WT/REG349/1  
7 September 2015  
(15-4590)  Page: 1/112  
Committee on Regional Trade Agreements   
FACTUAL PRESENTATION 
FREE TRADE AGREEMENT BETWEEN MEXICO AND CENTRAL AMERICA - COSTA RICA, 
EL SALVADOR, GUATEMALA, HONDURAS, AND NICARAGUA  
(GOODS AND SERVICES) 
Report by the Secretariat 
This report, prepared for the considerat ion of the Free Trade Agreement between 
Mexico and Central America - Costa Rica, El Salvador, Guatemala, Honduras, and 
Nicaragua has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties. The factual presentation reproduces as closely as possible the terminology used in the Agreement and in the comments provided and 
does not imply official endorsement or acceptance by the Secretariat of such 
terminology. 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) and thus does not imply any value judgement by the 
Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to 
Ms Silvia Avila Seifert (Tel.: +41 22 739 5064). Any statistical questions arising from 
this report may be addressed to Ms Rowena Cabos (tel: +41 22 739 5185). 
 WT/REG349/1 
 
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  TABLE OF CONTENTS 
 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 5  
1.1   Overview .................................................................................................................. 5  
1.2   Merchand ise trade ..................................................................................................... 6  
1.2.1   Mexico - Central America ......................................................................................... 6  
1.2.2   Costa Rica-Mexico ................................................................................................... 8  
1.2.3   El Salvador-Mexico .................................................................................................. 8  
1.2.4   Guatem ala-Mexico .................................................................................................. 8  
1.2.5   Hondur as-Mexic o .................................................................................................... 9  
1.2.6   Nicaragua-Mexico ................................................................................................... 9  
1.3   Trade in servic es and inve stment ................................................................................ 11 
2   CHARACTERISTIC ELEMEN TS OF THE AG REEMENT .................................................... 17  
2.1   Background  Information ............................................................................................ 17 
3   PROVISIONS ON TRADE IN GOODS ........................................................................... 18  
3.1   Import duties and charges,  and quantitative  restrict ions ................................................ 18 
3.1.1   Genera l provisions ................................................................................................. 18 
3.1.2   Liberalization of  trade and ta riff lines ........................................................................ 19 
3.1.2.1   Mexico ............................................................................................................... 19 
3.1.2.2   Costa Rica .......................................................................................................... 21 
3.1.2.3   El Salvador ........................................................................................................ 22 
3.1.2.4   Guatem ala ......................................................................................................... 22 
3.1.2.5   Honduras ........................................................................................................... 23 
3.1.2.6   Nicaragua .......................................................................................................... 23 
3.1.3   Liberali zation schedule............................................................................................ 24 
3.1.3.1   Mexico ............................................................................................................... 24 
3.1.3.2   Costa Rica .......................................................................................................... 27 
3.1.3.3   El Salvador ........................................................................................................ 28 
3.1.3.4   Guatem ala ......................................................................................................... 30 
3.1.3.5   Honduras ........................................................................................................... 31 
3.1.3.6   Nicaragua .......................................................................................................... 32 
3.1.4   Tariff rate quotas ................................................................................................... 33 
3.1.4.1   Mexico  - Costa Rica ............................................................................................. 34 
3.1.4.2   Mexico - El Salvador ............................................................................................ 34 
3.1.4.3   Mexico - Guatemala ............................................................................................. 34 
3.1.4.4   Mexico  - Hond uras .............................................................................................. 34 
3.1.4.5   Mexico - Nicaragua .............................................................................................. 34 
3.2   Rules of origin .......................................................................................................... 35 
3.3   Export duties and charges,  and quantitative  restrictions ................................................. 38 
3.4   Regulatory provisions on trade in goods ....................................................................... 38 WT/REG349/1 
 
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  3.4.1   Standards ............................................................................................................. 38 
3.4.1.1   Sanitary and phytosanitary measures .................................................................... 38 
3.4.1.2   Technical barriers to trade .................................................................................... 39 
3.4.2   Safeguard mechanisms ........................................................................................... 40 
3.4.2.1   Global safeguards ............................................................................................... 40 
3.4.2.2   Bilateral safeguards ............................................................................................. 41 
3.4.2.3   Special safeguards .............................................................................................. 41 
3.4.2.4   Balance of payments safeguards ........................................................................... 42 
3.4.3   Anti-dumping and countervailing measures ............................................................... 42 
3.4.4   Subsidie s and State-aid .......................................................................................... 42 
3.4.5   Customs-re lated procedures .................................................................................... 42 
3.4.5.1   Trade Facilitation ................................................................................................ 42 
3.4.6   Other regulations ................................................................................................... 43 
3.5   Sector-specific provis ions on trad e in goods ................................................................. 43 
3.5.1   Agriculture ............................................................................................................ 43 
4   PROVISIONS ON TRADE IN SERVICES ....................................................................... 43  
4.1   Scope and definitions ................................................................................................ 43 
4.2   Denial of benefits ..................................................................................................... 44 
4.3   General provisions on trade in services ........................................................................ 45 
4.3.1   Mark et acce ss ....................................................................................................... 45 
4.3.2   National treatment and MFN .................................................................................... 45 
4.3.3   Local presence ...................................................................................................... 45 
4.3.4   Performanc e requirements ...................................................................................... 45 
4.3.5   Senior management and boards of  direct ors .............................................................. 46 
4.3.6   Movement of  natural persons .................................................................................. 46 
4.3.7   Other measur es on inve stment ................................................................................ 47 
4.4   Liberalization commitments ........................................................................................ 48 
4.4.1   Mexico ................................................................................................................ . 48 
4.4.1.1   Horizont al commit ments ...................................................................................... 48 
4.4.1.2   Sector-spe cific commitments ................................................................................ 49 
4.4.2   Co sta Ri ca ............................................................................................................  55 
4.4.2.1   Horizont al commit ments ...................................................................................... 55 
4.4.2.2   Sector-spe cific commitments ................................................................................ 55 
4.4.3   El Salvad or ...........................................................................................................  60 
4.4.3.1   Horizont al commit ments ...................................................................................... 60 
4.4.3.2   Sector-spe cific commitments ................................................................................ 60 
4.4.4   Honduras .............................................................................................................. 64 
4.4.4.1   Horizont al commit ments ...................................................................................... 64 
4.4.4.2   Sector-spe cific commitments ................................................................................ 64 
4.4.5   Guatemala ............................................................................................................ 68 WT/REG349/1 
 
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  4.4.5.1   Horizont al commit ments ...................................................................................... 68 
4.4.5.2   Sector-spe cific commitments ................................................................................ 69 
4.4.6   Nicaragua .............................................................................................................  72 
4.4.6.1   Horizont al commit ments ...................................................................................... 72 
4.4.6.2   Sector-spe cific commitments ................................................................................ 73 
4.5   Regulatory provisions ................................................................................................ 76 
4.5.1   Domestic regulation ............................................................................................... 76 
4.5.2   Recognition ........................................................................................................... 77 
4.5.3   Subsidies .............................................................................................................. 77 
4.5.4   Safeguards ........................................................................................................... 77 
4.6   Sector specific provis ions on trade in services ............................................................... 77 
4.6.1   Road Transport ...................................................................................................... 77 
4.6.2   Telecommunication Services .................................................................................... 78 
4.6.3   Electronic Commerce .............................................................................................. 78 
4.6.4   Financial Services .................................................................................................. 79 
5   GENERAL PROVISIONS  OF THE AGREEMENT ............................................................. 79  
5.1   Tran sparency ........................................................................................................... 79 
5.2   Current payments and capital movements .................................................................... 80 
5.3   Exceptions ............................................................................................................... 80 
5.4   Accession and Withdrawal .......................................................................................... 81 
5.5   Institutio nal framework ............................................................................................. 81 
5.6   Disput e settlement ................................................................................................... 82 
5.7   Relationship with other agr eements concluded by the Parties .......................................... 85 
5.8   Government  procurement .......................................................................................... 88 
5.9   Intellectual property rights ......................................................................................... 89 
ANNEX 1 ....................................................................................................................... . 91 
ANNEX 2 ...................................................................................................................... 109 
ANNEX 3 ...................................................................................................................... 111 
 WT/REG349/1 
 
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Key Facts 
Parties to the Agreement: Central America1 and Mexico 
Date of signature of the Free trade 
Agreement  11 November 2011 
Date of entry into force: 
Mexico - El Salvador  
Mexico - Nicaragua 
Mexico - Honduras 
Mexico - Costa Rica 
Mexico – Guatemala  
1 September 2012 
1 September 2012 
1 January 2013 
1 July 2013 
1 September 2013 
Date of notification:  20 January 2014 
Full implementation of commitments: 
Mexico - El Salvador  
Mexico - Nicaragua 
Mexico - Honduras 
Mexico - Costa Rica 
Mexico – Guatemala   
2021 
2012  
2022 
2020 
2015/2022  
1  TRADE ENVIRONMENT2 
1.1  Overview 
1.1.  The Free Trade Agreement (the Agreement) between Mexico and Costa Rica, El Salvador, 
Guatemala, Honduras and Nicaragua is the 13th regional trade agreement notified by Mexico; the 
11th notified by Costa Rica; the 10th notified by El Salvador; and the ninth notified by Guatemala, 
Honduras and Nicaragua. As of entry into force of  the Agreement, except for transitory provisions 
set up in Article 21.8, the following agreements as well as the respective annexes, appendices, protocols and decisions signed under these instruments became null and void: the Agreement 
between the United Mexican States and the Repu blic of Costa Rica; the Free Trade Agreement 
between the United Mexican States and the Republics of El Salvador, Guatemala and Honduras  (Nothern Triangle); and the Free Trade Agreement between the United Mexican States and the Republic of Nicaragua. The Parties indicated that  the purpose of making a single treaty between 
Mexico and Central America was to achieve conver gence of the three existing agreements in a 
single instrument so as to strengthen trade relations by harmonizing trade provisions, rules of origin, cooperation and the extension of th e agreement. Thus enhancing the region's 
competitiveness, promoting chains of production processes and facilitating trade. 
1.2.  In 2012, the GDP of Mexico (120.8 million inhabitants) was estimated at US$1,178 billion. It 
was ranked 11
th for exports and ninth for imports globally (total exports of goods amounting to 
US$ 370.6 billion and imports to US$380.5 billion). The majority of Mexico's exports and imports 
consist of manufactures (72.7% and 78.2%, respec tively) followed by fuels and mining products 
(17.8% and 16.6%, respectively). As regards trade in services, Mexico was 26th among exporters 
(US$16,146 million) and 21st among importers (US$26,540 million). The average trade/GDP ratio 
in 2010-2012 was 64.0. 
1.3.  Among the Central American economies, in 2012, the GDP of Costa Rica (4.8 million 
inhabitants) was estimated at US$45.1 billion. It was ranked 61st for exports and 59th for imports 
globally (total exports of goods amounting to US $11.5 billion and imports to US$17.6 billion). With 
a population of 6.3 million, El Salvador's GDP was estimated at US$23.9 billion and it was ranked 85
th in global exports and 73rd in imports (total exports of goods amounting to US$5.3 billion and 
imports to US$10.3 billion). The GDP of Guatemala (15.1 million inhabitants) was estimated at 
                                               
1 Costa Rica, El Salvador, Guatem ala, Honduras and Nicaragua. 
2 Unless otherwise indicated, data  in this section are based on the WTO's Trade Profiles and UNSD 
Comtrade. WT/REG349/1 
 
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  US$50.2 billion and it was ranked 66th in global exports and 60th in imports (total exports and 
imports of respectively US$10.0 billion and US$17. 0 billion). Honduras had a population of 
7.9 million and a GDP of US $18.4 billion. It ranked 74th in global exports and 70th in imports (total 
exports of US$7.9 billion and impo rts of US$11.2 billion). Nicaragua (population of 6 million) was 
the smallest economy with a GDP of US$10.5 billion. It was ranked 99th in global exports and 98th 
in imports (total exports of goods of US $2.7 billion and import s of US$5.9 billion). 
1.4.  The majority of exports from Costa Rica (60.9%), El Salvador (70.3%), Guatemala (60.6%) 
and Honduras (57.6%) consisted of manufactured goods, while exports from Nicaragua (76.7%) 
are dominated by agricultural products. Imports are dominated by manufactured products, (72.5% for Costa Rica, 61.7% for El Salvador, 71.8% for Guatemala, 59.6% for Honduras and 59.1% for Nicaragua).  
1.5.  As regards trade in services, Costa Rica was 61
st among exporters (US$5,453 million) and 
59th among importers (US$1,996 million) followed by Guatemala (ranked 72nd for exports at 
US$2,253 million and 76th for imports at US$2,358 million), El Salvador (ranked 87th in exports at 
US$1,258 million and 100th for imports at US$1,248 million), Honduras, ranked at 95th for exports 
and imports (US$1,029 million and US$1,479 million, respectively) and Nicaragua (ranked at 111th 
for exports at US$625 million and 114th for imports at US$874 million). 
1.6.  The average trade to GDP ratio in 2010-2012 was 79.1 for Costa Rica, 72.5 for El Salvador, 
62.5 for Guatemala, and 117.7 for Honduras; the average trade to GDP ratio during 2009-11 for Nicaragua was 117.7. 
1.2  Merchandise trade 
1.2.1  Mexico - Central America 
1.7.   In 2012, Mexico's exports to and imports from Central America represented 1.28% and 
1.21%, respectively, of its total exports and imports, making Central America the seventh largest 
destination for Mexico's exports and the tenth largest source of imports.
3 Central America's 
exports to and imports from Mexico represented 3.31% and 8.14%, respectively, of its total exports and imports, placing Mexico in seventh and second position as a destination for and source 
of its exports and imports. 
1.8.  Charts 1.1a and 1.1b show recent trends  in trade between Mexico and Central America and 
the world. During the period examined (2000-2012), Mexico's global trade and its trade with Central America have increased in parallel showing a surplus both globally and with 
Central America. Trade between Mexico and Central America increased mainly with Costa Rica, 
Guatemala and, to a lesser extent, with Nicaragua. For Central America, growth in imports exceeded that of exports, increasing each Cent ral American country' global and bilateral trade 
deficits. However, Costa Rica, Honduras and Nicaragua's global exports show sustained growth 
since 2009. 
 
                                               
3 In 2012, Mexico's main export markets were: the Un ited States (77.8%), the European Union (5.9%), 
Canada (2.9%), China (1.5%) and Brazil (1.5%). The ma in sources of its imports were: the United States 
(50.1%), China (15.4%), the European Union (11.0% ), Japan (4.8%) the Republic of Korea (3.6%). WT/REG349/1 
 
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  Chart 1.1a Mexico, bilateral trade with Ce ntral America and trade with world, 2000-2012 
0246810
050100150200250300350400
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Mexico trade with Central America and world, 
2000-2012 
(US$ billion) Nicaragua
Honduras
Guatemala
El Salvador
Costa Rica
Total exports (left axis)
Total imports (left axis)
 
Chart 1.1b Central America, bilateral trade wi th Mexico and trade with world, 2000 2012 
02468101214161820
0.000.200.400.600.801.001.201.40
2000 2002 2004 2006 2008 2010 20121. Costa Rica trade with Mexico and world, 
2000-2012
(US$ Billion)
024681012
0.000.100.200.300.400.500.600.700.800.901.00
2000 2002 2004 2006 2008 2010 20122. El Salvador trade with Mexico and world,
2000-2012
(US$ Billion)
024681012141618
0.000.501.001.502.002.50
2000 2002 2004 2006 2008 2010 20123. Guatemala trade with Mexico and world,
2000-2012 
US$ Billion)
012345678910
0.000.100.200.300.400.500.600.70
2000 2002 2004 2006 2008 2010 20124. Honduras trade with Mexico and world,
2000-2012
(US$ Billion)
01234567
0.000.100.200.300.400.50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20125. Nicaragua trade with Mexico and world,
2000-2012
(US$ Billion)
Export to Mexico Import from Mexico
Total exports (right axis) Total imports (right axis) 
Note: Mirror data used for bilateral trade of Honduras for 2008. 
Source: UNSD, Comtrade da tabase, WTO-IDB and IFS. WT/REG349/1 
 
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  1.2.2  Costa Rica-Mexico 
1.9.  Trade between Costa Rica and Mexico amo unted to an annual average of US$ 3,764 million 
during 2010-2012. In 2012, Costa Rica's exports to Mexico represented 2.8% while imports represented 6.5% of its total exports and imports, making Mexico the ninth largest destination for 
Costa Rica's exports and the forth source of its imports.
4 Mexico's exports to and imports from 
Costa Rica represented 0.3% and 0.9%, respectively, of its total exports and imports, placing Costa Rica in 17
th and 11th position as a destination for and source of its exports and imports. 
1.10.  Chart 1.2b below provides a breakdown of bilateral trade between the Parties by product 
and of their trade at the global level over the period 2010-2012 by HS Section. Five of Costa Rica's major exports at the global level (machinery, vegetables, optical, photographic equipment, prepared foods and chemicals) accounted for 75% of its total exports of which machinery 
accounted for 88% of total imports from Costa Rica by Mexico. Chemicals accounted for another 
6%. Five export categories (machinery, vehicles, minerals, base metals and optical, photographic 
equipment) accounted for 78% of Mexico's total exports; two of these, machinery and base metals 
made up 24% and 12%, respectively, of Costa Rica's imports from Mexico and chemicals, plastics 
and prepared foods accounted for another 17%, 12% and 8%, respectively.  
1.2.3  El Salvador-Mexico 
1.11.  Trade between El Salvador and Mexico am ounted to an annual average of US$ 770 million 
during 2009-2011. In 2012, El Salvador's exports to Mexico represented 1.6% while imports represented 6.8% of its total exports and imports,  making Mexico the eighth largest destination 
for El Salvador's exports and the third source of its imports.
5 Mexico's exports to and imports from 
El Salvador represented 0.2% and 0.03%, respecti vely, of its total exports and imports, placing 
El Salvador in 24th and 49th position as a destination for and source of its exports and imports. 
1.12.  Chart 1.2a below provides a breakdown of bilateral trade between the Parties by product 
and of their trade at the global level over the period 2009-2011 by HS Section. Five of 
El Salvador's major exports at the global level (textiles, prepared foods, machinery, wood pulp and chemicals) accounted for 74% of its total exports of which textiles, prepared foods and machinery 
a c c o u n t e d  f o r  7 3 %  o f  t o t a l  i m p o r t s  f r o m  E l  S a l v a d o r  b y  M e x i c o  a n d  w o o d  p u l p  a c c o u n t e d  f o r  
another 6%. Five export categories (machinery, vehicles, minerals, base metals and optical, 
photographic equipment) accounted for 77% Mexico's total exports; two of these, namely machinery and minerals made up 16% and 12%, respectively, of El Salvador's imports from 
Mexico and chemicals, textiles and prepared foods accounted for another 21%, 11% and 10%, 
respectively. 
1.2.4  Guatemala-Mexico 
1.13.  Trade between Guatemala and Mexico amo unted to an annual average of US$ 2,271 million 
during 2010-2012. In 2012, Guatemala's exports to Mexico represented 5.4% while imports represented 11.3% of its total exports and imports, making Mexico the fifth largest destination for 
Guatemala's exports and the second source of its imports.
6 Mexico's exports to and imports from 
Guatemala represented 0.5% and 0.2%, respectively, of its total exports and imports, placing Guatemala in 12
th and 26th position as a destination for and source of its exports and imports. 
1.14.  Chart 1.2b below provides a breakdown of bilateral trade between the Parties by product 
and of their trade at the global level over the period 2010-2012 by HS Section. Five of 
                                               
4 In 2012, Costa Rica's main export markets were: the United States (38.3%), the 
European Union (17.7%), Panama (5.2%), Hong Kong, China (4.7%) and Nicaragua (4.5%). The main sources 
of its imports were: the United States (51.9%), China 7.9%), the European Union (7.0%), Mexico (6.5%) and Japan (3.1%). 
5 In 2012, El Salvador's main export markets were : the United States (46.6%), Honduras (14.3%), 
Guatemala (13.4%), Nicaragua (6.0%) and the European Union (4.0%). The main sources of its imports were: 
the United States (37.9%), Guatemala (9.7%), Mexico (6.8%), China (5.9%) and th e European Union (5.5%).  
6 In 2012, Guatemala's main export markets were: th e United States (41.0%), El Salvador (11.0%), 
Honduras (7.9%), the European Union (6.5%) and Mexi co (5.4%). The main sources of its imports were: 
the United States (38.1%), Mexico (11.3%), China (7.5%), the European Union (6.4%) and El Salvador (4.6%). WT/REG349/1 
 
- 9 - 
 
 
  Guatemala's major exports at the global level (vegetable products, prepared foods, textiles, 
minerals and chemicals) accounted for 76% of its total exports of which prepared foods and 
textiles accounted for 33% of total imports from Guatemala by Mexico. Animal or vegetable fats and oils, ranking 8
th among Guatemala's major exports is the major import by Mexico, accounting 
for 32%. Five export categories (machinery, vehicles, minerals, base metals and optical, 
photographic equipment) accounted for 78% Mexico's total exports; two of these, namely machinery and base metals made up 16% and 14 %, respectively, of Guatemala's imports from 
Mexico and chemicals accounted for another 26%. 
1.2.5  Honduras-Mexico 1.15.  Trade between Honduras and Mexico amo unted to an annual average of US$ 923 million 
during 2010-2012. In 2012, Honduras' exports to Mexico represented 2.4% while imports 
represented 7.7% of its total exports and imports, making Mexico the seventh largest destination 
for Honduras exports and the third source of its imports.
7 Mexico's exports to and imports from 
Honduras represented 0.2% and 0.1%, respectively, of its total exports and imports, placing 
Honduras in 24th and 29th position as a destination for and source of its exports and imports. 
1.16.  Chart 1.2b below provides a breakdown of bilateral trade between the Parties by product 
and of their trade at the global level over the period 2010-2012 by HS Section. Five of Honduras' 
major exports at the global level (vegetables, machinery, prepared foods, mineral products and 
live animals) accounted for 69% of its total exports of which machinery and animal products accounted for 21% of total imports from Honduras by Mexico. Five export categories (machinery, vehicles, minerals, base metals and optical, photographic equipment) accounted for 78% Mexico's 
total exports; two of these, namely machin ery and base metals made up 25% and 9%, 
respectively, of Honduras' imports from Mexico.  
1.2.6  Nicaragua-Mexico 
1.17.  Trade between Nicaragua and Mexico amo unted to an annual average of US$ 450 million 
during 2009-2011. In 2012, Nicaragua's exports to Mexico represented 2.6% while imports represented 7.4% of its total exports and imports,  making Mexico the eighth largest destination 
for Nicaragua exports and the sixth source of its imports.
8 Mexico's exports to and imports from 
Nicaragua represented 0.2% and 0.04%, respectively, of its total exports and imports, placing Nicaragua in 23
rd and 42nd position as a destination for and source of its exports and imports. 
1.18.  Chart 1.2a below provides a breakdown of bilateral trade between the Parties by product 
and of their trade at the global level over the period 2009-2011 by HS Section. Five of Nicaragua's 
major exports at the global level (animal products, vegetables, prepared foods, natural and cultured pearls and animal or vegetable fats and oils) accounted for 92% of its total exports of 
which vegetables, prepared foods and animal products accounted for 50% of total imports from 
Nicaragua by Mexico. Five export categories (m achinery, vehicles, minerals, base metals and 
optical, photographic equipment) accounted for 77% Mexico's total exports; two of these, namely 
machinery and base metals minerals and made up 22%, and 11%, respectively, of Nicaragua's 
imports from Mexico. 
 
                                               
7 In 2012, Honduras' main export markets were: the United States (46.5%), the European Union 
(25.8%), El Salvador (4.4%), Guat emala (3.7%), and Nicara gua (3.0%). The main sources of its imports 
were: the United States (40.9%), China (8.9%), Mexico (7.7%), Guatemala (7.0%) and the European Union (5.7%). 
8 In 2012, Nicaragua's main export markets were: th e United States (29.9%), Venezuela, Bolivarian 
Rep. of (16.5%), Canada (11.8%), the European Union (10.7%) and El Salvador (9.1%). The main sources of 
its imports were: the United States (18.0%), Venezu ela, Bolivarian Rep. of (16.5%), China (9.5%), 
Curaçao (9.3%) and Costa Rica (7.8%). WT/REG349/1 
 
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  Chart 1.2a Mexico, El Salvador, Nicaragua: product composition of merchandise trade, 
annual average (2009-2011) 
Total: El Salvador: US$ 96 million
Nicaragua: US$ 126 million Total: US$ 296 billion Total: El Salvador: US$ 4.6 billion
Nicaragua: US$ 1.8 billion
Total: US$ 293 billionMexico's imports from
El Salvador and Nicaragua (%)Mexico's global 
imports (%)El Salvador and Nicaragua's 
global exports (%)
El Salvador and Nicaragua's 
imports from Mexico (%)El Salvador and Nicaragua's 
global imports (%)Mexico's global 
exports (%)
Total: El Salvador: US$ 8.6 billion
Nicaragua: US$ 4.2 billionTotal: El Salvador: US$ 674 million
Nicaragua: US$ 324 million50
1676516 31
24179811
El Salvador Nicaragua
38
988828
37
17155322
21
16
1211103128
22
1110820 El Sal vadorNicar agua
17
15
13
1283623
17
159631Nicar agua
El Sal vador41
149552534
29141329Nicaragua
El Sa lvador 
 
Source: UNSD, Comtrade database. WT/REG349/1 
 
- 11 - 
 
 
  Chart 1.2b Mexico, Costa Rica, Guatem ala, Honduras: product composition of 
merchandise trade, annual average (2010-2012) 
Total: Costa Rica: US$ 2,604 million
Guatemala: US$ 548 million
Honduras: US$ 323 millionTotal: US$ 341 billionTotal: Costa Rica: US$ 10.2 billion
Guatemala: US$ 9.6 billion
Honduras:US$ 3.9 billion
Total: US$ 340 billionMexico's imports from
Costa Rica, Guatemala, Honduras (%)Mexico's global 
imports (%)Costa Rica, Guatemala, 
Honduras' global exports (%)
Costa Rica, Guatemala and 
Honduras' imports from Mexico (%)Costa Rica, Guatemala and 
Honduras' global imports (%)Mexico's global 
exports (%)
Total: Costa Rica: US$ 17 billion
Guatemala: US$ 16 billion
Honduras: US$ 8 billionTotal: Costa Rica: US$ 1.1 billion
Guatemala: US$ 1.8 billion
Honduras: US$ 0.6 billion8866 29
222011315 32 
30 16 5 4 12 
Guat emalaHonduras
38
998828
35
19165322
24
17
121282826
16
1410102525
21
139923GuatemalaHonduras
28
13
10873320
16
13873624
14
1410632Hond uras
Guate mala26
2212962423
17
1512924
39
987731Honduras
Guatemala
Costa 
RicaCosta 
Rica
Costa 
RicaCosta 
Rica
 
Source: UNSD, Comtrade database. 
1.3  Trade in services and investment 
1.19.  Charts 1.3 (2001-2013) and 1.5 (2000-2012); and Charts 1.4 and 1.6 (2000-2012, except 
Costa Rica 2000-2013) below show global trade in services and foreign direct investment (FDI) for the Parties. During this period, Mexico registered a deficit in its global trade in services that has 
increased but with important fluctuations during  the period examined. Its principal exports and 
imports were travel-related, insurance and transport services at the beginning of the period. Its main exports were travel-related, insurance and royalties and licence fees, and its main imports 
were transportation, travel-related and insurance services, at the end of period.  
1.20.  While Costa Rica has had a growing surplus in  its global trade in services during the period 
examined, most of the other Central American ec onomies have maintained deficits during the 
period; El Salvador moved from a deficit to a sma ll surplus by the end of the period. Receipts from 
transport and travel related services are import ant for all Central American economies, while 
communication services playing an important role as well. Costa Rica has shown an increase in recent years in receipts from computer and in formation services and other business services. 
Expenditure on services was mainly in transportation and travel services. WT/REG349/1 
 
- 12 - 
 
  Chart 1.3 Mexico, total trade in commercial services with world, 2000-2012 
051015202530
2001 2003 2005 2007 2009 2011 2013
Transportation Travel Communications
Construction Insurance Financial
Computer and information Royalties and licence fees Personal, cultural, and recreational
Other business servicesExports Imports
US$ billion
05101520253035
2001 2003 2005 2007 2009 2011 2013US$ billion
 
Notes: No trade data for Construction, and for Computer and information (2000-2012). No import data for 
Royalties and licence fees (2007-2012). No export data for Financial (2000-2012), Royalties and licence fees, and for other business services (2005-2012).  
Source: WTO Statistics database. WT/REG349/1 
 
- 13 - 
 
 
  Chart 1.4 Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua): 
Total trade in commercial services with world 
Exports ImportsUS$ billionCosta Rica
El Salvador
US$ billionUS$ billion
US$ billion
Guatemala
US$ billion
US$ billion
Honduras
Nicaragua
US$ billion
US$ billionUS$ billion
US$ billion
0.02.04.06.0
2000
20012002200320042005
2006
200720082009201020112012
20130.02.04.06.0
2000
2001
20022003
2004
20052006
2007
2008
2009
20102011
2012
2013
0.00.51.01.52.0
2000 2002 2004 2006 2008 2010 20120.00.51.01.52.0
2000 2002 2004 2006 2008 2010 2012
0.01.02.03.0
2000 2002 2004 2006 2008 2010 20120.01.02.03.0
2000 2002 2004 2006 2008 2010 2012
0.00.51.01.52.0
2000 2002 2004 2006 2008 2010 20120.00.51.01.52.0
2000 2002 2004 2006 2008 2010 2012
0.00.20.40.60.81.0
2 0 0 02 0 0 22 0 0 42 0 0 62 0 0 82 0 1 02 0 1 20.00.20.40.60.81.0
2000 2002 2004 2006 2008 2010 2012  
Note: 
Costa Rica - no trade for Construction (2000-2013); no exports for Insurance (2000-2013); Royalties and licence fees (2006-2007); and for Personal, cultural and recreational (2000). WT/REG349/1 
 
- 14 - 
 
  El Salvador - no export data for Computer and information (2005, 2007); and for Personal, cultural, and 
recreational (2003, 2005-2008, 2011-2012). 
Guatemala - no trade data for Royalties and licence fees (2000-2003); no export data for Construction (2000, 
2004-2005, 2007-2008); and for Personal, cultural, and recreational (2000, 2006-2009). No import data for Construction (2004-2005, 2007-2008, 2012). 
Honduras - no export data for Construction (2000-2002, 2006-2012), Computer and information (2000-2002), 
Royalties and licence fees (2004-2012), and Person al, cultural, and recreational (2000-2002, 2008). 
No import data for Construction (2006-2009). 
Nicaragua - no trade data for Construction and for Co mputer and information (2000-2012). No export data for 
Financial; Computer and information; Royalties and licence fees; and for Personal cultural and Recreational (2000-2012); other business services (2000-2007). No import data for Financial (2000-2005); Royalties and licence fees and Personal, cultural and recreational (2000-2007).  
Source: WTO Statistics database and Central Bank of Costa Rica (2010-2013). 
1.21.  Charts 1.5, 1.6 contain data on FDI. All the Parties are net recipients of FDI and most of 
them showed a sharp increase in net inward investment stocks during the period. No data was 
available on Nicaragua's outward FDI stocks or flows.  
Chart 1.5 Mexico: FDI stock and flow with world, 2000-2012 
050100150200250300350
2000 2002 2004 2006 2008 2010 2012Mexico FDI stock with world,
2000-2012
(US$ billion) 
Outward
Inward
0510152025303540
2000 2002 2004 2006 2008 2010 2012Mexico FDI flow with world,
2000-2012
(US$ billion) 
Outward
Inward
Source: UNCTAD. WT/REG349/1 
 
- 15 - 
 
 
  Chart 1.6 Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua): 
FDI stock and flow with world 
-0.50.00.51.01.52.02.53.0
2000
20012002
2003
2004200520062007200820092010201120122013US$ Billionsinward
outwardFDI FLOW FDI STOCK
05101520
2000
2001
2002200320042005
2006
2007200820092010
2011
20122013US$ Billionsinward
outwardCosta Rica
0246810
2000 2002 2004 2006 2008 2010 2012US$ Billionsinward
outwardEl Salvador
-0.50.00.51.01.52.0
2000 2002 2004 2006 2008 2010 2012US$ Billionsinward
outward
0246810
2000 2002 2004 2006 2008 2010 2012US$ Billionsinward
outwardGuatemala
0246810
2000 2002 2004 2006 2008 2010 2012US$ Billionsinward
outwardHonduras
01234567
2000 2002 2004 2006 2008 2010 2012US$ BillionsinwardNicaragua0.00.51.01.5
2000 2002 2004 2006 2008 2010 2012US$ Billionsinward
outward
‐0.20.00.20.40.60.81.01.2
2000 2002 2004 2006 2008 2010 2012US$ Billionsinward
outward
0.00.20.40.60.81.01.2
2000 2002 2004 2006 2008 2010 2012US$ Billionsinward
 
Note: No data available on outward flow for El Salvador (2009-2012), outward stock for Honduras (2000-
2003), and outward stock and flow for Nicaragua (2000-2012). 
Source: UNCTAD and Central Bank of Costa Rica (2010-2013). WT/REG349/1 
 
- 16 - 
 
  1.22.  Bilateral investment data are only available for some of the Parties. Table 1.1 shows inward 
investment flows into Mexico from Central America in 2009-2013. Costa Rica and Guatemala were the largest sources though inflows from Guatemal a were negative in 2013. Table 1.2 shows that 
the stock of investment by Mexico in Costa Rica and El Salvador, the two countries for which data 
are available, reached almost US$ 1billion in 2012, still relatively small compared to Mexico's 
overall outward investment. Table 1.3 shows inward investment flows into Honduras from Mexico and world. FDI flows from Mexico show a steady increase but not as much as world investment 
flows. However, Mexico's share of  inward FDI flows in Honduras is  roughly 20% over the period.  
Table 1.1 Mexico's foreign direct inve stment from world and Central America  
US$ million 
Year Inward Flows 
Partners World 
Costa Rica 
El Salvador 
Guatemala 
Honduras 
Nicaragua 
2009 17,330.88 27.19 0.31 5.18 0.14 0.005 
2010 23,352.83 9.67 1.41 15.59 0.27 0.004 
2011 23,354.43 46.74 0.02 14.38 2.94 0.042 
2012 17,628.27 24.16 .. 7.55 0.55 0.002 
2013 38,285.68 0.45 0.01 -2.12 0.33 0.227 
..  no data 
Source:  Bank of Mexico. 
Table 1.2 Costa Rica and El Salvador's fore ign direct investment from world and Mexico  
US$ million 
Year Costa Rica El Salvador 
World Mexico World Mexico 
Flows Stock Flows Stock Stock Inward 
Outward 
Inward 
Outward 
Inward 
Outward 
Inward 
Outward 
Inward 
Inward 
2009 1,346.5 7.4 12,385.8 544.6 .. .. .. .. 7,695.6 821.3 
2010 1,465.6 24.8 14,065.8 648.7 40.4 0.1 463.5 9.3 7,283.6 751.2 
2011 2,178.4 57.8 16,202.3 1,105.8 183.4 0.5 611.1 12.2 7,494.9 799.1 
2012 2,332.3 428.5 18,742.8 1,543.8 346.3 -0.2 972.8 12.0 8,197.8 993.2 
2013 2,682.0 257.0 .. .. 132.7 0.1 .. .. .. .. 
..  no data 
Source:  UNCTAD (Costa Rica FDI with world for 2009), Central Bank of Costa Rica and Banco Central de 
Reserva of El Salvador authorities. 
Table 1.3 Honduras inward FDI flow from Mexico and world, 2009-2012  
Year Inward Flow (US$ million) 
World Mexico 
2009 508.8 167.7 
2010 969.2 123.8 
2011 1,014.4 153.9 
2012 1,058.5 191.5 
Source: Honduras authorities (information available at Información disponible en: 
http://www.bch.hn/flujos_inversion.php)  WT/REG349/1 
 
- 17 - 
 
 
  2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
2.1  Background Information 
2.1.  The Parties signed the Agreement on 22 November 2011 and it came into force as follows: 
Mexico-El Salvador and Mexico-Nicaragua, on 1 September 2012; Mexico-Honduras, on 
1 January 2013; Mexico-Costa Rica, on 1 July 2013; and Mexico-Guatemala on 1 September 2013. 
The Agreement was notified on 20 January 2014 pu rsuant to Article XXIV.7(a) of the GATT 1994 
and Article V.7(a) of the GATS.  
2.2.  The text of the Agreement, together with it s annexes, may be viewed on the following official 
web sites: 
Costa Rica:  
http://www.comex.go.cr/tratados/vigen tes/mexico_tlc/texto_tratado.aspx  
El Salvador:  
http://www.minec.gob.sv/index.p hp?option=com_phocadownloa d&view=category&id=75:tlc
_mexico_ca&Itemid=63 
Guatemala:  
http://portaldace.mineco.gob.gt/tratados-y-acuerdos-comerciales  
Honduras:  
http://www.sic.gob.hn/dgiepc/tlc-centroamerica---mexico.html  
 Mexico:   
 http://www.economia.gob.mx/comunidad-negoci os/comercio-exterior/tlc-acuerdos/america-
 latina  
Nicaragua: 
http://www.mific.gob.ni/COMERCIOEXTERIO R/ACUERDOSCOMERCIALESVIGENTES/TLCCent
roaméricaMéxico/tabid/781/language/en-US/Default.aspx  
2.3.  As can be seen from Box 2.1, the Agreement has 21 Chapters which are accompanied by 
annexes.9 There are also three separate annexes on non-conforming and future measures and 
activities reserved for the State. 
Box 2.1 General provisions of the agreement 
Chapter I Initial provisions 
Chapter II General definitions 
Chapter III National treatmen t and market access for goods 
Chapter IV Rules of origin 
Chapter V Customs procedures relating to the origin of goods 
Chapter VI Trade Facilitation 
Chapter VII Trade Defence 
Chapter VIII Sanitary and phytosanitary measures  
Chapter IX Technical Barriers to Trade 
Chapter X Governme nt procurement 
Chapter XI Investment 
Chapter XII Cross-border trade in services 
Chapter XIII Telecommunications 
Chapter XIV Temporary entr y of business persons 
Chapter XV  Electronic commerce 
Chapter XVI Intellectual property  
Chapter XVII Dispute settlement 
Chapter XVIII Transparency 
                                               
9 These annexes are not listed in Box 2.1. WT/REG349/1 
 
- 18 - 
 
  Chapter XIX Administrati on of the Agreement 
Chapter XX Exceptions 
Chapter XX1 Final provisions 
Annex I  Non-conforming measures 
Annex II Future measures  
Annex III Activities reserved for the State 
Source: Free trade Agreement between Mexico and Central America. 
2.4.  Unless otherwise provided, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua, 
considered individually, shall apply the rules and procedures under the Agreement bilaterally with 
Mexico (Article 1.4). 
2.5.  The objectives of the Agreement are to en courage the expansion and diversification of trade 
in goods and services, promote conditions of fair competition, eliminate barriers to trade and 
facilitate the movement of goods and services and of capital and business persons and enhance 
investment opportunities in each Party. Concerning full implementation, the Tariff Reduction Programmes (TRP) extend up to the eighth year for Mexico-Costa Rica (2020), the ninth year for Mexico-El Salvador (2021), the third year for Mexico-Guatemala (2015)
10, tenth year for Mexico-
Honduras (2022), starting from the entry into force of the Agreement and in 2012 for 
Mexico-Nicaragua.  
3  PROVISIONS ON TRADE IN GOODS 
3.1  Import duties and charges,  and quantitative restrictions 
3.1.1  General provisions 3.1.  Chapters III to VII deal with trade in goods and related aspects. 
3.2.  In Article 3.3, it is provided that each Party shall accord to the goods of the other Party 
(national treatment) no less favourable than the most favourable treatment accorded to similar, directly competitive or substitutable goods of national origin, pursuant to Article III of the GATT
 1994 and the interpretative notes thereto, which are incorporated as an integral part of 
the Agreement. However, national treatment does not apply to certain measures that appear in 
Annexes 3.3 and 3.9 (Exceptions to Articles 3.3 and 3.9). 
3.3.  As regards tariffs (Article 3.4), upon entry into force of the Agreement, the Parties commit to 
guaranteeing duty free access to their respective markets to originating goods imported from the 
other Party, other than those listed in Annex 3. 4 - Tariff Reduction Programme (TRP). Except as 
otherwise determined in the Agreement, no Party may increase any existing tariff rate nor adopt 
any new customs tariff on originating goods.11 This however does not prevent a Party from 
increasing or maintaining a customs tariff in accordance with the WTO Agreement or any other agreement that forms part of the WTO. The Article does not prevent a Party from raising a tariff to a level that does not exceed that determined in the TRP if this tariff has been unilaterally 
decreased to a level lower than that in the TR P. The Parties may examine the possibility of 
improving market access conditions for originating goods included in Annex 3.4. Agreements to this end shall be adopted through decisions of the Administrative Commission.  
3.4.  Subject to certain conditions, each Party shall grant duty-free temporary admission for some 
goods, namely: (i) tourist vehicles; (ii) goods for sports purposes or for display or demonstration 
(iii) equipment for the press or for sound or television broadcasting and cinematographic 
equipment and professional equipment necessary for carrying out a business activity, trade or 
profession; and (iv) commercial samples and advertising films, imported from the territory of the other Party, regardless of their origin and whether like, directly competitive or substitutable goods are available (Article 3.6). Likewise, each Party shall authorize duty-free import of commercial 
samples of negligible or no commercial value and of printed advertising materials (Article 3.7). 
                                               
10 Market access commitments, however, extend up to 2022. 
11 This does not intend to impede a Party to create a new subheading duty, if the customs tariff applied 
for is not higher than the tariff applied to the fraction. WT/REG349/1 
 
- 19 - 
 
 
  3.5.  The principles governing customs valuat ion applied between the Parties shall be those 
established in the WTO Customs Valuation Agreement (CVA) (Article 3.8). 
3.6.  With regard to non-tariff measures, except as otherwise provided in the Agreement, no Party 
may adopt or maintain any prohibition or restriction on the import of any goods from the other 
Party, except in accordance with Article XI of the GATT 1994. To this end, this Article and its 
interpretative notes are incorporated into the Agreement and form an integral part thereof. The Parties set out restrictions
12 in Annex 3.3 and 3.9 to the Agreement. 
3.7.  Each Party shall ensure that the implemen tation, administration and publication of customs 
measures is in accordance with the Agreement and the WTO Agreements (Article 3.11). The Parties shall not apply customs processing fees to  originating goods (Article 3.13) and shall not 
collect consular fees or charges or require consular formalities (Article 3.17).  
3.8.  The Parties undertake to publish any meas ure affecting imports of goods and the required 
formalities. They shall not apply any measure aimed at increasing tariffs or other charges, restrictions or prohibitions on imports from the other Party before its official publication 
(Article 3.23). 
3.9.  A Committee on Trade in Goods is established (Article 3.24). With the composition specified 
in Annex 3.24(a).
13 Its task shall be: (i) to follow up matters relating to the implementation of 
Chapter III); (ii) to examine proposals by the Parties to improve market access conditions of 
goods contained in the TRP; (iii) to give recomme ndations to the Administrative Commission and 
(iv) to coordinate the exchange of commercial information. The Committee shall adopt decisions by consensus. The Parties also establish the Subcommittee on Trade in Agriculture. 
3.1.2  Liberalization of trade and tariff lines 
3.1.2.1  Mexico 3.10.  Tables 3.1a and 3.1b show Mexico's liberalization of imports from El Salvador over the 
period 2012-2021, Nicaragua in 2012, from Costa Rica over the period 2013-2020, from 
Guatemala over the period 2013-2015 and from Honduras over the period 2013-2022. 
3.11.  In 2012, 58.3% of Mexico's tariff schedule was already duty-free under the MFN regime, 
corresponding to 14.8% of its average imports from El Salvador and 36% of average imports from 
Nicaragua over the period 2009-2011.
14 Until 2012, when the Agreement entered into force, an 
additional 39.6% of tariff lines had been libera lized for El Salvador, under the former Mexico-
Northern Triangle Agreement and 41.4% for Nicaragua, under the former Bilateral Agreement 
between Mexico and Nicaragua, corresponding to 83.9% and 50% respectively of Mexico's imports 
from El Salvador and Nicaragua. Further liberalization is planned under the Agreement in 2021 for El Salvador. At the end of the implementation period, in 2021 (2012 for trade with Nicaragua), 233 
                                               
