The National Auto Parts Industry (INA) highlighted that the modernization of the Free Trade Agreement between the European Union and Mexico (EU-Mexico FTA 2.0) will strengthen the Mexican automotive industry.
Both parties concluded last Friday the negotiations of the EU-Mexico FTA 2.0.
Gabriel Padilla, director general of INA, said that this new treaty will strengthen the supply chain in Mexico. “Integration with European supply chains will strengthen our position in the global automotive industry,” he commented.
EU-MEXICO FTA 2.0
The European Commission reported that the agreement facilitates “strategic cooperation on key geopolitical issues, keeping up with rapidly changing realities.” This includes reducing supply chain risks, ensuring a sustainable supply of critical raw materials and combating climate change.
Mexico is the main supplier of fluorspar to the European Union (22% of this bloc’s total imports), a substance used in the steel, iron and aluminum supply chain, as well as in the refrigeration sector. Mexico is also an important supplier of raw materials such as zinc, copper and molybdenum.
“This agreement will encourage our companies to adopt cutting-edge technologies and sustainable practices, raising quality standards and competitiveness in the global marketplace,” Padilla added.
According to the European Commission, the new agreement will help increase EU services exports in key areas such as financial services, transport, e-commerce and telecommunications.
Synergies
Other changes involve the elimination of non-tariff barriers and the establishment of a level playing field, for example in intellectual property rights.
Padilla said that collaboration with European companies will allow the exchange of knowledge and technology, boosting innovation in the sector, while the agreement promotes the transition to a greener economy.
Political negotiations to modernize the EU-Mexico FTA were concluded, following the political compromise between the Commissioner for Trade and Economic Security, Maroš Šefčovič, and the Secretary of Economy, Marcelo Ebrard.
Subject to final legal review, the two parties will now proceed to their respective signature and ratification procedures.