WT/REG345/1  
14 July 2014  
(14-4036)  Page: 1/39  
Committee on Regional Trade Agreements   
 
 FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN MEXICO AND URUGUAY 
(GOODS) 
Report by the Secretariat 
This report, prepared for the considerat ion of the Free Trade Agreement between 
Mexico and Uruguay has been drawn up by the WTO Secretariat on its own 
responsibility and in full consultation with the Parties. The report has been drawn up in accordance with the rules and procedures contained in the Decision for a 
Transparency Mechanism for Regional Trade Agreements (WT/L/671). 
Any technical questions arising from this report may be addressed to 
Ana Cristina Molina (tel: +41 22 739 6060). Any statistical questions arising from this report may be addressed to Ms. Alejandra Barajas (tel: +41 22 739 6425). 
 
 
  
 
  
 
  
 
 
 
  
 
  
 
  
 
  
 
Note: This report was drafted in English. WT/REG345/1 
 
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  TABLE OF CONTENTS 
Page 
 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Merchand ise trade ..................................................................................................... 4  
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT ...................................................... 7  
2.1   Background  Information ............................................................................................. 7  
3   PROVISIONS ON TRADE IN GOODS ............................................................................. 9  
3.1   Import duties and charges, and quantitative restrictions ................................................. 9  
3.1.1   General provisions .................................................................................................. 9  
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 10 
3.1.3   Liberalization by product ......................................................................................... 12 
3.1.3.1   Mexico ............................................................................................................... 12 
3.1.3.2   Uruguay ............................................................................................................ 13 
3.1.4   Tariff-rate quotas ................................................................................................... 15 
3.2   Rules of origin .......................................................................................................... 17 
3.2.1   Requirements for th e determination of origin ............................................................. 17 
3.2.2   Cumulation ........................................................................................................... 18 
3.2.3   De minimis  rule ..................................................................................................... 18 
3.2.4   Other factors affecting the originating status of a good ................................................ 19 
3.2.5   Administration of  the rules of origin .......................................................................... 19 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 20 
3.4   Regulatory provisions on trade in goods ....................................................................... 20 
3.4.1   Standards ............................................................................................................. 20 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 20 
3.4.1.2   Technical barriers to trade .................................................................................... 21 
3.4.2   Safeguard mechanisms ........................................................................................... 22 
3.4.2.1   Global safeguards ............................................................................................... 22 
3.4.2.2   Bilateral safeguards ............................................................................................. 23 
3.4.2.3   Other provisions governing bo th global and bila teral safeguards ................................ 23 
3.4.2.4   Safeguards related to the balance of payments ....................................................... 24 
3.4.3   Anti-dumping and countervailing measures ............................................................... 24 
3.4.4   Subsidie s and State aid .......................................................................................... 25 
3.4.5   Customs-re lated procedures .................................................................................... 25 
3.5   Sector-specific provis ions on trad e in goods ................................................................. 25 
3.6   Further negotiations .................................................................................................. 25 
4   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 25  
4.1   Tran sparency ........................................................................................................... 25 
4.2   Current payments and capital movements .................................................................... 26 
4.3   Exceptions ............................................................................................................... 26 
4.4   Accession and Withdrawal .......................................................................................... 26 WT/REG345/1 
 
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  4.5   Institutio nal framework ............................................................................................. 26 
4.6   Disput e settlement ................................................................................................... 27 
4.7   Relationship with other agr eements concluded by the Parties .......................................... 28 
4.8   Government  procurement .......................................................................................... 31 
4.9   Intellectual property rights ......................................................................................... 31 
4.9.1   Main Principles ...................................................................................................... 31 
4.9.2   Copyrights ............................................................................................................  31 
4.9.3   Trademarks and well-know n mark s .......................................................................... 32 
4.9.4   Geographic al indications ......................................................................................... 32 
4.9.5   Protection of undisclosed information ........................................................................ 32 
4.9.6   Other IP R provisions .............................................................................................. 32 
4.10   Competition policy, Monopolies and State Companies ................................................... 33 
ANNEX 1 ....................................................................................................................... . 34 
ANNEX 2 ....................................................................................................................... . 36 
 WT/REG345/1 
 
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Key Facts 
 
Parties to the Agreement:  Mexico and Uruguay  
Date of Signature:        15 November 2003 
Date of Entry into Force:    15 July 2004 
Date of Notification:      28 June 2013 (goods and services)  
End of Implementation:    2013 (goods) 
 
  
1  TRADE ENVIRONMENT 
1.1.  The Free Trade Agreement between Mexico an d Uruguay (hereafter "the Agreement") covers 
goods and services. It is the 13
th regional trade agreement (RTA) notified by Mexico to the WTO, 
and the 5th by Uruguay. As of May 2014, the provisions on trade in services were not fully 
implemented as the negotiations regarding the Parties' lists of reservations were still ongoing. 
Thus, this Factual Presentation focuses on the prov isions related to trade in goods, only. Once the 
negotiations on trade in services are completed, th e related Factual Presentation will be prepared.  
1.2.  Mexico and Uruguay differ substantially in the size of their economies and their participation 
in world trade. In 2003, when the Agreement was signed, Mexico's GDP amounted to 
US$722 billion, which was about 60 times bigger than that of Uruguay (US$12 billion). Nine years later, the gap was still significant but less pr onounced than in 2003. In 2012, the ratio was 
24 times in favour of Mexico (US$1,178 billion compared to US$50 billion).
1 In terms of trade, in 
the same year Mexico was the world's 16th and 14th largest exporter and importer with exports of 
about US$371 billion and imports of US$380 billion. Uruguay ranked 95 (US$9 billion) in terms of exports and 90 (US$12 billion) for imports.  
1.1  Merchandise trade 
1.3.  Charts 1.1A and 1.1B show global and bila teral trends in merchandise trade for the Parties 
for the period 2000-2012. Trade by the Parties increased steadily since 2003 and surged in 2008 
for Uruguay. For both Parties, trade plunged in 2009 as a result of the global crisis but recovered 
in the following years. During this period Mexico maintained a trade deficit with the world and with Uruguay, except in 2004 and 2012 when it  reported a trade surplus with Uruguay of 
US$206 million and US$5 million, respectively. Acco rding to the Parties, this trade surplus has 
been rising since 2012 as result of an increase in exports to Uruguay and the stagnation of its imports. 
1.4.  Trade between the Parties is modest and accounts for a small share in each Party's trade. In 
2012, Uruguay was Mexico's 32
nd and 33rd largest export and import partner with 0.08% of its 
total exports and imports. In contrast, Mexico was Uruguay's 11th and 10th largest export and 
import partner, accounting for 1.7% and 2.5% of its total exports and imports. 
                                               
1 The World Bank indicators. WT/REG345/1 
 
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  Chart 1.1 Mexico and Uruguay: bilatera l and total merchandise trade, 2000-2012 
0.00.10.20.30.40.50.6
070140210280350420
2000 2002 2004 2006 2008 2010 2012A. Mexico 2000-2012
(US$ Billions)
Imports from Uruguay (Right Axis)
Exports to Uruguay (Right Axis)
Total Imports
Total Exports
0.00.10.20.30.40.50.6
024681012
2000 2002 2004 2006 2008 2010 2012B. Uruguay 2000-2012 
(US$ Billions)
Imports from Mexico (Right Axis)
Exports to Mexico (Right Axis)
Total Imports
Total Exports
 
 
Source: UNSD Comtrade. 
1.5.  Chart 1.2A and 1.2B exhibit the Parties'  trade structure during the years prior to the 
Agreement's entry into force (2001-2003) and the latest years for which data are available 
(2010-2012). The trade structure between the Part ies has evolved over the surveyed period, but 
maintained some complementarities. During 2001-2003, half of Mexico's imports from Uruguay involved only two categories of goods: animal  products (39%) and textiles (22%). They were 
followed by hides and skins (11%), prepared f ood (8%) and chemicals (4%). Of these products, 
only the share of prepared food (14%) and in particular of chemicals (29%) expanded during 
2010-2012, while the share of textiles (4%) declined significantly. In fact, during this period 
chemicals (29%) were the main import from Uruguay, followed by animal products (23%), 
prepared foods (14%), hides and skins (9%) and wood articles (8%). Of these products, animal 
products (1
st), wood articles (3rd), chemicals (4th) ranked among Uruguay's top 5 exports.  
1.6.  Uruguay imports from Mexico are also highly concentrated in a few product categories. 
During 2001-2003 and 2010-2012, three categories (although not the same ones), accounted for at least 70% of its bilateral imports. In 2001-2003, these categories were machinery (29%), chemicals (27%) and plastics and rubbers (18%). Of  these products, only plastics and rubbers did 
not rank among Uruguay's top three imports from Mexico in 2010-2012. During that period, the 
main imported products were vehicles (38%), machinery (31%) and chemicals (12%), which corresponded to a large extent to Mexico's main global exports (i.e. vehicles and machinery) 
during both periods 2001-2003 and 2010-2012
2, thus showing that trade complementarities 
between the Parties have deepened.  
 
                                               
2 During those years, vehicles and machinery accounte d for more than half of Mexico's total exports. WT/REG345/1 
 
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  Chart 1.2A Mexico and Uruguay: Product Composition of merchandise trade, annual 
average (2001-2003) 
Total: US$ 196 million Total: US$ 6.6 billion
Total: US$ 6.9 billion Total: US$ 2.3 billionTotal:  US$ 1.1 billion
Total:  US$ 21.7 million39
2211843329Mexico's imports from Uruguay (%) 
40
11 887533339Mexico's Global Imports (%)
29
16
13125553338Uruguay's Global Exports (%)
29
27181233224Uruguay's imports from Mexico (%)
17
17
16876554439Uruguay's Global Imports(%)
41
181064433226Mexico's Global Exports(%)
Animal 
products
Vegetables
Fats and 
OilsMinerals
ChemicalsPlastics, 
rubber
Articles of wood
Wood pulp Base metalsMachinery
OpticalOtherMiscellaneousPrepared 
foods
Vehicles TextilesHides and skins
 
 
Source: UNSD Comtrade. WT/REG345/1 
 
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  Chart 1.2B Mexico and Uruguay: Product Composition of merchandise trade, annual 
average (2010-2012)  
32
27655433310Uruguay's Global Exports (%)
29
23 14986436Mexico's imports from Uruguay (%) 
38
99887333210Mexico's Global Imports (%)
Total: US$ 266 million Total: US$ 341 billion
Total: US$ 10 billion Total: US$ 340 billionTotal:  US$ 8 billion
Total:  US$ 236 million
Animal 
products
Vegetables
Prepared 
foodsChemicals
Plastics, 
rubberHides, skins
Articles of wood
Wood pulpPrecious 
stones
Base metalsVehiclesMiscellaneous
OpticalMinerals Machinery Textiles
Other38
311265323Uruguay's imports from Mexico(%)
23
18
13117644329Uruguay's Global Imports(%)
35
1916533333326Mexico's Global Exports(%)
 
 
Source: UNSD Comtrade. 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 2.1.  The Agreement, which covers goods and services, was signed by the Parties on 
15 November 2003 and notified to the WTO on 28 June 2013 after its entry into force 
(15 July 2004). The Agreement was notified under Article XXIV:7(a) of GATT 1994 and Article V:7(a) of the GATS (WT/REG345/N/1 and S/C/N/701). The section on trade in goods of the 
Agreement entered into force in 2004. As of May 2014, the provisions on trade in services were 
not fully operational, as the Parties' lists of  reservations had still to be finalized.  
2.2.  The Agreement does not apply to automoti ve products or petroleum (Articles 1.6-1.7). 
According to the Agreement, trade between the Parties in automotive products is governed 
exclusively by the partial scope agreement between Mexico and Mercosur, known as the Economic 
Complementation Agreement No. 55  (ACE 55), and its protocols.
3 
                                               
3 In the case of Mexico, there are 166 lines which are covered by both the ACE 55 and the Agreement. 
Mexico indicated that the preferences that apply in these cases depend on the use of the good. If a good is 
intended for the automotive industry the preference s under the ACE 55 apply, otherwise those under the 
Agreement apply. WT/REG345/1 
 
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  2.3.  The text of the Agreement, along with its schedules and annexes, is available on the website 
of the Parties' competent authorities.4 The Agreement contains 20 chapters, of which several 
include annexes (Box 2.1).  
Box 2.1 Structure of the Agreement 
 Preamble 
Chapter 1 Initial Provisions  
Chapter 2 General Definitions 
Chapter 3 National Treatment and Market Access for Goods 
Chapter 4 Rules of Origin 
Chapter 5 Customs Procedures related to the origin of goods 
Chapter 6 Safeguard measures  
Chapter 7 Anticompetitive practices in international trade  
Chapter 8 Sanitary and Phytosanitary Measures 
Chapter 9 Standards, Technical Regulations and Conformity Assessment Procedures 
Chapter 10 Cross-Border Trade in Services 
Chapter 11 Telecommunications 
Chapter 12  Temporary Entry of Business Persons 
Chapter 13 Investment 
Chapter 14 Competition, Monopolies and State Companies 
Chapter 15 Intellectual Property  
Chapter 16 Transparency  
Chapter 17 Administration of the Agreement 
Chapter 18 Dispute Settlement 
Chapter 19 Exceptions 
Chapter 20 Final Provisions 
 
Source: The Agreement. 
2.4.  Since its signature, the Agreement ha s been amended twice, in April 2004 and in 
October 2012. In 2004, the Parties adopted a set of modifications which entered into force in 
2007. These modifications included the elimination of some charges on imports from Mexico (see 
Section 3.1.1), as well as the final list of business people to whom the Parties will grant authorization for temporary entry into their territories (Appendix 12.4(D)(1)).
5 In 2012, the Parties 
adopted a Protocol, which entered into force in 2013.  The Protocol modifies the rules of origin for a 
few animal products and eliminates the permit requirement for two lines relating to dairy products.
6 It also adds a new article (Article 4.19) to the Agreement, which provides for the 
application of extended cumulation and establishe s quotas for milk and cream (tariff line 0402).  
                                               
