Modernisation of the trade pillar of the EU-Mexico Global Agreement [International Agreements in Progress]

Written by Gisela Grieger,

On 21 April 2018, the EU and Mexico reached an agreement in principle on a modernised trade pillar of the EU-Mexico Economic Partnership, Political Coordination and Cooperation Agreement, also known as the Global Agreement, in force since 2000. On 28 April 2020, negotiations were formally concluded after the only outstanding item – EU access to sub‑federal public procurement contracts in Mexico – was agreed upon.

The trade pillar of the Global Agreement was the first trade liberalisation agreement the EU concluded with a Latin American country. It has contributed to a significant increase in EU‑Mexico trade in services and industrial goods. However, it has become outdated, as both parties have entered into a wide range of preferential trade agreements with state-of-the-art provisions reflecting new developments in trade and investment policies. Removing non-tariff barriers to trade, and further liberalising trade in agricultural goods would allow the EU and Mexico to enhance their competitive edge in each other’s markets.

After the trade pillar’s legal scrutiny and translation, it will become part of a three-pronged Global Agreement that will also contain revamped political dialogue and cooperation pillars and will be signed by the Council of the EU and its Mexican counterpart. The new Global Agreement will subsequently be submitted to the European Parliament for its consent.

Read the complete briefing on ‘Modernisation of the trade pillar of the EU-Mexico Global Agreement‘ on the Think Tank pages of the European Parliament.

Map of Mexico with economic indicators

Structure of EU-Mexico trade in agricultural goods (€, billions)

Structure of EU trade in services with Mexico (€, billion)