RESTRICTED  
  
WT/TPR/S/352  
15 February  2017 
(17-0903) Page: 1/171 
Trade Policy Review Body   
 
  TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
MEXICO 
This report, prepared for the sixth Trade Policy Review of Mexic o, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the T rade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Mexico on its trade policies 
and practices.  
 
Any technical questions arising from this report may be addre ssed to Mr Ange lo Silvy 
(022 739 5249), Ms Eugenia Lizano (022  739 6578) , Mr Ferran Mercadé (022 739 6026) and 
Ms Stéphanie Dorange (022  739 5497) . 
 
Document WT/TPR/G/35 2 contains the policy statement submitted by Mexico.  
 
 
Note: This report is subjec t to restricted circulation and press emb argo until the end of the 
first session of the meeting of the Trade Policy Review Body on Mex ico. This report was drafted 
in Spanish.  WT/TPR/S/35 2 • Mexico  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  8 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  14 
1.1   Macroeconomic trends ................................ ................................ ................................ .14 
1.1.1    Structure, growth and employment  ................................ ................................ ............ 14 
1.1.2    Fiscal policy  ................................ ................................ ................................ ............ 18 
1.1.3    Monetary and exchange rate policy  ................................ ................................ ............ 22 
1.1.4    Balance of payments  ................................ ................................ ................................ 24 
1.2   Trend of trade and investment flows  ................................ ................................ ............. 27 
1.2.1    Merchandise trade  ................................ ................................ ................................ ...27 
1.2.1.1    Composition of merchandise trade  ................................ ................................ .......... 27 
1.2.1.2    Direction of merchandise trade  ................................ ................................ ............... 29 
1.2.2    Trade in services  ................................ ................................ ................................ .....31 
1.2.3    Foreign direct investment  ................................ ................................ ......................... 31 
2   TRADE AND INVE STMENT REGIME  ................................ ................................ ............  33 
2.1   General legal framework  ................................ ................................ ............................. 33 
2.2   Trade policy objectives and formulation  ................................ ................................ ......... 34 
2.3   International trade relations  ................................ ................................ ........................ 36 
2.3.1    WTO ................................ ................................ ................................ ...................... 36 
2.3.2    Trade agreements  ................................ ................................ ................................ ....37 
2.3.3    Preferential trade arrangements  ................................ ................................ ................ 39 
2.4   Foreign investment regime  ................................ ................................ .......................... 40 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  44 
3.1   Measures directly affecting imports  ................................ ................................ ............... 44 
3.1.1    Registration, customs doc uments and procedures  ................................ ........................ 44 
3.1.2    Customs valuation  ................................ ................................ ................................ ...46 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 47 
3.1.4    Tariffs  ................................ ................................ ................................ .................... 48 
3.1.4.1    Tariff structure and levels  ................................ ................................ ...................... 48 
3.1.4.2    Tariff quotas  ................................ ................................ ................................ ......... 49 
3.1.4.3    Preferential tariffs  ................................ ................................ ................................ .50 
3.1.4.4    Tariff concessions  ................................ ................................ ................................ .51 
3.1.5    Other charges affecting imports  ................................ ................................ ................. 51 
3.1.6    Import prohibitions, restrictions and licensing  ................................ ............................. 52 
3.1.7    Contingency measures  ................................ ................................ ............................. 55 
3.1.7.1    Legal and institutional framework  ................................ ................................ ........... 55 
3.1.7.2    Anti-dumping measures  ................................ ................................ ......................... 56 
3.1.7.3    Countervailing measures  ................................ ................................ ........................ 61 
3.1.7.4    Safeguard measures  ................................ ................................ ............................. 62 
3.1.8    Technical regulations and standards  ................................ ................................ ........... 62 WT/TPR/S/35 2 • Mexico  
 
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  3.1.9    Labelling and marking  ................................ ................................ .............................. 66 
3.1.10    Sanitary and phytosanitary measures  ................................ ................................ .......67 
3.2   Measures directly affecting exports  ................................ ................................ ............... 71 
3.2.1    Registration and documentation  ................................ ................................ ................ 71 
3.2.2    Export taxes and duties  ................................ ................................ ............................ 72 
3.2.3    Export prohibitions, regulations and permits  ................................ ............................... 72 
3.2.4    Export support  ................................ ................................ ................................ ........ 74 
3.2.5    Export promotion  ................................ ................................ ................................ .....76 
3.2.6    Export financing, insurance and guarantees  ................................ ................................ 77 
3.3   Other measures affect ing production and trade  ................................ .............................. 78 
3.3.1    Incentives  ................................ ................................ ................................ ............... 78 
3.3.2    Competition policy and price controls  ................................ ................................ ......... 82 
3.3.2.1    Competition policy  ................................ ................................ ................................ 82 
3.3.2.1.1    Legal framework  ................................ ................................ ................................ 82 
3.3.2.1.2    Institutional fram ework  ................................ ................................ ....................... 83 
3.3.2.1.3    Investigations into monopolistic practices  ................................ .............................. 84 
3.3.2.1.4    Economic mergers  ................................ ................................ .............................. 85 
3.3.2.1.5    Activities of the competition authorities  ................................ ................................ .86 
3.3.2.2    Price controls ................................ ................................ ................................ ........ 87 
3.3.3    State -owned enterprises  ................................ ................................ ........................... 87 
3.3.4    Government procurement  ................................ ................................ ......................... 88 
3.3.5    Trade -related intellectual property rights (IPRs)  ................................ .......................... 91 
3.3.5.1    Industrial property rights  ................................ ................................ ....................... 91 
3.3.5.2    Copyright and related rights  ................................ ................................ ................... 94 
3.3.5.3    New plant varieties  ................................ ................................ ............................... 95 
3.3.5.4    Provisions for enforcement of intellectual property rights  ................................ ........... 95 
4   TRADE P OLICIES BY SECTOR  ................................ ................................ .....................  98 
4.1   Agriculture  ................................ ................................ ................................ ................. 98 
4.1.1    Main features  ................................ ................................ ................................ .......... 98 
4.1.2    Measures affecting imports and exports  ................................ ................................ .... 100 
4.1.3    Support measures  ................................ ................................ ................................ . 101 
4.1.3.1    PROAGRO  ................................ ................................ ................................ ..........  103 
4.1.3.2    PROGAN  ................................ ................................ ................................ ............  103 
4.1.3.3    Marketing incentives  ................................ ................................ ...........................  104 
4.1.3.4    Other incentives  ................................ ................................ ................................ . 105 
4.2   Energy  ................................ ................................ ................................ ....................  106 
4.2.1    Main features  ................................ ................................ ................................ ........  106 
4.2.2    General legal  and institutional framework  ................................ ................................ . 107 
4.2.3    Hydrocarbons  ................................ ................................ ................................ ........  112 
4.2.3.1    Regulatory framework  ................................ ................................ .........................  112 WT/TPR/S/35 2 • Mexico  
 
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  4.2.3.2    Market structure  ................................ ................................ ................................ . 119 
4.2.4    Electricity  ................................ ................................ ................................ .............  121 
4.2.4.1    Regulatory framework  ................................ ................................ .........................  121 
4.2.4.2    Market structure  ................................ ................................ ................................ . 125 
4.3   Manufacturing  ................................ ................................ ................................ ..........  126 
4.3.1    Main featu res ................................ ................................ ................................ ........  126 
4.3.2    IMMEX maquila and manufacturing sector  ................................ ................................ . 128 
4.4   Services  ................................ ................................ ................................ ..................  128 
4.4.1    Financial services  ................................ ................................ ................................ ... 128 
4.4.1.1    Financial reform  ................................ ................................ ................................ .. 130 
4.4.1.2    Banks  ................................ ................................ ................................ ................  133 
4.4.1.3    Insurance  ................................ ................................ ................................ ..........  136 
4.4.2    Telecommunications  ................................ ................................ ...............................  138 
4.4.3    Transport  ................................ ................................ ................................ ..............  144 
4.4.3.1    Institutional framework ................................ ................................ ........................  144 
4.4.3.2    Air transport and airports  ................................ ................................ .....................  144 
4.4.3.2.1   Air transport  ................................ ................................ ................................ .... 144 
4.4.3.2.2    Airports ................................ ................................ ................................ ...........  145 
4.4.3.3    Maritime transport and ports  ................................ ................................ ................  146 
4.4.3.3.1    Maritime transport  ................................ ................................ ...........................  146 
4.4.3.3.2    Ports ................................ ................................ ................................ ..............  148 
4.4.3.3.3    Shipbuilding  ................................ ................................ ................................ .... 148 
4.4.4    Tourism  ................................ ................................ ................................ ................  149 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 151  
 
CHARTS  
 
Chart 1.1 Current account and financial account of the balance of payments, 
2011-2016 (Q2) ................................ ................................ ................................ ................ 25 
Chart 1.2 Merchandise trade by main HS Section, 2012 and 2015  ................................ ............ 28 
Chart 1.3 Trade in goods for processing (maquila) by HS Section, 2012 and 2015  ..................... 29 
Chart 1.4 Merchandise trade by trading partner, 2012 and 2015  ................................ .............. 30 
Chart 3.1 Frequency distribution of tariff rates, 2012 and 2016  ................................ ............... 49 
Chart 3.2 Automatic and non -automatic import licensing, by HS 2016 sectio n ........................... 55 
Chart 3.3 Number of anti -dumping investigations and measures, by HS section  ......................... 59 
Chart 3.4 Anti -dumping investigations initia ted by exporter, 2007 -2016 (30  November)  ............. 60 
Chart 3.5 Definitive anti -dumping duties imposed by exporting country, 2007 -2016 
(30 November)  ................................ ................................ ................................ .................. 61 
Chart 3.6 Procedure for the preparation of a NOM  ................................ ................................ ..63 
Chart 3.7 Non -automatic export licensing by HS 2016 section  ................................ ................. 73 
Chart 3.8 Mexico's imports and exports by type of regime, 2012 -2015 ................................ .....75 WT/TPR/S/35 2 • Mexico  
 
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  Chart 3.9 Inputs covered by the various PROSEC programmes, 2016 (October)  ......................... 79 
Chart 3.10 Patents and utility models by type of technology, 2012 -2016 (June)  ........................ 94 
Chart 4.1 Functioning of the Mexican Petroleum Fund for Stabilization and Development  ..........  117 
Chart 4.2 Energy transactions on the wholesale electricity market  ................................ .........  123 
Chart 4.3 Average price of electricity, 2012 -2016 ................................ ................................  124 
Chart 4.4 Credit granted to businesses, 2012 -2016 ................................ ..............................  133 
Chart 4.5 Telephony market, 2015  ................................ ................................ .....................  143 
 
TABLES  
 
Table 1.1 Basic economic indicators, 2011 -2016 (first half)  ................................ ..................... 14 
Table 1.2 Structure of GDP by expenditure, 2011 -2016 (Q1 and Q2)  ................................ ........ 16 
Table 1.3 Balance of the federal non -financial public sector (NFPS), 2011 -2016 (Q2)  ................. 19 
Table 1.4 Main monetary indicators, 2011 -2016 Q3 ................................ ................................ 23 
Table 1.5 Balance of payments, 2011 -2016 (Q2)  ................................ ................................ ...25 
Table 1.6 Trade in services, 2011 -2016 (Q2)  ................................ ................................ ......... 31 
Table 1.7 Foreign direct investment by activity, 2011 -2016 (Q3)  ................................ ............. 32 
Table 1.8 Foreign direct investment by country of origin, 2011 -2016 (Q3)  ................................ 32 
Table 2.1 Institutions involved in trade policy  ................................ ................................ ........ 35 
Table 2.2 Trade agreements signed by Mexico (in force), 2012 -2016 ................................ ........ 37 
Table 2.3 Economic activities and companies subject to specific regulation, 2016  ....................... 42 
Table 3.1 Customs processing fee (DTA) rates, 2016a ................................ ............................. 45 
Table 3.2 Specific requirements for the Marketing and Importing Company and "Authorized 
Economic Operator" categories  ................................ ................................ ............................ 46 
Table 3.3 Rule s of origin under the regional trade agreements that have entered into force 
since 2012  ................................ ................................ ................................ ........................ 47 
Table 3.4. Structure of MFN tariffs, 2012 and 2016  ................................ ................................ 48 
Table 3.5 Other import charges, 2016  ................................ ................................ .................. 51 
Table 3.6 Ministries issuing import permits, 2016  ................................ ................................ ...54 
Table 3.7 Number o f investigations initiated and contingency measures imposed by type of 
measure, 2012 -2016 (30  November) ................................ ................................ .................... 55 
Table 3.8 Definitive anti -dumping measures in force as at 30  November  2016 ........................... 56 
Table 3.9 Definitive countervailing measures in force at 30  November  2016 .............................. 61 
Table 3.10 EMA mutual recognition agreements  ................................ ................................ .....65 
Table 3.11 Products subject to specific labelling or packaging requirements, 2016  ..................... 66 
Table 3.12 Principal legal instruments governing the sanitary and phytosanitary system, 
2016  ................................ ................................ ................................ ............................... 67 
Table 3.13 Bodies responsible for the sanitary system, 2016  ................................ ................... 67 
Table 3.14 Import cer tificates, 2016  ................................ ................................ ..................... 70 
Table 3.15 IMMEX options  ................................ ................................ ................................ ...75 
Table 3.16 Financial support given to the exporting sector by ProMexico  ................................ ...76 
Table 3.17 Financial products offered by Bancomext  ................................ ............................... 77 WT/TPR/S/35 2 • Mexico  
 
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  Table 3.18 Credit granted by Bancomext to the export sector, 2012 -2016 ................................ 78 
Table 3.19 Some tax incentives, 2016  ................................ ................................ .................. 80 
Table 3.20 Some support programmes, 2012 -2016 ................................ ................................ 81 
Table 3.21 Competition cases examined by the COFECE, 2012 -2016 (Q2)  ................................ .86 
Table 3.22 Amendments to the LAASSP and the LOPSRM introduced between 2012 and 
2016  ................................ ................................ ................................ ............................... 89 
Table 3.23 Amount and number of contracts by type of bidding procedure registered by 
CompraNet, 2011 -2015 ................................ ................................ ................................ ......91 
Table 3.24 Industrial property in dicators, 2012 -2016 ................................ ............................. 93 
Table 4.1 Main indicators for the agricultural sector, 2012 -2016 ................................ .............. 98 
Table 4.2 SAGARPA incentive programme s, 2012 -2016 ................................ ........................  101 
Table 4.3 PROAGRO, general criteria, 2016  ................................ ................................ .........  103 
Table 4.4 PROGAN – Maximum amounts of assistance, 2016  ................................ .................  104 
Table 4.5 National Energy Balance: Economic and Energy Indicators, 2012 -2015 .....................  107 
Table 4.6 Principal functions of the energy sector in stitutions  ................................ ................  108 
Table 4.7 Changes in the legal framework of the energy sector introduced as a result of 
the constitutional reform of 2013  ................................ ................................ .......................  110 
Table 4.8 Authorizations to operate in the initial phases of the hydrocarbon production 
process  ................................ ................................ ................................ ...........................  113 
Table 4.9 Local content in PEMEX allocations in Rounds 1 and 2 contracts  ...............................  115 
Table 4.10 Permits for operating in the middle and subsequent phases of the hydrocarbons 
production process  ................................ ................................ ................................ ...........  117 
Table 4.11 Price c ontrol in the hydrocarbons sector  ................................ ..............................  119 
Table 4.12 Indicators for the hydrocarbons and derivatives industry, 2012 -2016 .....................  120 
Table 4 .13 Tariff regulation in the electricity sector in 2016  ................................ ...................  123 
Table 4.14 Value of the products produced by the manufacturing industry, by subsector of 
economic activity  ................................ ................................ ................................ .............  126 
Table 4.15 Structural indicators of the manufacturing companies under the IMMEX regime, 
2011-2016 ................................ ................................ ................................ ......................  128 
Table 4.16 Financial system indicators, 2012 -2016 ................................ ..............................  129 
Table 4.17 The pillars of the financial reform of 2014  ................................ ...........................  131 
Table 4.18 Commercial banking activity indicators, 2012 -2016 ................................ ..............  135 
Table 4.19 Commercial banking financial indicators, 2012 -2016................................ .............  135 
Table 4.20 Telecommunications services indicators, 2012 -2016 (Q2)  ................................ ..... 143 
Table 4.21 International tourism indicators, 2012 -2016 (Q3) ................................ .................  149 
 
BOXES  
 
Box 1.1 Key measures o f the 2014 Tax Reform  ................................ ................................ ......21 
Box 2.1 Legislative procedures  ................................ ................................ ............................ 33 
Box 4.1 Objectives of energy policy  ................................ ................................ ....................  109 
Box 4.2 Procurement procedures for State -owned production enterprises  ...............................  112 
Box 4.3 Round Zero  ................................ ................................ ................................ .........  113 WT/TPR/S/35 2 • Mexico  
 
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  Box 4.4 Some measures to encourage the participation of domestic suppliers in the 
hydrocarbons sector  ................................ ................................ ................................ .........  116 
Box 4.5 Niche banking  ................................ ................................ ................................ ...... 134 
 
APPENDIX TABLES  
 
Table A1. 1 Total merchandise exports by HS section, 2012 -2015 ................................ ..........  151 
Table A1. 2 IMMEX merchandise exports by HS section, 2012 -2015 ................................ ....... 152 
Table A1. 3  Total merchandise imports by HS section, 2012 -2015 ................................ ..........  153 
Table A1. 4 IMMEX merchandise imports by HS section, 2012 -2015 ................................ ....... 154 
Table A1. 5 Total merchandise exports by trading partner, 2012 -2015 ................................ ... 155 
Table A1. 6 Total merchandise imports by trading part ner, 2012 -2015 ................................ ... 156 
 
 
Table A2. 1 Notifications to the WTO, 1  January  2012 to 30  September  2016 ..........................  157 
 
 
Table A3. 1 Summary of MFN tariffs, 2016  ................................ ................................ ..........  160 
Table A3. 2 Multilateral tariff quotas and import volume, 2016  ................................ ..............  162 
Table A3. 3 Unilateral tariff quotas applied by Mexico, 2016  ................................ ..................  164 
Table A3. 4 Summary of preferential tariffs, 2016  ................................ ................................  166 
Table A3. 5 General provisions on intellectual property rights  ................................ ................  167 
 
 
Table A4. 1 Rounds of bidding for hydrocarbon exploration and extraction contracts  ................  169 
Table A4. 2 Main provisions of bilateral air transport agreements  ................................ ...........  170 
 
 WT/TPR/S/35 2 • Mexico  
 
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  SUMMARY  
1. Mexico's economic growth accelerated over the period 2012 -2016: GDP grew at an a nnual 
average rate of 2.5%, higher than the 1.4% recorded over the period 2007 -2011, while per capita 
GDP rose to approximately US$10,000. Economic growth has been driven both by stronger 
domestic demand and increased exports of manufactures to the United States. Inflation remained 
under control, within a range of 2% to 4% annually, corresponding to the fluctuation band 
determined by the Bank of Mexico.  
2. In 2013, Mexico introduced an ambitious programme of reform in 11 different sectors, 
including: competiti on policy, tax policy, energy, financial services and telecommunications. The 
implementation of some of these reforms (energy, competition, telecommunications) called for 
amendment of the Constitution. The tax reform programme provided for a review of taxa tion in 
order to improve tax collection. The measures adopted included an expansion of the base for 
calculating income tax, fewer exemptions from payment of valued added tax (VAT), revised 
taxation for the mining sector and the introduction of "green" taxe s, leading to growth in tax 
revenue, from 9.7% of GDP in 2013 to 13.1% in 2015, while government finances became 
significantly less dependent on oil revenue. Despite these efforts, however, the public sector deficit 
rose from 2.3% of GDP in 2014 to 3.2% in  2015 and is forecast to be 3.5% in 2016. The efforts at 
reform have, nonetheless, managed to install a general climate of macroeconomic stability, 
although Mexico is still facing major challenges, particularly as regards the wide disparity in 
income, inse curity and shortcomings in governance, as well as high dependence on a single 
market.  
3. Mexico recorded a moderate but growing current account deficit over the review period, 
amounting to 2.9% of GDP in 2015 and mainly caused by the deterioration in the oil balance. The 
trade deficit in goods is fairly modest (1.3% of GDP), but is worsening because of deficits in the 
services and income balances, the latter notwithstanding remittances from workers abroad, which 
amounted to US$25,200  million in 2015.  
4. Mexico's export markets remain highly concentrated; exports to the United States accounted 
for 81.2% of the total in 2015, four percentage points more than in 2012, while imports from the 
United States in 2015 accounted for 47.4% of the total, compared to 50.1% in 2012. The growth 
of merchandise trade slowed during the review period. Between 2012 and 2015, exports grew by 
just 2.7% in US dollar terms, reflecting the drop in oil exports in particular, while imports 
expanded by just 6.6%. Mexico's exports are dominate d by manufactures, which represented 85% 
of the total in 2015, while agricultural products accounted for less than 8%, and products of the oil 
and extractive industries 7.2%, compared to 15.5% in 2012. This change mainly reflects the lower 
value of petrole um exports, owing to the fall in oil prices. The principal manufactures exported are 
still electrical machinery and appliances, and transport equipment, which jointly represented 
57.6% of total exports in 2015.  
5. Mexico receives a large amount of foreign dir ect investment (FDI). In 2015, FDI inflows 
amounted to US$32,864  million, while for the first nine months of 2016 they totalled 
US$19,773  million. The main FDI -recipient sectors in 2011 -2015 were the manufacturing 
industries, which absorbed an average of 5 4.4% of all FDI flows, followed by mining (8.5%) and 
commerce (7.7%). FDI from the United States represented over 50% of the total in 2015, followed 
by flows from various European Union countries.  
6. The foreign trade objectives are set out in the National De velopment Plan for 2013 -2018. As 
pertains to international trade, the aim is to reaffirm Mexico's commitment to free trade, the 
mobility of capital and integrated production, for which two strategies have been formulated: 
furthering and deepening the polic y of trade liberalization and promoting Mexico's integration in 
the region by establishing strategic economic partnerships and deepening existing ones. Emphasis 
is also placed on the importance of strengthening Mexico's presence in regional and multilatera l 
forums and bodies, including the WTO. These goals and strategies are developed in the sectoral 
programme of the Ministry of the Economy for 2013 -2018 as the Ministry is responsible for 
formulating and implementing the measures needed to meet the trade -related aims of the National 
Development Plan. Following the structural reforms introduced in 2013, Mexico set up new 
institutions for the Plan's implementation.  WT/TPR/S/35 2 • Mexico  
 
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  7. Mexico participates actively in the multilateral trading system, both in the regular work of 
the WTO and in the Doha Development Agenda negotiations, and in July  2016 ratified the 
Agreement on Trade Facilitation. As regards participation in the WTO plurilateral agreements, 
Mexico is not a party to the Agreement on Trade in Civil Aircraft or the Agree ment on Government 
Procurement, nor does it have observer status in the committees that administer those 
Agreements. Mexico is not party to the Information Technology Agreement (ITA) either. In 
August  2015, Mexico notified the Council for Trade in Services  of the granting of preferential 
treatment for services and service suppliers of least developed countries in accordance with the 
services waiver adopted by the Eighth WTO Ministerial Conference. Mexico submitted numerous 
notifications to the WTO during th e review period, not only those required on a regular basis 
(agriculture, anti -dumping, subsidies) but also ad hoc  notifications (technical regulations, sanitary 
and phytosanitary measures, regional agreements, rules of origin, etc.). Mexico has not been a  
defendant in any dispute since the previous review, but has been a complainant in two disputes 
and a third party in 11.  
8. Mexico has signed a large number of preferential agreements, which play an increasingly 
important role in its trade policy. In addition  to the NAFTA, the CAFTA -DR and the Association 
Agreement with the European Union, Mexico has also signed free trade agreements with Chile, 
Colombia, EFTA, Israel, Japan, Panama, Peru and Uruguay. It also belongs to the Pacific Alliance 
with Chile, Colombi a and Peru.  
9. In order to increase investment flows and boost the country's competitiveness, Mexico 
adopted a series of reforms to the FDI regime during the review period, mainly affecting 
telecommunications and broadcasting, as well as the financial and ene rgy sectors. Both FDI 
registration formalities and statistical reporting requirements were simplified and permission is not 
required to invest. FDI in unrestricted fields receives national treatment, subject to the permanent 
residency requirement. There ar e three types of FDI restriction: activities reserved exclusively for 
the State, activities reserved exclusively for Mexicans and activities subject to specific regulation, 
in other words, to a maximum FDI percentage. Following the reforms effected during the period 
under review, the activities reserved exclusively to the State are currently the following inter alia : 
exploration for and extraction of hydrocarbons; electricity transmission and distribution; 
generation of nuclear energy; radioactive minerals;  telegraph and radio telegraph services; postal 
services; and control, supervision and surveillance o f ports, airports and heliports.  
10. During the period under review, Mexico continued the reform efforts of previous years to 
simplify customs procedures and p romote trade. The key reforms were: establishment of the 
Mexican Digital Window for Foreign Trade (Digital Window) and abolition of the requirement to use 
the services of a customs broker. The use of new technologies for inspecting goods has been 
boosted a nd it is now possible to rectify the import declaration at any stage of customs clearance. 
In order to avoid undervaluation as well as tax evasion, Mexico still uses estimated prices as a 
reference for the customs valuation of certain goods and these are c urrently used for imports of 
used vehicles, textiles and clothing, and footwear, regardless of the origin of the imports. Mexico 
uses preferential and non -preferential rules of origin, with non -preferential rules being used to 
determine the origin of impor ts subject to anti -dumping or countervailing duties in order to 
prevent circumvention by means of reshipment of goods through third countries.  
11. Mexico substantially and unilaterally reduced applied tariffs during the review period; the 
average MFN tariff fe ll from 6.2% in 2012 to 5.5% in 2016. This reduction is principally due to the 
lower protection afforded to agricultural products (WTO definition), which decreased from 20.9% 
in 2012 to 14.3% in 2016. Non -agricultural products are subject to a lower averag e tariff of 4.6%, 
which did not vary during the review period. The zero rate is the most frequent tariff rate and is 
applied to 58.1% of tariff lines (58.3% in 2012). Even though the vast majority of tariffs are 
ad valorem , Mexico still applies compound ta riffs on 44 eight -digit tariff lines in the HS 2012. 
Mexico bound all its tariff lines in the Uruguay Round, with bound rates ranging from 0 to 254%. 
About 77% of the total were bound at 35%, 9% at levels below 35%, and the remainder at levels 
above 35%.  
12. Mexico still uses three types of tariff quota: those negotiated in the WTO, unilateral quotas 
and preferential quotas. Unilateral quotas are determined by the Ministry of the Economy in order 
to provide better access to the Mexican market for imported produ cts, when necessary; to cope 
with higher international prices; to provide better access for imported inputs; or to meet domestic 
demand when there is a shortfall in supply. Some products are subject both to quotas negotiated WT/TPR/S/35 2 • Mexico  
 
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  in the WTO and to unilateral qu otas, although the unilateral quota usually gives better access 
terms so the WTO -negotiated quotas are not used.  
13. Mexico imposes non -tariff measures to protect national security, public health, plant and 
animal health or the environment and for balance -of-payments reasons. Mexico therefore prohibits 
the import of certain chemicals and drugs (22 products of the HS 2012 at eight -digit level). The 
list has not changed since the previous  review. Mexico also has an import licensing system. In 
2013, it resumed usi ng automatic import licences (automatic permits or notices), which had been 
abolished in 2005. Thus, Mexico currently uses both automatic licensing and non -automatic 
licensing (prior permits). The purpose of these licences is not to restrict the quantity o r value of 
the imports. Automatic licensing is used to monitor trade flows and concerns products such as 
iron, textiles and footwear; whereas the purpose of non -automatic licensing is to regulate trade in 
specific products.  
14. The regulatory framework governi ng anti -dumping, countervailing and safeguard measures 
has not changed since the previous review. Mexico is an active user of anti -dumping (AD) 
measures and had 64 definitive AD measures in force at 30  November  2016, representing a 68.4% 
increase over the number reported for the previous review at De cember  2011, when there were 
38 measures. This number is, however, below that recorded in previous periods. At 
30 November  2016, Mexico applied definitive AD measures on imports of various products coming 
from 1 7 countries or territories. Approximately 60% of the definitive AD duties in force at 
November  2016 were imposed on steel products or steel manufacturing materials, machinery and 
equipment. Other imports subject to AD measures in November  2016 included in particular food, 
chemicals, plastics, paper, household products and textiles. During the period 2012 to 
November  2016, Mexico initiated 3 4 new AD investigations, as well as 35 sunset reviews of 
AD measures, 20 of which were completed during this period. In  80% of the cases, the 
investigations led to renewal of the duties. Mexico had three definitive countervailing measures in 
force at 30  November  2016, which concerned imports of medicaments from India. Mexico did not 
have recourse to global safeguard measur es during the review period.  
15. There have been no major changes to the regulatory framework or the procedure for 
preparing, issuing or revising standards, technical regulations and sanitary and phytosanitary 
measures since the previous review. Such measures are prepared in accordance with the principles 
of consensus and transparency and in general follow international regulations. The main change as 
regards standardization during the review period was the result of the reforms in the 
hydrocarbons, energy and telecommunications sectors. Previously, Petróleos Mexicanos (PEMEX) 
and the Federal Electricity Commission (CFE) issued Reference Standards (NRFs) (industrial or 
sectoral standards); these ceased to be issued as of 2012 and are currently being reviewed wit h a 
view to converting them into Mexican Official Standards (NOMs) (technical regulations) or Mexican 
Standards (NMXs). Likewise, since 2013, the Federal Telecommunications Institute (IFT), set up 
following the constitutional reform, has issued "technical provisions" that are mandatory for the 
telecommunications and broadcasting sector.  
16. The most important development since the previous review in respect of export 
requirements has been the computerization of customs procedures using the Digital Window. 
Custo ms clearance can be effected directly by the exporter or a customs broker. Exporters 
certified as "authorized economic operators" (OEAs) may use the "FAST" tracks available in certain 
customs offices.  
17. Mexico regulates exports and imposes export duties in o rder to guarantee supplies or to 
protect human health, the environment, fauna, flora and the cultural heritage. During the review 
period, the number of tariff lines (at the eight -digit level in the HS 2012) subject to export taxes 
fell sharply, from 25 in 2012 to just two in 2016 (bitumen and asphalt and bituminous mixtures). 
Moreover, the rate applied was lowered from 50% to  25%. As was the case in 2012, Mexico still 
bans the export of certain chemical products and drugs and also makes use of automatic lic ensing 
(automatic permits) and non -automatic licensing (prior permits) for exports. Automatic licensing 
(automatic permits) is used for the purpose of keeping a record of foreign trade transactions. 
Non-automatic licensing (prior permits) is used for the p urpose of regulating trade in specific 
products. In 2016, non -automatic export licensing applied mostly to chemical products.  
18. Mexico has two export promotion programmes: the programme for the promotion of the 
manufacturing, maquila and export services indu stry (IMMEX) and the import duty drawback WT/TPR/S/35 2 • Mexico  
 
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  programme, which were already operating at the time of the previous review and have not 
changed to any great extent. The IMMEX programme is extremely important for Mexico's trade. 
Over the period 2012 -2015, some 69 .7% of Mexico's exports and 50.5% of its imports on average 
were attributable to firms benefiting from the IMMEX programme. During the first nine months of 
2016, firms benefiting from the IMMEX programme were responsible for 58% of exports and 44% 
of impor ts. Mexico also has a number of support programmes to promote productivity, attract 
investment and create jobs and implements some sectoral programmes, mostly aimed at micro, 
small and medium -sized enterprises, which provide financial assistance, tax incen tives and 
technical training. In this regard, mention should be made of the sectoral promotion programmes 
(PROSEC) and of some tax concessions for payment of income tax (ISR) and the special tax on 
production and services (IEPS), consumption of diesel fuel  and the import of environmentally 
friendly machinery, inter alia . Mexico has notified several of these programmes to the WTO.  
19. During the review period (2012 -2016), the legal framework for Mexico's competition policy 
underwent far -reaching changes. Amendme nts to the Constitution were introduced and the new 
Federal Law on Economic Competition was published, repealing the 1992 Federal Economic 
Competition Law, which had governed this area up to 2014. Furthermore, in 2014, the Federal 
Telecommunications and Br oadcasting Law was published, repealing the specific laws that had 
applied to these sectors and affecting competition therein. Following these reforms, there are now 
two authorities responsible for implementing the Federal Law on Economic Competition, one of 
which – the Federal Telecommunications Institute – is solely responsible for regulating competition 
in this sector. During the review period, the competition authorities initiated 57 investigations into 
violations of the competition law, of which eight led to sanctions. Mexico imposes regulations or 
controls on the price of natural gas, liquefied petroleum gas, gasoline (petrol), diesel fuel, 
electricity and medicines.  
20. The State continues to play an important role in Mexico's economy, and the State secto r 
consists of both financial and non -financial enterprises. The latter may receive transfers, 
allocations and/or subsidies from the Government if their income fails to cover their production 
costs or to allow them to invest in facilities or make financial investments. PEMEX is still the 
largest State -owned enterprise.  
21. The regulatory framework for government procurement was amended during the review 
period in order to exclude totally from application of the legislation regulating government 
procurement in ge neral acquisitions, leases and services contracts entered into by State -owned 
production enterprises (PEMEX and the Federal Electricity Commission (CFE)) and their 
subsidiaries. Previously, this exclusion only applied partially to these two enterprises. In  open 
international bidding, Mexico still gives preferences to Mexican bidders over bidders from countries 
with which it has no trade agreement on government procurement. The margin of preference is 
15% of the lowest price in the domestic market for goods of Mexican origin in comparison with 
imported goods. Moreover, since 2014, a margin of preference has also been given to Mexican 
companies which implement policies for gender equality or for disabled persons or companies 
employing disabled workers, and to micro, small or medium -sized enterprises producing goods 
incorporating technological innovation. Mexico has not signed the WTO Agreement on Government 
Procurement and does not participate as an observer in the WTO Committee on Government 
Procurement.  
22. The m ain change to the legal framework of the regime protecting intellectual property rights 
during the review period concerned the registration of trademarks. Since 2016, the Mexican 
Industrial Property Institute (IMPI) has published both registrations granted  and applications, 
whereas previously it only published registrations granted. Moreover, in August  2016, a system 
came into force allowing registration of a trademark to be opposed prior to its registration. There 
have been no other major amendments to oth er industrial property rights, copyright or related 
rights. Mexico continues to make efforts to strengthen enforcement of intellectual property rights, 
both at the border and within Mexico.  
23. Mexico regards the agricultural and fishery sector as strategic be cause of its contribution to 
poverty reduction and economic development. One of the most important objectives of Mexico's 
agricultural policy is guaranteeing food security by increasing productivity. The authorities 
therefore consider it necessary to prote ct and support this sector. Even though the average tariff 
on agricultural products (WTO definition) fell from 20.9% in 2012 to 14.3% in 2016, it is still 
higher than the average tariff (5.5%). On average, the highest duties by WTO category continue WT/TPR/S/35 2 • Mexico  
 
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  to be applied to agricultural products, specifically sugar and confectionery, and to animals and 
animal products, with tariffs of 40.9% (63.3% in 2012) and 24.8% (48.2% in 2012), respectively. 
Some agricultural products are subject to seasonal tariffs and others  to compound tariffs which 
vary depending on the sugar content. Mexico continues to provide the sector with support through 
a series of programmes drawn up each year, the majority of which are nationwide in scope and 
cover any kind of agricultural activity . However, there are some specific programmes, whose sole 
beneficiaries are small coffee, bean and maize producers or people living in extreme poverty.  
24. In 2013, Mexico adopted a constitutional amendment which concerned the energy and 
telecommunications sec tors. As regards energy, the constitutional reform is aimed, inter alia , at 
encouraging investment in the sector. Accordingly, some restrictions on private investment 
(domestic and foreign) were lifted, except in "strategic" activities. Despite the reform,  whose aim 
was to increase competition in the sector, both PEMEX and the CFE still have a large share of the 
market. Nevertheless, the State may give contracts to private enterprises to participate in such 
activities if the State -owned companies have neith er the technology nor the resources required.  
25. Following reform of the energy sector, basic petrochemicals and electricity generation and 
sale are no longer regarded as strategic areas, in other words, they are no longer reserved 
exclusively to the State. L ikewise, FDI may now be as much as 100% in the marketing of petrol 
and distribution of liquefied petroleum gas, previously reserved t o Mexican nationals and 
Mexican  firms, with a foreigners exclusion clause. The same applies to the construction of pipeline s 
to transport oil and its derivatives, as well as the drilling of oil and gas wells, which previously 
required a favourable decision for FDI to be able to exceed 49%. Mexico has also established a 
fund to manage, invest and distribute the income derived f rom hydrocarbon exploration and 
exploitation and to build up a long -term savings reserve. The reserve has not yet been set up as 
income has not reached the minimum necessary to activate it (4.7% of GDP).  
26. Conditions of access to Mexico's banking market have  not changed since 2012. In 2014, 
Mexico undertook a financial reform aimed at greater expansion and inclusion of financial services. 
Measures were introduced to increase competition, raise the levels of lending by development and 
multiple (commercial) ban ks, and strengthen the financial system's prudential rules in order to 
make the institutions' performance more efficient. In the short term, the reform was followed by 
an increase in credit and its penetration index, lower interest rates and an improvement  in 
financial inclusion indicators. Despite the reform, there is still a high degree of concentration in the 
banking market. As regards the insurance market, in 2014, following the reform, a new law was 
introduced in order to make the operations of insuran ce institutions more transparent, and the 
restriction on foreign investment was lifted. Nevertheless, as in the banking market, there is a 
high degree of concentration despite the large number of companies active in the insurance 
market.  
27. By virtue of the f inancial sector reform, FDI may now be as much as 100% in insurance 
institutions, bonding institutions, currency exchange houses, general bonded warehouses, pension 
fund management firms, credit information companies, securities rating institutions and ins urance 
agents. Prior to the reform, there had been a 49% ceiling on the share of FDI in those activities, 
which could be surpassed only in the case of credit information companies, securities rating 
institutions and insurance agents, with authorization.  
28. During the review period, Mexico undertook a major reform of its telecommunications and 
broadcasting sector in order to boost its competitiveness so as to reduce prices and improve 
service quality. A new telecommunications law was enacted to implement the re form and the 
Federal Telecommunications Institute (IFT) was created as the regulatory body. Following the 
reform, restrictions on FDI were lifted; previously subject to a 49% ceiling, it can now be as much 
as 100% in fixed telephony and satellite communica tions. In the broadcasting sector, the 
reservation to Mexican nationals and to Mexican firms with a foreigners exclusion clause was 
eliminated; FDI of up to 49% is currently permitted (subject to the principle of reciprocity). A new 
concessions regime was also introduced, giving the right to provide any type of public 
telecommunications service; previously, a concession was required for each type of service.  
29. During the review period there were no changes to the FDI regime for the air transport 
sector. Forei gn investment is permitted, but foreigners may only invest a maximum of 25% in 
airline companies and 49% in airports and the supply of aviation fuel, although higher amounts 
may be authorized in airports under certain circumstances. Cabotage is prohibited.  The operation WT/TPR/S/35 2 • Mexico  
 
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  of private flights in Mexican territory is authorized under the multiple entry procedure. To build, 
manage and operate airports, a concession, awarded for 50 years (renewable), is  required. As 
regards maritime transport, foreign investment i s permitted but is limited to 49% in some 
services, such as port operators, shipping companies engaged in maritime transport in territorial 
waters and cabotage, and port and related services. Harbour pilots must be Mexican nationals and 
cabotage is reserve d for Mexican shipping companies with Mexican vessels, although foreign 
vessels may be given temporary permission to provide cabotage services.  
30. Mexico was among the world's top ten tourist destinations in 2015 and the sector makes an 
important contribution  to GDP, both directly and indirectly. The National Tourism Development 
Fund (FONATUR) contributes to the promotion and development of tourism and tourism resources 
and helps to promote the financing of private investment through agreements with developmen t 
banking.  
 
 WT/TPR/S/35 2 • Mexico  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Macroeconomic trends  
1.1.1   Structure, growth and employment  
1.1.  Since its previous review, Mexico has implemented a series of structural reforms to boost 
competitiveness and attain sustainable growth over the medium term (see below ). The reforms 
have also sought to raise levels of competition in the economy, particularly in sectors where this 
was insufficient, with the aim of reducing costs and enhancing consumer welfare.  
1.2.  In terms of the sectoral composition of gross domestic produc t (GDP), the share of mining 
shrank during the review period (2012 -2016) while manufactures and services both expanded 
(Table 1.1). Agriculture maintained its 2011 GDP share of about 3.5% at basic prices between 
2012 and 2015; while manufacturing continued  to make a major contribution to the Mexican 
economy, generating 18.8% of GDP in the latter year. Mining activity saw its share shrink during 
the period, from 8.7% of GDP at basic prices in 2012 to just 4.4% in 2015, reflecting lower oil 
prices and reduced  oil production. Services continued to expand their share in the review period, 
contributing 63.9% of GDP at basic prices in 2015 compared to 60.2% in 2012. However, this 
partly reflects the cross -sectoral adjustment associated with the decrease in the sha re of the oil 
sector, and the positive effect of structural reforms in the services sector. Within the latter, trade 
makes the largest contribution to GDP, followed by real estate services.  
1.3.  In 2011 -2015, Mexico's real GDP grew at an average annual rate of 2.8%, an increase over 
the previous review period, when annual GDP growth averaged 1.4%. This stronger growth 
performance mainly reflects the results achieved in 2011 and 2012, when the economy grew by 
4% in both cases, before entering a slower growth phas e with expansions of 1.4%, 2.2% and 
2.5%, respectively over the next three years. Mexico's per capita income remained around 
US$10,000 during the review period.  
Table 1.1 Basic economic indicators, 2011 -2016 ( first half)  
 2011  2012  2013  2014  2015  2016a 
I. Gross domestic product (GDP)b 
Current GDP (MEX$  billion)  14,527  15,599  16,079  17,217  18,195  18,780  
Current GDP (US$  billion)  1,169  1,185  1,259  1,295  1,148  1,040  
Real GDP, growth rate (%)  3.9 4.0 1.4 2.2 2.5 2.5 
Per capita GDP (current MEX$)  125,579  133,266  135,808  143,819  150,363  153,591  
Per capita GDP (US$)  10,108  10,119  10,633  10,820  9,488  8,503  
By branch of activity (percentage of GDP at basic prices)  
Agriculture, forestry, fishing and hunting  3.5 3.5 3.5 3.5 3.7 3.9 
Mining  9.3 8.7 7.6 7.2 4.4 4.1 
Utilities  1.8 1.6 1.7 2.0 1.9 1.7 
Construction  8.2 8.2 7.6 7.5 7.7 7.6 
Manufacturing  17.1 17.9 17.6 17.7 18.8 18.9 
Services  60.4 60.2 62.2 62.3 63.9 63.8 
Trade  15.5 15.6 16.1 16.4 17.5 16.8 
Transport,  postal and warehousing services  6.1 6.3 6.5 6.5 6.6 6.7 
Information in mass media  2.5 2.3 2.3 2.2 2.1 1.9 
Financial and insurance services  3.2 3.1 3.5 3.5 3.6 3.6 
Real estate, rental and leasing of movable and 
intangible property  12.0 11.7 11.9 11.7 11.7 11.9 
Professional, scientific and technical services  2.2 2.2 2.2 2.2 2.3 2.4 
Corporate services  0.6 0.6 0.6 0.6 0.6 0.6 
Business support and waste management and 
remediation services  3.2 3.2 3.3 3.3 3.3 3.4 
Educational services  4.0 4.1 4.3 4.3 4.4 4.4 
Health and social services  2.2 2.2 2.4 2.3 2.4 2.4 
Leisure, cultural, sporting and other recreational 
services  0.5 0.5 0.5 0.45 0.45 0.4 
Hotel and restaurant services  2.1 2.1 2.2 2.2 2.4 2.4 
Other services except public administration  2.1 2.1 2.1 2.1 2.1 2.2 
Public administration  4.1 4.2 4.3 4.4 4.4 4.6 
Product taxes, net  3.5 3.1 3.9 5.2 5.9 7.6 
II. Other economic indicators (percentage of current GDP)  
Gross national saving  22.3 23.1 21.7 21.5 22.7 22.6 
III. Employment  
Employment rate (%)  94.8 95.1 95.1 95.2 95.7 96.0c 
Unemployment rate (%)  5.2 4.9 4.9 4.8 4.3 4.0c WT/TPR/S/35 2 • Mexico  
 
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   2011  2012  2013  2014  2015  2016a 
IV. Memorandum item  
Economically active population (%)  59.7 60.4 60.3 59.8 59.8 59.27  
Total population (million)  115.7  117.1  118.4  119.7  121.0  122.3  
a Six months. Annualized G DP. 
b The quarterly GDP figures shown here include the adjustment to the annual calculation of the 
revised 2014 Goods and Services Account and the latest statistical information available from 
economic surveys and administrative records, for which reason t here are differences in the amounts 
and variations that were published at the time.  
c Figures to August.  
Source:  National Institute of Statistics and Geography (INEGI); Bank of Mexico.  
1.4.  Economic growth in Mexico has continued to be driven largely by domesti c demand and 
exports to the United States, particularly manufactured products. Weaker growth in that country 
affects various export sectors, especially the automotive industry, with consequent negative 
effects on gross capital formation. The slowdown in ec onomic growth in 2013 was partly due to the 
weakness of domestic demand, specifically lower rates of gross capital formation, but this was 
partly in response to softer demand from the United States, where 2013 saw a dip in economic 
growth. In 2014, Mexican  GDP growth rebounded on the back of recoveries in both domestic 
demand and exports. Nonetheless, the stronger domestic demand mainly reflected a revival of 
investment, since private consumption growth remained relatively weak.  
1.5.  In 2015, the Mexican economy  expanded by 2.5%, slightly ahead of expectations.1 This 
expansion was supported by an upturn in final demand, particularly private consumption, but also 
gross capital formation; and it occurred despite the adverse effects on the Mexican economy of the 
lower oil price and the slowdown in industrial production in the United States.  
1.6.  In the first half of 2016, the Mexican economy continued to perform strongly, posting 
annualized GDP growth of about 2.5%. This occurred even though GDP shrank in the 
second quart er in seasonally adjusted terms, reflecting the weakness of external demand and 
investment, and the slowdown in consumption relative to previous quarters.2 The slackness of 
world trade, the relative stagnation of United States manufacturing output and lack lustre global 
growth undermined Mexico's manufacturing exports, both to the United States and to the rest of 
the world. Automotive exports to the United States trended downwards in the quarter, partly 
owing to temporary shutdowns in several assembly plants  and flat sales of light vehicles on the 
United States market. Oil exports staged something of a recovery in April -July 2016, but remained 
at decidedly low levels.3 The Mexican economy displayed a modest recovery in the third quarter of 
2016, following the  previous quarter's contraction, fuelled mainly by a pick -up in external demand, 
which led to a recovery in manufacturing exports, and by private consumption, while gross fixed 
investment remained sluggish.4 
1.7.  Reflecting the results obtained in the first thr ee quarters of 2016 and the persistence of an 
adverse external environment, the Mexican authorities downgraded their forecast ranges for 
economic growth in 2016 and 2017. The Bank of Mexico now expects Mexican GDP to expand 
between 1.8% and 2.3% in 2016, c ompared to the 2.0% -3.0% recorded in the first quarter and 
1.7% -2.5% estimated for the second. Similarly, the forecast range for 2017 was revised down to 
between 1.5% and 2.5%, compared to previous forecasts of 2.3% -3.3% and 2.0% -3.0%, 
respectively. The au thorities hope that the structural reforms implemented (see below), in 
conjunction with their efforts to strengthen the stability of the macroeconomic framework, will 
foster the recovery of private domestic expenditure and gradually generate a more favoura ble 
growth environment leading to stronger growth of consumption and investment. Considering these 
                                                
1 Bank of Mexico (2016), Quarterly Report, October -December  2015. Summary . Viewed at:  
http://www.banxico.org.mx/publicaciones -y-discursos/publicaciones/informes -periodicos/trimestral -
inflacion/indexpage001.html  . 
2 Bank of Mexico (2016), Quarterly Report, April -June 2016. Viewed at:  
http://www.banxico.org.mx/publicaciones -y-discursos/publicaciones/informes -periodicos/trimestral -
inflacion/indexpage001.html . 
3 Ibid. Summary. Viewed at:  http://www.banxico.org.mx/publicaciones -y-
discursos/publicaciones/informes -periodicos/trimestral -inflacion/indexpage001.html . 
4 Bank of Mexico (2016), Quarterly Report, July -September  2016. Viewed at:  
http://www.b anxico.org.mx/publicaciones -y-discursos/publicaciones/informes -periodicos/trimestral -
inflacion/indexpage001.html . WT/TPR/S/35 2 • Mexico  
 
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  growth forecasts, the output gap is expected to remain negative in 2016 and 2017, without price 
pressures from the trend of aggregate demand. The authorities  have also identified certain 
downside risks associated with the growth forecast, particularly: (i) the possibility that Mexican 
exports will remain in the doldrums; and (ii) the political and economic panorama prevailing in the 
United States could hamper Mexican growth, as investment falters. Upside risks include the 
possibility that: (i) the structural reforms will boost growth  sooner than expected; 
and (ii) consumption will achieve a more pronounced and longer lasting sustainable revival.5 For 
2018, GDP growth is expected to come in at between 2.2% and 3.2%, depending on the economic 
policies to be adopted by the new United States administration.6 
1.8.  Private consumption grew faster than GDP every year in the review period except for 2014 
(Table 1.2), when it  slowed down before rebounding in 2015, and in the first two quarters of 2016 
it again outpaced GDP. In the last few years, consumption has been underpinned by positive 
trends in employment and real wages, and easier access to credit. Family remittances co ntinued to 
be a major source of financing for consumption, totalling US$2 4,785  million or 2.3% of GDP 
in 2015.  
Table 1.2 Structure of GDP by expenditure, 2011 -2016 (Q1 and Q2)  
 2011  2012  2013  2014  2015  2016  
(Q1)a 2016  
(Q2)a 
As a percentage of current GDP  
Supply         
Gross production  170.6  171.9  171.1  169.8  171.2  173.2  175.2  
Imports of goods and services  32.5 33.8 32.7 33.4 37.5 37.5  39.5 
Use        
Intermediate demand  70.6 71.9 71.1 69.8 71.2 73.2 75.2 
Final demand  132.5  133.8  132.7  133.4  137.5  137.5  139.5  
Total consumption  77.8 79.1 80.7 80.1 81.5 81.9 80.2 
Private consumption  66.3 67.3 68.6 67.9 69.2 69.5 68.2 
Government consumption  11.6 11.8 12.2 12.2 12.3 12.3 12.0 
Gross fixed capital formati on 21.7 22.3 21.1 21.0 22.2 21.4 22.4 
Changes in inventory  0.5 0.7 0.6 0.6 0.5 0.3 1.1 
Exports of goods and services  31.3 32.6 31.8 32.3 35.4 35.8 37.7 
Statistical discrepancy  1.1 -1.0 -1.5 -0.6 -2.2 -1.9 -1.9 
GDP by expenditure at constant prices , growth rate (%)  
GDP 4.0 4.0 1.4 2.2 2.5 2.4 2.5 
Supply         
Gross production  3.8 4.1 1.4 2.3 2.6 2.3 2.4 
Imports of goods and services  8.1 5.5 2.6 6.0 5.0 2.1 0.8 
Use        
Intermediate demand  3.5 4.3 1.4 2.5 2.8 2.1 2.1 
Final demand  5.0 4.4 1.7 3.1 3.1 2.4 2.1 
Total consumption  4.5 4.7 2.0 1.8 3.0 2.8 2.4 
Private consumption  4.8 4.9 2.1 1.8 3.1 3.3 2.6 
Government consumption  2.4 3.5 1.0 2.1 2.3 -0.4 1.7 
Gross fixed capital formation  7.8 4.8 -1.6 2.9 3.8 0.6 0.6 
Exports of goods and services  8.2 5.8 2.4 7.0 9.0 1.4 0.6 
a Preliminary figures.  
Source:  National Institute of Statistics and Geography (INEGI).  
1.9.  The pace of gross capital formation, which ran ahead of GDP growth in 2012, largely owing to 
higher levels of private investment in machinery and construction, shrank by 1.6% in 2013. This 
reflected worsening expectations and the deteriorating global economic situation. Investment 
growth regained momentum in the following year, when again it outstripped GDP; but it lost steam 
once more in the fi rst half of 2016, partly owing to weaker investment in the oil sector.7 Capital 
                                                
5 Bank of Mexico (2016), Quarterly Report, April -June 2016. Summary . Viewed at:  
http://www.banxico.org.mx/publicaciones -y-discursos/publicaciones/informes -periodicos/trimestral -
inflacion/indexpage001.html . 
6 Bank of Mexico (2016), Quarterly Report, July -September  2016. Viewed at: 
http://www.banxico.org.mx/publicaciones -y-discursos/publicaciones/informes -periodicos/trime stral-
inflacion/indexpage001.html . 
7 In the first half of 2016, gross fixed investmen t, valued at constant 2008 prices, grew by just 0.6%, 
compared to 5.5% in the year -earlier period.  WT/TPR/S/35 2 • Mexico  
 
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  expenditure also faltered in that semester both in construction and in machinery and equipment; 
imports of machinery and equipment in particular fell by 3.2% compared to the sa me period of 
2015, whereas the domestic equivalent grew by 7.6%. Public investment contracted by 9.1% in 
the first six months of 2016, while private sector investment grew by 2.6%.  
1.10.   Exports of goods and services grew at an average rate of 6.7% per year in 2 011-2015, 
outpacing GDP growth every year, while imports of goods and services also grew faster than GDP 
at an average annual rate of 6.1%.  
1.11.   The relative economic stability enjoyed by Mexico in the review period has been matched by 
declining unemployment, a s the rate fell from 5% in 2012 to 4.3% in 2015, and to 4% according 
to preliminary figures for 2016.  
1.12.   Mexico continues to face the challenge of increasing labour productivity and making the 
economy generally more competitive. During the review period, the Government introduced policy 
changes to that end, including a programme of 11 structural reforms covering various sectors and 
areas. These were:  
 energy reform: a new law was passed that substantially reforms the energy sector 
(Section  4.2). The aim is to s ecure energy requirements, specifically oil, electricity, 
renewable energy and natural gas, while laying the foundations for modernization of the 
sector to attract investment and boost economic growth and job creation;  
 economic competition reform: a new la w was passed to enforce market competition laws, 
while protecting consumer rights (Section 3);  
 reform of telecommunications and broadcasting: a new law aims to generate effective 
competition in the sector, reduce prices and increase coverage (Section 4);  
 tax reform: amendments to the tax laws aim to increase revenue collection and its 
efficiency, making it possible to allocate more substantial funding to certain areas of 
development, such as education, social security and infrastructure (see below);  
 financi al reform: the aims of the new legislation include making credit more accessible to 
families and firms (Section 4);  
 labour reform: the new regulations aim to make the labour market more flexible and combat 
informality;  
 education reform: the new law aims to  improve access to education and raise its quality;  
 new Amparo law: mechanisms to avoid cases of abuses of power by public officials are 
reinforced;  
 National Code of Criminal Procedure;  
 political -electoral reform; and  
 transparency reform.  
1.13.   As a result of th e Article IV Consultation in 2015, the International Monetary Fund (IMF) 
noted that Mexico has faced a complex global environment over the last year, characterized by a 
rise in global financial market volatility and the collapse of oil prices . Nonetheless,  the Fund reports 
that the Mexican economy has continued to grow at a moderate pace, and capital outflow 
pressures have been limited . The flexible exchange rate has helped the economy absorb external 
shocks, while inflation has remained low and stable . Mexico is implementing a broad range of 
structural reforms, which should help lift potential growth over the medium term .8 
                                                
8 IMF Press Release No.  15/519: IMF Executive Board Concludes 2015 Article IV Consultation with 
Mexico . Viewed at: http://www.imf.org/es/News/Articles/2015/09/14/01/49/pr15519 . WT/TPR/S/35 2 • Mexico  
 
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  1.14.   During the review period, Mexico signed three agreements with the IMF under the Flexible 
Credit Line (2012, 2014 and 2016), making six a rrangements of this type thus far, which Mexico 
intends to treat as precautionary. The latest was signed on 27  May 2016, for US$88  billion, 
cancelling the previous US$67  billion arrangement of 2014. The IMF stresses that Mexico's 
macroeconomic policies and  financial regulation and supervision framework remain strong. It also 
considers that the economy has shown capacity to recover from the global growth slowdown of the 
last few years; economic activity is growing at a steady pace, inflation is low and stabl e, and the 
financial system is sound. Nonetheless, it stresses that the economy remains exposed to external 
risks. In addition, the Fund indicates that the authorities remain committed to enhancing Mexico's 
resistance to external shocks by implementing fis cal consolidation plans.9 
1.15.   The Organisation for Economic Co -operation and Development (OECD) recommends 
implementing reforms to promote economic growth and reduce informality, making it possible to 
share the fruits of growth. The reforms recommended by the OECD to promote growth and reduce 
informality include strengthening administrative capacity and the rule of law, addressing security 
problems and reducing corruption. In addition, to share the fruits of growth, the OECD 
recommends improving the equity and efficacy of education spending, concentrating on improving 
the quality of teaching; promoting access to quality medical care by improving coordination 
between health institutions to avoid redundancies; and encouraging women to join the formal 
labour market .10 
1.1.2   Fiscal policy  
1.16.   The Ministry of Finance and Public Credit (SHCP) is responsible for formulating fiscal policy 
in Mexico, while the Federal Budget and Treasury Accountability Law (LFPRH) and its reforms 
constitute the most important fiscal legislation.11 Article 42 of that Law requires the SHCP to 
submit a draft Revenue Law and a proposed Expenditure Budget for approval by Congress each 
year; and it defines budgetary balance as the key objective of the non -financial public sector 
(NFPS). Nonetheless, in exce ptional circumstances the Law allows the SHCP to put forward a 
budget that is in deficit; but in such cases it must inform Congress of the specific amount of 
funding needed to cover the deficit with the corresponding justifications, and specify the actions  
and number of fiscal years needed to restore fiscal balance. Investment expenditure by the 
State -owned oil company Petróleos Mexicanos (PEMEX) and its subsidiary production enterprises 
(EPS) is not considered for budgetary -balance purposes.12 A reform of t he LFPRH introduced in 
2014 provided that the financial balance of State -owned production enterprises must contribute to 
the financial health of the Federal Government and to an orderly evolution of the historical balance 
of the public sector's financing r equirements.  
1.17.   The LFPRH requires the estimated amount of oil revenues to be included in each Revenue 
Law and Expenditure Budget. It also provides that if oil revenues decline owing to a fall in oil 
prices during the fiscal year, as is currently the case, st abilization funds may be drawn down; but 
when these run out, expenditure cuts must be made. Adjustment mechanisms are also contained 
in the LFPRH.13 
1.18.   Following an improvement in 2012 and 2013, federal government finances deteriorated 
slightly in 2014 and 201 5; and in 2014 Congress was asked to authorize a deficit, as a 
countercyclical measure and to support the reforms. The public sector balance ended these last 
two years with deficits of 3.2% and 3.5% of GDP, respectively, with corresponding primary deficits  
of 1.1% and 1.2% (Table  1.3). 
                                                
9 IMF Press Release No.  16/250, IMF Executive Board Approves New Two -Year US$88 Billion Flexible 
Credit Line Arrangement with Mexico , of 27  May 2016. Viewed at:  
http://www.imf.org/external/pubs/ft/scr/2016/cr16137.pdf . 
10 OECD (2015), OECD Economic Surveys: Mexico, January  2015. Viewed at: 
http://www.oecd.org/eco/surveys/Mexico -Overview -2015.pdf . 
11 The latest reform was published in the Official Journal of the Federation (DOF) of 30  December  2015.  
12 Article 17 of the LFPRH.  
13 Ibid., Article 21.  WT/TPR/S/35 2 • Mexico  
 
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  Table 1.3 Balance of the federal non -financial public sector (NFPS), 2011 -2016 (Q2)  
(Percentage of GDP)  
 2011  2012  2013  2014  2015a 2016  
(Q2)a 
Budgetary income  22.5 22.5 23.6 23.1 23.5 11.5 
Tax revenue  8.9 8.4 9.7 10.5 13.1 6.9 
Income system  5.3 5.1 5.9 5.6 6.7 3.8 
Income  5.0 4.9 5.6 5.7 6.8 3.8 
Flat-rate business tax  0.3 0.3 0.3 -0.1 -0.1 0.0 
Value added  3.7 3.7 3.5 3.9 3.9 1.8 
Gasoline (petrol)b 0.6 0.5 0.6 0.6 n.a. n.a. 
Other  3.1 3.2 2.9 3.3 3.9 1.8 
Production and services  -0.5 -0.8 0.0 0.6 2.0 1.0 
Gasoline (petrol) and diesel  -1.0 -1.3 -0.5 -0.1 1.2 0.7 
Federal  -1.1 -1.4 -0.7 -0.2 1.1 0.6 
State  0.1 0.1 0.1 0.1 0.1 0.1 
IEPS, other  0.5 0.5 0.5 0.7 0.7 0.3 
Imports  0.2 0.2 0.2 0.2 0.2 0.1 
PEMEX  0.0 0.0 0.0 0.0 0.0 0.0 
Other  0.2 0.2 0.2 0.2 0.2 0.1 
Accessories  0.2 0.2 0.2 0.1 0.1 0.1 
Other tax revenues  0.1 0.1 0.0 0.0 0.1 0.0 
Non-tax income  7.1 7.3 7.1 6.3 4.5 2.3 
Duties  6.1 6.2 5.6 4.8 0.3 0.2 
Hydrocarbons  5.8 5.9 5.3 4.5 0.1 0.0 
Of which: oil extraction  5.0 4.9 4.5 3.8 -0.1 0.0 
Non-oil duties  0.2 0.3 0.3 0.3 0.3 0.2 
Other revenue ( aprovechamientos )c 0.9 1.1 1.4 1.4 1.9 1.4 
Transfers from the Mexican Petroleum 
Fund for Stabilization and Development  0.0 0.0 0.0 0.0 2.2 0.7 
Fees ( productos ) 0.0 0.0 0.0 0.0 0.0 0.0 
Income of organizations and firms  6.5 6.8 6.8 6.4 6.0 2.3 
Memorandum item        
Oil revenuesd 8.6 8.9 8.3 7.1 4.7 1.6 
Budgetary expenditure  25.0 25.1 25.9 26.3 27.0 12.1 
Programmablee 19.7 19.9 20.6 20.8 21.1 9.1 
Current  14.8 15.1 15.1 15.6 15.9 6.8 
Personal services  5.9 5.9 6.0 5.9 5.9 2.4 
Direct  3.4 3.4 3.4 3.4 3.4 1.4 
Indirect  2.6 2.5 2.6 2.5 2.5 1.0 
Other operating expenses  5.7 5.9 5.7 5.8 6.1 2.5 
Materials and supplies  1.7 1.7 1.7 1.4 1.3 0.5 
General services  3.6 3.7 3.8 4.0 4.3 1.9 
Other outgoings  0.4 0.4 0.2 0.4 0.5 0.1 
Subsidies and transfers  3.2 3.3 3.5 3.8 3.9 1.9 
Capital  4.8 4.7 5.4 5.2 5.2 2.3 
Physical investment  4.5 4.4 4.6 4.8 4.3 1.7 
Direct  3.1 2.9 2.8 3.0 2.6 1.1 
Indirec t 1.4 1.4 1.7 1.8 1.7 0.6 
Other capital expenditure  0.4 0.4 0.9 0.4 0.9 0.6 
Direct  0.2 0.2 0.8 0.4 0.9 0.5 
Indirect  0.2 0.2 0.1 0.0 0.0 0.0 
Non-programmable expenditure  5.3 5.2 5.3 5.5 5.9 3.1 
Financial cost  1.9 2.0 2.0 2.0 2.3 1.2 
Shareholdings  3.3 3.2 3.3 3.4 3.5 1.7 
Arrears from prior fiscal years ( Adefas ), 
other 0.1 0.1 0.1 0.1 0.2 0.1 
Public sector balance  -2.4 -2.6 -2.3 -3.2 -3.5 -0.6 
Budget balance  -2.5 -2.6 -2.3 -3.2 -3.5 -0.6 
Federal Government  -2.5 -2.6 -2.4 -2.8 -3.0 -0.5 
Entities und er direct budgetary control  0.2 0.3 0.3 0.3 0.2 0.4 
IMSS 0.1 0.1 0.1 0.1 0.1 0.3 
ISSSTE  0.1 0.2 0.2 0.2 0.2 0.1 
State -owned production enterprises  -0.2 -0.2 -0.2 -0.6 -0.7 -0.6 
PEMEX  -0.3 -0.2 -0.2 -0.8 -0.8 -0.6 
CFE 0.1 0.0 0.0 0.2 0.2 0.0 
Other  0.0 0.0 0.0 0.0 0.0 0.0 
Entities under indirect budgetary control  0.0 0.0 0.0 0.0 -0.1 0.0 
Non-budgetary balance  0.0 0.0 0.0 0.0 0.0 0.1 
Differences with financing sources  0.0 0.0 0.0 0.0 -0.1 0.0 
Primary balance  -0.6 -0.6 -0.4 -1.1 -1.2 0.6 
Budget bala nce -0.6 -0.6 -0.4 -1.2 -1.2 0.5 
Federal Government  -0.9 -1.0 -0.8 -1.1 -1.3 0.5 
Organizations and firms  0.2 0.3 0.3 0.3 0.2 0.4 WT/TPR/S/35 2 • Mexico  
 
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   2011  2012  2013  2014  2015a 2016  
(Q2)a 
IMSS 0.1 0.1 0.1 0.1 0.1 0.3 
ISSSTE  0.1 0.2 0.2 0.2 0.2 0.1 
State -owned production enterprises  0.0 0.1 0.1 -0.3 -0.2 -0.3 
PEMEX  -0.1 0.0 0.0 -0.5 -0.4 -0.4 
CFE 0.1 0.1 0.1 0.3 0.2 0.0 
Other  0.0 0.0 0.0 0.0 0.0 0.0 
Entities under indirect budgetary control  0.0 0.0 0.0 0.0 0.0 0.1 
Memorandum items        
Current expenditure  20.1 20.3 20.5 21.1 21.8 9.8 
Capital expenditur e 4.9 4.8 5.5 5.2 5.2 2.3 
Pension spending  2.7 2.7 2.9 3.1 3.2 1.5 
Net domestic debt of the federal public 
sector (Mex$  billion)  3,258.5  3,770.0  4,230.9  4,804.3  5,379.9  5,412.6  
Net external debt of the federal public sector 
(US$ million)  113,632  121,659  130,950  145,617  161,610  175,387  
Net total debt of the federal public sector 
(% of GDP)  33.3 34.3 36.9 40.3 45.0 43.0 
n.a. Not available.  
a Preliminary figures as a percentage of annual GDP.  
b As from 2015, information on VAT levied on petrol cannot be o btained from the records on revenue 
from budgetary income, so it is considered not available.  
c In January -June 2016, includes revenue in respect of the remainder of Bank of Mexico operations, 
amounting to Mex$239,093.8  million.  
d Up to 2014, includes PEME X own revenue and hydrocarbons levies. As from 2015 includes PEMEX 
own revenue, transfers from the Mexican Petroleum Fund for Stabilization and Development, and 
income tax levied on contractors and allocation holders in respect of hydrocarbons production.  
e To avoid double -counting of public revenue and expenditure, counterparty operations are excluded, 
i.e. transactions that represent an income for entities under direct budgetary control and 
expenditure for the Federal Government (subsidies, transfers and contributions to the ISSSTE).  
Note:  The subtotals and variations may differ owing to rounding.  
Source:  Ministry of Finance and Public Credit (SHCP), Government Finance and Budget.  
1.19.   During the review period, Mexico made a considerable effort to incre ase its tax revenue 
(see below). The results of these efforts, implemented mostly since late 2013, can be seen in the 
growth of tax revenue from 9.7% of GDP in 2013 to 13.1% in 2015. In particular, higher revenue 
was obtained from income tax (ISR), value added tax  (VAT) and the special tax on production and 
services (IEPS). In 2015, ISR achieved the largest increase in all federal government revenue 
categories, with total revenue equivalent to 6.8% of GDP. Taxes on foreign trade generate only 
small amounts, equival ent to 0.2% of GDP, or 0.6% of import value. This reflects the fact that a 
large proportion of trade is conducted free of duty with preferential partners, particularly the 
United States.  
1.20.   As a result of the tax reform and the fall in the oil price, governme nt finances became 
significantly less dependent on oil revenues during the review period. Whereas hydrocarbons 
generated 39.4% of total federal public sector income in 2012, and 35.4% in 2013, in the 
two ensuing years they represented 30.8% and 19.8% of to tal income, respectively. Oil revenues 
shrank from 8.6% of GDP in 2012 to 7.1% in 2014, and to 4.7% a year later.  
1.21.   Budgetary expenditure grew from 25.2% of GDP in 2013 to 27% in 2015. The GDP share of 
current expenditure rose by 0.8 percentage points betwee n 2012 and 2015. Non -programmable 
expenses increased by 0.7 percentage points of GDP during the period.  
1.22.   Total public sector financing requirements remained broadly stable between 2011 and 2013, 
but rose by around one percentage point as from 2014 (Table 1. 3). 
1.23.   As part of the structural reform process, in late 2013 Mexico introduced a tax reform that 
aimed to increase revenue collection and make it more efficient. To that end, it adopted several 
measures, including an expansion of the tax base, a hike in the personal ISR rate, and the WT/TPR/S/35 2 • Mexico  
 
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  abolition of certain taxes and introduction of new ones, as described in Box 1.1.14 Measures were 
also adopted to improve equity by making the tax scale more progressive and eliminating certain 
deductions and exemptions to increas e revenue. Steps were also taken to make it easier for 
taxpayers to fulfil their obligations by simplifying tax payment and eliminating certain levies, to 
encourage formality by creating a special regime, and to improve public expenditure quality.15 
1.24.   The tax  reform established a structural balance rule for government finances, which made 
fiscal responsibility a State policy. This rule aims to strengthen macroeconomic management by 
establishing a medium -term fiscal anchor and by simplifying the regime governin g surplus revenue 
and stabilization funds.  
Box 1.1 Key measures of the 2014 Tax Reform  
Changes to the Law on Income Tax (ISR)  
The reform abolished the flat -rate business tax (IETU) and the tax on cash deposits (IDE), and passed a new Income 
Tax Law, which expands the corresponding tax base so as to generate the same revenue as the three taxes that 
existed in 2013. Tax payments were also simplified, by eliminating most of the preferential regimes and special 
treatments. To simplify and promote formality among private individuals engaging in business activities, the tax 
inclusion regime (RIF) was created, as a temporary arrangement offering graduated discounts on the payment of 
income tax over a ten -year period for  taxpayers joining the regime. The reform also created a specific ISR payment 
regime for the primary and road transport sectors.  
The immediate deduction incentive for investment was abolished.  
A ceiling was placed on the percentage of employee tax -exempt i ncome that can be claimed by the company as an 
ISR-deductible expense.  
Measures were introduced to make the personal tax scale more progressive:  
 the reform established a 10% tax on personal income from capital gains obtained from the sale of shares 
on the stock exchange and dividend distribution;  
 a global limit was set for personal income tax deductions;  
 the marginal ISR rate was raised from 30% to 32% for taxpayers with annual incomes of at least 
Mex$750,000, 34% for those with annual incomes above Mex$1  million and 35% for annual incomes 
above Mex$3  million;  
 adjustments were made to the maquila regime;  
 personal deductions were capped at four times the annualized minimum wage or 10% of the taxpayer's 
annual income, whichever is smaller.  
Law on Value  Added Tax (VAT)  
The changes made to VAT aim to eliminate or downsize special regimes.  
The changes made include alignment of the rate payable at the border with that applicable in the rest of the country, 
and abolition of the exemption for temporary imports. Prio r to the reform, operations in the border zone were taxed at 
a preferential rate of 11%. Since the reform, the 16% rate has been applied throughout the country. In addition, the 
zero-rating of pet food and chewing gum was abolished.  
Green taxes  
 A flat -rate tax on fossil fuels was established, based on carbon content. In 2015, the rates charged on 
different types of fuel were as follows: propane: Mex$5.91 cents per litre; butane: Mex$7.66 cents per 
litre; gasoline (petrol) and aviation fuel: Mex$10.38 cents  per litre; jet fuel and other kerosenes: 
Mex$12.40 cents per litre; diesel: Mex$12.59 cents per litre; fuel oil: Mex$13.45 cents per litre; 
petroleum coke: Mex$15.60 per tonne; coking coal: Mex$36.57 per tonne; coal: Mex$27.54 per tonne; 
other fossil fuel s: Mex$39.80 per tonne of carbon contained in the fuel. The amount of the tax will be 
adjusted annually according to the variation in the national consumer price index, so as to remain 
constant in real terms.  
 The reform also introduced an ad valorem  tax on  pesticides, herbicides and fungicides, based on the 
product's toxicity category, with rates of between 0% and 9% as from 2015 (in 2014 the rates were 
between 0% and 4.5%). In the case of imports, the tax base is the value used for tariff purposes, plus 
other levies payable, except for VAT.  
Taxes on products harmful to health  
The reform created taxes that discourage the consumption of goods that are harmful to health because of their effect 
on obesity and associated diseases:  
 A tax of Mex$1 per litre was i mposed on beverages containing added sugar.  
 An 8% tax was imposed on high -calorie non -staple foods.  
 Basic consumer foods, e.g. those belonging to the maize and wheat chains, and other cereal foods not 
containing sugar, were exempted from the tax.  
                                                
14 Government of Mexico (2014 ), Reforma de la Hacienda Pública . Resumen Ejecutivo . Viewed at:  
http://bibliotecadigital.tamaulipas.gob.mx/archivos/descargas/9242255 a20e055e6430a107fe5c331160a43fa4f.
pdf. 
15 Government of Mexico (2014), Explicación Ampliada de la Reforma Hacendaria. Viewed at:  
https://www .gob.mx/cms/uploads/attachment/file/2926/Explicaci_n_Ampliada_de_la_Reforma_Educativa.pdf . WT/TPR/S/35 2 • Mexico  
 
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  Reform t o the Mining Tax Regime (new Federal Law on Duty(LFD) of 11  December  2013)  
The reform established additional levies on mining activities, designed to enable the State to obtain revenue more 
efficiently and in proportion to the economic value generated. Thr ee new levies were created under the LFD:  
 the special 7.5% levy on net profit from the disposal or sale of the extractive activity;  
 the extraordinary mining levy, corresponding to 0.5% of the proceeds obtained from sales of gold, silver 
and platinum; and  
 an additional mining levy per hectare in concession areas that are not being explored or worked. It 
consists of 50% of the top rate of the mining levy and applies to concession holders that do not undertake 
demonstrable exploration and production works in t wo consecutive years, during the first 11  years of the 
concession, counted from the date of issuance of the respective title. The rate will be increased by 100% if 
the inactivity continues in the 12th year and beyond.  
The additional revenues generated by t he new mining regime will mainly benefit the localities where mining activity is 
carried on. Municipal governments in those localities will receive 50% of the proceeds, the states will receive 30% and 
the Federal Government 20%.  
A tax incentive is granted to the holders of mining concessions and allocations whose total gross income per year from 
the sale or disposal of minerals is less than Mex$50  million, by allowing the special mining levy to be credited against 
the income tax payable by the mining conces sion or allocation holders.  
Fight against informality  
The tax inclusion regime (RIF) was created to provide a path to formality for firms and their workers. The objective is 
to encourage non -tax-paying firms and individuals to formalize their activities, by allowing them to start paying 
income tax at reduced rates. A graduated payments schedule is offered spanning a maximum 11 -year period, in which 
no tax is paid in the first year, but the payment proportion rises by 10 percentage points in each subsequent  year until 
the ISR is being paid in full.  
Source:  Ministry of Finance and Public Credit (SHCP).  
1.25.   The IMF welcomed Mexico's efforts to enhance fiscal discipline and accountability, while at 
the same time retaining sufficient flexibility to respond to chang ing circumstances . In the context 
of the Article IV Consultation held in 2015, the Fund recommended that the authorities explore 
possible initiatives to further strengthen the Fiscal Responsibility Law over time, including 
consideration of a long -term nomi nal anchor and tighter exceptional circumstance clauses, as well 
as institutional enhancements. The IMF also expressed its support for the proposed fiscal 
responsibility framework for state and local governments, stressing that capacity building at the 
local government level is key to its implementation .16 
1.26.   The public sector's net total debt grew relative to GDP during the review period, from 34.2% 
in 2012 to 45% in 2015. The pace of growth accelerated in both 2014 and 2015, with debt levels 
rising by about 4 .5 percentage points of GDP in each of these years. Domestic debt represented 
around two thirds of the total, and external debt accounted for the other third. Despite the recent 
increase, the IMF expects the public debt to be held at sustainable levels, gi ven the moderate 
recovery of the economy in the medium term and the commitment that has been assumed to 
reduce the fiscal deficit. The IMF recommended an amendment to the Fiscal Responsibility Law to 
include an explicit ceiling on the NFPS deficit, corresp onding to a desirable expansion path for the 
public debt.17 According to the authorities, this suggestion was addressed through an amendment 
to the LFPRH, which provided that, as from 2015, the public sector borrowing requirement (PSBR) 
may not exceed 2.5% of GDP. In 2009 -2014, the PSBR averaged 4.2% of GDP.  
1.1.3   Monetary and exchange rate policy  
1.27.   The Bank of Mexico (Banxico) is responsible for formulating, implementing and supervising 
monetary policies. Article 28 of the Constitution defines the bank's prime obje ctive as maintaining 
stability in the purchasing power of the currency. Article 51 of the bank's Charter (Law on the 
Bank of Mexico) requires it to send a document to the Federal Government and Congress setting 
out the monetary policy to be pursued in the year ahead. A legal amendment introduced in 
January  2014 expanded that requirement, by also requiring the bank to submit a report to the 
Federal Government and Congress, no later than 45 business days after the end of each quarter, 
on inflation, economic t rends, and the behaviour of the country's economic indicators in the 
                                                
