The European Union and Mexico in April 2018 reached a new agreement on trade, part of a broader, modernised EU-Mexico Global Agreement. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006. Free Trade Agreement between Mexico and the European Union (FTA EU-MX), is a trade agreement between the European Union and Mexico. La Unión Europea y México llegan a un acuerdo comercial. With this agreement, Mexico joins Canada, Japan and Singapore in the growing list of partners willing to work with the EU in defending open, fair and rules-based trade.” KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. © 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Unless otherwise mentioned “EU” concerns for all indicated years the current European Union of 27 Member States. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. The EU-Mexico Trade Agreement recently concluded on April 28th after four years of negotiations. New EU-Mexico agreement: The Agreement in Principle and its texts. Rules and requirements for trading with Mexico. EU-Mexico Agreement in Principle: Procurement Posted on April 24, 2018 by Jean Heilman Grier On April 21 st , the European Union announced that it had reached an agreement in principle with Mexico on a new trade pact, which upgrades an existing agreement. This Agreement came into force in 2000 and covers political dialogue, trade relations and cooperation. #3 EU-Mexico Association Agreement. You will not receive KPMG subscription messages until you agree to the new policy. Mexico Free Trade Agreement (EU-Mexico FTA). 3. This Agreement came into force in 2000 and covers political dialogue, trade relations and cooperation. According to the EC release, the new EU-Mexico trade agreement is to provide that practically all trade in goods between the EU and Mexico would be duty-free.The agreement includes: Progressive rules on sustainable development, such as a commitment to effectively implementing the Paris climate agreement Twitter Feed. 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. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The EU-Mexico Agreement is undergoing the necessary internal procedures on both sides, culminating in the signature and conclusion of the Agreement. Here’s the deal: what the EU-Mexico trade agreement means for both parties. The EU and Mexico have negotiated an updated free trade agreement, removing tariffs on almost all goods. Economic Partnership Agreements (EPAs) - support development of trade partners from African, Caribbean and Pacific countries 2. The European Commission today announced that the EU and Mexico have concluded the remaining element of negotiation for a new trade agreement. Some of the key new features include: … For the European Union, the Mexico agreements adds to deals struck with Japan and the Mercosur bloc of Argentina, Brazil, Paraguay and Uruguay, while trade tensions with the United States persist. The legal revision of the agreement is now being finalised. As for foreign direct investment, the EU is the second largest investor in Mexico after the US. For quick bites of information, follow our twitter feed @SIA_EUMexico, getting you all of your EU-Mexico GA SIA updates in 150 characters! The last outstanding element was the scope of the opening of their public procurement markets. Get the latest KPMG thought leadership directly to your individual personalized dashboard. EU-Mexico trade in goods has more than tripled since the entry into force of the original agreement in 2001. Since the last time you logged in our privacy statement has been updated. EU-Mexico trade in goods has more than tripled since the entry into force of the original agreement in 2001. All rights reserved. Please note that your account has not been verified - unverified account will be deleted 48 hours after initial registration. Mexico and the European Union (EU) have had a free trade agreement since 2000 and the two benefit from high investment flows.. Our privacy policy has been updated since the last time you logged in. These agreements form part of the instruments establishing the free trade area and are subject to the relevant disciplines for trade in goods in the main agreement. They concluded the final technical details on public procurement in April 2020. On April 21 st, the European Union announced that it had reached an agreement in principle with Mexico on a new trade pact, which upgrades an existing agreement. The European Union and Mexico have negotiated a new agreement on trade, as part of a broader, modernised EU-Mexico Global Agreement. For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. Negotiations and agreements; More information on EU-Mexico trade relations Read the existing impact assessment on the EU-Mexico Global Agreement's trade pillar and other related publications to inform yourself and your contributions. The two sides reached an ‘agreement in principle’ on the trade part of the modernised EU-Mexico Global Agreement in April 2018. The new trade agreement also covers these areas. Decision Nº 1/2010 of the EU-Mexico Joint Committee of 17 September 2010 relating to Annex III to Decision Nº 2/2000 of the EU-Mexico Joint Council concerning the definition of the concept of originating products and methods of administrative cooperation : Full Text of the Agreement : Source:Secretaría de Economía de México; EUR-Lex Free Trade Agreements (FTAs) - enable reciprocal market opening with developed countries and emerging economies by granting preferential access to markets 3. The Free Trade Agreement between the European Union and Mexico (FTA EU-MX) has contributed to reactivate the economic relations between them since they have implemented the global agreement that came into effect in the year 2000 and that has permitted that the economic and trade relations between both parties have strengthened. In services, EU imports from Mexico are dominated by travel and transport services. The Global Agreement’s tra… Trade in agricultural products is covered in three bilateral agricultural agreements negotiated between the respective EFTA State (Iceland, Norway and Switzerland) and Mexico. In 1997, Mexico was the first country in Latin America to sign a partnership agreement with the EU. Mexico will open more procurement to the EU than it has in any other free trade agreement (FTA). The EU and Mexico meet regularly to discuss issues and best practices relating to the implementation of the Trade Decisions under the Global Agreement. Details of the published texts and the Agreement in principle. Newly updated in 2020, the EU-Mexico FTA makes 99% of trade between Mexico and EU nations duty-free. After nearly two years, Mexico and the European Union (EU) have concluded negotiations of a new trade agreement. Joint Committee, special committees and other bodies’ meeting reports, More information about accessibility options, 20 years since the Global Agreement entered into force, Trade defence measures in force in Mexico, the EU's overall political and economic relations  with Mexico. EU-MEXICO TRADE AGREEMENT . Protection of human rights, as well as chapters on political and development cooperation. The EU was Mexico's third-largest source of imports in 2019, after the US and China. Mexico and the European Economic Community (EEC) signed an agreement intending to foster economic and trade relations on 15 July 1975. This new EU-Mexico trade agreement aims to be more wide-ranging and ambitious than its younger predecessor. The agreement in principle struck today brings the EU's trade relationship with Mexico into the modern era, tearing down most of the remaining barriers to trade. The deal could have significant long-term economic implications for both entities . The Commission’s response to the SIA’s findings and recommendations are in this Position Paper. Find out how KPMG's expertise can help you and your company. Putting joint ambitions into practice. Mexico also commits to enter negotiations with its states to open some of their procurement to EU firms by the time the agreement is signed. Mexico has two trade agreements with groups of European nations. Practically all trade in goods between the EU and Mexico will now be duty-free, including in the agricultural sector. Texts of the agreement. Total trade between the EU and Mexico currently stands at a total of € 79 billion. Proudly powered by Weebly. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Once the process is concluded, the agreement will be translated into all EU languages. These provisions came into force in October 2000 and 2001, respectively. For Mexico, it is the second most important such treaty after the North American Free Trade Agreement (NAFTA). 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'). The new EU-Mexico Free Trade Agreement (FTA) is important for Mexico in that it is a part of the country’s strategy to decrease its reliance on commerce with the United States. The facilities given by these trade agreements create a beneficial atmosphere for business relations between European and Mexican businessmen. The EU-Mexico FTA provides each party with guaranteed non-discriminatory access to certain procurement markets of the other. In 1997 Mexico was the first country in Latin America to sign an Economic Partnership, Political Coordination and Cooperation Agreement (Global Agreement) with the EU. The agreement includes: Mexico is the EU's number one trade partner in Latin America. In 2019, the EU was Mexico's second-biggest export market after the US. Practically all trade in goods between the EU and Mexico will now be duty-free, including in the agricultural sector.