- Country or region
- Mexico
- Trade topics
- Negotiations and agreements
Enhancing trade and investment in critical raw materials
A secure and sustainable supply of critical raw materials is at the core of the EU’s competitiveness, including as part of our green and digital transitions. It is also vital for increased EU economic security and defence capabilities.
While the European Critical Raw Materials Act aims at ensuring a diverse, secure, and sustainable supply of critical raw materials for the EU's industry, the EU continues to rely on their imports.
The EU's Global agreement with Mexico will be instrumental, since Mexico is a producer of several of these materials, and it does so in a safe and sustainable manner.
Mexico is a main resource for EU sourcing of fluorspar (33%)* a substance used in the steel, iron and aluminium supply chain, as well as in the refrigeration sector. Mexico has also several other raw materials endowments (antimony, copper, zinc, lead).
* Source: Study on the Critical Raw Materials for the EU 2023 - Final Report (europa.eu)
A deal with mutual benefits on critical raw materials
The new agreement maintains tariff-free trade of critical raw materials, securing cheaper access and reduced costs for these materials essential for the EU’s green and digital transitions. Moreover, the new agreement will:
Ensure secure and predictable supply chains
- Prohibition of dual pricing, i.e. differentiation between domestic and export prices to the EU;
- Transparency and predictability in case of domestic pricing regulation;
- Diversification of sourcing, enhancing the resilience of supply chains;
- No minimum pricing or other pricing requirements;
- No export taxes;
- No export monopolies, that could limit export volumes or set up higher prices;
- No non-automatic import licensing requirements.
Open new investment opportunities
- EU firms will have a right of establishment and face no discrimination when investing in Mexico.
Put sustainability at the heart of critical raw materials trade and investment
The highest sustainability standards will be respected through:
- Establishing a dedicated trade and sustainable development chapter;
- Promoting corporate social responsibility standards;
- Helping the dissemination of international instruments for the responsible management of supply chains;
- Maintaining companies' obligations to comply with relevant environmental and labour legislation in the country concerned.