms/uploads/attachment/file/692124/aviso_de_establecimiento_de_personas
_morales_extranjeras_en_la_republica.._.pdf ; and Notice for the establishment of foreign legal persons in the 
Mexican  Republic  for the provision  of services.  Viewed  at: https://www.gob.mx/cms/uploads/attachment/file/6
92125/aviso_establecimiento_personas_morales_extranjeras_ republica_mexicana_prestacion_servicios.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Chart 2.3 Steps to setting up a company  
 
Source:  Government of Mexico. Viewed at: https://www.gob.mx/tuempresa . 
 
 
STEP 1Request 
authorization 
to use the 
company name 
or trade name
STEP 2Incorporate 
the company
STEP 3Obtain notice 
of use of the 
company name 
or trade name
STEP 4Register with 
the Public 
Registry of 
Commercial 
Entities 
STEP 5Register with 
the Federal 
Taxpayers 
Registry
STEP 6
 STEP 7Register with 
the Mexican 
Social Security 
Institute Register with 
state and 
municipal 
bodies, 
depending on 
the type of 
activityWT/TPR/S/429 /Rev.1  • Mexico  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Registration, documentation and customs procedures  
3.1.  The legal framework governing Mexico's customs procedures comprises chiefly th e Customs 
Law and its implementing Regulations, the Foreign Trade Law (LCE) and its implementing 
regulations, the General Foreign Trade Rules published each year by the Tax Administration 
Service (SAT), the general rules and criteria in respect of foreign trade issued by the Ministry of 
Economic Affairs (SE), and resolutions concerning customs -related provisions of Free Trade 
Agreements, issued by the Ministry of Finance and Public Credit (SHCP).1 The legal framework also 
includes legislation governing dom estic and import taxes.2 
3.2.  Until 2021 the General Customs Administration (AGA), a unit of the SAT, was responsible 
inter alia for facilitating and controlling the entry (and exit) of goods into (and from) Mexican  
territory, as well as for applying customs a nd fiscal provisions governing the entry (or exit) of 
goods. The Mexican National Customs Agency (ANAM) was established in 2021, replacing the AGA. 
Like its predecessor, ANAM is responsible for managing, organizing and operating customs and 
inspection serv ices, applying and enforcing the legal rules governing the entry (and exit) of goods 
into (and from) Mexican territory, and collecting tariffs and other duties related to foreign trade 
operations.3 The SE also has influence over the entry (and exit) of go ods into (and from) Mexican  
territory, as it lays down measures governing or restricting the import (or export) of goods, and on 
the movement or transit of foreign goods in Mexican territory. Various other authorities also 
participate in the process, inclu ding the Ministries of Health (SSA), National Defence (SEDENA), 
Environment and Natural Resources (SEMARNAT) and Agriculture and Rural Development 
(SADER), in connection with their responsibilities to award permits, licences, authorizations or 
certificates  for imports (or exports).  
3.3.  Reflecting the changes referred to above, since 2022 customs clearance for imports (and 
exports) of goods has been conducted by ANAM. ANAM is specifically responsible for verifying the 
data contained in requests, declarations or statements, including verification of origin, for 
collecting taxes and customs clearance fees, and for verifying compliance with non -tariff 
regulations and restrictions. ANAM is also responsible for seizing or detaining goods whose lawful 
presence in the c ountry cannot be established and for safekeeping those goods in its capacity as 
their custodian.4 
3.4.  Mexican import requirements have not changed significantly since the previous review in 
2017. The declaration accompanying the goods presented to customs for  entry into (or exit from) 
Mexico must state the customs procedure intended to be used. Mexico has six types of customs 
procedure: outright importation (exportation); temporary importation (exportation); in -bond 
storage; goods in domestic or international transit; manufacturing, processing or repair in an 
in-bond facility; and strategic in -bond facility.5 
 
1 Customs Law (Official Journal of 15  December 1995, most recent amendment of 12  November 2021); 
Regulations implementing the Customs Law (Official Journal of 20 April 2015); Foreign Trade Law 
(Official  Journal of 27 July 1993, most recent amendment of 21  December  2006); Regulations implementing 
the Foreign Trade Law (Official Journal of 30  December  1993, most recent amendment of 22  May 2014); and 
General Foreign Trade Rules for 2022 (Official Journal of 24  Decem ber 2021, most recent amendment 
of 2 March 2022).  
2 Law on General Import and Export Taxes (Official Journal of 1  July 2020, most recent amendment 
of 22 November 2021, repealing the law published in the Official Journal of 18  June 2007) and Federal Law on 
Duty (Official Journal of 31  December  1981, most recent amendment of 12  November  2021).  
3 Decree establishing the Mexican National Customs Agency as a decentralized administrative body of 
the Ministry of Finance and Public Credit (Official Journal of 14  July 2021).  
4 Decree amending and supplementing various provisions of the Internal Regulations of the Ministry of 
Finance and Public Credit and the Internal Regulations of the Tax Administration Service, and issuing the 
Internal Regulations of the National C ustoms Agency of Mexico (Official Journal of 21  December 2021).  
5 Articles  90-135 of the Customs Law; and information available online. Viewed at: 
http://omawww.sat.gob.mx/aduanasPortal/Paginas/index.html#!/regimenes . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.5.  Importers must be enrolled in the Federal Register of Taxpayers. Any natural or legal person 
conducing import operations must also be listed in the Regis ter of Importers.6 Importers of certain  
products (classified under 16 HS Chapters) must also be enrolled in the Register of Importers in 
Specific Sectors.7 The products subject to this requirement vary depending on the risk models 
drawn up by the customs  authorities for each product. However, importers of goods such as 
orthopaedic equipment and some agricultural inputs and machinery do not require any enrolment 
at all.8 The authorities are of the view that these registers allow them to exercise greater control 
over importers, foreign trade operations and compliance with tax obligations while enabling them 
to prevent and detect customs fraud, including smuggling. Importer  registrations can be 
suspended in the event of failure to fulfil the requirements laid down in customs and related 
regulations.9 
3.6.  It is necessary in Mexico to employ a customs broker, a customs agency or a legal 
representative because importers are not pe rmitted to conduct customs clearance formalities 
first-hand. The importer's customs broker, customs agency or legal representative, who must hold 
Mexican nationality, provides the import declaration and presents it electronically together with the 
other su pporting documents: commercial invoice; bill of lading, air waybill or transport document; 
and, where necessary, documentation showing compliance with any applicable non -tariff 
regulations and/or restrictions, as well as the source and origin of goods in c ases where tariff 
preferences, countervailing duties, quotas or country -of-origin marking requirements are 
applicable. For goods that present a potential risk to public health or national security, and for 
products of animal or plant origin, documents enab ling the identification, examination and control 
of the goods must also be attached together with any plant and animal health certificates. The 
documents are processed through the Single Window for Mexican Foreign Trade (VUCEM) 
(previously known as Mexico' s Digital Window for Foreign Trade (Digital Window)), which was 
modernized in 2018. Users send information once, electronically, to carry out importation 
procedures and satisfy the various relevant non -tariff regulations and restrictions for foreign trade 
issued by 10  government bodies: SAT, the Directorate -General of Standards (DGN), SADER, 
SEMARNAT, SEDENA, SSA, the Ministry of Energy (SENER), the Federal Environmental Protection 
Agency (PROFEPA), the National Institute of Fine Arts and Literature (INBAL) , the National 
Institute of Anthropology and History (INAH) and two  regulatory bodies – the Mexican Coffee 
Production Chain Association (AMECAFE) and the Regulatory Board for Tequila (CRT).10 
3.7.  Imports are subject to a customs processing fee (DTA), which var ies according to the 
customs procedure applicable to the goods and in some cases is calculated on the f.o.b. value of 
the imports (Table 3.1). Some imports, such as natural gas, are exempt from payment of this 
fee11, as are goods originating in States Part ies to the following trade treaties or agreements: the  
Mexico -United  States -Canada Agreement (T -MEC), the Free Trade Agreement between the 
Republic  of Chile and the United Mexican States (TLCCH), the Free Trade Agreement between the 
United Mexican States a nd the Republic of Colombia (TLCC), Economic Complementarity 
Agreement  No. 66 between the United Mexican States and the Plurinational State of Bolivia 
(ACE No. 66) and the Free Trade Agreement between the United Mexican States and the Republics 
of Costa Rica, El  Salvador, Guatemala, Honduras and Nicaragua (TLCCA).12 The DTA is paid in the 
form of the general import tax (IGM) or the general export tax (IGE). Where the imports (or 
 
6 Article  59(IV) of the Customs Law.  
7 These products include chemical, radioactive and nuclear products; chemical precursors; firearms and 
knives, parts thereof, ammunition; explosives  and explosive -related material; chemicals, material for 
pyrotechnical use or for fireworks involving explosives; cold steel weapons, accessories and exploders; 
weapons -related machinery, appliances, devices and artefacts and others; cigars; footwear; text iles and 
made -up articles; ethyl alcohol; hydrocarbons and fuels; iron and steel materials and products; and 
automotive products (Annex 10 to the General Foreign Trade Rules for 2022 (Official Journal 
of 6 January  2022)). Information viewed at: https://www.sat.gob.mx/normatividad/14537/reglas -generales -
de-comercio -exterior -(rgce) . 
8 Annex 7 to the General Foreign Trade Rules for 2022 - Inputs and various g oods related to the 
agricultural sector referred to in Rule 1.3.1(XI) (General Foreign Trade Rules for 2022: Rule  1.3.1). Viewed at: 
https://www.sat.gob. mx/normatividad/14537/reglas -generales -de-comercio -exterior -(rgce). 
9 Article  144 (XXXVI) of the Customs Law and Rule  1.3.3. Grounds for suspension from the registers 
under the General Foreign Trade Rules for 2022 of 24  December 2021.  
10 Information on the Single Window. Viewed at: 
https://www.ventanillaunica.gob.mx/vucem/ventanillaunica.html . 
11 Federal Revenue Law for fiscal year 2022 (Official Journal of 12  November 2021).  
12 Rule 5.1.4. of the General Foreign Trade Rules for 2022 of 24  December 2021.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  exports) are exempt from duty, the DTA is paid when the goods are remov ed from the in -bond 
facility.13 
Table 3.1 Customs processing fee (DTA) rates, 2022  
Type of import or procedure  Rate of duty 2022 (2016)  
Outright importation procedure  0.008% of the value of the goods  
Temporary import of fixed assets by in -bond assembly plants 
(maquiladoras) or firms with export programmes authorized by the  SE 0.176% of the value of the goods  
Import of machinery and equipment under the in -bond-facility 
manufacturing, processing or repa ir procedure  
Temporary import of goods for manufacturing, processing or repair in 
enterprises with Manufacturing, Maquila and Export Services Industry 
(IMMEX) programmes  MXN 352 (287)  
Import of goods exempt from trade taxes  
Operations involving the return of imported goods  
Temporary import of goods to be returned in their original state  
Imports under the in -bond-facility manufacturing, processing or repair 
procedure or under the respective return procedure  
Import of goods having no customs value  
Operations carried out by foreign States  MXN 346 (287)  
Domestic transit  MXN 352 (287)  
International transit  MXN 335 (273)  
Extraction from the procedure for in -bond storage for return  MXN 352 (287)  
Rectification of import declaration  MXN 339 (276)  
Gold imports  0.008% of the value of the gold  
(not exceeding MXN  3,734 (3,043))  
Source:  Article  49 of the Federal Law on Duty and Annex  19 to the Omnibus Tax Resolution for 2022 (Official  
Journal of 27  December  2021). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5639466&fecha=27/12/2021 . 
3.8.  Once the taxes have been paid, the non -tariff requirements satisfied and the declaration 
validated through the Electronic Customs System, the Automated Selection Module (MSA) that 
determines whether a customs inspection is required, is activated.14 If the MSA determines that no 
customs inspection is required, the goods are cleared immediately. In the event that the MSA 
determines that an inspection is required, the customs authority to which the goods are presented 
inspects the documents and conducts a physical inspection in the in -bond facility.15 If no 
irregularities that might give rise to a preventive embargo on the goods are detected, the goods 
are released immediately.16 A preventive embargo on the goods may be replaced by security in 
accordance with the provisions of the Federal Tax Code.17 Irrespective of the outcome of the MSA, 
the customs authority reserves the right to order verification of the goods or to exercise any of its 
inspection powers.  
3.9.  According to data provided by the authorities, during the period from 2017 
to 2021,  9.34% of import transactions were subje ct to customs inspection. Of this 
percentage,  0.29% led to a preventive embargo of goods. The time required for customs clearance 
is usually 2.62  hours for goods subject to customs inspection and 9.1  minutes for goods not 
subject to this requirement.  
3.10.  During the review period, changes were made regarding registration in the Comprehensive 
Enterprise Certification Scheme. As a result, since 2018 it has been possible to use Authorized 
Economic Operator (AEO) arrangements to register businesses  involved in outsourcing logistics 
services and general deposit warehouses. The concept of certified commercial partner (SCC), 
which covers natural or legal persons who are involved in the logistics chain as providers of import 
(or export) services, was st rengthened and the period of validity of certification was increased 
 
13 Article  49 of the Federal Law on Duty.  
14 The mechanism makes a random selection of customs declarations for inspection. This is based on an 
intelligent risk analy sis system that takes into account information on the type of importer (exporter), the 
product, its value, the country of origin, and the risks associated with plant and animal health, national 
security, smuggling and fraud.  
15 Article 43 of the Customs Law . 
16 Article  151 of the Customs Law lists the circumstances in which the customs authorities will impose a 
preventive embargo on goods.  
17 Article  154 of the Customs Law.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  from one  year to two.18 At 31  December  2020 there were 1,123  certified businesses: 651 AEOs, 
428 SCCs and 44 marketing and importing companies.19 
3.11.  VAT and IEPS (special tax on production a nd services) certification is used to award 
taxpayers who import goods under the temporary import procedure a 100 % tax credit for the VAT 
and IEPS that their temporary imports generate.20 At 31  December  2020, 3,467 businesses held 
VAT and IEPS  certificatio n. The bulk of them imported goods for use under the IMMEX programme 
(3,425) or under import procedures such as in -bond storage (21); strategic in -bond facility (20); 
and manufacturing, processing or repair in an in -bond facility (1). The sectors that are the chief 
beneficiaries of certification include auto parts, electronics, metalworking, plastics and rubber, 
textiles and clothing and the electricity sector.21 
3.12.  During the review period, Mexico continued to implement trade -facilitation measures such 
as (a) electronic customs clearance (paperless customs), via presentation of an electronic 
declaration; (b)  establishment of conditions for implementing customs clearance using 
consolidated declarations; and (c) modernization of the VUCEM. Moreover in 2021, Mexi co 
established the National Trade Facilitation Committee to implement the WTO Agreement on Trade 
Facilitation.  
3.13.  Additionally, owing to the COVID -19 emergency, import procedures were eased to enable 
the Ministries of Health, Defence and the Navy, the Institu te of Health for Well -being, the Mexican 
Social Security Institute and the Social Security and Social Services Institute for State Workers to 
obtain the goods and services required to address the situation, for example medical equipment, 
diagnostic agents,  surgical and therapeutic material and hygiene products.22 
3.1.2   Customs valuation  
3.14.  Since the last review in 2017, the procedures for determining the customs value of imported 
goods have not undergone any substantive changes. The customs value is determined in 
accordance with the WTO Agreement on Customs Valuation and the Customs Law. In general, the 
customs value is the transaction value, and when it is not possible to determine the customs value 
on that basis, the alternative methods of valuation  set out in the WTO Agreement are used 
(Articles 65 -71 and 78 of the Customs Law).  
3.15.  Since 2018, importers have been required to supply their customs clearance broker or 
agency with a manifest setting out the information necessary to determine the customs va lue of 
the goods. The importer must keep the manifest in a digital format and obtain the information, 
documents and other evidence needed to verify that the declared value has been determined in 
conformity with the law, and provide that evidence to the cus toms authorities should they so 
require (Article  59 of the Customs Law).23 This change was introduced so that the customs 
authority can verify the declared value and determine the customs value when the data concerning 
a supplier abroad or the importer's t ax residence are false or unavailable. Importers have the 
right, prior to the release of the goods, to request the reasons for selecting the valuation method 
or information used to determine their goods' customs value (Article  78-B of the Customs Law). 
 
18 Decree amending, supplementing and repealing various provisions of the Customs Law 
(Official  Journal  of 25 June 2018).  Viewed  at: http://dof.gob.mx/nota_detalle.php?codigo=5528958&fecha=25/
06/2018 ; General Foreign Trade Rules 2018. Viewed at: https://www.sat.gob.mx/normatividad/97466/regla s-
generales -de-comercio -exterior ; and General Foreign Trade Rules 2020. Viewed at: 
https://www.sat.gob.mx/normatividad/36272/reglas -generales -de-comercio -exterior -(rgce). 
19 Information provided by the authorities.  
20 Temporary import operations have generated VAT and IEPS since 1  January 2014 (Decree 
amending,  supplementing and repealing various provisions of the Law on Value -Added Tax, the Law on the 
Speci al Tax on Production and Services and the Federal Law on Duty; enacting the Law on Income Tax; and 
repealing the Law on the Flat -Rate Business Tax and the Law on the Tax on Cash Deposits (Official Journal 
of 11 December  2013)).  
21 Information provided by th e authorities.  
22 Decision establishing extraordinary measures that must be taken to procure and import the goods 
and services referred to in Article 2(II and III) of the Decree establishing extraordinary health measures in 
regions affected throughout the n ational territory in response to high -priority severe illness caused by 
the SARS -CoV2 virus (COVID -19), published on 27  March 2020 (Official Journal of 3  April 2020, most recent 
amendment of 22  October 2020).  
23 Articles  59(III), 66 and 78 -A of the Customs Law, as amended by the Decree published in the 
Official  Journal of 25  June 2018.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  According to the authorities, in the majority of cases (72.5 % in 2021) the transaction value was 
used.  
3.16.  Mexico still uses estimated prices to value certain goods in order to prevent undervaluation 
and tax evasion. The prices cannot be used to determine the tax  base for tariffs because they act 
solely as a benchmark to identify when the value declared in an import declaration is lower than 
the value of the goods, and to determine the sum that must be deposited by way of security in 
case of potential tax implicat ions. Importers must deposit a security in order to import any goods 
on the basis of an estimated price. Since 2019, estimated prices have been used for imports of 
footwear, textiles and clothing, and the law allows them to be used also for vehicles, regar dless of 
the origin of the imports.24 
3.1.3   Rules of origin  
3.17.  Mexico still uses preferential and non -preferential rules of origin. As in 2017, 
non-preferential rules of origin are used to determine the origin of imports subject to anti -dumping 
or countervailing du ties, in order to prevent circumvention by means of reshipment of goods 
through third countries.25 
3.18.  In general, the preferential rules of origin in agreements that have entered into force 
since 2017 follow the same lines as those in the agreements previousl y signed by Mexico. Since 
that date, Mexico has also used the preferential rules provided for in the following trade 
agreements:  T-MEC; the Comprehensive and Progressive Agreement for Trans -Pacific Partnership 
(CPTPP); and the Trade Continuity Agreement be tween Mexico and the United Kingdom.26 
3.19.  The criteria conferring origin may be general or specific. The use of non -originating 
materials that do not comply with the change of classification is permitted provided that they do 
not exceed a given percentage of the total cost or weight of the good or, in the case of textiles, 
the total weight. The agreements entered into by Mexico authorize cumulation, including extended 
cumulation, which allows the use of inputs originating in non -party States with which the Par ties in 
turn have a trade agreement (Table 3.2).  
Table 3.2 Rules of origin under the regional trade agreements that have entered into 
force since 2017  
 
24 Resolution amending Annexes 2,  3 and 4 of the miscellaneous provision establishing the mechanism 
to guarantee the payment of taxes on goods subject to prices estimated by th e SHCP (Official Journal 
of 24 December 2020). Viewed at: https://www.dof.gob.mx/2020/SHCP/SHCP_1_03_241220.pdf . 
25 Decision amending the miscellaneous provision establishing the rules fo r the determination of the 
country of origin of imported goods and provisions for their certification, with respect to anti -dumping and 
countervailing  duties  (Official  Journal  of 16 October  2008).  Viewed  at: http://dof.gob.mx/nota_detalle.php?codi
go=5064504&fecha=16/10/2008 ; Decree granting administrative facilities for customs and foreign trade 
purposes  (Official  Journal  of 31 March  2008).  Viewed  at: https://www.dof.gob.mx/nota_detalle.php?codigo=50
32270&fecha=31/03/2008 ; and Decree amending the miscellaneous provision granting administrative facilities 
for customs  and foreign  trade  purposes  (Official  Journal  of 1 November  2012).  Viewed  at: http://dof.gob.mx/n
ota_detalle.php?codigo=5276246& fecha=01/11/2012 . 
26 Database  –
 Regional  Trade  Agreements.  Viewed  at: http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx ; and WTO 
documents G/RO/N/183 and G/RO/N/210 of 15  April 2019 and 4 F ebruary 2021 respectively.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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T-MEC CPTPP  United  Kingdom  
Criteria of origin  (a) Goods wholly obtained or produced entirely in the territory of the Parties.  
(b) Goods produced entirely in the territory of the Parties exclusively from originating 
materials.  
(c) Goods produced entirely in the territory of the Parties with non -originating materials that 
comply with the criteria established in the specific rules of origin, i.e. change of tariff 
classification or minimum percentage of value of regional content.  
Tolerance rule  10% of the transaction value  
Tolerance rule 
for textiles  10% of total 
weight, 7% 
elastomers.  10% of total weight, 
elastomeric yarn has to be 
wholly formed in the territory 
of the Parties.  8% or less of total weight, applies 
only to mixed products which have 
been made from two or more basic 
textile mater ials.a 
Cumulation of 
origin  Extended cumulation of origin.b 
a Note 5 of the Introductory Notes to the List in Appendices  II and II(a) of the Economic Partnership, 
Political Coordination and Cooperation Agreement between the European Community and the 
United  Mexican States upon which the Trade Continuity Agreement between the 
United  Mexican  States and the United Kingdom of Great Britain and Northern Ireland is based. 
Information viewed at: 
http://www.dof.gob.mx/nota_detalle.php?codigo=5619907&fecha=01/06/2021 . 
b In respect of the Agreement with the United Kingdom, the cumulation criteria will cease to apply 
three years following the entry into force of the Agre ement unless the Parties agree to extend that 
period (Annex - Modifications to the Incorporated Agreement - Modifications to Annex III to 
Decision  2/2000, Article  3a, paragraph 7). Information viewed at: 
http://www.dof.gob.mx/nota_detalle.php?codigo=5619907&fecha=01/06/2021 ). 
Source:  WTO Secretariat.  
3.20.  In addition to product -specific rules, the T -MEC incorporates a Labour Value Content (LVC) 
for goods in the automot ive sector under which passenger vehicles and trucks are regarded as 
originating only where a specific percentage of their value is produced by employees whose hourly 
base wage is at least USD  16.27 The LVC  for light vehicles was set at 30 % for the period 2020 -22 
and will rise to 40 % from 2023; for trucks the percentage is 45 %.28 
3.1.4   Tariffs  
3.1.4.1   Structure and levels  
3.21.  The most important change to Mexico's tariff schedule during the review period was the 
reduction in t he number of tariff lines. According to the authorities, the change was needed in 
order to update obsolete tariff headings with low or zero trade flows and to implement the 
sixth amendment to the Harmonized System.29 In 2016, Mexico's tariff schedule 
conta ined 12,275  lines at the 8 -digit level of the HS 2012, whereas in 2021 it contained 7,802 
lines at the 8 -digit level of the HS  2017.30 
3.22.  In general, Mexico applies ad valorem  tariffs, with the exception of 45 tariff lines (0.6 % of 
the total). Of these lines,  36 have compound tariffs, and 9 have specific tariffs; both types of tariff 
continue to apply to the same category  of products as in 2016.31 
 
27 The LVC does not take into account the salaries of workers who are not involved directly in 
production, such as those working in the fields of management, R&D or engineering.  
28 T-MEC - Annex  4-B, Appendix, Provisions Related to the Product -Specific Rules of Origin for 
Automotive Goods, Article  7. Viewed at: http://dof.gob.mx/2020/SRE/T_MEC_290620.pdf . 
29 Decree containing  the Law on General Import and Export Taxes and amending and  supplementing 
various provisions of the Customs  Law (Official Journal of 1  July 2020). Viewed at: 
https://www .snice.gob.mx/cs/avi/snice/nuevaligie.instrumentacion.html . 
30 The tariff line totals include 41 headings that have no tariff rate because the import of the products in 
question is prohibited.  
31 Compound tariffs are applied to products such as: milk and mil k components, cream and whey, 
containing added sugar (HS 0402 and 0404); dairy spreads (HS 0405); frozen fruit and nuts and other fruit 
and nuts containing added sugar (HS 0811); molasses (HS 1703); sugar confectionery (HS 1704); chocolate 
and other food p reparations containing cocoa (HS 1806); food preparations of flour, groats and cereal 
products, baker's products (HS 1901; 1904 and 1905); other food preparations (HS 2106); jams and jellies 
(HS 2006 and 2007); ice cream (HS 2105); mineral water (HS 2202);  ethyl alcohol (HS 2207); and citric acid WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.23.  Mexico continues to apply seasonal tariffs to sorghum (HS 1007.90.01 -1007.90.02), soya  
beans (HS  1201.90.01 - 1201.90.02) and safflower seeds (HS 1207.60.02 -1207.60.03). As a 
result, as in 2016, imports of these three products are duty -free during a specific period of the 
year, but outside this period sorghum and soya beans are subject to a 15 % tariff and safflower 
seeds to a  10% tariff.  
3.24.  The average applied MFN tariff rose during the review period , from 5.5 % in 2016 to 6.7 % 
in 2021 (Table 3.3). The rise can be attributed to the fall in the number of zero -rated tariff lines, 
the rise in the number of lines subject to ra tes of between 0 % and 15 % (Chart  3.1), and the 
general reduction in the number of tariff lines. Despite the rise in the average tariff, the protection 
afforded to agricultural products (WTO definition) fell from 14.3 % in 2016 to 13.2 % in 2021. As in 
2016, non-agricultural products are subject to a lower average tariff than agricultural products. 
This tariff nonetheless rose during the review period from 4.6 % to 5.9 %. 
Table 3.3 Structure of MFN tariffs, 2016 and 2021  
(%) 
 2016  
(HS 12)  2021  
(HS 17)  
Total number of tariff lines  12,275  7,802a 
Ad valorem rates (> 0%)  5,060  4,015  
Rate of 0%  7,137  3,701  
Non-ad valorem  rates 59 45 
Non-ad valorem  tariffs (% of tariff lines)  0.5 0.6 
Non-ad valorem tariffs without ad valorem  equivalents (% of tariff lines)  0.4 1.5 
Simple average (%)  5.5 6.7 
Agricultural products (WTO definition)  14.3 13.2 
Non-agricultural products (including petroleum, WTO definition)  4.6 5.9 
Tariff quotas (% of tariff lines)  1.0 1.5 
Lines with zero tariffs (% of tariff lines)  58.1 47.4 
Average of lines above zero (%)  13.3 12.9 
Domestic tariff peaks (% of tariff lines)b 9.8 2.1 
International tariff peaks (% of tariff lines)c 9.8 9.7 
Overall standard deviation of applied rates  8.8 8.4 
Bound tariff lines (% of tariff lines)  100.0  100.0  
a Includes 41 lines that have no tariff rate because the import of the products in question is 
prohibited.  
b Domestic tariff peaks are defined as rates that are more than three times the overall simple average 
rate. 
c International tariff peaks are defined as rates above 15 %. 
Note:  The average takes into account the ad valorem  equivalents (AVEs) for lines subject to 
non-ad valorem  tariffs. The AVEs were estimated on the basis of the unit values of total imports 
in 2020 for 2021, as provided by the Mexican authorities. As in 2016, the analysis for 2021 excluded 
compound duties from the calculation (44 lines in 2016 and 36 lines in 2021).  
Source:  WTO Secretariat calc ulations, based on data provided by the authorities.  
3.25.  On average, the highest duties by WTO category continue to be applied to agricultural 
products, specifically sugar and confectionery, and to dairy products, with tariffs of 30 % (40.9 % 
in 2016) and 22.1% (40.9 % in 2016), respectively (Table A3.1). The average applied tariff on 
animals and animal products fell from 24.8 % in 2016 to 15.5 % in 2021. Average tariffs applied to 
non-agricultural products have not changed significantly since 2016, despite in creases for almost 
all products except fish and fish products (13.8 % in 2021 and 15.5 % in 2016); however, the 
products with the highest average tariff are fish and fish products and clothing (21.4 % in 2021 and 
21% in 2016).  
3.26.  Excluding compound tariffs, the tariffs applied in 2021 ranged between 0 % and 75 % (100% 
in 2016). The most frequent tariff rate is the zero rate, which applies to 47.4 % of tariff lines 
(58.1 % in 2016) (Chart 3.1). In January  2021, tariff lines with an ad valorem  tariff higher than 
zero w ere subject to 15 different rates (18 in 2016), ranging from 3 % to 75% (in 2016 the highest 
 
esters (HS 2918). Specific tariffs apply to products such as sugar (HS  1701); cocoa powder (HS  1806); 
flavoured syrups (HS  2106); and used pneumatic tyres (HS  4012).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  tariff was  100%).32 Other than 0 %, the most common rates in 2021 were 15 % (1,255 lines or 
16.1% of the total), 10 % (969 lines, 12.4 %) and 5 % (849 lines, 10.8 %).33 In 2021, 96.7 % of 
tariff lines were subject to a tariff of 20 % or less (98 % in 2016). Tariffs above 25 % (namely 30 %, 
36%, 45%, 50%, 67% and 75 %) were applied in particular to agricultural products as well as 
footwear (30 %) and motor vehicles and tractors (50 %). 
Chart 3.1 Frequency distribution of tariffs, 2016 and 2021  
(% of all tariff linesa) 
 
a The total number of lines is 12,275 in the 2016 tariff schedule and 7,802 in the 2021 tarif f schedule.  
Note:  Line totals do not add up to 100 %, as compound tariff lines (44 additional lines in 2016 and 36 
in 2021) were excluded from the calculations and 0.5 % concern prohibited lines that therefore 
carried no tariff in 2021 (0.2 % in 2016).  
Source:  WTO Secretariat calculations, based on data provided by the authorities . 
3.27.  Mexico bound all its tariff lines in the Uruguay Round.34 Both the bound and the applied 
tariff contain non -ad valorem  duties. All bound non -ad valorem  tariffs are mixed. Nonetheless, a 
tariff line may have an applied ad valorem , specific or compound  tariff without necessarily being 
bound at that same tariff rate. According to the authorities how ever, each and every one of the 
tariffs complies with the bound limit. Non -ad valorem  bound tariffs are applied to 91  lines.35 The 
compound tariffs have a specific component and an ad valorem  component that acts as a 
minimum tariff; the ad valorem  componen t ranges from 47 % to 254 %. Accordingly, tariff bindings 
range from 0 % to 254% if only the ad valorem  share of the tariffs is included. Leaving compound 
tariffs aside, for ad valorem  tariff rates only, the bindings range from 0 % to 72%. The highest rate 
is 72% and is applied to coffee (HS  0901), followed by 67.5 % for tobacco and cigars (HS  2402 and 
2403) and  50% for 185  tariff lines and parts of tariff lines in the HS 2012 nomenclature. When 
ad valorem  and non -ad valorem  rates are taken into account, about 7 6% of the total were bound 
at 35%, 10% at levels below 35 %, and the remainder at levels above 35 %. 
 
32 The rates were: 3 %; 5%; 6%; 7%; 9%; 10%; 15%; 20%; 25%; 30%; 36%; 45%; 
50%; 67% and 75%. 
33 Apart from 0 %, the most common rates in 2016 were also 15 % (1,337 lines), 10 % (1,274  lines) 
and 5% (1,013 lines).  
34 Mexico's bound tariff is in the HS 2012 nomenclature.  
35 Products such as meat and offal; milk a nd dairy products; potatoes and dried leguminous vegetables; 
cereals; animal or vegetable fats and oils; sugars and confectionery; cocoa and cocoa preparations; and other 
food preparations.  
58.1%
8.5%12.1%10.9%
8.2%
0.7% 0.9%47.4%
11.1%14.7%16.1%
7.6%
1.1% 1.0%
010203040506070
0% >0%-5% >5%-10% >10%-15% >15%-20% >20%-25% >25%Tariff 2016 (HS 2012)
Tariff 2021 (HS 2017)WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.28.  The MFN applied tariff would appear to exceed the bound tariff only for one subheading of 
HS tariff line 7009.91.99 (other glass mirrors) as one part of the subheading is bound at 10 % and 
the other at 35 %, whereas the MFN tariff is 15 % (Table  3.4).36 
Table 3.4 Tariff lines for which the applied MFN tariff is higher than the bound 
tariff,  2021  
HS Code  Description  MFN tariff  
(%) Bound tariff  
(%) 
7009.91.99  Other glass mirrors  15  
Subheadings:  
7009.91.99  For use in aircraft   10 
7009.91.99  Other   35 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.4.2   Tariff quotas  
3.29.  Mexico continues to use three kinds of tariff quotas: those negotiated under the WTO, 
preferential quotas negotiated under trade agreements and unilateral quotas.  
3.30.  Within the WTO framework, Mexico applies tariff quotas to products such as meat and edible 
offal, powdered milk, cheese, coffee, potatoes, beans, wheat, barley, maize, animal fats, sugar 
and products with a high sugar content. In 2021 as in 2015, most of these quotas were not used 
either because the applied MFN tariff was lower than the tariff for  in-quota imports, or because 
market access conditions offered under a unilateral quota were more favourable, or else because 
Mexico's imports on preferential terms exceeded the WTO quota amount. Moreover, the volume of 
imports of these products is general ly low (Table  A3.2).  
3.31.  Mexico has negotiated preferential quotas under its trade agreements with 
Argentina:  ACE No. 6 (56 tariff lines at the 8 -digit level of HS 2017) and ACE No.  55, Appendix 1 
(25 lines); Brazil: ACE  No. 53 (8 lines)37; Colombia (88 lines); Costa Rica (12 lines); Cuba: ACE 
No. 51 (102  lines); El  Salvador  (7 lines); the European Union (3  lines) ; Guatemala (12 lines); 
Honduras (6  lines); Israel (11 lines); Japan (29 lines); Nicaragua (5 lines); Peru (38 lines); and 
Uruguay  (21 lines). Mexico also negotiated preferential quotas under the CPTPP (Australia (28 
lines); Canada, New Zealand, Singapore and Viet  Nam (20  lines); and Japan (19  lines)).  
3.32.  Mexico continues to establish fixed -term unilateral import quotas in order to boos t the 
competitiveness of production chains, cope with price rises, satisfy domestic demand when there is 
a shortfall in the national supply or reduce the balance -of-payments deficit. To determine the 
volume or value of these quotas, the SE takes into accou nt the domestic availability and supply of 
the product in question as well as the opinion of industry stakeholders and the Foreign Trade 
Commission (COCEX). The SE publishes in the Official Journal the total volume or value of the 
quota, licence applicatio n requirements, the quota -allocation procedure and the period of validity 
for non -automatic licences.  
3.33.  In 2021, Mexico had unilateral quotas for 77 HS 8-digit tariff lines comprising 
both agricultural products and manufactures. Fourteen of those lines were also subject to tariff 
quotas within the framework of the WTO. For example, coffee, beef, pork and chicken, barley, 
beans and certain cheeses. For these products, the unilateral in -quota tariff was lower than for the 
WTO quota; the bulk of the quotas have a 0% tariff. However, in 2021, imports under unilateral 
and WTO quotas were low. The most used unilateral quota, accounting for 38.4 %, was for coffee 
extract, followed by the quota for fish fillets (31.4 %), chicken and turkey cuts (14.3 %) and dairy 
prepara tions (9.8 %) (Table  3.5 and Table  A3.3).  
 
36 This finding was made by comparing the applied MFN tariff (2021) and the bound tariff, taking into 
account only those lines that are strictly comparable because of the change in nomenclature or the use of a 
different type of tariff ( ad valorem , compound or mixed) depending on whether the tariff in question was 
applied or bound.  
37 The preferential quotas negotiated under ACE No. 55 with Brazil were eliminated in 2019 
(Fifth  Additional Protocol to Appendix II Concerning Trade in the Automotive Sector between Brazil and 
Mexico).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table 3.5 Tariff lines subject to unilateral and WTO quotas, 2021  
Heading (HS code)  In-quota tariff  Out-of-quota tariff (%)  
WTO (%)  Unilateral (%)  
Meat and edible offal of poultry  
0207.14.99  50 0 75 
0207.26.03  50 0 75 
0207.27.99  50 0 75 
0207.60.03  50 10 0 
Cheese, hard and semi -hard 
0406.90.99  50 20 45 
Beans, other than for sowing  
0713.33.99  50 0 45 
Coffee  
0901.21.01  50 0 45 
0901.22.01  50 0 45 
0901.90.99  50 0 45 
Coffee extract  
2101.11.02  50 20 45 
2101.11.99  50 20 45 
2101.12.01  50 20 45 
Barley  
1003.90.99  50 0 0 
Dairy preparations  
1901.90.05  50 0 45 
Source:  WTO document G/AG/N/MEX/54 of 2  June 2021, and information provided by the authorities.  
3.34.  In general, quotas are allocated by public tender. However, the SE may choose to use other 
procedures such as direct allocation, "first  come, first served" or a mixed method. Allocation 
procedures may also be laid down in trade agreements or i nternational conventions to which 
Mexico is party. In any event, the procedures may not constitute a barrier to trade (LCE Article  
24). Between  2017 and 2021, the most used methods were direct allocation and "first come, first 
served" (Chart  3.2).38 Once t he quotas have been allocated, importers must obtain a 
non-automatic import licence ("quota certificate") (LCE Article  15). A quota may be applied for by 
natural or legal persons established in Mexico who satisfy the requirements laid down by the SE for 
each quota. The application can be made through the VUCEM or in person at the federal branches 
and sub -branches of the SE. Currently, however, they are overwhelmingly made through the 
VUCEM.  
 
38 National Foreign Trade Enquiry Point (SNICE). Information viewed at: 
https://www.snice.gob.mx/cs/avi/snice/cuposinfogeneral.html . WT/TPR/S/429 /Rev.1  • Mexico  
 
- 63 - 
 
  Chart 3.2 Quota dis tribution by method of allocation, 2017 -21 Q3  
(%) 
 
Source:  National Foreign Trade Enquiry Point (SNICE) . 
3.35.  Additionally, the SE may provide for "tariff -exempt" quotas where they are deemed 
necessary. In 2020, provisions were laid down waiving the tariffs on imports of milk in powder or 
tablet form (HS  0402.10.01 and HS  0402.21.01) within the WTO quota, and on imports of goods 
subject to unilateral quotas (fish, tomatoes, onions, fruit, maize, rice, vegetable fats and oils, soya  
cake, cane molasses,  some spirits and toys).39 In 2021, a tariff -free quota of 7,000 tonnes was 
placed on beef (fresh, chilled or frozen) to ensure supply and price stability in the domestic 
market; however, it would appear that this quota was not used.40 
3.1.4.3   Preferential tariffs  
3.36.  In 2021, Mexico had 28  trade agreements that granted originating imports preferential 
treatment.  
3.37.  The average preferential tariff in these free trade agreements (FTAs) is in all cases lower 
than the MFN tariff average.41 Average prefere ntial tariffs range between 0 % and 3.2 %, as is the 
case for non -agricultural products. The preferences granted for agricultural products are lower 
than those granted to non -agricultural products, and in some cases are very close to the MFN tariff 
(for exam ple, with Norway). The preferential rates for agricultural products range between 0 % and 
13%. The duty -free status granted under all the agreements, except that with Panama and under 
the CPTPP, covers over  90% of the total tariff schedule, and in some case s (Chile, Nicaragua, 
United  States) even reaches 99 % or 100 % (Table 3.6).  
3.38.  The preferences granted under partial agreements cover less than 50 % of the total tariff 
schedule, with the exception of the agreement with the Plurinational State of Bolivia. The 
difference between the preference margin granted in these agreements and the average MFN tariff 
is not large.  
 
39 Information viewed at: 
http://www.diputados.gob.mx/LeyesBiblio/ref/ligiex/LIGIEx_tarifa01_24dic20.pdf . 
40 The quota applies to the following types of meat: carcasses and half -carcasses (HS 0201.10.01); 
other cu ts with bone in (HS  0201.20.99); boneless (HS  0201.30.01); carcasses and half -carcasses 
(HS 0202.10.01), other cuts with bone in (HS  0202.20.99); boneless (HS  0202.30.01) (Decision announcing 
the tariff for importing beef under the indicated tariff quota ( Official Journal of 28  June 2021)).  
41 In the calculation of this average, the lower of the MFN tariff and the preferential tariff was used for 
each product, in order to reflect market access conditions more accurately.  
514944
37 366
51321
1440
3836 34
4238 8 8 8
0102030405060708090100
2017 2018 2019 2020 2021T3
Direct allocation Public tender First come, first served Mixed(%)WT/TPR/S/429 /Rev.1  • Mexico  
 
- 64 - 
 
  Table 3.6 Summary of preferential tariffs, 2021  
 
Number of 
preferential 
lines  
Preferential 
part of tariff 
(%) Total  WTO categories  
Agricultural products  Non-agricultural 
products (including 
petroleum)  
Average 
(%) Duty -free 
lines  Average 
(%) Duty -free 
lines  Average 
(%) Duty -free 
lines  
(%) (%) (%) 
MFN - - 6.7 47.4 13.2 21.8 5.9 50.8 
FTA 
Andorra  3,124  40.0 2.0 87.5 13.1 22.9 0.6 95.9 
Canada  3,994  51.2 0.2 98.6 1.8 91.9 0.0 99.5 
Chile 4,019  51.5 0.1 98.8 1.1 94.6 0.0 99.3 
Colombia  3,889  49.8 0.8 95.3 4.8 70.9 0.3 98.4 
Costa Rica  3,955  50.7 0.3 98.1 3.0 88.2 0.0 99.4 
El Salvador  3,898  50.0 0.5 97.2 3.1 86.2 0.2 98.7 
United States  4,015  51.5 0.0 99.5 0.0 99.2 0.0 99.5 
Guatemala  3,883  49.8 0.6 97.0 3.5 85.0 0.2 98.5 
Honduras  3,896  49.9 0.5 96.9 3.0 86.5 0.2 98.2 
Iceland  3,398  43.6 1.4 91.0 12.6 26.5 0.0 99.4 
Israel  3,162  40.5 1.9 87.9 12.5 26.7 0.6 95.9 
Japan  3,571  45.8 1.0 93.2 7.5 55.5 0.2 98.2 
Nicaragua  4,038  51.8 0.1 99.2 0.7 96.8 0.0 99.5 
Norway  3,369  43.2 1.5 90.6 13.0 23.3 0.0 99.4 
Panama  3,702  47.4 1.9 75.3 4.3 66.5 1.6 76.5 
Peru 3,840  49.2 0.6 96.6 4.3 78.5 0.1 99.0 
Switzerland  3,435  44.0 1.3 91.4 11.9 30.4 0.0 99.4 
European Union  3,813  48.9 0.6 96.3 5.0 71.6 0.0 99.5 
Uruguay  3,778  48.4 1.0 93.6 3.5 79.6 0.7 95.5 
Chile (Pacific 
Alliance  4,022  51.6 0.2 98.2 1.7 89.2 0.0 99.3 
Colombia (Pacific 
Alliance)  4,005  51.3 0.2 97.8 1.4 88.6 0.0 99.0 
Peru (Pacific 
Alliance)  4,022  51.6 0.2 98.2 1.7 89.2 0.0 99.3 
Australia (CPTPP)  3,894  49.9 2.8 71.6 3.0 79.1 2.8 70.6 
Canada (CPTPP)  3,894  49.9 2.8 71.6 3.0 79.1 2.8 70.6 
Japan ( CPTPP)  3,894  49.9 2.8 71.4 3.0 79.1 2.8 70.4 
New Zealand 
(CPTPP)  3,894  49.9 2.8 71.6 3.0 79.1 2.8 70.6 
Singapore (CPTPP)  3,894  49.9 2.8 71.6 3.0 79.1 2.8 70.6 
Viet Nam (CPTPP)  3,303  42.3 3.2 71.6 3.3 79.1 3.2 70.6 
Partial scope agreements  
Argentina ACE No. 
6 696 8.9 5.6 56.9 12.6 25.1 4.7 61.1 
Brazil ACE No. 53  115 1.5 6.5 47.9 12.2 25.7 5.8 50.8 
Cuba ACE No. 51 
(domestic market)  28 0.4 6.7 47.4 13.2 21.8 5.9 50.8 
Cuba ACE No. 51 
(border region)  3 0.0 6.7 47.5 13.2 21.8 5.9 50.8 
Cuba ACE No. 51 
(national territory)  938 12.0 5.5 56.7 11.1 30.7 4.8 60.1 
Argentina ACE No. 
55 53 0.7 6.6 48.1 13.2 21.8 5.8 51.6 
Brazil ACE No. 55  93 1.2 6.6 48.6 13.2 21.8 5.7 52.2 
Uruguay ACE 
No. 55 91 1.2 6.6 48.6 13.2 21.8 5.7 52.1 
Plurinational State 
of Bolivia ACE No. 
66 3,902  50.0 0.3 97.6 2.8 83.4 0 99.5 
Ecuador APR 29  187 2.4 6.5 48.1 13.1 22.3 5.6 51.5 
Other agreements  
Argentina PAR 4  3,172  40.7 5.8 47.4 11.3 21.8 5.1 50.8 
Brazil PAR 4  3,172  40.7 5.8 47.4 11.3 21.8 5.1 50.8 
Cuba PAR 4  3,172  40.7 5.4 47.4 10.6 21.8 4.8 50.8 
Ecuador PAR 4  3,172  40.7 4.8 47.4 9.5 21.8 4.3 50.8 
Panama PAR 4  3,172  40.7 5.4 47.4 10.6 21.8 4.8 50.8 
Paraguay PAR 4  3,172  40.7 4.5 47.4 8.7 21.8 3.9 50.8 
Ecuador ARAM 2  186 2.4 6.3 49.8 12.8 23.9 5.5 53.2 
Paraguay ARAM 3  79 1.0 6.6 48.4 13.0 23.2 5.8 51.8 
Note:  The average takes into account the ad valorem  equivalents (AVEs) for lines subject to specific tariffs. 
The AVEs  were estimated on the basis of the unit values of total imports in 2020, provided by the 
Mexican authorities. Compound or mixed tariffs (36 lines) were excluded from the calculations.  
Source:  WTO Secretariat, based on data from the Mexican authorities.  WT/TPR/S/429 /Rev.1  • Mexico  
 
- 65 - 
 
  3.39.  Despite the large number of trade agreements signed by Mexico, the  low rates of 
preferential tariffs negotiated and the high degree of trade liberalization provided for in these 
agreements (extending, under  some, to 99 % or 100 % of the total tariff schedule), the percentage 
of imports enjoying preferential treatment held steady at around 36 % in both 2020 and 2021 (Q2) 
(Table  3.7). The low take -up of preferential tariffs could be attributed  to the existence of other 
preferential r egimes such as the IMMEX programme and sectoral promotion (PROSEC)  
programmes , or to the fact that nearly  50% of tariff lines have a tariff of 0% . 
Table 3.7 Imports receiving preferential treatment and MFN im ports  
(%) 
Imports  2020  2021 (Q2)  
Preferential 
treatment  MFN Preferential 
treatment  MFN 
Total imports  35.6 64.4 36.5 63.5 
Origin      
Trading partner with 
agreements  50.1 49.9 50.7 49.3 
Trading partner without 
agreements  7.3 92.7 7.2 92.8 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.4.4   Tariff concessions  
3.40.  Mexico continues to grant tariff concessions in respect of certain goods imported for specific 
uses, for example goods imported by public agencies for national defence, public security or 
education purposes, or goods imported by international organizations (Article 61 of the Customs  
Law). Also exempt are imports of goods for "special operations" (HS Chapter  98), and certain 
goods imported into  the border  region and the northern border zone.42 
3.41.  The general import tax for the border region and the northern border zone, notified by 
Mexico in 2019 in compliance with the provisions of the Agreement on Subsidies and 
Countervailing Measures43, was established in order to encourage the development of commercial 
and service activities, and to facilitate import monitoring and operations in those regions. 
Accordingly, operators who engage in commercial activities or provide certain services44 and who 
hold registration  as a border enterprise may import goods at a preferential tariff rate. The schedule 
of products and the tariff -reduction schedule were the subject of various amendments during the 
review period (Box  3.1). As notified to the WTO, it is not possible to dete rmine the effect of this 
measure on trade.45 According to calculations by the Secretariat based on data supplied by the 
authorities, the goods imported under this procedure represented 0.4 % of all imports in 2020, and 
0.3% of all imports in 2021 (Q2), whil e exports are near -zero. 
3.42.  In 2021, in order to address the health emergency, tariffs applicable to vaccines against 
the SARS -CoV-2 virus (HS  3002.20.10) and aluminium containers for oxygen for medicinal use 
(HS 7613.00.02) were cut to zero from 5 % and 10 % respectively.46 
3.43.  Additionally, in order to promote vehicles that use new, clean technologies, Mexico 
temporarily eliminated tariffs in respect of a number of electric cars and motor vehicles during the 
period 2020 -24 (30  September).47 The tariff concessions are used to allow free competition and 
access to clean new technologies in order subsequently to develop a domestic industry.48 
 
42 Article  136 of the Customs Law prov ides as follows: "For the purposes of this Law, 'border zone' 
means the territory included between the international frontier and the parallel line located 20 kilometres from 
the border. 'Border region' means the territory defined by the Federal Executive" . 
43 WTO document G/SCM/N/315/MEX of 24  September  2019.  
44 These include restaurant, hotel, leisure, cultural, recreational, sporting, educational, research -related, 
medical and social care services; rental services for moveable property; and services to bus inesses.  
45 WTO document G/SCM/N/315/MEX of 24  September  2019.  
46 Decree amending the tariff schedule in the Law on General Import and Export Taxes (Official Journal 
of 22 February 2021). Viewed at: 
http://www.dof.gob.mx/nota_detalle.php?codigo=5611928&fecha=22/02/2021 . 
47 Decree amending the tariff schedule in the Law on General Import and Export Taxes, the Decree 
supporting the competitiveness of the automotive ind ustry and fostering the development of the domestic car WT/TPR/S/429 /Rev.1  • Mexico  
 
- 66 - 
 
  3.44.  Mexico continues to grant tariff concessions under various programmes, such as PROSEC 
and IMMEX.  
Box 3.1 Amendments to the general import/export procedure for the border region and 
the northern border zone  
In 2016 it was established that the original schedule of products subject to preferential treatment, namely 
the schedule included in the Decree establishing the general import tax for the border region and the 
northern border zone, of 24  December  2008, would b e fully rebated until 31  December  2019.  
In 2019, it was decided to extend the tariff -reduction timetable for some of the products concerned 
until 30 September  2024 and to tax other products at 5% until 31  December  2019.  
In 2020 the tariff -reduction timet able was amended again in respect of some tariff headings. For tariff 
headings HS  7308.30.02 and 7308.90.99, the tariff would be 10% from 22  September  2021 and 7% 
from 22 September  2023, and for other tariff headings (HS  7304.19.01, 7304.19.02, 7304.19.03,  
7304.29.99, 7304.39.10, 7304.39.11, 7304.39.12, 7304.39.13, 7304.39.14, 7304.39.15, 7305.20.01, 
7306.19.99, 7306.29.99, 7306.30.99 and 7308.20.02), the tariff would be 10% from 22  September  2021 
and 5% from 22  September  2023. The headings would be duty -free from 1  October  2024.  
In 2021 the tariff -reduction programme was again amended in order to create conditions conducive to 
enabling the steel industry to adapt to the international economic environment and incentivizing the 
domestic market. Consequently the tariff for certain related tariff headings would be 10% from 30  June 
2022, 5% from 22  September  2023 and tariff -free from 1  October  2024.  
In 2021, certain products in HS Chapters 61, 62, 63, 64 and 87, such as clothing and textiles, footw ear 
and vehicles were removed from the schedule of products eligible for preferential treatment when imported 
by border businesses.  
Source:  WTO Secretariat, based on the Decree amending and extending the duration of the miscellaneous 
provision establishin g the general import tax for the border region and the northern border zone 
(Official  Journal  of 17 November  2016).  Viewed  at: https://www.dof.gob.mx/nota_detalle.php?c odig
o=5461351&fecha=17/11/2016 ; and the Decree amending the tariff schedule in the Law on General 
Import and Export Taxes (Official Journal of 22  November  2021). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5635991&fecha=22/11/202 1. 
3.45.  The tariff concessions granted by Mexico and preferential trade have led to the share of 
tariffs as a percentage of total tax revenues remaining steady at around 2 % during the per iod 
under review (Table  3.8). The SHCP is of the view that the low level of revenue is due among 
other reasons to tax incentives provided under tariff preferences.49 
Table 3.8 Tax revenue related to taxes on foreign trade  
(MXN  billion)   
2016  2017  2018  2019a 2020a 2021Q2a 
Total tax revenue  2,716  2,850  3,062  3,203  3,339  1,856  
Taxes on foreign trade  51 52 66 65 58 33 
Imports  51 52 66 65 58 33 
Exports  0 0 0 0 0 0 
As a % of tax revenue  1.9 1.8 2.1 2.0 1.7 1.8 
As a % of GDP  0.3 0.2 0.3 0.3 0.3 0.1 
a Preliminary figures.  
Source:  Bank of Mexico, SIE database.  
3.1.5   Other charges affecting imports  
3.46.  In Mexico both imported and domestic products are subject to various internal taxes: value 
added tax (VAT), the special tax on production and services (IEPS), and the tax on new 
automobiles (ISAN).  
 
market, the Decree establishing the general import tax for the border region and the northern border zone, the 
Decree establishing various sectoral promotion programmes, and various provisions establi shing tariff quotas 
(Official Journal of 24 December 2020).  
48 Decree amending the tariff schedule in the Law on General Import and Export Taxes (Official Journal 
of 3 September 2020).  
49 National Development Financing Programme 2020 -24 (Official Journal of 5 August 2020). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5597864&fecha=05/08/2020 . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.47.  Definitive imports are subject to VAT, except for personal luggage and household effects, 
goods whose disposal in the country and services whose provision in n ational territory are exempt 
from payment of the tax or apply the 0 % VAT rate, goods donated by residents abroad, works of 
art recognized as such, gold (with a minimum content of said material of 80 %) and duty -free 
vehicles when they belong to personnel of  foreign governments with which Mexico has diplomatic 
relations.50 The VAT rate has not varied since the previous review (2017) and still stands at 16 %. 
The VAT tax base for imports has not changed either since 2017: it is the customs value plus the 
amount  of import tariffs and other duties payable.  
3.48.  The general VAT rate is not applied throughout the national territory however, as since 2018 
a reduced rate of 8 % has been applied in northern and southern border areas for products 
produced and sold in those ar eas (the rate for imported products is 16 %).51 This measure forms 
part of the fiscal stimuli granted to operators whose income obtained from transactions within this 
region amounts to at least 90 % of total income. This stimulus, initially valid until 2020, was 
extended until  2024, and its application was broadened to include the southern border area.52 
3.49.  Mexico continues to apply the IEPS to certain goods and services, such as alcoholic 
beverages, processed tobacco, calorie -dense foods, pesticides and fuels. Goods subject to the IEPS 
have not changed dur ing the review period. The IEPS can be ad valorem (alcoholic beverages, 
energy drinks, pesticides and calorie -dense foods), specific (vehicle fuels, flavoured drinks and 
fossil fuels) or compound (cigars); since 2016, some rates have been updated to reflec t changes in 
the Consumer Price Index (Table 3.9). Various fiscal incentives are granted to operators that 
import and dispose of fuels.53 The amount of the incentive is adjusted, as necessary, to mitigate 
variations in international prices, and may vary by  region and sector.54 The amounts of the tax 
incentive applicable to the disposal and import of gasoline, as well as to disposal in the border 
region with the United States and on the southern border with Guatemala, are set out in decisions 
published in th e Official Journal, which are valid for a period of seven days.55 Similarly, the 
percentage of incentive for the use of fuels in the fisheries and agricultural sectors is published in 
monthly decisions.56 
3.50.  New cars priced at above MXN  313,163.32 (in 2017 th e reference price was MXN  
222,032.19) are subject to the payment of the ISAN, a tax made up of an ad valorem  component 
and a specific component that varies according to a range of prices. The ad valorem  component is 
calculated on the basis of the differenc e between the lower limit of the range and the price of the 
vehicle (Table  3.9). For vehicles bought in the country, the tax is calculated on the basis of the 
sales price of the vehicle to the end user. In the case of imports, the tax is calculated on the basis 
of the customs value plus import duty and other import -related duties payable, excluding VAT.57 
Electric motor vehicles are exempt from the ISAN.  
 