16 IMF (2015), Press Release No.  15/519: IMF Executive Board Concludes 2015 Article IV Consultation 
with Mexico . Viewed at: http://www.imf.org/es/News/Articles/2015/09/14/01/49/pr15519 . 
17 IMF staff suggest that a fixed ceiling of 2.5% of GDP could be set for 2019 and beyond. IMF  (2015), 
IMF Country Report No.  15/313. Mexico 2015 Article IV Con sultation —Press Release; and  Staff Repor t. 
Viewed  at: http://www.imf.org/external/pubs/ft/scr/2015/cr15313.pdf . WT/TPR/S/35 2 • Mexico  
 
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  quarter in question, also covering monetary policy execution for the quarter and the bank's 
activities during the period.18 
1.28.   Since 2001, Banxico has been operating an inflation targeting sc heme, to provide a 
framework for its conduct of monetary policy. It has defined the permanent goal of attaining 
annual inflation of 3%, as measured by the national consumer price index (INPC), and holding it in 
a range of plus or minus one percentage point  around that level.19 
1.29.   To meet the inflation target, the bank uses monetary instruments such as the management 
of interest rates and open -market operations. The overnight interbank interest rate is the target 
variable used to attain the inflation target.20 
1.30.   During the review period, as many as three subperiods can clearly be identified in relation 
to the conduct of monetary policy. Throughout 2012 and in the first two months of the following 
year, the policy stance was broadly neutral, as the Board of Directors  of the Bank of Mexico kept 
the target interest rate at 4.5%. In March  2013, the rate was cut to 4%; and between the middle 
of that year and late 2015, monetary policy was expansionary, as the bank lowered the target rate 
on two further occasions in the la st four months of 2013, to a level of 3.5%, and once again in 
June 2014, to 3%. The rate remained at that level until December  2015 when a change of trend 
occurred, and the target rate was raised to 3.25%. Since then, monetary policy has been 
progressively  tightened, with three hikes in the target interest rate during the first nine months of 
2016, to reach a level of 4.75% in October.21 
1.31.   Reflecting the relatively expansionary policy in 2011 -2015, the monetary base grew at an 
annual average rate of 12.4%, and  the monetary aggregates M1 and M4 behaved in a similar way 
(Table 1.4).  
Table 1.4 Main monetary indicators, 2011 -2016 Q3  
 2011  2012  2013  2014  2015  2016  Q3a 
Monetary aggregates  
Monetary base (annual variati on, %)b 10.1 10.8 8.5 15.8 16.8 16.7 
M1 (annual variation, %)  13.6 9.5 10.3 14.5 16.4 14.2 
M4 (annual variation, %)  16.1 14.5 9.1 12.4 5.7 7.7 
Interest rates (period average)  
Target rate  4.5 4.5 4.0 3.2 3.0 3.8 
28-day Cetes (Treasury bill) rate  4.2 4.2 3.8 3.0 3.0 3.8 
28-day TIIE rate  (Interbank Equilibrium 
Interest Rate)  4.8 4.8 4.3 3.5 3.3 4.2 
20-year Treasury bond rate (constant 
maturity rate)  3.62 2.54 3.12 3.07 2.55 2.13 
Inflation (12 -month variation, end of period)  
Inflation target  3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 
National Consumer Price Index (INPC, 
end of period)  3.8 3.6 4.0 4.1 2.1 3.0 
National Consumer Price Index (INPC, 
annual average)  3.4 4.1 3.8 4.0 2.7 2.7 
National Producer Price Index (INPP, 
end of perio d) 5.7 1.5 1.7 3.7 4.2 6.2 
Exchange rate  
Exchange rate, end of period (Mex$/US$)  14.0 13.0 13.1 14.7 17.2 19.4 
Exchange rate, average (Mex$/US$)  12.4 13.2 12.8 13.3 15.9 18.3 
                                                
18 The amendment was published in the Official Journal of 10  January  2014. 
19 Bank of Mexico (2016), Quarterly Report, April -June 2016. Viewed at:  
http://www.banxico.org.mx/publicaciones -y-discursos/publicaciones/informes -periodicos/trimestral -
inflacion/indexpage001.html . 
20 Interest rate on interbank overnight funding operations.  
21 Bank of Mex ico economic information system.  Viewed at:  
http://www.banxico.org.mx/SieInternet/consultarDirectorioInternetAction.do?accion=consultarCuadroAnalitico
&idCuadro=CA51&sectorDescripcion=P recios&locale=es ; and Bank of Mexico (2016), Quarterly Report, 
April-June 2016. Viewed at:  http://www.banxico.org.m x/publicaciones -y-discursos/publicaciones/informes -
periodicos/trimestral -inflacion/indexpage001.html . WT/TPR/S/35 2 • Mexico  
 
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   2011  2012  2013  2014  2015  2016  Q3a 
Real effective exchange rate (1990=100)c 82.8 83.9 77.5 77.0 82.0 94.0 
Real effective exchange rate, annual 
variation (%)  1.5 1.3 -7.6 -0.7 6.5 16.0 
a Preliminary figures.  
b Monetary base consisting of banknotes and coins in circulation and current account deposits held by 
commercial banks at the Bank of Mexico.  
c Estimated on th e basis of the INPC with respect to a basket of 111 countries, weighted by each 
country's GDP.  
Source:  Statistical information from the Bank of Mexico, viewed at: http://www.banxico.org.mx/ ; Bank of 
Mexico (2016), Annual Report 2015, viewed at: http://www.banxico.org.mx/publicaciones -y-
discursos/publicaciones/infor mes-periodicos/anual/%7B2E95603A -807F-5308-402E-
1D0CD179C999%7D.pdf ; and online information from INEGI, viewed at: http://www.inegi.org.mx . 
1.32.   As noted above, the Bank of Mexico placed emphasis on the permanent inflati on target of 
3% during the review period22, but the INPC breached the target with end -period rises of 4% in 
2013 and 4.1% in the following year. Since 2015 however, inflation has eased, thanks partly to 
lower raw materials prices, plus the beneficial effect s of the structural reforms which led to lower 
prices on some widely used inputs — such as the rates charged for telecommunication services 
and the prices of certain energy products — and supported by an appreciating dollar. In 2015, the 
INPC was held belo w 3%, dropping to levels of 2.1% (end of period) and 2.7% (annual average) 
(Table 1.4). According to INEGI data published on the Bank of Mexico portal in 2016, the variation 
in the INPC was below the upper limit of the fluctuation band, recording annual av erage inflation of 
2.7% for the general index in September that year. Nonetheless, core inflation in the same period 
was slightly higher, around 3%, compared to a headline rate of 2%.23 This reflects the positive 
effect of fuel and food prices, which are th e most volatile components of the INPC.  
1.33.   The Bank of Mexico expects annual general inflation to rise gradually in the near future, and 
it envisages a level very close to 3% by the end of 2016 and a lower average for the year as a 
whole. It was also expectin g annual core inflation to rise gradually throughout 2016, to end the 
year close to 3%. For 2017, the bank anticipates that both the headline and core inflation rates 
will be around the permanent inflation target. Upside risks for inflation include: (i) a subsequent 
depreciation of the Mexican peso, which could affect inflation expectations and the behaviour of 
prices; and (ii) increases in the prices of agricultural products. Downside risks include: (i) further 
reductions in the prices of some widely used inputs, such as telecommunication services, as a 
consequence of the structural reforms; and (ii) economic activity continuing weaker than 
expected.24 
1.34.   Exchange -rate policy in Mexico is the responsibility of the Foreign Exchange Commission, 
consisting of offi cials from the Ministry of Finance and Public Credit and the Bank of Mexico. Since 
late 1994, Mexico has operated a flexible exchange -rate regime, in which the rate is freely 
determined by market forces alone.25 The Foreign Exchange Commission intervenes on  the market 
by holding dollar auctions in situations of volatility.  
1.1.4   Balance of payments  
1.35.   The current account of Mexico's balance of payments recorded a modest shortfall 
throughout 2011 -2015, and remained in deficit in the first half of 2016. The financial a ccount, in 
contrast, has posted large surpluses (Chart 1.1), enabling reserves to be accumulated throughout 
most of the period, except in 2015.  
                                                
22 Bank of Mexico (2016),  Press Release of  29 September  2016. Anuncio de Política Monetaria: La Junta 
de Gobierno del Banco de México ha decidido aumentar  en 50 puntos base el objetivo para la Tasa de Interés 
Interbancaria a un día a un nivel de 4.75% . Viewed at: http://www.banxico.org.mx/ informacion -para-la- 
prensa/comunicados/politica -monetaria/boletines/%7B6D1F08BB -D257 -6F47-5C57-389240925D55%7D.pdf . 
23 Online statistical data from the Bank of Mexico . Viewed at: http://www.banxico.org.mx/portal -
inflacion/index.htm . 
24 Bank of Mexico (2016), Quarterly Report, April -June 2016, Summary . Viewed at:  
http://www.banxico.org.mx/publicaciones -y-discursos/publicaciones/informes -periodicos/trimestral -
inflacion/indexpage001.html . 
25 Online data from the Bank of Mexico . Viewed at:  http://www.banxico.org.mx/ayuda/temas -mas-
consultados/politica -cambiaria.html . WT/TPR/S/35 2 • Mexico  
 
- 25 - 
 
  1.36.   The balance -of-payments current account deficit averaged US$24,175  million per year in 
2011-2015. In 2011 and 20 12, the deficit was held at US$13,985  million (1.2% of GDP) and 
US$16,957  million (1.4% of GDP), respectively; but in the ensuing years the gap widened to 
US$30,978  million in 2013 (2.5% of GDP) and to US$26,249  million (2.0% of GDP) in the 
following year,  owing to larger deficits in services trade and on the income account (Table 1.5 and 
Chart 1.1). Broadly speaking, in addition to this and the deterioration in the oil balance, a 
narrowing of the transfers surplus (remittances) contributed to a worsening c urrent account 
deficit, particularly between 2011 and 2013. The level of remittances has been rising again since 
2014, however, and its upward trend continued in 2016.  
1.37.   In 2015, the merchandise trade balance posted a deficit of US$14,609  million (1.3% of 
GDP). The current account deficit amounted to US$32,707  million (2.9% of GDP). The change in 
the current account balance between 2014 and 2015 is mainly explained by the deterioration in 
the oil balance. Excluding oil, the current account recorded a deficit of 2% of GDP in 2015, similar 
to the year -earlier result.26 
Chart 1.1 Current account and financial account of the balance of payments, 
2011 -2016  (Q2)  
-40,000-20,000020,00040,00060,000
2011 2012 2013 2014 2015 2016 (Q2)US$ million
Current accountFinancial account
 
Source:  Bank of Mexico.  
Table 1.5 Balance of payments, 2011 -2016 (Q2)  
(US$ million)  
 2011  2012  2013  2014  2015a 2016  
(Q2)a 
Current account (% of GDP)  -1.2 -1.4 -2.5 -2.0 -2.9 -3.0 
Current account  -13,985  -16,957  -30,978  -26,249  -32,707  -15,449  
Credits  399,306  423,510 434,891  454,080  437,309  207,979  
Goods and services  365,586  387,587  400,923  418,735  403,936  191,167  
Goods  350,004  371,442  380,729  397,650  381,049  179,001  
General merchandise  349,433  370,770  380,015  396,912  380,623  178,831  
Goods procured in ports by carriers  571 672 714 738 426 170 
Services  15,582  16,146  20,194  21,086  22,886  12,166  
Tourism  10,006  10,766  11,854  14,320  15,826  9,071  
Short -stay visitors  1,862  1,973  2,095  1,888  1,908  992 
Miscellaneous transport  1,037  961 801 866 1,428  696 
Other  2,676  2,445  5,444  4,011  3,724  1,407  
Income  10,569  13,154  11,320  11,319  8,168  3,448  
Interest  3,475  2,671  2,391  2,309  2,470  1,300  
Other  7,094  10,483  8,929  9,010  5,698  2,149  
Transfers  23,152  22,768  22,649  24,026  25,206  13,364  
Family remittances  22,803  22,438  22,303  23,647  24,785  13,156  
                                                
26 Bank of Mexico (2016), Quarterly Report, April -June 2016. Summary . Viewed at:  
http://www.banxico.org.mx/publicaciones -y-discursos/publicaciones/informes -periodicos/trimestral -
inflacion/indexpage001.html . WT/TPR/S/35 2 • Mexico  
 
- 26 - 
 
   2011  2012  2013  2014  2015a 2016  
(Q2)a 
Other  349 330 346 379 421 207 
Debits  413,291  440,467  465,870  480,329  470,016  223,428  
Goods and services  381,584  401,301  412,815  433,977  427,629  201,061  
Goods  351,209  371,151  381,638  400,440  395,573  186,081  
General merchandis e 350,843  370,752  381,210  399,977  395,232  185,947  
Goods procured in ports by carriers  366 399 428 462 341 134 
Services  30,375  30,150  31,177  33,537  32,056  14,980  
Freight and insurance  10,225  9,726  9,755  11,604  10,048  4,953  
Tourism  5,014  5,549  6,025  6,611 7,026  3,138  
Short -stay visitors  2,818  2,900  3,097  2,995  3,072  1,543  
Miscellaneous transport  2,524  3,053  3,664  3,815  3,565  1,590  
Commissions  452 272 228 326 302 83 
Other  9,342  8,650  8,407  8,186  8,043  3,673  
Income  31,529  38,957  52,059  45,241  41,481  22,003  
Repatriated earnings  3,695  8,629  11,908  4,374  5,390  2,459  
Reinvested earnings  10,015  9,869  16,725  15,166  10,228  6,263  
Interest  17,819  20,458  23,426  25,701  25,864  13,280  
Public sector  9,557  11,728  13,264  13,775  13,402  6,884  
Private sector  8,262  8,730 10,162  11,926  12,461  6,396  
Transfers  178 209 995 1,111  905 365 
Financial account  53,420  55,132  68,895  60,144  32,629  15,819  
Foreign direct investment  11,916  -1,922  33,764  19,485  19,930  11,082  
In Mexico  24,552  20,548  46,903  26,948  32,056  14,385  
Abroad -12,636  -22,470  -13,138  -7,463  -12,126  -3,303  
Portfolio investment  47,836  73,348  49,032  46,345  27,972  7,370  
Liabilities  42,512  81,842  51,119  47,079  20,377  7,572  
Public sector  36,975  56,869  33,156  36,019  16,923  2,647  
Securities issued abroad  5,326  10,226  11,184  12,956  15,663  14,015  
Money market  31,650  46,643  21,973  23,063  1,260  -11,368  
Private sector  5,537  24,973  17,963  11,060  3,454  4,924  
Securities issued abroad  12,101  15,099  18,905  6,227  -147 1,165  
Equity market and money market  -6,564  9,873  -942 4,833  3,601  3,759  
PIDIREGAS  0 0 0 0 0 0 
Assets  5,324  -8,494  -2,086  -734 7,596  -201 
Other investment  -6,332  -16,295  -13,901  -5,686  -15,273  -2,633  
Liabilities  -2,659  -10,021  13,378  15,224  -2,421  10,348  
Public sector  302 -1,432  -2,553  3,133  320 2,737  
Development banks  -283 398 426 870 -651 -465 
Bank of Mexico  0 0 0 0 0 0 
Non-bank sector  585 -1,830  -2,980  2,263  971 3,202  
Private sector  -2,961  -8,589  15,931  12,091  -2,741  7,611  
Commercial banks  -2,931  -5,856  13,811  6,206  -3,208  6,908  
Non-bank secto r -29 -2,733  2,120  5,885  467 703 
PIDIREGAS  0 0 0 0 0 0 
Assets  -3,674  -6,274  -27,279  -20,910  -12,853  -12,981  
Errors and omissions  -11,255  -20,651  -20,128  -17,566  -15,589  -1,371  
Variation in gross international 
reserves  28,621  17,841  13,150  15,482  -18,08 5 1,233  
Adjustments for revaluation  -441 -317 4,639  847 2,418  -2,234  
Balance of goods and services  -15,998  -13,713  -11,893  -15,241  -23,694  -9,894  
Balance of goods  -1,205  291 -909 -2,790  -14,524  -7,080  
Balance of services  -14,793  -14,005  -10,983  -12,45 1 -9,170  -2,814  
Balance of income  -20,960  -25,802  -40,739  -33,922  -33,314  -18,554  
a Preliminary figures.  
Note:  The subtotals may not agree with the total owing to rounding errors.  
Source:  Bank of Mexico.  
1.38.   The surplus on the financial account of the balanc e of payments grew considerably during 
the review period, largely reflecting increases in foreign direct investment (FDI) and portfolio 
investment. The largest surplus was recorded in 2013, at US$68,895  million, but in 2011, 2012 
and 2014 the surplus also remained above US$50  billion. This trend was reversed as from 2015, 
when the financial surplus narrowed sharply to US$32,629  million, 46% smaller than in the 
previous year, owing to the reduction in portfolio investment mainly in short -term instruments 
(Cetes), whereas the longer -term instruments (bonds) have continued to grow. This downward 
trend continued in the first half of 2016.  WT/TPR/S/35 2 • Mexico  
 
- 27 - 
 
  1.39.   The authorities are forecasting deficits on the trade and current accounts in 2016, similar to 
those of the previous year (1. 5% and 3.1% of GDP, respectively). For 2017, the corresponding 
deficits are forecast at 1.4% and 3.2%.27 
1.2  Trend of trade and investment flows  
1.2.1   Merchandise trade  
1.40.   The growth of merchandise trade slowed during the review period. Between 2012 and 2015, 
exports gr ew by just 2.7% in dollar terms (Chart 1.2 and Table  A1.1), reflecting the drop in oil 
exports in particular, while imports expanded by just 6.6% (Table  A1.2).28 Merchandise exports in 
2015 totalled US$380,623  million, and imports came in at US$395,232  million. Figures for the first 
half of 2016 show merchandise exports at US$178,831  million, and imports at US$185,947  million.  
1.2.1.1   Composition of merchandise trade  
1.41.   Mexico's exports are dominated by manufactures, which represented 85% of the total in 
2015, while ag ricultural products accounted for less than 8%, and oil products and those of the 
extractive industries, 7.2% (Chart 1.2). The latter percentage stands in contrast to the proportion 
recorded at the start of the review period, because in 2012, oil and other  extractive industry 
products generated 15.5% of total exports. The change mainly reflects the fall in the value of oil 
exports in the wake of lower oil prices.  
1.42.   The leading manufacturing exports continue to be electrical machinery and appliances, and 
transport equipment, which jointly represented 57.6% of total exports in 2015. Exports of 
electrical machinery, appliances and equipment account for 20.6% of the total, with products for 
the automotive industry representing 21.1% (Table  A1.1).  
1.43.   The maquila indus try continues to be very important for Mexico's foreign trade, since almost 
three quarters of the country's exports (74.6%) benefited from this regime in 2015. The 
composition of maquila exports is biased towards manufactures, particularly electrical machi nery 
and appliances, and transport equipment, which jointly accounted for 77.6% of maquila exports in 
that year (Table A1.2 and Chart 1.3).  
1.44.   Imports and exports have similar structures. The main import products are electrical 
machinery and appliances, along  with transport equipment (47.4% of total imports), particularly 
electrical machinery, appliances and equipment (21.5%), and products for the automotive industry 
(9%) (Table A1.3 and Chart 1.2).  
                                                
27 Idem.  
28 The authori ties do not consider that Mexico is suffering from a loss of competitiveness, because the 
slowdown partly reflects the weakness of global growth. They point out that Mexico's share in United States 
imports increased during the review period, while its expo rts to the rest of the world did not lose market share. 
Moreover, although oil exports suffered a very powerful shock for reasons unrelated to Mexico, the country's 
manufactured exports trended positively between 2012 and 2014.  WT/TPR/S/35 2 • Mexico  
 
- 28 - 
 
  Chart 1.2 Merc handise trade by main HS Section, 2012 and 2015  
2012 2015
(a)    Total exports
Total: US$370,847 million
(b)    Total imports
Total: US$370,752 millon Total: US$395,232 millonTotal: US$380,772 millonInstruments
3.2%Mineral products 
15.5% Miscellaneous 
manufactured 
articles
2.6%Other
14.3%Vegetable 
products
2.8%
Base metals 
4.5%Plastics
2.7%Other
13.2%
Mineral 
products
9.4%Instruments
4.0%Plastics
2.9%
Textiles
2.5%Instruments
3.3%Chemical 
products
7.8%
Plastics
7.1%
Electrical 
machines 
and 
apparatus
37.3%Other
14.7%
Textiles
2.7%Mineral 
products
7.0% Chemical 
products
7.1%
Plastics
7.3%
Base metals 
8.3%
Electrical 
machines 
and 
apparatus
38.7%Other
15.1%
Base metals 
8.7%Transport 
equipment
9.2%Instruments
3.9%
Transport 
equipment
9.9%Electrical machines 
and apparatus
34.7%Electrical 
machines and 
apparatus
36.8%Transport 
equipment
19.7%Transport 
equipment
25.0%Vegetable 
products
3.4%Mineral products
7.2%
Base metals 
4.1%Miscellaneous 
manufactured 
articles
3.4%
 
 
Source:  WTO Secretariat estimates, based on data provided by the authorities.  
1.45.   Imports absorbed by the maquila industry for processing and subsequent re -export, or else 
to be incorporated as inputs or parts , represented 51.1% of total Mexican imports in 2015 
(Table  A1.4 and Chart 1.3).  WT/TPR/S/35 2 • Mexico  
 
- 29 - 
 
  Chart 1.3 Trade in goods for processing (maquila) by HS Section, 2012 and 2015  
2012 2015
(a)    Exports
Total: US$243,793 millon
(b)    Imports
Total: US$183,818 millon Total: US$202,177 millonTotal: US$283,905 millonBase 
metals
3.5%
Electrical 
machines and 
apparatus
48.2%Other
11.3%
Miscellaneous 
manufactured 
articles
3.6%
Plastics
7.2%Other 
10.1%
Transport 
equipment
28.7%Miscellaneous 
manufactured 
articles
4.0%Base metals 
3.0%
Electrical 
machines and 
apparatus
45.4%
Transport 
equipment
32.2%Instruments
5.2%
Base metals 
10.4%
Transport 
equipment
13.6%
Electrical 
machines 
and 
apparatus
50.1%Other 
14.5%Plastics
7.3%
Transport 
equipment
14.1%Base metals 
9.2%
Electrical 
machines 
and 
apparatus
49.7%Other
14.5%Instruments
4.7%
Instruments
4.2%Instruments
5.2%
 
Source:  WTO Secretariat estimates, based on dat a provided by the authorities.  
1.2.1.2   Direction of merchandise trade  
1.46.   Mexico's export markets remain highly concentrated, with its main trading partner, the 
United States, increasing its share of total exports from 77.7% in 2012 to 81.2% in 2015. Much of WT/TPR/S/35 2 • Mexico  
 
- 30 - 
 
  this trad e is intra -industry, or else corresponds to linkages within global value chains, reflecting 
the heavy presence of assembly industries (Chart 1.4).29 
Chart 1.4 Merchandise trade by trading partner, 2012 and 2015  
2012 2015
(a)    Total exports 
Total: US$370,847 millon
(b)    Total imports
Total: US$370,752 millon Total: US$395,232 millonTotal: US$380,772 millonCanada
2.9%Other
0.7%
United 
States
77.7%Canada
2.8%Other America
4.6%
Brazil
1.5%
Canada
2.7%America
89.8%
United 
States
81.2%Other America
3.9%Other
0.6%Asia
4.2%
America
88.3%Asia
4.7%
United 
States
50.1%
Other 
America
3.8%Japan
4.8%
China
15.4%Other 
Asia
10.4%Other
1.3%
United 
States
47.4%
Other 
America
3.1%China
17.7%Other 
Asia
12.2%Other
1.0%
America
56.6%America
53.0%
Europe
11.6%Europe
11.7%Asia
30.5%Asia
34.3%Japan
4.4%Europe
5.4%Europe
6.3%
Canada
2.5%Colombia
1.5%Colombia
1.0%
Brazil
1.0%
 
Source:  WTO Secretariat estimates, based on data provided by the authorities.  
1.47.   The second largest export market on the American continent is Canada, which received 
2.8% of Mexico's total exports in 2015, followed by Brazil and Colombia, which absorbed 1%  each. 
                                                
29 A recent OECD study shows that imported components represented 32% of the gross value of 
Mexican exports in 2011. Cadestin, C., Gourson, J.,  and Kowalski, P. (2016),  Participation in Global Value 
Chains in Latin America: Implications for Trade and Trade -Related Policy , OECD Trade P olicy Papers, No. 192, 
Publishing Paris . Viewed at: http://www.oecd -ilibrary.org/docserver/d ownload/5jlpq80ts8f2 -
en.pdf?expires=1484736750&id=id&accname=guest&checksum=2456CDE3BCFA67F8C63274BE5BC4656E . WT/TPR/S/35 2 • Mexico  
 
- 31 - 
 
  The remainder of Mexico's exports are sent mainly to China (1.3%), followed by Germany and 
Spain, with 0.9% each (Tables A1.5 and A1.6).  
1.48.    The United States are also the main source of Mexico's imports, providing 47.4% of the 
total in 2015. Imports f rom Asia represented 34.3% of the total, with China accounting for 17.7%, 
followed by Japan with 4.4% and the Republic of Korea with 3.6%. The European Union was also 
an important source of Mexican imports, accounting for 11.1% of the total in 2015, mainly  from 
Germany (3.5%) and Italy (1.3%) (Table A1.6 and Chart 1.4).  
1.2.2   Trade in services  
1.49.   Mexico's services trade is in deficit, owing mainly to shortfalls in transport and insurance, 
although all of the main categories show negative balances, except for travel.  The overall services 
trade deficit was US$14,005  million in 2012 and narrowed to US$10,983  million in 2013, before 
widening again to US$12,451  million in 2014. Preliminary figures suggest a smaller deficit of 
US$9,170  million for 2015 (Table 1.6), thanks mainly to increased earnings from travel services 
and lower transport expenses.  
Table 1.6 Trade in services, 2011 -2016 (Q2)  
(US$ million)  
 2011  2012  2013  2014  2015a 2016 
(Q2)a 
Exports  15,582  16,146  20,194  21,086 22,886  12,166  
Transport  1,037  961 801 866 1,428  696 
Travel -related services  11,869  12,739  13,949  16,208  17,734  10,063  
Communication services  237 255 197 184 159 54 
Insurance services  2,262  2,015  2,793  3,554  3,171  1,273  
Financial services  0 0 0 0 0 0 
Royalties and licence fees  97 96 2,373  194 308 80 
Other services  81 80 80 80 86 0 
Imports  30,375  30,150  31,177  33,537  32,056  14,980  
Transport  12,139  12,084  12,704  14,676  12,814  6,117  
Travel -related services  7,832  8,449  9,122  9,606  10,098  4,681  
Communication services  112 185 160 147 157 64 
Insurance services  4,086  3,848  4,835  4,220  4,339  2,335  
Financial services  452 272 228 326 302 83 
Royalties and licence fees  774 562 524 562 873 303 
Other services  4,978  4,751  3,604  4,000  3,473  1,397  
Balance o f services  -14,793  -14,005  -10,983  -12,451  -9,170  -2,814  
a Preliminary figures.  
Source:  Data provided by the Mexican authorities.  
1.50.   The main services exports remain those related to travel, which on average accounted for 
76% of services exported in 2012 -2015, followed by insurance (14.3%) and transport (5.1%). The 
leading imports of services were transport, representing an average of 41% of the total, followed 
by travel -related services (29.4%) and insurance (13.6%).  
1.2.3   Foreign direct investment  
1.51.   Foreign direct investment (FDI) flows were above US$20  billion in 2011 and 2012 before 
doubling to US$47,514  million in 2013, driven mainly by major investments in manufacturing 
industry, sourced mainly from the United States and Belgium. The FDI flow was still above 
US$20 billion in the following year (US$27,410  million), before rising again to US$32,864  million in 
2015. In the first nine months of 2016, the FDI flow amounted to US$19,773  million (Tables 1.7 
and 1.8).  
1.52.   The main FDI -recipient sectors in 2011 -2015 were the manufacturing industries, which 
absorbed an average of 54.4% of all FDI flows, followed by mining (8.5%) and commerce (7.7%).  WT/TPR/S/35 2 • Mexico  
 
- 32 - 
 
  Table 1.7 Foreign direct investment by activity, 2011 -2016 (Q3)  
(US$ million)  
Sector 2011  2012  2013  2014  2015  2016  
(Q3)  
Agriculture, forestry, fishing and hunting  127 145 208 169 163 83 
Mining  861 3,072  5,568  2,497  1,069  835 
Utilities  -29 1,157  1,003  624 746 897 
Construction  1,548  1,678  1,031  1,019  2,326  761 
Manufacturing  10,947  9,143  30,692  16,576  16,088  12,102  
Trade  3,321  2,670  1,530  1,959  2,372  566 
Transport, postal and warehousing services  393 1,330  1,482  1,673  2,884  1,180  
Information in mass media  1,198  1,185  2,679  -4,132  2,905  185 
Financial and insurance services  2,701  -2,489  -254 4,883  2,628  2,377  
Real estate, rental and leasing of movable 
and intangible property  873 771 569 517 296 179 
Professional, scientific and technical services  800 771 920 395 403 82 
Business support and waste management 
and remediation services  739 248 545 194 206 47 
Educational services  12 9 15 4 15 0 
Health and social services  23 43 50 -14 13 16 
Leisure, cultural, sporting and other 
recreational services  109 5 29 105 118 43 
Hotel and restaurant services  1,019  1,282  1,388  935 634 413 
Other services except public administration  33 25 60 2 0 6 
Total  24,677  21,045  47,514  27,410  32,864  19,773  
Source:  Ministry of the Economy.  
1.53.   The originators of FDI flows into Mexico continue to be led by the United States, which 
accounted for an average of 41 .5% of the total in 2011 -2015, followed by Belgium (10.2%, owing 
mainly to a single large -scale investment in 2013), and the Netherlands (8%).  
Table 1.8 Foreign direct investment by country of origin, 2011 -2016 (Q3)  
(US$ million)  
 2011  2012  2013  2014  2015  2016  
(Q3)  
United States  12,693  10,164  14,980  8,878  17,051  7,060  
Spain  3,693  -400 329 4,433  3,407  2,605  
Japan  929 1,829  1,961  1,404  1,660  1,104  
Germany  561 994 1,693  1,689  1,451  1,745  
Canada  1,474  1,838  4,479 3,021  1,190  1,267  
Brazil  297 436 110 595 1,119  713 
France  326 532 318 1,085  718 527 
Netherlands  2,596  1,640  5,444  1,712  795 362 
Korea, Republic of  100 129 425 513 754 677 
Australia  22 24 59 19 693 50 
United Kingdom  -1,036  512 1,296  258 586 53 
Italy 115 254 -742 180 722 576 
Switzerland  1,217  299 320 413 323 295 
Belgium  179 21 13,254  1,292  867 201 
Luxembourg  142 787 1,868  800 254 11 
Others  1,367  1,986  1,720  1,116  1,275  2,528  
Total  24,677  21,045  47,514  27,410  32,864  19,773  
Source:  Ministry of the Economy.  
 
 WT/TPR/S/35 2 • Mexico  
 
- 33 - 
 
  2  TRADE AND INVESTMENT REGIME  
2.1  General legal framework  
2.1.  Mexico is a Federal Republic governed by three powers of State: the Executive, the 
Legislature and the Judiciary.1 It comprises 31 states and Mexico City.2 
2.2.  The President of the United Mexi can States (hereinafter, Mexico) serves as both Head of 
Government and Head of State and is elected by universal suffrage every six years for a single, 
non-renewable term. The President's powers include directing foreign policy and concluding as well 
as de nouncing, suspending and amending international treaties and issuing interpretative 
statements thereon, subject to Senate approval. The President is also empowered to authorize the 
operation of all kinds of ports and to establish maritime and border custom s offices.3 
2.3.  The Legislature consists of a two -chamber Congress. The Chamber of Deputies comprises 
500 deputies elected every three years, and the Senate 128 senators elected every six years.4 The 
powers of the Congress include the following: issuing rules to determine the relative value of 
foreign currency; setting taxes on foreign trade and on public services operated under concessions 
or directly by the Federation; and enacting laws to promote Mexican investment, as well as 
regulating foreign investment a nd technology transfer.5 The Senate for its part holds exclusive 
authority to examine the Federal Executive's foreign policy and approve international treaties 
signed by it.6 Under the Law on the Approval of International Economic Treaties of 2004, the 
Senate is empowered to request information from agencies of the Federal Government on the 
negotiation and conclusion of international treaties relating to trade and other economic issues. 
According to this Law, for a treaty to be approved, information must be  submitted to the Senate 
regarding the administrative and legislative measures needed for its implementation, and an 
explanation must be given as to the extent to which the treaty serves the country's interests.  
2.4.  The Judiciary consists of the National Supre me Court of Justice, the Electoral Tribunal of the 
Federal Judiciary, collegiate and unitary circuit courts, and district courts.7 The Supreme Court 
consists of 11 judges elected by a two -thirds majority of the Senate from a shortlist submitted by 
the Pres ident of the Republic.8 
2.5.  Pursuant to the Political Constitution of the United Mexican States (hereinafter referred to as 
"the Constitution"), the power to initiate laws or decrees lies with the President of the Republic, 
congressional deputies and senators,  the legislatures of the states, and citizens representing at 
least 0.13% of the nominal electoral roll. The legislative law -making process can be divided into 
three stages, which have not changed substantially since 2012 (Box 2.1).  
Box 2.1 Legislative procedures  
The first stage (initiative) is the submission of the draft to either of the two chambers of Congress, unless the 
draft concerns loans, contributions and taxes, in which case it must be initiated in the Chamber of Deputies.  
In the second stage (discussion and approval), the chamber that receives the draft becomes the chamber of 
origin, while the other becomes the review chamber by default. If a draft is approved in the chamber of origin, 
it is referred t o the review chamber. Three situations may arise:  
a. the review chamber approves the draft, thereby launching the third stage of legislative procedure;  
b. the review chamber rejects the draft in its entirety, returning it to the originating chamber together 
with the observations it deems appropriate, so that it can be re -examined. If the chamber of origin 
approves it by an absolute majority of the members present, it returns the draft to the review 
chamber, which may approve it, thereby triggering the third stage  of the procedure, or reject it, in 
which case the initiative may not be resubmitted during the same congressional session;  
                                                
1 Article 49 of the Constitution.  
2 Decree declaring the amendment and repeal of various provisions of the Political Constitution of the 
United M exican States regarding policy reform in Mexico City, published in the Official Journal of 
29 January  2016.  
3 Article 89 of the Constitution.  
4 Ibid., Articles 51, 52 and 56.  
5 Ibid., Article 73.  
6 Ibid., Article 76.  
7 Ibid., Article 94.  
8 Ibid., Article 9 6. WT/TPR/S/35 2 • Mexico  
 
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  c. the review chamber partially rejects the draft, amends or supplements it, and the chamber of origin 
must examine only the part that has been rejected or amended. If it is approved by an absolute 
majority of the members of the chamber, the legislative procedure moves to the third phase; 
should the chamber of origin reject the amendments by a majority of votes, the draft returns to the 
review chamber for examination of the reasons given by the chamber of origin. If the changes or 
additions introduced in the second revision are rejected by an absolute majority in the review 
chamber, the third stage of the legislative procedure begins only in respect of the part of the draft 
approved by both chambers.  
In the third phase, the Presidents of both chambers sign the approved draft law or decree and forward it to the 
President of the Republic, who may approve and enact the law or formulate object ions to it. In the latter event, 
the draft is returned to the chamber of origin for reconsideration.  
Source:  Legislative procedure. Viewed at: http://www.diputados.gob.mx/bibl iot/publica/prosparl/iproce.htm . 
2.6.  The legal system has not changed substantially since the preceding review. Under the 
Constitution, international treaties signed by the President and ratified by the Senate form part of 
the country's domestic laws and ther efore do not require any additional legislative action for them 
to be enforced or invoked before the country's courts. The Constitution is the highest ranking 
instrument in the legal hierarchy, followed by international treaties which, as ruled by the 
Supreme Court, are ranked above Federal and local laws.9 
2.2  Trade policy objectives and formulation  
2.7.  The foreign trade objectives set out in the National Development Plan for 2013 -2018, which 
is the Government's roadmap for taking Mexico to its full potential.10 As pertains to international 
trade (Mexico with global responsibility), the aim is to reaffirm Mexico's commitment to free trade, 
mobility of capital and integrated production; two strategies have b een formulated to this end: 
(1) furthering and stepping up t he policy of trade liberalization in order to boost Mexico's 
participation in the global economy, and (2) promoting Mexico's regional integration by 
establishing strategic economic partnerships and deepening existing ones. Emphasis is also placed 
on the im portance of strengthening Mexico's presence in regional and multilateral forums and 
bodies, including the WTO.  
2.8.  These goals and strategies are developed in the sectoral programme of the Ministry of the 
Economy (SE) for 2013 -2018 (the Innovative Development Programme), which is based on the 
National Development Plan. The SE is therefore responsible for formulating and implementing the 
measures needed to meet the trade -related aims of the National Development Plan.  
2.9.  There were no significant changes in respect of trade policy formulation during the review 
period. Under Article 89 of the Constitution, the President is empowered to direct foreign policy 
and to conclude international treaties.11 In addition, the Federal Executive has the authority to: 
impose, change  or abolish tariffs by means of decrees published in the Official Journal of the 
Federation (DOF); regulate, restrict or prohibit the export, import, movement or transit of goods, 
in circumstances deemed to constitute an emergency; conduct international tr ade negotiations 
through the SE; and coordinate, also through the Ministry, the participation of the departments 
and entities of the Federal Government and of state governments in foreign trade promotion 
activities, as well as the participation of the priv ate sector.12 
                                                
9 Judicial Seminar of the Federation, National Supreme Court of Justice, P.IX/2007, April  2007.  
10 National Development Plan 2013 -2018 of 20  May 2013. Viewed at: http://www.dof.gob.mx/nota_  
detalle.php?codigo=5299465&fecha=20/05/2013 . This instrument sets out the country's principal public policy 
objectives, the action needed to attain them and the indicators that will have to be used to measure the 
outcomes. Five spec ific national goals are set out (A Mexico at peace; An inclusive Mexico; A Mexico with 
quality education; A prosperous Mexico; and A Mexico with global responsibility). The Plan also includes three 
cross-cutting strategies for achieving the nation's target s (Democratizing productivity; Modern governance 
close to the people; Gender perspective).  
11 Article 89.X of the Constitution.  
12 Article 131 of the Constitution and Article 4 of the Foreign Trade Law of 27  July 1993 (amendment of 
21 December  2006).  WT/TPR/S/35 2 • Mexico  
 
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  2.10.   The SE remains the key government agency responsible for applying and interpreting the 
provisions of the Foreign Trade Law, as well as for framing and implementing trade policy.13 The 
SE collaborates with other ministries in discharging its fun ctions (Table 2.1).  
Table 2.1 Institutions involved in trade policy  
Ministries  Main functions  
The Economy 
(SE)  Study and propose tariff changes to the Federal Executive;  
 conduct safeguard investigations and i mpose the measures resulting from those 
investigations;  
 adopt non -tariff measures to regulate or restrict the export, import, movement or 
transit of goods or modify existing ones;  
 establish rules of origin;  
 grant licences and allocate export or import quot as; 
 formulate country -of-origin marking requirements;  
 conduct investigations into unfair international trade practices and determine the 
anti-dumping or countervailing duties resulting from those investigations;  
 coordinate international trade negotiations;  
 promote and encourage exports in coordination with the production sectors and 
public and private sector operators.  
Finance and 
Public Credit 
(SHCP)   Organize and direct customs and inspection services;  
 plan, coordinate, evaluate and monitor the banking sy stem;  
 set the criteria and overall amounts of fiscal incentives.  
Foreign Affairs   Conduct foreign policy, and hence be involved in any kind of treaty, agreement 
and convention to which Mexico may be party;  
 help promote Mexico's trade and tourism.  
Agricul ture, 
Livestock, Rural 
Development, 
Fisheries and 
Food  Establish programmes and actions designed to enhance the productivity and 
profitability of rural economic activities;  
 monitor compliance with and apply the regulations governing animal and plant 
health ; promote programmes and develop official animal and plant health 
regulations; grant certifications;  
 promote the development of industrial and commercial infrastructure for 
agricultural production, in collaboration with the SE;  
 in coordination with the SE,  promote human consumption of fishery products, 
ensure the supply and distribution of these products and of raw materials to the 
domestic industry.  
Environment 
and Natural 
Resources   Formulate and conduct national policy on natural resources;  
 establish off icial regulations on the sustainable use of natural resources;  
 propose the formulation of policies on international affairs and foreign trade;  
 together with the SHCP, help set the general criteria for establishing fiscal and 
financial incentives;  
 propose t o the SE the adoption of regulations or restrictions on imports or exports 
of natural resources.  
Tourism   Issue an opinion when foreign investment is involved in tourism development 
projects or in the establishment of tourism services.  
Health   Ensure the s anitary control of products and services and of their importation and 
exportation.  
Source:  Organic Law of the Federal Government of 29  December  1976 (amendment of 11  November  2014).  
2.11.   The Foreign Trade Commission (COCEX) must still be consulted by the depar tments and 
entities of the Federal Government on all export and import -related matters.14 The Commission 
periodically examines the foreign trade measures in force, ex officio  or at the request of interested 
business organizations, and recommends amendments where necessary. COCEX comprises 
representatives of the Ministries of Foreign Affairs, Finance, the Environment, the Economy, and 
Agriculture and Health, as well as of the Bank of Mexico and the Federal Economic Competition 
Commission.  
                                                
13 Article 5 of the Foreign Trade Law of 27  July 1993 (amendment of 21  December  2006).  
14 Ibid., Article 6. This Commission is responsible for issuing opinions on tariffs and tariff preferences, 
prohibitions of goods exports or imports, non -tariff measures, measure s to regulate or restrict traffic in transit; 
export or import quota allocation procedures; rules of origin; compliance with Mexican Official Standards by the 
customs authorities at the point of entry of goods; safeguard measures; customs measures; and tra de 
facilitation (Article 9 of the Regulations implementing the Foreign Trade Law of 30  December  1993 
(amendment of 22  May 2014)).  WT/TPR/S/35 2 • Mexico  
 
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  2.12.   The Joint Export Pro motion Commission (COMPEX), created in 1989,15 is still responsible for 
analysing and proposing export promotion strategies and mechanisms for collaboration between 
the public and private sectors in order to facilitate and diversify goods and services expor ts. This 
Commission is made up of representatives of various departments and entities of the Federal 
Government (such as the Ministries of Foreign Affairs, Finance, the Environment, Energy, the 
Economy, Agriculture and Health), as well as private -sector bo dies, and acts mainly as an 
electronic platform that enables Mexican exporters to raise any doubts they may have and to 
request information.  
2.13.   ProMexico is a government -controlled entity (attached to the SE) created in 2007 and is 
responsible for promoting f oreign direct investment and goods and services exports, as well as the 
internationalization of Mexican companies so as to contribute to the country's economic and social 
advancement. ProMexico maintains representative offices in Mexico and abroad, and thr ough 
them, endeavours to find markets for Mexican exporters.16 
2.3  International trade relations  
2.3.1   WTO  
2.14.   Mexico is a founding Member of the WTO. The Ministry of the Economy (SE), acting through 
the Permanent Mission of Mexico to the WTO, is responsible for represen ting the country before 
the Organization. This is the sixth review of Mexico's trade policy by the Trade Policy Review Body.  
2.15.   Mexico participates actively in the regular work of the WTO. It grants most -favoured -nation 
(MFN) treatment to all its trading part ners, whether or not WTO Members. Mexico submitted 
several notifications to the WTO during the period under review (Table A2.1).  
2.16.   As regards participation in the WTO plurilateral agreements, Mexico is not a party to the 
Agreement on Trade in Civil Aircraft or the Agreement on Government Procurement, nor does it 
have observer status in the committees that administer those agreements. Mexico is not a party to 
the Information Technology Agreement (ITA) either. On 20  August  2015, Mexico notified the 
Council for Trade in Services of the granting of preferential treatment for services and service 
suppliers of least developed countries, in accordance with the services waiver adopted by the 
Eighth WTO Ministerial Conference.17 
2.17.   In the Doha Development Agenda (DDA) nego tiations, Mexico recognizes the WTO as the 
primary global forum for trade and supports the Organization's negotiating role. Mexico has 
participated actively in the quest for agreements, being especially interested in the elimination of 
domestic support in agriculture. It acknowledges that the international trading environment 
continues to evolve, with developments such as the emergence of global value chains and the 
increased use of digital technologies, and has therefore favoured the discussion of these to pics in 
the WTO framework.18 
2.18.   On 12  May 2014 Mexico notified the Preparatory Committee on Trade Facilitation of the 
inclusion in Category A of all the provisions of Section I of the WTO Agreement on Trade 
Facilitation.19 Mexico deposited the instrument of rat ification of the Agreement on 26  July 2016.20 
2.19.   Since the preceding trade policy review, Mexico has not been a defendant in any dispute, 
but has been a complainant in two disputes and a third party in 11.21 
                                                
15 Article 7 of the Foreign Trade Law of 27  July 1993 (amendment of 21  December  2006).  
16 Decree establishing the public trust f und deemed to be a government -controlled entity called 
ProMexico, published in the Official Journal of 13  June 2007.  
17 WTO documents WT/L/847 of 17  December  2011, WT/L/918 of 7  December  2013 and S/C/N/821 of 
21 August  2015.  
18 In this regard, Mexico and the  other members of MIKTA (Indonesia, Republic of Korea, Turkey and 
Australia) jointly organized a workshop on e -commerce in July  2016.  
19 WTO document WT/PCTF/N/MEX/1 of 14  May 2014. See Article 14 (Categories of provisions) of the 
Trade Facilitation Agreeme nt (WT/L/940).  
20 Protocol Amending the Marrakesh Agreement Establishing the World Trade Organization (WT/L/940) 
of 28 November  2014).  WT/TPR/S/35 2 • Mexico  
 
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  2.3.2   Trade agreements  
2.20.   Mexico still staunchly defends the m ultilateral trading system. However, pursuant to the 
strategies set forth in the National Development Plan, Mexico has signed several regional 
agreements with a view to creating new commercial opportunities and diversifying trade. It 
currently has 12 free trade agreements (FTAs) with 46 countries and seven partial scope 
agreements in the framework of the Latin American Integration Association (LAIA) (Table 2.2).  
2.21.   Four new free trade agreements have entered into force since the previous review: the 
Pacific Al liance, and the agreements with Central America, Panama and Peru. In addition, the 
country completed the implementation of its free trade agreements with Japan and Uruguay during 
the review period.  
Table 2.2 Trade agreements signed by Mexico (in force), 2012 -2016  
Country/region  Date of 
entry into 
force  Coverage of the agreement  Notification to the WTO  
Year  Documents  
Free trade agreements  
 Panama  01.07.2015  Goods and services  2016 WT/REG374/N/1  
S/C/N/871  
 Pacific Alliance  01.05.2016  Goods and services  2016 WT/REG377/N/1  
S/C/N/864  
 Central America (FTA)  
 Guatemala  
 Costa Rica  
 Honduras  
 El Salvador  
 Nicaragua   
01.09.2013  
01.07.2013  
01.01.2013  
01.09.2012  
01.09.2012  Goods and services  2014 WT/REG349/N/Rev.1  
S/C/N/7 17/Rev.1  
 Peru (Trade Integration 
Agreement)  01.02.2012  Goods and services  2012 WT/REG308/N/1  
S/C/N/616  
 Japan (Economic 
Partnership Agreement)  01.04.2005  Goods and services  2005 WT/REG198/N/1  
S/C/N/328  
 Uruguay (FTA)  15.07.2004  Goods and services  2013 WT/REG345/N/1  
S/C/N/701  
 EFTA (Iceland, 
Liechtenstein, Norway and 
Switzerland) (FTA)  01.07.2001  Goods and services  2001 WT/REG126/N/1  
S/C/N/166  
 European Union (Economic 
Association Agreement)  01.07.2000  
01.10.2000  Goods  
Services  2000 
2002 WT/REG109/N/1  
S/C/N/192  
 Israel (FTA)  01.07.2000  Goods  2001 WT/REG124/N/1  
 Chile (FTA)  01.08.1999  Goods and services  2001 WT/REG125/N/1  
S/C/N/142  
 Colombia (FTA)  01.01.1995  Goods and services  2010 WT/REG289/N/1  
S/C/N/563  
 Canada and United  States 
(North American Free Trade  
Agreement, NAFTA)  01.01.1994  Goods  
Services  1993 
1995 L/7176  
S/C/N/563  
     Limited coverage agreements/Partial scope agreements  
 Plurinational State of Bolivia 
(AAP.CE No.  66) 07.06.2010  Goods    
 MERCOSUR (AAP.CE No.  55)   Goods: Automotive sector    
 Paraguay  
 Argentina, Brazil, Uruguay  01.01.2003     
 Brazil (AAP.CE No.  53) 02.05.2003  Goods    
 Cuba (AAP.CE No.  51) 28.02.2001  Goods    
 Paraguay (AAP.R No.  38) 01.07.1984  Goods    
 Ecuador (AAP.R No.  29) 14.12.1987  Goods    
 Argentina (AAP.CE No.  6)  01.01.198 7 Goods    
Other agreements  
 MERCOSUR (AAP.CE No.  54) 05.01.2006  Framework agreement    
 LAIA (Latin American 
Integration Association)  18.03.1981  Goods, preferences and 
preferential framework  1982 L/5342 and 
WT/COMTD/72  
Source:  WTO Secretariat.  
                                                                                                                                                  
21 The two disputes in which Mexico has participated as a complainant are: China – Measures Relating to 
the Production and Exportation of Apparel and Textile Products  (DS451) and Argentina – Measures Affecting 
the Importation of Goods  (DS446). No panel has yet been established in either case.  WT/TPR/S/35 2 • Mexico  
 
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  2.22.   In Septembe r 2016 Mexico was negotiating free trade agreements with Jordan, Paraguay 
and Turkey. There are also ongoing negotiations with Brazil, the European Union and the European 
Free Trade Association (EFTA) with a view to deepening its existing agreements with t hese trading 
partners. During the review period the rules of origin in the FTAs with Colombia, Chile and EFTA 
were also updated so as to align them with amendments made to the Harmonized System in the 
WCO framework.22 
2.23.   The review period witnessed the entry i nto force (on 1  February  2012) of the Trade 
Integration Agreement between the Republic of Peru and the United Mexican States in 
replacement of LAIA Economic Complementarity Agreement No.  8, which had been force for both 
Parties since March  1987 though cove ring only 20% of bilateral trade between them and excluding 
services and investment. As pertains to merchandise trade, the Parties agreed to create a free 
trade area within a period of 11 years (i.e., in 2023). At the end of the transition period, 97.8% of  
Mexico's tariff lines will be duty free. The vast majority of the products that will remain dutiable at 
the end of the transition period (274 tariff lines in the case of Mexico) are agricultural, in the case 
of both Mexico23 and Peru.24 For services, the ag reement uses a hybrid approach; market access 
commitments are based on a positive list of sectors, whereas a negative list is used in other cases. 
The agreement also includes provisions on intellectual property rights, safeguards, unfair 
international trad e practices, investment and dispute settlement. Under this agreement, the 
Parties commit to begin negotiations on government procurement, trade facilitation and customs 
cooperation one year after its entry into force.  
2.24.   The Free Trade Agreement between the U nited Mexican States and the Republic of Panama 
replaces the partial scope agreement that existed between the two countries. In respect of goods, 
a tariff reduction timetable is foreseen, consisting of several stages the longest of which being 
15 years. Th e agreement also includes provisions on trade facilitation and customs cooperation, 
trade defence, sanitary and phytosanitary measures and technical barriers to trade. On services, 
there are provisions governing cross -border trade in services, financial se rvices, 
telecommunications, and the temporary entry and stay of business persons. There are also 
chapters on investment, e -commerce, intellectual property and dispute settlement. The agreement 
also foresees the possibility of launching negotiations, at the  latest two years after its entry into 
force, on regulatory improvement, maritime services, government procurement, and cooperation 
and trade capacity building.  
2.25.   The Free Trade Agreement between Mexico and Central America also took effect during the 
review period, thereby revoking the Free Trade Agreement between Mexico and Costa Rica, 
the Free Trade Agreement between Mexico and El Salvador, Guatemala and Honduras 
(Northern  Triangle) and the Free Trade Agreement between Mexico and Nicaragua, as well as the 
annexes, appendices, protocols and decisions signed under those agreements.  
2.26.   The Agreement between Mexico and Central America covers goods and services and 
includes chapters on investment, government procurement and intellectual property. This 
agreement expa nds the coverage of goods by comparison with the earlier agreements. As regards 
tariffs, it encompasses products that were excluded from previous agreements between Mexico 
and the various Central American countries, such as automobiles, some dairy products , poultry 
sausages, marmalades and fruit pastes, cigars and cigarettes, tuna loins, mayonnaise and sugar, 
which receives special treatment. Furthermore, the purpose of the Agreement is to establish a 
common regulatory framework for trade in goods between t he six countries: common rules of 
origin are laid down and a single certificate of origin is introduced, provision is made for the 
establishment of a foreign trade single window and an economic operators scheme to facilitate 
trade and ensure customs contro l.25 As pertains to intellectual property, in addition to 
strengthening existing commitments, the agreement recognizes the appellations of origin and 
geographical indications protected in each country (in the case of Mexico for example, Tequila, 
Mezcal, Oli nalá and Talavera). For services, the agreement includes a chapter on 
                                                
22 Online information viewed at: 
http://cdn.presidencia.gob.mx/tercerinforme/3_IG_2015_PDF_270815.pdf . 
23 Products excluded by Mexico from tariff reduction include poultry meat, pig fat, dairy products, sugar, 
potatoes, coffee and used vehicles.  
24 WTO documen t WT/REG308/1/Rev.1 of 26  June 2014.  
25 WTO document WT/REG349/M/1 of 2  December  2015.  WT/TPR/S/35 2 • Mexico  
 
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  telecommunications that lays down rules for telecommunications service operators in 
each country.  
2.27.    On 5  October  2015, the countries participating in the Trans -Pacific Partnership (TPP) 
announced the end of the negotiations and the parties signed the agreement on 
4 February  2016.26 This agreement contains 30 chapters that cover trade in goods (including 
customs cooperation and trade facilitation; sanitary and phytosanitary measures; technic al 
barriers to trade; and trade remedies), trade in services, government procurement, intellectual 
property rights, the environment and SMEs. It also encompasses e -commerce and other issues 
pertaining to the Internet and the digital economy. The TPP will t ake effect once it has been 
ratified by all the countries in accordance with their internal procedures, within two years of its 
signature. Failing this, the TPP will enter into force in 2018, when it has been ratified by at least 
six original signatories t hat together account for at least 85% of the 2013 GDP of the 
original  signatories.  
2.28.   The Pacific Alliance is a regional integration process involving Chile, Colombia, Mexico and 
Peru, launched on 28  April 2011 with the Lima Declaration. The aims of the proce ss are to move 
progressively toward the free movement of goods, services, capital  and people; foster higher 
levels of growth, development and competitiveness for the economies of the Parties, and promote 
economic and trade integration, especially with the Asia Pacific region.27 On 6 June 2012, during 
the Fourth Presidential Summit, the Framework Agreement was signed, legally establishing the 
Pacific Alliance, laying its institutional foundations and defining its objectives.28 The Additional 
Protocol to the Pa cific Alliance Framework Agreement was signed on 10  February  2014, creating a 
free trade area that complements and enhances the free trade agreements in force between the 
States Parties to the Alliance, even though they all exist side by side. This Additio nal Protocol 
contains provisions on market access, rules of origin, technical barriers to trade, sanitary and 
phytosanitary measures, trade facilitation and customs cooperation, government procurement, 
cross-border trade in services and investment, telecom munications, e -commerce, financial 
services, maritime services and dispute settlement. On 14  December  2015 Mexico ratified the 
Additional Protocol to the Pacific Alliance Framework Agreement, which became effective on 
1 May 2016.29 Under the agreement, 92% of tariff lines were freed upon entry into force and the 
remaining 8% will be freed over a period of three to 17 years. The goal is that by 2030, almost all 
products traded between the parties to the agreement will be duty free (except  sugar).30 
2.29.   Mexico is a lso a member of the Asia -Pacific Economic Cooperation (APEC) forum. Pursuant 
to the 1994 Bogor Declaration, APEC economies made a voluntary commitment to achieving free 
and open trade and investment by 2020 (2010 in the case of the developed countries) by 
removing barriers to trade and investment and providing for the free movement of goods, services 
and capital between the economies of the region. In 2016, APEC conducted the second, two -part 
review of the Bogor Goals: (i) a comprehensive review of the regi on's progress, based on trade 
and investment outcomes, the evolution of indicators of trade liberalization and trade facilitation, 
and growth and development statistics; and (ii) updating the action plans of each economy. 
Previously, in November  2014, APEC  Ministers had adopted the "Beijing road map" and agreed to 
undertake a joint study in order to establish the Free Trade Area of the Asia -Pacific (FTAAP).  
2.3.3   Preferential trade arrangements  
2.30.   Under the Generalized System of Preferences (GSP), Mexico benefited d uring the 
review  period from the preferential market access schemes of Australia, Belarus, Canada31, Japan, 
Kazakhstan, New Zealand, the  Russian Federation and Turkey.32 
                                                
26 The countries participating in the TPP are: Australia, Brunei Darussalam, Canada, Chile, Japan, 
Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vi et Nam.  
27 Presidential statement on the Pacific Alliance, Lima (Peru), dated 28  April 2011, and Pacific Alliance 
Framework Agreement.  
28 See Article 3 of the Pacific Alliance Framework Agreement.  
29 Online information viewed at:  https://alianzapacifico.net . 
30 On 3 July 2015 an Amending Protocol was signed in order to include a chapter on regulatory 
improvement, an annex on cosmetics to the TBT Chapter and new provisions on e -commerce and 
telecommunications. This Am ending Protocol will take effect upon its approval by all participating countries.  
31 Canada excluded Mexico from its scheme of preferences effective 1  January 2015 (Canada Gazette, 
Part II, Vol. 147, No.  21 (2013)).  WT/TPR/S/35 2 • Mexico  
 
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  2.31.   Mexico is also a member of the Global System of Trade Preferences among Developing 
Count ries (GSTP), comprising 77 countries. This notwithstanding, Mexico gave no undertakings 
during the second and third GSTP negotiating rounds (1992 and 2004, respectively).33 
2.4  Foreign investment regime  
2.32.   Foreign direct investment (FDI) is one of the cornerstones  of the National Development Plan 
in that it is instrumental in attaining the goals laid out in the Plan. To that end and to increase 
investment flows and boost the country's competitiveness, during the review period Mexico 
effected a series of reforms to the foreign investment regime, mainly affecting telecommunications 
and broadcasting, as well as the financial and energy sectors.  
2.33.   The foreign investment regulatory framework consists primarily of Articles 25, 27, 28 and 
73 of the Constitution, and the Fore ign Investment Law (LIE) and its implementing Regulations.34 
Foreign investment is also governed by the Investment Promotion and Protection Agreements 
(IPPAs) and the chapters on investment in the international trade agreements signed by Mexico.  
2.34.   Administrat ively, the principal bodies tasked with regulating and managing foreign 
investment continue to be the National Foreign Investment Commission (CNIE), the 
Directorate -General of Foreign Investment (DGIE) and the National Foreign Investment Register 
(RNIE). T hey are all attached to the Ministry of the Economy (SE). Composed of several Ministries, 
the CNIE35 is chaired by the Minister of the Economy and is responsible for issuing foreign 
investment policy guidelines, designing mechanisms to promote investment in  Mexico and 
approving certain types of FDI, as well as the terms and conditions governing the participation of 
foreign investment in activities and acquisitions subject to specific regulation.36 The Commission 
must decide on the applications it receives wit hin 45 working days at the most, failing which the 
application is deemed to be approved.37 In considering applications, the CNIE must be mindful of 
several criteria, such as the impact on employment and worker training, the technological 
contribution, compl iance with environmental provisions and the contribution to enhancing the 
competitiveness of the country's production sector38, while specifically ensuring that these 
requirements do not distort international trade, except when national security must be pro tected.39 
The DGIE is responsible for handing down administrative decisions on foreign investment pursuant 
to the LIE, as well as for managing the RNIE.  
2.35.   During the review period, Mexico undertook a major reform of its telecommunications and 
broadcasting sec tor in order to boost its competitiveness so as to reduce prices and improve 
service quality. To that end, access to the sector for foreigners was improved as of 2014. The 
upshot is that FDI can now be as much as 100% in fixed telephony and satellite commu nications, 
which had previously been subject to a 49% ceiling. In the broadcasting sector, the reservation to 
Mexican nationals and to Mexican firms with a foreigners exclusion clause was eliminated. FDI of 
up to 49% is currently permitted (subject to the principle of reciprocity).40 
2.36.   In virtue of the financial sector reform, FDI may now be as much as 100% in insurance 
institutions, bonding institutions, currency exchange houses, general bonded warehouses, pension 
fund management firms, credit information com panies, securities rating institutions and insurance 
                                                                                                                                                  
32 UNCTAD (2015), Generalized System of P references List of Beneficiaries . Viewed at: 
http://unctad.org/en/PublicationsLibrary/itcdtsbmisc62rev6_en.pdf . 
33 Decree promulgating the Agreement on the Global System of Tra de Preferences among Developing 
Countries, adopted on 13  April 1988 (published in the Official Journal of 21  July 1989). 
34 Foreign Investment Law (published in the Official Journal of 27  December  1993 and amended several 
times during the review period, the  most recent being in 2015); and Regulations implementing the Foreign 
Investment Law and the National Foreign Investment Register (published in the Official Journal of 
8 September  1998).  
35 The CNIE comprises the Ministries of: the Interior; Foreign Affairs ; Finance and Public Credit; Social 
Development; the Environment and Natural Resources; Energy; the Economy; Communications and Transport; 
Labour and Social Welfare; and Tourism.  
36 Article 26 of the LIE.  
37 Ibid., Article 28.  
38 Ibid., Article 29.  
39 Ibid., Article 30.  
40 Decree issuing the Federal Telecommunications and Broadcasting Law and the Mexican Public 
Broadcasting System Law, and amending, supplementing and repealing certain provisions on 
telecommunications and broadcasting, published in the Official J ournal of 14  July 2014.  WT/TPR/S/35 2 • Mexico  
 
- 41 - 
 
  agents. Before the reform there had been a 49% ceiling on the share of FDI in these activities, 
which could be surpassed only in the case of credit information companies, securities rating 
institutions a nd insurance agents, with CNIE authorization.41 
2.37.   The energy sector reform is aimed, among other things, at encouraging investment in the 
sector so as to further the country's overall development. Basic petrochemicals and electricity 
generation and sale are t hus no longer regarded as strategic areas, in other words, they are no 
longer reserved exclusively to the State. Likewise, FDI may now be as much as 100% in the 
following activities: marketing of gasoline (petrol) and distribution of liquefied petroleum ga s, 
previously reserved to Mexican nationals and Mexican firms, with a foreigners exclusion clause; 
construction of pipelines to transport oil and its derivatives, as well as the drilling of oil and gas 
wells, which previously required a favourable decision  by the CN IE for FDI to be able to 
exceed  49%.  
2.38.   During the period under review, the CNIE issued a series of general resolutions designed to 
simplify both FDI registration formalities and statistical reporting requirements.42 Although 
permission is not genera lly required in order to invest, any foreign company investing in Mexico, 
and Mexican companies with foreign participation must register with the RNIE.43 Companies that 
do not comply with this obligation will be fined.44 
2.39.   In Mexico, foreign investment in area s where there are no restrictions receives national 
treatment, subject to the permanent residency requirement. Foreigners may therefore hold any 
proportion of the share capital of Mexican companies; acquire fixed assets; enter new fields of 
economic activi ty or manufacture new product lines; and open and operate establishments or 
relocate existing ones.45 
2.40.   There are three types of FDI restriction in Mexico. Some activities are reserved exclusively 
for the State, others are reserved exclusively for Mexicans (M exican natural persons and Mexican 
legal entities with a foreigners exclusion clause), and others still are subject to specific regulation, 
in other words, to a maximum FDI percentage, which in some cases may be exceeded with prior 
authorization from the C NIE. 
2.41.   After the reforms undertaken during the review period, the activities reserved exclusively to 
the State are currently the following: exploration for and extraction of oil and other hydrocarbons 
(although the State may sign contracts with State -owned p roduction enterprises and with private 
individuals); planning and control of the national electrical system as well as the public service of 
electricity transmission and distribution (in this case too, the State may enter into contracts with 
private indivi duals); nuclear power generation; radioactive minerals; telegraph, radio telegraph 
and postal services; issuing of banknotes; minting of coins; control, supervision and surveillance of 
ports, airports and heliports; and any other areas that may be expressl y reserved by the 
applicable legislation.46 
2.42.   Furthermore, certain activities are reserved exclusively to Mexicans or Mexican companies, 
with a foreigners exclusion clause. This clause, which is an integral part of a company's articles of 
association, stipula tes that the company may not admit as partners or shareholders, either directly 
or indirectly, foreign investors or firms that have a foreigners admission clause.47 These activities 
are: domestic land transportation of passengers, tourism and freight, exclu ding messenger and 
parcel services; development banking institutions; and professional and technical services 
expressly reserved by the applicable legislation. Since the previous review, this list has ceased to 
                                                
41 Decree amending, supplementing, and repealing various financial provisions and issuing the Law 
Regulating Financial Groups, published in the Official Journal of 10  January  2014.  
42 General Resolutions of the National Foreign Invest ment Commission (CNIE) currently in force. Viewed 
at: http://www.gob.mx/se/acciones -y-programas/competitividad -y-normatividad -inversion -extranjera -
directa?state=published . 
43 Online information viewed at: https://rnie.economia.gob.mx/RNIE/faces/inicio.xhtml . 
44 Article 38 of the LIE.  
45 Ibid., Article 4.  
46 Ibid., Article 5.  
47 Ibid., Articles 2 and 6.  WT/TPR/S/35 2 • Mexico  
 
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  include retail sale of gasoline (petrol) and distribution of liquefied petroleum gas, and broadcasting 
and other radio and television services other than cable television.48 
2.43.   Some activities and companies are subject to specific regulation, which means that FDI is 
limited to certain percentages that ma y not be exceeded directly or through trust funds, 
agreements or other mechanisms that grant control or provide for participation beyond the 
specified level.49 This notwithstanding, in some activities with an FDI ceiling of 49%, this limit may 
be surpassed subject to a favourable decision from the CNIE (Table 2.3). For example, during the 
period under review the CNIE issued favourable decisions allowing FDI to exceed the 49% limit in 
the case of certain shipping companies and airport concessionaire companies  (Section 4).  
Table 2.3 Economic activities and companies subject to specific regulation, 2016  
Activity/company  Maximum % 
of FDI  
Production cooperatives  10% 
Domestic air transport  
Air taxi services  
Specializ ed air transport  25% 
Manufacture and marketing of explosives, firearms, cartridges, munitions and fireworks 
(excluding the acquisition, preparation or use of explosives for industrial and mining activities)  
Printing and publication of newspapers for circu lation in Mexico only  
Series -T shares in companies that own agricultural, ranching or forestry landsa 
Fresh water, coastal, and exclusive economic zone fishing (excluding aquaculture)  
Integrated port administration  
Port pilot services for vessels carrying out inland navigation, under the terms of the respective 
law 
Shipping companies involved in the commercial exploitation of vessels engaged in inland 
navigation and cabotage (excluding tourist cruises, marine dredging activities, and floating 
structures for  the building, maintenance and operation of ports)  
Supply of fuel and lubricants for vessels, aircraft, and railroad equipment  
Broadcasting (this maximum percentage of foreign investment is subject to reciprocity in the 
investor's country or the country of  the economic operator that ultimately exercises direct or 
indirect control over the investor)  49% 
Port services for vessels engaged in inland navigation operations, such as towing, mooring and 
lighterage  
Shipping companies engaged in the operation of shi ps solely for high -seas traffic  
Concessionaires or permit -holders for aerodromes for public service  
Private education services, from pre -school to higher education levels  
Legal services  
Construction, operation and exploitation of railroads considered as a means of general 
communication, and the supply of public railway services  49% or more 
than 49% with 
prior CNIE 
approval  
a Series -T shares in companies owning agricultural, ranching, and forestry land are equal to the 
capital contribution in respect of agr icultural, ranching or forestry land or to the capital intended for 
the purchase of such land. Upon liquidation of the company, only the holders of such shares will be 
entitled to receive land as payment (Articles 126 and 127 of the Land Law).  
Source:  WTO Secretariat, on the basis of Article 7 of the Foreign Investment Law (Official Journal of 
27 December  1993, latest amendment of 18  December  2015).  
2.44.   Despite these restrictions, the LIE provides for the concept of "neutral investment", whereby 
foreigners may invest in sectors reserved for Mexicans or subject to specific regulation, without 
that participation being taken into account when determining the percentage of foreign investment 
in the share capital of the Mexican enterprise. This capitalization mechani sm allows 
Mexican  companies to issue shares that bring only economic benefits to shareholders, but not the 
right to vote. This type of investment requires the authorization of the SE and, as appropriate, the 
National Banking and Securities Commission.50 
                                                
48 Decree issuing the Hydrocarbons Law and amending various provisions of the Foreign Investment 
Law, Mining Law, and Law on Public -Private Partnerships, published in the Official Journal of 11  August  2014, 
and Decree i ssuing the Federal Telecommunications and Broadcasting Law and the Mexican Public Broadcasting 
System Law, and amending, supplementing and repealing certain provisions on telecommunications and 
broadcasting, published in the Official Journal of 14  July 2014. 
49 Article 26 of the LIE.  
50 Ibid., Articles 18, 19 and 20.  WT/TPR/S/35 2 • Mexico  
 
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  2.45.   The CNIE carries considerable weight when it comes to approving investments or setting 
foreign investment ceilings. Even in the case of activities not subject to any FDI limitation, the 
CNIE may impose restrictions when the total value of the assets of the co mpany for which the 
investment is intended exceeds a certain amount. The CNIE determines this amount annually. 
In 2016, the figure was Mex$4,005  million.51 Investment in excess of this amount requires CNIE 
approval.52 According to the authorities, however, t he CNIE has so far not rejected any 
investment.  
2.46.   Only Mexicans by birth or naturalization and Mexican companies (with a foreigners exclusion 
clause) have the right to acquire ownership of land, water and accessions thereto or to obtain 
concessions for the e xploitation of mines or waters.53 The Ministry of Foreign Affairs may grant 
that right to foreigners, provided that they agree to consider themselves nationals and not to 
invoke the protection of their governments with regard thereto. Generally speaking, fo reigners 
may not acquire direct ownership of land or waters within a restricted area of 100 km from the 
country's borders and 50 km inland from any coastline.54 Article 27 of the Constitution was 
amended during the review period, however, and foreigners are  now permitted to purchase land in 
the restricted zone, provided that it is intended for non -commercial, residential use.55 The LIE 
nonetheless authorizes foreign participation in Mexican companies that acquire real estate in the 
restricted area, to be used  for non -residential activities. Foreigners may also invest in a Mexican 
company that owns real estate in the restricted zone, for non -residential purposes, provided that 
the articles of association of the company contain a clause whereby foreigners agree to be 
considered as nationals and not seek protection from their governments with respect to such 
assets, and the Ministry of Foreign Affairs is notified accordingly.  
2.47.   Mexico does not restrict remittances abroad of profits, royalties, dividends, and interes t paid 
on loans, or repatriation of FDI -related funds. However, the free trade agreements and IPPAs 
signed by Mexico provide for the possibility of temporarily restricting transfers in the event of 
balance of payments problems.  
2.48.   Mexico has adopted disciplin es on investment in the framework of regional trade 
agreements and IPPAs. The investment chapters of RTAs generally establish disciplines on sectoral 
liberalization, national treatment, MFN treatment, minimum standard of treatment, performance 
requirements , expropriation and dispute settlement mechanisms (especially investor -State 
disputes). With the exception of the Mexico -Israel agreement, all of Mexico's RTAs contain a 
chapter on investment, or a commitment to promote investment between the parties, as i s the 
case with the agreements concluded with the European Union and EFTA.  
2.49.   During the period under review, Mexico signed IPPAs with Bahrain, Haiti, Kuwait, Turkey 
and the United Arab Emirates, bringing the total to 33.56 IPPAs generally cover the following 
disciplines: definition of investment; scope; promotion and admission; treatment of investment; 
expropriation; transfers; investor -State and State -State dispute settlement.  
2.50.    Mexico has signed agreements for the avoidance of double taxation with 60 countrie s, 
including its main trading partners; 55 of them are in force.57 
 
 
                                                
51 CNIE General Resolution No.  17, published in the Official Journal of 12  May 2016.  
52 Article 9 of the LIE.  
53 Article 27 of the Constitution.  
54 Ibid., Article 27.I.  
55 Online information viewed at : 
http://www3.diputados.gob.mx/camara/005_comu nicacion/b_agencia_de_noticias/009_2013/04_abril/18_18/
2708_comision_aprueba_dictamen_para_que_extranjeros_puedan_tener_viviendas_en_playas_y_fronteras . 
56 Online information viewed at: http://www.gob.mx/se/acciones -y-programas/comercio -exterior -
paises -con-tratados -y-acuerdos -firmados -con-mexico . 
57 Online information viewed at: 
http://www.sat.gob.mx/informacion_fiscal/normatividad/Paginas/tratados_fiscales.aspx . WT/TPR/S/35 2 • Mexico  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures directly affecting imports  
3.1.1   Registration, customs documents and procedures  
3.1.  Mexico's customs procedures are governed by the Customs Law and its implementing 
Regulations, the General Foreign Trade Rules published each year by the Ministry of Finance and 
Public Credit (SHCP), and a Decision of the Ministry of the Economy (SE).1 The legal framework 
also includes the legislation governing domestic  and import taxes.2 
3.2.  The General Customs Administration (AGA), a unit of the Tax Administration Service (SAT), is 
responsible inter alia  for facilitating and controlling the entry and exit of goods to or from Mexican 
territory, as well as for collecting tar iffs and other trade -related duties.  
3.3.  Mexico has six types of customs procedure: outright importation; temporary importation; 
in-bond storage; goods in domestic or international transit; manufacturing, processing or repair in 
an in -bond facility; and strate gic in -bond facility.3 Of these, only the strategic in -bond facility 
procedure has been modified since 2012. The change consists in that whereas previously such 
facilities could only be authorized in customs or port areas, now (2016) they may be establishe d 
throughout the national territory. In addition, taxes are now payable when the goods enter the 
facility, and not when they are removed as was previously the case.  
3.4.  During the period under review, Mexico continued the reform efforts of previous years to 
simplify customs procedures and promote international trade.4 As a result: (a) customs clearance 
may be carried out in a different place from that authorized by the SAT, when the nature of the 
product so requires; (b) importers may directly carry out customs  clearance formalities without 
having to use the services of a customs broker, which is now optional; (c) the Mexican Digital 
Window for Foreign Trade (Digital Window) was established; (d) the use of new technologies for 
inspecting goods has been boosted; (e) the second customs inspection has been abolished; and 
(f) it is now possible to rectify the import request (import declaration) before and after the 
computerized selection mechanism has been activated, and to change the customs procedure 
applicable to the goods without prior authorization.5 
3.5.  Mexican import requirements have not changed significantly since the previous review in 
2012. Importers must be enrolled in the Register of Importers kept by the SAT and in the Federal 
Register of Taxpayers. Importer s of specific sensitive goods or goods that present a potential risk 
to public health or national security must also be enrolled in the Register of Importers in 
Specific  Sectors.6 
3.6.  Importers must present electronically, either directly or through a customs broker or legal 
representative, an import request together with the following documents: commercial invoice; bill 
of lading, air waybill or transport document; documentation proving compliance with any 
applicable non -tariff regulations; documents proving t he source and origin of goods in cases where 
                                                
