WORLD TRADE  
ORGANIZATION  WT/REG212/3/Rev.1 
WT/REG213/3/Rev.1 
WT/REG214/3/Rev.1 
15 September 2009 
 
 (09-4339) 
Committee on Regional Trade Agreements Original:   English/ 
 Spanish 
 
   
FREE TRADE TREATY BETWEEN MEXICO AND THE NORTHERN TRIANGLE - 
EL SALVADOR, GUATEMALA AND HONDURAS 
(GOODS AND SERVICES) 
 
Questions and Replies
 
 
Revision  
 
  The following communication, dated 9 September 2009, is being circulated at the request of the delegations of Mexico and the Northern Triangle, El Salvador, Guatemala and Honduras. 
  This document reproduces the questions addressed to the Parties and the responses submitted. 
 
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Questions from the Delegation of Australia
 
 
1. We note that Mexico's tariff schedule co ntains 11,265 tariff lines with imports under 
17 lines prohibited.  What are the prohibited lines and why are they banned? 
 
 The prohibition on the importation of the products referred to in the Treaty's Tariff 
Elimination Programme is also provided for in the Tariff of the Law on General Import and Export 
Taxes which Mexico applies to third parties.  Mexico applies these measures for reasons of public 
safety, health and morals.   The prohibited products are liste d in Table I, annexed hereto. 
 2. We note that Guatemala has import price requirements on HS 0207.  What is the price requirement and how does it work? 
 
 Guatemala has stopped applying minimum valu es for valuation purposes for products under 
heading 0207, in compliance with the schedul e established by the WTO Customs Valuation 
Committee in its Decision of 5 December 2001 (G/VAL/43). 
 
Questions from the Delegation of Brazil
 
 
3. Regarding the FTA between Mexico and the North Triangle - Guatemala, Honduras 
and El Salvador (WT/REG214/2), we would appreci ate to receive further information about the WT/REG212/3/Rev.1 
WT/REG213/3/Rev.1 WT/REG214/3/Rev.1 
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  possibility of diagonal cumulation, especially between the Parties, the US and CAFTA;  and 
between the Parties and other countries of Central America. 
  Cumulation of origin with the United States is applied in accordance with  the Protocol adding 
textile cumulation provisions to the Free Trade Tr eaty concluded on 29 J une 2000 between Mexico 
and the Republics of El Salvador, Guat emala and Honduras, signed on 16 April 2007.
1  This Protocol 
was implemented through the Agreement announcing Decision No. 18 of the Administrative Commission of the Free Trade Treaty between Mexico and the Northern Triangle on the adoption of 
the implementing regulations for A nnex 3-20 of the Free Trade Treaty, published, in Mexico's case, in 
the Mexican Official Journal of 15 August 2008, and,  in El Salvador's case, in Official Journal 
No. 144, Volume 380, of 31 July 2008.  In Guatemal a's case, this Agreement was incorporated into 
national legislation through Ministerial Agreem ent No. 0771-2008 of 13 October 2008 and published 
on 14 October 2008, entering into force on 21 October 2008, while in Honduras' case, it was 
incorporated into national legislation through Ag reement No. 169-2008 of 11 June 2008, published in 
Official Journal No. 31764 of 18 November 2008.   Mexico, in its various trade agreements  with Central American countries and the 
United States, has agreed on a system of textile or igin cumulation which allows a Central American 
producer of articles of clothing made of non-knitte d or non-crocheted fabrics (Chapter 62 of the 
Harmonized Commodity Description and Coding System ) to use textile materials of US origin in 
articles which are subsequently e xported to Mexico with the tariff preference provided for in the 
respective agreement.  This provision is subject to  quantitative limits.  There is also a cumulation 
clause in the Free Trade Agreement between the Dominican Republic, El Salvador, Guatemala, 
Honduras, Nicaragua, Costa Rica and the United States (DR-CAFTA). 
 
 The Treaty between Mexico and the Northern Triangle does not currently regulate cumulation with third Central American countries.  The Cent ral American countries and Mexico have, however, 
begun to take steps aimed at the convergence of curre nt Agreements with Mexico, partly with a view 
to cumulating materials between all the Central American countries and benefiting from tariff 
preferences.
2 
 
4. Are the preferences granted for goods pr oduced with materials imported with 
suspension or elimination of duties and taxes? 
 
