RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/195 
7 January 2008  
 
(08-0040) 
Trade Policy Review Body Original: Spanish 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
MEXICO 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Mexico is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Mexico. Mexico WT/TPR/G/195 
 Page 3 
 
 
 CONTENTS 
 
  Page 
 
INTRODUCTION 5 
I. ECONOMIC ENVIRONMENT 5 II. AN OPEN TRADE POLICY:  ONE OF THE CENTRAL ELEMENTS OF MEXICO'S 
DEVELOPMENT STRATEGY 8 
III. MEXICO AND THE MULTILATERAL TRADING SYSTEM 10 IV. TRADE POLICY 11 
A. Tariffs 11 
B. Customs procedures 11 C. Standards 12 
D. Services 13 
E. Investment 14 
F. Intellectual property 15 
G. Competition policy 15 
H. Regulatory improvement 16 I. Government procurement 18 
V. BILATERAL AND REGIONAL AGREEMENTS 18 
 
CONCLUSIONS 19 
 Mexico WT/TPR/G/195 
 Page 5 
 
 
 INTRODUCTION 
 
1. Since its last trade policy review, Mexico has continued with its open trade policy combining 
unilateral liberalization, a broa dening of benefits under Free Trade Agreements (FTAs), the 
conclusion of further trade agreements, a steady driv e towards an environment which fosters trade and 
investment and determined support for the Doha Round negotiations at the World Trade Organization 
(WTO). 
2. This presentation is divided into six sections .  The first deals with Mexico's economic 
environment.  The second explains how the opening up of trade has become one of the pivots both of 
Mexico's strategy of integration into the interna tional economy and of its deve lopment.  The third is 
concerned with the importance of the multilateral trad ing system for Mexico in an increasingly inter-
dependent world.  The fourth describes the most im portant elements of its trade policy.  The fifth 
covers the trade agreements to which Mexico is party.  The final section presents the conclusions. 
I. ECONOMIC ENVIRONMENT 
3. Over the last five years the Mexican economy has gradually returned to sustained growth.  
Between 2002 and 2005 annual growth in Gross Dom estic Product (GDP) increased from 0.8 per cent 
to 2.8 per cent in real terms.  In 2006, Mexican GDP grew by 4.8 per cent in real terms. 
4. In 2006, as in 2004 and 2005, domestic expend iture, production and employment benefited 
considerably from the expansion in oil and non-oi l exports and receipts from family remittances.  
However, the slowdown in the United States' econom y in 2007 and similar projections for 2008 could 
result in a slowdown in Mexico's growth rate in the near future. 
5. External trade has had an increasingly large im pact on Mexico's growth.  Between 2002 and 
2006, total trade rose from 50.9 per cent to 60.3 per cent of GDP.  During this period total exports rose from US$161 billion to US$250 billion, suggesti ng an average growth rate of 11.6 per cent. 
6. Mexico's exports are widely spread ove r the various areas of economic activity. 
7. On the one hand, exports of crude oil have been  particularly robust over the last four years 
with an average annual growth of 27 per cent, booste d by high international prices for crude oil.  
Moreover, non-oil exports also performed well as a whole.  Among the sectors where exports 
performed best the highlights are exports in the au tomotive sector (average annual growth of 15.6 per 
cent), steel and mineral-metallurgy industries (30.5 per cent) and the chemicals and plastics industries 
(14.7 per cent average annual growth).  By contra st, exports in the textiles industry fell over the 
period from 11 billion dollars in 20 02 to 9.3 billion dollars in 2006 (-4.2 per cent annual fall).  The 
proportion of exports from Mexico represented by th e maquiladora (in-bond) industry has remained 
steady at 48 per cent over the period 2002-2006. 
8. The principal exporting sectors in 2006 were el ectrical and electronic equipment and devices 
(US$56.3 billion);  the automotive industry (US$53.1 billion);  exports of crud e oil (US$34.7 billion);  
special equipment and machinery for various indu stries (US$27.8 billion);  and the textile and 
footwear industry (US$89.3 billion). 
9. Products imported by Mexico in 2006 comprised principally electrical and electronic 
equipment and devices (US$55.9 billion);  special equipment and machinery for various industries 
(US$36.2 billion);  products for the chemicals a nd plastics industry (US$32.4 billion);  and products WT/TPR/G/195 Trade Policy Review 
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for the automotive industry (US$31.3 billion).  The composition of imports by target that year was 
14.4 per cent final consumer goods, 73.6 per cent intermediate goods and 11.9 per cent capital goods. 
10. The deficit in Mexico's trade balance experi enced a slight reduction during the period 
2002-2006 and fell from US$7.6 billion to US$6.1 billion.  This deficit represents only 0.7 per cent of 
GDP and is due to the combination of the following factors: 
i. A strong and growing surplus with trading partners in NAFTA (US$79.3 billion in 
2006). 
ii. A near balance in trade with the other c ountries of the American continent (a deficit 
of US$1.2 billion in 2006) and; 
iii. A large deficit in the balance of trad e with Europe (US$20.6 billion) and Asia 
(US$63.5 billion).  Of note is the increase in the trade deficit with Asia, which in the main reflected trade with Ch ina (US$22.8 billion).  It should be noted that China 
continues to be the second-ranking supplier of goods to our country and the country 
with which Mexico has the greatest bilateral trade deficit. 
11. Where trade in services is concerned, receipts obtained from non-factor services
1 grew at an 
average annual rate of 6.4 per cent between 2002 an d 2006, and stood at US$16.2 billion in 2006.  At 
the same time expenditure under this heading grew at an average annual rate of 7.4 per cent to stand at 
US$22.3 billion in 2006.  Thus, the deficit in trade in non-factor services fell to US$6.1 billion. 
