With the modernization of the Mexico-EU Global Agreement we are building, on the basis of the Mexico-EU Global Agreement (in force since 2000), a more solid platform for dialogue and cooperation, fully consistent with the respective recent developments of our societies and economies, as well as with global trends, challenges and opportunities.
The main benefits of the modernized Global Agreement:
- It is an ambitious, innovative and comprehensive instrument; it fosters a people-centered approach and provides a strong legal framework for enhanced political dialogue, more effective development cooperation and, on the basis of mutual benefit and complementarity, strengthened trade and investment.
- Structures a more systematic and results-oriented political dialogue up to the Summit level, reinforces the existing bilateral inter-parliamentary dialogue and decisively incorporates the participation and contributions of civil society.
- Supports the strengthening of high-level bilateral sectoral dialogues and cooperation mechanisms in areas such as multilateralism, human rights, gender equality and the empowerment of women, migration, the rule of law, culture, education, scientific and technological innovation, the digital agenda, sustainable development, social inclusion and international cooperation for peace and security.
- Optimize our cooperation tools for development and will serve to establish innovative triangular and regional cooperation schemes with the concurrence of the public and private sectors.
- Regarding trade and investment:
Market access: Provides a much broader and mutually beneficial access to the Mexican and European markets, with greater access to the market for agro-industrial products. The modernized Agreement extends liberalization, already guaranteed for industrial products in the previous Agreement, to 86% of agricultural and fishery products. The agricultural sector is expected to experience the highest rates of increase in Mexico's exports to the European Union.
Rules of origin. Approximately 55% of the Specific Rules of Origin were made more flexible to include the new production processes of Mexican and European industries and maintain the competitiveness of production companies in industries such as automotive, aeronautics and chemicals, among other strategic sectors.
Trade facilitation: Trade facilitation measures are included in areas such as sanitary and phytosanitary regulations, competition and general regulation, and dispute resolution.
Advanced disciplines: Among other relevant disciplines, these include more updated trade facilitation measures, adequate sanitary and phytosanitary security regulations, competition, and dispute resolution.
Services. It incorporates adequate measures to facilitate delivery services, telecommunications, maritime services and access to ports and port services, financial services, the temporary movement of company personnel, and digital commerce.
Geographical indications: The Agreement includes protection as geographical indications for 20 emblematic agricultural products of Mexico. Protection was also obtained for 6 spirits and recognition, for future protection, of 19 of the most important Mexican crafts. The EU was granted protection for 320 of its products.
SMEs: It includes a pioneering commitment to support small and medium-sized enterprises, the core of which lies in the development and maintenance of an internet site with relevant information to make it easier for this type of company to benefit from the general opportunities it offers. the modernized Global Agreement.
Anti-corruption: This is the first EU Agreement with a third country that includes a chapter on anti-corruption that aims to prevent corruption in trade and investment through the promotion of integrity in the private and public sectors, the improvement of internal controls, external auditing and financial information, as well as the strengthening of the fight against corruption through compliance with the provisions included in various international instruments, in particular the United Nations Convention against Corruption.
Public bidding (government purchases): Market access coverage is expanded and includes the possibility for companies to participate in government bids issued by a greater number of public entities at the federal level, including goods, services, public works and, for the first time for Mexico, public-private partnership projects. Likewise, the possibility of participation in tenders at the sub-federal level is opened.
Investment protection: For the first time in Mexico, a tribunal for the solution of disputes between investors and the Parties is included, made up of two instances and permanent arbitrators. With this mechanism the protection of foreign investments is guaranteed and their certainty is strengthened. This mechanism will replace the bilateral agreements for the promotion and reciprocal protection of investments currently in force between Mexico and various European countries and will be applicable to all EU Member States. The EU is the second source of investment flows in Mexico, with 186 billion dollars of direct investment accumulated until 2020 (a third of the FDI in Mexico).
Trade and sustainable development: The Agreement seeks to improve the integration of sustainable development in the trade and investment aspects of the relationship between Mexico and the EU, including the implementation of the international commitments of Mexico and the EU in the fight against climate change, mainly those established in the United Nations Framework Convention on Climate Change and in the Paris Agreement, and includes provisions on respect for labor rights, transparency, animal welfare and antimicrobial resistance, sustainable management of supply chains and the sustainable use of biological diversity.
In summary, the modernized Mexico-EU Global Agreement will lead to a stronger strategic partnership between Mexico and the European Union, with tangible benefits for our societies and the world in general