President Claudia Sheinbaum and Ursula von der Leyen signed the modernization of the Global Agreement between Mexico and the European Union today.
The signing took place on May 22 at Palacio Nacional. The new text deepens agricultural and food liberalization, opens federal public procurement to European suppliers on reciprocal terms, includes a digital trade chapter, strengthens geographical indications and raises environmental and labor standards. It also eliminates tariffs that in some cases reached 100 percent.
The agreement creates a permanent Investment Dispute Settlement Tribunal to resolve disputes between investors and the state. COMCE estimates that bilateral trade, close to 89 billion dollars, could grow up to 35 percent in the next five years.
The signing closes a negotiating cycle that began in 2016. However, the Provisional Trade Agreement requires ratification by the European Parliament and the Mexican Senate, while the political and cooperation pillar needs approval from the 27 national European parliaments, a process that typically takes between 18 and 36 months.
