México and the TPP: a critical view on diversification and intellectual property

Abstract

The Trans Pacific Partnership Agreement was signed on February 4, 2016. The published text confirmed some fears but also brought relief as the details of what had been negotiated became publicly known. This paper attempts to contribute to the discussion with a critical view of the Agreement, although not necessarily in equivalence to US President-elect Donald Trump negative stand, but one of a developing country. The main argument holds that joining the TPP, or any other agreement alike, is not advisable unless Mexican industries are in a condition to compete. The line of reasoning is double-faceted: First, gains from the alleged diversification are insignificant, so handing over policy autonomy for development in exchange for access to negligible markets is not beneficial; second, its strong intellectual property rules would further hinder the policy space of the government for designing and implementing domestic science, technology and innovation programs. This would place Mexico at a disadvantage with regard to its prospects for a higher position in global production and value chains, not to mention develop full production chains led by national firms. As it is presently formulated, the Trans Pacific Partnership Agreement would consolidate a structure of dependence and income inequality, two problems which Mexico is striving to overcome.