 RESTRICTED  
  
WT/TPR/S/429  
10 August 2022  
(22-6034) Page: 1/183 
Trade Policy Review Body   
 
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
MEXICO 
This report, prepared for the seventh Trade Policy Review of Mexico, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Mexico on its trade policies and practices.  
 
Any technical questions arising from this report  may be addressed to Mr Angelo Silvy 
(tel.: 022 739 5249), Ms Eugenia Lizano ( tel.: 022 739 6578) and Ms Stephanie Dorange -Patoret 
(tel.: 022 739 5497).  
 
Document WT/TPR/G/429 contains the policy statement submitted by Mexico.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Mexico. This report was drafted 
in Spanish.  WT/TPR/S/429 • Mexico  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  8 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  14 
1.1   Main Features of the Economy  ................................ ................................ ..................... 14 
1.1.1    Sectoral developments in production and employment  ................................ ................. 14 
1.1.2    Measures to address the pandemic  ................................ ................................ ............ 17 
1.2   Recent Economic Developments  ................................ ................................ ................... 20 
1.2.1    Real sector  ................................ ................................ ................................ .............. 20 
1.2.2    Fiscal policy  ................................ ................................ ................................ ............ 22 
1.2.3    Monetary and exchange -rate policy  ................................ ................................ ............ 26 
1.2.4    Balance of payments  ................................ ................................ ................................ 30 
1.3   Developments in Trade and Investment  ................................ ................................ ........ 32 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 32 
1.3.1.1    Merchandise trade  ................................ ................................ ................................ .32 
1.3.1.1.1    Composition of merchandise trade  ................................ ................................ ........ 32 
1.3.1.1.2    Direction of merchandise trade  ................................ ................................ ............ 33 
1.3.1.2    Trade in services  ................................ ................................ ................................ ...35 
1.3.2    Trends and patterns in FDI  ................................ ................................ ....................... 36 
2   TRADE AND INVESTMENT REGIMES ................................ ................................ ...........  38 
2.1   General Framework  ................................ ................................ ................................ ....38 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........ 41 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 43 
2.3.1    WTO ................................ ................................ ................................ ...................... 43 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 44 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 48 
2.4   Investment Regime  ................................ ................................ ................................ ....48 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  53 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 53 
3.1.1    Registration, documentation and customs procedures  ................................ .................. 53 
3.1.2    Customs valuation  ................................ ................................ ................................ ...56 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 57 
3.1.4    Tariffs  ................................ ................................ ................................ .................... 58 
3.1.4.1    Structure and levels  ................................ ................................ .............................. 58 
3.1.4.2    Tariff quotas  ................................ ................................ ................................ ......... 61 
3.1.4.3    Preferential tariffs  ................................ ................................ ................................ .63 
3.1.4.4    Tariff concessions  ................................ ................................ ................................ .65 
3.1.5    Other charges affecting imports  ................................ ................................ ................. 66 
3.1.6    Import prohibitions, restrictions and licensing  ................................ ............................. 68 
3.1.7    Anti-dumping, countervailing and safeguard measures  ................................ ................. 73 
3.1.7.1    Anti-dumping measures  ................................ ................................ ......................... 75 WT/TPR/S/429 • Mexico  
 
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  3.1.7.2    Countervailing measures  ................................ ................................ ........................ 76 
3.1.7.3    Safeguard measures  ................................ ................................ ............................. 77 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 77 
3.2.1    Registration and documentation  ................................ ................................ ................ 77 
3.2.2    Export taxes and duties  ................................ ................................ ............................ 78 
3.2.3    Export prohibitions, restrictions and licens ing ................................ .............................. 78 
3.2.4    Export support  ................................ ................................ ................................ ........ 80 
3.2.5    Export promotion  ................................ ................................ ................................ .....82 
3.2.6    Export finance, insurance and guarantees  ................................ ................................ ...83 
3.3   Other measures affecting production and trade  ................................ .............................. 84 
3.3.1    Incentives  ................................ ................................ ................................ ............... 84 
3.3.2    Technical regulations and standards  ................................ ................................ ........... 89 
3.3.3    Sanitary and phytosanitary measures  ................................ ................................ ......... 94 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 98 
3.3.4.1    Competition policy  ................................ ................................ ................................ 98 
3.3.4.2    Price controls ................................ ................................ ................................ ...... 101 
3.3.5    State trading, State -owned enterprises and privatization  ................................ ............  102 
3.3.6    Government procurement  ................................ ................................ .......................  102 
3.3.6.1    Procurement procedures for State -owned production enterprises  ..............................  106 
3.3.7    Intellectual property rights  ................................ ................................ ......................  107 
3.3.7.1    Industrial property  ................................ ................................ ..............................  109 
3.3.7.2    Patents, utility models, industrial designs and layout designs of integrated circuits  ...... 109 
3.3.7.3    Marks  ................................ ................................ ................................ ................  111 
3.3.7.4    Designations of origin and geogr aphical indications  ................................ .................  111 
3.3.7.5    Copyright and related rights  ................................ ................................ .................  112 
3.3.7.6    Plant varieties  ................................ ................................ ................................ .... 113 
3.3.7.7    Enforcing IPRs  ................................ ................................ ................................ .... 113 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ...................  116  
4.1   Agriculture, Forestry, and Fisheries  ................................ ................................ .............  116 
4.1.1    Measures affecting imports and exports  ................................ ................................ .... 119 
4.1.2    Domestic support ................................ ................................ ................................ ... 120 
4.1.2.1   Production for Well -being Programme  ................................ ................................ .... 123 
4.1.2.2    Guaranteed Prices Programme for Basic Foods  ................................ .......................  124 
4.1.2.3    Agricultural finance and insurance  ................................ ................................ .........  127 
4.2   Energy  ................................ ................................ ................................ ....................  127 
4.2.1    Hydroc arbons  ................................ ................................ ................................ ........  128 
4.2.2    Electricity  ................................ ................................ ................................ .............  133 
4.3   Manufacturing  ................................ ................................ ................................ ..........  135 
4.4   Services  ................................ ................................ ................................ ..................  138 
4.4.1    Financial services  ................................ ................................ ................................ ... 138 WT/TPR/S/429 • Mexico  
 
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  4.4.1.1    Banks  ................................ ................................ ................................ ................  141 
4.4.1.2    Insurance  ................................ ................................ ................................ ..........  147 
4.4.1.3    Securities market  ................................ ................................ ................................  149 
4.4.2    Telecommunications  ................................ ................................ ...............................  152 
4.4.3    Transport  ................................ ................................ ................................ ..............  156 
4.4.3.1    Air transport  ................................ ................................ ................................ ....... 158 
4.4.3.2    Maritime transport  ................................ ................................ ..............................  160 
4.4.4    Tourism  ................................ ................................ ................................ ................  162 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 165  
 
CHARTS  
 
Chart 1.1 Current account and financial account of the balance of payments, 2016 -21 ............... 31 
Chart 1.2 Me rchandise trade by main products, 2016 and 2021  ................................ ............... 34 
Chart 1.3 Merchandise trade by trading partner, 2016 and 2021  ................................ .............. 35 
Chart 2.1 Composition of the APF in 2022  ................................ ................................ ............. 39 
Chart 2.2 Trade agreements signed by Mexico in force in 2022  ................................ ................ 45 
Chart 2.3 Steps to setting up a company  ................................ ................................ .............. 52 
Chart 3.1 Frequency distribution of tariffs, 2016 and 2021  ................................ ...................... 60 
Chart 3.2 Quota distribution by method of allocation, 2017 -21 Q3  ................................ ........... 62 
Chart 3.3 Automatic and non -automatic import licensing by HS section, 2021  ........................... 71 
Chart 3.4 Anti -dumping measures, 2017 -21 ................................ ................................ .......... 76 
Chart 3.5 Automatic and non -automatic export licensing by HS section, 2021  ........................... 80 
Chart 3.6 Exports and imports by type of regime, 2016 -21 ................................ ..................... 81 
Chart.3.7 Inputs covered by the various PROSEC programmes, 2021  ................................ .......85 
Chart 3.8 NOM preparation procedure  ................................ ................................ .................. 91 
Chart 3.9 NOMs by HS section, 2021  ................................ ................................ .................... 92 
Chart 3.10 NMX preparation procedure  ................................ ................................ ................. 93 
Chart 3.11 Public procurement data, by procurement method, 2017 -21 ................................ .. 106 
Chart 3.12 Industrial property data, 2017 -21 ................................ ................................ ...... 108 
Chart 4.1 Hydrocarbons and petroleum products trade balance, 2017 -21 ................................  129 
Chart 4.2 Exports and imports under the IMMEX programme by main  HS chapters,  
2016 and 2021  ................................ ................................ ................................ ................  137 
Chart 4.3 Telecommunications indicators, 2017 -21 ................................ ..............................  154 
Chart 4.4 Share in the telecommunications market, 2017 -21 Q3 ................................ ...........  155 
Chart 4.5 Degree of concentration in the telecommunications market, 2017 -21 .......................  155 
Chart 4.6 Foreign trade port operations, by cargo type, 2017 -21 ................................ ...........  162 
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  TABLES  
 
Table 1.1 Basic economic indicators, 2016 -22 (Q1)  ................................ ................................ 14 
Table 1.2 Structure of GDP by expenditure, 2016 -21 ................................ .............................. 21 
Table 1.3 Balance of the Federal Government, 2016 -21 ................................ .......................... 24 
Table 1.4 Public sec tor budgetary expenditure and revenue, 2016 -21 ................................ .......25 
Table 1.5 Main monetary indicators, 2016 -22 Q1  ................................ ................................ ...27 
Table 1.6 Balance of payments, 2016 -21 ................................ ................................ .............. 31 
Table 1.7 Trade in services, 2016 -21 ................................ ................................ .................... 36 
Table 1.8 Foreign direct investment by activity, 2016 -21 ................................ ........................ 36 
Table 1.9 Foreign direct investment by country of origin, 2016 -21 ................................ ........... 36 
Table 2.1 Trade disputes, 2017 -22 ................................ ................................ ....................... 44 
Table 2.2 Tariff elimination schedule agreed by Mexico under the CPTPP  ................................ ...46 
Table 2.3 Activities reserved to the Mexican State and to Mexicans, 2017 -22 ............................ 49 
Table 2. 4 Economic activities and companies subject to specific regulation, 2017 -22 .................. 49 
Table 2.5 Private property regime for foreigners, 2017-22 ................................ ...................... 51 
Table 3.1 Customs processing fee (DTA) rates, 2022  ................................ .............................. 55 
Table 3.2 Rules of origin under the regional trade agreements that have entered into force  
since 2017  ................................ ................................ ................................ ........................ 57 
Table 3.3 Structure of MFN tariffs, 2016 and 2021  ................................ ................................ .59 
Table 3.4 Tariff lines for which the applied MFN tariff is higher than the bound tariff,  2021 .......... 61 
Table 3.5 Tariff lines subject to unilateral and WTO quotas, 2021  ................................ ............. 61 
Table 3.6 Summary of preferential tariffs, 2021  ................................ ................................ .....63 
Table 3.7 Imports receiving preferential treatment and MFN imports  ................................ ........ 64 
Table 3.8 Tax revenue related to taxes on foreign trade ................................ .......................... 66 
Table 3.9 Other import charges, 2022  ................................ ................................ .................. 68 
Table 3.10 Prohibited imports (exports) (HS Chapter), 2021  ................................ ................... 69 
Table 3.11 Tariff lines subject to automatic and non -automatic import licensing, 2021 ................ 71 
Table 3.12 Ministries issuing import (export) permits, 2021  ................................ .................... 72 
Table 3.13 Definitive countervailing measures in force, 2017 -21 ................................ .............. 77 
Table 3.14 Customs processing fee (DTA) for exports, 2022  ................................ .................... 78 
Table 3.15 Financial products offered by Bancomext  ................................ ............................... 83 
Table 3.16 Credit granted by Bancomext, 2016 -20 ................................ ................................ .83 
Table 3.17 Some tax incentives, 2022  ................................ ................................ .................. 85 
Table 3.18 Main support programmes, 2017 -22 ................................ ................................ .....88 
Table 3.19 Main legal instruments that regulate the sanitary and phytosanitary system,  2021 .....94 
Table 3.20 Institutions responsible for the sanitary system, 2022  ................................ ............ 95 
Table 3.21 Import certificates, 2021  ................................ ................................ ..................... 97 
Table 3.22 COFECE competition data, 2017 -21 ................................ ................................ .... 100 
Table 3.23 Data on government procurement through framework contracts, 2017 -21 ..............  103 
Table 3.24 Government procurement processes  ................................ ................................ ... 105 WT/TPR/S/429 • Mexico  
 
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  Table 4.1 Main indicators for the agricultural sector, 2016 -21 ................................ ................  116 
Table 4.2 Legislation in the agricultural sect or, 2021  ................................ ............................  118 
Table 4.3 Main institutions responsible for the agricultural sector, 2021  ................................ .. 118 
Table 4.4 Agricultural support programmes  ................................ ................................ .........  121 
Table 4.5 Production for Welfare Programme 2019 -21 ................................ ..........................  124 
Table 4.6 Guaranteed Prices Programme for Basic Foods, 2020 -22 ................................ .........  125 
Table 4.7 Trade in hydrocarbons, 2020 and 2021  ................................ ................................ . 129 
Table 4.8 Requirements for operating in the hydrocarbons sector, 2017 -22 .............................  131 
Table 4.9 Hydrocarbons extraction duty, 2021  ................................ ................................ ..... 132 
Table 4.10 Main indicators for the agricultural sector, 2016 -21 ................................ ..............  135 
Table 4.11 Entities supervised by the CNBV, March 2022  ................................ ......................  138 
Table 4.12 Financial system indicators, 2017 -21 ................................ ................................ .. 139 
Table 4.13 Commercial banking activity indicators, 2017 -21................................ ..................  142 
Table.4.14 Commercial banking financial indicators, 2017 -21 ................................ ................  143 
Table 4.15 Credit facilities estab lished in response to the COVID -19 pandemic,  
30 September 2021  ................................ ................................ ................................ .........  146 
Table 4.16 International traffic indicators, 2017 -21 ................................ ..............................  160 
Table 4.17 International tourism indicators, 2017 -21................................ ............................  163 
 
BOXES 
 
Box 1.1 Measures implemented by the Bank of Mexico to address the COVID -19 pandemic  ......... 28 
Box 2.1 Legislative procedure  ................................ ................................ .............................. 40 
Box 2.2 Rules of origin under T -MEC ................................ ................................ .................... 46 
Box 3.1 Amendments to the general import/export procedure for the border region and the northern 
border zone  ................................ ................................ ................................ ....................... 66 
Box 3.2 Thresholds for notifying economic mergers, 2017 -21 ................................ ................  100 
Box 4.1 Mexican Petroleum Fund for Stabilization and Development (FMPED)  ..........................  128 
Box 4.2 Clean energy certificates (CEL), 2017 -2022 ................................ .............................  134 
Box 4.3 Electronic commerce in Mexico  ................................ ................................ ...............  153 
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  APPENDIX TABLES  
 
Table A1. 1 Merchandise exports by HS section and main chapter, 2016 -21 ............................  165 
Table A1. 2 Merchandise imports by HS section and main chapter, 2016 -21 ............................  167 
Table A1. 3 Merchandise exports by trading partner, 2016 -21 ................................ ...............  169 
Table A1. 4 Merchandis e imports by trading partner, 2016 -21 ................................ ...............  170 
Table A2. 1 Measures  notified to the WTO, 2017 -22 (31 May)  ................................ ...............  171 
Table A3. 1 Summary analysis of the MFN tariff, 2021  ................................ ..........................  173 
Table A3. 2 Multilateral (WTO) tariff quotas and import volume, 2020  ................................ .... 175 
Table A3. 3 Unilateral tariff quotas and import volume, 2020  ................................ .................  177 
Table A3. 4 Number of investigations initiated and concluded, and AD measures imposed,  
2017-21 ................................ ................................ ................................ .........................  180 
Table A3. 5 Overview of industrial property rights under the LFPPI  ................................ .........  182 
Table A4. 1 Air services agreements, 2017 -21 ................................ ................................ ..... 183 
 
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  SUMMARY  
1. The Mexican economy experienced a severe downturn starting in mid -2018, followed by a 
slight contraction in real GDP in 2019 due in particular to a fall in gross capital formati on, a reduction 
in public spending and a slowdown in private consumption. In 2020, the economy was badly affected 
by the COVID -19 pandemic, which caused GDP to shrink by 8.2% during the year. In 2021, the 
Mexican economy rebounded, with GDP growth of aroun d 4.8%, thanks in large part to the measures 
adopted to deal with the pandemic, which were aimed primarily at assisting the hardest -hit families 
and businesses, particularly small and medium -sized enterprises. These measures include the 
opening of faciliti es to provide an adequate level of liquidity, incentives for the restructuring of bank 
loans and the implementation of social programmes and business support programmes, such as the 
Financial Support Programme for Family -Run Microenterprises.  
2. With the exce ption of pandemic response measures, Mexican fiscal policy remained tight in 
order to keep the fiscal balance under control. In November 2019, the Federal Law on Republican 
Austerity was adopted. Its purpose is to contribute to the sound management of publ ic resources, 
focusing mainly on reducing non -priority current expenditure. In 2020, the federal government 
introduced fiscal measures to attenuate the effects of the COVID -19 pandemic on health and the 
economy, in an amount estimated to be equivalent to 2 % of GDP. Furthermore, measures were 
taken to cut spending, apart from on priority programmes. Overall, the Mexican federal 
government's finances improved between 2018 and 2019, when a deficit of around 2% of GDP was 
recorded. Through the Federal Law on Re publican Austerity, an attempt was made to reduce the 
deficit; however, as a result of the economic recession caused by the pandemic, there was a decline 
in revenue collection and an increase in spending (albeit moderate). The federal government deficit 
rose to 2.5% and 3.1% of GDP in 2020 and 2021, respectively. The public sector's net total debt 
has remained modest; in December 2021, it amounted to 46.3% of GDP.  
3. The Bank of Mexico operates an inflation targeting scheme to provide a framework for the 
imple mentation of monetary policy, with a permanent target of reaching an annual inflation rate of 
3%, plus or minus 1 percentage point, as measured by the national consumer price index (INPC). 
This target has not changed during the review period. In  2019, in r esponse to declining inflation, a 
series of cuts were made to the target interest rate, the main monetary policy  instrument, as part 
of a trend that intensified during the pandemic. A number of additional measures were implemented 
to promote orderly functi oning of the financial markets, strengthen credit channels and provide 
liquidity. Against a backdrop of growing inflation, June 2021 marked a turning point in monetary 
policy, with the target interest rate being raised six times between then and February 2 022. On 
30 September 2021, the additional measures expired, with the exception of those that remain 
available to the Bank of Mexico indefinitely. During the review period, the end -of-period INPC 
exceeded the inflation target in some years, while in others it was within the range of variability. 
Inflation accelerated in the last quarter of 2021, with the INPC increasing at an annual rate of 7%. 
The annual rate of change in the INPC in Mexico stood at 7.7% in May 2022.  
4. The current account of Mexico's balance of payments recorded a modest shortfall during 
2017-19, but experienced a sizeable surplus in 2020, before slipping back into a deficit, albeit a 
small one, in 2021. The COVID -19 pandemic caused a sharp contraction in exports and imports of 
goods and servi ces in 2020. However, the decline in imports was greater, and resulted in a surplus 
in the balance -of-payments current account of USD  26,210  million, or 2.4% of GDP. In 2021, the 
trade balance posted a deficit of USD  14,491  million (0.9% of GDP) and there was a current account 
deficit of  0.4% of GDP. Developments in the financial account enabled reserves to be accumulated 
throughout most of the period. During most of the period under review, annual foreign direct 
investment (FDI) flows remained at around US D 30 billion. The main FDI -recipient sectors were 
manufacturing industries, financial and insurance services, trade, transportation, mining and energy.  
5. During the period under review, trade in goods  experienced a slowdown, followed by a 
contraction, as a c onsequence of the COVID -19 pandemic, and a recovery in 2021. Merchandise 
exports in 2021 amounted to USD  494,225  million (18.5% higher than in 2020), while imports 
totalled USD  505,716 million (32% above the 2020 level). Mexico's exports continue to be 
dominated by manufactured products, which accounted for more than 85% of the total in 2021, 
while agricultural products made up 5%, and mineral products (mainly oil products) and those of 
the extractive industries, 7.5%. Imports and exports have similar struc tures. The main import 
products are electrical machinery and appliances (35.7% of imports in 2021), and transport 
equipment (8.0% of total imports). Mexico's export markets remain highly concentrated. The WT/TPR/S/429 • Mexico  
 
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  United  States is still Mexico's main trading partne r, with a share of total exports and imports in 2021 
of 80.7% and 43.8%, respectively. Mexico's services trade continued to be in deficit during the 
review period, owing mainly to shortfalls in transport and insurance. Travel, traditionally in surplus, 
was heavily affected by the pandemic.  
6. Mexico's  trade policy objectives are to promote foreign trade, defend its trade interests, and 
negotiate, implement and administer trade agreements. The use of trade as a tool to reduce poverty 
and socio -economic inequali ties has not yielded the expected results because of the export activities 
are predominantly focused on certain goods produced in a limited number of regions of the country. 
To promote export diversification, one of the trade policy objectives is to attrac t investment to 
sectors and regions that have historically had little export share and to continue to maximize the 
benefits granted under existing incentive programmes, specifically export promotion schemes. As 
part of its trade strategy, Mexico also promo tes women's empowerment. The scope of trade policy 
will also depend on the development of an adequate transport and logistics infrastructure.  
7. Mexico is a founding Member of the WTO and grants, as a minimum, most -favoured -nation 
(MFN) treatment to all its t rading partners. Mexico participates actively in the regular activities of 
the WTO, negotiations and discussions on new trade -related topics, and, given its high degree of 
integration in international trade, attaches great importance to the smooth function ing of a 
rules-based multilateral trading system that contributes to inclusive and sustainable development. 
In 2016, Mexico ratified the Trade Facilitation Agreement and undertook to implement all the agreed 
provisions immediately. In 2021, it established its National Trade Facilitation  Committee. Mexico is 
not a party to the Agreement on Government Procurement or the Agreement on Trade in Civil 
Aircraft, nor does it have observer status in the respective committees. Mexico is not a party to the 
Information  Technology Agreement either. Since its last trade policy review in 2017, Mexico has 
submitted various notifications to the WTO, in compliance with the different Agreements, and has 
not made frequent use of the dispute settlement mechanism.  
8. Regionalism is  considered of utmost importance for Mexico's trade relations, as evidenced by 
the large number of preferential trade agreements signed. Since 2017, three new treaties have 
entered into force for Mexico: the Comprehensive and Progressive Agreement for Tran s-Pacific 
Partnership (CPTPP); the Mexico -United States -Canada Agreement (T -MEC), which replaced the 
North American Free Trade Agreement (NAFTA); and the Trade Continuity Agreement with the 
United Kingdom.  
9. Mexico's investment regime is relatively open, although there are still some exceptions and 
restrictions with regard to FDI. Certain activities, mainly in the energy and services sectors, are still 
reserved to the State or to Mexican legal and natural persons, while in other sectors the share of 
FDI is limited (to 10%, 25% or 49%), or a majority share of FDI is subject to the authorization of 
the National Foreign Investment Commission (CNIE). Between 2017 and 2022, no changes were 
made either to FDI caps, except in the case of domestic airlines, o r to the activities and companies 
in relation to which they are applied. Despite the restrictions, and to allow the capitalization of 
Mexican companies, Mexico continues to use the neutral investment mechanism, through which 
foreigners may invest in sector s reserved to Mexicans or beyond the ceilings imposed on FDI, without 
the investment being regarded as foreign. However, this mechanism gives foreign investors limited 
rights.  
10. During the review period, the main change in the customs domain was the creation , in 2021, 
of the Mexican National Customs Agency (ANAM), which replaced the General Customs 
Administration (AGA). Since 2022, customs clearance for the import and export of goods has been 
carried out by ANAM. Despite the institutional change, the requirem ents for importing and exporting, 
and the procedures for determining the customs value of imported goods, have not changed 
substantially since the last review in 2017. However, since then, Mexico has continued to implement 
measures to facilitate trade, suc h as electronic customs clearance (paperless customs), the use of 
consolidated customs forms and the improvement of the Single Window for Mexican Foreign Trade 
(VUCEM).  
11. There was a significant reduction in the number of tariff lines during the review perio d. In 
2016, Mexico's tariff schedule contained 12,275 lines at the 8 -digit level of HS 2012, while in 2021, 
this number fell to 7,802 lines at the HS 8 -digit level of HS 2017. However, the MFN tariff structure 
has not changed substantially. Mexico uses mos tly ad valorem  tariffs, with the exception of 45 tariff 
lines for which it uses compound or specific tariffs; the two types of tariffs continue to apply to the WT/TPR/S/429 • Mexico  
 
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  same category of products as in 2016. Mexico also uses seasonal tariffs for three tariff lines. The 
average applied MFN tariff rose during the review period, from 5.5% in 2016 to 6.7% in 2021. 
Despite the rise in the average tariff, the protection afforded to agricultural products (WTO definition) 
fell from 14.3% in 2016 to 13.2% in 2021. As in 2016,  non-agricultural products are subject to a 
lower average tariff than agricultural products, although during the review period it increased from 
4.6% to 5.9%.  
12. The duty -free status granted under all the free trade agreements (FTAs), except that with 
Panama and under the CPTPP, covers over 90% of the total tariff schedule, and in some cases even 
reaches 99% or 100%. Despite the large number of trade agreements signed by Mexico, the low 
rates of preferential tariffs negotiated and the high degree of trade libe ralization provided for in 
these agreements, the percentage of imports receiving preferential treatment remained at around 
36% in both 2020 and 2021. The low take -up of preferential tariff could be attributed to the existence 
of other preferential regimes to promote production and exports, or to tariff concessions granted, 
for example, to some of the goods imported into the border region and the northern border zone. 
In addition, nearly 50% of the tariff lines in Mexico's MFN schedule already have a tariff of 0%, which 
could have eroded the preferences granted under the FTAs. As a result of tariff concessions and 
preferential trade, the share of tariffs as a percentage of Mexico's total tax revenues has remained 
steady at around 2% during the period under re view. 
13. The use of anti -dumping, countervailing and safeguard measures is central to Mexico's trade 
policy. Nevertheless, during the period 2017 -21, Mexico reduced recourse to these measures. For 
example, in the period in question, it initiated 28 anti -dumpi ng investigations, which is fewer than 
in the previous review period (2012 -16), when it initiated 34 investigations. Most of the 
investigations initiated concern products from China (39.3%), the EU (14.3%), the United States 
(10.7%), Japan and the Republic  of Korea (both 7.1%). During the review period, Mexico imposed 
28 final measures. As of December 2021, Mexico had 78 anti -dumping duties and two price 
undertakings. With regard to countervailing measures, Mexico did not initiate any investigations and 
has only three measures in force, with an average duration of eight years and two  months. 
Moreover, Mexico did not initiate any safeguard investigations and has no measures in force, nor did 
it use the special safeguard provisions of the Agreement on Agricult ure. 
14. The federal government can prohibit imports (or exports) or impose non -tariff regulations and 
restrictions (RRNAs) when it sees a pressing need to do so. RRNAs may consist of: prior permits, 
maximum quotas, Mexican Official Standards (NOMs), compensat ory quotas, certifications, marking 
of the country of origin or other instruments considered appropriate for the purpose of achieving 
national trade policy  objectives. The reasons why this type of measure is imposed have not changed 
since 2017. For example , Mexico continues to prohibit the import of certain products, in particular 
chemicals and drugs, to protect human life and health. Mexico uses both automatic licensing 
(automatic permits) and non -automatic licensing (prior permits). In principle, the use of one type of 
licence does not exclude the other, i.e. both licences may be required to import the same good, 
since they serve different purposes. Mexico continues to require the use of both licences for textiles, 
footwear and metals.  
15. In 2021 (as in 2017), the general export tax (IGE) was levied on just two tariff lines (two  types 
of petroleum products). It is levied in order to guarantee supplies to the domestic market or to 
protect human health, the environment, fauna, flora and cultural heritage. T o these same ends, 
Mexico regulates exports of certain products through automatic licensing (automatic permits) and 
non-automatic licensing (prior permits). Other types of permit may be required in addition to 
licensing, such as plant or animal health cert ificates, the health certificate for food or a certificate 
issued by the regulatory councils for exports of tequila, mezcal and coffee.  
16. Mexico has continued  to implement, without substantial changes, export promotion 
programmes, through which it offers tar iff and tax concessions, particularly to the manufacturing 
sector. The purpose is to promote productivity and increase competitiveness, thereby enabling 
Mexican products to be further incorporated into the global market. The main programmes remain 
the prog ramme for manufacturing, maquila and export services industry (IMMEX) and the import 
duty drawback programme for exporters. During the period under review, Mexico notified the WTO 
of various export subsidy programmes. Under the IMMEX programme, producers o f goods for export 
or companies providing services for export may import , on a temporary basis,  various goods free of 
general import tax and, where applicable, of anti -dumping or countervailing duties, so that these 
goods may be used in the production of e xport products. They may also obtain a 100% tax credit WT/TPR/S/429 • Mexico  
 
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  for VAT and/or the special tax on production and services (IEPS). This programme continues to be 
of great importance for Mexican trade. Over the period 2016 -21, firms benefiting from the IMMEX 
programm e were on average responsible for 55.8% of exports and 43.3% of imports. The main 
imports and exports were machinery, mechanical appliances or electrical goods under 
HS chapters  84 and 85.  
17. In addition to the export promotion programmes, Mexico has other pr ogrammes to attract 
investment and create jobs, a number of which have been notified to the WTO. Most of these 
programmes were already in place and had been notified when the previous review was carried out 
in 2017. These include the sectoral promotion (PR OSEC) programmes, under which inputs and 
machinery needed to produce specific goods can be imported under a preferential tariff, irrespective 
of whether the final good is consumed on the domestic market or exported. The only change since 
the previous revie w was the introduction of a programme for the fertilizer sector. As of May 2021, a 
total of 2,487 tariff lines were covered by PROSEC programmes. The most common preferential tariff 
rates in 2021 were 0% and 5%, which were applied to 76.2% and 19.1% of the  tariff lines covered, 
respectively.  
18. In 2020, the Federal Law on Metrology and Standardization (LFMN), which regulated the 
national quality system, was repealed and replaced by the Law on Quality Infrastructure (LIC). 
However, the regulations implementing the LIC have not yet been finalized , and those implementing 
the LFMN continue to be used, unless they conflict with the LIC. S ince the previous review , there 
has been no change to the procedure for preparing, issuing or revising Mexican Official Standards 
(NOMs) (technical regulations) and Mexican Standards (NMXs) ( specifications or standards ). In 
2017-21, certain Members posed questions about NOMs in the WTO TBT Committee on four 
occasions. The procedures for preparing sanitary and phytosanitary (SPS) measures are also 
stipulated in the 2020 LIC and in specific laws on the matter. Between 2017 and 2021, six specific 
trade concerns on measures adopted by Mexico were submitted to the WTO SPS Committee.  
19. Mexico continues to have two bodies that promote and protect competition: the Federal 
Economic Competition Commission (COFECE) and the Federal Telecommunications Institute (IFT). 
Although the law clearly sets out the powers of each of the bodies, conflicts between the COFECE 
and the IFT have arisen in recent  years in relation to their remits, mainly concerning the analysis of 
concentrations in the digital markets. Medicine and electricity prices are still regulated. Retail price 
controls on liquefied petroleum gas (LPG), which had been eliminated in 2017, wer e reintroduced in 
2021.  
20. During the review period, the federal government procurement regime has sought to promote 
the use of the consolidated procurement process and framework agreements, with the aim of 
rationalizing public spending and fostering efficien cy and transparency. However, government 
procurement through the direct awarding of contracts increased substantially in 2020 and 2021 due 
to the pandemic. In 2018, the tasks of formulating and implementing government procurement 
policy and administering t he online procurement platform, which had until then been the 
responsibility of the Ministry of Public Administration, were transferred to the Ministry of Finance and 
Public Credit (SHCP). In general, government procurement procedures remain decentralized.  
However, consolidated procurement may be carried out by the SHCP. State -owned production 
enterprises (EPEs), Petróleos Mexicanos (PEMEX) and the Federal Electricity Commission (CFE) have 
their own procurement regimes.  
21. The Federal Law on Industrial Propert y Protection (LFPPI) was promulgated in 2020, which 
strengthened the industrial property rights regime. Few patents were granted to residents during 
the review period. The registration of utility models continues to be the method most commonly 
used by resi dents to protect their inventions; in 2020 the protection period for utility models was 
extended from 10 to 15 years. With regard to enforcement, new preventive measures were 
introduced and administrative dispute proceedings streamlined during the period u nder review. 
Moreover, the protection of copyright and related rights in the digital sphere was strengthened 
through the implementation of new anti -piracy tools. However, the purchase of products that infringe 
intellectual property rights is not penalized,  which means that this practice continues to be 
commonplace and incurs economic and tax losses.  
22. The agricultural sector is of great importance to Mexico, not so much because of its 
contribution to GDP (3.8% in 2021), but because around 28 million inhabita nts in rural areas rely 
on agricultural activities. It is thus important for social, economic and environmental equity. Mexico WT/TPR/S/429 • Mexico  
 
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  is also a net importer of agricultural products. The country therefore has a series of support 
programmes for the sector, as well  as tariff protection levels that are above both the overall tariff 
average (6.7%) and the tariff average for non -agricultural products (5.9%); the protection granted 
to agricultural products (WTO definition) was 13.2% in 2021. On average, the highest tari ffs by 
WTO category continue to be applied to sugar and confectionery, and to dairy products, with tariffs 
of 30% and 22.1% respectively.  
23. Mexico provides support to the agriculture, livestock and fishery sector through a series of 
programmes. S ince 2019 , Mexico's agricultural policy has focused even more heavily on achieving 
food self -sufficiency and supporting small producers. To that end, various support programmes were 
merged, others were abolished and new one created. In general, the programmes have com ponents 
and subcomponents that change from year to year, as provided for in their rules of operation. Some 
of these programmes have been notified as domestic support to the WTO Committee on Agriculture 
and others to the Committee on Subsidies and Counterva iling Measures. Mexico also notified the 
WTO that it had granted subsidies to agricultural exports in 2017 and 2018, but did not grant them 
over the remainder of the review period.  
24. Competition in all energy sector activities has been permitted since 2013, except in those 
reserved to the State: the exploration and extraction of hydrocarbons, the use of nuclear energy to 
produce electricity, and the transmission and distribution of electricity. However, the energy policy 
since 2017 has sought to further boost  the participation of State -owned enterprises in the sector by 
adopting measures to encourage PEMEX and the CFE to participate in the various activities in which 
the private sector is engaged. PEMEX is still the main operator in the hydrocarbons sector and  the 
biggest contributor to Mexico's public purse. However, the company is facing financial and 
operational challenges, which has led the State to take steps to guarantee the profitability and 
ensure the sustainability of the company. Mexico is a major pro ducer of crude oil, but its limited 
capacity to refine the crude oil it extracts means that it exports much of its production and imports 
refined products. One of the main objectives of the sectoral policy is therefore to improve refining 
capacity in order  to become self -sufficient.  
25. Since the previous review in 2017, the Mexican financial system has continued to perform 
well. As of 30 March 2022, the financial system in Mexico was composed of 4,973 entities. The main 
financial system intermediary is the co mmercial (multiple) banking system, whose assets represent 
42.3% of GDP. Non -bank financial intermediaries accounted for 34% of assets. Subject to a 
favourable opinion from the Bank of Mexico, the commercial presence of foreign banks is permitted 
through t he establishment of subsidiaries, under conditions of reciprocity, in accordance with the 
provisions of the free trade agreements signed by Mexico and other agreements. No restrictions are 
imposed on the operations of a subsidiary, which may offer the same  services and products as a 
domestic commercial bank. Foreign banks are also permitted to establish representative offices . The 
commercial banking system remains highly concentrated. As of December 2021, the five largest 
banks (three of which were foreign -owned) held 67% of assets. As in the commercial banking 
system, Mexico allows for the commercial presence of foreign insurance companies through 
subsidiaries and representative offices. In July 2018, a second stock exchange began to operate in 
Mexico: the Bolsa Institucional de Valores, S.A. de C.V.  (BIVA) . Companies have the option of listing 
their debt or equity securities on either exchange and their securities are traded on both.  
26. The telecommunications market in Mexico is highly concentrated; there is s till a dominant 
economic operator, the operations of which are subject to asymmetric regulatory measures in order 
to foster competition among all operators. During the review period, the implementation of these 
measures led to a certain level of competitio n being achieved in fixed services. However, the same 
outcome was not seen in the mobile services market.  
27. In the area of transport, Mexico wishes to establish itself as a new gateway for multimodal 
traffic between Asia and the east coast of the United Stat es, and has therefore begun work on the 
creation of a multimodal transport corridor in the isthmus of Tehuantepec. In the air transport sector, 
between 2017 and 2022, Mexico allowed greater foreign participation in domestic airlines (raising 
the FDI limit from 25% to 49%) and competition in the jet fuel market. Mexico has also continued 
to expand international air connectivity to encourage tourism and trade; the degree of openness of 
services has been increased in new air services agreements and certain exi sting agreements have 
been revised. The metropolitan area of Mexico City (CDMX) has been served by three international 
airports since 2022. However, the original project for a new international airport in Mexico City was 
abandoned and, instead, a military base was converted into one. In the maritime -port sector, since WT/TPR/S/429 • Mexico  
 
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  2021, all ports have been managed and operated by the State. Prior to this, a private operator held 
the concession for the port of Acapulco, but this concession was not renewed. Moreover, fore ign 
participation in the provision of certain port services is still limited or subject to conditions. Despite 
this, the majority of Mexico's foreign trade and cabotage freight is usually transported by foreign 
vessels.  
28. Tourism is a highly important sector  for the Mexican economy. It has traditionally been one 
of Mexico's main sources of foreign exchange. During the pandemic, Mexico did not restrict the entry 
of foreign tourists, thereby becoming one of the world's top tourist destinations in 2020. The sect or 
did not receive any governmental support to deal with the effects of the health crisis, although it is 
the biggest recipient of financial aid granted by the federal development bank  
 WT/TPR/S/429 • Mexico  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.1   Sectoral developments in production and employment  
1.1.  During the review period, the Mexican economy grew relatively slowly, exacerbated by fallout 
from the COVID -19 pandemic, leading to a sharp contraction in gross domestic product (GD P) 
in 2020 followed by a partial recovery in 2021. The authorities responded to the impact of the 
pandemic by implementing a series of measures to promote more orderly market behaviour and to 
help, above all, the families and businesses most affected, part icularly micro, small and 
medium -sized enterprises (MSMEs). Such measures included opening facilities to provide an 
adequate level of liquidity in short -term funding markets, fostering the orderly functioning  of 
financial markets and strengthening credit a ccess channels, along with temporary relief from credit 
card payments, a moratorium on principal and interest payments for borrowers whose income source 
was affected by the pandemic, incentives for bank loan restructuring, and implementing social 
programme s and support programmes for businesses, including the Financial Support Programme 
for Family Microenterprises (see below).1 
1.2.  Regarding the sectoral composition of GDP, while the share of goods production grew during 
the review period (2017 -21), that of se rvices shrank (Table 1.1). This reflects the fact that, even 
though all economic sectors were adversely affected by the COVID -19 pandemic, and despite steps 
taken to slow its spread, services were hardest hit.  
1.3.  The GDP share of agriculture increased slightl y during the review period, from around 3.4% 
of GDP at basic prices in 2017 to 3.8% in 2020 and 2021. The manufacturing share also grew, 
accounting for 18.0% of GDP in 2021, up from 17.4% in 2017. Likewise, the share of mining, 
including hydrocarbons, rose  during the period, accounting for 5.2% of GDP at basic prices in 2021, 
compared to 4.1% in 2017, largely reflecting the upturn in the oil sector and the improved 
performance of metallic and non -metallic mineral mining as a share of GDP.  
1.4.  The pandemic took a heavy toll on service output, the GDP share of which shrank from 60.1% 
in current prices in 2017 to 58.4% in 2021.2 Hotel and restaurant services , business support 
services, and real estate services were particularly affected. The GDP share of health se rvices, 
however, increased from 2.2% in 2017 to 2.5% in 2021.  
Table 1.1 Basic economic indicators, 2016 -22 (Q1) 
 
2016  2017  2018  2019  2020  2021a 2022 
(Q1)a 
Gross domestic product (GDP)  
Current GDP (MXN  thousand 
million)  20,129  21,934  23,524  24,446  23,416  26,274  27,644  
Current GDP (USD thousand 
million)  1,078  1,159  1,222  1,269  1,090  1,296  1,347  
Real GDP, growth rate (%)  2.6 2.1 2.2 -0.2 -8.1 4.8 1.8 
Per capita GDP (MXN)  163,989  176,913  189,750  194,750  183,617  205,268  215,515  
Per capita GDP (USD)  8,786  9,347  9,860  10,110  8,546  10,126  10,502  
By branch of economic activity (percentage of current GDP)  
Primary activities  3.3 3.4 3.4 3.4 3.8 3.8 3.7 
Crop farming , animal breeding and 
raising, forestry, fishing and 
hunting  3.3 3.4 3.4 3.4 3.8 3.8 3.7 
 Crop farming  2.1 2.2 2.2 2.2 2.4 2.5 2.4 
 Animal breeding and raising  1.1 1.0 1.0 1.0 1.1 1.1 1.1 
 Forestry  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 Fishing, hunting and trapping  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 
1 Official Journal of 24 and 27 April and of 7 May 2020, respectively; and National Council for Social 
Development Policy Evaluation (CONEVAL), 2020, La política social en el contexto de la pandemia por el 
virus SARS -CoV-2 (COVID -19) en México . Viewed at: 
https://www.coneval.org.mx/Evaluacion/IEPSM/Documents/Politica_Social_COVID -19.pdf . 
2 The authorities noted that the 1.7 percentage point (p.p.)  fall in the GDP share of services occurred 
chiefly between 2020 and 2021, following the impact of and partial recovery from the pandemic. Business 
support services also accounted for 0.8 p.p. of the fall. (1.1 p.p. from 2020 to 2021).  WT/TPR/S/429 • Mexico  
 
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2016  2017  2018  2019  2020  2021a 2022 
(Q1)a 
 Services related to agricultural 
and forestry activities  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Secondary activities  29.6 30.9 31.1 30.8 29.7 31.9 34.2 
Mining  3.6 4.1 4.1 4.3 4.0 5.2 6.4 
 Petroleum and gas extraction  2.1 2.6 2.6 2.8 2.1 3.3 4.2 
 Mining of metallic and non -
metallic minerals  1.1 1.1 1.1 1.1 1.4 1.5 1.5 
 Services incidental to mining  0.4 0.4 0.3 0.4 0.5 0.4 0.7 
Generation, distribution and 
transmission of electricity, supply of 
water and gas  1.5 2.0 2.0 2.2 2.1 1.9 1.8 
Construction  7.4 7.4 7.5 7.1 6.4 6.8 7.0 
Manufacturing  17.2 17.4 17.5 17.3 17.3 18.0 19.0 
 Food industry  3.6 3.5 3.5 3.5 3.8 3.8 4.1 
 Beverages and tobacco industry  1.0 1.0 1.0 1.1 1.1 1.1 1.1 
 Textile inputs and textile finishing  0.2 0.1 0.1 0.1 0.1 0.1 0.1 
 Textile products, other than 
clothing  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 Clothing  0.4 0.3 0.3 0.3 0.2 0.3 0.3 
 Tanning, finishing and 
manufacturing of hides and skins  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 Wood industry  0.1 0.1 0.1 0.1 0.1 0.2 0.2 
 Paper industry  0.3 0.3 0.3 0.3 0.3 0.3 0.3 
 Printing and related industries  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 Petroleum and coal products  0.2 0.6 0.7 0.6 0.6 0.9 1.1 
 Chemical industry  1.3 1.1 1.0 1.0 1.0 1.0 1.1 
 Rubber and plastics industry  0.5 0.5 0.5 0.5 0.5 0.6 0.6 
 Non-metallic mineral products  0.4 0.5 0.4 0.4 0.4 0.4 0.5 
 Basic metal industries  1.0 1.0 1.1 1.0 1.0 1.3 1.4 
 Metal products  0.6 0.6 0.6 0.6 0.6 0.7 0.8 
 Machinery and equipment  0.7 0.7 0.7 0.7 0.7 0.7 0.6 
 Computer, communication, 
measurement equipment, etc.  1.6 1.6 1.6 1.6 1.6 1.6 1.7 
 Electronical equipment and 
accessories, etc.  0.6 0.6 0.6 0.5 0.6 0.6 0.6 
 Manufacture of transport 
 equipment  3.7 3.9 3.9 3.9 3.6 3.5 3.7 
 Furniture, mattresses and blinds  0.2 0.2 0.2 0.2 0.2 0.2 0.2 
 Other manufacturing industries  0.4 0.4 0.5 0.4 0.4 0.5 0.4 
Services  60.8 60.1 59.9 60.0 60.2 58.5 56.7 
 Wholesale trade  9.3 9.4 9.5 9.2 9.3 9.7 9.8 
 Retail trade  9.2 9.4 9.3 9.4 9.3 9.7 9.2 
 Transport, postal and warehousing 
services  6.0 6.1 6.2 6.2 5.5 5.8 6.0 
 Information in mass media  1.6 1.6 1.6 1.5 1.5 1.5 1.4 
 Financial and insurance services  3.7 3.9 4.0 4.0 4.2 3.8 3.9 
 Real estate, rental and leasing of 
movable and intangible property  10.5 10.0 9.7 9.7 10.3 9.6 9.4 
 Professional, scientific and 
technical services  1.9 1.8 1.8 1.8 1.9 1.8 1.7 
 Corporate services  0.6 0.6 0.6 0.6 0.7 0.6 0.6 
 Business support and waste 
management services  3.2 3.3 3.3 3.4 3.6 2.5 0.9 
 Educational services  3.9 3.7 3.6 3.7 3.9 3.5 3.5 
 Health and social services  2.2 2.2 2.2 2.3 2.6 2.6 2.5 
 Recreational, cultural and sporting 
services, etc.  0.4 0.4 0.4 0.4 0.3 0.3 0.3 
 Hotel and restaurant services  2.2 2.2 2.2 2.3 1.4 1.7 2.0 
 Other services except public 
administration  2.0 1.9 1.9 1.9 1.8 1.7 1.7 
 Public administration, etc.  3.8 3.7 3.7 3.6 4.0 3.7 3.7 
Gross value added  93.7 94.5 94.5 94.2 93.7 94.2 94.6 
Net taxes on products  6.3 5.5 5.5 5.8 6.3 5.8 5.4 
Other economic indicators (percentage of current GDP)   
Gross national savings  23.6 22.9 22.7 21.2 19.2 20.2 .. 
Domestic savings  21.4 21.1 20.7 20.8 21.5 19.8 .. 
Employment   
Employment rate (%)  96.2 96.6 96.7 96.5 95.6 95.9 96.5 
Unemployment rate (%)  3.8 3.4 3.3 3.5 4.4 4.1 3.5 
Employment by economic activity (%)   
Crop farming, livestock farming, 
forestry, hunting and fishing  13.1 12.8 12.5 12.2 12.6 12.3 11.5 
Extractive and electricity industries  0.8 0.8 0.8 0.7 0.7 0.7 0.7 WT/TPR/S/429 • Mexico  
 
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2016  2017  2018  2019  2020  2021a 2022 
(Q1)a 
Manufacturing  16.3 16.8 16.8 16.7 16.5 16.5 16.7 
Construction  8.2 8.2 8.2 7.8 7.6 7.9 7.7 
Services  61.0 60.9 61.2 62.0 62.1 62.0 62.7 
 Trade  18.9 18.4 18.7 19.4 19.1 19.2 19.3 
 Hotel and restaurant services  7.4 7.5 7.5 8.0 7.1 7.5 7.9 
 Transport, communications, postal 
and warehousing services  5.1 5.1 5.3 5.1 5.2 5.1 5.4 
 Professional, financial and 
corporate services  6.9 7.0 7.2 7.1 7.2 7.5 7.7 
 Social services  8.0 8.2 8.1 7.8 8.0 8.4 8.4 
 Miscellaneous services  10.4 10.4 10.2 10.3 10.2 9.9 10.1 
 Government and international 
organizations  4.4 4.3 4.2 4.3 5.1 4.4 3.9 
Not specified  0.5 0.6 0.6 0.6 0.5 0.6 0.6 
Memorandum item        
  
Economically active population (%)  59.8 59.4 59.6 60.1 55.4 58.6 58.6 
Total population (million, end of 
period)  122.7  124.0  124.0  125.5  127.5  128.0  128.3  
.. Not available.  
a Preliminary figures.  
Source:  National Institute of Statistics and Geography (INEGI) and International Monetary Fund (IMF), 
International Financial Statistics (IFS) database.  
1.5.  Even though economic activity p icked up in the first two quarters of 2021, it slowed down in 
the second half of the year.3 The main impact of the pandemic -induced economic contraction on the 
labour market was a sharp drop in the workforce, amid the measures taken to contain the pandemi c. 
Most notably, the average participation rate slipped from 60.2% in 2019 to 57.7% in 2020, and 
partially bounced back to 58.5% in 2021. It also led to a jump in the unemployment rate from 3.5% 
of the economically active population in 2019 to 4.4% in 2020 , before coming down to 4.1% in  2021. 
In January 2022, the unemployment rates for men and women stood at 3.65% and 3.33%, 
respectively, the former higher than the unemployment rates in the first quarter of 2020, the latter 
slightly lower. While a number of  labour market indicators continued to show improvements in the 
fourth quarter of 2021 compared to the third quarter, in early 2022, in view of  a spike in 
Omicron  variant COVID -19 infections, some of these indicators showed declines, which varied by 
sector  of activity. For example, while the labour market participation rate of people aged 15 and 
over showed a gradual recovery during the last quarter of 2021, averaging 59.5%, it shrank 
to 58.3% in January 2022. The labour participation rate also remains well  below its (pre -pandemic) 
level of the first quarter of 2020, when it stood at 59.9%. Moreover, although underemployment 
and extended  unemployment rates have fallen, they remain at high levels, resulting in a labour 
informality rate of 55.9% in the fourth quarter of 2021, close to levels preceding the health 
emergency.  
1.6.  Following a surge in the second quarter of 2020, largely on account of the reduction in 
employment resulting from the pandemic, labour productivity in the economy as a whole fell during 
the last two quarters of 2020 and in 2021. This reflected a recovery in hours worked at a faster pace 
than the increase in GDP.  
1.7.  As a resul t of Article IV consultations in 2021, in November of that year the International 
Monetary Fund (IMF) noted that the Mexican economy is rebounding from its deepest recession in 
decades, driven by strong US growth and the pandemic -related re -opening of sect ors. IMF Executive 
Directors commended the authorities for maintaining economic stability during the pandemic, 
underpinned by strong macroeconomic policies and institutional frameworks. However, they 
emphasized that while the economy continues to recover, there is a need to safeguard the recovery 
and promote stronger, more inclusive and greener growth. The Directors saw merit in additional 
fiscal support targeting health and education, social safety nets and quality public investment, along 
with enhanced sp ending efficiency, and reform of the business strategy and governance of 
State -owned company, Petróleos Mexicanos (PEMEX). They also urged Mexico to implement a 
medium -term tax reform as the economy strengthens, which would help finance needed social and 
 
3 Bank of Mexico, Informe Trimestral, octubre -diciembre de 2021 . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimes trales/%7B9CE4F0BD -2CE1-0A7C -9A88-
7FBFC2411A53%7D.pdf . WT/TPR/S/429 • Mexico  
 
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  public investment spending and put the public -debt-to-GDP ratio on a firm downward trajectory. The 
authorities were encouraged to tackle impediments to productivity growth through structural 
reforms, such as by promoting labour market formality, narrowing g ender gaps, fostering financial 
inclusion and improving governance.4 
1.8.  During the review period, Mexico signed three agreements with the IMF under the Flexible 
Credit Line (2017, 2019 and 2021), having made nine arrangements of this type thus far, which 
Mexico intends to treat as precautionary. As noted by the IMF, in recent years, Mexico has been on 
a path of gradually reducing access under its Flexible Credit Line arrangements, and the new 
arrangement continues on this path. The most recent arrangement was signed 
on 19 November  2021, designed for crisis prevention, for two y ears under the Flexible Credit Line, 
and for an amount equivalent to SDR (special drawing rights) 35,650.8 million  (about USD 50 billion, 
equivalent to 400% of Mexico's quota). Mexico also cancelled the previous arrangement. The IMF 
notes that the authorit ies have successfully maintained external, financial, and fiscal stability, 
despite the pandemic -related challenges. Nevertheless, the Mexican economy remains exposed to 
external risks, which could increase yields, risk premia, and capital outflows from Me xico. Therefore, 
the new arrangement under the Flexible Credit Line plays a role in supporting the macroeconomic 
strategy by providing insurance against tail risks and bolstering market confidence. The previous 
arrangement under the Flexible Credit Line of  22 November 2019 was approved for an access 
amount equivalent to SDR 44,563.5 million , equivalent to USD 61 billion.5 The arrangement 
of 29 November  2017 was approved for an original access amount equivalent 
to SDR 62,388.9  million (USD 88 billion)6, which, at the request of the Mexican authorities, was 
reduced to SDR  53,476.2  million (USD 74 billion) on 26 November 2018.  
1.9.  As regards the OECD, in its most recent report published in February 2022, it commended 
Mexico for safeguarding macroeconomic stabilit y amid the COVID -19 pandemic through its solid 
macroeconomic policies, underpinned by innovative debt management, sound monetary policy and 
a flexible exchange rate regime.7 The OECD notes that Mexico's potential to be a high -growth 
economy is large, havi ng transitioned from an oil dependent economy in the early 1990s to a 
manufacturing hub integrated in global value chains. However, it notes that such potential remains 
unrealized and growth over the most recent decades has been low. The OECD recommendatio ns to 
help realize this potential, include: further improving macroeconomic policies, by increasing public 
investment over the medium -term, and spending on social programmes, education and health, with 
a special focus on low -income households; broadening t ax bases by phasing out exemptions and by 
reducing informality; introducing a long -term debt anchor and widening the share of public spending 
covered by the spending rule; establishing an independent fiscal council; strengthening PEMEX and 
other SOEs' gove rnance; improving regulatory stability; strengthening the credit registry system; 
strengthening competition; promoting the formalization of firms; establishing a federal 
unemployment insurance scheme; and promoting renewables generation, among others.8 
1.1.2   Measures to address the pandemic  
1.10.   The Mexican Government implemented a series of measures to mitigate the adverse economic 
effects of the COVID -19 pandemic. The measures were mainly aimed at providing support for 
families and enterprises, in particular MSMEs,  increasing credit and the liquidity available to the 
economy, and accelerating the implementation of the budget. Mexico did not implement substantial 
 
4 IMF Press Release No.  21/323: IMF Executive Board Concludes 2021 Article IV Consultation with 
Mexico , 5 November 2021.  Viewed at:  https://www.imf.org/en/News/Articles/2021/11/05/pr21323 -mexico -
imf-executive -board -concludes -2021-article -iv-consultation -with-mexico . 
5 IMF Press Release No.  19/431: IMF Executive Board Approves New Two -Year US$61 Billion Flexible 
Credit Line Arrangement with Mexico , 25 November 2019. Viewed at: 
https://www.imf.org/en/News/Articles/2019/11/25/pr19431 -mexico -imf-executive -board -approves -new-two-
year-us-61-billion -fcl-arrangeme nt. 
6 IMF Press Release No. 17/459: IMF Executive Board Approves New Two -Year US$88 Billion Flexible 
Credit Line Arrangement with Mexico , 30 November 2017. Viewed at: 
https://www.imf.org/en /News/Articles/2017/11/30/pr17459 -mexico -imf-executive -board -approves -new-two-
year-us-88-billion -fcl-arrangement . 
7 OECD (2022), OECD Economic Surveys: Mexico , February 2022. Viewed at: https://read.oecd -
ilibrary.org/economics/oecd -economic -surveys -mexico -2022_2e1de26c -en#page11 . 
8 OECD (2022), OECD Economic Surveys: Mexico , February 2022. Viewed at: https://read.oecd -
ilibrary.org/economics/oecd -economic -surveys -mexico -2022_2e1de26c -en#page14 . WT/TPR/S/429 • Mexico  
 
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  support packages, as other countries did, but instead opted to remain on the path of fiscal and 
financial  stability. However, this came at a high price in terms of economic contraction.  
1.11.   The IMF estimates that the measures introduced by Mexico directly to address the health 
crisis represented an increase in public spending amounting to 0.4% of GDP in 2020. Oth er measures 
adopted included: advancing payments of old -age and disability pensions by eight months; 
expediting procurement processes and VAT reimbursements; granting loans to enterprises and 
workers in both the formal and informal sector (see below); and providing liquidity support and 
guarantees from the development bank for a total of MXN 257.1 billion. The IMF estimates that 
"above -the-line" budgetary measures represented 0.7% of GDP in 2020, while "below -the-line" 
measures were equivalent to 1.2% of GD P.9 This support was limited, in comparison with that 
received by other economies.  
1.12.   The measures implemented to support MSMEs included the Financial Support Programme for 
Family Microenterprises and the two amendments thereto, published in the Official Jou rnal of 
24 and 27 April and 7 May, respectively, which granted direct financial support to formal and 
informal enterprises in urban areas.10 The Financial Support Programme for Family Microenterprises 
was a response by the federal govern ment to the economi c crisis resulting from the pandemic, to 
ensure the sustainability of microbusinesses, enterprises, self -employed persons, service providers, 
domestic workers and independent workers, in order to safeguard their economic activity and to 
maintain the jobs c reated. In 2020, the Programme comprised two schemes, with specific eligibility 
criteria and requirements: (a) the Family Microenterprise Scheme ( Modalidad Microempresa 
Familiar ), the criteria for which were: preferably to be part of the Wellness Census ( Censo para el 
Bienestar ); to have a non -agricultural microbusiness, or, otherwise, to be a self -employed person 
or an individual providing services, that has been operating for at least six months; to be located in 
certain municipalities or territorial dema rcations; and to have work premises, a work establishment 
or a work tool; and (b) the Solidarity Support Scheme ( Modalidad Apoyo Solidario a la Palabra ), for 
which solidarity -based enterprises (registered enterprises which, at 15 April 2020, had the same 
number of employees as the average number of employees in the first quarter of 2020) in the formal 
sector, and domestic and independent workers, were considered eligible.  
1.13.   In 2021, three schemes were implemented under the Programme, which aimed to help 
maint ain economic activities, and which mainly benefited enterprises that met their fiscal and 
employer obligations in accordance with the following: (a) the Family Microenterprise Scheme, the 
eligibility criteria for which were similar to those in 2020; (b) th e Compliant Enterprises Scheme 
(Modalidad Empresas Cumplidas ), aimed at formally registered microenterprises that had retained, 
at 30 November 2020, at least the average number of employees registered with the Mexican Social 
Security Institute (IMSS) durin g the period from August to October 2020 for microenterprises 
engaged in essential activities, and at least 85% for microenterprises engaged in non -essential 
activities; (c) the Women's Solidarity Scheme, aimed at women over 18 years of age who were 
regist ered under one of the active fiscal regimes and who did not receive financial support under the 
programme in the fiscal year 2020.  
1.14.   The loans granted in both financial years amounted to MXN 25,000, with rates adjusted 
according to the size of the enterprise  and the support scheme, with reimbursement in 33 monthly 
payments as from the fourth month. The authorities estimate that the programme 
delivered  1,396,251 grants between January and December 2020 for a total 
of MXN 34,906.2  million. In 2021, the programme approved 61,650 grants for a total 
of MXN 1,541.25 million.  
1.15.   Furthermore, in alliance with the Rural Sector Capitalization and Investment Fund (FOCIR), 
in 2020, the Ministry of Economic Affairs  developed and implemented the f irst call for applications 
under the Emergency Programme for Economic Recovery UDP -FOCIR11,which granted loans of up 
 
9 IMF, Policy Responses to COVID -19. Viewed at: https://www.imf.org/en/Topics/imf -and-
covid19/Policy -Responses -to-COVID -19#. 
10 Official Journal of 24 and 27 April and 7 May 2020, respectively (Official Journal, 2020g; 
Official  Journal, 2020i; Official Journal, 2020j) and National Council for Social Development Policy Evaluation 
(CONEVAL), 2020, La política social en el contexto de la pandemia por el virus SARS -CoV-2 (COVID -19) en 
México . Viewed at: https://www.coneval.org.mx/Evaluacion/IEPSM/Documents/Politica_Social_COVID -19.pdf . 
11 Government of Mexico, Fondo de Capitalización e Inversión del Sector Rural. Acciones y Programas. 
Programa Emergente de Reactivación Económica UDP FOCIR. Viewed at: https://www.gob.mx/focir/acciones -
y-programas/programa -emergente -de-reactivacion -economica -udp-focir. WT/TPR/S/429 • Mexico  
 
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  to MXN 180,000 at an ordinary annual rate of 10%, to formal enterprises registered under the tax 
inclusion regime (RIF) or the business reg ime (RAE) with up to 50 employees, in order to cover their 
short-term requirements in terms of liquidity, working capital and fixed assets (machinery and 
equipment). The following sectors and production activities were considered as priority for this 
programme: retail trade; accommodation and food and beverage services; the restaurant sector; 
the manufacturing industry; and the dough and tortilla industry. In 2021, the second call for 
applications under the programme was published and the following federati ve entities participated: 
Campeche, Chihuahua, Ciudad de México, Estado de México, Guanajuato, Michoacán, Morelos, 
Puebla, Quintana Roo, Tabasco and Tamaulipas. In November 2021, authorization was given for the 
programme to be extended until 31 March 2022,  in view of the economic situation resulting from 
the health emergency. On 3 February 2022, a third call for applications was published, in which the 
Secretariats of Economic Development or their equivalent in the federative entities of the country 
were in vited to participate in the Emergency Programme for Economic Recovery UDP -FOCIR, to 
combine efforts on a 1:1 (one to one) ratio between the state governments and the federal 
government . The resources will be channelled in order to grant financing of up to MXN 250,000 to 
formal MSMEs which have between one and 50 employees, and which are engaged in production 
activities with the potential to contribute to the economic recovery of the State. In 
February  2022,  896 loans totalling MXN 55.48 million from federal  resources were granted.  
1.16.   Another initiative to assist MSMEs was the introduction of the Solidarity Market ( Mercado 
Solidario ), which is a government platform providing a virtual space where micro, small and 
medium -sized enterprises can find local markets i n which to carry out transactions, outside the 
platform, with potential consumers of their products and services. This project is part of the 
interministerial response of the Mexican Government to the health and economic emergency.12 The 
government also in troduced a loan scheme (CRÉDITOS FONACOT) through the National Fund for 
Workers' Consumption (FONACOT), to support consumption during the health emergency. The loan, 
which amounts to MXN 10,000, will be paid in 33 monthly instalments with a grace period of  
three  months. The total annual cost of the loan is 10%. Beneficiaries must have worked for at least 
one year, on an indefinite -term or permanent contract, in the same enterprise or place of work, 
which must be affiliated with FONACOT.13 
1.17.   The FOVISSSTE (Hou sing Fund of the Social Security and Social Services Institute for State 
Workers) loan scheme has granted targeted assistance to workers employed in the service of the 
State and their families during the COVID -19 health emergency. The release of financing is part of 
the COVID -19 Emergency Economic Plan approved by FOVISSSTE, which, inter alia , provides for the 
suspension, until further notice, of the deadlines established for borrowers to choose their home and 
sign the property deed. The plan includes credi t transaction payments to beneficiaries with financing, 
and for providers, as well as a guarantee for the continuity of the origination and formalization of 
loans, the validation of appraisals and the release of new financing. The support was allocated by 
means of a draw. In order to participate, it is necessary to be a government worker, or a retiree or 
pensioner registered with the Social Security and Services Institute for Government Workers 
(ISSSTE), and to have no existing personal loans, or any debts with ISSSTE in this regard. The 
support consists of an 18% increase in the amount of the ordinary loans issued by ISSSTE, with an 
interest rate lowered by 1.5%.14 A programme entitled Construyes Tu Casa  (Build Your House), 
which is a credit line enabling b eneficiaries to build a home to meet their needs, was also 
implemented. Under this scheme, loans of up to MXN 1,133,000 are granted, with an annual interest 
rate of between 4% and 6% and a time frame of one year to complete the property.  
1.18.   Other measures imp lemented include the partial or total deferral of capital and interest 
payments with the support of the National Banking and Securities Commission for loans classified 
as current at 28 February 2020. This support applies to mortgage -backed housing loans, r evolving 
and non -revolving credit for natural persons, such as: car loans, personal loans, payroll loans, credit 
card loans and microcredit; and trade credits for legal or natural persons engaged in different types 
of business activity, including agricultu re. The support, which consists of freezing payments with no 
interest charges, was granted for up to four months, with the possibility of an extension for 
 
12 Government of Mexico, COVID -19 Medidas Económicas. Acciones y Programas. Mercado Solidario.  
Viewed at: https://www.gob.mx/covid19medidaseconomicas/acciones -y-programas/mercado -solidario . 
13 Information from the Government of Mexico. Viewed at: 
https://www.gob.mx/covid19medidaseconomicas/acciones -y-programas/creditos -fonacot . 
14 Information from FOVISSSTE. Viewed at: https://www.gob.mx/fovissste/articulos/libera -fovissste -20-
000-creditos -mas-en-beneficio -de-los-trabajadores -de-la-economia -y-del-sector -vivienda -241018 . WT/TPR/S/429 • Mexico  
 
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  two additional months, for the total amount payable including incidentals.15 Furthermore, the 
Ministr y of Finance and Public Credit (SHCP) extended the deadline for the declaration of natural 
persons under the Law on Income Tax (ISR) until 30 June 2020. The Bank of Mexico (Banxico) also 
introduced a series of liquidity and credit support measures (see bel ow). 
1.2  Recent Economic Developments  
1.2.1   Real sector  
1.19.   During the period 2017 -21, Mexico's real GDP grew at a real average annual rate of 
barely  0.2%. Excluding 2017, the period saw a real average annual decrease of -0.46%. This result 
was greatly influenced by the  effects of the COVID -19 pandemic, which caused  GDP to contract  
by 8.2% in 2020. This contraction was one of the greatest in history and came on the back of an 
already depressed economy in 2019. In spite of this, Mexico's nominal per capita income remained  
around USD 10,000 throughout most of the review period.  
1.20.   During the period between 2016 and 2018, economic growth in Mexico continued to be driven 
mainly by domestic demand, in particular private consumption, as growth in gross capital formation 
was weak, and public spending remained tightly controlled. The sharp decline in economic growth 
experienced from mid -2018, which led to a slight contraction in real GDP in 2019, was partly due to 
weak domestic demand, in particular the steep drop in gross capi tal formation, a contraction in 
public spending, and a slowdown in private consumption, which was only partially offset by a positive 
contribution from net exports.  
1.21.   In 2020, the Mexican economy contracted by 8.2%, as a result of the negative impact of 
the COVID -19 pandemic on production, consumption and employment.16 The pandemic had a strong 
adverse effect on domestic demand, particularly on gross capital formation and private consumption, 
as government spending increased modestly in real terms. Net export s made a positive contribution 
to GDP, as imports fell at a faster rate than exports.  
1.22.   In 2021, the Mexican economy rebounded, with GDP growth of around 4.8%, despite a 
stagnation of GDP in the fourth quarter following a contraction in the third quarter, co mpared with 
the second quarter. In the fourth quarter of 2021, services contracted while manufacturing exports 
and oil exports rebounded as a result of an increase in sales of products other than crude oil. The 
value of imports continued to grow, with incr eases recorded in imports of consumer, intermediate 
and capital goods.17 
1.23.   Regarding growth prospects, as a result of relatively weak growth in the fourth quarter 
of 2021, which led to a lower base for growth for 2022, Banxico downgraded its growth forecast 
ranges for economic activity in 2022 and 2023. The Bank of Mexico expects Mexico's GDP to grow 
by between 1.6% and 3.2% in 2022, with a point estimate of 2.4%.18 GDP growth of between 1.9% 
and 3.9% is expected for 2023, with a point estimate of 2.9%. It is  expected that, during the course 
of 2022, economic activity will return to a path of gradual growth, supported by both external and 
domestic demand. However, the performance of Mexico's economy will continue to be shaped by 
the evolution of the pandemic. Banxico projects that, if GDP in 2022 grows at a rate close to the 
upper end of the estimated range, in the third quarter of 2022, economic activity will return to the 
level observed at the end of 2019. If the growth rate is close to the point estimate for  2022, this 
recovery will occur around the fourth quarter of the year, and if it is close to the lower end of the 
 
15 National Banking and Securities Commission (CNBV), Diferimiento parcial o total de pagos de capital 
y/o intereses hasta por 4 meses.  Viewed at: https://iprofi.com.mx/bancos -mexicanos -diferir -pagos -e-
intereses . 
16 Bank of Mexico (2021), Compilación de Informes Trimestrales correspondientes al año 2020. Viewed  
at: https://www.banxico.org.mx/publicaciones -y-prensa/informes -anuales/%7B5C76A1AD -7080-9B9B -B2E7-
2D97BFDD5B34%7D.pdf . 
17 Bank of Mexico (2022), Resumen Ejecutivo del Informe  Trimestral, octubre -diciembre 2021 . Viewed 
at: https://www.banxico.org.m x/publicaciones -y-prensa/informes -trimestrales/%7BFA4C74D3 -AE21-FDAD -
8A49-989F1F44F671%7D.pdf . 
18 Bank of Mexico (2022), Informe Trimestral, octubre -diciembre 2021. Viewed at:  
https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/%7B9CE4F0BD -2CE1-0A7C -
9A88-7FBFC2411A53%7D.pdf . WT/TPR/S/429 • Mexico  
 
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  estimated range, the level observed at the end of 2019 will be achieved in the second quarter 
of 2023.19 
1.24.   Private consumption grew faster than GDP every year in the review period, with the exception 
of 2020, when it contracted even more than GDP, by around 10.5% (Table 1.2). After recovering 
in 2016, growth in private consumption sharply declined between 2017 and 2019, in line with GDP 
growt h. Household consumption continued to be buoyed by the positive trends in employment, with 
a relatively low unemployment rate (although under -employment remained high), developments in 
real wages, and facilitated access to credit. In 2020, levels of privat e consumption plummeted due 
to the interruption in economic activity caused by the pandemic, as well as the reduced willingness 
of the population to spend and its preference to save due to economic uncertainty. The domestic 
savings rate increased from 17.4 % of GDP in the first quarter of 2020 to 25.4% in the third quarter, 
and 24.4% in the fourth quarter, before declining in 2021, accounting for 21.3% of GDP in the 
fourth  quarter of 2021. In line with the reduction in spending levels and the increase in dis posable 
income, private consumption expenditure increased by 7.4% in 2021, well above the increase in 
real GDP (4.8%).20 Despite the rebound, at the end of 2021, private consumption was below the 
level recorded in February 2020. Although the consumption of  goods continued to increase and was 
above the levels observed prior to the pandemic, the consumption of services remained very low. 
Family remittances continued to be a major source of financing for consumption, 
totalling  USD 51,586  million or 4% of GDP i n 2021.  
Table 1.2 Structure of GDP by expenditure, 2016 -21 
 2016  2017  2018a 2019a 2020a 2021a 
As a percentage of current GDP  
Private consumption  65.5 65.2 64.8 64.9 63.0 64.5 
Government consumption  12.0 11.6 11.6 11.4 12.5 11.8 
Gross fixed capital formation  22.8 22.1 22.0 20.6 18.9 19.8 
Changes in inventory  0.8 0.8 0.7 0.6 0.2 0.4 
Exports of goods and services  37.0 37.7 39.3 38.8 39.5 40.3 
Imports of goods and services  39.0 39.5 41.3 39.1 37.5 41.8 
Statistical discrepancy  0.8 2.1 3.0 2.8 3.1 4.8 
Real growth rate (based on 2013 prices)  
Private consumption  3.7 3.2 2.6 0.4 -10.5 7.4 
Government consumption  2.6 0.7 2.9 -1.8 0.1 1.0 
Gross fixed capital formation  0.8 -1.2 0.8 -4.7 -17.8 10.0 
Changes in inventory  -6.3 -2.3 -8.9 -22.6 -76.0 150.4  
Exports of goods and services  3.6 4.2 6.0 1.5 -7.3 6.9 
Imports of goods and services  2.9 6.4 6.4 -0.7 -13.7 13.7 
Statistical discrepancy  n.a. n.a. 47.8 13.0 48.9 -1.8 
n.a. Not applicable . 
a Preliminary figures.  
Source:  National Institute of Statistics and Geography (INEGI).  
1.25.   Gross fixed capital formation contracted in real terms during the period under review, with a 
cumulative decline of 5.1% between 2017 and 2019, followed by a  significant contraction of 17.8% 
in 2020. Even though private investment picked up in 2021, with an increase of 11.2%, at the end 
of 2021, it was almost 4% below the level recorded in February 2020. This result reflects in particular 
the low share of inve stment in construction, which, in December 2021, was still 7.8% below the 
level observed before the pandemic, while the share in machinery and equipment recovered and, in 
December, was above the pre -pandemic level, in line with the seasonally adjusted seri es of the 
monthly indicator of gross fixed investment. Exports grew at a real average annual rate of 2% in 
the period 2017 to 2021, which was similar to the rate for imports of goods and services. 
Both exports and imports contracted significantly during th e pandemic, and rebounded in 2021 . 
 
