  
  
WT/COMTD/RTA7/1/Rev.1  
29 April 2021  
(21-3545) Page: 1/26 
Committee on Trade and Development  
Dedicated Session on Regional Trade Agreements   
 
  
FACTUAL PRESENTATION  
AGREEMENT BETWEEN MEXICO AND BRAZIL  
(GOODS ) 
Report by the Secretariat  
Revision  
This report, prepared for the consideration of the Economic Complementarity 
Agreement between Mexico and Brazil , has been drawn up by the WTO Secretariat on 
its own responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement and in the 
comments provided and does not imply official endorsement o r acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for 
Regional Trade Agreements (WT/L/671) and thus does not imply any value judgement 
by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Maria Donner 
Abreu (tel: +41 22 739 5244). Any statistical questions arising from this report may be 
addressed to Thakur Parajuli  (tel: +41 22 739 5473). 
    WT/COMTD/RTA7/1/Rev.1  
 
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  Table of Contents  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 3 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ......................  5 
2.1   Background information  ................................ ................................ ...............................  5 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ .............  7 
3.1   Import duties and charges, and quantitative restrictions ................................ ...................  7 
3.1.1    General provisions  ................................ ................................ ................................ .... 7 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ..........  7 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 10 
3.1.3.1    Brazil ................................ ................................ ................................ ................... 10 
3.1.3.2    Mexico  ................................ ................................ ................................ ................. 11 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....13 
3.2   Rules of origin  ................................ ................................ ................................ ............ 14 
3.3   Export duties and charges, and  quantitative restrictions  ................................ .................. 15 
3.4   Regulatory provisions of the agreement  ................................ ................................ ........ 15 
3.4.1    Standards  ................................ ................................ ................................ ............... 15 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......15 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 16 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 17 
3.4.2.1    Global safeguards  ................................ ................................ ................................ .17 
3.4.2.2    Bilateral safeguards  ................................ ................................ ............................... 17 
 Anti-dumping and countervailing measures  ................................ ................................ .17 
3.4.4    Subsidies and State -aid ................................ ................................ ............................ 18 
3.4.5    Customs -related procedures ................................ ................................ ...................... 18 
4   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  19 
4.1   Transparency  ................................ ................................ ................................ ............. 19 
4.2   Current payments and capital movements  ................................ ................................ .....19 
4.3   Exceptions  ................................ ................................ ................................ ................. 19 
4.4   Accession and withdrawal  ................................ ................................ ............................ 19 
4.5   Institutional framework  ................................ ................................ ............................... 19 
4.6   Dispute settlement  ................................ ................................ ................................ .....19 
4.7   Relationship with other agreements concluded by the Parties  ................................ ........... 20 
4.8   Government procurement  ................................ ................................ ............................ 22 
4.9   Intellectual property rights  ................................ ................................ .......................... 23 
4.10   Competition  ................................ ................................ ................................ ............. 23 
4.11   Environment  ................................ ................................ ................................ ............ 23 
4.12   Labour  ................................ ................................ ................................ .................... 23 
4.13   Electronic Commerce  ................................ ................................ ................................ .23 
4.14   Small and medium -sized enterprises  ................................ ................................ ........... 23 
ANNEX 1  ................................ ................................ ................................ ........................  24 WT/COMTD/RTA7/1/Rev.1  
 
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Key Facts  
 
Parties to the Agreement:  Brazil and Mexico  
 
Date of Signature:    3 July 2002  
 
Date of Entry into Force:   2 May 2003  
 
Date of Notification:   30 July 2019 
 
Full implementation:   2003  
 
 
General Note : Brazil's position is that the Agreement is modification of the LAIA 1980 
Treaty of Montevideo, duly notified (WT/COMTD/RTA15/N/1/Add.52 and 
WT/COMTD/77) in full compliance with Section D of the Decision for a Transparency 
Mechanism for Regional Trade Agree ments (WT/L/671). Brazil recalls that 
WT/COMTD/RTA7/N/1 was notified only by Mexico.  
 
 
1  TRADE ENVIRONMENT  
1.1.  In 2019, the GDP of Brazil totalled USD 1,839.8 billion and that of Mexico USD 1,268.9 billion .1 
1.2.  The higher Brazilian GDP is not reflected in its ranking in international merchandise trade in 
2019: Brazil ranked  27 for exports and 28 for imports, and Mexico 1 1 for exports and 12 for imports . 
While the imports of both Parties are  dominated by manufactu ring ( around 75%), manufacturing 
also make up the bulk of Mexico's exports  - 80.5%. Brazil 's exports are less concentrated and 
agricultural  products are the main export category – at 38.9% . 
1.3.  Trade flows between the Parties are  significant . In 20 19, Mexico was Brazil 's 7th largest export 
market and supplier of imports. In turn, Brazil  ranked 6th in terms of exports from Mexico and 9th 
for origin of imports.  
1.4.  Chart 1.1 presents the trends in global and intra -Party merchandise trade between 200 0 and 
2019. Over the period Brazil maintained  a steady global trade surplus that became slightly negative 
in 2013 but  has subsequently recovered. During  the early years of the Agreement  and up to 2009 , 
Brazil  ran a consistent trade surplus  with Mexico . It maintain ed a deficit until a return to surplus in 
2016. Thereafter, bilateral trade figures have fluctuated. Mexico has had a constant small global 
trade deficit , as well as a trade deficit with Brazil except during 2011 -2014.  
 
1 Statistics in this Section are from the WTO Trade Profiles (2020) and the WTO Statistics Database. GDP 
data, sourced from the World Bank, are given in current  prices. Data in merchandise trade charts are from 
Comtrade.  WT/COMTD/RTA7/1/Rev.1  
 
- 4 - 
 
  Chart 1.1 Brazil -Mexico:  Merchandise bilateral trade and with world (2000 -2019) 
 
Source:  UNSD Comtrade database.  
The commodity structure of trade between Brazil and Mexico, as well as of their global trade 
in the periods 2000 -2002 (inner circle) and 2015 -2017 (outer circle) is shown in Chart 1.2 on the 
basis of Harmonized System (HS).  
Machinery, c hemicals and vehicl es accounted on average for more than three quarters of 
Brazil's imports from Mexico  in 2000-2002 and 2015-2017. However, there was a significant shift in 
the import structure  between the two periods : at 35%, vehicles have become the main import 
category i n 2015 -2017 – their share going up from  13% in 2000 -2002.2 Mexico's largest global 
export categories are machinery, vehicles and minerals. accounting for nearly three quarters of 
exports over the periods surveyed. Brazil's largest import categories globally were machinery, 
chemicals and minerals.  
Mexico's main imports from Brazil during 2015 -2017 were machinery, vehicles  and chemicals . 
Durin g 2000-2002, vehicles were the top imports, followed by machinery and metals. Bilateral 
imports have become more diversified over the two periods , with the top three import categories 
accounting for nearly three quarters of imports in 200 0-2002 but less th an half in 2015 -2017. Brazil's 
largest global export categories in the most recent period  were minerals, vegetables and prepared 
foods, which accounted for nearly half of its exports; in the earlier period , vehicles exports were 
greater  than vegetables. Mexico's main global imports - machinery, vehicles  and metals and minerals  
– account for more than half of its global imports . 
 
2 The increase may be due to the MERCOSUR -Mexico agreement. See paragraph 3.2.   
01234567
050100150200250300350400450500
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018Mexico 2000 -2019
(USD billions)
Imports from Brazil (Right Axis)
Export to Brazil (Right Axis)
Total Imports
Total Exports
01234567
050100150200250300350400450500
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018Brazil 2000 -2019 
(USD billions)
Imports from Mexico (Right Axis)
Export to Mexico (Right Axis)
Total Imports
Total ExportsWT/COMTD/RTA7/1/Rev.1  
 
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  Chart 1.2 Brazil -Mexico:  Product composition of merchandise trade, annual average, 
2000 -2002 (inner circle) and 2015 -2017 (outer circle)  
 
Source:  UNSD, Comtrade database.  
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Economic Complementarity Agreement betwe en Mexico and Brazil  (hereafter, the 
"Agreement") was signed on 3 July 2002 by both Parties and entered into force on 2 May 2003 . The 
Agreement was concluded in the context of the Latin American Integration Association (LAIA), as 
Economic Complementarity A greement (ACE) number 53 (AAP.ACE No . 53). Three Additional 
Protocols were signed in 2002, 2003 and 2007 , as follows:  
Table 2.1: Additional Protocols to the Brazil -Mexico Agreement  
Legal Instrument  Date of signature  Date of Entry into Force  
First Additional Protocol  3 July 2002 20 August 2006 
Second Additional Protocol  31 March 2003 02 May 2003 
Third Additional Protocol  4 May 2007 25 June 2007 
Source:  LAIA Secretariat  website.  
 
