Mexico is composed of 32 states. The states are free and sovereign, divided both administratively and
territorially into local governments having their power.
Mexico's principal trading partners include the United States, Canada, Japan, Germany, the United Kingdom, and France, The Nehterlands ans Spain. Mexico has entered into several free trade agreements, apart from the North American Free Trade Agreement ("NAFTA"). Like the one with the European Union (2000), as well as with various countries including: Chile, Colombia, Venezuela, Bolivia, Costa Rica, Nicaragua, Israel, Iceland, Norway, Liechtenstein, Switzerland, Uruguay, Guatemala, Honduras and El Salvador. All in all, Mexico has entered into 12 free trade agreements covering 43 countries.
Mexico has also signed treaties for the avoidance of double taxation with 61 countries. Including but not limited to: the United States, Canada, Germany, the Netherlands, Spain, Sweden, Switzerland, and South Korea.