19 Bank of Mexico (2022), Informe Trimestral, octubre -diciembre 2021 . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/%7B9CE4F0BD -2CE1-0A7C -9A88-
7FBFC2411A53%7D.pdf . 
20 Bank of Mexico (2022), Informe Trimestral, octubre -diciembre 2021 . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/%7B9CE4F0BD -2CE1-0A7C -9A88-
7FBFC2411A53%7D.pdf . WT/TPR/S/429 • Mexico  
 
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  1.2.2   Fiscal policy  
1.26.   The Ministry of Finance and Public Credit is responsible for fiscal policy. The Federal Budget 
and Treasury Accountability Law and its amendments, the most recent being of 27 February 2022, 
is the most impor tant fiscal legislation.21 This Law requires the Federal Executive to submit a draft 
Revenue Law and a draft Expenditure Budget for approval by Congress each year. The Federal 
Budget and Treasury Accountability Law contains provisions on fiscal discipline and defines 
budgetary balance as the key objective of the public sector. In exceptional circumstances the 
Ministry of Finance and Public Credit can put forward a budget that is in deficit. However, in such 
cases the Ministry must inform Congress of the spe cific amount of funding needed to cover the deficit 
with the corresponding justifications, and specify the actions and number of fiscal years needed to 
restore the fiscal balance. Overall, the projected revenue and expenditure amounts contained in the 
draft and the Expenditure Budget are expected to help achieve the annual target for the public -sector 
borrowing requirement (PSBR). At the close of the financial year, any deviation from the PSBR target 
of more than the equivalent of 2% of the total approved n et expenditure must be justified by the 
Ministry of Finance and Public Credit in the last quarterly report of the financial year. Investment 
expenditure by Petróleos Mexicanos (PEMEX), and its subsidiary production enterprises is not taken 
into account in balancing the budget.  
1.27.   The Federal Budget and Treasury Accountability Law requires the estimated amount of oil 
revenues to be included in each Revenue and Expenditure Budget Law. Should oil revenues decline 
owing to a fall in oil prices during the financial  year, stabilization funds may be drawn down; but 
when these run out, expenditure cuts must be made. Adjustment mechanisms are also contained in 
the Federal Budget and Treasury Accountability Law.  
1.28.   The Federal Budget and Treasury Accountability Law was amen ded a number of times during 
the review period. The amendment of November 2019 was introduced through the Federal Law on 
Republican Austerity.22 The purpose of this Law is to regulate the austerity measures to be observed 
in the exercise of federal public spending and contribute to the sound management of public 
resources. Its provisions apply to all departments, entities, bodies and other agencies comprising 
the Federal Public Administration.23 The objectives of the Law include establishing republican 
austerity as a fundamental value and guiding principle of the Mexican public service; determining 
the basis for the application of such policy; and establishing measures to generate savings in public 
spending in order to direct resources to meet general needs.  It is the responsibility of each public 
body to comply with the Law. The Ministry of Public Administration of the Federal Executive and 
Ministry of Finance and Public Credit have the authority to interpret the Law. The austerity measures 
of the Federal Law on Republican Austerity should preferably target non -priority current expenditure, 
and avoid reducing investment in responding to emergencies and natural or human -caused 
disasters. The Law provides that in the acquisition of movable and immovable prope rty, its lease or 
the procurement of services and public works, the highest level of economy, efficiency and 
functionality must be sought, in accordance with the principles of austerity. Procurement, leasing 
and services must, as a general rule and as a ma tter of priority, be awarded through public tenders, 
and exceptions to this rule must be fully justified. The Ministries of Finance and Public Credit and of 
Public Administration, in their respective areas of competence, shall issue guidelines for the 
procurement of goods and services for general use by public bodies, on a consolidated basis, to 
achieve optimum prices, quality and timeliness. Public bodies shall adjust their organizational and 
employment structures in accordance with the principles of ratio nality and republican austerity, 
thereby eliminating duplication.  
1.29.   The Law contains a raft of austerity measures: it prohibits the purchase or lease of luxury 
vehicles or vehicles the commercial value of which exceeds 4,343 current daily Units of Measure an d 
 
21 The most recent amendment was published in the Official Journal of 30  December  2015.  
22 Decree issuing the Federal Law on Republican Austerity, and amending and adding various provisions 
of the General Administrative Accountability Law and the Federal Budget and Treasury Accountability Law 
(Official Journal of 19 November 2019).  
23 In the absence of any express provision in th is Law, the Federal Budget and Treasury Accountability 
Law, the Law on Government Procurement, Leases and Services, the Law on Public Works and Related 
Services, the Law on the Organization of the Federal Public Administration, the Federal Law on Administr ative 
Procedures, and the General Administrative Accountability Law, in that order, shall be applied on a 
supplementary basis and where appropriate (Article 2 of the Federal Law on Republican Austerity).  WT/TPR/S/429 • Mexico  
 
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  Update for the transport and transfer of public servants.24 It also prohibits unnecessary office 
expenses. Furthermore, the Law prohibits the constitution or execution of trusts or mandates in the 
areas of health, education, law enforcement, social secur ity and public security without prior 
authorization from the Ministry of Finance and Public Credit. All trusts, funds, mandates or similar 
contracts in receipt of public resources in the Centralized Federal Public Administration, without 
exception, must be  constituted by the Ministry of Finance and Public Credit and report on a quarterly 
basis. The Law provides for the creation of an Evaluation Committee to promote and evaluate the 
austerity policies and measures of public bodies.  
1.30.   In 2020, the Federal Budge t and Treasury Accountability Law was amended in order to 
implement support measures in response to the COVID -19 pandemic and other emergency 
situations. The Ministry of Finance and Public Credit may authorize expenditure beyond that 
approved in the Expend iture Budget, using any surpluses resulting from the revenues authorized in 
the Revenue Law or from surpluses in the bodies' own revenue. It also stipulates that the draft 
Expenditure Budget shall include provisions for carrying out preventive actions or e xecuting 
programmes and projects to deal with damage caused by natural phenomena. It further provides 
that 20% of transfers made from the Mexican Petroleum Fund for research on hydrocarbons and 
energy sustainability be used, through the Ministry of Energy,  to support research activities carried 
out by the National Hydrocarbons Commission to identify areas with hydrocarbon potential, and to 
support scientific research, technological development and innovation projects in the exploration, 
extraction and refin ing of hydrocarbons, and petrochemicals production; 15% for research activities 
of the Mexican Petroleum Institute; and 65% to finance projects on renewable energy sources, 
energy efficiency, the use of clean technologies and the diversification of primary  energy sources.25 
1.31.   The federal government introduced a number of fiscal measures to attenuate  the health and 
economic effects of the COVID -19 pandemic, which can be classified into three main groups: 
(a) prevention and response to the health emergency; (b) support for Mexican households and 
businesses, particularly those in vulnerable sections of the population; and (c) support for states 
and municipalities. Banxico initially estimated the total amount of these measures to 
be MXN 242,000 million or 1% of GDP. Resources allocated to the health sector accounted for 0.16% 
of GDP; support to households  and businesses 0.76%; and the advance of federal transfers to states 
and municipalities 0.08%.26 A more recent IMF estimate takes the total amount of these measures 
to MXN 498,955 million or 2% of GDP. Resources to the health sector accounted for 0.45% of  GDP; 
support to households and businesses 0.21%; and measures to stimulate the liquidity of the 
economy 1.25%.27 
1.32.   Cuts in non -priority expenditure were also introduced to avoid excessive public spending 
increases. The Decree establishing austerity measures  to be observed by federal government 
departments and bodies using criteria indicated therein, establishes: a progressive reduction in the 
salaries of senior public officials by up to 25%; that 75% of the available budget for general services 
 
24 The Unit of Measure and Update (UMA) is a unit of account calculated by the National Institute of 
Statistics and Geography, which issues the daily, monthly and annual value of the unit. The daily value of 
the UMA as of 1 February 2022 was MXN 96.22, the monthly value was MXN 2,925.09 and the annual value 
was MXN 35,101.08 (Official Journal of 10 January 2022). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5640427&fecha=10/01/2022#:~:text=Con%20base% 20en
%20lo%20anterior,partir%20del%201%C2%BA%20de%20febrero . 
25 Decree amending and repealing various provisions of the Law for the Protection of Human Rights 
Defenders and Journalists; Law on International Cooperation for Development; Hydrocarbons Law; Law on the 
Electricity Industry; Federal Budget and Treasury Accountability Law; General Law on Civil Protection; Organic 
Law of the National Agricultural, Rural, Forestry and Fisheries Development Bank; Law on Science and 
Technology; Customs Law; Law Regulati ng the Railway Service; General Law on General Physical Exercise and 
Sport; Federal Law on the Film Industry; Federal Law on Duty; Law on the Mexican Petroleum Fund for 
Stabilization and Development; Law on Biosafety of Genetically Modified Organisms; Gene ral Law on Climate 
Change; General Law on Victims and repeal of the Law creating the trust for the administration of the Social 
Support Fund for Former Mexican Migrant Workers (Official Journal of 6 November 2020). Viewed at: 
https://www.diputados.gob.mx/LeyesBiblio/ref/lfprh.htm . 
26 Bank of Mexico, Políticas Económicas Consideradas en México para Enfrentar el Panorama Adverso 
Generado por la Pandemia de COVID -19. Extracto del Informe Tri mestral Enero - Marzo 2020, Recuadro 7, 
pp. 81-85, mayo 2020 . Viewed at: https://www.banxico.org.mx/publicacion es-y-prensa/informes -
trimestrales/recuadros/%7B455A13D4 -524F-84CE-704E-8045ED092A0C%7D.pdf . 
27 IMF (2021), Fiscal Monitor Database of Country Fiscal Measures in Response to the COVID -19 
Pandemic . IMF Fiscal Affairs Department, October. Viewed at : https://www.imf.org/en/Topics/imf -and-
covid19/Fiscal -Policies -Database -in-Response -to-COVID -19. WT/TPR/S/429 • Mexico  
 
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  and materials  and supplies not be used; and that government actions and spending be postponed, 
with the exception of priority programmes.28 The measures remained in force 
until 31 December  2020.  
1.33.   Mexican federal government finances improved between 2018 and 2019, which saw a primary 
surplus and a deficit of around 2% of GDP. Efforts were made to reduce the deficit by means of the 
Federal Law on Republican Austerity. However, due to the pandemic -induced economic recession, 
revenue collection suffered and spending increase d, albeit modestly, to mitigate the effects of the 
COVID -19 pandemic on the most vulnerable segments of the population. The federal government 
deficit stood at 2.5% and 3.1% of GDP in 2020 and 2021, respectively, while the primary deficit was 
0.1% and 1.1%  of GDP, respectively (Table 1.3).  
Table 1.3 Balance of the federal government , 2016 -21 
(Percentage of GDP)  
 2016  2017  2018  2019a 2020a 2021a 
Total expenditure  20.8 18.5 18.6 18.4 20.0 19.6 
 Programmable expenditureb 15.4 13.0 12.7 12.6 13.9 14.1 
 Current expenditure  5.0 4.7 4.7 4.4 4.8 4.5 
 Personal servicesc 4.0 3.7 3.7 3.6 3.9 3.7 
 Materials and supplies  0.1 0.1 0.1 0.1 0.1 0.1 
 General and other services  0.9 0.8 0.9 0.8 0.7 0.7 
 Capital expenditure  2.8 1.4 0.9 1.0 0.9 1.8 
 Physical investment  0.6 0.4 0.5 0.4 0.5 0.4 
 Movable and immovable property  0.1 0.1 0.0 0.0 0.0 0.0 
 Public works  0.4 0.3 0.2 0.2 0.2 0.1 
 Other outgoings  0.1 0.1 0.2 0.1 0.3 0.2 
 Financial investment  2.2 0.9 0.5 0.6 0.5 1.4 
 Subsidies and transfers  7.6 7.0 7.1 7.2 8.2 7.8 
 Currentd 6.2 5.8 5.9 6.2 6.9 6.7 
 Capital  1.4 1.2 1.2 1.0 1.3 1.1 
 Non-programmable expenditure  5.4 5.5 5.9 5.8 6.1 5.5 
 Shareholdings  3.4 3.5 3.6 3.6 3.6 3.5 
 Arrears from prior fiscal years ( Adefas ), othere 0.1 0.1 0.3 0.1 0.1 0.0 
 Of current expenditure  0.1 0.1 0.1 0.0 0.0 0.0 
 Of capital expenditure  0.1 0.0 0.2 0.0 0.0 0.0 
 Other  0.0 0.0 0.0 0.0 0.0 0.0 
 Financial cost  1.8 1.9 2.0 2.2 2.4 2.0 
 Internal  1.5 1.6 1.7 1.8 2.0 1.7 
 External  0.4 0.3 0.3 0.3 0.4 0.3 
Total revenue  17.7 17.5 16.5 16.4 17.5 16.4 
 Tax 13.5 13.0 13.0 13.1 14.3 13.6 
 Income tax (ISR)  7.1 7.2 7.1 6.9 7.5 7.2 
 Flat-rate business tax (IETU)  0.0 0.0 0.0 0.0 0.0 0.0 
 Tax on cash deposits (IDE)  0.0 0.0 0.0 0.0 0.0 0.0 
 Income tax levied on contractors and allocation 
 holders  0.0 0.0 0.0 0.0 0.0 0.0 
 VAT 3.9 3.7 3.9 3.8 4.2 4.3 
 Special tax on production and services (IEPS)  2.0 1.7 1.5 1.9 2.0 1.5 
 IEPS gasoline and diesel  1.4 1.0 0.8 1.2 1.3 0.8 
 IEPS other than gasoline and diesel  0.7 0.7 0.7 0.7 0.7 0.7 
 Foreign trade taxes  0.3 0.2 0.3 0.3 0.2 0.3 
 Imports  0.3 0.2 0.3 0.3 0.2 0.3 
 Exports  0.0 0.0 0.0 0.0 0.0 0.0 
 Oil revenues tax (IRP)f 0.0 0.0 0.0 0.0 0.0 0.0 
 Tax on hydrocarbon exploration and extraction 
 activities (IAEEH)g 0.0 0.0 0.0 0.0 0.0 0.0 
 Otherh 0.2 0.2 0.2 0.2 0.3 0.3 
 Non-tax 4.2 4.5 3.4 3.3 3.2 2.9 
 Transfers from the Mexican Petroleum Fund for 
 Stabilization and Development (FMPED)i 1.5 2.0 2.3 1.8 0.8 1.4 
 Duties  0.3 0.3 0.3 0.3 0.3 0.3 
 Hydrocarbons  0.0 0.0 0.0 0.0 0.0 0.0 
 Other  0.3 0.3 0.3 0.3 0.3 0.3 
 Fees ( productos ) 0.0 0.0 0.0 0.0 0.0 0.0 
 Other revenue ( aprovechamientos ) 2.4 2.2 0.8 1.1 2.0 1.1 
 Accessories  0.0 0.0 0.0 0.0 0.0 0.0 
 
28 Decree establishing austerity measures to be observed by federal govern ment departments and 
bodies using criteria indicated therein.  WT/TPR/S/429 • Mexico  
 
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   2016  2017  2018  2019a 2020a 2021a 
Economic balance  -3.0 -1.0 -2.1 -2.0 -2.5 -3.1 
Primary balance  -1.2 0.8 -0.1 0.1 -0.1 -1.1 
Federal government primary expenditure  18.9 16.7 16.6 16.3 17.6 17.6 
a Preliminary figures.  
b The programmable expenditure of the federal government corresponds to the certified accounts 
payable (CLC) and agreements for the disbursement of funds paid by the Treasury. Therefore, it 
may differ from actual expe nditure, which is measured on the basis of the CLCs submitted to the 
Treasury and does not include the disbursement agreements, which are settled through the CLCs in 
the ensuing months. For autonomous bodies, the figures reflect those reported as paid expe nditure 
through the Integrated Public Revenue and Expenditure Information System.  
c Includes spending by departments, together with federal contributions for federal bodies and 
municipalities, and transfers granted to bodies under indirect budgetary contro l for the payment of 
personal services.  
d  Excludes transfers granted for the payment of personal services.  
e  Includes arrears from prior fiscal years ( Adefas ) and net expenditure incurred by the federal 
government on behalf of third parties (non -budgetar y accounts).  
f  Oil revenues tax.  
g Tax on hydrocarbon exploration and exploitation activities.  
h Includes taxes on new motor vehicles, export taxes, taxes not included in the above items and 
accessories.  
i Mexican Petroleum Fund for Stabilization and Development.  
Note:  In the balance, ( -) represents deficit and (+) surplus.  
Source:  Bank of Mexico, Economic Information System (SIE) database.  
1.34.   The overall public sector deficit increased in 2020 and 2021, to 2.9% of GDP in both years 
(Table 1.4). This reflects an increase in spending from 23.7% of GDP in 2019 to 25.7% in both 2020 
and 2021. The increased spending was largely attributable to pandemic support programmes, 
resulting in a rise in current spending and in grants and transfers. Al though the share of budget 
revenues in GDP increased in 2020, this mainly reflects the fact that revenues contracted by less 
than GDP.  
Table 1.4 Public sector budgetary expenditure and revenue, 2016 -21 
(Percentage of GDP)  
 2016  2017  2018  2019a 2020a 2021a 
Budgetary expenditure  26.6 23.6 23.8 23.7 25.6 25.6 
 Programmable expenditure  20.7 17.6 17.3 17.3 19.0 19.5 
 Current expenditure  11.2 10.9 11.3 11.2 12.1 11.7 
 Personal servicesb 5.5 5.2 5.2 5.0 5.5 5.1 
 Materials and supplies  1.2 1.4 1.6 1.5 1.4 1.5 
 Otherc 4.5 4.3 4.6 4.7 5.2 5.1 
 Capital expenditure  4.5 2.4 1.9 2.0 2.1 3.4 
 Direct physical investment  2.3 1.5 1.5 1.3 1.5 1.6 
 Other direct capital expenditure  2.2 0.9 0.4 0.7 0.6 1.8 
 Subsidies and transfers  5.0 4.3 4.2 4.1 4.7 4.4 
 Current  3.6 3.1 2.9 3.1 3.5 3.4 
 Capital  1.4 1.2 1.2 1.0 1.3 1.1 
 Non-programmable expenditure  5.9 6.0 6.5 6.4 6.6 6.1 
 Shareholdings  3.4 3.5 3.6 3.6 3.6 3.5 
 Arrears from prior fiscal years ( Adefas ), other  0.1 0.1 0.3 0.1 0.1 0.0 
 Financial cost  2.3 2.4 2.6 2.7 2.9 2.6 
 Internal  1.6 1.7 1.8 1.9 2.0 1.8 
 External  0.7 0.7 0.8 0.8 0.9 0.9 
Budgetary revenue  24.1 22.6 21.7 22.0 22.8 22.7 
 Total federal govern ment revenue  17.7 17.5 16.5 16.4 17.5 16.4 
 Tax 13.5 13.0 13.0 13.1 14.3 13.6 
 Non-tax 4.2 4.5 3.4 3.3 3.2 2.9 
 Organizations and firms  6.3 5.1 5.3 5.6 5.3 6.3 
 Total revenue  8.9 7.8 8.2 8.7 8.8 9.6 
 Subsidies and transfersd 2.6 2.7 2.9 3.1 3.5 3.3 
Public sector balance  -2.5 -1.1 -2.1 -1.6 -2.9 -2.9 
 Budgetary balance  -2.5 -1.1 -2.0 -1.7 -2.8 -2.9 
Entities under indirect budgetary controle 0.0 0.0 -0.1 0.1 -0.1 0.1 
 Non-budgetary balance  0.0 0.0 0.0 0.0 0.0 0.1 
 Differences with financing sources  0.0 0.0 -0.1 0.0 -0.1 0.0 
Primary balance  -0.1 1.4 0.6 1.1 0.1 -0.3 
 Primary balance, budgetary  -0.1 1.4 0.6 1.1 0.1 -0.3 WT/TPR/S/429 • Mexico  
 
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   2016  2017  2018  2019a 2020a 2021a 
 Primary balance, entities under indirect 
 budgetary control  0.0 0.0 0.0 0.0 0.0 0.1 
Budgetary primary expenditure  24.2 21.2 21.1 21.0 22.7 23.0 
a Preliminary figures.  
b Includes budgetary spending by departments and bodies, together with federal contributions for 
federal bodies and municipalities, and transfers granted to bodies under indirect budgetary control 
for the payment of personal se rvices.  
c Includes expenditure on general services and other current expenditure.  
d Grants and transfers to agencies and enterprises under direct budgetary control.  
e Entities under indirect budgetary control.  
Source:  Ministry of Finance and Public Credit, Government Finance and Budget.  
1.35.   Total public sector net debt totalled MXN 12,145.67 million in December 2021, equivalent 
to 46.3% of GDP. External public debt stood at MXN 4,493.83 million in the same period (17.1% 
of GDP), while domestic public deb t totalled MXN 7,652.83 million (26.2% of GDP).29 The 
government has laid emphasis on a conservative fiscal stance aimed at containing debt. The gross 
debt of the public sector (as defined by the IMF) is estimated to be at around 60% of GDP.30 
1.2.3   Monetary and  exchange -rate policy  
1.36.   The prime objective of the Bank of Mexico (Banxico), which is responsible for formulating, 
implementing and supervising monetary policy, is to maintain stability in the purchasing power of 
the local currency, in accordance with Articl e 28 of the Constitution. Banxico is governed by the Law 
on the Bank of Mexico. Under Article 51 of this Law, in the month of January each year, Banxico 
must send to the Federal Executive and Congress a document setting out the monetary policy to be 
pursue d in the year ahead. Since 2014, Banxico has also been required to submit to the Federal 
Executive and Congress, no later than 45 business days after the end of each quarter, a report on 
inflation, economic trends, and the behaviour of the country's econom ic indicators in the quarter in 
question, and on the implementation of monetary policy for the quarter.  
1.37.   Since 2001, Banxico has been operating an inflation  targeting scheme to provide  a framework 
for the implementation of monetary policy. Banxico's permanent target  is to reach  an annual inflation 
rate of 3%, plus or minus 1 percentage point , as measured by the national consumer price index 
(INPC). This target  remained unchanged during the review period. Banxico uses a target for the 
overnight interbank interest rate as its main monetary policy instrument. The conditions under which 
liquidity is supplied to the money market are modified, for example, through open -market 
operations, in or der to situate the interbank funding rate at the desired level. Furthermore, the 
target for the overnight interbank interest rate is adjusted in order for inflation to converge towards 
its target over the monetary policy timeline.31 
1.38.   During the review perio d, as many as four subperiods can be identified in relation to the 
conduct of monetary policy. Between 2016 and the end of 2017, in response to inflationary pressure, 
the Bank of Mexico restricted monetary policy. During this period, there were 11 hikes in  the 
overnight interbank interest rate (target interest rate), which increased by 4 percentage points from 
3.25% to 7.25%.32 In 2018, the Bank of Mexico increased, to a lesser extent, the target interest 
rate. More specifically, the Board of Directors incr eased this rate from 7.25% to 8.25% during the 
year. In 2019, in response to a decrease in inflation as foreseen by the central institution in the 
second half of the year, and weaker economic activity, the Board of Directors initiated a cycle to 
lower the target interest rate, bringing it down to 7.25% in February 2020. Between March 2020 
and February 2021, in light of the impact of the shocks stemming from the pandemic, the Board of 
 
29 Bank of Mexico, Economic Information System (SIE). Viewed at: 
https://www.banxico.org.mx/SieInternet/consultarDirectorioInternetAction.do?accion=consultarCuadro&idCuad
ro=CG7& . 
30 IMF, IMF Executive Board Concludes 2021 Article IV Consultation with Mexico . Press 
Release  No. 21/323, 5 November 2021. Viewed at: 
https://www.imf.org/en/News/Articles/2021/11/05/pr21323 -mexico -imf-executive -board -concludes -2021-
article -iv-consultation -with-mexico . 
31 Interest rate on overnight interbank funding operations.  
32 Bank of Mexico, Anuncios de las decisiones de política monetaria . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/anuncios -de-las-decisiones -de-politica -
monetaria/anuncios -politica -monetaria -t.html . WT/TPR/S/429 • Mexico  
 
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  Directors further reduced its target rate to 4%. Furthermore, in March and  April 2020, the 
central  institution announced the implementation of a series of additional measures with the aim of 
promoting the orderly functioning  of the financial markets, strengthening credit channels and 
providing liquidity for the sound development  of the financial system. June 2021  marked a turning 
point in monetary policy , when economic growth resumed and inflation increased. 
Between  June 2021 and February 2022, Banxico increased the target interest rate six times, bringing 
it up to 6%.  
1.39.   As the ove rnight interbank interest rate is the Bank of Mexico's main monetary policy 
instrument, the development of the monetary base is determined primarily by the demand for 
money. In this regard, the monetary base grew at an average annual rate of 11.4% during t he 
period 2017 -21, with distinct trends observed prior to and during the pandemic. In particular, the 
growth of the monetary base accelerated in 2020 (21.6%) and 2021 (15.2%) compared to previous 
years, owing mainly to an increase in demand for money for p recautionary reasons.33 The monetary 
aggregates M1 and M4 behaved in a similar way (Table 1.5).  
Table 1.5 Main monetary indicators, 2016 -22 Q1  
 2016  2017  2018  2019  2020a 2021a 2022 
Q1a 
Monetary aggregates   
Monetary base, end of period 
(MXN billion)b 1,420  1,546  1,674  1,742  2,118  2,441  2,512  
Monetary base 
(annual  variation,  %) 14.4 8.8 8.3 4.1 21.6 15.2 15.3 
M1 (MXN  billion)  3,868  4,264  4,492  4,702  5,646  6,377  6,352  
M4 (MXN  billion)  10,811  11,712  12,263  13,200  14,420  15,339  15,382  
Interest rates (period average %)   
28-day Cetes (treasury bill) ratec 4.1 6.7 7.6 7.8 5.3 4.4 5.9 
28-day TIIE rate (Interbank 
Equilibrium Interest Rate)d 4.5 7.1 8.0 8.3 5.7 4.6 6.0 
Three -year bond rate (fixed rate)  5.5 7.0 7.8 7.5 5.2 5.8 7.9 
10-year bond rate (fixed rate)  6.2 7.2 7.9 7.8 6.2 6.9 8.1 
20-year bond rate (fixed rate)  6.7 7.5 8.1 7.9 6.9 7.5 8.3 
Inflation (12 -month variation, end of period)   
Inflation target  3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 3.0+/ -1.0 
National consumer price index 
(INPC, end  of period)  92.0 98.3 103.0  105.9  109.3  117.3  120.2  
National consumer price index 
(INPC, annual average)  90.1 95.6 100.3  103.9  107.4  113.5  119.0  
Inflation rate (annual %)  2.8 6.0 4.9 3.6 3.4 5.7 7.3 
Exchange rate   
Exchange rate, end of period 
(MXN/USD)  20.7 19.8 19.7 18.8 19.9 20.6 20.0 
Exchange rate, average 
(MXN/USD)  18.7 18.9 19.2 19.3 21.5 20.3 20.5 
Real effective exchange rate 
based on the consumer price 
index  79.0 80.9 81.0 83.7 77.4 81.9 81.7 
Real effective exchange rate, 
annual variation (%)  -12.9 2.3 0.1 3.3 -7.6 5.9 1.0 
a Preliminary figures.  
b Monetary base consisting of banknotes and coins in circulation and current account deposits held by 
commercial banks at the Bank of Mexico.  
c Tax-exempt rates of return.  
d The Interbank Equilibrium Interest Rate (TIIE) is determined by the Bank of Mexico on the basis of 
quotations submitted by credit institutions, with th e start date being the date of publication in the 
Official Journal. The procedure for calculating this rate is established in Title 3, Chapter IV of 
Circular  No. 3/2012 issued by the Bank of Mexico, and in the Official Journal of 23 March 1995.  
Source:  Bank of Mexico, Economic Information System (SIE), and IMF.  
1.40.   In March and April 2020, in the light of the impact of the shocks stemming from the COVID -19 
pandemic, the Bank of Mexico announced a series of measures aimed at promoting orderly financia l 
 
33 Bank of Mexico (2021),  La Demanda de Billetes y Monedas en México Durante la Pandemia 
de COVID -19. Extracto del Informe Trimestral Abril - Junio 2021, Recuadro 4, pp. 52 -55, August 2020. Viewed 
at: https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/recuadros/%7B709FD59A -
AA0D -D45C -59A3-97D3CEFFB68B%7D.pdf . WT/TPR/S/429 • Mexico  
 
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  market behaviour, strengthening credit channels and providing liquidity for the sound development 
of the financial system (Box 1.1). These measures were implemented in response to the major 
impact on the financial markets, tighter liquidity and the decli ne in the operating conditions of the 
foreign exchange and fixed income markets.34 The measures adopted by the central institution 
included operations authorized under the Law on the Bank of Mexico, and measures to improve the 
functioning of the foreign ex change market in accordance with the decisions of the Foreign Exchange 
Commission. At 25 February 2022, the current committed amount for these measures 
was MXN 112 billion for local currency facilities and USD 7.5 billion for the rest. If maturities and 
refinancing operations are included, the total amounts allocated were MXN 692.2 billion 
and USD 22.7 billion, respectively. On 30 September 2021, the additional measures expired, with 
the exception of those that remain available to the Bank of Mexico indefinitely.35 Furthermore, the 
Board of Directors of the National Banking and Securities Commission (CNBV), to which the Bank of 
Mexico belongs, issued, in March 2020, temporary special accounting criteria, which were applicable 
to loans grante d by credit institutions to households and businesses whose source of income was 
affected by the pandemic. The special accounting criteria included the partial or total deferral of 
capital and/or interest payments for up to four months, with the possibilit y of an extension for 
two additional months, on loans granted under the programme. After the special accounting criteria 
had expired at the end of 2020, the CNBV implemented regulatory incentives to facilitate the 
restructuring of bank loans for households  and businesses that could face problems in the payment 
of their debts. The new facility, to which credit institutions voluntarily adhered, aimed to improve 
the quality of the banking book, by means of greater flexibility for the payment of restructured lo ans. 
Box 1.1 Measures implemented by the Bank of Mexico to address the COVID -19 
pandemic  
Banxico adopted, in total, 15 measures between March and May 2020, which the authorities grouped under 
four main objective s: 
(a) Provide liquidity and re -establish operating conditions in money markets:  
(i) reduce the monetary regulation deposit, which commercial and development banking institutions are 
required to hold at Banxico, by MXN 50 billion, from MXN 320 billion to  MXN 270 billion, thereby releasing 
liquidity to support the activities of commercial and development banks and maintain or extend credit lines. 
Banxico would "sterilize" or offset the monetary impact of this measure.  
(ii) reduce the interest rate for the  Ordinary Additional Liquidity Facility (FLAO) that supplies liquidity to 
commercial banking institutions through secured loans or repos, from between 2 and 2.2 times the target for 
the overnight interbank interest rate to 1.1 times this rate.  
(iii) incre ase liquidity during operating hours to facilitate the functioning of the financial markets and payment 
systems, in order to avoid pressure on the operational target for the implementation of monetary policy and 
the overnight interbank funding rate.  
(iv) extend the securities eligible for the FLAO, foreign exchange hedging operations and credit operations in 
dollars.  
(v) increase the number of counterparties eligible for the FLAO; in particular, access is extended to 
development banking institutions to en able them to obtain liquidity through secured loans or repos.  
(vi) implement a temporary securities swap facility, for up to MXN 100 billion, with the aim of providing 
liquidity for trading instruments whose operability and liquidity on the secondary mark et have declined. 
On 15 September 2020, the size of this facility was decreased by MXN 50 billion. As a result, as from this 
date, the resources available through this facility were reduced to MXN  50 billion.  
(b) Promote orderly behaviour in government and corporate securities markets:  
(i) strengthen the Market Makers Programme for government debt, in collaboration with the Ministry of Finance 
and Public Credit, by means of two changes: the implementation of government securities swaps for ma rket 
makers, to enable them to better manage their securities holdings; and the modification of the call option 
 
34 Bank of Mexico (2020), Políticas Económicas Consideradas en  México para Enfrentar el Panorama 
Adverso Generado por la Pandemia de COVID -19. Extracto del Informe Trimestral Enero - Marzo 2020, 
Recuadro 7, pp. 81 -85, mayo 2020. Viewed at: https://www.banxico.org.mx/publicaciones -y-prensa/informes -
trimestrales/recuadros/%7B455A13D4 -524F-84CE-704E-8045ED092A0C%7D.pdf . 
35 Bank of Mexico (2021), Modificación de la vigencia de las  medidas orientadas a promover un 
comportamiento ordenado de los mercados financieros, fortalecer los canales de otorgamiento de crédito y 
proveer liquidez para el sano desarrollo del sistema financiero, 25 February 2021. Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/miscelaneos/%7B606E5612 -53D1 -90D0 -7993-
B1A76BF714D2%7D.pdf . WT/TPR/S/429 • Mexico  
 
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  rights on government securities of market makers, in order for the call option to be exercised on the second 
banking day following the primary a uction, instead of the first day.  
(ii) implement a facility for repurchases of term government securities, for up to MXN 100 billion, to supply 
liquidity to debt -holding financial institutions. On 15 September 2020, the size of this facility was increased  
by MXN 50 billion. As a result, as of this date, the resources available through this facility increased 
to MXN 150 billion.  
(iii) implement government securities swap operations, for up to MXN 100,000, through which Banxico 
receives long -term securities  (10 years or over) and delivers other securities with maturities of up to 
three  years.  
(iv) implement the Corporate Securities Repurchase Facility (FRTC), for up to MXN 100 billion, in order to 
supply liquidity for short -term corporate bonds and long -term corporate debt, whose operability and liquidity 
on the secondary market has decreased.  
(c) Strengthen credit channels:  
(i) provide resources of up to MXN 250 billion for banking institutions, in order to channel credit to MSMEs 
and individuals affected  by the pandemic. To this end, Banxico was authorized to release resources associated 
with monetary regulation deposits, and to grant financing for terms of between 18 and 24 months to 
commercial and development banking institutions.  
(ii) implement a financing facility of up to MXN 100 billion to commercial banking institutions secured by 
corporate loans, for the financing of MSMEs.  
(d) Promote the orderly functioning  of the foreign exchange market:  
(i) extend the programme on foreign exc hange hedges in dollars to be settled in local currency, 
from USD 20 billion to USD 30 billion.  
(ii) conduct USD credit auctions. Facility financed through the temporary foreign currency swap mechanism 
established with the United States Federal Reserve fo r USD 60 billion.  
(iii) foreign exchange hedges settled by differences in USD with counterparties not domiciled in the country, 
making it possible to operate during the hours when domestic markets are closed.  
In accordance with Banxico, in total, the shares expressed in local currency provided support for the 
functioning of the financial system for up to MXN 800 billion, equivalent to 3.3% of GDP in 2019.  
Source:  Bank of Mexico (2020), Políticas Económicas Consideradas en México para Enfrentar el Pano rama 
Adverso Generado por la Pandemia de COVID -19. Extracto del Informe Trimestral Enero - Marzo 
2020, Recuadro 7, pp. 81 -85, mayo 2020 . Viewed at: https://www.banxico.org.mx/publicaciones -y-
prensa/informes -trimestrales/recuadros/%7B455A13D4 -524F-84CE-704E-8045ED092A0C%7D.pdf ; 
Bank of Mexico (2020), Extensión de la vigencia de las medidas orientadas a promover un 
comportamiento ordenado de los mercados financieros, fortalecer los canales de otorgamiento de 
crédito y proveer liquidez para el sano desarrollo del sistema financiero , 15 September 2020. Viewed 
at: https://www.banxico.org.mx/publicaciones -y-prensa/miscelaneos/%7B510746A8 -3C9B -68A0-
B6C2 -9E83CB110E19%7D.pdf . 
1.41.   During the review period, inflation, measured using the national consumer pric e index (INPC) 
at the end of period, exceeded the inflation target in various periods and, in other periods, was 
within the range of variability. More specifically, the variation of the INPC exceeded the target 
in 2017 (6% annual average) and 2018 (4.9%), and again in 2021 (5.7%), while it remained within 
the range in 2019 (3.6%) and 2020 (3.4%). Inflation accelerated  in the last quarter of 2021, with 
the INPC increasing at an annual rate of 7%. For the first quarter of 2022, annual inflation is forecast 
at 6.9% with a core inflation rate of 6.4%.  
1.42.   In view of the 0.5 percentage point increase in the overnight interbank interest rate in 
February 2022, Banxico stressed that the inflationary pressures in the previous months had been 
greater in magnitude and last ed longer than anticipated (7.07% in January 2022). Consequently, 
the inflation expectations for 2022 and 2023 increased, while the medium -term inflation 
expectations decreased slightly and the long -term expectations remained stable at levels above the 
target. The forecasts for general and core inflation were revised upwards, particularly for 2022 and 
the first quarter of 2023. Banxico considers that, with the revision of the target for the overnight 
interbank interest rate to 6%, the monetary policy stance  is in line with the trajectory required for 
inflation to converge to its target of 3% by around the third quarter of 2023.36 Banxico hopes that 
 
36 Bank of Mexico, Anuncio de Política Moneta ria. Press Release, 10 February 2022. Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/anuncios -de-las-decisiones -de-politica -
monetar ia/%7B33C58779 -7EFB-ACB7 -4BC0 -9B7F2444DE1D%7D.pdf . WT/TPR/S/429 • Mexico  
 
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  the effects of the pandemic on core inflation will fade away over the course of 2022, and that core 
inflation w ill decrease during the remainder of the forecast period, to reach around 3% in the 
second  quarter of 2023. Upside risks for inflation include: (i) persistently -high core inflation; 
(ii) external inflationary pressures associated with the evolution of the pandemic and the measures 
adopted to contain its effects, which may result in higher input or transport costs, and logistics issues 
in global production chains; (iii) greater pressure, resulting from the recent geopolitical conflict, on 
the prices of commo dities, in particular energy, or on the prices of agricultural products; 
(iv) currency depreciation episodes; and (v) cost pressures caused by supply chain disruptions, or 
by higher costs associated with hiring conditions or wages, which could be passed on  to consumer 
prices.37 
1.43.   The Foreign Exchange Commission, which comprises officials from the Ministry of Finance and 
Public Credit (SHCP) and Banxico, is responsible for exchange -rate policy in Mexico. Since the end 
of 1994, Mexico has had a flexible exchang e-rate regime, in which the exchange rate is determined 
freely in the market. However, the Foreign Exchange Commission intervenes in the market by 
holding dollar auctions in situations of volatility, to avoid excessive fluctuation. The 
nominal  MXN/USD exch ange rate remained stable during the review period, with minor fluctuations. 
The real effective exchange rate increased slightly (by 3.7%) between 2017 and 2021, as Mexican 
inflation was a little above that of the country's main trading partners.  
1.2.4   Balance o f payments  
1.44.   The current account of Mexico's balance of payments recorded a modest shortfall throughout 
the 2017 -19 period, but experienced a sizeable surplus in 2020, before slipping back into  deficit, 
albeit a small one , in 2021 (Chart 1.1). Developments in the financial account enabled reserves to 
be accumulated throughout most of the period.  
1.45.   The balance -of-payments current account deficit exceeded USD 20 billion per year in 2016 -18, 
representing between 1.7% and 2.2% of GDP (Table 1.6 and Ch art 1.1). These deficits can be 
explained by the performance of the oil balance, the services balance and the balance of primary 
incomes. However, the surplus of the secondary income account, particularly remittances, continued 
to increase. The COVID -19 pa ndemic caused a sharp contraction in exports and imports of goods 
and services in 2020. However, the decline in imports was greater, and resulted in a surplus in the 
balance -of-payments current account, amounting to USD 26,210 million , or 2.4% of GDP. In 2 021, 
the trade balance posted a deficit of USD 14,491 million (0 .9% of GDP).  
1.46.   The Bank of Mexico estimates that the current trade deficit for 2022 will be 
between  USD 9 billion and USD 15 billion ( -0.6% and -1.1% of GDP). The current account balance 
is proj ected to range between a surplus of USD 1.8 billion and a deficit of USD 8.2 billion (0.1% 
and -0.6% of GDP). For 2023, a trade deficit of between USD 9.8 billion and USD 17.8 billion ( -0.6% 
and -1.2% of GDP) is foreseen, as well as a current account balan ce ranging between a surplus 
of USD 1.9  billion and a deficit of USD 10.1 billion (0.1% and -0.7% of GDP).38 
 
37 Bank of Mexico (2022), Informe Trimestral, Octubre -Diciembre 2021 . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/%7BFA4C74D3 -AE21-FDAD -8A49-
989F1F44F671%7D.pdf . 
38 Bank of Mexico (2022), Informe Trimestral, Octubre -Diciembre 2021 . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/informes -trimestrales/%7BFA4C74D3 -AE21-FDAD -8A49-
989F1F44F671%7D.pdf . WT/TPR/S/429 • Mexico  
 
- 31 - 
 
  Chart 1.1 Current account and financial account of the balance of payments, 2016 -21 
(USD million)  
 
Source:  Bank of Mexico, Economic Information System (SIE) database.  
Table 1.6 Balance of payments, 2016 -21 
(USD million)  
 2016  2017  2018  2019  2020a 2021a 
Current account as % of GDP  -2.2 -1.7 -2.0 -0.3 2.4 -0.4 
Current account  -24,140  -20,028  -24,326  -3,471  26,210  -4,866  
 I. Credit  434,524  479,228  527,649  544,475  484,530  583,613  
 A. Goods  374,311  409,806  451,082  460,939  417,151  494,550  
 Merchandise exports  373,954  409,433  450,713  460,604  416,999  494,225  
 Goods procured in ports by carriers  357 374 370 336 152 325 
 B. Services  24,213  27,595  29,028  31,717  17,037  27,257  
 C. Primary income  7,919  10,485  13,013  14,530  9,301  9,755  
 Profits and dividends  2,981  4,765  5,228  6,091  5,082  5,870  
 Profits  1,823  3,191  4,451  5,240  4,562  4,246  
 Dividends  1,158  1,574  778 852 520 1,624  
 Interest  3,237  3,736  5,686  5,849  1,941  1,335  
 Compensation of employees  1,698  1,980  2,091  2,583  2,274  2,544  
 Other  4 4 7 6 5 5 
 D. Secondary income  28,081  31,341  34,526  37,288  41,041  52,051  
 Remittances  26,993  30,291  33,677  36,439  40,605  51,586  
 Other  1,088  1,050  849 849 436 466 
 II. Debit  458,664  499,256  551,976  547,945  458,320  588,479  
 A. Goods  387,392  420,790  464,850  455,772  383,172  506,017  
 Merchandise imports  387,088  420,395  464,302  455,242  382,986  505,716  
 Goods procured in ports by carriers  304 395 547 530 186 302 
 B. Services  33,047  37,074  39,969  39,794  28,264  38,670  
 C. Primary income  37,239  40,194  46,048  51,298  45,917  42,667  
 Profits and dividends  17,331  18,920  23,191  25,078  21,792  20,259  
 Profits  10,652  11,955  13,281  18,097  16,081  12,213  
 Dividends  6,679  6,965  9,911  6,980  5,711  8,046  
 Interest  19,902  21,263  22,845  26,207  24,111  22,405  
 Public sector  12,843  13,151  13,168  14,254  13,234  13,697  
 Private sector  7,059  8,112  9,677  11,952  10,877  8,708  
 Other  5 11 12 14 13 4 
 D. Secondary income  987 1,198  1,109  1,081  967 1,125  
 Remittances  654 806 1,000  981 899 1,057  
 Other  333 391 109 100 68 68 
Capital account  35 150 -65 -56 -13 -48 
 I. Credit  323 450 237 299 260 220 
 II. Debit  288 300 301 355 273 268 
Financial account (Net lending 
(+)/Net borrowing ( -)) -32,600  -33,363  -31,584  -
16,131  22,091  3,086  
 I. Direct investment  -31,027  -30,143  -25,726  -23,772  -25,224  -32,338  
 A. Net acquisition of financial assets  7,869  3,082  12,124  5,969  6,024  -369 
 Equity and investment fund shares  7,188  6,022  10,540  8,720  6,494  1,374  
 Debt instruments  680 -2,940  1,585  -2,752  -470 -1,744  
-70,000-60,000-50,000-40,000-30,000-20,000-10,000010,00020,00030,00040,00050,000
2016 2017 2018 2019 2020 2021Financial account
Current accountWT/TPR/S/429 • Mexico  
 
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   2016  2017  2018  2019  2020a 2021a 
 B. Net liabilities incurred  38,896  33,225  37,850  29,740  31,248  31,969  
 Equity and investment fund shares  21,638  23,911  24,597  31,452  22,768  26,038  
 Debt instruments  17,258  9,314  13,253  -1,712  8,479  5,930  
 II. Portfolio investment  -26,602  -10,983  -8,605  -6,683  10,344  41,557  
 A. Net acquisition of financial assets  3,083  13,030  894 3,411  16,458  22,672  
 Equity and investment fund shares  1,560  10,676  2,513  2,658  13,242  14,687  
 Debt securities  1,522  2,353  -1,619  753 3,216  7,985  
 B. Net liabilities incurred  29,684  24,013  9,499  10,094  6,114  -18,885  
 Equity and investment fund shares  9,477  10,320  2,421  -10 186 -3,163  
 Debt securities  20,207  13,692  7,077  10,104  5,928  -15,722  
 III. Financial derivatives (net 
 transactions)  -2,247  3,074  410 1,672  -1,800  2,083  
 IV. Other investment  27,411  9,453  1,853  10,013  26,782  -18,504  
 A. Net acquisition of financial assets  24,229  6,801  8,713  13,560  23,184  -6,964  
 B. Net liabilities incurred  -3,182  -2,652  6,860  3,547  -3,598  11,540  
 Special drawing rights  0 0 0 0 0 12,145  
 Money and deposits  751 -381 175 154 -360 -896 
 Loans, trade credits and advances  -980 2,211  2,134  4,105  -311 2,017  
 Other accounts payable  -2,953  -4,482  4,551  -712 -2,927  -1,726  
 V. Reserve assets  -136 -4,765  483 2,638  11,990  10,288  
 Total variation in gross international 
reserves  428 -2,575  934 6,644  16,029  8,689  
 Valuation adjustments  564 2,190  451 4,005  4,039  -1,600  
Errors and omissions  -8,494  -13,484  -7,193  -
12,604  -4,106  8,000  
Memorandum  
Goods and services balance  -21,915  -20,463  -24,708  -2,909  22,752  -22,879  
 Balance of goods  -13,082  -10,984  -13,768  5,167  33,979  -11,467  
 Balance of oil -related goods  -12,741  -18,285  -23,132  -21,413  -13,924  -24,926  
 Balance of non -oil-related goods  -393 7,323  9,543  26,775  47,938  13,435  
 Balance of goods procured in ports 
by carriers  52 -22 -178 -195 -34 24 
 Balance of services  -8,833  -9,479  -10,941  -8,077  -11,227  -11,412  
Balance of primary income  -29,320  -29,709  -33,035  -36,768  -36,616  -32,912  
Balance of secondary income  27,094  30,143  33,417  36,207  40,074  50,926  
Financial account without reserve assets  -32,464  -28,598  -32,068  -18,769  10,101  -7,202  
Gross international reserves (end of 
period)  178,025  175,450  176,384  183,028  199,056  207,745  
a Preliminary figures.  
Source:  Data provided by the authorities . 
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.3.1.1   Merchandise trade  
1.47.   During the period under review, trade in goods  experienced a slowdown, followed by a 
contraction, as a co nsequence of the COVID -19 pandemic, and a recovery in 2021. In reflection of 
this recovery, exports grew in current USD terms between 2016 and 2021 (Chart 1.2 and 
Table  A1.1), mirroring, in particular, the continuing decline in oil exports. Merchandise imp orts, 
however, decreased between 2016 and 2020, and rebounded considerably in 2021 (by almost a 
third compared to 2020), representing an increase of 30.6% compared with 2018 in 
current  USD terms (Table A1.2). Merchandise exports in 2021 amounted to USD 494 ,225 million 
(USD  416,999 million in 2020), while imports totalled  USD 505,716 million (USD  382,986  million in 
2020).  
1.3.1.1.1   Composition of merchandise trade  
1.48.   Mexico's exports continue to be dominated by manufactured products, which accounted for  
more than 85% of the total in 202 1, while agricultural products made up  5%, and mineral products 
(mainly oil products) and those of the extractive industries, 7.5% (Cha rt 1.2). The leading 
manufacturing exports continue to be electrical machinery and appliances, and transport equipment, 
which accounted for 58.8% of total exports in 2021. Exports of electrical machinery, appliances and 
equipment account for 34.8% of the t otal, with products for the automotive industry 
representing  24.0% (Table  A1.1). The maquila industry continues to be very important for Mexico's WT/TPR/S/429 • Mexico  
 
- 33 - 
 
  foreign trade, since almost 60% of the country's exports benefited from this regime in 2021. The 
composition o f maquila exports continues to be dominated by manufactured products, particularly 
electrical machinery and appliances, and transport equipment, which jointly accounted for 70% of 
maquila exports in 2020 and 68% in 2021.  
1.49.   Imports and exports have similar st ructures. The main import products are electrical 
machinery and appliances (35.7% of imports in 2021), and transport equipment  (8% of total 
imports) (Table A1.3 and Chart 1.2).  
1.3.1.1.2   Direction of merchandise trade  
1.50.   Mexico's export markets remain highly concentrated. The United States is still  Mexico's main 
trading partner, with a share of total exports that remained relatively constant between 2016 
(80.9%) and 2021 (80.7%). This being so, the vast majority of Mexican  trade is cross -border, and 
consists of finished goods or other goods that form part of global value chains, as a result of the 
strong presence of assembly industries.  
1.51.   The second largest export market on the American continent is Canada, which received 2.6 % 
of Mexico's total exports in 2021, followed by Brazil with 0.7%. The remainder of Mexico's exports 
are sent mainly to the 27 members of the European Union (3.7%) and China (1.9%).  
1.52.   The United States is also the main source of Mexico's imports, providing 4 3.8% of the total 
in 2021. Imports from Asia represented 38% of the total, with China accounting for 20%, followed 
by the Republic of Korea with 3.8% and Japan with 3.4%. The European Union (27) was also an 
important source of imports, accounting for 10% o f the total in 2021 (Table A1.4 and Chart 1.3).  WT/TPR/S/429 • Mexico  
 
- 34 - 
 
  Chart 1.2 Merchandise trade by main products, 2016 and 2021  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
2016 2021
(a)    Exports
Total: USD 373,954 million
(b)    Imports
Total: USD 387,088 million Total: USD 505,716 millionTotal: USD 494,225 millionOther
14.1%Other
13.7%
Mineral 
products
6.8%Chemical 
products
6.8%
Plastics
7.3%
Electrical machines 
and apparatus
39.1%Other
15.6%Mineral 
products
9.1%
Chemical 
products
7.7%
Plastics
7.4%
Base metals
9.6%
Electrical machines 
and apparatus
35.7%Other
15.2%
Base 
metals
8%Instruments 
and 
apparatus
3.9%Vegetable 
products
3.7%Vegetable 
products
3.8%
Transport 
equipment
10%Transport 
equipment
8%Mineral 
products
6%Prepared 
foodstuffs
3%Prepared foodstuffs
3.9%
Transport 
equipment
24.7%Mineral 
products
7.5%
Transport 
equipment
24%
Vegetable 
products
2.5%Vegetable 
products
3.2%
Instruments 
and 
apparatus
4.1%Plastics
2.9%
Base metals
4.2%
Electrical machines 
and apparatus
36.9%Instruments 
and 
apparatus
4.4%Plastics
3.1%
Base 
metals
5%
Electrical machines 
and apparatus
34.8%Instruments 
and 
apparatus
4.2%WT/TPR/S/429 • Mexico  
 
- 35 - 
 
  Chart 1.3 Merchandise trade by trading partner, 2016 and 2021  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
1.3.1.2   Trade in services  
1.53.   Mexico's services trade continued to be in deficit during the re view period, owing mainly to 
shortfalls in transport and insurance. Its main categories show negative balances, with the exception 
of travel. Both exports and imports of services were heavily affected by the pandemic. The category 
most affected was travel,  which is the category in which Mexico normally has a surplus. In 2020, 
this led to a deficit in services of USD 11,227 million, which was considerably higher than the 
previous year, despite the decrease in economic activity. The deficit remained high in 2 021, 
amounting to USD 11,412 million, due mainly to the fact that travel sector exports remained well 
below their pre -pandemic levels (Table 1.7).  
2016 2021
(a)    Exports
Total: USD 373,954 million
(b)    Imports
Total: USD 387,088 million Total: USD 505,716 millionTotal: USD 494,225 millionBrazil
0.8%Other
0.5%
United States
80.9%Other America
4.5%
Brazil
1.2%America
88.2%
United States
80.7%Other America
4.1%
Canada
2.6%Other
0.6%
Asia
5.9%
America
89%Asia
5%
United 
States
46.5%
Other 
America
1.9%Canada
2.5%China
18%Other 
Asia
7.1%Other
0.9%
United 
States
43.8%
Other 
America
1.9%Korea, Rep. of
3.8%
China
20%Other 
Asia
8.4%Other
1.2%
America
52.1%America
49.7%
Europe
11.7%Europe
11.2%Asia
35.2%Asia
38%Europe
5.4%Canada
2.8%
Canada
2.2%EU (27)
4.3%Other Europe
1.2%
Brazil
1.7%Other 
Asia
3.5%
Korea, Rep. of
3.5%Other Europe
1.7% China
1.4%Other 
Asia
4%
Brazil
0.7%EU (27)
3.7%
Japan
3.4%Japan
4.6%Europe
5.5%China
1.9%
EU (27)
10.4%EU (27)
10%Other 
Europe
1.3%Other 
Europe
1.2%Malaysia
2.1%Malaysia
2.5%WT/TPR/S/429 • Mexico  
 
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  Table 1.7 Trade in services, 2016 -21 
(USD million)   
2016  2017  2018  2019  2020a 2021a 
Exports  24,213  27,595  29,028  31,717  17,037  27,257  
 Transport  1,598  1,904  2,195  2,936  1,934  2,384  
 Travel  19,650  21,336  22,526  24,573  10,996  19,796  
 Insurance and pension services  2,502  3,742  3,285  3,120  3,087  3,719  
 Financial services  154 275 341 430 453 574 
 Other services  309 338 681 658 567 785 
Imports  33,047  37,074  39,969  39,794  28,264  38,670  
 Transport  13,194  14,837  15,700  14,775  11,110  18,428  
 Travel  10,303  10,840  11,230  9,881  3,475  5,182  
 Insurance and pension services  3,919  4,952  4,851  6,248  5,532  6,662  
 Financial services  1,788  1,896  3,323  3,355  2,522  2,630  
 Other services  3,842  4,549  4,865  5,535  5,626  5,768  
Balance of services  -8,833  -9,479  -10,941  -8,077  -11,227  -11,412  
a Preliminary figures.  
Source:  Data provided by the authorities.  
1.3.2   Trends and patterns in FDI  
1.54.   Throughout most of the review period (2016 -21), annual foreign direct investment (FDI) flows 
remained above USD 30 billion. I n 2021, FDI flows increased compared with 2020, according to 
preliminary data (Table 1.8). The main FDI -recipient sectors in 2016 -21 were manufacturing 
industries, followed by financial and insurance services, trade, transport ation, mining and energy.  
Table 1.8 Foreign direct investment by activity, 2016 -21 
(USD million)  
Sectors  2016  2017  2018  2019  2020  2021  
Agriculture, livestock production, forestry, fishing 
and hunting  103 141 -18 106 136 208 
Mining  1,067  1,729  1.733  2,007  1,413  4,800  
Utilities  1,334  2,134  5.011  1,245  434 451 
Construction  1,203  3,089  1.798  348 444 241 
Manufacturing  17,941  14,984  15.659  15,886  10,841  12,559  
Trade  1,922  3,104  2.969  3,270  2,121  2,698  
Transport, postal and warehousing services  1,865  3,375  1.352  981 2,879  2,767  
Information in mass media  920 631 1.123  1,814  1,240  577 
Financial and insurance services  3,480  2,669  2.382  5,499  6,480  4,750  
Real estate, rental and leasing of movable and 
intangible property  434 561 319 1,230  357 253 
Professional, scientific and technical services  161 241 155 487 341 236 
Business support, waste management and 
remediation services  51 263 125 176 7 176 
Educational services  0 30 64 -7 -1 24 
Health and social services  12 11 7 23 16 12 
Leisure, cultural and sporting and other 
recreational services  52 223 41 38 -25 96 
Hotel and restaurant services  620 923 1.316  1,244  1,180  1,644  
Other services except public administration  23 22 58 65 70 129 
Total 31,186  34,131  34,090  34,411  27,934  31,621  
Note:  Due to rounding, the totals may not correspond to the sum of the figures shown . 
Source:  National Foreign Investment Registry. Ministry of Economic Affairs.  
1.55.   The originators of FDI flows into Mexico continue to be led by the United States, which 
accounted for 47.5% of FDI in 2021, followed by Spain (13.7%) and Canada (6.5%) (Table 1.9).  
Table 1.9 Foreign direct investment by country of origin, 2016 -21 
(USD million)   
2016  2017  2018  2019  2020  2021  
United States  11,076  15,403  11,850  12,919  10,467  15,009  
Spain  3,567  3,361  4,167  4,061  3,977  4,335  
Canada  2,299  2,826  4,194  2,955  4,215  2,071  
Germany  2,849  2,740  2,965  3,530  726 1,646  
Japan  1,964  2,460  2,280  1,489  1,225  1,583  
Italy 806 1,865  1,531  1,502  686 129 WT/TPR/S/429 • Mexico  
 
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2016  2017  2018  2019  2020  2021  
United Kingdom  456 501 739 732 901 1,817  
Belgium  1,123  1,041  68 1,371  306 77 
Korea, Republic of  1,125  259 704 172 601 685 
France  455 547 621 1,036  293 386 
Australia  90 1,379  616 768 328 50 
Argentina  287 350 1,085  464 664 309 
Switzerland  584 300 631 722 522 384 
Netherlands  226 -213 753 884 714 -278 
Israel  2,015  2 2 -3 1 -1 
Other  2,264  1,310  1,885  1,809  2,306  3,421  
Total 31,186  34,131  34,090  34,411  27,934  31,621  
Note:  Due to rounding, the totals may not correspond to the sum of the figures shown . 
Source:  National Foreign Investment Registry. Ministry of Economic Affairs.  
 
 WT/TPR/S/429 • Mexico  
 
- 38 - 
 
  2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
2.1.  Mexico is a federal republic, consistin g of a federal govern ment, 31 state governments and the 
government of Mexico City.  
2.2.  Since the previous review in 2017, the Political Constitution of the United Mexican States 
(CPEUM), which was promulgated in 1917, has undergone some 20 reforms.1 The feder al State is 
governed by three branches. The Congress of the Union, comprising the Chamber of Deputies and 
the Senate, exercises legislative power. Deputies (500) and senators (128) are elected for three and 
six years, respectively. The head of the Executiv e is the President, who is elected for a 
six-year non-renewable term. In 2021, the Judiciary underwent several reforms, including the 
establishment of the Regional Plenums, which replaced the Circuit Court Plenums and of the 
collegiate courts of appeal, wh ich replaced the unitary circuit courts.2 Consequently, the Judiciary is 
currently composed of the Supreme Court of Justice of the Nation, the Electoral Tribunal, the 
Regional Plenums, the collegiate circuit courts, the collegiate courts of appeal and dis trict courts.  
2.3.  There are also autonomous constitutional bodies, such as the Bank of Mexico, the Federal 
Economic Competition Commission (COFECE) and the Federal Telecommunications Institute (IFT).3 
These bodies, which have organizational, technical, budgetary and administrative autonomy, were 
created under the Constitution, and are therefore not subordinate to the branches of government.4 
2.4.  In 2022, the Federal Public Administration (APF) comprises 2 2 centralized bodies 
and 203 parastatal bodies (Chart 2.1). The parastatal bodies include State -owned companies. 
Since  2017, five parastatal bodies have closed, including ProMéxico, which was the former export 
and investment promotion agency . 
 
1 Constitutional reforms viewed at: http://www.diputados.gob.mx/LeyesBiblio/ref/cpeum.htm . 
2 Constitutional reform published in the Official Journal of 11 March 2021.  
3 Other bodies include: the National Human Rights Commission (CNDH ); the National Council for Social 
Development Policy Evaluation (CONEVAL); the Office of the Attorney General of the Republic (FGR); National 
Institute of Statistics and Geography (INEGI); the National Institute for Transparency, Access to Information 
and Personal Data Protection (INAI); and the National Electoral Institute (INE).  
4 Senate Gazette LXIV/1SPR -31/98251 of 14 August 2019.  WT/TPR/S/429 • Mexico  
 
- 39 - 
 
  Chart 2.1 Composition of the APF in 2022  
 
a The Ministries are as follows: (1) the Ministry of Agriculture and Rural Development; (2) the Ministry 
for Well-being ; (3) the Ministry of Infrastructure, Communications and Transport; (4) the Ministry of 
Culture; (5) the Ministry of Defence; (6) the Minis try of Agricultural, Territorial and Urban 
Development; (7) the Ministry of Economic Affairs; (8) the Ministry of Public Education; 
(9) the Ministry of Energy; (10) the Ministry of Public Administration; (11) the Ministry of the 
Interior; (12)  the Ministry  of Finance and Public Credit; (13) the Ministry of the Navy; 
(14) the Ministry of the Environment and Natural Resources; (15) the Ministry of Foreign Affairs; 
(16) the Ministry of Health; (17) the Ministry of Labour and Social Security; and (18) the Minis try of 
Tourism.  
Source:  Government of Mexico. Viewed at: https://www.gob.mx/gobierno#secretarias ; Law on the 
Organization of the Federal Public Administration (Official Journal of 29  December  1976, latest 
amendment of 11  January  2021); and list of parastatal bodies belonging to the Federal Public 
Administration (Official Journal of 13  August  2021).  
2.5.  The federative entities (the states and Mexico City) are sovereign and autonomous, and 
therefore hav e their own political constitution and own legislative powers (local congress, comprising 
a single chamber of deputies), executive (the Governor or, in the case of Mexico City, the Head of 
Government) and judiciary (the courts established under the local c onstitution. The high court or 
the supreme court is the highest instance of the local judiciary). The federative entities may establish 
their own institutions and pass their own laws. The states are divided into municipalities, governed 
by municipal counci ls, while Mexico City is made up of boroughs governed by mayors.  
2.6.  The Constitution defines the competences of the Federal State and the federative entities. The 
federative entities exercise all powers not "expressly granted" to the Federal State.5 For exam ple, 
the Federal State has the "exclusive power" to levy duties on imports, exports or goods in transit, 
and to regulate (and even prohibit) the circulation of goods within the national territory.6 The 
Constitution prohibits the federative entities from u ndertaking certain activities. For example, the 
federative entities cannot sign international agreements, mint money, incur obligations abroad or in 
foreign currencies, or levy duties on the transit, entry or exit of goods within their territory.7 
However , if so authorized by the Congress of the Union, the federative entities may impose taxes or 
duties related to foreign trade.8 
2.7.  The federative entities have the power to pass laws on matters falling within the competence 
of the Federal State, provided that  such matters are not already the subject of a federal law or 
decree, and should it be necessary to regulate them. In this case, the sub -federal law would be 
repealed as soon as a federal law or decree entered into force. In some cases, both the federal 
government and the federative entities regulate the same matter (for example, health) or different 
aspects of the same subject (for example, transport and communication routes).  
 
5 Article 124 of the Political Constitution of the United Mexican States.  
6 Article 131 of the Political Constitution of the United Mexican States.  
7 Article 117 of the Political Constitution of the United Mexican States.  
8 Article 118 of the Political Constitution of the United Mexican States.  
Parastatal 
bodiesAPFMinistries (18)aOffice of the President of 
the Republic
Decentralized bodies 
(106)
Office of the Legal Counsel 
of the Federal Executive
National 
Hydrocarbons 
Commission (CNH)Energy Regulatory 
Commission (CRE)State -controlled 
companies (64) 
Public trust funds 
(18)
State -owned production 
companies (2) and their 
subsidiary companies (13)Centralized 
bodies Coordinated 
regulatory bodies in 
the energy sectorWT/TPR/S/429 • Mexico  
 
- 40 - 
 
  2.8.  Mexico has a National Tax Coordination System (SNCF), in which the Federal State  and the 
federative entities participate.9 Through the SNCF, the Federal State transfers "federal 
contributions", that is, a percentage of federal tax and non -tax revenue10, to the federative entities. 
The Federal State does not specify how the "federal c ontributions" should be used. These 
contributions are extremely important for some federative entities, since they account for 
over 85% of their total revenue.11 Under the SNCF, in addition to providing "federal contributions", 
the Federal State finances d ecentralized public services, such as education and public health, through 
"allocations". Unlike "federal contributions", "allocations" must be used for specific purposes, and 
therefore the federative entities must report to the Federal State on how such a llocations are used.12 
2.9.  The Constitution, the laws passed by the Congress of the Union and international agreements 
constitute the supreme law.13 Federal laws and decrees are followed by sub -federal constitutions 
and laws.  
2.10.   The legislative procedure has not changed since the previous review in 2017. Generally, draft 
laws and decrees are debated in the two chambers of the Congress of the Union (Box 2.1).14 These 
drafts may be tabled in either of the two chambers, except when they concern borrowing, 
contributions, taxes, or the recruitment of troops, in which case they must first be debated in the 
Chamber of Deputies. The chamber in which the legislative pro cedure is initiated is the originating 
chamber and the other is the review chamber.  
Box 2.1 Legislative procedure  
(1) Submission of the draft law or decree : a draft law or decree may be tabled by the President, deputies 
or senators of the Congress of the Union, local deputies or citizens (with the support of 0.13% of 
registered voters).  
(2) Discussion and approval : if the draft is approved in the originating chamber, it is referred to the review 
chamber, in whic h three situations may arise:  
(a) the review chamber approves the draft, which is forwarded to the Executive;  
(b) the review chamber rejects the draft in its entirety and returns it to the originating chamber. If the 
originating chamber insists on the orig inal text, it will once again submit the draft to the review 
chamber, which may: (a) approve the original text, in which case the draft is forwarded to the 
Executive; or (b) reject the text, in which case the draft may not be resubmitted during the same 
congressional session (it is archived);  
(c) the review chamber rejects part of the text, or amends it or adds new text, and returns the draft to 
the originating chamber. The originating chamber examines only the part that has been rejected, 
amended or added.  If the originating chamber approves the changes, the draft is sent to the 
Executive. If the originating chamber insists on the original text, the text is returned to the review 
chamber, which may: (a) reject its own changes and send the draft to the Execu tive; or (b) insist on 
its changes, in which case, the draft may not be resubmitted during the same congressional session 
or, if the originating chamber and the review chamber so agree, only the approved text is forwarded 
to the Executive.  
The draft laws o r decrees must be approved by an absolute majority of votes, with the exception of 
constitutional reform bills which require a qualified majority (two -thirds) of votes. Furthermore, constitutional 
reform bills must be approved by the Congress of the Union and by the absolute majority of the local 
congresses before being forwarded to the Executive (Article 135 of the CPEUM).  
 
9 Fiscal Coordination Law (Official Journal of 27 December 1978, latest amendment 
of 30 January  2018).  
10 Federal tax revenue includes federal taxes, such as income tax, value -added tax (VAT) and the 
special tax on production and services (IEPS). Federal non -tax revenue includes various federal duties levied 
on the exploitation of hydrocarbons and minerals.  
11 Superior Audit Office of the Federation (2018), Participaciones Federales a Entidades Federativas y 
Municipios; Auditoría Especial del Gasto Federalizado . Viewed at: 
https://www.asf.gob.mx/Trans/Informes/IR2018c/Documentos/Auditorias/MR -PART.%20FEDERALES_a.pdf . 
12 Ministry of the Interior. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/225601/Gasto_federalizado_e_indicadores.pdf . 
13 Article 133 of the Political Constitution of the United Mexican States.  
14 Draft laws or decrees related to the  exclusive powers of the Chamber of Deputies of the Senate 
(stipulated in Articles 74 and 76 of the Constitution) are only debated in the corresponding chamber. When the 
draft law is approved by the chamber, it is sent to the Executive. Therefore no debate s are held between the 
two chambers.  WT/TPR/S/429 • Mexico  
 
- 41 - 
 
  (3) Approval, promulgation and publication : If the Executive has no comments to make, it approves the 
draft law or decree. The law or decree is promulgated and is published in the Official Journal. The 
Executive may also reject (totally or partially) a draft law or decree, on the grounds that it is 
unconstitutional or for other reasons. Regardless of the grounds, the text will be reconsi dered by the 
originating chamber. If the originating chamber insists on the text (by qualified majority), it will be 
forwarded to the review chamber. If the review chamber insists on the text (by qualified majority), the 
draft will be sent once again to th e Executive. In this case, the Executive must approve it, and the law or 
decree is promulgated and published in the Official Journal.  
Source:  Article 72 of the Political Constitution of the United Mexican States.  
2.11.   In principle, only the Congress of the Union can pass laws and decrees. However, the 
Constitution empowers the Executive to legislate in emergency situations in which the "public peace" 
is threatened, or when the Executive deems it "urgent" in order to regulate foreign trade, the national 
econo my, the stability of domestic production or other similar situations.15 In these cases, the 
Executive issues decrees or provisions which are generally enforceable and which have the same 
standing as laws and decrees passed by the Congress of the Union.16 Between 2017 and 2022, the 
Executive issued several decrees to regulate foreign trade, with the adoption of measures such as 
modifications to nomenclature and tariff rates, and the restriction or prohibition of the importation 
and exportation (or transit of ) goods ( Section 2.2).  
2.12.   International agreements are signed by the Executive and are approved by senators. In the 
case of trade agreements, before making a decision, senators may consider the opinion of the 
federative entities, as well as business and civil  society organizations and trade unions.17 
2.2  Trade Policy Formulation and Objectives  
2.13.   The formulation and implementation of trade policy continues to be the responsibility of the 
Ministry of Economic Affairs18, which works together with other Ministries to de velop a 
comprehensive policy for trade liberalization and promotion, and for attracting foreign investment. 
It collaborates in particular with the Ministry of Foreign Affairs, the Ministry of Finance and Public 
Credit (SHCP), the Ministry of Agriculture an d Rural Development (SADER), and with the Ministry of 
the Environment and Natural Resources (SEMARNAT), the Ministry of Energy, the Ministry of 
Tourism, the Ministry of Health, and the Ministry of Defence.19 Local governments and interested 
parties are als o consulted on the formulation of trade policy.  
2.14.   All measures concerning foreign trade, such as the establishment, increase, decrease or 
elimination of tariffs and tariff preferences, including those decreed by the Executive, must be 
assessed and approved b y the Foreign Trade Commission (COCEX) prior to implementation. 
If COCEX does not approve the measure, the relevant institutions may review and resubmit it. The 
Commission also periodically reviews existing measures, either ex officio  or at the request of the 
interested parties, in order to issue non -binding recommendations.20 The Commission comprises the 
Ministry of Economic Affairs (which acts as chair), the Ministry of Foreign Affairs, the Ministry of 
Agriculture and Rural Developme nt, the Ministry of the Environment and Natural Resources, the 
Ministry of Health; and two autonomous constitutional bodies: the Bank of Mexico and the COFECE.21 
 
15 Articles 49 and 131 of the Political Constitution of the United Mexican States.  
16 The regulation expedited by the Executive in emergency situations is repealed as soon as the causes 
of the emergency cease to exist, or  it may be incorporated into federal law if the Congress of the Union tables 
and approves the relevant draft law or decree.  
17 Law on the Conclusion of Agreements (Official Journal of 2 January 1992, latest amendment of 
20 May 2021). Law on the Approval of International Economic Treaties (Official Journal of 2 September 2004).  
18 Foreign Trade Law (Official Journal of 27 July 1993, latest amendment of 21 December 2006).  
19 Information provided by the authorities.  
20 Regulations implementing the Foreign Trade La w (Official Journal of 30 December 1993, latest 
amendment  of 22 May 2014);  Ministry  of Economic  Affairs.  Viewed  at: http://www.siicex.gob.mx/portalSiicex/
COCEX/COCEX.htm ; and COFECE (201 7), Política comercial con visión de competencia.  Viewed at: 
https://www.cofece.mx/cofece/images/Promocion/Estudios -y-Publicaciones/Cuaderno -de%20promocion -1-
Politica -comercial -con-vision -de-competencia -VF.pdf . 
21 The Tax Administration Service (SAT), the Office of the Attorney General (FGR) and the National 
Commissi on on Regulatory Improvement (CONAMER), may participate in COCEX meetings, without the right to 
vote. WT/TPR/S/429 • Mexico  
 
- 42 - 
 
  2.15.   Prior to publication in the Official Journal, trade measures must undergo a regulatory 
improve ment procedure carried out by means of a regulatory impact assessment (RIA), by the 
National Commission for Regulatory Improvement (CONAMER). This assessment, which is only 
carried out if the implementation of the measure is likely to involve a cost for pr ivate individuals, is 
aimed at ensuring that the benefits of the regulation are greater than the costs of compliance, and 
that the requirements and procedures are simplified and streamlined. Existing measures may also 
undergo an ( ex post ) RIA, which focuse s on evaluating them, their effects and compliance. 
Depending on the result obtained, the measure will be retained, amended or abolished.22 For 
example, in 2020, new requirements for the importation and exportation of products intended for 
human consumptio n were subject to a RIA.23 
2.16.   Through the Joint Commission for the Promotion of Exports (COMPEX), representatives of the 
public and private sectors put forward, assess and develop proposals to streamline export 
procedures.24 
2.17.   Foreign trade policy and the strat egies to achieve established objectives are set out in the 
National Development Plan (PND) (2019 -24) and the Sectoral Programme for the Economy  
(2020 -24), which is based on the PND. Mexico's trade policy operates at various levels, namely at 
the multilater al, regional, bilateral and unilateral level.25 The country's trade policy objectives are to 
promote foreign trade, defend its trade interests, and negotiate, implement and administer trade 
agreements.26 While integration into international trade has foste red the growth, modernization and 
diversification of the Mexican economy, Mexico is seeking to attract more investment in sectors and 
regions that have, in the past, benefited to a lesser extent from trade integration.27 The aim is to 
encourage the develop ment of high value -added sectors to promote innovation, the technological 
transformation of MSMEs and their integration into global value chains, and to increase the local 
content of exports. At the same time, Mexico continues to negotiate and improve mark et access in 
order to promote the growth and diversification of its exports. Women play a key role in Mexico's 
foreign trade strategies, in terms of fostering growth and reducing poverty.  
2.18.   To achieve the trade policy objectives, the Executive may decree, on  an expedited basis and 
if it is deemed "urgent", measures to regulate foreign trade. For example, it may amend 
nomenclature and tariff rates, and restrict or prohibit the importation and exportation (or transit) of 
goods.28 Since 2017, the Executive has d ecreed: (i) the increase of tariff rates to defend the interests 
of the domestic steel, aluminium, footwear, and textiles and clothing industries; 
and (ii) the amendment of tariff nomenclature in order to facilitate its interpretation, with the aim 
of prov iding foreign trade operators with greater clarity regarding requests for tariff concessions or 
the implementation of new trade agreements. Furthermore, the Executive decided to eliminate tariffs 
on imports of electric vehicles (in order to meet the Paris Agreement obligations) and, in 2021, on 
vaccines against the SARS -CoV-2 virus and aluminium containers for oxygen as a result of the 
pandemic. However, the importation and exportation of pesticides, e -cigarettes and similar personal 
electronic vaping devic es, were prohibited, in order to protect human health and the environment.29 
 
22 Information provided by the authorities; General Regulatory Improvement Law (Official Journal 
of 18 May 2018, latest amendment of 20 May 2021); and CONA MER. Viewed at: 
https://www.gob.mx/conamer/acciones -y-programas/manifestacion -de-impacto -regulatorio -mir. 
23 Information provided by the authorities; an d CONAMER. Viewed at: 
https://cofemersimir.gob.mx/expedientes/25222 . 
24 Foreign Trade Law Regulations.  
25 Sectoral Programme for the Economy 2020 -24; Ministry of Economic Affairs press releases 
of 19 January 2021 and 22 May 2019. Viewed at: https://www.gob.mx/se/prensa/mensaje -de-la-secretaria -
de-econom ia-tatiana -clouthier -carrillo -en-reunion -con-reporteros -de-la-
fuente  and https://www.gob.mx/se/prensa/participacion -de-la-subsecretaria -de-comercio -exterior -luz-maria -
de-la-mora-en-el-panel -comercio -exterior -como -palanca -de-desarrollo ; and information provided by the 
authorities.  
26 Ministry of Economic Affairs press release of 19 Ja nuary 2021.  
27 Ministry of Economic Affairs press release of 22 May 2019.  
28 Article 131 of the Political Constitution of the United Mexican States.  
29 The decrees issued by the Executive amend the Law on General Import and Export Taxes (LIGIE). For 
further  information,  see the National  Foreign  Trade  Information  System  (SNICE).  Viewed  at: https://www.snice
.gob.mx/cs/avi/snice/ligie.modificaciones.html  and https://www.snice.gob.mx/cs/avi/snice/tarifamodificaciones
.html. WT/TPR/S/429 • Mexico  
 
- 43 - 
 
  2.19.   The federal agency for the promotion of exports and investment, ProMéxico, was closed 
in 2019.30 Its competences were transferred to the Ministry of Economic Affairs, which were 
implemented in coordination with the Ministry of Foreign Affairs. In 2019, the Ministries of the 
Economy and of Foreign Affairs signed an agreement to collaborate on both the development of the 
strategy to promote exports and investment, as well as its impl ementation, which is carried out by 
Mexican representative offices abroad.31 Also in 2019, the Ministry of Economic Affairs created the 
International Business Centre (CINSE) to promote exports and imports. Moreover, in 2020 and 2021, 
the Ministry of Economic Affairs launched three platforms: ExportaMX and ComerciaMX, to increase 
the presence of Mexican products on the international market; and InvestinMX to provide information 
on the procedures for setting up foreign investment. As was the case in 2017, the 
Directorate -General of Foreign Investment (DGIE) of the Ministry of Economi c Affairs is responsible 
for foreign investment.32 
2.20.   For purposes of transparency, Mexico compiles and provides information on foreign trade, 
including tariff, non -tariff and statistical information, through its online tariff information system 
(SIAVI  5.0) a nd the National Foreign Trade Information System (SNICE).  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.21.   Mexico is a founding Member of the WTO and grants, as a minimum, most -favoured -nation 
(MFN) treatment to all its trading partners. This is its seventh trade pol icy review. Since the previous 
review in 2017, Mexico has submitted various notifications to the WTO in compliance with the 
different Agreements (Table A2.1).  
2.22.   Mexico advocates a rules -based multilateral trading system, which contributes to more 
inclusive d evelopment. It supports the elimination of distortions in the agricultural and fisheries 
sectors.33 It also participates in joint initiatives to examine new trade issues, such as the integration 
of MSMEs into international trade, e -commerce, investment fac ilitation, services domestic regulation 
and environmental sustainability. Mexico participated in the preparatory work for the Twelfth  WTO 
Ministerial Conference (MC12), in particular the drafting of various ministerial statements on the 
promotion of gender  equality and women's economic empowerment within trade34; trade and 
environmental sustainability35; MSMEs36; and sanitary and phytosanitary issues37; as well as the 
Joint Statement on Investment Facilitation for Development.38 Mexico is a member of the  
Asia-Pacific  Economic Cooperation (APEC) forum, the G20 and the Friends of Anti -Dumping 
Negotiations. It has also co -sponsored the joint proposal on a multilateral system for notifying and 
registering geographical indications (GIs) for wines and spirits.  
2.23.   In 2016, Mexico ratified the Agreement on Trade Facilitation (TFA), which entered into force 
in 2017, and notified that it would immediately apply all the provisions of the TFA.39 In January  2021, 
in order to implement the TFA, the National Trade Facilitati on Committee was created, which has 
been in operation since March  2021.40 The Committee comprises 10 Ministries41 and is chaired by 
the Ministry of Economic Affairs. Representatives of two autonomous constitutional bodies (the Bank 
 
30 Decree authorizing the divestiture throug h closure of the public trust fund ProMéxico, deemed to be a 
parastatal body (Official Journal of 3 May 2019).  
31 Foreign Affairs Sectoral Programme 2020 -24. 
32 Ministry of Economic Affairs. Viewed at: https://www.gob.mx/se/acciones -y-
programas/competitividad -y-normatividad -inversion -extranjera -directa?state=published . 
33 WTO document WT/MIN(17)ST/102 of 5 January 2018.  
34 WTO document WT/MIN(21)/4/Rev.1 of 3 December 2021.  
35 WTO document WT/MIN(21)/6/Rev.2 of 14 December 2021.  
36 WTO document WT/MIN(21)/1 of 27 October 2021.  
37 WTO document WT/GC/W/835/Rev.1 -G/SPS/GEN/1758/Rev.10 of 22 November 2021.  
38 WTO document WT/L/1130 of 1 0 December 2021.  
39 TFA Database. Viewed at: https://tfadatabase.org/members/mexico . 
40 Decision permanently establishing the National Trade Facilitation Committee (Official Journal 
of 22 January 2021); and information provided by the authorities.  
41 Ministry of Economic Affairs, Ministry of Foreign Affairs, Ministry of Finance and Public Credit (SHCP), 
Ministry of Agriculture and Rural Development (SADER), Ministry of the Environment and Natural Resources  
(SEMARNAT), Ministry of the Navy, Ministry of Defence, Ministry of Energy, Ministry of Infrastructure, 
Communications and Transport (SICT) and Ministry of Health. Initially, the Ministry of the Navy did not 
participate in the Committee. It joined in Septe mber 2021.  WT/TPR/S/429 • Mexico  
 
- 44 - 
 
  of Mexico and COFECE) al so participate in the Committee's meetings, as do representatives of the 
Tax Administration Service (SAT) and CONAMER, although they do not have the right to vote. 
Representatives from the private sector only participate when their contribution is justifie d, and they 
also do not have the right to vote.  
2.24.   Mexico has accepted the Protocol amending the Agreement on Trade -Related Aspects of 
Intellectual Property Rights (TRIPS). Mexico is not a party to the Agreement on Government 
Procurement or the Agreement on T rade in Civil Aircraft, nor does it have observer status in the 
Committee on Government Procurement or the Committee on Trade in Civil Aircraft. Mexico is not a 
party to the Information Technology Agreement (ITA)  either . Since 2015, Mexico has granted 
preferential treatment to services and service suppliers from least developed countries.42 
2.25.   Since 2017, there has been one case against the trade measures adopted by Mexico, and the 
country has filed two complaints (Table 2.1). Mexico has participated as a thir d party in 29 trade 
disputes.  
Table 2.1 Trade disputes, 2017 -22 
Member: trade measure at issue  Status  
Costa Rica: Measures Concerning the Importation of Fresh 
Avocados from Mexico (DS524)  13/04/2022: Panel report circulated  
United States: Certain Measures on Steel and Aluminium Products 
(DS551)  28/05/2019: Dispute settled (mutually 
agreed solution)  
Mexico: Additional Duties on Certain Products from the United 
States (DS560)  28/05/2019: Dispute settle d (mutually 
agreed solution)  
Source:  WTO Secretariat.  
2.3.2   Regional and preferential agreements  
2.26.   Mexico has signed several trade agreements (Chart 2.2). It is party to, inter alia , the Latin  
American Integration Association (LAIA),  the Agreement between Mexico, the United States and 
Canada (T -MEC), the Comprehensive and Progressive Agreement for Trans -Pacific Partnership 
(CPTPP) and the Pacific Alliance. Within the framework of LAIA, Mexico has several partial scope 
trade agreements  that cover exclusively trade in goods. The agreement with MERCOSUR is limited 
to the automotive sector.  
 
42 WTO document S/C/N/821 of 21 August 2015.  WT/TPR/S/429 • Mexico  
 
- 45 - 
 
  Chart 2.2 Trade agreements signed by Mexico in force in 2022  
 
Note:  AAP.A25TM: Partial Scope Agreement under Article 25 of the Treaty of Montevideo. AAP.CE: Partial 
Scope Economic Complementarity Agreement. AAP.R: Partial Scope Renegotiation Agreement.  
Source:  WTO Secretariat.  
2.27.   Between 2017 and 2022, three agreements entered into force for Mexico: the CPTPP 
in 2018,  T-MEC in 2020 and the Trade Continuity Agreement with the United Kingdom in 2021. 
These agreements cover trade in goods and services. The CPTPP and T -MEC include disciplines on 
new topics such as digital trade, SMEs, trade in sustainable  goods and the environment.  
2.28.   The CPTPP was signed in 2018 and entered into force in the same year for Mexico with all 
Parties, except Viet Nam, with which it entered into force in 2019. The CPTPP includes almost all the 
provisions negotiated under the Trans -Pacific Partnership (TPP). In the CPTPP, Mexico retained the 
market access commitments established in the TPP.43 Pursuant to the negotiated text, Mexico applies 
the same tariff elimination schedule for all Parties, except Japan.44 The tariffs will be comp letely 
phased out in 2033, and in 2034 for Viet Nam (Table 2.2). Mexico also negotiated tariff rate quotas 
for certain dairy products45 and products consisting of natural milk constituents, which, in general, 
apply to all Parties, except Chile and Peru. Th e quota for products consisting of natural milk 
constituents does not apply to Japan either. The quota volumes will increase gradually until 2028 
and will subsequently remain unchanged.46 
 
43 Government of Mexico. Viewed at: https://www.gob.mx/tratado -de-asociacion -
transpacifico/articulos/antecedentes -del-tpp and https://www.gob.mx/tratado -de-asociacion -
transpacifico/es/articulos/textos -del-tratado -integral -y-progresista -de-asociacion -transpacifico?idiom=es . 
44 The authorities indicated that, with Japan, a different tariff elimination schedule was negotiated for 
heavy vehicles.  
45 Milk and cream, milk powder, evaporated milk, condensed milk, butter, cheeses and dairy -based 
preparations.  
46 WTO documents WT/REG395/1/Rev.1 and WT/REG395/1/Add.4 of 8 September 2021 
and 1 April 2021, respectively.  
ChilePanama MEXICOEU
Peru
ColombiaEFTA
Canada
BrazilArgentina
UruguayCuba
Ecuador
Bolivarian 
Republic of 
VenezuelaUnited 
States
ParaguayIsrael
Plurinational 
State of 
Bolivia
MERCOSURNicaraguaCosta Rica
Honduras
GuatemalaEl Salvador
PACIFIC
ALLIANCEJapan
Australia
New 
Zealand SingaporeUnited 
Kingdom
Malaysia Brunei 
DarussalamViet NamWT/TPR/S/429 • Mexico  
 
- 46 - 
 
  Table 2.2 Tariff elim ination schedule agreed by Mexico under the CPTPP  
 Japan  Viet Nam  Other Parties  
End of the tariff elimination period  2033 2034 2033 
 (% of tariff lines)  
Immediate elimination  76.6 76.8 76.8 
Less than 10 years  79.5 79.7 79.7 
10 years  97.7 97.9 97.9 
More than 10 years  99.2 99.4 99.4 
Tariff remains  0.8 0.6 0.6 
Source:  WTO document WT/REG395/1/Add.4 of 1  April 2021; and information provided by the authorities.  
2.29.   T-MEC was signed in 2018, amended in 2019 and entered into force on 1  July 2020. It 
repealed  the North American Free Trade Agreement (NAFTA), which had been in force since 1994. 
However, some of the provisions of NAFTA may continue to be applied on a transitional 
basis.47 T-MEC covers new topics such as trade facilitation, digital trade, the envi ronment, 
competitiveness and the protection of labour rights. The other provisions were updated, including 
those relating to rules of origin, government procurement, and the protection of investments and 
intellectual property rights.48 The Agreement also i ncludes sectoral annexes to harmonize the 
technical requirements for certain products.49 T-MEC also stipulates that hydrocarbon deposits 
located in Mexican territory are the inalienable property of the State. It also includes a review clause 
to extend its initial duration (16 years).  
2.30.   T-MEC maintains the market access conditions agreed under NAFTA. Therefore, all goods 
originating in the region have a tariff of 0 %, except some poultry and dairy products and sugar 
containing products, for which acc ess to the Canadian market remains restricted. As was agreed, 
Mexico did not change the access granted to 100 % of tariff lines with the United States, and 
to 99.2% of tariff lines with Canada. Import tariffs still apply to 0.8 % of the remaining tariff line s 
with Canada. Mexico does not have tariff rate quotas under the Agreement.50 
2.31.    With regard to origin, T -MEC has amended certain criteria (Box 2.2). Certification and the 
verification of origin procedure have also been simplified. Since 2020, origin can be certified by 
means of any trade document (such as an invoice), provided that the necessary information is 
supplied in order to verify compliance with the rules of origin. Furthermore, the certificate of origin 
may be completed and signed not only by the ex porter but also by the producer. In the case of 
Mexico, after a transition period of 3.5 years, the certificate of origin may also be completed and 
signed by the importer.51 
Box 2.2 Rules of origin under T -MEC 
General rules of origin . A good is originating if it is:  
(a) wholly obtained or produced entirely in the region ; T-MEC includes fish obtained from aquaculture.  
(b) produced entirely in the region exclusively from originating materials; T -MEC includes recovered (recycled) 
materials, parts or components, used in the production of a remanufactured good or incorporated in the 
production of such a good.  
(c) produced entirely in the region using non -originating materials. In this ca se, the good must be sufficiently 
worked or processed. T_MEC maintains the change in tariff classification requirement or, otherwise, requires 
regional value content (RVC) equivalent to 60% of the transaction value or 50% of the net cost. However, 
some tol erance is allowed ( de minimis  rule) so that goods produced in the region using non -originating 
materials retain their origin, without having to meet the change in tariff classification or RVC requirements. 
Provided, of course, that the non -originating mate rials do not exceed a certain percentage of the transaction 
value or the net cost or, for textiles and clothing, the total weight . This percentage has increased from 7% 
under NAFTA to 10% under T -MEC, except for elastomeric content, for which the percentag e remains 7%. 
T-MEC also includes sets of goods or composite goods. Therefore, since 2020, goods presented as sets are 
originating only if each good in the set is originating. If this is not the case, the value of all the non -originating 
goods in the set m ust not exceed 10% of the total value of the set.  
 
