For your seven billion dollars. Once there is 90 percent risk on the day my SMEs that generate 80 percent give me 20 minutes of your time and I, in return, give you information on the most relevant issues in foreign trade, iscar and customs with a human touch and let us make a truk, a podcast of maga TVs and Mexico hello to all good afternoon are welcome. It' s an honor for me to be at today' s bartering exclusive event of telese maga without Mexico. I greet you like every Monday and Wednesday,
and without a doubt today we have long tablecloths. We have the presence of Dr Andrés Roade Ponce and it is an honor for me to have the opportunity to present him today, to listen to his talk and, if I may, Dr Andrés Rode I will read very briefly to his countenance before giving him the microphones, which he knows is his home and which are his own. Dr Andrés Rode Ponce is a graduate of the Faculty of Law of the
National Autonomous University of Mexico. He obtained the degrees of Specialization in Tax Law, Specialization in Economic and Corporate Law, Master of Public Administration and Master of
Tax and Administrative Law and Doctor of Law. He was a lawyer for the Federal Public Prosecutor' s Office, head of the Department of Compensated Exchange and deputy legal director of the Mexican Institute of Foreign Trade and Executive Secretary of the Commission for the Protection of Foreign Trade of Mexico during the exercise of the patent
of customs agent, from which he voluntarily withdrew. He was president of the Association of Aduanal Agents of the Airport of Mexico City Adam and president of the Commission of Honor and Justice of the Confederation of Associations and Aduanal Agents of the Mexican Republic. Karem was president of the SEASI Center for Customs Research and International
Trade and the Inter- American Institute of Borders and Customs. He is a university professor of the subject of Tax Law and Customs Law and an international lecturer, author of the Mexican Customs Law Books, customs tax reforms. During the Mexican Revolution, the birth of customs people as a key figure in the development of Mexico' s foreign trade, the establishment of the customs controller in Mexico and trade facilitation. President of the International Academy of Customs Law and clear partner
of the Prode and Ways firm. And so without further ado, we welcome you, Dr Andrés Rode. It' s nice to have you around and the microphones are your welcome. Thank you very much, Selvia. First of all, my thanks to c for inviting me to join the LC community, in which I am very proud. A cordial greeting to all who see and hear us and a very affectionate greeting to teacher Daniela Martínez and Dr Javier La
Torre. This time I' m going to talk about the structure and evolution of Mexico' s foreign trade and if it' s okay with you, I' m going to support myself in a presentation, especially in order to give more discipline to my presentation and to be able to take advantage of these
minutes that I have the pleasure of sharing with you. As you know and have announced, it is a question of putting forward the main elements with which Mexico' s foreign trade was structured and structured and how it progressed along the way, and here I propose you to make a very, very rapid and generic review of what will be the fundamentals, all the pillars on which, during three hundred years of viceroyalty, Mexico' s foreign trade was structured.
And maybe this is just a reminder of all of this that we' ve studied before in our careers. The first was the monopoly that established the Kingdom
of Castile and Leon and then Spain over trade with the Americas. Of course it was established that it could only be traded between three large ports that there were in the Spanish domains in what is today Mexico, Era Puerto Veracruz, the Port of Cartagena, these in the Atlantic and the Port of Callao, now very close to Lima, Peru, for trade and on the Spanish side.
Only trade with Seville was allowed and then it spread to Cadiz, for the reason that Cadiz is the door to the sea and Seville, as you know, is an inland port upstream of the Guadalquivir. This led to practically
non- existence and trade. They date that the monopoly what it caused was that there were a couple of ships that sailed, arrived to Veracruz a year a year and of course, the monopoly established by Spain was of the displeasure, of the discontent of the kings of France and England and the protection of the doctrine of the sea in Bear, that is, of the sea owned
by all the world. They considered that monopoly to be arbitrary and therefore established those of England, which is England, the United Kingdom and France established the corsairs and pirates. And this then made an effort for the Spanish galleons, when they came from the Kingdom of Spain, to leave the Americas, to be accompanied by the system of funes, that is, to a ship, to a commercial galleon was accompanied by various warships to face this pillar. This
pair of pillars were accompanied by another. That of prohibitions. The trade between Metropoli and the colonies was not only little and based on monopoly, but also a very intense prohibition was established between what could be exported and imported from Spain and the Americas. That was another very heavy lead so that the trade entering viceroyal was very scarce. I remind you that it still dates back to the early 18th century. Eighteenth century metal did not arrive more than two ships to
the port of Veracruz and the port of Seville. That size was so restricted. Another subject that conditioned is that the presence of the Spaniards in the Kingdom the Viceroyalty was clearly with a vocation, a vocation to mining, to precious metals. Notice the difference how the English arrive in the 18th century, in what is now North America, most of their cities are in the ports,
on the shores of the North Atlantic. The seven colonies developed stuck to the sea and, instead, in the Viceroyalty, the settlements went to the interior of the country. Why, because inside is mining. Then they settled in Mexico City, in Tasco, in what you hear Morelos, in San Luis
Potosí, in Guanajuato, why, because there were the mines. And then this caused not only that there was no foreign trade, but that the trade was markedly domestic and of products and products manufactured in the lands of the Viceroyalty, in New Spain, in the new Galicia. On all these issues,
and this generated the emergence of consulates. The consulates were clusters of chambers of commerce of the merchants and very soon there was a huge dislike of why this system favored the consulates of Seville and Cadiz and greatly harmed the consulates of Mexico of New Spain, especially because moreover, the consulates of merchants in New Spain were deprived of the eastern trade, of the trade that existed in the Philippines and with China, in such a way that, there were practically no large
shops, then the alcabalas arose that it was to eat the taxes that were collected in the transfer, at the crossing of the goods through the various departments of territories in which the new Spain was divided. That was, under that pillar developed. I know it' s a very generic, very broad approach. Each of these themes gives to talk a lot of time and abound in the details of this. The alcabalas then functioned as exonerations, when they crossed
goods and there were internal customs, so that it could not travel. The next step or period I would like to share is that what happened to independent Mexico one thousand eight hundred twenty- one in the nineteenth century. The national political system throughout the 19th century was absolutely a political chaos in the presidents lasted a few months, a few weeks, were sustained by arms, so that it could be a period of independent life in Mexico, characterized by political and
economic chaos. This protectionism was maintained in the time of the Viceroyal. It remained for almost the entire 19th century. The first liberal customs ordinance, i e, which reduced taxes and reduced bans, is considered to be Benito Juárez ' s one thousand eight hundred seventy- two tariff. It is considered that this may be the first liberal indication. But, above all, there was so much revolt, then there was a total absence of national customs control.
