Mexico and EU announce Free Trade Agreement
The EU and Mexico announced today that they had reached an “agreement in principle” modernizing an existing free trade agreement.
Under the updated terms, practically all trade of goods between the two nations will be duty-free, including agricultural imports.
Both parties agree that the deal sends a strong signal to Trump. Trump launched a renegotiation of NAFTA, or as he refers to it, Mexico’s “Cash Cow”.
While some “technical issues” remained, Brussels said it expected to finalize by the end of the year.
Strong Message to Partners
“Today’s agreement also sends a strong message to other partners that it is possible to modernize existing trade relations when both partners share a clear belief in the merits of openness, and of free and fair trade.”
The pact, modeled on a trade deal between Brussels and Canada, needs to be green-lighted by 28 member states and the European Parliament.
On Wednesday, the EU unveiled plans to fast-track deals with Japan and Singapore, saying it was leading the defense of free trade in the face of US “protectionism”.
Mexico now joins Canada, Japan and Singapore in the growing list of partners in working with the EU in defending open, fair and rules-based trade. The deal also guarantees Mexico easier access to EU agricultural goods including cheeses, milk powder, pork and chocolate.
It will also protect “340 distinctive European foods and drink products in Mexico” from imitation, Brussels said.
The pact also contains provisions to simplify custom proceedings, fight corruption and strengthen the Paris Agreement on climate change.
Since 2000, trade between the EU and Mexico has risen at a yearly rate of around 8% per year. According to the European Commission, resulting in an overall increase of 148 % over that period.
Source: American Free Press
To help you navigate through the complex compliance landscape (and avoid the penalties that can come from non-compliance), Community Customs Brokers’s team of professionals can provide answers to these and many other pressing questions related to doing business in Canada as an Importer/Exporter.