54. European Union and Mexico In Brussels on December 8 th , 1997, the European Union and Mexico signed an agreement made up of three pillars: an Economic Partnership, Political Cooperation and Cooperation Agreement which laid the basis for the negotiation of a free trade agreement between Mexico and the European Union. It is known as the "Global Agreement“ and governs relations between these two entities. This Agreement is based on democratic principles and on the respect for human rights With respect to trade, the Agreement sets out the objective of establishing a free trade area in goods and services, the mutual opening of the procurement markets, the liberalization of capital movements and payments, as well as the adoption of disciplines in the fields of competition and intellectual property rights.
55. Organization for Economic Cooperation and Development Mexico is the only Latin American country member of the Organization for Economic Cooperation and Development (OECD). It was originally signed by 20 countries in 1960. Mexico joined on the18th of May, 1994 Mexico city serves as an OCED center, along with Berlin,Tokyo and Washington, and Paris. Salon de l'Horloge, Quai d'Orsay, Paris; December 14,1960 The OECD is made up of some of the wealthiest countries in the world The 2007 budget was 340 million Euros
56. Global Partners OECD member countries Countries invited to open talks on potential membership Countries to which OECD is offering enhanced engagement
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58. Economic Survey of Mexico Every 1 ½ to 2 years an economic survey is published for each OECD country. The 2007 survey for Mexico was released October 4 th . The survey found the following: Mexico’s per capita has increased and broad macroeconomic stability has been achieved. Although its fiscal GDP position is good, Mexico has to reduce the heavy reliance of the budget on oil revenue The new government is planning a large scale public finance reforms. Currently Mexico relies heavily on world oil prices, which are not stable. There is also a large demand on the budget for things such as basic infrastructure, education, health and poverty alleviation. A tax reform is needed to increase revenues. Mexico has made significant progress in reducing barriers to trade and foreign direct investment (FDI), and this has boosted GDP per capita growth. Barriers to FDI remain high, particularly in some services and infrastructure sectors, such as telecommunications and domestic land transport. Transport infrastructure efficiency has a direct effect on domestic and international trade flows and overall growth by lowering delivery times and transport costs, while efficiency in telecommunications and energy influences the cost competitiveness of Mexican firms.
59. On June 1, 2006, Angel Gurría of Mexico took the reins as secretary general of the Organization for Economic Cooperation and Development (OECD). OECD has Mexican President
60. Facts The EU is Mexico’s second trading partner after the USA. According to EUROSTAT, bilateral trade between the EU and Mexico in 2005 totaled € 25.8 billion. This represents a 20% growth in comparison to 2004 with an even higher increase for Mexican exports. The Free Trade Agreement (FTA) covers a broad spectrum of economic aspects. It includes: a full liberalization of industrial products by 2003, for the EC, and by 2007 - with a maximum 5% tariff applied by 2003 - for Mexico; substantial liberalization for agricultural and fisheries products; and, as regards rules of origin, a satisfactory balance between EU policy of harmonization and market access considerations. The FTA will also provide EU operators with access to the Mexican procurement and services markets substantially equivalent to NAFTA. In the 6 years following the entry into force of the FTA, bilateral trade between the EU and Mexico grew by nearly 90 %. This in accordance with both parties' imports data. EU foreign direct investment flows have increased by 120%. The EU is now the second major investor in Mexico behind United States.
61. Free Trade Agreement Mexico and the European Union The EU-Mexico FTA also covers agriculture, services, public procurement, investment, competition and intellectual property rules, and dispute settlement. On both services and procurement, the terms agreed upon by the EU and Mexico will grant the EU treatment similar to NAFTA partners. On July 1, 2000, the EU-Mexico FTA eliminated duties on an additional 22% of Mexican industrial goods, bringing duty-free coverage to 82% of all industrial products. EU tariffs on the remaining 18% of Mexico’s industrial products was eliminated by January 1, 2003. While EU tariffs are generally low, there are areas of tariff peaks where the EU-Mexico FTA could affect U.S. sales to Europe by making Mexican products more competitive.
63. NAFTA North American Free Trade Agreement Since the North American Free Trade Agreement (NAFTA) entered into force in 1994: US – Mexico trade grew at an annual average rate of 16% US – Mexico trade tripled pre-NAFTA levels. On average, the US and Mexico trade more than US$ 720 million every day.
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65. Mexico & Foreign Investment Mexico benefits from extensive free trade agreements with both the United Sates and the European Union. Mexico provides security and legal protection for foreign investors through Bilateral Investment Treaties (BIT’s) negotiated with 20 countries . Mexico is the second largest foreign direct investment (FDI) recipient among developing countries. Foreign direct investment in Mexico between 1995 and 2002 surpassed 119 billion dollars. Combined, Mexico offers foreign investors a low risk and high return. *Guaranteed market access *Legal certainty and clear rules of operation *Macroeconomic stability *Political stability and democratic governance *Growing internal demand *Access to competitively priced and international quality inputs *Improvement of services and reduction of costs LOW RISK HIGH RETURN
66. Mexico & Exporting Mexico is the seventh largest exporter in the world (Total exports in billion dollars, 2002)
70. Border Issues Fox says U.S. will need Mexican labor by 2010 Mexican President Vicente Fox predicted that border tensions with the U.S. will ease because the retirements of baby boomers will create a demand for workers
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