2 3 2 3 
4 
3 2 
11 
21 41 8 3 4 4 
3 
8 
5 
6 
5 
2 
8 23 18 12 Mexico's imports from Brazil4 
15 
16 
5 2 2 4 33 8 4 5 3 2 
15 
20 
6 3 6 26 10 3 6 Brazil's global imports
2 3 
27 
6 
2 4 37 13 3 3 3 
16 
4 
6 
26 35 4 2 4 Brazil's imports from Mexico
Total: 
2000 -02: USD 0.7 billion
2015 -17: USD 4.0 billion
Total: 
2000 -02: USD 2.2 billion
2015 -17: USD 4.9 billionTotal: 
2000 -02: USd 52.9 billion
2015 -17: USD 153.2 billion
5 
8 
12 
3 
9 
5 3 2 4 2 3 10 13 13 8 7 
17 
12 
18 5 3 4 2 8 8 9 7 Brazil's global exports
Total: 
2000 -02: USD 57.9 billion
2015 -17: USD 198 billion2 2 3 
6 
7 
3 
6 
8 
41 11 3 2 6 2 2 2 
8 
7 
7 
2 
3 
8 
38 10 4 2 6 Mexico 's global imports
Total: 
2000 -02: USD 170.5 billion
2015 -17: USD 400.9 billion2 2 
9 
3 
2 
7 
4 
42 18 3 3 4 4 3 
7 
3 
3 
2 
2 
4 
37 25 4 3 4 Mexico 's global exports
Total: 
2000 -02: USD 161.8 billion
2015 -17: USD 388 billion
WT/COMTD/RTA7/1/Rev.1  
 
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  2.2.  The Agreement is also linked to the broader MERCOSUR -Mexico ACE number 54 (AAP.ACE 
No. 54). The ACE 54 is a framework agreement under which each MERCOSUR member State has 
concluded a bilateral preferential agreement with Mexico. Also under ACE 54 is a MERCOSUR -Mexico 
agreement providing for preferential treatment in automotive  products (AAP.ACE No 55; see 
paragraph 3.2.   below). 
2.3.  The Agreement was notified to the WTO by Mexico on 30 July 2019 under paragraph 4(a) of 
the Enabling Clause ( WT/COMTD/RTA 7/N/1).3 The Agreement was also subject to a notification of 
changes of the LAIA Treaty of Montevideo (TM80) under paragraph 4(a) of the Enabling Clause, 
circulated on 1 3 March 2020 (WT/COMTD/RTA15/N/1/Add. 52).4 The text of the Agreement and 
Additional  Protocols a re available at:  
http://www.aladi.org/nsfaladi/textacdos.nsf/vacewebR?OpenView&Start=1&Count=800&Expand=
22#22  
 
2.4.  The structure of the Agreement  and of the Protocols are presented in Box 2.1.  
Box 2.1 Structure of the Agreement  
Chapters & Annexes  Title 
Chapter I  Objectives and Initial Provisions  
Chapter II  Tariff Preferences  
Chapter III  Trade Disciplines  
Chapter IV  Rules of Origin and Customs Procedures for the Control and Verification of the 
Origin of the Goods   
Chapter V  Safeguards  
Chapter VI  Unfair Trade Practices  
Chapter VII  Economic Cooperation  
Chapter VIII  Standards Technical Regulations and Procedures for Conformity Assessment  
Chapter IX  Sanitary and Phytosanitary Measures  
Chapter X  Convergence  
Chapter XI  Administration of the Agreement  
Chapter XII  Dispute Settlement Regime  
Chapter XIII  Administrative Commission  
Chapter XIV  Entry into Force  
Chapter XV  Accession  
Chapter XVI  Withdrawal  
Chapter XVII  Transitory Provisions  
Chapter XVIII  Final Provisions  
Annex I  Tariff Preferences  
Annex II  Specific Rules of Origin  
Additional Protocols  
  First (Dispute Settlement Mechanism ) 
  Second  (Text of the Certificate of Origin for products under tariff -rate quotas)  
  Third (Increased margin of preferen ce granted by Brazil to one tariff line ) 
 
 
 
3 Brazil has underlined the unilateral nature of this notification.  
4 Also in the LAIA context, information on this Agreement can be found in WT/COMTD/77, circulated on 
21 November 2012.  WT/COMTD/RTA7/1/Rev.1  
 
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  2.5.  The Parties will examine the possibility of progressive multilateralization to other LAIA members 
of the preferential treatment granted in the Agreement in the context of the sessions of the 
Conference on Evaluation and Convergence (Chapter X). As of December 2020,  this has not been 
the case.  
3  PROVISIONS ON TRADE IN GOODS  
3.1.  The provisions of the Agreement only apply to the products included in its Annex I.  
3.2.  Two other agreements under LAIA are also of relevance to preferential trade between Brazil 
and Mexico. These are the Regional Scope Agreement No. 4 (AAR.PAR No. 4) and the MERCOSUR -
Mexico Agreement  (AAP.CE  No. 55). The PAR 4 (in force since 1 July 1984) establishes the regional 
tariff preference; under its terms, Brazil and Mexico grant each other a 20% margin of preference 
(MOP) on the MFN rate. Under ACE 55 , automotive (light -vehicles) trade between Brazil and Mexico 
has been progressively liberalized and  is duty -free since mid -March 2019, following the expir y of 
bilateral quotas.  ACE 55 is in force bilaterally since 1 January 2003, with the bilateral provisions 
applicable between the two countries being included in its Appendix II.  
3.1  Import duties and charg es, and quantitative restrictions  
3.1.1   General provisions  
3.3.  Preferential treatment under the Agreement is granted through a MOP on the MFN tariff rate 
(Articles II.1 and II.2). The products being granted preferential treatment and the corresponding 
MOP are specif ied in Annex I to the Agreement; originally Brazil granted preferences for 767 lines 
and Mexico for 770 lines (at 8-digit Naladisa 1996 nomenclature) . With very few exceptions, the 
preferences are granted for the same products and the MOP is the same.  
3.4.  The Parties cannot unilateral ly decrease or eliminate the MOP granted under the Agreement, 
unless in the context of safeguard, anti -dumping or countervailing measures (Article II -4). In case 
a Party increases the MFN rate for products covered by the Agreement, negotiations may take place 
aiming at preserving the balance of concessions.  
3.5.  The Parties have agreed that national treatment applies in accordance with the disciplines of 
Article III of the GATT 1994 (Article III -1). 
3.6.  Article III-2 includes a general prohibition on the application of non -tariff barriers on  imports 
of all goods  of the other Party, unless these are WTO -compatible.  Upon request by one Party, the 
other Party is to provide  information on all measure s, restri ctions or prohibitions applied on the 
importation of goods  of export  interest  to the other Party . 
3.7.  The Agreement does not apply to used or remanufactured goods (Article I -4). 
3.1.2   Liberalization of trade and tariff lines  
3.8.  The MOPs granted under the Agreement are  between 20% and 100% (Table 3.1) . Tariff-rate 
quotas (TRQs) are also granted by both Parties: seven tariff lines in the case of Brazil and six in the 
case of Mexico. As shown in Table 3.1, there is almost full reciprocity in terms of the number of lines 
benefitting from the various MOP s, with almost half of the covered tariff lines becoming duty -free as 
from the Agreement's entry into force.  
3.9.  The preferences were fully i mplemented as from the entry into force of the Agreement. The 
Agreement foresees adding products to be liberalized or increasing the MOP; accordingly, in 2007 
Brazil increased the MOP for terephthalic acid and its salts (HS 2917.36.00) from 40% to 100%.  
Table 3.1 Preferences granted under Annex I to the Agreement   
Margin of 
Preference  Brazil  Mexicoa 
Number of lines  
(full or partial)  % lines  Number of  lines 
(full or partial)  % lines  
20% 63 8.2%  63 8.2%  
25% 26 3.4%  26 3.4%  WT/COMTD/RTA7/1/Rev.1  
 
- 8 - 
 
  Margin of 
Preference  Brazil  Mexicoa 
Number of lines  
(full or partial)  % lines  Number of  lines 
(full or partial)  % lines  
30% 126 16.4%  126 16.4%  
40% 26 3.4%  27 3.5%  
45% 6 0.8%  6 0.8%  
50% 92 12.0%  92 12.0%  
60% 50 6.5%  50 6.5%  
70% 16 2.1%  16 2.1%  
75% 1 0.1%  1 0.1%  
80% 10 1.3%  10 1.3%  
100% 345b 44.9%  346 45.0%  
TRQs 7 0.9%  6 0.8%  
Total  768 100.0%  769 100.0%  
a Including a few lines for which only the ad valorem  part of compound duties is reduced (respectively 
1, 4, 6 and 4 lines with MOPs of 20%, 30%, 50% and 100%).  
b Including one line for which the original MOP was 40% but which was subsequently increased to 
100%.  
Note:  Based on the Agreement's original Naladi sa 1996 nomenclature.  
Source:  Brazil's "Secretaria Especial de Comércio Exterior e Assuntos Internacionais" (SECINT) website.5 
3.10.   The Factual Presentation presents liberalization by the Agreement in 2018, using HS2017 
nomenclature for Brazil and HS2012 for Mexico.6 Table 3.2 summarizes the liberalization under the 
Agreement using the 2018 MFN tariffs, while Tables 3.3 and 3.4 provide additional information on 
each Party 's liberalization, and also relating it to 2015-2017 import data.  
3.11.   Table 3.2 shows that tariff preferences  are granted on around 12%  of the Parties' tariff lines. 
In light of each Party's MFN tariff structure, however, the preferential nature of the concessions 
differ: in the case of Brazil, 6.9% of these lines were already MFN duty -free in 2018 while for Mexico 
65.7%  were duty free .7 Thus, in practice, in 2018 Mexico benefitted from preferential treatment in 
11.2% of Brazil's schedule, while the corresponding figure for Brazil was 4.2%.  
Table 3.2 Summary of the Agreement's tariff commitments  compared to MFN 2018  
Tariff elimination and reduction  Brazil (HS 2017)  Mexico (HS 2012)  
Tariff lines covered under the Agreement  1,238 (12. 1%) 1,530 (12.2%)  
Of which:    
   MFN duty-free 86 1,005  
  Fully liberalized  397 178 
  Reduced rates ( full products)   672 285 
  Reduced rates ( partial products)  83 62 
Source:  WTO estimates based on the WTO -IDB, Brazil's SECINT website and data submitted by the Mexican 
authorities.  
3.12.   In 2018, Brazil's applied MFN tariff included 725 duty-free tariff lines (7.1% of the tariff 
schedule)8, corresponding to 6.3% of its imports from Mexico during 2015 -2017. I n 2018, under the 
Agreement Brazil granted Mexico duty -free treatment for  an additional 397  tariff lines (3.9%) , 
accounting for 9.6% of Brazil's imports from Mexico.  In addition, preferences falling short of duty -
free were also granted to Mexico , for 672 products/tariff lines in full and for parts of another 83 
products  (7.3% of tariff lines)9; these products in 2015 -2017 accounted for  4.4% of imports from 
Mexico. Overall, imports from Mexico into Brazil faced dutiable MFN tariffs on around four -fifths of 
Brazil's tariff lines and bilateral imports . 
 
