The Trump administration`s initial trade policy includes the U.S. withdrawal from the TPP and the possibility of a renegotiation of NAFTA. With respect to the TPP, some TPP signatories have announced their intention to advance a similar agreement without the United States, which could adversely affect U.S. competitiveness in some markets. Canada and Mexico have many free trade agreements with other countries and can continue to try to diversify trade through free trade agreements. Mexico`s economy minister said Mexico was ready to negotiate a new agreement with the Asia-Pacific, similar to the TPP and China`s involvement in the talks.50 Continued free trade agreements with other countries is a way to bring benefits to the economy, but also to reduce its economic dependence on the United States. The United States is by far Mexico`s largest trading partner. About 80% of Mexico`s exports are exported to the United States and 47% of Mexican imports come from the United States5.In an effort to diversify trade with other countries and increase trade, Mexico has a total of 11 trade agreements with 46 countries (see Figure 1). These include agreements with many countries in the Western Hemisphere, including the United States and Canada, Chile, Colombia, Peru and Uruguay.6 Mexico has also ratified a free trade agreement with Central America (Costa Rica, El Salvador, Honduras, Guatemala and Nicaragua), signed on November 22, 2011. The free trade agreement between the six parties came into force on September 1, 2013. Mexico`s free trade agreement has led the country to become the world`s twelfth largest export economy, with $472.3 billion in exports in 2019. Beyond the country`s production advantages, access to free trade offers benefits to partner countries and businesses. In April 2018, the EU and Mexico reached an “agreement in principle” on the trade side of a modernised global agreement between the EU and Mexico.

Mexico`s heavy reliance on the United States as an export market is a likely motivation for seeking free trade agreements and other regional trade agreements with other countries. The slow pace of multilateral negotiations in the WTO could be another likely factor. Some countries view smaller trade agreements as “building blocks” of multilateral agreements. Other motives could be political. Mexico could try to demonstrate good governance by imperenting political and economic reforms through trade partnerships. The current global agreement between Mexico and the EU contains provisions on domestic treatment and market access for goods and services; Public procurement DPI; Investments Financial services Standards telecommunications and information services; Agriculture; Dispute resolution and other provisions. The agreement also contains chapters on cooperation in a number of areas, including mining, energy, transport, tourism, statistics, science and technology and the environment14. The EU agreed to remove tariffs on 82% of imports from Mexico when the agreement came into force and to remove the remaining tariffs until 1 January 2003.