TLCUEM: the Elimination of Tariffs between Mexico and the European Union

There is a significant novelty between the European Union and Mexico that if you don't know about it, it would be good if you found out. In Mexico, it is known by its acronym TLCUEM and it is the new trade agreement that was announced on April 21, 2018 that replaces the one of 2000 and that will be responsible for the elimination of tariffs between Mexico and the European Union.

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If you did not attend the webinar of the Delegation of the European Union in Mexico, "Connecting Europe, how to export to the European Union?" of February 25, 2019, it is worth seeing as it explains the procedure and the use of various tools available to all interested.

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The treaty

The XXVI Meeting of the European Union-Mexico Joint Parliamentary Commission that took place between February 7 and 9 in CDMX has ended, where, among other topics, the political, economic and social situation in Mexico and the region was analyzed and they examined the trade prospects within the framework of the Global Agreement, security and human rights. According to MEP Teresa Jiménez Becerril, the Free Trade Agreement with the European Union could be signed until May, as soon as the issue of public procurement that remains on the table is resolved.

With the previous agreement, the European Union had become the third commercial partner of Mexico while our country became the second Latin American commercial partner of the Union, after Brazil. With 400,000 places of employment generated in the EU as a result of this commercial exchange, the agreement could definitely be declared successful on the European side. If you look at the increased trade between the two regions that reached a staggering 148% in the 17 years between 2000 and 2017, the success could be considered mutual.

Within this period of time, there were important changes such as the adaptation of the euro as the single currency and 13 new member countries, on the part of the European Union. The entry of Mexico into the Organization for Economic Cooperation and Development (OECD), which is considered a “rich man's club”, was the important change that happened on the Mexican side.

One of the main points that the Free Trade Agreement with the European Union or the European Union-Mexico Global Agreement touches, as it is known in Europe, has to do with agri-food products, alcoholic beverages and liquors that cannot leave us yawning. that we have interests with food and / or commerce and we are based in one of the two entities.

The agreement aims to achieve simplified access to the Mexican market and the elimination of tariffs for European products such as cheeses, chocolate and various food preparations. On the other hand, we want to facilitate the access of Mexican products to European markets belonging to the union. These products are important and numerous and include tuna, honey, fruit juices, agave syrup, fruits and vegetables, and beef, as long as the latter is in accordance with European standards.

Obviously, the focus is on the clarification of the participation to the tenders of the partner countries, the abbreviated access of electronic commerce, telecommunications, transport, financial services and the establishment of an authority system to solve problems that arise between the State and the investor. This last point highlights the need to shed light on and integrate an effective fight against corruption and money laundering.

Two of the most important rights that are discussed are that of the environment and that of work. It seeks to promote fair free trade that will provide advantages to all participating countries, consumers, companies and workers.

Mexico hopes to achieve:

•a greater magnification of the product and service market

•a greater strength, strengthening the protection of the participating economies, guaranteeing Mexican brand names, protecting Mexican products and ensuring the recognition of the country's crafts

•the modernization, facilitating access of SMEs to international trade, promoting resource efficiency and taking care of bioversity, as well as establishing an Anti-Corruption chapter

For the agreement to enter into force, the ministers responsible for trade in each EU member country have to vote on it, then it has to be approved by the 751 deputies of the European Parliament and finally, it has to be ratified by the parliaments nationals of EU member countries. On the Mexican side, the Senate will be in charge of approving the agreement to enter into force in 2020.

We in chilesymaiz.comWe believe that this agreement is of utmost importance for these two great regions of the world that have had little commercial contact with each other in recent centuries. We think that for the people of our country who live in Europe, this agreement means big changes in the way they do business with Mexico. Undoubtedly, many products to which there is currently little access, will be easier to obtain and as much of the treaty refers to agri-food products, there will be great changes that we hope will affect us positively.

Of course, we will have our eyes open to inform you of any progress and / or delay that affects the TLCUEM and the expected elimination of tariffs on a large series of products. If you have any questions, information or annotation to add, please leave your comment. Any contribution is important and will be welcome.

Sources:

• https://trade.ec.europa.eu/doclib/press/index.cfm?id=1831
• https://www.cefp.gob.mx/publicaciones/boleco/2018/becefp0222018.pdf

* The image on the cover of this article is a modification of an image of the Mexican flag from "Google Flags"