WT/TPR/G/352 /Rev.1  
23 June 2017 
(17-3313) Page: 1/28 
Trade Policy Review Body  Original:  Spanish  
 
  TRADE POLICY REVIEW  
REPORT BY  
MEXICO 
Revisi on 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Mexico 
is attached.  
 WT/TPR/G/352 /Rev.1  • Mexico  
- 2 - 
  Contents  
INTRODUCTION  ................................ ................................ ................................ ...............  4 
1  ECONOMIC ENVIRONMENT  ................................ ................................ ...........................  5 
2  STRUCTURAL REFORMS  ................................ ................................ ................................  7 
2.1  Raising Mexico's productivity ................................ ................................ ..........................  7 
2.1.1   Energy reform  ................................ ................................ ................................ ...........  7 
2.1.2   Competition policy reform  ................................ ................................ ...........................  8 
2.1.3   Reform in telecommunications and broadcasting ................................ ............................  9 
2.1.4   Tax reform  ................................ ................................ ................................ ..............  11 
2.1.5   Financial reform  ................................ ................................ ................................ ...... 12 
2.1.6   Labour reform  ................................ ................................ ................................ .........  14 
2.2  Strengthening and broadening the rights of Mexicans  ................................ .....................  14 
2.2.1   Education reform  ................................ ................................ ................................ ..... 14 
2.2.2   New law on amparo  (protection of civil rights)  ................................ .............................  15 
2.2.3   National Criminal Procedure Code  ................................ ................................ ..............  15 
2.3  Bolstering democracy and freedoms ................................ ................................ ..............  15 
2.3.1   Political a nd electoral reform  ................................ ................................ .....................  15 
2.3.2   Transparency reform  ................................ ................................ ................................  15 
3  MEXICO'S TRADE NEGOTIATIONS POLICY  ................................ ................................ . 16 
3.1  Strengthening the multilateral trading system  ................................ ................................  16 
3.2  Optimization of the existing network of trade agreements  ................................ ...............  16 
3.2.1   North American Free Trade Agreement (NAFTA)  ................................ ..........................  16 
3.2.2   Mexico – European  Union Free Trade Agreement (EUMFTA)  ................................ ..........  17 
3.2.3   Mexico - European Free Trade Association (EFTA) Free Trade Agreement  ........................  18 
3.2.4   Mexico – Brazil Economic Complementarity Agreement  ................................ ................  18 
3.2.5   Mexico – Argentina E conomic Complementarity Agreement  ................................ ...........  18 
3.2.6   Mexico – Cuba Economic Complementarity Agreement  ................................ .................  18 
3.3  Negotiation of new agreements  ................................ ................................ ....................  19 
3.3.1   Mexico – Panama Free Trad e Agreement  ................................ ................................ .... 19 
3.3.2   The Trans -Pacific Partnership Agreement (TPP)  ................................ ...........................  19 
3.3.3   Agreement on Trade in Services (TiSA)  ................................ ................................ ...... 19 
3.3.4   Mexico – Jordan Free Trade Agreement  ................................ ................................ ...... 19 
3.3.5   Mexico – Turkey Free Trade Agreement  ................................ ................................ ...... 20 
3.4  Convergence of agreements ................................ ................................ .........................  20 
3.4.1   Mexico -Central America FTA  ................................ ................................ ......................  20 
3.4.2   Pacific All iance ................................ ................................ ................................ .........  20 
3.5  Legal defence of Mexico's trade interests  ................................ ................................ ....... 21 
4  TRADE POLICY  ................................ ................................ ................................ ...........  23 
4.1  Customs Procedures  ................................ ................................ ................................ ... 23 
4.1.1   Changes in respect of cu stoms brokers  ................................ ................................ ....... 23 WT/TPR/G/352 /Rev.1  • Mexico  
- 3 - 
  4.1.2   Changes to the strategic in -bond facility procedure  ................................ ......................  23 
4.1.3   Customs clearance  ................................ ................................ ................................ ... 23 
4.1.4   Implementation of the Digital Window  ................................ ................................ ........  23 
4.2  Tariffs  ................................ ................................ ................................ .......................  23 
4.3  Sanitary and Phytosanitary Measures (SPS)  ................................ ................................ ... 24 
4.4  Intellectual property  ................................ ................................ ................................ ... 25 
4.5  Foreign investment  ................................ ................................ ................................ ..... 26 
4.6  Maritime transport  ................................ ................................ ................................ ...... 26 
4.7  Tourism  ................................ ................................ ................................ .....................  27 
4.8  Regulatory improvement  ................................ ................................ .............................  27 
5  CONCLUSIONS  ................................ ................................ ................................ ...........  28 
 
 WT/TPR/G/352 /Rev.1  • Mexico  
- 4 - 
  INTRODUCTION  
1. The Sixth Trade Policy  Review of Mexico  covers a period in  the world economy marked by 
very low growth that has  significant ly affected  developed economies and caused a sharp 
slow-down in the main emerging countries . This has  occurred against a backdrop of factors that 
have gene rated  great uncertainty and a substantial  drop in oil prices1, high volatility on global 
financial markets and a period of sluggish growth in some of our main export markets.  
2. Mexico  is among  the world 's most globally integrated economies and  as such curren tly faces 
a complicated economic climate : the global outlook has become more complex as a result of 
recent political and electoral events  both in Europe  (the United Kingdom referendum on whether to 
remain part of the European  Union ) and in some areas of th e Americas , where our main trading 
partners are located, triggering great  volatility in international financial markets.  
3. Although the world economic outlook is uncertain, Mexico has sound economic fundamentals 
to address the challenges raised by the curren t situation . These fundamentals include the 
projected and actual achievements  in consolidating  the public finances ; the application of 
preventive monetary policy measures adopted during 2016 ; a well-capitalized , solvent financial 
system free of liquidity p roblems ; and an important, unprecedented process of implementing 
structural reforms launched in 2012.  
4. This report comprises five sections . The first explains  how the Mexican economy has 
develop ed in a difficult economic environment and consequently is in a  position  to tackle new 
challenges ; the second explains the 11  structural reforms that Mexico has been implementing with 
three main objectives in view : (a) raising productivity ; (b) strengthen ing and broaden ing 
Mexicans ' rights ; and (c) bolstering  democrac y and fundamental freedoms . The third section 
describes the trade negotiations undertaken by Mexico in the form of the extension, convergence 
and negotiation of new agreements . The fourth section sets out the most important aspects of the 
country 's trade p olicy. Finally, the fifth section presents the conclusions of the report.  
 
                                                
1 In 2012 the price per barrel of West Texas Intermediate  (WTI) closed at US$109 ; in 2016 it was 
US$40/barrel.  WT/TPR/G/352 /Rev.1  • Mexico  
- 5 - 
  1  ECONOMIC ENVIRONMENT  
1.1.  The period covered by this r eview began in expectation of an upturn in the global economy . 
However, the recovery was weak and resulted in lower -than-expected e conomic growth , owing 
first to the slow -down in the United  States  economy and the main emerging markets, and secondly 
to the latent threat that the United Kingdom might leave the European  Union . Together with the 
rise in anti -free-trade rhetoric in some co untries, the result was  persistent  volatility on 
international financial markets during the period.  
1.2.  The Mexican economy is highly integrated internationally , and therefore these events have 
had significant repercussions on our economic growth . Mexico's Gro ss Domestic Product (GDP) 
grew by 1.4 % in 2013 (down from 4 % in 2012) and by around 2.5 % in 2014 and 2015 . 
Nevertheless , during the period under review average GDP growth was close to 3 %, approximately 
double the rate  in the previous review period.  
1.3.  Despite  the challenging economic environment, between 2011 and 2015 Mexico 's total trade 
grew by 10.8 % to US$776  billion at the end of the period, compared to the performance of the 
global economy , which shrank by 10.2 %.2 This means that trade  between Mexico and the world 
averaged  over US$2  billion every day . Over this  period Mexican exports rose from US$349  billion  
to US$381  billion – a growth rate of  8.9%, whereas imports grew by more than 12.6 %, from 
US$351  billion to US$395  billion. 
1.4.  Turning to trade in service s, between 2011 and 2015 exports grew by 47 %, an average 
annual growth rate of 10%, whereas imports rose by 5.5 % over the same period, i.e. at an annual 
average rate of 1.4 %. Despite this, the trade balance remained in deficit for the entire review 
period,  although the deficit itself shrank.  
1.5.  From 2011 to 2015 foreign direct investment  (FDI)  rose by 33%, an annual average rate of 
7.4%. Over this period, average annual receipts of FDI stood at US$30.7  billion . According to 
UNCTAD, in 2015 Mexico ranked 15th for inflows of FDI, attracting 1.7 % of global flows.  
1.6.  Mexico is in a strong position to weather the challenges of the new international political and 
economic environment . Our country is undergoing an important process of structural reform and is 
enjoying ma croeconomic stability achieved as a result of many years of responsible fiscal and 
monetary policies, a manageable level of debt, adequate international reserves and a solvent, well 
capitalized financial system free of liquidity problems . The salient  features of  the Mexican economy 
include the following:  
 Fiscal strength , as reflected in  the increase in tax revenue  of almost five GDP percentage 
points between 2008 and 2015, thus reducing dependence on oil revenues , which fell from 
39.5% of budgetary revenue  in 2008 to 13.5 % in the first half of 2016 . There are also plans 
for a fiscal consolidation programme that will produce  a primary surplus from 2017  with a 
view to stabilizing  the public debt.  
 A primary surplus for Petróleos Mexicanos (PEMEX) in 2017 , throu gh implementation 
of the PEMEX business plan containing  measures to bolster the company 's finances and 
those of the public sector.  
 Prudent risk management , through the Federal Government 's oil insurance cover 
programme that aims to shield  budgetary revenue  from falling oil prices . Additionally, in the 
third quarter of 2016 the Budgetary Revenue  Stabilization Fund had resources worth 
108.8  billion  Mexican pesos (MMP) , to be used in the even t that Federal Government 
revenue should fall  below the approved leve l. 
