Mexico and European Union Join Forces in Potential Free Trade Deal
Español Given the uncertainty that exists in Mexico regarding the future of the North American Free Trade Agreement (NAFTA), the government there is working hard to diversify itself commercially by approaching different potential allies, the European Union among them.
Mexico has been worried about US President Donald Trump’s new tax reform bill, which could damage Mexico’s commercial relationship with the country. A deal with the European Union would alleviate some of the tensions that arise from relying too much on a relationship with the United States.
Officials in Mexico are reportedly working on closing a trade agreement before Christmas, thereby solving questions surrounding whether the country would recognize the European Union’s protections on gourmet foods.
Mexico’s Secretary of Economy Ildefonso Guajardo held a series of meetings in Brussels with the European Commissioner for Agriculture, Phil Hogan, and said that he expects that negotiations will reach a “positive result” very soon.
The benefits that this agreement would create benefit both sides, based on the basic agreement that the EU has had with Mexico since 2000, which covers both machinery and automobiles. A new agreement could free up trade in sectors such as finance, electronic commerce and agriculture.
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On Monday, December 18, Guajardo met with Jyrky Katainen, Vice President of the Commission appointed by the EU. This Tuesday, they had talks to see if the negotiations are advancing according to the expected time frame.
This would be the most important trade agreement for Mexico after NAFTA, as it opens doors to a variety of countries looking to grow and diversify.