On June 26, 2017, the Secretary of Public Function – Sub-secretary of Administrative Responsibilities and Public Contracts published in the Diario Oficial de la Federación (the Official Federal Gazette)  a circular [Oficio №. UNCP/309/TU/370/2017] with tables showing in national currency the thresholds under the various free trade agreements of which Mexico is a party that apply from July 1, 2017 through December 31, 2017, when foreign goods and services are to be offered to the Government.

LOCATION OF DEPENDENCIES AND ENTITIES SUBJECT TO THE COVERAGE OF THE CHAPTERS OR SHARES OF PURCHASES OF THE PUBLIC SECTOR OF THE FREE TRADE TREATIES
Annexes Chapter Number
or Title
Name of the Treaty
Annexes 1 and 1001. 1001.1a- 1a- 2 to Article 1001 Chapter X North American Free Trade Agreement. (NAFTA)
Sections 1 and 2 of Part A of Annex I to Article 6-01 Chapter VI Free Trade Agreement between the United Mexican States and the State of Israel. (Mexico – Israel FTA)
Sections 1 and 2, from Part A of Annex XII to Article 56 Chapter V Free Trade Agreement between the United Mexican States and the States of the European Free Trade Association. (FTA Mexico EFTA)
Sections 1 and 2 of Part A of Annex VI to Article 25 of Decision No. 2/2000 of the EC-Mexico Joint Council Title III Agreement on Economic Partnership, Political Coordination and Cooperation between the United Mexican States and the European Community and its Member States, and specifically Decision 2/2000 of the EC-Mexico Joint Council. (TLCUE)
Sections 1 and 2 of Part B of Annex 11 to Article 119 Chapter 11 Agreement for the Strengthening of the Economic Partnership between the United Mexican States and Japan (Mexico- Japan FTA )
Annex 15 bis-01, Section B- Mexico List Chapter 15 bis Free Trade Agreement between the United Mexican States and the Republic of Chile (FTA Mexico Chile)
Annex 8.2, Section H, called Thresholds, last paragraph Chapter 8 Additional Protocol to the Pacific Alliance Framework Agreement. (Pacific Alliance)

Taking into consideration that, Circular Letter UNCP / 309 / TU / 726/2015 dated 23 December 2015, was published in the Official Federal Gazette , through which, based on the information provided by the Secretariat The updated values ​​of the thresholds established in those chapters for their scope of application from 1 January 2016 to 31 December 2017, the conversion into national currency of the reference Second half of 2017, in accordance with the following:

  1. The articles indicated in the above table stipulate that its scope, among other elements to be considered, will be determined by the estimated value of the contract in relation to the thresholds expressed in US dollars.
  2. In accordance with paragraph 1, subsection (c) of NAFTA Chapter X, Annex 1001.1c, the eleventh inflation adjustment to the thresholds took effect for the biennial period from January 1, 2016 through December 31, December 2017, in accordance with the amounts established in Circular Letter No. UNCP / 309 / TU / 726/2015.
  3. In accordance with NAFTA Chapter X, paragraph 4, Annex 1001.1c, the conversion of thresholds into national currency shall be made for half-yearly periods of 1 December and 1 June of each year or the first subsequent business day, Using for that purpose the value of the Mexican peso in relation to the United States dollar.

In accordance with the provisions of the preceding paragraph, for the second half of 2017, the exchange rate for the conversion of thresholds for the public sector procurement chapter of these treaties shall be that determined by the Bank of Mexico on June 1, 2017, it published in the Official Journal of the Federation on 02 of the same month and year, this one of $ 18.5941 MN being (Eighteen pesos with five thousand nine hundred forty-one ten thousandths of national currency) for a US dollar.

  1. Also, in accordance with Annex V, to Chapter VI; Annex XVI, to Chapter V; Annex X of Title III; Annex 15, to Chapter 11; Annex 15 bis-05, to Chapter 15 bis and, Annex 8.2 Section H, to chapter 8 of the Mexico-Israel FTA; Mexico-EFTA FTA; TLCUE; Mexico-Japan FTA; Mexico-Chile FTA and Alianza del Pacífico, respectively, establishes that, in order to grant equivalence to the present value of the thresholds applied in the context of NAFTA, the updated value of NAFTA thresholds will be applied.
  2. In accordance with points 3 and 4 above, the values ​​in national currency of the thresholds applicable to the procurement chapters of the public sector of the Free Trade Agreements in question, for the period from July 1 to 31 Of December 2017, are as follows:
DEPENDENCIES OF THE FEDERAL PUBLIC ADMINISTRATION

LISTED IN PUBLIC SECTOR CHAPTERS OR PURCHASING TITLES

TYPE OF CONTRACT AMOUNT OF THRESHOLD NATIONAL CURRENCY BY TREATY
NAFTA, Mexico – Israel FTA, FTA Mexico – EFTA -TLCUE, FTA Mexico Japan, FTA – Mexico Chile and Pacific Alliance
Contracts for acquisitions, leases of movables and services, including those related to public works $ 1 ‘ 441,656.00

(One million four hundred forty-one thousand six hundred fifty-six pesos 00/100 MN)

Public works contracts $ 187 ‘ 416,721.00

(One hundred eighty seven million four hundred sixteen thousand seven hundred and twenty one pesos 00/100 MN)

PARENTAL ENTITIES OF THE FEDERAL PUBLIC ADMINISTRATION

LISTED IN PUBLIC SECTOR CHAPTERS OR PURCHASING TITLES

TYPE OF CONTRACT AMOUNT OF THRESHOLD NATIONAL CURRENCY BY TREATY
NAFTA, Mexico – Israel FTA, FTA Mexico – EFTA, TLCUE, FTA Mexico
Japan, FTA Mexico Chile and Pacific Alliance
Contracts for acquisitions, leases of movables and services, including those related to public works $ 7 ‘ 208,319.00

(Seven million two hundred and eight thousand three hundred and nineteen pesos 00/100 MN)

Public works contracts $ 230 ‘ 677,512.00

(Two hundred and thirty million six hundred seventy-seven thousand five hundred and twelve pesos 00/100 MN)