50 Tax Administration Service (SAT). Viewed at: 
http://omawww.sat.gob.mx/EstimulosFiscalesNorteSur/Paginas/index.html . 
51 Decree on fiscal stimuli in the northern border region (Official Journal of 31 December 2018). 
Viewed at: http://dof.gob.mx/nota_detalle.php?codigo=5547485&fecha=31/12/2018 . 
52 Decree amending the miscellaneous provision on fiscal stimuli in the northern border region 
(Official Journal of 30 December 2020) and Decree on fiscal stimuli in the southern border region 
(Official  Journal of 30  December 2020). Viewed at: 
https://www.dof.gob.mx/ nota_detalle.php?codigo=5609182&fecha=30/12/2020 . 
53 Decree amending the miscellaneous provision establishing fiscal stimuli related to the special tax on 
production and services applicable to the fuels indicated (Official Journal of 27 December 2016, most recent 
amendment published on 30 December 2020).  
54 Decision No. 118/2021 (Decision announcing the percentages and amounts of the fiscal stimulus, as 
well as the reduced special tax on production and services applicable to the fuels indicated, for the perio d 
specified) (Official Journal of 27 August 2021).  
55 Decision No. 119/2021 (Decision announcing the amounts of the fiscal stimuli applicable to the sale of 
gasoline in the border region with the United States of America for the period specified) (Official Journal 
of 27 August 2021).  
56 Decision establishing fiscal stimuli for gasoline and diesel in the fisheries and agriculture 
sectors  (Official  Journal  of 30 December  2015).  Viewed  at: https://www.dof.gob.mx/nota_detalle.php?codigo=
5421732&fecha=30/12/2015 ;and Decision establishing fiscal stimuli for gasoline and diesel in the fisheries 
and agriculture  sectors  (NORLEX  data sheet).  Viewed  at: https://www.norlexinternacional.com/arch/30121504.
htm. 
57 The Federal Law on New Automobiles (most recent amendment published on 12 November 2021). 
Amounts updated by Omnibus Tax Resolution  (Official Journal of 28 December 2021). Viewed at: 
https://www.diputados.gob.mx/LeyesBiblio/pdf/LFISAN.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table 3.9 Other import charges, 2022  
 Taxable goods  Rate in 2022  Changes since 2017  
VAT All goods, except those specified 
in Article 25 of the Law on VAT 
(for example, personal luggage 
or household effects)  16% (general rate)  No change  
IEPS  Alcoholic beverages and beer  26.5%, 30% or 53%, 
according to alcohol content  No change  
Alcohol, denatured alcohol and 
non-crystallized honey;  50% No change  
Cigars/cigarettes  160% + MXN 0.5484/  
75 grams of tobacco  Specific component updated  
Cigars and other processed 
tobacco  160%; 30.4% (handmade)  No change  
Vehicle fuels   Previously, gasoline below, 
higher than or equal 
to 92 octane was subject to 
the IEPS.  
The rate of the specific 
component is updated annually 
by a SHCP Decision.  Gasoline, below 91 octane  MXN 5.4917/litre  
Gasoline, 91 octane or higher  MXN 4.6375/litre  
Diesel  MXN 6.0354/litre  
Non-fossil motor vehicle fuels  MXN 4.6375/litre  
Fossil fuels (carbon emissions)   Specific rate updated  
Propane  MXN 8.2987 cents/litre  
Butane  MXN 10.7394 cents/litre  
Gasoline and aviation fuel  MXN 14.5560 cents/litre  
Jet fuel and other kerosenes  MXN 17.3851 cents/litre  
Diesel  MXN 17.6624 cents/litre  
Fuel oil  MXN 18.8496 cents/litre  
Petroleum coke  MXN 21.8784 pesos/tonne  
Coking coal  MXN 51.2901 pesos/tonne  
Coal MXN 38.6201 pesos/tonne  
Other fossil fuels  MXN 55.8277 pesos/tonne of 
carbon in fuel  
Energy drinks and syrups and 
concentrates for the preparation 
thereof  25%; 25% + MXN 1.3996/litre 
when containing added sugar  Rate of specific component 
updated  
Flavoured drinks and syrups and 
concentrates for the preparation 
thereof, containing added sugar  MXN 1.3996/litre  Specific rate updated  
Pesticides  6%, 7% or 9%, according 
to toxicity  No change  
High-calorie non -staple foods 
(≥ 275 kcal/100 grams)  8% No change  
ISAN  Price range (MXN)a Specific rate 
(MXN)a Ad valorem 
rate 
(%)a In 2022, if the price of the 
motor vehicle exceeds 
MXN 864,750.45, 7% of the 
difference between the unit 
price and MXN 864,750.45 will 
be deducted from the amount of 
tax determined.   0.01-313,163.32  0.00 2 
 313,163.33 -375,795.92  6,263.16  5 
 375,795.933 -438,428.76  9,394.94  10 
 438,428.77 -563,693.73  15,658.19  15 
 > 563,693.74  34,447.90  17 
 Lorries with carrying capacity 
of 4,250 kg  n.a. 5 No change  
n.a. Not applicable.  
a Updated annually through Annex 15 of the Omnibus Tax Resolution for the year in question.  
Source:  Law on VAT; Law on the IEPS; Federal Law on New Automobiles; and Decision updating the rates of 
special taxes on production and services in 2022 (Official Journal of 23  December  2021). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5639152&fecha=23/12/2021 . 
3.1.6   Import prohibitions, restrictions and licensing  
3.51.  The Foreign Trade Law (LCE) and its implementing regulations continue to govern the 
imposition of non -tariff regulations and restrictions (RRNAs). The Federal Executive may regulate, 
restrict or prohibit the import (export), movement or transit of goods, in circumstances deemed to WT/TPR/S/429 /Rev.1  • Mexico  
 
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  constitute  an emergency, by means of decrees published in the Official Journal.58 The reasons for 
imposing this type of measure have not changed since 2017. According to the Law, RRNAs may be 
imposed for the purpose of balancing payments; regulating the entry of use d products (waste or 
products that lack a significant market in their country of origin or provenance); controlling 
situations related to national security, public health or plant, animal or environmental health; or as 
provided in international treaties or  conventions. RRNAs may consist of: prior permits, maximum 
quotas, Mexican Official Standards (NOMs), compensatory quotas, certification s, marking of the 
country of origin or other instruments considered appropriate for the purpose of achieving national 
trade policy objectives (Article 16 of the LCE).  
3.52.  Before being imposed, these measures are evaluated by the Foreign Trade Commission 
(COCEX), except in cases of emergency.59 COCEX must base its evaluation on an economic 
analysis, prepared by the relevant depa rtment, of the costs and benefits of applying the measure. 
This analysis may take into account, among other elements, the impact of the measure on prices, 
employment, competitiveness, tax revenue, consumers, the variety and quality of the available 
supply and the level of competition in the markets. If COCEX does not accept the proposed 
measure, the relevant bodies must revise it.  
3.53.  Mexico continues to prohibit  the import of certain products (41 tariff lines at the HS 2017 
8-digit level), in particular chemic als and drugs (Table 3.10).60 Since the last review, some 
products from the chemical industries (18 lines from HS Chapters 29 and 38) and vaping devices 
have been added to the list, including electronic cigarettes and tobacco -heating devices (two lines 
from HS Chapter 85). The import of products classified under these lines has been prohibited to 
protect human life and health.61 
Table 3.10 Prohibited imports (exports) (HS Chapter), 2021  
HS Chapter  Reason  Number of lines  
3 Fish and crustaceans, molluscs and other aquatic 
invertebrates  Animal conservation  1 
12 Oil seeds and oleaginous fruits; miscellaneous grains, 
seeds and fruit; industrial or medicinal plants; straw 
and fodder  Illicit substance  3 
13 Lac; gums, resins and other vegetable saps and extracts  Illicit substance  3 
28 Inorganic chemicals  Toxic substance  1 
29 Organic chemicals  Rotterdam/Stockholm 
Convention and illicit 
substance  18 
30 Pharmaceutical products  Illicit substances  4 
38 Miscellaneous chemical products  Rotterdam/Stockholm 
Convention and health  6 
41 Raw hides and skins (other than furskins) and leather  Animal conservation  1 
49 Printed books, newspapers, pictures and other products 
of the printing industry; manuscripts  Promotion of violence  2 
85 Electrical machinery and equipment; image and sound 
recorders and reproducers  Health  2 
Source:  WTO Secretariat, based on data provided by the authorities.  
3.54.  The licensing system in Mexico is governed by the LCE, its implementing regulations and the 
Ministry of Economic Affairs Decision issuing General Rules and Criteria for Foreign Trade (most 
recent amendment published in the Official Journal of 31  December  2019).62 The Ministry of 
Economic Affairs (SE) is the body responsible for implementing the system. The goods subject to 
 
58 Article 4 of the LCE and Article 131 of the Political Constitution of the  United Mexican States.  
59 Articles 17 to 19 of the LCE and Article 9 of the regulations implementing the LCE of 1993 (most 
recent amendment published on 22  May 2014).  
60 WTO document G/MA/QR/N/MEX/1 of 27 July 2016.  
61 Imports of the following were prohibite d: solutions, mixtures, cartridges and/or dismountable tobacco 
units used for what is included in tariff item 8543.70.18 (HS 3824.99.83) and electronic nicotine delivery 
systems (ENDS), non -nicotine delivery systems (NNDS), alternative nicotine delivery sy stems (ANDS), 
electronic cigarettes and vaping devices with similar uses (HS 8543.70.18) (Decree amending the tariff 
schedule in the Law on General Import and Export Taxes (22 October 2021)). Viewed at: 
http://www.diputados.gob.mx/LeyesBiblio/ref/ligiex/LIGIEx_tarifa04_22oct21.pdf . 
62 WTO document G/LIC/N/3/MEX/7 of  2 June 2021.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  licensing are reviewed once a year, and removing any product from or adding any product to this 
list is subject to the favourable opinio n of COCEX.  
3.55.  Mexico currently uses both automatic licensing (automatic permits) and non -automatic 
licensing (prior permits). In principle, the use of one type of licence does not exclude the 
other,  i.e. both licences may be required to import the same good. The use of both licences is due 
to the fact they serve different purposes . Automatic licences (automatic permits) are used to keep 
a statistical record of imports63, while non -automatic licences are us ed to regulate the trade of 
specific products, in order to protect consumers, public health or the environment, regulate the 
import of inputs under preferential regimes or comply with international treaties or agreements.  
3.56.  The number of tariff lines subject  to automatic licences increased during the review period. 
Automatic licensing (automatic permits) affected 1,041 tariff lines in 2021, i.e. 13.3 % of all tariff 
lines, while in 2016 that percentage was 8.2 % of the total. Automatic licensing continues to be  
required for the same type of products as in 2016: textiles (764 tariff lines at the HS 2017 8-digit 
level), footwear (28 tariff lines at the HS 2017 8-digit level) and base metals (iron products) 
(172 tariff lines at the HS 2017 8-digit level).64 When re questing a licence, the import procedure 
and tariff line must be specified, as well as the value and quantity authorized to be imported (or 
exported) and the period of validity. Licences may be valid for a maximum period of four months 
depending on the pro duct concerned, and are non -transferable. Customs may authorize one or 
more automatic extensions of the validity of the original import licence.65 The SE approves all 
applications, provided that the applicants meet the legal requirements to carry out forei gn trade 
transactions in Mexico.66 
3.57.  In 2021, 25.2 % (1,964 tariff lines at the 8 -digit level of HS 2017) of the total tariff lines 
that made up Mexico's Tariff were subject to non -automatic import licensing requirements (prior 
permits). (Chart  3.3). Over the period 2016 -21, the use of non -automatic licensing appears to 
have decreased; however, given the change in nomenclature and the removal of tariff lines from 
the Tariff, this cannot be stated with certainty. Mexico continues to use both types of licensi ng for 
textiles, footwear and metals (Table 3.1 1). 
 
63 Article 21 of the regulations implementing the LCE.  
64 WTO documents G/LIC/N/3/MEX/6 a nd G/LIC/N/3/MEX/7 of 24 September 2019 and 2 June 2021, 
respectively; and information provided by the authorities.  
65 Article 24 of the regulations implementing the LCE (most recent amendment published 
on 22 May 2014).  
66 Article 21 of the regulations imple menting the LCE (most recent amendment published 
on 22 May 2014).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Chart 3.3 Automatic and non -automatic import licensing by HS section, 2021  
(Number of tariff lines)  
 
Note:  "Other" includes some merchandise for sectoral pr omotion (PROSEC)  programmes.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Table 3.11 Tariff lines subject to automatic and non -automatic import licensing, 2021  
HS 
section  Tariff line  Description  
11 5113.00.02  Woven fabrics of coarse animal hair or of horsehair  
11 5901.90.99  Other textile fabrics coated with gum or amylaceous substances  
11 6305.10.01  Sacks and bags, of jute or of other textile bast fibres of heading 53.03  
12 6403.19.02  Sports footwear for men  
12 6403.19.99  Other sports footwear  
12 6403.20.01  Footwear with outer soles of leather, and uppers which consist of leather straps  
12 6403.51.05  Other footwear with outer soles of leather, covering the ankle  
12 6403.59.99  Other footwear with outer soles of leather  
12 6403.91.12  Other welt footwear covering the ankle  
12 6403.91.99  Other footwear covering the ankle  
12 6403.99.01  Other welt footwear  
12 6403.99.12  Children's or babies' sandals  
12 6403.99.13  Other footwear for exercise and the like  
12 6403.99.14  Sandals, other than those under tariff subheading 6403.99.12  
12 6403.99.15  Other children's or babies' sandals  
12 6403.99.99  Other footwear  
12 6405.10.01  Other footwear, with uppers of leather or composition leather  
Other  9802.00.04  Goods for the toy industry PROSEC  
Other  9802.00.14  Goods for the PROSEC concerning the pharma -chemical, medicine and medical 
equipment industry  
Source:  WTO Secretariat, based on data provided by the authorities.  
3.58.  Non-automatic licensing applies to products originating in all countries, except where it is 
used to administer undertakings negotiated under trade agreements.67 The SE is responsible for 
issuing most non -automatic licence s, although some of these are regulated and issued by other 
 
67 WTO document G/LIC/N/3/MEX/7 of  2 June 2021.  
418
295
13116
24607
2442102
16 17
2 11280
1591
2458
4 3 2763
48
3172
25
127
0100200300400500600700800900
1 2 3 4 5 6 7 8 9 11 12 13 14 15 16 17 18 19 20 21OtherNon-automatic licences
Automatic licencesHS sections:
1 -Live animals
2 -Vegetable products
3 -Fats and oils
4 -Prepared foodstuffs
5 -Mineral products
6 -Chemicals
7 -Plastics
8 -Raw hides and skins, leather
9 -Wood
11 -Textiles
12 -Footwear
13 -Articles of stone
14 -Natural pearls, precious metals
15 -Base metals
16 -Machinery and mechanical appliances
17 -Vehicles, aircraft, vessels and 
associated transport equipment
18 -Instruments
19 -Arms and ammunition
20 -Miscellaneous manufactured articles
21 -Works of art
Other -Unclassified productsWT/TPR/S/429 /Rev.1  • Mexico  
 
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  Ministries such as SENER (petroleum products) and SEMARNAT (anti -pollution equipment and 
parts thereof) (Table 3.12).  
3.59.  Non-automatic licences are also required to import inputs under the IMMEX and PROSEC 
programmes. The procedure to obtain non -automatic licences for products imported under these 
programmes, listed in Chapter 98 of the Tariff, is different from the procedure used to obtain other 
non-automatic licences; in this case, the licences are regulated by Additional Rule 8a.68 Rule 8a 
concerns the licence issued by the SE for 25 tariff items under heading 98.02 of the Tariff, which 
allows companies to import machinery and equipment, materials, inputs, parts and components 
with preferential tariffs.69 
3.60.  Non-automatic licences are generall y processed through the Mexican Digital Window for 
Foreign Trade (VUCEM), regardless of the institution that issues them, except for used clothing, in 
which case the process is carried out physically in federal branches and sub -branches of the SE. 
The dead line for issuing non -automatic licences may not exceed 15  working days from the date of 
application. These licences are generally valid for one year and may be extended for a further year 
up to three times, except in the case of hydrocarbons and petroleum products, for which they may 
be valid for up to five years and extended once only for the same validity period.70 
3.61.  In addition to non -automatic import (export) licences, another type of permit may be 
required, such as animal health import certificates (Tabl e 3.12). There is an Interministerial 
Commission for the control of certain products such as pesticides, fertilizers and toxic 
substances.71 
Table 3.12 Ministries issuing import (export) permits, 2021  
Entity  Product  Legal framework establishing the classification and 
coding of the products/goods  
SSA Essential chemicals  
 Federal Law on the Control of Chemical Precursors, 
Essential Chemicals and Machines for Manufacturing 
Capsules and/or Tablets (Official Journal of 27 April 1998, 
most recent amendment published on 20 May 2021).  
Decision establishing the classification and coding of 
essential chemicals for which imports and exports are 
subject to prior notification to the Ministry of Health 
(Offic ial Journal of 30 June 2007, most recent 
amendment published on 1 June 2010).  
SSA Products intended for human 
consumption or for use in the 
processes of industries 
producing food for human 
consumption.  
Raw materials for medicines, 
pharma -chemicals, narcot ics 
and psychotropic substances; 
products for the diagnosis or 
treatment of disease in humans 
and products used in 
rehabilitation; chemical 
substances  General Law on Health  
Decision determining the classification and coding of 
goods and products whose impo rt, export, inward 
clearance or exit are subject to sanitary regulation by the 
Ministry of Health (Official Journal of 16 October 2012, 
most recent amendment published on 10 January 2018).  
 
68 Viewed at: http://gaceta.diputados.gob.mx/Gaceta/58/2001/dic/Impuestos/Cap98.PDF . 
69 In 2021, 25 tariff items were subject to Rule 8a licences corresponding to 23 of the 24 PROSEC 
sectors of heading 98.02 of the tariff schedule in the Law on General Import and Export Taxes. Information 
viewed at: http://www.siicex.gob.mx/portalSiicex/Transparencia/Permisos/infgeneral.htm . 
70 Decision establishing the classification and coding of hydrocarbons and petroleum products 
whose  import and export are subject to a prior permit from the Ministry of Energy (Of ficial Journal 
of 26 December  2020).  
71 Decision establishing the classification and coding of goods whose import and export are subject to 
regulation by the bodies comprising the Interministerial Commission for the Control of the Processing and Use 
of Pest icides, Fertilizers and Toxic Substances (Official Journal of 12  April 2013; most recent amendment 
published on 5  February  2016).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Entity  Product  Legal framework establishing the classification and 
coding of the products/goods  
SSA Tobacco and cigarettes  General Law for Tobacco Control  
Decision determining the classification and coding of 
goods and products whose import, export, inward 
clearance or exit are subject to sanitary regulation by the 
Ministry of Health (Official Journal of 16 October 2012, 
most recent amendment published on 10  January 2018).  
SENER  Hydrocarbons and petroleum 
products  Decision establishing the classification and coding of 
hydrocarbons and petroleum products whose import and 
export are subject to a prior permit from the Ministry of 
Energy (Official Journal of 29 December 2014, most 
recent amendment published on 22 February 2019).  
SENER  Nuclear materials and fuels, 
radioactive materials, 
equipment that generates 
ionizing radiation, dual -use 
equipment and goods in the 
nuclear field and related 
technology that ar e susceptible 
to diversion for the proliferation 
and manufacture of nuclear 
weapons and weapons of mass 
destruction  Decision establishing which goods imports and exports 
are regulated by the Ministry of Energy (Official Journal 
of 26 December 2020).  
SEMAR NAT Species listed in the CITES 
appendices; forestry products 
and by -products; pesticides, 
plant nutrients, toxic or 
hazardous substances or 
materials  Decision establishing which goods imports and 
exports  are regulated by the Ministry of the 
Environment  and Natural Resources (Official Journal 
of 26 December 2020).  
SEMARNAT 
and Federal 
Commission 
for 
Protection 
against 
Health Risks 
(COFEPRIS)  Pesticides, fertilizers and toxic 
substances  Decision establishing which goods imports and exports 
are regulated by the bodies comprising the 
Interministerial Commission for the Control of the 
Processing and Use of Pesticides, Fertilizers and Toxic 
Substances (Official Journal of 26 December 2020).  
SEDENA  Arms, ammunition, gunpowder, 
explosives, fireworks and 
chemical substances related to 
explosives  Decision establishing which goods imports and exports 
are regulated by the Ministry of Defence (Official Journal 
of 27 December 2020).  
SADER  Agricultur al products and 
aquatic species  Decision establishing which goods imports are regulated 
by the Ministry of Agriculture and Rural Development and 
regulating the issuing of certificates of origin for coffee 
exports (Official Journal of 26 December 2020).  
Source: Information provided by the authorities.  
3.1.7   Anti-dumping, countervailing and safeguard measures  
3.62.  The regulatory framework governing anti -dumping, countervailing and safeguard measures 
has not changed since the previous review. The LCE and its implementing regulations, as well as 
the WTO Agreements, continue to govern the use and application of contingency measures 
(anti-dumping and counterv ailing duties and safeguard measures). The existence of price 
discrimination (dumping) or subsidies, injury and a causal link between the two and the 
establishment of measures are determined on the basis of an investigation, in accordance with the 
administ rative procedure prescribed in the LCE and its implementing regulations and in the WTO  
Agreements.  
3.63.  The International Trade Practices Unit (UPCI) of the SE is the authority responsible for 
conducting dumping, subsidy and safeguard investigations and for pro posing the application (or 
not) of countervailing, anti -dumping and safeguard measures.72 The opinion of COCEX is taken 
into account before applying the duties. The UPCI also participates in the Advisory Committee on 
 
72 WTO document G/ADP/N/14/Add.56 -G/SCM/N/18/Add.56 of 21 April 2022 and online information. 
Viewed at: https://www.gob.mx/se/acciones -y-programas/industria -y-comercio -unidad -de-practicas -
comerciales -internacionales -upci. WT/TPR/S/429 /Rev.1  • Mexico  
 
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  International Trade Practices (CCPCI), an entity made up of public - and private -sector 
representatives, the mission of which is to formulate methodological and technical 
recommendations of a public and general nature in relation to investigations into unfair 
international trade practices and sa feguards.73 
3.64.  The procedures for investigating unfair international trade practices and safeguard 
measures have not changed since the last review in 2017.74 Such investigations can be initiated by 
a party or ex officio . Applications from parties can be submi tted by legally constituted 
organizations and natural or legal persons (producers of goods) using official forms.75 An ex officio  
investigation will be initiated when the SE has sufficient evidence of price discrimination or the 
existence of subsidies, inj ury and a causal link.  
3.65.  The administrative investigation must establish that dumped or subsidized imports cause or 
threaten to cause injury to the domestic industry, in accordance with the applicable rules. The 
UPCI determines the existence of material inju ry or threat of material injury to the domestic 
industry, taking into account all the factors of which it is aware.76 The UPCI always analyses 
whether there are factors other than the dumped or subsidized imports that could also affect the 
domestic industr y. A determination is based on facts and not merely on allegation, conjecture or 
remote possibility.  
3.66.  In investigations on unfair international trade practices and safeguard measures, the SE has 
a period of 25 days to accept the application and initiate the  investigation (by means of an 
initiating resolution that is published in the Official Journal), or a period of 17 days to ask the 
applicant for more information or data, which must be provided within a period of 20 days from 
receipt of the application (pr evention). If the UPCI considers that the information is satisfactory, it 
issues the initiating resolution; if the required elements and data are not provided in a timely 
manner, the application is rejected and the applicant is notified. If an investigatio n is initiated, the 
following day the SE notifies the interested parties of which it is aware and grants them a period of 
23 days from the date of receipt of the responses to the official questionnaire to submit their 
arguments, information and evidence. T he SE issues a preliminary resolution within a period of 90 
days from the day following the publication of the resolution initiating the investigation, which is 
published in the Official Journal and notified to the interested parties that are known. The dr aft 
final resolution must be submitted to COCEX for its opinion and published in the Official Journal 
within a period of  210 days, counted from the day following the publication of the resolution 
initiating the investigation in the Official Journal. Throug h the final resolution, the SE can impose a 
definitive measure, revoke the provisional measure or declare the investigation concluded without 
imposing measures.77 During the investigation, interested parties may request a conciliation 
process.  
3.67.  The SE deter mines the anti -dumping and countervailing measures, which may be lower than 
the margin of price discrimination or the amount of the subsidy, as long as they are sufficient to 
discourage the import of merchandise under unfair international trade practice co nditions (Article 
62 of the LCE). The definitive measures shall remain in effect for the length of time and to the 
extent necessary to offset the injury to the domestic industry. In general, they are eliminated 
within a period of five years following their  entry into force, unless before this period has elapsed 
the SE has initiated a procedure to review the validity of the measure to determine whether its 
removal would result in the repetition or continuation of dumping and injury, in which case it may 
be possible to extend the measure for another five years. An annual review procedure can also be 
carried out at the request of an interested party or ex officio , pursuant to which both dumping or 
the amount of the subsidy and the injury are analysed. If, when reviewing a measure, the margins 
 
73 Online information from th e CCPCI. Viewed at: 
http://www.ccpci.economia.gob.mx/swb/es/ccpci/p_miembrosdel_ccpci . 
74 Online information from the CCPCI. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/31681/flujograma_procedimiento_antidumping.pdf ; 
https://www.gob.mx/cms/uploads/attachment/file/31682/flujograma_procedimiento_antisubvencion.pdf  y 
https://www.gob.mx/cms/uploads /attachment/file/31680/flujograma_medidas_salvaguarda.pdf . 
75 Official forms. Online information. Viewed at: https://www.gob .mx/se/acciones -y-
programas/industria -y-comercio -unidad -de-practicas -comerciales -internacionales -upci. 
76 These factors are indicated in Articles 41 and 42 of the LCE and Articles 64 and 68 of the regulations 
implementing the LCE.  
77 Article 59 of the LCE. O nline information. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/31681/flujograma_procedimiento_antidumping.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  of dumping or the amount of the subsidies are different from those established in the initial 
investigation, new measures will be imposed to replace the previous ones.78 
3.68.  The SE may accept an undertaking from the exporter or  government concerned, issue the 
appropriate resolution and declare the administrative investigation suspended or terminated; the 
aforementioned resolution is notified to the interested parties and is published in the Official 
Journal. During the period co vered by this review, the commitments undertaken by two exporters 
were reviewed.  
3.69.  Mexican Law establishes a procedure against circumvention in the case of anti -dumping, 
countervailing or safeguard measures; goods imported under these conditions shall be sub ject to 
payment of the applicable duties or to the corresponding safeguard measure. Circumvention of 
preliminary or definitive measures shall be determined through proceedings initiated ex officio  or 
at the request of an interested party.79 During the revi ew period, two anti -dumping circumvention 
investigations were initiated. In both cases, circumvention was confirmed and the corresponding 
measures were applied.  
3.1.7.1   Anti-dumping measures  
3.70.  Over the period 2017 -21, Mexico initiated 28 anti -dumping investigations (Table A3.4), 
fewer than in the period 2012 -16 (November), when 34 investigations were initiated. Most of the 
investigations initiated concern products from China (39.3 %), the EU (14.3 %), the United States 
(10.7 %), Japan (7.1 %) and the Republic of Korea (7.1 %). During the review period , Mexico 
imposed  28 final measures.  
3.71.  As of December  2021, Mexico had 78 anti -dumping duties and two price undertakings. 
These duties mainly affected base metals, which accounted for 66.7 % of all measures (Chart 3.4). 
Most of these measures are imposed on products originating in China (44.9 %), followed by the EU 
and the United States (both 10.3 %) and Ukraine (6.4 %). The average duration of an anti -dumping 
measure in force in December  2021 was eight years and seven months;  however, there are 22 
measures that have been in force for more than 10 years.80 
 
78 Article 106 of the regulations implementing the LCE.  
79 Online information. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/167045/flujograma_Elusion_2016_1122 .pdf. 
80 WTO document G/ADP/N/357/MEX of  30 September 2021.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Chart 3.4 Anti-dumping measures, 2017 -21 
(Number of investigations initiated and measures in force)  
 
Source:  WTO, Integrated Trade Intelligence Portal (I -TIP) and WTO document G/ADP/N/364/MEX 
of 21 March  2022.  
3.1.7.2   Countervailing measures  
3.72.  During the review period, Mexico did not initiate any investigation s related to countervailing 
measures.  
01020304050607080
2017 2018 2019 2020 2021
ArgentinaKazakhstanBrazilChinese TaipeiJapanRussian FederationIndiaKorea, Republic ofUkraineUnited StatesEU-27China
0510152025303540Base metals
66.7% Fats and oils
2.6%
Other
9%
Electrical 
machines and 
apparatus
3.8%Plastics
3.8%
Miscellaneous 
products 
5.1%Stone and 
ceramic 
products 
2.6%Cases initiated
Measures in force
(at end of period)
Chemicals
6.4%Total measures in force by HS section and partner, at 31 December 2021Iinitiated i nvestigations by HS section and partner, 2017 -2021
Chemicals
10.7%
Base metals
50%Electrical machines 
and apparatus
7.1%Plastics
14.3% Textiles
10.7%
Miscellaneous 
products
7.1%
0 2 4 6 810 12 14BrazilRussian FederationIndiaUnited KingdomChinese TaipeiViet NamKorea, Republic ofJapanUnited StatesEU-27China
Number of measures
Number of measuresWT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.73.  As at 30 June 2021, Mexico had three countervailing measures in force, with an average 
duration of eight years and two months (Table 3.13).81 
Table 3.13 Definitive counter vailing measures in force, 2017 -21 
Member  Product  HS code  Date of original imposition  
India Metoprolol tartrate  2922.19.28  26.07.2014  
Amoxicillin trihydrate  2941.10.12  28.11.2012  
Dicloxacillin sodium  2941.10.08  18.08.2012  
Source:  WTO Documents G/SCM/N/379/MEX and G/SCM/N/386/MEX of 17  September  2021 and 
10 March  2022, respectively.  
3.1.7.3   Safeguard measures  
3.74.  During the review period, Mexico did not initiate any safeguard investigations. Mexico does 
not have any safeguard measures in force.  
3.75.  Mexico has reserved the possibility of using the special safeguard provision of the 
Agreement on Agriculture; it did not, however, use this provision during the 2017 -20 period.82 
3.2  Measures Directly Affecting Exports  
3.2.1   Registration and documentation  
3.76.  There have be en no major changes to export requirements since the previous review.  
3.77.  Exporters (and importers) must be registered with the Federal Taxpayers Registry (RFC) in 
order to be able to issue electronic invoices, apply for certificates and/or permits, complete export 
formalities, or obtain refunds, tax rebates or certain benefits under government programmes. In 
addition, natural or legal persons exporting certain goods (classified under 15 HS chapters) must 
be enrolled in the SAT's Register of Exporters in Specific Sectors.83 The products covered by this 
requirement vary depending on the risk models defined by the customs authorities for each 
product. Exporters and importers may be suspended from the registers for failure to comply with 
the requirements stipulated in customs and related regulations.84 For example, in the case of 
definitive exports or returns of goods abroad, suspension would take place if the declared goods 
were found not to have left the country or if at least 90 % of the declared value had not been 
returned.  
3.78.  Exporters may undertake customs clearance of goods either through their accredited legal 
representative, a customs broker or, having sought and received authorization from the customs 
authority, without the involvement of a customs broker. Where there is no customs broker, the 
exporter is assigned an authorizatio n number allowing the declaration to be transmitted through 
the electronic customs system. The export declaration must specify the destination regime. Mexico 
operates two export regimes: (i) definitive and (ii) temporary, which may take the form of an 
exported product that returns to the country in the same condition that it left or for manufacture, 
processing or repair.85 SAT-authorized exporters may submit the export declaration and the 
various substantiating documents in electronic form to Customs throug h VUCEM.86 If exporters are 
 
81 WTO documents G/SCM/N/379/MEX and G/SCM/N/386/MEX of 17 September 2021 
and 10 March  2022, respectively.  
82 WTO documents G/AG/N/MEX/43 and G/AG/N/MEX/46 of 12 February 2019 and 28 June 2019, 
respe ctively, and WTO documents G/AG/N/MEX/49 and G/AG/N/MEX/50 of 20 May 2021.  
83 These products include cane molasses; ethyl alcohol; alcoholic beverages (including beer and 
tequila); cigars and tobacco; iron ores; gold, silver and bronze; plastics; rubber; gl ass; steel; and aluminium 
(Annex 10 to the General Foreign Trade Rules for 2022, Official Journal of 6  January  2022). Viewed at: 
https://www.sat.gob.mx/n ormatividad/14537/reglas -generales -de-comercio -exterior -(rgce) . 
84 Article 144 (XXXVI) of the Customs Law and Rule 1.3.3., Causales de suspensión en los padrones , 
under the General Foreign Trade Rules for 2022 (Official Journal of 24 December 2021).  
85 Article 90 of the Customs Law. Viewed at: 
http://www.diputados.gob.mx/LeyesBiblio/pdf/12_241220.pdf . 
86 Documents required for exports: the transport document, the commercial invoice or el ectronic proof 
of value (COVE), the packing list, the customs clearance and certificates showing the quality and quantity of 
the goods.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  not so authorized, their customs broker or legal representative undertakes customs formalities on 
their behalf.  
3.79.  Adherence to certain non -tariff export regulations or restrictions is required for some goods, 
namely: a phytosanita ry or animal health certificate (issued by the National Health, Food Safety 
and Agri -food Quality Service (SENASICA) of the SADER); a health certificate for beverages, 
prepared, processed or tinned foods, medicines and human blood derivatives (issued by CO FEPRIS 
of the Ministry of Health); an export permit or non -automatic export licence (issued by the Ministry 
of Economic Affairs); a CITES certificate (issued by SEMARNAT); a certificate issued by the 
regulatory boards for exports of tequila, mezcal and cof fee; and certificates of origin for exports 
eligible for preferential treatment in the destination country. These documents are processed 
through  VUCEM.  
3.80.  The customs processing fee (DTA) is payable on all exports.87 In 2022, the DTA on exports 
was MXN  379 ( MXN 288 in 2016), regardless of the export regime or type of export (Table 3.14). 
Exporters of goods to certain markets are exempt from the DTA.88 
Table 3.14 Customs processing fee (DTA) for exports, 2022  
Export type or regime  Fee 
Definitive exportation  MXN 379 
Export of goods exempt from foreign trade taxes under the Customs Law  
Return of definitively exported goods  
Temporary exports to be returned in the same condition  
Exports of goods having no customs value  MXN 379 
Source: Federal Law on Duty . 
3.2.2   Export taxes and duties  
3.81.  The general export tax (IGE) is levied in order to guarantee supplied to the  domestic market 
or to protect human health, the environment, fauna, flora  and cultural heritage. In  2021, just as in 
2016, only two 8 -digit HS 2017 tariff lines (HS 2714.90.99 (other bitumens and asphalts) and HS 
2715.00.99 (other bituminous mixtures)) were subject to the general export tax, at a rate of 25 %. 
The tax base for t he export tax is the transaction value of the goods.89 
3.82.  Definitive exports by companies' resident in Mexico benefit from a 0 % IEPS rate90 and 
a 0% VAT rate on the value of sales of goods or services for export.91 
3.2.3   Export prohibitions, restrictions and licensing  
3.83.  Mexico regulates exports of certain products in order to protect public health, public 
morality, security and public order; to conserve the country's non -renewable and historically 
significant resources; and to guarantee supplies  of essential consumer goods and raw materials.92 
Prior to the imposition of measures to regulate exports, the Foreign Trade Commission (COCEX) 
evaluates studies prepared by the departments proposing the measures in question.  
3.84.  Mexico bans the export of cert ain chemical products, drugs and vaping devices (41 8 -digit 
HS 2017 tariff lines) on the grounds of public health or safety or in order to comply with 
international agreements. Mexico also prohibits the export of totoaba and turtle eggs of any type 
 
87 With the exception of the operations referred to under rules 5.1.1. and 5.1.2. of the General Foreign 
Trade Rules for 2022.  
88 In 2022, this exemption applied to the following agreements: T -MEC, the Chile -Mexico Free Trade 
Agreement, the Mexico -Colombia Free Trade Agreement, ACE  No. 66 and the Free Trade Agreement between 
Mexico and Costa Rica, El Salvador, Guatemala, Hond uras and Nicaragua . 
89 Articles 79 and 80 of the Customs Law (Official Journal of 15 December 1995, latest amendment 
of 12 November 2021).  
90 Law on the IEPS (Official Journal of 12 November 2021).  
91 Law on VAT (Official Journal of 29 December 1978, latest amendment of 12 November 2021).  
92 Article 15 of the LCE.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  (HS 041 0.00.01) for environmental conservation reasons.93 In addition, there is a ban on the 
export of poppy seeds (HS 1207.91.01) and goods designated as archaeological monuments by 
the Ministry of Public Education (HS 9705.00.05).  
3.85.  The trade regime provides for the use of automatic licensing (automatic permits) and 
non-automatic licensing (prior permits) for exports. Automatic licensing is used for the purpose of 
keeping a statistical record of foreign trade transactions. Licences are issued by the Ministry of 
Economic Affairs and are available to any legally -established foreign trade operator. 
In 2021,  75 tariff lines required an automatic licence, primarily for the export of base metals, 
certain food products and minerals (Chart 3.5).  
3.86.  Non-automatic export licens ing is intended to regulate trade in certain products for the 
purpose of consumer, health or environmental protection or in order to comply with international 
treaties or agreements to which Mexico is party.94 Non-automatic licences are required for the 
export of these products to any destination on an MFN basis, with the exception of licences 
administered under preferential agreements. Non -automatic licences are processed through the 
VUCEM and are generally issued by the Ministry of Economic Affairs, altho ugh depending on the 
product, other bodies may also be involved. For example, in the case of export of petroleum 
products, the Ministry of Economic Affairs will request an opinion from the Directorate -General for 
Industrial Hydrocarbon Processing (DGTIH) w ithin SENER and the Tax Revenue Policy Unity (UPIT) 
within the SHCP. SENER may refuse to grant a licence if the authorization has an impact on public 
finances, if production is insufficient or if the energy balance analysis shows that the exports 
concerned  jeopardize domestic supplies and are detrimental to Mexico's energy security, or if 
exporting runs counter to the country's energy policy.95 For the export of iron ore (HS 2601.11.01 
and 2601.12.01), the Ministry of Economic Affairs liaises with the Gener al Office of Mining. In this 
instance, non -automatic export licences are granted up to a maximum volume of 
300,000  tonnes.96 
3.87.  During the period under review, there was an increase in the number of tariff lines carrying 
a non -automatic licensing requirement. In 2021, 13.54 % of the total Mexican tariff schedule 
(1,057  lines) was subject to non -automatic export licensing compared to 4.65 % (449 lines) in 
2016. There was also an increase in the coverage of products subject to non -automatic export 
licensing. In 2016, this type of non -automatic licence was used primarily to regulate exports of 
chemical products, whereas in 2021, in addition to these products, a licence was required for the 
export of machines and mechanical appliances. Together with chemi cal products, these are the 
main exports to which this type of measure currently applies (Chart 3.5).  
 
93 The totoaba is a species considered at critical risk of extinction and included on the Red List of 
Threatened Species  of the International Union for Conservation of Nature  (IUCN). There is a  ban on exports of 
fresh totoabas (HS 0302.89.01), fresh edible totoaba offal (HS  03.02.9903), frozen totoaba (HS 0303.89.01) 
and frozen edible totoaba offal (HS 03.03.9903) (information provided by the authorities).  
94 For example, the Wassenaar Arrangemen t on Export Controls for Conventional Arms and Dual -Use 
Goods and Technologies; the Convention on International Trade in Endangered Species of Wild Fauna and Flora 
(CITES); the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazard ous Chemicals 
and Pesticides in International Trade; and the Kimberley Process Certification Scheme.  
95 SIICEX. Viewed at: 
http://www.siicex.gob.mx/portalSiicex/Transparencia/Permisos/archivos/Fichaspermisos/2015/FICHA%20INFO
RMATIVA%20PETROLIFEROS%202015.pdf . 
96 SIICEX. Viewed at: 
http://www.siicex.gob.mx/portalSiicex/Transparencia/Permisos/archivos/Fichaspermisos/2016/FICHA%2 0INFO
RMATIVA%20MINERAL%20DE%20HIERRO%202016.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Chart 3.5 Automatic and non -automatic export licensing by HS section, 2021  
(Number of tariff lines)  
 
Source:  WTO Secretariat calculations, on the basis of data provided by the authorities.  
3.88.  Mexico has preferential export quotas under its trade agreements with Colombia (soybean, 
sunflower and rape or colza oils) and Japan (citric acid and citric acid salts,  and agave syrup) and 
the European Union (cane molasses).97 
3.2.4   Export support  
3.89.  Mexico notified the WTO that, over the period 2016 -18, no subsidies had been granted for 
exports of agricultural products.98 In 2019, it notified that it had granted subsidies for a gricultural 
exports during 2017 and 2018.99 In 2021, Mexico notified that in 2019 and 2020, it had granted 
neither subsidies for exports of agricultural products nor food aid.100 
3.90.  Mexico has continued to implement export promotion programmes through tariff a nd tax 
concessions, aimed particularly at the manufacturing sector, with a view to promoting companies' 
productivity and competitiveness and thereby enabling Mexican products to be further 
incorporated into the global market. The main export promotion prog rammes remain IMMEX, 
launched in 2006, and the import duty drawback programme for exporters , dating from 1995. 
These programmes have not undergone any major change during the period under review.  
3.91.  IMMEX enables producers of goods for export or companies pro viding services for export to 
import, on a temporary basis, various goods (raw materials, inputs, components, packing 
materials and packaging, as well as machinery and equipment) free of general import tax and, 
where  applicable, of anti -dumping or counterv ailing duties, in order to use them in the production  
of export  products . They may, in addition, obtain a significant VAT and/or IEPS tax credit 
equivalent to 100 % of the VAT and/or IEPS payable on the imported products. The amount of time 
 
97 Online information from the SE. Viewed at: 
http://www.siicex.gob.mx/portalSiice x/SICETECA/Acuerdos/Cupos/Cupos%20x%20PRODUCTO/Cupos%20por
%20producto.htm . 
98 WTO documents G/AG/N/MEX/37 of 7 March 2018, G/AG/N/MEX/39 of 13 September 2018 
and G/AG/N/MEX/44 of 18 March 2019.  
99 WTO documents G/AG/N/MEX/39/Rev.1 and G/AG/N/MEX/44/Rev.1 of 19 August 2019.  
100 WTO documents G/AG/N/MEX/51 and G/AG/N/MEX/52 of 21 May 2021.  
106
26
4 620285
34 36
22
4 21916
356291
2562
24
961 1 6 2 363
050100150200250300350
1 2 3 4 5 6 7 8 910 11 12 13 14 15 16 17 18 19 20 21OtherNon-automatic licences
Automatic licencesHS Section:
1 -Live animals
2 -Vegetable products
3 -Fats and oils
4 -Prepared foodstuffs
5 -Mineral products
6 -Chemical products
7 -Plastics
8 -Hides and skins, leather
9 -Wood
10 -Paper or paperboard, wood pulp
11 -Textiles
12 -Footwear
13 -Articles of stone
14 -Natural pearls, precious metals
15 -Base metals
16 -Machinery and mechanical appliances
17 -Aircraft or vehicles
18 -Instruments
19 -Arms and ammunition
20 -Miscellaneous manufactured articles
21 -Works of art
Other -Unclassified productsWT/TPR/S/429 /Rev.1  • Mexico  
 
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  that the goods m ay remain within the national territory depends on the good. For example, some 
fuels, packing materials, packaging, labels and leaflets may remain in Mexican territory for up to 
18 months, while containers and trailer boxes may remain for up to two years. Certain products 
may not be imported under IMMEX or must comply with specific requirements.101 
3.92.  Both locally -owned firms and foreign -owned firms established in Mexico are eligible for 
IMMEX if their annual foreign sales exceed USD  500,000 (or equivalent in o ther currencies) or 
billed exports represent at least 10 % of their total sales. The programme still comprises five 
options: IMMEX Holding Company, IMMEX Industrial, IMMEX Services, IMMEX Accommodation102 
and IMMEX Tertiary.103 Incentives are the same across all options.  
3.93.  A firm may be eligible for both the IMMEX programme and a PROSEC programme at the 
same time ( Section 3.3.1).  
3.94.  The number of companies operating under IMMEX fell over the period under review 
from 6,448 in 2016 (Se ptember) to 6,007 in 2021. These companies operate primarily in the 
manufacturing sector (for example, metal products, transport equipment and parts, textiles and 
textile articles, and plastics and rubber). The IMMEX programme remains very important for 
Mexico's trade. Over the period 2016 -21, firms benefiting from IMMEX were on average 
responsible for 55.8 % of exports and 43.3 % of imports (Chart 3.6). In 2021, IMMEX beneficiaries 
accounted for 55.4 % of exports and 43.7 % of imports.104 
3.95.  The import duty drawba ck programme for exporters has not undergone any major changes 
since the last review.105 The drawback system allows beneficiaries to recoup the duty paid on the 
import of raw materials, parts, components and other inputs used to produce goods for export; on  
the import of goods returned in the same condition; or on the import of goods for repair or 
alteration and subsequent export.  
Chart 3.6 Exports and imports by type of regime, 2016 -21 
(USD  billion)  
 
Source:  WTO Secretariat, on the basis of information provided by the authorities.  
 
101 Annex I and Annex II of the Decree to promote the Manufacturing, Maquila and Export Services 
Industry (Official Journal of 1 November 2006, latest amendment of 24 December 20 20). 
102 Where one or more foreign companies provide technology and/or inputs without belonging to IMMEX.  
103 Article 3 of the Decree to promote the Manufacturing, Maquila and Export Services Industry 
(Official  Journal of 1 November 2006, latest amendment of 2 4 December 2020).  
104 In 2021, exports of these goods amounted to 56.1 % (56.4 % in 2016 ), with imports amounting 
to 52.3% (54.9 % in 2016) (information provided by the authorities) . 
105 Decree establishing the drawback of import duty for exporters (Official Journal of 11 May 1995 and 
its amendments).  
0100200300400500600
2016 2017 2018 2019 2020 2021
Immex Non-ImmexTotal exports Total imports
0100200300400500600
2016 2017 2018 2019 2020 2021WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.2.5   Export promotion  
3.96.  In 2019, ProMéxico, the body previously responsible for export promotion, was closed 
down106 and its functions passed to the Ministry of Economic Affairs, whi ch is now tasked with 
export promotion in coordination with the Ministry of Foreign Affairs.107 This institutional change 
was made in order to tap into "the Mexican Foreign Service's foreign direct investment and foreign 
trade promotion capabilities".108 As a result, export promotion policy has also undergone changes; 
ProMéxico offered export financing whereas the Ministry of Economic Affairs provides technical 
assistance through strategic trade information, in addition to connecting Mexican and foreign 
firms. 
3.97.  During 2020 and 2021, the Ministry of Economic Affairs, through the Global Economic 
Intelligence Unit, launched various platforms (DataMéxico, ExportaMX and ComerciaMX) as part of 
its strategy to increase the presence of Mexican products abroad. DataMéxi co is a platform for 
viewing and analysing open data to foster innovation, inclusiveness and diversification within the 
Mexican economy.109 ExportaMx provides general information on export opportunities by product 
and country.110 As of 2021, the platform con tained trade data profiles for 6,553 products 
and 238 countries.111 ComerciaMX is linked to ConnectAmericas112, a platform specifically created 
to enable MSMEs to connect with buyers, suppliers and investors worldwide. Access to the 
ComerciaMX platform is fr ee of charge and brings together over 400,000 enterprises from 
100 countries.113 
3.98.  In addition, the Ministry established the International Business Centre (CINSE) in 2019, as 
part of the public policy to attract foreign investment and promote exports. As of J une 2020, the 
Centre had assisted 1,300 individuals and 400 firms with a service offering designed to attract 
foreign investment and harness opportunities to do business worldwide.114 
3.99.  ProMéxico formerly offered financial support to exporting firms or those with export 
potential to enable them, inter alia , to commission consultancy services, conduct market surveys 
or take part in international fairs.115 In 2017 (most recent data available), ProMéxico provided 
repayable financial assistance totalling approximat ely MXN  24 million to 595 firms. The financial 
support mostly went towards strategic trade missions and technical assistance to provide 
employees with training in foreign trade -related topics.116 
3.100.   Other institutions also support the export sector. The Nation al System for Guidance to 
Exporters (SNOE) and the Joint Export Promotion Commission (COMPEX) assist interested firms 
with export procedures ( Section 2).117 
 
106 Decree authorizing the divestiture through closure of the public trust fund, ProMéxico, deemed to be 
a semi -public body  (Official Journal of 3 May 2019). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5559284&fecha=03/05/2019&print=true . 
107 Article 5 of the Decree authorizing the divestiture through closure of the public trust fund , ProMéxico, 
deemed to be a semi -public body (Official Journal of 3 May 2019). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5559284&fecha=03/05/2019&print=tru e. 
108 Government of Mexico, Informe de Gobierno 2019 -2020, p. 104. Viewed at: 
https://presidente.gob.mx/wp -
content/uploads/2020/09/PRESIDENTE% 20AMLO%202INFORME%20DE%20GOBIERNO%202019 -2020.pdf . 
109 Information provided by the authorities.  
110 EXPORTAMX. Viewed at: https://exportamx.economia.gob.mx . 
111 Information provided by the authorities.  
112 ConnectAmericas is a social network designed to help SMEs participate in international markets. 
Viewed at: https://www.iadb.org/es/project/RG -T3453 . 
113 Information provided by the autho rities.  
114 Government of Mexico, Informe de Gobierno 2019 -2020, p. 324. Viewed at: 
https://presidente.gob.mx/wp -
content/uploads /2020/09/PRESIDENTE%20AMLO%202INFORME%20DE%20GOBIERNO%202019 -2020.pdf . 
115 The support granted by ProMéxico to its beneficiaries took the form of repayable financing to cover 
the categories of expenditure listed in the ProMéxico Support and Services Catalogu es. 
116 Decree authorizing the divestiture through closure of the public trust fund, ProMéxico, deemed to be 
a semi -public body (Official Journal of 3 May 2019).  
117 National Entrepreneurs Institute . Viewed at: https://www.redemprendedor.gob.mx/index.php/m -
inadem/16 -articulo -inadem -5; and online information. Viewed at: 
http://www.contactopyme.gob.mx/compex /default.asp . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.2.6   Export finance, insurance and guarantees  
3.101.   During the review period, there were no major changes in terms of the institutions offering 
export finance, insurance and guarantees. The National Foreign Trade Bank (Bancomext) - a 
federal development bank – still provides these services. Bancomext acts a s a first and second tier 
bank and offers financial products aimed at direct and indirect exporters (Table 3.1 5). Bancomext 
also has sector -specific programmes to address the financing needs of  "strategic" sectors.118 
Table 3.15 Financial products offered by Bancomext  
 First Tier  Second Tier  
Amount  Greater than USD 3 million  Less than USD 3 million  
Type of enterprise  SMEs and large enterprises  SMEs  
Financial products  Credit, international factoring, letters of credit, 
credit insurance (through CESCEMEX)  PyMEx credit (PyMEx exporter 
and importer)  
Source:  Online information from Bancomext, viewed at: 
http://www.bancomext.com/conoce -bancomext/quienes -somos  and 
http://www.bancomext.com/empresas -que-apoyamos/exp ortadores . 
3.102.   During the review period, the main financing instrument offered by Bancomext was credit 
for sums exceeding USD  3 million to exporters, regardless of the sector in which they operated or 
the size of the firm. Bancomext also offers financing and t echnical assistance through the Financial 
Training Institute for Foreign Trade (IFFCE), enabling SMEs to become more competitive on the 
international market. In 2020 (Q3), Bancomext launched the Impulso PYME  50 scheme to 
finance  SME working capital.  
3.103.   Throug hout the period, SMEs received a substantial portion of the credit (Table 3.16 ). 
"Strategic" sectors in general still receive around 50 % of all credit (over 70 % in 2018); of these, 
the tourism sector, followed by energy and industrial parks and premises we re the largest 
recipients of credit. In 2020, in view of the economic and social circumstances stemming from the 
pandemic, Bancomext put in place credit restructuring plans and grace periods for capital 
payments, both in local and foreign currency. Further more, support was granted to finance 
working capital on top of debt rescheduling. Bancomext authorized rescheduling in 139 cases 
totalling USD  288 million. The credit lines relating to these rescheduled debts amount to 
USD 3,309  million, primarily in the t ourism, automotive, transport and logistics sectors.119 
Table 3.16 Credit granted by Bancomext, 2016 -20 
(MXN  million)  
 2016  2017  2018  2019  2020  
Total credit amount  234,504  253,739  275,706  268,619  277,782  
Beneficiary enterprises (number)  4,605  4,256  4,492  4,649  3,519  
Of which SMEs (%)  90.8 88.9 88.4 90.8 87.9 
Total credit amount for "strategic" 
sectors  163,085  176,118  196,050  190,954  200,030  
By "strategic" sector (%)       
Tourism  20% 15% 16% 17% 25% 
Energy  12% 10% 14% 17% 13% 
Industrial facilities (maquila)  16% 15% 14% 12% 18% 
Transportation and logistics  6% 6% 6% 7% 7% 
Automotive  6% 7% 6% 6% 8% 
Telecommunications  4% 4% 4% 5% 2% 
Electricity - electronics  4% 5% 4% 2% 1% 
Mining - metallurgy  4% 4% 3% 2% 1% 
Other enterprises  28% 34% 33% 32% 25% 
Source:  Bancomext annual reports. Viewed at: 
https://www.bancomext.com/conoce -bancomext/bancomext -en-cifras/informe -anual . 
 