4 The text of the agreement can be found in: 
http://www.siicex.gob.mx/portalSiicex/SICETECA/Tratados/Tratados.htm  (for Mexico); and 
http://www.mef.gub.uy/apc_mexico.php  (for Uruguay).  
5 In the case of Mexico, the modifications were published in the official journal on 26 October 2007 in 
the "Decreto Promulgatorio de las Modificaciones al Tratado de Libre Comercio entre los Estados Unidos 
Mexicanos y la República Oriental del Uruguay, firmado en Santa Cruz de la Sierra, Bolivia, el quince de 
noviembre de dos mil tres, adoptadas el dieciséis de  abril de dos mil cuatro." 
6 For Mexico, the "Decreto Promulgatorio del Protocol o Modificatorio al Tratado de Libre Comercio entre 
los Estados Unidos Mexicanos y la República Oriental del Uruguay, firmado en la Ciudad de Santa Cruz de la WT/REG345/1 
 
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  3  PROVISIONS ON TRADE IN GOODS 
3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 3.1.  Trade in goods between the Parties is govern ed by Chapter 3, except for automotive products 
and petroleum, which are excluded from the Ag reement. The Chapter contains provisions on 
national treatment, tariff elimination, customs valuation, special regimes
7, export and import 
restrictions, performance requirements, export su bsidies, export taxes and domestic support. The 
Agreement also provides for the creation of a Co mmittee on Trade in Goods and for consultations 
in case a Party considers a measure by the other Party is affecting the implementation of Chapter 3 As of May 2014, the Committee has met four times (Articles 3.15-3.16). The Agreement follows the WTO definition  for agricultural products (Article 3.1).  
3.2.  The Parties agree to grant national treatm ent to each others' goods in accordance with 
Article III of GATT 1994 (Article 3.2). They also commit to eliminate all customs duties on originating goods upon the Agreement's entry into force, except as provided in Annexes 3.3(3), 
3.3(4) and the ACE 55 regarding the automotive sector (Article 3.3).
8 In Annexes 3.3(3) and 
3.3(4), the Parties list the products for which tariffs will be reduced or eliminated over a transition period (Annex 3.3(3)), as well as those that are subject to quotas or excluded (Annex 3.3(4)). 
Products liberalized over a transition period are footwear for both Parties and bovine meat for 
Mexico.
9 Duties for bovine meat will be reduced over three years while those for footwear will be 
eliminated over ten years. Moreover the Parties agreed an additional protocol to the ACE 55 to 
liberalize automotive parts. This Protocol10 was signed on 24 June 2004 and entered into force on 
the same day as the Agreement.  Currently, the ACE 55 covers 508 tariff lines (8-digit level)11 for 
Mexico and 323 tariff lines (10-digit level) for Uruguay12 (Table A1.1).13 
3.3.  The Parties cannot increase an existing tariff or introduce a new one, unless otherwise 
specified. According to the Agreement, they can:  (a) increase a customs duty up to the level 
established in their tariff schedule following an un ilateral reduction; (b) maintain or increase a 
customs duty when authorized by the WTO Dispute Settlement Body (Article 3.3); and (c) adopt or 
maintain duties in accordance with their GATT commitments on products listed in Annex 3.3(4) as 
long as the corresponding preferences continue to apply. They also commit to hold consultations, 
upon request, to accelerate the liberalization process for products subject to a transition period (Annex 3.3(3)) or improve the market access conditions for goods initially excluded from 
liberalization (Article 3.3). The Parties indicated that some consultations have taken place in this 
regard.  
                                                                                                                                               
Sierra, Bolivia, el quince de noviembre de dos mil tres, suscrito simultáneamente en la Ciudad de México y en 
Montevideo el primero de octubre de dos mil doce" was published in its official journal on 27 February 2013. 
For Uruguay, Law 19049 approving the "Protocolo modificatorio al Tratado de Libre Comercio con los Estados Unidos Mexicanos" was published in its official journal on 14 January 2013. 
7 This refers to the access conditions for: goods impo rted on a temporary basis, re-entry after repair or 
alteration and for commercial samples of negligible value. 
8 The ACE 55 entered into force on 1 January 2003 for Mexico and Uruguay. 
9 For Mexico, bovine meat and footwe ar account respectively for 6 and 37  lines at the 8-digit level. For 
Uruguay, footwear accounts for 66 lines at the 10-digit level. 
10 "Primer Protocolo Adicional al Apéndice IV sobre el  comercio en el Sector Automotor entre el Uruguay 
y México"  
11 Of the 508 lines covered by the ACE 55, 331 are duty-free only under the ACE 55; 4 lines are duty 
free on an MFN basis, and six are duti able but benefit from a lower tariff ra te than in the Agreement. Finally, 
there are 166 lines, which are to be covered by the Agreement or the ACE 55 depending on whether or not the good is intended to the automotive industry.  
12 Of the 323 lines covered by the ACE 55, 229 are duty-free only under the ACE 55, 34 lines are duty 
free on an MFN basis, and some of the sub prod ucts of the remaining 60 lines are duty-free. 
13 Since 2004, two more protocols to the ACE 55 have been signed between Mexico and Uruguay, one in 
2010 and another in 2011. The "Segundo Protocolo Adicional al Apéndice IV sobre el comercio en el Sector 
Automotor entre el Uruguay y México" was signed on 21 December 2010 and remained in force between 
1st January and 30 June 2011. The "Tercer Protocolo Adicional al Apéndice IV sobre el comercio en el Sector 
Automotor entre el Uruguay y México" was signed on 22 February 2011 and entered into force on 1
st April 2011.  WT/REG345/1 
 
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  3.4.  Regulations on customs valuation will follow the WTO Customs Valuation Agreement, which is 
incorporated into the Agreement (Article 3.4).  
3.5.  The Parties allow duty-free entry for: (a) goods imported on a temporary basis14 as long as 
certain conditions are fulfilled (Article 3.5); (b) commercial samples of negligible value and printed 
advertising materials (Article 3.6); and (c) goods that re-enter a Party after repair or alteration 
(Article 3.7). 
3.6.  They agree to eliminate any non-tariff meas ure that prohibits or restricts their bilateral 
imports, including import price requirements, except for a) measures listed in Annex 3.10, 
b) measures permitted in the enforcement of countervailing and antidumping measures (Article 3.8) or c) as provided in Article XI of the GATT 1994.
15 In Annex 3.10, Mexico lists import 
permit requirements for a number of products including meat and edible offal, milk and cream, 
sugar, petroleum, gas and vehicles. It also lists a consular fee applied to products covered by the 
Agreement. As for Uruguay, it lists internal taxes related to imports and reserves the exclusive right to import petroleum and its derivatives, as well as to import and export other fuels. The 
taxes listed by Uruguay include the consular fee and the charge on import s collected by the Bank 
of the Eastern Republic of Uruguay (BROU). In 2007, these two taxes were removed for Mexican imports in accordance with the amendments of 2004 and in 2011 the BROU was eliminated for all 
countries.
16 
3.7.  The Parties also prohibit the grant of ince ntives contingent upon performance requirements, 
namely export performance or import substitution conditions. This prohibition does not cover duty drawback, deferral or waiver programs for goods th at are re-exported or incorporated in another 
good for re-export as long as reimbursements or duty waivers do not exceed the duties that would 
have accrued if the goods were intended for the market of the importing Party (Article 3.9). 
3.8.  They commit to consult each other before adopting any measure under any 
intergovernmental agreement as described in GATT Article XX(h) (Article 3.11). 
3.1.2  Liberalization of trade and tariff lines 3.9.  For both Parties, the majority of products covered by the Agreement was liberalized in 2004, 
when the Agreement entered into force, except for footwear
17 and bovine meat18, which were 
subject to staging categories (see Section 3.1.1). Both Parties completed the liberalization process in 2013 and maintained duties on a limited number of products (about 7% and 13% of the total 
number of lines for Mexico and Uruguay, respectively). The Parties used the MFN rates applied in 
2004 as the base rate. 
3.10.  Tables 3.1-3.2 summarize tariff and trade liberalization by the Parties under the Agreement. 
Table 3.1 shows that in 2004, 5% of Mexico's  tariffs were duty free on an MFN basis, 
corresponding to 4.2% of its imports from Uruguay in 2001-2003.
19 Upon the Agreement's entry 
into force, Mexico liberalized another 87.5% of its lines which accounted for 56.8% of its imports 
from Uruguay. In 2013, after nine years of implem entation, the share of duty-free lines amounted 
to almost 93%, including 31 tariff lines that were liberalized in that year. Of the 830 lines that 
remained dutiable, 9 were subject to an specific  duty, about 44% (i.e. 363 lines) showed an add-
valorem duty between 10% and 20%, and another 41% had a rate higher than 20%. Only 15% (i.e. 123 lines) had an ad-valorem rate lower or equal to 10%.  
3.11.  Under the ACE 55, 331 of the 830 lines (excluding prohibited lines) that were not liberalized 
under the Agreement are duty free and six benefit from a lower tariff rate. As a result when the preferences granted under both the ACE 55 and th e Agreement are taken into account, the overall 
                                               
14 Goods temporally admitted are professional equipm ent, media equipment, goods imported for sports 
purposes, goods intended for displa y or demonstration, and commercial samples and advertising films. 
15 Article XI of the GATT 1994 and its relevant prov isions under the WTO are incorporated into the 
Agreement. 
16 Trade Policy Review 2012 of Uruguay (WTO Document WT/TPR/S/263). 
17 37 tariff lines for Mexico and 64 tariff lines for Uruguay. 
18 Six tariff lines for Mexico. 
19 Of the total number of Mexico's tariff lines (i.e. 11,891), 81 are not subject to ad valorem  duties: 
45 lines are subject to a compound tariff, 14 to  an specific duty and 22 lines are prohibited. WT/REG345/1 
 
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  average tariff rate goes from 1.9% to 1.4% in 2013, and the number of dutiable lines is 499 
instead of the 830 (Table A1.2). 
Table 3.1 Mexico: Tariff eliminatio n commitments under the Agreement 
Duty phase-out 
period Number of lines % of total lines in 
Mexico's tariff 
schedule Value of Mexico's 
imports from Uruguay  % of Mexico's total 
imports from Uruguay 
(2001-2003) (2001-2003) in million 
US$ 
MFN Duty Free 
(2004) 600 5.0 4.2 4.5 
2004 10,408 87.5 56.8 61.5 
2013 31 0.3 0 0.0 
Remain dutiable 852a,b 7.2 31.3 33.9 
Total 11,891 100.0 92.3 100.0 
 
a Of these lines, 22 are prohibited. Prohibited lines  are excluded from the average calculation but are 
included in the counting. 
b Of these lines, 337 are granted preferential access under the ACE 55.  Note: Preferences under the Agreement are given as a percentage of the MFN duty, this implies that as 
MFN duties change preferential duties also do. Since the total number of lines in 2004 and 2013 differs (based on the HS 2002 nomenclature), for consistency and comparability purposes all calculations are based on the 2004 MFN duties. 
  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. For the calculation of averages, specific duties are excluded and only the ad valorem  
components of alternate rates are included. 
 Based on the HS 2002 nomenclature.  Source: WTO estimates based on data prov ided by Mexico and WTO-IDB Database. 
3.12.  Table 3.2 shows that in 2004, 12.4% of Uruguay's tariff lines were duty free on an MFN 
basis, which accounted for 6.7% of its imports from Mexico during 2001-2003.20 Upon the 
Agreement's entry into force, Uruguay liberalize d an additional 74.1% of lines. No subsequent 
tariff eliminations took place until 2013, when another 64 lines were liberalized. As a result, by 
2013, after nine years of implementation, 87.1% of its tariff lines were duty free. Of the 
1,409 lines that remained dutiable, more than half (64%) were subject to a rate lower than or equal to 5%.  
Table 3.2 Uruguay: Tariff elimination commitments under the Agreement 
Duty phase-out 
period Number of 
lines % of total lines in 
Uruguay's tariff 
schedule Value of Uruguay's 
imports from Mexico % of Uruguay's total 
imports from Mexico 
(2001-2003) (2001-2003) in 
million US$ 
MFN Duty Free 
(2004) 1,351 12.4 1.8 6.7 
2004 8,086 74.1 24.2 88.3 
2013 64 0.6 0.0 0.0 
Remain dutiable 1,409a 12.9 1.4 4.9 
Total 10,910 100.0 27.4 100.0 
 
a Of these lines, 284 were granted preferential access under the ACE 55. 
 Note:  Preferences under the Agreement are given as a percentage of the MFN duty, this implies that as 
MFN duties change preferential duties also do. Since the total number of lines in 2004 and 2013 differs (based on the HS 2002 nomenclature), for consistency and comparability purposes all calculations are based on the 2004 MFN duties. 
  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. Based on the HS 2002 nomenclature 
 Source: WTO estimates based on data prov ided by Uruguay and WTO-IDB Database. 
                                               
