On Wednesday 18 October, European Trade Commissioner Cecilia Malmström gave assurances that the European Commission and Mexican government were working on everything in order to finalise, by the end of 2017, an agreement in principle on updating the EU-Mexico global agreement of 2000.
"The sooner the talks are completed, the sooner the benefits can come – though speed should not come at the expense of substance", Malmström stated at a hearing on the EU-Mexico global agreement that was organised by the EPP and ALDE Groups.
"There is still work to do if we want to achieve an agreement of the highest calibre. The chapter on SMEs has already been closed at negotiator level, but we still have 19 working groups to close. The gap to be bridged varies from one chapter to another, but I can guarantee you that both sides are fully committed to this process. We are doing our utmost to converge rapidly", Malmström added, saying there had been "good progress" in the talks.
She stated that the technical level negotiators would meet "almost every 3 weeks till the end of the year" and that alongside this, she was in "close contact" with her Mexican counterpart, Ildefonso Guajardo, "to provide the necessary political impetus".
Despite the clear "success" of the EU-Mexico global agreement that is currently in place (which has enabled bilateral trade to triple since 2001, making the EU Mexico's third biggest trading partner), the two parties want to shape the agreement to adapt to the changes in global trade.
Malmström stated that an updated agreement would enable customs duties in the agricultural sector to be reduced, "which would make food less expensive". It would also enable food approvals for EU-Mexico trade to be accelerated and made more predictable, "without compromising on the high standards we all expect", she said. She also spoke of the gains for both parties from a scheme where geographical indications are protected, and underlined the advantages for typically Mexican drinks, such as Tequila or Mezcal, of being protected on EU territory.
The trade commissioner also highlighted the opportunities that would result from the increased opening of public procurement and investment flows, saying that branches of European companies set up in Mexico, whose foreign direct investment stock in the country is 2 billion pesos, employed over half a million people.
In this context, Malmström defended the European proposal of including in the agreement a chapter on investment protection and dispute settlement between investors and states, based on the Investment Court System (ICS) – a system supported by the EU and provided for in its free trade agreements with Canada and Vietnam.
"The investment court system we propose would be predictable and rules-based. Professional judges and an appeals system will ensure neutrality and fairness. It would offer the transparency and the protection for the public interest that people have come to expect and offer the predictability that investors rely on. Its cost would be a fraction of the extra investment it could attract", she said.
She also underlined the importance the EU places on including a chapter promoting sustainable development in the agreement– and "not a race to the bottom on rights or the environment". "We want this modern agreement to address citizens' concerns, from the respect of human rights, to sound labour and environmental standards", she said, giving assurances that Europeans and Mexicans would bring "new areas of cooperation into the agreement" that have never been inserted in EU trade agreements before.
In addition, Malmström confirmed that the two parties were discussing the inclusion of a chapter on fighting corruption, which would cover transparency, money-laundering, public procurement and customs cooperation, safeguards for protecting public services and the right of states to regulate in the public interest. (Original version in French by Emmanuel Hagry)