Trans-Pacific Agreement will raise Mexico’s export capacity

The international law firm Jones Day estimated that the Trans Pacific Strategic Economic Partnership (TPP) to be signed on February 4 in New Zealand for its 12 members will increase exponentially the exporting and attracting investment to Mexico capacity. The partner in the Practice of Government Affairs and Telecommunications Mergers and Acquisitions Jones Day Mexico, Luis Rubio, said Mexico “cannot afford” not to join the TPP, it would be left behind in trade and investment limit. He hoped that the Senate will ratify the TPP by Mexico, since many of the commitments that derive from this treaty are already part of other trade agreements that Mexico has some of the 11 other members of this new block. He noted that the 12 members of the TPP (United States, Mexico, Chile, Peru, Australia, Brunei, Canada, Japan, Malaysia, New Zealand, Singapore and Vietnam) focused worldwide 36 percent of gross domestic product (GDP), 25 percent of trade, 11 percent of the population and 28 percent of attracting foreign direct investment (FDI).

Rubio, who was part of the negotiating team of the North American Free Trade Agreement (NAFTA) on behalf of Mexico, said to belong to the TPP would give Mexico many opportunities to export goods and access to other markets that could not without reaching agreement. In an interview with Notimex, anticipated to be in this new trade bloc will make the potential of making Mexico’s exports to the US and Canada to double with other members of the TPP. “If we had not got on the TPP will most likely not have more investment and other countries to compete more for investment than could compete Mexico and our export levels are not going to grow substantially,” warned the specialist firm. While the TPP involves additional effort and commitment by Mexico, even without that was part of this block, however the country would have to update their anti-corruption legislation, labor, environmental, financial services or e-commerce field. He noted that in other trade agreements and to the World Trade Organization (WTO), Mexico is already forced to adopt best legislative practice in these issues, and failure to do so would be left behind in trade and lose international competitiveness for investments . After the signing of this TPP 4 next February, will start the legislative process for approval in each of the 12 member countries, and in the case of Mexico will be the Senate responsible for review and approval. In response, Rubio considered for approval, senators should weigh the benefits it will bring to Mexico to be part of this business in the medium and long term and taking into account that

many of the commitments it has already been assumed by Mexico in other conventions Business. According to the critical path of the TPP it is expected that after his signature, within two years, 12 countries notified the approval of the treaty, after which would come into force 60 days later. However, there is a clause stating that the agreement would enter into force when been ratified by six countries of the TPP representing 85 percent of the trading bloc.

Source: MéxicoXport