20 All Uruguay's tariff lines (i.e. 10,910) have ad valorem  duties. WT/REG345/1 
 
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  3.13.  When the preferences granted under both  the ACE 55 and the Agreement are taken into 
account, the overall average tariff rate goes fr om 0.9% to 0.6% in 2014, and the number of 
dutiable lines is 1,180 lines instead of the 1,409 (Table A1.3).  
3.1.3  Liberalization by product 
3.1.3.1  Mexico 
3.14.  In 2013, at the end of the implementation period, duties will continue to apply on 830 lines 
(excluding prohibited lines) (Table 3.3). Sections with the highest average tariffs were mainly I-IV, 
while the sections with the largest number of dutiable lines were V-XXI. For sections I-IV, the 
average preferential tariffs ranged between 20.5% and 57.4%. Animal products (I) (57.4%) 
exhibit the highest average preferential tariffs foll owed by vegetables (II) (34.8%) and animal or 
vegetable fats and oils (III) (25.2%). For sections V-XXI, average preferential tariffs ranged 
between 12.7% and 29.4%. The sections with th e highest average tariffs are textiles (XI) 
(29.4%), plastics and rubber (VII) (24.9%) and base metals and related products (XV) (23%).  
Table 3.3 Mexico: Tariff elimination under the Agreement, by HS section HS 
Section MFN 
average 
% Total  
No. of lines MFN duty-
free (2004)  Duty-free in No. of lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2004 2013 
I 37.1 323 21 205   97a 57.4 
II 19.0 465 25 355   85a 34.8 
III 21.1 69 1 44   24 25.2 
IV 26.0 335 0 213   122 20.5 
V 11.5 210 5 205       
VI 10.8 2814 127 2668   19a,b 18.6 
VII 16.6 564 1 535   28b 24.9 
VIII 17.2 122 0 121   1a   
IX 19.2 136 3 130   3b 18.0 
X 13.0 297 18 277   2a   
XI 21.3 1,245 34 1079   132 29.4 
XII 31.8 100 0 63 31 6 17.5 
XIII 18.7 292 0 292   16b 19.6 
XIV 13.2 65 9 56       
XV 15.2 1227 10 1215   2b 23.0 
XVI 12.9 2,499 289 2141   69b 13.1 
XVII 18.6 379 3 147   229b 19.6 
XVIII 14.1 464 53 396   15b 12.7 
XIX 19.9 33 0  33       
XX 23.6 238 1 235   2b 18.0 
XXI 3.0 14 0 14       
Total  15.9 11,891 600 10,408 31 852a,b 26.8 
 
a Includes prohibited lines. Prohibited lines are ex cluded from the average calculation but are included 
in the counting. 
b Includes tariff lines that benefit fro m preferential access under the ACE 55. 
 Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. For the calculation of averages, specific duties are excluded and only the ad valorem  
components of alternate rates are included. 
 Based on the HS 2002 nomenclature.  Source: WTO estimates based on data provided by Mexico and WTO-IDB. 
3.15.  At the HS chapter level, the average pref erential tariffs ranged between 5.3% and 87.5% 
(Chart 3.1). The HS chapters with the highest average preferential tariffs were meat and edible 
meat offal (Chapter 2), cereals (Chapter 10), and products of the milling industry (Chapter 11). In 27 of the 40 chapters subject to duties the averag e preferential rate was lower than the average WT/REG345/1 
 
- 13 - 
  MFN rate. Most of them (20 chapters) involved ch apters 1 to 24. The chapters showing the largest 
difference between the average MFN rate and the pr eferential rate are: footwear (Chapter 64), 
sugar (Chapter 17) and products of the milling industry (Chapter 11).  
Chart 3.1 Mexico: Average of du tiable lines, by HS chapter 
MFN PreferentialMexico
0102030405060708090
01
0203
04
0507
08
0910
11
121315
16
1718
19
2021
22
232433
*38
*40*45
51
6162
64
*68*70*83
*84
*85*87
*90
*91*94
*96Average rate of duty (%)HS 01-24 HS 25-97
 
 
* The Chapter contains tariff lines that benefi t from preferential access under the ACE 55. 
 Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. For the calculation of averages, specific duties are excluded and only the ad valorem  
components of alternate rates are included. 
 Based on the HS 2002 nomenclature.  Source: WTO estimates based on  data provided by Mexico. 
3.1.3.2  Uruguay 
3.16.  In 2013, 1,409 lines were dutiable. The majority of them (75%) were in sections I-IV, 
except for 348 lines which fell within sections V-XXI (Table 3.4). Like in the case of Mexico, the sections with the greater number of dutiable li nes are not the ones showing the highest average 
tariffs. For sections V-XXI, average tariffs varied between 4.8% and 18%, while for sections I-VI, 
they ranged between 4.8% and 9.1%. The sect ions with the highest average tariffs were: 
miscellaneous (XX)
21, base metals (XV), and chemicals (VI), with 18%, 16% and 14%, 
respectively.  
3.17.  At the HS chapter level, 40 chapters were subject to duties (Chart 3.2), most of them 
involved chapters 1-24. The average tariff vari ed between 1.4% and 20%. In 27 chapters the 
average preferential rate was lower than the av erage MFN rate. The Chapters showing the largest 
difference between the average MFN rate and the preferential rate were: apparel and clothing 
(Chapter 62), preparations of meat, fish, crustaceans or molluscs (Chapter 16) and beverages, spirits and vinegar (Chapter 22).  
Table 3.4 Uruguay: Tariff elimination under the Agreement, by HS section HS 
Section MFN 
average 
% Total No. of 
lines MFN 
duty-free 
(2004) Duty-free in No. of 
lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2004 2013 
I 9.0 654 34 55  565 4.8 
II 7.8 393 66 105  222 4.8 
III 10.6 85  14  71 5.5 
IV 15.1 356 2 151  203 9.1 
                                               
21 The two lines in these categories refer to seats for vehicles (9401200000) and lighters (9613800000).  WT/REG345/1 
 
- 14 - 
  
HS 
Section MFN 
average 
% Total No. of 
lines MFN 
duty-free 
(2004) Duty-free in No. of 
lines 
remaining 
dutiable Avg. Final 
Tariff 
(Dutiable) 
% 2004 2013 
V 2.5 214 67 147    VI 6.9 2980 94 2885  1a 14.0 
VII 11.6 441 4 424  13a 11.7 
VIII 12.0 324  324    IX 7.8 115  113  2a 10.0 
X 11.2 257 12 245    XI 16.2 1,214  1187  27 11.2 
XII 19.3 96  32 64   XIII 10.8 252 2 226  24a 12.1 
XIV 9.6 72 8 64    XV 12.0 770 15 754  1 16.0 
XVI 5.5 1,773 793 831  149a 12.4 
XVII 8.6 227 70 45  112a 10.8 
XVIII 8.7 480 183 280  17a 13.5 
XIX 20.0 21 21    XX 18.1 177 1 174  2a 18.0 
XXI 4.0 9  9    Total 9.4 10,910 1,351 8,086 64 1,409 7.2 
 
a Includes tariff lines that benefit fro m preferential access under the ACE 55. 
 Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. For the calculation of averages, specific duties are excluded and only the ad valorem  
components of alternate rates are included. 
 Based on the HS 2002 nomenclature.  Source WTO estimates based on data prov ided by Uruguay and WTO-IDB Database. 
Chart 3.2 Uruguay: Average of dutiable lines, by HS chapter 
MFN PreferentialUruguay
02468101214161820
01
02
0304
05
07
08
0910
11
1213
14
15
16
1718
19
20
21
2223
24
*38*40
*45
61
62
*68*69
*70
*83*84
*85
*87
*90
*91*94
*96Average rate of duty (%)HS 01-24 HS 25-97
 
 
* The Chapter contains tariff lines that benefi t from preferential access under the ACE 55. 
 
Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. For the calculation of averages, specific duties are excluded and only the ad valorem  
components of alternate rates are included. 
 Based on the HS 2002 nomenclature.   Source: WTO Estimates based on data provided by Uruguay and WTO-IDB. WT/REG345/1 
 
- 15 - 
  3.1.4  Tariff-rate quotas 
3.18.  The Agreement, as well as its Protocol of 2012, provides for the application of tariff-rate 
quotas (TRQs). Under the initial text of the Agreement, only Mexico established TRQs for 33 tariff lines (8-digit level) corresponding to six types of products (Table 3.5): a) cheese and curd, 
b) honey, c) food preparations, d) flours, meals and pellets, e) stearic acid and f) woven fabrics. 
More recently, both Parties adopted TRQs for dairy products under the Protocol to the Agreement that was signed in 2012. Uruguay established TRQs for milk and cream and Mexico for powdered 
milk. These TRQs have been applied since March 2013 and cover five tariff lines in the case of 
Uruguay (10-digit level) and two in the case of Mexico (8-digit level) (Table 3.6).
22 The quotas are 
subject to annual increases, but only in the case of woven fabrics, milk, cream and powdered milk. 
As for the period of application, the TRQs will ap ply indefinitely as neither the Protocol of 2012 nor 
the Agreement specifies a transition period. 
3.19.  Under the WTO, only Mexico applies TRQs.23 They cover the following agricultural products: 
powdered milk, cheese, coffee, meat and edible offa l, animal fats, potatoes, beans, wheat, barley, 
maize, glucose, glucose syrup, maple sugar and maple syrup as well as to products with high 
sugar content. Of these products, beans, coffee, barley, and dairy products with sugar are also subject to unilateral TRQs, that is TRQs established and administered by Mexico on a unilateral 
basis. Mexico also applies unilateral TRQs to: du cks, geese, guinea-fowls, Egmont cheese, oats, 
malt, carnauba wax, sugar, preparations of cereal s, articles for infants, yarns, oilcake and other 
solid residues, new and used vehicles, and toys.
24 
3.20.  Of the products subject to TRQs at the multilateral and unilateral level, powdered milk, 
cheese (including Egmont cheese) and pastry preparations, are subject to a TRQ under the 
Agreement (Table 3.7). Except for powdered milk, the in-quota rate under the Agreement for these products is lower than the rate under the other type of TRQs. As for the quantities, those for 
cheese (including Egmont cheese) are greater under the Agreement. For the rest of the products, 
the comparison is difficult, as the quantities und er the WTO TRQs cover a larger number of product 
lines.  
Table 3.5 Products subject to TRQs follo wing the Agreement's entry into force 
Applied by 
Mexico to 
Uruguay Product 
Code MFN rates TRQs under the Agreement 
2004  2013 In 
quota 
rate Out of 
quota rate  
2013  Quantity 
Annual increases 
per year  
Cheese and curd               
  04062001  20% 20% 0% MFN rate 
6,600 tonsa no   04069001  20% 20% 0% MFN rate 
  04069002  20% 0% 0% MFN rate 
  04069003  125% 100% 0% MFN rate 
  04069004  20% 20% 0% MFN rate 
  04069005  125% 100% 0% MFN rate 
  04069006  45% 45% 0% MFN rate 
  04069099  125% 100% 0% MFN rate 
Natural honey               
  04090001  20% 20% 18%b 14%c 500 tons no 
Food 
preparations               
  21069002  15% 
+  
0.39 
USD/Kg 
of sugar 15% 
+ 
0.36 
USD/Kg 
of sugar 0% 10.8% 
+ 
0.26 
USD/Kg of 
sugar 4,200 tons no 
                                               
22 "Decreto Promulgatorio del Protocolo Modificatori o al Tratado de Libre Comercio entre los Estados 
Unidos Mexicanos y la República Oriental del Uruguay, firm ado en la Ciudad de Santa Cruz de la Sierra, Bolivia, 
el quince de noviembre de dos mil tres, suscrito simultán eamente en la Ciudad de México y en Montevideo el 
primero de octubre de dos mil doce". 
23 According to Uruguay's Trade Policy Review 2012, Uruguay does not apply TRQs at the MFN level. 
24 Trade Policy Review: Mexico, 2013. WT/REG345/1 
 
- 16 - 
  Applied by 
Mexico to 
Uruguay Product 
Code MFN rates TRQs under the Agreement 
2004  2013 In 
quota 
rate Out of 
quota rate  
2013  Quantity 
Annual increases 
per year  
Flours, meals and 
pellets               
  23011001  18% 15% 0% 10.8%c 3,000 tons no   23011099  18% 15% 0% 10.8%c 
Stearic Acid               
  38231101  13% 0% 0% 0%c 3,500 tons no 
Woven Fabrics 
(carded and combed wool)               
  51111101  18% 10% 0% 7.2%c 
2.3 million m2 
according to 
the schedule Yes. 
The quantities are 
established as follows: 
 Year 1: 1.80 million m2;
 Year 2: 1.95 million m2;
 Year 3: 2.10 million m2;
 Year 4 onwards: 
2.30 million m2   51111199  15% 10% 0% 7.2%c 
  51111901  18% 10% 0% 7.2%c 
  51111999  15% 10% 0% 7.2%c 
  51112001  18% 10% 0% 7.2%c 
  51112099  15% 10% 0% 7.2%c 
  51113001  18% 10% 0% 7.2%c 
  51113099  15% 10% 0% 7.2%c 
  51119099  15% 10% 0% 7.2%c 
  51121101  18% 10% 0% 7.2%c 
  51121199  15% 10% 0% 7.2%c 
  51121901  18% 10% 0% 7.2%c 
  51121902  18% 10% 0% 7.2%c 
  51121999  15% 10% 0% 7.2%c 
  51122001  18% 10% 0% 7.2%c 
  51122099  15% 10% 0% 7.2%c 
  51123001  18% 10% 0% 7.2%c 
  51123002  18% 10% 0% 7.2%c 
  51123099  15% 10% 0% 7.2%c 
  51129099  15% 10% 0% 7.2%c 
 
a Of this quantity, 2,200 tons are destined for goods qualifying as inputs for industrial production or 
for goods whose size is 5kgs or more. 
b Tariff rate after the application of  a margin of preference of 90%. 
c Tariff rate after the application of  a margin of preference of 28%. 
 Source: The Agreement. 
Table 3.6 Products subject to TRQs esta blished by the Protocol of 2012 to the 
Agreement 
Applied by/to Product 
code MFN rate 
in 2014 TRQs under the Agreement 
In 
quota 
rate Out of 
quota 
rate Quantity 
 Annual increases 
Uruguay/Mexico       
Milk 
and cream 0402101000 16% 0 MFN Rate 
5,000 tons Yes but subject to 
conditionsa 0402109000 28% 0 MFN Rate 
0402211000 16% 0 MFN Rate 
0402212000 16% 0 MFN Rate 
0402213000 28% 0 MFN Rate 
Mexico/ Uruguay       
Powdered milk 04021001 63% 0 MFN Rate 
5,000 tons Yes but subject to 
conditionsa 04022101 63% 0 MFN Rate 
 
a Each year the quota will increase by 500 tons, if the previous year at least 80% of the quota was 
filled. The yearly quota cannot be larger than 11,000 tons.  
 Source: Protocol 2012 to the Agreement. WT/REG345/1 
 
