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Mexico and Europe Seek New Trade Pact To Strengthen Ties

31 May, 2015

Mexico and the European Union have announced they are working to establish a new free trade agreement this year,following news that Europe is seeking to tie its economy more closely with North America following a new deal with Canada and renewed efforts to sign an agreement with the United States. 

“Building on a pact with Mexico from 2000,the European Union hopes to create a transatlantic free trade zone and help set the global rules of commerce before China does,” writes Reuters. “Mexico is jumping ahead of Brazil,whose talks towards a similar deal with the European Union have stalled.”

According to reports,representatives from the EU Trade Commission have indicated they are willing to commit to a “highly ambitious deal” that will be defined in greater detail following the upcoming EU-Latin American summit in Brussels next month,where Mexican President Enrique Pena Nieto is expected to appear. Although reaching a final deal could take some time,it would improve the existing EU-Mexico accord,which is outdated because it was signed when the global economy was far less integrated and online commerce was first emerging as a viable form of capital inflow.

“The European Union is Mexico’s second-largest trading partner after the United States,and Mexico is a top destination for EU exports after the United States and Canada,” writes Reuters 

As part of a new type of trade deal that goes beyond tariffs,the new pact is more comprehensive and will further open up a number of markets in services and allow businesses to bid for public tenders in each participating nation. The new deal with the EU would also permit Mexico to join the ranks of other Latin American Pacific economies,including Chile,Columbia and Peru,which have already signed updated modern trade deals with the European Union and the United States.

“Along with Columbia,Chile and Peru,we are sending a signal of fresh air that we are the countries of free traders,” stated Mexico’s Economy Minister Ildefonso Guajardo. “We are responsible for more than half of Latin America’s exports to the world.”

Mexico is currently also included in the Asia Pacific Free Trade Agreement and The Trans-Pacific Partnership,which is part of a larger effort to link the U.S. economy with fast-growing markets like Mexico throughout the Pacific.

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