WT/COMTD/RTA4/M/1  
 
27 July  2021 
(21-5843) Page: 1/2 
Committee on Trade and Development  
Fourteenth Dedicated Session on Regional Trade  
Agreements    
 
 
PARTIAL SCOPE AGREEMENT BETWEEN MEXICO AND PARAGUAY  (GOODS)  
NOTE ON THE MEETING OF 2 8 JUNE 2021 
Chairman: H.E. Dr . Muhammad Mujtaba Piracha (Pakistan)  
1.  The 1 4th Dedicated Session on Regional Trade Agreements (RTAs) of the Committee on Trade  and 
Development (CTD) was convened in document WTO/AIR/COMTD/RTA/9/Rev.1 of 18 June 2021.  
Under item  D (I) of the agenda, the Committee considered the Partial Scope Agreement between 
Mexico and Paraguay  (Goods) (WT/COMTD/RTA4/N/1, WT/COMTD/RTA4/1, WT/COMTD/RTA4/2 ). 
This agreement was concluded in the context of the Latin American Integration Association (LAIA) 
as "Partial Scope Historical Heritage Renegotiation Agreement No. 38 " (AAP.R 38) . The present 
document contains the minutes relating to the consideration of this agreement.1  
2.  The Chairman  said that t he Partial Scope Agreement between Mexico and Paraguay was notified 
under paragraph 4(a) of the Enabling Clause  by Mexico  on 23 July 2019 in document 
WT/COMTD/RTA4/N/1. The factual presentation on th e agreement – document WT/COMTD/RTA4/1 
dated 12 March 2021 – had been prepared by the Secretariat on its own responsibility, and in full 
consultation with the parties. Written questions from Brazil, as well as the replies from the parties, 
were circulated in document WT/COMTD/RTA4/2.  
3.  The representative of Mexico  expressed appreciation to the Secretariat for having prepared the 
factual presentation  on the agreement , and to the delegation of Paraguay for the coordination 
between the parties and the joint efforts. Historically, relations with Latin America and the Car ibbean 
had been fundamental to the development of Mexico's  trade policy strategy, which s ought  to 
increasingly strengthen trade and investment ties in order to foster the development of the region.  
The objectives of the agreement included promoting and diversifying trade between the 
two countries through the reduction or elimination of levies and other restrictions applicable to the 
importation of products. Since its conclusion and until the adoption of a Transpositio n Protocol in 
1993, three additional protocols were signed  – in 1983, 1986 and 1988. The 1993 Transposition 
Protocol aligned the concessions with the LAIA tariff nomenclature , while also consolidating the text 
and annexes of the liberalization programme. T he agreement foresaw the expiration of the 
preferences on 30  June 1994, and additional protocols were therefore signed annually to extend the 
validity of the preferences. Finally, the Tenth Additional Protocol  of December 2001  extended the 
preferences from  1 January 2002 until the entry into force of a preferential agreement between 
Mexico and the Southern Common Market (MERCOSUR). As of December 2020, no such agreement 
had been signed.  Preferential treatment under the Mexico -Paraguay agreement was granted through 
margins of preference (MOPs) on the most-favoured -nation ( MFN) duty. The originating products 
being granted preferential treatment and the corresponding MOPs were specified in Annexes I and 
II to the agreement . The MOPs granted under the agreement were between 6% and 100%. The 
figures for 2020 show ed that the value of Mexico's exports to Paraguay amounted to USD 75 million , 
and imports to USD 73 million. Despite the pandemic, the value of trade remained close to that of 
the previous year , with the positive performance of the automotive sector  – and specifically motor 
vehicles  – particularly standing out. The main imports from Paraguay included rice, oil seeds and 
oleaginous fruits. Thanks to th e agreement, economic operators in both countrie s had a 
comprehensive trade instrument in force that provide d them with certainty in their trade strategies. 
In the current context, the agreement continue d to be the most important bilateral instrument for 
 
1 The general minutes of the CTD's 1 4th Dedicated Session on RTAs are contained in document 
WT/COMTD/RTA/M/1 4. WT/COMTD/RTA4/M/1  
 
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  regulating trade between the two countries. Th e agreement also provide d key mechanisms for 
fostering improvement s and updat es, with a view to extending the benefits of the bilateral trading 
relationship. The parties were  presently  negotiating a broader legal framework for trade, aimed at 
modernizing the agreement and including more items in order to boost trade opportunities. In 
closing, he expressed willingness  to expand on any particular points of interest.  
4.  The representative of Paraguay  thanked the Secretariat for having prepared the 
factual  presentation on the agreement, a s well as the delegation of Mexico  for the coordination 
between the parties and the joint efforts. She also thanked  the delegation of Brazil for its interest 
and its written questions, to which responses had been provided . She went on to say that the 
agreement laid down the basis for trade relations between Mexico and Paraguay. With respect to 
bilateral trade, it was to be noted that there was a potential gap to be explored in order to improve 
the market integration of a numb er of products. For example, her delegation believed that the 
products with the greatest export potential from Paraguay to Mexico were currently soya beans , 
solid residue from soya bean oil , and ignition wiring sets for means of transport. Solid residue fr om 
soya bean oil show ed the highest gap between potential and current exports, which suggest ed the 
possibility of additional exports worth USD 7.1 million. Paraguay therefore recognize d the importance 
of continuing to promote trade with Mexico, in order to  maximize the existing market potential for 
the benefit of both countries, and particularly in the context of post -pandemic economic recovery. 
On this point, she expressed her delegation's appreciation to the Government of Mexico for its 
solidarity at this  critical time , and for having donat ed 150,000 doses of vaccines through the 
Community of Latin American and Caribbean States (CELAC). Paraguay  joined Mexico in all 
multilateral forums to combat the pandemic . Her delegation also  underst ood that trade could drive 
economic recovery in the Latin American region in the post -pandemic era, especially by including 
products enjoying preferences for the benefit of micro, small and medium -sized enterprises ( MSMEs ) 
and women in trade. In this connecti on, Paraguay wishe d to reiterate its interest to explor e the 
possibility of moving in the near future towards an Economic Complementarity Agreement with 
Mexico within the LAIA framework. She also indicated willingness to expand on any particular points 
of interest . 
5.  The representative of the United States  thanked Mexico and Paraguay  for participat ing in the 
transparency exercise . 
6.  The representative of the European Union  expressed her delegation 's appreciation to the parties 
for the transparency provided.  
7.  The Chairman  said that oral discussion of the Partial Scope Agreement between Mexico and 
Paraguay could be concluded in accordance with paragraph 11 of the Transparency Mechanism for 
RTAs (RTA TM). Follow -up questions by Members would need to be submitted in writing to the 
Secretariat within one week, by 5 July 2021. The parties would then be given two weeks to submit 
written replies, by no later than 19 July 2021. In accordance with paragraph 13 of the RTA TM, all 
written submissions as well as t he minutes of the present meeting would be circulated promptly in 
all WTO official languages, and would be made available on the WTO website.  
8.  The Committee took note  of all interventions .  
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