Mexico and Argentina reached an agreement for the exchange of lists of products and sectors that could enter freely or with lower tariffs in both countries, after four days of meetings in Buenos Aires, Argentina, during the Second Round of Negotiations to expand and deepen The Economic Complementation Agreement.
The expectation of Argentina is to expand the total range of goods that are commercialized with Mexico, especially in the agricultural and agroindustrial products sector. Meanwhile, Mexico seeks to reduce tariffs for industrial manufactures, especially for the automotive sector.
The bilateral trade balance, historically deficient for Mexico, has recorded a surplus for Mexican since 2010, driven by the increase in the exports of the automotive sector. In 2016, the surplus reached 876.5 million dollars, 13% less than a year earlier.
The Argentine government wants to compensate the trade balance by sending more maize, wheat and soybeans, among other agricultural products. According to a report by the Argentine Rural Society (SRA), Mexico represents a potential market of 8.9 billion dollars in Argentina for grain, meat and dairy exports.
Both delegations made progress in negotiating issues such as market access, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, trade remedies and safeguards, public procurement, services, e-commerce, investment, intellectual property, trade facilitation, improvement Regulatory, competition policy, institutional aspects and dispute settlement, the Argentine Foreign Ministry reported.
Signed in 1986 and updated in August 2006, ACE 6 is a small-scope exchange agreement covering approximately 35% of the total universe of goods and accounting for 43% of bilateral trade between 2013 and 2016.