 Responsible debt management , including the fact that all Federal Government foreign 
currency write -downs scheduled for 2017 were refinanced during 2016 . 
                                                
2 Calculated using data from the Annual WTO Wor ld Trade Reports for 2012 and 2015.  WT/TPR/G/352 /Rev.1  • Mexico  
- 6 - 
   Net international reserves of US$174  billion at November  2016 , equivalent to just 
over five months o f imports and sufficient to cover all foreign investors ' domestic  debt 
holdings in pesos . Moreover, the Mexican economy is backed by a Flexible Credit Line from 
the IMF for approximately US$88 billion3 which, if necessary , can act with the reserves as a 
significant financial "buffer ". 
 Banking system with almost 15% capitalization  and enough liquidity to withstand 
stress tests more stringent  than those laid down in the regulations in force . It should be 
noted that Mexico 's financial market has displayed grea ter resilience than other emerging 
markets, indicating that the country 's macroeconomic framework is sound and able to 
absorb significant external shocks.  
 In addition, Mexico has stable inflation  ranging from 2 % to 4%, close to the 3 % target 
set by the Ban k of Mexi co. 
 Moreover, its unemployment has been falling throughout the period covered by this 
review  and was below 4 % at end -2016.  
1.7.  However, the Mexican economy faces significant challenges , including a slow -down in the 
global economy ; a potential rise in protectionism that could emerge as a result of  some of our 
chief trading partners ' changing approach es to trade  liberalization ; and financial market volatility.  
 
                                                
3 Source : International Monetary Fund, Press Release, May  2016. Viewed at: 
http://www.imf.org/external/np/sec/pr/2016/pr16250.htm . WT/TPR/G/352 /Rev.1  • Mexico  
- 7 - 
  2  STRUCTURAL REFORMS  
2.1.  In 2012 the Pact for Mexico broke the political stalemate following  a meet ing of the 
three  main political parties at which  a multidimensional reform  package was agreed . This historic 
event allowed the government to promote legislative changes in key segments of the economy.  
2.2.  The result was a bold  package of structural reforms tha t aim s to foster economic growth, 
increase productivity, reduce informality in the labour market , cut income inequalit y and reduce  
poverty.  
2.3.  The reform package is being implemented in a period of external difficulties for Mexico, 
especially the slow recover y from the worst  international f inancial crisis since the 
Great  Depression, the fall in oil prices and the uncertainty associated with the process of monetary 
policy normalization in the United  States.  
2.4.  The 11  structural reforms seek to ac hieve three major objectives : (a) raise our productivity in 
order to trigger economic growth and development in Mexico ; (b) strengthen and broaden rights 
so that they become embedded in daily life ; and (c) strengthen and enhance the rule of 
democracy and fundamental freedom s in our country.  
2.1  Raising  Mexico 's productivity  
2.1.1   Energy reform  
2.5.  The reform radically transformed  the Mexican hydrocarbons market and the activities of the 
National Electricity System in order  to raise productivity and improve service quality , result ing in 
both greater availability of oil, natural gas and their derivatives, and a better , more affordable  
public electricity service with greater coverage . Prior to the entry into force of the energy reform , 
Mexico 's energy sector was almost totally closed to priva te investment . State enterprises, PEMEX 
and the Federal Electricity Commission (CFE) conducted all activities in the energy market value 
chain . The energy reform involved transitioning from a semi -public monopolistic system to a 
market where the semi -public entities could become production -oriented public enterprises and 
compete with private companies . The energy reform also strengthened the sector 's regulatory 
bodies , namely the  National Hydrocarbons Commission and the Regulatory Commission for 
Energy, and  established a Mexican Oil Fund for Stabilization and Development , a National 
Industrial Safety and Environmental Protection Agency for  the Hydrocarbons Sector , as well as 
two independent operators for the electricity and gas systems, namely the National E nergy Control 
Centre (CENACE) and the National Natural Gas Control Centre (CENAGAS) respectively.  
2.6.  The energy reform was implemented through substantive amendment of Articles  25, 27 
and 28 of the Political Constitution of the United Mexican States (Constitu tion), the issuance 
of 22 pieces of secondary legislation (10  new and 12  amended pieces) and the publication 
of 25 regulations . The distinguishing feature of the reform is the adoption of a new energy model 
in the hydrocarbons and electricity subsectors:  
i. Exploration and extraction of hydrocarbons . For almost 70  years hydrocarbons 
were in the hands of a single public company , with a declining  level of oil and gas 
production, which  was prevented from developing potential resources in 
unconventional fields and  deep waters . The energy reform allows open participation 
in exploration and production activities through bidding rounds organized by the 
State ; it incentivizes competitive, flexible contracts based on international best 
practices and provides greater sec urity and certainty to investors through a Five -Year 
Plan for Hydrocarbons Exploration and Extraction . 
2.7.  In 2016 the first four calls for tenders in hydrocarbons were held, comprising Round One  
involving  shallow waters, onshore fields and deep waters, which attracted 48  exploration and 
extraction enterprises from 14  countries (including 26  Mexican enterprises) and expected 
investment of approximately US$49  billion . That year also saw public ation of the terms of the 
first three calls for tenders in Round Two, which will take place in 2017 : the first will be for 15 
shared production contracts in shallow waters, the second for 12  onshore licences (to extract wet WT/TPR/G/352 /Rev.1  • Mexico  
- 8 - 
  and dry  gas – valuable inputs for the petrochemicals industry) and the third will be for 14  contract 
areas, also onshore.  
ii. Transportation, storage, refining and retailing of hydrocarbons . Mexico is 
seeking to increase its capacity to supply natural gas to satisfy demand from 
industry and generate power from cleaner, more affordable sources . To that end the 
Government published a Five-Year Plan for the Expansion of the Natural Gas 
Transport and Storage Network  2015-2019. So far over 2,300  km of pipelines have 
been constructed and over 300  km are already firmly committed with the result that 
investment of US$1 2 billion is expected . In order to guarantee access to the existing 
gas pipe infrastructure, in October  2016 CENAGAS announced the start of the 
first "open season " when private enterprises would compete to reserve capacity in 
the 9,000  km of gas piping tra nsferred to it by PEMEX in January that year.  
2.8.  Other major  projects in which  the private sector has  shown interest in participating include  
construction of storage terminals and multi -product pipelines to import liquid fuels from the 
southern United  States into the north of Mexico ; infrastructure to transport and store petroleum 
products from the Gulf of Mexico to the centre of the country ; and storage terminals in central and 
north -eastern Mexico.  
2.9.  The energy reform launched a strategy for the gradual libera lization of  the gasoline  (petrol)  
and diesel markets . The Hydrocarbons Law provides that import permits for gasoline and diesel 
may be awarded to any  interested  party who complies with the applicable legal provisions ; as a 
result,  since April 2016 the Mini stry of Energy has awarded permits to various enterprises 
interested in participating in new projects in this field.  
iii. Electricity reform . Where the electricity sector is concerned, the energy reform  
offers investment opportunities across the entire electric ity value chain . Prior to this 
reform , the CFE had sole  responsibility for generating, transmitting, distributing and 
marketing electricity in Mexico . Now, however, these segments are open to direct or 
indirect par ticipation by private investors . 
2.10.   Generatio n is open to competition from the private sector in a wholesale electricity market  
where the  most cheaply generated electricity will go on sale first . Additionally, over the next 
15 years the Ministry of Energy envisages the construction of a further 60  GW of installed capacity 
as set out in  its National Programme to Develop the National Electricity System (PRODESEN).  
2.11.   The CFE will  remain responsible for electricity transmission and distribution but it can have 
recourse to private -sector services and experie nce through tendering processes . In accordance 
with the PRODESEN, by 2030 a total of 28,000  km of transmission lines will be required . 
Additionally, the marketing of electricity to users who consume more than 1  MW can  be taken on 
by third parties rather th an remaining exclusively within the purview of  the CFE as is currently the 
case. The CFE will continue to deal with d omestic users.  
2.12.   In order to achieve a successful transition to the energy sources of the future, Mexico has 
minimum targets for cleaner ener gy sources for power generation : 25% by 2018, 30 % in 2021 
and 35 % by 2024 . In order to ensure those targets are met , the energy reform lays down 
provisions on the acquisition and marketing  of Clean Energy Certificates on the wholesale 
electricity market . This year, Mexico invited bids for two long -term tenders that were noteworthy 
in securing globally competitive prices . The new solar and wind capacity to be installed following 
the two tenders is equivalent to  around 170 % of the capacity constructed over th e previous  
18 years . The invitation to bid for the third tender is scheduled for April  2017.  
2.1.2   Competition policy reform  
2.13.   With a view to ensuring free competition and preventing, investigating and combating 
monopolies, monopolistic practices, concentrations a nd other restrictions on efficient market 
operation, the Government of Mexico drove forward significant changes  to the competition regime 
through the amendment  of Article  28 of the Constitution and a new Federal Law on 
Economic  Competition.  WT/TPR/G/352 /Rev.1  • Mexico  
- 9 - 
  2.14.   The reforms to Article  28 of the Constitution notably include:  
 The establishment of two new national economic competition agencies, namely the Federal 
Economic Competition Commission (COFECE) and the Federal Telecommunications Institute 
(IFT) to replace the Federal Compe tition Commission and the Federal Telecommunications 
Commission respectively, as autonomous bodies that are independent of the Federal 
Executive in terms of their decision -making, operation and budget.  
 Each of the seven Commissioners appointed to each auth ority must be highly regarded for 
their technical skills and professionalism and can be removed from office only for 
serious  cause.  
 An Internal Comptroller is appointed by the Chamber of Deputies for each of the 
autonomous bodies.  
