Australia-Mexico IPPA enters into force

Media Release

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.

Media Inquiries: DFAT Media Liaison on 02 6261 1555