Mexico's trade relationship with Peru in light of the CPTPP

Mexico and the CPTPP
Mexico's commercial relationship with Peru
Benefits for Mexico after Peru's accession to the CPTPP

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement that sets out the rules and disciplines under which the trade relationships of countries in the Asia-Pacific region are regulated.

Mexico and the CPTPP

The CPTPP became effective in Mexico on 30 December 2018, so expanding Mexico's network of agreements and giving it preferential access to 49 countries (rising to 51 once Brunei and Malaysia implement the CPTPP). The CPTPP aims to create conditions to increase trade and investment with Mexico's partners in the Asia-Pacific region, a region that is showing a dynamic growth.

Through the CPTPP, Mexico seeks to promote sectors, such as the automotive and aerospace industries, and products, such as medical devices, electrical and electronic products, cosmetics, tequila, mezcal, beer, avocado and beef.

Mexico's commercial relationship with Peru

Peru is one of Mexico's main trade partners and the second-largest recipient of Mexican foreign direct investment in Latin America, after Brazil.

The agreement notifying the incorporation of Peru into the CPTPP was published in the Federal Official Gazette in Mexico on 19 September 2021, the same day the CPTPP became effective for Peru.

Mexico already had two free trade agreements in place with Peru:

• the Mexico-Peru trade integration agreement (Acuerdo de Integración Comercial México-Perú), which became effective on 1 February 2012; and

• the pacific alliance agreement (Protocolo Adicional al Acuerdo Marco de la Alianza del Pacífico), entered into with Peru, Colombia and Chile on 28 April 2011.

The following table shows the amount of imports and exports between Mexico and Peru, in accordance with Peru's market intelligence department:

The main imports to Mexico from Peru are:

• natural gas;
• tea and spices;
• tomatoes;
• coffee; and
• machinery for the coffee and grape (grapevine) industries.

The main exports from Mexico to Peru are:

• televisions;
• automobiles and automobile parts;
• tractors and semi-trailers;
• shampoo; and
• diesel trucks.

Benefits for Mexico after Peru's accession to the CPTPP

Under the CPTPP, most of the goods originating from Peru will automatically be duty free. However, according to the established tariff schedule, certain goods will be subject to a phase-out tariff elimination that will conclude in 2033.

Goods originating from Peru that are subject to the phase-out period include:

• chicken;
• pork;
• dairy products;
• asparagus;
• oranges;
• lemons;
• cotton yarn;
• cotton fabrics;
• textured polyester yarn;
• carpets;
• cloth; and
• garments.

The CPTPP has a self-certification of origin mechanism through a free form that the exporter or producer of the goods must complete. This will facilitate and simplify the certification of origin process by saving time and reducing paperwork. In some cases, the CPTPP regulates the certification of origin issued by the importer of the goods.

For further information on this topic please contact Edmundo Elías-Fernández, Daniel Torres-Güémez or Daniel Ascencio-Zamarripa at Ramos, Ripoll & Schuster ​by telephone (+52 55 1518 0445) or email ([email protected], [email protected] or [email protected]). The Ramos, Ripoll & Schuster website can be accessed at www.rrs.com.mx.