5 Viewed at http://www.mdic.gov.br/arquivos/ace53anexo1.pdf . 
6 Successive transpositions from Naladisa 1996 to HS2012 and HS2017 were made on the basis of 
concordance tables supplied by the Parties or available in the LAIA website.  
7 The situation might however have been different at the time of the conclusion of the Agreement.  
8 In 2018, Brazil 's applied MFN tariff consisted of 10,278 lines at the eight -digit level, all of which were 
subject to ad valorem  rates of duty.  
9 For example, in HS 2009.90.00, the MOP on mixture of juices only  apply to those not containing 
orange juices . WT/COMTD/RTA7/1/Rev.1  
 
- 9 - 
 
  Table 3.3 Brazil - Tariff elimination and reduction commitments under the Agreement 
and corresponding average trade  
Duty phase out  Number 
of lines  % of total lines 
in Brazil's tariff 
schedule  Brazil's imports from Mexico  
(2015 -2017)  
Value  
(USD Million)  % 
2018 MFN  (duty free ) 725 7.1 254.2  6.3 
Tariff elimination /reduction      
 2018 (duty free)  397 3.9 389.0  9.6 
 Remain dutiable  9,156  89.1 3,404.9  84.1 
Of which:      
 Reduced rates , products  in full  672 6.5 151.1  3.7 
 Reduced rates, part of productsa 83 0.8 28.2 0.7 
   Duty-free ex -outs 40 .. .. .. 
   Reduced rates ex -outs  43 .. .. .. 
   Excluded ex -outs 83 .. .. .. 
Excluded from the Agreement  8,401  81.8 3,225.6  79.7 
Total  10,278  100.0  4,048.0  100.0  
a Parts of these 83 products /tariff lines benefit from preferential duty -free or reduced rates. They include  
166 ex -outs (parts), of which 40 are fully liberalized, 43 benefit from  reduced rates while 83 are 
excluded from liberalization.  
.. Not available.  
Note: Based on the HS2017 nomenclature.   
 Tariffs and import data for HS Chapters 1 -97. 
Source:  WTO estimates based on the data in the WTO -IDB and Brazil's SECINT website.  
3.13.   In 2018, Mexico 's tariff schedule had 7,17 2 MFN duty -free tariff lines (57.2% of the 
schedule)10; 59.7% of imports during 2015 -2017 from Brazil  entered under this regime. In 2018 
under the Agreement, an additional 178  lines ( 1.4% of t he schedule ) were duty -free, allowing an 
additional 0.6% of imports from Brazil  to enter on a duty -free basis. In addition, preferences falling 
short of duty -free were also granted to Brazil, for 285 products/tariff lines in full and for parts of 
another 62 products (2.8% of tariff lines)11; these products in 2015 -2017 accounted for 1.9% of 
imports from Brazil . Overall, imports from Brazil into Mexico faced dutiable MFN tariffs on around 
two-fifths of Mexico's  tariff lines and bilateral imports.  
Table 3.4 Mexico Tariff elimination and reduction commitments under the Agreement 
and corresponding average trade  
Duty phase out  Number of 
lines  % of total lines 
in Mexico's 
tariff schedule  Mexico's imports from Brazil  
(2015 -2017)  
Value  
(USD Million)  % 
2018 MFN (duty free)  7,172  57.2 2,701.9  59.7 
Tariff elimination /reduction      
 2018 (duty free)  178 1.4 26.2 0.6 
 Remain dutiablea 5,186  41.4 1,794.9  39.7 
Of which:      
 Reduced rates, products in full  285 2.3 66.3 1.5 
 Reduced rates, part of productsb 62 0.5 16.2 0.4 
   Duty-free ex -outs 38 .. .. .. 
   Reduced rates ex -outs  43 .. .. .. 
 
10 In 2018, Mexico's applied MFN tariff contained 12, 536 8-digit lines  of which 80 lines were non -
ad valorem  (specific, compound or prohibited).  
11 For example, in HS 200 5.99.99 - other vegetables and their mixtures - the MOP is granted for all 
products except artichoke s. WT/COMTD/RTA7/1/Rev.1  
 
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  Duty phase out  Number of 
lines  % of total lines 
in Mexico's 
tariff schedule  Mexico's imports from Brazil  
(2015 -2017)  
Value  
(USD Million)  % 
   Excluded ex -outs 56 .. .. .. 
Excluded from the Agreement  4,839  38.6 1,712.4  37.8 
 12,536     
a  Including 22 prohibited lines.  
b Parts of these 62 products/tariff lines benefit from preferential duty -free or reduced rates. They 
include  137 ex -outs (parts), of which 38 are fully liberalized, 43 benefit from reduced rates while 56 
are excluded from lib eralization.  
.. Not available.  
Note:  Based on the HS2012 nomenclature.  
 Tariffs and import data for HS Chapters 1 -97. 
Source:  WTO estimates based on the data submitted by the Mexican authorities and the WTO -IDB. 
3.1.3   Liberalization schedule  
3.1.3.1   Brazil  
3.14.   Table 3. 5 details Brazil's tariff elimination/reduction under the Agreement by HS Section. The 
majority of lines either fully or partially liberalized are in Section  VI, namely products of the chemical 
and allied industries. Its MFN average rate (for all products a nd not only those covered by the 
Agreement) was around 6.8% in Brazil  while the average dutiable rate for chemicals from Mexico is 
6.5%. Sections XVI (machinery) and VI I (plastics) also account for a number  of preferen ces granted 
for imports from  Mexico.  The average final dutiable tariff varies from 3.4% in Section V (minerals) 
to 25.4% in Section XII (footwear).  
Table 3.5 Brazil: Tariff elimination /reduction commitments under the Agreement , by HS 
Section  
HS 
Section  MFN 
Average  
% Number 
of lines  Duty -free lines  Remain dutiable under the 
Agreement  Avg. Final 
Tariff  
(Dutiable)  MFN 
2018  Under the  
Agreement  Dutiable  Of which, 
reduced ratesa 
I 9.4 520 35  485  1 10.0 
II 7.7 411 69 25 317  7 9.3 
III 9.5 74   74  1 9.5 
IV 15.1 322  19 303  80 13.5 
V 2.4 208 69 13 126  12 3.4 
VI 6.8 3,035  101 184 2,750  324 6.5 
VII 11.2 431 4 6 421  114 10.3 
VIII 11.5 113   113  11.5 
IX 7.9 157   157  7.9 
X 11.2 222 10 2 210  2 11.8 
XI 25.4 1,055    1,055  50 25.2 
XII 25.4 70   70  1 25.4 
XIII 10.7 217 2 8 207  25 10.6 
XIV 9.6 64 6 4 54  2 10.5 
XV 11.9 738 12 27 699  12 12.2 
XVI 11.7 1,771  296 97 1,378  74 13.7 
XVII 18.2 230 33 7 190  2 21.3 
XVIII 12.5 450 84 3 363  17 15.0 
XIX 20.0 18   18  20.0 
XX 19.2 165 4 2 159  31 18.6 
XXI 4.0 7   7  4.0 
Total  11.6 10,278  725 397 9,156  755 12.2 
a  Number of tariff lines with reduced rates  and which apply to products in full or  to parts of products .  
Note:  Based on the HS2017 nomenclature.  
Source:  WTO estimates based on the data in the WTO -IDB and Brazil's SECINT website.  
 WT/COMTD/RTA7/1/Rev.1  
 
- 11 - 
 
  3.15.   Chart 3.1 presents  the average preferential and MFN duty rates in 46 Chapters in which 
preferences are granted. Among the 1,152 dutiable  lines (MFN 2018) covered by the Agreement, 
photographic or cinematographic goods of Chapter 37  benefit from the highest  average  MOP with 
the average p referential tariff at 5.2% compared to the MFN average of 9.5% . Among industrial 
products the highest MOP s are also found in toys of Chapter 95 as well as other chemicals. For 
agricultural products, the highest MOP s are found in Chapter s 20-22 (preferentia l rates ranging from 
11.8% to 17.8% compared to average MFN rates of  14.8% to 19.8% ). No preferences are granted 
in the remaining 51 HS Chapters.  
Chart 3.1 Brazil: Average of dutiable rates, by selected HS Chapter  and Sectio n 
 