Remember, in one thousand eight hundred thirty- thirty- nine, thirty and I don' t remember the date right now. There is an attempt by Spain to recover the lost territories from the war of cakes. Then the invasion, the invasion in forty- seven, with the war lasting forty- fifty
- two, which costs the loss of half of the national territory. Coming out of that, we entered the liberal civil war against conservatives, in such a way that the forces in combat, because the first resort was customs control. It is famous as Benito Juárez establishes the government in Veracruz. From there he flees in step from the North that today has been Juárez, And going out into the civil war, comes the French invasion, the French invasion of
the sixty- one. Sixty- seven members of the Government of the Republic recovered with Benito Juárez, who later died during the Government of Juárez and Lerdo. There are three coups de Estado de Porfirio Díaz. Finally, in the last time the coup d'état triumphs in such a way that this convulsive century, because it provokes a state of widespread smuggling, because in addition the tariff remained highly restrictive. They are famous as general generals who were in turn
casques from some parts of northern Mexico. They established their own free trade area, some established their own tariff and the constitutional system did not allow much either. The Constitution of 1, 800 twenty- four states that the power to establish governors' customs is already established in the Constitution of fifty- seven that it is the power of the executive but that, however, the governors had
powers of supervision over the movement. Even though the Constitution of fifty- seven establishes the prohibition of cabals, the cabals still last after the Constitution of nine hundred and seventeen. In fact, the Constitution of one thousand eight hundred and fifty- seven establishes its elimination. The Constitution was being postponed from time to time to extend this term of pleasure, so that article one hundred and seventeen
of the Constitution still prohibits governors from establishing the channel. That is the state that keeps Mexico' s foreign trade and entering the 20th century and perhaps already past with the Government of the Revolution, with the government emanating from the Revolution of nine hundred and ten. We entered a period of protectionism aimed at replacing imports, that is, generating an industrial base, generating capitalism, generating an
economy of substitutions, creating services and their pillars. Up to a thousand nine hundred and eighty- six, I could basically enunciate them the way it' s on the screen. First, import and export required import permission and the entire tariff that at the time was about fifteen thousand trachelar positions was subject to import permission from the Trade Secretariat called so. At that time the average import
tax was between one hundred and one hundred and twenty percent. The recordable basis that we have today for certain, that is the customs value and that the value in Adam is the transaction value and that the transaction value is the actually off price to pay adjusted in terms that are available with incrementable or decrementable,
as they are called today. And at the end of all that, it did not operate that, but it operated official import prices, that is, the Trade Secretariat said what was the value to which the tariff was to be
applied, which in reality was an extremely fixed tariff going to it. And to make that cake, because there was, from the year nineteen hundred and eighty- two, the widespread control of changes that, in very simple terms, is that those who export have to hand over the currencies to the Bank of Mexico and those who import have to go to buy them from the Bank in Mexico and, obviously, the protection lies in differentiated rates of exchange.
While the export, the dollar or the currency can be bought by central ship to one for that same, one to import it, can sell it in one, five, one, twenty, so that the differential acts as a restriction and barriers were not clerical, they were not enforceable up to the point of entry, but were then enforceable, for example, the requirements of preferences of national suppliers in public purchases and the performance requirements that we call them as
requirements of national content. This scheme was in force from thirty- five forty, formally until the year eighty- six, and the answer itself worked. Yes, yes, much of the industrial sector and the Mexican industrial areas and
zones were generated by this scheme. However, in the middle of the 20th century of the eighty- sixth framework eighty- six, because it is the year in which Mexico subscribes to its accession to the International Treaty, not the so- called arraceles General Agreement on State Guarantees and Trade, which we all know by its acronym in English cran In that year we signed it and, therefore, it could be thought that there it begins what is now called the
neoliberal era, that is, the structure of Mexican free trade based on a liberal scheme begins with the subscription, as I say, of the gat Delga of one thousand nine hundred forty- seven, although a few years after eighty - six and as a result of the multilateral round of trade negotiations initiated in Rol in Uruguay, it led in the year of ninety- four to the establishment of the World Trade Organization. Therefore, the end of the period of
provincial application of the GAT COAREN and the entry into force of the GAT of nine hundred and ninety- four. There I say you mark the flag. Although Mexico had begun a few years earlier, at eighty- six years ago, there, from eighty- three eighty- four, Mexico had already begun unilateral liberalization, it had already begun to liberalize the textile and household goods market.
