Agreements

Mexico has actively participated in several types of agreements, with the intent of enhancing its economic development through international arrangements with various countries. Mexico has joined in multilateral agreements, free trade agreements, framework agreements, partial preferential agreements, and bilateral investment treaties.  A multilateral agreement involves an agreement between more than two governments, such as the World Trade Organization (WTO) of which Mexico is a participating member.  If a multilateral agreement cannot be achieved, then a bilateral trade agreement can be arranged between two nations. Bilateral trade agreements are fairly easy to negotiate, giving a favored trading status between the two nations. A free trade agreement provides for lifting of tariffs on goods and services. It is, in essence, an agreement wherein the government does not discriminate against imports or interfere with exports. It refrains from actions that may hinder international trade, such as tariff barriers, currency restrictions and import quotas. The North American Free Trade Agreement (NAFTA) is an agreement between Canada, Mexico and the United States and works in that fashion. A free trade zone was established between the three countries and agreed to eliminate tariffs, quotas and preferences on most (if not all) goods and services traded between them.  A framework agreement involves a supply of products or services over a given time period. It does not specify definite quantities of goods or services that will be ordered against it. Framework agreements are normally used to set up general supply arrangements with another government or to set up central supply arrangements. Once a framework agreement is in place, the government can place purchase orders against it under the agreed terms and conditions. In a preferential trade agreement, it is determined whether a product originated from the area is covered by the agreement and qualifies for its preferential tariff. Mexico is one of the founding members of several international organizations, such as the United Nations, Organization of American States, OPANAL, and the RIO Group. OPANAL is an acronym which means Organismo para la Proscripción de las Armas Nucleares en la América Latina y el Caribe (Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean). It is an international organization which promotes nuclear disarmament. The agreement forbids its signatory nations from use, storage, or transport of nuclear weapons. It is also part of the G8+5 and G-20 economic groups. The G8+5 group of leaders consists of the G8 nations (Canada, France, Germany, Italy, Japan, Russia, United Kingdom and United States), plus the five leading emerging economies (Brazil, China, India, Mexico and South Africa). The aim is to address global warming issues.