1 Customs Law (published in the Official Journal of the Federation (DOF) of 15  December  1995, latest 
amendment on 9  December  2013); Regulations implementing the Customs Law (latest version published in the 
Official Journal of 20  April 2015); General Foreign Trade Rules for 2016 (published in the Official Journal of 
27 January  2016); and Decision of the Ministry of the Economy iss uing general rules and criteria for foreign 
trade (published in the Official Journal of 6  July 2007, latest amendment on 15  October  2015).  
2 Federal Tax Code (published in the Official Journal of 31  December  1981, latest amendment dated 
17 June 2016); Regu lations implementing the Federal Tax Code (latest version published in the Official Journal 
of 2 April 2014); Foreign Trade Law (published in the Official Journal of 27  July 1993, amended on 
21 December  2006); Regulations implementing the Foreign Trade Law  (published in the Official Journal of 
30 December  1993, amended on 22  May 2014); General Import and Export Tax Law (publi shed in the 
Official  Journal on 18  June 2007, amended on 10  May 2016); Federal Law on Duty (published in the 
Official  Journal of 31  December  1982, amended on 18  November  2015).  
3 Customs Law, Title IV (Articles 90 -135D).  
4 Decree amending, supplementing and repealing various provisions of the Customs Law, published in 
the Official Journal of 9  December  2013.  
5 Articles 10, 36 and 36 -A, 40, 89, 93 and 101 of the Customs Law.  
6 Annex 10 A of the General Foreign Trade Rules (2016) lists the goods classed as sensitive. Viewed at: 
http://ww w.sat.gob.mx/aduanas/tramites_autorizaciones/guia_padrones/Documents/Anexo_10.pdf . WT/TPR/S/35 2 • Mexico  
 
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  tariff preferences, anti -dumping or countervailing duties ("derechos compensatorios"), quotas and 
country -of-origin marking requirements are applicable; where the declared value is lower than the 
price estimated  by the authorities, the document showing that the security has been deposited; 
and a certificate showing the weight or volume issued by SAT -authorized certifying companies for 
goods in bulk imported by sea. For goods that present a potential risk to publi c health or national 
security, information to permit the identification, examination and control of the imported goods 
must also be attached.  
3.7.  In accordance with the Federal Law on Duty, imports are subject to a customs processing fee 
(DTA), which varies ac cording to the customs procedure applicable to the goods and in some cases 
is calculated on the value of the imports (Table 3.1). Some imports, such as natural gas, are 
exempt from payment of this fee.7 
Table 3.1 Customs processing fee (DTA) rates, 2016a 
Type of import or procedure  Rate of duty  
Goods subject to the outright importation procedure, or goods exempted 
under the General Import and Export Tax Law or international treaties  0.008% of the value of the  goods  
Temporary import of fixed assets by in -bond assembly plants 
(maquiladoras) or firms with export programmes authorized by the SE  0.176% of the value of the goods  Import of machinery and equipment under the manufacturing, processing 
or repair in an in-bond facility procedure  
Temporary import of goods for manufacturing, processing, or repair in 
enterprises with Manufacturing, Maquila and Export Services Industry 
(IMMEX) programmes  
Mex$287  Import of goods exempt from trade taxes  
Operations involvi ng the return of imported goods  
Temporary import of goods to be returned without being transformed  
Import of goods having no customs value  
Operations carried out by foreign States  Mex$287  
Domestic transit  Mex$287  
International transit  Mex$2,673  
Extraction from the procedure for in -bond storage for return  Mex$287  
Transport of goods requiring several vehicles (fee payable for each 
shipment)  Mex$287  
Rectification of import request  Mex$276  
Gold imports  0.008% of the value of the gold for the 
purpos es of general import tax (not 
exceeding Mex$3,043)  
a These rates are only indicative.  
Source:  Federal Law on Duty and Omnibus Tax Resolution for 2016 and Annex 19 thereto published in the 
Official Journal of 23  December  2015.  
3.8.  After the relevant taxes and charges have been paid, and provided that the non -tariff 
regulations are fulfilled, the customs broker or legal representative verify electronically the 
information in the import request, following which the goods are presented to the customs 
authority tog ether with the import request and other required documentation and the 
computerized selection mechanism is activated.8 If the mechanism indicates that customs 
inspection is required the customs authority examines the documents and inspects the goods. If 
no irregularities that might give rise to a preventive embargo on the goods are detected, the 
goods are released immediately. Irrespective of the outcome of the computerized selection 
mechanism, the customs authority reserves the right to order verification of the goods or to 
exercise any of its verification powers.  
3.9.  According to data provided by the authorities, during the period from 2012 to 2016 (August), 
11.8% of import transactions were subject to customs inspection. Of this percentage, 36.8% led to 
a pre ventive embargo of the goods. The time required for customs clearance is usually two hours 
in the case of goods subject to customs inspection and eight minutes for goods not subject to this 
requirement.  
                                                
7 Federal Revenue Law for fiscal year 2015.  
8 This mechanism makes a random selection of the customs declarations to be inspected. The selection 
is based on an intelligent risk analysis system that takes into account information on the type of importer, 
exporter, product, value, country of origin and the sanitary and phytosanitary, national security, smuggling and 
fraud risks.  WT/TPR/S/35 2 • Mexico  
 
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  3.10.   During the period under review, the Comprehensive Ent erprise Certification Scheme 
(the Scheme) provided for in the Customs Law was modified to include the categories of Marketing 
and Importing Company and "Authorized Economic Operator".9 To obtain certification as an 
Authorized Economic Operator (OEA) in the  Marketing and Importing Company and "Authorized 
Economic Operator" categories, the applicant must submit a request for registration in the Scheme 
through the Digital Window, and must have engaged in foreign trade operations in the two years 
preceding the application. It also has to pay a fee of Mex$24,507, comply with the minimum 
security requirements and designate the transport enterprises authorized to carry the foreign  trade 
goods. In addition to these general requirements, there are specific requiremen ts depending on 
the category which the enterprise wishes to join (Table 3.2).  
Table 3.2 Specific requirements for the Marketing and Importing Company and 
"Authorized Economic Operator" categories  
Category  Requ irements  
Marketing and Importing Company  Cannot be an IMMEX programme beneficiary  
Must have carried out imports totalling at least Mex$300  million during the 
six months immediately prior to the application for registration  
"Authorized Economic Operator"  
Authorized Economic Operator, 
holding company sector  Must have been designated the holding company for the manufacturing or 
maquila operations of two or more controlled companies, and participate 
directly or indirectly in their administration, control or  capital  
Authorized Economic Operator, 
aircraft sector  Must have an ongoing IMMEX programme  
Where appropriate, have a permit from the Directorate -General of Civil 
Aviation for the establishment of aircraft workshops  
Authorized Economic Operator, 
Electron ic Inventory Control System 
for Temporary Imports (SECIIT) 
sector  Have an ongoing IMMEX programme  
Have been entered in the register of certified enterprises for the two years 
prior to submitting the application  
Have at least 1,000 workers registered with t he Mexican Social Security 
Institute (IMSS) or under service supply contracts, or have fixed assets of 
machinery and equipment for a peso value equivalent to US$30  million, or be 
quoted on recognized markets  
Have means of transport for the imported goods w hose final destination lies 
outside the border strip or region, as well as a booking system  
Have an electronic system of corporate control of operations  
Present a flow chart describing the working of the electronic inventory control 
system for temporary im ports 
Authorized Economic Operator, 
textiles sector  Be registered in the Enterprise Certification Scheme in the VAT and special tax 
on production and services (IEPS) categories  
Authorized Economic Operator, 
strategic in -bond facility procedure 
sector  Be registered in the Enterprise Certification Scheme in the VAT and IEPS 
categories and not be in the process of suspension or cancellation of 
certification  
Have a valid authorization under the strategic in -bond facility procedure for 
which cancellation has not been initiated  
Source:  First Resolution amending the General Foreign Trade Rules for 201 6 and annexes thereto, 
Glossary  of Definitions and Acronyms, 1, 4, 10, 21, 22, 24, 27, 28, 29, 30 and 31, published in the 
Official Journal of 9  May 2016.  
3.11.   Enterpri ses registered in the Marketing and Importing Company and "Authorized Economic 
Operator" categories enjoy some advantages aimed at speeding up customs procedures. For 
example, they are exempt from specific obligations in filling out the customs import requ est, they 
may change specific temporary imports from the temporary importation procedure to the outright 
importation procedure, and they are granted certain advantages relating to payment of fines and 
compliance with deadlines.10 Enterprises certified as au thorized economic operators have exclusive 
access to the "Express" channel for customs clearance of imports. The benefits under the Scheme 
vary according to the category to which the enterprise belongs and the sector in which it operates.  
3.1.2   Customs valuation  
3.12.   The customs value of goods is determined in accordance with the WTO Agreement on 
Customs Valuation and the Customs Law. In general, the transaction value is used to calculate the 
                                                
9 First Resolution amending the General Foreign Trade Rules for 2016 and annexes thereto, Glossary of 
Definitions and Acronyms, 1, 4, 10, 21, 22, 24, 27, 28, 29, 30 and 31, published in the Official Journal of 
9 May 2016.  
10 Idem.  WT/TPR/S/35 2 • Mexico  
 
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  value of goods, and when this cannot be done the alternative methods of valu ation set out in the 
WTO Agreement are used (Articles 71 and 78 of the Customs Law).  
3.13.   Where the documentation establishing the value is false or has been tampered with, or in 
the case of used goods, the customs authority may reject the declared value and de termine the 
customs value using the methods stipulated in the WTO Agreement, or on the basis of its own 
valuation. According to the authorities, in the majority of cases (70% in 2016) the transaction 
value is used. Importers have the right to request a jus tification, prior to release of the goods, as 
to the valuation method or elements used to determine their customs value.  
3.14.   Mexico still uses estimated prices for the valuation of certain goods in order to avoid 
undervaluation as well as tax evasion. Accordin g to the authorities, these prices only serve as a 
reference and cannot be used to determine the tax base for import taxes, and therefore the value 
declared by the importer is not rejected and the goods may be removed from customs. Estimated 
prices are use d for imports of used vehicles, textiles and clothing, and footwear, regardless of the 
origin of the imports.11 Importers must deposit a security in order to import any goods subject to 
an estimated price.  
3.1.3   Rules of origin  
3.15.   Mexico still uses preferential and non-preferential rules of origin. Non -preferential rules of 
origin are used to determine the origin of imports subject to anti -dumping or countervailing duties, 
in order to prevent circumvention by means of reshipment of goods through third countries.12 
However, a certificate of origin is not required and the declaration in the import request suffices.13 
3.16.   In general, the preferential rules of origin in treaties that have entered into force since 2012 
follow the same lines as those in the treaties previously si gned by Mexico. Since 2012, Mexico has 
signed trade agreements with Panama, Peru, Central America and the Pacific Alliance, and 
therefore applies the preferential rules of origin of those treaties.14 The criteria conferring origin 
may be general or specific . The use of non -originating materials that do not comply with the 
change of classification is permitted provided that they do not exceed a percentage of the total 
cost or weight of the good, as in the case of textiles. These treaties authorize cumulation,  
including extended cumulation, which allows the use of inputs originating in non -party States with 
which the Parties in turn have a trade agreement (Table 3.3).  
Table 3.3 Rules of origin under the regional tr ade agreements that have entered into 
force since 2012  
 Panama  Peru  Central America  Pacific Alliance  
Criteria of origin  (a) Goods wholly obtained or wholly produced in the territory of the Parties;  
(b) Goods wholly produced in the territory of the Parties  exclusively from originating 
materials;  
(c) Goods wholly produced in the territory of the Parties with non -originating materials that 
meet the criteria established in the specific rules of origin, i.e. change of tariff classification or 
minimum percentage  of value of local content.  
Tolerance rule  10% of transaction value  
Textiles  7% of total 
weight  10% of total 
weight  10% of total weight, except for 
elastomers (7%)  10% of total weight  
Cumulation of origin  Yes, among Parties; extended cumulation of or igin permitted  Yes, among Parties  
Source:  WTO Secretariat.  
                                                
11 Resolution establishing the mechanism to guarantee the payment of taxes on goods subject to prices 
estimated by the SHCP. Viewed at:  http://dof.gob.mx/nota_detalle.php?codigo=5436417&fecha=10/05/2016 . 
12 Decision amending the miscellaneous provis ion establishing the rules for the determination of the 
country of origin of imported goods and provisions for their certification, with respect to anti -dumping and 
countervailing duties, published in the Official Journal of 16  October  2008. Viewed at: 
http://dof.gob.mx/nota_detalle.php?codigo=5064504&fecha=16/10/2008 . 
13 Decree granting administrative facilities for customs and foreign trade purposes (published in the 
Official  Journal of 31  March  2008).  
14 WTO document G/RO/N/114 of 2  April 2014.  WT/TPR/S/35 2 • Mexico  
 
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  3.1.4   Tariffs  
3.1.4.1   Tariff structure and levels  
3.17.   In 2016, Mexico's Tariff Schedule contained 12,275 eight -digit lines of the HS 2012. In 
general, Mexico applies ad valorem tariffs , with the exception of 59 t ariff lines ( 0.7% of the total). 
Of these, 15 are subject to specific tariffs and 44, concerning sugar, sugar products or products 
containing sugar, are subject to compound tariffs.15 
3.18.   The average applied MFN tariff fell during the review period from 6.2% in  2012 to 5.5% in 
2016 (Table 3.4).16 This reduction is due to the lower protection afforded to agricultural products 
(WTO definition), which decreased from 20.9% in 2012 to 14.3% in 2016. Non -agricultural 
products were subject to a lower average tariff than  agricultural products, for which the average 
rate did not vary during the review period (4.6%).  
Table 3.4. Structure of MFN tariffs, 2012 and 2016  
(%) 
 2012  2016  
(HS07)  (HS12)  
1. Total number of tariff lin es 12,107  12,275  
2. Non-ad valorem  tariffs (% of tariff lines)  0.7 0.7 
3. Non-ad valorem tariffs without ad valorem  equivalents (% of tariff lines)  0.2 0.6 
4. Tariff quotas (% of tariff lines)  1.2 1.0 
5. Lines with zero tariffs (% of tariff lines)  58.3 58.1 
6. Average of lines above zero (%)  14.9 13.3 
7. Arithmetic mean  6.2 5.5 
8. Agricultural products (WTO definition)  20.9 14.3 
9. Non-agricultural products (including petroleum, WTO definition)  4.6 4.6 
10. Domestic tariff peaks (% of tariff lines)a 9.4 9.8 
11. International tariff peaks (% of tariff lines)b 9.4 9.8 
12. Overall standard deviation of applied rates  14.8 8.8 
13. Bound tariff lines (% of tariff lines)  100.0  100.0  
a Domestic tariff peaks are defined as rates that are more than three t imes the overall simple average 
applied rate.  
b International tariff peaks are defined as rates above 15%.  
Source:  WTO Secretariat estimates, based on data provided by the Mexican authorities.  
3.19.   Mexico substantially reduced tariffs during the review period. One of the biggest changes 
was the reduction in the highest tariff rate, which was cut from 254% to 100%. The products to 
which the 254% rate was applied in 2012, such as animal products, bacon and animal or vegetable 
fats and oils, are now subject to a ra te of 20% and 45%. Poultry meat and edible offal have a tariff 
of 100% (234% in 2012), and other products such as fresh cheese and white and black beans, 
which were subject to tariffs of 125% in 2012, now have a tariff of 45%.  
3.20.   On average, the highest dutie s by WTO category continue to be applied to agricultural 
products, specifically sugar and confectionery, and to animals and animal products, with tariffs of 
40.9% (63.3% in 2012) and 24.8% (48.2% in 2012), respectively (Table A3.1). The tariffs applied 
to non-agricultural products have not varied significantly since 2012; the products with the highest 
average tariff remain clothing (21.6% in 2012 and 21% in 2016) and fish and fish products 
(16.8% in 2012 and 15.5% in 2016).  
3.21.   The Decree amending the Tariff of  the General Import and Export Tax Law (published in the 
Official Journal of 24  December  2008) provides for a unilateral tariff -cutting programme that 
                                                
15 Compound tariffs are applied to products such as: milk and milk components, cream and whey, 
containing added sugar (HS 0402 and 0404); dairy spreads (HS 0405); frozen fruit and nuts a nd other fruit 
and nuts containing added sugar (HS 0811); molasses (HS 1703); sugar confectionery (HS 1704); chocolate 
and other food preparations containing cocoa (HS 1806); food preparations of flour, groats and cereal 
products, baker's products (HS 1901 ; 1904 and 1905); other food preparations (HS 2106); jams and jellies 
(HS 2006 and 2007); ice cream (HS 2105); mineral water (HS 2202); ethyl alcohol (HS 2207) and citric acid 
esters (HA 2918).  
16 The compound tariffs were not used in the calculation of the  average tariff, because the specific 
component of the compound tariff varies according to the sugar content of the product, which complicates and 
renders inaccurate the calculation of the ad valorem equivalent.  WT/TPR/S/35 2 • Mexico  
 
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  began on 2  January  2009 and should have ended in 2013 with the liberalization of 165 lines 
relating to cl othing and footwear. However, the reduction for these lines was postponed until 2019.  
3.22.   As a consequence of this tariff cutting, the applied tariffs now range from 0% to 100%, 
disregarding the compound tariffs. The most frequent tariff rate, which is applied  to 58.1% of tariff 
lines (58.3% in 2012), is the zero rate (Chart 3.1). In January  2016, tariff lines with an 
ad valorem  tariff higher than zero were subject to 18 different rates (28 in 2012), ranging from 
3% to 100%.17 Apart from 0%, the most common rate s remain 5% (1,013 lines), 10% 
(1,274  lines) and 15% (1,337 lines). In 2016, 98% of tariff lines were subject to a tariff of 20% 
or less. 
3.23.   Mexico bound all its tariff lines in the Uruguay Round, at levels ranging from 0 to 254%. 
About 77% of the total were bound at 35%, 9% at levels below 35%, and the remainder at levels 
above 35%. Mexico's bound tariff, like the applied tariff, contains specific and compound tariffs. 
The bound compound tariffs apply to products such as meat and offal; milk and dairy product s; 
potatoes and dried leguminous vegetables; cereals; animal or vegetable fats and oils; sugars and 
confectionery; cocoa and cocoa preparations; and food preparations. The compound tariffs have a 
specific component and an ad valorem  component that acts as a minimum tariff; the ad valorem  
component ranges from 47% to 254%.  
3.24.   Mexico applies seasonal ta riffs to sorghum (HS 1007.90.01 -1007.90.02), soya beans 
(HS 1201.90.01 - 1201.90.02) and  safflower seeds (HS 1207.60.02 -1207.60.03). As a result of 
the applicatio n of this type of tariff, imports of these three products enter Mexico duty -free during 
a specific period of the year, but outside this period sorghum and soya beans are subject to a 15% 
tariff and safflower seeds to a 10% tariff.  
Chart 3.1 Frequency distribution of tariff rates, 2012 and 2016  
Number of linesa 
58.3%
8.1%12.5%11.5%
6.8%
1.3%0.3% 1.0%58.1%
8.5%12.1%10.9%
8.2%
0.7%0.1% 0.8%
01,0002,0003,0004,0005,0006,0007,0008,000
0% >0%-5% >5%-10% >10%-15% >15%-20% >20%-25% >25%-30% >30%Number of lines 2012 (HS 2007)
Number of lines 2016 (HS 2012)
 
a The 2012 Tariff contained 12,108 lines, and the 2016 Tariff, 12,275 lines.  
Note:  The total of the lines does not add up to 100%, as 0.2% concern prod ucts of which imports are 
prohibited and which carried no tariff in 2012. For the analysis relating to 2016, compound duties 
were excluded from the calculation (44 lines).  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.4.2   Tariff quotas  
3.25.   Mexico still uses three types of tariff quota: those negotiated in the WTO, unilateral quotas 
and preferential quotas.  
                                                
17 The rates were: 3%, 4%, 5%, 6%, 7%, 9%, 10 %, 15%, 17%, 20%, 25%, 30%, 36%, 45%, 50%, 
67%, 75% and 100%.  WT/TPR/S/35 2 • Mexico  
 
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  3.26.   Within the WTO framework, Mexico applies tariff quotas to 72 HS eight -digit lines. These 
products are: powdered milk, cheese, coffee, meat and edible offal, animal fats, potatoes, beans, 
wheat, barley, maize, sugar and products with a high sugar content. In 2015, most of these 
quotas were not used either because the applied MFN tariff was lower than the tariff for in -quota 
import s, or because market access conditions offered under a unilateral quota were more 
favourable than those offered under the WTO multilateral quota, or else because Mexico's imports 
on preferential terms exceeded the WTO quota amount (Table A3.2).  
3.27.   Mexico also  has unilateral import quotas aimed at boosting the competitiveness of 
production chains, coping with higher international prices, enabling operators in certain sectors to 
access inputs on similar conditions to those existing abroad, or satisfying demand w hen there is a 
shortfall in the national supply of some products. To determine the volume or value of these 
quotas, the SE takes into account the domestic availability and supply of the product in question 
as well as the opinion of industry stakeholders an d the Foreign Trade Commission (COCEX). In 
general, quotas are allocated by public auction. However, the SE may choose to use other 
procedures that ensure adequate access for all bidders; for exampl e, direct allocation and 
"first come, first served". Once the quotas have been allocated, importers must obtain a 
non-automatic import licence ("quota certificate"). The SE publishes in the Official Journal the total 
quantity, volume or value of the quota, requirements for submitting applications, term of validit y 
of the corresponding licence and procedure for allocation of the quota among applicants.  
3.28.   Mexico currently has unilateral quotas for 74 HS eight -digit tariff lines comprising both 
agricultural products and manufactures (Table A3.3). Of these lines, 18 are  also subject to 
WTO-type quotas; this is the case for beans, coffee, barley and poultry meat. For these products, 
the in -quota tariff is lower than in the case of the WTO quota. In 2015, volumes imported within 
the WTO quota were generally much smaller th an within the unilateral quota (Table A3.3).  
3.29.   Mexico has negotiated preferential quotas under its trade agreements with: 
Argentina  (ECA 6) (79 eight -digit lines of the 2012 HS) and ECA 55, appendix 1 (26 lines); 
Brazil:  ECA 53 (12 lines) and ECA 55, appendi x 2 (26 lines); Colombia (28 lines); 
Costa  Rica (18 lines); Cuba: ECA 51 (97 lines); El Salvador (13 lines); Guatemala (15 lines); 
Honduras (12  lines); Israel (21 lines); Japan (42 lines); Nicaragua (11 lines); Peru (50 lines); 
Uruguay (33  lines) and the E uropean Union (4 lines).  
3.1.4.3   Preferential tariffs  
3.30.   Mexico grants preferential treatment for imports from countries with which it has 
preferential agreements. In 2016, it granted preferences to 46 countries with which it had signed 
FTAs (12 treaties in all) and to six other countries with which it had partial agreements in the 
LAIA framework.  
3.31.   The average preferential tariff in these FTAs is in all cases lower than the MFN average.18 
Average preferential tariffs range between 0% and 3.3% and are lower for non -agricultural 
products, where the range is 0% to 2.8%. The preferences granted for agricultural products are 
smaller than those granted to non -agricultural products, and in some cases very close to the MFN 
tariff. The preferential levels for agricultural product s range between 0% and 14.1%. Duty -free 
status granted under all the agreements, except that with Panama, covers over 90% of the total 
Tariff Schedule, and in some cases (Chile, Nicaragua and the United States) even reaches 99% or 
100% (Table A3.4).  
3.32.   The pr eferences granted under partial agreements cover about 60% of the total tariff, with 
the exception of the agreement with the Plurinational State of Bolivia. The preference margin 
granted in these agreements compared with the average MFN tariff is not large , owing to the fact 
that Mexico has cut its MFN tariffs and the agreements were negotiated before this reduction and 
have not been renegotiated.  
                                                
18 In the calculation of this average, the lower of the MFN tariff and the preferential tariff was used for 
each product, in order to reflect market access conditions more accurately.  WT/TPR/S/35 2 • Mexico  
 
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  3.1.4.4   Tariff concessions  
3.33.   In general, all imported goods must pay import duties, except for those explicitly exempted 
by law. These exemptions apply to imports of goods for the use, inter alia , of public agencies for 
national defence or public security, Foreign Service officials, international organizations, and 
educational institutions. Imports for aircraft maintenance a re also exempt, as are grants/donations 
and goods imported by persons living in the border zone for their own consumption (Article 61 of 
the Customs Law).  
3.34.   Mexico also continues to grant tariff concessions under various programmes, such as the 
sectoral prom otion programmes (PROSEC) and the Manufacturing, Maquila and Export Services 
Industry (IMMEX) programme.  
3.1.5   Other charges affecting imports  
3.35.   Both imported and domestic products are subject to various i nternal taxes. These are: value 
added tax (VAT); the specia l tax on production and services (IEPS); and the tax on new motor 
vehicles (ISAN).  
3.36.   Definitive imports are subject to VAT, except for personal luggage and household effects, 
donated goods and works of art.19 The VAT rate has not varied since the previous rev iew (2012) 
and remains 16%. However, unlike what occurred in the period covered by the previous report, 
this 16% rate is now applied throughout the national territory, including the border regions where 
in 2012 the rate was 11%. The tax base for the calcul ation of VAT on imports is the customs value 
of the goods plus the amount of import tariffs and other duties (Article 27 of the Law  on VAT).  
3.37.   Mexico has not increased the IEPS rates since the previous review in 2012, but it has added 
items to the list of pr oducts subject to the tax (Table 3.5). In December  2016, the IEPS applied to 
products such as alcoholic beverages, tobacco products, fuels, flavoured energy drinks with added 
sugar, pesticides and basic foodstuffs, some of which were not covered in 2012 (T able 3.5). 
Depending on the product, the IEPS may be ad valorem  (alcoholic beverages), specific 
(fossil  fuels) or compound (cigarettes).  
3.38.   New vehicles whose price is higher than Mex $222,032.19 continue to be subject to the 
ISAN, which is a compound tax with  an ad valorem  component and a specific component. For 
vehicles bought in the country, the tax is calculated on the sales price of the vehicle to the final 
consumer.20 In the case of imports, the tax is calculated on the basis of the customs value plus 
import duty and other import -related duties, excluding VAT.21 The tax incentive provided in 2012 
to promote the purchase of automobiles under a certain value continues to be granted (Table 3.5). 
Electric motor vehicles are exempt from the ISAN.  
Table 3.5 Other import charges, 2016  
 Taxable goods  Rate in 2016  Changes since2012  
VAT  All goods, except those specified in 
Article 25 of the Law on VAT (for 
example, personal luggage or 
household effects)  16% The preferent ial 11% rate for border zones 
was abolished in 2014.  
IEPSa Alcoholic beverages and beer  26.5%, 30% or 53%, 
according to the alcohol 
content  No change  
Alcohol, denatured alcohol and 
non-crystallized honey  50% No change  
Cigarettes  160% + Mex$0.35/cigar ette  No change  
                                                
19 Article 2 5 of the Law on VAT (published in the Official Journal of 29  December  1978; latest 
amendment published in the Official Journal of 11  December  2013).  
20 Article 3 of the Federal Law on the ISAN, published in the Official Journal of 30  December  1996. The 
latest amendment was published in the Official Journal of 27  December  2006. The latest update of the amounts 
was published in the Official Journal of 5  January  2012. Five brackets of automobile prices are established for 
the purpose of calculating the tax. The  tax consists of a specific amount ranging from Mex$0 and 
Mex$8,260.86 (US$ 1,700) depending on the price bracket for the automobile, and an ad valorem  rate which 
ranges from 2% to 17%, applied to the difference between the value of the vehicle and the low er limit in the 
corresponding price bracket.  
21 Article 2 of the Federal Law on the ISAN.  WT/TPR/S/35 2 • Mexico  
 
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   Taxable goods  Rate in 2016  Changes since2012  
Cigars and other worked tobacco  160%; 30.4% if hand made  No change  
Motor vehicle fuels  The specific rate is updated 
each month by an SHCP 
Decision published in the 
Official Journal.  Not applicable  
Gasoline (petrol), below  
92 octane  
Gasoline (petrol), 92 octane or 
higher  
Diesel  
Non-fossil motor vehicle fuels  
Fossil fuels (carbon emissions)   Fossil fuels were included in 2014.  
The specific rate is updated each year by a 
SHCP Decision published in the Official 
Journal.  Decision No.  26/2015, published in 
the Official Journal of 24  December  2015, 
includes the specific rates for 2016.  Propane  Mex$0.629/litre  
Butane  Mex$0.815/litre  
Gasoline (petrol) and aviation fuel  Mex$0.1105/litre  
Jet fuel and other kerosene s  Mex$0.1320/litre  
Diesel  Mex$0.1340/litre  
Fuel oil  Mex$0.1431/litre  
Petroleum coke  Mex$16.60/tonne  
Mineral coke  Mex$29.31/tonne  
Coking coal  Mex$38.93/tonne  
Other fossil fuels  Mex$42.37/tonne of carbon 
in the fuel  
Energy drinks and sy rups and 
concentrates for the preparation 
thereof  25%; 25% + Mex$1/litre 
when containing added sugar  No change  
Flavoured drinks and syrups and 
concentrates for the preparation 
thereof, containing added sugar  1 peso/litre  In 2014 flavoured beverages were  included 
with the exception of: those with a health 
registration (cough syrups, oral serums); 
those with a hi gh nutritional value (milk); 
or those prepared in bars or res taurants 
(considered a service).  
Pesticides  0%, 6%, 7% or 9%, 
according to the tox icity 
category  In 2014 pesticides were included with rates 
between 0% and 4.5%; these rates were 
changed in 2015.  
As of 2015,  the Law set rates of 6%, 7% 
or 9% according to the toxicity category.  
High-calorie non -staple foods 
(≥ 275 kcal/100 grams)  8% High-calorie non -staple foods were included in 
2014.  
ISANb New automobiles, except for those 
imported duty free or under a trade 
agreement and automobiles costing 
not more than Mex$222,032.19  Rate bet ween 2% and 17% + 
specific rate of between 
Mex$4,782.06 and 
Mex$26,301.72  Since 2015 electric motor vehicles have been 
exempt.  
A 50% discount is granted on the rate for 
motor vehicles with a sales price of between 
Mex$222,032.20 and Mex$281,240.78.c 
a The Law on the IEPS, updated on 29  July 2016, can be viewed at:  
http://www.diputados.gob.mx/LeyesBiblio/ref/lieps/LIEPS_cant04_27dic16.pdf . 
b The Federal Law on New Au tomobiles, updated on 13  January  2016, can be viewed at:  
http://www.diputados.gob.mx/LeyesBiblio/pdf/123_120117.pdf . 
c This amount is updated every year by a SHCP Resolution publish ed in the Official Journal 
(latest  update contained in Annex 15 of the Omnibus Tax Resolution for 2015 (published in the 
Official  Journal of 13  January  2015).  
Source:  Online information viewed at: 
http://www.sat.gob.mx/fichas_tematicas/reforma_fiscal/Paginas/default.aspx . 
3.1.6   Import prohibitions, restrictions and licensing  
3.39.   The Foreign Trade Law (LCE) and its implementing Regulations continue to regulate the 
imposition of n on-tariff measures. The Executive is empowered to impose such measures to 
regulate trade in goods, by means of decisions issued by the Ministry of the Economy (SE) or 
jointly with the competent authority and published in the Official Journal. Before being issued, 
these measures are evaluated by the Foreign Trade Commission, except in cases of emergency.22 
If the Commission does not accept the proposed measure, the relevant bodies must revise it.  
3.40.   Under the LCE (Article 16), non -tariff measures may be adopted:  to remedy temporarily 
balance -of-payments imbalances; to regulate the entry of used goods, waste or goods with no 
substantial market in their country of origin or provenance; to administer the provisions of 
international treaties or conventions to which M exico is a party; in retaliation against other 
countries that have restricted Mexican imports; to prevent unfair international trade practices; 
                                                
22 Articles 14 to 25 of the Regulations implementing the LCE of 1993 (latest amendment published in 
the Official Journal of 29  December  2000).  WT/TPR/S/35 2 • Mexico  
 
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  and to protect national security, public health and the environment, or for animal or plant 
health  reasons.  
3.41.    Mexico still prohibits the import of certain products (22 products of the HS 2012 at 
eight-digit level), in particular chemicals and drugs.23 The list has not changed since the 
previous  review.  
3.42.   Mexico has an import licensing system (prior import permit and/or automatic import 
notification) which is based, as notified to the WTO, on the premise that imports into the country 
are exempt from this requirement with the exception of the products specified by a decision issued 
by the SE as being subject to licensing ( prior import permit and/or automatic import notification). 
The legal basis of the import licensing system is the LCE.24 In 2013, Mexico resumed using 
automatic licences (automatic permits), which had been abolished in 2005. Thus, Mexico currently 
uses both automatic licensing (automatic permits) and non -automatic licensing (prior permits).  
3.43.   Automatic licensing (automatic notification) is used to keep a record of imports.25 In 2016, 
these concerned iron products (146 HS eight -digit lines), slot machines (HS one -digit line), textiles 
(734 HS eight -digit lines) and footwear (122 HS eight -digit lines).26 The licence must specify the 
import procedure and tariff line, as well as the value and quantity authorized to be imported or 
exported and period of validity. Licen ces may be valid for a period ranging from 60 days to 
four months depending on the product concerned, and are non -transferable. The customs 
authorities may authorize one or more automatic extensions of the validity of the original import 
licence. The exten sion is for 30 days where the goods arrive by sea or seven days in other cases.27 
3.44.   Mexico continues to apply non -automatic licensing (prior permits) in order to regulate trade 
in specific products. The purpose of these licences is not to restrict the quantit y or value of the 
imports.28 Non-automatic licensing (prior permits) applies to products originating in all countries, 
except where it is used to administer undertakings negotiated in the framework of a trade 
agreement.29 Non-automatic licences (prior permit s) are also required to import certain products 
under the Decree to promote the Manufacturing, Maquila and Export Services Industry (IMMEX) 
and under sectoral promotion programmes (PROSEC).  
3.45.   The SE is responsible for issuing most non -automatic licences (pri or permits), although 
some of these are regulated and issued by other Ministries (Table 3.6). The lists of goods subject 
to non -automatic licensing (prior permits) is reviewed on the basis of technical criteria at least 
once a year with a view to proposing  to the Foreign Trade Commission that those considered 
unnecessary be abolished or others considered desirable be added. There is also an 
Interministerial Commission for the control of certain products such as pesticides, fertilizers and 
toxic substances.30 
                                                
23 WTO document G/MA/QR/N/ MEX/1 of 27  July 2016.  
24 WTO document G/LIC/N/3/MEX/5 of 10  October  2013.  
25 Automatic permits (Article 21 of the Regulations implementing the Foreign Trade Law).  
26 WTO documents G/LIC/N/1/MEX/4 of 15  April 2014; G/LIC/N/2/MEX/3 of 15  April 2014; 
G/LIC/N/2/ MEX/6 of 11  March  2015; and G/LIC/N/2/MEX/5 of 10  March  2015.  
27 Regulations implementing the Foreign Trade Law (latest amendment published in the Official Journal 
of 22 May 2014).  
28 Decision determining the classification and coding of goods whose import a nd export are subject to a 
prior permit issued by the SE, published in the Official Journal of 6  July 2007 (latest amendment published in 
the Official Journal of 3  September  2012). Viewed at:  
http://www.dof.gob.mx/nota_detalle.php?codigo=5283884&fecha=31/12/2012 . 
29 Decision of the Ministry of the Economy issuing general rules and criteria for foreign trade, published 
in the Official Journal of 31  December  2012 (latest upd ated published in the Official Journal of 1  April 2016).  
30 Decision establishing the classification and coding of goods whose import and export are subject to 
regulation by the bodies comprising the Interministerial Commission for the Control of the Proces sing and Use 
of Pesticides, Fertilizers and Toxic Substances (published in the Official Journal of 12  April 2013; latest 
amendment published in the Official Journal of 5  February  2016).  WT/TPR/S/35 2 • Mexico  
 
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  Table 3.6 Ministries issuing import permits, 2016  
Ministry  Product  Decision establishing the classification and coding of 
the products/goods:  
Health  Essential chemicals  
 
Products for human consumption, fi nished 
products and raw materials for 
medicaments, pharma -chemicals, 
narcotics and psychotropic substances; 
products for the diagnosis, treatment or 
rehabilitation of illnesses in humans; 
chemical substances; and tobacco and 
cigarettes  Essential chemicals whose import and export are subject to 
submission of a prior opinion from the Ministry of Health 
(Official Journal of 30  June 2007, latest amendment 
published in the Official Journal of 1  June 2010).  
 
Goods whose import, export, inward clearance or exit is  
subject to sanitary regulation by the Ministry of Health 
(Official Journal of 16  October  2012, latest amendment 
published in the Official Journal of 5  February  2016).  
SEMARNAT  Species listed in the CITES (Convention on 
International Trade in Endangered S pecies 
of Wild Fauna and Flora) appendices; 
forestry products and by -products; toxic 
or hazardous substances or materials  Goods whose import and export are subject to 
regulation by SEMARNAT (Official Journal of 
19 December  2012, latest amendment published in the 
Official Journal of 24  March  2016).  
 Hydrocarbons and petroleum products  Hydrocarbons and petroleum products whose import 
and export are subject to prior licensing by the SENER 
(Official Journal of 29  December  2014, latest amendment 
published in th e Official Journal of 30  December  2015).  
Nuclear materials and fuels, radioactive 
materials, and equipment that generates 
ionizing radiation  Goods whose import and export are subject to 
regulation by the SENER (Official Journal of 2  March  2012, 
latest am endment published in the Official Journal of 
2 March  2016).  
National 
Defence  Arms, ammunition, gunpowder, 
explosives, fireworks, and chemical 
substances related to explosives  Goods whose import and export are subject to 
regulation by the Ministry of Defen ce (Official Journal of 
30 June 2007, latest amendment published in the Official 
Journal of 13  January  2016).  
SAGARPA  Agricultural products and aquatic species  Goods whose import is subject to regulation by SAGARPA 
(Official Journal of 3  September  2012, latest amendment 
published in the Official Journal of 18  July 2016).  
Note:  SEMARNAT: Ministry of the Environment and Natural Resources; SENER: Ministry of Energy; 
SAGARPA: Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food.  
Source:  Information provided by the authorities.  
3.46.   Non-automatic licences are processed through the Digital Window, regardless of the body 
issuing them. The deadline for issuing non -automatic licences (prior permits) may not exceed 
15 working days from the date of a pplication. These licences are generally valid for one year and 
may be extended for a further year up to three times, except in the case of hydrocarbons and 
petroleum products, for which the licences may be valid for up to 20 years and may be extended 
once only for half of the period of the original licence.31 
3.47.   In 2016, 3,499  tariff lines were subject to non -automatic licensing and 1,003 tariff lines 
were subject to automatic import licensing. In principle, the application of one type of licence does 
not excl ude the other; in the case of textiles, footwear and metals, both types of licensing apply 
(Chart 3.2).  
                                                
31 Decision establishing the classification and coding of hydrocarbons and petroleum products whose 
import and export are subject to a prior permit from the Ministry of Energy (published in the Official Journal on 
29 December  2014; latest amendment published in the Official Journal on 30  December  2015).  WT/TPR/S/35 2 • Mexico  
 
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  Chart 3.2 Automatic and non -automatic import licensing, by HS 2016 section  
(Number of tariff lines)  
436 429
18156
26977
96717764
128
1 3153
3519101
49
428734 
122 146
1
01002003004005006007008009001,000
1 2 3 4 5 6 7 8 9 11 12 13 14 15 16 17 18 20 21OtherNon-automatic licensing
Automatic licensingHS sections:
1 -Live animals
2 -Vegetable products
3 -Fats and oils
4 -Prepared foodstuffs
5 -Mineral products
6 -Chemical products
7 -Plastics
8 -Hides and skins
9 -Wood
11 -Textiles
12 -Footwear
13 -Articles of stone
14 -Natural pearls
15 -Base metals
16 -Machinery and mechanical appliances
17 -Transport equipment
18 -Instruments
20 -Miscellaneous manufactured articles
21 -Works of art
Other -Unclassified products
 
Source: WTO Secretariat calculations, based on data provided by the authorities.  
3.1.7   Contingency measures  
3.48.   During the period under review, Mexico increased its use of contingency measures, in 
particular anti -dumping (AD) measures, compared with the previous review  period (Table 3.7). 
Between 1  January  2012 and 30  November  2016, Mexico initiated 34 new AD investigations and 
one subsidies investigation. A total of 34 new definitive AD duties and three countervailing duties 
were imposed. Mexico had 64 definitive AD me asures and three countervailing measures in force 
at 30 November  2016.  
Table 3.7 Number of investigations initiated and contingency measures imposed by type 
of measure, 2012 -2016 (30  November)  
Year  Anti-dumpin g 
investigations 
initiated  Countervailing 
investigations 
initiated  Safeguard 
investigations 
initiated  New 
anti-dumping 
duties 
imposed  New 
countervailing 
duties imposed  New 
safeguard 
measures 
imposed  
2007 -2011  14 3 1 4 0 0 
2012 4 0 0 4 2 0 
2013 6 1 0 2 0 0 
2014 14 0 0 8 1 0 
2015 9 0 0 9 0 0 
2016 1 0 0 11 0 0 
2012 -2016  34 1 0 34 3 0 
Source:  WTO Secretariat, on the basis of information provided by the authorities.  
3.1.7.1   Legal and institutional framework  
3.49.   The use and application of contingency measures (anti -dumping and countervailing duties 
and safeguard measures) are governed by the LCE32 and its implementing Regulations.33 At the 
                                                
32 Titles V -VII, compri sing Articles 28 -89F. 
33 Titles IV -VIII, comprising Articles 37 -176. WT/TPR/S/35 2 • Mexico  
 
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  bilateral level, the use and application of such measures are also governed by the trade 
agreements signed by Mexico (Section 2).  
3.50.   A decree amending, supplementing and repealing various provisions of the Regulations 
implementing the LCE entered into force on 23  May 2014 and was notified to the WTO.34 However, 
some of these changes only entered into force six months after their publicatio n in the 
Official Journal, in other words on 23  November  2014. These provisions apply to all imports, 
regardless of their origin and provenance, including those from the United States and Canada. 
These changes were introduced in order to spell out various aspects of some reforms to the LCE, 
and to update and adapt various provisions of its implementing Regulations in order to make them 
clearer. These changes led to the abolition of some articles of the Regulations, the introduction of 
some guidelines, the m odification of some deadlines, and greater detail concerning the stages of 
the special procedures established in the LCE (product coverage, circumvention of anti -dumping 
and countervailing duties, extension of benefits, clarifications and new exporter proc edure), among 
other details and clarifications.  
3.51.   The SE's International Trade Practices Unit (UPCI) is the authority responsible for 
anti-dumping, subsidies and safeguard investigations. It is in charge of conducting and completing 
such investigations and p roposing the application (or not) of the relevant countervailing, AD and 
safeguard measures. Another of the UPCI's responsibilities is to assist Mexican exporters affected 
by such measures adopted by other countries. It also acts as an advisory unit for th e SE and other 
governmental bodies in international trade negotiations and other matters within its purview.35 
3.1.7.2   Anti-dumping measures  
3.52.   Mexico had 64 definitive anti -dumping measures in force at 30  November  2016 (Table 3.8). 
This represents an increase of 68.4 % over December  2011 and the previous review period, when 
there were 38 measures.36 Despite this clear increase, the number is well below the 
93 anti-dumping measures in force in December  1995.37 
Table 3.8 Defin itive anti -dumping measures in force as at 30  November  2016  
Country or customs 
territory  Product  Date of original 
imposition  
Germany  Hot-rolled steel coils  23.12.2015  
Argentina  Epoxidized soya oil  13.02.2016  
Brazil  Bond paper, cut  12.03.2013  
Corruga ted rods  12.08.1995  
Multilayer paper sacks for lime and cement  26.01.2006  
Chile  Mushrooms of the genus  Agaricus  18.05.2006  
China  Ceramic floor and wall tiles  
Aluminium kitchenware  
Steel wire rod  
Steel and zamak handles  25.10.2016  
14.10.2016  
29.07.2016  
24.12.2015  
Hot-rolled steel coils  23.12.2015  
Children's bicycles  22.12.2015  
Ammonium sulphate  10.10.2015  
Cold-rolled sheet  20.06.2015  
Stainless steel sinks  09.05.2015  
Steel ropes and cables  17.12.2014  
Blenders for domestic and commercial use  10.12.2014  
Steel plate in sheets  15.10.2014  
Galvanized carbon steel wire mesh  10.10.2014  
Pencils  27.05.2014  
Blankets of synthetic fibres  27.05.2014  
Ceramic and porcelain dishware and loose articles  14.01.2014  
Seamless steel tubing  08.01.2014  
Radio guide (RG) –type coaxial table with or without 
messenger  11.08.2012  
Graphite electrodes for electric arc furnaces  02.03.2012  
                                                
34 WTO documents G/ADP/N/1/MEX/1/Suppl.5, G/SCM/N/1/MEX/1/Suppl.4, and 
G/SG/N/1/MEX/1/Suppl.4 of 13  June 2014.  
35 Online information from the SE . Viewed at:  http://www.gob.mx/se . 
36 WTO document OMC G/ADP/N/223/MEX of 12  March  2012 and WTO documents in the series 
G/ADP/N/*/MEX.  
37 WTO document G/ADP/N/9/MEX/Suppl.1  of 14 August  1996.  WT/TPR/S/35 2 • Mexico  
 
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  Country or customs 
territory  Product  Date of original 
imposition  
Galvanized hexagonal mesh  25.07.2002  
Steel chain with welded rinks  18.07.2003  
High-carbon ferro manganese  26.09.2003  
Sodium hexametaphosphate  04.08.2004  
Carbon steel connections for welding  05.08.2004  
Concrete steel nails  30.11.2004  
Mushrooms of the genus Agaricus  18.05.2006  
Plastic atomizers  22.04.2009  
Seamless steel tubing  25.02.2011  
Prestressed products   27.02.2016  
Korea, Rep. of  Cold-rolled sheet  27.12.2013  
(Price undertaking)  
Short fibre polyester  20.08.1993  
Spain  Carbon steel tubing with straight longitudinal or helical seams  21.04.2016  
Prestressed products  27.02.2016  
United States  Ammonium su lphate  10.10.2015  
Carbon steel tubing with straight longitudinal seams  28.05.2005  
Chicken legs and thighs  07.08.2012  
Epoxidized soya oil  30.07.2005  
Liquid caustic soda  13.07.1995  
Monobutyl ether of ethylene glycol  12.09.2012  
Partially hydrogena ted fatty acid  08.04.2005  
Stearic acid  09.04.2005  
Carbon steel tubing with straight longitudinal or helical seams  21.04.2016  
France  Hot-rolled steel coils  23.12.2015  
India  Ferro-silico-manganese  19.10.2016  
Carbon steel tubing with straight longitud inal or helical seams  21.04.2016  
Japan  Seamless steel tubing  11.11.2000  
Kazakhstan  Cold-rolled sheet  30.06.1999  
Portugal  Prestressed products  27.02.2016  
United Kingdom  Carbon steel tubing with straight longitudinal seams  06.01.2010  
Romania  Carbon stee l plate in sheets  22.09.2005  
Russian Federation  Carbon steel plate in sheets  22.09.2005  
Cold-rolled sheet  30.06.1999  
Hot-rolled sheet  29.03.2000  
Steel plate in coils  08.06.1996  
Ukraine  Bars and rods of iron or non -alloy steel  19.09.2000  
Carbon steel plate in sheets  22.09.2005  
Ferro-silico-manganese  25.09.2003  
Hot-rolled sheet  29.03.2000  
Source:  WTO document G/ADP/N/286/MEX of 7  September  2016, Official Journal, viewed at: 
http://www.dof.gob.mx ; and info rmation provided by the authorities.  
3.53.   At 30  November  2016, Mexico applied definitive AD measures on imports of various 
products coming from 17 countries or territories; 83% of these measures (53) were applied to 
imports from seven origins, in decreasing ord er: China (29), United States (8)38, 
Russian  Federation (4), Ukraine (4), Brazil (3), India (2) and Spain (2). Mexico also imposed 
definitive AD duties on imports from Argentina, Chile, France, Germany, Japan, Kazakhstan, the 
Republic of Korea, Romania, Por tugal, and the United Kingdom, each of which was affected by one 
definitive measure (Table 3.8).  
3.54.   Approximately 60% (i.e. 39) of the definitive AD duties in force at November  2016 were 
imposed on steel products or steel manufacturing materials, machinery an d equipment. This is 
primarily due to the large number of definitive measures imposed on steel and steel products 
imported from China (16), as well as the Russian Federation (4), Ukraine (4), United States (2), 
India (2) and Spain (2). Other imports subjec t to AD measures in November  2016 included in 
particular food, chemicals, plastics, paper, household products and textiles from Brazil, China, and 
the United  States. As may be seen in Chart 3.3, in recent years the number of areas subject to 
investigations  has diminished, while the percentage accounted for by the iron and steel industry 
has increased substantially, from an average of 43% over the last 20 years to 68% in the period 
under review (Chart 3.3).  
                                                
38 The authorities indicated that they do not include among the definitive m easures imposed the 
measure concerning chicken legs and thighs imported from the United States. The final AD measure was 
imposed by the final resolution published in the Official Journal of 6  August  2012 as a result of a health alert, 
but this led to price -distorting effects and therefore it was decided not to apply the definitive AD duties until 
the situation had returned to normal, so as not to exaggerate their effect on the market.  WT/TPR/S/35 2 • Mexico  
 
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  3.55.   The number of new AD investigations initiated has fallen substantially since the peak 
recorded in 1993, when 83 investigations were initiated, but remains high. During the review 
period (up to November  2016), 34 new AD investigations were initiated, a level similar to that of 
1997-2001 and 2002 -2006 (41 a nd 42 fresh investigations respectively), but higher than the 
number of investigations initiated in 2007 -2011 (14).39 
3.56.   The origin of the imports covered by the new AD investigations during the period 
2012-November  2016 breaks down as follows: China (20), Uni ted States (3), Spain (2), India (2) 
and Republic of Korea (2). Investigations were also initiated into imports from Argentina, France, 
Germany, Portugal, and Chinese Taipei (one each).40 Chart 3.4 shows the number of 
AD investigations initiated by exporter  during the periods of this and the previous review, from 
1 January  2007 to 30  November  2016; broadly speaking, they coincide with those of the period 
2007-2012 as far as the origin of the imports under investigation is concerned, since China, the 
United S tates, India and the Republic of Korea are to be found in both periods.  
                                                
39 WTO document series G/ADP/N/*/MEX.  
40 WTO documents G/ADP/N/280/MEX of 2 2 February  2016; G/ADP/N/282 of 23  February  2016; 
G/ADP/N/283 of 24  March  2016; G/ADP/N/284 of 19  April 2016; G/ADP/N/285 of 31  May 2016; G/ADP/N/287 
of 23 June 2016; and Official Journal . Viewed at:  http://www.dof.gob. mx. WT/TPR/S/35 2 • Mexico  
 
- 59 - 
 
  Chart 3.3 Number of anti -dumping investigations and measures, by HS section  
0 10 20 30 40 50 60 70123456789101112131415161718192021
1 January 1995 - 30 June 2016
1 January 2012 - 30 June 2016Investigations
0 10 20 30 40 50 60 70123456789101112131415161718192021
1 January 1995 - 30 June 2016
1 January 2012 - 30 June 2016Measures
HS sections:
1 -Live animals
2 -Vegetable products
3 -Fats and oils
4 -Prepared foodstuffs
5 -Mineral products
6 -Chemical products 
7 -Plastics
8 -Hides and skins
9 -Wood
10 -Wood pulp, paper and paper board11 -Textiles
12 -Footwear
13 -Articles of stone
14 -Natural pearls
15 -Base metals
16 -Machinery and mechanical applicances
17 -Transport equipment
18 -Instruments
19 -Arms and ammunition
20 -Miscellaneous manufactured articles
21 -Works of art
 
Source:  WTO Secretariat.  WT/TPR/S/35 2 • Mexico  
 
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  Chart 3.4 Anti-dumping investigations initiated by exporter, 2007 -2016 (30  November)  
(Number of investigations)  
0123456789101112131415
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina Brazil China Chinese Taipei
France Germany India Portugal
Republic of Korea Spain United Kingdom United States
 
Source:  WTO Secretariat.  
3.57.   Roughly two thirds of the AD investigations initiated during the current period concerned 
iron and steel  industry products, above all steel and products and materials related with the steel 
industry. Half of these imports came from China and the other half from France, Germany, India, 
the Republic of Korea, Portugal, Spain, Chinese Taipei, and the United Sta tes. AD investigations 
were also initiated into imports of products such as epoxidized soya oil (Argentina), blenders for 
household and commercial use (China), ceramic dishware and loose articles (China), aluminium 
kitchenware (China), pencils (China), syn thetic fibre blankets (China), children's bicycles (China) 
and ammonium sulphate (China and the United States).  
3.58.   In comparison with the previous review, the duties applied also increased substantially. 
During the period January 2012 -November  2016, 33 provis ional duties and 33 definitive duties41 
were imposed, compared with 12 provisional and four definitive duties between 2007 and 2011. 
Five preliminary resolutions were issued without measures being imposed. Of the 34 definitive 
AD duties determined (one was not imposed) between 2012 and June  2016, 29 were the result of 
investigations initiated during that period and five were the result of investigations initiated 
previously. In two of the cases, definitive AD duties were not imposed despite provisional dutie s 
having been applied, and the latter were repealed at the conclusion of the investigation. These 
concerned imports of apples from the United States and of children's bicycles from China. In the 
latter case, however, a fresh AD investigation was initiated in 2014, which gave rise to the 
imposition of definitive duties in 2015. Three AD investigations initiated during the review period 
were ongoing in December  2016; they all led to the imposition of provisional duties. Chart 3.5 
shows the number of AD duties  imposed by exporting country over the period 
January  2007-November  2016.  
                                                
41 See footnote 38.  WT/TPR/S/35 2 • Mexico  
 
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  Chart 3.5 Definitive anti -dumping duties imposed by exporting country, 2007 -2016 
(30 November)  
(Number of duties)  
012345678910
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Argentina Brazil China France
Germany India Portugal Republic of Korea
Spain United Kingdom United States
 
Source:  WTO Secreta riat. 
3.59.   During the period between 2012 and November  2016, Mexico initiated 35 sunset reviews of 
AD measures, 20 of which were completed during this period. In the great majority of cases (16), 
the investigations led to renewal of the duties. In the course of  the review period, Mexico 
abolished the AD duties applied to imports of plastic pencil sharpeners from China (in 2012); cut 
bond paper and ammonium sulphate from the United States (in 2013); USP -grade liquid sorbitol 
from France (in 2014); carbon steel nu ts, black or coated, from China (in 2015); collapsible 
tubular aluminium containers from the Bolivarian Republic of Venezuela (in 2015); and synthetic 
polybutadiene -styrene rubber in emulsion from Brazil (in 2016).  
3.1.7.3   Countervailing measures  
3.60.   The countervailin g measures imposed during the review period concern products of the 
chemical or allied industries (HS Section VI). This differs from the trend in earlier years, when 
Mexico imposed definitive countervailing measures primarily on base metals and articles of  base 
metal (HS Section XV).  
3.61.   Mexico had three definitive countervailing measures in force at 30  November  2016, which 
concerned imports of medicaments from India. Two of these measures applied to antibiotics, and 
the third to imports of a medicament used fo r the treatment of high blood pressure (Table 3.9).  
Table 3.9 Definitive countervailing measures in force at 30  November  2016  
Country or customs territory  Product  Original date of imposition  
India  Metoprolol tartrate  26.07.2014  
Amoxicillin trihydrate  28.11.2012  
Dicloxacillin sodium  18.08.2012  
Source:  WTO document G/SCM/N/305/MEX of 2  September  2016.  
3.62.   The definitive countervailing duties on dicloxacillin sodium were imposed in August  2012 
and those on amox icillin trihydrate in November  2012. Both investigations were initiated in 2011 
and led to the imposition of provisional duties. The subsidies inves tigations concerning 
metoprolol  tartrate were initiated in August  2013. In February  2014 provisional counter vailing WT/TPR/S/35 2 • Mexico  
 
- 62 - 
 
  measures were imposed on imports from India and definitive duties were applied in July of that 
year.42 
3.1.7.4   Safeguard measures  
3.63.   Mexico did not have recourse to global safeguard measures during the review period. A 
safeguards investigation concerning impor ts of spiral -welded steel pipes and tubes, initiated in 
2010, was terminated in 2012 without imposition of any measure. This was the second global 
safeguards investigation initiated by Mexico since the creation of the WTO.43 
3.64.   Mexico has reserved the possibil ity of using the special safeguard measure provided for in 
the Agreement on Agriculture, but did not do so during the review period.  
3.65.   The Decision regulating the application of transitional safeguard measures for specific 
products originating in China expir ed on 11  December  2013.44 However, the authorities indicated 
that during the review period no transitional safeguard measure was applied to China.  
3.66.   Several of Mexico's trade agreements include provisions on global, bilateral and special 
safeguards, such as t he North American Free Trade Agreement (NAFTA) and the agreements with 
Japan, Central America, Peru and Panama. Mexico did not use bilateral safeguards in the period 
2012 to 30  November  2016.  
3.1.8   Technical regulations and standards  
3.67.   The Federal Law on Metrology  and Standardization (LFMN)45 and its implementing 
Regulations46 govern the Mexican System of Metrology, Standardization and Conformity 
Assessment (SISMENEC). The WTO Agreement on Technical Barriers to Trade (TBT Agreement) is 
also an integral part of Mexica n legislation. Mexican Official Standards (NOMs), which are 
mandatory at the point of entry, are listed in Decisions of the Ministry of Economy (SE).47 Under 
the Foreign Trade Law and the Customs Law, importers must demonstrate that goods comply with 
the NO Ms before goods can enter the country.  
3.68.   The National Standardization Commission (CNN) and the Directorate -General of Standards 
(DGN) are responsible for applying the law. The DGN remains the contact point for the TBT 
Agreement.48 The CNN is tasked with formu lating standardization policy and adopting the National 
Standardization Programme and its Supplement published each year in the Official Journal.49 
Through the National Advisory Committee on Standardization (CCNN), the DGN, in collaboration 
with other bodie s, prepares, reviews, modifies, repeals and issues both technical regulations and 
standards.  
3.69.    Mexico issues Mexican Official Standards (NOMs) (technical regulations) and Mexican 
Standards (NMXs) (standards). The Reference Standards (NRFs) (industrial or se ctoral standards) 
prepared by Petróleos Mexicanos (PEMEX) and the Federal Electricity Commission (CFE) ceased to 
                                                
42 See WTO documents in the series G/SCM/N/*/MEX.  
43 See WTO documents in the series G/SG/N/*/MEX.  
44 Decision on the Transitional Safeguard Mechanism contained in the Protocol of Accession of the 
People's Republic of China to the WTO (published in the Official Journal of 21  April 2005).  
45 Federal Law on Metrology and Standardization (published in the Official Journal of 1  July 1992; latest 
amendment published in the Official Journal of 18  December  2015).  
46 Regulations implementing the Federal Law on Metrology and Standardiza tion (published in the 
Official  Journal of 14  January  1999; latest amendment published in the Official Journal of 28  November  2012).  
47 Decision identifying tariff headings in the Tariff Schedule in the General Import  and Export Tax Law 
classifying goods subject to compliance with NOMs upon entry into and exit from Mexico (published in the 
Official Journal of 31  December  2012; latest amendment published in the Official Journal of 13  April 2016) or 
Annex 2.4.1, tariff h eadings in the Tariff Schedule in the General Import and Export Tax Law classifying goods 
subject to compliance with NOMs upon entry into and exit from Mexico (NOM Annex) (latest amendment 
published in the Official Journal of 1  April 2016). Viewed at:  
http://www.dof.gob.mx/nota_detalle.php?codigo=5266224&fecha=03/09/2012 . 
48 Online information viewed at: http://tbtims.wto.org . 
49 The la test National Standardization Programme was published in the Official Journal of 18  April 2016. 
Viewed at: http://www.dof.gob.mx/nota_detalle.php?codigo=5433410&fecha=18/0 4/2016 . WT/TPR/S/35 2 • Mexico  
 
- 63 - 
 
  be issued as of 2012.50 The NRFs are currently being reviewed with a view to converting them into 
NOMs or NMXs or repealing them. Since 2013, th e Federal Telecommunications Institute set up as 
a result of the constitutional reform issues "technical provisions" for the telecommunications and 
broadcasting sector. These "technical provisions" are mandatory on the domestic market, but for 
them to appl y in the case of imports the SE has to issue a NOM based on the relevant "technical 
provision".  
3.70.    There has been no change to the procedure for preparing, issuing or revising NOMs since 
the previous review (Chart 3.6).  
Chart 3.6 Procedure for the preparation of a NOM  
 
a The CCNN consists of public and private sector individuals and bodies.  
b The MIR includes, inter alia , a description of the standard, its characteristics, its advantag es and 
disadvantages and its costs and benefits in monetary terms.  
c The comments and amendments (if any) are published in the Official Journal.  
Source:  WTO Secretariat, on the basis of the LFMN.  
3.71.   Technical regulations (NOMs) are compiled in the Decisions; in addition, the DGN keeps a 
catalogue of NOMs.51 In cases of emergency, the competent agency may draw up a NOM directly, 
without the need for a preliminary draft or a draft.52 Emergency NOMs remain valid for a maximum 
of six months and may be renewed for a further six months (Article 48 of the LFMN).  
3.72.   NOMs have to be reviewed every five years as of their entry into force. Following this 
review, the NOM may be renewed for a further five years, modified or cancelled. This decision 
must be notified to the CNN wi thin 60 days of the end of the five -year period. If no such 
notification is made, the NOM ceases to have effect and the agency that issued it must publish its 
annulment in the Official Journal (Article 51 of the LFMN).  
3.73.   Over the period 2012 -2016 (November),  218 draft NOMs we re published in the 
Official  Journal, of which 135 became NOMs, 81 remained at the draft stage and two were 
annulled. During the same period, 217 NOMS were published in the Official Journal, of which 151 
do not coincide with international  standards, 38 coincide partially and 28 coincide fully.  
                                                
50 Online information from the Ministry of Economy . Viewed at:  http://www.2006 -
2012.economia.gob.mx/comunidad -negocios/normalizacion/cat alogo -mexicano -de-normas . 
51 The NOMs Catalogue can be viewed at: http://www.economia -noms.gob.mx/noms/inicio.do . These 
catalogues were viewed in August  2016.  
52 Unexpected events that affect or threaten the objectives laid down by the LFMN (the safety of 
persons, human, animal or plant health, the environment and working conditions, or the conservation of 
natural resources, inter alia ) are deemed to be emergencies (Articles 40 and 48 of the LFMN) . Stage 0  
National Standardization 
Programme (and  its 
Supplement)  published 
in the Official Journal  
Stage 4  
Draft NOM published 
in Official Journal and 
notified to WTO  Stage 1  
Preliminary draft NOM 
prepared (Ministries)  Stage 2  
Preliminary draft NOM submitted to National 
Advisory Committee on Standard ization 
(CCNN)a, together with a statement of 
regulatory impact (MIR)b 
Stage 5  
CCNN analyses 
comments and if 
necessary amends draft 
NOM (45 days)c 
 Stage 3  
CCNN prepares 
draft NOM  
  
Stage 6  
CCNN adopts NOM, 
which is published in the 
Official  Journal and  
enters into force  Stage 7  
NOM is  reviewed  Public 
consultation  
(60 days)  
 
5 years  WT/TPR/S/35 2 • Mexico  
 
- 64 - 
 
  3.74.   Between the start of 2012 and 31  July 2016, Mexico notified to the WTO 108 technical 
regulations or draft technical regulations, of which 12 concerned conformity assessment 
procedures and eight were emergency NOMs.53 The emergency measures concerned: design, 
construction, safety, operation and maintenance of systems for storing liquefied petroleum gas; 
biotechnology medicines and their biopharmaceuticals; equipment for connection or 
interconnection wit h a public telecommunications network; quality specifications for 
petrochemicals; pollution emission levels for motor vehicles; and test methods and parameters for 
the operation, maintenance and efficiency of gasoline (petrol) vapour recovery systems at se rvice 
stations selling petrol to the public.54 
3.75.   Both domestic and imported products must comply with the relevant NOMs. To import a 
product subject to a NOM, a NOM certificate or authorization issued by the competent agency or 
an accredited certification bod y has to be obtained (Article 53 of the LFMN). These procedures are 
currently carried out through the Digital Window (Article 36 of the Customs Law as amended 
in 2013).  
3.76.   Where products or services that are required to comply with a specific NOM do not meet the 
corresponding specifications, the competent authority must immediately prohibit their marketing 
and immobilize the products until they are brought into conformity, reprocessed, repaired or 
replaced. If this cannot be done, the necessary measures will b e taken to ensure that they are not 
used. Imported products that do not comply with the requirements of a NOM or which are not 
accompanied by the required certificates must be placed in an in -bond facility until the importer 
has rectified the situation. Ot herwise, the Customs will prohibit importation. If the product or 
service is already on the market, the traders or suppliers cannot market it.  
3.77.   Mexican Standards (NMXs) serve as a reference and are voluntary. They are prepared by a 
national private standard ization body or by the DGN. In 2016, Mexico had ten national 
standardization bodies (ONNs) registered with the SE.55 The standards may not contain 
specifications lower than those set out in NOMs (Articles 51A and 54 of the LFMN). The DGN also 
keeps a catalo gue of NMXs.56 
3.78.   As in the case of NOMs, NMXs must be included in the National Standardization Programme, 
be based on international standards (except where these are unsuitable) and have the consensus 
of the sectors taking part in the corresponding advisory c ommittee. NMXs must be published by a 
notice in the Official Journal for public consultation for a period of at least 60 days before being 
published in their final version as NMXs. The procedure for the revision, updating or cancellation of 
NMXs is the sam e as for their preparation. As in the case of NOMs, NMXs must be reviewed or 
updated within five years from their entry into force (Article 51 -A of the LFMN). If the results of 
the review or updating are not notified to the CNN, the latter will order the N MX to be annulled. 
The SE, ex officio at the request of another agency, may also issue an NMX in the case of areas 
                                                
53 This figure excludes Addenda/Corrigenda and Supplements to the notifications. Viewed at: 
http://tbtims.wto.org . 
54 WTO documents G/TBT/N/MEX/227 of 29  March  2012; G/TBT/N/MEX/242 of 1  October  2012; 
G/TBT/N/MEX/287 o f 16 March  2015; G/TBT/N/MEX/299 of 25  January  2016; G/TBT/N/MEX/300 of 
28 January  2016; G/TBT/N/MEX/312 of 14  June 2016; G/TBT/N/MEX/315 of 5  July 2016; and 
G/TBT/N/MEX/332 of 16  November  2016.  
55 These are: the Sociedad Mexicana de Normalización (NORMEX) (Mexican Standardization Society); 
Instituto Mexicano de Normalización y Certificación (IMNC) (Mexican Institute for Standardization and 
Certification); Asociación de Normalización y Certificación (ANCE) (Standardization and Certification 
Association); Ins tituto Nacional de Normalización Textil (INNTEX) (National Institute of Textiles 
Standardization); Organismo Nacional de Normalización y Certificación de la Construcción y Edificación 
(ONNCCE) (National Standardization and Certification Body for Constructi on and Building); Normalización y 
Certificación Electrónica (NYCE) (Electronic Standardization and Certification); Consejo para el Fomento de la 
Calidad de la Leche y sus derivados (COFOCALEC) (Quality Promotion Council for Milk and Dairy Products); 
Centro  de Normalización y Certificación de Productos (CNCP) (Product Standardization and Certification 
Centre); Cámara Nacional de la Industria del Hierro y del Acero (CANACERO) (Mexican Iron And Steel Industry 
Chamber); and Organismo Nacional de Normalización d e Productos Lácteos, A.C. (ONNPROLAC) (National 
Standardization Body for Dairy Products, A.C.). Online information from the SE . Viewed at:  http://www.2006 -
2012.economia.gob.mx/comunidad -negocios/normalizacion/nacional/procesos -de-normalizacion/organismo -
nacionales . 
56 The NMXs Catalogue can be viewed at: http://www.economia -nmx.gob.mx/normasmx/index.nmx . 
These catalogues were viewed in August  2016.  WT/TPR/S/35 2 • Mexico  
 
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  not covered by the national standardization bodies or where the standards issued by the latter do 
not reflect the interests of the sectors in volved (Article 51 -A of the LFMN).  
3.79.   Conformity assessment procedures are drawn up by the competent Ministries, following 
consultation with interested parties and in accordance with the LFMN, its implementing Regulations 
and international guidelines, as was also the case in 2012. Once finalized, the procedures are 
published in the Official Journal, initially for public comment and then in final form (Articles 73 of 
the LFMN and 80 of its implementing Regulations).  
3.80.    Conformity assessment of NOMs is carried out  by the competent authorities or accredited 
private entities. The assessors (for example, certification bodies, test laboratories, calibration 
laboratories and verification units) assess conformity by means of visual inspection, sampling, 
measurement, labo ratory tests or document checks.57 Since 2014 one of the competent bodies has 
been the Federal Telecommunications Institute. The SE keeps a list of authorized accreditation 
bodies and accredited persons, by standard, subject, sector or branch, as well as a list of the 
national standardization bodies and international bodies recognized by the Mexican Government.  
3.81.   For the conformity assessment of NOMs and of technical provisions relating to 
telecommunications and broadcasting, conformity assessors must be accre dited by the Mexican 
Accreditation Entity (EMA).58 The EMA accredits testing laboratories, calibration laboratories, 
clinical laboratories, verification units (inspection agencies) and certification bodies, proficiency 
test providers and greenhouse gas vali dation/verification bodies (GHG VVBs). These entities may 
be certification bodies, verification units and test or calibration laboratories (Articles 53 y 68 of the 
LFMN). Besides being accredited by the EMA, such entities must be approved by the competent 
authority in order to operate (Articles 68 and 69 of the LFMN).  
3.82.    The competent authorities may establish official marks denoting conformity assessment of 
NOMs and, where required, of NMXs. Products or services subject to NOMs and NMXs may 
voluntarily displ ay these official marks. However, the relevant authorities may also require that 
specific products should obligatorily carry these marks, in which case the competent authority, or 
persons accredited and approved by it, will be responsible for the conformit y assessment.  
3.83.    Mexico has mutual recognition agreements (MRAs) with bodies in Canada; China; 
Colombia; Hong Kong, China; the Netherlands; Norway; Sing apore; Thailand; and the 
United  States. In addition, the EMA has MRAs with various international forums. ( Table 3.10).59 
Table 3.10 EMA mutual recognition agreements  
Body  Accreditation  
International Laboratory 
Accreditation Cooperation (ILAC)  Calibration and testing laboratories  
Asia-Pacific Laboratory Accredita tion 
Cooperation (APLAC)  Verification units and testing, calibration and clinical laboratories (2007), 
proficiency test providers (2014) and reference material producers (2016)  
International Accreditation Forum 
(IAF) Certification bodies for quality manag ement (2001), environmental 
management 2004), product certification (2004), and food safety (2015) 
systems  
Pacific Accreditation Cooperation 
(PAC)  Certification bodies for quality management (2001), environmental 
management (2004), product (2004), food sa fety (2014) and greenhouse gas 
validation/verification (2014) systems  
Inter-American Accreditation 
Cooperation (IAAC)  Certification of quality management systems (2002), accreditation of product 
certification bodies (2008), environmental management system s (since 2008), 
accreditation of testing, calibration and clinical laboratories (since 2009), 
accreditation of verification units (since 2010) and accreditation of food safety 
certification bodies (2016)  
Source:  Online information from the EMA, viewed at:  
http://www.ema.org.mx/portal/index.php/Reconocimiento -Internacional/reconocimientos -
internacionales.html . 
                                                
57 Article 70 of the LFMN specifies the terms and conditions of approval of certification bodies.  
58 Online information from the EMA . Viewed at:  
http://www.ema.org.mx/portal/index.php/Ema/ema.html . 
59 Online information viewed at: http://www.ema.org.mx/portal/index.php/Reconocimiento -
Internacional/reconocimientos -internacionales.html . WT/TPR/S/35 2 • Mexico  
 
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  3.1.9   Labelling and marking  
3.84.   The NOM  establishing the requirements for general labelling of products was not amended 
during the period under review.60 Pursuant to this NOM, any Mexican or imported product to be 
sold in Mexico must bear a label in Spanish providing commercial information on th e product, 
together with instructions and guarantees (Section 5.3 of NOM -050-SCFI-2004). The requirements 
set out in this NOM are mandatory for all products, with the exception of: (a) products subject to 
commercial information requirements contained in ot her NOMs; (b) products in bulk; (c) live 
animals; (d) books and other publications, magnetic and compact discs, tapes and similar articles, 
and other audio -visual products; (e) spare parts bought from catalogues and identified by the 
number of the part or a code; and (f) other products as determined by the competent authority 
(Section 2.2 of NOM -050-SCFI-2004). In addition to this general NOM, there are NOMs concerning 
labelling and commercial information requirements for specific products (Table 3.11).  
Table 3.11 Products subject to specific labelling or packaging requirements, 2016  
Product  Number of 
tariff lines 
(8 digits)  Official standard  Publication in 
the Official 
Journal/  
amendment  
Textiles, clothing and  their accessories, and 
household linen  1,191  NOM-004-SCFI-2006 21/06/2006  
Products in general  825 NOM-050-SCFI-2004 01/06/2004  
Electronic, electrical and household electrical 
appliances  397 NOM-024-SCFI-2013 12/08/2013  
Pre-packaged foods and non -alcoho lic beverages  375 NOM-051-SCFI/SSA1 -2010 05/04/2010/  
14/08/2014  
Toys 293 NOM-015-SCFI-2007 17/04/2008  
Leather articles, natural tanned hides and 
synthetic or artificial materials of the same 
appearance  189 NOM-020-SCFI-1997 27/04/1998  
Alcoholic beverage s 28 NOM-142-SSA1/SCFI -2014 23/03/2015  
Paints, colours, varnishes, lacquers and enamels  26 NOM-003-SSA1 -2006 04/08/2008  
Pre-packaged perfumery and cosmetic products  19 NOM-141-SSA1/SCFI -2012 19/09/2012/  
14/02/2014  
Natural vanilla extract, derivatives an d 
substitutes  8 NOM-139-SCFI-2012 10/07/2012  
Pre-packaged tuna and bonito products  8 NOM-084-SCFI-1994 22/09/1995  
Flame retardants and/or inhibitors and/or 
fireproof products  
Medication and herbal remedies  
Food and non -alcoholic beverages for infants and  
young children  
Medical devices  
Plant nutrients  5 NOM-055-SCFI-1994 
NOM-072-SCFI-2012 
NOM-131-SCFI-2012 
 
NOM-137-SCFI-2008 
NOM-182-SCFI-2010 08/12/1994  
Lubricating oils for petrol or diesel engines  3 NOM-116-SCFI-1997 04/05/1998  
Household cleaning produ cts 46 NOM-189-SSA1/SCFI -2002 02/12/2002  
Masa dough, tortillas, tostadas and ready -mixed 
flours  2 NOM-187-SSA1/SCFI -2002 18/08/2003  
Pesticides  n/a NOM-232-SSA1 -2009 13/04/2010/  
04/04/2012  
Iodized salt and fluoridated iodized salt  n/a NOM-040-SSA1 -1993 31/12/2010/  
26/12/2012  
n/a: Not applicable.  
Source:  WTO Secretariat, on the basis of information available at:  http://www.economia -
noms.gob.mx/noms/inicio.do . 
3.85.   The importer is responsible for en suring that the goods include the commercial information 
required by the NOMs. In general, importers do not need a certificate establishing that the 
commercial information has been verified, except where there is a high sanitary, plant or animal 
health, sa fety or consumer protection risk. In such cases the competent authority may require a 
laboratory analysis to check the truthfulness of the information provided for the product (Article 50 
of the Regulations implementing the LFMN).  
                                                
60 Mexican Official Standard on commercial information –general labelling of products 
(NOM -050-SCFI-2004), published in the Official Journal of 1  June 2004. Viewed at: 
http://www.dof.gob.mx/nota_detalle.php?codigo=708514&fecha=01/06/2004 . WT/TPR/S/35 2 • Mexico  
 
