The European Union and Mexico concluded on Tuesday 28 April the last outstanding element of the negotiation of their new trade agreement. Following a phone conversation, EU Trade Commissioner Phil Hogan and Mexican Minister of Economy Graciela Marquez Colín agreed on the exact scope of the reciprocal opening of public procurement markets and a high level of predictability and transparency in public procurement processes and can now advance to sign and ratify the agreement in line with their respective rules and procedures.
Commissioner Hogan stated that “While most of our efforts have been focused lately on tackling the coronavirus crisis, we have also been working to advance our open and fair trade agenda, which continues to be very important. Openness, partnerships and cooperation will be even more essential as we rebuild our economies after this pandemic. I am very pleased, therefore, that together with our Mexican partners, we share similar views and that our continued work could now come to fruition. Today’s agreement is clear evidence of our shared commitment to advance our agenda of partnership and cooperation. This agreement –once in force– will help both the EU and Mexico to support our respective economies and boost employment.”
Outlining the agreement
Under the new EU-Mexico agreement, practically all trade in goods between the EU and Mexico will be duty-free. The agreement also now includes progressive rules on sustainable development, such as a commitment to effectively implementing the Paris Climate Agreement. It is also the first time that the EU agrees with a Latin American country on issues concerning investment protection. Simpler customs procedures will further help boost exports.
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.
Mexico is the EU’s number one trade partner in Latin America with bilateral trade in goods worth €66 billion and trade in services worth another €19 billion (respectively 2019 and 2018 data). EU goods exports exceed €39 billion a year. EU-Mexico trade in goods has more than tripled since the entry into force of the original agreement in 2001. The modernised trade agreement will help boost this strong historical growth.