 Tribunals specializing in  economic competition, broadcasting and telecommunications are 
provided for.  
 New powers for the economic competition authorities are introduced, including powers to:  
 order measures to remove barriers to competition;  
 regulate access to essential inputs;  
 order the disposal of assets in concentrated markets as a measure of last resort.  
 It provides for a division of powers between COFECE and the IFT, granting the IFT exclusive 
powers in competition in the telecommunications and broadcasting sectors.  
2.15.   The notable  features of the new Federal Law on Economic Competition , which repeals 
the 1992 Law, include:  
 The publication of an annual work program me and quarterly activity reports.  
 Guarantee d separation between the authority investigating potential anti -competitive 
practices and the plenary meeting of the competition authority that makes the decisions.  
 Retention of the key concepts contained in the previous law with regard to absolute and 
relative monopolistic practices, relevant market, substantial power and concent rations.  
 Development of the powers granted under the reformed Article  28 of the Constitution.  
 New penalties and tougher criminal penalties.  
 A mechanism for the separation of powers and coordination between the COFECE and 
the IFT. 
2.1.3   Reform in telecommunicatio ns and broadcasting  
2.16.   Mindful  of the need to reduce the high market concentration in the telecommunications and 
broadcasting sector that has affected users and the economy  as a whole , resulting in low 
coverage, poor quality and high prices – a situation that has constrained  both Mexicans ' right to 
information and the country 's economic, social and cultural development  – the Government of 
Mexico took the decision to push through structural change that would substantially increase 
competition in the two sectors . The resultant telecommunications reform was based around 
six main planks as follows:  
i. Enhancement of fundamental rights . The reform underscores that 
telecommunications and broadcasting are public services that serve the general 
interest and that therefore  the State must ensure that services in these sectors are WT/TPR/G/352 /Rev.1  • Mexico  
- 10 - 
  provided on competitive terms, with guarantees of quality, plurality, universal 
coverage, interconnection, convergence, free access and continuity.  
ii. Modernization of the legal framework governing the  telecommunications 
and broadcasting sectors . In order to increase legal certainty , Mexico enacted the 
Federal Telecommunications and Broadcasting Law regulating the use of the radio 
spectrum, telecommunications and broadcasting networks and services, layi ng down 
a single concession system for the provision of these services, and implementing 
asymmetric regulatory measures in respect of dominant economic operators in 
the sectors.  
iii. A stronger institutional framework . The IFT was established as an autonomous 
constitutional body with responsibility for the regulation, promotion and supervision 
of the radio spectrum, and for telecommunications and broadcasting networks and 
services ; and to act as the competition authority in the se sectors . Specialist tribunals 
have also been put in place to deal with matters in this area in order to provide 
greater certainty for investors . 
iv. Promotion of competition . Regulatory criteria were laid down for dominant 
economic operators in each sector , including the implementation of re gulatory 
measures , oversight and the mechanism to annul  them. At the same time, services 
were opened up to foreign investment of up to 100 % in telecommunications and up 
to 49 % in broadcasting, subject to reciprocity.  
v. Introduction of a Universal Digital Inc lusion Policy and a National Digital 
Strategy . The aim is for at least 50 % of households and 65 % of the population to 
have high -speed internet at internationally competitive prices.  
vi. Drive for greater infrastructure coverage . The fibre optic backbone will b e 
extended and strengthened using the CFE network, and a wholesale shared mobile 
network will be rolled out using the 700  MHz band.  
2.17.   As a result of this reform , between June  2013 and December  2015 prices for 
telecommunications services fell by 23.2 %, pay-tv services  grew by 30 %, taking the percentage of 
households and businesses with either a  cable or satellite service to approximately 60 %; 
additionally there was 12.5 % growth in household internet over the period and at March  2016 
penetration stood at 47 sub scriptions for every 100  households . This is currently one of the most 
buoyant sectors of the national economy and the removal of barriers to foreign investment has 
encouraged new competitors into the sector.  
2.18.   The average level of production in the telecomm unications sector prior to the reform was 
Mex$ 366 billion ; by December  2015, following the reform, it was Mex$ 427 billion . While average 
annual GDP growth over the past five years was 3 %, the figure for telecommunications w as 11 %, 
almost four times higher . Additionally, prior to the reform , the proportion of FDI generated by 
telecommunications was less than 1 %, but in 2015 it accounted for 9.6 % of the total and was the 
third-highest pull factor for FDI to Mexico.  
2.19.   Two and a half years after the telecommunica tions reform, over half of Mexico 's population 
enjoyed mobile broadband services whereas in mid -2013, only 23 % of inhabitants had access to 
them; in the second quarter of 2016 there were 56  mobile broadband subscriptions for every 
100 inhabitants.  
2.20.   The radi o spectrum allocated to mobile telecommunications has increased by over 40 % 
since the establishment of the IFT in 2013 and there are plans for invitations to tender over the 
next two years that will allow 604  MHz to be used for these services, almost tripl e the 222  MHz 
allocated prior to the reform ; this will pave the way for faster, higher -quality services.  
2.21.   In terms of closing the digital gap, the Connected Mexico Programme increased national 
broadband internet connectivity coverage in public places, i.e. schools, libraries, health centres, 
community centres and public spaces . The programme was recognized at the World Summit on WT/TPR/G/352 /Rev.1  • Mexico  
- 11 - 
  the Information Society  2015 held by the United Nations International Telecommunications Union 
and was awarded the prize for the be st programme in its category in the world.4 
2.22.   Mexico is the first Latin  American country to successfully turn off the analogue television 
signal and migrate to terrestrial digital television (TDT) . The TDT policy makes it possible for 
audiences to view 676  digital TV channels compared to the 311  digital channels that were available 
before the constitutional reform.  
2.23.   It should be noted that Mexico is now the most advanced country in Latin  America in terms 
of TDT and that it achieved digital migration in the sho rtest time -span the world has 
ever recorded.5 
2.1.4   Tax reform  
2.24.   In the medium and long term , an economy 's capacity for growth depends on the 
productivity of its production factors . For precisely that reason , at the start of the present 
Administration the Federal Government launched a package of structural reforms that aim to 
increase the productivity of the economy and thereby increase its potential for growth . The tax 
reform  is part of that agenda.  
2.25.   The main objectives of the tax reform that entered into force in January  2014 were to:  
i. expand  the State 's financial capacity by increasing the availability of resources so 
that it can meet the population 's priority  needs;  
ii. reduce the dependence  of the public finances on oil;  
iii. improve fairness by removing tax breaks  and en suring that those who have  more 
contribute more; 
iv. reduce informality and tax evasion by simplifying tax payment s and establishing 
formalization mechanisms that are accessible to all;  
v. introduce social ly responsible  taxes to protect people 's health and the 
environment ; and 
vi. strengthen fiscal federalism by establishing incentives to increase revenue collection 
by state governments and increasing transparency in the distribution of resources to 
the states and municipalities.  
2.26.   The breadth and depth of the reform 's objectives  meant that the entire  tax system  had to 
be overhauled . Accordingly changes were made to consumer and income taxes, including both 
personal income  tax and corporation tax.  
2.27.   The aim of the VAT change s was to remove or limit the existing exception s. In particular , 
the VAT rate in the border region was aligned with the rate prevailing in the rest of the country . In 
order  to press ahead with streamlining  tax payment , the reform abolished the special flat -rate 
business tax (IETU) and the tax on cash dep osits (IDE), thus halving the number of calculations 
that companies have to make monthly to comply with their fiscal obligations . Additionally a new 
income t ax (ISR)  law was established that broadened the tax base and simplifi ed payment by 
abolishing the b ulk of the regimes conferring preferential or special treatment . As a result  of the 
reform, Mexico now has a single corporation tax but generates the same revenue as it did under 
the three taxes that were in place in 2013 (the ISR, IETU and IDE).  
2.28.   The chang es to personal ISR ai med to broaden the base for the  tax and increase its 
progressivity . The marginal rates of the tax were raised for high annual incomes, affecting only the 
                                                
4 Online informatio n from the Ministry of Communications and Transport , viewed at: 
http://www.sct.gob.mx/fileadmin/Comunicaciones/avances -_telecomunicaciones -2015-octubr e.pdf and at 
http://www.itu.int/net/pressoffice/press_releases/2015/18 -es.aspx#.WEnyLrLhCM8 . 
5 Idem.  WT/TPR/G/352 /Rev.1  • Mexico  
- 12 - 
  wealthiest 1 % of the population . A tax was introduced on stock market capital gai ns and the 
distribution of dividends, which are sources of income held chiefly  by the wealthiest households in 
the country.  
2.29.   The multi -faceted nature of the causes of informality mean s that a genuine solution to the  
problem  of the informal sector requires the use of all available tools, including i n particular tax 
instruments . In order to reduce informality , the reform established the Tax Inclusion  Regime (RIF) 
to replace the Small Taxpayers Regime (REPECO) ; it acts as an entry point to the formal sector  for 
the country 's smallest businesses and their workers.  
2.30.   By introducing various special taxes , the reform also combined the use of new tax bases 
with the achievement of non-tax goals . Thus, the reform includ ed new environmental and health 
taxes that place Mex ico at the international forefront in the design of tax tools for environmental 
and health purposes . A tax was introduced on fossil fuel consumption in line with the carbon  
content of the fuel . On health, a 1  peso/L tax was placed on flavoured drinks that contain calorific 
sweeteners and an 8 % tax on calorie -dense  foods.  
2.31.   Although the benefits of the reform will emerge fully in the medium term, almost 
three  years after its entry into force there is already information to evaluate some of the initial 
effects . The tax reform improved revenue  collection , providing  timely support  for the public 
finances in a difficult  environment of great  uncertainty on international financial market s and 
plunging  oil prices . In 2014, tax revenue  was 11.0% higher than in 2013, ri sing as a percentage of 
GDP by 1.1 % to a historic high of 10.5%. That growth continued in 2015  when it rose to  13.1% of 
GDP, a new record . Thus between 2008 and 2015 the rise in tax revenue  was equivalent to 
five GDP percentage points.  
