The Free Trade Agreement (FTA) contains an ambitious and comprehensive chapter on Trade and Sustainable Development. It also includes a Joint Declaration on trade and gender equality.
Women’s participation in international trade is on the rise, driven by digitalization and global value chains. However, gaps persist in financing, market access, business leadership, and working conditions. This is particularly evident in emerging economies and manufacturing-intensive export sectors.
This Friday, at the National Palace, Mexico’s Secretary of Economy, Marcelo Ebrard, and the European Commissioner for Trade, Maroš Šefčovič, signed the Cooperation and Integration Agreement (CIA). This agreement will regulate the exchange of goods and services between Mexico and the European Union once it is ratified by the European Parliament and the Mexican Senate. In addition, the agreement seeks to strengthen bilateral trade, foreign investment, and the integration of supply chains between the two economies.
Sustainable Development
With the aim of entering into force before the end of 2026, the ACI includes a comprehensive and ambitious chapter on Trade and Sustainable Development. This chapter aims to strengthen the integration of sustainable development into the trade and investment relationship between Mexico and the European Union.
The agreement establishes legally binding commitments regarding environmental protection, climate change, and labor rights. It also includes mechanisms for cooperation, dialogue with civil society, and dispute settlement procedures.
This chapter also includes a review clause that requires the Parties to assess potential further improvements to the sustainability provisions. It includes the application of countermeasures in the event of non-compliance and the eventual incorporation of the Paris Agreement as an essential element of the treaty. Consequently, the review will begin upon the agreement’s entry into force and must be completed within a 12-month period.
Trade and Gender Equality
The Parties also agreed on a Joint Declaration on trade and gender equality, which includes provisions to ensure the effective implementation of international obligations related to gender equality and women’s rights. It also aims to strengthen cooperation on policies and measures related to trade and gender equality. It is worth noting that the Joint Declaration forms an integral part of the CETA.
Mexican President Claudia Sheinbaum and European Commission President Ursula von der Leyen signed the Modernized Global Agreement (MGA, which includes the ACI) that same day, subject to ratification by the European Parliament, the legislatures of the 27 member states, and the Mexican Senate.
Focus on the Needs of SMEs
The ACI stipulates that Mexico and the European Union must create a website aimed at small and medium-sized enterprises (SMEs), with the purpose of facilitating access to information and enabling them to take full advantage of the provisions of the trade agreement. Additionally, the contact points of both Parties will collaborate to address the specific needs of SMEs and identify opportunities in both markets.