WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 94 
 
 
IV. TRADE POLICIES BY SECTOR 
(1) OVERVIEW  
1. During the review period, Mexico continued to  pursue the reform process aimed at linking the 
agricultural sector more closely to the market.  Th ere were fewer trade-distorting interventions and 
transfers to producers were made more efficient,  but price support and production-related payments 
continue to account for more than half the aid provided for producers.  According to the OECD, the producer support estimate (PSE) has increased cons iderably since 2004 but remains relatively low 
when compared with the average fo r the OECD countries.  Nevertheless, further reforms appear to be 
needed in order to facilitate the reallocation of r esources and bring about a sustainable increase in the 
sector's productivity. 
2. Mexico undertook to grant tariff quotas under the WTO for various agricultural products, 
although most were reserved for specific countries.  For a large proportion of products, WTO quota allocation procedures were not defined in 2007.  In  practice, the products concerned are imported in 
larger quantities and under better access conditions , albeit under unilateral quotas or preferential 
agreements.  Partly due to the coexistence of di fferent kinds of quotas, their administration is 
complicated and not very transparent.  Moreover, in the allocation of the WTO quota for powdered 
milk and the unilateral quotas for yellow a nd white maize domestic purchase and consumption 
requirements are imposed.  Mexico sent the WTO its last quota notification, covering the period 1996-1999, in January 2001. 
3. The manufacturing sector has played a key ro le in Mexico's deve lopment and in its 
integration into the world economy thanks, in particul ar, to its incorporation into the North American 
production networks.  In recent years, the sector has lost some of its former momentum, due both to cyclical factors and to increasing competitive pr essures in the world economy.  Aware of these 
challenges, the authorities are contemplating struct ural reforms that would make it possible, among 
other things, to improve the competitiveness of the productive chains, particularly those with greater 
value added.  Given the large scale and dive rsification of the Mexican manufacturing sector, 
horizontal measures to increase productivity and mini mize the distortions created by incentives would 
be more appropriate than sectoral approaches. 
4. The energy sector has increased its contribution to exports and is of crucial importance for the 
public finances (see Chapter I).  Under the Constitution, it is the State that must exploit hydrocarbons, as well as generate and distribute electrical energy fo r public use.  A heavy tax burden and consumer 
subsidies have resulted in both the State oil company, PEMEX, and the State companies in the 
electrical sector finding it increasingly difficult to finance the necessary investment.  It would 
therefore seem essential to carry ou t structural reforms in both the hydrocarbon and electricity sectors 
to ensure their financial viability and increase ope rator efficiency, as well as to improve Mexico's 
supply of energy resources. 
5. In the services sector, Mexico has adopted  specific commitments in 11 of the 
12 GATS sectors.  It has also participated in the post-Uruguay Round negotiations on basic telecommunications  and financial services, unde rtaking to abide by the reference paper on 
telecommunications.  Within the framework of th e Doha Round negotiation s Mexico submitted an 
initial offer in 2003 and a revised offer in 2005.  In many cases, the provisions of the Mexican legislation relating to access to the services market  are considerably more favourable than the 
commitments made by Mexico under the GATS.  Accordingly, Mexico could increase the 
predictability of its investment regime by elimin ating these differences, which would also result in a 
more uniform treatment as between prefer ential partners and other WTO Members. Mexico WT/TPR/S/195/Rev.1 
 Page 95 
 
 
6. The telecommunications sector has grown faster than the rest of the economy.  At the same 
time, the level of competition in the sector continues to be limited and, consequently, services are expensive.  The historical operator, TELMEX, c ontinues to occupy a dominant position in key 
markets and there are still difficulties with interc onnection between operators.  The participation of 
foreign capital in telecommunications concessionaires is restricted to 49 per cent, except in mobile 
telephony where it may exceed that limit subject to authorization.  The elimination of these restrictions on investment could usefully compleme nt other efforts made by the authorities to improve 
the competitive environment. 
7. In recent years, various reforms have transfor med the Mexican financial system by improving 
its regulation and supervision.  There has also been a notable process of internationalization of 
commercial banking.  There are no restrictions on the participation of foreign capital from a signatory 
to a free trade agreement that includes a financia l services chapter in either banks or insurance 
companies.  Foreign capital from other countries may not effectively control an insurance company.  
In general, the law prohibits contr acting for insurance services with fore ign insurers if the risk can be 
covered by a Mexican insurer. 
8. The Mexican air transport market has been dom inated by a State duopoly, but the level of 
competition has increased enormously as a result of the process of privatization of the airlines that 
formed this duopoly and the penetration of the ma rket by low-cost airlines.  The provision of 
scheduled domestic air transport services continues to  be restricted to Mexi can enterprises with not 
more than 25 per cent of foreign capital.  Foreign investment in public service airport concessionaires 
is also restricted by the establishment of a maxi mum of 49 per cent of the capital, except in cases of 
prior authorization.  The authorities consider that the Mexican air transport sector is not yet ready for 
an open skies policy. 
9. There has been considerable investment in th e modernization of Mexico's ports, but the 
authorities are aware that further progress is needed to improve port infrastructure and remove bottlenecks in multimodal transport.  Although almost  all port administrations are State-owned,  in 
practice many port services are provided by the private sector through concessions.  Foreign 
investment is restricted to a maximum of 49 pe r cent of the capital of shipping companies that 
commercially operate vessels intended for inland waterway navigation and cabotage.  Although 
almost all international maritime transport is  handled by foreign shipping companies, their 
participation is only allowed if the company's c ountry of origin grants Mexico reciprocity. 
10. To practise a profession in Mexico it is indisp ensable to hold a licence, which has national 
validity and, among other things, requires the holde r to be in possession of a recognized diploma and 
to have completed "social service".  At national level, there are certain professional and technical 
services reserved for Mexican citizen s.  In any event, the practice of  a profession by foreigners is 
subject to the principle of reciprocity. 
(2) A
GRICULTURE  
(i) General features 
11. Between 2001 and 2006,  Mexican agricultural sector GDP (including the activities of 
agriculture, livestock farming, forestry and fishing) gr ew at a real average rate of 2.1 per cent a year.  
The contribution of the agricultural sector to total GDP fell from 5.2 per cent in 2001 to 5 per cent in 
2006.1  The structure by activity of agricultural produc tion has remained relatively stable:  in 2006, 
agriculture accounted for 64.2 per cent of agricultura l GDP (62.6 per cent in 2001);  livestock farming 
                                                      
1 Bank of Mexico and National Institute for Statistics, Geography and Data Processing. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 96 
 
 
accounted for 26.9 per cent (28.8 per cent in 2001);  forestry for 5.3 per cent (5.5 per cent in 2001), 
and fishing for 3.6 per cent (3.1 per cent in 2001).2 
12. From 2001 to 2006, employment in the sector declined from 17.5 per cent of the total 
gainfully employed population to 14.3 per cent, main ly as a result of the rural exodus and the growth 
of non-agricultural activities in rural communities.3 
13. In 2006, the value of agricultural productio n was estimated at some 216.77 billion pesos 
(about US$20 billion);  grain and oilseed production accounted for about 30 per cent of the total, 
followed by vegetables (20.4 per cent) and fruit (16.7 per cent).  Maize for human consumption 
continues to be the main staple product, accounting for 18.9 per cent of the total value of agricultural 
production, followed by sugar cane (8 per cent), fo dder (5.8 per cent), tomatoes (5.3 per cent) and 
avocadoes (3.9 per cent).4  In 2006, the value of livestock production amounted to 192.014 billion 
pesos (about US$18 billion).5 
14. In 2006, Mexican exports of agricultural products (WTO definition) amounted to 
US13.362 billion (a 76 per cent increase over 2001).6  The main export products include fresh fruit 
and vegetables, food preparations  and beverages, especially beer , tequila and canned products.  
Mexico is a net importer of agricultural products ;  the total values of imports of these products 
amounted to US$16.261 billion in 2006.  The main agricultural imports include maize, soya, beef, 
wheat, cotton, oilseeds, pork, and milk in powder. 
(ii) Policy objectives  
15. From 2001 to 2006, Mexico's agricultural policy, overseen by SAGARPA, pursued the 
objectives of the Sectoral Programme for Agricultu re, Livestock, Rural Development, Fishing and 
Food (2001-06), namely, to produce food that is h ealthy for the consumer and profitable for the 
producer;  to produce quality non-food goods for the end markets;  to step up the development of the 
rural communities;  and to preserve and improve the environment.7  The National Development Plan 
for 2007-12 establishes similar objectives, including  improving the income of agricultural producers 
through increased exports, value-added processes and the production of bio-energy crops.  In 
October 2007, the corresponding sectoral pr ogramme had not yet been published. 
16. In April 2003, the Federal Government concl uded with various farmer s' organizations the 
Acuerdo Nacional para el Campo  – ANC ( National Agreement for the Countryside) for the purpose of 
introducing a series of measures to promote agricultural development.8  The Agreement was also 
intended as a response to the concerns of some gr oups of producers regarding the liberalization of 
trade in most agricultural products within the NAFTA framework.  In this Agreement, the 
Government undertook, among other things, to:  en sure the effective implementation of the trade 
remedies established in the Mexican legislation an d the trade treaties signed by Mexico, reinforce 
                                                      
2 Ejecutivo Federal (2007), p. 11. 
3 Ejecutivo Federal (2007), p. 101. 
4 SAGARPA, Sistema de Información Agroalimentaria y Pesquera (SIAP). Estadisticas básicas  
(Agri-food and Fishing Information System. Basic St atistics).  Consulted at:  http://www.siap.gob.mx/. 
5 Ejecutivo Federal (2007). 
6 Calculated by the WTO Secretariat on the basis of United Nations Statistical Division Comtrade data. 
7 SAGARPA, Informe de Rendición de Cuentas de la Administración Pública Federal 2000-2006  
(Report on Federal Public Administration Reporting).  Part 1.  See also Programa Sectorial de Agricultura, 
Ganadería, Desarrollo Rural, Pesca y Alimentación 2001-2006  (Sectoral Programme for Agriculture, 
Livestock, Rural Development, Fishing and Food 2001-2006). 
8 National Agreement for the Countryside, published in  the Official Journal on 28 April 2003.  For an 
account of the negotiations leading to the Agreement see Morales- Moreno, I. (2004). Mexico WT/TPR/S/195/Rev.1 
 Page 97 
 
 
sanitary and phytosanitary measures in order to guarantee the quality and safety of agricultural 
products, and strengthen the developm ent bank Financiera Rural to facilitate access to credit in the 
agricultural sector. 
(iii) Agricultural support indicators 
17. The OECD's estimates indicate that, during the review period, aid for Mexican agricultural 
producers associated with government programme s (Producer Support Estimate – PSE) increased 
considerably in 2002, declined in 2003 and 2004, but increased agai n in subsequent years, reaching 
some 78,028 billion pesos (some US$7,171 billion) in 2006 (Table IV.1).  As a percentage of farm 
income, the PSE followed a similar trend, reaching 17. 4 per cent in 2006;  the latter figure is a little 
more than half the average for the OECD count ries (29 per cent for 2004-2006).  In 2006, price 
support (measured as the difference between domestic  and international pri ces) constituted 49.3 per 
cent of the PSE, input-related payments accounted for 25.3 per cent and payments for historical 
entitlements that do not establish production re quirements accounted for about 16 per cent. 
18. The figure for the Total Support Estimate (TSE) , which includes transfers from consumers 
and taxpayers and net fiscal revenue, increased signi ficantly in 2002 and 2003, decreased in 2004 but, 
like the PSE, subsequently rose to 86,569 billion pesos (some US$7,955 billion) in 2006, which 
represented 0.93 per cent of GDP.  In this latter ye ar, transfers from consumers and taxpayers were 
equivalent to 52 and 54 per cent of the TSE, respectiv ely.  The increase in support via prices largely 
explains the more than doubling of transfers from consumers between 2004 and 2006. 
19. In a recent study, the OECD pointed out that Mexico had made good progress towards 
achieving a better linkage between its agricultural sector and the market.9  The study notes that 
interventions that generate major distortions ha ve been reduced by improving the efficiency of 
transfers of income to producers and increasing tr ansparency through decentralization, while support 
for producers continues to be relatively low comp ared with the average for OECD members.  
However, the study also mentions that price suppo rt and production-related payments continue to 
account for more than half the support provided for producers.  Moreover, delays in applying such 
concepts as the "polluter pays" and "user pays" principles have postponed the benefits for the 
environment and allowed the deple tion of resources to continue;  though reduced, subsidies for water 
use are still being granted. 
Table IV.1 
Agricultural support estimates, 2001-06 
(in billions of pesos) 
Item 2001 2002 2003 2004 2005 2006a
Total value of production  305,838 305,380 336,553 377,470 380,768 408,784
Proportion of basic products subject to price support (%)b 65.8 67.2 66.5 69.4 67.6 66.6
Total value of consumption 310,546 314,825 346,777 373,715 374,201 426,365
Producer Support Estimates (PSE) 48,903 74,006 68,506 44,348 59,608 78,028
Percentage PSE (%) 15.3 23.1 18.5 10.8 14.3 17.4
General Services Support Estimates (GSSE) 6,062 6,074 9,474 9,285 10,718 9,889
Consumer Support Estimates (CSE) -44,975 -69,105 -45,465 -20,582 -30,593 -45,485
Table IV.l (cont'd) 
                                                      
9 OECD (2007a), p. 189. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 98 
 
 
Item 2001 2002 2003 2004 2005 2006a
Total Support Estimates (TSE) 51,886 77,228 74,658 51,476 67,559 86,569
Transfers from consumers 42,248 67,948 42,340 19,202 27,895 44,875
Transfers from taxpayers 17,412 15,747 39,044 38,310 46,062 47,095
Tax revenue -7,774 -6.466 -6,726 -6,036 -6,397 -5,402
Percentage TSE (share of GDP, %) 0.9 1.2 1.1 0.67 0.81 0.93
a Preliminary figures. 
b The basic products subject to price support are:  wheat, maize , other grain, coffee, tomatoes, rice, oilseeds, sugar, milk, beef, 
pork, poultry, eggs and beans. 
Source : OECD, PSE/CSE database, 2007.  Consulted at:  http://www.oecd.org/dataoecd/13/16/39579404.xls. 
20. The same study notes that the increased support for the agricultural sector  recorded in 2006 
was the result of an incre ase in price support for maize, and that  the increase in domestic prices 
exceeded the growth of world prices, adversely a ffecting Mexican consumers.  The study concluded 
that further reforms are needed in the Mexican agricultural sector to re move the trade barriers that still 
prevail and replace the more distorting subsidies with better targeted measures. 
21. In 2006, SAGARPA's budget for agricultural s upport programmes (including agricultural, 
livestock, forestry and fisheries activities) am ounted to 48,779 million pesos (about 4,483 million 
US dollars), of which 31 per cent was allocated  to the Programme of Direct Support for the 
Countryside (PROCAMPO), approximately 13 per cent to the Alianza Contigo (Alliance With You), 
and 14.5 per cent to the marketing support programmes operated by the  Apoyos y Servicios a la 
Comercialización Agropecuaria  – ASERCA (Agricultural Marketing Support and Services).10 
22. Mexico undertook, in the context of the Urugua y Round, to reduce its financial support for 
agricultural producers, in accordan ce with the definition established in the negotiations, from 
approximately 29 billion 1991 Mexican pesos, re presenting the level of Aggregate Measure of 
Support (AMS) for the base period 1986-88, to some what more than 25 billion in 2004 (at 1991 
prices).11  In Mexico's notification of domestic support commitments for the years 1999-2004, it can 
be seen that total AMS increased from 211.3 m illion pesos in 1999 to 488.7 million in 2004.12 
23. In the Uruguay Round, Mexico also agreed not  to grant export subsidies in excess of the 
amounts established in its schedule of commitments for the following products (maximum level of 
outlay in millions of US dollars in brackets):  mai ze (102.9), beans (6.1), wheat  (9.0), sorghum (13.3) 
and sugar (421.8).13  With respect to these subsidies, Mexi co submitted its latest notification to the 
WTO in 2000, indicating that it had subsidized sugar exports in 1997 and wheat exports in 1998.14  
For both products, the outlays were less than th e established commitments.  As of October 2007, no 
further notifications had been received from Mexico with respect to export subsidies for agricultural 
products. 
                                                      
10 Ejecutivo Federal, Primer Informe de Gobierno  (2007), Anexo Estadístico , p. 130. 
11 Schedule LXXVII-Mexico, part IV, section I. 
12 Figures in constant 1991 prices.  WTO document G/AG/N/MEX/13/Rev.1 of 27 March 2007. 
13 Schedule LXXVII-Mexico, part IV, section II. 
14 WTO document G/AG/N/MEX/8 of 14 September 2000 and G/AG/N/MEX/10 of 
30 November 2000. Mexico WT/TPR/S/195/Rev.1 
 Page 99 
 
 
(iv) Policy instruments 
(a) Border measures 
24. In 2007, the average MFN tariff for agricultura l products (WTO definition) was 23 per cent15 
a figure considerably higher than the average ta riff applied to non-agricultural products, which was 
9.9 per cent in the same year (Chapter III (2)(iv)). 
25. As part of the commitments assumed in the Ur uguay Round, Mexico agreed to grant tariff 
quotas for various agricultural products, including pou ltry meat, animal fats, milk in powder, cheese, 
kidney beans, potatoes, coffee, wheat, barley, ma ize, and sugar and products with a high sugar 
content.  For these products a bound in-quota tariff, in itial and final, of 50 per cent was established,  
except for milk in powder for whic h the tariff was set at 0 per cent.   The ex-quota tariffs were bound 
at considerably higher rates that had to be progressi vely reduced;  the transition period stipulated was 
1995-04 (Table IV.2).  Mexico did not undertake to increase the quota volume, except in the case of 
coffee and sugar products.16 
26. In accordance with Mexico's Schedule of Concessions, most tariff quotas include access 
rights reserved for particular countries.  For exam ple, the United States has been allocated 99.9 per 
cent of the total quota for maize;  97 per cent of that  for poultry meat;  94 per cent of that for animal 
fats;  88 per cent of that for beans;  and 75 per cent of that for cheese.  Canada has received a substantial share of the quotas for barley (49 per cen t) and wheat (28 per cent).  The balance has been 
granted to other countries.  The only products for which reserved access rights were not stipulated in 
Mexico's Schedule are coffee and sugar products. 
Table IV.2 
Multilateral tariff quotas and import volume, 2006 
(US$) 
Applied tariff Bound tariff Description 
(HS) In-quota Ex-quota In-quota Ex-quota Bound quota 
volume 
(tonnes) Total import 
volume 2006 
(tonnes)a 
Powdered milk 120,000 138,727 
04021001  0%  125.1%  0% US$ 1.044/ton but 
not<125.1%   
04022101  0%  125.1%  0% US$ 1.044/ton but 
not<125.1%   
Cheese, hard and semi-hard 9,385 31,802 
04061001  50%  125%  50% US$ 1.044/ton but 
not<125.1%   
04063001  50%  125%  50% US$ 1.044/ton but 
not<125.1%   
04063099  50%  125%  50% US$ 1.044/ton but 
not<125.1%   
04069003  50%  125%  50% US$ 1.044/ton but 
not<125.1%   
04069005  50%  125%  50% US$ 1.044/ton but 
not<125.1%   
04069099  50%  125%  50% US$ 1.044/ton but 
not<125.1%   
Table IV.2 (cont'd) 
                                                      
