WORLD TRADE  
ORGANIZATION  WT/REG109/6 
24 March 2006 
 (06-1330) 
Committee on Regional Trade Agreements Original: English 
  
 
FREE TRADE AGREEMENT BETWEEN  
THE EUROPEAN COMMUNITIES AND MEXICO 
 
Questions and Replies
 
 
 
 The following communication, dated 21 March 2006, 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. 
  
_______________ 
  
I. BACKGROUND INFORMATION ON THE AGREEMENT 
 
3. Scope 
 
1. To further elucidate the scope of this Agree ment, we request that the Parties provide 
data to this Committee on the number of tari ff lines covered in this Agreement.  Specifically, 
could the Parties provide the number of tariff lines  fully liberalized by the end of the transition 
period; the number of tariff lines liberalized in each category described in Articles 8, 9 and 10 of the Agreement; the number of tariff lines exclude d entirely from the Agreement and the total 
number of tariff lines in each Party’s schedule.  
 See the attached table on the EU tariff liberalisation by sector.  
2. What is the timetable for complete duty free trade? 
3. What exemptions are there in the EC Mexico FTA? 
 Parties believe that these questions have already their reply in the original notification of the 
Agreement.  
4. Has there been any further liberalisation (or plans for further liberalisation under the 
review mechanism)? 
 Parties successfully negotiated a preferential quot a for tuna loins originating in Mexico: 5.000 
tons progressively increased to 15.000 tons at 6 % ad valorem  duty. Furthermore parties are currently 
engaged on the review clause foreseen in Article 10 of the Agreement. 
 
5. Have all EC duties on industrial products  been eliminated (due 1 January 2003)? 
 EC imports industrial duties were phased as from the scheduled date of 1 January 2003. WT/REG109/6 
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  4. Trade data 
 6. At time of entry into force agriculture account ed for only 6 percent of bilateral trade 
and the amount of liberalisation on the FTA on  agriculture was limited. Has this improved?  
 According to EUROSTAT, at the time of entry into force agriculture accounted for only 3,6% 
of bilateral trade, not 6% as stated by Australia. Th is ratio has been maintain ed in 2002-04 average. 
(See ANNEX
) 
  
II. TRADE PROVISIONS 
 
1. Import Restrictions  
 1.1.1. Industrial products 
  
 B – Mexico’s tariff elimination on industrial products 
 7. In section C, paragraph 2.3 of Annex II, Me xico agrees to eliminate all duties on motor 
vehicles from the EC listed in paragraph 5 by 1 January 2007. Does Mexico intend to eliminate 
all TRQ on such motor vehicles as well? 
 According with section C of Annex II, Mexico agrees to grant a preferential treatment for 
vehicles originating in the EC inside a quota with a diminishing tariff rate. Inside the quota, the tariff 
rate has been eliminated since 1 January 200 3 (paragraph 2.1(iv), section C of Annex II). 
  There is also a preferential treatment applied to vehicles originating from the EC, imported into Mexico outside the quota. The tariff rate a pplied on such vehicles is 10 percent as a maximum, 
until 31 December 2006 (paragraph 2.2, section C of Annex II). This tariff rate will be eliminated by 
1 January 2007, as indicated in paragraph 2.3. 
 
 1.1.2. Agricultural products 
 
8. What is the percentage of agricultural tari ff lines on which have been eliminated to 
zero?  
 34,8% of the agricultural tari ff lines are already duty free. 
 
9. During the 2001 review, Australia noted th e large number of tariff lines falling into 
Category 5 (where the only commitment was to rev iew the applied tariffs no later than three 
years after entry into force (i.e.: July 2003)   
(a) Has this review occurred? If so, what is the outcome of this review?  
 We are currently reviewing tariffs applied to  products under Category 5. There is no outcome 
yet.  
 
(b) Can the Parties provide information on the amount of bilateral trade falling 
under Category 5 tariff lines?  
 1.18% of agricultural imports from Mexico to the EU are falling under Category 5  (average 
2002-2004).     WT/REG109/6 
 Page 3 
 
 
  10. We note that Mexico and the EU have been exchanging and analysing relevant 
information on agricultural trade to define th e objectives and products that can be addresses 
(WT/REG109/5). Could the Parties provide further details on which products are likely to be 
included and what the timeframe for liberalisation would be?  
 We are not able to provide further details on which products are likely to be included and 
what time frame for liberalisation would be. Negotiations are still ongoing. 
 
 A – EC tariff eliminati on on agricultural products 
 
11. In Section A of Annex I, describing Category 6, the Community creates tariff quota 
concessions “with a preferential customs duty no greater than  50 percent of the lower of” the 
MFN rate or GSP rate (emphasis added) (e.g., items 2 & 3).    
o This provision establishes a maximum duty; what is the actual applied 
preferential duty? 
 
o Can the Community change the duty within the established parameters? 
 
