Mexico-EU Accelerate Trade Negotiations
Mexico and the European Union voted to accelerate trade negotiations on February 1 in order to deepen economic ties in response to the election of Donald Trump. Both Mexico and the EU scheduled two rounds of discussion for April 3-7 and June 26-29, according to Reuters. The inauguration of President Trump sparked widespread fear throughout many of the United States’ most important trade allies as a result of his protectionist policies. Mexico particularly worries about the economic impact of the US withdrawal from the Trans-Pacific Partnership and the uncertain renegotiation of the North American Free Trade Agreement. According to Reuters, Trump’s rhetoric forced Mexico to turn outward and pursue broader trade ties, notably with the European Union.
Trade between Mexico and the EU began in 2000, and between 2005 and 2015, it facilitated the rise of the yearly flow of goods exchanged from 26 to 53 billion euros, according to the European Commission on Trade. Reuters reports that this rate of trade makes the European Union Mexico’s third-largest trading partner.
In Atlantic Sentinel, trade analysts and economists suggest that the focus of the negotiation rounds will be to renew the current agreement. This signals a renewed commitment between Mexico and the European Union to maintain open borders and the distribution of prosperity in the face of rising anti-globalization and protectionism. Although the exact details of the negotiations remain unclear, representatives of Mexico and the European Union stressed in a joint statement that “side by side, as like-minded partners, we must now stand up for the idea of global, open cooperation,” according to the European Sting.