After two years of negotiations, Mexico and the European Union (EU) have reached an “agreement in principle” to modernize and replace a previous free trade deal from 2002.

Mexican Economy Minister Ildefonso Guajardo commented on the updates to the original accord, saying, “It needed to be more ambitious in the agricultural sector. It needed to be more ambitious in services. It needed to be more ambitious in many of the elements that, in the end, we managed to agree on after two years of work.”

According to the European Commission, the new agreement will allow duty-free treatment to practically all trade in goods with Mexico. The EU obtained preferential access for many cheeses, removing tariffs of up to 20% after overcoming disputes over the denomination of origin. Likewise, milk powder exports will have a preferential entry to the Mexican market in a gradual manner.

In the case of 340 foods and beverages, Mexico would be obliged to guarantee protection against imitations. The EU will have the right to keep Mexican products away from the markets if they are considered unsafe.

For Mexico, there will be free access to the European market for products such as orange juice, tuna, honey, agave syrup, ovalbumin, and fruits and vegetables, among others.

To read more about this agreement, click here.