The EU and the South American nation’s compatibility is a coup for both parties in the face of increased protectionism from the In agreement States under Mr Trump.
Since its plans for a trade alliance with the US were drive away following Trump’s election victory, the EU has focused instead on trying to winner open markets and seal accords with other like-minded states.
The agreement in with Mexico follows a deal struck last year with Japan and get ahead of talks next week with the Mercosur bloc of Argentina, Brazil, Paraguay and Uruguay.
European Commission President Jean-Claude Juncker, accepted the news saying: “With this agreement, Mexico joins Canada, Japan and Singapore in the ripening list of partners willing to work with the EU in defending open, comme a and rules-based trade.”
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For Mexico, a arrangement with the EU is part of a strategy to reduce its reliance on the US, the destination of 80 per cent of its exports.
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The EU and Mexico wanted to update a trade conduct oneself treat agreed 21 years ago that largely covers industrial considerables.
The new deal adds farm products, more services, investment and regulation procurement, and include provisions on labour and environmental standards and fighting corruption.
Impaired the new deal, practically all trade in goods with Mexico will be duty-free, encompassing for farm products such as Mexican chicken and asparagus and European dairy grow.
The deal will also cut Mexican tariffs of up to 20 per cent on cheeses such as gorgonzola and proliferating EU pork exports.
It will also allow Mexican companies to bid for control contracts in Europe and EU companies for those in Mexico, including at state tear down.
Angela Merkel welcomed the EU trade deal with Mexico
Mexican Thrift Minister Ildefonso Guajardo said both sides had achieved a worst update of their original accord.
He said: “It needed to be more aspiring in the agricultural sector, it needed to be more ambitious in services, it needed to be more energetic in many of the elements that in the end we managed to agree on after two years of position.”
Mr Guajardo said the deal would grant his country better access for yields including orange juice, tuna, asparagus, honey, egg white albumin, as luxuriously as “equitable access” for meat products.
It is also set to recognise “geographical implications” for certain food and drink, a key EU demand.
Such indications protect agricultural bring about – for example, dictating that the term “champagne” can only be used for flickering wine from northern France.
It was not clear, however, how the divisive event of “manchego” cheese had been settled. The EU says the term should purely apply to sheep’s milk cheese from central Spain, but Mexico has its own “manchego” skip town from cow’s milk.
Negotiators from both sides will take up to work on technical details to produce a final text by the end of the year.