- 17 - 
  Table 3.7 Mexico: Products subject to TR Qs under the Agreement and under other 
regimes (MFN or unilateral) 
Product Product 
code MFN 
rate in 
2013 TRQs under the agreement Other TRQs 
In-
Quota 
Rate Out-of-
Quota 
Rate 
2013 Quantit
y per 
year In-
Quota 
Rate Out-
of-
Quota 
Rate Quantity  
per year Type of 
TRQ 
Egmont 
Cheese 04069006 45% 0% MFN Rate 6,600 
tonsa 20% MFN 
Rate 1,600 
tons Unilateral 
Cheese 
(Hard and 
semi-hard) 04069003 
04069005 04069099 100% 0% MFN Rate 6,600 
tons 50% MFN 
Rate 2,405 
tons
b  WTO 
Powdered 
milk 04021001 
04022101 63% 0% MFN Rate 5,000 
tons 0% MFN 
Rate 80,000 
tonsc  WTO 
Pastry 
preparations 21069002 15% 
+ 
0.36 
USD/Kg 
of sugar  0% 10.8%e  
+  
0.26 
USD/Kg of sugar 4,200 
tons 50% MFN 
Rate 183,800 
tons
d  WTO 
 
a This quantity is shared with the following lines: 04069001; 04069002; 04069003; 04069004; 
04069005; and 04069099. 
b This quantity is shared with the foll owing lines: 04069001; 04069002; 04069004 and 04069006.  
c This quantity is shared with the following lines: 04061001; 04063001 and 04063099.  
d This quantity is shared with the following lines: 17022001; 17023001; 04029901; 04029999; 
18062001; 18063201; 18069001; 18069002; 18069099; 19019003; 19019005; 19019099; 21039099; 21069001; 22029001; 22029002; 22029003; 22029004 and 22029099. 
e Tariff rate after the application of  a margin of preference of 28%.  
 Source: Data provided by the Mexican Authorities.  
3.2  Rules of origin 
3.21.  In Chapter 4 on rules of Origin, the Parties characterize originating goods and specify the 
requirements a good must meet to acquire originating status. In the event of any inconsistency between Chapter 4 and the WTO Customs Valuation Agreement, Chapter 4 will prevail (Article 4.2).  
3.22.  Under the Agreement, the Parties establish a Committee on the Rules of Origin 
(Article 4.18). There is no provision regarding the schedule of meetings.  
3.2.1  Requirements for the determination of origin 
3.23.  Unless specified otherwise in Chapter 4, a good qualifies as originating if it is:  
 wholly obtained or produced in one or both Parties (as described in Article 4.1); 
 produced in one or both Parties, using only originating materials in accordance with 
Chapter 4; 
 produced in one or both Parties using non-originating materials that meet the change in 
tariff classification (CTC); the regional value content (RVC)
25; or the CTC and the RVC;  
as well as any specific rule of origin set out in Annex 4.3; and any other applicable 
requirement (Article 4.3);  
 produced in one or both Parties using non-originating materials that do not comply with 
the CTC but has an RVC of at least 40%26 or 50%27 depending on the calculation 
                                               
25 The formula to compute the RVC is set in Article 4.4.  
26 When the net cost method is used. WT/REG345/1 
 
- 18 - 
  method, and that the good satisfies all other applicable requirements of this Chapter. 
This rule does not apply to goods in headings 4201-4203 (articles of leather, saddlery and harness and travel goods) and chapters 61-63 (textiles). In addition, for non-originating materials the reasons for not complying with the CTC must be that: 
(a) the good was imported into a Party in an unassembled or a disassembled form but 
was classified as an assembled good according to the rules for the Interpretation of the Harmonized System; or (b) the heading for the good refers to both the good itself and 
its parts and is not further subdivided into subheadings
28 (Article 4.3). 
3.24.  For the purposes of this Chapter, the prod uction of a good using non-originating materials 
that meet the related CTC and other requirements must take place entirely in the territory of one or both Parties and any RVC of a good shall be entirely met in their territories (Article 4.3).  
3.25.  Any good produced in accordance with Article 4.3 will lose its originating status if it 
undergoes in the territory of a non-party any further processing or operation other than preservation, unloading, or reloading during its transportation (Article 4.16).  
3.26.  All rules specified in Annex 4.3 contain a CTC requirement. Depending on the product the 
CTC rules apply within product categories at the chapter (HS 2-digit), heading (HS 4-digit) or subheading (HS 6-digit) level, or across catego ries (from heading to subheading, chapter to 
subheading, and from chapter to heading). In general for products in chapters 1-24, only a CTC 
requirement applies, and in about half of the case s, it can be replaced by a RVC requirement. For 
products in chapters 25-97, goods can be subjec t to a CTC requirement or a combination of the 
CTC and RVC requirements. Certain products also n eed to meet a specific manufacturing condition. 
When only a CTC requirement applies, it can be replaced in certain cases by a specific 
manufacturing condition or by a RVC requirement.  
3.2.2  Cumulation  
3.27.  The Agreement allows for bilateral cumulation
29 and since March 2013 for extended 
cumulation.30 
3.28.  Under the extended cumulation, materials from non-parties are considered as originating 
materials provided that the Parties have an FTA (in force) with these non-parties and that these 
FTAs contain a provision that is equivalent in effect. The Parties can establish conditions for the application of such cumulation. As of May 2014,  no specific condition had been established 
according to the Parties. Extended cumulation applies only to goods and materials included in the 
Parties' liberalization schedules (Article 4.19).  
3.2.3  De minimis  rule 
3.29.  The Agreement includes a de minimis  provision, under which a good qualifies as originating 
if the value of all non-originating materials used in its production which do not satisfy the specific 
rules of origin set in Annex 4.3 do not exceed 8% of the transaction value of the good (Article 4.6) (or 8% of the total cost for cases listed in Articl e 4.4(5)). A good subject to an RVC requirement 
that meets the de minimis  condition, does not need to meet the RVC requirement. The de minimis  
provision does not apply to:  
 textiles and clothing (chapters 50-63) 
                                                                                                                                               
27 When the transaction value method is used. Duri ng the first three years following the Agreement's 
entry into force, for 141 headings will be subject to an RVC of 40% (instead of  50%) when the transaction 
value method is used (Annex 4.3). 
28 Or when the subheading designates both the good itse lf and its parts. 
29 This implies that a Party can use originating inputs of  the other Party in the production of a good as if 
they were their own. The final good will qualified as or iginating as long as it satisfies the requirements of 
Article 4.3 (Article 4.8). 
30 Extended cumulation was provided in the 2012 Protocol to the Agreement, which entered into force in 
March 2013. WT/REG345/1 
 
- 19 - 
   non-originating materials used in the production of goods in HS chapters 1-24, unless 
these materials are classified in a different subheading (6-digit level) than the good for which origin is being determined.  
3.2.4  Other factors affecting the originating status of a good  
3.30.  Chapter 4 indicates how to deal with interm ediate materials, indirect materials and goods in 
transit in the determination of origin status. Indirect materials will be considered as originating materials regardless of where they are produced (Article 4.11).
31 Originating goods in transit or 
transhipment are to maintain their status provided that: (a) the transit is technically justified; 
(b) they are not destined for the transit country; and (c) they do not undergo any further processing in the territory of a non-party other than preservation, unloading, or reloading (Article 4.17). Inputs are to be considered as intermediate materials under the Agreement if they 
are self-produced materials used in the production of a good and qualify as originating goods in 
accordance with Articles 4.3 (Article 4.7). Intermediate materials are to be treated entirely as originating goods when computing the RVC of a final good (Article 4.5).
32 In addition, Chapter 4 
specifies how to determine the (origin) status of fungible goods and materials; sets or assortments 
of goods; accessories, spare parts and tools; packaging materials for retail sale; and packing materials and containers for shipment (Articles 4.9 to 4.14). 
3.31.  Finally, Chapter 4 lists the operations that do not confer originating status to a good. The 
list includes cleaning, washing, division, grouping , packing or repackaging, as well as operations 
that guarantee the preservation of goods (Article 4.15). 
3.2.5  Administration of the rules of origin  
3.32.  The procedures for the administration of the rules of origin are described in Chapter 5. To 
claim preferential treatment under the Agreement,  importers must present a certificate of origin
33, 
except for imports with a value lower than US$1,00034, or goods benefitting from a waiver by the 
importing Party (Articles 5.3 and 5.5). Importers ar e also required to provide a statement that the 
good qualifies as originating (Article 5.3). As provided by the Agreement, the Parties adopted a 
single format for the certificate of origin. The certificate is valid for two years from the date of 
issue and applies to a single shipment of one or more goods to one Party or to multiple shipments 
of the same good (Article 5.2). 
3.33.  The Agreement also foresees procedures to verify the accuracy of the certificate of origin, 
including information requests, questionnaires and verification visits (Article 5.8). Finally, it 
includes provisions on the confidentiality of the information collected (Article 5.9), rulings prior to 
the goods being shipped (advance ruling) (Article 5.10), imposition of sanctions for violation of 
laws or regulations relating to Chapter 5 (Article 5.11), the review and appeal of proceedings 
relating to the determination of origin (Article 5.12), and the implementation of uniform 
regulations regarding the interpretation, appl ication and administration of Chapters 2-5 
(Article 5.13). 
3.34.  In the area of co-operation, the Parties commit to notify each other of any measure 
affecting the determination of origin of a good; advance rulings; and in certain cases of rulings on the determination of origin. They also agree to cooperate, among others, on the application of 
                                               
31 Indirect materials are goods used in the production, testing, or inspection of a good but that are not 
physically incorporated into the good, or a good used  in the maintenance of buildings or the operation of 
equipment associated with the production of a good, including fuel and energy, spare parts and materials 
(Article 4.1). 
32 This implies that non-originating inputs contained in  the production of an intermediate material which 
has acquired originating status and is subsequently used in the production of a good  are not taken into account 
when determining the origin of the final product (Article  4 . 5 ) .  T h i s  t y p e  o f  p r o v i s i o n  i s  a l s o  k n o w n  a s  t h e  
absorption principle.  
33 Exporters are required to keep the certificate of origin and other documents relating to the origin of a 
good for at least five years following the date on whic h the certificate was signed. Importers are also required 
to keep the certificate of origin and other documents rela ting to the import for at least five years following the 
date the good was imported (Article 5.6). 
34 Or its equivalent amount in national currency. If  the good is imported fo r commercial purposes, the 
importing Party can require a receipt or a statement certifying that the good qualifies as an originating good (Article 5.5). WT/REG345/1 
 
- 20 - 
  their regulations affecting the Agreement's implem entation; the exchange of trade statistics and 
customs information; verification of the good's origin and the establishment of a mechanism to track down and prevent illegal trade (Article 5.14). 
3.3  Export duties and charges,  and quantitative restrictions 
3.35.  Export taxes affecting trade between the Parties are prohibited under the Agreement, 
except for traditional exports from Uruguay and basic foodstuffs from Mexico.
35 Mexico's list of 
basic foodstuffs includes rice, sugar, coffee, beer, and milk. Moreover, Mexico may apply an export 
tax on any foodstuff on a temporary basis (i.e. up to one year) to relieve shortages of that 
foodstuff (Article 3.10 and Annex 3.12). As of May 2014, no export tax had been applied by the Parties. 
3.36.  The Agreement also forbids the adoption or maintenance of any measure that prohibits or 
restricts exports to the other Party, except as provided in Annex 3.12 (See previous paragraph) 
and Article XI of the GATT 1994. Export price requirements are also prohibited in accordance with WTO provisions (Article 3.8). 
3.4  Regulatory provisions on trade in goods 
3.4.1  Standards 3.4.1.1  Sanitary and phytosanitary measures 
3.37.  In Chapter 8 on Sanitary and Phytosanitary (SPS) measures, the Parties re-affirm their 
rights and obligations under the WTO SPS Agreement (hereafter the "SPS Agreement") (Article 8.1) and indicate that in case of dispute in this area, they will have recourse to the Agreement's Dispute Settlement Mechanism (DSM) (Article 8.11). They also establish a Committee 
on SPS measures which shall meet at least once a year (Article 8.10). As of May 2014, three 
meetings had taken place, the most recent one was in May 2008. The Committee is in charge, among others, of monitoring the implementation of Chapter 8.  
3.38.  Chapter 8 includes provisions on equivalence (Article 8.3), risk assessment (Article 8.4), 
adaptation to regional conditions (Article 8.5), SPS procedures and certification (Articles 8.6 and 8.7), food safety (Article 8.8) and transparency (A rticle 8.9). In most cases, these provisions are 
new or more detailed than those in the SPS Agreement. 
3.39.  In the area of equivalence and like in the SPS Agreement (Article 4), the Parties will accept 
the SPS measures of the other Party as equivalent, even if these measures differ from their own. In addition, the Agreement provides for consultati ons regarding the recognition of the equivalence 
of SPS measures.
36 For this purpose, they will take into account international guidelines and give 
access, upon request by a Party, to the other Pa rty's territory for inspection, testing and other 
relevant procedures (Article 8.3).  
3.40.  In risk assessment, the Agreement includ es some of the main principles described in 
Article 5 of the SPS Agreement (Article 5, paragraphs 1, 4 and 5)37 but also adds new provisions 
on the procedures of risk assessment. For instance , the Parties agree on the procedures as well as 
on the deadlines to prepare an application of a ri sk assessment report to streamline the process of 
risk assessment (Article 8.4).  
3.41.  In adaptation to regional conditions, the Parties agree to recognize an area as free from a 
specific pest or disease in accordance with Arti cle 6 of the SPS Agreement. They further commit to 
establish agreements on specific requirements which will allow a good produced in a pest or 
                                               
35 Uruguay indicated that traditional exports include some agricultural and an imal products such as 
meat, wool and leather. 
36 The SPS Agreement provides for consultation, upon request, "with the aim of achieving bilateral and 
multilateral agreements on recognition of the equivalence of specified sanitary or phytosanitary measures." 
37 According to these provisions, the SPS measures ar e to be based on an assessment of the risks to 
human, animal or plant life and heal th. The Parties must also minimize the negative effects on trade when 
determining the level of SPS protecti on and avoid arbitrary distinctions in the levels applied in different 
situations. WT/REG345/1 
 
