Concluding remarks by the Chairperson

1. This fifth Trade Policy Review of Mexico has provided a welcome opportunity to achieve a better understanding of its trade and investment policies. The Government and Secretariat reports have provided a good basis for this analysis. I would like to thank Dr Francisco Rosenzweig, Sub-Secretary of Foreign Trade in the Ministry of Economy, head of the delegation of Mexico, the rest of the delegation from Mexico City and colleagues from the Mission in Geneva for their constructive engagement in this meeting and their strong commitment to this trade policy review exercise. I would also like to thank Ambassador François Riegert, Permanent Representative of France to the WTO, for his insightful intervention as discussant. Mexico's written answers to the large number of advanced written questions have been well appreciated by Members.

2. Mexico was congratulated by Members for having overcome the global economic crisis in an efficient manner. Despite being severely hit by the crisis in 2009, the Mexican economy had managed to recover through the implementation of countercyclical fiscal and monetary policies. Solid economic growth and trade performance had followed since 2010, although unemployment remained slightly higher than before the crisis.

3. Members highlighted Mexico's active and constructive role in the multilateral trading system and in the Doha Development Agenda, particularly in the areas of trade facilitation and services. Mexico was also commended for its strong commitment in the negotiations to finalize the DDA. Mexico was encouraged to join the Agreements on Information Technology Products and on Government Procurement.

4. Members also noted Mexico's active participation in preferential trade agreements, summing 12 FTAs and eight partial scope agreements as of late 2012. Mexico noted that it considered these agreements to be a complement to the multilateral trading system.

5. Members congratulated Mexico for its unilateral trade liberalization programme, which had lowered the average tariff from in 11.2% 2007 to in 6.2% 2012 and for the simplification of its tariff structure. They also commended Mexico for being one of the few WTO Members to have lowered tariffs during the economic crisis. In addition, Mexico was praised for the simplification of its customs procedures and for the implementation of a single window.

6. Amidst this overall positive assessment, Members highlighted some areas where improvements could be made:

• Geographical concentration of trade: Members noted that Mexico's trade remains highly concentrated on a single market, the United States, and encouraged Mexico to continue seeking market diversification.
• Investment regime: Members highlighted that restrictions to foreign capital participation remained important. A number of activities, were reserved to the State or to Mexican nationals or companies. They encouraged Mexico to review the current investment regime, in particular as regards investments in sectors such as petroleum, electricity and telecommunications. Mexico indicated that a reform process in the area of services had already started.
• Tariffs: Members noted that, despite the implementation of its unilateral trade liberalization programme, which had focused mainly on industrial products, tariffs on agricultural products remained relative high (20.9% in 2012) and in some cases there were tariff peaks. Mexico was thus encouraged to lower its tariffs on these products.
• Non-tariff barriers: Members noted the persistence of some non-tariff barriers to trade and encouraged Mexico to remove reference prices and simplify its system of SPS measures. Mexico replied that these reference were only applied to used cars and were compatible with WTO rules.
• Competition: Members welcomed efforts made to strengthen the role of the competition regulatory body and improve competition enforcement but exhorted Mexico to undertake further reforms to improve competition in the energy and telecommunications sectors, among others.
• Support programmes in agriculture: Members questioned the efficiency and the need for the large number of Mexico's support programmes in agriculture, and requested further information regarding such programmes. Mexico replied that support had been reduced in the last few years.

7. In conclusion, Members commended Mexico for its economic performance during this review period, while cautioning it against geographical concentration in its trade. Members welcomed the new initiatives announced by Sub-Secretary Rosenzweig to improve labour productivity and reform the energy sector as well as to promote competition and foreign investment in the telecommunications and broadcasting sectors.

8. The participation of a large number of delegations in this meeting and the almost 500 questions posed during this Trade Policy Review indicated the clear importance of Mexico as a trading partner for WTO Members and of its active role in the multilateral trading system. In closing, I would like to thank the Mexican delegation, all the other delegations, the discussant and the Secretariat for this successful review of the trade policies of Mexico.