118 The sectors deemed strategic in 2021 were aerospace, the automotive industry, electrical -electronic 
components, energy, the maquila industry and industrial facilities , mining and metallurgy, telecommunications, 
transport ation and logistics,  and tourism. Viewed at: http://www.bancomext.com/empresas -que-
apoyamos/sectores -estrategicos . 
119 Bancomext (2021), Informe anual 2020 . Viewed at: 
https://www.bancomext.com/staticcontent/informe -anual -2020/files/Informe -Anual -2020.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.104.   Starting in 2020, Bancomext rolled out a new credit scheme at preferential rates throug h 
private banks ( T-MEC Foreign Trade Product (Bancomext)). The programme is intended to boost 
the productivity of exporting firms of all sizes, as well as those involved in trade, prior to the entry 
into force of the Mexico -United States -Canada Agreement ( T-MEC), while also promoting 
diversification of their exports. The upper ceiling for borrowing is MXN  30 million (or USD 
equivalent). In 2020 (financial year) MXN  500 million of counter -guarantee funds were earmarked 
to cover credit provided by commercial banks up to MXN  7 billion.120 
3.105.   Bancomext also promotes exports by means of other financial instruments such as the 
international factoring service and export letters of credit. Through the international factoring 
service, exporters obtain financing for up to  90% of the value of the invoice, among other 
things.121 Bancomext issues letters of credit as a means of payment for exporting firms, reducing 
the need for Mexican exporting firms to perform credit checks on the purchasing company, given 
that the payment o bligation rests with the banks.122 
3.106.   The Foreign Trade Guarantee (formerly the Buyers' Guarantee) is a mechanism whereby 
Bancomext gives guarantees (for up to USD  3 million) to financial intermediaries located abroad so 
that they can finance the purchase of M exican products and/or services. This instrument allows 
exporters to be paid for their goods and services in cash, thereby avoiding the credit risks and 
country risks of buyers.123 
3.107.   Mexico does not have any official export credit insurance programmes. Export  credit 
insurance is offered through CESCEMEX, a company in which Bancomext has a minority holding. 
This insurance covers commercial risks arising from an importer's inability to cover debts 
(insolvency), specifically legal insolvency, de facto insolvency and prolonged payment arrears.124 
3.3  Other measures affecting production and trade  
3.3.1   Incentives  
3.108.   Mexico still implements a number of support programmes to promote exports, attract 
investment and create jobs. During the review period, Mexico notified various expor t subsidy 
programmes for the fisheries and aquaculture, film and high -technology and industrial 
development sectors. The most noteworthy of these are the IMMEX and PROSEC programmes.125 
Mexico also notified training, and technical and financial assistance p rogrammes, mainly for MSMEs 
and/or to promote research and development (R&D). Most of these programmes were already in 
place and had been notified at the time of the previous review in 2017. Tax incentives related to 
the of income tax (ISR) and the IEPS, a nd to of diesel fuel consumption, among others, are still in 
force.  
3.109.   Mexico continues to implement sectoral promotion (PROSEC) programmes with the 
objective of promoting competitiveness.126 Through these programmes, which have not changed 
substantially since their establishment, inputs and machinery needed to produce  specific goods can 
be imported under  a preferential tariff, irrespective of whether the final good is consumed on the 
domestic  market or exported. Each PROSEC lists the inputs by tariff line, showing the 
corresponding preferential tariff.  
3.110.   The only change since the previous review in terms of sectors covered by PROSEC 
programmes was the introduction  of a programme for the fertiliz er sector. However, the benefit of 
the PROSEC for this sector is limited as it only includes two tariff lines. The PROSEC programmes 
 
120 WTO document G/SCM/N/372/MEX of 12 January 2022 and online info rmation: 
https://www.bancomext.com/pymex/productos/comercio -exterior -tmec. 
121 Bancomext. Viewed at: https://www.bancomext.com/pymex/productos/factoraje -internacional . 
122 Bancomext. Viewed at: https://www.bancomext.com/pymex/productos/carta s-de-credito/cartas -de-
credito -de-exportacion . 
123 Bancomext. Viewed at: https://www.bancomext.com/productos -y-servicios/garantias/garantia -
comprador . 
124 Information  viewed  at: https://www.gob.mx/cms/uploads/attachment/file/63793/GuiaBasicaDelExpo
rtador.pdf . 
125 WTO document G/SCM/N/372/MEX of  12 January 2022.  
126 Decree establishing various sectoral promotion programmes (latest amendment 
on 29 November  2012).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  with the largest number of inputs with preferential tariffs are those for the automotive and auto 
parts industry, and the e lectronics and the electricity industries. The total number of tariff lines 
covered by PROSEC programmes in 2021 (May) was  2,487. The most common preferential tariff 
rates granted under PROSEC programmes, in 2021, were 0 % and 5 %, which were applied 
to 76.2% and 19.1 % of the tariff lines covered, respectively (Chart 3.7).  
Chart. 3.7 Inputs covered by the various PROSEC programmes, 2021  
(Industry)  
 
Source:  Undersecretariat for Foreign Trade, Directorate -General for Trade Facilitation and Foreign Trade. 
Decree establishing various sectoral promotion (PROSEC)  programmes , Tariff Structure of Article 5 
of the PROSEC decree (in force since 17  May 2021), tariff schedule under  the LIGIE . Viewed at: 
https://www.snice.gob.mx/cs/avi/snice/prosecmsbiblioteca.html . 
3.111.   Mexico also grants other tax incentives, such as exemption from the income tax, tax 
credits, and exemp tion from payment of the ISAN for electric vehicles (Table 3.17). Some of the 
tax incentives granted under the Federal Revenue Law, valid in principle for one year, which were 
in effect at the time of the previous review in 2017, still remain in effect.  
Table 3.17 Some tax incentives, 2022  
Name of programme  Description  Legal instrument  
Exemption from payment 
of income tax for income 
earned from crop farming, 
livestock farming, forestry 
and fishing  Legal perso ns engaging exclusively in crop 
farming, livestock farming, forestry and 
fishing do not pay income tax as long as their 
annual income does not exceed the 
equivalent of 20 times the annual value of 
the Unit of Measurement and Update (UMA) 
for each partner, although the total may not 
exceed 200 UMA.  
Natural persons carrying out these activities 
do not pay the tax while their annual income 
does not exceed the equivalent of 40 UMA.  Article 74, eleventh paragraph, 
of the Income Tax Law (Official 
Journal of 11 De cember 2013)  
Reduced rate of the income 
tax applicable to the 
primary and agro -industrial 
sector  Natural and legal persons engaging 
exclusively in crop farming, livestock 
farming, forestry and fishing activities may 
receive a reduction of 40% and 30% in the 
payment of income tax, respectively.  Article 74, twelfth paragraph of 
the Income Tax Law (Official 
Journal of 11 December 2013)  
0 50 100 150 200 250 300 350 400 450 500 550 600242322212019181716151413121110987654321
0% 2.5% 3% 5% 7% 10%
Number of lines14 Pharmaceutical products, medicines and
medical equipment
15 Transport, except the automotive and 
autoparts industry
16 Paper and cardboard
17 Wood
18 Leather and skins
19 Automotive and autoparts
20 Textiles and clothing
21 Chocolate, confectionery and similar
22 Coffee
23Food and sugar
24 Fertilizers1 Electricity
2 Electronics
3 Furniture
4Toys, games and sport requisites
5 Footwear
6 Mining and metals
7 Capital goods
8 Photography
9 Agricultural machinery
10 Miscellaneous industries
11 Chemical
12 Rubber and plastic goods
13 S teelWT/TPR/S/429 /Rev.1  • Mexico  
 
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  Name of programme  Description  Legal instrument  
Tax incentives for 
generating energy from 
renewable sources  100% income tax deduction of the cost of 
machinery and equipmen t used to generate 
renewable energy or of systems for the 
efficient co -generation of electricity.  Article 34, Section XIII of the 
Income Tax Law (Official 
Journal of 1 December 2004)  
Incentive for the use of 
electronic payment 
methods  Financial institutio ns that promote the use of 
electronic payment methods obtain a credit 
against their income tax or the amount 
withheld from third parties for the same tax.  Decree granting fiscal 
incentives to encourage the use 
of electronic payment methods 
(Official Journa l of 
28 October  2021)  
ISAN exemption/reduction  Exemption:  
Definitive export;  
Definitive disposal or import of electric 
automobiles and hybrid automobiles;  
Disposal of new automobiles below 
MXN 292,552.57.  Federal Law on New 
Automobiles (Official Journal 
of 12 November 2021)  
Quantities updated by Annex 15 
to the Omnibus Tax Resolution 
(Official Journal of 
28 December  2021)  50% exemption:  
Disposal or import of automobiles with 
a value between MXN 292,552.58 
and MXN 370,566.61.  
Tax incentive for 
investment in domestic 
theatrical productions; in 
the editing and publication 
of national literary works; 
visual arts; dance; music, 
in the specific areas of 
orchestra, instrumental and 
vocal music in concert, and 
jazz. Tax credit against Mex ican income tax, 
equivalent to the invested amount. However, 
it may not exceed 10% of the income tax 
assessment for the fiscal year immediately 
prior to its application.  Article 190 of the Income 
Tax Law (Official Journal 
of 19 November 2010)  
Tax incentive for 
technology R&D projects  Tax credit against income tax equivalent 
to 30% of the investment cost.  Article 202 of the Income 
Tax Law (Official Journal 
of 30 November 2016)  
Tax incentive for 
investment in electric 
vehicle charging equipment  Tax credit equivalent to 30% of the 
investment cost in electric vehicle charging 
equipment.  Article 204 of the Income 
Tax Law (Official Journal 
of 30 November 2016)  
Withholding scheme for 
persons earning income 
through digital platforms.  A lower  withholding rate will apply to 
taxpayers who sell goods or provide services 
through the Internet. The amount withheld 
may be provisional or definitive, as 
appropriate.  Articles 113 -A, 113 -B 
and 113-C of the Income 
Tax Law (Official Journal 
of 9 December 2 019) 
Tax incentive for the import 
or disposal of fruit or 
vegetable juices, nectars 
and concentrates and drink 
products that may contain 
milk. 100% VAT credit on the import or disposal of 
the stated products.  Decree compiling various tax 
benefits and establishing 
measures to simplify 
administrative procedures  
(Official Journal of 
26 December  2013)  
Incentives granted under 
the Federal Revenue Law  Persons engaging in business activities, 
with total annual income of less 
than MXN 60 million, who import or 
purchase, for final consumption, diesel or 
biodiesel or mixtures thereof, to be used 
exclusively as fuel for machinery in general 
(except vehicles)  may credit an amount 
equivalent to the IEPS against the taxpayer's 
income tax assessment for the fiscal year in 
which the fuel is imported or purchased.  Article 16 Federal Revenue 
Law for fiscal year 2022  
(Official Journal of  
12 November 2021)  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Name of programme  Description  Legal instrument  
Persons who import or purchase diesel or 
biodiesel and mixtures thereof for final 
consumption and to be used in agricultural or 
forestry activities, and whose income in the 
previous year has not exceeded 20 times the 
annual value of the UMA may credit an 
amount equivalent to the IEPS against the 
taxpayer's income tax assessment for the 
year in which the fuel is imported or 
purchased, or request the reimbursement of 
the amount.  
Persons who import or purchase diesel or 
biodiesel and mixtures thereof to be used in 
public or private vehicles for the transport of 
passengers, freight or tourists may credit an 
amount equivalent to the IEPS against the 
taxpayer's income tax assessment f or the 
fiscal year in which the fuel is imported or 
purchased.  
Persons who engage exclusively in public and 
private land transport, of freight, passengers 
or tourists, who use the national network of 
toll motorways, and whose total annual 
income is less  than MXN 300 million, may 
credit up to 50% of the total toll charges 
against the taxpayer's income tax 
assessment for the fiscal year in which the 
expenses are incurred.  
The IEPS paid on the purchase and 
importation of fossil fuels, according to their 
carbon content and provided that they are 
not combusted, may be credited against the 
taxpayer's income tax assessment for the 
fiscal year in which the fuel is purchased.  
Holders of mining concessions and 
allocations, for the sale or disposal of 
minerals and substances specified in the 
Mining Law, whose annual gross income does 
not exceed MXN 50 million, may deduct the 
special levy on mining activities paid from 
their income tax.  
Natural and legal persons, resident in 
Mexico, who dispose of boo ks, newspapers 
and magazines may obtain an additional 
income tax deduction for an amount 
equivalent to 8% of the acquisition cost, 
provided that this activity accounts for at 
least 90% of their total income and does not 
exceed MXN 6 million.  
Tax incentiv e for 
automobile fuel in 
connection with the IEPS  Persons who import and dispose of 
automobile fuel may qualify for a reduction of 
the IEPS payable on the fuel.  Decree establishing fiscal 
incentives related to the special 
tax on production and services 
payable on the fuels listed 
(Official Journal of 
27 December  2016 and 
subsequent amendments 
thereto).  
Source:  WTO Secretariat . 
3.112.   In addition to tax incentives, Mexico has other direct support, credit and guarantee 
programmes for SMEs and MSMEs, and to promote competitiveness and experimental R&D. It also 
has programmes specific to particular sectors such as agriculture, forestry, tourism and the film 
industry (Table 3.18).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.113.   Nacional Financiera (NAFIN), which has been operating for several decades as a 
development bank, continues to offer support to boost growth in strategic sectors, by facilitating 
MSMEs' access credit, with guarantee schemes and financing programmes, in coordination with 
commercial banks.  NAFIN also promotes the financial inclusion of wo men and all regions of the 
country.127 
Table 3.18 Main support programmes, 2017 -22 
Entity  Programme  Type of support (validity)  
Ministry of the 
Economy (SE)  
 National financing programme for 
microenterprises and rural women 
(PRONAFIM)  Credit (until 2019)  
Financial Support Programme for Family 
Microenterprises, Crédito a la Palabra  Financial support (until 2021)  
Microcredit Programme for Well -being  Support through funding, and 
advice and training  
National business fund  Financial support (until 2019)  
National Guarantees Scheme ( México 
Emprende  Trust Fund)  Guarantee (until 2020)  
Software Industry Development 
Programme (PROSOFT)  Financial  support (until 2020)  
Industrial Productivity and Competitiveness 
Programme (PPCI).  Financial support  
Programme Promoting the Social 
Economy  Financial support (until 2021)  
National Science and 
Technology Council 
(CONACYT)  Programme to Encourage Research, 
Technological Development and Innovation 
(PEI) Financial support (until 2017)  
Technological innovation to increase the 
productivity of firms (2017 -18) Economic support (until 2018)  
Regional promotion of scientific, 
technological and innovation capacity 
(2017, 2018, 2019, 2020)  Economic support (until 2020)  
Promotion of scientific and technological 
infrastructure (2017, 2018)  Economic support (until 2018)  
Sectoral strengthening of scientific, 
technological and innovation skills (2017, 
2018, 2019, 2020)  Economic support (until 2020)  
Support for scientific, technological and 
innovation activities (2018, 2019, 2020)  Economic support (until 2020)  
National strategic programmes for science, 
technology and creating links with the 
social, public and private sector (2021 -22) Economic support  
Tax Incentive for Technology Research and 
Development (EFIDT)  Tax credits against income tax 
(until 2017)  
CONACYT Institutional Fund  Economic support (until 2020)  
Institutional Fund to Promote Science, 
Technology and Innovation (FORDECYT)  Economic support (until 2020)  
Mixed Funds (FOMIX)  Economic support (until 2020)  
International Cooperation Fund for Science 
and Technology (FONCICYT)  Economic support (until 2020)  
Sectoral Funds ( FOSEC)  Economic support (until 2020)  
Ministry of Agriculture, 
Livestock, Rural 
Development, Fisheries 
and Food (SAGARPA) 
(currently SADER)  Programme to support women 
entrepreneurs' productivity (PROMETE)  (until 2017)  
Programme to support young 
entrepreneurs in agriculture  (until 2017)  
Productivity and agri -food competitiveness 
programme  (until 2019)  
SADER  DICONSA, S.A. de C.V.  Rural supply 
programm e Food 
LICONSA, S.A. de C.V.  Programme for 
supplying milk  Food 
Fertilizers Programme for Well -being  Fertilizers  
Programme for the Promotion of 
Agriculture, Livestock, Fisheries and 
Aquaculture  Financial support  
 
127 NAFIN. Viewed at: https://nafin.com/portalnf/content/financiamiento . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Entity  Programme  Type of support (validity)  
Guaranteed Prices Programme for Basic 
Foods  Funding  
Production for Well -being Programme  Funding  
Agri-food Health and Safety Programme  Technical support  
Crédito Ganadero a la Palabra  (livestock 
farming credit at a word) programme  Support in kind  
Marketing support programme  Funding (until 2020)  
National Forestry 
Commission  Support Programme for Sustainable 
Forestry Development  Financial support  
Ministry of the Navy 
(SEMAR)  Port construction projects (2021)  Financial support for construction 
and maintenance.  
Ministry of Tourism  Regional Sustainable Tourism Development 
and Magical Towns Programme 
(PRODERMAGICO)  Means of recourse for tourism 
infrastructure  
(until 2018)  
Promotion of Mexico as a tourist 
destination  Technical support  
 
Encouraging and promoting investment in 
the tourism sector  Technical support  
Tourism infrastructure projects  Technical support  
Mass passenger transport project  Technical assistance (until 2018)  
Nacional Financiera 
(NAFIN)  
 SME Loans  Guarantee  
Loans for the Crecer Juntos  programme  Guarantee (until 2021)  
Financing of transport MSMEs  Guarantee  
Financing for technical modernization  Guarantee (until 2017)  
Women -led SMEs  Guarantee (until 2021)  
Loans for the construction industry  Guarantee (until January 2022)  
Green Business Loan  Guarantee  
Green Individual Loan  Guarantee (until 2020)  
C-solar funding  Guarantee  
Financing for the leather and footwear 
sector  Guarantee (until 2021)  
Financing for automobile dealers  Guarantee (until 2019)  
Support for the textiles, clothing and 
fashion industry  Guarantee (until 2021)  
RIF Women ( Crezcamos juntas ) Guarantee  
RIF youth loans  Guarantee (until 2021)  
RIF consumption programme  Guarantee (until 2018)  
Security Guarantee  Guarantee  
Production Chains Programme  Factoring  
Economic recovery - federal govern ment 
suppliers' contract  Guarantee  
Economic recovery - Sectoral Development  Guarantee  
Economic recovery - Financial Inclusion  Guarantee (until 2021)  
Franchises  Guarantee (until 2019)  
Impulso + Hoteles  (hotel sector stimulus)  Guarantee (until 2021)  
Impulso + Estados  (state -level stimulus)  Guarantee  
Petrol Station Supplier Contracts  Guarantee (until 2021)  
T-MEC toolkit  Guarantee (until 2021)  
Ven a comer logo to promote Mexican 
gastronomy  Guarantee (until 2022 (February))  
SME Youth Loans  Guarantee (until 2021)  
Credisuministros  + Empresas  (value chain 
stimulus)  Guarantee  
Source:  Catálogo de Programas Sociales Federales Susceptibles de Vinculación con la CEAV - 2021. 
Viewed  at: 
https://www.gob.mx/cms/uploads/attachment/file/669248/Cat_logo_Programas_Sociales_2021.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.3.2   Technical regulations and standards  
3.114.   The Federa l Law on Metrology and Standardization (LFMN)128 regulated the national quality 
system until mid -2020, when it was repealed and replaced by the Law on Quality Infrastructure 
(LIC).129 The drafting of the regulations implementing the LIC has not yet been fina lized; therefore 
the LFMN regulations130 continue to be used, unless they conflict with the LIC. The purpose of this 
Law is to set and develop the basis for industrial policy within the National Quality Infrastructure 
System, through standardization, harmon ization, accreditation, conformity assessment and 
metrology activities, to promote quality in the production of goods and services, with a view to 
expanding productive capacity, achieving continuous improvement in value chains, promoting 
international trad e and protecting legitimate public interest objectives.131 In addition to the LIC 
and the Guide to the structuring and drafting of Standards, there are other laws that also influence 
standardization procedures.132 
3.115.   The National Commission for Quality Infrastr ucture (CNIC) (formerly National 
Standardization Commission) and the Directorate -General of Standards (DGN) of the Ministry of 
the Economy (SE) are responsible for applying the LIC. The SE remains the contact point for the 
TBT Agreement.133 
3.116.   The CNIC manages  and coordinates standardization, harmonization, conformity 
assessment and metrology activities; evaluates requests for the establishment of national advisory 
committees on standardization (responsible for preparing Mexican Official Standards (NOMs)) 
propo sed by ministries (the standardization authorities); and, on an annual basis, reviews, 
analyses and approves the National Quality Infrastructure Programme (formerly the National 
Standardization Programme) and its Supplement.134 In 2021, the SE took over as the permanent 
chair of the CNIC.  
3.117.   Mexico issues NOMs (technical regulations) and Mexican Standards (NMXs) (specifications 
or standards). For technical regulations relating to telecommunications and broadcasting, the 
Federal Telecommunications Institute (IFT ) issues "Technical Provisions" ( Disposiciones Técnicas ), 
which, like NOMs, are published in the Official Journal to make them binding.  
3.118.   There has been no change to the procedure for preparing, issuing and reviewing NOMs 
since the previous review. In accord ance with the LIC, NOMs must be based, in whole or in part, 
on international standards, except where these are not appropriate or effective in achieving the 
desired public interest objectives (Chart 3.8). In the event of an emergency that affects the publi c 
interest, the competent Standardization Authority may issue the NOM directly and inform the 
CNIC. Emergency NOMs remain valid for a maximum of six months and may be renewed once for 
a further six months.135 
 
128 Federal Law on Metrology and Standardization (Official Journal of 1 July 1992, latest amendment 
on 18 December 2015).  
129 Law on Quality Infrastructure (Official Journal of 1 July 2020).  
130 Regulations impl ementing the Federal Law on Metrology and Standardization (Official  Journal 
of 14 January  1999; latest amendment on 28  November  2012).  
131 Information provided by the authorities.  
132 These can include: the Federal Consumer Protection Law, the General Law on H ealth, the General 
Law on Ecological Balance and Environmental Protection, the Federal Telecommunications and Broadcasting 
Law, and the Federal Labour Law.  
133 Viewed at: http://tbtims.wto .org/en/NationalEnquiryPoints/Search . 
134 National Quality Infrastructure Programme 2021 (Official Journal of 25 February 2021).  
135 Emergencies are considered to be instances in which steps must be taken to prevent imminent 
injury, or to mitigate or remove ex isting injury to any legitimate public interest objective (Article 32 of 
the LIC). WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Chart 3.8 NOM preparation procedure  
 
Source:  Information provided by the authorities.  
3.119.   The SE has developed a catalogue of NOMs and NMXs in force or rescinded, as well as 
draft NOMs in public consultation.136 This catalogue will be part of the new Comprehensive 
Technology Platform for Quality Infrastructure (PLATIICA), which is being developed by the SE to 
provide information to the entire National Quality Infrastructure System.  
3.120.   NOMs must be reviewed by the St andardization Authority within five years of their 
publication in the Official Journal or their latest amendment. This review must be completed 
within  60 days of the end of the corresponding five -year period. The outcome of this review is 
notified to the C NIC Executive Secretariat. If the Standardization Authority does not review the 
NOM or notify the review report, the CNIC must conduct this review and could order the rescission 
of the NOM. In the case of the Technical Provisions, the IFT carries out the r eview five years after 
their entry into force.  
3.121.   Over the period 2017 -21, 212 draft NOMs were published in the Official  Journal, of 
which  84 became NOMs and 1 was rescinded. During the same period, 174 NOMS were published 
in the Official Journal, of which 20  were based on international standards (16 partially and 4  fully). 
During 2017 -21, 455 NOMs were reviewed, 81 were amended and 6 removed.137 
3.122.   During 2017 -21, Mexico notified the WTO Committee on Technical Barriers to Trade 
of 168 technical regulations relati ng mainly to the protection of human health and the 
environment, and consumer protection and information (labelling). In addition, Mexico notified the 
amendment of  238 previously notified technical regulations.138 In 2017 -21, on four occasions 
certain Membe rs posed questions in the TBT Committee about NOMs related to conformity 
assessment procedures for cheese and curd (HS 0406); measures restricting the sale of food and 
 
136 Information from SINEC. Viewed at: 
https://www.sinec.gob.mx/SINEC/Vista/Normalizaci on/BusquedaNormas.xhtml . 
137 Information provided by the authorities.  
138 Information from the WTO. Viewed at: http://tbtims.wto.org . 
WT/TPR/S/429 /Rev.1  • Mexico  
 
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  beverages to children; health -related advertising; and labelling for pre -packaged food a nd 
non-alcoholic beverages.139 
3.123.   NOMs  are mandatory for both domestic and imported products. Importers must 
demonstrate, at the point of entry into the country, that the goods comply with the NOM in 
question. In the case of NOMs relating to marking and labelling, the importer has several opti ons 
for checking compliance with NOMs upon customs clearance: (a) submit the goods with the 
commercial information labels required by the NOM, so that the authorities can verify that they 
comply with the requirements; (b) submit the goods with the labels r equired by the NOM and a 
copy of the "certificate of conformity" issued by an accredited inspection unit. In the case of NOMs 
issued on the basis of the IFT's Technical Regulations, the provisions of the conformity assessment 
procedures published in the Of ficial Journal shall be followed, in addition to what, in particular, 
each of the Technical Provisions may indicate.140 When imported products do not comply with the 
requirements of a NOM relating to marking and labelling, the customs authorities shall proc eed to 
detain the goods and set a time limit for the importer to make the necessary corrections. In the 
event of failure to comply with product safety NOMs, the customs authorities shall proceed to the 
precautionary seizure of the goods, which may be trans ferred to the tax authorities.141 
3.124.   In 2021, imports corresponding to 2,483 tariff lines had to comply with a NOM.142 The 
NOMs applied mainly to textile articles, and machinery and mechanical appliances, followed by 
prepared foodstuffs, chemical products and m etals (Chart 3.9). 
Chart 3.9 NOMs by HS section, 2021  
(Number of tariff lines)  
 
Source:  WTO Secretariat calculations, on the basis of data provided by the authorities.  
3.125.   NMXs  or standards are generally voluntary, although they may serve as a reference for the 
correct application or preparation of a NOM. The procedure for preparing NMXs or standards is 
very similar to that of NOMs (Chart 3.10). Both NMXs or standards and NOMs m ust be registered 
with the National Quality Infrastructure Programme or in the Supplement thereto, and must be 
 
139 Information from the WTO. Viewed at: 
https://tradeconcerns.wto.org/es/stcs?searchParameterDomainIds=1&searchParameterSubjectMembers=C484
&searchParameterYearsRange=2017%2C2021 . 
140 In this case, the "Telecommunications and Broadcasting Conformity Assessment Procedure" (Official 
Journal of 25 Feb ruary 2020) is followed in order to obtain a certificate of conformity.  
141 Information provided by the authorities.  
142 Online information. Viewed at: https://www.snice.gob.mx/cs/avi/snice/n.l igie.2020.html . 
6888
19199
5156
6952
144840
70
44
6152372
5384
9152
050100150200250300350400450500550600650700750800850900
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20HS section:
1 -Live animals
2 -Vegetable products
3 -Fats and oils
4 -Prepared foodstuffs
5 -Mineral products
6 -Chemical products
7 -Plastics
8 -Skins and leather
9 -Wood
10 -Paper or paperboard
11 -Textile articles
12 -Footwear
13 -Articles of stone
14 -Pearls, precious metals
15 -Base metals
16 -Machinery and mechanical appliances
17 -Transport equipment
18 -Instruments
19 -Arms and ammunitions
20 -Miscellaneous manufactured articlesWT/TPR/S/429 /Rev.1  • Mexico  
 
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  based on international standards, except where this is not effective or appropriate. In addition, 
under no circumstances may NMXs or standards co ntain specifications, characteristics, values, 
parameters or requirements that are less stringent than those set out in a NOM.  
Chart 3.10 NMX preparation procedure  
Source:  Information provided by the authori ties. 
3.126.   NMXs or standards are developed by a national standardization body143 or by the 
Standardization Authorities. Pursuant to the LIC, it is the responsibility of the Technical 
Standardization Committee (CTE) to analyse the draft NMX or standard; if approv ed, the SE is 
notified so that it can publish an extract on PLATIICA, and a public consultation is initiated, lasting 
at least 60  calendar days starting from the calendar day following its publication on the Platform. 
When the DGN has prepared the NMX or s tandard proposal, the entire draft is published on 
PLATIICA. Once the comments have been received, the CTE decides which ones will be included 
and which ones will not, and informs those who submitted comments that were not included. Once 
the NMX or standar d has been finalized, the SE publishes it on the Platform, which is in the 
process of being developed.144 
3.127.   The national standardization body issuing an NMX or standard must review it at least every 
five years after its publication or latest amendment. The CN IC's Executive Secretariat must be 
notified of the outcome of the review within 60 days of the end of the corresponding five -year 
period. The SE publishes the outcome of the review on the Platform. The CNIC may order the 
rescission of the standard if it is  not reviewed.  
3.128.   Conformity assessment procedures are prepared by the Standardization Authorities. In 
accordance with the LIC, these procedures, as with the NOMs, must be based on international 
standards, except where these are not appropriate or effective i n achieving the public interest 
objectives pursued by the State, and each one that contains the conformity assessment procedure 
required to determine compliance must be included in the NOMs. The IFT is the authority that 
 
143 The registered National Standardization Bodies (ONEs) are: Mexican Standardization Society S.C. 
(NORMEX), Mexican Institute for Standardization and Certification A.C. (IMNC), Standardization and 
Certification Association A.C. (ANCE), N ational Textile Standardization Institute A.C. (INNTEX), National 
Standardization and Certification Body for Construction and Building S.C. (ONNCCE), Electronic Standardization 
and Certification S.C. (NYCE), Milk and Milk Products Quality Promotion Council , A.C. (COFOCALEC), National 
Chamber of the Iron and Steel Industry (CANACERO) and Underwriters Laboratories, Inc. (UL).  
144 The current platform can be viewed at: 
https: //www.sinec.gob.mx/SINEC/Vista/Normalizacion/BusquedaNormas.xhtml . 
WT/TPR/S/429 /Rev.1  • Mexico  
 
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  issues telecommunications and broad casting conformity assessment procedures, pursuant to the 
Federal Telecommunications and Broadcasting Law.  
3.129.   Conformity assessment is generally carried out by accredited and approved conformity 
assessment bodies. However, in the absence of adequate infrastru cture in the private sector, the 
Standardization Authorities can carry this out. In order to operate as an accreditation body, 
authorization from the SE is required, subject to a favourable opinion from the CNIC. An 
accreditation entity may operate in one or more areas, sectors or branches. Also, only bodies that 
are accredited with an accreditation entity may operate as conformity assessment bodies. 
Conformity assessment bodies can operate as: testing, measurement or calibration laboratories; 
inspection un its; or certification bodies. The SE keeps a list of accreditation entities and conformity 
assessment bodies, which is published on PLATIICA, with the rates and prices charged (Articles 44 
and 45 of the LIC). With regard to telecommunications and broadcast ing conformity assessment, 
the IFT has the power to authorize third parties to issue conformity assessment certification, to 
accredit experts and verification units, and to establish and operate testing laboratories or to 
authorize third parties to do so. The IFT has issued various provisions on telecommunications and 
broadcasting conformity assessment.145 
3.130.   In 2021, Mexico had Mutual Recognition Agreements (MRAs) mainly in the areas of 
electrical engineering, energy and medical devices, with entities in Belgi um; Canada; Denmark; 
China; the Republic of Korea; Colombia; the United States; Finland; Hong Kong, China; Japan; 
Norway; Thailand; and the European Union.146 
3.3.3   Sanitary and phytosanitary measures  
3.131.   Procedures for preparing  sanitary and phytosanitary (SPS) measures are stipulated in the 
2020 LIC, which repealed the 1992 Federal Law on Metrology and Standardization, as well as 
specific laws on the subject. Some of these laws were amended during the review period, for 
example, the Federal Law on Plant Health, the Federal Law on Animal Health and the Law on 
Health. However, as in the case of the LIC147, some of the regulations necessary for the 
implementation of the amendments have not been updated (Table  3.19). The regulatory 
authorities publish lists of the products subject to animal health requirements, as well as the 
different requirements, on their websites. The legal basis for these lists are Decisions ("modules"), 
which are modified to take into account changes in the plant and animal health situation.  
Table 3.19 Main legal instruments that regulate the sanitary and phytosanitary 
system,  2021  
Legislation  Publication in the Official 
Journal/latest amendment 
published in the Official Journal  
Law on Quality Infrastructure  1 July 2020  
Regulations implementing the Federal Law on Metrology and 
Standardization  28 November 2012  
Federal Law on Plant Health  26 December 2017  
Regulations implementing the Federal Law on Plant Health  15 July 2016  
Federal Law on Animal Health  16 February 2018  
Regulations implementing the Federal Law on Animal Health  21 May 2012  
General Law on Health  19 February 2021  
Regulations on Sanitary Control of Products and Services  12 February 2016  
Regulations for Health Inputs  21 May 2021  
 
145 Guidelines for the accreditation, authorization, designation and recognition of testing laboratories 
(Official Journal of 7 March 2016); Guidelines for the accreditation of telecommunicat ions and broadcasting 
experts (Official Journal of 20 February 2017, latest amendment on 19 June 2018);Guidelines for the 
accreditation and authorization of verification units (Official Journal of 6 February 2020); Telecommunications 
and Broadcasting Confo rmity Assessment Procedure (Official Journal of 25 February 2020 and its amendment 
of 27 December 2021); Guidelines for the accreditation and authorization of telecommunications and 
broadcasting certification bodies (Official Journal of 8 July 2021) (which  entered into force in July 2022); and 
Guidelines for the authorization of telecommunications and broadcasting accreditation bodies (Official Journal 
of 9 July 2021) (which entered into force in July 2022).  
146 Viewed at: https://www.snice.gob.mx/cs/avi/snice/noms.acuerdosmutuos.html . 
147 In January 2022, the Executive Branch had not yet issued the regulations implementing the LIC, and 
therefore the Regulations implementing the Feder al Law on Metrology and Standardization continued to be 
used, insofar as no conflict arises with the LIC.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Legislation  Publication in the Official 
Journal/latest amendment 
published in the Official Journal  
General Law on Sustainable Forestry Development (LGDFS)  13 April 2020  
Regulations implementing the General Law on Sustainable Forestry 
Development  9 December 2020  
Law on Biosafety of Genetically Modified Organis ms 6 November 2020  
Regulations implementing the Law on Biosafety of Genetically 
Modified Organisms  6 March 2009  
General Law on Sustainable Fisheries and Aquaculture  4 June 2018  
Law on Organic Products  7 February 2007  
Regulations implementing the Law on Organic Products  8 April 2010  
Source:  WTO Secretariat, on the basis of information provided by the Mexican authorities.  
3.132.   The bodies responsible for drafting and implementing SPS measures remain the same as 
in 2017 (Table 3.20). The Directorate -General of Standards of the SE is the national enquiry point 
designated by Mexico in the framework of the WTO Agreement on the Application of Sanitary and 
Phytosanitary Measures (SPS Agreement).148 The national agricultural health, sa fety and quality 
policy seeks to maintain and improve agri -food health and safety conditions, through surveillance 
systems to reduce the risk of pests being introduced, epidemics and contamination, by controlling 
and eradicating existing ones, and by adopt ing good practices in the production and primary 
processing of products.  
Table 3.20 Institutions responsible for the sanitary system, 2022  
Institution  Function  
National Health, Food Safety and Agri -food 
Quality Service (SENASICA) of  SADER  Enforces and monitors compliance with provisions on agri -food 
health, safety and quality for plant, animal, fishery and 
aquaculture products and by -products.  
Prepares and issues NOMs, decisions and other legal provisions . 
Determines requirements, quarantine regulations and sanitary 
safety measures.  
Regulates and promotes the implementation and certification of 
risk reduction systems.  
Federal Commission for Protection against 
Health Risks (COFEPRIS) of the  SSA Enforces, oversees and certifies compliance with health 
provisions (for the production, distribution, import and export of 
products for human use and consumption).  
Prepares and issues NOMs.  
SEMARNAT  Prepares and issues NOMs on forestry and land matters.  
Issues phytosanitary documents needed for the movement, 
import or export of regulated forestry products and by -products.  
Interministerial  Commission on Biosafety 
and Genetically Modified Organisms 
(CIBIOGEM)  Coordinates policy on the production, consumption, import, 
export and movement of genetically modified organisms (GMOs).  
Source:  WTO Secretariat.  
3.133.   In Mexico, SPS measures are establishe d by means of a NOM. The procedure for 
preparing  NOMs on plant and animal health, fisheries, biosafety and agri -food safety matters is the 
same as that used for other NOMs. The objective of these is to prevent, control and combat pests 
and diseases that af fect plant, animal, aquaculture and fishery species. Each unit prepares the 
preliminary drafts; and the respective subcommittees (which comprise the National Advisory 
Committee on Agri -food Standardization (CCNNA) of SADER or the National Advisory Committe e 
on Environmental and Natural Resource Standardization (COMANART) of SERMANAT) carry out the 
relevant reviews and amendments, respond to comments and approve draft NOMs and, if it is 
deemed necessary, submit them for consideration to the CCNNA or COMANART . Interested parties 
may also submit proposals for preliminary drafts of NOMs. In these cases, the CCNNA carries out 
the appropriate evaluation and submits the preliminary draft for consideration to the 
subcommittee. The NOMs are reviewed every five years or earlier, in order to update them in line 
with scientific and technological developments and animal health campaigns. In urgent cases, an 
emergency NOM can be prepared directly without the need for a preliminary draft or a draft. 
Emergency NOMs are valid  for six months and may be renewed for a further six months.  
 
148 WTO online information. Viewed at: 
http://spsims.wto.org/es/EnquiryPointsNotificationAuthorities/Search?countryCode=C484&filter= . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.134.   According to the authorities, plant and animal health requirements are based on scientific 
principles and/or international recommendations149 and, as appropriate, on a risk analysis based 
on the phytosanitary and/or animal health situation in the geographical areas concerned, as well 
as of adjoining areas and areas with which there are trade flows.  
3.135.   In Mexico, phytosanitary, animal health and aq uacultural health requirements for imports 
are published in Decisions and/or NOMs, through the Phytosanitary Requirements Module, the 
Animal Health Requirements Module and the Aquacultural Health Requirements Module.150 The 
requirements for the import of ph ytosanitary, animal health and aquaculture and fishery goods are 
available online under the three aforementioned SENASICA Modules.151 These Modules consist of a 
catalogue of documents, called phytosanitary, animal health and aquaculture and fisheries 
requir ement sheets, drawn up to prevent the entry of animal, plant and aquaculture and fishery 
diseases and pests into Mexico.152 In the event of a plant or animal health emergency that poses a 
risk to plant or animal health in the country, SENASICA updates or mo difies the risk mitigation 
measures under the relevant Module, which enter into force immediately. In addition, in the event 
of an animal health emergency, the National Animal Health Emergency Mechanism (DINESA), 
which tackles diseases and coordinates thos e involved in order to avoid further damage to 
livestock and, as the case may be, to public health.153 Goods subject to phytosanitary or animal 
health requirements must also come from authorized countries that have sanitary services 
recognized by  SADER.154 
3.136.   In 2021, Mexico had 74 NOMs relating to animal and plant health in force, 29 of which 
concerned animal health and aquaculture, 32 plant health, 9 agri -food safety and 4 forest 
health.155 Between 2017 and 2021, Mexico notified 91 (regular) SPS measures to the  WTO, of 
which none were urgent. Products included rice and various fresh fruits, grains, plants and seeds. 
Mexico also notified amendments to 64 SPS measures that had already been notified. In the same 
period, six specific trade concerns on measures adopt ed by Mexico, affecting imports of chilies, 
shrimps, pork products/swine meat (two instances), hibiscus flowers and casein products were 
submitted to the SPS Committee.156 
3.137.   At the point of entry into the country, before customs clearance, importers of agricu ltural, 
vegetable, aquaculture and fishery products must demonstrate to the DGIF of SENASICA, or in the 
case of forestry products the Federal Environmental Protection Agency (PROFEPA) SERMANAT, that 
the imported goods comply with the requirements indicated  under the corresponding Modules.157 
Where import requirements for products of animal or plant origin are not specified in the Modules 
 
149 Mexico is a member of the Codex Alimentarius Commission (FAO/WHO) and the World Organization 
for Animal Health (WOAH), and is a signatory of the International Pla nt Protection Convention (IPPC). It is also 
a member of regional bodies such as the North American Plant Protection Organization (NAPPO) and the 
International Regional Organization for Plant and Animal Health (OIRSA).  
150 Decision establishing the module of phytosanitary requirements for the import of goods regulated by 
the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food  with respect to plant health 
(Official Journal of 7 February 2012), Decision establishing which goods imports are regulated by the Ministry 
of Agriculture and Rural Development and regulating the issuing of certificates of origin for coffee exports 
(Official Journal of 26 December 2020) and Decision establishing the module of sanitary requirements for the 
import of aq uatic species, their products and by -products, and biological, chemical, pharmaceutical or food 
products for use or consumption by such species (Official Journal of 25 May 2012).  
151 Module  of requirements  for the import  of animal  health  goods.  Viewed  at: https://sistemasssl.senasic
a.gob.mx/mcrz/moduloConsulta.jsf ; Module  of phytosanitary  requirements  for the import  of goods  of plant orig
in. Viewed  at: https://www.gob.mx/senasica/documentos/modulo -de-requisitos -fitosanitario ; and Module of 
phytosanitary requirements for the import of aquaculture and fishery goods. Viewed at: 
https://www.gob.mx/senasica/documentos/modulo -de-consulta -de-requisitos -de-sanidad -acuicola -para-
importacion . 
152 This replaced the previous National Syst em for the Consultation of Animal Health Requirements 
(SINORH). Online information viewed at: https://sistemasssl.senasica.gob.mx/mcrz/moduloConsulta.jsf . 
153 Information provided by the authorities.  
154 The NOMs relating to forestry products are available at: 
https://www.ccmss.org.mx/acervo/legislacion -forestal -mexicana -leyes-y-normas -federales . 
155 Information provided by the authorities.  
156 WTO information. Viewed at: 
https://tradeconcerns.wto.org/es/stcs?searchParameterDomainIds=2&searchParameterSubjectMembers=C484
&search ParameterYearsRange=2017%2C2021 . 
157 Wrapping or packaging material made from wood or of plant origin, containing imported goods, shall 
be subject to visual phytosanitary inspection by the DGIF, in order to determine the prophylactic measures 
required.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  on animal health or plant health import requirements, or in the case of aquaculture or fishery 
goods, are not specified in  a NOM or in a Decision, SENASICA must be contacted, or, in the case of 
forestry products, SEMARNAT.158 To verify compliance with the requirements, a documentary 
inspection (through the VUCEM) and physical inspection are carried out. Despite the fact that t he 
document review is digital, importers must submit the original documents when the physical 
inspection is carried out.159 If the requirements are met, the competent authority issues the 
relevant verification certificate or record. The interested party may  request that this be sent 
electronically (Table 3.21). In the event of a pest or disease that threatens the health of plants, 
animals or aquaculture and fishery species, import sanitary certificates may be rescinded and the 
necessary safety measures will be taken.  
3.138.   For products that do not require a prior import permit, a sanitary certificate issued by the 
competent authority in the country of origin must be submitted and the Ministry of Health (SSA) 
must be notified of the entry and destination of the good s. 
Table 3.21 Import certificates, 2021  
Products  Institution  Document  
Products of plant origin  SENASICA  Phytosanitary Import (or Export) Certificate  
Products of animal origin  SENASICA  Animal Health Import Certificate  
Products of aquaculture or 
fisheries origin  SENASICA  Aquaculture Health Import Certificate  
Wildlife species and their 
products, and forestry 
products  SEMARNAT/ 
PROFEPA  Verification Record modality D: hazardous materials and 
waste for the purpose of trade and industrialization  
Verification Record modality E: hazardous materials and 
waste for purposes that are different from trade and 
industrialization  
Products posing a risk to 
human healtha COFEPRIS  Prior sanitary import permit  
GMOs COFEPRIS  Prior sanitary import permit  
a For example, medicines; foodstuffs; beverages; perfumery, cosmetic and cleaning products; 
tobacco; pesticides; plant nutrients; biotechnology products; raw materials and additives used to 
prepare the aforementioned products; substances that are toxic or hazardous to health; and food 
supplements.  
Source:  WTO Secretariat.  
3.139.   Most goods subject to sanitary regulations also require non -automatic import licences 
(prior permits) ( Section 3.1.6). Thus, complianc e with the phytosanitary and animal health 
requirements does not exempt the importer from the obligation to obtain the permits required by 
other Ministries.  
3.140.   The Interministerial Commission on Biosafety and Genetically Modified Organisms 
(CIBIOGEM) is respo nsible for establishing policies on biotechnology safety and the safe use 
of GMOs.160 These activities are regulated by the Law on Biosafety of GMOs and its implementing 
regulations. The importation of GMOs for experimental release into the environment, for  pilot 
programmes or for commercial use, requires a permit issued by SADER and SEMARNAT, after a 
risk analysis has been conducted (Article 66 of the Law on Biosafety of GMOs). Subsequent 
imports do not require new permits, provided they concern the same GM O and the same area of 
release into the environment (Article 58 of the Law on Biosafety of GMOs).  
3.141.   The marketing, importing and processing of GMOs intended for human use or consumption 
require authorization from COFEPRIS of the SSA. This Commission carries out a risk assessment, 
in accordance with scientific protocols, to determine the safety of GMOs and their products for 
human consumption. GMOs or products containing GMOs, which are intended for direct human 
 
158 Online information from SENASICA. Viewed at: https://www.gob.mx/tramites/f icha/solicitud -de-
requisitos -fitosanitarios -que-no-se-encuentren -en-el-modulo -de-requisitos -fitosanitarios -para-la-
importacion/SENASICA4836 . 
159 Information provided by the authorities.  
160 The CIBIOGEM is composed of the Ministers of SADER, SEMARNAT, the SSA,  the Ministry of Public 
Education (SEP), the SHCP and the SE, as well as the head of the National Science and Technology Council 
(CONACYT) (Online information. Viewed at: https://www.gob.mx/senasica/acciones -y-programas/comision -
intersecretarial -de-bioseguridad -y-organismos -geneticamente -modificados  and 
http://conacyt.gob.mx/cibiogem/index.php/cibiogem/acerca -de-la-cibiogem ). WT/TPR/S/429 /Rev.1  • Mexico  
 
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  consumption, must bear an explicit reference to GMOs and the label must include their food 
composition or nutritional properties, where these differ significantly from conventional products. 
SADER issues  NOMs specifying labelling for seeds or other material intended for sowing, cultivation 
and agricultu ral production, containing GMOs (Article 101 of the Law on Biosafety of Genetically 
Modified Organisms).  
3.142.   In order to ensure safety in food production processes, Mexico uses NOMs and NMXs that 
refer to various tools, such as the Hazard Analysis and Critical  Control Points (HACCP) system, 
which specify the minimum requirements for good hygiene practices that must be observed in the 
production process for foods, beverages or food supplements and their raw materials in order to 
avoid contamination throughout th e process.  
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.143.   Mexico's competition policy is governed by the Constitution (Article 28), the Federal Law 
on Economic Competition (LFCE)161 and, in the area of telecommunications, the Federal 
Telecommunications and Broadcasting Law (LFTR). To apply the LFCE, regulatory provisions have 
been issued.162 These provisions have not been substantially changed since Mexico's previous 
review in 2017; h owever, new regulatory provisions relating to, for example, the immunity 
programme have been issued.  
3.144.   The competition policy applies to all sectors of the economy and to all economic operators, 
public and private, Mexican and foreign, operating in and outsi de Mexico, as long as operations 
abroad affect competition in the Mexican market.  
3.145.   Monopolies are prohibited in Mexico, although activities reserved to the State do not 
constitute a monopoly ( Section 2.4).163 Nor are sales by producer associations or coopera tives who 
meet certain conditions (i.e. that the products are not essential, they are not sold nationwide, nor 
are they the region's main source of wealth) considered a monopoly.164 
3.146.   Mexico has two authorities that promote and guarantee competition: the Fede ral Economic 
Competition Commission (COFECE) and the Federal Telecommunications Institute (IFT), which are 
autonomous constitutional bodies ( Section 2.1). COFECE is the competition authority for all sectors 
of the economy, except the telecommunications and  broadcasting sectors, in which case the 
competition authority is the IFT, which has the same powers that the COFECE has in other sectors. 
However, although the LFCE determines the specific competencies of each institution, if there was 
a disagreement abou t their competencies, it would be resolved in the Collegiate Circuit Courts on 
administrative matters, specialized in economic competition, broadcasting and 
telecommunications.165 Since 2017, four such cases have been resolved in the courts, three of 
which related to digital markets.166 
3.147.   Both COFECE and the IFT have an Investigating Authority to conduct investigations into 
alleged anticompetitive practices and analyse possible illicit economic mergers. If there are 
indications, the COFECE Technical Secretariat  or the Economic Competition Unit of IFT initiate the 
so-called " procedimiento seguido en forma de juicio ", a trial -like procedure, during which economic 
 
161 Federal Law on Economic Competition (Official Journal of 23 May 2014, latest amendment 
on 20 May 2021).  
162 Regulatory Provisions. Viewed at: https://www.cofece.mx/publicaciones/marco -juridico -y-normativo ; 
and Regulatory Provisions of the LFCE for the telecommunications and broadcasting sectors. Viewed at: 
http://www.ift.org.mx/industria/autoridad -investigadora/documentos -materia -economica . 
163 Article 28 of the Political Constitution of the United Mexican States and Article 6 of the  LFCE.  
164 Articles 7 and 8 of the LFCE.  
165 Article 5 of the LFCE and information provided by the authorities.  
166 COFECE. Viewed at: https://www.cofece.mx/wp -content/uploads/2021/02/art -Uber-cornershop -
03febrero2021.pdf  and https://www.cofece.mx/el -poder -judicial-de-la-federacion -resuelve -que-la-cofece -es-
la-autoridad -competente -para-conocer -de-los-mercados -de-servicios -de-busqueda -en-linea-redes -sociales -y-
de-computo -en-la-nube; and OBSERVACOM news item of 3 March 2021. Viewed at: 
https://www.observacom.org/ift -suspende -investigacion -sobre -mercados -digitales -en-mexico -lo-hara-el-
organismo -de-competencia -econo mica; and information provided by the authorities . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  operators may present evidence against accusations presented by the Investigating Authority.167 A 
plena ry session of the Commissioners decides the matter and, if applicable, issues the resolution 
declaring the practice anticompetitive or the merger unlawful, and imposes the relevant penalty. 
Plenary decisions may be appealed before the courts specializing i n economic competition, 
broadcasting and telecommunications168, although the execution of the order of the Plenary is not 
suspended during the appeal.  
3.148.   Investigations are initiated ex officio  by the Investigating Authorities upon receipt of a 
complaint by a party or following an immunity programme application request. The Executive 
Branch may also request an investigation be initiated, either itself or through the SE or the Federal 
Consumer Protection Agency (PROFECO). Requests from the Executive have "prefer ential 
status",  i.e. are processed more expeditiously.169 
3.149.   In Mexico absolute monopolistic practices (cartels) are proscribed and considered illegal 
per se.170 COFECE and the IFT  have an immunity (clemency) programme through which the 
amount of the fine (which can be up to 10 % of the operator's income) is reduced for those 
companies that are part of a cartel or those individuals involved in a cartel on behalf of a 
company, and who  report it. Various companies or individuals may enter the programme, as the 
number of participants is not limited. However, the percentage by which the fine is reduced 
depends on the order in which the applicants enter the programme. The fine of the first  is reduced 
almost fully, i.e. to the equivalent of 1 UMA.171 The fine of the second would be reduced by 50 %; 
that of the third by 30 %; and the fines of the fourth and subsequent applicants by 20 %.172 
Involvement in a cartel may also be subject to criminal s anctions; however, those who enter the 
immunity programme will have no criminal liability.173 
3.150.   Relative monopolistic practices are penalized only if they are committed by an operator 
who abuses their substantial market power to, inter alia , exclude other age nts or prevent them 
from gaining market access, to create exclusive advantages in favour of third parties, or to impose 
exclusivity or tied or conditional sales contracts.174 A number of criteria, such as market share 
(percentage of sales), the number of cu stomers or productive capacity (the legislation does not 
stipulate thresholds), and whether there are barriers to entry and access to essential inputs, are 
taken into account when determining substantial power. However, relative monopolistic practices 
are not sanctioned if they contribute to improving the efficiency of the economy and consumer 
well-being.175 
3.151.   In general, economic concentrations (merger, acquisition of control or any joint venture) 
conducted in Mexico and outside Mexico (when competition in th e country is affected), and above 
a certain threshold, must be notified and authorized ex ante  by COFECE or the IFT (Box 3.2).176 
Nevertheless, the LFCE exempts certain economic concentrations from the notification 
requirement, even if they exceed the estab lished thresholds. The exceptions are, for example, the 
acquisition of shares that does not change the control of the company or foreign operations that do 
not alter the Mexican company's shareholding structure (Article 93 of the LFCE). Similarly, 
accordin g to the LFTR, provided there is a dominant economic operator in the telecommunications 
and broadcasting sectors, and in order to promote competition and develop viable competitors in 
the long term, IFT authorization is not required for economic concentrat ions between the other 
 
167 COFECE. Viewed at: https://www.cofece.mx/conocenos/secretaria -tecnica -2/procedimientos -
seguido-en-forma -de-juicio . 
168 Information provided by the authorities.  
169 Article 66 of the LFCE; and Guide for the Initiation of Investigations into Monopolistic Practices 
by COFECE.  
170 A cartel is when competing operators agree on practices to fix or manipulat e prices; limit supply; 
divide up markets; coordinate bids in public procurement processes; or exchange information with a view to 
adopting one of the aforementioned practices (Article 53 of the LFCE).  
171 In 2022, the daily value of 1 UMA was fixed at MXN 9 6.22. Viewed at: 
https://www.inegi.org.mx/temas/uma . 
172 Article 103 of the LFCE.  
173 Article 254 bis of the Federal Criminal Code.  
174 Article 56 of the LFCE.  
175 COFECE (2015), Herramientas de competencia económi ca. Viewed at: 
https://www.cofece.mx/cofece/images/documentos_micrositios/herramientascompetenciaeconomica_250815_
vf1.pdf . 
176 Economic mergers are notified to the Technical Secretariat's Directorate -General of Mergers 
(COFECE) or the Directorate -General of Mergers and Concessions in the Economic Competition Unit (IFT).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  concession holders, even if they exceed the established threshold, as long as they meet certain 
requirements.177, 178 Economic mergers may be authorized without conditions or under certain 
conditions to correct possible anticompetitive effects.179 
Box 3.2 Thresholds for notifying economic mergers, 2017 -21 
The price paid by the  buyer exceeds 18  million times the UMA.  
The transaction involves the transfer of at least 35% of the shares (shares, assets or other), and the 
transaction operator has annual assets or sales exceeding 18  million times the UMA, in Mexico.  
The transaction  involves the accumulation of assets or equity of more than 8.4  million times the UMA; and 
economic operators have annual assets or sales (separately or jointly) of more than 48  million times the 
value of the UMA.  
Note:  In 2022, the daily value of 1 UMA w as fixed at MXN  96.22. Viewed at: 
https://www.inegi.org.mx/temas/uma . 
Source:  Article 86 of the LFCE; Guide to COFECE  merger notifications; and information provided by the 
authorities.  
3.152.   Meanwhile, the LFTR states that IFT approval is required for the subscription or divestiture 
of shares or partnership stake in companies holding concessions for telecommunications and 
broadcasting services, provided that this concerns the control of more than 10 % of the equity 
capital (Article 112).  
3.153.   There are also restrictions on horizontal integration in the air transport sector, as an 
airport operator cannot acquire more than 5 % of the ca pital of a Mexican airline (and vice versa ) 
(Article  29 of the Airports Law).  
3.154.   Between 2017 and 2021, COFECE initiated 37 investigations for alleged monopolistic 
practices, and 21 practices were penalized (Table 3.22). In some cases, penalties were imposed 
for collusive practices in the health, energy (sale of gasoline to the public) and services (financial 
services, land transportation services for passengers and domestic air transportation services). 
Some relative monopolistic practices, such as tied sales in the energy sector, were also penalized. 
A total of 699 economic mergers were authorized, 11 of them with conditions in sectors such as 
agri-food and digital platforms. Seven economic mergers were refused in the manufacturing, retail 
and distribution sectors.180 
Table 3.22 COFECE competition data, 2017 -21 
 2017  2018  2019  2020  2021  Total  
Monopolistic practices  
Number of investigations initiated  13 7 6 5 6 37 
Following a complaint  7 3 4 1 2 17 
Ex officio  6 4 2 4 4 20 
Number of investigations concluded 9 11 8 6 5 39 
Number of practices penalized  6 2 6 3 4 21 
For cartels  6 2 4 3 4 19 
For relative monopolistic practices  0 0 2 0 0 2 
Mergers        
Notified  155 183 153 126 166 783 
Authorized  131 172 132 127 137 699 
Authorized with conditions  8 1 0 1 1 11 
Refused  1 3 2 0 1 7 
 
177 The requirements are: (a) that the concentration produces a  reduction in the Dominance Index (ID) 
at the sector level; (b) that, as a result, the economic agent has less than 20 % share in the sector; 
(c) that the dominant economic agent in the sector does not participate in the merger and (d) that the 
concentratio n does not have the effect of diminishing, damaging or impeding free competition.  
178 Ninth Transitory Article of the LFTR.  
179 Article 90 of the LFCE.  
180 Information provided by the authorities.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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   2017  2018  2019  2020  2021  Total  
Amparo (judicial review) 
injunctions       
 
Resolved by the judiciary  409 472 158 51 68 1158 
Dismissed  381 437 103 13 42 976 
Denied  22 27 24 17 13 103 
Granted  6 8 31 21 13 79 
Source:  Information provided by the authorities; and COFECE statistics. Viewed at: 
https://www.cofece.mx/planeacion -y-evaluacion . 
3.155.   Between 2017 and 2021, the IFT initiated eight investigations and imposed penalties in 
one case. It also declared the existence of an economic opera tor with substantial power in the 
restricted audio and television services (pay television) market in various parts of the country.181 
The IFT authorized 21  economic mergers, two with conditions.  
3.3.4.2   Price controls  
3.156.   The Political Constitution of the United Mexican States and the LFCE allow maximum prices 
to be imposed on goods and services deemed "necessary" to the economy and popular 
consumption, in the event of shortages and price increases. However, according to th e authorities, 
prices are regulated only if COFECE or the IFT determine that there is an absence of effective 
competition. Otherwise, even if there are shortages, prices will not be regulated. The SE is 
responsible for setting the maximum price, on the bas is of criteria to prevent shortages. The 
Federal Consumer Protection Agency (PROFECO) shall monitor implementation.182 In the context of 
this review, the authorities indicated that this type of price control has not been implemented.  
3.157.   Also, if COFECE determi nes that there are barriers to access to "essential" inputs or that 
there is no effective competition in a reference market, it may recommend to the sector's 
regulatory body that regulatory measures, such as price or tariff controls, be adopted. In 2020, 
COFECE recommended that tariffs for the transportation of chemicals and petrochemicals by rail be 
regulated ( Section 4.4.2). In the telecommunications and broadcasting sector, if the IFT 
determines that there is a lack of competition in the essential inputs  market, it adopts the relevant 
measures ( Section  4.4.3).  
3.158.   As in 2017, the maximum selling price of medicines and inputs is regulated by the SE, 
except those produced by public pharmaceutical companies, which are regulated by the SHCP. 
When setting prices, the opinion of the Ministry of Health is taken into account.183 The maximum 
selling price is determined on the basis of the international reference price184 and distribution and 
marketing costs in Mexico.185 The price of patented medicines is regulated; howev er, the price of 
over-the-counter medicines (for which no prescription is required) is not controlled.  
3.159.   Electricity tariffs, except for generation, are regulated by the Energy Regulatory 
Commission (CRE). In the case of basic supply tariffs, these are fixed  by distribution area, level of 
demand and voltage level.  
3.160.   Retail prices of petrol, diesel, and liquefied petroleum gas (LPG), as well as the wholesale 
("first -hand") price of natural gas were liberalized in 2017.186 However, on 29  July 2021, as an 
emergency  and transitional measure, the maximum retail price of LPG was reintroduced.187 
 
181 Information provided by the authorities.  
182 Article 28 (third paragraph) of the Constitution and Article 9 of the LFCE.  
183 Article 31 of the General Law on Health (Official Journal of 7 February 1984, latest amendment 
on 1 June 2021).  
184 This is the average ex works price of the six States with the largest marke t share.  
185 Senate information. Viewed at: https://infosen.senado.gob.mx/sgsp/gaceta/64/1/2019 -02-19-
1/assets/documentos/Inic _MORENA_Art.31_Ley_Gral_Salud.pdf . 
186 Information provided by the authorities.  
187 CRE. Viewed at: https://www.gob.mx/cre/documentos/precios -maximos -aplicables -de-gas-
lp?idiom=es . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.3.5   State trading, State -owned enterprises and privatization  
3.161.   In December  2016, Mexico notified the WTO that it had two State -trading enterprises 
according to the definition in Artic le XVII of the GATT  1994.188 These enterprises operate in the 
energy sector, namely Petróleos Mexicanos (PEMEX) and the Federal Electricity Commission (CFE), 
which are considered to be State -owned production enterprises (EPEs). PEMEX and the CFE seek 
to gen erate economic value and profits for the State. In the case of PEMEX, it is also intended to 
maximize oil revenue to contribute to the country's economic development.  
3.162.   PEMEX participates in all the activities of the hydrocarbons sector's production chain.189 
In 2016, Mexico notified the WTO that PEMEX had a monopoly on trade in crude oil and its 
derivatives, natural gas and other products. However, the same notification indicates that the 
State monopoly on trade was eliminated for LPG and for petrol and diese l.190 In 2022, PEMEX and 
some  40 private operators, with the permission of the Ministry of Energy (SENER), import and 
export hydrocarbons and petroleum products.191 However, PEMEX is still the most important 
operator. Until  2017, the price of some petroleum products was controlled ( Section 3.3.4.2).  
3.163.   The CFE remains the sole operator of the electricity transmission (and distribution) 
network and, as such, of imports and exports of electricity.192 Electricity transmission (and 
distribution) tariffs are regulated . 
3.164.   The State has full control (100 %) of PEMEX, and the CFE and its subsidiaries. PEMEX has 
three subsidiaries and the CFE, 10.193 In 2019, a new subsidiary,  CFE Telecomunicaciones e 
Internet para todos  (CFE Telecommunications and Internet for all) was create d.194 
3.165.   In addition to these two companies, in 2021, the State controlled 64 companies operating 
in various sectors, mainly the services sector.195 
3.3.6   Government procurement  
3.166.   Government procurement is governed by federal or local laws (laws adopted by federal 
bodies) or by municipal regulations, as this procurement occurs at state, local and municipal level. 
Federal laws regulate procurement involving federal resources. If federal resources are transferred 
to federal entities (states and Mexico City), t hey are considered to be the federal entities' own 
funds and procurement using these funds is governed by local laws.  
3.167.   The federal public procurement system is regulated by the Constitution (Article  134), the 
Law on Public Sector Procurement, Leases and Ser vices (LAASSP), the Law on Public Works and 
Related Services (LOPSRM) and their respective implementing regulations.196 General guidelines 
have also been issued in manuals, guidelines, guides, rules and decisions.197 Mexico is not party to 
the WTO  Agreement on Government Procurement and is not an observer to the WTO Committee 
on Government Procurement.  
3.168.   All Federal Public Administration (APF) bodies must comply with the provisions of the 
LAASSP and the LOPSRM, with the  exception of State -owned production enterprises, specifically 
 
