Transcript MEXICO EXPORTA

Mexico – European Union
Free Trade Agreement
Industrial Products
July 2003
1
The EU is Mexico´s second largest trading
partner
Mexico - EU trade
(US million dollars)
20,000
6,487 5,824
EU’s imports
from Mexico
6,393
16,000
4,379
4,154
12,000
8,000
2,684
7,799
4,000
4,827
3,068
4,131
3,902
9,917
9,058
6,732
12,743
11,699
16,16516,441
14,745
7,741
Mexico’s imports
from the EU
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Source: Ministry of the Economy, with data from BANXICO and EUROSTAT (using data from the importing
party)
2
Market Access
Industrial Products
The Mexico – EU FTA acknowledges differences in the levels
of development :
 Mexico received asymmetric treatment: the EU
completely eliminated its import duties in 2003, while
Mexico will do it in 2007;
 Consolidation of the preferential access granted in the
Generalized System of Preferences (GSP) to Mexican
exports. The EU took the GSP duties as the base to
eliminate import duties.
3
Market Access
Industrial Mexican exports to the EU,
1993 - 2002 (billion US$)
7
4.9
4.7
4.4
6
4.0
5
3.7
3.4
3.3
3.2
4
Non-oil
Exports
2.2
3
1.6
2
1
1.0
0.9
0.7
0.7
0.9
0.7
0.8
1.5
1.4
1.4
Oil
Exports
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Source: ME, with data from Eurostat
4
Market Access
Industrial Products
Vehicles and auto parts*:
Mexican exports to the EU 1993 – 2002 (million US$)
1,192
1200
1,050
986
1000
785
800
692
575
600
400
482
482
444
1996
1997
349
200
0
1993
1994
1995
1998
* Includes products from chapters 73, 84, 85, 86, 87, 88, 89, 95 and 98 of the HS
Source: ME, with data from Eurostat
1999
2000
** Estimated
2001
2002**
5
Market Access
Industrial Products
Chemicals and plastics*:
Mexican exports to the EU 1993 – 2002 (million US$)
800
707
700
600
540
500
560
469
461
1996
1997
606
666
613
400
300
262
293
1993
1994
200
100
0
1995
1998
* Includes products from chapters 15, 27-40, 55, 87, and 94-96 of the HS
Source: ME, with data from Eurostat
1999
2000
2001 2002**
** Estimated
6
Market Access
Industrial Products
Textiles and garments*:
Mexican exports to the EU 1993 – 2002 (million US$)
155.1
160
134.9
140
125.6
120
99.1
100
80
68
78
78.2
79.7
1999
2000
85.6
91.2
60
40
20
0
1993
1994
1995
* Includes products from chapters 50-63 of the HS
Source: ME, with data from Eurostat
1996
1997
1998
2001
2002*
** Estimated
7
Market Access
Industrial Products
Electric and electronic equipment*:
Mexican exports to the EU 1993 – 2002 (million US$)
1665 1706
1800
1600
1332
1400
1200
1059
882
1000
800
604
600
400
680
496
206
315
1993
1994
200
0
1995
1996
1997
1998
* Includes products form chapters 71, 73, 74, 76, 84, 85, 94 and 98 of the HS
Source: ME, with data from Eurostat
1999
2000
2001 2002**
** Estimated
8
Market Access
Industrial Products
Footwear and leather*:
Mexican exports to the EU 1993 – 2002 (million US$)
60
53
52
48
50
46
43
37
40
36
31
31
30
20
10
10
0
1993
1994
1995
1996
* Includes products from chapters 41-43 and 64 of the HS
Source: ME, with data from Eurostat
1997
1998
1999
2000
2001
2002*
** Estimated
9
The Mexican industry has the potential to improve
its position as a EU supplier
Mexican exports
( million US$)
Total:
Manufactures
Others
To the EU 2002*
Exp.
Part. # Sup.
5,824.0 0.6% 34
4,078.3 0.5% 31
1,745.7 0.9% 27
To the US 2002
Exp.
Part. # Supp.
134,732.2 11.5%
2
116,183.0 11.7%
4
18,549.2 10.8%
2
Main sectors:
Textile and garment
Electric and electronics
Transport equipment and auto parts
Steel products
Food, beverages and tobacco
Plastics and rubber
91.2
1,332.0
785.2
61.6
186.2
613.0
0.1%
0.9%
0.8%
0.2%
0.5%
0.7%
56
17
19
42
41
22
8,747.1
42,258.3
30,423.3
23,121.0
3,000.0
4,592.7
12.1%
20.2%
14.7%
10.7%
8.2%
5.6%
2
1
3
2
2
5
* Estimated
Source: ME with import data from Eurostat and USDOC
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Market Access
Industrial Products
Mexican products duty Phase-out:
Customs duties on imports originating in Mexico
 Category “A”.- On July 1, 2000, the EU eliminated all
customs duties on imports of products originating in
Mexico under this category, which represented 82% of
all Mexican industrial exports to the EU
 Category “B”.- Duties shall be eliminated in four
stages, the first one took place on July 1, 2000, and
the other three on January of each year. Customs
duties under this category were completely eliminated
on January 1, 2003, which represented the remaining
18% of Mexican industrial exports to the EU.
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Market Access
Industrial products duty phase-out
 As of January 1 2003, all Mexican industrial products enter
the EU market duty free.
