ec.europa.eu (Evropská komise)
European Union  |  January 17, 2025 15:00:00, updated

Questions and answers on the EU's Global Agreement with Mexico

Q&A on the EU's Global Agreement with Mexico

Why did the EU update its agreement with Mexico?

In 1997, the EU and Mexico signed an Economic Partnership, Political Coordination and Cooperation Agreement. It included a part on trade, which mostly opened up trade in goods. This trade agreement came into force in 2000. The part of the agreement covering trade in services came into force in 2001. More than two decades on, it is time to update this agreement, incorporating up to date provisions spanning from intellectual property rights to trade and sustainable development.

This agreement will create valuable new commercial opportunities for EU exporters and investors, while strengthening ties with a trusted strategic partner.

At a time when protectionist pressures are growing, the agreement sends a clear signal that both our economies are open for trade and business on the basis of fair rules and high standards.

How big is the Mexican market? How much trade does the EU do with Mexico?

Mexico is the second largest economy in Latin America and the 12th largest in the world, according to the International Monetary Fund. It promotes similar values to the EU, including open and fair trade based on international rules and support of the multilateral rules-based system. As a dynamic emerging economy of 131 million people, Mexico holds huge potential for EU firms to increase their exports.

The EU and Mexico already trade a lot:

The EU is Mexico's second export market and its third biggest trading partner. Mexico is the EU's second biggest trading partner in Latin America after Brazil.

EU firms exported to Mexico:

  • €53.1 billion of goods in 2023
  • €15.2 billion of services in 2022

and imported from Mexico:

  • €28.6 billion of goods in 2023
  • €7.9 billion of services in 2022

What is the added value of an updated agreement?

The EU-Mexico trade agreement of 2000 has greatly benefited EU firms. But it does not address some of the new trade and investment issues important today.

The EU's Global Agreement with Mexico aims to make it even easier to export to and invest in each other's markets, and strengthen further the EU-Mexico partnership by:

  • lifting non-tariff barriers, such as Mexican restrictions on EU food products;
  • safeguarding European intellectual property in Mexico;
  • lowering tariffs on more products – mainly agricultural goods;
  • protecting more Geographical Indications (GIs) – distinctive food and drink products from specific regions in the EU;
  • improving cooperation and supply chains on raw materials critical for the green and digital transitions;
  • opening up new markets in government procurement;
  • ensuring better access to the services market;
  • protecting European investments in Mexico;
  • ensuring predictability and legal certainty for businesses that trade by electronic means;
  • facilitating more trade and investment by small and medium-sized enterprises (SMEs);
  • helping create additional export-related jobs, which are on average higher-paying;
  • promoting sustainable development.

What are the main improvements under the new agreement?

  • Remove tariffs

Mexico imposes high tariffs on imports from the EU, such as food and other agricultural products. Under the agreement, Mexico will scrap/remove/eliminate almost all these tariffs so that European products will be more competitive in Mexico and more attractive to Mexican consumers.

  • Remove non-tariff obstacles to trade

Rules and regulations which are not consistent with international agreements, international standards or established practices may create obstacles to EU exporters by imposing extra compliance costs. The agreement will eliminate unnecessary technical trade barriers, providing concrete improvements in many areas where it is currently difficult for European exporters and importers to trade with Mexico. By agreeing to more convergence with international standards, it will be easier for EU firms to export to Mexico. For example, the agreement includes a Motor Vehicles Annex which will facilitates EU export of car parts through the acceptance of internationally recognised test reports (UNECE) and EU certificates.

What will the agreement mean for trade in goods?

The agreement makes it easier to export to Mexico and is expected to benefit all EU firms, but especially those producing and selling:

  • agri-food products;
  • machinery;
  • mineral fuels and related products;
  • pharmaceuticals;
  • transport equipment.

Which sectors will benefit most?

All industries trading between Mexico and the EU will benefit directly or indirectly from the modernisation of this agreement.

Certain sectors which particularly benefit include:

  • food and drinks: tariffs will be cut, and the deal will ensure that imitations of certain distinctive European regional food and drink products are not sold on the Mexican market, such as Parma ham, Rioja wine, Roquefort cheese and Tiroler Speck.
  • pig and poultry meat industry: more establishments will be able to export without undue delays, thanks to prelisting and acceptance of products from recognized pest free zones and without cost in case Mexico decides to audit Member States.
  • cars and car parts: manufacturers will have more certainty because they will continue to be able to export using international standards.
  • machinery: EU firms will be on a more level playing field, thanks to a set of rules of origin allowing EU exporters to benefit from preferential trade under the agreement.
  • medical devices: in addition to continuing trading at zero duties, manufacturers will also benefit from reduced customs processing fees, and zero duty access to remanufactured goods and repaired goods.
  • pharmaceutical products: specific rules of origin will be streamlined.