188 WTO document G/STR/N/16/MEX of  8 December  2016.  
189 Mexican Petroleum Law (Official Journal of 11  August  2014).  
190 WTO document G/STR/N/16/MEX of  8 December  2016.  
191 Ministry of Energy (SENER). Viewed at: https://www.gob.mx/sener/articulos/permisos -otorgados -
por-sener -para-la-importacion -y-exportacion -de-petroliferos -e-hidrocarburos . 
192 The CFE's operations are regulated by the Law on the Federal Electricity Commission (Official Journal 
of 11 August  2014).  
193 List of semi -public bodies of the Federal Public Administration (Official Journal of 13  August  2021).  
194 For more information on the characteristics of an EPE, see WTO document  WT/TPR/S/352/Rev.1, 
of 23 June 2017.  
195 List of semi -public bodies of the Federa l Public Administration (Official Journal of 13  August  2021); 
and information provided by the authorities.  
196 Law on Public Sector Procurement, Leases and Services (Official Journal of 4 January 2000, latest 
amendment on 20 May 2021) and Law on Public Works  and Related Services (Official Journal of 28  May 2000, 
latest amendment on 20  May 2021).  
197 Further information available from the SHCP . Viewed at: 
https://compranetinfo.hacienda.gob.mx/uncp . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  PEMEX, the CFE and their subsidiaries, which have a special procurement regime. In addition, 
Autonomous constitutional bodies of the State, including the Bank of Mexico, the IFT and COFECE 
(Section 2.1), usually have their own procurement rules. Procurement for public -private 
partnership projects are also regulated by the Law on Public -Private Partnerships.198 
3.169.   Up until 2018, the Ministry of Public Administration (SFP) was responsible for planning , 
shaping and implementing public procurement policy, as well as administering CompraNet, the 
online procurement platform. These functions were transferred to the Main Administrative Office of 
the SHCP in 2018.199 
3.170.   Each APF agency has continued to implement its own public procurement processes. 
However, since 2021, the Main Administrative Office of the SHCP has been responsible for 
determining which goods and services must be acquired through consolidated procurement. The 
consolidated procurement process is c arried out by the Main Administrative Office or the 
agencies.200 The objective of consolidated procurement is to rationalize  public spending by 
obtaining better prices, and to rebuild trust in the State procurement system, in line with the 
Comprehensive Str ategy for the New National Procurement System that Mexico began to roll out in 
2019.201 In addition to consolidated procurement, Mexico also promotes the use of framework 
contracts in an effort to reduce expenditure. In 2021, there were 20 framework contrac ts in force, 
signed by the Main Administrative Office. This type of contract has increasingly been used during 
the review period (Table 3.23)  
Table 3.23 Data on government procurement through framework contra cts, 2017 -21  
 2017  2018  2019  2020  2021  
Amount (in MXN)  6,711.8  8,976.4  4,835.1  64,113.5  12,431.2  
Number of contracts awarded  265 323 4,290  3,666  9,314  
Source:  Information provided by the authorities.  
3.171.   In the health sector, Mexico signed an agreement with the United Nations Office for 
Project  Services (UNOPS) for the procurement of medicines and medical equipment between 2020 
and 2024.202 In response to the pandemic, in 2020, the federal govern ment declared a health 
state of emergency and also  authorized six bodies203 to procure medicines, medical 
supplies/equipment and hygiene products.204 
3.172.   The objective of government procurement is to obtain the best price, quality, financing and 
opportunity to make the best possible purchase. The processes must also be transparent and 
fair.205 Any contracts awarded improperly or which defraud the treasury are unlawful.206 In 
addition, collusion in public procurement is an absolute monopolistic practice and, therefore, is also 
illegal per se and a pun ishable offence.207 However, it currently does not constitute grounds for 
 
198 Articles 1 of the LAASSP and the LOPSRM, respectively.  
199 Article 31 of the Law on the Organization of the Federal Public Administration (LOAPF), amended by 
Decree published in the Official Journal of 30 November 2018; and information provided by the authori ties. 
200 Guidelines for coordinating and implementing consolidated procurement processes to acquire or hire 
movable property or provide services of any type (Official Journal of 13  March  2021).  
201 See also the 2019 -24 National Programme to Combat Corruption and Lawlessness, and Improve 
Governance (Official Journal of 30 August 2019).  
202 Ministry of Health. Viewed at: https://www.gob.mx/salud/prensa/mexico -logra-ahorros -en-compra -
de-medicamentos -por-mas-de-11-mmdp ; and the Centre for Economic and Budgetary Res earch A.C. Viewed 
at: https://ciep.mx/eficiencia -del-gasto -en-salud -compra -consolidada -de-medicamentos . 
203 Ministry of Defence (SEDENA); Ministry of the Navy ( SEMAR); Ministry of Health (SSA); Institute of 
Health for Well -being (INSABI); Social Security and Social Services Institute for State Workers (ISSSTE); and 
Mexican Social Security Institute (IMSS).  
204 Decree establishing extraordinary health measures in af fected regions throughout the national 
territory in response to the high -priority severe illness caused by the SARS -CoV2 virus (COVID -19) 
(Official  Journal of 27  March  2020); and the Agreement establishing extraordinary measures that must be 
taken to procu re and import the goods and services referred to in Article 2(II and III) of the Decree 
establishing extraordinary health measures in affected regions throughout the national territory in response to 
the high -priority severe illness caused by the SARS -CoV2 virus (COVID -19) (Official Journal of 3  April 2020).  
205 Article 134 of the CPEUM and the Federal Law on Republican Austerity (Official Journal of 
19 November  2019).  
206 Article 9 of the Federal Law on Republican Austerity (Official Journal of 19  November  2019). 
207 Article 53 of the LFCE (Official Journal of 23 May 2014, latest amendment on 20  May 2021).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  temporarily disqualifying operators from future government procurement processes.208 The 
Superior Audit Office of the Federation and the SHCP (the SFP up until 2018) are responsible fo r 
overseeing the contracts awarded.  
3.173.   Government procurement processes must ensure equal participation for all bidders.209 
As such, the terms and conditions and the requirements of the invitations to tender must not limit 
competition between the bidders.210 If a foreigner is from a country which has signed a trade 
agreement with Mexico containing government procurement clauses, Mexico applies national 
treatment to them.211 If not, on a level playing field, preference is given to goods and services of 
Mexican origin.212 Foreigners' participation in the procurement of works and related services is also 
governed by the principle of reciprocity.213 
3.174.   As in 2017, Mexico uses three procurement methods: public tendering, closed tendering 
(invitation to at least three peo ple) and direct awards. As a general rule, public tendering must be 
used.214 Closed tendering and direct awards are only used when public tendering is not possible, 
for example, when there is only one bidder or the tender process is in response to an emerge ncy 
situation (" force majeure "), whether economic, social or health emergencies, such as a 
pandemic.215 
3.175.   There are no thresholds for determining when the different tendering methods should be 
used. However, the value of the contracts awarded through closed t endering or direct awards is 
capped at an amount based on the procurement budget for each agency. These caps are published 
in the Federal Expenditure Budget and cannot be exceeded.216 In addition, the total value of 
procurement through closed tendering or d irect awards may not account for more than 30 % of the 
annual procurement budget.217 Emergency procurements of medical equipment and devices 
through direct awards in connection with the pandemic were not subject to these restrictions.218 
3.176.   There are three forms  of public tendering: national, international under a trade agreement 
and open international (Table 3.24). Between 2017 and 2017, the national modality was the most 
commonly used public tender process. From 2017 to 2019, between 3 % and 5 % of the total valu e 
of tenders was awarded through open international public tenders; however, this figure stood at 
22% in 2020 and at 26 % in 2021.219 All types of companies may participate in public tendering. 
However, only MSMEs may participate in some public tendering pro cesses, provided that the 
procurement value is below the threshold set out in trade agreements.220 
 
208 Article 60 of the LAASSP; Article 78 of the LOPSRM; and the OECD (2020), OECD Peer Reviews of 
Competition Law and Policy: Mexico.  
209 Articles 26 of the LAASSP  and 27 of the LOPSRM.  
210 Articles 29 of the LAASSP and 31 of the LOPSRM.  
211 WTO document WT/TPR/M/352/Add.1 of 7 June 2017.  
212 Articles 14 of the LAASSP and 29 of the LOPSRM.  
213 Article 30 of the LOPSRM.  
214 Article 134 of the CPEUM.  
215 Articles 40 -44 of the LAASSP and 41 -44 of the LOPSRM.  
216 Annex 9 to the Expenditure Budget for the fiscal year 2022 (Official Journal of 29  November  2021).  
217 Articles 42 of the LAASSP and 43 of the LOPSRM.  
218 Decree establishing extraordinary health measures in affected regions t hroughout the national 
territory in response to the high -priority severe illness caused by the SARS -CoV2 virus (COVID -19) 
(Official  Journal of 27  March  2020); and the Agreement establishing extraordinary measures that must be 
taken to procure and import th e goods and services referred to in Article 2(II and III) of the Decree 
establishing extraordinary health measures in affected regions throughout the national territory in response to 
the high -priority severe illness caused by the SARS -CoV2 virus (COVID -19) (Official Journal of 3  April 2020).  
219 Information provided by the authorities.  
220 Article 35 of the Regulations implementing the LAASSP.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table 3.24 Government procurement processes  
Process  Description  
National  An invitation to tender is issued when the contract value is below the threshold set out 
in trade agreements or when the agreement provides the option that the contract may 
be reserved to Mexican suppliers (even when the contract value is equal to or above the 
threshold).  
Only Mex ican natural and legal persons may participate in the bidding process.  
The goods, services and works must be of national origin. The goods must also be of at 
least 65% local content and, for works contracts, at least 30% of the workforce must be 
locals. Contracts may also require the use of national materials, machinery and teams.  
International under 
a trade agreement  Each trade agreement stipulates the procurement threshold.  
Mexican nationals or nationals of the State or States Parties may participate in the 
bidding process.  
The goods, services and works are of national origin or comply with the rules of origin.  
Open international  An invitation to tender is issued when (i) national open tendering processes have 
received no responses; or (ii) the procurement is financed with loans from an 
international body.  
Mexican nationals or foreigners of any nationality may participate in the bidding 
process.  
The goods, services and works may be of any origin (national or foreign).  
Source:  Secretariat of the WTO and information provided by the authorities.  
3.177.   In public tendering, contracts for goods and services are awarded based on one of the 
three following criteria: the bid with the best cost -benefit ratio; the bid with th e best score; or the 
lowest -priced bid. Under the cost -benefit and score criteria, the lowest price is not necessarily a 
deciding factor.221 The lowest -price criterion is used if the other two cannot be applied.222 On a 
level playing field, preference is giv en to MSMEs.223 Works contracts are generally awarded to the 
most "solvent" bid, i.e. the terms offered by the supplier ensure that the contract will be 
fulfilled.224 On a level playing field, in open international tendering processes for the purchase of 
goods, preference is given to goods of national origin. A margin of preference of 15 % is still given 
to goods of national origin.225 
3.178.   For closed tendering, at least three preselected suppliers are invited to submit bids. The 
same criteria for public tendering a re used for awarding the contract. For direct awards, the 
contract is awarded to a preselected supplier. The authorities have indicated that, in both cases, 
suppliers are preselected through a market study which considers aspects such as candidates' 
techni cal and financial resources.  
3.179.   The tendering processes can be conducted in person, electronically through the CompraNet 
platform or through a hybrid approach. According to the authorities, in 2020, 70 % of tender 
processes were carried out on CompraNet, 18 % in person and 12 % followed a hybrid approach. In 
2019, the federal govern ment digital store (TDGF) was created on the CompraNet platform for 
procuring goods and services under framework contracts.226 
3.180.   In 2017, government procurement accounted for 2.4 % of Mexico's GDP and 10.1 % of 
government expenditure, while in 2020, these figures stood at 1.9 % and 7.4 %, respectively. 
In 2021, government procurement increased to USD  76,644  million, accounting for 5.9 % of GDP 
and 23.1 % of government expenditure. This i ncrease is due to the procurement of medicines, 
medical supplies/equipment and hygiene products as result of the health emergency. Between 
2017 and 2021, the most used method for awarding contracts was direct awards (Chart  3.11). In 
value terms, most procu rement is still through public tendering, although there has been an 
increase in the use of direct awards (Chart 3.11). In  2021, 85 % of government procurement was 
 
221 Article 29, subparagraph XIII, and Article 36 of the LAASSP; and Article 51 of the Regulations 
implementing the LAAS SP. When scores are used, points are awarded for a range of technical, economic, 
administrative and financial criteria, in addition for the following: (i) employing disabled people; (ii) promoting 
gender equality; and (iii) MSMEs, innovation (Article 14 of  the LAASSP).  
222 Article 36 of the LAASSP.  
223 Article 36 bis of the LAASSP.  
224 Article 38 of the LOPSRM.  
225 Article 14 of the LAASSP.  
226 Decision incorporating the federal govern ment digital store application into the CompraNet module 
and issuing the general pro visions regulating the functioning thereof (Official Journal of 31  July 2019).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  through direct awards. This is due to the fact that, against the backdrop of the pandemic, th e 
federal govern ment authorized the use of this method for procuring medicines, medical 
supplies/equipment and hygiene products.  
Chart 3.11 Public procurement data, by procurement method, 2017 -21 
 
Source:  Information provided by the authorities.  
3.3.6.1   Procurement procedures for State -owned production enterprises227 
3.181.   The procurement of goods, services and works by State -owned production enterprises 
(EPEs), PEMEX and the CFE (and their subsidiaries), is exclu ded from the federal government 
procurement regime. PEMEX and the CFE have a special procurement regime regulated by the 
Mexican Petroleum Law and the Law on the Federal Electricity Commission, respectively, and by 
general provisions and guidelines issued by their respective boards of directors. Procurement by 
EPEs is also regulated by Article 134 of the Constitution, which stipulates that, as a rule, public 
tendering should be the method used.  
3.182.   Even though PEMEX and the CFE have their own procurement regime , it is similar to the 
federal regime. For example: (i) both regimes use the same procurement methods: public 
tendering (open competition), closed tendering (invitation to at least three persons) and direct 
awards; (ii)  there are no national procurement th resholds under either of the regimes; (iii) as a 
rule, public tendering must be used; (iv) closed tendering and direct awards are only to be used in 
exceptional circumstances; and (v) in the case of the CFE, the criteria for awarding contracts are 
the best  cost-benefit ratio, the best score and the lowest price. However, there are some 
differences between them. For example, PEMEX may use a preselection process in public tenders 
for highly complex contracts. In addition to using the procurement methods outli ned above, PEMEX 
 
227 WTO document WT/TPR/S/352/Rev.1 of 23  June 2017, and PEMEX. Viewed at: 
https://www.pemex.com/procura/procedimientos -de-contratacion/Paginas/default.aspx ; and the CFE. 
Viewed  at: https://www.cfe.mx/concursoscontratos/Pages/default.aspx . 
28,407 27,21723,36218,921 19,59722,45517,96716,040
10,609 12,694181,362
150,549
150,371
122,285141,875
050,000100,000150,000200,000250,000
2017 2018 2019 2020 2021Number of contracts awarded, by method
Public tendering Closed tendering Direct award16,319
11,1118,34410,047 9,9032,937
2,595
1,080964 1,2658,306
8,929
7,3319,74365,476
010,00020,00030,00040,00050,00060,00070,00080,000
2017 2018 2019 2020 2021Millions of USDContracted amount, by methodWT/TPR/S/429 /Rev.1  • Mexico  
 
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  uses contractual partnerships with strategic suppliers. These contracts are regulated by civil and 
trade law (and not by administrative law).228 
3.183.   Contracts are signed within 10 working days from the date on which they are awarded, 
during whi ch time the rejected participants may submit an "application for reconsideration" to a 
collegiate body composed of several of the company's executives. PEMEX and the CFE must 
provide information to the public about contracts being awarded and the progress of the contracts 
signed.  
3.184.   The procurement processes are conducted electronically only, through the PEMEX 
Electronic Procurement System (SISCEP) and the CFE Electronic Procurement System (SEC). 
According to the authorities, this process may be conducted face -to-face in exceptional 
circumstances.  
3.185.   In 2017 and 2021, the methods most used by PEMEX and the CFE were public tendering 
and direct awards. In 2021, 76 % of the amount contracted by PEMEX and 82.9 % of the amount 
contracted by the CFE were awarded through p ublic tendering.229 
3.3.7   Intellectual property rights  
3.186.   Intellectual property rights (IPRs) in Mexico are regulated by the Federal Law on Industrial 
Property Protection (LFPPI), the Federal Law on Copyright (LFDA) and the Federal Law on Plant 
Varieties (LFVV). The  LFPPI is a new law from 2020, which repeals the 1991 Industrial Property 
Law (LPI).  
3.187.   Mexico is party to 18 treaties of the World Intellectual Property Organization (WIPO).230 
The Hague Agreement (international registration of industrial designs) entered int o force for 
Mexico in 2020. Mexico is also party to the 1978 International Convention for the Protection of 
New Varieties of Plants.  
3.188.   The bodies responsible for IPRs are still the Mexican Industrial Property Institute (IMPI), 
the National Copyright Institut e (INDAUTOR) and the National Seed Inspection and Certification 
Service (SNICS) of SADER.  
3.189.   Between 2017 and 2021, just like during the previous review period (2013 -17), almost all 
patents were filed by non -residents, while Mexican nationals chose to protect  their inventions by 
registering utility models (Chart 3.12). According to the IMPI, the low number of patents filed by 
Mexicans is due to a number of factors, most notably, the lack of investment in R&D.231 Between 
2017 and 2021, most patents were granted for consumer goods (42 %), industrial techniques 
(22%) and chemistry and metallurgy (14 %).232 
 
228 Information provided by the authorities.  
229 Information provided by the authorities.  
230 Three other treaties have been signed: the Beijing Treaty on Audiovisual Performances (201 2), the 
Singapore Treaty on the Law of Trademarks (2006) and the Trademark Law Treaty (1994).  
231 2020-24 Institutional Programme of the Mexican Industrial Property Institute (Official Journal of 
12 November  2020).  
232 IMPI statistics. Viewed at: https://www.gob.mx/impi/documentos/instituto -mexicano -de-la-
propiedad -industrial -en-cifras -impi-en-cifras . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Chart 3.12 Industrial property data, 2017 -21 
 
Source:  IMPI statistics. Viewed at: 
https://www.gob.mx/impi/documentos/instituto -mexicano -de-la-propiedad -industrial -en-cifras -impi-
en-cifras ; and information provided by t he authorities.  
3.190.   According to the IMPI and the European Union Intellectual Property Office (EUIPO), 
between 2010 and 2019, a significant proportion of Mexico's GDP (47.8 %), employment (33.6 %) 
02,0004,0006,0008,00010,00012,00014,00016,00018,00020,000
2017 2018 2019 2020 2021Patent applications
Residents Non-residents02,0004,0006,0008,00010,00012,000
2017 2018 2019 2020 2021Patents granted
Residents Non-residents
050,000100,000150,000200,000250,000
2017 2018 2019 2020 2021Trademark registration applications 
Residents Non-residents020,00040,00060,00080,000100,000120,000140,000160,000
2017 2018 2019 2020 2021Registerd trademarks
Residents Non-residents0100200300400500600700800900
2017 2018 2019 2020 2021Utility model registration applications
Residents Non-residents050100150200250300350400
2017 2018 2019 2020 2021Registered utility models
Residents Non-residents
05001,0001,5002,0002,5003,0003,5004,0004,500
2017 2018 2019 2020 2021Industrial design registration applications
Residents Non-residents05001,0001,5002,0002,5003,0003,500
2017 2018 2019 2020 2021Registered industrial designs
Residents Non-residentsWT/TPR/S/429 /Rev.1  • Mexico  
 
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  and foreign trade (74.7 % of the value of exports and 72.9 % of the  value of imports) was 
generated through IPR -intensive economic activities.233 
3.3.7.1   Industrial property  
3.191.   In 2018, the LPI  (promulgated in 1991) was revised in order to, among other things, 
introduce the geographical indications protection system234; reduce the period for submitting an 
objection to a patent application (from six to two months); extend the maximum protection pe riod 
for industrial designs (from 15 to 25 years); and authorize the registration of non -traditional 
marks235 and certification marks.236 
3.192.   In 2020, the LFPPI was promulgated, which repealed the LPI. The LFPPI entered into force 
on 5 November  2020, with the ex ception of a number of provisions which entered into force a year 
later (November  2021).237 The LFPPI was adopted in order to comply with the commitments 
entered into under the new regional trade agreements and to strengthen industrial property 
protection.238 In January  2022, the Executive Branch had not yet issued the regulations 
implementing the LFPPI. Therefore, the Regulations implementing the Law on Industrial Property 
(promulgated in 1994) remain in force, provided that they do not conflict with the LFP PI.239 The 
LFPPI introduces, among other things, new requirements, protection periods and exceptions (Table 
A3.5). 
3.3.7.2   Patents, utility models, industrial designs and layout designs of integrated 
circuits  
3.193.   Patent applications may be filed electronically with the  IMPI, through the Electronic 
Services Portal (PASE) and, since 2021, through a mobile app. In 2019, the IMPI updated the 
PASE to allow digital signatures to be used, facilitate monitoring of the processing of applications 
and accept online payments.  
3.194.   Under  the LFPPI, there have been no major changes to the patent -granting process, which 
comprises the following stages: filing of the application, examination of form, publication of the 
application, filing of objections, examination of substance, granting of t he patent and the 
publication thereof. The IMPI still has agreements with a number of foreign offices to fast -track the 
examination of substance of applications filed by non -residents.240 On average, the IMPI takes four 
and half years to grant a patent, if the fast -track process is used, this period can be cut to two and 
half years.241 
3.195.   As Mexico notified the WTO in 2020, international best practices on patentability and 
exclusions have been incorporated into the LFPPI.242 As a result, the LFPPI stipulates that 
 
233 IMPI/EUIPO (2019), La Contribución Eco nómica de la Propiedad Intelectual en México . Viewed at: 
https://www.gob.mx/impi/documentos/estudio -la-contribucion -economica -de-la-propiedad -intelectual -en-
mexico . 
234 Up until 2018, the LPI provided protection against the illegal use of geographic indications by 
prohibiting trademarks which include commonly used expressions to refer to geographical origin 
(WTO  document WT/TPR/S/352/Rev. 1 of 23  June 2017).  
235 Olfactory, sound and holographic (touch) marks and corporate images.  
236 WTO document IP/N/1/MEX/16 - IP/N/1/MEX/I/13 of 29  March  2018.  
237 Federal Law on Industrial Property Protection (Official Journal of 1  July 2020). The LFPPI entered  into 
force on 5  November  2020, with the exception of Articles 5 (VI, VII and VIII), 393, 394, 396 (I), 397, 398 
and 400 (Eighth Transitory Article of the LFPPI). The LFPPI was notified to the WTO in WTO document 
IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020.  
238 IMPI (2019), Informe de Labores , January -September. Viewed at: 
https://www.gob.mx/impi/documentos/transparenci a-rendicion -de-cuentas -informes -de-labores -2019. 
239 Regulations implementing the Law on Industrial Property (Official Journal of 23  November  1994, 
latest amendment on 16  December  2016); and Fourth Transitory Article of the LFPPI.  
240 IMPI. Viewed at: https://www.gob.mx/impi/documentos/acuerdos -internacionales -firmados -por-
mexico -para-acelerar -el-examen -de-patentes . 
241 IMPI (2019), Informe de Labores , January -September. Viewed at: 
https://www.gob.mx/impi/documentos/transparencia -rendicion -de-cuentas -informes -de-labores -2019. 
242 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020; and the Ministry of the Economy 
and IMPI PowerPoint presentation of 30  November  2020. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/609867/30_de_noviembre_de_2020_ -
_10_cosas_que_debes_saber_de_la_nueva_LFPPI.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  biological material which has been modified using a technical process may be pa tented (Article 
49). The LFPPI states that cloning processes and processes for modifying genetic identity, as well 
as the industrial or commercial use of human embryos cannot be patented (Article  49) (Table 
A3.5). Under the LFPPI, secondary pharmaceutical patents may also be granted (Article 45).  
3.196.   The LFPPI also incorporates the "Bolar clause" (Article 57), which Mexico adopted in 2003 
and was given effect by the Regulations for Health Inputs up until 2020.243 The "Bolar clause" is an 
exception to the right c onferred by the patent. Under this clause, pharmaceutical companies are 
allowed to access patented substances or active ingredients in order to launch a study and conduct 
trials of generic medicines in order to apply for/obtain the sanitary registration ne eded to market 
the medicine immediately after the patent expires. Under the Regulations for Health Inputs, access 
to patented material was permitted only during the three years prior to the patent's expiry for 
chemical medicines and for eight years prior t o the patent's expiry for biotech medicines. When 
the LFPPI entered into force, this restriction was removed, meaning that generic medicine studies 
can start at any time from the date on which the patent is granted.244 The LFPPI also provides for 
collaborat ive work between the IMPI and the Federal Commission for Protection against Health 
Risks (COFEPRIS), responsible for granting the sanitary registration for medicines (Article  162).245 
In this context, from late 2020, COFEPRIS has been authorized to view the  list of patents related 
to medicines on the IMPI website in order to facilitate the sanitary registration of generic 
medicines.246 Generic medicines account for 90 % of medicines sold in Mexico and 12.1 % of 
Mexican pharmaceutical plants' production.247 
3.197.   The L FPPI keeps the national regime of exhaustion of patent rights in place (Article  57 of 
the LFPPI). Parallel imports are prohibited (Article 55). The same provisions still apply for utility 
models (Articles  63-64). 
3.198.   Since 2017, no compulsory licences have bee n granted to exploit patents in Mexico on the 
grounds of a national emergency or national security.  
3.199.   The patent protection period is 20 years from the patent filing date, with no possibility of 
extending it. However, since 2020, if the IMPI takes more than five years to grant the patent 
(from the patent filing date), a request can be made to extend the patent's validity by up to five 
years. The extension is only granted if the IMPI accepts responsibility for the delay.248 
3.200.   Industrial designs incorporated into industrial products can be protected, and, since 2020, 
so can industrial designs incorporated into handicrafts.249 The maximum protection period for 
utility models was also extended from 10 to 15 years in 2020 (Table A3.5).250 
3.201.   Up until 2020 , exploitation licences had to be registered with the IMPI. In 2020, this 
requirement was removed and, since then, registering the licence has been optional (Article  138 of 
the LFPPI), although it is recommended. Even if the licence contract is not registe red, it protects 
the licensee in the event of any potential disputes with third parties.  
 
243 WIPO document Viewed at: 
https://www.wipo.int/export/sites/www/scp/en/meetings/session_23/comments_received/mexico.pdf . 
244 Federal Commission for Protection against Health Risks. Viewed at: 
https://www.gob.mx/cofepris/es/articulos/reglas -para-la-produccion -de-medicamentos -genericos -en-beneficio -
de-la-poblac ion?idiom=es . 
245 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020.  
246 IMPI. Viewed at: https://patmedsp.impi.gob.mx/Paginas/Inicio.aspx . 
247 Senate of the Republic (2020), Temas Estratégicos No. 86  Viewed at: 
http://bibliodigitalibd.senado.gob.mx/handle/123456789/5095 . 
248 Article 126 of the LFPPI.  
249 Article 66 of the LFPPI.  
250 Article 62 of the LFPPI.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.202.   Just like the LPI, the LFPPI protects industrial secrets. In 2020, the concept of 
misappropriation and its exceptions were incorporated (Articles 163 -164).251 The LFPPI  retains the 
obligation to take every precaution to keep information confidential in order to be able to enjoy 
protection.  
3.3.7.3   Marks  
3.203.   Just as with patents, applications to register a mark are filed through the PASE 
(modernized in 2019) and, since 2021, through the IMPI mobile app. The registration procedure 
still consists of filing the application, its publication, the filing objections, the examination of form 
and substance, granting the mark registration and its publication. However, since 2020, the IMPI 
has c arried out the examinations of form and substance at the same time; therefore, the IMPI 
issues just one opinion to inform the applicant of any form or substantive impediment.252 In 
addition, since 2020, the applicant has had two months (rather than one prev iously) to respond to 
any objections; this period can be extended for another two months (Article 225). According to the 
authorities, the IMPI takes around six months to finish processing a mark registration.  
3.204.   The LFPPI protects traditional and non -traditio nal marks, collective marks, certification 
marks, well -known and famous marks, trade notices and trade names. In order to register a 
well-known and famous mark in Mexico, applicants still require a brand awareness declaration 
issued by the IMPI, which is v alid for five years. However, the LFPPI removes all requirements to 
demonstrate that a mark is famous or well -known, making it easier to obtain the declaration 
(Article  192 of the LFPPI).253 As a result, since 2020, there have been no requirements to provid e 
proof of the following: investment during the last three years in advertising or promoting the mark 
in Mexico or abroad; the mark's actual geographical area of influence; the sales volume of 
products or income from providing services; and the actual or e stimated economic value of the 
mark in the equity of the company that owns it.  
3.205.   Applications to register a mark are still filed by product or service class under which the 
mark is to be registered.254 The IMPI still does not accept a single application can b e made for a 
product or service belonging to various classes. Since 2020, marks may be registered that are 
identical to other marks that have been registered or are in the process of being registered, for the 
same product or service, provided that consent is obtained from the owner of the mark that has 
been or is being registered.255 
3.206.   Up until 2020, licences to use registered marks had to be registered with the IMPI. In 
2020, this requirement was removed and registering the licence has become optional (Articl e 240 
of the LFPPI) but recommended. Even if the contract is not registered, it protects the licensee in 
the event of any potential disputes with third parties.  
3.207.   The protection period for trademarks is still 10 years, which can be renewed indefinitely. 
Since 2020, the protection period has been calculated from the date on which the registration was 
granted (Table A3.5); previously, the period began on the date on which the application was filed. 
Therefore, the new regime provides the trademark owner with eff ective protection for 10  years.256 
3.208.   In order to maintain the trademark registration, owners must show that they market 
products or services which bear the registered trademark, which has been registered for more 
than three years. The registration lapses if t he trademark is not used for three consecutive 
years257; and the owner must also prove that they are using it through a declaration of use. When 
renewing the registration, they must also prove that the trademark has been used. Since 2020, if, 
during the ren ewal process, the owner fails to file the declaration of use, the IMPI must notify 
 
251 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30 July 2020; and the Ministry of the Economy 
and IMPI PowerPoint presentation of 18  November  2020. 
https://www.gob.mx/cms/uploads/attachment/file/592651/18_de_noviembre_de_2020_ -
_La_nueva_LFPPI.pdf . 
252 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020.  
253 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020.  
254 Article 176 of the LFPPI.  
255 Article 173 of the LFPPI.  
256 Article 178 of the LFPPI and WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020.  
257 Article 235 of the LFPPI.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  them and give them two months to complete this step.258 However, since 2020, it has also been 
possible to partially cancel the registration of a trademark, meaning that the owner loses their 
right only over products and services where the trademark has not been used (Articles 235 and 
260 of the LFPPI).  
3.3.7.4   Designa tions of origin and geographical indications  
3.209.   Applications for declarations of protection for a designation of origin (DO) or a geographical 
indication (GI) may be made ex officio  or by a representative. Since 2020, deputies and senators 
of the Congress of the Union have been able to apply for a declaration of protection.259 The LFPPI 
specifies the various characteristics and requirements that the DOs and the GIs must fulfil in order 
to obtain this declaration (Articles 274 -275); previously, the same requirem ents were applied both 
to DOs and to GIs. The declaration of protection is valid as long the original conditions for which it 
was issued prevail. There have been no changes in the LFPPI to the time period (two months) for 
submitting objections once the dec laration of protection is published (Article 282). The State is the 
owner of the DOs/GIs; the IMPI authorizes producers to use the DOs/GIs for a period of 10  years 
(renewable). Since 2020, DOs have been set out in NOMs, meaning that these NOMs must be 
followed when using a DO; the authorities have stated that, through the NOMs, they seek to 
increase protection and control the production of products with an appellation of origin. According 
to the LFPPI, an IMPI -accredited body must certify the extraction, pr oduction or processing; the 
container, packaging or wrapping; and the marketing of a product protected by a DO/GI 
(Article  289).  
3.210.   Foreign DOs and GIs are protected in Mexico by registering them with the IMPI. After the 
applicant files the application, there  is a period of two months (which cannot be renewed) to 
submit an objection, and another two -month period for the owner to respond.260 
3.211.   As of 2022, Mexico has 18 products registered as DOs261 and 3 products registered as GIs. 
In 2019 -20, DO/GI products accoun ted for 0.5 % of the value of Mexico's non -oil exports.262 
According to the IMPI, Mexico has not yet harnessed the full potential of its DOs/GIs.263 All 
products with DOs  are subject to tariffs, with rates varying between 9 % and 45 %, with the 
exception of Cacao Grijalva, which is exempt.264 
3.3.7.5   Copyright and related rights  
3.212.   In 2020, the Federal Law on Copyright (LFDA) was revised in order to strengthen the 
protection for artisti c and literary works, folk and craft art, primordial artworks, collective artworks 
and artworks derived from popular cultures or expressions of traditional cultures.265 In order to 
use them, since 2020, written consent has been required from the indigenous community granted 
exclusive use over them. In 2020, new provisions were also introduced into the LFDA in order to 
combat digital piracy ( Section 3.3.7.3).266 
3.213.   Literary and artistic works and their related rights are protected even when they are not 
registere d. However, registering the work or the interpretation with the National Copyright 
Institute (INDAUTOR) is strongly recommended.267 Their creators have exclusive personal rights 
 
258 Articles 233 and 237 -238 of the LFPPI.  
259 Article 273 of the LFPPI.  
260 Articles 315 -327 of the LFPPI; and the IMPI. Viewed at: 
https://www.gob.mx/impi/articulos/tradicion -e-identidad -protegidas -las-denominaciones -de-origen -e-
indicaciones -geograficas . 
261 During the review period, the Raicillia (beverage) DO and the Pluma coffee DO were granted.  
262 Decree amending the tariff s chedule in the Law on General Import and Export Taxes, Decree 
introducing the general import tax for the border region and the northern border zone, and Decree establishing 
various sectoral promotion programmes (Official Journal of 18  November  2021).  
263 2020-24 Institutional Programme of the Mexican Industrial Property Institute (Official Journal of 
12 November  2020).  
264 Decree amending the tariff schedule in the Law on General Import and Export Taxes, Decree 
introducing the general import tax for the border region and the northern border zone, and Decree establishing 
various sectoral promotion programmes (Official Journal of 18  November  2021).  
265 Information provided by the authorities.  
266 Federal Law on Copyright (Official Journal of 24 December 1996, latest a mendment on 1  July 2020).  
267 Article 162 of the LFDA.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  (moral rights) and economic rights (ownership rights) over their works and inte rpretations. 
Economic rights may be transferred through licences.268 Moral rights are protected in perpetuity, 
whereas economic rights are protected for the author's lifetime plus 100 years. The protection 
given to performers and phonogram producers is 75 y ears, for videogram producers and 
broadcasting organizations, it is 50  years.  
3.3.7.6   Plant varieties  
3.214.   There have been no changes to the 1996 Federal Law on Plant Varieties (LFVV) since the 
last Mexico review in 2017.269 
3.215.   Protection is granted to new, distinct, stabl e and uniform plant varieties through a 
breeder's title requested from the National Seed Inspection and Certification Service  (SNICS). The 
breeder has the exclusive right to exploit perennial species for a maximum period of 18 years 
(from the date on which  the title is issued); for all other species, the period is 15  years. A breeder 
may transfer their exclusive right through a licence. The SNICS may also issue an emergency 
licence if the plant variety is not being exploited or should there be a shortage in  the national 
market (even though no such licences have been issued to date). Seeds and plant material (buds, 
cuttings, rhizomes, runners and tubers) imported for the purposes of reproducing or propagating a 
plant variety are protected in Mexico, provided that the plant variety is also protected in Mexico.270 
Breeders must register plant varieties in the National Catalogue of Plant Varieties (CNVV), 
managed by the SNICS, in order to be able to certify their quality.271 
3.3.7.7   Enforcing IPRs  
3.216.   Administrative, civil or criminal proceedings may be brought against individuals or 
companies unlawfully using IPRs. Administrative proceedings are brought before the IMPI for both 
industrial property and copyright and related rights cases.272 Conciliation can be used as an 
alterna tive to administrative proceedings.  
3.217.   Administrative proceedings before the IMPI for unlawful use of an IPR are initiated with an 
"Administrative Declaration on an Administrative Trade Offence" application. In the application, the 
rights holder may ask the I MPI to order the imposition of provisional measures. The IMPI may also 
impose these measures ex officio . 
3.218.   In 2020, a new type of provisional measure was introduced: suspending, blocking or 
removing materials disseminated digitally (Article 344 of the LFPPI) . Another provisional measure 
that may be adopted is seizing goods which are being imported or exported or which are in transit 
when IPRs are infringed (Article 344). At the border, the Mexican National Customs Agency 
(ANAM) seizes the goods which allegedl y violate the IPRs, provided that the IMPI or the Office of 
the Attorney General of the Republic (FGR) orders it to do so; the ANAM does not take action 
ex officio . The goods are retained by the ANAM for a maximum of five days, during which time the 
rights  holder must initiate administrative or criminal proceedings. If not, the goods are released.273 
However, if the ANAM has suspicions about the authenticity of a product protected by an IPR, it 
may notify the IMPI or the FGR. In order to make it easier to id entify registered trademarks, the 
ANAM has a free trademark database.274 
 
268 Licences are generally granted for five years. They may be granted for a longer period when 
publication of a work necessitates large -scale investment or in the case of musical works which require a 
longer period for dissemination (Article  33 of the LFDA and Article  17 of its implementing Regulations).  
269 Federal Law on Plant Varieties (Official Journal of 25  October  1996, latest amendment on 
9 April 2012).  
270 WTO document WT/TPR/M/352/Add.1 o f 7 June 2017.  
271 Federal Law on the Production, Certification and Trading of Seeds (Official Journal of 15  June 2007, 
latest amendment on 11  May 2018).  
272 Article 232 of the LFDA.  
273 Information provided by the authorities.  
274 IMPI (2019), Informe de Labores , January -September. Viewed at: 
https://www.gob.mx/impi/documentos/transparencia -rendicion -de-cuentas -informes -de-labores -2019. WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.219.   Between 2017 and 2020, the IMPI dealt with 2,936 trade -related administrative 
offences.275 If the IMPI determines that an administrative offence was committed, a fine will be 
imposed. S ince 2020, fines equivalent to 250,000 UMAs may be imposed.276 Previously, the 
maximum amount was 20,000 UMAs. Administrative decisions may be appealed before the Federal 
Administrative Justice Court. During the same period, the IMPI also carried out an ave rage of 
4,800 inspection visits per year, either ex officio  or at the request of a party, in order to withdraw 
counterfeit or pirated goods from the domestic market.277 
3.220.   The goods seized at the border and on the market can be gifted, but the vast majority of  
them are destroyed. The IMPI determines that the goods will be gifted or destroyed after 
consulting with the affected rights holders. As notified to the WTO by Mexico, in 2020, the process 
for destroying counterfeit goods has streamlined, leaving 15 worki ng days for the parties to agree 
what should happen to the seized goods once the administrative -offence ruling is handed down by 
the IMPI; if they do not state their position, the IMPI orders the destruction of the goods.278 In 
2019, counterfeit products, valued at MXN  16.5 million, were destroyed.  
3.221.   For judicial matters, Mexico has civil and criminal collegiate courts to deal with IPR -related 
cases.279 In 2020, the process for initiating civil action was amended, as up until 2020, the 
administrative process had to be exhausted before civil action could be initiated and compensation 
for damages could be claimed (Article 396 of the LFPPI).280 In addition, since 2020, after 
exhausting the administrative process, the IMPI may be requested to determine the damages 
incurred and the compensation amount, without having to go to the courts (Article  343).  
3.222.   The reforms introduced under the LFDA included new measures to combat digital piracy. 
Since 2020, copyright and related rights holders have been able to use technological protection 
measures (TPMs), i.e.  "digital locks", to protect their works.281 The "notification and removal" 
mechanism was also introduced, which t he holder can use to notify an Internet service provider 
(ISP) that content which infringes their rights has been uploaded by a user. Should this occur, the 
ISP must remove the content quickly. If it fails to do so, it will be fined. The LFDA does not 
indicate how long the ISP has to remove the infringing content; however, the authorities have 
stated that the regulations implementing the LFDA are being revised to determine the timeframe. 
There is a mechanism the alleged infringer may use to defend themselve s, which requires the ISP 
to inform the rights holder and, if no action is taken by the holder within 15 days of being 
informed of this, the content is restored. The LFDA also sets out exceptions where ISPs are not 
responsible for the illegal content uploa ded to their networks; for example, if they do everything 
possible to close the accounts of the infringing users.282 
3.223.   In addition, since 2020, recording or making a copy of a film at a cinema is treated as an 
administrative offence (Article 231 of the LFDA).  This action is also treated as a criminal offence as 
it was added to the Federal Criminal Code in 2020. Other actions which infringe intellectual 
property rights in the digital environment, such as decoding or providing goods and/or services for 
decoding audio -visual signals, and getting around or providing tools for getting around "digital 
locks" for commercial gain were also added to the Federal Criminal Code.  
3.224.   The "Piracy Mailbox", an electronic platform which can be used to report actions to the 
IMPI wh ich may infringe copyright and related rights, still exists; in 2019, 97 complaints were 
handled.  
 
275 IMPI sta tistics. Viewed at: https://www.gob.mx/impi/documentos/instituto -mexicano -de-la-
propiedad -industrial -en-cifras -impi-en-cifras ; and inf ormation provided by the authorities.  
276 Article 388 of the LFPPI.  
277 IMPI statistics. Viewed at: https://www.gob.mx/impi/documentos/ins tituto -mexicano -de-la-
propiedad -industrial -en-cifras -impi-en-cifras . 
278 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020; and information provided by the 
authorities.  
279 WIPO. Viewed at: https://www.wipo.int/wipolex/es/judgments/j -admin/mx.html . 
280 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020.  
281 TPMs are computer programs that restrict what users can do with the content of copyrighted works.  
282 Articles 114 bis-114 octies of the Federal Law on Copyright.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  3.225.   According to a survey conducted by the IMPI in 2018, 85 % of respondents had bought 
pirated or counterfeit products at least once (mainly musical works, films and shoes), which were 
purchased from street stalls.283 Mexico does not impose sanctions/fines for the purchase of pirated 
or counterfeit products. However, the IMPI is constantly running campaigns to raise public 
awareness about the risk of purchasing coun terfeit products (in addition to health risks).284 Despite 
these efforts, according to the IMPI, piracy and counterfeiting have a significant impact on the 
Mexican economy, resulting in annual losses of more than MXN  43 billion. It is also estimated that 
approximately MXN  6 billion  is lost in tax revenue each year through the related VAT evasion.285 
 
 
 
 
283 IMPI. Viewed at: https://www.gob.mx/impi/documentos/encuesta -nacional -sobre -habitos -de-
consumo -de-pirateria -2019 and https://www.gob.mx/se/articulos/inicio -el-impi-la-destruccion -de-pirateria -
mas-cuantiosa -de-la-historia? idiom=es . 
284 IMPI (2019), Informe de Labores , January -September.  
285 IMPI (2019), Informe de Labores , January -September.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.  The contribution of the agricultural sector (including crop farming, livestock farming, forestry, 
fisheries and related services) to GDP rose slightly, from 3.3 % in 2016 to 3.8 % in 2021. However, 
growth in the sector slowed in 2018 and contracted sharply in 2019, before starting to recover 
in 2020, despite the effects of the pandemic. The structure of the sector has not changed 
significantly during the review period. During that time, fisheries was the most volatile activity. In 
2021 crop farming accounted for 65.3 % of agricultural GDP (62.3 % in 2016), livestock  farming for 
29.2% (31.5 % in 2016) and other activities for 5.4 % (6.1% in 2016). Between 2016 and 2021 
there was a slight fall in the percentage of the population employed in agriculture (Table  4.1). 
Nonetheless, the sector continues to be important to the  rural population (around 28  million 
people), as the majority of them are dependent on crop farming, hence the importance of 
agriculture in terms of social, economic and environmental equity in Mexico.  
Table 4.1 Main indicators for the agricultural sector, 2016 -21 
 2016  2017  2018  2019  2020  2021  
Share of agriculture in GDP (% at current 
prices)a 3.3 3.4 3.4 3.4 3.8 3.8 
Real rate of growth in agriculture (%, at 
constant prices)a 3.5 3.4 2.6 -0.3 0.3 2.2 
Share of agricultural GDP (% at current prices)  
 Crop farming  62.3 64.1 63.6 63.6 64.3 65.3 
 Livestock farming  31.5 29.8 30.3 30.5 30.3 29.2 
 Forestry  3.1 3.1 2.9 2.9 2.7 2.6 
 Fisheries, hunting and trapping  2.8 2.6 2.8 2.6 2.4 2.5 
 Services related to agricultural and 
 forestry activities  0.3 0.4 0.4 0.3 0.3 0.3 
Real growth rate (%, at constant prices)  
 Crop farming  5.6 4.0 2.7 -0.5 -0.4 2.0 
Livestock farming  -0.4 2.1 2.2 2.3 3.1 2.2 
 Forestry  4.7 8.0 -0.2 0.3 -4.2 4.5 
 Fisheries, hunting and trapping  1.9 -4.9 8.3 -20.7 -9.8 10.3 
 Services related to agricultural and 
 forestry activities  0.7 35.2 5.8 -9.9 -10.2 -15.3 
Employment (% of the total working population)  
Crop farming, livestock farming, forestry, 
hunting and fisheries  13.1 12.8 12.5 12.2 12.6 12.3 
Agricultural sector (WTO definition)  
Exports  
Value (USD millions)  27,892  31,075  32,275  35,377  37,483  42,678  
Share in total exports (%)  7.5 7.6 7.2 7.7 9.0 8.6 
Growth rate (%)  9.9 11.4 3.9 9.6 6.0 13.9 
Five most important products, according to HS chapter (% of total agriculture)  
 22. Beverages, spirits and vinegar  16.1 18.2 20.9 21.2 21.6 23.5 
07. Edible vegetables and certain roots and 
tubers  23.3 21.2 21.7 20.7 22.2 20.2 
08. Edible fruit and nuts; peel of citrus fruit 
or melons  19.9 20.8 20.1 21.1 18.9 19.4 
 02. Meat and edible meat offal  5.7 5.6 5.7 6.3 7.0 7.5 
19. Preparations of cereals, flour, starch or 
milk 6.1 6.3 6.1 5.9 6.0 6.3 
Imports  
Value (USD millions)  23,471  24,508  24,976  26,602  25,419  35,938  
Share in total imports (%)  6.1 5.8 5.4 5.8 6.6 7.1 
Growth rate (%)  -2.7 4.4 1.9 6.5 -4.4 41.4 
Five most important products, according to HS chapter (% of total agriculture)  
10. Cereals  17.1 18.2 19.9 17.5 18.8 21.0 
12. Oil seeds and oleaginous fruits and 
miscellaneous; industrial or medicinal 
plants; straw and fodder  9.9 10.2 5.9 11.2 14.1 14.6 
02. Meat and edible meat offal  15.2 15.8 15.2 15.5 13.7 14.3 
04. Dairy produce; birds' eggs; natural 
honey; edible products of animal origin  6.8 7.3 7.0 7.7 7.2 6.1 
23. Residues and waste from the food 
industries; prepared animal fodder  6.8 6.1 6.2 6.0 4.5 6.0 
Agricultural trade balance (USD millions)  4,421  6,567  7,299  8,775  12,065  6,740  
a Includes crop farming, livestock farming, forestry, fisheries and hunting.  
Source:  National Institute of Statistics and Geography (INEGI), Economic Information Bank (BIE), Economic 
indicators and national accounts; FAO  Stat, Agriculture (production, trade); and trade da ta supplied 
by the authorities.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.2.  Sugar cane continues to be the largest crop in terms of volume of production, but is not one 
of the top exports. Staple grains are important both in terms of volume and because of their 
prominent place in the Mexican diet, a nd are regarded as essential products. The most important 
crop in terms of production is maize, which accounts for 75.4 % of all grains produced.1 
4.3.  In line with the trend that started in 2015, Mexico is a net exporter of agricultural products. 
The agricultu ral trade balance was positive throughout the review period, rising 
from USD 4,389  million in 2016 to USD  12,065  million in 2020, although in 2021 it fell 
to USD 6,740  million because of the international economic situation. Fruit and vegetables have 
traditionally been the top export products, while the importance of alcoholic beverages (beer) rose 
in 2021; of note among imported products are cereals (yellow maize), and seeds and meat 
(Table  4.1). The United States is the chief market for both exports and i mports. The bulk of 
Mexico's imports of agricultural products enter the country under preferential regimes, especially 
for products from Canada and the United States, but also from Chile and Uruguay.  
4.4.  The National Development Plan (PND) 2019 -24 is the key p lanning document for setting 
national public policy priorities, and together with the Sectoral Programme for Agriculture and 
Rural Development 2020 -24, it lays down the development goals for the sector. The PND sets the 
goals of achieving food self -suffici ency and "saving the countryside"; accordingly, the first goal of 
the sectoral programme is to increase food production, especially of staple grains, meats and milk, 
by incorporating technologies that will raise productivity and competitiveness while suppo rting 
sustainability and inclusion. One aspect of this goal is to increase support for women farmers. 
Accordingly, in 2020 the Fertilizers for Wel l-being  Programme allocated 42 % of its budget to 
women small -scale producers, who received around MXN  728 million by way of inputs to raise 
their productivity and standards of living.2 
4.5.  Another sectoral programme goal is to "increase sustainable production practices in the 
agricultural, aquaculture and fisheries sector in view of agro -climatic risks". In 2017, onl y 46.2 % 
of producers followed at least one sustainable practice. The Plan proposes that at least one 
sustainable practice should be adopted by 75 % of agricultural producers in order for Mexico to 
meet its commitments under the Paris Agreement. The Plan als o sets a goal of building the 
resilience of at least 50 % of the municipalities most vulnerable to climate change, establishing 
early-warning and risk -management systems at all levels of government and achieving a net 
deforestation rate of 0 % by 2030. Despi te these efforts, some studies point to the need to address 
particular challenges in relation to sustainable agricultural production. For example, according to 
the OECD, distributing free fertilizers under the Fertilizers for Well-being  programme without 
considering the needs of the soil can adversely affect water and air quality.3 Moreover, according 
to the Sectoral Programme for Agriculture and Rural Development 2020 -24, the water stress 
experienced by Mexico is chiefly the result of intensive water usag e (77 % of fresh water is used 
for crop irrigation).4 
4.6.  The sectoral programme identifies low productivity in the primary sector, especially among 
small and medium -sized producers, as a challenge. The programme links low productivity to low 
investment, which  is itself the consequence of  insufficient finance for the sector  and the lack of 
access to technology, inputs and agricultural advisory services, and the plant and animal health 
environment. For example, in the fisheries sector 54 % of all vessels are more than 30  years old 
and the capacity of the non -commercial fleet (98 % of the total fleet) is less than 10  tonnes. The 
reasons for low productivity include l ow levels of capitalization and technological innovation, which 
once again ar e consequences of the lack of adequate finance for the sector. Credit aimed at the 
agricultural and fisheries sector represents only 4 % of GDP, and 95 % of all credit granted is for 
agricultural activities. The activities with the least access to finance ar e aquaculture and fisheries.5 
 
1 FAO Stat. Information viewed at: https://www.fao.org/faostat/en/#data . 
2 SADER  Press Release No.  099 of 7  March 2021. Viewed at: 
https://www.gob.mx/agricultura/prensa/fertilizantes -para-el-bienestar -destino -42-de-su-presupuesto -a-
productoras -de-pequena -escala . 
3 OECD (2021), Agricultural Policy Monitoring and Evaluation 2021. Information viewed at: 
https://www.oecd.org/publications/agricultural -policy -monitoring -and-evaluation -22217371.htm . 
4 Sectoral Programme for Agriculture and Rural Development 2020 -24 (Official Journal 
of 25 June 2020).  
5 Sectoral Programme for Agriculture and R ural Development 2020 -24 (Official Journal 
of 25 June 2020).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.7.  The programme also refers to the considerable differences in development across the 
country's five regions (north -west, north -east, central -west, central and south -south -east) and the 
various types of crop farming in each reg ion. In the north -west and north -east regions, farming for 
business and commercial purposes predominates, involving export crops, larger -scale production 
units, greater access to finance, technologies and inputs, and consequently greater productivity 
and c ompetitiveness. By contrast in the central and south -south -east regions, the technology is 
outdated, resources and inputs are scarce, production units comprise small producers (family or 
subsistence farms), producers have a medium level of productivity and  their production is geared 
towards the domestic market. In order to reduce inequalities, Mexico is trying to implement a 
differentiated policy that takes stock of each region's potential and addresses the needs of the 
various groups of producers in each r egion. The aim of the policy is to prioritize support and 
encouragement for producers who, because of poverty, need help in obtaining inputs, 
implementing processes or using collective assets, without neglecting the agri -export sector.  
4.8.  Aside from the laws on health and safety ( Section  3.3.3), the laws governing the agricultural 
sector in Mexico have not undergone substantial change during the review period, although they 
have been subject to some amendments (Table  4.2). 
Table 4.2 Legislation in the agricultural sector, 2021  
Legislation  Publication in the DOF/ Latest 
amendment 
Land Law  26.02.1992/25.06.2018  
Law on Sustainable Rural Development  07.12.2001/03.06.2021  
Federal Law on the Production, Certification and Trading of Seeds  15.06.2007/ 11.05.2018  
Federal Law on New Plant Varieties  25.10.1996/09.04.2012  
Law on Organic Products  07.02.2006  
Federal Law on Animal Health  25.07.2007/16.02.2018  
Federal Law on Plant Health  05.01.1994/26.12.2017  
Law on Biosafety of Genetically Modified Organisms  18.03.2005/06.11.2020  
Rural Energy Law  30.12.2002/28.12.2012  
Law on the Manufacturing and Sale of Roasted Coffee  25.05.1972/10.12.2004  
Internal Regulations of SADER  03.05.2021a 
Rules of Operation of SADER programmes  Annual  
a Repeals the Internal Regulations of the Ministry of Agriculture, Livestock, Rural Development, 
Fisheries and Food (Official Journal of 25  April 2012).  
Source:  Information provided by the authorities.  
4.9.  At the institutional level, one important change since the previous review was the 
replacement in 2018 of the Ministry of Agriculture, Livestock, Rural Development, Fisheries and 
Food (SAGARPA) with the Ministry of Agric ulture and Rural Development (SADER), which took over 
SAGARPA's role (Table  4.3). 
Table 4.3 Main institutions responsible for the agricultural sector, 2021  
Institution  Main functions  
Ministry of Agriculture and 
Rural Development (SADER)  Formulate, direct and evaluate rural development policy in coordination with the 
competent agencies.  
Develop official animal and plant health regulations; monitor compliance; 
oversee and evaluate health campaigns; issue certifications in its area of 
competence.  
Formulate, direct and oversee technical assistance and training programmes.  
Propose and impleme nt policy in respect of agricultural matters in international 
affairs and foreign trade.  
National Aquaculture and 
Fisheries Committee 
(CONAPESCA)  Propose and coordinate national policy for the sustainable development of 
fisheries and aquaculture resources, and for the development and promotion of 
fisheries and aquaculture activities.  
Implement the legal provisions concerning the use, development and 
conservation of fisheries resources and the development of aquaculture.  
Develop policie s, and technical assistance and training programmes on health.  
National Institute of 
Fisheries (INAPESCA)  Conduct research related to fisheries and aquaculture.  
Provide technical advice to the sector.  
Develop and update the National Fishing Charter and th e National Aquaculture 
Charter  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Institution  Main functions  
Food Security Agency 
(SEGALMEX)  Procure agri -food products to supply the rural population.  
Promote the production, collection, provision, distribution, supply, processing 
and marketing of staple foods and of milk and dairy p roducts.  
Sell, distribute and import fertilizers and improved seed.  
National Agri -Food Health, 
Safety and Quality Service 
(SENASA)  Implement and monitor compliance with the provisions on agri -food health, 
safety and quality in connection with plant, anima l, fishery and aquaculture 
products and by -products.  
National Agricultural, Rural, 
Forestry and Fisheries 
Development Bank (FND)  Grant credit to producers and rural financial intermediaries (IFR).  
Provide training and advice to producers and IFR so that they can make better 
use of the credit resources available to them.  
Encourage financial inclusion among the rural population as a means of regional 
development.  
National Institute for 
Forestry, Agricultural and 
Livestock Research  (INIFAP)  Promote R+D in the agricultural sector.  
National Seed Inspection 
and Certification Service 
(SNICS)  Encourage, promote, organize, coordinate and deal with activities concerning 
the production, grading, certification, conservation, analysis and marketing of 
seeds.  
Source:  Basic Law on the Public Administration, Internal Regulations of SADER, and the Decree establishing 
the Food Security Agency.  
4.1.1   Measures affe cting imports and exports  
4.10.  The average applied tariff on agricultural products (WTO definition) fell from 14.3 % in 2016 
to 13.2 % in 2021. However, it is still higher than the 5.9 % applied tariff on non -agricultural 
products in 2021. On average, the highest duties by WTO category continue to be applied to sugar 
and confectionery (40.9 % in 2016 and 30 % in 2021) and to beverages and spirits and tobacco 
(23.1 % in 2016 and 24.4 % in 2021). In third place are dairy products (23.6 % in 2016 and 22.1 % 
in 2021) (Table  A3.1). Moreover, the bulk of tariff rates above 25 % (30%, 36%, 45%, 50%, 67% 
and 75 %) are used for agricultural products. In 2021, the products with a rate of 75 % were meat 
and offals, vegetables (1  line) and sugars (2  lines), to which a 100 % rate applied in 2016. The 
67% rate (as in  2016) applied to tobacco -related products, whereas the 45 % rate applied to food 
preparations, coffee and milk (45 % or 50 % in 2016) (Table  A3.1). The average tariff on fish and 
fish products fell from 15.5 % in 2016 to 13.8 % in 2021. 
4.11.  Mexico continues to use specific, compound and seasonal tariffs. Generally, the agricultural 
products subject to specific and compound tariffs in 2021 were the same as in 2016, except for 
cocoa preparations which, in a change from previously, are curr ently subject to a compound tariff. 
In 2021, 42 tariff lines related to agricultural products were subject to non -ad valorem  
tariffs:  8 lines to specific tariffs6 and 34  lines to compound tariffs.7 Sorghum 
(HS 1007.90.01 -1007.90.02), soya  beans (HS  1201.90.01 -1201.90.02) and safflower seeds 
(HS 1207.60.03 -1207.60.99) continue to be subject to seasonal tariffs of 15 % (sorghum and soya 
beans) and 10 % (safflower seeds) for a certain period of the year. Outside that period, imports of 
these products are tariff-exempt.  
4.12.  Mexico bound all its tariff lines in the Uruguay Round, with bound rates on agricultural 
products ranging from 0 to 254 %. Mexico's bound tariff, like its applied tariff, contains specific and 
compound tariffs. The compound bound tariffs appl y primarily to agricultural products.  
4.13.  Mexico continues to use three kinds of tariff quotas: those negotiated at the WTO (WTO 
quotas), unilateral quotas, and preferential quotas. The Ministry of Economic Affairs (SE) has the 
power to establish "tariff -exemp t" quotas where it deems them necessary.8 In 2020 and 2021, 
the SE placed tariff -free quotas on rice, beef (fresh, chilled or frozen), onions, fruit, vegetable fats 
and oils, maize, cane molasses, tomatoes and soya cake to ensure supply and price stabilit y. 
 
