EU-Mexico: new trade agreement
The European Union and Mexico concluded the negotiations of their new trade agreement.The EU and Mexico started the negotiations for this modernised agreement in May 2016. In April 2018, they reached a leaving for further discussion some outstanding technical issues.
On 28 April 2020 they concluded the agreement. Under the new EU-Mexico agreement, practically all trade in goods between the EU and Mexico will be duty-free.
In a nutshell, the new trade agreement
- Remove high Mexican tariffs on European food and drinks
- Allow EU firms to sell more services to Mexico
- Pledge to protect workers' rights and the environment
All industries trading between Mexico and the EU will benefit directly or indirectly from the modernisation of this agreement. However, certain sectors may benefit more, including:
- food and drink because tariffs will be cut and it will become illegal in Mexico to sell imitations of certain distinctive European regional food and drink products, such as Parma ham, Italian Prosecco and Irish whiskey.
- cars and car parts ,manufacturers will have more certainty because they'll continue to be able to export using international standards
- machinery because EU firms will be on a more level playing field.
- Medicaldevices pharmaceuticals because rules of origin will be streamlined.
Regarding the services EU firms that are specialized in business services, financial services, telecoms and transport are excepted to benefit.
Small bushiness also will benefit from this new agreement because of the ower costs through removal of non-tariff barriers and of the simpler rules of origin requirements
The agreement also now includes progressive rules on sustainable development, such as a commitment to effectively implementing the Paris Climate Agreement The new trade agreement includes commitments on:
- promoting the sustainable management of fisheries and forests
- conserving biodiversity
- combating the illegal wildlife trade
Furthemore The broader Global Agreement, of which the trade agreement is an integral part, also covers the protection of human rights, as well as chapters on political and development cooperation. It will also be the very first EU trade agreement to include provisions to fight corruption, with measures to act against bribery and money laundering
Once the legal revision of the agreement is concluded, the Commission proposal will be transmitted for signature and conclusion to the Council and European Parliament.