On 30 May 2016, Mexico and the European Union formally began talks to update their current free trade agreement. The first round of negotiations for the modernization of the agreement was held in Brussels, Belgium, on 13 and 14 June 2016. The second round of negotiations for the modernization of the agreement was held in Mexico City from 22 to 25 November 2016. The context, benefits, concerns and process of the agricultural trade agreement are addressed in three bilateral agricultural agreements negotiated between the State of EFTA (Iceland, Norway and Switzerland) and Mexico. These agreements are part of the instruments for creating the free trade area and are governed by the disciplines applicable to trade in goods in the main agreement. They provide for significant concessions on both sides, taking into account the respective sensitivities. Each agreement contains specific rules of origin, usually based on “fully preserved” criteria. The parties have committed to liberalizing, for the most part, all sectors of trade and services, in accordance with Article V of the GATS. The “investment” part (section V, Articles 45-49) essentially provides for the liberalisation and protection of certain payments and transfers related to foreign direct investment (Article 46) as well as the promotion of investment between the contracting parties (Article 47). Since agriculture accounts for just over one per cent of EU GDP, the threat posed by Mexican products outside the agricultural environment cannot cause much suffering. Instead, companies and wealthy individuals may be more interested in the terms of the agreement, which facilitate investment in each market, by limiting the number of companies likely to engage in specific economic activity.
Changes in food standards may make headlines, but new investment criteria will determine where real money will end up. The free trade agreement applies to trade in industrial products, fish and seafood. In addition, bilateral agricultural agreements have been concluded between the various EFTA countries and Mexico, which are part of the instruments for creating the free trade area.
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