During the visit of European Trade Commissioner Cecilia Malmström to Mexico on Monday 8 May, the EU and Mexico agreed to accelerate the pace of their negotiations for modernising the EU-Mexico comprehensive agreement that has been in force since 2000. They thus agreed to hold technical level meetings every month in the second half of this year, with the aim of reaching an agreement in principle by the end of 2017.
"Both sides are committed to concluding these negotiations before the end of the year. This is an ambitious but feasible goal. We want to send a clear signal to the world about the importance of strengthening – not weakening – the rules that govern international trade", Malmström said at a press conference following a meeting with Mexico's Economy Minister Ildefonso Guajardo.
"We have also agreed to accelerate the pace of negotiations even further, increasing the frequency of our negotiators' meetings", Malmström added.
After the fourth round of talks, in Mexico on 26-30 June, the Commission negotiators and those from the Mexican administration will meet "every month".
In 2015, the EU and Mexico decided to review the outlines of their comprehensive agreement in order to integrate new subjects into it (environmental protection, workers' rights, intellectual property and investments).
Launched in May 2016, the talks have progressed after three rounds of negotiations (the last being in Brussels on 3-7 April), and the two parties confirmed their desire to finalise an agreement in principle by the end of 2017 (see EUROPE 11764).
The protectionist threats of US President Donald Trump against Mexico (setting up an import tax and the USA's departure from the North American Free Trade Agreement – NAFTA) have contributed to the acceleration of these talks.
"Today more than ever, the strategy of diversification is being transformed into an obligation. It is becoming important to send a clear message that we will not stay paralysed in the face of the challenge that awaits us with the renegotiation of NAFTA with Washington", Guajardo stated.
"We want to do trade. We are giving this signal that we are ready and we want to build bridges, not walls", Malmström said.
However, the road to a comprehensive agreement 2.0 between the EU and Mexico is still long, given the many European offensive interests in agriculture and public procurement.
The EU also wants to include strong amendments on sustainable development in the agreement, and a mechanism for settling investment disputes based on the new Investment Court System (ICS) provided for in its free trade agreement with Canada.
In addition, the EU wants to include 'anti-corruption' arrangements in the wider framework of the comprehensive agreement, and arrangements on political coordination and cooperation.
The EU has recorded a surplus of €14.1 billion for its trade in goods with Mexico (€33.9 billion in exports, €19.8 billion in imports) and of €4.4 billion for trade in services. In 2015, its foreign direct investment stock in Mexico stood at €161.6 billion and that of Mexico in the EU stood at €35.4 billion). (Original version in French by Emmanuel Hagry)