Japan And Mexico To Reduce Tariffs Under New FTA

by Mary Swire, Tax-News.com, Hong Kong

16 March 2004

Officials announced last Friday that the governments of Japan and Mexico have concluded a bilateral free trade agreement that will reduce import tariffs and duties on a range of goods from next year.

For Japan, the deal represents only the second free trade agreement that it has concluded, the other being with Singapore. Mexico meanwhile, has eleven FTAs with a total of 32 nations. It has been estimated that the latest agreement will mean a $1.3 billion boost to Japanese investment in Mexico.

As a result of the deal, both governments have committed themselves to removing tariffs on a range of agricultural and manufactured products.

For example, Japan has agreed to lower import tariffs on Mexican pork from 4.3% to 2.2%, plus other agricultural produce such as oranges, orange juice, beef and poultry. Tokyo will eliminate all tariffs on Mexican manufactured goods in ten years.

In return, Mexico has agreed to abolish tariffs on Japanese steel products and electrical consumer goods such as televisions and CD players. In addition, Mexico has consented to gradually opening up its market to Japanese-made cars, buses and trucks, with all restrictions expected to disappear by 2007.

More products are expected to be added to the list during forthcoming meetings between the two governments.

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