Mexico South Korea Free Trade Agreement

One of the objectives of the Mexican-Japan EPO was to restore the competitiveness of Japanese companies in the Mexican market. Mexico already had free trade with the United States and Canada under NAFTA and the European Union. Both agreements had penalized Japanese companies because of different legal rates and the exclusion of Japanese companies from public works projects in Mexico. Mexico has reached an agreement to increase Japanese investment in Mexico, thereby creating jobs, increasing Mexican exports to Japan, increasing technology transfers from Japan and strengthening Mexico`s industrial competitiveness25. Economic conditions in Mexico are important to the United States because of Mexico`s proximity to the United States, close trade and investment interactions, and other social and political implications. Another topic of interest to U.S. politicians is the impact of Mexican free trade agreements on U.S. exports to Mexico. The liberalization of Mexico`s trade and investment barriers relative to other countries has led to increased competition for U.S. goods and services in the Mexican market. As a result, the U.S.

share of goods imported by Mexico has steadily declined over the years. Organization of American States, Foreign Trade Information System, Information on Mexico, accessed April 5, 2017, Mexico`s willingness to enter into free trade agreements with other countries is a way to bring benefits to the economy, but also to reduce its economic dependence on the United States. The United States is by far Mexico`s largest trading partner. About 80% of Mexico`s exports are exported to the United States and 47% of Mexican imports come from the United States5.In an effort to diversify trade with other countries and increase trade, Mexico has a total of 11 trade agreements with 46 countries (see Figure 1). These include agreements with many countries in the Western Hemisphere, including the United States and Canada, Chile, Colombia, Peru and Uruguay.6 Mexico has also ratified a free trade agreement with Central America (Costa Rica, El Salvador, Honduras, Guatemala and Nicaragua), signed on November 22, 2011. The free trade agreement between the six parties came into force on September 1, 2013. In 2015, Korea imported only 158 million tonnes of Mexican beef, 29% more than the previous year.

Beef imports from Mexico have fallen dramatically since 2011, when the volume amounted to 5,929 million tonnes.