6 The specific duties apply to: sugars, chemically pure sucrose and cocoa.  
7 Compound tariffs apply to: various kinds of milk, cream and ice cream; certain fruits (for example, 
strawberries, raspberries and other berries); molasses and articles of sugar confectionery, whether or not 
containing cocoa; extracts of malt; biscuits and other food preparations; cocoa and cocoa preparations; 
waters, sweetened and flavoured; and ethyl al cohol.  
8 Online information. Viewed at: 
http://www.diputados.gob.mx/LeyesBiblio/ref/ligiex/LIGIEx_tarifa01_24dic20.pdf  and Decision announcing the 
tariff for imp orting beef under the indicated tariff quota (Official Journal of 28  June 2021).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.14.  Within the WTO framework, Mexico applied tariff quotas to 56  HS 8-digit lines in 2021.9 As 
in 2016, the only WTO quota used in 2021 was that for powdered milk (Table  A3.2). This is 
because in some cases the out -of-quota applied MFN tariff is lower than  the in -quota applied tariff 
(e.g. for sugar, meat and edible offal, hard and semi -hard cheeses, some types of coffee, animal 
fats and some types of cereals and beans). In other cases, WTO quotas were not used because 
preferential or unilateral quotas prov ide better access.  
4.15.  In 2021, Mexico used unilateral quotas for certain agricultural products (including fishery 
products) contained in 40 HS 8-digit tariff lines (Table  3.5). Some of the products (14  tariff lines) 
are also subject to WTO tariff quotas.10 However, the volumes imported under unilateral quotas 
were generally well below the quota amount and were used only for coffee, dairy preparations, 
chicken and turkey cuts and fish fillets (Table A3.3). As in 2016, the tariff under the unilateral 
quota in 20 21 was less than that under the WTO quota. Mexico has also negotiated preferential 
quotas for agricultural products (including fisheries products) within the framework of its trade 
agreements.11 In 2020, Mexico used preferential quotas very little, doing so only for: peaches from 
Argentina (47 % fill rate); cuts of boneless meat (Japan (100 %)); cocoa beans (Peru (100 %)); 
cheese (Uruguay (85 %)); and the quotas negotiated under the CPTPP (cheese (58 %)) and 
preparations based on dairy products (99 %)). 
4.16.  The tariff quotas continue to be administered by the SE. In general, quotas are allocated by 
open tender, although there are other allocation procedures (such as direct allocation and 
"first come, first served").  
4.1.2   Domestic support  
4.17.  Mexico provides support for the agricultural, livestock and fisheries sector under a series of 
programmes administered by SADER. Since 2019 Mexico's agricultural policy has focused even 
more heavily on achieving food self -suffici ency and supporting small producers. To that end , 
various support programmes were merged, others were abolished and new ones created, the bulk 
of them delivered by SADER (Table  4.4). In 2020 nine programmes were abolished, including 
three that were merged with others.12 The number of changes made during the review period 
makes it difficult to compare the programmes implemented in 2017, the date of the previous 
review, with those currently in place. The programmes are complex as they include components 
and s ubcomponents that change from year to year, as provided for in their rules of operation.13 
Moreover, on occasion a given product or activity receives support under more than one 
programme, for example the Guaranteed Prices Programme for Basic Foods (PGPAB)  and the 
Social and Sustainable Agricultural Markets Programme (AMYS), although the latter was 
apparently in place only in 2019.14 It is not clear how the programmes relate to each other in such 
cases, as under the rules, where there is duplication of prod ucts or components, only the benefits 
granted under one of the programmes may be utilized. Some of the programmes have been 
notified as domestic support to the Committee on Agriculture and others to the Committee on 
Subsidies and Countervailing Measures of  the WTO.15 
 
9 These products include: sugar and products with a high sugar content, coffee, meat and edible offal, 
barley, animal fats, beans, powdered milk, maize, potatoes, waters, swee tened and flavoured, cheese and 
wheat.  
10 The products in question are: coffee, chicken meat, barley, beans, preparations based on dairy 
products, cheeses and chicken and turkey cuts.  
11 Under its trade agreements with: Argentina (5  tariff lines at 2017 HS  8-digit level); Colombia 
(24 lines); Costa Rica (7  lines); Cuba (15  lines); Guatemala (5  lines); Honduras (1  line); Israel (11  lines); 
Japan (29  lines); Peru (22  lines); Uruguay (10  lines) and the CPTPP (20  lines, except for Japan (19) and 
Australia (28)).  
12 These programmes included the: Agri -Food Productivity and Competitiveness Programme; the 
Agriculture Promotion Programme; the Livestock Farming Promotion Programme; the Fisheries and 
Aquaculture Productivity Promotion Programme; the Federative Entity Col laboration Programme; and the 
Agricultural Insurance Programme (AGROASEMEX) (CONEVAL) (2020), Análisis de los programas sociales 
del PEF 2019 -2020. Information viewed at: 
https://www.coneval.org.mx/Evaluacion/IEPSM/Documents/ANALISIS_PEF_2019_2020.pdf#search=Programa
%20de%20Fomento%20a%20la%20Agricultura%2 C%20Ganader%C3  per 
centADa%2C%20Pesca%20y%20Acuicultura . 
13 The rules of operation are set out each year in a decision published in the Official Journal.  
14 Information provided by the authorities.  
15 WTO documents G/AG/N/MEX/55 of 25  October  2021 and G/SCM/N /372/MEX of 12  January 2022.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.18.  The chief goals of the federal programmes to support and promote agricultural and 
fisheries/aquacultural activities include increasing productivity and strengthening marketing 
channels in order to boost supply and reduce dependence on imports, especially with regard to 
strategic foods such as maize, beans, rice, bread wheat and milk. The programmes' coverage is 
national, although their application can vary depending on the level of development of the region 
concerned. Generally, the programmes b enefit producers in the crop -farming, cattle -farming, 
fisheries and aquacultural sectors who need to increase what they produce for their own 
consumption and to generate surpluses. Preference is given to small -scale producers and, for 
some components or su bcomponents, the population in low or very low socio -economic groups, 
municipalities that are highly or very highly marginalized, indigenous and/or Afro -descendant 
groups or communities, and women.16 Under almost all these programmes SADER delivers direct 
transfers or implements price guarantees and supply programmes. One of the programmes is 
geared to driving investment in agri -parks and agri -business based on shared -risk schemes. To 
that end, an unendorsed, unsecured recoverable incentive of up to 80 % of the investment cost of 
the project is provided.17 
4.19.  In addition to the support programmes, aid is also granted to the agricultural sector through 
price subsidies for the electricity used by low -income agricultural producers.18 With regard to 
diesel (until 20 20) and petrol, a fiscal stimulus is announced every month consisting in a cut in the 
rate of  IEPS.19 
Table 4.4 Agricultural support programmes  
Body  Objectives  Type of aid  Beneficiaries  
Production for Wel l-being  Programme (previously Productive PROAGRO)  
SADER  Achieve food 
self-sufficiency  Direct support  Small and medium -sized producers 
of amaranth, rice, cocoa, safflower, 
chia, beans, maize, honey, 
sorghum, soya, bread wheat; small 
coffee and sugar -cane p roducers, 
and dairy farmers  
Guaranteed Prices Programme for Basic Foods (PGPAB)  
SADER  Support rural small 
farmers' production 
activities, raise their 
incomes and 
promote food 
security  Guaranteed prices for 
rice, beans, maize, 
bread wheat and cow's 
milk Agricultural producers of staple 
grains (rice, beans, maize and 
wheat) and milk  
Fertilizers for Wel l-being  Programme  
SADER  Increase the supply 
of chemical and 
biological fertilizers 
in order to improve 
productivity  Free delivery 
of fertilizer 
(max.  600 kg/producer; 
quantity of fertilizer 
varies depending on the 
product).  
In 2019 the maximum 
was 450 kg/ha, 
max. 3 ha/producer  Small and medium -sized producers 
of maize, beans or rice in highly or 
very highly marginalized areas  
Agricu lture, Livestock, Fisheries and Aquaculture Promotion Programmea 
SADER  Increase productivity 
in the agricultural 
sector in a 
sustainable fashion 
through innovation, 
technological 
development and/or 
technology transfer 
in order to contribute 
to food 
self-sufficiency and There are various 
components and 
subcomponents 
providing different 
incentives; e.g. direct 
support and repayable 
support  Small and medium -sized crop 
farmers who own up to 5 ha 
(individual incentives); organized 
crop farme rs with up to 50 ha 
(incentives for collective projects); 
livestock farmers, including small 
farmers, with up to 35 head of 
cattle; investors in agri -parks and 
agri-business  
 
16 Article  61 of the Decision announcing the rules of operation of the Agriculture, Livestock, Fisheries 
and Aquaculture Promotion Programme for the financial year 2022 (Official Journal of 31  December 2021).  
17 Decision announci ng the rules of operation of the Agriculture, Livestock, Fisheries and Aquaculture 
Promotion Programme (Shared Risk Subcomponent) for the financial year 2022 (Official Journal 
of 31 December 2021).  
18 Rural Energy Law (latest amendment on 28  December 2012).  
19 Decision announcing the fiscal stimuli for petrol and diesel in the fisheries and agricultural sectors for 
June 2020 (Official Journal of 29  May 2020).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Body  Objectives  Type of aid  Beneficiaries  
food security  
Livestock Sector Credit Programme [the programme did not run in 2020 or 2021]  
SADER Increase the 
productivity of 
livestock farming  Delivery of dams and 
sires Small livestock farmers  
Livestock Farming Promotion and Livestock Product Quality Standardization Programme  
SADER  Spread innovation 
and technology; 
technology services 
and systems for 
identifying individual 
cattle  Direct support to take 
part in events/training 
(up to MXN 500,000)  Small and medium -sized livestock 
farmers  
Social Milk Supply Programme (LICONSA)  
SADER  Supply milk  Price subsidy  Low-income population  
Rural Supp ly Programme (DICONSA)  
SADER  Distribute basic food 
basket products 
(including foods such 
as rice, maize, maize 
flour, wheat flour, 
beans, coffee, sugar, 
milk, vegetable oil, 
basic biscuits) at 
subsidized prices to 
meet the demand of 
marginalized 
population groups 
living in poverty.  Provision through 
the DICONSA network 
of shops of basic food 
basket products at 
preferential prices, i.e. 
less than the price in 
privately owned local 
shops  Low-income population  
Social and Sustainable Agricultural Markets Programme (AMSYS)b 
SADER  Promote appropriate 
marketing of surplus 
crops  Direct payment as an 
incentive to achieve a 
minimum price or an 
"additional income" in 
order to achieve a 
"target income"  Small and medium -sized produ cers 
of eligible crops by area (e.g. raw 
cotton, Arabica coffee, safflower, 
sunflower, maize, sorghum, soya, 
bread wheat)  
Cereals and Oilseeds Market Management Programmec 
SADER  Promote food 
security through 
market management 
and certainty  Implement instruments 
that allow for 
appropriate risk 
management; 
implement support 
schemes that facilitate 
crop marketing; foster 
greater flexibility in 
product marketing  Producers and purchasers of 
agricultural products  
Small Producers Support Programme  (PAPP)  
First ran in 2016 with six independent components.d 
Merged with the Rural Productivity Programme in 2017.e 
Last ran in 2018.  
SAGARPA  Support for small 
crop farmers  Technology packages 
and technical 
assistance, coverage for 
losses  Agricultural producers in arid and 
semi-arid areas  
a Decision announcing the rules of operation of the Agriculture, Livestock, Fisheries and Aquaculture 
Promotion Programme for the financial year 2022 (Official Journal of 31  December  2021).  
b The programm e was established in 2019 and ran in that year only. Information 
viewed  at: https://www.gob.mx/aserca/acciones -y-programas/programa -de-agrome rcados -sociales -
y-sustentables -2019-196615  and at: http://dof.gob.mx/nota_detalle.php?codigo=5554794&fecha=2
1/03/2019 . 
c Considered in the draft Federal Budget 2020.  Not included in the final budget.  
d SAGARPA, Design Evaluation, Small Producers Support Programme. Information viewed at: 
https://www.agricultura.gob.mx/sites/default/files/sagarpa/document/2018/10/09/1453/09102018 -
s-266-programa -de-apoyos -pequenos -productores.pdf . 
e SAGARPA, Evaluation of Consistency and Outcomes, Small Producers Support Programme. 
Information viewed at:  
https://www.transparenciapresupuestaria.gob.mx/work/models/PTP/programas/sed/evaluaciones/2
017/08s266pccr 17.zip . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Source:  Rules of operation of the Programmes of the Ministry of Agriculture and Rural Development. 
Information viewed at: 
https://www.gob.mx/agricultura/acciones -y-programas/programas -de-la-secretaria -de-agricultura -y
-desarrollo -rural-2022, and CONEVAL (2020), Análisis de los programas sociales del PEF  2019-2020. 
Information viewed at: 
https://www.coneval.org.mx/Evaluacion/IEPSM/Documents /ANALISIS_PEF_2019_2020.pdf#search
=Programa%20de%20Fomento%20a%20la%20Agricultura%2C%20Ganader%C3  per 
centADa%2C%20Pesca%20y%20Acuicultura . 
4.1.2.1   Production for Wel l-being  Programme  
4.20.  Among SADER's domestic support programmes for agriculture, the most important in  terms 
of disbursements is the Production for Wel l-being  Programme introduced in 2019. The budget 
allocated to the programme rose from MXN  9,000  million at its launch in 2019 to 
MXN 13,500  million in 2021. The programme was the result of the merger of two components that 
were in place until 2018: Productive PROAGRO, the most important programme in terms of 
disbursements until 2017, and the Comprehensive Maize and Bean Programme (PIMAF), which 
was part of the Small Producers Support Programme.20 As occurred previously under Productive 
PROAGRO, the Production for Wel l-being  Programme makes direct payments per hectare – or for 
honey, per hive – to producers enrolled in the registers (Table  4.5). Unlike Productive PROAGRO, 
which supported small producers only, t he Production for Well-being  Programme supports small 
and medium -sized producers up to a maximum of 20  hectares.  
Table 4.5 Production for Well-being  Programme 2019 -21 
Year  Product  Type of producer  Characteristics of the crop area 
or hive Aid per hectare 
or hive (MXN)  
Rain-fed Irrigated  
2019  Grains  
(including 
maize, beans, 
bread wheat, 
rice) Small producer 
(PROAGRO)  Up to 5 ha  Up to 0.2 ha  1,600  
Medium -sized 
producer 
(PROAGRO)  Above 5 ha 
and up 
to 20 ha Above 0.2 ha and up 
to 5 ha  1,000  
Small producer 
(PIMAF)  Up to 3 ha  n.a. 1,600  
2020  Grains  
(including 
maize, beans, 
bread wheat, 
rice, 
amaranth, 
chia and/or 
milpa system)  Small producer  Up to 5 ha  Up to 0.2 ha  1,600  
Medium -sized 
producer  Above 5 ha 
and up 
to 20 ha Above 0.2 ha and up 
to 5 ha  1,000  
Coffee  Up to 20 ha  Up to 5 ha  5,000  
Sugar cane  7,300  
2021  Grains  
(including 
maize, beans, 
milling wheat 
and/or rice)  Small producer  Up to 5 ha  n.a. 2,000  
Medium -sized 
producer  Above 5 ha 
and up 
to 20 ha Up to 5 ha  1,200  
Large producer  Above 20 ha  Above 5 ha  1,200  
Amaranth  Small producer  Up to 5 ha  n.a. 3,000  
Medium -sized 
producer  Above 5 ha 
and up 
to 20 ha Up to 5 ha  
Chia Small producer  Up to 5 ha  n.a. 3,000  
Medium -sized 
producer  Above 5 ha 
and up 
to 20 ha Up to 5 ha  
Sugar cane  Small producer  Up to 5 ha  n.a.  7,300  
Medium -sized 
producer  Above 5 ha 
and up 
to 20 ha Up to 5 ha  
 
20 CONEVAL (2020), Evaluación de Diseño con Trabajo de Campo del Programa Producción para el 
Bienestar  2019-2020. Information viewed at: 
https://www.transparenciapresupuestaria.gob.mx/work/models/PTP/programas/sed/evaluaciones/202 0/08u02
3pcdi19.rar . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Year  Product  Type of producer  Characteristics of the crop area 
or hive Aid per hectare 
or hive (MXN)  
Rain-fed Irrigated  
Coffee or 
cocoa  Small producer  Up to 5 ha  n.a. 6,200  
Medium -sized 
producer  Above 5 ha 
and up 
to 20 ha Up to 5 ha  
Honey  Small producer  Up to 35 hives  6,200  
Medium -sized 
producer  More than 35 and up to 100 hives  
n.a. Not applicable.  
Source:  Rules of operation of the SADER Production for Well-being  Programme for the financial 
years  2019,  2020 and 2021. Information viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5548620&fecha=23/01/2019 , 
http://dof.gob.mx/nota_detalle.php?codigo=5585830&fecha=07/02/2020  and 
http://www.dof.gob.mx/nota_detalle.php?codigo=5609033&fecha=28/12/2020  respectively.  
4.1.2.2   Guaranteed Prices Programme for Basic Foods  
4.21.  In 2019, the Food Security Agency (SEGALMEX), a SADER agency, began implementing the 
Guaranteed Prices Programme for Basic Foods  (PGPAB). The budget allocated to the programme 
for 2019 was MXN  6,000  million, while for 2020 it was MXN  10,000  million and 
for 2021 MXN 10,961  million. The leading goals of P GPAB are to increase the incomes of small 
agricultural producers and reduce dependence on imports of staple grains and milk, thus 
promoting food self -sufficiency. The maize (small producers) and beans procured by SEGALMEX at 
guaranteed prices are intended primarily for the supply network run by DICONSA, a State-owned 
social enterprise. SEGALMEX sells the remainder to other institutional programmes or on the open 
market at a price determined by it. The State-owned enterprise LICONSA is responsible for the 
collection and provision of milk at preferential prices.  
4.22.  Together, DICONSA, SEGALMEX and LICONSA contribute to food security by retailing basic 
food basket products. Through the Rural Supply Programme, DICONSA purchases and collects 
basic basket products, in cluding the milk processed by LICONSA and other staple goods and 
hygiene products, and sells them through its network of community -based shops at below -market 
prices to marginalized population groups living in poverty.  
4.23.  The PGPAB pays guaranteed prices for rice, beans, milk, maize and wheat, and provides 
incentives to purchase the risk management instrument (IAR), an insurance that SEGALMEX 
requires in order to grow maize and wheat. The guaranteed prices vary depending on the type of 
product and the size of the area under cultivation and are valid for a maximum volume per 
producer per crop season (Table  4.6). Additionally, for some types of wheat, the incentive is 
granted only if the crop is used by the domestic milling industry. In 2022, in addition to the 
guaranteed price, support of up to MXN  160 per tonne was offered to maize producers to move 
grain from the production unit to the collection centre up to a maximum of 20  tonnes per crop 
cycle; the support is delivered when the producer is paid for the grain .21 Support for productivity is 
available to large producers of rice and wheat for a given volume. SEGALMEX is able to procure 
the product at a price other than the guaranteed price in emergencies, when the bean harvest is 
affected by weather events and th e harvest is not fit for human consumption but nonetheless 
retains a commercial value. If necessary,  SEGALMEX will supply grain for sowing to maize and 
bean producers, on a repayable basis.  
4.24.  According to the decision governing the PGPAB, the guaranteed pric es for maize and beans 
address a market failure resulting from the short harvest period and the fact that there are only a 
few purchasers, who would be likely to determine the price. SEGALMEX acts as a market regulator 
by rectifying that failure and guaran teeing a set price for the maize and beans purchased from 
small producers. Moreover, SEGALMEX negotiates the prices and conditions of sale for small 
producers of maize or beans vis -à-vis other institutions and/or individuals in line with prevailing 
market conditions. Where bread wheat and rice are concerned, the guaranteed prices seek to 
 
21 Decision announcing the rules of operation of the Guaranteed Prices Programme for Basic Foods, 
managed by the Food Security Agency (SEGALMEX) of the Ministry of Agriculture and Rural Development, for 
the financial year 2022 (Official Journal of 31  December 2021).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  foster increased national production by offering producers attractive prices and thus reducing 
dependence on imports. Additionally, the purpose of the incentive offered to medium -sized 
producers of maize is to support them in the face of competition from imported maize and promote 
the use of IARs. 
Table 4.6 Guaranteed Prices Programme for Basic Foods, 2020 -22 
Product  Area  Price per tonne or per litre (MXN)/incentive  Maximum 
volume  
Maize (small 
producer)a Up to 5 ha of 
rain-fed land  2020 -21: 5,610  
2022: 6,278  20 tonnes  
Maize 
(medium -sized 
producer)  Up to 50 ha 
irrigated or 
rain-fed land  2020: 4,150  
2021 -22: incentive to purchase risk management 
instruments (IARs)  600 tonnes  
Beansa Up to 30 ha of 
rain-fed land or 
up to 5 ha of 
irrigated land  2020 -21: 14,500  
2022: 16,000  15 tonnes  
Bread wheat  Unlimited  2020 -21: 5,790  
2022: 6,400  100 tonnesb 
Bread wheat 
(small producer)  Up to 8 ha  2022: 6,900  50 tonnes  
Durum wheat  Unlimited  2020: incentive of 40% of the amount awarded for 
bread wheat (MXN 2,316).  
2021 : for durum wheat for the domestic milling 
industry: support to purchase an IAR.  
Incentives for the state s of Baja California, Sonora 
and El Bajío only.  
2022 : for durum wheat for the domestic milling 
industry: support to purchase an IAR, support to 
cover the differences between the guaranteed price 
and the reference price.  
Incentives for Baja California, Sono ra and El Bajío 
only. 2020:  
50 tonnes  
2021 -22: 
150 tonnes  
Milka Small producer 
(1-35 cows)  
Medium -sized 
producer  
(36-100 cows)  2020 -21: 8.20 
2022: 9.20 25 litres per 
cow per day  
Rice Unlimited  2020 -21: 6,120  
2022: 6,760  120 tonnesc 
Rice (small 
producer)  Up to 8 ha  2022: 7,300  80 tonnes  
a Collection by SEGALMEX or LICONSA.  
b Support for productivity awarded for an additional 200  tonnes after the first 100.  
c Support for productivity for an additional 180  tonnes  
Source:  CONEVAL (2020), Evaluación de Diseño con Trabajo de Campo del Programa Precios de Garantía a 
productos Alimentarios Básicos 2019 –2020. Information viewed at: 
https://www.transparenciapresupuestaria.gob.mx/work/models/PTP/programas/sed/evaluaciones/2
020/08u020pcdi19.rar ; Rules of operation of the Guaranteed Prices Programme for Basic Foods for 
the financial years 2020 and 2021, and Decision announc ing the rules of operation of the 
Guaranteed Prices Programme for Basic Foods, managed by the Food Security Agency (SEGALMEX) 
of the Ministry of Agriculture and Rural Development, for the financial year 2022 (Official Journal 
of 31 December  2021).  
4.25.  Under th e Domestic Milk Purchasing Programme (PALN) of 2004, LICONSA purchases milk, 
primarily from small and medium -sized producers, through its collection centres. LICONSA 
processes the milk and distributes it at a subsidized price to low -income urban and rural 
populations through the Social Milk Supply Programme. LICONSA buys fresh milk (hot or cold) 
and/or whole milk powder at a guaranteed price (of MXN  8.20 per litre in 2020 and 2021 and MXN  
9.20 per litre in 2022), depending on the quality of the milk, workin g with the Guaranteed Prices WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Programme for Basic Foods.22 Despite the rise in the guaranteed price, the budget for the PALN 
has fallen since 2018.23 
4.26.  The aim of the support for the dairy sector is to try and promote and transform domestic 
milk production an d to reduce and even eliminate imports of powdered milk by LICONSA by 
replacing them with domestically produced milk.24 To that end, SEGALMEX and LICONSA have set 
up programmes to improve the efficiency of LICONSA operations, promoting the drying of milk a t 
private industrial facilities with which cooperation agreements are in place. Use of this strategy 
made it possible to increase purchases of milk from small and medium -sized producers from 600 
to 900 million litres annually.25 However, imports of powdered milk have not yet fallen and 
remained steady at around 3 % of the total value of agricultural imports between 2017 and 2020.  
4.27.  The milk purchased by LICONSA is sold to consumers at a preferential price determined 
by LICONSA under  the Social Milk Supply Programme. Households can buy up to four litres of 
fortified milk per week per person enrolled in the list; each household is entitled to a maximum 
of 24 litres per week. As part of this programme, some 900 million litres of fortifi ed milk per year 
have been distributed through 10,262  dairies, with an average saving per litre of milk of 74.7 %; 
on average, 5.9  million people have benefited under the programme.  
4.1.2.3   Agricultural finance and insurance  
4.28.  In 2019 Mexico restructured the developm ent bank to improve coverage, focus on the rural 
population and thus increase financial inclusion. To that end it established the New Comprehensive 
Rural Financing System comprising the National Development Bank, the Shared Risk Trust, the 
Rural Sector Cap italization and Investment Fund and AGROASEMEX, and set up a single window to 
provide the rural population with access to various programmes and financial services, and enable 
them to seek advice and training.26 
4.29.  AGROASEMEX, an insurance company specializin g in the agricultural sector, designs 
insurance schemes to expand market coverage and promotes the involvement of private agents in 
the agricultural insurance market.27 The Agricultural Insurance Programme, which was 
implemented by  AGROASEMEX, was abolishe d in 2021.28 The programme offered a subsidy to 
reduce the cost of premiums for insurance against risks associated with climatic conditions.  
4.2  Energy29 
4.30.  The energy sector is regulated by the Constitution (Articles 25, 27 and 28) and various laws 
promulgated i n 2014, namely: the Hydrocarbons Law30; the Hydrocarbons Revenue Law31; the Law 
 
22 Decision announcing institutional programmes for 2020 -24 of semi -public bodies of the Ministry of 
Agriculture and Rural Development (Official Journal of 28  September 2020), and Handbook of procedures on 
purchase, receipt and payment for domestic milk in LI CONSA, S.A. de C.V. 2018. Information viewed at: 
http://www.liconsa.gob.mx/wp -content/uploads/2018/11/08 -MAN-PROC -ADQ-REC-PAG-LECHE -NAL-12-NOV-
18.pdf . 
23 The budget was: MXN  1,357.53 million (2017), MXN  1,537.19 million (2018), MXN  1,345.44 million 
(2019); and MXN  1,240.8 million (2020) (CONEVAL (undated), Reporte de Datos Generales ). Information 
viewed at: 
https://www.coneval.org.mx/Evaluacion/Documents/EVALUACIONES/FIMyE_19_20/Reporte_Datos_Generales_
FIMyE_19_20.zip . 
24 Decision announcing institutional programmes fo r 2020 -24 of semi -public bodies of the Ministry of 
Agriculture and Rural Development (Official Journal of 28  September 2020).  
25 Decision announcing institutional programmes for 2020 -24 of semi -public bodies of the Ministry of 
Agriculture and Rural Developm ent (Official Journal of 28  September 2020).  
26 National Development Financing Programme 2020 -24 (Official Journal of 5  August 2020).  
27 Decision authorizing the establishment and organization of the insurance company AGROASEMEX 
(Official Journal of 7  June 1 990).  
28 Information provided by the authorities.  
29 No comments were received from the competent authorities in this field.  
30 Hydrocarbons Law (Official Journal of 11 August 2014, as last amended on 20 May 2021) and 
Regulations implementing the Hydrocarbons  Law (Official Journal of 31 October 2014).  
31 Hydrocarbons Revenue Law (Official Journal of 11 August 2014, as last amended on 13 January 2022) 
and Regulations implementing the Hydrocarbons Revenue Law (Official Journal of 31 October 2014, as last 
amended on 22 May 2017).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  on the Mexican Petroleum Fund for Stabilization and Development32; and the Law on the Electricity 
Industry33; and by the Law on Energy Transition of 2015.34 Since the previous review in 2017, the 
Hydrocarbons Law and the Law on the Electricity Industry have been amended to increase the 
market share of State-owned production enterprises, namely, Petróleos Mexicanos (PEMEX) and 
the Federal Electricity Commissio n (CFE).35 The aim of energy policy since 2017 has been to 
reverse the reform initiated in 2013, through which the sector was liberalized in order to allow for 
competition. The government's objective is to "rescue" the sector in order for it to promote the 
country's socioeconomic development.36 It intends for State-owned production enterprises to 
become the dominant operators once again, and for them to become drivers of development and 
contribute to the objectives of energy self -sufficiency, acc ess, supply and transition.37 In 
September  2021, a draft constitutional reform on electricity was tabled which, if approved, would 
further strengthen the role of the State and the CFE in the electricity sector, as it would limit the 
operations of private e ntities.38 
4.31.  In 2013, the energy market was fully liberalized, except for services related to the storage, 
distribution and supply of aviation fuel, which were liberalized in 2018 ( Section 4.4.3.1).39 
Consequently, the participation of private capital, both domestic and foreign, is permitted in all 
energy sector activities, except for those which are reserved to the State under the Constitution, 
and which, despite this, are not considered monopolies. These activities are as follows:  
a. in the hydrocarbons sector : "strategic" exploration and exploitation activities; and  
b. in the electricity sector: operation of nuclear power plants; transmission, distribution and 
control  of the National Electricity System (SEN).40 
4.32.  Foreigners are treated as nationals in activities in  which they are allowed to participate. 
Foreign operators must be established in Mexico to be able to operate in the energy sector.  
4.33.  The activities reserved to the State are run by PEMEX, the CFE and their subsidiaries.41 The 
National Energy Control Centre (CENACE) controls the dispatch of electricity in the SEN.  
4.34.  As in 2017, the main bodies in the sector are: the Ministry of Energy (SENER), the National 
Hydrocarbons Commission (CNH) and the Energy Regulatory Commission (CRE).  
4.2.1   Hydrocarbons  
4.35.  Mexico is one of th e main hydrocarbons producers in the region.42 In 2021, petroleum 
production was 1,664.7  thousand barrels per day (Kb/d) and natural gas production 
 
32 Law on the Mexican Petroleum Fund for Stabilization and Development (Official Journal of 
11 August  2014, as last amended on 6 November 2020).  
33 Law on the Electricity Industry (Official Journal of 11 August 2014, as last amended on 9 Mar ch 2021) 
and Regulations implementing the Law on the Electricity Industry (Official Journal of 31 October 2014).  
34 Law on Energy Transition (Official Journal of 24 December 2015).  
35 ICEX (2020), Ficha Sector México: Hidrocarburos en México . Viewed at: 
https://www.icex.es/ice x/es/navegacion -principal/todos -nuestros -servicios/informacion -de-mercados/estudios -
de-mercados -y-otros-documentos -de-comercio -exterior/guia -negocios -mexico -2020-doc2020860239.html . 
36 National Development  Plan 2019-24. 
37 Sectoral Programme  for Energy  2020-24. 
38 Ministry of Energy. Information viewed at: https://www.gob.mx/sene r/prensa/el -nuevo -esquema -del-
sistema -electrico -nacional -garantizara -el-abastecimiento -continuo -de-electricidad -a-la-poblacion -
mexicana?idiom=es . 
39 General notice related to Transitional Article 9 of the Regulations implementing the Airports Law 
(Official Journal of 21 June 2018).  
40 Articles 27 and 28 of the Political Constitution of the United Mexican States (CPEUM).  
41 PEMEX has three subsidiaries: one for exploration and production; one for logistics; and one for 
industrial processing. The CFE has nine subsidiaries: six for generation; one for transmission; 
one for distribution; and one for marketing (list of semi -public bodies belonging to the federal govern ment 
(Official  Journal of 13 August 2021)).  
42 U.S. Energy Information Administration. Inform ation viewed at: 
https://www.eia.gov/international/analysis/country/mex . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  was 4,740.2  million cubic feet per day (MMcf/d).43 However, production declined during the review 
period, ow ing to the decrease in oil field reserves and the lack of investment in new fields. To 
remedy this situation, PEMEX announced the launch of new investment projects.44 
4.36.  In January -July 2021, oil revenue climbed to MXN  507,517.0  million, which was 60 % (in 
real terms) more than in the same period in 2020, and accounted for 14.9 % of total revenue in 
the public sector. Part of the oil revenue corresponds to the contributions for the Mexican 
Petroleum Fund for Stabilization and Development (FMPED) (Box 4.1). The s trong decline in 
production in 2020 was partially offset by an increase in the price of petroleum on the international 
market. Oil production rebounded in 2021. In 2020, the fall in demand due to the pandemic also 
affected the sector.45 In 2020 and 2021, i n order to support PEMEX, the rate of the profit -sharing 
duty that the company passes on to the FMPED was reduced.46 
Box 4.1 Mexican Petroleum Fund for Stabilization and Development (FMPED)  
The revenue received by the federal govern ment from the exploration, exploitation and marketing of 
hydrocarbons is deposited in the Mexican Petroleum Fund for Stabilization and Development (FMPED), 
through which it is transferred to other funds (stabilizat ion or sectoral funds, or funds with specific 
purposes) and to the Federal Treasury. It also constitutes a savings reserve. The total contributions 
transferred to the different funds may not exceed 4.7% of GDP. The remaining amount is allocated to the 
savings reserve. The reserve began to be established in 2018, as revenue had previously never reached 
4.7% of GDP.  
Source:  Law on the Mexican Petroleum Fund for Stabilization and Development; and the FMPED. Viewed at: 
https://www.fmped.org.mx/administracion -reserva.html#valor_reserva . 
4.37.  Mexic o is a major producer and net exporter of crude oil. However, it is a net importer of 
refined products, and the trade balance in hydrocarbons and their derivatives is in deficit 
(Chart  4.1). This is due to the low existing capacity in the country for refin ing heavy crude oil, 
which is the oil extracted by Mexico. Mexico also exports more than half of the unrefined crude oil 
extracted and imports refined products. The government aims to achieve self -sufficiency. To this 
end, efforts have been made to rehabil itate existing refineries, and a new refinery is being built 
(Dos Bocas). PEMEX also acquired a refinery in Texas (United States).  
 
43 Hydrocarbons Information System of the CNH. Viewed at: https://hidrocarburos.gob.mx ; Senate of 
the Republic (several years), Reporte Trimestral de los Ingresos Presupuestari os. Viewed at: 
http://bibliodigitalibd.senado.gob.mx/handle/123456789/3884 ; and information provided by the authorities.  
44 PEMEX press release of 17 June 2016. Viewed at: 
https://www.pemex.com/en/press_room/press_releases/Paginas/2019 -028-national.aspx . 
45 Senate of the Republic (several years), Reporte Trimestral de los Ingresos Presupuestarios . Viewed 
at: http://bibliodigitalibd.senado.gob.mx/handle/123456789/3884 . 
46 Decree granting tax benefits to the taxpayers indicated therein (Official Journal of 19 February 2021).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Chart 4.1 Hydrocarbons and petroleum products trade balance, 2017 -21 
 
Source : WTO Secretariat, on the basis of information provided by the authorities.  
4.38.  The main market for hydrocarbons is almost exclusively the United States (Table 4.7). The 
main petroleum products imported by Mexico are gasoline, diesel and liquefied petroleum ga s 
(LPG), which 8 out of 10 households use as fuel.47 The majority of these imports benefit from 
preferential treatment (Table 4.7).  
Table 4.7 Trade in hydrocarbons, 2020 and 2021  
(%) 
Exports  2020  2021  
(June)  
2709. Petroleum oils and oils obtained from bituminous minerals, crude    
United States  58.8 58.2 
Middle East n.e.s.  27.2 27.6 
Other Europe n.e.s.  14.0 14.2 
Other  0.0 0.0 
2710. Petroleum oils and oils obtained from bituminous minerals, other 
than crude    
United States  60.0 68.5 
Panama  31.7 26.5 
Japan  2.6 0.0 
EU-27 1.4 0.3 
Republic of Korea  0.7 0.0 
Other  3.7 4.8 
2711. Petroleum gases and other gaseous hydrocarbons    
United States  68.1 99.7 
Morocco  30.6 0.0 
Belize  0.7 0.0 
Costa Rica  0.3 0.3 
Ecuador  0.1 0.0 
Other  0.1 0.0 
 
 
47 National Household Survey on Energy Consumption 2018 of the National Institute of St atistics and 
Geography (INEGI). Viewed at: Encuesta Nacional sobre Consumo de Energéticos en Viviendas Particulares 
(ENCEVI) 2018 (inegi.org.mx ). 
05,00010,00015,00020,00025,00030,00035,00040,00045,000
05,00010,00015,00020,00025,00030,00035,00040,00045,000
2017 2018 2019 2020 2021
Imports (USD million)Exports (USD million)Exports (left-hand scale)
Crude oil (HS 2709)
Natural gas (HS 2711)
Petroleum products (HS 2710)
Imports (right-hand scale)
Crude oil (HS 2709)
Natural gas (HS 2711)
Petroleum products (HS 2710)WT/TPR/S/429 /Rev.1  • Mexico  
 
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  (%) 
Imports  2020  2021  2020  2021 (June)  
Preference  No preference  Preference  No preference  
2710. Petroleum oils and oils obtained 
from bituminous minerals, other than 
crude  55.1 44.9 60.9 39.1 
United States  91.0 92.3 60.0 40.0 65.1 34.9 
EU-27 5.4 4.6 4.0 96.0 4.6 95.4 
China  2.2 0.8 0.0 100.0  0.0 100.0  
Republic of Korea  0.4 0.6 2.9 97.1 1.9 98.1 
Canada  0.4 0.7 79.6 20.4 84.0 16.0 
Other  0.5 1.0 1.3 98.7 1.3 98.7 
2711. Petroleum gases and other 
gaseous hydrocarbons  47.0 53.0 44.5 55.5 
United States  95.4 97.0 46.4 53.6 43.0 57.0 
Canada  2.7 2.8 99.2 0.8 100.0  0.0 
Trinidad and Tobago  1.1 .. 0.0 100.0  .. .. 
Nigeria  0.3 .. 0.0 100.0  .. .. 
Indonesia  0.2 0.2 0.0 100.0  0.0 100.0  
Other  0.4 0.0 0.0 100.0  0.0 100.0  
.. Not available.  
Source:  WTO Secretariat.  
4.39.  In order to import and export hydrocarbons and their derivatives, a prior permit issued by 
the Ministry of Energy (SENER) is required. In 2020, new rules for obtaining permits were issued.48 
These rules established new requirements for obtaining permits.49 They included new products 
(butane and propane) requiring a permit, added further grounds for revocation, and established 
the possibility to cancel a permit. However, the period of validity of permits was maintained. The 
new rules eliminated the possibili ty of requesting a prior permit for a duration of 20 years, and 
instead introduced a maximum period of validity of five years. To obtain a five -year prior permit, 
operators must demonstrate that they have a contract for a period of five years. The prior pe rmits 
granted for  20 years remain valid.  
4.40.  In 2017, the price controls on gasoline, diesel and LPG were eliminated. However, in 2021, 
as a transitional emergency measure, the price control on LPG was reintroduced ( Section 3.3.4.2). 
Mexico continues to grant a tax incentive for the consumption of gasoline and diesel, which 
consists of a reduced rate of IEPS (special tax on production and services).50 
4.41.  During the review period, the requirements for operating in the hydrocarbons sector did not 
change substantiall y (Table 4.8). The State has the power to award allocations, which grant PEMEX 
exclusive exploration and exploitation rights51, and contracts for exploration and exploitation. 
Contracts are awarded through tenders and may be of four types.52 PEMEX and priv ate companies 
may participate in tenders individually or in partnerships.53 From 2013 to date (May  2022), Mexico 
has held three rounds of tenders. The third round was launched in 2017 and cancelled in 2018.54 
 
48 Decision establishing which goods imports an d exports are regulated by SENER (published in the 
Official Journal of 26 December 2020), which repealed the Decision published in the Official Journal 
of 29 December 2014 (and the amendments thereto of 30 December 2015, 8 September 2017, 
4 December  2017 a nd 22 February 2019).  
49 For example, in order to export, operators are required to demonstrate that supply in the domestic 
market is not at risk. In order to import, operators must comply with the minimum storage requirements.  
50 The percentages of the ince ntive are published periodically in the decisions of the Ministry of Finance 
and Public Credit (SHCP). See, for example, the Decision announcing the percentages and amounts of the tax 
incentive, as well as the reduced IEPS rates applicable to the fuels ind icated, corresponding to the period 
specified (Official Journal of 11 February 2022).  
51 Article 4 of the Hydrocarbons Law.  
52 There are four types of contract: shared production contracts; licensing contracts; profit -sharing 
contracts; and service contracts  (Hydrocarbons Revenue Law).  
53 However, in some instances, the CNH may require PEMEX to participate in the tender. For example, 
if PEMEX were able to obtain technology transfer or if cross -border deposits were discovered (Articles 16 -17 of 
the Hydrocarbons Law).  
54 Rondas México . Viewed at: https://rondasmexico.gob.mx . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table 4.8 Requirements for operating in the hydrocarbons sector, 2017 -22 
Activities  Institution  Requirement  Beneficiary  Initial duration  
(maximum duration)  
Exploration and 
exploitation  Ministry of 
Energy 
(SENER)  Allocation  PEMEX  Exploration: 25 years (50 years); 
exploitation: 20 years (45 years)  
National 
Hydrocarbons 
Commission 
(CNH)  Contract  PEMEX and 
private 
companies  25-35 years (40 -50 years)  
Farm-out 
agreement  .. 
Transport  Energy 
Regulatory 
Commission 
(CRE)  Permit  PEMEX and 
private 
companies  30 years (45 years)  
Storage  
Refining  SENER  
Processing of natural 
gas 
Distribution  CRE 
Marketing  
Retail  
.. Not available.  
Source:  Hydrocarbons Law, and WTO document WT/TPR/S/352/Rev.1 of 23  June 2017.  
4.42.  PEMEX also participates in farm -out agreements with private entities for the exploration and 
exploitation of oil and gas fields. These farm -out agreements are not awarded through tenders but 
are the result of a conversio n ("migration") process for allocations. PEMEX uses this type of 
contract for projects in which it is necessary to diversify investments, share risks and have access 
to new technologies and best practices for sustainability.55 The CNH selects private partn ers 
though tenders.56 In 2018, the tender process, through which partners were to be chosen to 
participate in several of these contracts, was suspended.  
4.43.  The contracts are subject to a local content requirement.57 The minimum percentage of local 
content dep ends on the activity (exploration or exploitation) and the type of field (onshore fields, 
shallow waters, deep waters and ultra -deep waters) (Transitional Articles 46 and 24 of the 
Hydrocarbons Law). The Ministry of Economic Affairs established a methodolo gy for measuring 
percentages in 2014 (for onshore fields and shallow waters). This methodology was revised in 
2015 and in 2016 (for deep waters and ultra -deep waters). The methodology takes into account: 
the origin of the agreed goods and services; use of local labour; training of local staff; investment 
in local infrastructure; and technology transfer. The percentage of local content increases in 
accordance with the development of the project: 3 %-26% for exploration and 25 %-38% for 
exploitation, except in deep water and ultra -deep water fields for which a lower percentage is 
established (4 %-10%), owing to the fact that the necessary technology may not be available in 
Mexico.58 The Ministry of Economic Affairs is responsible for verifying compliance with the  local 
content requirement.59 
4.44.  For other activities (transport, storage, refining, processing of natural gas, distribution, 
marketing and retail) a permit issued by SENER or the CRE is required (Table 4.8). Since 2021, 
permits have not been granted if opera tors are unable to store at least half the equivalent of 
five days of sale for petrol and diesel, and three days for jet fuel. Legislation allows for the 
revocation of existing permits if the requirements cannot be met.60 Permits, like allocations and 
exploration and exploitation contracts, are subject to a minimum local content requirement.61 
 
55 Pulso Energético  of 23 February 2021. Viewed at: https://pulsoenergetico.org/blog -post/beneficios -
economicos -de-los-contratos -petroleros . 
56 Article 13 of the Hydrocarbons Law.  
57 WTO document WT/TPR/S/352/Rev.1 of 23 June 2017.  
58 WTO document WT/TPR/S/352/Rev.1 of 23 June 2017.  
59 Decision establishing provisions for the verification of compliance with the local content obligations of 
contractors and allocation holders, with regard to exploration and extraction activities carried out in the 
national territory (Official Journal of 23 Jan uary 2020).  
60 Article 51 of the Hydrocarbons Law amended through the Decree published in the Official Journal 
of 4 May 2021; Fourth Transitional Article of the Decree published in the Official Journal of 4 May 2021; Public 
Policy on the Minimum Storage of Petroleum Products ; and SENER. Viewed at: WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.45.  Furthermore, since 2021, in accordance with the Hydrocarbons Law, permits may be 
suspended in the case of an "imminent threat to national security, energy security or  the national 
economy". However, these concepts are not defined in the Law. The duration of the suspension is 
decided by SENER or the CRE. During this period, SENER or the CRE takes over operations, using 
the infrastructure and staff employed by the operat or, or may hire third parties. Permit holders 
may request that the suspension be lifted, provided that they demonstrate that the conditions that 
prompted the suspension were remedied. If, after the suspension period has ended, operators are 
not in a positi on to continue with their obligations, the permit is cancelled.62 
4.46.  Despite the fact that, for eight years, a certain level of competition has been allowed in the 
hydrocarbons market, PEMEX still maintains a dominant position. PEMEX is the main producer, 
importer and exporter of hydrocarbons and petroleum products, and also owns most of the 
infrastructure for transport and storage. PEMEX is also the owner of all the refineries in the 
country, and controls retail.  
4.47.  In accordance with the Hydrocarbo ns Revenue Law, PEMEX has to pay, on a monthly basis, 
a hydrocarbons extraction duty calculated on the basis of the value of the product extracted, which 
varies according to the product concerned (Table 4.9), and must also pay, on an annual basis, the 
profit-sharing duty. The profit -sharing duty is calculated by applying a rate of 54 % to the 
difference between the value of the hydrocarbons extracted and the deductions permitted under 
the Law, with the inclusion of that consumed by PEMEX, and losses due to s pillage or burning.63 
Table 4.9 Hydrocarbons extraction duty, 2021  
Product  Rate/base value of product  Price  
Oil 7.5%  Price/barrel <USD 48  
Rate equivalent to ((0.125 x oil price) +  1.5%)  Price/barrel ≥USD 48  
Natural gas associated with 
oil production  Rate equivalent to (price/100)  n/a 
Natural gas not associated 
with oil production  0% Price/million BTU ≤USD 5  
 Rate equivalent to (price -USD 5) 
x 60.5))/price of natural gas)  Price/million BTU >USD 5 <USD 5.5  
 Rate equivalent to (price/100)  Price/million BTU ≥USD 5.5  
Condensates  5% Price/barrel <USD 60  
 Rate equivalent to ((0.125 x price of 
condensates) - 2.5) Price/barrel ≥USD 60  
n/a  Not applicable.  
Note:  BTU = British thermal unit.  
Source:  Hydrocarbons Revenue Law (Official Journal of 9  December  2019).  
4.48.  The authorities consider that PEMEX is of strategic importance for Mexico, as it is a 
profitable public asset and is the country's largest taxpayer. The federal g overn ment considers it 
important to maintain profitability and ensure the sustainability of the company in the long term. 
To this end, the Ministry of Finance and Public Credit (SHCP) has given priority to resolving the 
structural challenges faced by PEMEX , namely: (i) the high tax burden; (ii) the high level of 
financial debt and its financial cost; and (iii) the lack of resources to make the investments 
necessary for maintaining the required levels of production. The government has set three key 
 
https://www.gob.mx/sener/es/articulos/politica -publica -de-almacenamiento -minimo -de-petroliferos -
247326?idiom=es . 
61 Article 126 of the Hydrocarbons Law. The methodology for calculating the percentage of local content 
in permits is the same as the one established by SENER for allocations and contracts.  
62 Article 59 bis of the Hydrocarbons Law added through the Decree published in the Official Journal 
of 4 May 2021.  
63 The deductions permitted under the Law are: (a) 100 % of the original amount of the investments 
made for exploration, secondary recovery and non -capitalizable maintenance; (b) 25 % of the original amount 
for the development and extraction of oil or natural gas deposits, including import duties; (c) 10 % of the 
original amount of investments in transport and storage infrastructure for activities covered by the allocation, 
such as oil pi pelines, gas pipelines, and storage terminals and tanks; (d) the costs and expenses of 
exploration, transport and delivery necessary for the extraction of oil and natural gas deposits; and 
(e) the hydrocarbons extraction duty, paid during the corresponding period (Article 40 of the Hydrocarbons 
Revenue Law (Official Journal of 9 December 2019)).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  objective s to overcome these challenges: (a) reduce the profit -sharing duty from 54 % to 40 %; 
(b) reduce PEMEX's debt through capital contributions from the federal govern ment; and 
(c) reduce PEMEX's refinancing risk. In this context, in December  2021, PEMEX announc ed a 
repurchase and liability management operation with the aim of reducing the risk of refinancing and 
the amount of the debt.64 The federal govern ment would contribute USD  3.5 billion to support this 
transaction. Furthermore, mechanisms and a financial s tructure will be implemented to enable the 
public sector to co -invest in exploration and extraction projects. Between 2017 and 2021, PEMEX 
did not receive any subsidies or transfers.65 
4.49.  Through the liberalization of the trade in hydrocarbons in 2013, the Hy drocarbons Law 
enabled  PEMEX to continue marketing exclusively until 31  December  2017. Under the Law, 
in 2018, the CNH tendered and awarded the contract for marketing natural gas to the CFE, and the 
contract for marketing crude oil to a foreign company. Th e contract with the CFE was signed for 
one year and was extended for one additional year. The contract for crude oil was signed for 
three  years. In November  2020, when the contracts expired, the CNH awarded a contract for 
marketing oil and gas directly to PEMEX. This contract is valid for five years.66 
4.2.2   Electricity  
4.50.  The generation of electricity in nuclear power plants and the transmission and distribution of 
electricity are activities reserved to the State, for which the Federal Electricity Commission (CFE) 
enjoys exclusive rights. However, the CFE may grant contract s to private companies in order for 
them to build, expand and maintain infrastructure. These contracts are awarded through tenders 
and are subject to a local content requirement.67 The private sector and the CFE participate in the 
generation and marketing (supply) of electricity. To generate and market electricity, a permit from 
the Energy Regulatory Commission (CRE) is required.68 However, the CFE is the sole entity that 
has permission to market electricity for basic users.  
4.51.  The Law on the Electricity Indus try prohibits vertical and horizontal integration.69 This 
provision applies to both the CFE and private companies in the sector. In 2016, the CFE's activities 
were separated, with the creation of several subsidiaries (six for generation; one for transmissi on; 
one for distribution; and two for supply).70 In 2019, the provisions on the restructuring of the 
CFE's activities to reduce costs and improve management were amended.71 While the purpose of 
this change is to create a more efficient system, it also open s up the possibility for the CFE's 
activities to be reinstated, in order to once again strengthen its position in the sector.  
4.52.  The CRE continues to regulate transmission, distribution and marketing tariffs. Qualified 
users (whose demand is greater than or e qual to 1 MW) may purchase electricity directly from 
generating companies at an agreed price.  
 
64 SHCP press release No. 74 of 6 December 2021. Viewed at: 
https://www.gob.mx/shcp/prensa/comunicado -no-74-hacienda -anuncia -estrategia -de-apoyo -en-favor-de-la-
sostenibilidad -de-pemex . 
65 Banxico Economic Information System, " Ingresos y Gastos de PEMEX ". Viewed at: 
https://www.banxico.org.mx/SieInternet/consultarDirectorioInternetAction.do?accion=consultarCuadro&idCuad
ro=CG4& sector=9&locale=es . 
66 Onexpo Nacional news item of 20 November 2020. Viewed at: 
https://www.onexpo.com.mx/NOTICIAS/DEVUELVEN -A-PEMEX -COMERCIALIZACION_m5ezD ; and Re forma 
news item of 18 November 2020. Viewed at: 
https://www.reforma.com/aplicacioneslibre/preacceso/articulo/default.aspx?__rval=1&urlredirect=https://ww
w.reforma.com/adjudica -cnh-venta -de-crudo -a-filial-de-pemex/ar2073426?referer= --
7d616165662f3a3a6262623b727a7 a7279703b767a783a --. 
67 Article 30 of the Law on the Electricity Industry. In 2018, SENER determined the methodology for 
measuring the percentage of local content. The Decision was published in the Official Journal of 28 June 2018.  
68 Article 12 of the Law o n the Electricity Industry, as amended through the Decree published in the 
Official Journal of 9 March 2021.  
69 Article 8 of the Law on the Electricity Industry.  
70 Terms for the strict legal separation of the Federal Electricity Commission (CFE) (Official Journal 
of 11 January 2016).  
71 Terms for the strict legal separation of the Federal Electricity Commission (Official Journal 
of 11 January 2016) and Decision amending the terms for the strict legal separation of the Federal Electricity 
Commission , published on 11 January 2016 (Official Journal of 25 March 2019).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.53.  The electricity used by low -income agricultural producers and domestic users is 
subsidized.72 
4.54.  In 2021, the Law on the Electricity Industry was amended to change t he order in which 
generating companies can dispatch their production on the grid.73 However, the reform was 
suspended, as the private sector filed an appeal on grounds of unconstitutionality with the 
Supreme Court of Justice of the Nation (SCJN). The autho rities indicated that, in April  2022, the 
SCJN had dismissed the appeal. The reform was therefore approved but has yet to be 
implemented. The reform seeks to adopt a model that ensures the security of the electricity 
dispatch, as power plants use mainly re newable sources, which may create problems of 
intermittency in production and, therefore, compromise the dispatch.74 As a result, priority is given 
to the dispatch of electricity produced by the CFE's plants, whether they are hydroelectric plants or 
plants  using conventional sources of energy. Although this change seeks to guarantee supply, and 
strengthen the CFE, it could discourage private investment in renewable energy, by creating 
greater uncertainty for private operators.  
4.55.  Mexico promotes the use of cle an energy sources through clean energy certificates (CEL), 
and it set clean energy generation targets of 25 % in 2018, 30 % in 2021, 35 % in 2024, 40 % in 
2035 and 50 % in 2050.75 However, the changes to the order of the aforementioned electricity 
dispatch and the new rules for the granting of clean energy certificates (Box 4.2) could discourage 
private investment in renewable energies, which would make it difficult to meet the targets set. In 
this regard, it is important to highlight that currently the CFE does  not operate any solar or 
photovoltaic plants, and does not appear to have any plans to invest in this type of project.76 
Box 4.2 Clean energy certificates (CEL), 2017 -2022  
Clean energy certificates (CEL) are d ocuments issued by the CRE which guarantee that a certain quantity of energy is 
produced using clean energy sources. These certificates are granted to power generating facilities for each megawatt -hour 
(MWh) produced using clean energy sources. To prove th at their energy is clean, companies selling electricity to basic users 
have to purchase certificates on the wholesale electricity market, for the percentage of clean energy that they are selling.  
In accordance with the Law on the Electricity Industry, the  CRE grants clean energy certificates to: (1)  plants  that began to 
operate as from 2014 (all private); and (2) CFE plants which were operating in 2014 and which meet the minimum 
investment requirement to increase their production using clean energy sources . In 2014, none of the plants operated by 
the CFE met this requirement. However, as from 2019, the CRE began to grant clean energy certificates to all plants 
producing clean energy, regardless of any requirements, which benefit the CFE plants that did not qualify in 2014.  
A minimum percentage of electricity sold by companies to basic users must be produced using clean energy sources. In 
2022, this requirement is 13.9%. As was the case in 2017, the CFE is the only company that sells electricity to basic users. 
To prove compl iance with this minimum requirement, the CFE must purchase a number of clean energy certificates 
equivalent to 13.9% of the energy sold. If the CFE does not meet the requirement, the CRE may issue it with a fine.  
Clean energy certificates were sold on the  wholesale electricity market until 2018 through auctions or contracts. The 
auctions were suspended in 2018, and since then sales have been carried out solely through contracts, at an agreed price. 
This resulted in a price increase. However, since 2019, as  a result of granting clean energy certificates to all plants 
generating clean energy, the supply of certificates increased and, in principle, the price decreased. While this enables the 
CFE to purchase clean energy certificates at a lower cost, it could d iscourage private investment in plants using clean 
energy.  
Source:  Article 126 of the Law on the Electricity Industry, as amended through the Decree published in the 
Official Journal of 9  March  2021; Federal Economic Competition Commission (COFECE) (2021) , 
Transición hacia mercados competidos de energía: Los Certificados de Energías Limpias en la 
industria  eléctrica  mexicana . Viewed  at: https://www.cofece.mx/wp -content/uploads/2021/05/CEL_
doc_vb2.pdf ; National  Energy  Control  Centre  (CENACE).  Information  viewed  at: https://www.cenace
.gob.mx/Paginas/SIM/MercadoCEL.aspx ; and research by the Centre for Economic and Budgetary 
Research (CIEP). Viewed at: https://ciep.mx/nCB1 . 
 
