This determination has its accounts. While in 1980 the European Union to Mexico supplied 15.2 of entire imports in 1997 they accounted for merely 8.7 and for 1999 reached 9.7 % , while Mexican exports to the trade axis rose from 15.9 % in 1980 merely 4.6 % in 1999, mostly as a consequence of NAFTA step and pacts signed by Mexico with some Latin American states, which gave penchants and advantages over the Europeans in the Mexican market.
Scheme for a new partnership with the states of the EU and Latin America included a figure of different facets: the deepening of the political duologue, spread outing trade cooperation, support for the development of integrating procedures in the part, every bit good as proficient and fiscal cooperation. The development of this scheme was a response to a turning concern about the EU weakened in the early 90 ‘s. It ‘s place in the part. In subsequent old ages, the scheme of the EU with states in the part has expanded. The purpose was to implement its European spouses to offer an option to the North American Hispanic influence on the continent, harmonizing to their demands for variegation of foreign economic dealingss.
General Purpose: Make a commercial infinite in the context of transnational integrating through the constitution of a Free Trade Area for the gap of external development chances.
aˆ? Promote the development of trade in goods and services ;
aˆ? Liberalize preferential, progressive and mutual trade goods and services ;
aˆ? Stimulating trade and economic activity ;
aˆ? Attracting supplies and engineering for the Mexican company ;
aˆ? Generate more occupations ;
aˆ? Promoting direct investing ;
aˆ? Increase chances and strategic partnerships for the Mexican company.
Europeans expect the trade understanding allows them to retrieve their place in the exchange of goods and services to vie with Mexico and on equal footings with the United States and Canada. With this understanding, Mexico EU grants discriminatory intervention in a shorter period than other merchandising spouses, for all industrial merchandises will be exempt from customs responsibilities in 2007, after the exhaustion four phases of progressive liberalisation, where sensitive merchandises sector particular intervention of agribusiness ( cereals, dairy merchandises and beef ) . Obviously, the understanding covers non merely the liberalisation of goods, but besides services, investings and payments, entree to public markets, puting rigorous regulations on competition, rational belongings and difference colony, which will reciprocally profit Mexico and the European Union.
About the Agreement, the European Commission considered that is to the full compatible with the commissariats of the World Trade Organization ( WTO ) , one time this organisation does non authorise the creative activity of a free trade country but covers it cardinal trade between the two spouses, and peculiarly with Article XXIV of the GATT, which is expected to be ratified by all EU Member States and to retrieve its strategic place in the Mexican market. At the same clip, governments in Mexico seeking to diversify their markets and cut down their U.S. trade dependance.
After nine unit of ammunitions of dialogues between Mexico and the European Union that began in July 1998, it was agreed to make a concluding phase with the sign language of the Free Trade Agreement with the European Union which began on November 24, 1999 and stop on July 1, 2000, day of the month on which it believes the understanding will come in into force.
Mexico ‘s chief clients in the European market are Germany, Spain, UK, France, and the Netherlands, to which allocates 83.4 % of Mexican exports and where the construction is composed as follows: automotive merchandises ( 17.2 % ) , oil ( 15.6 % ) , parts and accoutrements for machines to treat informations ( 3 % ) , sugar ( 2.1 % ) , decaffeinated java ( 2.1 % ) and penicillin ( 1.4 % ) . Oil continues to be the chief merchandise exported to the European Union in 1998 accounted for 15.6 % of entire exports. In 1998, imports from the EU amounted to 11,713 million euro and stand for 10.4 % of entire imports.
The figures reported by the General Directorate of Secretariat of Commerce and Industrial Development at the terminal of 1998 totaled 15,532 million euro. Mexican companies with foreign investing portion of which, 3,485 million aˆ‹aˆ‹have equity engagement in any of the EU states European. The sum of FDI received in Mexico during the period 1994-1998 reached 41,232 million euro, from the European Union accounted for 32 % tantamount to 8, 670 million euro in that period.
Is deserving observing that the 2, 615 companies with capital of European beginning are located in Mexico City 942 ( 36 % ) , Mexico State 400 ( 15 % ) , Quintana Roo 216 ( 9 % ) , New York 110 ( 6 % ) , Puebla 106 ( 6.0 % ) , Baja California Sur ( 4 % ) and other provinces ( 22 % ) .
