Cross-border defence procurement and trade in Mexico

International trade rules

What export controls limit international trade in defence and security articles? Who administers them?

In principle, the export of goods from Mexico is regulated by the Mexican Customs Law, the Mexican General Import and Export Duties Law and any other applicable law (national or international) depending on the tariff code in which the defence and security article is covered.

In this regard, on 25 January 2012, Mexico joined the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies (WA), becoming the 41st state participant in the agreement. The WA has been established to contribute to regional and international security and stability by promoting transparency and greater responsibility in transfers of conventional arms and dual-use goods and technologies, thus preventing destabilising accumulations. The aim is also to prevent the acquisition of these items by terrorists.

At the national level, on 16 June 2011 Mexico published in the Mexican Official Gazette the ‘Agreement in which the export of conventional weapons, their parts and components, dual-use goods, software and technologies that could be diverted for the manufacture and proliferation of conventional arms and weapons of mass destruction are subject to a prior permission from the Ministry of Economy’.

On the other hand, on 30 January 2007 the ‘Agreement that establish the classification and codification of goods whose importation or exportation is subject to Regulation by the Secretary of National Defence’ was published in the Mexican Official Gazette.

In this regard, the defence and security articles will be regulated depending its tariff code and may need permission form the Ministry of Economy and National Defence.

Present information does not include nuclear material or use of pesticides, fertilisers and toxic substances.

What domestic preferences are applied to defence and security procurements? Can a foreign contractor bid on a procurement directly?

Since all defence and security procurements are exempted from the traditional bidding process and may granted via direct award instead, there are no applicable domestic preferences.

Are certain treaty partners treated more favourably?

No.

Are there any boycotts, embargoes or other trade sanctions between this jurisdiction and others?

As part of the United Nations, Mexico agreed to comply with the decisions of its Security Council and, through its national policies, ensure that transfers of arms, dual-use goods and technology do not contribute to the development or enhancement of military capabilities that undermine these goals, and are not diverted to support such capabilities.

In this regard, on 29 November 2012 Mexico published in its official gazette the ‘Agreement establishing measures to restrict the export or import of various goods to the countries, entities and persons indicated’, by which Mexico restrict the exportation, among others, of defence and security articles to the countries established in such Agreement.

Are defence trade offsets part of this country’s defence and security procurement regime? How are they administered?

Not applicable.