TPP will add 1.3 points of growth to Mexico

The Trans-Pacific Partnership (TPP) will add around 1.3 percentage points to gross domestic product (GDP) in the first five years its application, said Secretary of Economy Ildefonso Guajardo, citing figures from Oxford Economics, a global consulting firm dedicated to quantitative studies. “Oxford Economics has revealed in a recent study that the impact would be around 1.3 percentage points of GDP,” the official said during his participation in the Mexico Business Summit, which takes place from 25 to 27 October in Guadalajara, Jalisco . On October 5, in the City of Atlanta, negotiations of TPP, but is still subject to approval by the Member States, the Senate in the case of Mexico.

“The agreement will be signed in January,” he said in a speech attended by Mexican and foreign entrepreneurs. Guajardo said Mexico will get commercial benefits. “Mexico earns much: immediate access to 90% of the tariff rate in target markets. We were able to establish only in the medium term, 9% product and only 1% have limited access to fee strategic determinations in five agricultural markets “, he said. By participating in the Mexico Business Summit, the official highlighted the progress made by Mexico in foreign trade following other treaties such as the Free Trade Area of Mexico with the United States and Canada in 1994. “At that time, our country had an opening of 23% of GDP to the external sector, today we have an opening of 63%,” exemplified. From that time to date, Mexican exports have multiplied eight times. Foreign direct investment increased from four billion dollars (mdd) before NAFTA in North America at an annual average of about $ 30 billion from 2012 to date. Although, the country remains with low development and poverty levels; reaching almost half of its population growth. According to the official, Mexico was able to establish conditions for the textile and automotive industries.

“Mexico in TPP is put at the forefront of the 21st century as it did 20 years ago with the North American Free Trade Agreement”, he said.

Source: MéxicoXport