Note:  Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on the data from WTO -IDB and  Brazil's SECINT  website.  
3.1.3.2   Mexico  
3.16.   Mexico's tariff elimination/reduction under the Agreement by HS Section is depicted in 
Table 3.6. The majority of lines fully liberalized are vegetables of HS Section II, while the highest 
number of lines partially liberalized correspond to chemicals of Section VI. The HS Sections having 
the lowest and highest average final dutiable tariff s are the same as for Brazil - 5.8% in Section V 
(minerals) and 19.2 % in Section XII (footwear).  
Table 3.6 Mexico: Tariff elimination /reduction commitments under the Agreement, by 
HS Section  
HS 
Section  MFN 
Average  
% Number 
of lines  Duty -free lines  Remain dutiable under the 
Agreement  Avg. Final 
Tariff  
(Dutiable)  MFN 
2018  Under the  
Agreement  Dutiable  Of which, 
reduced ratesa 
I 15.7 439 62  377  3 18.3 
II 11.7 519 117 62 340  10 15.0 
0%5%10%15%20%25%30%35%40%
05
08
09
12
15
16
17
19
20
21
22
23
25
26
27
28
29
32
33
34
35
36
37
38
39
40
47
54
55
59
62
65
68
70
71
74
79
81
82
83
84
87
90
94
95
96
IIIIII IV V VI VIIX XI XIII XV XVI XXAverage tariffHundreds
HS Chapter & Section
MFN Preferential
XII  
XIV  
XVII  
XVIIIWT/COMTD/RTA7/1/Rev.1  
 
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  HS 
Section  MFN 
Average  
% Number 
of lines  Duty -free lines  Remain dutiable under the 
Agreement  Avg. Final 
Tariff  
(Dutiable)  MFN 
2018  Under the  
Agreement  Dutiable  Of which, 
reduced ratesa 
III 8.5 72 17  55  2 11.1 
IV 18.4 356 31 19 306  64 18.7 
V 0.3 219 211  8  4 5.8 
VI 1.4 2,865  2286 58 521 103 6.2 
VII 3.8 570 347  223  44 9.0 
VIII 4.8 124 92  32  19.0 
IX 6.7 188 66  122  10.3 
X 2.8 311 182  129  6.7 
XI 13.3 1,422  159  1,263  39 14.9 
XII 17.1 167 18  149  1 19.2 
XIII 5.8 313 161  152 18 11.8 
XIV 3.3 65 47 2 16  1 11.9 
XV 3.8 1,268  861  407  9 11.8 
XVI 2.7 2,492  1901 16 575  8 11.5 
XVII 7.6 402 200 13 189  7 14.9 
XVIII 2.6 450 319 3 128  8 8.7 
XIX 11.2 33 2  31  11.9 
XX 8.9 247 79 5 163  26 12.5 
XXI 0.0 14 14     
Total  5.7 12,536  7,172  178 5,186  347 13.1 
a Number of tariff lines with reduced rates and which apply to products in full or to parts of products.  
Note:  Tariff line count includes 22 prohibited lines which are from HS Sections I, II, VI, VIII and X. These 
lines are however excluded from the calculat ion of the average final dutiable tariff.  For the calculation 
of averages, specific rates are excluded, and the ad valorem  parts of alternate rates are included . 
 Based on the HS2012 nomenclature.  
Source:  WTO estimates based on data submitted by the Mexic an authorities and the WTO -IDB. 
3.17.   Chart 3.2 presents  the average MFN and preferential duty rates of 43 Chapters in which 
preferences are granted.  Among the 525 dutiable lines (MFN 2018) covered by the Agreement, the 
highest average MOP is in preparations of vegetables and edible preparations of Chapters 20 and 21  
(average preferential rates of 16.6%  and 15.5% compared to average MFN rate s of 20% an d 
18.3% ). For industrial products , the highest MOP s are found in chemicals of HS Section VI , in 
particular  Chapters 35 (albuminoidal substances) and 37 (photographic or cinematographic goods) 
(with average preferential rate s of 4.5% and 4.4% compared to th e MFN rate s of 6.2%  and 6%). 
No preferences are granted in the remaining 54 Chapters.   WT/COMTD/RTA7/1/Rev.1  
 
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  Chart 3.2 Mexico: Average of dutiable rates, by selected HS Chapter and Section  
 
*  Tariff lines subject to import prohibition only.  
Note:  Including 22 prohibited lines from HS Sections I, II, VI, VIII and X. For the calculation of averages, 
prohibited lines and specific rates are excluded, and the ad valorem  parts of alternate rates are 
included.  
 Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on the data submitted by the Mexican authorities and the WTO -IDB. 
3.1.4   Tariff rate quotas  
3.18.   Table 3.7 provides detailed information on the tariff -rate quotas (TRQs) that are exchanged 
under the Agreement. The Parties grant each other TRQs on six industrial products; for two products, 
the in -quota rate is free while for the oth er four the MOP ranges from 50% -70% of the MFN rate on 
the in -quota duty and from 20% -40% of the MFN rate for the out of quota duty. In addition, Brazil 
grants Mexico a seasonal TRQ on garlic, with a duty -free in -quota rate.  
Table 3.7: TRQs under the Agreement  
Product  Annual Quantity (metric tonnes) Quota Rate  
In-quota  Out-of-quota  
Brazil only  
Garlic  
  0703.20.00  1,300, from 01/03 -15/07  Free MFN 
Brazil and Mexico  
Sodium sulphides  
  2830.10.00  6,000  Free 40% MOP  
Dimethyl terephthalate  
  2917.37.00  35,000  Free 20% MOP  
Pigments and preparations based 
on titanium dioxide  
  3206.11.00  20,000  
15,000 for products with an average 
particle size of 6 microns or greater, 
with the addition of modifiers  50% MOP  30% MOP  
0%5%10%15%20%25%30%35%
05
07
08
09
15
17
19
20
21
22
23
25
27
28
29
30
32
33
34
35
36
37
38
39
40
54
55
59
62
65
68
70
71
74
82
83
84
85
87
90
94
95
96
IIIIII IV V VI VII XI XIII XV XVI XXAverage tariffHundreds
HS Chapter & Section
MFN Preferential
XVII     
XVIII XII
XIVWT/COMTD/RTA7/1/Rev.1  
 
- 14 - 
 
  Product  Annual Quantity (metric tonnes) Quota Rate  
In-quota  Out-of-quota  
Polystyrene of general use (GPPS)  
  3903.19.10  4,000 60% MOP  25% MOP  
Polyethylene terephthalate  
  3907.60.00  6,000 70% MOP  25% MOP  
Other plates, sheets, film, foil and 
strip of polypropylene  
  3920.20.10  2,000 60% MOP  30% MOP 
Source:  Annex I of the Agreement.  
3.2  Rules of origin  
3.19.   Rules of origin are set out in Chapter IV. The basic requirements for a good to be considered 
originating, as in Article IV-5, are:  
a. the good is wholly obtained or produced entirely in the territory of one or both of the 
Parties;  
b. the good is produced entirely in the in the territory of one or bot h of the Parties from 
originating materials only; or  
c. the good is produced entirely in the territory of one or both of the Parties by using 
non-originating materials which comply with the specific rules of origin in Annex  II to the 
Agreement,  as follows:  
i. it goes through a change in tariff classification (CTC) and complies with other 
requirements, or  
ii. it goes through a CTC and complies with other requirements, and the value of non -
originating materials is below a threshold , or 
iii. the value of non -originating mate rials is below a threshold  and the good complies with 
other requirements,  and 
iv. the material undergoes a particular production process (applied on chemical products 
of Chapter 29).  
3.20.   The main criterion for a good produced by using non -originating materials to acquire 
originating status is a CTC. The CTC applies generally at the HS heading level, but requirements at 
the subheading and chapter levels are also used. Article IV-15 provides a  list of non -qualifying 
operations that do not confer origin.  
3.21.   The granting of originating status based on regional value  content (RVC) makes use of a 
maximum import content, set generally at 50% and in fewer cases at 40%. Article IV-6 provides for 
the RVC to be calculated either on the basis of the transaction  value  or using the other methods 
provided for in the WTO Agreement on Implementation of Article VII of the GATT 1994 . Non-
originating materials are adjusted to a c.i.f. basis, while the final product is valued on a f.o.b. basis.12  
3.22.   Bilateral cumulation applies between the two Parties (Article IV-9); possible extension to total 
cumulation is envisaged.  Negotiations to update the provisions on matters of origin, including on 
"accumulation", have been carried out; however, as of Decembe r 2020 they have not been finalized. 
Due to the above, the aforementioned provision remains the same.  The absorption principle - i.e. 
the value  of non -originating materials incorporated in another good that has acquired originating 
status is not added into  the RVC calculation - also applies (Article IV-6), including in cases where it 
is designated as an " intermediate material ". However, when an intermediate material is subject to 
the RVC requirement , its benchmark is set at 50 % and no other self -produced ma terial subject to 
 
12 Paragraph c. details elements to b e included in the adjusted value of non -originating materials.  WT/COMTD/RTA7/1/Rev.1  
 
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  an RVC requirement used in the production of that intermediate material may itself be designated 
by the producer as an intermediate material (Article  IV-8). 
3.23.   A de minimis  rule (Article IV-7) applies so that the good is considered originating if the  value  
of all non -originating materials that do not comply with the required CTC is less than 7% of the 
transaction  value  adjusted to a cif basis . In the case that the same good is subject to a RVC 
requirement, that  value  would be counted  towards the RVC and any additional requirement will apply 
without any change. De minimis  rules do not apply to  textiles in HS Chapters 50 to 63  nor to a 
non-originating material used in the production of goods of Chapters 1 to 27, unless the material is 
of a different subheading than the one for which origin is being determined.  
3.24.   No outward processing is authorized under the Agreement. Transit through non -parties, with 
or without transhipment, is authorized provided  that the good remains under the control o r 
surveillance of the ir customs authorities; if transit is justified for geographical or transportation 
reasons ; the good is not traded or used in the transit country; and no processing takes place outside 
the territory of the Parties other than loading, u nloading or any other operation necessary to 
preserve it in good condition or to transport it (Article IV-18). 
3.25.   A Working Group on Rules of Origin and Customs Procedures is established (Article IV -34). 
Box 3.1 Rules of origin at a glance  
Basic Characteristics  
 
• Product -specific general criteria:  
o  Wholly obtained goods  
o  CTC, generally a change of heading  
o  RVC- maxim um import content  of generally 50% (40% in few cases)  
 
• Bilateral cumulation.  
 
