MEXICO CITY: ALeaders from the EU and Mexico confirmed that they would be launching negotiations to update their “Global Agreement,” aiming to start the talks for revamping the economic, political, and cooperation pact by year’s end.
The news came following a highly-anticipated bilateral summit – the first one between the two sides since 2012 – which brought together European Commission President Jean-Claude Juncker, European Council President Donald Tusk, and Mexican President Enrique Peña Nieto.
In a joint statement released on 12 June following the Brussels meeting, the three leaders confirmed that a modernisation of the Global Agreement would be their “main bilateral priority” in the short term.
Among the various reasons for such a move, the three leaders said, was the fast-changing global trade landscape, including the proliferation of new regional trade agreements.
“We want to see our relationship reach its full strategic potential,” Tusk told reporters after the summit.
“This modernised agreement will be a stronger foundation for taking our partnership forward because it will be far more ambitious and comprehensive,” the Council chief continued, adding that leaders are eyeing both increased political cooperation and trade.
Years in the making
The move to launch negotiations comes two years after leaders agreed to explore the possibility of revamping the existing Global Agreement, setting up a bilateral working group tasked with reviewing possible ways forward.
EU Trade Commissioner Cecilia Malmström and the Mexican Secretary of Economy Ildefonso Guajardo Villarreal then expressed last month their intention to upgrade the trade deal, with the 12 June leaders’ summit raised as a key event toward the eventual launch of negotiations. (See Bridges Weekly 13 May 2015)
Peña Nieto confirmed last week that Brussels and Mexico City have now concluded a Joint Vision Report that will set the scope of the proposed negotiations. The document had not yet been publicly released as Bridges went to press.
Juncker, for his part, said that the upcoming meeting of the EU’s General Affairs Council on 23 June, is expected to provide the Commission with the mandate needed on its side to begin the talks.
Deeper ties, new trade deals
Upgrading their existing trade deal, leaders said, would be key to ensuring more prosperity and improved wellbeing for their 626 million citizens.
Furthermore, they said, upgrading their bilateral legal framework would help Brussels and Mexico City reinforce the potential of their 2009 Strategic Partnership. The two sides adopted their joint executive plan for this partnership in 2010, outlining a series of concrete actions and initiatives aimed at enhancing dialogue on political, security, environmental, and socio-economic issues.
Other areas which leaders flagged as having potential in an updated bilateral agreement included boosting their investment and their bilateral trade in goods and services, currently surpassing a billion euros per week. The leaders also expressed their aim to create the most comprehensive trade and investment framework possible.
Since the Global Agreement first entered into force 15 years ago, EU-Mexico trade has nearly tripled, hitting US$65 billion in 2014. The 28-nation bloc accounts for eight percent of Mexico’s total foreign trade, according to a fact sheet released ahead of last week’s summit.
Meanwhile, those same 15 years have also seen a plethora of new trade initiatives emerge, often covering new disciplines that have not traditionally been covered in trade agreements. These planned trade agreements have been cited by officials on both sides as reason for ensuring that Brussels and Mexico City take steps to update the terms of their current relationship in order for it to remain relevant.
Both sides have already been active players in these new trade projects: while Mexico is currently involved in finalising a Trans-Pacific Partnership (TPP) Agreement together with 11 other countries, the EU is in its third year of negotiations for a Transatlantic Trade and Investment Partnership (TTIP) with the US.
The EU also concluded negotiations last year with Canada for a wide-ranging bilateral trade deal, which is currently awaiting ratification.
ICTSD reporting; “EU, Mexico to overhaul trade deal in light of Canada, US Talks,” EUROPE ONLINE, 16 June 2015; “EU, Mexico agree to ‘modernise’ free trade deal,” AFP, 12 June 2015.