12. The Mexican economy attracted flows of Fo reign Direct Investment (FDI) totalling 
US$21.7 billion in 2002, US$15.3 billion in 2003, US$22.3 billion in 2004, US$19.6 billion in 2005 
and US$19.2 billion in 2006.  The composition of FD I by target in 2002 was 41.0 per cent to the 
manufacturing sector, 31.9 per cent to financial se rvices and 7.5 per cent to the transport and 
communications sector (the remainder went to ot her sectors, including trade).  The corresponding 
figures for 2006 were 57.5 per cent to the manufactur ing sector, 16.9 per cent to financial services and 
2.5 per cent to transport and communications. 
13. The export sector and FDI continue to be am ong the main sources of new jobs and made a 
significant contribution to the growth in formal employment in 2006 (the number of members of the 
Instituto Mexicano del Seguro Social  (Mexican Social Security Institute) rose by 6.24 per cent).  
Overall, jobs related to export activities pay 37 per cent more than the rest of the economy and 
maquiladora (in-bond assembly) plants pay 3.5 times the Mexican minimum wage. 
14. Where the fight against poverty is concerned, note should be made of the " Programa 
Oportunidades " (Opportunities Programme) which has been ope rational since 1997;  its purpose is to 
provide support for education, health, nutrition and income and thereby develop the capacity of 
families living in poverty and extreme poverty.  Th e percentage of the population living in poverty 
fell from 39.4 per cent in 2002 to 31.7 per cent in 2006 while the population living below the "indigence" line fell from 12.6 per cent to 8.7 per cent over the same period. 
15. Macroeconomic policy has been governed by the basic principles of fiscal discipline and price 
stability.  In particular, monetary policy based on inflation objectives h as been highly successful, 
                                                     
 
1 Non-factor services include recei pts and expenditure from the prov ision of various services which 
hold real and financial assets such as transport, accommodation, insurance and fo odstuffs, among others.  
Receipts from factor services  include receipts from ownership of real or financial assets which residents of 
Mexico hold abroad, as well as income held in Mexico by non-residents. Mexico WT/TPR/G/195 
 Page 7 
 
 
 enabling inflation to fall from 5.7 per cent in December 2002 to 3.33 per cent by the close of 2005.  
Subsequently in 2006 inflation stood at 4.05 per cent and was influenced by significant increases in the prices of corn tortillas and sugar. 
16. As regards exchange-rate policy, since 1995 the exchange rate has been determined freely by 
market forces and has fluctuated between 9.0 a nd 11.6 Mexican pesos per US dollar over the period 
2002-2006.  The balance of international reserves held by the Bank of Mexico has continued to 
increase, and rose from US$48 billion in 2002 to US$67.7 billion in 2006. 
17. The prime objective of the Government of Mexi co is to increase economic growth in a 
sustainable way and it is committed to promoting and implementing the structural reforms necessary 
to boost competitiveness in the production chains in the domestic market, reduce energy prices, 
increase the level of education of the workforce and, among other things, improve infrastructure. 
18. With that in mind, in order to establish a mode rn structure of institutions which will make it 
possible to meet the country's needs in terms of  public safety, regional development, combating 
poverty, education, health, housing and investment in infrastructure, on 12 September the Congress approved a reform of the public finances.  The reform is based on four pillars: 
i. Tax Administration:  facilitate compliance and combat fiscal evasion more 
effectively. 
ii. Public Spending:  establish an institutiona l structure to ensure that expenditure is 
targeted at achieving more efficient and tr ansparent outcomes in the three levels of 
government while at the same time en couraging efficiency and restraint. 
iii. Fiscal Federalism:  provide states and municipalities with better instruments and 
incentives for establishing a relationship b ased on joint responsibility between all 
levels of government, and 
iv. Government Revenue:  lay down the bases  for a tax system whereby oil revenue can 
be replaced by more stable sources of income using natural schemes which foster investment, job creation and economic growth.   
19. In mid-2007 the Mexican Government established the Programa Nacional de Infraestructura  
– National Infrastructure Programme 2007-2012 which lays down the objectives, targets and measures 
which the Federal Government will promote to in crease coverage, quality and competitiveness in this 
sector, which is of strategic importance to nati onal development.  The programme takes up the 
challenge of constructing a sound, modern an d extensive infrastructure, supporting increased 
investment and mapping out measures with an  overall view and a long-term perspective.
2 
20. However, despite the stability of the macr oeconomic figures, our country faces major 
challenges if it is to make its economy more competitiv e, and that is why efforts have been prioritized 
to complete structural reforms in various sectors such as education, energy and telecommunications. 
21. By using a combination both of the above and a sound macroeconomic policy, Mexico is 
positioning itself to cope with a less favourable worl d environment in the coming years, the result of 
the projected slowdown in the economies of its prin cipal trading partners and greater instability in 
world financial markets.  To that end, Mexico  is implementing a competitiveness agenda which 
                                                      
2 http://www.infraestructura.gob.mx/. WT/TPR/G/195 Trade Policy Review 
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among other things includes aspects relating to regulatory improvement, trade facilitation and 
competition policy. 
II. AN OPEN TRADE POLICY:  ONE OF THE CENTRAL ELEMENTS OF MEXICO'S 
DEVELOPMENT STRATEGY 
22. It was over 20 years ago that Mexico began opening up its trade with the implementation of a 
number of unilateral policies and its accession to  the General Agreement on Tariffs and Trade 
(GATT) in 1986.  Since then it has been in creasing its presence on international markets, and 
activities related to external trade have grown to the extent that they currently account for nearly 
two thirds of its GDP. 