But finally, starting in the 1990s, Mexico began a period of negotiation of free trade agreements, first with Chile and then with the most emblematic of them all that it was free trade of North America, the telecal or as it is known in English, the NAFRA, very fast, we negotiated it, very fast. It entered into force and Mexico not only accompanies it in the multilateral aspect, but also integrates it into a regional bloc. Remember,
we' re going to see him. Right now that Mexico, the GAD contemplates the global multilateral system of foreign trade, but the same home allows the
creation of regional blocs through free trade zones or Sabunera unions. Therefore, Mexico, in these new platforms or new columns of its foreign trade, decides that a great column is the cat, the second great column where it will sit its entire structure, its foreign trade is the telecan and other free trade agreements it concludes with Central America, with Europe, with Costa Rica, with Panama and with a number of countries. The third column is the subscription of promotion
and protection treaties. There' s just some investment. Today we have learned that the way to increase trade is through enabling private, domestic and foreign investment, and that foreign investment, in a positive circle, generates more trade. Investment generates more trade, general trade, more investment. That' s the third column. And the fourth pillar is Mexico' s accession to the Organization for Economic Cooperation and Development, which, of course, was known as the
Paris Club, when they were only from fifteen countries. Some call him. I don' t know if it' s derogatory for the Rich Club. What is true is the organization that groups together the countries that represent the highest degree of economic development and those that want to achieve it. It therefore draws out many directives of a not only commercial, but also economic and tax nature.
And Mexico under that new pillar, starting perhaps more intensely from the last design of the twentieth century that allows it to inaugurate, start the twenty- first century with a new platform. The question and it says good. When he entered, he entered the gat because it was important, because the gat
had a beginning and had many obligations. The great objective, the great principle is free trade, to say that the laws of the economy govern them the market and then the won not only has principles, but has a uses in charge of the countries. The principle of trade liberalization has obligations on countries to prohibit the establishment of non- tariff measures. The Treaty calls them non- tariff measures. We, in Mexican legislation, group them under the term of
non- tariff restrictions or regulations. It provides for no prohibition, but for the progressive, negotiated and consolidated elimination of import taxes. One very important thing that is often overlooked is the freedom of transit set out in article five, since the interest of all those who are listening to us is that, as an obligation for the principle of liberalization, countries commit themselves in article seven to
apply the principles of gauging. Another principle is non- discrimination and obligations. One of the most important is known as the most- favoured- nation clause, which is so important that it is in article one of the gat that the preferential treatment given to it by one country by the products of another country is obliged to be granted to the same products from all the cat member countries. One author says that this most- favoured- nation clause amounts to a
global free- trade area. Equal national treatment, i e the most- favoured- nation clause, prevents discrimination against suppliers and equal national treatment prevents discrimination between imported and domestic products. Of course, they undertake to abolish the requirements for implementation, i e national content. The principle of reciprocity consists in the
obligation to negotiate through mutual advantages. The principle of fair trade implies not granting or not committing cesleal foreign trade practices which in the forty- seventh year had basically been thought to be export and mastery subsidies. And, of course, to the principle of dispute settlement, consistent that when the gat member countries have
a different one, they submit it to the POEMC dispute settlement bodies. This very generically is enunciated of what Mexico forced itself to fulfill in the cat and remember you two principles. One that the Constitution says that the international treaties signed by Mexico are supreme law assembly and second, that the Cordia has said the
treaties are above the laws and the Vienna Convention. The Treaty of Treaties says two things PATA is to be Vanda means treaties must be complied with and another very important provision says that national law cannot be an excuse for breaching an international treaty. This is the new scaffolding, the new structure with which Mexico begins
the twenty- first century of its international trade. This scheme of the forty - seven cat and I say forty- seven, although it came into force forty- eight and from the other world remembers that it is the first International Treaty after the end of the Second World War. And the question is it
worked and the answer did work. For the world. Take this graph that what gives is the volume of inter- world trade, but measured in volume, not in dollars, why, because the dollar might be needed indexed to dollars. What date this is volume. If you see a steady growth at some point, already to the right, the growth is exponential and rises of greater intensity. It has three falls and you see it around seventy- three
seventy- four a slight fall. You, who know world history well, will be able to associate it with some event in the year two thousand seven, two thousand eight two thousand nine has another fall in the year two thousand twenty has another fall. You will associate him immediately. What happens in the world in the two thousand eight nine, which caused trade to fall and what happens in the twenty, which caused it to fall again. But look there.
You can appreciate what analysts call the UV effect how trade falls, but very quickly it is composed. The idea of this film shows that these rules of the game did work. There are even times when trade grew more than production, but how it grew. And this film comes from fifty- three
divides. The first columns are exports, the last columns are imports. And I want to reflect on how the cake of world trade was distributed and I took two prototypic dates seventy- three and two thousand twenty- one that two thousand twenty- two is in similar this year. How much of that weight touched, of that cake, how much America took to the impo and to the espo and was approximately seventeen percent. Think about how 21 North America has
lost export markets. It is left alone with the 12th point seven Europe. In seventy- three he kept half of the cake fifty point nine to the spous and fifty- three point three to the in In twenty- one of fifty- nine he lost he went to thirty- six point nine and fifty - three to the empo. Lower thirty- six point four. Don' t go ahead, in trials, because if we just look at this sheet, we might think that Europe is losing world trade to these are blocs.