47 WTO document WT/REG407/1 o f 23 August 2021.  
48 T-MEC, "Preguntas frecuentes".  Viewed at: https://www.gob.mx/t -mec. 
49 Chemical substances, cosmetic products, information and communication technology, energy 
performance standards, medical devic es and pharmaceuticals (Chapter 12 of T -MEC).  
50 WTO document WT/REG407/1 of 23 August 2021.  
51 Article 5.2 of T -MEC. WT/TPR/S/429 • Mexico  
 
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  Specific rules of origin  The specific rules of origin of T -MEC are stricter, as the thresholds for conferring 
origin are higher, in particular in the case of certain sectors such as the automotive, steel a nd aluminium 
sectors. For example, for many automotive goods, the RVC was increased from 62.5% under NAFTA to 75% 
under T -MEC. Furthermore, in order for goods to be granted origin, 70% of vehicle producers' purchases of 
aluminium and steel by value must co me from the region, and origin is only conferred if the metal is melted 
and poured in the territory of one of the Parties. T -MEC also establishes a labour value content (LVC) criterion 
to confer origin in the automotive sector.  
Source:  WTO Secretariat and  T-MEC - Preguntas frecuentes. Viewed at: https://www.gob.mx/t -mec; 
and WTO document WT/REG407/1 of 23  August  2021.  
2.32.   In 2021, trade with the Parties to T -MEC accounted for 64.54 % of Mexico's total foreign trade 
(83.5 2% of exports and 45.99 % of imports). The main products exported by Mexico were passenger 
vehicles, data -processing machines, and vehicle parts and accessories. Mexico mainly imported 
petroleum oils (except crude oils), vehicle parts and accessories, and p etroleum gases and gaseous 
hydrocarbons.52 
2.33.   In December  2020, Mexico and the United Kingdom signed the Trade Continuity Agreement, 
which entered into force on 1  June 2021 for Mexico.53 This Agreement maintains the provisions of 
the Economic Partnership, Political Coordination and Cooperation Agreement with the 
European  Union. Consequently, the tariff reduction programme, tariff rate quotas and rules of origin 
negotiated with the Europea n Union apply to the United Kingdom. The Trade Continuity Agreement 
includes only the legal and technical changes required for the agreement to be implemented (the  
mutatis  mutandis  principle). For instance, the volume and annual increases of tariff rate qu otas have 
been modified, and the rule on the cumulation of origin has been extended. The Agreement is valid 
for a period of three years, during which Mexico and the United Kingdom must negotiate a new trade 
agreement. In May  2022, negotiations had still no t begun.  
2.34.   In 2018 the Second Amending Protocol to the Agricultural Agreement with Iceland entered 
into force.54 As agreed, Mexico immediately liberalized trade in water, including mineral water.  
2.35.   In 2022, Mexico agreed on new provisions for trade in certain types of light motor vehicles 
with Argentina. The reduction of tariffs to 0 % scheduled for 2019 was postponed until 2022 and 
subsequently until 2025.55 Tariff rate quotas were maintained.56 In the case of Brazil, trade in light 
vehicles was liberalized in 2019, while the tariff reduction for heavy vehicles was postponed 
from 2020 to 2023, and a schedule was negotiated for a tariff reduction of 20 % (2020 -21), 
40% (2021 -22), 70 % (2022 -23) and 100 % (as from 1  July 2023).57 
2.36.   In 2020, two amending protocols to th e Additional Protocol to the Pacific Alliance Framework 
Agreement entered into force. Provisions on e -commerce and telecommunications services were 
amended, a new chapter on regulatory improvement was included, and an annex on cosmetic 
products was added t o the chapter on technical barriers to trade. In 2022 the Pacific Alliance and 
Singapore signed a trade agreement.58 
2.37.   In 2020, Mexico and the EU concluded negotiations to extend the Economic Partnership, 
Political Coordination and Cooperation Agreement. The  legal review of the text is being carried out 
in 2022.  
 
52 Ministry  of Economic  Affairs.  Viewed  at: https:// www.economia.gob.mx/files/gobmx/comercioexterior
/fichas/TMEC.pdf ; and information provided by the authorities.  
53 Decree promulgating the Trade Continuity Agreement between the United Mexican States and the 
United Kingdom of Great Britain and Northern Irela nd (Official Journal of 1 June 2021).  
54 The Free Trade Agreement between Mexico and the EFTA States (Iceland, Norway and 
Switzerland/Liechtenstein) includes bilateral agreements on trade in agricultural goods.  
55 Sixth and Seventh Additional Protocols to Ap pendix I to AAP.CE: No. 55.  
56 Seventh Additional Protocol to Appendix I to AAP.CE: No. 55.  
57 Seventh Additional Protocol to Appendix II to AAP.CE: No. 55.  
58 Ministry of Economic Affairs. Viewed at: https://www.gob.mx/se/acciones -y-programas/capitulado -
completo -del-tratado -de-libre-comercio -entre -la-alianza -del-pacifico -y-singapur -pasfta?state=published . WT/TPR/S/429 • Mexico  
 
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  2.3.3   Other agreements and arrangements  
2.38.   In 2022, within the framework of the Generalized System of Preferences (GSP), the 
authorities indicated that Mexico receives preferential treatment from Australia, Be larus, Japan, 
Kazakhstan, New Zealand, the Russian Federation and Türkiye. Mexico is a member of the Global 
System of Trade Preferences among Developing Countries (GSTP), but does not grant preferences.  
2.4  Investment Regime  
2.39.   Mexico's investment regime has not changed substantially since the previous review in 2017. 
This regime is governed by the Constitution (Articles 25, 27 and 28) and the Foreign Investment 
Law (LIE)59 and its implementing regulations.60 The National Foreign Investment Commission (CNIE) 
issues general resolutions defining the criteria for the LIE and its implementing regulations.61 
2.40.   In 2022, Mexico has: 30 Reciprocal Investment Promotion and Protection Agreements 
(APPRI)62; 12 free trade agreements with investment clauses; one Cooperation and I nvestment 
Facilitation Agreement (CIFA)63; and 60 double taxation agreements.64 Mexico is party to the 
Convention establishing the Multilateral Investment Guarantee Agency (MIGA) and, since 2018, to 
the Convention on the Settlement of Investment Disputes b etween States and Nationals of Other 
States (ICSID Convention).  
2.41.   Mexico does not impose foreign exchange controls, or restrictions on capital repatriation or 
the payment of profits, dividends, interest or royalties abroad. However, remittances, including th e 
payment of dividends and profits, and any type of income, are taxed.65 According to the provisions 
of the APPRI and the trade agreements, Mexico may temporarily limit transfers abroad to protect 
the balance of payments.  
2.42.   As was the case in 2017, some acti vities are reserved to the State (Table 2.3) and, in 
accordance with the Constitution, these activities are not considered monopolies (Article 28). The 
State also owns salt pans and mineral deposits, the exploration and exploitation of which require a 
concession.66 To obtain this concession, foreigners must be domiciled in Mexico and must sign an 
agreement with the Ministry of Foreign Affairs, in which they accept to be considered as Mexican  
nationals and renounce the diplomatic protection of their country of origin (Calvo Doctrine). Any 
dispute with the Mexican State can only be settled in Mexican courts.67 No concessions are granted 
to foreigners within restricted areas (within 100  km of the country's borders and within 50  km of 
any coastline).  
 
59 Foreign Investment Law (LIE) (Official Journal of 27 December 1993, latest amendment 
of 15 June 2018).  
60 Regulations implementing the Foreign Investment Law and the National Foreign  Investment Registry 
(Official Journal of 8 September 1998, latest amendment of 17 August 2016).  
61 The CNIE is chaired by the Ministry of Economic Affairs and composed of nine other Ministries: the 
Ministry of the Interior; the Ministry of Foreign Affairs;  the Ministry of Finance and Public Credit (SHCP); the 
Ministry for Wel l-being ; the Ministry of the Environment and Natural Resources (SEMARNAT); the Ministry of 
Energy; the Ministry of Communications and Transport (SCT); the Ministry of Labour and Social Security ; and 
the Ministry of Tourism. The General Resolutions of the CNIE can be viewed at: 
https://www.gob.mx/se/accione s-y-programas/competitividad -y-normatividad -inversion -extranjera -
directa?state=published . 
62 Since 2017, three APPRI have entered into force ( Hong Kong, China; Türkiye and 
United  Arab Emirates).  
63 The CIFA with Brazil entered into force in 2018.  
64 Since 2017, five agreements have entered into force (Argentina, Costa Rica, Jamaica, Philippines and 
Kingdom of Saudi Arabia).  
65 The tax is calculated by multiplying the dividend, income, distributed profit or remittance amount by a 
factor of 1.4286, and applying a rate of 30 % to the result (Tax Regime for Foreign Residents). Viewed at: 
https://imcp.org.mx/IMG/pdf/ANEXO_NOTICIAS_FISCALES_166 -2.pdf. 
66 Article 27 of the Political C onstitution of the United Mexican States.  
67 In addition to the agreement, foreigners from States with which Mexico does not have diplomatic 
relations require a permit from the Ministry of Foreign Affairs (Article 10 -A of the LIE; and Ministry of Foreign 
Affairs). Viewed at: https://sre.gob.mx/convenio -de-renuncia -con-el-objeto -de-obtener -conce siones -para-
exploracion -y-explotacion -de-minas -y-aguas -en-el-territorio -nacional . WT/TPR/S/429 • Mexico  
 
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  Table 2.3 Activities reserved to the Mexican State and to Mexicans, 2017 -22 
Activities reserved to the Mexican State  Activities reserved to Mexicans  
Exploration and extraction of hydrocarbons  Domestic land transportation of passengers, tourists 
and freight  
Planning and control of the national electrical grid; 
transmission and distribution of electric power  Development banking  
Radioactive minerals and nuclear power generation  Professional and technical  services expressly 
stipulated in the applicable legal provisionsa 
Postal, telegraph and radio -telegraphy services   
Control, supervision and surveillance of ports, 
airports and heliports   
Minting of coins and issuing of banknotes   
a There is no consolidated list.  
Source:  Article 28 of the Political Constitution of the United Mexican States and Articles 5 and 6 of the LIE.  
2.43.   Moreover, as was the case in 2017, only Mexicans (natural or legal persons) can provide 
development banking and domestic land transportation services, as well as certain professional 
services (Table 2.3). Foreigners cannot provide these services, and cannot participate directly or 
indirectly as partners or shareholders in Mexican companies providing these services.68 However, 
while domestic land freight transportation services are reserved to Mexicans, foreigners can provide 
messenger and parcel services.  
2.44.   In the sectors and activities in which foreigners may participate, foreign investment must be 
registered in the National Foreig n Investment Registry (RNIE), which is managed by the 
Directorate -General of Foreign Investment (DGIE) of the Ministry of Economic Affairs. In principle, 
foreigners do not require prior authorization to invest. However, in certain cases, they require 
autho rization from the CNIE to make investments above 49 % of the share capital, and authorization 
from the Ministry of Economic Affairs and, where appropriate, from the National Banking and 
Securities Commission (CNBV), to use the neutral investment mechanism . 
2.45.   Mexico grants national treatment to foreign investors. Consequently, foreigners can acquire 
fixed assets, enter new fields of economic activity or manufacture new product lines, and open and 
operate establishments or expand or relocate existing ones. They can also, in principle, hold "any 
proportion", or up to 100 % of the share capital of Mexican companies.69 However, Mexico still 
imposes caps on foreign direct investment (FDI) in certain activities and companies (Table 2.4). 
In 2017, the cap increased from  25% to 49 % for air transport, including domestic air transport, 
international air taxi services and specialized air transport.70 Furthermore, in the framework of the 
air services agreements negotiated by Mexico, Mexican airline companies providing international 
services must be controlled by Mexicans (that is, Mexicans must hold 51 % of the capital). With 
regard to broadcasting, the  LIE allows for FDI of up to 49 %, provided that there is reciprocity with 
the country or territory in which the investor or economic operator that, directly or indirectly, controls 
the investor is incorporated.  
Table 2.4 Economic activities and companies subject to specific regulation, 2017 -22 
(Changes are highlighted in grey)  
FDI cap  Activity or company  
10% Production cooperatives  
25% Until 2017: domestic air transport (scheduled and chartered); air taxi chartered 
international air transport; specialized air transport  
49% Manufacture and marketing of explosives, firearms, cartridges, munitions and fireworks 
Excluding the acquisition, preparation or use of explosives for industrial and  mining 
activities  
Printing and publication of newspapers for circulation in Mexico only  
T-series shares of companies that own agricultural, livestock farming or forestry landsa 
Fresh water, coastal and exclusive economic zone fishing. Excluding aquaculture  
National Ports System Administrations (ASIPONA)/Integrated Port Administrations (API)  
Port pilotage services for vessels navigating inland waterways  
 
68 This is the "foreigners exclusion clause" (Articles 2 and 6 of the LIE).  
69 Article 4 of the LIE.  
70 Article 7 of the LIE, amended by the Decree published in the Official Journal of 26 June 2017.  WT/TPR/S/429 • Mexico  
 
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  FDI cap  Activity or company  
Shipping companies dedicated to the commercial operation of vessels for navigat ing inland 
waterways and cabotage, excluding tourist cruises, dredging activities, and floating or 
fixed structures for the building, maintenance and operation of ports  
Supply of fuel and lubricants for vessels, aircraft and railroad equipment  
Broadcasting  
Since 2017: domestic air transport (scheduled and chartered); international air taxi 
services; specialized air transport  
49% or, if 
approved by 
the CNIE, up 
to 100%  Port services for vessels engaged in inland waterway operations, such as towing, mooring 
and lighterage  
Shipping companies engaged in the operation of ships solely for high -seas traffic  
Concessionaires or permit -holders for aerodromes for public use  
Preschool, primary, secondary, higher secondary, higher and combined private education 
services  
Legal services  
Construction, operation and operation of railroads deemed means of general 
communication, and the provision of public railway services  
a Under the Land Law, companies owning agricultural, livestock farming and forestry land issue 
T-series shares to cover the share of capital contributed in the form of land or used to acquire it.  
Source:  Articles 7 and 8 of the LIE.  
2.46.   For certain a ctivities and companies, FDI normally is limited to 49 %, but foreigners can exceed 
this limit (and even invest up to 100 %) if they obtain an authorization from the CNIE (Table 2.4). 
The CNIE takes 45 days to issue an authorization, which is subject to an e conomic and environmental 
impact study of the investment. The CNIE may also impose requirements as a condition for the 
investment, provided that these requirements do not distort international trade.71 Furthermore, for 
reasons of national security, the CNIE may forbid foreign investment.72 The authorities indicated 
that, between 2017 and 2021, the CNIE approved FDI exceeding 49 % in 26 companies, over 
half of which provided private education services.  
2.47.   Moreover, foreigners require authorization from the CNIE to make investments above 49 % in 
the share capital of Mexican companies with assets that, in total, exceed a given amount 
(since  2020, MXN  20,185  million).73 The authorities indicated that, during the review period 
(2017 -21), in the majority of cases, foreign investment did not require the authorization of 
the CNIE.  FDI in three  companies was authorized by the CNIE.  
2.48.   Despite the existing restrictions, foreigners may use the neutral investment mechanism t o 
participate in activities reserved to Mexicans or to invest in activities and companies subject to 
foreign investment limits (although 100 % neutral investment is not permitted in this case).74 
Consequently, through the neutral investment mechanism, forei gners may participate in the share 
capital of Mexican companies, without their investment being counted as a foreign investment. For 
this type of investment, economic rights are conferred on foreigners as a result of their role as 
investors (shares or stoc ks). However, they may not be involved in the company's decision -making 
processes, or control it. Authorization from the Ministry of Economic Affairs is required to use the 
neutral investment mechanism. Companies operating in the banking sector or listed o n the stock 
exchange also require authorization from the CNBV as well as from the Ministry of Economic Affairs.75 
2.49.   Mexico restricts the acquisition of land by foreigners, depending on the location and the 
intended use of the land (Table 2.5). Furthermore, a lthough the right to private property is 
 
71 Article 29 of the LIE.  
72 Article 30 of the LIE.  
73 The amount is periodically updated. In 2017 -18, the amount was MXN 16,816 million; in 2018 -19, 
MXN 18,211 million; and in 2019 -20, MXN 19,559 million (Article 9 of the LI E and the Third General Resolution 
determining the amount of the total value of the assets referred to in Article 9 of the LIE (Official Journal 
of 7 May 2020)).  
74 Ministry of Economic Affairs, "Preguntas Frecuentes" . Viewed at: https://www.gob.mx/se/acciones -y-
programas/competitividad -y-normatividad -inversion -extranjera -directa?state=published . 
75 Articles 18 -20 of the LIE.  WT/TPR/S/429 • Mexico  
 
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  recognized by the Constitution, the Executive may issue declarations of public interest to expropriate 
private assets.76 
Table 2.5 Private property regime for foreigner s, 2017 -22 
 Foreign natural and legal persons  Mexican companies with 
majority foreign capital  
Restricted 
areaa They may not purchase immovable property (for 
example, land), regardless of whether it is for 
residential or non -residential purposes. However, they 
may enjoy the usufruct of residential property, and 
conclude a trust contract with a bank established in 
Mexico (duration of the contract: 50 years, renewable 
indefinitely for equal periods of time)c. They may buy residential and 
non-resident ial immovable property, 
provided that they invoke the Calvo  
Doctrine.b The purchase of 
non-residential property must be 
notified to the Ministry of Foreign 
Affairs.  
Rest of 
territory  They may purchase residential and non -residential immovable property, provided that they 
invoke the Calvo Doctrine.b 
a Within 100  km of the country's borders and within 50  km of any coastline.  
b Moreover, foreigners from States with which Mexico does not have diplomatic relations require a 
permit from the Ministry  of Foreign Affairs.  
c The trust contract must be registered with the RNIE.  
Source:  Article 27 of the Political Constitution of the United Mexican States; Articles 10 and 10 -A of the LIE; 
and the Ministry  of Foreign  Affairs.  Viewed  at: https://sre.gob.mx/permiso -para-constituir -un-fideico
miso-en-zona-restringida ; https://sre.gob.mx/convenio -de-renuncia -para-la-adquisicion -de-bienes -i
nmuebles -fuera-de-zona-restringida ; and https://sre.gob.mx/aviso -de-adquisicion -de-inmuebles -por
-sociedades -mexicanas -con-clausula -de-admision -de-extranjeros -en-la-zona-restringida -que-se-dest
inen-a-un-fin-no-residencial . 
2.50.   Foreigners may set up commercial companies in Mexico or establish branches or 
representative offices. There are seven types of commercial structure, which are regulated by the 
General Law on Commercial Companies (LGSM), namely: the general partnership ( la soc iedad en 
nombre colectivo ); the limited partnership ( la sociedad en comandita simple ); the limited liability 
company ( la sociedad de responsabilidad limitada or SRL); the public limited company ( la sociedad 
anónima or SA); the partnership limited by shares  (la sociedad en comandita por acciones ); the 
cooperative ( la sociedad cooperativa ); and the simplified joint -stock company ( la sociedad por 
acciones simplificada ).77 The most -used types are SAs and SRLs.78 The former can be transformed 
into investment promotion companies (SAPI), which are regulated by the LGSM and the Securities 
Market Law.79 
2.51.   In Mexico, the company name or trade name (words, letters or symbols) must be approved 
by the Ministry of Economic A ffairs, which is the first step in setting up a company (Chart 2.3). The 
use of a company name or trade name shall be denied if it is the same as or similar to that of another 
company or registered trademark in Mexico.80 To establish branches and representative offices, 
foreigners must appoint a legal representative with Mexican nationality or a foreigner with 
permission to work in Mexico. Furthermore, with some exceptions, authorization from the Ministry 
of Economic Affa irs is required to establish branches and representative offices.81 
 
76 Article 27 of the Political Constitution of the United Mexican States; and Article 2 of the Law on 
Expropriation (Official Journal of 25 November 1936, latest amendment of 27 January 2012).  
77 Law on Commercial Companies (Official Journal of 4 August 1934,  latest amendment 
of 14 June 2018). In 2018, the procedures to dissolve or liquidate companies were reviewed.  
78 Ministry of Economic Affairs. Viewed at: 
https://www.gob.m x/cms/uploads/attachment/file/202336/Sociedades..pdf . 
79 Securities Market Law (Official Journal of 30 December 2005, latest amendment of 9 January 2019).  
80 Government of Mexico. Viewed at: https://mua.economia.gob.mx/mua -web/preguntasFrecuentes . 
81 Article 17 of the LIE; Notice for the establishment of foreign legal persons in the Mexican Republic. 
Viewed  at: https://www.gob.mx/cms/uploads/attachment/file/692124/aviso_de_establecimiento_de_personas
_morales_extranjer as_en_la_republica.._.pdf ; and Notice for the establishment of foreign legal persons in the 
Mexican  Republic  for the provision  of services.  Viewed  at: https://www.gob.mx/cms/uploads/attachment/file/6
92125/aviso_establecimiento_personas_morales_extranjeras_republica_mexicana_prestacion_servicios.pdf . WT/TPR/S/429 • Mexico  
 
- 52 - 
 
  Chart 2.3 Steps to setting up a company  
 
Source:  Government of Mexico. Viewed at: https://www.g ob.mx/tuempresa . 
 
 
STEP 1Request 
authorization 
to use the 
company name 
or trade name
STEP 2Incorporate 
the company
STEP 3Obtain notice 
of use of the 
company name 
or trade name
STEP 4Register with 
the Public 
Registry of 
Commercial 
Entities 
STEP 5Register with 
the Federal 
Taxpayers 
Registry
STEP 6
 STEP 7Register with 
the Mexican 
Social Security 
Institute Register with 
state and 
municipal 
bodies, 
depending on 
the type of 
activityWT/TPR/S/429 • Mexico  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Registration, documentation and customs procedures  
3.1.  The legal framework governing Mexico's customs procedures comprises chiefly the Customs 
Law and its implementing Regulations, the Foreign Trade Law (LCE) and its implementing 
regulations, the General Foreign Trade Rules published each year by the Tax Administration Service 
(SAT), the general rules and criteria in respect of foreign trade issued by the Ministry of Economic 
Affairs (SE), and resolutions concerning customs -related provisions of Free Trade Agreements, 
issued by the Ministry of Finance and Public Credit (SHCP).1 The legal framework also includes 
legislation governing domestic and imp ort taxes.2 
3.2.  Until 2021 the General Customs Administration (AGA), a unit of the SAT, was responsible 
inter alia for facilitating and controlling the entry (and exit) of goods into (and from) Mexican  
territory, as well as for applying customs and fiscal provisions governing the entry (or exit) of goods. 
The Mexican National Customs Agency (ANAM) was established in 2021, replacing the AGA. Like its 
predecessor, ANAM is responsible for managing, organizing and operating customs and inspection 
service s, applying and enforcing the legal rules governing the entry (and exit) of goods into (and 
from) Mexican territory, and collecting tariffs and other duties related to foreign trade operations.3 
The SE also has influence over the entry (and exit) of goods  into (and from) Mexican  territory, as it 
lays down measures governing or restricting the import (or export) of goods, and on the movement 
or transit of foreign goods in Mexican territory. Various other authorities also participate in the 
process, includin g the Ministries of Health (SSA), National Defence (SEDENA), Environment and 
Natural Resources (SEMARNAT) and Agriculture and Rural Development (SADER), in connection with 
their responsibilities to award permits, licences, authorizations or certificates fo r imports (or 
exports).  
3.3.  Reflecting the changes referred to above, since 2022 customs clearance for imports (and 
exports) of goods has been conducted by ANAM. ANAM is specifically responsible for verifying the 
data contained in requests, declarations or sta tements, including verification of origin, for collecting 
taxes and customs clearance fees, and for verifying compliance with non -tariff regulations and 
restrictions. ANAM is also responsible for seizing or detaining goods whose lawful presence in the 
country cannot be established and for safekeeping those goods in its capacity as their custodian.4 
3.4.  Mexican import requirements have not changed significantly since the previous review in 2017. 
The declaration accompanying the goods presented to customs for en try into (or exit from) Mexico 
must state the customs procedure intended to be used. Mexico has six types of customs procedure: 
outright importation (exportation); temporary importation (exportation); in -bond storage; goods in 
domestic or international tra nsit; manufacturing, processing or repair in an in -bond facility; and 
strategic in -bond facility.5 
3.5.  Importers must be enrolled in the Federal Register of Taxpayers. Any natural or legal person 
conducing import operations must also be listed in the Register  of Importers.6 Importers of certain  
 
1 Customs Law (Official Journal of 15  December  1995, most recent amendment of 12  November 2021); 
Regulations implementing the Customs Law (Official Journal of 20 April 2015); Foreign Trade Law 
(Official  Journal of 27  July 1993, most recent amendment of 21  December  2006); Regulations implementing 
the Foreign Trade Law (Official Journal of 30  December  1993, most recent amendment of 22  May 2014); and 
General Foreign Trade Rules for 2022 (Official Journal of 24  December 2021, most recent amendment 
of 2 March 2022).  
2 Law on General Import and Export Taxes (Official Journal of 1  July 2020, most recent amendment 
of 22 November 2021, repealing the law published in the Official Journal of 18  June 2007) and Federal Law on 
Duty (Official Journal of 31  December  1981, most recent amendment of 12  November  2021).  
3 Decree establishing the Mexican National Customs Agency as a decentralized administrative body of 
the Ministry of Finance and Public Credit (Official Journal of 14  July 2021).  
4 Decree amending and supplementing various provisions of the Internal Regulation s of the Ministry of 
Finance and Public Credit and the Internal Regulations of the Tax Administration Service, and issuing the 
Internal Regulations of the National Customs Agency of Mexico (Official Journal of 21  December 2021).  
5 Articles  90-135 of the Cu stoms Law; and information available online. Viewed at: 
http://omawww.sat.gob.mx/aduanasPortal/Paginas/index.html#!/regimenes . 
6 Article  59(IV) of the Customs Law.  WT/TPR/S/429 • Mexico  
 
- 54 - 
 
  products (classified under 16 HS Chapters) must also be enrolled in the Register of Importers in 
Specific Sectors.7 The products subject to this requirement vary depending on the risk models drawn 
up by the customs au thorities for each product. However, importers of goods such as orthopaedic 
equipment and some agricultural inputs and machinery do not require any enrolment at all.8 The 
authorities are of the view that these registers allow them to exercise greater control over importers, 
foreign trade operations and compliance with tax obligations while enabling them to prevent and 
detect customs fraud, including smuggling. Importer  registrations can be suspended in the event of 
failure to fulfil the requirements laid down in customs and related regulations.9 
3.6.  It is necessary in Mexico to employ a customs broker, a customs agency or a legal 
representative because importers are not pe rmitted to conduct customs clearance formalities 
first-hand. The importer's customs broker, customs agency or legal representative, who must hold 
Mexican nationality, provides the import declaration and presents it electronically together with the 
other su pporting documents: commercial invoice; bill of lading, air waybill or transport document; 
and, where necessary, documentation showing compliance with any applicable non -tariff regulations 
and/or restrictions, as well as the source and origin of goods in c ases where tariff preferences, 
countervailing duties, quotas or country -of-origin marking requirements are applicable. For goods 
that present a potential risk to public health or national security, and for products of animal or plant 
origin, documents enab ling the identification, examination and control of the goods must also be 
attached together with any plant and animal health certificates. The documents are processed 
through the Single Window for Mexican Foreign Trade (VUCEM) (previously known as Mexico' s Digital 
Window for Foreign Trade (Digital Window)), which was modernized in 2018. Users send information 
once, electronically, to carry out importation procedures and satisfy the various relevant non -tariff 
regulations and restrictions for foreign trade issued by 10  government bodies: SAT, the 
Directorate -General of Standards (DGN), SADER, SEMARNAT, SEDENA, SSA, the Ministry of Energy 
(SENER), the Federal Environmental Protection Agency (PROFEPA), the National Institute of Fine 
Arts and Literature (INBAL) , the National Institute of Anthropology and History (INAH) and 
two regulatory bodies – the Mexican Coffee Production Chain Association (AMECAFE) and the 
Regulatory Board for Tequila (CRT).10 
3.7.  Imports are subject to a customs processing fee (DTA), which var ies according to the customs 
procedure applicable to the goods and in some cases is calculated on the f.o.b. value of the imports 
(Table 3.1). Some imports, such as natural gas, are exempt from payment of this fee11, as are goods 
originating in States Part ies to the following trade treaties or agreements: the  
Mexico -United  States -Canada Agreement (T -MEC), the Free Trade Agreement between the 
Republic  of Chile and the United Mexican States (TLCCH), the Free Trade Agreement between the 
United Mexican States a nd the Republic of Colombia (TLCC), Economic Complementarity 
Agreement  No. 66 between the United Mexican States and the Plurinational State of Bolivia 
(ACE No. 66) and the Free Trade Agreement between the United Mexican States and the Republics 
of Costa Ri ca, El  Salvador, Guatemala, Honduras and Nicaragua (TLCCA).12 The DTA is paid in the 
form of the general import tax (IGM) or the general export tax (IGE). Where the imports (or exports) 
are exempt from duty, the DTA is paid when the goods are removed from the in -bond facility.13 
 
7 These products include chemical, radioactive and nuclear products; chemical precursors; firearms and 
knives, parts thereof, ammunition; explosives and explosive -related material; chemicals, material for 
pyrotechnical use or for fireworks involving explosi ves; cold steel weapons, accessories and exploders; 
weapons -related machinery, appliances, devices and artefacts and others; cigars; footwear; textiles and 
made -up articles; ethyl alcohol; hydrocarbons and fuels; iron and steel materials and products; and 
automotive products (Annex 10 to the General Foreign Trade Rules for 2022 (Official Journal 
of 6 January  2022)). Information viewed at: https://www.sat.g ob.mx/normatividad/14537/reglas -generales -
de-comercio -exterior -(rgce) . 
8 Annex 7 to the General Foreign Trade Rules for 2022 - Inputs and various goods related to the 
agricultural sector referred to in Rule 1.3.1(XI) (General Foreign Trade Rules for 2022: Rule  1.3.1). Viewed at: 
https://www.sat.gob.mx/normatividad/14537/reglas -generales -de-comercio -exterior -(rgce). 
9 Article  144 (XXXVI) of the Customs Law and Rule  1.3.3. Grounds for suspension from the registers 
under the General Foreign Trade Rules for 2022 of 24  December 2021.  
10 Information on the Single Window. Viewed at: 
https://www.ventanillaunica.gob.mx/vucem/ventanillaunica.html . 
11 Federal Revenue Law for fiscal year 2022 (Official Journal of 12  November 2021).  
12 Rule 5.1.4. of the General Foreign Trade Rules for 2022 of 24  December 2021.  
13 Article  49 of the Federal Law on Duty.  WT/TPR/S/429 • Mexico  
 
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  Table 3.1 Customs processing fee (DTA) rates, 2022  
Type of import or procedure  Rate of duty 2022 (2016)  
Outright importation procedure  0.008% of the value of the goods  
Temporary import of fixed assets by in -bond assembly plants 
(maquiladoras) or firms with export programmes authorized by 
the SE 0.176% of the value of the goods  
Import of machinery and equipment under the in -bond-facility 
manufacturing, processing or repa ir procedure  
Temporary import of goods for manufacturing, processing or repair 
in enterprises with Manufacturing, Maquila and Export Services 
Industry (IMMEX) programmes  MXN 352 (287)  
Import of goods exempt from trade taxes  
Operations involving the return of imported goods  
Temporary import of goods to be returned in their original state  
Imports under the in -bond-facility manufacturing, processing or 
repair procedure or under the respective return procedure  
Import of goods having no customs value  
Operations carried out by foreign States  MXN 346 (287)  
Domestic transit  MXN 352 (287)  
International transit  MXN 335 (273)  
Extraction from the procedure for in -bond storage for return  MXN 352 (287)  
Rectification of import declaration  MXN 339 (276)  
Gold imports  0.008% of the value of the gold  
(not exceeding MXN  3,734 (3,043))  
Source:  Article  49 of the Federal Law on Duty and Annex  19 to the Omnibus Tax Resolution for 2022 (Official  
Journal of 27  December  2021). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5639466&fecha=27/12/2021 . 
3.8.  Once the taxes have been paid, the non -tariff requirements satisfied and the declaration 
validated through the Electronic Customs System, the Automated Selection Module (MSA) that 
determines whether a customs inspection is required, is activated.14 If the MSA determines that no 
customs inspection is required, the goods are cleared immediately. In the event that the MSA 
determines that an inspection is required, the customs authority to which the goods are presented 
inspects the documents and conducts a physical inspection in the in -bond facility.15 If no 
irregularities that might give rise to a preventive embargo on the goods are detected, the goods are 
released immediately.16 A preventive embargo on the goods may be replaced by security in 
accordance with the provisions of the Federal Tax Code.17 Irrespective of the outcome of the MSA, 
the customs authority reserves the right to order verification of the goods or to exercise any of its 
inspection powers.  
3.9.  According to data provided by the authorities, during the period from 2017 
to 2021,  9.34% of import transactions were subje ct to customs inspection. Of this 
percentage,  0.29% led to a preventive embargo of goods. The time required for customs clearance 
is usually 2.62  hours for goods subject to customs inspection and 9.1  minutes for goods not subject 
to this requirement.  
3.10.   Durin g the review period, changes were made regarding registration in the Comprehensive 
Enterprise Certification Scheme. As a result, since 2018 it has been possible to use Authorized 
Economic Operator (AEO) arrangements to register businesses involved in outso urcing logistics 
services and general deposit warehouses. The concept of certified commercial partner (SCC), which 
covers natural or legal persons who are involved in the logistics chain as providers of import (or 
export) services, was strengthened and the  period of validity of certification was increased from 
 
14 The mechanism makes a random selection of customs declaration s for inspection. This is based on an 
intelligent risk analysis system that takes into account information on the type of importer (exporter), the 
product, its value, the country of origin, and the risks associated with plant and animal health, national 
security, smuggling and fraud.  
15 Article 43 of the Customs Law.  
16 Article  151 of the Customs Law lists the circumstances in which the customs authorities will impose a 
preventive embargo on goods.  
17 Article  154 of the Customs Law.  WT/TPR/S/429 • Mexico  
 
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  one year to two.18 At 31  December  2020 there were 1,123  certified businesses: 651 AEOs, 428  SCCs 
and 44 marketing and importing companies.19 
3.11.   VAT and IEPS (special tax on production and services) certi fication is used to award taxpayers 
who import goods under the temporary import procedure a 100 % tax credit for the VAT and IEPS 
that their temporary imports generate.20 At 31 December  2020, 3,467 businesses held VAT and IEPS  
certification. The bulk of the m imported goods for use under the IMMEX programme (3,425) or under 
import procedures such as in -bond storage (21); strategic in -bond facility (20); and manufacturing, 
processing or repair in an in -bond facility (1). The sectors that are the chief benefici aries of 
certification include auto parts, electronics, metalworking, plastics and rubber, textiles and clothing 
and the electricity sector.21 
3.12.   During the review period, Mexico continued to implement trade -facilitation measures such 
as (a) electronic custom s clearance (paperless customs), via presentation of an electronic 
declaration; (b)  establishment of conditions for implementing customs clearance using consolidated 
declarations; and (c) modernization of the VUCEM. Moreover in 2021, Mexico established the  
National Trade Facilitation Committee to implement the WTO Agreement on Trade Facilitation.  
3.13.   Additionally, owing to the COVID -19 emergency, import procedures were eased to enable the 
Ministries of Health, Defence and the Navy, the Institute of Health for W ell-being, the Mexican Social 
Security Institute and the Social Security and Social Services Institute for State Workers to obtain 
the goods and services required to address the situation, for example medical equipment, diagnostic 
agents, surgical and ther apeutic material and hygiene products.22 
3.1.2   Customs valuation  
3.14.   Since the last review in 2017, the procedures for determining the customs value of imported 
goods have not undergone any substantive changes. The customs value is determined in accordance 
with the WTO Agreement on Customs Valuation and the Customs Law. In general, the customs value 
is the transaction value, and when it is not possible to determine the customs value on that basis, 
the alternative methods of valuation set out in the WTO Agreement are used (Articles 65 -71 and 78 
of the Customs Law).  
3.15.   Since 2018, importers have been required to supply their customs clearance broker or agency 
with a manifest setting out the information necessary to determine the customs value of the goods. 
The importer  must keep the manifest in a digital format and obtain the information, documents and 
other evidence needed to verify that the declared value has been determined in conformity with the 
law, and provide that evidence to the customs authorities should they s o require (Article  59 of the 
Customs Law).23 This change was introduced so that the customs authority can verify the declared 
value and determine the customs value when the data concerning a supplier abroad or the importer's 
tax residence are false or unav ailable. Importers have the right, prior to the release of the goods, 
to request the reasons for selecting the valuation method or information used to determine their 
 
18 Decree amending, suppleme nting and repealing various provisions of the Customs Law 
(Official  Journal  of 25 June 2018).  Viewed  at: http://dof.gob.mx/nota_detalle.php?codigo=5528958&fecha=25/
06/2018 ; General Foreign Trade Rules 2018. Viewed at: https://www.sat.gob.mx/normatividad/97466/reglas -
generales -de-comercio -exterior ; and General Foreign Trade Rules 20 20. Viewed at: 
https://www.sat.gob.mx/normatividad/36272/reglas -generales -de-comercio -exterior -(rgce). 
19 Information provided by the authorities.  
20 Temporary import operations have generated VAT and IEPS since 1  January 2014 (Decree 
amending,  supplementing and repealing various provisions of the Law on Value -Added Tax, the Law on the 
Special Tax on Production and Services and the Federa l Law on Duty; enacting the Law on Income Tax; and 
repealing the Law on the Flat -Rate Business Tax and the Law on the Tax on Cash Deposits (Official Journal 
of 11 December  2013)).  
21 Information provided by the authorities.  
22 Decision establishing extraordi nary measures that must be taken to procure and import the goods 
and services referred to in Article 2(II and III) of the Decree establishing extraordinary health measures in 
regions affected throughout the national territory in response to high -priority s evere illness caused by 
the SARS -CoV2 virus (COVID -19), published on 27  March 2020 (Official Journal of 3  April 2020, most recent 
amendment of 22  October 2020).  
23 Articles  59(III), 66 and 78 -A of the Customs Law, as amended by the Decree published in the 
Official Journal of 25  June 2018.  WT/TPR/S/429 • Mexico  
 
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  goods' customs value (Article  78-B of the Customs Law). According to the authorities, in the majority 
of cases (72.5 % in 2021) the transaction value was used.  
3.16.   Mexico still uses estimated prices to value certain goods in order to prevent undervaluation 
and tax evasion. The prices cannot be used to determine the tax base for tariffs because they  act 
solely as a benchmark to identify when the value declared in an import declaration is lower than the 
value of the goods, and to determine the sum that must be deposited by way of security in case of 
potential tax implications. Importers must deposit a  security in order to import any goods on the 
basis of an estimated price. Since 2019, estimated prices have been used for imports of footwear, 
textiles and clothing, and the law allows them to be used also for vehicles, regardless of the origin 
of the imp orts.24 
3.1.3   Rules of origin  
3.17.   Mexico still uses preferential and non -preferential rules of origin. As in 2017, non -preferential 
rules of origin are used to determine the origin of imports subject to anti -dumping or countervailing 
duties, in order to prevent circ umvention by means of reshipment of goods through third countries.25 
3.18.   In general, the preferential rules of origin in agreements that have entered into force 
since 2017 follow the same lines as those in the agreements previously signed by Mexico. Since that 
date, Mexico has also used the preferential rules provided for in the following trade 
agreements:  T-MEC; the Comprehensive and Progressive Agreement for Trans -Pacific Partnership 
(CPTPP); and the Trade Continuity Agreement between Mexico and the Unite d Kingdom.26 
3.19.   The criteria conferring origin may be general or specific. The use of non -originating materials 
that do not comply with the change of classification is permitted provided that they do not exceed a 
given percentage of the total cost or weight o f the good or, in the case of textiles, the total weight. 
The agreements entered into by Mexico authorize cumulation, including extended cumulation, which 
allows the use of inputs originating in non -party States with which the Parties in turn have a trade 
agreement (Table 3.2).  
Table 3.2 Rules of origin under the regional trade agreements that have entered into 
force since 2017  
 
T-MEC CPTPP  United  Kingdom  
Criteria of 
origin  (a) Goods wholly obtained or produced entirely in the territory of the Parties.  
(b) Goods produced entirely in the territory of the Parties exclusively from originating 
materials.  
(c) Goods produced entirely in the territory of the Parties with non -originating materials 
that comply with the criteria established in the specific rules of origin, i.e. change of tariff 
classification or minimum percentage of value of regional content.  
Tolerance rule  10% of the transaction value  
Tolerance rule 
for textiles  10% of total 
weight, 7% 
elastomers.  10% of total weight, 
elastomeric yarn has to be 
wholly formed in the territory 
of the Parties.  8% or less of total weight, applies 
only to mixed products which have 
been made from two or more basic 
textile materials.a 
 
24 Resolution amending Annexes 2,  3 and 4 of the miscellaneous provision establishing the mechanism 
to guarantee the payment of taxes on goods subject to prices estimated by the SHCP (Official Journal 
of 24 December 2020). V iewed at: https://www.dof.gob.mx/2020/SHCP/SHCP_1_03_241220.pdf . 
25 Decision amending the miscellaneous provision establishing the rules for the determination of the 
country of origin of imported goods and provisions for their certification, with respect to anti -dumping and 
countervailing  duties  (Official  Journal  of 16 October  2008).  Viewed  at: http://dof.gob.mx/nota_detalle.php?codi
go=5064504&fecha=16/10/2008 ; Decree granting administrative facilities for customs and foreign trade 
purposes  (Official  Journal  of 31 March  2008).  Viewed  at: https://www.dof.gob.mx/nota_detalle.php?codigo=50
32270&fecha=31/03/2008 ; and Decree amending the miscellaneous provision granting administrative facilities 
for customs  and foreign  trade purposes  (Official  Journal  of 1 November  2012).  Viewed  at: http://dof.gob.mx/n
ota_detalle.php?codigo=5276246&fecha=01/11/2012 . 
26 Database  – Regional  Trade  Agreements.  Viewed  at: http://rtais.wto.org/UI/PublicMaintainRTAHome.a
spx; and WTO documents G/RO/N/183 and G/RO/N/210 of 15  April 2019 and 4 February 2021 respectively.  WT/TPR/S/429 • Mexico  
 
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T-MEC CPTPP  United  Kingdom  
Cumulation of 
origin  Extended cumulation of origin.b 
a Note 5 of the Introductory Notes to the List in Appendices  II and II(a) of the Economic Partnership, 
Political Coordination and Cooperation Agreement between the European Community and the 
United  Mexican States upon which the Trade Continuity Agreement between the 
United  Mexican  States and the United Kingdom of Great Britain and Northern Ireland is based. 
Information viewed at: 
http://www.dof.gob.mx/nota_detalle.php?codigo=5619907&fecha=01/06/2021 . 
b In respect of the Agreement with the United Kingdom, the cumulation criteria will cease to apply 
three years following the entry into force of the Agreement unless th e Parties agree to extend that 
period (Annex - Modifications to the Incorporated Agreement - Modifications to Annex III to 
Decision  2/2000, Article  3a, paragraph 7). Information viewed at: 
http://www.dof.gob.mx/nota_detalle.php?codigo=5619907&fecha=01/06/2021 ). 
Source:  WTO Secretariat.  
3.20.   In addition to product -specific rules, the T -MEC incorporates a Labour Value Content (LVC) 
for goods in the automotive sector unde r which passenger vehicles and trucks are regarded as 
originating only where a specific percentage of their value is produced by employees whose hourly 
base wage is at least USD  16.27 The LVC for light vehicles was set at 30 % for the period 2020 -22 
and wil l rise to 40 % from 2023; for trucks the percentage is 45 %.28 
3.1.4   Tariffs  
3.1.4.1   Structure and levels  
3.21.   The most important change to Mexico's tariff schedule during the review period was the 
reduction in the number of tariff lines. According to the authorities, the chan ge was needed in order 
to update obsolete tariff headings with low or zero trade flows and to implement the 
sixth amendment to the Harmonized System.29 In 2016, Mexico's tariff schedule 
contained  12,275  lines at the 8 -digit level of the HS 2012, whereas in  2021 it contained 7,802 lines 
at the 8 -digit level of the HS  2017.30 
3.22.   In general, Mexico applies ad valorem  tariffs, with the exception of 45 tariff lines (0.6 % of 
the total). Of these lines, 36 have compound tariffs, and 9 have specific tariffs; both type s of tariff 
continue to apply to the same category  of products as in 2016.31 
3.23.   Mexico continues to apply seasonal tariffs to sorghum (HS 1007.90.01 -1007.90.02), soya  
beans (HS  1201.90.01 - 1201.90.02) and safflower seeds (HS 1207.60.02 -1207.60.03). As a resu lt, 
as in 2016, imports of these three products are duty -free during a specific period of the year, but 
outside this period sorghum and soya beans are subject to a 15 % tariff and safflower seeds to 
a 10% tariff.  
3.24.   The average applied MFN tariff rose during t he review period , from 5.5 % in 2016 to 6.7 % 
in 2021 (Table 3.3). The rise can be attributed to the fall in the number of zero -rated tariff lines, the 
rise in the number of lines subject to rates of between 0 % and 15 % (Chart  3.1), and the general 
 
27 The LVC does not take into account the salaries of workers who are not involved directly in 
production, such as those working in the fields of management, R&D or engineering.  
28 T-MEC - Annex  4-B, Appendix, Provisions Related to the Product -Specific Rules of O rigin for 
Automotive Goods, Article  7. Viewed at: http://dof.gob.mx/2020/SRE/T_MEC_290620.pdf . 
29 Decree containing the Law on General Import and Export Taxes and amending and  supplementing 
various  provisions of the Customs  Law (Official Journal of 1  July 2020). Viewed at: 
https://www.snice.gob.mx/cs/avi/snice/nuevaligie.instrumentacion.html . 
30 The tariff line totals include 41 headings that have no tariff rate because the import of the products in 
question is prohibited.  
31 Compound tariffs are applied to products such as: milk and milk components, cream and whey, 
containing added sugar (HS 0402 and 0404); dairy  spreads (HS 0405); frozen fruit and nuts and other fruit 
and nuts containing added sugar (HS 0811); molasses (HS 1703); sugar confectionery (HS 1704); chocolate 
and other food preparations containing cocoa (HS 1806); food preparations of flour, groats and  cereal 
products, baker's products (HS 1901; 1904 and 1905); other food preparations (HS 2106); jams and jellies 
(HS 2006 and 2007); ice cream (HS 2105); mineral water (HS 2202); ethyl alcohol (HS 2207); and citric acid 
esters (HS 2918). Specific tariffs a pply to products such as sugar (HS  1701); cocoa powder (HS  1806); 
flavoured syrups (HS  2106); and used pneumatic tyres (HS  4012).  WT/TPR/S/429 • Mexico  
 
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  reduction in the number of tariff lines. Despite the rise in the average tariff, the protection afforded 
to agricultural products (WTO definition) fell from 14.3 % in 2016 to 13.2 % in 2021. As in 2016, 
non-agricultural products are sub ject to a lower average tariff than agricultural products. This tariff 
nonetheless rose during the review period from 4.6 % to 5.9 %. 
Table 3.3 Structure of MFN tariffs, 2016 and 2021  
(%) 
 2016  
(HS 12)  2021  
(HS 17)  
Total number of tariff lines  12,275  7,802a 
Ad valorem rates (> 0%)  5,060  4,015  
Rate of 0%  7,137  3,701  
Non-ad valorem  rates 59 45 
Non-ad valorem  tariffs (% of tariff lines)  0.5 0.6 
Non-ad valorem tariffs without ad valorem  equivalents (% of tariff lines)  0.4 1.5 
Simple average (%)  5.5 6.7 
Agricultural products (WTO definition)  14.3 13.2 
Non-agricultural products (including petroleum, WTO definition)  4.6 5.9 
Tariff quotas (% of tariff lines)  1.0 1.5 
Lines with zero tariffs (% of tariff lines)  58.1 47.4 
Average of lines above zero (%)  13.3 12.9 
Domestic tariff peaks (% of tariff lines)b 9.8 2.1 
International tariff peaks (% of tariff lines)c 9.8 9.7 
Overall standard deviation of applied rates  8.8 8.4 
Bound tariff lines (% of tariff lines)  100.0  100.0  
a Includes 41 lines that have no tariff rate because the import of the products in question is 
prohibited.  
b Domestic tariff peaks are defined as rates that are more than three times the overall simple average 
rate. 
c International tariff peaks are defined as rates above 15 %. 
Note:  The average takes into account the ad valorem  equivalents (AVEs) for lines subject to 
non-ad valorem  tariffs. The AVEs were estimated on the basis of the unit values of total imports 
in 2020 for 2021, as provided by the Mexican authorities. As in 2016, the analysis for 2021 excluded 
compound duties from the calculation (44 lines in 2016 and 36 lines in 2021).  
Source:  WTO Secretariat calculations, based on data provided by the authoriti es. 
3.25.   On average, the highest duties by WTO category continue to be applied to agricultural 
products, specifically sugar and confectionery, and to dairy products, with tariffs of 30 % (40.9 % 
in 2016) and 22.1 % (40.9 % in 2016), respectively (Table A3.1). The average applied tariff on 
animals and animal products fell from 24.8 % in 2016 to 15.5 % in 2021. Average tariffs applied to 
non-agricultural products have not changed significantly since 2016, despite increases for almost all 
products except fish and fish products (13.8 % in 2021 and 15.5 % in 2016); however, the products 
with the highest average tariff are fish and fish products and clothing (21.4 % in 2021 and 21 % 
in 2016).  
3.26.   Excluding compound tariffs, the tariffs appl ied in 2021 ranged between 0 % and 75 % (100% 
in 2016). The most frequent tariff rate is the zero rate, which applies to 47.4 % of tariff lines (58.1 % 
in 2016) (Chart 3.1). In January  2021, tariff lines with an ad valorem  tariff higher than zero were 
subject to 15 different rates (18 in 2016), ranging from 3 % to 75 % (in 2016 the highest tariff 
was 100%).32 Other than 0 %, the most common rates in 2021 were 15 % (1,255 lines or 16.1 % of 
the total), 10 % (969 lines, 12.4 %) and 5% (849 lines, 10.8 %).33 In 2021, 96.7 % of tariff lines were 
subject to a tariff of 20 % or less (98 % in 2016). Tariffs above 25 % (namely 30 %, 36%, 45%, 50%, 
67% and 75 %) were applied in particular to agricultural products as well as footwear (30 %) and 
motor vehicles and tractors (50 %). 
 
32 The rates were: 3 %; 5%; 6%; 7%; 9%; 10%; 15%; 20%; 25%; 30%; 36%; 45%; 
50%; 67% and 75%. 
33 Apart from 0 %, the most common ra tes in 2016 were also 15 % (1,337 lines), 10 % (1,274  lines) 
and 5% (1,013 lines).  WT/TPR/S/429 • Mexico  
 
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  Chart 3.1 Frequency distribution of tariffs, 2016 and 2021  
(% of all tariff linesa) 
 
a The total number of lines is 12,275 in the 2016 tariff schedule and 7,802 in the 2021 tariff schedule.  
Note:  Line totals do not add up to 100 %, as compound tariff lines (44 additional lines in 2016 and 36 
in 2021) were excluded from the calculations and 0.5 % concern prohibited lines that therefore 
carried no tariff in 2021 (0.2 % in 2016).  
Source:  WTO Secretariat calculations, based on data provided by the authorities . 
3.27.   Mexico bound all its tariff lines in the Uruguay Round.34 Both the bound and the applied tariff 
contain non -ad valorem  duties. All bound non -ad valorem  tariffs are mixed. Nonet heless, a tariff line 
may have an applied ad valorem , specific or compound  tariff without necessarily being bound at that 
same tariff rate. According to the authorities however, each and every one of the tariffs complies 
with the bound limit. Non -ad valore m bound tariffs are applied to 91  lines.35 The compound tariffs 
have a specific component and an ad valorem  component that acts as a minimum tariff; the 
ad valorem  component ranges from 47 % to 254 %. Accordingly, tariff bindings range from 0 % 
to 254% if only the ad valorem  share of the tariffs is included. Leaving compound tariffs aside, for 
ad valorem  tariff rates only, the bindings range from 0 % to 72 %. The highest rate is 72 % and is 
applied to coffee (HS  0901), followed by 67.5 % for tobacco and cigars (HS  2402 and 2403) and  50% 
for 185  tariff lines and parts of tariff lines in the HS 2012 nomenclature. When ad valorem  and 
non-ad valorem  rates are taken into account, about 76 % of the total were bound at 35 %, 10% at 
levels below 35 %, and the remainder at levels above 35 %. 
3.28.   The MFN applied tariff would appear to exceed the bound tariff only for one subheading of 
HS tariff line 7009.91.99 (other glass mirrors) as one part of the subheading is bound at 10 % and 
the other at 35 %, whereas the MFN tar iff is 15 % (Table  3.4).36 
 
34 Mexico's bound tariff is in the HS 2012 nomenclature.  
35 Products such as meat and offal; milk and dairy products; potatoes and dried leguminous vegetables; 
cereals; animal o r vegetable fats and oils; sugars and confectionery; cocoa and cocoa preparations; and other 
food preparations.  
36 This finding was made by comparing the applied MFN tariff (2021) and the bound tariff, taking into 
account only those lines that are strictly comparable because of the change in nomenclature or the use of a 
different type of tariff ( ad valorem , compound or mixed) depending on whether the tariff in question was 
applied or bound.  
58.1%
8.5%12.1%10.9%
8.2%
0.7% 0.9%47.4%
11.1%14.7%16.1%
7.6%
1.1% 1.0%
010203040506070
0% >0%-5% >5%-10% >10%-15% >15%-20% >20%-25% >25%Tariff 2016 (HS 2012)
Tariff 2021 (HS 2017)WT/TPR/S/429 • Mexico  
 
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  Table 3.4 Tariff lines for which the applied MFN tariff is higher than the bound 
tariff,  2021  
HS Code  Description  MFN tariff  
(%) Bound tariff  
(%) 
7009.91.99  Other glass mirrors  15  
Subheadings:  
7009.91.99  For use in aircraft   10 
7009.91.99  Other   35 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.4.2   Tariff quotas  
3.29.   Mexico continues to use three kinds of tariff quotas: those negotiated under the WTO, 
preferential quotas negotiated under trade agreements and unilateral quotas.  
3.30.   Within the WTO framework, Mexico applies tariff quotas to products such as meat and edible 
offal, powdered milk, cheese, coffee, potatoes, beans, wheat, barley, maize, animal fats, sugar and 
products with a high sugar content. In 2021 as in 2015, most of these quotas were not used either 
because the applied MFN tariff was lower than the tariff for in -quota imports, or because market 
access conditions offer ed under a unilateral quota were more favourable, or else because Mexico's 
imports on preferential terms exceeded the WTO quota amount. Moreover, the volume of imports of 
these products is generally low (Table  A3.2).  
3.31.   Mexico has negotiated preferential quot as under its trade agreements with 
Argentina:  ACE No. 6 (56 tariff lines at the 8 -digit level of HS 2017) and ACE No.  55, Appendix 1 
(25 lines); Brazil: ACE  No. 53 (8 lines)37; Colombia (88 lines); Costa Rica (12 lines); Cuba: ACE No.  
51 (102  lines); El  Salvador  (7 lines); the European Union (3  lines) ; Guatemala (12 lines); Honduras 
(6 lines); Israel (11 lines); Japan (29 lines); Nicaragua (5 lines); Peru (38 lines); and Uruguay 
(21 lines). Mexico also negotiated preferential quotas under the C PTPP (Australia (28 lines); Canada, 
New Zealand, Singapore and Viet  Nam (20  lines); and Japan (19  lines)).  
3.32.   Mexico continues to establish fixed -term unilateral import quotas in order to boost the 
competitiveness of production chains, cope with price rises, satisfy domestic demand when there is 
a shortfall in the national supply or reduce the balance -of-payments deficit. To determine the volume 
or value of these quotas, the SE takes into account the domestic availability and supply of the 
product in question as well as the opinion of industry stakeholders and the Foreign Trade Commission 
(COCEX). The SE publishes in the Official Journal the total volume or value of the quota, licence 
application requirements, the quota -allocation procedure and the period of va lidity for non -automatic 
licences.  
3.33.   In 2021, Mexico had unilateral quotas for 77 HS 8-digit tariff lines comprising both  agricultural 
products and manufactures. Fourteen of those lines were also subject to tariff quotas within the 
framework of the WTO. For example, coffee, beef, pork and chicken, barley, beans and certain 
cheeses. For these products, the unilateral in -quota tariff was lower than for the WTO quota; the 
bulk of the quotas have a 0 % tariff. However, in 2021, imports under unilateral and WTO quo tas 
were low. The most used unilateral quota, accounting for 38.4 %, was for coffee extract, followed by 
the quota for fish fillets (31.4 %), chicken and turkey cuts (14.3 %) and dairy preparations (9.8 %) 
(Table  3.5 and Table  A3.3).  
Table 3.5 Tariff lines subject to unilateral and WTO quotas, 2021  
Heading (HS code)  In-quota tariff  Out-of-quota tariff (%)  
WTO (%)  Unilateral (%)  
Meat and edible offal of poultry  
0207.14.99  50 0 75 
0207.26.03  50 0 75 
0207.27.99  50 0 75 
0207.60.03  50 10 0 
 
37 The preferential quotas negotiated under ACE No. 55 with Brazil we re eliminated in 2019 
(Fifth  Additional Protocol to Appendix II Concerning Trade in the Automotive Sector between Brazil and 
Mexico).  WT/TPR/S/429 • Mexico  
 
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  Heading (HS code)  In-quota tariff  Out-of-quota tariff (%)  
WTO (%)  Unilateral (%)  
Cheese, hard and semi -hard 
0406.90.99  50 20 45 
Beans, other than for sowing  
0713.33.99  50 0 45 
Coffee  
0901.21.01  50 0 45 
0901.22.01  50 0 45 
0901.90.99  50 0 45 
Coffee extract  
2101.11.02  50 20 45 
2101.11.99  50 20 45 
2101.12.01  50 20 45 
Barley  
1003.90.99  50 0 0 
Dairy preparations  
1901.90.05  50 0 45 
Source:  WTO document G/AG/N/MEX/54 of 2  June 2021, and information provided by the authorities.  
3.34.   In general, quotas are allocated by public tender. However, the SE may choose to use other 
procedures such as direct allocation, "first  come, first served" or a mixed method. Allocation 
procedures may also be laid down in trade agreements or international conventions to which Mexico 
is party. In an y event, the procedures may not constitute a barrier to trade (LCE Article  24). 
Between  2017 and 2021, the most used methods were direct allocation and "first come, first served" 
(Chart  3.2).38 Once the quotas have been allocated, importers must obtain a n on-automatic import 
licence ("quota certificate") (LCE Article  15). A quota may be applied for by natural or legal persons 
established in Mexico who satisfy the requirements laid down by the SE for each quota. The 
application can be made through the VUCEM or in person at the federal branches and sub -branches 
of the SE. Currently, however, they are overwhelmingly made through the VUCEM.  
Chart 3.2 Quota distribution by method of allocation, 2017 -21 Q3  
(%) 
 
Sourc e: National Foreign Trade Enquiry Point (SNICE) . 
3.35.   Additionally, the SE may provide for "tariff -exempt" quotas where they are deemed 
necessary. In 2020, provisions were laid down waiving the tariffs on imports of milk in powder or 
 
38 National Foreign Trade Enquiry Point (SNICE). Information viewed at: 
https://www.snice.gob.mx/cs/avi/snice/cuposinfogeneral.html . 
514944
37 366
51321
1440
3836 34
4238 8 8 8
0102030405060708090100
2017 2018 2019 2020 2021T3
Direct allocation Public tender First come, first served Mixed(%)WT/TPR/S/429 • Mexico  
 
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  tablet form (HS  0402.10.01 and HS  0402.21.01) within the WTO quota, and on imports of goods 
subject to unilateral quotas (fish, tomatoes, onions, fruit, maize, rice, vegetable fats and oils, soya  
cake, cane molasses, some spirits and toys).39 In 2021, a tariff -free quota of 7,000 to nnes was 
placed on beef (fresh, chilled or frozen) to ensure supply and price stability in the domestic market; 
however, it would appear that this quota was not used.40 
3.1.4.3   Preferential tariffs  
3.36.   In 2021, Mexico had 28  trade agreements that granted originating imports preferential 
treatment.  
3.37.   The average preferential tariff in these free trade agreements (FTAs) is in all cases lower than 
the MFN tariff average.41 Average preferential tariffs range between 0 % and 3.2 %, as is the case 
for non -agricultur al products. The preferences granted for agricultural products are lower than those 
granted to non -agricultural products, and in some cases are very close to the MFN tariff (for example, 
with Norway). The preferential rates for agricultural products range between 0 % and 13 %. The 
duty-free status granted under all the agreements, except that with Panama and under the CPTPP, 
covers over  90% of the total tariff schedule, and in some cases (Chile, Nicaragua, United  States) 
even reaches 99 % or 100 % (Table 3.6). 
3.38.   The preferences granted under partial agreements cover less than 50 % of the total tariff 
schedule, with the exception of the agreement with the Plurinational State of Bolivia. The difference 
between the preference margin granted in these agreements a nd the average MFN tariff is not large.  
Table 3.6 Summary of preferential tariffs, 2021  
 
Number of 
preferential 
lines  
Preferential 
part of tariff 
(%) Total  WTO categories  
Agricultural 
products  Non-agricultural 
products (including 
petroleum)  
Average 
(%) Duty -free 
lines  Average 
(%) Duty -free 
lines  Average 
(%) Duty -free 
lines  
(%) (%) (%) 
MFN - - 6.7 47.4 13.2 21.8 5.9 50.8 
FTA 
Andorra  3,124  40.0 2.0 87.5 13.1 22.9 0.6 95.9 
Canada  3,994  51.2 0.2 98.6 1.8 91.9 0.0 99.5 
Chile 4,019  51.5 0.1 98.8 1.1 94.6 0.0 99.3 
Colombia  3,889  49.8 0.8 95.3 4.8 70.9 0.3 98.4 
Costa Rica  3,955  50.7 0.3 98.1 3.0 88.2 0.0 99.4 
El Salvador  3,898  50.0 0.5 97.2 3.1 86.2 0.2 98.7 
United States  4,015  51.5 0.0 99.5 0.0 99.2 0.0 99.5 
Guatemala  3,883  49.8 0.6 97.0 3.5 85.0 0.2 98.5 
Honduras  3,896  49.9 0.5 96.9 3.0 86.5 0.2 98.2 
Iceland  3,398  43.6 1.4 91.0 12.6 26.5 0.0 99.4 
Israel  3,162  40.5 1.9 87.9 12.5 26.7 0.6 95.9 
Japan  3,571  45.8 1.0 93.2 7.5 55.5 0.2 98.2 
Nicaragua  4,038  51.8 0.1 99.2 0.7 96.8 0.0 99.5 
Norway  3,369  43.2 1.5 90.6 13.0 23.3 0.0 99.4 
Panama  3,702  47.4 1.9 75.3 4.3 66.5 1.6 76.5 
Peru 3,840  49.2 0.6 96.6 4.3 78.5 0.1 99.0 
Switzerland  3,435  44.0 1.3 91.4 11.9 30.4 0.0 99.4 
European Union  3,813  48.9 0.6 96.3 5.0 71.6 0.0 99.5 
Uruguay  3,778  48.4 1.0 93.6 3.5 79.6 0.7 95.5 
Chile (Pacific 
Alliance  4,022  51.6 0.2 98.2 1.7 89.2 0.0 99.3 
Colombia (Pacific 
Alliance)  4,005  51.3 0.2 97.8 1.4 88.6 0.0 99.0 
 
39 Information viewed at: 
http://www.diputados.gob.mx/LeyesBiblio/ref/ligiex/LIGIEx_tarifa01_24dic20.pdf . 
40 The quota applies to the following types of meat: carcasses and half -carcasses (H S 0201.10.01); 
other cuts with bone in (HS  0201.20.99); boneless (HS  0201.30.01); carcasses and half -carcasses 
(HS 0202.10.01), other cuts with bone in (HS  0202.20.99); boneless (HS  0202.30.01) (Decision announcing 
the tariff for importing beef under the i ndicated tariff quota (Official Journal of 28  June 2021)).  
41 In the calculation of this average, the lower of the MFN tariff and the preferential tariff was used for 
each product, in order to reflect market access conditions more accurately.  WT/TPR/S/429 • Mexico  
 
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Number of 
preferential 
lines  
Preferential 
part of tariff 
(%) Total  WTO categories  
Agricultural 
products  Non-agricultural 
products (including 
petroleum)  
Average 
(%) Duty -free 
lines  Average 
(%) Duty -free 
lines  Average 
(%) Duty -free 
lines  
(%) (%) (%) 
Peru (Pacific 
Alliance)  4,022  51.6 0.2 98.2 1.7 89.2 0.0 99.3 
Australia (CPTPP)  3,894  49.9 2.8 71.6 3.0 79.1 2.8 70.6 
Canada (CPTPP)  3,894  49.9 2.8 71.6 3.0 79.1 2.8 70.6 
Japan (CPTPP)  3,894  49.9 2.8 71.4 3.0 79.1 2.8 70.4 
New Zealand 
(CPTPP)  3,894  49.9 2.8 71.6 3.0 79.1 2.8 70.6 
Singapore 
(CPTPP)  3,894  49.9 2.8 71.6 3.0 79.1 2.8 70.6 
Viet Nam 
(CPTPP)  3,303  42.3 3.2 71.6 3.3 79.1 3.2 70.6 
Partial scope agreements  
Argentina ACE 
No. 6  696 8.9 5.6 56.9 12.6 25.1 4.7 61.1 
Brazil ACE No. 53  115 1.5 6.5 47.9 12.2 25.7 5.8 50.8 
Cuba ACE No. 51 
(domestic 
market)  28 0.4 6.7 47.4 13.2 21.8 5.9 50.8 
Cuba ACE No. 51 
(border region)  3 0.0 6.7 47.5 13.2 21.8 5.9 50.8 
Cuba ACE No. 51 
(national 
territory)  938 12.0 5.5 56.7 11.1 30.7 4.8 60.1 
Argentina ACE 
No. 55  53 0.7 6.6 48.1 13.2 21.8 5.8 51.6 
Brazil ACE No. 55  93 1.2 6.6 48.6 13.2 21.8 5.7 52.2 
Uruguay ACE 
No. 55 91 1.2 6.6 48.6 13.2 21.8 5.7 52.1 
Plurinational 
State of Bolivia 
ACE No. 66  3,902  50.0 0.3 97.6 2.8 83.4 0 99.5 
Ecuador APR 29  187 2.4 6.5 48.1 13.1 22.3 5.6 51.5 
Other agreements  
Argentina PAR 4  3,172  40.7 5.8 47.4 11.3 21.8 5.1 50.8 
Brazil PAR 4  3,172  40.7 5.8 47.4 11.3 21.8 5.1 50.8 
Cuba PAR 4  3,172  40.7 5.4 47.4 10.6 21.8 4.8 50.8 
Ecuador PAR 4  3,172  40.7 4.8 47.4 9.5 21.8 4.3 50.8 
Panama PAR 4  3,172  40.7 5.4 47.4 10.6 21.8 4.8 50.8 
Paraguay PAR 4  3,172  40.7 4.5 47.4 8.7 21.8 3.9 50.8 
Ecuador ARAM 2  186 2.4 6.3 49.8 12.8 23.9 5.5 53.2 
Paraguay ARAM 3  79 1.0 6.6 48.4 13.0 23.2 5.8 51.8 
Note:  The average takes into account the ad valorem  equivalents (AVEs) for lines subject to specific tariffs. 
The AVEs were estimated on the basis of the unit values of total imports in 2020, provided by the 
Mexican authorities. Compound or mixed tariffs (36 lin es) were excluded from the calculations.  
Source:  WTO Secretariat, based on data from the Mexican authorities.  
3.39.   Despite the large number of trade agreements signed by Mexico, the  low rates of preferential 
tariffs negotiated and the high degree of trade liber alization provided for in these agreements 
(extending, under  some, to 99 % or 100 % of the total tariff schedule), the percentage of imports 
enjoying preferential treatment held steady at around 36 % in both 2020 and 2021 (Q2) (Table  3.7). 
The low take -up of preferential tariffs could be attributed  to the existence of other preferential 
regimes such as the IMMEX programme and sectoral promotion (PROSEC)  programmes , or to the 
fact that nearly  50% of tariff lines have a tariff of 0% . 
Table 3.7 Imports receiving preferential treatment and MFN imports  
(%) 
Imports  2020  2021 (Q2)  
Preferential 
treatment  MFN Preferential 
treatment  MFN 
Total imports  35.6 64.4 36.5 63.5 
Origin      WT/TPR/S/429 • Mexico  
 
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  Imports  2020  2021 (Q2)  
Preferential 
treatment  MFN Preferential 
treatment  MFN 
Trading partner with 
agreements  50.1 49.9 50.7 49.3 
Trading partner without 
agreements  7.3 92.7 7.2 92.8 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.4.4   Tariff concessions  
3.40.   Mexico continues to grant tariff concessions in respect of certain goods imported for specific 
uses, for example goods imported by public agencies for national defence, public security or 
education purposes, or goods imported by international organizations (Article 61 of the Customs  
Law). Also exempt ar e imports of goods for "special operations" (HS Chapter  98)42, and certain 
goods imported into  the border region and the northern border zone.43 
3.41.   The general import tax for the border region and the northern border zone, notified by Mexico 
in 2019 in compli ance with the provisions of the Agreement on Subsidies and Countervailing 
Measures44, was established in order to encourage the development of commercial and service 
activities, and to facilitate import monitoring and operations in those regions. According ly, operators 
who engage in commercial activities or provide certain services45 and who hold registration as a 
border enterprise may import goods at a preferential tariff rate. The schedule of products and the 
tariff-reduction schedule were the subject of various amendments during the review period 
(Box 3.1). As notified to the WTO, it is not possible to determine the effect of this measure on 
trade.46 According to calculations by the Secretariat based on data supplied by the authorities, the 
goods imported  under this procedure represented 0.4 % of all imports in 2020, and 0.3 % of all 
imports in 2021 (Q2), while exports are near -zero. 
3.42.   In 2021, in order to address the health emergency, tariffs applicable to vaccines against 
the SARS -CoV-2 virus (HS  3002.20.10)  and aluminium containers for oxygen for medicinal use 
(HS 7613.00.02) were cut to zero from 5 % and 10 % respectively.47 
3.43.   Additionally, in order to promote vehicles that use new, clean technologies, Mexico 
temporarily eliminated tariffs in respect of a numbe r of electric cars and motor vehicles during the 
period 2020 -24 (30  September).48 The tariff concessions are used to allow free competition and 
access to clean new technologies in order subsequently to develop a domestic industry.49 
3.44.   Mexico continues to gra nt tariff concessions under various programmes, such as PROSEC 
and IMMEX.  
 
42 Comprehensiv e Foreign Trade Information System (SIICEX). Information viewed at: 
http://www.siicex -caaarem.org.mx . 
43 Article  136 of the Customs Law provides as follows: "For the purposes of this Law, 'border zone' 
means  the territory included between the international frontier and the parallel line located 20 kilometres from 
the border. 'Border region' means the territory defined by the Federal Executive".  
44 WTO document G/SCM/N/315/MEX of 24  September  2019.  
45 These incl ude restaurant, hotel, leisure, cultural, recreational, sporting, educational, research -related, 
medical and social care services; rental services for moveable property; and services to businesses.  
46 WTO document G/SCM/N/315/MEX of 24  September  2019.  
47 Decree amending the tariff schedule in the Law on General Import and Export Taxes (Official Journal 
of 22 February 2021). Viewed at: 
http://www.dof.gob.mx/nota_deta lle.php?codigo=5611928&fecha=22/02/2021 . 
48 Decree amending the tariff schedule in the Law on General Import and Export Taxes, the Decree 
supporting the competitiveness of the automotive industry and fostering the development of the domestic car 
market, the  Decree establishing the general import tax for the border region and the northern border zone, the 
Decree establishing various sectoral promotion programmes, and various provisions establishing tariff quotas 
(Official Journal of 24 December 2020).  
49 Decre e amending the tariff schedule in the Law on General Import and Export Taxes (Official Journal 
of 3 September 2020).  WT/TPR/S/429 • Mexico  
 
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  Box 3.1 Amendments to the general import/export procedure for the border region and 
the northern border zone  
In 2016 it was established t hat the original schedule of products subject to preferential treatment, namely 
the schedule included in the Decree establishing the general import tax for the border region and the northern 
border zone, of 24  December  2008, would be fully rebated until 31  December  2019.  
In 2019, it was decided to extend the tariff -reduction timetable for some of the products concerned 
until 30 September  2024 and to tax other products at 5% until 31  December  2019.  
In 2020 the tariff -reduction timetable was amended  again in respect of some tariff headings. For tariff 
headings HS  7308.30.02 and 7308.90.99, the tariff would be 10% from 22  September  2021 and 7% 
from 22 September  2023, and for other tariff headings (HS  7304.19.01, 7304.19.02, 7304.19.03, 
7304.29.99, 730 4.39.10, 7304.39.11, 7304.39.12, 7304.39.13, 7304.39.14, 7304.39.15, 7305.20.01, 
7306.19.99, 7306.29.99, 7306.30.99 and 7308.20.02), the tariff would be 10% from 22  September  2021 
and 5% from 22  September  2023. The headings would be duty -free from 1  Octobe r 2024.  
In 2021 the tariff -reduction programme was again amended in order to create conditions conducive to 
enabling the steel industry to adapt to the international economic environment and incentivizing the domestic 
market. Consequently the tariff for certain related tariff headings would be 10% from 30  June 2022, 5% 
from 22  September  2023 and tariff -free from 1  October  2024.  
In 2021, certain products in HS Chapters 61, 62, 63, 64 and 87, such as clothing and textiles, footwear and 
vehicles were re moved from the schedule of products eligible for preferential treatment when imported by 
border businesses.  
Source:  WTO Secretariat, based on the Decree amending and extending the duration of the miscellaneous 
provision establishing the general import tax  for the border region and the northern border zone 
(Official  Journal  of 17 November  2016).  Viewed  at: https://www.dof.gob.mx/nota_detalle.php?codig
o=5461351&fecha=17/1 1/2016 ; and the Decree amending the tariff schedule in the Law on General 
Import and Export Taxes (Official Journal of 22  November  2021). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5635991&fecha=22/11/202 1. 
3.45.   The tariff concessions granted by Mexico and preferential trade have led to the share of tariffs 
as a percentage of total tax revenues remaining steady at around 2 % during the period under review 
(Table  3.8). The SHCP is of the view that the low level of revenue is due among other reasons to 
tax incentives provided under tariff preferences.50 
Table 3.8 Tax revenue related to taxes on foreign trade  
(MXN  billion)   
2016  2017  2018  2019a 2020a 2021Q2a 
Total tax revenue  2,716  2,850  3,062  3,203  3,339  1,856  
Taxes on foreign trade  51 52 66 65 58 33 
Imports  51 52 66 65 58 33 
Exports  0 0 0 0 0 0 
As a % of tax revenue  1.9 1.8 2.1 2.0 1.7 1.8 
As a % of GDP  0.3 0.2 0.3 0.3 0.3 0.1 
a Preliminary figures.  
Source:  Bank of Mexico, SIE database.  
3.1.5   Other charges affecting imports  
3.46.   In Mexico both imported and domestic products are subject to various internal taxes: value 
added tax (VAT), the special tax on production and services (IEPS), and the tax on new automobiles 
(ISAN).  
3.47.   Definitive imports are subject to VAT, except for personal luggage and household effec ts, 
goods whose disposal in the country and services whose provision in national territory are exempt 
from payment of the tax or apply the 0 % VAT rate, goods donated by residents abroad, works of art 
recognized as such, gold (with a minimum content of said  material of 80 %) and duty -free vehicles 
when they belong to personnel of foreign governments with which Mexico has diplomatic relations.51 
 
50 National Development Financing Programme 2020 -24 (Official Journal of 5  August 2020). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5597864&fecha=05/08/2020 . 
51 Tax Administration Service (SAT). Viewed at: 
http://omawww.sat.gob.mx/EstimulosFiscalesNorteSur/Paginas/index.html . WT/TPR/S/429 • Mexico  
 
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  The VAT rate has not varied since the previous review (2017) and still stands at 16 %. The VAT tax 
base for imports h as not changed either since 2017: it is the customs value plus the amount of 
import tariffs and other duties payable.  
3.48.   The general VAT rate is not applied throughout the national territory however, as since 2018 
a reduced rate of 8 % has been applied in nort hern and southern border areas for products produced 
and sold in those areas (the rate for imported products is 16 %).52 This measure forms part of the 
fiscal stimuli granted to operators whose income obtained from transactions within this region 
amounts to  at least 90 % of total income. This stimulus, initially valid until 2020, was extended 
until 2024, and its application was broadened to include the southern border area.53 
3.49.   Mexico continues to apply the IEPS to certain goods and services, such as alcoholic beverages, 
processed tobacco, calorie -dense foods, pesticides and fuels. Goods subject to the IEPS have not 
changed during the review period. The IEPS can be ad valorem (alcoholic beverages, energy drinks, 
pesticides and calorie -dense foods), specific (veh icle fuels, flavoured drinks and fossil fuels) or 
compound (cigars); since 2016, some rates have been updated to reflect changes in the Consumer 
Price Index (Table 3.9). Various fiscal incentives are granted to operators that import and dispose 
of fuels.54 The amount of the incentive is adjusted, as necessary, to mitigate variations in 
international prices, and may vary by region and sector.55 The amounts of the tax incentive 
applicable to the disposal and import of gasoline, as well as to disposal in the b order region with the 
United States and on the southern border with Guatemala, are set out in decisions published in the 
Official Journal, which are valid for a period of seven days.56 Similarly, the percentage of incentive 
for the use of fuels in the fish eries and agricultural sectors is published in monthly decisions.57 
3.50.   New cars priced at above MXN  313,163.32 (in 2017 the reference price was MXN  222,032.19) 
are subject to the payment of the ISAN, a tax made up of an ad valorem  component and a specific 
component that varies according to a range of prices. The ad valorem  component is calculated on 
the basis of the difference between the lower limit of the range and the price of the vehicle 
(Table  3.9). For vehicles bought in the country, the tax is calculated on the basis of the sales price 
of the vehicle to the end user. In the case of imports, the tax is calculated on the basis of the 
customs value plus import duty and other import -related duties payable, excluding VAT.58 Electric 
motor vehicles ar e exempt from the ISAN.  
 
