EU and Mexico sign new free trade deal

EU and Mexico sign new free trade deal

The EU and Mexico on Saturday signed a free trade agreement [text].

The agreement reduces tariffs on food and drink while allowing for the EU Geographical Indications [USPTO backgrounder] to be maintained. Irish Whiskey and French Champagne will be distinguished when sold from domestically produced products. In addition to reducing tariffs and non-trade barriers by harmonizing regulations, the agreement will also open up service trade. The EU expects that telecom and financial service industries will increase as well.

This new agreement modernizes an old agreement [text, PDF] made over 20 years ago. Since the old treaty came into effect, the EU has enlarged to encompass 13 new member states.

“With the new Agreement full liberalization will reach more than 85% of lines which had not been liberalized. Exclusion of products has been kept to the strict minimum and refers only to the sugar sector.”