Mexico concludes negotiations on a modernised Global Agreement with the EU

By Goodrich, Riquelme y Asociados

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, 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 Mexico-EU 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.

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 agreement will create 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; 

-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.

Subject to final legal revision, the EU and Mexico will now proceed with their respective procedures for conclusion and ratification.