Brussels, 14/05/2002 (Agence Europe) - In Brussels on Monday the EU-Mexico Joint Council endorsed the decision to speed up liberalisation of automobile and pharmaceutical trade. As reported on page 8 of the 9 May edition of EUROPE, this decision scraps Mexican customs duties as from 20 May on a series of chemical and pharmaceutical products and automobile spare parts, along with European customs duties on automobiles, bicycles and mechanical equipment for a total esteemed value of EUR 1.7 billion in bilateral trade, explained the two sides in a joint press release. The Joint Council was unable to take any decision on mutual customs assistance since Mexico first has to solve institutional problems.
At this second meeting of the Joint Council established by the Economic Partnership, Political Co-ordination and Co-operation Agreement, the EU and Mexico noted that bilateral trade had grown by almost 30% in eighteen months. The joint press release explains that "Mexican exports to the EU increased by 44.1%, while European sales to the Mexican market expanded by 23.1%. The trade agreement is also stimulating bilateral direct investment. Currently more than 5,000 companies with European capital are established in Mexico, representing 23% of companies with foreign investment in the country". Neither side made direct reference to the launch of new negotiations on issues not covered by the agreement, like services and specific agricultural products (dairy products, beef and cereals). The Mexican economics minister Luis Ernesto Derbez told reporters that this was an important issue and the negotiations would start up again when the EU was ready. Both sides briefly mentioned bilateral trade problems - the Belgian ecotax that Mexico feels discriminates against its beer exports; obstacles to the import of Mexican tuna; and for the EU, Mexico's interpretation of the stand-still clause for various dairy products.
In terms of co-operation, both sides welcomed the agreement on the Financing Framework Convention, an instrument laying down administrative rules for the practical implementation of co-operation projects in Mexico. They also agreed on the desirability of working towards the signature of sectoral co-operation agreements. The European Commission is applying to the Council for formal authorisation to negotiate an agreement on science and technology whereby Mexican researchers can participate in all areas of the sixth Framework R&D Programme, with a view to signing an agreement before the end of the year. Mexico submitted a proposal for a Memorandum of Understanding on co-operation on the environment and also to exchange information concerning education. External Relations Commissioner Chris Patten pointed out at the Joint Council that it would be necessary to ensure the agreement complemented the Alfa university programme and the new Alba study grants programme. The European Commission explained it would be allocating EUR 2.5 million to a co-operation programme with Mexico in the field of human rights, involving support for the process of harmonising national legislation with international human rights standards by strengthening dialogue between the public authorities and civil society. A forum for dialogue with civil society will be held in Brussels by the end of the year, probably in October.
The first meeting of the EU-Mexico Business Forum that was to take place in Brussels on Tuesday was cancelled due to lack of participants. It will now be held in Mexico in February or March to leave more time for business leaders to arrange to attend (the Brussels meeting had been organised at short notice). The Business Forum is managed by secretariats in Brussels and Mexico and is jointly chaired by Renault (for the EU) and Vitro (for Mexico).
On the political front, the Mexican foreign minister Jorge Castaneda, economics minister Luis Ernesto Derbez, Commissioners Pascal Lamy and Chris Patten and the High Representative for CFSP Javier Solana, discussed the situation in Colombia, Cuba, Venezuela and Peru. Mexico regretted it had not yet been possible to ratify the convention for the International Court that will come into force on 1 July 2002. (The Mexican government has submitted draft legislation to parliament that will be debated before the end of the year.) Mexico asked the EU to be involved in the Puebla Panama Plan for development and infrastructure in the south of Mexico (including Chiapas) and Central American countries. The Mexican economics minister announced that the next WTO ministerial meeting will take place in Cancun in Mexico on 10/14 September 2003.
The next Joint Council meeting will be held in the first half of 2003, while the Joint Committee will discuss trade issues in Mexico City in the first half of October 2002.