Brussels, 06/09/2001 (Agence Europe) - The European Commissioner for Trade, Pascal Lamy, has stated that the Free Trade Agreement between the EU and Mexico has created a very substantial increase in trade between the EU and Mexico. Mr Lamy pointed to this positive balance of trade during bilateral talks taking place this week in Mexico against the background of the World Trade Organisation meeting.
European statistics illustrate that in 1999-2000, Mexican exports to the EU increased by 60% and European exports by 40% (July - December). Mexican statistics indicate that an average increase of 30% in Mexican exports has been recorded since the entry into force of the agreement on industrial and agricultural trade in July 2000 and March 2001. This contrasts to an increase of 12% for the same period in 1999/2000. In terms of customs issues, Mexican exports of electronic and electrical goods rose by 43%, chemicals and plastics by 22%, fruit and vegetables by 16% and textiles and clothing by 14%. The main products benefiting from the agreement have been pharmaceuticals and chemicals, car engines and cleaning and plastic products. As expected, cars, telecom products and engines have been the main export products to benefit from the agreement. In the agricultural sector, Mexican honey, wines and European spirits have seen strong growth. The Commission indicated that European investments in Mexico constitute 20% of all investments in the country.
The agreement entered into force in July 2000 for industrial and agricultural goods, and in March 2001 for services, intellectual property and investments. In July 2000 the EU got rid of custom duties on 82% of industrial imports from Mexico with Mexico doing likewise for 47% of industrial imports from the EU. Liberalisation should be complete for all Mexican industrial exports by 2003 and European exports by 2007.
Daniel Dultzin, who heads the economic bureau at the Mexican Mission to the EU in Brussels, said that Mexican exports were suffering from the recession in the US. This represented 80% of all Mexican exports. The European market had subsequently become a particularly important market due to the Euro's rise against the US dollar. Mr Dultzin added that the agreement had assured their exporters of stable customs rights and procedures.
At the Joint EU/Mexico Committee meeting in Brussels on 2 October a balance sheet will be drawn up assessing the impact of the agreement and the work achieved by the three technical committees that are already up and running (customs co-operation, technical standards, health and phytosanitary health measures). The Mexican delegation, headed by the Vice President for trade, Luis de la Calles, is expected to use the occasion to call for a speeding up of liberalisation for some products. A number of Mexican ministers are also expected to attend a meeting at the beginning of October to promote trade within the framework of the Free Trade Agreement. This will take place just before the European tour of the Mexican President Vicente Fox planned for 10-20 October.
Commissioner Lamy also used his Mexican visit to emphasise the interest Europeans had for reforming the energy sector. The Mexican Congress will examine this reform by the end of October. The reform intends increasing private investment and access to the petro-chemical and electricity production sectors in Mexico, which remain dominated by the state monopoly.
Commissioner Lamy also called for the creation of a civil society public forum that would contribute to identifying areas for co-operation for consumer groups, the environment and social development. A meeting for business leaders is also planned.