15 In the case of products subject to tariff quotas, only ex-quota tariffs were used to calculate the 
average tariff. 
16 Mexico's Schedule of Concessions (Schedule LXXVII-Mexico, Sections 1A1 and 1B1). WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 100 
 
 
Applied tariff Bound tariff Description 
(HS) In-quota Ex-quota In-quota Ex-quota Bound quota 
volume 
(tonnes) Total import 
volume 2006 
(tonnes)a 
Coffee;  coffee extracts, essences and concentrates 20,800 2,170 
09012101  50%  72%  50% 72%   
09012201  50%  72%  50% 72%   
09019001  50%  72%  50% 72%   
09019099  50%  72%  50% 72%   
21011101  50%  140.4%  50% US$ 0.32/kg. but 
not<140.4%   
Meat and edible offal 40,543 255,014 
02071403  50%  234%  50% US$ 1.512/ton but 
not<234%   
02071404  50%  234%  50% US$ 1.512/ton but 
not<234%   
02071499  50%  234%  50% US$ 1.512/ton but 
not<234%   
02072601  50%  234%  50% US$ 1.512/ton but 
not<234%   
02072602  50%  234%  50% US$ 1.512/ton but 
not<234%   
02072699  50%  234%  50% US$ 1.512/ton but 
not<234%   
02072703  50%  234%  50% US$ 1.512/ton but 
not<234%   
02072799  50%  234%  50% US$ 1.512/ton but 
not<234%   
02073599  50%  234%  50% US$ 1.512/ton but 
not<234%   
02073699  50%  234%  50% US$ 1.512/ton but 
not<234%   
Animal fats 39,623 70,232 
02090001  50%  254%  50% US$ 837/ton but 
not<254%   
02090099  50%  254%  50% US$ 837/ton but 
not<254%   
15010001  50%  254%  50% US$ 837/ton but 
not<254%   
15161001  50%  254%  50% US$ 837/ton but 
not<254%   
Potatoes, fresh or frozen 8.340 52.973 
07019099  50%  245%  50% US$ 318/ton but 
not<245%   
Beans, except for seed 56,500 129,085 
07133302  50%  125.1%  50% US$ 360/ton but 
not<125.1%   
07133303  50%  125.1% US$ 360/ton but 
not<125.1% US$ 360/ton but 
not<125.1%   
07133399  50%  125.1% US$ 360/ton but 
not<125.1% US$ 360/ton but 
not<125.1%   
Wheat 604,612 3,446,634 
10011001  50%  67%  50% US$ 90/ton but 
not<67%   
10019001  50%  67% US$ 90/ton but 
not<67% US$ 90/ton but 
not<67%   
10019099  50%  67%  50% US$ 90/ton but 
not<67%   
Table IV.2 (cont'd) Mexico WT/TPR/S/195/Rev.1 
 Page 101 
 
 
Applied tariff Bound tariff Description 
(HS) In-quota Ex-quota In-quota Ex-quota Bound quota 
volume 
(tonnes) Total import 
volume 2006 
(tonnes)a 
Barley     4,742 77,751 
10030002  50%  115%  50% US$ 144/ton but 
not<115.2%   
10030099  50%  115.2%  50% US$ 144/ton but 
not<115.2%   
Maize      2,501,000 7,567,058 
10059003  50%  194%  50% US$ 185/ton but 
not<194%   
10059004  50%  194%  50% US$ 185/ton but 
not<194%   
10059099  50%  194%  50% US$ 185/ton but 
not<194%   
Sugar and products with a high sugar content 183,800 430,242 
17022001  15%  15%  50% 0.18 dol/kg. but 
not<78.3%   
17023001  15%  15%  50% 0.29 dol/kg. but 
not<117%   
04029901  50%  15% + 
US$ 0.36/kg.  50% 0.18 dol/kg. but 
not<78.3%   
04029999  50%  20% + 
US$ 0.36/kg.  50% US$ 0.18/kg. but 
not<78.3%   
18062099  50%  20% + 
US$ 0.36/kg.  50% US$ 0.216/kg. but 
not<94%   
18063201  50%  20% + 
US$ 0.36/kg.  50% US$ 0.216/kg. but 
not<94%   
18069001  50%  20% + 
US$ 0.36/kg. US$0.252/kg. but 
not<94% US$ 0.252/kg. but 
not<94%   
18069002  50%  20% + 
US$ 0.36/kg. US$ 0.252/kg. but 
not<109% US$ 0.252/kg. but 
not<109%   
18069099  50%  20% + 
US$ 0.36/kg.  50% US$ 0.216/kg. but 
not<94%   
19019003  50%  10% US$ 0.252/kg. but 
not<109% US$ 0.252/kg. but 
not<109%   
19019004  50%  10% US$ 0.252/kg. but 
not<109% US$ 0.252/kg. but 
not<109%   
19019005  50%  109% US$ 0.252/kg. but 
not<109% US$ 0.252/kg. but 
not<109%   
19019099  50%  20% + 
US$ 0.36/kg.  50% US$ 0.252/kg. but 
not<109%   
21011101  50%  104%  50% US$ 0.32/kg. but 
not<140.4%   
21012001  50%  20%  50% US$ 0.32/kg. but 
not<140.4%   
21039099  20%  20%  50% US$ 0.27/kg. but 
not<117%   
21069001  15%  15%  50% 22.5%   
21069002  50%  15% + 
US$ 0.36/kg.  50% US$ 0.165/kg. but 
not<71%   
22029001  10%  10%  50% US$ 0.108/kg. but 
not<47%   
22029002  20%  20% US$ 0.108/kg. but 
not<47% US$ 0.108/kg. but 
not<47%   
22029003  50%  20% US$ 0.108/kg. but 
not<47% US$ 0.108/kg. but 
not<47%   
Table IV.2 (cont'd) WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 102 
 
 
Applied tariff Bound tariff Description 
(HS) In-quota Ex-quota In-quota Ex-quota Bound quota 
volume 
(tonnes) Total import 
volume 2006 
(tonnes)a 
22029004  50%  20% US$ 0.108/kg. but 
not<47% US$ 0.108/kg. but 
not<47%   
22029099  50%  20% + 
US$ 0.36/kg.  50% US$ 0.108/kg. but 
not<47%   
a The total import volume includes imports unde r both unilateral and preferential quotas. 
Source : Compiled by the WTO on the basis of information pr ovided by the Mexican Ministry of the Economy and 
Schedule LXXVII-Mexico. 
27. Mexico's last WTO notification concerning tari ff quota administration and imports, covering 
the period 1996-99, was s ubmitted in January 2001.17 
28. The Ministry of the Economy administers import quotas under a certification system, in 
accordance with Article 24 of the Foreign Trad e Law (1993) which lays down the following 
allocation procedures:  competitive bidding;  procedures in accordance with the international treaties 
signed by Mexico;  or any other justified procedure established by the Ministry after consulting the Foreign Trade Commission.  On the basis of this pr ovision, the Ministry of the Economy has opted for 
direct allocation in accordance with the "first come , first served" principle for allocating WTO tariff 
quotas.  In the case of milk in powder, up to 2005 , a combined mechanism of direct allocation and 
competitive bidding was used, whereas since 2006 only direct allocation has been employed (see 
below).  Quota certificates are nominative and non-transferable. 
29. The requirements and procedures for allocating quotas are published annually in the Official 
Journal.  The Decision announcing the mechanism for allocating tariff quotas established within the 
framework of Mexico's WTO commitments for 2007 was published in January of that year.
18  
However, as distinct from the similar instrument  that established the quota allocation procedure for 
2006, the 2007 Decision only establishes tariff quotas fo r coffee and cheese.  Th e Decision stipulates 
that, in accordance with the Forei gn Trade Law, allocations will be made on a "first come, first 
served" basis. 
30. Apart from the case of coffee and cheese, in October 2007 the WTO quota allocation 
procedures for that year had not yet been established. 
31. In practice, the WTO quotas have not been used since the products concerned can be 
imported on better conditions of access under bilateral agre ements;  this applies, inter alia , to barley, 
maize and wheat.  In other cases, the ex-quota applied tariff is less than or equal to the in-quota 
applied tariff, which makes the administration of these quotas unnecessary. 
32. The authorities have also pointed out that in order to supplement the domestic supply and 
avoid adverse effects on the agri-food chain, unilate ral quotas with tariffs lower than those established 
in Mexico's WTO Schedule of Concessions have been  opened.  According to the data provided by the 
Mexican authorities, in 2006 total imports (incl uding under preferential and unilateral quotas) of 
products subject to tariff quotas within the fra mework of the WTO substantially exceeded the 
quantities specified in Mexico's commitments (Table IV.2) 
                                                      
17 WTO document G/AG/N/MEX/11/Rev.1 of 25 January 2001. 
18 Decision announcing the tariff quota allocation mechanism for imports in 2007, with the preferential 
tariffs established within the framework of Mexico's WTO commitments, published in the Official Journal on 1 January 2007. Mexico WT/TPR/S/195/Rev.1 
 Page 103 
 
 
33. With regard to milk in powder, quota allocati on is governed by specific provisions, the latest 
updating of which was circulated in a 2007 Decision.19  In accordance with this Decision and the 
Federal Revenue Law20, in 2007, the tariff quotas for milk in powder bound in the WTO were 
allocated as follows:  50 per cent was granted direc tly to the State-owned enterprise LICONSA for its 
programme for supplying milk at preferential pr ices to lower-income groups, and the remaining 
50 per cent was allocated directly to private ente rprises that use powdered milk in their production 
processes. 
34. Altogether, 81 per cent of the powdered milk quota reserved for the private sector was subject 
to the satisfaction of domestic purchase and cons umption requirements.  To obtain duty-free quotas 
enterprises had to show, through an audit of their dairy material consumption (liquid milk, powdered 
milk and other milk solids), that the proportion of  imported powdered milk did not exceed 30 per cent 
of total consumption in 2006.  Moreover, app licants had to make domestic milk purchase 
commitments for 2007 and register them with the Mi nistry of the Economy.  The rest of the tariff 
quota (19 per cent) was allocated to enterprises  that had not satisfied the above-mentioned 
consumption requirement.  Apparently, these arrange ments were made in response to difficulties in 
marketing and placing surplus domestic liquid milk experienced in recent years. 
35. In this connection, the authorities have not ed that the purchase commitments are buying 
intentions for the year, which each enterprise estab lishes in accordance with its supply requirements 
and strategic planning.  They have also pointed  out that these commitmen ts, like the consumption 
requirements, are only used as a reference fo r making the corresponding estimates and do not 
constitute a condition for the allocation of quotas. 
36. In the case of yellow maize, if satisfying the domestic demand means importing quantities 
that exceed the minimum duty-free quotas specified in the FTAs signed by Mexico, the Ministry of 
the Economy and SAGARPA establish additional import quotas and determine the tariff applicable.  
The additional quotas are allocated through a mechanism based on domestic grain purchase 
commitments as a function of previous consumpti on and vary depending on whether the applicant is 
an industrial consumer or belongs to the livestock and balanced feed sector. 
37. With respect to white maize, the Federal Executive establishes a tariff of not less than 
18.2 per cent for those imports that exceed the NAFTA minimum quota.  In 2007, import quotas were authorized in certain states of the Republic in which a domestic shortage was shown to exist.  The 
prerequisite for the authorization of minimum import quotas for the second half of 2007 was the 
conclusion of a purchase or agriculture contract per domestic crop contract from the previous cycle. 
38. Mexico also applies tariff quotas for imports of  certain agricultural products from countries 
with which it maintains free trade agreements, with  the exception of imports from Bolivia, Colombia, 
El Salvador and the EFTA countries.  The products included in these quotas vary from one preferential regime to another.  Within the NAFTA framework, all tari ff quotas and tariffs on 
agricultural products relating to imports from th e United States will be abolished as from 2008. 
                                                     
 
19 Decision announcing the minimum quota for importing, in 2007, duty-free, powdered milk 
originating in Members of the WTO, published in the Official Journal on 23 January 2007 and amended on 
11 May 2007. 
20 Transitional Article 10 (IV) of the Federation Reve nue Law for Fiscal Year 2007, published in the 
Official Journal on  27 December 2006. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 104 
 
 
(b) Domestic support measures 
39. One of the most important means of providing  domestic support for agriculture continues to 
be the Programme of Direct Support for the Countryside (PROCAMPO), instituted in 1994.  The programme provides for direct payments per hectar e to producers who during a base period prior to 
the implementation of the programme grew maize, beans, wheat, rice, sorghum, soybeans, cotton, 
safflower, or barley, on condition that the land cont inues to be used for agricultural production or for 
an environmental protection programme.  Payment is  based on the area planted during the base period 
rather than on the marketing of the product, which enables subsistence farmer s to benefit from this 
support. 
40. Since 2001, in order to grant preferential treat ment to lower-income producers, holdings with 
an area of less than one hectare receive PROC AMPO support corresponding to a full hectare and, 
since 2002, farmers have been able to receive  in a single advance payment the corresponding 
payments up to 2008, provided that they develop a viable project for invest ment in agricultural, 
forestry or fishing activities.  Initially, PROCAMPO  was to have ended in January 2008, but the 
National Development Plan for 2007-12 provides for it to continue until 2012. 
41. During the period 2002 to 2006, the area cultivat ed and the number of farmers benefiting 
from PROCAMPO remained relatively st able, on average 13.0 million hectares and 
2.6 million farmers.  Total PROCAMPO paymen ts increased from 11.85 billion pesos (some 
US$1,149 billion) in 2002 to a little over 15 bil lion pesos (some US$1,379 billion) in 2006.
21 
42. The Alianza para el Campo  (Alliance for the Countryside), established in 1996 for the 
purpose of promoting technological development and agricultural productivity, was redesigned in 
2003 to give rise to the Alianza Contigo  (Alliance With You), which packages together numerous 
programmes, including investment subsidies,  agricultural services and rural development 
programmes.  The Alianza  promotes the development of agro-businesses through capitalization, the 
strengthening of product-systems and technology tr ansfer, with a view to boosting farmers' incomes 
and diversifying the sources of rural employment. 
43. Preliminary data for 2007 indicate that federal resources destined for Alianza Contigo  
programmes amounted to 8,852 billion pesos (s ome US$823 million), a figure in excess of the 
6,438 million pesos (some US$624 million) allocated to this programme in 2002.22  Total budgetary 
resources (federal and state) allocated to the main Alianza Contigo  programmes and subprogrammes 
for 2006 amounted to 8,365 billion pesos (some US$ 778 million), distributed as follows (percentage 
of total budget in brackets):  crop farming (28.8), livestock farming (14.1), rural development (33.1), 
health and agri-food safety (14.5), and fishing and other (9.6).23  Out of the total for crop farming, 
63.4 per cent corresponded to investment promotion a nd capitalization, 17.9 per cent to research and 
technology transfer, 2.6 per cent to the strengtheni ng of product-systems, and 16 per cent to other 
programmes.  Out of the total for livestock farming, 83.1 per cent corresponded to livestock 
development, 11.9 per cent to the development of in tegrated agricultural projects, and 4.9 per cent to 
other programmes. 
44. Apoyos y Servicios a la Comerci alización Agropecuaria – ASERCA  (Agricultural Marketing 
Support and Services) is the Federal Government agency responsible for supporting the marketing of agricultural products, as well as for operating th e PROCAMPO programme.  Since 2001, ASERCA 
has provided support for producers through direct pa yments per ton marketed.  In 2003, Mexico 
                                                     
 
21 Ejecutivo Federal (2007), p. 143. 
22 Ejecutivo Federal (2007), p. 146. 
23 Ejecutivo Federal (2007), p. 147. Mexico WT/TPR/S/195/Rev.1 
 Page 105 
 
 
implemented the Programme of Direct Marketing Surpluses Support for the Producer for the 
Reorganization of Production, In tegration of Agri-food Chains a nd Critical Factor Management, 
composed of various subprogrammes intended to prom ote marketing and integration into the market.  
The main measures include support for risk ma nagement, crop conversi on and pledge schemes. 
45. As part of this programme the Supplementary  Support for Target Income subprogramme was 
introduced.  This involves making a direct transfer  to the producer in order to guarantee him a 
minimum income per ton marketed.  The "supplementa ry support" granted is equal to the difference 
between the market price and the target income, if  the former is lower than the minimum target 
income.  This programme provides national covera ge and the eligible crops are maize, wheat, 
sorghum, triticale, rice, soybeans, safflower, canola, and cotton. 
46. Between 2001 and 2006, the total support grante d by ASERCA for agricultural marketing 
averaged 5,607 billion pesos a year, reachin g a maximum of 6,961 billion pesos (some 
US$657 million) in 2006.  This support was dist ributed as follows (percentages in brackets):  
Supplementary Support for Target Income (64.5), financial coverage (13. 0) and other marketing 
schemes (22.5).24 
47. The livestock programme PROGAN, introduced in 2 003, grants direct payments to producers 
(depending on the head of cattle) to fund the profitability of beef cattle farms and promote 
improvements in infrastructure and the purchase of modern equipment and tec hnology.  For 2006, the 
programme received a budget appropriation of  approximately 2 billion pesos (some 
US$189 million).25 
48. Under the Rural Energy Law (2002), low-inco me agricultural producers benefited from a 
special electricity subsidy and preferential pri ces for diesel used in crop and livestock farming 
machinery and equipment. 
49. Historically, Mexican farmers have had difficulty obtaining access to credit due, among other 
things, to the underdevelopment of the agricultural financing system.26  During the review period, 
institutional changes have been introduced and new financing arrangements designed to overcome 
these difficulties have been promoted.  At the begi nning of 2000, the main financial institutions 
serving this market included Banco de Desarrollo Rural (Banrural)  and the Fideicomisos Instituidos 
en relación con la Agricultura – FIRA  (Trust Fund for Agriculture).  Banrural offered loans to 
producers at below-market rates;  in 2003, after experiencing serious financial difficulties, it was 
replaced by Financiera Rural , which also grants direct loans to producers, but at market rates, and 
provides other financial services.27  In 2005, the financing granted by Financiera Rural  amounted to 
12,669 billion pesos (US$1,176 billion).28 
50. FIRA continues operating and channelling resources through th e commercial banking system 
and the development banks and, more recently, throu gh rural financial intermediaries, the creation of 
which has been encouraged for the purpose of extendi ng the coverage of the financial system to the 
                                                      