- 21 - 
  disease-free area in the territory of the exportin g Party to be imported into the territory of the 
other Party if it achieves the required level of  protection (Article 8.5). As of May 2014, no 
agreement had been signed in this area. 
3.42.  Regarding control and certification procedures, the Parties will allow imports of animal 
products from processing plants as long as their facilities have been approved according to their 
national legislation (Article 8.6). Imported pl ants or vegetables must be accompanied by a 
SPS certificate issued by the exporting Party. The certificate will be valid for 45 days (Article 8.7). 
The importing Party will notify the exporting Party of the cases where the good fails to fulfil the 
certification requirements.  
3.43.  With respect to transparency and in acco rdance with the SPS Agreement, the Parties have 
to notify each other of their SPS measures, but they must also notify events such as the 
occurrence or outbreak of a disease and the reasons why a product is rejected by the importing 
Party (Article 8.9).  
3.44.  Finally the Agreement includes a provision on food safety (absent from the SPS Agreement), 
which prohibits the Parties from establishing without proof a causal link between the outbreak of a 
disease and the consumption of an imported product (Article 8.8).  
3.4.1.2  Technical barriers to trade 
3.45.  Chapter 9 on Technical Barriers to Trade (TBT) applies to standards, technical regulation 
and conformity assessment procedures. It contains provisions on risk assessment, consultations, transparency, technical cooperation, as well as on the harmonization and equivalence of technical regulations and conformity assessment procedures. These provisions follow to a large extent the 
principles of the WTO TBT Agreement (hereafter the "TBT Agreement"), although in some cases 
they are more or less detailed. The Parties affirm their right and obligations under the TBT Agreement (Article 9.4).  
3.46.  In accordance with the TBT Agreement (Article 2), the Parties can adopt any standard, 
technical regulation and conformity assessment procedure to fulfil their legitimate objectives, as well as any measure to ensure their enforcement or implementation. To the extent possible, these 
measures will follow relevant international standards or recommendations, except when such 
international measures are ineffective or inappropriate to fulfil the objectives pursued (Article 9.4). These measures should not constitute an unnecessary obstacle to international trade and should take into account the risks that non-fulfilment woul d create if a good or service is commercialized. 
3.47.  In risk assessment, the provision in the Agreement is more detailed than in the 
TBT Agreement (Article 2(2)). For instance, the Agreement expands the list of factors
38 that a risk 
assessment must take into account and provides for the exchange of information39 regarding the 
assessment.  
3.48.  In the area of harmonization and equiva lence, the Parties agree to promote, upon the 
request by the other Party, the compatibility of their technical regulations and conformity 
assessment procedures (Article 9.5). In addition, th ey will give positive consideration to accepting 
the technical regulations of the other Party as equivalent to their own, as well as a request to negotiate a mutual recognition agreement (Article 9.5), which reflects Articles 2(7) and 6(3) of the TBT Agreement.  
3.49.  With respect to transparency, the provisions  in the Agreement regarding the notification and 
the exchange of information of any proposed standard, technical regulation or conformity assessment procedures are broader (or more general) than those in the TBT Agreement. Under 
the Agreement, any proposed standard, technical regulation or conformity assessment procedure 
(or its modifications) must be notified to the other Party in writing (Article 9.7), while under the TBT Agreement, not all proposed measures must  be notified. Under the TBT Agreement, only 
                                               
38 In assessing such risks, a Party may take into account available scientific and technical information, 
related processing technology or intended end-uses of products (like in the TBT Agreement), as well as 
production, operating, inspection, sa mpling or testing methods; or environmental conditions (Article 9.6).  
39 Upon request, a Party will also provide with all the information relating to the risk assessment and to 
the factors taken into account to the establishment of the level of protection (Article 9.6). WT/REG345/1 
 
- 22 - 
  technical regulations and conformity assessment procedures that (a) are inconsistent with 
international standards or recommendations or when such standards do not exist; and (b) can have a significant effect on the trade of other Members must be notified to the WTO Secretariat (Articles 2(9) and 5(6) of the TBT Agreement) . In addition, under the Agreement the Parties 
commit to inform each other of their programmes with respect to standards, technical regulations 
or conformity assessment procedures and to k eep a list of their measures (available upon 
request). A Party will also allow the participation of non-governmental persons from the other 
Party in the development of its measures, when it allows the participation of non-governmental 
persons from its own territory (Article 9.7).  
3.50.  In the area of technical cooperation, the provision in the Agreement (Article 9.8) is less 
detailed than that in the TBT Agreement (Article 11). Under the Agreement, each Party, upon 
request by the other Party, will provide technical advice, assistance and information, and will 
consult with that Party during the development of, or prior to the adoption or modification of, any standard, technical regulation and conformity assessment procedure. The Parties can refuse to 
release information that could damage the commercial interests of certain companies (Article 9.9), 
which is broader than the provision in the TBT Agreement (Article 5 (2.4)) which focuses on the confidentiality of information regarding products in connection with conformity assessment 
procedures. They will also promote cooperation between the standardizing bodies in their 
territories (Article 9.8).  
3.51.  Finally, under the Agreement, any Party can call for a bilateral meeting to consider or 
consult any standards-related issues, facilitate the harmonization between their standards-related 
measures, and facilitate the negotiation process of mutual recognition agreements, among others 
(Article 9.10). As of May 2014, no bilateral meetings had been held. 
3.4.2  Safeguard mechanisms 
3.52.  The Agreement allows for the application of global and bilateral safeguard measures. In 
general, the provisions in the Agreement are mo re detailed than those in the WTO Agreement on 
Safeguards (hereafter the "Safeguards Agreement"), in particular with respect to investigation 
procedures and transparency (including notifications). In addition, the Agreement contains a more 
precise definition of "domestic industry" than  that in the Safeguards Agreement. In the 
Agreement, a "domestic industry" refers to producers accounting for at least 50% of the 
production of the like or directly competitive good  (Article 6.1), while in the Safeguards Agreement 
a "domestic industry" is defined as producers accounting for a major proportion of the total 
domestic production of a similar or directly competitive good (Article 4).  
3.53.   The Agreement also permits the application of safeguards measures for balance of 
payments reasons (See Section 3.4.2.4). 
3.54.   The Agreement does not include any provision regarding special safeguards.  3.4.2.1  Global safeguards 
3.55.  The Parties reaffirm their rights and obligations under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards regarding the a pplication of global safeguards, except for 
provisions regarding compensation and retaliation when they are incompatible with the Agreement 
(Article 6.3). 
3.56.  The conditions of application as well as the features of the safeguard measure are more 
specific in the Agreement than in the Safeguards Agreement. A Party can apply a global safeguard to a good of the other Party, only if the imports of the good account for a substantial part of total 
imports and are a major cause of serious injury or threat to the importing Party. Under the 
Agreement, imports are to be considered substantial if they fall within the top 5 main importers of 
that product during the three years prior the entry into force of the Agreement. The imports will be 
considered as a major cause of the injury if thei r growth rate during the period of expansion is 
substantially higher than that of imports from all other partners during the same period. In case a 
Party has excluded the other Party from the application of the global safeguard and an investigation shows that the exclusion reduce the effi cacy of the measure, it will have the right to 
taken them into account subsequently. The safeguard will cover only imports that exceed the WT/REG345/1 
 
- 23 - 
  imports annual average, computed over the last th ree years prior to the injury or the threat. For 
the remaining imports, the tariff preferences in pl ace at the moment of the injury will continue to 
apply (Article 6.4). 
3.57.  The Parties indicated that a good cannot be subject simultaneously to a bilateral and a 
global safeguard. 
3.4.2.2  Bilateral safeguards  3.58.  The Parties may apply bilateral safeguards during a transition period (10 years)
40 if 
following the Agreement an increase in imports of a good causes serious injury or a threat thereof 
to sectors in the importing Party producing a like or directly competitive good (Article 6.5-6.6). Like for global safeguards, the conditions of application and the features of a bilateral safeguard are very detailed in the Agreement.   
3.59.  The safeguard will consist of a suspension or reduction of the tariff preference.
41 The 
safeguard will apply only to imports that exceed the annual average of imports, computed over the 
three years prior to the injury or the threat. For the remaining imports, the tariff preferences in 
place at the moment of the injury will continue to apply. A bilateral safeguard on a product, 
including the provisional safeguard, can be applie d for only one year and can be extended only 
once and for one year. As a result, a safeguard measure under the Agreement can be applied for a 
maximum period of two years, including extension and provisional applications, compared to 
8 years under the Safeguards Agreement (Article 7).42 Moreover, contrary to the Safeguards 
Agreement (Article 7), safeguard measures under the Agreement cannot be applied more than once to the same good, unless the Administrative Commission of the Agreement authorizes to do 
so (Article 6.5).  
3.60.  Upon termination of the bilateral safeguard, the applied rate shall be that established in the 
Parties' tariff schedules (Article 6.5).  
3.61.  The Agreement also includes an article on provisional safeguards (Article 6.6), which mirrors 
to a large extent that in the Safeguards Agreement (Article 6). Like the Safeguards Agreement, the Agreement permits the application of a provisional safeguard if a delay in its application would 
cause damage difficult to repair and if a preliminary investigation showed that the increased 
imports have caused or are threatening to cause serious injury to a domestic industry. The provisional safeguard can be applied for a maximum of 200 days and will take the form of tariff 
increases. The funds resulting from such increases will be refunded, with interest (not mentioned 
in the Safeguards Agreement), if the final investigation concludes that the increased imports are 
not the cause of or do not threaten to cause any serious injury to a domestic industry. 
3.4.2.3  Other provisions governing bo th global and bilateral safeguards 
3.4.2.3.1  Application procedures 
3.62.  Like in the Safeguards Agreement, the Parties can apply a safeguard measure only if an 
investigation determines so (Article 6.8). The investigation (Articles 6.8 and 6.9) must be carried 
out in accordance with the Safeguards Agreement (Article 4). 
3.63.  Like in the Safeguards Agreement (Article 8), compensation by the Party applying a 
safeguard measure is required (Article 6.16). The compensation will take the form of concessions with equivalent trade effects and will be mutually agreed with the exporting Party through 
consultations. This is more detailed than in the Safeguards Agreement, which does not define the 
                                               
40 The "transition period" is a 10-year period starti ng from the date of the entry into force of the 
Agreement. For goods with tariff elimin ation schedules longer than 10 years, the transition period shall be the 
period of their tariff elimination (Article 7.1). 
41 The reduction of the tariff preference implies an incr ease in the applied rates. The increase in tariffs 
will not exceed the lesser of the MFN applied tariff in effect at the time the action is taken and the MFN applied tariff in effect the day before the Agreem ent entered into force (Article 6.8).  
42 Under the WTO Agreement on Safeguards, safeguards  can be applied for a maximum period of four 
years with possible extensions, and eight years, when taking into account provisional and initial applications and extensions. WT/REG345/1 
 
- 24 - 
  type of compensation (Article 8). If consultations fail, safeguards may still be imposed but 
retaliation is authorized within 60 days following the application of the safeguard measure instead of 90 days in the Safeguards Agreement. Also, cont rary to the Safeguards Agreement, the right of 
suspension/retaliation is not subject to conditions (Article 8 (3)). 
3.4.2.3.2  Transparency 
3.64.  In general, the provisions on noti fications are more detailed in the Agreement 
(Articles 6.18-6.19) than in the Safeguards Agreement (Article 12). Moreover, under the 
Agreement, consultations are in general a prior condition for the initiation of an investigation and 
for the application of a safeguard measure (or extension) (Articles 6.18 and 6.19).
43 The Party will 
request these consultations (Article 6.17) when it notifies the other Party of its intention to initiate a global or bilateral safeguard investigation; and of the application of a safeguard measure (or its 
extension). If the notified Party fails to accept or attend the consultations, nothing will prevent the 
other Party from applying the safeguard measure. These provisions do not apply to a provisional measure, which can be applied without prior consultations as long as these are conducted within 
10 days after the measure is taken.  
3.65.  The provisions regarding the access to information are also more detailed than in the 
Safeguards Agreement. In general in the Safeguards Agreement, the findings of the investigation, 
conclusions or the related analysis must be published, while under the Agreement, this information 
must be sent to the interested parties immediately or made available two days after the information has been presented to the competent authorities (Article 6.10). Moreover under the Agreement, the importing Party must publish any resolution related to the investigation, notify the 
other Party and be open for consultations (Article 6.14). The Parties also commit to establish 
mechanisms to enhance transparency in the investigation proceedings such as sanctions and mechanisms to guarantee the access of information to all interested parties, including confidential 
information (Article 6.12).
44 Finally, the Agreement includes provisions on public hearings, which 
are more detailed than in the Safeguards Agreement (Article 6.13). 
3.4.2.4  Safeguards related to the balance of payments 
3.66.  In the event of serious difficulties (or threat) related to the balance-of-payments, the 
Parties can maintain or adopt measures to restrict any transfer. Such measures must be applied on a temporary and non-discriminatory basis; and be proportional to the risks arising from the 
situation (Article 19.6).  
3.4.3  Anti-dumping and countervailing measures 
3.67.  In accordance with the WTO Agreements on Antidumping and on Subsidies and 
Countervailing Measures (SCM), the Agreement allows the application of additional duties to 
imports of the other Party if an investigation proves the existence of dumping or subsidies and a 
causal link between the dumped/subsidised imports and the alleged injury or threat (Article 7.3). The Agreement also contains provisions regarding the notification of an investigation 
(Article 7.6)
45, the publication and notification of decisions (Article 7.7), and the submission of 
information for the investigation (Article 7.8). In general, these provisions reflect those in the WTO Agreements on Antidumping and SCM, except  for the provisions on notifications and the 
submission of information which are more detailed. Moreover, some of the deadlines applied 
during the investigation process differ from those indicated under the WTO Agreements and are in 
general more favourable for the exporting Party under the Agreement. For instance, the deadline 
to submit the answers to questionnaires
46 is 25 days from the date of the beginning of an 
investigation (Article 7.8), while under the WTO Agreements on Antidumping (Article 6) and SCM 
(Article 12), the deadline is 30 days from the date of receipt of the questionnaire. Moreover, under 
                                               
43 Once consultations have taken place, the investigation can be launched, except in the case of 
provisional measures (Article 6.18). Similarly, safeguard measures can be applied or extended only if consultations to determine the compensation for the adverse effects of the measure have taken place (Article 6.19). 
44 The Agreement includes a de finition of confidential information (Article 6.11). 
45 And request for consultation in the case  of an investigation of subsidies.  
46 The questionnaires will be sent together with notification of the beginning of an investigation and the 
related determination. WT/REG345/1 
 