• Tolerance rules.  
 
• No outward -processing authorized.  
 
3.3  Export duties and charges, and quantitative restrictions  
3.26.   The Agreement does not have provisions on export duties. Article III -2 includes a general 
prohibition on the application of non -tariff barriers on exports of all goods to the other Party, unless 
these are WTO -compatible.  
3.4  Regulatory provisions of the agreement  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.27.   Sanita ry and phytosanitary measures are addressed in Chapter IX. These issues will be 
regulated by the WTO Agreement on Sanitary and Phytosanitary Measures (SPS Agreement). The 
"Complementary Agreement to the Basic Convention of Scientific and Technical Cooperat ion on 
Animal Health ", signed between Brazil and Mexico in 1997, is incorporated into the Agreement  
(Articles IX -1 to IX -3).13 
3.28.   Sanitary and phytosanitary measures shall be established only to the extent necessary to 
achieve adequate level s of sanitary or phytosanitary protection  in the Parties , taking into account 
the technical and economic feasibility of their application. The Parties may adopt or maintain any 
measure that offers a higher level of protection than what would be achieved thr ough international 
 
13 The text of the Basic Convention can be found in 
https://aplicaciones.sre.gob.mx/tratados/ARCHIVOS/BRASIL -COOP.%20CIENTIFICA%20Y%20TEC.pdf . The 
text of the Complementary Agreement can be found in 
https://www2.camara.leg.br/legin/fed/decret/1998/decreto -2549-15-abril-1998-400720 -publicacaooriginal -1-
pe.html  (Portuguese only ). WT/COMTD/RTA7/1/Rev.1  
 
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  regulations, principles or recommendations , provided these are based on scientific justification and 
the procedures of the SPS Agreement are followed . The Parties commit:  
a. to ensure  that the sanitary or phytosanitary measures they apply do not constitute 
unjustified obstacles to trade;  
b. to base their sanitary and phytosanitary measures on a risk assessment adequate for the 
circumstances, taking into account the guidelines and techniques of the competent 
international organizations; and  
c. to base their procedures for the recognition of equivalence  of SPS measures and of control 
and approval procedures on the practices established by the relevant  international 
organizations.  The importing Party will be provided, upon request, reasonable access for 
inspections, tests and other relevant procedures.  
3.29.   The Parties' recognition of pest - or disease -free areas or areas of low pest or disease 
prevalence are to be based on criteria and procedures that are compatible with that established in 
the SPS Agreem ent. The Chapter also foresees the conclusion of agreements to facilitate imports of 
agricultural products originating from these areas (Articles IX -9 to IX -11). 
3.30.   The Parties are to establish enquiry points for the exchange of information and technical 
cooperation ( Article  IX-15). The ir competent authorities will meet, as needed, to evaluate the 
implementation of th e Chapter and report its findings to the Agreement's Commission. The Parties'  
authorities and the Commission may establish ad hoc  working groups to examine and propose 
solutions to sanitary and phytosanitary problems that may arise as regards the access of agricultural 
products to a Party's market . As of December 2020, no modification has been made to this Chapter 
and no working gro up has been  established . Finally, a Party may request that technical consultations 
be held aimed at obtaining information of sanitary and phytosanitary  applied by the other Party; the 
Chapter does not however provide t imeframes for these consul tations (Art icles IX -17 to IX -19). 
3.4.1.2   Technical barriers to trade  
3.31.   Chapter VIII applies to standards, technical regulations and conformity assessment 
procedures applied by the Parties that may affect, directly or indirectly, trade in goods or services. 
These issues will b e regulated by the WTO Agreement on Technical Barriers to Trade (Articles  VIII-
2). The Chapter does not apply to SPS measures.  
3.32.   The Parties remain free to adopt  a level of protection that is appropriate to fulfil their 
legitimate objective s; standardization  measure s shall not have the goal of creating unnecessary 
obstacles to trade (Article VIII-3).  
3.33.   Transparency provisions are contained in Articles VIII -4 and VIII-5. The adoption of new or 
modification of existing standardization measures is to be notified in writ ing to the other Party at 
the time of its notification to the WTO and no later than to its own nationals . Such notification  is not 
required for measures that have the character of law or regulations of law. Moreover and u pon 
request from the other Party, the Party is to provide information on standards, technical regulations 
and conformity assessment procedures being applied or under development.   
3.34.   The Chapter also includes provision s on technical cooperation and assistance with relation t o 
all these measures (Articles VIII -6 and VIII -7). Upon request, the Parties are to meet as soon as 
possible following such request in order to address particular issues regarding measures that may 
affect trade between the Parties, technical cooperation ac tivities, negotiation of mutual recognition 
agreements or any other standards -related matter  (Article VIII -8). 
  WT/COMTD/RTA7/1/Rev.1  
 
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  3.4.2   Safeguard mechanisms  
3.4.2.1   Global safeguards  
3.35.   The Parties reaffirm their rights and obligations under the WTO Agreement on Safeguards and 
Article XIX of the GATT 1994 (Article V -2). 
3.4.2.2   Bilateral safeguards  
3.36.   The Agreement authorizes the application of bilateral safeguard measures. The c riteria and 
conditions are spelled out in Articles V -3 to V -21 of the Agreement , as follows:  
a. safeguards are appl ied only to the extent necessary to prevent or repair serious injury 
resulting from unforeseen developments and as a result of the tariff preferences, and to 
facilitate the adjustment of the domestic industry;  
b. safeguard measures shall consist of a temporar y suspension or reduction of the preference 
under the Agreement for an initial duration of one year , with a possible extension of 
another year. The maximum duration shall not exceed two years ;  
c. in order to avoid trade disruption, a TRQ shall be opened at the same time as  the safeguard  
measure. The TRQ quantity will be equivalent  to the average  imports in the three-years 
preceding the injury determination , unless a clear justification is provided that a different 
level is needed to prevent or repair the seri ous injury , with the in -quota rate being the 
actual preferential rate ; 
d. upon the termination of the safeguard measure, the preferential rate shall be reinstated; 
and  
e. an illustrative list of elements to be taken into account in the investigation are spelled out 
in Article s V-11 to V -14. In particular, Article V -12 specifies th at any request for the 
imposition of safeguard measures has to be made  by producers that represent collectively 
at least 50% of the domestic production of like or directly competitive products .  
3.37.   Investigation and transparency procedures are contained in Ar ticles V-15 to V -20. While some 
timeframes are provided for , the maximum period between the publication of the decision to initiate 
the investigation and the final decision  is not specified  
3.38.   Provisional safeguards of a maximum of 180 days (200 days in the W TO Agreement ) may be 
applied  in critical circumstances and pursuant to a preliminary determination of serious injury or 
threat thereof. Transparency is ensured by requiring the importing Party to notify the exporting 
Party within 10 days from publication o f the decision to initiate an investigation, and 30 days prior 
to its application of the decision to apply a provisional safeguard . The intention and the decision to 
apply or extend a safeguard measure  shall also be notified, but no time -frame is specified  in the 
Agreement; relevant WTO requirements refer to prompt notifications to the Committee on 
Safeguards. Adequate opportunity for consultation shall be provided  (Article V -20) an d disciplines  
regarding compensation are spelled out in Article V -21. 
Anti-dumping and countervailing measures  
3.39.   Chapter VI  deals with unfair trade practices. The application of anti -dumping and 
countervailing measures will be in accordance with t he relevant WTO Agreements – namely the GATT 
1994, and the Agreements on the Implementa tion of Article VI of the GATT 1994 and on Subsidies 
and Countervailing Measures , in accordance with their respective national legislation s (Article VI -1).  
3.40.   Article VI -2 provides for consultations in cases where a Party considers that the other Party 
is carrying out imports from a third country that may be dumped or subsidized and  that affect its 
exports. In the case of dumping, th e affected Party may request the initiation of a n anti-dumping 
investigation against the third -country. The other Party will give adequate consideration to any 
request for consultation through the Agreement's Administrative Commission and reply within fifteen WT/COMTD/RTA7/1/Rev.1  
 