24 Ejecutivo Federal (2007), p. 144. 
25 SAGARPA, Estado del Ejercicio Presupuestal al 31 de diciembre de 2006  (Statement for the 
Budgetary Year, 31 December 2006).  C onsulted at:  http://w ww.sagarpa.gob.mx. 
26 OECD (2006a), p. 62. 
27 World Bank (2006), p. 29. 
28 Loan granted by Financiera Rural , Statistical Annex to Sixth Government Report 2006.  WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 106 
 
 
less developed rural areas.  FIRA grants partially subsidized loans and guarantees.29  During 2005, 
FIRA channelled resources totalling 49,646 billion pesos (US$4.61 billion).30 
51. In order to make credit more accessible for small farmers, in 2003 SAGARPA instituted the  
Programme of Support for Access to the Rura l Financial System (PAASFIR) which extends 
guarantees to producer organizations that partic ipate in Investment and Contingency Funds for 
Development (FINCAS), established with public and private resources.  In 2005, the loans granted by 
FIRA and Financiera Rural  under the FINCAS programme amounted to 5,896 billion pesos 
(US$547 million).  At the end of 2005, the total lo ans granted to the agricultural and fishing sectors 
amounted to 82,335 billion pesos (US$7,645 billion) , an amount similar to that recorded in 2001.31 
52. AGROASEMEX is the Federal Government agency  responsible for developing an insurance 
system for the rural sector by encouraging private sector participation.  Up until 2001, it was issuing 
insurance at subsidized rates directly to the farm ers;  since then it has operated as a reinsurer and 
channels the agricultural insuran ce subsidy through private insurers and insurance funds.  Since 2003, 
it has offered protection against catastrophic weather events to strata of the rural population without 
access to commercial insurance schemes.  In 200 6, current subsidies granted by AGROASEMEX 
amounted to 520 million pesos (some US$49 million).32 
(3) MANUFACTURING  
(i) Main features 
53. Mexico's manufacturing sector is large and dive rsified, accounting for nearly a fifth of the 
country's GDP.  Manufactures have been a key e ngine behind Mexico's insertion into the global 
economy, manufacturing exports (WTO classification)  having made up 75 per cent of Mexico's total 
exports in 2006;  the main exports are metal pr oducts, machinery and equipment (see Chapter I (3)). 
54. A key factor fuelling Mexican manufacturing exports has been the growth of the in-bond 
maquiladora  industry, with maquiladora  exports rising from 19 to 44 per cent of total exports 
between 1985 and 2006.33  The sizable inflows of FDI have also been a significant factor (see 
Chapter I (3)).  It has also been argued that Mexi co's extensive network of free trade agreements has 
played an important role in boosting Mexican e xports.  The Mexican export basket has acquired 
higher value added, with some 72 per cent of th e country's exports in 2005 classified as high or 
medium-high by technological sophistication, up from 69 per cent in 1992.34 
55. The main drivers of the export boom are large and medium-sized firms mostly located in the 
northern and central parts of the country.  According to IADB estimates, only four states – Baja 
California, Coahuila, Chihuahua a nd Nuevo Leon – made up some 60 per cent of the country's export 
                                                      
29 World Bank (2006), p. 29. 
30 Ejecutivo Federal (2006). 
31 OECD (2006a), p. 78. 
32 SHCP, Cuenta de la Hacienda P ública Federal (2006), Estado Analítico del Capítulo 4000 
correspondiente a la SHCP  (Federal Public Treasury Report (2006) , Analytical Statement on Chapter 4000 
corresponding to the SHCP). 
33 IADB (2006), Mexico:  Sectoral Note on Trade and Integration, page 13;  and WTO Secretariat 
estimates based on INEGI, Banco de Información Económica , consulted at www.inegi.gob.mx 
34 IADB (2006), Mexico:  Sectoral Note on Trade and Integration, page 12. Mexico WT/TPR/S/195/Rev.1 
 Page 107 
 
 
growth in 1993-2003.35  In stark contrast, 16 southern states contributed only one percent to export 
growth during the period. 
56. Notwithstanding its export successes of the 19 90s, the growth of Mexico's manufacturing 
sector has been relatively lackluster since 2001.  Over the period 2001-2006, manufacturing GDP 
grew at an annual average of 0.5 per cent, below the growth of the overall economy.  The lack of 
dynamism in the manufacturing industry can be expl ained to a large extent by the overall slowdown 
in exports.  While Mexican manufacture sales to  the US market rose from 5.9 per cent of all 
US imports in 1991 to 11.2 per cent in 2001, the figure dropped to 10.3 per cent in 2006. 
57. Mexico's share of global manufacture markets we nt from 2.93 per cent of total global exports 
in 2001 to 2.39 per cent in 2006.36  On average, during the period 2004-2006 Mexican exports of 
manufactured goods increased by about 13 per cent.  However, this performance is less than that 
recorded by the growing international competition.  In this connection, the authorities have noted that 
Mexico is in the process of discussing structural reforms that should, among other things, help to 
make manufacturing more competitive and promot e productivity and conversion to sectors with 
higher value added. 
58. Mexico's uneven export performan ce can be explained both by cyclical factors and by the 
growing competitive pressures in the global economy.  First, the economic downturn at the beginning 
of this decade in the United States had a negative impact on Mexican sales.  Second, Asian countries' 
and, in particular, China's strong expansion in the global and US markets has arguably eroded Mexican share of the US market.
37  The global competitive pressures app ear to have more than offset 
the decline in real unit labour cost and recent produc tivity gains in Mexico's manufacturing sector, as 
evinced by a growth in productivity per worker and hours worked (Table IV.3). 
Table IV.3 
Productivity in the manufacturing sector in real terms (percent), 2001-06a 
Year Personnel 
employed Average real salary 
per person Average 
productivity per 
worker Average productivity 
per hour worked Real unit cost of 
labour 
2001 -4.4 6.7 0.4 0.8 6 
2002 -4.9 1.8 4.5 4.9 -2.7 
2003 -3.4 1.3 3.1 3.3 -2 
2004 -3.3 0.3 7 5.6 -6 
2005 -0.82 -0.1 1.3 0.83 -1.4 
2006b 0.23 -2.7 3.3 4.3 -5.9 
a Percentage changes reflect variations in salaries, pr oductivity and labour costs after taking account of inflation. 
b Average for first half of year. 
Source : WTO Secretariat estimates based on Ejecutivo Federal (2006), Sexto Informe de Gobierno , September, 
pp. 376-377;  and INEGI, Banco de Information Económica .  Consulted at:  www.inegi.gob.mx. 
59. The Mexican manufacturing sector is diverse.  As shown in Table IV.4, in 2006 the largest 
manufacturing industries by value added were meta l products, machinery, and equipment (31.8 per 
cent of total manufacturing);  food products, bevera ges, and tobacco (26.3 per cent);  and chemicals 
and plastics (14.2 per cent).  Between 2000 and 20 06, value added expanded most rapidly in food 
products, beverages, and tobacco (by a total of 15.2 per cent);  non-metallic mineral products, except 
                                                      
35 IADB (2006), Mexico:  Sectoral Note on Trade and Integration, pp. 14-15. 
36 WTO Secretariat estimates based on the UN Statistical Division's Comtrade database. 
37 See IADB (2006), Mexico:  Sectoral  Note on Trade and Integration. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 108 
 
 
petroleum-derived (14 per cent);  and basic metal i ndustries (8.5 per cent).  In the meantime, three 
subsectors contracted:  textiles, clothing, and l eather (21.3 per cent);  wood and wood products 
(14.5 per cent);  and paper, paper pr oducts, and publishing (3.2 per cent). 
Table IV.4 
Manufacturing industry's share of GDP, 2001-06 
(Mex$ billion, constant 1993 prices and percent) 
  2001 2002 2003 2004a 2005a 2006b 
 (Mex$ billion, constant 1993 prices)  
Food products, beverages, and t obacco 77 78.5 79. 9 82.5 84.3 86.8 
Textiles, clothing and leat her 24 22.6 21.1 21.7 21.1 20.7 
Wood and wood products 7.8 7.4 7.2 7.4 7.4 7.1 
Paper, paper products, printing and publishing 13.4 13.2 13.0 13.4 13.5 13.6 
Chemicals and plastics 44.1 44.0 44.6 46.0 46.7 46.8 
Non-metallic mineral products, except petr oleum derived 20.3 21. 0 21.1 22.0 22.5 23.5 
Basic metal industries 14.1 14.3 14.9 16.0 16.0 16.5 
Metal products, machinery and equipment 94.9 93 88.4 93.0 94.1 105 
Other manufacturing industries 9.2 8.9 8.7 9.0 9.0 9.7 
All manufacturing 304.8 302.9 298.9 311.0 314.6 329.7 
 (Index, real GDP (1993 prices), 2000=100)  
Food products, beverages, and tobacco 102 104 106 110 112 115 
Textiles, clothing and leather 91 85 80 83 80 79 
Wood and wood products 93 89 86 89 89 86 
Paper, paper products, printi ng and publishing 95 93 92 95 96 97 
Chemicals and plastics 96 96 97 100 102 102 
Non-metallic mineral products, excep t petroleum derived 98 101 102 107 109 114 
Basic metal industries 92 94 98 105 105 109 
Metal products, machinery and equipment 93 91 87 91 92 103 
Other manufacturing industries 97 94 93 96 96 103 
All manufacturing 96 95 94 98 99 104 
a Preliminary estimates. 
b Annualized estimates based on first half. 
Source : WTO Secretariat estimates based on WTO (20 02), page 99;  and Ejecutivo Federal (2006), Sexto Informe de 
Gobierno,  September, p. 375. 
60. Mexico's manufacturing sector is highly inte grated into the North American production 
networks and global supply chains.  Inter-industry trade's share of to tal trade between Mexico and the 
United States is high.  For instance, in 2006, office machinery and telecommunications equipment 
accounted for 24.6 per cent of Mexico's manufacturi ng exports (WTO product definition), while also 
accounting for 20.1 per cent of its manufacturing imports.38 
(a) The in-bond maquiladora  industry 
61. The maquiladora  industry plays a major role in the Mexican economy (for a description of 
the maquiladora  programme see Chapter III (3)(iv)).  Maquiladora  exports accounted for 
US$97.4 billion in 2005 and an estimated US$53.9 billion in 2006, or some 55 per cent of total manufacturing exports;  the industry employed 1, 166,250 workers, or nearly one third of total 
manufacturing employment (Table IV.5). 
                                                     
 
38 WTO Secretariat estimates based on data from the UN Statistical Division's Comtrade database. Mexico WT/TPR/S/195/Rev.1 
 Page 109 
 
 
Table IV.5 
Structural indicators, maquiladora industry, 2001-2006 
(US$ million, nominal pricesa) 
 Value of 
output 
(US$ 
million)b Value 
added 
(% of 
GDP) Exports 
(US$ 
million) Imports 
(US$ 
million) Exports 
(% of 
total) Imports 
(% of 
total) Inputs 
(US$ 
million) Domestic 
inputs (% 
of total) Wages 
(US$ 
million) Establish-
ments 
(number) Persons 
employed Maqui-
ladora 
empl./ 
manufact. 
empl. 
2001 65,888 3.1 76,881 57,599 48.4 34.2 42,006 3.8 8,158 3,630 1,198,942 30.8 
2002 69,351 2.9 78,098 59,296 48.5 35.2 44,603 4.1 8,113 3,003 1,071,209 29.5 
2003 76,865 2.9 77,467 59,057 47 34.6 51,717 3.5 8,404 2,860 1,062,105 30.1 
2004 90,116 2.8 88,952 67,742 46.3 34.4 62,592 3.3 9,221 2,810 1,115,230 31.8 
2005 .. 2.8c 97,401 75,679 45.5c 34.1c 66,770 3.7 10,060 2,816 1,166,250 .. 
2006 .. .. 52,888 41,219 43.1c 33.8c 29,352 3.9 4,408 2,817 1,191,554 .. 
.. Not available. 
a Estimates in US dollars made using a nominal exchange rate of 10.9 pesos to 1 US dollar. 
b Value of output includes value of inpu ts and value added by capital and labour. 
c Preliminary data. 
Source : WTO Secretariat estim ates based on Ejecutivo Federal (2006), Sexto Informe de Gobierno , September, pp. 379 
and 380;  and INEGI, Banco de Information Económica .  Consulted at:  www.inegi.gob.mx. 
62. Contrary to the late-1990s period when the maquiladora  industry's growth was exponential, 
output growth has been less striking in the past few years.  Value added in the industry grew by 7.7 per cent in 2000-2006, below the 33 per cent in the 1996-2000 period.  These trends are also 
reflected in export growth.  While maquiladora exports grew at a nearly 21 per cent per annum during 
1996-2000, the figure was only 4.2 per cent in 2000-2006.  Export expansion was more marked, however, in 2004 and 2005. 
63. Some structural changes have taken place in the maquiladora  industry in recent years.  The 
industry has concentrated somewhat, to 2,817 establishm ents from the peak level of 3,630 in 2001.  In 
the meantime, it has dispersed geographically to regi ons outside the border zone.  In part as a result, 
43 per cent of the industry's value added arose from such regions in 2005, a clear hike from 39.8 per 
cent and 28.6 per cent in 2000 and 1995, respectively.  One constant in the industry is the share of 
domestic inputs in production, which was 3.7 per cent  of all inputs used in the industry in 2005, up 
only slightly from 3.5 per cent in 2000.  This indi cates slow momentum toward establishing backward 
linkages with domestic industries, but is also indi cative of Mexico's heavy integration into North 
American and global production networks. 
(b) Policy objectives and instruments 
64. Given that Mexico already enjoys preferential ac cess to most of the main global markets and 
an unrivalled proximity to the largest market in th e world, the country's means of gaining a greater 
foothold in international trade centre on domestic, s upply-side factors.  Accordingly, the authorities 
have developed and sought to improve a num ber of programmes aimed at improving the 
competitiveness of strategic manufacturing activities, for example, through PROSECs (see 
Chapter III(4)(iii)).
39 
65. The ITA Plus  programme was adopted in 2003, with th e aim of abolishing the tariffs on all of 
the inputs used in the electronics and high-tech i ndustry.  Since Mexico's last Review, tariffs on 
                                                      
39 The Government report of October 2004 evaluating the effect of these programmes focuses on 
five sectors:  automotive industry, electronics and hi gh-tech products, textiles and clothing, footwear, and 
exports of manufactured products in general.  Ministry of the Economy (2004). WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 110 
 
 
certain fibres, threads, textiles and other products  have been reduced in efforts to foster the 
competitiveness of the textile and clothing industry;  the government has also explored the possibility 
of incorporating several products under zero tari ff in the shoe industry's PROSEC but, because of 
opposition from the related domestic  industry, was able to incorporate only the products of 
subheading 3901.30 of the Harmonized System (ethylene-vinyl acetate copolymers) under a 5 per 
cent tariff.40 
66. In 2006, the Ministry of the Economy introduced the Decree for the Promotion of the 
Manufacturing Industry, Maquiladora and Export Services (IMMEX Decree), which combines the Maquila and PITEX programmes in a single lega l instrument (see Chapter III (3)(iv)).  The 
Government has also sought to enhance Mexico 's export promotion by creating ProMexico (see 
Chapter III (3)(vi)). 
(4) E
NERGY  
(i) Main features 
67. In 2006, the energy sector contributed approxi mately 2.6 per cent to Mexico's GDP and 
15.5 per cent to total merchandise exports.41  Between 2001 and 2006 primary energy production 
grew at an annual rate of 1.7 per cent.  In 2006, it amounted to 10,619 petajoules, of which 
hydrocarbons accounted for 90 per cent, primary elect ricity for 5 per cent, biomass for 3 per cent and 
coal for the remaining 2 per cent.42 
68. Between 2001 and 2006, total investment in the en ergy sector grew at an average annual rate 
of 12 per cent, reaching a value of 192 billion pesos (U S$18 billion) in 2006.  Of the investment made 
in 2006, 78 per cent was destined for the petroleum industry and the rest for the electricity industry.  
The Government estimates that during 2007-2012 an  annual investment of about 264 billion pesos 
will be needed to ensure a reliable energy  supply, an increase of 38 per cent on 2006.43 
69. The Ministry of Energy (SENER) is respons ible, among other things, for managing energy 
policy and the activities of the sector's State-owne d enterprises, granting energy-related concessions, 
authorizations and permits, and issuing official  standards within its area of responsibility.44  It is also 
responsible for implementing government policy on attracting private capital into the sector.  In 
addition, it serves as chairman of the boards of the State-owned companies Petróleos Mexicanos  
(PEMEX) in the hydrocarbons sector and Comisión Federal de Electricidad  (CFE) and  Luz y Fuerza 
del Centro  (LFC) in the electricity sector. 
70. The task of the Regulatory Commission for Ener gy (CRE), a decentralized SENER agency, is 
to regulate activities in the natural gas, liquefied petroleum gas (LPG), and electricity sectors.  The 
Ministry of Finance and Public Credit (SHCP) incorporates the PEMEX, CFE and LFC annual budget 
and financing programme in the consolidated  annual budget, which it submits to Congress for 
approval.  Moreover, subject to seeking the opinion of the Ministry of the Economy, SHCP is 
                                                      
40 Ministry of the Economy (2004), pages 82 and 86. 
41 The data for the energy sector include the production of petroleum and its derivatives, the basic 
petrochemicals industry and the distribution of gas and electricity.  Ejecutivo Federal (2007).  Consulted at:  
http://www.informe.gob.mx/ES TADISTICAS_NACIONALES/. 
42 Energy Information System (SIE) of the Ministry of Energy.  Consulted at:  
http://sie.energia.gob.mx/. 
43 National Infrastructure Programme 2007-2012.  Consulted at:  www.infraestructura.gob.mx. 
44 Article 33 of the Law on the Organization of the Federal Public Administration of 
29 December 1976. Mexico WT/TPR/S/195/Rev.1 
 Page 111 
 
 
responsible for regulating and establishing prices and tariffs policy for crude petroleum and its 
derivatives and for electricity. 
(ii) Hydrocarbons 
71. In 2006, Mexico was the world's sixth largest crude petroleum producer.  In that year, 
production of both crude petroleum and petroleum de rivatives was 4.5 per cent higher than in 2001, 
but 3.3 per cent below the levels for 2004.45  In 2006, PEMEX produced an average of 3.3 million 
barrels of crude petroleum per day and almost 5,400 million cubic feet of natural gas per day.46  
PEMEX is Latin America's largest enterprise in te rms of sales, which amounted to 1,062 billion pesos 
in 2006 (about US$97 billion). 
72. On 1 January 2007, proven reserves of crude petroleum stood at 11,048 million barrels of 
crude oil equivalent (Mbcoe), while reserves of natural gas (including condensates and liquid gas 
obtained in processing plants) were 4,467 Mbcoe.  Both figures were a little over 50 per cent lower 
than in 2001, which is partly the result of the adoption of US Securities and Exchange Commission 
criteria in 2002.  Although the rate of decline of hydrocarbon reserves has been reduced in recent 
years, the ratio of proven reserves to production fell from 20.6 to 9.6 y ears between 2001 and 2006.47 
73. The decline in reserves and production levels is  mainly a consequence of the depletion of 
Mexico's principal oil field (Cantarell), PEMEX's lack of the financial and technological means to 
develop the majority of its potential resources (in ve ry deep waters), and the restrictions that the 
current regulatory framework imposes on the incorporation of new sources of investment. 
74. Mexico has six refineries with a total installed capacity of 1.54 million ba rrels per day, but is 
a net importer of refined petroleum products.  PEMEX is seeking to modernize its refineries and plans 
to increase their capacity by almost 50 per cent between 2007 and 2015, whic h will involve carrying 
out several projects and making the corresponding investments.48 
75. The Mexican petrochemical industry, whic h is divided into basic and secondary 
petrochemicals, has not succeeded in developing its fu ll potential.  As mentioned in Mexico's previous 
Review, despite the availability of petroleum input s, the lack of integration and the failure to 
incorporate new technology has limited development.  In order to boost investment in the secondary 
petrochemical industry (open to private investment) and revitalize the operation of the PEMEX-owned petrochemical installa tions, the National Developmen t Plan 2007-12 and the National 
Infrastructure Programme are promoting strategic al liances with the private sector, both domestic and 
foreign, to attract investment additional to that provided by the State. 
76. PEMEX's financial situation is paradoxical.  In  recent years, mainly as a consequence of high 
oil prices, PEMEX has obtained its best financial re sults ever, reporting record figures for total sales 
and tax payments (see Chapter I (2)(ii));  in 2006, gross profits
49 amounted to a little over 
US$57 billion.50  At the same time, PEMEX's tota l liabilities have increased, reaching 
                                                      