23. Bilateral, regional and multilate ral negotiations have yielded pr eferential conditions for access 
to markets in goods and services over third countri es.  There is currently a network of 12 FTAs 
providing secure, preferential access to the mark ets of 44 countries, over one billion potential 
consumers and three-quarters of world GDP.  There are also six Economic Complementarity 
Agreements (ECAs) and there are 23 Reciprocal Investment Promotion and Protection Agreements (APPRIs) in force, which provide legal certainty bo th for Mexican investments abroad and for foreign 
investment in Mexico. 
24. This has promoted development in the export sect or, one of the principal drivers of economic 
growth and better paid jobs in Mexico.  Exports  rose from US$26.7 billion in 1985 to US$250 billion 
in 2006. 
25. The significant reduction in or elimination of tariffs and other barriers to trade in imported 
goods and services has encouraged a reduction in production costs for inputs, machinery and 
equipment, and this in turn acts a stimulus for t echnological exchange as well as providing consumers 
with a greater and more varied supply of high-quality goods and services at international prices. 
26. This translates into comparative advantages for Mexican products which incorporate those 
inputs.  Over 85 per cent of Mexican imports  are intermediate and capital goods which are 
instrumental in the production and export of merchandise. 
27. Legal certainty and security has been conducive to attracting greater flows of FDI and to 
increasing investment abroad by Mexicans.  As noted above, in 2006 Mexico received US$19.2 billion in FDI while it made investments abroad of over US$35 billion.  Between 2002 and 
2006, FDI in Mexico increased by US$73.4 billion ( 47 per cent) while investment abroad by Mexico 
rose by US$22.8 billion (182 per cent). 
28. Mexico is intent on involving more firms in e xport activities, since experience shows that this 
is a successful way to boost sales, create better-paid employment and modernize domestic industry.  It 
also opens up possibilities of accessing new markets a nd quality inputs and creati ng strategic alliances 
which promote access to new technologies for the production industry.  The 21,477 exporters in Mexico in 1993 had risen to 36,094 in 2006, an incr ease of 68.1 per cent.  However, it is anticipated 
that there will have to be 80 thousand exporters by  the end of 2012 if the goals of diversifying and 
boosting the country's penetration in inte rnational markets are to be achieved. 
29. Accordingly, the economic policy of this government, in accordance with the National 
Development Plan 2007-2012, seeks to increase th e productivity and competitiveness of the economy 
using a comprehensive strategy aimed at achievi ng sustained economic growth and stepping up job-
creation in the form of an overarching public policy framework. Mexico WT/TPR/G/195 
 Page 9 
 
 
 30. In view of this, a foreign trade policy aimed at further opening up trade policy will help 
increase the country's competitiveness , reduce costs of production and formalities for foreign trade 
transactions and will enable inputs to be obtained at  lower prices, resulting in lower costs for Mexican 
exporters and consequently an increase in Mexico's competitiveness. 
31. To be specific, under the framework of Mexico 's external trade policy an agenda will be 
implemented with a view to deepening open trade pr actices through unilateral liberalization measures 
and participation in the multilateral trading system , new trade negotiations with strategic partners, 
greater promotion of exports and attraction of i nvestment and defence of our country's commercial 
interests under bilateral and multilateral instrument s.  Mexico will also, where feasible, seek to 
implement an agenda for convergence between the tr ade agreements which Mexico has in place, with 
the aim of making it easier for economic operators to exploit them. 
32. The external trade measures outlined above w ill aim to supplement the trade and industrial 
development policy framework being introduced by Mexico and to support Mexico's production 
structures sectorally.  The broad outlines of the measures are summarized below: 
i. Traditional Industries:  We are seeking to reconvert and/or modernize traditional 
industries to improve conditions with a view  to integrating them effectively in the 
globalization movement by drawing up sectoral agendas to increase their competitiveness. 
ii. High-Technology Industries:  Scaling of  production towards activities with greater 
value-added associated with technological  invention, design  and development 
through the establishment of sectoral age ndas to raise the competitiveness of the 
sectors involved. 
iii. Services:  Make Mexico a hub for services with special emphasis on information 
technologies and logistics. 
iv. Trade deregulation.  Greater reduction in operating costs and streamlining of 
administrative formalities for enterprises in  Mexico via trade facilitation, regulatory 
improvements and competition policy. 
33. Mexico's agenda for trade negotiations will ther efore have to support the above measures, and 
to that end Mexico will continue to promote the Doha Round negotiations and to focus on partners 
which help it achieve those ends. 
34. Measures to incorporate higher domestic value a dded per unit exported have been established 
so as to maximize the benefits of the penetration of  Mexican products on international markets.  The 
supply of inputs to export firms is one way of pr omoting the international integration of domestic 
firms. 
35. A number of sectoral initiatives are worthy of no te in that regard, among them the ITA-Plus 
Program which promotes greater local integration by establishing primary linkages within production 
chains in the computer and telecommunications sectors, since these include, in addition to 
subassemblies raw materials such as steel and other metals, plastics and chemicals. WT/TPR/G/195 Trade Policy Review 
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III. MEXICO AND THE MULTILATERAL TRADING SYSTEM 
36. Mexico is a founding Member of the WTO.  We consider the WTO to be the main 
mechanism for both trade liberalization and the est ablishment of a legal framework based on world 
trade rules.  The opening up of Mexico's trade and its participation in the multilateral trading system 
continue to play a very important role in boosti ng its exports, spurring the economy and stimulating 
employment. 
37. With a view to achieving greater openness a nd opportunities for developing countries and to 
strengthening the multilateral trading system, Mexico has been a great promoter of the Doha Development Round, even before it was la unched in November 2001.  Mexico hosted the 
Fifth WTO Ministerial Conference in 2003;  and it has actively sought to adopt conciliatory positions 
conducive to agreements on various negotiating fronts.  Mexico's chairmanship of the negotiations on 
services and the role played by th e country in the dispute settlement  negotiations are clear examples 
of its commitment to the multilateral trading system. 