- 25 - 
  the WTO Agreements provisional measures can be applied after 60 days from the date of initiation 
of the investigation (Articles 7.3 and 17.3 of WTO Agreements on Antidumping and SCM, respectively), while under the Agreement the period  of non-application is 90 days from the date 
the resolution on the initiation of the investigation is published. Finally, under the Agreement the 
deadline to reimburse any difference between the amount collected and the final measure is 
60 days from the date the resolution with the final measure is published, instead of 90 days in the case of antidumping measures (Article 9.3 of the WTO Antidumping Agreement). In the case of 
countervailing measures the WTO Agreement on SCM (Article 20.3) does not specify any minimum 
period. 
3.4.4  Subsidies and State aid 3.68.  The Parties commit to eliminate export subsidies on agricultural goods affecting their 
bilateral trade upon the Agreement's entry into force, as well as subsidies on non-agricultural 
goods in accordance with Article 3 of the WTO Agreement on SCM (Articles 3.12 and 7.4). For agricultural subsidies, they waive any right allowing them to apply export subsidies or any other 
related right resulting from multilateral negotiations under the GATT. If a Party considers that a 
non-party is exporting a subsidized product to the other Party, the Parties shall, upon request of the exporting Party, hold consultations to agree on  the measures that could be adopted to counter 
the effects of the export subsidy (Article 3.13). 
3.69.  For domestic support, the Parties will  follow the WTO Agreement on Agriculture 
(Article 3.14).  
3.70.  The Agreement does not contain provisions on State aid.  
3.4.5  Customs-related procedures 
3.71.  There are no other customs-related procedure provisions besides those related to the origin 
of goods, described in section 3.2.6 of this document.  
3.5  Sector-specific provisions on trade in goods 3.72.  Besides the provision regarding agricult ural export subsidies and domestic support 
(Articles 3.13-3.14), there are no other sector-specific provisions on trade in goods in the 
Agreement.  
3.6  Further negotiations 
3.73.  The Agreement includes a review clause (Article 20.8) that allows the Parties to re-examine 
the provisions on tariffs, quotas and rules of origin and undertake new negotiations. The review was to take place between 2004 and 2006 (Article 20.8). In this regard, the Parties indicated that an assessment on the functioning of the Agreement took place during the 2006 meeting of the 
Administrative Commission. 
4  GENERAL PROVISIONS OF THE AGREEMENT 4.1  Transparency 
4.1.  Chapter 16 contains provisions on transparency. Under the Agreement, the Parties shall 
designate a contact point to facilitate communica tions between them (Article 16.1) and ensure 
that any law, regulation or procedure with respect to any matter covered by the Agreement is 
promptly published. To the extent possible, they  shall publish any proposed measure and notify 
each other of any actual measure that may affect the Agreement. They will also give each other the opportunity to send comments or ask for information regarding any proposed measure; and provide, upon request, any information or answer to questions regarding an actual measure 
(Articles 16.2 and 16.3).  WT/REG345/1 
 
- 26 - 
  4.2  Current payments and capital movements 
4.2.  Under the Agreement, all transfers, including payments and capital movements, relating to 
investments by investors of the other Party are to be made freely and without any restriction or delay. The Parties can restrict transfers in the case  of: (a) bankruptcy, insolvency or the protection 
of the rights of creditors; (b) issuing, trading, or dealing in securities; (c) penal offences; 
(d) financial reports; or (e) compliance with orders or judgments in judicial or administrative proceedings (Article 13.10). 
4.3  Exceptions 
4.3.  Chapter 19 on exceptions describes the circumstances under which the Parties can derogate 
from the provisions in the Agreement. The Ch apter covers general and security exceptions, 
disclosure of information, taxation and balance of payment measures.  
4.4.  Articles XX of GATT 1994 and XIV of the GATS (on General Exceptions) are incorporated into 
the Agreement. GATT Article XX applies to Chapters 3 to 9 to the extent that provisions apply to goods; while GATS Article XIV applies to Chapters  9-11, and to a certain extent to Chapters 3-8 
(Article 19.2).  
4.5.  Under the Agreement, the Parties have no obligation to furnish or allow access to any 
information contrary to their security interests and can adopt any measure they consider 
necessary to keep peace or protect their essential security interests (Article 19.2). They are also 
not obliged to provide access to confidential information whose disclosure could impede law enforcement or be contrary to their Constitution and laws (Article 19.4). 
4.6.  The Agreement does not apply to taxation measures and does not affect the rights and 
obligations of the Parties under any tax convention, except for Articles 3.2 (on National 
Treatment), 3.10 (on Export taxes) and 13.11 (on Expropriation and Compensation). In the event 
of any inconsistency between the Agreement and a tax convention, the convention will prevail to 
the extent of the inconsistency (Article 19.5). If a tax measure is considered as an expropriation 
under the Agreement (Article 13.11), the Parties may challenge the decision but cannot have recourse to the Agreement's DSM (Article 19.5) . Instead, the Party can submit a claim in 
accordance with the International Centre for Sett lement of Investment Disputes (ICSID) or the 
United Nations Commission on International Trade Law (UNCITRAL) (Article 13.20).  
4.4  Accession and Withdrawal 4.7.  The Agreement has provisions on accessions and terminations. Any country can accede to the 
Agreement subject to the terms and conditions agreed between the Parties. The Agreement will 
enter into force once all its internal requirements have been finalized and notified to the Parties. 
The Agreement will only enter into force between the new member and the existing Parties that 
agree to do so (Article 20.6).  
4.8.  Any Party can end the Agreement. The termination will take effect six months after the 
notification, unless the Parties agree otherwise. If following an enlargement of the membership 
there are more than three Parties to the Agr eement and a Party withdraws, the Agreement will 
continue to be in force for the remaining Parties (Article 20.7). 
4.5  Institutional framework 4.9.  The Agreement foresees the creation of an Administrative Commission that comprises 
ministerial-level representatives from each Party (Article 17.1). It further establishes Committees 
on trade in goods, rules of origin and customs procedures, SPS, movement of natural persons and 
trade and competition (Annex 17.1). The Parties indicated that all these Committees have met, 
except for the Committee on Trade and Competition. 
4.10.  The Administrative Commission is the ma in institutional body of the Agreement and is 
responsible, among others, for supervising its implementation and developments; resolving any 
dispute arising from its interpretation or implementation, supervising the work of all committees; 
and considering any other matter that may affect the operation of the Agreement. It shall take all WT/REG345/1 
 
- 27 - 
  its decisions by consensus and meet at least once a year (Article 17.1). As of May 2014, the 
Commission had met fourth times (once in 2006, 2007, 2008 and another in 2012).  
4.6  Dispute settlement 4.11.  The Agreement provides for a mechanism fo r the settlement of disputes between the Parties 
(Chapter 18) and between a Party and an investor of the other Party (Chapter 13, Section C). 
Unless specified otherwise in the Agreement, Chapter 18 applies to any dispute between the Parties related to the interpretation or application of the Agreement or wherever a Party considers 
that an actual measure of the other Party: 
 is inconsistent with its obligations; or  
 nullifies or impairs the benefits that could have resulted from the application of 
Chapters 3-10 and Chapter 15 (on Intellectual Property) (Articles 18.1 and Annex 
18.1).
47 
4.12.  For disputes regarding any matter arising under the Agreement and the WTO Agreement 
the complaining Party may select the forum for the settlement of the dispute. Once the forum has 
been selected, it must be used to the exclusion of the other (Article 18.2).  
4.13.  The Parties will endeavour to resolve through consultations any matter described in 
Article 18.1 (see above) (Article 18.3). If consultations fail, the complaining Party can request the 
establishment of a dispute settlement (DS) panel (Article 18.4).48 The Panel will submit a report to 
the Administrative Commission (hereafter "the Commission") within 90 days from the date the 
panel was established, with its conclusions and determinations on the issue under analysis (Article 18.10). The Commission will adopt the report within 15 days following its receipt, unless 
there is a consensus against it. If the Commission does not meet, the report will be considered as 
adopted (Article 18.11). If the Party fails to comply  with the report and no mutually satisfactory 
solution is reached within 60 days from the receipt of the report by the Commission, the 
complaining Party can suspend the benefits granted under the Agreement.
49 The suspension of 
benefits shall apply until the Party complained against has complied or until the dispute has been resolved (Article 18.13).
50 Upon request by a Party, the Commission will establish a special arbitral 
tribunal to determine whether the level of benefits suspended is excessive. This tribunal will 
present its final decision within 60 days from its constitution, unless the Parties agree otherwise (Article 18.14). Chart 4.1 summarizes the procedure for the settlement of a dispute.  
4.14.  Chapter 13 describes the settlement of investment disputes between a Party and an 
investor of the other Party (Chapter 13, Section C). Under this mechanism, investors (on their own 
behalf or that of an enterprise) can make a claim and seek redress for damages resulting from a breach of the host Party' obligations regarding investments (Chapter 13, Section B), State 
enterprises (Article 14.4) and monopolies (Article 14.3) (Article 13.17). Any claim made after 
three years from the date the breach took place will not be taken into account.  
                                               
47 Measures covered by the provision on general exce ptions are not subject to the dispute settlement 
mechanism (Annex 18.1). 
48 The Panel will consist of three panellists (unless otherwise agreed by the Parties) and will operate 
according to the Rules of Procedures and Code of Co nduct established by the Administrative Commission 
(Articles 18.6 and 18.9). 
49 If the report concludes that: (a) a measure is incompatible with the Agreement or (b) a measure 
causes nullification or impairment, the other Part y must stop applying the measure under dispute 
(Article 18.12). 
50 In suspending benefits the Party should first consider benefits in the same sector(s) as those affected 
by the measures the Panel has found to be inconsiste nt with the obligations under the Agreement; if it 
considers that suspending benefits in the same sector is  ineffective or not practicable, it may do so in other 
sectors. WT/REG345/1 
 
- 28 - 
  Chart 4.1 Dispute Settlement Mechanism under the Agreement 
 
 
Source: Chapter 18 of the Agreement. 
4.7  Relationship with other agreements concluded by the Parties 
4.15.  The Parties affirm their existing rights an d obligations with respect to each other under the 
WTO Agreement and other agreements to which they are party (Article 1.3). 
4.16.  Upon the Agreement's entry into force, the Economic Complementation Agreement N°5  
(ACE 5) and the Agreement on Regional Preferences  (AR.PAR 4) between Mexico and Uruguay 
under the Latin American Integration Association (LAIA) framework became obsolete (Articles 3.3 and 20.9).  Consultations
(Art. 18.5)  Max. 30 days o r
 10 days for perishable goods Consultations request
(Art. 18.3) 
 The issue is resolved (Art. 18.10)   Request for establishment of DS Panel
(Art. 18.5) 
 Composition of DS Panel (Art. 18.5)
(Panel selection: within 15-30 days  
Chair selection: within 30 days)    
 Panel report sent to the Commission  
(Art. 18.10)  Max. 90 days or 
Max. 60 days for perishable goods  
 Meeting of the Commission   
(Art. 18.10 )  Max. 15 days
 Suspension of the benefits 
by the Complaining Party until the report is applied 
or agreement is reached  
(Art.18.11)  Non-compliance   Termination Implementation of the report (Art. 18.12)   Max. 37 daysWT/REG345/1 
 
- 29 - 
  4.17.  Table 4.1 lists the notified and non-notified (if any) trade agreements that have Mexico or 
Uruguay as members (excluding the current Agreement). 
Table 4.1 Mexico and Uruguay: Participation in  other RTAs (notified and non-notified in 
force), as of 1 July 2014 
RTA Name Date of entry 
into force Coverage Year of 
notification WTO Legal Cover 
Mexico 
Mexico-Central Americaa:  
Goods & 
Services 2014 GATT Art. XXIV & 
GATS Art. V  El Salvador 01-Sept-12 
 Nicaragua 01-Sept-12 
 Honduras 01-Jan-13 
 Costa Rica 01-Jul-13 
 Guatemala 01-Sept-13 
Peru – Mexico 01-Feb-12 Goods & 
Services 2012 GATT Art. XXIV & 
GATS Art. V 
Japan - Mexico 01-Apr-05 Goods & 
Services 2005 GATT Art. XXIV & 
GATS Art. V 
EFTA - Mexico 01-Jul-01 Goods & 
Services 2001 GATT Art. XXIV & 
GATS Art. V 
European Union - Mexico 01-Jul-00 (G) 
01-Oct-00 (S) Goods  
Services 2000 (G) 
2002 (S) GATT Art. XXIV  
GATS Art. V 
Israel - Mexico 01-Jul-00 Goods 2001 GATT Art. XXIV 
Chile - Mexico 01-Aug-99 Goods & 
Services 2001 GATT Art. XXIV & 
GATS Art. V 
Colombia - Mexico 01-Jan-95 Goods & 
Services 2010 GATT Art. XXIV & 
GATS Art. V 
North American Free Trade 
Agreement (NAFTA) 01-Jan-94 Goods & 
Services 1993 (G) 
1995 (S) GATT Art. XXIV & 
GATS Art. V 
Global System of Trade Preferences among Developing 
Countries (GSTP) 19-Apr-89 Goods 1989 Enabling Clause 
Latin American Integration 
Association (LAIA) 18-Mar-81 Goods 1982 Enabling Clause 
Protocol on Trade Negotiations 
(PTN) 11-Feb-73 Goods 1971 Enabling Clause 
LAIA - Accession of Panama 03-May-12 Goods - Not notified 
Mexico- Bolivia  
[LAIA, AAP.CE N°66] 07-Jun-10 Goods & 
Services - Not notified 
MERCOSUR - Mexico 
[LAIA, AAP.CE N° 55]: 
 Argentina, Brasil and Uruguay  
 