2.32.   Our reform has there fore reduced the dependence  of the public finances on oil by 
two thirds . In 2012 oil revenue accounted for 39.5 % of all public sector revenue : at end -2015 it 
accounted for 19.8 %, and in the first half of 2016, 13.5 %. 
2.33.   The strategy of modernizing and streaml ining the tax framework and the concomitant effort  
to combat informality ha ve broadened the taxpayer base . Between December  2013 and June  2016 
the list of taxpayers grew by 11.6  million from 41.7  million to 53.3  million registrations, a rise of 
27.8%. Additionally the RIF was successful in persuading the country 's microbusinesses to 
formalize their operations . In the year when it was introduced (2014), 900,000 new 
microbusinesses joined the RIF and in 2015 and so far this year ( 2016) a further 320,000  have 
signed up , taking the number of new microbusinesses to join the RIF since its establishment to 
over one million.  
2.34.   The evidence shows that taxation for health purposes has succeeded in changing 
consumption patterns and redirecting them towards healthy produc ts. In early 2016 the British 
Medical Journal6 published a study measuring the effect of the tax on beverages on consumption 
patterns . The study found that compared to pre -tax trends, the tax resulted in a 6 % fall in 
consumption of taxed beverages and a 3. 9% rise in consumption of plain water.  
2.35.   The environmental measures contained in the tax reform have helped to reduce emissions 
of some of the main pollutants . It is estimated that in 2014 and 2015 taxes on polluting fuels led 
to a 11.8  Mt (6.5 %) fall in emi ssions of carbon dioxide, the main cause of the greenhouse effect . 
That drop is equivalent to 20.4 % of that agreed by Mexico for 2014 and 2015 as part of the 
international agreements promoted by the UN Climate Change Convention.  
2.1.5   Financial reform  
2.36.   The aim of  the financial reform is to provide  more credit and make it more accessible , 
especially to Small and Medium -Sized Enterprises (SMEs) . Accordingly the reform encourages 
competition in the financial sector in order to drive down costs, increase the supply of  credit and 
improve the operations of financial entities and regulatory bodies , and consequently  bolster  the 
financial system on a stable, reliable footing . The reform lays down a legal framework that 
                                                
6 Colchero, A., Popkin, B., Rivera, J. and Wen, S. (201 6). "Beverage purchases from stores in Mexico 
under the excise tax on sugar sweetened beverages" . British Medical Journal.  2016-352:h6704.  WT/TPR/G/352 /Rev.1  • Mexico  
- 13 - 
  promotes competition, stability and sound  development i n the sector in order to expand and 
improve credit options . There are four strategic pillars to the financial reform , as follows:  
i. Increase competition and improve the quality of financial services . The 
reform encourages greater competition and transparency  throu ghout the financial 
system by sup pressing anti -competitive practices (such as tied sales), enhancing the 
portability of  operations and services between financial institutions and consumer 
choice . This will expand  the supply of credit on better terms for users . Additionally, 
the reform strengthens the powers of the National Commission for the Protection and 
Defence of Financial Services Users (Condusef) in relation to user protection and as a 
promoter of financial education in Mexico.  
ii. Encourage credit through the development bank ing system . The reform 
boosts the mandate of development banks by prioritizing the provision of  access to 
credit, technical assistance and training in order to drive economic development with 
special emphasis on Mexico 's develop ment priorities  such as infrastructure 
development, and support both for SMEs and for small rural producers . The new 
mandate also supports innovation and the granting of patents, encourages 
environmental sustainability, promotes gender equality and fosters  financial inclusion 
and the operations of the social bank ing system . 
iii. Expand credit through private financial institutions . The reform promotes 
growth of  credit by strengthening the system for granting and enforcing guarantees , 
and speeds up commercial ban kruptcy processes in order to provide greater legal 
certainty to credit providers . It also empowers the financial authorities to conduct a 
periodic evaluation of the performance of commercial banking institutions in relation 
to the levels of credit they ac tually give so that they can channel more resources into 
productive projects . The reform also modernizes the regime governing investment 
funds, the securities market and  savings and loan institutions.  
iv. Maintain a sound, prudent financial system . The reform updates the regulatory 
framework governing the operations and activities of the various financial 
institutions , by strengthening the prudential framework  for overseeing  its solvency 
and sound  development . It also provides the financial authorities with app ropriate 
tools with which to regulate and control the sector proper ly, including better 
mechanisms for cross -authority coordination on stability, as well as a  resolution 
scheme for commercial banking institutions facing solvency or liquidity issues that 
could affect the stability of the financial system.  
2.37.   The reform also incorporates improvements to the arrangement s to enable  the authorities to 
operate effectively , including  the sanctions regime and the granting of legal status to  specific 
coordinating bodie s such as the Financial System Stability Council and the National Financial 
Inclusion Council.  
2.38.   The financial reform has already yielded definite results,  with a rise in domestic finance to 
the private sector from 25.7 % of GDP in 2012 to 32.7 % in September  2016. Additionally it is now 
possible to re -mortgage at lower cost ; unfair terms or "small print " have been abolished ; and the 
obligation to buy unnecessary services has been eliminat ed. The new Financial Institutions Bureau  
has become an effective tool fo r users research ing and assess ing financial services providers . New 
participants have been encouraged to enter the sector ; since the reform was published in 2014, 
eight new banks have been licensed.  
2.39.   The development bank s have  provided the largest share of direct and indirect credit finance . 
They have  implemented credit and guarantee  programmes to support SMEs, rural producers and 
home equity loans, and to support strategic sectors such as transport, aerospace, tourism , as well 
as the  states and municipaliti es. Finally , education and training programmes for more vulnerable 
sectors, including women, have boosted  financial literacy  and awareness . Direct financ e to the 
private sector from  development bank s as a proportion of GDP rose from 1.1 % to 1.9 % between 
December  2012 and September  2016.  WT/TPR/G/352 /Rev.1  • Mexico  
- 14 - 
  2.1.6   Labour reform  
2.40.   The labour reform modernized the Mexican legal framework by introducing adjustments to 
help it address new labour market requirements and needs in line with three principles : promotion 
of access to formal emplo yment ; promotion of decent work ; and more effective protection of 
labour rights and labour laws together with enhanced powers for the labour authorities.  
2.41.   The labour reform legalized new, more flexible methods of recruitment such as recruitment 
on a trial b asis with compulsory initial training to help young people to access employment ; in 
addition, specific forms of recruitment , such as outsourcing, hourly pay and teleworking , were 
made subject to detailed regulation . 
2.42.   Between December  2012 when it entered in to force and June  2016, over two million new 
jobs insured under the Mexican Social Security Institute were created.  
2.43.   The growth in formal employment constitutes another positive result ; it is greater than the 
growth in GDP owing in part to the rise in forma l employment as reflected in the striking 
downward trend in the Informal Labour Rate (TIL) . Between the fourth quarter of 2012 and the 
first quarter of 2016, the TIL fell by 2.3  percentage points from 59.63 % to 57.36 %, the lowest 
level since records began.  
2.44.   Although modernization has borne fruit, there are still some substantial hurdles to overcome 
in order to address fully one of the greatest, most deeply felt demands of workers, namely speed, 
quality, transparency and efficiency in the administration of ju stice in labour -related matters.  
2.45.   Accordingly on 28  April 2016, the head of the Federal Executive forwarded to the Senate of 
the Republic a Draft Decree to amend Articles  107 and  123 of the Constitution and introduce the 
most important labour reform since t he promulgation of the Constitution of the United Mexican 
States of 1917.  
2.46.   The proposals in the  Federal Executive Decree include : 
 The administration of  justice  in labour -related matters  henceforth by organs of the federal or 
local judicial authorities.  
 Overhauling the  conciliation system so that it becomes a preliminary level of jurisdiction to 
which workers and employers must have recourse . 
 The e stablish ment of  specialist, impartial Conciliation Centres with full autonomy in 
technical, operational, budgetar y, decision -making and managerial matters.  
 The e stablish ment of  a decentralized body with the power to record all collective bargaining 
agreements and all trade union organizations.  
2.47.   These constitutional reforms were approved by both Houses of Congress of t he Union . As 
constitutional amendments, they require the approval of the majority of local legislatures : at 
December  2016, ten States had approved the reform.  
2.2  Strengthen ing and broaden ing the rights of Mexicans  
2.2.1   Education reform  
2.48.   The reform guarantees the exercise by children and young people of their right to a 
comprehensive, inclusive, high -quality education that provides them with the tools needed to 
overcome the challenges of a globalized and increasingly digital world . That is the reason behind 
the distr ibution of over 700,000 tablet and 240,000 laptop computers . Additionally, more than 
10,000 primary schools were eligible for assistance under  the "decent school " programme and 
over 23,000 schools became full-time establishments , of which more than 12,000 supply a 
nutritious meal.  WT/TPR/G/352 /Rev.1  • Mexico  
- 15 - 
  2.49.   In order to achieve that target a Professional Teaching Service was established to ensure 
that entry, promotion, recognition and retention in the teaching profession  is based on merit and 
performance, replacing dubious, arbitrary methods . Accordingly Mexicans who have the greatest 
calling and ability to teach will perform this key job.  
2.50.   The first admissions round for the teaching service was held in January  2015. The reform  
also introduced  the Education Management Information System , and t he results of the Survey on 
Schools, Teachers and Pupils in Elementary Education and Special Education were published . 
2.2.2   New law on amparo  (protection of civil rights ) 
2.51.   This reform broadens the protection afforded to citizens under amparo ; it now inclu des the 
human rights provided for in international treaties . The reform also improved the efficiency of 
Mexican justice by simplifying and modernizing procedures . An application for amparo  may now be 
made online and signed electronic ally. 
