The European Union and Mexico have reached an agreement to expand their nearly twenty-year-old trade deal. The new agreement includes the opening of the European market to 20,000 tons of Mexican beef annually, subject to significantly reduced customs duties. Simplified customs procedures will also further stimulate exports between the two trade blocs.
Under the new agreement, nearly all trade in goods is duty-free, with limited exceptions for agricultural products. This agreement validates the import of 20,000 tons of Mexican beef per year at a substantially reduced customs duty rate (7.5%). Currently, Mexican beef does not meet the EU’s health standards. For this reason, it has until now been excluded from export to Europe, laments the French meat giant Interbev regarding the potential arrival of new competition. The French meat industry believes President Macron should try to block this trade deal, especially given the ongoing COVID-19 pandemic and discussions about protecting the local food supply.
Mexico is the EU’s most important trading partner in Latin America, with trade in goods valued at 66 billion euros and services worth 19 billion euros. EU exports of goods amount to more than 39 billion euros annually. Trade in goods has more than tripled since the original agreement came into force in 2001.
This will also be the EU’s very first trade agreement with provisions on combating corruption, including measures against bribery and money laundering. Mexico was the first Latin American country to sign a global agreement with the EU in 1997.
The EU and Mexico began negotiations on this new, modernized agreement in May 2016. EU Trade Commissioner Phil Hogan and Mexican Economy Minister Graciela Márquez ColÃn agreed this week on the exact scope and final legal details. This now enables the EU and Mexico to move forward to the parliamentary approval and ratification phase. The agreement must now be approved by the European Council and the European Parliament.