Economy of Mexico - Trade - Mexican Trade Facilitation and Competitiveness

Mexican Trade Facilitation and Competitiveness

A research brief published by the World Bank as part of its Trade Costs and Facilitation Project suggests that Mexico has the potential to substantially increase trade flows and economic growth through trade facilitation reform. The study examines the potential impacts of trade facilitation reforms in four areas: port efficiency, customs administration, information technology, and regulatory environment (including standards).

The study projects overall increments from domestic reforms to be on the order of $31.8 billion, equivalent to 22.4 percent of total Mexican manufacturing exports for 2000–03. On the imports side, the corresponding figures are $17.1 billion and 11.2 percent, respectively. Increases in exports, including textiles, would result primarily from improvements in port efficiency and the regulatory environment. Exports of transport equipment would be expected to increase by the greatest increment from improvements in port efficiency, whereas exports of food and machinery would largely be the result of improvements in the regulatory environment. On the imports side, Mexican improvements in port efficiency would appear to be the most important factor, although for imports of transport equipment, improvements in service sector infrastructure would also be of relative importance.