EU and Mexico seal comprehensive deal to bolster trade ties
The European Union and Mexico have reached an agreement to extend their free trade agreement. This development comes just a few days before Donald Trump's return to the White House in Washington.
As Reuters noted, both parties have been trying for several years to update their trade agreement from the year 2000, which currently covers only industrial goods, by including services, public procurement, investments, and agricultural products.
Negotiators from the EU and Mexico reached a preliminary agreement in 2018 and, in 2020, agreed to grant reciprocal market access in public procurement tenders.
Duty-free trade
As a result of the new arrangements, nearly all trade in goods will be duty-free, including agricultural products such as Mexican chicken and asparagus, as well as European dairy products.
The agreement, for instance, aims to reduce Mexican tariffs on cheeses like Gorgonzola to 20% and seeks to increase pork exports from the EU to Mexico.
According to Reuters, it will also enable Mexican companies to bid for government contracts in Europe, and EU companies for contracts in Mexico, including at the state level.
Mexico, seeking to reduce its dependence on the United States, stated that the agreement would provide it with better access to products such as orange juice, tuna, asparagus, honey, and a "easier access" to meat products.
