New EU-Mexico Trade Deal Can Benefit Ireland Says TD

New EU-Mexico Trade Deal Can Benefit Ireland Says TD

New EU-Mexico Trade Deal Can Benefit Ireland Says TD

Mexico and the European Union have agreed a deal to update their free trade agreement that will see the elimination of tariffs on virtually all agricultural products.

The EU and Mexico have reached an initial agreement on a new free trade deal.

In return, Mexico will enjoy liberalised access for its fruits and vegetables, orange juice and agave syrup, among other products.

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Economy Secretary Ildefonso Guajardo, Malmström and EU Agriculture Commissioner Phil Hogan also released a joint statement saying the agreement "will contribute to making our trade relationship fit to face the opportunities and challenges of the 21st century".

Ireland is a significant exporter to Mexico of powdered milk and milk derivatives, the removal of tariffs "should boost this trade significantly", Minister Breen said. The countries expect the deal to be finalized by the end of the year.

The deal also allows for the European Union to "substantially" increase its pork exports to Mexico, with duty-free trade for virtually all pork products. "Our negotiators will now continue their work to resolve the remaining technical issues and finalize the full legal text so that our citizens and enterprises can start reaping its benefits as soon as possible".

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Total EU-Mexico trade in 2017 amounted to €62bn billion for goods and €15bn billion for services (2016).

The EU is Mexico's third biggest trading partner, and Mexico, with 128 million people, is the EU's second biggest trading partner in Latin America after Brazil. It is being interpreted as, in part, an attempt to rile U.S. President Donald Trump, who has expressed reservations about unrestricted trade with Mexico and suggested he will impose tariffs on Mexican imports if corporations outsource American jobs to bring labour costs down.

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