Significant Progress In Mexico But Higher Productivity Required

by Lorys Charalambous, Tax-News.com, Cyprus

12 February 2008

Since its previous review in 2002, Mexico has continued with the gradual and unilateral liberalization of its trade regime, the World Trade Organization announced this week.

It has also concluded new free-trade agreements, conducting 85% of its trade with preferential partners. Mexico economic performance has been solid and several sectors of its economy have achieved high levels of development, according to a WTO Secretariat report on the trade policies and practices of Mexico.

Nevertheless, some barriers to trade and investment persist, while per capita income has risen only modestly, and alleviating poverty remains a challenge.

Steps to speed up productivity growth would seem necessary, argued the WTO, such as increasing competition in the domestic market, and the rationalization of the MFN tariff and of special fiscal regimes.

The WTO went on to note that further structural reforms would contribute to reducing bottlenecks in areas such as energy, telecommunications and transport.

Resolving these long-standing issues would help Mexico to take advantage of the significant progress already attained in order to accelerate growth and achieve higher living standards, it suggested.

A WTO Secretariat report, along with a policy statement by the Government of Mexico, will be the basis for the fourth TPR of Mexico by the Trade Policy Review Body of the WTO, published this week.

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