Mexico and Israel signed a free trade agreement in 2000, which came into effect in 2001. This agreement has been beneficial for both countries, as it has increased trade and investment opportunities. The Mexico-Israel Free Trade Agreement (MIFTA) covers a wide range of products and services, including agriculture, textiles, industrial goods, and telecommunications.
One of the key aspects of any free trade agreement is the rules of origin. Rules of origin determine which products qualify for preferential treatment under the agreement. This means that only products that meet specific criteria can benefit from reduced tariffs or duty-free treatment. The rules of origin for the MIFTA are designed to ensure that only products that are genuinely produced or manufactured in Mexico or Israel can enjoy preferential treatment under the agreement.
The rules of origin for the MIFTA are based on the principle of “wholly obtained or produced.” This means that products must be wholly obtained or produced in one of the signatory countries to qualify for preferential treatment. For example, if a product is made in Mexico using raw materials from Israel, it would not qualify for preferential treatment under the MIFTA. However, if the same product is made in Mexico using raw materials sourced within Mexico, it would be eligible for preferential treatment under the agreement.
In addition to the “wholly obtained or produced” principle, the MIFTA also includes specific rules for certain products. For example, for agricultural products, the rules of origin require that the product be grown or raised in the signatory country, and that a certain percentage of the value of the product must come from materials originating in the signatory country. Similarly, for textile products, the rules of origin require that the yarn, fabric, and any other inputs used in the product must be sourced from the signatory country.
The rules of origin for the MIFTA are designed to ensure that only products that are genuinely produced or manufactured in Mexico or Israel can benefit from reduced tariffs or duty-free treatment. This helps to prevent third-party countries from taking advantage of the agreement by using Mexico or Israel as a transit point for goods that do not meet the rules of origin criteria.
Overall, the Mexico-Israel Free Trade Agreement has been a successful agreement for both countries. The rules of origin are an important aspect of the agreement, as they help to ensure that only genuine products benefit from preferential treatment under the agreement. As a professional, it is essential to understand the rules of origin when writing about the Mexico-Israel Free Trade Agreement, as this is a crucial aspect of the agreement that affects trade and investment between the two countries.