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  3.1.10   Sanitary and phytosanitar y measures  
3.86.   The principal legislation governing the drafting and implementation of sanitary and 
phytosanitary measures has not changed substantially since 2012, although some modifications 
have been introduced concerning, for example, the competence of the various institutions. In 
addition, the Regulations implementing the Federal Plant Health Law were issued during the period 
covered by this review. The products subject to animal health requirements as well as the various 
requirements themselves are publish ed in a number of Decisions (modules), some of which have 
been amended to take account of changes in the Harmonized System (HS) nomenclature 
(Table  3.12).  
Table 3.12 Principal legal instruments governing the s anitary and phytosanitary system, 
2016  
Legislation  Publication in the Official 
Journal  Latest amendment 
published in the Official 
Journal  
Federal Law on Metrology and Standardization (LFMN)  1 July 1992 18 December  2015 
Regulations implementing the Federa l Law on Metrology 
and Standardization  14 January  1999 28 November de 2012  
Federal Plant Health Law  5 January  1994 16 November  2011 
Regulations implementing the Federal Plant Health Law  15 July 2016  
Federal Animal Health Law  25 July 2007 7 June  2012 
Regulations implementing the Federal Animal Health Law  21 May 2012  
General Law on Health  7 February  1984 10 May 2016 
General Law on Sustainable Forestry Development 
(LGDFS)  25 February  2003 10 May 2016 
Law on Biosafety of Genetically Modified Organisms   18 March  2005   
Regulations implementing the Law on Biosafety of 
Genetically Modified Organisms  19 March  2008 6 March  2009 
Regulations for the sanitary control of products and 
services  9 August  1999 12 February  2016 
Regulations for health inputs  4 February  1998 14 March  2014 
Regulations implementing the General Law on Sustainable 
Forestry Development (LGDFS)  21 February  2005 31 October  2014 
General Law on Sustainable Fishery and Aquaculture  24 July 2007  4 June 2015 
Law on Organic Products  7 Febru ary 2006  
Regulations implementing the Law on Organic Products  1 April 2010 8 April 2010  
Source:  WTO Secretariat on the basis of information provided by the Mexican authorities.  
3.87.   The bodies responsible for drafting and implementing sanitary and phytosani tary measures 
remain the same as in 2012 (Table 3.13).  
Table 3.13 Bodies responsible for the sanitary system, 2016  
Body  Function  
National Agrifood Health, Safety and 
Quality Service (SENASICA)  Implements and  monitors compliance with the provisions on agrifood 
health, safety and quality in connection with plant, animal, fishery and 
aquaculture products and by -products.  
Issues NOMs, decisions and other legal provisions in order to prevent, 
control and combat pe sts and diseases that affect plant, animal, 
aquaculture and fishery species.  
Determines the requirements, quarantine regulations and sanitary safety 
measures.  
Protects agricultural, aquaculture and livestock resources from pests and 
diseases of quarantine and economic importance.  
Regulates and promotes the implementation and certification of risk 
reduction systems for food contamination and agrifood quality.  
Federal Commission for Protection 
against Health Risks (COFEPRIS) 
(attached to the Ministry of Hea lth)  Applies, oversees and certifies implementation of the provisions relating to 
the healthiness of products for human use and consumption (for example: 
food, beverages, medicaments, cosmetics, cleaning products, tobacco, 
pesticides, additives and plant nutrients).  
Applies and oversees implementation of the health provisions relating to 
the export and import of products for human use and consumption.  
Drafts and issues NOMs.  
Ministry of the Environment and Natural 
Resources (SEMARNAT)  Responsible for na tional forest health policy.  
Issues NOMs on forestry and the soil.  
Issues phytosanitary documents needed for the movement, import or 
export of regulated forest products and by -products.  WT/TPR/S/35 2 • Mexico  
 
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  Body  Function  
Interministerial Commission on Biosafety 
and Genetically Modified Org anisms 
(CIBIOGEM)  Responsible for coordinating policy on the production, consumption, 
import, export and movement of genetically modified organisms (GMOs).  
Source:  General Law on Health (published in the Official Journal of 7  February  1984; latest amendm ent 
published in the Official Journal of 10 May 2016). Regulations of the Federal Commission for 
Protection against Health Risks (published in the Official Journal of 13  April 2004). Viewed at: 
http://senasica.gob.mx . 
3.88.   In 2012, the National Advisory Committee on Agrifood Standardization (CCNNA) was 
established under the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food 
(SAGARPA), and the previously existing Committees for plant and animal health protection were 
merged to create a single Committee.61 The CCNNA is assisted by various specialized 
sub-committees for issuing NOMs, namely: the Animal Health Protection Sub -Committee, the Plant 
Health Protection Sub -Committee, the Responsible Fisheries Sub -Committee, and the Biosafety, 
Organic and Bioenergy Products Sub -Committee, as well as ad hoc  specialized sub -committees 
that assist the CCNNA as necessary. These sub -committees closely monitor needs in terms of 
standardization relating to health, quality  and safety in the domestic and export agrifood markets. 
The National Advisory Committee on Environmental and Natural Resource Standardization 
(COMARNAT) prepares NOMs on forestry issues.62 
3.89.   Mexico is a member of the Codex Alimentarius Commission (FAO/WHO), the World 
Organisation for Animal Health (OIE) and the International Plant Protection Convention (IPPC). It 
also participates in regional sanitary protection bodies such as the North American Plant Protection 
Organization (NAPPO) and the International Regi onal Organization for Plant and Animal Health 
(OIRSA). The SE's Directorate -General of Standards is the national enquiry point designated by 
Mexico in connection with the WTO Agreement on the Application of Sanitary and Phytosanitary 
Measures (SPS Agreemen t).63 
3.90.   The policy on plant and animal health and GMOs seeks to reduce risks for agricultural and 
forestry production and public health, boost productivity in the sectors and facilitate domestic and 
international marketing of these products. To this end, meas ures and programmes are 
implemented to prevent pests and diseases from entering Mexico and to control and eradicate 
those that exist in the country, and to accredit, both nationally and internationally, the sanitary 
quality of domestic and imported product s and products containing GMOs.  
3.91.   According to the authorities, phytosanitary and zoosanitary requirements are based on 
scientific principles and/or international recommendations and, as appropriate, on risk analysis 
according to the plant and/or animal heal th situation of the geographical areas concerned as well 
as of adjoining areas and areas with which there are trade flows.  
3.92.   Sanitary or phytosanitary measures in Mexico are established by means of a Mexican Official 
Standard (NOM) or Decisions containing th e modules for consultation of the phytosanitary and 
zoosanitary import requirements, including those for forestry products.64 The Decisions establish 
the classification and coding of goods subject to requirements, specify the goods and indicate 
those that m ust undergo inspection at the point of entry. Wildlife species and their products and 
forest products must undergo physical inspection when entering Mexican territory. The physical 
inspection of forest products is conducted in accordance with the procedure  laid down in the 
corresponding NOM. Shipments of other products are checked in accordance with the risk that 
each product or shipment represents or on the basis of the physical inspection requirements 
established as a result of a pest risk analysis. Goods  subject to plant or animal health 
requirements must also come from authorized countries that have sanitary services recognized 
by SAGARPA.  
                                                
61 Decision issuing the Rules for the creation, membership, organization and operation  of the National 
Advisory Committee on Agrifood Standardization of the Ministry of Agriculture, Livestock, Rural Development, 
Fisheries and Food (published in the Offic ial Journal of 26  November  2012).  
62 Online information viewed at: http://www.gob.mx/semarnat/acciones -y-programas/comites -del-
sector -medio -ambiente -y-programa -nacional -de-normalizacion . 
63 Online information fro m the WTO . Viewed at:  http://spsims.wto.org . 
64 Online information from the SE . Viewed at:  http://www.economia -noms.gob.mx/noms/inicio.do . WT/TPR/S/35 2 • Mexico  
 
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  3.93.   The procedure for the preparation of NOMs for plant and animal health, fisheries, biosafety 
and food safety matters is the same as for other NOMs. Each sub -committee prepares the 
preliminary drafts, drafts and replies to comments on the NOMs in its area of competence and 
submits them for consideration by the CCNNA. Interested parties may also present proposals for 
preliminary drafts of NOMs in these fields. The CCNNA carries out the corresponding evaluation 
and as appropriate submits the draft project for consideration by the appropriate sub -committee. 
The CCNNA reviews NOMs every five years or earlier, in order to updat e them in line with scientific 
and technological progress and animal health campaigns. In emergency cases, the Ministry 
concerned may directly prepare, with the participation of the other competent bodies, an 
emergency NOM without the need for a preliminar y draft or a draft. Emergency NOMs are valid for 
six months and may be renewed for a further six months.  
3.94.   At November  2016, Mexico had 75 NOMs relating to animal and plant health in force, 35 of 
which concerned animal health, 28 plant health, eight food saf ety and four forestry health.65 In 
addition, at that date there were other NOMs issued by COFEPRIS concerning food and/or 
beverages related with Good Manufacturing Practice (GMP), including the Hazard Analysis and 
Critical Control Points system (HACCP).66 
3.95.   Between 1  January  2012 and 30  November  2016, Mexico notified 76 sanitary and 
phytosanitary measures to the WTO, of which only one was an emergency measure.67 Mexico 
imposed this emergency measure - for the temporary suspension of imports of shrimp (of the 
species Peneaus monodon  and Litopenaeus vannamei ) in any form of presentation coming from 
China, Malaysia, Thailand and Vietnam - on animal health grounds.68 Most of the regular 
notifications (58) concerned measures adopted on plant health grounds, followed by  measures to 
safeguard human health, in particular with regard to food safety (28), with a limited number of 
measures on animal health (7).69 The plant health measures affected in particular products from 
Turkey (7) and the United States (5).  
3.96.   At the point o f entry into the country, importers of agricultural products must demonstrate 
to SAGARPA's Directorate -General of Plant and Animal Health Inspection (DGIF), or in the case of 
forest products SERMANAT's Federal Environmental Protection Agency (PROFEPA), tha t the 
imported goods comply with the requirements. If so, the competent authority grants the 
corresponding certificate or verification record, in the case of forest products. Previously, a 
documentary and/or physical inspection of imports was carried out t o verify compliance with the 
requirements, but since 2013, with the introduction of the Digital Window, only physical inspection 
is conducted.70 Moreover, since 2012, in order to facilitate and streamline the procedure for issuing 
import (export) certificat es of goods of agricultural, livestock, aquaculture or fisheries origin, the 
person concerned may request such certificates electronically, using the advanced electronic 
signature, via the Digital Window or the SENASICA web page. These requests can also be  made 
in person.71 
3.97.   Importers of products that may involve a risk to human health must present, together with 
the import declaration, the sanitary authorization prior to importation72, a certificate of free sale 
issued by the country of origin and, where appr opriate, entry authorizations, the sanitary import 
notification or copy of the sanitary registration; where relevant, they must also prove compliance 
                                                
65 The NOMs on anim al health, plant health and food safety can be viewed at: 
http://senasica.gob.mx/?id=1050  and the NOMs on forestry products at: 
http://www.ccmss.org.mx/documentacion/legislacion -forestal -mexicana -leyes-y-normas -federales . 
66 Online information from COFEPRIS . Viewed at:  
http:/ /www.cofepris.gob.mx/MJ/Paginas/NormasPorTema/Alimentos.aspx . 
67 WTO database . Viewed at:  http://www.spsims.wto.org . 
68 WTO document G/SPS/N/MEX/236 of 26  April 2013.  
69 Some of the notified measures concern both ani mal and plant health, which explains why the sum of 
these figures is greater than the number of notifications.  
70 Article 11 of the Decision determining the classification and coding of goods whose import or export is 
subject to regulation by the Ministry o f Agriculture, Livestock, Rural Development, Fisheries and Food through 
the National Agrifood Health, Safety and Quality Service (published in the Official Journal of 
3 September  2012; latest amendment published in the Official Journal of 18  July 2016). On line information 
viewed at: https://www.gob.mx/cms/uploads/attachment/file/23058/A766.pdf . 
71 Decision setting out the procedure for electronically obtaining the import and export certificates for 
agricultural, livestock, aquaculture and fishery products (published in the Official Journal of 9  August  2012).  
72 In order to obtain this permit importers must prove that the goods comply with the requirements 
sheet (in other words the san itary measure).  WT/TPR/S/35 2 • Mexico  
 
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  with labelling requirements. Importers of these products must, moreover, be domiciled in 
Mexico.73 For prod ucts that do not require a prior import permit (non -automatic import licence), a 
sanitary certificate issued by the competent authority in the country of origin has to be submitted 
and the Ministry of Health has to be notified of the entry and destination of the goods.  
3.98.    Compliance with the plant and animal health requirements does not exempt the importer 
from the obligation to obtain the permits required by other Ministries. Most goods subject to 
sanitary regulation also require non -automatic import licence s (prior permits).74 
3.99.   Import certificates for goods such as plants, animals or aquaculture and fishery species are 
valid for eight days from the date of issue and cover movement through the national territory to 
the final destination of the goods. In the eve nt of a pest or disease that threatens the health of 
domestic plants, animals or aquaculture and fishery species, import health certificates may be 
cancelled and the necessary safety measures will be taken (Table 3.14).  
Table 3.14 Import certificates, 2016  
Product  Body  Document  Legislation  
Products of plant 
origin  SENASICA  Phytosanitary 
import (export) 
certificate  Decision establishing the module of phytosanitary 
requirements for the import of goods regulated by SAGARPA 
with respect to plant health  
Decision establishing the classification and coding of goods 
whose import is subject to regulation by SAGARPA, through 
SENASICA  
Decision setting out the procedure for electronically 
obtaining the import or export cer tificates for agricultural, 
livestock, aquaculture and fishery products  
Products of animal 
origin  SENASICA  Animal health 
import (export) 
certificate  Decision establishing the means for consultation of the 
requirements for import into the national territor y of goods 
regulated by SAGARPA with respect to animal health  
Decision setting out the procedure for electronically 
obtaining the import or export certificates for agricultural, 
livestock, aquaculture and fishery products  
Products that involve 
risks for aquaculture 
or fishery health  SENASICA  Aquaculture 
health import 
(export) 
certificate  Decision establishing the module of sanitary requirements 
for the import of aquatic species, their products and 
by-products, and biological, chemical, pharmaceutical or 
food products for use or consumption by such species  
Wildlife species and 
their products, and 
forest products  SEMARNAT - 
PROFEPA  Verification 
record  Decision amending the decision establishing the 
classification and coding of goods whose import and export 
is subject to regulation by the Ministry of the Environment 
and Natural Resources  
Products involving a 
risk to human healtha Ministry of 
Health or 
COFEPRIS  Sanitary 
authorization 
prior to 
importation  Decision establishing the classification and coding of  goods 
and products whose import, export, inward clearance or exit 
are subject to sanitary regulation by the Ministry of Health  
Genetically modified 
organisms  SAGARPA or 
SEMARNAT  Authorization 
certificate  Law on Biosafety of Genetically Modified Organisms   
a For example, medicines, foodstuffs, beverages, perfumery, cosmetic and cleaning products, tobacco, 
pesticides, plant nutrients, biotechnology products, raw materials and additives used to prepare the 
aforementioned products, substances that are toxic or hazardous to health, and food supplements.  
Source:  WTO Secretariat.  
3.100.    Where import requirements for products of plant, aquaculture or fisheries origin are not 
specified in a NOM or Decision, the importer has to contact SENASICA or, in the case of forest 
products, SEMARNAT. These bodies will indicate whether: (a) requirements exist; (b) the entry of 
the product is prohibited for health reasons; or (c) whether a risk analysis is required.75 In the 
case of products of animal origin, where the requirements are  not specified in a NOM or a 
consultation module, the importer must contact SENASICA, which will, as the case may be: 
                                                
73 Article 285 of the General Law on Health (published in the Official Jou rnal of 7  February  1984; 
latest  amendment published in the Official Journal of 1  June 2016).  
74 WTO document G/LIC/N/3/MEX/2 of 18  October  2006.  
75 Consulta de Medidas d e Sanidad Acuícola a la  Dependencia  (Consultation of Aquaculture Health 
Measures at the competent authority). Online information from SENASICA . Viewed at:  
http://www.senasica.gob.m x/?proceso=formulario&Idformulario=4 . WT/TPR/S/35 2 • Mexico  
 
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  (a) indicate that there are no animal health requirements or determine whether a technical or risk 
analysis is required; or (b) indicate t hat the goods are subject to specific requirements.76 
3.101.   The Interministerial Commission on Biosafety and Genetically Modified Organisms 
(CIBIOGEM) is responsible for establishing policies on biotechnology safety and the safe use of 
genetically modified organi sms (GMOs).77 These activities are governed by the Law on Biosafety of 
Genetically Modified Organisms of 2005 and its implementing Regulations.78 After evaluating the 
studies submitted by the interested parties concerning an activity involving the use of GMO s, 
CIBIOGEM determines whether the activity may take place. The import of GMOs for experimental 
release into the environment requires a permit issued by SAGARPA or SEMARNAT, after a risk 
analysis has been conducted. Subsequent imports do not require new pe rmits, provided they 
concern the same GMO and the same area of release into the environment. The marketing or 
import of GMOs intended for human use or consumption or for processing of foods for human 
consumption also requires authorization by the Ministry of Health. After evaluating the technical 
studies presented by the interested parties, the Ministry of Health decides whether the activity 
may be carried out. In 2014, Mexico established general labelling requirements for GMOs, 
specifically seeds or plant material, for use in agricultural production.79 
3.102.   In order to ensure safety in food production processes, Mexico uses NOMs and NMXs that 
refer to various rules such as the Hazard Analysis and Critical Control Points system (HACCP), 
which specify the minimum r equirements for good hygiene practices that must be observed in the 
production process for foods, beverages or food supplements and their raw materials in order to 
avoid contamination throughout the process.  
3.103.   The authorities continue to use public and priva te certification bodies, verification units, 
test laboratories and specialists approved by SENASICA or authorized by COFEPRIS for conformity 
assessment. However, in the case of forestry matters SEMARNAT -PROFEPA carries out conformity 
assessment directly th rough the Forestry Health Analysis and Reference Laboratory and does not 
have recourse to third -party agencies.  
3.104.   Mexico has signed bilateral agreements on animal and plant health with other countries in 
order to facilitate trade in specific products and ens ure that procedures in this field are 
harmonized. In addition, Mexico has programmes under which other countries recognize certain 
areas of the country as disease and pest free.  
3.2  Measures directly affecting exports  
3.2.1   Registration and documentation  
3.105.   There have been no major changes to export requirements since the previous review. The 
most important development has been the computerization of customs procedures using the 
Mexican Digital Window for Foreign Trade (Digital Window), and applications to export and al l 
related documents, as well as certain export licences (permits), can be processed through its 
website.  
3.106.   In Mexico, exporters must be listed in the Federal Register of Taxpayers (RFC) in order to 
be able to issue electronic invoices, apply for certificate s and/or permits or complete export 
formalities, obtain refunds, tax rebates or certain benefits under government programmes. 
Registration is required in order to obtain the advanced electronic signature (FIEL) needed to use 
Digital Window applications and  can be effected through the Internet. In addition, exporters of the 
following products must also be enrolled in the SAT's Register of Exporters in Specific Sectors: 
denatured alcohol and non -crystallized honey, beer; tequila, spirits, wine, cigars and pro cessed 
                                                
76 Online information viewed at: http://www.gob.mx/cntse -
rfts/tramite/ficha/5654c7b38217e6599400055f . 
77 Online information from the Nat ional Science and Technology Council (CONACYT) . Viewed at:  
http://conacyt.gob.mx/cibiogem/index.php/cibiogem/acerca -de-la-cibiogem . 
78 Regulations implementing the Law on  Biosafety of Genetically Modified Organisms (published in the 
Official Journal of 19  March  2008; latest amendment published in the Official Journal of 6  March  2009).  
79 NOM-001-SAG/BIO -2014 (published in the Official Journal of 30  December  2014). Online in formation 
from SENASICA . Viewed at:  http://senasica.gob.mx/?id=1051 . WT/TPR/S/35 2 • Mexico  
 
- 72 - 
 
  tobacco; energy drinks together with concentrates, powders and syrups used to prepare energy 
drinks; iron ores and their concentrates, and products of gold, silver or copper.  
3.107.   SAT-authorized exporters may complete customs clearance procedures themsel ves, but for 
other exporters, customs brokers are authorized by the customs authority to undertake the 
clearance of goods on behalf of natural or legal persons and to submit the export information 
required using the customs computer system. Exporters certi fied as "authorized economic 
operators" may use the "FAST" tracks available in certain customs offices.  
3.108.   Export applications, together with the various substantiating documents in electronic form, 
must be forwarded to the customs electronically, either by t he exporters themselves or through a 
customs broker, using the Digital Window. The following are the principal documents required for 
exports: the transport document, the commercial invoice or electronic proof of value (COVE), the 
packing list, the customs  document and certificates showing the quality and quantity of the goods. 
An export application is a tax declaration inasmuch as it serves for the payment of export -related 
taxes such as: the general import tax (IGE), only rarely applicable, and the custom s processing 
fee (DTA), to be paid by all exporters except for those exporting to certain countries with which 
Mexico has signed an FTA.80 The export application allows the taxpayer to record his exports with 
the SAT for the purpose of the refund or credit of taxes and VAT, and to invoice VAT at a rate of 
0% in the case of definitive exports.  
3.109.   Compliance with non -tariff export regulations or restrictions is required for some goods, for 
example: phytosanitary or sanitary certificates; export permits issued by the SE (non -automatic 
export licences); CITES certificates for NOM -compliant exports; certificates issued by the 
regulatory councils for exports of tequila, mescal and coffee; and certificates of origin for exports 
eligible for preferential treatment under  the various trade agreements signed by Mexico. These 
certificates must accompany the pertinent export application and be forwarded through the Digital 
Window.  
3.2.2   Export taxes and duties  
3.110.   Mexico imposes export duties in order to guarantee supplies to the domes tic market or to 
protect human health, the environment, fauna, flora and the cultural heritage. During the review 
period, the number of tariff lines subject to an ad valorem export tax fell sharply, from 
25 HS eight-digit lines in 2012 to only two HS eight -digit lines in 2016 (bitumen and asphalt and 
bituminous mixtures). Moreover, in these cases, the rate applied was lowered from 50% to  25%.  
3.111.   Products for export are exempt from payment of the IEPS, even if they are subject to this 
tax on the domestic market .81 Goods and services exported by Mexico -resident firms benefit from 
a 0% VAT rate on the value of their sales.82 
3.2.3   Export prohibitions, regulations and permits  
3.112.   Mexico regulates exports in order to protect morals, security and public order, as well as 
public health, and to conserve natural resources, flora and fauna. Exports are also regulated in 
order to guarantee supplies of essential consumer goods and raw materials, and to protect assets 
of historical, artistic or archaeological importance. In some instanc es, the procedures laid down 
provide that the COCEX will evaluate studies prepared by departments proposing measures to 
regulate exports.  
3.113.   As was the case in 2012, Mexico still bans the export of certain chemical products and 
drugs and other products (27 pr oducts in the HS 2012 at the eight -digit level), usually for security 
or public health reasons or in order to comply with international agreements.  
                                                
80 In 2016, the DTA applicable to exports was generally Mex$288 (Mex$250 in 2012); this fee may vary 
depending on the situation (Federal Law on Duty of 31  December  1981, latest amendment published in the 
Official Journal of 11  August  2014). Online information viewed at: 
http://www.aaag.org.mx/contenido.php?content=51 . 
81 Articles 8 ( section II) and 19 (section XI) of the Law on the IEPS.  
82 Law on VAT (published in the Official Journal of 29  December  1978; latest amendment published in 
the Official Journal of 11  December  2013).  WT/TPR/S/35 2 • Mexico  
 
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  3.114.   Mexico makes use of automatic licensing (automatic permits) and non -automatic licensing 
(prior permits) for exports. Automatic licensing (automatic permits) is used for the purpose of 
keeping a record of foreign trade transactions. Licences are issued by the SE and are available to 
any natural or legal person meeting the legal requirements for engaging in foreig n trade 
transactions.  
3.115.   Non-automatic licensing (prior permits) for exports is used for the purpose of regulating 
trade in products in accordance with international treaties or agreements to which Mexico is party, 
for example, the Wassenaar Arrangement on Ex port Controls for Conventional Arms and Dual -Use 
Goods and Technologies; CITES; the Rotterdam Convention on the Prior Informed Consent 
Procedure for Certain Hazardous Chemicals and Pesticides in International Trade; and the 
Kimberley Process Certification Scheme. This type of licence may also be used to protect morals, 
security and public order, public health, the exploitation of natural resources and to conserve flora 
and fauna, but may not be used to restrict exports. The licensing requirement applies to products 
originating in any country on the basis of most -favoured -nation treatment.83 In 2016, 
non-automatic export licensing applied to 571 tariff lines, mostly chemical products (Chart 3.7).  
Chart 3.7 Non-automatic export licensing by HS 2016 section  
(Number of tariff lines)  
91
42
5127263
53
1617
1 37411
3 41
050100150200250300
1 2 3 4 5 6 8 9 12 13 14 15 16 18 20 21 OtherHS section:
1 -Live animals
2 -Vegetable products
3 -Fats and oils
4 -Prepared foodstuffs
5 -Mineral products
6 -Chemical products
8 -Hides and skins, leather
9 -Wood
12 -Footwear
13 -Articles of stone
14 -Natural pearls
15 -Base metals
16 -Machinery and mechanical appliances
18 -Instruments
20 -Miscellaneous manufactured articles
21 -Works of art
Other -Unclassified products
 
Source: WTO Secretariat calculations, based on data provided by the authorities.  
3.116.   Non-automatic export licences for specific products must show the tariff heading and 
include a descriptio n of the products, the value and quantity of exports authorized and the term of 
validity. Licences may not be assigned, but may be extended up to three times provided that the 
party concerned can prove that the goods have been shipped during the licence's term of validity, 
which is usually one year. Some licences may be for a longer period, for example, for certain 
hydrocarbons and petroleum products the term is 20 years and they may only be extended once 
for up to half the original term.  
3.117.   Non-automatic lice nces are processed using the Digital Window and are issued by different 
bodies depending on the product concerned and according to specific criteria: for example, 
COFEPRIS and SEMARNAT grant non -automatic licences for the export of pesticides and toxic or 
hazardous substances, while the Ministry of Energy (SENER) issues those for hydrocarbons and 
petroleum products. To obtain the latter, an interested party must prove that it has the necessary 
                                                
83 WTO document G/LIC/N/3/MEX/2 of 18  October  2016.  WT/TPR/S/35 2 • Mexico  
 
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  infrastructure, which it is in the process of developing or expa nding. The SENER may refuse to 
grant a licence if the authorization has an impact on government finance, if production does not 
suffice or if the analysis of the energy balance undertaken finds that the exports concerned 
jeopardize domestic supplies and ar e detrimental to Mexico's energy security.  
3.118.   Mexico has preferential export quotas under its trade agreements with Colombia 
(soybean  oil) and Japan (citric acid and citric acid salts, and guava syrup) and the European Union 
(cane molasses).84 
3.2.4   Export support  
3.119.   In 2014, Mexico notified the subsidies granted for agricultural exports over the period 
2008 to 2012.85 
3.120.   Mexico still promotes exports by granting tariff and tax concessions, particularly to the 
manufacturing sector. The Manufacturing, Maquila and Export Serv ices Industry (IMMEX) 
programme and the import duty drawback programme for exporters remained the key export 
promotion programmes during the review period.  
3.121.   Launched in 2006 to bolster the competitiveness of the export sector, the IMMEX 
programme is still o perating. Firms taking part in the programme may import a number of inputs 
temporarily (for example, raw materials, spare parts and components; fuels, lubricants and other 
materials; packing materials and packaging; labels and leaflets; machinery, equipmen t and tools; 
and containers), for which they are given exemption from tariffs, the possibility of receiving a tax 
credit for VAT and/or the IEPS and, where, applicable, exemption from anti -dumping or 
countervailing duties, provided that such inputs are use d to manufacture, process or repair goods 
for subsequent export or to provide export -related services.86 The IMMEX Decree specifies the 
period during which the inputs and goods may be temporarily imported. For example, some fuels, 
packing materials, packagi ng, labels and leaflets may remain in Mexican territory for up to 
18 months, containers and trailer boxes may remain for up to two years and other products may 
be imported for the period of the programme's validity. The Decree also includes a list of sensi tive 
products, which may not be imported under the IMMEX, except if there are unforeseeable 
circumstances or in cases of force majeure or for supply reasons.87 
3.122.   Both domestic and foreign maquila firms established in Mexico are eligible for the IMMEX 
programm e if their annual exports exceed US$500,000 or at least 10% of their total sales 
(Article  24 of the IMMEX Decree). The programme still comprises five options (Table 3.15). The 
programme's incentives are the same under each option.  
                                                
84 Online information from the SE . Viewed at:  
http://www.siicex.gob.mx/portalSiicex/SICETECA/Acuerdos/Cupos/Cupos%20x%20PRODUCTO/Cupos%20p or
%20producto.htm . 
85 WTO document G/AG/N/MEX/27 of 21  July 2014.  
86 Decree to promote the Manufacturing, Maquila and Export Services Industry (published in the Official 
Journal of 1  November  2006, latest amendment of 28  July 2016).  
87 Pursuant to the Decree  to promote the Manufacturing, Maquila and Export Services Industry 
(published in the Official Journal of 1  November  2006, latest amendment of 28  July 2016). In 2016, import of 
the following under the IMMEX programme was not prohibited: certain kinds of su gar (HS 1701.12.01 -03, 
HS 1701.13.01, HS  1701.14.01 –02, HS 1701.91.01, HS 1701.99.01 -02 and 99, and HS 1702.90.01 and 99), 
flavoured syrups (HS  2106.90.05), ethyl alcohol (HS 2207.10.01, HS 2207.20.01 and HS 2208.90.01), 
alcoholic beverages (HS  2208.90.02) , used pneumatic tyres (HS 4012.20.01) and worn clothing 
(HS 6309.00.01).  WT/TPR/S/35 2 • Mexico  
 
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  Table 3.15 IMMEX options  
Option  Description  
IMMEX holding 
company  Where the same programme encompasses manufacturing by a certified enterprise 
called the holding company and one or more firms controlled by it  
IMMEX Industrial  Wher e an industrial process is used to manufacture or process goods for export  
IMMEX Services  Where services are provided for the process of producing goods for export or export 
services are supplied  
IMMEX 
Accommodation  Where foreign companies provide the te chnology and inputs without belonging to the 
programme  
IMMEX Tertiary  Where a firm provides services to another firm  
Source:  Article 3 of the Decree to promote the Manufacturing, Maquila and Export Services 
Industry  (IMMEX), published in the Official J ournal of 1  November  2006, latest amendment of 
28 July 2016.  
3.123.   A firm may be eligible for both the IMMEX programme and a PROSEC programme 
simultaneously (Section on incentives). Nevertheless, if the firm is operating under the Services 
option, it may only im port certain types of machinery and equipment under the PROSEC (Article  7 
of the IMMEX Decree).  
3.124.   During the period under review, the number of firms operating under the IMMEX 
programme rose from 5,515 in 2012 to 6,448 in 2016 (September). This programme is extremely 
important for Mexico's trade. Over the period 2012 -2015, some 69.7% of Mexico's exports and 
50.5% of its imports on average were attributable to firms benefiting from the IMMEX programme 
(Chart 3.8). In 2016 (up to September), firms benefiting fr om the IMMEX programme accounted 
for 58% of exports and 44% of imports.  
Chart 3.8 Mexico's imports and exports by type of regime, 2012 -2015  
0100200300400500
2012 2013 2014 2015Total exports Total imports
Immex Non-IMMEXUS$ billion US$ billion
0100200300400500
2012 2013 2014 2015
 
Source:  WTO Secretariat, on the basis of information provided by th e authorities.  
3.125.   The export -intensive enterprises (ALTEX) and foreign trade enterprises (ECEX) 
programmes were abolished in 2010.88 Nevertheless in 2016, 1,553 enterprises were still 
benefiting from the incentives provided under these programmes.  
                                                
88 WTO document WT/TPR/S/279/Rev.1 of 10  July 2013.  WT/TPR/S/35 2 • Mexico  
 
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  3.126.   Mexico has a n import duty drawback programme for exporters (drawback programme) 
that has not seen any major changes since the previous review.89 It consists of refund of the duty 
paid on the import of raw materials, spare parts, components or other inputs used to produ ce 
goods for export or goods that are re -exported without being transformed.  
3.2.5   Export promotion  
3.127.   ProMexico remains the Federal body responsible for promoting exports and the installation 
of Mexican firms abroad (known as internationalization), as well as for  foreign investment 
(Section  2.4).90 
3.128.   ProMexico provides financial support to exporting firms or those with export potential to 
enable them, inter alia , to commission consultancy services, conduct market surveys or take part 
in international fairs. In 2015, it spent Mex$110  million on support for some 2,000 beneficiaries, 
an increase in spending of 37% and of 21% in the number of beneficiaries in comparison with 
2014. In 2015, ProMexico's support mostly went to meet travel costs for participation in trade 
missions or promotional events (36% of the total) and to finance foreign trade studies (30%), 
among other technical assistance services (Table  3.16). According to the self -evaluation report 
prepared by ProMexico in 2015, 91% of the firms surveyed considered t he support provided by 
ProMexico to be beneficial.91 ProMexico also offers paid services to exporting firms.  
Table 3.16 Financial support given to the exporting sector by ProMexico  
(Mex$, unless otherwise indic ated)  
Form of support  Maximum amount  Purpose  
Certification  150,000  Commission technical standards certification services  
Consultancy  250,000  Commission consultancy services in order to set up export networks 
composed of firms in the same sector or w ith the same line of products 
so that they can use the same distribution channel abroad  
200,000  Commission consultancy services to improve production processes or to 
develop new products  
50,000  Commission consultancy services for the registration of  trademarks, 
taking into account requirements in the country of destination, 
registration of intellectual property and foreign patent procedures  
35,000 -50,000  Commission special advisory services for setting up firms abroad  
Sending of samples  50,000  Send samples abroad  
Specialized studies  150,000  Undertake logistics studies  
400,000  Undertake studies to identify products, components or processes lacking 
in production chains  
75% of the total 
cost up to a 
maximum of 
150,000  Undertake studies to id entify export markets or internationalization 
opportunities  
50,000  Undertake internationalization studies  
500,000  Undertake studies to identify and select new suppliers  
Promotional events  70,000  Participate in international competitions or fairs  
150,000  Hold promotional events abroad  
130,000  Rent physical spaces in exhibition h alls (maximum rental period, 
12 months)  
50,000  Hold meetings with potential clients  
Marketing 
techniques  150,000 –450,000  Commission design services for promotion cam paigns abroad  
50,000  Commission design services for containers, packaging and labelling  
50% of the total 
cost up to a 
maximum of 50,000  Commission design services for promotional material (for example 
catalogues)  
Travel  50,000  Facilitate business tr avel for the purpose of surveying new markets 
abroad  
Source:  Online information from ProMexico, viewed at: http://www.promexico.gob.mx/es/mx/apoyos -y-
servicios . 
                                                
89 Decree establishing the drawback of import duty for exporters (published in the Official Journal of 
11 May 1995; latest amendmen t published in the Official Journal of 29  December  2000).  
90 ProMexico is a decentralized body of the SE. Online information from ProMexico . Viewed at:  
http://www.promexico.gob.mx . 
91 Online information from ProMex ico. Viewed at:  http://www.promexico.gob.mx/es/mx/apoyos -y-
servicios ; and ProMexico (2016), Informe de autoevaluación 2015 . Viewed at:  
http://www.promexico.gob.mx/documentos/pdf/informe -autoevaluacion -promexico -2015.pdf . WT/TPR/S/35 2 • Mexico  
 
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  3.129.   Other institutions also support the export sector. The National System for Guidance to 
Exporters (SNOE) and the Joint Export Promotion Commission (COMPEX) assist interested firms 
with export procedures92 (Section 2).  
3.130.   The various states also implement export promotion programmes. T wenty -three 
PYMEXPORTA Centres have been set up in states to provide assistance to exporting firms seeking 
to enter new markets.93 
3.2.6   Export financing, insurance and guarantees  
3.131.   The National Foreign Trade Bank (Bancomext) - the Federal development bank - provid es 
financing for exporting firms (direct exporters), their suppliers (indirect exporters) and 
foreign -exchange -generating firms (such as firms in the tourism sector). It acts as a first and 
second tier bank and still offers the same financial products as t hose offered in 2012 
(Table  3.17).94 
Table 3.17 Financial products offered by Bancomext  
 First tier  Second tier  
Type of enterprise  Small, medium -sized and large enterprises  SMEs  
Financial products  Credit, let ters of credit, international factoring, 
buyers' guarantees  Lines of credit for bank and non -bank 
financial intermediaries  
Source:  Online information from Bancomext, viewed at:  
http://w ww.bancomext.com/conoce -bancomext/quienes -somos  and at: 
http://www.bancomext.com/empresas -que-apoyamos/exportadores . 
3.132.   The principal financing tool is credit. Bancomext offers loans for amounts exceeding 
US$3  million directly to exporters, regardless of the sector in which they operate or the size of the 
firm. It has also set up a mechanism using financial intermediaries (mostly banks) to grant credit 
amounting to less than US$3  million to SMEs ("PyMEX loans"). During the review period, 
Bancomext increased the number of financial intermediaries with which it works in order to serve a 
larger number of SMEs. In 2016, it collaborated with 51 bank and non -bank financial 
intermediaries.95 
3.133.   Bancomext grants credit directly to exporters in order to finance working capital or to 
purchase fixed assets, expand their industrial infrastructure or develop investment projects (for 
example, upgrading their facilities). It offers different types of credi t such as corporate credit and 
structured credit (in order to be able to take part in international tendering), and also offers 
syndicated loans.96 The lines of credit granted to commercial banks are intended to finance 
working capital and fixed assets.97 Interest rates are in line with market terms.  
3.134.   Firms in any economic sector may apply to Bancomext for credit. The Bank, nonetheless, 
follows a business model that promotes "strategic" sectors, namely, sectors that are key because 
of their substantial contrib ution to export and foreign currency generation. These sectors are 
aerospace, the automotive industry, electrical -electronic components, energy, the maquila 
industry and industrial premises, mining and metallurgy, telecommunications, transport and 
                                                
92 Online information from the National Entrepreneurs Institute . Viewed at:  
https://www.redemprendedor.gob.mx/index.php/m -inadem/16 -articulo -inadem -5.e; and online information 
viewed at: http://www.contactopyme.gob.mx/compex /default.asp . 
93 Online information from the SME Institute . Viewed at:  
http://mexico.smetoolkit.org/mexico/es/content/es/8036/Programa -PYMEXPORTA . 
94 Online informatio n from Bancomext . Viewed at:  http://www.bancomext.com/conoce -
bancomext/quienes -somos . 
95 Bancomext (2016), Informe Annual 2015 . Viewed at: http://www.bancomext.com/conoce -
bancomext/bancomext -en-cifras/informe -anual ; and online information from Bancomext . Viewed at:  
http://www.bancomext.com . 
96 A description o f the loans can be viewed at: http://www.bancomext.com/en/products -and-
services/credit . 
97 Online information from Bancomext . Viewed at:  http://www.bancomext.com/en/products -and-
services/credit . WT/TPR/S/35 2 • Mexico  
 
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  logistic s, and tourism.98 In 2016, Bancomext reinforced its support for tourism in the form of a 
new financing programme intended to expand and renovate the hotel infrastructure.99 
3.135.   The amount of credit granted by Bancomext increased during the review period. Between  
2012 and 2015, the increase was 33%, reaching US$11,128  million in 2015 (Table 3.18). The 
"strategic" sectors received 70% of the total credit in 2015; among them, tourism received 17% of 
all loans followed by industrial parks and premises (16%) and energ y (13%).100 
Table 3.18 Credit granted by Bancomext to the export sector, 2012 -2016  
(US$ million)  
 2012  2013  2014  2015  2016  
(Jan-March)  
Total amount of credit  8,382  11,480  12,087  11,128  2,005  
First tier  6,549  8,903 9,533  8,773  1,424  
Second tier  1,833  2,577  2,554  2,355  581 
Beneficiary enterprises (first tier)  268 353 440 491 440 
Source:  Bancomext's credit financing programme 2012 -2016. Viewed at: http://www.bancomext.com/wp -
content/uploads/2014/08/Prg -Fin-Cred-2012-2016t1.pdf . 
3.136.   In addition, Bancomext promotes exports by means of other financial instruments, for 
example, international factoring, buyers' guarantees or letters of credit.101 Through the 
international factoring service, direct and indirect exporters obtain liquidity by selling their 
accounts receivable to the bank; Bancomext buys these for up to 90% of the value of the invoice. 
The buyers' guarantee is a mec hanism whereby Bancomext gives guarantees (for up to 
US$3  million) to financial intermediaries located abroad so that they can finance the purchase of 
Mexican products and/or services. Bancomext also allows exporters to use letters of credit as a 
means of payment. These three instruments fully cover exporters against the risk of non -payment.  
3.137.   Mexico does not have any official export credit insurance programmes. Export credit 
insurance is offered through CESCEMEX, a company in which Bancomext has a minority h olding. A 
private group, the International Credit Insurers Consortium, composed of four private foreign 
insurers, holds 51% of CESCEMEX's capital.102 
3.3  Other measures affecting production and trade  
3.3.1   Incentives  
3.138.   During the review period, Mexico notified the WTO o f various export subsidy programmes 
for the fisheries and aquaculture sector, the forestry sector and high -technology industries.103 
These programmes were already in operation in 2012 and had been notified.  
3.139.   Mexico still implements a number of support program mes to promote exports, attract 
investment and create jobs. In addition to these general programmes, it has sectoral programmes, 
mostly aimed at micro, small and medium -sized enterprises, which provide financial assistance, 
tax incentives and technical tra ining. In this regard, mention should be made of the PROSEC and 
of some tax concessions for payment of the ISR and IEPS, consumption of diesel fuel and the 
import of environmentally friendly machinery, inter alia.  
                                                
98 Online information from Bancomext . Viewed at:  http://www.bancomext.com/en/ firms -we-
finance/strategic -sectors . 
99 Bancomext press release of 21  April 2016. Viewed at: http://www.bancomext.com/wp -
content/uploads/2016/04/Comuni cado-Sectur -SHCP -Bancomext -Mejora -tu-Hotel.pdf . 
100 Bancomext (2016), Informe Anual  2015. Viewed at:  http://www.bancomext.com/conoce -
bancomext/bancomext -en-cifras/inf orme-anual . 
101 Online information from Bancomext . Viewed at:  http://www.bancomext.com/en/products -and-
services/international -factoring , http://www.bancomext.com/en/products -and-services/guarantees/buyers -
guarantees , and http://www.bancomext.com/e n/products -and-services/letters -of-credit . 
102 Online information from CESCEMEX . Viewed at:  http://cescemex.mx/web/sp/index.aspx . 
103 WTO documents G/SCM/N/284/MEX of 9  July 2015 and G/SCM/N/284/MEX/Suppl.1 of 
11 November  2015.  WT/TPR/S/35 2 • Mexico  
 
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  3.140.   The PROSEC date back to 2002 and are still  in force with the aim of bolstering 
competitiveness.104 These programmes allow inputs and machinery for manufacturing specific 
goods to be imported at a preferential tariff, irrespective of whether the final good is consumed on 
the domestic market or export ed. Each sectoral programme lists the inputs by tariff line, showing 
the corresponding preferential tariff. The incentive provided is only granted if the inputs are used 
in the sector specified in the PROSEC.  
3.141.   The number of PROSEC and the sectors they cover  have not changed since 2012, although 
in 2016, the total number of beneficiary products decreased, and consequently the number of tariff 
lines covered by the PROSEC fell from 3,005 in 2012 to 2,717 in October  2016 (Chart 3.9). The 
decrease in terms of pro duct coverage has been the trend since 2007, when 6,185 tariff lines 
received preferential tariffs. As to the distribution of the levels of preferential tariffs granted under 
the PROSEC, in 2016, as in 2012, the most common rates were 0% and 5%, which appl ied to 75% 
and 19% of the tariff lines covered, respectively. Although the number of lines benefiting from the 
PROSEC has fallen, the number of beneficiary enterprises increased from 3,533 in 2012 to 3,989 in 
October  2016. The enterprises authorized may op erate in more than one sector at the same time.  
Chart 3.9 Inputs covered by the various PROSEC programmes, 2016 (October)  
0 50 100 150 200 250 300 350 400 450 500 550 600 650 7002322212019181716151413121110987654321
0% 2.5% 3% 5% 7% 10%
Number of lines12 Textiles and clothing
13 Footwear
14 Iron and steel
15 Agricultural machinery
16 Electricity
17 Electronics
18 Automobiles and spare parts
19 Transportation, except the automotive 
and spare parts sector
20 Toys and sports articles
21 Furniture
22Miscellaneous industries
23 Capital goods1 Food and sugar
2 Coffee
3 Chocolates , confectionery and the like
4Mining and metallurgy
5 Chemicals
6 Pharmaceutical products, medicines
and medical equipment
7 Photography
8 Rubber and plastic articles
9 Leather and hides and skins
10 Wood
11 Paper and paperboardIndustries
 
Source:  Information provided by the authorities.  
3.142.   Mexico also grants tax incentives su ch as refund of income tax (ISR), tax credits and 
exemption from payment of the tax on new motor vehicles (ISAN) for electric vehicles 
(Table  3.19). The tax incentives available under the Federal Revenue Law apply for one year and 
their efficacy is evaluat ed annually for the purpose of drawing up the national budget. Following 
the 2014 fiscal reform, other incentives were amended, for example, those granted for producing 
Mexican films and plays, which were extended to include the distribution of Mexican fil ms in 
2014.105 This tax incentive for the production of Mexican films and plays corresponds to the 
amount which ISR taxpayers have contributed in the form of investment in film production during 
the financial year concerned; the tax credit is not cumulative for the purposes of ISR. 
The incentive may under no circumstances exceed 10% of the tax paid during the preceding 
financial year.  
                                                
104 Decree establishing various sectoral promotion programmes (published in the Official Journal of 
2 August  2002; latest amendment published in the Official Journal of 26  December  2011).  
105 Articles 31 and 32 of the Federal Law on the Fi lm Industry (published in the Official Journal of 
29 December  1992; latest amendment published in the Official Journal of 17  December  2015).  WT/TPR/S/35 2 • Mexico  
 
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  Table 3.19 Some tax incentives, 2016  
Incentive  Description  Legal instrument  
Exemption from the ISR for 
income earned from crop 
farming, livestock farming, 
forestry and fishing  Legal persons engaging in these activities do not pay the 
ISR if their annual income does not exceed the equivalent of 
20 general minimum wages (SMG) per part ner, although the 
total may not exceed 200 times the SMG. Natural persons 
do not pay the tax if their annual income does not exceed 
40 SMG.  Article 74 (sections II 
and V) of the Income 
Tax Law  
Lower rate of ISR applicable 
to the primary and 
agroindustria l sector  Natural and legal persons engaging exclusively in these 
activities may receive rebates of 40% and 30%, 
respectively.  Article 74 (sections II 
and V) of the Income 
Tax Law  
Tax incentives for generating 
energy from renewable 
sources  Taxpayers may de duct from the ISR 100% of the cost of 
machinery and equipment used to generate renewable 
energy or the cost of systems for the efficient generation of 
electric power.  Article  34 (section XII) 
of the Income Tax Law  
Exemption from payment of 
tariffs on im ports of inputs, 
intermediate goods, 
machinery and equipment for 
research and technology 
development.  Exemption from payment of tariffs on inputs that contribute 
to the development of scientific and technological activities 
by dedicated institutions that a re listed in CONACYT's 
National Register of Scientific and Technological Institutions 
and Companies (tariff heading 9806.00.03), subject to 
authorization from the SE.  Decree on the General 
Import and Export Tax 
Law (Official Journal of 
18 July 2007)  
Immed iate deduction for 
investment in new fixed 
assets  A temporary tax incentive is granted to the following 
taxpayers for 2016 and 2017: natural and legal persons 
engaging in business and professional activities and having 
earned up to Mex$100  million during the immediately 
preceding year; those investing in the construction and 
expansion of infrastructure or in hydrocarbons -related 
activities (Article 2 of the Hydrocarbons Law). The tax 
incentive consists of immediate deduction of the cost of 
investment in ne w fixed assets, according to the 
percentages determined in the Law.  Article 3 of the 
Temporary Provisions of 
the Income Tax Law  
Tax incentives for the film 
industry  Tax incentives for:  
(a) cinemas which show Mexican films or which help to 
diversify the s upply of foreign films;  
(b) companies which promote the production, distribution, 
screening and/or marketing of Mexican films; those which 
copy, subtitle or dub films in Mexico; or producers attending 
international film festivals at which they obtain an aw ard; 
(c) building or restoration of cinemas.  Federal Law on the Film 
Industry  
Incentives granted under the 
Revenue Law  Companies (other than those in the mining sector) 
purchasing diesel fuel for exclusive use as a fuel for 
machinery (except vehicles) may  credit the IEPS against the 
ISR. 
Persons purchasing diesel fuel for use in agricultural or 
forestry activities and whose income during the preceding 
year did not exceed 20 SMG may request the refund of the 
IEPS instead of crediting it.  Federal Revenue Law  for 
fiscal year 2015  
 
 
Federal Revenue Law for 
fiscal year 2015  
 Persons purchasing diesel fuel to be used in public or private 
vehicles for the transport of passengers, freight or tourists 
may request the refund of the IEPS, instead of crediting it.  
Taxpayers exclusively engaging in public or private transport 
of freight or passengers or tourists and using the national 
tolled motorway network may deduct from the ISR up to 
50% of the toll charges paid.  
The IEPS paid on the purchase and import of fossil fu els, 
according to their carbon content and provided that they are 
not to be used for burning, may be deducted from the ISR.  Federal Revenue Law for 
fiscal year 2015  
 
Federal Revenue Law for 
fiscal year 2015  
 
 
Federal Revenue Law for 
fiscal year 2015  
 Holders of mining concessions and allocations, when selling 
or disposing of the minerals and substances specified in the 
Mining Law and provided that their annual gross income 
does not exceed Mex$50  million, may deduct the special 
levy on mining activities pa id from the ISR.  Federal Revenue Law for 
fiscal year 2015  
 
Mining Law  
Source:  WTO Secretariat, on the basis of online information from the SAT, viewed at: 
http://www .sat.gob.mx/fichas_tematicas/reforma_fiscal/Paginas/default.aspx ; and information 
provided by the authorities.  
3.143.   In addition to offering tax incentives, Mexico has other direct support, credit and guarantee 
programmes for SMEs and MSMEs or to boost competit iveness and research and experimental 
development (R&D), together with programmes aimed at particular sectors such as agriculture, 
tourism and the film industry (Table 3.20). One of the major programmes for the film industry 
remains the programme to suppor t the mainstream film and audiovisual industry, which WT/TPR/S/35 2 • Mexico  
 
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  reimburses 17.5% of the production costs incurred in Mexico, provided that a minimum of 
Mex$40  million is spent in Mexico during the development and production stage and/or 
Mex$10  million in post -produc tion costs. The programme also allows the refund of VAT.106 
Table 3.20 Some support programmes, 2012 -2016  
(Mex$)  
Authority  Programme  Form of 
support  
Ministry of the 
Economy  National microenterprise financing pr ogramme, Microfinance fund for rural 
women (FOMMUR)  Loans  
National financing programme for microenterprises and rural women (PRONAFIM)  
National guarantees scheme ( México Emprende  trust fund)  Guarantees  
National business fund (created in 2014, foll owing the amalgamation of the 
SME fund and the business fund)  Financial support  
Development of high -technology industries programme (PROIAT)  
Technological development of industry programme (PRODIAT)  
Logistics and supply centre competitiveness progr amme (PROLOGYCA)  
Programme to foster competitiveness in industrial sectors (PROIND)  
Software industry development programme (PROSOFT)  
SAGARPA  Investment in equipment and infrastructure programme (PAIEI)  Financial support  
Fund for production prog rammes in agricultural clusters (FAPPA)  
Productivity of women in business programme (PROMETE)  
Young farmers' programme  
Productivity and agrifood competitiveness programme  Financial 
support; 
guarantees  
SICES  Programme to promote research, technolo gical development and innovation (PEI)  Financial support  
Nacional 
Financiera 
(NAFIN)  SME loans  Loans  
Loans for the Crecer Juntos  programme  
Financing of transport MSMEs  
Financing for technical modernization  
Sustainable projects programme  
SME women  
Loans for the building industry  
Eco-credits for businesses  
Financing for the leather and footwear sector  
Financing for car dealers  
Support for the textiles, clothing and fashion industry  
Microcredit programme  
Loans to software  development companies  
Security guarantee  Securities  
Guarantees programme  Guarantees  
Production chains programme  Factoring  
Film industry  Programme to support the mainstream film and audiovisual industry  Financial 
support; VAT 
refund  
Film investm ent and promotion fund ( FIDECINE)  Financial support  
through a fund  Fund for the production of high -quality films (FOPROCINE)  
Programme in support of creators  
Support for the production of short films  
Support for the distribution of less popular  films  
Support for the distribution of Mexican films in commercial cinemas (EPROCINE)  
Note:  SAGARPA: Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food; SICES: 
Ministry of Innovation, Science and Higher Education . 
Source:  Catalogue of Federal programmes 2013, 2014, 2015 and 2016 published by the National Institute 
for Feder alism and Municipal Development,  viewed at:  
http://www.inafed.gob.mx/es/inafed/Public aciones_en_Linea ; online information from NAFIN, 
viewed at:  http://www.nafin.com/portalnf/content/home/home.html ; online information from SICES, 
viewed at:  http://www.concyteg.gob.mx/pei ; Federal Law on the Film Industry (latest amendment 
published in the Official Journal of 28  April 2010); and online information from IMCINE, viewed at:  
http://www.imci ne.gob.mx . 
                                                
106 Online information from the Mexican Film Commission (COMEFILM) . Viewed at:  
http://www.comefilm.gob.mx/wp -content/uploads/2013/09/Preguntas_Frecuentes_Nuevos_Montos.pdf . WT/TPR/S/35 2 • Mexico  
 
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  3.3.2   Competition policy and price controls  
3.3.2.1   Competition policy  
3.3.2.1.1   Legal framework  
3.144.   Mexico's competition policy is governed by Article 28 of the Constitution107, the Federal 
Law on Economic Competition (LFCE) of 2014108 and the Federal Telecommunications and 
Broadcasting Law (LFTR) of 2014109, together with the provisions on competition in the FTAs 
signed by Mexico.  
3.145.   During the review period, Mexico's competition policy underwent far -reaching changes in 
terms of its legal framework. Article  28 of the Constitution  was amended four times over this 
period and a new Federal Law on Economic Competition was published in 2014, repealing the 1992 
Law (last amended in 2011), which had previously governed this area. The Federal 
Telecommunications and Broadcasting Law was pu blished in 2014 as well, repealing the specific 
laws that had applied to these sectors and affecting competition therein.  
3.146.   The following were some of the most important changes to Article  28 of the Constitution 
over the review period; the creation of the Fe deral Economic Competition Commission (COFECE), 
which replaced the Federal Competition Commission (CFC), set up in 1992; giving the Federal 
Telecommunications Institute (IFT) exclusive responsibilities in relation to economic competition in 
the telecommuni cations and broadcasting spheres; and the establishment of a procedure for 
appointing members of the COFECE and the IFT.  
3.147.   Article  28 of the Constitution prohibits monopolies, monopolistic practices, cartels and tax 
exemptions under the terms and conditions specified in the legislation. It also states that the 
following functions of the State exercised exclusively do not constitute monopolies: postal, 
telegraph and radio telegraph services; radioactive minerals and nuclear power generation; 
planning and contr ol of the national electrical system, the public service of electricity transmission 
and distribution; and exploration for and extraction of oil and other hydrocarbons. The exclusive 
functions exercised by the State through the Central Bank in strategic ar eas such as the minting of 
coins and issuing of banknotes do not constitute monopolies either. The LFCE implements 
Article  28 of the Constitution as far as free market access and economic competition, monopolies, 
monopolistic practices and cartels are conc erned; it serves public order and society's interests, 
applies to all areas of economic activity and is generally enforceable throughout Mexico.110 
3.148.   The LFCE prohibits monopolies, monopolistic practices, unlawful concentrations and 
barriers which hinder, impa ir, impede or condition any form of free market access or economic 
competition in the production, processing, distribution or marketing of goods or services 
(Article  52 of the LFCE). The LFCE also provides that the following do not constitute monopolies: 
workers' associations incorporated to protect their interests pursuant to the relevant legislation; 
the privileges granted for a certain period of time to authors and artists for the production of their 
works and those granted to inventors and individuals p erfecting an invention for exclusive use in 
their inventions or improvements; and producers' associations or cooperatives which sell their 
domestic or industrial products directly on foreign markets (Articles 6, 7 and 8 of the LFCE).  
3.149.   The LFCE draws a disti nction between absolute and relative monopolistic practices. 
Absolute monopolistic practices are considered illegal as such and thus punishable without 
exception as it is considered unlikely that they will yield benefits in terms of efficiency and always 
have a direct and negative impact on consumers. Such absolute monopolistic practices are defined 
                                                
107 Political Constitution of the United Mexican States (published in the Official Journal of 
5 February  1917, latest amendment of 27  January  2016). Document available at: 
http://www.diputados.gob.mx/LeyesBiblio/htm/1.htm . 
108 Federal Law on Economic Competition (published in the Offici al Journal of 23  May 2014). 
Document  available at: http://www.diputados.gob.mx/LeyesBiblio/pdf/LFCE.pdf . 
109 Federal Telecommunications and Broadcasting Law (published in the Official Journa l of 14  July 2014, 
latest amendment of 1  June 2016). Document available at: 
http://www.diputados.gob.mx/LeyesBiblio/pdf/LFTR_090616.pdf . 
110 Title I of the Federal Law on Economic Com petition (published in the Official Journal of 
23 May 2014). Document available at: http://www.diputados.gob.mx/LeyesBiblio/pdf/LFCE.pdf . WT/TPR/S/35 2 • Mexico  
 
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  as contracts, agreements, arrangements or combinations among competing economic agents if 
their purpose or effect is any of the following: (a) to fix, raise, co ordinate or manipulate the sale or 
purchase price of goods or services supplied or demanded in the markets; (b) to establish an 
obligation not to produce, process, distribute, market or acquire only a restricted or limited 
amount of goods, or the provision  or transaction of a limited or restricted number, volume or 
frequency of services; (c) to divide, distribute, allocate or impose portions or segments of a 
current or potential market for goods and services, by a determined or determinable group of 
custome rs, suppliers, time spans or spaces; (d) t o establish, arrange or coordinate bids or 
abstentions from tenders, competitions, auctions or purchase calls; and (e) to exchange 
information for any of the purposes or effects referred to in the previous subsecti ons. Absolute 
monopolistic practices are considered null and void and economic agents that engage in them are 
subject to the sanctions provided in the LFCE, regardless of any criminal or civil liability that may 
arise therefrom.  
3.150.   The LFCE considers relative  monopolistic practices to be those which consist of any act, 
contract, agreement, procedure or combination, which: (a) corresponds to any of the criteria 
referred to in Article  56 of the Law111; (b) is carried out by one or more economic agents that 
individ ually or jointly exert substantial market power in the same relevant market in which the 
practice is executed; and (c) has or may have as its purpose or effect, in the relevant market or a 
related market, that of unduly displacing other economic agents, su bstantially impeding their 
access or establishing exclusive advantages in favour of one or several economic agents. These 
practices are deemed illegal if any of the criteria in the Law are met, unless the economic agent 
proves that they produce gains in ef ficiency and have a favourable impact upon the process of 
economic competition and free market access, thus overcoming their possible anticompetitive 
effects, and consequently result in an improvement in consumer welfare.112 
3.151.   The LFCE also includes provisions  on determining the substantial power of economic 
agents, deemed to be an essential element for the analysis of relative monopolistic practices, 
cartels, essential inputs, barriers to competition and conditions of effective competition, as well as 
for impo sing sectoral regulations. It is specified that, in order to determine whether one or more 
economic agents has substantial power in the relevant market, the following criteria are to be 
taken into account: (a) their share of the market in question and thei r ability to fix prices or 
restrict supplies in the relevant market; (b) the existence of barriers to entry and elements which 
could foreseeably alter either the said barriers or the supply of other competitors; (c) the 
existence and power of competitors; (d) the opportunities for economic agents and their 
competitors to access sources of inputs; and (e) the recent behaviour of economic agents 
participating in the said market.  
3.3.2.1.2   Institutional framework  
3.152.   There are currently two economic competition authorities in Mexico, the COFECE and the 
IFT. The former is the authority responsible for implementing the LFCE in all sectors except for 
telecommunications and broadcasting. The IFT has sole responsibility for economic competition 
matters in the telecommunications a nd broadcasting sectors. Both bodies are autonomous 
constitutional entities, with their own legal status and assets, created following the constitutional 
reform of 11  June 2013, whose objective is to guarantee free competition and market access; and 
to pre vent, investigate and combat monopolies, monopolistic practices, cartels and other 
                                                
111 These criteria include the following: (a) imposi ng exclusive marketing or distribution of goods or 
services between economic agents that are not competitors or imposing the obligation not to manufacture or 
distribute goods or provide services for a determined period of time; (b) imposing prices on distr ibutors or 
sellers; (c)  conditional sales or transactions; (d) refusing to sell, market or supply goods or services to certain 
individuals; (e) concerting with a view to refusing to sell, market or purchase goods or services from an 
economic agent with the  aim of dissuading it from certain conduct; (f) selling below the average variable cost 
or below the average total cost in order to increase prices subsequently; (g) granting discounts or incentives to 
buyers on the condition that they do not market the go ods or services produced; (h) cross subsidies between 
products or services; (i) establishing separate prices or conditions for selling to or purchasing from different 
buyers or sellers; (j) hindering production by other economic agents; (k) refusal or rest riction of access to an 
essential input, or access under discriminatory terms and conditions; and (l) reducing the existing margin 
between the price of accessing an essential input and the price of the good or service offered to the final 
consumer. This li st is much more exhaustive than the previous one.  
112 If, for example, the practice leads to: the introduction of new goods or services; lower costs; the 
introduction of technological advances; improvements in the quality of the goods or services; increased 
investment; or any other net contribution to consumer welfare which overcomes their anticompetitive effects.  WT/TPR/S/35 2 • Mexico  
 
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  restrictions on the efficient functioning of markets (Article  28 of the Constitution and Article  10 of 
the LFCE). It also the responsibility of these two bodies to determine  the existence of and regulate 
access to essential inputs and to order measures to eliminate barriers to competition or other 
restrictions on the efficient functioning of markets.  
3.153.   For both of the competition authorities (the COFECE and the IFT), the invest igating 
authority is the body responsible for conducting investigations and acts as party in legal 
proceedings. Each authority defines its own structure on the basis of its organic statute. In 
carrying out its responsibilities, the investigating authority has technical and administrative 
autonomy to decide on how to operate.113 
3.154.    The IFT has an economic competition unit (UCE), which is in charge of instituting the 
proceedings referred to in the LFCE and has the responsibilities determined in the organic 
statut e.114 The COFECE's Directorate -General of Mergers and the IFT's Directorate -General of 
Mergers and Concessions are in charge of analysing and deciding on matters relating to mergers, 
each of them within its own sphere of competence. Both these Directorates h ave the authority to 
propose conditions for approving mergers and to assist in their verification, and may object to a 
merger taking place. They may also propose the inclusion of protective and promotional measures 
in relation to economic competition when public enterprises or assets are disposed of, as well as in 
the course of assignment of concessions and permits by departments and entities of the Federal 
Government.115 
3.3.2.1.3   Investigations into monopolistic practices  
3.155.   Pursuant to the provisions in the LFCE, befor e an investigation into monopolistic practices 
or illegal cartels may be initiated, there must be an objective cause, with some indication of its 
existence. An investigation procedure undertaken by the COFECE or IFT investigation authority 
may be initiated : (a) ex officio ; (b) at the request of the Federal Executive itself or through the SE 
or the Federal Consumer Protection Agency (PROFECO); or (c) at the request of a party. Within 
15 days of receiving the complaint, the investigating authority must issue a decision: (a) ordering 
the initiation of an investigation; (b) rejecting the complaint in all or in part on the grounds of its 
inadmissibility; or (c) requesting the complainant, once only, to clarify or complete its brief within 
a period of 15 days. The  investigation period commences as of the date on which the decision to 
initiate the investigation in question is issued and may not be less than 30 or more than 120 days. 
If there are duly substantiated reasons, this period may be extended by the investig ating authority 
up to four times for periods of up to 120 days.  
3.156.   Before initiating an investigation for the purpose of determining a barrier to competition, 
the investigating authority must issue a decision on its initiation, and publish an extract thereof in 
the Official Journal of the Federation, identifying the market under investigation so that any person 
may present information in the course of the investigation. The investigation period commences as 
of the date of publication of the extract and may not  be less than 30 or more than 120 days. 
If there are duly substantiated reasons, the COFECE or the IFT may extend this period up to 
two times. During the investigation procedure, the investigating authority may order the initiation 
of new investigations, r equest the reports or documents needed for the investigation and order 
inspection visits.  
3.157.   After the investigation has been completed and if there are elements showing that there is 
no effective competition in the market investigated, within 60 days followi ng the conclusion of the 
investigation, the investigating authority must issue a preliminary ruling, otherwise it proposes 
that the file be closed. When issuing the preliminary ruling, the investigating authority must 
propose the remedial measures deemed n ecessary to remove the restrictions on the efficient 
                                                
113 Online information from COFECE . Viewed at:  
https://www.cofece .mx/cofece/index.php/cofece/autoridad -investigadora . 
114 It is the UCE's responsibility to conduct the main proceedings covered by Chapter XVI of the IFT's 
organic statute. Online information from the IFT . Viewed at:  
http://www.ift.org.mx/sites/default/files/estatuto_organico_04_09_14.pdf . 
115 Online information from COFECE . Viewed at:  
https://www.cofece.mx/cofece/index.php/cofece/secretaria -tecnica/atribuciones -de-la-direccion -general -de-
concentraciones . WT/TPR/S/35 2 • Mexico  
 
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  functioning of the market investigated. After the preliminary ruling, a period is given in which to 
put forward claims, after which the file is deemed to be complete.  
3.158.   After the file is complete, the Boar d of the IFT or the COFECE issues the corresponding 
resolution within a period not exceeding 60 days. This resolution may include: 
(a) recommendations to government authorities if the IFT or the COFECE finds that there are legal 
provisions which unjustly p revent or distort free market access and competition; (b) an order to 
the economic agent concerned to remove the barrier unfairly affecting free market access and 
competition; (c) a determination of the existence of essential inputs and guidelines regulati ng, 
where applicable, modes of access, prices or rates, technical specifications and quality, as well as 
the timetable for application; or (d) the disposal of assets, rights, equity or shares belonging to the 
economic agent concerned, in the percentages re quired to eliminate the anticompetitive effects. 
This resolution is notified to the Federal Executive and to the department coordinating the 
corresponding sector, as well as to the economic agents involved, and is published in the 
distribution media of the  IFT or the COFECE, with the relevant information being published in the 
Official Journal.  
3.3.2.1.4   Economic mergers  
3.159.   The LFCE provides that the following economic mergers must be authorized by the COFECE 
and the IFT before they occur: (a) when they directly or indi rectly involve the entry into 
Mexican  territory of an amount in excess of the equivalent of 18  million times the current SMG in 
Mexico City; (b) when they involve the accumulation of 35% or more of the assets or stock of an 
economic agent whose annual sale s originating in Mexican territory or assets in the country 
account for more than the equivalent of 18  million times the said minimum wage; or (c) when they 
imply the accumulation within Mexican territory of assets or registered capital in excess of the 
equivalent of 8.4 times the SMG and two or more of the economic agents participating in the 
merger have annual sales originating in Mexican territory or assets in Mexican territory worth, 
jointly or separately, an amount in excess of 48  million times the cur rent daily SMG in 
Mexico  City.116 
3.160.   Economic agents must obtain an authorization in order to conclude a merger before: 
(a) the legal act is issued; (b) de facto or de jure control over another economic agent is acquired 
or is directly or indirectly exercised, or assets, participation in trusts, equity or shares of another 
economic agent are acquired de facto or de jure; or (c) a merger agreement is signed between the 
economic agents involved. Mergers as a result of legal acts drawn up abroad must be notified by  
the economic agents directly participating in the merger before they can have legal or material 
effects in Mexico. Any merger transactions which violate these provisions are considered legally 
null and void and the economic agents or persons which ordered  or assisted in their conclusion 
may be subject to administrative, civil or criminal sanctions. Merger transactions may not be 
registered in the Public Trade Register until the COFECE or the IFT, as applicable, has given its 
authorization.  
3.161.   When notifying a  merger, economic agents must f orward to the COFECE or the 
IFT information and evidence showing that it is "clear" that the purpose or effect of the merger will 
not be to hinder, impair or prevent free market access and economic competition.117 Within the 
                                                
116 Under the repealed competition law, notification was compulsory for: mergers involvin g an amount in 
excess of the equivalent of 12  million times the current daily SMG in Mexico City; if the transaction led to an 
accumulation of 35% or more of the assets or stock of an economic agent whose assets or sales represented 
more than the equivalen t of 12  million times the prevailing daily SMG in Mexico City; or two or more economic 
agents whose assets or annual volume of sales, jointly or separately, amounted to more than 48  million times 
the said SMG took part in the transaction and the transactio n involved an additional accumulation of assets or 
registered capital in excess of the equivalent of 4,800 times the SMG.  
117 According to Article 92 of the LFCE, it is deemed clear that a merger will not have the purpose or 
effect of hindering, impairing or  preventing free market access and economic competition when the acquiring 
party does not participate in markets related to the relevant market in which the merger occurs and is not an 
existing or potential competitor of the acquiring party and, in additio n, any of the following circumstances 
occur: (a) the transaction implies the participation of the acquiring party in the relevant market for the first 
time; (b) prior to the transaction, the acquiring party does not hold control over the acquired economic agent 
and, as a consequence of the transaction, the former increases its relative participation in relation to the latter, 
without attaining more power to influence the company's operation, management, strategy and main policies; 
or (c) the party acquiring  stock has the control of a company and increases its relative participation in the 
company's capital structure.  WT/TPR/S/35 2 • Mexico  
 
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  five-day period following receipt of the merger notification, the COFECE or the IFT must issue the 
decision on its admissibility or declare it inadmissible. The plenary of the COFECE or the IFT has to 
decide whether the merger complies with the criteria of c learly not hindering, impairing or 
preventing free market access and economic competition, within a period not exceeding 15 days 
following the admissibility decision. At the end of the period, if no decision has been issued, it shall 
be understood that the re is no objection to the merger.  
3.162.   The LFCE provides that no prior notification is required when: the transaction involves 
corporate restructuring; the holder of stock, partnership interest or units of participation increases 
its relative participation in a  company's registered capital which it controls; the transaction 
concerns the incorporation of a management, guaranty or any other sort of trust, without the 
purpose or necessary consequence being the transfer of the said assets, or stock to a separate 
company; or the transaction concerns legal acts of foreign companies not fiscally resident in 
Mexico. It is not necessary either to notify the acquisition of equity, bonds, stock or securities 
using resources resulting from the placement of an equity investme nt company's registered capital 
unless these may have a significant influence over the decisions of the economic agent involved in 
the merger. Notification is not required for the acquisition of equity, stock, securities or documents 
representative of the registered capital of companies traded on stock exchanges in Mexico or 
abroad, unless the purchase makes the acquiring party the owner of 10% or more of the 
company's shares.  
3.163.   The COFECE or the IFT may authorize, give conditional authorization or not author ize a 
merger. The conditions which the competition authorities may establish include: (i) carrying out or 
abstaining from a specific action; (ii) divesting specific assets, rights, partnership interest or stock 
in favour of third parties; (iii) modifying o r eliminating terms or conditions from the acts intended 
to be executed; (iv) committing to implement actions intended to foster the participation of 
competitors in the market, as well as making available or selling goods or services to them; or 
(v) other measures aimed at preventing the merger from hindering, impairing or preventing free 
competition or market access. The COFECE or the IFT may only impose or accept conditions that 
are directly related to remedying a merger's anticompetitive effects. The con ditions that are 
imposed or accepted must be proportionate to the intended correction.  
3.3.2.1.5   Activities of the competition authorities  
3.164.   During the period 2012 -2016, the competition authorities initiated 57 investigations for 
alleged monopolistic practices, 41 end ed because of the absence of evidence and eight led to 
sanctions. Over the same period 265 mergers were notified and led to 241 investigations, of which 
90.9% (219) were authorized, conditions were imposed for 4.2% (ten), and 1.2% (three) were 
rejected, th e remainder (nine) were cases that were not admissible or those for which the merger 
transaction was abandoned (Table 3.21).  
Table 3.21 Competition cases examined by the COFECE, 2012 -2016 (Q2)  
 2012  2013  2014  
(Q4)  2015  
(Q4)  2016  
(Q2)  
Investigations into monopolistic practices       
Initiated during the period  39 13 0 3 2 
Following a complaint  35 11 0 1 1 
Ex officio  4 2 0 2 1 
Concluded during the period  37 8 4 1 2 
Closed owing to the absence of evidence  31 5 4 0 1 
Sanctions  6  0 1 1 
Mergers       
Notified during the period  94 53 41 36 41 
Concluded  96 45 34 31 35 
Authorized  86 44 30 26 33 
Conditions imposed  6 0 2 1 1 
Rejected  2 0 0 1 0 
Other (transactions not submitted, inadmissible or withdrawn ) 2 1 2 3 1 
Note:  Data prior to the period when the COFECE commenced operations in September  2013 come from the 
former Federal Competition Commission (CFC).  
Source:  CFC (2013), Informe Anual 2012 ; and COFECE (several years), Informe trimestral , viewed at:  
https://www.cofece.mx/cofece . WT/TPR/S/35 2 • Mexico  
 
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  3.165.   At the end of the second quarter of 2016, the IFT's investigating authority was also in the 
process of dealing with six investigation procedures into the probable occurrence of 
anticompetitive practices and an action to determine the existence of substantial market power.  
3.3.2.2   Price controls  
3.166.   In Mexico, the regulatory framework governing price controls is to be found in Article  28 
(third paragraph) of the Constitution and in the LFCE. Dur ing the review period, the section on 
determination of prices in Article  28 of the Constitution remained unchanged and the publication of 
the LFCE in 2014 did not entail any substantial amendments in this regard.  
3.167.   Article  28 of the Constitution provides tha t the law may establish the bases for setting 
maximum prices for articles, commodities or products considered as essential for the country's 
economy or for popular consumption in order to prevent shortages or price increases. The LFCE 
provides that it is t he exclusive prerogative of the Federal Executive to determine by decree those 
goods and services that may be made subject to maximum prices, provided that there are no 
effective competition conditions in the relevant market. It is up to the COFECE or the IFT to 
determine in a declaration that there are no effective conditions of competition. The SE determines 
the prices for the goods or services on the basis of criteria that prevent shortages. PROFECO, 
coordinated by the SE, is responsible for inspection, monitoring and penalties in respect of such 
prices, pursuant to the Federal Consumer Protection Law.  
3.168.   Mexico imposes regulations or controls on the price of natural gas, liquefied petroleum gas 
(LPG), gasoline (petrol) and diesel fuel, electricity and medic ines. First -hand sales of natural gas 
and LPG are regulated by the Regulatory Commission for Energy (CRE). The maximum selling 
price of LPG to the final user is determined by the SE through monthly presidential decrees, but 
prices will be freed in 2017. Pr ices for petrol and diesel fuel are determined by the SHCP on the 
basis of a formula established monthly to reflect the trend in reference prices and include an 
amount per litre to cover the cost of supply activities, which must be added to the taxes 
applicable. The prices thus determined must fall within a fluctuation band of 3% (upwards or 
downwards) compared to the 2015 price.  
3.169.   Electricity prices have traditionally been set by the SHCP. Following the energy reform, 
they are to be determined by the CRE, pu rsuant to the Law on the Electricity Industry.118 The 
SHCP may, however, impose different rates for certain basic supply sectors. Until the CRE issues 
the relevant provisions, the rates determined by the SHCP continue to apply.  
3.170.   The maximum retail price of me dicines and inputs are determined by the SE, taking into 
account the views of the Ministry of Health; the SHCP may intervene in the determination of prices 
if the medicines are being produced by the public sector.119 The price of medicines for which 
patents are still in force (which are the subject of the direct bidding procedure provided for in the 
Law on Public Sector Procurement, Leases and Services  (LAASSP) are negotiated annually by the 
Coordinating Commission for the Negotiation of Prices for Medicines and Other Health Inputs.120 
3.3.3   State -owned enterprises  
3.171.   In 2000, Mexico notified that it did not have any State -trading enterprise according to the 
definition in Article XVII of the GATT 1994.121 Since then, Mexico has not submitted any further 
notification to the  WTO in relation to State trading  
                                                
118 Article  58 of the Law on the Electricity Industry, the Law on Geothermal Energy and additions and 
amendments to various provisions of the Nat ional Waters Law (published in the Official Journal of 
11 August  2014), which repeals the Law on the Public Electric Power Service (published on 22  December  1975, 
the latest amendment was published on 9  April 2012). Document available at: 
http://www.dof.gob.mx/nota_detalle.php?codigo=5355986&fecha=11/08/2014 . 
119 Article  31 of the General Law on Health (published in the Official Journal of 7  February  1984, latest 
amendment o f 1 June 2016). Document available at: 
http://www.diputados.gob.mx/LeyesBiblio/pdf/142_161216.pdf . 
120 Decision creating the Coordinating Commission for the Negotiation of Prices for Medicines and other 
Health Inputs (published in the Official Journal of 26  February  2008) and its amending decision (published on 
23 August  2012). Viewed at: http://dof.gob.m x/nota_detalle.php?codigo=5030450&fecha=26/02/2008 . 
121 WTO document G/STR/N/6/MEX of 31  July 2000.  WT/TPR/S/35 2 • Mexico  
 