What will the agreement mean for trade in services?

The agreement will make it easier for EU firms to sell their services in Mexico. Firms in the following areas, in particular, are expected to benefit:

  • business services;
  • financial services;
  • telecoms;
  • transport.

As a general rule, the agreement will give EU and Mexico service providers the same opportunities, preventing discrimination in both markets.

More specifically, the agreement will:

  • ensure the EU and Mexico can regulate their services markets in a non-discriminatory manner;
  • not affect public services like healthcare or education.

Whether they apply to foreign or domestic services suppliers, the agreement will preserve Mexico's right to regulate on:

  • health and safety;
  • environmental standards;
  • qualification requirements;
  • labour rights;
  • working conditions.

How will the agreement help smaller businesses and not just big ones?

The vast majority of companies in both the EU and Mexico are small and medium-sized enterprises (SMEs) and the agreement will address their specific needs.

The agreement includes a dedicated SME chapter that will allow for a better information exchange, including enhanced information for SMEs on how to access the Mexican market and vice versa.

Moreover, SMEs will benefit from a dedicated institutional set-up (SME Contact Points) that will ensure bilateral government-to-government work so that SMEs take advantage of the agreement.

SMEs will also benefit from:

  • lower costs through removal of non-tariff barriers;
  • simpler rules of origin requirements;
  • increased regulatory cooperation between the EU and Mexico;
  • convergence of EU and Mexican standards.

How will the agreement benefit the EU's farming communities?

The EU always ensures that the interests of EU farmers and food producers are reflected in all trade negotiations, by helping them to export their products abroad while protecting their interests and sensitivities at home.

EU farming communities stand to gain from easier access to the Mexican market and more opportunities to sell their produce to approximately 131 million Mexican consumers.

Mexico is a net importer of EU agri-food products. A growing number of Mexican consumers enjoy high quality European products, such as cheese, poultry, pork, processed foods, and chocolate.

Mexico will completely remove its high tariffs at the final stage of implementation of Agreement to allow duty-free access for EU agri-food exports, such as pasta (currently subject to tariffs of up to 20%), chocolate and confectionary (with tariffs exceeding 20%), blue cheeses (up to 20%), potatoes (up to 20%), apples and canned peaches (up to 20%), eggs (with a current tariff of 45%), pork products (up to 45%, with the exception of pork loins) and economically relevant poultry products (up to 100%).

For other products the agreement will deliver significant new market access within annual limits, for example:

EU product

Current Mexican duty rate

Volume of 0% tariff-rate quota for EU products

DAIRY

Milk powder

Up to 50% 50 000 tonnes

Other Cheeses

Dairy preparations

Up to 45%

Up to 45%

20 000 tonnes

13 000 tonnes

Fresh and processed cheeses

Butter

Up to 45%

20%

5 000 tonnes

2 500 tonnes

MEAT

Beef

Poultry legs

Pork loin

20%

100%

Up to 45%

30 000 tonnes

20 000 tonnes

13 000 tonnes

Mexico and the EU also agree to lift other trade barriers such as cumbersome rules and regulations so it will be easier for European producers to export their produce to Mexico.

How will the agreement help EU food and drink producers market their distinctive regional products (Geographical Indications)?

The EU is the global leader for distinctive regional food and drink products, such as Parma ham, Bavarian beer, Rioja wine, Roquefort cheese and Tiroler speck.

These products enjoy a special status known as a 'Geographical Indication', which lets consumers know that they are the genuine article. It also allows European producers to earn a premium price for the quality of their produce, while making sure that they are not copied abroad.

About a hundred EU spirits with geographical indications are already protected under the 1997 EU-Mexico Spirits Agreement. Under the new trade agreement, Mexico will protect 232 spirits and an additional 336 European Geographical Indications on wines, beers and food. This means that only products produced in the EU will be allowed to be sold in Mexico under the protected names.

This will:

  • help European producers and exporters avoid unfair competition from other non-authentic products,
  • contribute to obtaining a premium price for a recognised high-quality, authentic agri-food product of EU origin,
  • give assurance to Mexican consumers that they are buying a genuine high-quality European product.

How will the agreement open up Mexico's public procurement market?

