On Wednesday, MEPs gave their green light to two agreements paving the way for closer political ties and expanded trade between EU and Mexico.
The EU-Mexico modernised global agreement (MGA) will replace the current framework, in place since 2000, promoting new opportunities for business, sustainable development and the fight against corruption. MEPs endorsed the MGA by 479 votes to 119, with 65 abstentions.
The interim trade agreement (iTA), approved by 474 votes to 131, with 60 abstentions, covers the trade parts of the MGA that are an exclusive EU competence (such as customs duties, the protection of EU innovations and traditional products, and access to Mexican public tenders). It will allow for the updated trade arrangements to apply earlier, without waiting for all EU member states to ratify the MGA. The interim trade deal will expire and be replaced by the MGA once it enters fully into force.
Lower tariffs and protection of EU agri-food products
In the resolution accompanying the MGA, adopted by 388 votes to 161, with 120 abstentions, MEPs stress that under the most ambitious scenario, total EU exports of goods and services could increase by 75%, while EU companies could save up to €100 million annually in customs duties. They note that the agreement would remove almost all remaining tariffs, benefitting EU farmers and agri-food exporters, as Mexican tariffs imposed on products such as cheese and pork currently reach up to 45%. They also welcome the fact that 568 EU geographical indications for traditional agri-food products will be protected in Mexico, making it illegal to sell imitations of distinctive EU regional food and drink specialities.
