Eu Mexico Investment Agreement

On 28 April 2020, Mexico and the European Union concluded negotiations on modernising the trade pillar of the agreement. This was the last outstanding element of their new trade agreement. But not everyone is happy with the new agreement. The national cattle and meat association interbev warned that the agreement risked opening up the European market to “20,000 tonnes of Mexican beef”, which had previously been banned. Critics have also focused on food security issues, which appear to be all the more relevant in the supply chain due to the disruptions caused by the COVID 19 pandemic. Protectionism and self-sufficiency are back in fashion. The new TRADE agreement BETWEEN the EU and Mexico is part of a broader global agreement to prevent and combat corruption. Nevertheless, parties reaching an agreement should be allowed to feel at least one moment of pride for the culmination of their efforts. This is probably the current feeling of the EU and Mexico, after four years of negotiations, when they concluded a new trade agreement in April. The agreement makes almost all goods exchanged between the two parties duty-free, but that does not mean that all differences of opinion have been put to bed. In 1997, the EU and Mexico signed an agreement on economic partnership, political coordination and cooperation. It included a part of the trade, which mainly opened up the trade in goods.

This trade agreement came into force in 2000. The part of the Trade in Services Agreement came into force in 2001. Nearly two decades later, it is time to update the agreement. The EU and Mexico already have a lot to do: the trade agreement is part of the new comprehensive EU-Mexico agreement, which will strengthen cooperation and regular high-level meetings between Mexico and the EU in the areas of human rights, security and justice. The benefits for European companies are obvious: they account for 35% of foreign direct investment (FDI) in Mexico. But for the Latin American country, which is already one of the six most prosecuted countries in the world (and the third largest in Latin America) by foreign investors before international arbitration tribunals, this chapter could pose a considerable risk. Of the 31 arbitration proceedings it faced at the end of 2019, seven were filed by European companies (five Spanish and two French). The new agreement risks deepening and consolidating the deep asymmetry between business interests and human rights. The eighth round of negotiations took place in Mexico City from 8 to 7 January 2018. The ninth round of negotiations began on 12 February 2018 in Mexico City.

On 21 April 2018, Mexico and the European Union concluded negotiations for a new global agreement. The new agreement includes political, economic and cooperative aspects to strengthen political dialogue, boost trade and investment and strengthen technical and scientific cooperation between the two sides. Given that the agreement between the United States, Mexico – the agreement that replaced Nafta on 1 July – offers less favourable terms than mexico previously enjoyed, the signing of a new agreement with the EU is timely. So there is unrealized potential on both sides for more trade and investment. This unrealized potential means that, in addition, in the new trade agreement, the EU and Mexico commit to implementing all multilateral environmental agreements they have signed, including the Paris Agreement on climate change. The agreement will allow the EU and Mexico to cooperate on certain regulatory issues on a voluntary basis.

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