45 First Government Report of 1 September 2007.  Consulted at:  http://www.informe. 
gob.mx/2.14_ENERGIA_HIDROCARBUROS_ Y_ELECTRICIDAD/?contenido=226. 
46 PEMEX information.  Consulted at:  http://www .pemex.com/index.cfm?action=content &sectionID= 
2&catID=160&contentID=181. 
47 First Government Report of 1 September 2007.  Consulted at:  http://www.informe.gob. mx/2.14_ 
ENERGIA_HIDROCARBUROS_Y_ELECTRICIDAD/?contenido=226. 
48 Ministry of Energy (2006b). 
49 Return before interest, taxes and use. 
50 Gross profits are those before interest, taxes, depreciation and amortization. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 112 
 
 
1,165 billion pesos in 2006 (US$108 billion).51  The combination of increasing liabilities, a heavy 
fiscal burden and accumulated net losses has led to a st eady deterioration of the enterprise's assets.  At 
the end of 2005, PEMEX's assets, which had been some 123 billion pesos (approximately 
US$13 billion) in 2001, turned negative for the first tim e in its history, with only a slight improvement 
in 2006.52 
77. In 2005 and 2007 the authorities reformed PEMEX's  fiscal regime with a view to reducing the 
tax burden on its profits.53  In particular, it was decided gradually to reduce the payment that PEMEX 
has to make with respect to ordinary hydrocarbo n duty.  However, further reforms appear to be 
urgently needed to alleviate PEMEX's lack of  resources and executive capabilities, modernize its 
management, and prevent it from internalizing subsidi es.  Moreover, new forms of financing need to 
be developed to accommodate the higher levels of investment that PEMEX requires and/or more should be done to reform its fiscal regime. 
78. The main legislation regulating the hydrocarbon sector consists of Articles 25, 27 and 28 of 
the Constitution, the Law Regulating Article 27 of the Constitution in the Petroleum Sector and its 
regulations, the Basic Mexican Petroleum Law a nd its regulations, the Law on the Regulatory 
Commission for Energy, the Natural Gas Regulations  and the Liquefied Petroleum Gas Regulations.
54 
79. Under Article 27 of the Constitution, concessions  and contracts may not be granted for the 
exploitation of hydrocarbons, which must be exploi ted by the State in accordance with the terms of 
the Law regulating that article.  The Law Regula ting Article 27 of the Constitution in the Petroleum 
Sector, amended in 2006, and its regulations estab lish the petroleum industry activities for which the 
State has exclusive responsibility, through PEMEX (see Table IV.6). 
Table IV.6 
Private participation in the hydrocarbon sector 
Activity Crude oil Natural gas Liquefied 
Petroleum Gas Petrol and other 
petroleum 
derivatives Basic 
petrochemicals 
Exploration No No n.a. n.a. n.a. 
Exploitation No No n.a. n.a. n.a. 
Production/Refining No n.a. No No Nog 
Storage in oil fields and 
refineries No No No No No 
Storage (other) Yesa Yesb Yesb Yesa No 
Transport by pipeline No Yesb Yesb No No 
Transport (other means) Yesa n.a. Yesb Yesa No 
Table IV.6 (cont'd) 
                                                      
51 The total is composed of  debt (570 billion peso s), unfunded labour reserves (454 billion pesos), and 
other short-term liabilities (150 billion pesos) (approxi mately US$52, 42 and 14 million, respectively).  
Information consulted at:  http://www.pemex.com.mx/index.cfm?action=content&sectionID=2&catid= 
159&contentID=166. 
52 Figures in current pesos.  Consulted at:  http://www.pemex.com.mx/index.cfm?action=content& 
sectionID=2&catid=159&contentID=166. 
53 PEMEX Financial Performance Report 2005.  Consulted at: http://www.pemex.com.mx/index.cfm? 
action=content&sectionID=2&catid=159&contentI D=166; and SHCP Press Release No. 081 of 
16 September 2007.  Consulted at:  http://www.shcp.gob.mx/. 
54 The most recent amendments to this legislati on were published in the Official Journal on 
26 June 2006, 8 January 1990, 12 January 2006, 30 April 2001, 23 January 1998, 8 November 1995, and 28 June 1999, respectively. Mexico WT/TPR/S/195/Rev.1 
 Page 113 
 
 
Activity Crude oil Natural gas Liquefied 
Petroleum Gas Petrol and other 
petroleum 
derivatives Basic 
petrochemicals 
Distribution No Yesb Yesb, c Yes No 
Marketing No Yesb Yesb Yesc, d No 
Import/Export Noe Yesf Yesf Yesf Yesf 
n.a. Not applicable. 
a Private participation in storage and transport by means other than pipelin es is permitted after first-hand sale. 
b Private participation under a system for granting permits. c Activities reserved for Mexican nationals. 
d Through the system of  PEMEX franchises which can only purchase PEMEX-refined products. 
e The legislation does not specifically restrict the import and export of crude petroleum, but in practice these activities are  carried 
on exclusively by PEMEX. 
f Private participation under the system for granting permits. 
g If in secondary petrochemical production ba sic petrochemicals are obtained as by-products, they may be used in the same plant  
or delivered to PEMEX. 
Note: "Yes" or "No" signifies whether or not permitted by the legislation. 
Source : WTO Secretariat, based on the Mexican legislation. 
80. The private sector can play a supporting role  through works and services contracts which 
PEMEX signs with providers of goods and services, leaving hydrocarbons in the exclusive ownership 
and control of the State.  These contracts must always be remunerated in cash and neither a percentage of the products nor a share in the profits may be offered as a form of payment. 
81. There are no restrictions on the participation of foreign enterprises in works and services 
contracts concluded with PEMEX.  As an exception, under the relevant legislation
55, in international 
competitive bidding PEMEX may refuse to allow foreign firms to participate if a government procurement treaty has not been concluded with the count ry of origin of the international bidder or if 
that country does not grant reciprocal trea tment to Mexican bidders and contractors. 
82. The works and services contracts that PEMEX has most frequently concluded with the private 
sector are those under the scheme for  Projects with Deferred Impact in the Recording of Costs 
(PIDIREGAS).  These contracts re sulted in a total of 49 billion dollars of investment during 2001-
2006, and accounted for 80 per cent of tota l PEMEX investment during that period.
56  Moreover, 
under the PIDIREGAS scheme, the costs do not impact  on public finances during construction, due to 
the fact that PEMEX undertakes to purchase the ea rning assets built by the private enterprises at the 
end of the project.57  Thus, for PEMEX this scheme represents a form of indirect borrowing. 
83. PEMEX has exclusive control of the initial ph ases of exploration and e xploitation of natural 
gas, but transport, storage and distribution are op en to domestic and foreign private participation 
through the granting of permits.  As of mid-2007,  the CRE had granted private consortia, with 
domestic and foreign participation,  22 permits for the distribution of natural gas, as well as 
five storage permits and 21 transpor t permits for serving the public.58  The private sector can also 
participate in the development of the industry by  concluding Investment Agreements under Article 65 
                                                      
55 Law on Public Sector Procurement, Leases and Services and Law on Public Works and Related 
Services (see Chapter III (4)(v)). 
56 First Government Report of 1 September 2 007.  Consulted at:  http://www.informe.gob.mx/ 
2.14_ENERGIA_HIDROCARBUROS_Y_ ELECTRICIDAD/?contenido=226. 
57 Presentation of the Ministry of Finance and Public Credit 2005:  " Proyectos de participation pública 
y privada en Mexico " (Public and private participation projects in Mexico).  Consulted at:  
http://portal.sre.go b.mx/ppp/pdf/panelvunidadinvers.pdf. 
58 Ministry of Energy (2006a). WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 114 
 
 
of the Natural Gas Regulations.  Under this schem e an investor undertakes to build and commission 
the infrastructure for developing a natural gas transpor t system, and the cost of the investment can be 
recouped by collecting from users the tariffs approved by the CRE. 
84. The retail trade in petrol and other petroleu m derivatives, which can be carried on through 
PEMEX franchises, and the distribution of LPG are reserved for Mexican natural persons and 
companies, with an exclusion clause for foreigners. 
85. The production of basic petrochemical products59 is reserved for PEMEX60, whereas the 
production of other petrochemicals is not subject to  restrictions on private investment, domestic or 
foreign. 
86. The legislation gives the SHCP  exclusive authority to set hydrocarbon prices, establishing 
various procedures and schedules for this purpose.  In general, the producer price must reflect the 
opportunity cost with reference to international market prices, and the consumer price must be 
administered on the basis of criteria designed to ensure economic efficiency or prevent supply shortfalls.  The prices of natural gas, LPG, petrol  and diesel are set using methodologies that have 
resulted in subsidies for consumers of these products.  It is estimated that in 2005 subsidies cost 
PEMEX approximately 33.5 billion pesos (US$3.1 billion).
61 
87. In practice, crude petroleum is imported and exported exclusively by PEMEX.  By way of 
exception, hydrocarbons owned by third parties may be imported for processing in PEMEX refineries, but the refined products must subsequently be e xported.  Prior authorization is required for the 
importation of refined petroleum pr oducts (see Chapter III (2)(vi));  in practice, such permits are not 
being granted. 
88. The private sector may import and export natural gas and LPG, but to import LPG a permit 
must first be obtained from the ME.
62  In practice, only PEMEX, through its subsidiary 
PMI Comercio International, is authorized to im port LPG.  Where foreign trade in natural gas is 
concerned, no permit is re quired;  the authorities have noted that, at the end of 2007, the private sector 
was importing natural gas, mainly for delivery to power stations. 
(iii) Electricity 
89. Mexico's electricity generating capacity rose from 42.5 to 56.4 GW. between 2001 and 2006, 
which represents an average annual increase of 5.9 pe r cent.  In 2006, 86.6 per cent of total installed 
capacity corresponded to public service generators , including the CFE, the LFC and independent 
producers, and the rest to generators with permits for other uses.  By type of plant, public utility 
capacity can be broken down into:  thermal (incl uding coal-fired) plants, with 73 per cent, and 
hydroelectric plants, with 22 per cent, with other t ypes of plants accounting for the rest.  The use of 
natural gas has increased considerably in recent y ears, having contributed 42.6 per cent to electricity 
                                                      
59 Methane, ethane, propane, butan e, pentane, hexane, heptane, na phtha and raw material for carbon 
black. 
60 If in secondary petrochemical production basic petrochemicals are obtained as by-products, they may 
be used in the same plant or delivered to PEMEX. 
61 The breakdown of the total cost by product is as follows (billions of pesos in brackets):  LPG (4.7), 
natural gas (4.5), petrol (10.3), and diesel (13.8).  PEMEX Financial Performance Report 2005.  Consulted at:  
http://www.pemex.com.mx/index.cfm?action=cont ent&sectionID =2&catid=159&contentID=166. 
62 Natural Gas Regulations 1995 and Liquefied Petroleum Gas Regulations 1999. Mexico WT/TPR/S/195/Rev.1 
 Page 115 
 
 
generation in 2006.  This partly reflects the policy of replacing fuel oil with natural gas in power 
plants, followed by the authorities up to 2005.63 
90. According to the data supplied by the authorities,  in 2006, electricity sales amounted to some 
175,372 GWh., of which 58 per cent was consumed by industry, 25 per cent by households, 8 per cent 
by commercial establishments, 5 per cent by agriculture, and 4 per cent by services.  As the demand 
for electrical energy did not develop as expected, in  July 2007 the system had a reserve margin of 
50 per cent which, according to the authorities, re presents an underutilization of generating capacity 
and additional costs for the CFE and LFC.64 
91. In practice, the Mexican electricity sector is organized in two subsectors, sales to the public 
and private consumption. The public electricity system is dominated by the CFE, a decentralized 
State-owned entity which operates most of the generating plants and all the transmission and 
distribution network jointly with LFC.  In 2006,  the CFE purchased 26 per cent of the energy it 
distributed from the Independent Power Producers (IPPs), which almost tripled their generating 
capacity between 2002 and 2006.  At the same time, th e private sector owns the means of generating 
electrical energy for self-consumption and foreign trade.65 
92. Under Article 27 of the Constitution, the Stat e has exclusive responsibility for generating, 
transporting, transforming, distributing and supplying electrical energy as a public service.  The legislation governing the sector includes the Law of the Public Electrical  Energy Service (LSPEE) 
and its regulations and the Law on the Regulatory Commission for Energy (LCRE).
66 
93. Faced with the need to promote new invest ment and strengthen legal certainty for the 
investment already in place, in 2002 the Executive pu t forward a reform initiative for restructuring the 
electricity sector.  The initiative proposed amendm ents to the Constitution as far as it concerns 
electricity, together with a package of reforms of the LSPEE, the LCRE and other laws.  Among other 
things, it proposed:  (i) vesting the CFE with mana gerial autonomy to make it financially viable;  
(ii) strengthening the CRE and giving it new func tions, such as approving the tariff regime and 
imposing penalties for non-compliance with the legal fra mework, in order to give participants in the 
electricity sector greater legal certainty;  and (iii) converting the National Energy Control Centre into 
a decentralized entity responsible for the dispatch and exchange of electricity, capable of guaranteeing 
market participants nondiscriminatory access to the distribution networks.67  This proposal for the 
reform of the electricity sector's lega l framework was not adopted by Congress. 
94. Under the LSPEE and its regulations, by obtain ing permits issued by the CRE, the private 
sector can invest in generating plants for self-suppl y, cogeneration or small-scale production (up to 
30 MW.) or under the IPP scheme.  The latter makes it possible for the private sector to invest in 
generating plants with a capacity of  more than 30 MW. provided that the output is sold exclusively to 
CFE or exported.  Moreover, the CRE may gran t permits for generation for export and for the 
importation of electricity for own use.  With the exception of permits under the IPP scheme, which are 
                                                      
63 Statistical Annex to First Government Report of 1 September 2007.  Consulted at:  
http://www.informe.gob.mx/ES TADISTICAS_NACIONALES/. 
64 First Government Report of 1 September 2 007.  Consulted at:  http://www.informe.gob.mx/ 
2.14_ENERGIA_HIDROCARBUROS_Y_ ELECTRICIDAD/?contenido=226. 
65 Ministry of Energy (2006c). 
66 The latest amendments to this legislation were published in the Official Journal on 
22 December 1993, 24 May 2003 an d 23 January 1998, respectively. 
67 CRE, InfoCRE, July-August 2002, 5, No. 4.  Consulted at:  h ttp://www.cre.gob.mx/publica/infoCRE/ 
2002/infocre0708-02.pdf. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 116 
 
 
reserved for Mexicans and Mexican enterprises, there are no restrictions on the obtaining of these 
permits by foreign companies or individuals. 
95. In 2006, the subsidies granted by Mexico for electricity consumption amounted to 96.8 billion 
pesos (US$8.9 billion), of which 67 per cent was de stined for the domestic consumer, 15 per cent for 
industry, 8 per cent for the agricultural sector, and the rest for the commercial and services sectors.  
The data for 2006 indicate that, on average for all t ypes of consumer, consum er tariffs covered only 
75 per cent of the cost of the elect ricity supplied by the CFE and 53 per cent of the cost of that 
supplied by the LFC.68 
96. In 2006, the average tariff for the country as a whole was 1.14 pesos per kWh. (about 
US$0.10 per kWh.), while, in particular, the large i ndustries paid an average of 0.89 pesos per kWh. 
(about US$0.8 per kWh.).69  The authorities have pointed out th at electricity costs in Mexico are 
relatively high as compared with other countries beca use in Mexico most generating plants use natural 
gas or fuel oil, whose prices on the internationa l markets have risen sharply in recent years. 
97. There is foreign trade in electrical energy with  the United States and Belize.  With the former, 
trade is carried on both through public system interconnections and through private lines owned by 
permit holders.  In the case of Belize, Mexico essentially exports electricity through a single public 
system interconnection.  The amount of electricity traded, primarily with the United States, has increased since 2001 and Mexico recorded a positive net balance in 2006;  in the same year, in value 
terms, exports and imports we re estimated at US$255 million and US$46 million, respectively.
70 
(5) SERVICES  
(i) Multilateral commitments 
98. Mexico adopted specific commitments in ten of  the 12 GATS sectors, the exceptions being 
environmental services and recreational, cultural and sporting services (Table AIV.1).71  Nevertheless, 
among the ten sectors, Mexico only adopted commitm ents in two thirds of the subsectors, not 
adopting any in subsectors such as legal services, so cial services and maritime transport services.  
Mexico participated in the negotiations on basi c telecommunications and financial services that 
followed the Uruguay Round, and the corresponding co mmitments feature in the Fourth and Fifth 
GATS Protocols.72  Mexico also undertook to abide by the Reference Paper on telecommunications. 
99. Within the framework of the GATS, Mexico maintains horizontal commitments relating to 
the movement of natural persons.  In the natural persons category, it guarantees temporary entry for 
up to 90 days for those directly responsible for th e sale of a service, and the entry of executives, 
managers and specialists transferred within the sam e enterprise for an extendable period of one year. 
100. The schedule of exemptions from MFN treatment contains two specific exemptions relating 
to the tourism sector:  (i) the supply by forei gn suppliers of passenger road transport services is 
limited to vehicles registered in the United States;  and (ii) United States individuals attending 
                                                      
