EFTA states signed a free trade agreement with Mexico City on November 27, 2000. The agreement entered into force on July 1, 2001. The European Union and Mexico have reached an “agreement in principle” on the main trade parties of a new eu-Mexico association agreement. The new agreement replaces a previous agreement between the EU and Mexico in 2000. Negotiations with Mexico began in May 2016 and the two sides reached an agreement in principle on the trade side in April 2018. Agricultural trade is the responsibility of 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 provisions of the agreement on services are of considerable importance to EFTA states. The “General Services” section covers the four types of services within the meaning of the WTO GATS (Article 19), as well as all service sectors, including maritime services, financial services, telecommunications, distribution, energy, audiovisual tourism and the environment, with the exception of air transport. The agreement between Canada, the United States, Mexico (CUSMA) / the United States, Mexico, Canada (USMCA) is a new high-quality regional agreement of the 21st century between the Government of Canada, the Government of the United States of Mexico and the Government of the United States of America to support mutually beneficial trade, which leads to freer and fairer markets and robust economic growth in the region. Background, Utility, Concerns and Process of the Agreement To see the full text of the agreement between the United States, Mexico and Canada, click here. The entry into force of the agreement put into effect a so-called status quo obligation (i.e. the prohibition of the introduction of new or more restrictive measures affecting market access) (Article 24), which ensures that service providers in EFTA states have access to the Mexican market in a manner comparable to that of the low wages of Mexico`s preferential trading partners. In the financial services sector, for which a separate section has been negotiated (Section III, Articles 28-43), a new status quo obligation has been introduced (Article 34) and the parties have listed the measures they maintain that are inconsistent with Articles 29-33 (Article 34, Appendix VIII), most of which are removed three years after the agreement comes into force (Article 34, paragraph 3). The Financial Services section ensures that EFTA banks and insurance companies are allowed to work and establish themselves directly in Mexico on equivalent terms with financial service providers from Mexico`s other preferred partners. The initial Association Agreement brought many trade benefits to the EU and Mexico, although some trade barriers remain. The result is more liberal rules in sectors where one side is facing a shortage of raw materials or components (for example.B.