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Mexico

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.

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See how the EU-Mexico trade agreement benefits companies and communities across the EU

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Better Regulation Agenda

Modernisation of the trade pillar of the EU-Mexico global agreement

Trade picture

  • 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

Trade in goods 2014-2016, € billions
Year EU imports EU exports Balance
2014 18.0 28.4 10.4
2015 19.5 33.6 14.1
2016 19.8 33.9 14.1

EU-Mexico: Trade in services

Trade in services 2013-2015, € billions
Year EU imports EU exports Balance
2013 3.7 7.9 4.2
2014 4.0 8.3 4.3
2015 5.0 9.4 4.4

EU-Mexico: Foreign direct investment

Foreign direct investment 2015, € billions
Year Inward stocks Outward stocks Balance
2015 35.4 161.6 126.3

Date of retrieval: 15/02/2017

More statistics on Mexico

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.

EU negotiating text proposals

Any additional textual proposals that will be sent to Mexico in the future will be made public shortly thereafter.

Trading with Mexico