EU, Mexico reach initial agreement on updated free trade deal

Remigio Civitarese
Aprile 22, 2018

The EU and Mexico say they have reached an "agreement in principle" to modernise an existing free trade deal, as the Latin American country faces pressure from protectionist measures threatened by US President Donald Trump. "This trade was worth over €1.7 billion in 2016".

Negotiating teams had begun final discussions in Brussels on Monday, with the deal being modelled on a recently agreed trade deal between Canada and the EU.

"This will contribute to making our trade relationship fit to face the opportunities and challenges of the 21st century", the statement said.

He said: "Ireland is ideally placed to benefit from the removal of tariffs from goods and services to Mexico".

According to the European Commission, the new trade agreement will facilitate customs procedures, benefiting many EU industries, including in sectors like pharmaceuticals, machinery and transport equipment.

"The EU hopes to have the deal with Mexico finalised by the end of the year and is the first EU trade deal that contains an agreement to tackle corruption, very important for businesses hoping to break into a new market".

Ireland is a significant exporter to Mexico of powdered milk and milk derivatives, the removal of tariffs "should boost this trade significantly", Minister Breen said.

Earlier this week, the European Union said it was leading the defence of free trade in the face of USA "protectionism" as it also unveiled plans to fast-track deals with Japan and Singapore.

The EU is also now pursuing agreements with Australia, New Zealand and several Latin American nations.

And it sends a message to President Donald Trump that some of the United States' closest trading partners are moving ahead with deals of their own - potentially leaving U.S. exporters on the losing end in foreign markets.

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