Trade Policy Review of Mexico February 11 and 13, 2008 Statement by the Republic of Korea
Thank you, Mr. Chairman,
I would like to join the previous speakers in extending a warm welcome to the delegation of Mexico for its fourth trade policy review and to especially thank vice minister Beatriz Leycequi for her informative presentation. Let me also express my thanks to ambassador (Claudia) Uribe for her insightful comments and to the Secretariat for its comprehensive report which serve as a good basis for today’s discussion.
Mr. Chairman, we are very pleased to attend this TPR. Korea and Mexico have steadily increased their trade relations over the years, reaching a bilateral trade volume of about 5.9 billion US dollars during the first eleven months of 2007. Mexico is Korea’s first largest export market in the Latin American region, and eighth largest export market in the world. Korea’s investments in Mexico have also significantly increased, amounting to 490 million dollars for the first half of 2007. Furthermore, Korea and Mexico have initiated bilateral FTA negotiations in December last year. Korea looks forward to deepening and broadening its bilateral economic relationship with Mexico through the successful conclusion of these bilateral negotiations in the near future.
Korea appreciates Mexico’s firm commitment to the Multilateral Trading System, including its active participation in the DDA negotiations. I would particularly like to applaud the dedication and tireless efforts put forward by Ambassador De Mateo in the services negotiations. Korea looks forward to Mexico’s continued contribution to the successful conclusion of the DDA negotiations.
Korea welcomes Mexico’s solid economic performance and continued trade liberalization since its previous review in 2002. We have submitted a number of questions regarding Mexico’s trade policies and measures. We appreciate the replies provided by the Mexican delegation this morning and will carefully examine them. Now I would like to highlight a few issues of particular concern to our country.
Firstly, we would like to express our concern over the fact that Mexico has continued to maintain the discriminatory measure referred to as Anexo III, requiring imports of textiles, clothing and footwear from some Asian countries, including Korea, to be subject to special certifications of origin. This measure has been put in place since 1994 and Korea has already raised this issue in Mexico’s previous TPR in 2002. We would once again like to request the Mexican government to remove such discriminatory measure in light of the
MFN principle.
Secondly, regarding customs valuation, Korea would also like to express its concern over Mexico’s practice of the estimated price mechanism on certain products and post- importation verifications. While taking note of the discussion that took place in the Customs Valuation Committee, Korea urges Mexico to apply those measures in a manner to facilitate trade in accordance with the provisions of the Customs Valuation Agreement.
Thirdly, as regards government procurement procedure, Mexican law provides a preferential price margin of up to 10% in favor of local suppliers in international tendering.
Korea encourages Mexico to eliminate or at least lower the preference margin to provide more procurement opportunities for international suppliers. Furthermore, Korea would welcome Mexico’s accession to the Agreement on Government Procurement.
Finally, Mexico has maintained a de-facto prohibition on the import of used motor vehicles of all kinds for environmental reasons, while the restriction on these products originating from the US and Canada is being gradually removed in accordance with the NAFTA.
Korea wishes to know if Mexico has any plans to reduce such restriction on the import of used vehicles from non-NAFTA members in the near future.
Mr. Chairman, let me conclude by reiterating my sincere appreciation to the Mexican delegation and the Secretariat for their hard work in preparing for today’s meeting.
I thank you, Mr. Chairman.
