Mexico and the European Union have agreed a deal to update their free trade agreement that will see the elimination of tariffs on virtually all agricultural products.
The new deal, which has been under negotiation for almost two years, upgrades a previous agreement signed in 1997 that was mainly focused on liberalising trade in industrial goods.
It will mean that 99 per cent of products can be traded between the EU and Mexico duty free. For 98 per cent of goods there will be no duties from the moment the agreement becomes effective. For the remaining items, customs duties will be eliminated over time or for a limited amount defined as a quota.
The agreement will make it much easier for EU exporters to sell their products in Mexico and save up to €100m a year in customs duties.
Mexico will remove its high tariffs on key EU foods, including apples and canned peaches, which are currently subject to a duty of up to 20 per cent.
In return, Mexico will enjoy liberalised access for its fruits and vegetables, orange juice and agave syrup, among other products.
The agreement also includes a comprehensive commitment on sustainable development, which establishes the highest possible standards for labour, safety, environmental and consumer protection. It will also be the first EU trade agreement to incorporate efforts to fight corruption.
“With the conclusion of this new agreement, Mexico and the European Union send a strong message to the world about the importance of keeping markets open, working together multilaterally to face global challenges,” the Mexican government said.
The new EU-Mexico trade agreement forms part of a wider global agreement, and seeks to simplify customs procedures in sectors including agriculture, pharmaceuticals, machinery and transport.
It also incorporates commitments on tackling corruption in both the public and private sectors, and to climate change targets established under the Paris Climate Agreement.
The EU is Mexico’s third biggest trading partner, and Mexico, with 128 million people, is the EU's second biggest trading partner in Latin America after Brazil.
Total EU-Mexico trade in 2017 amounted to €62bn billion for goods and €15bn billion for services (2016).