52 Decree on fiscal stimuli in the northern border region (Official Journal of 31 December 2018). 
Viewed  at: http://dof.gob.mx/nota_detalle.php?codigo=5547485&fecha=31/12/2018 . 
53 Decree amending the miscellaneous provision on fiscal stimuli in the northern border region 
(Official  Journal of 30 December 2020) and Decree on fiscal stimuli in the southern border region 
(Official  Journal of 30  December 2020). Viewed at: 
https://www.dof.gob.mx/nota_deta lle.php?codigo=5609182&fecha=30/12/2020 . 
54 Decree amending the miscellaneous provision establishing fiscal stimuli related to the special tax on 
production and services applicable to the fuels indicated (Official Journal of 27 December 2016, most recent 
amendment published on 30 December 2020).  
55 Decision No. 118/2021 (Decision announcing the percentages and amounts of the fiscal stimulus, as 
well as the reduced special tax on production and services applicable to the fuels indicated, for the period 
specifi ed) (Official Journal of 27 August 2021).  
56 Decision No. 119/2021 (Decision announcing the amounts of the fiscal stimuli applicable to the sale of 
gasoline in the border region with the United States of America for the period specified) (Official Journal 
of 27 August 2021).  
57 Decision establishing fiscal stimuli for gasoline and diesel in the fisheries and agriculture 
sectors  (Official  Journal  of 30 December  2015).  Viewed  at: https://www.dof.gob.mx/nota_detalle.php?codigo=
5421732&fecha=30/12/2015 ;and Decision establishing fiscal stimuli for gasoline and diesel in the fisheries 
and agriculture  sectors  (NORLEX  data sheet).  Viewed  at: https://www.norlexinternacional.com/arch/30121504.
htm. 
58 The Federal Law on New Automobiles (most recent amendment published on 12 November 2021). 
Amounts updated by Omnibus Tax Resolution (Official Journal of 28 December 2021). Viewed at: 
https://www.diputados.gob.mx/LeyesBiblio/pdf/LFISAN.pdf . WT/TPR/S/429 • Mexico  
 
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  Table 3.9 Other import charges, 2022  
 Taxable goods  Rate in 2022  Changes since 2017  
VAT All goods, except those specified 
in Article 25 of the Law on VAT 
(for example, personal luggage 
or household effects)  16% (general rate)  No change  
IEPS  Alcoholic beverages and beer  26.5%, 30% or 53%, 
according to alcohol content  No change  
Alcohol, denatured alcohol and 
non-crystallized honey;  50% No change  
Cigars/cigarettes  160% + MXN 0.5484/  
75 grams of tobacco  Specific component updated  
Cigars and other processed 
tobacco  160%; 30.4% (handmade)  No change  
Vehicle fuels   Previously, gasoline below, 
higher than or equal 
to 92 octane was subject to 
the IEPS.  
The rate of the specific 
component is updated annually 
by a SHCP Decision.  Gasoline, below 91 octane  MXN 5.4917/litre  
Gasoline, 91 octane or higher  MXN 4.6375/litre  
Diesel  MXN 6.0354/litre  
Non-fossil motor vehicle fuels  MXN 4.6375/litre  
Fossil fuels (carbon emissions)   Specific rate updated  
Propane  MXN 8.2987 cents/litre  
Butane  MXN 10.7394 cents/litre  
Gasoline and aviation fuel  MXN 14.5560 cents/litre  
Jet fuel and other kerosenes  MXN 17.3851 cents/litre  
Diesel  MXN 17.6624 cents/litre  
Fuel oil  MXN 18.8496 cents/litre  
Petroleum coke  MXN 21.8784 pesos/tonne  
Coking coal  MXN 51.2901 pesos/tonne  
Coal MXN 38.6201 pesos/tonne  
Other fossil fuels  MXN 55.8277 pesos/tonne of 
carbon in fuel 
Energy drinks and syrups and 
concentrates for the preparation 
thereof  25%; 25% + MXN 1.3996/litre 
when containing added sugar  Rate of specific component 
updated  
Flavoured drinks and syrups and 
concentrates for the preparation 
thereof, containing added sugar  MXN 1.3996/litre  Specific rate updated  
Pesticides  6%, 7% or 9%, according 
to toxicity  No change  
High-calorie non -staple foods 
(≥ 275 kcal/100 grams)  8% No change  
ISAN  Price range (MXN)a Specific rate 
(MXN)a Ad valorem 
rate 
(%)a In 2022, if the price of the 
motor vehicle exceeds 
MXN 864,750.45, 7% of the 
difference between the unit 
price and MXN 864,750.45 will 
be deducted from the amount 
of tax determined.   0.01-313,163.32  0.00 2 
 313,163.33 -375,795.92  6,263.16  5 
 375,795.933 -438,428.76  9,394.94  10 
 438,428.77 -563,693.73  15,658.19  15 
 > 563,693.74  34,447.90  17 
 Lorries with carrying capacity 
of 4,250 kg  n.a. 5 No change  
n.a. Not applicable.  
a Updated annually through Annex 15 of the Omnibus Tax Resolution for the year in question.  
Source:  Law on VAT; Law on the IEPS; Federal Law on New Automobiles; and Decision updating the rates of 
special taxes on production and services in 2022 (Official Journal of 23  December  2021). Viewed at:  
https://www.dof.gob.mx/nota_detalle.php?codigo=5639152&fecha=23/12/2021 . 
3.1.6   Import prohibitions, restrictions and licensing  
3.51.   The Foreign Trade Law (LCE) and its implementing regulations continue to govern the 
imposition of non -tariff regulations and restrictions (RRNAs). The Federal Executive may regulate, 
restrict or prohibit the import (export), movement or transit of goods, in circumstances deemed to WT/TPR/S/429 • Mexico  
 
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  constitute  an emergency, by means of decrees published in the Official Journal.59 The reasons for 
imposing this type of measure have not changed since 2017. According to the Law, RRNAs may be 
imposed for the purpose of balancing payments; regulating the entry of use d products (waste or 
products that lack a significant market in their country of origin or provenance); controlling situations 
related to national security, public health or plant, animal or environmental health; or as provided 
in international treaties or  conventions. RRNAs may consist of: prior permits, maximum quotas, 
Mexican Official Standards (NOMs), compensatory quotas, certification s, marking of the country of 
origin or other instruments considered appropriate for the purpose of achieving national tr ade policy 
objectives (Article 16 of the LCE).  
3.52.   Before being imposed, these measures are evaluated by the Foreign Trade Commission 
(COCEX), except in cases of emergency.60 COCEX must base its evaluation on an economic analysis, 
prepared by the relevant depa rtment, of the costs and benefits of applying the measure. This 
analysis may take into account, among other elements, the impact of the measure on prices, 
employment, competitiveness, tax revenue, consumers, the variety and quality of the available 
supply and the level of competition in the markets. If COCEX does not accept the proposed measure, 
the relevant bodies must revise it.  
3.53.   Mexico continues to prohibit  the import of certain products (41 tariff lines at the HS 2017 
8-digit level), in particular chemic als and drugs (Table 3.10).61 Since the last review, some products 
from the chemical industries (18 lines from HS Chapters 29 and 38) and vaping devices have been 
added to the list, including electronic cigarettes and tobacco -heating devices (two lines fro m HS 
Chapter 85). The import of products classified under these lines has been prohibited to protect 
human life and health.62 
Table 3.10 Prohibited imports (exports) (HS Chapter), 2021  
HS Chapter  Reason  Number of lines  
3 Fish and crustaceans, molluscs and other aquatic 
invertebrates  Animal conservation  1 
12 Oil seeds and oleaginous fruits; miscellaneous grains, 
seeds and fruit; industrial or medicinal plants; straw 
and fodder  Illicit substance  3 
13 Lac; gums, resins and other vegetable saps and 
extracts  Illicit substance  3 
28 Inorganic chemicals  Toxic substance  1 
29 Organic chemicals  Rotterdam/Stockholm 
Convention and illicit 
substance  18 
30 Pharmaceutical products  Illicit substances  4 
38 Miscellaneous chemical products  Rotterdam/Stockholm 
Convention and health  6 
41 Raw hides and skins (other than furskins) and leather  Animal conservation  1 
49 Printed books, newspapers, pictures and other 
products of the printing industry; manuscripts  Promotion of violence  2 
85 Electrical machinery and equipment; image and sound 
recorders and reproducers  Health  2 
Source:  WTO Secretariat, based on data provided by the authorities.  
3.54.   The licensing system in Mexico is governed by the LCE, its implementing regulations and the 
Ministry of Economic Affairs Decision issuing General Rules and Criteria for Foreign Trade (most 
recent amendment published in the Official Journal of 31  December  2019).63 The Ministry of 
Economic Affairs (SE) is the bo dy responsible for implementing the system. The goods subject to 
 
59 Article 4 of the LCE and Article 131 of the Political Constitution of the United Mexican States.  
60 Articles 17 to 19 of the LCE and Article 9 of the regulations implementing the LCE of 1993 (most 
recent amendment published on 22  May 2014).  
61 WTO document G/MA/QR/N/MEX/1 of 27 July 2016.  
62 Imports of the following were prohibited: solutions, mixtures, cartridges and/or dismountable tobacco 
units used for what is included in tariff item 8543.70.18 (HS 3824.99.83) and electronic nicotine delivery 
systems (ENDS), non -nicotine delivery systems (NNDS), alternative nicotine delivery systems (ANDS), 
electronic cigarettes and vaping devices with similar uses (HS 8543.70.18) (Decree amending the tariff 
schedule  in the Law on General Import and Export Taxes (22 October 2021)). Viewed at: 
http://www.diputados.gob.mx/LeyesBiblio/ref/ligiex/LIGIEx_tarifa04_22oct21.pdf . 
63 WTO document G/LIC/N/3/MEX/7 of  2 June 2021.  WT/TPR/S/429 • Mexico  
 
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  licensing are reviewed once a year, and removing any product from or adding any product to this 
list is subject to the favourable opinion of COCEX.  
3.55.   Mexico currently uses both automatic licensing (automatic permits) and non -automatic 
licensing (prior permits). In principle, the use of one type of licence does not exclude the 
other,  i.e. both licences may be required to import the same good. The use of both licences is due 
to the  fact they serve different purposes . Automatic licences (automatic permits) are used to keep 
a statistical record of imports64, while non -automatic licences are used to regulate the trade of 
specific products, in order to protect consumers, public health o r the environment, regulate the 
import of inputs under preferential regimes or comply with international treaties or agreements.  
3.56.   The number of tariff lines subject to automatic licences increased during the review period. 
Automatic licensing (automatic per mits) affected 1,041 tariff lines in 2021, i.e. 13.3 % of all tariff 
lines, while in 2016 that percentage was 8.2 % of the total. Automatic licensing continues to be 
required for the same type of products as in 2016: textiles (764 tariff lines at the HS 2017 8-digit 
level), footwear (28 tariff lines at the HS 2017 8-digit level) and base metals (iron products) 
(172 tariff lines at the HS 2017 8-digit level).65 When requesting a licence, the import procedure 
and tariff line must be specified, as well as the value and quantity authorized to be imported (or 
exported) and the period of validity. Licences may be valid for a maximum period of four months 
depending on the product concerned, and are non -transferable. Customs may authorize one or more 
automatic extensions of the validity of the original import licence.66 The SE approves all applications, 
provided that the applica nts meet the legal requirements to carry out foreign trade transactions in 
Mexico.67 
3.57.   In 2021, 25.2 % (1,964 tariff lines at the 8 -digit level of HS 2017) of the total tariff lines that 
made up Mexico's Tariff were subject to non -automatic import licensing r equirements (prior 
permits). (Chart  3.3). Over the period 2016 -21, the use of non -automatic licensing appears to have 
decreased; however, given the change in nomenclature and the removal of tariff lines from the 
Tariff, this cannot be stated with certainty . Mexico continues to use both types of licensing for 
textiles, footwear and metals (Table 3.1 1). 
 
64 Article 21 of the regulations implementing the LCE.  
65 WTO documents G/LIC/N/3/MEX/6 and G/LIC/N/3/MEX/7 of 24 September 2019 and 2 June 2021, 
respectively; and information provided by the authorities.  
66 Article  24 of the regulations implementing the LCE (most recent amendment published 
on 22 May 2014).  
67 Article 21 of the regulations implementing the LCE (most recent amendment published 
on 22 May 2014).  WT/TPR/S/429 • Mexico  
 
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  Chart 3.3 Automatic and non -automatic import licensing by HS section, 2021  
(Number of tariff lines)  
 
Note:  "Other" includes some merchandise for sectoral promotion (PROSEC)  programmes.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Table 3.11 Tariff lines subject to automatic and non -automatic import licensing, 2021  
HS 
section  Tariff line  Description  
11 5113.00.02  Woven fabrics of coarse animal hair or of horsehair  
11 5901.90.99  Other textile fabrics coated with gum or amylaceous substances  
11 6305.10.01  Sacks and bags, of jute or of other textile bast fibres of heading 53.03  
12 6403.19.02  Sports footwear for men  
12 6403.19.99  Other sports footwear  
12 6403.20.01  Footwear with outer soles of leather, and uppers which consist of leather 
straps  
12 6403.51.05  Other footwear with outer soles of leather, covering the ankle  
12 6403.59.99  Other footwear with outer soles of leather  
12 6403.91.12  Other welt footwear covering the ankle  
12 6403.91.99  Other footwear covering the ankle  
12 6403.99.01  Other welt footwear  
12 6403.99.12  Children's or babies' sandals  
12 6403.99.13  Other footwear for exercise and the like  
12 6403.99.14  Sandals, other than those under tariff subheading 6403.99.12  
12 6403.99.15  Other children's or babies' sandals  
12 6403.99.99  Other footwear  
12 6405.10.01  Other footwear, with uppers of leather or composition leather  
Other  9802.00.04  Goods for the toy industry PROSEC  
Other  9802.00.14  Goods for the PROSEC concerning the pharma -chemical, medicine and medical 
equipment industry  
Source:  WTO Secretariat, based on data provided by the authorities.  
3.58.   Non-automatic licensing applies to products originating in all countries, except where it is 
used to administer undertakings negotiated under trade agreements.68 The SE is responsible for 
issuing most non -automatic licences, although some of these are regulated and issued by other 
 
68 WTO document G/LIC/N/3/MEX/7 of  2 June 2021.  
418
295
13116
24607
2442102
16 17
2 11280
1591
2458
4 3 2763
48
3172
25
127
0100200300400500600700800900
1 2 3 4 5 6 7 8 9 11 12 13 14 15 16 17 18 19 20 21OtherNon-automatic licences
Automatic licencesHS sections:
1 -Live animals
2 -Vegetable products
3 -Fats and oils
4 -Prepared foodstuffs
5 -Mineral products
6 -Chemicals
7 -Plastics
8 -Raw hides and skins, leather
9 -Wood
11 -Textiles
12 -Footwear
13 -Articles of stone
14 -Natural pearls, precious metals
15 -Base metals
16 -Machinery and mechanical appliances
17 -Vehicles, aircraft, vessels and 
associated transport equipment
18 -Instruments
19 -Arms and ammunition
20 -Miscellaneous manufactured articles
21 -Works of art
Other -Unclassified productsWT/TPR/S/429 • Mexico  
 
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  Ministries such as SENER (petroleum products) and SEMARNAT (anti -pollution equipment and parts 
thereof) (Table 3.12).  
3.59.   Non-automatic licences are also required to import inputs under the IMMEX and PROSEC 
programmes. The procedure to obtain non -automatic licences for products imported under these 
programmes, listed in Chapter 98 of the Tariff, is differen t from the procedure used to obtain other 
non-automatic licences; in this case, the licences are regulated by Additional Rule 8a.69 Rule 8a 
concerns the licence issued by the SE for 25 tariff items under heading 98.02 of the Tariff, which 
allows companies to import machinery and equipment, materials, inputs, parts and components with 
preferential tariffs.70 
3.60.   Non-automatic licences are generally processed through the Mexican Digital Window for 
Foreign Trade (VUCEM), regardless of the institution that issues t hem, except for used clothing, in 
which case the process is carried out physically in federal branches and sub -branches of the SE.71 
The specific procedure for obtaining licences for some products72 can be viewed online through the 
Comprehensive Foreign Tr ade Information System (SIICEX).73 The deadline for issuing 
non-automatic licences may not exceed 15  working days from the date of application. These licences 
are generally valid for one year and may be extended for a further year up to three times, except  in 
the case of hydrocarbons and petroleum products, for which they may be valid for up to five years 
and extended once only for the same validity period.74 
3.61.   In addition to non -automatic import (export) licences, another type of permit may be 
required, such  as animal health import certificates (Table 3.12). There is an Interministerial 
Commission for the control of certain products such as pesticides, fertilizers and toxic substances.75 
Table 3.12 Ministries iss uing import (export) permits, 2021  
Entity  Product  Legal framework establishing the classification and 
coding of the products/goods  
SSA Essential chemicals  
 Federal Law on the Control of Chemical Precursors, 
Essential Chemicals and Machines for Manufacturing 
Capsules and/or Tablets (Official Journal of 27 April 1998, 
most recent amendment published on 20 May 2021).  
Decision establishing the classification and coding of 
essential chemicals for which imports and exports are 
subject to prior notific ation to the Ministry of Health 
(Official Journal of 30 June 2007, most recent 
amendment published on 1 June 2010).  
 
69 Viewed at: http://gaceta.diputados.gob.mx/Gaceta/58/2001/dic/Impuestos/Cap98.PDF . 
70 In 2021, 25 tariff items were subject to Rule 8a licences corresponding to 23 of the 2 4 PROSEC 
sectors of heading 98.02 of the tariff schedule in the Law on General Import and Export Taxes. Information 
viewed at: http://www.siicex.gob.mx/portalSiicex /Transparencia/Permisos/infgeneral.htm . 
71 Comprehensive Foreign Trade Information System (SIICEX). Information viewed at: 
http://www.siicex.gob.mx/portalSiicex/Transparencia/Permisos/archivos/Fichaspermisos/2015/FICHA%20INFO
RMATIVA %20PRENDERIA%202015.pdf . 
72 For example: used tyres for retreading and for laboratory testing; used vehicles, for dismantling, for 
persons with disabilities or to be donated; ambulances for reconstruction and refurbishment; material for 
research and develop ment; anti -pollution equipment and parts thereof; diamonds for industrial use and 
agricultural products under LAIA, the FTA with Uruguay and the FTA with Chile (SIICEX. Information viewed at: 
http://www.siicex.gob.mx/portalSiicex/Transparencia/Permisos/permisos -infespecifica.htm ). 
73 SIICEX. Viewed at: http://www.siicex.gob.mx/portalSiicex/Transparencia/Permisos/permisos -
infespecifica.htm . 
74 Decision establishing the classification and coding of hydrocarbons and petroleum products 
whose  import and export are subject to a prior permit from the Ministry of Energy (Official Journal 
of 26 December  2020).  
75 Decision establishing the classification and coding of goods whose import and export are subject to 
regulation by the bodies comprising the Interministerial Commission for the Control of the Processing and U se 
of Pesticides, Fertilizers and Toxic Substances (Official Journal of 12  April 2013; most recent amendment 
published on 5  February  2016).  WT/TPR/S/429 • Mexico  
 
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  Entity  Product  Legal framework establishing the classification and 
coding of the products/goods  
SSA Products intended for human 
consumption or for use in the 
processes of industries 
producing food for human 
consumption.  
Raw materials for medicines, 
pharma -chemicals, narcotics 
and psychotropic substances; 
products for the diagnosis or 
treatment of disease in humans 
and products used in 
rehabilitation; chemical 
substances  General Law on Health  
Decision determining the classific ation and coding of 
goods and products whose import, export, inward 
clearance or exit are subject to sanitary regulation by the 
Ministry of Health (Official Journal of 16 October 2012, 
most recent amendment published on 10 January 2018).  
SSA Tobacco and c igarettes  General Law for Tobacco Control  
Decision determining the classification and coding of 
goods and products whose import, export, inward 
clearance or exit are subject to sanitary regulation by the 
Ministry of Health (Official Journal of 16 October 2 012, 
most recent amendment published on 10 January 2018).  
SENER  Hydrocarbons and petroleum 
products  Decision establishing the classification and coding of 
hydrocarbons and petroleum products whose import and 
export are subject to a prior permit from the M inistry of 
Energy (Official Journal of 29 December 2014, most 
recent amendment published on 22 February 2019).  
SENER  Nuclear materials and fuels, 
radioactive materials, 
equipment that generates 
ionizing radiation, dual -use 
equipment and goods in the 
nucle ar field and related 
technology that are susceptible 
to diversion for the proliferation 
and manufacture of nuclear 
weapons and weapons of mass 
destruction  Decision establishing which goods imports and exports 
are regulated by the Ministry of Energy (Offici al Journal 
of 26 December 2020).  
SEMARNAT  Species listed in the CITES 
appendices; forestry products 
and by -products; pesticides, 
plant nutrients, toxic or 
hazardous substances or 
materials  Decision establishing which goods imports and 
exports  are regulated by the Ministry of the 
Environment  and Natural Resources (Official Journal 
of 26 December 2020).  
SEMARNAT 
and Federal 
Commission 
for 
Protection 
against 
Health Risks 
(COFEPRIS)  Pesticides, fertilizers and toxic 
substances  Decision est ablishing which goods imports and exports 
are regulated by the bodies comprising the 
Interministerial Commission for the Control of the 
Processing and Use of Pesticides, Fertilizers and Toxic 
Substances (Official Journal of 26 December 2020).  
SEDENA  Arms,  ammunition, gunpowder, 
explosives, fireworks and 
chemical substances related to 
explosives  Decision establishing which goods imports and exports 
are regulated by the Ministry of Defence (Official Journal 
of 27 December 2020).  
SADER  Agricultural products and 
aquatic species  Decision establishing which goods imports are regulated 
by the Ministry of Agriculture and Rural Development and 
regulating the issuing of certificates of origin for coffee 
exports (Official Journal of 26 December 2020).  
Source:  Information provided by the authorities.  
3.1.7   Anti-dumping, countervailing and safeguard measures  
3.62.   The regulatory framework governing anti -dumping, countervailing and safeguard measures 
has not changed since the previous review. The LCE and its implementing regu lations, as well as 
the WTO Agreements, continue to govern the use and application of contingency measures 
(anti-dumping and countervailing duties and safeguard measures). The existence of price 
discrimination (dumping) or subsidies, injury and a causal li nk between the two and the WT/TPR/S/429 • Mexico  
 
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  establishment of measures are determined on the basis of an investigation, in accordance with the 
administrative procedure prescribed in the LCE and its implementing regulations and in the WTO  
Agreements.  
3.63.   The International Trade Practices Unit (UPCI) of the SE is the authority responsible for 
conducting dumping, subsidy and safeguard investigations and for proposing the application (or not) 
of countervailing, anti -dumping and safeguard measures.76 The opinion of COCEX is taken int o 
account before applying the duties. The UPCI also participates in the Advisory Committee on 
International Trade Practices (CCPCI), an entity made up of public - and private -sector 
representatives, the mission of which is to formulate methodological and te chnical recommendations 
of a public and general nature in relation to investigations into unfair international trade practices 
and safeguards.77 
3.64.   The procedures for investigating unfair international trade practices and safeguard measures 
have not changed s ince the last review in 2017.78 Such investigations can be initiated by a party or 
ex officio . Applications from parties can be submitted by legally constituted organizations and natural 
or legal persons (producers of goods) using official forms.79 An ex officio investigation will be initiated 
when the SE has sufficient evidence of price discrimination or the existence of subsidies, injury and 
a causal link.  
3.65.   The administrative investigation must establish that dumped or subsidized imports cause or 
threaten to cause injury to the domestic industry, in accordance with the applicable rules. The UPCI 
determines the existence of material injury or threat of material injury to the domestic industry, 
taking into account all the factors of which it is aware.80 The UPCI always analyses whether there 
are factors other than the dumped or subsidized imports that could also affect the domestic industry. 
A determination is based on facts and not merely on allegation, conjecture or remote possibility.  
3.66.   In investigation s on unfair international trade practices and safeguard measures, the SE has 
a period of 25 days to accept the application and initiate the investigation (by means of an initiating 
resolution that is published in the Official Journal), or a period of 17 da ys to ask the applicant for 
more information or data, which must be provided within a period of 20 days from receipt of the 
application (prevention). If the UPCI considers that the information is satisfactory, it issues the 
initiating resolution; if the re quired elements and data are not provided in a timely manner, the 
application is rejected and the applicant is notified. If an investigation is initiated, the following day 
the SE notifies the interested parties of which it is aware and grants them a perio d of 23 days from 
the date of receipt of the responses to the official questionnaire to submit their arguments, 
information and evidence. The SE issues a preliminary resolution within a period of 90 days from 
the day following the publication of the resolu tion initiating the investigation, which is published in 
the Official Journal and notified to the interested parties that are known. The draft final resolution 
must be submitted to COCEX for its opinion and published in the Official Journal within a period  
of 210 days, counted from the day following the publication of the resolution initiating the 
investigation in the Official Journal. Through the final resolution, the SE can impose a definitive 
measure, revoke the provisional measure or declare the investi gation concluded without imposing 
measures.81 During the investigation, interested parties may request a conciliation process.  
3.67.   The SE determines the anti -dumping and countervailing measures, which may be lower than 
the margin of price discrimination or the  amount of the subsidy, as long as they are sufficient to 
 
76 WTO document G/ADP/N/14/Add.56 -G/SCM/N/18/Add.56 of 21 April 2022 and online information. 
Viewed at: https://www.gob.mx/se/acciones -y-programas/industria -y-comercio -unidad -de-practicas -
comerciales -internacionales -upci. 
77 Online informati on from the CCPCI. Viewed at: 
http://www.ccpci.economia.gob.mx/swb/es/ccpci/p_miembrosdel_ccpci . 
78 Online information from the CCPCI. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/31681/flujograma_procedimiento_antidumping.pdf ; 
https://www.gob.mx/cms/uploads/attachment/file/31682/flujograma_procedimiento_antisubvencion.pdf  y 
https://www.gob.mx/c ms/uploads/attachment/file/31680/flujograma_medidas_salvaguarda.pdf . 
79 Official forms. Online information. Viewed at: https://www.gob.mx/se/acciones -y-
programas/industria -y-comercio -unidad -de-practicas -comerciales -internacionales -upci. 
80 These factors are indicated in Articles 41 and 42 of the LCE and Articles 64 and 68 of the regulations 
implementing the LCE.  
81 Article 59 of the LCE. Online information. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/31681/flujograma_procedimiento_antidumping.p df. WT/TPR/S/429 • Mexico  
 
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  discourage the import of merchandise under unfair international trade practice conditions (Article 62 
of the LCE). The definitive measures shall remain in effect for the length of time and to the ex tent 
necessary to offset the injury to the domestic industry. In general, they are eliminated within a 
period of five years following their entry into force, unless before this period has elapsed the SE has 
initiated a procedure to review the validity of t he measure to determine whether its removal would 
result in the repetition or continuation of dumping and injury, in which case it may be possible to 
extend the measure for another five years. An annual review procedure can also be carried out at 
the reque st of an interested party or ex officio , pursuant to which both dumping or the amount of 
the subsidy and the injury are analysed. If, when reviewing a measure, the margins of dumping or 
the amount of the subsidies are different from those established in th e initial investigation, new 
measures will be imposed to replace the previous ones.82 
3.68.   The SE may accept an undertaking from the exporter or government concerned, issue the 
appropriate resolution and declare the administrative investigation suspended or ter minated; the 
aforementioned resolution is notified to the interested parties and is published in the Official Journal. 
During the period covered by this review, the commitments undertaken by two exporters were 
reviewed.  
3.69.   Mexican Law establishes a procedure against circumvention in the case of anti -dumping, 
countervailing or safeguard measures; goods imported under these conditions shall be subject to 
payment of the applicable duties or to the corresponding safeguard measure. Circumvention of 
preliminary or d efinitive measures shall be determined through proceedings initiated ex officio  or at 
the request of an interested party.83 During the review period, two anti -dumping circumvention 
investigations were initiated. In both cases, circumvention was confirmed a nd the corresponding 
measures were applied.  
3.1.7.1   Anti-dumping measures  
3.70.   Over the period 2017 -21, Mexico initiated 28 anti -dumping investigations (Table A3.4), fewer 
than in the period 2012 -16 (November), when 34 investigations were initiated. Most of the 
investi gations initiated concern products from China (39.3 %), the EU (14.3 %), the United States 
(10.7 %), Japan (7.1 %) and the Republic of Korea (7.1 %). During the review period , Mexico 
imposed  28 final measures.  
3.71.   As of December  2021, Mexico had 78 anti -dumping dut ies and two price undertakings. These 
duties mainly affected base metals, which accounted for 66.7 % of all measures (Chart 3.4). Most of 
these measures are imposed on products originating in China (44.9 %), followed by the EU and the 
United States (both 10. 3%) and Ukraine (6.4 %). The average duration of an anti -dumping measure 
in force in December  2021 was eight years and seven months; however, there are 22 measures that 
have been in force for more than 10 years.84 
 
82 Article 106 of the regulations implementing the LCE.  
83 Online information. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/167045/flujogr ama_Elusion_2016_1122.pdf . 
84 WTO document G/ADP/N/357/MEX of  30 September 2021.  WT/TPR/S/429 • Mexico  
 
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  Chart 3.4 Anti-dumping measures, 2017 -21 
(Number of investigations initiated and measures in force)  
 
Source:  WTO, Integrated Trade Intelligence Portal (I -TIP) and WTO document G/ADP/N/364/MEX 
of 21 March  2022.  
3.1.7.2   Countervailing measures  
3.72.   During the review period, Mexico did not initiate any investigation s related to countervailing 
measures.  
01020304050607080
2017 2018 2019 2020 2021
ArgentinaKazakhstanBrazilChinese TaipeiJapanRussian FederationIndiaKorea, Republic ofUkraineUnited StatesEU-27China
0510152025303540Base metals
66.7% Fats and oils
2.6%
Other
9%
Electrical 
machines and 
apparatus
3.8%Plastics
3.8%
Miscellaneous 
products 
5.1%Stone and 
ceramic 
products 
2.6%Cases initiated
Measures in force
(at end of period)
Chemicals
6.4%Total measures in force by HS section and partner, at 31 December 2021Iinitiated i nvestigations by HS section and partner, 2017 -2021
Chemicals
10.7%
Base metals
50%Electrical machines 
and apparatus
7.1%Plastics
14.3% Textiles
10.7%
Miscellaneous 
products
7.1%
0 2 4 6 810 12 14BrazilRussian FederationIndiaUnited KingdomChinese TaipeiViet NamKorea, Republic ofJapanUnited StatesEU-27China
Number of measures
Number of measuresWT/TPR/S/429 • Mexico  
 
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  3.73.   As at 30 June 2021, Mexico had three countervailing measures in force, with an average 
duration of eight years and two months (Table 3.13).85 
Table 3.13 Definitive countervailing measures in force, 2017 -21 
Member  Product  HS code  Date of original imposition  
India Metoprolol tartrate  2922.19.28  26.07.2014  
Amoxicillin trihydrate  2941.10.12  28.11.2012  
Dicloxacillin sodium  2941.10.08  18.08.2012  
Source:  WTO Documents G/SCM/N/379/MEX and G/SCM/N/386/MEX of 17  September  2021 and 
10 March  2022, respectively.  
3.1.7.3   Safeguard measures  
3.74.   During the review period, Mexico did not initiate any safeguard investigations. Mexico does 
not have any safeguard measures in force.  
3.75.   Mexico has reserved the possibility of using the special safeguard provision of the Agreement 
on Agriculture; it did not, however, use this provision during the 2017 -20 period.86 
3.2  Measure s Directly Affecting Exports  
3.2.1   Registration and documentation  
3.76.   There have been no major changes to export requirements since the previous review.  
3.77.   Exporters (and importers) must be registered with the Federal Taxpayers Registry (RFC) in 
order to be able to issue electronic invoices, apply for certificates and/or permits, complete export 
formalities, or obtain refunds, tax rebates or certain benefits under government programmes. In 
addition, natural or legal persons exporting certain goods (classified under 15 HS chapters) must be 
enrolled in the SAT's Register of Exporters in Specific Sectors.87 The products covered by this 
requirement vary depending on the risk models defined by the customs authorities for each product. 
Exporters and importers may be suspended from the registers for failure to comply with the 
requirements stipulated in customs and related regulations.88 For example, in the case of def initive 
exports or returns of goods abroad, suspension would take place if the declared goods were found 
not to have left the country or if at least 90 % of the declared value had not been returned.  
3.78.   Exporters may undertake customs clearance of goods either through their accredited legal 
representative, a customs broker or, having sought and received authorization from the customs 
authority, without the involvement of a customs broker. Where there is no customs broker, the 
exporter is assigned an authorizatio n number allowing the declaration to be transmitted through the 
electronic customs system. The export declaration must specify the destination regime. Mexico 
operates two export regimes: (i) definitive and (ii) temporary, which may take the form of an 
exported product that returns to the country in the same condition that it left or for manufacture, 
processing or repair.89 SAT-authorized exporters may submit the export declaration and the various 
substantiating documents in electronic form to Customs throug h VUCEM.90 If exporters are not so 
 
85 WTO documents G/SCM/N/379/MEX and G/SCM/N/386/MEX of 17 September 2021 
and 10 March  2022, respectively.  
86 WTO documents G/AG/N/MEX/43 and G/AG/N/MEX/46 of 12 February 2019 an d 28 June 2019, 
respectively, and WTO documents G/AG/N/MEX/49 and G/AG/N/MEX/50 of 20 May 2021.  
87 These products include cane molasses; ethyl alcohol; alcoholic beverages (including beer and 
tequila); cigars and tobacco; iron ores; gold, silver and bronze;  plastics; rubber; glass; steel; and aluminium 
(Annex 10 to the General Foreign Trade Rules for 2022, Official Journal of 6  January  2022). Viewed at: 
https://www.sat.gob.mx/normatividad/14537/reglas -generales -de-comercio -exterior -(rgce) . 
88 Article 144 (XXXVI) of the Customs Law and Rule 1.3.3., Causales de suspensión en los padrones , 
under the General Foreign Trade Rules for 2022 (Official Journal of 24 De cember 2021).  
89 Article 90 of the Customs Law. Viewed at: 
http://www.diputados.gob.mx/LeyesBiblio/pdf/12_241220.pdf . 
90 Documents required for exports: the transport document, the com mercial invoice or electronic proof 
of value (COVE), the packing list, the customs clearance and certificates showing the quality and quantity of 
the goods.  WT/TPR/S/429 • Mexico  
 
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  authorized, their customs broker or legal representative undertakes customs formalities on their 
behalf.  
3.79.   Adherence to certain non -tariff export regulations or restrictions is required for some goods, 
namely: a phytosanita ry or animal health certificate (issued by the National Health, Food Safety and 
Agri-food Quality Service (SENASICA) of the SADER); a health certificate for beverages, prepared, 
processed or tinned foods, medicines and human blood derivatives (issued by CO FEPRIS of the 
Ministry of Health); an export permit or non -automatic export licence (issued by the Ministry of 
Economic Affairs); a CITES certificate (issued by SEMARNAT); a certificate issued by the regulatory 
boards for exports of tequila, mezcal and cof fee; and certificates of origin for exports eligible for 
preferential treatment in the destination country. These documents are processed through  VUCEM.  
3.80.   The customs processing fee (DTA) is payable on all exports.91 In 2022, the DTA on exports 
was MXN  379 (MXN  288 in 2016), regardless of the export regime or type of export (Table 3.14). 
Exporters of goods to certain markets are exempt from the DTA.92 
Table 3.14 Customs p rocessing fee (DTA) for exports, 2022  
Export type or regime  Fee 
Definitive exportation  MXN 379 
Export of goods exempt from foreign trade taxes under the Customs Law  
Return of definitively exported goods  
Temporary exports to be returned in the same condition  
Exports of goods having no customs value  MXN 379 
Source: Federal Law on Duty . 
3.2.2   Export taxes and duties  
3.81.   The general export tax (IGE) is levied in order to guarantee supplied to the  domestic market 
or to protect human health, the environment, fauna, flora  and cultural heritage. In  2021, just as in 
2016, only two 8 -digit HS 2017 tariff lines (HS 2714.90.99 (other bitumens and asphalts) and HS 
2715.00.99 (other bituminous mixtures)) were subject to the gene ral export tax, at a rate of 25 %. 
The tax base for the export tax is the transaction value of the goods.93 
3.82.   Definitive exports by companies' resident in Mexico benefit from a 0 % IEPS rate94 and 
a 0% VAT rate on the value of sales of goods or services for export.95 
3.2.3   Export prohibitions, restrictions and licensing  
3.83.   Mexico regulates exports of certain products in order to protect public health, public morality, 
security and public order; to conserve the country's non -renewable and historically sign ificant 
resources; and to guarantee supplies of essential consumer goods and raw materials.96 Prior to the 
imposition of measures to regulate exports, the Foreign Trade Commission (COCEX) evaluates 
studies prepared by the departments proposing the measures  in question.  
3.84.   Mexico bans the export of certain chemical products, drugs and vaping devices (41 8 -digit 
HS 2017 tariff lines) on the grounds of public health or safety or in order to comply with international 
agreements. Mexico also prohibits the export of  totoaba and turtle eggs of any type (HS 0410.00.01) 
for environmental conservation reasons.97 In addition, there is a ban on the export of poppy seeds 
 
91 With the exception of the operations referred to under rules 5.1.1. and 5.1.2. of the General For eign 
Trade Rules for 2022.  
92 In 2022, this exemption applied to the following agreements: T -MEC, the Chile -Mexico Free Trade 
Agreement, the Mexico -Colombia Free Trade Agreement, ACE  No. 66 and the Free Trade Agreement between 
Mexico and Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua . 
93 Articles 79 and 80 of the Customs Law (Official Journal of 15 December 1995, latest amendment 
of 12 November 2021).  
94 Law on the IEPS (Official Journal of 12 November 2021).  
95 Law on VAT (Official Journal of 2 9 December 1978, latest amendment of 12 November 2021).  
96 Article 15 of the LCE.  
97 The totoaba is a species considered at critical risk of extinction and included on the Red List of 
Threatened Species  of the International Union for Conservation of Nature  (IUCN). There is a ban on exports of WT/TPR/S/429 • Mexico  
 
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  (HS 1207.91.01) and goods designated as archaeological monuments by the Ministry of Public 
Education (HS  9705.00.05).  
3.85.   The trade regime provides for the use of automatic licensing (automatic permits) and 
non-automatic licensing (prior permits) for exports. Automatic licensing is used for the purpose of 
keeping a statistical record of foreign trade transaction s. Licences are issued by the Ministry of 
Economic Affairs and are available to any legally -established foreign trade operator. 
In 2021,  75 tariff lines required an automatic licence, primarily for the export of base metals, certain 
food products and miner als (Chart 3.5).  
3.86.   Non-automatic export licensing is intended to regulate trade in certain products for the 
purpose of consumer, health or environmental protection or in order to comply with international 
treaties or agreements to which Mexico is party.98 Non-automatic licences are required for the export 
of these products to any destination on an MFN basis, with the exception of licences administered 
under preferential agreements. Non -automatic licences are processed through the VUCEM and are 
generally issue d by the Ministry of Economic Affairs, although depending on the product, other 
bodies may also be involved. For example, in the case of export of petroleum products, the Ministry 
of Economic Affairs will request an opinion from the Directorate -General for  Industrial Hydrocarbon 
Processing (DGTIH) within SENER and the Tax Revenue Policy Unity (UPIT) within the SHCP. SENER 
may refuse to grant a licence if the authorization has an impact on public finances, if production is 
insufficient or if the energy balan ce analysis shows that the exports concerned jeopardize domestic 
supplies and are detrimental to Mexico's energy security, or if exporting runs counter to the country's 
energy policy.99 For the export of iron ore (HS 2601.11.01 and 2601.12.01), the Ministr y of Economic 
Affairs liaises with the General Office of Mining. In this instance, non -automatic export licences are 
granted up to a maximum volume of 300,000 tonnes.100 
3.87.   During the period under review, there was an increase in the number of tariff lines carrying a 
non-automatic licensing requirement. In 2021, 13.54 % of the total Mexican tariff schedule 
(1,057  lines) was subject to non -automatic export licensing compared to 4.65 % (449 lines) in 2016. 
There was also an increase in the coverage of prod ucts subject to non -automatic export licensing. 
In 2016, this type of non -automatic licence was used primarily to regulate exports of chemical 
products, whereas in 2021, in addition to these products, a licence was required for the export of 
machines and m echanical appliances. Together with chemical products, these are the main exports 
to which this type of measure currently applies (Chart 3.5).  
 
fresh totoabas (HS 0302.89.01), fresh edible totoaba offal (HS  03.02.9903), frozen totoaba (HS 0303.89.01) 
and frozen edible totoaba offal (HS 03.03.9903) (informat ion provided by the authorities).  
98 For example, the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual -Use 
Goods and Technologies; the Convention on International Trade in Endangered Species of Wild Fauna and Flora 
(CITES); the Rotter dam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals 
and Pesticides in International Trade; and the Kimberley Process Certification Scheme.  
99 SIICEX. Viewed at: 
http://www.siicex.gob.mx/portalSiicex/Transparencia/Permisos/archivos/Fichaspermisos/2015/FICHA%20INFO
RMATIVA%20PETROLIFEROS%202015.pdf . 
100 SIICEX. Viewed at: 
http://www.siicex.gob.mx/portalSiicex/Transparencia/Permisos/archivos/Fichaspermisos/2016/FICHA%20INFO
RMATIVA%20MINERAL%20DE%20HIERRO%202016.pdf . WT/TPR/S/429 • Mexico  
 
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  Chart 3.5 Automatic and non -automatic export licensing by HS secti on, 2021  
(Number of tariff lines)  
 
Source:  WTO Secretariat calculations, on the basis of data provided by the authorities.  
3.88.   Mexico has preferential export quotas under its trade agreements with Colombia (soybean, 
sunflower and rape or colza oils) and Japan (citric acid and citric acid salts, and agave syrup) and 
the European Union (cane molasses).101 
3.2.4   Export support  
3.89.   Mexico notified the WTO that, over the period 2016 -18, no subsidies had been granted for 
exports of agricultural products.102 In 2019, it not ified that it had granted subsidies for agricultural 
exports during 2017 and 2018.103 In 2021, Mexico notified that in 2019 and 2020, it had granted 
neither subsidies for exports of agricultural products nor food aid.104 
3.90.   Mexico has continued to implement exp ort promotion programmes through tariff and tax 
concessions, aimed particularly at the manufacturing sector, with a view to promoting companies' 
productivity and competitiveness and thereby enabling Mexican products to be further incorporated 
into the glob al market. The main export promotion programmes remain IMMEX, launched in 2006, 
and the import duty drawback programme for exporters , dating from 1995. These programmes have 
not undergone any major change during the period under review.  
3.91.   IMMEX enables produ cers of goods for export or companies providing services for export to 
import, on a temporary basis, various goods (raw materials, inputs, components, packing materials 
and packaging, as well as machinery and equipment) free of general import tax and, where 
applicable, of anti -dumping or countervailing duties, in order to use them in the production  of export  
products . They may, in addition, obtain a significant VAT and/or IEPS tax credit equivalent to 100 % 
of the VAT and/or IEPS payable on the imported prod ucts. The amount of time that the goods may 
 
101 Online information from the SE. Viewed at: 
http://www.siicex.gob.mx/portalSiicex/SIC ETECA/Acuerdos/Cupos/Cupos%20x%20PRODUCTO/Cupos%20por
%20producto.htm . 
102 WTO documents G/AG/N/MEX/37 of 7 March 2018, G/AG/N/MEX/39 of 13 September 2018 
and G/AG/N/MEX/44 of 18 March 2019.  
103 WTO documents G/AG/N/MEX/39/Rev.1 and G/AG/N/MEX/44/Rev.1 of 19 Au gust 2019.  
104 WTO documents G/AG/N/MEX/51 and G/AG/N/MEX/52 of 21 May 2021.  
106
26
4 620285
34 36
22
4 21916
356291
2562
24
961 1 6 2 363
050100150200250300350
1 2 3 4 5 6 7 8 910 11 12 13 14 15 16 17 18 19 20 21OtherNon-automatic licences
Automatic licencesHS Section:
1 -Live animals
2 -Vegetable products
3 -Fats and oils
4 -Prepared foodstuffs
5 -Mineral products
6 -Chemical products
7 -Plastics
8 -Hides and skins, leather
9 -Wood
10 -Paper or paperboard, wood pulp
11 -Textiles
12 -Footwear
13 -Articles of stone
14 -Natural pearls, precious metals
15 -Base metals
16 -Machinery and mechanical appliances
17 -Aircraft or vehicles
18 -Instruments
19 -Arms and ammunition
20 -Miscellaneous manufactured articles
21 -Works of art
Other -Unclassified productsWT/TPR/S/429 • Mexico  
 
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  remain within the national territory depends on the good. For example, some fuels, packing 
materials, packaging, labels and leaflets may remain in Mexican territory for up to 18 months, while 
containers and trail er boxes may remain for up to two years. Certain products may not be imported 
under IMMEX or must comply with specific requirements.105 
3.92.   Both locally -owned firms and foreign -owned firms established in Mexico are eligible for IMMEX 
if their annual foreign sal es exceed USD  500,000 (or equivalent in other currencies) or billed exports 
represent at least 10 % of their total sales. The programme still comprises five options: IMMEX 
Holding Company, IMMEX Industrial, IMMEX Services, IMMEX Accommodation106 and IMMEX 
Tertiary.107 Incentives are the same across all options.  
3.93.   A firm may be eligible for both the IMMEX programme and a PROSEC programme at the same 
time ( Section 3.3.1).  
3.94.   The number of companies operating under IMMEX fell over the period under review 
from 6,448 in 2016 (September) to 6,007 in 2021. These companies operate primarily in the 
manufacturing sector (for example, metal products, transport equipment and parts, textiles and 
textile articles, and plastics and rubber). The IMMEX programme remains  very important for Mexico's 
trade. Over the period 2016 -21, firms benefiting from IMMEX were on average responsible for 55.8 % 
of exports and 43.3 % of imports (Chart 3.6). In 2021, IMMEX beneficiaries accounted for 55.4 % of 
exports and 43.7 % of imports.108 
3.95.   The import duty drawback programme for exporters has not undergone any major changes 
since the last review.109 The drawback system allows beneficiaries to recoup the duty paid on the 
import of raw materials, parts, components and other inputs used to produc e goods for export; on 
the import of goods returned in the same condition; or on the import of goods for repair or alteration 
and subsequent export.  
Chart 3.6 Exports and imports by type of regime, 2016 -21 
(USD billion)  
 
Source:  WTO Secretariat, on the basis of information provided by the authorities.  
 
105 Annex I and Annex II of the Decree to promote the Manufacturing, Maquila and Export Services 
Industry (Official Journal of 1 November 2006, latest amendment of 24 December 2020).  
106 Where one or more foreign companies provide technology and/or inputs without belonging to IMMEX.  
107 Article 3 of the Decree to promote the Manufacturing, Maquila and Export Services Industry 
(Official  Journal of 1 November 2006, latest amendment of  24 December 2020).  
108 In 2021, exports of these goods amounted to 56.1 % (56.4 % in 2016 ), with imports amounting 
to 52.3% (54.9 % in 2016) (information provided by the authorities) . 
109 Decree establishing the drawback of import duty for exporters (Official Jo urnal of 11 May 1995 and 
its amendments).  
0100200300400500600
2016 2017 2018 2019 2020 2021
Immex Non-ImmexTotal exports Total imports
0100200300400500600
2016 2017 2018 2019 2020 2021WT/TPR/S/429 • Mexico  
 
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  3.2.5   Export promotion  
3.96.   In 2019, ProMéxico, the body previously responsible for export promotion, was closed down110 
and its functions passed to the Ministry of Economic Affairs, which is now tasked with export 
promotion in coordination with the Ministry of Foreign Affairs.111 This institutional change was made 
in order to tap into "the Mexican Foreign Service's foreign direct investment and foreign trade 
promotion capabilities".112 As a result, export promotion policy has also undergone changes; 
ProMéxico offered export financing whereas the Ministry of Economic Affairs provides technical 
assistance through strategic trad e information, in addition to connecting Mexican and foreign firms.  
3.97.   During 2020 and 2021, the Ministry of Economic Affairs, through the Global Economic 
Intelligence Unit, launched various platforms (DataMéxico, ExportaMX and ComerciaMX) as part of 
its stra tegy to increase the presence of Mexican products abroad. DataMéxico is a platform for 
viewing and analysing open data to foster innovation, inclusiveness and diversification within the 
Mexican economy.113 ExportaMx provides general information on export op portunities by product 
and country.114 As of 2021, the platform contained trade data profiles for 6,553 products 
and 238 countries.115 ComerciaMX is linked to ConnectAmericas116, a platform specifically created to 
enable MSMEs to connect with buyers, supplier s and investors worldwide. Access to the ComerciaMX 
platform is free of charge and brings together over 400,000 enterprises from 100  countries.117 
3.98.   In addition, the Ministry established the International Business Centre (CINSE) in 2019, as 
part of the public  policy to attract foreign investment and promote exports. As of June  2020, the 
Centre had assisted 1,300 individuals and 400 firms with a service offering designed to attract 
foreign investment and harness opportunities to do business worldwide.118 
3.99.   ProMéxi co formerly offered financial support to exporting firms or those with export potential 
to enable them, inter alia , to commission consultancy services, conduct market surveys or take part 
in international fairs.119 In 2017 (most recent data available), ProM éxico provided repayable financial 
assistance totalling approximately MXN  24 million to 595 firms. The financial support mostly went 
towards strategic trade missions and technical assistance to provide employees with training in 
foreign trade -related topic s.120 
3.100.   Other institutions also support the export sector. The National System for Guidance to 
Exporters (SNOE) and the Joint Export Promotion Commission (COMPEX) assist interested firms with 
export procedures ( Section 2).121 
 
110 Decree authorizing the divestiture through closure of the public trust fund, ProMéxico, deemed to be 
a semi -public body  (Official Journal of 3 May 2019). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5559284&fecha=03/05/2019&print=true . 
111 Article 5 of the Decree authorizing the divestiture through closure of the public trust fund , ProMéxico, 
deemed to be a semi -public body (Official Journal of 3 May 2019). Viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5559284&fecha=03/05/2019&print=true . 
112 Governm ent of Mexico, Informe de Gobierno 2019 -2020, p. 104. Viewed at: 
https://presidente.gob.mx/wp -
content/uploads/2020/09/PRESIDENTE%20AMLO%202IN FORME%20DE%20GOBIERNO%202019 -2020.pdf . 
113 Information provided by the authorities.  
114 EXPORTAMX. Viewed at: https://exportamx.economia.gob.mx . 
115 Information provided by the authorities.  
116 ConnectAmericas is a social network designed to help SMEs participate in international markets. 
Viewed at: https://www.iadb.org/es/project/RG -T3453 . 
117 Information provided by the authorities.  
118 Gover nment of Mexico, Informe de Gobierno 2019 -2020, p. 324. Viewed at: 
https://presidente.gob.mx/wp -
content/uploads/2020/09/PRESID ENTE%20AMLO%202INFORME%20DE%20GOBIERNO%202019 -2020.pdf . 
119 The support granted by ProMéxico to its beneficiaries took the form of repayable financing to cover 
the categories of expenditure listed in the ProMéxico Support and Services Catalogues . 
120 Decree au thorizing the divestiture through closure of the public trust fund, ProMéxico, deemed to be 
a semi -public body (Official Journal of 3 May 2019).  
121 National Entrepreneurs Institute . Viewed at: https://www.redemprendedor.gob.mx/index.php/m -
inadem/16 -articulo -inadem -5; and online information. Viewed at: 
http://www.contactopyme.gob.mx/compex/default.asp . WT/TPR/S/429 • Mexico  
 
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  3.2.6   Export finance, insurance and guar antees  
3.101.   During the review period, there were no major changes in terms of the institutions offering 
export finance, insurance and guarantees. The National Foreign Trade Bank (Bancomext) - a federal 
development bank – still provides these services. Bancomext  acts as a first and second tier bank 
and offers financial products aimed at direct and indirect exporters (Table 3.1 5). Bancomext also 
has sector -specific programmes to address the financing needs of  "strategic" sectors.122 
Table 3.15 Financial products offered by Bancomext  
 First Tier  Second Tier  
Amount  Greater than USD 3 million  Less than USD 3 million  
Type of enterprise  SMEs and large enterprises  SMEs  
Financial products  Credit, int ernational factoring, letters of 
credit, credit insurance (through CESCEMEX)  PyMEx credit (PyMEx 
exporter and importer)  
Source:  Online information from Bancomext, viewed at: 
http://www.bancomext.com/conoce -bancomext/quienes -somos  and 
http://www.bancomext.com/empresas -que-apoyamos/exportadores . 
3.102.   During the review period, the main financing instrument offered by Bancomext was credit 
for sums exceeding USD  3 million to exporters, regardless of the sector in which they operated or 
the size of the firm. Bancomext also offers financing and technical assistance through the Financial 
Training Institute for Foreign Trade (IFFCE), enabling SMEs to become more competitive on the 
international market. In 2020 (Q3), Bancomext launched the Impulso PYME  50 scheme to 
finance  SME working capital.  
3.103.   Throughout the period, SMEs received a substantial portion of the credit (Table 3.16 ). 
"Strategic" sectors in general still receive around  50% of all credit (over 70 % in 2018); of these, 
the tourism sector, followed by energy and industrial parks and premises were the largest recipients 
of credit. In 2020, in view of the economic and social circumstances stemming from the pandemic, 
Bancomext  put in place credit restructuring plans and grace periods for capital payments, both in 
local and foreign currency. Furthermore, support was granted to finance working capital on top of 
debt rescheduling. Bancomext authorized rescheduling in 139 cases tot alling USD  288 million. The 
credit lines relating to these rescheduled debts amount to USD  3,309  million, primarily in the 
tourism, automotive, transport and logistics sectors.123 
Table 3.16 Credit granted by B ancomext, 2016 -20 
(MXN  million)  
 2016  2017  2018  2019  2020  
Total credit amount  234,504  253,739  275,706  268,619  277,782  
Beneficiary enterprises (number)  4,605  4,256  4,492  4,649  3,519  
Of which SMEs (%)  90.8 88.9 88.4 90.8 87.9 
Total credit amount for "strategic" 
sectors  163,085  176,118  196,050  190,954  200,030  
By "strategic" sector (%)       
Tourism  20% 15% 16% 17% 25% 
Energy  12% 10% 14% 17% 13% 
Industrial facilities (maquila)  16% 15% 14% 12% 18% 
Transportation and logistics  6% 6% 6% 7% 7% 
Automotive  6% 7% 6% 6% 8% 
Telecommunications  4% 4% 4% 5% 2% 
Electricity - electronics  4% 5% 4% 2% 1% 
Mining - metallurgy  4% 4% 3% 2% 1% 
Other enterprises  28% 34% 33% 32% 25% 
Source:  Bancomext annual reports. Viewed at: 
https://www.bancomext.com/conoce -bancomext/bancomext -en-cifras/informe -anual . 
 
122 The sectors deemed strategic in 2021 were aerospace, the automotive industry, electrical -electronic 
components, energy, the maquila industry and industrial facilities , mining and metallurgy, telecommunic ations, 
transport ation and logistics, and tourism. Viewed at: http://www.bancomext.com/empresas -que-
apoyamos/sectores -estrategicos . 
123 Bancomext (2021), Informe anual 2020 . Viewed at: 
https://www.bancomext.com/staticcontent/informe -anual -2020/files/Informe -Anual -2020.pdf . WT/TPR/S/429 • Mexico  
 
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  3.104.   Starting in 2020, Bancomext rolled out a new cre dit scheme at preferential rates through 
private banks ( T-MEC Foreign Trade Product (Bancomext)). The programme is intended to boost the 
productivity of exporting firms of all sizes, as well as those involved in trade, prior to the entry into 
force of the Mexico -United States -Canada Agreement (T -MEC), while also promoting diversification 
of their exports. The upper ceiling for borrowing is MXN  30 million (or USD equivalent). In 2020 
(financial year) MXN  500 million of counter -guarantee funds were earmarked to cover credit provided 
by commercial banks up to MXN  7 billion.124 
3.105.   Bancomext also promotes exports by means of other financial instruments such as the 
international factoring service and export letters of credit. Through the international factoring 
service, exporters obtain financing for up to 90 % of the value of the invo ice, among other things.125 
Bancomext issues letters of credit as a means of payment for exporting firms, reducing the need for 
Mexican exporting firms to perform credit checks on the purchasing company, given that the 
payment obligation rests with the bank s.126 
3.106.   The Foreign Trade Guarantee (formerly the Buyers' Guarantee) is a mechanism whereby 
Bancomext gives guarantees (for up to USD  3 million) to financial intermediaries located abroad so 
that they can finance the purchase of Mexican products and/or servic es. This instrument allows 
exporters to be paid for their goods and services in cash, thereby avoiding the credit risks and 
country risks of buyers.127 
3.107.   Mexico does not have any official export credit insurance programmes. Export credit 
insurance is offered through CESCEMEX, a company in which Bancomext has a minority holding. 
This insurance covers commercial risks arising from an importer's inability to cover debts 
(insolvency), specifically legal insolvency, de facto insolvency and prolonged payment arrears .128 
3.3  Other measures affecting production and trade  
3.3.1   Incentives  
3.108.   Mexico still implements a number of support programmes to promote exports, attract 
investment and create jobs. During the review period, Mexico notified various export subsidy 
programmes for the fisheries and aquaculture, film and high -technology and industrial development 
sectors. The most noteworthy of these are the IMMEX and PROSEC programmes.129 Mexico also 
notified training, and technical and financial assistance programmes, mainly for MSMEs a nd/or to 
promote research and development (R&D). Most of these programmes were already in place and 
had been notified at the time of the previous review in 2017. Tax incentives related to the of income 
tax (ISR) and the IEPS, and to of diesel fuel consumpt ion, among others, are still in force.  
3.109.   Mexico continues to implement sectoral promotion (PROSEC) programmes with the objective 
of promoting competitiveness.130 Through these programmes, which have not changed substantially 
since their establishment, inputs and machinery needed to produce  specific goods can be imported 
under  a preferential tariff, irrespective of whether the final good is consumed on the domestic market 
or exported. Each PROSEC lists the inputs by tariff line, showing the corresponding prefer ential tariff.  
3.110.   The only change since the previous review in terms of sectors covered by PROSEC 
programmes was the introduction  of a programme for the fertilizer sector. However, the benefit of 
the PROSEC for this sector is limited as it only includes two t ariff lines. The PROSEC programmes 
with the largest number of inputs with preferential tariffs are those for the automotive and auto 
parts industry, and the electronics and the electricity industries. The total number of tariff lines 
 
124 WTO document G/SCM/N/372/MEX of 12 January 2022 and online information: 
https://www.bancomext.com/pymex/productos/comercio -exterior -tmec. 
125 Bancomext. Viewed at: https://www.bancomext.com/pymex/productos/factoraje -internacional . 
126 Bancomext. Viewed at: https://www.bancomext.com/pymex/productos/cartas -de-credito/cartas -de-
credito -de-exportacion . 
127 Bancomext. Viewed at: https://www.bancomext.com/pro ductos -y-servicios/garantias/garantia -
comprador . 
128 Information  viewed  at: https://www.gob.mx/cms/uploads/attachment/file/63793/GuiaBasicaDelExpo
rtador.pdf . 
129 WTO document G/SCM/N/372/MEX of  12 January 2022.  
130 Decree establishing variou s sectoral promotion programmes (latest amendment 
on 29 November  2012).  WT/TPR/S/429 • Mexico  
 
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  covered by PROSEC prog rammes in 2021 (May) was  2,487. The most common preferential tariff 
rates granted under PROSEC programmes, in 2021, were 0 % and 5 %, which were applied to  76.2% 
and 19.1 % of the tariff lines covered, respectively (Chart 3.7).  
Chart. 3.7 Inputs covered by the various PROSEC programmes, 2021  
(Industry)  
 
Source:  Undersecretariat for Foreign Trade, Directorate -General for Trade Facilitation and Foreign Trade. 
Decree establishing various sectoral promotion (PROSEC)  programmes , Tariff Structure of Article 5 
of the PROSEC decree (in force since 17  May 2021), tariff schedule under  the LIGIE. Viewed at: 
https://www.snice.gob.mx/cs/avi/snice/prosecmsbiblioteca.html . 
3.111.   Mexico also grants other tax incentives, such as exemption from the income tax, tax credits, 
and exemption from payment of the I SAN for electric vehicles (Table 3.17). Some of the tax 
incentives granted under the Federal Revenue Law, valid in principle for one year, which were in 
effect at the time of the previous review in 2017, still remain in effect.  
Table 3.17 Some tax incentives, 2022  
Name of programme  Description  Legal instrument  
Exemption from payment 
of income tax for income 
earned from crop farming, 
livestock farming, forestry 
and fishing  Legal persons engaging exclusively in crop 
farming, livestock farming, forestry and 
fishing do not pay income tax as long as their 
annual income does not exceed the 
equivalent of 20 times the annual value of 
the Unit of Measurement and Update (UMA) 
for each partner, although the  total may not 
exceed 200 UMA.  
Natural persons carrying out these activities 
do not pay the tax while their annual income 
does not exceed the equivalent of 40 UMA.  Article 74, eleventh paragraph, 
of the Income Tax Law (Official 
Journal of 11 December 2013)  
Reduced rate of the income 
tax applicable to the 
primary and agro -industrial 
sector  Natural and legal persons engaging 
exclusively in crop farming, livestock 
farming, forestry and fishing activities may 
receive a reduction of 40% and 30% in the 
payment of income tax, respectively.  Article 74, twelfth paragraph of 
the Income Tax Law (Official 
Journal of 11 December 2013)  
Tax incentives for 
generating energy from 
renewable sources  100% income tax deduction of the cost of 
machinery and equipment us ed to generate 
renewable energy or of systems for the 
efficient co -generation of electricity.  Article 34, Section XIII of the 
Income Tax Law (Official 
Journal of 1 December 2004)  
0 50 100 150 200 250 300 350 400 450 500 550 600242322212019181716151413121110987654321
0% 2.5% 3% 5% 7% 10%
Number of lines14 Pharmaceutical products, medicines and
medical equipment
15 Transport, except the automotive and 
autoparts industry
16 Paper and cardboard
17 Wood
18 Leather and skins
19 Automotive and autoparts
20 Textiles and clothing
21 Chocolate, confectionery and similar
22 Coffee
23Food and sugar
24 Fertilizers1 Electricity
2 Electronics
3 Furniture
4Toys, games and sport requisites
5 Footwear
6 Mining and metals
7 Capital goods
8 Photography
9 Agricultural machinery
10 Miscellaneous industries
11 Chemical
12 Rubber and plastic goods
13 S teelWT/TPR/S/429 • Mexico  
 
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  Name of programme  Description  Legal instrument  
Incentive for the use of 
electronic payment 
methods  Financial institutions t hat promote the use of 
electronic payment methods obtain a credit 
against their income tax or the amount 
withheld from third parties for the same tax.  Decree granting fiscal 
incentives to encourage the use 
of electronic payment methods 
(Official Journal of  
28 October  2021)  
ISAN exemption/reduction  Exemption:  
Definitive export;  
Definitive disposal or import of electric 
automobiles and hybrid automobiles;  
Disposal of new automobiles below 
MXN 292,552.57.  Federal Law on New 
Automobiles (Official Journal 
of 12 November 2021)  
Quantities updated by Annex 15 
to the Omnibus Tax Resolution 
(Official Journal of 
28 December  2021)  50% exemption:  
Disposal or import of automobiles with 
a value between MXN 292,552.58 
and MXN 370,566.61.  
Tax incentive for 
investment in domestic 
theatrical productions; in 
the editing and publication 
of national literary works; 
visual arts; dance; music, 
in the specific areas of 
orchestra, instrumental and 
vocal music in concert, and 
jazz. Tax credit against Mex ican income tax, 
equivalent to the invested amount. However, 
it may not exceed 10% of the income tax 
assessment for the fiscal year immediately 
prior to its application.  Article 190 of the Income 
Tax Law (Official Journal 
of 19 November 2010)  
Tax incentive for 
technology R&D projects  Tax credit against income tax equivalent 
to 30% of the investment cost.  Article 202 of the Income 
Tax Law (Official Journal 
of 30 November 2016)  
Tax incentive for 
investment in electric 
vehicle charging equipment  Tax credit equivalent to 30% of the 
investment cost in electric vehicle charging 
equipment.  Article 204 of the Income 
Tax Law (Official Journal 
of 30 November 2016)  
Withholding scheme for 
persons earning income 
through digital platforms.  A lower  withholding rate will apply to 
taxpayers who sell goods or provide services 
through the Internet. The amount withheld 
may be provisional or definitive, as 
appropriate.  Articles 113 -A, 113 -B 
and 113-C of the Income 
Tax Law (Official Journal 
of 9 December 2 019) 
Tax incentive for the import 
or disposal of fruit or 
vegetable juices, nectars 
and concentrates and drink 
products that may contain 
milk. 100% VAT credit on the import or disposal of 
the stated products.  Decree compiling various tax 
benefits and establishing 
measures to simplify 
administrative procedures  
(Official Journal of 
26 December  2013)  
Incentives granted under 
the Federal Revenue Law  Persons engaging in business activities, 
with total annual income of less 
than MXN 60 million, who import or 
purchase, for final consumption, diesel or 
biodiesel or mixtures thereof, to be used 
exclusively as fuel for machinery in general 
(except vehicles) may credit an amount 
equivalent to the IEPS against the taxpayer's 
income  tax assessment for the fiscal year in 
which the fuel is imported or purchased.  Article 16 Federal Revenue 
Law for fiscal year 2022  
(Official Journal of  
12 November 2021)  WT/TPR/S/429 • Mexico  
 
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  Name of programme  Description  Legal instrument  
Persons who import or purchase diesel or 
biodiesel and mixtures thereof for final 
consumption and to be used in agricultural or 
forestry activities, and whose income in the 
previous year has not exceeded 20 times the 
annual value of the UMA may credit an 
amount equivalent to the IEPS against the 
taxpayer's income tax assessment fo r the 
year in which the fuel is imported or 
purchased, or request the reimbursement of 
the amount.  
Persons who import or purchase diesel or 
biodiesel and mixtures thereof to be used in 
public or private vehicles for the transport of 
passengers, freight or tourists may credit an 
amount equivalent to the IEPS against the 
taxpayer's income tax assessment for the 
fiscal year in which the fuel is imported or 
purchased.  
Persons who engage exclusively in public and 
private land transport,  of freight, passengers 
or tourists, who use the national network of 
toll motorways, and whose total annual 
income is less than MXN 300 million, may 
credit up to 50% of the total toll charges 
against the taxpayer's income tax 
assessment for the fiscal year  in which the 
expenses are incurred.  
The IEPS paid on the purchase and 
importation of fossil fuels, according to their 
carbon content and provided that they are 
not combusted, may be credited against the 
taxpayer's income tax assessment for the 
fiscal y ear in which the fuel is purchased.  
Holders of mining concessions and 
allocations, for the sale or disposal of 
minerals and substances specified in the 
Mining Law, whose annual gross income does 
not exceed MXN 50 million, may deduct the 
special levy on mining activities paid from 
their income tax.  
Natural and legal persons, resident in 
Mexico, who dispose of books, newspapers 
and magazines may obtain an additional 
income tax deduction for an amount 
equivalent to 8% of the acquisition cost, 
provided  that this activity accounts for at 
least 90% of their total income and does not 
exceed MXN 6 million.  
Tax incentive for 
automobile fuel in 
connection with the IEPS  Persons who import and dispose of 
automobile fuel may qualify for a reduction of 
the IEPS payable on the fuel.  Decree establishing fiscal 
incentives related to the special 
tax on production and services 
payable on the fuels listed 
(Official Journal of 
27 December  2016 and 
subsequent amendments 
thereto).  
Source:  WTO Secretariat . 
3.112.   In addition to tax incentives, Mexico has other direct support, credit and guarantee 
programmes for SMEs and MSMEs, and to promote competitiveness and experimental R&D. It also 
has programmes specific to particular sectors such as agriculture, forestry, touri sm and the film 
industry (Table 3.18).  
3.113.   Nacional Financiera (NAFIN), which has been operating for several decades as a development 
bank, continues to offer support to boost growth in strategic sectors, by facilitating MSMEs' access WT/TPR/S/429 • Mexico  
 
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  credit, with guarantee sc hemes and financing programmes, in coordination with commercial 
banks.  NAFIN also promotes the financial inclusion of women and all regions of the country.131 
Table 3.18 Main support programmes, 2017 -22 
Entity  Programme  Type of support (validity)  
Ministry of the 
Economy (SE)  
 National financing programme for 
microenterprises and rural women 
(PRONAFIM)  Credit (until 2019)  
Financial Support Programme for Family 
Microenterprises, Crédito a la Palabra  Financial support (until 2021)  
Microcredit Programme for 
Well-being  Support through funding, and 
advice and training  
National business fund  Financial support (until 2019)  
National Guarantees Scheme ( México 
Emprende  Trust Fund)  Guarantee (until 2020)  
Software Industry Development 
Programme (PROSOFT)  Financial  support (until 2020)  
Industrial Productivity and 
Competitiveness Programme (PPCI).  Financial support  
Programme Promoting the Social 
Economy  Financial support (until 2021)  
National Science and 
Technology Council 
(CONACYT)  Programme to Encourage Research, 
Technological Development and 
Innovation (PEI)  Financial support (until 2017)  
Technological innovation to increase the 
productivity of firms (2017 -18) Economic support (until 2018)  
Regional promotion of scientific, 
technological and innovation capacity 
(2017, 2018, 2019, 2020)  Economic support (until 2020)  
Promotion of scientific and technological 
infrastructure (2017, 2018)  Economic support (until 2018)  
Sectoral strengthening of scientific, 
technological and innovation skills (2017, 
2018, 2019, 2020)  Economic support (until 2020)  
Support for scientific, technological and 
innovation activities (2018, 2019, 2020)  Economic support (until 2020)  
National strategic programmes for 
science, technology and creating links 
with the social, public and private sector 
(2021 -22) Economic support  
Tax Incentive for Technology Research 
and Development (EFIDT)  Tax credits against income tax 
(until 2017)  
CONACYT Institutional Fund  Economic support (until 2020)  
Institutional Fund to Promote Science, 
Technology and Innovation (FORDECYT)  Economic support (until 2020)  
Mixed Funds (FOMIX)  Economic support (until 2020)  
International Cooperation Fund for 
Science and Technology (FONCICYT)  Economic support (until 2020)  
Sectoral Funds (FOSEC)  Economic support (until 2020)  
Ministry of 
Agriculture, Livestock, 
Rural Development, 
Fisheries and Food 
(SAGARPA) (currently 
SADER)  Programme to support women 
entrepreneurs' productivity (PROMETE)  (until 2017)  
Programme to support young 
entrepreneurs in agriculture  (until 2017)  
Productivity and agri -food 
competitiveness programme  (until 2019)  
SADER  DICONSA, S.A. de C.V.  Rural supply 
programm e Food 
LICONSA, S.A. de C.V.  Programme for 
supplying milk  Food 
Fertilizers Programme for Well -being  Fertilizers  
Programme for the Promotion of 
Agriculture, Livestock, Fisheries and 
Aquaculture  Financial support  
Guaranteed Prices Programme for Basic 
Foods  Funding  
 
131 NAFIN. Viewed at: https://nafin.com/portalnf/content/financiamiento . WT/TPR/S/429 • Mexico  
 
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  Entity  Programme  Type of support (validity)  
Production for Well -being Programme  Funding  
Agri-food Health and Safety Programme  Technical support  
Crédito Ganadero a la Palabra  (livestock 
farming credit at a word) programme  Support in kind  
Marketing support programme  Funding (until 2020)  
National Forestry 
Commission  Support Programme for Sustainable 
Forestry Development  Financial support  
Ministry of the Navy 
(SEMAR)  Port construction projects (2021)  Financial support for construction 
and maintenance.  
Ministry of Tourism  Regional Sustainable Tourism 
Development and Magical Towns 
Programme (PRODERMAGICO)  Means of recourse for tourism 
infrastructure  
(until 2018)  
Promotion of Mexico as a tourist 
destination  Technical support  
 
Encouraging and promoting investment in 
the tourism sector  Technical support  
Tourism infrastructure projects  Technical support  
Mass passenger transport project  Technical assistance (until 2018)  
Nacional Financiera 
(NAFIN)  
 SME Loans  Guarantee  
Loans for the Crecer Juntos  programme  Guarantee (until 2021)  
Financing of transport MSMEs  Guarantee  
Financing for technical modernization  Guarantee (until 2017)  
Women -led SMEs  Guarantee (until 2021)  
Loans for the construction industry  Guarantee (until January 2022)  
Green Business Loan  Guarantee  
Green Individual Loan  Guarantee (until 2020)  
C-solar funding  Guarantee  
Financing for the leather and footwear 
sector  Guarantee (until 2021)  
Financing for automobile dealers  Guarantee (until 2019)  
Support for the textiles, clothing and 
fashion industry  Guarantee (until 2021)  
RIF Women ( Crezcamos juntas ) Guarantee  
RIF youth loans  Guarantee (until 2021)  
RIF consumption programme  Guarantee (until 2018)  
Security Guarantee  Guarantee  
Production Chains Programme  Factoring  
Economic recovery - federal govern ment 
suppliers' contract  Guarantee  
Economic recovery - Sectoral 
Development  Guarantee  
Economic recovery - Financial Inclusion  Guarantee (until 2021)  
Franchises  Guarantee (until 2019)  
Impulso + Hoteles  (hotel sector stimulus)  Guarantee (until 2021)  
Impulso + Estados  (state -level stimulus)  Guarantee  
Petrol Station Supplier Contracts  Guarantee (until 2021)  
T-MEC toolkit  Guarantee (until 2021)  
Ven a comer logo to promote Mexican 
gastronomy  Guarantee (until 2022 (February))  
SME Youth Loans  Guarantee (until 2021)  
Impulso + Credisuministros  (value chain 
stimulus)  Guarantee  
Source:  Catálogo de Programas Sociales Federales Susceptibles de Vinculación con la CEAV - 2021. 
Viewed  at: 
https://www.gob.mx/cms/uploads/attachment/file/669248/Cat_logo_Programas_Sociales_2021.pdf . 
3.3.2   Technical regulations and standards  
3.114.   The Federal Law on Metr ology and Standardization (LFMN)132 regulated the national quality 
system until mid -2020, when it was repealed and replaced by the Law on Quality Infrastructure 
(LIC).133 The drafting of the regulations implementing the LIC has not yet been finalized; theref ore 
 
132 Federal Law on Metrology and Standardization  (Official Journal of 1 July 1992, latest amendment 
on 18 December 2015).  
133 Law on Quality Infrastructure (Official Journal of 1 July 2020).  WT/TPR/S/429 • Mexico  
 
- 90 - 
 
  the LFMN regulations134 continue to be used, unless they conflict with the LIC. The purpose of this 
Law is to set and develop the basis for industrial policy within the National Quality Infrastructure 
System, through standardization, harmonization, accr editation, conformity assessment and 
metrology activities, to promote quality in the production of goods and services, with a view to 
expanding productive capacity, achieving continuous improvement in value chains, promoting 
international trade and protect ing legitimate public interest objectives.135 In addition to the LIC and 
the Guide to the structuring and drafting of Standards, there are other laws that also influence 
standardization procedures.136 
3.115.   The National Commission for Quality Infrastructure (CNIC)  (formerly National 
Standardization Commission) and the Directorate -General of Standards (DGN) of the Ministry of the 
Economy (SE) are responsible for applying the LIC. The SE remains the contact point for the TBT  
Agreement.137 
3.116.   The CNIC manages and coordina tes standardization, harmonization, conformity assessment 
and metrology activities; evaluates requests for the establishment of national advisory committees 
on standardization (responsible for preparing Mexican Official Standards (NOMs)) proposed by 
minist ries (the standardization authorities); and, on an annual basis, reviews, analyses and approves 
the National Quality Infrastructure Programme (formerly the National Standardization Programme) 
and its Supplement.138 In 2021, the SE took over as the permanent  chair of the CNIC.  
3.117.   Mexico issues NOMs (technical regulations) and Mexican Standards (NMXs) (specifications 
or standards). For technical regulations relating to telecommunications and broadcasting, the 
Federal Telecommunications Institute (IFT) issues "Tec hnical Provisions" ( Disposiciones Técnicas ), 
which, like NOMs, are published in the Official Journal to make them binding.  
3.118.   There has been no change to the procedure for preparing, issuing and reviewing NOMs since 
the previous review. In accordance with the LIC, NOMs must be based, in whole or in part, on 
international standards, except where these are not appropriate or effective in achieving the desired 
public interest objectives (Chart 3.8). In the event of an emergency that affects the  public interest, 
the competent Standardization Authority may issue the NOM directly and inform the CNIC. 
Emergency NOMs remain valid for a maximum of six months and may be renewed once for a further 
six months.139 
 
134 Regulations implementing the Federal Law on Metrology and Standardization (Official  Journal 
of 14 January  1999; l atest amendment on 28  November  2012).  
135 Information provided by the authorities.  
136 These can include: the Federal Consumer Protection Law, the General Law on Health, the General 
Law on Ecological Balance and Environmental Protection, the Federal Telecommun ications and Broadcasting 
Law, and the Federal Labour Law.  
137 Viewed at: http://tbtims.wto.org/en/NationalEnquiryPoints/Search . 
138 National Quality Infrastructure Programme 2021 (Official Journal of 25 February 2021).  
139 Emergencies are considered to be instances in which steps must be taken to prevent imminent 
injury, or to mitigate or remove existing injury to any legitimate public interest objective (Article 32 of 
the LIC). WT/TPR/S/429 • Mexico  
 
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  Chart 3.8 NOM preparation procedure  
 
Source:  Information provided by the authorities.  
3.119.   The SE has developed a catalogue of NOMs and NMXs in force or rescinded, as well as 
draft NOMs in public consultation.140 This catalogue will be part o f the new Comprehensive 
Technology Platform for Quality Infrastructure (PLATIICA), which is being developed by the SE to 
provide information to the entire National Quality Infrastructure System.  
3.120.   NOMs must be reviewed by the Standardization Authority within  five years of their 
publication in the Official Journal or their latest amendment. This review must be completed 
within  60 days of the end of the corresponding five -year period. The outcome of this review is notified 
to the CNIC Executive Secretariat. If the Standardization Authority does not review the NOM or 
notify the review report, the CNIC must conduct this review and could order the rescission of the 
NOM. In the case of the Technical Provisions, the IFT carries out the review five years after their 
entry into force.  
3.121.   Over the period 2017 -21, 212 draft NOMs were published in the Official  Journal, of 
which  84 became NOMs and 1 was rescinded. During the same period, 174 NOMS were published in 
the Official Journal, of which 20 were based on international s tandards (16 partially and 4  fully). 
During 2017 -21, 455 NOMs were reviewed, 81 were amended and 6 removed.141 
3.122.   During 2017 -21, Mexico notified the WTO Committee on Technical Barriers to Trade 
of 168 technical regulations relating mainly to the protection of  human health and the environment, 
and consumer protection and information (labelling). In addition, Mexico notified the amendment 
of 238 previously notified technical regulations.142 In 2017 -21, on four occasions certain Members 
posed questions in the TBT Committee about NOMs related to conformity assessment procedures 
 
140 Information from SINEC. Viewed at: 
https://www.sinec.gob.mx/SINEC/Vista/Normalizacion/BusquedaNormas.xhtml . 
141 Information provided by the authorities.  
142 Information from the WTO. Viewed at: http://tbtims.wto.org . 
WT/TPR/S/429 • Mexico  
 
- 92 - 
 
  for cheese and curd (HS 0406); measures restricting the sale of food and beverages to children; 
health -related advertising; and labelling for pre -packaged food and non -alcoholic beverages.143 
3.123.   NOMs are mandatory for both domestic and imported products. Importers must 
demonstrate, at the point of entry into the country, that the goods comply with the NOM in question. 
In the case of NOMs relating to marking and labelling, the importer has several options for checking 
compliance with NOMs upon customs clearance: (a) submit the goods with the commercial 
information labels required by the NOM, so that the authorities can verify that they comply with the 
requirements; (b) submit the goods with the labe ls required by the NOM and a copy of the "certificate 
of conformity" issued by an accredited inspection unit. In the case of NOMs issued on the basis of 
the IFT's Technical Regulations, the provisions of the conformity assessment procedures published 
in the Official Journal shall be followed, in addition to what, in particular, each of the Technical 
Provisions may indicate.144 When imported products do not comply with the requirements of a NOM 
relating to marking and labelling, the customs authorities shall proceed to detain the goods and set 
a time limit for the importer to make the necessary corrections. In the event of failure to comply 
with product safety NOMs, the customs authorities shall proceed to the precautionary seizure of the 
goods, which may be t ransferred to the tax authorities.145 
3.124.   In 2021, imports corresponding to 2,483 tariff lines had to comply with a NOM.146 The NOMs 
applied mainly to textile articles, and machinery and mechanical appliances, followed by prepared 
foodstuffs, chemical products a nd metals (Chart 3.9). 
Chart 3.9 NOMs by HS section, 2021  
(Number of tariff lines)  
 
Source:  WTO Secretariat calculations, on the basis of data provided by the authorities.  
3.125.   NMXs or standards are generally voluntary, although they may serve as a reference for the 
correct application or preparation of a NOM. The procedure for preparing NMXs or standards is very 
similar to that of NOMs (Chart 3.10). Both NMXs or standards and NO Ms must be registered with 
the National Quality Infrastructure Programme or in the Supplement thereto, and must be based on 
 
143 Information from the WTO. Viewed at: 
https://tradeconcerns.wto.org/es/stcs?searchParameterDomainIds=1&searchParameterSubjectMembers=C484
&searchParameterYearsRange=2017%2C2021 . 
144 In this case, the "Telecommunications and Broadcasting Conformity Assessment Proc edure" (Official 
Journal of 25 February 2020) is followed in order to obtain a certificate of conformity.  
145 Information provided by the authorities.  
146 Online information. Viewed at: https:/ /www.snice.gob.mx/cs/avi/snice/n.ligie.2020.html . 
6888
19199
5156
6952
144840
70
44
6152372
5384
9152
050100150200250300350400450500550600650700750800850900
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20HS section:
1 -Live animals
2 -Vegetable products
3 -Fats and oils
4 -Prepared foodstuffs
5 -Mineral products
6 -Chemical products
7 -Plastics
8 -Skins and leather
9 -Wood
10 -Paper or paperboard
11 -Textile articles
12 -Footwear
13 -Articles of stone
14 -Pearls, precious metals
15 -Base metals
16 -Machinery and mechanical appliances
17 -Transport equipment
18 -Instruments
19 -Arms and ammunitions
20 -Miscellaneous manufactured articlesWT/TPR/S/429 • Mexico  
 
- 93 - 
 
  international standards, except where this is not effective or appropriate. In addition, under no 
circumstances may NMXs or standard s contain specifications, characteristics, values, parameters or 
requirements that are less stringent than those set out in a NOM.  
Chart 3.10 NMX preparation procedure  
Source:  Information provided by the authorities.  
3.126.   NMXs or standards are developed by a national standardization body147 or by the 
Standardization Authorities. Pursuant to the LIC, it is the responsibility of the Technical 
Standardization Committee (CTE) to analyse the draft NMX or standard; if  approved, the SE is 
notified so that it can publish an extract on PLATIICA, and a public consultation is initiated, lasting 
at least 60  calendar days starting from the calendar day following its publication on the Platform. 
When the DGN has prepared the N MX or standard proposal, the entire draft is published on PLATIICA. 
Once the comments have been received, the CTE decides which ones will be included and which 
ones will not, and informs those who submitted comments that were not included. Once the NMX or 
standard has been finalized, the SE publishes it on the Platform, which is in the process of being 
developed.148 
3.127.   The national standardization body issuing an NMX or standard must review it at least every 
five years after its publication or latest amendment.  The CNIC's Executive Secretariat must be 
notified of the outcome of the review within 60 days of the end of the corresponding five -year period. 
The SE publishes the outcome of the review on the Platform. The CNIC may order the rescission of 
the standard i f it is not reviewed.  
3.128.   Conformity assessment procedures are prepared by the Standardization Authorities. In 
accordance with the LIC, these procedures, as with the NOMs, must be based on international 
standards, except where these are not appropriate or effe ctive in achieving the public interest 
objectives pursued by the State, and each one that contains the conformity assessment procedure 
required to determine compliance must be included in the NOMs. The IFT is the authority that issues 
 
147 The registered National Standardization Bodies (ONEs) are: Mexican Standardization Society S.C. 
(NORMEX), Mexican Institute for Standardization and Certification A.C. (IMNC), Standardization and 
Certif ication Association A.C. (ANCE), National Textile Standardization Institute A.C. (INNTEX), National 
Standardization and Certification Body for Construction and Building S.C. (ONNCCE), Electronic Standardization 
and Certification S.C. (NYCE), Milk and Milk Products Quality Promotion Council, A.C. (COFOCALEC), National 
Chamber of the Iron and Steel Industry (CANACERO) and Underwriters Laboratories, Inc. (UL).  
148 The current platform can be viewed at: 
https://www.sinec.gob.mx/SINEC/Vista/Normalizacion/BusquedaNormas.xhtml . 
WT/TPR/S/429 • Mexico  
 
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  telecommunications an d broadcasting conformity assessment procedures, pursuant to the Federal 
Telecommunications and Broadcasting Law.  
3.129.   Conformity assessment is generally carried out by accredited and approved conformity 
assessment bodies. However, in the absence of adequate in frastructure in the private sector, the 
Standardization Authorities can carry this out. In order to operate as an accreditation body, 
authorization from the SE is required, subject to a favourable opinion from the CNIC. An accreditation 
entity may operate in one or more areas, sectors or branches. Also, only bodies that are accredited 
with an accreditation entity may operate as conformity assessment bodies. Conformity assessment 
bodies can operate as: testing, measurement or calibration laboratories; inspec tion units; or 
certification bodies. The SE keeps a list of accreditation entities and conformity assessment bodies, 
which is published on PLATIICA, with the rates and prices charged (Articles 44 and 45 of the LIC). 
With regard to telecommunications and br oadcasting conformity assessment, the IFT has the power 
to authorize third parties to issue conformity assessment certification, to accredit experts and 
verification units, and to establish and operate testing laboratories or to authorize third parties to 
do so. The IFT has issued various provisions on telecommunications and broadcasting conformity 
assessment.149 
3.130.   In 2021, Mexico had Mutual Recognition Agreements (MRAs) mainly in the areas of electrical 
engineering, energy and medical devices, with entities i n Belgium; Canada; Denmark; China; the 
Republic of Korea; Colombia; the United States; Finland; Hong Kong, China; Japan; Norway; 
Thailand; and the European Union.150 
3.3.3   Sanitary and phytosanitary measures  
3.131.   Procedures for preparing  sanitary and phytosanitary (SP S) measures are stipulated in the 
2020 LIC, which repealed the 1992 Federal Law on Metrology and Standardization, as well as specific 
laws on the subject. Some of these laws were amended during the review period, for example, the 
Federal Law on Plant Healt h, the Federal Law on Animal Health and the Law on Health. However, as 
in the case of the LIC151, some of the regulations necessary for the implementation of the 
amendments have not been updated (Table  3.19). The regulatory authorities publish lists of the 
products subject to animal health requirements, as well as the different requirements, on their 
websites. The legal basis for these lists are Decisions ("modules"), which are modified to take into 
account changes in the plant and animal health situation.  
Table 3.19 Main legal instruments that regulate the sanitary and phytosanitary 
system,  2021  
Legislation  Publication in the Official 
Journal/latest amendment 
published in the Official Journal  
Law on Quality Infrastructure  1 July 2020  
Regulations implementing the Federal Law on Metrology and 
Standardization  28 November 2012  
Federal Law on Plant Health  26 December 2017  
Regulations implementing the Federal Law on Plant Health  15 July 2016  
Federal Law  on Animal Health  16 February 2018  
Regulations implementing the Federal Law on Animal Health  21 May 2012  
General Law on Health  19 February 2021  
Regulations on Sanitary Control of Products and Services  12 February 2016  
Regulations for Health Inputs  21 May 2021  
 