12 For Costa Rica: controls on imports of petr oleum and its by-product s; electricity (Central  American 
Tariff System (CATS) 2716.00.00); controls on imports of spirits and  crude rums; measures authorized by the 
WTO Dispute Settlement Body (DSB). For El Salvador : controls on imports of weapons and ammunition, 
accessories and parts thereof; controls on imports of ca rs, buses, and trucks more than eight, ten and fifteen 
years old, respectively; measures authorized by the DS B. For Guatemala: controls  on imports of weapons; 
measures authorized by the DSB. For Honduras: weapons and ammunition; used vehicles and buses; ozone-depleting substances ; petroleum and its by-products; products co ntaining asbestos; measures authorized by 
the DSB. For Mexico: prohibitions or restrictions on imports of goods in Headings 6309 and 6310; prohibitions or restrictions on imports of used products in Headin gs and Subheadings listed in  Section E of Annex 3.3 and 
3.9 and products of Chapter 27 (mineral fuels) also listed in the said Annex; measures authorized by the DSB. 
For Nicaragua: prohibitions or restrictions on impo rts of goods in CATS Headings 6309 and 6310; wooden 
products and used products listed in Section F.1(d) and (e) of Annex 3.3 an d 3.9; measures authorized by the 
DSB. 
13 For Costa Rica, the Ministerio de Comercio Exterior ; for El Salvador and Guatemala, the Ministerio de 
Economía ; for Honduras, the Secretaría de Estado en los De spachos de Industria y Comercio;  for Mexico, the 
Secretaría de Economía  and for Nicaragua, the Ministerio de Fomento Industria y Comercio , or their 
successors. (See also Section 5.5 Institutional framework).  
14 In 2012 and 2013, Mexico's tariff schedule based on the HS 2007 nomenclature contained 12,107 
HS eight-digit tariff lines, 12,027 of which were subject to ad valorem  rates and 80 to non- ad valorem  rates. WT/REG349/1 
 
- 20 - 
 
  tariff lines will still be subject to duty (1.9% of the tariff), corresponding to 1.4% of Mexico's 
imports from El Salvador in 2009-2011 and 30 lines (0.2% of the tariff), corresponding to 15% of imports from Nicaragua will remain subject to duty.  
3.12.  In 2013, 58.7% of Mexico's tariff sch edule was already duty-free for imports from 
Guatemala while 59.3% was duty free for imports from Costa Rica and Honduras, under the MFN 
regime, corresponding to 90.6%, 26% and 12% of its average imports from Costa Rica, Guatemala and Honduras over the period 2010-2012.
15 Until 2013, when the Agreement entered 
into force, a further 39.4%, 39.3% and 38.6% of tariff lines had been liberalized under the former 
Bilateral Mexico-Costa Rica and the Mexico-Northern Triangle Agreements, corresponding to 9.4%, 60% and 86%, respectively, of Mexico's impo rts from Costa Rica, Guatemala and Honduras. 
Further liberalization is planned under the Agreement for the period 2015-2017, 33 tariff lines 
corresponding to 0.3% of tariff lines for trade with Guatemala will be liberalized in 2015 and one 
tariff line corresponding to 0.01% of tariff lines for trade with Costa Rica in 2017. At the end of the implementation period, in 2020 for Costa Rica, 2015 for Guatemala and 2022 for Honduras, 146 
tariff lines (1.2% of the tariff) will still be subject to duty, corresponding to 0.05 % of Mexico's 
imports from Costa Rica in 2010-2012; 216 tariff lines (1.8% of the tariff) corresponding to 14% of imports from Guatemala; and 204 tariff lines (1.7% of the tariff) corresponding to 2% of 
imports from Honduras. 
Table 3.1a Mexico: Tariff elimination commitments under the Agreement and average 
values of corresponding trade with Centra l America (Mexico with El Salvador and 
Nicaragua)
 
Period Commitments applied by Mexico to  
No. of tariff lines Average imports  
(in million US$) Average imports (in 
million US$) % to total imports  
Entry into force Entry into force  2009-11  2009-11  
2012 2012  
El Salvador Nicaragua El 
Salvador Nicaragua El 
Salvador Nicaragua El 
Salvador Nicaragua 
MFN Duty-
Free 7,062 7,062 58.3  58.3 13.9 44 14.8 36  
2012* 4,790 5,015 39.6 41.4 79.2 61 83.9 50 
2021 22  0.2   0.01  0.01  
Remain 
dutiable 233 30 1.9 0.2 1.3 18 1.4 15 
Total 12,107 12,107 100  100 94 123 100 100  
* 2012: Under the Mexico-Northern Triangle Agreement for El Salvador and under the Mexico-Nicaragua 
Agreement for Nicaragua. 
Note: Covers HS chapters 1-97. Based on the HS 2007 nomenclature.  Source:  WTO estimates based on data provided  by Mexican authorities and WTO-IDB database. 
Table 3.1b  Mexico: Tariff elimination commitments under the Agreement and average values of 
corresponding trade with Central America (Mex ico with Costa Rica, Guatemala, Honduras)  
Period Commitments applied by Mexico to  
No. of tariff lines % of tariff lines  Average imports (in 
million US$) % to total imports  
Entry into force Entry into force  2010-12  2010-12  
2013 2013  Costa Rica 
Guatemala 
Honduras 
Costa Rica 
Guatemala 
Honduras 
Costa Rica 
Guatemala 
Honduras 
Costa Rica 
Guatemala 
Honduras 
MFN Duty-Free 7,185 7,199 7,185 59.3  58.7 59.3 1,964  143 29 90.6 26 12  
2013* 4,773 4,823 4,676 39.4 39.3 38.6 202.7  327 217 9.4 60 86 
                                               
15 Mexico's tariff schedule with Guatemala tariffs is based on HS 2012 nomenclature; in 2013 it 
contained 12,271 tariff lines of which 12,190 were subject to ad valorem rates and 81 to non- ad valorem  rates. WT/REG349/1 
 
- 21 - 
 
 
  Period Commitments applied by Mexico to  
No. of tariff lines % of tariff lines  Average imports (in 
million US$) % to total imports  
Entry into force Entry into force  2010-12  2010-12  
2013 2013  Costa Rica 
Guatemala 
Honduras 
Costa Rica 
Guatemala 
Honduras 
Costa Rica 
Guatemala 
Honduras 
Costa Rica 
Guatemala 
Honduras 
2015  33   0.3   -   -  
2017 1  12 0.01  0.1 -  - -  - 
2020 2   0.02    0.02   0.001   
2022   30   0.2   -   - 
Remain dutiable 146 216 204 1.2  1.8 1.7 1.1 75 6 0.05 14 2  
Total 12,107 12,271 12,107 100 100 100 2,168  545 251 100 100 100 
* 2013: Under the Mexico-Costa Rica Agreement for Costa Rica and under the Mexico-Northern Triangle 
Agreement for Guatemala and Honduras. - no imports. 
Note: Covers HS chapters 1-97. Based on the HS 20 07 nomenclature except for Mexico with Guatemala 
which is based on HS 2012 Nomenclature.  
Source:  WTO estimates based on data provided  by Mexican authorities and WTO-IDB database. 
3.1.2.2  Costa Rica 
3.13.  Table 3.2 shows Costa Rica's tariff elimination under the Agreement and the former bilateral 
Agreement between Mexico and Costa Rica. In 2013, duty-free entry under the MFN regime 
applied to 2.8% of Costa Rica's tariff schedule (189 tariff lines), corresponding to 4.5% of 
Costa Rica's average imports from Mexico over the period 2010-2012.16 Until 2013, under the 
former Mexico-Costa Rica Agreement, an additional 95% of tariff lines had been liberalized corresponding to 94.4 of Costa Rica's imports from Mexico. Upon entry into force of the 
Agreement, a further 0.2% of tariff lines were liberalized, corresponding to 0.2% of Costa Rica's 
imports from Mexico. Liberalization for one tariff line is planned for 2017 and another in 2020. At the end of the implementation period in 2020, 135 tariff lines will still be subject to duty (2% of 
the tariff schedule), corresponding to 0.8% of Costa Rica's imports from Mexico in 2010-12. 
Table 3.2 Costa Rica: Tariff eliminatio n commitments under the Agreement and 
corresponding average trade 
Duty phase-out period Number of 
lines % of total lines 
in Costa Rica's 
tariff schedule Value of Costa Rica's 
imports from Mexico 
(2010-2012) 
in million US$ % of Costa 
Rica's total 
imports from  
Mexico 
2010-2012 
MFN duty free (2013) 189 2.8 46.9 4.5 
Duty-free under:     
Mexico-Costa Rica 6,381 95.0 992.0 94.4 
Mexico Central America     
2013 12 0.2 2.5 0.2 
2017 1 0.0 0.0 0.0 
2020 1 0.0 0.5 0.0 
Remain dutiable 135 2.0 8.6 0.8 
Total 6,719 100.0 1,050.5 100.0 
Note: Based on the HS 2007 nomenclature. 
Source:  WTO estimates based on Costa Rican authorities and WTO-IDB database. 
                                               
16 In 2013, Costa Rica's tariff schedule contained 6,719 HS eight-digit tariff lines, all of which were 
subject to ad valorem  rates.  WT/REG349/1 
 
- 22 - 
 
  3.1.2.3  El Salvador 
3.14.  Table 3.3 shows El Salvador's tariff elimination under the Agreement and the former 
Mexico-Northern Triangle Agreement. In 2012, du ty-free entry under the MFN regime applied to 
47.6% of El Salvador's tariff schedule (3,310 tariff lines), corresponding to 45.8% of El Salvador's 
average imports from Mexico over the period 2009-2011.17 Until 2012, under the former Mexico-
Northern Triangle Agreement, an additional 48.3% of tariff lines had been liberalized, corresponding to 50% of El Salvador's imports from Mexico. Though there was no further 
liberalization at entry into force of the Agreement, liberalization of 46 tariff lines (0.7% of 
El Salvador's tariff schedule) corresponding to 0.6% of El Salvador's imports from Mexico is 
planned for 2021. At the end of the implementation period, 237 tariff lines will still be subject to 
duty (3.4% of the tariff), corresponding to 3. 5% of El Salvador's imports from Mexico.  
Table 3.3 El Salvador: Tariff eliminatio n commitments under the Agreement and 
corresponding average trade  
Duty phase-out period Number of 
lines % of total 
lines in El 
Salvador's 
tariff schedule Value of El 
Salvador's imports 
from Mexico 
(2009-2011) 
in million US$ % of El 
Salvador's 
total 
imports 
from  
Mexico 
2009-2011 
MFN duty free (2012) 3,310 47.6 306.6 45.8 
Duty-free under:     
Mexico-Northern Triangle (2012) 3,355 48.3 334.8 50.0 
Mexico Central America (2021) 46 0.7 4.2 0.6 
Remain dutiable 237 3.4 23.4 3.5 
Total 6,948 100.0 669.1 100.0 
Note: Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on El Salvador authorities, Agreement and WTO-IDB database. 
 
3.1.2.4  Guatemala 
3.15.  Table 3.4 shows Guatemala's tariff elimin ation under the Agreement and the former Mexico-
Norther Triangle Agreement. In 2013, MFN duty-f ree treatment applied to 49.5% of Guatemala's 
tariff schedule (3,456 tariff lines), corresponding to  46.0% of its average imports from Mexico over 
the period 2010-2012.18 Until 2013, under the former Mexico-Northern Triangle Agreement, an 
additional 47.2% of tariff lines were liberalized , corresponding to 50.9% of imports from Mexico. 
Under the Agreement, four tariff lines were liberalized in 2014 and one line will be liberalized in 
2015. At the end of implementation, 226 tariff lines w ill still be subject to duty (3.2% of the tariff 
schedule), corresponding to 2.8% of Guatemala's imports from Mexico.  
Table 3.4 Guatemala: Tariff eliminatio n commitments under the Agreement and 
corresponding average trade 
Duty phase-out period Number of 
lines % of total lines 
in Guatemala's 
tariff schedule Value of Guatemala's 
imports from Mexico 
(2010-2012) 
in million US$ % of 
Guatemala's 
total imports 
from  
Mexico 
2010-2012 
MFN duty free (2013) 3,456 49.5 793.0 46.0 
Duty-free under:     
Mexico Northern Triangle  
(2013) 3,293 47.2 877.5 50.9 
Mexico-Central America     
2014 4 0.1 3.8 0.2 
                                               
17 In 2012, El Salvador's tariff schedule contained 6,948 HS eight-digit tariff lines, all of which were 
subject to ad valorem  rates.  
18 In 2013, Guatemala's tariff schedule contained 6,980 HS eight-digit tariff lines, all of which were 
subject to ad valorem  rates. WT/REG349/1 
 
- 23 - 
 
 
  Duty phase-out period Number of 
lines % of total lines 
in Guatemala's 
tariff schedule Value of Guatemala's 
imports from Mexico 
(2010-2012) 
in million US$ % of 
Guatemala's 
total imports 
from  
Mexico 
2010-2012 
2015 1 0.0 0.0 0.0 
Remain dutiable 226 3.2 49.0 2.8 
Total 6,980 100 1723.3 100 
Note: Based on the HS 2012 nomenclature. 
Source: WTO estimates based on data prov ided by the Guatemalan authorities. 
3.1.2.5  Honduras 
3.16.  Table 3.5 shows Honduras' tariff eliminat ion under the Agreement and the former Mexico-
Northern Triangle agreement. In 2013, duty-free entry under the MFN regime applied to 47.9% of 
Honduras' tariff schedule (3,331 tariff lines) corre sponding to 38.9% of Honduras' average imports 
from Mexico over the period 2010-2012.19 Until 2013, under the former Mexico-Northern Triangle 
Agreement, an additional 47.6% of tariff lines had been liberalized, corresponding to 56.7% of Honduras' imports from Mexico. Though there is no liberalization upon entry into force of the 
Agreement, liberalization of five tariff lines is planned for 2017 and 81 lines in 2022. At the end of 
the implementation period, in 2022, 223 tariff lines w ill still be subject to duty (3.2% of the tariff 
schedule), corresponding to 2.5% of Honduras' imports from Mexico.  
Table 3.5 Honduras: Tariff elimination commitments under the Agreement and 
corresponding average trade 
Duty phase-out period Number of 
lines % of total lines 
in Honduras' 
tariff schedule Value of Honduras' 
imports from Mexico 
(2010-2012) 
in million US$ % of 
Honduras' 
total imports 
from  
Mexico 
2010-2012 
MFN duty free (2013) 3,331 47.9 232.7 38.9 
Duty-free under:     
Mexico-Northern Triangle 
(2013) 3,310 47.6 338.8 56.7 
Mexico-Central America     
2017 5 0.1 1.8 0.3 
2022 81 1.2 10.0 1.7 
Remain dutiable 223 3.2 14.7 2.5 
Total 6,950 100.0 598.0 100.0 
Note: Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on Hondur as authorities and WTO-IDB database. 
3.1.2.6  Nicaragua 
3.17.  Table 3.6 shows Nicaragua's tariff elimination under the Agreement and the former bilateral 
Agreement between Mexico and Nicaragua. In 2012 , duty-free entry under the MFN regime applied 
to 46.4% of Nicaragua's tariff schedule (3,416  tariff lines), corresponding to 42.27% of 
Nicaragua's average imports from Mexico over the period 2009-2011.20 Until 2012, under the 
former bilateral Agreement between Mexico and Ni caragua, an additional 52.0% of the tariff 
schedule (3,822 tariff lines) had been liberalized, corresponding to 54.6% of Nicaragua's imports 
from Mexico. Upon entry into force of the Agreement, a further 91 tariff lines were liberalized 
(1.2% of Nicaragua's tariff schedule) corresponding  to 3.07% of Nicaragua's imports from Mexico; 
28 tariff lines will still remain subject to duty (0.1% of the tariff schedule), corresponding to 
0.02% of Nicaragua's imports from Mexico. 
                                               
19 In 2012, Honduras' tariff schedule contained 6,950 HS eight-digit tariff lines, all of which were subject 
to ad valorem  rates. 
20 In 2012, Nicaragua's tariff schedule contained 7,357 HS eight-digit tariff lines, all of which were 
subject to ad valorem  rates. WT/REG349/1 
 
- 24 - 
 
  Table 3.6 Nicaragua  
Tariff elimination commitments under the Ag reement and corresponding average trade 
Duty phase-out period Number of 
lines % of total lines 
in Nicaragua's 
tariff schedule Value of Nicaragua's 
imports from Mexico 
(2009-2011) 
in million US$ % of 
Nicaragua's 
total imports 
from  
Mexico 
2009-2011 
MFN duty free  
(2012) 3,416 46.4 136.8 42.27 
Duty-free under:     
Mexico-Nicaragua 3,822 52.0 176.9 54.64 
Mexico-Central America 91 1.2 9.9 3.07 
Remain dutiable 28 0.4 0.1 0.02 
Total 7,357 100.0 323.7 100.00 
Note: Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on Nicara guan authorities and WTO-IDB database. 
3.1.3  Liberalization schedule 
3.1.3.1  Mexico 
3.18.  Tables 3.7a and 3.7b and Chart 3.1 provide details on Mexico's tariff liberalization by 
HS Section and Chapter, respectively. 
3.19.  For imports from El Salvador and Nicaragua (Table 3.7a), the bulk of liberalization across all 
Sections had taken place by 2012. In 2021, at the end of implementation period of the Agreement, the 233 lines remaining subject to duties for El Salvador will be in HS sections I (live animals), II 
(vegetable products), IV (prepared foodstuffs, beverages and tobacco), XV (base metals and 
articles of base metal), XVII (transport equipm ent) and XIX (arms and ammunition); the majority 
of these will be in Section I. Tariffs will continue to apply to 22 Chapters. Chart 3.1B shows that MFN and preferential rates in most of these Chapters will be the same, which indicates no 
preferential liberalization of these products, exce pt for chapters 72 and 73 where the preferential 
rate is two percentage points lower than the MFN rate. The highest preferential and MFN rates for products that remain subject to duty correspond to Chapters 2 (meat and edible offal, 125.9%), 
21 (miscellaneous edible preparations, 116.3%), 17 (sugars and sugar confectionery, 74.7%), 
24 (Tobacco and manufactured tobacco substitutes, 59.7%) and 87 (transport equipment, 45.9%).  
3.20.  For imports from Nicaragua (Table 3.7a), as of 2012, 30 tariff lines will still be subject to 
duty in HS sections II (vegetable products) an d IV (prepared foodstuffs, beverages and tobacco) 
corresponding to five HS Chapters. Chart 3.1E shows that MFN and preferential rates in these Chapters will be the same, which indicates no preferential liberalization of these products. The 
highest preferential and MFN rates for products that remain subject to duty correspond to 
Chapters 17 (sugars and sugar confectionery, 117.3%) and 9 (coffee, tea, mate and spices, 49.7%). 
3.21.  For imports from Costa Rica (Table 3.7b), by 2020, 146 tariff lines will still be subject to 
duty in HS sections I (live animals), II (vegetable products), IV (prepared foodstuffs, beverages and tobacco), VI (chemicals and chemical produc ts) and XI (textile and textile articles); the 
majority of these are in Sections I and IV. At the end of the implementation period, tariffs will 
continue to apply to 15 Chapters. Chart 3.1A shows that MFN and preferential rates in most these Chapters will be the same, which indicates no preferential liberalization of these products, except for chapters 10, 16 and 21 where the preferential rates are, respectively, 10, 2.5 and 
2.9 percentage points lower than the MFN rate s. The highest preferential and MFN rates for 
products that remain subject to duty correspond to Chapters 2 (meat and edible offal, 120%), 21 (miscellaneous edible preparations, 69.6%), 7 and 17 (edible vegetables and certain roots and 
tubers; sugars and sugar confectionery, both 65%) and 24 (tobacco and manufactured tobacco 
substitutes, 46.5%). WT/REG349/1 
 
- 25 - 
 
 
  3.22.  For imports from Honduras (Table 3.7b), by 2022, 204 tariff lines will still be subject to duty 
in HS sections I (Live animals), II (Vegetable products), IV (prepared foodstuffs, beverages and 
tobacco), V (minerals), XI (textiles and textiles articles), XV (base metals and base metals 
products), XVII (transport equipment) and XIX (a rms and ammunitions; the majority of these are 
in Sections I and IV. At the end of the implementation period, tariffs will continue to apply to 
22 Chapters. Chart 3.1D shows that MFN and preferen tial rates in most these Chapters will be the 
same, which indicates no preferential liberalizati on of these products, except for chapters 16 
(MFN 20%, preferential 15.6%), 19 (MFN 10%, pref erential 5%), 22 (MFN 14.3%, preferential 
13.3%), 72 (MFN 3%, preferential 0.6%), 73 (MFN 6%, preferential 3.6%) and 87 (46.5% MFN, 42.7% preferential). The highest preferential and MFN rates for products that remain subject to 
duty correspond to Chapters 2 (meat and edible offal, 105.6%), 17 (sugars and sugar 
confectionery, 65%), 7 (Edible vegetables and certain roots and tubers, 64%), 24 (tobacco and 
manufactured tobacco substitutes, 59.7%) and 9 (coffee, tea, mate and spices, 49.7%). 
3.23.  For imports from Guatemala (Table 3.7b), by 2015, 216 tariff lines will still be subject to 
duty in HS sections I (live animals), II (vegetable products), III (animal or vegetable fats and 
oils), IV (prepared foodstuffs, beverages and tobacco), V (minerals), XV (base metals and base metals products), XVII (transport equipment) an d XIX (arms and ammunitions; the majority of 
these are in Sections I and IV. At the end of the implementation period, tariffs will continue to 
apply to 23 Chapters. Chart 3.1C shows that MFN an d preferential rates in most of these Chapters 
will be the same, which indicates no preferenti al liberalization of these products, except for 
chapters 15 (MFN 5%, preferential 2.5%), 19 (MFN 10%%, preferential 5%), 21 (MFN 20%, 
preferential 15%), 22 (MFN 16%, preferential 14.6%), 72 (MFN 3%, preferential 0.9%), 73 (MFN 
6%, preferential 3.1%) and 87 (MFN 50%, preferen tial, 45.8%). The highest preferential and MFN 
rates for products that remain subject to duty correspond to Chapters 2 (meat and edible offal, 
106.9%), 17 (sugars and sugar confectionery, 65%), 7 (edible vegetables and certain roots and 
tubers, 64%), 24 (tobacco and manufactured tobacco substitutes, 61.5%), 9 (coffee, tea, mate and spices, 49.7%) and 87 (accessories for transport equipment, 45.8%). 
Table 3.7a Mexico: Tariff elimination under the Agreement, by HS Section  
Mexico with El Salvador and Nicaragua 
Note: Covers HS chapters 1-97. 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 ta riff-related calculations.  
 Based on the HS 2007 nomenclature.  
Source:  WTO estimates based on data provided by the Mexican authorities.HS 
Section MFN (2012) No. of duty-free lines 
Aver-
age 
(%) Total 
No. of 
lines Duty-
free 
lines El Salvador Nicaragua 
2012 2021 Remain 
dutiable Average 
Final Tariff 
(Dutiable) 2012 Remain 
dutiable Average 
Final Tariff 
(Dutiable) 
I 32.6 333 37 195  101 74.5 296   
II 14.6 468 100 339  29 42.4 360 8 46.0 
III 16.4 69 14 55    55   
IV 22.6 341 8 278 1 54 52.5 311 22 117.3 
V 0.4 211 202 9    9   
VI 1.6 2,859 2,251 608    608   
VII 4.3 566 343 223    223   
VIII 4.8 124 92 32    32   
IX 7.3 186 63 123    123   
X 2.8 318 182 136    136   
XI 12.4 1,255 159 1,096    1,096   
XII 17.3 104 15 89    89   
XIII 5.9 311 159 152    152   
XIV 4.2 65 43 22    22   
           
XV 2.7 1,272 953 312  7 2.8 319   
XVI 3.1 2,480 1,849 631    631   
XVII 7.8 402 194 176 21 11 45.9 208   
XVIII 2.8 453 319 134    134   
XIX 11.2 33 2   31 11.9 31   
XX 9.9 243 63 180    180   
XXI 0.0 14 14        
Total 6.1 12,107 7,062 4,790 22 233 53.6 5,015 30 83.8  
  WT/REG349/1  
 
- 26 - Table 3.7b Mexico-Costa Rica, Mexi co-Honduras and Mexico-Guatemala HS Section MFN (2013) No. of duty-free lines MFN (2013) No. of duty-free lines Average 
(%) 
No. of lines 
Duty-free 
lines Costa Rica Honduras 
Average 
(%) 
No. of lines 
Duty-free 
lines Guatemala 2013 
2017 
2020 
Remain 
dutiable 
Average 
Final 
Tariff 
(Dutiable) 
2013 
2017 
2022 
Remain 
dutiable 
(%) 
Average 
Final 
Tariff 
(Dutiable) 
2013 
2015 
Remain 
dutiable 
Average 
Final 
Tariff 
(Dutiable) 
I 26.9 333 46 220   67 74.8 200   87 63.1 27.2 439 51 288  100 67.8 
II 13.6 468 102 355   11 50.3 344   22 35.5 13.8 518 108 382  28 33.4 
III 12.3 69 15 54     54     16.1 72 15 56  1 2.5 
IV 20.9 341 18 259 1 2 61 47.8 273   50 38.4 21.0 357 18 289  50 41.6 
V 0.3 211 203 8     7   1 5.0 0.3 212 204 7  1 5.0 
VI 1.5 2,859 2,257 600   2 6.0 602     1.5 2,865 2,264 601    
VII 4.0 566 350 216     216     4.0 565 349 216    
VIII 4.8 124 92 32     32     4.8 124 92 32    
IX 6.7 186 65 121     114   7 7.1 6.8 187 68 119    
X 2.8 318 182 136     136     2.8 311 182 129    
XI 12.2 1,255 159 1,091   5 20.0 1,096     12.2 1,251 159 1,092    
XII 14.5 104 20 84     84     14.8 102 18 84    
XIII 5.7 311 162 149     149     5.7 310 162 148    
XIV 3.3 65 47 18     18     3.3 65 47 18    
XV 2.7 1,272 958 314     309   5 3.0 2.6 1,268 958 305  5 2.6 
XVI 2.8 2,480 1,897 583     583     2.8 2,484 1,899 585    
XVII 7.6 402 200 202     159  30 13 42.7 7.6 402 200 157 33 12 45.8 
XVIII 2.7 453 323 130     130     2.7 449 319 130    
XIX 11.2 33 2 31      12  19 12.1 11.2 33 2 12  19 12.1 
XX 9.3 243 73 170     170     9.4 243 70 173    
XXI 0.0 14 14           0.0 14 14     
Total 5.7 12,107 7,185 4,773 1 2 146 59.9 4,676 12 30 204 44.8 5.9 12,271 7,199 4,823 33 216 49.6 
Note: Covers HS chapters -97. Fo r 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 incl uded in the tariff-related calculations. 
 Based on the HS 2007 nomenclature except for Mexico with Guatemala which is based on HS 2012 Nomenclature. 
Source:  WTO estimates based on data pr ovided by the Mexican authorities.  
 
  WT/REG349/1 
 
- 27 - 
 
  Chart 3.1 Mexico: Average of dutiable rates, by HS Chapter 
020406080100120140
2
45789
1617
*18
192122242963
020406080100120140
1
2
4
7
8
9
10
1116
17
*18
19
21
22
23
24
72
73
87
93
020406080100120140
1
2
4
78
9
10
11
1215
16
17
*18
1921
22
23
24
2772
73
87
93
020406080100120140
1
24789
10111617
*18
1921222324274472
73
8793
020406080100120140
8 9 17 *18 *21MFN
PreferentialA. Mexico-Costa Rica B. Mexico-El Salvador
C. Mexico-Guatemala
D. Mexico-Honduras
E. Mexico-NicaraguaRate of duty (%) Rate of duty (%)
Rate of duty (%)Rate of duty (%)Rate of duty (%)HS ChapterHS ChapterHS Chapter
HS Chapter
HS ChapterNotes:  
For the calculation of averages, specific duties are excluded and the ad valorem parts of alternate rates are 
included.
HS chapters with asterisk(*) contain specific duties only.
The blue line delineates HS chapters 1-24 and 25-97.Legend:
 
Source: WTO Estimates based on data from Mexican authorities. 
3.1.3.2  Costa Rica 
3.24.  Table 3.8 and Chart 3.2 provide details on Co sta Rica's tariff liberalization by HS Section and 
Chapter, respectively. For imports from Mexico, by 2020, 135 tariff lines will still be subject to duty 
in HS sections I (live animals), II (vegetable products), IV (prepared foodstuffs, beverages and tobacco), VI (chemicals and chemical products) and XI (textiles and textile articles); the majority of these are in Sections I and IV. At the end of the implementation period, tariffs will continue to apply 
to 14 Chapters. Chart 3.2 shows that MFN and preferen tial rates in these Chapters will be mostly the 
same which indicates no preferential liberalization of these products, except for Chapters 18 and 19 
where the preferential rates are half the M FN rates and chapters 22, 16, 4, and 21 where 
preferential rates are, respectively, two, four, fi ve and 14.5 percentage points lower than the MFN 
rate. The highest preferential and MFN rates for produc ts that remain subject to duty are in Chapters 
2 (meat and edible offal, 66.4%), 4 (dairy produce, MFN 57%, preferential 52,1%), 16 (preparations 
of meat, of fish or of crustaceans, 55.5% MFN, pr eferential 51.8%), 7 (edible vegetables and certain 
roots and tubers, 38.1%), and 21 (miscellaneous ed ible preparations, MFN 40.5% and preferential 
24%).  WT/REG349/1 
 
- 28 - 
 
  Table 3.8 Costa Rica: Tariff elimination under the Agreement, by HS Section 
HS Section MFN average%  No. of lines MFN 2013  Number of duty-free lines  Remain dutiable Avg. Final 
Tariff 
(Dutiable)  Mexico-
Costa 
Rica Mexico-Central 
America 
2013  2017  2020  
I 21.1 299  235 4   60 60.0 
II 9.5 377  359    18 23.7 
III 8.9 54  54      
IV 13.9 274  215 7 1 1 50 14.8 
V 3.2 183 11 172      
VI 2.7 1,109 2 1,105 1   1 0.5 
VII 5.2 335  335      
VIII 8.8 108  108      
IX 8.9 138 1 137      
X 5.7 294  294      
XI 9.9 920 1 913    6 11.7 
XII 13.0 64  64      
XIII 7.0 176  176      
XIV 7.5 54  54      
XV 3.8 697 1 696      
XVI 2.8 974 148 826      
XVII 5.9 234 3 231      
XVIII 4.6 237 22 215      
XIX 15.0 21  21      
XX 10.9 162  162      
XXI 8.2 9  9      
Total 6.7 6,719 189 6,381 12 1 1 135 35.8 
Note: Based on the HS 2007 nomenclature. 
Source:  WTO estimates based from Costa Rican authorities. 
Chart 3.2 Costa Rica: Average of dutiable rates, by HS Chapter 
 
010203040506070
24789 1 6 1 7 1 8 1 9 2 1 2 2 2 4 2 9 6 3Rate of duty (%)
HS Chapter
MFN Preferential 
Source:  WTO Estimates based on da ta from Costa Rican authorities. 
3.1.3.3  El Salvador 
3.25.  Table 3.9 and Chart 3.3 provide details on El Salvador tariff liberalization by HS Section and 
Chapter, respectively. For imports from Mexico, by 2021, 237 tariff lines will still be subject to duty 
in HS sections I (live animals), II (vegetable products), IV (prepared foodstuffs, beverages and 
tobacco), V (mineral Products), XV (base metals and articles thereof); XVII (vehicles, aircraft, 
vessels); XIX (arms and ammunition) of which the majority are in Section I. At the end of the implementation period, tariffs will continue to apply to 21 Chapters. Chart 3.3 shows that MFN and WT/REG349/1 
 
- 29 - 
 
  preferential rates in half of these HS Chapters will be the same which indicates no preferential 
liberalization of these products, except for HS Chapter 2 (meat and edible meat offal), 4 (dairy produce), 7 (edible vegetables and certain roots and tubers), 8 (edible fruits and nuts), 10 (cereals), 21 (miscellaneous edible preparations) and 22 (bev erages) where the preferential rates are only 
marginally lower than the MFN rates, and HS Chapte rs 72 (iron and steel), 73 (articles of iron and 
steel) and 16 (aquatic invertebrates) where preferenti al rates are 6, 4.2, and 3.7 percentage points 
lower than the MFN rates, respectively. The five highest preferential and MFN ad valorem  rates for 
products that remain subject to duty correspond to  HS chapters 19 (preparations of cereals, flour, 
starch or milk, 40%), 17 (sugars and sugar confectionery, 34.7%), 2 (meat and edible meat offal, MFN 33.5% and preferential 33.2%), 93 (arms an d ammunition, 30%) and 10 (cereals, 29.4%). 
Table 3.9 El Salvador: Tariff eliminatio n under the Agreement, by HS Section 
HS Section MFN average%  No. of lines MFN 2012  Number of duty-free 
lines under the 
Agreements Remain dutiable Avg. Final 
Tariff 
(Dutiable) Mexico-
Northern 
Triangle 
(2012) 
Mexico-
Central 
America 
(2021) 
I 15.2 448 45 298  105 28.8 
II 9.1 418 146 234  38 18.4 
III 7.5 57 18 39    
IV 16.3 293 35 220 1 37 24.5 
V 2.7 187 118 62  7 9.3 
VI 1.9 1,113 882 231    
VII 5.3 336 147 189    
VIII 8.3 108 19 89    
IX 7.9 139 28 111    
X 5.1 292 148 144    
XI 9.6 918 117 801    
XII 12.8 64 3 61    
XIII 6.3 175 80 95    
XIV 6.9 54 15 39    
XV 3.2 701 462 211  28 6.4 
XVI 2.1 978 802 176    
XVII 6.2 234 67 121 45 1 5.0 
XVIII 3.8 234 150 84    
XIX 30.0 21    21 30.0 
XX 10.7 169 28 141    
XXI 7.8 9  9    
Total 6.3 6,948 3,310 3,355 46 237 23.3 
Note: Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on El Salvador authorities, Agreement and WTO-IDB database. 
Chart 3.3 El Salvador: Average of dutiable rates, by HS Chapter  
0510152025303540
1 2 4 7 8 9 10 11 16 17 18 19 21 22 23 24 25 72 73 87 93Rate of duty (%)
HS Chapter
MFN Preferential 
Source: WTO Estimates based on data from El Salvad or authorities, Agreement and WTO-IDB database. WT/REG349/1 
 
- 30 - 
 
  3.1.3.4  Guatemala 
3.26.  Table 3.10 and Chart 3.4 provide details on Guatemala's tariff liberalization by HS Section and 
Chapter, respectively. For imports from Mexico, at  the end of the implementation period, 226 tariff 
lines will still be subject to duty in HS sections I (live animals), II (vegetable products), III (fats and 
oils), IV (prepared foodstuffs, beverages and tobacco), V (mineral products), XV (base metals) and 
XIX (arms and ammunitions); the majority of these are in Sections I, II and IV. At the end of the implementation period, tariffs will continue to apply to 22 Chapters. Chart 3.4 shows that MFN and 
preferential rates in these Chapters will be mostly the same which indicates hardly any preferential 
liberalization of these products, except for Chapter 15, 21, 22, where preferential rates are, respectively, 11.5, five and nine percentage points  lower than the MFN rate and chapters 18, 72 and 
73 where the preferential rates are approximately ha lf the MFN rates. The highest preferential and 
MFN rates for products that remain subject to du ty correspond to Chapters 22 (beverages, spirits 
and vinegar, MFN 23.3%, 14.3% preferential), 10 (cereals, 21.2%) and 7 (edible vegetables and 
certain roots and tubers, 19%). 
Table 3.10 Guatemala: Tariff elimination under the Agreement, by HS Section 
HS Section MFN average%  No. of lines MFN 2013  Number of duty-free 
lines Remain dutiable Avg. Final 
Tariff 
(Dutiable) Mexico- 
Northern 
Triangle Mexico-Central 
America 
2013  2014 2015 
I 11.2 457 47 305 2  103 12.9 
II 8.8 419 149 234   36 16.9 
III 7.5 57 19 37   1 3.5 
IV 12.5 296 37 230   29 14.0 
V 2.6 187 119 46   22 8.0 
VI 1.9 1,129 889 240     
VII 4.4 336 152 184     
VIII 8.3 108 19 89     
IX 8.5 139 28 111     
X 5.1 292 149 143     
XI 9.6 918 118 800     
XII 12.8 63 3 60     
XIII 6.2 175 81 94     
XIV 7.0 54 15 39     
XV 3.1 702 476 205 2  19 7.4 
XVI 2.1 979 804 175     
XVII 2.6 234 173 60  1   
XVIII 3.8 234 150 84     
XIX 15.0 21  5   16 15.0 
XX 10.7 171 28 143     
XXI 7.8 9  9     
Total 5.7 6,980 3,456 3,293  4 1 226 12.8 
Note: For the tariff lines subject to TRQs, the in-quota duties are excluded in the calculation. 
 Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on data pr ovided by the Guatem alan authorities. WT/REG349/1 
 
- 31 - 
 
  Chart 3.4 Guatemala: Average of dutiable rates, by HS Chapter 
0510152025
124789 1 0 1 1 1 5 1 6 1 7 1 8 1 9 2 1 2 2 2 3 2 4 2 5 2 7 7 2 7 3 9 3Rate of duty (%)
HS Chapter
MFN Preferential 
Source: WTO estimates based on data prov ided by the Guatem alan authorities. 
3.1.3.5  Honduras 
3.27.  Table 3.11 and Chart 3.5 provide details on Honduras tariff liberalization by HS Section and 
Chapter, respectively. For imports from Mexico, by 2022, 223 tariff lines will still be subject to duty 
in HS sections I (live animals), II (vegetable products), IV (prepared foodstuffs, beverages and tobacco), V (mineral products), XV (base metals and articles thereof), XVII (vehicles, aircraft, 
vessels), XIX (arms and ammunition), XX (miscellaneous manufactured articles) the majority of 
which are in Section I. At the end of the implem entation period of the Agreement, tariffs will 
continue to apply to 23 Chapters. Chart 3.5 shows th at MFN and preferential rates in these Chapters 
will be mostly the same which indicates no prefer ential liberalization of these products, except for 
Chapter 72 (iron and steel), 73 (articles of iron and steel) and 22 (beverages, spirits and vinegar) 
where the preferential rates are, respectively, 7. 8, 6.8 and 0.9 percentage points lower than the 
MFN rate. The highest preferential and MFN rate s for products that remain subject to duty 
correspond to Chapters 19 (preparations of cereal s, flower, starch or milk, 35%), 10 (cereals, 
31.7%), 2 (meat and edible meat offal, 27.6%), 21 (miscellaneous edible preparations, 25%) and 4 (dairy produce, 20.3%). 
Table 3.11 Honduras: Tariff elimination under the Agreement, by HS Section 
HS Section MFN average%  No. of lines MFN 2013  Number of duty-free 
lines Remain dutiable Avg. Final 
Tariff 
(Dutiable) Mexico- 
Northern 
Triangle Mexico-
Central 
America 
2013 2017  2022 
I 13.7 447 45 304   98 24.0 
II 9.1 419 148 238   33 19.4 
III 8.2 57 11 46     
IV 12.4 295 36 227   32 16.7 
V 2.7 187 119 46   22 9.1 
VI 1.8 1,114 908 206     
VII 4.4 336 149 187     
VIII 8.3 108 19 89     
IX 8.5 139 28 111     
X 5.1 292 148 144     
XI 9.6 918 116 802     
XII 12.8 64 3 61     
XIII 6.3 175 80 95     
XIV 6.9 54 15 39     
XV 3.1 700 471 210   19 7.6 
XVI 2.1 978 805 173     
XVII 6.1 234 52 100  81 1 10.0 WT/REG349/1 
 
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  HS Section MFN average%  No. of lines MFN 2013  Number of duty-free 
lines Remain dutiable Avg. Final 
Tariff 
(Dutiable) Mexico- 
Northern 
Triangle Mexico-
Central 
America 
2013 2017  2022 
XVIII 3.8 234 150 84     
XIX 15.0 21   5  16 15.0 
XX 10.7 169 28 139   2 15.0 
XXI 7.8 9  9     
Total 6.0 6,950 3,331 3,310 5 81 223 18.6 
Note: Based on the HS 2012 nomenclature. 
Source:  WTO estimates based from Hondur as authorities and WTO-IDB database. 
Chart 3.5 Honduras: Average of du tiable rates, by HS Chapter 
05101520253035
124789 1 0 1 1 1 6 1 7 1 8 1 9 2 1 2 2 2 3 2 4 2 5 2 7 7 2 7 3 8 7 9 3 9 6Rate of duty (%)
HS Chapter
MFN Preferential 
Source: WTO Estimates based on data from Ho nduras authorities and WTO-IDB database. 
3.1.3.6  Nicaragua 
3.28.  Table 3.12 and Chart 3.6 provide details on Nicaragua's tariff liberalization by HS Section and 
Chapter, respectively. For imports from Mexico, as of 2012 since all liberalization occurs at entry into 
force of the Agreement, 28 tariff lines will still be subject to duty in HS section II (vegetable 
products) and IV (prepared foodstuffs, beverages tobacco). Tariffs will continue to apply to 3 Chapters. Chart 3.6 shows that MFN and preferential rates in these three Chapters will be the same 
which indicates no preferential liberalization of these products. The preferential and MFN rate is 
44.3% for sugar and sugar confectionery (Chapter 17), 15% for edible fruit and nuts (Chapter 8) 
and 14.4% for coffee, tea, mate and spices (Chapter 9). 
Table 3.12 Nicaragua: Tariff elimination under the Agreement, by HS Section
 
HS Section MFN average%  No. of lines MFN 2012  Duty-free in 2012 
under the 
Agreements: 
Remain dutiable Avg. Final Tariff 
(Dutiable) Mexico-
Nicaragua 
Mexico-
Central 
America 
I 15.2 485 45 435 5   
II 9.4 441 148 276 3 14 14.6 
III 9.8 83 9 74    WT/REG349/1 
 
- 33 - 
 
  HS Section MFN average%  No. of lines MFN 2012  Duty-free in 2012 
under the 
Agreements: 
Remain dutiable Avg. Final Tariff 
(Dutiable) Mexico-
Nicaragua 
Mexico-
Central 
America 
IV 12.8 343 39 290  14 44.3 
V 2.8 197 123 72 2   
VI 2.1 1,174 926 241 7   
VII 4.6 360 150 210    
VIII 8.1 111 22 89    
IX 7.9 141 28 113    
X 5.0 312 163 149    
XI 9.6 926 119 807    
XII 12.8 65 2 63    
XIII 6.3 176 80 95 1   
XIV 6.9 54 15 39    
XV 2.9 713 485 228    
XVI 2.5 996 783 209 4   
XVII 6.0 314 77 168 69   
XVIII 3.7 243 159 84    
XIX 12.6 21  21    
XX 10.1 193 43 150    
XXI 7.8 9  9    
Total 6.2 7,357 3,416 3,822 91 28 29.5 
Note: Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on Nicara guan authorities and WTO-IDB database. 
Chart 3.6 Nicaragua: Average of dutiable rates, by HS Chapter  
051015202530354045
89 1 7Rate of duty (%)
HS Chapter
MFN Preferential 
Source: WTO Estimates based on data from Ni caraguan authorities and WTO-IDB database. 
3.1.4  Tariff rate quotas 
3.29.  Annex 3.4 to the Agreement establishes the rules applicable to the tariff rate quotas 
established in the TRP. 21 However, except in the case of Mexico-Nicaragua, there are no dates for 
the removal of TRQs.  
                                               
21 See also Tables A2.1, A2.2 and A2.3 in Annex 2 of this Factual Presentation.  WT/REG349/1 
 
- 34 - 
 
  3.1.4.1  Mexico - Costa Rica 
3.30.  Mexico has an annual tariff rate quota (TRQ) (1 5 million litres) made up of four tariff lines of 
Chapter 4, dairy produce, and one tariff line of Chapter 22, waters containing milk22; and an annual 
TRQ (22,000 metric tonnes) for one tariff line of Chapter 21, prepared foods. There is also an annual 
quota of 2,500 metric tonnes with flexible rules of or igin for two tariff lines of Chapter 72, flat rolled 
products of iron and steel.23 The in quota rate is zero, compared to the MFN rate for out-of-quota 
imports. Costa Rica does not have TRQs under the Agreement. 
3.1.4.2  Mexico - El Salvador 
3.31.  Mexico offers annual TRQs for two tariff lines24 of Chapter 72, iron and steel: 20,000 tons for 
HS 7214.20.01 and 4,000 tons for HS 7216.21.01 AA. The in-quota rate for these two tariff lines is 2.5%. The out-of-quota tariff will be subject to a 40% reduction of the lower of either the MFN in 
force or the base rate. However, the base rate for these products in the TRP is 10%, and the 2012 
MFN tariff is 0%. 
3.32.  El Salvador offers an annual TRQ for CAT (Central American Tariff)
25 1005.90.20, Mexican 
yellow maize, (120,000 metric tons), to which zero duty applies. The MFN rate applies to out-
of-quota imports. 
3.1.4.3  Mexico - Guatemala 
3.33.  Mexico and Guatemala offer each other an annual TRQ (400 metric tonnes) for fresh 
(unripened or uncured) including whey cheese and curd, and other cheese (HS 0406.10 and HS 0406.90, respectively), to which zero duty applies, with yearly increases of 20 tonnes until year ten 
(580 metric tonnes). In year ten, the Parties shall review the quantities for subsequent years, which 
shall not be less than that in year ten. The MFN rate applies to out-of-quota imports. The Parties 
also have fixed annual TRQs (500 metric tonnes) for products containing tuna conditioned in cans of 
1 Kg or less for retail sale, to which zero duty applies. The MFN rate applies to out-of-quota 
imports.
26 
3.34.  Guatemala grants an annual TRQ for CA T 1005.90.20, Mexican yellow maize, (150,000 metric 
tons), to which zero duty applies. The M FN rate applies to out-of-quota imports. 
3.1.4.4  Mexico - Honduras 
3.35.  Mexico and Honduras maintain an annual TRQ (1,250 pieces) for cigars, cheroots and 
cigarillos, containing tobacco, to which zero duty applies, with annual increases of 5%.27 The MFN 
rate applies to out-of-quota imports. 
3.1.4.5  Mexico - Nicaragua  
3.36.  Mexico granted one annual TRQ (5,000 metric tons) made up of two tariff lines 
(HS0204.10.01 and 0402.21.01) for milk in powder or granules until 30 June, 2012, to which zero 
duty applied and the out-of-quota tariff being 8.5% . As of 1 July 2012 these lines became duty free.  
3.37.  Mexico does not grant tariff preferences for sugar under HS Heading 1701.28 However, when 
it needs to import through unilateral quotas, Mexico shall grant 22% of the quota to Guatemala, 
                                               
