Eu and Mexico Trade Agreement
Negotiations began in 2016. In April, the EU and Mexico agreed on the intention of both sides to conclude a final text of the agreement by the end of 2018. “The new type of commitment signed by the EU and Mexico ensures the stability and credibility on which investors and exporters can reliably build their long-term investment and distribution decisions,” de Bièvre said. “There is political and legal certainty – an asset that is now very rare in the United States. For Mexico, this type of stable and deep trade relationship with one of the three most important players in international trade policy, the EU, is an important insurance policy. So there is untapped potential for more trade and investment on both sides. This untapped potential means: The 28th. In April 2020, Mexico and the European Union concluded negotiations on modernising the trade pillar of the agreement. This was the last outstanding element of their new trade agreement. According to the International Monetary Fund, Mexico is the second largest economy in Latin America and the 15th largest in the world in nominal terms. It promotes values similar to those of the EU, including open and fair trade based on international rules. Given that the agreement between the United States, Mexico and Canada – the agreement that replaced NAFTA on July 1 – offers less favorable terms than Mexico before, the signing of a new agreement with the EU came at an opportune time. Whether they apply to foreign or domestic service providers, the agreement will not change or affect EU or Mexican regulations in the following areas: the EU and Mexico have agreed that the trade agreement between them must support existing environmental laws and not reduce or dilute them. The agreement prohibits both sides from pursuing “a race to the bottom.” They must therefore not unduly promote trade and investment by: since agriculture accounts for just over one percent of the EU`s GDP, the threat of Mexican products outside agricultural circles cannot cause much suffering.
Instead, companies and high net worth individuals may be more interested in the terms of the agreement, making it easier to invest in any market, removing the limit on the number of companies that can engage in a particular economic activity. Changes in food standards may make headlines, but new investment criteria will determine where real money will end up. Negotiations with Mexico began in May 2016 and the two sides reached an agreement in principle on the trade side in April 2018. And the new agreement will allow the EU and Mexico to discuss a number of issues such as human rights with civil society, including: Once the negotiations are concluded, the text of the agreement in the EU will read as follows: negotiating trade agreements on behalf of the 27 Member States has long been a core competence of the European Commission, but EU trade officials are finding it increasingly difficult to ratify agreements in 38 national and regional parliaments. The agreement is without prejudice to EU or Mexican law: as part of the ongoing evaluation, the contractor organises several workshops to gather stakeholders` views. The audit informs EU negotiators of the measures they may need to include in the agreement to offset potentially negative environmental impacts and ensure that it is part of EU environmental policy. In 2015, the European Commission published new guidelines on transparency. Since then, the Commission has published all the new negotiating documents presented in the context of the trade negotiations.
A trade deal with Mexico could make it much easier for European producers to export to Mexico and gradually reduce tariffs by up to €100 million a year. The modernised agreement aims to further facilitate exports to other people`s markets and their investments by also agreeing to remove other barriers to trade, such as unclear rules and regulations, in order to make it easier for European producers to export their products to Mexico. The EU-Mexico agreement will not change the rules that suppliers – whether domestic or foreign – must comply with: the original Association Agreement has brought many trade benefits to the EU and Mexico, although some trade barriers remain. Asked about the draft document, a Commission spokesman said that “no decision has been taken on a possible split of the agreement” because the technical work has not yet been completed. Following parts of the draft document consulted by POLITICO, the Commission is now proposing to split the agreement with Mexico into three parts: a political and cooperation agreement, a trade agreement and an investment protection agreement. 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. At a time when protectionist pressures are mounting, a trade deal between the EU and Mexico would send a clear signal to the world that they are doing both: the agreement also contains provisions on corporate governance. The aim is to attract and encourage investment by strengthening investor confidence and improving competitiveness. .