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April 26, 2018
Mexico and the European Union agree on terms of new trade agreement
The European Union (EU) and Mexico announced that they reached a new agreement on trade, part of a broader, modernised EU-Mexico Global Agreement. Practically all trade in goods between the EU and Mexico will become duty-free, including in the agricultural sector.
Since the previous EU-Mexico trade agreement came into force in 2000, trade between the EU and Mexico has risen at a rate of around 8% per year, resulting in an overall increase of 148% in trade in goods over the period. However, there was still a wide margin for improving the trade relationship that the new agreement is addressing, by making virtually all trade in goods duty-free.
The new agreement will bring in new rules on customs procedures to simplify and speed up paperwork and physical checks at Mexican customs.
The agreement is also a big step forward in giving companies mutual access to government contracts in both the EU and Mexico public procurement markets.EU and Mexican companies will be placed on an equal footing, irrespective of whether they present a bid in Mexico or in the EU.
This week's agreement in principle includes the most important elements of the agreement. In some chapters, technical details still need to be tied up. Based on the agreement in principle announced this week, negotiators from both sides will continue their work to resolve the remaining technical issues and finalise the full legal text by the end of the year.
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