Mexico and the European Union have updated a trade agreement signed in 1997, by establishing a new trade deal that would eliminate most tariffs on the goods and services traded between Mexico and EU members. The trade agreement reduces the tariffs imposed on European food and drinks, allows EU companies to sell more of their services in Mexico, and protects worker’s rights and the environment.
What New Trade Opportunities Can the FTA Bring?
The new deal will bring many opportunities to the agriculture market and benefit the countries’ farmers. Mexico secured liberalized access for its orange juice, fruits, and vegetables. The EU will have duty-free access for most pork products, pasta, and chocolate and confectionery. Total EU-Mexico trade for goods in 2017 was 62 billion euro and 15 billion euro for services. The EU manufactured exports to Mexico are worth 38 billion euros and 10 billion worth of exports in services. It is estimated that this deal will save EU exports 100 million euro in customs duties every year and would open the doors to foreign direct investment.
Want to Learn More About Mexican Import/Export Opportunities?
Free trade agreements can bring many new opportunities for countries, but it can sometimes be complicated to trade in Latin American countries. At Biz Latin Hub, we have a team of local and professionals trade lawyers who have the knowledge of doing business in Latin America and offer commercial representation services to help you with the complexity and challenges that may arise in the Latin American market. Please contact Craig Dempsey at [email protected] and see how we can help you!