 The preference established in the Treaty is a pplied to products, imported from Party countries, 
which comply with the provisions of Chapter VI (Rules of Origin) of the Treaty. 
 
                                                      
1 The Protocol adding textile cumulation provisions to the Free Trade Treaty between Mexico and the 
Republics of El Salvador, Guatemala and Honduras was ratified in Mexico's case by the Decree published on 19 June 2007;  in El Salvador's case, by Legislative Decree No. 439 of 5 November 2007, published in Official 
Journal No. 215, Volume 377, of 19 November 2007;  in Guatemala's case, by Decree No. 74-2007 of the 
Congress of the Republic of Guatemal a, issued on 28 November 2007 and published in the Central American 
Official Journal on 21 December 2007, Volume CCLXXXIII 34;  and in Honduras' case, by Decree 
No. 175-2007, published in Honduran Official Journal No. 31524 of 2 February 2008. 
2 In March 2009, the Deputy Ministers of Foreign Trade and the Economy of Mexico and Central 
America agreed on a plan of action to begin the convergence process in respect of the free trade agreements 
concluded between the Central American countries and Mexico, their aim being to agree on a legal instrument 
that would favour a greater level of integration between Mexico and Central America.  To this end, negotiating groups will be established on the issu es of market access, services and investment, government procurement and 
intellectual property, and institutional aspects and dispute settlement.  WT/REG212/3/Rev.1 
 WT/REG213/3/Rev.1 
 WT/REG214/3/Rev.1 
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  5. Are there any plans to implement digital certificates of origin, with digital signature? 
 
 The Free Trade Treaty between Mexico and the Northern Triangle does not contain any 
provisions on the use of digital certificates of origin  with digital signature.  This does not, however, 
prevent the Parties from using such a mechanism, subject to agreement. 
Questions from the Delegation of the European Communities
 
 
Liberalization of trade and tariff lines  
 
6. After entry into force in 2001 the yearly ta riff elimination commitments are particularly 
important in the period 2009-2010 with total liberalization to be completed by Mexico in 17.5 per cent of its imports from Guatemala (in value) and 36 per cent of its imports from Honduras.  Complete liberalization will be also achieved in 2009-2010 for significant percentage 
of Mexico's exports to Guatemala (16 per cent), Honduras (20 per cent) and El Salvador 
(16.7 per cent) in the period 2009-2010. 
 
 Could the Parties confirm that the impl ementation of the Agreement proceeds as 
foreseen and that comparably sizeable trad e flows will achieve duty-free regime during 
2009-2010? 
 
 The Parties can confirm that this is so.  Im port tariff elimination is proceeding in accordance 
with the corresponding tariff elimination programme.  During the period 2009-2010, 97 per cent of Mexico's Tariff is to become duty free.  See the in formation provided in reply to the question below. 
 7. Charts I.3 and I.4, included in the 'Trade Environment' chapter and based on COMTRADE database, show as much as a five-fold increase in the value of imports of Mexico from the Northern Triangle between the yea rs 2000–2007, and a two-fold increase in its exports 
during the same period.  However the percent age of tariff elimination commitments by the 
Parties is measured (cf. Tables III.1A, B, C and D) only by reference to the value of trade during the period 1998-2000. 
 
 Could the Parties provide some indications based on more recent bilateral trade data 
regarding the percentage of trade in value which remains dutiable in each of the six possible trade directions under the Agreement? 
  See the tables annexed hereto. 
 
Rules of origin
 
 
8. What are criteria and legal basis for determination of origin, certification requirements 
and customs control procedures in relation to  materials originating or manufacturing or 
processing operations performed in the US or other countries (non-Parties to the Agreement) 
with which diagonal cumulation is allowed? 
 
 See the reply to question 3 posed by Brazil.  
 It is the cumulation clause of the Free Tr ade Agreement between the United States and the 
Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua (DR-CAFTA) 
that applies.  This clause provides that a Central American clothing producer may use textile materials WT/REG212/3/Rev.1 
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  of Mexican origin in its production process and yet still obtain the tariff preference under the Free 
Trade Agreement.  This preference is limite d to a certain quota of articles of clothing. 
 
