In 1997, Mexico was the first country in Latin America to sign a partnership agreement with the EU. The "EU-Mexico Economic Partnership, Political Coordination and Cooperation Agreement" entered into force in 2000 and established a free trade area (FTA) between the two parties (see trade section below). It also establishes regular high-level contact between the EU and Mexico and acted as a catalyst for increased investment flows.
The EU is Mexico's second largest export market (after the US) and Mexico is the EU's 18th export partner. Mexico's main exports to the EU are mineral products, machinery, electrical and transport equipment and optical photo precision instruments. EU exports to Mexico consist of machinery, electrical equipment, transport equipment, chemicals and minerals. In terms of services, Mexico exports travel/transport and construction services. The EU exports travel/transport and computer services.
The two have a broad and comprehensive FTA which entered into force in October 2000. It covers goods, services, public procurement, competition, intellectual property and investment. iBilateranvestment flows are significant. A joint committee and special committees meet once a year and a joint council meets biannually.