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  3.172.   Mexico's State sector consists of financial and non -financial enterprises. The financial 
sector comprises enterprises in which the State has a majority holding, decentralized public bodies 
and public sector trusts providin g financial services, which have their own legal status and assets, 
namely: national credit companies (development banking), Financiera Rural and the Institute of 
the National Fund for Workers' Consumption, public trust funds (promotion funds), national 
auxiliary credit organizations and national insurance and bonding institutions. Pursuant to the 
Federal Law on Parastatal Bodies, each year the SHCP must publish in the Official Journal the list 
of parastatal bodies that form part of the Federal Government.122 
3.173.   Non-financial parastatal bodies consist of companies in which the Federal Government, 
state or municipal governments or one or more of their parastatal bodies, jointly or separately, 
own over 50% of the registered capital, appoint the majority of members of the governing board 
or board of directors, or appoint the president or director -general with the power to veto 
agreements by the board. Their main purpose is to produce goods and services for sale at market 
prices and they are directly or indirectly con trolled by government departments. This sector also 
includes enterprises similar to businesses but which are not set up as such, even though they 
operate as businesses, in other words, their operations are conducted autonomously and 
independently of the de partments owning them. Such enterprises are usually self -sufficient as 
regards funding. Nevertheless, on an exceptional basis, they may receive transfers from the 
Government if their income from prices and rates fails to cover their production costs or to allow 
them to invest in facilities or make financial investments.123 
3.3.4   Government procurement  
3.174.   Transactions and procedures for government procurement and contracts are mainly 
governed by the Constitution (Article 134), the Law on Public Sector Procurement, Leas es and 
Services  (LAASSP), the Law on Public Works and Related Services (LOPSRM) and their respective 
implementing Regulations, as well as by the provisions laid down in the FTAs signed by Mexico. 
Public -private partnership projects are not usually governed  by the provisions in the LAASSP or the 
LOPSRM.124 Mexico has not signed the WTO Agreement on Government Procurement and does not 
participate as an observer in the WTO Committee on Government Procurement.  
3.175.   During the period under review, both Laws were amende d as a result of the new Mexican 
Petroleum Law (2014) and the Law on the Federal Electricity Commission (2014), which provide 
that procurement, leasing and services contracted by State -owned production enterprises (EPE) 
and their subsidiaries fall outside the scope of the laws on government procurement 
(Table  3.22).125 
                                                
122 List of parastatal bodies belonging to the Federal Government . Online information viewed at: 
http://www.dof.gob.mx/nota_detalle.php?codigo=5447909&fecha=15/08/2016 . 
123 SHCP (2013), Manual de contabilidad gubernamental para el sector  paraestatal federal, Clasificación 
del Sector Paraestata l. Viewed at: 
http://www.shcp.gob.mx/LASHCP/ MarcoJuridico/ContabilidadGubernamental/SCG2014/paraestatal/manual_pa
raestatal/doc/capituloiii/mp3a01_2014.pdf . 
124 Law on Public -Private Partnerships (Article  7) (published in the Official Journal of 16  January  2012; 
latest amendment published in the Offic ial Journal of 21  April 2016).  
125 Mexican Petroleum Law (published in the Official Journal of 11  August  2014); and Law on the Federal 
Electricity Commission (published in the Official Journal of 11  August  2014).  WT/TPR/S/35 2 • Mexico  
 
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  Table 3.22 Amendments to the LAASSP and the LOPSRM introduced between 2012 and 
2016  
Legal instrument amending the Law  Amendments introduced  
Law o n Public Sector Procurement, Leases and Services (LAASSP)  
Decree issuing the Mexican Petroleum Law 
and the Law on the Federal Electricity 
Commission, and amending and repealing 
various provisions of the Federal Law on 
Parastatal Bodies; the LAASSP; and th e Law 
on Public Works and Related Services of 
11 August  2014.  The LAASSP has been amended to exclude from its scope procurement, 
leases and services contracts entered into by State -owned production 
enterprises (PEMEX and the CFE) and their production subs idiaries. 
Previously, this exclusion only applied partially to PEMEX and the CFE 
(substantive activities).  
Decree amending Articles 14 of the LAASSP 
and 34 of the General Law on Gender 
Equality of 10  November  2014.  The LAASSP has been amended to extend p references to companies 
which implement policies for gender equality, for disabled persons or 
companies which employ disabled persons, and to micro, small or 
medium -sized enterprises producing goods involving technological 
innovation.  
Law on Public Works  and Related Services (LOPSRM)  
Decree issuing the Mexican Petroleum Law 
and the Law on the Federal Electricity 
Commission of 11  August  2014.  The LOPSRM has been amended (third paragraph of Article  1) to exclude 
from its scope public works and services con tracts entered into by 
State -owned production enterprises (PEMEX and the CFE) and their 
production subsidiaries. Previously, this exclusion only applied partially 
to PEMEX and the CFE (substantive activities).  
Decree adding Section XXI to Article  31 of 
the Law on Public Works and Related 
Services of 13  January  2016.  Criteria have been added with regard to the procedure/requirements to 
be specified in the public invitation to tender.  
Source:  WTO Secretariat.  
3.176.    The Ministry of Public Administration (SFP) is the Federal authority responsible for 
government procurement in Mexico; it also determines policies and guidelines for government 
procurement at the Federal level. At the sub -Federal level, procurement by federative entities is 
governed by their own law s and procedures. The SFP is also in charge of issuing the administrative 
provisions necessary for compliance with the LAASSP and the LOPSRM and for promoting a clear 
government procurement policy. For this purpose, the SFP has to take into account the vie ws of 
the SHCP and, where applicable, those of the SE. It also investigates irregularities and penalizes 
bidders or suppliers who break the law.  
3.177.   There were no major changes to procurement procedures during the review period and 
they remain the same as thos e followed in 2012. Government procurement policy did not change 
either. The LAASSP provides for three types of procurement procedure and government 
departments and bodies have to choose the one which, depending on the nature of the 
procurement, offers the  State the best available terms as regards price, quality, financing and 
availability. The three types of procedure are: public invitation to tender; invitation to at least 
three bidders; and direct award of a contract. According to the national government  procurement 
scheme and based on the LAASSP, the value of each contract may not exceed the maximum 
amount established in the Federal Expenditure Budget published each year.126 There are no 
thresholds determining the use of a particular type of government pro curement procedure.  
3.178.   As a general rule, government procurement contracts are awarded by means of a p ublic 
invitation to tender so that bids can be freely submitted in closed envelopes, which are opened in 
public. The other two procedures are used in special  cases and their use must be justified in 
writing. They are used, for example, when: (a) there are no alternative or replacement goods or 
services or there is only one possible supplier in the market, or a person has exclusive use of a 
patent, copyright or  other exclusive rights, or in the case of works of art; (b) there is a risk for 
public order, the economy, health, security or the environment in Mexico as a result of an event of 
force majeure ; (c) there are justified reasons for purchasing or leasing go ods of a particular brand; 
and (d) the goods to be purchased are perishable goods, or staple or semi -processed grains or 
foods. Contracts awarded using these two procedures, and which can be justified in view of the 
amount of the transaction, may not accou nt for more than 30% of the budget for procurement, 
                                                
126 The Federal Expenditure Budget for fiscal y ear 2016 was published in the Official Journal of 
27 November  2015.  WT/TPR/S/35 2 • Mexico  
 
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  leases or services of the department or entity (Article 42 of the LAASSP). In addition to these 
procedures, there are also special government procurement procedures in each state.127 
3.179.   There are three forms o f public bidding: public bidding by Mexican nationals; public bidding 
by international bidders under an agreement and open public bidding for international bidders 
(Article  28 of the LAASSP). Each department decides which form of bidding is to be used in e ach 
case. Only Mexican nationals may take part in national bidding procedures and the goods to be 
purchased must be produced in Mexico with a minimum of 65% local content. Mexico gives priority 
to domestic suppliers in order to foster economic development.128 In international bidding covered 
by an agreement, only Mexican or foreign bidders from countries with which Mexico has a trade 
agreement containing a section on government procurement may participate, and the goods to be 
purchased must comply with the ru les of origin criteria in the agreement. Any bidder may take 
part in open international bidding and the goods or services may be of any origin. This procedure 
is followed when a national invitation to tender has been issued but has been unsuccessful or whe n 
this is specified in contracts financed by external loans granted to the Federal Government (or with 
their guarantee).  
3.180.   Depending on the procedure followed, public bidding may be in person, electronic or 
mixed, and this is decided by each department and s pecified in the invitation. If the procedure is 
public bidding in person, bids must be submitted in writing at the time the bids are to be opened, 
unless the invitation specifies that they can be submitted by post. The other procedures 
(information session s, sessions at which bids are presented and opened and the final decision) all 
take place in the presence of the bidders. In electronic public bidding, all the procedures are 
conducted through CompraNet, and in mixed bidding, the bidders may choose to take  part in 
person or electronically (Article  26 bis of the LAASSP).  
3.181.   Mexico still gives preferences to Mexican bidders in open international bidding. These 
preferences only apply to those countries with which Mexico has no trade agreement on 
government procur ement. During the review period, the margin of preference applied in open 
international bidding did not change and remains at 15% of the lowest price in the domestic 
market for goods of Mexican origin in comparison with imported goods (Articles 14 and 28 o f the 
LAASSP).129 Moreover, since 2014, where applicable, points are also awarded to 
Mexican  companies applying gender equality policies and practices, policies for the disabled and 
also companies which employ disabled workers (at least 5% of the total workf orce). Points are also 
given to micro, small and medium -sized companies producing goods incorporating technological 
innovation, on the basis of a report prepared by the Mexican Industrial Property Institute (IMPI).130 
Also, in January  2016, the LOPSRM was am ended inter alia  to require the public invitation to 
tender to show "the minimum percentage of local labour which bidders must incorporate in the 
works or services to be supplied".131 
3.182.   The Government Procurement Policy Unit (UPCP), part of the SFP, is respons ible for the 
CompraNet electronic public information system on procurement, leases and services. This system 
allows bidding procedures to be followed from publication of the invitation up to the final decision. 
Registration and use of the system is free of  charge. In order to be registered and able to use the 
system, businesses must have, among other things,  an advanced electronic signature (FIEL), 
issued by the Tax Administration Service (SAT). Foreign bidders use the electronic means of 
identification det ermined by the SFP, in which case, the electronic means of identification needed 
to be able to use CompraNet is generated by the system itself, following receipt of the legally 
certified documents and information required . 
3.183.   In 2015, CompraNet recorded gover nment procurement amounting to 
Mex$479,952  million (Table 3.23). Of this amount, 34.9% corresponded to national public bidding, 
                                                
127 Guía práctica de compras públicas . Viewed at: http://imco.org.mx/wp -
content/uploads/2013/7/ Guia_de_compras_publicas_011012.pdf . 
128 Idem. 
129 This implies that the price of the Mexican bid taken into account for the purpose of comparison 
between Mexican and foreign goods is the cost of the Mexican goods minus 15%.  
130 Amended by the Decree amending A rticle 14 of the Law on Public Sector Procurement, Leases and 
Services, and Article 34 of the General Law on Gender Equality (published in the Official Journal of 
10 November  2014).  
131 Section XXI of Article  31 of the LOPSRM.  WT/TPR/S/35 2 • Mexico  
 
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  25.0% to international public bidding and the remainder to bidding upon invitation to at least 
three  persons and direct award of  the contract.  
Table 3.23 Amount and number of contracts by type of bidding procedure registered by 
CompraNet, 2011 -2015  
(Mex$  million)  
 Contracts  
2011  2012  2013  2014  2015  
No. Amount  No. Amount  No. Amount  No. Amount  No. Amount  
Public invitation 
to tender  14,360  148,675  22,745  206,036  21,571  207,810  22,995  332,069  22,822  285,719  
National  9,725  73,306  15,673  110,407  15,030  118,219  15,725  199,475  15,569  165,538  
International  4,635  75,369  7,072  95,629  6,541  89,591  7,270  132,594  7,253  120,182  
Open 
international  1,685  5,744  2,816  25,974  2,726  11,203  3,189  30,858  2,271  9,666  
International 
under an 
agreement  2,950  69,626  4,256  69,655  3,815  78,388  4,081  101,736  4,982  110,516  
Invitation to at 
least three 
persons  9,516  13,414  15,505  34,019  17,279  40,239  18,600  49,455  16,311  46,441  
Direct award of 
a contract  61,547  74,187  88,091  99,255  90,997  120,681  100,240  151,348  127,977  147,792  
Total 85,423  236,275  126,341  339,310  129,847  368,730  141,835  532,872  167,110  479,9 52 
Note:  Contracts recorded by the Federal Government.  
Source:  CompraNet relational database.  
3.3.5   Trade -related intellectual property rights (IPRs)  
3.184.   The intellectual property regime is governed by the 1998 Industrial Property Law, the 
1996 Copyright Law and th e 1996 Federal Law on New Plant Varieties, amendments thereto and 
their respective implementing Regulations.  
3.185.   The authorities responsible for managing intellectual property rights are the IMPI, the 
National Copyright Institute (INDAUTOR) and the National Se ed and Inspection Service (SNICS).  
3.186.   Mexico is party to 22 treaties of the World Intellectual Property Organization (WIPO).132 
During the review period, it signed the Beijing Treaty on Audiovisual Perfomances (2012) and 
ratified the Marrakesh Treaty to Facilit ate Access to Published Works by Visually Impaired Persons 
and Persons with Print Disabilities (2015). This Treaty came into force on 30  September  2016.133 
The Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks, 
to which Mexico acceded in 2012, came into force in 2013.  
3.3.5.1   Industrial property rights  
3.187.   The 1998 Industrial Property Law (LPI), which was last amended in 2012, and its 
implementing Regulations, still govern all matters relating to patents, utility models, industr ial 
designs, industrial secrets, trademarks, appellations of origin and layout -designs of integrated 
circuits134 (Table A3.5).  
3.188.   As regards the procedure for patenting an invention, an application has to be filed with the 
IMPI, which examines its form and subs tance and, depending on the result of the examination, 
grants or refuses the patent. The IMPI may base its decision on the conclusions of a substantive 
examination conducted by a foreign patent office with which it has an agreement.135 On average, 
the IMPI t akes four and a half years from the date on which an application is filed to the date on 
                                                
132 Online information from WIPO . Viewed at:  
http://www.wipo.int/treaties/en/ShowResults.jsp?country_id=123C . 
133 Idem. 
134 The latest amendment to the Industrial Property Law was published in the Official Journal of 
9 April 2012. The latest amendment to the implementing Regulations was published in the Official Journal of 
10 June 2011.  
135 The IMPI has signed memorandums of understanding with the European Patent Office and the offices 
of Canada, China, Japan, the Rep ublic of Korea, Portugal, Spain and the United States (IMPI 2015). Informe 
Anual 2014 . Viewed at:  http://www.gob.mx/impi/documentos/informe -anual -del-impi. WT/TPR/S/35 2 • Mexico  
 
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  which it is granted. The patent gives the holder the exclusive right to work the patent, which may 
be assigned by means of a licence. A patent is valid for 20 years as  of the date of the application 
and protection may not be renewed. An annual fee ranging from Mex$1,162 to Mex$1,536 must 
be paid in order to maintain a patent.136 The IMPI may grant (non -exclusive) compulsory licences 
if a patent is not being worked or for reasons of emergency, national security or public health. 
Mexico has not granted any compulsory licence since 2012. Parallel imports of patented products 
are not allowed.  
3.189.   Trademarks are also protected by the LPI and its implementing Regulations. To registe r a 
trademark, an application must be filed with the IMPI, which examines it and then decides whether 
or not to grant registration. Since 2016, the IMPI has published the registrations granted, as well 
as the applications. Collective and well -known or famo us trademarks must be registered in order 
to be protected. For such a trademark to be registered, however, a declaration of brand awareness 
issued by the IMPI and valid for five years has to be obtained and published in the Industrial 
Property Bulletin. Re gistration of a trademark gives the owner the exclusive right to exploit it, a 
right which may be assigned by means of a licence. The IMPI usually takes six months to complete 
the procedure for registering a trademark. An annual fee of Mex$2,628 is payable  to ensure that 
registration does not expire.137 Registration may lapse if the trademark has not been used for 
three consecutive years. Registration gives a term of protection lasting ten years from the date of 
application. This term may be renewed, indefini tely, but in order to do so its owner must prove 
that products or services bearing the trademark are being marketed.  
3.190.   In 2015, PROFECO signed a cooperation agreement with the IMPI to prevent the 
registration of products and trademarks that may mislead consu mers by using "arbitrary 
expressions" such as "the best".138 The previous regime only allowed a trademark to be opposed 
after registration. In August  2016, however, a system came into force allowing registration of a 
trademark to be opposed prior to its regi stration. The purpose of the opposition system is to 
improve decision -making procedures in the IMPI and reduce the number of annulment procedures. 
This system provides for the publication of registration applications in order to enable opposition to 
be voi ced, citing any of the reasons for which a trademark may not be registered pursuant to the 
provisions in the LPI. It is not necessary to have a legitimate interest in the trademark in order to 
oppose registration, and any person who considers that the regi stration application violates the 
LPI's provisions may do so. The LPI gives a non -renewable period of one month as of the 
publication of the application in which to oppose registration and pay the corresponding opposition 
fee. At the end of this period, th e IMPI makes the opposition known and calls on the registration 
applicant to express his opinion (if he so wishes) within a non -renewable period of one month. In 
its substantive examination, the IMPI may take into account the reasons expressed both as 
regards opposition and the replies of the applicant.139 Mexico's system for opposition does not 
provide for suspension of the registration procedure, therefore, the IMPI proceeds with the 
examining the formal aspects of the registration even when there is opposi tion. Both procedures 
run simultaneously so the new system in no way affects the period required by the IMPI for 
registering a trademark (an average of six months).  
3.191.   The LPI and its implementing Regulations also protect utility models. Registration gives th e 
owner the exclusive right of exploitation, which may be assigned by means of a licence. The IMPI 
takes an average of four and a half years from the date of filing the application to register a utility 
model. The annual fee for maintaining registration ra nges from Mex$1,099 to Mex$1,290.140 Utility 
models are protected for a non -renewable term of 15 years from the date of the application.  
3.192.   The protection of industrial designs is also regulated by the 1998 LPI and its implementing 
Regulations. In this case as well, the IMPI is the body responsible for granting registration, which 
necessitates an average of one year from the date of filing the application. Industrial designs are 
                                                
136 Online information from t he IMPI . Viewed at: http://www.gob.mx/impi . 
137 Online information from the IMPI . Viewed at http://www.gob.mx/impi .  
138 PROFECO press release 0011 of 2  March  2015. Viewed at: 
http://www.profeco.gob.mx/prensa/prensa15/marzo15/bol0011.asp . 
139 Draft decree amending and supplementing various provisions of the Industrial Property Law. Viewed 
at: http://sil.gobernacion.gob.mx/Archivos/Documentos/2015/12/asun_3318384_20151210_1449173771.pdf . 
140 Online information from the IMPI . Viewed at:  http://www.gob.mx/imp . WT/TPR/S/35 2 • Mexico  
 
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  protected for a non -renewable term of 15 years from the date of application and an a nnual fee 
ranging from Mex$1,107 to Mex$1,185 is payable to maintain registration.141 
3.193.   The 1998 LPI and its implementing Regulations also protect layout -designs of integrated 
circuits. The term of protection is not renewable and lasts for ten years from the d ate of filing the 
registration application. The annual registration fee ranges from Mex$1,099 to Mex$1,290.142 
3.194.   Appellations of origin (AO) are also protected under the LPI.143 The procedure for 
registering an AO may be initiated by the party concerned or ex officio by the IMPI. Declaration of 
protection for an AO is issued by the IMPI and does not expire as long as the original conditions for 
which it was issued persist and only ceases to have effect if the IMPI issues another declaration. 
The State is the owne r of AOs and authorizes their use through the IMPI for a renewable term of 
ten years. Authorization is given to any natural or legal person engaged in the extraction, 
production or manufacture of the products protected by the AO, engaging in this activity within the 
territory specified in the declaration and complying with the official standards determined by the 
SE for the product in question. Users of AOs are obliged to use them in the way in which they are 
declared protected. If they are not used in the way specified in the authorization, the AOs are 
cancelled (Articles 156 -178 of the LPI).  
3.195.   In Mexico, unlawful use of a trademark is considered an offence, while unlawful or 
unauthorized use of an AO is simply an administrative misdemeanour. Repetition of th e conduct is, 
however, considered an offence (Articles 213 and 223 of the LPI).  
3.196.   Mexico does not at present have any legislation protecting geographical indications (GI), 
although the LPI provides for effective protection against unlawful use and registrati on of GIs 
inasmuch as it prohibits trademarks which include commonly used expressions to refer to the 
geographical origin of goods or services. Furthermore, some specially identified foreign GIs are 
protected under bilateral international treaties to which  Mexico is party. In addition, the Federal 
Law on Metrology and Standardization includes elements which approximate certification marks for 
GIs as it is provided that products or services subject to Mexican Official Standards (NOMs) and 
Mexican Standards ( NMXs) may voluntarily display official signs when their conformity has been 
assessed and the signs are accompanied by the trademarks registered according to the provisions 
in the LPI (Article  76). 
3.197.   Undisclosed information is also protected under the LPI. Pr otection is automatic if the 
criteria indicated in the Law are met and confidentiality is maintained (Table A3.5).  
3.198.   The number of applications for patents and registration submitted to the IMPI rose 
between 2012 and 2015 (Table 3.24). Most of the patents we re requested using the registration 
procedure set out in the PCT. The number of patent applications filed by Mexican residents 
remained small, accounting for 7.5% of the total in 2015. According to the IMPI, the small 
percentage of applications filed by re sidents may, among other things,  be attributable to the low 
level of investment in R&D or to ignorance of the industrial property system.144 
Table 3.24 Industrial property indicators, 2012 -2016  
(Number)  
 2012  2013 2014  2015  2016  
(June)  
Patents       
Patent applications  15,314  15,444  16,135  18,071  8,761  
applications filed under the PCT procedure (%)  75.3 76.2 76.9 76.3 76.3 
applications filed by residents (%)  8.4 7.8 7.7 7.5 6.1 
Patents granted  12,330  10,343  9,819  9,338  4,254  
Utility models       
                                                
141 Idem. 
142 Idem. 
143 Mexico has 14 AOs: five concern beverages (Tequila, Mezcal, Bacanora, Soto and Charanda); three 
are for handicrafts (Talavera, Olinalá and Ámbar del Chiapas) and six are for agricultural products (C afé de 
Chiapas, Café Veracruz, Mango Ataulfo, Vainilla de Papantla, Chile Habanero de Yucatán and Arroz de Morelos). 
Online information from the IMPI . Viewed at: http://www.gob.mx/imp . 
144 IMPI, Programa de Innovación Pr otegida 2013 -2018 (published in the Official Journal of 9  May 2015). 
Viewed at: http://transparencia.impi.gob.mx/Paginas/Planes -programas -e-informes.aspx . WT/TPR/S/35 2 • Mexico  
 
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   2012  2013 2014  2015  2016  
(June)  
Applications for registration  593 714 707 661 269 
Registration granted  241 190 178 215 79 
Industrial designs       
Applications for registration  4,137  4,011  4,080  3,999  2,099  
Registration granted  2,611  2,825 2,371  2,852  1,244  
Layout -designs of integrated circuits       
Applications for registration  2 3 2 0 5 
Registration granted  0 1 0 0 2 
Trademarks       
Applications for registration  98,628  107,063  118,74
5 134,342  67,929  
Registration granted  75,992  79,365  83,970  94,639  54,166  
Appellations of origin       
Applications for declaration of protection  0 1 0 0 0 
Declarations of protection granted  0 0 0 0 1 
Source:  IMPI (2016), IMPI en cifras , viewed at: http://www.impi.gob.mx/Paginas/IMPICifras.aspx ; and IMPI 
(2015), Informe anual 2014 , viewed at: http://www.impi.gob.mx/Informes%20Anuales/IA2014.pdf . 
3.199.   Articles in common use  or for consumption and various industrial techniques account for 
the majority of patents and utility models (Chart 3.10).  
Chart 3.10 Patents and utility models by type of technology, 2012 -2016 (June)  
05,00010,00015,000
2012 2013 2014 2015 January-
June 2016
Electricity Physics
Mechanics, lighting, heating, armaments, blasting Fixed construction
Textiles and paper Chemicals and metallurgy
Miscellaneous industrial techniques Articles of common use and for consumption(Number)
050100150200250
2012 2013 2014 2015 January-
June 2016(Number ) Patents Utility models
 
Source : IMPI (2016), IMPI en cifras . Viewed at: http://www.impi.gob.mx/Paginas/IMPICifras.aspx . 
3.200.   Applications to register trademarks and industrial designs can be filed via the IMPI's 
website, which ca n also be used to make payments and view the Industrial Property Bulletin.  
3.3.5.2   Copyright and related rights  
3.201.   During the review period, the Federal Copyright Law (LFDA) was the subject of a number 
of amendments, the latest in 2016.145 The following are some of the  amendments: (a) an increase 
                                                
145 The lates t amendment to the Federal Copyright Law, published in the Official Journal on 
13 January  2016 (latest amendment to the implementing Regulations published in the Official Journal of 
14 September  2005).  WT/TPR/S/35 2 • Mexico  
 
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  in the number of instances in which a work may be used without paying royalties (for example, no 
authorization from the author is required to publish works intended for disabled persons, provided 
that it is for non -profit -makin g purposes); (b) changes to the powers of INDAUTOR, which may 
now pay inspection visits and require further information when investigating alleged administrative 
violations; (c) an increase in the number of practices deemed to be infringement, for example,  the 
fixing of works, audiovisual works, phonograms or videograms; and (d) inclusion of clauses to 
protect copyright in televised works. The latter change followed the entry into force of the new 
Federal Telecommunications and Broadcasting Law in 2014, whi ch obliges operators of pay 
television channels to broadcast open/free television signals through their own systems.  
3.202.   Literary and artistic works and related rights are protected in Mexico even if they have not 
been registered. Nevertheless, registration in  the Public Copyright Register affords authors and 
right holders legal security and allows them to make their works known (Article 162 of the LFDA).  
3.203.   The legislation gives authors exclusive personal privileges (moral rights) and economic 
privileges (economi c rights). Protection of moral rights is indefinite, whereas protection of 
economic rights lasts for the author's lifetime plus 100 years. The protection given to performers 
and phonogram producers is 75 years, for videogram producers and broadcasting orga nizations, it 
is 50 years.  
3.204.   Economic rights may be assigned through licences. Unless otherwise specified, licences are 
granted for five years. In special cases, however, a licence may be valid for over 15 years, for 
example, when publication of a work neces sitates large -scale investment or in the case of musical 
works which require a longer period for dissemination (Article  33 of the LFDA and Article  17 of its 
implementing Regulations).  
3.3.5.3   New plant varieties  
3.205.   New plant varieties are protected by the Federal Law  on New Plant Varieties of 1996 and 
its implementing Regulations.146 There have been no major changes to the procedure for obtaining 
a plant breeder's right since 2012 (Table A3.5). The SNICS in the SAGARPA is responsible for 
processing applications and gran ting breeders' rights. The exclusive right to exploit a new plant 
variety is valid for 18 years for perennial species and for 15 years for other species, and cannot be 
renewed in either case.147 A breeder may assign his exclusive right to third persons by me ans of a 
licence. Pursuant to the Law, however, in some cases the consent of the breeder is not required to 
exploit a new variety of plant, for example, for research purposes. In addition, the SNICS may 
issue emergency licences because of failure to exploi t the variety or because of shortages.  
3.3.5.4   Provisions for enforcement of intellectual property rights  
3.206.   Any infringement of intellectual property rights can be denounced through administrative 
channels, via the IMPI (industrial property rights and copyright when  the infringement is for 
profit), INDAUTOR (copyright) or SAGARPA (new plant varieties); through civil proceedings before 
the courts; or through criminal proceedings brought by the Public Prosecutor's Office (PGR).  
3.207.   The General Customs Administration (AGA) may suspend the free movement of goods that 
infringe intellectual property rights at the border, including those in transit, subject to approval by 
the competent administrative or judicial authority. The AGA may not prohibit the entry of such 
goods into th e Mexican market.148 It may, however, ex officio , suspend customs clearance of 
counterfeit goods for five days, if the trademark has been registered by the owner in the Customs 
                                                
146 Latest amendment to the Federal Law on New Plant Var ieties, published in the Official Journal of 
9 April 2012 (the implementing Regulations were not amended).  
147 Articles  4-5, 20 and 25 of the Federal Law on New Plant Varieties.  
148 Online information from the International Intellectual Property Alliance (IIPA ). Viewed at:  
http://www.iipawebsite.com/rbc/2016/2016SPEC301MEXICO.PDF . WT/TPR/S/35 2 • Mexico  
 
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  database (called the Trademark Database).149 In such cases, the AGA informs the aut horities or 
the owner of the incident so that the relevant action can be taken.150 
3.208.   In 2014, following an order from the IMPI and the PGR, the AGA retained over 
2 million  counterfeit goods at the border with an estimated value of Mex$5.7  million. The AGA did 
not only withhold goods whose final destination was the Mexican market but also goods in 
transit.151 
3.209.   In 2014, the IMPI dealt with 600 administrative declarations concerning trade -related 
copyright infringement and 450 in respect of industrial property infrin gement. It also carried out 
over 4,300 inspections to ensure compliance with the legislation. Around 30% of the IMPI's 
inspections were carried out at the request of a party in relation to trade infringement and 
prevention of unfair competition (according to the definition in Article  6 bis of the Commercial 
Code). In 2014 as well, the IMPI seized over 6  million goods with an estimated value of 
Mex$18  million.152 
3.210.   The IMPI consults the parties concerned as to the destination of the goods seized, which 
may be ei ther donated or destroyed. The Asset Administration and Disposal Service  (SAE), a 
decentralized unit of the Federal Government, is responsible for destroying seized goods that 
infringe intellectual property rights.153 Such goods are usually destroyed to prev ent their sale.  
3.211.   The PGR has a specialized unit for investigating copyright and industrial property offences 
(UEIDDAPI), which oversees and monitors the application of the administrative regulations relating 
to intellectual property rights and prevents, inv estigates and proceeds against infringements and 
offences in this sphere.154 In 2015, the PGR established a special section within the UEIDDAPI to 
deal with digital piracy. According to information provided by the authorities, this section has 
undertaken num erous investigations and seized various pirated and counterfeit goods, in 
collaboration with the owners of the rights.155 
3.212.   Concerning digital piracy, the Coalition for Legal Access to Culture (CALC), which groups 
38 authors' associations, encourages cooperati on between owners of rights and Internet service 
providers. According to the CALC, however, the principle of the liability of Internet service 
providers needs to be introduced into the legal framework as currently they are not liable for 
Internet transacti ons involving illegal goods.156 
3.213.   PROFECO monitors compliance with Mexican Official Standards, including appellations of 
origin, for products requiring an assessment of conformity with a NOM and the issue of a 
certificate, as is the case for Tequila. PROFECO e stimates that there is a large percentage of illicit 
alcoholic beverages known as "agave spirits", the majority of which are sold as Tequila.157 
                                                
149 Over the period 2012 -2016 (November) 6,448 trademarks were registered in the AGA's Trademark 
Database.  
150 Online information from the European IPR Helpdesk . Viewed at:  http://www.latinamerica -ipr-
helpdesk.eu/sites/default/files/factsheets/es_aduanas_en_me xico.pdf . 
151 Ministry of Finance and Public Credit (2015), Informe 2014 Mesa de Combate a la Ilegalidad.  Viewed 
at: 
http://www.sat.gob.mx/ sala_prensa/combate_economia_ilegal/Documents/Inf_combate_ilegalidad_07042015.
pdf. 
152 IMPI (2015), Informe anual 2014 . Viewed at:  http://www.gob.mx/impi . 
153 Article 75 of the Federal Law on the Administration and Dispo sal of Public -Sector Assets (latest 
amendment published in the Official Journal of 9  April 2012).  
154 Online information from the PGR . Viewed at:  http://www.pgr.gob.mx/ Unidades -
Especializadas/ueiddapi/Paginas/default.aspx . 
155 PGR, Intellectual Property Enforcement in Mexico , 10th Session of the Advisory Committee on 
Enforcement, WIPO, 23 -25 November  2015. Viewed at:  
http://www.wipo.int/edocs/mdocs/enforcement/en/wipo_ace_10/wipo_ace_10_panel_2_mexico.pdf ; and 
Office of the United States Trade Representative (USTR)  (2016), Special 301 Report . Viewed at:  
https://ustr.gov/sites/default/files/USTR -2016-Special -301-Report.pdf . 
156 Online information from the International Intellectual Property Alliance (IIPA) . Viewed at:  
http://www.iipawebsite.com/rbc/2016/2016SPEC301MEXICO.PDF . 
157 Draft decree on the creation of the Law on Geographical Indications and Appellations of Origin. 
Viewed at: 
http://sil.gobernacion.gob.mx/Archivos/Documentos/2013/10/asun_3021658_20131017_1381936360.pdf . WT/TPR/S/35 2 • Mexico  
 
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  3.214.   During the review period, Mexico continued to implement the National Anti -Piracy Decision, 
whose aim is to defend  intellectual property rights by promoting public awareness, recovering 
market segments lost as a result of piracy and combating the production and sale of illegal 
products. The various institutions coordinate the measures to be adopted and also cooperate with 
the private sector. This is how the committee to support and protect copyright and industrial 
property rights (COIDAPI), headed by the PGR, came into being. The COIDAPI brings together 
public and private institutions (such as chambers of commerce), an d cultural institutions (such as 
authors' associations).158 
3.215.   In order to combat piracy, the IMPI also promotes involvement of the general public 
through the " Buzón de Piratería " (Piracy Mailbox), an electronic platform through which possible 
infringements of industrial property rights can be reported. The Institute undertakes to examine 
each allegation within a maximum of 48 hours.159 The Mailbox is one of the measures adopted 
under the National Anti -Piracy Decision.  
3.216.   In connection with the previous review, Mexic o indicated that the IMPI had signed 
agreements with various Mexican copyright and related rights associations to combat illegal 
downloading from the Internet. In 2012, several campaigns were launched in Internet cafes to 
inform owners and users about the use of illegal downloaders.160 These campaigns are still taking 
place, above all to prevent illegal downloading of music. Furthermore, since 2012 the IMPI has 
conducted a survey in some of the major cities on the consumption of counterfeit goods in order to 
make the public aware of the risks of consuming them.  
3.217.   According to a survey carried out in 2015 by the Center of Investigation for Development 
(CIDAC) and the American Chamber of Commerce in Mexico, the cost of counterfeit goods 
amounted to Mex$43,000  million in 2014.161 According to the CALC, in 2014 there were 
6,300  illegal downloads from the Internet, mostly of musical works (46%) and films and videos 
(19%).162 
3.218.   The penalties for administrative violation of the Industrial Property Law consist of fines (up 
to 20,000 minimum wages163), temporary closure (for up to 90 days) or definitive closure of the 
facility and detention of the perpetrator (maximum 36 hours). In the case of offences, the 
penalties include imprisonment (of two to six years) and a fine (of 100,00 0 minimum wages). 
Moreover, the Law obliges the offender to compensate the owner who has suffered damages; 
compensation is at least 40% of the selling price of the counterfeit good to the public.164 For 
copyright infringement, fines range from 5,000 to 15,00 0 minim um wages and may rise to 
40,000  minimum wages if the work is used for commercial purposes. In the case of new plant 
varieties, the fines range from 200 to 10,000 minimum wages.  
3.219.   International observers such as the International Intellectual Property Alliance (IIPA) 
acknowledge the efforts made at the Federal level to combat piracy, but consider that the 
measures adopted at the state and municipal levels are insufficient. The IIPA has also 
recommended that the IMPI and INDAUTOR be given greater resourc es to carry out their work in 
relation to intellectual property rights.165 Mexico appears on the United States "Special 301 – 
Priority Watch List".166 
                                                
158 PGR, Intellectual Property Enforcement in Mexico , 10th Session of the Advisory Commit tee on 
Enforcement, WIPO, 23 -25 November  2015.  
159 IMPI (2015), Informe anual 2014 . Viewed at:  http://www.gob.mx/impi . 
160 WTO document T/TP/M/279/Add.1 of 10  September  2013.  
161 CIDAC/AMCHAM (2015), Piratería, entendiendo el mercado "sombra" en México . Viewed at: 
http://cidac.org/esp/uploads/1/PIRATERIA_Entendiendo_el_mercado_sombra_en_Mexico__1_.pdf . 
162 CLAC (2015), Repor te Descargas Digitales 2015 , February. Viewed at: 
http://media.wix.com/ugd/5b1d95_f3d0db5cfa8a47dc9e2b1f0a6368a53d.pdf . 
163 An additional fine (15,000 minimum wages) may be i mposed for each day during which the violation 
persists.  
164 Article 221 bis of the LPI.  
165 Online information from the IIPA . Viewed at:  
http://www.iipawebsite.com/rbc/2016/2016SPEC301MEX ICO.PDF . 
166 USTR (2016), Special 301 Report . Viewed at: https://ustr.gov/sites/default/files/USTR -2016-Special -
301-Report.pdf . WT/TPR/S/35 2 • Mexico  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture  
4.1.1   Main features  
4.1.  The contribution of the agricultural sector (including cr op farming, livestock farming, forestry, 
fishing and other related services) to Mexico's GDP remained stable at 3.4% during the period 
2012-2015 (3.6% during the first half of 2016). However, annual growth was erratic. There has 
been no substantial change in the structure of the sector since 2012; in the first half of 2016, crop 
farming accounted for 65.9% of agricultural GDP (63% in 2012), livestock farming for 27.7% 
(30.1% in 2012) and the other activities (forestry, fishing, hunting and services related with 
farming and forestry) 6.6% (6.8% in 2012). The percentage of the population employed in the 
sector declined from 14.1% in 2012 to 12.8% in 2016 (first half) (Table 4.1).  
Table 4.1 Main indicators for the agricultural sector, 2012 -2016  
 2012  2013  2014  2015  2016  
Crop farming, livestock farming, hunting, forestry and fishing  
Share of GDP (% at current prices)  3.4 3.4 3.4 3.4 3.6a 
Real growth rate (% at 2008 prices)  7.4 0.9 4.2 0.4 3.4a 
Structure of the se ctor (% at 2008 prices)       
Crop farming  63.0 63.9 64.3 64.0 65.9a 
Animal breeding and raising  30.1 29.3 28.5 29.1 27.7a 
Forest management  3.5 3.4 3.3 3.4 3.2a 
Fishing, hunting and trapping  1.9 2.0 2.3 2.1 2.1a 
Services related with agricultural and forestry activities  1.4 1.4 1.6 1.4 1.2a 
Employment (% of working population, end of period)  14.1 13.8 13.4 13.5 12.8a 
Agricultural production (total volume in  thousands of tonnes)b 
Total agricultural production  .. .. .. .. .. 
Total perennial crops  339,008 391,430  481,928  655,714  .. 
Sugar cane (%)  79.0 80.0 82.8 87.2 .. 
Bananas (%)  4.1 3.5 2.8 2.1 .. 
Cherry coffee (%)  2.5 2.0 2.0 1.8 .. 
Avocados (%)  2.6 2.5 2.1 1.6 .. 
Total harvested crops  163,331  170,762  182,774  188,663  .. 
Maize (corn) (%)  50.1 54.1 51.2 54.6 .. 
Sorghum (%)  18.0 15.7 17.9 13.4 .. 
Wheat (%)  9.1 9.3 9.4 9.5 .. 
Beans (%)  2.7 3.6 3.8 3.0 .. 
Soya (%)  0.5 0.6 0.6 0.8 .. 
Rice (%)  0.4 0.5 0.5 0.6 .. 
Total meat  5,950  5,996  6,095  6,244  .. 
Poultry (%)  46.9 46.8 47.2 47.6 .. 
Bovine an imals (%)  30.6 30.1 30.0 29.6 .. 
Pigs (%)  20.8 21.4 21.2 21.2 .. 
Total fishing  1,687  1,746  1,634  1,389  .. 
Sardines (%)  42.8 41.7 34.4 32.0 .. 
Other (%)  57.2 58.3 65.6 68.0 .. 
Agricultural exports (WTO definition)c 
Value (US$  million)  22,452  24,095  25,583  26,916  15,015  
Most important products, according to HS chapter (% of total agriculture)  
08 – Edible fruit and nuts  16.8 17.1 19.5 21.2 23.2 
07 – Edible vegetables and certain roots and tubers  22.3 22.7 21.4 21.2 27.2 
22 – Beverages, spirits and v inegar  15.3 15.2 16.0 15.6 14.8 
19 – Preparations of cereals, flour, starch or milk  6.1 6.0 5.6 5.8 5.5 
17 – Sugars and sugar confectionery  6.4 8.5 6.7 5.8 5.3 
Agricultural imports (WTO definition)c  
Value (US$  million)  27,104  26,567  27,238  24,974  12,592 
Most important products, according to HS chapter (% of total agriculture)  
10 - Cereals  20.1 16.2 15.6 16.0 17.8 
02 – Meat and edible meat offal  13.1 14.9 16.9 15.3 13.8 
12 – Oil seeds and oleaginous fruits and miscellaneous  13.7 13.5 12.8 11.8 11.6 
04 – Dairy produce  6.0 7.3 7.4 6.6 6.1 
23 - Residues and waste from the food industries  5.7 5.9 6.1 6.4 6.4 
Agricultural trade balance (US$  million)  -4,652  -2,471  -1,655  1,941  2,424  
.. Not available.  
a Figures for first half of 2016.  
b National Institu te of Statistics and Geography (INEGI), October  2016.  
c The data for 2016 (October) are from the Ministry of Agriculture, Livestock, Rural Development, 
Fisheries and Food (SAGARPA).  
Source:  WTO Secretariat estimates, based on data provided by the Bank of M exico, SAGARPA and the INEGI 
Economic Information Bank (BIE). Online information viewed at: http://www.inegi.org.mx . WT/TPR/S/35 2 • Mexico  
 
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  4.2.  Perennial crop production volume almost doubled during the review period; the most 
important perenn ial crop is sugar cane, which in 2015 accounted for 87.2% of production of this 
type of product. Maize (corn) is the most important of the staple grain crops, accounting for 54.6% 
of staple grain production. Where fishing is concerned, the catch volume has  remained stable, 
although it fell in 2015. Sardines continue to be the most important species; however, their 
relative importance has declined as a result of the increase in the production of other species, such 
as tilapia and shrimp (Table 4.1).  
4.3.  Up until  2014, Mexico was a net importer of agricultural products; however, in 2015 exports 
exceeded imports. Mexican exports of agricultural products (WTO definition) increased from 
US$22,452  million in 2012 to US$26,916  million in 2015. The main export products are fruit and 
vegetables. The total value of Mexico's imports declined from US$27, 104 million in 2012 to 
US$24,974  million in 2015. The main agricultural imports include cereals (yellow maize), seeds 
and meat (Table 4. 1). 
4.4.  The Ministry of Agriculture, Lives tock, Rural Development, Fisheries and Food (SAGARPA) 
continues to be responsible for implementing agricultural and fishing policy, whose objectives are 
set out in the National Development Plan (PND) 2013 -2018 and in the Sectoral Development 
Programme for Agriculture, Fisheries and Food 2013 -2018.1 In the PND the agricultural and fishery 
sector is regarded as a strategic sector in view of its contribution to poverty reduction and 
economic development.2 
4.5.  One of the most important objectives of Mexican agricul tural policy is guaranteeing food 
security, an objective that it is intended to pursue by increasing productivity, including that of 
dwarf holdings, since small and medium -sized farming operations account for 80% of total 
Mexican agricultural producers.3 It is hoped to achieve this target by promoting: the sustainable 
use of water; domestic production of agricultural inputs (fertilizers and seed); research; access to 
credit; better protection against weather -related risks; and the development of the insuran ce 
market.4 
4.6.  The PND and the Sectoral Programme also set performance goals: for example, it is expected 
that by 2018 the average annual rate of growth of agricultural and fisheries GDP will reach 3%, 
that grain production (rice, beans, maize, sorghum, soya and wheat) will satisfy 75% of the 
demand, and that the agrifood trade balance will be in equilibrium.5 However, the achievement of 
some of these objectives will, in its turn, depend on the full implementation and effectiveness of 
the reforms introduced in  other sectors, such as the energy and financial sectors. For example, by 
introducing energy reforms it is planned to increase the supply of natural gas for the production of 
petrochemicals for manufacturing fertilizer.6 One of the objectives of financial reform is to 
strengthen development banking to allow more credit to be granted to priority sectors, including 
the agricultural sector. SAGARPA is also implementing a series of support programmes for 
agriculture.  
                                                
1 PND. Viewed at:  http://pnd.gob.mx  and Sectoral Programme at:  
https://www.gob.mx/fnd/documentos/programa -sectorial -de-desarrollo -agropecuario -pesquero -y-alimentario -
2013-2018_dof . 
2 Strategy 4.10.1 of the PND 2013 -2018, Sectoral Development Programme for Agriculture, Fisheries 
and Food, and SAGARPA (2014), 2do Informe de Labores 2013 -2014. Viewed at: 
http://www.sagarpa.gob.mx/Transparencia/Informes/SEGUNDO_INFORME_DE_LABORES_2013_%202014_SA
GARPA.pdf . 
3 SAGARPA  (2013), 1er Informe de Labores 2012 -2013. Viewed at: 
http://www.sagarpa.gob.mx/Transparencia/Pot%202013/Informes%202013/INFORME_SAGARPA.pdf . 
4 Sectoral Development Programme for Agriculture, Fisheries and Food and S AGARPA (2014), 
2do Informe de Labores 2013 -2014. Viewed at: 
http://www.sagarpa.gob.mx/Transparencia/Informes/SEGUNDO_INFORME_DE_LABORES_2013 _%202014_SA
GARPA.pdf . 
5 PND 2013 -2018 and Sectoral Development Programme for Agriculture, Fisheries and Food 2013 -2018.  
Viewed at: 
http://www.sagarpa.gob.mx/asuntosinternacionales/cooperacioninternacional/Documents/Febrero%202014/Pr
ograma%20Sectorial%20de%20Desarrollo%20Agro%20Pesq%20%20y%20Alim%20%202013 -2018.pdf. 
6 Online information from the Government of the Republic . Viewed at:  https://www.gob.mx/cms/  
uploads/attachment/file/10233/Explica cion_ampliada_de_la_Reforma_Energetica1.pdf . WT/TPR/S/35 2 • Mexico  
 
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  4.1.2   Measures affecting imports and exports  
4.7.  Durin g the review period, Mexico substantially reduced its tariffs on agricultural products 
(WTO definition), from 20.9% in 2012 to 14.3% in 2016. On the other hand, the average tariff on 
agricultural products is still considerably higher than that applied to n on-agricultural products 
(4.6% in 2016, the same as in 2012). The agricultural products which benefited from the highest 
rate of protection of 254% in 2012, such as animal products and bacon, and animal and vegetable 
fats and oils, are currently subject to  tariffs of 20% or 45%. Imports of poultry meat and edible 
offal are subject to a tariff of 100% (234% in 2012), while other products, such as fresh cheese 
and white and black beans, which in 2012 were protected by 125% tariffs, are currently subject to 
a tariff of 45%. Despite this reduction , on average the highest duties by WTO category are still 
being applied to agricultural products, specifically sugar and sugar confectionery, and to animals 
and products of animal origin, with tariffs of 40.9% (63.3% in  2012) and 24.8% (48.2% in 2012), 
respectively (Table A3.1). The protection for fish and fish products fell from 16.8% in 2012 to 
15.5% in 2016.  
4.8.  A total of 56 tariff lines corresponding to agricultural products is subject to specific and 
compound tariffs. Of these, 14 lines are subject to specific tariffs: sugars, chemically pure sucrose 
and cocoa, and 42 lines are subject to compound tariffs: various kinds of milk, cream and ice 
cream; certain fruits (for example, strawberries, raspberries and other berrie s); molasses and 
articles of sugar confectionery, whether or not containing cocoa; extracts of malt; biscuits and 
other food preparations; waters, sweetened and flavoured; and ethyl alcohol.  
4.9.  Mexico bound all its tariff lines in the Uruguay Round, at levels  ranging from 0 to 254%. Both 
the bound and the applied tariff contain specific and compound duties . The compound bound tariffs 
are applied primarily to agricultural products such as meat and offal; milk and dairy products; 
potatoes and dried leguminous ve getables; cereals; animal or vegetable fats and oils; and sugars 
and articles of sugar confectionery. The compound tariffs have a specific component and an 
ad valorem  component that acts as a minimum tariff; the ad valorem  component ranges from 47% 
to 254% . 
4.10.   Some agricultural products such as sorghum (HS 1007.90.01 -1007.90.02), soya beans 
(HS 1201.90.01 -1201.90.02) and safflower seeds (HS 1207.60.02 -1207.60.03) are subject to 
seasonal tariffs. Thus, imports of these three products enter Mexico duty -free duri ng a certain 
period of the year, whereas outside that period imports of sorghum and soya beans are subject to 
a 15% tariff and imports of safflower seeds to a 10% tariff.  
4.11.   Mexico continues to use three kinds of tariff quotas: those negotiated under the WTO,  
unilateral quotas, and preferential quotas.  
4.12.   Within the WTO framework, Mexico applies tariff quotas to 72 HS eight -digit lines. These 
products are: sugar and products with a high sugar content, coffee, meat and edible offal, barley, 
animal fats, beans, pow dered milk, maize, potatoes, cheese and wheat. In 2015, the only quota 
used was that for powdered milk. Otherwise, the WTO quotas were not used, since the products 
affected could be imported under better conditions of access within the framework of bilater al 
agreements or unilateral quotas (for example, among other products, barley, beans and coffee). In 
other cases, the ex -quota applied tariff is lower than the in -quota applied tariff (hard and 
semi-hard cheeses, some types of coffee, animal fats and some types of maize and sugar). The 
tariff quotas continue to be administered by the Ministry of the Economy (SE). In general, quotas 
are allocated by open tender, although there are other allocation procedures (such as direct 
allocation and "first come, first served").  
4.13.   In 2016, Mexico was applying unilateral quotas for certain agricultural products (including 
fishery products) contained in 20 HS eight -digit tariff lines. Some of these products, such as 
coffee, poultry meat, barley, beans, preparations based on dairy products and chicken and turkey 
cuts, are also being allocated to WTO tariff quotas (Table A3.2). However, the tariff under the 
unilateral quota is less than that under the WTO quota. In 2015, volumes imported under 
unilateral quotas were generally w ell below the quota amount (Table A3.3).  
4.14.   Mexico has negotiated preferential quotas for agricultural products (including fishery 
products) under its trade agreements with: Argentina - ECA 6 (6 tariff lines at 2012 HS 8 -digit WT/TPR/S/35 2 • Mexico  
 
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  level); Colombia (28 lines); Cos ta Rica (18 lines); Cuba – ECA 51 (14 lines); El Salvador 
(11 lines); Guatemala (15 lines); Honduras (12 lines); Israel (21 lines); Japan (40 lines); 
Nicaragua (11 lines); Peru (32 lines); Uruguay (13  lines) and the European Union (4 lines).  
4.15.   During the per iod 2012 –2015, Mexico made no use of the special safeguard provided for in 
the Agreement on Agriculture.7 
4.16.   Mexico administers a system of automatic import licences (automatic permits or notices) 
and non -automatic licences (prior permits) for the purpose of protecting plant and animal health. 
To import products and by -products of plant or animal origin it is also necessary to possess a 
health certificate and, in some cases, a non -automatic import licence. Exports of agricultural 
products are also subject to p hytosanitary and zoosanitary requirements.  
4.17.   In 2014, Mexico notified the WTO that in the period 2008 -2009 export subsidies had been 
granted for wheat and maize, while in 2010 -2012 only wheat exports had been subsidized. In 
2016, Mexico notified the WTO that  no export subsidies had been provided in 2013 –2015.8 
4.1.3   Support measures  
4.18.   Mexico continues to provide support for the agriculture, livestock and fishery sector under a 
series of programmes administered by SAGARPA (Table  4.2). These programmes are drawn up 
each year and their rules of operation are included in a Decision published in the Official Journal of 
the Federation.9 The objective of the programmes does not appear to have changed since 2012; 
however, it is difficult to draw a comparison between the progr ammes implemented in 2012 and 
those currently in force, since the names of some have changed and others have been regrouped. 
Currently, SAGARPA is implementing nine programmes incorporating 44 sub programmes.10 
4.19.   SAGARPA also offers incentives for promoting pr oductivity in the agrifood, livestock and 
fishery sectors. By means of these programmes, SAGARPA provides direct transfers to the 
producers. These resources must be used, among other things, for the following purposes: 
investing in human capital, capital g oods and technology; improving risk management; and 
promoting Mexican products in new foreign markets. In 2016, under the Agrifood Productivity and 
Competitiveness Programme, SAGARPA offered farmers, guarantees for up to 100% of the amount 
of loans obtaine d from commercial banks.  
4.20.   The majority of the incentive programmes offered by SAGARPA are nationwide in scope and 
can be used for any kind of agricultural activity. However, there are some specific programmes, 
such as the Small Producers Support Programme, whose sole beneficiaries are small coffee, bean 
and maize producers.11 The sub programmes of the Rural Productivity Programme support people 
living in poverty in rural and peri -urban areas and small rural producers working in highly and very 
highly marginali zed localities (Table 4.2).  
Table 4.2 SAGARPA incentive programmes, 2012 -2016  
(Mex$  million)  
 Programmes  Disbursements  
2012  Action together with federative entities in the area of investme nt, sustainability and capacity building  4,876  
Support for investment in equipment and infrastructure  .. 
Support for agricultural incomes (PROCAMPO for a Better Life)  .. 
Capacity building, technological innovation and rural extension  .. 
Risk prevention and manageme nt .. 
Sustainability of natural resources  .. 
2013  Action together with federative entities in the area of investment, sustainability and capacity building  3,746  
Support for investment in equipment and infrastructure  .. 
Capacity building, technolog ical innovation and rural extension  .. 
                                                
7 WTO documents G/AG/N/MEX/29 of 29  August  2016 and G/AG/N/MEX/26 of 21  July 2014.  
8 WTO documents G/AG/N/MEX/27 of 21  July 2014 and G/AG/N/MEX/32 of 1  September  2016.  
9 Decision announcing the rules of operati on of the programmes of the Ministry of Agriculture, Livestock, 
Rural Development, Fisheries and Food for fiscal year 2016 (published in the Official Journal of 
30 December  2015).  
10 SAGARPA (2016), 3er Informe de Labores 2014 -2015. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/32511/informe_labores_SE_2014 -2015.pdf . 
11 Online information from SAGARPA . Viewed at:  http://www.sagarpa.gob.mx/ProgramasSAGARPA/  
2016/pequenos_productores/Incentivos_productivos/Paginas/Conceptos_de_Apoyo.aspx . WT/TPR/S/35 2 • Mexico  
 
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   Programmes  Disbursements  
Risk prevention and management  .. 
Productive PROCAMPO  .. 
Sustainability of natural resources  .. 
2014  Marketing and market development programme  .. 
Action together with federative entities programme  4,186  
Agriculture promotion programme  22,838  
Programme for the promotion of fishing and aquaculture productivity  .. 
Livestock promotion programme  4,961  
Innovation, research, technological development and education programme  3,284  
Agrifood productivity a nd competitiveness programme  6,837  
Agrifood health and safety programme  .. 
Integrated rural development programme  .. 
2015  Productivity of women in business programme  .. 
Marketing and market development programme  .. 
Action together with federativ e entities programme  4,158  
Agriculture promotion programme  20,702  
Programme for the promotion of fishing and aquaculture productivity   
Livestock promotion programme  3,951  
Innovation, research, technological development and education programme  3,711 
Agrifood productivity and competitiveness programme  5,167  
Agrifood health and safety programme  .. 
Fund in support of production projects in agricultural clusters programme  .. 
Integrated rural development programme  .. 
2016a Small producers suppor t programme  
To support small coffee, maize and bean producers with economic incentives, extension services, 
innovation and training in order to increase their productivity  3,004  
Marketing and market development programme  
To help producers and/or buyers o f agricultural products to manage market risks  
To provide incentives for agricultural producers that have difficulties in marketing their production  .. 
Action together with federative entities programme  
To promote the development of primary agricultural activities by means of strategic projects with 
regional, state or local impact  2,145  
Agriculture promotion programme  
To provide farmers with an economic incentive to increase mechanization and the level of technology 
used, and improve the use of water, e quipment and infrastructure  
To encourage producers to become organic producers and certify their processes  13,769  
Programme for the promotion of fishing and aquaculture productivity  
To provide support for the fishing and aquaculture sector in order to in crease its capitalization, 
improve the management and surveillance of fishing resources and improve the genetic quality of the 
species  
To promote the development of aquaculture  .. 
Livestock promotion programme  
To provide support for the livestock sector in order to improve the processes for adding value to 
livestock products  
To provide support in order to increase the availability of water for animal consumption  
To provide support in order to improve pasture and rough grazing land  
To provide support in or der to increase the level of technology in the sector and hence its productivity  
To provide support in order to increase the number and genetic quality of livestock species  3,097  
Rural productivity programme  
To support the commercial development of famil y farming  
To support agricultural producers in arid and semi -arid areas in order to help them increase their 
productivity through the Productive Infrastructure for Sustainable Soil and Water Management, Arid 
Zone Development (PRODEZA) programme  
To support family production units in highly and very highly marginalized rural localities in order to 
improve their production capacity through the Strategic Food Security Project (PESA)  
To support agricultural producers in improving their capacity for confronting n atural disasters  6,306  
Agrifood productivity and competitiveness programme  
To support agricultural producers, fishermen, fish farmers and the rural sector in order to facilitate 
access to financing  
To support agricultural producers, fishermen, fish farme rs and other rural sector economic operators 
forming part of the production chain in order to promote the use of market risk management tools  2,888  
Agrifood health and safety programme  
To improve health and safety in the agrifood, aquaculture and fishery  sector  .. 
.. Not available.  
a The data for 2016 correspond to the January -September period.  
Note:  These programmes are divided into subprogrammes. Information on the implementatio n of each 
programme and its sub programmes is available online at: http://www.sagarpa.gob.mx/  
ProgramasSAGARPA/2016/Paginas/default.aspx . 
Source:  WTO Secretariat, on the basis of the annual operating rules published in the Official Journal and 
online information viewed at: http://www.sagarpa.gob.mx/transparencia_rendicion/Paginas/  
Indicadores_Prog_Presupuestarios.aspx  and at: http://www.sagarpa.gob.mx/ProgramasSAGARPA/  
2016/Paginas/default.aspx . WT/TPR/S/35 2 • Mexico  
 
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  4.1.3.1   PROAGRO  
4.21.   Among SAGARPA's domestic support programmes for agriculture, the most important in 
terms of disbursement s is the Agriculture Promotion Programme, whose main component is 
Productive PROAGRO, which, in 2014, replaced the Direct Support to Farmers Programme 
(PROCAMPO), introduced in 1994. The rights of the producers who were already benefiting from 
PROCAMPO wer e not affected by the entry into force of the new programme. Under Productive 
PROAGRO, as with PROCAMPO, direct payments per hectare are granted to producers of any crop  
whose holdings are entered in the Productive P ROAGRO Directory.12 The principal change 
introduced by PROAGRO is that the producer must show that the support has actually been used in 
the production process.  
4.22.   The incentive granted under PROAGRO depends on the area planted and all those producers 
that own or lease or have beneficial interests i n holdings registered under the Programme are 
eligible. PROAGRO benefits both commercial producers and those that produce for their own 
consumption, since payment depends on the area planted. The incentive is granted even if the 
harvest is lost, as a resul t of adverse weather conditions or other disasters outside the producer's 
control.  
4.23.   Producers eligible for the incentive are divided into three groups (self -consumption, 
transitional and commercial) and the size of the unit is determined in accordance with its water 
regime. The incentive is paid per hectare under an allocation system (Table 4.3). The general 
criteria for granting the incentive vary annually and by agricultural cycle (Autumn -Winter  
2015/2016 and Spring -Summer 2016) . 
Table 4.3 PROAGRO, general criteria, 2016  
Group  Water regime  Allocation per 
hectare  Rain fed  Irrigated  
Self-consumption  Up to 5 ha  Up to 0.2 ha  Mex$1,500a 
Mex$1,300b 
Transitional  Above 5 ha and up to 20 ha  Above 0.2 ha and up to 5 ha  Mex$800  
Commercial  Above 20 ha  Above 5 ha  Mex$700  
a Producers with production units of up to 3 hectares of rain -fed land located in National Crusade 
against Hunger municipalities.  
b Rest of the country corresponds to production units of up to 3  hectares of rain -fed land located in 
municipalities not included in the National Crusade against Hunger, together with the rest of the 
production units.  
Source:  Decision announcing the rules of operation of the programmes of the Ministry of Agriculture, 
Livestock, Rural Development, Fisheries and Food for fiscal year 2016 (published in the 
Official  Journal of 30  September  2015).  
4.24.   To be eligible for PROAGRO, certain limits on the size of the holding must not be exceeded, 
namely, a maximum of 100 hectares of irrigated land or 200 hectares of rain -fed land per natural 
person. However, the maximum amount of the incentive per beneficiary, per agricultural cycle, is 
limited to an amount equivalent to 80 hectares, irrespective of the total area of the production 
unit. Commercial companies and civil corporations are entitled to own up to a maximum of 
25 times the individual area, that is, 2,500 hectares of irrigated land or 5,000 hectares of rain -fed 
land. If an owner registered with PROAGRO exceeds the maximum limit  on the area owned, the 
holdings will be identified and the incentive will not be granted until the owner complies with the 
limit on the maximum area in ownership. In 2014, when PROAGRO came into operation, a total of 
Mex$13,160  million was disbursed for t he benefit of some two  million producers farming around 
12.3 million hectares. In 2015, the expenditure on PROAGRO reached the sum of 
Mex$13,006  million.  
4.1.3.2   PROGAN  
4.25.   The new PROGAN, which since 2014 has been known as Productive PROGAN, is a 
programme similar to  its predecessor, which offers the livestock farmer a unit payment for cattle 
                                                
12 Online information fro m the Support Services  for Agricultural Marketing Agency  (ASERCA) . Viewed at: 
http://www.gob.mx/aserca . WT/TPR/S/35 2 • Mexico  
 
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  (sheep, bovine animals and goats), bees, rabbits and pigs. The maximum amount of the incentive 
to be granted is established annually in accordance with the size of the herd or th e apiary and the 
level (Table 4.4 ). There is also a maximum amount of support per beneficiary, which will be 
Mex$500,000 per natural person and Mex$5  million per legal person.13 
Table 4.4 PROGAN – Maximum amoun ts of assistance, 2016  
Level A: For natural or legal persons, as follows:  
Species  Authorized bellies or hives in 
stock per application  Support per authorized belly or 
hive 
Bovine animals, meat  1-35 Mex$300  
Bovine animals, small family dairy  5-35 Mex$30 0 
Sheep  25-175 Mex$76  
Goats  30-210 Mex$63  
Bees 10-175 Mex$76  
Rabbits  3-200 Mex$30  
Pigs 15-105 Mex$117  
Level B: For natural or legal persons, as follows:  
Species  Authorized bellies or hives in 
stock per application  Support per authorized belly or 
hive 
Bovine animals, meat and 
dual-purpose  36-100 Mex$250  
Sheep  176-500 Mex$60  
Goats  211-600 Mex$50  
Bees 176-500 Mex$60  
Rabbits  201-600 Mex$20  
Pigs 106-300 Mex$93  
Source:  Decision announcing the rules of operation of the programmes of the Ministry of A griculture, 
Livestock, Rural Development, Fisheries and Food for fiscal year 2016 (published in the 
Official  Journal of 30  September  2015).  
4.1.3.3   Marketing incentives  
4.26.   Mexico has various incentive programmes for agricultural product marketing, designed to 
help pr oducers and/or buyers to manage market risks. The implementation of these programmes 
is the responsibility of the Support Services  for Agricultural Marketing Agency  (ASERCA).14 The 
incentives are available for "eligible" agricultural products that are in su rplus and/or having 
marketing problems. Potential beneficiaries of the programme include both the producers and/or 
marketers of these products and persons participating in the programmes in support of market risk 
management implemented by SAGARPA, the Nati onal Agricultural, Rural, Forestry and Fisheries 
Development Bank (FND), and the Trust Fund for Agriculture (FIRA) and parties insured under the 
farm income insurance by AGROASEMEX. In 2016, there were several incentives for marketing, 
such as the Incentiv es for Marketing in Contract Farming (AxC), Supplementary Incentives for 
Target Income, Emerging Incentives for Marketing, and Incentives for the Quality Certification 
Process.  
4.27.   The Incentives for Marketing in Contract Farming (AxC) seek to encourage and pr omote the 
signing of contracts of sale between producers and buyers of maize, sorghum, wheat and soya, 
under specific conditions which affect, among other things, the price, volume, quality, time, place 
of delivery and conditions of payment, in order to en sure that the product is marketed under 
competitive conditions for the parties. This type of contract offers producers certainty with regard 
to their income and buyers stability with regard to cost and supply. The support granted under the 
programme makes it possible to compensate for fluctuations that arise between the price agreed 
in the contract of sale and the market price. The compensation is calculated on the basis of a 
formula and, depending on the result, may be in favour of the producer or the buye r.15 
4.28.   The Supplementary Incentives for Target Income, called in 2012 Supplementary Support for 
Target Income and Marketing, guarantee a minimum income per tonne marketed for producers 
who, before planting or harvesting, sign contracts of sale with a buyer th at include the volume and 
                                                
13 Online information from SAGARPA . Viewed at:  
http://www.gob.mx/cms/uploads/attachment/file/44530/Reglas -Operacion -2016-sagarpa.pdf . 
14 Online information from ASERCA . Viewed at: http://www.gob.mx/aserca . 
15 The terms of "contr act farming" are established by crop, agricultural cycle and federative entity or 
region, in accordance with Notices published in the Official Journal and online. Viewed at:  
http://www.gob.mx/aserca . WT/TPR/S/35 2 • Mexico  
 
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  identification of the beneficiaries of the AxC. This incentive helps to provide certainty in marketing 
and to promote the integration of the different links in the agrifood chains and is used when the 
amount of income received by the producer on selling the harvest of certain products, generally 
staple grains (for example: wheat, maize, beans, soya, sorghum), falls below an income level 
predetermined for each crop, called the "target income" (pesos/tonne). In 2016, "target incomes"  
were defined for: raw cotton, rice, canola, safflower, sunflower, maize, durum wheat, bread wheat, 
sorghum and soya.16 
4.29.   In addition, there is a specific incentive for marketing beans in order to ensure the supply. 
The Bean Marketing Incentives mechanism pro vides for the granting of up to 100% of the 
operating costs associated with gathering, processing (cleaning), shipping, financing and 
marketing the product, as estimated by the unit responsible.  
4.1.3.4   Other incentives  
4.30.   The prices of electricity and diesel used by  low-income agricultural producers are subsidized 
to promote productivity and the development of agricultural activities.  
4.31.   The Rural Energy Law stipulates that a programme must be established annually by means 
of tariffs designed to stimulate the use of agr icultural energy sources.17 These stimulus tariffs are 
applied to an "energy quota" determined by SAGARPA when electricity is put to specific uses, such 
as operating water pumping and booster equipment for agricultural irrigation. In 2015 -2016, 
farmers on S AGARPA's list of beneficiaries of agricultural energy sources could also benefit from 
stimulus tariffs for the electricity consumed in aquaculture installations.18 The energy consumption 
quota per beneficiary at promotional prices and tariffs is delivered i n accordance with the 
procedures laid down by SAGARPA. Applications are made per production cycle. The energy quota 
is openly allocated, with the list of beneficiaries being published on the Internet at the beginning of 
each production cycle.  
4.32.   Likewise, up until 2013, the Rural Energy Law also provided for an "Agricultural Diesel" 
programme, which established  a preferential price for a quota of this type of diesel. In 2016, 
SAGARPA reactivated the programme in a new format. Beneficiaries under the new progra mme 
must register with SAGARPA by enrolling in a new "List of Agricultural Diesel Beneficiaries". 
Beneficiaries can obtain an agricultural diesel quota only up to the total allocated in 2013. 
Producers receive support in the form of up to 5,000 litres per item of equipment and up to 
20,000  litres per beneficiary per year. Users must also register the equipment that they are going 
to use, which may not be more than 20 years old for tractors and machinery or 10 years old for 
pumping equipment.19 
4.33.   Mexico also su pports the crop and livestock farming, rural, forestry and fishery sectors by 
facilitating access to credit and offering guarantees for projects related with crop and livestock 
farming, poultry farming, agro -industry, fishing and other related or similar a ctivities carried out in 
a rural environment. This support is mainly channelled through the National Agricultural, Rural, 
Forestry and Fisheries Development Bank (formerly Financiera Rural) and the Trust Fund for 
Agriculture (FIRA).  
4.34.   FIRA has several credit  programmes under which, as a second -tier bank, it grants loans 
through registered financial intermediaries authorized to manage FIRA resources. The credit 
programmes can be used to cover working capital requirements, as well as to purchase inputs, raw 
materials and supplies and to pay day wages, salaries and other direct production costs. FIRA rural 
microcredit is intended to increase the penetration and coverage of rural financial markets, 
through microcredit operations.20 In addition, FIRA operates progra mmes in coordination with 
                                                
16 Online inform ation from ASERCA . Viewed at: http://www.gob.mx/aserca . 
17 Rural Energy Law (published in the Official Journal of 30  December  2002; latest amendment 
published in the Official Journal of 28  December  2012).  
18 Tariffs f or the supply and sale of electricity (2015 -2016). Online information from the Federal 
Electricity Commission (CFE) . Viewed at:  
http://app.cfe.gob.mx/Aplicaciones/C CFE/Tarifas/Tarifas/tarifas_industria.asp . 
19 Online information from SAGARPA . Viewed at:  
http://www.sagarpa.gob.mx/Delegaciones/colima/boletines/Paginas/2016B058.a spx. 
20 Online information from FIRA . Viewed at:  http://www.gob.mx/fira/acciones -y-programas/credito -fira-
a-traves -de-intermediarios -financieros?idiom=es . WT/TPR/S/35 2 • Mexico  
 
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  other entities, such as SAGARPA, with a view to supplementing, among other things, the 
guarantees for small producers in the crop and livestock farming, rural, forestry and fishery 
sectors.21 
4.35.   FIRA credit can be used to finance any lawful economic activity carried out in the crop and 
livestock farming, rural, forestry and fishery sectors, provided that the economic activity takes 
place in localities with a population of up to 50,000 inhabitants. All enterprises that operate in 
these sectors are eligible. The maximum amount of credit varies with the size of the enterprise: 
micro -enterprises can obtain a maximum of 10,000 investment units (UDI) and large enterprises 
more than 4  million UDI. FIRA resources, which the financial intermedia ries receive in national 
currency or in dollars, generate interest in accordance with the interest rate scheme in force on 
the date on which the resources are made available. There are two interest rate schemes: variable 
(market) interest rates and interes t rate hedging (fixed rate). FIRA financing has increased since 
2011 (Mex$111  billion) to reach Mex$132  billion in 2016.  
4.36.   One of the main functions of the National Agricultural, Rural, Forestry and Fisheries 
Development Bank (Financiera Nacional, formerly F inanciera Rural) is to promote financial 
expansion in the rural sector. To achieve this objective, it grants loans to producers and rural 
financial intermediaries in order that they, in their turn, may provide financing to promote crop 
and livestock farmin g, forestry and fishing and all activities linked with the rural and indigenous 
environment. In addition, Financiera Nacional offers guarantees and security. It also promotes 
training for producers and advises them on the better use of credit resources; an d it supports 
producers that decide to set up as rural financial intermediaries.  
4.37.   Financiera Nacional also offers credit directly for financing any activity linked with the rural 
environment.22 This type of credit is available to any natural or legal person from a "certain 
segment of the population requiring more attention" that is in need of financing to develop their 
activity. The credit granted is subject to a minimum of 7,000 UDI and a maximum of 600,000 UDI, 
at "affordable" interest rates, and is intende d to support rural producers and enterprises.23 In 
2011, Financiera Nacional disbursed Mex$23,957  million and contributed 14% of rural sector 
financing. In 2015, it granted credit amounting to Mex$55,093  million.  
4.38.   AGROASEMEX is a State agency responsible for  providing insurance for the rural sector. 
Through its programmes, AGROASEMEX promotes the use of insurance and comprehensive risk 
management by Mexico's agricultural sector. Its programmes include: the Agricultural Insurance 
Premium Subsidy Programme, the  Weather Risk Subsidy and Agricultural Disaster Insurance.24 
4.2  Energy  
4.2.1   Main features  
4.39.   In 2015, the energy sector contributed 7.9% of Mexico's GDP and 7.5% of the value of its 
total merchandise exports.25 Petroleum and gas extraction accounted for 5.3% of GDP, wh ile the 
generation, distribution and transmission of electricity accounted for 2.1% and the manufacturing 
of petroleum and coal products for 0.5%.  
4.40.   Since 2015, the energy sector has been experiencing the negative effects of lower oil prices, 
which have led to a fall in production. Between 2012 and 2015, primary energy production 
contracted at an annual rate of 3% (Table 4.5). In 2015, it amounted to 8,261  petajoules, with 
hydrocarbons accounting for 87.2%, renewables for 7.9%, coal for 3.5%, and nuclear ener gy for 
the remaining 1.5%.  
                                                
21 Online information from FIRA . Viewed at:  http://www.gob.mx/fira/acciones -y-programas/programas -
de-sagarpa -y-otras-entidades -operados -por-fira?idiom=es . 
22 Organic Law of the National Agricultural, Rural, Forestry and Fisheries Development Bank (Financiera 
Nacional), published in the Official Journal of 26  December  2002; latest amendment published in the Official 
Journal of 10  January  2014.  
23 Online information from Financiera Nacional . Viewed at:  http://www.gob.mx/fnd/acciones -y-
programas/financiamiento -pre-autorizado?idi om=es . 
24 Online information from AGROASEMEX . Viewed at:  http://www.gob.mx/agroasemex#acciones . 
25 The data for the energy sector include the extraction of petroleum and gas, the generation and supply 
of electrici ty, and the manufacture of petroleum and coal products.  WT/TPR/S/35 2 • Mexico  
 
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  Table 4.5 National Energy Balance: Economic and Energy Indicators, 2012 -2015  
Description  2012  2013  2014  2015  
National energy consumption (petajoules)  8,814.8  8,988.4  8,650.7  8,528.9  
GDP (billion 2008 pesos)  13,287.5  13,471.8  13,760.2  14,110.1  
National population (million inhabitants)  117.1  118.4  119.7  121.0  
Energy intensity (KJ/$ produced)  663.4  667.2  628.7  604.5  
Per capita energy consumption (GJ/inhab.)  75.3 75.9 72.3 70.5 
Electricity consumption (GWh)  233,306.5  235,140.8  241,196.7  248,738.7  
Electricity consumption/capita (kWh/inhab.)  1,993.2  1,986.1  2,014.8  2,055.6  
Energy production (petajoules)  9,059.4  9,052.9  8,854.3  8,261.0  
 Coal 310.8  299.9  303.7  287.7  
 Hydrocarbons  8,035.7 7,994.3  7,783.0  7,203.9  
  Crude petroleum  5,918.9  5,814.6  5,597.2  5,067.7  
  Condensates  87.7 134.1  106.3  98.8 
  Natural gas  2,029.1  2,045.6  2,079.5  2,037.3  
 Nuclear energy  91.3 122.6  100.6  120.4  
 Renewables  621.6  636.1  667.0  649.1  
 Hydropower  114.9 100.9  140.0  111.2  
  Geo-energy  133.1  131.3  129.9  134.5  
  Solar energy  6.6 7.6 8.7 10.2 
 Wind energy  13.3 15.1 23.1 31.5 
 Biogas  1.8 2.0 1.9 1.9 
 Biomass  351.8  379.3  363.3  359.8  
  Cane bagasse  95.1 123.9  109.2  107.0  
  Wood  256.7  255.4  254.1  252.8  
Source:  Energy Information System, Ministry of Energy. Viewed at: 
http://sie.energia.gob.mx/bdiController.do?action=cuadro&cvecua=IE0C01 ; and information 
provided by th e authorities.  
4.41.   Total investment in the hydrocarbons energy sector grew by 14.4% between 2012 and 
2014, but declined in 2015 to a value of Mex$306,300  million (some US$18  billion), as a result of 
lower oil prices.  
4.42.   In 2013, Mexico implemented a reform of the  energy sector which affected various 
institutional and legal aspects and sought to increase the efficiency of the sector's State -owned 
production enterprises.  
4.2.2   General legal and institutional framework  
4.43.   The formulation and management of energy policy is the  responsibility of the Ministry of 
Energy (SENER), which is also tasked with regulating the activities of the sector's State -owned 
production enterprises (EPE), granting energy -related authorizations and permits and allocations 
for hydrocarbon exploration and exploitation, and issuing the necessary regulations . The Minister 
for Energy chairs the boards of the EPEs (PEMEX in the hydrocarbons sector, and the Federal 
Electricity Commission (CFE)).  
4.44.   Apart from SENER, various government agencies interact in the e nergy sector: (a) the 
National Hydrocarbons Commission (CNH); (b)  the Regulatory Commission for Energy (CRE); 
(c) the Ministry of Finance and Public Credit (SHCP); (d)  the Ministry of the Economy (SE); (e) the 
National Natural Gas Control Centre (CENAGAS);  (h) the National Energy Control Centre 
(CENACE); and (i) the National Agency for Industrial Safety and Environmental Protection in the 
Hydrocarbons Sector, known as the Safety, Energy and Environment Agency (ASEA) (Table  4.6). 
Moreover, SENER has several decentralized bodies with technical and managerial autonomy: the 
National Commission for the Efficient Use of Energy; the National Nuclear Safety and Safeguards 
Commission; the Mexican Petroleum Institute, and the National Electricity and Clean Energy 
Institute.  WT/TPR/S/35 2 • Mexico  
 
