Countries and regions
The trade relation between the EU and Mexico is governed by the Economic Partnership, Political Coordination and Cooperation Agreement (the Global Agreement), which entered into force in 1997. The agreement included trade provisions that were developed in a comprehensive Free Trade Agreement that entered into force in October 2000. The part related to trade in goods was immediately applied while trade in services followed in 2001.
On 25 May 2016, the EU and Mexico launched the negotiations to modernize the Global Agreement. The trade-related talks are part of wider EU negotiations for an update to the Global Agreement.
See how the EU-Mexico trade agreement benefits companies and communities across the EU
Modernisation of the trade pillar of the EU-Mexico global agreement
- The EU is Mexico's third-largest trading partner after the US and China. Around 8% of Mexico's total trade took place with the EU in 2015.
- EU trade with Mexico accounted for 1.5% of its total trade in 2015, with a total trade surplus of around €14.4 bn. In 2015 the EU was Mexico's second biggest export market after the US.
- The EU was also Mexico's third largest source of imports after the United States and China, with €33.7 bn worth of goods imported in 2015. Key EU exports to Mexico include other machinery, transport equipment, chemical products, and fuels and mining products.
- The EU imported €19.3 bn worth of goods from Mexico in 2015. The EU's key imports from Mexico are fuels and mining products, office and telecommunication equipment, transport equipment, and other machinery.
- In terms of services EU imports from Mexico are dominated by travel services, and transport services. EU services exports to Mexico consist mainly of transport services, and telecommunications, computer and information services.
- The EU is a major investor in Mexico, accounting for €119bn in Foreign Direct Investment (FDI) stocks and €9bn in FDI flows in Mexico, in 2014. Conversely, in the same time period, Mexico accounted for €28 bn in FDI stocks, and €4.7 bn in FDI flows in the EU
EU-Mexico: Trade in goods
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EU-Mexico: Trade in services
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EU-Mexico: Foreign direct investment
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EU and Mexico
The drivers for modernising the EU-Mexico Global Agreement
Since the EU-Mexico Global Agreement was implemented, the European Union has had 13 new Member States, gradually deepened its internal Single Market and launched a single currency. Mexico has become one of the world's most dynamic emerging economies, with Gross Domestic Products (GDP) per capita up almost 20% in real terms since 2000. Beyond the EU-Mexico bilateral relationship, the world has changed immeasurably since the year 2000. In particular, emerging and developing countries' share of world GDP has almost doubled, from 20% in 2000 to 39% in 2014.
The global economy is also much more densely linked. Goods are produced along internationally integrated value chains, which means both trade and foreign direct investment are more important than ever before. Services also play a much more important role, even for companies that produce goods.
Moreover, the nature of bilateral Free Trade Agreements has changed. The kind of trade deals that the European Union and Mexico are negotiating today are very different to what we agreed to in 2000. The recent Agreements remove many more types of barriers, making them more effective at opening markets.
Given that the EU and Mexico are strategic partners since 2008, the legal framework of this partnership should also match this level of ambition.
In this context, during the EU-CELAC Summit of 2013 , in Santiago de Chile, the EU and Mexico agreed to explore the options for a comprehensive update to the Global Agreement. To this end, the EU-Mexico Joint Working Group was established, finalising its work in June 2015. In parallel, the EU carried out an impact assessment which revealed the substantial gains that could be expected through the modernisation of the Global Agreement.
State of play of the EU-Mexico FTA negotiations
The negotiations were launched on 25 May 2016. The first negotiation round took place in June 2016 in Brussels, and a second one in November 2016 in Mexico. The talks are progressing well. There is no formally set deadline for ending the negotiations.
- Joint Press release on the first round of EU-Mexico negotiations of the Global Agreement, Brussels, 14 June 2016.
- Report of the first round of negotiations, Brussels, 13-14 June 2016.
- Report of the second round of negotiations, Mexico, 22-25 November 2016.
EU negotiating text proposals
- Rules of Origin, sent to Mexico in November 2016
- Public Procurement, sent to Mexico in November 2016
- Sanitary and Phytosanitary Measures, sent to Mexico in November 2016
- Energy and Raw Material, sent to Mexico in November 2016
- Intellectual Property Rights, sent to Mexico in November 2016
- SMEs, sent to Mexico in November 2016
Any additional textual proposals that will be sent to Mexico in the future will be made public shortly thereafter.
Trading with Mexico
- Rules and requirements for trading with Mexico
- The EU is present on the ground in Mexico
- Trade relations are part of the EU's overall political and economic relations with Mexico
- Mexico is a member of the World Trade Organisation