68 Statistical Annex to First Government Report of 1 September 2007.  Consulted at:  
http://www.informe.gob.mx/ES TADISTICAS_NACIONALES/. 
69 Statistical Annex to First Government Report of 1 September 2007.  Consulted at:  
http://www.informe.gob.mx/ES TADISTICAS_NACIONALES/. 
70 INEGI Statistical Yearbook of Foreign Trad e 2006.  Consulted at:  http://www.inegi. 
gob.mx/inegi/default.aspx. 
71 WTO document GATS/SC/56 of 15 April 1994. 
72 WTO documents WT/LET/213 of 30 January 1998 and WT/LET/288 of 18 February 1999. Mexico WT/TPR/S/195/Rev.1 
 Page 117 
 
 
business conventions receive a tax deduc tion for expenses incurred in Mexico.73  These exemptions 
from the MFN principle are of indefinite duration. 
101. Within the framework of the Doha Round ne gotiations on services, Mexico submitted an 
initial offer in 2003 and a revised offer in 2005.74 
(ii) Telecommunications 
(a) Main features and structure 
102. In 2001-2006, total income from telecommunications services  (excluding unrestricted 
television broadcasting) grew at a nominal averag e rate of 13 per cent, reaching a total value of 
277,697 billion pesos (US$25,479 billion) in 2006.75  According to the authorities, the contribution of 
the telecommunications sector to GDP increased from 3. 1 per cent in 2001 to 5.5 per cent in 2006.  
The authorities have also noted the dynamism of th e sector, which recorded 18.3 per cent real growth 
in 2006. 
103. In nominal terms, total investment in the te lecommunications sector decreased by 32 per cent 
in 2006 as compared with 2001, the year in  which investment r eached a maximum of 
US$5.75 billion.76  The OECD's comparative indicators for 2005 (latest year available) indicate that 
Mexico has the OECD's second lowest level of per capita investment, and a level of investment in 
terms of public network access points below the OECD average.77  The authorities have pointed out 
that there was a recovery in investment during the period 2003-2006, when it grew at a rate of 
44.7 per cent. 
104. The reduction in investment levels could also  reflect the limited competition in the sector, a 
situation that could discourage investment in new enterprises.  From the viewpoint of the Federal 
Telecommunications Commission (COFETEL), the slowdown in investment in the Mexican telecommunications sector is part of a global phenomenon.  For its part, the Ministry of Communications and Transport (SCT) considers that th e main factors that have led to low levels of 
investment relate to the conditions of interconnec tion between operators, and the delay in establishing 
a procedure for enabling the public telecommunications  networks that provide restricted television 
services to also offer telephony services and vice versa.   The authorities have also pointed out that the 
foreign investment regime has favoured mobile  telephony, where there are no limits on foreign 
participation, whereas in fixed telephon y there is a 49 per cent limit (see below). 
105. In 2001-06, the total number of fixed telephone lines in service per 100 inhabitants 
(teledensity) increased at an average annual rate of  6.6 per cent, which resulted in a fixed teledensity 
index of 18.9 per cent by the end of 2006.  Th e mobile telephony market continued to grow 
significantly during the same period, with the number  of mobile lines increasing at an average annual 
rate of 21 per cent, so that in 2006 the m obile teledensity index had reached 54 per cent.
78  In 2006, 
there were 19.5 Internet users per 100 inhabitants and 2.9 broadband connecti ons per 100 inhabitants, 
                                                      
73 WTO document GATS/EL/56 of 15 April 1994. 
74 WTO information.  Consulted at:  http://www .wto.org/english/tratop_e/serv_e/s_negs_e.htm. 
75 Information consulted at:  http://www.c ft.gob.mx/wb2/COFETEL/COFE_Estadisticas_de_ 
telecommunications_2. 
76 Information consulted at:  http://www.c ft.gob.mx/wb2/COFETEL/COFE_Estadisticas_de_ 
telecommunications_2. 
77 OECD (2007b). 
78 Information consulted at:  http://www.c ft.gob.mx/wb2/COFETEL/COFE_Estadisticas_de_ 
telecommunications_2. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 118 
 
 
the second lowest broadband penetra tion index among the OECD countries.79  In this connection, the 
authorities have indicated that they are expec ting an increase in broadband access as a result of the 
introduction of new technology, as well as greater participation by the cable television service 
providers. 
106. Between 2001 and 2006, the average tariff for the local residential service decreased by a 
total of 20 per cent, while the average tariff pe r minute of mobile telephony service decreased by 
approximately 60 per cent during the same period.80  However, in 2006 the tariffs charged in Mexico 
to residential and business customers for fixed a nd mobile telephony and Internet access services  
were among the highest in the OECD;  in particular , the cost of a monthly subscription for broadband 
services was the highest among the OECD countries.81 
107. As described in Mexico's previous report, the privatization of Teléfonos de Mexico 
(TELMEX) in 1990 was accompanied by a concession that will expire in 2026.  Under this 
concession TELMEX was granted exclusivity with r espect to certain services until the end of 1996, 
whereas with respect to other services the entry of new operators was authorized with immediate 
effect.  Moreover, TELMEX was required to review its tariffs to eliminate cross subsidies between 
local and long-distance services and regulations  governing interconnecti on agreements were 
established (see below). 
108. The granting of 23 concessions for local telephony, 46 for long distance (LD), 25 for mobile 
local telephony and 22 for satellite services resulted in the gradual opening up of the 
telecommunications sector.  However, the level of competition in the sector is still low, with 
TELMEX controlling approximately 92 per cent of fi xed lines, 80 per cent of LD calls, and 77 per 
cent of the mobile telephony market through Amér ica Móvil, and over 60 per cent of the Internet 
access market.82  In addition to América Móvil, Grupo Te lefónica and Grupo TV Azteca participate in 
the mobile telephony market, through their two companies Iusacell and Unefon. 
109. The open television market is a de facto duopoly between Grupo Televisa and Grupo TV 
Azteca.  Grupo Televisa also controls two of the main  Mexican restricted cable and satellite television 
companies, and new acquisitions will significantly in crease its market share.  The CFC is promoting 
measures to ensure nondiscriminatory access to th e content distributed by Grupo Televisa as a 
condition of authorizing these acquisitions. 
(b) Institutional and regulatory framework 
110. Within the framework of its specific GATS commitments, Mexico has adopted commitments 
with respect to practically all the telecommunica tions services specified in the GATS, with the 
exception of radio broadcasting, cable television,  DHT and DBS satellite transmission, and digital 
audio services.  In general terms, in relation to market access Mexico has bound the basic principles 
of the Federal Telecommunications Law of 1995 ( see below).  With regard to national treatment, 
Mexico has bound without restriction all the services in all modes of supply, with the exception of the 
presence of natural persons.83  Mexico has adopted the Fourth Pr otocol annexed to the GATS, as well 
as the Reference Paper annexed to the Telecommunications Protocol. 
                                                      
79 OECD (2007b). 
80 Information consulted at:  http://www.cft.gob .mx/wb2/COFETEL/COFE_Diagnosticos_e_indices_ 
de_produccion_del_sec2. 
81 OECD (2007b). 
82 Economist Intelligence Unit (2006). 
83 WTO document GATS/SC/56 of 15 April 1994, and its supplements. Mexico WT/TPR/S/195/Rev.1 
 Page 119 
 
 
111. The regulation of the telecommunications sector is divided between two entities:  the Federal 
Telecommunications Commission (COFETEL) and the SCT.  COFETEL is a decentralized 
administrative agency of the SCT, with technical , operational and budgetary autonomy;  its budget is 
subject to the measures applicable and to the regulat ions issued by the Ministry of Finance and Public 
Credit.  COFETEL's main functions include issuing administrative telecommunications regulations;  
giving opinions on the granti ng, amendment, extension and assignment of concession titles and 
permits;  submitting the frequency ba nd allocation programme for approval by the SCT;  coordinating 
the bidding procedures for the exploitation of ge ostationary orbital positions and satellite orbits 
allocated to Mexico;  maintaining the telecommunica tions register (concession titles, tariffs, etc.);  
promoting and overseeing interconnection agreements  and the provisions of concession titles;  and 
proposing to the SCT the imposition of sanctions on  those found to be in breach of the law or 
administrative regulations.84 
112. The SCT is responsible for formulating genera l policy for the telecommunications sector;  
issuing the sector's regulations;  proposing draft legislation for the sector;  granting, amending and 
suspending concessions and permits for the provision of telecommunication and broadcasting 
services;  and imposing on infringing enterprises th e sanctions proposed by COFETEL.  It has been 
argued that the apparent duplication in the perfo rmance of certain functions by COFETEL and the 
SCT has delayed the implementation of certain  procedures, weakened COFETEL's autonomy and 
made the regulation of the sector less efficient.85  The authorities consider that there is no duplication 
of functions and that the sector is efficiently regulat ed.  They have noted that the recent reform of the 
legislation will ensure better international pr actices, autonomy and transparency for COFETEL. 
113. The main law regulating the telecommunica tions sector in Mexico is the Federal 
Telecommunications Law  (LFT) of 1995.86  The 1960 Federal Radio and Television Law regulates 
the broadcasting service.87  Other laws and regulations include the 1940 General Means of 
Communications Law, the 1990 Telecommunications Re gulations and the regula tions and resolutions 
issued by the SCT and COFETEL.88  The latter include, for example, the 1997 Satellite 
Communications Regulations and the rules for international (2004), long distance (1996) and local 
(1997) telecommunications services.89 
114. According to the LFT, a concession is required in  order use a frequency band;  operate public 
telecommunications networks;  make commercial u se of radio and television channels;  provide 
satellite services (including through ground stations);   occupy geostationary orbital positions and 
satellite orbits allocated to Mexico;  and explo it signal transmission and reception rights for frequency 
bands associated with foreign satellite systems that may cover or provide services in Mexican territory.  Concessions can only be granted to natural or legal pe rsons of Mexican nationality and 
foreign equity participation is limited to 49 per cent, with the exception of mobile telephony services 
where foreign investors may acquire a higher percen tage of the equity by obtaining a favourable 
resolution of the National Foreign Investments Commission (see Chapter II (4)). 
                                                     
 
84 Article 9 of the Federal Telecommunications Law, added in the latest amendment published in the 
Official Journal on 11 April 2006. 
85 OECD (2004) and Garcia-Murillo (2002). 
86 The most recent amendment of the LFT was publis hed in the Official Jour nal on 11 April 2006. 
87 The most recent amendment of the Federal Radio and television Law was published in the Official 
Journal on 11 April 2006. 
88 The most recent amendment of the general means of Communications Law was published in the 
Official Journal on 25 October 2005.  The Telecommunications Regulations were published in the Official 
Journal on 29 October 1990. 
89 Information consulted at: http://www.cofetel .gob.mx/wb2/COFETEL/CO FE_Reglamento_reglas_ 
y_planes_1. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 120 
 
 
115. The reform of the LFT eliminated the permit re quirement and the nationality restriction for 
the installation and provision of special telecommuni cations services, such as value added services;  
since 2006 it has only been necessary to register with  the SCT.  A permit is also required to establish 
and operate ground transmitti ng stations, as well as telecommunications services marketing 
companies not of a public network nature. 
116. Frequency bands are awarded under a public comp etitive bidding procedure and for a term of 
20 years, which can be extended for equal peri ods at the discretion of the SCT.  Public 
telecommunications networks are awarded on the basis of  an analysis of inter ested party applications 
and for a term of up to 30 years, which may be extended for periods equal to those originally 
established. 
117. Private telecommunications networks do not re quire a concession or permit to operate, unless 
they use radio spectrum frequency bands. 
118. In May 2007, for the purpose of increasi ng competition, COFETEL issued a resolution 
making numbers portable, which will enable users of  both fixed and mobile telephony to keep their 
telephone numbers if they decide to change service provider.90  A timetable which looks forward to 
the implementation of portability during the first half of 2008 has been established. 
119. The LFT stipulates that concessionaires may freely determine the rates for 
telecommunications services.  As distinct from ot her concessionaires, TELMEX is subject to a tariff 
regulation system established in its concession title .  Every four years, COFETEL determines what 
will be the ceiling prices applicable to the bask et of controlled services (basic local telephony, 
national and international LD) based on a cost st udy submitted by TELMEX (which must not include 
the cost of non-controlled services).  At the sa me time, TELMEX may not offer these services for less 
than it costs to supply them (tariff floor). 
120. As the prices of Internet access services are not regulated by COFETEL and the Mexican 
legislation does not require subscr iber loop unbundling (see below), a company with market power in 
local telephony could offer Internet services at lowe r prices than its competitors.  Nevertheless, the 
authorities have pointed out that the CFC oversees the market to prevent this situation from arising. 
121. The LFT also stipulates that COFETEL has the right to impose certain obligations with 
respect to the prices established by concessionaires w ho, in the opinion of the CFC, have considerable 
power in a particular market.  However, the op inion issued by the CFC classifying TELMEX as a 
company with a dominant position in certain te lecommunications markets was annulled by the 
Judiciary in February 2007.  In this connection, th e authorities have noted that the CFC is initiating a 
new procedure to determine whether any public ne twork concessionaire has substantial power in the 
relevant markets. 
122. The provisions regulating interconnection in Me xico are contained in the LFT, the concession 
titles and various regulations issued by the SCT and COFETEL.  The LFT establishes that public 
telecommunications network concessionaires must adopt  architecture designs that provide for network 
interconnection and interoperability.  Public ne twork concessionaires are required to negotiate 
interconnection agreements within a period of not more than 60 days from the time at which one of 
them so requests.  If an agreement cannot be r eached, the parties can appeal to COFETEL to rule on 
the outstanding issues, including, if necessary, inte rconnection rates, within the next 60 days.  In 
recent years, COFETEL has intervened on average ei ght times a year to establish interconnection 
conditions that could not be ag reed between concessionaires. 
                                                      
90 COFETEL Press Release No. 22 of 30 May 2007. Mexico WT/TPR/S/195/Rev.1 
 Page 121 
 
 
123. Discriminatory practices in the application of ta riffs or any other inte rconnection conditions  
are prohibited.  Interconnection agreements do not require COFETEL's approval, but must be 
registered with COFETEL.  In mid-2007, a reform  of the rules on interconnection (the Basic 
Technical Interconnection and In teroperability Plan) was in th e public consultation phase. 
124. The Mexican legislation does not require opera tors with a dominant position to unbundle the 
subscriber loop for another concessionaire seeking access.91 
125. In April 2006, the Mexican Congress approved re forms of the Federal Radio and Television 
Law and the LFT.  In particular, changes were ma de to Article 28 of the Law for the purpose of 
allowing broadcasting concessionaires to provide telecommunications services by making an 
administrative application to the SCT.  However, in  May 2007, the Supreme Court of Justice declared 
that article unconstitutional because it was discrimin atory and thus eliminated the possibility of 
broadcasting concessionaires providing additional services using previously allocated frequency 
bands.92  As a result of this, at the end of 2007 Congress was in process of revising the legal 
framework. 
126. In April 2006, COFETEL published an amendment to  the rules of the LD service introducing 
the  so-called "caller pays national" mobile tele phony tariff scheme.  This scheme requires mobile 
telephony concessionaires to incorporate in th e interconnection contracts they sign with 
LD concessionaires the necessary provisions for th e charge for national and international public 
LD traffic destined for mobile phones to be paid by the one who generates the call.93 
127. In August 2000, the United States sought consu ltations with Mexico, alleging that Mexico 
had adopted anti-competitive and discriminatory regula tory measures, had tolerated certain privately-
established market access barriers and had failed to take needed regulatory action in its basic and 
value-added telecommunications sectors.94  In April 2002 a panel was established to settle the 
dispute.95  In June 2004, the WTO's Dispute Settlement  Body adopted the panel's report, which 
concluded, inter alia , that Mexico:  (i) had failed to en sure the application of cost-oriented 
international interconnection rates;  (ii) had fa iled to impose regulatory measures to prevent anti-
competitive practices on the part of the main tele communications operator;  and (iii) had failed to 
ensure access to and use of public teleco mmunications networks on reasonable and non-
discriminatory terms.96 
128. In June 2004, Mexico and the United States agreed that Mexico would implement the 
recommendations made in the panel's report, such as repealing the legal provisions establishing that 
the operator with the majority of outgoing interna tional long distance (ILD) traffic should be the only 
one to negotiate international interconnection contracts.  In 2005, Mexico began allowing the 
marketing (resale) of the ILD service.  However,  it still does not allow marketers to provide the 
service through the leasing of private networks in such  a way that the traffic is not routed through 
                                                      
91 OECD (2007b). 
92 Unconstitutionality Proceeding 26/2006 of the Supreme Court of Justice of the Nation. 
93 Resolution amending the rules of the LD service pub lished in the Official Journal on 13 April 2006. 
94 WTO document WT/DS204/1 of 29 August 2000. 
95 WTO document WT/DS204/3 of 18 February 2002.  Some claims, such as those relating to value 
added telecommunications, were withdrawn from the request submitted by the United States. 
96 WTO document WT/DS204/R of 2 April 2004. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 122 
 
 
authorized international gateways (international si mple resale);  neither does it allow the deliberate 
reversal of the direction of ILD traffic (known as call-back ).97 
(iii) Financial services 
(a) Overview 
129. The Ministry of Finance and Public Credit (SHCP) has the primary responsibility for the 
regulation and supervision of the financial sector , as well as for setting the capital requirements of 
most of its participants.  There are three specific regulatory agencies operating under the SHCP – the National Banking and Securities Commission (CNB V), which oversees the banking sector, securities 
market, and other credit agencies;  the National Insurance and Bonding Commission (CNSF), which 
oversees insurance companies;  and the Nationa l Pension Fund Commission (CONSAR), which 
oversees privately managed pension funds (AFOREs). 
130. The Mexican Central Bank regulates financial ope rations, the foreign exchange and derivative 
markets, and the payment system and serves as a re serve bank and lender of last resort to financial 
institutions (see also Chapter I (2)(iii)). 
131. Mexico's GATS commitments cover banking, in surance, and other financial services, and 
mostly pertain to commercial presence (mode 3).
98  Among other things, foreign investment in the 
market for services relating to the acceptance of deposits and lending of all types is limited to 40 per 
cent of common capital stock, while individual holdi ngs are bound at 5 per cent of the capital stock, 
or at 20 per cent with SHCP authorization.  In  insurance, Mexico's schedule of commitments was 
bound at 40 per cent of paid-up capital, while the limit on individual holdings by foreign investors 
was bound at 10 per cent or 20 per cent with due au thorization from the SHCP.  The schedule does 
not permit foreign investment in credit unions, savin gs and loan companies or development banks, but 
it does allow foreign financial institutions to establish represen tative offices with the SHCP's 
authorization. 
132. The provisions for access to the financial servi ces market in Mexican law are considerably 
more favourable than the country's GATS commitm ents.  Legal reforms in 1999 allowed the 
participation of foreign investment for up to 100 pe r cent of the capital of commercial banks, financial 
groups, securities brokerage firms, and securities mark et specialists.  However, participation of 
foreign investment in other financial instituti ons – such as general deposit warehouses, financial 
leasing companies, currency exchange houses, an d insurance and bonding institutions – remains 
capped at 49 per cent of paid-up capital. 
133. Mexico has also incorporated a chapter on fi nancial services in eight free trade agreements, 
namely:  the North American Free Trade Agreement (which has served as a blueprint for other FTAs), 
and its agreements with Boliv ia, Colombia and Venezuela99, Nicaragua, Northern Triangle 
(El Salvador, Honduras, Guatemala), Japan, European  Union, and European Free Trade Association. 
134. The financial sector legislation includes:  ( i)  General Law on Auxiliary  Credit Organizations 
and Activities;  (ii) Investment Company Law;  ( iii) Credit Institutions Law;  (iv) Law Regulating 
Financial Groups;  (v) Central Bank Law;  (vi) Rul es for the Establishment of Subsidiaries of Foreign 
                                                      
97 COFETEL Resolution amending the rules on international telecommunications, published in the 
Official Journal on 5 April 2005. 
98 WTO document GATS/SC/56/Suppl.3 of 26 February 1998. 
99 Venezuela has denounced the Free Trade Agreem ent it signed with Mexico and Colombia (see 
Chapter II(5)(ii)). Mexico WT/TPR/S/195/Rev.1 
 Page 123 
 
