Eu and mexico achieve breakthrough for new trade agreement

Eu and mexico achieve breakthrough for new trade agreement

After months of negotiations, the european union and mexico have reached a breakthrough for a revamped free trade agreement. This was announced by both sides in brussel.

However, details remained to be clarified, it was said in a joint declaration by eu commissioners cecilia malmstrom and phil hogan and mexican economy minister ildefonso guajardo villarreal.

It is about updating a trade agreement that has been in force since 2000. It is to be expanded and modernized. "This will help make our trade relationship ready to meet the opportunities and challenges of the 21st century. The declaration states: "we want to meet the challenges of the twenty-first century.

With the renewed agreement, virtually all goods can be traded duty-free between the EU and mexico, including good agricultural products, according to the EU commission. Simpler customs clearance to benefit european companies, such as the pharmaceutical and mechanical engineering industries. In addition, both sides pledge to fulfill their obligations under the paris climate change agreement. Moreover, it is the first trade agreement that also combats corruption in the private and public sectors, he continued.

"With this agreement, mexico joins canada, japan and singapore on the growing list of partners that want to work with the eu to defend open, fair and rules-based trade," commission president jean-claude juncker said.

In the face of protectionist tones from U.S. President donald trump, both sides had accelerated their negotiations last year. Malmstrom had already said in december that they were close to finalizing the language.

After saturday’s breakthrough, there is obviously still work to be done. "Our negotiators will now continue to work on the remaining technical issues and finalize the entire legal text so that our citizens and businesses can begin reaping the benefits as soon as possible," the statement read.

Trade volume between mexico and the EU was recently around 62 billion US dollars (about 50 billion euros). From 2000 to 2015, around 156 billion U.S. Dollars (127 billion euros) in investment flowed from the EU to mexico. For mexico, the EU is the third-largest trading partner. For the EU, the country is the 15th most important partner.