New EU-Mexico Trade Agreement Said to Benefit Pharmaceutical, Medical Device Industries
The European Union and Mexico will further reduce tariffs on each other's goods as part of a new trade agreement, the EU said in a news release. "After several months of intense negotiations, this afternoon we reached an agreement in principle on trade and investment between the European Union and Mexico, as part of the modernisation of our bilateral legal framework," EU and Mexican officials said in a joint statement April 21. "Simpler customs procedures will further benefit the EU's industry, including in sectors like pharmaceuticals, machinery and transport equipment," the EU said. Some technical details are still needed and negotiators hope to have a final text by the end of the year.
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This agreement is a continuation of a previous agreement between the two that "did not contain many of the provisions on trade in goods that have since become standard in trade agreements," according to a fact sheet on the deal. "Trade in medical devices will be easier thanks to simplified trade in remanufactured machinery," it said. The agreement also will add some intellectual property protections. "For pharmaceutical and plant protection patents, the agreement allows for compensation for unreasonable delays in the marketing authorisation process," the EU said.
The deal also included an annex on pharmaceuticals. "The recognition of the EU regulatory regime would provide the certainty that this trade can continue unhindered," said the EU in a detailed summary of the agreement. "The annex on pharmaceutical products confirms the Parties cooperation on the adoption of international standards. Both sides will work towards seeking to achieve a Mutual Recognition Agreement on Good Manufacturing Practice to new pharmaceutical products."
Once the deal takes effect, 98 percent of goods traded will face no duties right away, the EU said. "For the remaining items, customs duties will be eliminated over time or for a limited amount defined as a quota." Mexico said in its news release that the agreement will especially benefit Mexico's agrifood sector. The deal will also "bring in new rules to simplify and speed up paperwork and physical checks at Mexican customs," the EU said.
The trade facilitation section of the deal will update customs procedures, "setting common principles and providing for better cooperation and exchange of information between EU and Mexican customs authorities," the EU said. There are also "substantial provisions on transparency to ensure that traders and the public have access to information on customs legislation, decisions or administrative policies." Both sides will also begin to issue binding rulings, said the EU. "Furthermore, EU and Mexico agreed on enhanced provisions regarding other areas such as penalties, transit, single window, customs brokers and pre-shipment inspection."