Thursday, February 6, 2025

MEXICO

On 17 January 2025, Mexico and the European Union (EU) announced the final signing of the modernization of their Free Trade Agreement. This deal, which has been in negotiation for several years, aims to foster economic collaboration, promote sustainability, and strengthen global supply chains.

 Key Benefits of the New Agreement

 The modernized treaty offers extensive business opportunities and supports the ecological and digital transitions in both regions by:

Boosting service exports: Enhancing sectors such as financial services, transport, e-commerce, and telecommunications.

 

Strengthening supply chains: Improving the competitiveness of European industries through access to critical raw materials.

 

Ensuring fair conditions: Eliminating non-tariff barriers and promoting the protection of intellectual property rights.

 

Access to public contracts: EU companies will be able to participate in Mexican government tenders on equal terms with local businesses.

 

Protecting investments: Strengthening and safeguarding European investments in Mexico.

 

Encouraging digital transition: Introducing a specific chapter on digital trade to drive technological growth.

 

Promoting sustainability: Supporting the circular economy, including standards to encourage the reuse and repair of goods.

Tuesday, February 4, 2025

U.S. Trade Tariffs

 The latest round of U.S. tariffs has triggered a global chain reaction, with key trading partners retaliating, realigning supply chains, and reshaping trade policies. From North America’s countermeasures to Asia’s manufacturing pivots and Europe’s economic defense, every region is adjusting to the new reality.

Following the imposition of 25% tariffs on Canadian and Mexican imports by the U.S. (effective February 4, 2025), both countries have announced significant retaliatory measures. 

    • Canada has imposed 25% tariffs on $155 billion worth of U.S. goods.
    • The tariffs will be implemented in two phases:
      • Phase 1: $30 billion in tariffs effective March 4, 2025.
      • Phase 2: $125 billion in tariffs to be implemented after a 21-day public comment period.
    • Trade with the U.S. accounts for 77% of Canadian goods exports and 63% of imports, with exports responsible for 19% of Canadian GDP.
    • The provinces most reliant on U.S. markets include Ontario (81%), Alberta (89%), and New Brunswick (92%).

 Mexico’s trade relationship with the U.S. is deeply integrated under the USMCA framework.

    • The country is also leveraging agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to expand trade with Asia-Pacific economies.