Asia had the splint song in seventy- three fourteen point nine, and today it nearly triples that number thirty- six, point three. At the impo he was fourteen nine and today he is thirty- three, point four. I was telling you I might be thinking that Europe is losing market. If we look at the next sheet, perhaps we will change our mind to say how much of Europe' s international or foreign trade is trade among them twenty
- seven, almost seventy percent. In other words, what Europe has been doing is changing suppliers from outside the European Union to suppliers within the European Union and look at how its intra- European trade has been growing to the same extent almost sixty percent of Asian trade is among them one thousand North America.
Surprisingly, it is the fact that it burns down why, because for twenty years we have had a trade a normative basis with the trade of the telecan Since two thousand two, any product comes from the United States subject to tax and yet the intra- American trade is only thirty percent. The President,
at the 10th TEMEC summit of leaders, invited the President. He called him with called import substitution, which is not accurate, because replacing imports is replacing a foreign supplier with a national, which he means, is replacing suppliers within and increasing trade within North America. I believe that the data is representative and I think it well justifies the measure. How our trade grew. I asked them about the trade balances. What you' re going to see from now
on. I' m not saying. Nejil says so, says the World Bank. That' s what the SAD management report says. Well the eighty - five, which was the last year outside the GAD our foreign trade, time if espos were just thirty- five thousand thirty- six billion dollars. Last year, Mexico’ s foreign trade was one trillion$ 180 billion and two billion dollars. The billion not the billion gringo, but the billion Mexican, that is, a million million. What can you see from that foil?
First, you can see the volume, volume and or and logistical problems. Say yes. If customs crossed one million one hundred and eighty- two billion dollars and each container costs on average the goods it brings inside the container, we might think it is worth twenty thousand fifteen thousand dollars, how many containers had to cross the Mexican borders and savannahs. Second fact you can see there is that seventy percent of Mexican exports were oily. Think about it.
Today, barely five percent of Mexican exports are oil. Another important fact that you can see there that of the six hundred and four billion imports, five hundred and five hundred and twenty forty- five billion are of imports of industrialists, you come and their intermediate, For below comes the breakdown of goods and their intermediate, And you come of capital are five hundred and ten five hundred
twenty billion dollars of industrial imports. If you add up the import of goods and their intermediate, that is, inputs for industry and you come from capital, it will give you that there are five hundred thirty billion, that is, the Mexican industrial sector is self- sustaining. It generates five hundred thirty billion dollars of impo, but generates five hundred thirty- eight billion expo,
that is, it generates a superabit more than eight billion. If we even compare with agricultural goods and the industry derived from livestock, etc, and mining fishing, they will also realize that the primary sector is also contributing with super skillful and trade balance. From where comes the deficit of twenty- six thousand four hundred and twenty- two million, that is, our cheese of a surplus, industrial and agricultural and fishing balance becomes a liability, a deficit.
And the question is fifteen ate the deficit. I' m going to give you a hint and reserve you for the questions to say see where it says consumer goods. Last year, consumption came to eighty thousand four hundred and thirteen million. You, who are at home in your office, put the trade balance of Mexico in two thousand twenty- one and you will tell them that a year earlier, the import of consumer goods was fifty- five thousand, that is, consumer goods from one year to the next increased by more than
twenty- five billion dollars. Yes, who bought so much, what we ' re buying that the balance of consumer goods grew twenty- seven billion dollars from year to year. If you see the trade balance that Ineji published a few days ago in January September, it seems that consumer goods can close this year by$ 90 billion. I mean, who' s importing that scheme. More importantly, Mexico went from an oil or agricultural economy to an industrial
economy. That' s what this reflects. Mexico is today an industrial economy, but this is the half- full and half- empty glass. What is the ratio of gross domestic product to Mexican foreign trade and for a few years, about 80 per cent of gross domestic product is generated by foreign trade.
Many of you may see a glass half full, but others may see a glass half empty to say what happens if Mexican foreign trade is subject to some incidence, some damage, a global shock, another accident, another industrial accident, another major physical catastrophe, geopo, geologic geoló. There are the great upheavals of which the WTO is another pandemic. If you look at the national production of PIFs, what measures is what the country produces in a year.
