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The EU-Mexico trade deal will secure a “very significant volume of milk powder exports” to one of the EU’s largest markets, the European Commissioner for Agriculture Phil Hogan has said.
Speaking at a press conference on Monday, the Commissioner said: “This deal will make trade with Mexico easier, so I am very optimistic that we can grow agriculture and food exports to this important market.
“Last year, EU agri-food exports reached a record level of €138bn, which was a 5% increase in value terms on the previous year.
“The deal secures a very significant volume of milk powder exports in one of the largest markets, starting with 30,000t from the entry into force, rising to 50,000t after five years duty-free.
“Milk powder is currently taxed at up to 50%. At a time of significant stocks in public intervention, this is a very important and welcome development,” he said.
Following on from that, the EU will make gains when it comes to pork exports, with 99% of products becoming duty free after five years.
Duties and tariffs will also be scrapped on EU poultry products going to the EU under the new deal.
Beef access
Under the new deal, the EU and Mexico have agreed that Mexico will be allowed to export 10,000t of beef carcase weight equivalent (CWE) to the EU with a duty rate of 7.5% after five years.
It has also been agreed that Mexico will be allowed export 10,000t CWE of beef offals, also with a 7.5% duty after five years.
As beef is considered a sensitive product, it will be protected under the new trade deal: the amount Mexico can import is limited and the EU will have the power to stop preferential imports from Mexico if there was a sudden surge which put EU producers at risk.
Trade barriers
Also speaking at the press conference was the European Commissioner for Trade Cecilia Malmstrom. She said: “We have a new trade agreement between the EU and Mexico to tear down the vast majority of trade barriers between us.
“This is replacing an old agreement from 2000, making our trading relationship fully fit for the 21st century.
“Mexico has 128m potential consumers and customers, so it’s of course a hugely important market for the EU.
“We agreed that basically all trading goods between us will be made duty free, scrapping existing tariffs. This includes agricultural tariffs,” she said.
What happens next?
Once the legal text of the agreement is finalised, checked and translated, agreement must be approved by the trade ministers of EU member states, the 751 MEPs in the European Parliament and all national, and in some cases regional, parliaments.
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