The European Union and Mexico agreed on Friday to expand trade ties amid a more protectionist approach in the United States under President Donald Trump.
Trade between Mexico and the EU is worth about 100 billion euros, but Brussels says the updated trade deal will further boost this growth.
The EU is Mexico’s third largest trading partner, and Mexico is the EU’s second largest trading partner in Latin America after Brazil.
Brussels said the update to the agreement would make it easier for “like-minded partners” to export and invest in each other’s markets.
– Food and Drinks –
The EU said European farmers would benefit because Mexico is a net importer of food and there are limits on the amount of sensitive goods it can export.
For example, the EU will restrict the import of Mexican beef, allowing an import quota of 5,000 tons and a preferential tariff of 7.5%.
Brussels wants to avoid upsetting farmers following a bitter dispute over a trade deal between the European Union and South America’s Mercosur bloc.
Mexico also agreed to recognize hundreds of food and drink products from specific EU regions, such as Parma ham and Roquefort cheese.
It would reduce tariffs on more products and give duty-free access to pasta, chocolate, potatoes, canned peaches, eggs and certain poultry products.
In exchange, the EU will allow Mexican products such as coffee, fruit, chocolate and agave syrup to enter the EU market.
– Key raw materials –
For Brussels, the update means European companies will have greater access to the Mexican market and can bid for more public contracts.
Brussels said the deal would also mean it would be easier for EU companies to export machinery, medicines and transport equipment.
The EU hopes the deal will mean better supplies of key raw materials from Mexico, already the EU’s top supplier. The deal bans EU importers from paying different prices to Mexican buyers for critical raw materials.
The EU has been working to diversify its supply of key raw materials to reduce its reliance on Chinese elements.
The agreement will facilitate European companies shipping auto parts to Mexico through European certification and recognition of international standards.
But Brussels insists it will not allow Chinese manufacturers to export Chinese-made cars to Europe through Mexico.
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This article was generated from automated news agency feeds without modifications to the text.
