In April 2018, the EU and Mexico reached an „agreement in principle“ on the trade side of a modernised global agreement between the EU and Mexico. The initial Association Agreement brought many trade benefits to the EU and Mexico, although some trade barriers remain. The Free Trade Agreement between Mexico and the European Union (EU-MX FTA) is a trade agreement between the European Union and Mexico. Signed on 12 December 1997 in the city of Brussels as the „Economic Partnership, Political Coordination and Cooperation Agreement between the Mexican United States and the European Community and its members.“ The agreement came into force on 1 October 2000 and the tax on a large quantity of import goods was abolished or reduced. The European Union and Mexico have reached an „agreement in principle“ on the main trade parties of a new eu-Mexico association agreement. The new agreement replaces a previous agreement between the EU and Mexico in 2000. Trade Statistics and Trade Agreement Details The trade agreement monitored an increase in trade in agricultural products, industrial products, oil and gas and other raw materials from about $290 billion in 1993 to more than $1.1 billion. Until 2016. The NAFT has significantly increased the GDP rates of the three countries concerned since 1994. Agricultural trade is the responsibility of three bilateral agricultural agreements negotiated between the State of EFTA (Iceland, Norway and Switzerland) and Mexico. These agreements are part of the instruments for creating the free trade area and are governed by the disciplines applicable to trade in goods in the main agreement. They provide for significant concessions on both sides, taking into account the respective sensitivities. Each agreement contains specific rules of origin, usually based on „fully preserved“ criteria.
The rules of origin of industrial goods (Annex I) relating to the definition of the concept of native products and methods of administrative cooperation are based on the current European model and retain the general structure and content of standard European rules. The specific list rules (Appendix 1 of Appendix I) of the annex are based on the EU-Mexico framework, adapted to the specific needs and requirements of the EFTA states and Mexico, taking into account trade flows between the parties. In 2018, Mexico and the European Union reached an „agreement in principle“ to update their trade agreement, which replaces the 2000 EU-Mexico economic partnership. The new agreement allows EU companies to sell more services to Mexico and commits to protecting workers` rights and the environment. This partnership recognizes an „extended economic zone“ characterized by reduced tariffs and preferential treatment of local markets in the production of goods and services for export to Mexico. In 2017, two agreements were added to update legislation on origin and customs legislation requiring producers and exporters to issue certificates of origin for the export of goods. The free trade agreement covers trade in industrial products, fish and seafood. One of the objectives of the agreement is the phasing out of tariffs.
It covers not only trade in goods, but also covers trade in services, investment and public procurement in its scope. The two countries reassessed the agreement in 2010 and acknowledged that bilateral trade between the two countries has increased by 133% since 1999. At the time, countries agreed to „redouble their efforts to take full advantage of their benefits,“ focusing on areas such as biotechnology and support for small and medium-sized enterprises.