Chapter 17: Economic Partnership Agreement between Mexico and Japan and Its Impact on Foreign Direct Investment – A Strategic Analysis

For decades Mexico has had a good relationship with Japan. The leaders of both countries have struggled to maintain a relationship of friendly cooperation to benefit the development of both countries. Mexico, being a source of coarse natural resources, has always been in the crosshairs of industries of several countries and in recent years has improved its trade relationship with Japan to complement the lack of resources of the Asian country. In 2005 entered into force the Economic Partnership Agreement between Mexico and Japan, a marketing agreement between the two countries that would promote cooperation and boost their economy. The aim of this chapter is to determine the impact of Japanese FDI in manufacturing in Mexico in terms of technological spills that occur in the sector. In addition, to establish whether there are flaws that do not allow technological spillovers generated, if any, are older.