Estimated percentage of
duty phase-out
47.6
5.1
100
5.6
41.7
% of duties
82
0
18
0
0
0
July 1,
2000
2003
2005
2007
Mexico
0
EU
12
Market Access
Industrial Products
EU products duty Phase-out:
Duty elimination for products under category “B+”
Mexican
July
Base Rate 2000
January January January January January
2001
2002
2003
2004
2005
20
18
12
8
5
2.5
0
15
13
10
7
5
2.5
0
10
8
6
4
4
2
0
7
5
4
3
2
1
0
5
4
3
2
2
1
0
13
Market Access
Duty elimination for some industrial products
in which Mexico is highly competitive
Tariff phase out for products facing tariff peaks in the EU market
13.2
12.2
9.9
9.2
6.6
10
6.1
Percentage
9.2
3.1
5
6.9
0.0
2.3
0.0
2000
2001
2002
0.0
0.0
2.5
4.6
Base
rate*
3.3
7.5
Cotton trousers
Velvet and toweling
Vehicles
Denim
2003
*/ Base rates were calculated with GSP duty for the EU.
Source: ME, with data from BANXICO and EUROSTAT
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Market Access
Industrial Products
EU products duty Phase-out:
Duty elimination for products under category “C”
Mexican
Base
Rate
July
2000
January
2001
January
2002
January
2003
January
2004
January
2005
January
2006
January
2007
20
18
12
8
5
5
4
3
0
15
13
10
7
5
5
4
3
0
10
8
6
5
4
4
3
1
0
7
5
4
3
3
2
2
1
0
5
4
3
2
2
2
1
1
0
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Market Access
Industrial Products
On July 1, 2000, Mexico eliminated duties
for European products, such as:
Machinery
Agricultural equipment / fertilizers
Electronic and telecommunications
equipment
Soaps and detergents
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Market Access
Industrial Products
Between 2003 and 2005 Mexico will eliminate import duties
to the following European products:
Medicines
Yarn and thread
Buses
Trucks
17
Market Access
Industrial Products
In 2007 Mexico will eliminate import duties
to European products such as:
Footwear
Garments
Steel
Leather manufactures
Wood and paper
Perfumes
Electrical conductors
Furniture
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Market Access
Industrial Products
As in other FTAs negotiated by Mexico, the
Mexico – EU FTA establishes trade principles,
such as:
National treatment
Prohibition to quantitative restrictions (e.g.
import and export permits)
General exemptions
The Agreement includes disciplines as:
rules of origin and custom procedures
technical standards
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Market Access
Industrial Products
EXEMPTIONS
As in the North American Free Trade
Agreement (NAFTA), Mexico can maintain
import and export permits for products such
as:
Fuels
Used clothes
Vehicles (according to Mexico’s Automotive
Decree, which will be in place until December
31, 2003).
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Rules of Origin
 Rules of origin determine the goods that are entitled to
receive preferential duty treatment.
 Goods with the following characteristics receive the
benefits:
 wholly obtained in their territory (e.g. minerals,
vegetables, animals, fish, etc.);
 elaborated from originating inputs;
 elaborated from non - originating inputs from both parts,
provided that such materials have undergone substantial
transformation.
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Rules of Origin
The agreed rules of origin:
 Guarantee that the benefits of the agreement remain
within the region.
 Avoid the transshipment of non-originating products.
 Benefit from the preferential treatment (Decision
2/2000) upon submission of either:
 (a) a movement certificate EUR.1; or
 (b) an invoice declaration, given by the exporter
which describes the products concerned in
sufficient detail to enable them to be identified.
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Rules of Origin
 Customs procedures guarantee compliance with origin
requirements.
 Verifications of proofs of origin shall be carried out at
random or whenever the customs authorities of the
importing country have reasonable doubts as to the
authenticity of such documents.
 The customs authorities of the importing country shall
return the movement certificate EUR.1 and any other
document provided by the exporter to the customs
authorities or the competent governmental authority of the
exporting country giving, where appropriate, the reasons for
the inquiry.
 The verification shall be carried out by the customs
authorities or the competent governmental authority of the
exporting country.
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Standards, Technical Regulations and
Conformity Assessment Procedures
Standards and technical regulations help protect human
health, as well as those of animals and vegetables, consumers
and the environment. They guarantee the veracity of the
information provided by the producers on ingredients, content,
weight and volume; and establish the requirements that must
be complied by the producers of machinery and equipment.
Both parties keep the right to adopt and enforce standards,
as long as they do not become unnecessary obstacles to
trade.
A Special Committee on Technical Standards was
established to promote cooperation in:
exchange of information about standardization systems;
solving market access problems related to standards.
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Dispute Settlement
 A dispute settlement and consultation
mechanism was established with clear and
precise procedures. This was the first time
the EU incorporated this mechanism in an
FTA.
 In a dispute, the Parties can use the Mexico
– EU FTA or the WTO dispute settlement
mechanisms.
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Concluding Remarks
The Mexico – EU FTA was the first Transatlantic
agreement of its kind.
With this Agreement, both Parties expect to be able
to increase their share in each other’s markets given
the kind of preferential access that was established.
The Agreement is also acting as a driving force to
increase investment flows in productive activities both
in Mexico and the EU.
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To obtain further information visit:
www.economia.gob.mx
www.economia-bruselas.gob.mx
[email protected]
Mexico’s Mission to the EU
Mexican Ministry of the Economy
94, Av. Franklin Roosevelt
1050 Brussels, Belgium
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