The Free Trade Agreement (FTA) between Mexico and Japan is an important development in the global market. While both countries have been trading partners for decades, this agreement formalizes and expands the scope of their trade relationship. In this article, we will discuss the details of the Mexico-Japan FTA and its potential impacts on both countries.
Mexico and Japan have a long and fruitful trade history. Japan is Mexico`s fourth-largest trading partner, and Mexico is Japan`s second-largest trading partner in Latin America. In 2018, the total trade between the two countries was worth $20.9 billion. Mexico exports a variety of products to Japan, such as automobiles, auto parts, and fresh produce. Japan is a major exporter of electronics, machinery, and chemicals to Mexico.
The FTA between Mexico and Japan, which entered into force on April 1, 2020, covers a wide range of goods and services. The agreement eliminates tariffs on 97% of Japanese goods entering Mexico and 72% of Mexican goods entering Japan. This includes agricultural products such as avocados, pork, and tequila from Mexico, and automobiles, auto parts, and electronics from Japan.
In addition, the FTA includes provisions for the protection of intellectual property, labor rights, and the environment. It also establishes a joint committee to oversee the implementation of the agreement and to resolve any disputes that may arise.
The Mexico-Japan FTA is expected to have several benefits for both countries. For Mexico, the agreement provides access to one of the largest and most technologically advanced markets in the world. This will help Mexican companies to increase their exports, create more jobs, and promote economic growth. For Japanese companies, the FTA provides access to a large and growing market in Mexico, which is strategically located between North and South America.
The FTA is also expected to strengthen the economic relationship between Mexico and Japan. As trade between the two countries increases, there will be more opportunities for collaboration and investment. This will help to deepen the cultural and social ties between the two countries and promote mutual understanding.
In conclusion, the Mexico-Japan Free Trade Agreement is a significant development that will benefit both countries. It will provide greater access to each other`s markets, increase trade and investment, and promote economic growth. As the world becomes more interconnected, agreements like this one will become increasingly important in promoting prosperity and stability.