The question in the way it is posed, in particular  with the addition of the emphasis, may create 
a certain confusion. The concession is clear: 50% of  the MFN or GSP duty whichever is the lower. 
The applied preferential duty is that one calculated at  the moment of the customs clearance in the EU. 
 
12. In Section B of Annex I describing Category 7, the Community sets forth its 
commitments to eliminate ad valorem  MFN or GSP duties “but may apply” (emphasis added) 
the MFN or GSP specific duty on the listed products.  
 Regarding Category 7 in Section B of Annex I, the decision to apply (or not apply) the MFN 
or GSP specific duty on the listed products follows a line by line basis. 
  
o Could the Community please describe how the decision to apply (or not apply) 
 the MFN or GSP specific duty is made?  For example, is it made on a entry-by- entry basis, on a line-by-line basis? on a year-by-year basis?  
 The specific duties in question are based on th e formulation of the product concerned (its 
composition in basic products such as milk fat, milk protein, glucose, sucrose) and the table used to 
fix these duties is unchanged since 2001 (you can find this table in annex 1 of the Commission Regulation (EC) N°1810/2004 of 7
th September 2004 amending Anne x 1 to Council Regulation 
(EEC) N° 2658/87 on the tariff and statistical nomenc lature and on the Common Customs Tariff – OJ 
L137 of 30th October 2004). So these specific duties do not change with time and varies line-by-line 
according to the composition of the product. 
 
o How are importers notified of any changes in the tariff treatment of these tariff 
lines? 
 Because there is no change, importers do not need to be notified. 
 
o Are imports over the established quota amo unt allowed into the Community?  If 
so, at what rate?  
 There is a sole preferential quota contained in  Section B of Annex I. The same section 
specifies the tariff treatment given to products im ported into the EC outside the preferential quota. 
 WT/REG109/6 
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   B – Mexico’s tariff eliminat ion on agricultural products 
 
13. In Section B, item 1 of Annex II, Mexico agrees to allow imports of certain sugar 
products (items 1704 10 01 and 1704 90 99) “with a preferential customs duty no greater than 16 percent ad valorem, plus 0,39586 United States do llars/kg of content of sugar.”  In the most 
recent tariff schedule of Mexico provided to the IDB, there is no duty amount provided for these 
two products.  In the interest of transparency, would Mexico please provide its MFN rate for these two products? 
 The MFN rate is the following: 
 
1704.10.01: 20 percent ad valorem  plus 0.36 United States dollars/kg of content of sugar.   
1704.90.99: 20 percent ad valorem  plus 0.36 United States dollars/kg of content of sugar.  
 
5. Safeguards 
 
14. Have any safeguards measures been invoked? What are the significant differences 
between the safeguards and the WTO Safeguards Agreement? 
 No safeguard measure has been invoked so far.   
   
  WT/REG109/6 
 Page 5 
 
 
  
  
Average EU Imports from MEXICO No. of HS6 lines
1,000 €  % of total by sector % of Over total % of total
(2000 - 2004) by sector  of total
ALL PRODUCTS
Total  6,510,419  100.0% 6,869  100.0%
Full liberalisation  6,386,996  98.1% 6,202  90.3%
Partial liberalisation  51,452  0.8% 316 4.6%
No liberalisation  71,970  1.1% 351 5.1%
Total  425,459  97.3% 6.5% 1,083  100.0%  15.8%
Full liberalisation  302,468  69.2% 4.6% 487 45.0%  7.1%
1  (Year 0)  264,147  60.4% 4.1% 364 33.6%  5.3%
2  (Year 3)  38,321  8.8% 0.6% 123 11.4%  1.8%
Partial liberalisation  51,292  11.7% 0.8% 250 23.1%  23.1%
3 (Year 8)  42,005  9.6% 0.6% 79 7.3% 1.2%
4 (Year 10)  9,288  2.1% 0.1% 171 15.8%  2.5%
No liberalisation  71,699  16.4% 1.1% 346 31.9%  5.0%
5 62,641  14.3% 1.0% 289 26.7%  4.2%
7 4,485  1.0% 0.1% 47 4.3% 0.7%
O Intellectual Property  4,573  1.0% 0.1% 10 0.9% 0.1%
Total  6,047,900  97.3% 92.9% 5,559  100.0%  80.9%
Full liberalisation  6,047,900  97.3% 92.9% 5,559  100.0%  80.9%
A (Year 0)  4,761,372  76.6% 73.1% 3,646  65.6%  53.1%
B   (in 2003)  1,286,528  20.7% 19.8% 1,913  34.4%  27.8%
Total  37,059  97.3% 0.6% 227 100.0%  3.3%
Full liberalisation  36,628  96.2% 0.6% 156 68.7%  2.3%
1  (Year 0)  9,538  25.0% 0.1% 24 10.6%  0.3%
2  (Year 3)  27,091  71.1% 0.4% 132 58.1%  1.9%
Partial liberalisation  160 0.4% 0.0% 66 29.1%  1.0%
3 (Year 8)  15 0.0% 0.0% 3 1.3% 0.0%
4 (Year 10)  1 0.0% 0.0% 2 0.9% 0.0%
4a (Year 9)  144 0.4% 0.0% 61 26.9%  0.9%
No liberalisation  271 0.7% 0.0% 5 2.2% 0.1%
5 247 0.6% 0.0% 1 0.4% 0.0%
6 7 0.0% 0.0% 3 1.3% 0.0%
7 18 0.0% 0.0% 1 0.4% 0.0%
DGTRADE/E.Schwarzenbrunner 16/12/05    
 