22 Chapters 4 and 22: 0401.10.01; 0401.2001; 0401.30.01;0404.90.99 and 2202.90.04 (containing milk). 
Chapter 21: 2106.90.99AA (powder for drinks and gelatines with all sugar content originating in Costa Rica or Mexico.  
23 HS 72.10 and 72.12. 
24 HS 7214.20.01 (bars containing indentations or of  a type used for concrete reinforcement) and 
HS 7216.21.01 AA (between1.8 mm and 6.4 thick and not exceeding 12 mm of height). 
25 Sistema Arancelario Centroamericano . 
26 Mexico: HS 1604.14.01; 1604.14.02; 1604.14.03; 1604.14.99; 1604.19.01; 1604.19.02 and 
1604.19.99. Guatemala: CAT 1604.14.10AA; 1604.14.90AA and 1604.19.00AA. 
27 Mexico: HS 2402.10.01. Honduras: CAT 2402.10.00. WT/REG349/1 
 
- 35 - 
 
  10% to Nicaragua, 8% each to El Salvador and Honduras and 5% to Costa Rica. Zero duty will apply 
to these quantities. The rules and conditions for th ese quotas are set out in Appendices 1 and 2 to 
Annex 3.4, respectively, for Mexico-El Salvador, Guatemala, Honduras and Costa Rica; and Mexico - Nicaragua.  
3.38.  Under Annex 3.16 Mexico establishes quotas for goods in HS Chapter 62 with United States 
materials imported from Central America. Preferential  treatment will be limited to an annual quantity 
of 70 million square metres equivalent (SME), wi th three maximum sub-limits as indicated in Table 
A2.2. For calculating the quota quantity and the sub- limits Mexico will use the conversion factors in 
Appendix 1 and 2 to Annex 3.16. The maximum annual quota may be increased to 200 million SME and the sub-limits shall be increased so they represent the same percentage as that of the preceding year's maximum quota. The quota increment will depend on the increment agreed 
between Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua with the United States under 
Appendix 4.1 B to the Free Trade Agreement between the Dominican Republic, Central America and the United States. 
3.2  Rules of origin   
3.39.  Chapter IV of the Agreement covers rules of origin and Chapter V customs procedures relating 
to the origin of goods. Annex 4.3 to the Agreement provides details on specific rules of origin by 
HS Chapter. Annex 4.20 contains the mandate of the Committee for the Regional Integration of 
Inputs (CRII). 
3.40.  In order to determine the value of a product or material, the rules in the WTO Customs 
Valuation Agreement are used. Nevertheless, if there are contradictions, the provisions in Chapter IV 
take precedence over those in the Customs Valuation Agreement.  
3.41.  Pursuant to Article 4.3, products shall be considered as originating when the good is: 
a. wholly obtained or produced entirely in the territory of one or more of the Parties; 
b. produced entirely in the territory of one or more of the Parties exclusively from materials 
that meet the necessary requirements to be considered as originating; 
c. produced in the territory of one or more of the Parties from non-originating materials that 
meet the change in tariff classification (C TC), regional value content (RVC) or other 
requirements, as set out in Annex 4.3, and sati sfy all other provisions of this Chapter;  
d. produced in the territory of one or more of the Parties even though one or more of the 
non-originating materials that are used to produce it do not undergo a CTC because: 
(i) they were imported in an unassembled or a disassembled form but were classified as 
assembled goods; (ii) the products and their parts have been classified in the same heading and this heading is not divided into subheadings; or (iii) the subheading 
corresponding to the product is the same as that corresponding to its parts. For this 
category of product, the RVC should not be less than 50% when the transaction value is 
used and 41.66% when the net cost method is used, unless a different RVC is specified in 
Annex 4.3.
29 
3.42.  A product containing non-originating materials that meet the CTC and other requirements 
specified in Annex 4.3 shall be manufactured entirely in one or more Parties, and the RVC shall have been produced entirely in the territory of one or more Parties (Article 4.3.2).  
3.43.  Article 4.16 refers to products of the automo tive industry. It contains definitions and specific 
rules for calculating the RVC . The list of goods and the list of components and materials to which 
                                                                                                                                                  
28 Appendix 2 of Annex 3.4 applies to 1701.1101; 1701.11.02; 1701.11.03; 1701.12,01; 1701.12.02; 
1701.1203; 1701.91.01 (except those containing added flavouring); 1701.99.01,1701.99.02 and 1701.99.99.  
29 This subparagraph does not apply to Chapters 61 to 63 (Articles of apparel and clothing and other made 
up textile articles). WT/REG349/1 
 
- 36 - 
 
  Article 16 applies are found in Annex 4.16(a) and 4.16(b), respectively. Additionally, Annex 3.15 
contains provisions on marks of origin which shall apply in conformity with Article IX of GATT 1994.  
3.44.  Section B of Annex 4.3 of the Agreement contains specific rules for determining origin, which 
apply when a product has been manufactured in Costa Rica, El Salvador, Guatemala, Honduras, 
Nicaragua, and/or Central America and/or Mexico using non-originating materials. These rules apply 
at the six-digit (subheading) and four-digit (heading) levels. For most products, the CTC must be at the heading or subheading level in order to confer origin. In some cases, however, changes in 
specific headings or subheadings do not confer origin.
30 With respect to certain groups of products, 
there are "notes" that clarify which manufacturing operations or processes confer origin and/or allow the customs authorities to treat the good as originating.
31 For a series of headings and subheadings, 
there is a specific alternative/additional rule requiring a minimum RVC, based on the transaction 
value, of 35%, 40% and mainly 50%.32 There are also supplementary specific rules for certain 
products.33 In some cases the rules of origin, which are applied bilaterally are not the same for all 
Parties, for example, for some products, mainly agricultural products, there are rules of origin 
applicable between Mexico with Costa Ri ca and Mexico with the other Parties.34  
3.45.  As for accumulation (Article 4.8), materials or goods originating in a Party incorporated in the 
territory of another Party shall be considered as originating in the latter. A good is originating when 
it is produced in the territory of one or more of the Parties by one or more producers, provided that 
the good satisfies the requirements established in Article 4.3 of the Agreement. Accumulation shall 
apply when: (i) originating materials used for producing a good in a Central American Party are duty-free between Mexico and the Party producing th ose materials; (ii) when originating materials, 
not included in Annex A to the General Treaty on Central American Integration, used in the 
production of a good in Mexico are duty-free between the importing Central American Party and the Central American Party which produced the said material. Materials that do not satisfy the duty-free 
requirement will be considered materials obtained from a non-party; and (iii) when, under the 
Agreement, there is between the Parties participating in origin accumulation a common rule of origin for the originating materials. Additionally, when the Parties have preferential agreements with 
non-parties, originating goods or materials of a non-party incorporated into a good or material in the 
territory of a Party shall be considered originating in that Party if they comply with the rules of origin established for those goods or materials under the Agreement (Article 4.9).  
3.46.  Annex 3.16 establishes rules for preferential treatment for goods classified in Chapter 62, 
which incorporate materials from the United States of America. Textiles materials used in a good of 
Chapter 62 which is produced in the territory of the United States and would be considered originating under the Agreement if produced in the territory of one or more Parties, will be 
considered to be produced in the territory of the exporting Party. Likewise, textiles material 
produced in the territory of the United States used in the production of textiles material under HS Chapters 50 to 60 and then used to produce a good under HS Chapter 60, which would be 
considered originating under the Agreement if produc ed in the territory of one or more Parties, will 
be considered as produced in the territory of the exporting Party. Origin verification of these goods 
                                               
30 For example, HS Chapters 2, 3, 9, 18, 22-24, 29, 38-41, 72-74, 75, 84, 85 and 90. 
31 For example, agricultural products (vegetables, frui t, forest products , etc.) grown in the territory of a 
Party shall be considered as originating in the territory of that Party if they have been grown from seeds, bulbs, rhizomes, cuttings, shoots or other living parts of plants  imported from a Party or a non-Party. In Chapters 27 
(minerals and fuels), 85 (electrical machinery and eq uipment), 90 (optical, phot ographic, cinematographic 
measuring, medical or surgical instruments) specific definitions and processes are deemed to confer origin. 
32 For example, 35% RVC for HS8701.20 (road tractors for semi-trailers), HS8702-8707 (motor vehicles 
for ten or more persons) and HS8711 (motorcycles); 40% RVC for HS8407-8408 (spark-ignition reciprocating or rotary internal combustion piston engines and compression ignition internal combustion piston engines); and 50% RVC for some products in HS Chapter 16 (preparations of  meat, fish or crustaceans) in addition to the CTC, 
Chapter 29 (organic chemicals) not combined with the CTC requirement except for HS 2941.10 and 2941.90, 
Chapter 30 (pharmaceutical products) in addition to the CTC,  Chapter 33 (essential oils and resinoids) in addition 
to the CTC except for HS3303, Chapter 48 (paper and pa per board) in addition to  CTC except for HS48.10 and 
48.11, Chapter 73 (articles of iron and steel) and 74 (cop per and articles thereof) in addition to the CTC.  
33 For example, clothing and articles apparel (accessories), knitted (HS 6101-6109; 6110.11-6110.20; 
6110.30: 3110.90; 6111-6117), clothing and articles of apparel (accessories), not knitted (HS 6201-6217), other made-up textile articles; games; cloths and rags (HS 6301-6310).  
34 Some products in Chapters 18 (cocoa and cocoa preparations), 19 (preparations of cereals, flour, starch 
or milk), 20 (preparations of vegetabl es, fruit, nuts), 21 (miscellaneous edible preparations) and 22(beverages, 
spirts and vinegar). WT/REG349/1 
 
- 37 - 
 
  will be carried out under the Agreement between the Government of the United Mexican States and 
the Government of the United States of America on  Customs Cooperation Regarding Claims of Origin 
under Cumulation Provisions of Certain Free Trade Agreements of 26 January 2007. 
3.47.  Article 4.6 has a de minimis  rule by which a good shall be considered as originating if the 
value of all non-originating materials used to produce it that do not comply with the 
CTC requirement do not exceed 10%. For HS Chapters 50 to 6335, this percentage refers to the 
weight of the fibres or yarns. For HS Chapters 1 to 27 of the HS36, this clause shall apply if the 
non-originating material is included in a subheading other than that of the good in question. 
3.48.  A Committee on Regional Integration of Inputs (CRII) is established (Article 4.19) to which 
each Party shall appoint two representatives each from the public and private sectors. The Committee shall evaluate whether it is impossible, substantiated by documentary evidence, for a 
producer of goods in the territory of the Parties to  obtain timely supply, in terms of volume, quality 
and price, of the materials used to manufacture the goods listed in Annex 4.20.
37 This Annex may be 
modified at any time by consensus. At the request of a Party or of the Administrative Commission 
the CRII shall initiate an investigation within five days from receipt of the documentation and shall 
take a decision within 30 days (Article 4.21 and 4.22). The CRII once completing the investigation, will decide on the terms and conditions for pref erential treatment for the good under the waiver 
requested. The decision is sent to the Administrative Commission which takes a decision within ten 
days (Article 4.23). In Article 4.25 the Parties undertake to make efforts to establish rules of procedure for the implementation of Articles 4.19 to 4.24 (CRII), which will be approved by the 
Administrative Commission immediately after entry into force of the Agreement. The Parties, have 
indicated that these rules of procedure are still und er discussion. If the CRII does not take a decision 
for lack of consensus, the matter is remitted to the Administrative Commission within five days. If a decision is not taken by the Commission Articles 17.8 to 17.12 and 17.16 to 17.18 of Chapter XVII 
(Dispute Settlement) will apply.  
3.49.  Furthermore, a Committee on Origin, Customs Procedures Relating to the Origin of Goods and 
Trade Facilitation, is established. The Committee shall follow up on the implementation of 
Chapters IV (Rules of Origin), V (Customs procedures relating to origin) and VI (Trade Facilitation). 
Its task shall include making recommendations to  the Administrative Co mmission on matters for 
which it is competent and to try and reach agreement on origin related tariff classification and customs valuation matters, on changes to Annex 4.3 and on changes to the declaration or certificate 
of origin, among others.
38 
3.50.  The Parties shall agree on and publish common guidelines for the interpretation, application, 
and administration of Chapter (IV Rules of Origin Chapter), Chapter V (Customs Procedures Relating 
to the Origin of Goods) and any other chapter of the Agreement. Such guidelines shall be adopted 
by the Administrative Commission and shall be impl emented by the Parties' laws and regulations, 
sixty days after entry into force of the Agreement. The Parties have indicated that the common 
guidelines are still being negotiated. 
                                               
35 Textiles and textile articles. 
36 Live animals and animal products ; animal or vegetable fats and oi ls and their cleavage products, 
prepared edible fats, animal or vegetable waxes; food in dustry products, beverages, sp irits, vinegar, tobacco and 
manufactured tobacco substitutes. 
37 Paper and paper board; articles of paper pulp, of paper or of paperboard, HS4810, 4811, 4821, 4823.20 
to 4823.40, 4823.70 to 4823.90, 4819; Textiles and textile articles, Chapters 50 to 63; Electrical wiring, HS8544.30 and 8544.49. 
38 For the purposes of Chapter V the compet ent authorities are: for Costa Rica, the Servicio Nacional de 
Aduanas  (National Customs Service); for El Salvador, the Dirección General de Aduanas del Ministerio de 
Hacienda  (Directorate General of Customs, Mini stry of Finance); for Guatemala, the Ministerio de Economía  
(Ministry of Economy); for Honduras, the Dirección General de Integración Económica y Política Comercial de la 
Secretaría de Estado en el De spacho de  Desarrollo Económico  (Directorate General for Economic Integration and 
Trade Policy of the Secretary of State for Development); for Mexico, the Secretaría de Hacienda  y Crédito Público  
(Secretary of Finance and Public  Credit) and for Nicaragua, the Dirección General de Servicios Aduaneros  
(Directorate General of Customs Services), or their successors. WT/REG349/1 
 
- 38 - 
 
  3.3  Export duties and charges,  and quantitative restrictions 
3.51.  Except as provided in Annex 3.1439 the Parties shall not maintain any duty, tax or charge on 
the export of goods unless it is also applied for goods destined for domestic consumption (Article 3.14). In certain circumstances
40 they may however adopt or maintain a temporary duty, tax 
or charge on exports to the other Party for a period of up to a year, or a longer period agreed by the 
Parties. No Party may adopt or maintain any prohibition or restriction on the export or sale for export of any good destined for the territory of the other Party, unless (i) the Agreement provides 
otherwise (Annexes 3.3; 3.9
41 and 3.14 Section A and B); or (ii) the Parties adopt measures in 
accordance with Article XI of the GATT 1994 (i ncluding its interpretative notes), which is 
incorporated into the Agreement (Article 3.9). The Parties reaffirm their rights within the GATT 1994 
framework, which prohibits, in any circumstance s, any form of restriction or export price 
requirement.  
3.52.  The Parties retain their rights and obligations under their national legislations and the WTO 
Agreements on duty drawback, exemption and defe rral programmes (Article 3.5). Consultations are 
contemplated when 25% of the domestic industry is affected. 
3.4  Regulatory provisions on trade in goods 3.4.1  Standards 
3.4.1.1  Sanitary and phytosanitary measures 
3.53.  Chapter VIII of the Agreement concerns sa nitary and phytosanitary (SPS) measures and is 
based on the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) which is incorporated as an integral part of the Agreement (Article 8.3). The 
Parties' rights include adopting, maintaining or applying any SPS measure in their territories, even 
measures that are stricter than any international measure, standard, guideline or recommendation, provided there is scientific justification for doing so  and only to the extent necessary to secure an 
appropriate level of SPS protection. They shall not apply measures which would constitute a 
disguised restriction to trade (Article 8.5). 
3.54.  Article 8.6 provides that upon request fr om the exporting Party, the importing Party shall 
treat a SPS measure as equivalent even when it is different from its own where the exporting Party 
provides objective evidence to demonstrate that  the measure achieves an appropriate level of 
protection. The Parties will enter into consultations to achieve such recognition based on international standards, guidelines or recommendations and the SPS Agreement. 
3.55.  On risk assessment, in addition to Article 5 of the SPS Agreement, factors to be used in risk 
assessment of a good, including food additives and ph ysical, chemical and biological hazards, include 
the existence of pests and diseases and epidemiology, critical points of control in the production 
process, handling, packaging and transport, appl icable quarantine measures and treatment that 
shall satisfy the importing Party on risk mitigation. When a Party requests access for its products the importing Party shall respond within 30 days st ating if risk assessment is needed and what 
                                               
39 Under Annex 3.14 Costa Rica may maintain its exis ting export taxes for bananas, coffee and bovine 
meat. Future legal provisions may not be more restrictive than at entry in to force of the Agreement. Honduras 
has listed bananas for which taxes will be gr adually reduced to US$ 0.04 per exported box. 
40 For example, critical shortage of foods or when es sential quantities of raw ma terial are needed for the 
national industry. 
41 Costa Rica has specified controls on exports of timber  in round logs or worked logs, pursuant to Law Nº 
7575 of 16 April 1996; controls on exports of hydrocarbons (Law Nº 7399 of 3 May 1994) and coffee (Law Nº2762 of 21 June 1961; controls exports of spirits and crude rums (Law Nº 8 of 31 October 1885; and minimum prices for banana exports (Law 7472 of 19 Ja nuary 1995); El Salvador has specified controls on 
exports of waste and scrap of iron, steel, cooper, nickel , aluminium, lead, zinc and tin; Honduras has specified 
broadleaf tropical wood as a product on which export me asures may be adopted or ma intained pursuant to its 
domestic legislation (Decree No.323-98 of 29 December 1998); Nicaragua has specified shrimp and lobster during the reproductive or larval stage, wooden lo gs, and wooden products of mahogany and cedar only; 
Guatemala has specified timber in round logs and sawn ti mber measuring more than 11 centimetres of thickness, 
pursuant to the Ley Forestal (Decree Nº 101 96) of  31 October 1996 and coffee pursuant to the Coffee Law 
(Decree Nº 19 69) of 22 April 1969. WT/REG349/1 
 
- 39 - 
 
  information is necessary for the procedure. The Part ies will agree on a deadline for the conclusion of 
the assessment. The final document will be communicated to the exporting Party. Taking into account the export interests of the Party, the ph ased introduction of a SPS measure or specific 
exceptions are allowed within established deadlines if a Party is able to achieve the appropriate level 
of protection in this manner (Article 8.7). 
3.56.  The Parties recognize pest- or disease-free ar eas and areas of low pest or disease prevalence 
according to the SPS Agreement, the OIE (Office International des Epizooties) and the IPPC 
(International Plant Protection Convention) international standards, guidelines or recommendations 
(Article 8.8). The Committee on SPS established by the Agreement shall establish a procedure to this end. It will also establish control, inspection and approval procedures taking into account Article 8 and Annex C of the SPS Agreement.  
3.57.  As regards transparency (Article 8.10), the Parties endeavour to inform each other at the 
same time as their nationals on their annual or semi-annual work programmes on SPS. They shall notify any proposed SPS regulations, preferably  electronically, as established under the SPS 
Agreement, and shall allow a 60 day consultation period, except in emergency situations, in 
accordance with Annex B to the SPS Agreement.  A Party may request a written report within 
30 days when it considers that an SPS restricts or may restrict its exports or that the measure is not 
based on regular international standards, guidelines or recommendations. Additional notification 
requirements include, changes in the status of animal health such as the occurrence of exotic diseases within 24 hours, changes in phytosanitar y status such as the occurrence of quarantine 
pests within 72 hours, reasons for refusal of a good within seven days and disease outbreaks which 
are scientifically shown to be caused by the consumption of imported foods. Emergency measures 
may also be applied to goods in transit (Article 8.11). Article 8.12 establishes that regulatory cooperation aims at enhancing transparency, promoting compatibility and harmonization.  
3.58.  The Agreement establishes a Committee on Sanitary and Phytosanitary Measures, composed 
of representatives of the Parties in charge of sanitary, phytosanitary and food safety matters. Decisions in the Committee will be taken by consen sus. The Committee examines matters relating to 
the application of the Chapter and is responsible for promoting training and specialization of 
technical staff as well as consulting on matters, positions and meetings of the Parties in international organizations (Article 8.14).
42  
3.4.1.2  Technical barriers to trade 
3.59.  Chapter IX deals with standards, technica l regulations and conformity assessment procedures 
approved by the Parties. Notwithstanding the provisions in this Chapter, the Parties' rights and obligations under the WTO Agreement on Techni cal Barriers to Trade (TBT Agreement) are 
incorporated as part of the Agreement (Article 9.2). The Chapter applies to standards, technical 
regulations and conformity assessment procedures a pproved and applied by the Parties as defined in 
the TBT Agreement (Article 9.5.1), including metrology. It does not apply to SPS measures nor to 
purchase specifications prepared by government bodies for their production and consumption 
requirements (Article 9.5.2). The Parties reaffirm their obligations under Article 4.2 of the TBT Agreement concerning observance of the Code of  Good Practice for preparing, adopting and 
implementing of standards in Annex 3 of said Ag reement. Furthermore, they shall apply the WTO 
TBT Committee's decisions and recommendations adopted since January 1995
43 and promote the 
implementation of ISO/IEC/ 21-1:2005, 21-2:2005 guides, or those that substitute them, when 
adopting international standards. 
3.60.  Whenever possible, the Parties shall accept  the results of conformity assessment procedures 
of the other Parties, even when those procedures  are different from their own, when they are 
satisfied that such procedures offer an assurance of conformity with applicable technical regulations 
or standards equivalent to their own. Non acceptan ce of such results should be substantiated. The 
Parties shall recognize accredit, approve or recognize, in accordance with their domestic legislation conformity assessment bodies located in the territory of other Parties under conditions no less favourable than those accorded to those located in their territory and may enter into negotiations for 
the conclusion of mutual recognition agreemen ts between their conformity assessment bodies, 
                                               
42 See also Section 5.6 (I nstitutional framework). 
43 WTO document G/TBT/1/Rev.9 dated 8 September 2008). WT/REG349/1 
 
- 40 - 
 
  based on the TBT Agreement and the Committee's recommendations. Refusal shall be substantiated 
in both cases (Article 9.8). 
3.61.  Article 9.9 contains provisions on transparency. The Parties shall notify44 any proposed 
technical regulation or conformity assessment procedures, referred to in Articles 2.9, 3.2 5.6, and 
7.2 of the WTO TBT Agreement, preferably by electronic means, through the enquiry point 
established by each Party under Article 10 of such  Agreement, at the same time as notifying the 
WTO; they shall allow at least a 60 day consultation period and consider favourably, if possible, 
requests for extension of this period. Responses to comments shall be published or made available 
to the public. Whenever possible, the Parties sha l l  i n f o r m  e a c h  o t h e r  a t  t h e  s a m e  t i m e  a s  t h e i r  
nationals on their annual or semi-annual work programmes on standards, technical regulations and conformity assessment procedures. The Parties will ensure transparency of their proposed technical 
regulations and conformity assessment procedures and their final texts by publishing them, free of 
charge, in existing or future offi cial web pages open to the public. 
3.62.  The Agreement contains regulatory cooperat ion provisions aiming at increased transparency, 
simplifying implementation of technical regula tions and conformity assessment procedures and 
promoting compatibility and harmonization. The provisions also contain a non-exhaustive list of regulatory cooperation activities (Article 9.10). Th e Agreement also contains provisions on technical 
cooperation (Article 9.11) technical consultations (Article 9.13) and information exchange 
(Article 9.14). 
3.63.  The Agreement creates a Committee on Technical Barriers to Trade whose composition is 
described in Annex 9.12.
45 The Committee shall examine matters related to the application and 
administration of this Chapter and shall inter alia : study and propose solutions on TBT related 
matters; and facilitate technical consultations.  
3.4.2  Safeguard mechanisms 
3.64.  Chapter VII covers trade defence measures. Section A covers bilateral safeguard measures, 
Section B global safeguard measures, Section C antidumping and compensatory or countervailing measures and Section D covers cooperation. 
3.65.  The Parties agree to establish a cooperation mechanism for exchanging non-confidential 
information on cases involving third parties, technical cooperation, etc., between their competent investigating authorities (Article 7.9). 
3.4.2.1  Global safeguards 
3.66.  Under Article 7.7 of the Agreement, the Parties retain their rights and obligations under 
Article XIX of the GATT 1994 and the Agreement on Safeguards. 
3.67.  When adopting global safeguards, each Party shall exclude from such measures imports from 
the other Party, unless they account for a substantial share
46 of total imports and contribute 
                                               
44 The National Competent Authorities are listed in Annex 9.9. For Costa Rica, the Dirección de Mejora 
Regulatoria y Reglamentación Técnica of the  Ministerio de Economía ; for El Salvador, the Ministerio de Economía , 
through the Dirección de Administración de Tratados Comerciales ; for Guatemala the Ministerio de Economía , 
through the Dirección de Administración del Comercio Exterior ; for Honduras, the Secretaría de Estado en los 
Despachos de Industria y Comercio , through the Dirección General de Integración Económica y Política 
Comercial ; for Mexico, the Secretaría de Economía , through the Dirección General de Normas ; and for Nicaragua, 
the Ministerio de Fomento, Industria y Comercio , through the Dirección de Normalización y Metrología . 
45 For Costa Rica, the Ministerio de Comercio Exterior , through the Dirección General de Comercio 
Exterior ; for El Salvador, the Ministerio de Economía , through the Dirección de Administración de Tratados 
Comerciales ; for Guatemala the Ministerio de Economía , through the Dirección de Administración del Comercio 
Exterior ; for Honduras, the Secretaría de Estado en los Despachos de Industria y Comercio , through the 
Dirección General de Integración Económica y Política Comercial ; for Mexico, the Secretaría de Economía , 
through the Subsecretaría de Comercio Exterior ; and for Nicaragua, the Ministerio de Fomento, Industria y 
Comercio , through the Dirección de Normalización y Metrología . 
46 Such imports shall not normally be considered substantial if this Party is not among the top five 
suppliers of the good in question, measured in terms of import share during the most recent three-year period (Article 7.7.3(a)). WT/REG349/1 
 
- 41 - 
 
  significantly to serious injury or threat thereof caused by these imports.47 In determining serious 
injury or threat thereof, account will be taken of changes in the Party's share  in total imports and 
the level of such imports. No Party shall apply to the same good and in the same period a bilateral safeguard measure and a measure under Article XIX of the GATT 1994 and the Agreement on 
Safeguards. Except for paragraphs 7.7.2 to 7.7.4 containing the provisions on procedures for the 
adoption of global safeguard measures, Chapter XVII (Dispute Settlement) of the Agreement does 
not apply to this Section .  
3.4.2.2  Bilateral safeguards 
3.68.  During the transition period
48 the Parties may take a bilateral safeguard measure if, as a 
result of the reduction or elimination of a duty, a good originating in a Party is being imported into the other Party in such quantities in absolute terms or in relation to domestic production, and under 
such conditions that it constitutes a substantial cause of serious injury, or threat thereof, to the 
domestic industry producing a like or directly co mpetitive product. In such cases, the importing 
Party may suspend the future reduction of any tariff or increase the tariff on the good to a level not 
exceeding the MFN rate in effect at the time the measure is taken or on the day immediately 
preceding the date of entry into force of the Agreement, whichever is lesser. Bilateral safeguard may not be applied to goods subject to TRQs. The measure shall be applied for a period not exceeding 
two years (including the period of the provisional safeguard), and under certain conditions may be 
extended for one additional year in accordance with the procedures laid down in Article 7.3. No safeguard measures may be maintained after the expiry of the transition period, except with the consent of the Party against whose good the measure has been taken. A safeguard may be applied a 
second time for a period not exceeding 18 months, provided that a period equivalent to the period 
during which the measure was applied for the first time has elapsed. On termination of the action, the rate of duty shall be the rate that would have been in effect on that date according to the TRP 
for the staged elimination of the tariff. The Parties may not apply a bilateral safeguard before one 
year has elapsed after entry into force of the Agreement (Article 7.2). 
3.69.   A Party may only apply a safeguard following an investigation by its competent authority 
pursuant to the WTO Agreement on Safeguards Articles 3 and 4.2 (a), (b) and (c), which are 
incorporated mutatis mutandis  into the Agreement (Article 7.3).  
3.70.  In critical circumstances where delay would cause damage which would be difficult to repair, 
provisional safeguards may be applied but their duration must not exceed 200 days. Warranties or 
economic resources received under provisional measures shall be promptly refunded or released if 
the application of definitive the measure is not co nfirmed (Article 7.4). The Parties shall notify the 
other Party in writing, through official channels, the initiation of a bilateral safeguard procedure and 
the application or extension of a provisional or definitive safeguard measure. 
3.71.  A Party applying a bilateral safeguard measure shall, after holding consultations, provide 
mutually agreed trade liberalizing compensation in the form of concessions having equivalent trade 
effect or equivalent to the value of the additional duties expected to result from the measure. If no 
agreement on compensation can be reached within 30 days, the Party against whose good the measure is taken may suspend concessions having equivalent trade effects to the safeguard measure taken (Article 7.6).  
3.4.2.3  Special safeguards 
3.72.  A special agricultural safeguard (SAS) mechanism is established in Annex 3.22 between: 
A: Mexico and Guatemala; and B: Mexico and Honduras. It may be applied to products listed in 
Tables A3.1, A3.2 and A3.3. 
3.73.  The SAS may be applied, with the consent of the other Party, when three conditions are 
fulfilled simultaneously: (i) if the weighted average share of a Party's imports, in terms of volume, of 
                                               
47 Imports from a Party shall not normally be deemed to  contribute significantly to serious injury, or the 
threat of serious injury, if the growth  rate during the period in which the injurious surge in imports occurred is 
appreciably lower than the growth rate of total imports fr om all sources over the same period (Article 7.7.3(b)). 
48 Transition period means the tariff reduction period  for each good as set out in the Tariff Reduction 
Programme plus two years, as of the end of the tariff reduction programme for that good. WT/REG349/1 
 
- 42 - 
 
  originating goods from the other Party relative to total imports during the preceding three calendar 
years exceeds the levels specified in the Tables; (ii) the growth of imports exceeds 10% of annual 
average growth rate of the three preceding calendar  years; and (iii) the average annual growth rate 
during the preceding three calendar years is higher than 5%. Guatemala and Honduras may 
however apply the SAS to certain products originatin g in Mexico, without Mexico's consent, until 31 
December 2013, 2014 or 2015, as specified. The SAS shall consist of a tariff increase to the MFN level or to the safeguard duty in the Table, whichever is lower and is not subject to compensation. It 
shall be applied for a period of 12 months and can be extended for another 12 months. It may not 
be applied to goods subject to a bilateral safeguard measure in the same period.  
3.74.  Goods not included in the Mexico-Hondu ras TRP will become subject to the SAS when 
incorporated in the TRP. The terms for the application of the SAS to these goods will be negotiated 
on a case by case basis.  
3.4.2.4  Balance of payments safeguards 3.75.  Under Article 20.6, a Party may adopt or maintain non-discriminatory temporary measures 
that protect its balance of payments when a Party faces serious difficulties or threats thereof which 
cannot be resolved by alternative corrective measures. These measures shall be adopted in conformity with GATT 1994, including the 1979 Decl aration on Trade Measures Taken for Balance of- 
Payment Purposes, the Understanding on the Balanc e-of-Payments Provision of the GATT 1994, The 
GATS and the IMF Agreement. Addi tionally, the Party shall inform the other Party, through the 
Administrative Commission, on the extent and nature  of the difficulties it faces, its economic and 
foreign trade situation, alternative measures, economic policies and the evolution of the situation 
which caused the adoption of measures. 
3.4.3  Anti-dumping and countervailing measures 3.76.  The Parties retain their rights and obligati ons under Articles VI and XVI of the GATT 1994, the 
Agreement on the Implementation of Article VI of the GATT 1994 (Antidumping Agreement) and the 
Agreement on Subsidies and Countervailing Measures . No provision of the Agreement, including the 
provisions of Chapter XVII (Dispute Settlement), shall be construed as imposing any rights or 
obligations on the Parties with respect to antidumping or countervailing measures (Article 7.8). 
3.4.4  Subsidies and State-aid 3.77.  The Parties share the objective of eliminating export subsidies for agricultural products 
multilaterally and will cooperate in the WTO to this  end. As of entry into force of the Agreement the 
Parties shall not grant export subsidies to agricultural goods in their bilateral trade (Article 3.21). 
3.4.5  Customs-related procedures 3.4.5.1  Trade Facilitation 
3.78.  Chapter VI establishes disciplines on trade facilitation according to which (Article 6.2) each 
Party shall publish, including through the internet, its customs legislation, regulations and administrative procedures, make available, to the extent possible through the internet, all forms and 
documents required for import and export of goods and shall inform in advance and provide 
opportunities to interested persons of the other Party to comment on proposed regulations before their adoption. The Parties shall designate one or more enquiry points and shall adopt or maintain simplified customs formalities for efficient clearance of goods (Article 6.3). Each Party shall promote 
the establishment of a single window and of Authorized Economic Operators in accordance with the 
Framework of Standards to Secure and Facilitate Trade (SAFE) of the World Customs Organization and may negotiate their mutual recognition. Furthe rmore, there are provisions on confidentiality, 
expedited shipments, appeal or review procedures and sanctions (Articles 6.7 to 6.10). 
3.79.  Chapter VI also contains best endeavou r clauses on risk management (Article 6.4), 
automation (Article 6.5) and cooperation (Article 6.6). WT/REG349/1 
 
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  3.4.6  Other regulations 
3.80.  There are no other regulations on trade in goods under the Agreement.  3.5  Sector-specific provisions on trade in goods 3.5.1   Agriculture  
3.81.  Section B of Chapter III refers to trade in ag riculture. In case of incompatibility with other 
provisions of the Agreement the provisions of this Section prevail. 
3.82.  In Article 3.19 the Parties recognize that domestic support can be important for their 
agricultural sectors, but may have distortionary effects on production and trade. The Parties may 
apply domestic support measures in conformity with the WTO Agreement on Agriculture but in doing so they shall move towards less trade distorting meas ures that are in conformity with Annex 2 of the 
Agreement on Agriculture. In the case of El Salvador-Mexico, Guatemala-Mexico and 
Honduras-Mexico, Annex 3.19 establishes that domestic support measures that threaten to or cause 
damage to the other Party's domestic production may be subject to investigation under unfair trade practices and compensatory quotas under Chapter VII of the Agreement (Trade Defence Measures). 
3.83.  Concerning domestic food aid, a Party establishing food aid programmes in accordance with 
paragraph 4 of Annex 2 of the WTO Agreement on Ag riculture will ensure that only its consumers 
benefit from such programmes. The Parties may request consultations to ensure compliance and, if 
there is no agreement, the provisions of Annex 3.19 on domestic support, described above, will 
apply.  
3.84.  To ensure transparency the Committee on Trade in Goods shall review all domestic support 
measures at least once a year. 
4  PROVISIONS ON TRADE IN SERVICES 
4.1  Scope and definitions 4.1.  Chapter XI contains rules on investment; Chap ter XII refers to cross-border trade in services 
(CBTS); Chapter XIII covers telecommunications; and Chapter XIV deals with temporary entry of 
business persons. 
4.2.  Chapter XII on cross-border trade in services  covers three of the four GATS modes of supply, 
1 (cross-border supply), 2 (consumption abroad), and 4 (presence of natural persons). Except for 
Articles 12.6 (Market Access) and 12.9 (Domestic Regulation) the Chapter does not include the supply of a service in a Party through investment, as defined in Article 11.1 (Investment).
49 
4.3.  Measures on cross-border trade in services by service suppliers from the other Party include: 
(i) the production, distribution, sale or supply of a service; (ii) the purchase, use or payment of a 
service; (iii) access to and use of distribution and transportation systems in connection with the supply of a cross-border service; (i v) the presence in its territory of  a service supplier from the other 
Party; and (v) the provision of a bond or other form of financial security as a condition for supplying 
a service (Article 12.2). For the purpose of the Agreement the extraction of natural resources, 
electricity generation, refining of crude oil and its derivatives hunting and fishing are not considered 
services.  
4.4.  Chapter XII does not apply to: (i) air services, including domestic and international air 
transportation services, whether scheduled or non-scheduled, and auxiliary services related to air transport services, except for aircraft repair and maintenance services for the period during which an 
aircraft is withdrawn from service, the sale and marketing of air transport and computerized 
reservation systems services; (ii) cross-border financial services; (iii) subsidies or donations accorded by a Party to a State enterprise, including loans, guarantees and insurance supported by 
                                               
49 No provision of Chapter XII, including Articles 12.6 and 12.9, is subject to Section C (Dispute 
Settlement) of Chapter XI (Investment). WT/REG349/1 
 
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  the Government; (iv) government services or functions, such as law enforcement, social 
rehabilitation, pensions, unemployment insurance, soci al security, social welfare, public education, 
public training, health and child care; and v) gove rnment procurement; and (vi) measures affecting 
nationals of a Party seeking access to the employment  market of the other Party, or employed on a 
permanent basis in its territory, or conferring any right on such persons with respect to such access 
or employment. Nothing in the Chapter shall prevent a Party from applying measures to regulate the 
entry of natural persons into, or their temporary stay in, its territory, including those measures to 
protect the integrity of, and to ensure the orderl y movement of persons across, its borders. Visa 
requirements shall not be considered nullification or impairment of the benefits under the Agreement. 
4.5.  Chapter XI on investment covers measures adopted or maintained by a Party in relation to: 
(i) the investors of the other Party
50 for all matters relating to their investment; (ii) investments51 by 
investors of the other Party; (iii) investments by investors of a Party in another Party with respect to performance and environmental requirements  (Articles 11.7 and 11.16, respectively) 
(Article 11.2.1). This Chapter also covers existing investments at entry into force.  
4.6.  It does not apply to: (i) measures adopted or maintained by a Party relating to financial 
services; (ii) measures adopted by a Party to restri ct the participation of investments of investors of 
the other Party in its territory for reasons of public policy or national security; (iii) government 
services or functions, such as law enforcement, soci al rehabilitation services, public education, public 
training, health and child care; or (iv) disputes or claims arising prior to the entry into force of the Agreement or relating to facts that occurred before that date, even if their effects persist thereafter; 
and (v) economic activities reserved for each Party, as listed in Annex III
52 on the economic 
activities reserved for each Party (Article 11.2.3). In case of incompatibility between Chapter XI and another Chapter of the Agreement the other Chapter will prevail. 
4.2  Denial of benefits 
4.7.  A Party may deny benefits in Chapter X (Procurement) to a service provider of the other Party 
where it is established that the service is being provided by an enterprise that has no substantial 
business activities in the territory of the Parties and is owned or controlled
53 by persons of a 
non-party. Benefits under Chapter X may only be de nied after notification and holding consultations 
under Article 17.6 (Consultations).  
4.8.  Pursuant to Article 11.13, subject to noti fication and consultations, a Party may deny the 
benefits in Chapter XI to: (i) an investor of the other Party that is an enterprise of such Party and to 
investments of such investors if investors of a non-party own or control the enterprise and the enterprise has no substantial business in the other Party; (ii) an investor of the other Party that is 
                                               
50 Article 11.1 (Definitions) of the Agreement defines "investor of a Party" as a Party or State enterprise 
thereof, or a national or an enterprise of such Party, that seeks to make, is making or has made, as applicable, an investment in the terri tory of the other Party. 
51 According to Article 11.1 of the Agreement, "investm ent" means any kind of asset owned or controlled, 
either directly or indirectly, by an investor of a Party, established or acquired in conformity with the national laws and regulations of the Party in whose territory the investment is made, which has the characteristics of an investment, including characteristics such as the commitme nt of capital or other resources, the expectation of 
gain or profit, or the assumption of risk. 
52 Costa Rica has listed: Importation, refining, distribution and wholesaling of crude oil, its fuels, asphalt 
and gasoline; production of alcohol; postal services; wire and wireless communication services; electric power; 
water supply, collection and disposal of sewage and industrial effluents, aqueduct services; social services; 
administration and distribution of lo ttery services: railroad, ports and airp ort services. El Salvador has listed: 
currency issue; postal services. Guatemala has listed: currency issue; collection centres, wholesale terminals, municipal markets and similar. Honduras has listed: electric power; lotteries; environmental services; 
communications services - postal services; the arms in dustry; the exploitation of airport services; currency 
issue; telecommunications services. Nicaragua has listed : postal services; telecommunications; energy; airports; 
natural resources; water supply and sewage ; map drawing; lotteries; ports. Mexico  has listed: oil, other 
hydrocarbons and basic petrochemica l industry; electricity; nuclear energy and treatment of radioactive 
minerals; telegraphic servic es; radiotelegraphic services; postal se rvices; currency issue and coin minting; 
control, inspection and surveillance of terrestrial and maritime ports; control inspection and surveillance of airports and heliports. 
53 Owned and controlled shall be interpreted mutatis mutandis  as defined in GATS Article XXVIII (n). WT/REG349/1 
 
- 45 - 
 
  an enterprise of such Party and to investments of such investors if investors of the denying Party 
own or control the enterprise and the enterprise has no substantial business in the other Party. 
4.9.  Subject to notification and consultations, a Party may deny the benefits in Chapter XII to a 
service provider of the other Party where it is established that the service is being provided by: 
(i) an enterprise owned or controlled by persons of a non-party that has no substantial business 
activities in the territory of the other Party; or (ii) an enterprise owned or controlled by persons of the denying Party that has no substantial business activities in the territory of the other Party 
(Article 12.12).  
4.3  General provisions on trade in services 4.3.1  Market access 4.10.  Under Article 12.6 the Parties shall not mainta in or adopt, either on the basis of a regional 
subdivision or on the basis of its entire territory, measures that restrict: (i) the number of service 
suppliers; (ii) the total value of service transactions or assets; (iii) the total number of operations or the quantity of service output expressed in numerical units
54; and (iv) the total number of natural 
persons that may be employed or are directly relate d to the supply of a specific sector, in the form 
of quotas, economic needs test requirements or  monopolies and exclusive service suppliers or 
measures that require specific types of legal entities or joint venture through which a service may be 
supplied. The Parties list their restrictions on market access through existing or future 
non-conforming measures in their Schedules annexed to the Agreement. 
4.3.2  National treatment and MFN  4.11.  Each Party shall accord to services and services providers of the other Party treatment no less 
favourable than it accords under similar circumstance s to its own like services and service providers. 
This can be achieved through formally identical or formally different treatment. Formally identical or different treatment shall be considered less favourable if it modifies competition in favour of its own 
services or service providers (Article 12.4). 
4.12.  Each Party shall accord to services and services providers of the other Party treatment no less 
favourable than it accords under similar circumstances to like services and services providers of a 
non-party (Article 12.3). The provisions of Chapter XII (Cross-border Trade in services) shall not be 
construed as to prevent any Party from conferring advantages to adjacent countries in order to facilitate exchanges limited to contiguous frontier zones, of services that are both locally produced 
and consumed. 
4.3.3  Local presence 
4.13.  Pursuant to Article 12.5 of the Agreement, no Party may require a service provider of the 
other Party to establish or maintain a representative office or any form of enterprise, or to be 
resident in its territory, as a condition for the cr oss-border supply of a service. Nevertheless, the 
non-conforming measures set out in the Parties' Schedules in Annex I (reservations and exceptions) for existing measures and in Annex II (reservations in respect of future measures) to the Agreement 
may require local presence. 
4.3.4  Performance requirements 4.14.  Paragraph 1 of Article 11.7 lists the requirements which no Party may impose in connection 
with the establishment, acquisition, expansion, ma nagement, conduct or operation of an investment 
of an investor of the other Party or of a non-party in its territory. They are: (i) to export a 
percentage of their goods or services; (ii) to achieve a given level or percentage of domestic content; (iii) to purchase, use or grant a preference  to goods produced or services provided in its 
territory, or to purchase goods or services from persons in its territory; (iv) to relate the volume or 
value of imports in its territory to that of exports or the inflow of foreign exchange associated with the investment; (v) to restrict sales of goods or services in its territory that such investment 
                                               