Under the new agreement Mexico has agreed to:

  • create more opportunities for European companies, by ensuring they can bid for more public contract on the Mexican market, including contracts for Public Private Partnerships;
  • extend market opportunities for European bidders to the procurement markets of 14 Mexican States;
  • make it easier for European firms to bid for Mexican government contracts;
  • treat bids from European firms on an equal footing to those from Mexican firms
  • ensure its public procurement processes are predictable and transparent.

How will the agreement support the green and digital transitions?

The modernised EU-Mexico Agreement will make Mexico a privileged partner for the European Union, in particular supporting the green and digital transition and EU's de-risking strategy. This will be achieved by:

  • Ensuring better supply and diversification of critical raw materials, including by supporting EU investments in Mexico.
  • Removing barriers to e-commerce, and also serving as a platform for cooperation between the EU and Mexico in the digital field and laying the foundations for a more ambitious dialogue in this area.
  • Boosting the growth of trade in green technologies between the EU and Mexico.

How will the deal help Europe's innovators, creative industries, and artists?

EU intellectual property rights holders will be protected in Mexico under this new agreement better than under the WTO TRIPS Agreement. Mexico will ensure higher standards of protection and enforcement of intellectual property rights, such as:

  • Copyright and related rights: the agreement covers all rights protected by the EU legislation and mirrors the high EU standards as regards the term of protection.
  • Trademarks: the agreement includes the commitment to accede to the Madrid Protocol and the Nice Agreement and follow the EU approach on the possibility of seizing goods in transit.
  • Designs: the agreement protects industrial designs for up to 25 years.

How will the agreement encourage more investment between the EU and Mexico?

The agreement will make it easier to invest in each other's markets, supporting more companies to invest and set up business operations.

The agreement also contains provisions on investment protection. The aim is to attract and enhance investment by raising investor confidence and improving the level playing field. This will encourage investors to make the most of the opportunities created by the agreement.

The agreement improves investment protection by replacing the old system of investor-state dispute settlement system with a new Investment Court System and ensuring a proper balance between protection of investment and government's right to regulate in public interest. The Investment Court System:

  • sets up a permanent tribunal for each EU trade agreement, together with the trade partner;
  • has highly qualified judges, randomly assigned to each case;
  • avoids conflict of interest by preventing judges from also working as investment lawyers;
  • includes the right to appeal against verdicts and the possibility to reverse the court's decisions;
  • makes all documents available online, with web streamed hearings for all to see.

The EU has already included the Investment Court System in its agreements with Canada, Singapore, Vietnam and Chile.

How will the agreement protect European standards, including food safety standards?

As with all the EU's trade agreements, the agreement with Mexico will not change European product standards, including standards for food and agricultural products.

And, like all the EU's trade agreements, it safeguards the EU's right to apply its own standards to all goods and services sold in Europe.

All imports from Mexico must meet EU rules on:

  • technical standards for products;
  • consumer safety;
  • environmental protection;
  • animal and plant health;
  • food safety and genetically modified organisms (GMOs).

Thanks to the negotiations, the EU and Mexico are cooperating more closely in several international standard-setting bodies in areas, such as:

  • pharmaceuticals;
  • chemicals;
  • the International Organization for Standardization (ISO);
  • the International Electrical Commission and;
  • the Codex Alimentarius – the food standards set by the United Nations Food and Agriculture Organization and the World Health Organization.

As EU standards are already in line with international ones, this will make it easier for EU firms to export to Mexico.

How will the agreement help to stem corruption?

The new EU-Mexico agreement includes provisions aimed at combatting and preventing corruption in trade and investment.

Both sides reiterate the commitments contained in the United Nations Convention Against Corruption (UNCAC) to:

  • make bribery a criminal offence for government officials;
  • consider making bribery an offence for businesses;
  • ensure that private individuals or businesses that act in a corrupt way can be prosecuted.

In addition, the EU and Mexico will work on preventing corruption by:

  • putting in place and enforcing codes of conduct for government officials;
  • encouraging companies to:
    • train their staff in ethics
    • audit and publish their accounts.

The EU and Mexico will fight money laundering by ensuring that:

  • the identity of who really owns a bank account, trust or fund (the 'beneficial owner') is always known;
  • tax, judicial and other relevant authorities can access that information.

The Agreement enables civil society to hold the EU and Mexico accountable for fulfilling their pledges in the agreement.

How will the agreement help uphold human rights issues in Mexico?

The agreement is a part of the wider strategic partnership between the EU and Mexico, which will strengthen cooperation and include regular high-level meetings between Mexico and the EU in the areas of human rights, security and justice.

The EU will continue to support projects implemented by non-governmental organisations to promote human rights, social cohesion and security in Mexico, as well as the role of civil society.

