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1994-05-09
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<text>
<title>
Mexico Satisfied with GATT Results
</title>
<article>
<hdr>
Foreign Broadcast Information Service, December 17, 1993
Mexico Satisfied with GATT Results
</hdr>
<body>
<p> [Report by Eduardo Porter and Gerardo Arreola]
</p>
<p> [Text] Geneva, 15 Dec (NOTIMEX)--Protected by NAFTA and
afforded the opportunity to negotiate because of its association
with the world's most powerful economy, today Mexico delcared
itself satisfied with the results of GATT's Uruguay Round of
talks. "Mexico benefits from the results of these negotiations,"
Herminio Blanco, commerce under secretary for internatinal
negotiations, said at the close of the talks. Meanwhile, a
delegate from another Latin American country pointed out that this
benefit "is the result of associating with one of the world's
great commercial powers."
</p>
<p> Mexico, 70 percent of whose trade is covered by NAFTA,
faced the negotiations for the other 30 percent of its trade
calmly and discovered that its ties with the world's commerical
powers protect it. In his speech to the other 116 GATT
delegates, Blanco said the country did not have to yield too
much in tariff reductions and that the country won the right to
subsidize enterprises that face environmental protection-related
costs.
</p>
<p> "Mexico is setting its tariffs at 35 percent," he said.
This entails a reduction from 50 percent to 35 percent in the
country's tariff ceiling, but this does not change current
tariffs which average 10 percent. With this concession, "our
trade partners have acknowledged the unilateral commercial
opening we have established over the past few years," he said.
</p>
<p> With some trade partners, in particular the EC, the
negotiations on market access and tariff reductions are still
incomplete, but they are proceeding satisfactorily, according to
Blanco. In fact, he said, Mexico proposes to keep its highest
consolidated tariff at 50 percent for those products whose top
exporter remains the EC. He said the country had good access to
other markets, however, and that from now on Mexican beer will
pay no tariffs because it is included in the "zero by zero"
tariff agreements with other countries.
</p>
<p> The tariff agreements must be extended to the entire world
according to the "most favored nation" clause, which is GATT's
cornerstone. Other Latin American countries were given less
favorable treatment. Brazilian Ambassador to GATT Luis Felipe
Lampreia bitterly pointed out that the results of the Uruguay
Round of talks "sometimes left us with contradictory feelings."
</p>
<p> Latin America's trade clout experienced last-minute
problems with the EC. These problems should be resolved through
negotiations to be held no later than 15 April, a date the EC
threateningly set as a deadline to withdraw from talks on
reductions in tariffs on Brazilian orange juice.
</p>
<p> While Central American banana producers continued to hold
urgent negotiations because of Europe's quotas on bananas, Mexico
complained about general items, such as the lack of greater
subsidies for agriculture in the Uruguay Round of talks. Mexico
also expressed dissatisfaction over the missed chance to
liberalize financial services, maritime transport, and
audiovisual services, whose true opening was postponed.
</p>
<p> Regarding "tariffication"--substituting nontariff barriers
for agricultural and livestock tariffs--Mexico did not have to
yield because it had already negotiatied this very same process
with the United States and Canada in the trilateral treaty.
Mexico, however, was permitted to impose a tariff of 215 percent
on corn, the nation's leading product.
</p>
</body>
</article>
</text>