54 It does not cover measures which limit  inputs for the su pply of services. WT/REG349/1 
 
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  produces by relating such sales to the volume or value of its exports or foreign exchange earnings; 
(vi) to transfer technology, a production process or other proprietary knowledge to a person in its 
territory, except to remedy violations of national laws on competition or in conformity with TRIPS Articles 31 and 39; or (vii) to act as exclusive supplier. 
4.15.  No Party may condition the receipt or continued receipt of an advantage in connection with an 
investment on compliance with the performance requirements stipulated in paragraph 1 of Article 11.7. This shall not be construed to prevent a Party from conditioning an advantage on 
compliance with a requirement to locate production , provide a service, train or employ workers, 
construct or expand particular facilities, or carry out research and development. Article 11.7 does not in general apply to the measures set out in Annexes I or II to the Agreement. 
4.16.  The prohibition of most performance requirements shall not apply to: (i) qualification 
requirements for goods or services with respect to export promotion and foreign aid programmes
55; 
(ii) government procurement56; or (iii) the requirements imposed by an importing Party with regard 
to the content of a good required to qualify it for preferential tariffs or quotas57 (Article 11.7.6-8). 
4.17.  Furthermore, exceptions are provided to enable the Parties to adopt measures, including 
environmental measures, necessary to secure compliance with laws and regulations that are consistent with the Agreement, or to protect human, animal or plant life or health, or measures 
necessary for the conservation of living or non-living non-renewable natural resources 
(Article 11.7.5). 
4.3.5  Senior management and boards of directors 4.18.  No Party may require that an enterprise, that is an investment of an investor of the other 
Party, appoint to senior management positions individuals of any particular nationality. 
Nevertheless, a Party may require that a majority of  the members of the governing body or board of 
directors be of a particular nationality or resident in the territory in question, provided that the 
requirement does not materially impair the ability of the investor to exercise control over its 
investment (Article 11.8). This provision shall be interpreted in conjunction with Annexes I and II on non-conforming measures (Article 11.9) and does not apply to procurement by a Party or subsidies 
or grants provided by a Party, including government supported loans, guarantees and insurance. 
4.3.6  Movement of natural persons 4.19.  The temporary entry of business persons
58 is governed by Chapter XIV of the Agreement.  
4.20.  The Chapter reflects the preferential trading relationship between the Parties, the desirability 
of facilitating temporary entry in conformity with national laws and regulations and of establishing 
transparent criteria and procedures to this end, as well as the need to ensure the security of borders 
and protect the national workforce and permanent employment in their territories (Article 14.2). 
Each Party shall grant temporary entrance to bu siness persons, covered by Annex 14.3 (Categories 
of Business Persons) and Appendices 1 (Activities of Business Visitors) and 2 (Existing Immigration 
Measures) to Annex 14.3, who are qualified for entry under applicable measures relating to 
immigration, public health and safety and national security. A visa requirement as such shall not be 
considered as nullifying or impairing the benefits of Chapters XI (Investment) and XII (Cross-border Trade in Services). The Parties shall limit fees for processing applications to the approximate cost of the services rendered. A Party may deny tempor ary entry where it would adversely affect the 
settlement of any labour dispute that is in progress or the employment of any person who is 
involved in such a dispute. If a Party refuses to issue an immigration document authorizing activity or employment, it shall inform the business person concerned in writing of the reasons for the 
refusal and, upon request, shall notify the other Party. 
                                               
55 Article 11.7.1.(a),(b) and (c), and 11.7.3.(a)and(b). 
56 Article 11.7.1.(b),(c),(f),(g) and 11.7.3. (a) and (b). 
57 Article 11.7.3.(a) and (b). 
58 Business person: national of one Party who is engage d in trade in goods, the provision of services or 
the conduct of investment activities. WT/REG349/1 
 
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  4.21.  Annex 14.3 contains commitments made by the Parties to facilitate the temporary entry of 
business persons who otherwise comply with existing immigration measures applicable to temporary entrance and are categorized as: (i) business visitors
59; (ii) traders and investors; and 
(iii) intra-company transferees. 
4.22.  The Parties may not require labour certification tests or other procedures of similar effect as a 
condition for granting temporary entry or impose or maintain any numerical restriction with regard to the three categories of business persons cove red. Nevertheless, they may require a business 
person seeking temporary entry into the country to obtain a visa or its equivalent prior to entry. The 
Parties shall consider the possibility of elimin ating the requirement for a visa or equivalent 
document.  
4.23.  Recourse to dispute settlement is not permi tted with regard to a refusal to grant temporary 
entry under Chapter XIV, unless the matter involves  a recurrent practice and the business person 
concerned has exhausted the relevant administrative remedies. 
4.24.  The Parties establish the Committee on Temporary Entry of Business Persons comprising 
representatives of the Parties as listed in Annex 14.6.
60 The functions of the Committee include the 
development of measures to further faci litate temporary entry under Chapter XIV. 
4.3.7  Other measures on investment 
4.25.  Each Party shall accord to investments of investors of another Party treatment in accordance 
with international common law, including fair and equitable treatment and full protection and security. The minimum level of treatment accorded to foreigners refers to all international common law principles for protecting of foreigners' economic rights and interests (Article 11.3). Additionally, 
each Party shall accord to investors of another Party, and to their investments, non-discriminatory 
treatment with respect to measures it adopts or maintains relating to losses suffered by investments 
in its territory owing to armed conflict or civil strife (Article
 11.6).  
4.26.  The Parties may not adopt measures in relation to investments of their investors aiming at the 
extraterritorial application of their national legislation or at impairing trade between the Parties or between a Party and a non-party (Article 11.15). Under Article 11.14 subrogation is recognized with 
respect to payments for compensation relating to an investment. The subrogated or transferred right 
or claim shall not be higher than the investor's original right or claim.  
4.27.  Nothing in the investment Chapter shall be construed to prevent a Party from adopting, 
maintaining or enforcing any measure that it considers appropriate to ensure that investment in its 
territory is undertaken in a manner sensitive to environmental concerns. The Parties recognize that 
it is inappropriate to encourage investment by relaxing domestic health, safety or environmental measures. Accordingly, a Party should not waive or otherwise derogate from such measures as an 
encouragement for the establishment, acquisition, expansion or retention in its territory of an 
investment. If a Party considers that another Party has offered such an encouragement, it may request consultations (Article 11.16).  
                                               
59 The temporary entry is designed in particular for bu siness visitors in the following fields: research and 
scientific activities; meetings and consultancies; cultivation, manufacture and production; marketing; sales; after-sales services; and general se rvices (Appendix 1 to Annex 14.3). 
60 For Costa Rica, the  Ministerio de Co mercio Exterior, the Ministerio de Trab ajo y Seguridad Social , the 
Dirección General de Migración y Extranjería ; for El Salvador, the Dirección General de Migración y Extranjería , 
the Ministerio de Justicia y Seguridad Pública ; for Guatemala, the Ministerio de Economía , the Ministerio de 
Trabajo , the Ministerio de Relaciones Exteriores and the Dirección General de Migración ; for Honduras, the 
Secretaría de Estado en el De spacho de Desarrollo Económico, the Secretaria de Estado en los Despachos de 
Trabajo y Seguridad Social  and the Dirección General de Migración y Extranjería ; for Mexico, the authorities in 
charge of migration; for Nicaragua; the Ministerio de Fomento, Industria y Comercio ; the Dirección General de 
Migración y Extranjería  and the Ministerio del Trabajo ; and any other entity whose participation is considered 
necessary. WT/REG349/1 
 
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  4.4  Liberalization commitments 
4.4.1  Mexico 4.28.  In Annex I Mexico lists 49 reservations with respect to existing measures, 6 of which are 
horizontal. In Annex II it lists 8 reservations for the future of which 3 are horizontal. Additionally, in 
Annex III Mexico lists 9 activities reserved for the State. 
4.29.  The following sections relate to horizontal commitments and sector-specific commitments and 
their liberalization. 
4.4.1.1  Horizontal commitments 
4.30.  Compared to its GATS schedule, Mexico's horizontal commitments under the Agreement are 
deeper. In the Agreement, Mexico expands its co mmitments in modes 3 and 4, while maintaining a 
few restrictions
61 which, in most cases, echo those in the GATS schedule. With respect to modes 
3 and 1, the Agreement (I-MX-4) states that the Comisión Nacional de Inversiones Extranjeras62 
(CNIE) may, according to specific criteria, authorize foreign investment (acquisition or 
establishment) in restricted activities indicated in the List of Reservations.63 T his  d iffe rs  f rom the  
GATS, which permits foreign investment in activities reserved for Mexican nationals (and therefore 
restricted) but only through neutral shares (i.e. shares with no voting rights or with limited 
corporate rights) and with prior authorization. The Agreement also allows (without prior 
examination) foreign investments of up to 49% in a Mexican company operating in an unrestricted 
sector, if the total value of the company's gross assets does not exceed the applicable threshold 
(US$150 million) (I-MX-5).64 In another reservation (I-MX-1), the Agreement limits the acquisition 
by foreigners of land and water in  Mexico which, though it mirrors the GATS, allows foreign nationals 
or enterprises to acquire through trusts, rights to use, enjoy and receive the profits of the profitable 
use of real estate in the restricted zone regardless of the purpose for which it is used. These acquisitions require the Secretaría de Relaciones Exteriores'  (SRE) authorization. The duration of the 
trust will not exceed 50 years, which may be re newed on request by the interested party. With 
respect to mode 4, the Agreement grants temporar y entry to a broader category of business persons 
(i.e. business visitors, investors and intra-comp any transferees). In the GATS, market access and 
national treatment commitments for temporary entry concern only natural persons who are directly 
responsible for the sale of a service, and executives, managers or specialists transferred within the same company. In addition, the Agreement applie s nationality requirements to micro-industry 
enterprises and to the staff of Mexican cooperative production enterprises (I-MX 6 and 7). The 
Agreement, like the GATS, also specifies that posi tions related to the functioning and management 
of ships, aircrafts and trains are reserved for Mexican nationals. 
4.31.  Regarding exemptions to the MFN provisions under the GATS, Mexico listed two 
tourism-related activities: the supply of road transport services by foreign providers is reserved for 
vehicles from the United States, and a tax reduction for expenses incurred in Mexican territory for individuals attending tourism business conventions al so apply only to United States individuals. 
4.32.  Horizontal reservations on future measures apply to any measure: (i) restricting the 
acquisition, sale or other disposition of bonds, treasu ry bills or any other kind of debt security issued 
by the federal, state or local governments; (ii) according rights or preferences to socially or economically disadvantaged groups; or (iii) on market access which are not incompatible with its 
GATS obligations (not applicable to services listed in Annex I). Reservation II-MX-1 on bonds, 
treasury bills or other kind of debt security restrains Mexico's commitments in sector 7.i under the GATS Schedule (WTO document S/DCS/W/MEX).  
                                               
61 Under the GATS, Mexico made horizontal commitments in all four modes. Full commitments are made 
in modes 1 and 2, while in modes 3 and 4 commitments are limited. 
62 National Commission on  Foreign Investments.  
63 Restricted sectors are all those activities which appear in the list of State-reserved activities. Such 
activities are restricted to foreign investors as well as Mexicans. Furthermore, the list of reservations includes the sectors restricted to foreign participat ion under the Law on Foreign Investment. 
64 Unrestricted sectors are those which do not appear in the list of reservations. WT/REG349/1 
 
- 49 - 
 
  4.4.1.2  Sector-specific commitments 
4.33.  In Table 4.1 sectoral liberalization under the Agreement is compared with that in Mexico's 
GATS Schedule. The table indicates whether the sectoral commitments under the Agreement for a particular subsector (except as indicated in the horizontal reservations of the Agreement) are 
improved or the same as under the GATS. Account is however taken of the horizontal national 
treatment reservation by which a favourable resolution of the CNIE is necessary for foreign investment participation exceeding 49% in a Mexican company operating in an unrestricted sector if 
the total value of the Mexican company's gro ss assets exceeds the applicable threshold 
(US$150 million) (I-MX-5).  
Table 4.1 Mexico: Sectoral liberalization under the Agreement, excluding mode 4 
Sector (CPC Classification) GATS Free Trade Agreement 
Sectoral commitments 
(except as indicated in 
the horizontal 
commitments under the 
GATS) Sectoral commitments 
under the FTA (except 
as indicated in the 
horizontal 
reservations in the 
FTA), as compared 
with those in the 
GATS Provisions 
specifying 
reservations by 
specific sector 
1. Business services  improved  
A. Professional services partial improved I-MX-5,38,39,42 
B. Computer and related serv ices partial minus I-MX-5 
C. Research and development 
services partial improved  
D. Real estate services -- full  
E. Rental/leasing services without 
operators partial improved  
F. Other business services partial improved I-MX-5,8,26,37  
II-MX-5; III-MX-1 
2. Communications services  improved  
A. Postal services -- -- I-MX-25; II-MX-2 
III-MX-3 
B. Courier services partial similar I-MX-25,  
C. Telecommunications services partial similar I-MX-17,19,22,25 
II-MX-2,3,4; 
III-MX-2 
D. Audio-visual services partial  I-MX-9,11,13,15 
E. Other -- full  
3. Construction and related 
engineering services  improved  
A. General construction work for 
buildings partial full  
B. General construction work for 
civil engineering partial improved I-MX-22,26,57 
C.  Installation and assembly work partial improved I-MX-22,26,57  
D. Building completion and finishing 
work -- improved  
E. Other partial improved  
4. Distribution services  improved  
A. Commission agents' services -- full  
B. Wholesale trade services partial improved I-MX-5, 45; III-
MX-1 
C. Retail trade services partial improved I-MX-
5,30,31,32,33,45 
D. Franchising services -- full  
E. Other -- full  
5. Educational services  improved  
A. Primary education services partial similar N-MX-28 
B. Secondary education services partial similar N-MX-28 
C. Higher education services partial similar N-MX-28 
D. Adult education services -- full  
E. Other education services partial full  
6. Environmental services  improved  
A. Sewage services -- full  
B. Refuse disposal services -- full  
C. Sanitation and similar services -- full  WT/REG349/1 
 
- 50 - 
 
  Sector (CPC Classification) GATS Free Trade Agreement 
Sectoral commitments 
(except as indicated in 
the horizontal 
commitments under the 
GATS) Sectoral commitments 
under the FTA (except 
as indicated in the 
horizontal 
reservations in the 
FTA), as compared 
with those in the 
GATS Provisions 
specifying 
reservations by 
specific sector 
D. Other -- full  
7. Financial services65 Not negotiated under the Agreement 
8. Health and social services  improved  
A. Hospital services partial full  
B. Other human health services partial full  
C. Social services -- partial II-MX-7 
D. Other -- full  
9. Tourism and travel related 
services  improved  
A. Hotels and restaurants (including 
catering) partial improved  
B. Travel agencies and tour 
operators services partial improved I-MX-5 
C. Tourist guides services partial improved I-MX-5  
D. Other -- improved  
10. Recreational, cultural and 
sporting services  improved  
A. Entertainment services -- full  
B. News agency services -- improved I-MX-37 
C. Libraries, archives, museums 
and other cultural services -- full  
D. Sporting and other recreational 
services -- full  
E. Other  full  
11. Transport services   I-MX-25,59,64 
A. Maritime transport services -- improved I-MX-63,69,70 
B. Inland waterway transport 
services -- improved I-MX-63,69,70 
C. Air transport services partial improved I-MX-33,47,48,50 
D. Space transport -- full  
E. Rail transport services -- improved I-MX-60,62 
F. Road transport services partial improved I-MX-52,54,55,56 
G. Pipeline transport -- improved I-MX-58 
H. Services auxiliary to all modes of 
transport partial improved I-MX-41,67 
I. Other transport services -- full  
12. Other services not included 
elsewhere  partial improved I-MX-44 
Note: The table shows the commitments undertaken under the GATS and the FTA. Horizontal 
commitments/reservations are not taken into accoun t .  I n  v i e w  o f  t h e  h o r i z o n t a l  n a t u r e  o f  t h e  
commitments in mode 4, only modes 1, 2 and 3 ar e considered. "Improved" means commitments that 
go beyond those in the GATS as regards market access or national treatment in any of these three modes. "Similar" means commitments that do not go beyond the GATS. "Partial" means commitments 
which, under the GATS, are subject to sector-specifi c limitations with regard  to market access or 
national treatment in any of the three modes. --: there are no commitments.  
Source: Schedule of Specific Commitments GATS/SC/56; GATS/SC/56/Suppl.2; GATS/SC/56/Suppl.3 and 
GATS/EL/56 and the relevant sections in Annexes I, II and III to the Agreement. 
4.34.  In Annex III Mexico reserves its exclusive ri ght over petroleum, other hydrocarbons and basic 
petrochemicals; the generation, transmission, transformation, distribution and sale of electricity; 
nuclear power and treatment of radioactive minerals; telegraph, radiotelegraph and postal services; 
issuance of bills (currency) and minting of coinage; and  control, inspection and surveillance of 
maritime and inland ports, airports and heliports. 
                                               
65 Chapters XI and XIII (Financial Services) of the Free Trade Agreement between Mexico and the 
Republics of El Salvador, Guatemala and Honduras and of the Free Trade Agreement between the Government of 
Mexico and the Government of the Republic of Nicaragua, respectively, will remain in force until the Parties agree 
to negotiate common disciplines on fina ncial services under the Agreement. WT/REG349/1 
 
- 51 - 
 
  4.35.  In business services, liberalization is broader. Under the GATS, Mexico has commitments for 
accounting, auditing and book keeping services, architectural, engineering, medical and dental 
services. The nationality condition imposed by the Agreement on medical and dental services is not found in the GATS. Professional services not covered by the GATS commitments are all covered by 
the Agreement but with limitations for some of them such as nationality and reciprocity 
requirements, and a 49% limitation on mode 3. In computer and related services, though the Agreement covers all sectors it has a market access limitation in the carve out for subsidies in 
Article 12.2.2(c) of the Agreement and the 49% limi tation on mode 3 for architectural, engineering 
and data processing services, which is not found in the GATS. For real estate services (with no commitments under the GATS) and rental/leasing services without operators (some subsectors are not bound under the GATS), commitments cover all subsectors. On other business services, foreign 
investment in market research and management consulting services, which have a 100% ceiling 
under the GATS, have been reduced to 49% under the Agreement. On services incidental to agriculture there is a sectoral expansion but also a restriction through "T" shares on land ownership. 
The Authorities indicated that this restriction does apply to the provision of services incidental to 
agriculture. On services incidental to mining Mexico has a national treatment reservation for construction for the transportation of petroleum and its derivatives and for petroleum and gas, 
exploration and drilling works and services, by which risk-sharing contracts are prohibited; prior 
approval of the CNIE is required to exceed 49% of  the ownership of an enterprise involved in non-
risk-sharing contracts for the exploration and drilling works of petroleum and gas wells and construction for the transportation of petroleum an d its derivatives. It also has a reservation (MFN, 
national treatment, local presence) for future measures for petroleum, other hydrocarbons, basic 
petrochemicals, electricity, nuclear energy and treatment of radioactive minerals. Furthermore, petroleum, other hydrocarbons and basic petrochemicals are activities reserved for the State. On 
printing and publishing, foreign investment is limited to 49% for printing and publication of 
newspapers written for Mexican readers, and for distribution in Mexico.  
4.36.  With regard to construction services, sectoral coverage has improved. Commitments under 
the GATS in this sector are unbound. Under the Agreement, there is a national treatment 
reservation for the construction transportation of petroleum and its derivatives and for gas, exploration and drilling works and services, and a (national treatment, MFN, local presence, market access) reservation for telecommunications installations. There is also a (national treatment, local 
presence, market access) reservation on cross-border trade for construction of routes for land 
transportation; a concession is required for which only Mexican nationals and firms qualify. 
4.37.   In communications services, postal telegraphic and radio telegraphic services are reserved 
for the State. With regard to telecommunications se rvices, there is a national treatment reservation 
under the Agreement, mirroring the GATS, by which foreign governments and foreign State enterprises may not invest, directly or indirectly, in Mexican enterprises
66 engaged in 
communications, transportation and other general means of communication activities. On 
telecommunications services non-conforming measures under the Agreement mirror exceptions in GATS commitments. Under the (national treatment, MFN, local presence, market access) reservation 
on investment and CBTS for commercial services a permit issued by the Secretaría de 
Comunicaciones y Transportes
67 (SCT) is required to provide telecommunications services as a 
commercial agency, which only Mexican nationals and enterprises established under Mexican laws may obtain. The establishment and operation of commercial agencies are subject to the relevant 
regulations in force. The SCT will not issue perm its for the establishment of a commercial agency 
until the relevant regulations are issued. International traffic shall be routed through an authorized international port of a concessionaire expressl y authorized by the SCT. On telecommunication 
services and public networks, there is a (nationa l treatment, MFN, local presence, market access) 
reservation on investment and CBTS which sets a 49% equity limit for investors and a concession requirement which only Mexican nationals and enterprises may obtain. A concession granted through a public bid is required to use, profit from, or exploit, frequency bands for specific use of the 
radio-electrical spectrum in Mexico. For telephony, there is a (national treatment, MFN, local 
presence, market access) reservation on investment and CBTS which sets a 49% equity limit for investors in concessionaire Mexican enterprises providing telephony services, telephone booth 
services and telecommunications facilities, except for cellular telephony services for which and a 
favourable decision from the CNIE) is required for a direct or indirect foreign equity participation of 
                                               
66 Enterprises incorporated in Mexico. 
67 Secretariat of Communications and Transport. WT/REG349/1 
 
- 52 - 
 
  more than 49%. There is also a concession requirement which only Mexican nationals and Mexican 
enterprises may obtain. There is partial liberalization on other telecommunication services. Mexico has no commitments in this subsector under the GA TS but has two future CBTS reservations under 
the Agreement, a (MFN, national treatment,  local presence) reservation on maritime 
telecommunication services and a (national treatment, local presence) reservation measure relating 
to the provision of air traffic control, aeronautical meteorology and telecommunications, and other telecommunications services relating to air navigati on services. Mexico has, however, not taken an 
MFN exception for telecommunications services under the GATS. 
4.38.  On audio-visual services, under the GATS Mexico has partial commitments for private 
production and exhibition of films, with a 49% lim it on FDI, a permit requirement and a 30% screen 
time reserved for Mexican films. The permit an d the 30% screen time requirement do not feature 
under the Agreement and the 49% equity ceiling may be raised under certain conditions (I-MX-5). 
Mexico has no GATS commitments for radio and tele vision production and transmission services nor 
for sound recordings or other services. There are no reservations under the Agreement for sound 
recordings and other services. Reservations under the Agreement take the form of nationality and 
performance requirements and apply to radio and television services. For private production and 
transmission of radio programmes (abierto) and transmission and retransmission of television 
programming (abierta), a concession granted by the SCT is required, for which only Mexican 
nationals and Mexican enterprises with a foreigners' exclusion
68 clause qualify. For the production 
and transmission of restricted audio and television programmes through public telecommunications networks a concession granted by the SCT is required for which only Mexican nationals or Mexican 
enterprises qualify. Moreover, there is an equity participation limit of 49%.
69  
4.39.  In distribution services, in general the co mmitments are more extensive than in the GATS. In 
wholesale services, sectoral coverage is broader but there is a limitation of 49% participation in 
mode 3 for wholesale and retail trade for subsectors for which commitments under the GATS 
indicate 100%. This represents a GATS minus situatio n. There is a national treatment reservation in 
mode 3. Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may 
engage in the distribution of liquefied petroleum gas. There is a (local presence, market access) 
reservation in mode 1. A permit is required for the distribution, transportation and storage of natural gas, for which only enterprises in the social sector or corporations ( sociedades mercantiles ) qualify. 
Only Mexican nationals and Mexican enterprises with a foreigners' exclusion clause may acquire, 
establish or operate retail outlets engaged in the sale  or distribution of gasoline, diesel, lubricants, 
oils or additives. There are also national treatment reservations on investment limiting foreign participation to 49% in Mexican enterprises that provide fuel to aircraft, ships and railroad 
equipment and enterprises dealing with explos ives, firearms, cartridges and ammunitions and 
fireworks.  
4.40.  Under the Agreement, education services commitments are more extensive. There is a 
reservation (national treatment) on mode 3 by which foreign equity participation in private 
preschool, primary, secondary and higher education is limited to 49% and a CNIE permit is required, mirroring Mexico's GATS commitments. There are no restrictions for adult education and more sectors are covered under other education services. 
4.41.  Environmental services, for which Mexico has no GATS commitments, are fully liberalized. In 
health related and social services, where Mexico has partial commitments under GATS, under the Agreement the coverage is more extensive with a reservation (national treatment,  local presence,  
senior management and boards of directors (SMBD)) on future measures for social services. Mexico 
reserves the right to adopt or maintain any meas ure with respect to the provision of public law 
enforcement and correctional services, and the foll owing services to the extent they are social 
services for a public purpose: pensions, income security or insurance, social security or insurance, 
social welfare, public education, public training, health, and child care. 
4.42.  For tourism and travel related services, the sectoral scope of the commitments has been 
enlarged as compared to the GATS and covers all types of accommodation. For certain forms of 
                                               
68 Companies in which foreigners may not invest. 
69 Servicios abiertos: transmission of radio programmes and transm ission and retransmis sion of television 
programming to the public in general. 
Restricted audio and television programmes: a public service which involves a cost to the user. WT/REG349/1 
 
- 53 - 
 
  accommodation services (hotel and motel lodgings, holiday centre and holiday home services, letting 
of furnished accommodation, youth hostels and mountain shelters, camping and caravanning sites), travel agencies and tour operators and tourist guides services, foreign participation under mode 3 has been reduced from 100% in GATS to 49% when over US$150 million. 
4.43.  Mexico has no commitments in recreational, cultural and sporting services, under the GATS. 
Under the Agreement this sector is fully liberalized except for a national treatment restriction on mode 3 for newspaper publishing. Investors of another Party or their investments may only own, 
directly or indirectly, up to 49% of an enterprise established or to be established in the territory of 
Mexico engaged in the printing or publication of daily newspapers written exclusively for a Mexican audience and distributed in its territory. 
4.44.  On transport services, under the Agreemen t, there is a national treatment restriction 
(I-MX-25) for mode 3 by which foreign governments and foreign state enterprises may not invest, 
directly or indirectly, in Mexican enterprises engaged in communications, transportation and other general means of communication and a Mexican nationality requirement (I-MX-59) for captains, 
pilots, ship masters, machinists, mechanics and crew members manning vessels or aircraft under 
the Mexican flag, harbour pilots, harbour masters and airport administrators. 
4.45.  Mexico has no commitments for maritime or for internal waterways transport services under 
the GATS. Under the Agreement liberalization covers  these two subsectors but subject to a number 
of limitations. There is a (nat ional treatment and MFN) reservation for investment and CBTS for 
water transport. The operation or exploitation of  high-seas navigation vessels, including transport 
and international maritime towing services is open to ships owners and vessels of all countries on 
the basis of reciprocity, according to international treaties. With the prior opinion of the Comisión 
Federal de Competencia
70 (CFC), the SCT may reserve, totally or partially, certain international 
high--seas freight transportation services, which could only be carried out by Mexican shipping 
enterprises through Mexican-flagged vessels or vessels reputed as such when the principles of free 
competition are not respected or the national economy is affected. Internal navigation is reserved for Mexican ship owners with Mexican vessels. Th e SCT may deliver tempor ary permits to foreign 
ship owners and vessels if there are no interested  Mexican ship owners or adequate Mexican vessels. 
There is a reciprocity and permit requirement for cabotage navigation for foreign ship owners or vessels. The operation and exploitation of internal navigation or cabotage of tourist cruises, dredges and maritime devices for the construction, preservation and operation of ports may be carried out by 
Mexican or foreign shipping enterprises using Me xican or foreign vessels or maritime devices. 
Otherwise, there is a 49% foreign investment limit in the commercial exploitation of vessels for internal and cabotage navigation. A favourable decision by the CNIE is required to exceed this limit 
for vessels navigating the high seas. 
4.46.  Furthermore, there is a (national treatmen t, local presence and market access) reservation 
for modes 3 and 1, by which a favourable decision by the CNIE is required for investors of the other 
Party to own, directly or indirectly, more than 49% of an enterprise, established or to be established 
in Mexico providing port services to vessels for inland navigation such as towing, mooring and tendering and a concession is required to construct and operate, or operate, maritime and inland port terminals, including docks, cranes and relate d facilities. Only Mexican nationals and enterprises 
may obtain such a concession. A permit is required to provide stevedoring and warehousing 
services. Only Mexican nationals and Mexican enterprises may obtain such a permit. Investors of the other Party may only own, directly or indirectly, up to 49% of the ownership interest of a Mexican 
enterprise authorized to act as an integral port administrator or to provide pilotage services for 
internal navigation. 
4.47.  Concerning air transport services, Mexico has no commitments for aircraft repair and 
maintenance or computer reservation services under the GATS but it adds a partial commitment on 
services related to air navigation, i.e., management of airports and heliports, which is not explicitly covered by the GATS Air Transport Annex. The Agreement covers maintenance and repair of aircraft, specialty air services, and computer reservation services but not selling and marketing. Mexico has a 
national treatment reservation for maintenance and repair of aircraft and no reservations for 
computer reservation services. For air navigation services listed under GATS with a 30% foreign 
investment limit, under the Agreement there is a national treatment and market access reservation 
                                               
70 Federal Competition Commission. WT/REG349/1 
 
- 54 - 
 
  and a favourable decision by the CNIE is required  for investors of the other Party to participate, 
directly or indirectly, in more than 49% of the ow nership interest of an enterprise established in 
Mexico engaged in the construction and/or operation of airports and heliports. Specialty air services are not covered by the GATS and they are partially  liberalized by the Agreement with a (national 
treatment and SMBD) reservation limiting foreign investment to 25% of shares with voting rights 
and two-thirds of senior management positions must be occupied by Mexican nationals. Finally, the Investment Chapter of the Agreement covers all air transport but there is a (national treatment, 
SMBD), local presence, market access) reservation which limits foreign investment to 25%. 
4.48.  Mexico does not have GATS commitments for railway transport; it has commitments under 
the Agreement but with (national treatment, loca l presence and market access) reservations on 
modes 3 and 1. A favourable decision by the CNIE is required for investors of the other Party to 
participate, directly or indirectly, in more than 49% of the ownership of an enterprise established in 
Mexico engaged in the construction, operation and exploitation of railroads deemed general means 
of communication, or in the supply of railway transportation public service. When making its 
decision, the CNIE will consider national and technological development and the sovereign integrity 
of the nation. Only Mexican enterprises may obtain a concession to construct, operate and exploit railway transportation services and to provide railway transportation public services. Only Mexican 
nationals and enterprises may obtain a permit to provide auxiliary services: construction of entries, 
crossings, exits and basic infrastructure in railway rights-of-way; installation of advertisements and publicity signs in the railway rights-of-way; and co nstruction and operation of bridges over railway 
lines. Railway crew members must be Mexican nationals.  
4.49.  On land transportation services, under the GATS Mexico has commitments for maintenance 
and repair of road transport equipment with a 49% foreign equity limit. Commitments in land transportation under the Agreement seem to leave no room for foreign participation. There are 
(national treatment, local presence, market access)  limitations on modes 3 and 1. Investors of the 
other Party may not directly or indirectly, hold an ownership interest in an enterprise established in Mexico, engaged in transportation of domestic cargo between points in the Area of Mexico, except 
for packaging and messenger services. A permit is required to provide inter-city  passengers 
services, tourist transportation services and cargo services to or from the Area of Mexico. Only Mexican nationals and enterprises may provide such services. Only Mexican nationals and enterprises with a foreigners' exclusion clause, using Mexican registered equipment that is Mexican 
built or legally imported, and drivers who are Mexican nationals, may provide cargo transportation 
services between points in Mexico. A permit issued  by the SCT is required to provide packaging and 
messenger services. Only Mexican nationals and enterprises with a foreigners' exclusion clause may 
provide local bus services, school bus services and taxi and other collective transportation services. 
A permit is required to establish, or operate, a bus or truck station or terminal. Only Mexican nationals and Mexican enterprises may obtain such a permit. A concession is required to provide 
road and bridge management services and auxiliary services which may only be obtained by Mexican 
nationals and enterprises. 
4.50.  Finally, Mexico has no commitment for pipe -line transport under the GATS. For non-energy 
pipelines, under the Agreement only Mexican nationals and enterprises may obtain a concession to 
construct and operate, or operate, pipeline s carrying goods other than energy or basic 
petrochemicals.
71 For services auxiliary to all modes of transport, commitments are more extensive 
with a (national treatment, local presence, market access) reservation for modes 3 and 1. A 
favourable decision from the CNIE is required for investors of the other Party to own, directly or 
indirectly, more than 49% of an enterprise established in Mexico, providing port services to vessels for inland navigation such as towing, mooring and lightering. Only Mexican nationals and enterprises 
may obtain concessions required to construct and/or  operate, maritime and inland port terminals, 
including docks, cranes and related facilities and permits required to provide stevedoring and 
warehousing services.  
4.51.  With regard to other services not included elsewhere commitments are more extensive under 
the Agreement, with one limitation for representatives of religious associations who must be Mexican 
nationals. 
                                               
71 Petroleum, other hydrocarbons and basic-petrochemicals transportation is an activity reserved to the 
State. WT/REG349/1 
 
- 55 - 
 
  4.4.2  Costa Rica  
4.52.  In Annex I Costa Rica lists 22 reservations with respect to existing measures, 4 of which are 
horizontal. In Annex II it lists 17 reservations for the future of which 4 are horizontal. Additionally, in Annex III Costa Rica lists 9 activities reserved for the State. 
4.53.  The following sections relate to horizontal commitments and sector-specific commitments and 
their liberalization. 
4.4.2.1  Horizontal commitments 
4.54.  Costa Rica's GATS Schedule contains one horizontal restriction on the participation of foreign 
natural or legal persons in the concessions the State may grant with respect to the "land-maritime zone".
72 Under the Agreement, Costa Rica's horizontal non-conforming measures include: (i) a local 
presence reservation by which associations located abroad wanting to act in Costa Rica and foreign 
juridical persons having or wanting to open branches in the territory of Costa Rica, must constitute 
in the country a power of attorney for the branch 's business; (ii) a (national treatment, local 
presence, market access) reservation requiring a co ncession to perform any type of development or 
activity in the land-maritime zone. Such a concession is not granted to foreign nationals not having 
resided in the country for at least five years, enterprises with bearer shares, or domiciled abroad, incorporated in the country solely by foreign nationals, or where more than 50% of the capital 
shares or stocks are owned by foreigners. Within the land-maritime zone, no concession may be 
granted within the first fifty metres of the high tide line, nor in the area between the high and low tide lines. There are restrictions also in the 2000 metre strip of land along the borders with Nicaragua and Panama; (iii) for public works contracts and public works with public services 
contracts, in the case of a tie in the selection parameters, the Costa Rican tenderer shall be awarded 
the contract over foreigners; and (iv) a performance requirement for the sale of products or services in Costa Rica by enterprises operating in a free zone. 
4.55.  Horizontal reservations on future measures apply to any measure: (i) according differential 
treatment to countries under any bilateral or mult ilateral agreement in force or signed before or 
after entry into force of the Agreement, involving aviation, fisheries, or maritime matters, including 
salvage; (ii) on law enforcement and correctional serv ices, and services to the extent they are social 
services established or maintained for a public purp ose such as income security or insurance, social 
security or insurance, social welfare, public education, public training, health, child care, public sewage services, and water supply services; (iii) in  favour of indigenous or disadvantaged groups 
and (iv) in market access which is not incompatible with its GATS obligations (not applicable to 
services listed in Annex I). The same reservations  on future measures are taken by all the Central 
American Parties, except Nicaragua, to the Agreement. 
4.56.  Regarding exemptions to the MFN provisions under the GATS, Costa Rica has listed 
professional services,
73 advertising services, passenger and freight land transportation74 and 
investment promotion and protection agreements. 
4.4.2.2  Sector-specific commitments 
4.57.  Compared to its GATS schedule, Costa Ri ca's sector-specific commitments are broader and 
deeper. For instance, communications services, construction and related engineering services, distribution, recreational, cultural and sporting services, and transport services (except air services), 
for which there are no GATS commitments, are part ially opened under the Agreement. In business 
services, educational services, and tourism and travel related services Costa Rica's commitments under the Agreement are improved compared to its GATS commitments. 
                                               
72 The maritime-terrestrial zone is the 200-metre strip located along the Atlantic and Pacific coast lines of 
Costa Rica, measured horizontally from th e ordinary high tide line. The mariti me-terrestrial zone  also covers all 
islands located within Costa Rican territorial waters. 
73 In some cases, for Guatemala, Honduras, El Salvad or y Nicaragua, the residency requirement does not 
apply. 
74 Central American Integration. WT/REG349/1 
 
- 56 - 
 
  4.58.  In Table 4.2 sectoral liberalization under the Agreement is compared with that in Costa Rica's 
GATS Schedule. The table indicates whether the sectoral commitments under the Agreement for a particular subsector (except as indicated in the horizontal reservations of the Agreement) are improved or the same as under the GATS. 
Table 4.2 Costa Rica: Liberalization by specif ic sector under the Agreement, excluding 
mode 4  
Sector (CPC classification) GATS  Free Trade Agreement 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments under 
the FTA (except for 
those indicated in 
the horizontal 
reservations in the 
FTA), in comparison 
with those in the 
GATS Provisions specifying 
reservations by 
specific sector  
1. Business services  improved   
A.  Professional services  partial  improved  I-CR-5 
B. Informatics and related services  partial  full  
C. Research and development services  -- improved  I-CR-28 
D. Real estate services  -- full  
E. Leasing or rental services without operator  partial  full  
F. Other business services  --  improved  I-CR-25,39   
II-CR-4,6,9,11,16 
III-CR-2 
2. Communications services  improved   
A. Postal services  --  -- II-CR-13; III-C R-2 
B. Courier services  -- full  
C. Telecommunications services  --  improved  I-CR-37; III-C R-2 
D. Audio-visual services  -- improved  I-CR-39; II-C R-4,14  
E. Othe r --  full  
3. Construction services and related 
engineering services   improved   
A. General construction services of buildings --  full  
B. General construction services of civil 
engineering works -- Improved  I-CR-33 
C. Assembly and erection of prefabricated 
constructions  -- full  
D. Building completion and finishing services -- full  
E. Othe r --  full  
4. Distribution services  improved   
A. Commission agents' services  --  full  
B. Wholesale trade services  -- improved  I-CR-36; II-C R-4,15;  
III-CR-1 
C. Retail trade services  --  improved  I-CR-36; II-C R-4,15  
D. Franchising services  -- full  
E. Othe r -- full  
5. Education services  improved   
A. Primary education services  partial  full  
B. Secondary education services  partial  full  
C. Higher education services  partial  full  
D. Adult education services  -- improved  I-CR-31 
E. Other education services  -- full  
6. Environment-related services   -- II-CR-12  
A. Sewage services --  -- III-CR-3 
B. Waste disposal services -- -- II-CR-10 
C. Sanitation and similar services  --  --  
D. Othe r -- --  
7. Financial services Not negotiated under the Agreement 
8. Social and health services   similar  II-CR-2 
A. Hospital services  partial  --  
B. Other human health services -- --  
C. Social services --  --  
D. Othe r -- --  
19. Tourism and travel-related services  improved   
A. Hotels and restaurants (including contract food 
services) partial  improved  I-CR-34 
B. Travel agency services and organization of 
group travel partial  simila r I-CR-22 
C. Tourist guide services partial  improved  I-CR-21 
D. Othe r --  improved  I-CR-33 WT/REG349/1 
 
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  Sector (CPC classification) GATS  Free Trade Agreement 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments under 
the FTA (except for 
those indicated in 
the horizontal 
reservations in the 
FTA), in comparison 
with those in the 
GATS Provisions specifying 
reservations by 
specific sector  
10. Recreational, cultural and sports services   improved   
A. Live event services --  improved  I-CR-41 
B. News agency services -- improved  I-CR-32 
C. Library, archive, museum and other cultural 
services -- improved  II-CR-4 
D. Sports and other recreational services -- 
 improved  
 II-CR-7; III-C R-4 
E. Othe r --  improved  I-CR-33 
11. Transport services  improved   
A. Maritime transport services  --  improved  I-CR-13,42; II-C R-8;  
III-CR-5 
B. Inland navigable waterway services  -- improved  I-CR-42; II-C R-8;  
III-CR-5 
C. Air transport services  partial  improved  I-CR-44; II-C R-18;  
III-CR-5 
D. Space transport  -- full  
E. Rail transport services  --  improved  I-CR-16; II-C R-8;  
III-CR-5 
F. Road transport services  -- improved  I-CR-14,16  
G. Pipeline services  --  full  
H. Auxiliary services for all modes of transport  -- improved  I-CR-13,24; II-C R-8 
I. Other transport services --  full  
12. Other services not included elsewhere -- full  
Note: The table shows the commitments undertaken under the GATS and the FTA frameworks. It does not 
take into account the horizontal commitments/reserv ations. In view of the horizontal nature of the 
commitments in mode 4, only modes 1, 2 and 3 are taken into account. "Improved" means 
commitments that go beyond those in the GATS as regards market access or national treatment in any of these three modes. "Similar" means commitments that do not go beyond the GATS. "Partial" means 
commitments under the GATS that are subject to limita tions in specific sectors with regard to market 
access or national treatment in any of the three modes. --: there are no commitments. 
Source: Schedule of Specific Commitments (GATS/SC /22), supplemented by do cuments GATS/SC/22/Suppl.1 
and GATS/EL/22 and the relevant sections in  Annexes I, II and III to the Agreement. 
4.59.  In Annex III Costa Rica reserves its exclusive right over import, refining, distribution and 
wholesale of crude oil, its derivatives, fuel, asphalt and naphtha; production of alcohol; postal 
services; electricity; wire and wireless services (though concessions may be granted by the 
Legislative Assembly); national railroads, docks and airports (which remain under State control though concessions may be granted by the Legislative Assembly); social services; administration and distribution of lotteries; and water supply, aqueducts, liquid residues disposal, and sewage.  
4.60.  In professional services, there are GATS commitments only in medical and dental services. 
Commitments under the Agreement cover all professional services with one reservation on CBTS and investment covering measures on inter alia  membership in the relevant professional associations, 
nationality, residency, experience and reciprocit y requirements, which mirrors that under the GATS. 
Information and related services and leasing or rental services without operators, for which there are partial commitments in the GATS are fully liberalized under the Agreement. Research and 
development services, for which there are no GATS commitments, there is a (national treatment, 
local presence) reservation on CBTS for bio-prospection and investigation. Real estate services, not covered in the GATS, are liberalized under the Ag reement. Other business services, for which there 
are no GATS commitments, are liberalized with rese rvations for some services. There is a (national 
treatment, performance requirement) reservation on investment for services incidental to fishing 
and a (national treatment, MFN, performance re quirements, local presence and market access) 
reservation on investment and CBTS for advertising services by which mass media and advertising 
services may only be provided by enterprises wi th nominative stock or that are established as 
"sociedades personales ", speakers must be registered and foreign speakers must be residents, as 
well as specific content requirements. There are also reservations for future measures (national 
treatment, MFN, local presence, market access) on  irrigation and draining; a (national treatment, 
MFN, performance requirement, SMBD, local presence, market access) reservation on investment and CBTS for conservation, administration, protection, exploration, extraction and exploitation of natural resources, investigation and security serv ices; a (national treatment, MFN, local presence, WT/REG349/1 
 