The chief aim of trade dialogues of the Partnership Economic Agreement, is to make a free trade country that complies with the regulations provided by the World Trade Organization ( WTO ) and in peculiar with the commissariats of Article XXIV of GATT, associating to imposts brotherhoods and free trade countries material goods, and Article V of GATT on economic integrating in services.
In NAFTA-EU considers two types of precautions:
Bilateral, which applies to exigency steps taken against rushs of imports and significant duty decreases originating under the Treaty ;
Safeguarding and Global, to be adopted against rushs in imports from the remainder of the universe.
NAFTA-EU represents an of import chance to pull more foreign investing in the states of the European Union, through strategic confederations, technological exchanges and other signifiers of concern association because the expected returns of the undertakings are located in Mexico, addition significantly. So, EU FTA contains commissariats leting Mexico pull more foreign investing from the states of the European Union. However, Mexico maintains its committedness to constitutional commissariats on investing. In Competition Policy were established appropriate steps to forestall deformations or limitations that significantly affect bilateral trade.
For Mexico, the sign language of the FTA with the European Union, supplying easy entree preferentially to the largest market in the universe, consisting 15 developed states with about 376 million people and a GDP of more than 8.3 billion euro. Besides, from the commercial point of position, the European Union is considered the most of import trading power by concentrating over 20 % ( about 2 billion ) of universe trade.
1.1. Chronology of the Treaty
Mexico ‘s dealingss with the European Union have taken several stairss to set up in the undermentioned chronology:
In 1960 he established the Mission of Mexico to the European Economic Community ( EEC ) .
On July 15, 1975, Mexico and the EEC signed the Agreement on Economic and Commercial.
On April 26, 1991, Mexico and the European Union sign the Cooperation Agreement.
On May 2, 1995 is issued Solemn Joint Declaration between Mexico and the EU.
On December 8, 1997 creates two legal instruments between the EU and Mexico.
The Economic Partnership, Political Coordination and Cooperation ;
The Interim Agreement on Trade and Trade Related Issues
After nine unit of ammunitions of dialogues between Mexico and the European Union that began in July 1998, it was agreed to make a concluding phase with the sign language of the Free Trade Agreement with the European Union that starts November 24, 1999.
1.2. General facets of trade between Mexico and the EU
The relevancy of this trade understanding decision is that the European Union is the universe ‘s largest market.
Mexico ‘s chief clients in the European market are Germany, Spain, UK, France, and the Netherlands, to which allocates 83.4 % of Mexican exports and where the construction is composed as follows: automotive merchandises ( 17.2 % ) , oil ( 15.6 % ) , parts and accoutrements machines for processing of informations ( 3 % ) , sugar ( 2.1 % ) , decaffeinated java ( 2.1 % ) and penicillin ( 1.4 % ) .
Germany is besides the taking supplier of Mexico, followed by Italy, France, Spain and the UK, states from which comes a whole 84.3 % of purchases from the European Union. Sing investing, the relationship with the EU is of import because it ‘s the 2nd largest investor in Mexico with 21 % of entire investing received.
1.3. Structure of imports from the EU to Mexico
In 2005, imports from the EU amounted to 25,6 million euro and stand for 10.4 % of entire imports, the chief merchandises are accoutrements for vehicles and other engine parts equivalent to 5.3 % of the sum, the other corresponding to the other machines and mechanical contraptions ( 1.1 % ) , gasolene ( 0.9 % ) , fabricating parts for typewriters and reckoners ( 0.8 % ) , blow casting machines ( 0.8 % ) and textile whirling machines ( 0.7 % ) .
EU-Mexico “ trade in goods ” statistics
Trade in goods 2009-2011, a‚¬ one million millions.
EU-Mexico “ trade in services ” statistics
Trade in services 2008-2010, a‚¬ one million millions.
1.4. Foreign Investment
Harmonizing to figures reported by the General Directorate of Foreign Investment Secofi, at the terminal 1998 was 15,532 million Mexican companies with foreign investing portion of these 3,485 aˆ‹aˆ‹million have equity engagement in any of the states of European Union.
The chief investor is Spain figure of companies involved with 818 ( 23.5 % ) , followed by Germany with 622 ( 17.8 % ) , the United Kingdom with 520 ( 14.9 % ) , the Netherlands with 452 ( 13 % ) , France 424 ( 12.2 % ) , Italy with 333 ( 9.6 % ) and the staying nine members of that block with 316 take parting companies stand foring 9 % .
