Mexico, EU Update Trade Deal After Nearly a Decade of Talks

Mexico and the European Union (EU) have finalized a landmark agreement to modernize their trade framework, concluding nearly a decade of negotiations. This updated pact revises the original deal signed in 2000, aiming to eliminate tariff and non-tariff barriers, enhance trade, and boost investment between Mexico and the EU’s 27 member countries.

Key provisions of the modernized trade agreement:

• Expanded Market Access: Tariffs on a wide range of products, including agricultural and industrial goods, as well as services, will be eliminated, allowing businesses on both sides to expand their market reach.

• Geographical Indications Protection: European products like Parmesan cheese and Champagne will receive recognition and protection in Mexico, ensuring their authenticity and quality standards.

• Trade Facilitation: Streamlined customs procedures will reduce costs and simplify trade processes for businesses.

• Regulatory Cooperation: A framework for regulatory alignment will facilitate easier and more secure market access for companies operating between the two regions.

The International Monetary Fund (IMF) has revised Mexico’s economic growth forecasts upward, citing the anticipated benefits of the modernized trade pact as a key factor.