Mexico a Promising Trade Partner, says Review Team

 Mexico has been praised by an independent panel of analysts for its "multi-pronged approach towards trade and investment liberalization though multilateral, regional, bilateral and unilateral processes."

In fact, they say, external trade has had an increasingly large impact on Mexico's economic growth. Relying heavily on the manufacturing sector, exports and foreign direct investment (FDI) are among the main sources of new jobs and have accounted for much of the growth in formal employment in 2006, as well as wage increases.

Between 2002 and 2006, total trade rose from 50.9% to 60.3% of GDP and total exports rose from US$161 billion to US$250 billion - an approximate average growth rate of 11.6%. The deficit in the balance of payments current account has narrowed from US$7.6 billion to US$6.1 billion and represents only 0.7% of GDP.

Mexico's efforts towards the liberalization of its trade and investment regime are complemented by efforts to improve competitiveness and governance in different sectors; and its pursuit of bilateral FTAs. In fact, Mexico has one of the greatest numbers of FTAs among APEC member economies and an approximate 85 percent of its trade is conducted with preferential partners.

Mexico's trade with non-FTA partners has also grown and an increasingly competitive global environment underlines the need for Mexico to proceed with non-preferential liberalization in trade and investment.

These observations come after a review of Mexico's Individual Action Plan (IAP) before APEC Senior Officials. Each of APEC's 21 member economies is required to undergo periodic analysis of its progress in realising the Bogor goals (free and open trade and investment by 2010 for developed economies and 2020 for developing economies).

Mexico, says the review team, is well on its way to achieving APEC goals of free and fair trade.

Analysts' full report will be available online after the Senior Officials' Meeting on 23 August 2008:
http://www.apec.org/redirect/2008_iap_mexico.html