European Union has completed the ratification process for its new trade agreement with Mexico, after the Twenty-Seven gave their final approval. The agreement will enter into force once it has been ratified by the Latin American country, which is expected to complete the process after the summer.
The agreement updates the trade framework in place between the EU and Mexico since 2000 and provides for the elimination of tariffs on 99% of products that were still subject to duties, with particular benefits for agricultural and agri-food trade.
Ratification comes against a backdrop of growing trade tensions with the United States, which has accelerated Brussels’ interest in strengthening ties with strategic partners. “At a time of increasing geopolitical uncertainty, strengthening ties with trusted partners is more important than ever,” said Irish Trade Minister Helen McEntee, whose country currently holds the Presidency of the Council of the EU.
Greater access for European agri-food products
One of the most significant aspects of the agreement is the reduction to 0% of the tariff applied to 13,000 tonnes of pork, 20,000 tonnes of different types of cheese and 13,000 tonnes of dairy preparations from the EU. Until now, these products were subject to a 45% tariff in the Mexican market.
Mexico will also eliminate its high tariffs to allow free access for a range of European agri-food exports. These include pasta, currently subject to tariffs of up to 20%; chocolate and confectionery, with duties of more than 20%; blue cheeses, potatoes, apples and preserved peaches, all of which have faced tariffs of up to 20%.
Other products will also benefit, including eggs, which could be subject to tariffs of up to 45%, and certain economically significant poultry products, with tariffs reaching up to 100%.
Protection for 568 geographical indications
The agreement also strengthens protection for 568 European food and drink products with geographical indications, including Rioja wine, Parma ham and Roquefort cheese.
The aim is to prevent the sale of imitations and reinforce the protection of European products linked to a recognised origin, quality and reputation in international markets.
Benefits for 45,000 European companies
Beyond the agri-food sector, the agreement will improve access for European companies to public procurement in Mexico and help remove trade barriers in areas such as financial services, transport and raw materials.
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According to European Union estimates, the new trade conditions will benefit around 45,000 European companies, most of them SMEs.
This agreement will enter into force two months after Mexico completes its ratification.
The EU seeks new trade partners
The ratification of the agreement with Mexico forms part of the European Union’s strategy to diversify its trade relations and strengthen alliances with markets considered strategic.
Irish minister Helen McEntee said that, during Ireland’s Presidency, the EU would seek to move “quickly” in trade negotiations with other important countries, including Malaysia, the Philippines, Thailand and the United Arab Emirates.
