Both sides are finalizing the legal revision of the text of the modernized agreement. After translation into all EU languages, it will be forwarded to the EU Member States and the European Parliament for signature and closure. The European Union and Mexico have reached an “agreement in principle” on the main trade elements of a new Association Agreement BETWEEN the EU and Mexico. The new agreement replaces a previous EU-Mexico agreement of 2000. On April 28, 2020, in the midst of the C-19 global health crisis, a new trade agreement was reached between the European Union (EU) and Mexico, the number one. Business partners in Latin America, was announced. It contains a chapter on investment protection among its central elements. Mexico would be the first Latin American country to sign a treaty with Europe that includes this dimension. Small exporters themselves are disproportionately affected by smaller barriers, as they do not have the time or resources to overcome them. That is why the EU wants it to have its own chapter in the agreement.
The EU wants the deal: on 28 April 2020, the EU and Mexico concluded the final outstanding element of the negotiations on their new trade agreement, namely the exact extent of the reciprocal opening of procurement to public procurement at sub-central level. The Interim Agreement, which was to enter into force until the entry into force of the Comprehensive Agreement, was approved by the Mexican Senate on 23 April 1998. The part of this agreement was approved by the European Parliament on 13 May 1998 and the parties exchanged instruments of ratification on 30 June 1998, which allowed the entry into force of the Interim Agreement on trade and trade-related matters on 1 July 1998. The Free Trade Agreement between Mexico and the European Union (FTA EU-MX) is a trade agreement between the European Union and Mexico. It was signed in Brussels on 8 December 1997 under the name “Economic Partnership, Political Coordination and Cooperation Agreement between the United Mexican States and the European Community and its members”. The agreement entered into force on 1 October 2000, and taxes levied on a large quantity of importing goods were abolished or reduced. “The new type of commitments signed by the EU and Mexico ensures stability and credibility on which investors and exporters can reliably base their long-term investment and distribution decisions,” said De Bièvre. “There is political and legal certainty – an asset that is now very rare in the United States. For Mexico, this type of stable and deep trade relationship with one of the three main players in international trade policy, the EU, is an important insurance policy.
Given that agriculture accounts for just over one percent of the EU`s GDP, the threat posed by Mexican products outside agricultural environments cannot cause much suffering. Instead, companies and wealthy people might be more interested in the terms of the deal, which facilitate investment in any market, by removing the number of companies that can carry out a given economic activity. Changes in food standards may make headlines, but new investment criteria will determine where real money will land.