EU-Mexico deal is a glimmer of light

"Even in times of crisis, we Europeans want to build bridges across the Atlantic and create open, fair and clear rules-based trade", said Enikő Győri MEP, EPP Group Spokeswoman on Mexico, following the announcement that the EU and Mexico have finally ended negotiations on their modernised trade deal.

As a major upgrade of an original deal from 2000, the new agreement will scrap still existing customs duties on most of the goods like almost all food and drink products. It makes it much easier for EU exporters to sell their products in Mexico and save up to €100 million a year in customs duties. 340 geographical indications will also be protected, including many European iconic products such as Comté cheese from France or Szegedi szalámi from Hungary. The agreement will also boost trade in services by opening up financial services, transport, electronic commerce and telecommunications. It will be the first agreement concluded with a Latin American country which provides for investment protection.

“The COVID-19 pandemic increases the temptation for some countries to become protectionist to defend their markets. However, our entrepreneurs, especially the small and medium-sized ones, and our farmers need to do business, and international trade creates opportunities for them to get swiftly back on their feet. When some doors on the other side of the Atlantic are being slammed shut, it is important to open new doors. This deal is a glimmer of light that companies urgently need. Sustainable export-led recovery will have to be part of the solution for our economies to rebound”, explained Christophe Hansen MEP, EPP Group Spokesman on the European Parliament's Trade Committee.

“The guarantee of open markets at the sub-federal level was a sine qua non condition on the EU side for signing this deal, and Mexico accepted it. It is a real step forward that will provide further business opportunities for EU firms looking for greater access to the Mexican market. I am sure the modernised agreement will highly contribute to the economic recovery on both sides of the Atlantic by reducing custom duties", stressed Győri.

Mexico, with 128 million people, is the EU's second biggest trading partner in Latin America after Brazil. Total EU-Mexico trade amounts to €66 billion in goods and €19 billion in services.