2.2.3   National Criminal  Procedure  Code  
2.52.   The Code provides a unified model of criminal justice and ensures that all Mexicans are tried 
using the same procedures, regardless of where they are in the country . The new code replaces 
the various sets of procedural rules that were previ ously in place in Mexico, thus reducing the 
leeway for impunity, facilitating coordination between authorities and improving the efficiency of 
investigations . It also paves the way for implementing an adversarial system and oral hearings 
in Mexico.  
2.3  Bolster ing democracy and freedoms  
2.3.1   Political and electoral reform  
2.53.   The reform provides for the possibility of  re-election to Congress , as appeared in the original 
draft of the 1917  Constitution : citizens may thus  recognize  the performance of Members of 
Congress and  Senators and hold them accountable through re -election for the period immediately 
following the end of their term of office . It also changes the electoral institutions and  the rules that 
govern democratic processes in Mexico by upgrading and improving the m. The reform strengthens 
the electoral authority, now renamed the "National Electoral Institute ", by endowing it with the 
capacity  to organize elections in any state of the Republic where the circumstances so warrant, 
thus standardizing the quality of ele ctions throughout the country . The reform merged  the 
authorities responsible  for organizing elections and regulating political parties at federal and state 
levels into a single national authority.  
2.54.   The reform ensures gender equality in candidate nominations  for elections and lays down 
mechanisms whereby citizens who choose to seek public office by standing as independents can 
compete on an equal footing with candidates who have the backing of a political party.  
2.3.2   Transparency reform  
2.55.   This reform provides Mexica ns with access to information about the three tiers of 
government, the political parties and any person , including trade unions, that uses public money ; 
at the same time it lays down effective mechanisms to protect information that must be handled 
with spe cial care because of the personal data it contains.  
2.56.   This is achieved by conferring greater powers on the National Institute for Transparency, 
Access to Information and Personal Data Protection, including the power to bring 
unconstitutionality proceedings, and vesting the Institute with  constitutional autonomy . The reform 
also lays the foundations for the establishment of independent  bodies in  this specific area in each 
of the states, thus consolidating a national system for transparency.  WT/TPR/G/352 /Rev.1  • Mexico  
- 16 - 
  3  MEXICO 'S TRADE NEG OTIATIONS POLICY  
3.1.  Mexico has continued to boost  its competitiveness and integration in global value chains by 
negotiating, formalizing and administering many international trade and investment agreements.  
3.2.  In conformity with the Sectoral Programme for the Ec onomy 2013 -2018, the objective of 
trade policy is to strengthen and invigorate the export platform through a five -plank  international  
trade negotiation strategy , as follows:  
3.1  Strengthening the multilateral trading system  
3.3.  In Mexico 's view, the positive relat ionship between international trade and development has 
been demonstrated time and again and  put to the test during various  economic crises . There can 
be no doubt that more trade means more economic growth and therefore a greater reduction in 
poverty . However, t rade is just one cog, albeit a very important one, in the economic machinery . 
In order to make  the benefits of trade visible , we must supplement it  with policies on  social 
assistance, infrastructure, retraining and restructuring.  
3.4.  The certainty that b usinesses have had in their international operations as a result of a sound 
multilateral trading system , as provided by  the General Agreement on Tariffs and Trade (GATT) 
and its successor the World Trade Organization (WTO) for more than 60  years , has contributed 
significantly to the fact that the volume of world trade has risen 50 -fold since 1950.  
3.5.  That is why Mexico promotes a stronger multilateral trading system within the WTO on 
various fronts.  
3.6.  Firstly, Mexico was one of the main actors and proponents in the WTO Doha Development 
Round ; it participated in various proposals in search of consensus and in various negotiating 
groups in order to try to build bridges between the most polarized positions.  
3.7.  Secondly, through implementation of the agreements reached as part of the Bali package at 
the 9th Ministerial Conference, and the Nairobi package at the 10th Ministerial Conference . 
Accordingly, the Trade Facilitation Agreement (TFA) was approved by the Senate of the Republic in 
April 2016, and in July that year M exico notified its ratification of that Agreement to the WTO . It 
should be noted that in accordance with the notification made by Mexico to the WTO Preparatory 
Committee on Trade Facilitation (notification on Category  A commitments7) our country will 
imple ment all provisions of the TFA upon its entry into force . Additionally, Mexico will comply 
promptly with the commitment to eliminate export subsidies for agricultural products ; in fact the 
notifications made by Mexico between 2012 and 2015 on export subsid ies for agricultural products 
show that no subsidies were granted.  
3.8.  Thirdly, Mexico is up to date in terms of compliance with its transparency obligations and 
notifications for all regular WTO committees and bodies.  
3.9.  Finally, Mexico remains committed to a st able, balanced, predictable and inclusive multilateral 
trading system . The Government of Mexico held the Presidency of the General Council in 2015.  
3.2  Optimization of the existing network of trade agreements  
3.2.1   North American F ree Trade Agreement (NAFTA)  
3.10.   It is c rucial for Mexico to maintain a close, fruitful relationship with the United  States  and 
Canada as strategic members of the NAFTA, an agreement that has without question been a pillar 
and engine of  growth not only for Mexico but for the region as a whole.  
                                                
7 WTO document WT/PCTF/N/MEX/1 of 1 4 May 2014. WT/TPR/G/352 /Rev.1  • Mexico  
- 17 - 
  3.11.   The NAFTA agenda has been developed through : 
 Summits of North American Leaders , held in Washington (2012), Toluca (2014) and 
Ottawa (2016) in order to restate their commitment to continue to develop the trade alliance 
in North America through a strategic lo ng-term vision embracing  various areas covered in 
the treaty . Various trade -related deliverables arose in 2016, including the Cluster Map, the 
internationalization of SMEs, Women 's Entrepreneurship, the establishment of Stakeholder 
Dialogue on North Americ an Competitiveness , the launch of single portals and continuation 
of the initiative to speed up patent processing.  
3.12.   In recent years our work to bolster economic integration bilaterally and trilaterally in 
North  America has focused on the following areas:  
 reducing non-tariff barriers to trade and cross -border transaction costs;  
 improving supply chain logistics in the region;  
 improving infrastructure and border optimization in North America ; and 
 strengthening innovation and entrepreneurship in our societies.  
 High Level Economic Dialogue with the United  States , the first four meetings in this 
dialogue were held in 2013, 2014, 2015, and 2016 ; the objective was to achieve greater 
cooperation in : (i) economic competitiveness ; (ii) links between the societies of the  
two countries ; (iii) leadership in regional and global matters ; and (iv) public safety, with a 
view to promoting economic growth, job -creation and competitiveness in Mexico and the 
United  States . The priority areas of work identified in 2016 included ener gy, modern 
borders, regulatory cooperation, partnership for regional and global leadership ; and linkages 
with private -sector and civil -society stakeholders.  
 Adoption of the Third Mexico -Canada Joint Action Plan , this plan was adopted in 
February  2014 and o utlined the following four priority areas : (i) fostering competitive and 
sustainable economies ; (ii) protecting our citizens ; (iii) enhancing people -to-people 
contacts ; and (iv) projecting the Mexico –Canada partnership globally and regionally.  
 High  Level S trategic Dialogue (HLSD) between Mexico and Canada, established on 
12 October  2016 . The HLSD will provide guidance through a Ministerial Statement on 
functional cooperation mechanisms identifying  the priority areas for future bilateral action . 
Actions take n as part of the Dialogue will focus on four themes:  
 Shared and inclusive prosperity  (includes areas that fall within the remit of the 
Mexico -Canada Alliance working groups – agribusiness, environment, energy, forestry, 
human capital, education, science an d technology, etc.)  
 The safety and security of our people (includes areas such as cooperation on 
security matters, management of emergencies and responses to consular crises, etc.)  
 Strengthening the ties between Canadians and Mexicans and facilitating thei r 
mobility  (includes movement, cultural cooperation on indigenous matters, etc.)  
 Regional and global leadership (including cooperation in regional and multilateral 
forums, etc.)  
3.2.2   Mexico – European  Union Free Trade Agreement (EUMFTA)  
3.13.   In order to promote grea ter integration of production with the European  Union and bring the 
agreement into line with the current international economic environment, both parties agreed to 
modernize and develop the Agreement and extend it to areas that it had not previously covere d. WT/TPR/G/352 /Rev.1  • Mexico  
- 18 - 
  3.14.   In modernizing the EUMFTA based on the Joint Vision Report, Mexico is seeking to:  
 Improve and extend access for Mexican agri -food and fisheries products and services to the 
European  Union market and have a better  legal framework for the promotion and pr otection 
of reciprocal investments.  
 Develop the area of free trade in goods, services and investment, to include areas of mutual 
interest such as trade facilitation, regulatory coherence, electronic commerce, energy and 
raw materials, trade and sustainable  development, and cooperation on SMEs.  
 Develop potential regional cumulation schemes in sectors of mutual interest given that the 
European  Union and Mexico have a network of trade agreements and shared partners in 
Latin America.  
3.2.3   Mexico – European Free Trad e Association (EFTA) Free Trade Agreement  
3.15.   In order to promote new opportunities for international trade in goods, services and 
investment with Iceland , Liechtenstein, Norway and Switzerland, in January  2016 an agreement 
was reached to open negotiations bas ed on the General Framework in order to modernize and 
develop the Mexico –EFTA FTA.  
3.16.   The aim of modernizing the FTA is to extend access for agri -food products ; eliminate 
unnecessary non -tariff barriers ; update the chapters covered by the existing FTA and inc orporate 
new areas such as trade facilitation, telecommunications, electronic commerce, competition policy, 
regulatory coherence, sustainable development, SMEs, cooperation on energy matters, and the 
negotiation of sectoral and cross -sectoral annexes to re duce technical barriers to trade.  
