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Statement by Mr. LI Enheng

Minister and DPR of China

on WTO Trade Policy Review of Mexico

 (11, Feb, 2008)

Thank you, Mr. Chairman,

I would like to join the previous speakers in welcoming the Mexican delegation headed by H.E. Ms. Leycegui, Vice Minister for International Trade Negotiations, and in thanking her for her comprehensive statement. I also wish to thank the Secretariat and the Mexican government for the tremendous efforts they made in preparing this review including the written responses made by the latter to China’s questions although we still need more time to study these responses. Our thanks also go to the discussant, Ambassador Uribe, for her insightful observations.

Mr. Chairman, China is pleased to note that, during the period under review, the Mexican economy has achieved relatively fast growth, with an average annual growth rate of 3.9 percent during 2004-2006 period. This indicates that the Mexican economy fully recovered from the stagnation during 2001-2003. We also appreciate the efforts of the Mexican government in increasing the transparency of its trade regime towards further liberalization of its trade policy.

Mr. Chairman, the period under review has witnessed an ever closer trade relationship between China and Mexico. Our two way trade volume has been increasing at an annual rate of more than 30%. Bilateral investment has also been increasing rapidly. Now, Mexico is China’s No.1 trading partner in Latin America. In 2007, trade between our two countries reached US$15 billion. Mexico’s imports from China are mainly concentrated on product groups corresponding to telecommunications and office parts and equipment, and other electrical machinery, most of which represent intermediate inputs that would help enhance the competitiveness of the Mexican production sector. Mexico’s export to China concentrates on metal products, auto parts, machinery and equipment.

Having achieved above, Mr. Chairman, it is our belief that there is still much room for further improvement in Mexico’s trade policy. Examples in the area of trade in goods include the high bound tariff rates, the large difference between the bound MFN rates and the applied ones and the high tariffs on agricultural products. In the area of trade in services, there are still quite a number of sectors or sub-sectors which should be open to market access for WTO Members and for national treatment.

For China in particular, our major concern lies in the area of trade remedy measures by Mexico. As a provisional arrangement under Section 17 of China’s Protocol of Accession over the past 6 years, Mexico still maintained numerous antidumping measures against thousands of products from China which are not in conformity with WTO rules. However, it should be underlined that the Protocol also requests that WTO rules should apply after 6 years of China’s accession. Regrettably, up to this moment, those measures in question which are not in conformity with WTO rules and with extremely punitive duties are still in place. Several rounds of negotiations have been undertaken between China and Mexico recently but no solution has yet been achieved. China would like to urge Mexico to honor its commitments and obligations within the WTO and take concrete steps to bring such measures into conformity with WTO rules at an early date. In this regard, we appreciate the questions and concern raised by Canada to Mexico.

On the multilateral aspect, the active role played by Mexico in the Doha Development Round negotiations is widely recognized by other Members. We particularly appreciate the personal efforts made by Ambassador Mateo as Chairperson of the CTS-SS for the negotiations in services. China believes that Mexico will continue to play such a role in the multilateral trading system and we look forward to working closely with Mexico and other Members for a successful conclusion of the Doha Development Round.

Finally, we wish the trade policy review of Mexico a success.

Thank you, Mr. Chairman.