International Agreements in Progress: Modernisation of the trade pillar of the EU-Mexico Global Agreement

02-10-2020

On 21 April 2018, the EU and Mexico reached an agreement in principle on a modernised trade pillar of the EU-Mexico Economic Partnership, Political Coordination and Cooperation Agreement, also known as the Global Agreement, in force since 2000. On 28 April 2020, negotiations were formally concluded after the only outstanding item – EU access to sub federal public procurement contracts in Mexico – was agreed upon. The trade pillar of the Global Agreement was the first trade liberalisation agreement the EU concluded with a Latin American country. It has contributed to a significant increase in EU Mexico trade in services and industrial goods. However, it has become outdated, as both parties have entered into a wide range of preferential trade agreements with state-of-the-art provisions reflecting new developments in trade and investment policies. Removing non-tariff barriers to trade, and further liberalising trade in agricultural goods would allow the EU and Mexico to enhance their competitive edge in each other's markets. After the trade pillar's legal scrutiny and translation, it will become part of a three-pronged Global Agreement that will also contain revamped political dialogue and cooperation pillars and will be signed by the Council of the EU and its Mexican counterpart. The new Global Agreement will subsequently be submitted to the European Parliament for its consent. Second edition of a briefing originally drafted by Roderick Harte. The 'International Agreements in Progress' briefings are updated at key stages throughout the process, from initial discussions through to ratification.

On 21 April 2018, the EU and Mexico reached an agreement in principle on a modernised trade pillar of the EU-Mexico Economic Partnership, Political Coordination and Cooperation Agreement, also known as the Global Agreement, in force since 2000. On 28 April 2020, negotiations were formally concluded after the only outstanding item – EU access to sub federal public procurement contracts in Mexico – was agreed upon. The trade pillar of the Global Agreement was the first trade liberalisation agreement the EU concluded with a Latin American country. It has contributed to a significant increase in EU Mexico trade in services and industrial goods. However, it has become outdated, as both parties have entered into a wide range of preferential trade agreements with state-of-the-art provisions reflecting new developments in trade and investment policies. Removing non-tariff barriers to trade, and further liberalising trade in agricultural goods would allow the EU and Mexico to enhance their competitive edge in each other's markets. After the trade pillar's legal scrutiny and translation, it will become part of a three-pronged Global Agreement that will also contain revamped political dialogue and cooperation pillars and will be signed by the Council of the EU and its Mexican counterpart. The new Global Agreement will subsequently be submitted to the European Parliament for its consent. Second edition of a briefing originally drafted by Roderick Harte. The 'International Agreements in Progress' briefings are updated at key stages throughout the process, from initial discussions through to ratification.