The European Union and Mexico finalize the modernization of their trade agreement

“We have completed the modernization of our global agreement with Mexico. It is a real opportunity to unlock new opportunities for our companies and consumers, and to strengthen our economic security,” announced the European Commissioner for Trade, Maros Sefcovic.

The trade pillar of the Agreement will substantially boost an already prosperous trade relationship: trade in goods between the European Union and Mexico reached €82 billion in 2023, while two-way trade in services was €22 billion.

Mexico is the second most important trading partner of the European Union in Latin America.

The new agreement will offer new business opportunities and support the EU’s green and digital transition, as it:

• Contribute to the increase of EU services exports in key areas, such as financial services, transport, e-commerce and telecommunications.
• Strengthen the supply chain of local critical raw materials, while improving the competitiveness of European industry.
• Eliminate non-tariff barriers and establish a level playing field, for example in terms of intellectual property rights.
• Give EU companies access to Mexican government contracts on equal terms with local companies.
• Promote and protect European investments in Mexico.
• Promote the digital transition on both sides, with a chapter dedicated to digital commerce.
• Improve standards to promote the reuse and repair of products important for sustainability.

Benefits for European farmers

The agreement will create a wealth of opportunities for EU farmers and agri-food exporters, as Mexico is a net importer of EU agri-food products.

• Eliminate tariffs of up to 100% on important EU export products, such as cheese, poultry, pork, pasta, apples, jams and jams, as well as chocolate and wine.
• Extend the protection of iconic and traditional European products (Geographical Indications) to 568.
• Make agri-food exports faster and cheaper through simpler procedures.

The agreement includes a broad chapter on trade and sustainable development:

• It establishes legally binding commitments on labor rights, environmental protection, climate change and responsible business conduct.
• They will be subject to a specific dispute resolution procedure that guarantees the effective application of these provisions.
• It gives an essential role to civil society organizations to monitor and advise on the implementation of the entire agreement.

The agreement will promote dialogue and cooperation between the EU and Mexico in:

• Shared values: human rights, democracy and the rule of law.
• Drugs, transnational organized crime and migration.
• Promotion and protection of multilateralism, with greater participation in the United Nations, the WTO and the G20.

This agreement is subject to final legal review, the EU and Mexico will now proceed with their respective celebration and ratification procedures.

The President of the European Commission, Ursula von der Leyen, stated: “The EU and Mexico are already trusted partners. We now want to further deepen our cooperation, which will greatly benefit our people and our economies. EU exporters will gain new business opportunities, including our farmers and agri-food companies. This historic agreement demonstrates that open, rules-based trade can deliver prosperity and economic security, as well as climate action and sustainable development. “I look forward to working with President Sheinbaum to deliver on the promise of this agreement.”

With information from AFP