Doing Business with Mexico 1

Team Work,

Team members: September 9, 2009

Name: Samantha Kern ID# 00898978

Name: Alexandria Washburn ID# 00898987

Name: Enrique Salcedo ID# 00898998

After reading the article Mexico’s Position as a world class trader answer the
following ideas:

1. Explain why Mexico has made a dramatic transition

Mexico has made a dramatic transition because of open trade policies,

which has allowed them to participate in the world economy and to face the
challenges presented by unstable financial markets and economic
slowdown.

2. Mention 3 aspects in which Mexico has integrated to the world

1. unilaterally liberalizing its economy in the early 80’s

2. by joining GATT in 1986

3. undertaking a very ambitious agenda of international trade negotiations

to open markets guided by the principles of balance and reciprocity.

3. Explain what the GATT is, when and why Mexico has joined it.

Mexico joined GATT in 1986. GATT is the first trade agreement. It was later
changed too WTO. They joined GATT to be more open to a network of
trade agreements.

4. After analyzing the 2 attached spread sheets impmx_ae.html and

expmx_ae.html, make a list starting with the most profitable free trade
agreement PER COUNTRY for Mexico. Use the network of trade agreements
for reference of agreements.
 Doing Business with Mexico 2

***The PDFs you sent to us do not allow us to view all the information on the
tables. As a result we cannot rank them because the more recent information in un-
readable.

5. What is the percentage of Mexico’s exports that are duty free?

The percentage of Mexico’s exports that are duty free is 94%.

6. What is the MERCOSUR and what is Mexico’s position about it?

MERCOSUR is a free trade agreement with Argentina, Brazil and Paraguay.

Mexico believes MERCOSUR will act as a building block for the free trade area of
the Americas and open new markets for its exports.

7. What is the FTAA and which are the countries involved?

FTAA is the Free Trade Area of the Americas. Countries involved are Mexico,
Argentina, Brazil, Paraguay and Panama.

8. Find and comment about the latest news (Tuesday, august 18th 2009) about
conversations between Mexican President Calderón Hinojosa and Brazilian
President Luiz Inácio Lula da Silva about FTA (TLC Brasil-México)

According to the recent article we found Brazil and Mexico together make up
almost 70% of Latin America’s GDP. We think that while agreements between
Brazil and Mexico will benefit the two Latin American Giants, smaller countries that
they are already in trade agreement with could economically suffer as a result.

9. Mention 3 aspects to which trade liberalization has contributed

Mexico has transformed into a more strategic manufacturing center, has high
value-added export production and has allowed Mexico to develop its export
platform.

10.Find the adequate statistical source to update the 3 tables shown in the
article for year 2008 in Mexico's performance by sector

http://www.wto.org/english/tratop_e/tpr_e/tp295_e.htm

(Information under Appendix tables)