- 58 - 
 
  market access) reservation on CTBS for electricity generation, transmission, processing, distribution 
and marketing; and an MFN reservation on inve stment and CTBS for printing and publishing. 
4.61.  Under communications services, for which there are no commitments under the GATS, 
Costa Rica has liberalized courier services; telecommunications services consisting entirely or mainly 
of signal transportation through telecommunications networks have been partially liberalized. 
Wireless services cannot be permanently removed for State ownership but may be supplied by private persons under a special concession. Economic needs tests are required for concessions, 
authorizations or permits. For basic telephone services a special concession is required, while equity 
limits (49%) apply to enterprises that enter into joint ventures with the Costa Rican Electricity Institute and the Public services Company of Heredia. Audio-visual services have been partially liberalized with a (national treatment, MFN, performance requirement, SMBD, local presence, market 
access) future reservation on investment and CBTS for radio and television broadcasting services. 
There is also a future MFN reservation on cultural industries for investment and CBTS, which applies to video or motion picture or sound recording production, distribution, sale or projection. 
4.62.  Construction and related engineering services for which there are no GATS commitments are 
fully liberalized except for a reservation (nationa l treatment, local presence, market access) on 
general construction services on civil engineer ing works for the development of marinas. In 
distribution services, for which there are no GA TS commitments, commission agents', franchising 
and other services are fully liberalized. Wholesale and retailing services are partially liberalized with a future reservation on guns and explosives, a CBTS market access reservation on wholesale and retailing distribution of crude oil and its derivatives;  import and wholesale distribution is subject to a 
State monopoly. Costa Rica reserves the right to limit the number of concessions or permits for 
retail distribution of oil and its derivatives, includin g fuel asphalt, gas and naphtha. Priority will be 
given to concessionaires already supplying the service. Additionally, there is an MFN reservation on 
investment and CBTS for wholesale and retail trade in cultural industries. 
4.63.  Private education services, for which there are partial GATS commitments, are almost fully 
liberalized except for a Costa Rican nationality requ irement for the position of Dean of public para-
university institutions. Environmental services are not liberalized neither under the Agreement nor 
under the GATS. There is no change for health services and Costa Rica reserves the right to adopt or maintain any measure on health services to the extent they are social services established for a public purpose.  
4.64.  In tourism and travel related services, Costa Rica has partial GATS commitments for hotels 
(mode 3 is unbound) and restaurants (food serving services are subject to certain conditions)
75. 
While there are no reservations on investment for hotels nor conditions on food serving services 
under the Agreement, there is a market access rese rvation on CBTS for on the supply of alcohol for 
consumption on the premises. For travel agencies and tour operators, Costa Rica's GATS commitments are unbound for modes 1 and 2, and there is a 49% foreign equity ceiling on mode 3. 
This equity limit has been lifted under the Agreement but there is an investment and CBTS (national 
treatment, performance requirement, market access)  reservation by which Costa Rica reserves its 
right to limit: (i) the number of travel agencies  authorized to operate in Costa Rica based on 
demand for that service; and (ii) incentives for tourism based on its contribution to the balance of 
payment, employment creation, etc. Rural tourism may only be provided by enterprises incorporated 
in Costa Rica and tourist cabotage between two Costa Rican ports is reserved for national flag vessels. Finally, only Costa Rican nationals may apply for tour guide licences under the GATS, while 
Costa Ricans or residents may do so under the Agreement. 
4.65.  Recreational, cultural and sporting servic es for which there are no GATS commitments are 
liberalized under certain conditions, for example, an equal number of foreign and national artists 
requirement for shows; a residency or authorization requirement for foreign journalists to cover 
events in Costa Rica; and an MFN reservation on investment and CBTS in cultural industries; an 
investment and CBTS (national treatment, MFN, performance requirement, SMBD, local presence, 
market access) reservation on lotteries. Lottery administration and distribution services are activities 
reserved for the State. Finally foreign registered ships or their crew may not perform services for 
diving and other sporting activities in Costa Rican waters. 
                                               
75 Such as proving that earnings from the sale of  food amounts to at least 50% of total sales. WT/REG349/1 
 
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  4.66.  Transport services for which there are no GATS commitments, except for a partial 
commitment on air transport services, are partially liberalized with a number of restrictions. Foreign enterprises involved in international multi-modal freight transportation must contract enterprises incorporated in Costa Rica to transport containers and tractor-trailers within Costa Rica. Costa Rica 
reserves its right to grant concessions to supply maritime services in national ports based on 
demand, giving priority to concessionaries already supplying the service. It also reserves the right to adopt or maintain any measure with respect to railroads, ports and airports (MFN, national 
treatment, local presence, market access).  
4.67.  Concerning water transport, there is a (national treatment, local presence, market access) 
reservation on investment and CBTS by which only Costa Rican nationals, national public entities, enterprises constituted and domiciled in Costa Rica, and shipping company representatives can 
register vessels in Costa Rica (except vessels under 50 tons for non-commercial use). Natural 
persons or enterprises established abroad owning on e or more foreign registered vessels located in 
Costa Rica must have an agent or legal representative in Costa. Trade and tourism cabotage 
between Costa Rican ports must be conducted by vessels registered in Costa Rica. Foreign nationals 
who wish to act as captain of a vessel with Co sta Rican registry and flag must post a bond 
guarantee. At least 10% of the crew on Costa Rican registered vessels used for international traffic 
that calls at Costa Rican ports shall be Costa Rican nationals, provided such trained personnel are 
available domestically. 
4.68.  In air transport Costa Rica has a partial commitment for computer reservation services under 
the GATS. The Agreement covers maintenance and repair of aircraft, specialty air services, and 
computer reservation services but does not cover selling and marketing. Computer reservation 
services and maintenance and repair of aircraft are fully liberalized under the Agreement.
76 For 
specialty air services Costa Rica has a future (n ational treatment, MFN, performance requirements, 
SMBD, local presence, market access) reservation on investment and CBTS. It has a (national 
treatment, MFN) reservation on investment in air transport services by which aircraft operating certificates are delivered on the basis of reciprocity and only Costa Rican nationals or enterprises 
may register aircraft in the Registro Aeronáutico Costarricense, to be used for remunerated airborne 
activities. In the absence of agreements or conven tions, certificates for the supply of international 
air transportation shall be issued based on reciproc ity. There is also a 49% foreign equity limit for 
agricultural aviation activities.  
4.69.  Passenger and freight land transportation services, for which there are no GATS 
commitments, are partially liberalized under the Ag reement. There is a (national treatment, MFN, 
market access) reservation on investment and CBTS for passenger transportation, including taxi 
cabs, bus services and tourist transport. Costa Rica reserves the right to limit the number of 
concessions for domestic passenger transportation in automotive vehicles, subject to and economic needs tests. They are granted through bids, and in case of a tie in the selection parameters, the 
Costa Rican supplier is preferred. Permits for international remunerated passenger transportation 
services are granted, based on reciprocity, only to  enterprises incorporated in Costa Rica or those 
that have at least 60% ownership by Central American nationals. These permits do not allow transport between points inside Costa Rica. A permit or concession is also required to supply 
domestic passenger land transportation services.   
4.70.  There is a (national treatment, MFN, SMBD , market access) reservation on investment and 
CBTS for freight transportation. No motor vehicle, trailer, or tractor-trailer with foreign licence plates 
may transport goods within Costa Rica. This prohibition does not apply to those registered in one of 
the Central American countries. Only Costa Rican nationals or enterprises, with 51% of the capital owned by, and with effective control and management with Costa Ricans, may supply motorized 
transportation services within Costa Rica. Foreign enterprises involved in international multi-modal 
freight transportation must contract enterprises incorporated in Costa Rica to transport containers and tractor-trailers within Costa Rica. 
4.71.  Costa Rica reserves the right to maintain a monopoly over the supply of railroad passenger 
transportation. Concessions for passenger and freigh t may be granted if justified by demand for the 
service. Priority will be given to concessionaires already supplying the service.  
                                               
76 In as far as they are not subject to reservations under bilateral or mu ltilateral air tran sport agreements 
in which case they fall under the horizontal reservation II-CR-1. WT/REG349/1 
 
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  4.4.3  El Salvador 
4.72.  In Annex I El Salvador lists 15 reservations with respect to existing measures, 4 of which are 
horizontal. In Annex II it lists 8 reservations for the future of which 4 are horizontal. Additionally, in Annex III El Salvador lists 2 activities reserved for the State. 
4.73.  The following sections relate to horizontal commitments and sector-specific commitments and 
their liberalization 
4.4.3.1  Horizontal commitments 
4.74.  El Salvador's horizontal GATS commitments limit market access on investment and the 
presence of natural persons. To engage in commercial activities foreign companies must: (i) prove they are legally established in accordance with the law of the country in which they are incorporated; (ii) maintain a permanent represen tative with broad powers; (iii) be subject to 
domestic law; and (iv) be registered. Annual remittances of net profits are limited to 50% of 
registered investments, IP rights remittances are free provided they do not exceed 10% of net sales. Small scale trade is reserved for Salvadorans by birth with ceilings established by law: foreigners 
cannot hold positions of administrator, director, manager or representative of small-scale 
enterprises in the trade, industrial or services sector. Unless temporarily authorized otherwise by the Ministry of Labour and Social Security, 90% of personnel must be Salvadorian nationals and their 
wages may not amount to less than 85% of total wages. There is also a national treatment limitation 
for all modes: income, other than dividends, obtain ed in the country by legal persons not domiciled 
in the country is subject to a 20% deduction.  Under the Agreement there are three (national 
treatment, MFN) reservations. First on investment, li ke in the GATS, small scale trade is reserved for 
Salvadorans by birth and to Central American Nationals. Second, on CBTS, the 10% limit on foreign 
personnel is the same as in the GATS but it does not mention salaries. Third, rural land may not be owned by foreign nationals, enterprises incorporated in El Salvador, a majority of whose capital is 
owned by foreign persons, or branches of foreign persons of a country that does not permit 
Salvadorans to own rural land, except land to be used for industrial plants. This reservation has no GATS equivalent. A national treatment reservation on investment, also with no GATS equivalent, 
requires at least 75% of the partners in cooperative production societies to be Salvadoran.
77 
4.75.  Horizontal reservations on future measures are the same as for the other Central American 
Parties (except Nicaragua) to the Agreement (see paragraph 4.56 above).  
4.76.  Regarding MFN exemptions under the GATS, El Salvador has listed all sectors under the 
"Central American exemption clause"78 and financial services in relation with financial integration 
between El Salvador, Honduras and Nicaragua. 
4.4.3.2  Sector-specific commitments 
4.77.  In the Agreement El Salvador deepens GATS commitments and broadens the sectoral 
coverage, except for professional services. 
4.78.  In Table 4.3 sectoral liberalization under the Agreement is compared with that in El Salvador's 
GATS Schedule. The table indicates whether the sectoral commitments under the Agreement for a 
particular subsector (except as indicated in the horizontal reservations of the Agreement) are improved or the same as under the GATS. 
                                               
77 An enterprise not incorporated in El Salv ador is not considered a Salvadoran person. 
78 Central American Integration Agre ement: El Salvador, Guatemala, Ho nduras, Nicaragua and Costa Rica. WT/REG349/1 
 
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  Table 4.3 El Salvador: Liberalization by spec ific sector under the Agreement, excluding 
mode 4 
Sector (CPC classification) GATS  Free Trade Agreement 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments under 
the FTA (except for 
those indicated in 
the horizontal 
reservations in the 
FTA), in comparison 
with those in the 
GATS Provisions specifying 
reservations by 
specific sector  
1. Business services  improved   
A.  Professional services  partial  minus  I-ES-19; II-ES-6  
B. Informatics and related services  partial  full  
C. Research and development services  -- full  
D. Real estate services  --  full  
E. Leasing or rental services without operator  partial  full  
F. Other business services  partial  improved  I-ES-5; II-ES-8  
2. Communications services  improved   
A. Postal services  --  -- III-ES-1  
B. Courier services  -- full  
C. Telecommunications services  partial  full  
D. Audio-visual services  partial  improved  I-ES-7  
E. Othe r --  full  
3. Construction services and related 
engineering services   improved  I-ES-19  
A. General construction services of buildings --  improved   
B. General construction services of civil 
engineering works -- improved   
C. Assembly and erection of  prefabricated 
constructions  -- improved   
D. Building completion and finishing services -- improved   
E. Othe r --  improved   
4. Distribution services  improved   
A. Commission agents' services  --  full  
B. Wholesale trade services  -- full  
C. Retail trade services  --  improved  I-ES-2,13  
D. Franchising services  -- Full  
E. Othe r -- Full  
5. Education services  improved   
A. Primary education services  -- Full  
B. Secondary education services  -- Full  
C. Higher education services  -- Full  
D. Adult education services  -- Full  
E. Other education services  -- Full  
6. Environment-related services   improved   
A. Sewage services --  Full  
B. Waste disposal services -- Full  
C. Sanitation and similar services  --  Full  
D. Othe r partial  Full  
7. Financial services79 Not negotiated under the Agreement 
8. Social and health services   similar  II-ES-4  
A. Hospital services  --  --  
B. Other human health services -- --  
C. Social services --  --  
D. Othe r -- --  
9. Tourism and travel-related services  improved   
A. Hotels and restaurants (including contract food 
services) partial  full  
B. Travel agency services and organization of 
group travel partial  full  
C. Tourist guide services partial  full  
D. Othe r --  full  
10. Recreational, cultural and sports services     
A. Entertainment services --  improved  I-ES-8,10,12  
B. News agency services -- full  
C. Library, archive, museum and other cultural 
services -- full  
D. Sports and other recreational services -- 
  
full  
E. Othe r --  full  
11. Transport services  improved   
                                               
79 Chapters XI (Financial Services) of the Free Trade Agreement between Mexico and the Republics of 
El Salvador, Guatemala and Honduras will remain in force until the Parties agree to negotiate common disciplines on financial services under the Agreement. WT/REG349/1 
 
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  Sector (CPC classification) GATS  Free Trade Agreement 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments under 
the FTA (except for 
those indicated in 
the horizontal 
reservations in the 
FTA), in comparison 
with those in the 
GATS Provisions specifying 
reservations by 
specific sector  
A. Maritime transport services  --  improved  I-ES-14  
B. Inland navigable waterway services  -- improved  I-ES-14  
C. Air transport services  partial  improved  I-ES-16,17  
D. Space transport  -- full  
E. Rail transport services  --  -- II-ES-7  
F. Road transport services  -- -- II-ES-7  
G. Pipeline services  --  -- II-ES-7  
H. Auxiliary services for all modes of transport  -- improved  I-ES-18  
I. Other transport services --  full  
12. Other services not included elsewhere -- full  
Note: The table shows the commitments undertaken under the GATS and the FTA frameworks. It does not 
take into account the horizontal commitments/reserv ations. In view of the horizontal nature of the 
commitments in mode 4, only modes 1, 2 and 3 are taken into account. "Improved" means 
commitments that go beyond those in the GATS as regards market access or national treatment in any of these three modes. "Similar" means commitments that do not go beyond the GATS. "Partial" means 
commitments under the GATS that are subject to limita tions in specific sectors with regard to market 
access or national treatment in any of the three modes. --: there are no commitments. 
Source: Schedule of Specific Commitments (GATS/SC/ 29), supplemented by docu ments GATS/SC/29/Suppl.1; 
GATS/SC/29/Suppl.2; and GATS/EL/29; and the relevant  sections in Annexes I, II and III to the 
Agreement. 
4.79.  In Annex III El Salvador reserves its exclusiv e rights over the issuance of bills (currency) and 
minting of coinage and postal services. 
4.80.  Under the GATS, El Salvador's commitments in legal, accounting, auditing, bookkeeping, 
taxation, architectural and engineering services are limited to certain activities and in certain cases 
only to mode 3. Legal services commitments are limited to legal, advisory and information services for modes 1,2,3; taxation services commitments are limited to business tax planning and tax return 
preparation for mode 3; accounting, auditing and bookkeeping services, are limited to financial 
auditing, accounting review and bookkeeping services , except tax returns for mode 3; architectural 
and engineering services commitments are limited to  advisory, pre-design and design architectural 
services, and advisory and consultative engineer ing services for modes 1, 2 and 3. Under the 
Agreement there is a (national treatment, MFN, performance requirement, SMBD, local presence, 
market access) future reservation on investment and CBTS for all professional services and a (national treatment, MFN, local presence) reservation on investment and CBTS for engineering 
related services. This would represent a GATS minu s situation. Computer and related services and 
rental and leasing services without operators, partially committed, and real estate services, for which there are no GATS commitments, are fully liberalized. Other business services, limited to 
advertising and only for mode 3 under the GATS, are broader under the Agreement with one 
(national treatment, MFN) reservation on CBTS for advertising, limiting
 90% of the production and 
recording commercial advertisements for use in El Salvador's public communications media, that originate in El Salvador, to enterprises organized under Salvadoran law. A commercial advertisement 
produced or recorded by an enterprise organize d under the law of another Central American Party 
may be used in the Salvadoran media, based on reciprocity. This reservation has no GATS equivalent. The broadcast in El Salvador's public media of commercial advertisements for 
international products, brands, or services that have been imported into El Salvador or produced in 
El Salvador under licence is subject to a one-time -fee. There is also a (national treatment, MFN, 
performance requirement, SMBD, local presence, ma rket access) future reservation on investment 
and CBTS for private security services. 
4.81.  In postal services, no commitments are made  as El Salvador reserves the right to adopt any 
measure in this sector in relation with cross-border services or investments. Courier and other WT/REG349/1 
 
- 63 - 
 
  services, for which there are no GATS co mmitments, and telecommunication services80, subject to 
partial GATS commitments, are fully liberalized  under the Agreement. In audio-visuals, El  Salvador 
expands coverage to all the remaining subsectors in which there are no GATS commitments. However, in radio and television services, it adds mode 1 but has a restriction that seems more 
stringent than in the GATS, reserving licences an d concessions to provide such services to its 
nationals and companies incorporated in El Salvador, and applying foreign capital restrictions, while in the GATS, the licences and concessions can be granted to an applicant domiciled in El Salvador.  
4.82.  Construction and related engineering services for which there are no GATS commitments are 
partially liberalized under the Agreement. A (nationa l treatment, MFN, local presence) reservation on 
investment and CBTS, requires foreign enterprises to be associated with a Salvadoran company, 
have a national as a representative and comply with other investment and staff requirements, to 
provide design, consulting and management services  for engineering projects or conduct any work 
related to the construction of such projects. These requirements do not apply to specific projects or 
grants for specialized technical cooperation or when the funds for the project come partially or 
entirely from foreign governments or international organizations. 
4.83.  Distribution services, for which there are no GATS commitments, are fully liberalized under 
the Agreement, except for retail services wher e investment to establish duty free commercial 
centres or establishments in El Salvador's seaports may only be by Salvadorans born in El Salvador 
and enterprises organized under Salvadoran law, the majority of whose capital is owned by Salvadorans. 
4.84.  Educational services for which there are no GATS commitments are fully liberalized under the 
Agreement. In environmental services, El Salvador has partial commitments under the GATS but 
liberalizes the sector and removes the authorization and local presence requirement to provide refuse disposal services relating to cleaning se rvices of exhaust gases, landscape and environment 
protection under "other services". There are no commitments under the GATS nor under the 
Agreement on health related and social services. Tourism and travel related services, for which there are partial GATS commitments, are fully liberalized under the Agreement. 
4.85.  Recreational, cultural and sports services, for which there are no GATS commitments, are 
liberalized, except for entertainment services wh ere foreign artists and circuses are subject to 
authorization and a fee. Their performanc es are limited to 30 days every year.
81 Live shows are 
subject to a domestic participation quota. 
4.86.  On maritime transport, for which there are no GATS commitments, there is a (national 
treatment, local presence) reservation on CBTS re serving cabotage between Salvadoran ports, but 
not between Central American ports, for Salvadoran  flagged vessels and foreign vessels registered 
and flagged in El Salvador, Salvadoran born or nationalized captains and 90% Salvadoran crew. 
There is also a residency requirement for the owner of the vessel and a registration requirement for 
crew members or any other activity in ports jurisdictions. Non-crew sea farers and unionized dock 
workers may provide cargo handling services. For la nd transportation services, for which there are 
no GATS commitments, there is a (national treatm ent, MFN, performance requirement, SMBD, local 
presence, market access) future reservation on investment and CBTS. For air transport services liberalization commitments are broader. Under the GATS, which covers, aircrafts repair and 
maintenance, selling and marketing and computer reservation system services, El Salvador has 
commitments only for aircraft maintenance and repair with concession or licence and residency requirements. The Agreement covers maintenance and repair of aircraft, specialty air services, and 
computer reservation services but not selling and marketing. The supply of specialty air services 
requires prior authorization from the Autoridad de Aviación Civil  which is subject to reciprocity and 
must take into account national air transport policy. On aircraft maintenance and repair, there is a 
reciprocity requirement for validating licenses, certificates, and permits issued by foreign air 
transport authorities to: (i) technical staff supplying aircraft repair and maintenance services while an aircraft is withdrawn from service; and ii) pilots and other technical staff supplying specialty air 
                                               
80 Basic telecommunication services were excluded from its 1994 GATS schedule but partially liberalized in 
its 1997 GATS schedule following the Negotiations on Basic Telecommunications (WTO document GATS/SC/29/Suppl.1). As part of the negotiations outc ome El Salvador adopted the GATS reference paper. 
81 A year from the last performance in the case of fo reign circuses and from th e first performance in the 
case of foreign artists. WT/REG349/1 
 
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  services. There are no restrictions for computer reservation system services but the reciprocity 
requirement does not feature in the GATS commitment on aircraft repair and maintenance. Finally, only Central American nationals may work as customs agents. 
4.4.4  Honduras 
4.87.  In Annex I, Honduras lists 35 reservations concerning existing measures, of which five are 
horizontal. Furthermore, in Annex II, it lists seve n possible future reservations, of which three are 
horizontal. Annex III lists eight sectoral activities reserved for the State. 
4.88.  The following sections refer to Honduras' horizontal commitments by specific sector and to 
their liberalization. 
4.4.4.1  Horizontal commitments 4.89.  Honduras' horizontal commitments under the GATS are on commercial presence and the 
presence of natural persons, to which market access and national treatment limitations and 
conditions apply (economic needs test, training of national personnel, a ceiling of 10% for foreign workers in an enterprise and 15% of wages paid, 10% of total members of trade unions; limitations 
in a 40 km belt in border areas and on small-scale trade). Under the Agreement, horizontal 
limitations concern national treatment, local pres ence and MFN treatment. Only Hondurans by birth 
or companies consisting wholly of Hondurans may buy land in the border area or within a 40 km belt 
along the coast, except for urban land for tour ism purposes, economic or social development, 
certified and approved by the State Secretariat of Tourism. In order to engage in trade, companies established in accordance with foreign laws must have a permanent representative with broad powers in Honduras for all legal acts required and having effect in the national territory. Foreigners 
may not engage in small-scale industry or trade
82, except for naturalized Hondurans, provided that 
there is reciprocity with their country of origin. Lastly, foreign cooperative associations may be established in Honduras subject to authorizat ion by the Honduran Institute of Cooperative 
Associations, provided that there is reciprocity and the foreign cooperative association maintains at 
least one permanent legal representative with broad powers to carry out all legal acts required and having effect in the national territory. 
4.90.  Horizontal reservations on future measures are the same as for the other Central American 
Parties (except Nicaragua) to the Agreement (see paragraph 4.56 above).  
4.91.  MFN exemptions under the GATS, are listed as non-conforming measures in the Agreement 
and related to the Treaty of Central American Integration
83; telecommunication services in relation 
to regional integration in this sector (Guatemala, El Salvador, Nicaragua and Costa Rica); and 
professional and land transport services in relation to reciprocity.  
4.4.4.2  Sector-specific commitments 
4.92.  Honduras' sector-specific commitments are broader in comparison with those in the GATS. 
4.93.  Table 4.4 compares the level of liberalizati on by sector under the Agreement with Honduras' 
GATS Schedule. It indicates whether the sector al commitments undertaken under the Agreement 
concerning a specific subsector (except those indicated in the horizontal reservations in the 
Agreement) are improved or the same as those within the GATS framework.84 
                                               
82 Small-scale industry whose capital does not exceed 150.000 lampiras. 
83 Guatemala, El Salvador, Nicaragua, Costa Rica and Panama. 
84 This factual presentation follows the WTO's Sectoral Services Classification List, which is based on the 
Central Product Classification of the United Nations and contains 12 sectors (WTO document MTN/GS/W/120). WT/REG349/1 
 
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  Table 4.4 Honduras: Liberalization by specif ic sector under the Agreement, excluding 
mode 4  
Sector (CPC classification) GATS  Free Trade Agreement 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments under 
the FTA (except for 
those indicated in 
the horizontal 
reservations in the 
FTA), in comparison 
with those in the 
GATS Provisions specifying 
reservations by 
specific sector  
1. Business services    
A.  Professional services  -- improved  I-HO-13; II-HO-2  
B. Informatics and related services  partial  Full  
C. Research and development services  -- full   
D. Real estate services  -- full   
E. Leasing or rental services without operator  -- full   
F. Other business services  partial  improved  I-HO-7,10,21,22,31  
2. Communications services  partial  improved   
A. Postal services  -- -- III-HO-2  
B. Courier se rvices -- Full  
C. Telecommunications services  partial  Improved  I-HO-11,12;  II-HO-1; 
III-HO-3  
D. Audiovisual services  -- improved   I-HO-10  
E. Othe r -- full   
3. Construction services and related 
engineering services   improved   
A. General construction services of buildings --  improved  I-HO-13  
B. General construction services of civil engineering 
works -- improved   I-HO-13  
C. Assembly and erection of prefabricated 
constructions  -- full   
D. Building completion and finishing services -- full   
E. Othe r --  Full  
4. Distribution services  improved   
A. Commission agents' services  -- Improved  I-HO-9  
B. Wholesale trade services  -- improved   I-HO-15; II-HO-5  
C. Retail trade services  -- improved   I-HO-15  
D. Franchising services  -- Full  
E. Othe r --  full   
5. Education services  improved   
A. Primary education services  -- improved   I-H-16  
B. Secondary education services  -- improved   I-H-16  
C. Higher education services  -- improved   I-H-16  
D. Adult education services  -- full  
E. Other education services --  full  
6. Environment-related services   improved   
A. Sewage services --  -- III-HO-1  
B. Waste disposal services -- -- III-HO-1  
C. Sanitation and similar services  --  -- III-HO-1  
D. Othe r -- full  
217. Financial services Not negotiated under the Agreement 
8. Social and health services   similar  II-HO-3  
A. Hospital services  --  --  
B. Other human health services -- --  
C. Social services --  --  
D. Othe r -- --  
9. Tourism and travel-related services  improved   
A. Hotels and restaurants (including contract food 
services) full full   
B. Travel agency services and organization of group 
travel -- full   
C. Tourist guide services -- full   
D. Othe r --  full   
10. Recreational, cultural and sports services   improved   
A. Live event services --  improved  I-HO-18  
B. News agency services -- improved   I-HO-10  
C. Library, archive, museum and other cultural 
services -- full   
D. Sports and other recreational services -- improved   I-HO-19,20  
 
E. Othe r --  improved  III-HO-1  
11. Transport services  improved   
A. Maritime transport services  -- improved  I-HO-25  
B. Inland navigable waterway services  -- improved  I-HO-25  
C. Air transport services  partial  improved  I-HO-23,24  
D. Space transport  -- full   
E. Rail transport services  -- improved  I-HO-27,29  WT/REG349/1 
 
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  Sector (CPC classification) GATS  Free Trade Agreement 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments under 
the FTA (except for 
those indicated in 
the horizontal 
reservations in the 
FTA), in comparison 
with those in the 
GATS Provisions specifying 
reservations by 
specific sector  
F. Road transport services  partial  improved  I-HO-27  
G. Pipeline services  -- full  
H. Auxiliary services for all modes of transport  -- improved   I-HO-6,30  
I. Other transport services --  Full  
12. Other services not included elsewhere -- full   
Note: The table shows the commitments undertaken under the GATS and the FTA frameworks. It does not 
take into account the horizontal commitments/reserv ations. In view of the horizontal nature of the 
commitments in mode 4, only modes 1, 2 and 3 are taken into account. "Improved" means 
commitments that go beyond those in the GATS as regards market access or national treatment in any 
of these three modes. "Similar" means commitments that do not go beyond the GATS. "Partial" means 
commitments under the GATS that are subject to limita tions in specific sectors with regard to market 
access or national treatment in any of the three modes. -: there are no commitments. 
Source: Schedule of Specific Commitment s (GATS/SC/38), supplem ented by documents 
GATS/SSC/38/Suppl.1; GATS/SSC/ 38/Suppl.2; and GATS/EL/38; GATS/EL/38/Suppl.1; and the 
relevant sections in Annexes I, II and III to the Agreement. 
4.94.  In Annex III, Honduras reserves its exclusiv e right on the transmission of electric power, 
lotteries, environmental services, postal services, retail and wholesale distribution by the arms 
industry, control and supply of auxi liary air navigation services, issuance of bills (currency) and 
minting of coinage; and telecommunication services. 
4.95.  On professional services, for which ther e are no GATS commitments there is a (national 
treatment, MFN, local presence) future reservatio n on CBTS reserving Honduras' right to adopt any 
measure on professional services. There are however no restrictions on investment. In computer 
related services, there is a move from partial sectoral commitments in the GATS to full liberalization. Research and development, real estate services and rental/leasing services without operators, for which there are no GATS commitments, are fully li beralized. Other business services, for which there 
are no GATS commitments are liberalized under th e Agreement with some reservations. There are 
national treatment reservations on investment requiring agrarian reform beneficiaries to be Honduran nationals by birth, individually or organized in peasant cooperatives;
 and allowing only 
Honduran nationals resident in Honduras and enterprises organized under Honduran law and with at 
least 51% ownership by Honduran nationals to engage in commercial fishing in the territorial waters, rivers, and lakes in Honduras. A market access rese rvation on CBTS requires an enterprise to be 
organized as a commercial corporation with nominative stock and to be established in Honduras to 
supply electrical energy distribution services . A (national treatment, SMBD) reservation on 
investment requires foreign private security en terprises to partner with Honduran enterprises 
working in the same field and appoint a Honduran national by birth as a senior manager to be 
established in Honduras. An SMBD reservation on investment allows only Honduran nationals by 
birth to be senior managers of newspapers, including their intellectual, political, and administrative orientation. 
4.96.  In communications services, the operation of  postal services is reserved for the Honduran 
Postal Company; courier services, for which there are no GATS commitments, are fully liberalized under the Agreement. In telecommunications, like in the GATS foreign governments may not directly 
participate in the provision of public telecommunications services. Under the Agreement, there is a 
(national treatment, local presence) reservation on CBTS requiring domiciliation, a legal representative, and authorization by the Regulatory Authority to acquire a 10% or higher equity in 
enterprises having been granted other concessions fo r the same services. This last clause liberalizes 
the GATS limitation. Finally, there is a future reservation on market access by which Honduras 
reserves its right to modify the level of ownership of HONDUTEL
85. Audio-visual services are 
liberalized except for a SMBD reservation on investme nt allowing only Honduran nationals by birth to 
                                               
85 HONDUTEL: Empresa Hondureña de Telecomunicaciones. WT/REG349/1 
 
- 67 - 
 
  be senior managers of free over the air broadcast (radio and television) news media, including its 
intellectual, political, and administrative orientation. 
4.97.  Construction services, for which there are no GATS commitments are liberalized in the 
Agreement, except for a partial (national treatmen t, local presence, market access) reservation on: 
(i) investment in civil engineering, which is limited to construction or consulting domestic enterprise 
at least 70% of whose shares are owned by Honduran  nationals; and (ii) on CBTS for consulting or 
construction, requiring enterprises to be organize d under Honduran law in order to be members of 
the Colegio de Ingenieros Civiles de Honduras  (CICH) and to perform civil engineering projects in 
Honduras. Foreign consulting and construction enterprises may register provisionally with the CICH to perform specific civil engineering projects. Higher membership fees apply to foreign-owned 
enterprises. In addition, foreign workers must be au thorized by the CICH to work on such projects.  
4.98.  Distribution services, for which there ar e no GATS commitments, are partially liberalized 
under the Agreement. There is a national treatment reservation on investment in commission agents' services requiring concessionaries to be Honduran nationals or enterprises with at least 51% 
of capital ownership by Honduran nationals; a national treatment reservation on investment allows 
only Honduran nationals and enterprises organized under Honduran law with at least 51% equity held by Honduran nationals, may be authorized to sell petroleum products; and a (national 
treatment, performance requirement, SMBD, local presence, market access) future reservation on 
investment and CBTS reserving Honduras' right to adopt or maintain any measure on the wholesale distribution of petroleum and petroleum-products.  
4.99.  Education services have been liberalized with partial restrictions on national and MFN 
treatment, local presence and senior managers. A school director or supervisor must be a Honduran 
national by birth. Teachers at all levels of the education system must be Honduran nationals by birth. Foreign nationals may teach particular subjects at the middle and high school levels if there 
are no such Honduran nationals available to teach such subjects. Foreign nationals may teach the 
Constitution, civic education, geography, and the hist ory of Honduras only if there is reciprocity for 
Honduran nationals in their country of origin. Private schools at all levels must be organized under 
Honduran law but there are no restrictions on foreign ownership of such schools. Honduran legal 
persons may also promote the establishment of private universities. 
4.100.  There is no restriction in the Agreement on other environmental services. Tourism and 
travel-related services, for which there are partial GATS commitments, are fully liberalized under the 
Agreement. 
4.101.  Recreational, cultural and sports services, for which there are no GATS commitments, are 
partially liberalized under the Agreement, with restrictions for musicians (national treatment), 
footballers (national treatment and local presence), news agencies (SMBD) and gambling (national 
treatment).  
4.102.  With regard to transport, water transpor t services are liberalized, except for cabotage. 
Cabotage for commercial purposes is restricted to Honduran merchant ships. If these are not 
available, foreign merchant ships, preferably from Central America, are authorized. At least 51% of the capital of a national shipping company must be owned by Honduran nationals and the company must be domiciled in Honduras. Only Honduran flag vessels can undertake commercial fishing in the 
territorial waters of Honduras and only Honduran nationals by birth can be captains of commercial 
fishing vessels. Commitments on air transport services in the two sectors covered by both the GATS and the Agreement (maintenance and repair of airc raft and computerized reservation systems) have 
been improved. In addition, the Agreement covers specialty services which are not covered in the 
GATS, but not sales and marketing which is partially covered in the GATS.
 Private specialty air 
transportation services for remuneration can only be provided by Honduran nationals or enterprises 
organized under Honduran law and must be authorized by the Secretaría de Obras Públicas , 
Transporte y Vivienda . When Honduran personnel are not available, foreign pilots or other technical 
personnel, preferably from Central American countries, may exercise such activities.  Only Honduran 
nationals and enterprises organized under Ho nduran law may supply domestic public air 
transportation services. Such enterprises must be  controlled and at least 51% owned by Honduran 
nationals.  WT/REG349/1 
 
- 68 - 
 
  4.103.  Rail transport services have been liberalized with restrictions (national treatment, SMBD) on 
investment. The Honduran National Railways may only sell its subsidiaries to individual Honduran companies or to companies established under Honduran legislation. The director of the Honduran National Railways must be Honduran by birth. The liberalization of road transport services is 
broader, but with important restrictions (national treatment, MFN treatment, local presence, market 
access) on investment and CBTS. Only Hondurans and companies whose Honduran capital ownership is at least 51% may provide national passenger and freight transport services.
 
A certificate of operation which is subject to an economic needs test is required. A reciprocity requirement applies to international transport and preference is given to Hondurans on certain routes. There is also a quantitative restriction. Pi peline services are liberalized. Auxiliary services for 
all modes of transport have also been liberalized with two reservations: licensed customs agents 
must be Honduran nationals by birth and employees of the customs agent, who act on behalf of the 
customs agent, must be Honduran nationals by birth; and only enterprises organized under Honduran law with fixed capital and the sole purpose of providing warehousing services are 
authorized to provide such services.  
4.104.  Finally, other transport services and other services not included elsewhere, for which there 
are no GATS commitments, have been liberalized.  
4.4.5  Guatemala  
4.105.  Under Annex I, Guatemala lists 17 reservations for existing measures of which 4 are 
horizontal. In Annex II it lists eight future reservations of which three are horizontal. Annex III contains two sectoral activities reserved for the State. 
4.4.5.1  Horizontal commitments 
4.106.  Guatemala's horizontal commitments under the GATS place market access and national 
treatment limitations on the presence of natura l persons. Under the Agreement, there is one 
(national treatment, MFN) and three (national treatment) horizontal limitations on investment. Only 
Guatemalans by birth may acquire land individually or collectively.
86 Ownership of a 
3-kilometer-long strip of land along the ocean; 200 meters around the lakeshores; 100 meters on 
either side of the navigable rivers; and 50 meters around any spring that serves as a source of 
water for the population, is reserved for the State, except for real estate in urban zones and registered before March 1, 1956. Only Guatemalans by birth or enterprises that are 100% owned by Guatemalans may own or possess property located within 15 kilometres of the borders. Foreign 
nationals require authorisation to own certain specific State-owned land. Only the Government may 
rent State-owned land to enterprises established under Guatemalan law. To be established in Guatemala, enterprises established under a foreign la w must allocate a certain amount of capital for 
local operations and provide a guarantee.  
4.107.  Horizontal reservations on future measures are the same as for the other Central American 
Parties (except Nicaragua) to the Agreement (see paragraph 4.56 above).  
4.108.  Under the GATS, Guatemala has cross-sectoral MFN exemptions for measures stemming 
from preferences granted under other agreements.
87 These exceptions feature in non-conforming 
measures under the Agreement. 
                                               
86 For Mexico, this restriction only ap plies in the Department of Petén. 
87 1. Agreements signed by Guatem ala under the framework of Central American integration, including: 
Multilateral treaty of free trade an economic integration;  Central American Convention on equalization of import 
duties; Treaty of economic Association; and General Treaty  of Economic Integration. Signatories: Costa Rica, El 
Salvador, Honduras, Nicaragua. 
2. The Central American Exemption cl ause does not allow the extension to third countries of the bilateral 
or multilateral concessions made am ong the Central American countries themselves. Signatories Costa Rica, El 
Salvador, Honduras, Nicaragua. 
3. Convention on investment Guaranties with the United States of America (Decree No. 1545 of 22 August 
1962). Government Decision (Acuerdo) 693-86, on rules for the implementation of the United States investments guarantee convention concluded between the Government of the United States and Guatemala. 
 WT/REG349/1 
 
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  4.4.5.2  Sector-specific commitments 
4.109.  Table 4.5 compares the level of liberalization by sector under the Agreement with 
Guatemala's Schedule annexed to the GATS. It indicates whether the sectoral commitments made under the Agreement in respect of a particular subsector (except those indicated in the Agreement's 
horizontal reservations) are better or the same as those under the GATS. 
Table 4.5 Guatemala: Liberalization by specif ic sector under the Agreement, excluding 
mode 4 
Sector (CPC classification) GATS  Free Trade Agreement  
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework)  Sectoral 
commitments 
under the FTA 
(except for those 
indicated in the 
horizontal 
reservations in the 
FTA), in 
comparison with 
those in the GATS Provisions specifying 
reservations by 
specific sector  
1. Business services partial improved  
A.  Professional services  -- improved I-GT-6,7,11; II-GT-4 
B. Informatics and related services  partial  Full  
C. Research and development services  -- Full  
D. Real estate services  -- full  
E. Leasing or rental se rvices without operators  -- full  
F. Other business services  --  improved I-GT-5; II-GT-6 
2. Communications services partial improved  
A. Postal services  -- improved I-GT-19 
B. Courier services  -- Full  
C. Telecommunications services  partial  Full  
D. Audio-visual services  -- improved II-GT-6 
E. Other  -- full  
3. Construction services and related 
engineering services  --  
improved  
I-GT-11  
A. General construction services of buildings -- improved  
B. General construction services of civil 
engineering works --  
improved  
 
C. Assembly and erection of prefabricated 
constructions  --  
improved  
 
D. Building completion and finishing services -- improved  
E. Other -- improved  
4. Distribution services -- improved  
A. Commission agents' services  -- full  
B. Wholesale trade services  -- improved III-GT-1 
C. Retail trade services  -- improved II-GT-7 
D. Franchising services  -- full  
E. Other --  full  
5. Education services -- improved  
A. Primary education services  -- Full  
B. Secondary education services  -- full  
C. Higher education services  -- full  
D. Adult education services  -- full  
E. Other education services --  full  
6. Environment-related services  -- improved  
A. Sewage services -- full  
B. Waste disposal services -- full  
C. Sanitation and similar services  -- full  
D. Other -- full  
                                                                                                                                                  
4. Agreement on Trade and Investment between Central American countries and Colombia and Venezuela, 
concluded on 12 February 1993. Signatories: Colombia, Costa Rica, El Salvador, Honduras, Nicaragua and Venezuela. 
5. Tuxtla Gutiérrez Agreements concluded on 11 January 1991. Signatories: Costa Rica, El Salvador, 
Honduras, Mexico, Nicaragua. WT/REG349/1 
 
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  Sector (CPC classification) GATS  Free Trade Agreement  
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework)  Sectoral 
commitments 
under the FTA 
(except for those 
indicated in the 
horizontal 
reservations in the 
FTA), in 
comparison with 
those in the GATS Provisions specifying 
reservations by 
specific sector  
7. Financial services Not negotiated under the Agreement 
8. Social and health services  -- improved  
A. Hospital services  -- -- II-GT-3 
B. Other human health services -- -- II-GT-3 
C. Social services -- -- II-GT-3 
D. Other -- full  
9. Tourism and travel-related services partial improved  
A. Hotels and restaurants (including contract 
food services) Partial full  
B. Travel agency services and organization of 
group travel -- full  
C. Tourist guide services -- improved I-GT-17 
D. Other partial full  
10. Recreational, cultural and sports 
services  
--  
improved  
 
A. Entertainment services -- improved I-GT-16 
B. News agency services -- full  
C. Library, archive, mu seum and other cultural 
services  
--  
full II-GT-6 
D. Sports and other recreational services -- full  
E. Other -- full  
11. Transport services partial improved  
A. Maritime transport services  -- improved I-GT-14 
B. Inland navigable waterway services  -- improved I-GT-14 
C. Air transport services  partial  improved I-GT-14,18 
D. Space transport  -- full  
E. Rail transport services  -- full  
F. Road transport services  -- improved I-GT-12,14,15;  
II-GT-5 
G. Pipeline services  --  I-GT-12,14 
H. Auxiliary services for all modes of transport  -- improved I-GT-10 
I. Other transport services -- full  
12. Other services not included elsewhere -- full  
Note: The table shows the commitments undertaken under the GATS and the FTA frameworks. It does not 
take into account the horizontal commitments/reserv ations. In view of the horizontal nature of the 
commitments in mode 4, only modes 1, 2 and 3 are taken into account. "Improved" means 
commitments that go beyond those in the GATS as regards market access or national treatment in any of these three modes. "Similar" means commitments that do not go beyond the GATS, but possibly 
with limited improvements and/or limited additional reservations. "Partial" means commitments under the GATS that are subject to limitations in specific  sectors with regard to market access or national 
treatment in any of the three modes.  --: there are no commitments.  
Source: Schedule of Specific Commitments (GATS/SC/36) supplemented by documents 
GATS/SC/36/Suppl.1/Rev.1 and GATS /EL/36 and relevant sections in Annexes I, II and III to the 
Agreement. 
4.110.  In Annex III Guatemala reserves its exclusive right over the issuance of bills (currency) and 
minting of coinage; collection points ( centros acopio ), wholesale terminals, municipal and similar 
markets. 
4.111.  In business services, Guatemala makes commitments in professional services as well as in 
research and development, real estate and rental/lea sing services without operators, for which it has 
no GATS commitments. It also enlarges its commitments in computer and related services which are partially covered in the GATS. In professional serv ices there is a (MFN, national treatment, local 
presence) reservation on CBTS for notaries, who mu st be Guatemalan of Guatemalan origin and be 
domiciled in Guatemala; a (national treatment, local presence) reservation on investment and CBTS 
by which enterprises organized under the laws of a foreign country that supply professional services WT/REG349/1 
 
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  requiring legally recognized university degrees, certificates, or diplomas cannot not be established in 
Guatemala. There is also a (MFN, local presence , market access) reservation on CBTS, allowing 
Central American nationals by birth or those naturalized and domiciled in a Central American country for five consecutive years, having obtained their degree in one of the Parties to the Agreement on 
the Practice of Graduate Professions and Recognition of Graduate Studies
88 to provide professional 
services under certain conditions and a future CBTS (MFN, national treatment, local presence) reservation by which Guatemala reserves the righ t to take any measure restricting professional 
services. Finally, there is a (MFN, market acce ss) reservation on CBTS for construction and 
engineering services by which enterprises of the other Parties participating in Central America infrastructure projects will receive the same treatment as national enterprises. All other business services save two subsectors (forestry and pr inting and publishing, which are subject to 
reservations), are fully liberalized. 
4.112.  In communication services, postal services (epistolary mail), for which there are no GATS 
commitments, are liberalized subject to a concessi on granted by the Executive. The Ministry of 
Communications, Infrastructure and Housing may grant concessions to private persons for transport 
and delivery of postal mail. Courier services are fully liberalized. As for basic telecommunication services, there are commitments under the GATS, with one market access restriction concerning 
routing and an MFN exemption.
89 Under the Agreement all telecommunication services are 
liberalized. Audio-visual services are also liberaliz ed with an MFN carve out on investment and CBTS 
for existing and future international agreements on cultural industries, including audio-visual cooperation agreements. 
4.113.  Under the Agreement, construction and rela ted engineering services, for which there are no 
GATS commitments, are liberalized with a (MFN, ma rket access) reservation on CBTS, as described 
under other professional services.  
4.114.  There are no GATS commitments for distribution, education and environment-related 
services. The Agreement liberalizes distribution se rvices with a (national treatment, performance 
requirement) reservation on investment and CBTS fo r the distribution and retail trade of Guatemalan 
handicrafts, and a reservation for collection centres, wholesale terminals, municipal and similar 
markets, for the State. Environmental, educational and other health-related services are fully liberalized. 
4.115.  In tourism and travel-related services for which there are partial commitments under the 
GATS, liberalization has been broadened but with one reservation for tourist guides who must be 
Guatemalans of Guatemalan origin or foreign nationals that are residents in Guatemala. 
4.116.  Recreational cultural and sporting services, for which there are no GATS commitments, are 
liberalized while requiring for the performing arts: (i) prior authorization; (ii) consent from artists 
unions; and (iii) preference to Guatemalans if circum stances allow. There is also a future reservation 
for cultural industries. 
4.117.  In transport services where under the GATS there are partial commitments for one 
subsector, the Agreement carves out MFN and mark et access for CBTS in land, maritime and air 
passenger and freight transport granting commercial or private vessels or aircrafts of any party to the Central American Multilateral Treaty of Free Trade and Economic Integration the same treatment 
as national vessels or aircrafts in ports and airports open to international traffic; this treatment also 
applies to passengers, crew and freight of other parties to such Treaty. Ships providing cabotage services between Central American ports will be granted national treatment in the ports of other 
Parties to the Treaty. Land vehicles registered in and companies providing passenger and cargo 
transport services in one of the signatory parties will be granted national treatment but cabotage 
between member countries is not allowed.
90  
                                               
