EU and Mexico expand trade agreement ahead of Trump's return
The European Union and Mexico have agreed to expand their free trade agreement, just a few days before Donald Trump returns to the White House in Washington.
As reported by Reuters, both parties have been trying for several years to update their 2000 trade agreement, which currently covers only industrial goods, by adding services, public procurement, investments, and agricultural products.
EU and Mexican negotiators reached a preliminary agreement in 2018 and agreed in 2020 to grant mutual market access in public procurement tenders.
Tariff-free trade
As a result of the new arrangements, practically all trade in goods will be tariff-free, including agricultural products such as Mexican chicken and asparagus, as well as European dairy products.
The agreement aims to reduce Mexican tariffs on cheeses like gorgonzola to 20% and increase pork exports from the EU to Mexico.
According to Reuters, it will also allow Mexican companies to bid on government contracts in Europe, and EU firms on contracts in Mexico, including those at the state level.
Mexico, looking to reduce its dependency on the United States, stated that the agreement would provide better access to products like orange juice, tuna, asparagus, honey, as well as "easier access" to meat products.
