Kiri

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EUROPEAN COMMISSION

Brussels, 3.9.2025

COM(2025) 810 final

2025/0810 (NLE)

Proposal for a

COUNCIL DECISION

on the conclusion, on behalf of the European Union, of the Political, Economic and

Cooperation Strategic Partnership Agreement between the European Union and its

Member States, of the one part, and the United Mexican States, of the other part

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EXPLANATORY MEMORANDUM

1. CONTEXT OF THE PROPOSAL

• Reasons for and objectives of the proposal

The attached proposal constitutes the legal instrument for authorising the conclusion of the

Political, Economic and Cooperation Strategic Partnership Agreement between the European

Union and its Member States, of the one part, and the United Mexican States, of the other part

(also known as the Modernised Global Agreement and hereinafter referred to as ‘MGA’ or

‘the Agreement’). It also authorises the provisional application of parts thereof.

Relations between the European Union ('EU') and the United Mexican States (‘Mexico’') are

currently based on the Economic Partnership, Political Coordination and Cooperation

Agreement (hereinafter ‘the Global Agreement’) between the European Community and its

Member States, of the one part, and the United Mexican States, of the other part, which

entered into force on 1 October 2000 1. The trade pillar of the Global Agreement was

expanded by two decisions of the Joint Council: Decision No 2/2000 of the EC-Mexico Joint

Council of 23 March 2000 related to trade in goods 2 and Decision No 2/2001 of the EU-

Mexico Joint Council of 27 February 2001 on trade in services 3.

Since the entry into force of the Global Agreement, the EU and Mexico have deepened their

relations. In 2008, the EU and Mexico established a Strategic Partnership which introduced a

bilateral dialogue and cooperation in new key policy areas, including multilateral issues,

security and justice, macroeconomic aspects, and human rights.

In the Santiago Declaration of 27 January 2013, the Parties expressed their joint commitment

to modernise and replace the existing Global Agreement to reflect new political and economic

realities and the advancements made in their Strategic Partnership.

At the seventh EU-Mexico Summit in Brussels in June 2015, both sides reaffirmed their

willingness to launch the process of starting negotiations, according to the legal framework of

each side to modernise the Global Agreement and to reinforce the Strategic Partnership.

On 4 May 2016, the Council of the European Union adopted Decisions authorising the

European Commission and the High Representative of the Union for Foreign Affairs and

Security Policy to negotiate a modernised agreement with Mexico to replace the Global

Agreement.

The negotiations were formally launched in May 2016. The negotiations were conducted in

consultation with the Council Working Party on Latin America and the Caribbean. The Trade

Policy Committee was consulted on the trade-related parts of the Agreement. The European

Parliament has been informed about the outcome of the negotiations.

Following the political conclusion of negotiations of the political and cooperation pillar in

2018, an agreement was reached on 17 January 2025 for the trade and investment pillar. Trade

negotiations were conducted to unfold the full potential of the bilateral relationship and help

meet current global challenges.

1 OJ L276, 28.10.2000, p. 44-80. 2 OJ L 157, 30.6.2000, p. 10–29. 3 OJ L 70, 12.3.2001, p. 7–50.

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The modernisation of the existing Global Agreement revolves around two legal instruments:

1. The Modernised Global Agreement (‘MGA’), which includes a) the political and

cooperation pillar and b) the trade and investment pillar (inclusive of investment

protection provisions); and

2. the Interim Agreement on Trade (‘ITA’) covering trade and investment

liberalisation.

The ITA is intended to be signed at the same time as the MGA. The ITA will expire and be

replaced by the MGA upon the MGA’s full entry into force, following its ratification.

The present proposal concerns the legal instrument authorising the conclusion of the MGA.

• Consistency with existing policy provisions in the policy area

The MGA provides a modernised, comprehensive, legal framework for EU-Mexico relations

and replaces the current Global Agreement, including any subsequent decision by its

institutional bodies, except for Decision No 5/2004 of the EU-Mexico Joint Council of

15 December 2004 adopting, pursuant to Article 17(3) of Decision No 2/2000, an Annex to

the said Decision on mutual administrative assistance in customs matters 4. During the period

of provisional application, in so far as the provisions of the Global Agreement are not covered

by the provisional application of the MGA, the provisions of the Global Agreement continue

to apply. The Agreement also replaces, upon its entry into force, the ITA.

Over the years, the EU and Mexico have concluded, in addition to the Global Agreement,

several bilateral sectoral agreements, including the Agreement between the European

Community and the United Mexican States on the mutual recognition and protection of

designations for spirit drinks signed in Brussels on 27 May 1997 (the ‘1997 Spirits

Agreement’) 5.

The 1997 Spirits Agreement is incorporated into the MGA. The other sectoral agreements not

falling within the scope of the MGA will remain in place as separate agreements.

From the date of its full entry into force, the MGA will replace and supersede the bilateral

investment treaties between Mexico and EU Member States that are listed in Annex 10 C of

the MGA.

The MGA is fully in line with the EU’s overall vision for its partnership with Latin America

and the Caribbean, as outlined in the Joint Communication to the European Parliament and

the Council of the European Union on a New Agenda for Relations between the EU and Latin

America and the Caribbean, adopted on 7 June 2023.

