EC/Mexico Economic Partnership, Political Coordination and Cooperation Agreement

OBJECTIVE: conclusion of a political, economic and trade agreement between the European Community and its Member States, of the one part, and Mexico, of the other part. SUBSTANCE: the draft agreement, initialled by the parties on 23 July 1997, will replace the framework agreement for cooperation between the Community and Mexico signed on 26 April 1991. It will be concluded for an indefinite period, the object being to strengthen existing relations between the parties on the basis of reciprocity and mutual interest by institutionalizing an intensified political dialogue, the progressive liberalization of trade and the broadening of cooperation. - Democracy clause: respect for democratic principles and human rights constitutes an essential element of the agreement. However, Mexico, in a unilateral declaration, draws attention to the constitutional line of its foreign policy. - Regular political dialogue: institutionalization of political dialogue at the highest level covering all matters of mutual interest. - Trade: the agreement establishes a legal framework to develop bilateral and preferential, progressive and reciprocal liberalization of trade in goods and services, taking into account the sensitive nature of certain products and in accordance with the relevant WTO rules. The arrangements and timetable for such liberalization will be drawn up by the Joint EU-Mexico Council established by the agreement in the context of negotiations on this subject. Provision is also made for arrangements to encourage the liberalization of capital movements and payments, competition, protection of intellectual property and the opening up of public procurement. - Economic matters: regular dialogue will be instituted in order to improve economic cooperation. This covers all areas: industrial cooperation, investment promotion, financial services, SMEs, technical regulations and conformity assessment, customs cooperation, the information society, science and technology, energy, transport, communications, tourism, environment and natural resources, and cooperation on agriculture and fisheries. - Other areas of cooperation: the agreement also contains provisions designed to improve cooperation on social issues and poverty, regional matters, public administration, information and culture, training and education, drugs, consumer protection, health, development of the civil society, and aid for refugees from Central America living in Mexico. A future development clause will allow the scope of cooperation to be broadened if necessary. A joint declaration confirms the parties' obligations on maritime transport services undertaken as members of the WTO and OECD. - Resources for cooperation: the parties undertake to make available the appropriate financial and other resources needed to implement the agreement (encouraging the EIB to intensify its investment in Mexico). At institutional level, the agreement establishes a Joint Council to supervise its implementation at ministerial level. The Joint Council is assisted by a Joint Committee and special committees. A joint declaration makes provision for dialogue at parliamentary level. �