European Union and Mexico make free trade area deal

Frederick Owens
April 24, 2018

"This deal is very positive for our agri-food sector, creating new export opportunities for our high-quality food and drink products, which in turn will create support more jobs and growth, particularly in rural areas".

Officials also say the agreement opens the door for companies in the European Union or Mexico to bid for government contracts overseas. This updated deal seeks to include a wide range of sectors, with agricultural exports from the European Union set to benefit the most.

Additionally, products which will no longer be subject to duties include chocolate, on which tariffs are now up to 30%, and pasta, on which tariffs are now up to 20%.

The agreement will make it much easier for European Union exporters to sell their products in Mexico and save up to €100m a year in customs duties.

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Mexico has thus entered a list that includes Canada, Japan and Singapore, Juncker recalled. Malmstrom noted that the agreement outlines basic rules to fight corruption, while praising the negotiations that led to "a deal fit for the economic and political challenges of the 21st century".

Total EU-Mexico trade in 2017 amounted to €62bn billion for goods and €15bn billion for services (2016).

Since the deal was first signed in 2000, trade between the EU and Mexico has risen at a yearly rate of around 8 percent per year, resulting in an overall increase of 148 percent over that period, according to the European Commission.

Ireland is a significant exporter to Mexico of powdered milk and milk derivatives, the removal of tariffs "should boost this trade significantly", Minister Breen said.

Other reports by LeisureTravelAid

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