The new agreement will also enable the EU and Mexico to discuss a range of issues like human rights with civil society, including:

  • trade unions;
  • environmental campaigners;
  • human rights groups;
  • business associations;
  • journalists;
  • academia and think tanks.

How will the agreement uphold labour rights in both the EU and Mexico?

The EU has strong laws protecting workers' rights. The EU and Mexico have agreed that the new trade agreement must support existing rights and not lower or dilute them.

The agreement prohibits either side from unduly encouraging trade and investment by:

  • derogations from labour laws;
  • not enforcing labour laws.

The agreement will thus help ensure that liberalising trade goes hand in hand with upholding workers' rights.

Including provisions on sustainable development in the new agreement will have a positive impact on the promotion and respect of human rights because it will encourage Mexico to implement International Labour Organization (ILO) core labour standards.

What about the agreement's impact on the environment?

Before launching the negotiations, the Commission carried out an impact assessment. The impact assessment, published in 2016, looked at the potential environmental, social and economic effects of the agreement.

It concluded the agreement would:

  • see growth in trade in green technologies. This would offset any negative environmental effects such as an increase in waste and use of resources;
  • benefit less energy- and emission-intensive sectors and see a move in production towards cleaner sectors in both the EU and Mexico;
  • not raise energy demand;
  • not lead to a rise in imports of natural resources

Both the EU and Mexico have agreed that the trade deal between them must support existing environmental laws and not lower or dilute them. The agreement prohibits either side from pursuing ‘a race to the bottom'.

Hence, they must not unduly encourage trade and investment by:

  • derogating from environmental laws;
  • not enforcing environmental laws.

The European Commission conducted a Sustainability Impact Assessment (SIA) of the EU-Mexico trade agreement through an independent consultant. The SIA looked in great detail at the potential environmental, social and economic effects of the agreement, gathering and implementing stakeholders' views.

The SIA for EU-Mexico modernised Agreement was prepared between 2017 and 2019, with the final report published in September 2019.

How else will the agreement promote sustainable development?

The updated trade agreement includes commitments on:

  • promoting the sustainable management of fisheries and forests;
  • conserving biodiversity;
  • combating the illegal wildlife trade.

Further, the EU and Mexico pledge to:

  • cooperate on environmental and workers' rights issues that have a link to trade;
  • put into practice all the Multilateral Environmental Agreements that they have signed, including the Paris climate accord.

The EU and Mexico have also agreed to promote various other initiatives, such as encouraging companies to:

  • respect the environment and workers' rights;
  • disclose where they buy the inputs to make their products;
  • promote fair trade and trade in environmentally friendly products like sustainably produced cocoa and coffee;
  • promote energy efficiency and the use of climate-friendly technologies;
  • engage in recycling practices.

The EU and Mexico will initiate a review process of the Trade and Sustainable Development aspects of the agreement, as soon as the trade agreement comes into force, with a clear timeframe for delivery.

Will the chapter on sustainable development be enforceable?

Yes. The agreement promotes sustainable development through legally binding commitments on labour rights, environmental protection, climate change and responsible business conduct (TSD Chapter).

While the suspension of trade preferences is not foreseen, these commitments are binding and subject to a specific dispute settlement procedure. Civil society organisations are also granted an essential role in implementing and monitoring the full Agreement.

The agreement's chapter on sustainable development covers issues such as:

  • workers' rights;
  • the environment;
  • climate change.

The commitments set out in the chapter will be enforceable through a dispute settlement mechanism that includes:

  • external review by an independent panel of experts;
  • a role for civil society, including representatives of employers and trade unions, at all stages;
  • expertise of international bodies such as the International Labour Organization.

Does the agreement contain a reference to the precautionary principle?

Yes, the precautionary principle is enshrined in the agreement: in Article 6.7 on Risk Assessment of the Sanitary and Phytosanitary (SPS) Chapter, and in Article 11 of the Sustainable Development chapter. The precautionary principle, allows the EU to act decisively to protect the environment, citizens' health and life.

Regarding SPS, this means that the EU can:

  • Regulate when scientific evidence-for example, on food safety-is inconclusive;
  • Keep an up-to-date and modern food safety, and animal and plant health system;
  • Intervene, if necessary, to immediately regulate on potential harmful animals, plants, and their products.

The precautionary principle is also enshrined in the EU treaties and EU trade agreements must respect those treaties, and it ensures that.

The EU ensures that all its trade agreements:

  • fully respect the right to regulate on the basis of the precautionary principle;
  • are in line with the EU's existing food safety regulations and other 'secondary legislation' which includes the precautionary principle.

How will the agreement affect public services in Europe?