- 18 - 
 
  working  days. The  Adminis trative Commission will be kept informed of development s and 
conclusions of the consultations .  
3.4.4   Subsidies and State -aid 
3.41.   The Agreement has no provision on subsidies and State -aid. 
3.4.5   Customs -related procedures  
3.42.   Customs procedures are dealt with in Chapter IV. T he format for the Declaration and 
Certificate of Origin (Article IV -19) is that adopted in the context of LAIA14, while that for products 
imported under TRQs is the subject of the Second Additional Protocol to the Agreement . The 
Declaration of origin is filled in and signed by the exporter or the producer,  and upon that basis, the 
Certificate of Origin  is signed by government bodies or their delegated authorities .15 The Certificate 
of Origin is to be issued within five working days from its request and has a duration of 180 days  
from its signature (Article  IV-22). The preferential tariff treatment in only granted upon the 
presentation of a Certificate of Origin.  
3.43.   Article IV -24 clarifies that goods maintain their originating status even if invoices are provided  
by operators from non -parties. The o bligations with respect to exports, included in Article IV -25, 
address , in particular , the need to ensure the accuracy of the information and juridical consequences 
in case of false declaration.  
3.44.   Rules relating to v erification and control of the origin of a good are contained in Article s IV-
27 to IV-30; they specify that t he competent authorities of the importing Party may : 
a. request additional information from the competent authorities of the exporting Party, with 
that information being submitted within 120 days , failing which  preferential treatment may 
be denied ; 
b. submit a written questionnaire  to the exporter or producer, to be answered within 30 days 
from the date of receipt, extendable by 30 days upon request . In cases where the exporter 
or producer do not reply or return the questionnaire within the specified timeframe, the 
importing Party may deny preferential tariff treatment further to a decision to that effect ; 
or 
c. request a visit to the premises o f the exporter or producer, following  advance notice of at 
least 30 days. A visit from the importing Party's authorities shall be preceded by a written 
notice, to be sent to the exporter or producer to be visited and to the competent authorities 
of the exporting Party . If the exporter or producer do es not confirm the visit within 30 
days from receipt of the notification, the importing Party may deny preferential tariff 
treatment subject to verification, upon a decision to that effect . The visit may however be 
postponed for a maximum period of 60 days without negatively impacting the result of the 
verification. The Parties may nominate observers  to be present during the verification.  
3.45.   The conclusion of the verification shall provide the exporter or producer the result of the 
verification, through a written resolution that will include issues of fact and its legal basis. If 
originating status is denied, the importing party may apply sanctions in accordance with the 
Agreement and its domest ic legislation. In cases where the exporter or producer has provided more 
than once false or incorrect information on the good's origin, the importing Party may suspend 
preferential tariff treatment of identical goods from the same exporter or producer unt il such time 
as it can prove that it fulfils the requirements of Chapter IV. The Chapter also provides for review 
and appeal of the determination.  
 
14 See Annex 4 of the following links: in Spanish, see 
http://www2.aladi.org/nsfaladi/Juridica.nsf/vresolucionescomite/D207FACADE7AF87B032567CC00555F7F/$FIL
E/252.pdf ; in Portuguese, see http://www.mdic.gov.br/arquivos/dwnl_1351703854.pdf . 
15 The list of these bodies/authorities can be found in http://www.aladi.org/sitioaladi/?page_id=422  
(LAIA website); Mexico's list can be found in http://www2.aladi.org/nsfaladi/ firmas.nsf/v1paisesR/mexico .  WT/COMTD/RTA7/1/Rev.1  
 
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  4  GENERAL PROVISIONS OF THE AGREEMENT  
4.1  Transparency  
4.1.  In addition to a number of transparency provisions throughou t the Agreement and referred to 
elsewhere in the Factual Presentation , Chapter XI (Administration of the Agreement) details some 
provisions related to transparency.  
4.2.  Under Article XI -1, each Party will designate a government authority to facilitate 
communic ation between the Parties on any matter covered by the Agreement.16  
4.3.  Each Party shall notify, to the extent possible, the other Party of any law, regulation or provision 
that it considers could affect or substantially affect the interests of that other Par ty and shall, upon 
request of the other Party, provide information regarding any measure in force in its territory that 
concerns the implementation of the Agreement. Any such notification or provision of information is 
without prejudice to the compatibilit y of the measure with the Agreement  (Article XI -2). 
4.2  Current payments and capital movements  
4.4.  The Agreement has no provision s concerning payments and movement of capital.  
4.3  Exceptions  
4.5.  The Agreement has no provision for exceptions.  
4.4  Accession and withdrawal  
4.6.  The A greement is open for accession from other LAIA members, subject to negotiations to be 
included in an additional protocol to the Agreement (Chapter XV). Entry into force will take place 30 
days following its deposit with the LAIA Secretariat.  
4.7.  Either Party c an terminate the Agreement. Such termination will take effect 180 days after 
notification to the other Party (90 days for communication to the other Party, and a 90 day period 
following the deposit with the LAIA Secretariat of the withdrawal document).  
4.5  Institutional framework  
4.8.  The Agreement's main body is the Administrative Commission, established in accordance with 
Article XIII -1. The Commission consists of representatives of Brazil's Sub -Secretary General for 
Economic Integration Affairs and Foreign Tra de of the Ministry of Foreign Affairs, and for Mexico the 
Sub-Secretary of International Trade Negotiations of the Secretary of Economy, or their 
representatives. Among the main tasks of the Commission are ensuring compliance with the 
provisions of the  Agreement; recommend ing modifications to the Agreement ; present ing periodic 
reports on the functioning of the Agreement ; and establish ing working groups as needed.  
4.6  Dispute settlement  
4.9.  In accordance with what w as foreseen in the Agreement's Chapter XII, the First Additional 
Protocol (in force since 2006) establishes a mechanism for dispute settlement  related to the 
interpretation, application or non -compliance with the provisions of the Agreement .  
4.10.   The Protocol provides that for issues also regulated by the WTO, the choice of forum is to be 
made by the complaining party. Once the forum has been selected, it must be used to the exclusion 
of the other; this provision does not apply in cases where a Party invokes di fferent bas es under the 
WTO Agreement and the Agreement . The Protocol also establishes that before initiating a dispute 
under the WTO, the complaining Party shall endeavour to the greatest extent possible to 
communicate its intention to do so to the other Party. A case is considered to be initiated when a  
request for the establishment of a panel under Article 6 of the WTO Dispute Settlement 
 
16 These are : for Brazil, the Department of Latin American integration of the Ministry of F oreign Affairs, 
and for Mexico the LAIA's General Directorate of the Secretary  of Economy , or their successors.  WT/COMTD/RTA7/1/Rev.1  
 
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  Understanding, or of an ad hoc  Group of Experts under Article 7 of the Protocol  is made  (Articles 1 
and 2 of the Proto col). 
4.11.   The Parties will endeavour to resolve through consultations any matter described in Article  1 
(Article 3 of the Protocol). If these fail after 45 days from receipt of the request for initiating 
consultations17, the complaining Party can request the establishment of  an ad hoc  Group of Experts 
(Articles 7 and 11 of the Protocol)18, selected from the roster of experts presented by each Party.19 
The Group of Experts will submit a report to the Commission within 120 days from the date of its 
establishment (Article  16 of the Protocol). The Commission will meet to consider the report within 
20 days following its receipt; in the absence of a meeting, the report will be considered as adopted 
(Article 17 of the Protocol). Such automatic adoption would also occur in cases where the 
Commission cannot agree on a satisfactory solution within 15 days from its meeting (Article 18 of 
the Protocol). If following 30 days from the adoption of the Report the Party fails to comply with  its 
conclusion, the complaining Party can adopt temporary compensatory measures (including the 
suspension of concessions) upon prior communication to the other Party (Article 20 of the Protocol). 
The suspension of benefits shall apply until the Party comp lained against has complied or until the 
Parties reach a mutual satisfactory agreement (Article 21 of the Protocol).20 Upon request by a Party, 
the Commission will establish within 15 days a Special Group of Experts to determine whether the 
level of benefi ts suspended is clearly excessive. This Group will present its final decision within 60 
days from its constitution, unless the Parties agree otherwise (Articles 23 and 24 of the Protocol).  
4.7  Relationship with other agreements concluded by the Parties  
4.12.   The Ag reement is signed under the framework of the LAIA TM80  (Preamble).  
4.13.   Other regional trade agreements to which Brazil and Mexico are Parties (including notified 
and non -notified agreements) are listed in Table 4.1 . 
Table 4.1 Brazil and Mexico:  Participation in other RTAs (notified and non -notified in 
force), as of 9 November  2020  
RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year21 WTO Provisions  
BRAZIL 
MERCOSUR - Egypt  01-Sep-17 Goods  2018 Enabling Clause  
MERCOSUR - Southern African 
Customs Union (SACU)  01-Apr-16 Goods  2017 Enabling Clause  
Brazil - Venezuela  
[LAIA, AAP.CE 69]  14-Oct-14 Goods  2020 / 2013   
 Enabling Clause - Changes to 
LAIA TM 80  
MERCOSUR - Israel  23-Dec-09 Goods  2019 GATT Art. XXIV  
MERCOSUR - India 01-Jun-09 Goods  2010 Enabling Clause  
MERCOSUR - Cuba  
[LAIA, AAP.CE 62]  02-Jul-07 Goods  2020 / 2009   Enabling Clause - Changes to 
LAIA TM 80  
Brazil - Suriname  
[LAIA, AAP.A25 TM 41]  26-Jul-06 Goods  2020 / 2006  Enabling Clause - Changes to 
LAIA TM 80  
MERCOSUR - Peru  
[LAIA, AAP.CE 58]  02-Jan-06 Goods  2020 / 2006  Enabling Clause - Changes to 
LAIA TM 80  
MERCOSUR - Andean 
Community (except 
Plurinational State of Bolivia 05-Jan-05 Goods  2020 / 2006  Enabling Clause - Changes to 
LAIA TM 80  
 
17 In cases of urgency, i n particular when the dispute concerns perishable products, consultations shall 
take place within 10 days and the Parties will try to expedite all other procedures (Article  26 of the Protocol ). 
18 The Group pf Experts  will consist of three members and  will operate according to the Model Rules of 
Procedures and Code of Conduct established included in Annex I to the Protocol  (Article  14 of the Protocol ). 
19 Each Party will designate up to 12 nationals and 8 experts from third -parties to be included in the 
roster. For additional details, see Articles 9 and 11 of the Protocol.  
20 In suspending benefits the Party should first consider benefits in the same sector(s) as those affect  ed 
by the measures the Panel has found to be inconsistent with the obligations under t he Agreement; if it 
considers that is ineffective or not practicable, it may do so in other sectors.  
21 For Agreements under LAIA TM 80, two dates are included in the table. The first date is that of the 
circulation of the relevant individual datasheet under the series WT/COMTD/RTA15/N/1/ -; the second date is 
that of the circulation of LAIA's reports that r eferred to the relevant agreement, circulated  under the s eries 
WT/COMTD/ - and (GATT 1947) L/-.  WT/COMTD/RTA7/1/Rev.1  
 