72 Rural Energy Law (Official Journal of 30 December 2002, as last amended on 28 December 2012), 
and information provided by the authorities.  
73 Article 101 of the Law on the Electricity Ind ustry, amended through the Decree published in the 
Official Journal of 9 March 2021; and the Decision issuing the Policy on Reliability, Safety, Continuity and 
Quality in the National Electricity System (Official Journal of 15 May 2020).  
74 Strategic  Notes  of the Senate,  No. 128, March  2021.  Viewed  at: http://bibliodigitalibd.senado.gob.mx
/bitstream/handle/123456789/5162/Reforma%20LIE_20210312.pdf?sequence=1&isAllowed=y ; and BBVA 
Research  Economic  Analysis,  8 February  2021.  Viewed  at: https://www.bbvaresearch.com/en/publicacio nes/m
exico-changes -in-electricity -industry -law-discourage -clean-and-less-expensive -energies . 
75 Electricity Law ; and Law on Energy Transition (Official Journal of 24 December 2015).  
76 Mexican Institute for Competitiveness (IMCO) note, 8 November 2020. Viewe d at: 
https://imco.org.mx/cambiar -el-criterio -de-despacho -del-mercado -electrico -mayorista -abona -a-un-entorno -
de-incertidumbre -en-detrimento -de-la-competitividad -del-sector -y-del-pais. WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.3  Manufacturing  
4.56.  The manufacturing secto r continues to be of significant importance for the Mexican 
economy, in terms of its contribution to both GDP and international trade. The sector's average 
contribution to  GDP was 17.3 % between 2016 and 2020, and 18 % in 2021 (Table 4.10). The real 
growth r ate for the sector is below that of the domestic economy. During the period 2016 -21, the 
sector expanded at an average annual rate of 0.6 % in real terms, which was greater than GDP 
growth (0.1 %). The sector, like the rest of the economy, contracted sharply  in 2020 as a result of 
the health crisis, and began to recover in 2021 (Table 4.10).  
4.57.  The Mexican manufacturing sector is highly diversified. The main subsectors in terms of 
their contribution to manufacturing GDP continue to be the food industry (22 % in 2020 and 21 % 
in 2021) and the production of transport equipment (20.9 % in 2020 and 19.17 % in 2021), which 
is Mexico's main export item, followed by the computer and communication equipment industry 
(9.3% in 2020 and 8.7 % in 2021), which is also an important  export item (Table 4.10).  
Table 4.10 Main indicators for the agricultural sector, 2016 -21 
 
2016  2017  2018  2019  2020  2021  
Share of total GDP (% at current prices)  17.2 17.4 17.5 17.3 17.3 18.0 
Real growth rate (%, at constant prices)  1.6 2.8 1.8 0.2 -9.4 8.6 
Main sectors contributing to GDP  
Share of manufacturing GDP (% at current prices)  
 Food industry  20.8 20.2 19.9 20.2 22.0 21.0 
 Transport equipment  21.4 22.4 22.5 22.6 20.9 19.7 
 Computer and communication equipment, electronic 
components  9.3 9.0 8.9 9.4 9.3 8.7 
 Basic metal industries  5.8 5.9 6.0 5.6 5.9 7.1 
 Beverages and tobacco industry  6.0 5.9 6.0 6.3 6.4 6.4 
Real growth rate (%, at constant prices)  
 Food industry  3.3 2.6 2.9 2.0 0.1 1.8 
 Transport equipment  1.1 10.3 5.1 -0.1 -19.3 8.9 
 Computer and communication equipment, electronic 
components  1.4 4.4 -0.4 5.1 -8.5 9.8 
 Basic metal industries  1.4 -0.6 -2.0 -3.5 -7.2 10.1 
 Beverages and tobacco industry  7.5 3.1 4.4 3.2 -7.3 9.8 
Employment (% of total working population)  
 Manufacturing industries  16.3 16.8 16.8 16.7 16.5 16.5 
Manufacturing sector according to the WTO definition  
Exports  
Values (USD million)  316,938  347,171  374,745  387,195  348,987  409,779  
Share of total exports (%)  84.8 84.8 83.1 84.1 83.7 82.9 
Growth rate (%)  -2.2 9.5 7.9 3.3 -9.9 17.4 
Most important products, according to HS chapter (% of total manufacturing)  
 87. Motor vehicles, tractors  27.7 29.3 30.8 31.3 28.8 27.9 
 85. Electrical machinery and equipment; image 
 and sound recorders and reproducers  24.1 23.5 21.9 20.7 21.5 21.2 
 84. Nuclear reactors, boilers, machinery and 
 mechanical appliances  19.4 19.0 20.1 20.8 21.5 20.8 
 90. Optical, photographic and precision 
 instruments and apparatus; medical or surgical 
 instruments and apparatus  5.1 5.0 5.1 5.1 5.3 5.0 
 39. Plastics and articles thereof  2.6 2.6 2.5 2.4 2.6 2.8 
Imports  
Values (USD million)  329,701  352,663  384,598  378,252  322,781  422,410  
Share of total imports (%)  85.2 83.9 82.8 83.1 84.3 83.5 
Growth rate (%)  -2.2 7.0 9.1 -1.7 -14.7 30.9 
Most important products, according to HS chapter (% of total manufacturing)  
 85. Electrical machinery and equipment; image 
 and sound recorders and reproducers  25.5 24.3 24.7 25.1 25.7 24.0 
 84. Nuclear reactors, boilers, machinery and 
 mechanical appliances  20.3 20.1 20.1 20.3 20.4 18.7 
 87. Motor vehicles, tractors  11.2 11.8 11.2 11.3 9.9 9.3 
 39. Plastics and articles thereof  6.7 6.6 6.6 6.5 6.8 7.0 
 90. Optical, photographic and precision 
 instruments and apparatus; medical or surgical 
 instruments and apparatus  4.4 4.3 4.0 4.3 4.9 4.8 
Manufacturing trade balance (USD million)  -12,763  -5,492  -9,853  8,943  26,206  -12,631  
Source:  National Institute of Statistics and Geography (INEGI), Economic Information Bank (BIE), 
Short -term economic indicators and national accounts; Bank of Mexico, Economic Information 
System (SIE); and trade data provided by the authorities.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.58.  During the period 2016 -21 (most recent data), manufacturing exports (WTO classification) 
accounted for over 83.8 % of Mexico's total exports, and grew at an annual average rate of 5.3 %. 
Despite the diversification of the manufacturing sector, motor vehicles and tractors continue to be 
the main export item, representing 27.3 % in 2016, and 27.9 % in 2021, of manufacturing exports, 
followed by office and telecommunications equipment, and elect rical and non -electrical machinery 
(23.7 % in 2016 and 21.2 % in 2021). Over 80 % of manufactured goods are exported to the 
United  States. Imports also originate mainly in this market, followed by China which, since 2016, 
has continued to gain importance as a  market for the purchase of electrical machinery and 
appliances.  
4.59.  The tariffs applied to manufactured products (WTO definition) are relatively low, with an 
average MFN tariff of 4.6 % in 2016 and 5.9 % in 2021. The industries with the highest tariffs 
include food preparations (18.8 % in 2021), footwear (14.4 %) and textiles (12.8 %). Machinery and 
appliances, which are Mexico's most important manufacturing imports, have an average applied 
tariff of 4.2 %, lower than the average, and transport equipment, which is t he main export item, is 
protected by an average tariff of 8.6 %. 
4.60.  Mexico continues to maintain unilateral quotas for imports of certain manufactured 
products, including polyester (textiles), motor vehicles and toys (Table  A3.3). Under various 
preferential ar rangements (for example, the agreements with Argentina, Brazil, Cuba, El Salvador, 
the EU, Guatemala, Peru and Uruguay), Mexico also negotiated preferential quotas for some 
manufactured products which, however, are not used.  
4.61.  The anti -dumping measures impos ed by Mexico during the review period mostly affected 
imports of manufactured products (96 %). Of the 74 measures in force in 2021 (June), 52 affected 
base metals. Electrical machinery and appliances, plastics and chemicals were also subject to 
anti-dumping  measures. Base metals, as well as textiles and footwear, are also subject to 
automatic licensing (automatic permits) and non -automatic licensing (prior permits) for imports, 
while chemicals are only subject to non -automatic licensing. In Mexico, both type s of licensing can 
be used at the same time, as they serve different purposes ( Section 3.1.6).  
4.62.  Mexico continues to grant tax concessions, under different programmes, to the 
manufacturing sector, such as the programme for the manufacturing, maquila and expo rt services 
industry (IMMEX), to promote exports, and the sectoral promotion (PROSEC)  programmes , to 
promote competitiveness, and thus increase the integration of Mexican production into the global 
market.77 None of these programmes underwent substantial c hanges during the review period. 
Companies may be eligible for both the IMMEX programme and a PROSEC programme 
simultaneously ( Section  3.3.1).  
4.63.  The IMMEX programme  continues to be of great importance for Mexico, particularly for the 
manufacturing sector. Du ring the period under review, the number of companies operating under 
the IMMEX programme rose from 5,024 in 2016 to 5,191 in 2021. In 2021, these companies 
reported a total revenue of USD  293.4  million (USD  211.5  million in 2016). Of this total, 62 % 
corresponded to foreign sales, and the rest (38 %) was national revenue. The main imports and 
exports under the programme were machinery, mechanical appliances or electrical goods under 
HS chapters 84 and  85, which is consistent with the functioning of a m aquila regime. In 2016, 
exports of these goods accounted for 56.4 % of total exports, and 56.1 % in 2021, while imports 
accounted for 52.3 % of total imports in 2021 (Chart 4.2).78 Furthermore, the companies included 
in the IMMEX programme provided, on averag e, employment for 2.6  million workers during the 
period 2017 -21. 
4.64.  The PROSEC programmes have not changed substantially since they were launched.79 
Each PROSEC programme allows for the importation, with a preferential tariff, of the inputs and 
machinery requ ired to produce specific goods, regardless of whether the final product will be 
consumed on the domestic market or exported. Each PROSEC programme lists the inputs by tariff 
line, showing the corresponding preferential tariff.  
 
77 WTO document G/SCM/N/372/MEX of 12 January 2022.  
78 Information provided by the authorities.  
79 Decree establishing various sectoral p romotion programmes (as last amended 
on 29 November  2012).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.65.  The PROSEC programmes contain ing the largest number of inputs with preferential tariffs 
are those benefiting the automotive and automotive parts industry, the electronics industry and 
the electricity industry. In 2021, the most common preferential tariff rates granted under the 
PROSEC  programmes were 0 % and 5 %, which were applied to 76.2 % and 19.1 % of the tariff lines 
covered, respectively.  
Chart 4.2 Exports and imports under the IMMEX programme by main HS chapters, 2016 
and 2021  
(% of IM MEX total exports or imports)  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
4.66.  Industrial policy is set out in the National Development Plan 2019-24 and in the Sectoral 
Programme for the Economy  2020-24.80 Both programmes place a special emphasis on the need  
to increase the local content of "strategic sectors" and on the development of the most 
marginalized regions of the country, SMEs, the knowledge industry and government procurement 
as a tool to promote industrialization. The objectives of the policy will be achieved through the 
support provided to companies by means of programmes such as IMMEX and PROSEC, the 
industrial productivity and competitiveness programme  (PPCI) and the software industry 
developme nt programme (PROSOFT). Support will also be provided by Bancomext, as a pillar of 
financing ( Section 3.3.1).  
4.4  Services  
4.4.1   Financial services  
4.67.  The Mexican financial system is regulated and supervised by the Bank of Mexico (Banxico) 
and the Ministry of Finance a nd Public Credit (SHCP). The SHCP conducts its supervision through 
three commissions: (a) the National Banking and Securities Commission (CNBV), which regulates 
and supervises the institutions forming the country's financial system, including lending 
institutions, popular savings and loan institutions81, brokerage firms, investment funds, credit 
unions, development entities (public development trusts and development agencies) and other 
auxiliary credit institutions and organizations; (b) the National Insura nce and Sureties Commission 
 
80 National Development  Plan 2019-24 (Official Journal of 12 July 2019) and the Sectoral Progra mme for 
the Economy 2020-24 (Official Journal of 24 June 2020).  
81 These are the savings and loan cooperative societies (socaps), popular financial entities (sofipos) and 
community financial companies (sofincos).  
33.3
23.1
11.5
7.3
4.4
2.7
1.6
0.8 0.51.113…29.4
26.7
10.9
7.3
3.6 2.8
1.9 1.81.11.113.5
0510152025303540
85 84 87 90 94 39 73 22 72 98Other
2016 202136.1
18.8
5.76.8
5.1 5.0
2.22.9
1.91.314.334.4
18.0
6.8 6.4 6.0
4.5
2.8 2.8 2.2
1.714.4
0510152025303540
85 84 90 39 98 87 72 73 76 74OtherHS chapters:
22. Beverages and spirits
39. Plastics
72. Iron and steel
73. Articles of iron or steel
74. Copper and articles thereof
76. Aluminium and articles thereof
84. Machinery and mechanical appliances
85. Electrical machinery and equipment
87. Motor vehicles
90. Precision, medical or surgical 
instruments
94. Furniture
98. Special proceduresImports ExportsWT/TPR/S/429 /Rev.1  • Mexico  
 
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  (CNSF), which regulates and supervises insurance institutions, bonding companies, and insurance, 
surety and reinsurance intermediaries ( Section 4.4.1.3); and (c) the National Pension Fund 
Commission (CONSAR), which regulates and  supervises pension fund managers and investment 
companies specialized in pension funds. Other bodies connected with the financial system include 
the National Commission for the Protection and Defence of Financial Services Users (CONDUSEF), 
which advises, protects and defends users of financial services and promotes financial education; 
the Institute for the Protection of Bank Savings (IPAB), which provides deposit insurance to protect 
the money that savers deposit in banks; and the Tax Administration Servi ce (SAT), which collects 
tax and customs resources as specified by law.  
4.68.  Since the previous review in 2017 the Mexican financial system has continued to perform 
dynamically. As of 30  March  2022, the system was composed of 4,973 entities, though only 2,225 
of those were fully supervised by the CNBV; the other 2,748 were supervised solely for the 
prevention of money laundering and the financing of terrorism (see Table 4.11).82 
Table 4.11 Entities supervised by the CNBV, March  2022  
Entities  Number of entities in operation  
Fully supervised entities  2,225  
Financial group holding companies  21 
Commercial ("multiple") banking institutions  50 
Development banks and development entities  16 
Multipurpose financial companies  43 
Auxiliary credit organizations and activities (OAAC)  22 
Credit unions  78 
Savings and loan cooperative societies  155 
Sociedades financieras populares  (popular financial entities)  40 
Other popular savings and loan institutions  7 
Brokerage firms  36 
Investment funds  72 
Securities rating institutions  6 
Securities issuers  583 
Stock exchanges  2 
Derivative contract exchanges  1 
Central securities counterparties  1 
Securities depository institutions  1 
Other participants in securities and derivatives markets  47 
Participants in payment networks  131 
Credit information companies  3 
Investment advisors  142 
Other supervised entities  115 
Entities supervised only in relation to money laundering 
and the financing of terrorism  2,748  
Multipurpose financial companies, non -regulated entities  1.949  
Foreign exchange centres  752 
Money transmitters  47 
Total  4,973  
Source:  CNBV.  
4.69.  At the end of December  2021, Mexican commercial ("multiple") banks, the financial 
system's leading intermediaries, held total assets amounting to MXN  11,078  billion, representing a 
real annual decrease of 7.8 %. Their current credit portfolio totalled MXN  5,435  billion (a real 
annual decrease of 2.0 % compared to the same month of 2020).83 Commercial bank assets 
represented 42.3 % of GDP, while non -bank financial intermediaries (NBFIs) accounted for 34 % of 
the assets. Banks and popular savings and loan institutions are the only financial intermediaries 
authorized to take deposits from the public (Table 4.12).  
 
82 National Banking and Securities Commission (CNBV). Viewed at : http://www.gob.mx/cnbv/acciones -
y-programas/sectores -supervisados?idiom=es . 
83 CNBV, Información del sector de Banca Múltiple al cierre de diciembre de 2021 . Viewed at: 
https://www.gob.mx/cnbv/articulos/informacion -del-sector -de-banca -multiple -al-cierre -de-diciembre -de-
2021?idiom=es . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table 4.12 Financial system indicators, 2017 -21 
 2017  2018  2019  2020  2021  
Total assets (MXN billion)  
Commercial banks  9,023  9,567  9,829  11,187  11,078  
Development banks  1,936  2,073  2,150  2,375  2,278  
NBFIs  5,923  6,201  6,434  6,252  6,770  
Insurance  .. .. .. .. .. 
Total lending (MXN billion)  
Commercial banks  4,746  5,185  5,406  5,303  5,549  
Development banks  962 1,058  1,040  1,101  1,055  
NBFIs  2,336  2,456  2,434  2,459  2,596  
Total uptake (MXN billion)  
Commercial banks  5,340  5,801  6,083  6,672  6,962  
Development banks  1,025  1,082  1,137  1,212  1,210  
Popular savings and loan institutions  108 124 136 155 173 
..  Not available . 
Note:  The asset figures for NBFIs include those of general bonded warehouses, brokerage firms, foreign 
exchange offices, savings and loan cooperative societies (socaps), popular financial entities 
(sofipos), regulated multipurpose financial companies (sofomes), credit unions, investment funds 
(net assets) and social security agencies (INFONAVIT, FOVISSSTE, INFONACOT). The lending figures 
for NBFIs include those from general bonded warehouses, savings and loan cooperative societies 
(socaps), popular financial enti ties (sofipos), regulated multipurpose financial companies (sofomes), 
credit unions and social security agencies (INFONAVIT, FOVISSSTE, INFONACOT).  
Source:  Information provided by the authorities.  
4.70.  CNBV supervision of the 2,225 fully supervised entities cov ers prudential issues related to 
risk, control systems, management quality and preventive processes, as well as adequacy of 
liquidity, solvency and stability. The CNBV supervises the other entities solely for the purposes of 
preventing money laundering and  the financing of terrorism. The Law Regulating Financial 
Technology Institutions (Fintech Law) of 2018 applies mainly to electronic payment fund 
institutions and crowdfunding institutions.  
4.71.  The CNSF supervises the regulatory compliance, solvency and financ ial stability of insurance 
and bonding institutions to safeguard the interests of the user public, promote the healthy 
development of those sectors and thus make their services as widely available as possible.  
4.72.  The Financial System Stability Council (CESF),  composed of representatives of 
the SHCP,  CNBV, CNSF, CONSAR, IPAB and Banxico, monitors the financial system for risks to 
financial stability and issues recommendations to avoid, or minimize the impact of, interruptions in 
financial system operations. Oth er inter -institutional bodies connected with the financial system 
include the National Council for Financial Inclusion (CONAIF), a consulting, advisory and 
coordinating body for the country's financial authorities with responsibility for formulating, 
imple menting and monitoring the National Financial Inclusion Policy; and the Financial Education 
Committee (CEF), which promotes financial education for the responsible use of financial services. 
The CEF is chaired by the SHCP and is made up of various authorit ies and financial institutions. 
The CESF, CONAIF and  CEF are governed operationally by the Law Regulating Financial Groups.84 
4.73.  Financial groups are an increasingly prominent feature of the Mexican financial landscape, 
having amassed some MXN  11,292  billion in assets by the end of 2021. Most of the systemically 
important banks and some of the brokerage firms and investment funds belong to financial groups. 
The Law Regulating Financial Groups (LRAF) was amended in 2018 and now requires financial 
groups to cons ist of a holding company and any of the following financial entities: general bonded 
warehouses, foreign exchange offices, bonding institutions, insurance institutions, brokerage firms, 
commercial banking institutions, investment fund management firms, inv estment fund share 
distributors, pension fund managers, multipurpose financial companies, popular financial entities, 
financial technology institutions or other financial entities entitled to form part of a financial group 
under rules issued by the SHCP. T he financial group must comprise at least 
two of the aforementioned financial entities, which may be of the same type. However, a financial 
group cannot be made up of only two multipurpose financial companies. It is also required that 
 
84 Law Regulating Financial Group s (Official Journal of 10 January 2014; last amended 
on 9 March  2018).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  more than 50 % of ever y member's share capital be held directly or indirectly by the group's 
holding company. In addition, financial institutions whose share capital is more than 50 % held by 
a group member that is a commercial banking institution, brokerage firm or insurance in stitution, 
must also be part of the group. And as for group holding companies, though allowed to invest in 
real estate and service providers, they may not directly own shares in a commercial or industrial 
entity. Nor may they acquire liabilities without au thorization from Banxico. Their only function 
must be that of shareholder.  
4.74.  The LRAF does allow Mexican subsidiaries of foreign financial institutions to be members of 
a financial group – and also to be organized and operate as holding companies – if the fo reign 
institutions concerned are incorporated in countries with which Mexico has concluded a treaty or 
agreement permitting the establishment of such subsidiaries on national territory. Such subsidiary 
holding companies are then governed by provisions appl icable to holding companies and financial 
groups as contained in the treaty or agreement concerned and in the LRAF, or provisions arising 
from the LRAF, if unopposed. They are also subject to rules for the establishment of subsidiaries 
issued by the SHCP i n consultation with Banxico, the CNSF or CONSAR as the case may be.  
4.75.  Authorization to form and operate financial groups is granted by the SHCP, or denied at its 
discretion, following consultation with Banxico. Depending on the members seeking to form the 
group, the CNBV, CNSF or CONSAR must also be consulted. Given their nature, such 
authorizations are non -transferable. A group's holding company is supervised by the commission 
responsible for the activity in which the group's preponderant financial instituti on is engaged: the 
CNBV, CNSF or  CONSAR. The supervisory commission for each financial group is determined by 
the SHCP taking into account, among other considerations, the net worth of the entities 
concerned.  
4.76.  Financial sector reform undertaken by Mexico in  2014 sought to increase the contribution of 
financial intermediation to economic growth by ensuring greater access to bank credit at lower 
cost. Among other measures, it provided for the prohibition of tied sales; the ability to transfer 
payroll and depos it accounts; stronger powers for CONDUSEF; a mandate for development banks 
to lend more in priority areas; an improved loan collateral regime; a mechanism for periodically 
evaluating the performance of commercial banks; the strengthening of Basel III prude ntial rules; 
the establishment of a judicial liquidation mechanism for insolvent commercial banks; a more 
flexible corporate regime for investment funds; the enactment of the new Law Regulating Financial 
Groups; tighter regulation of multipurpose financial  companies (sofomes); and the transformation 
of Financiera Rural  into a new development entity, the National Agricultural, Rural, Forestry and 
Fisheries Development Bank (FND).  
4.77.  Despite the reform, however, the credit penetration rate remains low: domestic financing 
for the non -financial private sector accounted for 36.6 % of GDP in the third quarter of 2021, well 
below the level in some Latin American countries (which exceeds 50 %) and the financial reform 
target (40 % of GDP).85 
4.4.1.1   Banks  
4.78.  The Mexican ban king system consists of the Bank of Mexico (Banxico), commercial banks, 
development banks, public trusts for economic development set up by the federal govern ment and 
conducting financial activities, as well as bank offices responsible for self -regulation.  Under the 
Law on Credit Institutions (LIC), public trusts for economic development are understood to conduct 
financial activities if they are mainly and usually engaged in the professional performance of 
lending transactions, including the assumption of o bligations on behalf of third parties, and such 
transactions represent 50 % or more of their total assets.86 
 
85 The financial reform was intended to boost credit penetration  by: (1) increasing competition; 
(2) increasing the credit granted by development banks; (3) encouraging the expansion of credit by 
commercial banks; (4) making the financial system sounder; and (5) making financial institutions more 
efficient. To that end, more than 30 pieces of legislation were revised and two new laws were enacted to 
regulate financial groups and insurance  and bonding institutions.  
86 Article 3 of the LIC. Viewed at: 
https://www.cnbv.gob.mx/Normatividad/Ley%20de%20Instituciones%20de%20Cr%C3%A9dito.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.79.  Commercial and development banks are governed by the LIC of 1990 as amended 
on 9 March  2018, 22  June 2018, 4  June 2019, 27  March  2020, 20  May 2021 a nd 11  March  2022. 
Secondary regulations known as the General Provisions Applicable to Credit Institutions (or the 
Single Circular on Banks (CUB)) were issued by the CNBV.87 While foreign investment in 
commercial banks is not restricted, there are restrictions on foreign investment in development 
banks (Article 6 of the Foreign Investment Law and Section 2.4).  
4.80.  Under the LIC, and the free trade agreements it has signed, Mexico  permits the commercial 
presence of foreign banks through the establishment of subsidiaries of foreign financial 
institutions. To obtain CNBV authorization, t he foreign banks concerned must comply with rules for 
the establishment of such subsidiaries and r eceive a favourable opinion from Banxico. Once 
established there are no restrictions on the operations of such subsidiaries, which may offer the 
same services and products as a domestic commercial bank, and are subject to the same 
regulations. Foreign bank s are also permitted to establish representative offices.  
4.81.  The organization and operation  of a commercial bank requires authorization from the CNBV 
with the prior agreement of its Governing Board and a favourable opinion from the Bank of Mexico. 
The CNBV mu st notify the bank within five working days of the authorization decision. 
Authorization to start operations is subject to additional authorization under Article 46 bis of the 
LIC.88 These authorizations, as well as modifications to them, are published in t he Official Journal 
and in two  widely circulated newspapers. A commercial bank must take the form of a limited 
company with fixed capital. The minimum capital required is 90  million investment units (UDIs).89 
For banks that specialize in a niche market, an d therefore do not engage in all the operations 
permitted by the LIC, a smaller amount, from 36  million to 54  million UDIs is required. There are 
three types of niche banks: those that specialize in savings and loan operations, those that provide 
corporate  financial services and those specialized in issuing credit cards and other means of 
payment.90 The share of niche banks is low: they account for around 1 % of total assets, loans and 
deposits.  
4.82.  As noted above, the CNBV  authorizes mergers and any other act of concentration between 
commercial banks subject to a favourable opinion from Banxico.91 The Federal Economic 
Competition Commission (COFECE) must also be consulted to authorize a merger (Article 27 of the 
LIC).92 Mergers of commercial banks belonging to financial groups are subject to the provisions of 
the Law Regulating Financial Groups.  
 
87 The CUB is reviewed periodically and can be consulted at: http://www.cnbv.gob.mx/SECTORES -
SUPERVISADOS/BANCA -MULTIPLE/Paginas/Normatividad.aspx . 
88 In accordance with Article 46 bis of the LIC, the CNBV authorizes commercial banking institutions to 
start operations or add operations not previously authorized if the y can prove the following: (a) the operations 
in question are expressly indicated in their by -laws; (b) they have the minimum capital required according to 
the operations they intend to carry out; (c) they have the appropriate governing bodies and corporat e 
structure to carry out those operations; (d) they have the necessary infrastructure and internal controls in 
place; and (e) they are up to date in the payment of fines for non -compliance with the LIC and have acted on 
the observations and taken the corre ctive measures formally indicated by the CNBV and Banxico.  
89 Investment units (UDIs) are units of value that are used to discharge mortgage credit obligations or 
any commercial act. Their value is adjusted for inflation in national currency and is publishe d daily by Banxico 
in the Official  Journal.  The value  of a UDI can be found  at: https://www.banxico.org.mx/ SieInternet/consultarD
irectorioInternetAction.do?sector=8&accion=consultarCuadro&idCuadro=CP150&locale=es . As of 
25 February  2022, the value was MXN 7.17.  
90 Articles 19 and 46 of the LIC, Article 2 of the CUB, and the National Council for Financial Inclusi on 
(2014), Reporte de Inclusión Financiera . 
91 According to Article 61 the Federal Law on Economic Competition (LFCE), concentration means "the 
merger, acquisition of control or any act between competitors, suppliers, customers or any other economic 
actors by virtue of which companies, associations, shares of stock, capital, trusts or assets are joined". On this 
point, the LFCE explicitly requires that COFECE authorize mergers of relevant economic actors and empowers it 
to issue sanctions as appropriate.  
92 In the case of mergers between financial institutions supervised by the CNBV, and commercial banks 
in particular, Article 27 of the LIC provides that "For the merger of two or more commercial banks, or between 
a commercial bank and any company or financial institution owning a commercial bank, prior authorization is 
required from the National Banking and Securities Commission, with the approval of its Governing Board, after 
consulting with the Federal Competition Commission and receiving a favourable opinion  from the Bank of 
Mexico".  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.83.  The Institute for the Protection of Bank Savings (IPAB) is the federal govern ment institution 
responsible for administering bank de posit insurance for savers.93 IPAB guarantees the bank 
deposits of mainly small and medium -sized savers and is responsible for liquidating insolvent 
banks at the lowest possible cost.94 IPAB helps to keep the banking system stable and to 
safeguard the nati onal payment system. The bank deposits of natural or legal persons are 
guaranteed up to  400,000 UDIs, automatically and at no charge to savers.95 
4.84.  Commercial banks performed well between 2017 and 2019 (Table 4.13). Assets increased 
from MXN  9.02 trillion in  2017 to MXN  9.83 trillion in 2019, a nominal increase of 8.9 %. Credit 
also grew during that period, from MXN  4.75 trillion in 2017 to MXN  5.41 trillion in 2019, a 
nominal increase of 13.9 %. In 2020, as a reflection of greater caution during the pandemic, 
deposit accounts grew and thus so did commercial bank assets. On the other hand, as economic 
activity contracted so did credit, by 2.2 %. During the first half of 2021, assets shrank by 5.8 %, as 
did lending, by 1.1 %. 
Table 4.13 Commercial banking activity indicators, 2017 -21 
(MXN  billion and  %) 
 Assets  Deposits  Loans  
Total  Annual 
variation 
(%) Total  Annual 
variation 
(%) Total  Annual 
change (%)  
2017 9,023   5,340   4,746   
2018 9,567  6.0 5,801  8.6 5,185  9.3 
2019 9,829  2.7 6,083  4.9 5,406  4.3 
2020 11,187  13.8 6,672  9.7 5,303  -1.9 
2021 (July)  11,078  -1.0 6,962  4.3 5,549  4.6 
Source:  CNBV.  
4.85.  The commercial banking sector remains highly concentrated. As of December  2021, 67 % of 
sector assets were held by the five largest banks (three of which were  foreign -owned ) and 83.4 % 
by the 10 largest.96 The top five commercial banks by asset size are: BBVA Mexico (22.15 % of 
total assets); Santander (14.81 %); Banamex (12.43 %); Banorte (11.16 %); and HSBC (6.45 %). 
4.86.  Commercial banks continued to have an adequate loan performance ratio, good levels of 
solvency and liquidity and positive rates of return during the review period (Table 4.14). Despite 
the contraction of economic activity, the delinquency rate remained low, rising slightly (to 2.56 %) 
in 2020 before falling back again to its pre -pandemic level (2.21 %) in 2021. Rates of return also 
declined during the pandemic, especi ally in 2020, but rose again in 2021. The coverage ratio 
remained high.  
 
93 IPAB online information. Viewed at: cnBV online http://www.ipab.org.mx/ipab and information. 
Viewed at: http://www.cnbv.gob. mx/SECTORES -SUPERVISADOS/BANCA -MULTIPLE/Paginas/Preguntas -
Frecuentes.aspx . 
94 Bank resolutions are regulated by the LIC, Second Section, Article 165 et seq . The CNBV is the 
institution in charge of that process, in which IPAB collaborates in determining the  resolution method to be 
followed. See http://www.ipab.org.mx/docs/documentos/metodos -de-resolucion -bancaria.pdf . 
95 Obligations under financial operation agreements to pay specified sums in national currency as agreed 
among the intermediaries concerned, for receivables (excepting checks) and more generally as agreed in 
commercial contracts or in other acts of commerce, may be denominated in UDIs. The daily value of the UDI 
in MXN is published periodically by the Bank of Mexico in the Official Journal. Source: Bank of Mexico, in 
accordance with the Decree (of the Congress of the Union) establishing the obligations that may be 
denominated in investment units ( UDIs) and amending and supplementing various provisions of the Federal 
Tax Code and the Income Tax Law. Banxico information. Viewed at: https://www.banxico.org.mx/marco -
normativo/marco -juridico/unidades -de-inversion/%7BDA0AB188 -A0E0-BA5C -BCD4 -6F3F2AB1C726%7D.pdf . 
96 CNBV, Información del sector de Banca Múltiple al cierre de diciembre de 2021 . Viewed at: 
https://www.gob.mx/cnbv/articulos/informacion -del-sector -de-banca -multiple -al-cierre -de-diciembre -de-
2021?idiom=es . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table. 4.14 Commercial banking financial indicators, 2017 -21 
(%) 
Financial indicators  Dec. 
2017  Dec. 
2018  Dec. 
2019  Dec. 
2020  Dec. 
2021  
Coverage index  154.91  152.36  146.18  160.10  160.49  
Liquidity coverage ratio (LCR)  174.88  197.82  188.90  240.88  240.06  
Capital adequacy ratio (CAR)  15.57  15.91  15.98  17.70  19.53  
Rates of return       
Return on assets (ROA)  1.59 1.68 1.67 0.91 1.64 
Return on equity (ROE)  15.23  16.01  15.47  8.96 14.60  
Delinquency rate (DR)  2.15 2.11 2.20 2.56 2.05 
Implicit lending rate  12.76  13.12  13.43  11.66  11.06  
Implicit borrowing rate  4.15 4.74 5.16 3.42 2.89 
Financial intermediation margin  8.61 8.37 8.27 8.24 8.17 
Source:  CNBV and Banxico online information.  
4.87.  Mexico has applied the Basel III rules since 2015, in particular with regard to solvency and 
liquidity. The capital adequacy ratio (CAR), which measures solvency, has remained at all times 
well above the required minimum of 10.5 %, even during the COVID -19 pandemic. In December  
2021, the CAR was 19.5 %, almost double what was required, which shows how well Mexican 
banks are capitalized. The high rate is also a reflection of the economic downtu rn during the 
pandemic, and related increases in the deposit accounts of cautious savers.  
4.88.  Use of the liquidity coverage ratio (LCR)  was introduced  in 2015  to ensure the ability of 
banks to meet their obligations for the next 30 days. The LCR must be greate r than 100 %, that is, 
the value of liquid assets held by a financial institution must be greater than or equal to potential 
cash outflows. Mexico implemented the LCR gradually, according to bank size and years in 
operation. Since 2016, all banks have been required to comply with a minimum LCR determined 
according to the size of the institution. Commercial banks must comply with additional capital 
conservation and countercyclical buffer requirements.  
4.89.  To encourage lending during the pandemic, Banxico and the CNBV temporarily relaxed 
the LCR requirement. Between 28  February  2020 and 28  February  2022, commercial banks 
classified according to different liquidity coverage scenarios, defined as II, III and IV, would not be 
found in breach of the 100 % requirement.97 The scenarios were defined as ranges in the average 
liquidity coverage shortfall for every day within each month, as follows: For the period 
between  28 February  2020 and 31  August  2021, the ranges allowed were 85 % to 100 % 
(scenario  II), 70 % to 85 % (scenario III) and 50 % to 70 % (scenario IV); between 1  September 
and 30 November  2021, they were 90 % to 100 % (scenario II), 75 % to 90 % (scenario III) and 
60% to 75 % (scenario IV); and between 1  December  2021 and 28  February  2022, the allowed 
ranges  were 95 % to 100 % (scenario II), 80 % to 95 % (scenario III) and 65 % to 80 % (scenario 
IV). Only institutions in scenario V (below the lower levels for scenarios IV) would be subject to 
measures limiting their operations between 28  February  2020 and 28  Februa ry 2022.98 Despite 
these exceptions, commercial banks maintained their median LCR well above the legal 
requirement:  231.94 % in the third quarter of 202199 and as high as 240.88 % in the fourth quarter 
of 2020.100 
 
97 This decision was ba sed on a determination by the Committee for the Regulation of Bank Liquidity, 
on 14 June 2018, that the Liquidity Provisions would permit temporary total or partial exemptions for 
commercial banking institutions during liquidity shortfalls arising on a mar ket-wide basis.  
98 For a commercial banking institution falling under scenario V, the Liquidity Provisions authorize 
the CNBV to order the partial or total restriction or suspension of operations such as: (i) investments in 
securities and debt instruments o ther than those classified in the Tier I Group, in accordance with Annex 1 of 
those provisions; (ii) loans to financial institutions other than commercial banks; or (iii) loans to commercial 
banks. Joint Regulations of the SHCP, Banxico and the CNBV, 26 Fe bruary 2020. Viewed at : 
https://www.banxico.org.mx/marco -normativo/normativa -emitida -por-el-banco -de-mexico/reglas -conjuntas -
requerimientos -de-liquidez -para-l/%7B222DE3CE -F2A1-95A7-7D51 -8CC9BC7A4249%7D.pdf . 
99 SHCP, Banxico and CNBV, Press release No. 112 of 9 November 2021. Coeficiente de Cobertura de 
Liquidez correspondiente al Tercer Trimestre de 2021 . Viewed at: https://www.cnbv.gob.mx/SECTORES -
SUPERVISADOS/BANCA -
MULTIPLE/Prensa%20%20Sector%20Bancario/Comunicado%20de%20Prensa%20112%20CCL%20BM%203T
%202021.pdf . 
100 SHCP, Banxico and CNBV, Press releas e No. 037 of 21 April 2021. Coeficiente de Cobertura de 
Liquidez correspondiente al Cuarto Trimestre de 2020 . Viewed at: https://www.cnbv.gob.mx/SECTORES -WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.90.  A substantial part of loans issued by financi al institutions during the review period went to 
the business sector. In 2021, businesses accounted for 47.8 % of their total lending (loan 
portfolio), with  84.8% of those business loans going to large companies and trusts and 15.2 % to 
MSMEs. In the same year, consumer loans accounted for 18.4 % of total lending, home loans for 
19.5%, government entities for 11.1 % and other financial bodies  for 3.2 %.101 
4.91.  Development b anks and development entities are part of the Federal Public Administration, 
but under the LIC and legislation specific to each are organized as national credit institutions with 
their own legal personality and assets. The SHCP is responsible for regulatin g their operations. 
Development banks are subject to the same prudential rules as those applying to commercial 
banks. The 2014 financial reform included amendments to the LIC and the Organic Laws of 
Development Banking pertaining to: their mandate; financi al inclusion and gender perspective; 
human resources; operational flexibility to permit greater lending volume; transparency; control 
and oversight and capital adequacy.102 
4.92.  The National Survey on Financial Inclusion (ENIF) has been prepared by the CNBV, in 
collaboration with the National Institute of Statistics and Geography (INEGI), since 2012. ENIF 
monitors trends  in the financial inclusion of Mexico's population as users of different financial 
products and services, means of payment and physical and digit al access channels, and identifies 
possible barriers to full participation by all in the financial system. For people aged 18 to 70, 
ENIF findings from the 2021 survey and the previous survey in 2018 included the following: 67.8 % 
(56.7  million of the peopl e in that age group) had acquired at least one formal financial product 
(savings account, loan, insurance or pension) in 2021, similar to the level in 2018; 49.1 % 
(41.1  million people) had at least one formal savings account in 2021, compared to 47.1 % in 
2018; and 32.7 % (27.4  million) had obtained at least one formal loan in 2021, up from 31.1 % in 
2018.103 
4.93.  The Mexican development banking system now consists of six institutions attending to a 
broad spectrum of sectors and activity: SMEs, public works, support  for foreign trade, housing and 
savings promotion, and credit for the military sector. Those institutions are Nacional Financiera, 
S.N.C.  (NAFIN); Banco Nacional de Obra y Servicios Públicos, S.N.C . (BANOBRAS); Banco Nacional 
de Comercio Exterior, S.N.C.  (BANCOMEXT); Sociedad Hipotecaria Federal, S.N.C.  (SHF); Banco 
del Bienestar  (BABIEN); and Banco Nacional del Ejército, Fuerza Aérea y Armada, S.N.C.  
(BANJERCITO). As of December  2021, their combined assets amounted to MXN  2,278  billion. The 
two largest dev elopment banks are BANOBRAS and NAFIN, which accounted for 63.6 % of those 
assets in  2021.104 Total lending by development banks amounted to MXN  1,055  billion in 2021.  
4.94.  In response to the difficult global economic and financial situation resulting from the 
COVID -19 pandemic, Mexico introduced a series of measures mainly aimed at stabilizing financial 
markets and facilitating the flow of credit to households and businesses. Some of the measures 
were coordinated among several financial authorities. In early 20 20, Banxico approved the 
provision of  MXN 800,000  million (equivalent to 3.3 % of 2019 GDP) for measures to strengthen 
the financial system and support liquidity in national currency. The measures included: (a) a 
reduction of  MXN 50,000  million, as of 1  April 2020, in the monetary regulation deposits (DRM) 
commercial and development banks are required to maintain in Banxico, freeing up additional 
resources for lending and maintaining or expanding credit lines; (b) the establishment of special 
accounting crit eria for the following institutions: (i) for financial institutions (as from 
27 March  2020), partial or total deferral of loan service payments (principal and interest) for up to 
four months, with possible extension for two additional months, on the entire  loan balance of 
 
SUPERVISADOS/BANCA -
MULTIPLE/Prensa%20%20Sector%20Bancario/Comunicado%20de%20Prensa%2037%20CCL%20BM%204t%2
02020.pdf . 
101 CNBV, Información del sector de Banca Múltiple al cierre de diciembre de 202 1. Viewed at: 
https://www.gob.mx/cnbv/articulos/informacion -del-sector -de-banca -multiple -al-cierre -de-diciembre -de-
2021?idiom =es. 
102 Article 30 of the LIC and online information from the CNBV. Viewed at: 
http://www.cnbv.gob.mx/SECTORES -SUPERVISADOS/BANCA -DE-DESARROLLO/Descripcion -del-
Sector/Paginas/default.aspx . 
103 Information provided by the authorities based on ENIF 2021. Viewed at: 
https://www.gob.mx/cnbv/prensa/comunicado -no-34-encuesta -nacional -de-inclusion -financiera -enif-2021. 
104 CNBV, Boletín Estadístico Banca de Desarrollo , September 2021. Viewed at: 
http://portafoliodeinformacion.cnbv.gob.mx/bd1/Paginas/infosituacion.aspx . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  customers whose ability to pay had been affected by the pandemic; (ii) for popular financial 
entities and savings and loan cooperative societies (as from 1  April 2020), the total or partial 
deferral of principal and interest payments for u p to six months on consumer, housing and 
commercial loan balances (applicable in the case of commercial loans to credit unions also), and 
up to 18 months for loans to the rural sector105; (c) the voluntary suspension of dividend 
payments; and (d) the provis ion of resources enabling banks to channel credit to MSMEs and 
individuals affected by the pandemic.106 
4.95.  In March  2020, the Foreign Exchange Commission (composed of officials from the SHCP and 
Banxico) decided to expand the exchange coverage programme from U SD 20,000  million 
to USD 30,000  million. That programme consists of non -deliverable forward (NDF) transactions in 
the foreign exchange market settled in Mexican pesos. That same month Banxico also announced 
the establishment of temporary reciprocal  currenc y arrangements (swap lines) with the Federal 
Reserve of the United States for up to USD  60,000  million. In addition, amendments were made to 
the Market Makers Programme to increase the participation of market maker institutions in the 
debt market.  
4.96.  In April  2020, Banxico announced additional measures to promote the orderly functioning of 
financial markets, strengthen credit channels and provide liquidity for healthy development of the 
financial system.107 In an initial phase, until September  2020, MXN  250,000  million would be 
provided to commercial banks and development institutions financing MSMEs and individuals 
affected by the pandemic. The resources would come from the DRM reduction and if necessary 
additional financing provided by Banxico at terms of 18 -24 months at a cost equal to the overnight 
interbank interest target rate. Banxico then decided to open an additional financing facility of up 
to MXN 100,000  million, based on collateralized corporate debt, for commercial bank financing 
of MSMEs, also for 1 8 to 24 months at the overnight interbank interest target rate. Additional 
measures included the following: a reduction in the interest rate of the Ordinary Additional 
Liquidity Facility (FLAO); an expansion of the securities eligible for FLAO, to facilita te more liquidity 
for development banks through collateralized debt or repurchases at the same cost as for 
commercial banks108; an MXN  100,000  million window to repurchase government securities at 
longer terms than in regular open market operations and at a cost equivalent to 1.02 times 
Banxico's average overnight interbank interest rate; and a Corporate Securities Repurchase 
Facility (FRTC) to p rovide liquidity to credit institutions by purchasing their short -term corporate 
securities and long -term corporate debt instruments, which owing to the current uncertainties 
could not be liquidated in the secondary market.  
4.97.  Most of the liquidity infusion m easures to overcome the adverse effect of the COVID -19 
pandemic on domestic financial markets, including the repurchase facilities  for government 
securities109 and corporate securities110, were extended until 30  September  2021. The widened 
eligibility of deb t securities in FLAO and of collateral for foreign exchange hedges settled in 
 
105 In addition, the CNBV issued special accounting criteria for the commercial credits of development 
entities (FOVI, FIFOMI, FIRA), general bonded warehouses and Financiera Nacional de Desarrollo . 
106 Banxico, Reporte de Estabilidad Financiera -Primer Semestre de  2020. Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/reportes -sobre -el-sistema -financiero/% 7BA66FA96C -
EC89-D558 -3342-F303E53042D5%7D.pdf . 
107 Banxico, Press release, 21 April 2020, Medidas adicionales para promover un comportamiento 
ordenado de los mercados financieros, fortalecer los canales de otorgamiento de crédito y proveer liquidez para 
el sano desarrollo del sistema financiero.  
108 The FLAO, available since 2008, offers liquidity to commercial banks through collateralized credits or 
repos  at a cost between 2 and 2.2 times Banxico's target overnight interbank interest rate. To increase the 
liquidity of commercial banks, Banxico decided to reduce the cost of collateralized credits or repos to 1.1 times 
its target overnight interbank interest rate.  
109 The amount available for this facility remained at MXN 100,000 million during March and April 
of 2021, decreased to MXN 65,000 million from May to July 2021, and to MXN 35,000 million in August and 
September. The last operations were carried out on 30 September 2021.  
110 The amount available for this facility remained at MXN 100,000 million during March and April 
of 2021, decreased to MXN 65,000 million from May to July, and to MXN 35,000 million in August and 
September. The last operations were carried out on 30 September 2021. Additionally, with the aim of 
continuing to encourage the placement of corpor ate debt in the primary market, such placements 
between  15 July 2020 and 30 September 2021 remained eligible and reportable to Banxico until 
31 December2021  or 30 June 2023, depending on the results of placements and allocations in the primary 
market.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  US dollars were extended until 31  August  2021.111 For the financing of MSMEs and individuals 
affected by the  COVID -19 pandemic, the special liquidity measures and the facility for  financing 
based on collateralized corporate credits were extended to 30  September  2021, with the aggregate 
amount of those programmes kept at MXN  350,000  million.112 
4.98.  Circular 13/2020, published in the Official Journal of 17  April 2020, established an excep tion 
to the provisions regulating credit cards, temporarily allowing banks not to charge the legal 
minimum amount for credit card debt until 30  September  2020.113 Circular 41/2020, published in 
the Official Journal of 28  October  2020, extended this derogation for the period from October  2020 
to January  2021.114 
4.99.  Table 4.15 shows how all of these temporary facilities were used. As of 30  September  2021, 
the total cost of the measures as incurred in national currency amounted to MXN  683,360  million 
(USD  32,950  million), and as incurred in foreign currency, to USD  22,690  million.115 
Table 4.15 Credit facilities established in response to the COVID -19 pandemic, 
30 September  2021  
 Date of 
circular  Number of 
contracts 
signed with 
banks  Programme 
amount 
MXN/USD  Current 
commitment  Amount 
allocateda 
I. Liquidity measures  
Monetary regulation depositb 04/11/2020  n.a. 50 50 50 
Ordinary additional liquidity facilityb,c 26/02/2021  30 n.a. 0 0 
Preservation of excess liquidity during 
trading hoursb      
Government securities repurchase 
windowd,e 26/02/2021  39 35 34.45  465.0  
Temporary collateralized financing facility  26/02/2021  5 15 11.56  63.19  
Corporate securities repurchase facilityd,f 26/02/2021  30 35 7.03 44.83  
II. Measures to foster the orderly functioning of financial markets  
Repurchase of government securitiesd 03/11/2015  n.a. 100 14.98  14.98  
Currency exchange coverage programme 
(USD billion)d,g 30/03/2017  25 30 7.49 7.49 
USD financing through the Federal 
Reserve swap line (USD billion)c,d 19/06/2020  21 60 0.10 15.20  
III. Measures to strengthen credit channels  
Financing from the DRM or repurchase 
measures for MSMEs and individualsb,c 26/02/2021  4 250 8.72 13.96  
MSME financing with collateralized 
corporate debtb 26/02/2021  6 100 30.75  40.22  
Total measures in MXN (billion)h   585 158.20  692.20  
Total measures in USD (billion)    90 7.59 22.70  
n.a. Not applicable.  
a Amount allocated is the total for all calls.  
b Facility for commercial and development banks.  
c Accepted collateral includes amounts deposited in the Bank of Mexico (DRM, deposits in USD, OMO 
deposits or TIIE (Interbank Equilibrium Interest Rate) deposits).  
 
111 Banxico also carried out a process of gradual reduction for this facility: the available amount 
remained at MXN 50,000 million during March and April 2021, decreased to MXN 30,000 million from May 
to July, and to MXN 15,000 million in August and September. T he last operations were carried out 
on 30 September 2021.  
112 Banxico Information. Viewed at: https://www.banxico.org.mx/publicaciones -y-
prensa/miscelaneos/%7B606E5612 -53D1 -90D0 -7993-B1A76BF714D2%7D.pdf . 
113 Banxico, Circular 22/ 2020. Medidas Provisionales en Materia de Montos de Pago Mínimo Aplicables a 
Créditos, Préstamos o Financiamientos Revolventes Asociados a Tarjetas De Crédito, en Relación con la 
Pandemia de Covid -19. Viewed at: https://www.banxico.org.mx/marco -normativo/normativa -emitida -por-el-
banco -de-mexico/circular -22-2020/%7BF24EFF46 -361D -B40C -2A6A -B9E114B6 0B5F%7D.pdf . 
114 Banxico, Circular 41/2020. Asunto: Modificaciones a las Medidas Provisionales en Materia de Montos 
de Pago Mínimo Aplicables a Créditos, Préstamos o Financiamientos Revolventes Asociados a Tarjetas de 
Crédito, en Relación con la Pandemia de Covid -19. Viewed at: https://www.banxico.org.mx/marco -
normativo/normativa -emitida -por-el-banco-de-mexico/circular -22-2020/%7B29880DF3 -C29B -52F8-1DB5 -
2170C829A75F%7D.pdf . 
115 Banxico, Uso de las medidas para promover un comportamiento ordenado de los mercados 
financieros, fortalecer los canales de otorgamiento de crédito y proveer liquidez para el s ano desarrollo del 
sistema financiero.  Informe al 30 de septiembre de 2021. Viewed at: https://www.banxico.org.mx/portales -de-
usuarios/d/%7BB6D 5C0CC -F39B-F61A-F36A-37A292BEB0EE%7D.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  d Facility aimed at credit institutions acting on their own account, and at brokerage firms, i nvestment 
funds, as well as other institutions in the financial sector through the intermediary of a bank.  
e Accepted collateral included government, IPAB and Banxico securities in national currency, UDIs or 
eligible currencies.  
f Accepted collateral, subj ect to applicable credit quality criteria, included corporate securities issued 
in national currency, UDIs or eligible currencies by legal entities resident in Mexico and by 
commercial banks under certain conditions.  
g The Foreign Exchange Commission decid ed to increase the size of this programme from  
USD 20 billion to USD  30 billion. As of 30  September  2021, USD  7.5 billion had been allocated.  
h The total amount does not include an additional measure concerning trading hours for the 
generation of liquidity through open market operations.  
Source:  Banxico, Uso de las medidas para promover un comportamiento ordenado de los mercados 
financieros, fortalecer los canales de otorgamiento de crédito y proveer liquidez para el sano 
desarrollo del sistema fi nanciero. Informe al 30 de septiembre de 2021 . Viewed at: 
https://www.banxico.org.mx/portales -de-usuarios/d/%7BB6D5C0CC -F39B-F61A-F36A-37A292BE B0
EE%7D.pdf ; and Banxico, Reporte de Estabilidad Financiera, Diciembre 2021 . Viewed at: 
https://www.banxic o.org.mx/publicaciones -y-prensa/reportes -sobre -el-sistema -financiero/%7B1826
5301-01FF-CE2A -F381-19BB9DCB1E4B%7D.pdf . 
4.4.1.2   Insurance  
4.100.   Insurance activity in Mexico is regulated by the Law on Insurance and Bonding Institutions  
(LISF).116 The Single Circular on Insur ance and Bonding, which constitutes the secondary 
regulation, was enacted in 2014.117 During the period under review, various amending agreements 
and circulars were issued, in particular to address the COVID -19 health emergency, suspend the 
elapsing of proc edural deadlines and introduce temporary regulatory measures.118 
4.101.   The LISF strengthened the legal framework for insurance and bonding to align with 
international standards and best practices, particularly with regard to solvency, stability and 
security. In r egulating competition within the sector, the LISF introduced reforms to promote more 
rigorous practices. It covers supervision in three main areas: (a) financial solvency; (b) operations 
and corporate governance and (c) transparency.  
4.102.   Under the LISF, compan ies are authorized to organize and operate as insurance 
institutions or mutual societies in one or more of the following lines of business: (a) life; 
(b) accident and illness (in one or more of the following categories: personal accidents, medical 
expenses  and health); and (c) casualty. Insurance institutions can provide reinsurance in the 
business lines and categories covered by their authorization or can be authorized to operate as 
reinsurers exclusively. While they can operate in more than one line of bu siness, a single company 
cannot conduct both life and casualty insurance operations. Companies operating in both lines 
when the LISF was enacted, however, retain the right to continue doing so. The LISF stipulates 
that pension insurance derived from the so cial security laws forms part of life insurance 
operations.  
4.103.   The National Insurance and Sureties Commission (CNSF), a decentralized body of the 
Ministry of Finance and Public Credit, is responsible for supervising insurance and bonding 
institutions to enfor ce regulatory compliance. It is also responsible for safeguarding the financial 
solvency and stability of such institutions and ensuring that the services provided by the sector 
reach the majority of the population. This supervisory function is carried out  in accordance with 
the relevant international standards.119 
 
116 Law on Insurance and Bonding Institutions (Official Journal of 4 April 2013; last amended 
on 22 June 2018). This Law entered into force on 4 April 2015.  
117 The Circular is periodically reviewed and published onlin e at: https://lisfcusf.cnsf.gob.mx/CUSF . 
118 For example, Circular 5/21 amending the Single Circular on Insurance and Bonding, published in the 
Official Journal on 30 March 2021, extended the deadlines from 1 20 to 180 calendar days from the start of 
validity for debtors to record estimates for questionable surety insurance charges as well as questionable 
premiums charged for administrative bonds; and from 90 to 150 calendar days to record such estimates in the  
case of liability insurance and premiums charged for bonds other than administrative bonds, such extension to 
be effective for the period between 1 April 2020 and 30 June 2021. That period was extended 
to 31 December  2021 by Amending Circular 22/21 of 4 o f January 2022.  
119 Information from the CNSF. Viewed at: https://www.gob.mx/cnsf/que -hacemos . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.104.   As in the commercial banking sector, Mexico authorizes the commercial presence of foreign 
insurance companies through subsidiaries and representative offices. CNSF authorization is 
required for th e establishment of subsidiaries as well as mergers between insurance companies, 
subject to the opinion of COFECE (Articles 271 -272 of the LISF).  
4.105.   The requirements for establishment and operation in the Mexican insurance market have 
not changed since 2014,  when the doors were opened for 100 % foreign direct investment (FDI) in 
insurance activity.120 All insurance companies need to be authorized by the CNSF and must be 
established as limited companies with fixed or variable capital. The minimum paid -in capital 
requirement depends on the line of business: 6,816,974 UDIs for life121, 1,704,243 UDIs for 
personal accident, medical expenses  and health, and between 5,112,730 UDIs and 8,521,217 UDIs 
for casualty insurance.122 For institutions authorized to operate exclusively as reinsurers, the 
minimum paid -in capital requirements for each transaction or line of business their authorization 
covers are  50% of the corresponding figures above (the requirements are different for 
rebonding).123 
4.106.   Insurance services covering risks to be incurred in Mexico must be underwritten by 
companies established in the country. The CNSF authorizes insurance policies to be underwritten 
by companies abroad only if the risk cannot be covered in Mexico.  In order for insurers and 
mutuals to obtain reinsurance abroad, the reinsurance entity must be registered in the General 
Registry of Foreign Reinsurers maintained by the CNSF. Entities considered by the CNSF to meet 
solvency and stability requirements are  eligible to register.  
4.107.   The CNSF  also regulates and supervises insurance brokers and authorizes them to operate 
subject to successful completion of an examination; authorizations cannot be transferred. Foreign 
nationals can operate as insurance agents in Mexico if able to prove equivalen t studies abroad.124 
4.108.   As of 31  December  2021, there were 113 insurance and bonding companies operating in 
Mexico: 103 in insurance and 10 in bonding. Fifty -six of those companies were subsidiaries of 
foreign companies and 56 were domestically -owned. Only 17 belonged to a financial group 
(10 with domestic capital and 7 with foreign capital). Thirty -six provided life and non -life 
insurance, 13 were authorized to provide life insurance only and 64 to provide non -life only.125 
Thirty -eight of the 113 companies wer e specialized companies.  
4.109.   In 2021, direct insurance premiums stood at approximately MXN  654,800  million 
(about  USD 31,992  million). MXN  643,000  million of that amount were for insurance 
and MXN 11,500  million were for bonds. By line of business, 38.6 % of total premiums were for life 
insurance, 16.5 % for automobile insurance and 34.8 % for casualty insurance.126 The sector has 
been growing but the insurance penetration rate remains low.127 Insurance premiums accounted 
for 2.57% of GDP in 2021, excluding social s ecurity. Per capita spending on insurance came to 
about  USD 248 in 2021. The pandemic appears to have affected the breakdown by business line 
 
120 Article 7 of the Foreign Investment Law (last amended on 10 January 2014).  
121 Within this business line, the minimum paid -in capital requirement for pension insurance 
is 28 million  UDIs.  
122 Circular 6/20 amending the Single Circular on Insurance and Bonding (Annex 6.1.2.) (Official Journal 
of 29 June 2020). Viewed at: http://dof.gob.mx/nota_detalle.php?codigo=5595745&fecha=29/06/2020 . 
123 The minimum paid -in capital required of bonding institutions, for each line of business their 
authorization covers, including subrogation and sub -lines within each line, is fixed as follows: 
(a) one line: 7,310 .308 UDIs; (b) two lines: 9,747 .077 UDIs; and (c) three or more lines: 12,183 .846 UDIs. 
The minimum requirements for insurers that refinance bonds but are not authorized as bonding institutio ns are 
fixed for each line as follows: (a) one line: 3,655 .154 UDIs; (b) two lines: 4,873 .538 UDIs; and (c) three or 
more lines: 6,091 .923 UDIs.  
124 Article 10 of the Regulations on Insurance and Bonding Agents of 2001.  
125 CNSF (2020), Panorama Analítico del Sector , December 2021. Viewed at:  
https://www.cnsf.gob.mx/cnsf/revista/SitePages/Panorama -anal%C3  per centADtico -del-Sector-(Antes -
BAS).aspx?web=1 . 
126 CSNF, Desempeño Oportuno del Sector de Seguros y Fianzas Cifras al 4o Trimestre del 2021 . Viewed 
at: https://www.gob.mx/cms/uploads/attachment/file/702570/Desempe_o_Oportuno_del_Sector_de_Seguros
_y_Fianzas_4T_2021_VF.pdf . 
127 The insurance penetration rate is the ratio of insurance premiums to GDP.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  in 2021, with a larger share for pensions and a smaller one for auto and life insurance than in 
2020 (when auto and life accounted for 43 % of the total).128 
4.110.   Another effect of the pandemic was a reduction in concentration rates. In December  2021, 
the top five insurers took in 41 % of total premiums compared to 44 % in September  2015. The top 
five as of September  2021 were Grupo Nacional Provincial  (12.0 %), MetLife Mexico  (9.5%), 
Seguros  BBVA Bancomer  (7.1%), AXA Seguros  (6.8%) and Quálitas  (5.3%).129 
4.4.1.3   Securities market  
4.111.   The securities market in Mexico is regulated by the CNBV. The principal law is the 
Stock  Market Law of 2005, as amended in 2019.  
4.112.   That law provides that securities must be registered on the National Securities Register  in 
order to be the subject of a public offering in Mexico. Any legal persons seeking to register their 
securities in the Register must pre sent an application supported by their articles of association and 
annual financial statements, and a placement prospectus for the securities. For debt securities and 
residual fiduciary instruments (those that only provide entitlement to payment of the pri ncipal and 
interest from the underlying assets of the trust) the credit risk rating at issuance, made by a 
securities rating institution, must also be presented. For endorsed or secured instruments, 
information must be provided on the guarantor as well as on the guarantees provided, their 
posting and means of execution.  
4.113.   Public offerings of securities require prior authorization from the CNBV. Although n o such 
authorization is required for the promotion, marketing or advertisement of the services or trades 
conducted by securities market intermediaries, stock markets, securities depositories, central 
counterparties for securities, price vendors, security ratings institutions and companies that 
manage systems for facilitating trading in securities, the guidelin es and criteria laid down by the 
CNBV must be complied with. Any deals involving a public offering of securities listed on an 
exchange must be done on that exchange. The public offering abroad of securities issued in Mexico 
or by Mexican legal persons, whe ther directly or through trusts or similar or equivalent structures, 
must be notified to the CNBV. Securities may be offered publicly through subscription, disposal or 
acquisition.  
4.114.   All government enterprises in Mexico trade on the two existing stock exchan ges, 
regardless of where they are listed. The rules laid down by the CNBV provide that deals must be 
conducted so as to ensure "best execution" for investors, meaning that a securities firm will send 
purchase or sales orders to the exchange where the marke t conditions are better. Furthermore, in 
order to encourage market development at both exchanges as well as the best possible execution 
of client orders, the 2021 reform of the general provisions applicable to securities firms amended 
the requirement to en sure best execution and incorporated rules on the transfer of liabilities.  
4.115.   Settlement is made through the Contraparte Central de Valores de México, S.A. de C.V. 
(CCV). Securities firms may direct their orders to either of the national securities exchanges.  In 
August 2017 authorization was given for a second national securities exchange in Mexico; it 
started trading in July 2018, thus Mexico now has two securities exchanges: the Mexican Stock 
Exchange (BMV) and the Institutional Stock Exchange (BIVA). Busine sses have the option of listing 
their debt or equity securities on either exchange and their securities are traded  on both. Each of 
the existing exchanges works with different financial indicators: the BMV works with the Index of 
Prices and Quotations (S&P /BMV  IPC) and BIVA with the FTSE BIVA, which includes real estate 
investment exchange -traded trusts (FIBRAS).  
4.116.   The BMV is a public company trading under concession of the Ministry of Finance and 
Public Credit (SHCP), in compliance with the rules contained i n the Stock Market Law. Shares in 
the BMV may be traded on the securities market; the initial public offering of the shares 
 
