MEXICO CITY—Mexico is confident that an agreement on a major
free-trade pact spanning the Pacific Ocean can be reached in late
July in what would be a milestone with the potential to reshape
economic ties between Asia and the Americas, a top government
official said Monday.
"Around 10% of issues are still to be agreed, but I hope we can
seal an agreement in a final round of negotiations at the end of
the month," Economy Minister Ildefonso Guajardo said in an
interview. He said leaders could sign an agreement before the end
of the year.
The Trans-Pacific Partnership would lower trade barriers and set
new standards for business investment among 12 countries of the
Pacific rim, including the U.S., Japan, Canada, Australia, Mexico,
Chile and Singapore.
The group would have combined economic output of about $28
trillion, or around 39% of global gross domestic product. Some
experts consider the partnership to be the most ambitious trade
deal since the North American Free Trade Agreement was signed in
1993, linking the U.S., Canada and Mexico in a free-trade zone.
One of the main outstanding issues is the exact terms for
intellectual-property protection, Mr. Guajardo said, as the U.S.
has been pushing for stronger copyright protections and broader
protection for patents.
Final details on access to several politically sensitive markets
such as the U.S. and Japanese agricultural sectors and on some
investment agreements among participants have also yet to be
resolved, he added.
The negotiations recently accelerated after U.S. President
Barack Obama was granted in late June wide powers to negotiate a
final deal, allowing him to put the agreement before Congress for
an up-or-down vote without amendments.
"That was a very important step. Many of the countries,
particularly the Asians, were waiting for this to happen before
making their final offers," Mr. Guajardo said.
The Trans-Pacific deal could yield annual global income gains of
$295 billion, according to a report by the Peterson Institute for
International Economics, although some detractors in the U.S. have
argued that the agreement will translate into lower wages and job
losses.
As China isn't part of the agreement, some experts also see the
deal as a geopolitical move by the U.S. to bolster its presence in
Asia and balance China's power in the Pacific.
For Mexico, the Pacific trade deal could strengthen its position
in fast-growing Asian markets and increase limited trade exchanges
with the region. In 2014, more than 80% of Mexico's nearly $800
billion in total trade was with the U.S., Canada, Europe and Latin
America.
Aside from Nafta, Mexico has signed free-trade agreements with
46 countries, including the European Union and many Latin American
countries. But in Asia, Mexico's only trade agreement is with
Japan.
"Our strategic alliances in Asia have been limited to Japan. The
Trans-Pacific pact would allow us to change that," Mr. Guajardo
said.
Mexico currently exports mostly minerals, oil and food to its
main Asian trade partners China, Japan and South Korea. The bulk of
Mexican imports from those markets are components and accessories
for local automotive and electronic goods assembly.
Write to Juan Montes at juan.montes@wsj.com
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