In recent weeks, the European Commission has been keen to reassure the other institutions about the scope of two recent developments on its trade agreement in principle with Mexico. Neither the signing of the free trade agreement between Mexico, Canada and the United States, or 'USMCA’, nor President López Obrador coming to power on December 1 will require the agreement to be reopened.
Signed on November 30, the USMCA should not undermine the provisions negotiated in the April 21 agreement in principle between the European Union and Mexico, nor hinder the finalisation of the agreement (see EUROPE 12007). In particular, according to the Commission, the USMCA should not have an impact on the 340 geographical indications safeguarded in the EU/Mexico agreement.
A cover letter from the United States/Mexico mentioning access to their markets, inter alia, for cheeses covered by European geographical indications, had nevertheless raised concerns on the European side, but the Commission is confident that Mexico will honour its commitments to the EU in this regard.
On the other hand, the USMCA could complicate duty-free access to the US market for cars produced in Mexico by European companies.
Another recent development is that the arrival in power on Saturday, December 1, of the new government of Andrés Manuel López Obrador, the candidate of the left party, should not lead to a questioning of the texts that have already been validated.
Discussions between Mexico City and the 32 governors of the country's federal states will thus be able to resume, making it possible to settle the main point of substance still identified as hindering the finalisation of the agreement: the annex on access to sub-federal Mexican public procurement. The EU expects in early 2019 the list of sub-federal entities that will open their public procurement to European companies. (Original version in French by Hermine Donceel)