 The Customs Cooperation Agreement between  Mexico and the United States allows: 
 
(a) Mexican customs authorities to verify the origin of textile materials produced in the 
United States and incorporated into articles of clothing assembled in Central America, for which the preferential treatment provided for in the cumulation annexes 
of the Free Trade Agreements with Central America has been requested;  and 
 
(b) US customs authorities to verify the orig in of textile materials produced in Mexico 
and incorporated into articles of clothing assembled in Central America, for which the preferential treatment provided for in  the DR-CAFTA has been requested. 
 
Trade in services and investment
 
 
9. Paragraph 150 of the Factual Presentatio n indicates that, with respect to Honduras, 
"[h]orizontal commitments under the GATS including a ceiling on the number of foreign workers in an enterprise, a limitation on foreign investment on grounds of its impact on local 
economic activity and employment and of its contribution to the training of Honduran 
personnel in their respective a reas of expertise, have been lifted under the Treaty". 
 
 Could Honduras confirm whether the above -referred statement reflects the overall 
future RTA trade policy of Honduras in the areas of restrictions in the number of workers?  If 
this were not the case, could Honduras explain the reasons for having granted this concession to 
Mexico? 
 
 The statement referred to by the European Communities appears in the factual presentation 
prepared by the WTO Secretariat on its own respons ibility and cannot therefore be attributed to a 
policy of Honduras.  Nevertheless, this concession  is a result of the negotiation process between 
Honduras and Mexico within the frame work of the Free Trade Treaty. 
 
10. Table IV.1 lists the existing non-conforming measures in Mexico.  It is indicated that in 
all sectors, "[p]ermission by the National Co mmission on Foreign Investment (NCFI) is 
required for investment above 49 per cent by foreign investors.  From 2003, the threshold for 
investors from the Northern Tr iangle is increased annually". 
 
 Could the Parties elaborate on the reasons for maintaining the existing restrictions of 
ownership for Central American countries in Mexican firms if full liberalization is envisaged at a certain stage? 
  Under the Mexican regulatory framework, Article  9 of the Foreign Investment Law provides 
that the approval of the National Commission on Fore ign Investment is required for foreign investors 
to acquire, directly or indirectly, more than 49 pe r cent of a company's capital stock, only when the 
total value of the assets of the targeted company,  at the time of submitting the acquisition request, 
exceeds a threshold amount established annually by the Commission. 
 
 The above is reflected in our reservations in this and other Treaties.   It should be noted that the approach adopted  for negotiation in respect of the chapter on 
cross-border trade in services is the negative list approach, which means that the various activities  WT/REG212/3/Rev.1 
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  making up the services sector have been liberali zed, except as indicated in Mexico's list of 
reservations.  This chapter also provides for a ratc het clause which means that if Mexico liberalizes 
certain services unilaterally, such  liberalization is bound, and may no t subsequently be reversed by 
Mexico. 
 
Question from the Delegation of Japan
 
 
11. The last sentence of paragraph 121 says that the Party refusing to issue an immigration 
document must give in writing, to the business person, the reasons for the refusal and promptly 
notify these reasons to the other Party in wr iting.  Japan would like to know whether the 
refusing Party must notify every individual refused  case to the other Party in writing one by 
one, or not. 
  Immigration permit refusals w ill be notified on a case by case basis.  Permits will be refused 
only on the grounds set forth in paragr aph 2(a) and (b) of Article 13.04. 
  Article 13.04 (Temporary Entry Authorization) of the Free Trade Treaty between Mexico and 
the Northern Triangle, provides that:  
1. Pursuant to …  
 2. A Party may refuse to issue an immigration document authorizing employment to a business 
person where the temporary entry of that person might adversely affect:  
 (a) The settlement of any labour dispute that  is in progress at the place or intended place 
of employment;  or 
  (b) the employment of any person who is involved in such dispute.  3. When, pursuant to paragraph 2, a Party refuses to issue an immigration document authorizing 
employment, it shall: 
  (a) Inform the business person in writing of the reasons for the refusal;  and   (b) promptly notify, in writing, the Party whose business person has been refused entry of 
the reasons for the refusal. 
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  ANNEXES 
 