128 CSNF, Panorama Analítico del Sector de Seguros y Fianzas. Se desaceleran tanto las primas como la 
siniestralidad, 3er T 2021 . Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/682290/Panorama_Anal_tico_del_Sector_3T_2021.pdf . 
129 CSNF, Panorama Analítico del Sector de Seguros y Fianzas. Se desaceleran tanto las primas como la 
siniestralidad, 3er T 2021.  Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/682290/ Panorama_Anal_tico_del_Sector_3T_2021.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  representing its capital was made  in June 2008. The BMV Group130 has formed around the BMV, 
comprising businesses providing comprehensive services to facilitat e both trading and post -trading 
on the securities and derivatives market in Mexico. In addition to the BMV, the group runs a 
derivatives exchange, a securities a nd OTC (over -the-counter) derivatives brokerage company, the 
central securities depository in Mexico, where the custody and settlement of securities is 
performed, a securities clearing house, a clearing house for derivatives, a price appraisal company 
and risk management services. At 31  December 2021, BMV had 483131 registered  issuers, not 
counting those in its International Quotation System (SIC).  
4.117.   BIVA was awarded its operating concession by the SHCP in August 2017, and opened its 
doors on 25  July 2018, sup ported by the Nasdaq technology platform and its chief shareholder 
Central de Corretajes , which, in addition to BIVA, owns two securities and OTC derivatives 
brokerage companies and one price appraisal company. The establishment of a new securities 
exchang e has fostered greater competition between companies and has increased their 
participation in the stock market. The board of directors of BIVA is the body with responsibility for 
discharging the company's corporate purpose. Its functions include planning, organizing, 
management, evaluation, oversight and regulatory compliance, in conformity with the 
requirements of the Stock Market Law. The Board  comprises temporary, removable directors who 
may be shareholders or individuals with no connection to BIVA; at l east 25% of the directors must 
be independent members with professional experience, ability and standing. Directors must at all 
times discharge their duties without conflicts of interest and avoid any personal, financial or 
economic link to BIVA.132 At end -2021, BIVA had 66  registered issuers, not counting those listed 
on its SIC.133 
4.118.   The Securities Exchanges are the main forum for organized securities market trading in 
Mexico. Their objective is to facilitate transactions in securities,  develop the market, an d 
encourage it to expand and become more competitive. Accordingly, the Securities Exchanges 
perform the following functions: (a) establish mechanisms to facilitate operations between supply 
and demand of securities, credit instruments and other documents r egistered on the National 
Securities Register (RNV), and provide the services necessary to carry out the processes of issuing 
and placing those securities in trade; (b) maintain and publish information on the securities 
registered on those exchanges and th ose listed on the SIC at each exchange, on their issuers and 
the trading done on those exchanges; (c) establish the measures necessary to ensure that the 
operations performed by the securities firms are subject to the applicable provisions; (d) issue 
regulations laying down standards and schemes of operation and conduct  that promote fair and 
equitable practices on the securities market, oversee compliance with those regulations and 
impose disciplinary and corrective measures for failure to comply.134 
4.119.   Partici pation on the market through the public offering and placement of securities requires 
the services of a securities firm (stock market intermediary), who offers the securities on the 
primary market to investors among the wider public on the Securities Excha nges. Once the 
securities have be placed among investors on the stock market, they can be purchased and sold 
(secondary market) on the Securities Exchanges through a securities firm . Investors channel their 
orders for the purchase or sale of shares through  a promoter from a securities firm. Promoters are 
registered specialists who have received training and authorization from the CNBV. The purchase 
or sales orders are forwarded from the securities firms to the stock market through the electronic 
trading sys tems of the Securities Exchanges. Once shares or debt instrume nts135 have been 
 
130 The companies that are part of the BMV Group are: S.D. Indeval Institución para el Depósito de 
Valores, S.A. de C.V., Contraparte Central de Valores de México S.A. de C.V., MexDer, Mercado Mexicano de 
Derivados,  S.A. de C.V., and Asigna Compensación y Liquidación, Fideicomiso No. F/30,430.  
131 Information supplied by BMV includes shares, debt, exchange -traded funds (ETFs), development 
capital certificates (CKDs), certificates of stocks in investment project ETFs (C ERPIS), FIBRAS, m ortgage 
trusts, FIBRAS  E and foreign listings.  
132 Information from the BIVA. Viewed at: 
https://www.biva.mx/nosotros/acerca_de/gobierno_corporativo . 
133 The informati on supplied by BIVA includes shares, CPOs (ordinary share certs), UVs (units of value); 
short and long -term stock exchange certificates; stock exchange certificates of federal govern ment entities; 
CKDs; FIBRAS; multilateral financial organizations; exchang e-traded funds (ETFs); and investment funds and 
foreign listings. This information include s existing programmes under which no issues have been made.  
134 Information from the BMV. Viewed at: https://www.bmv.com.mx/es/grupo -bmv/acerca -de, and 
https://www.biva.mx/nosotros/acerca_de . 
135 Debt instruments are traded through "brokers".  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  acquired, their performance can be monitored in specialist newspapers or through printed and 
electronic market systems provided by the Securities Exchanges themselves (market dat a), 
allowing real -time monitoring of prices on the capital market.136 
4.120.   The following types of securities are traded on the Securities Exchanges: (a) common 
stocks, limited -voting stocks, preferred shares, ordinary certificates of participation representing 
shares, convertible liabilities and local warrants; (b) long - and short -term national debt 
instruments issued by certain Mexican governmental entities and by private companies and trust 
funds incorporated in Mexico; secondary trading occurs on OTC platforms ; (c) exchange -traded 
funds (ETFs)137, issued by private trust funds incorporated in Mexico, several of which are indexed 
to Mexican  equity indices ; (d) development capital certificates (CKDs)138; (e) certificates of stocks 
in real estate ETFs (FIBRAS)139; (f) FIBRAS  E140; (g) certificates of stocks in investment project 
ETFs (CERPIS)141; (h) warrants142; or (i) units or shares in a special purpose acquisition company 
(SPAC).143 
4.121.   Some securities, such as CERPIS , can be issued only through a restricted public off ering 
addressed exclusively to qualified institutional investors.144 CERPIS promote the financing of 
projects at the development stage under a flexible regulatory framework that improves how they 
are administered.  
4.122.   The Mexican stock market continues to be mo derate for the size of the country's economy, 
especially with regard to the number of Mexican issuers. At end -December 2021, the BMV had 
137 listed Mexican issuers of shares and 6  from other countries (excluding the securities listed on 
the SIC).145 Additio nally, there were 438 listed investment funds and 117  SIEFOREs.146 Moreover 
2,657  foreign instruments were listed on the BMV SIC.147 
4.123.   At end -December 2021, the BMV capitalization value of the 171  national share issues 
stood at MXN  9.407 billion (USD  459,635 m illion), equivalent to 36% of GDP (annual average, 
 
136 BMV. Information viewed at: https://www.bmv.com.mx/es/productos -de-informacion/sibolsa  and 
BIVA. Information viewed at: https://www.biva.mx/informacion_de_mercado/market_data/productos_biva . 
137 ETFs are certificates of participation representing equity in investment trusts placed on the BMV and 
allow the investor to purchase or sell an index or portfolio of shares as a single sha re. 
138 CKDs are fiduciary instruments launched by the BMV in 2009 for investment in the shares, stocks or 
finance of Mexican companies, whether directly or indirectly, through investment vehicles. They are intended 
to help channel investment resources into projects in the areas of infrastructure, real estate, mining, 
businesses generally and projects to develop technology. Returns are variable and are dependent on the 
outcomes of the individual projects.  
139 FIBRAS are real estate investment vehicles; their pu rpose is to lease or to acquire the right to 
receive the income from the lease of real estate. They were launched in 2010 and are issued by trusts whose 
object is to acquire or develop real estate intended for rental or to acquire the right to earn income from the 
rental of that real estate, as well as to provide finance to that end.  
140 Stock exchange certificates for investment in companies, projects or mature assets related to energy 
or infrastructure with established flows. May be acquired by investors am ong the wider public.  
141 Certificates of stocks in investment project ETFs (CERPIS) first appeared in December 2015. The 
resources raised from their issuance are used to finance projects, invest in shares, stocks or the finance of 
companies, whether directl y or indirectly, through one or more investment vehicles. Specialized pension fund 
investment companies (SIEFOREs) may invest in them. Decisions relating to CERPIS may be taken by the 
administrator, unlike in CKDs, where decisions are made by the Technical  Committee. CERPIS may make up to 
90% of their investments abroad and must make at least 10% of the investments in Mexico. They must be 
issued through a restricted public offering so there is no requirement to disclose to the public any information 
about t hese businesses or projects being promoted that represent 10% or more of the trust's assets. 
SIEFORES may invest up to 20% of their total assets in foreign securities and CERPIS to invest in or finance 
activities or projects outside Mexican territory.  
142 Documents that grant their holders, in exchange for payment of a share premium, the right to 
purchase from or sell to the issuer a given number of shares, or a block or basket of shares, or to receive from 
the issuer a given sum of money resulting from the c hange in a price index related to an exercise price for a 
given period.  
143 SPACs were launched in 2017 and comprised an initial public offering of shares the proceeds of which 
would be used to purchase one or more companies. The money raised from the market  is placed in a custody 
account abroad; until used for its intended purpose it is invested in United States government securities.  
144 A restricted public offering is one in which only institutional investors who are qualified to do so may 
participate (inves tors who have a minimum amount equivalent to UDIS  20 million invested in securities).  
145 Information provided by BMV.  
146 Information provided by BMV.  
147 Information provided by BMV.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  current prices). Approximately 12.87% of listed share issues had a capitalization value higher than 
MXN 99,000  million (USD  4,900  million); 26.90% had a market capitalization value lower than 
MXN 99,000  million and higher than MXN  20,000  million (USD  990 million), while 60.23% had a 
capitalization value lower than MXN  20,000  million. Moreover, there are 5  infrastructure and 
16 real estate FIBRAS with a capitalization value of MXN  100,479  million and MXN  417,865 million 
(USD  4,909  million and USD  20,416  million) respectively, and 2 FIBRAS  E with a capitalization 
value of MXN  29,554  million (USD  1,444  million).148 Similarly, the capitalization value of the 
shares that are part of the Index of Prices and Quotati ons (S&P/BMV  IPC) represented 70.39%149 
of the total capitalization value of the share market at the BMV.  
4.124.   At end -December 2021 , BIVA had one  listed Mexican issuer of shares150, but 370  listed 
issuers on the SIC.151 Additionally, the capitalization value of na tional share issues stood at 
MXN 4,782  million (USD  233 million). It also had one listed participation certificate representing 
equity in investment ETFs with a capitalization value of MXN  2,066  million (USD  100.9  million), 
one listed infrastructure and tw o listed real estate FIBRAS with capitalization values of 
MXN 3,178  million and MXN  44,148  million (USD  155 million and USD  2,157  million) respectively.  
4.125.   According to the CNBV, at end -December 2021 the 36  securities firms had assets totalling 
MXN 861,920  million and investments in securities amounting to MXN  682,336  million. The net 
result for the sector was MXN  6,102  million, the return on assets (RoA) averaged -1.00% and the 
return on equity (RoE) 4.28%.152 
4.4.2   Telecommunications  
4.126.   Since the previous review in 20 17 there have been no substantial changes to the legal 
framework regulating the telecommunications sector. The sector is governed by several articles of 
the Mexican Constitution153 and by the Federal Telecommunications and Broadcasting Law (LFTR) 
of 2014.154 The Federal Telecommunications Institute (IFT), an autonomous constitutional body, 
continues to be the regulator for the sector ( Section  2.1). The IFT is also the authority responsible 
for enforcing the competition rules in the sector (and in broadcasting ) and for issuing "technical 
provisions" for the sector ( Section  3). 
4.127.   The aim of Mexico's telecommunications policy is to widen access and use of broadband to 
promote digital inclusion, technological development and the digital economy (Box  4.3).155 In 
2021,  Mexico issued a National Digital Strategy (EDN) 2021 -24 to quicken the pace of the digital 
transition of government services ( e-government). Telecommunications are regarded as a public 
service of general interest.156 As a result of the pandemic they were d eclared an "essential service" 
in 2020.157 
4.128.   In order to improve digital inclusion, in 2018 Mexico rolled out the Red Compartida  
["Shared Network"], a wholesale public -private network the aim of which is to increase service 
coverage in areas that are not commercially viable for operators.158 Additionally, since 2019 a new 
 
148 Mexican Stock Exchange (BMV), Informe Anual Integrado 2020 . Information vie wed at: 
https://www.bmv.com.mx/docs -pub/informeAnual/Informe%20Anual%20Integrado_2020.pdf . 
149 Information provided by BMV.  
150 Information provided by BIVA.  
151 Information provided by BIVA.  
152 Press release No.  88, Information from the securities firms sector at end -June 2021, 
of 7 September  2021.  
153 Articles  6, 7, 27, 28, 73, 78, 94 and 105 of the Mexican Constitution.  
154 Federal Telecommunications and Broadcasting Law (Official Journal  of 14 July 2014, as last amended 
on 20  May 2021).  
155 Sectoral  Programme for  Communications and Transport (2020 -24). 
156 Article  6.B.II of the Constitution and Article  2 of the LFTR.  
157 GSMA (2020), The Mobile Economy Latin America 2020 . Viewed at: 
https://www.gsma.com/mobileeconomy/wp -
content/uploads/2020/12/GSMA_MobileEconomy2020_LATAM_Eng.pdf . 
158 In 2017 the concession to construct and operate Red Compartida was awarded to the Mexican 
operator Altán Redes. The State gav e Altán Redes exclusive use of the spectrum range required to operate the 
network. Service providers take out contracts for the wholesale service with Altán Redes (Digital Regulation 
Platform ITU/The World Bank). Information viewed at: https://digitalregulation.org/red -compartida -mexico ; 
and OpenSignal (2021), Mexico: Mobile Network Experience Report 2021 . Information viewed at: 
https://www.opensignal.com/reports/2021/04/mexico/mobile -network -experience . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  operator, CFE Telecomunicaciones e Internet para Todos  (a sub sidiary of the CFE), has provided 
broadband services in rural areas on a not -for-profit basis through free -of-charge access points in 
squares, schools and other community centres. CFE Telecomunicaciones e Internet para Todos 
provides a retail service. Howe ver, despite efforts to reduce the digital gap, according to the 
National Household Survey on the Availability and Use of Information Technology (ENDUTIH) in 
2020 only 50.4% of the rural population used the internet, compared to 78.3% in urban areas.159 
Box 4.3 Electronic commerce in Mexico  
During the period 2013 -17 the share of electronic commerce (e -commerce) in Mexico's GDP rose from 3% 
to 4.6%. That rise has continued since 2017, gaining headway in 2020 as a result of the pandemic and the 
changes it provoked in business models, patterns of production and demand.  
 
 2017 2018 2019 2020a 
Share of e -commerce in GDP (%)  4.6 4.9 5.8 5.8 
Retail trade  1.1 1.4 2.2 2.4 
Wholesale trade  1.3 1.3 1.3 1.5 
Other servicesb  2.2 2.3 2.3 2.0 
a Preliminary data.  
b For example financial and insurance, education, cultural, health or tourism services.  
According to the “Review of online sales in Mexico” published in 2021 by the Mexican Association for Online 
Sales ( AMVO), the value of electronic transactions grew by 81% in 2020, generating MXN  316 billion. 
However despite the rise, that sum amounted to only 9% of the total value of retail sales.  
In 2021 the AMVO also published a “Review of online sales in SMEs” in w hich it examined how 450  SMEs do 
business and how they have incorporated e -commerce into their management and production models. It 
found that e -commerce was used by 58% of the SMEs interviewed and that it had become essential to 
increasing competitiveness , promoting digitization and growing the customer base. However, the SMEs 
noted that e -commerce still posed logistical challenges, including in relation to transport costs and delivery 
times.  
Since 1  June 2020 a number of digital services supplied by prov iders established abroad have been liable to 
VAT (16%) in Mexico. The authorities indicated that in 2021 this yielded MXN  8,838  million.  
Note:  Source for the box: SHCP Economic Gazette. Information viewed at: 
https://www.gob.mx/shcp/gacetaeconomica/articulos/en -2019-6-0-del-pib-provino -del-comercio -
electronico ; and information provided by the authorities . 
Source:  WTO Secretariat and data p rovided by the authorities.  
4.129.   In 2021 Mexico had 123.9  million mobile telephone lines; penetration has risen since 2017 
and is close to 100% (Chart  4.3). In 2020 the pandemic sparked a rise in demand for fixed 
broadband to enable people to conduct their lives remotely; penetration reached 64% in 2020 and 
continued to rise in 2021 (Chart  4.3). 
4.130.   Telecommunications services are provided subject to a sole concession for commercial use 
(30 years, renewable) awarded by the IFT; the concession allows the holder t o provide services of 
all kinds (including broadcasting). The IFT also awards authorizations (10  years, renewable) for 
mobile virtual operators (MVO) in the mobile telecommunications market. Between 2017 and 2022 
the development of the Red Compartida encou raged various MVOs to enter the market. Mexico is 
the third  largest market in the region for MVOs.160 All operators (fixed -line and mobile) offer 
portability.  
 
159 IFT press release  No. 252/21 of 22  June 2021.  
160 IFT (2020), Análisis sobre el Mercado de Operadores Móviles Virtuales (OMVs) 2020 . Information 
viewed at: http://www.ift.org.mx/sites/default/files/contenidogeneral/estadisticas/omvs2020.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
- 154 - 
 
  Chart 4.3 Telecommunications indicators, 2017 -21 
 
Source:  IFT. Information viewed at http://www.ift.org.mx/secciones/estad%C3%ADsticas  and 
http://www.ift.org.mx/sites/default/files/nota_tecnica_tercer_trimestre.pd ; and data provided by 
the authorities.  
4.131.   América Móvil continues to be the largest provider of telephony and internet services 
(Chart  4.4) and the dominant economic operat or (AEP) in the telecommunications sector. 
According to the LFTR, an AEP is an operator whose aggregate market share 
(telephony  + internet) is greater than 50%, as measured on the basis of the following criteria: 
number of users, subscriptions, traffic car ried on the network and network capacity.161 
Consequently , América Móvil's operations are still subject to asymmetric regulatory measures that 
the IFT issues in order to level the playing field for all operators.162 Every two years the IFT 
evaluates the effe ctiveness of the regulations and may amend or introduce measures, or indeed 
abolish measures , if it takes the view that barriers to competition have disappeared. The most 
recent evaluations took place in 2017 and 2020.163 Following the evaluation in 2020 it  was decided 
that the IFT would identify specific geographical areas where the wholesale service tariffs for 
indirect access to the local loop would not be regulated. As a result, in 2021 the regulations 
governing the tariffs were abolished in 52  municipal ities.164 
 
161 Articles  262, 263 and 265 of the LFTR.  
162 Asymmetric regulatory measures can take the form of tariff regulations or other requirements such 
as allowing access to essential inputs (e.g.  infrastructure) or unblocking mobile terminals procured by clients.  
163 In 2017 the IFT issued an asymmetric regulator y measure ordering the functional separation of 
Telmex and Telnor.  
164 Information provided by the authorities.  
114.3120.2122.0 122.9123.9
20.021.022.023.9 24.693 97 97 98 98 
59 61 63 68 70 
020406080100120140
020406080100120140
2017 2018 2019 2020 2021
Penetration (%)Lines (million)Telephony
Mobile telephone lines
Fixed telephone lines
Mobile telephone lines per 100 households
Fixed telephone lines per 100 households81.188.397.4101.4104.5
17.018.419.423.5 23.566.071.078.080.083.0
50.053.055.064.067.0
020406080100120140
020406080100120
2017 2018 2019 2020 2021
Penetration (%)Lines (million)Internet
Lines with access to mobile broadband
Lines with access to fixed broadband
Lines with access to mobile broadband per 100 households
Lines with access to fixed broadband per 100 householdsWT/TPR/S/429 /Rev.1  • Mexico  
 
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  Chart 4.4 Share in the telecommunications market, 2017 -21 Q3 
 
Source:  Data supplied by the IFT. Information viewed at: https://bit.ift.org.mx/BitWebApp ; and data supplied 
by the authorities.  
4.132.   Competition in fixed telephony and fixed broadband rose during the review period following 
the introduction of the asymmetric regulatory  measures, and is reflected both in the fall in 
América  Móvil's market share and in the degree of concentration as measured by the 
Herfindahl -Hirschman Index (HHI) (Charts  4.4 and 4.5). Measures to promote competition in the 
mobile market have generally be en unsuccessful. In any event, despite the increased competition, 
each segment of the market in Mexico is still highly concentrated as the HHI in all markets is over 
2,500  points (Chart  4.5). 
Chart 4.5 Degree  of concentration in the telecommunications market, 2017 -21 
 
Note:  HHI <  1,500  points: unconcentrated market; HHI 1,500 -2,500  points: moderately concentrated 
market; HHI >  2,500  points: highly concentrated market. 2017 –20: information to December. 
2021:  information to June for fixed services and to September for mobile services.  
Source:  Data supplied by the IFT. Information viewed at: https://bit.ift.org.mx/BitWebApp ; and information 
provided by the authori ties. 
4.133.   The commercial use of the frequency bands in the spectrum requires a concession for 
which the IFT invites and awards bids for a (renewable) period of 20  years. Generally speaking , 
the bands put out to tender are for the provision of a service nationw ide but in some cases a bid 
64.362.5 62.4 62.5 63.470.7 70.7 69.8 71.0 69.721.421.2 20.6 20.3 18.612.5 11.710.910.49.913.014.8 15.3 15.1 15.415.1 15.617.1 16.117.61.3 1.5 1.7 1.9 2.4 1.8 2.0 2.1 2.5 2.9
2017 2018 2019 2020 2021T3 2017 2018 2019 2020 2021T3(% of lines)Mobile telephone                          Fixed telephone 
América Móvil Telefónica AT&T MVO60.357.8
53.3
47.544.554.552.450.1
44.542.717.119.2
23.1
24.2
24.622.223.024.3
26.526.38.7 10.1 11.2
12.6
13.115.516.016.0
15.6
14.84.35.67.411.312.94.9 6.5 8.1
11.313.69.67.35.1 4.3 4.92.9 2.0 1.5 2.1 2.5
2017 2018 2019 2020 2021T3 2017 2018 2019 2020 2021T3(% of lines)Fixed telephone Fixed broadband
América Móvil Groupo Televisa MCM Totalplay Other
0 1,000 2,000 3,000 4,000 5,000 6,000Fixed telephonyFixed broadbandMobile telephonyMobile broadband
2017 2018 2019 2020 2021(Points)WT/TPR/S/429 /Rev.1  • Mexico  
 
- 156 - 
 
  may be invited for services in a particular region or area. All operators may take part in the calls 
for tender, except the AEP, wh ich requires authorization from the IFT.165 When operators are 
awarded (or renew) a concession they pay a consideration in an amount set by the IFT, having 
heard the opinion of the SCHP.166 Concession -holders also pay annual fees laid down by Congress 
in line with a proposal from the SHCP.167 According to the IFT, the cost of using the spectrum in 
Mexico is high: the annual fees account for 80% of the total cost. In 2021 Congress raised the 
annual fees for various frequency bands and introduced annual fees for bands that had previously 
been exempt. The IFT is of the view that this rise could hamper investment, disincentivize current 
operators from participating in calls for tenders and create barriers to entry for new participants, 
which could have repercussions for the tariffs charged to end users and speed up the spectrum 
relinquishment that began in 2019.168 The authorities indicate that spectrum relinquishment could 
result in an annual loss of revenue of MXN  4.5 billion. In 2021 the IFT invited tenders for 
frequency blocks but a number of them failed to attract bidders; as a result the Institute proposed 
that the amount of the annual fees should be changed.169 
4.134.   During the review period, the mai n change involving network interconnections was the 
withdrawal of the "zero fee", an asymmetric regulatory measure that the IFT had imposed on 
América Móvil, preventing the company from charging termination fees to its competitors. The 
"zero fee" was withd rawn on 1  January 2018 for mobile services and on 1  January 2019 for fixed 
services. Since then América Móvil has been allowed to charge termination fees that are regulated 
by the IFT.170 The remaining operators are free to agree the conditions for intercon necting their 
networks, including fees. In the event that no agreement can be reached, the IFT may determine 
those conditions.171 
4.135.   The IFT sets price caps only for the fixed service provided by the AEP; the AEP must adopt 
those caps.172 
4.136.   Retail tariffs are lia ble to VAT (16%) and IEPS (3%); services providing internet access via 
the fixed or mobile networks are exempt from IEPS, as they were in 2017.173 In 2020, in response 
to customer needs during the pandemic, some operators introduced plans with preferential 
rates.174 All operators undertook not to suspend their services for non -payment.  
4.4.3   Transport  
4.137.   Mexico is setting out to create a sustainable, competitive and multimodal transport system 
with a view to reducing costs and improving and increasing connectivity wit h production and 
consumption centres. The aim is to revive local economies and integrate economically and socially 
isolated and marginalized communities and areas.175 One of the main projects in this sector is the 
 
165 Article  277 of the LFTR; and Aetha (2018), Estudio sobre la valuación y determinación de derechos 
para bandas IMT en México , Report for the IFT,  Mexico. Viewed at: 
http://www.ift.org.mx/sites/default/files/contenidogeneral/espectro -radioelectrico/07 -informeaethaparaift -
preciosespectroimt20dic2018v21pdftestado.pdf . 
166 The amount of the consideration depends on the type of use (commercial, private, or public and 
social) made of the spectrum and is published in the Federal  Law on Duty.  
167 The amount of the annual duties is based on the megahertz (MHz) frequencies involved and on 
geographical area; it is published in the Federal  Law on Duty.  
168 The operators AT&T and Telefónica have relinquished some frequency bands. Telefónica relinquished 
all the bands it had been awarded; in order to be able to continue to provide a service it has entered into a 
leasing agreement, approved by the IFT, to use AT&T's bands (IFT press release 71/2020 of 1  October  2020. 
The press releases can be viewed at: http://www.ift.org.mx/comunicacion -y-medios/comunicados -ift). 
169 IFT press releases 07/2021 and 093/2021 of 25  January 2021 and 26  October 2021 respectively.  
170 By way of illustration, s ee the Decision in which the Plenary meeting of the IFT lays down the 
minimum technical conditions governing interconnections between concession holders operating public 
telecommunications networks and sets interconnection fees using the methodology for ca lculating the 
interconnection costs that will be in force from 1  January to 31  December 2022 (Official Journal of 
5 November  2021).  
171 Articles  126 and 131(a) of the LFTR.  
172 Information provided by the authorities.  
173 Article  2.III(c) and Article  8.IV(d) of the Law on the IEPS (Official Journal of 30  December  1980, as 
last amended on 12  November  2021).  
174 Navarro  I. (2021), Competition institutions in Mexico in relation to COVID ‐19 and the economic 
recovery , ECLAC. View ed at: https://repositorio.cepal.org/bitstream/handle/11362/46660/1/S2100017_en.pdf ; 
and IFT press release No.  037/2020 of 19  April 2020.  
175 Sectoral Programme for Communications and Transport 2020 -24. WT/TPR/S/429 /Rev.1  • Mexico  
 
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  creation of a multimodal interocean corrido r on the isthmus of Tehuantepec. This project involves 
work to restore, modernize and extend the rail and road networks, as well as the region's ports, 
including work to develop specialized terminals for containers.176 Plans are also in place to set up 
industrial parks ("development hubs"), which will offer incentives to logistics, agro -industry, 
manufacturing, energy and services investment projects, with a view to transforming the area into 
a distribution hub for the domestic market and for re -exports.177 Through this project, Mexico is 
attempting to establish itself as a new competitor in the region, by using the location of the 
isthmus to offer a new route between Asia and the east coast of the United States. According to 
the authorities, 51% of the projec t has been government -funded.  
4.138.   Road transport is the most used method for imports and exports. Before the pandemic, 
in 2019, road transport accounted for 62% of the value of freight exported by Mexico and 48% of 
the value of imports.178 However, road transport has become less competitive owing to the state of 
the road network, poor road safety, fuel prices and poor connectivity with other transport 
networks.179 Another issue is the condition of freight vehicles, which has had a knock -on effect on 
costs and travel times.180 
4.139.   Domestic land transportation services for freight, passengers and tourists are still reserved 
exclusively for Mexicans ( Section 2.4). Foreigners cannot provide these services or participate 
directly or indirectly as partn ers or shareholders in Mexican companies providing these services. 
Foreigners based in Mexico can provide courier and parcel delivery services, though this is not 
actually the case at present. In order to provide these services, both Mexican nationals and 
foreigners require a permit from the Ministry of Infrastructure, Communications and Transport 
(SICT).181 
4.140.   Companies based in Mexico, even where there is a foreign majority shareholder, may 
provide international transport services. International transport is governed by international 
agreements signed by Mexico182; Mexico has agreements containing provisions on road transport 
with Canada, the United States and Guatemala.183 Cabotage is not permitted for land transport.  
4.141.   For international goods transport, the rail  system is used for importing agricultural 
products (maize, in particular) and containerized freight, and for exporting cars and beer.184 
According to the  Sectoral  Programme for  Communications and Transport 2020 -24, Mexico wishes 
to promote the use of train s to reduce economic and environmental costs. Foreign equity in rail 
services and infrastructure (for general rail system infrastructure) is still limited to 49%, but 
foreigners may increase their equity to as much as 100% if they obtain approval from the National 
Foreign Investment Commission (CNIE) ( Section 2.4); according to the authorities, the CNIE has 
authorized FDI exceeding 49% in construction projects only. Rates for rail transport of goods are 
not regulated. However, in 2020, COFECE determined tha t there was a lack of effective 
competition in the transport of chemicals on 20 routes in the state of Veracruz. Therefore, in 2020, 
 
176 The project also includes the construction of a gas supply pipeline for the region and the 
development of fibre optic networks in order to improve digital connectivity.  
177 Chamber of Deputies. Viewed at: http://www5.diputados.gob.mx/index.php/camara/Centros -de-
Estudio/CESOP/Eventos -y-Presentaciones/XXIX -Seminario -de-Economia -Urbana -y-Regional -2019. -Estrategias -
publicas -urbano-regionales -para-Mexico -en-la-Cuarta -TransformacionS/El -Proyecto -del-Corredor -Multimodal -
Interoceanico -del-Istmo -de-Tehuantepec -aspectos -legales -e-impactos -sociales ; and PowerPoint presentation 
by the Mexican Chamber for the Construction Industry. View ed at: 
https://www.cmic.org.mx/cmic/eventos/infraestructura2030/assets/presentacion -jesus-rodriguez -socorro.pdf . 
178 SCT/Mexican Institut e for Transport (IMT) (2019 ), Planeación estratégica y logística del 
autotransporte de carga . Viewed at: https://imt.mx/archivos/Publicaciones/PublicacionTecnica/pt565.pdf . 
179 Sectoral  Programme for  Communications and Transport 2020 -24. 
180 CANACAR (2021), Boletín Económico del Auto transporte de Carga , No. 14, April. Viewed at: 
https://canacar.com.mx/servicios/estadistica/boletin -economico . 
181 Article 28 of the Law on roads, bridges and federal road transp ort (Official Journal of 22 December 
1993), as last amended on 1 December 2020.  
182 Articles 59 and 61 of the Law on roads, bridges and federal road transport.  
183 SCT. Viewed  at: https://www.sct.gob.mx/transporte -y-medicina -preventiva/autotransporte -
federal/temas -internacionales . 
184 ARTF (2020), Anuario Estadístico Fer roviario 2019 . Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/574090/Anuario_Estadi_stico_Ferroviario_2019__2_.pdf . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  the Rail Transport Regulatory Agency (ARTF) began to regulate the rates of operators providing 
the service on the named rou tes; this measure is still in force.185 
4.4.3.1   Air transport  
4.142.   Since the most recent Mexico review in 2017, the main change in the air transport sector 
has been the creation of a new aviation authority to regulate the sector. In 2019, the Federal Civil 
Aviation Agency (AFAC) was created, which replaced the Directorate -General of Civil Aviation 
(DGAC) and assumed its functions in 2021.186 AFAC is a decentralized body of the Ministry of 
Infrastructure, Communications and Transport (SICT) which has technical , operational and 
administrative autonomy; the DGAC was under the SICT and so it was not an independent 
body.187 
4.143.   The Civil Aviation Law of 1995188, the Airports Law of 1995189 and their respective 
implementing Regulations regulate air transport in Mexico, and  have not change substantially 
since 2017. International air services are regulated by air service agreements. However, if there is 
no agreement in place, the services are provided in accordance with the principle of reciprocity.190 
4.144.   Mexico has signed 55 airline service agreements. Since 2017, Mexico has signed 
agreements with Curaçao, Spain, the Philippines, Finland, Iceland, Israel and the Netherlands; and 
has revised its agreements with Germany, Canada and El Salvador (Table A4.1). By signing and 
revisi ng these agreements, Mexico is setting out to increase the openness of airline services in 
order to increase connectivity and therefore boost tourism. Mexico generally does not grant fifth 
freedom rights. However, under some of the agreements, these rights  may be granted provided 
that an airline requests them and the aviation authority for each party agrees. Cabotage is not 
permitted. However, under the Civil Aviation Law, private cabotage flights are permitted.191 
4.145.   Mexico restricts foreign equity in Mexican airlines which provide international services. 
51% of the equity must be Mexican -owned. The FDI cap for companies operating flights solely in 
Mexico was increased from 25% to 49% in 2017 ( Section 2.4). According to the authorities, this 
has had a positive effect on FDI and has contributed towards modernizing the air fleet.  
4.146.   Foreign airlines require a permit issued by AFAC to provide international services, and 
Mexican airlines require a concession (scheduled flights) or a permit (non -scheduled flights).192 
Rates for international services are registered with AFAC and, in some cases, must also be 
approved.  
4.147.   Air traffic management and air navigation assistance services are still being provided by 
the Mexican Air Space Navigation Services (SENEAM), a government ag ency. Mexico still restricts 
foreign equity participation in airports. Foreign investment generally may not exceed 49% of the 
equity of concessionaire companies. However, if they obtain approval from the CNIE, foreigners 
may exceed  this cap and invest as m uch as 100% ( Section 2.4). This situation currently does not 
apply, as the three airport groups operating in Mexico are majority Mexican -owned.  
 
185 ARTF. Viewed at: https://www.gob.mx/artf/artic ulos/resoluciones -en-materia -de-regulacion -
tarifaria?idiom=es ; COFECE. Viewed at: https://www.cofece.mx/declaratoria -de-falta-de-competencia -en-
transporte -ferroviario ; and information provided by the authorities.  
186 Decree creating the Federal Civil Aviation Agency, an autonomous administrative agency of the 
Ministry of Communications and Transport (SCT) (Official Journal  of 16 October 2019); the Civil Aviat ion Law, 
as amended through the Decree published in the Official Journal of 20 May 2021.  
187 Information provided by the authorities.  
188 Civil Aviation Law  published in the Official Journal of 12 May 1995, last amendment published in the 
Official Journal of 2 0 May 2021); Regulations implementing the Civil Aviation Law published in the Official 
Journal of 7 December 1998, last amendment published in the Official Journal of 29 June 2020.  
189 Airports Law  published in the Official Journal of 22 December 1995, last amendment published in the 
Official Journal of 20 May 2021; Regulations implementing the Airports Law published in the Official Journal of 
17 February 2000, last amendment published in the Official Journal of 21 June 2018.  
190 Article 20 of the Civil Aviatio n Law.  
191 Article 17 bis of the Civil Aviation Law added through the Decree published in the Official Journal of 
20 May 2021.  
192 Articles 9 and 11 of the Civil Aviation Law.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.148.   Mexico has 78 airports, including 65 which serve international passengers; Felipe Ángeles 
International Airport was opened in 2022. Just like in 2017, the airports are operated by three 
private airport groups (all Mexican -owned) and by public entities. These are Airports and Auxiliary 
Services (ASA), Mexico City International Airport (AICM), both semi -public, and, s ince 2020, the 
Felipe Ángeles International Airport (AIFA) group, which was formed to operate Felipe Ángeles 
International Airport .193 The AICM operates Mexico City International Airport (CDMX), the country's 
largest airport.  
4.149.   In addition to the AICM and AIF A, two other State -owned companies operate in the airport 
sector: Servicios Aeroportuarios de la Ciudad de México (SACM) and Grupo Aeroportuario de la 
Ciudad de México (GACM). The SACM provides all types of administrative services to the AICM and 
GACM. The  GACM was also responsible for building the new CDMX international airport (NAICM), a 
project started in 2014 but abandoned in 2019, when 30% of the works had been completed.194 
Instead, the Santa Lucía military base was converted into Felipe Ángeles Intern ational Airport in 
2019. As a result of the construction of the NAICM being abandoned, government expenditure in 
airport infrastructure fell from MXN 29,503 million in 2018 to MXN 2,096 million in 2019 and 
MXN 657 million in 2020.195 Mexico City Internation al Airport and Toluca International Airport, 
along with Felipe Ángeles International Airport, make up the Metropolitan Airport System (SAM).  
4.150.   Airport operators must provide airport services or, failing this, procure these services from 
third parties; should  these services be procured, the contracts must be approved by AFAC.196 The 
rates for services in airports managed by private -sector concessionaires are still regulated. For 
each service, the SICT determines a maximum rate per traffic unit (equivalent to 1 passenger or 
100 kg of freight), based on the concessionaire's investment plan; the rates may be adjusted after 
taking into account the annual efficiency targets achieved by the concessionaire and inflation. 
Airport departure tax (ADT) paid by all passenge rs is one of the regulated charges. Revenues 
generated by the ADT account for more than half of airports' total revenues, meaning that they 
are an important resource for concessionaires. ASA, the AICM and AIFA are still setting the rates 
for all the airpor ts that they operate, but these rates must be approved by the Ministry of Finance 
and Public Credit (SHCP) and registered with AFAC.197 
4.151.   Until 2018, ASA was the only provider of aviation fuel storage, distribution and supply 
services. Mexico liberalized this  market in 2018.198 However, FDI may not exceed 49% of the 
capital of companies that supply fuel ( Section 2.4). In order to help open up the market, ASA 
allowed new entrants to contract out the available capacity in their storage infrastructure during a 
transition period (from 2018 to 2019).199 A permit from the Energy Regulatory Commission (CRE) 
is required to supply aviation fuel.200 The authorities have stated that ASA is still the main supplier.  
4.152.   Airlines may provide ground handling services for themselves or procure them from 
another company, which may be another airline. A permit from AFAC is required in order to 
provide these services.  
 
193 Resolution authorizing the incorporation of Aeropuerto Internacional Felipe Ángeles , S.A. de C.V. , a 
majority State -owned company, which will be grouped in the sector coordinated by the Ministry of Defence 
(Official Journal of 14 December 2020).  
194 GACM. Viewed at: http://www.gacm.gob.mx ; the Spanish Institute for Foreign Trade (ICEX) (2020), 
Guía de Negocio: México ; and ECLAC (2019), "Airport infrastructure in Latin American and the Caribbean", 
Bulletin 370. Viewed at: https://repositorio.cepal.org/bitstream/handle/11362/44901/S1900357_en.pdf . 
195 SCT statistics. Viewed at: https://www.sct.gob.mx/planeacio n/estadistica/principales -estadisticas -
del-sector . 
196 Article 48 of the Airports Law and Article 67 of the Regulations implementing the Airports Law.  
197 Information provided by the authorities; Articles 48 and 67 -70 of the Airports Law; SCT. Viewed at: 
https://www.sct.gob.mx/file admin/DireccionesGrales/DGAC/00 -aeronautica/regulacion -economica -de-
aeropuertos -esquema -de-tarifas -maximas -competencia -e-infraestructura/01 -regulacion -economica -de-
aeropuertos -25oct10 -vf.pdf ; and COFECE. Viewed at: 
https://www.cofece.mx/cfcresoluciones/Docs/Mercados%20Regulados/V2/7/1382537.pdf . 
198 Transitional Article 9 of the Regulations  implementing the Airports Law repealed by the Decree 
published in the Offi cial Journal of 21 June 2018.  
199 CRE Resolutions RES/1704/2018 and RES/1075/2018; ASA press release No. 099/2018. Viewed at: 
https://www.gob.mx/asa/prensa/asa -garantiza -la-apertura -de-sus-instalaciones -para-el-almacenamiento -de-
combustibles -de-aviacion -170862?idiom=es . 
200 Article 76 of the Hydrocarbons Law (Official Journal of 11 August 2014), as last amended on 
20 May 2021.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.153.   In 2020 -21, in response to the pandemic, the authorities stated that airlines had the same 
business terms (volume discounts) and could extend the payment term for fuel from 30 to  
60 days.  
4.154.   Between 2017 and 2019, the number of international passengers arriving in Mexico 
increased from 44.4 million to 47.9 million; in 2020, this number fell by 58.5% owing to the 
pandemic . In 2021, air traffic began to pick up again, but was still below pre -pandemic levels 
(Table  4.16). From 2021, air traffic has also suffered as a result of the United States' decision to 
downgrade Mexico's air safety standards rating; this has restricted air traffic between Mexico and 
the United  States, which is Mexico's main market.201 
Table 4.16 International traffic indicators, 2017 -21 
 2017  2018  2019  2020  2021  
Passengers (thousands)  44,420  46,871  47,892  19,842  35,641  
Cargo (thousands of tonnes)  628 700 649 547 684 
Source:  SICT statistics. Viewed at: http://www.sct.gob.mx/planeacion/estadistica/principales -estadisticas -
del-sector ; information provided by the authorities . 
4.4.3.2   Maritime transport  
4.155.   Since the previous  Mexico review in 2017, the main changes in the maritime and port 
sector have been institutional. In 2021, the Ministry of the Navy (SEMAR) replaced the Ministry of 
Infrastructure, Communications and Transport (SICT) and assumed its role of managing and 
regulating the sector. As a result of this change, SEMAR has been the national maritime and port 
authority since 2021. The General Coordinating Office for Ports and the Merchant Marine (CGPMM), 
which was an agency of the SICT, was transferred to SEMAR. The C GPMM is made up of the 
Directorate -General of Development and Ports Administration, the Directorate -General of Ports 
(DGP) and the Directorate -General of the Merchant Marine (DGMM).202 
4.156.   Maritime transport is governed by the Shipping and Maritime Trade  Law of  2006, the Ports 
Law of 1993 and their respective implementing Regulations.203 In 2021, the new Regulations 
implementing the Ports Law were published, repealing the implementing Regulations of 1994, 
particularly in order to reflect the institutional changes that have occurred in the sector, according 
to the authorities.  
4.157.   International (high -seas) services are provided in accordance with the principle of 
reciprocity. No authorization of any kind is required. Foreign shipping companies must  be 
represented by a shipping agent (consignee agent) at each Mexican port where they operate; the 
DGMM approves and registers shipping agents.204 51% of the capital of shipping companies based 
in Mexico which provide international (high -seas) services must  be Mexican -owned. However, 
foreigners may increase their equity participation to as much as 100%, subject to prior agreement 
from the National Foreign Investment Commission (CNIE) ( Section 2.4).  
4.158.   The transport of goods and persons in waters under Mexican j urisdiction and cabotage 
services must be provided by shipping companies under Mexican control (51% of equity) and in 
Mexican vessels ( Section 2.4). For cabotage, if there are no Mexican shipping companies or 
vessels, or if these shipping companies or vess els cannot provide the service, the DGMM may 
authorize foreign shipping companies and/or vessels to do so. In such cases, the DGMM issues a 
temporary navigation  permit, which initially lasts three months, but can be renewed for up to two 
years. At the  end of the two years, the foreign vessel must be registered in Mexico in order to be 
 
201 FAA press release of 25 May 2021. Viewed at: https://www.faa.gov/newsroom/federal -aviation -
admin istration -announces -results -mexicos -safety -assessment?newsId=26142 . 
202 SEMAR press release No. 042/2021 of 7 June 2021.  
203 Shipping and Maritime Trade Law of 2006 (Official Journal of 1 June 2006), as last amended on 
7 December 2020; Regulations implementing  the Shipping and Maritime Trade Law (Official Journal of 
4 March  2015); Ports Law (Official Journal of 19 July 1993), as last amended on 7 December 2020; and 
Regulations implementing the Ports Law (Official Journal of 16 December 2021).  
204 Article 24 of th e Shipping  and Maritime Trade Law. https://www.gob.mx/semar/prensa/sct -efectua -
traspaso -de-la-coordinacion -general -de-puertos -y-marina -mercante -a-semar . WT/TPR/S/429 /Rev.1  • Mexico  
 
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  able to continue providing the cabotage service.205 "Unusually specialized" foreign vessels206 are 
exempt from this registration requirement, meaning that they can provide the c abotage service 
indefinitely and that the temporary navigation permit  can be renewed as many times as 
necessary.207 In 2022, nine  "unusually specialized" foreign vessels are providing a cabotage 
service to transport persons and equipment to P EMEX  oil rigs, for example.208 
4.159.   According to the Shipping and Maritime Trade Law (Articles 8 and 39), only if COFECE 
determines that there are no conditions for effective competition  on a relevant market may 
SEMAR: (i) establish the bases for regulating rates209; and (ii) p artially or fully book specific 
international freight transport for Mexican company owners or shipping companies with Mexican 
vessels to provide this service. This booking can only continue to be held as long as there is a lack 
of effective competition on the market in question. There were no freight transport bookings 
during the review period.  
4.160.   According to the authorities, foreign vessels operate the majority of Mexico's international 
traffic. In order to promote the development and participation of the Me xican merchant marine, 
Mexico is still providing support to the naval industry and Mexican shipping companies through the 
National Merchant Marine Development Fund (FONDEMAR).210 This support is provided in the form 
of bank guarantees covering up to 50% of the amount of credit acquired up to a maximum of 
USD 5 million; amounts above this limit may be secured if approved by the DGMM. During the 
review period, FONDEMAR resources were not used.  
4.161.   Mexico has limitations in place regarding t he nationality of staff working on board vessels 
under the Mexican flag. Therefore, the entire crew on board Mexican vessels must be Mexican 
nationals.211 
4.162.   Ports are inalienable, imprescriptible and unattachable vis-à-vis the State.212 They are 
operated by the National Port System Administrations (ASIPONA s) and the Integrated Port 
Administrations (API s). ASIPONAs and APIs may be public or private entities. Foreign equity in an 
ASIPONA/API is still limited to 49% of its capital ( Section 2.4). Private equity h as historically been 
very limited. Until 2021, the port of Acapulco was managed and operated by a private API, but, 
in 2021, the concession was not renewed and management of the port reverted to the State.213 
In 2022, all ports are operated by public ASIPON As/APIs.  
4.163.   ASIPONAs/APIs must build and maintain the basic infrastructure, build and operate the 
terminals, and provide port services.214 However, works and services may be contracted out. This 
process is subject to federal laws regulating government procurem ent. In addition, under the Ports 
 
205 Accor ding to information supplied by the authorities, 633 temporary permits were granted between 
2017 and 2021, mostly to foreign vessels operated by Mexican shipping companies. One foreign vessel was 
authorized to provide cabotage services. Two foreign vessels  were registered in Mexico.  
206 These vessels have specific technological characteristics or are used to undertake specific activities 
(Article 10 of the Shipping and Maritime Trade Law).  
207 Articles 40 -41 of the Shipping and Maritime Trade Law.  
208 CGPMM. View ed at: https://www.gob.mx/puertosymarinamercante/acciones -y-programas/estatus -
de-los-permisos -temporales -para-la-navegacion -de-cabotaje -a-embarcaciones -extranjeras . 
209 In 2021, COFECE determined that the cabotage service for passengers (ferry service) on routes in 
the state of Quintana Roo was not being provided under conditions for effec tive competition. Therefore, in 
2022, SEMAR published the "Bases for the regulation of rates for the provision of maritime transport services 
for passengers in the northern region of the state of Quintana Roo" (Official Journal of 18 March 2022).  
210 Rules o f Operation of the National Merchant Marine Development Fund (Official Journal of 
24 September 2012).  
211 Article 25 of the Shipping and Maritime Trade Law.  
212 General Law on National Assets (Official Journal of 20 May 2004), as last amended on 
14 September  2021.  
213 Declaration establishing the reversion of operations, terminals, marinas and facilities in the Port of 
Acapulco, Guerrero, to the federal govern ment (Official Journal of 7 July 2021).  
214 Article 44 of the Ports Law classifies port services  into different groups: services to vessels for inland 
navigation (pilotage, towing, mooring and lighterage); general services (for example: supply of fuel and 
drinking water, and provisioning); and handling services (for example: loading/unloading, delive ry/receipt and 
storage).  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Law, service contracts must be tendered. However, they may be awarded directly for technical, 
efficiency and security reasons.215  
4.164.   Mexico has an FDI cap (49%) in place for companies providing pilotage, towing, mooring 
or lighterage services, or which engage in supplying maritime fuel (bunker). However, if they 
obtain approval from the CNIE, foreigners may increase their equity (to as much as 100%) in 
towing, mooring or lighterage services ( Section 2.4). According to the auth orities, between 2017 
and 2022, two licences were granted. Harbour pilots must be Mexican nationals.216 Foreign -owned 
shipping companies may provide port dredging, construction and maintenance services, using 
foreign vessels, subject to reciprocity arrangem ents and prior consent from SEMAR.217 
4.165.   The DGP may establish rates for using terminals and providing port services if it 
determines that there is no effective competition in the port.218 This occurs if, for example, there is 
just one terminal, a specific carg o can only be handled at one terminal, or if there is just one 
service provider. The criteria for determining the maximum rates were not revised during the 
review period; the DGP sets these criteria taking into account the operating and capital cost, the 
actual and estimated traffic, and the rates on domestic and international markets.219 The 
maximum rates are set each year. Within the context of this review, the authorities have stated 
that 51% of the port service rates are regulated  in 2022 . During the pan demic, discounts were 
granted on rates, and payments could be deferred from 30 to 60 days.220 
4.166.   In 2021, 234.3 million tonnes of cargo were handled in Mexico's ports. This was above the 
2020 volume, but was still below pre -COVID -19 pandemic levels. Foreign tr ade freight is mainly 
made up of hydrocarbons, containerized cargos and mineral bulk (Chart 4.6). The port of 
Manzanillo is the country's main port and one of the region's main ports for container traffic. 
Mexico also has 15 port terminals, which are locat ed away from port precincts and are used for 
exporting salt, gypsum and phosphoric rock.  
Chart 4.6 Foreign trade port operations, by cargo type, 2017 -21 
 
Source:  CGPMM data. Viewed at: https://www.gob.mx/puertosymarinamercante/acciones -y-
programas/estadisticas -70565 ; e información facilitada por las autoridades . 
 
215 Articles 40, 46, 51 and 53 of the Ports Law.  
216 Article 57 of the Shipping and Maritime Trade Law.  
217 Article 40 of the Shipping and Maritime Trade Law.  
218 The DGP may seek guidance from COFECE.  
219 Rate regulation with respect to concessions for the Integrated Port Administrations (APIs) indicated 
(Official Journal of 22 December 1999).  
220 Information provided by the authorities.  
020406080100120140
020406080100120140
2017 2018 2019 2020 2021
Imports (in million tonnes)Exports (in million tonnes)Exports (left-hand scale)
Loose general cargo
Containerized general cargo
Agricultural bulk
Mineral bulk
Petroleum and derivatives
Other fluids
Imports (right-hand scale)
Loose general cargo
Containerized general cargo
Agricultural bulk
Mineral bulk
Petroleum and derivatives
Other fluidsWT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.4.4   Tourism  
4.167.   Mexico regards tourism as a strategic sector.221 According to data from the Tourism 
Satellite Account (TSA), tourism generated approximately 8.5% of GDP between 2017 and 2019. 
However, in 2020, on account of the pandemic, the sector's contribution to GDP fel l to 6.7%.222 In 
2021, the sector began to bounce back and its estimated contribution to GDP stood at 7.1%.223 
The most important tourism activities for the economy are accommodation services, transport, 
restaurant and leisure services, and handicrafts. Tourism is also a major so urce of employment; in 
2021, it accounted for 8.5% of all jobs.224 
4.168.   In 2019, Mexico welcomed 97.4 million visitors, including 45 million tourists, which was a 
record high (Table 4.17). That same year, Mexico was the world's seventh tourism destination.225 
In 2020, even though the pandemic brought down the number of international tourists, Mexico 
became the world's third tourism destination, as it adopted very few restrictions on international 
tourism.226 Tourism has traditionally been one of Mexico's main s ources of foreign exchange, after 
remittances.  
Table 4.17 International tourism indicators, 2017 -21 
 2017  2018  2019  2020  2021  
Number of visitors (millions)  99.3 96.5 97.4 51.1 55.3 
Tourists  39.3 41.3 45.0 24.3 31.9 
Short -stay visitors  60.0 55.2 52.4 26.8 23.4 
Total expenditure (in USD million)  21.3 22.5 24.6 11.0 19.8 
Tourists  19.2 20.4 22.4 9.9 18.5 
Short -stay visitors  2.1 2.1 2.2 1.1 1.3 
Source:  Information provided by the authorities.  
4.169.   The tourism sector is regulated by federal laws and laws adopted by federal agencies. The 
General Law on Tourism and its implementing Regulations provide the legal framework for the 
sector at a federal level.227 
4.170.   The Ministry of Tourism (SECTUR)  formulates  and implements sectoral policy, the aims of 
which are outlined in the Sectoral Programme for Tourism (PROSECTUR)  2020-24, based on the 
National Development Plan (PND) 2019 -24. Mexico is pursuing an inclusive and sustainable 
tourism model. One o f the objectives being  pursued in order to promote sector growth is 
diversifying tourist destinations and tourism markets. As a result, Mexico has boosted its 
international image228 and has set up digital platforms to promote the country's various 
destinati ons and tourism products; it has also rolled out projects, such as Tren Maya, to promote 
cultural and historical tourism on the Yucatan peninsula, as well as training and certification 
programmes. In addition, in order to bring about the quickest possible post-pandemic recovery, it 
has endeavoured to promote domestic tourism.  
 