- 21 - 
 
  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year21 WTO Provisions  
and Peru)  
[LAIA, AAP.CE 59]  
Brazil - Guyana - Saint Kitts 
and Nevis  
[LAIA, AAP.A25TM 38]b 31-May-04 Goods  2020 / 2001  Enabling Clause - Changes to 
LAIA TM 80  
MERCOSUR - Mexico  
[LAIA, AAP.CE 55]  01-Jan-03 Goods  2020 / 2004  Enabling Clause - Changes to 
LAIA TM 80  
LAIA - Accession of Cuba  26-Aug-99 Goods  1999 Enabling Clause  
Brazil - Venezuela  
[LAIA, AAP.A14TM 15]  18-Oct-98 Goods  
Services  2020 / 2001  
Not notified  Enabling Clause - Changes to 
LAIA TM 80  
MERCOSUR - Plurinational 
State of Bolivia  
[LAIA, AAP.CE 36]  28-Feb-97 Goods  2020 / 1997  Enabling Clause - Changes to 
LAIA TM 80  
MERCOSUR - Chile  
[LAIA, AAP.CE 35]  01-Oct-96 
19-Jun-11 Goods  
Services  2020 / 1997  
Not notified  Enabling Clause - Changes to 
LAIA TM 80  
LAIA - Seeds  
[AAP.AG 2]  18-Jun-93 Goods  2020 / 1992  Enabling Clause - Changes to 
LAIA TM 80  
Argentina -Brazil-Uruguayc 
[LAIA, AAP.A14TM 6]  27-Jun-92 Goods  2020 / 1996  Enabling Clause - Changes to 
LAIA TM 80  
Southern Common Market 
(MERCOSUR)  29-Nov-91 
07-Dec-05 Goods  
Services  1991 
2006 Enabling Clause  
GATS Art. V  
Argentina - Brazil  
[LAIA, AAP.CE 14]  20-Dec-90 Goods  2020 / 1991  Enabling Clause - Changes to 
LAIA TM 80  
Global System of Trade 
Preferences among 
Developing Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
LAIA - Cultural Goods  
[LAIA AAR.CEYC 7]  01-Jan-89 Goods  2020 / 1999  Enabling Clause - Changes to 
LAIA TM 80  
Brazil - Uruguay  
[LAIA, AAP.CE 2]  16-Oct-85 Goods  2020 / 1984  Enabling Clause - Changes to 
LAIA TM 80  
LAIA – Agreement on Regional 
Tariff Preference  
[LAIA, AAR.PAR 4]  01-Jul-84 Goods  2020 / 1984  Enabling Clause - Changes to 
LAIA TM 80  
LAIA- Preferences in favour of 
Paraguay  
[LAIA, AAR.AM 3]  01-Jul-84 Goods  2020 / 1984  Enabling Clause - Changes to 
LAIA TM 80  
LAIA - Preferences in favour 
of Ecuador  
[LAIA, AAR.AM 2]  01-May-83 Goods  2020 / 1984  Enabling Clause - Changes to 
LAIA TM 80  
LAIA - Preferences in favour 
of the Plurinational State of 
Bolivia  
[LAIA, AAR.AM 1]  01-May-83 Goods  2020 / 1984  Enabl ing Clause - Changes to 
LAIA TM 80  
Latin American Integration 
Association (LAIA)  18-Mar-81 Goods  1982 Enabling Clause  
Protocol on Trade 
Negotiations (PTN)  11-Feb-73 Goods  1971 Enabling Clause  
Brazil - Paraguay  
[LAIA, AAP.CE 74]  28-Sep-20 Goods  Not notified  
MERCOSUR - Colombia  
[LAIA, AAP.CE 72]  20-Dec-17 Goods  Not notified  
MERCOSUR - Accession of 
Venezuela  12-Aug-12 Goods & 
Services  Not notified  
LAIA - Accession of Panama  03-May-12 Goods  Not notified  
MEXICO  
United States -Mexico -Canada 
Agreement (USMCA/CUSMA/  
T-MEC)d 01-Jul-20 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
Comprehensive and 
Progressive Agreement for 
Trans -Pacific Partnership 
(CPTPP)  30-Dec-18 Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
Pacific Alliance  01-May-16 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Mexico - Panama  01-Jul-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  WT/COMTD/RTA7/1/Rev.1  
 
- 22 - 
 
  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year21 WTO Provisions  
Mexico - Central America  01-Sep-12 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
Peru - Mexico  01-Feb-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V; 
Enabling Clause - Changes to 
LAIA TM 80  
Mexico - Plurinational State of 
Bolivia  07-Jun-10 Goods  2019 Enabling Clause  
Japan - Mexico  01-Apr-05 Goods & 
Services  2005 GATT Art. XXIV & GATS Art. V  
Mexico - Uruguay  15-Jul-04 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V; 
Enabling Clause - Changes to 
LAIA TM 80  
MERCOSUR - Mexico  
[LAIA, AAP.CE 55]  01-Jan-03 Goods  2020 / 2004  Enabling Clause - Changes to 
LAIA TM 80  
EFTA - Mexico  01-Jul-01 Goods & 
Services  2001 GATT Art. XXIV & GATS Art. V  
Mexico - Cuba 28-Feb-01 Goods  2019 Enabling Clause  
Mexico - Guatemala  
[LAIA, AAP.A25TM 37]  05-Dec-00 Goods  
Services  2020 / 2001  
Not notified  Enabling Clause - Changes to 
LAIA TM 80  
EU - Mexico  01-Jul-00 
01-Oct-00 Goods  
Services  2000 
2002 GATT Art. XXIV  
GATS Art. V  
Israel - Mexico  01-Jul-00 Goods  2001 GATT Art. XXIV  
LAIA - Accession of Cuba  26-Aug-99 Goods  1999 Enabling Clause  
Chile - Mexico  01-Aug-99 Goods & 
Services  2001 GATT Art. XXIV & GATS Art. V; 
Enabling Clause - Changes to 
LAIA TM 80  
Colombia - Mexico  01-Jan-95 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V; 
Enabling Clause - Changes to 
LAIA TM 80  
GSTP  19-Apr-89 Goods  1989 Enabling Clause  
LAIA - Cultural Goods  
[LAIA AAR.CEYC 7]  01-Jan-89 Goods  2020 / 1999  Enabling Clause - Changes to 
LAIA TM 80  
Argentina - Mexico  01-Jan-87 Goods  2019 Enabling Clause  
LAIA- Preferences in favour of 
Paraguay  
[LAIA, AAR.AM 3]  01-Jul-84 Goods  2020 / 1984  Enabling Clause - Changes to 
LAIA TM 80  
LAIA – Agreement on Regional 
Tariff Preference  
[LAIA, AAR.PAR 4]  01-Jul-84 Goods  2020 / 1984  Enabling Clause - Changes to 
LAIA TM 80  
Mexico - Paraguay  01-Jan-84 Goods  2019 Enabling Clause  
Ecuador - Mexico  01-May-83 Goods  2019 Enabling Clause  
LAIA - Preferences in favour 
of Ecuador  
[LAIA, AAR.AM 2]  01-May-83 Goods  2020 / 1984  Enabling Clause - Changes to 
LAIA TM 80  
LAIA 18-Mar-81 Goods  1982 Enabling Clause  
PTN 11-Feb-73 Goods  1971 Enabling Clause  
LAIA - Accession of Panama  03-May-12 Goods  Not notified  
a Dates of the first entry into force for at least one of the Parties.  
b Saint Kitts and Nevis acceded under the Sixth Additional Protocol which entered into force on 5 July 2012.  
c Uruguay acceded under the First Accession Protocol signed on 15 July 1994.  
d Parties have notified that NAFTA has been superseded by the USMCA/CUSMA/T -MEC. As a result, the 
provisions of the NAFTA are no longer in force, except as expressly provided by the  USMCA/CUSMA/T -
MEC. 
Note:  The LAIA reference is indicated in brackets for some RTAs notified as a change to LAIA's TM 80. 
Further details can be found at: http://www.aladi.org . 
Source:  WTO Secretariat. Further information on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Database on RTAs: http://rtais.wto.org .  
4.8  Government procurement  
4.14.   There are no provisions on Government procurement in the Agreement.  WT/COMTD/RTA7/1/Rev.1  
 
- 23 - 
 
  4.9  Intellectual property rights  
4.15.   There are no provisions on intellectual property rights in the Agreement.  
4.10  Competition  
4.16.   There are no provisions on competition in the Agreement.  
4.11  Environment  
4.17.   There are no provisions on environment in the Agreement.  
4.12  Labour  
4.18.   There are no provisions on labour in the Agreement.  
4.13  Electronic Commerce  
4.19.   There are no provisions on electronic commerce in the Agreement.  
4.14  Small and medium -sized enterprises  
4.20.   There are no provisions on sma ll and medium -sized enterprises in the Agreement . 
  WT/COMTD/RTA7/1/Rev.1  
 