Table I
 
Mexico's Tariff Elimination Programme  
Prohibited Imports  
 
 
Heading 1 Description 
03019901 Predators, in young, youth and adult states 
12119002 Marijuana (Cannabis Indica) 
13021102 Prepared for smoking 
13021902 Of marijuana (Cannabis Indica) 
28332903 Thallium sulphate 
29035903 1,2,3,4,10,10-Hexachloro-1,4,4a,5,8,8a-hexahydro-endo-endo-1,4:5,8-dimethanonaphthalene 
29035905 1,4,5,6,7,8,8-Heptachloro-3a,4,7,7a, tetrahydro-4,7-methanoindene 
29109001 1,2,3,4,10,10-Hexachloro-6,7-epoxy- 1,4,4a,5,6,7,8,8a-octahydro-endo,endo-1,4:5,8- 
dimethanonaphthalene 
29251901 N-Phthalyl glutamic acid imide 
29310005 O-(2,5-dichloro-4-bromophenyl) o-methyl phenyl thiophosphonate 
29391002 Diacetylmorphine 
30034001 Preparations of Cannabis Indica 
30034002 Preparations of acetyl morp hine or its salts and derivatives 
30044001 Preparations of acetyl morp hine or its salts and derivatives 
30044002 Preparations of Cannabis Indica 
49089005 Printed in colour or black and white, put up for sale in envelopes or packages, whether or not 
containing chewing gum, candies or any other type  of article, featuring figures or illustrations 
which depict childhood in a degrading or ridiculous  manner, in states that may incite violent, 
self-destructive or any other form of anti-social behaviour, for example "Garbage Pail Kids", and 
marked as having been printed in the USA or in any other country by "Topps Chewing Gum 
Incorporated" or by any other trading enterprise 
49119105 Printed in colour or black and white, put up for sale in envelopes or packages, whether or not 
containing chewing gum, candies or any other type  of article, featuring figures or illustrations 
which depict childhood in a degrading or ridiculous  manner, in states that may incite violent, 
self-destructive or any other form of anti-social behaviour, for example "Garbage Pail Kids", and 
marked as having been printed in the USA or in any other country by "Topps Chewing Gum 
Incorporated" or by any other trading enterprise 
  WT/REG212/3/Rev.1 
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 WT/REG214/3/Rev.1 
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  Table III.1A – Mexico
 
 
Tariff Elimination Commitments Under the Treaty and Corresponding Average Trade  
 
 
Number of lines % of total lines in 
Mexico's tariff 
schedule Value of Mexico's 
imports 
(2004-2006) 
in US$ million % of Mexico's total 
imports 
(2004-2006) Duty 
phase-out 
period 
El Salvador 
Guatemala 
Honduras 
El Salvador 
Guatemala 
Honduras 
El Salvador 
Guatemala 
Honduras 
El Salvador 
Guatemala 
Honduras 
MFN 
duty-free 
(2001) 152 152 152 1.3 1.3 1.3 0.4 34.3 0.0 0.7 12.9 0.0 
2001 9,077 9,095 7,979 80.6 80.7 70.8 36.9 125.5 25.6 66.9 47.2 27.4
2004 112 131 134 1.0 1.2 1.2 4.1 9.1 0.9 7.5 3.4 1.0 
2005 418 259 312 3.7 2.3 2.8 9.3 7.4 4.7 16.9 2.8 5.0 
2006 12 16 1,218 0.1 0.1 10.8 0.0 0.3 17.0 0.1 0.1 18.2
2007 794 955 799 7.0 8.5 7.1 2.2 17.6 1.1 4.0 6.6 1.2 
2008 36 16 43 0.3 0.1 0.4 0.0 1.6 0.0 0.0 0.6 0.0 
2009 362 327 327 3.2 2.9 2.9 1.6 34.3 43.8 2.9 12.9 46.9
2010 23 29 26 0.2 0.3 0.2 0.0 9.6 0.0 0.0 3.6 0.0 
Remain 
dutiable 279 285 275 2.5 2.5 2.4 0.5 26.3 0.2 1.0 9.9 0.2 
Total 11,265 11,265 11,265 100.0 100.0 100.0 55.2 266.0 93.4 100.0 100.0 100.0
Note: No import data;  exclude s data beyond HS Chapter 97. 
Source:  WTO Secretariat based on data provided by Mexico and WTO IDB. WT/REG212/3/Rev.1 
WT/REG213/3/Rev.1 WT/REG214/3/Rev.1 
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  Table III.1B - El Salvador
 
