Colombia, Mexico and Venezuela signed a free trade agreement on 13 June 1994. The trilateral agreement came into force on 1 January 1995. In May 2006, Venezuela informed its partners of its intention to withdraw from the agreement, and by November 2006 Venezuela had officially withdrawn. The agreement between Mexico and Colombia remains in force. Since then, the two countries have extended their agreements and continued to liberalize trade. Negotiations on the expanded bilateral trade agreement began in August 2009 and were completed in 2011. The revised extension of the Mexico-Colombia Free Trade Agreement came into force on January 1, 2011. It contains five provisions relating to market access, rules of origin, a regional trade integration committee, the official duties of the Treaty Administrative Commission, 28 At the 115th Congress, issues of concern related to trade and economic relations with Mexico may be the subject of a possible renegotiation of the North American Free Trade Agreement (NAFTA) and its implications, to advance Mexico`s foreign trade policy with other countries, Mexico`s intentions, multilateral or bilateral free trade agreements with Asian and Pacific countries, economic conditions in Mexico and the labour market, and the status of Mexican immigration to the United States. This report provides an overview of Mexico`s free trade agreements, the reasons for trade liberalization and free trade agreements, as well as trade trends with the United States and other countries around the world. The European Commission, the EU and Mexico agree to speed up trade negotiations, Brussels, Belgium, 1 February 2017, trade.ec.europa.eu/doclib/press/index.cfm?id=1617. Since Mexico began liberalizing trade in the early 1990s, its trade with the world has grown rapidly, with exports growing faster than imports.
Mexico`s exports to all countries increased by 515% between 1994 and 2016, from $60.8 billion to $373.9 billion. Although the economic downturn of 2009 led to a decline in exports, the value of Mexican exports recovered in subsequent years. Total imports also increased rapidly, from $79.3 billion in 1994 to $387.1 billion in 2016, an increase of 388%. The trade balance went from a deficit of $18.5 billion in 1994 to a surplus of $7.1 billion and $6.5 billion in 1995 and 1996. Since 1998, Mexico`s trade balance has remained in deficit at $13.2 billion in 2016. Mexico`s top five exports in 2016 were passenger cars, motor vehicle parts, motor vehicles for freight transport, automatic information processing machines and electrical devices for telephones. Mexico`s top five imports were spare parts, refined petroleum products, electronic integrated circuits, telephone electrical devices and automatic information processing machines. Because NAFTA is more than 20 years old, renegotiations can address issues that are not included in the agreement.
The themes of the renegotiation could be trade in services, rules of origin, public procurement, protection of intellectual property rights, labour issues and the environment. Mexico has said it is considering modernizing NAFTA, but it is not clear how that would happen. Mexican government officials indicated that Mexico may attempt to extend NAFTA negotiations to bilateral or trilateral cooperation on several issues, including security and immigration.51 In 1991, Mexico and Nicaragua began negotiations for a free trade agreement. At the second Tuxtla Gutierrex Summit, Mexico and Nicaragua committed, in the joint declaration and action plan, to conclude these negotiations in the first half of 1996.