As in 1997, when the Economic Partnership, Political Coordination and Cooperation Agreement (Global Agreement, in force since 2000) was concluded, Mexico and the European Union have written a new page in their history by negotiating the most advanced agreement of its kind. In addition to a strong section that adds new areas to promote trade and investment, thus strengthening our trade and economic relations, it also includes political and cooperative aspects that will highlight Mexico and the European Union as global players for the benefit of their societies. Negotiations to extend and modernise the scope of the EU-Mexico Comprehensive Agreement started on 25 May 2016. The agreement has been adapted to new global political and economic challenges. Modernisation includes good regulatory practices, increased trade in the agriculture and food sectors, common sanitary and phytosanitary standards (food safety and animal and plant health), sustainable development of labour and the environment, rules of origin and investment protection. The political part of the agreement deals with, inter alia, human rights, the fight against corruption and cooperation at international level. On behalf of the Mexican government, the Ministry of Foreign Affairs and the Ministry of Economy announce the successful conclusion of negotiations on a new global agreement with the European Union. It includes political, economic and cooperation aspects to strengthen political dialogue, boost trade and investment, and strengthen technical and scientific cooperation for the benefit of both societies. As in the case of Mexico, EU countries have explicitly asked the Commission to present the Mercosur agreement as a mixed agreement. However, several national parliaments have already promised to reject the agreement in its current form, making a purely European agreement a more attractive scenario for the Commission.
In the document, the Commission already seems to anticipate possible criticism from individual national governments, saying that « the changes do not imply substantial changes, so that the outcome of the negotiations of the agreement is fully respected ». Negotiations to extend and modernise the scope of the EU-Mexico Comprehensive Agreement started on 25 May 2016. Virtually all trade in goods between the EU and Mexico will now be duty-free, including in the agricultural sector. More flexible customs procedures will continue to benefit EU industry, including in sectors such as pharmaceuticals, machinery and vehicles. The agreement also establishes progressive rules for sustainable development. Among other things, the EU and Mexico are committed to effectively implementing their commitments under the Paris Agreement. The Free Trade Agreement between Mexico and the European Union (EU-MX FTA) is a trade agreement between the European Union and Mexico. It was signed in Brussels on 8 December 1997 under the title « Economic Partnership, Political Coordination and Cooperation Agreement between the United Mexican States and the European Community[1] and its members ». On 1 October 2000, the Agreement entered into force[2] and taxes levied on a large quantity of imported goods were abolished or reduced.
The agreement contains binding commitments to protect workers` rights on the basis of International Labour Organisation conventions and to protect the environment and climate on the basis of multilateral environmental agreements. Referring to the Paris Agreement, the agreement supports the fight against climate change and the transition to a sustainable low-carbon economy. The agreement contains commitments to the sustainable management of forests and fisheries. Welcoming the new trade agreement, Minister Humphreys said: « Twenty-one years ago, the global agreement signed with Mexico, which largely covers industrial products, was the most comprehensive and progressive trade agreement ever concluded by the EU. Today, this ambitious successor agreement, along with recent trade agreements with Canada, Japan and Singapore, sends a strong and positive message to global trade. The agreement, which already exports more than €2 billion worth of goods and services, has the potential to grow further through better market access, lower tariffs and administrative simplifications for exporters. The 1997 agreement between the EU and Mexico did not contain many provisions on trade in goods that are now the norm and did not cover a number of agricultural and fishery products. From the date of entry into force of the agreement, no customs duty will be imposed on 98% of the goods. For other products, customs duties are abolished over time or for a limited amount defined as a quota. The agreement will accelerate trade while maintaining strict health and hygiene standards for food.
The agreement also contains an explicit reference to the precautionary principle, which governs the parties` approach to decision-making. This means that, as already enshrined in the EU Treaties, the EU can continue to keep products off its market as long as there is no scientific certainty that they are safe. Trade Minister Breen added: « I am pleased that a political agreement has been reached on free trade negotiations with Mexico. The agreement offers Irish companies a huge market opportunity in Mexico by opening up public contracts and removing trade barriers that reduce the cost of accessing that market. The agreement contains a special central chapter for SMEs. This will be particularly beneficial to them, as trade barriers tend to place a disproportionate burden on small businesses that have fewer resources to overcome them than large firms. On 14 July 1998, a Joint Committee on the Interim Agreement was set up and negotiations on a free trade agreement were opened. Nine rounds of negotiations took place from November 1998 to November 1999. Negotiations on the Free Trade Agreement between Mexico and the EU were concluded on 24 November 1999. In April 2018, the EU and Mexico reached an « agreement in principle » on the trade area of a modernised global agreement between the EU and Mexico.
Under the agreement, Mexico will also recognize the certification of industrial products carried out in the EU. This will make it easier for EU companies to prove that they have complied with Mexican standards and regulations. Mexican exporters must continue to comply with strict EU standards and regulations, as is currently the case. On 28 April 2020, the EU and Mexico concluded the final outstanding element of the negotiations on their new trade agreement, namely the exact scope of the reciprocal opening of public procurement at sub-central level. The final text is reviewed by lawyers from both sides, a process called « legal cleanup. » After legal clarification and translation into all official EU languages, the agreement will be submitted to EU Member States and the European Parliament for approval before being signed. The EU exports around €10 billion worth of services to Mexico every year. The agreement will facilitate the EU`s access to Mexico`s growing services market, while reaffirming the right of the EU and Mexico to regulate. Both sides are currently finalising the legal revision of the text of the modernised agreement.
Once translated into all EU languages, it is sent to the EU Member States and the European Parliament for signature and conclusion. The agreement contains in principle the main agreed chapters, and the EU and Mexico will continue to work on the remaining technical issues. .