221 Sectoral Programme  for Tourism  2020-24. 
222 Mexico Tourism Satellite Account  2020. Viewed at: 
https://www.datatur.sectur.gob.mx/SitePages/ProductoDestacado3.aspx . 
223 Ministry of Tourism press release No. 083/2022.  
224 Ministry of Tourism data. Viewed at: 
https://www.datatur.sectur.gob.mx/SitePages/ResultadosITET.aspx . 
225 Ministry of Tourism (2020), Segundo Informe de Labores 2019 -2020. Viewed  at: 
https://www.gob.mx/sectur/documentos/secretaria -de-turismo -segundo -informe -de-labores -2019-2020-
251051 . 
226 Ministry of Tourism press release No. 040/2022.  
227 General Law on Tourism (Official Journal of 17 June 2009), as last amended on 31 July 2019; and 
Regulations implementing the General Law on Tourism (Official Journal of 6 July 2015), as last amended on 
16 August 2015.  
228 In 2019, the  Mexican Tourism Promotion Board, a State -owned corporation responsible for promoting 
Mexico as a tourist destination, was shut down. Since 2019, the Tourism Diplomacy Council (comprising 
representatives from SECTUR, the Ministry of Foreign Affairs (SRE) a nd private enterprise) has  developed 
campaigns to promote tourism abroad; these campaigns are rolled out via SRE representative offices.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  4.171.   All tourism service suppliers must be registered with the National Tourism Regist ry (RNT), 
which is managed by SECTUR.229 Land transport services for tourists are reserved to 
Mexican  nationals and Mexican companies, and require permits which are non -transferable 
(Section  2.4). Foreigners may provide all other types of tourism services, including tourist guide 
services. In or der to provide these services, a special licence from SECTUR is required in order to 
be able to register in the RNT.230 
4.172.   The National Tourism Development Fund (FONATUR), a state entity, oversees the 
development of tourist areas and promotes investment. Throu gh FONATUR, investors can obtain 
financing with preferential conditions in order to acquire landed property; 30% of the loan amount 
is paid within a year interest -free and the rest is paid within five years  at a preferential rate.231 
Through FONATUR, eight tourist areas have been developed, especially for sun and beach 
tourism.232 
4.173.   Bancomext, the federal development bank, regards tourism as a "strategic or priority 
sector" on account of the foreign currency it generates and its contribution to the job market. The 
bank provides financing, in pesos or US dollars, of up to 50% of the project costs. The terms of the 
loan, including the interest rates, are set on a case -by-case basis. The amounts financed vary 
depending on whether the bank is a first -tier or second -tier bank.233 In 2021, the amount financed 
by Bancomext  within the tourism sector was MXN 40,831 million, which is 21.2% of the total 
amount provided to "strategic" sectors.234 
 
 
 
 
 
 
229 RNT. Viewed  at: https://www.gob.mx/tramites/ficha/inscribete -al-registro -nacional -de-
turismo/SECTUR3109 . 
230 Article 78 of the Regulations implementing the General Law on Tourism . 
231 Government of Mexico. Viewed at: https://www.gob.mx/fonatur/acciones -y-programas/preguntas -
frecuentes -fonatur -faq-s and https://www.gob.mx/fonatur/acciones -y-programas/porque -invertir -en-
fonatur?idiom=es . 
232 Government of Mexico. Viewed at: https://www.gob.mx/fonatur/ acciones -y-programas/destinos -
fonatur . 
233 Bancomext. Viewed at: https://www.bancomext.com/sector/turismo . 
234 Information provided by the authorities.  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS section and main chapter, 201 6-21 
(USD million and %)  
Descrip tion 2016  2017  2018  2019  2020  2021  
 (USD million ) 
Total exports  373,954 409,433 450,713 460,604 416,999 494,225 
 (% of exports ) 
1 - Live animals; animal products  0.9 0.9 0.9 1.0 1.1 1.1 
   02. Meat and edible meat offal 0.4 0.4 0.4 0.5 0.6 0.7 
  03. Fish and crustaceans, molluscs and other 
aquatic invertebrates  0.2 0.2 0.3 0.2 0.2 0.2 
  01. Live animals  0.2 0.2 0.2 0.2 0.2 0.1 
  04. Dairy produce; birds' eggs; natural 
honey; edible products of animal origin  0.1 0.1 0.1 0.1 0.1 0.1 
2 - Vegetable products  3.7 3.7 3.4 3.6 4.1 3.8 
  07. Edible vegetables and certain roots and 
tubers  1.8 1.6 1.6 1.6 2.0 1.7 
  08. Edible fruit and nuts; peel of citrus fruit 
or melons  1.5 1.6 1.4 1.6 1.7 1.7 
  09. Coffee, tea, maté and spices  0.1 0.1 0.1 0.1 0.1 0.1 
  10. Cereals  0.2 0.2 0.1 0.1 0.1 0.1 
3 - Animal or vegetable fats and oils  0.1 0.1 0.1 0.1 0.1 0.1 
4 - Prepared foodstuffs; beverages, spirits and 
vinegar; tobacco and manufactured tobacco 
substitutes  3.0 3.2 3.2 3.4 3.9 3.9 
  22. Beverages, spirits and vinegar  1.2 1.4 1.5 1.6 1.9 2.0 
  19. Preparations of cereals, flour, starch or 
milk 0.5 0.5 0.4 0.5 0.6 0.5 
  20. Preparations of vegetables, nuts or other 
parts of plants  0.4 0.4 0.4 0.4 0.4 0.4 
  17. Sugars and sugar confectionery  0.4 0.4 0.4 0.4 0.4 0.4 
  21. Miscellaneous edible preparations  0.2 0.2 0.2 0.2 0.3 0.3 
5 - Mineral products  6.0 6.9 8.0 6.8 5.8 7.5 
  27. Mineral fuels; bituminous substances; 
mineral waxes  4.8 5.6 6.6 5.4 4.0 5.6 
  26. Ores, slag and ash  1.0 1.2 1.2 1.2 1.6 1.8 
6 - Products of the chemical or allied industries  2.6 2.4 2.3 2.3 2.4 2.5 
  33. Essential oils; perfumery or cosmetic 
preparations  0.6 0.6 0.5 0.5 0.5 0.5 
  29. Organic chemicals  0.5 0.5 0.4 0.5 0.4 0.4 
  30. Pharmaceutical products  0.4 0.3 0.3 0.3 0.3 0.4 
  38. Miscellaneous chemical products  0.3 0.3 0.2 0.2 0.3 0.3 
  28. Inorganic chemicals  0.2 0.2 0.2 0.2 0.2 0.3 
7 - Plastics and articles thereof  2.9 2.9 2.8 2.8 2.9 3.1 
  39. Plastics and articles thereof  2.2 2.2 2.1 2.0 2.2 2.3 
  40. Rubber and articles thereof  0.7 0.7 0.7 0.7 0.7 0.8 
8 - Raw hides and skins, leather, furskins and 
articles thereof; saddlery and harness  0.2 0.2 0.2 0.1 0.1 0.1 
9 - Wood and articles of wood; wood charcoal  0.1 0.1 0.1 0.1 0.2 0.2 
10 - Pulp of wood or of other fibrous cellulosic 
material; paper and paperboard and articles 
thereof  0.5 0.5 0.5 0.4 0.5 0.5 
  48. Paper and paperboard; articles of paper 
pulp, of paper or of paperboard  0.4 0.4 0.4 0.4 0.4 0.4 
11 - Textiles and textile articles  1.7 1.6 1.5 1.5 1.5 1.6 
  62. Articles of apparel and clothing 
accessories, not knitted or crocheted  0.6 0.6 0.5 0.5 0.4 0.4 
  61. Articles of apparel and clothing 
accessories, knitted or crocheted  0.5 0.4 0.4 0.4 0.4 0.4 
  63. Other made up textile articles; sets; 
worn clothing and worn textile articles; rags  0.3 0.3 0.3 0.3 0.4 0.3 
12 - Footwear, headgear, umbrellas, sun 
umbrellas, walking -sticks, seat-sticks, whips, 
riding -crops and parts thereof; prepared 
feathers and articles made therewith  0.2 0.2 0.2 0.2 0.1 0.2 
13 - Articles of stone, plaster, cement, asbestos, 
mica or similar materials; ceramic products; 
glass and glassware  1.0 0.9 0.8 0.9 0.9 1.0 
  70. Glass and glassware  0.4 0.4 0.4 0.4 0.4 0.4 
14 - Natural or cultured pearls, precious or 
semi-precious stones, precious metals  2.0 1.7 1.5 1.6 1.9 1.9 WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Descrip tion 2016  2017  2018  2019  2020  2021  
15 - Base metals and articles of base metal  4.2 4.1 4.3 4.0 4.2 5.0 
  73. Articles of iron or steel  1.4 1.4 1.5 1.5 1.5 1.6 
  72. Iron and steel  0.5 0.6 0.8 0.7 0.7 1.2 
  74. Copper and articles thereof  0.5 0.5 0.5 0.5 0.5 0.6 
  83. Miscellaneous articles of base metal  0.6 0.6 0.6 0.6 0.6 0.6 
  76. Aluminium and articles thereof  0.5 0.3 0.4 0.3 0.4 0.5 
16 - Machinery and mechanical appliances; 
electrical equipment; parts thereof  36.9 36.0 34.9 34.9 36.1 34.8 
  85. Electrical machinery and equipment; 
image and sound recorders and reproducers  20.4 19.9 18.2 17.4 18.0 17.5 
  84. Nuclear reactors, boilers, machinery and 
mechanical appliances  16.5 16.1 16.7 17.5 18.1 17.3 
17 - Vehicles, aircraft, vessels and associated 
transport equipment  24.7 25.8 26.6 27.5 24.9 24.0 
  87. Vehicles other than railway or tramway 
rolling -stock  23.6 24.8 25.6 26.3 24.1 23.1 
  86. Railway or tramway locomotives, rolling -
stock; mechanical equipment  0.8 0.6 0.6 0.8 0.5 0.4 
18 - Optical, photographic, cinematographic, 
measuring, checking or precision instruments 
and apparatus  4.4 4.3 4.3 4.4 4.5 4.2 
  90. Optical, photographic and precision 
instruments and apparatus; medical or 
surgical instruments and apparatus  4.3 4.3 4.2 4.3 4.5 4.2 
19 - Arms and ammunition; parts and 
accessories thereof  0.0 0.0 0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles  3.5 3.3 3.0 2.8 2.8 2.9 
  94. Furniture; bedding, mattresses, mattress 
supports, cushions and similar stuffed 
furnishings  2.8 2.6 2.4 2.2 2.2 2.2 
  95. Toys, games  0.4 0.4 0.4 0.3 0.3 0.4 
21 - Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 
Other 1.3 1.3 1.4 1.7 1.8 1.6 
Sourc e: WTO Secretariat calculations, based on data provided by the authorities . 
  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table A1. 2 Merchandise imports by HS section and main chapter, 2016 -21 
(USD million and  %) 
Descrip tion 2016  2017  2018  2019  2020  2021  
 (USD million ) 
Total imports  387,088 420,395 464,302 455,242 382,986 505,716 
 (% of imports ) 
1 - Live animals; animal products  1.6 1.6 1.5 1.6 1.7 1.7 
 02. Meat and edible meat offal  0.9 0.9 0.8 0.9 0.9 1.0 
 04. Dairy produce; birds' eggs; natural 
honey; edible products of animal origin  0.4 0.4 0.4 0.5 0.5 0.4 
 03. Fish and crustaceans, molluscs and 
other aquatic invertebrates  0.2 0.2 0.2 0.1 0.1 0.2 
2 - Vegetable products  2.5 2.5 2.5 2.5 3.0 3.2 
 10. Cereals  1.1 1.1 1.1 1.1 1.3 1.5 
 12. Oil seeds and oleaginous fruits; 
industrial or medicinal plants; straw and 
fodder  0.8 0.8 0.7 0.8 0.9 1.0 
 08. Edible fruit and nuts; peel of citrus fruit 
or melons  0.2 0.2 0.3 0.3 0.3 0.3 
 11. Products of the milling industry; malt; 
starches; inulin; wheat gluten  0.1 0.1 0.1 0.2 0.2 0.2 
3 - Animal or vegetable fats and oils  0.3 0.3 0.3 0.2 0.3 0.4 
4 - Prepared foodstuffs; beverages, spirits and 
vinegar; tobacco and manufactured tobacco 
substitutes  1.9 1.7 1.6 1.7 1.9 1.7 
 23. Residues and waste from the food 
industries; animal fodder  0.4 0.4 0.3 0.4 0.4 0.4 
 21. Miscellaneous edible preparations  0.4 0.3 0.3 0.3 0.4 0.3 
 22. Beverages, spirits and vinegar  0.3 0.3 0.2 0.2 0.2 0.2 
 20. Preparations of vegetables, nuts or 
other parts of plants  0.2 0.2 0.2 0.2 0.2 0.2 
 19. Preparations of cereals, flour, starch or 
milk 0.2 0.1 0.1 0.2 0.2 0.2 
 17. Sugars and sugar confectionery  0.2 0.2 0.2 0.2 0.2 0.2 
5 - Mineral products  6.8 8.8 10.4 9.5 7.2 9.1 
 27. Mineral fuels; bituminous substances; 
mineral waxes  6.5 8.5 10.0 9.0 6.6 8.5 
 26. Ores, slag and ash  0.2 0.2 0.3 0.3 0.4 0.4 
6 - Products of the chemical or allied industries  6.8 6.9 6.9 6.8 7.8 7.7 
 29. Organic chemicals  1.9 2.1 2.1 1.8 1.9 2.1 
 38. Miscellaneous chemical products  1.1 1.1 1.1 1.2 1.5 1.6 
 30. Pharmaceutical products  1.1 1.0 1.0 1.1 1.3 1.2 
 28. Inorganic chemicals  0.5 0.5 0.6 0.6 0.7 0.7 
 33. Essential oils and resinoids; perfumery 
or cosmetic preparations  0.7 0.7 0.7 0.7 0.8 0.7 
 32. Tanning or dyeing extracts; dyes, 
pigments; paints and varnishes  0.5 0.5 0.5 0.5 0.6 0.5 
7 - Plastics and articles thereof  7.3 7.1 7.0 6.9 7.2 7.4 
 39. Plastics and articles thereof  5.7 5.5 5.4 5.4 5.7 5.9 
 40. Rubber and articles thereof  1.6 1.6 1.5 1.5 1.5 1.5 
8 - Raw hides and skins, leather, furskins and 
articles thereof; saddlery and harness  0.5 0.5 0.4 0.4 0.3 0.3 
9 - Wood and articles of wood; wood charcoal  0.4 0.4 0.4 0.4 0.4 0.5 
 44. Wood and articles of wood; wood 
charcoal  0.4 0.4 0.4 0.4 0.4 0.5 
10 - Pulp of wood or of other fibrous cellulosic 
material; paper and paperboard and articles 
thereof  1.8 1.7 1.7 1.7 1.7 1.6 
 48. Paper and paperboard; articles of paper 
pulp, of paper or of paperboard  1.4 1.3 1.3 1.3 1.3 1.2 
11 - Textiles and textile articles  2.6 2.4 2.4 2.3 2.3 2.2 
 61. Articles of apparel and clothing 
accessories, knitted or crocheted  0.5 0.4 0.4 0.5 0.5 0.5 
 62. Articles of apparel and clothing 
accessories, not knitted or crocheted  0.4 0.4 0.4 0.4 0.3 0.3 
 54. Man-made filaments  0.3 0.3 0.2 0.2 0.2 0.2 
 63. Other made up textile articles; sets; 
worn clothing and worn textile articles; 
rags 0.2 0.2 0.2 0.2 0.3 0.2 
 52. Cotton  0.2 0.2 0.2 0.2 0.1 0.2 
 59. Impregnated, coated, covered or 
laminated textile fabrics  0.3 0.3 0.3 0.2 0.2 0.2 WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Descrip tion 2016  2017  2018  2019  2020  2021  
 56. Wadding, felt and nonwovens; special 
yarns; twine; cables and articles thereof  0.2 0.2 0.2 0.2 0.2 0.2 
12 - Footwear, headgear, umbrellas, sun 
umbrellas, walking -sticks, seat -sticks, whips, 
riding -crops and parts thereof; prepared 
feathers and articles made therewith  0.3 0.3 0.3 0.3 0.3 0.3 
13 - Articles of stone, plaster, cement, 
asbestos, mica or similar materials; ceramic 
products; glass and glassware  0.8 0.8 0.7 0.7 0.7 0.7 
 70. Glass and glassware  0.4 0.4 0.3 0.4 0.4 0.3 
14 - Natural or cultured pearls, precious or 
semi-precious stones, precious metals  0.3 0.2 0.2 0.2 0.2 0.2 
15 - Base metals and articles of base metal  8.0 8.2 8.3 8.1 8.0 9.6 
 72. Iron and steel  2.2 2.4 2.5 2.4 2.3 3.5 
 73. Articles of iron or steel  2.3 2.2 2.1 2.2 2.1 2.2 
 76. Aluminium and articles thereof  1.4 1.4 1.5 1.5 1.5 1.7 
 74. Copper and articles thereof  0.7 0.7 0.7 0.7 0.7 0.9 
 83. Miscellaneous articles of base metal  0.7 0.6 0.6 0.6 0.6 0.6 
 82. Tools, implements, cutlery, of base 
metal  0.6 0.6 0.6 0.5 0.5 0.5 
16 - Machinery and mechanical appliances; 
electrical equipment; parts thereof  39.1 37.3 37.1 37.7 38.8 35.7 
 85. Electrical machinery and equipment; 
sound and image recorders and 
reproducers  21.8 20.4 20.4 20.8 21.6 20.0 
 84. Nuclear reactors, boilers, machinery 
and mechanical appliances  17.3 16.9 16.7 16.9 17.2 15.7 
17 - Vehicles, aircraft, vessels and associated 
transport equipment  10.0 10.2 9.7 9.7 8.6 8.0 
 87. Vehicles other than railway or tramway 
rolling -stock  9.6 9.9 9.3 9.4 8.4 7.7 
18 - Optical, photographic, cinematographic, 
measuring, checking or precision instruments 
and apparatus  3.9 3.7 3.4 3.7 4.2 4.1 
 90. Optical, photographic or precision 
instruments and apparatus; medical or 
surgical instruments and apparatus  3.7 3.6 3.3 3.6 4.1 4.0 
19 - Arms and ammunition; parts and 
accessories thereof  0.0 0.0 0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles  1.7 1.7 1.6 1.6 1.5 1.5 
 94. Furniture; bedding, mattresses, 
mattress supports, cushions and similar 
stuffed furnishings  1.0 0.9 0.9 0.8 0.8 0.8 
 95. Toys, games  0.5 0.5 0.5 0.5 0.5 0.5 
21 - Works of art, collectors' pieces and 
antiques  0.0 0.0 0.0 0.0 0.0 0.0 
Other 3.3 3.6 3.7 3.9 4.0 4.0 
Sourc e: WTO Secretariat calculations, based on data provided by the authorities . 
  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table A1. 3 Merchandise exports by trading partner , 2016 -21 
(USD million and  %) 
Descrip tion 2016  2017  2018  2019  2020  2021  
 (USD million ) 
Total exports  373,954 409,433 450,713 460,604 416,999 494,225 
 (% of exports ) 
America 89.0 88.0 87.9 88.4 88.2 88.2 
 United States  80.9 79.8 79.5 80.5 81.2 80.7 
 Other America  8.1 8.1 8.4 7.9 7.0 7.5 
 Canad a 2.8 2.8 3.1 3.1 2.7 2.6 
 Brazil 0.8 0.9 1.0 0.9 0.7 0.7 
 Colombia  0.8 0.8 0.8 0.8 0.6 0.7 
 Guatemala  0.5 0.4 0.4 0.4 0.5 0.5 
 Chile 0.5 0.4 0.5 0.4 0.3 0.4 
 Peru 0.4 0.4 0.4 0.3 0.3 0.3 
 El Salvador  0.2 0.2 0.2 0.2 0.2 0.3 
 Panam a 0.2 0.2 0.3 0.3 0.3 0.3 
 Honduras  0.2 0.2 0.2 0.2 0.2 0.2 
 Costa Rica  0.2 0.2 0.2 0.2 0.2 0.2 
 Nicaragua  0.3 0.2 0.2 0.2 0.2 0.2 
 Argentina  0.4 0.4 0.3 0.2 0.2 0.2 
 Dominican Republic  0.2 0.2 0.1 0.1 0.1 0.1 
 Ecuador  0.1 0.2 0.2 0.1 0.1 0.1 
 Trinidad and Tobago 0.0 0.0 0.0 0.0 0.0 0.1 
 Cuba 0.1 0.1 0.1 0.1 0.1 0.1 
 Uruguay  0.0 0.1 0.0 0.0 0.0 0.1 
 Venezuela, Bolivarian Republic of  0.2 0.3 0.2 0.1 0.1 0.0 
Europ e 5.5 5.9 5.9 5.5 5.3 5.4 
 EU (27) 4.3 5.1 5.0 3.9 3.9 3.7 
 Germany  1.1 1.7 1.6 1.5 1.6 1.5 
 Netherlands  0.4 0.5 0.6 0.5 0.5 0.5 
 Spain  0.9 1.0 1.0 0.3 0.3 0.3 
 Belgium  0.4 0.5 0.5 0.3 0.3 0.3 
 Franc e 0.5 0.5 0.4 0.3 0.3 0.3 
 EFTA 0.3 0.2 0.2 0.2 0.3 0.3 
 Switzerland  0.2 0.2 0.2 0.2 0.2 0.3 
 Other  Europ e 0.9 0.6 0.7 1.5 1.2 1.4 
 Other Europe , n.e. s. 0.0 0.0 0.1 0.8 0.5 0.7 
 United Kingdom  0.9 0.6 0.5 0.6 0.6 0.6 
 Türkiye  0.1 0.1 0.1 0.1 0.1 0.1 
Commonwealth of Independent States (CIS)a 0.1 0.1 0.1 0.1 0.1 0.1 
 Russian Federation  0.0 0.1 0.1 0.1 0.1 0.1 
Africa 0.2 0.2 0.2 0.2 0.2 0.2 
 South Africa  0.1 0.0 0.1 0.1 0.0 0.0 
Middle East  0.2 0.2 0.2 0.3 0.3 0.2 
 United Arab Emirates  0.1 0.1 0.1 0.1 0.1 0.1 
 Saudi Arabia, Kingdom of  0.0 0.0 0.1 0.1 0.1 0.1 
 Israel  0.1 0.1 0.1 0.1 0.0 0.1 
Asia 5.0 5.6 5.7 5.5 5.8 5.9 
 China  1.4 1.6 1.6 1.5 1.9 1.9 
 Japan 1.0 1.0 0.9 0.9 0.9 0.8 
 Other  Asia 2.5 3.0 3.2 3.1 3.1 3.2 
 Chinese Taipei  0.1 0.1 0.4 1.4 1.0 1.5 
 Korea, Rep ublic of  0.7 0.8 0.8 0.5 0.8 0.7 
 Australia  0.2 0.3 0.3 0.2 0.2 0.2 
 Hong Kong, China  0.2 0.2 0.2 0.2 0.3 0.2 
 Singap ore 0.2 0.2 0.3 0.2 0.2 0.2 
 India 0.6 0.8 0.9 0.2 0.2 0.1 
Other 0.0 0.0 0.0 0.0 0.0 0.0 
MEMORANDUM:        
European Union  (28) 5.1 5.7 5.5 4.5 4.5 4.3 
North American Free Trade Agreement  83.7 82.6 82.6 83.6 83.9 83.3 
a Commonwealth of Independent States, including some associate and former member States . 
Sourc e: WTO Secretariat calculations, based on data provided by the authorities . 
  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table A1. 4 Merchandise imports by trading partner , 2016 -21a 
(USD million and  %) 
Descrip tion 2016  2017  2018  2019  2020  2021  
 (USD million ) 
Total imports  387,088 420,395 464,302 455,242 382,986 505,716 
 (% of imports ) 
America 52.1 51.9 52.1 50.6 49.3 49.7 
 United States  46.5 46.4 46.6 45.3 43.9 43.8 
 Other  America 5.7 5.5 5.5 5.4 5.4 5.9 
 Canad a 2.5 2.3 2.3 2.2 2.2 2.2 
 Brazil 1.2 1.3 1.4 1.5 1.5 1.7 
 Chile 0.3 0.4 0.4 0.3 0.3 0.4 
 Colombia  0.3 0.4 0.4 0.4 0.3 0.3 
 Argentina  0.2 0.2 0.2 0.2 0.2 0.2 
 Nicaragua  0.2 0.1 0.1 0.1 0.1 0.2 
 Costa Rica  0.1 0.1 0.1 0.1 0.2 0.2 
 Peru 0.1 0.1 0.1 0.1 0.1 0.1 
 Guatemala  0.1 0.1 0.1 0.1 0.1 0.1 
 Honduras  0.1 0.1 0.1 0.1 0.1 0.1 
 Trinidad and Tobago 0.1 0.1 0.1 0.1 0.1 0.1 
 Uruguay  0.1 0.1 0.1 0.1 0.1 0.1 
 El Salvador  0.0 0.0 0.1 0.1 0.1 0.1 
Europ e 11.7 12.4 12.2 12.0 11.7 11.2 
 EU (27) 10.4 11.1 10.9 10.8 10.5 10.0 
 Germany  3.6 3.9 3.8 3.9 3.6 3.4 
 Italy 1.4 1.5 1.4 1.3 1.3 1.2 
 Spain  1.2 1.2 1.2 1.0 1.0 0.9 
 Franc e 1.0 1.0 0.9 1.0 0.9 0.8 
 Netherlands  0.5 0.6 0.5 0.5 0.5 0.5 
 EFTA 0.5 0.4 0.4 0.4 0.4 0.4 
 Switzerland  0.4 0.4 0.4 0.4 0.4 0.4 
 Other Europe  0.8 0.8 0.8 0.8 0.7 0.8 
 United Kingdom  0.5 0.6 0.5 0.5 0.5 0.4 
 Türkiye  0.2 0.2 0.2 0.2 0.2 0.3 
Commonwealth of Independ ent States 
(CIS)a 0.4 0.4 0.4 0.3 0.2 0.5 
 Russian Federation  0.3 0.3 0.4 0.3 0.2 0.4 
Africa 0.2 0.3 0.5 0.3 0.3 0.3 
 South Africa  0.1 0.1 0.1 0.1 0.1 0.1 
 Morocco  0.1 0.1 0.1 0.1 0.1 0.1 
Middle East  0.3 0.3 0.3 0.3 0.3 0.4 
 Israel  0.2 0.2 0.1 0.2 0.2 0.2 
 United Arab Emirates  0.1 0.1 0.1 0.1 0.1 0.1 
Asia 35.2 34.8 34.5 36.4 38.1 38.0 
 China  18.0 17.6 18.0 18.2 19.2 20.0 
 Japan 4.6 4.3 3.9 3.9 3.6 3.4 
 Other  Asia 12.7 12.8 12.6 14.2 15.3 14.6 
 Korea, Rep ublic of  3.5 3.7 3.6 3.9 3.8 3.8 
 Malaysia 2.1 1.9 2.0 2.5 2.8 2.5 
 Chinese Taipe i 1.8 1.8 1.8 2.0 2.3 2.3 
 Viet Nam  1.0 1.1 0.9 1.3 1.7 1.7 
 Thailand  1.4 1.4 1.4 1.3 1.4 1.3 
 India 1.1 1.2 1.1 1.1 1.1 1.2 
Other 0.0 0.0 0.0 0.0 0.0 0.0 
MEMORANDUM:        
European Union  (28) 11.0 11.7 11.4 11.3 10.9 10.4 
Southern Common Market  1.6 1.6 1.7 1.7 1.7 1.9 
North American Free Trade Agreement  48.9 48.6 48.8 47.4 46.1 45.9 
a Commonwealth of Independent States, including some associate and former member States . 
Sourc e: WTO Secretariat calculations, based on data provided by the authorities . 
  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Table A2. 1 Measures notified  to the WTO, 2017 -22 (31 May)  
Agreement/Decision  Type of measure 
notified  Frequency  WTO document  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article 63.2  Laws/regulations made 
effective by the notifying 
Member; amendment of a 
law/regulation  Once only; ad 
hoc 
(amendment)  IP/N/1/MEX/23; IP/N/1/MEX/C/9, 
28/9/2020  
IP/N/1/MEX/22/Rev.1; 
IP/N/1/MEX/E/1/Rev.1, 24/9/2020  
IP/N/1/MEX/21; IP/N/1/MEX/I/15, 
30/7/2020  
IP/N/1/MEX/20; IP/N/1/MEX/G/9, 
26/2/2020  
IP/N/1/MEX/19; IP/N/1/MEX/G/8, 
19/9/2019  
IP/N/1/MEX/18; IP/N/1/MEX/I/14, 
30/5/2018  
IP/N/1/MEX/17; IP/N/1/MEX/G/7, 
24/5/2018  
IP/N/1/MEX/16; IP/N/1/MEX/I/13, 
29/3/2018  
IP/N/1/MEX/15; IP/N/1/MEX/I/12, 
14/2/2017  
Agreement on Agriculture  
Articles 10 and 18.2; 
ES:1 Export subsidies  On an annual 
basis G/AG/N/MEX/54, 2/6/2021  
Articles 10 and 18.2; 
ES:2 Export subsidies  On an annual 
basis G/AG/N/MEX/45, 18/3/2019  
Article 18.2; DS:1  Domestic support  On an annual 
basis G/AG/N/MEX/55, 25/10/2019  
Article 18.2; MA:2  Market access - volume of 
imports under tariff and 
other quotas  On an annual 
basis G/AG/N/MEX/47, 15/7/2019  
Articles 5.7 and 18.2; 
MA:5 Market access - special 
safeguard provisions  On an annual 
basis G/AG/N/MEX/50, 20/5/2021  
General Agreement on Trade in Services  
Articles III:4 and/or 
IV:2 Enquiry points/contact 
points  Ad hoc  S/ENQ/78/Rev.22, 10/2/2022  
Article V:7(a)  Economic integration 
agreements  Once only  S/C/N/1060, 28/6/2021  
S/C/N/1017, 17/9/2020  
S/C/N/920, 20/12/2018  
S/C/N/4/Add.1, 9/10/2020  
Enabling Clause - regional trade agreements  
Paragraph 4(a)  Preferential arrangements 
among developing 
countries  Ad hoc  WT/COMTD/RTA15/N/1, 3/3/2020  
WT/COMTD/RTA8/N/1, 30/7/2019  
WT/COMTD /RTA7/N/1, 30/7/2019  
WT/COMTD/RTA6/N/1, 30/7/2019  
WT/COMTD/RTA5/N/1, 30/7/2019  
WT/COMTD/RTA4/N/1, 30/7/2019  
WT/COMTD/RTA3/N/1, 30/7/2019  
WT/COMTD/N/53, 19/6/2017  
Agreement on Implementation of Article VI of the GATT  (anti -dumping)  
Article 16.4 - Ad hoc  
reports  Anti-dumping actions 
(preliminary and final)  Ad hoc  G/ADP/N/369, 4/5/2022 - 
G/ADP/N/295, 30/1/2017  
Article 16.4 – 
Semi-annual reports  Anti-dumping actions 
(taken within the 
preceding six months)  On a semi -
annual basis  G/ADP/N/364/MEX, 21/3/2022  
GATT 1994  
Article XXIV:7(a)  Formation of a free -trade 
area Ad hoc  WT/REG456/N/1, 28/6/2021  
WT/REG407/N/1, 17/9/2020  
WT/REG395/N/1, 20/12/2018  
Agreement on Import Licensing Procedures  
Article 7.3  Replies to the 
questionnaire on import 
licensing procedures  On an annual 
basis G/LIC/N/3/MEX/7, 2/6/2021  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, Annex B  Sanitary/phytosanitary 
regulations  Ad hoc  G/SPS/N/MEX/406, 8/4/2022 - 
G/SPS/N/MEX/307, 9/1/2017  WT/TPR/S/429 /Rev.1  • Mexico  
 
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  Agreement/Decision  Type of measure 
notified  Frequency  WTO document  
Agreement on Rules of Origin  
Article 5 and Annex  II.4 
- Ad hoc  Changes to 
laws/regulations 
(modifications to 
preferential and non -
preferential rules of origin; 
new preferential rules of 
origin)  Ad hoc  G/RO/N/210, 4/2/2021  
G/RO/N/186, 15/4/2019  
Article 5 and Annex  II.4 
- First time  Preferential and non-
preferential rules of origin 
in force  Once only  G/RO/N/154, 21/7/2017  
Agreement on Trade Facilitation  
Article 1.4  Publication of all 
procedures for 
importation, exportation 
and transit, including fees 
imposed  Ad hoc  G/TFA/N/MEX/1, 28/9/2018  
Article 10.4.3  Single window  Ad hoc  
Article 10.6.2  Customs brokers  Ad hoc  
Article 12.2.2  Contact point for the 
exchange of information  Ad hoc  
Agreement on Technical Barriers to Trade  
Article 2.9  Technical regulations  Ad hoc  G/TBT/N/MEX/510, 12/5/2022 - 
G/TBT/N/MEX/344, 17/1/2017  
Articles 2.9 and 5.6  Technical regulations and 
conformity assessment 
procedures  Ad hoc  G/TBT/N/MEX/511, 13/5/2022  
G/TBT/N/MEX/509, 28/4/2022  
G/TBT/N/MEX/507, 17/2/2022  
G/TBT/N/MEX/503, 12/10/2021  
G/TBT/N/MEX/500, 19/8/2021  
G/TBT/N/MEX/461, 16/12/2019  
G/TBT/N/MEX/404, 25/4/2018  
G/TBT/N/MEX/395, 21/2/2018  
Article 2.10  Technical regulations 
(urgent)  Ad hoc  G/TBT/N/MEX/505, 8/11/2021 - 
G/TBT/N/MEX/345, 19/1/2017  
Article 5.6  Conformity assessment 
procedures  Ad hoc  G/TBT/N/MEX/496, 30/4/2021  
G/TBT/N/MEX/477, 28/9/2020  
G/TBT/N/MEX/472, 24/7/2020  
G/TBT/N/MEX/465, 5/5/2020  
Articles to be 
determined  Technical regulations  Ad hoc  G/TBT/N/MEX/497, 28/6/2021  
Agreement on Subsidies and Countervailing Measures  
Article 25.1 - GATT 
Article XVI:1  Subsidies  On an annual 
basis G/SCM/N/372/MEX, 12/1/2022  
Article 25.11 - Ad hoc  
reports  Countervailing duty actions 
(preliminary and final)  Ad hoc  G/SCM/N/374, 19/2/2021  
G/SCM/N/352, 14/8/2019  
G/SCM/N/344, 25/1/2019  
G/SCM/N/337, 30/8/2018  
G/SCM/N/324/Rev.1, 6/2/2018  
G/SCM/N/329/Rev.1, 5/2/2018  
Article 25.11 – 
Semi-annual reports  Countervailing measures 
(taken within the 
preceding six months)  On a semi -
annual basis  G/SCM/N/379/MEX, 17/9/2021  
Source:  WTO Secretariat.  
  WT/TPR/S/429 /Rev.1  • Mexico  
 
- 173 - 
 
  Table A3. 1 Summary analysis of the MFN tariff, 2021  
Product d escription  MFN Bound  
tariff rangea  
(%) Number  
 of lines  Average  
(%) Range  
(%) Coefficient 
of variation  
(CV)  
Total  7,802  6.7 0 - 75 1.3 0 - 254 
HS 01 -24 1,101  14.2 0 - 75 0.8 0 - 254 
HS 25 -97 6,701  5.5 0 - 50 1.3 0 - 156 
By WTO category  
Agricultural products  905 13.2 0 - 75 0.9 0 - 254 
 - Animals and animal products  135 15.5 0 - 75 1.0 9 - 254 
 - Dairy products  30 22.1 0 - 45 0.7 18 - 156 
 - Fruit, vegetables and garden 
produce  252 15.1 0 - 75 0.5 5 - 245 
 - Coffee and tea  26 21.1 0 - 45 0.8 25 - 156 
 - Cereals and cereal preparations  117 9.9 0 - 45 0.8 9 - 194 
 - Oilseeds, fats and oils and their 
products  92 7.4 0 - 45 1.1 0 - 254 
 - Sugar and confectionery  20 30.0 7.3 - 75 0.8 45 - 210.4  
 - Beverages, alcohol and tobacco  61 24.4 0 - 67 0.6 36 - 67.5 
 - Cotton  5 0.0 0 - 0 n.a. 37 - 45 
 - Other agricultural products n.e.s.  167 6.8 0 - 36 1.1 0 - 45 
Non-agricultural products (including 
petroleum)  6,897  5.9 0 - 50 1.3 0 - 156 
 - Non-agricultural products 
(excluding petroleum)  6,888  5.9 0 - 50 1.3 0 - 156 
 - - Fish and fish products  276 13.8 0 - 20 0.4 30 - 45 
 - - Mineral products and metals  1,166  4.4 0 - 15 1.4 0 - 50 
 - - Chemicals and photographic 
products  1,647  2.7 0 - 20 1.5 0 - 156 
 - - Wood, wood pulp, paper and 
furniture  377 4.8 0 - 20 1.2 0 - 50 
 - - Textiles  644 9.4 0 - 25 0.5 10 - 50 
 - - Clothing  265 21.4 20 - 25 0.1 35 - 50 
 - - Leather, rubber, footwear and 
travel articles  234 7.3 0 - 30 1.3 20 - 50 
 - - Non-electrical machinery  877 4.4 0 - 20 1.4 20 - 50 
 - - Electrical machinery  488 4.0 0 - 20 1.5 10 - 50 
 - - Transport equipment  302 8.8 0 - 50 1.6 10 - 50 
 -- Non-agricultural products n.e.s.  612 5.5 0 - 20 1.2 10 - 50 
 - Petroleum  9 0.3 0 - 3 2.8 35 - 50 
By HS section  
01 Live animals; animal products  425 14.2 0 - 75 0.7 0 - 254 
02 Vegetable products  363 12.3 0 - 75 0.7 0 - 245 
03 Fats and oils  54 8.1 0 - 20 0.8 18 - 254 
04 Prepared foodstuffs, etc.  259 18.8 0 - 75 0.7 18 - 210.4  
05 Mineral products  162 0.3 0 - 10 5.0 0 - 50 
06 Products of the chemical or allied 
industries  1,487  2.3 0 - 20 1.6 0 - 156 
07 Plastics and rubber  368 4.7 0 - 15.9 1.2 10 - 50 
08 Raw hides and skins, and leather  76 5.9 0 - 20 1.5 9 - 35 
09 Wood and articles of wood  157 6.2 0 - 15 1.0 10 - 35 
10 Pulp of wood, paper, etc.  191 2.8 0 - 15 1.4 0 - 50 
11 Textiles and textile articles  895 12.8 0 - 25 0.6 9 - 50 
12 Footwear and headgear  82 14.4 0 - 30 0.7 35 - 35 
13 Articles of stone  187 6.6 0 - 15 1.0 10 - 50 
14 Precious stones, etc.  60 3.6 0 - 15 1.7 35 - 35 
15 Base metals and articles of base 
metal  774 5.0 0 - 15 1.3 0 - 50 
16 Machinery and mechanical 
appliances  1,379  4.2 0 - 20 1.5 10 - 50 WT/TPR/S/429 /Rev.1  • Mexico  
 
- 174 - 
 
  Product d escription  MFN Bound  
tariff rangea  
(%) Number  
 of lines  Average  
(%) Range  
(%) Coefficient 
of variation  
(CV)  
17 Vehicles, aircraft, vessels and 
associated transport equipment  314 8.6 0 - 50 1.6 10 - 50 
18 Precision instruments  317 3.2 0 - 15 1.6 10 - 50 
19 Arms and ammunition  25 10.8 0 - 15 0.5 35 - 35 
20 Miscellaneous manufactured 
articles  218 8.8 0 - 20 0.8 25 - 35 
21 Works of art, etc.  9 0.0 0 - 0 n.a. 35 - 35 
n.a. Not applicable.  
a The bindings are given in HS 2012 and the applied tariffs in HS 2017; consequently, there may be 
differences in the number of lines included in the analysis.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
  
  WT/TPR/S/4 29/Rev.1  • Mexico  
 
- 175 - Table A3. 2 Multilateral (WTO) tariff quotas and import volume, 2020  
Description 
(HS code)  Applied MFN tariff  Bound MFN 
quota volume 
(tonnes)  Import volume 
under quota, 
2020  Quota usage 
(%) % of total value of imports  
In-quota  Out-of-quota  2020  Jan‐June 
2021  
Total imports (USD million)     383,194  235,096  
Meat and edible offal  of poultry  1,000  n.a.a n.a. 0.1 0.2 
0207.14.99  50 75    0.0 0.1 
0207.26.03  50 75    0.0 0.1 
0207.27.99  50 75    0.0 0.0 
0207.44.01  50 0    .. .. 
0207.45.99  50 0    0.0 0.0 
0207.54.01  50 0    .. .. 
0207.55.99  50 0    .. .. 
0207.60.03  50 0    .. .. 
Animal fats  2,111  n.a.a n.a. 0.0 0.0 
0209.10.01  50 15    0.0 0.0 
0209.90.01  50 0    0.0 0.0 
0209.90.99  50 15    .. .. 
1501.10.01  50 15    0.0 0.0 
1501.20.01  50 15    0.0 0.0 
1501.90.99  50 15    0.0 0.0 
1516.10.01  50 15    0.0 0.0 
Milk, in powder    80,000  4,577  5.7 0.2 0.2 
0402.10.01  0 45    0.2 0.2 
0402.21.01  0 45    0.0 0.0 
Sugar and products with a high sugar content  183,800  n.a.a n.a. 0.3 0.3 
0402.99.01  50 15% + US D 0.36/kg of sugar     0.0 0.0 
0402.99.99  50 20% + US D 0.36/kg of sugar     0.0 0.0 
1702.20.01  50 15    0.0 0.0 
1702.30.01  50 15    0.0 0.0 
1806.20.01  50 20% + US D 0.36/kg of sugar     0.0 0.0 
1806.32.01  50 20% + US D 0.36/kg of sugar     0.0 0.0 
1806.90.99  50 20% + US D 0.36/kg of sugar     0.0 0.0 
1901.90.03  50 10    0.0 0.0 
1901.90.04  50 10    0.0 0.0 
1901.90.05  50 45    0.0 0.0 
1901.90.99  50 10% + US D 0.36/kg of sugar     0.0 0.0 
2101.11.02  50 45  n.a.b  0.0 0.0 
2101.11.99  50 45  n.a.b  0.0 0.0 
2101.12.01  50 45  n.a.b  0.0 0.0 
2103.90.99  50 20  n.a.c  0.1 0.1 
2106.90.01  50 15    .. .. 
2106.90.99  50 15% + US D 0.36/kg of sugar     0.1 0.1 
2202.99.01  50 10    0.0 0.0  
  WT/TPR/S/4 29/Rev.1  • Mexico  
 
- 176 - Description 
(HS code)  Applied MFN tariff  Bound MFN 
quota volume 
(tonnes)  Import volume 
under quota, 
2020  Quota usage 
(%) % of total value of imports  
In-quota  Out-of-quota  2020  Jan‐June 
2021  
2202.99.02  50 20    0.0 0.0 
2202.99.03  50 20    0.0 0.0 
2202.99.04  50 20    0.0 0.0 
2202.99.99  50 20% + US D 0.36/kg of sugar     0.0 0.0 
Hard and medium -hard c heese  2,405  n.a.b n.a. 0.0 0.0 
0406.10.01  50 45    0.0 0.0 
0406.30.02  50 45    .. 0.0 
0406.90.99  50 45    0.0 0.0 
Potatoes  1,000  n.a.a n.a. 0.0 0.0 
0701.90.99  50 75    0.0 0.0 
Beans, other than for sowing  5,000  n.a.c n.a. 0.0 0.0 
0713.33.99  50 45    0.0 0.1 
Coffee  20,800  n.a.b n.a. 0.0 0.0 
0901.21.01  50 45 (60 kg sacks)    0.0 0.0 
0901.22.01  50 45    0.0 0.0 
0901.90.99  50 45    0.0 0.0 
2101.11.02  50 45    0.0 0.0 
2101.11.99  50 45    0.0 0.0 
2101.12.01  50 45    0.0 0.0 
Wheat  98,076  n.a.a n.a. 0.3 0.3 
1001.11.01  50 15    0.0 0.0 
1001.19.99  50 15    0.0 0.0 
1001.91.01  50 0  n.a.b  0.0 0.0 
1001.91.99  50 15    0.0 0.0 
1001.99.01  50 0  n.a.b  0.3 0.3 
1001.99.99  50 15    0.0 0.0 
Barley  1,200  n.a.c n.a. 0.0 0.0 
1003.90.99  50 0    0.0 0.0 
Maize  (corn)  10,000  n.a.b n.a. 0.1 1.1 
1005.90.04  50 20    0.0 0.1 
1005.90.99  50 0    0.0 1.0 
9506.62.01  0 15    0.0 0.0 
.. Not available.  
n.a. Not applicable.  
a Mexico's imports on preferential terms exceed the amount of the WTO -bound quota.  
b Quota not used. Better market access conditions on MFN terms.  
c Quota not used. Better market access conditions on unilateral terms.  
Note:  The HS codes in bold also appear in the unilateral quotas.  
Source:  WTO document G/AG/N/MEX/54 of 2 June 2021 and information provided by the authorities.   
  WT/TPR/S/4 29/Rev.1  • Mexico  
 
- 177 - Table A3. 3 Unilateral tariff quotas and import volume, 2020  
Description (HS code)  Applied MFN tariff  Quota volume (tonnes)  Import volume under 
quota, 2020  Quota usage 
(%) % of total value of imports  
In-quota  Out-of-quota  2020  Jan‐June 2021  
Total imports (USD million)        383,194  235,096  
Meat of bovine animals  200,000  not in force  n.a. 0.2 0.2 
0201.10.01  0 20    .. .. 
0201.20.99  0 20    0.0 0.0 
0201.30.01  0 20    0.2 0.2 
0202.10.01  0 20    0.0 0.0 
0202.20.99  0 25    0.0 0.0 
0202.30.01  0 20    0.0 0.0 
Meat of swine   350,000  not in force  n.a. 0.4 0.4 
0203.12.01  0 20    0.3 0.3 
0203.19.99  0 20    0.0 0.0 
0203.22.01  0 20    0.0 0.0 
0203.29.99  0 20    0.0 0.0 
Chicken  300,000  not in force  n.a. 0.0 0.0 
0207.11.01  0 75    0.0 0.0 
0207.12.01  0 75    0.0 0.0 
Chicken and turkey cuts  100,000  14,258  14.3 0.1 0.3 
0207.13.04  0 75    0.0 0.1 
0207.14.99  0 75    0.0 0.1 
0207.26.03  0 75    0.0 0.1 
0207.27.99  0 75    0.0 0.0 
Duck, goose  200 0 0.0 0.0 0.0 
0207.42.01  10 0    0.0 0.0 
0207.52.01  10 0    .. .. 
0207.60.03  10 0    .. .. 
Fish fillets  55,000  17,255  31.4 0.1 0.1 
0304.31.01  0 15    0.0 0.0 
0304.32.01  0 15    0.0 0.0 
0304.61.01  0 15    0.0 0.0 
0304.62.01  0 15    0.0 0.0 
Egmont cheese  1,600  0 0.0 0.0 0.0 
0406.90.99  20 45    0.0 0.0 
Onions    100,000  0 0.0 0.0 0.0 
0703.10.02  0 10    0.0 0.0 
Beans, other than for sowing  100,000  0 0.0 0.0 0.1 
0713.33.99  0 45    0.0 0.1 
Lemons and limes  140,000  0 0.0 0.0 0.0 
0805.50.03  0 20    0.0 0.0  
  WT/TPR/S/4 29/Rev.1  • Mexico  
 
- 178 - Description (HS code)  Applied MFN tariff  Quota volume (tonnes)  Import volume under 
quota, 2020  Quota usage 
(%) % of total value of imports  
In-quota  Out-of-quota  2020  Jan‐June 2021  
Roasted and ground coffee in individual containers of a 
weight not exceeding 40 g  According to needs, based on 
domestic consumption and 
production  1,268  n.a. 0.0 0.0 
0901.21.01  0 45    0.0 0.0 
0901.22.01  0 45    0.0 0.0 
0901.90.99  0 45    0.0 0.0 
Barley  9,000  0 0.0 0.0 0.0 
1003.90.99  0 0    0.0 0.0 
Oats  140,000  0 0.0 0.0 0.0 
1004.90.99  0 0    0.0 0.0 
Rice 150,000  0 0.0 0.1 0.1 
1006.10.01  0 9    0.1 0.1 
1006.20.01  0 20    0.0 0.0 
1006.30.02  0 20    0.0 0.0 
1006.40.01  0 20    0.0 0.0 
Malt 9,000  0 0.0 0.1 0.1 
1107.10.01  0 0    0.1 0.1 
1107.20.01  0 0    0.0 0.0 
Wax 250 0 0.0 0.0 0.0 
1521.10.01  10 0    0.0 0.0 
Dairy preparations  44,200  4,334  9.8 0.0 0.0 
1901.90.05  0 45    0.0 0.0 
Coffee extract  372 143 38.4 0.0 0.0 
2101.11.02  20 45    0.0 0.0 
2101.11.99  20 45    0.0 0.0 
2101.12.01  20 45    0.0 0.0 
Oil-cake and other residues  700,000  0 0.0 0.2 0.2 
2304.00.01  0 0    0.2 0.2 
Textured polyester textile  According to needs, based on 
domestic production  0 0.0 0.0 0.0 
5402.33.01  0 5    0.0 0.0 
Motor vehicles  According to needs, based on 
domestic production  258,436  n.a. 1.7 1.7 
8702.10.99  0 20    0.0 0.0 
8702.20.99  0 20    0.0 0.0 
8703.21.99  0 20    0.0 0.0 
8703.22.01  0 20    0.5 0.5 
8703.23.01  0 20    0.8 0.7 
8703.24.01  0 20    0.2 0.2 
8703.31.01  0 20    0.0 0.0 
8703.32.01  0 20    0.0 0.0 
8703.33.01  0 20    0.0 0.0 
8703.80.01  0 0    0.0 0.0 
8704.21.99  0 20    0.0 0.1 
8704.31.99  0 20    0.1 0.2 
8704.90.01  0 0    0.0 0.0  
  WT/TPR/S/4 29/Rev.1  • Mexico  
 
- 179 - Description (HS code)  Applied MFN tariff  Quota volume (tonnes)  Import volume under 
quota, 2020  Quota usage 
(%) % of total value of imports  
In-quota  Out-of-quota  2020  Jan‐June 2021  
Toys According to needs, based on 
the sales value of domestic 
toy production  143,922  n.a. 0.2 0.1 
3924.90.99  0 15    0.0 0.0 
8715.00.01  0 10    0.0 0.0 
9401.80.01  0 10    0.0 0.0 
9503.00.01  0 15    0.0 0.0 
9503.00.02  0 15    0.0 0.0 
9503.00.03  0 15    0.0 0.0 
9503.00.04  0 15    0.0 0.0 
9503.00.05  0 15    0.0 0.0 
9503.00.06  0 15    0.0 0.0 
9503.00.11  0 15    0.0 0.0 
9503.00.12  0 15    0.0 0.0 
9503.00.14  0 15    0.0 0.0 
9503.00.15  0 15    0.0 0.0 
9503.00.16  0 15    0.0 0.0 
9503.00.20  0 15    0.0 0.0 
9503.00.24  0 15    0.0 0.0 
9503.00.99  0 15    0.0 0.0 
9504.90.99  0 15    0.0 0.0 
9506.62.01  0 15    0.0 0.0 
.. Not available.  
n.a. Not applicable.  
Note:  The HS codes in bold mean that quotas for these products were also negotiated in the WTO.  
Source:  WTO document G/AG/N/MEX/54 of 2  June 2021 and information provided by the authorities.  WT/TPR/S/429 /Rev.1  • Mexico  
 
- 180 - 
 
  Table A3. 4 Number of investigations initiated and concluded, and AD measures 
imposed, 2017 -21 
Product  HS code  Date of 
initiation  Duties in 
forcea Termination  Members  
Mushrooms of the 
genus Agaricus  2003.10.01   17/5/2006  3/4/2017  Chile 
Coated flat steel 
products  7210.30.01; 
7210.30.99;  
7210.41.01; 
7210.41.99;  
7210.49.01; 
7210.49.02;  
7210.49.03; 
7210.49.04;  
7210.49.99; 
7210.61.01;  
7210.70.01; 
7210.70.99;  
7212.20.01; 
7212.20.02;  
7212.20.99; 
7212.30.01;  
7212.30.02; 
7212.30.99;  
7212.40.03; 
7212.40.99;  
7225.91.01; 
7225.92.01;  
7226.99.01; 7226.99.02   5/6/2017   China;  
Chinese Taipei  
Carbon and alloy steel 
tubing with longitudinal 
seams and a circular, 
square or rectangular 
cross-section  7306.19.99; 
7306.30.01;  
7306.30.99; 7306.61.01   8/3/2018   China  
Seamless carbon steel 
tubing  7304.19.01; 
7304.19.02;  
7304.19.99; 
7304.39.05;  
7304.39.06; 7304.39.99   3/4/2018   Korea, Rep. of; 
Spain ; India; 
Ukraine  
Ceramic and porcelain 
dishware and loose 
articles  6911.10.01; 6912.00.01   29/5/2018   China  
Foil balloons  9503.00.23; 9505.90.99  26/6/2017  7/6/2018   China  
Polybutadiene -styrene 
rubber in emulsion  4002.19.01; 
4002.19.02; 
4002.19.03; 4002.19.99  10/8/2017  25/1/2019  25/1/2019 
(Poland)b Japan; Korea , Rep. 
of; Poland; 
United  State s  
Micro -wire for welding  7229.20.01; 
7229.90.99; 8311.90.01  10/8/2017  5/10/2018   China  
Steel plate in sheets  7208.51.01; 
7208.51.02; 
7208.51.03; 
7208.52.01; 7225.40.99  14/11/2017  30/4/2019   Italy; Japan 
Graphite electrodes for 
electric arc furnaces  8545.11.01   1/3/2012  15/1/2018  China; 
United  Kingdom  
Short -fibre polyester  5503.20.01; 5503.20.99  6/2/2018  1/7/2019   China  
Ethylene glycol 
monobutyl ether  2909.43.01   11/9/2012  6/3/2018  United  States  
Aluminium foil in rolls  7607.11.01  28/8/2018  27/12/2019   China  
Aluminium pressure 
cookers  7605.10.01  20/12/2018  26/12/2019   China  
Stainless steel flat 
products  7219.34.01; 
7219.35.01; 7220.20.02  5/4/2019  1/10/2020   China;  
Chinese Taipei  
Wind towers  8502.31.01  16/4/2019  5/10/2020   China  
Metal fasteners  9607.11.01  2/8/2019  6/1/2021   China  
Aluminium discs  7616.99.10  9/8/2019  6/11/2020   China  
Short -fibre polyester  5503.20.01; 
5503.20.02; 
5503.20.03; 5503.20.99   19/8/1993  16/8/2019  Korea, Rep. of 
Raschel -knit, synthetic -
fibre blankets  6301.40.01; 9404.90.99   26/5/2014  30/9/2019  China  
Hydraulic bottle jacks  8425.42.02  1/11/2019  6/1/2021   China  WT/TPR/S/429 /Rev.1  • Mexico  
 
- 181 - 
 
  Product  HS code  Date of 
initiation  Duties in 
forcea Termination  Members  
Dioctyl phthalate  2917.32.01  19/3/2020  1/9/2021   Korea, Rep. of; 
United  States   
Textile polyester 
filament, textured  5402.33.01  31/3/2020  29/9/2021   China; India  
Partially hydrogenated 
fatty a cid 3823.19.99   7/4/2005  23/7/2020  United  States  
Sodium 
hexametaphosphate  2835.39.02   3/8/2004  23/7/2020  China  
Stearic acid  3823.11.01; 3823.19.99   8/4/2005  30/7/2020  United  States  
Triethanolamine  2922.13.01  31/7/2020    United  States  
Carbon and alloy steel 
slab 7207.12.99; 
7207.20.99; 
7224.90.02; 7224.90.99  21/9/2020    Brazil; 
Russian  Federation  
Concrete steel nails  7317.00.99   29/11/2004  3/12/2020  China  
Carbon steel tubing 
with straight 
longitudinal seams  7305.11.01   5/1/2010  4/12/2020  United  Kingdom  
Steel plate in sheets  7208.51.01; 
7208.51.02; 
7208.51.03; 
7208.52.01; 
7225.40.01; 7225.40.02   14/10/2014  4/12/2020  China  
Blenders for domestic 
and commercial use  8509.40.99   9/12/2014  6/4/2021  China  
Coated flat steel 
products  7210.30.02; 
7210.41.01; 
7210.41.99; 
7210.49.99; 
7210.61.01; 
7210.70.02; 
7212.20.03; 
7212.30.03; 
7212.40.04; 
7225.91.01; 
7225.92.01; 7226.99.99  30/8/2021    Viet Nam 
Type I and type H steel 
beam  7216.32.99; 7216.33.01  31/8/2021    Germany ; 
Spain ; 
United  Kingdom  
a Date of publication in the Official Journal.  
b Neither provisional nor definitive duties were imposed on Poland.  
Source:  WTO Secretariat, based on information provided by the authorities.  
  WT/TPR/S/429 /Rev.1  • Mexico  
 
- 182 - 
 
  Table A3. 5 Overview of industrial property rights under the LFPPI  
(Changes introduced by the LFPPI  are highlighted in grey)  
Requirements  Term of protection  Exceptions  
Patents  
New inventions involving an 
inventive step that are industrially 
applicable  Non-renewable term of 
20 years from the filing date  The following are not patentable: 
(1) cloning processes and processes for 
modifying genetic identity, as well as the 
industrial or commercial use of human 
embryos; (2) plant varieties; (3) 
 essentially biological  processes for 
obtaining, reproducing and propagating 
plants and animals; (4) methods of 
treatment through surgery or therapy; 
and (5) the human body . 
Utility models  
New and industrially applicable 
utility models  Non-renewable term of 15 
years from the filing date  - 
Industrial designs  
New and industrially applicable 
industrial designs  Renewable term of five years 
from the patent filing date, 
up to a maximum of 25 years  Industrial designs are not registered 
where their appearance is determined 
solely by technical considerations.  
Layout -designs of integrated circuits  
Unusual and uncommon designs 
involving a creative step  Non-renewable term of 10 
years from the filing date  Original layout -designs (irrespective of 
whether or not they are incorpor ated into 
integrated circuits) which have been 
commercially used on a regular basis in 
Mexico or abroad can be protected only if 
the registration application is filed within 
two years of their first commercial use.  
Industrial secrets  
Any confidential information for 
industrial or commercial use, which 
can be used to maintain a 
competitive or economic advantage 
over competitors  For as long as the 
information remains 
confidential  Information that is public property, that is 
known to a person  skilled in the art or that 
has to be disclosed by legal provision or 
court order, shall not be considered an 
industrial secret.  
Trademarks  
Any sign that is perceptible by the 
senses and can be represented in a 
way that makes it possible to 
identify the object of the protection 
clearly and precisely, that 
distinguishes products or services 
from others of the same type or 
category in the market  Renewable term of 10 years 
from the date on which the 
registration is granted  The exceptions are listed in Article 173.  
Appellations of origin  
Designations for products whose 
quality, characteristics or reputation 
are exclusively or essentially due to 
the geographical origin of the raw 
materials, the production processes 
and natural a nd cultural factors  For as long as the conditions 
that justified the protection 
continue to exist  The exceptions are listed in Article 271.  
Geographical indications  
Designations for products whose 
quality, characteristics or reputation 
are attributed to the geographical 
origin of the raw materials, the 
production processes or natural and 
cultural factors  For as long as the conditions 
that justified the protection 
continue to exist  The exceptions are listed in Article 271.  
Source:  WTO Secretariat.  
  
  WT/TPR/S/429 /Rev.1  • Mexico  
 
- 183 - Table A4. 1 Air services agreements, 2017 -21 
  New agreements  Revised agreements  
Curaçao  Spain  Philippines  Finland  Iceland  Israel  Netherlands  Germany  Canada  El Salvador  
Signed 7/7/2021  20/4/2017  14/12/2021  14/2/2019  29/11/2021  14/9/2017  24/4/2018  2/5/2019  29/6/2017  21/8/2018  
Fifth freedom  No Yes, subject to prior approval by the aeronautical authorities  No Yes, subject to prior approval by the 
aeronautical authorities  
Seventh 
freedom  No No Freight: yes, 
subject to prior 
approval by 
the 
aeronautical 
authorities  
Cabotage  No No 
Airline 
designation  Multiple  Dual per 
pair of 
cities, 
except 
Cancun (up 
to four 
airlines)  Multiple  Multiple  Dual per pair 
of cities  Multiple  Multiple  Up to three  
airlines  Multiple  
Withholding  The airlines must be majority -owned and under the effective control of the State party or its nationals  The airlines must be majority -owned and 
under the effective control of the State party 
or its nationals  
Capacity  Free determination  Free determination  
Pricing  Free pricing  Free pricing  
Source:  Information provided by the authorities.  
__________