Trade Protectionism Footwear Import Tariff Is High In Mexico

With lots of free trade agreements and borders with the United States, Mexico seems to be one of the most open countries in foreign trade.

In 2014, the average import tariff in Mexico was 5.7%, compared with 11.5% in 2008.

However, in recent years, Mexico's foreign trade has begun to trade non-tariff barriers and technical imports.

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A recent example is in the second half of last year.

Protection measures for products such as textiles and garments require importers to register on the register of the industry and pay special guarantee fees, which amount to the total amount of imports, and also increase the operating time by 30%. This makes it more difficult for small and medium-sized enterprises to import.

Even without these special measures, the import tariffs on footwear products are also high, averaging 25%. As in China, Indonesia is 15%, and Vietnam, the largest competitor in Mexico, is 30%.

WTO pointed out that from May to November last year,

10 measures were implemented for trade, including iron ore import licensing.

The National Association of importers and exporters of Mexico believes that the implementation of these measures has reduced the number of import and export trade enterprises, reduced competition, made it difficult for SMEs to maintain, and will affect employment. The implementation of protectionist measures can only enable a small number of enterprises to operate. In addition, these measures still have the danger of pferring expenses to the end consumers.

According to the world bank survey, Mexico is a country with high import cost. The average cost of importing a container is 1887 US dollars, and it takes 11.2 days to complete the import procedure on average. In Malaysia, Israel, Vietnam and Hongkong, the time needed to import is basically the same, but the cost is only 600 dollars.

The cost of China and the United States is 800 US dollars and 1289 US dollars respectively.

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Although the total population stood at 8% of the global population, the six retail economies in the region combined less than 1% of the total retail sales worldwide.

This is in sharp contrast to China and Japan. We should know that Japan and China occupy 10% and 15% of the total electricity market respectively.

The underdeveloped network service system is a major obstacle to the development of electricity providers in the ASEAN region.

In some areas, private investment in high speed networks is often considered a high-risk investment.

Furthermore, in Indonesia, for example, the distribution service system needs to connect eighteen thousand islands, which is a very big challenge for the construction of logistics infrastructure, and this geographical distribution makes the gap between the countryside and the city polarization more polarized.

In terms of logistics, such as pport infrastructure, due to the lack of effective road network, coupled with the unstable tariff rates imposed by various customs on different product categories, this also poses great challenges to the development of electricity providers in the ASEAN region.

The delivery process needed to execute online orders must be smooth and reliable so that consumers can have confidence in online shopping.

Forester Institute senior analyst Tai Ao believes that if local businesses want to further explore the market, it is best to cooperate with local postal companies to reduce the cost of logistics distribution.

For example, Lazada has established partnerships with more than 60 local express companies and pport companies, and has set up 8 warehouses in the region as its terminal distribution team.

In addition, at the end of this year, the ASEAN economic community will officially run, and the trade efficiency of the region will be enhanced. The links between the countries in the ASEAN region will be more closely linked, which will also play a positive role in promoting the development of e-commerce in the ASEAN region.