EU and Mexico expand trade pact ahead of Trump's return
The European Union and Mexico have agreed to expand their free trade agreement. This change comes just a few days before Donald Trump is set to return to the White House in Washington.
As Reuters has reported, both parties have been attempting for several years to update their 2000 trade agreement, which currently covers only industrial goods. The goal is to include services, public procurement, investments, and agricultural products.
EU and Mexican negotiators reached a preliminary agreement in 2018 and concurred in 2020 to allow mutual market access in public procurement tenders.
Duty-free trade
Under the new arrangements, nearly all trade in goods will be duty-free, encompassing agricultural products such as Mexican chicken and asparagus, along with European dairy products.
The agreement aims to reduce Mexican tariffs on cheeses like Gorgonzola to 20% and boost EU pork exports to Mexico.
According to Reuters, it will also enable Mexican companies to bid on government contracts in Europe, and EU companies on contracts in Mexico, even at the state level.
Mexico, seeking to lessen its dependence on the United States, stated that the agreement would provide better access to products such as orange juice, tuna, asparagus, and honey, along with "easier access" to meat products.