01-Jan-03 Goods - Not notified 
 Paraguay 01-Feb-11 
MERCOSUR - Mexico  
[LAIA, AAP.CE N° 54] 05-Jan-06 Goods - Not notified 
Brazil - Mexico  
[LAIA, AAP.CE N°53]  
02-May-03 Goods - Not notified 
Cuba - Mexico  
[LAIA, AAP.CE N°51]  
28- Feb-01 Goods - Not notified 
Mexico - Ecuador  
[LAIA, AAP.R N°29]  
01-May-83 Goods - Not notified 
Argentina - Mexico  
[LAIA, AAP.CE N°6]  
01-Jan-87 Goods - Not notified 
Mexico - Paraguay  
[LAIA, AAP.R N°38] 01-Jul-84 Goods - Not notified 
Mexico - Panama  
[LAIA, AAP.A25 N°14]  
24-Apr-86 Goods - Not notified 
LAIA - Cultural Goods  
[LAIA AR.CEYC N°7] 09-Aug-90 Goods - Not notified WT/REG345/1 
 
- 30 - 
  RTA Name Date of entry 
into force Coverage Year of 
notification WTO Legal Cover 
LAIA - Preferences in favour of 
Ecuador [LAIA, AR.AM N°2] 26-Mar-84 Goods - Not notified 
LAIA- Preferences in favour of 
Paraguay [LAIA, AR.AM N°3] 26-Oct-86 Goods - Not notified 
LAIA - Preferences in favour of 
Bolivia [LAIA, AR.AM N°1] 27-Aug-84 Goods - Not notified 
Uruguay 
MERCOSUR – India 01-Jun-09 Goods 2010 Enabling Clause 
Southern Common Market 
(MERCOSUR) 29-Nov-91 (G)  
07-Dec-05 (S) Goods & 
Services 1991 (G) 
2006 (S) Enabling Clause &  
GATS Art. V 
Latin American Integration 
Association (LAIA) 18-Mar-81 Goods 1982 Enabling Clause 
Protocol on Trade Negotiations 
(PTN) 11-Feb-73 Goods 1971 Enabling Clause 
MERCOSUR - Accession of 
Venezuela 12-Aug-12 Goods & 
Services - Not notified 
LAIA - Accession of Panama 03-May-12 Goods - Not notified 
MERCOSUR – Israel 23-Jun-09 Goods - Not notified 
Uruguay - Venezuela  
[LAIA, AAP.CE N°63] 03-Apr-09 Goods - Not notified 
MERCOSUR - Cuba  
[LAIA, AAP.CE N°62] 24-Feb-09 Goods - Not notified 
MERCOSUR - Peru  
[LAIA, AAP, CE N°58] 06-Feb-06 Goods & 
Services - Not notified 
MERCOSUR - Mexico  
[LAIA, AAP.CE N° 54 and 55] 05-Jan-06 Goods - Not notified 
MERCOSUR - Andean Community 
(except Peru) [LAIA,AAP.CE N°59] 05-Jan-05 Goods & 
Services - Not notified 
Argentina - Uruguay  
[LAIA, AAP.CE N°57] 01-May-03 Goods - Not notified 
MERCOSUR - Bolivia  
[LAIA, AAP.CE N°36] 28-Feb-97 Goods & 
Services - Not notified 
MERCOSUR - Chile  
[LAIA, AAP.CE N°35] 01-Oct-96 Goods & 
Services - Not notified 
Argentina-Brasil-Uruguay  
[LAIA, AAP.A14TM N°6] 27-Jun-92 Goods - Not notified 
Brasil - Uruguay  
[LAIA, AAP.CE N°2] 01-Oct-86 Goods - Not notified 
Argentina - Uruguay  
[LAIA, AAP.AG N°1] 14-May-84 Goods - Not notified 
LAIA - Seeds [AAP.AG N°2] 31-Aug-93 Goods - Not notified 
LAIA - Cultural Goods  
[LAIA AR.CEYC N°7] 1-Jan-89 Goods - Not notified 
LAIA - Preferences in favour of 
Ecuador [LAIA, AR.AM N°2] 9-Nov-87  Goods - Not notified 
LAIA- Preferences in favour of 
Paraguay [LAIA, AR.AM N°3] 9-Dic-87 Goods - Not notified 
LAIA - Preferences in favour of 
Bolivia [LAIA, AR.AM N°1] 20-Sept-83 Goods - Not notified 
 
a Following the entry into force of the agreement between Mexico and Central America, previous trade 
agreements between these countries (i.e. Mexico-N orthern Triangle, Mexico-Costa Rica and Mexico-
Nicaragua) became inactive.   
 Source: WTO Secretariat. WT/REG345/1 
 
- 31 - 
  4.8  Government procurement 
4.18.  The Parties agree to include a chapter on Government Procurement by 2006 (Article 20.4). 
The Parties indicated that negotiations in this area are still ongoing. 
4.9  Intellectual property rights 
4.19.  Issues related to intellectual property rights (IPRs) are covered in Chapter 15. The Chapter 
includes provisions on the protection of co pyrights, trademarks, geographical indicators, 
designations of origin, patents, plant varieties,  utility models, industrial designs, undisclosed 
information and control of anti-competitive licensing contracts.51 These provisions mirror those in 
the WTO Agreement on Trade-Related Aspects of In tellectual Property Rights (TRIPS), with some 
exceptions.  
4.20.  In enforcement, the Parties include prov isions on civil and administrative procedures, 
provisional measures, special requirements related to border measures, criminal procedures and 
sanctions (Articles 15.37-15.57) which are almost identical to the TRIPS Agreement (Articles 41-61).  
4.9.1  Main Principles 
4.21.  The Parties commit to grant MFN treatment to each other with respect to protection of 
intellectual property, but subject to almost th e same exceptions of Article 4 of the TRIPS 
Agreement (Article 15.4). Moreover, under Articl e 4 of the TRIPS Agreement, commitments on 
IPRs (with some exceptions) taken under the Ag reement must be extended to all WTO Members.
52 
4.22.  The Parties also commit to grant national tr eatment to nationals of the other Party, subject 
to the exceptions provided in the Paris, Berne, Rome and Geneva Conventions as well as the 
International Union for the Protection of New Varieties of Plants (UPOV) (Article 15.4).53 Moreover, 
the Parties cannot require right holders to comply with any formality or condition in order to acquire rights in respect of copyright and relate d rights, as a condition of granting national 
treatment (Article 15.4). 
4.23.  The Agreement, like the TRIPS Agreement (A rticle 8), permits the application of measures 
to prevent the abuse of IPRs by right holders, or th e resort to practices that negatively affect trade 
or the transfer of technology (Article 15.6). The Parties also agree to cooperate to eliminate 
international trade in goods infringing IPRs (Article 15.7).
54 
4.9.2  Copyrights 4.24.  Like under the TRIPS Agreement, the Parties commit to protect all literary and artistic works 
covered by Article 2 of the Berne Convention, as well the rights of authors and their successors 
(Article 15.8). The protection granted under the Ag reement to computer programs, compilations of 
data, performers, producers of phonograms and broadcasting organizations is almost the same 
than that under the TRIPS Agreement, except for performers.
55 Under the Agreement when a 
performer has consented to the incorporation of his performance in a visual or audiovisual fixation, 
the rights provided by Article 7 (on the minimum level of protection) of the Rome Convention, will 
be considered as exhausted, this means that performers would not have the possibility of 
preventing the use of their performances.  
4.25.  In broadcasting, the Parties further commit to establish between 2004-2009 legal protection 
against unauthorized decryption of an encrypted programme-carrying satellite signals 
                                               
51 The provisions on anti-competitive licensing contracts are identical to Article 40 (paragraphs 1 and 2) 
of the TRIPS Agreement.  
52 Since the Agreement entered into force after 1995. 
53 The provision on national treatment under TRIPS Agreement is also subject to exceptions, but these 
differ to a certain extent from those listed under the Agreement.   
54 In the TRIPS Agreement, Article 15.7 of th e Agreement is reflected in Article 69.  
55 The Parties will protect the rights of performers an d producers of phonograms in accordance with the 
Rome and Geneva Conventions. WT/REG345/1 
 
- 32 - 
  (Article 15.11). Both Parties indicated that in 2004 the unauthorized decryption of encrypted 
programme-carrying satellite signals was already subject to sanctions under their legislations.56  
4.26.  For copyright and related rights, any person acquiring or holding economic rights (a) may 
freely transfer such rights; and (b) shall be able to exercise those rights in its own name and enjoy 
fully the benefits derived from those rights (Article 15.12). The Agreement allows for the same 
period of protection for copyrights57, performers and producers of phonograms (at least 50 years). 
The terms of protection for broadcasting organizations will be those specified in the Parties' 
national legislations (Article 15.13), that is 50 years for both Mexico and Uruguay.58  
4.9.3  Trademarks and well-known marks 4.27.  The period of protection for trademarks and well-known marks is longer under the 
Agreement (10 years instead of seven) (Article 15.18). The Agreement also includes a more 
detailed definition of well-known marks, which requires that the Parties take into account the 
reputation of the trademark in the relevant commercial sector or sector of the public, which is to be established through its use within or outside their territory, as well as through the promotion of 
the trademark (Article 15.16).
59  
4.9.4  Geographical indications 4.28.  The Parties commit to protect each other's geographical indications (GIs), including their 
appellations of origin (Article 15.22). Uruguay reco gnizes the following Mexican GIs (appellation of 
origin
60): "Tequila" and "Mezcal".  
4.9.5  Protection of undisclosed information 4.29.  The provisions on the protection of undisclosed information or secrets reflect to a larger 
extent those in the TRIPS Agreement (Article 39) but also add in some cases new obligations. For 
instance, the Parties require that to qualify for protection a trade secret must be evidenced in documents, electronic or magnetic means, optical discs, microfilms, films or other similar 
instruments. They cannot limit the duration of protection for trade secrets and cannot impede the 
voluntary licensing of trade secrets by imposing excessive or discriminatory conditions on such licenses or conditions that dilute the value of such secrets (Article 15.35). 
4.9.6  Other IPR provisions 
4.30.  Under the Agreement, utility models are protected for at least 10 years, from the date a 
request is received (Article 15.30).  
4.31.  In the area of patents, the Parties have th e right to exclude biological and genetic material 
from patentability (Article 15.23), which is not the case under the TRIPS Agreement (Article 27). 
4.32.  For plant varieties, the Agreement provides for the protection of plant varieties by granting 
protection to the "breeder" of the plant acco rding to the UPOV Convention (Article 15.35).
61 
                                               
56 In the case of Mexico, sanctions are provided in the "Ley Federal Del Derecho de Autor" of 2003 and 
in the case of Uruguay in Law 17.520 of 2002. 
57 The term of protection is the life of the author and at least 50 years after his death. When the term of 
protection of a work, is to be calculat ed on a basis other than the life of a natural person, the term shall be at 
least 50 years from the end of the calendar year of the fi rst authorized publication of the work or, failing such 
authorized publication within 50 years from the making of the work and from the end of the calendar year of making (Article 15.13). 
58 Information provided by the Parties.  
59 The definition does not refer to any type of registration. 
60 According to the WIPO, an appellation of origin is a special type of geographical indication, used for 
products with a specific quality which results exclusively or essentially from the geographical environment in which the products are produced. 
61 The breeder is in general the person who bred , or discovered and developed, a variety (UPOV 
Convention). The TRIPS Agreement does refer to the UPOV Convention and only indicates the regulatory 
instruments that must be used to protect plant varieties (Article 27(b) of the TRIPS Agreement). WT/REG345/1 
 
- 33 - 
  4.10  Competition policy, Monopolies and State Companies 
4.33.  Chapter 14 contains specific provisions on competition policy, designated monopolies and 
State enterprises, which apply to both goods and services. The Parties commit to adopt or maintain measures that prohibit anti-competitive behaviour and to cooperate on issues of law 
enforcement through legal assistance, consultations, and exchange of information, among others. 
The Parties or investor cannot invoke the Agreement's dispute settlement mechanism for any competition issue (Article 14.2).  
4.34.  The Parties can designate a monopoly (i.e. privately owned or government) but must ensure 
that it: (a) does not act in a manner that is inconsistent with the Agreement wherever such a monopoly exercises any governmental authority in connection with the activity in question; (b) undertakes its activities in accordance with commercial considerations; (c) provides 
non-discriminatory treatment to investments, goods or service suppliers of the other Party when 
buying or selling the good or service under a monopoly; and (d) does not engage in anticompetitive practices that affect investments of investors from the other Party in 
non-monopolized markets in its territory (Article 14.3).  
4.35.  They can also maintain or establish State-owned enterprises, but must ensure that they: 
(a) operate in accordance with Chapter 13 on investments wherever they exercise any delegated 
governmental authority and (b) grant non-discriminatory treatment to investments of investors 
from the other Party when selling their goods or services (Article 14.5). WT/REG345/1 
 
- 34 - 
  ANNEX 1 
Table A1.1 List of products under the Ec onomic Complementation Agreement (ACE 55) 
HS 
Chapter Description Number of tariff lines 
Mexico 
(8-digits) Uruguay 
(11-digits)  
38 Miscellaneous chemical products (e.g. Break fluids) 4 1 
40 Rubber and articles thereof 28 14 
45 Cork and articles of cork 3 2 
68 Articles of Asphalt; Fabr icated asbestos fibres 7 9 
69 Ceramic products (e.g. ce ramic ware for other uses) 1 4 
70 Glass and glassware (e.g. safety glass, glass mirrors) 16 12 
83 Miscellaneous articles of base metal (e.g. Padlocks and locks) 2 1 
84 Machinery and mechanical appliances (e.g. air conditioning 
machines, mechanical appliances) 155 114 
85 Electrical machinery and equipment (e.g. Electrical starting 
equipment, signalling, radio receptors) 71 56 
87 Vehicles other than railw ay or tramway rolling 199 84 
90 Optical and precision articles (e.g. measuring instruments, revolution 
counters) 17 23 
91 Clocks and parts thereof 3 1 
94 Cushions; Lamps and parts thereof (e.g. Seats) 1 1 
96 Miscellaneous manufactured articles (e.g. Cigarette lighters) 1 1 
Total 508 323 
 
