6. MEXICO

6.1 Overview of the economy

Mexico has a free-market economy with a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. The number of state-owned enterprises in Mexico has fallen from more than 1 000 in 1982 to fewer than 200 in 1999. The Zedillo administration proceeded with privatizing and expanding competition in seaports, railroads, telecommunications, electricity, natural gas distribution and airports. A strong export sector helped to cushion the economy's decline in 1995 and led the recovery in 1996-99. Private consumption became the leading driver of growth, accompanied by increased employment and higher wages. Mexico still needs to overcome many structural problems as it strives to modernize its economy and raise living standards. Income distribution is very unequal, with the top 20% of income earners accounting for 55% of income. Trade with the USA and Canada has nearly doubled since the North American Free Trade Agreement (NAFTA) was implemented in 1994. The government was pursuing conservative economic policies in 2000 to avoid another end-of-term economic crisis, but it still projected an economic growth rate of 4.5% because of the strong USA economy and high oil prices.

6.2 Import policy

Mexico is a member of the Asia-Pacific Economic Cooperation (APEC) agreement and of NAFTA (1 January 1994). Mexico also has a free trade agreement with the EU and EFTA (1 July 2001). Mexico is pursuing additional trade agreements with most countries in Latin America, so as to lessen its dependence on the USA.

Mexico’s applied tariffs are 20% for fish products. The WTO bound tariffs are 35%.

6.3 Fisheries data

Commodity balance (1998)

Gross value of landings (1998, at ex-vessel prices): US$ 1 061 million

6.4 Production

Mexican production fluctuated during the whole decade, but the changes were within a range of 110 000 to 150 000 t. Mexico’s main production species are pelagic, both small pelagics, such as herrings, sardines and anchovies, and large pelagics, such as tunas. The production of all these species had a positive development during the 1990s. The category “miscellaneous marine fish” has showed a severe decline since 1990, but is still one of the biggest species groups produced in Mexico. The species with the biggest relative increase in volume are freshwater crustaceans and shrimp and prawn, and squid, cuttlefish and octopus. Negative development took place for most other species. The largest decreases were for brown seaweed, clams, cockleshells and arkshells, scallops and tilapia. For details, see Appendix.

Figure 22. Total seafood production by Mexico, 1990-1999 (quantity; tonnes)

6.5 Exports

6.5.1 General

Mexico was the 29th-largest exporter in 1998, with exports of 168 719 t, worth US$ 715 million. During the 1990s, exports fluctuated. From 1990 to 1994 there was a small yearly decline, reaching 60 320 t at the lowest, in 1994. In 1995 there was a substantial increase in exports. This development continued through 1996 and 1997, before a small decline again in 1998. Most of Mexico’s export in this period, measured by value, went to the USA, a fellow NAFTA signatory. NAFTA came into force in 1995, coinciding with the increase in the Mexican export.

Figure 23. Total seafood exports from Mexico, 1990-1998 (tonnes; US$)

Table 9. Mexico’s seafood exports, 1995-1999 (value; US$ millions)

6.6 Imports

Mexican imports show a different development. After a peak in 1993-1994, there was a continued decline in both quantity and value. In 1994, 143 808 t was imported, for a cost of US$ 158 million. Imports in 1998 were down to 66 868 t, worth US$ 98 million. The USA is strongly represented in both import and export sectors.

Figure 24. Total seafood imports by Mexico, 1990-1998

6.7 Trade on a commodity basis

6.7.1 Exports

Mexico mostly exports fresh and frozen fish, as well as fresh and frozen crustaceans, but even though exports of these two commodity groups is about equal in terms of quantity, most of the value comes from the latter group. The primary products are frozen shrimps and prawns, which constituted 69% of the total value in 1998.

6.7.2 Imports

Imports are much more varied than exports. This is reflected in the chart for quantity, as all commodity groups are represented, although imports of oil and fats are almost absent from 1998 data. The value stems mostly from oils and fats, and so import value declined in 1998.

Figure 25. Overview of Mexico’s seafood exports, 1990-1998, by commodity group

Mexico export commodity groups 1990 - 1998 - a

Mexico export commodity groups 1990 - 1998 - b

Figure 26. Overview of Mexico’s seafood imports, 1990-1998, by commodity group

Mexico import commodity groups 1990 - 1998 - a

Mexico import commodity groups 1990 - 1998 - b