Eighty percent is foreign trade. It gives them a contrast data only to provoke the. The Brazil Brazil dialogue, the relation of its gross domestic product to foreign trade does not arrive. It' s barely thirty percent. Look how bad Brazil is. No. Brazil has a pif of fifty percent more than Mexico. This one. Here' s a tip. I, in positive terms, would ask myself Andrés hear what you see in Mexico not neglecting its foreign trade. Of course, but it requires an industrial policy that promotes
the internal market. Mexico must have an industrial policy that promotes the domestic market and not just the market. We are clear about the area of the country that should be promoted, which is from Mexico City to the south, south - east of Mexico, where there is work before workers, water, natural resources, connections, etc. That is the virtue of the three or four
major anchor projects of this administration. The francismic train, the two- mouth refinery, the Mayan train and all that is aimed at generating anchor projects that can generate, as well as how tesla worked in the north of this side, may be following what duana we have to know what customs we need. Well, there may be several methods of evaluation. I can evaluate by collection, I can value by fallicilitation, I can evaluate by your ability to combat
sleal practices. I had it there and I took it off because if I don' t run out of time and I say well, let' s evaluate the first raise. That is the behavior in the left column millions of dollars, in the right column, is millions of pesos the red line is collection. The blue line is imports, not just a quick look. It shows us that the collection volume is marked by the import volume, perhaps with some variables. For example, the pandemic broke global supply chains, broke Joseph
Justin Time to return to Justin Kase. One of the great challenges and demands that the Mexican economy has right now are wineries. This made that what is imported must be imported over the next three years. It mattered in the next three months. Freight supply chains were broken, freight increased to significant levels. Freight, as you know, is part of the recordable base and a number of elements that could contribute. But there it shows me that the result of
the excellent collection that the Mexican woman had is due to two things. One is the substantial increase in imports, which of course operates very favourably, and the other is the ninety- four percent of the revenue you see. There it is, say, the reports of the tax management system mark that today the import tax does not represent even five percent of what customs charge. To say, we have customs that are collecting VAT, YEBS and san if I
evaluate it for trade facilitation is enough. That' s not what I' m saying. I' m the salt management report, and I' m not saying that either. I' m the World Bank report. You target the World Bank' s performance index and it' s going to give you the performance indexes of customs around the world. I chose three from Mexico, Canada and the United States. Zero' s all the way down, it means they' re going really bad and five' s all the way up
means they' re going really well. That' s the rang where Canadian customs move, the rang where Mexican customs move, and the rank where Mexican customs move. If you can see the, our partners, our partners' saunas move in the range of three, five, four and we' re on the rand of two, five and we' re going down. If you see from the middle of the last six years, the trend, the
World Bank evaluation tends to reduce ratings. The ratings And that' s more, I don' t know the reason for analysis, because they are the years when most money has been spent on devices and non- intrusive equipment on software devices, where it is said that it takes eight seconds to cross customs. This is the performance index, the potential to integrate further integration, and
to achieve greater economic integration. I think they' re very favorable. I think that the President, the Obsobrator, is right for a number of reasons. First, because the gap of asymmetries of the US economy with the Mexican economy has narrowed and is marked by the volume of trade it has in Mexico. Mexico' s volume of U S trade is impressive. We always rank between one and two with China and other countries, so that is representative.
And the other, that the make- up industry ceased to be a maquiladora, where it was said that what Mexico exported rarely passed from four three percent of national content. Today, studies by more recognized government analysts outside the government indicate that the national content of Mexican exports is thirty- five. Upstairs there is a very important fact, which is the ner Shorin. The reserves that
Mexico has in lithium and other strategic raw materials. The tesla effect in such a way that all of this suggests that Mexico' s trade of one billion one hundred and eighty- two billion can make it in two a couple of years, Mexico is in a billion and a half. In a billion and a half, and that will generate great demands for normative renewal of processes,
but also for the provision of highly prepared human resources. This I want to surprise you again my books that always egemptilize the people of my office, Luis, my assistant, puts to remind you that knowledge does not enter by blutut, but you have to read. There' s my data for everyone who wants to write me in all sorts of context. I hope, Lvia, it did not take long and, of course, I remain for the consideration
of all of you, for your attention is very much English. Man, on the contrary, my dear Andrés, a very interesting talk where you are giving us some very important data for Mexico and what our trade is. Here ' s a question, or there' s one if he was the biggest builder contributor to the fundraiser. This means that the government is interested in continuing
to cancel certification and VATEPS to obtain a greater cash flow. This can be linked to the publication of today' s decree, where the ballet certification period is reduced from three years to one year. I wanted to see Enrique, thank you very much for your concept, that we will put a very general concept. The IMA is a very important consumption tax, it is a consumption tax. Therefore, the step that breaks you through companies must be completely harmless
and must be completely easy, flexible and economical. What the derner companies have accumulating value, but that process cannot be stuck. It is therefore important that
we have that first base. The tax is a consumer tax. Therefore, the passage through the companies must be practically free of charge, because then, if it is not distorted, the point two is that the tax, VAT, import, VAT the import unless it has been final consumer is an IBA that is credited in the monthly declaration, that is an advance the importer, in the expedition pays the VAT, but in the next monthly declaration it proves
it, it credits it. The third principle is that, generally the exporter and we already saw one thing, that 80 percent of the gross domestic product is foreign trade, which means that 80 percent of the liba to import is asked for return, is not credited, according to the rule of three. If the echo, if 80 percent of the Mexican economy is foreign trade, means 80 percent is exported. See the sheet above we imported$ 500 billion, $ 600 billion, but we exported the same figure. It means either
the importer certifies it in the monthly declaration or asks for the refund. Therefore, the only going cost is that of the consumer. Consumer, final consumer. That' s the subject of the sat. Some people misbehave, some people misbehave. Yes, we had to fight, but it was done the worst way. The Mexican export sector was overtaken by one out of three. Or you get a certification and it costs you a lot of money to get
that certification, but it also cost the government. He had to create administrations within Agase to administer that certification. Second, or are you bailing out an eye we' re competing for the dollar penny? Is he in the world, are we competing for the penny of Lord Dollar? And you gave the exporter the oblia to fight the bad guys. Get him a certification that costs ten thousand dollars a year on the waiters or a bail and the government had
to create and hire staff to manage that. And the third is that you pay for it, that you pay for it, and then the exporter, who has no financing, takes away the money and gives it salsa, and then he has to ask. The question is from the data where it says that importation into consumption is increasing bestially. The question is whether those are actually unlustrial imports that they prefer to pay. To say why I do the temporary, if I am going to pay VAT, better, I make it definitive.
