The EU has concluded negotiations with Mexico on an updated trade agreement, the European Commission announced in a press release on Friday.

Mexico is the EU’s second largest trading partner in Latin America after Brazil.

Negotiations for a new modernised agreement started in May 2016 and an agreement in principle on trade aspects was reached in 2018, but was never ratified. Currently, trade and cooperation relations between the EU and the Latin American country are governed by a 2000 Global Agreement.

“The EU and Mexico are already trusted partners,” said Commission President Ursula von der Leyen. “Now, we want to deepen our cooperation even further, strongly benefiting our people and economies,” she added, noting that farmers and agri-food companies will also gain new export markets.

The announcement comes just over a month after the EU signed a similar deal with the Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay), which has been strongly contested by the farming sector.

The Commission said the trade elements of the agreement will boost “an already-thriving” relationship. EU-Mexico trade in goods reached €82 billion in 2023, while two-way trade in services reached €22 billion in 2022.

The agreement will also allow the removal of high tariffs on EU exports of food and agricultural products, including cheese, poultry, pork, pasta, apples, jams, chocolate and wine, as well as protecting traditional European products.

The deal includes a chapter on trade and sustainability that sets out binding commitments on labour rights, environmental protection, climate change and responsible business products, the Commission said. It also includes a dispute settlement mechanism to ensure the enforcement of these provisions.

Among the most contentious issues in the negotiations were investment protection and the recognition of traditional EU food and drink products – geographical indications – in Mexico.

[Edited by OM]

Source: Euractiv.com