38. Mexico also has a systemic interest in making the Doha Round a success.  Despite its 
extensive network of FTAs, its external trade is lik ely to suffer if the multilateral trading system is 
weakened and subject to the tensions resulting from greater recourse to the dispute settlement 
mechanism.  Mexico would not be immune to an  increase in protectionist pressures among its main 
trading partners.  This is due not only to the fact  that Mexico is among the top ten exporting countries 
in a significant number of sectors, both agricultura l and industrial, but also to the fact that 
protectionist measures would have a depressive effe ct on world revenue and may affect Mexico as the 
contractions in the main world economies did between 2001-2003. 
39. As far as the exploitation of new markets is c oncerned, it should be noted that countries with 
which Mexico does not have an FTA are precisely the ones from which imports are increasing most quickly and whose economies are growing most rapi dly at world level.  Several of them have 
significant restrictions in place on imports of goods and services in respect of which Mexico has a comparative advantage.  To that end the negotia tions on trade liberalization and facilitation for our 
industrial and agricultural goods and our services under the Doha Round represent an opportunity to 
provide economic agents with the certainty that a specified level of openness will apply in their 
markets and that trade will be conducted in co mpliance with the rules agreed multilaterally. 
40. There are in addition some matters not cove red by the FTAs whose resolution during the 
negotiations is of vital importance, in particular internal aid and subsidies for agricultural exports, 
stricter antidumping disciplines and trade facilitation issues.  Furthermore, a number of FTAs exclude 
products of interest to Mexican exporters from their scope, especially in the agricultural sector. 
41. Furthermore, in the light of the proposal by the Government of President Felipe Calderón to 
continue the process of world integration in order to consolidate the country's competitive position in 
its principal markets and strengthen the search fo r new opportunities for trade and investment, the 
WTO is an appropriate forum for reducing bias against exports by way of greater openness as 
achieved through this round of negotiations. 
42. The Doha Round is also an excellent opportunity to tackle systemic issues which, regardless 
of our current trade interests, will be extremel y important when determining the validity of the 
multilateral trading system in the coming years. 
43. Mexico's priority in this Round is for the "Dev elopment Dimension" to benefit all developing 
countries which are Members of the WTO without dr awing distinctions between them and without 
creating a sub-category of membership. Mexico WT/TPR/G/195 
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 44. Finally, the dispute settlement mechanism has prov en to be an effective, essential tool for 
dealing with the concerns of the government a nd of our production and export sectors when other 
countries have adopted illegal measures which adversel y affect our trade or systemic interests and it 
provides us with the opportunity to defend measures adopted by Mexico which are challenged by 
other Members of the Organization. 
45. Mexico is the sixth most prolific user in th e world of the dispute settlement mechanism and 
the second most prolific in Latin America.  It is  fighting to strengthen the system because the main 
beneficiaries of a stranger mechanism have been the developing countries. 
IV. TRADE POLICY 
A. Tariffs 
46. The period 2002-2006 saw Mexico continuing to open up its trade both unilaterally and under 
regional agreements. 
47. The challenges raised by a more competitive wo rld environment brought a need to reassess 
trade policy so as to reduce the costs of inputs requi red by producers and expor ters, particularly where 
those inputs are from countries with which Mexico does not have an FTA.  As stated above, the 
WTO Member countries with which Mexico does not have an FTA are precisely the ones whose 
economies have grown the most and will continue to grow.  For that reason Mexico regards it as 
essential to supplement its FTAs with a general po licy to support trade openness at the multilateral 
level. 
48. To that end, on 29 September 2006 Mexico un ilaterally reduced its Most Favoured Nation 
(MFN) tariffs for 6,089 tariff headi ngs, the aim being to reduce the cost of raw materials for the 
principal industries producing final goods, remove tariff discrepancies and reduce incentives to evade 
payment of tariffs.  In the vast majority of cases the reduction in the tariff ranged from about 30 to 33 per cent. 
49. Mexico has continued to promote its e xports in a manner consistent with the 
WTO Agreements.  The IMMEX Program, which en tered into force on 1 November 2006 under the 
Decree for the Development of the Manufacturi ng, Maquiladora (In-Bond) and Export Services 
Industry, consolidates the pre-existing PITEX and Maquila Programs by streamlining procedures and 
reducing the administrative costs associated with th em.  Support consists in automatic repayment of 
value added tax (VAT) and of any tariff paid on im ported goods which are incorporated into exports. 
B. Customs procedures 
50. The process of customs modernization embarked  upon a number of years ago remains one of 
the main strategies for enabling Mexico to enhan ce its importance as a strategic centre for attracting 
investment and developing productive activities at the international level.  Of note among the most 
recent steps forward is the implementation at the be ginning of March 2007 of the Plan to Modernize 
Customs for Competitiveness under which efforts w ill be redoubled in several fields, including 
investment in infrastructure and technology;  st reamlining of the legal, regulatory and operating 
framework of external trade;  cooperation with the private sector and national and foreign authorities;  
and contribution to stre ngthening national security. 
51. As part of the drive to achieve an interna tional trading system which satisfies economic 
operators' new needs for a more rapid flow of goods in  an environment of greater certainty, Mexico is WT/TPR/G/195 Trade Policy Review 
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in the process of implementing the standards to facilitate more efficient and reliable global trade 
which were adopted in 2005 in the framework of  the World Customs Organization (WCO), along 
with initiatives to facilitate secure and efficien t trade agreed under the Asia-Pacific Economic 
Cooperation (APEC) mechanism. 