3.17.   A further objective of this updating  process is to strengthen investment flows.  
3.2.4   Mexico – Brazil Economic Complementarity Agreement  
3.18.   The two  parties agreed to extend and develop Economic Complementarity Agreement (ECA) 
No. 53 in respect of market access for goods and will incorporate new chapters to develop trade in 
services, electronic commerce, and trade facilitation, among other areas.  
3.2.5   Mexico – Argentina Economic Complementarity Agreement  
3.19.   Mexico and Argentina have decided to prioritize the extension and development of Economic 
Complementarity Agreement No. 6 in the aim of increasing trade flows in both directions in order 
to consolidate regional integration, and thus further deepen and diversify bilateral trade . It also 
seeks to stimulate investment that will strengthen value chains between the two countries.  
3.2.6   Mexico – Cuba Economic Complementarity Agreement  
3.20.   Mexico and Cuba signed Economic Complementarity Agreement ECA -51 in the framework of 
the 1980 Treaty of Montevideo . Under the Agreement , Mexico granted Cuba tariff preferences in  
respect of 746  headings while  Cuba granted preference s for 152 headings . In 2013 the 
two countries developed ECA -51 through two protocols:  
 The Third Protocol, on market access, which entered into force in November  2014: the 
negotiations covered 3,839 Mexican headings ; preferences were includ ed for 3,625  heading s 
and deepen ed for 214 . The Protocol also covers disciplines such as technical barriers to 
trade and sanitary and phytosanitary measures.  
 The Fourth Protocol to ECA  No. 51 on the dispute settlement regime, which entered into 
force on 4  April 2015.  WT/TPR/G/352 /Rev.1  • Mexico  
- 19 - 
  3.3  Negotiation of new agreements  
3.3.1   Mexico – Panama Free Trade Agreement  
3.21.   The aim of this FTA is to strengthen trade relations between Mexico and Panama by  laying 
down rules that govern trade in goods, services and investment between both countries, protect 
intellectual property rights and provide legal certainty . It also seeks to reinforce both countries ' 
positions as production and distribution platform s for goods and services serving both the north 
and the south of the American continent as well as other international markets.  
3.3.2   The Trans -Pacific Partnership Agreement (TPP)  
3.22.   The negotiation of the TPP is of prime importance  because of its level of ambition, t he 
extensive range of disciplines it covers, the high standards it lays down in each of those disciplines 
and the number of participating countries from four geographical regions (North America, 
South  America, Oceania and Asia) . The 12  countries that are p art of the TPP are : Australia, 
Brunei  Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, 
the United States and Viet Nam.  
3.23.   The TPP has 30  chapters covering traditional disciplines including trade in goods, rules of 
origin, sani tary and phytosanitary measures, technical barriers to trade, services, investment, and 
next-generation areas such as disciplines for state -owned enterprises, trade and employment, 
trade and environment, intellectual property, regulatory coherence, treatme nt of SMEs and 
electronic commerce.  
3.24.   The TPP bolsters Mexico 's presence in its traditional markets, expands opportunities through 
access to new, growing markets, and positions Mexico as a strategic place for investment . The 
Agreement will enable Mexico to i ncrease its synergies with North America and the Asia -Pacific 
region by generating more business opportunities.  
3.25.   The TPP is intended to boost the competitiveness of national businesses on global markets, 
and in turn support the growth and development of SME s to enable them to participate in and 
enjoy the opportunities that arise by virtue of the Agreement.  
3.26.   The TPP negotiations concluded on 5  October  2015 in the city of Atlanta, United  States ; on 
4 February  2016 the Agreement was signed in Auckland, New  Zeala nd, by the Trade Ministers of 
the 12  countries that are party to it . The signature of the TPP by the parties marked the start of 
the domestic legal formalities required in order for the Agreement to enter into force.  
3.27.   On 27  April 2016 the Federal Executive forwarded the TPP to the Senate of the Republic for 
consideration . Between 7 and 23  November  2016 the Senate held public hearings to scrutinize the 
Agreement including presentations by specialists from academia, the public and private sectors, 
and civil so ciety. The Senate should complete the review phase once the TPP has been scrutinized 
by the nine committees to which it was forwarded for consideration.  
3.3.3   Agreement on Trade in Services (TiSA)  
3.28.   The aim of the Agreement on Trade in Services negotiated by 23  countries, all Members of 
the WTO, is to achieve an ambitious degree of liberalization in trade in services and to develop 
disciplines related inter alia  to financial services, electronic commerce and telecommunications , 
among other important areas , in order  to give impetus to this most buoyant of economic sectors at 
world level.  
3.3.4   Mexico – Jordan Free Trade Agreement  
3.29.   Jordan is a leading liberal economy in the Middle East and is recognized for the economic 
reforms it has carried out in recent years . Owing to it s strategic location, an FTA with Jordan would 
facilitate Mexican exports both to Middle Eastern countries and to North Africa and would be the 
first such agreement signed by Jordan with a Latin American country.  WT/TPR/G/352 /Rev.1  • Mexico  
- 20 - 
  3.3.5   Mexico – Turkey Free Trade Agreement  
3.30.   The ne gotiation of an FTA with Turkey is a key plank in Mexico 's trade diversification 
strategy . Turkey 's market has rising purchasing power and a similar economic profile to Mexico 's in 
terms of production and trade . Its geostrategic location is also  a gateway to Eurasian markets.  
3.31.   The scope of the agreement under negotiation includes trade in goods, rules of origin, 
technical barriers to trade, sanitary and phytosanitary measures, trade remedies and safeguards, 
cross-border trade in services, telecommunications,  financial services, electronic commerce, 
temporary admission of business people, investment and intellectual property.  
3.4  Convergence of agreements  
3.32.   In order to respond to the changes in the economy and global trade, Mexico is seeking to 
improve its existing trade agreements by bolstering free transit of goods, services, capital 
and persons.  
3.4.1   Mexico – Central America FTA  
3.33.   This Agreement , which entered into force for all Parties from September  2013, will increase 
and facilitate trade by harmonizing the discipline s contained in the three free trade agreements 
between Mexico and Costa  Rica, Mexico and El  Salvador, Guatemala and Honduras, and Mexico 
and Nicaragua . There will be a single set of rules, a single certificate of origin and a single focal 
point for dialogu e. This will reduce administrative costs for businesses importing and exporting to 
the region.  
3.34.   Given the network of trade agreements and the partners that Mexico and the 
Central  American countries share , the single FTA will allow the development of regiona l cumulation 
of origin schemes.  
3.35.   The FTA will also be conducive to Mexican and Central  American businesses strengthening 
their supply linkages, generating economies of scale and improving their efficiency and 
productivity, thus encouraging regional supply a nd promoting SMEs in particular.  
3.4.2   Pacific Alliance  
3.36.   This pioneering regional integration initiative involves Chile, Colombia, Peru and Mexico , 
which  together account for 37 % of Latin America 's GDP and  52% of its trade , and attract 41 % of 
its FDI. The chief a im is to make progress towards free movement of goods, services, capital and 
persons . During the five years of its life thus far it has taken the following steps towards achieving 
that goal:  
 A Trade Agreement and signature of an Amending Protocol that incl udes a chapter on 
regulatory improvement, an annex on cosmetics and new provisions on electronic commerce 
and telecommunications.  
 Mexican membership of the Integrated Latin American Market (MILA) and work on tax 
alignment, fiscal transparency , infrastructu re and catastrophic  risk. 
 Elimination of visas, a Consular Agreement and the working holidays programme.  
 A number of coopera tion projects such as academic  exchange scholarships, or shared 
embassies and promotion agencies . 
3.37.   On 1 May 2016 the Additional Proto col to the Pacific Alliance Framework Agreement entered 
into force, immediately abolishing duties on 92 % of all goods between the four partner countries 
and heralding the abolition by 2030 of duties on all other goods except sugar in line with various 
timescales . It also covers disciplines that allow economic agents to act under a set of clear rules to 
attract FDI effectively, reduce obstacles to trade, cut transaction costs and facilitate trade 
in services.  WT/TPR/G/352 /Rev.1  • Mexico  
- 21 - 
  3.38.   The Pacific Alliance integration process is more extensive than that  of an FTA because it also 
involves liberalization of capital, persons and cooperative work with a view to promoting the 
four countries ' competitiveness and development . Accordingly the Pacific Alliance also addresses 
areas such as SMEs,  innovation, education, employment, intellectual property, tourism, mining, 
culture, movement of persons, gender, and the environment.  
3.39.   The initiative has generated international interest in the Pacific Alliance . There are currently 
49 observer countries an d other regional integration bodies have made approaches, including the 
Association of Southeast Asian Nations (ASEAN), the Asia -Pacific Economic Cooperation forum 
(APEC), the European  Union and the Southern Common Market (MERCOSUR).  
3.40.   A number of trade deli verables were presented at the 11th Summit of the Pacific Alliance, 
held in Chile in 2016, including:  
i. Interoperability of foreign trade single windows, starting with phytosanitary  
certificates.  
ii. Consolidation of the Venture Capital Fund through the selectio n of a general manager 
to continue to support SMEs as they internationalize and become part of regional 
value chains.  
iii. Launch of the Observatory for Small and Medium -Sized Enterprises.  
iv. Signature of a public -private agenda incorporating the establishment of a Business 
Accelerator and an Investors ' Network.  
3.5  Legal defence of Mexico 's trade interests  
3.41.   Mexico remains firmly committed to defending the interests of its producers and exporters 
within the framework of the multilateral trading system and the various tr ade agreements it 
has signed.  
3.42.    Support for sectors that have been affected by trade -distorting policies has been crucial 
because it contributes to the settlement of disputes and shows that the legal defence of our trade 
interests contributes to the growth and development of our country.  