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  Table 4.6 Principal functions of the energy sector institutions  
 Hydrocarbons and their products  Electricity  
SENER   Grants and revokes exploration and extraction 
allocations.   Drew up the National Elect rical System 
Development Programme (SEN).  
 Selects the contract areas for exploration and extraction 
contracts, with the assistance of the CNH. Approves and 
issues the five -year tender schedule.  
 Establishes the model contract for each contract area 
and d etermines the technical terms of the contracts. 
Chooses the type of contract.   Establishes the criteria for granting clean 
energy certificates and the requirements for 
obtaining them.  
 Gives its opinion on the operation of the 
wholesale electricity marke t (MEM).  
 Issues the permits for treating and refining petroleum 
and processing natural gas.   Determines whether it is necessary to form 
partnerships or sign contracts for financing, 
installing, maintaining, managing, operating, 
extending, modernizing, mo nitoring and 
preserving the transmission and distribution 
infrastructure.  
 Grants prior import/export permits for petroleum 
products.   Issues the bidding conditions and the public 
call for tenders for contracts.  
 Approves the five -year plan for the expans ion of the 
natural gas transport and storage network at the 
proposal of CENAGAS   Determines the minimum percentages of local 
content in the contracts.  
CNH  Proposes to SENER the five -year plan for the areas to 
be put out to tender and assists with the sele ction of the 
contract areas.   
 Carries out the tendering procedures. Awards and signs 
contracts on behalf of the State.  
 Authorizes the drilling of wells.  
 Approves the exploration or extraction development 
plans.  
 May carry out or contract for su rvey and surface 
exploration studies, and manages the information 
obtained through the National Hydrocarbons 
Information Centre.  
CRE  Issues permits for the storage, transport, distribution, 
marketing, export, import and retailing of hydrocarbons, 
petrole um products and petrochemicals. Issues permits 
for the compression / decompression / liquefaction / 
regasification of natural gas.   Issues electricity generation and marketing 
permits.  
 Keeps the register of qualified users.  
 Grants clean energy certif icates.  
 Approves the installation of integrated systems for the 
transport by pipeline and storage of natural gas, 
petroleum products and petrochemicals.   Authorizes electricity imports and exports.  
 Regulates transmission and distribution tariffs.  
 Determines the general conditions and prices for 
first-hand sales. a  Oversees the operation of the MEM and 
CENACE's determinations to ensure the 
efficient functioning of the MEM.   Establishes the tariffs for the transport, storage and 
distribution of hydrocar bons and petroleum products.  
SE  Establishes the methodology for measuring and 
verifying fulfilment of the local content percentage in 
allocations and contracts.   Establishes the methodology for measuring 
and verifying fulfilment of the local content 
perce ntage.  
 Establishes and regulates the retail prices for LPG.   Promotes the participation of domestic 
providers in the electricity sector.   Promotes the participation of domestic providers in the 
hydrocarbons sector.  
 Gives its opinion on applications f or prior import and 
export permits.  
SHCP   Determines the economic contract conditions relating to 
the fiscal terms of tenders and contracts. Gives its 
opinion on the type of contract. Determines the award 
variables in tendering procedures. Participates in  
contract administration and auditing.   Regulates basic supply tariffs.  
 Supervises contract operations and accounting records 
(including by carrying out audits and inspections).  
 Oversees the payment of the considerations which, in 
each contract, corres pond to the State and the 
contractor.  
 Establishes the retail prices for gasoline (petrol) and 
diesel.  
CENAGAS   Operates and administers the natural gas transport and 
storage system.   
 Proposes to SENER the five -year plan for the expansion 
of the natu ral gas transport and storage network.  
CENACE    Supervises the operation of the national 
electricity grid.  
 Formulates the plans for the expansion and 
modernization of the transmission and 
distribution networks.  
 Establishes the interconnection requir ements 
for new generating plants.  
 Operates the wholesale electricity market.  WT/TPR/S/35 2 • Mexico  
 
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   Hydrocarbons and their products  Electricity  
ASEA   Issues the rules and regulations on industrial safety and 
environmental protection.   
 Define protocols for mitigating risks.  
 Proposes measures for monitoring and sup ervising oil 
field dismantlement and restoration operations.  
 Establishes measures for managing the waste from 
hydrocarbon exploration and extraction activities.  
a First-hand sales are the first sales of hydrocarbons and petroleum products made by PEM EX (or 
another enterprise), for the account of the State, to a third party on the domestic market.  
Source:  WTO Secretariat and information provided by the authorities.  
4.45.   In establishing, managing and coordinating energy policy SENER follows a pluriannual 
sectoral programme in which the objectives for the period are set out. The latest Sectoral Energy 
Programme corresponds to the period 2013 -2018 (Box 4.1).26 The Minister for Energy chairs the 
Energy Sector Coordination Council, established in  2014 to acquaint the CNH and the CRE with 
energy policy and to analyse the recommendations and proposals made by the two commissions in 
this regard.27 SENER acquired new powers under the 2013 reform, for example, it is now 
empowered to grant PEMEX hydrocarbon exploration an d extraction allocations ; to issue permits 
for refining, for processing natural gas and for importing and exporting hydrocarbons and 
petroleum products; and to determine the minimum local content percentages in electricity 
transmission and distribution con tracts . 
Box 4.1 Objectives of energy policy  
The objectives of the Sectoral Energy Programme 2013 -2018 are:  
 to improve hydrocarbon production and processing capacity, by ensuring efficient and competitive process es; 
 to improve the operation and promote the extension of electricity infrastructure;  
 to develop transport infrastructure so as to ensure energy security, thereby contributing to economic growth;  
 to increase the number of users;  
 to extend the use of renewa ble and clean energy sources, while encouraging energy efficiency and social and 
environmental responsibility;  
 to strengthen the operational safety of the installations;  
 to promote the financing of energy projects; and  
 to encourage the participation of d omestic suppliers.  
Source:  Sectoral Energy Programme 2013 -2018. Viewed at: 
http://www.dof.gob.mx/nota_detalle.php%3Fcodigo%3D5326587%26fecha%3D13/12/2013 . 
4.46.   The C NH and the CRE are the energy sector's regulatory bodies, whose functions are 
described in detail in the Law on the coordinated regulatory bodies in the energy sector of 2014 
(Table  4.6).28 Up until 2014, SENER was responsible both for managing trade policy  and for 
regulating the activities of the sector through the CNH and the CRE, which were two of its 
decentralized (hierarchically subordinate) bodies. Under the reform process, the CNH and the CRE 
became bodies dependent on the central government, on a par  with the Ministries of State and the 
Legal Service;29 therefore, the sector now has two regulatory entities that act independently in the 
performance of their functions.30 Moreover, the CNH and the CRE assumed new regulatory 
responsibilities; it is a matter  of regulating not only the State -owned production enterprises but all 
the enterprises operating in the sector.  
                                                
26 Article 33 of the Organic Law of the Federal Government of 1976 (latest amendment published in the 
Official Journal of 18  July 2016). The Sectoral Energy Programme 2013 -2018 was published in the 
Official Journal of 13  December  2013.  
27 Article 21 of the Law on the coordinated regulatory bodies in the energy sector of 2014 (published in 
the Official Journal of 11  August  2014).  
28 The Law on the National Hydrocarbons Commission of 2008 and the Law on the  Regulatory 
Commission for Energy of 1995 were repealed.  
29 Article 2 of the Organic Law of the Federal Government.  
30 Online information from the Government of Mexico . Viewed at:  
https://www.gob.mx/cms/uploads/attachment/file/10233/Explicacion_ampliada_de_la_Reforma_Energetica1.p
df. WT/TPR/S/35 2 • Mexico  
 
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  4.47.   As a result of the energy reforms, two other ministries of State now intervene in the sector. 
The SCHP establishes the economic clauses of hydro carbon exploration and extraction contracts, 
while the SE gives opinions on the local content percentage and verifies its fulfilment. The SE also 
gives its opinion on applications for prior import and export permits. In addition, the two ministries 
of Stat e are responsible for determining retail prices and giving their opinion on import and export 
permits for hydrocarbons, petroleum products and petrochemicals (Table  4.6). 
4.48.   The reform also led to the creation of three new institutions, which have been operat ing 
since 2015: CENAGAS, CENACE and ASEA (Table  4.6). CENAGAS and CENACE are decentralized 
public agencies of SENER. CENAGAS independently manages and administers the natural gas 
pipeline transport and storage system in order to ensure an uninterrupted sup ply. CENACE controls 
the operation of the national electricity grid, operates the wholesale electricity market and 
guarantees non -discriminatory access to the t ransmission and distribution networks.31 ASEA is a 
decentralized agency of the Ministry of the En vironment and Natural Resources (SEMARNAT), 
which regulates and supervises the operational safety of the installations, industrial safety in the 
enterprises, the dismantlement and abandonment of installations, and the management of waste 
and pollutants.32 
4.49.   A constitutional amendment, introduced in 2013, changed the model for the management of 
energy resources and introduced a series of modifications of energy sector legislation. Pursuant to 
this amendment, the State retains control of "strategic" activities, namely: the supply of 
radioactive minerals for nuclear power generation; exploration for and extraction of hydrocarbons; 
the transmission and distribution of electricity; and planning and control of the national electricity 
grid. The new legal framework st ipulates that the private sector may participate in "strategic" 
activities through contracts with the State but not under concessions.33 
4.50.   The constitutional amendment led to a substantial change in the legal framework of the 
energy sector (Table  4.7). Severa l instruments entered into force between 2014 and 2015 and 
others were repealed or revised. In addition, amendments were made to the Foreign Investment 
Law which, in line with the constitutional changes, stipulates that private investment (domestic 
and for eign) is permitted – without ceilings – in all energy sector activities, except for "strategic" 
activities.34 Moreover, the clause excluding foreigners from the retail trade in petrol and the 
distribution of LPG was abolished.35 
Table 4.7 Changes in the legal framework of the energy sector introduced as a result of 
the constitutional reform of 2013  
 New laws (and their 
new regulations)  Laws repealed  Laws revised  
Regulatory 
bodies  Law on the coordinated regulato ry 
bodies in the energy sector  Law on the Regulatory 
Commission for Energy; Law on 
the National Hydrocarbons 
Commission  Organic Law of the Federal 
Government  
State -owned 
production 
enterprises  Mexican Petroleum Law (Regulations 
implementing the Mexican 
Petroleum Law)  Mexican Petroleum Law (2008)  Federal Law on Parastatal 
Bodies; Law on Public Sector 
Procurement, Leases and 
Services; Law on Public 
Works and Related Services; 
General Law on Public Debt; 
Federal Budget and Treasury 
Accountability Law  Law o n the Federal Electricity 
Commission (Regulations 
implementing the Law on the 
Federal Electricity Commission)   
                                                
31 Decree creating the National Energy Control Centre and Decree creating the National Natural Gas 
Control Cent re (both published in the Official Journal of 28  August  2014); Articles 66 -69 of the Hydrocarbons 
Law (published in the Official Journal of 11  August  2014); Article 107 and transitional Article 2 of the Law on 
the Electricity Industry (published in the Off icial Journal of 11  August  2014); and online information from 
CENAGAS . Viewed at:  http://www.cenagas.gob.mx . 
32 Article 1 of the Law on the National Agency for Industrial Safety and Environmental Protection in the 
Hydrocarbons Sector.  
33 Amended Articles 25, 27 and 28 of the Constitution published in the Official Journal of 
20 December  2013 and transitional Article  11 of the Decree amending and supplementing various provisions of 
the Constitution in relation to energy . 
34 Private investment in the secondary petrochemicals industry had already been permitted in 2014.  
35 Articles 5 and 6 of the Foreign Investment Law (amendment published in the Official Journal of 
11 August  2014).  WT/TPR/S/35 2 • Mexico  
 
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   New laws (and their 
new regulations)  Laws repealed  Laws revised  
Hydrocarbons  Hydrocarbons Law (Regulations 
implementing the Hydrocarbons Law 
and Regulations on the activities 
referred to in Title 3 of the 
Hydrocarbons Law)  Law regulating Article 27 of the 
Constitution in the petroleum 
sector  Foreign Investment Law; 
Mining Law; Law on 
Public -Private Partnerships  
Hydrocarbons Revenue Law 
(Regulations implementing the 
Hydrocarbons Revenue Law)  Regulations i mplementing the 
Mining Law concerning gas 
associated with coal deposits  Fiscal Coordination Law; 
Federal Law on Duty  
Law on the Mexican Petroleum Fund 
for Stabilization and Development    
Electricity  Law on the Electricity Industry 
(Regulations implemen ting the Law 
on the Electricity Industry)  Law on the Public Electric Power 
Service  Foreign Investment Law  
Law on Geothermal Energy 
(Regulations implementing the Law 
on Geothermal Energy)   National Waters Law  
Law on Energy Transition (not yet 
regulated ) Law for the development of 
renewable energies and the 
financing of the energy transition; 
Law for the sustainable supply of 
energy   
Safety and the 
environment  Law on the National Agency for 
Industrial Safety and Environmental 
Protection in the Hydrocarb ons 
Sector    
Note:  The Laws mentioned in the above Table were published in the Official Journal of 11  August  2014, 
except for the Law on Energy Transition, which was published in the Official Journal of 
24 December  2015. The Regulations were published in the Official Journal of 31  October  2014.  
Source:  WTO Secretariat, on the basis of the Portal of the Office of the President of the Republic, viewed at: 
http://presidencia.gob.mx/reformaenergetica/ ; SENER (2015), Prospectiva de Petróleo Crudo y 
Petrolíferos 2015 -2029, viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/44327/Prospec tiva_Petroleo_Crudo_y_Petrolifero
s.pdf; and information provided by the authorities.  
4.51.   The objectives of the reform of the energy sector carried out by Mexico during the review 
period include: (a) maintaining the ownership of the hydrocarbon reserves and th e planning and 
control of the national electricity system in the hands of the State; (b) permitting the participation 
of private enterprises; (c)  transforming the State -owned enterprises PEMEX and CFE so as to 
enable them to compete with the private sector ; (d) obtaining a more abundant supply of energy 
at better prices; and (e) strengthening the administration of petroleum revenue and promoting 
long-term savings.36 
4.52.   The State participates in the energy market through two different enterprises, PEMEX and 
the CFE. As part of the reforms, the Mexican Petroleum Law and the Law on the Federal Electricity 
Commission, which entered into force in 2014, modified the model used for the organization and 
operation of the two enterprises.37 As a result of the reforms, PEME X and the CFE ceased being 
parastatal enterprises and became EPEs. This change is intended to provide greater flexibility and 
efficiency so that each enterprise can compete with private -sector companies in its respective 
market. Both enterprises continue t o be 100% State -owned. The main differences between the 
legal status of a parastatal entity and the current status of an EPE are the following:   
a. business model : EPEs adopt a business model designed to generate greater economic 
value and greater profits for  the State, while the function of parastatal enterprises is to 
help the Federal Government with the management of areas considered strategic and 
prioritized by the State;  
b. corporate structure : as a result of the reforms, PEMEX and the CFE have a board of 
directors and a chief executive officer. The State has therefore abandoned the role of 
                                                
36 Online information from the Government o f Mexico . Viewed at:  
https://www.gob.mx/cms/uploads/attachment/file/10233/Explicacion_ampliada_de_la_Reforma_Energetica1.p
df; and Reform Portal of the Government of the Republic . Viewed at:  http://reformas.gob.mx/reforma -
energetica/que -es. 
37 Mexican Petroleum Law (published in the Official Journal of 11  August  2014) and Law on the Federal 
Electricity Commission (published in the Official Journal of 11  August  2014). The Mexican Petroleum Law of 
2014 repeals that of 2008.  WT/TPR/S/35 2 • Mexico  
 
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  general manager and assumed that of owner. Nonetheless, the members of the board of 
directors and the chief executive officer are appointed by the Executive Branch. The 
board of directors is composed of government directors, independent directors and, in 
the case of the CFE, a director designated by the employees of the enterprise38; and  
c. functioning and operating regime : PEMEX and the CFE now benefit from a flexible and 
autonomous functioning and operating regime which enables them to compete with the 
private sector and includes: (i) the creation of subsidiary production enterprises (EPS)39; 
(ii) participation in affiliated enterprises40; (iii)  remuneration of the personnel; (i v) the 
purchase of goods, services and works (Box  4.2); (v) the use and enjoyment of land and 
buildings; (vi) liability for damage and injury caused; (vii) the payment of an annual 
dividend to the State; (viii) budgeting; and (ix) the determination of debt  levels.41 
Where taxation is concerned, PEMEX and the CFE are subject to income tax (ISR).42 
Box 4.2 Procurement procedures for State -owned production enterprises  
PEMEX and the CFE remain totally excluded from the  application of the Law on Public Sector Procurement, 
Leases and Services and the Law on Public Works and Related Services. Each of the two enterprises has its 
own legal framework for procurement.  
PEMEX's legal framework for the procurement of goods, serv ices and works is established by the Mexican 
Petroleum Law of 2014, while procurement by the CFE is governed by the Law on the Federal Electricity 
Commission of 2014. In both cases, government procurement is also governed by Article 134 of the 
Constitution , which states that a public invitation to tender must be the preferred method of procurement, and 
by the general provisions on procurement approved by the respective boards of directors.  
In each case, the board of directors is responsible for: (a) approv ing the annual procurement programme 
proposed by the chief executive officer on the recommendation of the enterprise's purchasing committee; 
(b) selecting the method of procurement (public invitation to tender, closed bidding or direct award); 
and (c) determining the method of awarding the contract (an ascending or desce nding -price or sealed -bid 
first-price auction).  
PEMEX and the CFE must circulate information on their suppliers, the progress of the contracts signed and the 
award of contracts. Contracts are signed after a period of five working days, during which it is possible to make 
applications for reconsideration to a collegiate body composed of several of the enterprise's executives. 
Disputes over contracts are governed by commercial law.  
Irregular  purchases may be subject to sanctions under the Federal Law against corruption in government 
procurement.  
Source:  WTO Secretariat, on the basis of the Mexican Petroleum Law of 2014, the Law on the Federal 
Electricity Commission of 2014, the general provi sions on procurement, and the Note by the law firm 
Martens of June  2015. Viewed at:  http://www.martens.com.mx/es/index.php . 
4.2.3   Hydrocarbons  
4.2.3.1   Regulatory framework  
4.53.   The Hydrocarbons Law (LH) of 2014 and its i mplementing Regulations govern the sector's 
activities.43 The 2014 Law repealed the Law implementing Article 27 of the Constitution in the 
petroleum sector of 1958. The main institutions operating in the hydrocarbons sector are SENER, 
the CNH and the CRE. T he SCHP, the SE, CENAGAS and the ASEA are also involved (Table  4.6). 
The State participates in the market through PEMEX.  
                                                
38 Transitional Article 19 of the Decree amending and supplementing various provisions of the 
Constitution in r elation to energy.  
39 The EPSs are also EPEs. They are subject to control and coordination by PEMEX or the CFE.  
40 Affiliate companies are those in which PEMEX or the CFE holds, directly or indirectly, more than 50% 
of the capital, regardless of whether or n ot they were established in Mexico (Article 61 of the Mexican 
Petroleum Law and Article 59 of the Law on the Federal Electricity Commission).  
41 Mexican Petroleum Law and Law on the Federal Electricity Commission; Portal of the Office of the 
President of th e Republic . Viewed at:  http://presidencia.gob.mx/reformaenergetica . 
42 Article 2 of the Hydrocarbons Revenue Law (published in the Official Journal of 11  August  2014).  
43 Hydrocarbons Law (published  in the Official Journal of 11  August  2014), Regulations implementing 
the Hydrocarbons Law (published in the Official Journal of 31  October  2014) and Regulations on the activities 
referred to in Title 3 of the Hydrocarbons Law (published in the Official Jo urnal of 31  October  2014).  WT/TPR/S/35 2 • Mexico  
 
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  4.54.   In Mexico, the State is the owner of the hydrocarbons in the subsoil and only the State may 
conduct the "strategic" activities of explo ration and extraction via allocations or contracts but not 
concessions (Table  4.8).44 Surveying and surface exploration are carried out only by authorized 
enterprises, which may be PEMEX or contractors. The information gathered in carrying out these 
activit ies belongs to the State and must be delivered to the CNH, but the authorized enterprise 
may market it for a maximum period of 12 years.45 
Table 4.8 Authorizations to operate in the initial phases of the hydroc arbon production 
process  
Activity  Type  Beneficiary  Duration  Entity  
Surveying and 
surface 
exploration  Authorization  PEMEX and 
private 
companies  6 years (existing information)  
12 years (new information)  CNH 
Exploration and 
extraction  Allocation  PEMEX  Exploration: 25 years, with an extension of 
up to 25 years; extraction: 20  years, with 
an extension of up to 25  years  SENER  
Contract  PEMEX and 
private 
companies  25-35 years (exploration: 2 -4 years, 
evaluation: 1 -3 years, extraction: 
21-24 years) with two extensions of up to 
15 years (first 5 -10 years, second 5 years)  CNH 
Source:  Hydrocarbons Law of 2014.  
4.55.   SENER is responsible for granting allocations for exploration and extraction activities, 
provided it receives a favourable technical opinion from the CNH . The constitutional reform 
established a scheme, known as Round Zero, by means of which PEMEX obtained certain 
preferences (Box  4.3). Thus, all the allocations were granted to PEMEX. SENER may grant PEMEX 
other allocations subsequently and exceptionally.46 It is estimated that, under Round Zero, SENER 
awarded PEMEX 83% of Mexico's total proven and probable reserves, as well as 21% of total 
prospective resources. This represents more than 44  billion barrels of crude oil equivalent 
(MMbcoe), which would make it possible to produce 2.5  million barrels per day for 20 years. Round 
Zero does not prevent PEMEX from competing in rounds of bidding for contracts.47 PEMEX has the 
right to renounce allocations or to cede them to another EPE; in both cases, SENER's approv al is 
required and the CNH has to be informed (Art icle 8 of the LH).  
Box 4.3 Round Zero  
Round Zero allowed PEMEX to retain:  
a. fields in which exploration investments had been made and for which a development plan had been 
submitted. In response to this request it was given a period of up to five  years to fulfil the development 
plan, it being provided that otherwise the field would revert to the State.  
b. producing fields with respect to which it had shown that it was technically and financially capable of 
carrying out the activities efficiently and competitively.  
PEMEX obtained 100% of the proven and probable reserves it requested and 68% of the prospective 
resources.  
Source:  Transitional Article 6 of the Decree amen ding and supplementing various provisions of the Political 
Constitution of the United Mexican States in relation to energy; and SENER (2015), 3er informe de 
labores.  Viewed at: http://www.gob.mx/cms/uploads/attachment/file/25591/3erInformeLabores.pdf . 
                                                
44 An allocation is the administrative legal act whereby the Executive grants PEMEX the exclusive right 
to carry out hydrocarbon exploration and extraction activities in the allocation area for a specified period of 
time. 
45 Article 32 of the LH and Article 40 of the General administrative provisions concerning hydrocarbon 
surveying and surface exploration authorizations (published in the Official Journal of 26  January  2015 and 
amended by the Official Journal of 15  April 2015).  
46 Online information from the Government of Mexico . Viewed at:  
https://www.gob.mx/cms/uploads/attachment/file/10233/Explicacion_ampliada_de_la _Reforma_Energetica1.p
df. 
47 Online information from SENER . Viewed at:  http://www.gob.mx/sener/articulos/ronda -cero-y-
migracion -de-contratos -de-pemex ; Government Reform Portal . Viewed at:  http://reformas.gob.mx/reforma -
energetica/que -es; and SENER (2015), 3er informe de labores . Viewed at:  
http://www.gob.mx/cms/uploads/attachment/file/25591/3erInformeLabores.pdf . WT/TPR/S/35 2 • Mexico  
 
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  4.56.   The 2014 Mexican Petroleum Law stipulates that PEMEX must create subsidiary production 
enterprises (EPS) to carry out hydrocarbon exploration and extraction activities. Th e company 
PEMEX Exploración y Producción (PEP) was thus established in 2015.48 PEMEX may also sign 
services contracts with private suppliers for carrying out all ocation -related activities (Article  9 of 
the LH). At the same time, the  LH allows PEMEX to "migr ate" (convert) an allocation into an 
exploration and extraction contract. There are two "migration" procedures: (a) "migration" allows 
PEMEX to enter into a partnership with private companies to explore and exploit highly complex 
areas requiring technical specialization, in which the private partner is selected by means of a 
tender process organized by the CNH; the partnership contracts are known as "farm -out" 
contracts; (b)  "migration" allows PEMEX to change the legal nature of the contracts signed with 
private service providers before the reform, that is, comprehensive exploration and production 
contracts (CIEP) and financed public works contracts (COPF); in this case  "migration" does not 
require a tender process.49 
4.57.   Tendering for exploration and extraction contracts is organized in accordance with the 
provisions of the LH. SENER, the SCHP and the CNH participate in the tender process. SENER 
selects the areas to be bid for and drafts the technical clauses for the bidding conditions, in 
consultation with the F ederal Economic Competition Commission (COFECE) with regard to the 
prequalification criteria and the award mechanism; the SCHP determines the economic terms of 
the contracts and the economic variables of the award procedure; and the CNH is responsible for 
the bidding process and awards and signs the contracts.  
4.58.   The public tender process begins with an invitation to bid from the CNH published in the 
Official Journal and on the Internet page www.rondasmexico.gob.mx . At least 90 days are allowed 
for submitting bids. Bids may be submitted by PEMEX and private companies established in 
Mexico, individually or in a consortium or partnership with other companies. The process includes 
the prequalification of the contractors. SENER may decide whether State participatio n is 
mandatory; the State may participate through PEMEX or the Mexico Energy Fund of Funds (FdeF 
México Energía) . This happens when: (a) the field for tender co -exists with a field allocated to 
PEMEX; (b) when there is a possibility of PEMEX benefiting fro m technology transfer; (c)  the 
project is financed by FdeF México Energía ; or (d) there is a possibility of cross -border deposits 
being discovered. The State participation must not amount to more than 30% of the investment. If 
there is a possibility of enc ountering cross -border deposits, the State has to contribute at least 
20% of the investment (Articles  16-17 and 28 of the LH).  
4.59.   The LH establishes a mechanism for awarding contracts by means of auctions, which may 
take one of three forms: ascending -price, d escending -price, or sealed -bid first price. The 
authorities indicated that the sealed -bid first price method was the type of auction used in the 
tender processes . The main element to be taken into account in awarding the contract is the price 
that the Stat e is offered ; the amount that the contractor undertakes to invest may also be taken 
into account.50 There is an exception to the use of auctions for awarding contracts. This occurs in 
the case of mining concession -holders, who may apply directly for a natur al gas exploitation 
contract. However, the natural gas must be extracted in a coal mine that the holders are 
exploiting.51 
4.60.   SENER establishes a procurement model for each contract area that is tendered or awarded 
directly, in which case it may choose, inter alia, between services, profit - or production -sharing 
and licensing contracts. Contracts that combine elements specific to each o f these may also be 
signed (Article  18 of the LH). The Hydrocarbons Revenue Law determines the considerations 
received by the S tate and the contractor under each type of contract. The considerations received 
by the State include royalties, a contractual sum for the exploration phase, a contractual sum in 
the form of a percentage of the operating profit and a signature bond. All th e contracts include an 
                                                
48 Article 59 of the Mexican Petroleum Law and Decision creating the Subsidiary State Production 
Enterprise of Petróleos Mexicanos, called PEMEX Exploración  y Producción, issued by the Board of Directors of 
Petróleos Mexicanos (published in the Official Journal of 28  April 2015). The enterprises PEMEX Transformación 
Industrial, PEMEX Logística and PEMEX Etileno were also created.  
49 Articles 12 and 13 of the L H, transitional Article 28 of the LH, and SENER (2015), 3er informe de 
labores . Viewed at: http://www.gob.mx/cms/uploads/attachment/file/25591/3erInformeLabores.pdf . 
50 Article 26 of the Hydrocarbons Revenue Law.  
51 Articles 11 -31 of the LH and SENER (2015), Prospectiva de Petróleo Crudo y Petrolíferos 2015 -2029. 
Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/44327/Prospectiva_Petroleo_Crudo_y_Petroliferos.pdf . WT/TPR/S/35 2 • Mexico  
 
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  adjustment mechanism actuated when, for example, the price of crude oil exceeds estimates or a 
significant find is made. The adjustment mechanism allows for the contract to provide a better 
return for the State.52 The authorities expe ct the contracts with the private sector to increase the 
revenue from petroleum and tax receipts.53 
4.61.   The Law envisages three possible ways of marketing the hydrocarbons extracted. Private 
companies may: (a) directly market the hydrocarbons they receive as a consideration (licensing 
contracts), (b) deliver all or part of the output to the State marketing enterprise (services or 
profit -sharing contracts) or (c) deliver some to the State marketing enterprise and market the rest 
directly (production -sharing contr acts). The LH stipulates that the State must market the 
hydrocarbons through a marketing company retained by the CNH. On a transitional basis, up to 
the end of 2017, the CNH may contract directly with PEMEX or one of its subsidiaries to act as 
marketer (th e contract will not be renewable). In 2018, the marketing company will be selected by 
tender.54 
4.62.   Round One of tendering for hydrocarbon exploration and extraction contracts began in 2014 
(Table A4.1). In November  2016, the four calls for bids envisaged were concluded and, as a result, 
38 production -sharing or licensing contracts were awarded.55 In the same month, bids were invited 
under Round Two and 41 areas put out to tender for exploration and extraction (Table A4.1). To 
ensure transparency, the information  relating to a contract (for example, terms and conditions, 
payments made to contractors and income received by the State) has to be published on the 
Internet page www.rondasmexico.gob.mx  or, once the contract  has been signed, on the Internet 
page of the CNH.56 
4.63.   The LH calls for a local content requirement in allocations and contracts. In 2014, the 
Ministry of the Economy (SE) published the methodology for calculating the minimum percentage 
local content.57 The LH  stipulates that the local content will go on gradually increasing, from a 
minimum percentage of 25% in 2015 to 35% in 2025. The local content requirement will be less in 
the case of deep and ultra -deep water activities, owing to the type of technology req uired, which 
might not be available in Mexico.58 In 2014, SENER, with account for the opinion of the SE, 
established thresholds for local content requirements, which differ according to whether it is a 
question of allocations or contracts, exploration or ex traction and land or sea areas (Table  4.9). 
The SE is responsible for monitoring compliance with the local content requirements.  
Table 4.9 Local content in PEMEX allocations in Rounds 1 and 2 contracts  
Tender  Contract 
areas  Location  Exploration  Evaluation  Development 
(extraction)  Production  
Round One        
1st  14 Shallow 
water  13% n/a 25% 1st year up 
to 35% in 2025  35% 
2nd  5 Shallow 
water  n/a 17% 25% 1st year up to 
35% in 2025  35% 
3rd  25 Land n/a 22% 27% 1st year up to 
38% in 2025  38% 
4th  12 Deep water  3%a, 6%, or 8%  3%a, 6%, or 
8% 4% 10% 
                                                
52 SENER (2015), Prospectiva de Petróleo Crudo y Petrolíferos 2015 -2029. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/44327/Prospectiva_Petroleo_Crudo_y_Petroliferos.pdf . 
53 Online information from the Government of Mexico . Viewed at:  
https://www.gob.mx/cms/uploads/attachment/file/10233/Explicacion_ampliada_de_la_Reforma_Energetica1.p
df; and Government Reform Portal . Viewed at:  http://reformas.gob.mx/reforma -energetica/que -es. 
54 Article 28 and transitional Article 8 of the LH and Centre for Public Finance Studies (2014), Reforma 
Energética: principales modificaciones al régimen fiscal en mate ria de hidrocarburos , CEFP/011/2014. Viewed 
at: http://www.cefp.gob.mx/publicaciones/documento/2014/septiembre/cefp0112014.pdf . 
55 Online information from the CNH . Viewed at:  http://ronda1.gob.mx . 
56 Online information from the Government of Mexico . Viewed at:  
https://www.gob.mx/cms/uploads/attachment/file/10233/Explicacion_ampliada_de_la_Reforma_Energetica1.p
df; and information provided by the authorities.  
57 Article 46 of the LH and Decision establishing the methodology for measuring local content in 
allocations and contracts for the exploration and extraction of hydrocarbons, as well as for permits in the 
hydrocarbons industry (published in the Official Journal of 13  November  2014).  
58 Transitional Articles 46 and 24 of the LH and Decision establishing the local c ontent values for 2015 
and 2025 in connection with hydrocarbon exploration and extraction activities carried out in deep and 
ultra-deep waters (published in the Official Journal of 29  March  2016).  WT/TPR/S/35 2 • Mexico  
 
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  Tender  Contract 
areas  Location  Exploration  Evaluation  Development 
(extraction)  Production  
Round Two        
1st 15 Shallow 
water  15% 17% 26% 1st year up to 
35% in 2025  35% 
2nd 14 Land 26% 26% 27% 1st year up to 
38% in 2025  38% 
Partnerships        
Trión  2 Deep water  3%a, 6%, or 8%  3%a, 6%, or 
8% 4% 10% 
a Initial period, first additional period and second additional period, respectively.  
n/a: Not applicable.  
Source:  Information provided by the authorities.  
4.64.   The allocations and contracts also include clauses for giving preference to domestic 
suppliers as well as for promoting the hiring of Mexican nationals. Preference will be given to the 
purchase of goods, services and works from domestic suppliers if the conditions they offer (price, 
quality or delivery dat e, for example) are similar to those being offered by foreign suppliers 
(Article 128 of the LH). There are also other initiatives on the part of the SE to encourage the 
greater participation of domestic suppliers in the hydrocarbons sector (Box 4.4).  
Box 4.4 Some measures to encourage the participation of domestic suppliers in the 
hydrocarbons sector  
In 2014, PEMEX transferred the Public Trust Fund for Promoting the Development of Domestic Suppliers and 
Contract ors for the Energy Industry to the SE. The Trust Fund is a fund that specializes in promoting the 
participation of domestic suppliers and the development of the production chains in the energy sector, 
through which financing is provided for those companies  that do not meet the requirements of the energy 
industry with respect to regulations, standards and certification. The maximum amount of financing is 
between 50% and 70% of the total to be financed. While the Trust Fund was being managed by PEMEX, 
financi ng amounting to Mex$25.9  million was granted for the benefit of 406  suppliers (52 projects). In 2015, 
39 projects were concluded. As of November  2016, the new Trust Fund had not yet granted any financing, 
having confined itself to bringing to a conclusion the projects already existing at the time of transfer.  
Source:  WTO Secretariat, on the basis of SENER (2015), 3er informe de labores 2014 -2015,  viewed at: 
http://transparencia.energia.gob.mx/rendicion_cuentas/archivos/SENER%20 -
%203er_Informe_Labores -web.pdf ; and information provided by the authorities.  
4.65.   PEMEX pays levies to the State for allocations. The Hydrocarbons Revenue Law of 2014 
establi shed the levy regime, which includes exploration, extraction and shared profit levies.59 The 
Hydrocarbons Revenue Law also established the tax regime for PEMEX and the contractors. 
Since  2015, the taxes payable have been the ISR and a monthly exploration an d extraction tax 
paid to the state and municipal authorities. In addition, PEMEX has to pay an annual dividend to 
the State.60 The amount of the annual dividend corresponds to 30% of the previous year's 
after-tax income .61 The dividend was to be paid for the  first time in 2016 (on 2015 income), but it 
has been proposed that payment be suspended in view of PEMEX's financial situation following the 
fall in the international price of oil.62 VAT is not paid on the execution of the contract but is paid on 
allocatio ns.63 
4.66.   The Mexican Petroleum Fund for Stabilization and Development (FMP) was set up in  2014 to 
manage, invest and distribute the income derived from allocations and contracts.64 In particular, 
                                                
59 Transitional Article 2 of the Hydrocarbons Revenue Law (O fficial Journal of 11 August 2014).  
60 Mexican Petroleum Law.  
61 A gradual decrease in the annual dividend is planned, to 15% of income by 2021 and 0% by 2026.  
62 Article 97 and transitional Article 14 of the Mexican Petroleum Law, and proposed Federal Revenu e 
Law for fiscal year 2016. Viewed at: 
http://www.transparenciapresupuestaria.gob.mx/work/models/Finanzas_Publicas/docs/paqu ete_economico/ilif
/ilif_2016.pdf . 
63 Centre for Public Finance Studies (2014), Reforma Energética: principales modificaciones al régimen 
fiscal en materia de hidrocarburos , CEFP/011/2014. Viewed at: 
http://www.cefp.gob.mx/publicaciones/documento/2014/septiembre/cefp0112014.pdf . 
64 Law on the Mexican Petroleum Fund for Stabilization and Develop ment (published in the 
Official  Journal of 11  August  2014); transitional A rticle 14 of the Decree amending and supplementing various WT/TPR/S/35 2 • Mexico  
 
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  the FMP is intended to build up and manage a long -term savings re serve. Although other funds for 
managing part of the revenue from petroleum existed before the reform, such as the Oil Revenue 
Stabilization Fund, they were of limited scope and an explicit savings mechanism had not been 
established. The FMP collects and d istributes all the income (except for taxes) that the State 
receives for hydrocarbon extraction activities (Chart  4.1). The FMP also calculates the 
considerations, in accordance with the terms of each contract, and pays the contractors those 
which are due to them. The Bank of Mexico (Banxico) manages the FMP, while the SHCP 
supervises its operation. The FMP has been operating since 2015.65 When the amount that the 
Fund receives exceeds 4.7% of GDP, a savings reserve begins to be built up. When the savings 
reserve reaches 3% of the previous year's GDP, 40% of the income collected will continue to be 
added to the savings reserve, while the rest will be transferred to the pensions system, to R&D 
projects or to fellowships.  
Chart 4.1 Functioning of the Mexican Petroleum Fund for Stabilization and Development  
 
a PEMEX is marketing hydrocarbons on behalf of the State until the end of 2017.  
Source:  Article 16 of the Law on the Mexican Petroleum Fund for Stabilization and Development.  
4.67.   A permit from SENER or the CRE is required to operate in the processing and logistical 
branches of the hydrocarbons industry (Table  4.10) and to install and manage integrated transport 
(by pipeline) and storage systems for natural gas, pet roleum products and petrochemicals. Permits 
may be ceded, subject to authorization by SENER and the CRE.66 
Table 4.10 Permits for operating in the middle and subsequent phases of the 
hydrocarbons production pro cess 
Activity  Type  Beneficiary  Duration  Governing 
body  
Middle phases of production      
Transport of hydrocarbons, petroleum products and 
petrochemicalsa 
Permit  PEMEX and 
private 
companies  30 years, once 
renewable for 
15 years  CREb Storage of hydrocarbon s, petroleum products and 
petrochemicals  
Marketing of hydrocarbons, petroleum products and 
petrochemicals  
                                                                                                                                                  
provisions of the Constitution in relation to energy; and online information from the FMP . Viewed at:  
http://www.fmped.org.mx . 
65 Online information from the FMP. Viewed at:  http://www.fmped.org.mx/%7B43A01066 -DD67 -B66F-
60A7-D260F8D3171E%7D.pdf . 
66 Article 53 of the LH and Article 50 of the Regulations on the activities referr ed to in Title 3 of the 
Hydrocarbons Law (Regulations published in the Official Journal of 31 October 2014).  Allocation s 
(PEMEX)  
Contra ctors 
State Marketing Enterprise  
(PEMEX)a  FMP 
Savings reserve  Stabilization funds, 
special funds, 
sectoral funds and 
Federal Treasury  
Considerations 
(contracts )  Transf ers income 
for marketing  
Calculates  Pay fees  
Pay considerat ions Transfers  
Services, profit -sharing 
and production -sharing  
contracts  < 4.7% 
GDP 
> 4.7% 
GDP 
Pays considerations WT/TPR/S/35 2 • Mexico  
 
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  Activity  Type  Beneficiary  Duration  Governing 
body  
Subsequent phases of production      
Treatment and refining of petroleum  
Permit  PEMEX and 
private 
companies  30 years, once 
renewable for 
15 years  SENER  Processing and purification of natural gas  
Distribution of natural gas and petroleum products  CREb Retailing of natural gas and petroleum products  
a Only the transport of petrochemicals by pipeline requires a permit.  
b In 2014 and 2015, SENER issued the permits for LPG (storage, transport and distribution by means 
other than pipeline, and retail sale).  
Source:  Hydrocarbons Law of 2014 and Regulations on the activities referred to in Title 3 of the 
Hydrocarbons Law.  
4.68.   Although ther e is a methodology for calculating local content requirements in permits, the 
authorities point out that these requirements are not being applied.  
4.69.   The company that obtains the permit to transport and distribute (by pipeline) and store 
hydrocarbons, petrole um products and petrochemicals must offer open access and equal terms 
and treatment to any user wishing to use its infrastructure.67 The CRE and CENAGAS monitor the 
correct application of the rules of access. Since  2015, CENAGAS has managed and administered  
the natural gas transport (by pipeline) and storage system . CENAGAS also provides transport 
services, for which purpose, in 2015, PEMEX transferred its pipeline infrastructure to it.68 
4.70.   Although energy reform made it possible to invest directly in most hydr ocarbons sector 
activities, in some cases the opening -up has been gradual. For example,  where the marketing of 
hydrocarbons is concerned, the CNH has designated PEMEX to market hydrocarbons extracted 
under contract. PEMEX holds an exclusive, non -renewable contract ending on 31  December  2017. 
As from 2018, marketing will be contracted out under a tender process, in which the private sector 
will be able to participate. Where the retail sale of gasoline (petrol) and diesel is concerned, up 
until the end of 201 5 gas (petrol) stations operated only under the PEMEX brand, but as from 2016 
they began to operate under any brand and obtain supplies through PEMEX or another supplier. To 
promote competition, the LH stipulates that PEMEX must separate franchise contract s from supply 
contracts.69 Likewise, as from 2016, petrol stations are allowed to cancel their franchise 
agreements with PEMEX.70 Up until the end of 2015 only PEMEX could import petrol, diesel and 
LPG for marketing. However, as from 2015, SENER began granti ng private companies prior 
permits to import jet fuel and, since 2016, petroleum products.71 According to the authorities, in 
October  2016 SENER had granted 473  prior import permits.  
4.71.   In 2016, the tariffs for transporting, storing and distributing petrol, di esel and LPG, together 
with their retail prices (PVP), were regulated (Table  4.11). From 1  January  2017, the price of these 
products will begin to be gradually liberalized by region; in some regions the price established by 
the SHCP will continue to be use d. In those regions in which prices are determined by the market, 
the CRE will be able to regulate prices if the COFECE considers that there has been an unjustified 
increase. The retail prices of petrol and diesel are regulated under a price band system, i ntroduced 
in 2016, which allows the price to fluctuate between a minimum and a maximum which, according 
to COFECE, can be regarded as a basis for establishing market conditions.72 During the review 
                                                
67 Articles 70 -75 of the LH, and PowerPoint Presentation by the CRE of 2  September  2015. Viewed at: 
http://www.cre.gob.mx/documento/5597.pdf . 
68 Articles 66 -69 of the LH, Portal of the Office of the President of the Republic . Viewed at:  
http://presidencia.gob.mx/reformaenergetica ; and onl ine information from PEMEX . Viewed at:  
http://www.pemex.com/saladeprensa/boletines_nacionales/Paginas/2015 -099-nacional.aspx . 
69 Transitional Article 14 of the LH and CRE Resolution No.  RES/635/2015 of 17  September  2015.  
70 Transitional Article 14 of the LH and CRE Resolution No.  RES/156/2016 (published in the Official 
Journal of 22  March  2016).  
71 Transitional Articles 14 and 29 of the LH and Notice advising t hat, as from 1  April 2016, the Ministry 
of Energy will be able to grant petrol and diesel import permits to any interested party that complies with the 
legal provisions applicable (published in the Official Journal of 23  February  2016) and Decision establi shing the 
classification and coding of hydrocarbons and petroleum products whose import and export are subject to a 
prior permit from the Ministry of Energy (published in the Official Journal of 29 December 2014; latest 
amendment published in the Official Journal of 30 December 2015).  
72 COFECE Opinion OPN -014-2015 of 7  January  2016. Viewed at: 
http://www.cofece.mx:8080/cfcresoluciones/docs/Mercados%20Regulados/V 9/1/2429105.pdf . WT/TPR/S/35 2 • Mexico  
 
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  period, and prior to 2016, other methods of determining the  retail prices of petrol and diesel were 
applied, including controlled monthly increments and the fixing of a maximum retail selling price.73 
Table 4.11 Price control in the hydrocarbons sector  
 Entity  Method of regulation  Duration  
Tariffs for the transport, storage and 
distribution of natural gas  CRE Maximum tariff  Indefinite  
Tariffs for the transport and distribution of LPG  CRE Maximum tariff  Indefinite  
Retail prices of petrol and diesel  SHCP  Price band  system  Up to 31.12.2016a 
Retail price of LPG  SE Maximum price  Up to 31.12.2016  
a Initially up to 31  December  2017.  
Source:  Transitional Articles 14 and 29 of the LH, Revenue Law for fiscal year 2017, Decision notifying the 
maximum price band for petrol and diesel for 2016 and other indicated measures (published in the 
Official Journal of 24  December  2015), and online information from the CRE, viewed at: 
http://www.cre.gob.mx/articulo.aspx?id=478  and at: http://www.cre.gob.mx/articulo.aspx?id=456 . 
4.72.   The CRE continues to regulate the first -hand selling prices of some hydrocarbons, until 
COFECE declares the existence of effective competition.74 Currently, the first -hand selling price of 
natural gas, petroleum products and petrochemicals is regulated, whereas the selling price of 
crude oil was liberalized in 2015.75 The purpose of regulation is to ensure a fair market by 
promoting competition and div ersifying the options for buyers.76  
4.73.   Imports and sales of petrol and diesel are subject to the special tax on production and 
services (Section  3.1.5).  
4.74.   The CONACYT -SENER -Hydrocarbons Sectoral Fund is used for financing public, private and 
academic R&D projec ts in hydrocarbon exploration, exploitation and refining and in basic 
petrochemicals production, together with training programmes.77 
4.2.3.2   Market structure  
4.75.   On 1 January  2016, it was estimated that Mexico's remaining hydrocarbon reserves totalled 
24,074  million b arrels of crude oil equivalent (MMbcoe). Of these, 43% were proven reserves, 
26% probable reserves and 31% possible reserves. The reserves level fell by 45% between 2012 
and 2016. In 2016, PEMEX and 37 private companies were operating in the area of hydroc arbon 
exploration and extraction. Mexico has a 14,000 km network of oil and multipurpose pipelines and 
a 22.2  million barrel storage capacity.  
4.76.   PEMEX continues to control the sector's infrastructure, in particular the refineries and the 
transport and storag e network.78 In 2015, PEMEX transferred its gas pipeline network to 
CENAGAS, following the latter’s establishment as a provider of gas transport services.79 PEMEX 
                                                
73 Centre for Public Finance Studies (2014), ¿El qué, cómo y cuándo de la reforma energética? , 
CEFP/015/2014. Viewed at: 
http://www.cefp.gob.mx/pu blicaciones/documento/2014/septiembre/cefp0152014.pdf ; and Decision of the 
SHCP No.  016/2014 subjecting petrol and diesel to maximum retail prices (published in the Official Journal of 
1 January  2015).  
74 First-hand sales are the first sales of hydrocarbon s and petroleum products (produced locally or 
imported) made by PEMEX (or another company), on behalf of the State, to a third party in the domestic 
market. Article 28 and transitional Article 8 of the Hydrocarbons Law.  
75 Natural gas: CRE Resolution No.  RES/996/2015 (published in the Official Journal of 
19 February  2016); petroleum products and petrochemicals: CRE Resolution No.  RES/717/2015 (published in 
the Official Journal of 16  December  2015); and CRE Decision No.  A/044/2015 (published in the Official J ournal 
of 18 September  2015).  
76 Online information from PEMEX . Viewed at:  
http://www.gas.pemex.com.mx/PGPB/Productos+y+servicios/Gas+na tural/Marco+regulatorio/Qu%C3%A9+so
n+las+VPM . 
77 Online information from the National Science and Technology Council (CONACYT) . Viewed at:  
http://www.conacyt.mx/index.php/fond os-y-apoyos/fondos -sectoriales . 
78 SENER (2016), Diagnóstico de la industria de petrolíferos en México . Viewed at: 
http://energiaadebate.com/wp -content/uploads/2016/06 /PechPetroliferos.pdf . 
79 Online information from PEMEX . Viewed at:  
http://www.pemex.com/saladeprensa/boletines_nacionales/Paginas/2015 -099-nacional.aspx . WT/TPR/S/35 2 • Mexico  
 
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  must allow access to the rest of its infrastructure for transporting hydrocarbons, which it has  yet to 
do.80 
4.77.   Despite the reform, PEMEX continues to be Mexico's main producer of hydrocarbons and 
petroleum products (Table  4.12). During the review period, crude production continued to fall 
(Table  4.12). In 2015, the production level was 2,267  tbd, 11% b elow the level produced in 2012. 
The fall is attributable to the natural decline in reserves and PEMEX's limited financial and technical 
capacity for fully developing extraction activities.81 The oil extracted in Mexico comes mainly from 
mature fields and h igh levels of investment and technology are required to be able to recover the 
remaining oil. Thus, the reserves located in deep and ultra -deep waters have not yet been 
exploited; PEMEX has drilled wells for exploration purposes but has been unable to expl oit the 
deposits owing to the high cost of extraction.  
Table 4.12 Indicators for the hydrocarbons and derivatives industry, 2012 -2016  
 2012  2013  2014  2015  2016a 
Crude oil  (thousand barrels per day,  tbd) 
Production  2,548  2,522  2,429  2,267  2,183  
PEMEX share, %  100 100 100 100 99.9 
Domestic demand  1,211  1,229  1,161  1,063  986 
Imports  0.0 0.0 0.0 0.0 0.0 
Exports  1,298  1,190  1,148 1,177  1,182  
Natural gas  (million cubic feet per day, MMcfd)  
Productio n 6,385  6,370  6,532  6,401  5,927  
PEMEX share, %  100 100 100 100 99.4 
Domestic demand  6,678  6,952  7,209  7,504  .. 
Imports  2,129  2,516  2,861  3,548  .. 
Imports as a % of domestic demand  32 36 40 47 .. 
Exports  7.8 12.4 12.5 12.5 .. 
Petroleum products  (tbd) 
Production  1,301  1,057  996 922 1,015  
PEMEX share, %  100 100 100 100 100 
Domestic demand  1,464  1,432  1,347  1,352  1,439  
Imports  558 483 499 579 704 
Imports as a % of domestic demand  38 34 37 43 49 
Exports  85 114 140 134 193 
LPG  (tbd) 
Product ion 204 206 205 174 157 
PEMEX share, %  100 100 100 100 100 
Domestic demand  291 287 287 283 206 
Imports  86 80 85 105 127 
Imports as a % of domestic demand  29 28 30 37 62 
Exports  0.1 0.2 1.3 0.0 3.7 
.. Not available.  
a January -September.  
Source:  SENER Energy Information System, viewed at: http://sie.energia.gob.mx ; SENER (2016), 
Diagnóstico de la industria de petrolíferos en México , viewed at: 
http://www.gob.mx/cms/uploads/attachment/file/92090/DGP_Diagn_stico_petrol_feros_Mayo_2016
_FINAL.pdf ; and data provided by the authorities.  
4.78.   In the review period there was a fall in petroleum product produc tion, which in 2015 
reached its lowest level since 2012 (Table  4.12). The decline was due to operating problems in the 
refineries, which led to their operating at below capacity.82 Between January and September  2016, 
60% of the installed capacity of the nat ional refinery system was in use. The fall in production 
resulted in an increase in imports, which supplied 49% of domestic demand (Table 4.12). 
Moreover, between 2012 and 2015 there was also a fall in the demand for petroleum products. 
                                                
80 CRE Resolutions Nos.  RES/225/2016 and RES/226/2016, and online information from PEMEX . Viewed 
at: http://www.pemex.com/nuestro -negocio/logistica/Paginas/temporad a-abierta.aspx . 
81 Online information from the Government of Mexico: Energy Reform. Viewed at: 
http://reformas.gob.mx/reforma -energetica/que -es. 
82 PEMEX (2016), Informe anual 2015 . Viewed at: 
http://www.pemex.com/acerca/informes_publicaciones/Documents/Informe -Anual/Informe_Anual_2015.pdf .  WT/TPR/S/35 2 • Mexico  
 
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  The greatest fall w as recorded in the demand for fuel oil ( -65%) following the implementation of 
energy source substitution programmes in electricity production.83 
4.79.   Natural gas continues to be an important component of the Mexican energy mix. Domestic 
demand for natural gas ro se from 6,678  to 7,504 MMcfd between 2012 and 2015 (Table 4.12). 
Natural gas is used mainly in the electricity sector (51% of total demand), followed by the 
petroleum sector (29%) and the industrial sector (18%).84 The gas pipeline network comprises 
more th an 9,000 km of pipe and it is planned to lay an additional 5,000 km before 2019.85 
4.2.4   Electricity  
4.2.4.1   Regulatory framework  
4.80.   The Law on the Electricity Industry (LIE) of 2014, which repealed the Law on the Public 
Electric Power Service of 1975, regulates the Mexican  electricity sector. The Law introduced 
fundamental changes, ending the CFE's monopoly on electricity generation and allowing private 
sector investment. Since the energy reform, the State has retained only control over the 
"strategic" activities of transmi ssion and distribution, which are carried out by the CFE. Another 
"strategic" activity is the use of radioactive minerals for generating nuclear power, so that the 
State can generate electricity in nuclear power stations. However, the private sector may 
participate in strategic activities under contracts concluded with the State, but not under 
concessions. Public and private enterprises may participate in the marketing (supply) of electricity.  
4.81.   The sector's main regulatory institutions are SENER, the CRE and  CENACE (Table 4.6). 
CENACE is responsible for planning and supervising the national electrical system (SEN). The CFE, 
as a State -owned production enterprise (EPE), has been subject to payment of the ISR and an 
annual dividend based on its profits since 20 15.86  
4.82.   The electricity sector is composed of:  
a. the generating plants, which are classified according to their output (small power 
stations are those which produce less than 0.5 MW);   
b. the transmission network, operated by the CFE;  
c. suppliers, classified as sup pliers of qualified services (SSC), basic services (SSB) and last 
resort and non -trading suppliers; in 2016, the CFE was the only SSB in the Mexican 
electricity market; and  
d. the distribution network operated by the CFE.  
4.83.   End users are classified as qualifi ed or basic, according to their level of consumption. The 
qualified users are large users whose consumption exceeds the threshold established by SENER, 
which has been gradually falling, from 3 MW as at August  2015 to 2  MW as at August  2016 and to 
1 MW sinc e then. The rest are basic users (mostly residential or commercial users).87 
4.84.   To produce and market electricity in Mexico it is necessary to obtain a permit from the CRE, 
which is issued for a maximum period of 30 years. Small power stations are exempted fro m this 
                                                
83 SENER (2016), Diagnóstico de la industria  de petrolíferos en México . Viewed at: 
http://energiaadebate.com/wp -content/uploads/2016/06/PechPetroliferos.pdf ; and SENER (2015), Prospectiva 
de petróleo crudo y pe trolíferos 2015 -2029. Viewed at:  
http://www.gob.mx/cms/uploads/attachment/file/92090/DGP_Diagn_stico_petrol_feros_Mayo_2016_FINAL.pdf
. 
84 SENER (2014), Prospectiva de gas natural y gas L.P. 2014 -2018. Viewed at:  
https://www.gob.mx/cms/uploads/attachment/file/44327/Prospectiva_Petrole o_Crudo_y_Petroliferos.pdf ; and 
information provided by the authorities.  
85 Online information from CENAGAS . Viewed at:  http://www.cenagas.gob.mx/faq.html  and at: 
http://www.cenagas.gob.mx/res/plan_quinquenal/documento_plan_quinquenal_2015.pdf . 
86 Article 99 of the Law on the Federal Electricity Commission (published in the Official Journal of 
11 August  2014).  
87 Law on the Electricity Industry, and online information from the CRE . Viewed at:  
http://www.cre.gob.mx/documento/faq -regulacion -electricos.pdf . WT/TPR/S/35 2 • Mexico  
 
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  requirement, provided that they do not sell their output directly to qualified users (large buyers).88 
The LIE requires the vertical and horizontal separation of the activities of generation, transmission, 
distribution, marketing and input supply: on e and the same enterprise may not engage in several 
of these activities, unless it sets up subsidiaries.89 In accordance with the provisions of the LIE, in 
2016 the CFE established subsidiary production enterprises (EPS) for electricity generation 
(CFE Generación), distribution (CFE Distribución), transmission (CFE Transmisión) and supply 
(CFE Suministrador de Servicios Básicos).90 
4.85.   Before the reform, the private sector could only participate in certain electricity -generating 
projects. The CRE granted permits to private companies for self -supply, co -generation and 
small -scale production (up to 30 MW) projects, as well as for them to operate as independent 
producers, subject to the requirement that the output would be sold to the CRE or exported. Since 
the refor m, the private sector has been able to participate in generation. In accordance with the 
LIE, the permits granted under the former law remain in force, although the holders could opt to 
avail themselves of the new regulatory provisions.91 
4.86.   The CFE provides t ransmission and distribution services and CENACE is charged with 
drawing up plans for the expansion of the transmission network. The CFE is authorized to enter 
into contracts with private companies in order that, either individually or in partnership with the 
CFE, they may finance, install, maintain and operate infrastructure. Contracts are awarded by 
means of competitive procedures which ensure free competition. Contract execution is subject to a 
minimum percentage of local content, determined for each con tract by SENER, after obtaining the 
opinion of the SE.92 The contracts must allow the CFE to use the technology and experience of 
private companies that employ the best practice in order to reduce operating costs and power 
losses. In 2016 (November), no con tract with the private sector had been signed.  
4.87.   Generating plants need an interconnection contract issued by the CRE and signed with the 
transporters, in accordance with the provisions of the LIE (Article 18). CENACE establishes the 
interconnection requirem ents for new generating plants and is responsible for ensuring that  
generating companies have open access to the transmission and distribution networks on equal 
terms.93 Following the reform, new interconnection criteria were  issued to speed up the 
proceedi ngs.94 
4.88.   The LIE established a new wholesale electricity market (MEM) which has been in operation 
since 2016 (Chart 4.2). The CENACE operates the MEM. During the first year of operation, SENER 
will oversee the operations of the MEM; thereafter they will be ov erseen by the CRE. In order to 
participate in the MEM, it is necessary to sign a participant's contract with CENACE and, moreover, 
to comply with the requirements for operating in the MEM.95 For example, participants have to 
lodge security to support their operations in the event of non -payment.96 In August  2016, eight 
generating companies (of which two were private), three SSCs and one SSB (the CFE) were 
operating in the MEM.97 
                                                
88 Power stations used for self -supply  likewise do not require a permit (Articles  17 and 46 of the LIE and 
Articles 16 and 20 of the Regulations implementing the LIE).  
89 Article 8 of the LIE, and Raquel Bierzwinsky, David Jiménez and Javier Felix (2014), Un nuevo 
mercado eléctrico en México . Viewed at: 
http://www.chadbourne.com/sites/default/files/publications/nuevo_mercado_electrico_mexico_0914.pdf . 
90 The establishing Decisions wer e published in the Official Journal of 29  March  2016.  
91 WTO document WT/TPR/S/279/Rev.1 of 10  July 2013, transitional Article 2 of the LIE, and online 
information from the CRE . Viewed at:  http://www.cre.gob.mx/documento/faq -regulacion -electricos.pd f. 
92 In November  2016, the SE was in process of drafting the methodology for measuring the local 
content percentage. The local content requirement does not apply if there are trade agreeme nts that otherwise 
require. Articles 4 and 30 of the LIE, and online information from the CRE . Viewed at:  
http://www.cre.gob.mx/documento/faq -regulacion -electricos.pdf . 
93 Articles  33 and 107 -108 of the LIE.  
94 The criteria were published in the Official Journal of 2  June 2015; and SENER (2015), Prospectiva del 
Sector Eléctrico 2015 -2029. Viewed at:  
https://www.gob.mx/cms/uploads/attachment/file/44328/Prospectiva_del_Sector_Electrico.pdf . 
95 According to the authorities, nine operating manuals constituting the Rules of Operation of the MEM 
have been published.  
96 The requirements ar e contained in the operating manuals.  
97 There were six generators, seven SSCs and three qualified users waiting to enter the MEM.  WT/TPR/S/35 2 • Mexico  
 
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  4.89.   In the MEM, forward electricity contracts are concluded for the purchase and sale of 
electrical energy and associated products (for example, related services and financial transmission 
rights). The CFE is obliged to purchase electricity under electricity hedging contracts allocated by 
auction, to ensure the best prices for basic users. Qualified users (large users) may purchase 
electricity from an SSC or directly from the power stations, without an intermediary, that is, 
without requesting the services of the SSCs. SENER has reduced the threshold for classification as 
a qualified user to  enable more users to purchase energy directly or through an SSC.98  
Chart 4.2 Energy transactions on the wholesale electricity market  
 
a Small generating plants participate through a supplier. They can also  sell their output directly to 
qualified users, but require permission from the CRE.  
Source:  WTO Secretariat, on the basis of Articles 96 and 98 of the LIE, Article 16 of the Regulations 
implementing the LIE, and online information from the CRE, viewed at:  
http://www.cre.gob.mx/documento/faq -regulacion -electricos.pdf . 
4.90.   The CRE and the SHCP regulate the prices for transmission, distribution and basic supply 
and last resort services ( Table 4.13).99 
Table 4.13 Tariff regulation in the electricity sector in 2016  
Tariffs  Entity   
Transmission  CRE The tariff is fixed by voltage level and type of customer (generators, SSCs, SSBs, qualified 
users). The transmission tariffs established by the CRE for the period 2016 -2018 are 
determined on the basis of the quantities injected or extracted by network users, weighted by 
the voltage level, depending on whether the users are generators or consumers (qu alified users 
or SSCs and SSBs). The tariffs are divided into two blocks according to the voltage level 
(voltage greater than or equal to 220 kV and less than 220 kV); 30% of the tariff is charged to 
generators and 70% to consumers.  
Distribution  CRE The tariff is fixed by distribution area, voltage level and level of demand. In order to determine 
the tariffs, the “income required” (IR), which the CFE is authorized to receive for providing the 
service, is fixed. The IR is then allocated to the different typ es of user, generating tariffs which 
are adjusted annually in accordance with inflation, operating costs and economies of scale.a  
Basic supply  CRE/SHCP  The tariff is fixed by group of customers (domestic, industrial, agricultural, commercial or 
industria l) and level of consumption. According to the LIE, the CRE is to issue and apply the 
methodology for determining the calculation and adjustment of the basic supply tariffs.b Until 
the CRE has fixed the tariffs, the tariff decisions issued by the SHCP will remain in force.  
Supply of last 
resort  CRE The CRE  is working out the methodology for determining these tariffs (November  2016).  
a This method is being used to determine the annual distribution tariffs during the period 2016 -2018.  
b The Federal Executi ve will be able to determine a tariff -fixing mechanism different from that 
established by the CRE, for specific groups of users.  
Source:  Calculation protocols for CRE tariffs, viewed at: http://www.cre .gob.mx/documento/5846.pdf  and 
at: https://www.gob.mx/cre/es . Online information from the CFE, viewed at:  
http://www.cfe.gob.mx/casa/Conocetutarifa/Paginas/Acuerdos -que-autorizan -o-modifican -
tarifas.aspx ; and information provided by the authorities.  
4.91.   In 2015, the support granted for electricity consumption amounted to Mex$91,433  million. 
Of this sum, 89. 3% was destined for the residential consumer, 10.4% for the agricultural sector, 
and the rest for the industrial and services sectors. There were no major fluctuations in the 
average price of electricity between 2012 and 2016 (Chart 4.3).  
                                                
98 Articles 96 and 98 of the LIE, Article 16 of the Regulations implementing the LIE. Online information 
viewed at: http://www.cre.gob.mx/documento/faq -regulacion -electricos.pdf .  
99 Article 137 of the LIE, and online information from the CFE . Viewed at:  
http://www.cfe.gob.mx/casa/Conocetutarifa/Paginas/Acuerdos -que-autorizan -o-modifican -tarifas.aspx . Generating p lants 
> 0.5 MW  
Generating p lants 
< 0.5 MWa SSB 
(CFE)  Basic 
users  Qualified 
users  
Medium -term purchases  
through auctions   Short -term purchas es for use on 
the same day ("spot") o r the 
following day  SSC 
 
Supplies at  
regula ted 
prices  Supplies  
Purchase direct ly WT/TPR/S/35 2 • Mexico  
 
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  Chart 4.3 Average price of electricity, 2012 -2016  
0.00.51.01.52.02.53.03.5
2012 2013 2014 2015 2016 (August)
Residential Industrial Commercial Services
Agriculture MSMEs Large enterprisesPesos /kWh at current prices 
 
Source:  Data from SENER, viewed at: http://egob2.energia.gob.mx/portal/electricidad.html ; SENER Energy 
Information System, viewed at: http://sie.energia.gob.mx ; and information provided by the 
authorities.  
4.92.   The price stability in the domestic and agricultural sectors is mainly attributable to the 
assistance granted, whi ch made it possible to avoid major fluctuations in the average price of 
electricity between 2012 and 2014.100 On the other hand, the downward trend in average 
electricity prices in the industrial and commercial sectors is due to the gradual replacement of fu els 
such as fuel oil by lower -cost and more environmentally friendly sources (natural gas and 
hydroelectric plants, for example).101 According to the authorities, between September  2012 and 
September  2016, real reductions of between 8.6% and 20% in average e lectricity prices were 
observed.102 
4.93.   The LIE (Articles 113 -116) made it obligatory for distributors and suppliers of basic services 
to provide services in rural communities and marginalized zones. They may resort to the Universal 
Electricity Service Fund, set  up in 2014, to obtain financing for electrification projects in 
marginalized rural and urban areas selected by SENER.103 
4.94.   Since 2012 there have been initiatives to promote the use of clean or renewable energies in 
electricity production. These initiatives ar e governed by the LIE, the Law on Geothermal Energy 
(LEG) of 2014 and the Law on Energy Transition (LTE) of 2015. The LIE stipulated the introduction 
of clean energy certificates (CEL) for promoting the use of renewable sources in electricity 
generation. T he Law provides for SENER to determine an annual minimum energy percentage that 
must come from renewable sources. The CRE will allot generating companies a CEL for every MWh 
generated from renewable sources. The certificates will be sold in the MEM to SSCs , SSBs and 
qualified users. The Law on Energy Transition (LTE) of 2015 establishes a four -year transition 
period, starting from 2018, during which a certain flexibility will be allowed in acquiring CELs.104 
The LTE stipulates that SENER is to set a target of  25% clean energy in electricity generation for 
2018, 30% for 2021 and 35% in 2024.105 It is hoped to increase the clean energy share to 40% of 
the total energy supply in 2035 and 50% in 2050.106 The LTE also establishes the Transition 
                                                
100 The increase or decrease in subsidies depends on the trend in the prices of the fuels used for  
generating electricity; the domestic and agricultural tariffs are kept constant, while the subsidies vary in an 
inverse ratio to fuel prices.  
101 SENER (2015), Prospectiva del Sector Eléctrico 2015 -2029. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/44328/Prospectiva_del_Sector_Electrico.pdf . 
102 Residential tariffs increased nominally by 4% during the period, which corresponds to a real 
reduct ion of 8.6%; commercial tariffs experienced a nominal increase of 0.1% and a real reduction of 12%, 
agricultural tariffs a nominal reduction of 9% and a real reduction of 20%, and industrial tariffs a nominal 
reduction of 4.8% and a real reduction of 16.3% . 
103 SHCP Press Release No.  073/2014 of 30  September  2014. Viewed at: 
http://www.shcp.gob.mx/Biblioteca_noticias_home/comunicado_073_2014.pdf . 
104 Articles 68 -74 and transi tional Article 22 of the Law on Energy Transition.  
105 Law on Energy Transition (published in the Official Journal of 24  December  2015), which repeals the 
Law for the development of renewable energies and the financing of the energy transition and the Law fo r the 
sustainable supply of energy.  
106 Online information from the CRE . Viewed at:  http://www.cre.gob.mx/documento/faq -regulacion -
electricos.pdf . WT/TPR/S/35 2 • Mexico  
 
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  Strategy to Promote the Use of Cleaner Technologies and Fuels, the National Programme for a 
Sustainable Energy Supply and the Special Programme for Energy Transition as planning 
instruments of the national policy on energy transition. In these instruments the financial 
incentives  that will be granted to promote energy efficiency will have to be defined.  
4.95.   The Law on Geothermal Energy (LEG) of 2014 regulates the activities of surveying, 
exploration and exploitation in areas with geothermal potential, which can be carried out by both 
the CFE and private companies. To commence surveying activities the only requirement is to 
register with SENER, whereas to engage in exploration activities it is necessary to obtain a permit 
from SENER, which is granted for a period of three years and a ma ximum area of 150 km2. SENER 
directly awarded the CFE concessions to exploit 13  geothermal areas. The CFE may enter into 
partnerships with the private sector to develop these projects. SENER has also granted the CFE 
exploration permits.107 
4.96.   There are two sect oral funds that support R&D in development projects for the 
diversification of energy sources, the use of renewable energy and energy efficiency. The 
CFE-CONACYT Sectoral Fund for Research and Technological Development in Energy is used to 
finance projects  carried out by public, private and academic institutions, and the CONACYT -SENER 
Sectoral Fund for Energy Sustainability only assists public and private institutions.  
4.2.4.2   Market structure  
4.97.   At the end of 2015 there were 1,153 power stations in Mexico, with a tot al generating 
capacity of 68,044 MW (4% more than in 2012). The CFE accounted for 81% of capacity. Most of 
the electricity (73%) was generated in fossil -fuel burning stations.108 However, it is possible to 
observe a certain decrease in the use of fuel oil, w hich is being replaced by natural gas and clean 
and renewable energies.109 
4.98.   Electricity consumption grew by 5% between 2012 and 2015 and by the end of the period 
had reached 228,232 GWh. After declining in 2013 and 2014, electricity generation recovered to 
309,552 GWh in 2015. In the same year, the CFE produced 84% of the total electricity generated 
in Mexico. The number of users rose from 36.4  million to 39.7  million between 2012 and 2015; 
89% are residential customers.110 The CFE supplies electricity to all th e basic users.  
4.99.   The CFE announced a series of improvements in the electricity service between 2012 and 
2015, which resulted in a reduction in the percentage of energy losses from 16% to 13.1%, 
thereby cutting the CFE’s losses from Mex$52  million to Mex$42  million. However, according to the 
CFE, losses remain high.111 
4.100.   The length of the transmission network has increased by 9,000 km since 2012 to reach 
60,000  km.112 In 2016, the first contract for private sector participation in the building and 
operation of trans mission lines, in partnership with the CFE, was put out to tender.113 
                                                
107 Law on Geothermal Energy (publis hed in the Official Journal of 11  August  2014) and its 
implementing Regulations (published in the Official Journal of 31  October  2014), CFE Press Bulletin of 
26 July 2015.  
108 Data from SENER . Viewed at:  http://egob2.energia.gob.mx/portal/electricidad.html . 
109 SENER (2015), Prospectiva del Sector Eléctrico 2015 -2029. Viewed at:  
https://www. gob.mx/cms/uploads/attachment/file/44328/Prospectiva_del_Sector_Electrico.pdf ; and SENER 
Energy Information System . Viewed at:  http://sie.energia.gob.mx . 
110 Data from SENER . Viewed at:  http://egob2.energia.gob.mx/portal/electricidad.html ; and information 
provided by the authorities.  
111 CFE (2016), Informe Anual 2015 . Viewed at: 
http://www.cfe.gob.mx/inversionistas/informacionareguladores/Documents/Informe%20Anual/Informe -Anual -
2015-CFE-Acc.pdf . 
112 SENER Energy Information System. Viewed at: http://sie.energia.gob.mx . 
113 SENER Press Bulletin No.  047 of 20  April 2016. Viewed at: 
https://www.gob.mx/sener/prensa/mexico -prepara -las-primeras -licitaciones -de-lineas -de-transmision -con-
participacion -de-capital -privado -en-asociacion -con-la-cfe. WT/TPR/S/35 2 • Mexico  
 
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  4.3  Manufacturing  
4.3.1   Main features  
4.101.   Manufacturing continues to be of great importance for the Mexican economy and the sector 
is highly diversified. In 2015, manufacturing industry accounted for 18 .8% of gross value added at 
basic prices. Between 2011 and 2015, the sector grew at an average annual rate of 3.0% in real 
terms, higher than the rate for GDP (2.5%). Manufacturing exports accounted for almost 85% of 
all Mexico's exports in 2015 (in terms of the WTO classification of non -agricultural products). 
Between 2011 and 2015, Mexican exports of manufactured goods grew at an average rate of 
5.1%. The manufacturing sector's productivity index was 106.3 in July  2016, some 6.3% above 
the 2008 level. Ins talled capacity utilization for July  2016 was 80.2%, lower than the 81.3% 
recorded for June  2012 and cited in the previous report.114 
4.102.   The Mexican manufacturing sector is characterized by its diversity. In 2015, in terms of 
value added, the main manufacturing  subsector was that of transport equipment (30.6% of the 
total), followed by the food industry (16.7% of the total), the chemical industry (10.7%), the basic 
metal industries (7.3%) and petroleum products (6.4% of the total), as reflected in Table  4.14. 
Between 2011 and 2015 the average annual growth of value added in real terms was 6.8%. The 
most dynamic industries were transport equipment manufacturing and the computer and 
communication equipment industries. The chemical industry and the textile and cloth ing sector 
grew at below -average rates, while the petroleum products industry contracted.  
Table 4.14 Value of the products produced by the manufacturing industry, by subsector 
of economic activity  
(Mex$  billion, at constant 2008 prices)  
Year  Total  Food industry  Beverages and 
tobacco industry  Textile inputs 
and textile 
finishing  Textile 
products, 
other than 
clothing  Clothing  
2010 4,151.3  728,304.3  228,678.0  42,357.0  9,546.4  32,312.5  
2011 4,638.2  804,549.3  248,241.5  47,149.8  10,180.9  34,697.4  
2012 5,125.3  885,316.3  264,507.9  50,032.3  10,687.5  36,925.5  
2013 5,222.8  898,727.8  269,274.1  45,407.4  10,037.6  38,529.8  
2014 5,525.7  913,132.8  286,984.0  44,787.7  11,117.4  38,698.0  
2015 P/  5,771.6  964,072.1  314,976.2  49,724.1  11,849.2  41,070.1  
Year  Leather and 
hide products 
and imitations  Wood industry  Paper industry  Printing and 
related 
industries  Petroleum 
and carbon 
products  Chemical 
industry  
2010 27,614.7  8,339.6  126,288.9  15,781.9  425,757.9  586,326.5  
2011 29,143.2  9,088.2  128,059.5  17,556.8  480,653.6  626,687.8  
2012 31,789.1  10,327.3  138,219.5  17,737.9  556,625.1  639,689.8  
2013 32,526.1  10,993.9  142,874.7  18,636.7  579,205.8  665,543.6  
2014 33,238.7  10,684.0  148,148.1  19,160.1  558,261.8  680,755.8  
2015 P/  37,721.6  11,867.8  162,769.4  21,012.9  368,280.9  626,337.2  
Year  Plastics 
industry  Non-metallic 
mineral 
products  Basic metal 
industries  Metal products  Machinery 
and 
equipment  Computer and 
communication 
equipment  
2010 140,322.0  140,403.7  350,066.5  142,962.1  83,431.8  38,806.2  
2011 158,604.9  149,506.1  410,885.3  153,186.7  96,850.4  43,861.8  
2012 177,634.6  160,125.2  432,115.1  167,744.6  107,234.9  43,426.3  
2013 175,232.4  159,018.7  388,334.5  162,105.9  104,943.4  43,569.2  
2014 188,692.0  169,575.0  420,183.9  177,017.4  105,006. 0 51,896.2  
2015 P/  212,561.6  191,190.8  418,656.4  191,810.6  114,133.7  60,228.3  
Year  Electrical 
equipment  Transport 
equipment  Furniture 
manufacturing  Other manufacturing industries  
2010 126,540.4  855,260.2  18,374.9  23,804.3  
2011 129,335.1  1,016,003.9  18,663.1  25,308.9  
2012 133,131.7  1,214,534.5  20,831.5  26,655.7  
2013 129,844.1  1,300,955.9  20,001.8  27,081.9  
2014 136,597.8  1,484,145.3  19,392.6  28,217.2  
2015 P/  155,687.4  1,765,068.2  21,326.5  31,242.9  
Source:  INEGI and Office of the President of the Repu blic (2016), Anexo Estadístico al Cuarto Informe de 
Gobierno , August, pp. 381 and 382. Viewed at: https://framework -
gb.cdn.gob.mx/cuartoinforme/4IG_ Anexo_Estadistico_TGM_26_08_16_COMPLETO.pdf . 
                                                