52. Mexico is working with the USA to implement the Bilateral Strategic Plan on Customs which 
was signed in August 2007.  The Plan has seven  strategic objectives covering issues such as 
cooperation to increase the integrity of customs st aff, the automation of all customs dispatch 
processes, coordination of daily operations and infrastructure projects on the common border, the 
expansion of the two exclusive FAST/Exprés lan es programmes;  strengthening of measures 
concerning the application of laws providing for jo int, more effective action to combat smuggling, 
customs fraud and related offences;  increased  cooperation in security matters, especially for 
consignments of goods whose nature requires them  to be subject to special checks;  and the 
establishment of programmes to resume trading/ customs activities in the event of disaster or 
emergency.   
53. Mexico has likewise made significant progress in transparency, the implementation of 
schemes for businesses issuing certification, the app lication of information technologies for import 
and export formalities, the establishment of facilitie s for temporary import, and the development of 
more sophisticated risk manageme nt systems, clearance of urgent  shipments, integrity, advance 
rulings and appeal procedures.  However, efforts must be ongoing in order to deepen and expand  
trade facilitation activities nationally and internationa lly to ensure that the benefits of facilitation 
result in more and better business opportunities for national industry, and that is why Mexico is 
participating in and has a great deal of interest in  the conclusion of the trade facilitation negotiations 
currently under way in the framework of the Doha Round. 
C. Standards 
54. During the period covered by the review, a numb er of amendments were made to technical 
regulations and standards. 
55. July 2006 saw reforms of the Federal Law on Metrology and Standardization (LFMN) which 
made the Ministry of the Economy the body responsi ble for the Law's implementation (Article 1) and 
laid down the composition of the Governing Board of  the National Metrology Ce ntre (Article 32), its 
assets structure (Article 37), and the structure of the National Standardization Commission (Article 59). 
56. The web-page of the Ministry of the Economy's General Directorate of Standards (DGN), 
which was established in 1997, sets out information related to activities in the areas of metrology, 
national and international standard ization, conformity assessment (approval and certification), quality 
and promotion.  Additionally, notifications of WTO draft standards and FTAs entered into with 
Mexico can be accessed, national standardization ( catalogue of Standards) ca n be consulted and the 
official designations " calidad suprema " (supreme quality) and " hecho en México " (made in Mexico) 
studied, as can the requirements for obtaining the Código de Identificación del Fabricante 
Internacional  (International Manufacturer Identity Code). 
57. In 2001, with a view to enhancing transpar ency, the DGN established a legal framework for 
the creation and operation of National Consultativ e Committees for Standardization (responsible for 
developing official Mexican standards or NOMs) and National Technical Committees for 
Standardization (responsible for developing vol untary Mexican standards or NMXs) and the 
involvement of Mexican committees in internationa l organizations.  There are currently 24 National Mexico WT/TPR/G/195 
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 Consultative Committees for Standardization r esponsible for developing NOMs, 34 National 
Technical Committees for Standardization responsible  for developing NMXs and two Standardization 
Committees responsible for developi ng benchmark standards (NRFs). 
58. To facilitate international trade and boost c onsumer confidence, the DGN intends to review 
some 300 NOMs and 1,000 NMXs to examine how consis tent they are with the relevant international 
standards. 
D. Services 
59. Mexico recognizes the huge importance of services to GDP and employment;  indeed, they 
represent 70 per cent of total GDP and 63 per cent of employment.  Mexico is also aware of their vast 
potential as a spur to the national manufacturing sector. 
60. Any development strategy in the information economy must be solidly based in a dynamic, 
efficient services sector which complements the nati onal strategy.  Accordingly, trade policy in the 
sector has been targeted at strengthening the inte rnal legal framework and integrating services in the 
world economy.  During the period 2000-2006, Me xico supported openness in the sector at 
international level. 
61. Since the opening of the Doha Round, Mexi co has been an actively involved in the 
negotiations of the Special Session of the Council for Trade in Services, which it currently chairs, and 
in the bilateral and the ongoing plur ilateral negotiations at the WTO.  As regards the subsidiary bodies 
of the General Agreement on Trade in Services ( GATS), of note are the proposals it submitted to the 
Working Party on Domestic Regulation and the Working Party on GATS Rules, specifically in 
discussions on subsidies. 
62. At bilateral and regional level, Mexico c ontinues to support the full implementation and 
administration of commitments relating to cross-border trade in services set out in its FTAs. 
63. The services sector in Mexico has recently been highlighted as pa rt of a strategy to increase 
national competitiveness.  Accordingly, Mexico  is seeking greater market openness in dynamic 
sectors such as information technology services, m ovement of physical persons, distribution, 
construction, maritime transport services and trade in services generally.  Similarly, Mexico is 
continuing its efforts to increase the competitiven ess of financial services and services related to 
telecommunications infrastructure.  Both sectors ha ve experienced a surge during the last decade. 
64. Changes in the regulatory framework aimed at  improving competition have been adopted and 
implemented in the telecommunications services sector over recent years.  In the light of the National 
Development Plan (2001-2006) and the Sectoral  Program for Communications and Transport 
(2001-2006) and in compliance with the Fede ral Telecommunications  Law, the Federal 
Telecommunications Commission (COFETEL) has carried out a wholesale review of the regulatory framework governing the exchange of international tra ffic in order to bring it into line with the new 
technological environment and to satisfy users' need s.  In that regard, on 15 June 2004 the plenary 
meeting of COFETEL decided to repeal the Intern ational Long Distance Rules and to issue the 
International Telecommunications Rules which, am ong other things, introduced greater streamlining 
in formalities for international long distance servi ces, abolished the proportional return system and 
uniform settlement rates.  Furthermore, with a view to guaranteeing user satisfaction, COFETEL 
issued the Basic Technical Quality Plan  for Mobile Local Service Networks. WT/TPR/G/195 Trade Policy Review 
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65. Opening up services such as long distan ce and public telephony to competition and 
investment in the telephony infrastructure led to an increase in the number of fixed lines3 over the 
period 1997-2006.  Mobile telephony saw greater grow th in that period.  Despite changes in the 
density of fixed and mobile telephony, figures are lowe r than in other countries with a similar level of 
economic development.  There has also been cons iderable growth in Inte rnet access in Mexico.4  
Nonetheless, levels of Internet penetration are lowe r than in other developing countries.  Given that 
access to telecommunications services is a key aspect of social and economic development, the Government is continuing its efforts to est ablish public policies encouraging access to them. 