 
Financial Institutions;  (vii) Law on Savings System s for Retirement;  (viii) General Law on Insurance 
Companies and Mutual Institutions;  (ix) Nati onal Insurance and Bonding Commission Regulations 
on Inspection and Oversight;  (x) People's Savings  and Credit Law;  (xi) National Banking and 
Securities Commission Law;  (xii) Stock Market Law;   (xiii) Law for the Protection of Bank Savings;  
(xiv) Federal Law on Bonding Institu tions;  and (xv) Law for the Pr otection of Financial Services 
Users.100 
135. According to several observers, various refo rms have transformed the Mexican financial 
system by improving transparency and market disc ipline.  The following reforms deserve to be 
highlighted:  in 2005, deposit insurance provided by  the Institute for the Protection of Bank Savings 
was reduced to 400,000 units of investment (US $110,000), permission was given for up to 15 per cent 
of the assets of privately administered pension funds  to be invested in equities, and a new and more 
far-reaching Stock Market Law (Box IV.1) entered into  force;  in 2006, the Credit Institutions Law 
and the General Law on Auxiliary Credit Organiza tions and Activities were reformed, the limited-
scope financial company (SOFOLES) market w as liberalized through multipurpose financial 
companies (SOFOMES101), a regime for enabling timely interven tion by the authorities in commercial 
banking institutions was adopted;  and in 2007, am endments to the Credit Institutions Law updated 
the transparency legislation, while other reforms ma de activities related to the financing of terrorism a 
criminal offence. 
Box IV.1  The Stock Exchange and the New Stock Market Law  
The Bolsa Mexicana de Valores is Mexico's single stock exchange and Latin America's second-largest.  
The market has performed well in recen t years, with the index surging by more than 40 per cent in dollar 
terms in 2005 and even further in 2006.  However, the Bolsa remains small by international standards, with 
market capitalization of 25 per cent of Mexico's GDP in 2005.  It is also highly concentrated:  only four stocks in the general equities index account for near ly 50 per cent of the i ndex – telecommunications 
companies Teléfonos de México (Telmex) and AMX, the supermarket chain Walmex (owned by Wal-Mart 
of the United States) and Cemex, the Mexican cement co mpany.  Foreign investment is a major source of 
capital.  
Private firms and public issuers have  since 2001 been able to access the certificado bursátil  (stock-market 
certificate), which features a relativel y simple issuing process while also restricting a guaranteed return of 
the bondholders' initial investment.  State and muni cipal governments, along w ith State-owned companies 
such as Pemex, have issued thes e certificates since December 2001.  
Box IV.1 (cont'd) 
                                                      
100 The latest dates of publication and amendment of the legislation listed are as follows:  
(i) 14 January 1985, 18 July 2006;  (ii) 4 June 2001 , 28 January 2004;  (iii) 18 July 1990, 18 July 2006;  
(iv) 18 July 1990, 18 Ju ly 2006;  (v) 23 December 1993, 31 De cember 2000;  (vi)  21 April 1994;  
(vii) 23 May 1996, 15 June 2007;  (viii) 31 August 1935, 18 July 2006;  (ix) 26 January  2004;  (x) 4 June 2001, 31 August 2007;  (xi) 28 April 1995, 20 June 2005;  (xii) 30 December 2005;  (xiii) 19 January 1999, 
6 July 2006;  (xiv) 29 December 1950, 18 July 20 06;  and (xv) 18 Januar y 1999, 15 June 2007. 
101 SOFOMES are financial entities established in order to carry out financial leasing and/or financial 
factoring and/or credit operations for any purpos e, without the need fo r SHCP authorization. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 124 
 
 
The new Stock Market Law came into effect on June 2006.  Its main objective is to expand and modernize 
the Mexican securities market.  Th e law seeks to promote medium-sized companies' access to the stock 
market, strengthen corporate governance standards, consolidate the regulations applicable to publicly held 
companies, bolster financial authorities' regulatory  and oversight capacities, update the regulatory 
framework including for sanctioning inappropriate market behaviour and practices. 
The Stock Market Law also creates a new type of listed company, the Sociedad Anónima Promotora de 
Inversion (SAPI) , which exempts medium-sized firms from the fees required for listing on the stock 
exchange.  According to some estimates, this provision could lift the number of companies to above 
1,400 companies over 2007-2012 from only 140 in 2006.  In addition, the Law strengthens the rights of 
minority shareholders, and redefines the role and authority of the National Banking and Securities Commission.  As such, it is viewed as bringing Me xico into line with the Basel Accords on banking 
supervision and regulation.  
 
Source : IMF (2005), Economist Intelligence Unit  (2006) and Banco de México (2005).  
(b) Banking sector 
136. The Mexican banking sector is composed of  commercial banks, de velopment banks, and 
limited-scope financial companies.  In March 2007,  the assets of the commercial banks accounted for 
45.5 per cent of the total for the domestic financia l system, an increase of around 10 percentage points 
since 2003.  As of  June 2007, four foreign- owned banks – BBVA Bancom er, Banamex-Citgroup, 
Banco Santader Mexicano, and HSBC – c ontrolled 69.4 per cent of all bank assets.102  Overall, 
foreign control of assets in the financial system is above 80 per cent, which makes Mexico the country with the largest ratio of forei gn bank ownership in Latin America.
103 
137. The sectoral distribution of credit granted by commercial banks during 2002-2006 was, on 
average, as follows (percentage of total credit in brackets):  agricu lture, forestry and fishing (2 per 
cent);  mining (0.2 per cent);  manufacturing (12.4 pe r cent);  construction (3.1 per cent);  services and 
other activities (19.8 per cent);  housing (0.1 per cent);  consumption (17.5 per cent);  domestic 
financial sector (4.5 per cent), go vernment and public administration (8 .4 per cent);  Institute for the 
Protection of Bank Savings (IPAB) (11.5 per cent);  and other (2.7 per cent).104 
138. From December 2000 to June 2007, total credit gr anted by commercial banks to the private 
sector rose by 102.7 per cent in real terms.  The overall robust performance is attributed to the 
recapitalization and reprivatization of banks, the co nsolidation of the banking system after the 1994 
financial crisis and the inflow of foreign invest ment, as well as to improve d financial regulation, 
economic expansion and increas ed consumer confidence. 
139. Overall, in Mexico, the figure for credit channelled through the banking system as a 
proportion of GDP is only 15.6 per cent (June 2007).105  This suggests the need for reforms additional 
to those already implemented to recapitalize banks through the IPAB (the successor to the Banking 
Fund for the Protection of Savings).  A large part  of the commercial banks profits still come from 
commissions paid by account holders, rather than fr om interest paid on loans.  Additional reforms 
designed to facilitate access to credit for small a nd medium-sized enterprises, make the regulations 
                                                      
102 National Banking and Securities Commission, Boletín Estadístico:  Banca Múltiple  (Statistical 
Bulletin: Commercial Banking), March 2007, page 39. 
103 Economist Intelligence Unit (2006), page 42. 
104 Total credit includes the current, past due and discounted portfolios, the interest paid on loans, 
active and due.  WTO Secretariat estimates ba sed on Ejecutivo Federal (2006), page 332. 
105 By comparison, this figure is 60 per cent in Chile and over 40 per cent in the United States.  
Ejecutivo Federal (2007), page 100.  Consulted at:  http://www.presidencia.gob.mx. Mexico WT/TPR/S/195/Rev.1 
 Page 125 
 
 
relating to small banks more flexib le, and promote the transparency of the financial system are under 
consideration. 
140. The financial indicators for the Mexican banking system have improved in recent years.  
Loans past due as a percentage of total loans dr opped from 4.6 per cent in 2002 to 2.3 per cent in 
2007.106  Capital adequacy, measured as net capital rela tive to total risk assets, was 15.9 per cent in 
June 2007 as compared with 15.5 per cent at the end of 2002.  Mexico has also made progress with the modernization of its banking regulatory system , among other things by adopting the Basel Core 
Principles for effective and transparent banking superv ision.  According to the International Monetary 
Fund, at the end of 2005 Mexico had fully complie d with 19 of the 25 Core Principles and largely 
complied with five, while failing to meet one.
107 
141. Development banks figure prominently in the Mexican financial system.  There are 
seven existing institutions listed as national credit companies:  Nacional Financiera (NAFIN, see 
Chapter III (4)(iii)) , Banco Nacional de Comercio Exterior  (BANCOMEXT, see Chapter III (3)(v)), 
Banco Nacional de Obras y Servicios Públicos, So ciedad Hipotecaria Federal, Banco de Ahorro 
Nacional y Servicios Financieros, Banco Naci onal del Ejército, Fuerza Aérea y Armada, and 
Financiera Rural.  Measured by the percentage of  assets owned relative to total assets, NAFIN is the 
most important player in the deve lopment banking sector, controlling 40 per cent of total development 
bank assets.108 
142. Banking licences are granted with SHCP approval based on the requirements listed in 
Article 9 of the Credit Institutions Law.  Minor di stinctions are made with regard to ownership 
structure between domestic and foreign capital. 
143. Foreign capital may participate in the provision of banking services through subsidiaries of 
foreign financial institutions in countries with wh ich Mexico has signed a free trade agreement that 
includes a financial services chapter.  The estab lishment of subsidiaries is governed by the 
Credit Institutions Law and the Rules for the Es tablishment of Subsidiaries and depends on 
SHCP approval.  Subsidiaries can offer the sam e services as commercial banks, subject to the 
provisions of free trade agreements, and provided that the sponsoring foreign financial institution 
offers similar services in the country of origin. 
144. At the same time, foreign investors from any country may hold up to 100 per cent of the 
shares representing the capital of a banking institu tion, on the understanding that these operations 
require the prior authorization of the SHCP (in c onsultation with the CNBV) if they exceed 5 per cent 
of the capital.  Nevertheless, foreign legal persons  that exercise functions of authority may not 
participate in the capital of banki ng institutions in any way. 
145. There are no additional restrictions on domestic banks or corporations or retail consumers for 
cross-border borrowing or depos its from/with foreign banks. 
146. The Bank of Mexico has the authority to issu e general criteria regulating interest rates, 
payments and commissions charged to customers and other financial and credit institutions.  
Moreover, commercial banks need to comply w ith a series of requirements relating to the 
commissions that they charge to their customers to ensure that the latter are duly informed.  There are 
                                                      
106 National Banking and Securities Commission, Information Histórica de los Boletines Estadísticos 
de Banca Múltiple  (Historical Information from Statistical Bulletins on Commercial Banking).  Consulted at:  
http:// www.cnbv.gob.mx. 
107 IMF (2007). 
108 National Banking and Securities Commission (2007a), page 34. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 126 
 
 
no provisions in the Mexican legislation that woul d require commercial banks to provide credit to a 
particular sector of the economy. 
(c) Insurance 
147. Mexico's insurance sector comprises insuran ce companies and mutual institutions.  Although 
insurance penetration109 is only 1.9 per cent of GDP (beginning of  2007), Mexico is the second largest 
insurance market in Latin America, with 25 per cent of total premiums. 
148. Over the period 2002-06, the value of direct premiums averaged some 137,238 billion pesos, 
life insurance accounting for 38.9 per cent of this figure, pensions for 4.0 per cent, accidents and 
illness for 13.2 per cent, and damages for 43.9 per cen t;  in the meantime, the value of reinsurance 
premiums averaged about 2,933 billion pesos.110  Key emerging niches include educational, 
transportation, and natural hazard products. 
149. As of December 2006, there were 91 insurance comp anies in Mexico;  of the total, one was a 
mutual insurance company and one a State-owned company, while the remaining 89 were private insurance companies.  Three foreign and two Mexi can insurance companies comprise nearly 60 per 
cent of the market. 
150. The insurance industry is governed by the Gene ral Law on Insurance Institutions and Mutual 
Societies (LGISMS)  of 1935 and amendments thereto.  The SHCP is mainly in charge of granting 
authorizations to insurance companies to operate  in the country, while the CNSF is a supervisory 
body. 
151. Companies seeking to obtain an insurance licence must meet the requirements set forth in the 
LGISMS.  This Law states that, depending on the or igin of the shareholders who subscribe their 
capital, insurance institutions may be either wholly or majority Mexican-owned or wholly or majority 
foreign-owned, in which case they are treated as a subsidiary of a financial institution from abroad. 
152. In the case of institutions the majority of who se capital is Mexican-owned, foreign natural and 
legal persons may (with some exceptions) acquire shares representing the insurers' capital but the 
Mexican investment must retain the power to dete rmine the management and effective control of the 
institution.  According to the Law, effective contro l may be obtained by acquiring 30 per cent or more 
of the shares representing the paid-up capital of an  institution, controlling the annual meeting, being 
able to appoint a majority of the members of the board of directors, or by exercising some other means of control. 
153. In the case of insurers the majority of whose cap ital is foreign-owned, the foreign institution 
must come from a country with which Mexico has signed a free trade agreement that includes a 
financial services chapter.  These foreign institutions  must establish themselves in Mexico through 
subsidiaries. 
154. In addition to meeting the above requirements, subsidiaries must also comply with the Rules 
for the Establishment of Subsidiaries of Financia l Institutions from Abroad.  These requirements 
include the ownership structure, operating and intern al controls, financial projections and fitness of 
directors and senior management. 
                                                     
 
109 Total value of insurance premiums as a percentage of GDP. 
110 Figures for 2006 reported as of September.  National Insurance and Bonding Commission (several 
years);  National Insurance and Bonding Commission (2007a);  and National Insurance and Bonding Commission (2007b). Mexico WT/TPR/S/195/Rev.1 
 Page 127 
 
 
155. The LGISMS forbids hiring in surance services from companies established abroad when the 
risk is located in Mexico.  Exceptions are granted wh en the insurable risk is not insured by companies 
operating in the country, and the insured has received due authorization from SHCP to hire a foreign company to provide the service directly or throu gh an insurance company established in Mexico.  
Transfer of non-life or life insurance portf olios between insurance companies requires 
SHCP approval, which is given when the requirements are met. 
156. Where the hiring of reinsurance services is concerned, the LGISM allows an insurer 
established in Mexico to sign a contract with re insurers from abroad provided that the latter are 
enrolled in the General Register of Foreign Rein surers;  enrolment depends on the discretionary 
approval of the SHCP. 
157. Insurance companies do not require approval for the premiums they charge.  However, they 
must provide the CNSF with technical reports th at lay out the criteria on which their premium 
calculations are based. 
(iv) Air transport and airports 
(a) Main features 
158. In 2006, Mexico's airport network comprise d 1,259 airfields and 59 international and 
26 domestic airports.  Between 2002 and 2006, the number of passe ngers carried on domestic and 
international flights increased by slightly more than 37 per cent, reaching some 45.4 million in 2006, while the volume of freight transported rose by 40 per cent, reaching approximately 544,000 tonnes in 
2006.  It is estimated that physical investment, bot h public and private, in air transport infrastructure 
averaged 3,106 billion pesos (US$296 milli on) per annum betw een 2002 and 2006.
111 
159. In 1998, the Government granted concessions on 35 airports organized in four regional airport 
groups in the form of limited companies:  Centre No rth (13 airports), Pacific (12 airports), South-East 
(nine airports), and Mexico City (one airport).  Mexico City International Airport is a semi-public 
company with majority Federal Government particip ation.  The other three groups are controlled by 
domestic and foreign private investors.  The govern ment agency Airports and Auxiliary Services 
(ASA) is a decentralized Federal Government b ody with legal personality and its own assets.  
ASA operates a network of 20 airpor ts and participates in five othe r airports in partnership with 
governments of federative entities and the private sector.112 
160. There are 18 airlines established in Mexico that provide regular air transport services;  of 
these, 14 carry passengers on domestic routes and seven on international routes, while 11 carry 
freight.  In November 2005, Consorcio Internaciona l de Aviación (Cintra Group) sold Mexicana de 
Aviación and its subsidiary Click, thereby comply ing with a resolution of  the Federal Competition 
Commission (CFC) which sought to dilute the market  concentration that had resulted from the merger 
of Aeroméxico and Mexicana de Aviación in 1995.  At the end of 2007, the Government was in the 
process of selling its approximately 66 per cent holdi ng in the Cintra Group and thus completing the 
privatization of Aeroméxico. 
                                                      
111 Statistical Annex to First Government Report of 1 September 2007, based on data from the Ministry 
of Communications and Transport.  Consulted at:  http://www.informe.gob.mx/informe/. 
112 Information consulted at:  http://www.asa.gob.mx/wb/webasa/red_de_services. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 128 
 
 
161. During the period 1995-2005 the Mexican aviation market was dominated by the duopoly of 
Aeroméxico and Mexicana de Aviación113;  these two companies were part of the same corporate 
structure controlled by the State through the Cintra Group, and together with their subsidiaries held  
77 per cent of the Mexican passenger transport market in 2000.114  The level of competition in that 
market appears to have increased considerably in r ecent years.  At the end of 2006, Aeroméxico, the 
leading company, controlled 27.4 per cent of th e market, followed by Mexicana de Aviación with 
20.6 per cent, Aviacsa with 14 per cent, and six low-co st airlines (five of which entered the market in 
2005-06) with 19.2 per cent.115 
(b) Regulatory framework 
162. The Ministry of Communications  and Transport (SCT) is the main regulatory entity for the 
air transport sector, with responsibility for planni ng and implementing policies and programmes for 
domestic airport development, granting concessions fo r operating air transport and airport services, its 
Directorate General of Civil Aviation being in charge of processing applications for concessions, 
issuing air transport and civil airfield permits and au thorizations and proposing official standards.  
Other state agencies concerned with the sector include Mexican Air Space Navigation Services 
(SENEAM), which provides air control and navigati on services, and ASA, which is responsible for 
operating, managing and maintain ing State-controlled airports. 
163. Mexico's commitments with respect to air tr ansport services under the GATS were limited to 
certain air transport support services (see Table AIV.1). 
164. The air transport sector is mainly regulated by the Civil Aviation Law of 1995 and its 
Regulations of 1998, and by the Airports Law of  1995 and its Regulations of 2000.  Since Mexico's 
previous Review, this legislati on has been amended with a view, inter alia , to optimizing the sector's 
activities and complying with the International Civil Aviation Convention.116 
165. The Airports Law and its Regulations establish the general regime applicable to Mexican 
airport concessions.  This Law paved the way for the modernization and development of Mexican 
airport infrastructure by permitting the transfer of the administration, operation and management of 
existing airports to the private sector and allo wing it to build new ones, through concessions.  The 
concessions are for a term of 50 years and can be extended on one or more occasions for a period of 
not more than 50 additional years, for which the concessionaires must comply with certain security, 
investment and other requirements. 
166. The legislation allows concessionaires to provide, or hire third parties to provide, airport, 
auxiliary and commercial services, it being mandatory that these third parties be Mexican trading 
companies.  Under the Constitution, air navigation services must be provided solely and exclusively 
by the State, through SENEAM. 
                                                      
113 CFC Resolution on the Cintra Case, 2000.  Information consulted at:  http://www.cfc.gob.mx/ 
index.php?option=com_content&task=view&id=3677&Itemid=183. 
114 WTO Secretariat estimates based on SCT sta tistics, consulted at:  http://dgac.sct.gob. 
mx/index.php?id=477. 
115 Ministry of Communications and Transport.  Information consulted at:  http://dgac.sct.gob.mx/ 
index.php?id=467. 
116 The most recent amendments to the Civil Aviation Law and its Regu lations were published in the 
Official Journal on 6 June 2006 and 24 June 2004, respectively.  The most recent amendments to the Airports 
Law and its Regulations were published in the Official Journal on 5 July 2006 and 9 September 2003, respectively. Mexico WT/TPR/S/195/Rev.1 
 Page 129 
 