88 Convenio sobre el Ejercicio de Pr ofesiones Universitarias y Reconomi miento de Estudios Universitarios , 
1962. Signatories: Guatemala, El Salvador, Honduras and Costa Rica. 
89 Cláusula centroamericana . 
90 Costa Rica, El Salvador, Hondur as, Guatemala and Nicaragua. Th e mechanism for reciprocal and 
non-discriminatory treatment for international cargo by road (Protocolo de Tegucigalpa) includes Panama in 
relation to transit. WT/REG349/1 
 
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  4.118.  There are no restrictions for maritime and inland navigable waterways transport. For air 
transport services there are two full (maintenance  and repair, computer reservation systems) and 
one partial commitment (selling and marketing) under the GATS which covers maintenance and repair, selling and marketing and computer reservation systems services. The Agreement which 
covers maintenance and repair, specialty air services and computer reservation systems, has one 
(MFN, market access) reservation on CBTS by which the Dirección Nacional de Aeronáutica Civil  
validates licences granted by other countries if the requirements for such licences are equal or 
higher than those existing in Guatemala, under international legislation. Passenger and cargo road 
transport services are liberalized with a (market access, MFN) reservation on CBTS not permitting 
vehicles with foreign plates to transport passenger or commercial cargo between in Guatemala except for the temporary entrance of containers and tractor-trailers with registration plates of a 
Central American country whose destination is one of the countries of the region; and a future CBTS 
(MFN, national treatment, local presence) reservation allowing Guatemala to take measures restricting road freight transport. Space, rail, pipeline and other transport services are fully 
liberalized. On auxiliary services for all modes of transport, there is one (MFN, national treatment, 
local presence, market access) reservation authorizing nationals of countries signatories of the Código Aduanero Uniforme Centroamericano
91 (CAUCA) to be customs agents in the country in 
which they are domiciled. 
4.119.  Other services not included elsewhere are fully liberalized under the Agreement. 4.4.6  Nicaragua 4.120.  In Annex I, Nicaragua lists 29 reservations for existing measures one of which is horizontal; 
in Annex II, 10 possible future reservations are listed, seven of which are horizontal and Annex III 
includes nine sectoral activities reserved for the State.  
4.121.  The following sections relate to Nicaragua's horizontal and specific-sector commitments 
and their liberalization. 
4.4.6.1  Horizontal commitments 4.122.  Nicaragua's horizontal commitments in the GATS restrict foreign investment, approval of 
which is subject to an economic needs test to determine whether it corresponds to the objectives of 
stability and economic development, respects Nicaragua's moral and cultural values, and is consistent with the conservation and protection of the environment. The supply of services by 
suppliers not resident in Nicaragua is limited to senior and specialized personnel in connection with a 
commercial presence and on the condition that it contributes to the training of Nicaraguan 
personnel, who must make up 75% of the company's personnel. Furthermore, the supply of professional services involving the presence of natural persons must fulfil conditions and 
authorizations to exercise a profession. Under the Agreement, Nicaragua has a horizontal CBTS 
(local presence) reservation by which associations located abroad wanting to act in Nicaragua and or wanting to open branches, must maintain in the country a legal representative with registered power 
of attorney. 
4.123.  Horizontal reservations on future measures apply to any measure: (i) limiting the transfer or 
disposal on interests held in any existing state enterprise, such that only a Nicaraguan national may receive such interest
92; (ii) according rights or preferences to domestic small and medium 
enterprises; (iii) according differential treatment to countries under any bilateral or multilateral 
agreement in force or signed before or after entr y into force of the Agreement involving aviation, 
fisheries, or maritime matters, including salvage; (iv) in favour of indigenous or disadvantaged 
groups; (v) concerning coastal lands, islands and river banks in Nicaragua's possession; (vi) on law 
enforcement and correctional services, and servic es to the extent they are social services 
established or maintained for a public purpose such as income security or insurance, social security 
                                               
91 Signatories:  Costa Rica, El Salvador, Hondur as, Guatemala and Nicaragua. 
92 However, this pertains only to the initial transfer  or disposal of such interest. Nicaragua does not 
reserve this right with respect to subsequent transfers or disposals but it reserves the right to limit control of any new enterprise thus created through means other than limi tations on the ownership. Nicaragua also reserves the 
right to adopt or maintain any measure related to the nationality of senior management and members of the 
board of directors in such new enterprise. WT/REG349/1 
 
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  or insurance, social welfare, public education, public training, health, child care; and (vii) on market 
access which is not incompatible with its GATS obligations (not applicable to services listed in Annex I).  
4.4.6.2  Sector-specific commitments 
4.124.  Table 4.6 compares the level of liberalization by sector under the Agreement with 
Nicaragua's Schedule annexed to the GATS. It indicates whether the sectoral commitments made under the Agreement in respect of a particular subsector (except those indicated in the Agreement's 
horizontal reservations) are better or the same as those under the GATS. 
Table 4.6 Nicaragua Liberalization by specif ic sector under the Agreement, excluding 
mode 4 
Sector (CPC classification) GATS  Free Trade Agreement 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments 
under the FTA 
(except for those 
indicated in the 
horizontal 
reservations in 
the FTA), in 
comparison with 
those in the GATS Provisions specifying 
reservations by specific 
sector  
1. Business services  improved  
A.  Professional services  -- partial  I-NI-32,34,35 
B. Informatics and related services  partial  full  
C. Research and development services  partial   I-NI-37 
D. Real estate services  --  I-NI-40 
E. Leasing or rental se rvices without operator  -- improved  I-NI-4 
F. Other business services  partial   I-NI-9,18,19,21,22,24,37 
II-NI-8,9; III-NI-2,3,5  
2. Communications services    
A. Postal services  -- -- I-NI-13; III-NI-1  
B. Courier services  -- full  
C. Telecommunications services  partial   I-NI-13,14,15; III-NI-2  
D. Audiovisual services  partial   I-NI-2, 10,11; II-NI-5  
E. Other  --   
3. Construction services and related 
engineering services   improved I-NI-7 
A. General construction services of buildings -- improved   
B. General construction services of civil 
engineering works -- improved   
C. Assembly and erection of prefabricated 
constructions  -- improved   
D. Building completion and finishing services -- improved   
E. Other -- improved   
4. Distribution services  improved I-NI-8; II-NI-9 
A. Commission agents' services  -- improved   
B. Wholesale trade services  -- improved   
C. Retail trade services  -- improved   
D. Franchising services  -- improved  
E. Other --  improved  
5. Education services  improved  
A. Primary education services  -- full   
B. Secondary education services  -- full  
C. Higher education services  -- full  
D. Adult education services  -- full   
E. Other education services --  full   
6. Environment-related services   improved  
A. Sewage services -- -- III-NI-3 
B. Waste disposal services -- full   
C. Sanitation and similar services  -- -- III-NI-3,4 
D. Other -- full   WT/REG349/1 
 
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  Sector (CPC classification) GATS  Free Trade Agreement 
Sectoral 
commitments 
(except those 
indicated in the 
horizontal 
commitments 
within the GATS 
framework) Sectoral 
commitments 
under the FTA 
(except for those 
indicated in the 
horizontal 
reservations in 
the FTA), in 
comparison with 
those in the GATS Provisions specifying 
reservations by specific 
sector  
7. Financial services Not negotiated under the Agreement 
8. Social and health services   improved II-NI-7 
A. Hospital services  -- --   
B. Other human health services -- --  
C. Social services -- --  
D. Other -- full   
9. Tourism and travel-related services  similar I-NI-4 
A. Hotels and restaurants (including contract 
food services) full similar  I-NI-6 
B. Travel agency services and organization of 
group travel partial similar  
C. Tourist guide services partial less   
D. Other -- improved  
10. Recreational, cultural and sports 
services  improved  
A. Live event services -- improved  I-NI-3 
B. News agency services -- full  
C. Library, archive, mu seum and other cultural 
services -- full   
D. Sports and other recreational services -- improved  III-NI-5 
E. Other -- full   
11. Transport services  improved  
A. Maritime transport services  -- improved  I NI 27; III-NI-5  
B. Inland navigable waterway services  -- improved  I-NI-27  
C. Air transport services  partial  partial  I-NI-29,31; III-NI-3 
D. Space transport  -- full   
E. Rail transport services  full full  
F. Road transport services  -- improved I-NI-25 
G. Pipeline services  -- improved II-NI-9 
H. Auxiliary services for all modes of transport  --  I-NI-36 
I. Other transport services -- full   
12. Other services not included elsewhere -- full   
Note: The table shows the commitments undertaken under the GATS and the FTA frameworks. It does not 
take into account the horizontal commitments/reserv ations. In view of the horizontal nature of the 
commitments in mode 4, only modes 1, 2 and 3 are taken into account. "Improved" means 
commitments that go beyond those in the GATS as regards market access or national treatment in any of these three modes. "Similar" means commitments that do not go beyond the GATS, but possibly 
with limited improvements and/or limited additional reservations. "Partial" means commitments under the GATS that are subject to limitations in specific  sectors with regard to market access or national 
treatment in any of the three modes.  --: there are no commitments.  
Source: Schedule of Specific Commitments (GATS/SC/6 3), supplemented by docu ments GATS/SSC/63/Suppl.1 
and GATS/EL/63 and the relevant sections in  Annexes I, II and III to the Agreement. 
4.125.  In Annex III, Nicaragua reserves the exclusiv e right to authorize or to refuse authorization 
for investment in postal services, telecommunica tions, power transmission, airport management, 
natural resources, water and sewage services, mapping, lotteries and port management 
and operations. 
4.126.  In business services, Nicaragua has made broader commitments under the Agreement. Even 
though the commitments on professional servic es under the Agreement are subject to a broad 
reservation (national treatment, MFN treatment, lo cal presence), this only concerns cross-border 
trade. Informatics services commitments and research and development services (under mode 2) 
are not bound under the GATS. Under the Agreement, these two subsectors and real estate services, leasing or rental services without operators have been largely liberalized. In other business services, 
the GATS commitments are partial both as regard s scope and modes of supply (modes 2 and 4 are WT/REG349/1 
 
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  not bound). Under the Agreement, the commitments are much broader, although there are 
limitations which do not appear in the GATS, namely, nationality restrictions for services relating to agriculture, hunting and forestry; licence and nationality requirements for fishing; concession requirements and a requirement to appoint a perm anent legal representative for mining; and State 
monopoly of energy transmission services. 
4.127.  In communications services, Nicaragua has no commitments for postal or courier services in 
the GATS. Courier services are fully liberalized under the Agreement. Nicaragua has full 
commitments on basic telecommunications and value added in the GATS, but they are confined to 
cellular telephony for telephone services. Nicaragua has a (local presence, MFN) reservation in the Agreement for cross-border trade and a requiremen t to obtain a licence from the governing body 
(TELCOR), although liberalization appears to be broader because it also covers fixed telephony. The 
commitments in audio-visual services in the GATS and in the Agreement are partial but the sectoral 
scope in the Agreement is broader. Nicaragua has, however, made a future reservation (MFN treatment) on investment and CBTS regarding tele vision and "direct-to-home (DTH)" auto-digital 
and "direct broadcast satellite" (DBS) services; a (national treatment, local presence, market 
access) reservation on investment and CBTS by which a license for operating free over the air television and radio broadcast services may only be granted to Nicaraguan persons. In the case of 
enterprises, Nicaraguan nationals must own 51%  of the capital; and a CBTS (MFN, national 
treatment) reservation requiring that enterprises th at supply radio and television broadcast services 
in Nicaragua use the professional services of announcers who are Nicaraguan nationals for narration, commentary, and live broadcast in sports or similar commercial programs. Foreign nationals will be 
allowed to serve as announcers based on reciprocity. 
4.128.  Construction and related engineering services, for which there are no GATS commitments, 
are almost fully liberalized under the Agreement, except for a CBTS (national treatment, local 
presence) reservation, requiring enterprises must be organized under Nicaraguan law and foreign 
nationals to reside in Nicaragua or appoint a legal representative in Nicaragua to supply construction services in Nicaragua. 
4.129.   Distribution services, for which there ar e no GATS commitments, are liberalized under the 
Agreement except for a (national treatment, loca l presence) reservation on the distribution of 
fireworks, firearms and ammunition and a future CBTS (MFN, national treatment, local presence) 
reservation on hydrocarbons, reserving Nicaragua's right to adopt or maintain any measure on the 
supply of hydrocarbons. Educational services, for which there are no GATS commitments are fully 
liberalized under the Agreement.  
4.130.  In environment-related services, although Nicaragua has a State monopoly on sewage 
services and water supply, there are no reservations  in the other subsectors. In health related and 
social services, there is a future broad reserv ation (national treatment, MFN treatment, local 
presence, performance requirements, SMBD) on investment and CBTS for unemployment insurance 
services, social insurance and security, social welfar e, public education, public training, health and 
child care, inasmuch as they are services maintained for reasons of public interest, but there are no reservations in other health related and social services. There is a CBTS (MFN, national treatment and market access) reservation in recreational, cultural and sports services covering many, but not 
all, live event services activities. In the subsector of sports services and other recreational services, 
the State has a monopoly on lotteries and games of chance. Finally, there are no restrictions in other services for which it has no GATS commitments. 
4.131.  Nicaragua has made full commitments under  the GATS in the tourism and travel-related 
services sector for hotels and restaurants and tourist guide services, but partial commitments for travel agency services and the organization of gr oup travel as these have not been bound. Under the 
Agreement, there is a reservation (national treatmen t, local presence) on CBTS that does not appear 
in the GATS, requiring a company to be set up in accordance with Nicaraguan legislation and foreign nationals to reside, or appoint a legal representative, in Nicaragua to provide tourism services and a nationality requirement for tourist guide services. There is also a local presence reservation for on 
premises supply of liquor for consumption.  
4.132.  Nicaragua has made full commitments in transport services for rail transport both in 
the GATS and in the Agreement. In air transport services under the GATS Nicaragua has listed full 
commitments in: (i) aircraft repair and maintenance; (ii) rental of aircraft with crew; and 
(iii) supporting services for air transport, the latter two subsectors are not explicitly covered by the WT/REG349/1 
 
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  GATS Air Transport Annex. The Agreement covers (i ) aircraft maintenance and repair; (ii) specialty 
air services, (iii) computer reservation systems services; and (iv) investment in air transport services. Liberalization under the Agreement is br oader with a reservation (SMBD, MFN, national 
treatment, local presence) on investment and CBTS allowing only Nicaraguan natural or legal 
persons or foreign natural person with permanent residency in Nicaragua, to own a Nicaraguan 
registered aircraft. If there are several owners, thos e possessing more than half of the value of the 
aircraft must be domiciled in Nicaragua. Only Nicaraguan natural or legal persons with 51% of senior 
management composed of Nicaraguans, may provid e domestic transport services; foreign airlines 
may not provide domestic passenger or cargo tran sport services, however, special permits may be 
delivered preferably to Central American Airlines. There is also a CBTS (MFN, national treatment, 
local presence) reservation on specialty air services. 
4.133.  As for maritime transport, for which th ere are no commitments in the GATS, although 
Nicaragua has reservations (MFN, national treatm ent, local presence) on CBTS in passenger and 
freight transport, the commitments are fuller under the Agreement. In order to act as a ship-owner 
or shipping company and to obtain a concession for a route to engage in maritime transport, a 
natural person must be a Nicaraguan national and a company must be set up in accordance with Nicaraguan legislation. Internal and cabotage commercial traffic is reserved for Nicaraguan ship-
owners using Nicaraguan flag vessels, though othe r Central American countries' flag vessels may be 
used based in reciprocity. Only Nicaraguan nationals can be appointed as official pilots in any Nicaraguan port. New authorizations are subject to  economic needs tests. The management of the 
existing ports of national interest is reserved for the National Ports Company (EPN).  
4.134.  With regard to road transport, for which there are no commitments in the GATS, Nicaragua 
has a (national treatment, MFN, local presence, ma rket access) reservation on investment and CBTS 
by which only Nicaraguans may supply point-to-point land transportation of cargo; exceptional 
temporary authorizations to vehicles with foreign plates may however be granted based on 
reciprocity. To be established in Nicaragua international cargo transport enterprises must be 51% Nicaraguan owned and be under Nicaraguan effective control. Authorization for local cargo and cargo 
for export to countries outside Central America may be granted, based on reciprocity, to members of 
the Central American Integration System (SICA). Only Nicaraguan persons may supply collective land transportation services in Nicaragua. Rega rding pipeline transport, Nicaragua has a future 
(MFN, national treatment, local presence) reservation by which it reserves the right to adopt or 
maintain any measure on the establishment, acquisition, management, conduct or operation of any 
enterprise dealing with the exploration, exploitation or supply of hydrocarbons.  
4.135.  For auxiliary services for all means of transport, there is a CBTS (MFN, national treatment, 
local presence) reservation on customs agents. Stev edoring services are subject to authorization, 
stevedoring companies or cooperatives must be incorporated in Nicaragua and have nominative stock, they must be registered and domiciled in Nicaragua and authorizations are subject to 
economic needs tests. 
4.5  Regulatory provisions  4.5.1  Domestic regulation 4.136.  Under Article 12.9, where a Party requires authorization for the supply of a service, its 
competent authorities shall, within a reasonable period after the submission of an application 
considered complete under its laws and regulations, inform the applicant of the decision. At the request of the applicant, the competent authorities shall provide, without undue delay, information 
concerning the status of the application. This does not apply to authorization requirements under 
Article 12.7 (Reservations and Exceptions). 
4.137.  To ensure that measures relating to qualification requirements and procedures, technical 
standards and licensing requirements, do not constitute unnecessary barriers to trade, the Parties 
shall endeavour as appropriate to ensure that such requirements are based on objective and 
transparent criteria, are not more burdensome than  necessary and that licensing procedures are not 
in themselves a restriction on the supply of a serv ice. When the results of negotiations under GATS 
Article VI:4 (or results of similar negotiations in another multilateral forum in which the Parties 
participate) enter into force, Article 12.9 shall be modified after consultations under the Agreement. The Parties shall endeavour to coordinate their positions in such negotiations. WT/REG349/1 
 
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  4.5.2  Recognition 
4.138.  Article 12.10 and Annex 12.10 (Profess ional Services) deal with recognition. 
4.139.  No Party shall accord recognition in a manner that would constitute a means of 
discrimination or a disguised restriction on trade in services. To fulfil the standards or criteria for 
authorization, licensing or certification of services suppliers, the Parties may recognize the education 
or experience obtained, requirements met, or licenc es or certificates granted in a particular country, 
including the other Party or a non-party. Such recognition, which may be achieved through 
harmonization or otherwise, may be based upon an agreement or arrangement with the country 
concerned or may be accorded autonomously (Article 12.10.1). A Party that is party to a recognition arrangement or agreement shall afford adequate opportunity for another Party to negotiate its accession to such arrangement or agreement or to negotiate a comparable one with it. If recognition 
is granted autonomously by a Party, it shall afford adequate opportunity for another Party to 
demonstrate that education, experience, licences or certifications obtained or requirements met in that other Party should be recognized. This shall not however be construed to require the Party to 
accord such recognition to the education or experience obtained, requirements met, or licenses or 
certifications granted in the territory of any other Party.  
4.140.  A year after entry into force of the Agreement the Parties shall study the possibility of 
eliminating nationality or permanent residency requirements for the recognition of diplomas for 
professional services listed in Annex I. If a Party cannot comply with the other Party may maintain a comparable requirement in the same sector (Article 12.10.5). The  Parties indicated that this 
provision has so far not been implemented, so requirements listed in Annex I are in force. Honduras 
has listed professional services in Annex II. 
4.141.  Under Annex 12.10 the Parties shall encourage their relevant bodies to draw up mutually 
acceptable rules and criteria for according licences and certificates for professional services suppliers 
and to make recommendations on mutual recognitio n to the Administrative Commission. These rules 
may cover, inter alia, accreditation of schools, academic curricula, examinations, local knowledge and consumer protection. However, recommendations on mutual recognition have not been 
presented so far. The Commission will review the im plementation of this Annex at least once every 
three years. 
4.5.3  Subsidies 4.142.  There are no provisions on subsidies for services under the Agreement. Chapter XII (Cross-
border Trade in Services ) does not apply to subsidies or donations accorded by a Party. 
 
4.5.4  Safeguards 
4.143.  Other than the Balance of Payments safeguard under Article 20.6 (See section 3.4.2.4), 
there are no provisions on safeguards for services under the Agreement.  
4.6  Sector specific provisions on trade in services 
4.6.1   Road Transport 
4.144.  Six months after entry into force of the Agreement, Guatemala, Honduras and Mexico shall 
start negotiations to establish conditions for liberalizing road transport. They shall include the elimination of restrictions on cross-border trade and the establishment of a work programme aimed 
at harmonizing standards between the Parties. Howe ver, these negotiations have not taken place so 
far.  
4.145.  Nicaragua and Mexico shall establish a work programme for the elimination of barriers to 
land transport in their territories. This will include, work by both Parties in the land transport sector 
as well as agreements or arrangements signed with non-parties. These negotiations have not started yet.  WT/REG349/1 
 
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  4.6.2   Telecommunication Services 
4.146.  Chapter XIII93 establishes regulatory principles applicable to public telecommunications 
services commitments undertaken under Chapters XI (Investment) and XII (Cross-Border Trade in 
Services). It does not apply to any measure adopted or maintained by a Party relating to cable or 
broadcast distribution of radio or television. Ho wever, going beyond the GATS telecommunications 
Annex and the reference paper the scope ensures that persons operating broadcast stations and cable systems have access to and use of public telecommunications transport networks and services. 
In the event of incompatibility with other Chapters of the Agreement, this Chapter will prevail to the 
extent of the incompatibility (Article 13.2). 
4.147.  As in the reference paper, the regulatory Au thority shall be legally different and functionally 
independent from any telecommunications services provider and its decisions and procedures shall 
be impartial. Additionally, the provision of telecommunications services to the public shall be 
authorized in conformity with domestic legislation. The Parties must ensure that the regulators have the necessary resources to perform their functions. Authorized services providers affected by a 
decision have the right of appeal (Article 13.3).  
4.148.  Concerning competition, the Parties shall adopt or maintain appropriate measures to prevent 
major suppliers from engaging or continuing in anti-competitive practices such as anti-competitive 
cross subsidization or use of information obtained from competitors with anticompetitive results, and 
not making available on a timely basis technical information on essential facilities and relevant commercial information necessary to provide the services (Article 13.5). 
4.149.  Article 13.6 gives any authorized supplier th e right to negotiate interconnection with other 
public network and public telecommunications services suppliers. Interconnection agreements shall 
be registered with the Regulatory Authority and be based in principle on commercial negotiation without prejudice to the Authority's intervention in conformity with national legislation. Information 
acquired during the negotiation of interconnection agreements shall only be used for the purpose it 
had been provided and its confidentiality shall be respected. 
4.150.  Interconnection with a major supplier will be ensured at any technically feasible point in the 
network and in conformity with domestic legislation. Though the provisions of the Chapter are 
basically the same as in the reference paper, the specific interconnection obligations (paras 13:4-6) do not apply to mobile commercial services or rural telecommunications services providers. 
4.151.  Procedures for the allocation and use of scarce resources, including frequencies, numbers 
and rights of way, will be objective, timely, tran sparent and non-discriminatory. The current state of 
allocated frequency bands will be made publicly av ailable, but detailed identification of frequencies 
allocated for specific government uses is not required (Article 13.7). 
4.152.  In the event of disputes between suppliers on interconnection (covered by the reference 
paper) and on competition between major suppliers , the Authority or other competent independent 
body will issue, at the request of any supplier, a binding decision to resolve the dispute as soon as 
possible. 
4.153.  In relation to universal services and transparency the Chapter's provisions are basically 
equivalent to those of the GATS telecommunications Annex and the reference paper. 
4.6.3  Electronic Commerce 
4.154.  In Chapter XV the Parties recognize the economic growth and opportunities provided by 
electronic commerce, the importance of avoidi ng the imposition of barriers to its use and 
development and the applicability of WTO rules to electronic commerce. They clarify that nothing in 
the Chapter precludes them from imposing internal taxes, directly or indirectly, provided they are 
imposed in a manner consistent with the Agreement. Furthermore, they confirm that Chapters XI 
                                               
93 The Chapter does not create any market access right or obligation. The term authorization includes 
licences, concessions, permits, registrations or other ty pe of authorizations that a Party may require for the 
provision of telecommunications services.  WT/REG349/1 
 
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  (Investment) and XII (Cross-border Trade in Servic es) of the Agreement apply to services provided 
by electronic means subject to exceptions under non-conforming measures (Articles 15.2-3).  
4.155.  Under Article 15.4, the Parties shall not impose tariffs on imports or exports of digital 
products through electronic means. Each Party shall determine the customs value of an imported 
carrier medium bearing a digital product based on the value of the carrier medium alone, for the 
purpose of determining the applicable customs duties.  
4.156.  A Party shall not accord less favourable treatment to: (i) electronically transmitted digital 
products that are created, produced, published, st ored, transmitted, contracted for, commissioned, 
or first made available on commercial terms in the territory of the other Party; or (ii) to digital products whose author, performer, producer, develope r, or distributor is a person of the other Party 
or a non-party, than treatment it accords to digita l products that are created, produced, published, 
stored, transmitted, contracted for, commissioned, or first made available on commercial terms in 
its territory or in a non-party.  
4.157.  The Parties stress the importance of workin g together to overcome problems encountered by 
small and medium enterprises in using electronic commerce; to share information on laws and 
regulations on aspects including privacy, cyber security, electronic signatures and intellectual 
property; to establish mechanisms for the acceptance of digital certificates and to actively 
participate in hemispheric and multilateral fora to promote the development of e-commerce 
(Article 15.5). Finally, each Party shall publish or otherwise make available to the public its laws, regulations and other measures of general application in relation to e-commerce (Article 15.6). 
4.6.4  Financial Services 
4.158.  Chapters XI and XIII (Financial Services ) of the Free Trade Agreement between Mexico and 
the Republics of El Salvador, Guatemala and Ho nduras signed on June 29, 2000 and of the Free 
Trade Agreement between the Government of Mexico and the Government of the Republic of 
Nicaragua signed on December 18, 1997, respectively, will remain in force until the Parties agree to 
negotiate common disciplines on financial services under the Agreement. Costa Rica does not have commitments on financial services under the Agreement. 
5  GENERAL PROVISIONS OF THE AGREEMENT 
5.1  Transparency 5.1.  Under Article 18.2, each Party shall designate a contact point to facilitate communications 
between the Parties on any matter covered by the Agreement and at the request of the other Party 
shall identity the office or the official responsible for a matter. Under Article 18.3, the Parties shall 
ensure that their laws, regulations, procedures, and administrative rulings of general application referring to any matter covered by the Agreement are promptly published or otherwise made 
available so interested persons and the other Partie s become acquainted with them. If possible, they 
shall publish in advance proposed measures and provide interested persons and Parties a reasonable opportunity to comment on the measures. 
5.2.  To the maximum extent possible, each Party shall notify any proposed or actual measure that 
it considers might materially affect the operation of the Agreement or otherwise substantially affect other Parties' interests under the Agreement. It shall promptly provide information and respond to questions (Article 18.4).  
5.3.  With a view to administering in a consistent, impartial and reasonable manner all measures of 
general application affecting matters covered by the Agreement, each Party shall ensure that in its administrative proceedings applying measures to particular persons, goods, or services of the other 
Party: (i) persons of the other Party directly affected by a proceeding are provided reasonable notice 
when a proceeding is initiated, including a description of the nature of the proceeding, a statement of the legal authority, and a general description of any controversial issues; (ii) such persons are 
afforded a reasonable opportunity to present facts and arguments in support of their positions prior 
to any final administrative action; and (iii) their procedures are in accordance with domestic law (Article 18.5). WT/REG349/1 
 
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  5.4.  Each Party shall establish or maintain judicial, quasi-judicial, or administrative tribunals or 
procedures for the prompt review and correction of final administrative actions regarding matters covered by the Agreement. Such tribunals shall be  impartial and independent and shall not have any 
substantial interest in the outcome of the matter. The parties to the proceeding shall have the right 
to support or defend their respective positions and to a decision based on the evidence and 
submissions of record or, where required by domest ic law, the record compiled by the administrative 
authority. Additionally, each Party shall ensure, subject to appeal or further review as provided in 
their domestic law, that such decisions shall be implemented by, and shall govern the practice of, 
the office or authority with respect to the ad ministrative action at issue (Article 18.6).  
5.2  Current payments and capital movements 5.5.  Under Articles 12.11 and 11.10, each Party shal l permit all transfers and payments relating to 
the cross-border supply of services and to an investment of an investor of another Party freely and 
without delay into and out of its territory, in a freel y usable currency at the market rate of exchange 
prevailing at the time of transfer. Payments relating to an investment include: (i) profits, dividends, 
interest, capital gains, royalty payments, management fees, technical assistance and other fees, 
returns in kind and other amounts derived from the investment; (ii) proceeds from the sale or from the liquidation of the investment; (iii) payments ma de under a contract entered into by the investor, 
or its investment, including payments made pursuant  to a loan agreement; (iv) payments made for 
expropriation and compensation; and (v) payments arising under Section C (Dispute Settlement between a Party and an investor of another Party). However, a Party may prevent a transfer by means of the fair and non-discriminatory application of its legislation on: (i) bankruptcy, insolvency, 
or protection of creditors' rights; (ii) the issuing, marketing and trading of securities; (iii) financial 
reporting and record keeping transfers when necessary to assist law enforcement or financial regulatory authorities; (iv) criminal, civil or administrative violations; (v) guaranteeing the 
enforcement of judgments and arbitration awards  resulting from judicial or administrative 
proceedings; or (vi) social security, pensions or compulsory savings programmes; Article 11.10.5 on investments adds laws or mechanisms to secure in come tax collection through, inter alia, retention 
of dividends. 
5.3  Exceptions 5.6.  For the purposes of Chapters III (National Treatment and Market Access for Goods), IV (Rules 
of Origin, V (Origin Procedures, Customs Administration) VI (Trade Facilitation), VII (Sanitary and 
Phytosanitary Measures), and IX (Technical Barriers to Trade), Article XX of the GATT 1994 and its 
interpretive notes are incorporated into and made  part of the Agreement, mutatis mutandis. The 
Parties understand that measures referred to in Article XX(b) of the GATT 1994 include 
environmental measures necessary to protect human, animal, or plant life or health, and that 
Article XX(g) of the GATT 1994 applies to measures relating to the conservation of living and non-living exhaustible natural resources. For the purposes of Chapters XII (Cross-Border Trade in 
Services), XIII (Telecommunications), and XV (Electronic Commerce), Article XIV of the GATS 
(including its footnotes) is incorporated into and made part of the Agreement, mutatis mutandis. The Parties understand that the measures referred to in Article XIV (b) of the GATS include 
environmental measures necessary to protect human, an imal, or plant life or health (Article 20.2).  
5.7.  Concerning national security, no provision of the Agreement will be interpreted as: (i) obliging 
a Party to provide or give access to information whose disclosure is considered contrary to its essential security interests; (ii) preventing a Party from adopting measures that it considers 
necessary for the protection of its essential security interests; and (iii) preventing a Party from 
adopting measures that it considers necessary to fulfil its obligations under the United Nations Charter for the maintenance of peace and international security (Article 20.03). Nothing in the 
Agreement shall be construed to require a Party to furnish or allow access to confidential information 
the disclosure of which would be contrary to the Constitution, laws or public interest, or which would prejudice the legitimate commercial interests of particular enterprises, public or private (Article 20.4).  
5.8.  Nothing in the Agreement shall apply to taxation measures (Article 20.5) or affect the rights 
and obligations of either Party under any tax convention. In the event of any inconsistency between the Agreement and any such convention, that co nvention shall prevail to the extent of the 
inconsistency. However, Article 3.3 (National Treatment) and other provisions of the Agreement WT/REG349/1 
 
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  necessary to give effect to that Article shall apply to taxation measures to the same extent as 
Article III of the GATT 1994 and Article 3.14 (Export Taxes) apply to taxation measures.  
5.9.  Article 11.11 (Expropriation and Compensati on) and Article 11.20 (Submission of a Claim to 
Arbitration) shall apply to a taxation measure alleged to be an expropriation. However, an investor 
that seeks to invoke Article 11.11 with respect to a taxation measure must first refer the issue of 
whether that taxation measure involves an expropriation to the competent authorities of the Parties of the claimant and the respondent se t out in Annex 20.5 of the Agreement.
94 If the competent 
authorities do not agree to consider the issue or, having agreed to consider it, fail to agree that the 
measure is not an expropriation within a period of six months of such referral, the investor may submit its claim to arbitration under Article 11.20. Investors may not invoke expropriation and compensation as the basis of a claim where it has been determined pursuant to this paragraph that 
the measure is not an expropriation (Article 20.5.4). 
5.4  Accession and Withdrawal 5.10.  Accession is open to any State subject to the terms and conditions agreed between the 
Administrative Commission and such State. Accession will take effect within 30 days after 
notification that all domestic procedures for entry into force of the Agreement have been completed or any other date agreed by the Parties (Article 21.5). 
5.11.  In accordance with Article 21.6, any Party may denounce the Agreement. The Agreement will 
remain in force for the other Parties. This denunciation will take effect 180 days after having been notified in writing to the other Parties, without prejudice to the possibility of another date being 
agreed. 
5.5  Institutional framework  
5.12.  In Article 19.1, the Parties establish the Administrative Commission, comprising cabinet-level 
representatives of the Parties, as set out in Annex 19.1, or their designees.
95  
5.13.  The Commission shall (i) ensure the complia nce with and the proper implementation of the 
Agreement; (ii) assess its results and oversee its further elaboration; (iii) propose measures for its administration; (iv) seek to resolve disputes re garding the interpretation or application of the 
Agreement;(v) fix remunerations and payment of expenses to panellists, assistants and experts; (vi) 
supervise the work of all committees, and working groups established
96 under the Agreement; and 
(vii) consider any other matter that may affect the operation of the Agreement.  
5.14.  The Commission may: (i) establish and delegate responsibilities to committees and working 
groups; (ii) adopt decisions to accelerate tariff elimination under the Tariff Reduction Programme in 
Annex 3.4, incorporate products and improve market access conditions, establish and adopt the operating rules of the CRII in Chapter IV (Rules of Origin), Annex 4.20, the Common Guidelines of 
Chapter V (Customs procedures relating to origin), the model rules of procedure and the code of 
conduct of Chapter XVII (Dispute Settlement and elaborate and modify Annex 3.16 (Tariff treatment for Chapter 62 goods that incorporate materials of the United States), Annex 4.3 (Specific rules of 
origin) and Annex I (Non-conforming measures), II (Future measures), III (Activities reserved for 
the State) and Annex 10.2 (Scope for procurement); (iii) issue interpretations of the provisions of the Agreement; (iv) seek the advice of non-governmental persons or groups; and (v) take other action in the exercise of its functions to improve the implementation of the Agreement. 
                                               
94 For Costa Rica; the Ministerio de Hacienda ; for El Salvador, the Ministerio de Hacienda ; for Guatemala 
the Ministerio de Finanzas públicas y la Superintendencia de Administración Tributaria ; for Honduras, the 
Dirección Ejecutiva de Ingresos ; for Mexico, the Secretaría de Hacienda y Crédito Público ; and for Nicaragua, 
the Ministerio de Hacienda y Crédito Público.  
95 Costa Rica: Ministry of Foreign Trade; El Salvad or: Ministry of Economy; Guatemala: Ministry of 
Economy; Honduras: Secretariat of State for Industry and Trade; Mexico: Secretar y of State for Economy; 
Nicaragua: Ministry of Develo pment, Industry and Trade. 
96 Committee on Trade in Goods, Subcommittee on Trade in Agriculture; Committee on Regional 
Integration of Inputs; Committee on Origin, Customs Procedures Relating to the Origin of Goods and Trade Facilitation; Committee on Sanitary and Phytosanitary Measur es; Committee on Technical Barriers to Trade; 
Committee on Temporary Entr y of Business Persons. WT/REG349/1 
 
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  5.15.  The Commission shall convene at least once a year in regular session, and at any time upon 
the Parties' request in special session. It will establish its rules and procedures and will adopt decisions by consensus. Each Party shall apply the Commission's decisions in conformity with its domestic legal procedures.
97The Commission may also discuss bilateral matters of interest to Mexico 
and one or more Central American States and adopt decisions on such matters. 
5.16.  Each Party shall appoint a free trade agreement coordinator98, as set out in Annex 19.2. The 
coordinators shall work jointly to develop agenda s and make other preparations for the Commission 
meetings and shall follow-up on the Commission's decisions, as appropriate (Article 19.2).  
5.17.  Each Party shall designate a permanent office that shall provide administrative assistance to 
the panels established under Chapter XVII (Dispute  Settlement) and shall notify the Commission of 
the location of its designated office and the officer responsible for its administration. The Parties 
shall be responsible for the operation and costs of their designated offices and for the remuneration 
and payment of expenses of panellists and experts.  The designated offices shall perform such other 
functions as the Commission may direct.  
5.6  Dispute settlement 
5.18.  Chapter XVII refers to dispute settlement.99 The Parties shall at all times endeavour to agree 
on the interpretation and application of the Ag reement, and shall make every attempt through 
cooperation and consultations to arrive at a mutually satisfactory resolution of any matter that might 
affect its operation. Solutions must be compatible with the Agreement, must not nullify or impair its advantages nor be a barrier to the attainment of its objectives and shall be notified to the Administrative Commission within 15 days (Article 17.2).  
5.19.  The provisions of Chapter XVII apply to th e avoidance or settlement of all disputes between 
the Parties regarding the interpretation or application of the Agreement or wherever a Party considers that an actual or proposed measure of another Party is or would be inconsistent with the 
obligations of the Agreement or cause nullificati on or impairment in the sense of Annex 17.3.
100 
Under Article 17.4, the complaining Party must choose either the Agreement or the WTO as the forum. The chosen forum will be used to the exclusion of the other. In disputes relating to 
perishables deadlines shall be reduced by half unless the contesting Parties decide otherwise. 
5.20.  Each Party may request consultations (Article 17.6) in writing with copies to the other Parties, 
through the designated body
101, on any existing or planned measure which it considers might affect 
the operation of the Agreement. Other Central American Parties may participate as consulting 
Parties on delivery of written notice of their substantial trade interest within five days. The Parties 
will do everything possible to arrive at an agreed settlement. If the consultations do not settle the dispute within 30 days, the Parties may refer the question to the Administrative Commission
102, 
which will meet within ten days. The Commission may call in technical advisers or create the expert 
groups it considers necessary, resort to good offices, conciliation, mediation or other dispute settlement procedures, or make recommendations. Unless it decides otherwise, the Commission 
                                               
97 Annex 19.1.3(b): for Costa Rica, third paragraph of Article 121.4 of the Constitution; for Honduras, 
Article 21 of the Constitution. 
98 Costa Rica; the Director General de Comercio Exterior  de Ministerio de Comercio Exterior ; El Salvador: 
the Director de la Dirección de Admini stración de Tratados Comerciales  of the Ministerio de Economía ; 
Guatemala: the Director de Administración Comercio Exterior del Ministerio de Economía ; Honduras: the Director 
General de Integración Económica y Política Comercial de la Secretaría de Industria y Comercio ; Mexico: the Jefe 
de Unidad de Negociaciones Comerciales Internacionales de la Secretaría de Economía ; Nicaragua: the Director 
General de Comercio Exterior del Minist erio de Fomento, Industria y Comercio . 
99 Except for paragraphs 7.2, 7.3 and 7.4 on Gl obal Safeguard measures , Chapter XVII (Dispute 
Settlement) does not apply to Sectio n B: Global Safeguard Measures.  
100 A Party may have recourse to dispute settlement under this Chapter if as a result of the application of 
any measure that is not inconsistent with the Agreement, it considers that any benefi t it could reasonably have 
expected to accrue to it under any pr ovision of Chapters III (National Treatm ent, Market Access), IV (Rules of 
Origin, V (Customs Procedures relating to origin, IX (Tec hnical Barriers to Trade), an d XII (Cross-Border Trade in 
Services) is being nullified or impaired. 
101 Designated Body under Article 19.3 (Admin istration of Dispute Settlement Procedures). 
102 For this purpose the Administrative  Commission will be constituted on ly by officers of the consulting 
Parties or persons designat ed by them (Annex 19.1). WT/REG349/1 
 
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  may consolidate two or more proceedings concerning the same measure or other matters that it 
determines are appropriate to be considered jointly (Article 17.7). 
5.21.  Any consulting Party may request in writing the establishment of an arbitral panel within 
ten days of receipt of the request for action by the Commission, if the Commission has not met, 
30 days after the Commission's meeting, or such other period as the Parties may agree. The 
complaining Party shall present the complaint to the other Parties in writing, through the designated office, identifying the specific measures at issue and the legal basis of the complaint. A Party having 
a substantial interest may intervene as a third Party if it notifies its interest in participating within 
five days of delivery of the request for the establis hment of an arbitral panel. If a Party decides not 
to participate as a complaining party it shall refrain from initiating a procedure regarding the same matter in the absence of a significant change in economic or commercial circumstances 
(Article 17.8). A three-member arbitral panel will be established based on procedures described in 
Article 17.9. Third parties shall be entitled to attend all hearings, to make written and oral submissions to the panel and to receive written su bmissions of the disputing Parties (Article 17.11). 
The Model Rules of Procedure (Article 17.12) shall include the right to at least one hearing before 
the arbitral panel, as well as the opportunity to provide initial and written rebuttals, which will be confidential.  
5.22.  Within 90 days of the meeting at which it was set up, and barring exceptional circumstances 
within no more than 120 days, the arbitral panel will present to the Parties its preliminary report (Article 17.15), which will contain its findings of fact, its determination regarding the measure, the draft final report and its recommendations. Following written comments from the disputing Parties 
within 15 days of the preliminary report being presented, the final report (Article 17.16) will be 
presented to them within 30 days of the presenta tion of the preliminary report, unless the Parties 
agree on another time-limit.  
5.23.  The final report will be binding on the Pa rties on the terms and conditions specified therein 
(Article 17.17). If in its final report a panel has determined that a measure is inconsistent with the obligations of the Agreement or causes nullification or impairment and the contending Parties have 
not reached a compensation agreement or a mutual ly satisfactory resolution within 30 days of 
receiving the final report, the complaining Party may suspend the application of benefits of equivalent effect until they have reached agreement on a resolution of the dispute in accordance with the provisions of Article 17.18.
103 Once the concessions have been  suspended, the Parties, at 
the request of one of them, may reco nvene the original arbitral panel104 to: (i) determine whether 
the level of the concessions suspended by the comp laining Party is excessive or (ii) determine any 
disagreement between the Parties about compliance wi th the final report, or any agreement reached 
between them or the compatibility of any compliance measure adopted.  The panel shall present its 
determination within 60 days after the last panellist is selected or such other period as the disputing Parties may agree. 
5.24.  Chart 5.1 below indicates the steps in the dispute settlement process. 
                                               
103 The suspension of concessions will last until the respondent Party complies with the final report or until 
the Parties arrive at an agreement. Ho wever, if the respondent Party consists  of two or more Parties and one of 
them complies with final report or reaches an agreement with the complaining Party, the latter must lift the suspension of concessions with respect to that Party. 
104 The procedure for this arbitral panel will be es tablished in accordance with the Model Rules of 
Procedure. WT/REG349/1 
 
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  Chart 5.1 Dispute settlement mechanism under the Agreement 
 
