MEXICO – EUROPEAN UNION FREE TRADE AGREEMENT

MEXICO – EUROPEAN UNION FREE TRADE AGREEMENT

It was signed on December 8, 1997, in the city of Brussels, under the designation "Agreement of Economic Partnership, Political Coordination and Cooperation between the United Mexican States and the European Community and its members".

On July 1, 2000 the agreement came into force, emphasizing 3 main objectives:

1. To promote political dialogue
2. To eliminate or reduce taxes by liberalizing preferentially, progressively and reciprocally trade in goods and services.
3. To intensify bilateral cooperation

When the Agreement was signed, The European Union had 15 countries. Currently, EU has 27 countries integrated.

Mexico is the only country in Latin America that is considered a “Strategic Partner” of the European Union and has a Global Agreement. In fact, EU – MX FTA was the first transatlantic agreement which became the first reference point of the European Union for new negotiations with countries of Central and South America in the last ten years.

Since the tariff dismantling agreed in the FTA, the access to the community market has been supported by cooperation schemes that promote trade facilitation for Mexican operators, specifically for Small and Medium-sized Enterprises.

Trade with the European Union

The European Union has been consolidated as the Mexico´s second biggest export market after the USA, Mexico's third largest source of imports after the United States and China and the second largest source of foreign investment.

Mexico is the 25th Trading Partner of the E.U., the 15th Exporting Partner and 4th Importing Partner

Since 2003, 100% of the Mexican industrial goods enter the European Union as Duty-Free.

Currently, almost 80% of agricultural exports from Mexico to the European Union have preferential access and the 60% of agricultural sales from European Union to Mexico receive preferential treatment, the rest is excluded or is regulated by antidumping duties.  

Trade in Goods

The total trade in goods between European Union and Mexico is of 66 billion dollars.

Exports from Mexico to EU: 22.6 billion dollars

Main Imports from Mexico

1. Mineral Products and Fuels (33%)
2. Transportation equipment and automotive parts (18.2%)
3. Machinery (12.7%)
4. Electrical Equipment (10%)
5. Agricultural goods (5.4%)

Main Exports to Mexico

1. Machinery and Electrical Equipment (28.7%)
2. Transportation equipment (14.5%)
3. Chemical Products (14.4%)
4. Mineral Products (11.6%)
5. Agricultural goods (3.3%)

Products that Mexico is among the first 3 suppliers of the European Union

• Natural Honey
• Durum Wheat
• Tequila
• Malta Beer
• Polyvinyl Chloride
• Stainless steel Tubes
• Frozen Octopus
• Orthopedic appliances

Trade in Services

The total trade in services between European Union and Mexico is of 11.4 billion euros

Mexico sells to EU travels, maritime transport, air transport and constructions services.

The EU sells to Mexico maritime transport, air transport and IT Services.

Foreign Direct Investment

The European Union is the second most important source of Foreign Direct Investment, providing 39% of the total FDI in Mexico since 2000.

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