Benefits of a Unified FTA Mexico - Central America

Central American countries will be able to access the Regional Integration Committee of Supplies, to supply raw materials for the development of Mexican goods, especially textiles.

Tuesday, January 17, 2012

After three years of negotiations, the Unified Free Trade Agreement between Mexico and Central America was signed on November 22nd 2011.

The treaty unifies standards in areas such as trade in goods, investment, services, intellectual property and resolution of disputes, for El Salvador, Guatemala, Costa Rica, Nicaragua and Honduras in their trade relations with Mexico.

In an article in, the Mexican ambassador to Nicaragua, Raul Lopez Lira, writes about the opportunities that the unified TLC presents for Central American companies.

"A vigorous commercial area has been created that represents a potential market of 150 million people and the establishment of conditions for creating more and better export opportunities, particularly for small and medium enterprises.

It also incorporates the tariff elimination commitments of the original agreements, so that by the end of 2012 most goods will be exempt; a trade facilitation chapter has been negotiated to eliminate non-tariff barriers; most rules of origin have been validated, enabling the possibility of incorporating raw materials from third party countries to produce goods which can be considered from the producing country.

For the first time, Central American countries can access the Regional Integration Committee of Supplies, to supply raw materials in the production of Mexican goods, mainly textiles. In addition, Central America gained tariff benefits for textiles, paper, windows, automobiles, cigarettes, freezers, electric conductors, tuna, corn and edible oils. "

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Costa Rica will export sugar duty free when supply in the Mexican market is insufficient.

A press release from the Costa Rican Ministry of Foreign Trade announced that, “On October 20, 2011, in the city of San Salvador, technical negotiations for the Free Trade Agreement between Mexico and Central America were finalized.”

Mexico Ratifies FTA with Central America

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The Mexican Senate has unanimously approved a Free Trade Agreement (FTA) with Central America.

The treaty provides a common legal framework for the conduct of trade in goods and services between the parties, as well as the establishment of investment in the region.

"The trade agreement signed on 22 November in El Salvador, states that in 2012 tariff elimination commitments must be adhered to and most of Mexico's trade with these countries will be free of taxes", reported EFE.

Second Round of Unified FTA with Mexico

August 2010

Yesterday the second round of negotiations began to unify the various agreements Central American countries have signed with Mexico.

The objective is to unify the different agreements signed by Nicaragua, Costa Rica and the "Northern Triangle" (Guatemala, Honduras and El Salvador) into one single Free Trade Agreement (FTA).

Increased Trade Between Central America and Mexico

August 2013

In late 2012, one year after the signing of the new trade agreement, trade between Mexico and the region totaled $9.3 billion.

This information was released by the Mexican ambassador in San Salvador, Raul Lopez Lira. "On September 1 the Central American countries will celebrate the first anniversary of the unified treaty between Mexico and the region with a significant increase in trade ...", reported article.

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