<h6><strong>Ane Barcos</strong></h6> <h4><strong>The political negotiations to modernise the EU-Mexico Global Agreement, which began in 2016, concluded this Friday with a telephone conversation between the EU Trade Commissioner, Maroš Šefčovič, and the Secretary of Economy of Mexico, Marcelo Ebrard, which allows for the establishment of an updated framework that strengthens political dialogue, cooperation and economic relations.</strong></h4> The agreement establishes a revised framework to strengthen political dialogue, cooperation and economic relations between both parties, with new economic opportunities, such as the increase in European agri-food exports to Mexico, and incorporates rules related to sustainable development and measures against corruption in the public and private sectors. The objective of the modernisation has been, as explained by the Community Executive itself, to adjust the agreement to international changes and current needs, including elements related to sustainable development, such as social and environmental clauses. The President of the European Commission, Ursula von der Leyen, explained that the agreement seeks to strengthen bilateral relations and generate benefits for both economies, promoting rules-based trade that favors economic development, climate action and sustainability. The agreement is designed to support business competitiveness and facilitate the transition to a lower-carbon economy. It also addresses sustainable development, organized crime, migration and gender equality. <h5><strong>Trade scope of the agreement</strong></h5> In 2023, trade in goods between the EU and Mexico totaled 82 billion euros, while in 2022, the exchange of services totaled 22 billion; the new framework seeks to strengthen this trade flow by simplifying and promoting activities in key sectors such as financial services, transport, e-commerce and telecommunications. It is also expected to improve supply chains for essential raw materials, eliminate non-tariff barriers and guarantee equal conditions for European companies in public contracts in Mexico. Likewise, European investment in Mexico will be encouraged, the digital transition will be promoted and measures will be included to promote recycling and repair of products. In the agri-food sector, the modernized agreement contemplates the elimination of tariffs on products such as cheeses, poultry and pork, pasta, apples, jams, chocolates and wine. It also extends the protection of European products with protected geographical indications, up to a total of 568, and simplifies the procedures to facilitate exports. The new framework includes a chapter on trade and sustainable development that establishes binding commitments on labor rights, environmental protection, climate change and responsible business conduct. These provisions will be subject to a dispute resolution mechanism and will be supervised by civil society organizations. The framework also seeks to strengthen dialogue and cooperation on human rights, democracy, the rule of law, organized crime, drugs and migration. It also promotes multilateralism through participation in international forums such as the UN, the WTO and the G20. <h5><strong>Background of the EU-Mexico relationship</strong></h5> Relations between the EU and Mexico are based on two instruments: the Economic Partnership, Political Coordination and Cooperation Agreement (Global Agreement), signed in 1997 and in force since 2000, and the Strategic Partnership, established in 2008. Mexico was the first Latin American country to sign such an agreement with the EU, making it one of the bloc's ten strategic partners. The Global Agreement includes a Free Trade Agreement (FTA), complemented by Decisions 2/2000 and 2/2001 of the EU-Mexico Joint Council, which have regulated trade relations since their entry into force. During the Spanish Presidency of the EU Council in the second half of 2023, priority was given to advancing agreements with Mexico, Chile and Mercosur. Within this framework, the agreement with Chile was signed on 13 December 2023, while the one with Mexico has required more time to complete. Following the final legal review, the EU and Mexico will move forward with the relevant ratification procedures. The official documents will be published shortly, and this revised framework will replace the one in force since 2000.