- 24 - 
 
  ANNEX 1 
1. Table A1. 1 shows tariff liberalization by Brazil and Mexico under the Agreement by total, 
agricultural and industrial products.  
2. In the case of Brazil, t he share of duty -free tariff lines applied on all products  from Mexico  in 
2018 was 10.9%, compared to 7.1 % for imports carried under MFN rates . In 2018, t he overall 
average applied tariff was 11.6% on an MFN basis and 10.9 % for preferential imports from Mexico . 
For agricultural goods, exporters from Mexico  faced an average tariff rate of 9.5% instead of the 
MFN average rate of 10.3%, and 11.1% instead of 11.8% for industrial goods. Mexico  thus benefitted 
from a relative margin of preference of 6% overall, 7.8% for agricultural products and 5.9% for 
industrial products.  
3. In the case of Mexico, the share of duty -free tariff lines applied on all products from Brazil in 
2018 was 58.6%, compared to 57.2% for imports carried under MFN rates. In 2018, the overall 
averag e applied tariff was 5.7% on an MFN basis and 5.4% for preferential imports from Brazil. For 
agricultural goods, exporters from Brazil faced an average tariff rate of 13.2% instead of the MFN 
average rate of 14.5%, and 4.4% instead of 4.6% for industrial g oods. Brazil thus benefitted from 
a relative margin of preference of 5.3% overall, 9% for agricultural products and 4.3% for industrial 
products.  
Table A1. 1 Brazil and Mexico : Indicators of applied tariff rates and preferential rates for 
imports from Mexic o 
Origin 
of 
goods  Year ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  
Share 
of duty -
free 
tariff 
lines 
(%) Average 
applied tariff  
Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  
Share of 
duty-free 
tariff 
lines (%)  Overall (%)  
On dutiable (%)  
Overall (%)  
On dutiable (%)  
Overall  (%) 
On dutiable (%)  
BRAZIL  
MFN 2018 11.6 12.5 7.1 10.3 11.1 7.8 11.8 12.7 6.9 
Mexico  2018 10.9 12.2 10.9 9.5 10.7 11.2 11.1 12.4 10.9 
MEXICO  
MFN 2018 5.7 13.3 57.2 14.5 17.4 16.4 4.6 12.2 62.3 
Brazil  2018 5.4 13.1 58.6 13.2 17.0 22.2 4.4 12.1 63.2 
Note:  Tariff coverage is from HS chapters 1 -97. Based on the HS 2017 nomenclature  for Brazil, HS 2012 
for Mexico.   
 In the case of Mexico, the calculation of averages, specific rates and prohibited lines are excluded, 
and the ad valorem  parts of alternate rates are included.  
 The table only takes into account those lines that have been fully liberalized.  
Source:  WTO estimates based on the data submitted by the Mexican authorities, Brazil's SECINT website  and 
the WTO -IDB. 
4. Table A1.2 shows market access opportunities in Brazil for Mexico's top 25  exports , which 
accounted for 43% of its global exports in 201 5-2017 and correspo nd to 141  lines in Brazil's tariff 
at the HS six -digit level (HS  2017). In 2018, one product (petroleum, 2 lines) was fully liberalized 
on an MFN basis, while five products were partially duty -free (totalling 10 tariff lines) and 19 were  
fully dutiable. Under the Agreement, one out of these 25 products – beer, accounting for 0.8% of 
Mexico's global exports in 2015 -2017 - benefit s from a MOP of 70%, with imports from Mexico  
entering Brazil at a rate of 6 % instead of 20% for MFN import s. All the other products are excluded 
from the Agreement.  WT/COMTD/RTA7/1/Rev.1  
 
- 25 - 
 
  Table A1. 2 Brazil: Market access opportunities under the agreement for Mexico's top 25 
exports to the world  
Mexico's top export products in 2015 - 2017  Access Conditions to Brazil's import markets  
HS n umber and description of the 
product  Share in 
global 
exports 
(%) MFN 2018  Agreement  
Average 
MFN 
applied 
rate (%)  No. of 
duty-
free 
lines  No. of 
dutia -
ble 
lines  No .of 
duty-
free 
lines  Remain 
dutiable  
Covered by the Agreement  
220300  Beer made from malt 0.8 20  1  1 
Not covered by the Agreement  
870323  Motor cars and other motor 
vehicles  5.9 35  
2  
2 
270900  Petroleum oils and oils obtained 
from bituminous minerals, crude  4.7 0 2    
870431  Motor vehicles for the transport of 
goods  3.8 35  
4  
4 
851762  Machines for the reception, 
conversion and transmission   3.1 11.2 2 37  
37 
852872  Reception apparatus for 
television, colour  3.0 20  
1  
1 
847150  Processing units for automatic 
data-processing machines  2.8 11.2  
5  
5 
854430  Ignition wiring sets and other 
wiring sets for vehicles, aircraft  2.0 16  
1  
1 
870120  Road tractors for semi -trailers  1.7 35  
1  
1 
940190  Parts of seats  1.5 18  
2  
2 
870829  Parts and accessories of bodies 
for tractors, motor vehicles for  1.4 14.7  
11  
11 
847149  Data-processing machines, 
automatic, presented in the form 
… 1.3 16  
1  
1 
870322  Motor cars and other motor 
vehicles principally designed for 
the 1.3 35  
2  
2 
870850  Drive -axles with differential  1.0 13 1 5  
5 
853710  Boards, cabinets and similar 
combinations of apparatus for  1.0 12.4  
5  
5 
851770  Parts of telephone sets, 
telephones for cellular networks 
or for other  0.9 9  
6  
6 
870899  Parts and accessories, for 
tractors, motor vehicles for the 
transport  0.9 9 1 1  
1 
870422  Motor vehicles for the transport of 
goods, with compression -ignition  0.9 35  
4  
4 
840734  Spark -ignition reciprocating piston 
engine, of a kind used for vehicles  0.9 18  
2  
2 
901890  Instruments and appliances used 
in medical, surgical or veterinary  0.8 9.1 5 9  
9 
841810  Combined refrigerator -freezers, 
with separate external doors  0.8 20  
1  
1 
840991  Parts suitable for use solely or 
principally with spark -ignition 
internal combustion piston engine  0.8 14.8  
12  
12 
870840  Gear boxes and parts thereof, for 
tractors, motor vehicles for the  0.7 12.5 1 3  
3 
847170  Storage units for automatic data -
processing machines  0.7 5.6  
9  
9 
870895  Safety airbags with inflator 
system and parts thereof, for 
tractors  0.7 14  
4  
4 
 
Total of the above  43.0 17.6 12 129 - 129 
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data in the WTO -IDB and UNSD, Comtrade database.   WT/COMTD/RTA7/1/Rev.1  
 
- 26 - 
 
  5. Table A1. 3 shows market access opportunities in Brazil for Mexico's top 25  exports, which 
accounted for 58.3% of its global exports in 2015 -2017 and correspond to 60  lines in Mexico's tariff 
at the  HS six -digit level (HS  2012). Of the 60 lines 35 were duty -free on an MFN basis in 2018. 
Seven products (10 lines) , accounting for 26.3% of Brazil's global exports , are covered by the 
Agreement  of which one line was MFN dutiable in 2018 . The MOP granted t o oilcake in 2304.00 is 
20%, that for seasonal imports of soya beans of 1201.90 is 80% ; for the other five products a duty -
free preferential rate applies. For all these products, including the seasonal imports of soya beans, 
the MFN 2018 w as duty -free.1 All the other 18 products are not covered by the Agreement.   
Table A1.3 Mexico: Market access opportunities under the agreement for Brazil's top 25 
exports to the world  
Brazil's top export products in 2015 - 2017  Access Conditions to Mexico's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2018  Agreement  
Average 
MFN 
applied 
rate (%)  No. of 
duty-
free 
lines  No. of 
dutiable  
lines  No. of 
duty-
free 
lines  Remain 
dutiable  
Covered by the Agreement  
120190  Soya beans  11.1 7.5 1 1  1 
260111  Non-agglomerated iron ores and 
concentrates  6.5 0.0 1    
470329  Semi-bleached or bleached non -
coniferous chemical wood pulp,  2.7 0.0 2    
230400  Oilcake and other solid residues  2.7 0.0 1    
281820  Aluminium oxide  1.2 0.0 2    
260300  Copper ores and concentrates  1.1 0.0 1    
710813  Other semi -manufactured g old 0.9 0.0 1    
Not covered by the Agreement  
270900  Petroleum oils and oils obtained 
from bituminous minerals, crude  6.5 0.0 4    
170114  Raw cane sugar  3.9 0.0  2  2 
090111  Coffee  2.5 20.0  2  2 
100590  Maize  2.2 4.0 4 1  1 
020714  Frozen cuts and edible offal of 
fowls of the species gallus 
domesticus  2.1 62.0  5  5 
020230  Frozen, boneless meat of bovine 
animals  2.0 25.0  1  1 
880240  Aeroplanes and other powered 
aircraft  1.5 0.0 1    
870323  Motor cars and other motor 
vehicles  1.5 35.0  2  2 
260112  Agglomerated iron ores and 
concentrates  1.3 0.0 1    
841191  Parts of turbojets or 
turbopropellers  1.2 0.0 1    
170199  Cane or beet sugar and 
chemically pure sucrose, in solid 
form 1.1 0.0  3  3 
720712  Semi-finished products of iron or 
non-alloy steel  1.1 15.0  2  2 
020712  Frozen fowls of the species gallus 
domesticus  1.0 75.0  1  1 
890590  Light-vessels, fire -floats, floating 
cranes and other vessels, the  1.0 2.5 1 1  1 
240120  Tobacco  1.0 45.0  3  3 
720293  Ferro-niobium  0.8 0.0 1    
520100  Cotton  0.7 0.0 3    
271019  Medium oils and preparations  0.6 0.3 10 1  1 
 Total of the above  58.3 11.7 35 25 - 25 
Note:  Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data submitted by the Mexican authorities, the WTO -IDB, LAIA website and 
the UNSD, Comtrade database.  
__________  
 
1 Outside the period 1 February -31 July, the 2018 MFN rate was 15%.  