0
 FISHSECTOR  No.
AGRICULTURAL PRODUCTS
INDUSTRIAL PRODUCTSANNEX  
 
EU TARIFF LIBERALISATION BY SECTOR WT/REG109/6 
Page 6  
 
  MEXICAN MISSION TO THE EU
Average Mexican Imports from EU N° of HS 6 Lines
€ % of total by sect o% of Over total % of total
(2000 - 2004) by sector of total
ALL PRODUCTS
Total 17,123,427,103 100.0% 5,220 100.0%
Full liberalisat 9,262,789,544 54.1% 2,908 55.7%
Partial liberali s 7,529,079,184 44.0% 2,068 39.6%
No liberalisati o 331,558,375 1.9% 228 4.4%
AGRICULTURAL PRODUCTS
Total 784,289,812 97.3% 4.5% 677 58.2% 5.7%
Full liberalisat 329,744,358 40.9% 1.9% 337 29.0% 6.5%
1  (Year 0) 298,801,720 37.1% 1.7% 279 24.0% 5.3%
2  (Year 3) 30,942,639 3.8% 0.2% 58 5.0% 1.1%0
Partial liberali s 123,752,935 15.4% 0.7% 119 10.2% 1.0%
3 (Year 8) 97,449,666 12.1% 0.6% 82 7.1% 1.6%
4 (Year 10) 2,884,311 0.4% 0.0% 27 2.3% 0.5%
4a (Year 9) 23,418,959 2.9% 0.1% 10 0.9% 0.2%0
No liberalisati o 330,792,519 41.0% 1.9% 221 19.0% 4.2%
5 323,989,098 40.2% 1.8% 217 18.7% 4.2%
7 6,803,420 0.8% 0.0% 4 0.3% 0.1%
INDUSTRIAL PRODUCTS
Total 16,329,036,759 97.3% 92.8% 4,423 41.8% 84.7%
Full liberalisat 8,925,179,168 53.2% 50.7% 2,496 23.6% 47.8%
A (Year 0) 7,035,582,233 41.9% 40.0% 1,771 16.7% 33.9%
B   (in 2003) 773,532,939 4.6% 4.4% 248 2.3% 4.8%
B+ (in 2005) 1,067,505,319 6.4% 6.1% 475 4.5% 9.1%
1/ (Preferential 48,558,676 0.3% 0.3% 20 . 0 % 0.0%0
Partial liberali s 7,403,857,591 44.1% 42.1% 1,927 18.2% 36.9%
C   (in 2007) 5,213,308,984 31.1% 29.6% 1,906 18.0% 36.5%
C 5/ 60,023,551 0.4% 0.3% 10 . 0 % 0.0%
CO 183,679 0.0% 0.0% 30 . 0 % 0.1%
2/ (special red u 1,103,123,964 6.6% 6.3% 15 0.1% 0.3%
4/ (gradual Re d 1,027,217,413 6.1% 5.8% 20 . 0 % 0.0%
FISH
Total 10,100,532 97.3% 0.1% 120 79.5% 2.3%
Full liberalisat 7,866,018 75.8% 0.0% 75 49.7% 1.4%
1  (Year 0) 4,597,064 44.3% 0.0% 55 36.4% 1.1%
2  (Year 3) 3,268,954 31.5% 0.0% 20 13.2% 0.4%
Partial liberali s 1,468,658 14.1% 0.0% 22 14.6% 0.4%
3 (Year 8) 57,626 0.6% 0.0% 2 1.3% 0.0%
4 (Year 10) 510,834 4.9% 0.0% 4 2.6% 0.1%
4a (Year 9) 900,198 8.7% 0.0% 16 10.6% 0.3%
No liberalisati o 765,856 7.4% 0.0% 7 4.6% 0.1%
5 14,220 0.1% 0.0% 2 1.3% 0.0%
6 751,636 7.2% 0.0% 5 3.3% 0.1%SECTORNo.
  