149 Guidelines for the accreditation, authorization, designation and recognition of testing laboratories 
(Official Journal of 7 March 2016); Guidelines for t he accreditation of telecommunications and broadcasting 
experts (Official Journal of 20 February 2017, latest amendment on 19 June 2018);Guidelines for the 
accreditation and authorization of verification units (Official Journal of 6 February 2020); Telecom munications 
and Broadcasting Conformity Assessment Procedure (Official Journal of 25 February 2020 and its amendment 
of 27 December 2021); Guidelines for the accreditation and authorization of telecommunications and 
broadcasting certification bodies (Offic ial Journal of 8 July 2021) (which entered into force in July 2022); and 
Guidelines for the authorization of telecommunications and broadcasting accreditation bodies (Official Journal 
of 9 July 2021) (which entered into force in July 2022).  
150 Viewed at: https://www.snice.gob.mx/cs/avi/snice/noms.acuerdosmutuos.html . 
151 In January 2022, the Executive Branch had not yet issued the regulations implementing the LIC, and 
therefore the Regulations implementing the Federal Law on Metrology and Standardization continued to be 
used, insofar as no conflict arises with the LIC.  WT/TPR/S/429 • Mexico  
 
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  Legislation  Publication in the Official 
Journal/latest amendment 
published in the Official Journal  
General Law on Sustainable Forestry Development (LGDFS)  13 April 2020  
Regulations implementing the General Law on Sustainable Forestry 
Development  9 December 2020  
Law on Biosafety of Genetically Modified Organisms  6 November 2020  
Regulations implementing the Law on Biosafety of Genetically 
Modified Organisms  6 March 2009  
General Law on Sustainable Fisheries and Aquaculture  4 June 2018  
Law on Organic Products  7 February 2007  
Regulations implementing the Law on Organic Products  8 April 2010  
Source:  WTO Secretariat, on the basis of information provided by the Mexican authorities.  
3.132.   The bodies responsible for drafting and implementing SPS measures remain the same as 
in 2017 (Table 3.20). The Directorate -General of Standards of the SE is the national enquiry point 
designated by Mexico in the framework of the WTO Agreement on the Application of Sanitary and 
Phytosanitary Measures (SPS Agreement).152 The national agricultural health, safety and quality 
policy seeks to maintain and impro ve agri -food health and safety conditions, through surveillance 
systems to reduce the risk of pests being introduced, epidemics and contamination, by controlling 
and eradicating existing ones, and by adopting good practices in the production and primary 
processing of products.  
Table 3.20 Institutions responsible for the sanitary system, 2022  
Institution  Function  
National Health, Food Safety and 
Agri-food Quality Service (SENASICA) 
of SADER  Enforces and monitors compliance with provisions on agri -food 
health, safety and quality for plant, animal, fishery and 
aquaculture products and by -products.  
Prepares and issues NOMs, decisions and other legal provisions.  
Determines requirements, quarantine regulations  and sanitary 
safety measures.  
Regulates and promotes the implementation and certification of 
risk reduction systems.  
Federal Commission for Protection 
against Health Risks (COFEPRIS) of 
the SSA Enforces, oversees and certifies compliance with health 
provisions (for the production, distribution, import and export 
of products for human use and consumption).  
Prepares and issues NOMs.  
SEMARNAT  Prepares and issues NOMs on forestry and land matters.  
Issues phytosanitary documents needed for the move ment, 
import or export of regulated forestry products and 
by-products.  
Interministerial Commission on Biosafety 
and Genetically Modified Organisms 
(CIBIOGEM)  Coordinates policy on the production, consumption, import, 
export and movement of genetically modified organisms 
(GMOs).  
Source:  WTO Secretariat.  
3.133.   In Mexico, SPS measures are established by means of a NOM. The procedure for 
preparing  NOMs on plant and animal health, fisheries, biosafety and agri -food safety matters is the 
same as that u sed for other NOMs. The objective of these is to prevent, control and combat pests 
and diseases that affect plant, animal, aquaculture and fishery species. Each unit prepares the 
preliminary drafts; and the respective subcommittees (which comprise the Nati onal Advisory 
Committee on Agri -food Standardization (CCNNA) of SADER or the National Advisory Committee on 
Environmental and Natural Resource Standardization (COMANART) of SERMANAT) carry out the 
relevant reviews and amendments, respond to comments and ap prove draft NOMs and, if it is 
deemed necessary, submit them for consideration to the CCNNA or COMANART. Interested parties 
may also submit proposals for preliminary drafts of NOMs. In these cases, the CCNNA carries out 
the appropriate evaluation and submi ts the preliminary draft for consideration to the subcommittee. 
The NOMs are reviewed every five years or earlier, in order to update them in line with scientific and 
technological developments and animal health campaigns. In urgent cases, an emergency NOM  can 
 
152 WTO online information. Viewed at: 
http://spsims.wto.org/es/EnquiryPointsNotificationAuthorities/Search?countryCode=C484&filter= . WT/TPR/S/429 • Mexico  
 
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  be prepared directly without the need for a preliminary draft or a draft. Emergency NOMs are valid 
for six months and may be renewed for a further six months.  
3.134.   According to the authorities, plant and animal health requirements are based on scientific 
principles and/or international recommendations153 and, as appropriate, on a risk analysis based on 
the phytosanitary and/or animal health situation in the geographical areas concerned, as well as of 
adjoining areas and areas with which there are trade flows.  
3.135.   In Mexico, phytosanitary, animal health and aq uacultural health requirements for imports 
are published in Decisions and/or NOMs, through the Phytosanitary Requirements Module, the 
Animal Health Requirements Module and the Aquacultural Health Requirements Module.154 The 
requirements for the import of ph ytosanitary, animal health and aquaculture and fishery goods are 
available online under the three aforementioned SENASICA Modules.155 These Modules consist of a 
catalogue of documents, called phytosanitary, animal health and aquaculture and fisheries 
requir ement sheets, drawn up to prevent the entry of animal, plant and aquaculture and fishery 
diseases and pests into Mexico.156 In the event of a plant or animal health emergency that poses a 
risk to plant or animal health in the country, SENASICA updates or mo difies the risk mitigation 
measures under the relevant Module, which enter into force immediately. In addition, in the event 
of an animal health emergency, the National Animal Health Emergency Mechanism (DINESA), which 
tackles diseases and coordinates thos e involved in order to avoid further damage to livestock and, 
as the case may be, to public health.157 Goods subject to phytosanitary or animal health 
requirements must also come from authorized countries that have sanitary services recognized 
by SADER.158 
3.136.   In 2021, Mexico had 74 NOMs relating to animal and plant health in force, 29 of which 
concerned animal health and aquaculture, 32 plant health, 9 agri -food safety and 4 forest health.159 
Between 2017 and 2021, Mexico notified 91 (regular) SPS measures to the  WTO, of which none 
were urgent. Products included rice and various fresh fruits, grains, plants and seeds. Mexico also 
notified amendments to 64 SPS measures that had already been notified. In the same period, 
six specific trade concerns on measures adopt ed by Mexico, affecting imports of chilies, shrimps, 
pork products/swine meat (two instances), hibiscus flowers and casein products were submitted to 
the SPS Committee.160 
3.137.   At the point of entry into the country, before customs clearance, importers of agricu ltural, 
vegetable, aquaculture and fishery products must demonstrate to the DGIF of SENASICA, or in the 
case of forestry products the Federal Environmental Protection Agency (PROFEPA) SERMANAT, that 
 
153 Mexico is a member of the Codex Alimentarius Commission (FAO/WHO) and the World Organization 
for Animal Health (WOAH), and is a  signatory of the International Plant Protection Convention (IPPC). It is also 
a member of regional bodies such as the North American Plant Protection Organization (NAPPO) and the 
International Regional Organization for Plant and Animal Health (OIRSA).  
154 Decision establishing the module of phytosanitary requirements for the import of goods regulated by 
the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food  with respect to plant health 
(Official Journal of 7 February 2012), Decision e stablishing which goods imports are regulated by the Ministry 
of Agriculture and Rural Development and regulating the issuing of certificates of origin for coffee exports 
(Official Journal of 26 December 2020) and Decision establishing the module of sanita ry requirements for the 
import of aquatic species, their products and by -products, and biological, chemical, pharmaceutical or food 
products for use or consumption by such species (Official Journal of 25 May 2012).  
155 Module  of requirements  for the import  of animal  health  goods.  Viewed  at: https://sistemasssl.senasic
a.gob.mx/mcrz/moduloConsulta.jsf ; Module  of phytosanitary  requirements  for the import  of goods  of plant orig
in. Viewed  at: https://www.gob.mx/senasica/documentos/modulo -de-requisitos -fitosanitario ; and Module of 
phytosanitary requirements for the import of aquaculture and fishery good s. Viewed at: 
https://www.gob.mx/senasica/documentos/modulo -de-consulta -de-requisitos -de-sanidad -acuicola -para-
importacion . 
156 This replaced the previous National System for the Consultation of Animal Health Requirements 
(SINORH). Online information viewed at: https://sistemasssl.senasica.gob.mx/mcrz/moduloConsulta.jsf . 
157 Information provided by the authorities.  
158 The NOMs relating to forestry products are available at: 
https://www.ccmss.org.mx/acervo/legislacion -forestal -mexicana -leyes-y-normas -federales . 
159 Information provided by the authorities.  
160 WTO information. Viewed at: 
https://tradeconcerns.wto.org/es/stcs?searchParameterDomainIds=2&searchParameterSubjectMembers=C484
&searchParamete rYearsRange=2017%2C2021 . WT/TPR/S/429 • Mexico  
 
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  the imported goods comply with the requirements indicated  under the corresponding Modules.161 
Where import requirements for products of animal or plant origin are not specified in the Modules 
on animal health or plant health import requirements, or in the case of aquaculture or fishery goods, 
are not specified in  a NOM or in a Decision, SENASICA must be contacted, or, in the case of forestry 
products, SEMARNAT.162 To verify compliance with the requirements, a documentary inspection 
(through the VUCEM) and physical inspection are carried out. Despite the fact that t he document 
review is digital, importers must submit the original documents when the physical inspection is 
carried out.163 If the requirements are met, the competent authority issues the relevant verification 
certificate or record. The interested party may  request that this be sent electronically (Table 3.21). 
In the event of a pest or disease that threatens the health of plants, animals or aquaculture and 
fishery species, import sanitary certificates may be rescinded and the necessary safety measures 
will be taken.  
3.138.   For products that do not require a prior import permit, a sanitary certificate issued by the 
competent authority in the country of origin must be submitted and the Ministry of Health (SSA) 
must be notified of the entry and destination of the good s. 
Table 3.21 Import certificates, 2021  
Products  Institution  Document  
Products of plant origin  SENASICA  Phytosanitary Import (or Export) Certificate  
Products of animal origin  SENASICA  Animal Health Import Certificate  
Products of aquaculture or 
fisheries origin  SENASICA  Aquaculture Health Import Certificate  
Wildlife species and their 
products, and forestry 
products  SEMARNAT/ 
PROFEPA  Verification Record modality D: hazardous materials and 
waste for the purpose of trade and industrialization  
Verification Record modality E: hazardous materials and 
waste for purposes that are different from trade and 
industrialization  
Products posing a risk to 
human healtha COFEPRIS  Prior sanitary import permit  
GMOs COFEPRIS  Prior sanitary import permit  
a For example, medicines; foodstuffs; beverages; perfumery, cosmetic and cleaning products; 
tobacco; pesticides; plant nutrients; biotechnology products; raw materials and additives used to 
prepare the aforementioned products; substances that are toxic or hazardous to health; and food 
supplements.  
Source:  WTO Secretariat.  
3.139.   Most goods subject to sanitary regulations also require non -automatic import licences (prior 
permits) ( Section 3.1.6). Thus, complianc e with the phytosanitary and animal health requirements 
does not exempt the importer from the obligation to obtain the permits required by other Ministries.  
3.140.   The Interministerial Commission on Biosafety and Genetically Modified Organisms 
(CIBIOGEM) is respo nsible for establishing policies on biotechnology safety and the safe use 
of GMOs.164 These activities are regulated by the Law on Biosafety of GMOs and its implementing 
regulations. The importation of GMOs for experimental release into the environment, for  pilot 
programmes or for commercial use, requires a permit issued by SADER and SEMARNAT, after a risk 
analysis has been conducted (Article 66 of the Law on Biosafety of GMOs). Subsequent imports do 
not require new permits, provided they concern the same GM O and the same area of release into 
the environment (Article 58 of the Law on Biosafety of GMOs).  
 
161 Wrapping or packaging material made from wood or of plant origin, containing imported goods, shall 
be subject to visual phytosanitary inspection by the DGIF, in order to determine the prophylactic measures 
required.  
162 Online info rmation from SENASICA. Viewed at: https://www.gob.mx/tramites/ficha/sol icitud -de-
requisitos -fitosanitarios -que-no-se-encuentren -en-el-modulo -de-requisitos -fitosanitarios -para-la-
importacion/SENASICA4836 . 
163 Information provided by the authorities.  
164 The CIBIOGEM is composed of the Ministers of SADER, SEMARNAT, the SSA, the Min istry of Public 
Education (SEP), the SHCP and the SE, as well as the head of the National Science and Technology Council 
(CONACYT) (Online information. Viewed at: https://www.gob.mx/senasica/acciones -y-programas/comision -
intersecretarial -de-bioseguridad -y-organismos -geneticamente -modificados  and 
http://conacyt.gob.mx/cibiogem/index.php/cibiogem/acerca -de-la-cibiogem ). WT/TPR/S/429 • Mexico  
 
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  3.141.   The marketing, importing and processing of GMOs intended for human use or consumption 
require authorization from COFEPRIS of the SSA. This Commission carries out a risk assessment, in 
accordance with scientific protocols, to determine the safety of GMOs and their products for human 
consumption. GMOs or products containing GMOs, which are intended for direct human consumption, 
must bear an explicit reference to GMOs and the label must include their food composition or 
nutritional properties, where these differ significantly from conventional products. SADER 
issues  NOMs specifying labelling for seeds or other material intended for sowing, cultivation and 
agricultu ral production, containing GMOs (Article 101 of the Law on Biosafety of Genetically Modified 
Organisms).  
3.142.   In order to ensure safety in food production processes, Mexico uses NOMs and NMXs that 
refer to various tools, such as the Hazard Analysis and Critical  Control Points (HACCP) system, which 
specify the minimum requirements for good hygiene practices that must be observed in the 
production process for foods, beverages or food supplements and their raw materials in order to 
avoid contamination throughout th e process.  
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.143.   Mexico's competition policy is governed by the Constitution (Article 28), the Federal Law on 
Economic Competition (LFCE)165 and, in the area of telecommunications, the Federal 
Telecommunica tions and Broadcasting Law (LFTR). To apply the LFCE, regulatory provisions have 
been issued.166 These provisions have not been substantially changed since Mexico's previous review 
in 2017; however, new regulatory provisions relating to, for example, the im munity programme 
have been issued.  
3.144.   The competition policy applies to all sectors of the economy and to all economic operators, 
public and private, Mexican and foreign, operating in and outside Mexico, as long as operations 
abroad affect competition in the Mexican market.  
3.145.   Monopolies are prohibited in Mexico, although activities reserved to the State do not 
constitute a monopoly ( Section 2.4).167 Nor are sales by producer associations or cooperatives who 
meet certain conditions (i.e. that the products are not essential, they are not sold nationwide, nor 
are they the region's main source of wealth) considered a monopoly.168 
3.146.   Mexico has two authorities that promote and guarantee competition: the Federal Economic 
Competition Commission (COFECE) and the Federal Telecommunications Institute (IFT), which are 
autonomous constitutional bodies ( Section 2.1). COFECE is the competition authority for all sectors 
of the economy, except the telecommunications and broadcasting sectors, in which case the 
competition authority is the IFT, which has the same powers that the COFECE has in other sectors. 
However, although the LFCE determines the specific competencies of each institution, if there was a 
disagreement about their competencies, it would be resolved in the Col legiate Circuit Courts on 
administrative matters, specialized in economic competition, broadcasting and 
telecommunications.169 Since 2017, four such cases have been resolved in the courts, three of which 
related to digital markets.170 
 
165 Federal Law on Economic Competition (Official Journal of 23 May 2014, latest amendment 
on 20 May 2021).  
166 Regulatory Provisions. Viewed at: https://www.cofece.mx/publicaciones/marco -juridico -y-normativo ; 
and Regulatory Provisions of the LFCE for the telecommunications and broadcasting sectors. Viewed at: 
http://www.ift.org.mx/industria/autoridad -investigadora/documentos -materia -economica . 
167 Article 28 of the Political Constitution of the United Mexican States and Article 6 of the LFCE.  
168 Articles 7 and 8 of the LFCE.  
169 Article 5 of the LFCE and information provided by the authorities.  
170 COFECE. Viewed at: https://www.cofece.mx/wp -conten t/uploads/2021/02/art -Uber-cornershop -
03febrero2021.pdf  and https://www.cofece.mx/el -poder -judicial -de-la-federacion -resuelve -que-la-cofece -es-
la-autoridad -competente -para-conocer -de-los-mercados -de-servicios -de-busqueda -en-linea-redes -sociales -y-
de-computo -en-la-nube; and OBSERVACOM ne ws item of 3 March 2021. Viewed at: 
https://www.observacom.org/ift -suspende -investigacion -sobre -mercados -digitales -en-mexico -lo-hara-el-
organismo -de-competencia -economica ; and information provided by the authorities . WT/TPR/S/429 • Mexico  
 
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  3.147.   Both COFECE and the IFT  have an Investigating Authority to conduct investigations into 
alleged anticompetitive practices and analyse possible illicit economic mergers. If there are 
indications, the COFECE Technical Secretariat or the Economic Competition Unit of IFT initiate the  
so-called " procedimiento seguido en forma de juicio ", a trial -like procedure, during which economic 
operators may present evidence against accusations presented by the Investigating Authority.171 A 
plenary session of the Commissioners decides the matter an d, if applicable, issues the resolution 
declaring the practice anticompetitive or the merger unlawful, and imposes the relevant penalty. 
Plenary decisions may be appealed before the courts specializing in economic competition, 
broadcasting and telecommunic ations172, although the execution of the order of the Plenary is not 
suspended during the appeal.  
3.148.   Investigations are initiated ex officio  by the Investigating Authorities upon receipt of a 
complaint by a party or following an immunity programme application request. The Executive Branch 
may also request an investigation be initiated, either itself or through the SE or the Federal 
Consumer Protection Agency (PROFECO). Requests from the Executive have "preferential 
status",  i.e. are processed more expeditiously .173 
3.149.   In Mexico absolute monopolistic practices (cartels) are proscribed and considered illegal 
per se.174 COFECE and the IFT have an immunity (clemency) programme through which the amount 
of the fine (which can be up to 10 % of the operator's income) is reduced for those companies that 
are part of a cartel or those individuals involved in a cartel on behalf of  a company, and who report 
it. Various companies or individuals may enter the programme, as the number of participants is not 
limited. However, the percentage by which the fine is reduced depends on the order in which the 
applicants enter the programme. Th e fine of the first is reduced almost fully, i.e. to the equivalent 
of 1 UMA.175 The fine of the second would be reduced by 50 %; that of the third by 30 %; and the 
fines of the fourth and subsequent applicants by 20 %.176 Involvement in a cartel may also be su bject 
to criminal sanctions; however, those who enter the immunity programme will have no criminal 
liability.177 
3.150.   Relative monopolistic practices are penalized only if they are committed by an operator who 
abuses their substantial market power to, inter alia , exclude other agents or prevent them from 
gaining market access, to create exclusive advantages in favour of third parties, or to impose 
exclusivity or tied or conditional sales contracts.178 A number of criteria, such as market share 
(percentage of sales ), the number of customers or productive capacity (the legislation does not 
stipulate thresholds), and whether there are barriers to entry and access to essential inputs, are 
taken into account when determining substantial power. However, relative monopoli stic practices 
are not sanctioned if they contribute to improving the efficiency of the economy and consumer 
well-being.179 
3.151.   In general, economic concentrations (merger, acquisition of control or any joint venture) 
conducted in Mexico and outside Mexico (whe n competition in the country is affected), and above a 
certain threshold, must be notified and authorized ex ante  by COFECE or the IFT (Box 3.2).180 
Nevertheless, the LFCE exempts certain economic concentrations from the notification requirement, 
even if th ey exceed the established thresholds. The exceptions are, for example, the acquisition of 
shares that does not change the control of the company or foreign operations that do not alter the 
 
171 COFECE. Viewed at: https://ww w.cofece.mx/conocenos/secretaria -tecnica -2/procedimientos -
seguido -en-forma -de-juicio . 
172 Information provided by the authorities.  
173 Article 66 of the LFCE; and Guide for the Initiation of Investigations into Monopolistic Practices 
by COFECE.  
174 A cartel is w hen competing operators agree on practices to fix or manipulate prices; limit supply; 
divide up markets; coordinate bids in public procurement processes; or exchange information with a view to 
adopting one of the aforementioned practices (Article 53 of the  LFCE).  
175 In 2022, the daily value of 1 UMA was fixed at MXN 96.22. Viewed at: 
https://www.inegi.org.mx/temas/uma . 
176 Article 103 of the LFCE.  
177 Article 254 bis of the Federal Criminal Code.  
178 Article 56 of the LFCE.  
179 COFECE (2015), Herramientas de competencia económica . Viewed at: 
https://www.cofece.mx/cofece/images/documentos_micrositios/herramientascompetenciaeconomica_250815_
vf1.pdf . 
180 Economic mergers are noti fied to the Technical Secretariat's Directorate -General of Mergers 
(COFECE) or the Directorate -General of Mergers and Concessions in the Economic Competition Unit (IFT).  WT/TPR/S/429 • Mexico  
 
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  Mexican company's shareholding structure (Article 93 of the LFCE). Similarly, according to the LFTR, 
provided there is a dominant economic operator in the telecommunications and broadcasting sectors, 
and in order to promote competition and develop viable competitors in the long term, IFT 
authorization is not required for economic concentrations between the other concession holders, 
even if they exceed the established threshold, as long as they meet certain requirements.181, 182 
Economic mergers may be authorized without conditions or under certain conditions to correct 
possible anticompetitive effects.183 
Box 3.2 Thresholds for notifying economic mergers, 2017 -21 
The price paid by the buyer exceeds 18  million times the UMA.  
The transaction involves the transfer of at least 35% of the shares (shares, assets or other), and the 
transaction operator has annual assets or sales exceeding 18  million times the UMA, in Mexico.  
The transaction involves the accumulation of assets or equity of more than 8.4  million times the UMA; and 
economic  operators have annual assets or sales (separately or jointly) of more than 48  million times the value 
of the UMA.  
Note:  In 2022, the daily value of 1 UMA was fixed at MXN  96.22. Viewed at: 
https://www.in egi.org.mx/temas/uma . 
Source:  Article 86 of the LFCE; Guide to COFECE merger notifications; and information provided by the 
authorities.  
3.152.   Meanwhile, the LFTR states that IFT approval is required for the subscription or divestiture 
of shares or partnership stake in companies holding concessions for telecommunications and 
broadcasting services, provided that this concerns the control of more than 10 % of the equity capital 
(Article 112).  
3.153.   There are also restrictions on horizontal integration in the air transport sector, as an airport 
operator cannot acquire more than 5 % of the capital of a Mexican airline (and vice versa ) (Article  29 
of the Airports Law).  
3.154.   Between 2017 and 2021, COFECE initiated 37 investigations for alleged monopolistic 
practices, an d 21 practices were penalized (Table 3.22). In some cases, penalties were imposed for 
collusive practices in the health, energy (sale of gasoline to the public) and services (financial 
services, land transportation services for passengers and domestic air transportation services). 
Some relative monopolistic practices, such as tied sales in the energy sector, were also penalized. 
A total of 699 economic mergers were authorized, 11 of them with conditions in sectors such as 
agri-food and digital platforms. Seven economic mergers were refused in the manufacturing, retail 
and distribution sectors.184 
Table 3.22 COFECE competition data, 2017 -21 
 2017  2018  2019  2020  2021  Total  
Monopolistic practices  
Number of investigations initiated  13 7 6 5 6 37 
Following a complaint  7 3 4 1 2 17 
Ex officio  6 4 2 4 4 20 
Number of investigations concluded 9 11 8 6 5 39 
Number of practices penalized  6 2 6 3 4 21 
For cartels  6 2 4 3 4 19 
For relative monopolistic practices  0 0 2 0 0 2 
Mergers        
Notified  155 183 153 126 166 783 
Authorized  131 172 132 127 137 699 
Authorized with conditions  8 1 0 1 1 11 
Refused  1 3 2 0 1 7 
 
181 The requirements are: (a) that the concentration produces a reduction in the Dominan ce Index (ID) 
at the sector level; (b) that, as a result, the economic agent has less than 20 % share in the sector; 
(c) that the dominant economic agent in the sector does not participate in the merger and (d) that the 
concentration does not have the effec t of diminishing, damaging or impeding free competition.  
182 Ninth Transitory Article of the LFTR.  
183 Article 90 of the LFCE.  
184 Information provided by the authorities.  WT/TPR/S/429 • Mexico  
 
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   2017  2018  2019  2020  2021  Total  
Amparo (judicial review) 
injunctions       
 
Resolved by the judiciary  409 472 158 51 68 1158 
Dismissed  381 437 103 13 42 976 
Denied  22 27 24 17 13 103 
Granted  6 8 31 21 13 79 
Source:  Information provided by the authorities; and COFECE statistics. Viewed at: 
https://www.cofece.mx/planeacion -y-evaluacion . 
3.155.   Between 2017 and 2021, the IFT initiated eight investigations and impos ed penalties in 
one case. It also declared the existence of an economic operator with substantial power in the 
restricted audio and television services (pay television) market in various parts of the country.185 
The IFT authorized 21  economic mergers, two w ith conditions.  
3.3.4.2   Price controls  
3.156.   The Political Constitution of the United Mexican States and the LFCE allow maximum prices 
to be imposed on goods and services deemed "necessary" to the economy and popular consumption, 
in the event of shortages and price incr eases. However, according to the authorities, prices are 
regulated only if COFECE or the IFT determine that there is an absence of effective competition. 
Otherwise, even if there are shortages, prices will not be regulated. The SE is responsible for settin g 
the maximum price, on the basis of criteria to prevent shortages. The Federal Consumer Protection 
Agency (PROFECO) shall monitor implementation.186 In the context of this review, the authorities 
indicated that this type of price control has not been imple mented.  
3.157.   Also, if COFECE determines that there are barriers to access to "essential" inputs or that 
there is no effective competition in a reference market, it may recommend to the sector's regulatory 
body that regulatory measures, such as price or tariff c ontrols, be adopted. In 2020, COFECE 
recommended that tariffs for the transportation of chemicals and petrochemicals by rail be regulated 
(Section 4.4.2). In the telecommunications and broadcasting sector, if the IFT determines that there 
is a lack of comp etition in the essential inputs market, it adopts the relevant measures 
(Section  4.4.3).  
3.158.   As in 2017, the maximum selling price of medicines and inputs is regulated by the SE, except 
those produced by public pharmaceutical companies, which are regulated by the SHCP. When setting 
prices, the opinion of the Ministry of Health is taken into account.187 The maximum selling price is 
determined on the basis of the international reference price188 and distribution and marketing costs 
in Mexico.189 The price of patented medicines is regulated; however, the price of over -the-counter 
medicines (for which no prescription is required) is not controlled.  
3.159.   Electricity tariffs, except for generation, are reg ulated by the Energy Regulatory Commission 
(CRE). In the case of basic supply tariffs, these are fixed by distribution area, level of demand and 
voltage level.  
3.160.   Retail prices of petrol, diesel, and liquefied petroleum gas (LPG), as well as the wholesale 
("first-hand") price of natural gas were liberalized in 2017.190 However, on 29  July 2021, as an 
emergency and transitional measure, the maximum retail price of LPG was reintroduced.191 
 
185 Information provided by the authorities.  
186 Article 28 (third paragraph) of the Constitution and Article 9 of the LFCE.  
187 Article 31 of the General Law on Health (Official Journal of 7 February 1984, latest amendment 
on 1 June 2021).  
188 This is the average ex works price of the six States with the largest market share.  
189 Senate informa tion. Viewed at: https://infosen.senado.gob.mx/sgsp/gaceta/64/1/2019 -02-19-
1/assets/documentos/Inic_MORENA_Art.31_Ley_Gral_S alud.pdf . 
190 Information provided by the authorities.  
191 CRE. Viewed at: https://www.gob.mx/cre/documentos/precios -maximos -aplicables -de-gas-
lp?idiom=es . WT/TPR/S/429 • Mexico  
 
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  3.3.5   State trading, State -owned enterprises and privatization  
3.161.   In December  2016, Mexico notified the WTO that it had two State -trading enterprises 
according to the definition in Article XVII of the GATT  1994.192 These enterprises operate in the 
energy sector, namely Petróleos Mexicanos (PEMEX) and the Federal Electricity Commission (CFE), 
which are considered to be State -owned production enterprises (EPEs). PEMEX and the CFE seek to 
generate economic value and pr ofits for the State. In the case of PEMEX, it is also intended to 
maximize oil revenue to contribute to the country's economic development.  
3.162.   PEMEX participates in all the activities of the hydrocarbons sector's production chain.193 
In 2016, Mexico notified t he WTO that PEMEX had a monopoly on trade in crude oil and its 
derivatives, natural gas and other products. However, the same notification indicates that the State 
monopoly on trade was eliminated for LPG and for petrol and diesel.194 In 2022, PEMEX and 
some 40 private operators, with the permission of the Ministry of Energy (SENER), import and export 
hydrocarbons and petroleum products.195 However, PEMEX is still the most important operator. 
Until 2017, the price of some petroleum products was controlled ( Section 3.3.4.2).  
3.163.   The CFE remains the sole operator of the electricity transmission (and distribution) network 
and, as such, of imports and exports of electricity.196 Electricity transmission (and distribution) tariffs 
are regulated.  
3.164.   The State has full contro l (100 %) of PEMEX, and the CFE and its subsidiaries. PEMEX has 
three subsidiaries and the CFE, 10.197 In 2019, a new subsidiary,  CFE Telecomunicaciones e Internet 
para todos  (CFE Telecommunications and Internet for all) was created.198 
3.165.   In addition to these t wo companies, in 2021, the State controlled 64 companies operating 
in various sectors, mainly the services sector.199 
3.3.6   Government procurement  
3.166.   Government procurement is governed by federal or local laws (laws adopted by federal 
bodies) or by municipal regulat ions, as this procurement occurs at state, local and municipal level. 
Federal laws regulate procurement involving federal resources. If federal resources are transferred 
to federal entities (states and Mexico City), they are considered to be the federal en tities' own funds 
and procurement using these funds is governed by local laws.  
3.167.   The federal public procurement system is regulated by the Constitution (Article  134), the 
Law on Public Sector Procurement, Leases and Services (LAASSP), the Law on Public Works  and 
Related Services (LOPSRM) and their respective implementing regulations.200 General guidelines 
have also been issued in manuals, guidelines, guides, rules and decisions.201 Mexico is not party to 
the WTO  Agreement on Government Procurement and is not an  observer to the WTO Committee on 
Government Procurement.  
3.168.   All Federal Public Administration (APF) bodies must comply with the provisions of the LAASSP 
and the LOPSRM, with the exception of State -owned production enterprises, specifically PEMEX, the 
 
192 WTO do cument G/STR/N/16/MEX of  8 December  2016.  
193 Mexican Petroleum Law (Official Journal of 11  August  2014).  
194 WTO document G/STR/N/16/MEX of  8 December  2016.  
195 Ministry of Energy (SENER). Viewed at: https://www.gob.mx/sener/articulos/permisos -otorgados -
por-sener -para-la-importacion -y-exportacion -de-petrolifero s-e-hidrocarburos . 
196 The CFE's operations are regulated by the Law on the Federal Electricity Commission (Official Journal 
of 11 August  2014).  
197 List of semi -public bodies of the Federal Public Administration (Official Journal of 13  August  2021).  
198 For mor e information on the characteristics of an EPE, see WTO document  WT/TPR/S/352/Rev.1, 
of 23 June 2017.  
199 List of semi -public bodies of the Federal Public Administration (Official Journal of 13  August  2021); 
and information provided by the authorities.  
200 Law on Public Sector Procurement, Leases and Services (Official Journal of 4 January 2000, latest 
amendment on 20 May 2021) and Law on Public Works and Related Services (Official Journal of 28  May 2000, 
latest amendment on 20  May 2021).  
201 Further information available from the SHCP . Viewed at: 
https://compranetinfo.hacienda.gob.mx/uncp . WT/TPR/S/429 • Mexico  
 
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  CFE and  their subsidiaries, which have a special procurement regime. In addition, Autonomous 
constitutional bodies of the State, including the Bank of Mexico, the IFT and COFECE ( Section  2.1), 
usually have their own procurement rules. Procurement for public -private partnership projects are 
also regulated by the Law on Public -Private Partnerships.202 
3.169.   Up until 2018, the Ministry of Public Administration (SFP) was responsible for planning, 
shaping and implementing public procurement policy, as well as administering Co mpraNet, the 
online procurement platform. These functions were transferred to the Main Administrative Office of 
the SHCP in 2018.203 
3.170.   Each APF agency has continued to implement its own public procurement processes. 
However, since 2021, the Main Administrative Office of the SHCP has been responsible for 
determining which goods and services must be acquired through consolidated procurement. The 
consolidated procurement process is carried out by the Main Administrative Office or the agencies.204 
The objective of consolidated procurement is to rationalize  public spending by obtaining better 
prices, and to rebuild trust in the State procurement system, in line with the Comprehensive Strategy 
for the New National Procurement System that Mexico began to r oll out in 2019.205 In addition to 
consolidated procurement, Mexico also promotes the use of framework contracts in an effort to 
reduce expenditure. In 2021, there were 20 framework contracts in force, signed by the Main 
Administrative Office. This type of contract has increasingly been used during the review period 
(Table 3.23)  
Table 3.23 Data on government procurement through framework contracts, 2017 -21  
 2017  2018  2019  2020  2021  
Amount (in MXN)  6,711.8  8,976.4  4,835.1  64,113.5  12,431.2  
Number of contracts awarded  265 323 4,290  3,666  9,314  
Source:  Information provided by the authorities.  
3.171.   In the health sector, Mexico signed an agreement with the United Nations Office for 
Project  Services (UNOPS) for the procurement of medicines and medical equipment between 2020 
and 2024.206 In response to the pandemic, in 2020, the federal govern ment declared a health state 
of emergency and also authorized six bodies207 to procure medicines, medical supplie s/equipment 
and hygiene products.208 
3.172.   The objective of government procurement is to obtain the best price, quality, financing and 
opportunity to make the best possible purchase. The processes must also be transparent and fair.209 
Any contracts awarded imprope rly or which defraud the treasury are unlawful.210 In addition, 
collusion in public procurement is an absolute monopolistic practice and, therefore, is also illegal 
per se and a punishable offence.211 However, it currently does not constitute grounds for tem porarily 
 
202 Articles 1 of the LAASSP and the LOPSRM, respectively.  
203 Article 31 of the Law on the Organization of the Federal Public Administration (LOAPF), amended by 
Decree published in the Official Journal of 30 November 2018; and information provided by the authorities.  
204 Guidelines for coordinating and implementing consolidated procurement processes to acquire or hir e 
movable property or provide services of any type (Official Journal of 13  March  2021).  
205 See also the 2019 -24 National Programme to Combat Corruption and Lawlessness, and Improve 
Governance (Official Journal of 30 August 2019).  
206 Ministry of Health. Viewe d at: https://www.gob.mx/salud/prensa/mexico -logra-ahorros -en-compra -
de-medicamentos -por-mas-de-11-mmdp ; and the Centre for Economic and Budge tary Research A.C. Viewed 
at: https://ciep.mx/eficiencia -del-gasto -en-salud -compra -consolidada -de-medicamentos . 
207 Ministry of Defence (SEDENA); Ministry of th e Navy (SEMAR); Ministry of Health (SSA); Institute of 
Health for Well -being (INSABI); Social Security and Social Services Institute for State Workers (ISSSTE); and 
Mexican Social Security Institute (IMSS).  
208 Decree establishing extraordinary health measur es in affected regions throughout the national 
territory in response to the high -priority severe illness caused by the SARS -CoV2 virus (COVID -19) 
(Official  Journal of 27  March  2020); and the Agreement establishing extraordinary measures that must be 
taken to procure and import the goods and services referred to in Article 2(II and III) of the Decree 
establishing extraordinary health measures in affected regions throughout the national territory in response to 
the high -priority severe illness caused by the S ARS-CoV2 virus (COVID -19) (Official Journal of 3  April 2020).  
209 Article 134 of the CPEUM and the Federal Law on Republican Austerity (Official Journal of 
19 November  2019).  
210 Article 9 of the Federal Law on Republican Austerity (Official Journal of 19  November 2019).  
211 Article 53 of the LFCE (Official Journal of 23 May 2014, latest amendment on 20  May 2021).  WT/TPR/S/429 • Mexico  
 
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  disqualifying operators from future government procurement processes.212 The Superior Audit Office 
of the Federation and the SHCP (the SFP up until 2018) are responsible for overseeing the contracts 
awarded.  
3.173.   Government procurement processes must en sure equal participation for all bidders.213 
As such, the terms and conditions and the requirements of the invitations to tender must not limit 
competition between the bidders.214 If a foreigner is from a country which has signed a trade 
agreement with Mexic o containing government procurement clauses, Mexico applies national 
treatment to them.215 If not, on a level playing field, preference is given to goods and services of 
Mexican origin.216 Foreigners' participation in the procurement of works and related ser vices is also 
governed by the principle of reciprocity.217 
3.174.   As in 2017, Mexico uses three procurement methods: public tendering, closed tendering 
(invitation to at least three people) and direct awards. As a general rule, public tendering must be 
used.218 Closed tendering and direct awards are only used when public tendering is not possible, for 
example, when there is only one bidder or the tender process is in response to an emergency 
situation (" force majeure "), whether economic, social or health emergen cies, such as a pandemic.219 
3.175.   There are no thresholds for determining when the different tendering methods should be 
used. However, the value of the contracts awarded through closed tendering or direct awards is 
capped at an amount based on the procurement b udget for each agency. These caps are published 
in the Federal Expenditure Budget and cannot be exceeded.220 In addition, the total value of 
procurement through closed tendering or direct awards may not account for more than 30 % of the 
annual procurement bu dget.221 Emergency procurements of medical equipment and devices through 
direct awards in connection with the pandemic were not subject to these restrictions.222 
3.176.   There are three forms of public tendering: national, international under a trade agreement 
and o pen international (Table 3.24). Between 2017 and 2017, the national modality was the most 
commonly used public tender process. From 2017 to 2019, between 3 % and 5 % of the total value 
of tenders was awarded through open international public tenders; however , this figure stood at 
22% in 2020 and at 26 % in 2021.223 All types of companies may participate in public tendering. 
However, only MSMEs may participate in some public tendering processes, provided that the 
procurement value is below the threshold set out in trade agreements.224 
 
212 Article 60 of the LAASSP; Article 78 of the LOPSRM; and the OECD (2020), OECD Peer Reviews of 
Competition Law and Policy: Mexico.  
213 Articles 26 of the LAASSP and 27 of the LOPSRM.  
214 Articles 29 of the LAASSP and 31 of the LOPSRM.  
215 WTO document WT/TPR/M/352/Add.1 of 7 June 2017.  
216 Articles 14 of the LAASSP and 29 of the LOPSRM.  
217 Article 30 of the LOPSRM.  
218 Article 134 of the CPEUM.  
219 Articles 40 -44 of the LAASSP and 41 -44 of the LOPSRM.  
220 Annex 9 to the Expenditure Budget for the fiscal year 2022 (Official Journal of 29  November  2021).  
221 Articles 42 of the LAASSP and 43 of the LOPSRM.  
222 Decree establishing extraordinary health measures in affected re gions throughout the national 
territory in response to the high -priority severe illness caused by the SARS -CoV2 virus (COVID -19) 
(Official  Journal of 27  March  2020); and the Agreement establishing extraordinary measures that must be 
taken to procure and im port the goods and services referred to in Article 2(II and III) of the Decree 
establishing extraordinary health measures in affected regions throughout the national territory in response to 
the high -priority severe illness caused by the SARS -CoV2 virus (C OVID -19) (Official Journal of 3  April 2020).  
223 Information provided by the authorities.  
224 Article 35 of the Regulations implementing the LAASSP.  WT/TPR/S/429 • Mexico  
 
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  Table 3.24 Government procurement processes  
Process  Description  
National  An invitation to tender is issued when the contract value is below the threshold set out 
in trade agreements or when the agreement provides the option that the contract may 
be reserved to Mexican suppliers (even when the contract value is equal to or above 
the threshold).  
Only Mexican natural and legal persons may participate in the bidding process.  
The goods, services and works must be of national origin. The goods must also be of 
at least 65% local content and, for works contracts, at least 30% of the workforce must 
be locals. Contracts may also require the use of national materials, mach inery and 
teams.  
International under 
a trade agreement  Each trade agreement stipulates the procurement threshold.  
Mexican nationals or nationals of the State or States Parties may participate in the 
bidding process.  
The goods, services and works are of national origin or comply with the rules of origin.  
Open international  An invitation to tender is issued when (i) national open tendering processes have 
received no responses; or (ii) the procurement is financed with loans from an 
international bod y. 
Mexican nationals or foreigners of any nationality may participate in the bidding 
process.  
The goods, services and works may be of any origin (national or foreign).  
Source:  Secretariat of the WTO and information provided by the authorities.  
3.177.   In public tendering, contracts for goods and services are awarded based on one of the three 
following criteria: the bid with the best cost -benefit ratio; the bid with the best score; or the 
lowest -priced bid. Under the cost -benefit and score c riteria, the lowest price is not necessarily a 
deciding factor.225 The lowest -price criterion is used if the other two cannot be applied.226 On a level 
playing field, preference is given to MSMEs.227 Works contracts are generally awarded to the most 
"solvent"  bid, i.e. the terms offered by the supplier ensure that the contract will be fulfilled.228 On a 
level playing field, in open international tendering processes for the purchase of goods, preference 
is given to goods of national origin. A margin of preferenc e of 15 % is still given to goods of national 
origin.229 
3.178.   For closed tendering, at least three preselected suppliers are invited to submit bids. The 
same criteria for public tendering are used for awarding the contract. For direct awards, the contract 
is awar ded to a preselected supplier. The authorities have indicated that, in both cases, suppliers 
are preselected through a market study which considers aspects such as candidates' technical and 
financial resources.  
3.179.   The tendering processes can be conducted in p erson, electronically through the CompraNet 
platform or through a hybrid approach. According to the authorities, in 2020, 70 % of tender 
processes were carried out on CompraNet, 18 % in person and 12 % followed a hybrid approach. In 
2019, the federal govern ment digital store (TDGF) was created on the CompraNet platform for 
procuring goods and services under framework contracts.230 
3.180.   In 2017, government procurement accounted for 2.4 % of Mexico's GDP and 10.1 % of 
government expenditure, while in 2020, these figures  stood at 1.9 % and 7.4 %, respectively. 
In 2021, government procurement increased to USD  76,644  million, accounting for 5.9 % of GDP 
and 23.1 % of government expenditure. This increase is due to the procurement of medicines, 
medical supplies/equipment and hyg iene products as result of the health emergency. Between 2017 
and 2021, the most used method for awarding contracts was direct awards (Chart  3.11). In value 
terms, most procurement is still through public tendering, although there has been an increase in 
the use of direct awards (Chart 3.11). In  2021, 85 % of government procurement was through direct 
 
225 Article 29, subparagraph XIII, and Article 36 of the LAASSP; and Article 51 of the Regulations 
implementing t he LAASSP. When scores are used, points are awarded for a range of technical, economic, 
administrative and financial criteria, in addition for the following: (i) employing disabled people; (ii) promoting 
gender equality; and (iii) MSMEs, innovation (Articl e 14 of the LAASSP).  
226 Article 36 of the LAASSP.  
227 Article 36 bis of the LAASSP.  
228 Article 38 of the LOPSRM.  
229 Article 14 of the LAASSP.  
230 Decision incorporating the federal govern ment digital store application into the CompraNet module 
and issuing the general provisions regulating the functioning thereof (Official Journal of 31  July 2019).  WT/TPR/S/429 • Mexico  
 
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  awards. This is due to the fact that, against the backdrop of the pandemic, the federal govern ment 
authorized the use of this method for procuring medicines, me dical supplies/equipment and hygiene 
products.  
Chart 3.11 Public procurement data, by procurement method, 2017 -21 
 
Source:  Information provided by the authorities.  
3.3.6.1   Procurement procedures for State -owned production enterprises231 
3.181.   The procurement of goods, services and works by State -owned production enterprises 
(EPEs), PEMEX and the CFE (and their subsidiaries), is excluded from the federal government 
procurement regime. PEMEX and the CFE have a special pro curement regime regulated by the 
Mexican Petroleum Law and the Law on the Federal Electricity Commission, respectively, and by 
general provisions and guidelines issued by their respective boards of directors. Procurement by 
EPEs is also regulated by Articl e 134 of the Constitution, which stipulates that, as a rule, public 
tendering should be the method used.  
3.182.   Even though PEMEX and the CFE have their own procurement regime, it is similar to the 
federal regime. For example: (i) both regimes use the same procur ement methods: public tendering 
(open competition), closed tendering (invitation to at least three persons) and direct awards; 
(ii) there are no national procurement thresholds under either of the regimes; (iii) as a rule, public 
tendering must be used; (i v) closed tendering and direct awards are only to be used in exceptional 
circumstances; and (v) in the case of the CFE, the criteria for awarding contracts are the best 
cost-benefit ratio, the best score and the lowest price. However, there are some differ ences between 
them. For example, PEMEX may use a preselection process in public tenders for highly complex 
contracts. In addition to using the procurement methods outlined above, PEMEX uses contractual 
 
231 WTO document WT/TPR/S/352/Rev.1 of 23  June 2017, and PEMEX. Viewed at: 
https://www.pemex.com/procura/procedimientos -de-contratacion/Paginas/default.aspx ; and the CFE. 
Viewed  at: https://www.cfe.mx/concursoscontratos/Pages/default.aspx . 
28,407 27,21723,36218,921 19,59722,45517,96716,040
10,609 12,694181,362
150,549
150,371
122,285141,875
050,000100,000150,000200,000250,000
2017 2018 2019 2020 2021Number of contracts awarded, by method
Public tendering Closed tendering Direct award16,319
11,1118,34410,047 9,9032,937
2,595
1,080964 1,2658,306
8,929
7,3319,74365,476
010,00020,00030,00040,00050,00060,00070,00080,000
2017 2018 2019 2020 2021Millions of USDContracted amount, by methodWT/TPR/S/429 • Mexico  
 
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  partnerships with strategic suppliers. These contracts  are regulated by civil and trade law (and not 
by administrative law).232 
3.183.   Contracts are signed within 10 working days from the date on which they are awarded, 
during which time the rejected participants may submit an "application for reconsideration" to a 
collegiate body composed of several of the company's executives. PEMEX and the CFE must provide 
information to the public about contracts being awarded and the progress of the contracts signed.  
3.184.   The procurement processes are conducted electronically only, th rough the PEMEX Electronic 
Procurement System (SISCEP) and the CFE Electronic Procurement System (SEC). According to the 
authorities, this process may be conducted face -to-face in exceptional circumstances.  
3.185.   In 2017 and 2021, the methods most used by PEMEX and the CFE were public tendering and 
direct awards. In 2021, 76 % of the amount contracted by PEMEX and 82.9 % of the amount 
contracted by the CFE were awarded through public tendering.233 
3.3.7   Intellectual property rights  
3.186.   Intellectual property rights (IPRs) in M exico are regulated by the Federal Law on Industrial 
Property Protection (LFPPI), the Federal Law on Copyright (LFDA) and the Federal Law on Plant 
Varieties (LFVV). The LFPPI is a new law from 2020, which repeals the 1991 Industrial Property Law 
(LPI).  
3.187.   Mexico is party to 18 treaties of the World Intellectual Property Organization (WIPO).234 The 
Hague Agreement (international registration of industrial designs) entered into force for Mexico in 
2020. Mexico is also party to the 1978 International Convention fo r the Protection of New Varieties 
of Plants.  
3.188.   The bodies responsible for IPRs are still the Mexican Industrial Property Institute (IMPI), the 
National Copyright Institute (INDAUTOR) and the National Seed Inspection and Certification Service 
(SNICS) of SADER . 
3.189.   Between 2017 and 2021, just like during the previous review period (2013 -17), almost all 
patents were filed by non -residents, while Mexican nationals chose to protect their inventions by 
registering utility models (Chart 3.12). According to the IMPI, the  low number of patents filed by 
Mexicans is due to a number of factors, most notably, the lack of investment in R&D.235 Between 
2017 and 2021, most patents were granted for consumer goods (42 %), industrial techniques (22 %) 
and chemistry and metallurgy (14 %).236 
 
232 Information  provided by the authorities.  
233 Information provided by the authorities.  
234 Three other treaties have been signed: the Beijing Treaty on Audiovisual Performances (2012), the 
Singapore Treaty on the Law of Trademarks (2006) and the Trademark Law Treaty (1994 ). 
235 2020-24 Institutional Programme of the Mexican Industrial Property Institute (Official Journal of 
12 November  2020).  
236 IMPI statistics. Viewed at: https://www.gob.mx/impi/documentos/instituto -mexicano -de-la-
propiedad -industrial -en-cifras -impi-en-cifras . WT/TPR/S/429 • Mexico  
 
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  Chart 3.12 Industrial property data, 2017 -21 
 
Source:  IMPI statistics. Viewed at: 
https://www.gob.mx/impi/documentos/instituto -mexicano -de-la-propiedad -industrial -en-cifras -impi-
en-cifras ; and information provided by the authorities.  
3.190.   According to the IMPI and the European Union Intellectual Property Office (EUIPO), between 
2010 and 2019 , a significant proportion of Mexico's GDP (47.8 %), employment (33.6 %) and foreign 
02,0004,0006,0008,00010,00012,00014,00016,00018,00020,000
2017 2018 2019 2020 2021Patent applications
Residents Non-residents02,0004,0006,0008,00010,00012,000
2017 2018 2019 2020 2021Patents granted
Residents Non-residents
050,000100,000150,000200,000250,000
2017 2018 2019 2020 2021Trademark registration applications 
Residents Non-residents020,00040,00060,00080,000100,000120,000140,000160,000
2017 2018 2019 2020 2021Registerd trademarks
Residents Non-residents0100200300400500600700800900
2017 2018 2019 2020 2021Utility model registration applications
Residents Non-residents050100150200250300350400
2017 2018 2019 2020 2021Registered utility models
Residents Non-residents
05001,0001,5002,0002,5003,0003,5004,0004,500
2017 2018 2019 2020 2021Industrial design registration applications
Residents Non-residents05001,0001,5002,0002,5003,0003,500
2017 2018 2019 2020 2021Registered industrial designs
Residents Non-residentsWT/TPR/S/429 • Mexico  
 
- 109 - 
 
  trade (74.7 % of the value of exports and 72.9 % of the value of imports) was generated through 
IPR-intensive economic activities.237 
3.3.7.1   Industrial property  
3.191.   In 2018, the LPI (promulgated in 1991) was revised in order to, among other things, 
introduce the geographical indications protection system238; reduce the period for submitting an 
objection to a patent application (from six to two months); extend the maximum protection per iod 
for industrial designs (from 15 to 25 years); and authorize the registration of non -traditional 
marks239 and certification marks.240 
3.192.   In 2020, the LFPPI was promulgated, which repealed the LPI. The LFPPI entered into force 
on 5 November  2020, with the exc eption of a number of provisions which entered into force a year 
later (November  2021).241 The LFPPI was adopted in order to comply with the commitments entered 
into under the new regional trade agreements and to strengthen industrial property protection.242 
In January  2022, the Executive Branch had not yet issued the regulations implementing the LFPPI. 
Therefore, the Regulations implementing the Law on Industrial Property (promulgated in 1994) 
remain in force, provided that they do not conflict with the LFPP I.243 The LFPPI introduces, among 
other things, new requirements, protection periods and exceptions (Table A3.5). 
3.3.7.2   Patents, utility models, industrial designs and layout designs of integrated 
circuits  
3.193.   Patent applications may be filed electronically with the IMPI, through the Electronic Services 
Portal (PASE) and, since 2021, through a mobile app. In 2019, the IMPI updated the PASE to allow 
digital signatures to be used, facilitate monitoring of the processing of applications and accept online 
payments.  
3.194.   Under the LFPPI, there have been no major changes to the patent -granting process, which 
comprises the following stages: filing of the application, examination of form, publication of the 
application, filing of objections, examination of substance, granting of th e patent and the publication 
thereof. The IMPI still has agreements with a number of foreign offices to fast -track the examination 
of substance of applications filed by non -residents.244 On average, the IMPI takes four and half years 
to grant a patent, if t he fast -track process is used, this period can be cut to two and half years.245 
3.195.   As Mexico notified the WTO in 2020, international best practices on patentability and 
exclusions have been incorporated into the LFPPI.246 As a result, the LFPPI stipulates that biological 
material which has been modified using a technical process may be patented (Article 49). The LFPPI 
states that cloning processes and processes for modifying genetic identity, as well as the industrial 
 
237 IMPI/EUIPO (2019), La Contribución Económica de la Propiedad Intelectual en México . Viewed at: 
https://www.gob.mx/impi/documentos/estudio -la-contribucion -economica -de-la-propiedad -intelectual -en-
mexico . 
238 Up until 2018, the LPI provided protection against the il legal use of geographic indications by 
prohibiting trademarks which include commonly used expressions to refer to geographical origin 
(WTO  document WT/TPR/S/352/Rev.1 of 23  June 2017).  
239 Olfactory, sound and holographic (touch) marks and corporate images.  
240 WTO document IP/N/1/MEX/16 - IP/N/1/MEX/I/13 of 29  March  2018.  
241 Federal Law on Industrial Property Protection (Official Journal of 1  July 2020). The LFPPI entered into 
force on 5  November  2020, with the exception of Articles 5 (VI, VII and VIII), 393, 394, 396 (I), 397, 398 
and 400 (Eighth Transitory Article of the LFPPI). The LFPPI was notified to the WTO in WTO document 
IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020.  
242 IMPI (2019), Informe de Labores , January -September. Viewed at: 
https://www.gob.mx/impi/documentos/transparencia -rendicion -de-cuentas -informes -de-labores -2019. 
243 Regulations implementing the Law on Industrial Propert y (Official Journal of 23  November  1994, 
latest amendment on 16  December  2016); and Fourth Transitory Article of the LFPPI.  
244 IMPI. Viewed at: https://www.gob.mx/impi/documentos/acuerdos -internacionales -firmados -por-
mexico -para-acelerar -el-examen -de-patentes . 
245 IMPI (2019), Informe de Labores , January -September. Viewed at: 
https://www.gob.mx/impi/documentos/transparencia -rendicion -de-cuentas -informes -de-labores -2019. 
246 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020; and the Ministry of the Economy 
and IMPI  PowerPoint presentation of 30  November  2020. Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/609867/30 _de_noviembre_de_2020_ -
_10_cosas_que_debes_saber_de_la_nueva_LFPPI.pdf . WT/TPR/S/429 • Mexico  
 
- 110 - 
 
  or commercial use of human embryos cannot be  patented (Article  49) (Table A3.5). Under the LFPPI, 
secondary pharmaceutical patents may also be granted (Article 45).  
3.196.   The LFPPI also incorporates the "Bolar clause" (Article 57), which Mexico adopted in 2003 
and was given effect by the Regulations for H ealth Inputs up until 2020.247 The "Bolar clause" is an 
exception to the right conferred by the patent. Under this clause, pharmaceutical companies are 
allowed to access patented substances or active ingredients in order to launch a study and conduct 
trials of generic medicines in order to apply for/obtain the sanitary registration needed to market 
the medicine immediately after the patent expires. Under the Regulations for Health Inputs, access 
to patented material was permitted only during the three years prior to the patent's expiry for 
chemical medicines and for eight years prior to the patent's expiry for biotech medicines. When the 
LFPPI entered into force, this restriction was removed, meaning that generic medicine studies can 
start at any time from th e date on which the patent is granted.248 The LFPPI also provides for 
collaborative work between the IMPI and the Federal Commission for Protection against Health Risks 
(COFEPRIS), responsible for granting the sanitary registration for medicines (Article  162).249 In this 
context, from late 2020, COFEPRIS has been authorized to view the list of patents related to 
medicines on the IMPI website in order to facilitate the sanitary registration of generic medicines.250 
Generic medicines account for 90 % of medicines  sold in Mexico and 12.1 % of Mexican 
pharmaceutical plants' production.251 
3.197.   The LFPPI keeps the national regime of exhaustion of patent rights in place (Article  57 of the 
LFPPI). Parallel imports are prohibited (Article 55). The same provisions still apply f or utility models 
(Articles  63-64). 
3.198.   Since 2017, no compulsory licences have been granted to exploit patents in Mexico on the 
grounds of a national emergency or national security.  
3.199.   The patent protection period is 20 years from the patent filing date, with no  possibility of 
extending it. However, since 2020, if the IMPI takes more than five years to grant the patent (from 
the patent filing date), a request can be made to extend the patent's validity by up to five years. 
The extension is only granted if the IMP I accepts responsibility for the delay.252 
3.200.   Industrial designs incorporated into industrial products can be protected, and, since 2020, 
so can industrial designs incorporated into handicrafts.253 The maximum protection period for utility 
models was also exten ded from 10 to 15 years in 2020 (Table A3.5).254 
3.201.   Up until 2020, exploitation licences had to be registered with the IMPI. In 2020, this 
requirement was removed and, since then, registering the licence has been optional (Article  138 of 
the LFPPI), although it is recommended. Even if the licence contract is not registered, it protects the 
licensee in the event of any potential disputes with third parties.  
3.202.   Just like the LPI, the LFPPI protects industrial secrets. In 2020, the concept of 
misappropriati on and its exceptions were incorporated (Articles 163 -164).255 The LFPPI retains the 
obligation to take every precaution to keep information confidential in order to be able to enjoy 
protection.  
 
247 WIPO document Viewed at: 
https://www.wipo.int/export/sites/www/scp/en/meetings/session_23/comments_received/mexico.pdf . 
248 Federal Commission for Protection against Health Ri sks. Viewed at: 
https://www.gob.mx/cofepris/es/articulos/reglas -para-la-produccion -de-medicamentos -genericos -en-beneficio -
de-la-poblacion?idiom=es . 
249 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020.  
250 IMPI. Viewed at: https://patmedsp.impi.gob.mx/Paginas/Inicio.aspx . 
251 Senate of the Rep ublic (2020), Temas Estratégicos No. 86  Viewed at: 
http://bibliodigitalibd.senado.gob.mx/handle/123456789/5095 . 
252 Article 126 of the LFPPI.  
253 Article 66 of the LFPPI.  
254 Article 62 of the LFPPI.  
255 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30 July 2020; and the Ministry of the Economy 
and IMPI PowerPoint presentation of 18  November  2020. 
https://www.gob.mx/cms/uploads/attachment/file/592651/18_de_noviembre_de_2020_ -
_La_nueva_LFPPI.pdf . WT/TPR/S/429 • Mexico  
 
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  3.3.7.3   Marks  
3.203.   Just as with patents, applications to register a mark are filed through the PASE (modernized 
in 2019) and, since 2021, through the IMPI mobile app. The registration procedure still consists of 
filing the application, its publication, the filing objections, the examination of form and substance, 
granting the mark registration and its publication. However, since 2020, the IMPI has carried out 
the examinations of form and substance at the same time; therefore, the IMPI issues just one opinion 
to inform the applicant of any form or substantive impediment.256 In addition, since 2020, the 
applicant has had two months (rather than one previously) to respond to any objections; this period 
can be extended for another two months (Article 225). According to the authorities, the IMPI takes 
around six months to finish p rocessing a mark registration.  
3.204.   The LFPPI protects traditional and non -traditional marks, collective marks, certification 
marks, well -known and famous marks, trade notices and trade names. In order to register a 
well-known and famous mark in Mexico, applica nts still require a brand awareness declaration issued 
by the IMPI, which is valid for five years. However, the LFPPI removes all requirements to 
demonstrate that a mark is famous or well -known, making it easier to obtain the declaration 
(Article  192 of th e LFPPI).257 As a result, since 2020, there have been no requirements to provide 
proof of the following: investment during the last three years in advertising or promoting the mark 
in Mexico or abroad; the mark's actual geographical area of influence; the s ales volume of products 
or income from providing services; and the actual or estimated economic value of the mark in the 
equity of the company that owns it.  
3.205.   Applications to register a mark are still filed by product or service class under which the 
mark is  to be registered.258 The IMPI still does not accept a single application can be made for a 
product or service belonging to various classes. Since 2020, marks may be registered that are 
identical to other marks that have been registered or are in the proces s of being registered, for the 
same product or service, provided that consent is obtained from the owner of the mark that has 
been or is being registered.259 
3.206.   Up until 2020, licences to use registered marks had to be registered with the IMPI. In 2020, 
this r equirement was removed and registering the licence has become optional (Article  240 of the 
LFPPI) but recommended. Even if the contract is not registered, it protects the licensee in the event 
of any potential disputes with third parties.  
3.207.   The protection pe riod for trademarks is still 10 years, which can be renewed indefinitely. 
Since 2020, the protection period has been calculated from the date on which the registration was 
granted (Table A3.5); previously, the period began on the date on which the applicat ion was filed. 
Therefore, the new regime provides the trademark owner with effective protection for 10  years.260 
3.208.   In order to maintain the trademark registration, owners must show that they market 
products or services which bear the registered trademark, whi ch has been registered for more than 
three years. The registration lapses if the trademark is not used for three consecutive years261; and 
the owner must also prove that they are using it through a declaration of use. When renewing the 
registration, they mu st also prove that the trademark has been used. Since 2020, if, during the 
renewal process, the owner fails to file the declaration of use, the IMPI must notify them and give 
them two months to complete this step.262 However, since 2020, it has also been po ssible to partially 
cancel the registration of a trademark, meaning that the owner loses their right only over products 
and services where the trademark has not been used (Articles 235 and 260 of the LFPPI).  
3.3.7.4   Designations of origin and geographical indicati ons 
3.209.   Applications for declarations of protection for a designation of origin (DO) or a geographical 
indication (GI) may be made ex officio  or by a representative. Since 2020, deputies and senators of 
 
256 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020.  
257 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020.  
258 Article 176 of the LFPPI.  
259 Article 173 of the LFPPI.  
260 Article 178 of the LFPPI and WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020.  
261 Article 235 of the LFPPI.  
262 Articles 233 and 237 -238 of the LFPPI.  WT/TPR/S/429 • Mexico  
 
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  the Congress of the Union have been able to apply for a d eclaration of protection.263 The LFPPI 
specifies the various characteristics and requirements that the DOs and the GIs must fulfil in order 
to obtain this declaration (Articles 274 -275); previously, the same requirements were applied both 
to DOs and to GIs.  The declaration of protection is valid as long the original conditions for which it 
was issued prevail. There have been no changes in the LFPPI to the time period (two months) for 
submitting objections once the declaration of protection is published (Arti cle 282). The State is the 
owner of the DOs/GIs; the IMPI authorizes producers to use the DOs/GIs for a period of 10  years 
(renewable). Since 2020, DOs have been set out in NOMs, meaning that these NOMs must be 
followed when using a DO; the authorities hav e stated that, through the NOMs, they seek to increase 
protection and control the production of products with an appellation of origin. According to the 
LFPPI, an IMPI -accredited body must certify the extraction, production or processing; the container, 
packaging or wrapping; and the marketing of a product protected by a DO/GI (Article  289).  
3.210.   Foreign DOs and GIs are protected in Mexico by registering them with the IMPI. After the 
applicant files the application, there is a period of two months (which cannot be renewed) to submit 
an objection, and another two -month period for the owner to respond.264 
3.211.   As of 2022, Mexico has 18 products registered as DOs265 and 3 products registered as GIs. 
In 2019 -20, DO/GI products accounted for 0.5 % of the value of Mexico's non -oil exports.266 
According to the IMPI, Mexico has not yet harnessed the full potential of its DOs/GIs.267 All products 
with DOs are subject to tariffs, with rates varying between 9 % and 45 %, with the exception of Cacao 
Grijalva, which is exempt.268 
3.3.7.5   Copyright  and related rights  
3.212.   In 2020, the Federal Law on Copyright (LFDA) was revised in order to strengthen the 
protection for artistic and literary works, folk and craft art, primordial artworks, collective artworks 
and artworks derived from popular cultures or expressions of traditional cultures.269 In order to use 
them, since 2020, written consent has been required from the indigenous community granted 
exclusive use over them. In 2020, new provisions were also introduced into the LFDA in order to 
combat digital piracy ( Section 3.3.7.3).270 
3.213.   Literary and artistic works and their related rights are protected even when they are not 
registered. However, registering the work or the interpretation with the National Copyright Institute 
(INDAUTOR) is strongly r ecommended.271 Their creators have exclusive personal rights (moral 
rights) and economic rights (ownership rights) over their works and interpretations. Economic rights 
may be transferred through licences.272 Moral rights are protected in perpetuity, whereas  economic 
rights are protected for the author's lifetime plus 100 years. The protection given to performers and 
phonogram producers is 75 years, for videogram producers and broadcasting organizations, it is 
50 years.  
 
263 Article 273 of the LFPPI.  
264 Articles 3 15-327 of the LFPPI; and the IMPI. Viewed at: 
https://www.gob.mx/impi/articulos/tradicion -e-identidad -protegidas -las-denominaciones -de-origen -e-
indicaciones -geograficas . 
265 During the review period, the Raicillia (beverage) DO and the Pluma coffee DO were granted.  
266 Decree amending the tariff schedule in the Law on General Import and Export Taxes, Decree 
introducing the g eneral import tax for the border region and the northern border zone, and Decree establishing 
various sectoral promotion programmes (Official Journal of 18  November  2021).  
267 2020-24 Institutional Programme of the Mexican Industrial Property Institute (Offi cial Journal of 
12 November  2020).  
268 Decree amending the tariff schedule in the Law on General Import and Export Taxes, Decree 
introducing the general import tax for the border region and the northern border zone, and Decree establishing 
various sectoral promotion programmes (Official Journal  of 18 November  2021).  
269 Information provided by the authorities.  
270 Federal Law on Copyright (Official Journal of 24 December 1996, latest amendment on 1  July 2020).  
271 Article 162 of the LFDA.  
272 Licences are generally granted for five years. They may be granted for a longer period when 
publication of a work necessitates large -scale investment or in the case of musical works which require a 
longer period for dissemination (Article  33 of the LFDA and Article  17 of its implementing Regulations).  WT/TPR/S/429 • Mexico  
 
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  3.3.7.6   Plant varieties  
3.214.   There have been no chan ges to the 1996 Federal Law on Plant Varieties (LFVV) since the 
last Mexico review in 2017.273 
3.215.   Protection is granted to new, distinct, stable and uniform plant varieties through a breeder's 
title requested from the National Seed Inspection and Certification  Service  (SNICS). The breeder 
has the exclusive right to exploit perennial species for a maximum period of 18 years (from the date 
on which the title is issued); for all other species, the period is 15  years. A breeder may transfer 
their exclusive right th rough a licence. The SNICS may also issue an emergency licence if the plant 
variety is not being exploited or should there be a shortage in the national market (even though no 
such licences have been issued to date). Seeds and plant material (buds, cutting s, rhizomes, runners 
and tubers) imported for the purposes of reproducing or propagating a plant variety are protected 
in Mexico, provided that the plant variety is also protected in Mexico.274 Breeders must register plant 
varieties in the National Catalogu e of Plant Varieties (CNVV), managed by the SNICS, in order to be 
able to certify their quality.275 
3.3.7.7   Enforcing IPRs  
3.216.   Administrative, civil or criminal proceedings may be brought against individuals or 
companies unlawfully using IPRs. Administrative proceeding s are brought before the IMPI for both 
industrial property and copyright and related rights cases.276 Conciliation can be used as an 
alternative to administrative proceedings.  
3.217.   Administrative proceedings before the IMPI for unlawful use of an IPR are initiated with an 
"Administrative Declaration on an Administrative Trade Offence" application. In the application, the 
rights holder may ask the IMPI to order the imposition of provi sional measures. The IMPI may also 
impose these measures ex officio . 
3.218.   In 2020, a new type of provisional measure was introduced: suspending, blocking or 
removing materials disseminated digitally (Article 344 of the LFPPI). Another provisional measure 
that m ay be adopted is seizing goods which are being imported or exported or which are in transit 
when IPRs are infringed (Article 344). At the border, the Mexican National Customs Agency (ANAM) 
seizes the goods which allegedly violate the IPRs, provided that th e IMPI or the Office of the Attorney 
General of the Republic (FGR) orders it to do so; the ANAM does not take action ex officio . The goods 
are retained by the ANAM for a maximum of five days, during which time the rights holder must 
initiate administrative  or criminal proceedings. If not, the goods are released.277 However, if the 
ANAM has suspicions about the authenticity of a product protected by an IPR, it may notify the IMPI 
or the FGR. In order to make it easier to identify registered trademarks, the AN AM has a free 
trademark database.278 
3.219.   Between 2017 and 2020, the IMPI dealt with 2,936 trade -related administrative offences.279 
If the IMPI determines that an administrative offence was committed, a fine will be imposed. Since 
2020, fines equivalent to 250,0 00 UMAs may be imposed.280 Previously, the maximum amount was 
20,000 UMAs. Administrative decisions may be appealed before the Federal Administrative Justice 
Court. During the same period, the IMPI also carried out an average of 4,800 inspection visits per 
 
273 Federal La w on Plant Varieties (Official Journal of 25  October  1996, latest amendment on 
9 April 2012).  
274 WTO document WT/TPR/M/352/Add.1 of 7 June 2017.  
275 Federal Law on the Production, Certification and Trading of Seeds (Official Journal of 15  June 2007, 
latest am endment on 11  May 2018).  
276 Article 232 of the LFDA.  
277 Information provided by the authorities.  
278 IMPI (2019), Informe de Labores , January -September. Viewed at: 
https://www.gob.mx/impi/documentos/transparencia -rendicion -de-cuentas -informes -de-labores -2019. 
279 IMPI statistics. Viewed at: https://www.gob.mx/impi/documentos/instituto -mexicano -de-la-
propiedad -industrial -en-cifras -impi-en-cifras ; and information provided by the authorities.  
280 Article 388 of the LFPPI.  WT/TPR/S/429 • Mexico  
 
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  year, either ex officio  or at the request of a party, in order to withdraw counterfeit or pirated goods 
from the domestic market.281 
3.220.   The goods seized at the border and on the market can be gifted, but the vast majority of 
them are destroyed. The IMPI determ ines that the goods will be gifted or destroyed after consulting 
with the affected rights holders. As notified to the WTO by Mexico, in 2020, the process for destroying 
counterfeit goods has streamlined, leaving 15 working days for the parties to agree wha t should 
happen to the seized goods once the administrative -offence ruling is handed down by the IMPI; if 
they do not state their position, the IMPI orders the destruction of the goods.282 In 2019, counterfeit 
products, valued at MXN  16.5 million, were dest royed.  
3.221.   For judicial matters, Mexico has civil and criminal collegiate courts to deal with IPR -related 
cases.283 In 2020, the process for initiating civil action was amended, as up until 2020, the 
administrative process had to be exhausted before civil actio n could be initiated and compensation 
for damages could be claimed (Article 396 of the LFPPI).284 In addition, since 2020, after exhausting 
the administrative process, the IMPI may be requested to determine the damages incurred and the 
compensation amount, without having to go to the courts (Article  343).  
3.222.   The reforms introduced under the LFDA included new measures to combat digital piracy. 
Since 2020, copyright and related rights holders have been able to use technological protection 
measures (TPMs), i.e. "digital locks", to protect their works.285 The "notification and removal" 
mechanism was also introduced, which the holder can use to notify an Internet service provider 
(ISP) that content which infringes their rights has been uploaded by a user. Shoul d this occur, the 
ISP must remove the content quickly. If it fails to do so, it will be fined. The LFDA does not indicate 
how long the ISP has to remove the infringing content; however, the authorities have stated that 
the regulations implementing the LFDA  are being revised to determine the timeframe. There is a 
mechanism the alleged infringer may use to defend themselves, which requires the ISP to inform 
the rights holder and, if no action is taken by the holder within 15 days of being informed of this, 
the content is restored. The LFDA also sets out exceptions where ISPs are not responsible for the 
illegal content uploaded to their networks; for example, if they do everything possible to close the 
accounts of the infringing users.286 
3.223.   In addition, since 2020 , recording or making a copy of a film at a cinema is treated as an 
administrative offence (Article 231 of the LFDA). This action is also treated as a criminal offence as 
it was added to the Federal Criminal Code in 2020. Other actions which infringe intel lectual property 
rights in the digital environment, such as decoding or providing goods and/or services for decoding 
audio -visual signals, and getting around or providing tools for getting around "digital locks" for 
commercial gain were also added to the F ederal Criminal Code.  
3.224.   The "Piracy Mailbox", an electronic platform which can be used to report actions to the IMPI 
which may infringe copyright and related rights, still exists; in 2019, 97 complaints were handled.  
3.225.   According to a survey conducted by the IM PI in 2018, 85 % of respondents had bought 
pirated or counterfeit products at least once (mainly musical works, films and shoes), which were 
purchased from street stalls.287 Mexico does not impose sanctions/fines for the purchase of pirated 
or counterfeit pr oducts. However, the IMPI is constantly running campaigns to raise public awareness 
about the risk of purchasing counterfeit products (in addition to health risks).288 Despite these 
efforts, according to the IMPI, piracy and counterfeiting have a significan t impact on the Mexican 
 
281 IMPI statistics. Viewed at: https://www.gob.mx/impi/documentos/instituto -mexicano -de-la-
propiedad -industrial -en-cifras -impi-en-cifras . 
282 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020; an d information provided by the 
authorities.  
283 WIPO. Viewed at: https://www.wipo.int/wipolex/es/judgments/j -admin/mx.html . 
284 WTO document IP/N/1/MEX/21 - IP/N/1/MEX/I/15 of 30  July 2020.  
285 TPMs are computer programs that restrict what users can do with the content of copyrighted works.  
286 Articles 114 bis -114 octies of the Federal Law on Copyright.  
287 IMPI. Viewed at: https://www.gob.mx/impi/documentos/encuesta -nacional -sobre -habitos -de-
consumo -de-pirateria -2019 and https://www.gob.mx/se/articulos/inicio -el-impi-la-destruccion -de-pirateria -
mas-cuantiosa -de-la-historia?idiom=es . 
288 IMPI (2019), Informe de Labores , January -September.  WT/TPR/S/429 • Mexico  
 
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  economy, resulting in annual losses of more than MXN  43 billion. It is also estimated that 
approximately MXN  6 billion  is lost in tax revenue each year through the related VAT evasion.289 
 
 
 
 
289 IMPI (2019), Informe de Labores , January -September.  WT/TPR/S/429 • Mexico  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.  The contribution of the agricultural sector (including crop farming, livestock farming, forestry, 
fisheries and related services) to GDP rose slightly, from 3.3 % in 2016 to 3.8 % in 2021. However, 
growth in the sector slowed in 2018 and contracted  sharply in 2019, before starting to recover 
in 2020, despite the effects of the pandemic. The structure of the sector has not changed significantly 
during the review period. During that time, fisheries was the most volatile activity. In 2021 crop 
farming accounted for 65.3 % of agricultural GDP (62.3 % in 2016), livestock farming for 29.2 % 
(31.5 % in 2016) and other activities for 5.4 % (6.1% in 2016). Between 2016 and 2021 there was 
a slight fall in the percentage of the population employed in agriculture (Ta ble 4.1). Nonetheless, 
the sector continues to be important to the rural population (around 28  million people), as the 
majority of them are dependent on crop farming, hence the importance of agriculture in terms of 
social, economic and environmental equity  in Mexico.  
Table 4.1 Main indicators for the agricultural sector, 2016 -21 
 2016  2017  2018  2019  2020  2021  
Share of agriculture in GDP (% at current 
prices)a 3.3 3.4 3.4 3.4 3.8 3.8 
Real rate of growth in agriculture (%, at 
constant prices)a 3.5 3.4 2.6 -0.3 0.3 2.2 
Share of agricultural GDP (% at current prices)  
 Crop farming  62.3 64.1 63.6 63.6 64.3 65.3 
 Livestock farming  31.5 29.8 30.3 30.5 30.3 29.2 
 Forestry  3.1 3.1 2.9 2.9 2.7 2.6 
 Fisheries, hunting and trapping  2.8 2.6 2.8 2.6 2.4 2.5 
 Services related to agricultural and 
 forestry activities  0.3 0.4 0.4 0.3 0.3 0.3 
Real growth rate (%, at constant prices)  
 Crop farming  5.6 4.0 2.7 -0.5 -0.4 2.0 
Livestock farming  -0.4 2.1 2.2 2.3 3.1 2.2 
 Forestry  4.7 8.0 -0.2 0.3 -4.2 4.5 
 Fisheries, hunting and trapping  1.9 -4.9 8.3 -20.7 -9.8 10.3 
 Services related to agricultural and 
 forestry activities  0.7 35.2 5.8 -9.9 -10.2 -15.3 
Employment (% of the total working population)  
Crop farming, livestock farming, forestry, 
hunting and fisheries  13.1 12.8 12.5 12.2 12.6 12.3 
Agricultural sector (WTO definition)  
Exports  
Value (USD  millions)  27,892  31,075  32,275  35,377  37,483  42,678  
Share in total exports (%)  7.5 7.6 7.2 7.7 9.0 8.6 
Growth rate (%)  9.9 11.4 3.9 9.6 6.0 13.9 
Five most important products, according to HS chapter (% of total agriculture)  
 22. Beverages, spirits and vinegar  16.1 18.2 20.9 21.2 21.6 23.5 
07. Edible vegetables and certain roots 
and tubers  23.3 21.2 21.7 20.7 22.2 20.2 
08. Edible fruit and nuts; peel of citrus 
fruit or melons  19.9 20.8 20.1 21.1 18.9 19.4 
 02. Meat and edible meat offal  5.7 5.6 5.7 6.3 7.0 7.5 
19. Preparations of cereals, flour, starch 
or milk  6.1 6.3 6.1 5.9 6.0 6.3 
Imports  
Value (USD  millions)  23,471  24,508  24,976  26,602  25,419  35,938  
Share in total imports (%)  6.1 5.8 5.4 5.8 6.6 7.1 
Growth rate (%)  -2.7 4.4 1.9 6.5 -4.4 41.4 
Five most important products, according to HS chapter (% of total agriculture)  
10. Cereals  17.1 18.2 19.9 17.5 18.8 21.0 
12. Oil seeds and oleaginous fruits and 
miscellaneous; industrial or medicinal 
plants; straw and fodder  9.9 10.2 5.9 11.2 14.1 14.6 
02. Meat and edible meat offal  15.2 15.8 15.2 15.5 13.7 14.3 
04. Dairy produce; birds' eggs; natural 
honey; edible products of animal origin  6.8 7.3 7.0 7.7 7.2 6.1 
23. Residues and waste from the food 
industries; prepared animal fodder  6.8 6.1 6.2 6.0 4.5 6.0 WT/TPR/S/429 • Mexico  
 
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   2016  2017  2018  2019  2020  2021  
Agricultural trade balance (USD  millions)  4,421  6,567  7,299  8,775  12,065  6,740  
a Includes crop farming, livestock farming, forestry, fisheries and hunting.  
Source:  National Institute of Statistics and Geography (INEGI), Economic Information Bank (BIE), Economic 
indicators and national accounts; FAO  Stat, Agriculture (production, trade); and trade data supplied 
by the authorities.  
4.2.  Sugar cane continues to be the largest crop in terms of volume of production, but is not one 
of the top exports. Staple grains are important both in terms of volume and because  of their 
prominent place in the Mexican diet, and are regarded as essential products. The most important 
crop in terms of production is maize, which accounts for 75.4 % of all grains produced.1 
4.3.  In line with the trend that started in 2015, Mexico is a net exporter of agricultural products. 
The agricultural trade balance was positive throughout the review period, rising 
from USD 4,389  million in 2016 to USD  12,065  million in 2020, although in 2021 it fell 
to USD 6,740  million because of the international economic situation. Fruit and vegetables have 
traditionally been the top export products, while the importance of alcoholic beverages (beer) rose 
in 2021; of note among imported products are cereals (yellow maize), and seeds and meat 
(Table  4.1). The United States is the chief market for both exports and imports. The bulk of Mexico's 
imports of agricultural products enter the country under preferential regimes, especially for products 
from Canada and the United States, but also from Chile and Uruguay.  
4.4.  The National Development Plan (PND) 2019 -24 is the key planning document for setting 
national public policy priorities, and together with the Sectoral Programme for Agriculture and Rural 
Development 2020 -24, it lays down the development goals for the sector. The PND sets the goals 
of achieving food self -sufficiency and "saving the countryside"; accordingly, the first goal of the 
sectoral programme is to increase food production, especially of staple grains, meats and milk, by 
incorporating technolo gies that will raise productivity and competitiveness while supporting 
sustainability and inclusion. One aspect of this goal is to increase support for women farmers. 
Accordingly, in 2020 the Fertilizers for Wel l-being  Programme allocated 42 % of its budget  to women 
small -scale producers, who received around MXN  728 million by way of inputs to raise their 
productivity and standards of living.2 
4.5.  Another sectoral programme goal is to "increase sustainable production practices in the 
agricultural, aquaculture and fisheries sector in view of agro -climatic risks". In 2017, only 46.2 % of 
producers followed at least one sustainable practice. The Plan proposes that at least one sustainable 
practice should be adopted by 75 % of agricultural producers in or der for Mexico to meet its 
commitments under the Paris Agreement. The Plan also sets a goal of building the resilience of at 
least 50 % of the municipalities most vulnerable to climate change, establishing early -warning and 
risk-management systems at all le vels of government and achieving a net deforestation rate of 0 % 
by 2030. Despite these efforts, some studies point to the need to address particular challenges in 
relation to sustainable agricultural production. For example, according to the OECD, distribu ting free 
fertilizers under the Fertilizers for Well-being  programme without considering the needs of the soil 
can adversely affect water and air quality.3 Moreover, according to the Sectoral Programme for 
Agriculture and Rural Development 2020 -24, the wa ter stress experienced by Mexico is chiefly the 
result of intensive water usage (77 % of fresh water is used for crop irrigation).4 
4.6.  The sectoral programme identifies low productivity in the primary sector, especially among 
small and medium -sized producers,  as a challenge. The programme links low productivity to low 
investment, which is itself the consequence of  insufficient finance for the sector  and the lack of 
access to technology, inputs and agricultural advisory services, and the plant and animal health  
environment. For example, in the fisheries sector 54 % of all vessels are more than 30  years old and 
the capacity of the non -commercial fleet (98 % of the total fleet) is less than 10  tonnes. The reasons 
 
1 FAO Stat. Infor mation viewed at: https://www.fao.org/faostat/en/#data . 
2 SADER Press Release No.  099 of 7  March 2021. Viewed at: 
https://www.gob.mx/agricultura/prensa/fertilizantes -para-el-bienestar -destino -42-de-su-presupuesto -a-
productoras -de-pequena -escala . 
3 OECD (2021), Agricultural Policy Monitoring and Evaluation 2021. Information viewed at: 
https://www.oecd.org/publications/agricultural -policy -monitoring -and-evaluation -22217371.htm . 
4 Sectoral Programme for  Agriculture and Rural Development 2020 -24 (Official Journal 
of 25 June 2020).  WT/TPR/S/429 • Mexico  
 
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  for low productivity include l ow levels of capitaliza tion and technological innovation, which once 
again are consequences of the lack of adequate finance for the sector. Credit aimed at the 
agricultural and fisheries sector represents only 4 % of GDP, and 95 % of all credit granted is for 
agricultural activiti es. The activities with the least access to finance are aquaculture and fisheries.5 
4.7.  The programme also refers to the considerable differences in development across the country's 
five regions (north -west, north -east, central -west, central and south -south -east) and the various 
types of crop farming in each region. In the north -west and north -east regions, farming for business 
and commercial purposes predominates, involving export crops, larger -scale production units, 
greater access to finance, technologies a nd inputs, and consequently greater productivity and 
competitiveness. By contrast in the central and south -south -east regions, the technology is 
outdated, resources and inputs are scarce, production units comprise small producers (family or 
subsistence far ms), producers have a medium level of productivity and their production is geared 
towards the domestic market. In order to reduce inequalities, Mexico is trying to implement a 
differentiated policy that takes stock of each region's potential and addresses the needs of the 
various groups of producers in each region. The aim of the policy is to prioritize support and 
encouragement for producers who, because of poverty, need help in obtaining inputs, implementing 
processes or using collective assets, without n eglecting the agri -export sector.  
4.8.  Aside from the laws on health and safety ( Section  3.3.3), the laws governing the agricultural 
sector in Mexico have not undergone substantial change during the review period, although they 
have been subject to some amendme nts (Table  4.2). 
Table 4.2 Legislation in the agricultural sector, 2021  
Legislation  Publication in the DOF/ Latest 
amendment 
Land Law  26.02.1992/25.06.2018  
Law on Sustainable Rural Development  07.12.2001/03.06.2021  
Federal Law on the Production, Certification and Trading of 
Seeds  15.06.2007/ 11.05.2018  
Federal Law on New Plant Varieties  25.10.1996/09.04.2012  
Law on Organic Products  07.02.2006  
Federal Law on Animal Health  25.07.2007/16.02.2018  
Federal Law on Plant Health  05.01.1994/26.12.2017  
Law on Biosafety of Genetically Modified Organisms  18.03.2005/06.11.2020  
Rural Energy Law  30.12.2002/28.12.2012  
Law on the Manufacturing and Sale of Roasted Coffee  25.05.1972/10.12.2004  
Internal Regulations of SADER  03.05.2021a 
Rules of Operation of SADER programmes  Annual  
a Repeals the Internal Regulations of the Ministry of Agriculture, Livestock, Rural Development, 
Fisheries and Food (Official Journal of 25  April 2012).  
Source:  Information provided by the authorities.  
4.9.  At the institutional level, one important change since the previous review was the replacement 
in 2018 of the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA) 
with the Ministry of Agriculture and Rural Development (SADER), which took over SAGARPA's role 
(Table  4.3). 
Table 4.3 Main institutions responsible for the agricultural sector, 2021  
Institution  Main functions  
Ministry of Agriculture and 
Rural Development 
(SADER)  Formulate, direct and evaluate rural development policy in coordination with 
the competent agencies.  
Develop official animal and plant health regulations; monitor compliance; 
oversee and evaluate health campaigns; issue certifications in its area of 
competence.  
Formulate, direct and oversee technical assistance and training programmes.  
Propose and implement policy in respect of agricultural matters in 
international affairs and foreign trad e. 
 
