WT/REG349/M/1  
 
2 December 2015  
(15-6349)  Page: 1/3  
Committee on Regional Trade Agreements 
Seventy-ninth Session   
 
FREE TRADE AGREEMENT BETWEEN MEXICO AND CENTRAL AMERICA – COSTA RICA, 
EL SALVADOR, GUATEMALA, HONDURAS, AND NICARAGUA 
GOODS AND SERVICES 
NOTE ON THE MEETING OF 16 NOVEMBER 2015 
Chairman: Ambassador Amr RAMADAN (Egypt) 
1.1.  The 79th Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/RTA/4 dated 5 October 2015. 
1.2.  Under Agenda Item B.II of the session, the CRTA considered the Agreement between 
Mexico and Central America – Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua, 
(hereinafter "the Agreement").  
1.3.  The Chairman said that the Agreement had entered into force on 1 September 2012 for 
Mexico and El Salvador, and Mexico and Nicaragua, 1 January 2013 for Mexico and Honduras, 
1 July 2013 for Mexico and Costa Rica, and 1 September 2013 for Mexico and Guatemala. It had been notified to the WTO by the Parties on 20 January 2014 under Article XXIV:7(a) of the GATT 
1994 and the Understanding on the Interpretation  of Article XXIV of GATT 1994 as an Agreement 
establishing a free trade area (document WT/REG349/N/1/Rev.1) and under GATS Article V:7(a) as an Agreement providing for the liberalization of trade in services within the meaning of Article V of the GATS (document S/C/N/717/Rev.1). The text of the Agreement was available, together with 
its Annexes, on the Parties' official websites. Th e Factual Presentation on the goods and services 
aspects (document WT/REG349/1 dated 7 September 2015) had been prepared by the Secretariat 
on its own responsibility in full consultation with the Parties, in accordance with paragraph 7(b) of 
the Transparency Mechanism for Regional Trade Agreements (document WT/L/671). In addition, 
written questions and replies on this Agreemen t had been distributed in document WT/REG349/2 
dated 10 November 2015. He proposed to organize the consideration of the Agreement by first 
asking the Parties and then other Members to give any general comments and then turn to the 
specifics of the Agreement. 
1.4.  The Representative of Mexico thanked the WTO Secretariat for preparing the Factual 
Presentation, as well as the delegations of Costa Rica, El Salvador, Guatemala, Honduras and 
Nicaragua for their much appreciated willingness to work with Mexico in the review and for the 
pleasant hours they had spent together. It had been truly a pleasure to work together. 
1.5.  The objective of the Agreement was to enha nce competitiveness in the region, to boost and 
facilitate trade through the harmonization of rules, to reduce transaction costs for economic 
operators using different trade instruments, and to approve the specific rules set forth in the existing trade agreements; which meant having a single body of legislation, a single certificate of 
origin, and a single focal point for dialogue. This represented an enormous step forward. 98% of 
the specific rules in the different agreements ha d been approved under the Agreement. Economic 
operators now had a set of harmonized rules that were the same for all those involved, so that transaction costs for traders had been reduced an d trade between them facilitated. As a result, 
trade flows between the participating countries co uld be strengthened and the competitiveness of 
the region enhanced, making it attractive for investment. The Agreement also aimed to help Mexico and Central America to strengthen their production chains, achieve economies of scale and 
become more efficient and productive. WT/REG349/M/1 
 
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  1.6.  The Agreement included disciplines on tariffs  and market access, rules of origin and customs 
procedures, trade facilitation, safeguards, sanitary and phytosanitary measures, technical barriers to trade, cross-border trade in services, financial services, temporary entry of business persons, telecommunications services, e-commerce, government procurement, intellectual property, 
investment, administration of the Agreement and dispute settlement.  
1.7.  As regards tariffs, the Agreement incorporated the commitments from the original 
agreements between Mexico and the Central Amer ican countries which, by 2012, had left most 
trade between Mexico and its five partners duty free. The Parties had also negotiated market 
access commitments for certain products of mutual interest that had been originally excluded from the previous agreements. These included: automob iles, certain dairy products (evaporated milk, 
condensed milk and cheese), poultry sausages, marm alades and fruit pastes, cigars and cigarillos, 
and sugar. 
1.8.  With respect to technical barriers to trade and sanitary and phytosanitary measures, a 
flexible mechanism had been created to address the trade concerns of both parties. This would 
help to ensure that standards did not become unjustified barriers to trade. In addition to 
strengthening existing commitments in the intelle ctual property area, the Agreement recognized 
the designations of origin and geographical indications protected in each country, including, in the 
case of Mexico, Tequila, Mezcal, Olinala and Talavera. As regards services, the Agreement included 
a chapter on telecommunications that laid down rules for telecommunications service operators in all of the countries. 
1.9.  To conclude, he pointed out that the openin g up of trade had been highly beneficial to the 
countries of the region in terms of commerce,  investment and employment, and had brought 
certainty to the business environment. The reduction in transaction costs for entrepreneurs in the region thanks to the single set of rules for expo rts of their products on preferential terms would 
help to boost intra-regional trade. In other words, there was considerable potential for growth of 
trade between the Parties. 
1.10.  Finally, he thanked the delegations of  Canada and Thailand for their questions. 
1.11.  The representative of Costa Rica on behalf of Central America, appreciated the opportunity 
to present the Agreement, thanked colleagues from Mexico for the joint preparatory work and the 
Secretariat for its work on the Factual Presentation. 
1.12.  The Agreement was an important tool for consolidating economic integration by 
strengthening and deepening existing trade relati ons, developing an environment conducive to 
investment, stimulating trade activities, preventing trade distortions, promoting the competitiveness of enterprises, enhancing opportuni ties and facilitating trade. The negotiation of 
the Agreement had begun in May 2010 and had ended with its signature in November 2011. It had 
entered into force for the Central American countries between September 2012 and September 2013. The regulatory framework had been developed on the basis of the fundamental principles of 
the multilateral trading system. The Agreement was made up of 21 chapters containing regulatory 
provisions on national treatment and market access, rules of origin, customs procedures, trade facilitation, trade defence, sanitary and phytosanitary measures, technical barriers to trade, government procurement, investment, cross border trade in services, telecommunications 
services, temporary entry of business persons,  e-commerce, intellectual property, dispute 
settlement and institutional matters. 
1.13.  Among the most significant results of the Agreement were the creation of an enlarged 
economic area between the countries of Central America and Mexico, with common rules to 
facilitate trade; the maintenance of tariff preferences established in prior agreements between Mexico and Central American countries, while improving treatment of certain products that were 
excluded; the promotion of productive and economic integration through cumulation of origin, 
thereby facilitating the use of materials origin ating in the parties to the Agreement for the 
production of final goods; the adaptation of rules of origin to the realities of production in the region; trade facilitation through mechanisms to expedite, simplify and automate customs 
procedures; and modernization of the legal provisions governing certain areas, such as 
investment, services and intellectual property. WT/REG349/M/1 
 