   WT/REG109/6
 Page 7 
EVOLUTION OF EU IMPORTS AND EXPORTS (2001-2005)
(Mio euro)
Harmonized System
Harmonized System EU Imports from …  Mexico EU Exports to …  Mexico
Sections: 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
TOTAL 7,710  6,540  6,512  6,872  8,964  15,301  15,296  14,371  14,705  16,730  
of which
I. Live animals; animal products……………………… … 71  91  67  67  62  156  137  124  123  114  
II. Vegetable products……………………………………… … 237  185  200  190  185  60  136  52  67  58  
III. Animal or vegetable fats and oils…………………  4  3  9  12  10  19  28  29  39  32  
IV. Prep foodstuffs; beverages, tobacco ………… … 185  204  166  157  244  391  432  416  342  389  
V. Mineral Products…………………………………………… … 1,553  1,538  1,340  1,689  2,454  154  218  144  200  528  
VI. Products of the chemical…………………………… … 586  559  526  534  597  2,189  2,173  2,188  2,319  2,459  
VII. Plastics; rubber…………………………………………… … 162  127  167  199  177  549  602  594  586  723  
VIII. Raw hides and skins, leather …………………… … 28  22  20  9  10  67  74  58  54  60  
IX. Wood and articles of wood; cork………………… … 2  2  2  1  2  26  32  37  41  44  
X. Paper or paperboard………………………………………  72  55  38  23  35  412  447  419  414  442  
XI. Textiles and textile articles………………………… … 91  102  96  96  92  421  521  477  454  496  
XII. Footwear……………………………………………………… … 9  6  6  7  13  58  82  68  50  44  
XIII. art of stone plaster cement……………………… … 60  50  37  38  40  217  256  222  214  226  
XIV. Pearls; precious stones and metals………… … 113  59  63  55  44  96  119  106  90  90  
XV. Iron and steel, base metals and art.………… … 203  145  150  178  437  968  1,125  997  1,254  1,565  
XVI. Mach., elect.equip………………………………………  2,889  2,340  2,131  2,048  2,190  6,014  4,827  5,075  5,260  5,422  
XVII. Transport equip, aircraft, ship………………… … 946  562  911  821  947  2,574  3,067  2,394  2,160  2,760  
XVIII. Optic photo cine precision instr………………  234  282  408  566  1,171  507  549  561  545  584  
XIX. Arms and ammunition………………………………… … 1          11  14  12  21  17  
XX. Miscellaneous manufactured articles…………  68  63  51  57  63  225  254  214  254  314  
XXI. Works of art, collectors’ pieces…………………  2  2  1  6  46  4  3  4  3  5  
other…………………………………………………………………… … 193  142  122  119  147  181  201  178  215  358  
World excluding Intra-EU trade and European Union: 25 members.WT/REG109/6 
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  MEXICO
EU25 imports 2000 2001 2002 2003 2004 2002-2004
Agri. Products  [ mio € ] 317.0 317.4 285.9 279.7 280.3 282.0
TOTAL   All   Commodities  [ m 6,523 6,820 5,865 6,119 6,500 6,161
Agri/TOTAL 4.9% 4.7% 4.9% 4.6% 4.3% 4.6%
EU25 exports 2000 2001 2002 2003 2004 2002-2004
Agri. Products  [ mio € ] 383.5 434.7 485.4 369.8 435.0 430.1
TOTAL   All   Commodities  [ m 13,025 13,762 13,493 13,446 13,769 13,569
Agri/TOTAL 2.9% 3.2% 3.6% 2.8% 3.2% 3.2%
EU25 imp + exp 2000 2001 2002 2003 2004 2002-2004
Agri. Products  [ mio € ] 700.5 752.1 771.3 649.5 715.3 712.0
TOTAL   All   Commodities  [ m 19,548 20,582 19,357 19,565 20,270 19,731
Agri/TOTAL 3.6% 3.7% 4.0% 3.3% 3.5% 3.6%
lines agri CN 2005 1761
duty free 612
% duty free 34.8%
Imports EU25 2000 2001 2002 2003 2004 2002-2004
Agri. Products  [ mio € ] 317.0 317.4 285.9 279.7 280.3 282.0
Agri. Products Cat 5  [ mio € ] 6.3 5.7 3.8 3.2 3.0 3.3
1.98% 1.78% 1.33% 1.13% 1.07% 1.18% 
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