 
  Commission 
(meeting within a period of 10  
days) (Art. 17.7)  Alternative methods of dispute 
settlement (i.e., good offices, 
conciliation, mediation)  
(Art. 17.7)  
Request for establishment o f
an arbitral group (Art. 17.8)  
Preliminary report 
(Art. 17.15)  
Final report to Parties(Art. 17.16)
 
Compliance  
(Art. 17.17)  Non-compliance  
Suspension of concessions  
Art. 17.18  30 days30 days 
(15 days if perishable 
products are involved  
30 days  
(15 days 
perishable 
products are 
involved)  
Establishment of the arbitral 
group (Art. 17.10)  
90 days or up 
to 120 days  30 days 
30 days
Deadline as determined in the report  
30 days 
Review of the group on  
compliance or level of suspension  
Article 17.19 
 
Report issued  60 days Publication  
(Art. 17.16)  Notification to  
the Commission Consultations 
(Art. 17.6)  
Comments by the Parties within 
15 days (Article 17.5.6) 
5 days  15 days WT/REG349/1 
 
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  5.25.  Articles 17.20-22 deal with internal procedures and the settlement of private trade disputes. 
If a question of interpretation or application of the Agreement arises in a judicial or internal administrative procedure, or a court or administrative body requests the opinion of a Party, the Commission will try to agree on an appropriate response. The Party in whose territory the court or 
administrative body is located will present the interpretation agreed by the Commission in 
conformity with the rules of that forum and, if the Commission cannot agree on any interpretation or response, the Party in whose territory the court or administrative body is located may submit its 
own opinion (Article 17.20). Where the rights of private individuals are concerned, no Party may 
grant right of action under its legislation against the other Party on the basis that a measure is incompatible with the Agreement. Finally, the Parties will encourage and facilitate the use of 
arbitration and other alternative means of settling disputes between private individuals. To this end, 
each Party will maintain appropriate procedures for arbitration and the recognition and enforcement 
of arbitral awards (Article 17.22). A Party shall be deemed to be in compliance if it is a party to and is in compliance with the 1958 United Nations Co nvention on the Recognit ion and Enforcement of 
Foreign Arbitral Awards or the 1975  Inter American Convention on International Commercial 
Arbitration.
 105 The Commission may establish a Consultative Committee on Private Trade Disputes 
composed of persons with specialized knowledge in this field.  
5.26.  In the case of disputes between an investor of a Party and a Party, Section C of Chapter XI 
establishes the time limits and conditions for submitting a claim for arbitration and the procedures that must be followed. The investor may submit the claim for arbitration in accordance with: (i) the Convention on the Settlement of Investment Disputes (ICSID), if the two States are parties; (ii) the 
rules of the ICSID mechanism, if only one of the Stat es is party to the Convention; or (iii) the United 
Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules. Consent and submission of a claim to arbitration implies fulfilment of the requirements of: (i) Chapter II of the 
ICSID Convention and the rules of the Supplementa ry Mechanism; (ii) Article II of the New York 
Convention; and iii) Article I of  the Inter-American Convention. 
5.27.  Dispute settlement provisions between a Party and an investor of the other Party under the 
Free Trade Agreement between Mexico and the Repu blics of El Salvador, Guatemala and Honduras 
and of the Free Trade Agreement between the Gove rnment of Mexico and the Government of the 
Republic of Nicaragua, respectively, will remain in force only for the purposes of Chapters XI 
and XIII of such agreements and when they are mentioned in those Chapters. 
5.7  Relationship with other agreements concluded by the Parties 
5.28.  Table 5.1 shows participation by the Parties in other RTAs (notified and not notified). Table 5.1 Mexico and Central America: Pa rticipation in other RTAs (notified and 
non-notified in force), as of 12 June 2015 
RTA Name Date of entry 
into force Coverage GATT/WTO Notification 
Year WTO Provision 
MEXICO 
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 
Mexico - Uruguay 15-Jul-04 Goods & Services 2013 GATT Art. XXIV & GATS Art. V 
EFTA - Mexico 01-Jul-01 Goods & Services 2001 GATT Art. XXIV & GATS Art. V 
Israel - Mexico 01-Jul-00 Goods 2001 GATT Art. XXIV 
                                               
105 Costa Rica, El Salvador, Guatemala, Honduras, Nica ragua and Mexico are parties to the Convention on 
the Recognition and Enforcement of Foreign Arbitral Aw ards (1958) and to the Inter-American Convention on 
International Commercial Arbitration (1975). Furthermore, the Parties legislation on mediation and arbitration are: Costa Rica, Ley sobre arbitraje comercial internacional , Law Nº 8937 of 27 April 2011, and Resolución 
alterna de conflictos y prom oción de la paz social RAC , Law Nº 7727 of 9 December 1997; El Salvador, Ley de 
Mediación, Conciliación y Arbitraje , published in Diario Oficial  No. 153, Volume 536 of 21 August 2002; 
Guatemala , Ley de Arbitraje (Decreto del Congreso ) Nº 67-95; Honduras, Decree Nº 161-2000, Ley de 
Conciliación y Arbitraje , aproved on 17 October 2000, in force on 7 March 2001; Mexico, Código de Comercio 
(Título Cuarto "Del Arbitraje Comercial  and Título Especial "Juicio Oral Mercantil"  and Código Federal de 
Procedimientos Civiles (Libro Cuarto "De la Cooperación Procesal Internacional") ; Nicaragua, Ley de Mediación y 
Arbitraje  Nº 540 of 25 May 2005, in force on 24 June 2005. WT/REG349/1 
 
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  RTA Name Date of entry 
into force Coverage GATT/WTO Notification 
Year WTO Provision 
EU - Mexico 01-Jul-00(G) 
01-Oct-00(S) Goods & Services 2000(G)  
2002(S) GATT Art. XXIV & GATS Art. V 
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  Not notified 
MERCOSUR - Mexico [LAIA, AAP.CE 
N°55] 01-Jan-03 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] 14-Dec-87 Goods Not notified 
Argentina - Mexico [LAIA, AAP.CE 
N°6] 01-Jan-87 Goods Not notified 
Mexico - Panama [LAIA, AAP.A25 
N°14] 24-Apr-86 Goods Not notified 
Mexico - Paraguay [LAIA, AAP.R 
N°38] 01-Jul-84 Goods Not notified 
LAIA - Cultural Goods [LAIA 
AR.CEYC N°7]   09-Aug-90 Goods Not notified 
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-84 Goods Not notified 
COSTA RICA 
EFTA - Central America (Costa Rica 
and Panama) 19-Aug-14 Goods & Services 2014 GATT Art. XXIV & GATS 
Art. V 
EU - Central America 01-Oct-13* Goods & Services 2013 GATT Art. XXIV & GATS 
Art. V 
Costa Rica - Singapore 01-Jul-13 Goods & Services 2013 GATT Art. XXIV & GATS 
Art. V 
Costa Rica - Peru 01-Jun-13 Goods & Services 2013 GATT Art. XXIV & GATS 
Art. V 
China - Costa Rica 01-Aug-11 Goods & Services 2012 GATT Art. XXIV & GATS 
Art. V 
Dominican Republic - Central 
America - United States Free Trade 
Agreement (CAFTA-DR) 01-Jan-09 Goods & Services 2006 GATT Art. XXIV & GATS 
Art. V 
Panama - Costa Rica (Panama - Central America) 23-Nov-08 Goods & Services 2009 GATT Art. XXIV & GATS 
Art. V 
Canada - Costa Rica 01-Nov-02 Goods 2003 GATT Art. XXIV 
Chile - Costa Rica (Chile - Central America) 15-Feb-02 Goods & Services 2002 GATT Art. XXIV & GATS 
Art. V 
Dominican Republic - Central 
America 07-Mar-02 Goods & Services 2012 GATT Art. XXIV & GATS 
Art. V 
Central American Common Market (CACM) 04-Jun-61 Goods 1961 GATT Art. XXIV 
CACM - Accession of Panama  06-May-13 Goods Not notified 
CARICOM - Costa Rica  15-Nov-05 Goods Not notified 
Venezuela - Costa Rica [LAIA, 
AAP.A25TM N°26]  27-Jul-94 Goods Not notified 
EL SALVADOR 
EU - Central America 01-Oct-13* Goods & Services 2013 GATT Art. XXIV & GATS 
Art. V 
El Salvador - Cuba 01-Aug-12 Goods 2013 Enabling Clause 
Colombia - Northern Triangle (El 
Salvador, Guatemala, Honduras) 01-Feb-10 Goods & Services 2012 GATT Art. XXIV & GATS 
Art. V 
El Salvador- Honduras - Chinese 
Taipei 01-Mar-08 Goods & Services 2010 GATT Art. XXIV & GATS 
Art. V WT/REG349/1 
 
- 87 - 
 
  RTA Name Date of entry 
into force Coverage GATT/WTO Notification 
Year WTO Provision 
Dominican Republic - Central 
America - United States Free Trade 
Agreement (CAFTA-DR) 01-Mar-06 Goods & Services 2006 GATT Art. XXIV & GATS 
Art. V 
Panama - El Salvador (Panama - 
Central America) 11-Apr-03 Goods & Services 2005 GATT Art. XXIV & GATS 
Art. V 
Chile - El Salvador (Chile - Central 
America) 01-Jun-02 Goods & Services 2004(G) 
2004(S) GATT Art. XXIV & GATS 
Art. V 
Dominican Republic - Central America 04-Oct-01 Goods & Services 2012 GATT Art. XXIV & GATS 
Art. V 
Central American Common Market 
(CACM) 04-Jun-61 Goods 1961 GATT Art. XXIV 
CACM - Accession of Panama 06-May-13 Goods Not notified 
Venezuela - El Salvador [LAIA, 
AAP.A25TM N°27] 09-Jul-86 Goods Not notified 
GUATEMALA 
EU - Central America 01-Dec-13* Goods & Services 2013 GATT Art. XXIV & GATS 
Art. V 
Chile - Guatemala (Chile - Central America) 23-Mar-10 Goods & Services 2012 GATT Art. XXIV & GATS 
Art. V 
Colombia - Northern Triangle (El 
Salvador, Guatemala, Honduras) 12-Nov-09 Goods & Services 2012 GATT Art. XXIV & GATS 
Art. V 
Panama - Guatemala (Panama - Central America) 20-Jun-09 Goods & Services 2013 GATT Art. XXIV & GATS 
Art. V 
Guatemala - Chinese Taipei 01-Jul-06 Goods & Services 2011 GATT Art. XXIV & GATS 
Art. V 
Dominican Republic - Central America - United States Free Trade Agreement (CAFTA-DR) 01-Jul-06 Goods & Services 2006 GATT Art. XXIV & GATS 
Art. V 
Dominican Republic - Central 
America 15-Oct-01 Goods & Services 2012 GATT Art. XXIV & GATS 
Art. V 
Central American Common Market (CACM) 04-Jun-61 Goods 1961 GATT Art. XXIV 
CACM - Accession of Panama 06-May-13 Goods Not notified 
Cuba - Guatemala [LAIA, 
AAP.A25TM N°36] 18-May-01 Goods Not notified 
Venezuela - Guatemala [LAIA, 
AAP.A25TM N°23]  10-Apr-86 Goods Not notified 
Belize - Guatemala 04-Apr-10 Goods Not notified 
Ecuador - Guatemala 19-Feb-13 Goods  Not notified 
HONDURAS 
Canada - Honduras 01-Oct-14 Goods & Services 2015 GATT Art. XXIV & GATS 
Art. V 
EU - Central America 01-Aug-13* Goods & Services 2013 GATT Art. XXIV & GATS 
Art. V 
Colombia - Northern Triangle 
(El Salvador, Guatemala, Honduras) 27-Mar-10 Goods & Services 2012 GATT Art. XXIV & GATS 
Art. V 
Panama - Honduras (Panama - Central America ) 09-Jan-09 Goods & Services 2009 GATT Art. XXIV & GATS 
Art. V 
Chile - Honduras (Chile - Central 
America) 19-Jul-08 Goods & Services 2011 GATT Art. XXIV & GATS 
Art. V 
El Salvador- Honduras - Chinese Taipei 15-Jul-08 Goods & Services 2010 GATT Art. XXIV & GATS 
Art. V 
Dominican Republic - Central 
America - United States Free Trade 
Agreement (CAFTA-DR) 01-Apr-06 Goods & Services 2006 GATT Art. XXIV & GATS 
Art. V 
Dominican Republic - Central 
America 19-Dec-01 Goods & Services 2012 GATT Art. XXIV & GATS 
Art. V 
Central American Common Market 
(CACM) 04-Jun-61 Goods 1961 GATT Art. XXIV 
CACM - Accession of Panama 06-May-13 Goods Not notified 
Venezuela - Honduras [LAIA, 
AAP.A25TM N°16] 22-Sep-86 Goods Not notified 
NICARAGUA 
EU - Central America 01-Aug-13* Goods & Services 2013 GATT Art. XXIV & GATS 
Art. V 
Chile - Nicaragua (Chile - Central 
America) 19-Oct-12 Goods & Services 2013 GATT Art. XXIV & GATS 
Art. V 
Panama - Nicaragua (Panama - 
Central America) 21-Nov-09 Goods & Services 2013 GATT Art. XXIV & GATS 
Art. V WT/REG349/1 
 
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  RTA Name Date of entry 
into force Coverage GATT/WTO Notification 
Year WTO Provision 
Nicaragua - Chinese Taipei 01-Jan-08 Goods & Services 2009 GATT Art. XXIV & GATS 
Art. V 
Dominican Republic - Central 
America - United States Free Trade 
Agreement (CAFTA-DR) 01-Apr-06 Goods & Services 2006 GATT Art. XXIV & GATS 
Art. V 
Dominican Republic - Central America 03-Sep-02 Goods & Services 2012 GATT Art. XXIV & GATS 
Art. V 
Global System of Trade Preferences 
among Developing Countries (GSTP) 19-Apr-89 Goods 1989 Enabling Clause 
Central American Common Market (CACM) 04-Jun-61 Goods 1961 GATT Art. XXIV 
CACM - Accession of Panama  06-May-13 Goods Not notified 
Venezuela - Nicaragua [LAIA, 
AAP.A25TM N°25]  18-Jan-74 Goods Not notified 
*  The notifications made in February 2013 (s ee WT/REG332/N/1 and S/C/N/680) stated that: 
"Provisional application of the Ag reement by all signatory parties is  expected in the course of the 
second quarter 2013"; Further notifications to confirm the dates of entry into force between the EU and Central American countries are awaited. 
Source: WTO Secretariat. 
5.8  Government procurement 
5.29.  Chapter X concerns government procurement. It will apply between the Parties when they 
agree on Annexes on coverage, reservations an d general notes and these enter into force in 
conformity with Article 21.4 (Amendments). Annex 10.2 refers to coverage, Annex 10.10 to procurement documents, and Annex 10.8 lists means for the publication of tenders. 
5.30.  The Chapter applies to measures adopted or maintained by a Party relating to procurement 
covered by the Agreement. This includes procur ement of goods and services or both by such 
methods as purchase, lease or rental, with or without an option to buy; listed in Annex 10.2 and 
subject to the conditions therein, carried out by  a procurement entity listed in Annex 10.2. The 
Chapter does not apply among others to: (i) non contractual agreements or any form of assistance a Party provides, including grants, loans, equity transfers, fiscal incentives, subsidies, guarantees, cooperative agreements and procurement to provid e international assistance; (ii) the procurement 
or acquisition of fiscal agency or depository services, liquidation or management services for 
regulated financial institutions or services related to the sale, redemption and distribution of public debt; (iii) public employment contracts and employment related measures; (iv) purchases made 
under exceptionally advantageous conditions that only arise in the very short term, such as unusual 
disposals by companies that normally are not suppliers, or disposals of assets of businesses in liquidation or receivership; (v) financial services. Nothing in the Chapter shall be construed to 
prevent any Party from taking measures relating to goods and services of persons with disabilities, 
philanthropic institutions or prison labour; measures necessary to protect public morals, order or safety; human, animal or plant life or health, including conservation measures; or measures necessary to protect intellectual property, provided they are not applied in a discriminatory manner 
(Article 10.2). The  Parties have indicated that the Chapter is not in force and that they have not 
agreed on thresholds. 
5.31.  The Parties grant national treatment to each other's goods, services and suppliers 
(Article 10.3). For the purpose of covered procurement the Parties shall not apply rules of origin 
different from those applied in the normal course of trade, to imported goods from the other Party 
(Article 10.4) and they shall refrain from taking account of, seeking or imposing any offset 
(Article 10.6). Each Party shall establish or designate at least one impartial and independent 
authority to receive and review suppliers' challenges (Article 10.17). 
5.32.  The Chapter also contains general provisions including on valuation of contracts (Article 10.7), 
publication of notices (10.8), technical specifications (Article 10.11), deadlines (Article 10.9), 
procurement procedures (Article 10.13), information disclosure (Article 10.18) and coverage 
modification and rectification (Article 10.20), among others. WT/REG349/1 
 
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  5.33.  None of the Parties are party to the WTO Agreement on Government Procurement (GPA). 
However, this Chapter follows in general the substance of the GPA.  
5.9  Intellectual property rights 5.34.  Chapter XVI deals with Intellectual Property. The Parties shall provide in their territories to 
nationals of another Party adequate and effective pr otection and enforcement of intellectual property 
rights, while ensuring that measures to enforce intellectual property rights do not themselves become barriers to legitimate trade. Additionally , they may implement in their domestic law more 
extensive protection of intellectual property rights than is required under the Chapter XVI, provided 
that such protection is not inconsistent with the Chapter (Article16.2).
106 Under Article 16.4, subject 
to exceptions and exemptions in Articles 3, 4 and 5 of the TRIPS Agreement, the Parties shall accord 
treatment no less favourable than they accord to their own nationals and any advantage, favour, 
privilege or immunity granted to another State, in relation to intellectual property protection107 
(Article 16.4). They may take appropriate measures consistent with the Chapter to prevent abuse of intellectual property rights or recourse to practi ces having adverse effect on trade and international 
transfer of technology (Article 16.5). 
5.35.  The Parties, recognizing the importance of technical cooperation to facilitate the 
implementation of the Chapter and to ensure th e protection of IPRs, shall provide each other 
technical assistance on mutually agreed terms. They  shall cooperate with a view to eliminating trade 
in goods that infringe intellectual property rights. For this purpose, each Party shall establish and notify the other Parties of contact points in its government and shall exchange information concerning trade in infringing goods (Article 16.6).  
5.36.  Concerning copyrights and related rights (Article l6.7-10), the Parties shall protect rights 
covered by Article 2 of the Bern Convention,  including any other works that embody original 
expression within the meaning of that Convention , such as computer programs or compilations of 
data, which by reason of the selection, summary or arrangement of their contents constitute 
intellectual creations. The protection of compilations  of data shall not extend to the data itself, or 
prejudice any copyright subsisting in that data. Any person acquiring or holding economic rights may 
freely and separately transfer them by contract  for exploitation and employment and that any 
person acquiring or holding such economic rights by virtue of a contract, including contracts of 
employment underlying the creation of works and so und recordings, shall be able to exercise those 
rights in its own name and enjoy fully the benefits derived from those rights. The Parties shall 
provide to broadcasters the right to authorize or prohibit reception of its broadcasts for commercial 
use (Article 16.9). Each Party shall make it a civil offense, and may make it also a criminal offense, according to its domestic law, to receive in connection with commercial activities, or further 
distribute, an encrypted program carrying satellite  signal that has been received without the 
authorization of the lawful distributor of the signal.  
5.37.  On trademarks (Articles 16.11-13), a trademark is considered to be well known when relevant 
public or commercial sectors in the Party's territory know it as a result of the promotion of the 
trademark by a person using it in relation with his goods or services. The Parties shall not register as a trademark signs that are the same or similar to well-known trademarks if its use could indicate a connection with the owner of the registered trademark and his interests could be damaged. The 
initial registration of a trademark shall be fo r ten-years and may be renewed indefinitely for 
successive ten-year periods. A registration may be ca ncelled only after an uninterrupted period of at 
least three years of non-use. 
5.38.  Concerning Article 27.3(b) of the TRIPS Agreement, the Parties shall provide protection for 
new plant varieties either by patents, or an effective sui generis system or a combination thereof, in 
                                               
106 To provide effective protection and enforcement Part ies integrate their rights and obligations under the 
following instruments: TRIPS Agreement; Lisbon Agreement (1979); Rome Convention (1961); Bern Convention (1971); Brussels Convention (1974); Geneva Convention (1971); Paris Convention(1967); Patent Cooperation Treaty (2001); WIPO Copyright Treaty (1996); and WIPO Performances and Phonograms Treaty (1996). 
107 "Protection" shall include matters affecting the availability, acquisition, scope, maintenance and 
enforcement of IP rights as well as those matters affecting the use of intellectual property rights specifically addressed in Chapter XVI.  WT/REG349/1 
 
- 90 - 
 
  conformity with their domestic law. They shall cons ider the implementation of substantive provisions 
of the UPOV Convention for the Protection of New Varieties of Plants.  
5.39.  Utility Models shall be protected in conformity with national legislation. For Industrial Designs 
Articles l6.16 and 16.17 of the Agreement are similar to TRIPS Articles 25 and 26. 
5.40.  For the protection of undisclosed information the Parties may require that industrial secrets be 
evidenced in documents, electronic or magnetic means, optical discs, microfilms, films or other 
similar instruments. The Parties may not limit the duration of protection while conditions set in 
TRIPS Agreement Article 39.2 persist. Finally, no Party shall discourage voluntary licensing through 
excessive or discriminatory requirements nor impose conditions that dilute the value of trade secrets. 
5.41.  Concerning geographical indications (GIs) and designations of origin, in conformity with TRIPS 
Article 22.1, names listed in Annex 16.19(a)
108 are protected in Costa Rica, El Salvador, Guatemala, 
Honduras and Nicaragua and names listed in Annex 16.19(b)109 are protected in Mexico. The Parties 
providing protection to these GIs and designations  of origin under the Lisbon Convention shall 
maintain that protection in addition to protection under Article 16.20 of the Agreement which is very 
similar to TRIPS Article 22.2-4. Additionally, a Party shall provide the means to prevent the import, production or sale of a good using a GI or designation of origin protected in another Party, unless 
the good has been produced and certified in that Party in conformity with the laws, rules and 
standards applicable to such goods.  
                                               
108 Costa Rica: Banano de Costa Ri ca (bananas); El Salvador: Café  Apaneca-llamapetec (coffee); 
Guatemala: Café Antigua (cof fee) and Ron de Guatemala (spirit); Hond uras: Café Marcala, Cafés del Occidente 
Hondureño, Honduras Western Coffee, Café Camapara, Café Cagual, Café Congolon, Café Erapuca, Café 
Guisayote (coffee); and Nicaragua: Café de Nicaragua (coffee) y Queso Chontaleño (cheese). 
109 Mexico: Tequila, Mezcal, Sotol, Bacanora, and Char anda (spirits); Olinalá, Talavera and Ámbar de 
Chiapas (handicrafts); Vainilla de Papantla, Chile Haba nero de la Península de Yucatán, Mango Ataulfo del 
Soconusco de Chiapas (foods); and Café Veracruz and Café Chiapas (coffee). WT/REG349/1 
 
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  ANNEX 1 
1. Tables A1.1, A1.2, A1.3, A1.4, A1.5 and A1.6 sh ow tariff liberalization by Mexico, Costa Rica, 
El Salvador, Guatemala, Honduras and Nicaragua by all products, agricultural products and non-agricultural products. 
2. In 2012, the average MFN tariff applied by Mexico was 6.1%. Until 2012, when the Agreement 
entered into force, under the former Mexico-Northern Triangle and Mexico-Nicaragua Bilateral Agreements, the average tariff for imports from El Salvador and Nicaragua respectively had fallen to 
1.0% and 0.1%. The average tariff applied to agricu ltural products had been reduced from 20.2% to 
9.1% for imports from El Salvador and to 1.2% fo r Nicaragua while that applied to non-agricultural 
products from 4.6% to 0.1% for El Salvador and to zero for Nicaragua. The tariff applied to agricultural products was about 4.4 times that a pplied to non-agricultural products. Salvadoran 
exporters enjoyed a relative margin of preference of  55.0% in the case of agricultural products and 
97.8% in the case of non-agricultural products, as compared with the MFN tariff in force. Nicaraguan exporters enjoyed a relative margin of preference of 94.1% for agriculture and 100% for non-
agricultural products. The share of duty-free lines with respect to imports from El Salvador had risen 
from 58.3% in the MFN regime to 97.9% (from 21.6% to 85.3% in the case of agricultural products and from 62.3% to 99.3% in the case of non-agricultural products). For imports from Nicaragua the 
share of duty free lines increased to 99.8% overal l, and to 97.5% and 100% for agricultural and 
non-agricultural products, respectively. Under the Agreement, there will be no change in the share of duty free lines for imports from El Salvador unt il the end of implementation, in 2021, when it is 
expected that the proportion of duty-free tariff lines for imports from El Salvador will have increased 
to 98.1%, 85.3% for agricultural products and 99.5% for non-agricultural products. In the case of 
Nicaragua all liberalization takes place upon entry into force of the Agreement. 
3. In 2013, the average MFN tariff applied by Mexico was 5.7% for Costa Rica and Honduras and 
5.9% for Guatemala; the difference between the average MFN tariff for Costa Rica, Honduras and 
Guatemala is due to the fact that that the MFN tariff for Guatemala is based on the HS 2012 nomenclature. When the Agreement entered into fo rce, under the former Mexico-Northern Triangle 
and the Mexico-Costa Rica Agreements, the averag e tariff applied to imports from Costa Rica had 
fallen to 0.7% and that for imports from Honduras and Guatemala to 0.8%. The average tariff for agricultural products had been reduced from 17.5% to 6.7% for imports from Costa Rica, to 6.4% for Honduras and from 18.4% to 7.2% for Guatemala, and that for non-agricultural products from 
4.4% to 0.0% for Costa Rica, 0.1% for Honduras and from 4.5% to 0.1% for Guatemala. The tariff 
on agricultural products was about four times that for non-agricultural products. Costa Rican exporters enjoyed a relative margin of preference of  61.7% in the case of agricultural products and 
100% in the case of non-agricultural products, as compared with the MFN tariff in force. Honduran 
exporters enjoyed a relative margin of preferen ce of 63.4% for agriculture and 97.7% for non-
agricultural products. Guatemalan exporters enjoyed a relative margin of preference of 60.9% in the 
case of agricultural products and 97.8% in the case  of non-agricultural products, as compared with 
the MFN tariff in force. The share of duty-free lines with respect to imports from Costa Rica had risen 
from 59.3% in the MFN regime to 98.8% (from 23.1% to 88.1% in the case of agricultural products and from 63.3% to 99.9% in the case of non-agricu ltural products). For imports from Honduras the 
share of duty free lines had increased to 98% over all, and to 87.4% and 99.1%, respectively, for 
agricultural and non-agricultural products. For imports from Guatemala it had risen from 58.7% in the MFN regime to 98% (from 22.4% to 86.6% in the case of agricultural products and from 62.9% 
to 99.3% in the case of non-agricultural pr oducts). Under the Agreement by the end of 
implementation (2020 for Costa Rica and Guatemala an d 2022 for Honduras), it is expected that the 
proportion of duty-free tariff lines for imports from Costa Rica will still be 98.8%, with a slight 
increase to 88.4% for agricultural products; for imports from Honduras it will have increased to 
98.3% with a slight increase to 99.5%, for non-agricultural products; and for imports from Guatemala it will have increased to 98.2%, with an increase to 99.6% in the case of non-agricultural products. WT/REG349/1 
 
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  Table A1.1 Mexico: 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 
tariffs Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariffs Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariffs 
Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 
2012 6.1 14.7 58.3  20.2 25.8 21.6 4.6 12.2 62.3  
El Salvador 2012 1.0 50.3 97.9 9.1 66.0 85.3 0.1 17.9 99.3 
 2013 1.0 50.2 97.9 9.1 65.9 85.3 0.1 17.9 99.3 
 2014 1.0 50.2 97.9 9.1 65.9 85.3 0.1 17.8 99.3 
 2015 1.0 50.2 97.9 9.1 65.9 85.3 0.1 17.7 99.3 
 2016 1.0 50.1 97.9 9.1 65.9 85.3 0.1 17.6 99.3 
 2017 1.0 50.1 97.9 9.1 65.9 85.3 0.1 17.3 99.3 
 2018 1.0 49.7 97.9 9.1 65.9 85.3 0.1 16.3 99.3 
 2019 1.0 49.4 97.9 9.1 65.9 85.3 0.1 15.3 99.3 
 2020 1.0 49.1 97.9 9.1 65.9 85.3 0.1 14.3 99.3 
 2021 1.0 53.6 98.1 9.1 66.3 85.3 0.1 18.2 99.5 
Nicaragua 2012 0.1 83.8 99.8 1.2 83.8 97.5 0.0 0.0 100.0 
 2013 0.1 83.8 99.8 1.2 83.8 97.5 0.0 0.0 100.0 
 2014 0.1 83.8 99.8 1.2 83.8 97.5 0.0 0.0 100.0 
 2015 0.1 83.8 99.8 1.2 83.8 97.5 0.0 0.0 100.0 
 2016 0.1 83.8 99.8 1.2 83.8 97.5 0.0 0.0 100.0 
 2017 0.1 83.8 99.8 1.2 83.8 97.5 0.0 0.0 100.0 
 2018 0.1 83.8 99.8 1.2 83.8 97.5 0.0 0.0 100.0 
 2019 0.1 83.8 99.8 1.2 83.8 97.5 0.0 0.0 100.0 
 2020 0.1 83.8 99.8 1.2 83.8 97.5 0.0 0.0 100.0 
 MFN-
2013 5.7 14.0 59.3  17.5 22.9 23.1 4.4 12.0 63.3  
Costa Rica 2013 0.7 58.9 98.8 6.7 61.3 88.1 0.0 16.0 99.9 
 2014 0.7 58.9 98.8 6.7 61.2 88.1 0.0 16.0 99.9 
 2015 0.7 58.8 98.8 6.7 61.1 88.1 0.0 16.0 99.9 
 2016 0.7 58.8 98.8 6.7 61.1 88.1 0.0 16.0 99.9 
 2017 0.7 59.2 98.8 6.7 61.5 88.2 0.0 16.0 99.9 
 2018 0.7 59.1 98.8 6.7 61.5 88.2 0.0 16.0 99.9 
 2019 0.7 59.1 98.8 6.7 61.4 88.2 0.0 16.0 99.9 
 2020 0.7 59.9 98.8 6.7 62.4 88.4 0.0 16.0 99.9 
Honduras 2013 0.8 39.3 98.0 6.4 55.2 87.4 0.1 16.6 99.1 
 2014 0.8 39.1 98.0 6.4 55.2 87.4 0.1 16.2 99.1 
 2015 0.7 38.9 98.0 6.4 55.2 87.4 0.1 15.7 99.1 
 2016 0.7 38.7 98.0 6.4 55.2 87.4 0.1 15.3 99.1 
 2017 0.7 40.6 98.1 6.4 55.2 87.4 0.1 16.9 99.2 
 2018 0.7 40.5 98.1 6.4 55.2 87.4 0.1 16.6 99.2 
 2019 0.7 40.0 98.1 6.4 55.2 87.4 0.1 15.4 99.2 
 2020 0.7 39.6 98.1 6.4 55.2 87.4 0.1 14.2 99.2 
 2021 0.7 39.1 98.1 6.4 55.2 87.4 0.1 13.0 99.2 
 2022 0.7 44.8 98.3 6.4 55.2 87.4 0.1 18.4 99.5 
 MFN-
2013 5.9 14.5 58.7 18.4 23.9 22.4 4.5 12.2 62.9 
Guatemala 2013 0.8 43.5 98.0  7.2 57.7 86.6 0.1 14.9 99.3  
 2014 0.8 43.0 98.0 7.2 57.7 86.6 0.1 13.6 99.3 
 2015 0.8 49.6 98.2 7.2 57.7 86.6 0.1 21.3 99.6 
 2016 0.8 49.6 98.2 7.2 57.7 86.6 0.1 21.3 99.6 
 2017 0.8 49.6 98.2 7.2 57.7 86.6 0.1 21.3 99.6 
 2018 0.8 49.6 98.2 7.2 57.7 86.6 0.1 21.3 99.6 
 2019 0.8 49.6 98.2 7.2 57.7 86.6 0.1 21.3 99.6 
 2020 0.8 49.6 98.2 7.2 57.7 86.6 0.1 21.3 99.6 
a WTO definition 
Note: Covers HS chapters 1-97. Fo r 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 2007 nomenclature except for Mexico with Guatemala which is based on HS 2012 
Nomenclature. 
Source: WTO estimates based on data pr ovided by the Mexican authorities. 
4. In 2013, under the former bilateral Agreement between Mexico and Costa Rica, the average 
preferential tariff applied by Costa Rica to imports from Mexico was 0.78 as compared with an 
applied MFN rate of 6.69%. Up to 2013, under the bilateral Mexico-Costa Rica Agreement, the WT/REG349/1 
 
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  average tariff for agricultural products from Mexico had fallen from 13.76% to 5.49% and that 
applied to non-agricultural products from 5.53% to 0.01%, which gave Mexico's exporters a relative margin of preference of 60.1% and 99.8%, respectively, as compared with the MFN tariff in force. Costa Rica's share of duty-free tariff lines was 97.78%: 85.0% for agricultural products and 99.86 
for non-agricultural products. Upon entry into force of the Agreement, 97.96% of Costa Rica's tariff 
lines became duty free for imports from Mexico: 86.17% for agricultural products and 99.88% for 
non-agricultural products, which gave Mexican exporters a relative margin of preference of 63% for 
agricultural products, the margin of preference fo r non-agricultural products remaining at 99.8%. All 
liberalization of Costa Rica's non-agricultural imports occurred upon entry into force. At the end of the implementation period, in 2021, it is expected th at 86.38% of agricultural tariffs will be zero for 
imports from Mexico. The share of duty-free tariff lines for all products will be 97.99%.
 
Table A1.2 Costa Rica: Indicators of MFN tari ff rates and preferential rates for imports 
from Mexico  
Origin of 
goods 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 (2013) 6.69 6.88 2.81 13.76 13.76 0.00 5.53 5.72 3.27 
Mexico-Costa 
Rica 0.78 35.11 97.78 5.49 36.60 85.00 0.01 8.94 99.86 
Mexico-Central 
America          
2013 0.73 35.69 97.96 5.13 37.07 86.17 0.01 10.07 99.88 
2014 0.73 35.60 97.96 5.11 36.97 86.17 0.01 10.07 99.88 
2015 0.72 35.50 97.96 5.10 36.87 86.17 0.01 10.07 99.88 
2016 0.72 35.40 97.96 5.08 36.77 86.17 0.01 10.07 99.88 
2017 0.72 35.56 97.98 5.07 36.94 86.28 0.01 10.07 99.88 
2018 0.72 35.55 97.98 5.07 36.93 86.28 0.01 10.07 99.88 
2019 0.72 35.54 97.98 5.07 36.93 86.28 0.01 10.07 99.88 
2020 0.72 35.80 97.99 5.07 37.21 86.38 0.01 10.07 99.88 
2021 0.72 35.80 97.99 5.07 37.21 86.38 0.01 10.07 99.88 
a WTO Definition. 
Note: Based on the HS 2007 nomenclature. Source:  WTO estimates based from Costa Rican authorities. 
5. In 2012, under the former Mexico-Northern Triangle Agreement, the average preferential tariff 
applied by El Salvador to imports from Mexico was 0.9%, as compared with an applied MFN rate of 6.3%. The average tariff applied to agricultural products from Mexico had fallen from 12.5% to 4.6% and that applied to non-agricultural products from 5.3% to 0.3%, which gave Mexico's 
exporters a relative margin of preference of 63 .2% and 94.3%, respectively, as compared with the 
MFN tariff in force. The tariff applied to agricultural products was about 2.3 times that applied to non-agricultural products. El Salvador's share of duty-free tariff lines had increased from 47.6% to 
95.9%: the duty-free lines corresponding to agricu ltural products increased from 27.4% to 82.7% 
while those corresponding to non-agricultural products increased to a lesser extent, from 51.1% to 98.2%. By the end of the implementa tion period of the Agreement, in 2021, it is expected that the 
proportion of duty-free tariff lines for imports from Mexico will have increased to 96.6%, 82.8% for 
agricultural products and 99% for non-agricultural products.  WT/REG349/1 
 
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  Table A1.3 El Salvador: Indicators of MFN ta riff rates and preferential rates for imports 
from Mexico  
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 2012 6.3 12.1 47.6 12.5 17.2 27.4 5.3 10.8 51.1 
Mexico 2012 0.9 22.8 95.9 4.6 26.3 82.7 0.3 16.9 98.2 
 2013 0.9 22.7 95.9 4.6 26.3 82.7 0.3 16.7 98.2 
 2014 0.9 22.5 95.9 4.6 26.3 82.7 0.3 16.1 98.2 
 2015 0.9 22.2 95.9 4.6 26.3 82.7 0.3 15.4 98.2 
 2016 0.9 22.0 95.9 4.6 26.3 82.7 0.3 14.8 98.2 
 2017 0.9 21.7 95.9 4.6 26.3 82.7 0.3 14.1 98.2 
 2018 0.9 21.2 95.9 4.6 26.2 82.7 0.2 12.8 98.2 
 2019 0.8 20.7 95.9 4.5 26.2 82.7 0.2 11.5 98.2 
 2020 0.8 20.2 95.9 4.5 26.2 82.7 0.2 10.2 98.2 
 2021 0.8 23.6 96.6 4.5 26.4 82.8 0.2 15.4 99.0 
a WTO Definition. 
Note: Based on the HS 2012 nomenclature. Source:  WTO estimates based on El Salvador authorities, Agreement and WTO-IDB database. 
6. In 2013 under the former Mexico-Northern Triang le Agreement, the average preferential tariff 
applied by Guatemala to imports from Mexico was 0.4%, as compared with an applied MFN rate of 5.7%. The average tariff applied to agricultural products from Mexico had fallen from 9.5% to 2.2% 
and that applied to non-agricultural products from 5% to 0.1%, which gave Mexico's exporters a 
relative margin of preference of 76.8% and 98%, respectively, as compared with the MFN tariff in force. Guatemala's share of duty-free tariff lines had increased from 49.5% to 96.7%: the duty-free 
lines corresponding to agricultural products increased from 27.9% to 83.7% while those 
corresponding to non-agricultural products incr eased from 53.3% to 98.9%. When the Agreement 
entered into force, the share of duty-free lines in creased to 83.9% for agricultural products and to 
99% for non-agricultural product. At the end of the implementation period, in 2015, 96.8% of 
Guatemala's tariffs will be ze ro for imports from Mexico.  
Table A1.4 Guatemala: Indicators of MFN tari ff rates and preferential rates for imports 
from Mexico 
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 2013 5.7 11.2 49.5 9.5 13.2 27.9 5.0 10.7 53.3 
Mexico-
Northern 
Triangle 2013 0.4 13.1 96.7 2.2 13.8 83.7 0.1 11.3 98.9 
Mexico-
Central 
America 2014 0.4 12.8 96.7 2.2 13.9 83.9 0.1 9.9 99.0 
 2015 0.4 12.8 96.8 2.2 13.9 83.9 0.1 10.0 99.0 
a WTO definition. 
Note: Based on the HS 2012 nomenclature. Source: WTO estimates based on data prov ided by the Guatemalan authorities.  
7. Under the former Mexico-Northern Triangle Agr eement in 2013, the average preferential tariff 
applied by Honduras to imports from Mexico was 0.7%, as compared with an average applied MFN 
rate of 6.0%. Until 2013 under the Mexico-Northern Triangle Agreement the average tariff applied to 
agricultural products from Mexico had fallen from 10.7% to 3.4% and that applied to non-
agricultural products from 5.1% to 0.2%, which gave Mexico's exporters a relative margin of 
preference of 68.2% and 96.1%, respectively, as compared with the MFN tariff in force. Honduras' share of duty-free tariff lines had increased from 47.9% to 95.6%: the duty-free lines corresponding WT/REG349/1 
 
- 95 - 
 
  to agricultural products increased from 27.0% to 84.5% while those corresponding to non-
agricultural products increased to a lesser ex tent, from 51.1% to 97.5%. At the end of the 
implementation period of the Agreement, in 2022, 96.8% of Honduras tariffs will be zero for imports from Mexico, the share of duty-free lines for agricult ural products will still be 84.5% while that for 
non-agricultural products will have increased to 98.9%. 
Table A1.5 Honduras: Indicators of MFN tari ff rates and preferential rates for imports 
from Mexico  
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 2013 6.0 11.4 47.9 10.7 14.7 27.0 5.1 10.6 51.5 
Mexico-
Northern 
Triangle 2013 0.7 15.8 95.6 3.4 21.8 84.5 0.2 9.4 97.5 
Mexico-
Central 
America 2014 0.7 15.7 95.6 3.4 21.8 84.5 0.2 9.2 97.5 
 2015 0.7 15.5 95.6 3.4 21.8 84.5 0.2 8.7 97.5 
 2016 0.7 15.2 95.6 3.4 21.8 84.5 0.2 8.3 97.5 
 2017 0.7 15.3 95.6 3.4 21.8 84.5 0.2 8.1 97.6 
 2018 0.7 15.1 95.6 3.4 21.8 84.5 0.2 7.7 97.6 
 2019 0.6 14.7 95.6 3.4 21.8 84.5 0.2 7.0 97.6 
 2020 0.6 14.4 95.6 3.4 21.8 84.5 0.2 6.2 97.6 
 2021 0.6 14.0 95.6 3.4 21.8 84.5 0.1 5.5 97.6 
 2022 0.6 18.6 96.8 3.4 21.8 84.5 0.1 10.7 98.9 
a WTO Definition. 
Note: Based on the HS 2012 nomenclature. Source:  WTO estimates based from Hondur as authorities and WTO-IDB database. 
8. In 2012, under the former bilateral Agreemen t between Mexico and Nicaragua, the average 
preferential tariff applied by Nicaragua to imports from Mexico was 0.1%, as compared with an applied MFN rate of 6.2%. The average tariff applied to agricultural products from Mexico had fallen 
from 11.7% to 0.8% and that applied to non-agricultural products from 5.2% to 0.01%, which gave 
Mexico's exporters a relative margin of preference of 93.2% and 99.8%, respectively, as compared with the MFN tariff in force. Nicaragua's share of duty-free tariff lines was 98.4%: 96.8% for 
agricultural products and 98.7% for non-agricultural  products. As of 2012, upon entry into force of 
the Agreement, in which all liberalization took place at entry into force, 99.6% of Nicaragua's tariffs were duty-free for imports from Mexico: 97.6% in th e case of agricultural products and 100% in the 
case of non-agricultural products, which gave Mexico 's exporters an average margin of preference of 
94% and 100%, respectively, as compared with the MFN tariff in force.  
Table A1.6 Nicaragua: Indicators of MFN tari ff rates and preferential rates for imports 
from Mexico 
Origin of 
goods 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 2012 6.2 11.6 46.4 11.7 15.5 24.0 5.2 10.5 50.6 
Duty-free under(2012): 
Mexico-
Nicaragua 0.1 7.8 98.4 0.8 24.2 96.9 0.01 0.6 98.7 
Mexico-Central 
America 0.1 29.5 99.6 0.7 29.5 97.6 0.0 0.0 100.0 
a WTO Definition. 
Note: Based on the HS 2012 nomenclature. 
Source:  WTO estimates based on Nicara guan authorities and WTO-IDB database. WT/REG349/1 
 
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  9. Table A1.7 below shows the market access conditions for Costa Rica's top 25 export products 
in Mexico. In 2010-2012 Costa Rica's exports of these top 25 products accounted for 63.5% of its total exports and covered 189 tariff lines, of which 9, representing 20.5% of total exports, were already duty-free under the MFN regime. By 2013 un der the Mexico-Costa Rica Bilateral Agreement, 
another 117 tariff lines had become duty-free. No further liberalization is envisaged under the 
Agreement of these lines and at the end of the im plementation period 8 tariff lines will still be 
subject to duties: bananas, including fresh or dried plantains; coffee, not decaffeinated; food 
preparations, n.e.s. and cane sugar with average applied MFN rates in 2012 ranging from 
14.5%-20% as well as a specific duty on three tariff lines.
 
