EU leaders were in Mexico yesterday where they signed a new trade deal with the Mexican government with the EU-Mexico Modernised Global Agreement and Interim Agreement on Trade (ITA). The agreements will remove tariffs on most EU products going to Mexico.
Most Tariffs on Mexican products will also be phased out but certain exceptions will remain to protect specific industries such as an import quota on beef which was also applied in the Mercosur Agreement.
Previous tariffs on many EU products to Mexico including agri-products had 20-100% duties. The new deal ensures the removal of tariffs on a wide range of EU products including transportation, pharmaceuticals and food.
The EU will also be investing up to €5 billion in projects in Mexico related to its digital and infrastructural connectivity plan called the Global Gateway.
EU Council President Antonio Costa said that this new trade deal forms part of the EU’s process of creating a multi-polarity of trading partners including India, Australia, Mercosur, Indonesia, Chile, South Africa, Thailand and, Mexico. However, he added that this is not just a trade deal but also a testament to the EU’s international commitment to an international rules-based-order and free trade. The EU is currently on an internal streak with big trade agreements enabling further free trade across multiple continents and large economies.
The EU and Mexico have also agreed to cooperate on strategic matters, environmental issues, trans-national crime and also academic exchanges. EU High Representative Kaja Kallas also held a meeting with Minister for Security and Civilian Protection Omar H Garcia Harfuch and discussed security and policing matters.
Joint statement can be found here. EU press release here. Press conference can be found here.
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