5 Sectoral Programme for Agriculture and Rural Development 2020 -24 (Official Journal 
of 25 June 2020).  WT/TPR/S/429 • Mexico  
 
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  Institution  Main functions  
National Aquaculture and 
Fisheries Committee 
(CONAPESCA)  Propose and coordinate national policy for the sustainable development of 
fisheries and aquaculture resources, and for the development and promotion 
of fisheries and aquaculture activities.  
Imple ment the legal provisions concerning the use, development and 
conservation of fisheries resources and the development of aquaculture.  
Develop policies, and technical assistance and training programmes on 
health.  
National Institute of 
Fisheries (INAPESCA)  Conduct research related to fisheries and aquaculture.  
Provide technical advice to the sector.  
Develop and update the National Fishing Charter and the National 
Aquaculture Charter  
Food Security Agency 
(SEGALMEX)  Procure agri -food products to su pply the rural population.  
Promote the production, collection, provision, distribution, supply, processing 
and marketing of staple foods and of milk and dairy products.  
Sell, distribute and import fertilizers and improved seed.  
National Agri -Food Health, 
Safety and Quality Service 
(SENASA)  Implement and monitor compliance with the provisions on agri -food health, 
safety and quality in connection with plant, animal, fishery and aquaculture 
products and by -products.  
National Agricultural, Rural, 
Forestry and  Fisheries 
Development Bank (FND)  Grant credit to producers and rural financial intermediaries (IFR).  
Provide training and advice to producers and IFR so that they can make 
better use of the credit resources available to them.  
Encourage financial inclusion  among the rural population as a means of 
regional development.  
National Institute for 
Forestry, Agricultural and 
Livestock Research  
(INIFAP)  Promote R+D in the agricultural sector.  
National Seed Inspection 
and Certification Service 
(SNICS)  Encourage, promote, organize, coordinate and deal with activities concerning 
the production, grading, certification, conservation, analysis and marketing of 
seeds.  
Source:  Basic Law on the Public Administration , Internal Regulations of SADER, and the Decree establishing 
the Food Security Agency.  
4.1.1   Measures affecting imports and exports  
4.10.   The average applied tariff on agricultural products (WTO definition) fell from 14.3 % in 2016 
to 13.2 % in 2021. However, it is stil l higher than the 5.9 % applied tariff on non -agricultural products 
in 2021. On average, the highest duties by WTO category continue to be applied to sugar and 
confectionery (40.9 % in 2016 and 30 % in 2021) and to beverages and spirits and tobacco (23.1 % 
in 2016 and 24.4 % in 2021). In third place are dairy products (23.6 % in 2016 and 22.1 % in 2021) 
(Table  A3.1). Moreover, the bulk of tariff rates above 25 % (30%, 36%, 45%, 50%, 67% and 75 %) 
are used for agricultural products. In 2021, the products with a rate of 75 % were meat and offals, 
vegetables (1  line) and sugars (2  lines), to which a 100 % rate applied in 2016. The 67 % rate (as 
in 2016) applied to tobacco -related products, whereas the 45 % rate applied to food preparations, 
coffee and milk (45 % or 50 % in 2016) (Table  A3.1). The average tariff on fish and fish products fell 
from 15.5 % in 2016 to 13.8 % in 2021.  
4.11.   Mexico continues to use specific, compound and seasonal tariffs. Generally, the agricultural 
products subject to specific and compound tariffs in 2021 were the same as in 2016, except for 
cocoa preparations which, in a change from previously, are currently subject to a compound tariff. 
In 2021, 42 tariff lines related to agricultural products were subject to non -ad valorem  tariffs:  8 lines 
to specif ic tariffs6 and 34  lines to compound tariffs.7 Sorghum (HS  1007.90.01 -1007.90.02), soya  
beans (HS  1201.90.01 -1201.90.02) and safflower seeds (HS  1207.60.03 -1207.60.99) continue to 
be subject to seasonal tariffs of 15 % (sorghum and soya beans) and 10 % (safflower seeds) for a 
certain period of the year. Outside that period, imports of these products are tariff -exempt.  
 
6 The specific duties apply to: sugars, chemically pure sucrose and cocoa.  
7 Compound tariffs apply to: various kinds of milk, cream and ice cream; certain fruits (for example, 
strawberries, raspberries and other berries); molasses and articles of sugar confectionery, whether or not 
containing cocoa; extracts of malt; bisc uits and other food preparations; cocoa and cocoa preparations; 
waters, sweetened and flavoured; and ethyl alcohol.  WT/TPR/S/429 • Mexico  
 
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  4.12.   Mexico bound all its tariff lines in the Uruguay Round, with bound rates on agricultural 
products ranging from 0 to 254 %. Mexico's bound tari ff, like its applied tariff, contains specific and 
compound tariffs. The compound bound tariffs apply primarily to agricultural products.  
4.13.   Mexico continues to use three kinds of tariff quotas: those negotiated at the WTO (WTO 
quotas), unilateral quotas, and  preferential quotas. The Ministry of Economic Affairs (SE) has the 
power to establish "tariff -exempt" quotas where it deems them necessary.8 In 2020 and 2021, 
the SE placed tariff -free quotas on rice, beef (fresh, chilled or frozen), onions, fruit, vegetable fats 
and oils, maize, cane molasses, tomatoes and soya cake to ensure supply and price stability.  
4.14.   Within the WTO framework, Mexico applied tariff quotas to 56  HS 8-digit lines in 2021.9 As in 
2016, the only WTO quota used in 2021 was that for powdered milk (Table  A3.2). This is because in 
some cases the out -of-quota applied MFN tariff is lower than the in -quota applied tariff (e.g.  for 
sugar, meat and edible offal, hard and semi -hard che eses, some types of coffee, animal fats and 
some types of cereals and beans). In other cases, WTO quotas were not used because preferential 
or unilateral quotas provide better access.  
4.15.   In 2021, Mexico used unilateral quotas for certain agricultural products  (including fishery 
products) contained in 40 HS 8-digit tariff lines (Table  3.5). Some of the products (14  tariff lines) 
are also subject to WTO tariff quotas.10 However, the volumes imported under unilateral quotas were 
generally well below the quota amo unt and were used only for coffee, dairy preparations, chicken 
and turkey cuts and fish fillets (Table A3.3). As in 2016, the tariff under the unilateral quota in 2021 
was less than that under the WTO quota. Mexico has also negotiated preferential quotas f or 
agricultural products (including fisheries products) within the framework of its trade agreements.11 
In 2020, Mexico used preferential quotas very little, doing so only for: peaches from Argentina 
(47% fill rate); cuts of boneless meat (Japan (100 %)); cocoa beans (Peru (100 %)); cheese 
(Uruguay (85 %)); and the quotas negotiated under the CPTPP (cheese (58 %)) and preparations 
based on dairy products (99 %)). 
4.16.   The tariff quotas continue to be administered by the SE. In general, quotas are allocated by 
open te nder, although there are other allocation procedures (such as direct allocation and 
"first come, first served").  
4.1.2   Domestic support  
4.17.   Mexico provides support for the agricultural, livestock and fisheries sector under a series of 
programmes administered by SADE R. Since 2019 Mexico's agricultural policy has focused even more 
heavily on achieving food self -sufficiency and supporting small producers. To that end , various 
support programmes were merged, others were abolished and new ones created, the bulk of them 
delivered by SADER (Table  4.4). In 2020 nine programmes were abolished, including three that were 
merged with others.12 The number of changes made during the review period makes it difficult to 
compare the programmes implemented in 2017, the date of the previous review, with those currently 
in place. The programmes are complex as they include components and subcomponents that change 
 
8 Online information. Viewed at: 
http://www.diputados.gob.mx/LeyesBiblio/ref/ligiex/LIGIEx_tarifa01_24dic20.pdf  and Decision announcing the 
tariff for importing beef under the indicated tariff quo ta (Official Journal of 28  June 2021).  
9 These products include: sugar and products with a high sugar content, coffee, meat and edible offal, 
barley, animal fats, beans, powdered milk, maize, potatoes, waters, sweetened and flavoured, cheese and 
wheat.  
10 The products in question are: coffee, chicken meat, barley, beans, preparations based on dairy 
products, cheeses and chicken and turkey cuts.  
11 Under its trade agreements with: Argentina (5  tariff lines at 2017 HS  8-digit level); Colombia 
(24 lines); Costa Rica (7  lines); Cuba (15  lines); Guatemala (5  lines); Honduras (1  line); Israel (11  lines); 
Japan (29  lines); Peru (22  lines); Uruguay (10  lines) and the CPTPP (20  lines, except for Japan (19) and 
Australia (28)).  
12 These programmes included the: Agri -Food Productivity and Competitiveness Programme; the 
Agriculture Promotion Programme; the Livestock Farming Promotion Programme; the Fisheries and 
Aquaculture Productivity Promotion Programme; the Federative Entity Collaboration Programme; and the 
Agricultural  Insurance Programme (AGROASEMEX) (CONEVAL) (2020), Análisis de los programas sociales 
del PEF 2019 -2020. Information viewed at: 
https://www.coneval.org.mx/Evaluacion/IEPSM/Documents/ANALISIS_PEF_2019_2020.pdf#search=Programa
%20de%20Fomento%20a%20la%20Agricultura%2C%20Ganader%C3  per 
centADa%2C%20Pesca%20y% 20Acuicultura . WT/TPR/S/429 • Mexico  
 
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  from year to year, as provided for in their rules of operation.13 Moreover, on occasion a given product 
or activity receives  support under more than one programme, for example the Guaranteed Prices 
Programme for Basic Foods (PGPAB) and the Social and Sustainable Agricultural Markets Programme 
(AMYS), although the latter was apparently in place only in 2019.14 It is not clear ho w the 
programmes relate to each other in such cases, as under the rules, where there is duplication of 
products or components, only the benefits granted under one of the programmes may be utilized. 
Some of the programmes have been notified as domestic supp ort to the Committee on Agriculture 
and others to the Committee on Subsidies and Countervailing Measures of the WTO.15 
4.18.   The chief goals of the federal programmes to support and promote agricultural and 
fisheries/aquacultural activities include increasing pr oductivity and strengthening marketing 
channels in order to boost supply and reduce dependence on imports, especially with regard to 
strategic foods such as maize, beans, rice, bread wheat and milk. The programmes' coverage is 
national, although their appl ication can vary depending on the level of development of the region 
concerned. Generally, the programmes benefit producers in the crop -farming, cattle -farming, 
fisheries and aquacultural sectors who need to increase what they produce for their own consump tion 
and to generate surpluses. Preference is given to small -scale producers and, for some components 
or subcomponents, the population in low or very low socio -economic groups, municipalities that are 
highly or very highly marginalized, indigenous and/or A fro-descendant groups or communities, and 
women.16 Under almost all these programmes SADER delivers direct transfers or implements price 
guarantees and supply programmes. One of the programmes is geared to driving investment in 
agri-parks and agri -business  based on shared -risk schemes. To that end, an unendorsed, unsecured 
recoverable incentive of up to 80 % of the investment cost of the project is provided.17 
4.19.   In addition to the support programmes, aid is also granted to the agricultural sector through 
price subsidies for the electricity used by low -income agricultural producers.18 With regard to diesel 
(until 2020) and petrol, a fiscal stimulus is announced every month consisting in a cut in the rate 
of IEPS.19 
Table 4.4 Agricultural support programmes  
Body  Objectives  Type of aid  Beneficiaries  
Production for Wel l-being  Programme (previously Productive PROAGRO)  
SADER  Achieve food 
self-sufficiency  Direct support  Small and medium -sized 
producers of amaranth, rice, 
cocoa, safflower, chia, beans, 
maize, honey, sorghum, soya, 
bread wheat; small coffee and 
sugar -cane producers, and 
dairy farmers  
Guaranteed Prices Programme for Basic Foods (PGPAB)  
SADER  Support rural 
small farmers' 
production 
activities, raise 
their incomes and 
promote food 
security  Guaranteed prices for 
rice, beans, maize, 
bread wheat and cow's 
milk Agricultural producers of staple 
grains (rice, beans, maize and 
wheat) and milk  
 
13 The rules of operation are set out each year in a decision published in the Official Journal.  
14 Information provided by the authorities.  
15 WTO documents G/AG/N/MEX/55 of 25  October  2021 and G/SCM/N/372/MEX of 12  January 2022.  
16 Article  61 of the Decision announcing the rules of operation of the Agriculture, Livestock, Fisheries 
and Aquaculture Promotion Programme for the financial year 2022 (Official Journal of 31  December 2021).  
17 Decision announcing the rules of operation of the Agricultu re, Livestock, Fisheries and Aquaculture 
Promotion Programme (Shared Risk Subcomponent) for the financial year 2022 (Official Journal 
of 31 December 2021).  
18 Rural Energy Law (latest amendment on 28  December 2012).  
19 Decision announcing the fiscal stimuli for petrol and diesel in the fisheries and agricultural sectors for 
June 2020 (Official Journal of 29  May 2020).  WT/TPR/S/429 • Mexico  
 
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  Body  Objectives  Type of aid  Beneficiaries  
Fertilizers for Wel l-being  Programme  
SADER  Increase the 
supply of chemical 
and biological 
fertilizers in order 
to improve 
productivity  Free delivery 
of fertilizer 
(max.  600 kg/producer; 
quantity of fertilizer 
varies depending on the 
product).  
In 2019 the maximum 
was 450 kg/ha, 
max. 3 ha/producer  Small and medium -sized 
producers of maize, beans or 
rice in highly or very highly 
marginalized areas  
Agriculture, Livestock, Fisheries and Aquaculture Promotion Programmea 
SADER  Increase 
productivity in the 
agricultural sector 
in a sustainable 
fashion through 
innovation, 
technological 
development 
and/or technology 
transfer in order 
to contribute to 
food 
self-sufficiency 
and food security  There are various 
components and 
subcomponents 
providing different 
incentives; e.g. direct 
suppor t and repayable 
support  Small and medium -sized crop 
farmers who own up to 5 ha 
(individual incentives); 
organized crop farmers with up 
to 50 ha (incentives for 
collective projects); livestock 
farmers, including small 
farmers, with up to 35 head of 
cattle; investors in agri -parks 
and agri -business  
Livestock Sector Credit Programme [the programme did not run in 2020 or 2021]  
SADER  Increase the 
productivity of 
livestock farming  Delivery of dams and 
sires Small livestock farmers  
Livestock Farming Promotion and Livestock Product Quality Standardization Programme  
SADER  Spread innovation 
and technology; 
technology 
services and 
systems for 
identifying 
individual cattle  Direct support to take 
part in events/training 
(up to MXN 500,000)  Small and medium -sized 
livestock farmers  
Social Milk Supply Programme (LICONSA)  
SADER  Supply milk  Price subsidy  Low-income population  
Rural Supply Programme (DICONSA)  
SADER  Distribute basic 
food basket 
products 
(including foods 
such as rice, 
maize, maize 
flour, wheat flour, 
beans, coffee, 
sugar, milk, 
vegetable oil, 
basic biscuits) at 
subsidized prices 
to meet the 
demand of 
marginalized 
population groups 
living in poverty.  Provision through 
the DICONSA network 
of shops of basic food 
basket products at 
preferentia l prices, i.e. 
less than the price in 
privately owned local 
shops  Low-income population  
Social and Sustainable Agricultural Markets Programme (AMSYS)b 
SADER  Promote 
appropriate 
marketing of 
surplus crops  Direct payment as an 
incentive to achieve a 
minimum price or an 
"additional income" in 
order to achieve a 
"target income"  Small and medium -sized 
producers of eligible crops by 
area (e.g. raw cotton, Arabica 
coffee, safflower, sunflower, 
maize, sorghum, soya, bread 
wheat)  WT/TPR/S/429 • Mexico  
 
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  Body  Objectives  Type of aid  Beneficiaries  
Cereals and Oilseeds Market  Management Programmec 
SADER  Promote food 
security through 
market 
management and 
certainty  Implement instruments 
that allow for 
appropriate risk 
management; 
implement support 
schemes that facilitate 
crop marketing; foster 
greater flexibility in 
product ma rketing  Producers and purchasers of 
agricultural products  
Small Producers Support Programme (PAPP)  
First ran in 2016 with six independent components.d 
Merged with the Rural Productivity Programme in 2017.e 
Last ran in 2018.  
SAGARPA  Support for small 
crop farmers  Technology packages 
and technical 
assistance, coverage 
for losses  Agricultural producers in arid 
and semi -arid areas  
a Decision announcing the rules of operation of the Agriculture, Livestock, Fisheries and Aquaculture 
Promotion Programme for the financial year 2022 (Official Journal of 31  December  2021).  
b The programme was established in 2019 and ran in that year only. Information 
viewed  at: https://www.gob.mx/aserca/acciones -y-programas/programa -de-agromercados -sociales -
y-sustentables -2019-196615  and at: http://dof.gob.mx/nota_detalle.php?codigo=5554794&fecha=2
1/03/2019 . 
c Considered in the draft Federal Budget 2020. Not included in the final budget.  
d SAGARPA, Design Evaluation, Small Producers Support Programme. Information viewed at: 
https://www .agricultura.gob.mx/sites/default/files/sagarpa/document/2018/10/09/1453/09102018 -
s-266-programa -de-apoyos -pequenos -productores.pdf . 
e SAGARPA, Evaluation of Consistency and Outcomes, Small Producers Support Programme. 
Information viewed at:  
https://www.transparenciapresupuestaria.gob.mx/work/models/PTP/programas/sed/evaluaciones/2
017/08s266pccr17.zip . 
Source:  Rules of operation of the Programmes of the Ministry of Agriculture and Rural Development. 
Information viewed at: 
https:// www.gob.mx/agricultura/acciones -y-programas/programas -de-la-secretaria -de-agricultura -y
-desarrollo -rural-2022, and CONEVAL (2020), Análisis de los programas sociales del PEF  2019-2020. 
Information viewed at: 
https://www.coneval.org.mx/Evaluacion/IEPSM/Documents/ANALISIS_PEF_2019_2020.pdf#search
=Programa%20 de%20Fomento%20a%20la%20Agricultura%2C%20Ganader%C3  per 
centADa%2C%20Pesca%20y%20Acuicultura . 
4.1.2.1   Production for Wel l-being  Programme  
4.20.   Among SADER's domestic support programmes for agriculture, the most important in terms 
of disbursements is the Production for Well-being  Programme introduced in 2019. The budget 
allocated to the programme rose from MXN  9,000  million at its launch in 2019 to MXN  13,500  million 
in 2021. The programme was the result of the merger of two components that were in place until 
2018: Prod uctive PROAGRO, the most important programme in terms of disbursements until 2017, 
and the Comprehensive Maize and Bean Programme (PIMAF), which was part of the Small Producers 
Support Programme.20 As occurred previously under Productive PROAGRO, the Produ ction for 
Well-being  Programme makes direct payments per hectare – or for honey, per hive – to producers 
enrolled in the registers (Table  4.5). Unlike Productive PROAGRO, which supported small producers 
only, the Production for Well-being  Programme support s small and medium -sized producers up to a 
maximum of 20  hectares.  
 
20 CONEVAL (2020), Evaluación de Diseño con Trabajo de Campo del Programa Producción para el 
Bienestar 2019 -2020. Information viewed at: 
https://www.transparenciapresupuestaria.gob.mx/work/models/PTP/programas/sed/evaluaciones/2020/08u02
3pcdi19.rar . WT/TPR/S/429 • Mexico  
 
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  Table 4.5 Production for Well-being  Programme 2019 -21 
Year Product  Type of producer  Characteristics of the crop area 
or hive Aid per hectare 
or hive (MXN)  
Rain-fed Irrigated  
2019  Grains  
(including 
maize, beans, 
bread wheat, 
rice) Small producer 
(PROAGRO)  Up to 5 ha  Up to 0.2 ha  1,600  
Medium -sized 
producer 
(PROAGRO)  Above 5 ha 
and up 
to 20 ha Above 0.2 ha and up 
to 5 ha  1,000  
Small producer 
(PIMAF)  Up to 3 ha  n.a. 1,600  
2020  Grains  
(including 
maize, beans, 
bread wheat, 
rice, 
amaranth, 
chia and/or 
milpa system)  Small producer  Up to 5 ha  Up to 0.2 ha  1,600  
Medium -sized 
producer  Above 5 ha 
and up 
to 20 ha Above 0.2 ha and up 
to 5 ha  1,000  
Coffee  Up to 20 ha  Up to 5 ha  5,000  
Sugar cane  7,300  
2021  Grains  
(including 
maize, beans, 
milling wheat 
and/or rice)  Small producer  Up to 5 ha  n.a. 2,000  
Medium -sized 
producer  Above 5 ha 
and up 
to 20 ha Up to 5 ha  1,200  
Large producer  Above 20 ha  Above 5 ha  1,200  
Amaranth  Small producer  Up to 5 ha  n.a. 3,000  
Medium -sized 
producer  Above 5 ha 
and up 
to 20 ha Up to 5 ha  
Chia Small producer  Up to 5 ha  n.a. 3,000  
Medium -sized 
producer  Above 5 ha 
and up 
to 20 ha Up to 5 ha  
Sugar cane  Small producer  Up to 5 ha  n.a.  7,300  
Medium -sized 
producer  Above 5 ha 
and up 
to 20 ha Up to 5 ha  
Coffee or 
cocoa  Small producer  Up to 5 ha  n.a. 6,200  
Medium -sized 
producer  Above 5 ha 
and up 
to 20 ha Up to 5 ha  
Honey  Small producer  Up to 35 hives  6,200  
Medium -sized 
producer  More than 35 and up to 100 hives  
n.a. Not applicable.  
Source:  Rules of operation of the SADER Production for Well-being  Programme for the financial 
years  2019,  2020 and 2021. Information viewed at: 
https://www.dof.gob.mx/nota_detalle.php?codigo=5548620&fecha=23/01/2019 , 
http://dof.gob.mx/nota_detalle.php?codigo=5585830&fecha=07/02/2020  and 
http://www.dof.gob.mx/nota_detalle.php?codigo=5609033&fecha=28/12/2020  respectively.  
4.1.2.2   Guaranteed Prices Programme for Basic Foods  
4.21.   In 2019, the Food Security Agency (SEGALMEX), a SADER  agency, began implementing the 
Guaranteed Prices Programme for Basic Foods  (PGPAB). The budget allocated to the programme 
for 2019 was MXN  6,000  million, while for 2020 it was MXN  10,000  million and 
for 2021 MXN 10,961  million. The leading goals of PGPAB are to increase the incomes of small 
agricultural producers and reduce dependence on imports of staple grains and milk, thus promoting 
food self -sufficiency. The maize (small producers) and beans procured by SEGALMEX at guaranteed 
prices are intended prima rily for the supply network run by DICONSA, a State-owned social 
enterprise. SEGALMEX sells the remainder to other institutional programmes or on the open market 
at a price determined by it. The State-owned enterprise LICONSA is responsible for the collect ion 
and provision of milk at preferential prices.  WT/TPR/S/429 • Mexico  
 
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  4.22.   Together, DICONSA, SEGALMEX and LICONSA contribute to food security by retailing basic 
food basket products. Through the Rural Supply Programme, DICONSA purchases and collects basic 
basket products, includi ng the milk processed by LICONSA and other staple goods and hygiene 
products, and sells them through its network of community -based shops at below -market prices to 
marginalized population groups living in poverty.  
4.23.   The PGPAB pays guaranteed prices for rice,  beans, milk, maize and wheat, and provides 
incentives to purchase the risk management instrument (IAR), an insurance that SEGALMEX requires 
in order to grow maize and wheat. The guaranteed prices vary depending on the type of product 
and the size of the a rea under cultivation and are valid for a maximum volume per producer per 
crop season (Table  4.6). Additionally, for some types of wheat, the incentive is granted only if the 
crop is used by the domestic milling industry. In 2022, in addition to the guaran teed price, support 
of up to MXN  160 per tonne was offered to maize producers to move grain from the production unit 
to the collection centre up to a maximum of 20  tonnes per crop cycle; the support is delivered when 
the producer is paid for the grain.21 Support for productivity is available to large producers of rice 
and wheat for a given volume. SEGALMEX is able to procure the product at a price other than the 
guaranteed price in emergencies, when the bean harvest is affected by weather events and the 
harvest is not fit for human consumption but nonetheless retains a commercial value. If 
necessary,  SEGALMEX will supply grain for sowing to maize and bean producers, on a repayable 
basis.  
4.24.   According to the decision governing the PGPAB, the guaranteed prices fo r maize and beans 
address a market failure resulting from the short harvest period and the fact that there are only a 
few purchasers, who would be likely to determine the price. SEGALMEX acts as a market regulator 
by rectifying that failure and guaranteein g a set price for the maize and beans purchased from small 
producers. Moreover, SEGALMEX negotiates the prices and conditions of sale for small producers of 
maize or beans vis -à-vis other institutions and/or individuals in line with prevailing market 
condi tions. Where bread wheat and rice are concerned, the guaranteed prices seek to foster 
increased national production by offering producers attractive prices and thus reducing dependence 
on imports. Additionally, the purpose of the incentive offered to mediu m-sized producers of maize 
is to support them in the face of competition from imported maize and promote the use of IARs. 
Table 4.6 Guaranteed Prices Programme for Basic Foods, 2020 -22 
Product  Area  Price per tonne or per litre (MXN)/incentive  Maximum 
volume  
Maize (small 
producer)a Up to 5 ha of 
rain-fed land  2020 -21: 5,610  
2022: 6,278  20 tonnes  
Maize 
(medium -sized 
producer)  Up to 50 ha 
irrigated or 
rain-fed land  2020: 4,150  
2021 -22: incentive to purchase risk management 
instruments (IARs)  600 tonnes  
Beansa Up to 30 ha of 
rain-fed land or 
up to 5 ha of 
irrigated land  2020 -21: 14,500  
2022: 16,000  15 tonnes  
Bread wheat  Unlimited  2020 -21: 5,790  
2022: 6,400  100 tonnesb 
Bread wheat 
(small producer)  Up to 8 ha  2022: 6,900  50 tonnes  
Durum wheat  Unlimited  2020: incentive of 40% of the amount awarded for 
bread wheat (MXN 2,316).  
2021 : for durum wheat for the domestic milling 
industry: support to purchase an IAR.  
Incentives for the states of Baja California, Sonora 
and El Bajío only.  
2022 : for durum wheat for the domestic milling 
industry: support to purchase an IAR, support to 
cover the differences between the guaranteed price 
and the reference price.  
Incentives for Baja California, Sonora an d El Bajío 
only. 2020:  
50 tonnes  
2021 -22: 
150 tonnes  
 
21 Decision announcing the rules of operation of the Guaranteed Prices Programme for Basic Foods, 
managed by the Food Security Agency (SEGALMEX) of the Ministry of Agriculture and Rural Development, for 
the financial year 2022 (Official Journal of  31 December 2021).  WT/TPR/S/429 • Mexico  
 
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  Product  Area  Price per tonne or per litre (MXN)/incentive  Maximum 
volume  
Milka Small producer 
(1-35 cows)  
Medium -sized 
producer  
(36-100 cows)  2020 -21: 8.20 
2022: 9.20 25 litres per 
cow per day  
Rice Unlimited  2020 -21: 6,120  
2022: 6,760  120 tonnesc 
Rice (small 
producer)  Up to 8 ha  2022: 7,300  80 tonnes  
a Collection by SEGALMEX or LICONSA.  
b Support for productivity awarded for an additional 200  tonnes after the first 100.  
c Support for productivity for an additional 180  tonnes  
Source:  CONEVAL (2020), Evaluación de Diseño con Trabajo de Campo del Programa Precios de Garantía a 
productos Alimentarios Básicos 2019 –2020. Information viewed at: 
https://www.transparenciapresupuestaria.gob.mx/work/models/PTP/programas/sed/evaluaciones/2
020/08u020pcdi19.rar ; Rules of operation of the Guaranteed Prices Programme for Basic Foods for 
the financial years 2020 and 2021, and Decision announcing the rules of operation of the 
Guaranteed Prices Programme for Basic Foods, managed by the Food Security Agency (SEGALMEX) 
of the Ministry of Agriculture and Rural Development, for the financial year 2022 (Official Journal 
of 31 December  2021).  
4.25.   Under the Domestic Milk Purchasing Programme (PALN) of 2004, LICONSA purchases milk, 
primarily from small and medium -sized producers, through its collection centres. LICONSA processes 
the milk and distributes it at a subsidized price to low -income urban and rural populations through 
the Social Milk Supply Programme. LICONSA buys fresh milk (hot or cold) and/or whole milk powder 
at a guaranteed price (of MXN  8.20 per litre in 2020 and 2021 and MXN  9.20 per litre in 2022), 
depending on the quality of the milk, working with the Guaranteed Prices Programme for Basic 
Foods.22 Despite the rise in the guaranteed price, the budget for the PALN has fallen since 2018.23 
4.26.   The aim of the support for the dairy sector is to try and promote and transform domestic mi lk 
production and to reduce and even eliminate imports of powdered milk by LICONSA by replacing 
them with domestically produced milk.24 To that end, SEGALMEX and LICONSA have set up 
programmes to improve the efficiency of LICONSA operations, promoting the drying of milk at 
private industrial facilities with which cooperation agreements are in place. Use of this strategy made 
it possible to increase purchases of milk from small and medium -sized producers from 600 
to 900 million litres annually.25 However, imports of powdered milk have not yet fallen and remained 
steady at around 3 % of the total value of agricultural imports between 2017 and 2020.  
4.27.   The milk purchased by LICONSA is sold to consumers at a preferential price determined 
by LICONSA under  the Social Milk Supply Programme. Households can buy up to four litres of 
fortified milk per week per person enrolled in the list; each household is entitled to a maximum 
of 24 litres per week. As part of this programme, some 900 million litres of fortifi ed milk per year 
have been distributed through 10,262  dairies, with an average saving per litre of milk of 74.7 %; on 
average, 5.9  million people have benefited under the programme.  
 
22 Decision announcing institutional programmes for 2020 -24 of semi -public bodies of the Ministry of 
Agriculture and Rural Development (Official Journal of 28  September 2020), and Handbook of procedures on 
purchase, receipt and payment f or domestic milk in LICONSA, S.A. de C.V. 2018. Information viewed at: 
http://www.liconsa.gob.mx/wp -content/uploads/2018/11/08 -MAN-PROC -ADQ-REC-PAG-LECHE -NAL-12-NOV-
18.pdf . 
23 The budget was: MXN  1,357.53 million (2017), MXN  1,537.19 million (2018), MXN  1,345.44 million 
(2019); and MXN  1,240.8 million (2020) (CONEVAL (undated), Reporte de Datos Generales ). Information 
viewed at: 
https://www.coneval.org.mx/Evaluacion/Documents/EVALUACIONES/FIMyE_19_20/Reporte_Datos_Generales_
FIMyE_19_20.zip . 
24 Decision announcing insti tutional programmes for 2020 -24 of semi -public bodies of the Ministry of 
Agriculture and Rural Development (Official Journal of 28  September 2020).  
25 Decision announcing institutional programmes for 2020 -24 of semi -public bodies of the Ministry of 
Agricult ure and Rural Development (Official Journal of 28  September 2020).  WT/TPR/S/429 • Mexico  
 
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  4.1.2.3   Agricultural finance and insurance  
4.28.   In 2019 Mexico restructured the developm ent bank to improve coverage, focus on the rural 
population and thus increase financial inclusion. To that end it established the New Comprehensive 
Rural Financing System comprising the National Development Bank, the Shared Risk Trust, the Rural 
Sector Cap italization and Investment Fund and AGROASEMEX, and set up a single window to provide 
the rural population with access to various programmes and financial services, and enable them to 
seek advice and training.26 
4.29.   AGROASEMEX, an insurance company specializin g in the agricultural sector, designs insurance 
schemes to expand market coverage and promotes the involvement of private agents in the 
agricultural insurance market.27 The Agricultural Insurance Programme, which was implemented 
by AGROASEMEX, was abolishe d in 2021.28 The programme offered a subsidy to reduce the cost of 
premiums for insurance against risks associated with climatic conditions.  
4.2  Energy29 
4.30.   The energy sector is regulated by the Constitution (Articles 25, 27 and 28) and various laws 
promulgated in 2014, namely: the Hydrocarbons Law30; the Hydrocarbons Revenue Law31; the Law 
on the Mexican Petroleum Fund for Stabilization and Development32; and the Law on the Electricity 
Industry33; and by the Law on Energy Transition of 2015.34 Since the previous review in 2017, the 
Hydrocarbons Law and the Law on the Electricity Industry have been amended to increase the 
market share of State-owned production enterprises, namely, Petróleos Mexicanos (PEMEX) and the 
Federal Electricity Commission (CFE) .35 The aim of energy policy since 2017 has been to reverse the 
reform initiated in 2013, through which the sector was liberalized in order to allow for competition. 
The government's objective is to "rescue" the sector in order for it to promote the country's 
socioeconomic development.36 It intends for State-owned production enterprises to become the 
dominant operators once again, and for them to become drivers of development and contribute to 
the objectives of energy self -sufficiency, access, supply and transition.37 In September  2021, a draft 
constitutional reform on electricity was tabled which, if approved, would further strengthen the role 
of the State and the CFE in the electricity sector, as it would limit the operations of private entities.38 
4.31.   In 2013, the energy market was fully liberalized, except for services related to the storage, 
distribution and supply of aviation fuel, which were liberalized in 2018 ( Section 4.4.3.1).39 
Consequently, the participation of private capital, both domestic and  foreign, is permitted in all 
energy sector activities, except for those which are reserved to the State under the Constitution, 
and which, despite this, are not considered monopolies. These activities are as follows:  
 
26 National Development Financing Programme 2020 -24 (Official Journal of 5  August 2020).  
27 Decision authorizing the establishment and organization of the insurance company AGROASEMEX 
(Offici al Journal of 7  June 1990).  
28 Information provided by the authorities.  
29 No comments were received from the competent authorities in this field.  
30 Hydrocarbons Law (Official Journal of 11 August 2014, as last amended on 20 May 2021) and 
Regulations impleme nting the Hydrocarbons Law (Official Journal of 31 October 2014).  
31 Hydrocarbons Revenue Law (Official Journal of 11 August 2014, as last amended on 13 January 2022) 
and Regulations implementing the Hydrocarbons Revenue Law (Official Journal of 31 October 2014, as last 
amended on 22 May 2017).  
32 Law on the Mexican Petroleum Fund for Stabilization and Development (Official Journal of 
11 August  2014, as last amended on 6 November 2020).  
33 Law on the Electricity Industry (Official Journal of 11 August 2014, as last amended on 9 March 2021) 
and Regulations implementing the Law on the Electricity Industry (Official Journal of 31 October 2014).  
34 Law on Energy Transition (Official Journal of 24 December 2015).  
35 ICEX (2020), Ficha Sector México: Hidrocarbu ros en México . Viewed at: 
https://ww w.icex.es/icex/es/navegacion -principal/todos -nuestros -servicios/informacion -de-mercados/estudios -
de-mercados -y-otros-documentos -de-comercio -exterior/guia -negocios -mexico -2020-doc2020860239.html . 
36 National Development  Plan 2019-24. 
37 Sectoral Programme  for Energy  2020-24. 
38 Ministry of Energy. Information viewed at: https://www.gob.mx/sener/prensa/el -nuevo -esquema -del-
sistema -electrico -nacional -garantizara -el-abastecimiento -continuo -de-electricidad -a-la-poblacion -
mexicana?idiom=es . 
39 General notice related to Transitional Article 9 of the Regulations implementing th e Airports Law 
(Official Journal of 21 June 2018).  WT/TPR/S/429 • Mexico  
 
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  a. in the hydrocarbons sector: "strategic " exploration and exploitation activities; and  
b. in the electricity sector: operation of nuclear power plants; transmission, distribution and 
control  of the National Electricity System (SEN).40 
4.32.   Foreigners are treated as nationals in activities in which they are allowed to participate. 
Foreign operators must be established in Mexico to be able to operate in the energy sector.  
4.33.   The activities reserved to the State are run by PEMEX, the CFE and their subsidiaries.41 The 
National Energy Control Centre (CENACE) con trols the dispatch of electricity in the SEN.  
4.34.   As in 2017, the main bodies in the sector are: the Ministry of Energy (SENER), the National 
Hydrocarbons Commission (CNH) and the Energy Regulatory Commission (CRE).  
4.2.1   Hydrocarbons  
4.35.   Mexico is one of the main hydro carbons producers in the region.42 In 2021, petroleum 
production was 1,664.7  thousand barrels per day (Kb/d) and natural gas production 
was 4,740.2  million cubic feet per day (MMcf/d).43 However, production declined during the review 
period, owing to the d ecrease in oil field reserves and the lack of investment in new fields. To remedy 
this situation, PEMEX announced the launch of new investment projects.44 
4.36.   In January -July 2021, oil revenue climbed to MXN  507,517.0  million, which was 60 % (in real 
terms) more than in the same period in 2020, and accounted for 14.9 % of total revenue in the public 
sector. Part of the oil revenue corresponds to the contributions for the Mexican Petroleum Fund for 
Stabilization and Development (FMPED) (Box 4.1 ). The strong decline in production in 2020 was 
partially offset by an increase in the price of petroleum on the international market. Oil production 
rebounded in 2021. In 2020, the fall in demand due to the pandemic also affected the sector.45 
In 2020 and  2021, in order to support PEMEX, the rate of the profit -sharing duty that the company 
passes on to the FMPED was reduced.46 
Box 4.1 Mexican Petroleum Fund for Stabilization and Development (FMPED)  
The revenue received by the federal govern ment from the exploration, exploitation and marketing of 
hydrocarbons is deposited in the Mexican Petroleum Fund for Stabilization and Development (FMPED), through 
which it is transferred to other funds (stabilizat ion or sectoral funds, or funds with specific purposes) and to 
the Federal Treasury. It also constitutes a savings reserve. The total contributions transferred to the different 
funds may not exceed 4.7% of GDP. The remaining amount is allocated to the savi ngs reserve. The reserve 
began to be established in 2018, as revenue had previously never reached 4.7% of GDP.  
Source:  Law on the Mexican Petroleum Fund for Stabilization and Development; and the FMPED. Viewed at: 
https://www.fmped.org.mx/administracion -reserva.html#valor_reserva . 
4.37.   Mexico is a major producer and net exporter of crude oil. However, it is a net importer of 
refined products, and the trade balance in hydroca rbons and their derivatives is in deficit (Chart  4.1). 
This is due to the low existing capacity in the country for refining heavy crude oil, which is the oil 
extracted by Mexico. Mexico also exports more than half of the unrefined crude oil extracted and 
imports refined products. The government aims to achieve self -sufficiency. To this end, efforts have 
 
40 Articles 27 and 28 of the Political Constitution of the United Mexican States (CPEUM).  
41 PEMEX has three subsidiaries: one for exploration and production; one for logistics; and one for 
industrial proces sing. The CFE has nine subsidiaries: six for generation; one for transmission; 
one for distribution; and one for marketing (list of semi -public bodies belonging to the federal govern ment 
(Official  Journal of 13 August 2021)).  
42 U.S. Energy Information Administration. Information viewed at: 
https://www.eia.gov/international/analysis/country/mex . 
43 Hydrocarbons Information System of the CNH. Viewed at: https://hidrocarburos.gob.mx ; Senate of 
the Republic (several years), Reporte Trimestral de los Ingresos Presupuestari os. Viewed at: 
http://bib liodigitalibd.senado.gob.mx/handle/123456789/3884 ; and information provided by the authorities.  
44 PEMEX press release of 17 June 2016. Viewed at: 
https://www. pemex.com/en/press_room/press_releases/Paginas/2019 -028-national.aspx . 
45 Senate of the Republic (several years), Reporte Trimestral de los Ingresos Presupuestarios . Viewed 
at: http://bibliodigitalibd.senado.gob.mx/handle/123456789/3884 . 
46 Decree granting tax benefits to the taxpayers indicated therein (Official Journal of 19 February 2021).  WT/TPR/S/429 • Mexico  
 
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  been made to rehabilitate existing refineries, and a new refinery is being built (Dos Bocas). PEMEX 
also acquired a refinery in Texas (United States).  
Chart  4.1 Hydrocarbons and petroleum products trade balance, 2017 -21 
 
Source:  WTO Secretariat, on the basis of information provided by the authorities.  
4.38.   The main market for hydrocarbons is almost exclusively the Un ited States (Table 4.7). The 
main petroleum products imported by Mexico are gasoline, diesel and liquefied petroleum gas (LPG), 
which 8 out of 10 households use as fuel.47 The majority of these imports benefit from preferential 
treatment (Table 4.7).  
Table  4.7 Trade in hydrocarbons, 2020 and 2021  
(%) 
Exports  2020  2021  
(June)  
2709. Petroleum oils and oils obtained from bituminous minerals, 
crude    
United States  58.8 58.2 
Middle East n.e.s.  27.2 27.6 
Other Europe n.e.s.  14.0 14.2 
Other  0.0 0.0 
2710. Petroleum oils and oils obtained from bituminous minerals, other 
than crude    
United States  60.0 68.5 
Panama  31.7 26.5 
Japan  2.6 0.0 
EU-27 1.4 0.3 
Republic of Korea  0.7 0.0 
Other  3.7 4.8 
2711. Petroleum gases and other gaseous hydrocarbons    
United States  68.1 99.7 
Morocco  30.6 0.0 
Belize  0.7 0.0 
Costa Rica  0.3 0.3 
Ecuador  0.1 0.0 
Other  0.1 0.0 
 
 
47 National Household Survey on Energy Consumption 2018 of the National Institute of Statistic s and 
Geography (INEGI). Viewed at: Encuesta Nacional sobre Consumo de Energéticos en Viviendas Particulares 
(ENCEVI) 2018 (inegi.org.mx ). 
05,00010,00015,00020,00025,00030,00035,00040,00045,000
05,00010,00015,00020,00025,00030,00035,00040,00045,000
2017 2018 2019 2020 2021
Imports (USD million)Exports (USD million)Exports (left-hand scale)
Crude oil (HS 2709)
Natural gas (HS 2711)
Petroleum products (HS 2710)
Imports (right-hand scale)
Crude oil (HS 2709)
Natural gas (HS 2711)
Petroleum products (HS 2710)WT/TPR/S/429 • Mexico  
 
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  (%) 
Imports  2020  2021  2020  2021 (June)  
Preference  No 
preference  Preference  No 
preference  
2710. Petroleum oils and oils 
obtained from bituminous minerals, 
other than crude  55.1 44.9 60.9 39.1 
United States  91.0 92.3 60.0 40.0 65.1 34.9 
EU-27 5.4 4.6 4.0 96.0 4.6 95.4 
China  2.2 0.8 0.0 100.0  0.0 100.0  
Republic of Korea  0.4 0.6 2.9 97.1 1.9 98.1 
Canada  0.4 0.7 79.6 20.4 84.0 16.0 
Other  0.5 1.0 1.3 98.7 1.3 98.7 
2711. Petroleum gases and other 
gaseous hydrocarbons  47.0 53.0 44.5 55.5 
United States  95.4 97.0 46.4 53.6 43.0 57.0 
Canada  2.7 2.8 99.2 0.8 100.0  0.0 
Trinidad and Tobago  1.1 .. 0.0 100.0  .. .. 
Nigeria  0.3 .. 0.0 100.0  .. .. 
Indonesia  0.2 0.2 0.0 100.0  0.0 100.0  
Other  0.4 0.0 0.0 100.0  0.0 100.0  
.. Not available.  
Source:  WTO Secretariat.  
4.39.   In order to import and export hydrocarbons and their derivatives, a prior permit issued by 
the Ministry of Energy (SENER) is required. In 2020, new rules for obtaining permits were issued.48 
These rules established new requirements for obtaining permits.49 They included new products 
(butane and propane) requiring a permit, added further grounds for revocation, and established the 
possibility to cancel a permit. However, the period of validity  of permits was maintained. The new 
rules eliminated the possibility of requesting a prior permit for a duration of 20 years, and instead 
introduced a maximum period of validity of five years. To obtain a five -year prior permit, operators 
must demonstrate that they have a contract for a period of five years. The prior permits granted 
for 20 years remain valid.  
4.40.   In 2017, the price controls on gasoline, diesel and LPG were eliminated. However, in 2021, 
as a transitional emergency measure, the price control on LPG was reintroduced ( Section 3.3.4.2). 
Mexico continues to grant a tax incentive for the consumption of gasoline and diesel, which consists 
of a reduced rate of IEPS (special tax on production and services).50 
4.41.   During the review period, the requirements fo r operating in the hydrocarbons sector did not 
change substantially (Table 4.8). The State has the power to award allocations, which grant PEMEX 
exclusive exploration and exploitation rights51, and contracts for exploration and exploitation. 
Contracts are awarded through tenders and may be of four types.52 PEMEX and private companies 
may participate in tenders individually or in partnerships.53 From 2013 to date (May  2022), Mexico 
has held three rounds of tenders. The third round was launched in 2017 and cancelled in 2018.54 
 
48 Decision establishing which goods imports and expor ts are regulated by SENER (published in the 
Official Journal of 26 December 2020), which repealed the Decision published in the Official Journal 
of 29 December 2014 (and the amendments thereto of 30 December 2015, 8 September 2017, 4 December 
2017 and 22 F ebruary 2019).  
49 For example, in order to export, operators are required to demonstrate that supply in the domestic 
market is not at risk. In order to import, operators must comply with the minimum storage requirements.  
50 The percentages of the incentive are published periodically in the decisions of the Ministry of Finance 
and Public Credit (SHCP). See, for example, the Decision announcing the percentages and amounts of the tax 
incentive, as well as the reduced IEPS rates applicable to the fuels  indicated, corresponding to the period 
specified (Official Journal of 11 February 2022).  
51 Article 4 of the Hydrocarbons Law.  
52 There are four types of contract: shared production contracts; licensing contracts; profit -sharing 
contracts; and service contr acts (Hydrocarbons Revenue Law).  
53 However, in some instances, the CNH may require PEMEX to participate in the tender. For example, 
if PEMEX were able to obtain technology transfer or if cross -border deposits were discovered (Articles 16 -17 of 
the Hydrocar bons Law).  
54 Rondas México . Viewed at: https://rondasmexico.gob.mx . WT/TPR/S/429 • Mexico  
 
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  Table 4.8 Requirements for operating in the hydrocarbons sector, 2017 -22 
Activities  Institution  Requirement  Beneficiary  Initial duration  
(maximum duration)  
Exploration and 
exploitation  Ministry of 
Energy 
(SENER)  Allocation  PEMEX  Exploration: 25 years (50 years); 
exploitation: 20 years (45 years)  
National 
Hydrocarbons 
Commission 
(CNH)  Contract  PEMEX and 
private 
companies  25-35 years (40 -50 years)  
Farm-out 
agreement  .. 
Transport  Energy 
Regulatory 
Commission 
(CRE)  Permit  PEMEX and 
private 
companies  30 years (45 years)  
Storage  
Refining  SENER  
Processing of natural 
gas 
Distribution  CRE 
Marketing  
Retail  
.. Not available.  
Source:  Hydrocarbons Law, and WTO document WT/TPR/S/352/Rev.1 of 23  June 2017.  
4.42.   PEMEX also participates in farm -out agreements with private entities for the exploration and 
exploitation of oil and gas fields. These farm -out agreements are not awarded throug h tenders but 
are the result of a conversion ("migration") process for allocations. PEMEX uses this type of contract 
for projects in which it is necessary to diversify investments, share risks and have access to new 
technologies and best practices for sust ainability.55 The CNH selects private partners though 
tenders.56 In 2018, the tender process, through which partners were to be chosen to participate in 
several of these contracts, was suspended.  
4.43.   The contracts are subject to a local content requirement.57 The minimum percentage of local 
content depends on the activity (exploration or exploitation) and the type of field (onshore fields, 
shallow waters, deep waters and ultra -deep waters) (Transitional Articles 46 and 24 of the 
Hydrocarbons Law). The Ministry of Economic Affairs established a methodology for measuring 
percentages in 2014 (for onshore fields and shallow waters). This methodology was revised in 2015 
and in 2016 (for deep waters and ultra -deep waters). The methodology takes into account: the 
origin of the agreed goods and services; use of local labour; training of local staff; investment in 
local infrastructure; and technology transfer. The percentage of local content increases in accordance 
with the development of the project: 3 %-26% for explorati on and 25 %-38% for exploitation, except 
in deep water and ultra -deep water fields for which a lower percentage is established (4 %-10%), 
owing to the fact that the necessary technology may not be available in Mexico.58 The Ministry of 
Economic Affairs is responsible for verifying compliance with the local content requirement.59 
4.44.   For other activities (transport, storage, refining, processing of natural gas, distribution, 
marketing and retail) a permit issued by SENER or t he CRE is required (Table 4.8). Since 2021, 
permits have not been granted if operators are unable to store at least half the equivalent of 
five days of sale for petrol and diesel, and three days for jet fuel. Legislation allows for the revocation 
 
55 Pulso Energético  of 23 February 2021. Viewed at: https://pulsoenergetico.org/blog -post/beneficios -
economicos -de-los-contratos -petroleros . 
56 Article 13 of the Hydrocarbons Law.  
57 WTO document WT/TPR/S/352/Rev.1 of 23 June 2017.  
58 WTO document WT/TPR/S/352/Rev.1 of 23 June 2017.  
59 Decision est ablishing provisions for the verification of compliance with the local content obligations of 
contractors and allocation holders, with regard to exploration and extraction activities carried out in the 
national territory (Official Journal of 23 January 202 0). WT/TPR/S/429 • Mexico  
 
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  of existi ng permits if the requirements cannot be met.60 Permits, like allocations and exploration and 
exploitation contracts, are subject to a minimum local content requirement.61 
4.45.   Furthermore, since 2021, in accordance with the Hydrocarbons Law, permits may be 
suspended in the case of an "imminent threat to national security, energy security or the national 
economy". However, these concepts are not defined in the Law. The duration of the suspension is 
decided by SENER or the CRE. During this period, SENER or the CR E takes over operations, using 
the infrastructure and staff employed by the operator, or may hire third parties. Permit holders may 
request that the suspension be lifted, provided that they demonstrate that the conditions that 
prompted the suspension were remedied. If, after the suspension period has ended, operators are 
not in a position to continue with their obligations, the permit is cancelled.62 
4.46.   Despite the fact that, for eight years, a certain level of competition has been allowed in the 
hydrocarbons market, PEMEX still maintains a dominant position. PEMEX is the main producer, 
importer and exporter of hydrocarbons and petroleum products, and also owns most of the 
infrastructure for transport and storage. PEMEX is also the owner of all the  refineries in the country, 
and controls retail.  
4.47.   In accordance with the Hydrocarbons Revenue Law, PEMEX has to pay, on a monthly basis, a 
hydrocarbons extraction duty calculated on the basis of the value of the product extracted, which 
varies according to the product concerned (Table 4.9), and must also pay, on an annual basis, the 
profit -sharing duty. The profit -sharing duty is calculated by applying a rate of 54 % to the difference 
between the value of the hydrocarbons extracted and the deductions permitte d under the Law, with 
the inclusion of that consumed by PEMEX, and losses due to spillage or burning.63 
Table 4.9 Hydrocarbons extraction duty, 2021  
Product  Rate/base value of product  Price  
Oil 7.5%  Price/bar rel <USD 48  
Rate equivalent to ((0.125 x oil price) 
+ 1.5%)  Price/barrel ≥USD 48  
Natural gas associated 
with oil production  Rate equivalent to (price/100)  n/a 
Natural gas not associated 
with oil production  0% Price/million BTU ≤USD 5  
 Rate equivalent to (price -USD 5) 
x 60.5))/price of natural gas)  Price/million BTU >USD 5 <USD 5.5  
 Rate equivalent to (price/100)  Price/million BTU ≥USD 5.5  
Condensates  5% Price/barrel <USD 60  
 Rate equivalent to ((0.125 x price of 
condensates) - 2.5) Price/barrel ≥USD 60  
n/a  Not applicable.  
Note:  BTU = British thermal unit.  
Source:  Hydrocarbons Revenue Law (Official Journal of 9  December  2019).  
 
60 Article 51 of the Hydrocarbons Law amended through the Decree published in the Official Journal 
of 4 May 2021; Fourth Transitional Article of the Decree published in the Official Journal of 4 May 2021; Public 
Policy on the Minimum Storage of Petroleu m Products ; and SENER. Viewed at: 
https://www.gob.mx/sener/es/articulos/politica -publica -de-almacenamiento -minimo -de-petrolifero s-
247326?idiom=es . 
61 Article 126 of the Hydrocarbons Law. The methodology for calculating the percentage of local content 
in permits is the same as the one established by SENER for allocations and contracts.  
62 Article 59 bis of the Hydrocarbons Law added th rough the Decree published in the Official Journal 
of 4 May 2021.  
63 The deductions permitted under the Law are: (a) 100 % of the original amount of the investments 
made for exploration, secondary recovery and non -capitalizable maintenance; (b) 25 % of the original amount 
for the development and extraction of oil or natural gas deposits, including import duties; (c) 10 % of the  
original amount of investments in transport and storage infrastructure for activities covered by the allocation, 
such as oil pipelines, gas pipelines, and storage terminals and tanks; (d) the costs and expenses of 
exploration, transport and delivery neces sary for the extraction of oil and natural gas deposits; and 
(e) the hydrocarbons extraction duty, paid during the corresponding period (Article 40 of the Hydrocarbons 
Revenue Law (Official Journal of 9 December 2019)).  WT/TPR/S/429 • Mexico  
 
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  4.48.   The authorities consider that PEMEX is of strategic importance for Mexico, as it is a profitable 
public asset and is the country's largest taxpayer. The federal govern ment considers it important to 
maintain profitability and ensure the sustainability of th e company in the long term. To this end, the 
Ministry of Finance and Public Credit (SHCP) has given priority to resolving the structural challenges 
faced by PEMEX, namely: (i) the high tax burden; (ii) the high level of financial debt and its financial 
cost; and (iii) the lack of resources to make the investments necessary for maintaining the required 
levels of production. The government has set three key objectives to overcome these challenges: 
(a) reduce the profit -sharing duty from 54 % to 40 %; (b) reduce  PEMEX's debt through capital 
contributions from the federal govern ment; and (c) reduce PEMEX's refinancing risk. In this context, 
in December  2021, PEMEX announced a repurchase and liability management operation with the 
aim of reducing the risk of refina ncing and the amount of the debt.64 The federal govern ment would 
contribute USD  3.5 billion to support this transaction. Furthermore, mechanisms and a financial 
structure will be implemented to enable the public sector to co -invest in exploration and extra ction 
projects. Between 2017 and 2021, PEMEX did not receive any subsidies or transfers.65 
4.49.   Through the liberalization of the trade in hydrocarbons in 2013, the Hydrocarbons Law 
enabled  PEMEX to continue marketing exclusively until 31  December  2017. Under t he Law, in 2018, 
the CNH tendered and awarded the contract for marketing natural gas to the CFE, and the contract 
for marketing crude oil to a foreign company. The contract with the CFE was signed for one year and 
was extended for one additional year. The contract for crude oil was signed for three years. In 
November  2020, when the contracts expired, the CNH awarded a contract for marketing oil and gas 
directly to PEMEX. This contract is valid for five years.66 
4.2.2   Electricity  
4.50.   The generation of electricity in nuclear power plants and the transmission and distribution of 
electricity are activities reserved to the State, for which the Federal Electricity Commission (CFE) 
enjoys exclusive rights. However, the CFE may grant contract s to private companies in order for 
them to build, expand and maintain infrastructure. These contracts are awarded through tenders 
and are subject to a local content requirement.67 The private sector and the CFE participate in the 
generation and marketing (supply) of electricity. To generate and market electricity, a permit from 
the Energy Regulatory Commission (CRE) is required.68 However, the CFE is the sole entity that has 
permission to market electricity for basic users.  
4.51.   The Law on the Electricity Indus try prohibits vertical and horizontal integration.69 This 
provision applies to both the CFE and private companies in the sector. In 2016, the CFE's activities 
were separated, with the creation of several subsidiaries (six for generation; one for transmissi on; 
one for distribution; and two for supply).70 In 2019, the provisions on the restructuring of the CFE's 
activities to reduce costs and improve management were amended.71 While the purpose of this 
 
64 SHCP press release No. 74 of 6 Dec ember 2021. Viewed at: 
https://www.gob.mx/shcp/prensa/comunicado -no-74-hacienda -anuncia -estrategia -de-apoyo -en-favor-de-la-
sostenibilidad -de-pemex . 
65 Banxico Economic Information System, " Ingresos y Gastos de PEMEX ". Viewed at: 
https://www.banxico.org.mx/SieInternet/consultarDirectorioInternetAction.do?accion=consultarCuadro&idCuad
ro=CG4&sector=9&locale=es . 
66 Onexpo Nacional news item of 20 November 2020. Viewed at: 
https://www.onexpo.com.mx/NOTICIAS/DEVUELVEN -A-PEMEX -COMERCIALIZACION_m5ezD ; and Reforma 
news item of 18 November 2020. Viewed at: 
https://www.reforma.com/aplicacioneslibr e/preacceso/articulo/default.aspx?__rval=1&urlredirect=https://ww
w.reforma.com/adjudica -cnh-venta -de-crudo -a-filial-de-pemex/ar2073426?referer= --
7d616165662f3a3a6262623b727a7a7279703b767a783a --. 
67 Article 30 of the Law on the Electricity Industry. In 2018,  SENER determined the methodology for 
measuring the percentage of local content. The Decision was published in the Official Journal of 28 June 2018.  
68 Article 12 of the Law on the Electricity Industry, as amended through the Decree published in the 
Officia l Journal of 9 March 2021.  
69 Article 8 of the Law on the Electricity Industry.  
70 Terms for the strict legal separation of the Federal Electricity Commission (CFE) (Official Journal 
of 11 January 2016).  
71 Terms for the strict legal separation of the Federal  Electricity Commission (Official Journal 
of 11 January 2016) and Decision amending the terms for the strict legal separation of the Federal Electricity 
Commission, published on 11 January 2016 (Official Journal of 25 March 2019).  WT/TPR/S/429 • Mexico  
 
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  change is to create a more efficient system, it also open s up the possibility for the CFE's activities 
to be reinstated, in order to once again strengthen its position in the sector.  
4.52.   The CRE continues to regulate transmission, distribution and marketing tariffs. Qualified users 
(whose demand is greater than or e qual to 1 MW) may purchase electricity directly from generating 
companies at an agreed price.  
4.53.   The electricity used by low -income agricultural producers and domestic users is subsidized.72 
4.54.   In 2021, the Law on the Electricity Industry was amended to change t he order in which 
generating companies can dispatch their production on the grid.73 However, the reform was 
suspended, as the private sector filed an appeal on grounds of unconstitutionality with the Supreme 
Court of Justice of the Nation (SCJN). The autho rities indicated that, in April  2022, the SCJN had 
dismissed the appeal. The reform was therefore approved but has yet to be implemented. The reform 
seeks to adopt a model that ensures the security of the electricity dispatch, as power plants use 
mainly re newable sources, which may create problems of intermittency in production and, therefore, 
compromise the dispatch.74 As a result, priority is given to the dispatch of electricity produced by 
the CFE's plants, whether they are hydroelectric plants or plants  using conventional sources of 
energy. Although this change seeks to guarantee supply, and strengthen the CFE, it could discourage 
private investment in renewable energy, by creating greater uncertainty for private operators.  
4.55.   Mexico promotes the use of cle an energy sources through clean energy certificates (CEL), and 
it set clean energy generation targets of 25 % in 2018, 30 % in 2021, 35 % in 2024, 40 % in 2035 
and 50 % in 2050.75 However, the changes to the order of the aforementioned electricity dispatch 
and the new rules for the granting of clean energy certificates (Box 4.2) could discourage private 
investment in renewable energies, which would make it difficult to meet the targets set. In this 
regard, it is important to highlight that currently the CFE does  not operate any solar or photovoltaic 
plants, and does not appear to have any plans to invest in this type of project.76 
Box 4.2 Clean energy certificates (CEL), 2017 -2022  
Clean energy certificates (CEL) are documents issued by the CRE which guarantee that a certain quantity of 
energy is produced using clean energy sources. These certificates are granted to power generating facilities 
for each megawatt -hour (MWh) produced using clean energy sources. To prove t hat their energy is clean, 
companies selling electricity to basic users have to purchase certificates on the wholesale electricity market, 
for the percentage of clean energy that they are selling.  
In accordance with the Law on the Electricity Industry, th e CRE grants clean energy certificates to: 
(1) plants  that began to operate as from 2014 (all private); and (2) CFE plants which were operating in 2014 
and which meet the minimum investment requirement to increase their production using clean energy source s. 
In 2014, none of the plants operated by the CFE met this requirement. However, as from 2019, the CRE 
began to grant clean energy certificates to all plants producing clean energy, regardless of any requirements, 
which benefit the CFE plants that did not  qualify in 2014.  
A minimum percentage of electricity sold by companies to basic users must be produced using clean energy 
sources. In 2022, this requirement is 13.9%. As was the case in 2017, the CFE is the only company that sells 
electricity to basic users. To prove compliance with this minimum requirement, the CFE must purchase a 
number of clean energy certificates equivalent to 13.9% of the energy sold. If the CFE does not meet the 
requirement, the CRE may issue it with a fine.  
 
72 Rural Energy Law (Offic ial Journal of 30 December 2002, as last amended on 28 December 2012), 
and information provided by the authorities.  
73 Article 101 of the Law on the Electricity Industry, amended through the Decree published in the 
Official Journal of 9 March 2021; and the Decision issuing the Policy on Reliability, Safety, Continuity and 
Quality in the National Electricity System (Official Journal of 15 May 2020).  
74 Strategic  Notes  of the Senate,  No. 128, March  2021.  Viewed  at: http://bibliodigitalibd.senado.gob.mx
/bitstream/handle/123456789/5162/Reforma%20LIE_20210312.pdf?sequence=1&isAllowed=y ; and BBVA 
Research  Economic  Analysis,  8 February  2021.  Viewed  at: https://www.bbvaresearch.com/en/publicaciones/m
exico-changes -in-electricity -indust ry-law-discourage -clean-and-less-expensive -energies . 
75 Electricity Law ; and Law on Energy Transition (Official Journal of 24 December 2015).  
76 Mexican Institute for Competitiveness (IMCO) note, 8 November 2020. Viewed at: 
https://imco.org.mx/cambiar -el-criterio -de-despacho -del-mercado -electrico -mayorista -abona -a-un-entorno -
de-incertidumbre -en-detrimento -de-la-competitividad -del-sector -y-del-pais. WT/TPR/S/429 • Mexico  
 
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  Clean energy ce rtificates were sold on the wholesale electricity market until 2018 through auctions or 
contracts. The auctions were suspended in 2018, and since then sales have been carried out solely through 
contracts, at an agreed price. This resulted in a price increa se. However, since 2019, as a result of granting 
clean energy certificates to all plants generating clean energy, the supply of certificates increased and, in 
principle, the price decreased. While this enables the CFE to purchase clean energy certificates at a lower 
cost, it could discourage private investment in plants using clean energy.  
Source:  Article 126 of the Law on the Electricity Industry, as amended through the Decree published in the 
Official Journal of 9  March  2021; Federal Economic Competition  Commission (COFECE) (2021), 
Transición hacia mercados competidos de energía: Los Certificados de Energías Limpias en la 
industria  eléctrica  mexicana . Viewed  at: https://www.c ofece.mx/wp -content/uploads/2021/05/CEL_
doc_vb2.pdf ; National  Energy  Control  Centre  (CENACE).  Information  viewed  at: https://www.cenace
.gob.mx/Paginas/SIM/MercadoCEL.aspx ; and research b y the Centre for Economic and Budgetary 
Research (CIEP). Viewed at: https://ciep.mx/nCB1 . 
4.3  Manufacturing  
4.56.   The manufacturing sector continues to be of significant importance for the Mexican economy, 
in terms of its contrib ution to both GDP and international trade. The sector's average contribution 
to GDP was 17.3 % between 2016 and 2020, and 18 % in 2021 (Table 4.10). The real growth rate 
for the sector is below that of the domestic economy. During the period 2016 -21, the sector 
expanded at an average annual rate of 0.6 % in real terms, which was greater than GDP growth 
(0.1%). The sector, like the  rest of the economy, contracted sharply in 2020 as a result of the health 
crisis, and began to recover in 2021 (Table 4.10).  
4.57.   The Mexican manufacturing sector is highly diversified. The main subsectors in terms of their 
contribution to manufacturing GDP co ntinue to be the food industry (22 % in 2020 and 21 % in 2021) 
and the production of transport equipment (20.9 % in 2020 and 19.17 % in 2021), which is Mexico's 
main export item, followed by the computer and communication equipment industry (9.3 % in 2020 
and 8 .7% in 2021), which is also an important export item (Table 4.10).  
Table 4.10 Main indicators for the agricultural sector, 2016 -21 
 
2016  2017  2018  2019  2020  2021  
Share of total GDP (% at current prices)  17.2 17.4 17.5 17.3 17.3 18.0 
Real growth rate (%, at constant prices)  1.6 2.8 1.8 0.2 -9.4 8.6 
Main sectors contributing to GDP  
Share of manufacturing GDP (% at current prices)  
 Food industry  20.8 20.2 19.9 20.2 22.0 21.0 
 Transport equipment  21.4 22.4 22.5 22.6 20.9 19.7 
 Computer and communication equipment, 
electronic components  9.3 9.0 8.9 9.4 9.3 8.7 
 Basic metal industries  5.8 5.9 6.0 5.6 5.9 7.1 
 Beverages and tobacco industry  6.0 5.9 6.0 6.3 6.4 6.4 
Real growth rate (%, at constant prices)  
 Food industry  3.3 2.6 2.9 2.0 0.1 1.8 
 Transport equipment  1.1 10.3 5.1 -0.1 -19.3 8.9 
 Computer and communication equipment, 
electronic components  1.4 4.4 -0.4 5.1 -8.5 9.8 
 Basic metal industries  1.4 -0.6 -2.0 -3.5 -7.2 10.1 
 Beverages and tobacco industry  7.5 3.1 4.4 3.2 -7.3 9.8 
Employment (% of total working population)  
 Manufacturing industries  16.3 16.8 16.8 16.7 16.5 16.5 
Manufacturing sector according to the WTO definition  
Exports  
Values (USD  million)  316,938  347,171  374,745  387,195  348,987  409,779  
Share of total exports (%)  84.8 84.8 83.1 84.1 83.7 82.9 
Growth rate (%)  -2.2 9.5 7.9 3.3 -9.9 17.4 
Most important products, according to HS chapter (% of total manufacturing)  
 87. Motor vehicles, tractors  27.7 29.3 30.8 31.3 28.8 27.9 
 85. Electrical machinery and equipment; image 
 and sound recorders and reproducers  24.1 23.5 21.9 20.7 21.5 21.2 
 84. Nuclear reactors, boilers, machinery and 
 mechanical appliances  19.4 19.0 20.1 20.8 21.5 20.8 
 90. Optical, photographic and precision 
 instruments and apparatus; medical or surgical 
 instruments and apparatus  5.1 5.0 5.1 5.1 5.3 5.0 
 39. Plastics and articles thereof  2.6 2.6 2.5 2.4 2.6 2.8 
Imports  
Values (USD  million)  329,701  352,663  384,598  378,252  322,781  422,410  WT/TPR/S/429 • Mexico  
 
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2016  2017  2018  2019  2020  2021  
Share of total imports (%)  85.2 83.9 82.8 83.1 84.3 83.5 
Growth rate (%)  -2.2 7.0 9.1 -1.7 -14.7 30.9 
Most important products, according to HS chapter (% of total manufacturing)  
 85. Electrical machinery and equipment; image 
 and sound recorders and reproducers  25.5 24.3 24.7 25.1 25.7 24.0 
 84. Nuclear reactors, boilers, machinery and 
 mechanical appliances  20.3 20.1 20.1 20.3 20.4 18.7 
 87. Motor vehicles, tractors  11.2 11.8 11.2 11.3 9.9 9.3 
 39. Plastics and articles thereof  6.7 6.6 6.6 6.5 6.8 7.0 
 90. Optical, photographic and precision 
 instruments and apparatus; medical or surgical 
 instruments and apparatus  4.4 4.3 4.0 4.3 4.9 4.8 
Manufacturing trade balance (USD  million)  -12,763  -5,492  -9,853  8,943  26,206  -12,631  
Source:  National Institute of Statistics and Geography (INEGI), Economic Information Bank (BIE), 
Short -term economic indicators and national accounts; Bank of Mexico, Economic Information 
System (SIE); and trade data provided by the authorities.  
4.58.   During the period 2016 -21 (most recent data), manufacturing exports (WTO classification) 
accounted for over 83.8 % of Mexico's total exports, and grew at an annual average rate of 5.3 %. 
Despite the diversification of the manufacturing sector, motor vehicles and tractors continue to be 
the main export item, representing 27.3 % in 2016, and 27.9 % in 2021, of manufacturin g exports, 
followed by office and telecommunications equipment, and electrical and non -electrical machinery 
(23.7 % in 2016 and 21.2 % in 2021). Over 80 % of manufactured goods are exported to the 
United  States. Imports also originate mainly in this market, f ollowed by China which, since 2016, 
has continued to gain importance as a market for the purchase of electrical machinery and 
appliances.  
4.59.   The tariffs applied to manufactured products (WTO definition) are relatively low, with an 
average MFN tariff of 4.6 % in 2016 and 5.9 % in 2021. The industries with the highest tariffs include 
food preparations (18.8 % in 2021), footwear (14.4 %) and textiles (12.8 %). Machinery and 
appliances, which are Mexico's most important manufacturing imports, have an average applied 
tariff of 4.2 %, lower than the average, and transport equipment, which is the main export item, is 
protected by an average tariff of 8.6 %. 
4.60.   Mexico continues to maintain unilateral quotas for imports of certain manufactured products, 
including polyester (textiles), motor vehicles and toys (Table  A3.3). Under various preferential 
arrangements (for example, the agreements with Argentina, Brazil, Cuba, El Salvador, the EU, 
Guatemala, Peru and Uruguay), Mexico also negotiated preferential quotas for  some manufactured 
products which, however, are not used.  
4.61.   The anti -dumping measures imposed by Mexico during the review period mostly affected 
imports of manufactured products (96 %). Of the 74 measures in force in 2021 (June), 52 affected 
base metals. Elec trical machinery and appliances, plastics and chemicals were also subject to 
anti-dumping measures. Base metals, as well as textiles and footwear, are also subject to automatic 
licensing (automatic permits) and non -automatic licensing (prior permits) for i mports, while 
chemicals are only subject to non -automatic licensing. In Mexico, both types of licensing can be used 
at the same time, as they serve different purposes ( Section 3.1.6).  
4.62.   Mexico continues to grant tax concessions, under different programmes, t o the manufacturing 
sector, such as the programme for the manufacturing, maquila and export services industry 
(IMMEX), to promote exports, and the sectoral promotion (PROSEC)  programmes , to promote 
competitiveness, and thus increase the integration of Mexi can production into the global market.77 
None of these programmes underwent substantial changes during the review period. Companies 
may be eligible for both the IMMEX programme and a PROSEC programme simultaneously 
(Section  3.3.1).  
4.63.   The IMMEX programme  continues to be of great importance for Mexico, particularly for the 
manufacturing sector. During the period under review, the number of companies operating under 
the IMMEX programme rose from 5,024 in 2016 to 5,191 in 2021. In 2021, these companies reported 
a total revenue of USD  293.4  million (USD  211.5  million in 2016). Of this total, 62 % corresponded 
to foreign sales, and the rest (38 %) was national revenue. The main imports and exports under the 
 
77 WTO document G/SCM/N/372/MEX of 12 January 2022.  WT/TPR/S/429 • Mexico  
 
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  programme were machinery, mechanical appliances or electrical  goods under HS chapters 84 
and 85, which is consistent with the functioning of a maquila regime. In 2016, exports of these 
goods accounted for 56.4 % of total exports, and 56.1 % in 2021, while imports accounted for 52.3 % 
of total imports in 2021 (Chart 4.2 ).78 Furthermore, the companies included in the IMMEX 
programme provided, on average, employment for 2.6  million workers during the period 2017 -21. 
4.64.   The PROSEC programmes have not changed substantially since they were launched.79 
Each PROSEC programme allow s for the importation, with a preferential tariff, of the inputs and 
machinery required to produce specific goods, regardless of whether the final product will be 
consumed on the domestic market or exported. Each PROSEC programme lists the inputs by tariff  
line, showing the corresponding preferential tariff.  
4.65.   The PROSEC programmes containing the largest number of inputs with preferential tariffs are 
those benefiting the automotive and automotive parts industry, the electronics industry and the 
electricity in dustry. In 2021, the most common preferential tariff rates granted under the PROSEC 
programmes were 0 % and 5 %, which were applied to 76.2 % and 19.1 % of the tariff lines covered, 
respectively.  
Chart 4.2 Exports and imports under the IMMEX programme by main HS chapters, 2016 
and 2021  
(% of IMMEX total exports or imports)  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
4.66.   Industrial policy is set out in the National Development Plan 2019-24 and in the Sectoral 
Programme for the Economy  2020-24.80 Both programmes place a special emphasis on the need  to 
increase the local content of "strategic sectors" and on the development of the most marginalized 
regions of the country, SMEs, the knowledge industry and government procurement as a tool to 
promote industrialization. The objectives of the policy will be achieved through the support provided 
to companies by means of programmes such as IMMEX and PROSEC,  the industrial productivity and 
competitiveness programme  (PPCI) and the software industry development programme (PROSOFT). 
Support will also be provided by Bancomext, as a pillar of financing ( Section 3.3.1).  
 
78 Information provided by the authorities.  
79 Decree establishing various sectoral promotion programmes (as last amended 
on 29 November  2012).  
80 National Development  Plan 2019-24 (Official Journal of 12 July 2019) and the Sectoral Progra mme for 
the Economy 2020-24 (Official Journal of 24 June 2020).  
33.3
23.1
11.5
7.3
4.4
2.7
1.6
0.8 0.51.113…29.4
26.7
10.9
7.3
3.6 2.8
1.9 1.81.11.113.5
0510152025303540
85 84 87 90 94 39 73 22 72 98Other
2016 202136.1
18.8
5.76.8
5.1 5.0
2.22.9
1.91.314.334.4
18.0
6.8 6.4 6.0
4.5
2.8 2.8 2.2
1.714.4
0510152025303540
85 84 90 39 98 87 72 73 76 74OtherHS chapters:
22. Beverages and spirits
39. Plastics
72. Iron and steel
73. Articles of iron or steel
74. Copper and articles thereof
76. Aluminium and articles thereof
84. Machinery and mechanical appliances
85. Electrical machinery and equipment
87. Motor vehicles
90. Precision, medical or surgical 
instruments
94. Furniture
98. Special proceduresImports ExportsWT/TPR/S/429 • Mexico  
 
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  4.4  Services  
4.4.1   Financial services  
4.67.   The Mexican finan cial system is regulated and supervised by the Bank of Mexico (Banxico) 
and the Ministry of Finance and Public Credit (SHCP). The SHCP conducts its supervision through 
three commissions: (a) the National Banking and Securities Commission (CNBV), which regu lates 
and supervises the institutions forming the country's financial system, including lending institutions, 
popular savings and loan institutions81, brokerage firms, investment funds, credit unions, 
development entities (public development trusts and dev elopment agencies) and other auxiliary 
credit institutions and organizations; (b) the National Insurance and Sureties Commission (CNSF), 
which regulates and supervises insurance institutions, bonding companies, and insurance, surety 
and reinsurance interme diaries ( Section 4.4.1.3); and (c) the National Pension Fund Commission 
(CONSAR), which regulates and supervises pension fund managers and investment companies 
specialized in pension funds. Other bodies connected with the financial system include the National 
Commission for the Protection and Defence of Financial Services Users (CONDUSEF), which advises, 
protects and defends users of financial services and promotes financial education; the Institute for 
the Protection of Bank Savings (IPAB), which prov ides deposit insurance to protect the money that 
savers deposit in banks; and the Tax Administration Service (SAT), which collects tax and customs 
resources as specified by law.  
4.68.   Since the previous review in 2017 the Mexican financial system has continued t o perform 
dynamically. As of 30  March  2022, the system was composed of 4,973 entities, though only 2,225 
of those were fully supervised by the CNBV; the other 2,748 were supervised solely for the 
prevention of money laundering and the financing of terroris m (see Table 4.11).82 
Table 4.11 Entities supervised by the CNBV, March  2022  
Entities  Number of entities in operation  
Fully supervised entities  2,225  
Financial group holding companies  21 
Commercial ("multiple") banking institutions  50 
Development banks and development entities  16 
Multipurpose financial companies  43 
Auxiliary credit organizations and activities (OAAC)  22 
Credit unions  78 
Savings and loan cooperative societies  155 
Sociedades financieras populares  (popular financial entities)  40 
Other popular savings and loan institutions  7 
Brokerage firms  36 
Investment funds  72 
Securities rating institutions  6 
Securities issuers  583 
Stock exchanges  2 
Derivative contract exchanges  1 
Central securities counterparties  1 
Securities depository institutions  1 
Other participants in securities and derivatives markets  47 
Participants in payment networks  131 
Credit information companies  3 
Investment advisors  142 
Other supervised entities  115 
Entities supervised only in relation to money laundering 
and the financing of terrorism  2,748  
Multipurpose financial companies, non -regulated entities  1.949  
Foreign exchange centres  752 
Money transmitters  47 
Total  4,973  
Source:  CNBV.  
 