Table A1.7 Mexico: Market access opport unities for Costa Rica's top 25 exports  
Costa Rica's top export products in 2010-2012  Access conditions to Me xico's import markets  
HS number and description of the product Share in 
global 
exports 
(%) MFN 2013  
Duty-free under 
Mexico-Costa Rica 
(2013) 
Remain dutiable 
under Mexico-
Central America Average 
MFN 
applied rate 
(%) Duty 
Free Dutiable 
Lines 
854231 -- processors and controllers, 
whether or not combined with memories, converters, logic circuits, amplifiers, clock and 
timing circuits, or other circuits 15.9
 0.0 3    
080430 - pineapples 7.2 20.0  1 1  
080300 Bananas, including plantains, 
fresh or dried. 7.0 20.0  1  1  
901839 -- othe r 5.5 5.0 2 4 4  
090111 -- not decaffeinated 3.5  20.0  2  2  
210690 - othe r 2.9 14.5  12 10 2 
847330 - parts and accessories of the 
machines of heading 84.71 2.7 0.0 4    
901890 - other instruments and 
appliances 2.7 5.6 11 21 21  
902139 -- othe r 2.1  3.0 2 3 3  
300490 - othe r 1.8 4.4 28 23 23  
854449 -- othe r 1.5  4.3 1 6 6  
401110 - of a kind used on motor cars 
(including station wagons and 
racing cars) 1.4 15.0  9 9  
151110 - crude oil 1.3  3.0  1 1  
481840 - sanitary towels and tampons, 
napkins and napkin liners for 
babies and similar sanitary 
articles 1.1 5.0  2 2  
620711 -- of cotton 0.9  25.0  1 1  
170111 -- cane suga r 0.7 0.338 Dls 
EUA per Kg  3  3 
080719 -- othe r 0.7  20.0  2 2  
701090 - othe r 0.7 10.0  4 4  
300210 - antisera and other blood 
fractions and modified 
immunological products, whether or not obtained by means of biotechnological processes 0.6
 3.9 7 14 14  
902190 - othe r 0.6 0.0 1    
060290 - othe r 0.6  8.6 2 12 12  
071410 - manioc (cassava) 0.6 15.0  2 2  
210390 - othe r 0.6  20.0  1 1  
853669 -- othe r 0.6 1.7 2 1 1  
720449 -- othe r 0.6  0.0 1    
Total of above 63.5  64 125 117 8 
Note: Based on the HS 2007 nomenclature. 
Source: WTO estimates based on data provided by th e Mexican authorities and UNSD, Comtrade database. WT/REG349/1 
 
- 97 - 
 
  10. Table A1.8 below shows the market access conditions for Mexico's top 25 export products in 
Costa Rica. In 2010-2012 Mexico's exports of these top 25 products accounted for 49.2% of its total exports and covered 79 tariff lines, of which 5, representing 8.0% of total exports, were already duty-free under the MFN regime. Until 2013, under the former bilateral Agreement between Mexico 
and Costa Rica, the remaining 68 tariff lines for Mexico's top 25 exports had become duty-free.  
Table A1.8 Costa Rica: Market access opportuni ties under the agreement for Mexico's top 
25 exports to the world 
Mexico's top export products in 2010-2012 Access Conditions to Costa Rica's import 
markets 
MFN (2013)  
Duty-free under 
the Mexico-Costa 
Rica HS number 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. 13.0 1.0  2 2 
870323 -- of a cylinder capacity exceeding 1,500 
cc but not exceeding 3,000 cc 5.5 6.6  10 10 
852872 -- other, colour 4.9 8.0  2 2 
870431 -- g.v.w. not exceeding 5 tonnes 2.2 6.3  8 8 
847149 -- other, presented in the form of 
systems 2.1 0.0 1   
851712 -- telephones for cellular networks or for 
other wireless networks 2.1 0.0 1   
710812 -- other unwrought forms 1.9 6.0  1 1 
851770 - parts 1.5 0.0 1   
870120 - road tractors for semi-trailers 1.4 1.0  1 1 
854430 - ignition wiring sets and other wiring 
sets of a kind used in vehicles, aircraft 
or ships 1.4 6.0  1 1 
851762 -- machines for the reception, 
conversion and transmission or regeneration of voic e, images or other 
data, including switching and routing apparatus 1.2 0.0 1   
847150 - processing units other than those of 
sub-heading 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 1.1 0.0 1   
710691 -- unwrought 1.1 10.0  1 1 
870829 -- other 1.0 5.5  2 2 
940190 - parts 1.0 6.0  1 1 
870332 -- of a cylinder capacity exceeding 1,500 
cc but not exceeding 2,500 cc 1.0 6.6  10 10 
271019 -- other 1.0 2.8 6 7 7 
870899 -- other 0.9 10.0  1 1 
870324 -- of a cylinder capacity exceeding 3,000 
cc 0.8 6.6  5 5 
853710 - for a voltage not exceeding 1,000 v 0.7 10.0  1 1 
870850 - drive-axles with differential, whether 
or not provided with  other transmission 
components, and non-driving axles; parts thereof 0.7 10.0  3 3 
841810 - combined refrigerator-freezers, fitted 
with separate external doors 0.7 15.0  1 1 
840991 -- suitable for use solely or principally 
with spark-ignition internal combustion piston engines 0.7 1.0  1 1 WT/REG349/1 
 
- 98 - 
 
  Mexico's top export products in 2010-2012 Access Conditions to Costa Rica's import 
markets 
MFN (2013)  
Duty-free under 
the Mexico-Costa 
Rica HS number and description of the product 
Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff lines 
Duty-
free Dutiable 
870422 -- g.v.w. exceeding 5 tonnes but not 
exceeding 20 tonnes 0.6 15.0  2 2 
870421 -- g.v.w. not exceeding 5 tonnes 0.6 6.3  8 8 
Total of above 49.2  11 68 68 
Note: Based on the HS 2007 nomenclature. 
Source: WTO estimates based on data from Costa Rican authorities, WTO-IDB and UN SD, Comtrade databases. 
11. Table A1.9 below shows the market access conditions for El Salvador's top 25 export products 
in Mexico. In 2009-2011 El Salvador's exports of these top 25 products accounted for 53.4% of its total exports and covered 108 tariff lines, of which 10, representing 6.1% of total exports, were 
already duty-free under the MFN regime. By 2012 under the former Mexico-Northern Triangle 
Agreement, another 53 tariff lines had become duty-free. No further liberalization is envisaged by the Agreement of these lines and at the end of the implementation period of the Agreement 8 tariff 
lines will still be subject to duties: coffee, not decaffeinated; tuna and bonito (sarda spp.); 
undenatured ethyl alcohol of an alcoholic strength  by volume of 80% or higher; and maize (corn) 
flour. Average applied MFN rates for these products in 2012 ranged from 10%-20%.
 
Table A1.9 Mexico: Market access opportuni ties for El Salvador's top 25 exports  
El Salvador's top export products in 2009-2011 Access conditions to Mexico's import markets 
HS number and description of the 
product Share in 
global 
exports 
(%) MFN 2012 
Duty-free undue the 
Mexico-Northern 
Triangle 
(2012) 
Remain Dutiable 
under the Mexico-
Central  Average MFN 
applied rate (%) 
Duty Free 
Dutiable Lines 
610910 - of cotton 14.6 25.0  1 1  
090111 -- not decaffeinated 6.6 20.0  2  2 
611020 - of cotton 2.7 25.0  2 2  
853221 -- tantalum 2.7 0.0 1    
611595 -- of cotton 2.3 25.0  1 1  
481810 - toilet paper 2.2 5.0  1 1  
271019 -- other 2.1 0.6 8 1 1  
610711 -- of cotton 1.8 25.0  1 1  
711291 -- of gold, including metal clad 
with gold but excluding sweepings containing other precious metals 1.7 0.0 2    
392330 - carboys, bottles, flasks and 
similar articles 1.5 15.0  2 2  
160414 -- tunas, skipjack and bonito 
(sarda spp.) 1.5 16.0 1 4  4 
300490 - other 1.5 4.4 28 23 23  
220290 - other 1.3 18.3  6 6  
621210 - brassières 1.1 25.0  1 1  
190590 - other 1.1 10.0  2 2  
610462 -- of cotton 1.0 20.0  2 2  WT/REG349/1 
 
- 99 - 
 
  El Salvador's top export products in 2009-2011 Access conditions to Mexico's import markets 
HS number and description of the 
product Share in 
global 
exports 
(%) MFN 2012 
Duty-free undue the 
Mexico-Northern 
Triangle 
(2012) 
Remain Dutiable 
under the Mexico-
Central  Average MFN 
applied rate (%) 
Duty Free 
Dutiable Lines 
611521 -- of synthetic fibres, measuring 
per single yarn less than 67 decitex 0.9 20.0  1 1  
611030 - of man-made fibres 0.9 23.3  3 3  
853229 -- other 0.9 0.0 6    
220710 - undenatured ethyl alcohol of an 
alcoholic strength by volume of 
80% vol or higher 0.9 10.0  1  1 
610990 - of other textile materials 0.8 21.7  3 3  
190410 - prepared foods obtained by the 
swelling or roasting of cereals or 
cereal products 0.8 10.0  1 1  
110220 - maize (corn) flour 0.8 15.0  1  1 
620520 - of cotton 0.8 22.5  2 2  
392321 -- of polymers of ethylene 0.8 0.0 1    
Total of above 53.4  47 61 53 8 
Note: Based on the HS 2007 nomenclature. 
Source: WTO estimates based on data provided by th e Mexican authorities and UNSD, Comtrade database. 
12. Table A1.10 below shows the market access conditions for Mexico's top 25 export products in 
El Salvador. In 2009-2011 Mexico's exports of these top 25 products accounted for 49.5% of its 
total exports and covered 71 tariff lines, of which 10, representing 23.6% of total exports, were already duty-free under the MFN regime. Until 2012, under the former Mexico-Northern Triangle 
Agreement, another 33 tariff lines had become duty -free. Under the Agreement, out of the 20 tariff 
lines that continued to be subject to duties at entry into force of the Agreement, 19 will become 
duty-free in 2021. At the end of the implementation period one tariff line, beer made from malt, 
with an applied MFN rate of 20% in 2012 will still be subject to duties.
 
Table A1.10 El Salvador: Market access o pportunities for Mexico's top 25 exports  
Mexico's top export products in 2009-2011 Access Conditions to El Salvador's import 
markets 
MFN (2012)  Duty-free  
Under the 
Agreements 
Remain Dutiable HS number and description of the product 
Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff lines 
Mexico 
Northern 
Triangle (2012) 
Mexico-Central 
America (2021) Duty-free 
Dutiable 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 12.6 0.0 2     
852872 -- other, colour 5.8 7.5 1 1 1   
870323 -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc 5.5 16.4  10 4 6  
851712 -- telephones for cellular networks or 
for other wireless networks 3.0 0.0 1     
870431 -- g.v.w. not exceeding 5 tonnes 2.1 3.0  8 4 4  
710812 -- other unwrought forms 1.8 5.0  1 1   WT/REG349/1 
 
- 100 - 
 
  Mexico's top export products in 2009-2011 Access Conditions to El Salvador's import 
markets 
MFN (2012)  Duty-free  
Under the 
Agreements 
Remain Dutiable HS number and description of the product 
Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of 
tariff lines 
Mexico 
Northern 
Triangle (2012) 
Mexico-Central 
America (2021) Duty-free 
Dutiable 
847149 -- other, presented in the form of 
systems 1.7 0.0 1     
851770 - parts 1.4 0.0 1     
854430 - ignition wiring sets and other wiring 
sets of a kind used in vehicles, aircraft or ships 1.3 5.0  1 1   
870120 - road tractors for semi-trailers 1.3 0.0 1     
271019 -- other 1.2 2.8 7 6 6   
851762 -- machines for the reception, 
conversion and transmission or 
regeneration of voic e, images or other 
data, including switching and routing 
apparatus 1.1 0.0 1     
847150 - 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 1.1 0.0 1     
870829 -- other 1.0 1.0  2 2   
870332 -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 2,500 cc 1.0 16.4  10 4 6  
940190 - parts 1.0 5.0  1 1   
710691 -- unwrought 0.9 10.0  1 1   
870899 -- other 0.8 1.0  1 1   
841810 - combined refrigerator-freezers, fitted 
with separate external doors 0.7 15.0  1 1   
853710 - for a voltage not exceeding 1,000 v 0.7 10.0  1 1   
870324 -- of a cylinder capacity exceeding 
3,000 cc 0.7 17.4  5 2 3  
870850 - drive-axles with differential, whether 
or not provided with other 
transmission components, and non-
driving axles; parts thereof 0.7 1.0  3 3   
901890 - other instruments and appliances 0.7 0.0 1     
220300 Beer made from malt. 0.6 20.0  1   1 
840991 -- suitable for use solely or principally 
with spark-ignition internal combustion piston engines 0.6 0.0 1     
Total of above 49.5  18 53 33 19 1 
Note: Based on the HS 2012 nomenclature. 
Source: WTO estimates based on data from El Salvador authorities, Agreement, WTO-IDB and UNSD, 
Comtrade databases. 
13. Table A1.11 below shows the market access conditions for Guatemala's top 25 export 
products in Mexico. In 2010-2012 Guatemala's exports of these top 25 products accounted for 55.9% of its total exports and covered 84 tariff li nes, of which 8, representing 15.6% of total 
exports, were already duty-free under the MFN regime. By 2013 under the former Mexico-Northern 
Triangle Agreement, another 39 tariff lines had become duty-free. No further liberalization of the lines remaining dutiable is envisaged by the Agreem ent and at the end of the implementation period 
of the Agreement 9 tariff lines will still be subjec t to duties: coffee, not decaffeinated; cane sugar, 
and other cane sugar; plantains and other plantains; and waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured. Of these lines five 
faced average applied MFN rates of 20% in 2013 and four lines had specific duties.
 WT/REG349/1 
 
- 101 - 
 
  Table A1.11 Mexico: Market access opport unities for Guatemala's top 25 exports  
Guatemala's top export products in 2010-2012 Access conditions to Mexico's import markets 
HS number and description of the 
product Share in 
global 
exports (%) MFN 2013 
Duty-free under 
the Mexico-
Northern 
Triangle 2013 
Remain dutiable 
under the 
Mexico-Central 
America Average MFN 
applied rate 
(%) 
Duty Free 
Dutiable Lines 
090111 -- not decaffeinated 9.5 20.0  2  2 
261610 - silver ores and concentrates 6.9 0.0 1    
610610 - of cotton 3.9 25.0  2 2  
170113 -- cane sugar specified in 
subheading note 2 to this 
chapter 3.8 AE  
(0.338 
Dls EUA 
por Kg)  1  1 
170114 -- other cane sugar 3.8 AE  
(0.338 
Dls EUA 
por Kg)  3  3 
270900 Petroleum oils and oils 
obtained from bituminous 
minerals, crude. 3.0 0.0 2    
080310 - plantains 2.6 20.0  1  1 
080390 - other 2.6 20.0  1  1 
400122 -- technically specified natural 
rubber (tsnr) 2.3 0.0 1    
610510 - of cotton 1.8 25.0  2 2  
151110 - crude oil 1.7 3.0  1 1  
300490 - other 1.5 4.3 28 22 22  
090831 -- neither crushed nor ground 1.4 20.0  1 1  
090832 -- crushed or ground 1.4 20.0  1 1  
080719 -- other 1.3 20.0  2 2  
620463 -- of synthetic fibres 1.1 22.5  2 2  
481910 - cartons, boxes and cases, of 
corrugated paper or paperboard 1.0 0.0 1    
220710 - undenatured ethyl alcohol of 
an alcoholic strength by 
volume of 80 % vol. or higher 1.0 10.0  1 1  
610620 - of man-made fibres 1.0 22.5  2 2  
400110 - natural rubber latex, 
whether or not pre-vulcanised 0.9 0.0 1    
271112 -- propane 0.8 0.0 1    
380850 - goods specified in 
subheading note 1 to this 
chapter 0.7 0.0 1    
600622 -- dyed 0.7 10.0  2 2  
210410 - soups and broths and 
preparations therefor 0.7 10.0  1 1  
220210 - waters, including mineral 
waters and aerated waters, 
containing added sugar or 
other sweetening matter or flavoured 0.7 20.0  1  1 
Total of above 55.9  36 48 39 9 
Note: Based on the HS 2012 nomenclature. 
Source: WTO estimates based on data provided by th e Mexican authorities and UNSD, Comtrade database. 
 WT/REG349/1 
 
- 102 - 
 
  14. Table A1.12 below shows the market access conditions for Mexico's top 25 export products in 
Guatemala. In 2010-2012 Mexico's exports of these top 25 products accounted for 48.9% of its total 
exports and covered 79 tariff lines, of which 61, representing 39.3% of total exports, were already duty-free under the MFN regime. Until 2013, under th e former Mexico-Northern Triangle Agreement, 
another 33 tariff lines had become duty-free. No further liberalization of lines remaining dutiable is 
envisaged by the Agreement and at the end of the implementation period, 5 tariff lines, petroleum 
oil, other than waste oil, light oils and preparatio ns, with average MFN duties of 2.7% in 2013, will 
still be subject to duties. 
Table A1.12 Guatemala: Market access o pportunities for Mexico's top 25 exports 
Mexico's top export products in 2010-2012 Access conditions to Guatemala's import markets 
HS number and description of the 
product Share in 
global 
exports (%) MFN 2013 Duty-free 
under the 
Mexico-
Northern 
Triangle 
(2013) Remain 
dutiable Average 
MFN 
applied 
rate 
(%) Duty 
Free Dutiable 
Lines 
270900 Petroleum oils and oils 
obtained from bituminous minerals, crude. 13.0 0.0 2    
870323 -- of a cylinder capacity 
exceeding 1,500 cc but not 
exceeding 3,000 cc 5.5 0.0 10    
852872 -- other, colour 4.9 7.5 1 1 1  
870431 -- g.v.w. not exceeding 5 
tonnes 2.2 0.0 8    
847149 -- other, presented in the 
form of systems 2.1 0.0 1    
851712 -- telephones for cellular 
networks or for other 
wireless networks 2.1 0.0 1    
710812 -- other unwrought forms 1.9 5.0  1 1  
851770 - parts 1.5 0.0 1    
870120 - road tractors for semi-
trailers 1.4 0.0 1    
854430 - ignition wiring sets and 
other wiring sets of a kind 
used in vehicles, aircraft or 
ships 1.4 5.0  1 1  
851762 -- machines for the 
reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus 1.2 0.0 1    
847150 - 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 1.1 0.0 1    
710691 -- unwrought 1.1 10.0  1 1  
870829 -- other 1.0 10.0  2 2  
940190 - parts 1.0 5.0  1 1  
870332 -- of a cylinder capacity 
exceeding 1,500 cc but not 
exceeding 2,500 cc 1.0 0.0 10    
870899 -- other 0.9 10.0  1 1  
870324 -- of a cylinder capacity 
exceeding 3,000 cc 0.8 0.0 5    
853710 - for a voltage not 
exceeding 1,000 v 0.7 10.0  1 1  WT/REG349/1 
 
- 103 - 
 
  Mexico's top export products in 2010-2012 Access conditions to Guatemala's import markets 
HS number and description of the 
product Share in 
global 
exports (%) MFN 2013 Duty-free 
under the 
Mexico-
Northern 
Triangle 
(2013) Remain 
dutiable Average 
MFN 
applied 
rate 
(%) Duty 
Free Dutiable 
Lines 
870850 - drive-axles with 
differential, whether or not 
provided with other 
transmission components, 
and non-driving axles; parts 
thereof 0.7 10.0  3 3  
841810 - combined refrigerator-
freezers, fitted with separate external doors 0.7 15.0  1 1  
840991 -- suitable for use solely or 
principally with spark-
ignition internal combustion 
piston engines 0.7 0.0 1    
271019 -- Petroleum oil, other than 
waste oil, light oils and preparations 0.6 2.7 8 5  5 
870422 -- g.v.w. exceeding 5 
tonnes but not exceeding 20 
tonnes 0.6 0.0 2    
870421 -- g.v.w. not exceeding 5 
tonnes 0.6 0.0 8    
Total of above 48.9  61 18 13 5 
Note: Based on the HS 2012 nomenclature. 
Source: WTO estimates based on data provided by the Guatemalan authorities and UNSD, Comtrade database. 
15. Table A1.13 below shows the market access conditions for Honduras' top 25 export products 
in Mexico. In 2010-2012 Honduras exports of these top 25 products accounted for 72.7% of its total 
exports and covered 77 tariff lines, of which 12, representing 14.1% of total exports, were already duty-free under the MFN regime. By 2013 under the former Mexico-Northern Triangle Agreement, 
another 23 tariff lines had become duty-free. No further liberalization of the remaining dutiable lines 
is envisaged by the Agreement and at the end of  the implementation period of the Agreement 7 
tariff lines will still be subject to duties: coffee, not decaffeinated; bananas, including plantains, fresh or dried; cigars, cheroots and cigarillos, containing tobacco; and cane sugar. Four of these 
lines faced average applied MFN rates of 20% and 45% in 2013, while three lines (cane sugar) were 
subject to specific duties. 
Table A1.13 Mexico: Market access opport unities for Honduras' top 25 exports 
Honduras' top export products in 2010-2012 Access conditions to Mexico's import markets 
HS number and description of the 
product Share in 
global 
exports 
(%) MFN 2013 
Duty-free under 
the Mexico-
Northern 
Triangle2013 
Remain dutiable 
under the Mexico-
Central America  Average MFN 
applied rate (%) 
Duty Free 
Dutiable Lines 
090111 -- not decaffeinated 28.8 20.0  2  2 
854430 - ignition wiring sets and 
other wiring sets of a kind 
used in vehicles, aircraft or 
ships 6.9 3.3 1 2 2  
271112 -- propane 5.0 0.0 1    
080300 Bananas, including plantains, 
fresh or dried. 4.0 20.0  1  1 
151110 - crude oil 3.3 3.0  1 1  WT/REG349/1 
 
- 104 - 
 
  Honduras' top export products in 2010-2012 Access conditions to Mexico's import markets 
HS number and description of the 
product Share in 
global 
exports 
(%) MFN 2013 
Duty-free under 
the Mexico-
Northern 
Triangle2013 
Remain dutiable 
under the Mexico-
Central America  Average MFN 
applied rate (%) 
Duty Free 
Dutiable Lines 
030613 -- shrimps and prawns 2.7 20.0  1 1  
710812 -- other unwrought forms 2.5 0.0 1    
711291 -- of gold, including metal clad 
with gold but excluding 
sweepings containing other 
precious metals 2.3 0.0 2    
151190 - other 2.0 5.0  1 1  
030611 -- rock lobster and other sea 
crawfish (palinurus spp., 
panulirus spp., jasus spp.) 1.6 20.0  1 1  
340119 -- other 1.5 15.0  1 1  
240210 - cigars, cheroots and 
cigarillos, containing tobacco 1.3 45.0  1  1 
080719 -- other 1.3 20.0  2 2  
481910 - cartons, boxes and cases, of 
corrugated paper or 
paperboard 1.1 0.0 1    
260800 Zinc ores and concentrates. 1.0 0.0 1    
170111 
-- cane sugar 0.9 0.338 Dls 
EUA por Kg  3  3 
282110 - iron oxides and hydroxides 0.8 0.0 3    
870899 -- other 0.8 1.3 11 4 4  
080430 - pineapples 0.8 20.0  1 1  
030429 -- other 0.8 20.0  3 3  
240220 - cigarettes containing 
tobacco 0.8 67.0  1 1  
760200 Aluminium waste and scrap. 0.7 0.0 2    
261610 - silver ores and concentrates 0.7 0.0 1    
490700 Unused postage, revenue or 
similar stamps of current or 
new issue in the country in 
which they have, or will have, 
a recognised face value; 
stamp-impressed paper; 
banknotes; cheque forms; 
stock, share or bond 
certificates and similar 
documents of title. 0.7 5.0 2 1 1  
870829 -- other 0.7 0.8 21 4 4  
Total of above 72.7  47 30 23 7 
Note: Based on the HS 2007 nomenclature. 
Source: WTO estimates based on data provided by th e Mexican authorities and UNSD, Comtrade database. 
16. Table A1.14 below shows the market access conditions for Mexico's top 25 export products in 
Honduras. In 2010-2012 Mexico's exports of these top 25 products accounted for 48.9% of its total exports and covered 79 tariff lines, of which 9, re presenting 23.1% of total exports, were already 
duty-free under the MFN regime. Until 2013, under th e former Mexico-Northern Triangle Agreement, 
another 15 tariff lines had become duty-free. Under the Agreement, out of the 46 tariff lines that 
continued to be subject to duties, 41 will be come duty-free in 2022. At the end of the 
implementation period 5 tariff lines which in 2013 faced average applied MFN rates of 3.1% 
(petroleum oil, other than waste oil, light oils and preparations), will still be subject to duties. WT/REG349/1 
 
- 105 - 
 
  Table A1.14 Honduras: Market access oppo rtunities for Mexico's top 25 exports  
Mexico's top export products in 2010-2012 Access Conditions to Honduras' import 
markets 
MFN (2013)  Duty-free  
Under: 
Remain Dutiable HS number and description of the product Share in 
global 
exports 
(%) Averag
e MFN 
applied 
rate 
(%) No. of 
tariff lines 
Mexico-
Northern 
Triangle 
(2013) 
Mexico-Central 
America 
(2022) Duty-free 
Dutiable 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 13.0 0.0 2     
870323 -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc 5.5 15.0  10  10  
852872 -- other, colour 4.9 7.5 1 1 1   
870431 -- g.v.w. not exceeding 5 tonnes 2.2 7.5  8  8  
847149 -- other, presented in the form of 
systems 2.1 0.0 1     
851712 -- telephones for cellular networks or 
for other wireless networks 2.1 0.0 1     
710812 -- other unwrought forms 1.9 5.0  1 1   
851770 - parts 1.5 0.0 1     
870120 - road tractors for semi-trailers 1.4 0.0 1     
854430 - ignition wiring sets and other wiring 
sets of a kind used in vehicles, aircraft 
or ships 1.4 5.0  1 1   
851762 -- machines for the reception, 
conversion and transmission or regeneration of voic e, images or other 
data, including switching and routing apparatus 1.2 0.0 1     
847150 - 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 1.1 0.0 1     
710691 -- unwrought 1.1 10.0  1 1   
870829 -- other 1.0 5.0  2 2   
940190 - parts 1.0 5.0  1 1   
870332 -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 2,500 cc 1.0 5.0  10  10  
870899 -- other 0.9 5.0  1 1   
870324 -- of a cylinder capacity exceeding 
3,000 cc 0.8 15.0  5  5  
853710 - for a voltage not exceeding 1,000 v 0.7 10.0  1 1   
870850 - drive-axles with differential, whether 
or not provided with other 
transmission components, and non-
driving axles; parts thereof 0.7 5.0  3 3   
841810 - combined refrigerator-freezers, fitted 
with separate external doors 0.7 15.0  1 1   
840991 -- suitable for use solely or principally 
with spark-ignition internal combustion 
piston engines 0.7 0.0 1     
271019 -- other 0.6 3.1 8 5   5 
870422 -- g.v.w. exceeding 5 tonnes but not 
exceeding 20 tonnes 0.6 5.0  2 2   
870421 -- g.v.w. not exceeding 5 tonnes 0.6 6.3  8  8  
Total of above 48.9  18 61 15 41 5 
Note: Based on the HS 2012 nomenclature. 
Source: WTO estimates based on data from Honduras au thorities, WTO-IDB and UN SD, Comtrade databases. 
 WT/REG349/1 
 
- 106 - 
 
  17. Table A1.15 below shows the market access conditions for Nicaragua's top 25 export products 
in Mexico. In 2009-2011 Nicaragua's exports of these top 25 products accounted for 81.2% of its total exports and covered 54 tariff lines, of which 2, representing 16.4% of total exports, were already duty-free under the MFN regime. By 2012, under the former Mexico-Nicaragua Bilateral 
Agreement, another 38 tariff lines had become du ty-free. No further liberalization of the lines 
remaining dutiable is envisaged by the Agreement and at the end of the implementation period of 
the Agreement 9 tariff lines will still be subject to duties: coffee, not decaffeinated; cane sugar; cane 
or beet sugar and chemically pure sucrose, in solid form, not containing added flavouring or 
colouring matter; and bananas, including plantains, fresh or dried. 
Table A1.15 Mexico: Market access opport unities for Nicaragua's top 25 exports
 
Nicaragua's top export products in 2009-2011 Access conditions to Mexico's import markets 
HS number and description of the 
product 
Share in 
global 
exports (%) MFN 2012 
Duty-free 
under 
Mexico-
Nicaragua 
(2012) 
Remain 
dutiable 
under 
Mexico-
Central 
America Average 
MFN 
applied 
rate (%) 
Duty Free 
Dutiable 
Lines 
090111 -- not decaffeinated 18.2 20.0  2  2 
020230 - boneless 12.4 25.0  1 1  
710812 -- other unwrought forms 12.3 0.0 1    
020130 - boneless 4.5 20.0  1 1  
170111 -- cane sugar 4.4 0.0  3  3 
120220 - shelled, whether or not broken 4.1 0.0 1    
030613 -- shrimps and prawns 3.1 20.0  1 1  
071333 -- kidney beans, including white 
pea beans (phaseolus vulgaris) 2.7 93.8 1 3 3  
040690 - other cheese 2.3 68.6  7 7  
030611 -- rock lobster and other sea 
crawfish (palinurus spp., panulirus 
spp., jasus spp.) 2.2 20.0  1 1  
040221 -- not containing added sugar or 
other sweetening matter 2.1 36.5  2 2  
170199 Cane or beet sugar and chemically 
pure sucrose, in solid form, not 
containing added flavouring or 
colouring matter 1.6 0.36 
US$ por 
Kg  3  3 
210111 -- extracts, essences and 
concentrates 1.2 140.4  3 3  
040630 - processed cheese, not grated or 
powdered 1.2 125.0  2 2  
010290 - other 1.0 7.5 2 2 2  
170310 - cane molasses 1.0 10.0  2 2  
220840 - rum and other spirits obtained by 
distilling fermented sugar-cane products 1.0 20.0  2 2  
040120 - of a fat content, by weight, 
exceeding 1% but not exceeding 
6 % 0.9 10.0  2 2  
030269 -- other 0.8 16.7  3 3  
490700 Unused postage, revenue or similar 
stamps of current or new issue in 
the country in which they have, or 
will have, a recognised face value; 
stamp-impressed paper; 
banknotes; cheque forms; stock, 
share or bond certificates and 
similar documents of title. 0.8 5.0 2 1 1  
150810 - crude oil 0.8 10.0  1 1  
240210 - cigars, cheroots and cigarillos, 
containing tobacco 0.7 45.0  1 1  
080300 Bananas, including plantains, fresh 
or dried. 0.7 20.0  1  1 WT/REG349/1 
 
- 107 - 
 
  Nicaragua's top export products in 2009-2011 Access conditions to Mexico's import markets 
HS number and description of the 
product 
Share in 
global 
exports (%) MFN 2012 
Duty-free 
under 
Mexico-
Nicaragua 
(2012) 
Remain 
dutiable 
under 
Mexico-
Central 
America Average 
MFN 
applied 
rate (%) 
Duty Free 
Dutiable 
Lines 
040610 - fresh (unripened or uncured) 
cheese, including whey cheese, and 
curd 0.6 125.0  1 1  
190590 - other 0.6 10.0  2 2  
Total of above 81.2  7 47 38 9 
Note: Based on the HS 2007 nomenclature. 
Source:  WTO estimates based on data provided by the Mexican authorities and UNSD, Comtrade database. 
18. Table A1.16 below shows the market access conditions for Mexico's top 25 export products in 
Nicaragua. In 2009-2011 Mexico's exports of these top 25 products accounted for 49.5% of its total 
exports and covered 114 tariff lines, of which 10, representing 23.5% of total exports, were already 
duty-free under the MFN regime. By 2012, another 66 tariff lines had become duty-free under the former bilateral agreement between Mexico and Nicaragua. Upon entry into force of the Agreement, 
a further 30 tariff lines, all subject to an average MFN applied rate of 9% in 2013, (vehicles 
principally designed for the transport of persons of a cylinder capacity exceeding 1,500 cc but not 
exceeding 2,500 cc) became duty-free. 
Table A1.16 Nicaragua: Market  access opportunities under the agreement for Mexico's top 
25 exports to the world  
Mexico's top export products in 2009-2011 Access Conditions to Nicaragua's import 
markets 
MFN (2012)  Duty-free in 
2012 under 
the 
Agreements: HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines Duty-
free 
Dutiable 
Mexico-
Nicaragua  
Mexico-
Central 
America 
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 12.6 0.0 2    
852872 -- other, colour 5.8 15.0  2 2  
870323 -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc 5.5 8.0  20 20  
851712 -- telephones for cellular networks or 
for other wireless networks 3.0 0.0 1    
870431 -- g.v.w. not exceeding 5 tonnes 2.1 5.0  13 13  
710812 -- other unwrought forms 1.8 5.0  1 1  
847149 -- other, presented in the form of 
systems 1.7 0.0 1    
851770 - parts 1.4 0.0 1    
854430 - ignition wiring sets and other wiring 
sets of a kind used in vehicles, aircraft or ships 1.3 5.0  1 1  
870120 - road tractors for semi-trailers 1.3 0.0 1    
271019 -- other 1.2 4.0 8 7 7  
851762 -- machines for the reception, 
conversion and transmission or 
regeneration of voic e, images or other 
data, including switching and routing 
apparatus 1.1 0.0 1    
847150 - 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 1.1 0.0 1    WT/REG349/1 
 
- 108 - 
 
  Mexico's top export products in 2009-2011 Access Conditions to Nicaragua's import 
markets 
MFN (2012)  Duty-free in 
2012 under 
the 
Agreements: HS number and description of the product Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) No. of tariff 
lines Duty-
free 
Dutiable 
Mexico-
Nicaragua  
Mexico-
Central 
America 
870829 -- other 1.0 10.0  2 2  
870332 -- of a cylinder capacity exceeding 
1,500 cc but not exceeding 2,500 cc 1.0 9.0  30  30 
940190 - parts 1.0 5.0  1 1  
710691 -- unwrought 0.9 10.0  1 1  
870899 -- other 0.8 5.0  1 1  
841810 - combined refrigerator-freezers, fitted 
with separate external doors 0.7 15.0  1 1  
853710 - for a voltage not exceeding 1,000 v 0.7 10.0  1 1  
870324 -- of a cylinder capacity exceeding 
3,000 cc 0.7 8.0  10 10  
870850 - drive-axles with differential, whether 
or not provided with other 
transmission components, and non-
driving axles; parts thereof 0.7 5.0  3 3  
901890 - other instruments and appliances 0.7 0.0 1    
220300 Beer made from malt. 0.6 15.0  2 2  
840991 -- suitable for use solely or principally 
with spark-ignition internal combustion piston engines 0.6 0.0 1    
Total of above 49.5  18 96 66 30 
Note: Based on the HS 2012 nomenclature. 
Source: WTO estimates based on data from Nicaraguan authorities, WTO-IDB and UN SD, Comtrade databases. 
 WT/REG349/1 
 
- 109 - 
 
  ANNEX 2 
TARIFF RATE QUOTAS UNDER THE AGREEMENT 
Table A2.1 Mexico's TRQs for imports from Central America 
Partner Description of 
products (HS) Tariff 
Code 
 In-quota Tariff 
Quantity  
 In-quota 
Tariff rate Out-of-quota tariff 
rate 
(Average MFN)a 
Costa Rica Dairy produce 0401.10.01; 
0401.20.01; 
0401.30.01; 
0404.90.99 15 million litres Duty-free 10% 
10% 
10% 
20% 
 Waters, 
containing milk 2202.90.04 20% 
 Prepared foods 2106.90.99AA 22,000 MT Duty-free 15%+0.36 Dls per Kg 
of sugar 
 Flat rolled 
products of iron 
and steel* 72.10 72.12 2,500 MT Duty-free 3% 
for 7210.41.01 
El Salvador Iron and steel 7214.20.01; 
7216.21.01AA 20,000 MT 
4,000 MT 2.5% The lower of either the 
base rate or the MFN 
minus 40%, (the MFN 
in 2012 was duty-free) 
Guatemala Cheeseb 0406.10 
0406.90 20 MT with annual 
increase until 
year 10  
(580 MT) Duty-free 100% 
55% 
 Tuna 1604.14.01 
1604.14.02 
1604.14.03 1604.14.99 1604.19.01 1604.19.02 1604.19.99 500 MT  
 Duty-free 20%  
Honduras Cigars, cheroots 
and cigarillos 2402.10.01 1,250 pieces Duty-free 45% 
Nicaragua Milk in powder 
granules 0204.10.01 
0402.21.01 5,000 MT  
(until 30 June 
2012) Duty-free 8.5% 
(duty free as of 12 July 
2012) 
a Reflects the MFN rate of the year of  entry into force of the Agreement.  
b In year ten, Mexico shall review the quantities for subsequent years, which shall not be less than that 
in year ten. 
* The in-quota rule of origin is different. 
Source: Prepared by the WTO Secretariat, based on th e Annex 3.4 of the Agreemen t and the tariff reduction 
schedule. 
Table A2.2 Mexico's TRQs for textiles with US materials imported from Central America 
Description of products (HS) Tariff Code 
 Categories Annual quota quantity (m2)a 
Articles of apparel or clothing, not knitted 
or crocheted HS Chapter 62  70 million 
With maximum sub-limits 
(i) Trousers or skirts 6203.41 
6203.43 6203.49 6204.51 6204.53 6204.59 6206.61 
6206.63 
6206.64 6206.90 342, 347, 348, 
642, 647, 648 31.5 million 
(ii) Cotton blue denim trousers and 
cotton blue denim skirts 6203.42 
6204.62  14 million 
  6204.52 WT/REG349/1 
 
- 110 - 
 
  Description of products (HS) Tariff Code 
 Categories Annual quota quantity (m2)a 
Articles of apparel or clothing, not knitted 
or crocheted HS Chapter 62  70 million 
(iii) Woollen clothing apparel 6204.31 
6204.33 6204.39 6204.39 433, 435 1 million 
62.03 
62.04 442, 443, 444, 
447, 448 
a the maximum annual quota may be increased to 200 million m2 and the sub-limits shall be increased 
so they represent the same percentage as th at of the preceding year's maximum quota.  
Source: WTO Secretariat, based on Annex 3.16 of the Agreement. 
Table A2.3 TRQs on imports from Mexico by El Salvador, Guatemala and Honduras 
Reporter Description of 
products (HS) Tariff 
Code In-quota Tariff 
Quantity  In-quota 
Tariff rate Out-of-quota tariff 
rate  
(Average MFN)a 
Guatemala Cheeseb 0406.10 
0406.90 20 MT with 
annual increase 
until year 10  
(580 MT) Duty-free 15% 
 
Tuna 1604.14.10AA 
1604.14.90AA 
1604.19.00AA 500 MT Duty-free 15% 
 
Mexican yellow 
maize 1005.90.20 150,000 MT Duty-free 
 15% 
 
El Salvador 120,000 MT 15% 
Honduras Cigars, cheroots 
and cigarillos 2402.10.00 1,250 pieces Duty-free 15% 
a the most recent average MFN rate available,  2012 for El Salvador and 2013 for Guatemala and 
Honduras. 
b In year ten, Guatemala shall review the quantities for subsequent years, which shall not be less than 
that in year ten. 
Source: WTO Secretariat, based on Annex 3.4 of the Agreement and the tariff reduction schedule. WT/REG349/1 
 
- 111 - 
 
  ANNEX 3 
Table A3.1 Imports under the SAS from Mexico by Guatemala  
HS Code  Description  Weighted average 
share of imports  MFN 
2013 Safe- 
guard 
duty 
Up to 31 December 2013    
0703.10.11  Yellow (Onions and shallots) 30% 15% 15% 
0703.10.12  White (Onions and shallots) 70% 
0703.20.00  Garlic 30% 
0709.60.10  Peppers (chilies) sweet  50% 
0804.50.10  Mangoes  65% 
1517.10.00  Margarine, excluding liquid margarine  30% 
1704.10.00  -Chewing gum, whether or not sugar-coated 70% 
1704.90.00  -Other (Sugar confectionery (including white 
chocolate), not containing cocoa) 30% 
2005.59.00  Other beans  30% 
2009.19.90  --Other (Orange juice) 65% 
2009.70.90  --Other (Apple juice) 65% 
2009.80.90  --Other (Juice of any other single fruit or 
vegetable) 50% 
2103.20.00  Tomato ketchup 30% 
2208.40.10  --Rum 65% 40% 20% 
2208.40.90  --Other spirits obtained by distilling fermented 
sugar-cane products 50% 30% 20% 
Up to 31 December 2014    
1101.11.00  Wheat or meslin (meslin) 40% 10% 15% 
1601.00.90  Mixture  (Sausages and similar products, of meat, 
meat offal or blood; food preparations based on these products)  30% 15% 
1602.41.00  --Hams and cuts thereof 30% 
1602.42.00  --Shoulders and cuts thereof 65% 
1905.90.00  -Other (Bread, pastry, cakes, biscuits and other 
bakers' wares, whether or not containing cocoa; 
communion wafers, empty cachets of a kind 
suitable for pharmaceutical use, sealing wafers, 
rice paper and similar products) 65% 
2102.10.90  --Other (Active yeasts) 30% 10% 10% 
2104.10.00  -Soups and broths and preparations therefor 30% 15% 15% 
Goods that are not time bound     
0704.10.00  Cauliflower and broccoli ("broccoli")  30% 15% 15% 
2005.20.00  Potatoes  65% 
2203.00.00  Beer made from malt  65% 40% 20% 
Source: Annex 3.22 of the Agreement and the WTO Secretariat. 
Table A3.2 Imports under the SAS from Mexico by Honduras 
HS Code  Description  Weighted 
average 
share of 
imports  MFN 
2013 Safe-
guard 
duty 
Up to 31 December 2014    
0701.90.00  - Other (Potatoes, fresh or chilled) 30% 15% 15% 
0703.10.11  Yellow (Onions and shallots) 
0703.10.12  White (Onions and shallots) 
0703.10.13  Red (Onions and shallots) 
0703.10.19  Other (Onions and shallots) 
0804.40.00  Avocados  
1103.11.00  Of wheat 5% 
1704.10.00  Chewing gum, whether or not sugar-coated  15% 
1704.90.00  Other (Sugar confectionery, including white chocolate, not 
containing cocoa). WT/REG349/1 
 
- 112 - 
 
  HS Code  Description  Weighted 
average 
share of 
imports  MFN 
2013 Safe-
guard 
duty 
2009.19.90  Other (Fruit juices, including grape must and vegetable 
juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter) 20% 
2009.40.00  Pineapple juice 15% 
2009.50.00  Tomato juice 
2009.90.00  Mixtures of juices 
2103.20.00  Tomato ketchup 
Up to 31 December 2015   
1601.00.20  Of poultry of heading No. 0105 (Sausages and similar 
products, of meat, meat offal or blood; food preparations 
based on these products) 15% 15% 
1601.00.30  Of pig (Sausages and similar products, of meat, meat 
offal or blood; food preparations based on these products) 
1601.00.90  Mixtures (Sausages and similar products, of meat, meat 
offal or blood; food preparations based on these products) 
1602.41.00  Hams and cuts thereof 
Goods that are not time bound   
1902.19.00  Other, uncooked pasta, not stuffed or otherwise prepared 15% 15% 
1902.30.00  Other pasta  
1905.30.00  Sweet biscuits; waffles and wafers 
2203.00.00  Beer made from malt 20% 
Source: Annex 3.22 of the Agreement and the WTO Secretariat. 
Table A3.3 Goods subject to the SAS imported by Mexico  Partner HS Code  Description  Weighted 
average 
share of 
imports  MFN 2013  Safe- 
guard 
duty from Guatemala 1704.10.01  Chewing gum, whether or not sugar-coated (Sugar 
confectionery ,including white chocolate, not 
containing cocoa) 5% 20%+0.36 
Dls per Kg 
of sugar 5% 
1704.90.99  Other (Sugar confectionery ,including white 
chocolate, not containing cocoa) 3% 
1905.90.99  Other (Bread, pastry, cakes, biscuits and other 
bakers' wares, whether or not containing cocoa; 
communion wafers, empty cachets of a kind 
suitable for pharmaceutical use, sealing wafers, rice 
paper and similar products) 10% 4% 
2104.10.01  -Soups and broths and preparations therefor 5% 
2207.10.01  Ethyl alcohol of an alcoholic strength by volume 
exceeding 80% vol.  10%+0.36 
Dls per Kg 
of sugar 1.5% 
2401.20.01  Light tobacco, Burley or Virginia  type 45% 22.5%  from Honduras 0201.30.01  Boneless (Meat of bovine animals, fresh or chilled) 3% 20% 20% 
0202.30.01  Boneless (Meat of bovine animals, frozen) 25% 25% 
0306.13.01  Shrimps and prawns  20% 20% 
0701.90.99  Other (Potatoes, fresh or chilled) 175% 63% 
0804.30.01  Pineapple  20% 20% 
0807.19.01  Chinese melon ("cantaloupe")  10% 
0807.19.99  Other (Melons ,including watermelons) 
0807.20.01  Papayas  20% 
2009.11.01  -- Frozen (Orange juice) 5% 
2103.20.99  -- Other (Tomato ketchup and other tomato 
sauces) 
2401.20.01  Light tobacco, Burley or Virginia  type 45% 22.5% 
Source: Annex 3.22 of the Agreement and the WTO Secretariat. 
__________