 
Tariff Elimination Commitments Under the Treaty and Corresponding Average Trade  
 
 
Duty phase-out 
period Number of lines % of total lines in 
El Salvador's tariff 
schedule Value of El 
Salvador's imports 
from Mexico 
(2004-2006) 
in US$ million % of El Salvador's 
total imports from 
Mexico (2004-2006)
MFN duty-free 
(2001)  2,812  47.0  164.5  32.9 
2001  540  9.0  112.4  22.5 
2002  21  0.4  27.4  5.5 
2003  2  0.0  0.1  0.0 
2005  781  13.0  23.4  4.7 
2006  4  0.1  0.0  0.0 
2007  419  7.0  11.1  2.2 
2008  124  2.1  21.4  4.3 
2010  720  12.0  85.2  17.0 
2011  310  5.2  34.2  6.8 
2012  32  0.5  1.9  0.4 
Remain dutiable  224  3.7  18.8  3.8 
Total  5,989  100.0  500.4  100.0 
Note: Calculations exclude im port data under HS Chapter 98. 
Source:  WTO Secretariat based on data provi ded by El Salvador and WTO IDB. 
  WT/REG212/3/Rev.1 
 WT/REG213/3/Rev.1 
 WT/REG214/3/Rev.1 
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  Table III.1C – Guatemala
 
 
Tariff Elimination Commitments Under the Treaty and Corresponding Average Trade  
 
 
Duty phase-out 
period Number of lines % of total lines 
in Guatemala's 
tariff schedule Value of Guatemala's 
imports from Mexico 
in US$ million % of Guatemala's 
total imports from 
Mexico 
MFN duty free 
(2001)  3,270  54.6  263.21  70.2 
2002  20  0.3  -  - 
2003  5  0.1  0.7  0.2 
2004  6  0.1  23.4  6.4 
2005  793  13.2  0.6  0.2 
2006  4  0.1  3.3  0.9 
2007  443  7.4  8.8  2.4 
2008  93  1.6  65.0  17.7 
2009  1  0.0  0.2  0.1 
2010  750  12.5   
2011  289  4.8   
2012  40  0.7   
Remain dutiable  271  4.5  10.0  2.7 
Total  5,985  100.0  375.2  100.0 
Source : Ministry of the Economy of Guatemala. WT/REG212/3/Rev.1 
WT/REG213/3/Rev.1 WT/REG214/3/Rev.1 
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  Table III.1D – Honduras
 
 
Tariff Elimination Commitments Under the Treaty and Corresponding Average Trade  
 
 
Duty phase-out 
period Number of lines % of total lines in 
Honduras' tariff 
schedule Value of Honduras' 
imports from Mexico 
(2004-2006) 
in US$ million % of Honduras' 
total imports from 
Mexico (2004-2006)
2001  3,941  54.5  130.2  53.2 
2002  3  0.0  0.1  0.1 
2003  4  0.1  0.7  0.3 
2005  372  5.1  10.0  4.1 
2006  625  8.6  1.8  0.7 
2007  74  1.0  0.2  0.1 
2008  558  7.7  15.5  6.3 
2010  875  12.1  56.8  23.2 
2011  137  1.9  3.0  1.2 
2012  209  2.9  10.9  4.5 
Remain dutiable  436  6.0  15.7  6.4 
Total  7,234  100.0  245.0  100.0 
Note: Calculations exclude im port data under HS Chapter 99. 
Source:  WTO Secretariat based on data provided by Honduras. 
 
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