On Friday, July 22, 2016, the United States and Mexico exchanged diplomatic notes to bring their new Air Transport Agreement into force.

“This landmark agreement with one of our largest aviation partners will significantly increase future trade and travel between the United States and Mexico,” said U.S. Transportation Secretary Anthony Foxx.

The Air Transport Agreement was signed by Foxx and Mexico’s Secretary of Transport Gerardo Ruiz Esparza on December 18, 2015. The opportunities established in the agreement will become available to U.S. and Mexican airlines on August 21, 2016.

This agreement eliminates government interference in commercial airline decisions, providing open, unlimited routes between the United States and Mexico. It also expands opportunities for cargo flights between the two countries.

Under the old agreement, a limited number of U.S. carriers could operate between any given city pair. The new agreements provides carriers with new opportunities to serve any location in Mexico from any location in the U.S.

On the trade front, the agreement provides new rights to all-cargo carriers, allowing them to establish new routes and provide faster services at better rates for shippers. These new routes will also create new opportunities to expand the U.S.-Mexico cargo market.

“The new agreement will benefit U.S. and Mexican airlines, travelers, businesses, airports, and communities by allowing increased market access for passenger and cargo airlines to fly between any city in Mexico and any city in the United States,” said Foxx. “Cargo carriers will now have expanded opportunities to provide services that were not available under the more restrictive agreement.

“This new Air Transport Agreement further elevates and strengthens the dynamic commercial and economic relationship between the United States and Mexico and advances our goal of shared prosperity,” Foxx added. “This agreement will allow carriers on both sides of the border to better meet increasing demand in our countries, helping to drive economic growth in sectors beyond aviation, including tourism and manufacturing.”