by Karen Faulkner, Worthy News Correspondent
(Worthy News) – The EU and Mexico agreed to a new free-trade deal Tuesday after four years of negotiations, the Financial Times reported. The deal provides that almost all trade between Mexico and the EU bloc will be duty-free.
The new deal will replace the existing EU-Mexico Global Agreement that came into force in 2000. Trade-in goods between the EU and Mexico are now worth around $71 billion: more than three times its worth in 2000, the Financial Times states.
According to the European Commission website, the new deal will “scrap high Mexican tariffs on European food and drinks, allow EU firms to sell more services to Mexico and pledge to protect workers’ rights and the environment.” The Financial Times reports that, among other matters, the deal also includes measures to fight corruption and money laundering.
Reuters reported that for Mexico the new deal is part of an effort to reduce its dependence on the US. For the EU, the deal adds to trade agreements reached with a number of countries, including Japan and Brazil, at a time when there are tensions between the European bloc and the US.
The EU is Mexico’s third-biggest trading partner, after the US and Canada. Mexico is the EU’s top trading partner in South America. Concerning their relationship going forward, and in light of the COVID-19 outbreak, European Trade Commissioner Phil Hogan said in a statement: “Openness, partnerships, and cooperation will be even more essential as we rebuild our economies after this pandemic.”
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