A scoping study is currently underway into a Mexico/Australia Free Trade Agreement. Currently there is no public date for the completion of the study.
Australia has indicated that agricultural exports are again going to be a big priority if negotiations on an FTA proceed. Former World Bank chief economist Joseph Stigltiz has highlighted that the agricultural sector in Mexico is in crisis, the impact of flooding Mexican markets with subsidised products from the US has put many farmers out of work and into poverty. Under the current FTA frameworks that Australia uses for negotiations it is feared these problems would only be exacerbated.
The export processing zones that operate near the US border fail to uphold basic standards under the International Labour Organisation and United Nations. Australia is looking to access these zones under an potential FTA and seek to use them as a access point for production and entry into the US market. Any Australian investment in these zones would continue the poor conditions and wages that workers experience.
More Information
For a more detailed explaination of AFTINET's concerns see our two submissions:
Submission to the Feasibility Study of an Mexico/Australia FTA
Submission to the Joint Standing Committee on Foreign Affairs, Defence and Trade