66. Specific measures have been implemented sin ce 2007 to achieve greater competitiveness in 
the sector.  In October that year the program on fre quency bands which will be the subject of tenders 
in 2008 was published.  Additionally, to promote the efficient use of existing networks and encourage 
the competitiveness of inter-urban transport, th e Federal Electricity Commission (CFE), the State 
body responsible for supplying electricity, will s upply wholesale telecommunications services through 
its fibre optic network.
5 
67. The objective of Mexico's policy in this sector is currently to increase access to 
telecommunications services to a greater proportion of  the population and to supply a greater diversity 
of better quality services for better prices in a framewo rk of competition and free market participation.  
The Government is promoting strategies to (a) in crease competition among suppliers of services;  
(b) encourage tariffs to enable a greater number of users to access the service;  (c) develop the 
mechanisms and conditions neces sary to encourage greater investment in telecommunications 
services infrastructure and foster e fficient use of the existing infrastructure;  (d) propose methods of 
funding and self-sustainability with a view to en couraging development and execution of projects 
using information technology (IT);  and (e) pa rticipate alongside soci ety in the design and 
development of strategies to facilitate the use of  information and communication technologies (ICT). 
68. The Government has also embarked upon wo rk to review the regulatory framework 
governing telecommunications and the structure of  COFETEL, with a view to improving competition. 
E. Investment 
69. The Foreign Investment Law (LIE) establishes that activities not expressly mentioned therein 
are fully open to FDI, and FDI may therefore be up to 100 per cent.  The LIE was amended on 18 July 2006 to reduce the number of restricted ac tivities and thereby achieve further liberalization. 
70. As a result of that amendment it has been possibl e since 18 July 2006 to invest up to 100 per 
cent in the capital of financial leasing companie s, financial factoring houses and limited scope 
financial companies. 
71. Moreover, between 2002 and 2007 Mexico si gned two FTAs containing a chapter on 
investment:  with Uruguay (entered into for ce on 15 July 2004) and Japan (in force since 
1 April 2005).  The two chapters on investment ar e modelled on Chapter XI of the North American 
Free Trade Agreement (NAFTA). 
                                                     
 
3 The number of lines went from 9.2 million to nearly 20 million, and per capita density rose from 
9.8 to 18.9. 
4 In 2001 Mexico had approximately 2 million subscribers;  at the end of 2006 there were over 
5 million. 
5 The CFE's national fibre optic network measures 21,400 km., making it the second largest inter-urban 
transport network in the country;  the largest extend s over some 30 thousand kilometres and is owned by 
Teléfonos de México (Mexico Telephones – TELMEX). Mexico WT/TPR/G/195 
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 72. Ten APPRIs were negotiated dur ing the period under review.  As of September 2007 Mexico 
had 23 APPRIs in force and two in the process of being implemented. 
73. Free trade agreements and investment agreements  establish a framework of clear, transparent 
rules which provide legal protection on a recipro cal basis for capital flows to the production sector 
and promote diversification in investment flows. 
F. Intellectual property 
74. Although Mexico already has a sound legal and institutional basis as regards intellectual 
property, during the period under review significant progress continued to be made in the protection 
of intellectual property rights in the form of various adjustments and amendments which were 
approved with a view to furthering the protection of  intellectual property rights in the country;  the 
legislative instruments concerned were notified to the WTO in 2006. 
75. Nationally, the Instituto Mexicano de la Propiedad Industrial  (Mexican Industrial Property 
Institute – IMPI) opened regional offices in strategi c locations in the Mexican Republic to make its 
services more local and deal with individuals in person;  the offices cover the Northern, Western, 
El Bajío and South-Eastern regions and serve 24 of the 32 States of the Republic. 
76. At the multilateral level, in 2001 Mexico acceded to six industrial property treaties 
administered by the World Intellectual Property Organization (WIPO).  In 2004 it published reforms to the Patent Cooperation Treat y (PCT) and its Regulations. 
77. At the bilateral level, all the FTAs signed by Mexico in this period contain a chapter on 
intellectual property and worth of note among them are the agreements concluded with Japan and 
Uruguay;  in addition, Mexico has concluded sev eral cooperation agreements with authorities and 
bodies in this field. 
78. Also of note is the deepening of relations with the European Communities (EC) through the 
European Patent Office, with which it concl uded Memoranda of Unde rstanding on Bilateral 
Cooperation for the periods 2004-2006 and 2006-2009. 
79. With a view to strengthening the protection of  intellectual property rights and addressing the 
international commitments established under the Security and Prosperity Partnership of 
North America (SPP), the Divisional Office of Well-Known Marks (Investigation, Control and Document Processing) was established within IMPI in  2006;  its task will be to strengthen measures 
being drawn up by the Institute to combat piracy and unfair competition. 
