A hope for Mexico’s President Vincente Fox is that Japan will open factories in his country since they would then gain access that is tariff-free to its other trading partners. Mexico has 11 free trade agreements with 42 countries.
For the Japanese, there is reduction and eventual elimination of tariffs on automobile imports, electronics and steel. Mexico expects a boost of more than 10% a year in exports to Japan.
Japanese tariffs on agricultural products will be lowered over a three to seven year period, although for bananas, the period will be 10 years and pineapples and pineapple juice, candy, wheat and pastas will be excluded altogether for three years.
This is only Japan’s second free trade agreement. The other is with Singapore.