 
167. Under the Foreign Investment Law, the partic ipation of foreign investors in concession-
holding companies is restricted to a maximum of 49 per cent;  the foreign investor may acquire a 
larger percentage of the capital by obtaining a favourable resolution from the National Foreign 
Investments Commission (see Chapter II (4)).  At the end of 2007 no authorization to invest more 
than 49 per cent had been granted. 
168. The Airports Law distinguishes three categories of services offered in airports:  airport 
services, auxiliary services, and commercial services.117  Concessionaires must apply to the SCT for 
registration of the tariffs corresponding to airport and auxiliary services 30 days in advance of their 
application;  the SCT then has ten working days to request additional information or return the 
application unregistered, or 15 days to accept regi stration.  Concessionaires are free to set different 
tariff levels, provided that the tariffs do not exceed  those registered.  The SCT is authorized to 
regulate the tariffs for airport and auxiliary services after previously obtaining the opinion of the CFC, 
which must determine whether or not the conditions  of reasonable competition in the provision of 
these services are fulfilled.  The SCT acts either ex o fficio or at the request of the party concerned. 
169. The Civil Aviation Law and its Regulations regul ate the exploitation of the air space and the 
provision of air transport services.  According to this  Law, in order to provide scheduled domestic air 
transport services (cabotage) it is necessary to obtain a concession from the SCT that will only be granted to Mexican companies.  The concession ser ves as a basis for seeking permission to provide 
scheduled international services.  Foreign participa tion in domestic air transport companies is limited 
to 25 per cent of the capital (see Chapter II (4)).
118 
170. Other air transport services are subject to the obtaining of a permit that is available to:  only 
Mexican companies in the case of unscheduled domestic services;  to foreign companies in the case of 
scheduled international services under internationa l treaty provisions;  to foreign and Mexican 
companies in the case of unscheduled international ser vices;  and to Mexican or  foreign individuals or 
companies in the case of private commercial air transport services. 
171. The Civil Aviation Law stipulates that operators  may freely determine the rates for their air 
transport services, subject to satisfactory co nditions of quality, competitiveness, safety and 
permanence.  However, rates for international rout es must be approved by the SCT in accordance with 
the various treaty provisions.  All rates must be re gistered with the SCT before being applied.  The 
SCT may refuse to register these rates or may establish minimum or maximum tariff levels in order to promote competition. 
172. Mexico has signed 39 bilateral civil aviation agre ements:  nine with Asian countries, 14 with 
Caribbean and Central and South American countries,  14 with European countries and two with North 
American countries.  As of mid-2007, Mexico ha d not signed any open skies agreement.  The 
SCT considers that the domestic air sector is still not prepared for the borders to be thrown wide open, 
and accordingly is seeking to sign agreements that allow for a gradual and balanced opening, while 
exhausting the opportunities offe red by bilateral relations. 
                                                     
 
117 The various definitions are given in Article 48 of the 1995 Airports Law. 
118 Article 7 (II) of the Foreign Investment Law, the latest amendment to which was published in the 
Official Journal of 18 July 2006. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 130 
 
 
(v) Maritime transport 
(a) Main features 
173. Maritime transport moves approximately 70 per cent of the total volume of Mexico's 
international trade.   In 2006, the total volume of international freight was equivalent to some 
213 million tonnes, 68 per cent of which represented exports and the rest imports.  Mexico has 
95 maritime and 18 river ports;  of these, 66 are au thorized for high-seas traffic.  In terms of their 
principal activity, 37 ports are commercial.  Moreove r, there 43 fishing ports, 22 that support tourism, 
and 11 that handle petroleum.119  Excluding petroleum transport, Manzanillo, Lázaro Cárdenas, 
Veracruz, Altamira and Tampico are Mexico's main commercial ports with 75 per cent of the freight 
volume moved.  In 2006, four ports in the Gulf of Mexico (Puertos Dos Bocas, Pajaritos, Veracruz 
and Cayo Arcas) were responsible for approximate ly 77 per cent of foreign trade freight volume, 
mainly exports of petroleum and petroleum derivatives.120 
174. In mid-2007, the 66 ports capable of handling hi gh-seas freight were grouped into Integral 
Port Administrations (APIs), of which 16 are admi nistered by the Federal Government and another 
five by state governments, while one API is in pr ivate hands.  The APIs are trading companies with 
autonomy in their operational and financial management of the por ts' goods and services.  All the 
country's ports are owned by the State.  The author ities have noted that there are no plans to transfer 
other APIs to the private sector.  In practice, ma ny of the principal activities within the APIs are 
performed by the private sector through concessions. 
175. Between 2001 and 2006, public and private inv estment in port infrastructure increased 
irregularly, averaging 6,132 billion pesos per a nnum (US$568 million), 70 per cent of which was 
private investment.  During the same period, the movement of containers through the national port 
system increased at an average rate of 14.6 per cent per annum, and the freight transiting through the 
ports grew on average by 3.7 per cent per annum, reaching 287.5 million tonnes in 2006.  Of this 
freight, 73 per cent was high-seas and the rest cabotage.121  
176. The Mexican Government's National Infrastru cture Programme 2007-2012 notes that in terms 
of port infrastructure Mexico ranks 64th out of 125 countries, according to a 2006 study by the World 
Economic Forum.  This Programme also estimates  that a little over 10 billion pesos a year in port 
infrastructure investment will be need ed to implement the necessary reforms.122  For the development 
of new port projects within the National Infrastructur e Programme it is proposed to invite bids for a 
concession to operate specialized container handli ng terminals in the port of Bahía Colonet.  
Moreover, the authorities have noted that the National Competitiveness Agreement calls on the land 
and maritime transport operators and the SCT to undertake to solve the problems of multimodal 
transport bottlenecks. 
177. In 2006, there were five domestic shipping  lines and 75 foreign lines offering high-seas 
maritime transport services from Mexican ports.  Th e merchant marine, which in 2006 consisted of 
239 vessels with a capacity of more than 1,000 GRT,  is relatively small.  In 2006, vessels belonging 
                                                      
119 Some ports handle two or more activities. 
120 Statistical Annex to Sixth Government Report of 1 September 2006, based on Ministry of 
Communications and Transport data.  Consulted at:  http://sexto.informe.fox.presidencia.gob.mx/index.php? 
dseccion=4. 
121 Statistical Annex to Sixth Government Report of 1 September 2006, based on Ministry of 
Communications and Transport data.  Consulted at:  http://sexto.informe.fox.presidencia.gob.mx/index.php? 
dseccion=4. 
122 National Infrastructure Programme 2007-2012.  Consulted at:  www.infraestructura.gob.mx. Mexico WT/TPR/S/195/Rev.1 
 Page 131 
 
 
to foreign merchant fleets were responsible for tr ansporting 31 per cent of cabotage and practically all 
of high-seas cargo.123 
(b) Regulatory framework 
178. The main legal provisions governing maritime tr ansport are contained in several articles of 
the Constitution, the Port Law of 1993, its Regulati ons of 1994, the new Shi pping and Maritime Trade 
Law of 2006 and its Regulations.124  The SCT, through the General Coordinating Office for Ports and 
the Merchant Marine and its directorates general, is  the main agency responsible for regulation, as 
well as for policy formulation and implementation in the maritime transport sector.  Moreover, the 
SCT has responsibility for granting concessions for AP Is and the provision of services in terminals, 
marinas and port facilities. 
179. The main changes introduced by  the 2006 Shipping and Maritim e Trade Law relate to foreign 
participation in cabotage shipping.  The new Law continues to reserve cabotage for Mexican ship-
owners, but stipulates that if there are no Me xican vessels available under similar technical 
conditions, the SCT may only grant temporary permit s to Mexican ship-owner s with a foreign vessel 
under bare-boat charter, or to a Mexican ship -owner with a foreign vessel under some leasing 
agreement.  The new Law no longer permits the SCT to  grant permits to foreign shipping companies.  
The period of validity of the temporary permits was reduced to three months and no permit for the 
same vessel may be renewed more than seven tim es.  Furthermore, a Mexican ship-owner holding a 
temporary permit for a foreign vessel must register it under the Mexican flag if it is going to stay in Mexican waters for more than two years. 
180. Under the Foreign Investment Law (see Chapter II  (4)), foreign investment in the maritime 
transport sector is limited to a maximum of 49 per cent of total capital in APIs and in shipping companies that commercially exploit vessels for inla nd and coastal navigation, with the exception of 
tourism cruise ships, and certain port operations  such as dredging.  The Foreign Investment 
Commission may authorize foreign participatio n above 49 per cent in port services for inland 
waterway navigation operations, as well as in ship ping companies engaged exclusively in high-seas 
traffic.  The authorities have noted that in r ecent years authorizations to exceed the permitted 
percentage of 49 per cent have been granted. 
181. Foreign shipping companies and vessels from an y country may participate in international 
maritime (high-seas) transport activities provided their country of origin extends reciprocal treatment 
to Mexico.  The Shipping and Maritime Trade Law of 2006 provides for the possibility of reserving 
all or part of certain international transpor t activities for Mexican shipping companies if the 
CFC rules, in an opinion, that in that particular market competition is lacking. 
182. The freight rates for regular high-seas shipping services and port service charges are fixed 
freely by the service providers , except in the absence of r easonable competition, when the 
SCT establishes the basis for tariff regulation and fixes the levels of payment and rules of application.  
This is the case with the tariffs for the use of por t infrastructure applied by the APIs, and for some 
services such as pilotage, towing and ferrying.  Th e concession titles of the APIs have maximum tariff 
levels established for certain services.  The tariffs for tourism activities are deregulated but must be 
registered with the SCT. 
                                                     
 
123 Information provided by the authorities. 
124 The Port Law and the latest amendment to its Regulations were published in the Official Journal of 
19 July 1993 and 8 August 2000, respectively.  The Shipping and Maritime Trade Law was published in the 
Official Journal of 1 July 2006, and the latest amendment to the Regulations of the Shipping Law was published in the Official Journal of 19 April 2005. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 132 
 
 
183. In mid-2006, the Federal Government created the Mexican Merchant Marine Development 
Fund (Fondemar) with a view to helping Mexican sh ipping companies to obtain financing for buying, 
building or modernizing vessels for maritime tra ffic.  In each case the SCT must determine 
Fondemar's level of participation in the credit risk  through guarantees.  According to information 
provided by the authorities, the resources allocated to Fondemar amounted to 117 million pesos 
(US$10.7 million). 
184. Mexico has signed up to the International Mariti me Organization's International Ship and Port 
Facility Security (ISPS) Code.  The authorities have i ndicated that the ISPS Code is in force in all the 
country's high-seas ports. 
185. Mexico has not assumed any specific commitments  within the framework of the GATS with 
regard to maritime transport services (see Table AIV.1) .  This sector has been included in most of the 
free trade agreements signed by Mexico. 
(vi) Professional services 
186. Within the framework of the GATS, Mexico assumed specific commitments under four 
professional services headings:  accounting, auditing  and bookkeeping;  consultancy and technical 
studies for architecture, consultancy and technical services for engineering, and medical and dental 
services, for which free cross-border supply and consum ption abroad are allowed.  With regard to 
commercial presence, foreign investment up to 100 per cent in architectural and engineering services and up to 49 per cent in medi cal and dental services and accounting services was bound;  foreign 
accounting companies must use the name of their Mexican partners.
125  Mexico did not assume any 
commitments in the area of legal services. 
187. Under Article V, Mexico has notified its preferential agreements relating to services that 
contain provisions concerning the negotiation of agre ements on the mutual recognition of certificates 
of competency and licences for the provision of  professional services.  Nevertheless, no notifications 
have been received under Article V II.4 concerning mutual recognitio n agreements that Mexico has 
signed. 
188. In October 2007, within the NAFTA framewo rk Mexico had signed mutual recognition 
agreements for the professions of accountancy, engi neering and architecture which are in process of 
implementation.  Moreover, Mexico had concluded an  agreement on the mutual recognition of higher 
education certificates and degrees with Colombia126 and formed part of the Regional Agreement on 
the Accreditation of Higher Education Studies, Degrees and Diplomas in Latin America and the 
Caribbean (1975).127  In addition, in May 2006, Mexico and Uruguay signed an Agreement on the 
Mutual Recognition of Study Certificates , Degrees and Academic Qualifications.128 
189. In Mexico, the practice of professions is regulated at federal and state levels.  An 
indispensable requirement for practising a regulated profession is to be the holder of a cédula 
                                                      
125 WTO document GATS/SC/56 of 15 April 1994. 
126 Published in the Official Journal on 22 April 2002. 
127 In addition to Mexico, the following countries are party to this Agreement:  Bolivia, Colombia, 
Cuba, El Salvador, Former Yugoslav Republic of Macedonia, the Holy S ee, Netherlands, Nicaragua, Panama, 
Peru, Serbia and Montenegro, Slovenia, Suriname, and Venezuela. 
128 Published in the Official Journal on 2 June 2006. Mexico WT/TPR/S/195/Rev.1 
 Page 133 
 
 
profesional  (licence) issued by the SEP.129  To obtain a licence it is necessary, among other things, to 
possess a diploma recognized by the SEP and to have completed a "social service". 
190. Under Article 5 of the Constitution, each State in the Federation has discretion to determine 
the professions that require a diploma, together with the conditions that must be fulfilled to obtain 
such a diploma and the authorities responsible for issu ing it.  In the Federal District, the exercise of 
professions is governed by the Law Regulating Ar ticle 5 of the Constitution passed by the Congress 
of the Union.130  In practice, the professions that require a diploma vary from one federative entity to 
another.  The main professions subject to this requirement include:  law, architecture, medicine, 
nursing, chemistry, bacteriology, biology, social  and political sciences, anthropology, journalism, 
accountancy, teaching, economics, computer science, engineering, mathematics, and the professions 
of aircraft pilot and social worker. 
191. At national level, the following professional a nd technical services are reserved for Mexican 
citizens:  aircraft pilot, ship's captain, first mate , naval architect, ship's engineer;  crews of Mexican 
flag ships and aircraft;  airport manager, harbour pilot, customs broker, and train crews.131 
192. The diplomas issued by institutions  authorized by  state and federal laws must be registered in 
order to obtain a licence to practice.  Article 13 of the Law Regulating Article 5 of the Constitution 
stipulates that the Federal Executive may conclude agreements with the States in order to harmonize 
professional registration.  The Mexican authorities have noted that as a result of the signature of such agreements the Directorate General of Professions of the SEP has been given the exclusive authority 
to issue licences with nationwide validity. 
193. Provided there is reciprocity in the country of or igin of the applicant, the requirements for the 
registration of diplomas and the issuing of licences for foreigners who have studied abroad include, 
inter alia , the production of a document proving their right of stay and, in the case of residents, a 
notarized copy of a valid immigration document.  In addition, the following documents must be produced:  an official letter confirming the revalida tion of the professional studies issued by the SEP;  
a diploma certified by the country of origin and by the Mexican consulate in the issuing country;  and 
a certificate of exemption from social service or an equivalent le tter issued in the country where the 
studies were pursued.
132 
194. The social service requirement is intended to provide an opportunity for students to pay back 
part of the cost of their education to societ y and to contribute to the academic training and 
professional skills development of the social servi ce provider.  This requirement also applies to 
foreigners and Mexicans who studied abroad.  Within the context of the present Review, the 
authorities have noted that, in accord ance with the legislation in force, alternatives are being sought to 
make this requirement more flexible;  for example,  it has been established that if in the foreigner's 
country of origin or in that in which he/she recei ved his/her higher education social service is not 
required, it will not be required in Me xico.  Moreover, if in the foreigner's country of origin the social 
service system exists and its requirements were satisfi ed, the requirements will also be considered to 
have been satisfied in Mexico.133  Where the health care professions are concerned, before a licence 
                                                      
129 The licence is a personal document author izing the holder to practise a profession. 
130 Law Regulating Article 5 of the Constitution relating to the Practice of Professions in the Federal 
District, published in the Official Journal on 26 Ma y 1945 (latest amendment publis hed on 22 December 1993). 
131 Article 32 of the Constitution and Article 25 of the Shipping and Maritime Trade Law, published in 
the Official Journal on 1 June 2006. 
132 The requirements can be consulted on the SEP's web site:  http://www.sep.gob.mx. 
133 Article 3 of the Regulations on the rendering of the Social Service of students of the institutions of 
higher education in the Mexican Republic, published in the Official Journal on 30 March 1981. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 134 
 
 
can be granted to foreigners, the Directorate Gene ral of Professions of the SEP must ask the Ministry 
of Health to confirm the social service rendered by  the foreigner and, where appropriate, determine 
the place and the form in which this service was performed. 
195. Foreigners and Mexicans who studied abroad mu st also revalidate their diplomas with the 
SEP in order to obtain a licence.134  SEP Decision No. 286 establishes the criteria for the revalidation 
of studies completed abroad.  To qualify for revalida tion, courses of higher education must be at least 
75 per cent equivalent to existing courses in the Mexi can education system.  In the case of foreigners, 
the reciprocity granted by the country in which the studies were completed to studies completed in 
Mexico and the international accreditation of the e ducational institution attend ed will also be taken 
into account.135 
196. Foreigners may practise a profession in Mexico  provided that they satisfy the conditions 
specified in the Law Regulating Article 5 of the C onstitution and subject to the international treaties 
to which Mexico is party.136  Apart from the FTA with Israel, Mexico's free trade agreements 
incorporate provisions on cross-border trade in services and subject the provision of professional services to the principle of reciprocity.  Apart fro m those with Israel, United States and EFTA, all the 
FTAs contain provisions for eliminating nationalit y or permanent residence requirements for the 
granting of licences and certificates to professional service providers of the other Party, as well as for negotiating agreements on the mutual recognition of li cences and certificates for the provision of such 
services. 
197. If there is no relevant agreement, the practice of professions by foreigners is subject to the 
principle of reciprocity in the country from wh ich the applicant comes and compliance with the 
Mexican legislation.
137  The authorities have noted that the countries granting Mexico reciprocity in 
the practice of professions are:  Argentina, Bo livia, Brazil, Colombia, Cuba, Dominican Republic, 
Guatemala, Nicaragua, and Peru.  Reciprocity means that the country from which the applicant comes 
does not impose greater requirements on Mexicans than on its own citizens. 
198. Foreign lawyers can obtain licences to practise in Mexico provided there is a relevant 
agreement between Mexico and their country of origin .  If there is no such agreement, the foreigner 
must revalidate his/her studies, meet the requireme nts laid down by Mexican law and show that the 
principle of reciprocity applies.  If a foreign la wyer obtains revalidation of his/her studies and is 
authorized to practise in Mexico, he/she ma y only advise on Mexican or international law. 
199. In general, only lawyers with a licence to pr actise in Mexico may participate in a law office 
established on Mexican territory.  Nevertheless, provi ded it is stipulated in the professional services 
provisions of an FTA, and subject to the principle of reciprocity, lawyers of the country with which the agreement has been signed who have a licence to practise in that country may enter into 
partnerships with lawyers with a Mexican licence to  practise in the national territory.  A favourable 
resolution from the National Foreign Investment Commi ssion is required for a foreign investment in 
legal services of more than 49 per cent. 
                                                     