The agreement will not affect public services.

No EU trade agreement forces governments to privatise or deregulate any public service at national or local level. The EU–Mexico agreement is no different.

EU governments will still be able to nationalise any privately provided services, in line with national and EU laws – for instance on conditions for ending a contract early or for paying compensation for expropriation.

EU trade agreements do not affect any country's ability to regulate and set rules regarding its own services markets but rather try to stop governments from discriminating between service suppliers solely because of their nationality.

The EU-Mexico agreement will not change which rules suppliers – foreign or domestic – have to meet, in order to:

  • protect people's health and safety;
  • organise education systems;
  • distribute water;
  • protect the environment.

Some EU Members States have chosen to allow non-EU service providers to provide private education and health services. Others have specifically barred them.

Whatever a Member State decides, neither the trade agreement with Mexico nor the Lisbon Treaty limits:

  • EU Member States' ability to regulate or provide services of general interest such as energy and water;
  • the EU's ability to regulate such services in a non-discriminatory manner.

How will the agreement safeguard governments' right to regulate in the public interest?

The agreement will not affect the right of the EU or Mexico:

  • to regulate to protect public health, the environment or workers
  • to provide public services.

No EU trade agreement forces governments to privatise or deregulate any public service at national or local level. The EU–Mexico agreement is no different.

The agreement will enable the EU and Mexico to work together on some regulatory issues – on a voluntary basis.

Cooperation will only apply to general EU laws or those that affect trade or investment. It will not include EU Member States' laws.

Who decided to launch negotiations for an update of the trade agreement with Mexico?

The EU's Member States decided to launch the negotiations, asking the European Commission to engage in discussions with Mexico.

The Council of the European Union approved the ‘negotiating directives' – often referred to as the ‘mandate' – to replace the 2000 EU-Mexico Agreement with an updated agreement.

The governments of the EU's Member States instructed the European Commission to negotiate on behalf of the EU. The ‘mandate' – a series of guidelines – set out the objectives.

How much control did elected governments and MEPs have during the negotiations?

The European Commission negotiates on behalf of the EU in line with the guidelines given to it by the governments of EU Member States.

The Commission has always ensured that the negotiation process is accountable to EU Member States and to the European Parliament.

The EU's Trade Commissioner, and the Commission's negotiators:

  • work together with EU Member States to prepare the negotiations and negotiating texts;
  • report back to the Member States meeting in the Council on how the negotiations are going;
  • keep the European Parliament updated of developments;
  • appear before the European Parliament's International Trade Committee.

During the negotiations between 2016 and 2025, the Commission engaged in discussions with EU Member States and held 47 meetings with the European Parliament's International Trade Committee (INTA).

The European Parliament has also set up a special Monitoring Group to follow the negotiations.

How did the Commission make sure that everyone could follow what was happening in the talks?

Throughout the negotiations the Commission has regularly met, informed and shared information with:

  • EU Member State governments;
  • the European Parliament;
  • civil society organisations.

On its website the Commission has published:

The Commission also:

  • holds press conferences with journalists;
  • holds citizens dialogues in EU Member States.

How did the Commission ensure that it listened to everyone with a stake in the agreement?

The Commission regularly reports back to the governments of EU Member States and keeps the European Parliament informed of progress in the negotiations.

The European Commission also held numerous meetings with many representatives of the more than 460 civil society organisations registered with its ongoing dialogue on trade policy. These EU-based, not-for-profit groups include:

  • trade unions;
  • consumer bodies;
  • employers' federations;
  • business federations;
  • farming organisations;
  • environmental organisations;
  • animal welfare organisations;
  • faith-based groups;
  • think tanks;
  • community-based groups.

These meetings enable a wide range of bodies to make their views heard and to comment on the negotiations. At the meetings, the Commission informs and updates civil society on the negotiations and listens to their views.

In 2015, the European Commission issued new guidelines for transparency. Since then, the Commission has made public all new negotiating papers tabled in trade talks.

The European Commission's doors are open. So, any organisation interested in the talks can meet officials to put forward their views and opinions.

What happens now that the negotiations have finished?

Following the conclusion of the negotiations, the Commission will finalise the legal revision and translations of the agreed text before submitting the agreement to the co-legislators for their scrutiny.



Read also:

January 17, 2025Negotiators conclude on modernised Global Agreement with Mexico ec.europa.eu (Evropská komise)
December 13, 2024Questions and answers on the new EU Air Safety List ec.europa.eu (Evropská komise)
December 06, 2024Questions and answers on the EU-Mercosur partnership agreement ec.europa.eu (Evropská komise)


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