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  1.14.  According to data provided by the Secretariat for Central American Economic Integration 
(SIECA), from 2004 to 2014, trade between Centra l America and Mexico had increased at an 
average annual rate of 9.5%. In 2004, trade amounted to US$2.226 billion while in 2014 it had reached US$5.513 billion. During the same period, exports from Mexico had grown steadily at an 
average annual rate of 6.5%, from US$428 million to US$801 million. Meanwhile, imports had 
risen at an average annual rate of 10.1%, from US$1.797 billion to US$4.712 billion. According to data provided by Trade Map, the main products exported to Mexico in 2014 included integrated 
circuits; wiring sets; crude palm oil; frozen shrimps and prawns; and singlets and other vests, 
knitted or crocheted, of cotton. The main prod ucts exported from Mexico were monitors and 
projectors; medicaments; tampons, napkins fo r babies and similar products; and paper and 
paperboard. 
1.15.  The Agreement had generated benefits both for the Central American region and for Mexico 
by stimulating trade expansion and diversification, promoting conditions of free competition, facilitating cross border movements of goods and services, and increasing investment 
opportunities. The Central American governments were firmly committed to the multilateral 
trading system. The Agreement, which was based on WTO disciplines, promoted economic growth 
and efficiency in the parties concerned, and complemented multilateral trade liberalization. 
1.16.  Costa Rica concluded by thanking delegations that had submitted questions prior to the 
meeting and reiterating it was at the Committ ee's disposal to answer any questions Members 
might have in relation to the Agreement. 
1.17.  The representative of Canada thanked the Parties for their responses to Canada's questions 
and had no follow-up questions. 
1.18.  The representative of Thailand thanked the Parties for their comprehensive presentations 
and their responses to Thailand's written questions on import duties and charges and quantitative 
restrictions, tariff rate quotas, horizontal commitments and dispute settlement, which were still 
being reviewed. Thailand reserved its right to su bmit any further questions in writing and thanked 
the Secretariat for its hard work.  
1.19.  The representative of the United States  appreciated the very th orough presentations, 
thanked the Parties for their hard work and ac knowledged the Secretariat's work in pulling 
together the factual presentation. The U.S. was impressed by the strong goods coverage among the Parties and the significant improvements in the services sector. He applauded the regional 
grouping for the steps they had taken. However, he drew attention to Table 5.1 and was 
disappointed to see that Mexico had 12 non-notified agreements, Costa Rica had three, El Salvador had two, Guatemala had five and Honduras and Ni caragua had both two. He urged all delegations 
to address this issue and fulfil their obligations under the TM and notify these agreements as soon 
as possible. 
1.20.  The representative of Mexico acknowledged that Mexico had a large number of agreements 
which had not been notified. Mexico was prepared to notify them immediately but was currently 
consulting with its partners to notify them jointly. They would proceed as soon as there was agreement with those partners.  
1.21.  The Chairman said that the consideration of the Goods and Services Aspects of the Free 
Trade Agreement between Mexico and Central America – Costa Rica, El Salvador, Guatemala, 
Honduras and Nicaragua, had allowed the Committ ee to clarify a number of questions and the oral 
discussion of the RTA could be concluded in acco rdance with paragraph 11 of the Transparency 
Mechanism. If any delegations wished to ask follow up questions they were invited to forward 
submissions in writing to the Secretariat by 23 November 2015 and Parties were asked to submit 
replies in writing by no later than 7 December 2015. In accordance with paragraph 13 of the 
Transparency Mechanism all written submissions, as well as minutes of the meeting would be 
circulated promptly, in all WTO official languages, and would be made available on the WTO website.  
1.22.  The Committee took note of the comments made. 
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