23 July 2007
Australia-Mexico IPPA enters into force
The Investment Promotion and Protection Agreement (IPPA) between Australia and Mexico, signed in Mexico City on 23 August 2005, entered into force on 21 July 2007. The IPPA is an important development in the growing economic relationship between Australia and Mexico. The Agreement provides enhanced protection and fair and equitable treatment for bilateral investments in each country.
Mexico was Australia’s largest merchandise trading partner in Latin America in 2006, with two-way trade worth $1.9 billion. Australia’s merchandise exports to Mexico were valued at approximately $846 million, dominated by coal. A growing range of services are also exported to Mexico and the trade in Australian education and training services has been especially strong. Australian direct investment in Mexico is concentrated in the mining and manufacturing sectors and financial services.
To take advantage of the current momentum in the trade relationship between Australia and Mexico, the two countries commenced a Joint Experts Group (JEG) process to investigate ways of strengthening economic links, including the negotiation of a possible Free Trade Agreement some time in the future. JEG meetings were held in Adelaide in April 2007 and Mexico City in June 2007.
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