3.43.   Since the creation of the WTO, Mexico has participated actively in the dispute settlement 
system, as shown by the rankings below8: 
 5th as a complainant (23  requests for consultations submitted) ; 
 9th as a respondent (14  reque sts for consultations received).  
3.44.   Mexico has also participated as a third party before WTO panels and the Appellate Body, and 
ranks 9th in this category (78  cases).  
3.45.   Between January  2013 and 1  December  2016, Mexico participated in 5 dispute settlement 
proced ures as a complainant at various stages and in 16 as a third party . Even more importantly, 
no action was brought against Mexico as a respondent – a clear demonstration of our commitment 
to fulfil the multilateral trade obligations incumbent upon us.  
3.46.   Over t he same period Mexico continued to secure decisions in its favour in compliance 
matters, e.g. US – Tuna II (Mexico) (Recourse to Article 21.5 of the DSU by Mexico)  and 
United  States – Certain Country of Origin Labelling (COOL) Requirements (Recourse to Article 21.5 
of the DSU by Canada and Mexico).  
                                                
8 A "DS" number is allocated to each request for the holding of consul tations . In early disputes, the 
same "DS" number was allocated if there was more than one complainant, but current practice is to allocate a 
DS number for each request for the holding of consultations . Source : online information from the WTO , viewed 
at: https://www.wto.org/english/tratop_e/dispu_e/dispu_by_country_e.htm  (22 November  2016).  WT/TPR/G/352 /Rev.1  • Mexico  
- 22 - 
  3.47.   Mexico also obtained a ruling on the level of nullification or impairment of benefits in the 
amount of US $227 million in United States – COOL (Recourse to Article 22.6 of the DSU by the 
United States)  and authori zation in that regard from the Dispute Settlement Body to suspend tariff 
concessions or other obligations .9 This decision is one of the two cases in which Mexico has 
participated out of a t otal 20  arbitrations conducted i n this field. 
                                                
9 Paragraph  1.32 of document WT/DSB/M/372.  WT/TPR/G/352 /Rev.1  • Mexico  
- 23 - 
  4  TRADE POLICY  
4.1  Customs  procedures  
4.1.  During the review period Mexico introduced a number of important changes to the Customs 
Law with a view to increasing the efficiency of customs procedures for external trade operators . 
Some of those changes are as follows:  
4.1.1   Changes in respect of  customs brokers  
4.2.  Importers may directly carry out customs clearance formalities through their legal 
representative without having to employ a customs broker ; the use of a custom broker 's services 
is now optional.  
4.1.2   Changes to the strategic in -bond facility p rocedure  
4.3.  Under the strategic in -bond facility procedure, set out in the Customs Law, businesses 
operating within the facility may admit foreign, domestic or inward cleared goods into these 
facilities for a limited time for the purpose of handling, storage,  safekeeping, exhibition, sale, 
distribution, processing, transformation or repair . Previously the facilities had to be within the 
boundaries of an authorized customs or in -bond area (whether located  within the country, at the 
border, in a port or an airpo rt), now (2016) they may be established throughout the 
national  territory.  
4.1.3   Customs clearance  
4.4.  The Second Customs Inspection has been formally abolished in order to speed up clearance 
of goods ; at the same time customs inspection using non -intrusive technolo gy has been 
stepped  up. 
4.1.4   Implementation of the Digital Window  
4.5.  Since becoming operational in 2011, the Digital Window has provided access to the 
procedures required by nine federal government agencies and two regulatory bodies . The 
regulators ' work to  simpli fy, streamline and automate various external trade processes  has yielded 
benefits in the following areas, among others:  
4.6.  In terms of costs, the shift to paperless procedures for the various import and export 
formalities  has resulted in : 
 Savings e quivalent t o the cost of felling 27,000  trees per year.  
 Savings from no longer having to forward d ocuments from the 49  customs posts to the 
central offices, at an annual cost of Mex$ 7 million.  
4.7.  In terms of time:  
 Import clearance time was cut  by 40 %, from 5 to 3  days.  
 Time is no longer spent waiting for validation of permits annexed to the declaration because 
they are available for consultation at the Digital Window.  
 The capacity of customs and other agencies with in the system to deal with users was 
expanded  by 900 %. 
4.2  Tariffs 
4.8.  During the period under review, the average Most Favoured Nation (MFN) tariff applied by 
Mexico was reduced  considerably, from 6.2 % in 2012 to 5.6 % in 2016 . The greatest impact was 
on agricultural products where the average tariff fell significantly,  from 20.9 % to 14.8 % over the WT/TPR/G/352 /Rev.1  • Mexico  
- 24 - 
  period . Rates for some products were slashed by more than 50 %: thus bacon and vegetable fats 
and oils (254 % in 2012), along with meat and edible offal of poultry (234 % in 2012) , are now 
subject to a tariff of 100 %. The tariff for other products such as fresh cheese and beans, which in 
2012 was 125 %, has now been cut to 45 %. Consequently , the maximum applied tariff fell from 
254% to 100 %. 
4.3  Sanitary and Phytosanitary Measures (SPS)  
4.9.  With the aim of  making  the agri-food regulatory p rocess  more effective , in November  2012 
the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA) 
established the National Advisory Committee on Agri -food Standardization (CCNNA) . The 
Committee 's role is to propose, develop, r eview, approve, amend, annul, publish and publicize 
Mexican Official Standards (NOMs) in the areas of plant health, animal health, aquaculture and 
fisheries, organic farming, bios afety of genetically modified organisms, quality and safety and 
other areas w ithin the competence of SAGARPA and the sector it coordinates.  
4.10.   In order to do its work efficiently , the Committee comprises at least four specialist 
sub-committees that are responsible  for proposing, scrutinizing and developing draft NOMs in their 
own area s of competence.  
i. The Animal Health Protection Sub -Committee : its remit includes the prevention, 
control and eradication of animal pests and diseases.  
ii. The Plant Health Protection Sub -Committee : its remit includes the prevention, 
control and eradication of p lant pests and diseases ; systems for the reduction of 
contamination risks in the primary production of plants ; any phytosanitary 
campaigns and quarantines.  
iii. The Responsible Fisheries Sub -Committee : its remit covers regulations on the 
exploitation of fishery  and aquaculture resources ; catching systems, methods and 
techniques ; control of fishing for sport and leisure, and responsible fishing 
in reservoirs.  
iv. The Organic and Bioenergy Products Sub -Committee : its remit covers the 
biosafety of genetically modified organisms, organic and bioenergy products ; the 
Sub-Committee must bring them before the Committee for discussion, a vote and 
where appropriate, approval.  
v. Ad hoc  specialized sub -committees will be established where the technical 
complexity of a matter under  consideration so requires . They will be temporary in 
nature and will be dissolved once they have achieved their intended objective.  
4.11.   The Plant and Animal Health Control System has also strengthened animal health, plant 
health and agri -food safety to protec t the public health, raise the competitiveness of the sector 
and promote exports of our agricultural products by enforcing the requirements of the most 
exacting countries . Accordingly new export markets have opened up fo r products such as tequila, 
pigmeat,  strawberries and berries to China ; grapefruit to Japan ; pomegranate s, pitaya and figs to 
the United  States ; and Persian lime s to Korea . Moreover, there was an unprecedented increase in  
exports of beef, avocados, water melon s, melon s, mango es and papaya s to the United  States  
and Canada.  
4.12.   A series of campaigns and visits was launched in Arab countries to publicize Mexican 
agri-food products  and promot e our country 's potential to seize the opportunity afforded by 
liberalization of trade in agricultural products  to Arab countries ; additionally,  the possibility opened 
up to export pigmeat to Canada.  
4.13.   Also during the review period, the National Standardization Commission (CNN) approved the 
establishment of National Committees on Sanitary and Phytosanitary Measures a nd on Technical 
Barriers to Trade (TBT) . The purpose of both National Committees is to act as consultative 
reporting structures ; they are not decision -making bodies but the chief technical bodies overseeing WT/TPR/G/352 /Rev.1  • Mexico  
- 25 - 
  the administration of specific forums in their re spective areas (including identifying and monitoring 
specific trade concerns) and determining Mexico 's negotiating position in SPS and TBT matters.  
4.14.   The objectives of the Committees are  to: 
 Establish  a single channel for interaction with all regulatory auth orities, standard -setting 
bodies, industry and other relevant sectors.  
 Determine Mexico 's position in international negotiations on SPS and TBT matters and report  
on progress in such negotiations.  
 To promote the defence of Mexico 's exporters ' interests (by  identifying, raising and 
monitoring specific trade concerns presented at the relevant WTO Committees).  
 Respond better to the concerns or questions of trading partners about measures taken by 
Mexico in terms of standards, technical regulations, conformity assessment procedures and 
sanitary and phytosanitary measures.  
4.4  Intellectual property  
4.15.   At the international level, Mexico ratified the Marrakesh Treaty to Facilitate Access to 
Published Works for Persons who are Blind, Visually Impaired, or otherwise Print D isabled (2015), 
which entered into force on 30  September  2016. The Protocol Relating to the Madrid Agreement 
Concerning the International Registration of Marks, to which Mexico acceded in 2012, came into 
force in 2013.  
4.16.   Mexico has fulfilled its obligation t o notify laws and regulations in this area to the  Council for 
Trade -Related Aspects of Intellectual Property Rights (TRIPS Council).  
4.17.   Two legislative reforms on industrial property are worthy of note . The first concerned 
trademarks . On 31 August  2016 an ame ndment to the Industrial Property Law entered into force 
establishing a system for opposing trademark registration . Since that date any interested party 
has had a period of one month from the publication of an application for a trademark to oppose 
the gran ting of the mark . Opposition does not have the effect of suspending the 
registration  procedure . 
4.18.   The other reform relates to the Federal Administrative Accountability Law , which entered 
into force on 9  December  2015. Prior to the amendment, there were no fi nancial incentives for 
researchers working in public centres to perform innovative activities because they were unable to 
derive any economic benefit from them , such as royalties . In order to encourage the 
commercialization of intellectual property rights,  the amendment allows researchers, academics 
and specialist staff who have developed an invention in a public -sector centre  to receive up to 70 % 
of any royalties that the invention generates.  
