Free Trade Agreement Between Mexico And Japan- September 21, 2021
Free trade agreements have led the country to become the 12th largest export economy in the world, with $472.3 billion in exports in 2019. Beyond the country`s production advantages, access to free trade offers mutual benefits to both partner countries and businesses. After the failure of the World Trade Organization (WTO) Ministerial Conference in Cancún, the lack of progress on the Doha agenda and the relative explosion of bilateral free trade agreements negotiated around the world, Japan reviewed its trade strategies and policies and, for the first time, announced its intention to implement bilateral and multilateral trade agreements. Therefore, and with the stated aim of pursuing bilateral free trade agreements to strengthen and promote the multilateral agenda, Japan has begun to explore the possibilities of free trade agreements with Singapore, Mexico, Malaysia, Korea, Thailand and the Association of Southeast Asian Nations (ASEAN). A new version of NAFTA, called USMCA (the agreement between the United States, Mexico and Canada), is expected to enter into force on July 1, 2020. After nearly three years of negotiations, each nation is striving to meet country-specific requirements in order to meet the implementation date. This “new NAFTA” makes several notable updates to the previous agreement, including: the agreement between Japan and the United Mexican States to strengthen the economic partnership entered into force on 1 April 2005. A free trade agreement (FTA) is an agreement involving two or more countries to reduce import and export trade barriers between the parties. Agreements may include the relaxation or elimination of customs duties on goods and services transported across regional borders and may consist of environmental and social provisions based on such products. Free trade agreements can be unilateral, bilateral or multilateral, and most countries have more than one.
The Japan-Mexico Free Trade Agreement was Japan`s first comprehensive agreement with a single country. Signed in 2004 and imposed in 2005, Japan became Ten years later Mexico`s 5th largest export destination, with exports of $4.4 billion. .