{"id":74959,"date":"2018-04-28T20:26:45","date_gmt":"2018-04-28T20:26:45","guid":{"rendered":"http:\/\/www.bnreport.com\/mexicos-eu-trade-deal-lands-a-punch-on-trump-6\/"},"modified":"2018-04-28T20:26:45","modified_gmt":"2018-04-28T20:26:45","slug":"mexicos-eu-trade-deal-lands-a-punch-on-trump-6","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/mexicos-eu-trade-deal-lands-a-punch-on-trump-6\/","title":{"rendered":"Mexicos EU trade deal lands a punch on Trump"},"content":{"rendered":"<p>Mexico delivered a defiant political riposte to U.S. President Donald Trump on Saturday by agreeing <a href=\"https:\/\/www.politico.eu\/pro\/from-banks-to-avocados-eu-seeks-mexico-trade-upgrade\/\" rel=\"noreferrer\" target=\"_blank\">a trade deal<\/a> with the EU.<\/p>\n<p>Trumps push to renegotiate the North American Free Trade Agreement helped catalyze Mexicos <a href=\"http:\/\/ec.europa.eu\/trade\/policy\/countries-and-regions\/countries\/mexico\/\" rel=\"noreferrer\" target=\"_blank\">talks with Brussels<\/a> over the past year, as the Latin American country sought to diversify away from dependence on an increasingly hostile U.S.<\/p>\n<p>Diplomats said German Chancellor Angela Merkel and Mexican President Enrique Pe\u00f1a Nieto had given instructions that negotiators should attempt to seal an agreement before Sundays opening ceremony of the <a href=\"http:\/\/www.hannovermesse.de\/home\" rel=\"noreferrer\" target=\"_blank\">Hannover Messe<\/a>, a major trade fair in Germany, where both will be present. Mexico is the partner country of the event this year.<\/p>\n<p>The deal is a major upgrade of an original accord struck in 2000, which covered basic goods and machinery. The new pact will branch out into sectors such as finance, e-commerce and agriculture.<\/p>\n<p>Pe\u00f1a Nieto said the agreement \u201cconfirms us as priority partners of one of the most important economic blocs in the world.\u201d<\/p>\n<blockquote>\n<p>Saturdays deal was an \u201cagreement in principle,\u201d which means it will still need fine-tuning in the coming months.<\/p>\n<\/blockquote>\n<p>In a thinly veiled side-swipe at Trumps protectionism, EU Trade Commissioner Cecilia Malmstr\u00f6m <a href=\"http:\/\/europa.eu\/rapid\/press-release_IP-18-782_en.htm\" rel=\"noreferrer\" target=\"_blank\">said<\/a> that such deals were possible when \u201cboth partners share a clear belief in the merits of openness, and of free and fair trade.\u201d<\/p>\n<p>She added that it was an accord \u201cfit for the economic and political challenges of the 21st century.\u201d<\/p>\n<p>A statement from the EU said that the deal would ensure almost entirely tariff-free trade in all goods, including agricultural products, while simplifying customs procedures in sectors such as pharmaceuticals and transport.<\/p>\n<p>Agriculture Commissioner Phil Hogan, who was involved in the negotiations, said the upgraded accord would be \u201cvery positive\u201d for Europes food sector.<\/p>\n<p>While a deal with Europe has heavy political significance, Trumps renegotiation of NAFTA has far greater economic consequences for Mexico. The country exported some $340 billion of goods and services to the U.S. last year, but only \u20ac28.8 billion worth to the EU.<\/p>\n<h3>Political deal<\/h3>\n<p>Saturdays deal was an \u201cagreement in principle,\u201d which means it will still need fine-tuning in the coming months.<\/p>\n<p>A breakthrough had <a href=\"https:\/\/www.politico.eu\/article\/eu-and-mexico-make-big-push-for-trade-deal-in-coming-days\/\" rel=\"noreferrer\" target=\"_blank\">seemed tantalizingly close<\/a> at the end of 2017 but negotiators failed to bridge differences over the local content requirements in cars and protections for Europes gourmet food labels.<\/p>\n<p>Talks moved up a gear this week, however. Europes chief negotiator Helena K\u00f6nig and her Mexican counterpart C\u00e9sar Guerra kicked off marathon talks on Monday. On Wednesday, Mexican Trade Undersecretary Juan Carlos Baker arrived in Brussels to offer more political impetus in discussions with the EU trade departments director general, Jean-Luc Demarty.<\/p>\n<p>Discussions over local content had proved extremely difficult until the very last moment. The EU insisted that 55 percent of vehicles must be made out of parts and materials from Europe or Mexico, while Mexico demanded more flexibility on using foreign content such as components from the United States.<\/p>\n<p>The discussions had been complicated by the ongoing NAFTA negotiation between Mexico, the United States and Canada, in which Washington has made tough demands for a higher percentage of car parts being produced on U.S. soil.<\/p>\n<p>In their talks with the EU on agriculture, the Mexicans demanded better market access for beef \u2014 naturally a difficult request for some EU countries, such as France and Ireland. The Mexicans, in return, were struggling with the EUs desire to lift barriers on dairy exports like cheese and milk powder.<\/p>\n<p>The EU also said it would be able to greatly expand its pork exports.<\/p>\n<blockquote>\n<p>EU &amp; Mexico reach agreement on Trade <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/2.4\/72x72\/1f1ea-1f1fa.png\" alt=\"??\"\/><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/2.4\/72x72\/1f1f2-1f1fd.png\" alt=\"??\"\/><\/p>\n<p>-Practically all trade in goods will be duty-free<br \/>-Committed to implement obligations under Paris Climate Agreement<br \/>-1st <a href=\"https:\/\/twitter.com\/hashtag\/EUtrade?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noreferrer\" target=\"_blank\">#EUtrade<\/a> agreement to tackle corruption<a href=\"https:\/\/t.co\/7u3MO0kxYT\" rel=\"noreferrer\" target=\"_blank\">https:\/\/t.co\/7u3MO0kxYT<\/a> <a href=\"https:\/\/t.co\/XwQB7WKOvT\" rel=\"noreferrer\" target=\"_blank\">pic.twitter.com\/XwQB7WKOvT<\/a><\/p>\n<p>\u2014 European Commission <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/2.4\/72x72\/1f1ea-1f1fa.png\" alt=\"??\"\/> (@EU_Commission) <a href=\"https:\/\/twitter.com\/EU_Commission\/status\/987776096262393857?ref_src=twsrc%5Etfw\" rel=\"noreferrer\" target=\"_blank\">April 21, 2018<\/a><\/p>\n<\/blockquote>\n<p>Europes request to include geographical indications also proved as a thorny issue. The U.S. had long lobbied Mexico to not accept the system, which protects iconic food names such as Champagne that can only be sold under the original name if they come from the respective producing region.<\/p>\n<p>Mexico finally accepted the concept. The Commission said the final deal would offer protection from copies for 340 distinctive European foods and drink products in Mexico such as Queijo S\u00e3o Jorge cheese from Portugal and Szegedi szal\u00e1mi from Hungary.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mexico delivered a defiant political riposte to U.S. President Donald Trump on Saturday by agreeing ..<\/p>\n","protected":false},"author":1,"featured_media":74960,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-74959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mexicos EU trade deal lands a punch on Trump - Business News Report<\/title>\n<meta name=\"description\" content=\"Mexico delivered a defiant political riposte to U.S. President Donald Trump on Saturday by agreeing ..\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bnreport.com\/en\/mexicos-eu-trade-deal-lands-a-punch-on-trump-6\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mexicos EU trade deal lands a punch on Trump - 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