WT/REG308/M/1  
 
28 July 2014  
(14-4329)  Page: 1/3  
Committee on Regional Trade Agreements 
Seventy-third Session    
 
FREE TRADE AGREEMENT BETWEEN PERU AND MEXICO,  
GOODS AND SERVICES 
NOTE ON THE MEETING OF 23 JUNE 2014 
Chairman: Ambassador Francisco Pirez Gordillo (Uruguay) 
1.1.  The 73rd Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/4299/Rev.1 dated 13 June 2014. 
1.2.  Under Agenda Item B.IV of the session , the CRTA considered the Free Trade Agreement 
between Peru and Mexico, (hereinafter "the Agreement"). 
1.3.  The Chairman said that the Agreement had entered into force on 1 June 2013. It had been 
notified to the WTO by the Parties on 5 June 2013 under Article XXIV:7(a) of the GATT 1994 and 
the Understanding on the Interpretation of  Article XXIV of GATT 1994 as an Agreement 
establishing a free trade area (document WT/REG308/N/1) and under GATS Article V:7(a) as an 
Agreement providing for the liberalization of trade in  services within the meaning of Article V of the 
GATS (document S/C/N/616). The text of the Agreement was available, together with its Annexes, 
on the Parties' official websites. The Factual Presentation on the goods and services aspects 
(document WT/REG308/1 dated 14 April 2014) had b een prepared by the Secretariat on its own 
responsibility in full consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for Regional Trade Ag reements (document WT/L/671). In addition, 
written questions and replies on this Agreemen t had been distributed in document WT/REG308/2 
dated 17 June 2014. He proposed to organize the consideration of the Agreement by first asking the Parties and then other Members to give any general comments and then turn to the specifics 
of the Agreement, using the Factual Presentati on, document WT/REG308/1 to guide the debate. 
They would then go through the questions and replies document. 
1.4.  The representative of Mexico apprecia ted the opportunity to present the Free Trade 
Agreement (FTA) between Mexico and Peru. He than ked the Secretariat for drawing up the factual 
presentation, the delegation of Peru for its work on presenting the review, and the delegations of 
Colombia, Thailand and the European Union for their questions. 
1.5.  He stated that Peru was one of Mexico's strategic trading partners, with a growing share in 
Mexico's total trade. Bilateral trade and invest ment relations were governed by the Free Trade 
Agreement signed on 6 April 2011, which had ente red into force on 1 February 2012 and replaced 
the Economic Complementarity Agreement No. 8 concluded under the LAIA framework in 1987. Its 
aim was to increase bilateral trade and investment flows, taking advantage of the two countries' 
economic buoyancy in the Latin American region to promote the development of their economies, 
for the benefit of both Mexican and Peruvian co nsumers and economic operators. The Agreement 
covered a total tariff of 12,107 products and laid down commitments that afforded legal certainty 
in four main areas: (1) trade in goods; (2) trade in services; (3) investment; and (4) institutional matters and dispute settlement. The Agreement not only provided an opportunity to boost trade 
between both countries but also confirmed the friendly ties and cooperation that had always 
existed between their peoples and hence bore witness to the privileged relationship that united 
both countries amongst Latin American nations. The Agreement had become one of Mexico's most 
important trade instruments and was part of its linkage strategy in the Latin American region. 
Indeed, total bilateral trade had amounted to around US$2.5 billion the preceding year, having 
increased by 26% since 2011, one year before the Agreement had entered into effect. This made WT/REG308/M/1 
 
