Mexico, 3 Central American Countries in Pact

Mexico reached a free-trade agreement with Guatemala, El Salvador and Honduras, ending eight years of negotiations. The pact calls for trade barriers to be dismantled over 11 years for industrial products and 12 years for agricultural products. It would take effect Jan. 1 if it is ratified by the Mexican Senate and the legislatures of the three Central American countries. Officials of the four countries reached the agreement after settling differences over Mexican exports of beer and steel. Mexican Trade Secretary Herminio Blanco Mendoza said the agreement covers industrial goods, services, investment protection, intellectual property and conflict resolution. Trade between Mexico and the three Central American countries totaled $1.05 billion last year, only 0.4% of Mexico’s total trade. Mexico’s drive to expand trade relations is partly an effort to wean itself from dependence on the U.S., which accounted for 83% of Mexican trade last year.