US-Mexico Modernization Agreement One Step Closer to Globalization

The U.S.-Mexico Air Transport Agreement went into effect in January 2016. This agreement removed many of the restrictions that prevented more than a certain number of airlines based in both countries from flying between them. The agreement, which is somewhat different from other Open Skies agreements, eliminates rules that limited service between the countries to just a small number of airlines and routes.

The difference with this treaty is that it removes many of the takeoff and landing appointment regulations, but in some of the busiest Mexican airports, airlines still need to make appointments to land. Because of the congestion in those airports, it’s often difficult to obtain those appointments, making it tough for carriers new to the routes to break into those markets.

Overall, the agreement seems to be good for airlines as well as other industries in both countries. For example, direct flights that became available almost as soon as the restrictions were lifted allow businesspeople and vacationers to travel between most major cities in the U.S. and popular destinations in Mexico, most likely resulting in more jobs and higher revenues for both countries.

Equally enticing as the increase in tourism made possible by this agreement is the increase in trade and trade routes. The agreement allows U.S. cargo flights to move from Mexico to other countries without having to fly back to the U.S. first. This could decrease the cost of cargo transportation, making exported goods more competitive. Furthermore, Mexico has opened some previously unavailable locations for cargo transport, which, according to the Huffington Post article, will open up previously unavailable opportunities.

It took several years for this modern aviation agreement to come together, and it replaces a treaty that, according to the Airways article, was established in 1960. Still, the implications are nothing short of exciting. New routes, new flights, and new opportunities to strengthen ties and allow growth in a global economy have aviation industry insiders and the public alike excited to see what’s coming next.