 
134 Article 9 of the Law Regulating Article 5 of the Constitution relating to the Practice of Professions 
in the Federal District, published in the Official Journal on 26 May 1945 (latest amendment published on 
22 December 1993). 
135 Points 25 and 35 of SEP Decision 286, published in the Official Journal on 30 October 2000. 
136 Article 15 of the Law Regulating Article 5 of th e Constitution relating to the Practice of Professions 
in the Federal District.  A similar provision can be found in most state laws. 
137 Article 15 of the Law Regulating Article 5 of th e Constitution relating to the Practice of Professions 
in the Federal District.  A similar provision can be found in most state laws. Mexico WT/TPR/S/195/Rev.1 
 Page 135 
 
 
200. Some FTAs signed by Mexico provide for the role of a legal cons ultant through whom 
lawyers of the country with which an agreement has been signed may provide consultancy services 
with respect to the laws of their own country, or international law, or the law of a third country;  however, foreign legal consultant s may not advise on Mexican law. 
201. According to information provided by Mexico  to the WTO Working Group on Professional 
Services, to practise accountancy in Mexico, as in  the case of other professions, foreign accountants 
must revalidate their studies and obtain a licence  issued by the SEP.  In regulated areas of 
accountancy, such as the auditing of financial stat ements for tax purposes, foreign professionals may 
practise in the national territory on condition that th is possibility is provided for in an international 
treaty.
138  There are no restrictions on the mode of establishment or direct foreign ownership of a 
company providing accountancy services in Mexico.139 
202. With regard to engineering services, Mexico is  participating in the development of regional-
level professional qualification accreditation schemes th at facilitate the provision of these services by 
foreign engineers.  For example, within the NA FTA framework, procedures have been agreed for 
granting temporary licences that allow engineers accre dited in any of the three countries party to the 
Agreement to practise in Canada (all provinces), Mexi co (all states) and the United States (state of 
Texas).  Moreover, Mexico is a signatory to th e Declaration of Montealbán, in which several 
Latin American countries and Spain undertook to est ablish systems for the accreditation of engineers 
with a view to mutual recognition that allow for labour mobility between the countries concerned.140 
203. There are no restrictions on the participati on of foreigners in e ngineering consultancy 
partnerships established as Mexican enterprises in acc ordance with the national legislation, except for 
those engineering activities that are regulated by Ar ticles 7 and 8 of the Foreign Investment Law (see 
Chapter II (4)(ii)). 
204. In Mexico it is not necessary to belong to a pr ofessional society to be allowed to practise a 
profession.  In their capacity of advisory bodies and guarantors of high standards of practice within a 
particular profession, the professional societies and asso ciations give opinions on laws and regulations 
relating to the practice of their profession and help to  design the curricula of the institutions of higher 
education.141  They also actively participate in the wo rk of the Mexican Committees for International 
Practice of the Professions (COMPIs), created to ne gotiate agreements on the mutual recognition of 
licences and certificates for the practice of professions under NAFTA. 
                                                      
138 Article 52, I(b) of the Fiscal Code of the Federation. 
139 WTO document S/WPPS/W/7/Add.20 of 16 October 1996. 
140 The Declaration of Montealbán was signed at  the First Latin American Meeting on the 
Accreditation of Engineering Programmes, in Oaxaca, Mexico, on 6 September 2001 , by representatives of 
universities and professional societies of Argentina, Bolivia, Chile, Colombia, Costa Rica, El Salvador, Mexico, 
Paraguay and Spain. 
141 Article 50 of the Law Regulating Article 5 of th e Constitution relating to the Practice of Professions 
in the Federal District. Mexico WT/TPR/S/195/Rev.1 
 Page 137 
 
 
REFERENCES 
 
Mexican Customs Authority ( Aduana México ) (2006), Administración General de Aduanas:  
Facilitación, Simplificación y Competitividad  (General Customs Administration:  Facilitation, 
streamlining and Competitiveness), August, Po werPoint presentation.  Consulted at:  
http://www.comce.org.mx/noticias-pdf /ForoAduanas/Fanny%20Euran.pdf. 
Central Bank of Mexico (2003), Informe Anual 2003  (Annual report 2003).  Consulted at:  
http://www.banxico.org.mx/publicaciones/JSP/informeAnual.jsp. 
Central Bank of Mexico (2004a), Bilateral Trade and Business Cycl e Synchronization:  Evidence 
from Mexico and United States Manufacturing Industries , Working Paper No. 2004-05.  Consulted at:  
http://www.banxico.org.mx/eInfoFinanciera/ DoctosBM/%7BACB7862F-8 B19-495C-834D-0F391D 
8D585D%7D.pdf. 
Central Bank of Mexico (2004b), Informe Anual 2004 (Annual report 2004).  Consulted at:  
http://www.banxico.org.mx/publicaciones/JSP/informeAnual.jsp. 
Central Bank of Mexico (2005), Informe Anual 2005  (Annual report 2005).  Consulted at:  
http://www.banxico.org.mx/publicaciones/JSP/informeAnual.jsp. 
Central Bank of Mexico (2006a), Informe Anual 2006 (Annual report 2006).  Consulted at:  
http://www.banxico.org.mx/publicaciones/JSP/informeAnual.jsp. 
Central Bank of Mexico (2006b), Informe sobre la Inflación, Octubre – Diciembre 2006 (Inflation 
report, October – December 2006).  Consulted at:  http://www.banxico.org.mx/tipopublicaciones/ 
index.html. 
Central Bank of Mexico (2007a), Programa Monetario para 2007 (Monetary programme for 2007).  
Consulted at:  http://www.banxico.org .mx/tipo/publicaciones/index.html. 
Central Bank of Mexico (2007b), Régimen de Política Monetaria (Monetary policy regime).  
Consulted at:  http://www.banxico.org.mx/polmoneinflacion/didactico/regimenPM/RegimenPolitica Monetaria.pdf. 
Mexican Foreign Trade Bank ( Banco Nacional de Comercio Exterior , BANCOMEXT) (2006a), 
Informe Anual 2005  (Annual report 2005).  Consulted at: http://www.bancomext.com/ 
Bancomext/portal/portal.jsp?parent =6&category=3598&document=3860. 
BANCOMEXT (2006b), BANCOMEXT: Avances y logros, enero-noviembre de 2006  
(BANCOMEXT:  Progress and achievements, Jan uary-November 2006), Planning Department.  
Consulted at:  http://www.bancomext.com /Bancomext/publicasecciones/secciones/3848/AvRes 
Nov06.pdf. 
World Bank (2006), Mexico, Financial Sector Assessment Program, A joint initiative of the World 
Bank and the IMF , SecM2006-0548, December.  Consulted at:  http://wbln0018.worldbank.org/FPS/ 
fsapcountrydb.nsf/(attachmentwebFSA)/Mexic o_Update_FSA.pdf/$FILE/Me xico_Update_FSA.pdf. 
World Bank (2007), Doing Business in Mexico 2007 .  Consulted at:  http://www.doingbusiness.org/. 
Inter-American Development Bank, IDB (2004), Privatization in Mexico .  Consulted at:  
http://www.iadb.org/res.  WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 138 
 
 
IDB (2006), La Inserción de México en la Economía Int ernacional:  Integrac ión, Competitividad y 
Desarrollo Regional  (Mexican entry into the global econo my:  Integration, competitiveness and 
regional development), Policy note, Integration a nd Regional Programmes Department, September.  
Consulted at:  http://foropoliticaspublicas.org.m x/docs/Politica%20integracion%20y%20comercio.pdf. 
Centre for Public Finance Studies ( Centro de Estudios de las Finanzas Públicas , CEFP) (2007), 
México:  El Mercado del Maíz y la Agroindustria de la Tortilla  (Mexico:  The maize market and 
tortilla agribusiness) Chamber of Deputies, CEFP/ 004/2007.  Consulted at:  http://www.cefp.gob.mx. 
Social Studies and Public Opinion Centre ( Centro de Estudios Sociales y de Opinión Pública, 
CESOP) (2005), Corrupción y Contrabando en el Sector Textil en México  (Corruption and smuggling 
in the Mexican textile sector), Issue brief No. 5, Chamber of Deputies, United Mexican States.  
Consulted at:  http://www.diputados.gob. mx/cesop/doctos/DRT005%20Corrupcion%20y%20 
contrabando%20en%20el%20sector %20textil%20en%20Mexic.pdf. 
Federal Competition Commission ( Comisión Federal de Competencia , CFC) (2006), Informe Anual  
(Annual report). Consulted at:  http://www.cf c.gob.mx/index.php?optio n=com_content&task 
=blogsection&id=25&Itemid=231. 
Economic Research and Teaching Centre ( Centro de Investigación y Docencia Económicas , CIDE) 
(2005), El Impacto de la Regulación del Comercio Ex terior en la Competitividad y el Bienestar 
Económico  (The impact of foreign trade regulation on competitiveness and economic welfare), Study 
prepared by the CIDE for the Undersecretariat for In dustry and Trade of the Ministry of the Economy, 
Mexico D.F. 
Interministerial Industrial Policy Commission ( Comisión Intersecretarial de Política Industrial , CIPI) 
(2003), Observatorio PyME México:  Primer Reporte de Resultados 2002  (Mexican SME monitoring 
body:  First performance report 2002), Minist ry of the Economy.  Consulted at:  
http://www.cipi.gob.mx/html/reporteanalitico.pdf. 
Federal Regulatory Improvement Commission ( Comisión Federal de Mejora Regulatoria , 
COFEMER) (2007), Informe Anual  (Annual report).  Consulted at:  http://www.cofemer.gob.mx/ 
index.asp?tipo_nav_bar=1&conteni do=2&menu_id=18&content_id=94. 
National Banking and Securities Commission ( Comisión Nacional Bancaria y de Valores , CNBV) 
(2007a), Boletín Estadístico:  Banca de Desarrollo  (Statistical bulletin:  development banks), March.  
Consulted at:  http://www.cnbv.gob.mx. 
CNBV (2007b), Boletín Estadístico:  Banca Múltiple  (Statistical bulletin:  multiple banking 
institutions), June.  Consulted at:  http://www.cnbv.gob.mx. 
National Insurance and Bonding Commission ( Comisión Nacional de Seguros y Fianzas , CNSF) 
(several years), Anuario Estadístico de Seguros y Fianzas  (Statistical yearbook for insurance and 
bonding), Mexico D.F. 
CNSF (2007a), Boletín de Análisis Sectorial  (Sectoral analysis report), April, Mexico D.F. 
CNSF (2007b), Resumen Informativo Trimestral  (Quarterly information summary) March, 
Mexico D.F. 
Energy Regulatory Commission, CRE (2002), InfoCRE newsletter July-August 2002, No. 4.  
Consulted at:  http://www.cre.gob.mx/documento/661.pdf. Mexico WT/TPR/S/195/Rev.1 
 Page 139 
 
 
Economist Intelligence Unit, EIU (2006), Mexico:  Country Report .  Consulted at:  
http://www.eiu.com/. 
Mexican Executive Branch (2006), Sexto Informe de Gobierno, Anexo Estadístico  (Sixth Report of 
the Government,, Statistical annex) (2006).  Consulted at:  http://sexto.informe.fox. 
presidencia.gob.mx/. 
Mexican Executive Branch (2007), Primer Informe de Gobierno, Anexo Estadístico (First Report of 
the Government, Statistical annex) (2007).  Consulted at:  http://www.informe.gob.mx/ANEXO_ 
ESTADISTICO/. 
International Monetary Fund (2005), Mexico:  2005 Article IV Consultation – Staff Report .  Consulted 
at:  http://www.imf.org. 
IMF (2006a), Mexico:  Financial System Stability Assessment Update , IMF Country Report 
No. 06/350, October.  Consu lted at:  http://www.imf.org. 
IMF (2006b), Mexico:  Selected Issues .  Consulted at:  http://www.imf.org. 
IMF (2006c), Mexico:  2006 Article IV Consultation – Staff Report .  Consulted at:  
http://www.imf.org. 
IMF (2007), Country Focus - Mexico:  Finance & Development .  Consulted at:  http://www.imf.org. 
Fortuna (2005), "Redes del contrabando, de la a duana a las grandes tiendas" (Smuggling networks, 
from Customs to major stores), Revista Fortuna . Negocios y Finanzas  (Fortuna  magazine.  Business 
and finance) July.  Consulted at:  http://revis tafortuna.com.mx/opciones/archivo/2005/julio/html/ 
macroeconomia/redes.htm. 
García-Murillo, M., and Pick, J. (2002), Interconnection Regulation in Mexico , Telecommunications 
Policy Research Conference (Alexandria, VA).  Consulted at:  http://www.si.umich.edu/ tprc/papers/2002/58/ppr_Mar_Mexico_telecom_regulation6_after_GITM_for_TPRC_7.pdf. 
Inter Press Service News Agency, IPS (2007), Mexico:  Piracy, contraband account for over half of 
sales in many industries , 3 January.  Consulted at:  http ://ipsnews.net/interna.asp?idnews=26888. 
Morales-Moreno, I. (2004), "Mexico's Agricultural Trade Policies:  International Commitments and 
Domestic Pressure",  Managing the Challenges of WTO Participation:  Case Study 28 , World Trade 
Organization, Geneva.  Consulted at:  http ://www.wto.org/english/res_e/booksp_e/casestudies_e/ 
case28_e.htm. 
Organisation for Economic Co-operati on and Development, OECD (2004), Competition Law and 
Policy in Mexico:  An OECD Peer Review .  Consulted at:  http://www.oecd.org/dataoecd/57/9/ 
31430869.pdf. 
OECD (2005), Economic Survey of Mexico .  Consulted at:  http://www. oecd.org/country/0,3377, 
en_33873108_33873610_1_1_1_1_1,00.html. 
OECD (2006a), Agricultural and Fisheries Policies in México .  Recent Achievements, Continuing the 
Reform Agenda , Paris. WT/TPR/S/195/Rev.1 Trade Policy Review 
Page 140 
 
 
OECD (2006b), OECD's FDI Regulatory Restrictiveness Index:  Revision and Extension to More 
Economies , Working Papers on International Investme nt, No. 2006/4.  Available as working paper 
ECO/WKP(2006)53. 
OECD (2007a), Agricultural Policies in OECD Countries:  Monitoring and Evaluation 2007 , Paris. 
OECD (2007b), Communications Outlook .  Consulted at:  http://www.oecd.org/document/17/ 
0,3343,en_2649_37441_38876369_1_1_1_37441,00.html. 
OECD (2007c), Economic Survey of Mexico .  Consulted at:  http://www.oecd.org/country/ 
0,3377,en_33873108_33873610_1_1_1_1_1,00.html. 
World Trade Organization, WTO (2002), Trade Policy Review:  Mexico , Geneva. 
Reyes de la Torre, L.E., and González, J.G. ( 2006a), "Antidumping and Safeguard Measures in the 
Political Economy of Liberalization:  the Mexican Case" in Finger, J.M., and Nogués, J.J., Safeguards 
and Antidumping in Latin American Trade Liberalization:  Fighting Fire with Fire , Washington, 
D.C., the World Bank a nd Palgrave Macmillan. 
Reyes de la Torre, L.E. (2006b), "Dumping and In jury Margin Calculati on Methods:  Ten Major 
Problems – Country Study:  Mexico", Global Trade and Customs Journal , Vol. 2, No. 1. 
Robertson, Raymond (2007), "Trade and Wages:  Two Puzzles from Mexico", The World Economy , 
Vol. 30, No. 9. 
Ministry of the Economy (2004), Acciones Concretas de la Subsecretaría de Industria y Comercio 
para Incrementar la Competitividad  (Concrete actions of the Undersecretary of Industry and 
Commerce in order to increase competitiv eness), October.  Consulted at:  
http://www.economia.gob.mx/?P=2025. 
Ministry of the Economy (2006a), Alianza para la Seguridad y la Pros peridad de América del Norte:  
Logros  (Security and Prosperity Partnership of North America:  Achievements), 16 June.  Consulted 
at:  http://www.economia.gob.mx. 
Ministry of the Economy (2006b), El TLCAN y el sector agroalimentario  (NAFTA and the agrifood 
sector), International Trade Negotiations  Division, March.  Consulted at:  
http://www.economia.gob.mx/work/snci/negociaci ones/tlcan/pdfs/tlcanagroalimentario.pdf. 
Ministry of the Economy (2006c ), Sexto Informe de Labores 2006 (Sixth activity report 2006).  
Consulted at:  http://www.economia.gob.mx. 
Ministry of the Economy (2007), Estrategia de Negociaciones Comerciales Internacionales  
(International trade negotiations strategy), Intern ational Trade Negotiations Division, PowerPoint 
presentation.  Consulted at:  http://www. economia.gob.mx/work/snci/negociaciones/ 
publicaciones/neg-comer/neg-com-feb.ppt. 
Ministry of Energy (2006a), Prospectiva del Mercado de Gas Natural 2006-2015 (Outlook for the 
natural gas market 2006-2015).  Consulte d at:  http://www.energia.gob.mx/webSener/ 
portal/index.jsp?id=48. 
Ministry of Energy (2006b), Prospectiva de Petrolíferos 2006-2015 (Outlook for petroleum products 
2006-2015).  Consulted at:  http://www.energi a.gob.mx/webSener/portal/index.jsp?id=48. Mexico WT/TPR/S/195/Rev.1 
 Page 141 
 
 
Ministry of Energy (2006c), Prospectiva del Sector Eléctrico 2006-2015  (Outlook for the electricity 
sector 2006-2015).  Consulted at:  http://www.en ergia.gob.mx/webSener/portal/index.jsp?id=48. 
Ministry of Finance and Public Credit ( Secretaría de Hacienda y Crédito Público , SHCP) (2007a), 
SHCP press release No. 081 of 16  September 2007.  Consulted at:  http://www.shcp.gob.mx/. 
SHCP (2007b), Criterios Generales de Política Económica 2007  (General economic policy criteria 
2007).  Consulted at:  http://www.apartados.haci enda.gob.mx/politica_economica/html/criterios 
_politica.html. 
SHCP (2007c), Informe de Labores 2007  (Activity report 2007).  Consulted at:  
http://www.shcp.gob.mx/. 
SHCP (2007d), Iniciativa de Ley de Ingresos de la Federación para el Ejercicio Fiscal 2008 (Draft 
Federal Revenue Law for 2008).  Consulted at:  http://www.apartados.hacienda.gob.mx/ 
presupuesto/temas/ppef/2008/temas/ex po_motivos/ingresos/ilif_2008.pdf. 
SHCP (2007e), Iniciativa de Ley de Ingresos y Proyecto de  Presupuesto de Egresos de la Federación 
para 2008 (Draft Revenue Law and Draft Federal Budget of Expenditure for 2008).  Consulted at:  
http://www.apartados.hacienda.gob.mx/novedades/espanol/docs/2007/Presentaciones/presentacion_
secretario_paquetecono mico_03102007.pdf. 
United States Trade Representative, USTR (2007), Schwab Signs Textile Customs Cooperation 
Agreement with Mexico , Press release, 26 January.  Consulted at:  http://www.ustr.gov/Document_ 
Library/Press_Releases/2007/Ja nuary/Schwab_Signs_Textile_Cust oms_Cooperation_Agreement_with_
Mexico.html. 
Zabludovsky, J. (2005),"El TLCAN y la Política de Comercio Exterior en México:  Una Agenda 
Inconclusa" (NAFTA and Mexican foreign trade policy:  An unfinished agenda), Información 
Comercial Española , ICE (Spanish Trade Information), No. 821, March-April.