114 Data from INEGI . Viewed at:  http://www. inegi.gob.mx . WT/TPR/S/35 2 • Mexico  
 
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  4.103.   The main manufacturing exports are automotive industry products, which account for 
around one third of the total, office and telecommunications equipment, and electrical and 
non-electrical machinery (see Sectio n 1.3). If food and beverages are included, manufacturing 
exports accounted for more than 90% of the total in 2015. Some 80% of manufacturing exports 
go to the United States.  
4.104.   The automotive industry accounted for 3.2% of GDP in 2015. Mexico is the world's 
seventh -ranking vehicle producer, with an output of 3.39  million vehicles in 2015, and was its 
fourth -ranking exporter, with 2.76  million units. In 2014, cumulative foreign direct investment in 
the sector totalled US$4,400  million.115 During the review perio d, the aeronautical sector continued 
to develop. The sector's exports tripled between 2009 and 2014, when they reached 
US$6,366  million. In 2014, the country had 302 aerospace companies and supporting entities, 
located mainly in five  states and providing e mployment for some 45,000 people.116 
4.105.   Tariff protection for manufacturing is relatively low, with an average MFN tariff of 4.6% in 
2016 (WTO definition for non -agricultural products). Mexico maintains unilateral quotas for imports 
of certain manufactured prod ucts, including polyester filament, motor vehicles and toys  
(Table  A3.3).  
4.106.   Despite its importance and successes, the Mexican manufacturing industry continues to 
face a series of challenges, such as achieving a greater diversification of goods and products. 
Although Mexico maintains a network of FTAs, the manufacturing sector still depends to a large 
extent on demand from the United States, the main consumer of Mexican manufactured goods. 
A recent study by the Bank of Mexico found evidence that synchronizatio n between the 
two economies is being maintained and that the correlation between Mexico's manufacturing 
exports to the United States and that country's manufacturing production is high, and even 
increased between 2014 and 2015.117 As far as products are conc erned, despite their diversity, the 
sector's exports continue to depend in good measure on the automotive industry and related 
industries, although in recent years the aeronautical industry has undergone rapid development. 
In the previous report, it was no ted that work on increasing the sector's productivity had been 
recommended as a partial remedy. However, although the overall productivity of the 
manufacturing industry grew between 2010 and 2012, it contracted in 2013 and 2014 (by 0.96% 
and 0.43%, respect ively).118 In addition , in a joint effort between industry, business organizations 
and government, a Catalogue of Industry Suppliers in Mexico (CAPIM) has been produced to 
provide a platform for recording supply requirements for the purpose of achieving an e fficient 
business linkage between potential buyers and industry throughout the country. The  compilation of 
the CAPIM was facilitated by the implementation in 2014 and 2015 of four  initiatives, namely: the 
Automotive Industry Suppliers Development Programme  (PDPA); the Evaluation of the Degree of 
Maturity of the Industry Supply Chain in Mexico (North and West  Section); and the Comprehensive 
Project for Mapping Productive Capacities and the Articulation of the Industry Supply Chain in 
Mexico.  
4.107.   The manufacturin g industry is an important beneficiary of National Foreign Trade Bank 
(Bancomext) programmes. Although companies from all economic sectors may apply for loans 
from Bancomext, the latter has adopted a business model that promotes sectors considered 
strategi c by reason of their substantial contribution to export and foreign currency generation. 
These include various manufacturing industry sectors: transport and logistics, automotive, 
electrical -electronic components, and maquila. At 30  June 2016, the loan por tfolio balances for 
these sectors were Mex$8,948  million, Mex$9,175  million, Mex$4,781  million and 
Mex$24,617  million, respectively. The portfolio balance for the cement industry sector was 
Mex$5,549  million, that for metal products Mex$5,186  million and t hat for food and beverages 
Mex$3,323  million. In 2016, total Bancomext financing under manufacturing in the business 
portfolio was Mex$100,999  million.  
                                                
115 ProMexico (2015), Reporte sobre comercio e inversión , April -June 2015. Viewed at: 
http://www.promexico.mx/documentos/reportes -com-inv/reporte -comercio -inversion -abril-junio-2015.pdf . 
116 Online information from ProMexico . Viewed at: http://mim.promexico.gob.mx . 
117 Bank of Mexico (2015), Compilation of Quarterly Reports Released in 2015 . Box 3: Syncronization of 
the Mexican and U.S. Manufacturing Production . Viewed at:  http://www.banxico .org.mx/publicaciones -y-
discursos/publicaciones/informes -periodicos/anual/%7B2E95603A -807F-5308-402E-1D0CD179C999%7D.pdf . 
118 According to data from INEGI, total manufacturing industry productivity declined at an average 
annual rate of 0.32% between 1991 an d 2014. Online information from INEGI . Viewed at:  
http://www3.inegi.org.mx/sistemas/tabuladosbasicos/LeerArchivo.aspx?ct=46230&c=33687&s=est&f=4 . WT/TPR/S/35 2 • Mexico  
 
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  4.3.2   IMMEX maquila and manufacturing sector  
4.108.   The maquila industry continues to play an important role in Mexic o's manufacturing sector 
and economy. The Manufacturing, Maquila and Export Services Industry (IMMEX) programme 
provides for the temporary importation of goods required for use in an industrial or services 
process involving the manufacturing, processing or  repair of products of foreign origin imported 
temporarily for export (Section 3.4.4).  
4.109.   In 2015, the manufacturers operating under the IMMEX programme reported 
US$145,754  million of income from the foreign market; out of this total, 80.5% corresponded to 
sales of products manufactured with own raw materials, while 19.1% involved maquila, 
sub-maquila or re -manufacturing. On average, the enterprises included in the IMMEX programme 
provided employment for 2.14  million workers during the period 2011 -January to M ay 2016 
(Table  4.15). Income from the foreign market under the IMMEX programme grew by 1.4% year on 
year between 2011 and 2015, accounting on average for 58.8% of the total income received by 
the economic units with IMMEX programmes. The geographical distr ibution and the level of 
concentration in the manufacturing subsectors in which companies with IMMEX programmes 
operate remained stable during the review period. The total number of companies taking 
advantage of the IMMEX programme fell slightly, from 5,09 1 in 2011 to 5,021 in May  2016. During 
the review period, a greater use of imported inputs was also observed: the contribution of 
domestic inputs to the total went from a maximum of 29.8% in 2013 to 24.8% in the period up to 
May 2016,  the decline being mai nly attributable to the rise in inputs imported by the transport 
equipment manufacturing subsector.  
Table 4.15 Structural indicators of the manufacturing companies under the IMMEX 
regime, 2011 -2016  
 2011  2012  2013  2014a 2015a 2016a 
Companies (number)b 5,091  5,118  5,135  5,034  5,022  5,021  
Total income (US$  million)  209,150  224,365  244,664  252,222  241,722  93,938  
Income from the foreign market (%)  56.54  57.68  58.22  59.38  60.30  60.69  
Income from  the domestic market (%)  43.46  42.32  41.78  40.62  39.70  39.31  
Total inputs (US$  million)  189,103  208,274  199,915  242,102  245,545  97,925  
Imported inputs (%)  71.10  69.59  70.12  72.21  73.53  75.16  
Domestic inputs (%)  28.90  30.41  29.88  27.79 26.47  24.84  
Wages and salaries (US$  billion)  12,086  12,404  13,930  14,849  13,767  5,347  
Persons employed (million)a 1.86  1.97  2.10  2.19  2.32  2.39  
a Preliminary figures.  
b Annual averages. The 2016 information corresponds to the average for J anuary to May.  
Source:  INEGI. Estadística de la Industria Manufacturera, Maquiladora y de Servicios de Exportación . 
4.4  Services  
4.4.1   Financial services  
4.110.   Since the previous review in 2012 the Mexican financial system has performed well. 
Growth has been driven mainl y by commercial (multiple) banking, pension fund management firms 
(AFOREs),  the insurance sector and investment funds. As of 30  September  2016, the Mexican 
financial system was composed of some 2,200 entities119: the Bank of Mexico; 47 multiple banks 
(5 in p rocess of starting up); 6  development banks; 48 representative offices of foreign financial 
entities in operation; 93 credit unions in operation; 149 savings and loan cooperative societies 
(Socaps); 101 insurance companies (and 3 in process of authorizatio n); 15 bonding compan ies; 
36 brokerage firms in operation; and 686  investment funds, among others.120 
                                                
119 The number rises to about 5,000 if one includes the entities supervised only in connection with the 
prevention of money laundering and the financing of terrorism. Online information from the National Banking 
and Securities Commission (CNBV) . Viewed at:  http://www.gob.mx/cnbv/acciones -y-programas/sectores -
supervisados?idiom=es . 
120 Among them, 25 leasing companies (converted into multipurpose financial companies (Sofome s)); 
9 foreign exchange brokers in operation; 11 factoring companies (converted into Sofomes); 11 pension fund 
management firms; 19 general bonded warehouses; 14 stock -market intermediary service companies; 
1 community finance company; 43 people's financia l companies; 54 ancillary services companies; 13 rural WT/TPR/S/35 2 • Mexico  
 
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  4.111.    As of 30  June 2016, the total assets of the financial system, which stood at 
Mex$19,732,734  million, had raised the participation of the financial sector t o 103.3% of GDP 
(Table  4.16). The main financial system intermediary is the commercial or multiple banking 
system, whose assets represent more than 40% of GDP. The non -bank financial intermediaries 
(NBFIs) own 37.3% of the assets. The banks and the people' s savings and loan institutions are the 
only financial intermediaries authorized to take deposits from the public.121 
Table 4.16 Financial system indicators, 2012 -2016  
 2012  2013  2014  2015  2016 (June)  
Total ass ets (Mex$  million)  13,556,796  14,520,450  16,076,168  17,758,769  19,732,734  
 (% of total)  
Commercial (multiple) banks  44.4 45.2 43.0 43.8 41.5 
Development banks  8.0 8.6 9.0 8.8 8.3 
NBFIs  41.4 39.9 41.5 40.9 44.2 
Insurers  6.2 6.4 6.5 6.6 5.9 
Total len ding (Mex$  million)  4,601,037  5,052,258  5,599,911  6,356,150  6,698,430  
 (% of total)  
Commercial (multiple) banks  59.9 60.1 59.9 60.5 60.4 
Development banks  10.0 10.7 11.6 11.7 11.7 
NBFIs  30.0 29.2 28.5 27.8 27.9 
Total deposits (Mex$  million)  3,892,05 2 4,209,041  4,732,660  5,361,553  5,704,341  
 (% of total)  
Commercial banks  82.8 81.9 81.2 81.1 81.2 
Development banks  14.6 15.3 16.1 16.2 16.2 
People's savings and loan 
institutions  2.6 2.9 2.8 2.7 2.6 
Note:  NBFIs include: general bonded warehouses, bro kerage firms, foreign exchange brokers, savings and 
loan cooperative societies (Socaps), people's financial companies (Sofipos), regulated multipurpose 
financial companies (Sofomes), credit unions and debt and variable income investment funds, 
promotion fu nds, bonding companies and pension funds. For the year 2012 limited -scope financial 
companies (Sofoles), factoring companies and leasing companies are also included; in July  2013 
these entities were converted into Sofomes. In the June  2016 period the data for insurers, bonding 
companies and pension funds correspond to December  2015.  
Source:  Information provided by the authorities.  
4.112.   The Bank of Mexico (Banxico) and the Ministry of Finance and Public Credit (SHCP) 
regulate and supervise the Mexican financial s ystem. The SHCP supervises the financial system 
through three  commissions: (a) the National Banking and Securities Commission (CNBV), which 
was given additional powers as a result of the financial reform and which regulates and supervises 
various financial  institutions, including commercial (multiple) banks, national credit companies, 
development banks, people's savings and loan institutions122, brokerage firms, investment funds, 
credit unions, promotion entities (public promotion trusts and promotion agencie s) and other 
auxiliary credit institutions and organizations;123 (b) the National Insurance and Bonding 
Commission (CNSF), which regulates and supervises the insurance institutions, the bonding 
                                                                                                                                                  
financial integration  bodies; 10 trust and promotion funds; 3 social service agencies; 16 bank property 
companies; 4  representative offices of foreign brokerage firms in Mexico; 1 national development bank; 
23 financial group holding companies in operation; 2  savings and loan companies; 3 credit information 
companies; 79 investment companies specializing in pension funds in operation; 60 limited -scope financial 
companies (converted into Sofomes); 119 in vestment companies specializing in pension funds; 2 stock and 
derivative contracts markets; 52  regulated multipurpose financial companies; 96 investment fund management 
companies; 6 investment fund share distributors; 2 investment fund share valuers; deriv atives market 
operators; 10 clearing partners; 17 market makers; 29 offshore financial subsidiarie s of credit institutions; 
20 offshore financial subsidiaries of brokerage firms; 554 issuers and 19 branches and agencies of domestic 
credit institutions abro ad. Ministry of Finance and Public Credit (2016), Catálogo del Sistema Financiero 
Mexicano . Viewed at: http://www.gob.mx/shcp/documentos/catalogo -del-sistema -financier o-mexicano . 
121 Bank of Mexico (2015), El sistema financiero mexicano , Cátedra Banco de México , 6 November. 
Viewed at: http://uae.uan.mx/d/f/album_uae/Sistema_Financiero_Mexicano. pdf. 
122 These are the savings and loan cooperative societies (Socaps), people's financial companies 
(Sofipos) and community financial companies (Sofincos).  
123 The other institutions are general bonded warehouses, factoring companies, financial leasing 
compa nies, foreign exchange brokers, financial group holding companies, credit information companies, 
multipurpose financial companies (Sofemes) and representative offices of foreign banks. Online information 
from the CNBV . Viewed at:  http://www.cnbv.gob.mx/Paginas/default.aspx . WT/TPR/S/35 2 • Mexico  
 
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  companies and the insurance, bonding and reinsurance intermediar ies (Section 4.4.1.3) ; 
and (c) the National Pension Fund Commission (CONSAR), which regulates and supervises the 
pension fund managers and the investment companies that specialize in pension funds.  
4.113.   Other bodies that contribute to the sound performance of t he financial system include: 
(a) the Financial System Stability Council (CESF), which monitors the financial system to identify 
risks to financial stability and formulate recommendations to prevent disruptions or minimize their 
impact on the functioning of  the financial system; (b) the National Council for Financial Inclusion 
(CONAIF), which promotes access to and the use of financial products; (c) the National 
Commission for the Protection and Defence of Financial Services Users (CONDUSEF), which 
protects and defends users of financial services; (d) the Institute for the Protection of Bank 
Savings (IPAB); and (e) the Financial Education Committee (CEF), which promotes financial 
education in the responsible use of financial services. Since the financial refo rm of 2014 the 
functioning of the CESF, CONAIF and CEF has been governed by the Law Regulating Financial 
Groups. The reform also broadened the powers of CONDUSEF (see  below).124 
4.114.   With respect to financial system assets, if development banking assets are disre garded, 
46.3% are in intermediaries that form part of various financial groups and 53.7% in ungrouped 
financial intermediaries. The majority of commercial banks, brokerage firms and investment funds 
belong to a financial group, but not so the insurers and auxiliary credit organizations. Financial 
groups must consist of a holding company and at least two of the following financial entities: 
commercial banks, pension fund managers, investment funds, insurers, multipurpose financial 
companies, brokerage firms,  bonding institutions, general bonded warehouses, foreign exchange 
brokers, investment fund management companies, investment fund share distributors and 
people's financial companies. The institutions may be of the same type, but a financial group 
cannot be  formed with only two  multipurpose financial companies. The law does not permit the 
holding company to be the direct owner of shares in a commercial or industrial entity; however, 
the Law Regulating Financial Groups allows the holding company to invest in property development 
companies and service providers. Holding companies must be owners of more than 50% of each of 
the members of the financial group. These companies may not acquire liabilities, unless authorized 
by the Bank of Mexico, and their sole func tion is to hold shares.  
4.115.   It is the SHCP that authorizes the formation and operation of financial groups. The 
authorizations are granted or refused at the discretion of the SHCP, after hearing the opinion of 
Banxico and, where appropriate, with reference to the members of the financial group it is 
intended to organize, the CNBV, the National Insurance and Bonding Commission (CNSF) or 
CONSAR. The financial group's holding company is supervised by the commission that regulates 
the group's preponderant financial  entity, that is to say it may be regulated by the CNBV, by the 
CNSF or by CONSAR. To this end, the SHCP is empowered to determine, for each financial group, 
which is the Supervisory Commission, for which purpose it takes into account, among other 
factors,  the net worth of the entities concerned.  
4.4.1.1   Financial reform  
4.116.   During the review period, Mexico carried out a reform of the financial sector with a view to 
enabling financial intermediation to make a greater contribution to economic growth. Estimates 
indicate that the levels of consumption and investment generated by the reform could raise GDP 
by half a percentage point between now and 2018.125 
4.117.   The premise of the reform is to ensure greater access to bank credit at a lower cost. When 
the reform was implemented in  2014, the level of lending by the Mexican banking system to the 
private sector (businesses, consumption and housing) was relatively low. This was reflected in the 
credit penetration index, which was 25.7% of GDP (at the end of 2012), this being "less than  half 
the average of 55.2% for Latin America and (…) far below the average penetration of 147.1% in 
                                                
124 National Council for Financial Inclusion (2014), Reporte de Inclusión Financiera . Viewed at:  
http://www.cnbv.gob.mx/Inclusi%C3%B3n/Documents/Reportes%20de%20IF/Reporte%20de%20Inclusion%2
0Financiera%206.pdf . 
125 Online information from the Ministry of Foreign Affairs . Viewed at:  
http://consulmex.sre.gob.mx/montreal/images/Consulado/Comunicado/reforma%20financiera.pdf . WT/TPR/S/35 2 • Mexico  
 
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  the OECD".126 The financial reform proposes to raise the credit penetration index for the private 
sector to 40% of GDP.127 According to the authorities, private  sector financing as a proportion of 
GDP rose from 25.7% to 32.3% between December  2012 and June  2016. At the same time, the 
rate of growth of the banking system's current private sector portfolio was 1.8 times the growth of 
GDP in December  2012, whereas i t was 5.3 times in July  2016.  
4.118.   To achieve higher credit levels, the financial reform is focusing on: (1)  increasing 
competition; (2)  promoting credit granted by the development banks; (3)  promoting expansion of 
the credit granted by commercial banking; (4)  making the financial system sounder and more 
prudent; and (5)  making the performance of the financial institutions more efficient 
(Table  4.17).128 In order to introduce measures appropriate for achieving the objectives laid down, 
more than 30 pieces of legis lation have been revised and two new laws regulating financial groups 
and insurance and bonding institutions have been enacted.129 
Table 4.17 The pillars of the financial reform of 2014  
 Some of the principal me asures adopted  
Competition  Tied sales have been prohibited (the purchase of one financial product cannot be made conditional 
on the purchase of another)  
Mortgages may be transferred without additional costs being incurred, for example, notarial or 
property registration costs  
Payroll and deposit accounts may be transferred (the receiving bank is responsible for processing 
the transfer)  
The terms and conditions on which the means of payment market operates have been regulated so 
as to increase the num ber of participants and reduce the commissions on the use of credit cards 
paid by businesses and customers  
People's savings and loan institutions are permitted to engage correspondents, that is, third parties 
that offer financial services to the institut ions' customers, on their behalf and for their account, 
which makes it possible to increase the penetration of the services among the population (prior to 
2014 only the engagement of banking correspondents was permitted)  
The powers of the National Commis sion for the Protection and Defence of Financial Services Users 
(CONDUSEF) have been strengthened and it can now order the removal of abusive clauses from 
contracts and sanction tied sales. Moreover, CONDUSEF has established a new information service 
(Financial Entities Bureau) and a new arbitration system  
The Federal Economic Competition Commission (COFECE) was entrusted with a study as result of 
which 36 recommendations for improving competition in the financial sector have been issueda 
Development 
banking  The terms of reference of development banking are being redefined to target more lending at 
priority areas (for example, MSMEs, agriculture, infrastructure, innovation)  
Development banking is being given more regulatory flexibility and restriction s on its operations are 
being eliminated, for example, it is being authorized to operate with a deficit  
Commercial 
(multiple) 
banking  The loan guarantee regime is being improved, insolvency procedures are being made more flexible 
and dispute settlement in  specialized courts is being encouraged  
A mechanism for periodically evaluating the performance of commercial (multiple) banking is being 
established. The SHCP is being authorized to evaluate the level of lending by the commercial 
(multiple) banking syst em and to impose the relevant measures for more financing to be granted 
(for example, the CNBV can set limits on securities operations on own account)  
Sound and 
prudent 
financial 
system  The Basel III prudential rules are being strengthened: the rules on t he structure and quality of the 
capital of the institutions are being raised to the status of law; and the liquidity coverage ratio is 
being implemented  
A special judicial bank liquidation mechanism is being established for insolvent commercial banks , 
leaving them excluded from "concurso mercantil" (bankruptcy)  
In 2015 the Law on Insurance and Bonding Institutions entered into forceb 
 A self -correction programme is being implemented. Financial entities that detect irregularities in 
their operations ma y take corrective measures and avoid sanctions from the CNBV or Banxico  
The sanctions for violations of the legal provisions have been strengthened and transparency 
improved  (sanctions are being published on the website of the CNBV)  
The National Counci l for Financial Inclusion (CONAIF), the Financial Education Committee and the 
Financial System Stability Council (CESF) are being given legal status  
                                                
126 Seminar on Economic Prospects for 2014 of 10  January  2014. Words of the Minister f or Finance and 
Public Credit. Online information viewed at: 
http://www.hacienda.gob.mx/SALAPRENSA/doc_discurso_funcionarios/secretarioSH CP/2014/lvc_itam_100120
14.pdf . 
127 The credit penetration index is the bank credit granted to the private sector as a percentage of GDP.  
128 Reform Portal of the Government of Mexico. Online information viewed at: 
http://reformas.gob.mx/reforma -financiera/que -es. 
129 For further information see the Decree amending, supplementing, and repealing various financial 
provisions and issuing the Law Regulating Financial Groups (published in the Official Jou rnal of 
10 January  2014) and Financiera Nacional (2014), La Reforma Financiera Comentada . Viewed at:  
http://www.cnbv.gob.mx/Inclusi%C3%B3n/Paginas/Reportes.aspx . WT/TPR/S/35 2 • Mexico  
 
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   Some of the principal me asures adopted  
Performance 
of financial 
institutions  The period for which a stock -market investment promoting limited com pany (SAPIB) remains listed 
on the exchange before becoming a stock -market limited company (SAB) is being extended (from 
three to ten years)  
The investment fund corporate regime is being made more flexible  
The operation of the securities market is bein g made more efficient by establishing measures to 
protect investors  
In 2014, the new Law Regulating Financial Groups was enacted; among other changes with respect 
to the previous legislation the new Law improves the performance of financial group holdin g 
companies and creates the legal concept of a sub -holding companyc 
The regulation of multipurpose financial companies (Sofomes) is being increased  
Financiera Rural is being converted into a new promotion entity, the National Agricultural, Rural, 
Fores try and Fisheries Development Bank (FND)  
a See the recommendations at: https://www.cofece.mx/cofece/index.php/prensa/historico -de-
noticias/trab -inv-recom-sec-fin. 
b The General Law on Insurance Companies and Mutual Institutions of 1935 and the Federal Law on 
Bonding Institutions of 1950 were repealed.  
c The 1990 Law Regulating Financial Groups is being repealed.  
Source:  WTO Secretariat, on the basis of  the Reform Portal of the Government of Me xico. Viewed at: 
http://reformas.gob.mx/reforma -financiera/que -es. 
4.119.   With regard to the credit financing of the business sector, in 2013 (latest data av ailable) 
some 32% of enterprises, mainly in the medium -sized and large classes, had a bank loan. 
According to a COFECE study, in addition to being scarce, bank credit is also expensive.130 
Moreover, in the study COFECE found that, although efforts have been made to modernize the 
regulatory framework of the banking sector, there is still much catching up to be done in the area 
of competition, with the consumers being worst affected. The study points out that there is little 
mobility for users of the services a nd no incentives for financial intermediaries to attract customers 
through better conditions for their products and services. Some of the problems identified include: 
a high concentration of cash dispensers in the larger banks and high commissions for with drawing 
cash; difficulties for the user wishing to transfer his credit products to another institution; little 
transparency and clarity in personal loans tied to commercial banks; and barriers to the entry of 
new competitors. In July  2014, COFECE announced  36 recommendations for improving 
competition in the sector.131 These recommendations seek: (i) to prevent competitors from being 
forced out of the financial markets or their access impeded; (ii) to reduce the risks of coordinated 
anticompetitive action betw een competitors; (iii) to reduce barriers to competition; (iv) to 
eliminate restrictions on the efficient operation of the markets; and (v) to increase effectiveness in 
sanctioning possible violations of the law. The authorities have pointed out that, sinc e the 
publication of COFECE's work, various regulatory bodies have implemented some of the 
recommendations made.  
4.120.   Financial reform is having a positive impact on the trends in credit for the business sector, 
which increased by some 63.7% in nominal terms be tween January  2012 and July  2016. It also 
appears to have had an impact on interest rates, which have fallen as a result (Chart 4.4). 
According to an official evaluation of the financial reform, these indicators confirm its positive 
effect.132 However, a sur vey carried out by Banxico at the end of 2015 noted that although there 
had been an improvement in the conditions of access to bank lending for businesses, interest 
rates, still relatively high, continued to constitute the main obstacle to the use of credi t. Somewhat 
over half of the businesses surveyed also acknowledged that both the conditions of access to and 
the cost of bank credit were limiting, or could limit, their operations.133 
                                                
130 COFECE (2014), Trabajo de investigación y recomendaciones sobre las condiciones de competencia 
en el sector financiero y sus mercados . Viewed at: 
https://www.cofece.mx/cofece/ images/Estudios/COFECE_trabajo_investigacion_prot.pdf . 
131 Statements during the progress report on financial reform of 11  March  2015. Viewed at: 
http://www.gob.mx/cms/uploads/attachment/file/804/intervenciones_avance_reforma_financiera_11032015.p
df. 
132 Online information from the CNBV . Viewed at:  
http://www.cnbv.gob.mx/I nclusión/Paginas/Indicadores.aspx . 
133 Banxico, press release on the quarterly trend in business financing of 19  February  2016. Viewed at: 
http://www.banxico.org.mx/informacion -para-la-prensa/comunicados/sector -financiero/financiamiento -
empresas/indexpage.html . WT/TPR/S/35 2 • Mexico  
 
- 133 - 
 
  Chart 4.4 Credit granted t o businesses, 2012 -2016  
MEX$  million  
012345678
0200,000400,000600,000800,0001,000,0001,200,0001,400,0001,600,0001,800,0002,000,000
Amount of credit granted to businesses by the commercial banking system (MEX$ million)
Implicit interest rate at 12 months%
Financial reform
Source:  Data supplied by the authorities.  
4.121.   The analysis of other indicators also appears to show that the reform has had 
a positive  impact. For example, relative to the situation in 2013, the reform was followed by: 
(a) a three percentage point increase in the penetration of private sector credit, bringing it to 
28.7% of GDP, while domestic financial savings grew by 6.9 percentage points to reach 66% in 
June 2016; (b) an improvement in the financial inclusion indicators134; and (c)  a 44.2% increase in 
the number of mortgage refinancings at the end of 2015.135 
4.4.1.2   Banks  
4.122.   The legal framework for the banking system is the Law on Credit Institutions (LIC) of 
1990, the latest amendment of which was published in the Official Journal of 10 January  2014. The 
secondary regulations issued by the CNBV are the General Provisions Applicable to Credit 
Institutions (known as the Single Banks Circular (CUB)).136 There are no restrictions on foreign 
investment in commercial (multiple) banking, but th e same does not apply to development 
banking where foreign investment is not allowed (Article 6 of the Foreign Investment Law and 
Section  2.4). 
4.123.   Mexico authorizes the commercial presence of banks that are subsidiaries of foreign 
financial institutions, in a ccordance with the provisions of the free trade agreements signed by 
Mexico and the provisions of the LIC. A favourable opinion by Banxico is required for the CNBV to 
authorize the establishment of subsidiaries of foreign commercial banks. The latter must also 
comply with the Rules for the establishment of subsidiaries of foreign financial institutions.137 As 
                                                
134 Online information from the CNBV . Viewed at:  
http://www.cnbv.gob.mx/Inclusión/Paginas/Indicadores.aspx ; and CONAIF (2016), Reporte Nacional de 
Inclusión Financiera . Viewed at: http://www.cnbv.gob.mx/Inclusi%C3%B3n/Pagina s/Reportes.aspx . 
135 Statements during the progress report on financial reform of 11  March  2015. Viewed at: 
http://www.gob.mx/cms/uploads/a ttachment/file/804/intervenciones_avance_reforma_financiera_11032015.p
df. 
136 The CUB is periodically revised and can be viewed at: http://www.cnbv.gob.mx/SE CTORES -
SUPERVISADOS/BANCA -MULTIPLE/Paginas/Normatividad.aspx . 
137 The new Rules published in 2014, which repealed those published in 1994, can be viewed at: 
http://www.dof. gob.mx/nota_detalle.php?codigo=5377897&fecha=31/12/2014 . WT/TPR/S/35 2 • Mexico  
 
- 134 - 
 
  there are no restrictions on the operations of a subsidiary, it can offer the same services and 
products as a domestic multiple bank. Multiple banks tha t are subsidiaries of foreign financial 
institutions are subject to the same regulations as domestic multiple banks. Mexico also permits 
the establishment of representative offices of foreign banks.138 
4.124.   The requirements for setting up and operating as a multi ple bank in Mexico remain 
substantially unchanged since the previous review in 2012. The authorization of the CNBV is 
required, together with a favourable opinion from Banxico. The authorization is non -transferable.  
4.125.   A commercial bank must take the form of a limited company with fixed capital. The 
minimum capital required is 90  million investment units (UDI).139 However, a smaller amount of 
capital, from 36  to 54  million UDI, is required for banks that specialize in a niche market and 
therefore do not engage i n all the operations permitted by the LIC (Box 4.5). There are three kinds 
of niche banks: those which specialize in savings and loan operations, those that provide corporate 
financial services, and those that specialize in issuing credit cards and other m eans of payment.140 
Box 4.5 Niche banking  
Niche banking enables segments that receive little attention from the other commercial banks, such as MSMEs, 
the agricultural sector and rural communities, to gain access to banking products and services that suit their 
needs. However, niche banking has only a small share of the market: it accounts for 1% of total assets, loans 
and deposits. Its expansion is being impeded by regulatory aspects. With the exception of minimum  capital 
requirements, the niche banks are subject to the same regulations as other commercial banks. The CNBV is 
assessing the possibility of introducing a regulatory framework specifically for niche banking.  
Source:  CONAIF (2014), Reporte de Inclusión Financiera . Viewed at: 
http://www.cnbv.gob.mx/Inclusión/Documents/Reportes%20de%20IF/Reporte%20de%20Inclusion
%20Financiera%206.pdf . 
4.126.   The CNBV authorizes mergers between commercial banks subject to a favourable opinion 
from Banxico. It must also consult with COFECE, whose opinion is necessary for authorizing the 
merger (Article 27 of the LIC). Mergers between commercial banks that belon g to financial groups 
are subject to the provisions of the Law Regulating Financial Groups.  
4.127.   The Institute for the Protection of Bank Savings (IPAB) is responsible for bank liquidation. 
Likewise, it implements the judicial bank liquidation mechanism created  by financial reform. In the 
event of any bank having financial problems, the IPAB serves to provide deposit insurance and is 
authorized to cover bank deposits up to a maximum of 400,000  UDI.141 
4.128.   The authorities point out that in 2016, there were 52 multiple banks in operation (there 
were also five banks not yet operating); 16 were subsidiaries of foreign banks and 22 belonged to 
a financial group. Five niche banks were also operating. Between 2012 and 2016, a total of 15 new 
banking sector participants were a uthorized.  
4.129.   The Mexican banking market is characterized by a high level of concentration. In 
July 2016, the five largest banks (CR5) accounted for 70.1% of assets, 71.8% of loans and 75.8% 
of public deposits and controlled 80% of cash dispensers and 85% of bank branches. According to 
the authorities, a decline in concentration has been observed since the reform of the sector was 
implemented. Between December  2013 and July  2016, concentration fell from 72.9% to 71.8% in 
terms of the total portfolio, from 71.4 % to 68.6% in terms of the total business portfolio, and from 
79.5% to 75.8% in terms of total deposits.  
                                                
138 Articles 7 and 45 -A of the LIC.  
139 Investment Units (UDI) are units of value based on the increase in prices and are used to meet the 
obligations arising out of mortgage loans or any commercial act . Banxico publishes the value of the investment 
unit in the Official Journal, in national currency, for each day of the month. The value of a UDI can be viewed 
at: http://www.banxico.org.mx . On 30  September  2016, the value of a UDI was Mex$5.46.  
140 Articles 19 and 46 of the LIC, Article 2 of the CUB, and National Council for Financial Inclusion 
(2014), Reporte de Inclusión Financiera . Viewed at:  
http://www.cnbv.gob.mx/Inclusi%C3%B3n/Paginas/Reportes.aspx . 
141 Online information from the IPAB . Viewed at:  http://www.ipab.org.mx/ipab ; and online information 
from the CNBV . Viewed at:  http://www.cnbv.gob.mx/SECTORES -SUPERVISADOS/BANCA -
MULTIPLE/Paginas/Preguntas -Frecuentes.aspx . WT/TPR/S/35 2 • Mexico  
 
- 135 - 
 
  4.130.   Multiple banking performance was positive between 2012 and 2015 (Table  4.18). Assets 
increased from Mex$6.56  billion in 2013 to Mex$8.07  billion in Jul y 2016, a nominal increase 
of 23%.142 Credit also grew during that period, rising from Mex$3.04  billion in 2013 to 
Mex$4.09  billion in July  2016, which is equivalent to an increase of 34.4% in nominal terms, 
sustained by the measures adopted within the frame work of financial reform (see above).  
Table 4.18 Commercial banking activity indicators, 2012 -2016  
(Mex$  billion and  %) 
 Assets  Deposits  Loans  
Total  Annual 
variation 
(%) Total  Annual 
variation 
(%) Total  Annu al 
variation 
(%) 
2012 6,026  3.8 3,224  8.7 2,758  12.0 
2013 6,556  8.8 3,445  6.9 3,039  10.2 
2014 6,913  5.4 3,841  11.5 3,352  10.3 
2015 7,770  12.4 4,348  13.2 3,843  14.6 
2016 (July)  8,066  6.6 4,567  12.8 4,085  15.0 
Source:  Data provided by the authorities.  
4.131.   As can be seen from Table 4.19, commercial banking has low rates of return and 
NPL ratios and a good level of solvency and liquidity.  
Table 4.19 Commercial banking financial indicators, 2012 -2016  
(Mex$  billion )  
Financial indicators  Dec. 
2012  Dec. 
2013  Dec. 
2014  Dec. 
2015  July 
2016  
 (%) 
Coverage index  185.51  147.64  132.66  140.12  147.70  
Liquidity coverage ratio (LCR)  n/a n/a n/a 325.26  145.17  
Capital adequacy ratio (CAR)  16.0 15.5 15.8 15.0 14.8 
Rates of r eturn       
Return on assets (ROA)  1.46 1.66 1.34 1.32 1.28 
Return on equity (ROE)  13.96  15.39  12.85  12.48  12.24  
Delinquency rate (DR)  2.53 3.36 3.13 2.60 2.42 
n/a Not applicable, since this indicator was introduced in December  2015.  
Source:  Data pr ovided by the authorities.  
4.132.   Mexico applies the Basel III rules, in particular in terms of solvency and liquidity. The 
capital adequacy ratio (CAR), which measures solvency, has always remained above the required 
minimum of 10.5%. In July  2016, the average C AR was 14.8%. In 2015, Banxico and the CNBV 
adopted provisions designed to align the Mexican banking system on the Basel III liquidity 
requirements. This was how the liquidity coverage ratio (LCR) was introduced. The LCR ensures 
that the banks can meet the ir obligations over a period of 30 days.143 The application of the LCR in 
Mexico has been a gradual process, depending on the size of the bank and the years it has been 
operating. In 2016, all the banks were required to comply with a minimum level of LCR, wh ich 
depends on the size of the institution.144 Moreover, in 2016, supplementary requirements 
concerning capital maintenance and countercyclical capital for multiple banks were implemented.  
                                                
142 Ministry of Finance and Public Credit (SHCP), Boletín Estadístico Banca Múltiple , July  2016. Viewed 
at: http://portafolioinfo.cnbv.gob.mx/PortafolioInformacion/BE_BM_201607.pdf . 
143 In accordance with the liquidity coverage ratio (LCR) the ba nks are required to maintain sufficient 
high-quality liquid assets to cover net outflows of cash over a period of 30 days. The LCR must be greater than 
100%, that is to say, the liquid assets at a financial institution's disposal must have a value greater than or 
equal to its potential cash outflows.  
144 Article 96 ( Bis 1) of the LIC, added by publication in the Official Journal of 10  January  2014, General 
provisions on the liquidity requirements for multiple banking institutions (published in the Official Jo urnal of 
31 January  2014; latest amendment published in the Official Journal of 31  January  2015), and CNBV (2015), 
Boletín Regulatorio Nº 1, Primer trimestre 2015 , viewed respectively at: 
http://www.dof.gob.mx/nota_detalle.php?codigo=5377902&fecha=31/12/2014 , 
http://www.cnbv.gob .mx/Resoluciones%20Modificatorias/1a.%20Resoluci%C3%B3n%20Modificatoria%20Req
uerimientos%20de%20Liquidez.pdf , and at: 
http://www.cnbv.gob.mx/CNBV/BoletinRegulacio n/Boletin_Regulatorio_No%201.pdf . WT/TPR/S/35 2 • Mexico  
 
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  4.133.   During the review period, the distribution of the credit granted by c ommercial banking, by 
type, sector or enterprise, was maintained largely unchanged. A substantial part of the lending 
was destined for the business sector and, in particular, for large enterprises. In 2015, businesses 
received 44% of the credit extended by  the financial institutions, of which 76.2% (33.5% of the 
total) was granted to large enterprises; the remaining 23.8% (10.5% of the total) was allocated to 
the MSMEs. However, out of the more than 316,000 businesses with bank loans, 96% were 
MSMEs.145 Also in 2015, some 18% of the credit was allocated for other commercial purposes; 
21% of the total was consumer credit and 17% consisted of housing loans.  
4.134.   In addition to the commercial banks, there are also development banks. These are public 
entities whose bas ic objective is to facilitate access to credit and financial services in specific 
sectors.146 The organic laws of the development banking institutions themselves determine the 
sector served by each. Development banking is subject to the same prudential rules  as commercial 
banking.147 There are six development banks centred on: the business sector (MSMEs in 
particular), public works, foreign trade, housing, the military sector, and savings and loans.148 In 
December  2015, development banking assets amounted to Mex$ 1,547,177  million. The main 
development banks are the National Bank of Public Works and Services (Banobras) and the 
Nacional Financiera (NAFIN), which accounted for 69% of total assets in 2015.149 Within the 
framework of the 2014 financial reform the develop ment banking mandate was revised and its 
operations were made more flexible with a view to its providing a greater volume of lending 
(see above).150 In 2015, the development banks granted loans worth a total of 
Mex$768,615  million.  
4.4.1.3   Insurance  
4.135.   During the revie w period, the legal regime of the insurance and bonding market changed 
as a result of the publication of a new law in 2013. The Law on Insurance and Bonding Institutions 
(LISF) entered into force on 4  April 2015 after a two -year transition period following  its publication 
in the Official Journal to allow for the enactment of the secondary regulations that enabled it to be 
applied in full.151 The Single Circular on Insurance and Bonding, which constitutes the secondary 
regulations, was enacted in 2014.152 The ob jective of the LISF is to strengthen the legal framework 
of the insurance and bonding sectors, especially in relation to solvency, stability and security, in 
order to align it on international standards and best practice. The General Law on Insurance 
Compa nies and Mutual Institutions of 1935 and the Federal Law on Bonding Institutions of 1950 
were repealed.  
4.136.   The LISF seeks to improve the compulsory insurance regime, regulate competition in the 
area of liability insurance, and in general provide more certaint y and transparency for policy 
holders. The LISF introduced reforms to promote more rigorous practices in the insurance sector. 
The three pillars strengthened are: (a) financial solvency: insurers must hold an optimum level of 
capital and reserves to meet t heir obligations; (b) supervision and corporate governance: the 
relations between shareholders, directors and the management of the company must be 
transparent in order to ensure that its activities are soundly and prudently managed; and 
                                                
145 Bank of Mexico (2015), Reporte sobre las condiciones de competencia en el otorgamiento de crédito 
a las pequeñas y medianas empresas , April. Viewed at: http://www.banxico.org.mx/publicaciones -y-
discursos/publicaciones/informes -periodicos/reporte -sobre -las-condiciones -de-compet encia-en-
lo/%7BB0D52028 -C9F4-9410-0DA9 -AA76BD9474AB%7D.pdf . 
146 Article 4 of the LIC. Each development bank has its own organic law.  
147 Online information from the CNBV . Viewed at:  http://www.cnbv.gob.mx/SECTORES -
SUPERVISADOS/BANCA -DE-DESARROLLO/Informacion -Estadistica/Paginas/Banca -de-Desarrollo.aspx , and at: 
http://www.cnbv.gob.mx/SECTORES -SUPERVISADOS/BANCA -DE-DESARROLLO/Preguntas -
Frecuentes/Paginas/Banca -de-Desarrollo.aspx . 
148 CNBV Press Release of 22  March  2016. Viewed at: http://www.cnbv.gob.mx/SECTORES -
SUPERVISADOS/BANCA -DE-DESARROLLO/Boletines -de-Prensa/Paginas/Banca -de-Desarrollo.aspx . 
149 CONAIF (2016), Reporte Nacional de Inclusión Financiera . Viewed at:  
http://www.cnbv.gob.mx/Inclusi%C3%B3n/Paginas/Reportes.aspx . 
150 Article 30 of the LIC; and online information from the CNBV . Viewed at: 
http://www.cnbv.gob.mx/SECTORES -SUPERVISADOS/BANCA -DE-DESARROLLO/Descripcion -del-
Sector/Paginas/default.aspx . 
151 Latest amendment  published in the Official Journal of 10  January  2014.  
152 The Circular is periodically revised and is published online at: 
http://www.cnsf.gob.mx/Normativa/Paginas/Ci rcular -Unica -Seguros -Fianzas.aspx . WT/TPR/S/35 2 • Mexico  
 
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  (c) transparency: the financial accounts must be more widely circulated to permit closer 
monitoring by the regulator, consumers and the rating  agencies.153 
4.137.   In addition to the above, the LISF introduced a series of changes in the Mexican insurance 
regulations, including: the i ntroduction of a surety bond; the possibility for insurance and bonding 
institutions to have internal models for calculating their solvency capital requirement, with account 
for all the risks to which they are exposed, subject to authorization by the CNSF,  but without the 
need for the latter to establish a single rule applicable to all the institutions; and the approval of 
the legal framework applicable to insurance and bonding, including the amendments made to the 
Law on Credit Institutions in 2008 and the  Securities Market Law of 2005. The main effects were 
as follows: (a) the generation of an economic balance; (b) the marking to market of assets and 
liabilities; (c) the calculation of the risk -based solvency capital requirement (SCR); and (d) the 
adoption  of new accounting standards, related with the release of technical reserves and the 
annualization of premiums in life insurance and some branches of casualty insurance, as well as 
with the appraisal surplus or  deficit.  
4.138.   During the review period there was a  change in the regime governing foreign investment 
in the financial sector. Since 2014, it has been possible to have 100% foreign direct investment 
(FDI) in the insurance activity; the law previously limited foreign investment in the sector to 
49%.154 The au thorities point out that this opening -up has facilitated the establishment of new 
insurance companies in the Mexican market.  
4.139.   As in the commercial (multiple) banking sector, Mexico authorizes the commercial 
presence of foreign insurance companies through su bsidiaries and representative offices. 
Authorization from the CNSF is required to set up a subsidiary.155 The CNSF is also responsible for 
authorizing mergers between insurance companies, but must consult with the COFECE, whose 
opinion is necessary for the m erger to be authorized (Articles 271 -272 of the LISF).  
4.140.   Insurance companies and mutuals can operate in one or more branches. However, one and 
the same insurance company or mutual cannot expect to receive authorization to carry out both 
life and casualty ins urance operations (Article 26 of the LISF). Insurance companies currently 
operating in the two branches in Mexico have retained the right to do so under the previous 
legislation. The LISF stipulates that pension insurance derived from the social security l aws forms 
part of life insurance operations.  
4.141.   Insurance services which cover risks that arise in Mexico must be contracted for with 
companies established in the country. The CNSF may give authorization for an insurance policy to 
be taken out with a company located abroad only if the risk cannot be covered in Mexico. Where 
reinsurance contracts concluded with reinsurers located abroad are concerned, the reinsurer must 
be enrolled in the corresponding CNSF register. Only those entities which, in the opinion of  the 
CNSF, meet the requirements of solvency and stability are eligible for registration.  
4.142.   There has been no change in the requirements for establishment and operation in the 
Mexican insurance market since the last review in 2013. Insurance companies need t o be 
authorized by the CNSF and must be established as limited companies with fixed or variable 
capital. The minimum capital requirement depends on the branch: 6,816.974  UDI for life156, 
1,704.243  UDI for accident and sickness, and between 5,112.730  UDI and 33,200  UDI for casualty 
insurance.  
4.143.   The CNSF also regulates and supervises insurance brokers. The CNSF gives authorization 
to operate to those who pass the examination; the authorizations are non -transferable.157 
                                                
153 National Development Financing Programme 2013 -2018. Viewed at:  
http://hacienda.gob.mx/RDC/prog_plan_nacional/pronafide_2013_2018.pdf ; and online information from the 
Government of Mexico . Viewed at:  http://www.gob.mx/shcp/art iculos/palabras -del-secretario -de-hacienda -en-
el-nombramiento -de-la-presidenta -de-la-comision -nacional -de-seguros -y-fianzas . 
154 Article 7 of the Foreign Investment Law (amendment published in the Official Journal of 
10 January  2014).  
155 Articles 74 -85 and 1 08 of the LISF, and Articles 7 and 45 -A of the LIC.  
156 The minimum capital requirement is 28  million UDI for pensions insurance.  
157 Articles 93 -94 of the LISF, and online information from the CNSF . Viewed at:  
http://www.cnsf.gob.mx/PreguntasFrecuentes/Paginas/Agentes.aspx . WT/TPR/S/35 2 • Mexico  
 
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  Foreigners can practise as insurance brokers i n Mexico, but must demonstrate the equivalence of 
the studies they have completed abroad.158 
4.144.   In September  2016 there were 101 insurance companies operating in Mexico, of which 
52 were subsidiaries of foreign enterprises and 49 were domestically owned. Only e ight companies 
belonged to a financial group. On the same date, 24  companies were operating in three branches 
of insurance, 15 in two branches, and the rest in a single branch.159 
4.145.   Since 2012, premiums have increased in value by 25.5%, to Mex$395,083  million 
(some  US$25.5  billion) in 2015. Direct premiums totalled Mex$225,783  million at the end of 
June 2016. Of these, 43.6% corresponded to life insurance, 19.1% to motor vehicle insurance, and 
37.1% to casualty insurance.160 Despite the growth, the penetration ra te for insurance remains 
low.161 Insurance premiums accounted for 2.21% of GDP in 2015, below the average for 
Latin America and the Caribbean, which was 3.09% of GDP in the same year.162 According to the 
COFECE, the low penetration of insurance in the Mexican economy can be attributed to the small 
number of households (4.5%) with an insurance policy and the low level of compulsory insurance 
in the country.163 In 2015, per capita expenditure on insurance was US$198.3.164 
4.146.   There is a high degree of concentration in th e market. In September  2015 the top 
five insurers (CR5) held 44% of total premiums. Life, motor vehicle and health insurance are the 
products with the highest concentration indices, with the CR5 accounting for 69.5%, 64% and 
69.1%, respectively.165 
4.147.   In 2014, following the financial reform, the COFECE carried out a study of competition in 
the financial sector. The report identified some problems in the insurance market and made 
various recommendations, including: (a) creating online platforms for promoting tran sparency and 
making it possible to compare product ranges, prices and policies; (b) generalizing the use of 
standardized policies for basic products; (c)  improving the exchange of insuree claims records; and 
(d) introducing measures that oblige companies t o offer cheaper insurance policies, in particular 
when the insurance is linked to some form of loan (motor vehicle or mortgage, for example).166 
According to the authorities, some recommendations had already been implemented as of 
November  2016.  
4.4.2   Telecommunic ations  
4.148.   During the review period, Mexico undertook a reform of telecommunications services so as 
to enable the sector to make a bigger contribution to growth and economic development. The 
OECD estimates that the telecommunications reform will have a positiv e effect on the Mexican 
economy and could raise GDP by 0.06% between 2016 and 2018.167 Between July  2013 and 
June 2016, the telecommunications sector grew at an average annual rate of 8.4%, or three times 
more than GDP. Moreover, in 2016, telecommunications contributed 3.4% of GDP, 0.5 percentage 
                                                
158 Article 10 of the Regulations on insurance and bond brokers of 2001.  
159 Online information from the CNSF . Viewed at:  
http://www.cnsf.gob.mx/Difusion/SintesisCoyuntura/Paginas/Sector_Asegurador.aspx . 
160 Online information viewed at: 
http://www.cnsf.gob.mx/Difusion/SintesisCoyuntura/Paginas/Sector_Asegurador.aspx . 
161 The penetration rate is premiums as a percentage of GDP (National Council for Financial Inclusion 
(2014), Reporte de Inclusión Financiera . Viewed at:  
http://www.cnbv.gob.mx/Inclusi%C3%B3n/Paginas/Reportes.aspx . 
162 Swiss Re (2016), World Insurance in 2015: Steady Growth Amid Regional Disparities , Sigma 
No. 3/2016. Viewed at: http://media.swissre.com/documents/sigma_3_2016_en.pdf . 
163 COFECE (2014), Trabajo de investigación y recomendaciones sobre las condiciones de competencia 
en el sector financiero y sus mercados . Viewed at: 
https://www.cofece.mx/cofece/images/Estudios/COFECE_trabajo_investigacion_prot.pdf . 
164 Swiss Re (2016), World Insurance in 2015: Steady Growth Amid Regional Disp arities , Sigma 
No. 3/2016. Viewed at: http://media.swissre.com/documents/sigma_3_2016_en.pdf . 
165 CNSF (2015), Boletín de Análisis Sectorial Seguros y Fianzas: cifras de septiembre de 2015 , 
December. Viewed at: http://www.cnsf.gob.mx/Difusion/Paginas/BoletinSectorial.aspx . 
166 Online information from the COFECE . Viewed at:  
https://www.cofece.mx/cofece/index.php/prensa/historico -de-noticias/trab -inv-recom -sec-fin. 
167 OECD (2015), OECD Economic Studies: Mexico , January. Viewed at: 
http://www.oecd.org/economy/surveys/Mexico -Overview -2015%20Spanish.pdf . WT/TPR/S/35 2 • Mexico  
 
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  points above its 2012 contribution and 0.4 percentage points more than in 2013, the year in which 
the constitutional reform of telecommunications and broadcasting was published.  
4.149.   According to the Mexican authorities, in 2013 Mexico's telecommunications sector was 
characterized by a lack of investment, low levels of penetration, poor quality and coverage, and 
high costs.168 In the same year, to promote competition and improve access to services (cost, 
quality and coverage ), Mexico began the reform of the sector.169 To this end, in 2013 the 
Constitution was amended in order to: (a) guarantee the right of access to telecommunications 
services, recognize their public interest and guarantee the rights of users; (b) create the Fe deral 
Telecommunications Institute (IFT) as the sector's autonomous regulatory and supervisory body 
and authority in the area of economic competition; (c) establish courts that specialize in 
telecommunications; and (d) expand the fibre -optic backbone netwo rk, create a shared wholesale 
network, and narrow the digital gap.170 
4.150.   As part of the reforms, in 2014, the Federal Telecommunications and Broadcasting Law 
(LFTR) was enacted; this repealed the Federal Telecommunications Law of 1995.171 According to 
the authori ties, the IFT is empowered to regulate the law and therefore the Executive Branch has 
not issued any regulations for the LFTR. So far, the Institute has regulated certain aspects of the 
LFT by means of guidelines. Since its enactment, the LFTR has been ame nded twice, most recently 
on 1 June 2016.  
4.151.   The LFTR regulates the use, development and exploitation of the radio -frequency 
spectrum; the public telecommunications networks; access to the infrastructure; orbital resources 
and satellite communications; the pr ovision of public telecommunications and broadcasting 
services of general interest; convergence of services172; the rights of users and audiences; and the 
competition process and free competition, which before the reform was regulated by the Federal 
Law on E conomic Competition. The Law introduces a single concession regime for the provision of 
services.  
4.152.   Another of the measures adopted to implement the reform was the amendment of the 
Foreign Investment Law. Since the reform, in 2014, FDI in the telecommunicati ons sector has 
been allowed to reach 100%; previously there was a ceiling of 49% for fixed telecommunications 
services and satellite communications services (Section  2.4).173 Foreign companies must be 
established in Mexico in order to operate in the telecomm unications market. The opening -up to 
foreign investment has resulted in the entry of new operators into the market and the 
implementation of several investment projects.174 The authorities note that, in the second quarter 
of 2016, US$90  million of FDI in the  telecommunications sector was recorded.  
4.153.   The main objective of telecommunications policy is to guarantee quality services at the 
lowest possible cost. The policy also emphasizes the expansion of broadband Internet services 
                                                
168 National Infrastructure Programme 2014 -2018. Viewed at: 
http://cdn.presidencia.gob.mx/pni/programa -nacional -de-infraestructura -2014-2018.pdf?v=1 . 
169 Reform Portal of the Government of Mexico. Viewed at: http://reformas.gob.mx/reforma -en-materia -
de-telecomunicaciones/que -es. 
170 Articles 6 -7, 27-28, 73, 78, 94 and 105 of the Constitution (amendment published in the Official 
Journal of 11  June 2013) and transitional articles of the Decree amending and s upplementing various 
provisions of Articles  6, 7, 27, 28, 73, 78, 94 and 105 of the Political Constitution of the United Mexican States 
in the area of telecommunications . 
171 Federal Telecommunications and Broadcasting Law of 2014 (published in the Official Journal of 
14 July 2014; latest amendment published in the Official Journal of 1  June 2016). The LFTR also repealed the 
Federal Radio and Television Law.  
172 The provision of convergent services is the possibility of offering different services (voice, data,  
video) over the same network (fixed or mobile).  
173 The foreign direct investment regime relating to broadcasting was also amended for the purpose of 
authorizing foreign investment up to 49%; however, authorization is subject to the principle of reciprocity . 
Prior to 2014 broadcasting was an activity reserved exclusively for Mexican enterprises. Articles  6-7 of the 
Foreign Investment Law (amendment published in the Official Journal of 14  July 2014).  
174 Online information from the SCT . Viewed at:  http://www.sct.gob.mx/despliega -noticias/article/la -
reforma -de-telecomunicaciones -atrae-inversion -extranjera -directa-sin-precedentes -al-sector ; and online 
information from the Government of Mexico . Viewed at:  http://www.gob.mx/sct/articulos/el -impacto -
economico -de-la-reforma -de-telecomunicaciones . WT/TPR/S/35 2 • Mexico  
 
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  through the development of the fi bre-optic network, in order to offer higher -quality data 
transmission, and the establishment of a shared wholesale network.175 
4.154.   The institutions operating in the sector are the Ministry of Communications and Transport 
(SCT), which formulates and implements te lecommunications policy, and the Federal 
Telecommunications Institute (IFT), which regulates the sector. The IFT replaced the Federal 
Telecommunications Commission (COFETEL) as the sector's regulatory body in 2013. The IFT is 
also responsible for seeing to  it that there is competition in the sector, thus performing the same 
functions as performed by the Federal Economic Competition Commission (COFECE) in the rest of 
the economy (Section 3.3.2).176 The IFT is also responsible for establishing the technical pro visions 
for the sector (Section 3.1.8).  
4.155.   As the entity charged with enforcing the provisions of the competition law in the sector and 
under the powers conferred on it by the Constitution, the IFT can impose asymmetrical regulatory 
measures on operators wit h a market share of more than 50% in the telecommunications and 
broadcasting segments in which they operate. Among other things, the IFT can limit the frequency 
concentration, regulate the concession process and cross ownership, and order the divestiture o f 
assets. If the Institute considers that the operator is engaging in a monopolistic practice as a 
result of its behaviour, it may initiate an investigation under its Investigating Authority.  
4.156.   The IFT is also authorized to determine the existence of dominan t economic operators 
(DEOs), that is, operators with a more than a 50% share in the provision of telecommunications or 
broadcasting services. The market share is measured by means of different variables, for example, 
the number of users or the network traf fic. If the IFT finds that a DEO exists, it is empowered to 
impose specific requirements in order to guarantee competition in the market, such as the 
regulation of interconnection tariffs and/or the obligation to share its passive infrastructure with all 
operators.177 The IFT is also authorized to determine whether, in some segment of the 
telecommunications market, economic operators with substantial market power are operating and 
impose on them measures calculated to ensure competition, for example, in the a rea of tariffs or 
product range.178 
4.157.   Once a year, the operators are required to submit their shareholding structure to the IFT. 
The Institute must approve any purchase of shares that involves the control of more than 10% of 
the equity. To promote competition,  if a DEO is operating in the sector, the other operators are not 
required to obtain authorization from the IFT to purchase shares or transfer concessions, even if 
this means a change in control. However, they do have to notify the IFT of the transaction.  
4.158.   IFT resolutions may be challenged only by means of indirect amparo  proceedings and will 
not be subject to suspension. The constitutional reform of 2013 led to the creation and 
establishment of courts that specialize in telecommunications and broadcasting.179 
4.159.   In addition to increased competition, another of the objectives of the reform is to increase 
coverage of the services. It is also intended to extend access to the Internet, for which purpose 
several programmes have been implemented or are in process of im plementation: (a)  México 
Conectado (Connected Mexico), which offers free Internet access in public places; (b) the 
Universal Digital Inclusion Policy; and (c) the National Digital Strategy. It is also planned to carry 
out telecommunications services expans ion projects in the wholesale market, for example: the 
development of a fibre -optic backbone network and the creation of a shared wholesale network for 
mobile telecommunications services, to be used by the operators. Prior to the reform, the Federal 
Electr icity Commission (CFE) was responsible for the development of the backbone network. As 
                                                
175 National Development Plan 2013 -2018 and Sectoral Communications and Transport Programme 
2013-2018.  Viewed at: http://pnd.gob.mx . 
176 Article 28 of the Constitution (amendment published  in the Official Journal of 11  June 2013) and 
Article 7 of the LFTR.  
177 Transitional Article 8 of the Decree amending and supplementing various provisions of Articles  6, 7, 
27, 28, 73, 78, 94 and 105 of the Political Constitution of the United Mexican State s in the area of 
telecommunications, and Articles  262, 267 and 269 of the LFTR.  
178 Articles 279 -280 and 282 of the LFTR.  
179 Articles 28 and 94 of the Constitution, and Reform Portal of the Government of Mexico . Viewed at:  
http://reformas.gob.mx/reforma -en-materia -de-telecomunicaciones/que -es. WT/TPR/S/35 2 • Mexico  
 
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  from 2016, this network has been administered and operated by Telecomm, a public entity.180 At 
present, each operator has its own network, which it has to maintain, and ca n sell capacity to 
other operators; however, these networks do not cover the entire country. It is considered that 
having a shared wholesale network would reduce investment costs and improve coverage. The 
authorities note that DEOs will have to meet requir ements in order to gain access to the shared 
wholesale network. This network will be administered by a single company, which will be selected 
by open tender and charged with operating and administering the radio -frequency spectrum and 
offering services to operators which sell services to the end consumers. This company was to have 
been selected in 2014 and be in operation by 2018.181 However, the SCT began the international 
tender process in 2016, with a decision expected in November  2016.  
4.160.   Consumers have alre ady noticed the benefits of the reform, insofar as telephone tariffs 
have decreased. This is mainly owing to the elimination of the charges for domestic long -distance 
calls and the fall in interconnection tariffs (Articles 118 and 131 of the LFTR). Likewis e, certain 
additional costs have been reduced or eliminated; thus, a DEO cannot impose roaming charges.182 
According to the authorities, it has been calculated that the elimination of the charges for domestic 
long-distance calls has saved consumers Mex$24,60 0 million a year. According to the IFT, tariffs 
fell by 24.3% between the third quarter of 2013 and the second quarter of 2016. The biggest fall 
was in international long -distance tariffs ( -40.3%), due to the fact that the call packages being 
offered by th e operators include a specific number of free minutes for calling abroad plus the fact 
that the charges per minute have been reduced. Mobile telephone tariffs also fell (by 36.5%) over 
the same period.183 However , not all telecommunications services saw thei r prices reduced; for 
example, the prices of Internet services increased by 0.8%, which can be attributed to 
improvements in connection speed.  
4.161.   Consumer rights have also been strengthened thanks to the reform. For example, 
consumers can now switch operator (fixed or mobile) within a maximum of 24 hours; receive 
rebates or discounts for service breakdowns; and maintain the balance on their prepayment cards 
for a year (instead of two months), as well as consult it without cost. Users are entitled to have 
their mobiles unblocked for use with other operators once their contract has ended.184 Likewise, an 
operator cannot amend a contract without the consent of the user, and if the service provider does 
not fulfil its service obligations, then the user is entitled to  cancel the contract. Number portability 
continues to exist for both mobile and fixed telephony.  
4.162.   A concession from the IFT is required to provide public telecommunications services. As a 
result of the reform, the concession system has been simplified. Prev iously, a concession was 
required for each type of service it was wished to offer and operators were obliged to obtain a 
concession for each new type of service. Since 2014, a concession for commercial use confers the 
right to provide the public with any t ype of telecommunications services and to build and operate 
the corresponding networks. Commercial concessions last for up to 30 years and can be renewed. 
Operators can transfer concessions for commercial use with the permission of the IFT.185 
Concessions th at were already in existence when the LFTR entered into force will remain in force 
until they expire, on the terms and conditions granted.  
4.163.   The IFT grants concessions to use bands in the radio -frequency spectrum by public tender. 
Concessions are granted for  a period of 20 years and are renewable. The IFT can authorize the 
                                                
180 Transitional Article 15 of the Decree amending and supplementing various provisions of Articles  6, 7, 
27, 28, 73, 78, 94 and 105 of the Constitution in the area of telecommunications, and online information 
viewed at: http://www.ift.org.mx/comunicacion -y-medios/comunicados -ift/es/el -ift-otorga -telecomm -un-titulo-
de-concesion -de-uso-comercial -con-caracter -de-red-compartida . 
181 Article 140 of the LFTR, transitional Article 16 of the Constitution, and Reform Portal of the  
Government of Mexico . Viewed at:  http://reformas.gob.mx/reforma -en-materia -de-telecomunicaciones/que -es. 
182 Fiftieth Measure, Annex 1 (Mobile Services) of the Resolution determining the DEO in 
telecommunications. Viewed at: http://www.ift.org.mx/sites/default/files/anexo_1_moviles.pdf . 
183 IFT (2015), Las Telecomunicaciones a 3 años de la Reforma Co nstitucional . Viewed at:  
http://www.ift.org.mx/sites/default/files/contenidogeneral/unidad -de-competencia -
economica/a3an iosdelareforma -espanol.pdf ; and IFT (2016), Segundo Informe Trimestral Estadístico 2016 . 
Viewed at:  http://www.ift.org.mx/sites/default/files/contenido general/estadisticas/2ite16 -vf-acc.pdf . 
184 Article 191 of the LFTR, and online information from the Government of Mexico . Viewed at: 
https://www.gob.mx . 
185 Articles 66 -67, 72 and 110 of the LFTR.  WT/TPR/S/35 2 • Mexico  
 
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  exchange of frequency bands for commercial use between operators. The IFT also encourages the 
acquisition of frequency bands in the secondary market (whether by leasing or transfer).186 
4.164.   To op erate in Mexico, virtual mobile network operators (MVNOs) must obtain an 
authorization from the IFT to be able to provide the service and a concession to operate a network. 
MVNOs purchase services or capacity from a concession -holding operator for the purp ose of 
offering services to end users. An MVNO does not have its own network but uses that of the 
concession -holding operator.187 In 2016, the IFT issued guidelines on the marketing of mobile 
services by MVNOs.  
4.165.   All telephone tariffs have to be registered wit h the IFT, but in general are not regulated 
and do not have to be approved. The IFT only regulates and approves the tariffs of the DEOs or 
operators with substantial market power. Operators freely negotiate the terms and tariffs for 
interconnection to the networks; in the event of disagreement, the IFT intervenes and fixes the 
tariffs. DEOs are not authorized to charge interconnection tariffs for calls that other operators 
terminate in their network. According to the authorities, the IFT decides whether or not operators 
with substantial market power can charge termination tariffs.  
4.166.   The number of companies offering fixed and mobile telephony services decreased between 
2012 and 2015. In 2012, there were 25 companies offering fixed telephone services, whereas in  
2015 there were only 13. The number of mobile telephony companies fell as a consequence of a 
merger that took place in 2014, so that in 2015 there remained only three of the four there had 
been in 2012. Moreover, there were five MVNOs offering mobile tele phony services in 2015, 
whereas in 2012 there were no MVNOs operating in the market. Despite the number of companies 
in operation, concentration in the telephony market has been very high. In 2012, the group 
América Móvil, composed of Telmex and Telcel, wa s controlling two thirds of both the fixed and the 
mobile telephony market. The market is still highly concentrated today. In September  2016, the 
two largest operators in each segment of the market (fixed and mobile telephony) were still 
absorbing more tha n 70% (Chart  4.5). The authorities point out that this concentration, as 
measured by the Herfindahl Hirschman Index (HHI), although it continues to be high, has been 
decreasing since 2012, which is attributable to the measures adopted by the IFT to improve  
competition the market.  
4.167.   Following the reform of the sector, in 2014, a new mobile telephony operator (apart from 
the five MVNOs already mentioned), namely AT&T, entered the Mexican market.188 With the 
authorization of the IFT, AT&T bought up two operators, to become the third largest operator in 
the mobile telephony market, even though it only supplies 9% of the market.189 
4.168.   In 2014, the IFT determined that, on the basis of its market share, the group América 
Móvil, to which Telmex -Telnor and Telcel belong and w hich operates in both segments of the 
market, was the DEO in the telecommunications sector and imposed specific measures on it to 
ensure competitive conditions for the rest of the operators.190 According to the corresponding 
resolution, every two years the I FT must analyse the effect of the measures it imposes on the 
markets in which the DEO operates. In 2016, the IFT held a public consultation to assess the 
impact of the measures, in addition to analysing the quarterly compliance reports submitted by the 
DEO.191 As a result of its assessment, the IFT decided, as a preliminary step, to impose new 
measures or modify the existing ones. According to the authorities, the final outcome will become 
known in 2017.  
                                                
186 Articles 75, 104 and 10 6 of the LFTR and Article 28 of the Constitution (amendment published in the 
Official Journal of 11  June 2013).  
187 Article 170 of the LFTR; and online information from the Federal Consumer Protection Agency 
(PROFECO) . Viewed at:  http://www.profeco.gob.mx/encuesta/brujula/bruj_2015/bol308_telefonia_movil.asp . 
188 IFT (2014), Cuarto Informe Trimestral Estadístico 2014 . Viewed at: 
http://www.ift.org.mx/sites/default/files/comunicacion -y-medios/informes/4ite14 -acc-vf.pdf . 
189 IFT (2016), Segundo Informe Trimestral Estadístico 2016 . Viewed at: 
http://www.ift.org.mx/sites/default/files/contenidogeneral/estadisticas/2ite16 -vf-acc.pdf . 
190 For further information about the regulations imposed on the DEO, see online informat ion from 
PROFECO . Viewed at:  http://www.profeco.gob.mx/encuesta/brujula/bruj_2015/bol308_telefonia_movil.asp . 
191 Online information from the IFT . Viewed at:  http://www.ift.org.mx/industria/consultas -
publicas/consulta -publica -de-la-efectividad -en-terminos -de-competencia -de-las-medidas -impuestas -al-agente -
3, and at: http://www.ift.org.mx/registro -publico -de-concesio nes/informes -trimestrales -de-cumplimiento -de-
agentes -economicos -preponderantes . WT/TPR/S/35 2 • Mexico  
 
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  Chart 4.5 Telephony market, 2015  
Grupo 
Televisa
17.5%Fixed telephony by operator
AT&T
9.1%
Telefónica
23.7%Mobile telephony by operator
Other
0.2%Telcel
66.4%
Telmex -Telnor
62.2%OMV 
0.8%Axtel-Avantel -Alestra 
4.3%GTM
6.4%
Total Play 
2.1%Megacable -MCM
5.9%
Maxcom
1.4%Bestphone 5.4%
Cablevisión 4.2%
Cablemás 3.5%
TVI 2.3%
Cablecom 1.6%
Cablevisión Red 0.6%
Virgin Mobile 0.6%
Qbo Cel 0.1%
Other 0.1%
 
Source:  IFT (2016), Segundo Informe Trimestral Estadístico 2016 . Viewed at: 
http://www.ift.org.mx/sites/default/files/conteni dogeneral/estadisticas/2ite16 -vf-acc.pdf . 
4.169.   In 2015, the income of the telecommunications companies amounted to Mex$443  billion 
and investments to Mex$66  billion (Table 4.2 0). The amount of investment increased in 2015 as 
compared with the previous year, ow ing to investment in fixed infrastructure (network expansion 
projects) and new technologies. Starting in 2013, there was a decline in investment in mobile 
telephony infrastructure. Nonetheless, investment is expected to increase as a result of the entry 
of a new operator (AT&T) in 2014 and the expanding use of mobile broadband, which will 
encourage investment in 4G technology.192 
4.170.   The number of telephony and Internet users has increased since 2012 (Table 4.20). 
The number of fixed lines, which had reached 19.4  million, remained relatively stable between 
2012 and 2015, fixed telephony services having been replaced by mobile telephony. The number 
of mobile telephone users reached almost 108  million in 2015, an increase over 2012. According to 
the IFT, the decreas e in subscriptions observed between 2013 and 2014 was due to a 
methodological correction.193 
Table 4.20 Telecommunications services indicators, 2012 -2016 (Q2)  
 2012  2013  2014a 2015a 2016 
(Q2)a 
Income (Mex$  billion)b .. 397  435  443  216  
Investment (Mex$  billion)b .. 61  49  66  .. 
Fixed telephony  .. 27  32  48  .. 
Mobile telephony  .. 34  17  18  .. 
Fixed telecommunications services       
Number of fixed lines (million)c 19.1 19.1 19.2 19.4 19.7 
Penetrat ion (subscriptions/100 inhabitants)c 62 61 60 60 60 
Number of subscriptions for fixed broadband Internet 
services (million)c 13.1 12.4 13.0  14.8  15.4  
Penetration (subscriptions/100 inhabitants)c 43 40 41 45 47 
Fixed telephony traffic (billion minutes )d  100 119 123  123  60  
Mobile telecommunications services       
Number of mobile lines (million)c 100.2  106.7  104.9  107.7  109.5  
Penetration (subscriptions/100 inhabitants)c 86 90 87 89 90 
Number of subscriptions for mobile broadband 
Internet ser vices (million)c 24.5 34.6 51.5 63.9 69.0 
Penetration (subscriptions/100 inhabitants)c 21 29 43 53 56 
                                                
192 IFT (2016), Segundo Informe Trimestral Estadístico 2016 . Viewed at: 
http://www.ift.org.mx/sites/default/files/contenidogeneral/estadisticas/2ite16 -vf-acc.pdf . 
193 IFT (2015), Cuarto Informe Trimestral Estadístico 2015 . Viewed at:  
http://www.ift.org.mx/sites/default/files/informe_trimestral_4q_2015_version_habilitada_para_lector_de_pant
alla_v2_0.pdf ; and IFT (2014), Cuarto Informe Trimestral Estadístico 2014 . Viewed at:  
http://www.ift.org.mx/sites/default/files/comunicacion -y-medios/informes/4ite14 -acc-vf.pdf . WT/TPR/S/35 2 • Mexico  
 
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   2012  2013  2014a 2015a 2016 
(Q2)a 
Mobile telephony traffic (billion minutes)d  135 142 145 142 104 
Mobile broadband traffic (million megabytes)d .. .. .. 266 272 
.. Not available.  
a Preliminary data.  
b  Income and investment data for 2013, 2014 and 2015 are annual cumulative, whereas the income 
data for 2016 are the cumulative data for the first half of the year.  
c The data on the number of lines, subscriptions and penetrations for 2013 , 2014 and 2015 
correspond to the figures at the end of the fourth quarter, while those for 2016 correspond to the 
end of the second quarter.  
d The traffic data for 2013, 2014 and 2015 correspond to the cumulative traffic for the last quarter of 
the year, while the data for 2016 correspond to the cumulative traffic for the second quarter.  
Source:  Information provided by the authorities.  
4.171.   The number of fixed broadband Internet users rose from 13.1  million in 2012 to 
15.4 million in the second quarter of 2016,  which corresponds to an increase in penetration from 
43 subscriptions per 100 inhabitants to 47 subscriptions per 100 inhabitants. Where technology is 
concerned, connections are made mainly by DSL (copper pair cable), cable modem (coaxial cable) 
and optic al fibre; this latter type accounted for six subscriptions per 100 inhabitants in the 
second  quarter of 2016. The use of mobile broadband Internet services increased substantially 
between 2012 and 2015. The number of users rose from 24.5  million in 2012 to 69 million in the 
second  quarter of 2016, with a penetration rate of 56 subscriptions per 100 inhabitants. In 2016 
the use of mobile data was 63% greater than in  2015.  
4.4.3   Transport  
4.4.3.1   Institutional framework  
4.172.   The Ministry of Communications and Transport (SCT) fo rmulates and implements the 
transport policy laid down in the National Development Plan (PND) 2013 -2018 and in the Sectoral 
Communications and Transport Programme (PSCT) 2013 -2018. Moreover, the National 
Infrastructure Programme (PNI)  2014-2018 lists the p rojects required to implement transport 
policy.194 
4.173.   The objectives of Mexican transport policy are to create a transport system that promotes 
the productivity and competitiveness of the rest of the economy and to develop a multimodal 
transport system for prom oting foreign trade. To achieve these objectives more investment is 
needed to provide a suitable infrastructure that makes it possible to guarantee quality services 
throughout the country at reasonable cost.  
4.4.3.2   Air transport and airports  
4.4.3.2.1   Air transport  
4.174.   Air tra nsport is regulated by the Civil Aviation Law of 1995, the Airports Law of 1995 and 
their respective implementing Regulations of 1998 and 2000.195 The Directorate -General of Civil 
Aviation (DGAC) continues to act as the sector's regulatory body.  
4.175.   During the r eview period there were no changes in the FDI regime for the air transport 
sector. Foreign investment is permitted but is subject to certain limits. Foreigners may invest a 
maximum of 25% in airline companies and 49% in airports and the supply of aviation fuel. The 
National Foreign Investment Commission (CNIE) is empowered to authorize investment in airports 
                                                
194 For further details refer to: the National Development Plan; the Sectoral Commu nications and 
Transport Programme 2013 -2018 and the National Infrastructure Programme 2014 -2018. Viewed at: 
http://www.gob.mx/sct . 
195 Latest amendments to the Civil Aviation Law published in the Official Journal of 21  May 2013 and 
26 January  2015. Latest amendments to the Airports Law published in the Official Journal of 26  January  2015.  WT/TPR/S/35 2 • Mexico  
 
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  in excess of 49%; according to the authorities, foreign investments that exceed 49% have been 
authorized.196 
4.176.   Cabotage is prohibited. However, the authori ties indicate that the operation of private 
flights in Mexican territory is authorized under the multiple entry procedure; these flights, being 
private and non -commercial, are not treated as cabotage. Only a Mexican permit holder who 
provides an internatio nal air transport service under the air taxi or charter procedure may 
transport passengers, cargo, mail or a combination thereof embarked at a point abroad between 
two or more points in the national territory. During the review period, there were no change s in 
the requirements for operating in the Mexican air transport market. Permission from the DGAC is 
required to operate international flights. To build, manage and operate airports a concession, 
awarded for 50 years (renewable), is  required.197 
4.177.   All tariffs for air transport services must be registered with the DGAC. International 
transport tariffs must be approved by the DGAC before being registered.198 
4.178.   Mexico has 48 bilateral air transport agreements. Since 2012, some of them have been 
revised. A  revised agre ement with the United States entered into force in 2016 (Table  A4.2).  
4.4.3.2.2   Airports  
4.179.   In Mexico, some airports are operated by the State and others by private consortia; 
however, they are owned by the State. Mexico has 76 airports, of which 35 have been put out o n 
concession. Concessions have been granted to four airport groups. Three of the groups are private 
and operate 34  airports. The fourth group is the Grupo Aeroportuario de la Ciudad de México 
(GACM), a  State -owned enterprise set up to operate Mexico City I nternational Airport (AICM). The 
rest of the airports are managed by a State agency, Airports and Auxiliary Services (ASA), and by 
state and municipal governments. The concession -holder is required to provide directly or, 
if necessary, to contract for airp ort and related services. Contracts signed with service providers 
must be approved by the DGAC.199 
4.180.   The main international airports are AICM and Cancún. In 2015, some 37.5  million 
international passengers arrived in Mexico, 31.4% more than in 2012.200 Since 201 2 international 
air traffic has increased and diversified; although most of the passengers continue to arrive from 
the United States, the number of passengers from other regions (Central and South America and 
Asia) has increased.201 Both the increase in the number of passengers and the diversification of 
their origin are due to the adoption of a more flexible air policy, which has made it possible to 
open up new routes. The period from December  2012 to August  2016 saw the opening of 602 new 
routes to give a t otal of 1,702 (of  which 1,069 are international); in addition, ten airlines 
(two Mexican and eight foreign) began to operate; and the number of seats (places) intended for 
the Mexican market increased from 17  million to 23.3  million. Between 2012 and 2015 the number 
of weekly flights grew by 16.1%.202 
                                                