G. Competition policy 
80. The central objective of Mexico's competition policy is to protect the competition process and 
free market participation of the type which foster s market efficiency, thereby contributing to the 
welfare of society.  During the first 13 years of  the life of the Federal Law on Economic Competition 
(LFCE) significant progress was made in competiti on matters.  However, problems with loopholes in 
the Law persisted and stood in the way of effective implementation. 
81. The unanimous approval by the Congress of the Union in 2006 of reforms to the LFCE 
confirmed the importance of economic competition in Mexico as State policy. WT/TPR/G/195 Trade Policy Review 
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82. Broadly speaking, the reform of the LFCE strengthens the powers of the Comisión Federal de 
Competencia  (Federal Competition Commission – CFC), to prevent and investigate anti-competitive 
practices, it brings its procedures into line with the guidance given by the courts (over the twelve years when the previous LFCE was in for ce) and increases the level of fines which may be 
imposed.  Additionally, the reforms broaden and en hance the CFC's power to act as an advocate in 
various matters. 
83. Bilateral cooperation in compe tition matters is carried on under four cooperation agreements 
and eight chapters on competition which are includ ed in the FTAs signed by the Government of 
Mexico.  These mechanisms enhance cooperati on between the Commission and the foreign 
competition authorities in the exchange of inform ation and technical assistance, the aim being to 
strengthen the application of competition laws in the jurisdictions concerned. 
84. The FTAs with the United States and Canada (NAF TA);  Colombia;  Israel;  the European 
Union;  and Uruguay, and the Economic Associ ation Agreement with Japan contain specific 
provisions on competition policy.  Moreover, Mexico  has signed bilateral agreements on competition 
with the United States, Canada, Chile and Korea;  a Declaration of Intent with the Russian Federation 
on Anti-Monopoly Policy and Support for Busin ess;  and a Memorandum of Understanding on 
Technical Assistance with El Salvador. 
85. Despite the recent reforms of the law, Mexico  still lags behind in the efficiency of its 
implementation of competition law;  this is due in pa rt firstly to the fact that it does not have a pro-
competition legal and regulatory framework but also secondly to the fact that the measures available 
to it to implement the law lack effectiveness.  This  in turn is because the amounts of fines imposed do 
not have enough of a deterrent effect on businesses whic h can earn considerable profits if they break 
competition law. 
86. The 2006 reforms of the Competition Law left a few very important matters unresolved.  It is 
essential that discussion on some of those matters is  resumed to provide a sound competition policy, 
namely:  (i) the LFCE should incorporate aspects  such as the concept of substantial power, 
precautionary measures in procedure and an increase in  the amount of fines;  and (ii) Article 253 of 
the Criminal Code could be implemented so that absolute monopoly practices can be subject to criminal penalties in line with intern ational best practice on the matter. 
87. As part of a broader competitiveness stra tegy, the CFC promotes public policies and 
adjustments to the regulatory framework which fost er the development of competition to the benefit 
of the competitiveness of the national economy. 
H. Regulatory improvement 
88. Regulatory improvement has been an integral part  of the modernization and structural reform 
of the Mexican economy since 1989 and has reinforc ed its process of economic opening.  Regulatory 
improvement implies making changes to improve the quality of the legal system as a whole, and legal 
instruments in particular, in order to protect the count ry's social interests at th e lowest possible cost to 
citizens and businesses, thereby improving the efficiency of the economy.  Accordingly, the role of the Comisión Federal de Mejora Regulatoria  (Federal Regulatory Improvement Commission – 
COFEMER) which has been active in Mexico since 2000 is in part to carry out reviews of preliminary Mexico WT/TPR/G/195 
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 draft regulations submitted to it by  decentralized Federal Government6 agencies and bodies and to 
make the relevant recomme ndations to improve them. 
89. COFEMER's work has been acknowledged in several forums.  The World Bank study Doing 
Business 2007:  How to Reform  (presented in 2006), recognizes that Mexico moved up 19 places in 
terms of the ease of doing business compar ed to the previous year's study. 
90. A significant part of COFEMER's work during th e period under review has been to maintain 
the availability of the regulatory improvement  programs for the peri ods 2001-2003, 2003-2005 and 
2005-2006, which can be consulted on  its Internet portal;  the portal also provides easy, direct access 
to information on regulations proposed by decentr alized agencies and bodies and on the formalities 
and services offered by the Federal Gove rnment through it (www.cofemer.gob.mx). 
91. COFEMER's most notable achievements include: 
i. The introduction of 133 Sistemas de Apertura Rápida de Empresas (Rapid Business 
Start-Up Systems - SAREs) in 133 municipalities in the country.  They account for 191 new businesses, 348,353 jobs and Mex$19, 494,900,000 million of investment.  
The SARE is a regulatory improvement tool which generates significant benefits in 
terms of investment and job creation by enabling a business to start up in less than 
72 hours; 
ii. Rolling back regulatory inflation by reducing the volume of new proposals for 
regulations which entail compliance co sts for citizens and businesses.  The 
Regulatory Moratorium Agreement issued by the President of the Republic on 
12 May 2004 reduced the number of proposals by 23.5 per cent; 
The Regulatory Quality Agreement issu ed by President Felipe Calderón on 
2 February 2007 led to a 15.6 per cent drop in acceptance of drafts with compliance costs in the period February-October 2007 in comparison with the same period in 2003 (the last year before the Regul atory Moratorium Agreement applied); 
iii. The establishment and maintenance of th e Federal Registry of Formalities and 
Services (RFTS).  The requirements, costs, o fficials, formats, legal bases, time-limits 
for receipt and criteria for completing federal formalities and services can be consulted through the RFTS.  It provides citizens and businesses with transparency 
and legal certainty; 
iv. Greater planning and transparency in government measures taken by the 
decentralized Federal Government agencies and bodies by making them subject to a 
legal requirement to submit biennial programs for regulatory improvement to 
COFEMER;  those programs must set out the measures which the bodies concerned 
intend to carry out to eliminate or stream line formalities, reform legal provisions 
currently in force and even introduce new proposals for regulation.  It should be noted 
that in consultation with the private se ctor, the regulatory improvement programs 
2005-2006 incorporated 36 specific measures on competitiveness and regulatory improvement in various areas such as:  exte rnal trade and Customs, standardization, 
health, finance, transport, telecommunica tions, energy, work and social insurance, 
                                                     
 
6 Except for the acts, procedures or resolutions of the Ministry of National Defence and Ministry of 
Naval Affairs. WT/TPR/G/195 Trade Policy Review 
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migration, social security and regulatory improvement in States and municipalities so 
as to provide "Systemic View" solutions;  and  
v. The decision of August 2006 to make public -private dialogue part of the institutional 
fabric.  On that basis an Executive Co mmittee and Technical Working Groups were 
established under the Federal Regulatory Impr ovement Council, and their task is to 
propose and monitor measures in the field of competitiveness regardless of changes 
in government. 
