Mexico and Spain were intensely linked for centuries. Today, although to a lesser extent, the Hispanic-Mexican relationship remains strong and important. As in the colonial past, trade relations are a key point in the relationship between both nations. Of course, this time in a much more fair and egalitarian way.
In this article I am going to try to capture the most relevant things about how to export from Mexico to Spain. Much of the article will deal with the Mexico-EU FTA and its imminent reform. Later we will go to the more technical and concrete part, where we will talk about the necessary documentation, procedures and tariffs.
Commercial relations between Spain and Mexico
Trade relations between Spain and Mexico in the last three decades have been very good. Especially since 1986, when Mexico joined the GATT and liberalized its foreign trade policy. From there, Mexico's trade policies take a path similar to that of States adhering to the GATT, or the current WTO.
However, it was not until the year 2000, with the entry into force of the Mexico-European Union Free Trade Agreement, when trade exchanges increased very noticeably between the regions.
Imports into Spain from Mexico
Spain's imports from Mexico are large. 1.25% of the total imported by Spain, which places it as the second Latin American supplier. Only Germany and Italy import more from Mexico within the European Union.
However, there is no powerful diversification of Mexican imports. In 2020, more than 50% were fossil fuels, a figure that has reached above 80% in some years. This is followed by mechanical machinery, optical devices, vehicles and electrical equipment.
Exports from Spain to Mexico
Mexico is the main Latin American receiving market for services produced in Spain. Most of these services are technological and business in nature (engineering projects abound).
Agreements between Mexico and the European Union
2000: Mexico-EU FTA
When limiting the central line of this document to how to export from Mexico to Spain, it is mandatory to mention the agreement Mexico-EU FTA. Since 2000, free trade in goods was established between both actors. In 2001 certain services were liberalized.
This commercial agreement has as general lines:
- Customs tariffs on manufactured products are eliminated, except for food and beverages.
- Customs procedures on goods for export become simpler due to the cooperation given in this agreement.
- This agreement meant a 148% increase in trade between the EU and Mexico since the agreement came into force, positioning Mexico as an important trading partner for the community bloc.
2018: renewal of the FTA
In 2018, Mexico and the Union decided to renew the FTA trade agreement, an agreement that is expected to be signed and come into force shortly. Briefly, this new FTA treaty maintains and renews some parts:
- It facilitates the access of community companies to the Mexican business market in the financial, telecommunications, transportation, digital commerce or services sectors, among others.
- It gives similar treatment to Mexican suppliers as community suppliers (by the Mexican authorities).
- Improvement in access to the services market, especially on the Mexican side, which has liberalized parts of sectors such as finance, energy and telecommunications.
- It eliminates Mexican customs duties on almost all food and beverages over a period of seven years (which was something not included in the previous agreement).
- Protects the geographical indicators of the Union. This will eradicate the marketing of many imitations of food and drink products from the EU.
- Protects sensitive EU products by limiting Mexican imports in the event of a sudden increase in imports that threatens community producers.
- Facilitates compliance with Mexican technical requirements on products. In this way, product requirements are reduced, so there are fewer differences between companies (both Mexican and EU).
- Regulates digital commerce. Eliminates some barriers to digital commerce between both actors with more commercial security for both consumers and sellers. An example of this is the disappearance of customs duties on electronic transmissions.
- It facilitates access to both markets for SMEs.
- Establishes a high level of production from Mexican and EU investments.
- It establishes that differences or disputes between companies will be resolved by a new Investment Court System.
How to export from Mexico to Spain
Once the two FTA treaties have been briefly explained, it is time to get into more specific matters. As mentioned above, the central topic of this document is to talk about the export of goods and services from Mexico to the European Union.
Documentation necessary to export goods and services to the EU
- Register with the Tax Administration Service of Mexico and the Federal Taxpayer Registry.
- Register in the registry of exporters and importers.
- Present the following general commercial documentation:
- Single administrative document (DUA): necessary for all commercial operations worldwide.
- DV I. It is the declaration that the merchandise has passed through customs.
- Specific documentation for transport: insurance and shipping declarations (bill of lading).
- Commercial invoice or packing list.
- Certificate of origin. To justify that the product was produced in Mexico, in this case. Since the EU has a trade agreement with Mexico, the document to be presented specifically would be the model EUR-1.
Documentation to market and distribute products in the European Union
It must be taken into account that since there is a preferential agreement in force It matters what is included in this:
- Foreign health certificate for the following types of merchandise: animal origin, plant origin, fishing origin and pharmaceutical origin.
- Knowledge of the TARIC code of the product. Thanks to this code, the Mexican exporter will know the information about his product. You will be able to know if the product is prohibited for import, has import restrictions, if it is condemned to compensatory products or if it is governed by measures anti dumping concrete.
- Special documentation (specified in the TARIC code) for certain products: Prior import notification, administrative import authorization, community surveillance document, community import license, AGRIM import certificates (only for agricultural and livestock products), import permits CITES and CITES certificates.
- CE marking: with it the product can be freely marketed. As I already mentioned in the previous article, it is not necessary for all products, but it is necessary for certain products that have special safety requirements. They are: toys, construction products, personal protective equipment, sanitary products, boilers, civilian explosives, pleasure boats, elevators, radio equipment, cable people transportation installation, custom instruments, electrical and electronic devices, machines, articles pyrotechnics, weighing instruments, simple pressure vessels or gas appliances.
Payment of tariffs
Regarding the payment of tariffs, it must be clarified that since there is a free trade agreement on certain products and services between Mexico and the EU, it will depend on the product and whether it is included in the Treaty to know which specific tariff to apply.
I already commented in my previous article about the EU trade policy, that if there is a preferential agreement between the EU and a country, tariffs and customs procedures, among others, can be reduced or eliminated.
The tariff in Spain is usually 21%, with the option to reduce it to 10% or even 4%. This is because Spain is part of the European Union and has a free trade agreement with Mexico. They are mainly manufactured products (not counting drinks and food). Therefore, the majority of products that are imported from Mexico to Spain appear to not come from the sectors regulated in the Mexico-EU FTA.
In any case, as I have explained in previous articles and in this document as well, I recommend knowing the TARIC code, very useful in terms of getting to know the type of tariff and documents to use, since it makes the work much easier.
Conclusions
Mexican exporters wishing to introduce their products or services into Spain are advised to check whether their product is covered by the current EU-Mexico Free Trade Agreement. If so, they would benefit from significant tariff reductions and export facilities. If not, it is recommended to know the TARIC code, have their documentation in order, and, above all, always seek the best conditions throughout the export process to ensure a successful foreign trade transaction.
Do you dare to export to Spain? Meet with an RRYP consultant and take off in international markets.
Internationalist trained at the Complutense University of Madrid with broad interest in international climate issues, micronations and the Latin American region. Master in International Trade.