I pay the final, I do the export and I ask for the drug c, but if it' s always I' m putting the exporter in a cost chain that Lima shouldn' t have. There' s a very good document. I recommend it on the VAT that published the USB. I highly recommend them. It was published by the SD And are the principles of the Libano and is based on that for the chains of the companies should not have those costs and we put into the chain of LIVA the cost of
certification, the cost of the bond or the cost of paying it. But, moreover, not only that, but to renew it and pay a fee, that is, we require a clear policy. I hope I have answered that question and I' m sorry if that yes, yes, you do not put us at a very clear point with regard to Diva, that the livo pagans are us, the final consumers, and so they are making it
difficult for exporters to recover. So to be why, because he was going what is actually a tax with equivalent effect, that is, remember that he was going to have the great principle. I remind you again of this CD document The great IBA prince is taxation, destiny. Therefore, exporters in the world did not cause go. Now. The way to make the burden of the national product' s ira equivalent is for the imported product to pay for
it to put them on an equal footing. See how that exception is provided for in Article 2 of the MAT, say, in my going the United States complains about that. Why you complain because the United States has no VAT and then your exporter is not entitled to what you paid for sales tax income tax that they paid in the various States of the American Union. Our exporter in the world. The exporter asks for the refund of all the taxes it
paid that it paid and draws balances in favor of the United States. Not native has to go. Then this your exporter absorbs the cost of state taxes on sales. The tax that opposes in the US sound that is going to be bought anything the FAX that they call sales tax, but it is not value added effect. It' s like you got our old business income tax. It was cumulative, like the Nativa, cumulative until France invented it in the' 70s and we put it in the' 80s. It used to
be very productive. Yes, yes, yes, very, very, very well, there are others. Well, here' s a colleague, Miguel Carlos Ramírez, who does something to us from the story, also from how customs were handled, how all the statements are handled, what was done. It also gives us some points, some concepts. When the customs code was used, the tariff is not the harmonised theme, it was alphanumeric codes,
our rates. Now, speaking of the Cushi or speaking of the Customs Cooperation Council, since the Berlin Wall also tells us no carballido salutes and then also tells us that the evaluation of the strongest vanes, good corruption and drug trafficking. Right now. We therefore have to make a very strong assessment with the customs authorities. I believe that these very strong changes that we have had over the years have come to pervade us a lot and to stick a lot with
all those controls. Yeah, yeah, I think the drug dealer who' s come to corrupt us a lot. It is very dangerous all this, since congratulations, congratulations, excellent talk. Dear Dr Rode says, I think we' ve had other exports, so to speak, the brain drain. You can also make a platform to consult, I don' t know, says Francisco Javier Hernández, and so the customs facilitation, because we will see all this. A lot of bids. Andrés Hector, I don' t
know if you want to comment on some things. First of all, congratulate Dr Andres roy on two things. From the first for this excellent presentation, no waste. Thank you very much for the information, very timely and very pertinent, and congratulate you on the recent Congress of the International Academy of Customs Law in Germany and where Enrique was present. So many congratulations to donate those andres events. Something you shared with me. Sorry you shared us and I
find it very interesting to make a comment. It is when he makes the comment related to the time when the entry of goods to our country was restricted. We are talking about the age of protectionism and import substitution. One of the ways to do this was through very high tariffs and you link it there with a comment on a practice that was given and was smuggling. I have
an import permit. I have a very high arancon for what I' m going that way, I' d better go smuggling and I think this is important to take into consideration, precisely because a question was asked regarding the reduction of the deadline of authorizations for certified companies, which is dictated the rule so
that authorization, now it is granted with validity of one year. It may be double to a, but it will only be in effect for one year and that obviously has an impact on the costs that companies have to maintain certification.