I. Government procurement 
92. Nine of the FTAs signed by Mexico have ch apters on government procurement;  these 
agreements cover 39 countries.  Of those countries,  35 are party to the WTO Plurilateral Agreement 
on Government Procurement and tw o are observers.  Additionally, in March 2007, Mexico and Chile 
concluded a chapter on public proc urement under their FTA and are aw aiting approval of the same by 
their respective legislative bodies.  Moreover, Mexico  is also in the process of negotiating a chapter 
on this subject with Uruguay and is close to embarking upon negotiations on the same subject with Korea. 
93. Significant progress has been made over the last  few years in developing and improving the 
electronic government procurement system COMPRANET, with a view to making it easier for firms to participate in government tendering pro cesses and to provide a transparent mechanism for 
informing the public about government procurement processes.  This system provides public information concerning federal government demand for goods, services, leasing and public works. 
V. BILATERAL AND REGIONAL AGREEMENTS 
94. Bilateral and regional agreements have been a mainstay of Mexican trade policy in recent 
years.  They complement and promote greater multila teral liberalization and are consistent with the 
WTO provisions. 
95. Mexico is one of the WTO Members with the greatest number of FTAs:  it has a network of 
12 which afford it preferential access to over a billi on consumers in 44 countries, representing about 
75 per cent of world GDP.  Thanks to these agr eements, Mexico now ranks as the tenth largest 
exporter in the world in terms of value of exports and the largest in Latin America and the Caribbean, 
and is one of the main developing country recipients of  FDI, with all attendant be nefits that this brings 
for economic growth, job creation and wages. 
96. In 2002, Mexico had FTAs with the following Members:  United States and Canada (1994);  
Colombia and Venezuela (1995);  Bolivia (1995);  Costa Rica (1995);  Nicaragua (1998);  Chile 
(1999), Israel (2000);  the European Union (2000);  the "Northern Triangle" with Guatemala, Honduras and El Salvador (2001);  the European  Free Trade Association (EFTA) with Iceland, 
Norway, Liechtenstein and Switzerland (2001). 
97. Between 2002 and 2006 two new FT As entered into force:  with Uruguay (2004), and 
Japan (2005).  Venezuela gave notice of terminati on of its FTA with Mexico on 22 May 2006 and that 
notice took effect 180 days following its communication (on 19 November 2006).  Mexico is currently in negotiations to adjust and extend an FTA with Colombia and to  develop FTAs with Korea 
and Peru. 
98. The trade agreements which have been nego tiated have opened up markets for Mexican 
exports and have increased Mexico's attractiveness for investment, by affording greater certainty for Mexico WT/TPR/G/195 
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 economic agents, including exporters, investors and consumers.  Thes e agreements and the 
multilateral trading system are complementary mech anisms for moving towards liberalization of the 
economy and maintaining consistency between the instruments. 
99. Mexico is also involved in other regiona l initiatives such as the Asia-Pacific Economic 
Cooperation (APEC) mechanism, the goal of which is  to achieve a free-trade and investment regime 
by 2020 at the latest.  Mexico is the seat of the Secretariat of the Free Trade Area of the Americas (FTAA).  Furthermore, Mexico has been a memb er of the Organization for Economic Cooperation 
and Development (OECD) since 1994, a nd it is in that capacity that it is taking part in discussions to 
draw up an international trade agenda. 
CONCLUSIONS 
100. Since its previous trade policy review, Mexico  has continued to favour trade liberalization 
and the establishment of standards which provide cer tainty and predictability for its external trade 
flows, principally through efforts to conclude the Doha Round successfully.  These efforts have been 
supplemented by approaches to other countries with  a view to seeking greater integration either 
through the negotiation or extension of FTAs and i nvestment promotion and protection agreements, as 
well as unilateral initiatives to re duce tariff and non-tariff barriers.  This has had positive effects on 
the economy and therefore on growth in trade and improvements in wages and employment. 
101. Regardless of its extensive network of preferen tial agreements, as one of the world's principal 
exporters and importers of goods and services Me xico needs a multilateral system which facilitates 
substantial growth in world trade.  There lies the importance of the WTO negotiations on the Doha 
Development Agenda.  To that end Mexico has re affirmed its commitment to a sound, predictable, 
and valid multilateral trading system and the successful  conclusion of the D oha Agenda negotiations. 
102. Despite progress having been made in some of the issues which our country views as 
priorities, Mexico is facing significant challenges ahead which will be addressed by moving forward 
with a series of structural reforms and implemen ting precise measures as described above, allowing us 
to increase the competitiveness of our economy and thereby create better conditions to give more of 
Mexico to the world and more of the world to Mexico. 
__________