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Trade relations between the EU and Mexico are governed by the trade pillar of the EU-Mexico Economic Partnership, Political Coordination and Cooperation Agreement (also referred to as the 'Global Agreement'). By 2020, bilateral trade had more than tripled in the 20 years since the Global Agreement entered into force.
In 2016, the EU and Mexico decided to modernise the EU-Mexico Global Agreement in a comprehensive and ambitious manner. The two sides reached an ‘agreement in principle’ on the trade part of the modernised EU-Mexico Global Agreement in April 2018. They concluded the final technical details on public procurement in April 2020. The EU-Mexico Agreement is undergoing the necessary internal procedures on both sides, culminating in the signature and conclusion of the Agreement.
- In 2020, the EU was Mexico's second-biggest export market after the US. The EU's key imports from Mexico are machinery and appliances, transport equipment, optical/photographic instruments, and mineral products.
- The EU was Mexico's third-largest source of imports in 2020, after the US and China. Key EU exports to Mexico include machinery and appliances, chemical products, transport equipment, and base metals.
- In services, EU imports from Mexico are dominated by travel and transport services. EU services exports to Mexico consist mainly of business services, transport services, travel services, and telecommunications, computer and information services.
- As for foreign direct investment, the EU is the second largest investor in Mexico after the US.
The EU and Mexico
Modernising the EU-Mexico Global Agreement
In 1997, Mexico became the first country in Latin America to sign an Economic Partnership, Political Coordination and Cooperation Agreement (Global Agreement) with the EU.
This Agreement came into force in 2000 and covers political dialogue, trade relations and cooperation. The Global Agreement’s trade provisions later developed into a comprehensive Free Trade Agreement, covering trade in goods and trade in services. These provisions came into force in October 2000 and 2001, respectively.
During the EU-Community of Latin American and Caribbean States Summit of 2013, leaders decided to explore the options for a comprehensive update of the Global Agreement.
Negotiations with Mexico started in May 2016. The two sides reached an agreement in principle on the trade part in April 2018, complemented by commitments on public procurement in April 2020.
The European Commission hired an independent consultant to carry out a Sustainability Impact Assessment (SIA) to analyse the social, environmental and economic impacts of the new agreement with Mexico. The Commission’s response to the SIA’s findings and recommendations are in this Position Paper.
The agreement, once ratified, will replace the existing EU-Mexico Global Agreement.
This modernisation will bring the trade and investment framework into the 21st Century on a basis of reciprocity and promote new opportunities for business, while including strong and clear commitments on human rights, sustainable development and the fight against corruption.
Committees and Dialogues
The EU and Mexico meet regularly to discuss issues and best practices and oversee the proper functioning of the Agreement.
Trading with Mexico
This year, the EU and Mexico celebrate the 20th anniversary of the entry into force of their Economic Partnership, Political Coordination and Cooperation Agreement, known as the Global Agreement.
The European Union and Mexico concluded today the last outstanding element of the negotiation of their new trade agreement.
The European Union and Mexico today reached a new agreement on trade, part of a broader, modernised EU-Mexico Global Agreement.