Mexico Eu Free Trade Agreement

The agreement provides for the establishment of a joint committee (Article 70) to monitor and manage the agreement. Information sharing and consultations can take place in the joint committee. The joint committee also makes decisions in cases under the agreement or makes recommendations. The Joint Committee will also continue to examine the elimination of other barriers to trade between EFTA states and the further development of the agreement. On 30 May 2016, Mexico and the European Union formally began talks to update their current free trade agreement. The first round of negotiations for the modernization of the agreement was held in Brussels, Belgium, on 13 and 14 June 2016. The second round of negotiations for the modernization of the agreement was held in Mexico City from 22 to 25 November 2016. The new agreement will replace a previous agreement between the EU and Mexico in 2000. In April 2018, the EU and Mexico reached an “agreement in principle” on the trade side of a modernised global agreement between the EU and Mexico. The Economic Partnership, Political Coordination and Cooperation Agreement (Comprehensive Agreement), which sets out the objectives and mechanisms for liberalising trade in goods and services, was approved by the Mexican Senate on 20 March 2000 and by the European Parliament on 6 May 1999. Both sides are in the process of finalizing the legal revision of the text of the modernized agreement. After translation into all EU languages, it is sent to EU Member States and the European Parliament for signature and conclusion. Mexico is currently the EU`s largest trading partner in Latin America, while only the United States and Canada trade more goods with Mexico than the 27-person bloc.

Despite the distance and cultural differences between the two sides, there are already economic links between the EU and Mexico: trade in goods alone increased by 148% between 2000 and 2018, when the initial trade agreement between the two countries came into force. The European Union and Mexico have reached an “agreement in principle” on the main trade parties of a new eu-Mexico association agreement. The new agreement replaces a previous agreement between the EU and Mexico in 2000. However, the general incentives cited by De Biévre are generally not sufficient to encourage exporters, trade sectors and authorities on both sides to invest in one-year trade negotiations. Additional political incentives should give this general idea a final boost. The current update of the EU-Mexico agreement has been prompted to deepen and consolidate its commitment. Since agriculture accounts for just over one per cent of EU GDP, the threat posed by Mexican products outside the agricultural environment cannot cause much suffering. Instead, companies and wealthy individuals may be more interested in the terms of the agreement, which facilitate investment in each market, by limiting the number of companies likely to engage in specific economic activity. Changes in food standards may make headlines, but new investment criteria will determine where real money will end up. With regard to competition (Chapters IV, Articles 51-55), the agreement contains provisions relating to cooperation and exchange of information to ensure and facilitate the enforcement of the respective competition laws of the parties. The objectives of the agreement (Article 1) include the gradual liberalisation of trade in goods, in accordance with GATT Article XXIV, and the liberalisation of trade in services in accordance with Article V of the GATS.