196 Articles 7 -8 of the Foreign Investment Law.  
197 Article 11 of the Civil Aviation Law and Article 10 of the Airports Law.  
198 Article 42 o f the LAC and Article 69 of the Airports Law.  
199 Articles 54, 56 and 72 of the Airports Law and Article 67 of the Regulations implementing the 
Airports  Law. 
200 DGAC (2016), Estadística Mensual por Aerolínea / Statistics Monthly by air carrier . Viewed at: 
http://www.sct.gob.mx/transporte -y-medicina -preventiva/aeronautica -civil/5 -estadisticas/53 -estadistica -opera
cional -de-aerolineas -air-carrier -operat ional-statistics/estadistica -historica -1992-2015-historical -statistics -1992-
2015/estadistica -mensual -por-aerolinea -statistics -monthly -by-air-carrier . 
201 DGAC (2015), Aviación Mexicana en Cifras 2014 . Viewed at:  
https://www.google.ch/?gfe_rd=cr&ei=IPSaWKyVIobH8Aeb57b4Cg#q=Aviaci%C3%B3n%20Mexicana%20en%
20Cifras%202014 . 
202 SECTUR (2015), Reporte Semestral de Conectividad Aérea en México, se gundo semestre . Viewed at: 
http://www.datatur.sectur.gob.mx/ConectividadAerea/2015 -Rpt-2_Conectividad.pdf ; and information provided 
by the authorities.  WT/TPR/S/35 2 • Mexico  
 
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  4.181.   During 2012 and 2015, investment (public and private) in the airport sector increased, 
rising from Mex$3,419  million to Mex$13,381  million.203 This was mainly due to the construction of 
the new international airpo rt in Mexico City, which will be inaugurated in 2020 and constitutes the 
largest public investment project in the sector since 2012. The new airport should help to reduce 
saturation at the existing airport.204 According to the National Infrastructure Program me 
2014-2018, other airports are or could be operating at the limit of their capacity.  
4.182.   Mexican Air Space Navigation Services (SENEAM), an agency of the SCT, is still the 
exclusive provider of air control and navigation services. Likewise, despite the refor m of 2014, ASA 
continues to be the sole supplier of aviation fuel and is also responsible for fuel storage, 
distribution and marketing. In 2014, following the reform of the energy sector, ASA's monopoly 
was dismantled. Since then, both domestic and foreign  companies have been allowed to supply 
fuel; however, as of October  2016, no company had entered the market. Although some 
companies have requested information from the Regulatory Commission for Energy (CRE) in order 
to apply for authorization, at that tim e ASA was still the only supplier.205 
4.183.   The SCT continues to regulate the tariffs for airport and related services charged by the 
airports on concession to the private sector. The regulated tariffs are: (a) the charge for the use of 
the airport (TUA) paid by t he passengers; (b) the charges for airport services and for renting 
space (for  example, counters) paid by the airline companies; and (c) the access charge paid by 
outside service providers.206 The Ministry of Finance and Public Credit (SHCP) sets the tariffs  for 
airport and related services in public airports.207 
4.184.   The concession -holders allocate landing and/or take -off times according to historic rights 
or by auction.208 The airlines are not allowed to sell landing or take -off slots to each other, but 
these may be  exchanged or transferred.209 In 2015, the Federal Economic Competition 
Commission (COFECE), at its own initiative, began an investigation into possible anticompetitive 
practices in the market for the provision of air transport services that uses Mexico City  
International Airport for its landing and/or take -off procedures.210 In 2016, the COFECE issued 
recommendations and preliminary corrective measures for eliminating the restrictions. In 
November  2016, the COFECE investigation was still ongoing.  
4.185.   Airlines may not acquire more than 5% of the capital of an airport operator and 
vice versa.211 At present, there is no airline that holds a stake in the capital of an airport operator.  
4.186.   There are no incentive programmes in the air transport sector.  
4.4.3.3   Maritime transport and ports  
4.4.3.3.1   Maritime transport  
4.187.   Maritime transport is governed by the Shipping and Maritime Freight Law (LNCM) of 2006, 
the Ports Law of 1993 and their respective implementing Regulations of 2015 and 1994.212 The 
                                                
203 SCT (201 6), Principales Estadísticas del sector comunicaciones y transportes 2015 . Viewed at:  
http://www.sct.gob.mx/fileadmi n/DireccionesGrales/DGP/estadistica/Principales -Estadisticas/Principales -
Estadisticas -2015.pdf . 
204 Online information from the new AICM . Viewed at:  http://www.aeropuerto.gob.mx/index.php ; and 
online in formation from the Mexican  Institute for Competitiveness (IMCO) . Viewed at:  http://imco.org.mx/wp -
content/uploads/2014/08/BOLET%C3%8DN -DE-PRENSA -Aeropuerto.p df. 
205 Online information from ASA . Viewed at:  http://www.asa.gob.mx/es/ASA/Noticias/1745/sintesis -
informativa . 
206 Articles 141 -142 of the Regulations implementing the Airports L aw, and online information from the 
SCT. Viewed at:  http://www.sct.gob.mx/transporte -y-medicina -preventiva/aeronautica -civil/otros/politica -
aeronautica/ponencias -tema-regulacion -economica -de-aeropuertos -esquema -de-tarifas -maximas -
competencia -e-infraestructura . 
207 Higher Audit Office of th e Federation, Chamber of Deputies (2013), Evaluación número 1205 "Política 
pública de regulación y supervisión del sistema aeroportuario". Viewed at: 
http://dof.gob.mx/nota_de talle.php?codigo=5343513&fecha=07/05/2014 . 
208 The historic right consists in giving priority to the airline that occupied the slot in the previous period.  
209 Articles 93 -103 of the Regulations implementing the Airports Law.  
210 See: http://www.dof.gob.mx/nota_detalle.php?codigo=5382063&fecha=16/02/2015 . 
211 Article 29 of the Airports Law.  WT/TPR/S/35 2 • Mexico  
 
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  main legislative change during the review period was  the entry into force, in 2015, of the 
Regulations implementing the LNCM, which repealed its former Regulations.213  
4.188.   The General Coordinating Office for Ports and the Merchant Marine (CGPMM) is the sector's 
regulatory body. The CGPMM is composed of three Dir ectorates -General: Ports; Merchant Marine 
and Development; and Port Administration.  
4.189.   The regime for foreign direct investment in the maritime transport sector remained 
unchanged during the review period. Foreign investment is permitted but is limited to 49%  in 
some services, such as: (a) port operators (Integrated Port Administrations (API)), (b) shipping 
companies engaged in maritime transport in territorial waters and cabotage (except for cruise 
ships, dredgers and port construction/maintenance), (c) port services (towing, mooring and 
lighterage) and related services (supply of fuel). The CNIE may authorize investment in excess of 
49% in shipping companies operating in territorial waters and port services companies; the 
authorities note that foreign investm ent in excess of 49% has been authorized in the activities 
mentioned. Harbour pilots must be Mexican nationals.214 
4.190.   Cabotage is reserved for Mexican shipping companies with Mexican vessels. However, if 
the Mexican shipping companies do not have suitable Mexic an-registered vessels or cannot provide 
the cabotage services, foreign vessels will be given temporary permission to provide them.215 A 
permit is required to provide these services if the shipping company is foreign or if it is a Mexican 
company using foreig n vessels. The permit is valid for three months and can be renewed for a 
maximum of two  years.216 At the end of the two years, the Mexican shipping company must 
register the foreign vessels. If it is found that the foreign vessel has unusually specialized te chnical 
characteristics, the Mexican shipping company will be able to continue using it beyond the end of 
the two -year period (until there is a Mexican vessel with similar technical characteristics). 
According to the authorities, there are foreign shipping  companies currently providing cabotage 
services in Mexico.  
4.191.   Maritime transport in territorial waters is, in principle, subject to the same limitations, 
except where there is reciprocity of treatment on the part of the other country. That is to say, 
foreign  shipping companies (with foreign vessels) whose country of origin applies the principle of 
reciprocity are permitted to transport passengers in territorial waters and to dredge and 
build/maintain ports. To be able to operate in territorial waters foreign shipping companies require 
a navigation permit valid for six years (with one possible extension).  
4.192.   In general, in Mexico, and with the exception of cabotage, maritime transport is governed 
by the principle of reciprocity; accordingly, if this treatment is a ccorded to the Mexican State, 
shipping companies do not require any kind of authorization to provide transport services in 
Mexico. However, foreign shipping companies must have a shipping agent in each port in which 
they operate.  
4.193.   In the first half of 2016 the total volume of maritime freight transported reached 
144 million tonnes, of which 46% was liquid cargo, 31% bulk cargo, 15% containerized cargo and 
8% loose general cargo. During the same period, 38  million tonnes of freight were transported in 
cabotag e operations. In 2015, 91 foreign shipping companies were operating in Mexican ports.  
4.194.   According to the Sectoral Communications and Transport Programme 2013 -2018, the use 
of cabotage should be increased by employing it as an alternative to road transport, s ince that 
would speed up the movement of goods and reduce costs.217 However, the Programme points out 
                                                                                                                                                  
212 Latest amendments to the laws published in the Official Journal of 26  December  2013 and 
23 January  2014. Latest amendments to the Regulations implementing the Port s Law published in the 
Official  Journal of 2  April 2014.  
213 The Regulations repeal seven regulations (transitional Articles 2 to 6). Online information viewed at: 
http://www.sct.gob.mx/despliega -noticias/article/sct -publico -reglamento -de-la-ley-de-navegacion -y-comercio -
maritimos -en-el-dof. 
214 Article 57 of the LNCM.  
215 Articles 40 -41 of the LNCM.  
216 Articles 36, 40 and 42 of the LNCM and Articles 226 and 238 -239 of the Regulations implementing 
the LNCM.  
217 Statistics viewed at: http://www.sct.gob.mx/puertos -y-marina/puertos/estadisticas/anuarios -
puertos . WT/TPR/S/35 2 • Mexico  
 
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  that to develop cabotage, among other things, the port infrastructure would have to be improved 
by providing spaces equipped for this mode of transport.  
4.4.3.3.2   Ports 
4.195.   Mexico's main ports are Altamira and Veracruz on the Gulf of Mexico and Lázaro Cárdenas 
and Manzanillo on the Pacific. In the first half of 2016, some 95% of containerized cargo, 62% of 
bulk agricultural cargo, 32% of bulk mineral cargo and 37% of loose  general cargo was 
transported through these four ports.  
4.196.   According to the National Infrastructure Programme 2014 -2018, owing to increased 
international trade, Mexican ports, in particular the four most important ones, are operating at the 
limit of their ca pacity. The congestion is most apparent in the container terminals, since this is the 
mode of transport that has recorded the biggest increase. Therefore, the National Infrastructure 
Programme includes various investment projects for expanding the capacity  of Mexico's ports 
between now and  2018.  
4.197.   Mexico's ports are owned by the State but may be managed on concession. A concession is 
also required to build and operate ports. Concessions are valid for 50 years and can be 
renewed.218 The Integrated Port Administr ations (API) that build, operate and administer the ports 
may be public or private enterprises. An API can administer and operate one or more ports. In 
2016, there were 26  APIs administering and operating 74  Mexican ports; 25 of them were public 
entities. The only private API is that which operates in the Port of Acapulco.219 
4.198.   Each API is responsible for building and operating the terminals within the port precincts 
and providing port services or contracting them out to private operators. The contracts must be  
approved by the Directorate -General of Ports.220 Harbour pilots, who can only be Mexican 
nationals, are appointed by the Directorate -General of the Merchant Marine.  
4.199.   The Directorate -General of Ports establishes maximum tariffs for the use of the port 
infrast ructure and the provision of port services (for example, mooring, lighterage, pilotage and 
towing) if there are no port options or other modes of transport conducive to "reasonable 
competition" (Article 60 of the Ports Law).221 The maximum tariffs are determ ined on the basis of 
an analysis that takes into account the operating costs and annual administrative expenses, the 
capital costs within the traffic observed in the same year and the prevailing tariffs in the domestic 
and international markets. The COFECE  may decide that tariff regulation is inappropriate given the 
conditions of competition; since 2012, the COFECE has not made any ruling on tariff regulation.  
4.4.3.3.3   Shipbuilding  
4.200.   The National Merchant Marine Development Fund (FONDEMAR), a State institution, was 
established in 2006, to guarantee the loans obtained by shipyards and shipping companies to build 
and modernize their facilities and to buy vessels. The Fund guarantees up to 50% of the amount of 
the loan (or a maximum of US$5  million). These limits may be e xceeded subject to the prior 
authorization of the Directorate -General of the Merchant Marine.222 During the review period, only 
one shipping company benefited from the guarantees offered by the Fund; the amount granted 
was Mex$113.4  million. The purpose of s etting up FONDEMAR was to renew, update and grow the 
Mexican merchant fleet, thereby promoting competitiveness and the development of the ship and 
floating structure building and repair industry.  
4.201.   Likewise, for the purpose of stimulating the activities of t he merchant marine and the 
Mexican shipbuilding industry and thus promoting the use of Mexican vessels, a draft Federal Law 
on strengthening the merchant marine and the Mexican shipbuilding industry is being debated.  
                                                
218 Articles 20 -21, 23 and 38 and transitional Article 7 of the Ports Law.  
219 See: http://www.sct.gob.mx/fileadmin/CGPMM/U_DGP/Sistema_portuario/SPN.pdf . 
220 Articles 20, 40 and 51 of the Ports Law.  
221 Reasonable competition is considered to exist when there  are two or more providers of the same port 
service.  
222 Rules of Operation of the National Merchant Marine Development Fund . Viewed at:  
http://dof.gob.mx/nota_detalle.php?codig o=5269853&fecha=24/09/2012 ; and online information viewed at: 
http://www.sct.gob.mx/despliega -noticias/article/fondo -de-desarrollo -de-la-marina-mercante -mexicana . WT/TPR/S/35 2 • Mexico  
 
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  4.4.4   Tourism  
4.202.   In 2014, according to the Touri sm Satellite Account (TSA), the tourism sector contributed 
8.5% to GDP (latest data available). The activities that generated most value were real estate and 
rental, transport, and restaurant and leisure services. The authorities point out that tourism is 
currently generating nine  million direct and indirect jobs.  
4.203.   According to the barometer of the World Tourism Organization (UNWTO), Mexico was 
among the world's top ten tourist destinations in 2015.223 Between 2012 and 2015 the number of 
international visitors  (tourists and short -stay) arriving in Mexico rose from 76.7  million to 
87.1 million (Table 4.21). This growth can be partly attributed to the air transport policy adopted 
by Mexico, which resulted in an increase in the number of flights bound for Mexico 
(Section  4.4.3.2.1), and to the promotion strategy and the efforts made to diversify and 
strengthen the tourism offer throughout the country. Most of the tourists come from the United 
States, but the number arriving from other regions has also increased.224 In 2015, income from 
tourism amounted to US$17.7  million. Mexico allows 100% foreign direct investment in the 
tourism sector.  
Table 4.21 International tourism indicators, 2012 -2016 (Q3)  
 2012  2013  2014  2015  2016 (Q3)  
Income (US$  million)  12,739  13,949  16,208  17,457  14,474  
Visitors (million)  76.7 78.1 81.0 87.1 69.4 
Tourists  23.4 24.2 29.3 32.1 25.3 
Short -stay  53.3 53.9 51.7 55.0 44.1 
Average spend (US$)  166.0  178.6  200.0  203.5  208.5  
Source:  Information p rovided by the authorities.  
4.204.   The General Law on Tourism (LGT) of 2009 and its implementing Regulations of 2015 
regulate tourism activities in Mexico. The Ministry of Tourism (SECTUR) formulates and manages 
policy in the sector. SECTUR is assisted in its wor k by: (a) the National Tourism Conference, whose 
aim is to harmonize public policy between the different tiers of government (federal, state and 
municipal); (b)  the Executive Commission for Tourism, which settles matters that fall within the 
authority of i ts various dependent bodies such as the Mexican Tourism Promotion Board, the 
Ángeles Verdes (Green Angels) Tourist Services Corporation and the Tourism Competitiveness 
Institute; and (c)  the Tourism Advisory Board, which formulates proposals for promoting tourism. 
The Executive Commission and the Advisory Board are intersectoral bodies; representatives of the 
private sector can participate in these forums, but do not have the right to vote.  
4.205.   The objectives of tourism policy, as listed in the Sectoral Program me for Tourism 
2013-2018, are to strengthen the range of tourism products and promote new products and 
non-traditional tourism. To achieve these objectives, investment in the sector has been increased. 
For example, according to the authorities, the accommo dation available rose from 661,000 rooms 
in 2012 to 737,000 in 2015. Progress has also been made in providing vocational training for the 
sector, to improve the quality of the services offered, and more than 30,000  certificates and 
accreditations have been  issued to providers of tourism services. In addition, tourism products 
have been developed by destination. The Programme reflects the fact that sustainable 
development and social inclusion are important factors that must be taken into account in 
developin g any policy for the tourism sector.  
4.206.   The National Tourism Development Fund (FONATUR) was established for the purpose of 
contributing to the planning, programming, promotion and development of tourism and tourism 
resources, as well as for promoting the fina ncing of private investment. According to the 
authorities, financing is promoted through agreements with development banking, by means of 
which the Fund encourages investment in the sector and offers advice to companies. FONATUR is 
regulated by the Organic  Law of the Federal Government, the Federal Law on Parastatal Bodies 
and the Federal Law on Tourism. FONATUR forms part of the parastatal public sector and has a 
Technical Committee, which studies and approves the programmes of the Trust. The Fund is 
                                                
223 SECTUR statistics. Viewed at: http://www.datatur.sectur.gob.mx/SitePages/RankingOMT.aspx . 
224 SECTUR statistics. Viewed at: http://www.datatur.sectur.gob.mx . WT/TPR/S/35 2 • Mexico  
 
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  attached to SECTUR and operates in conformity with the National Development Plan and the 
National Programme for Tourism.225 
4.207.   Operators in the tourism sector can obtain financing for tourism projects from Bancomext. 
Bancomext has three programmes for this purpose: (i) the Mejora tu Hotel (Improve Your Hotel) 
Programme (loans  for between Mex$60  million and 100,000  million at market rates, with a flexible 
term); (ii)  the Financing Programme for Tourism SMEs (loans for between Mex$35,000 and the 
equivalent of 4  million  UDI226, with a term of up to five years, at prime interest rates); (iii) the 
Tourism Sector Financing Programme for augmenting tourism products and services (loans of 
Mex$3  million at market rates).  
4.208.   Providers of tourism services must be enrolled in SECTUR's  National Tourism Register.  
 
                                                
225 Online information from FONATUR . Viewed at: http://www.fonatur.gob.mx/es/index.asp . 
226 The value of a UDI can be viewed at:  http://www.banxico.org.mx . WT/TPR/S/35 2 • Mexico  
 
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  5  APPENDIX TABLES  
Table A1. 1 Total merchandise exports by HS section, 2012 -2015  
(US$ million and  %) 
 2012  2013  2014  2015  
 (US$ million)  
Total exports  370,847  380,015  397,129  380,772  
IMMEX  243,793  257,375  281,302  283,905  
Non-IMMEX  127,054  122,640  115,827  96,867  
 (% of exports)  
1 - Live animals; animal products  0.8 0.7 0.9 1.0 
2 - Vegetable products  2.8 2.9 3.1 3.4 
08 - Edible fruit and nuts; peel of citrus fruit or melons  1.0 1.1 1.3 1.5 
07 - Edible vegetables and certain roots and tubers  1.3 1.4 1.4 1.5 
3 - Animal or vegetable fats and oils  0.1 0.1 0.1 0.1 
4 - Prepared foodstuffs; beverages, spirits and vinegar; 
tobacco and manufactured tobacco substitutes  2.5 2.8 2.7 2.8 
22 - Beverages, sp irits and vinegar  0.9 1.0 1.0 1.1 
5 - Mineral products  15.5 14.1 11.9 7.2 
27 - Mineral fuels, mineral oils and products of their 
distillation  14.1 12.9 10.6 6.0 
26 - Ores 1.1 1.1 1.1 1.0 
6 - Products of the chemical or allied industries  3.1 3.0 2.8 2.8 
7 - Plastics and articles thereof  2.7 2.8 2.8 2.9 
39 - Plastics and articles thereof  2.0 2.1 2.2 2.2 
8 - Raw hides and skins, leather, furskins and articles  
thereof; saddlery and harness  0.2 0.2 0.2 0.2 
9 - Wood and articles of wood; wood charcoal  0.1 0.1 0.1 0.1 
10 - Pulp of wood or of other fibrous cellulosic material;  
paper and paperboard and articles thereof  0.5 0.5 0.5 0.5 
11 - Textiles and textile articles  1.8 1.8 1.8 1.8 
12 - Footwear, headgear, umbrellas, sun umbrellas,  
walking -sticks, seat -sticks, whips, riding -crops and  
parts thereof; prepared feathers and articles made  
therewith  0.2 0.2 0.2 0.2 
13 - Articles of stone, plaster, cement, asbestos, mica  
or similar materials; ceramic products; glass and glassware  0.9 0.9 0.9 1.0 
14 - Natural or cultured pearls, precious or semi -precious  
stones, precious metals  3.6 2.6 2.0 1.9 
71 - Natural or cultured pearls, precious or semi -precious 
stones  3.6 2.6 2.0 1.9 
15 - Base metals and articles of base metal  4.5 4.4 4.4 4.1 
73 - Articles of iron or steel 1.4 1.5 1.5 1.5 
83 - Miscellaneous articles of base metal  0.5 0.5 0.5 0.6 
16 - Machinery and mechanical appliances; electrical 
equipment; parts thereof  34.7 34.7 35.3 36.8 
84 - Nuclear reactors, boilers, machinery and mechanical 
appliances  14.5 14.2 15.2 15.5 
85 - Electrical machinery and equipment and parts thereof  20.2 20.5 20.2 21.3 
17 - Vehicles, aircraft, vessels and associated transport 
equipment  19.7 21.2 22.9 25.0 
87 - Vehicles other than railway or tramway rolling -stock 18.9 20.3 21.6 23.7 
18 - Optical, photographic, cinematographic, measuring,  
checking or precision instruments and apparatus  3.2 3.4 3.7 4.0 
90 - Optical, photographic, cinematographic, measuring, 
checking, precision, medical or surgical instruments and 
apparatus  3.2 3.4 3.6 4.0 
19 - Arms and ammunition; parts and accessories thereof  0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles  2.6 2.8 3.1 3.4 
94 - Furniture; bedding, mattresses, mattress supports, 
cushions and similar stuffed furnishings  2.0 2.2 2.4 2.6 
21 - Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 
Other  0.6 0.6 0.7 0.9 
Source:  WTO Secretariat estimates, based on data provided by the authorities.  
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  Table A1. 2 IMMEX merchandise exports by HS section, 2012 -2015  
(US$ million and  %) 
 2012  2013  2014  2015  
 (US$ million)  
IMMEX exports  243,793  257,375  281,302  283,905  
 (% of IMMEX exports)  
1 - Live animals; animal products  0.0 0.0 0.0 0.0 
2 - Vegetable products  0.1 0.1 0.1 0.2 
3 - Animal or vegetable fats and  oils 0.0 0.0 0.0 0.0 
4 - Prepared foodstuffs; beverages, spirits and vinegar; tobacco and 
manufactured tobacco substitutes  1.1 1.3 1.1 1.2 
5 - Mineral products  0.2 0.2 0.3 0.1 
6 - Products of the chemical or allied industries  1.5 1.5 1.4 1.3 
7 - Plastics and articles thereof  2.6 2.8 2.6 2.5 
39 - Plastics and articles thereof  2.1 2.2 2.1 2.0 
8 - Raw hides and skins, leather, furskins and articles  
thereof; saddlery and harness  0.2 0.2 0.2 0.2 
9 - Wood and articles of wood; wood charcoal  0.1 0.1 0.1 0.1 
10 - Pulp of wood or of other fibrous cellulosic material;  
paper and paperboard and articles thereof  0.4 0.4 0.4 0.4 
11 - Textiles and textile articles  2.3 2.2 2.1 2.0 
62 - Articles of apparel and clothing accessories, not knitted or 
crocheted  1.1 1.0 0.9 0.9 
61 - Articles of apparel and clothing accessories, knitted or 
crocheted  0.6 0.6 0.5 0.5 
12 - Footwear, headgear, umbrellas, sun umbrellas, walking -sticks, 
seat-sticks, whips, riding -crops and parts thereof; prepared feathers 
and articles made th erewith  0.1 0.1 0.1 0.1 
13 - Articles of stone, plaster, cement, asbestos, mica  
or similar materials; ceramic products; glass and glassware  0.7 0.8 0.7 0.7 
14 - Natural or cultured pearls, precious or semi -precious  
stones, precious metals  1.3 0.9 0.9 0.4 
15 - Base metals and articles of base metal  3.5 3.3 3.3 3.0 
73 - Articles of iron or steel  1.3 1.1 1.3 1.2 
83 - Miscellaneous articles of base metal  0.6 0.6 0.6 0.6 
16 - Machinery and mechanical appliances; electrical equipment; 
parts thereof  48.2 46.9 45.9 45.4 
85 - Electrical machinery and equipment and parts thereof  28.9 28.6 27.0 27.2 
84 - Nuclear reactors, boilers, machinery and mechanical 
appliances  19.3 18.3 18.9 18.3 
17 - Vehicles, aircraft, vessels and associated transport equipment  28.7 30.1 31.1 32.2 
87 - Vehicles other than railway or tramway rolling -stock 27.6 28.9 29.4 30.5 
86 - Railway or tramway locomotives, rolling -stock and parts 
thereof  0.9 1.0 1.3 1.3 
18 - Optical, photographic, cinematographic, measuring,  
checking or precision  instruments and apparatus  4.7 4.9 5.0 5.2 
90 - Optical, photographic, cinematographic, measuring,  
checking or precision instruments and apparatus  4.6 4.8 4.9 5.2 
19 - Arms and ammunition; parts and accessories thereof  0.0 0.0 0.0 0.0 
20 - Miscellaneous  manufactured articles  3.6 3.7 4.0 4.0 
94 - Furniture; bedding, mattresses, mattress supports, cushions 
and similar stuffed furnishings  2.8 2.9 3.2 3.2 
21 - Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 
Other  0.6 0.6 0.7 0.8 
Source:  WTO Secretariat estimates, based on data provided by the authorities.  
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  Table A1. 3 Total merchandise imports by HS section, 2012 -2015  
(US$ million and  %) 
 2012  2013  2014  2015  
 (US$ million)  
Total imports  370,752  381,210  399,977  395,232  
IMMEX  183,818  191,940  204,141  202,177  
Non-IMMEX  186,934  189,271  195,836  193,055  
 (% of imports)  
1 - Live animals; animal products  1.6 1.8 2.0 1.6 
02 - Meat and edible meat offal  1.0 1.0 1.1 1.0 
2 - Vegetable products  3.1 2.7 2.6 2.4 
10 - Cereals 1.5 1.1 1.1 1.0 
12 - Oil seeds and oleaginous fruits; miscellaneous grains, 
seeds and fruit; industrial or medicinal plants; straw and 
fodder  1.0 0.9 0.9 0.7 
3 - Animal or vegetable fats and oils  0.5 0.4 0.3 0.3 
4 - Prepared foodstuffs; beverages, spirits and vinegar; tobacco 
and manufactured tobacco substitutes  1.9 1.9 1.8 1.8 
5 - Mineral products  9.4 9.0 8.6 7.0 
27 - Mineral fuels, mineral oils and products of their 
distillation; bituminous substances; mineral waxes  9.0 8.6 8.3 6.7 
6 - Products  of the chemical or allied industries  7.8 7.7 7.7 7.1 
29 - Organic chemicals  2.6 2.6 2.6 2.0 
30 - Pharmaceutical products  1.3 1.3 1.2 1.2 
38 - Miscellaneous chemical products  1.1 1.2 1.2 1.1 
7 - Plastics and articles thereof  7.1 7.1 7.3 7.3 
39 - Plastics and articles thereof  5.4 5.5 5.6 5.6 
40 - Rubber and articles thereof  1.7 1.6 1.7 1.7 
8 - Raw hides and skins, leather, furskins and articles  
thereof; saddlery and harness  0.4 0.5 0.5 0.5 
9 - Wood and articles of wood; wood charcoal  0.4 0.4 0.4 0.4 
10 - Pulp of wood or of other fibrous cellulosic material;  
paper and paperboard and articles thereof  1.9 1.8 1.8 1.8 
48 - Paper and paperboard; articles of paper pulp, of paper or 
of paperboard  1.4 1.4 1.4 1.4 
11 - Textiles and textile articles  2.5 2.6 2.6 2.7 
12 - Footwear, headgear, umbrellas, sun umbrellas, 
walking -sticks, seat -sticks, whips, riding -crops and parts 
thereof; prepared feathers and articles made therewith  0.3 0.3 0.3 0.3 
13 - Articles of stone, plaster, cement, asbestos, mica  
or simila r materials; ceramic products; glass and glassware  0.7 0.7 0.7 0.7 
14 - Natural or cultured pearls, precious or semi -precious  
stones, precious metals  0.3 0.3 0.3 0.3 
15 - Base metals and articles of base metal  8.7 8.0 8.2 8.3 
72 - Iron and steel  2.7 2.3 2.4 2.4 
73 - Articles of iron or steel  2.3 2.3 2.3 2.4 
16 - Machinery and mechanical appliances; electrical 
equipment; parts thereof  37.3 38.3 37.7 38.7 
85 - Electrical machinery and equipment and parts thereof; 
sound recorders and reproducers, televis ion image and sound 
recorders and reproducers, and parts and accessories of such 
articles  20.9 22.0 21.3 21.6 
84 - Nuclear reactors, boilers, machinery and mechanical 
appliances; parts thereof  16.4 16.4 16.4 17.1 
17 - Vehicles, aircraft, vessels and asso ciated transport 
equipment  9.2 9.2 9.4 9.9 
87 - Vehicles other than railway or tramway rolling -stock, and 
parts and accessories thereof  8.7 8.8 8.9 9.4 
18 - Optical, photographic, cinematographic, measuring,  
checking or precision instruments and apparatu s 3.3 3.4 3.4 3.9 
90 - Optical, photographic, cinematographic, measuring, 
checking, precision, medical or surgical instruments and 
apparatus; parts and accessories thereof  3.2 3.3 3.3 3.8 
19 - Arms and ammunition; parts and accessories thereof  0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles  1.6 1.6 1.7 1.7 
21 - Works of art, collectors' pieces and antiques  0.0 0.0 0.0 0.0 
Other  1.9 2.3 2.7 3.0 
Source:  WTO Secretariat estimates, based on data provided by the authorities.  
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  Table A1. 4 IMMEX merchandise imports by HS section, 2012 -2015  
(US$ million and  %) 
 2012  2013  2014  2015  
 (US$ million)  
IMMEX imports  183,818  191,940  204,141  202,177  
 (% of IMMEX imports)  
1 - Live animals; animal products  0.0 0.1 0.1 0.0 
2 - Vegetable products  0.1 0.1 0.1 0.1 
3 - Animal or vegetable fats and oils  0.0 0.0 0.0 0.0 
4 - Prepared foodstuffs; beverages, spirits and vinegar; tobacco and 
manufactured tobacco substitutes  0.2 0.2 0.2 0.2 
5 - Mineral products  0.8 0.7 0.7 0.5 
6 - Produc ts of the chemical or allied industries  4.0 4.1 3.9 2.6 
29 - Organic chemicals  2.1 2.2 2.1 0.9 
38 - Miscellaneous chemical products  0.4 0.5 0.6 0.6 
7 - Plastics and articles thereof  7.2 7.3 7.3 7.3 
39 - Plastics and articles thereof  5.7 5.7 5.7 5.7 
40 - Rubber and articles thereof  1.5 1.5 1.5 1.6 
8 - Raw hides and skins, leather, furskins and articles  
thereof; saddlery and harness  0.5 0.5 0.5 0.5 
9 - Wood and articles of wood; wood charcoal  0.2 0.2 0.2 0.2 
10 - Pulp of wood or of other fibrous cellu losic material;  
paper and paperboard and articles thereof  1.4 1.5 1.4 1.4 
48 - Paper and paperboard; articles of paper pulp, of paper or of 
paperboard  1.2 1.3 1.3 1.2 
11 - Textiles and textile articles  2.3 2.3 2.2 2.1 
12 - Footwear, headgear, umbrellas,  sun umbrellas, walking -sticks, 
seat-sticks, whips, riding -crops and parts thereof; prepared feathers 
and articles made therewith  0.0 0.0 0.0 0.0 
13 - Articles of stone, plaster, cement, asbestos, mica  
or similar materials; ceramic products; glass and gla ssware  0.5 0.5 0.5 0.5 
14 - Natural or cultured pearls, precious or semi -precious  
stones, precious metals  0.4 0.4 0.4 0.4 
15 - Base metals and articles of base metal  10.4 9.2 9.5 9.2 
73 - Articles of iron or steel  2.8 2.7 2.7 2.8 
72 - Iron and steel  2.9 2.3 2.6 2.4 
76 - Aluminium and articles thereof  2.2 1.6 1.6 1.6 
74 - Copper and articles thereof  1.3 1.2 1.2 1.1 
83 - Miscellaneous articles of base metal  0.8 0.8 0.8 0.8 
16 - Machinery and mechanical appliances; electrical equipment; 
parts thereof  50.1 50.8 49.5 49.7 
85 - Electrical machinery and equipment and parts thereof  32.7 33.7 32.2 31.7 
84 - Nuclear reactors, boilers, machinery and mechanical 
appliances  17.4 17.1 17.3 18.0 
17 - Vehicles, aircraft, vessels and associated transport equipment  13.6 13.2 13.7 14.1 
87 - Vehicles other than railway or tramway rolling -stock 13.1 12.7 13.2 13.5 
18 - Optical, photographic, cinematographic, measuring,  
checking or precision instruments and apparatus  4.2 4.2 4.3 5.2 
90 - Optical, photographic, cinemat ographic, measuring,  
checking or precision instruments and apparatus  4.2 4.2 4.3 5.2 
19 - Arms and ammunition; parts and accessories thereof  0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles  1.1 1.2 1.3 1.4 
21 - Works of art, collectors' pieces a nd antiques  0.0 0.0 0.0 0.0 
Other  2.9 3.4 4.1 4.5 
Source:  WTO Secretariat estimates, based on data provided by the authorities.  
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  Table A1. 5 Total merchandise exports by trading partner, 2012 -2015  
(US$ million and  %) 
Descript ion 2012  2013  2014  2015  
 (US$ million)  
Exports  370,847  380,015  397,129  380,772  
 (% of exports)  
America  88.3 88.6 89.3 89.8 
United States  77.7 78.9 80.3 81.2 
Other America  10.6 9.7 9.1 8.6 
Canada  2.9 2.7 2.7 2.8 
Brazil  1.5 1.4 1.2 1.0 
Colombia  1.5 1.2 1.2 1.0 
Chile 0.6 0.5 0.5 0.5 
Guatemala  0.5 0.5 0.5 0.5 
Peru 0.4 0.5 0.4 0.4 
Argentina  0.5 0.5 0.3 0.4 
Venezuela, Bolivarian Republic of  0.6 0.6 0.4 0.3 
Panama  0.3 0.3 0.2 0.3 
Costa Rica  0.3 0.3 0.3 0.3 
Europe  6.3 5.6 5.6 5.4 
EU(28)  5.9 5.2 5.1 4.8 
Spain  1.9 1.8 1.5 0.9 
Germany  1.2 1.0 0.9 0.9 
France  0.3 0.3 0.4 0.6 
United Kingdom  0.7 0.4 0.5 0.5 
Netherlands  0.5 0.4 0.6 0.5 
EFTA 0.2 0.3 0.4 0.5 
Switzerland  0.2 0.3 0.4 0.5 
Other Europe  0.1 0.1 0.1 0.1 
Turkey  0.1 0.1 0.1 0.1 
Russian Fed eration  0.1 0.1 0.1 0.1 
Africa  0.2 0.2 0.2 0.2 
Middle East  0.3 0.4 0.3 0.3 
Saudi Arabia, Kingdom of  0.0 0.1 0.2 0.1 
United Arab Emirates  0.1 0.1 0.1 0.1 
Asia 4.7 4.8 4.4 4.2 
China  1.5 1.7 1.5 1.3 
Japan  0.7 0.6 0.7 0.8 
Other Asia  2.5 2.5 2.2 2.2 
Korea, Republic of  0.5 0.4 0.5 0.7 
India 0.9 1.0 0.7 0.5 
Australia  0.3 0.3 0.3 0.3 
Hong Kong, China  0.2 0.3 0.3 0.2 
Singapore  0.2 0.2 0.1 0.1 
Thailand  0.1 0.1 0.1 0.1 
Chinese Taipei  0.1 0.1 0.1 0.1 
Other  0.1 0.3 0.0 0.0 
Source:  WTO Secretariat estima tes, based on data from the authorities.  
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  Table A1. 6 Total merchandise imports by trading partner, 2012 -2015  
(US$ million and  %) 
Description  2012  2013  2014  2015  
 (US$ million)  
Imports  370,752  381,210  399,977  395,232  
 (% of imports)  
America  56.6 55.7 55.2 53.0 
United States  50.1 49.3 49.0 47.4 
Other America  6.5 6.4 6.2 5.7 
Canada  2.7 2.6 2.5 2.5 
Brazil  1.2 1.2 1.1 1.2 
Chile 0.4 0.4 0.3 0.4 
Argentina  0.3 0.3 0.3 0.3 
Colombia  0.2 0.2 0.2 0.2 
Peru 0.1 0.2 0.3 0.2 
Costa  Rica 0.9 0.8 0.6 0.1 
Nicaragua  0.0 0.2 0.2 0.1 
Guatemala  0.2 0.1 0.1 0.1 
Honduras  0.1 0.1 0.1 0.1 
Uruguay  0.1 0.1 0.1 0.1 
Trinidad and Tobago  0.0 0.1 0.1 0.1 
Europe  11.6 12.0 11.9 11.7 
EU(28)  11.0 11.3 11.1 11.1 
Germany  3.6 3.5 3.4 3.5 
Italy 1.5 1.5 1.3 1.3 
Spain  1.1 1.1 1.2 1.2 
France  0.9 1.0 0.9 0.9 
Netherlands  1.0 1.1 0.9 0.8 
EFTA 0.5 0.5 0.5 0.5 
Switzerland  0.4 0.5 0.5 0.4 
Other Europe  0.1 0.2 0.2 0.2 
Turkey  0.1 0.1 0.2 0.2 
Commonwealth of Independent States (CIS)a 0.4 0.4 0.4 0.4 
Russian Federation  0.3 0.3 0.4 0.4 
Africa  0.4 0.3 0.3 0.2 
Nigeria  0.0 0.1 0.1 0.1 
Morocco  0.1 0.1 0.1 0.1 
South Africa  0.2 0.1 0.1 0.0 
Middle East  0.5 0.4 0.4 0.3 
Israel  0.2 0.2 0.2 0.2 
Asia 30.5 31.1 31.8 34.3 
China  15.4 16.1 16.6 17.7 
Japan  4.8 4.5 4.4 4.4 
Other Asia  10.4 10.6 10.8 12.2 
Korea, Republic of  3.6 3.5 3.4 3.7 
Malaysia  1.3 1.4 1.6 1.9 
Chinese Taipei  1.7 1.8 1.6 1.7 
Thailand  1.0 1.1 1.1 1.3 
India 0.8 0.8 0.9 1.0 
Source:  WTO Secretariat estimates, based on data from the authorities.  
 
 WT/TPR/S/35 2 • Mexico  
 
- 157 - 
 
 Table A2. 1 Notifications to the WTO, 1  January  2012 to 30  September  2016  
Agreement 
and Article  Requirement  Frequency  Document (most recent 
if submitted regularly)  Date  
Agreement on Agriculture  
Article 18.2, 
ES:1 and 
ES:2 Export subsidies  On an 
annual basis  G/AG/N/MEX/32  1/09/2016  
Article 18.2, 
ES:1 and 
ES:2 Export subsidies  On an 
annual basis  G/AG/N/MEX/27  
G/AG/N/MEX/27/Corr.1  21/07/2014  
05/11/2014  
Article 18.2, 
DS:1 Domestic support  On an 
annual basis  G/AG/N/MEX/31  31/08 /2016  
Article 18.2, 
DS:1 Domestic support  On an 
annual basis  G/AG/N/MEX/28  15/09/2015  
Article 18.2, 
MA:2 Tariff quotas  On an 
annual basis  G/AG/N/MEX/30  30/08/2016  
Article 18.2, 
MA:2  Tariff quotas  On an 
annual basis  G/AG/N/MEX/25  21/07/2014  
G/AG/N/M EX/23  28/09/2012  
Article 18.2, 
MA:5 Special safeguard  On an 
annual basis  G/AG/N/MEX/29  29/08/2016  
Article 18.2, 
MA:5 Special safeguard  On an 
annual basis  G/AG/N/MEX/26  21/07/2014  
G/AG/N/MEX/24  28/09/2012  
Agreement on Rules of Origin  
Article 5 
and A nnex 
II, 
paragraph 4  Modifications to 
preferential rules of 
origin; new 
preferential rules of 
origin  Ad hoc  G/RO/N/114  02/04/2014  
G/RO/N/108  19/09/2013  
Agreement on Import Licensing Procedures  
Articles 5.1, 
5.2 and 5.3  Import licensing 
procedures or  changes 
thereto  Ad hoc  G/LIC/N/2/MEX/6  11/03/2015  
G/LIC/N/2/MEX/5  10/03/2015  
G/LIC/N/2/MEX/4  23/10/2014  
G/LIC/N/2/MEX/3  15/04/2014  
G/LIC/N/2/MEX/2  15/04/2014  
Article 7.3  Replies to the 
questionnaire on 
import licensing 
procedures  On an 
annual basis  G/LIC/N/3/MEX/4  10/10/2013  
Article 
1.4(a)  Publications  Ad hoc  G/LIC/N/1/MEX/5  15/04/2014  
G/LIC/N/1/MEX/4  15/04/2014  
Article 
8.2(b)  Legislation  Once only/  
Ad hoc  G/LIC/N/1/MEX/7  10/03/2015  
G/LIC/N/1/MEX/6  10/03/2015  
G/LIC/N/1/MEX /5 15/04/2014  
G/LIC/N/1/MEX/4  15/04/2014  
Quantitative restrictions  
G/L/59  List of restrictions  Biennial  G/MA/QR/N/MEX/1/Rev.1  
G/MA/QR/N/MEX/1  04/08/2016  
27/07/2016  
Agreement on Implementation of Article VI of the General Agreement on Tariffs and Tra de 1994 
(antidumping)  
Article 16.4  Anti-dumping actions 
(preliminary and final)  Ad hoc  G/ADP/N/290  
G/ADP/N/289  
G/ADP/N/288  
G/ADP/N/287  
G/ADP/N/285  
G/ADP/N/284  
G/ADP/N/283  
G/ADP/N/282  
G/ADP/N/279  22/09/2016  
24/08/2016  
28/07/2016  
23/06/2016  
31/05/2016  
19/04/2016  
24/03/2016  
23/02/2016  
18/01/2016  
Article 16.4  Anti-dumping actions 
(taken within the 
preceding six months)  On a 
semi-annual 
basis  G/ADP/N/290  22/09/2016  
Article 16.5  Competent authorities  Ad hoc  G/ADP/N/14/Add.34; 
G/SCM/N/18/Add.34  12/10/2012  
Article 18.5  Legal texts and 
changes thereto  Ad hoc  G/ADP/N/1/MEX/1/Suppl.5; 
G/SCM/N/1/MEX/1/Suppl.4; 
G/SG/N/1/MEX/1/Suppl.4  13/06/2014  WT/TPR/S/35 2 • Mexico  
 
- 158 - 
 
 Agreement 
and Article  Requirement  Frequency  Document (most recent 
if submitted regularly)  Date  
Agreement on Subsidies and Countervailing Measures  
Article 
25.11  Countervailing 
measures  Ad hoc  G/SCM/N/278  18/09/2014  
Article 
25.11  Countervailing 
measures (taken 
within the preceding 
six months)  On a 
semi-annual 
basis G/SCM/N/305/MEX  
G/SCM/N/298/MEX  
G/SCM/N/298/MEX/Corr.1  02/09/2016  
25/02/2016  
16/06/2016  
Article 
25.12  Competent authorities  Ad hoc  G/ADP/N/14/Add.34; 
G/SCM/N/18/Add.34  12/10/2012  
Article 25.1  Subsidy programmes  On a yearly 
basis  G/SCM/N/284/MEX/Suppl.1  11/11/2015  
G/SCM/N/284/MEX  09/07/2015  
G/SCM/N/253/MEX  03/07/2013  
Agreement on Safeguards  
Withdrawal  Investigation  Once only, 
when 
terminating 
an 
investigation 
with no 
measure 
imposed  G/SG/N/9/MEX/1  12/04/2012  
  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, 
Annex B  Sanitary/phytosanitary 
regulations  Ad hoc  G/SPS/N/MEX/304 – 
G/SPS/N/MEX/43/Add.1  05/09/2016 –
11/01/2013  
Agreement on Technical Barriers to Trade  
Article 2.9  Technical regulations  Ad hoc  G/TBT/N/MEX/326 - 
G/TBT/N/MEX/4/Add.1  26/09/2016 -26/01/2012  
GATT 1994  
Article 
XXIV:7(a)  Regional agreement  Ad hoc  S/CN/864; WT/REG374/N/1  07/06/2016  
S/CN/717/Rev.1; 
WT/REG349/N/1/Rev.1  28/01/2014  
S/CN/717; WT/REG349/N/1  21/01/2014  
WT/REG345/N/1/Add.1  31/07/2014  
WT/REG345/N/1  01/07/2013  
WT/REG198/N/1/Add.4  19/12/2012  
WT/REG198/N/1/Add.3  19/12/2012  
WT/REG198/N/1/Add.2  17/12/2012  
WT/REG126/N/1/Add.6  18/09/2013  
WT/REG126/N/1/Add.5  18/09/2013  
WT/REG126/N/1/Add.4  18/09/2013  
WT/REG126/N/1/Add.3  18/09/2013  
WT/REG126/N/1/Add.2  18/09/2013  
General Agreement on Trade in Services  
Article III:3  Laws/regulations 
(transparenc y; new, or 
changes to, laws, 
regulations or 
administrative 
guidelines which 
significantly affect 
trade in services)  Ad hoc  S/C/N/804  26/03/2015  
Articles 
III:4 and/or 
IV:2 Enquiry points and 
contact points  Ad hoc  S/ENQ/78/Rev.16  22/04/2016  
S/ENQ/78/Re v.13 04/12/2012  
Article 
V:7(a)  Economic integration 
agreement  Ad hoc  S/C/N/864; 
WT/REG374/N/1  07/06/2016  
S/C/N/717/Rev.1; 
WT/REG/349/N/1/Rev.1  28/01/2014  
S/C/N/717; 
WT/REG/349/N/1  21/01/2014  
S/C/N/701  02/07/2013  
LDC 
services 
waiver  
(WT/L/84 7)  Once only  S/C/N/821  21/08/2015  WT/TPR/S/35 2 • Mexico  
 
- 159 - 
 
 Agreement 
and Article  Requirement  Frequency  Document (most recent 
if submitted regularly)  Date  
Intellectual property  
TRIPS 
Article 63.2  Legislation  Once only/  
Ad hoc  IP/C/W/615  
IP/N/1/MEX/13;  
IP/N/1/MEX/G/6  
IP/N/1/MEX/12 
IP/N/1/MEX/I/11  
IP/N/1/MEX/11;  
IP/N/1/MEX/O/1  
IP/N/1/MEX/10;  
IP/N/1/MEX/C/7  
IP/N/1/MEX/9;  
IP/N/1/MEX/C/6  
IP/N/1/MEX/8;  
IP/N/1/MEX/C/5  
IP/N/1/MEX/7;  
IP/N/1/MEX/C/4  
 
IP/N/1/MEX/6;  
IP/N/1/MEX/G/5  
IP/N/1/MEX/5;  
IP/N/1/MEX/G/4  
IP/N/1/MEX/4  
IP/N/1/MEX/3  22/09/2016  
13/09/2016  
 
15/06/2016 – 
 
08/04/2016  
 
08/04/2016  
 
08/04/2016  
 
08/04/2016  
 
08/04/2016  
 
07/04/2016  
 
07/04/2016  
 
26/02/2013  
19/12/2012  
Agreement on Trade Facilitation  
Article 15, 
Section II  Commitments 
designated under 
Category A  Once only  WT/PCTF/N/MEX/1  14/05/2014  
Source:  WTO Secretariat . 
 WT/TPR/S/35 2 • Mexico  
 
- 160 - 
 
  Table A3. 1 Summary of  MFN tariffs, 2016  
 MFN 
Average 
bound tariffa 
(%) No. of 
lines  Average  
(%) Range  
(%) Coefficient 
of variation 
(CV) Description of product  
Total  12,275  5.5 0 - 100 1.6 0 - 254 
HS 01 -24 1,387  15.9 0 - 100 0.9 0 - 254 
HS 25 -97 10,888  4.3 0 - 50 1.6 0 - 156 
By WTO category       
Agricultural products  1,275  14.3 0 - 100 1.1 0 - 254 
 - Animals and animal products  169 24.8 0 - 100 1.1 9 - 254 
 - Dairy products  39 23.6 0 - 50 0.7 18 - 156 
 - Fruit, vegetables and garden produce  370 14.5 0 - 100 0.6 5 - 245 
 - Coffee and tea  31 23.7 0 - 50 0.8 25 - 156 
 - Cereals and cereal preparations  144 10.2 0 - 45 0.8 9 - 194 
 - Oilseeds, fats and oils and their 
products  120 8.4 0 - 45 1.2 0 - 254 
 - Sugar and confectionery  29 40.9 7.5 - 100 0.8 45 - 210.4  
 - Beverages, alcohol and tobacco  90 23.1 0 - 67 0.6 36 - 67.5 
 - Cotton  8 0.0 0 - 0 n.a. 37 - 45 
 - Other agricultural products n.e.s.  275 5.3 0 - 36 1.4 0 - 45 
Non-agricultural products (including 
petroleum)  11,000  4.6 0 - 50 1.5 0 - 156 
 - Non-agricu ltural products (excluding 
petroleum)  10,978  4.6 0 - 50 1.5 0 - 156 
 - - Fish and fish products  251 15.5 0 - 20 0.4 30 - 45 
 - - Mineral products and metals  1,824  3.6 0 - 15 1.7 0 - 50 
 - - Chemicals and photographic products  3,098  1.6 0 - 20 2.1 0 - 156 
 - - Wood, wood pulp, paper and 
furniture  533 4.6 0 - 20 1.2 0 - 50 
 - - Textiles  924 9.2 0 - 25 0.6 10 - 50 
 - - Clothing  354 21.0 20 - 25 0.1 35 - 50 
 - - Leather, rubber, footwear and travel 
articles  352 6.2 0 - 30 1.4 20 - 50 
 - - Non-electrical  machinery  1,485  3.1 0 - 20 1.9 20 - 50 
 - - Electrical machinery  967 2.5 0 - 20 2.1 10 - 50 
 - - Transport equipment  385 7.8 0 - 50 1.5 10 - 50 
 - - Non-agricultural products n.e.s.  805 5.1 0 - 20 1.2 10 - 50 
 - Petroleum  22 0.2 0 - 4 4.6 35 - 50 
By ISIC sectorb      
Agriculture and fishing  608 10.5 0 - 100 0.9 0 - 245 
Mining  126 0.3 0 - 10 5.1 0 - 50 
Manufacturing  11,540  5.3 0 - 100 1.6 0 - 254 
By HS section       
 01 Live animals; animal products  439 18.8 0 - 100 1.0 0 - 254 
 02 Vegetable produ cts 519 11.8 0 - 100 0.8 0 - 245 
 03 Fats and oils  72 10.2 0 - 45 1.0 18 - 254 
 04 Prepared foodstuffs, etc.  357 19.5 0 - 100 0.8 18 - 210.4  
 05 Mineral products  212 0.3 0 - 10 5.3 0 - 50 
 06 Products of the chemical or allied 
industries  2,864  1.4 0 - 20 2.2 0 - 156 
 07 Plastics and rubber  567 3.8 0 - 15 1.4 10 - 50 
 08 Raw hides and skins, and leather  124 4.8 0 - 20 1.8 9 - 35 
 09 Wood and articles of wood  187 6.7 0 - 15 0.9 10 - 35 
 10 Pulp of wood, paper, etc.  311 2.8 0 - 15 1.5 0 - 50 
 11 Texti les and textile articles  1,251  12.2 0 - 25 0.6 9 - 50 
 12 Footwear and headgear  102 14.8 0 - 30 0.6 35 - 35 
 13 Articles of stone  310 5.7 0 - 15 1.2 10 - 50 WT/TPR/S/35 2 • Mexico  
 
- 161 - 
 
   MFN 
Average 
bound tariffa 
(%) No. of 
lines  Average  
(%) Range  
(%) Coefficient 
of variation 
(CV) Description of product  
 14 Precious stones, etc.  65 3.3 0 - 15 1.8 35 - 35 
 15 Base metals and articles of base 
metal  1,268  3.8 0 - 15 1.6 0 - 50 
 16 Machinery and mechanical appliances  2,485  2.8 0 - 20 2.0 10 - 50 
 17 Vehicles, aircraft, vessels and 
associated transport equipment  402 7.6 0 - 50 1.5 10 - 50 
 18 Precision instruments  449 2.7 0 - 15 1.8 10 - 50 
 19 Arms  and ammunition  33 11.2 0 - 15 0.5 35 - 35 
 20 Miscellaneous manufactured articles  244 9.4 0 - 20 0.7 25 - 35 
 21 Works of art, etc.  14 0.0 0 - 0 n.a. 35 - 35 
By stage of processing       
First stage of processing  1,115  8.4 0 - 100 1.1 0 - 245 
Semi-processed products  4,313  3.1 0 - 100 1.9 0 - 210.4  
Fully processed products  6,847  6.6 0 - 100 1.5 0 - 254 
n.a. Not applicable.  
a The bindings are given in HS 07 and the applied rates in HS 12; consequently, there may be 
differences in the number of lines in cluded in the summary.  
b ISIC (Rev.2), excluding electricity (one line).  
Note:  In 2012, the simple average was calculated taking into account the ad valorem  equivalents (AVEs) 
for lines subject to both specific tariffs and compound tariffs. In 2016, the si mple average was 
calculated only taking into account the AVEs for lines subject to specifi c tariffs; compound tariffs 
(44 tariff lines) were not taken into account.  
Source:  WTO Secretariat estimates, based on data provided by the authorities.  WT/TPR/S/35 2 • Mexico  
 
- 162 - 
 
  Table A3. 2 Multilateral tariff quotas and import volume, 2016  
(US$)  
Description (HS)  Applied tariff  Bound MFN 
quota 
volume 
(tonnes)  Import 
volume 
under quota 
2015 
(tonnes)a In-quota  Out-of-quota  
Milk in powder    80,000  45,475  
0402100 1 0% 50%   
04022101  0% 50%   
Cheese, hard and semi -hard   2,405  728 
04061001  50% 45%   
04063001  50% 45%   
04063099  50% 45%   
04069003  50% 45%   
04069005  50% 45%   
04069099  50% 45%   
Coffee; coffee extracts, essences and 
concentrates    20,800  114 
09012101  50% 50% (60 kg sacks)   
09012201  50% 50%   
09019001  50% 50%   
09019099  50% 50%   
21011101  50% 45%  n.a.b 
21011102  50% 45%  n.a.b 
21011199  50% 45%  n.a.b 
21011201  50% 45%  n.a.b 
Meat and edible offal    1,000  n.a.c 
02071403  50% 100%    
02071404 50% 100%    
02071499  50% 100%    
02072601  50% 100%    
02072602  50% 100%    
02072699  50% 100%    
02072703  50% 100%    
02072799  50% 100%    
02074401  50% 45%   
02074599  50% 45%   
02075401  50% 45%   
02075599  50% 45%   
02076099  50% 45%   
Animal fats    2,111  n.a.c 
02091001  50% 45%   
02099001  50% 20%   
02099099  50% 45%   
15011001  50% 45%   
15012001  50% 45%   
15019099  50% 45%   
15161001  50% 45%   
Potatoes, fresh or chilled    1,000  n.a.c 
07019099  50% 100%    
Beans, except for seed    5,000  n.a.b 
07133302  50% 45%   
07133303  50% 45%   
07133399  50% 45%   
Wheat    98,076   
10011101  50% 15%  n.a.c 
10011999  50% 15%  n.a.c 
10019199  50% 15%  n.a.c 
10019999  50% 15%  n.a.c 
10019101  50% 0%  n.a.b 
10019901  50% 0%  n.a.b 
Barley    1,200  n.a.b 
10039001  50% 15%   
10039099  50% 15%   
Maize    10,000  n.a.d 
1005.9003  0% 0%   
1005.9004  0% 20%   
1005.9099  0% 0%   WT/TPR/S/35 2 • Mexico  
 
- 163 - 
 
  Description (HS)  Applied tariff  Bound MFN 
quota 
volume 
(tonnes)  Import 
volume 
under quota 
2015 
(tonnes)a In-quota  Out-of-quota  
Sugar and products with a high sugar 
content    183,800  n.a.c 
17022001  50% 15%   
17023001  50% 15%   
04029901  50% 15% + 
US$0.36/kg of 
sugar    
04029999  50% 20% + 
US$0.36/kg of 
sugar    
18062001  50% 20% + 
US$0.36/kg of 
sugar    
18063201  50% 20% + 
US$0.36/kg of 
sugar    
18069001  50% 20% + 
US$0.36/kg of 
sugar    
18069002  50% 20% + 
US$0.36/kg of 
sugar    
18069099  50% 20% + 
US$0.36/kg of 
sugar    
190190 03 50% 10%   
19019004  50% 10%   
19019005  50% 45%   
19019099  50% 10% + 
US$0.36/kg of 
sugar    
21039099  50% 20%   
21069001  50% 15%   
21069002  50% 15% + 
US$0.36/kg of 
sugar    
22029001  50% 10%   
22029002  50% 20%   
22029003  50% 20%   
22029004  50% 20%   
22029099  50% 20% + 
US$0.36/kg of 
sugar    
a The import volume includes, where applicable, imports under unilateral quotas.  
b Mexico's imports on preferential terms exceed the amount of the WTO -bound quota.  
c Quota not used. Better market access condition s (with respect to the quota) on unilateral terms.  
d Quota not used. Better market access conditions on most -favoured -nation terms.  
Source:  Compiled by the WTO on the basis of information provided by the Ministry of the Economy and 
Schedule LXXVII -Mexico.  WT/TPR/S/35 2 • Mexico  
 
- 164 - 
 
  Table A3. 3 Unilateral tariff quotas applied by Mexico, 2016  
Tariff line  In-quota tariff  Out-of-quota 
tariff  Quota volume 
(tonnes/year)  Volume 
imported 2015  
(tonnes)  
Chicken and turkey cuts      
0207.13.01; 0207.14.01  0 100 100,000  954 
0207.26.01a; 0207.26.99a 
0207.27.01a; 0207.27.99a 
Poultry meat      
0207.11.01; 0207.12.01  0 100 300,000 
(t/2013 -2017)  26,934  
0207.13.03; 0207.13.99  
0207.14.04a; 0207.14.99a 
Duck, goose or guinea 
fowl     
0207.42.01  
0207.5 2.01 
0207.60.02  10 45 200  - 
Egmont cheese      
0406.90.06  20 45 1,600  - 
Coffee extracts      
2101.11.01a; 2101.11.99a; 
2101.12.01a 20 45 372 139  
2101.11.02a 10,637 (litres)  
Fish fillets      
0304.31.01; 0304.32.01; 
0304.61.01; 0304.62.01  0 17 55,000  45,782  
White, black and other beans     
0713.33.02a; 0713.33.03a; 
0713.33.99a 0 45 100,000 MT/year  
(except for 2016, 
when the maximum 
amount was 
150,000 MT)  1,055  
Roasted and ground 
coffee      
0901.21.01a; 0901.22.01a; 
0901.90.99a 0 50 100,000  1,336 
Barley      
1003.90.01a; 1003.90.99a 0 15 9,000  6,525  
Oats (other)      
1004.90.99  0 0 140,000  - 
Malt, whether or not 
roasted      
1107.10.01; 1107.20.01  0 15 9,000  7,229  
Carnauba wax      
1521.10.01  10 0 250 - 
Dairy preparations      
1901.90.05a 0 45 44,200  6,281  
Oil-cake and other solid residues resulting from the 
extraction of soya bean oil    
2304.00.01  0 0 700,000  - 
Textured yarn of polyester textile     
5402.33.01  0 5 n.a.b 857 
Motor vehicles      
8702.10.01; 8702.10.02  0 20 n.a.c 67,593  (units)  
8702.90.02; 8702.90.03  
8703.21.99; 8703.22.01  
8703.23.01; 8703.24.01  
8703.31.01; 8703.32.01  
8703.33.01; 8704.21.02  
8704.21.03; 8704.21.99  
8704.31.03; 8704.31.99  WT/TPR/S/35 2 • Mexico  
 
- 165 - 
 
  Tariff line  In-quota tariff  Out-of-quota 
tariff  Quota volume 
(tonnes/year)  Volume 
imported 2015  
(tonnes)  
Toys      
3924.90.99  0 15 n.a.d 64 
8715.00.01  0 10 559,104 (units)  
9401.80.01  0 10 381 
9503.00.01; 9503.00.02  0 15 17,916,973 
(units)  9503.00.03; 9503.00.04  
9503.00.05; 9503.00.06  
9503.00.12; 9503.00.14; 
9503.00.15; 9503.00.16; 
9503.00.20; 9503.00.24; 
9503.00.36; 9503.00.99; 
9504.90.99;  
9506.62.01  0 15 9,304  
a Products subject to both a unilateral quota and a WTO quota. The in -quota tariff is lower for the 
unilateral quota than for the WTO quota.  
b There is no specific annual amount. The amount is determined in accordance with criteria 
established in an agreement (Official Journal of 24  April 2008).  
c There is no specific annual amount. The amount is determined in accordance with criteria 
established in an agreement (Official Journals of 23  March  2015 and 15  January  2016).  
d There is no specific annual amount. The amount is determined in accordance with criteria 
established in an agreement (Official Journals of 23  March  2015 and 15  January  2016).  
Source:  Data provided by the authorities.  WT/TPR/S/35 2 • Mexico  
 
- 166 - 
 
  Table A3. 4 Summary of  preferential tariffs, 2016  
 
Total  Agricultural products 
(WTO definition)  Non-agricultural 
products  
(WTO definition)  
 
Average  Duty -free 
lines  
(%) Average  Duty -free 
lines  
(%) Average  Duty -free 
lines  
(%) 
MFN 5.5 58.1 14.3 24.0 4.6 62.1 
FTA       
United S tates 0.0 99.8 0.0 99.5 0.0 99.9 
Canada  0.3 99.0 2.7 91.5 0.0 99.9 
European Union  0.6 97.1 6.2 73.6 0.0 99.8 
Uruguay  0.9 95.4 4.3 80.3 0.5 97.2 
Colombia  0.7 96.6 6.1 71.8 0.1 99.5 
Costa Rica  0.5 98.5 4.4 87.3 0.0 99.8 
Guatemala  0.5 98.0 4.5 85.7 0.1 99.5 
El Salvador  0.6 97.5 4.8 84.9 0.1 99.0 
Honduras  0.6 97.7 4.4 86.2 0.1 99.0 
Chile 0.1 99.2 1.3 94.6 0.0 99.8 
Nicaragua  0.1 99.6 1.0 96.9 0.0 99.9 
Peru 1.2 91.0 7.2 56.2 0.5 95.1 
Panama  3.3 70.1 8.0 52.9 2.8 72.1 
Japan  1.0 94.6 8.0 58.9 0.2 98.8 
Switzerland  1.3 92.8 13.0 32.5 0.0 99.7 
Norway  1.4 92.0 14.1 25.5 0.0 99.7 
Iceland  1.4 92.3 13.7 28.5 0.0 99.7 
Israel  1.7 90.8 13.4 30.7 0.4 97.8 
Partial scope agreements        
Plurinational State of Bolivia 
ACE 66  0.3 98.3 3.2 85.2 0.0 99.8 
Argenti na ACE 55  5.5 58.7 14.3 24.0 4.5 62.7 
Brazil ACE 55  5.4 59.1 14.3 24.0 4.5 63.1 
Uruguay ACE 55  5.4 59.2 14.3 24.0 4.4 63.3 
Argentina ACE 6  4.8 64.7 13.5 27.1 3.8 69.1 
Brazil ACE 53  5.3 59.6 12.9 30.6 4.4 63.0 
Cuba ACE 51 (domestic 
market)  5.5 58.1 14.3 24.0 4.5 62.1 
Cuba ACE 51 (border 
region)  5.5 58.1 14.3 24.0 4.6 62.1 
Cuba ACE 51 (national 
territory)  4.5 65.1 11.3 33.8 3.8 68.8 
Ecuador APR 29  5.4 58.6 14.1 24.6 4.4 62.6 
Other agreements        
Argentina PAR 4  4.8 58.1 12.4 24.0 3.9 62.1 
Brazil PAR 4  4.8 58.1 12.4 24.0 3.9 62.1 
Cuba PAR 4  4.5 58.1 11.7 24.0 3.7 62.1 
Ecuador PAR 4  4.0 58.1 10.6 24.0 3.3 62.1 
Panama PAR 4  4.5 58.1 11.7 24.0 3.7 62.1 
Paraguay PAR 4  3.7 58.1 9.9 24.0 3.0 62.1 
Ecuador ARAM 2  5.4 58.8 13.9 25.8 4.5 62.6 
Paraguay ARAM 3  5.4 58.9 13.9 26.6 4.5 62.6 
ALADI ACE 7  5.5 58.2 14.3 24.0 4.6 62.1 
Note:  The average takes into account the ad valorem  equivalents (AVEs) for lines subject to specific tariffs. 
The AVEs were estimated on the basis of the unit values of total impo rts in 2015, provided by the 
Mexican authorities. Compound tariffs (44 lines) were excluded from the calculations.  
Source:  WTO Secretariat, based on data from the Mexican authorities.  WT/TPR/S/35 2 • Mexico  
 
- 167 - 
 
  Table A3. 5 General provisions on intellect ual property rights  
Field  Term of protection  Exemptions  
Copyright and related rights  
Originally -created works that 
may be disclosed or 
reproduced in any form or 
medium.  Life of the author plus 100 years.  
 
The term of protection for performers is 75 
years from the first fixation of the 
performance on a phonogram; the first 
performance of works not recorded on 
phonograms; or the first transmission by 
radio, television or another medium.  
The term of protection for producers of 
phonograms is 75 years from th e first 
fixation of the sounds on the phonogram.  
 
The term of protection for producers of 
videograms is 50 years from the first fixation 
of the images on the videogram.  
Broadcasting organizations are granted 
protection for 50 years from the first original 
broadcasting or transmission of the 
programme.  Limitations on economic rights 
provide that disclosed literary and 
artistic works may be used without 
the consent of the right holder and 
without remuneration in certain 
cases only (e.g. reproduction for 
perso nal use).  
The following may also be used 
without authorization: literary and 
artistic works in establishments open 
to the public that sell copies of the 
said works, and ephemeral 
recordings.  
The use of performances, 
phonograms, videograms or 
broadcasts doe s not constitute a 
violation of rights where no direct 
economic benefit is sought, only 
short fragments are used in news on 
current events, and the use is for 
educational or research purposes.  
Patents  
New inventions involving an 
inventive step that are 
industrially applicable.  Non-renewable term of 20 years from the 
filing date.  The following are not patentable: 
(a) essentially biological processes 
for obtaining, reproducing and 
propagating plants and animals; 
(b) biological and genetic material as 
found in nature; (c) animal breeds; 
(d) the human body and the living 
matter constituting it; and (e) plant 
varieties.  
Utility models  
New and industrially 
applicable utility models.  Non-renewable term of 10 years from the 
filing date.  .. 
Industrial designs  
New and industrially 
applicable industrial designs.  Non-renewable term of 15 years from the 
filing date.  Industrial designs are not protected 
where their appearance is dictated 
solely by technical considerations.  
Undisclosed information  
Must relate to th e nature, 
characteristics, or purpose of 
goods, to production 
processes, or to the methods 
of distributing or marketing 
goods or supplying services.  For as long as the confidentiality 
requirements remain in place.  Information that is public property, 
that is obvious to a person skilled in 
the art on the basis of previously 
available information, or that has to 
be disclosed by legal provision or 
court order, shall not be considered 
an industrial secret.  
Trademarks  
Any visible sign that 
distinguishes produc ts or 
services from others of the 
same type or category in the 
market.  Term of 10 years from the filing date, which 
may be renewed for periods of the same 
duration.  The Law establishes a list of 18 
elements that cannot be registered 
as a trademark, includi ng names or 
three-dimensional shapes in common 
use and geographical indications (for 
further information, see Article 90 of 
the LPI).  
Appellations of origin  
Name of a geographical 
region that is used to 
designate a product 
originating therein, the 
qualities or characteristics of 
which are due exclusively to 
the geographical 
environment, including both 
natural and human factors.  For as long as the conditions that justified 
the protection continue to exist.  No limitations  WT/TPR/S/35 2 • Mexico  
 
- 168 - 
 
  Field  Term of protection  Exemptions  
Layout -designs (topographies) of integrated circuits  
Original layout -designs, 
whether or not incorporated 
in an integrated circuit, that 
have not been commercially 
used anywhere in the world. 
They may also be registered, 
even if commercially used in 
Mexico or abroad, provided 
that the ap plication for 
registration is filed with IMPI 
in the two years following 
their first commercial use.  Non-renewable term of 10 years from the 
date on which the application for registration 
is filed.  Layout -designs consisting of a 
combination of elements and  
interconnections that are customary 
or commonplace among creators of 
layout -designs or manufacturers of 
integrated circuits at the time of 
their creation, may only be 
registered if the combination, taken 
as a whole, is considered original.  
Plant varietie s 
Plant varieties that are new, 
distinct, stable and 
homogeneous.  18 years for perennial species; 15 years for 
other species.  The consent of the breeder of a plant 
variety is not required for it to be 
used as a source or an input for 
research into the gen etic 
improvement of other plant 
varieties; for the multiplication of 
propagation material, provided that 
it is for personal use as grain for 
consumption or sowing; or for 
human or animal consumption, 
benefitting only the person who 
harvests it.  
.. Not ava ilable. 
Source:  WTO Secretariat . 
 WT/TPR/S/35 2 • Mexico  
 
- 169 - 
 
  Table A4. 1 Rounds of bidding for hydrocarbon exploration and extraction contracts  
 
Round Two  Calls for bids  
First  Second  Third  
Number of areas subject to 
tender  15 12 14 
Type of tender process  International  
Type of contract  Shared production  Licence  
Method of awarding contract  Sealed -bid first price auctions  
Contracts awar ded  Tender process under way (November  2016)  
Contracts with mandatory 
State participation  
Winning enterprises  
Source:  Online information from the CNH, viewed at: http://ronda1.gob.mx  and 
http://rondasmexico. gob.mx ; CNH quarterly journals, viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/65929/004_JUL -SEP_2015.pdf  and 
https://www.gob.mx/cms/uploads/attachment/file/65930/005_OCT -DIC_2015.pdf ; and information 
provided by the authorities.  Round One  Calls for bids  
First  Second  Third  Fourth  
Number of areas subject to 
tender  14 5 25 10 
Type of tender process  International  
Type of contract  Shared production  Licence  
Method of awarding contract  Sealed -bid first price auctions  
Contracts awarded  2 3 25 8 
Contracts with mandatory 
State participation  None 1 
Winning enterprises  3  5 29 13  
  WT/TPR/S/353 • Mexico  
 
- 170 - Table A4. 2 Main provisions of bilateral air transpo rt agreements  
Partner  
Signature  
Entry into force  
Fifth freedom 
Seventh freedom 
Cabotagea 
Cooperation clausesb 
Airline designation 
clause Withholding clause  Pricing clause  Capacity clause  Substantial 
ownership and 
effective control  
Principal place of 
business  
Community of 
interest  
Dual approval  
Dual disapproval  
Country of origin  
Zone pricing  
Free pricing  
Pre-determination  
Bermuda I  
Free determination  
Argentina  2004 1984 No No No Yes Multiple  √   √       √ 
Australia  2005 2005 Yes No No Yes Multiple  √   √       √ 
Austria  1995 1996 No No No No Dual √   √       √ 
Belgium  1999 2003 Yes No No Yes Dual √   √       √ 
Bolivia, Plurinational 
State of  1993 1996 Yes No No No Multiple     √       √ 
Brazil  1995 1996 Yes No No No Multiple  √   √       √ 
Canad a 2014 2015 No No No Yes Multiple  √       √   √ 
Chile 1997 1999 Yes No No Yes Multiple  √   √       √ 
China  2004 2005 No No No No Multiple  √   √       √ 
Colombia  1975 1975 No No No Yes Multiple     √       √ 
Costa Rica  1991 1995 Yes No No Yes Multiple  √   √       √ 
Cuba 1991 1992 No No No No Multiple  √   √       √ 
Czech Republic  1990 1991 Yes No No No Single  √   √       √ 
Dominican Republic  1994 1996 Yes No No Yes Multiple  √   √       √ 
Ecuador  1995 1996 Yes No No No Dual  √   √       √ 
El Salvador  2006 2007 No No No No Single  √   √       √ 
France  1993 1993 Yes No No No Multiple  √   √       √ 
Germany  1967 1969 Yes No No No Dual √   √       √ 
Guatemala  1993 1993 Yes No No Yes Multiple  √   √       √ 
Hong Kong, China  2006 2008 No No No Yes Dual  √    √     √ 
India 2008 2009 No No No Yes Multiple  √   √       √ 
Indonesia  2013  No No No Yes Multiple   √    √     √ 
Italy 1955 1993 No No No Yes Dual √   √       √ 
Jamaica  2009 2014 No No No Yes Multiple   √  √       √ 
Japan  1972 1973 No No No Yes Multiple √   √       √ 
Korea, Republic of  1988 1989 Yes No No Yes Multiple  √   √       √ 
Luxembourg  1996 1999 Yes No No No Dual  √   √       √ 
Malaysia  1992 1993 Yes No No No Multiple  √   √       √ 
Netherlands  1971 1973 Yes No No No Multiple  √   √       √ 
New Zealand  1999 2000 No No No Yes Multiple   √  √       √ 
Panama  1996 1996 Yes No No Yes Multiple  √   √       √ 
Paraguay  2007 2012 No No No Yes Dual √          √ 
Peru 1989 1990 Yes No No No Multiple  √   √       √ 
Philippines  1952 1952 Yes No No No Multiple  √     √     √ 
Poland  1990 1991 Yes No No No Single  √   √       √  
  WT/TPR/S/353 • Mexico  
 
- 171 - Partner  
Signature  
Entry into force  
Fifth freedom 
Seventh freedom 
Cabotagea 
Cooperation clausesb 
Airline designation 
clause Withholding clause  Pricing clause  Capacity clause  Substantial 
ownership and 
effective control  
Principal place of 
business  
Community of 
interest  
Dual approval  
Dual disapproval  
Country of origin  
Zone pricing  
Free pricing  
Pre-determination  
Bermuda I  
Free determination  
Portugal  1948 1948 No No No No Multiple  √   √       √ 
Russian Federation  1976 1977 No No No No Multiple     √       √ 
Singapore  1990 1991 Yes No No No Multiple  √   √       √ 
Slovak Republic  1990 1991 Yes No No No Single  √   √       √ 
Spain  1978 1979 No No No No Multiple  √   √       √ 
Switzerland  1966 1967 Yes No No No Multiple  √   √       √ 
Thailand  1991 1992 No No No No Single  √   √       √ 
Turkey  2013 2015 No No No Yes Multiple √   √       √ 
United Arab Emirates  2012 2015 Yes No No Yes Multiple   √    √     √ 
United Kingdom  1988 1989 No No No Yes Multiple  √   √      √ √ 
United States  2015 2016 Yes Yes No Yes Multiple  √       √   √ 
Uruguay  2009  Yes No No Yes Multiple  √   √       √ 
Venezuela, 
Bolivarian Republic 
of  1987 1988 No No No Yes Multiple  √   √       √ 
a Where cabotage rights are subject to approval by the aeronautical authorities, they appear as not granted.  
b For example, code -share agreements.  
Source:  WTO Se cretariat and information provided by the authorities.  
__________