The European Union and Mexico Modernised Agreement: Why It Matters for Trade in the 21st Century
In April 2020, the European Union (EU) and Mexico announced the completion of negotiations on a new and modernised trade agreement that aims to deepen their economic and commercial ties in the 21st century. The new agreement, which replaces a previous one that has been in place since 2000, covers a wide range of issues such as trade in goods, services, investment, intellectual property, and sustainable development. Here`s what you need to know about the EU-Mexico modernised agreement and its significance for global trade.
Boosting Bilateral Trade and Investment
The EU-Mexico modernised agreement is expected to bring significant benefits for both sides in terms of trade and investment. The EU is Mexico`s third-largest trading partner after the United States and China, accounting for about 7% of its total trade. The new agreement will eliminate most of the remaining tariffs on goods traded between the two sides, including in sectors such as food, agriculture, and industrial products. It will also improve access for European companies to the Mexican market, which is currently growing at a rate of around 2%, and provide greater legal certainty and transparency for investors.
Strengthening Intellectual Property Protection
Intellectual property (IP) protection is a crucial issue for many companies doing business in Mexico. The new agreement includes provisions aimed at improving the protection and enforcement of IP rights, such as trademarks, patents, and copyrights. This will help prevent IP infringement and piracy, which can harm the innovation and competitiveness of companies in both the EU and Mexico. Moreover, the agreement includes a commitment to cooperate on the fight against counterfeiting and piracy, including online piracy, which is increasingly a global problem.
Promoting Sustainable Development
Sustainable development is another important aspect of the EU-Mexico modernised agreement. The two sides have agreed to strengthen their cooperation on environmental protection, labour rights, and social issues. The agreement includes provisions on the protection of biodiversity, natural resources, and ecosystems, as well as the promotion of green growth and the circular economy. It also includes commitments to uphold fundamental labour rights and improve working conditions, such as the elimination of child labour and forced labour. These provisions will help ensure that trade and investment are conducted in a socially responsible and environmentally-friendly manner.
The EU-Mexico modernised agreement is a significant milestone in the economic and commercial relations between the two sides. It will help boost trade and investment, strengthen IP protection, and promote sustainable development. However, the agreement still needs to be approved by both the EU and Mexico`s parliaments before it can enter into force. This is expected to take some time, but once it does, it will provide a solid framework for future cooperation and growth. In a time of increasing protectionism and uncertainty, the EU-Mexico modernised agreement is a positive example of how countries can work together to achieve mutual benefits and promote global trade.