Political negotiations have concluded to modernise the EU's Global Agreement with Mexico, following political engagement between Commissioner for Trade and Economic Security Maroš Šefčovič and Mexican Secretary of Economy Marcelo Ebrard.
The agreement puts in place an ambitious and modern framework to deepen and widen EU-Mexico political dialogue, cooperation and economic relations. It will create new economic opportunities for both sides, including growth potential for EU agri-food exports to Mexico, while promoting shared values and progressive rules on sustainable development. It will also feature progressive rules to tackle corruption in the private and public sectors.
The agreement sets out the EU-Mexico joint ambition to promote and protect human rights, multilateralism and international peace and security. The agreement facilitates strategic cooperation on key geopolitical issues, keeping up with fast-changing realities. This includes de-risking of supply chains, securing sustainable supply of critical raw materials, and tackling climate change.
Such efforts will support the competitiveness of businesses on both sides, while advancing the shared goal of achieving a net-zero economy. It also seeks to reinforce engagement on sustainable development, transnational organised crime, migration and gender equality.
President of the European Commission, Ursula von der Leyen, said: "The EU and Mexico are already trusted partners. Now, we want to deepen our cooperation even further, strongly benefiting our people and economies. EU exporters will gain new commercial opportunities, including our farmers and agri-food companies. This landmark deal proves that open, rules-based trade can deliver for our prosperity and economic security, as well as climate action and sustainable development. I look forward to working with President Sheinbaum to deliver on the promise of this Agreement."
Boosting trade and enhancing economic security
The trade pillar of the Agreement will substantially boost an already-thriving trade relationship: EU-Mexico trade in goods reached €82 billion in 2023, while two-way trade in services reached €22 billion in 2022, making Mexico the EU's second-biggest trading partner in Latin America.
The new agreement will offer new business opportunities and support the EU's green and digital transition, as it will:
- Help grow EU services exports in key areas, such as financial services, transport, e-commerce, and telecommunications;
- Strengthen the supply chain of local critical raw materials, while improving the competitiveness of European industry;
- Eliminate non-tariff barriers and establish a level playing field, for example on Intellectual Property Rights;
- Give EU companies access to Mexican government contracts on an equal footing with local companies;
- Encourage and protect European investments in Mexico;
- Promote the digital transition on both sides, with a dedicated chapter on digital trade; and
- Improve rules to promote the reuse and repair of products important for sustainability.
Benefits for European farmers
The agreement will create a wealth of opportunities for EU farmers and agri-food exporters as Mexico is a net importer of EU agri-food products. It will:
- Remove tariffs as high as 100% on important EU export products, such as cheese, poultry, pork, pasta, apples, jams and marmalades as well as chocolate and wine;
- Expand the protection of iconic, traditional European products (Geographical Indications) to 568; and
- Make agri-food exports quicker and cheaper through simpler procedures.
A modern sustainable deal
The agreement includes a comprehensive trade and sustainable development chapter, which:
- Sets legally binding commitments on labour rights, environmental protection, climate change and responsible business conduct;
- Will be subject to a specific dispute settlement procedure, ensuring the effective implementation of these provisions;
- Grants an essential role to civil society organisations to monitor and advise on the implementation of the entire deal.
A strong commitment to human rights, security, and multilateralism
The agreement will boost EU-Mexico dialogue and cooperation on:
- Shared values: human rights, democracy and the rule of law;
- Drugs, transnational organized crime and migration;
- Promotion and protection of multilateralism, with enhanced engagement in UN, WTO, G20.
Next Steps
Subject to final legal revision, the EU and Mexico will now proceed with their respective procedures for conclusion and ratification.
The official documents will be published online over the next days.
Background
Political, trade and cooperation relations between the European Union and Mexico are governed by the Economic Partnership, Political Coordination and Cooperation Agreement (Global Agreement) , which came into force in 2000. Since 2008, Mexico has been one of the ten strategic partners of the EU.
The EU and Mexico started the negotiations for a new, modernised global agreement in May 2016. The modernised Global Agreement will set the future framework for the EU's relationship with Mexico and, beyond a comprehensive trade agreement, covers issues of broader shared interest, including political issues, climate change and human rights.