Source: National authorities.  
Table A1.2 Mexico: Tariff elimination commi tments under the Agreement, including 
preferences under the ACE 55 
Duty Phase-Out 
Period MEX-URY Agreement only MEX-URY including ACE-55 
Number of 
lines % of total 
lines in 
Mexico's 
tariff 
schedule Average 
applied tariff 
overall 
(%) Number 
of lines % of total 
lines in 
Mexico's tariff 
schedule Average 
applied tariff 
overall 
(%) 
MFN Duty Free 
(2004) 600 5.0 15.9 600 5.05 15.9 
2004 10,408 87.5 1.9 10,698 89.97 1.6 
2011    41 0.34 1.4 
2013 31 0.3 1.9 31 0.26 1.4 
Remain dutiable 852a 7.2 521a 4.38 
Total 11,891 100.0 1.9 11,891 100.00 1.4 
 
a Of these lines, 22 are prohibited. Prohibited lines  are excluded from the average calculation but are 
included in the counting. 
 Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. 
 Based on the HS 2002 nomenclature.  Source: WTO estimates based on data prov ided by Mexico and WTO-IDB Database. WT/REG345/1 
 
- 35 - 
  Table A1.3 Uruguay: Tariff elimination co mmitments under the Agreement, including 
preferences under ACE 55 
Duty 
Phase-Out 
Period Liberalization under Agreement only Liberalization under the Agreement and the 
ACE 55  
Number 
of lines % of total lines in 
Uruguay's tariff 
schedule Average 
applied tariff 
overall 
(%) Number 
of lines % of total lines in 
Uruguay's tariff 
schedule Average 
applied tariff 
overall 
(%) 
MFN Duty 
Free 
(2004)  
 
1,351  
 
12.4  
 
9.4   
 
1,351  
 
12.4  
 
9.4 
2004 8,086 74.1 1.0 8,285a 75.9 0.8 
2011    1.0 30b 0.3 0.7 
2013 64 0.6 0.9 64 0.6 0.6 
Remain 
dutiable  
1,409  
12.9  
1,180  
10.8 
Total 10,910 100.0 0.9 10,910 100.0 0.6 
 
a Of these lines, 199 are duty-free under the ACE 55; the rest are duty-free under the Agreement.  b All 30 lines are duty-free under the ACE 55 only.  Note:  For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. 
 Based on the HS 2002 nomenclature.  Source: WTO estimates based on data prov ided by Uruguay and WTO-IDB Database. WT/REG345/1 
 
- 36 - 
  ANNEX 2 
1. Tables A2.1 (Mexico) and A2.2 (Uruguay) present the Parties' tariff elimination schedule overall 
and by type of product (agricultural and non-agricult ural). In the case of Mexico, the share of duty 
free lines went from 5% to 92.6% upon the Agreement's entry into force, and the overall average 
tariff fell to 1.9% from 15.9%. For agricultural goods, average tariff went down to 8.5% from 24.5%, while for non-agricultural goods, it was 1.2% instead of 14.9%. As for the share of 
duty-free tariff lines, it increased from 4% to 77 .2% for agricultural products and from 5.2% to 
94.3% for non-agricultural products. During 2004-2012, the Agreement provided for tariff reductions only. Therefore, at the end of implem entation, in 2013, there were only slight changes 
on the share of duty-free tariff lines. In that year, the share of duty-free lines for imports from 
Uruguay was 92.8% overall (77.2% for agricultural products and 94.6% for non-agricultural products).  
Table A2.1 Mexico: Indicators of MFN tariff ra tes and preferential rates for imports from 
Uruguay 
Origin 
of 
goods Year  ALL PRODUCTS Agricultural products a Non-agricultural products  
Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share 
of duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2004 15.9 16.7 5.0 24.5 25.6 4.0 14.9 15.7 5.2 
Uruguay 2004 1.9 27.0 92.6 8.5 39.1 77.2 1.2 21.8 94.3 
  2005 1.9 26.9 92.6 8.5 39.1 77.2 1.2 21.7 94.3 
  2006 1.9 26.8 92.6 8.5 39.0 77.2 1.2 21.5 94.3 
  2007 1.9 26.6 92.6 8.5 39.0 77.2 1.2 21.3 94.3 
  2008 1.9 26.5 92.6 8.5 39.0 77.2 1.2 21.1 94.3 
  2009 1.9 26.4 92.6 8.5 39.0 77.2 1.2 20.9 94.3 
  2010 1.9 26.2 92.6 8.5 39.0 77.2 1.2 20.8 94.3 
  2011 1.9 26.1 92.6 8.5 39.0 77.2 1.1 20.6 94.3 
  2012 1.9 26.0 92.6 8.5 39.0 77.2 1.1 20.4 94.3 
  2013 1.9 26.8 92.8 8.5 39.0 77.2 1.1 21.3 94.6 
 
a WTO Definition.  Note: Preferences under the Agreement are given as a percentage of the MFN duty, which implies that as 
MFN duties change preferential du ties also do. Since the total number of lines differs across years 
during 2004-2013 (based on the HS 2002 nomenclature), for consistency and comparability purposes all calculations are based on the 2004 MFN duties. 
  For the calculation of averages, sp ecific duties are excluded and the ad valorem  parts of alternate 
rates are included. For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related calculations. 
 Based on the HS 2002 nomenclature. 
 
Source: WTO estimates based on  data provided by Mexico. 
2. For Uruguay, 12.4% of its tariff lines were duty free on an MFN basis in 2004; this share was 
6.5% and 13.3% for agricultural and non-agricultural products, respectively. Upon the Agreement's entry into force, the share of duty-fr ee lines increased to 86.5% and the overall tariff 
fell to 7.6% from 10.8%. For agricultural goods, the share of duty-free tariff lines rose from 6.5% 
to 46.3% and the average tariff went down to 3.1% from 9.7%. For non-agricultural goods, the 
share of duty-free lines was 92.4% instead of 13. 3% and the average tariff was 0.7% instead of 
9.4%. Between 2004 and 2012, there were no tariff eliminations, only tariff reductions on non-
agricultural products. Therefore in 2013, there we re few changes in the share of duty-free lines 
with the overall share increasing to 87.1% (unchanged for agricultural products and 93.1% for non-agricultural products).  WT/REG345/1 
 
- 37 - 
  Table A2.2 Uruguay: Indicators of MFN tari ff rates and preferential rates for imports 
Origin 
of 
goods Year ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2004 9.4 10.8 12.4 9.7 10.3 6.5 9.4 10.8 13.3 
Mexico 2004 1.0 7.6 86.5 3.1 5.9 46.3 0.7 9.4 92.4 
 2005 1.0 7.5 86.5 3.1 5.9 46.3 0.7 9.2 92.4 
 2006 1.0 7.4 86.5 3.1 5.9 46.3 0.7 9.1 92.4 
 2007 1.0 7.4 86.5 3.1 5.9 46.3 0.7 9.0 92.4 
 2008 1.0 7.3 86.5 3.1 5.9 46.3 0.7 8.8 92.4 
 2009 1.0 7.2 86.5 3.1 5.9 46.3 0.7 8.6 92.4 
 2010 1.0 7.1 86.5 3.1 5.9 46.3 0.6 8.5 92.4 
 2011 1.0 7.0 86.5 3.1 5.9 46.3 0.6 8.3 92.4 
 2012 0.9 7.0 86.5 3.1 5.9 46.3 0.6 8.1 92.4 
 2013 0.9 7.2 87.1 3.1 5.9 46.3 0.6 8.7 93.1 
 
a WTO Definition. 
 Note: Preferences under the Agreement are given as a percentage of the MFN duty, this implies that as 
MFN duties change preferential du ties also do. Since the total number of lines differs across years 
during 2004-2013 (based on the HS 2002 nomenclature), for consistency and comparability 
purposes all calculations are based on the 2004 MFN duties. 
 
 For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. 
 Based on the HS 2002 nomenclature.  Source: WTO estimates based on data provided by Uruguay and WTO-IDB. 
3. Table A2.3 shows market access opportunities in Mexico for Uruguay's top 25 goods. These 
products accounted for 56.4% of its world exports during 2001-2003 and covered 45 tariff lines at 
the 8-digit level. Of these lines, only four were already duty free on a MFN basis when the 
Agreement entered into force in 2004. Of the remaining lines, 26 were liberalized immediately. The rest remain dutiable and at least half of them (i.e. 9 lines) refer to dairy products 
(e.g. cheese, milk and cream). 
Table A2.3 Mexico: Market access oppo rtunities for Uruguay's top 25 exports 
Uruguay's top export products in 2001-2003 Access Conditions to Mexico's import 
markets 
MFN (2004) 
Duty-free in 2004 
Remain dutiable HS code (6-digit) and description of the 
product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  No. of tariff 
lines Duty-free 
Dutiable 
020230 Boneless 9.1 25.0   1   1 
510529 Other 6.2 5.0 1 1 1   
100630 Semi-milled or wholly milled rice, 
whether or not polished or glazed 5.1 20.0   2 2   
020130 Boneless 3.8 20.0   1   1 
410712 Grain splits 2.9 13.0   2 2   
110710 Not roasted 2.5 158.0   1   1 
410792 Grain splits 2.5 13.0   1 1   WT/REG345/1 
 
- 38 - 
  Uruguay's top export products in 2001-2003 Access Conditions to Mexico's import 
markets 
MFN (2004) 
Duty-free in 2004 
Remain dutiable HS code (6-digit) and description of the 
product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate (%)  No. of tariff 
lines Duty-free 
Dutiable 
100620 Husked (brown) rice 2.0 20.0   1 1   
040221 Not containing added sugar or other 
sweetening matter 1.9 67.6   2 1 1 
040690 Other cheese 1.9 68.6   7   7 
440399 Other 1.8 13.0   1 1   
240220 Cigarettes containing tobacco 1.8 67.0   1   1 
030379 Other 1.6 30.0   2 2   
410441 Full grains, unsplit; grain splits 1.5 13.0   2 2   
030420 Frozen fillets 1.5 30.0   3 3   
120600 Sunflower seeds, whether or not 
broken. 1.4 0.0 2       
430310 Articles of apparel and clothing 
accessories 1.2 35.0   1 1   
392330 Carboys, bottles, flasks and similar 
articles 1.0 23.0   2 2   
400599 Other 1.0 18.0   1 1   
080510 Oranges 1.0 23.0   1 1 
710812 Other unwrought forms 1.0 0.0 1       
160250 Of bovine animals 0.9 23.0   2 2   
040210 In powder, granules or other solid 
forms, of a fat cont ent, by weight, not 
exceeding 1.5% 0.9 67.6   2 1 1 
410449 Other 0.9 13.0   2 2   
511211 Of a weight not exceeding 200 g/m² 0.9 16.5   2   2 
Total of above 56.4 34.3 4 41 26 15 
 
Note: For the calculation of averages, specific duties are excluded and the ad valorem  parts of alternate 
rates are included. For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related calculations. 
 Based on the HS 2002 nomenclature.  Source: WTO estimates based on data provided  by Mexico, WTO-IDB and UNSD Comtrade.  
4. Table A2.4 shows market access opportunities for Mexico's top 25 exports in the Uruguayan 
market. Mexico's top 25 exports accounted for 46.2% of its global exports during 2001-2003. 
These exports covered 184 tariff lines at the 10-di git level, of which 22 were already duty-free on 
a MFN basis in 2004. Of the remaining lines, 113 became duty-free upon the Agreement's entry 
into force and 49 will continue to be dutiable. More than half (i.e. 38) of the dutiable lines refer to 
vehicles. WT/REG345/1 
 
- 39 - 
  Table A2.4 Uruguay: Market access oppo rtunities for Mexico's top 25 exports 
Mexico's top export products in 2001-2003 Access Conditions to Uruguay's import 
markets 
MFN (2004) 
Duty-free in 2004 
Remain dutiable HS code (6-digit) and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines Duty-free 
Dutiable 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 8.6 0.0 2       
870323* Of a cylinder capacity exceeding 1,500 cc but 
not exceeding 3,000 cc 5.4 23.0   2   2 
852812* Colour 4.0 13.3 1 2 2   
870324* Of a cylinder capacity exceeding 3,000 cc 2.8 23.0   2   2 
854430* Ignition wiring sets and other wiring sets of a 
kind used in vehicles, aircraft or ships 2.7 16.0   1   1 
870431* g.v.w. not exceeding 5 tonnes 2.4 7.5   8   8 
847160* Input or output units, whether or not 
containing storage units in the same housing 2.2 1.9 1 27 27   
847330* Parts and accessories of the machines of 
heading 84.71 1.8 1.0 11 12 12   
852520* Transmission apparatus incorporating 
reception apparatus 1.7 1.9 2 28 28   
940190* Parts 1.4 18.0   7 7   
870829* Other 1.3 8.7   12   12 
840734* Of a cylinder capacity exceeding 1,000 cc 1.1 18.0   2   2 
870421* g.v.w. not exceeding 5 tonnes 1.0 11.3   8   8 
870899* Other 1.0 13.1 1 6   6 
853710* For a voltage not exceeding 1,000 v 1.0 5.2   5 5   
620342 Of cotton 0.9 20.0   2 1 1 
847150* Digital processing units, other than those of 
subheading 8471.41 or 8471.49, whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units 0.9 2.0   5 5   
847180* Other units of automatic data processing 
machines 0.9 2.0   5 5   
851750* Other apparatus, for carrier-current line 
systems or for digital line systems 0.9 1.8 1 11 11   
852721* Combined with sound recording or reproducing 
apparatus 0.8 20.0   2   2 
847141* Comprising in the same housing at least a 
central processing unit and an input and output unit, whether or not combined 0.8 2.0   2 2   
620462 Of cotton 0.8 20.0   2 2   
847130* Portable digital automatic data processing 
machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display 0.8 2.0   4 4   
220300 Beer made from malt. 0.7 20.0   2 2   
852990* Other 0.7 4.8 3 5   5 
Total of above 46.2 5.8 22 162 113 49 
 
* Takes into account tariff line s that benefit from preferenti al access under the ACE 55. 
 Note: For tariff lines subject to TRQs, only the out-of-quota duty is included in the tariff-related 
calculations. 
 Based on the HS 2002 nomenclature.   Source: WTO Estimates based on data provided  by Uruguay, WTO-IDB and UNSD Comtrade.  
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