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Bilateral Relations and Agreements
Mexico-China relations continue to be consolidated through agreements and the establishment of associations such as the creation of a strategic association in December 2003 within the framework of the visit to Mexico of Prime Minister Wen Jiabao.
It is also worth noting the establishment and holding of the First and Second Meetings of the Mexico-China Binational Commission in August 2004 in Beijing and May 2006 in Mexico, respectively, as well as the visits by the Vice President of China, Zeng Qinghong, and President Hu Jintao in January and September 2005 as well as Foreign Minister Patricia Espinosa’s visit in November 2007.
China has expressed its interest in intensifying investment in the fields of agriculture, fisheries, mining, petrochemicals, household appliances, manufacture and assembly of light industry products and technology, among others. In May 2008 the negotiations for an Agreement on Reciprocal Promotion and Protection of Investments (ARPPI) concluded.
This instrument was signed by the Minister of Economy, Eduardo Sojo, and the Chinese Minister of Trade, Chen Deming, within the purview of the visit made by President Felipe Calderón Hinojosa to China, on July 9th and 10th, 2008. ARPPI will create a framework of clear, transparent rules that will make it possible to legally protect capital flows and contribute to improving the conditions of Chinese companies seeking to invest in Mexico and vice versa, by providing them with greater certainty and security.
ARPPI will significantly strengthen the potential of economic relations between the two countries, particularly under the heading of investment in productive projects, which are already beginning to flow toward our country.
Combating illegal trade continues to be a topic for analysis and discussion in the High Level Group between the Ministry of Economy (SE) and its Chinese counterpart and it is hoped that its analysis will contribute to advancing in specific measures for its elimination. It is necessary to sign an agreement on customs assistance to complete this strategy.
In terms of tourism, the prospects for cooperation are positive, thanks to Mexico’s designation as a tourist destination approved for Chinese citizens. Likewise, the agreements reached at the Second Meeting of the Binational Commission in the sense of establishing tourism offices and a cooperation mechanism on the matter between the tourism authorities of both countries, will contribute to furthering tourism both ways.
The implementation of the Agreement on Air Transportation that entered into effect on July 30th 2005, will also make it possible to begin to outline the strategy for attraction of Chinese tourists to Mexico, as well as to advance on steps to establish regular flights between the two countries.
With regard to transportation, the bilateral relations show encouraging cooperation prospects thanks to the signing of the Agreements on Maritime Transportation in September 2005 and the Memorandum of Understanding for cooperation in the fields of land, maritime and river transportation and infrastructure and for cooperation in the field of information and telecommunications in May 2006 within the framework of the Second Meeting of the Mexico-China Binational Commission.
Cooperation in mining shows encouraging prospects as a result of the signing of the Memorandum of Understanding on Cooperation in Mining between the Ministry of Economy and its Chinese counterpart and the commitment assumed by both parties within the purview of the Second Meeting of the Mexico-China Binational Commission to implement the Memorandum.
Mexico continues seeking agreements with China with regard to the topic of countervailing duties. On June 2nd, 2008, the Transition Trade Agreement with regard to Countervailing Duties between Mexico and China was signed, whereby a transition period is established for our country’s industrial sectors affected by the elimination of the countervailing duties imposed on diverse Chinese imports, included in 953 tariff items. Said elimination is the result of the expiration of the reserves established in China’s Accession Protocol to the World Trade Organization (WTO). The industrial sectors included in the negotiation are textiles, ready-made clothing, footwear, toys, bicycles, baby carriages, tools, household appliances, electrical machines and apparatuses, chemical products, lighters, pencils, valves, ballasts, locks and candles.
The Mexico-China High Level Group (HLG) has concluded the negotiation of the bilateral agreement on pork, to facilitate Mexican exports of this product to China. This agreement was signed by President Felipe Calderón Hinojosa within the framework of his official visit to China in July 2008.
In February 2009, a delegation of entrepreneurs from China headed by Vice President Xi Jinping visited Mexico. On this visit cooperation agreements were signed on economic, financial and cultural matters.