Mexico-European Union Global Agreement will boost Yucatecan business

Small, medium and large companies in Yucatan will find new opportunities to do business, as a result of the modernization of the Economic Association Agreement, Political Agreement and Cooperation between Mexico and the European Union (EU), also called the Global Agreement.

Cooperation will be promoted for greater participation of SMEs in international trade
Cooperation will be promoted for greater participation of SMEs in international trade

During the presentation of said treaty, it transpired that cooperation will be promoted to promote greater participation of small and medium-sized enterprises (SMEs) in international trade, which is aligned with the Development Plan established by the Yucatecan government

"Yucatan is a state in growth and transformation, and this process must be constant and participatory. Today we are receiving 37.9 percent more of foreign direct investment than six years ago, "declared during the presentation of the agreement, the head of the Ministry of Economic Development and Labor (Sefoet), Ernesto Herrera Novelo.

In the presence of the EU ambassador in Mexico, Klaus Rudischhauser, the state official highlighted the arrival of capital in Yucatan from countries such as Belgium and Germany, in the automotive, agroindustrial and textile sectors, which have brought an increase in the industrial sector of 5.2 percent, which has remained the last four years.

"Following the marked work plan, we envisioned a Yucatan with more opportunities to make investments, enrich the commercial exchange, generate quality jobs and succeed in the formation of professional skills, and precisely that is the kind of opportunities that this Global Agreement will bring" , he said.

Rudischhauser explained that the update and renegotiation process started in 2016 to reach an agreement in principle in 2018.

"We are convinced that in a few weeks we will be able to close the negotiation and we are very optimistic that this Agreement will enter into force for the commercial part next year," he added.

In addition, the diplomat stressed that: "this agreement is not purely commercial, it is a global agreement with a political party, one cooperation and one commercial, that the three are linked."

"It is much broader than all the trade agreements we have with other countries and it is also the most modern. And we do it with Mexico because it is a very important partner with many opportunities for both sides, "said the head of the Delegation of the EU in Mexico.

The head of the Economic and Commercial Section of the Delegation of the EU in Mexico, Paolo Caridi, said that the renewed document addresses strategic issues of global relevance such as social cohesion, human rights, multilateralism, climate change, rule of law and trade.

In it, he added, common aspirations and goals are established, and the values ​​of sustainable development are linked to economic growth. Thus, it highlights a set of commitments to protect the environment and the prerogatives of workers.

Some of the key points of the negotiation include the elimination of import tariffs on certain agricultural products and the obstacles to exports derived from regulations and unclear regulations.

On the other hand, trademarks, geographical indications and appellations of origin will obtain a higher level of protection, customs requirements and rules of origin will be simplified, and sanitary and phytosanitary barriers will be lifted.

Since the entry into force of the Global Agreement in 2000, the EU has become the third largest trading partner of Mexico and the second largest investor, contributing 31 percent of direct foreign investment.

via: La Jornada Maya