But apart from that, there are another set of requirements that have been imposed on the subject of hydrocarbons, which now you need to have an authorization, give a warning, give information of what volume is it, what you will import it and what you will import it for and what your consumption is,
since you are. In the end and in addition, it is in the specific case of sugar, where there was a very significant increase in tariff matters, then we see forgiveness and in the case of steel materials, which there was also an increase in tariffs. So, reflecting on that position that is currently being followed, that tariff increases and a little more restrictions, we are not causing us to go back to the old scheme of what better I
go through the gap that is even better paved than the fiscal route. Yes, thank you very much, dear Hector you were missed in Berlin, thanks to the referents of the academy and the people who really study, analyze and see in depth the Mexican reality, let us hope that the year that enters the United Cinemas, in Bangkok, we will have you and share your knowledge with us. I think we have to look at it from various points of
view. Well, while globalization led to global value chains, value supply chains, it caused the fall of border barriers and, of course, caused and resulted in an increase in volume, as we saw in the sheet, that world trade, which grew so exponentially, grew in almost every country in the world, be it to Guatemala and India and so on, and bring the
levels as big as this. But it caused something else. It provoked this boom was accompanied by terrorist attacks, by attacks by Atocha, Buenos Aires, London, and that is to say, new York, that is, terrorism was mounted in the commercial chains and there was also an emergence that did not exist, the international crime. The international crime arose and then we began to see how there were international work that did not exist, for example, that
of dual- use goods. How through a commodity that has the most naïve purposes because it serves to be ham and sausages, it also serves to be explosives or that small ingredient or device that serves for laptop also serves to activate bombs at a distance. And this rarely some phenomenon of both us and people from like countries is explained by a single factor, that is, the trade grew, it relocated, the fact ended in the fact it, because it
only rules in Mexico for the chivas and the tequila hunger. The rest is the product of globalization. Then, but also, came the terrorist acts, came the dual- use deals. Seeing terrorism, organized crime came. They got into this and then the governments had the need not to sacrifice trade, but neither did national security. There are two articles. Lately, all the measures that governments are putting in place are based on the cat' s article
twenty- one to say remember that gara establishes obligations and exceptions. And the twenty- one of the cat says you can disappoint everything for reasons of national security and notice how the measures now in Europe, that we were going there, because there is also another new discipline environment, environment, And then come the carbon taxes, where you will pay hector, import taxes with carbon certificates. And there' s another topic, because there' s also the fish
and there' s the fountains and it' s right now. We are suffering from the problem of environmental change. How a typhoon changes from two to five eight hours in four hours. And there comes another issue as important as that, such as gender, gender equity and all these new disciplines that we didn' t have the strength of countries, but let' s not be naive either. The industrialists are still looking for ways to establish protective measures and
we have treaties. Everyone has treaties where they forbid taxing and putting up barriers and then we start playing very complicated games. Today who is dedicated to customs and commerce plays a very complicated game. At the same time, you have to export, but you have to circumvent like these stepy chase races these obstacle races. And the trader doesn' t think the trader dislikes these obstacle races the more obstacles his product jumps. It has greater value, of course,
it has greater value. And then the view said here, Don Carlos Ramírez, say, you criticized for socimite. I showed him a sheet where customs performance is flunked in Mexico. World Bank retests the performance of onero in Mexico and tells you it leads to the fall of a piano. Saying hears now perhaps the question is to say, hey, Andrew and why not evaluate so badly World Bank, among other reasons why you said, Hector, say hey
I want to export. I' m putting certification requirements on you to libar and I' m putting standards requirements on you, specialized customs requirements. Resis. In the sports card we enter, we do not enter, we leave, we do not leave the cf DEIS said to see me, the system. We have, by the way, that we live global chains of balch Ok and we have the truth that when one commodity enters under emex in one company in the country, it moves to another, to another because we are
not importing input, we are importing processes. Mexico is not port, Insumos exports processes, but we carry the worst education system. Every time a process goes to another process, another process, we have to do and pediments of five or one. I don' t know what they' re called transfer, and then we' re recharging because a product went from this company to this company and they pass five companies all from one group. Remember one thing.
World trade is monopolized trade. Eighty- five percent of world trade is intra- company trade without companies. So, when you pass this merchandise to this maquiladora and this one, and this one and this one, they' re all part of the business group and we put them to do pediments b
one after another. I think the latest statistic is that the virtual pediments were fifty percent of the experiments to say and this of course, because that' s what it marks, because the five go as it already misqualifies, the duanero system. Saying hears, but I' m also going to be critical so that don Carlos doesn' t give him satisfaction to educate them to tell them what we' re spending money on, on appliances, on x- rays on veins, we have to tell ourselves what we have to spend on
customs personnel. Every time he leaves. Every time a Mexican customs officer is seen, whoever' s in the office, whoever' s upstairs, leaves, a library burns. Every time you let a Mexican customs officer go, a library burns because we all know there' s no product, no history. Man. Mexico is one of the few countries that doesn' t have a national training school You remember, Hector, you were in all those efforts.
In the nineties, you don' t remember the attempts of the University of Wood and the Institute of Foreign Trade that you worked, that changed. I wanted to, but if I was to be andres, that project got frustrated. On the 11th of September of the two thousand one, the thousand changed, they changed our priorities in a very important way. Right now, there are two research priorities. They' re dogs and they' re machines. They' re dogs and they' re machines. Say, and the
Bank result I don' t say. I stress, I stress, but from the middle of the six- year period, for here, the World Bank evaluation is bad. It' s ma and if you take him, you add that the Governor of Texas closes the borders, but closes it because they cross the trailers loaded with migrants. I target them with shopping and industrial
