Abstract
Trade between China and Mexico has grown more than 10 times between 2000 and 2012. Mexico is the second largest trading partner of China in Latin America after Brazil. However, these nations compete for the United States (U.S.) market, even more relevant. Since 1990, the bilateral trade balance has been in deficit for Mexico, increasing by 54.17 % from 1990 to 2012. Chinese products have been accused of causing severe competitiveness problems for Mexican industries, so Mexico has repeatedly raised tariffs. A critical year was 1995, when the Mexican devaluation significantly reduced the purchasing power of Mexican citizens and the government decided to raise tariffs substantially. Despite this, China’s imports in 1995 showed an increase over 1994.
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Notes
- 1.
http://200.77.231.38/sic_php/pages/estadisticas/mexicojun2011/Z3bc_e.html (last visit: September 20, 2013).
- 2.
The negotiations were difficult and laborious. Mexico sought significant tariffs reductions on seafood, fruits and vegetables, sugar, orange juice, coffee, beer, tequila and other liquors, cement, snuff, chemicals and pharmaceuticals, rubber, glass, iron and steel, electronic and electrical products, automobiles, trucks and parts, among others in order to have a greater presence in the Chinese market. These negotiations were part of a special protocol of accession of China to the WTO agreed in Geneva, and which defined, among others, issues concerning the methodology for calculating dumping for Chinese products, control of prices for some products traded internationally, and trade of Chinese products marketed by the U.S. See Cornejo (2005).
- 3.
Lenz (2003).
- 4.
Hernández (2012).
- 5.
Faust and Franke (2005).
- 6.
Existing treaties between Mexico and partners countries include the U.S., Canada, Chile, Bolivia, Costa Rica, Nicaragua, Uruguay, Guatemala, El Salvador, Honduras, Israel, the EU, and Japan.
- 7.
Instituto Nacional de Estadística y Geografía website. Available at http://www.inegi.org.mx/.
- 8.
Manríquez (2006), pp. 28–47.
- 9.
WTO, China – Certain Measures Granting Refunds, Reductions or Exemptions from Taxes and Other Payments, DS359.
- 10.
WTO, China – Grants, Loans and Other Incentives, DS388.
- 11.
WTO, China – Measures Related to the Exportation of Various Raw Materials, DS398.
- 12.
WTO, China – Measures Relating to the Production and Exportation of Apparel and Textile Products, DS451.
- 13.
In particular, paragraphs 5.1, 5.2, 8.2, and 11.3 of Part I of the Protocol on the Accession of the People’s Republic of China to the WTO, as well as China’s obligations under the provisions of paragraph 1.2 of Part I of the Accession Protocol (which incorporates commitments in paragraphs 83, 84, 162, and 165 of the Report of the Working Party on the Accession of China). Upon its accession to the WTO, China undertook to eliminate all export duties except for a number of products listed in an Annex to its Protocol of Accession. In the Protocol, China also committed not to apply export quotas.
- 14.
Mexico claims that these measures are inconsistent with Articles 3.1(a) and (b), 5(c), 6.3(b) and (c), 6.4, and 6.5 of the SCM Agreement; Article III:4 of the GATT 1994; Articles 3, 9, and 10 of the Agreement on Agriculture; and Paragraph 1.2 of Part I of China’s Accession Protocol.
- 15.
Bown (2011).
- 16.
Database DED/SESI.
- 17.
Database DED/SESI (1987—October 15, 3013).
- 18.
- 19.
Acuerdo entre el Gobierno de los Estados Unidos Mexicanos y el Gobierno de la República Popular de China en materia de medidas de remedio comercial www.iqom.com.mx/documents/AcuerdoconChinafinalespanol.pdf.
- 20.
A list can be found here: http://natlaw.com/mexico/diario/files/0810/081014in.htm.
- 21.
Secretaria de Economia (2008) Acuerdo por el que se implementa una medida de transición temporal sobre las importaciones de diversas mercancías originarias de la República Popular China, 14 October 2008 www.canaco.net/publicaciones/14102008_china.doc.
- 22.
For instance, due to the lobbying efforts from domestic producers, the Senate has recently approved a bill to amend the Foreign Trade Law, seeking to make it easier for an investigating authority to act against unfair practices by creating an independent commission that would assume the authority of the existing UPCI within the Ministry of Economy.
- 23.
Hernández (2012), p. 4.
References
Bown CP (ed) (2011) The great recession and import protection: the role of temporary trade barriers. World Bank, London
Cornejo R (2005) México y la competitividad de China. In: Cesarin S, Moneta C (eds) China y América Latina. Nuevos enfoques sobre cooperación y desarrollo. ¿Una segunda Ruta de la Seda? Intal, Buenos Aires
Faust J, Franke U (2005) Relations between Mexico and East-Asia. In: Kim W-H, Faust J, Mols M (eds) Latin American ad East Asia attempts at diversification. Muster, LIT, Seoul
Hernández R (2012) La política de comercio exterior de China y sus implicaciones para las relaciones comerciales con México. México y la Cuenca del Pacífico. Año 15, núm. 43 / enero – abril de 2012
Lenz A (2003) China’s World Trade and Investment: an overview US-China economic and security review commission, (2003). Available at: http://www.uscc.gov/researchpapers/2000_2003/reports/03_oct_drallenlenz.html
Manríquez JLL (2006) China-América Latina: una relación económica diferenciada. Nueva Sociedad 203:28–47
Secretaria de Economia (2008) Acuerdo por el que se implementa una medida de transición temporal sobre las importaciones de diversas mercancías originarias de la República Popular China, 14 October 2008 www.canaco.net/publicaciones/14102008_china.doc
WTO cases
WTO, China – Certain measures granting refunds, reductions or exemptions from taxes and other payments, DS359
WTO, China – Grants, loans and other incentives, DS388
WTO, China – Measures related to the exportation of various raw materials, DS398
WTO, China – Measures relating to the production and exportation of apparel and textile products, DS451
WTO anti-dumping database. Available at http://www.wto.org/english/tratop_e/adp_e/AD_InitiationsRepMemVsExpCty.pdf
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Gómez-Altamirano, D. (2015). China–Mexico Trade Disputes: Fear of Competition?. In: Wei, D. (eds) Settlements of Trade Disputes between China and Latin American Countries. Laws in Emerging Economies, vol 1. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-46425-0_7
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