A new EU-Mexico trade agreement will remove tariffs on the trade of most goods, and contribute to sustainable development in the latter country.
The new EU-Mexico trade agreement forms part of a wider global agreement, and seeks to simplify customs procedures in sectors including agriculture, pharmaceuticals, machinery and transport. It also incorporates commitments on tackling corruption in both the public and private sectors, and to climate change targets established under the Paris Climate Agreement.
The agreement ensures that EU and Mexican companies have equal footing and are granted mutual access to government contracts. It also contains a high level of protection for intellectual property rights, and provisions which will help to develop digital trade.
What will the new agreement change?
In terms of tariff-free trade, agricultural exports from the EU are likely to receive the most benefit. The agreement will see the EU export some 30,000 tonnes of milk powder into Mexico, and also increase its exports of pork and cheeses such as Gorgonzola and Roquefort.
Additionally, products which will no longer be subject to duties include chocolate, on which tariffs are currently up to 30%, and pasta, on which tariffs are currently up to 20%. What’s more, the agreement will introduce new regulations which aim to accelerate paperwork and physical customs checks at the Mexican border.
Beyond tariffs, the agreement includes a comprehensive commitment on sustainable development, which establishes the highest possible standards for labour, safety, environmental and consumer protection. It will also be the first EU trade agreement to incorporate efforts to fight corruption.
What has the commission said?
European Commissioner for Agriculture, Phil Hogan, welcomed the new EU-Mexico trade agreement, which took less than two years to negotiate and sign, as an example of how Europe’s relationships with third countries can deliver strong economic growth.
He said: “Our commitment is to deliver benefits for our citizens at home through closer cooperation with our partners abroad. This deal is very positive for our agri-food sector, creating new export opportunities for our high-quality food and drink products, which in turn will create support more jobs and growth, particularly in rural areas.”