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  Peru Mexico's sixth largest trading partner in Latin America. Mexico's aggregate investment in Peru 
exceeded US$14 billion. 
1.6.  Both Peru and Mexico were convinced of the benefits of free trade, the opening of new 
markets and integration. The proof of this was that both countries were partners in various trade 
forums, such as the Asia Pacific Economic Cooperation (APEC) forum, the Trans Pacific Partnership 
Agreement (TPP) and the Pacific Alliance. As members of the Pacific Alliance integration mechanism, together with Chile and Colombia, Mexico and Peru had reaffirmed their commitment 
to achieve the main objective of the Alliance, which was to gradually move ahead towards the free 
movement of goods, services, capital and pers ons, and to serve as a platform for policy 
coordination, economic and trade integration and for outreach to the world, with special emphasis on the Asia Pacific region. Mexico reiterated its readiness to expand on any point that might arise 
in this connection. 
1.7.  The representative of Peru said that the Parties' unique relationship had been exceptionally 
dynamic in recent years. They shared deep historical, social and ethnic roots, in addition to great 
natural and cultural wealth. They were megadiverse countries and were the cradle of the most 
ancient civilizations of the Americas. They had al so had similar experiences of transculturation and 
had been major economic and political centres during the colonial period. They had furthermore 
maintained friendly bilateral trade relations since Peru and Mexico became republics in the 19th 
century. Given this common ground, it was no surprise that Mexico and Peru had excellent bilateral relations. In 2013, these ties had been upgraded to a strategic partnership, the strength of which, as underlined by the Presidents of the two countries, was based on a deep connection in 
terms of shared ideas, interests and values. 
1.8.  Trade and investment were not the only areas to benefit from this positive development in 
their relations. They had demonstrated willingness to forge stronger bilateral ties in all fields, on 
the basis of common interest, complementarity and reciprocity. Consequently, they shared 
interests not only in terms of the Free Trade Ag reement  under consideration, but also on a 
multilateral level within the framework of the WTO and on a regional and plurilateral level, for 
example through the Asia Pacific Economic Co operation (APEC) forum, the Latin American 
Integration Association (LAIA) and recently, through initiatives such as the Pacific Alliance, in addition to negotiations under the Trans Pacific Partnership (TPP) Agreement and the Plurilateral 
Agreement on Trade in Services (TISA). 
1.9.  The Agreement had been signed in April 2011 after almost five years of negotiations, and had 
entered into force on 1 February 2012. It had been developed on the basis of Economic Complementarity Agreement (ACE) No. 8, which had been signed in 1987 under LAIA and which 
covered only 20% of bilateral trade between the Parties, and excluded trade in services and 
investment. The FTA was a comprehensive agreement based on the provisions and principles of WTO rules. Peru considered that it met stringent requirements for consistency with multilateral 
obligations on regional trade agreements under th e WTO (Article XXIV of the GATT and Article V of 
the GATS). It contained 19 chapters on disciplines  in areas including trade in goods, trade in 
services, intellectual property rights, and standards. 
1.10.  In goods, according to Peru's statistics, between 2012 (the year in which the FTA had 
entered into force) and 2013, bilateral trade had grown by 11.2%. Exports from Peru to Mexico 
had increased by 21.9%, totalling US$508 million, while imports had risen by 8.6%, reaching US$1.818 billion. This had placed Mexico among the 20 main destinations for Peruvian exports and 
the 10th main market for non-traditional or valu e added exports. In fact, over 50% of Peru's 
exports to Mexico in 2013 were non-traditional, re presenting an increase of 4.7% compared with 
2012. Non-traditional exports in the chemical, textile, metal working, non-metallic mining and 
agricultural sectors, for example, were the most  significant. 57% of Peruvian companies that 
exported to Mexico were micro and small export companies. 
1.11.  In services, the FTA, which was based on a negative list approach, opened up considerable 
and interesting opportunities for their service suppliers, enabling, inter alia, the promotion of value 
added supply of software, contact centres and architectural, logistics, publishing and franchising 
services. WT/REG308/M/1 
 
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  1.12.  Moreover, according to Peru's Private In vestment Promotion Agency, Mexico was the fifth 
largest Latin American source of foreign investme nt received by Peru, representing 2.1% of the 
total stock. The communications sector accounted for 85.4% of Mexican investment in Peru, followed by the mining, financial and construction sectors. The chapter on investment laid down a 
set of rules relating to the treatment and protection of investments between Mexico and Peru, 
which would promote a greater flow of Mexican investment to Peru, enabling the production potential to be fully harnessed. Guarantees were also established to allow for investment by 
Peruvian companies in Mexico, which had already been the case for sectors such as 
manufacturing, finance and insurance, mining, trade and gastronomy. 
1.13.  Peru and Mexico continued to work with Chile and Colombia on developing mechanisms for 
deep integration that would strengthen the gradual regional integration process, with a view to 
encouraging more inclusive, equitable, dynamic and comprehensive development in Latin America. 
This, in turn, would help establish a gateway to other regions, in particular the Asia Pacific. At the 9th Pacific Alliance Summit held the preceding week in Punta Mita, Nayarit, Mexico had taken 
over the pro tempore presidency of the mechanism from Colombia. The Alliance aimed to build, in 
a participatory and consensual manner, an area of deep integration in order to gradually move towards the free movement of goods, services, capital and persons. 
1.14.  Peru hoped that the transparency exercise would contribute to a better understanding of the 
terms of the Agreement and expressed its re adiness to answer any further questions. 
1.15.  The representative of the European Union appreciated the impressive balance? outlined and 
thanked the Secretariat for the documents. He no ted the significant improvement in the level of 
commitments by the Parties in services compared  to their GATS commitments and welcomed this 
positive achievement. The EU had submitted adva nce questions seeking clarifications on some 
provisions on investment, the time-frame envisaged for negotiations on financial services and, in 
particular, the relation between the Agreement and the Pacific Alliance once the latter entered into 
force. He thanked the Parties for their answers and did not have any more questions. 
1.16.  The representative of the United States thanked the Parties for their work in the 
presentations and the Secretariat for the excellent  Factual Presentation. The United States was 
unhappy about the comparatively low level of tariff elimination in agricultural products compared to industrial products. 
1.17.  The representative of Colombia thanked th e Parties for mentioning Colombia's efforts for 
deeper integration in the Region. She apprecia ted their comprehensive answers to Colombia's 
questions on enhanced cumulation, the regulations of the Administrative Commission and the Short Supply Committee. She had no follow-up questions. 
1.18.  The representative of Thailand thanked the Parties for their presentation and for the 
answers to Thailand's questions. He also thanke d the Secretariat for the factual presentation. He 
did not have further questions. 
1.19.  The Chairman said that the consideration of the Goods and Services Aspects of the Free 
Trade Agreement between Peru and Mexico had allowed the Committee to clarify a number of 
questions and the oral discussion of this RTA could be concluded in accordance with paragraph 11 of the Transparency Mechanism. If any delegations wished to ask follow up questions they were 
invited to forward submissions in writing to the Secretariat by 30 June 2014 and Parties were 
asked to submit replies in writing by no later than 14 July 2014. In accordance with paragraph 13 of the Transparency Mechanism all written submissi ons, as well as minutes of this meeting would 
be circulated promptly, in all WTO official languages, and would be made available on the WTO 
website. 
1.20.  The Committee took note of the comments made. 
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