4.19.   Additionally, on 29  August  2016, "Cacao Grijalva " became a prote cted appellation of origin 
pursuant to domestic legislation, joining the 14 other Mexican products that enjoy that status, 
namely : Ámbar de Chiapas, Arroz del Estado de Morelos, Bacanora, Café Chiapas, Café Veracruz, 
Charanda, Chile Habanero de la penínsul a de Yucatán, Mango Ataulfo del Soconusco de Chiapas, 
Mezcal, Olinalá, Sotol, Talavera, Tequila and Vainilla de Papantla.  
4.20.   Finally, as a demonstration of our commitment to cooperation and technical assistance, 
during the TRIPS Council session in November  2016 Mexico presented to the WTO information on 
technical cooperation activities10, including the "Support System for Patent Applications 
Management for the Central American countries and the Dominican  Republic " (CADOPAT), a 
service provided by the Mexican In dustrial Property Institute (IMPI) to help various national 
industrial property offices in Latin America, the Caribbean and English -speaking Africa to carry out 
the patentability examinations for which they are responsible . The support is provided through 
electronic means.  
                                                
10 Document IP/C/W/615 of 22  September  2016.  WT/TPR/G/352 /Rev.1  • Mexico  
- 26 - 
  4.21.   Support is currently being provided to offices in Belize, Colombia, Costa  Rica, Cuba, 
Dominican  Republic, Ecuador, El  Salvador, Guatemala, Honduras, Nicaragua, Panama and 
Paraguay, as  well as to the African Regional Intellectual Property Organization (ARIPO).  
4.5  Foreign investment  
4.22.   Another aspect of the structural reforms introduced in order to boost the competitiveness of 
various sectors  is that the Government of Mexico now allows up to 100 % FDI in activities such as:  
 marketing of gasoline  (petrol)  and distribution of liquefied petroleum gas;  
 construction of pipelines for petroleum and petroleum products;  
 drilling of petroleum and gas wells;  
 telecommunications and satellite communications ; and 
 insurance institutions, bonding institutions, cred it information companies, securities rating 
institutions and insurance agents.  
4.23.   Prior to the reforms, foreign participation in these activities was restricted to a maximum 
of 49%. 
4.24.   During the review period, Mexico concluded Agreements on the Reciprocal Promo tion and 
Protection of Investments with Bahrein,  Haiti, Kuwait Turkey  and United  Arab Emirates , bringing 
the total number of such agreements in force to 30 . Additionally, in May  2015 Mexico and Brazil 
signed an Agreement on Cooperation and Facilitation of Investment (ACFI).  
4.25.   In 2012 investment flows fell sharply to US$21.0  billion as a result of the global financial 
crisis. However they have grown substantially since 2013, to US$47.5  billion . From 2012 to 2015, 
the stock of FDI stood at US$128.8  billion , with an annual average of US$32.2  billion . In 2015 the 
country attracted FDI amounting to US$32.9  billion . The UNCTAD Business Survey 2016 -2018 
ranks Mexico as the eighth most attractive economy for investment for the next three years.  
4.6  Maritime transport  
4.26.   The most extensive National Infrastructure Programme (PNI) of recent decades has been 
implemented over the last four years . To 30 November  2016, over Mex$ 42,271  million has been 
invested, of which 55 % consisted of private investment : a clear example of the con fidence and 
long-term certainty that investors place in Mexico.  
4.27.   In order to continue to expand its trade  network, the Government of Mexico has set the 
target of doubling the installed capacity of the National Port System (SPN) compared to 2012 to 
over 530  million tonnes of installed capacity by 2018 . Accordingly, 25  major projects set out in the 
PNI are under way, including 5  new ports, 5  port expansions, 12  specialized terminals, and 
development of the Economic Corridor of the Isthmus . The works will conso lidate the two port 
systems in the Pacific and the Gulf of Mexico through three multimodal, inter -ocean economic 
corridors : (i) the Northern Corridor, from Mazatlán to Matamoros and Altamira ; (ii) the Central 
Corridor, that connects Manzanillo and Lázaro C árdenas to Tuxpan and Veracruz ; and (iii) the 
Tehuantepec Isthmus Inter -Oceanic Corridor between Salina Cruz and Coatzacoalcos.  
4.28.   On the Pacific side the following works are worthy of note : modernization of Guaymas Port ; 
construction of the Passenger Termina l in Puerto Vallarta ; modernization, expansion and 
construction of Specialized Terminals for Containers and Cars in Lázaro Cárdenas Port ; and the 
extension of the port area and construction of the Multipurpose Terminal in Manzanillo Port.  
4.29.   In the Gulf of Me xico and the Caribbean , the major works include  the construction of the 
new ports in Matamoros, Tuxpan, Veracruz, Seybaplaya and Ciudad del Carmen ; and the 
modernization of Progreso and Altamira ports . Another important project  is the construction of the 
new port in Veracruz, the most important national port project in 100  years . It represents 
investment of over Mex$ 31.0 billion , of which 80 % is private investment . When construction is WT/TPR/G/352 /Rev.1  • Mexico  
- 27 - 
  complete, Veracruz port will have a capacity of over 95 million  tonnes, a fourfold increase in its 
previous size. 
4.30.   In addition to these  major  targets we should also note the ports ' involvement in delivering 
energy reform . Implementation of that reform  requires a new port development strategy that 
includes investment and finance  to fund the expansion and modernization of the  port 
infrastructure and bring new players into the national energy market.  
4.31.   Mexico certifie s that all the country 's ports will be Green Ports . The Government of Mexico is 
redoubling is efforts to ensure that t he country continues to be a safe, reliable destination for 
investment and the development of sustainable projects.  
4.7  Tourism  
4.32.   In September  2014 Mexico hosted the celebrations for World Tourism Day under the theme 
"Tourism and Community Development ". The day is the world 's most important tourism event and 
this time was conducted in the presence of the Secretary -General of the World Tourism 
Organization (UNWTO) and various Ministers for Tourism from around the world.  
4.33.   In 2015 the UNWTO ranked Mexico ninth in the  list of top  destination s for international 
tourists .11 That year Mexico had 32.1  million arrivals, 37 % more than in 2012 . The growth of 
tourism in Mexico is more than twice the level recorded worldwide between 2012 and 2015, and is 
the highest of all ten o f the world 's most visited countries . In 2015 Mexico continued to be the 
most visited Latin  American country and the second most visited country in the 
American  continent.  
4.34.   According to the World Economic Forum Travel and Tourism Competiveness Report 201512, 
Mexico was the fourth most competitive tourist destination in terms of natural resources and is 
home to the sixth highest number of sites that make up the Cultural Heritage of Mankind.  
4.8  Regulatory improvement  
4.35.   Developing regulatory improvement policy into a  State policy . In line with one of  the 
national target s, namely  to make Mexico prosperous, as set out in the National Development Plan 
2013-2018, on 28  April 2016 the President of the Republic forwarded to the Chamber of Deputies 
a Draft Decree supplementi ng Articles  25 and 73 of the Constitution13 and proposing to make it 
compulsory for the three tiers of government to implement a public policy of regulatory 
improvement in the aim of embedding it into the institutional fabric and developing it into a 
State  policy.  
4.36.   That approach involve s implementing a comprehensive blueprint for regulatory 
improvement that includes policies to review, simplify and streamline national and subnational 
laws to ensure that they encourage  greater competition in markets and progre ss towards 
comprehensive regulatory improvement ; optimization of external trade transactions within a 
framework for trade facilitation ; and transparency and accountability.  
4.37.   In taking this approach , Mexico is developing its policy to deregulate and simplify  external 
trade programmes as part of a trade facilitation framework.  
 
                                                
11 Online information from the UNWTO (2016) , viewed at: http://www.e -
unwto.org/doi/pdf/10.18111/9789284418152 . 
12 Online information . Viewed at: 
http://www3.weforum.org/docs/TT15/WEF_Global_Travel&Tourism_Report_2015.pdf . 
13 The Draft Decree is undergoing the approval process in the Congress and may be approved at end 
December  2016.  WT/TPR/G/352 /Rev.1  • Mexico  
- 28 - 
  5  CONCLUSIONS  
5.1.  The review period has been overshadowed by the uncertainty in international financial 
markets arising from latent threats to regional integration and trade liberalization . There has been 
no economic recovery in the period following the global financial crisis and economic growth has 
not returned to pre -crisis levels.  
5.2.  Despite the challenging international economic environment, Mexico 's economy has been 
supported by the sound macroeconomic variables produced by the responsible, disciplined 
application of its fiscal and monetary policies . Additionally, in order to foster competitiveness and 
economic growth, Mexico is undergoing an ambitious, far-reaching  process of structural re forms in 
key sectors of its economy including energy,  telecommunications and broadcasting, economic 
competition,  taxation and finance.  
5.3.  Mexico is a staunch  supporter of the multilateral trading system and played an important role 
in the Doha Round, seeking consensus that would bridge the gap between the most polarized 
positions ; it also  had a hand to play in the achievements of the Bali and Nairobi Ministerial 
Conferences, leading to high expectations for the meeting scheduled for  Buenos  Aires in 
December  2017. 
5.4.  Additionally, our country has sought greater integration with its chief trading partners 
through various bilateral or regional initiatives and in the review period participated in negotiations 
that seek to develop and extend its existing agreements , wh ile also  negotiati ng new 
trade  agreements.  
5.5.  Mexico is convinced that the best tool for addressing the challenge s of the uncertain 
international economic future that lies ahead is to use trade as an engine to drive  growth . We 
must therefore keep our markets  open and our channels for dialogue  working . Mexico is 
committed to doing exactly that . 
__________