Mexico: Unilateral tariff elimination.
Description
On December 24, 2008, the Mexican Ministry of Economy published a decree that unilaterally reduces or eliminates the Most Favored Nation (MFN) import duties applicable to 8,357 tariff codes of the Mexican Harmonized System.
This reduction or elimination of MFN import tariffs constitutes the most ambitious unilateral reform undertaken during the last 20 years. The reform will affect 69% of the 12,119 tariff codes that integrate the Mexican Harmonized System. Excluding agricultural products classified under Chapters 1 through 24 of the Harmonized System (HS), the unilateral liberalization applies to 70 of the 73 HS Chapters relating to industrial products.
During 2007, Mexican imports of products subject to the liberalization amounted to 141 billion dollars: 50% of Mexican total imports in that year.
The unilateral liberalization will take place in 5 stages, starting on January 1, 2009 and concluding on January 1, 2013. This measure will reduce the Mexican average industrial tariff from 10.4% in 2008 to 4.3% in 2013, as follows:
2008: 10.4%
2009: 8.3%
2010: 5.2%
2011: 4.6%
2012: 4.4%
2013: 4.3%
On February 9, 2010, the Mexican Ministry of Economy published a decree that
delays the elimination or reduction of the MFN import duties applicable to products classified under 319 tariff codes of the Mexican Harmonized System.
In particular, this latest decree:
(a) Delays, until January 1, 2012, the elimination of the MFN import duties applicable to iron and steel products classified under 196 tariff codes of Chapter 72 of the Mexican Harmonized System. During 2010 and 2011 these products will be subject to MFN duties that range from 3% to 5%. Originally the MFN import duties for these products should have been eliminated as of January 1, 2010.
(b) Delays, until January 1, 2012, the elimination of the MFN import duties applicable to iron and steel articles classified under 73 tariff codes of Chapter 73 of the Mexican Harmonized System. During 2010 and 2011 these products will be subject to MFN duties that range from 5% to 7%. Originally the MFN import duties for these products should have been eliminated as of January 1, 2010.
(c) Delays, until January 1, 2012, the last stage of the MFN import duties elimination applicable to iron and steel articles classified under 30 tariff codes of Chapter 73 of the Mexican Harmonized System. During 2010 and 2011 these products will be subject to a 7% MFN import duty. Originally the MFN import duties for these products should have reduced to 5% as of January 1, 2010.
(d) Excludes the following 20 products from the MFN import duty elimination certain: abrasives (classified under 4 tariff codes); iron and steel articles (classified under 15 tariff codes); and bath, shower, sink and lavatory faucets (one tariff code).
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered: 01/01/2009
Implemented: Yes
Date of inception: 1 Jan 2009
Duration: 48 months
GTA Evaluation: Green
Source:
Mexican Ministry of Economy
http://www.iqom.com.mx/documents/0109/decreto%20SE%20Modificaciones%20TI...
Government Response:
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