Basic legal aspects of international trade and the Mexican perspective

International trade is a fundamental pillar for the economic development of any country; understanding the legal aspects and Mexico’s position in this field is crucial to seize opportunities and face challenges. Our country plays an important role in global value chains, both backward and forward; as it is primarily involved in wholesale and retail trade, the trade of motor vehicles and storage, and the production of computers, and is mainly linked to economies such as the United States, Canada, Japan, and China. This participation has grown over the last 15 years at an average rate of 6%.

Historically, Mexico has adopted a policy of trade liberalization, actively participating in international agreements and organizations, and currently has 18 free trade agreements with more than 50 countries and 32 agreements for the promotion and reciprocal protection of investment, as our nation is in a privileged position due to its geographic proximity to the United States and a variety of trade objectives.

For this reason, understanding the basic legal aspects of international trade is vital for any company or individual that wishes to participate in international commerce. Below, we present some of the basic legal aspects and concepts that regulate these activities:

International Trade Agreements: Free Trade Agreements (FTAs) are agreements between two or more countries to reduce or eliminate trade barriers. Mexico has several FTAs, the most well-known being the USMCA (Agreement between Mexico, the United States, and Canada).

Customs Regulation: Tariffs and duties are taxes imposed by governments on imports and exports. It is important to know the tariff rates applicable to the products intended for trade.

Tariff Classification: Products must be correctly classified to determine the applicable tariffs. This classification is carried out in accordance with the Harmonized System for the Description and Coding of Goods.

International Contracts: Incoterms are international commercial terms that define the responsibilities of sellers and buyers in the delivery of goods.

Intellectual Property: The protection of trademarks and patents is essential to safeguard intellectual property rights in foreign markets, in order to prevent infringements and legal disputes.

At HG Abogados, we help you legally materialize your company’s projects so you can leverage them in the global market. Contact us so that together we can take them to the next level.