New Era for EU-Mexico Trade

In a monumental vote on Wednesday, the European Parliament approved groundbreaking agreements that significantly enhance political and trade relations between the European Union and Mexico. These agreements, which aim to modernize and expand cooperation, were supported overwhelmingly by the Members of the European Parliament (MEPs), setting a new precedent in EU-Mexico relations.

The newly endorsed EU-Mexico Modernised Global Agreement (MGA) will supersede the existing framework established in 2000. With a strong emphasis on sustainable development, business opportunities, and anti-corruption measures, the MGA was approved by a vote of 479 to 119, with 65 abstentions. An interim trade agreement (iTA), focusing solely on trade-related aspects like customs duties and public procurement access, passed with 474 votes in favor, 131 against, and 60 abstentions. This interim agreement will allow immediate benefits from updated trade arrangements without waiting for the full ratification of the MGA by all EU member states.

Under the new MGA, the EU anticipates a potential 75% increase in total exports of goods and services to Mexico, alongside significant savings in customs duties potentially amounting to €100 million annually. The agreement notably secures nearly complete elimination of existing tariffs, providing substantial benefits to EU agri-food sectors with high tariffs on products like cheese and pork in Mexico currently reaching up to 45%. Furthermore, 568 EU geographical indications will now be protected, safeguarding the authenticity of distinct regional food and drink specialties against imitations.

The strategic partnership also fortifies commitments to democratic principles, the rule of law, and human rights, with enhanced cooperation mechanisms set to bolster judicial independence and combat corruption. This includes unprecedented access for EU firms to public procurement markets in 14 Mexican states, reflecting a significant advance in EU-Mexico economic relations.

With the Parliament’s consent, the EU Council is now poised to formally conclude the MGA, necessitating ratification by all member states and Mexico to fully enforce the agreement. This development marks a significant milestone in strengthening EU-Mexico ties, reflecting a mutual commitment to a rules-based international order and multilateralism.