EU gives final approval to modernized EU-Mexico trade agreement

BRUSSELS, July 14 (Xinhua) -- The Council of the European Union said on Tuesday that it had adopted a decision to formally conclude the Interim Agreement on Trade (ITA) between the European Union (EU) and Mexico, completing the EU's internal procedures for the agreement to enter into force.

The agreement was signed on May 22 during the EU-Mexico summit and received the consent of the European Parliament at its plenary session on July 8.

According to the Council, the ITA modernizes the trade pillar of the EU-Mexico Global Agreement and provides an updated framework for trade and investment between the two sides.

The agreement will improve market access by eliminating most remaining customs duties, expanding opportunities for services, investment and public procurement, and reducing barriers to trade.

It will also strengthen the protection of European geographical indications and enhance cooperation in areas including digital trade, intellectual property, customs and trade facilitation, competition and critical raw materials.

The Council said the agreement is expected to benefit more than 45,000 EU companies exporting to Mexico, the vast majority of which are small and medium-sized enterprises.

Irish Minister for Foreign Affairs and Trade Helen McEntee said the modernized trade agreement will strengthen one of the EU's closest partnerships in Latin America, while creating greater opportunities and certainty for businesses and supporting economic growth and employment.

Under the agreement, the ITA will enter into force on the first day of the second month following the date on which the EU and Mexico notify each other that they have completed their respective internal procedures. The Council said Mexico is expected to complete its internal ratification process after the summer.

The ITA will operate as a stand-alone agreement and cease to apply once the full EU-Mexico Modernized Global Agreement enters into force.

The relations between the EU and Mexico are currently governed by the Economic Partnership, Political Coordination and Cooperation Agreement, also known as the Global Agreement, which entered into force in 2000. In 2016, the Council authorized the opening of negotiations to modernize the agreement, and the negotiations were concluded on Jan. 17, 2025. Enditem