The European Union and Mexico have reached a free trade deal, part of their modernized EU-Mexico Global Agreement. All trade in goods between both sides will now be duty-free including agricultural products, which are set to benefit the most, especially trade in poultry, cheese, chocolate, pasta and pork.
The deal includes a comprehensive trade and sustainable development chapter, setting the highest standards of labor, safety, environmental and consumer protection. The agreement also introduces a new platform for dialogue with civil society in all areas of the agreement, and strengthens the EU’s and Mexico’s actions on sustainable development and climate change. Mexico City and Brussels have also committed to implementing their obligations under the Paris Agreement.
Simple customs procedures will also benefit the European and Mexican economies in sectors like pharmaceuticals, transport equipment and machinery. It will also be the first EU trade agreement to address corruption in the private and public sectors. The deal is a major step forward in giving businesses mutual access to government contracts in both the EU and Mexico procurement markets. EU and Mexican companies will be treated equally, irrespective of whether they present a bid in Mexico or in the EU.
The new trade deal also opens up trade in services such as e-commerce, transport, financial services and telecom. The agreement includes chapters to develop a knowledge-based economy and favorable environment for digital trade, removing unnecessary barriers to online trade like customs duties. On investment protection, the agreement improves investment climate, ensures transparency and advances the work towards establishing a Multilateral Investment Court. All in all, this deal further cements the EU’s leadership in shaping globalization by introducing trade rule that are in line with the EU’s areas of interests and core values.