Foodstuffs, the most benefited from FTA between EU and Mexico
Spain is one of the countries most benefited by the Free Trade Agreement (FTA) between Mexico and the EU, according to Jochen Müller, spokesman for the EC in Spain, highlighting that the agrofood sector will be the winner.
On April 21, The EU and Mexico signed the treaty that liberalized the commercial exchanges between both regions. This new European step against trade protectionism came after having signed similar agreements with Canada and Japan. The next one will be even more ambitious since it will seek an agreement with the four countries which make up Mercosur (Brazil, Argentina, Uruguay and Paraguay).
The expected date for the FTA to come into force is the summer of 2019, and thereafter, according to Müller, "99% of Spanish agricultural products won't be penalized with tariffs in Mexico. In this way, cheese or milk, which suffer 45% and 20% penalties in customs, will be free of tariffs".
"But the main opportunities for Spanish companies are for the meat sector", Müller continued. "Pork meat is taxed with a tariff of 45% and poultry meat with 100%".
Müller also advanced that the Spanish agrofood sector will be protected with the recognition of 340 designations of origin in addition to those that currently exist, which affect wines, cheeses and oils.
In 2017, Spanish companies sold goods to Mexico worth €4.6 billion (+12.2%), representing 1.7% of total Spanish exports. Foodstuffs, beverages and tobacco worth €361 million.
In the same year, Mexican companies sold goods to Spain worth €4 billion, 1.3% of their total exported.
Source: CincoDías