Mexico’s Trade Relations with Peru in Light of CPTPP – Commentary

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Mexico and the CPTPP
Mexico’s trade relations with Peru
Benefits for Mexico after Peru’s accession to the CPTPP

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement that defines the rules and disciplines under which the trade relations of countries in the Asia-Pacific region are regulated.

Mexico and the CPTPP

The CPTPP entered into force in Mexico on December 30, 2018, expanding Mexico’s network of agreements and giving it preferential access to 49 countries (up to 51 once Brunei and Malaysia implement the CPTPP) . The CPTPP aims to create the conditions for increasing trade and investment with Mexico’s partners in the Asia-Pacific region, a region showing dynamic growth.

Through the CPTPP, Mexico seeks to promote sectors, such as the automotive and aerospace industries, and products such as medical devices, electrical and electronic products, cosmetics, tequila, mezcal, beer, avocado and beef.

Mexico’s trade relations with Peru

Peru is one of Mexico’s main trading partners and the second largest recipient of Mexican foreign direct investment in Latin America, after Brazil.

The agreement notifying the incorporation of Peru into the CPTPP was published in Federal Official Gazette in Mexico on September 19, 2021, the same day the CPTPP entered into force for Peru.

Mexico had already concluded two free trade agreements with Peru:

  • the Mexico-Peru trade integration agreement (Acuerdo de Integración Comercial Mexico-Peru), which entered into force on February 1, 2012; and
  • the peaceful alliance agreement (Protocolo Adicional al Acuerdo Marco de la Alianza del Pacífico), concluded with Peru, Colombia and Chile on April 28, 2011.

The following table shows the amount of imports and exports between Mexico and Peru, according to the Peruvian Market Information Department:

Year

2019

2020

Exports from Peru to Mexico

$ 478,000,000 USD

455,000,000 USD

Imports to Peru from Mexico

US $ 1,793,000,000

1,463,000,000 USD

The main imports into Mexico from Peru are:

  • natural gas;
  • tea and spices;
  • tomatoes;
  • Coffee; and
  • machines for the coffee and grape (vine) industries.

The main exports from Mexico to Peru are:

  • televisions;
  • automobiles and auto parts;
  • tractors and semi-trailers;
  • shampoo; and
  • diesel trucks.

Benefits for Mexico after Peru’s accession to the CPTPP

Under the CPTPP, most goods from Peru will automatically be duty free. However, according to the established tariff schedule, certain goods will be subject to a gradual tariff elimination which will end in 2033.

Goods originating in Peru which are subject to the phase-out period include:

  • chicken;
  • pork;
  • dairy products;
  • asparagus;
  • oranges;
  • lemons;
  • cotton thread;
  • cotton fabrics;
  • textured polyester yarn;
  • the rugs;
  • cloth; and
  • clothes.

The CPTPP has a mechanism for self-certification of origin through a free form that the exporter or producer of the goods must complete. This will facilitate and simplify the origin certification process, saving time and reducing paperwork. In some cases, the CPTPP regulates the certification of origin issued by the importer of the goods.

For more information on this topic, please contact Edmundo Elias-Fernández, Daniel Torres-Güemez Where Daniel Ascencio-Zamarripa to Ramos, Ripoll & Schuster by phone (+52 55 1518 0445) or by e-mail ([email protected], [email protected] Where [email protected]). The Ramos, Ripoll & Schuster website can be accessed at www.rrs.com.mx.


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