Firstly I welcome the recent joint statement by the EU and Mexico to the effect that they have reached an agreement in principle on trade and investment in the context of the modernisation of the EU-Mexico Global Agreement.
While full details are still to be confirmed, the announcement by the EU and Mexico appears to provide for very significant access to the Mexican market for EU agri-food products, particularly in the areas of dairy, pigmeat and poultry. The Commission has stated that fine tuning is still going on and they are addressing some issues that will benefit Member States and industry.
From an EU perspective, significant market access improvements were agreed for our core exports of cheese and diary products to Mexico. The agreement will provide for a Tariff Rate Quota (TRQ) of 20,000 tonnes in 5 years for mature cheese and 5,000 tonnes in 5 years for fresh cheese and 50,000 tonnes phased in 5 years for skimmed milk powder. Dairy preparation will benefit from total TRQs of 13,000 tonnes. The tariff for infant formula will be reduced to 50% of the Most Favourable Nation (MFN) rate in 5 years. There will be a considerable improvement of market access conditions for EU's exports for pork (fully liberalised, except a TRQ of 10,000 tonnes of loins) and poultry (full liberalisation at entry into force for mechanically deboned chicken meat and 20,000 tonnes of leg quarters). All TRQ’s obtained by the EU are duty free.
For fruits not yet liberalised, exports of apples will reach full liberalisation in 10 years and tinned peaches will be liberalised in 7 years.
Mexico obtained the following TRQs for beef (10,000 tonne carcass weight equivalent with 7.5% duty phased-in over 5 years), beef offals (10,000 tonne carcass weight equivalent with 7.5% duty phased-in over 5 years), poultry will be fully liberalised except for chicken breast (TRQ with preferential duty of 10,000 tonnes) and egg products (5,000 tonnes egg equivalent for egg yolks). Exports of Mexican bananas will be aligned to the preferential tariff as for the other preferential bananas exporter (75€/tonne) at the moment of the entry into force of the agreement. Mexico also obtained a full liberalisation for pork with the exception of frozen ham (TRQ of 10,000 tonne carcass weight equivalent). On honey, Mexico will benefit from full liberalisation in 7 years. During the dismantling period, the existing TRQ for honey granted under the existing agreement will be replaced at entry into force by a TRQ of 35,000 duty free. Finally, on ethanol (25,000 tonnes phased-in over 5 years) and raw sugar for refining only (30,000 tonne at 49€/t phased-in over 3 years).
For food and processed agricultural products (PAPs), this agreement will achieve liberalisation of all processed agriculture products with rapid or immediate tariff dismantling for key products such as pasta, chocolates, confectionery and chocolates, biscuits, lactose and lactose syrup. This result implies improved market access to both parties and cheaper imports for consumers.
Full protection of 99% of European Union Geographical Indications has also been assured.
When it comes to agri-food, Ireland has a significant trade surplus with Mexico, particularly in dairy, with more than €45m in value exported in 2017. This announcement consolidates and strengthens the EU/Mexico relationship, and I am confident that further opportunities for the Irish agri-food sector will follow as a result. Indeed, against the background of these discussions, I led a Trade Mission to Mexico in June 2017 to promote Irish agri-food, and Irish officials engaged in technical discussions with their Mexican counterparts during that visit. I hope this agreement will allow these efforts to bear fruit in the short-term, which is of course vitally important against the background of Brexit.