The chief sectors that are addressed are the European investing services with 35.2 % , the trade with 24.3 % , with 3.1 % building, conveyance and communications 1.4 % , agribusiness with 1.1 % , excavation and quarrying with 1.1 % and electricity by 0.3 % . In the service sector 91.3 % of companies focal points on the subdivisions of professional services, existent estate, eating houses, hotels, travel bureaus, services and banking recognition establishments, fiscal services.
Furthermore it is of import to advert that the 2615 invested companies from Europe are located in Mexico City 942 ( 36 % ) , Mexico State 400 ( 15 % ) , Quintana Roo 216 ( 12 % ) , Jalisco 171 ( 9 % ) , Texas 110 ( 6 % ) , Puebla 106 ( 6.0 % ) , Baja California Sur 80 ( 4 % ) and the remainder of the provinces ( 22 % ) .
EU 27 FDI with Mexico, a‚¬ one million millions
EU 27 stocks of FDI with Mexico, a‚¬ one million millions
On December 8, 1997, it signed the Economic Partnership, Political Coordination and Cooperation Agreement between the European Community and its Member States, on the one manus, and the United Mexican States, on the other, and the Interim Agreement on Trade and Trade issues. The latter, commercial facet of the Global Agreement is the legal instrument which allowed the trade dialogues. So, after few unit of ammunitions of dialogues that began in Mexico, from 9 to 13 November 1998 and concluded in Brussels, Belgium from 21 to 24 November 1999, Mexico and the 15 European Union states were terminated the dialogues for the sign language of a Free Trade Agreement that came into force is expected by 1 of June in 2000.
During this cooperation between two members was covered new countries, such as biotechnology, nanotechnology, information engineering, which is interested in the import of Mexico. During the old ages of the free trade country in the EU has implemented more than 500 undertakings of life, to turn to the societal and human-centered jobs of Mexico. More than 100 million euro has been put in such plans as the protection of refugees, human rights, wellness, environmental.
In such a manner a characteristic of dealingss between the EU and Mexico is a strategic partnership in the model of a planetary understanding in 1997 and the understanding on free trade zone in 2000 These dealingss cover all countries of trade and economic cooperation, human-centered, scientific, proficient, fiscal, and political duologue to as portion of the acme EU – Mexico.
EU understanding with Mexico distinguishes active political cooperation. Twice a twelvemonth, the EU and Mexico holds bilateral acmes in the context of EU summits – Latin America. In the European Parliament there is a liaison commission the EU and Mexico. There are regular audiences on the harm the president of Mexico and by the European Union. European Commission President J.M. Barroso has repeatedly stressed that the EU and Mexico, there are strategic confederations. The scope of issues on which the parties interact highly broad. This is a security job, countering multinational menaces such as drug trafficking, organized offense, illegal weaponries trafficking. It is known that through Mexico to the U.S. , EU, Asia yearly thrown cocaine for 40 billion euro. In 2009, the EU and Mexico signed an understanding on cooperation in countering these menaces. The EU has expressed support for the accession of Mexico to the United Nations Framework Convention on Climate Change, supported the presidential term of Mexico in the Global Forum on Migration and Development. Migration issues are a precedence in the bilateral cooperation between the EU and Mexico. This includes both the extenuation of the visa government for EU citizens of Mexico, for alleviation to migrators in Mexico, because of joint actions in the battle against illegal migration, the EU to the full supported the enterprise of Mexico to intensify and broaden the integrating procedure in Latin America, peculiarly the enterprise of President R. Calderon.
Meanwhile, the 15 European Union states grant better duty and nontariff manufacturers in about one hundred states to similar Mexican. Similarly, free trade pacts that Mexico has signed with other states, provide better entree to the beneficiary state exporters than their similar European. Sign language of the Free Trade Agreement between Mexico and the European Union ( Economic Partnership, Political Coordination and Cooperation ) , represented a major progress in the development of trade dealingss. In the Treaty provides much broader ends and complex than other bing trade understandings, every bit good as trade issues including investing, rational belongings and economic development and cooperation.
Shortly, FTA between EU and Mexico allow to the last:
Guaranting wide entree, and unafraid discriminatory Mexican exports to the largest trading axis in the universe.
Diversify the economic dealingss of Mexico, the finish of it ‘s exports and beginnings of inputs.
Generate greater flows of foreign investing and advance strategic confederations, which will make new occupations and better wage.
Allowing better entree to other merchandising spouses of the European Union.
Chapter effectual input to the bringing service of disaggregated information for purchases of at least 150 public companies in the European Union.