ABSTRACT
Mexico is vigorously pursuing free-trade agreements with many other countries as a way of expanding the benefits from trade liberalization and attempting to lessen its dependence on the US market. Prior to 2000, Mexico had free-trade agreements in effect with Chile, Costa Rica, Bolivia, Colombia, Venezuela, and Nicaragua. In 2000, Mexico signed a free-trade agreement with the European Union (EU). Similar to NAFTA in its coverage, this agreement went into effect on July 1, 2000. Mexico also signed trade agreements with Israel and with the Central American “Northern Triangle” (Guatemala, El Salvador, and Honduras). Free-trade negotiations are now underway with Panama and with the European Free Trade Association (EFTA) (Norway, Switzerland, Iceland, and Liechtenstein), and Mexico continues to push Japan to begin similar negotiations. In addition to these free-trade efforts, Mexico renewed a bilateral accord with Uruguay within the framework of Asociacion Lationamericana de Integracion (ALADI) and has since begun negotiations on a similar preference agreement with Brazil. Mexico hopes that these accords can become stepping-stones for an eventual free-trade agreement with Mercosur (Argentina, Brazil, Paraguay, and Uruguay). (DoC, 2001 Chap. 1).