81 These are the savings and loan cooperative societies (socaps), pop ular financial entities (sofipos) and 
community financial companies (sofincos).  
82 National Banking and Securities Commission (CNBV). Viewed at : http://www.gob.mx/cnbv/acciones -
y-programas/sectores -supervisados?idiom=es . WT/TPR/S/429 • Mexico  
 
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  4.69.   At the end of December  2021, Mexican commercial ("multiple") banks, the financial system's 
leading intermediaries, held total assets amounting to MXN  11,078  billion, representing a real annual 
decrease of 7.8 %. Their current credit por tfolio totalled MXN  5,435  billion (a real annual decrease 
of 2.0 % compared to the same month of 2020).83 Commercial bank assets represented 42.3 % 
of GDP, while non -bank financial intermediaries (NBFIs) accounted for 34 % of the assets. Banks and 
popular sav ings and loan institutions are the only financial intermediaries authorized to take deposits 
from the public (Table 4.12).  
Table 4.12 Financial system indicators, 2017 -21 
 2017  2018  2019  2020  2021  
Total assets (MXN billion)  
Commercial banks  9,023  9,567  9,829  11,187  11,078  
Development banks  1,936  2,073  2,150  2,375  2,278  
NBFIs  5,923  6,201  6,434  6,252  6,770  
Insurance  .. .. .. .. .. 
Total lending (MXN billion)  
Commercial banks  4,746  5,185  5,406  5,303  5,549  
Development banks  962 1,058  1,040  1,101  1,055  
NBFIs  2,336  2,456  2,434  2,459  2,596  
Total uptake (MXN billion)  
Commercial banks  5,340  5,801  6,083  6,672  6,962  
Development banks  1,025  1,082  1,137  1,212  1,210  
Popular savings and loan institutions  108 124 136 155 173 
..  Not available . 
Note:  The asset figures for NBFIs include those of general bonded warehouses, brokerage firms, foreign 
exchange offices, savings and loan cooperative societies (socaps), popular financial entities 
(sofipos), regulated multipurpose financial companies (sofomes), credit unions, investment funds 
(net assets) and social security agencies (INFONAVIT, FOVISSSTE, INFONACOT). The lending figures 
for NBFIs include those from general bonded warehouse s, savings and loan cooperative societies 
(socaps), popular financial entities (sofipos), regulated multipurpose financial companies (sofomes), 
credit unions and social security agencies (INFONAVIT, FOVISSSTE, INFONACOT).  
Source:  Information provided by th e authorities.  
4.70.   CNBV supervision of the 2,225 fully supervised entities covers prudential issues related to 
risk, control systems, management quality and preventive processes, as well as adequacy of 
liquidity, solvency and stability. The CNBV supervises the  other entities solely for the purposes of 
preventing money laundering and the financing of terrorism. The Law Regulating Financial 
Technology Institutions (Fintech Law) of 2018 applies mainly to electronic payment fund institutions 
and crowdfunding instit utions.  
4.71.   The CNSF supervises the regulatory compliance, solvency and financial stability of insurance 
and bonding institutions to safeguard the interests of the user public, promote the healthy 
development of those sectors and thus make their services as wi dely available as possible.  
4.72.   The Financial System Stability Council (CESF), composed of representatives of 
the SHCP,  CNBV, CNSF, CONSAR, IPAB and Banxico, monitors the financial system for risks to 
financial stability and issues recommendations to avoid, or  minimize the impact of, interruptions in 
financial system operations. Other inter -institutional bodies connected with the financial system 
include the National Council for Financial Inclusion (CONAIF), a consulting, advisory and coordinating 
body for the country's financial authorities with responsibility for formulating, implementing and 
monitoring the National Financial Inclusion Policy; and the Financial Education Committee (CEF), 
which promotes financial education for the responsible use of financial s ervices. The CEF is chaired 
by the SHCP and is made up of various authorities and financial institutions. The CESF, CONAIF 
and CEF are governed operationally by the Law Regulating Financial Groups.84 
 
83 CNBV, Información del sector de Banca Múltiple al cierre de diciembre de 2021 . Viewed at: 
https://www.gob.mx/cnbv/articulos/informacion -del-sector -de-banca -multiple -al-cierre -de-diciembre -de-
2021?idiom=es . 
84 Law Regulating Financial Groups (Official Journal of 10 January 2 014; last amended 
on 9 March  2018).  WT/TPR/S/429 • Mexico  
 
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  4.73.   Financial groups are an increasingly prominent feature o f the Mexican financial landscape, 
having amassed some MXN  11,292  billion in assets by the end of 2021. Most of the systemically 
important banks and some of the brokerage firms and investment funds belong to financial groups. 
The Law Regulating Financial G roups (LRAF) was amended in 2018 and now requires financial groups 
to consist of a holding company and any of the following financial entities: general bonded 
warehouses, foreign exchange offices, bonding institutions, insurance institutions, brokerage fir ms, 
commercial banking institutions, investment fund management firms, investment fund share 
distributors, pension fund managers, multipurpose financial companies, popular financial entities, 
financial technology institutions or other financial entities en titled to form part of a financial group 
under rules issued by the SHCP. The financial group must comprise at least 
two of the aforementioned financial entities, which may be of the same type. However, a financial 
group cannot be made up of only two multip urpose financial companies. It is also required that more 
than 50 % of every member's share capital be held directly or indirectly by the group's holding 
company. In addition, financial institutions whose share capital is more than 50 % held by a group 
member that is a commercial banking institution, brokerage firm or insurance institution, must also 
be part of the group. And as for group holding companies, though allowed to invest in real estate 
and service providers, they may not direc tly own shares in a commercial or industrial entity. Nor 
may they acquire liabilities without authorization from Banxico. Their only function must be that of 
shareholder.  
4.74.   The LRAF does allow Mexican subsidiaries of foreign financial institutions to be memb ers of a 
financial group – and also to be organized and operate as holding companies – if the foreign 
institutions concerned are incorporated in countries with which Mexico has concluded a treaty or 
agreement permitting the establishment of such subsidiari es on national territory. Such subsidiary 
holding companies are then governed by provisions applicable to holding companies and financial 
groups as contained in the treaty or agreement concerned and in the LRAF, or provisions arising 
from the LRAF, if unop posed. They are also subject to rules for the establishment of subsidiaries 
issued by the SHCP in consultation with Banxico, the CNSF or CONSAR as the case may be.  
4.75.   Authorization to form and operate financial groups is granted by the SHCP, or denied at its 
discretion, following consultation with Banxico. Depending on the members seeking to form the 
group, the CNBV, CNSF or CONSAR must also be consulted. Given their nature, such authorizations 
are non -transferable. A group's holding company is supervised by t he commission responsible for 
the activity in which the group's preponderant financial institution is engaged: the CNBV, CNSF 
or CONSAR. The supervisory commission for each financial group is determined by the SHCP taking 
into account, among other consider ations, the net worth of the entities concerned.  
4.76.   Financial sector reform undertaken by Mexico in 2014 sought to increase the contribution of 
financial intermediation to economic growth by ensuring greater access to bank credit at lower cost. 
Among other me asures, it provided for the prohibition of tied sales; the ability to transfer payroll 
and deposit accounts; stronger powers for CONDUSEF; a mandate for development banks to lend 
more in priority areas; an improved loan collateral regime; a mechanism for p eriodically evaluating 
the performance of commercial banks; the strengthening of Basel III prudential rules; the 
establishment of a judicial liquidation mechanism for insolvent commercial banks; a more flexible 
corporate regime for investment funds; the en actment of the new Law Regulating Financial Groups; 
tighter regulation of multipurpose financial companies (sofomes); and the transformation of 
Financiera Rural  into a new development entity, the National Agricultural, Rural, Forestry and 
Fisheries Develop ment Bank (FND).  
4.77.   Despite the reform, however, the credit penetration rate remains low: domestic financing for 
the non -financial private sector accounted for 36.6 % of GDP in the third quarter of 2021, well below 
the level in some Latin American countries (w hich exceeds 50 %) and the financial reform target 
(40% of GDP).85 
 
85 The financial reform was intended to boost credit penetration  by: (1) increasing competition; 
(2) increasing the credit granted by development banks; (3) encouraging the expansion of credit by 
commercial banks; (4) making the financial system sounder; and (5) making financial institutions more 
efficient. To that end, more than 30 pieces of legislation were revised and two new laws were enacted to 
regulate financial groups and insurance and bonding institutions.  WT/TPR/S/429 • Mexico  
 
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  4.4.1.1   Banks  
4.78.   The Mexican banking system consists of the Bank of Mexico (Banxico), commercial banks, 
development banks, public trusts for economic development set up by the federal govern ment and 
conducting financial activities, as well as bank offices responsible for self -regulation. Under the Law 
on Credit Institutions (LIC), public trusts for economic development are understood to conduct 
financial activities if they are mainly and usually engaged  in the professional performance of lending 
transactions, including the assumption of obligations on behalf of third parties, and such transactions 
represent 50 % or more of their total assets.86 
4.79.   Commercial and development banks are governed by the LIC of 1 990 as amended 
on 9 March  2018, 22  June 2018, 4  June 2019, 27  March  2020, 20  May 2021 and 11  March  2022. 
Secondary regulations known as the General Provisions Applicable to Credit Institutions (or the 
Single Circular on Banks (CUB)) were issued by the CNBV .87 While foreign investment in commercial 
banks is not restricted, there are restrictions on foreign investment in development banks (Article 6 
of the Foreign Investment Law and Section 2.4).  
4.80.   Under the LIC, and the free trade agreements it has signed, Mexico  permits the commercial 
presence of foreign banks through the establishment of subsidiaries of foreign financial institutions. 
To obtain CNBV authorization, t he foreign banks concerned must comply with rules for the 
establishment of such subsidiaries and r eceive a favourable opinion from Banxico. Once established 
there are no restrictions on the operations of such subsidiaries, which may offer the same services 
and products as a domestic commercial bank, and are subject to the same regulations. Foreign 
banks are also permitted to establish representative offices.  
4.81.   The organization and operation  of a commercial bank requires authorization from the CNBV 
with the prior agreement of its Governing Board and a favourable opinion from the Bank of Mexico. 
The CNBV mu st notify the bank within five working days of the authorization decision. Authorization 
to start operations is subject to additional authorization under Article 46 bis of the LIC.88 These 
authorizations, as well as modifications to them, are published in t he Official Journal and in 
two widely circulated newspapers. A commercial bank must take the form of a limited company with 
fixed capital. The minimum capital required is 90  million investment units (UDIs).89 For banks that 
specialize in a niche market, an d therefore do not engage in all the operations permitted by the LIC, 
a smaller amount, from 36  million to 54  million UDIs is required. There are three types of niche 
banks: those that specialize in savings and loan operations, those that provide corporate financial 
services and those specialized in issuing credit cards and other means of payment.90 The share of 
niche banks is low: they account for around 1 % of total assets, loans and deposits.  
4.82.   As noted above, the CNBV authorizes mergers and any ot her act of concentration between 
commercial banks subject to a favourable opinion from Banxico.91 The Federal Economic Competition 
 
86 Article 3 of the LIC. Viewed at: 
https://www.cnbv.gob.mx/Normatividad/Ley%20de%20Instituciones%20de%20Cr%C3%A9dito.pdf . 
87 The CUB is reviewed periodically an d can be consulted at: http://www.cnbv.gob.mx/SECTORES -
SUPERVISADOS/BANCA -MULTIPLE/Paginas/Normatividad.aspx . 
88 In accordance with Article 46 bis of the LI C, the CNBV authorizes commercial banking institutions to 
start operations or add operations not previously authorized if they can prove the following: (a) the operations 
in question are expressly indicated in their by -laws; (b) they have the minimum capit al required according to 
the operations they intend to carry out; (c) they have the appropriate governing bodies and corporate 
structure to carry out those operations; (d) they have the necessary infrastructure and internal controls in 
place; and (e) they are up to date in the payment of fines for non -compliance with the LIC and have acted on 
the observations and taken the corrective measures formally indicated by the CNBV and Banxico.  
89 Investment units (UDIs) are units of value that are used to discharge mortgage credit obligations or 
any commercial act. Their value is adjusted for inflation in national currency and is published daily by Banxico 
in the Official  Journal.  The value  of a UDI can be found  at: https://www.banxico.org.mx/SieInternet/consultarD
irectorioInternetAction.do?sector=8&accion=consultarCuadro&idCuadro=CP150&locale=es . As of 
25 February  2022, the value was MXN 7.17.  
90 Articles 19 and 46 of the LIC, Article 2 of the CUB, and the National Council for Financial Inclusion 
(2014), Reporte de Inclusión Financiera . 
91 According to Article 61 the Federal Law on Economic Competition (LFCE), concentration  means "the 
merger, acquisition of control or any act between competitors, suppliers, customers or any other economic 
actors by virtue of which companies, associations, shares of stock, capital, trusts or assets are joined". On this 
point, the LFCE explici tly requires that COFECE authorize mergers of relevant economic actors and empowers it 
to issue sanctions as appropriate.  WT/TPR/S/429 • Mexico  
 
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  Commission (COFECE) must also be consulted to authorize a merger (Article 27 of the LIC).92 
Mergers of commercial banks belon ging to financial groups are subject to the provisions of the Law 
Regulating Financial Groups.  
4.83.   The Institute for the Protection of Bank Savings (IPAB) is the federal govern ment institution 
responsible for administering bank deposit insurance for savers.93 IPAB guarantees the bank deposits 
of mainly small and medium -sized savers and is responsible for liquidating insolvent banks at the 
lowest possible cost.94 IPAB helps to keep the banking system stable and to safeguard the national 
payment system. The bank deposits of natural or legal persons are guaranteed up to  400,000 UDIs, 
automatically and at no charge to savers.95 
4.84.   Commercial banks performed well between 2017 and 2019 (Table 4.13). Assets increased 
from MXN  9.02 trillion in 2017 to MXN  9.83 trillion in 2019, a nominal increase of 8.9 %. Credit also 
grew during that period, from MXN  4.75 trillion in 2017 to MXN  5.41 trillion in 2019, a nominal 
increase of 13.9 %. In 2020, as a reflection of greater caution during the pandemic, deposit accounts 
grew and thus  so did commercial bank assets. On the other hand, as economic activity contracted 
so did credit, by 2.2 %. During the first half of 2021, assets shrank by 5.8 %, as did lending, by 1.1 %. 
Table 4.13 Commercial b anking activity indicators, 2017 -21 
(MXN  billion and  %) 
 Assets  Deposits  Loans  
Total  Annual 
variation 
(%) Total  Annual 
variation 
(%) Total  Annual 
change (%)  
2017 9,023   5,340   4,746   
2018 9,567  6.0 5,801  8.6 5,185  9.3 
2019 9,829  2.7 6,083  4.9 5,406  4.3 
2020 11,187  13.8 6,672  9.7 5,303  -1.9 
2021 (July)  11,078  -1.0 6,962  4.3 5,549  4.6 
Source:  CNBV.  
4.85.   The commercial banking sector remains highly concentrated. As of December  2021, 67 % of 
sector assets were held by the five largest banks (three of which were  foreign -owned ) and 83.4 % 
by the 10 largest.96 The top five commercial banks by asset size are: BBVA Mexico (22.15 % of total 
assets); Santander (14.81 %); Banamex (12.43 %); Banorte (11.16 %); and HSBC (6.45 %). 
4.86.   Commercial banks continued to have an adequate loan performance ratio, good levels of 
solvency and liquidity and positive rates of return during the review period (Table 4.14). Despite the 
contraction of economic activity, the delinquency rate remained low, rising slightly (to 2.56 %) 
in 2020 before falling back again to its pre -pandemic level (2.21 %) in 2021. Rates of return also 
 
92 In the case of mergers between financial institutions supervised by the CNBV, and commercial banks 
in particular, Article 27 of the LIC provides that "For the merger of two or more commercial banks, or between 
a commercial bank and any company or financial institution owning a commercial bank, prior authorization is 
required from the National Banking and Securities Commission, with the  approval of its Governing Board, after 
consulting with the Federal Competition Commission and receiving a favourable opinion from the Bank of 
Mexico".  
93 IPAB online information. Viewed at: cnBV online http://www.ipab.org.mx/ipab and information. 
Viewed at: http://www.cnbv.gob.mx/SECTORES -SUPERVISADOS/BANCA -MULTIPLE/Paginas/Preguntas -
Frecuente s.aspx . 
94 Bank resolutions are regulated by the LIC, Second Section, Article 165 et seq . The CNBV is the 
institution in charge of that process, in which IPAB collaborates in determining the resolution method to be 
followed. See http://www.ipab.org.mx/docs/documentos/metodos -de-resolucion -bancaria.pdf . 
95 Obligations under financial operation agreements to pay specified sums in national currency as agreed 
among the intermediaries concerned, for receivables (excepting checks) and more generally as agreed in 
commercial contracts or in other acts of commerce, may be denominated in UDIs. The daily value of the UDI 
in MXN is published periodically by the Bank of Mexico in  the Official Journal. Source: Bank of Mexico, in 
accordance with the Decree (of the Congress of the Union) establishing the obligations that may be 
denominated in investment units (UDIs) and amending and supplementing various provisions of the Federal 
Tax Code and the Income Tax Law. Banxico information. Viewed at: https://www.banxico.org.mx/marco -
normativo/marco -juridico/unidades -de-inversion/%7BDA0AB188 -A0E0-BA5C -BCD4 -6F3F2AB1C726%7D.pdf . 
96 CNBV, Información del sector de Banca Múltiple al cierre de diciembre de 2021 . Viewed at: 
https://www.gob.mx/cnbv/articulos/informacion -del-sector -de-banca -multiple -al-cierre -de-diciembre -de-
2021?idiom=es . WT/TPR/S/429 • Mexico  
 
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  declined during the pandemic, especi ally in 2020, but rose again in 2021. The coverage ratio 
remained high.  
Table. 4.14 Commercial banking financial indicators, 2017 -21 
(%) 
Financial indicators  Dec. 
2017  Dec. 
2018  Dec. 
2019  Dec. 
2020  Dec. 
2021  
Coverage index  154.91  152.36  146.18  160.10  160.49  
Liquidity coverage ratio (LCR)  174.88  197.82  188.90  240.88  240.06  
Capital adequacy ratio (CAR)  15.57  15.91  15.98  17.70  19.53  
Rates of return       
Return on assets (ROA)  1.59 1.68 1.67 0.91 1.64 
Return on equity (ROE)  15.23  16.01  15.47  8.96 14.60  
Delinquency rate (DR)  2.15 2.11 2.20 2.56 2.05 
Implicit lending rate  12.76  13.12  13.43  11.66  11.06  
Implicit borrowing rate  4.15 4.74 5.16 3.42 2.89 
Financial intermediation margin  8.61 8.37 8.27 8.24 8.17 
Source:  CNBV and Banxico online information.  
4.87.   Mexico has applied the Basel III rules since 2015, in particular with regard to solvency and 
liquidity. The capital adequacy ratio (CAR), which measures solvency, has remained at all times well 
above the required minimum of 10.5 %, even during the COVID -19 pandemic. In December  2021, 
the CAR was 19.5 %, almost double what was required, which shows how well Mexican banks are 
capitalized. The high rate is also a reflection of the economic downtu rn during the pandemic, and 
related increases in the deposit accounts of cautious savers.  
4.88.   Use of the liquidity coverage ratio (LCR)  was introduced  in 2015  to ensure the ability of banks 
to meet their obligations for the next 30 days. The LCR must be greate r than 100 %, that is, the 
value of liquid assets held by a financial institution must be greater than or equal to potential cash 
outflows. Mexico implemented the LCR gradually, according to bank size and years in operation. 
Since 2016, all banks have been required to comply with a minimum LCR determined according to 
the size of the institution. Commercial banks must comply with additional capital conservation and 
countercyclical buffer requirements.  
4.89.   To encourage lending during the pandemic, Banxico and the CNBV temporarily relaxed 
the LCR requirement. Between 28  February  2020 and 28  February  2022, commercial banks classified 
according to different liquidity coverage scenarios, defined as II, III and IV, would not be found in 
breach of the 100 % requirement.97 The scenarios were defined as ranges in the average liquidity 
coverage shortfall for every day within each month, as follows: For the period 
between  28 February  2020 and 31  August  2021, the ranges allowed were 85 % to 100 % 
(scenario  II), 70 % to 85 % (scenario III) and 50 % to 70 % (scenario IV); between 1  September 
and 30 November  2021, they were 90 % to 100 % (scenario II), 75 % to 90% (scenario III) and 60 % 
to 75 % (scenario IV); and between 1  December  2021 and 28  February  2022, the allowed ranges 
were 9 5% to 100 % (scenario II), 80 % to 95 % (scenario III) and 65 % to 80 % (scenario IV). Only 
institutions in scenario V (below the lower levels for scenarios IV) would be subject to measures 
limiting their operations between 28  February  2020 and 28  February  2022.98 Despite these 
exceptions, commercial banks maintained their median LCR well above the legal 
 
97 This decision was based on a determination by the Committee for the Regulation of Bank Liquidi ty, 
on 14 June 2018, that the Liquidity Provisions would permit temporary total or partial exemptions for 
commercial banking institutions during liquidity shortfalls arising on a market -wide basis.  
98 For a commercial banking institution falling under scena rio V, the Liquidity Provisions authorize 
the CNBV to order the partial or total restriction or suspension of operations such as: (i) investments in 
securities and debt instruments other than those classified in the Tier I Group, in accordance with Annex 1  of 
those provisions; (ii) loans to financial institutions other than commercial banks; or (iii) loans to commercial 
banks. Joint Regulations of the SHCP, Banxico and the CNBV, 26 February 2020. Viewed at : 
https://www.banxico.org.mx/marco -normativo/normativa -emitida -por-el-banco -de-mexico/reglas -conjuntas -
requeri mientos -de-liquidez -para-l/%7B222DE3CE -F2A1-95A7-7D51 -8CC9BC7A4249%7D.pdf . WT/TPR/S/429 • Mexico  
 
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  requirement:  231.94 % in the third quarter of 202199 and as high as 240.88 % in the fourth quarter 
of 2020.100 
4.90.   A substantial part of loans issued by financial inst itutions during the review period went to 
the business sector. In 2021, businesses accounted for 47.8 % of their total lending (loan portfolio), 
with 84.8% of those business loans going to large companies and trusts and 15.2 % to MSMEs. In 
the same year, con sumer loans accounted for 18.4 % of total lending, home loans for 19.5 %, 
government entities for 11.1 % and other financial bodies  for 3.2 %.101 
4.91.   Development banks and development entities are part of the Federal Public Administration, 
but under the LIC and legislation specific to each are organized as national credit institutions with 
their own legal personality and assets. The SHCP is responsible for regulating their operations. 
Development banks are subject to the same prudential rules as those applying to commercial banks. 
The 2014 financial reform included amendments to the LIC and the Organic Laws of Development 
Banking pertaining to: their man date; financial inclusion and gender perspective; human resources; 
operational flexibility to permit greater lending volume; transparency; control and oversight and 
capital adequacy.102 
4.92.   The National Survey on Financial Inclusion (ENIF) has been prepared by the CNBV, in 
collaboration with the National Institute of Statistics and Geography (INEGI), since 2012. ENIF 
monitors trends  in the financial inclusion of Mexico's population as users of different financial 
products and services, means of payment and physi cal and digital access channels, and identifies 
possible barriers to full participation by all in the financial system. For people aged 18 to 70, 
ENIF findings from the 2021 survey and the previous survey in 2018 included the following: 67.8 % 
(56.7  million  of the people in that age group) had acquired at least one formal financial product 
(savings account, loan, insurance or pension) in 2021, similar to the level in 2018; 49.1 % 
(41.1  million people) had at least one formal savings account in 2021, compared to 47.1 % in 2018; 
and 32.7 % (27.4  million) had obtained at least one formal loan in 2021, up from 31.1 % in 2018.103 
4.93.   The Mexican development banking system now consists of six institutions attending to a broad 
spectrum of sectors and activity: SMEs, public w orks, support for foreign trade, housing and savings 
promotion, and credit for the military sector. Those institutions are Nacional Financiera, S.N.C.  
(NAFIN); Banco Nacional de Obra y Servicios Públicos, S.N.C . (BANOBRAS); Banco Nacional de 
Comercio Exter ior, S.N.C.  (BANCOMEXT); Sociedad Hipotecaria Federal, S.N.C.  (SHF); Banco del 
Bienestar  (BABIEN); and Banco Nacional del Ejército, Fuerza Aérea y Armada, S.N.C.  (BANJERCITO). 
As of December  2021, their combined assets amounted to MXN  2,278  billion. The tw o largest 
development banks are BANOBRAS and NAFIN, which accounted for 63.6 % of those assets 
in 2021.104 Total lending by development banks amounted to MXN  1,055  billion in 2021.  
4.94.   In response to the difficult global economic and financial situation resultin g from the 
COVID -19 pandemic, Mexico introduced a series of measures mainly aimed at stabilizing financial 
markets and facilitating the flow of credit to households and businesses. Some of the measures were 
coordinated among several financial authorities. In early 2020, Banxico approved the provision 
 
99 SHCP, Banxico and CNBV, Press release No. 112 of 9 November 2021. Coeficiente de Cobertura de 
Liquidez correspondiente al Tercer Trimestre de 2021 . Viewed at: https://www.cnbv.gob.mx/SECTORES -
SUPERVISADOS/BANCA -
MULTIPLE/Prensa%20%20Sector%20Bancario/Comunicado%20de%20Pr ensa%20112%20CCL%20BM%203T
%202021.pdf . 
100 SHCP, Banxico and CNBV, Press release No. 037 of 21 April 2021. Coeficiente de Cobertura de 
Liquidez correspondiente al Cuarto Trimestre de 2020 . Viewed at: https://www.cnbv.gob.mx/SECTORES -
SUPERVISADOS/BANCA -
MULTIPLE/Prensa%20%20Sector%20Bancario/Com unicado%20de%20Prensa%2037%20CCL%20BM%204t%2
02020.pdf . 
101 CNBV, Información del sector de Banca Múltiple al cierre de diciembre de 2021 . Viewed at: 
https://www.gob.mx/cnbv/articulos/informacion -del-sector -de-banca -multiple -al-cierre -de-diciembre -de-
2021?idiom=es . 
102 Article 30 of the LIC and online information from the CNBV. Viewed at: 
http://www.cnbv.gob.mx/SECTORES -SUPERVISADOS/BANCA -DE-DESARROLLO/Descripcion -del-
Sector/Paginas/default.aspx . 
103 Information provided by the authorities based on ENIF 2021. View ed at: 
https://www.gob.mx/cnbv/prensa/comunicado -no-34-encuesta -nacional -de-inclusion -financiera -enif-2021. 
104 CNBV, Boletín Estadístico Banc a de Desarrollo , September 2021. Viewed at: 
http://portafoliodeinformacion.cnbv.gob.mx/bd1/Paginas/infosituacion.aspx . WT/TPR/S/429 • Mexico  
 
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  of MXN 800,000  million (equivalent to 3.3 % of 2019 GDP) for measures to strengthen the financial 
system and support liquidity in national currency. The measures included: (a) a reduction 
of MXN 50,000  million, as of 1  April 2020, in the monetary regulation deposits (DRM) commercial 
and development  banks are required to maintain in Banxico, freeing up additional resources for 
lending and maintaining or expanding credit lines; (b) the establishment of special accounting 
criteria for the following institutions: (i) for financial institutions (as from 27 March  2020), partial or 
total deferral of loan service payments (principal and interest) for up to four months, with possible 
extension for two additional months, on the entire loan balance of customers whose ability to pay 
had been affected by the pand emic; (ii) for popular financial entities and savings and loan 
cooperative societies (as from 1  April 2020), the total or partial deferral of principal and interest 
payments for up to six months on consumer, housing and commercial loan balances (applicable  in 
the case of commercial loans to credit unions also), and up to 18 months for loans to the rural 
sector105; (c) the voluntary suspension of dividend payments; and (d) the provision of resources 
enabling banks to channel credit to MSMEs and individuals af fected by the pandemic.106 
4.95.   In March  2020, the Foreign Exchange Commission (composed of officials from the SHCP and 
Banxico) decided to expand the exchange coverage programme from USD  20,000  million 
to USD 30,000  million. That programme consists of non -deliverable forward (NDF) transactions in 
the foreign exchange market settled in Mexican pesos. That same month Banxico also announced 
the establishment of temporary reciprocal  currency arrangements (swap lines) with the Federal 
Reserve of the United States for  up to USD  60,000  million. In addition, amendments were made to 
the Market Makers Programme to increase the participation of market maker institutions in the debt 
market.  
4.96.   In April  2020, Banxico announced additional measures to promote the orderly functioni ng of 
financial markets, strengthen credit channels and provide liquidity for healthy development of the 
financial system.107 In an initial phase, until September  2020, MXN  250,000  million would be 
provided to commercial banks and development institutions f inancing MSMEs and individuals 
affected by the pandemic. The resources would come from the DRM reduction and if necessary 
additional financing provided by Banxico at terms of 18 -24 months at a cost equal to the overnight 
interbank interest target rate. Ban xico then decided to open an additional financing facility of up 
to MXN 100,000  million, based on collateralized corporate debt, for commercial bank financing 
of MSMEs, also for 18 to 24 months at the overnight interbank interest target rate. Additional 
measures included the following: a reduction in the interest rate of the Ordinary Additional Liquidity 
Facility (FLAO); an expansion of the securities eligible for FLAO, to facilitate more liquidity for 
development banks through collateralized debt or repurc hases at the same cost as for commercial 
banks108; an MXN  100,000  million window to repurchase government securities at longer terms than 
in regular open market operations and at a cost equivalent to 1.02 times Banxico's average overnight 
interbank interest  rate; and a Corporate Securities Repurchase Facility (FRTC) to provide liquidity to 
credit institutions by purchasing their short -term corporate securities and long -term corporate debt 
instruments, which owing to the current uncertainties could not be liq uidated in the secondary 
market.  
4.97.   Most of the liquidity infusion measures to overcome the adverse effect of the COVID -19 
pandemic on domestic financial markets, including the repurchase facilities  for government 
securities109 and corporate securities110, were  extended until 30  September  2021. The widened 
 
105 In addition, the CNBV issued special accounti ng criteria for the commercial credits of development 
entities (FOVI, FIFOMI, FIRA), general bonded warehouses and Financiera Nacional de Desarrollo . 
106 Banxico, Reporte de Estabilidad Financiera -Primer Semestre de 2020 . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/reportes -sobre -el-sistema -financiero/%7BA66FA96C -
EC89-D558 -3342-F303E53042D5%7D.p df. 
107 Banxico, Press release, 21 April 2020, Medidas adicionales para promover un comportamiento 
ordenado de los mercados financieros, fortalecer los canales de otorgamiento de crédito y proveer liquidez para 
el sano desarrollo del sistema financiero.  
108 The FLAO, available since 2008, offers liquidity to commercial banks through collateralized credits or 
repos  at a cost between 2 and 2.2 times Banxico's target overnight interbank interest rate. To increase the 
liquidity of commercial banks, Banxico decided to reduce the cost of collateralized credits or repos to 1.1 times 
its target overnight interbank interest rate.  
109 The amount available for this facility remained at MXN 100,000 million during March and April 
of 2021, decreased to MXN 65,000 million from M ay to July 2021, and to MXN 35,000 million in August and 
September. The last operations were carried out on 30 September 2021.  
110 The amount available for this facility remained at MXN 100,000 million during March and April 
of 2021, decreased to MXN 65,000 million from May to July, and to MXN 35,000 million in August and WT/TPR/S/429 • Mexico  
 
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  eligibility of debt securities in FLAO and of collateral for foreign exchange hedges settled in US dollars 
were extended until 31  August  2021.111 For the financing of MSMEs and individuals affected by 
the COVID -19 pandemic, the special liquidity measures and the facility for financing based on 
collateralized corporate credits were extended to 30  September  2021, with the aggregate amount 
of those pr ogrammes kept at MXN  350,000  million.112 
4.98.   Circular 13/2020, published in the Official Journal of 17  April 2020, established an exception 
to the provisions regulating credit cards, temporarily allowing banks not to charge the legal minimum 
amount for credit c ard debt until 30  September  2020.113 Circular 41/2020, published in the Official 
Journal of 28  October  2020, extended this derogation for the period from October  2020 to 
January  2021.114 
4.99.   Table 4.15 shows how all of these temporary facilities were used. As of 30 September  2021, 
the total cost of the measures as incurred in national currency amounted to MXN  683,360  million 
(USD  32,950  million), and as incurred in foreign currency, to USD  22,690  million.115 
Table 4.15 Credit facilities established in response to the COVID -19 pandemic, 
30 September  2021  
 Date of 
circular  Number of 
contracts 
signed with 
banks  Programme 
amount 
MXN/USD  Current 
commitment  Amount 
allocateda 
I. Liquidity measures  
Monetary regulation depositb 04/11/2020  n.a. 50 50 50 
Ordinary additional liquidity facilityb,c 26/02/2021  30 n.a. 0 0 
Preservation of excess liquidity during 
trading hoursb      
Government securities repurchase 
windowd,e 26/02/2021  39 35 34.45  465.0  
Temporary collateralized financing 
facility  26/02/2021  5 15 11.56  63.19  
Corporate securities repurchase facilityd,f 26/02/2021  30 35 7.03 44.83  
II. Measures to foster the orderly functioning of financial markets  
Repurchase of government securitiesd 03/11/2015  n.a. 100 14.98  14.98  
Currency exchange coverage 
programme (USD billion)d,g 30/03/2017  25 30 7.49 7.49 
USD financing through the Federal 
Reserve swap line (USD billion)c,d 19/06/2020  21 60 0.10 15.20  
III. Measures to strengthen credit channels  
Financing from the DRM or repurchase 
measures for MSMEs and individualsb,c 26/02/2021  4 250 8.72 13.96  
MSME financing with collateralized 
corporate debtb 26/02/2021  6 100 30.75  40.22  
 
September. The last operations were carried out on 30 September 2021. Additionally, with the aim of 
continuing to encourage the placement of corporate debt in the primary market, such  placements 
between  15 July 2020 and 30 September 2021 remained eligible and reportable to Banxico until 
31 December2021  or 30 June 2023, depending on the results of placements and allocations in the primary 
market.  
111 Banxico also carried out a process of gradual reduction for this facility: the available amount 
remained at MXN 50,000 million during March and April 2021, decreased to MXN 30,000 million from May 
to July, and to MXN 15,000 million in August and September. The last operations were carried out 
on 30 September 2021.  
112 Banxico Information. Viewed at: https://www.banxico.org.mx/publicaciones -y-
prensa/miscelaneos/%7B606E5612 -53D1-90D0 -7993-B1A76BF714D2%7D.pdf . 
113 Banxico, Circular 22/2020. Medidas Provisionales en Materia de Montos de Pago Mínimo Aplicables a 
Créditos, Préstamos o Financiamientos Revolventes Asociados a Tarjetas De Crédito, en Relación con la 
Pandemia de Covid -19. Viewed at: https://www.banxico.org.mx/marco -normativo/normativa -emitida -por-el-
banco -de-mexico/circular -22-2020/%7BF24EFF46 -361D -B40C -2A6A-B9E114B60B5F%7D.pdf . 
114 Banxico, Circular 41/2020. Asunto: Modificaciones a las Medidas Provisionales en Materia de Montos 
de Pago Mínimo Aplicables a Créditos, Préstamos o Financiamientos Revolventes Asocia dos a Tarjetas de 
Crédito, en Relación con la Pandemia de Covid -19. Viewed at: https://www.b anxico.org.mx/marco -
normativo/normativa -emitida -por-el-banco -de-mexico/circular -22-2020/%7B29880DF3 -C29B -52F8-1DB5 -
2170C829A75F%7D.pdf . 
115 Banxico, Uso de las medidas para promover un comportamiento ordenado de los mercados 
financieros, fortalecer los canal es de otorgamiento de crédito y proveer liquidez para el sano desarrollo del 
sistema financiero.  Informe al 30 de septiembre de 2021. Viewed at: https://www.banxico.org.mx/portales -de-
usuarios/d/%7BB6D5C0CC -F39B-F61A-F36A-37A292BEB0EE%7D.pdf . WT/TPR/S/429 • Mexico  
 
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   Date of 
circular  Number of 
contracts 
signed with 
banks  Programme 
amount 
MXN/USD  Current 
commitment  Amount 
allocateda 
Total measures in MXN (billion)h   585 158.20  692.20  
Total measures in USD (billion)    90 7.59 22.70  
n.a. Not applicable.  
a Amount allocated is the total for all calls.  
b Facility for commercial and development banks.  
c Accepted collateral includes amounts deposited in the Bank of Mexico (DRM, deposits in USD, OMO 
deposits or TIIE (Interbank Equilibrium Interest Rate) deposits).  
d Facility aimed at credit institutions acting on their own account, and at brokerage firms, investment 
funds, as well as other institutions in the financia l sector through the intermediary of a bank.  
e Accepted collateral included government, IPAB and Banxico securities in national currency, UDIs or 
eligible currencies.  
f Accepted collateral, subject to applicable credit quality criteria, included corporate securities issued 
in national currency, UDIs or eligible currencies by legal entities resident in Mexico and by 
commercial banks under certain conditions.  
g The Foreign Exchange Commission decided to increase the size of this programme from  
USD 20 billion to USD  30 billion. As of 30  September  2021, USD  7.5 billion had been allocated.  
h The total amount does not include an additional measure concerning trading hours for the 
generation of liquidity through open market operations.  
Source:  Banxico, Uso de las medidas para promover un comportamiento ordenado de los mercados 
financieros, fortalecer los canales de otorgamiento de crédito y proveer liquidez para el sano 
desarrollo del sistema financiero. Informe al 30 de septiembre de 2021 . Viewed at: 
https://www.banxico.org.mx/portales -de-usuarios/d/%7BB6D5C0CC -F39B-F61A-F36A-37A292BEB0
EE%7D.pdf ; and Banxico, Reporte de Estabilidad Financiera, Diciembre 2021 . Viewed at: 
https://www.banxico.org.mx/publicaciones -y-prensa/reportes -sobre -el-sistema -financiero/%7B1826
5301-01FF-CE2A -F381-19BB9DCB1E4B%7D.pdf . 
4.4.1.2   Insurance  
4.100.   Insurance activity in Mexico is regulated by the Law on Insurance and Bonding Institutions  
(LISF).116 The Single Circular on Insurance and Bonding, which constitutes the secondary regulation,  
was enacted in 2014.117 During the period under review, various amending agreements and circulars 
were issued, in particular to address the COVID -19 health emergency, suspend the elapsing of 
procedural deadlines and introduce temporary regulatory measures.118 
4.101.   The LISF strengthened the legal framework for insurance and bonding to align with 
international standards and best practices, particularly with regard to solvency, stability and 
security. In regulating competition within the sector, the LISF introduced reforms to promote more 
rigorous practices. It covers supervision in three main areas: (a) financial solvency; (b) operations 
and corporate governance and (c) transparency.  
4.102.   Under the LISF, companies are authorized to organize and operate as insurance insti tutions 
or mutual societies in one or more of the following lines of business: (a) life; (b) accident and illness 
(in one or more of the following categories: personal accidents, medical expenses and health); and 
(c) casualty. Insurance institutions can pr ovide reinsurance in the business lines and categories 
covered by their authorization or can be authorized to operate as reinsurers exclusively. While they 
can operate in more than one line of business, a single company cannot conduct both life and 
casualt y insurance operations. Companies operating in both lines when the LISF was enacted, 
however, retain the right to continue doing so. The LISF stipulates that pension insurance derived 
from the social security laws forms part of life insurance operations.  
 
116 Law on Insurance and Bonding Institutions (Official Journal of 4 April 2013; last amended 
on 22 June 2018). This Law entered into force on 4 April 2015.  
117 The Circular is periodically reviewed and published online at: https://lisfcusf.cnsf.gob.mx/CUSF . 
118 For example, Circular 5/21 amending the Single Circular on Insurance and Bonding, published in the 
Official Journal on 30 March 2021, extended the deadlines from 120 to 180 calendar days from the start of 
validity for debtors to record estimates for questionable surety insurance charges as well as questionable 
premiums charged for administrative bonds; and from 90 to 150 calendar days to record such estimates in the 
case of liability insurance and premiums charged for bonds other than administrative bonds, such extension to 
be effective for the period between 1 April 2020 and 30 June 2021. That period wa s extended 
to 31 December  2021 by Amending Circular 22/21 of 4 of January 2022.  WT/TPR/S/429 • Mexico  
 
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  4.103.   The National Insurance and Sureties Commission (CNSF), a decentralized body of the 
Ministry of Finance and Public Credit, is responsible for supervising insurance and bonding 
institutions to enforce regulatory compliance. It is also responsible for safeguar ding the financial 
solvency and stability of such institutions and ensuring that the services provided by the sector reach 
the majority of the population. This supervisory function is carried out in accordance with the 
relevant international standards.119 
4.104.   As in the commercial banking sector, Mexico authorizes the commercial presence of foreign 
insurance companies through subsidiaries and representative offices. CNSF authorization is required 
for the establishment of subsidiaries as well as mergers between in surance companies, subject to 
the opinion of COFECE (Articles 271 -272 of the LISF).  
4.105.   The requirements for establishment and operation in the Mexican insurance market have not 
changed since 2014,  when the doors were opened for 100 % foreign direct investment (FDI) in 
insurance activity.120 All insurance companies need to be authorized by the CNSF and must be 
established as limited companies with fixed or variable capital. The minimum paid -in capital 
requirement depends on the line of business: 6,816,974 UDIs fo r life121, 1,704,243 UDIs for personal 
accident, medical expenses  and health, and between 5,112,730 UDIs and 8,521,217 UDIs for 
casualty insurance.122 For institutions authorized to operate exclusively as reinsurers, the minimum 
paid-in capital requirements for each transaction or line of business their authorization covers 
are 50% of the corresponding figures above (the requirements are different for rebonding).123 
4.106.   Insurance services covering risks to be incurred in Mexico must be underwritten by 
companies established in the country. The CNSF authorizes insurance policies to be underwritten by 
companies abroad only if the risk cannot be covered in Mexico. In order for insurers and mutuals to 
obtain reinsurance abroad, the reinsurance entity must be  registered in the General Registry of 
Foreign Reinsurers maintained by the CNSF. Entities considered by the CNSF to meet solvency and 
stability requirements are eligible to register.  
4.107.   The CNSF also regulates and supervises insurance brokers and authorizes them to operate 
subject to successful completion of an examination; authorizations cannot be transferred. Foreign 
nationals can operate as insurance agents in Mexico if able to prove equivalent studies abroad.124 
4.108.   As of 31  December  2021, there wer e 113 insurance and bonding companies operating in 
Mexico: 103 in insurance and 10 in bonding. Fifty -six of those companies were subsidiaries of foreign 
companies and 56 were domestically -owned. Only 17 belonged to a financial group (10 with domestic 
capital and 7 with foreign capital). Thirty -six provided life and non -life insurance, 13 were authorized 
to provide life insurance only and 64 to provide non -life only.125 Thirty -eight of the 113 companies 
were specialized companies.  
4.109.   In 2021, direct insurance pr emiums stood at approximately MXN  654,800  million 
(about  USD 31,992  million). MXN  643,000  million of that amount were for insurance 
and MXN 11,500  million were for bonds. By line of business, 38.6 % of total premiums were for life 
insurance, 16.5 % for autom obile insurance and 34.8 % for casualty insurance.126 The sector has 
 
119 Information from the CNSF. Viewed at: https://www.gob.mx/cnsf/que -hacemos . 
120 Article 7 of the Foreign Investment Law (last  amended on 10 January 2014).  
121 Within this business line, the minimum paid -in capital requirement for pension insurance 
is 28 million  UDIs.  
122 Circular 6/20 amending the Single Circular on Insurance and Bonding (Annex 6.1.2.) (Official Journal 
of 29 June 2 020). Viewed at: http://dof.gob.mx/nota_detalle.php?codigo=5595745&fecha=29/06/2020 . 
123 The minimum paid -in capital required of bonding institutions, for each line of business their 
authorization covers, including subrogation and sub -lines within each line, is fixed as follows: 
(a) one line: 7,310 .308 UDIs; (b) two lines: 9,747 .077 UDIs; and (c) three or more lines: 12,183 .846 UDIs. 
The minimum requirements for insurers  that refinance bonds but are not authorized as bonding institutions are 
fixed for each line as follows: (a) one line: 3,655 .154 UDIs; (b) two lines: 4,873 .538 UDIs; and (c) three or 
more lines: 6,091 .923 UDIs.  
124 Article 10 of the Regulations on Insurance and Bonding Agents of 2001.  
125 CNSF (2020), Panorama Analítico del Sector , December 2021. Viewed at:  
https://www.cnsf.gob. mx/cnsf/revista/SitePages/Panorama -anal%C3  per centADtico -del-Sector -(Antes -
BAS).aspx?web=1 . 
126 CSNF, Desempeño Oportuno del Sector de Seguros y Fianzas Cifras al 4o Trimestre del 2021 . Viewed 
at: https://www.gob.mx/cms/uploads/attachment/file/702570/Desempe_o_Oportuno_del_Sector_de_Seguros
_y_Fianzas_4T_2021_VF.pdf . WT/TPR/S/429 • Mexico  
 
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  been growing but the insurance penetration rate remains low.127 Insurance premiums accounted 
for 2.57% of GDP in 2021, excluding social security. Per capita spending on insurance came to 
about USD 248 in 2021. The pandemic appears to have affected the breakdown by business line 
in 2021, with a larger share for pensions and a smaller one for auto and life insurance than in 2020 
(when auto and life accounted for 43 % of the total).128 
4.110.   Another eff ect of the pandemic was a reduction in concentration rates. In December  2021, 
the top five insurers took in 41 % of total premiums compared to 44 % in September  2015. The top 
five as of September  2021 were Grupo Nacional Provincial  (12.0 %), MetLife Mexico  (9.5%), 
Seguros  BBVA Bancomer  (7.1%), AXA Seguros  (6.8%) and Quálitas  (5.3%).129 
4.4.1.3   Securities market  
4.111.   The securities market in Mexico is regulated by the CNBV. The principal law is the 
Stock  Market Law of 2005, as amended in 2019.  
4.112.   That law provides that securities must be registered on the National Securities Register  in 
order to be the subject of a public offering in Mexico. Any legal persons seeking to register their 
securities in the Register must present an application supported by their articles of a ssociation and 
annual financial statements, and a placement prospectus for the securities. For debt securities and 
residual fiduciary instruments (those that only provide entitlement to payment of the principal and 
interest from the underlying assets of th e trust) the credit risk rating at issuance, made by a 
securities rating institution, must also be presented. For endorsed or secured instruments, 
information must be provided on the guarantor as well as on the guarantees provided, their posting 
and means of execution.  
4.113.   Public offerings of securities require prior authorization from the CNBV. Although n o such 
authorization is required for the promotion, marketing or advertisement of the services or trades 
conducted by securities market intermediaries, stock markets, securities depositories, central 
counterparties for securities, price vendors, security ratings institutions and companies that manage 
systems for facilitating trading in securities, the guidelines and criteria laid down by the CNBV must 
be compli ed with. Any deals involving a public offering of securities listed on an exchange must be 
done on that exchange. The public offering abroad of securities issued in Mexico or by Mexican legal 
persons, whether directly or through trusts or similar or equiva lent structures, must be notified to 
the CNBV. Securities may be offered publicly through subscription, disposal or acquisition.  
4.114.   All government enterprises in Mexico trade on the two existing stock exchanges, regardless 
of where they are listed. The rules laid down by the CNBV provide that deals must be conducted so 
as to ensure "best execution" for investors, meaning that a securities firm will send purchase or 
sales orders to the exchange where the market conditions are better. Furthermore, in order to 
encourage market development at both exchanges as well as the best possible execution of client 
orders, the 2021 reform of the general provisions applicable to securities firms amended the 
requirement to ensure best execution and incorporated rules on the tr ansfer of liabilities.  
4.115.   Settlement is made through the Contraparte Central de Valores de México, S.A. de C.V. 
(CCV). Securities firms may direct their orders to either of the national securities exchanges. In 
August 2017 authorization was given for a second  national securities exchange in Mexico; it started 
trading in July 2018, thus Mexico now has two securities exchanges: the Mexican Stock Exchange 
(BMV) and the Institutional Stock Exchange (BIVA). Businesses have the option of listing their debt 
or equity  securities on either exchange and their securities are traded  on both. Each of the existing 
exchanges works with different financial indicators: the BMV works with the Index of Prices and 
Quotations (S&P/BMV  IPC) and BIVA with the FTSE BIVA, which include s real estate investment 
exchange -traded trusts (FIBRAS).  
 
127 The insurance penetration rate is the ratio of insurance premiums to GDP.  
128 CSNF, Panorama Analítico del Sector de Seguros y Fianzas. Se desaceleran tanto las primas como la 
siniestralidad, 3er T 2021 . Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/682290/Panorama_Anal_tico_del_Sector_3T_2021.pdf . 
129 CSNF, Panorama Analítico del Sector de Seguros y Fianzas. Se desaceleran tanto las prim as como la 
siniestralidad, 3er T 2021.  Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/682290/Panorama_Anal_tico_del_Sector_3T_2021.pd f. WT/TPR/S/429 • Mexico  
 
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  4.116.   The BMV is a public company trading under concession of the Ministry of Finance and Public 
Credit (SHCP), in compliance with the rules contained in the Stock Market Law. Shares in the BMV 
may be tra ded on the securities market; the initial public offering of the shares representing its 
capital was made  in June 2008. The BMV Group130 has formed around the BMV, comprising 
businesses providing comprehensive services to facilitat e both trading and post -trading on the 
securities and derivatives market in Mexico. In addition to the BMV, the group runs a derivatives 
exchange, a securities and OTC (over -the-counter) derivatives brokerage company, the central 
securities depository in Mexico, where the custody a nd settlement of securities is performed, a 
securities clearing house, a clearing house for derivatives, a price appraisal company and risk 
management services. At 31  December 2021, BMV had 483131 registered  issuers, not counting those 
in its International Quotation System (SIC).  
4.117.   BIVA was awarded its operating concession by the SHCP in August 2017, and opened its 
doors on 25  July 2018, supported by the Nasdaq technology platform and its chief shareholder 
Central de Corretajes , which, in addition to BIVA, own s two securities and OTC derivatives brokerage 
companies and one price appraisal company. The establishment of a new securities exchange has 
fostered greater competition between companies and has increased their participation in the stock 
market. The board  of directors of BIVA is the body with responsibility for discharging the company's 
corporate purpose. Its functions include planning, organizing, management, evaluation, oversight 
and regulatory compliance, in conformity with the requirements of the Stock  Market Law. The Board  
comprises temporary, removable directors who may be shareholders or individuals with no 
connection to BIVA; at least 25% of the directors must be independent members with professional 
experience, ability and standing. Directors must at all times discharge their duties without conflicts 
of interest and avoid any personal, financial or economic link to BIVA.132 At end -2021, BIVA had 
66 registered issuers, not counting those listed on its SIC.133 
4.118.   The Securities Exchanges are the main forum for organized securities market trading in 
Mexico. Their objective is to facilitate transactions in securities,  develop the market, and encourage 
it to expand and become more competitive. Accordingly, the Securit ies Exchanges perform the 
following functions: (a) establish mechanisms to facilitate operations between supply and demand 
of securities, credit instruments and other documents registered on the National Securities Register 
(RNV), and provide the services necessary to carry out the processes of issuing and placing those 
securities in trade; (b) maintain and publish information on the securities registered on those 
exchanges and those listed on the SIC at each exchange, on their issuers and the trading done on 
those exchanges; (c) establish the measures necessary to ensure that the operations performed by 
the securities firms are subject to the applicable provisions; (d) issue regulations laying down 
standards and schemes of operation and conduct  that promote  fair and equitable practices on the 
securities market, oversee compliance with those regulations and impose disciplinary and corrective 
measures for failure to comply.134 
4.119.   Participation on the market through the public offering and placement of securities r equires 
the services of a securities firm (stock market intermediary), who offers the securities on the primary 
market to investors among the wider public on the Securities Exchanges. Once the securities have 
be placed among investors on the stock market, they can be purchased and sold (secondary market) 
on the Securities Exchanges through a securities firm . Investors channel their orders for the 
purchase or sale of shares through a promoter from a securities firm. Promoters are registered 
specialists who h ave received training and authorization from the CNBV. The purchase or sales orders 
 
130 The companies that are part of the BMV Group are: S.D. Indeval Institución para el Depósito de 
Valores, S.A. de C.V., Contraparte Central de Valores de México S.A. de C.V., MexDer, Mercado Mexicano de 
Derivados, S.A. de C.V., and Asigna Compensación y  Liquidación, Fideicomiso No. F/30,430.  
131 Information supplied by BMV includes shares, debt, exchange -traded funds (ETFs), development 
capital certificates (CKDs), certificates of stocks in investment project ETFs (CERPIS), FIBRAS, m ortgage 
trusts, FIBRAS  E and foreign listings.  
132 Information from the BIVA. Viewed at: 
https://www.biva.mx/nosotros/acerca_de/gobierno_corporativo . 
133 The information supplied by BIVA includes shares, CPO s (ordinary share certs), UVs (units of value); 
short and long -term stock exchange certificates; stock exchange certificates of federal govern ment entities; 
CKDs; FIBRAS; multilateral financial organizations; exchange -traded funds (ETFs); and investment funds and 
foreign listings. This information does not include existing programmes under which no issues have been 
made.  
134 Information from the BMV. Viewed at: https://www.bmv.com.mx/e s/grupo -bmv/acerca -de, and 
https://www.biva.mx/nosotros/acerca_de . WT/TPR/S/429 • Mexico  
 
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  are forwarded from the securities firms to the stock market through the electronic trading systems 
of the Securities Exchanges. Once shares or debt instrume nts135 have been acquired, their 
performance can be monitored in specialist newspapers or through printed and electronic market 
systems provided by the Securities Exchanges themselves (market data), allowing real -time 
monitoring of prices on the capital market.136 
4.120.   The follo wing types of securities are traded on the Securities Exchanges: (a) common stocks, 
limited -voting stocks, preferred shares, ordinary certificates of participation representing shares, 
convertible liabilities and local warrants; (b) long - and short -term na tional debt instruments issued 
by certain Mexican governmental entities and by private companies and trust funds incorporated in 
Mexico; secondary trading occurs on OTC platforms; (c) exchange -traded funds (ETFs)137, issued by 
private trust funds incorporated in Mexico, several of which are indexed to Mexican  equity indices ; 
(d) development capital certificates (CKDs)138; (e) certificates of stocks in real estate ETFs 
(FIBRAS)139; (f) FIBRAS  E140; (g) certificates of sto cks in investment project ETFs (CERPIS)141; 
(h) warrants142; or (i) units or shares in a special purpose acquisition company (SPAC).143 
4.121.   Some securities, such as CERPIS , can be issued only through a restricted public offering 
addressed exclusively to qualified  institutional investors.144 CERPIS promote the financing of projects 
at the development stage under a flexible regulatory framework that improves how they are 
administered.  
4.122.   The Mexican stock market continues to be moderate for the size of the country's eco nomy, 
especially with regard to the number of Mexican issuers. At end -December 2021, the BMV had 
137 listed Mexican issuers of shares and 6  from other countries (excluding the securities listed on 
the SIC).145 Additionally, there were 438 listed investment funds and 117  SIEFOREs.146 Moreover 
2,657  foreign instruments were listed on the BMV SIC.147 
 
135 Debt instruments are traded through "brokers".  
136 BMV. Information viewed at: https://www.bmv.com.mx/es/productos -de-informacion/sibolsa  and 
BIVA. Information viewed at: https://www.biva.mx/informacion_de_mercado/market_data/productos_biva . 
137 ETFs are certificates of participation r epresenting equity in investment trusts placed on the BMV and 
allow the investor to purchase or sell an index or portfolio of shares as a single share.  
138 CKDs are fiduciary instruments launched by the BMV in 2009 for investment in the shares, stocks or 
finance of Mexican companies, whether directly or indirectly, through investment vehicles. They are intended 
to help channel investment resources into projects in the areas of infrastructure, real estate, mining, 
businesses generally and projects to develop t echnology. Returns are variable and are dependent on the 
outcomes of the individual projects.  
139 FIBRAS are real estate investment vehicles; their purpose is to lease or to acquire the right to 
receive the income from the lease of real estate. They were lau nched in 2010 and are issued by trusts whose 
object is to acquire or develop real estate intended for rental or to acquire the right to earn income from the 
rental of that real estate, as well as to provide finance to that end.  
140 Stock exchange certificate s for investment in companies, projects or mature assets related to energy 
or infrastructure with established flows. May be acquired by investors among the wider public.  
141 Certificates of stocks in investment project ETFs (CERPIS) first appeared in Decembe r 2015. The 
resources raised from their issuance are used to finance projects, invest in shares, stocks or the finance of 
companies, whether directly or indirectly, through one or more investment vehicles. Specialized pension fund 
investment companies (SIE FOREs) may invest in them. Decisions relating to CERPIS may be taken by the 
administrator, unlike in CKDs, where decisions are made by the Technical Committee. CERPIS may make up to 
90% of their investments abroad and must make at least 10% of the investme nts in Mexico. They must be 
issued through a restricted public offering so there is no requirement to disclose to the public any information 
about these businesses or projects being promoted that represent 10% or more of the trust's assets. 
SIEFORES may in vest up to 20% of their total assets in foreign securities and CERPIS to invest in or finance 
activities or projects outside Mexican territory.  
142 Documents that grant their holders, in exchange for payment of a share premium, the right to 
purchase from or sell to the issuer a given number of shares, or a block or basket of shares, or to receive from 
the issuer a given sum of money resulting from the change in a price index related to an exercise price for a 
given period.  
143 SPACs were launched in 2017 and co mprised an initial public offering of shares the proceeds of which 
would be used to purchase one or more companies. The money raised from the market is placed in a custody 
account abroad; until used for its intended purpose it is invested in United States government securities.  
144 A restricted public offering is one in which only institutional investors who are qualified to do so may 
participate (investors who have a minimum amount equivalent to UDIS  20 million invested in securities).  
145 Information provided  by BMV.  
146 Information provided by BMV.  
147 Information provided by BMV.  WT/TPR/S/429 • Mexico  
 
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  4.123.   At end -December 2021, the BMV capitalization value of the 171  national share issues stood 
at MXN  9.407 billion (USD  459,635 million), equivalent to 36% of GDP (annual average, current 
prices). Approximately 12.87% of listed share issues had a capitalization value higher than 
MXN 99,000  million (USD  4,900  million); 26.90% had a market capitalization value lower than 
MXN 99,000  million and higher than MXN  20,000  million (USD  990 million), while 60.23% had a 
capitalization value lower than MXN  20,000  million. Moreover, there are 5  infrastructure and 
16 real estate FIBRAS with a capitalization value of MXN  100,479  million and MXN  417,865  million 
(USD  4,909  million an d USD  20,416  million) respectively, and 2 FIBRAS  E with a capitalization value 
of MXN  29,554  million (USD  1,444  million).148 Similarly, the capitalization value of the shares that 
are part of the Index of Prices and Quotations (S&P/BMV  IPC) represented 70.3 9%149 of the total 
capitalization value of the share market at the BMV.  
4.124.   At end -December 2021 , BIVA had one  listed Mexican issuer of shares150, but 370  listed 
issuers on the SIC.151 Additionally, the capitalization value of national share issues stood at 
MXN 4,782 million (USD  233 million). It also had one listed participation certificate representing 
equity in investment ETFs with a capitalization value of MXN  2,066  million (USD  100.9  million), one 
listed infrastructure and two listed real estate FIBRAS with c apitalization values of MXN  3,178  million 
and MXN  44,148  million (USD  155 million and USD  2,157  million) respectively.  
4.125.   According to the CNBV, at end -December 2021 the 36  securities firms had assets totalling 
MXN 861,920  million and investments in securitie s amounting to MXN  682,336  million. The net 
result for the sector was MXN  6,102  million, the return on assets (RoA) averaged -1.00% and the 
return on equity (RoE) 4.28%.152 
4.4.2   Telecommunications  
4.126.   Since the previous review in 2017 there have been no substantial changes to the legal 
framework regulating the telecommunications sector. The sector is governed by several articles of 
the Mexican Constitution153 and by the Federal Telecommunications and Broadcasting Law (LFTR) of 
2014.154 The Federal Telecommunications In stitute (IFT), an autonomous constitutional body, 
continues to be the regulator for the sector ( Section  2.1). The IFT is also the authority responsible 
for enforcing the competition rules in the sector (and in broadcasting) and for issuing "technical 
provisions" for the sector ( Section  3). 
4.127.   The aim of Mexico's telecommunications policy is to widen access and use of broadband to 
promote digital inclusion, technological development and the digital economy (Box  4.3).155 In 2021, 
Mexico issued a National Digital Strategy (EDN) 2021 -24 to quicken the pace of the digital transition 
of government services ( e-government). Telecommunications are regarded as a public service of 
general interest.156 As a result of the pandemic they were declared an "essential service" in 2020.157 
4.128.   In order to improve digital inclusion, in 2018 Mexico rolled out the Red Compartida ["Shared 
Network"], a wholesale public -private network the aim of which is to increase service coverage in 
areas that are not commercially viable for operators.158 Additionally, since 2019 a new operator, 
 
148 Mexican Stock Exchange (BMV), Informe Anual Integrado 2020 . Information viewed at: 
https://www.bmv.com.mx/docs -pub/informeAnual/Informe%20Anual%20Integrado_2020.pdf . 
149 Information provided by BMV.  
150 Information provided by BIVA.  
151 Information provided by BIVA.  
152 Press release No.  88, Information from the securities firms sector at end -June 2021, 
of 7 September  2021.  
153 Articles  6, 7, 27, 28, 73, 78, 94 and 105 of the Mexican Constitution.  
154 Federal Telecommunications and Broadcastin g Law (Official Journal  of 14 July 2014, as last amended 
on 20  May 2021).  
155 Sectoral  Programme for  Communications and Transport (2020 -24). 
156 Article  6.B.II of the Constitution and Article  2 of the LFTR.  
157 GSMA (2020), The Mobile Economy Latin America 2020 . Viewed at: 
https://www.gsma.com/mobileeconomy/wp -
content/uploads/2020/12/GSMA_MobileEconomy2020_LATAM_Eng.pdf . 
158 In 2017 the concession to c onstruct and operate Red Compartida was awarded to the Mexican 
operator Altán Redes. The State gave Altán Redes exclusive use of the spectrum range required to operate the 
network. Service providers take out contracts for the wholesale service with Altán R edes (Digital Regulation 
Platform ITU/The World Bank). Information viewed at: https://digitalregulation.org/red -compartida -mexico ; WT/TPR/S/429 • Mexico  
 
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  CFE Telecomunicaciones e Internet para Todos  (a subsidiary of the CFE), has provided broadband 
services in rural areas on a not -for-profit basis through free -of-charge access points in squares, 
schools and other community centres. CFE Telecomunicaciones e Internet para Todos provides a 
retail service. However, despite efforts to reduce the digital gap, according to the National Household 
Survey on the Availability and Use of Information Technology (ENDUT IH) in 2020 only 50.4% of the 
rural population used the internet, compared to 78.3% in urban areas.159 
Box 4.3 Electronic commerce in Mexico  
During the period 2013 -17 the share of electronic commerce (e-commerce) in Mexico's GDP rose from 3% to 
4.6%. That rise has continued since 2017, gaining headway in 2020 as a result of the pandemic and the 
changes it provoked in business models, patterns of production and demand.  
 
 2017 2018 2019 2020a 
Share of e-commerce in GDP (%)  4.6 4.9 5.8 5.8 
Retail trade  1.1 1.4 2.2 2.4 
Wholesale trade  1.3 1.3 1.3 1.5 
Other servicesb  2.2 2.3 2.3 2.0 
a Preliminary data.  
b For example financial and insurance, education, cultural, health or tourism services.  
According to the “Review of online sales in Mexico” published in 2021 by the Mexican Association for Online 
Sales (AMVO), the value of electronic transactions grew by 81% in 2020, generating MXN  316 billion. However 
despite the rise, that sum amounted to o nly 9% of the total value of retail sales.  
In 2021 the AMVO also published a “Review of online sales in SMEs” in which it examined how 450  SMEs do 
business and how they have incorporated e -commerce into their management and production models. It 
found tha t e-commerce was used by 58% of the SMEs interviewed and that it had become essential to 
increasing competitiveness, promoting digitization and growing the customer base. However, the SMEs noted 
that e -commerce still posed logistical challenges, including in relation to transport costs and delivery times.  
Since 1  June 2020 a number of digital services supplied by providers established abroad have been liable to 
VAT (16%) in Mexico. The authorities indicated that in 2021 this yielded MXN  8,838  million.  
Note: Source for the box: SHCP Economic Gazette. Information viewed at: 
https://www.gob.mx/shcp/gacetaeconomica/articulos/en -2019-6-0-del-pib-provino -del-comercio -
electronico ; and information provided by the authorities . 
Source:  WTO Secretariat and data provided by the authorities.  
4.129.   In 2021 Mexico had 123.9  million mobile telephone lines; penetration has risen since 2017 
and is close to 100% (Chart  4.3). In 2020 the pandemic sparked a rise in demand for fixed 
broadband to enable people to conduct their lives remotely; penetration reached 64% in 2020 and 
continued to rise in 2021 (Chart  4.3). 
4.130.   Telecommunications services are provided subjec t to a sole concession for commercial use 
(30 years, renewable) awarded by the IFT; the concession allows the holder to provide services of 
all kinds (including broadcasting). The IFT also awards authorizations (10  years, renewable) for 
mobile virtual oper ators (MVO) in the mobile telecommunications market. Between 2017 and 2022 
the development of the Red Compartida encouraged various MVOs to enter the market. Mexico is 
the third  largest market in the region for MVOs.160 All operators (fixed -line and mobile)  offer 
portability.  
 
and OpenSignal (2021), Mexico: Mobile Network Experience Report 2021 . Information viewed at: 
https://www.opensignal.com/reports/2021/04/mexico/mobile -network -experience . 
159 IFT press release  No. 252/21 of 22  June 2021.  
160 IFT (2020), Análisis sobre el Mercado de Operadores Móviles Virtuales (OMVs) 2020 . Information 
viewed at: http://www.ift.org.mx/sites/default/fil es/contenidogeneral/estadisticas/omvs2020.pdf . WT/TPR/S/429 • Mexico  
 
- 154 - 
 
  Chart 4.3 Telecommunications indicators, 2017 -21 
 
Source:  IFT. Information viewed at http://www.ift.org.mx/secciones/estad %C3%ADsticas  and 
http://www.ift.org.mx/sites/default/files/nota_tecnica_tercer_trimestre.pd ; and data provided by 
the authorities.  
4.131.   América Móvil continues to be the largest provider of telephony and internet services 
(Chart  4.4) and the dominant economic operator (AEP) in the telecommunications sector. According 
to the LFTR, an AEP is an operator whose aggregate market share (telephony  + internet) is greater 
than 50%, as measured on the basis of the following criteria: number of users, subscriptions, traffic 
carried on the network and network capacity.161 Consequently , América Móvil's operations are still 
subject to asymmetric regulatory me asures that the IFT issues in order to level the playing field for 
all operators.162 Every two years the IFT evaluates the effectiveness of the regulations and may 
amend or introduce measures, or indeed abolish measures , if it takes the view that barriers t o 
competition have disappeared. The most recent evaluations took place in 2017 and 2020.163 
Following the evaluation in 2020 it was decided that the IFT would identify specific geographical 
areas where the wholesale service tariffs for indirect access to th e local loop would not be regulated. 
As a result, in 2021 the regulations governing the tariffs were abolished in 52  municipalities.164 
 
161 Articles  262, 263 and 265 of the LFTR.  
162 Asymmetric regulatory measures can take the form of tariff regulations or other requirements such 
as allowing access to essential inputs (e.g.  infrastructure) or unbl ocking mobile terminals procured by clients.  
163 In 2017 the IFT issued an asymmetric regulatory measure ordering the functional separation of 
Telmex and Telnor.  
164 Information provided by the authorities.  
114.3120.2122.0 122.9123.9
20.021.022.023.9 24.693 97 97 98 98 
59 61 63 68 70 
020406080100120140
020406080100120140
2017 2018 2019 2020 2021
Penetration (%)Lines (million)Telephony
Mobile telephone lines
Fixed telephone lines
Mobile telephone lines per 100 households
Fixed telephone lines per 100 households81.188.397.4101.4104.5
17.018.419.423.5 23.566.071.078.080.083.0
50.053.055.064.067.0
020406080100120140
020406080100120
2017 2018 2019 2020 2021
Penetration (%)Lines (million)Internet
Lines with access to mobile broadband
Lines with access to fixed broadband
Lines with access to mobile broadband per 100 households
Lines with access to fixed broadband per 100 householdsWT/TPR/S/429 • Mexico  
 
- 155 - 
 
  Chart 4.4 Share in the telecommunications market, 2017 -21 Q3 
 
Source:  Data supplied by the IFT. Information viewed at: https://bit.ift.org.mx/BitWebApp ; and data supplied 
by the authorities.  
4.132.   Competition in fixed telephony and fixed broadband rose during the review period followi ng 
the introduction of the asymmetric regulatory measures, and is reflected both in the fall in 
América  Móvil's market share and in the degree of concentration as measured by the 
Herfindahl -Hirschman Index (HHI) (Charts  4.4 and 4.5). Measures to promote co mpetition in the 
mobile market have generally been unsuccessful. In any event, despite the increased competition, 
each segment of the market in Mexico is still highly concentrated as the HHI in all markets is over 
2,500  points (Chart  4.5). 
Chart 4.5 Degree of concentration in the telecommunications market, 2017 -21 
 
Note:  HHI <  1,500  points: unconcentrated market; HHI 1,500 -2,500  points: moderately concentrated 
market; HHI >  2,500  points: highly concentrated market. 2017 –20: information to December. 
2021:  information to June for fixed services and to September for mobile services.  
Source:  Data supplied by the IFT. Information viewed at: https://bit .ift.org.mx/BitWebApp ; and information 
provided by the authorities . 
4.133.   The commercial use of the frequency bands in the spectrum requires a concession for which 
the IFT invites and awards bids for a (renewable) period of 20  years. Generally speaking , the band s 
put out to tender are for the provision of a service nationwide but in some cases a bid may be invited 
for services in a particular region or area. All operators may take part in the calls for tender, except 
64.362.5 62.4 62.5 63.470.7 70.7 69.8 71.0 69.721.421.2 20.6 20.3 18.612.5 11.710.910.49.913.014.8 15.3 15.1 15.415.1 15.617.1 16.117.61.3 1.5 1.7 1.9 2.4 1.8 2.0 2.1 2.5 2.9
2017 2018 2019 2020 2021T3 2017 2018 2019 2020 2021T3(% of lines)Mobile telephone                          Fixed telephone 
América Móvil Telefónica AT&T MVO60.357.8
53.3
47.544.554.552.450.1
44.542.717.119.2
23.1
24.2
24.622.223.024.3
26.526.38.7 10.1 11.2
12.6
13.115.516.016.0
15.6
14.84.35.67.411.312.94.9 6.5 8.1
11.313.69.67.35.1 4.3 4.92.9 2.0 1.5 2.1 2.5
2017 2018 2019 2020 2021T3 2017 2018 2019 2020 2021T3(% of lines)Fixed telephone Fixed broadband
América Móvil Groupo Televisa MCM Totalplay Other
0 1,000 2,000 3,000 4,000 5,000 6,000Fixed telephonyFixed broadbandMobile telephonyMobile broadband
2017 2018 2019 2020 2021(Points)WT/TPR/S/429 • Mexico  
 
- 156 - 
 
  the AEP, wh ich requires authorization from the  IFT.165 When operators are awarded (or renew) a 
concession they pay a consideration in an amount set by the IFT, having heard the opinion of the 
SCHP.166 Concession -holders also pay annual fees laid down by Congress in line with a proposal from 
the SHCP.167 According to the IFT, the cost of using the spectrum in Mexico is high: the annual fees 
account for 80% of the total cost. In 2021 Congress raised the a nnual fees for various frequency 
bands and introduced annual fees for bands that had previously been exempt. The IFT is of the view 
that this rise could hamper investment, disincentivize current operators from participating in calls 
for tenders and create barriers to entry for new participants, which could have repercussions for the 
tariffs charged to end users and speed up the spectrum relinquishment that began in 2019.168 The 
authorities indicate that spectrum relinquishment could result in an annual loss of revenue of 
MXN 4.5 billion. In 2021 the IFT invited tenders for frequency blocks but a number of them failed to 
attract bidders; as a result the Institute proposed that the amount of the annual fees should be 
changed.169 
4.134.   During the review period, the mai n change involving network interconnections was the 
withdrawal of the "zero fee", an asymmetric regulatory measure that the IFT had imposed on 
América Móvil, preventing the company from charging termination fees to its competitors. The 
"zero fee" was withd rawn on 1  January 2018 for mobile services and on 1  January 2019 for fixed 
services. Since then América Móvil has been allowed to charge termination fees that are regulated 
by the IFT.170 The remaining operators are free to agree the conditions for interconnecting their 
networks, including fees. In the event that no agreement can be reached, the IFT may determine 
those conditions.171 
4.135.   The IFT sets price caps only for the fixed service provid ed by the AEP; the AEP must adopt 
those caps.172 
4.136.   Retail tariffs are liable to VAT (16%) and IEPS (3%); services providing internet access via 
the fixed or mobile networks are exempt from IEPS, as they were in 2017.173 In 2020, in response 
to customer needs d uring the pandemic, some operators introduced plans with preferential rates.174 
All operators undertook not to suspend their services for non -payment.  
4.4.3   Transport  
4.137.   Mexico is setting out to create a sustainable, competitive and multimodal transport system 
with a view to reducing costs and improving and increasing connectivity with production and 
consumption centres. The aim is to revive local economies and integrate economically and socially 
isolated and marginalized communities and areas.175 One of the main proj ects in this sector is the 
creation of a multimodal interocean corridor on the isthmus of Tehuantepec. This project involves 
 
165 Article  277 of the LFTR; and Aetha (2018), Estudio sobre la valuación y determinación de derechos 
para bandas IMT en México , Report for the IFT, Mexico. Viewed at: 
http://www.ift.org.mx/sites/default/files/contenidogeneral/espectro -radioelectrico/07 -informeaethaparaift -
preciosespectroimt20dic2018v21pdftestado.pdf . 
166 The amount of the consideration depends on the type of use (commercial, privat e, or public and 
social) made of the spectrum and is published in the Federal  Law on Duty.  
167 The amount of the annual duties is based on the megahertz (MHz) frequencies involved and on 
geographical area; it is published in the Federal  Law on Duty.  
168 The operators AT&T and Telefónica have relinquished some frequency bands. Telefónica relinquished 
all the bands it had been awarded; in order to be able to continue to provide a service it has entered into a 
leasing agreement, approved by the IFT, to use AT&T's bands (IFT press release 71/2020 of 1  October  2020. 
The press releases can be viewed at: http://www.ift.org.mx/comunicacion -y-medios/comunicados -ift). 
169 IFT press releases 0 7/2021 and 093/2021 of 25  January 2021 and 26  October 2021 respectively.  
170 By way of illustration, see the Decision in which the Plenary meeting of the IFT lays down the 
minimum technical conditions governing interconnections between concession holders ope rating public 
telecommunications networks and sets interconnection fees using the methodology for calculating the 
interconnection costs that will be in force from 1  January to 31  December 2022 (Official Journal of 
5 November  2021).  
171 Articles  126 and 131(a ) of the LFTR.  
172 Information provided by the authorities.  
173 Article  2.III(c) and Article  8.IV(d) of the Law on the IEPS (Official Journal of 30  December  1980, as 
last amended on 12  November  2021).  
174 Navarro  I. (2021), Competition institutions in Mexico in relation to COVID ‐19 and the economic 
recovery , ECLAC. Viewed at: https://repositorio.cepal.org/bitstream/handle/11362/46660/1/S2100017_en.pdf ; 
and IFT press relea se No.  037/2020 of 19  April 2020.  
175 Sectoral Programme for Communications and Transport 2020 -24. WT/TPR/S/429 • Mexico  
 
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  work to restore, modernize and extend the rail and road networks, as well as the region's ports, 
including work to develop speciali zed terminals for containers.176 Plans are also in place to set up 
industrial parks ("development hubs"), which will offer incentives to logistics, agro -industry, 
manufacturing, energy and services investment projects, with a view to transforming the area i nto 
a distribution hub for the domestic market and for re -exports.177 Through this project, Mexico is 
attempting to establish itself as a new competitor in the region, by using the location of the isthmus 
to offer a new route between Asia and the east coast  of the United States. According to the 
authorities, 51% of the project has been government -funded.  
4.138.   Road transport is the most used method for imports and exports. Before the pandemic, 
in 2019, road transport accounted for 62% of the value of freight expor ted by Mexico and 48% of 
the value of imports.178 However, road transport has become less competitive owing to the state of 
the road network, poor road safety, fuel prices and poor connectivity with other transport 
networks.179 Another issue is the condition  of freight vehicles, which has had a knock -on effect on 
costs and travel times.180 
4.139.   Domestic land transportation services for freight, passengers and tourists are still reserved 
exclusively for Mexicans ( Section 2.4). Foreigners cannot provide these service s or participate 
directly or indirectly as partners or shareholders in Mexican companies providing these services. 
Foreigners based in Mexico can provide courier and parcel delivery services, though this is not 
actually the case at present. In order to pro vide these services, both Mexican nationals and 
foreigners require a permit from the Ministry of Infrastructure, Communications and Transport 
(SICT).181 
4.140.   Companies based in Mexico, even where there is a foreign majority shareholder, may provide 
international  transport services. International transport is governed by international agreements 
signed by Mexico182; Mexico has agreements containing provisions on road transport with Canada, 
the United States and Guatemala.183 Cabotage is not permitted for land transp ort. 
4.141.   For international goods transport, the rail system is used for importing agricultural products 
(maize, in particular) and containerized freight, and for exporting cars and beer.184 According to the  
Sectoral  Programme for  Communications and Transport 2020 -24, Mexico wishes to promote the use 
of trains to reduce economic and environmental costs. Foreign equity in rail services and 
infrastructure (for general rail system infrastructure) is still limited to 49%, but foreigner s may 
increase their equity to as much as 100% if they obtain approval from the National Foreign 
Investment Commission (CNIE) ( Section 2.4); according to the authorities, the CNIE has authorized 
FDI exceeding 49% in construction projects only. Rates for ra il transport of goods are not regulated. 
However, in 2020, COFECE determined that there was a lack of effective competition in the transport 
of chemicals on 20 routes in the state of Veracruz. Therefore, in 2020, the Rail Transport Regulatory 
 
176 The project also includes the construction of a gas supply pipeline for the region and the 
development of fibre optic networks in order to improve digital co nnectivity.  
177 Chamber of Deputies. Viewed at: http://www5.diputados.gob.mx/index.php/camara/Centros -de-
Estudio/CESOP/Eventos -y-Presentaciones/XXIX -Seminario -de-Economia -Urbana -y-Regional -2019. -Estrategias -
publicas -urbano -regionales -para-Mexico -en-la-Cuarta -TransformacionS/El -Proyecto -del-Corredor -Multimodal -
Interoceanico -del-Istmo -de-Tehuantepec -aspectos -legales -e-impactos -sociales ; and PowerPoint presentation  
by the Mexican Chamber for the Construction Industry. Viewed at: 
https://www.cmic.org.mx/cmic/eventos/infraestructura2030/assets/prese ntacion -jesus-rodriguez -socorro.pdf . 
178 SCT/Mexican Institute for Transport (IMT) (2019 ), Planeación estratégica y logística del 
autotransporte de carga . Viewed at: https://imt.mx/archivos/Publicaciones/PublicacionTecnica/pt565.pdf . 
179 Sectoral  Programme for  Communications and Transport 2020 -24. 
180 CANACAR (2021), Boletín Económico del Autotransporte de Carga , No. 14, April. Viewed at: 
https://canacar.com.mx/servicios/estadistica/boletin -economico . 
181 Article 28 of the Law on roads, bridges and federal road tr ansport (Official Journal of 22 December 
1993), as last amended on 1 December 2020.  
182 Articles 59 and 61 of the Law on roads, bridges and federal road transport.  
183 SCT. Viewed  at: https://www.sct.gob.mx/transporte -y-medicina -preventiva/autotransporte -
federal/temas -internacionales . 
184 ARTF (2020), Anuario Estadístico Ferroviario 2019 . Viewed at: 
https://www.gob.mx/cms/uploads/attachment/file/574090/Anuario_Estadi_stico_Ferroviario_2019__2_.pdf . WT/TPR/S/429 • Mexico  
 
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  Agency (ARTF)  began to regulate the rates of operators providing the service on the named routes; 
this measure is still in force.185 
4.4.3.1   Air transport  
4.142.   Since the most recent Mexico review in 2017, the main change in the air transport sector 
has been the creation of a new aviation authority to regulate the sector. In 2019, the Federal Civil 
Aviation Agency (AFAC) was created, which replaced the Directorate -General of Civil Aviation 
(DGAC) and assumed its functions in 2021.186 AFAC is a decentralized body of the Ministry of 
Infrastructure, Communications and Transport (SICT) which has technical, operational and 
administrative autonomy; the DGAC was under the SICT and so it was not an independent body.187 
4.143.   The Civil Aviation Law of 1995188, the Airports Law of 1995189 and their res pective 
implementing Regulations regulate air transport in Mexico, and have not change substantially 
since 2017. International air services are regulated by air service agreements. However, if there is 
no agreement in place, the services are provided in ac cordance with the principle of reciprocity.190 
4.144.   Mexico has signed 55 airline service agreements. Since 2017, Mexico has signed agreements 
with Curaçao, Spain, the Philippines, Finland, Iceland, Israel and the Netherlands; and has revised 
its agreements with Germany, Canada and El Salvador (Table A4.1). By signing and revising  these 
agreements, Mexico is setting out to increase the openness of airline services in order to increase 
connectivity and therefore boost tourism. Mexico generally does not grant fifth freedom rights. 
However, under some of the agreements, these rights may be granted provided that an airline 
requests them and the aviation authority for each party agrees. Cabotage is not permitted. However, 
under the Civil Aviation Law, private cabotage f lights are permitted.191 
4.145.   Mexico restricts foreign equity in Mexican airlines which provide international services. 
51% of the equity must be Mexican -owned. The FDI cap for companies operating flights solely in 
Mexico was increased from 25% to 49% in 2017 ( Section 2.4). According to the authorities, this has 
had a positive effect on FDI and has contributed towards modernizing the air fleet.  
4.146.   Foreign airlines require a permit issued by AFAC to provide international services, and 
Mexican airlines require a conce ssion (scheduled flights) or a permit (non -scheduled flights).192 Rates 
for international services are registered with AFAC and, in some cases, must also be approved.  
4.147.   Air traffic management and air navigation assistance services are still being provided by the 
Mexican Air Space Navigation Services (SENEAM), a government agency. Mexico still restricts foreign 
equity participation in airports. Foreign investment generally may not exceed 49% of the equity of 
concessionaire companies. However, if they obtain app roval from the CNIE, foreigners may exceed  
this cap and invest as much as 100% ( Section 2.4). This situation currently does not apply, as the 
three airport groups operating in Mexico are majority Mexican -owned.  
4.148.   Mexico has 78 airports, including 65 which serve international passengers; Felipe Ángeles 
International Airport was opened in 2022. Just like in 2017, the airports are operated by three private 
airport groups (all Mexican -owned) and by public entities. These are Airports and Auxiliary Services 
 
185 ARTF. Viewed at: https://www.gob.mx/artf/articulos/resoluciones -en-materia -de-regulacion -
tarifaria?idiom=es ; COFECE. Viewed at: https://www.cofece.mx/declaratoria -de-falta-de-competencia -en-
transporte -ferroviario ; and information provided by the authorities.  
186 Decree creating the Federal Civil Aviation Agency, an autonomous administrative a gency of the 
Ministry of Communications and Transport (SCT) (Official Journal  of 16 October 2019); the Civil Aviation Law, 
as amended through the Decree published in the Official Journal of 20 May 2021.  
187 Information provided by the authorities.  
188 Civil Av iation Law  published in the Official Journal of 12 May 1995, last amendment published in the 
Official Journal of 20 May 2021); Regulations implementing the Civil Aviation Law published in the Official 
Journal of 7 December 1998, last amendment published in  the Official Journal of 29 June 2020.  
189 Airports Law  published in the Official Journal of 22 December 1995, last amendment published in the 
Official Journal of 20 May 2021; Regulations implementing the Airports Law published in the Official Journal of 
17 February 2000, last amendment published in the Official Journal of 21 June 2018.  
190 Article 20 of the Civil Aviation Law.  
191 Article 17 bis of the Civil Aviation Law added through the Decree published in the Official Journal of 
20 May 2021.  
192 Articles 9 and 1 1 of the Civil Aviation Law.  WT/TPR/S/429 • Mexico  
 
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  (ASA),  Mexico City International Airport (AICM), both semi -public, and, since 2020, the Felipe 
Ángeles International Airport (AIFA) group, which was formed to operate Felipe Ángeles 
International Airport193. The AICM operates Mexico City International Airport (CD MX), the country's 
largest airport.  
4.149.   In addition to the AICM and AIFA, two other State -owned companies operate in the airport 
sector: Servicios Aeroportuarios de la Ciudad de México (SACM) and Grupo Aeroportuario de la 
Ciudad de México (GACM). The SACM prov ides all types of administrative services to the AICM and 
GACM. The GACM was also responsible for building the new CDMX international airport (NAICM), a 
project started in 2014 but abandoned in 2019, when 30% of the works had been completed.194 
Instead, the  Santa Lucía military base was converted into Felipe Ángeles International Airport in 
2019. As a result of the construction of the NAICM being abandoned, government expenditure in 
airport infrastructure fell from MXN 29,503 million in 2018 to MXN 2,096 mil lion in 2019 and 
MXN 657 million in 2020.195 Mexico City International Airport and Toluca International Airport, along 
with Felipe Ángeles International Airport, make up the Metropolitan Airport System (SAM).  
4.150.   Airport operators must provide airport services or, failing this, procure these services from 
third parties; should these services be procured, the contracts must be approved by AFAC.196 The 
rates for services in airports managed by private -sector concessionaires are still regulated. For each 
service, the SICT determines a maximum rate per traffic unit (equivalent to 1 passenger or 100 kg 
of freight), based on the concessionaire's investm ent plan; the rates may be adjusted after taking 
into account the annual efficiency targets achieved by the concessionaire and inflation. Airport 
departure tax (ADT) paid by all passengers is one of the regulated charges. Revenues generated by 
the ADT acco unt for more than half of airports' total revenues, meaning that they are an important 
resource for concessionaires. ASA, the AICM and AIFA are still setting the rates for all the airports 
that they operate, but these rates must be approved by the Ministry  of Finance and Public Credit 
(SHCP) and registered with AFAC.197 
4.151.   Until 2018, ASA was the only provider of aviation fuel storage, distribution and supply 
services. Mexico liberalized this market in 2018.198 However, FDI may not exceed 49% of the capital 
of companies that supply fuel ( Section 2.4). In order to help open up the market, ASA allowed new 
entrants to contract out the available capacity in their storage infrastructure during a transition 
period (from 2018 to 2019).199 A permit from the Energy Regulat ory Commission (CRE) is required 
to supply aviation fuel.200 The authorities have stated that ASA is still the main supplier.  
4.152.   Airlines may provide ground handling services for themselves or procure them from another 
company, which may be another airline. A permit from AFAC is required in order to provide these 
services.  
4.153.   In 2020 -21, in response to the pandemic, the authorities stated that airlines had the same 
business terms (volume discounts) and could extend the payment term for fuel from 30 to 60 days.  
 
