Posted By Global Banking and Finance Review
Posted on January 17, 2025
BRUSSELS (Reuters) - The European Union and Mexico reignited a stalled upgrade to their free trade deal on Friday, just days before the return to office of U.S. President-elect Donald Trump, who has threatened both sides with tariffs.
The two parties are seeking to update their trade accord from 2000, which only covers industrial goods, by adding services, government procurement, investment and farm produce.
EU and Mexican negotiators reached an initial deal in 2018, and agreed in 2020 to grant reciprocal market access to each other's tenders for public contracts.
Under the terms agreed in 2020, practically all trade in goods will be duty-free, including for farm products such as Mexican chicken and asparagus and European dairy produce.
The deal would, for example, also cut Mexican tariffs of up to 20% on cheeses such as gorgonzola and increase EU pork exports, the Commission has said.
It will also allow Mexican companies to bid for government contracts in Europe and EU companies for those in Mexico, including at state level.
Mexico, which wants to reduce its reliance on the United States, has said the deal would grant it better access for products including orange juice, tuna, asparagus, honey, egg white albumin, as well as "equitable access" for meat products.
It is also set to recognise "geographical indications" for certain food and drink, a key EU demand such as specifying that only cheese from a particular part of Italy can be called Parmigiano Reggiano.
(Reporting by Philip Blenkinsop; Editing by Alison Williams)
