The new agreement will replace a previous agreement between the EU and Mexico in 2000. In the years that followed, Colombia and Mexico adapted and expanded the agreement, with additional provisions on market access and rules of origin. As Mexico`s largest exporter, Colombia accounts for more than $3 billion in exports each year. Free trade agreements provide countries with access to different markets and promote global competition. More importantly, free trade agreements can increase a country`s GDP and promote trade opportunities and incentives for attractive costs for companies wishing to start their business. For companies that want to produce in a foreign company like Mexico, free trade agreements offer many advantages. These include removing barriers to trade and ensuring close cooperation between nations on trade in goods and services. Mexico`s high-level free trade agreements are bilateral (two country partnerships) and multilateral (three or more) and include NAFTA, the EU, Japan, the Pacific Alliance (G3) and Central America. As trade develops between nations, renegotiation or withdrawal of certain conditions is commonplace.
Many of Mexico`s most important free trade agreements have been revised, renegotiated and withdrawn, creating a stronger and more beneficial agreement for all partner countries. With a total of 14 Mexican free trade agreements in more than 50 countries, the country has access to more than 60% of the world`s gross domestic product. More broadly, it is not surprising that Mexico`s top ten trading partners receive exports under the terms of thought of at least one of the country`s free trade agreements without China. The agreement provides for effective access to the industrial products market in the form of tariffs and rules of origin. Mexico has gradually liberalized all manufactured products (Annex V). In return, EFTA grants duty-free access to Mexican exports of all industrial products until the agreement comes into force (Annex IV). The CPTPP was signed in March 2018 and ratified by Mexico until December 2018. After ratification by all the countries concerned, the CPTPP will represent a trading bloc covering 495 million consumers and 13.5% of global GDP.
The CPTPP completely eliminates tariffs in all sectors. Once all Member States have ratified the agreement, 99% of tariff lines will be exempt from tariffs among CPTPP participants. The free trade agreement covers trade in industrial products, fish and seafood. One of the objectives of the agreement is the phasing out of tariffs. It covers not only trade in goods, but also covers trade in services, investment and public procurement in its scope. The United States, Mexico and Canada have accepted non-discrimination and transparency obligations in sales and distribution, as well as labelling and certification provisions, to avoid technical barriers to trade in distilled wine and spirits. They agreed to continue to recognize bourbon whiskey, tennessee whiskey, tequila, mezcal and Canadian whiskey as distinctive products. The modernisation of the FREE trade agreement BETWEEN the EU and Mexico began to renegotiate in 2015. Since April 2020, negotiations have been completed with the two nations, which agree on revised terms.
Under the new EU-Mexico agreement, almost all merchandise trade between Mexico and the EU will be tariff-free. Customs procedures will be simpler to boost exports. The new agreement also contains progressive rules on sustainable development, such as a commitment to effectively implement the Paris climate agreement. It is also the first time that the EU has agreed with a Latin American country on investment protection. This trading bloc was created in 2011 by Mexico, Chile, Colombia and Peru and has 55 observer states. It has a total population of 225 million and accounts for 38% of the region`s foreign direct investment.