Free Trade Agreement between Mexico and the European Union

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Free Trade Agreement between Mexico and the European Union (FTA EU-MX), is a trade agreement between the European Union and Mexico. It was signed on December 8, 1997, in the city of Brussels, under the designation "Agreement of Economic Partnership, Political Coordination and Cooperation between the United Mexican States and the European Community and its members". On July 1, 2000 the agreement came into force, and taxes applying to a large quantity of importing goods were eliminated or reduced.

The goal of this trade agreement is to establish a framework to encourage the development of trade in goods and services and their bilateral and preferential, progressive and reciprocal, taking into account the sensitivity of certain products and services sectors, and in accordance with relevant WTO rules. To achieve this goal, the Joint Council is responsible for deciding the arrangements and timetable for the liberalization of duties and non-duties barriers to trade in goods, in accordance with the relevant WTO rules. The decision shall include the following subjects:[1]

  • Customs duties on imports and exports and charges having equivalent effect
  • Quantitative restrictions on imports and exports and measures having equivalent effect
  • Anti-dumping/Countervailing measurements
  • Safeguards and monitoring measurements
  • Origin regime and Customs Cooperation;
  • Customs Cooperation
  • Customs valuation
  • Standards and technical regulations, sanitary and phytosanitary legislation, mutual recognition of conformity assessment, certification, marking among other.
  • General exceptions justified on grounds of public morality, public order or public security, protection of life or health of humans, animals or plants, protection of industrial property, intellectual and commercial, among other.
  • Restrictions in case of difficulties in the balance of payments

Benefits to the Companies in order to obtain free trade agreement[edit]

Companies now must look for tools to minimize costs, so they must take advantage of the benefits of FTAs. To do so they must know and determine if their products fall within some benefit in those treated. To determine whether a product qualifies for a free trade agreement, importers must obtain product information and certificate of origin by the suppliers. The application of this document manually can be time-consuming and daunting. Once the vendor documentation is received, the importer must determine the eligibility of the product, based on numerous rules about the tariff of the Harmonized Tariff Schedule. There are systems that automate the application process to the supplier and the determination of eligibility of the product based on free trade agreements, rules and preferences around the world. Some of the benefits are:[2]

  • Manage the qualifications for various free trade agreements in an integrated system
  • Request and manage documents and certificates to suppliers for product eligibility
  • Generating certificates with the input of providers to ensure the proper production
  • To determine the qualification to free trade through automated analysis of multiple list of materials with multiple free trade agreements and / or programs
  • Create accurate certificates to eligible customers once the product has been fulfilled
  • Store documents electronically for easy retrieval and communication with buyers
  • Access the updated regulations of free trade to the extent
  • Knowing the benefits of preferential multiple treaties and preference programs
  • Minimize costs and increase the opportunities for savings by reducing or eliminating duties

References[edit]

  1. ^ Secretary of Economy http://www.economia.gob.mx/?P=5200_5208_1
  2. ^ Integration Point http://www.integrationpoint.com/products/freetrade.html

See also[edit]