Villarreal – Malmstroem – Photo EC
(BRUSSELS) – Mexico and the European Union hailed a new page in the history of EU-Mexico relations Monday as trade and investment talks began between the two commercial partners.
The aim of the talks is to modernise and broaden the scope of the existing ‘global agreement’ from 1997 to mirror other new agreements that the EU and Mexico have since negotiated with other partners. The meeting has established a roadmap for reaching an agreement that unlocks the full potential of EU-Mexico trade and investment relations.
This first round of talks is planned to end by mid-June, says the EU’s Trade Commissioner Cecilia Malmstroem: “We want to broaden the scope of the agreement and deepen the level of mutual openness to boost our growth, make our firms more competitive, create new and better jobs, and widen choice for consumers.”
With changes in global trade patterns since the existing agreement, signed more than 15 years ago, the focus will be on cutting customs tariffs and offering companies new opportunities to provide services, participate in public tenders or invest. The relation between trade, sustainable development and human rights will also be addressed.
Mexico is one of the 10 strategic partners of the EU. It was one of the first countries with which the European Communities established diplomatic relations over 50 years ago and the first country in Latin America to sign an agreement for an economic partnership, political coordination and cooperation with the EU. In addition to the political dialogue and cooperation, the so called ‘Global Agreement’ provided for liberalisation of trade in goods, as well as some services and public procurement openings.
The EU-Mexico free trade agreement contributed to strong growth in bilateral trade and investment between the EU and Mexico. The EU-Mexico trade in goods has almost tripled since the EU-Mexico FTA came into force, reaching EUR 53 billion a year. The EU is now Mexico’s third trading partner (8% of foreign trade) after the US (67% of foreign trade) and China (9%), while Mexico is the EU’s fifteenth biggest trading partner.
Two-way investment relations are strong with EU investment stocks in Mexico reaching EUR 119 billion in 2014 and Mexico having investment stocks of EUR 28 billion in the EU.
In addition to the strong bilateral trade relations, the EU and Mexico cooperate in various international fora, including the G20 and the Organisation for Economic Co-operation and Development (OECD).
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