policy in Mexico is well focused. It' s southeastern Mexico. But the south- east of Mexico has a problem, migration and the great migration in the terms in which it is happening today I saw the news that a cardena of twenty- five thousand people had gone and passed through a small town of Chiapas, Oaxaca and it will reach the border, There, to Juarez, to Tijuana, to Nogales, And they are human beings that need attention, but that also cause problems to other human beings. And in Mexico we have
no border. We have to say Customs in the south. I mean, this whole game now has worked for us in the ros parts. Yeah, yeah, I think it' s worked out for us how much people who have jobs have for foreign trade. The kids who are studying foreign trade and have trained him there is the generation of employment. But there' s another fact, too. You have to generate as an internal market. Internal market. Mexico needs domestic market, It needs a demand for domestic production for the
domestic market. Tragedies such as Acapulco can be engines to generate internal merchandise. That is, there are whole areas of Mexico that do not have a single industrial plant. To Guerrero, Oaxaca, Chiapas Yucatán. No. No. And no. And if there' s no industry, there' s no value. They add right. True Andres really is a subject of much reflection. This isn' t much to do. There' s a lot of
tare to be. Two andrés hearsay taking advantage of your reflection. Notice that there is something that I, when I have the opportunity, notice and it is the subject of valuation, so you pointed out that somehow it explains why
of the increase in diva. You are absolutely right, but I say that it is a matter of concern for companies in a compliance strip, because you rightly observe that international trade transactions seventy- five percent are made related companies and then enter, as set out in the legislation and the Value Convention, is not acceptable, the recordable basis to declare, certain conditions have to be met
and then companies should be concerned, because that issue is very serious. Or what I forgive enriches nothing more to take advantage of Andrew' s comment. The Texas issue has just been published as you rightly comment on the September trade and the September export fell. And one explanation is because of the obstacle Mexican exporters have in Texas six point five percent export growth. It' s brutal the figures that you drive four forty- fifty billion a month you apply to
it six percent and it' s a world of money. Yeah, yeah, yeah. Lose more one thing, the state import tax. If you stay in the state, if it' s state taxation, if you enter, if you don' t enter by tile, you' re going to divert Arizona, New Mexico, Florida and then the state government of Texas is left with no revenue. It' s a bullet in the leg. That doesn' t shoot Look at the interconnecting already in our economies. This one and of course, the subject of the go has. He' s got
to be neutral. Abso for companies. It must be neutral, because finally they can tell you to see the big bucks collected in customs eighty- seven ninety percent went and how much you returned him. It' s a point. That' s a very important point, not that many people don' t know. If people think they collect a billion of them all went away and you already have it here to but don' t negotiate it' s that' s very important. Claro sees the annual management report of the SA
the amounts it returns from ivan iva. It' s a lot of money in the Grieban and the play is that if you don' t give me back fast, then there' s public funding. For the companies. When companies, as we know, have credit problems in Mexico and the other, I provoked them and they didn' t fall to say why it' s falling, why it' s importing so much consumer goods of itself, why we' re not producing the good of this consumption. Two thousand twenty-
one were fifty- five billion and twenty- two were eighty billion. I mean, we buy more consumption in a single year, twenty- five thousand. The amount of the trade deficit matches, coincides and says good and went in there. I can think of Chinese cars. But good may be among others, but another one you' re right. One is that, but what would be the cause? And notice that what is sold as a good thing can be a bad thing the exchange rate of the peso with the dollar.
Oh, sure, of course, you' re absolutely right. It ' s cheaper to buy abroad than to buy here. I' m right. If the jacker no longer has an incentive. The exporter every time he is exporting or receiving less weights, of course, then say well what colloquially they say hears which parent the weight costs buy more, who is super weight. Superweight is incentivizing import purchase and on the other hand may be affecting this sale is because that is export. Of course, he' s not affecting
you because our export trade is usually not foreign exchange trade. That is, if seventy- five eighty percent is intra- company trade, it means that it is accounting trade there is no foreign exchange handling and then the other factor comes in, transfer prices. And then you say I' m andres why the SAR doesn' t handle the same rules for the import tax base, for the base records the income tax deductibles. For one reason, you dropped
the import tax to zero and left the same rate. But on the rent, that is, if I raise the bar, if I hold in New in Holland or Germany, I raise the value to the Mexican imports of my subsidiary in Mexico did not pay taxes. And then, why are they called transfer prices, because they transfer useful in the form of prices? And then the famous transfer prices? So, the tax area of all countries. That ' s not proper. Mexico is all over the world and then they say
there won' t be a stop. And then a Korean who sells you comes in and says you' re not undervaluing, not my king, the consolidated or concentrated market is overvaluing. So the one who overvalues makes it appear that the Chinese, the Korean who is importing at real value, seems to be selling to musician say he hears why this sells, why the Chinese car handle is sold in a dollar. If you were lazy in selling to ten, look. What is extremely complicated today is to analyze and operate Mexico'
s foreign trade. And what do I say about the tariff classification, where Henry is king, where Henry is what the Marquis of Kyoto is. Thank you, no, no, well, congratulations, many congratulations. It was a very productive talk, very illustrating and you leave us a topic to reflect on, enough to reflect and think a little bit more. I think there ' s a lot to study and there' s a lot to learn. And all the people who are involved in domestic trade and foreign trade have to
learn a lot. There' s still a lot to learn, there' s a lot to be trained in all this. My dear Henry, in the' 80s and' 90s we did not know of rules of origin. The first rules of origin were ninety- four. Yeah, yeah, yeah, yeah, when we had antin and preference. If we didn' t have the slightest idea what rules were, yeah, don' t start, we' re gonna kill with our feet. This looks who comes in and says I' m in wise is the one who knows the least. Then
I think I' m going through it. I get up to the top of the line and I' m the one who knows the least. Don ' t believe it. You' ve taught us a lot, and we ' ve learned a lot of timbre. We appreciate you very much and thank you for this talk. Thank you, congratulations for all people, excellent master, thank you for all bartering you, thank you for everything. Thank you very much. Well, Isai, we have a recon here for Andres.
Give the present. Let' s do a barter and FTA associated with you, the magazine gives the recognition to Dr Andrés Robo de Ponce for bartering in politics, in virtual conversation with the theme of structure and evolution of international trade. Today, 30 October of the two thousand twenty- three signs our seo Doctor Tavio de la Torre and our teacher Director General, Daniela Martínez. We ' ve reached the end of today' s barter. Thank you so much
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