193 Resolution authorizing the incorporation of Aeropuerto Internacional Felipe Ángeles, S.A. de C.V. , a 
majority State -owned company, which will be grouped in the sector coordinated by the Ministry of Defence 
(Official Journal of 14 December 2020).  
194 GACM. Viewed at: http://www.gacm.gob.mx ; the Spanish Institute for Foreign Trade (ICEX) (2020), 
Guía de Negocio: México ; and ECLAC (2019), "Airport infrastructure in Latin American and  the Caribbean", 
Bulletin 370. Viewed at: https://repositorio.cepal.org/bitstream/handle/11362/44901/S1900357_en.pdf . 
195 SCT statistics. Viewed at: https://www.sct.gob.mx/planeacion/estadistica/principales -estadisticas -
del-sector . 
196 Article 48 of the Airports Law and Article 67 of the Regulations implementing the Airports  Law. 
197 Information provided by the authorities; Articles 48 and 67 -70 of the Airports Law; SCT. Viewed at: 
https://www.sct.gob.mx/fileadmin/DireccionesGrales/DGAC/00 -aeronautica/regulacion -economica -de-
aeropuertos -esquema -de-tarifas -maximas -competencia -e-infraestructura/01 -regulacion -economica -de-
aeropuertos -25oct10 -vf.pdf ; and COFECE. Viewed at: 
https://www.cofece.mx/cfcresoluciones/Docs/Mercados%20Regulados/V2/7/1382537.pdf . 
198 Transitional Article 9 of the Regulations  implementing the Airports Law repealed by the Decree 
published in the Official Journal of 21 June 2018.  
199 CRE Resolutions RES/1704/2018 and RES/1075/2018; ASA press release No. 099/2018. Viewed at: 
https://www.gob.mx/asa/prensa/asa -garantiza -la-apertura -de-sus-instalaciones -para-el-almacenamiento -de-
combustibles -de-aviacion -170862?idiom=es . 
200 Article 76 of the Hydrocarbons Law (Official Journal of 11 August 2014), as last amended on 
20 May 2021.  WT/TPR/S/429 • Mexico  
 
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  4.154.   Between 2017 and 2019, the number of international passengers arriving in Mexico 
increased from 44.4 million to 47.9 million; in 2020, this number fell by 58.5% owing to the 
pandemic. In 2021, air traffic began to pick up again, but was still below p re-pandemic levels 
(Table  4.16). From 2021, air traffic has also suffered as a result of the United States' decision to 
downgrade Mexico's air safety standards rating; this has restricted air traffic between Mexico and 
the United  States, which is Mexico's main market.201 
Table 4.16 International traffic indicators, 2017 -21 
 2017  2018  2019  2020  2021  
Passengers (thousands)  44,420  46,871  47,892  19,842  35,641  
Cargo (thousands of tonnes)  628 700 649 547 684 
Source:  SICT statistics. Viewed at: http://www.sct.gob.mx/planeacion/estadistica/principales -estadisticas -
del-sector ; information provided by the authorities . 
4.4.3.2   Maritime transport  
4.155.   Since the previous Mexico review in 2017, the main changes in the maritime and port sector 
have been institutional. In 2021, the Ministry of the Navy (SEMAR) replaced the Ministry of 
Infrastructure, Communications and Transport (SICT) a nd assumed its role of managing and 
regulating the sector. As a result of this change, SEMAR has been the national maritime and port 
authority since 2021. The General Coordinating Office for Ports and the Merchant Marine (CGPMM), 
which was an agency of the  SICT, was transferred to SEMAR. The CGPMM is made up of the 
Directorate -General of Development and Ports Administration, the Directorate -General of Ports 
(DGP) and the Directorate -General of the Merchant Marine (DGMM).202 
4.156.   Maritime transport is governed by the Shipping and Maritime Trade  Law of 2006, the Ports 
Law of 1993 and their respective implementing Regulations.203 In 2021, the new Regulations 
implementing the Ports Law were published, repealing the implementing Regulations of 1994, 
particularly in orde r to reflect the institutional changes that have occurred in the sector, according 
to the authorities.  
4.157.   International (high -seas) services are provided in accordance with the principle of 
reciprocity. No authorization of any kind is required. Foreign shippi ng companies must be 
represented by a shipping agent (consignee agent) at each Mexican port where they operate; the 
DGMM approves and registers shipping agents.204 51% of the capital of shipping companies based 
in Mexico which provide international (high -seas) services must be Mexican -owned. However, 
foreigners may increase their equity participation to as much as 100%, subject to prior agreement 
from the National Foreign Investment Commission (CNIE) ( Section 2.4).  
4.158.   The transport of goods and persons in water s under Mexican jurisdiction and cabotage 
services must be provided by shipping companies under Mexican control (51% of equity) and in 
Mexican vessels ( Section 2.4). For cabotage, if there are no Mexican shipping companies or vessels, 
or if these shipping companies or vessels cannot provide the service, the DGMM may authorize 
foreign shipping companies and/or vessels to do so. In such cases, the DGMM issues a temporary 
navigation  permit, which initially lasts three months, but can be renewed for up to two y ears. At the  
end of the two years, the foreign vessel must be registered in Mexico in order to be able to continue 
providing the cabotage service.205 "Unusually specialized" foreign vessels206 are exempt from this 
 
201 FAA press release of 25 May 2021. Viewed at: https://www.faa.gov/newsroom/federal -aviation -
administration -announces -results -mexicos -safety -assessment?newsId=26142 . 
202 SEMAR press release No. 042/2021 of 7 June 2021.  
203 Shipping and Maritime Trade Law of 2006 (Official Journal of 1 June 2006), as last amended on 
7 December 2020; Regulations implementing the Shipping and Maritime Trade Law (Official Journal of 
4 March  2015); Ports Law (Official Journal of 19 July 1993), as last amended on 7 December 2020; and 
Regulations implementing the Ports Law (Official Journal of 16 December 2021).  
204 Article 24 of the Shipping  and Maritime Trade Law. https://www.gob.mx/semar/prensa/sct -efectua -
traspaso -de-la-coordinacion -general -de-puertos -y-marina -mercante -a-semar . 
205 According to information supplied by the authorities, 633 temporary permits were granted between 
2017 and 2021, mostly to foreign vessels operated by Mexican shipping companies. One foreign vessel was 
authorized to provide cabotage services. Two foreign vessels were registered in Mexico.  
206 These vessels have specific technological characteristics or are used to undertake specific activities 
(Article 10 of the Shipping and Maritime Trade Law).  WT/TPR/S/429 • Mexico  
 
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  registration requirement, meaning that they can provide the cabotage service indefinitely and that 
the temporary navigation permit  can be renewed as many times as necessary.207 In 2022, 
nine "unusually specialized" foreign vessels are providing a cabotage service to transport persons 
and equipment to  Pemex oil rigs, for example.208 
4.159.   According to the Shipping and Maritime Trade Law (Articles 8 and 39), only if COFECE 
determines that there are no conditions for effective competition  on a relevant market may SEMAR: 
(i) establish the bases for regulating rates209; and (ii) partially or fully book specific international 
freight transport for Mexican company owners or shipping companies with Mexican vessels to provide 
this service. This b ooking can only continue to be held as long as there is a lack of effective 
competition on the market in question. There were no freight transport bookings during the review 
period.  
4.160.   According to the authorities, foreign vessels operate the majority of Mexi co's international 
traffic. In order to promote the development and participation of the Mexican merchant marine, 
Mexico is still providing support to the naval industry and Mexican shipping companies through the 
National Merchant Marine Development Fund ( FONDEMAR).210 This support is provided in the form 
of bank guarantees covering up to 50% of the amount of credit acquired up to a maximum of 
USD 5 million; amounts above this limit may be secured if approved by the DGMM. During the review 
period, FONDEMAR r esources were not used.  
4.161.   Mexico has limitations in place regarding t he nationality of staff working on board vessels 
under the Mexican flag. Therefore, the entire crew on board Mexican vessels must be Mexican 
nationals.211 
4.162.   Ports are inalienable, imprescriptible and unattachable vis-à-vis the State.212 They are 
operated by the  National Port System Administrations (ASIPONA s) and the Integrated Port 
Administrations (API s). ASIPONAs and APIs may be public or private entities. For eign equity in an 
ASIPONA/API is still limited to 49% of its capital ( Section 2.4). Private equity has historically been 
very limited. Until 2021, the port of Acapulco was managed and operated by a private API, but, 
in 2021, the concession was not renewed and management of the port reverted to the State.213 
In 2022, all ports are operated by public ASIPONAs/APIs.  
4.163.   ASIPONAs/APIs must build and maintain the basic infrastructure, build and operate the 
terminals, and provide port services.214 However, works and se rvices may be contracted out. This 
process is subject to federal laws regulating government procurement. In addition, under the Ports 
Law, service contracts must be tendered. However, they may be awarded directly for technical, 
efficiency and security reas ons.215  
4.164.   Mexico has an FDI cap (49%) in place for companies providing pilotage, towing, mooring or 
lighterage services, or which engage in supplying maritime fuel (bunker). However, if they obtain 
approval from the CNIE, foreigners may increase their equity (to as much as 100%) in towing, 
mooring or lighterage services ( Section 2.4). According to the authorities, between 2017 and 2022, 
 
207 Articles 40 -41 of the Shipping and Maritime Trade Law.  
208 CGPMM. Viewed at: https://www.gob.mx/puertosymarinamercante/acciones -y-programas/estatus -
de-los-permiso s-temporales -para-la-navegacion -de-cabotaje -a-embarcaciones -extranjeras . 
209 In 2021, COFECE determined that the cabotage service for passengers (ferry service) on routes in 
the state of Quintana Roo was not being provided under conditions for effective comp etition. Therefore, in 
2022, SEMAR published the "Bases for the regulation of rates for the provision of maritime transport services 
for passengers in the northern region of the state of Quintana Roo" (Official Journal of 18 March 2022).  
210 Rules of Operati on of the National Merchant Marine Development Fund (Official Journal of 
24 September 2012).  
211 Article 25 of the Shipping and Maritime Trade Law.  
212 General Law on National Assets (Official Journal of 20 May 2004), as last amended on 
14 September  2021.  
213 Declaration establishing the reversion of operations, terminals, marinas and facilities in the Port of 
Acapulco, Guerrero, to the federal govern ment (Official Journal of 7 July 2021).  
214 Article 44 of the Ports Law classifies port services into different grou ps: services to vessels for inland 
navigation (pilotage, towing, mooring and lighterage); general services (for example: supply of fuel and 
drinking water, and provisioning); and handling services (for example: loading/unloading, delivery/receipt and 
storage). 
215 Articles 40, 46, 51 and 53 of the Ports Law.  WT/TPR/S/429 • Mexico  
 
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  two licences were granted. Harbour pilots must be Mexican nationals.216 Foreign -owned shipping 
companies may provide po rt dredging, construction and maintenance services, using foreign vessels, 
subject to reciprocity arrangements and prior consent from SEMAR.217 
4.165.   The DGP may establish rates for using terminals and providing port services if it determines 
that there is no eff ective competition in the port.218 This occurs if, for example, there is just one 
terminal, a specific cargo can only be handled at one terminal, or if there is just one service provider. 
The criteria for determining the maximum rates were not revised durin g the review period; the DGP 
sets these criteria taking into account the operating and capital cost, the actual and estimated traffic, 
and the rates on domestic and international markets.219 The maximum rates are set each year. 
Within the context of this re view, the authorities have stated that 51% of the port service rates are 
regulated  in 2022 . During the pandemic, discounts were granted on rates, and payments could be 
deferred from 30 to 60 days.220 
4.166.   In 2021, 234.3 million tonnes of cargo were handled in Me xico's ports. This was above the 
2020 volume, but was still below pre -COVID -19 pandemic levels. Foreign trade freight is mainly 
made up of hydrocarbons, containerized cargos and mineral bulk (Chart 4.6). The port of Manzanillo 
is the country's main port an d one of the region's main ports for container traffic. Mexico also has 
15 port terminals, which are located away from port precincts and are used for exporting salt, 
gypsum and phosphoric rock.  
Chart 4.6 Foreign trade port operations, by cargo type, 2017 -21 
 
Source:  CGPMM data. Viewed at: https://www.gob.mx/puertosymarinamercante/acciones -y-
programas/estadisticas -70565 ; e información facilitada por las autoridades . 
4.4.4   Tourism  
4.167.   Mexico regards tourism as a strategic sector.221 According to data from the Tourism Satellite 
Account (TSA), tourism generated approximately 8.5% of GDP between 2017 and 2019. However, 
in 2020, o n account of the pandemic, the sector's contribution to GDP fel l to 6.7%.222 In 2021, the 
 
216 Article 57 of the Shipping and Maritime Trade Law.  
217 Article 40 of the Shipping and Maritime Trade Law.  
218 The DGP may seek guidance from COFECE.  
219 Rate regulation with respect to concessions for the Integrated Port Administrations (APIs) indicated 
(Official Journal of 22 December 1999).  
220 Information provided by the authorities.  
221 Sectoral Programme  for Tourism  2020-24. 
222 Mexico Tourism Satellite Ac count  2020. Viewed at: 
https://www.datatur.sectur.gob.mx/SitePages/ProductoDestacado3.aspx . 
020406080100120140
020406080100120140
2017 2018 2019 2020 2021
Imports (in million tonnes)Exports (in million tonnes)Exports (left-hand scale)
Loose general cargo
Containerized general cargo
Agricultural bulk
Mineral bulk
Petroleum and derivatives
Other fluids
Imports (right-hand scale)
Loose general cargo
Containerized general cargo
Agricultural bulk
Mineral bulk
Petroleum and derivatives
Other fluidsWT/TPR/S/429 • Mexico  
 
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  sector began to bounce back and its estimated contribution to GDP stood at 7.1%.223 The most 
important tourism activities for the economy are accommodation services, transport, restaurant and 
leisure services, and handicrafts. Tourism is also a major source of employment; in 2021, it 
accounted for 8.5% of all jobs.224 
4.168.   In 2019, Mexico welcomed 97.4 million visitors, including 45 million tourists, which was a 
record high (Table 4.17). That same year, Mexico was the world's seventh tourism destinat ion.225 
In 2020, even though the pandemic brought down the number of international tourists, Mexico 
became the world's third tourism destination, as it adopted very few restrictions on international 
tourism.226 Tourism has traditionally been one of Mexico's main sources of foreign exchange, after 
remittances.  
Table 4.17 International tourism indicators, 2017 -21 
 2017  2018  2019  2020  2021  
Number of visitors (millions)  99.3 96.5 97.4 51.1 55.3 
Tourists  39.3 41.3 45.0 24.3 31.9 
Short -stay visitors  60.0 55.2 52.4 26.8 23.4 
Total expenditure (in USD million)  21.3 22.5 24.6 11.0 19.8 
Tourists  19.2 20.4 22.4 9.9 18.5 
Short -stay visitors  2.1 2.1 2.2 1.1 1.3 
Source:  Information provided by the authorities.  
4.169.   The tourism sector is regulated by federal laws and laws adopted by federal agencies. The 
General Law on Tourism and its implementing Regulations provide the legal framework for the sector 
at a federal level .227 
4.170.   The Ministry of Tourism (SECTUR) formulates  and implements sectoral policy, the aims of 
which are outlined in the Sectoral Programme for Tourism (PROSECTUR)  2020-24, based on the 
National Development Plan (PND) 2019 -24. Mexico is pursuing an inclusive and sustainable tourism 
model. One of the objectives being  pursued in order to promote sector growth is diversifying tourist 
destinations and tourism markets. As a result, Mexico has boosted its international image228 and has 
set up digital platforms to promote the country's various destinations and tourism products; it has 
also rolled out projects, such as Tren Maya, to promote cultural and historical tourism on the Yucatan 
peninsula, as well as training and certifica tion programmes. In addition, in order to bring about the 
quickest possible post -pandemic recovery, it has endeavoured to promote domestic tourism.  
4.171.   All tourism service suppliers must be registered with the National Tourism Regist ry (RNT), 
which is managed by SECTUR.229 Land transport services for tourists are reserved to 
Mexican  nationals and Mexican companies, and require permits which are non -transferable 
(Section  2.4). Foreigners may provide all other types of tourism services, including tourist guide 
services. In order to provide these services, a special licence from SECTUR is required in order to be 
able to register in the RNT.230 
4.172.   The National Tourism Development Fund (FONATUR), a state entity, oversees the 
development of tourist areas and promotes inves tment. Through FONATUR, investors can obtain 
 
223 Ministry of Tourism press release No. 083/2022.  
224 Ministry of Tourism data. Vi ewed at: 
https://www.datatur.sectur.gob.mx/SitePages/ResultadosITET.aspx . 
225 Ministry of Tourism (2020), Segundo Informe de Labores 2019 -2020. Viewed at: 
https://www.gob.mx/sectur/documentos/secretaria -de-turismo -segundo -informe -de-labores -2019-2020-
251051 . 
226 Ministry of Tourism press release No. 040/2022.  
227 General Law on Tourism (Official Journal of 17 June 2009), as last amended on 31 July 2019; and 
Regulations implementing the General Law on Tourism (Official Journal of 6 July 2015), as last amended on 
16 August 2015.  
228 In 2019, the Mexican Tourism Promotion Board, a State -owned corporation responsible for promoting 
Mexico as a tourist destination, was shut down. Since 2019, the Tourism Diplomacy Council (comprising 
representatives from SECTUR, the Ministry of Foreign Af fairs (SRE) and private enterprise) has  developed 
campaigns to promote tourism abroad; these campaigns are rolled out via SRE representative offices.  
229 RNT. Viewed  at: https://www.gob.mx/tramites/ficha/inscribete -al-registro -nacional -de-
turismo/SECTUR3109 . 
230 Article 78 of the Regulations implementing the General Law on Tourism . WT/TPR/S/429 • Mexico  
 
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  financing with preferential conditions in order to acquire landed property; 30% of the loan amount 
is paid within a year interest -free and the rest is paid within five years  at a preferential rate.231 
Through FON ATUR, eight tourist areas have been developed, especially for sun and beach tourism.232 
4.173.   Bancomext, the federal development bank, regards tourism as a "strategic or priority sector" 
on account of the foreign currency it generates and its contribution to the job market. The bank 
provides financing, in pesos or US dollars, of up to 50% of the project costs. The terms of the loan, 
including the interest rates, are set on a case -by-case basis. The amounts financed vary depending 
on whether the bank is a first -tier or second -tier bank.233 In 2021, the amount financed by 
Bancomext within the tourism sector was MXN 40,831 million, which is 21.2% of the total amount 
provided to "strategic" sectors.234 
 
 
 
 
 
 
231 Government of Mexico. Viewed at: https://www.gob.mx/fonatur/acciones -y-programas/preguntas -
frecuentes -fonatur -faq-s and https://www.g ob.mx/fonatur/acciones -y-programas/porque -invertir -en-
fonatur?idiom=es . 
232 Government of Mexico. Viewed at: https://www.gob.mx/fonatur/acciones -y-programas/destinos -
fonatur . 
233 Bancomext. Viewed at: https://www.bancomext.com/sector/turismo . 
234 Information provided by the authorities.  WT/TPR/S/429 • Mexico  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS section and main chapter, 2016 -21 
(USD million and %)  
Descrip tion 2016  2017  2018  2019  2020  2021  
 (USD million ) 
Total exports  373,954 409,433 450,713 460,604 416,999 494,225 
 (% of exports ) 
1 - Live animals; animal products  0.9 0.9 0.9 1.0 1.1 1.1 
   02. Meat and edible meat offal  0.4 0.4 0.4 0.5 0.6 0.7 
  03. Fish and crustaceans, molluscs and 
other aquatic invertebrates  0.2 0.2 0.3 0.2 0.2 0.2 
  01. Live animals  0.2 0.2 0.2 0.2 0.2 0.1 
  04. Dairy produce; birds' eggs; natural 
honey; edible products of animal origin  0.1 0.1 0.1 0.1 0.1 0.1 
2 - Vegetable products  3.7 3.7 3.4 3.6 4.1 3.8 
  07. Edible vegetables and certain roots and 
tubers  1.8 1.6 1.6 1.6 2.0 1.7 
  08. Edible fruit and nuts; peel of citrus fruit 
or melons  1.5 1.6 1.4 1.6 1.7 1.7 
  09. Coffee, tea, maté and spices  0.1 0.1 0.1 0.1 0.1 0.1 
  10. Cereals  0.2 0.2 0.1 0.1 0.1 0.1 
3 - Animal or vegetable fats and oils  0.1 0.1 0.1 0.1 0.1 0.1 
4 - Prepared foodstuffs; beverages, spirits and 
vinegar; tobacco and manufactured tobacco 
substitutes  3.0 3.2 3.2 3.4 3.9 3.9 
  22. Beverages, spirits and vinegar  1.2 1.4 1.5 1.6 1.9 2.0 
  19. Preparations of cereals, flour, starch or 
milk 0.5 0.5 0.4 0.5 0.6 0.5 
  20. Preparations of vegetables, nuts or 
other parts of plants  0.4 0.4 0.4 0.4 0.4 0.4 
  17. Sugars and sugar confectionery  0.4 0.4 0.4 0.4 0.4 0.4 
  21. Miscellaneous edible preparations  0.2 0.2 0.2 0.2 0.3 0.3 
5 - Mineral products  6.0 6.9 8.0 6.8 5.8 7.5 
  27. Mineral fuels; bituminous substances; 
mineral waxes  4.8 5.6 6.6 5.4 4.0 5.6 
  26. Ores, slag and ash  1.0 1.2 1.2 1.2 1.6 1.8 
6 - Products of the chemical or allied industries  2.6 2.4 2.3 2.3 2.4 2.5 
  33. Essential oils; perfumery or cosmetic 
preparations  0.6 0.6 0.5 0.5 0.5 0.5 
  29. Organic chemicals  0.5 0.5 0.4 0.5 0.4 0.4 
  30. Pharmaceutical products  0.4 0.3 0.3 0.3 0.3 0.4 
  38. Miscellaneous chemical products  0.3 0.3 0.2 0.2 0.3 0.3 
  28. Inorganic chemicals  0.2 0.2 0.2 0.2 0.2 0.3 
7 - Plastics and articles thereof  2.9 2.9 2.8 2.8 2.9 3.1 
  39. Plastics and articles thereof  2.2 2.2 2.1 2.0 2.2 2.3 
  40. Rubber and articles thereof  0.7 0.7 0.7 0.7 0.7 0.8 
8 - Raw hides and skins, leather, furskins and 
articles thereof; saddlery and harness  0.2 0.2 0.2 0.1 0.1 0.1 
9 - Wood and articles of wood; wood charcoal  0.1 0.1 0.1 0.1 0.2 0.2 
10 - Pulp of wood or of other fibrous cellulosic 
material; paper and paperboard and articles 
thereof  0.5 0.5 0.5 0.4 0.5 0.5 
  48. Paper and paperboard; articles of paper 
pulp, of paper or of paperboard  0.4 0.4 0.4 0.4 0.4 0.4 
11 - Textiles and textile articles  1.7 1.6 1.5 1.5 1.5 1.6 
  62. Articles of apparel and clothing 
accessories, not knitted or crocheted  0.6 0.6 0.5 0.5 0.4 0.4 
  61. Articles of apparel and clothing 
accessories, knitted or crocheted  0.5 0.4 0.4 0.4 0.4 0.4 
  63. Other made up textile articles; sets; 
worn clothing and worn textile articles; 
rags 0.3 0.3 0.3 0.3 0.4 0.3 
12 - Footwear, headgear, umbrellas, sun 
umbrellas, walking -sticks, seat -sticks, whips, 
riding -crops and parts thereof; prepared 
feathers and articles made therewith  0.2 0.2 0.2 0.2 0.1 0.2 
13 - Articles of stone, plaster, cement, 
asbestos, mica or similar materials; ceramic 
produ cts; glass and glassware  1.0 0.9 0.8 0.9 0.9 1.0 
  70. Glass and glassware  0.4 0.4 0.4 0.4 0.4 0.4 
14 - Natural or cultured pearls, precious or 
semi-precious stones, precious metals  2.0 1.7 1.5 1.6 1.9 1.9 WT/TPR/S/429 • Mexico  
 
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  Descrip tion 2016  2017  2018  2019  2020  2021  
15 - Base metals and articles of base metal  4.2 4.1 4.3 4.0 4.2 5.0 
  73. Articles of iron or steel  1.4 1.4 1.5 1.5 1.5 1.6 
  72. Iron and steel  0.5 0.6 0.8 0.7 0.7 1.2 
  74. Copper and articles thereof  0.5 0.5 0.5 0.5 0.5 0.6 
  83. Miscellaneous articles of base metal  0.6 0.6 0.6 0.6 0.6 0.6 
  76. Aluminium and articles thereof  0.5 0.3 0.4 0.3 0.4 0.5 
16 - Machinery and mechanical appliances; 
electrical equipment; parts thereof  36.9 36.0 34.9 34.9 36.1 34.8 
  85. Electrical machinery and equipment; 
image and sound recorders and 
reproducers  20.4 19.9 18.2 17.4 18.0 17.5 
  84. Nuclear reactors, boilers, machinery 
and mechanical appliances  16.5 16.1 16.7 17.5 18.1 17.3 
17 - Vehicles, aircraft, vessels and associated 
transport equipment  24.7 25.8 26.6 27.5 24.9 24.0 
  87. Vehicles other than railway or tramway 
rolling -stock 23.6 24.8 25.6 26.3 24.1 23.1 
  86. Railway or tramway locomotives, 
rolling -stock; mechanical equipment  0.8 0.6 0.6 0.8 0.5 0.4 
18 - Optical, photographic, cinematographic, 
measuring, checking or precision instruments 
and apparatus  4.4 4.3 4.3 4.4 4.5 4.2 
  90. Optical, photographic and precision 
instruments and apparatus; medical or 
surgical instruments and apparatus  4.3 4.3 4.2 4.3 4.5 4.2 
19 - Arms and ammunition; parts and 
accessories thereof  0.0 0.0 0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles  3.5 3.3 3.0 2.8 2.8 2.9 
  94. Furniture; bedding, mattresses, 
mattress supports, cushions and similar 
stuffed furnishings  2.8 2.6 2.4 2.2 2.2 2.2 
  95. Toys, games  0.4 0.4 0.4 0.3 0.3 0.4 
21 - Works of art, collectors' pieces and 
antiques  0.0 0.0 0.0 0.0 0.0 0.0 
Other 1.3 1.3 1.4 1.7 1.8 1.6 
Sourc e: WTO Secretariat calculations, based on data provided by the authorities . 
  WT/TPR/S/429 • Mexico  
 
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  Table A1. 2 Merchandise imports by HS section and main chapter, 2016 -21 
(USD million and  %) 
Descrip tion 2016  2017  2018  2019  2020  2021  
 (USD million ) 
Total imports  387,088 420,395 464,302 455,242 382,986 505,716 
 (% of imports ) 
1 - Live animals; animal products  1.6 1.6 1.5 1.6 1.7 1.7 
 02. Meat and edible meat offal  0.9 0.9 0.8 0.9 0.9 1.0 
 04. Dairy produce; birds' eggs; natural 
honey; edible products of animal origin  0.4 0.4 0.4 0.5 0.5 0.4 
 03. Fish and crustaceans, molluscs and 
other aquatic invertebrates  0.2 0.2 0.2 0.1 0.1 0.2 
2 - Vegetable products  2.5 2.5 2.5 2.5 3.0 3.2 
 10. Cereals  1.1 1.1 1.1 1.1 1.3 1.5 
 12. Oil seeds and oleaginous fruits; 
industrial or medicinal plants; straw and 
fodder  0.8 0.8 0.7 0.8 0.9 1.0 
 08. Edible fruit and nuts; peel of citrus fruit 
or melons  0.2 0.2 0.3 0.3 0.3 0.3 
 11. Products of the milling industry; malt; 
starches; inulin; wheat gluten  0.1 0.1 0.1 0.2 0.2 0.2 
3 - Animal or vegetable fats and oils  0.3 0.3 0.3 0.2 0.3 0.4 
4 - Prepared foodstuffs; beverages, spirits and 
vinegar; tobacco and manufactured tobacco 
substitutes  1.9 1.7 1.6 1.7 1.9 1.7 
 23. Residues and waste from the food 
industries; animal fodder  0.4 0.4 0.3 0.4 0.4 0.4 
 21. Miscellaneous edible preparations  0.4 0.3 0.3 0.3 0.4 0.3 
 22. Beverages, spirits and vinegar  0.3 0.3 0.2 0.2 0.2 0.2 
 20. Preparations of vegetables, nuts or 
other parts of plants  0.2 0.2 0.2 0.2 0.2 0.2 
 19. Preparations of cereals, flour, starch or 
milk 0.2 0.1 0.1 0.2 0.2 0.2 
 17. Sugars and sugar confectionery  0.2 0.2 0.2 0.2 0.2 0.2 
5 - Mineral products  6.8 8.8 10.4 9.5 7.2 9.1 
 27. Mineral fuels; bituminous substances; 
mineral waxes  6.5 8.5 10.0 9.0 6.6 8.5 
 26. Ores, slag and ash  0.2 0.2 0.3 0.3 0.4 0.4 
6 - Products of the chemical or allied industries  6.8 6.9 6.9 6.8 7.8 7.7 
 29. Organic chemicals  1.9 2.1 2.1 1.8 1.9 2.1 
 38. Miscellaneous chemical products  1.1 1.1 1.1 1.2 1.5 1.6 
 30. Pharmaceutical products  1.1 1.0 1.0 1.1 1.3 1.2 
 28. Inorganic chemicals  0.5 0.5 0.6 0.6 0.7 0.7 
 33. Essential oils and resinoids; perfumery 
or cosmetic preparations  0.7 0.7 0.7 0.7 0.8 0.7 
 32. Tanning or dyeing extracts; dyes, 
pigments; paints and varnishes  0.5 0.5 0.5 0.5 0.6 0.5 
7 - Plastics and articles thereof  7.3 7.1 7.0 6.9 7.2 7.4 
 39. Plastics and articles thereof  5.7 5.5 5.4 5.4 5.7 5.9 
 40. Rubber and articles thereof  1.6 1.6 1.5 1.5 1.5 1.5 
8 - Raw hides and skins, leather, furskins and 
articles thereof; saddlery and harness  0.5 0.5 0.4 0.4 0.3 0.3 
9 - Wood and articles of wood; wood charcoal  0.4 0.4 0.4 0.4 0.4 0.5 
 44. Wood and articles of wood; wood 
charcoal  0.4 0.4 0.4 0.4 0.4 0.5 
10 - Pulp of wood or of other fibrous cellulosic 
material; paper and paperboard and articles 
thereof  1.8 1.7 1.7 1.7 1.7 1.6 
 48. Paper and paperboard; articles of paper 
pulp, of paper or of paperboard  1.4 1.3 1.3 1.3 1.3 1.2 
11 - Textiles and textile articles  2.6 2.4 2.4 2.3 2.3 2.2 
 61. Articles of apparel and clothing 
accessories, knitted or crocheted  0.5 0.4 0.4 0.5 0.5 0.5 
 62. Articles of apparel and clothing 
accessories, not knitted or crocheted  0.4 0.4 0.4 0.4 0.3 0.3 
 54. Man-made filaments  0.3 0.3 0.2 0.2 0.2 0.2 
 63. Other made up textile articles; sets; 
worn clothing and worn textile articles; 
rags 0.2 0.2 0.2 0.2 0.3 0.2 
 52. Cotton  0.2 0.2 0.2 0.2 0.1 0.2 
 59. Impregnated, coated, covered or 
laminated textile fabrics  0.3 0.3 0.3 0.2 0.2 0.2 WT/TPR/S/429 • Mexico  
 
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  Descrip tion 2016  2017  2018  2019  2020  2021  
 56. Wadding, felt and nonwovens; special 
yarns; twine; cables and articles thereof  0.2 0.2 0.2 0.2 0.2 0.2 
12 - Footwear, headgear, umbrellas, sun 
umbrellas, walking -sticks, seat -sticks, whips, 
riding -crops and parts thereof; prepared 
feathers and articles made therewith  0.3 0.3 0.3 0.3 0.3 0.3 
13 - Articles of stone, plaster, cement, 
asbestos, mica or similar materials; ceramic 
products; glass and glassware  0.8 0.8 0.7 0.7 0.7 0.7 
 70. Glass and glassware  0.4 0.4 0.3 0.4 0.4 0.3 
14 - Natural or cultured pearls, precious or 
semi-precious stones, precious metals  0.3 0.2 0.2 0.2 0.2 0.2 
15 - Base metals and articles of base metal  8.0 8.2 8.3 8.1 8.0 9.6 
 72. Iron and steel  2.2 2.4 2.5 2.4 2.3 3.5 
 73. Articles of iron or steel  2.3 2.2 2.1 2.2 2.1 2.2 
 76. Aluminium and articles thereof  1.4 1.4 1.5 1.5 1.5 1.7 
 74. Copper and articles thereof  0.7 0.7 0.7 0.7 0.7 0.9 
 83. Miscellaneous articles of base metal  0.7 0.6 0.6 0.6 0.6 0.6 
 82. Tools, implements, cutlery, of base 
metal  0.6 0.6 0.6 0.5 0.5 0.5 
16 - Machinery and mechanical appliances; 
electrical equipment; parts thereof  39.1 37.3 37.1 37.7 38.8 35.7 
 85. Electrical machinery and equipment; 
sound and image recorders and 
reproducers  21.8 20.4 20.4 20.8 21.6 20.0 
 84. Nuclear reactors, boilers, machinery 
and mechanical appliances  17.3 16.9 16.7 16.9 17.2 15.7 
17 - Vehicles, aircraft, vessels and associated 
transport equipment  10.0 10.2 9.7 9.7 8.6 8.0 
 87. Vehicles other than railway or tramway 
rolling -stock 9.6 9.9 9.3 9.4 8.4 7.7 
18 - Optical, photographic, cinematographic, 
measuring, checking or precision instruments 
and apparatus  3.9 3.7 3.4 3.7 4.2 4.1 
 90. Optical, photographic or precision 
instruments and apparatus; medical or 
surgical instruments and apparatus  3.7 3.6 3.3 3.6 4.1 4.0 
19 - Arms and ammunition; parts and 
accessories thereof  0.0 0.0 0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles  1.7 1.7 1.6 1.6 1.5 1.5 
 94. Furniture; bedding, mattresses, 
mattress supports, cushions and similar 
stuffed furnishings  1.0 0.9 0.9 0.8 0.8 0.8 
 95. Toys, games  0.5 0.5 0.5 0.5 0.5 0.5 
21 - Works of art, collectors' pieces and 
antiques  0.0 0.0 0.0 0.0 0.0 0.0 
Other 3.3 3.6 3.7 3.9 4.0 4.0 
Sourc e: WTO Secretariat calculations, based on data provided by the authorities . 
  WT/TPR/S/429 • Mexico  
 
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  Table A1. 3 Merchandise exports by trading partner , 2016 -21 
(USD million and  %) 
Descrip tion 2016  2017  2018  2019  2020  2021  
 (USD million ) 
Total exports  373,954 409,433 450,713 460,604 416,999 494,225 
 (% of exports ) 
America 89.0 88.0 87.9 88.4 88.2 88.2 
 United States  80.9 79.8 79.5 80.5 81.2 80.7 
 Other America  8.1 8.1 8.4 7.9 7.0 7.5 
 Canad a 2.8 2.8 3.1 3.1 2.7 2.6 
 Brazil 0.8 0.9 1.0 0.9 0.7 0.7 
 Colombia  0.8 0.8 0.8 0.8 0.6 0.7 
 Guatemala  0.5 0.4 0.4 0.4 0.5 0.5 
 Chile 0.5 0.4 0.5 0.4 0.3 0.4 
 Peru 0.4 0.4 0.4 0.3 0.3 0.3 
 El Salvador  0.2 0.2 0.2 0.2 0.2 0.3 
 Panam a 0.2 0.2 0.3 0.3 0.3 0.3 
 Honduras  0.2 0.2 0.2 0.2 0.2 0.2 
 Costa Rica  0.2 0.2 0.2 0.2 0.2 0.2 
 Nicaragua  0.3 0.2 0.2 0.2 0.2 0.2 
 Argentina  0.4 0.4 0.3 0.2 0.2 0.2 
 Dominican Republic  0.2 0.2 0.1 0.1 0.1 0.1 
 Ecuador  0.1 0.2 0.2 0.1 0.1 0.1 
 Trinidad and Tobago 0.0 0.0 0.0 0.0 0.0 0.1 
 Cuba 0.1 0.1 0.1 0.1 0.1 0.1 
 Uruguay  0.0 0.1 0.0 0.0 0.0 0.1 
 Venezuela, Bolivarian Republic of  0.2 0.3 0.2 0.1 0.1 0.0 
Europ e 5.5 5.9 5.9 5.5 5.3 5.4 
 EU (27) 4.3 5.1 5.0 3.9 3.9 3.7 
 Germany  1.1 1.7 1.6 1.5 1.6 1.5 
 Netherlands  0.4 0.5 0.6 0.5 0.5 0.5 
 Spain  0.9 1.0 1.0 0.3 0.3 0.3 
 Belgium  0.4 0.5 0.5 0.3 0.3 0.3 
 Franc e 0.5 0.5 0.4 0.3 0.3 0.3 
 EFTA 0.3 0.2 0.2 0.2 0.3 0.3 
 Switzerland  0.2 0.2 0.2 0.2 0.2 0.3 
 Other  Europ e 0.9 0.6 0.7 1.5 1.2 1.4 
 Other Europe , n.e. s. 0.0 0.0 0.1 0.8 0.5 0.7 
 United Kingdom  0.9 0.6 0.5 0.6 0.6 0.6 
 Türkiye  0.1 0.1 0.1 0.1 0.1 0.1 
Commonwealth of Independent States (CIS)a 0.1 0.1 0.1 0.1 0.1 0.1 
 Russian Federation  0.0 0.1 0.1 0.1 0.1 0.1 
Africa 0.2 0.2 0.2 0.2 0.2 0.2 
 South Africa  0.1 0.0 0.1 0.1 0.0 0.0 
Middle East  0.2 0.2 0.2 0.3 0.3 0.2 
 United Arab Emirates  0.1 0.1 0.1 0.1 0.1 0.1 
 Saudi Arabia, Kingdom of  0.0 0.0 0.1 0.1 0.1 0.1 
 Israel  0.1 0.1 0.1 0.1 0.0 0.1 
Asia 5.0 5.6 5.7 5.5 5.8 5.9 
 China  1.4 1.6 1.6 1.5 1.9 1.9 
 Japan 1.0 1.0 0.9 0.9 0.9 0.8 
 Other  Asia 2.5 3.0 3.2 3.1 3.1 3.2 
 Chinese Taipei  0.1 0.1 0.4 1.4 1.0 1.5 
 Korea, Rep ublic of  0.7 0.8 0.8 0.5 0.8 0.7 
 Australia  0.2 0.3 0.3 0.2 0.2 0.2 
 Hong Kong, China  0.2 0.2 0.2 0.2 0.3 0.2 
 Singap ore 0.2 0.2 0.3 0.2 0.2 0.2 
 India 0.6 0.8 0.9 0.2 0.2 0.1 
Other 0.0 0.0 0.0 0.0 0.0 0.0 
MEMORANDUM:        
European Union  (28) 5.1 5.7 5.5 4.5 4.5 4.3 
North American Free Trade Agreement  83.7 82.6 82.6 83.6 83.9 83.3 
a Commonwealth of Independent States, including some associate and former member States . 
Sourc e: WTO Secretariat calculations, based on data provided by the authorities . 
  WT/TPR/S/429 • Mexico  
 
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  Table A1. 4 Merchandise imports by trading partner , 2016 -21a 
(USD million and  %) 
Descrip tion 2016  2017  2018  2019  2020  2021  
 (USD million ) 
Total imports  387,088 420,395 464,302 455,242 382,986 505,716 
 (% of imports ) 
America 52.1 51.9 52.1 50.6 49.3 49.7 
 United States  46.5 46.4 46.6 45.3 43.9 43.8 
 Other  America 5.7 5.5 5.5 5.4 5.4 5.9 
 Canad a 2.5 2.3 2.3 2.2 2.2 2.2 
 Brazil 1.2 1.3 1.4 1.5 1.5 1.7 
 Chile 0.3 0.4 0.4 0.3 0.3 0.4 
 Colombia  0.3 0.4 0.4 0.4 0.3 0.3 
 Argentina  0.2 0.2 0.2 0.2 0.2 0.2 
 Nicaragua  0.2 0.1 0.1 0.1 0.1 0.2 
 Costa Rica  0.1 0.1 0.1 0.1 0.2 0.2 
 Peru 0.1 0.1 0.1 0.1 0.1 0.1 
 Guatemala  0.1 0.1 0.1 0.1 0.1 0.1 
 Honduras  0.1 0.1 0.1 0.1 0.1 0.1 
 Trinidad and Tobago 0.1 0.1 0.1 0.1 0.1 0.1 
 Uruguay  0.1 0.1 0.1 0.1 0.1 0.1 
 El Salvador  0.0 0.0 0.1 0.1 0.1 0.1 
Europ e 11.7 12.4 12.2 12.0 11.7 11.2 
 EU (27) 10.4 11.1 10.9 10.8 10.5 10.0 
 Germany  3.6 3.9 3.8 3.9 3.6 3.4 
 Italy 1.4 1.5 1.4 1.3 1.3 1.2 
 Spain  1.2 1.2 1.2 1.0 1.0 0.9 
 Franc e 1.0 1.0 0.9 1.0 0.9 0.8 
 Netherlands  0.5 0.6 0.5 0.5 0.5 0.5 
 EFTA 0.5 0.4 0.4 0.4 0.4 0.4 
 Switzerland  0.4 0.4 0.4 0.4 0.4 0.4 
 Other Europe  0.8 0.8 0.8 0.8 0.7 0.8 
 United Kingdom  0.5 0.6 0.5 0.5 0.5 0.4 
 Türkiye  0.2 0.2 0.2 0.2 0.2 0.3 
Commonwealth of Independ ent States 
(CIS)a 0.4 0.4 0.4 0.3 0.2 0.5 
 Russian Federation  0.3 0.3 0.4 0.3 0.2 0.4 
Africa 0.2 0.3 0.5 0.3 0.3 0.3 
 South Africa  0.1 0.1 0.1 0.1 0.1 0.1 
 Morocco  0.1 0.1 0.1 0.1 0.1 0.1 
Middle East  0.3 0.3 0.3 0.3 0.3 0.4 
 Israel  0.2 0.2 0.1 0.2 0.2 0.2 
 United Arab Emirates  0.1 0.1 0.1 0.1 0.1 0.1 
Asia 35.2 34.8 34.5 36.4 38.1 38.0 
 China  18.0 17.6 18.0 18.2 19.2 20.0 
 Japan 4.6 4.3 3.9 3.9 3.6 3.4 
 Other  Asia 12.7 12.8 12.6 14.2 15.3 14.6 
 Korea, Rep ublic of  3.5 3.7 3.6 3.9 3.8 3.8 
 Malaysia 2.1 1.9 2.0 2.5 2.8 2.5 
 Chinese Taipe i 1.8 1.8 1.8 2.0 2.3 2.3 
 Viet Nam  1.0 1.1 0.9 1.3 1.7 1.7 
 Thailand  1.4 1.4 1.4 1.3 1.4 1.3 
 India 1.1 1.2 1.1 1.1 1.1 1.2 
Other 0.0 0.0 0.0 0.0 0.0 0.0 
MEMORANDUM:        
European Union  (28) 11.0 11.7 11.4 11.3 10.9 10.4 
Southern Common Market  1.6 1.6 1.7 1.7 1.7 1.9 
North American Free Trade Agreement  48.9 48.6 48.8 47.4 46.1 45.9 
a Commonwealth of Independent States, including some associate and former member States . 
Sourc e: WTO Secretariat calculations, based on data provided by the authorities . 
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  Table A2. 1 Measures notified  to the WTO, 2017 -22 (31 May)  
Agreement/Decision  Type of measure 
notified  Frequency  WTO document  
Agreement on Trade -Related Aspects of Intellectual Property Rights  
Article 63.2  Laws/regulations made 
effective by the notifying 
Member; amendment of a 
law/regulation  Once only; ad 
hoc 
(amendment)  IP/N/1/MEX/23; IP/N/1/MEX/C/9, 
28/9/2020  
IP/N/1/MEX/22/Rev.1; 
IP/N/1/MEX/E/1/Rev.1, 24/9/2020  
IP/N/1/MEX/21; IP/N/1/MEX/I/15, 
30/7/2020  
IP/N/1/MEX/20; IP/N/1/MEX/G/9, 
26/2/2020  
IP/N/1/MEX/19; IP/N/1/MEX/G/8, 
19/9/2019  
IP/N/1/MEX/18; IP/N/1/MEX/I/14, 
30/5/2018  
IP/N/1/MEX/17; IP/N/1/MEX/G/7, 
24/5/2018  
IP/N/1/MEX/16; IP/N/1/MEX/I/13, 
29/3/2018  
IP/N/1/MEX/15; IP/N/1/MEX/I/12, 
14/2/2017  
Agreement on Agriculture  
Articles 10 and 18.2; 
ES:1 Export subsidies  On an annual 
basis G/AG/N/MEX/54, 2/6/2021  
Articles 10 and 18.2; 
ES:2 Export subsidies  On an annual 
basis G/AG/N/MEX/45, 18/3/2019  
Article 18.2; DS:1  Domestic support  On an annual 
basis G/AG/N/MEX/55, 25/10/2019  
Article 18.2; MA:2  Market access - volume of 
imports under tariff and 
other quotas  On an annual 
basis G/AG/N/MEX/47, 15/7/2019  
Articles 5.7 and 18.2; 
MA:5 Market access - special 
safeguard provisions  On an annual 
basis G/AG/N/MEX/50, 20/5/2021  
General Agreement on Trade in Services  
Articles III:4 and/or 
IV:2 Enquiry points/contact 
points  Ad hoc  S/ENQ/78/Rev.22, 10/2/2022  
Article V:7(a)  Economic integration 
agreements  Once only  S/C/N/1060, 28/6/2021  
S/C/N/1017, 17/9/2020  
S/C/N/920, 20/12/2018  
S/C/N/4/Add.1, 9/10/2020  
Enabling Clause - regional trade agreements  
Paragraph 4(a)  Preferential arrangements 
among developing 
countries  Ad hoc  WT/COMTD/RTA15/N/1, 3/3/2020  
WT/COMTD/RTA8/N/1, 30/7/2019  
WT/COMTD/RTA7/N/1, 30/7/2019  
WT/COMTD/RTA6/N/1, 30/7/2019  
WT/COMTD/RTA5/N/1, 30/7/2019  
WT/COMTD/RTA4/N/1, 30/7/2019  
WT/COMTD/RTA3/N/1, 30/7/2019  
WT/COMTD/N/53, 19/6/2017  
Agreement on Implementation of Article VI of the GATT  (anti -dumping)  
Article 16.4 - Ad hoc  
reports  Anti-dumping actions 
(preliminary and final)  Ad hoc  G/ADP/N/369, 4/5/2022 - 
G/ADP/N/295, 30/1/2017  
Article 16.4 – 
Semi-annual reports  Anti-dumping actions 
(taken within the 
preceding six months)  On a semi -
annual basis  G/ADP/N/364/MEX, 21/3/2022  
GATT 1994  
Article XXIV:7(a)  Formation of a free -trade 
area Ad hoc  WT/REG456/N/1, 28/6/2021  
WT/REG407/N/1, 17/9/2020  
WT/REG395/N/1, 20/12/2018  
Agreement on Import Licensing Procedures  
Article 7.3  Replies to the 
questionnaire on import 
licensing procedures  On an annual 
basis G/LIC/N/3/MEX/7, 2/6/2021  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, Annex B  Sanitary/phytosanitary 
regulations  Ad hoc  G/SPS/N/MEX/406, 8/4/2022 - 
G/SPS/N/MEX/307, 9/1/2017  WT/TPR/S/429 • Mexico  
 
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  Agreement/Decision  Type of measure 
notified  Frequency  WTO document  
Agreement on Rules of Origin  
Article 5 and 
Annex  II.4 - Ad hoc  Changes to 
laws/regulations 
(modifications to 
preferential and non -
preferential rules of origin; 
new preferential rules of 
origin)  Ad hoc  G/RO/N/210, 4/2/2021  
G/RO/N/186, 15/4/2019  
Article 5 and 
Annex  II.4 - First time  Preferential and non-
preferential rules of origin 
in force  Once only  G/RO/N/154, 21/7/2017  
Agreement on Trade Facilitation  
Article 1.4  Publication of all 
procedures for 
importation, exportation 
and transit, including fees 
imposed  Ad hoc  G/TFA/N/MEX/1, 28/9/2018  
Article 10.4.3  Single window  Ad hoc  
Article 10.6.2  Customs brokers  Ad hoc  
Article 12.2.2  Contact point for the 
exchange of information  Ad hoc  
Agreement on Technical Barriers to Trade  
Article 2.9  Technical regulations  Ad hoc  G/TBT/N/MEX/510, 12/5/2022 - 
G/TBT/N/MEX/344, 17/1/2017  
Articles 2.9 and 5.6  Technical regulations and 
conformity assessment 
procedures  Ad hoc  G/TBT/N/MEX/511, 13/5/2022  
G/TBT/N/MEX/509, 28/4/2022  
G/TBT/N/MEX/507, 17/2/2022  
G/TBT/N/MEX/503, 12/10/2021  
G/TBT/N/MEX/500, 19/8/2021  
G/TBT/N/MEX/461, 16/12/2019  
G/TBT/N/MEX/404, 25/4/2018  
G/TBT/N/MEX/395, 21/2/2018  
Article 2.10  Technical regulations 
(urgent)  Ad hoc  G/TBT/N/MEX/505, 8/11/2021 - 
G/TBT/N/MEX/345, 19/1/2017  
Article 5.6  Conformity assessment 
procedures  Ad hoc  G/TBT/N/MEX/496, 30/4/2021  
G/TBT/N/MEX/477, 28/9/2020  
G/TBT/N/MEX/472, 24/7/2020  
G/TBT/N/MEX/465, 5/5/2020  
Articles to be 
determined  Technical regulations  Ad hoc  G/TBT/N/MEX/497, 28/6/2021  
Agreement on Subsidies and Countervailing Measures  
Article 25.1 - GATT 
Article XVI:1  Subsidies  On an annual 
basis G/SCM/N/372/MEX, 12/1/2022  
Article 25.11 - Ad hoc  
reports  Countervailing duty 
actions (preliminary and 
final)  Ad hoc  G/SCM/N/374, 19/2/2021  
G/SCM/N/352, 14/8/2019  
G/SCM/N/344, 25/1/2019  
G/SCM/N/337, 30/8/2018  
G/SCM/N/324/Rev.1, 6/2/2018  
G/SCM/N/329/Rev.1, 5/2/2018  
Article 25.11 – 
Semi-annual reports  Countervailing measures 
(taken within the 
preceding six months)  On a semi -
annual basis  G/SCM/N/379/MEX, 17/9/2021  
Source:  WTO Secretariat.  
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  Table A3. 1 Summary analysis of the MFN tariff, 2021  
Product d escription  MFN Bound  
tariff rangea  
(%) Number  
 of lines  Average  
(%) Range  
(%) Coefficient 
of variation  
(CV) 
Total  7,802  6.7 0 - 75 1.3 0 - 254 
HS 01 -24 1,101  14.2 0 - 75 0.8 0 - 254 
HS 25 -97 6,701  5.5 0 - 50 1.3 0 - 156 
By WTO category  
Agricultural products  905 13.2 0 - 75 0.9 0 - 254 
 - Animals and animal products  135 15.5 0 - 75 1.0 9 - 254 
 - Dairy products  30 22.1 0 - 45 0.7 18 - 156 
 - Fruit, vegetables and garden 
produce  252 15.1 0 - 75 0.5 5 - 245 
 - Coffee and tea  26 21.1 0 - 45 0.8 25 - 156 
 - Cereals and cereal preparations  117 9.9 0 - 45 0.8 9 - 194 
 - Oilseeds, fats and oils and their 
products  92 7.4 0 - 45 1.1 0 - 254 
 - Sugar and confectionery  20 30.0 7.3 - 75 0.8 45 - 210.4  
 - Beverages, alcohol and tobacco  61 24.4 0 - 67 0.6 36 - 67.5 
 - Cotton  5 0.0 0 - 0 n.a. 37 - 45 
 - Other agricultural products n.e.s.  167 6.8 0 - 36 1.1 0 - 45 
Non-agricultural products (including 
petroleum)  6,897  5.9 0 - 50 1.3 0 - 156 
 - Non-agricultural products 
(excluding petroleum)  6,888  5.9 0 - 50 1.3 0 - 156 
 - - Fish and fish products  276 13.8 0 - 20 0.4 30 - 45 
 - - Mineral products and metals  1,166  4.4 0 - 15 1.4 0 - 50 
 - - Chemicals and photographic 
products  1,647  2.7 0 - 20 1.5 0 - 156 
 - - Wood, wood pulp, paper and 
furniture  377 4.8 0 - 20 1.2 0 - 50 
 - - Textiles  644 9.4 0 - 25 0.5 10 - 50 
 - - Clothing  265 21.4 20 - 25 0.1 35 - 50 
 - - Leather, rubber, footwear and 
travel articles  234 7.3 0 - 30 1.3 20 - 50 
 - - Non-electrical machinery  877 4.4 0 - 20 1.4 20 - 50 
 - - Electrical machinery  488 4.0 0 - 20 1.5 10 - 50 
 - - Transport equipment  302 8.8 0 - 50 1.6 10 - 50 
 -- Non-agricultural products n.e.s.  612 5.5 0 - 20 1.2 10 - 50 
 - Petroleum  9 0.3 0 - 3 2.8 35 - 50 
By HS section  
01 Live animals; animal products  425 14.2 0 - 75 0.7 0 - 254 
02 Vegetable products  363 12.3 0 - 75 0.7 0 - 245 
03 Fats and oils  54 8.1 0 - 20 0.8 18 - 254 
04 Prepared foodstuffs, etc.  259 18.8 0 - 75 0.7 18 - 210.4  
05 Mineral products  162 0.3 0 - 10 5.0 0 - 50 
06 Products of the chemical or allied 
industries  1,487  2.3 0 - 20 1.6 0 - 156 
07 Plastics and rubber  368 4.7 0 - 15.9 1.2 10 - 50 
08 Raw hides and skins, and leather  76 5.9 0 - 20 1.5 9 - 35 
09 Wood and articles of wood  157 6.2 0 - 15 1.0 10 - 35 
10 Pulp of wood, paper, etc.  191 2.8 0 - 15 1.4 0 - 50 
11 Textiles and textile articles  895 12.8 0 - 25 0.6 9 - 50 
12 Footwear and headgear  82 14.4 0 - 30 0.7 35 - 35 
13 Articles of stone  187 6.6 0 - 15 1.0 10 - 50 
14 Precious stones, etc.  60 3.6 0 - 15 1.7 35 - 35 
15 Base metals and articles of base 
metal  774 5.0 0 - 15 1.3 0 - 50 
16 Machinery and mechanical 
appliances  1,379  4.2 0 - 20 1.5 10 - 50 WT/TPR/S/429 • Mexico  
 
- 174 - 
 
  Product d escription  MFN Bound  
tariff rangea  
(%) Number  
 of lines  Average  
(%) Range  
(%) Coefficient 
of variation  
(CV) 
17 Vehicles, aircraft, vessels and 
associated transport equipment  314 8.6 0 - 50 1.6 10 - 50 
18 Precision instruments  317 3.2 0 - 15 1.6 10 - 50 
19 Arms and ammunition  25 10.8 0 - 15 0.5 35 - 35 
20 Miscellaneous manufactured 
articles  218 8.8 0 - 20 0.8 25 - 35 
21 Works of art, etc.  9 0.0 0 - 0 n.a. 35 - 35 
n.a. Not applicable.  
a The bindings are given in HS 2012 and the applied tariffs in HS 2017; consequently, there may be 
differences in the number of lines included in the analysis.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
  
  WT/TPR/S/429 • Mexico  
 
- 175 - Table A3. 2 Multilateral (WTO) tariff quotas and import volume, 2020  
Description 
(HS code)  Applied MFN tariff  Bound MFN 
quota volume 
(tonnes)  Import volume 
under quota, 
2020  Quota usage 
(%) % of total value of imports  
In-quota  Out-of-quota  2020  Jan‐June 
2021  
Total imports (USD million)     383,194  235,096  
Meat and edible offal  of poultry  1,000  n.a.a n.a. 0.1 0.2 
0207.14.99  50 75    0.0 0.1 
0207.26.03  50 75    0.0 0.1 
0207.27.99  50 75    0.0 0.0 
0207.44.01  50 0    .. .. 
0207.45.99  50 0    0.0 0.0 
0207.54.01  50 0    .. .. 
0207.55.99  50 0    .. .. 
0207.60.03  50 0    .. .. 
Animal fats  2,111  n.a.a n.a. 0.0 0.0 
0209.10.01  50 15    0.0 0.0 
0209.90.01  50 0    0.0 0.0 
0209.90.99  50 15    .. .. 
1501.10.01  50 15    0.0 0.0 
1501.20.01  50 15    0.0 0.0 
1501.90.99  50 15    0.0 0.0 
1516.10.01  50 15    0.0 0.0 
Milk, in powder    80,000  4,577  5.7 0.2 0.2 
0402.10.01  0 45    0.2 0.2 
0402.21.01  0 45    0.0 0.0 
Sugar and products with a high sugar content  183,800  n.a.a n.a. 0.3 0.3 
0402.99.01  50 15% + US D 0.36/kg of sugar     0.0 0.0 
0402.99.99  50 20% + US D 0.36/kg of sugar     0.0 0.0 
1702.20.01  50 15    0.0 0.0 
1702.30.01  50 15    0.0 0.0 
1806.20.01  50 20% + US D 0.36/kg of sugar     0.0 0.0 
1806.32.01  50 20% + US D 0.36/kg of sugar     0.0 0.0 
1806.90.99  50 20% + US D 0.36/kg of sugar     0.0 0.0 
1901.90.03  50 10    0.0 0.0 
1901.90.04  50 10    0.0 0.0 
1901.90.05  50 45    0.0 0.0 
1901.90.99  50 10% + US D 0.36/kg of sugar     0.0 0.0 
2101.11.02  50 45  n.a.b  0.0 0.0 
2101.11.99  50 45  n.a.b  0.0 0.0 
2101.12.01  50 45  n.a.b  0.0 0.0 
2103.90.99  50 20  n.a.c  0.1 0.1 
2106.90.01  50 15    .. .. 
2106.90.99  50 15% + US D 0.36/kg of sugar     0.1 0.1 
2202.99.01  50 10    0.0 0.0  
  WT/TPR/S/429 • Mexico  
 
- 176 - Description 
(HS code)  Applied MFN tariff  Bound MFN 
quota volume 
(tonnes)  Import volume 
under quota, 
2020  Quota usage 
(%) % of total value of imports  
In-quota  Out-of-quota  2020  Jan‐June 
2021  
2202.99.02  50 20    0.0 0.0 
2202.99.03  50 20    0.0 0.0 
2202.99.04  50 20    0.0 0.0 
2202.99.99  50 20% + US D 0.36/kg of sugar     0.0 0.0 
Hard and medium -hard c heese  2,405  n.a.b n.a. 0.0 0.0 
0406.10.01  50 45    0.0 0.0 
0406.30.02  50 45    .. 0.0 
0406.90.99  50 45    0.0 0.0 
Potatoes  1,000  n.a.a n.a. 0.0 0.0 
0701.90.99  50 75    0.0 0.0 
Beans, other than for sowing  5,000  n.a.c n.a. 0.0 0.0 
0713.33.99  50 45    0.0 0.1 
Coffee  20,800  n.a.b n.a. 0.0 0.0 
0901.21.01  50 45 (60 kg sacks)    0.0 0.0 
0901.22.01  50 45    0.0 0.0 
0901.90.99  50 45    0.0 0.0 
2101.11.02  50 45    0.0 0.0 
2101.11.99  50 45    0.0 0.0 
2101.12.01  50 45    0.0 0.0 
Wheat  98,076  n.a.a n.a. 0.3 0.3 
1001.11.01  50 15    0.0 0.0 
1001.19.99  50 15    0.0 0.0 
1001.91.01  50 0  n.a.b  0.0 0.0 
1001.91.99  50 15    0.0 0.0 
1001.99.01  50 0  n.a.b  0.3 0.3 
1001.99.99  50 15    0.0 0.0 
Barley  1,200  n.a.c n.a. 0.0 0.0 
1003.90.99  50 0    0.0 0.0 
Maize  (corn)  10,000  n.a.b n.a. 0.1 1.1 
1005.90.04  50 20    0.0 0.1 
1005.90.99  50 0    0.0 1.0 
9506.62.01  0 15    0.0 0.0 
.. Not available.  
n.a. Not applicable.  
a Mexico's imports on preferential terms exceed the amount of the WTO -bound quota.  
b [Quota not used.] Better market access conditions on MFN terms.  
c [Quota not used.] Better market access conditions on unilateral terms.  
Note:  The HS codes in bold also appear in the unilateral quotas.  
Source:  WTO document G/AG/N/MEX/54 of 2  June 2021 and information provided by the authorities.   
  WT/TPR/S/429 • Mexico  
 
- 177 - Table A3. 3 Unilateral tariff quotas and import volume, 2020  
Description (HS code)  Applied MFN tariff  Quota volume (tonnes)  Import volume under 
quota, 2020  Quota usage 
(%) % of total value of imports  
In-quota  Out-of-quota  2020  Jan‐June 2021  
Total imports (USD million)        383,194  235,096  
Meat of bovine animals  200,000  not in force  n.a. 0.2 0.2 
0201.10.01  0 20    .. .. 
0201.20.99  0 20    0.0 0.0 
0201.30.01  0 20    0.2 0.2 
0202.10.01  0 20    0.0 0.0 
0202.20.99  0 25    0.0 0.0 
0202.30.01  0 20    0.0 0.0 
Meat of swine   350,000  not in force  n.a. 0.4 0.4 
0203.12.01  0 20    0.3 0.3 
0203.19.99  0 20    0.0 0.0 
0203.22.01  0 20    0.0 0.0 
0203.29.99  0 20    0.0 0.0 
Chicken  300,000  not in force  n.a. 0.0 0.0 
0207.11.01  0 75    0.0 0.0 
0207.12.01  0 75    0.0 0.0 
Chicken and turkey cuts  100,000  14,258  14.3 0.1 0.3 
0207.13.04  0 75    0.0 0.1 
0207.14.99  0 75    0.0 0.1 
0207.26.03  0 75    0.0 0.1 
0207.27.99  0 75    0.0 0.0 
Duck, goose  200 0 0.0 0.0 0.0 
0207.42.01  10 0    0.0 0.0 
0207.52.01  10 0    .. .. 
0207.60.03  10 0    .. .. 
Fish fillets  55,000  17,255  31.4 0.1 0.1 
0304.31.01  0 15    0.0 0.0 
0304.32.01  0 15    0.0 0.0 
0304.61.01  0 15    0.0 0.0 
0304.62.01  0 15    0.0 0.0 
Egmont cheese  1,600  0 0.0 0.0 0.0 
0406.90.99  20 45    0.0 0.0 
Onions    100,000  0 0.0 0.0 0.0 
0703.10.02  0 10    0.0 0.0 
Beans, other than for sowing  100,000  0 0.0 0.0 0.1 
0713.33.99  0 45    0.0 0.1 
Lemons and limes  140,000  0 0.0 0.0 0.0 
0805.50.03  0 20    0.0 0.0  
  WT/TPR/S/429 • Mexico  
 
- 178 - Description (HS code)  Applied MFN tariff  Quota volume (tonnes)  Import volume under 
quota, 2020  Quota usage 
(%) % of total value of imports  
In-quota  Out-of-quota  2020  Jan‐June 2021  
Roasted and ground coffee in individual containers of a 
weight not exceeding 40 g  According to needs, based 
on domestic consumption 
and production  1,268  n.a. 0.0 0.0 
0901.21.01  0 45    0.0 0.0 
0901.22.01  0 45    0.0 0.0 
0901.90.99  0 45    0.0 0.0 
Barley  9,000  0 0.0 0.0 0.0 
1003.90.99  0 0    0.0 0.0 
Oats  140,000  0 0.0 0.0 0.0 
1004.90.99  0 0    0.0 0.0 
Rice 150,000  0 0.0 0.1 0.1 
1006.10.01  0 9    0.1 0.1 
1006.20.01  0 20    0.0 0.0 
1006.30.02  0 20    0.0 0.0 
1006.40.01  0 20    0.0 0.0 
Malt 9,000  0 0.0 0.1 0.1 
1107.10.01  0 0    0.1 0.1 
1107.20.01  0 0    0.0 0.0 
Wax 250 0 0.0 0.0 0.0 
1521.10.01  10 0    0.0 0.0 
Dairy preparations  44,200  4,334  9.8 0.0 0.0 
1901.90.05  0 45    0.0 0.0 
Coffee extract  372 143 38.4 0.0 0.0 
2101.11.02  20 45    0.0 0.0 
2101.11.99  20 45    0.0 0.0 
2101.12.01  20 45    0.0 0.0 
Oil-cake and other residues  700,000  0 0.0 0.2 0.2 
2304.00.01  0 0    0.2 0.2 
Textured polyester textile  According to needs, based on 
domestic production  0 0.0 0.0 0.0 
5402.33.01  0 5    0.0 0.0 
Motor vehicles  According to needs, based on 
domestic production  258,436  n.a. 1.7 1.7 
8702.10.99  0 20    0.0 0.0 
8702.20.99  0 20    0.0 0.0 
8703.21.99  0 20    0.0 0.0 
8703.22.01  0 20    0.5 0.5 
8703.23.01  0 20    0.8 0.7 
8703.24.01  0 20    0.2 0.2 
8703.31.01  0 20    0.0 0.0 
8703.32.01  0 20    0.0 0.0 
8703.33.01  0 20    0.0 0.0 
8703.80.01  0 0    0.0 0.0 
8704.21.99  0 20    0.0 0.1 
8704.31.99  0 20    0.1 0.2 
8704.90.01  0 0    0.0 0.0  
  WT/TPR/S/429 • Mexico  
 
- 179 - Description (HS code)  Applied MFN tariff  Quota volume (tonnes)  Import volume under 
quota, 2020  Quota usage 
(%) % of total value of imports  
In-quota  Out-of-quota  2020  Jan‐June 2021  
Toys According to needs, based 
on the sales value of 
domestic toy production  143,922  n.a. 0.2 0.1 
3924.90.99  0 15    0.0 0.0 
8715.00.01  0 10    0.0 0.0 
9401.80.01  0 10    0.0 0.0 
9503.00.01  0 15    0.0 0.0 
9503.00.02  0 15    0.0 0.0 
9503.00.03  0 15    0.0 0.0 
9503.00.04  0 15    0.0 0.0 
9503.00.05  0 15    0.0 0.0 
9503.00.06  0 15    0.0 0.0 
9503.00.11  0 15    0.0 0.0 
9503.00.12  0 15    0.0 0.0 
9503.00.14  0 15    0.0 0.0 
9503.00.15  0 15    0.0 0.0 
9503.00.16  0 15    0.0 0.0 
9503.00.20  0 15    0.0 0.0 
9503.00.24  0 15    0.0 0.0 
9503.00.99  0 15    0.0 0.0 
9504.90.99  0 15    0.0 0.0 
9506.62.01  0 15    0.0 0.0 
.. Not available.  
n.a. Not applicable.  
Note:  The HS codes in bold mean that quotas for these products were also negotiated in the WTO.  
Source:  WTO document G/AG/N/MEX/54 of 2  June 2021 and information provided by the authorities.  WT/TPR/S/429 • Mexico  
 
- 180 - 
 
  Table A3. 4 Number of investigations initiated and concluded, and AD measures 
imposed, 2017 -21 
Product  HS code  Date of 
initiation  Duties in 
forcea Termination  Members  
Mushrooms of the 
genus Agaricus  2003.10.01   17/5/2006  3/4/2017  Chile 
Coated flat steel 
products  7210.30.01; 
7210.30.99;  
7210.41.01; 
7210.41.99;  
7210.49.01; 
7210.49.02;  
7210.49.03; 
7210.49.04;  
7210.49.99; 
7210.61.01;  
7210.70.01; 
7210.70.99;  
7212.20.01; 
7212.20.02;  
7212.20.99; 
7212.30.01;  
7212.30.02; 
7212.30.99;  
7212.40.03; 
7212.40.99;  
7225.91.01; 
7225.92.01;  
7226.99.01; 7226.99.02   5/6/2017   China;  
Chinese Taipei  
Carbon and alloy steel 
tubing with 
longitudinal seams and 
a circular, square or 
rectangular 
cross-section  7306.19.99; 
7306.30.01;  
7306.30.99; 7306.61.01   8/3/2018   China  
Seamless carbon steel 
tubing  7304.19.01; 
7304.19.02;  
7304.19.99; 
7304.39.05;  
7304.39.06; 7304.39.99   3/4/2018   Korea, Rep. of; 
Spain ; India; 
Ukraine  
Ceramic and porcelain 
dishware and loose 
articles  6911.10.01; 6912.00.01   29/5/2018   China  
Foil balloons  9503.00.23; 9505.90.99  26/6/2017  7/6/2018   China  
Polybutadiene -styrene 
rubber in emulsion  4002.19.01; 
4002.19.02; 
4002.19.03; 4002.19.99  10/8/2017  25/1/2019  25/1/2019 
(Poland)b Japan; 
Korea , Rep. of; 
Poland; 
United  State s  
Micro -wire for welding  7229.20.01; 
7229.90.99; 8311.90.01  10/8/2017  5/10/2018   China  
Steel plate in sheets  7208.51.01; 
7208.51.02; 
7208.51.03; 
7208.52.01; 7225.40.99  14/11/2017  30/4/2019   Italy; Japan 
Graphite electrodes for 
electric arc furnaces  8545.11.01   1/3/2012  15/1/2018  China; 
United  Kingdom  
Short -fibre polyester  5503.20.01; 5503.20.99  6/2/2018  1/7/2019   China  
Ethylene glycol 
monobutyl ether  2909.43.01   11/9/2012  6/3/2018  United  States  
Aluminium foil in rolls  7607.11.01  28/8/2018  27/12/2019   China  
Aluminium pressure 
cookers  7605.10.01  20/12/2018  26/12/2019   China  
Stainless steel flat 
products  7219.34.01; 
7219.35.01; 7220.20.02  5/4/2019  1/10/2020   China;  
Chinese Taipei  
Wind towers  8502.31.01  16/4/2019  5/10/2020   China  
Metal fasteners  9607.11.01  2/8/2019  6/1/2021   China  
Aluminium discs  7616.99.10  9/8/2019  6/11/2020   China  
Short -fibre polyester  5503.20.01; 
5503.20.02; 
5503.20.03; 5503.20.99   19/8/1993  16/8/2019  Korea, Rep. of WT/TPR/S/429 • Mexico  
 
- 181 - 
 
  Product  HS code  Date of 
initiation  Duties in 
forcea Termination  Members  
Raschel -knit, 
synthetic -fibre 
blankets  6301.40.01; 9404.90.99   26/5/2014  30/9/2019  China  
Hydraulic bottle jacks  8425.42.02  1/11/2019  6/1/2021   China  
Dioctyl phthalate  2917.32.01  19/3/2020  1/9/2021   Korea, Rep. of; 
United  States   
Textile polyester 
filament, textured  5402.33.01  31/3/2020  29/9/2021   China; India  
Partially hydrogenated 
fatty a cid 3823.19.99   7/4/2005  23/7/2020  United  States  
Sodium 
hexametaphosphate  2835.39.02   3/8/2004  23/7/2020  China  
Stearic acid  3823.11.01; 3823.19.99   8/4/2005  30/7/2020  United  States  
Triethanolamine  2922.13.01  31/7/2020    United  States  
Carbon and alloy steel 
slab 7207.12.99; 
7207.20.99; 
7224.90.02; 7224.90.99  21/9/2020    Brazil; 
Russian  Federation  
Concrete steel nails  7317.00.99   29/11/2004  3/12/2020  China  
Carbon steel tubing 
with straight 
longitudinal seams  7305.11.01   5/1/2010  4/12/2020  United  Kingdom  
Steel plate in sheets  7208.51.01; 
7208.51.02; 
7208.51.03; 
7208.52.01; 
7225.40.01; 7225.40.02   14/10/2014  4/12/2020  China  
Blenders for domestic 
and commercial use  8509.40.99   9/12/2014  6/4/2021  China  
Coated flat steel 
products  7210.30.02; 
7210.41.01; 
7210.41.99; 
7210.49.99; 
7210.61.01; 
7210.70.02; 
7212.20.03; 
7212.30.03; 
7212.40.04; 
7225.91.01; 
7225.92.01; 7226.99.99  30/8/2021    Viet Nam 
Type I and type H steel 
beam  7216.32.99; 7216.33.01  31/8/2021    Germany ; 
Spain ; 
United  Kingdom  
a Date of publication in the Official Journal.  
b Neither provisional nor definitive duties were imposed on Poland.  
Source:  WTO Secretariat, based on information provided by the authorities.  
  WT/TPR/S/429 • Mexico  
 
- 182 - 
 
  Table A3. 5 Overview of industrial property rights under the LFPPI  
(Changes introduced by the LFPPI are highlighted in grey)  
Requirements  Term of protection  Exceptions  
Patents  
New inventions involving an 
inventive step that are industrially 
applicable  Non-renewable term of 
20 years from the filing date  The following are not patentable: 
(1) cloning processes and processes for 
modifying genetic identity, as well as the 
industrial or commercial use of human 
embryos; (2) plant varieties; 
(3)  essentially biological  processes for 
obtaining, reproducing and propagating 
plants and animals; (4) methods of 
treatment through surgery or therapy; 
and (5) the human body . 
Utility models  
New and industrially applicable 
utility models  Non-renewable term of 15 
years from the filing date  - 
Industrial designs  
New and industrially applicable 
industrial designs  Renewable term of five 
years from the patent filing 
date, up to a maximum of 
25 years  Industrial designs are not registered 
where their appearance is determined 
solely by technical considerations.  
Layout -designs of integrated circuits  
Unusual and uncommon designs 
involving a creative step  Non-renewable term of 10 
years from the filing date  Original layout -designs (irrespective of 
whether or not they are incorpor ated into 
integrated circuits) which have been 
commercially used on a regular basis in 
Mexico or abroad can be protected only if 
the registration application is filed within 
two years of their first commercial use.  
Industrial secrets  
Any confidential information for 
industrial or commercial use, which 
can be used to maintain a 
competitive or economic advantage 
over competitors  For as long as the 
information remains 
confidential  Information that is public property, that 
is known to a person  skilled in the art or 
that has to be disclosed by legal 
provision or court order, shall not be 
considered an industrial secret.  
Trademarks  
Any sign that is perceptible by the 
senses and can be represented in a 
way that makes it possible to 
identify the object of the protection 
clearly and precisely, that 
distinguishes products or services 
from others of the same type or 
category in the market  Renewable term of 10 years 
from the date on which the 
registration is granted  The exceptions are listed in Article 173.  
Appellations of origin  
Designations for products whose 
quality, characteristics or 
reputation are exclusively or 
essentially due to the geographical 
origin of the raw materials, the 
production processes and natural 
and cultural factors  For as long as the conditions 
that justified the protection 
continue to exist  The exceptions are listed in Article 271.  
Geographical indications  
Designations for products whose 
quality, characteristics or 
reputation are attributed to the 
geographical origin of the raw 
materials, the production processes 
or natural and cultural factors  For as long as the conditions 
that justified the protection 
continue to exist  The exceptions are listed in Article 271.  
Source:  WTO Secretariat.  
  
  WT/TPR/S/429 • Mexico  
 
- 183 - Table A4. 1 Air services agreements, 2017 -21 
  New agreements  Revised agreements  
Curaçao  Spain  Philippines  Finland  Iceland  Israel  Netherlands  Germany  Canada  El Salvador  
Signed 7/7/2021  20/4/2017  14/12/2021  14/2/2019  29/11/2021  14/9/2017  24/4/2018  2/5/2019  29/6/2017  21/8/2018  
Fifth freedom  No Yes, subject to prior approval by the aeronautical authorities  No Yes, subject to prior approval by the 
aeronautical authorities  
Seventh 
freedom  No No Freight: yes, 
subject to 
prior approval 
by the 
aeronautical 
authorities  
Cabotage  No No 
Airline 
designation  Multiple  Dual per 
pair of 
cities, 
except 
Cancun (up 
to four 
airlines)  Multiple  Multiple  Dual per pair 
of cities  Multiple  Multiple  Up to three 
airlines  Multiple  
Withholding  The airlines must be majority -owned and under the effective control of the State party or its nationals  The airlines must be majority -owned and 
under the effective control of the State party 
or its nationals  
Capacity  Free determination  Free determination  
Pricing  Free pricing  Free pricing  
Source:  Information provided by the authorities.  
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