ACTIVITY 4 INTERNATIONAL CONTRACTS

Activity 4

International Contracts

Garcia, Anna Ramirez, Carolina Fuentes, FernandoDiaz, Luis Martínez, Miriam Gallardo, Perla Hernandez, Sarah

The student will analyze the most important treaties signed by Mexico and their impact on foreign trade.

Description

To understand the background and evolution of the three most significant treaties that Mexico has entered into, depicted through a timeline and the historical context of their signing.

Objective:

Create a timeline highlighting the background and key developments of the USMCA (previously NAFTA), the EU-Mexico FTA, and the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership).

The agreements seek to integrate Mexico more deeply into global and regional supply chains, consolidating its role as a key commercial and export hub.

Foster Regional and Global Economic Integration:

What do these treaties have in common?

All agreements expand access for Mexican products to significant international markets, whether through integration into large free trade zones (USMCA), access to new markets in the Asia-Pacific region (CPTPP), or expansion into European markets (TLCUEM).

Facilitate Access to New Markets:

Each agreement has contributed to a significant increase in trade, whether between participating countries or with new regions, reflecting growth in exports and imports for Mexico.

Increase Trade:

At the regional level, NAFTA turned North America into the largest free trade zone in the world, fostering the integration of internationally competitive value and production chains. This agreement positioned Mexico as a key trading partner for the United States and Canada, consolidating our country as an export platform to global markets. Since NAFTA came into effect, trade between Mexico, the United States and Canada has tripled, totaling 996.569 billion dollars in 2016; that is, almost 2 million dollars per minute.

Since 2000, Mexico and the European Union have had a Free Trade Agreement. Trade has grown fourfold since it came into force, reaching $72 billion in 2017.

With the CPTPP, Mexican products will have access to six new markets (Australia, Brunei Darussalam, Malaysia, New Zealand, Singapore and Vietnam) that together add up to 155 million potential consumers. The CPTPP will also allow Mexico to deepen access to the Japanese agri-food market and consolidate tariff preferences with Canada, Chile and Peru.

What significant events occurred in our country and in the world at the entry into force of each one?

Describe three scenarios that illustrate practices and customs in international trade.

The international treaties NAFTA, EU-Mexico FTA, CPTPP, and USMCA have significantly shaped Mexico’s economy by expanding its access to key global markets. NAFTA (1994) integrated Mexico into North America’s free trade zone, boosting trade and investment, especially in manufacturing and agriculture. The EU-Mexico FTA (2000) diversified Mexico’s trade, increasing exports to Europe. The CPTPP (2020) opened new markets in the Asia-Pacific, further diversifying trade and reducing reliance on the U.S. The USMCA (2020) modernized NAFTA, adding provisions on labor, environment, and digital trade, ensuring Mexico’s continued competitiveness. These agreements have strengthened Mexico’s global economic integration and growth.

Conclude with a discussion on the significance of these international treaties for Mexico.

Thank you for your attention!

Your Latin roots benefit you in business in France, since you share numerous mental traits with them. An example of this connection is that one of its most recognized brands, Balenciaga, was founded by the Spanish Cristóbal Balenciaga. The French are extremely proud of their culture, which they have developed over two thousand years around their language. Speaking French will always be an advantage for you, while communicating only in English can be seen as a disadvantage.

In Germany, people tend to have a meticulous and precise approach to everything they do, unlike in many Latin cultures, where perfectionism is not as common and is sometimes viewed with some suspicion. Therefore, it is important that every aspect of the proposal is carefully considered and detailed. This will impress the Germans and help you gain their trust.

China is an ancient culture, so making long-term commitments and deals is tattooed on your mind. This can sometimes clash with Latin culture, which is more in line with the short term. And this represents a great challenge for Latin entrepreneurs and businessmen because the financial remuneration will not be entirely quick given that their projects are long-term.