WORLD TRADE  
ORGANIZATION  WT/REG109/5 
23 June 2005 
 
 (05-2680) 
Committee on Regional Trade Agreements Original:   English 
 
 
 
FREE TRADE AGREEMENT BETWEEN  
THE EUROPEAN COMMUNITY AND MEXICO 
 
Questions and Replies  
 
 
 The following communication, dated 17 June 2005,  is being circulated at the request of the 
Delegation of the European Communities.   This document reproduces the questions addressed  to the Parties and the responses submitted.  
The questions and replies set out below are or ganized in accordance with document WT/REG109/3. 
 
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II. TRADE PROVISIONS 
 
1. Import Restrictions
 
 
Does the transition period mean the year 2009 in the tariff elimination on agricultural 
products? 
 
The transition period on agricultural products is up to 10 years (category 4), so the end of the 
transition period would be year 2010.  
Please explain the concept of “on a case by ca se basis” in paragraphs 1 and 2 of Article 
10 of this Agreement.   
 
“Case by case basis” means that the review process will be carried out on each product’s 
merits.  
Which measures are set out in Annex IV of this Agreement and which products are 
subject to these measures? Would the Parties provide the trade statistics on these products 
between the EC and Mexico?  Are these measures temporary or permanent?  
 
The measures specified in Annex IV of the Agre ement are self explained in paragraphs 1 to 6 
of such Annex.  Additionally, specific HS Head ings and Subheadings ar e provided for terms of 
reference.  For your reference, please find enclo sed the trade figures for these products (see Annex) 
 
In addition to the tariff differential and/or  enhanced services commitments created by 
the elimination of duties in the context of th e FTA, does the agreement have other provisions 
that affect the comparative economic market access opportunity of countries that are not 
parties to the agreement? 
 
The FTA provides for a clear legal framework that furthers progressive trade liberalisation 
beyond commitments achieved in the Uruguay Round.  Th erefore, this question is not entirely clear.  WT/REG109/5 
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 More importantly, it should be stressed the elimin ation of trade obstacles between the Parties, as 
provided under this FTA, does not involve raising ba rriers to trade with countries that are not parties 
to the Agreement in accordance with  GATT Article XXIV.  In other words, the elimination of tariffs 
and other trade barriers through the FTA does no hinder trade with countries that are not parties to the Agreement.  On the contrary, the FTA contributes to  the deepening of trade liberalisation as well as to 
the creation of incentives for economic growth and increased trade flows both at the regional and 
multilateral level.  The active pa rticipation of the Parties in the WTO demonstrates their strong 
commitment to the promotion of multilateral trade liberalisation.  
Article 3, paragraph 5 provides for liberalizing  tariff eliminations or implementation of 
services commitments ahead of schedule.  In wh at goods/services sectors, if any, has there been 
such accelerated liberalisation? 
 
To date, tariff acceleration h as been agreed between the Par ties at two occasions:  through 
Joint Council Decision 2/2002 referring to cars, vans , batteries, bicycles, pharmaceutical products and 
chemicals and though Joint Council Decision 1/2004 referring to chemical products. 
 
Article 10 provides for a review of addition al liberalization before October 2003.  What 
is the status of this review? 
 
Mexico and the EU have been exchanging and analysing the relevant information on 
agricultural trade, in order to define the ob jectives and the products that can be addressed. 
 3. Rules of Origin
 
 
Would the Parties explain in detail what is meant by the phrase “bilateral cumulation is 
foreseen.”  Does this sentence refer to the extende d cumulation of products originating from 
non-Parties to this Agreement? If so, whic h countries would be covered by the bilateral 
cumulation? 
 
The provisions implementing bilateral cumulation of origin, which are laid down in Article 3 
of Annex III to Decision n° 2/2000, establish that  an originating product from one Party could be 
considered as originating from the other Party, when it is incorporated into a good manufactured in 
the other Party.  Bilateral cumulation of origin is  enforced since 1 July 2000.  These provisions are 
only applicable to the Parties of this Agreement and,  hence, do not apply to any material originating in 
a countries that are not parties to the Agreement.  
4. Standards
 
  4.2 Sanitary and phytosanitary measures  
Article 20 creates an SPS Committee for the FT A partners.  What specific problems or 
issues to date has the committ ee identified and/or addressed? 
 
The main objectives of the Special Committee on Sanitary and Phytosanitary measures are to 
co-operate in order to enhance transparency and facilitate trade in the food and agriculture sector. 
 
The Committee has addres sed issues like Mexico’s procedur es to recognise Member States as 
free of foot and mouth disease and Classical Swine Fever, as well as the EU’s procedures to recognise 
Mexico as free of highly pathogenic avian influenza and to regionalise Mexico for Newcastle disease 
and classical swine fever.  The sanitary authoriti es of both sides are working on the relevant 
information regarding the sanitary status a nd the follow-up to veterinary inspections. 
  WT/REG109/5 
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 As a result, Mexico’s sanitary authorities authorised the direct imports of highland ham 
produced in 2 establishments of Spain and is evalua ting the inclusion of more Spanish establishments;  
Mexico also opened the review process for imports  of ham from Italy.  For dairy products, Mexico 
authorized imports from Austria and, on a country-by-country basis, accepted imports from Member States’ establishments lists based on Council Directive 92/46/EEC. 
 
8. Sector-Specific Provisions
 
  8.1 Steel  
Article 24 creates a special steel committee for the FTA partners.  What does this 
committee do to affect the rules governing this trade? 
 
The Special Steel Committee does nothing that affects the rules governing trade.  The Special 
Committee on Steel Products, which is thought to meet once per year, provides an opportunity to 
discuss all steel issues of interest to both Parties.  
  8.2 Natural Gas - Petroleum 
 
Article 22(f) provides an exception relating to the conservation of exhaustible natural 
resources.  To what specific policies does this ex ception apply in the natural gas and petroleum 
sectors?  In other sectors?  
The scope of this exception is the same as Article XX of GATT 1994. 
 
IV. OTHER 
 
Government procurement
 
 
How do the substance and scope of the FT A government procurement commitments in 
Title III compare to those provided for in the plurilateral Agreement on Government 
Procurement?  Is coverage universal, or are there entity lists?  Are the current opportunities for 
third country supply diminished?    
The scope and commitments in the FTA are e quivalent to the GPA commitments, list of 
covered procuring entities, threshol ds, covered services and exemptions.  With regard to the coverage, 
it must be pointed out that Mexico is not a Party of the GPA.  The procurement procedures and other 
provisions governing the tendering process applicab le to the EU are those of the plurilateral 
Agreement on Government Procurem ent (GPA) Articles 2 and 6 to 15.  In the Annexes VI through XI 
of the FTA the coverage is described and, more sp ecifically, Annex VI contains the entities covered.   
 
Title III guarantees the Parties national treatme nt for the government procurement covered 
under the Agreement. 
 
 
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