In addition, the trade and investment pillar of the MGA is fully in line with the ‘Trade Policy

Review - An Open, Sustainable and Assertive Trade Policy’ of February 2021, which

anchors trade and investment policy to European and universal standards and values,

alongside core economic interests, putting a greater emphasis on sustainable development,

human rights, tax evasion, consumer protection, and responsible and fair trade.

4 OJ L 66, 12.3.2005, p. 15-21. 5 OJ L 152, 11.6.1997, p. 16–26.

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• Consistency with other Union policies

The MGA is fully consistent with EU policies and will not require the EU to amend its rules,

regulations or standards in any regulated area, e.g. technical rules and product standards,

sanitary or phytosanitary rules, regulations on food and safety, health and safety standards,

rules on GMOs, environmental protection or consumer protection.

The MGA also includes a Chapter on Trade and Sustainable Development, which links the

Agreement to the EU’s overall objectives of sustainable development and specific objectives

in the areas of labour, environment, and climate change.

Furthermore, the MGA fully safeguards public services and ensures that the right of

governments to regulate in the public interest is fully preserved by the Agreement and

constitutes a basic underlying principle to it.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

• Procedural legal basis

In accordance to Article 218(6) of the Treaty on the Functioning of the European Union

(TFEU), where the agreement envisaged does not relate exclusively or principally to the

common foreign and security policy, the Commission shall submit a proposal to the Council.

The Council shall adopt a decision authorising the signing of the agreement.

Pursuant to Article 218(6) TFEU, where the agreement does not relate exclusively to the

CFSP, the Council can only take the decision concluding the agreement either after obtaining

the consent of the European Parliament (Article 218(6)(a) TFEU), or after consulting it

(Article 218(6)(b) TFEU).

Given that Article 91, Article 100(2), Article 207(4), first subparagraph, and Article 209(2)

TFEU are the substantive legal basis, the Council is to adopt the decision concluding the

agreement after obtaining the consent of the European Parliament.

Article 218(7) TFEU should also be added as a legal basis as it is appropriate for the Council

to authorise the Commission to approve the position of the Union on certain modifications to

the MGA. The Commission should be authorised to approve modifications or rectifications to

be adopted by the Joint Council pursuant to:

• Article 2.22(4) (Oenological Practices) as regards product definitions, oenological

practices and restrictions included in Part A and B of Annex 2-E (Relevant

Measures on Wine Products and Spirits).

• Article 2.24(8) (Certification of Wines Products and Spirits) as regards

documentation and certification referred to in Part D (Documentation and

Certification) of Annex 2-E (Relevant Measures on Wine Products and Spirits).

• Article 21.18 (Modification and Rectification of Coverage) as regards Annexes

21-A and 21-B which set out the commitments of each Party on covered

procurement.

• Article 25.35 (Amendment of the List of Geographical Indications) as regards

Annex 25-B (List of Geographical Indications) and Annexes I and II of the 1997

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Spirits Agreement, incoporated in this Agreement, which list the Geographical

Indications of the EU and Mexico.

Therefore, the procedural legal bases for the proposed decision on concluding the MGA is

Article 218(6), second subparagraph, point (a), TFEU, and Article 218(7) TFEU.

• Substantive legal basis

The MGA covers areas which fall within the scope of the common commercial policy,

transport, and development cooperation. The substantive legal bases of the proposed decision

should therefore be Articles 91, 100(2), 207(4), first subparagraph, and 209(2) TFEU.

Therefore, the legal bases of the proposed decision should be Article 91 TFEU, Article 100(2)

TFEU, Article 207(4), first subparagraph TFEU and Article 209(2) TFEU, in conjunction

with Article 218(6)(a) TFEU and Article 218 (7) TFEU.

Given the subject matter of the envisaged agreement, it is appropriate for the Commission to

submit the proposal to the Council.

• Subsidiarity (for non-exclusive competence)

On 4 May 2016, the Council authorised the European Commission and the High

Representative of the Union for Foreign Affairs and Security Policy to negotiate a modernised

agreement with Mexico to replace the Global Agreement. It was considered that action at

Union level was to be more effective than action at national level.

• Proportionality

This initiative directly pursues the objectives of the Union's external action and contributes to

the political priority of 'the EU as a stronger global actor’. It is in line with the EU Global

Strategy’s orientations to engage with other countries and to revamp the EU’s external

partnerships in a responsible way, in order to attain the EU's external priorities. It contributes

to the EU’s objectives on trade and economic and technical cooperation with third countries.

Negotiations for the MGA with Mexico were carried out in accordance with the negotiating

directives set out by the Council. The outcome of the negotiations does not go beyond what is

necessary to achieve the policy objectives set out in the negotiating directives.

• Choice of the instrument

This proposal for a Council decision is submitted in accordance with paragraph 6 of

Article 218 TFEU, which provides for the adoption by the Council of a decision concluding

an international agreement after the consent of the European Parliament. There is no other

legal instrument that could be used in order to achieve the objective expressed in this

proposal.

3. RESULTS OF EX POST EVALUATIONS, STAKEHOLDER

CONSULTATIONS AND IMPACT ASSESSMENTS

• Ex post evaluations/fitness checks of existing legislation

As regards the trade provisions, an assessment of six EU free-trade agreements (including

Mexico’s) commissioned by the Commission was carried out in February 2011. An ex post

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evaluation of the trade pillar of the existing Global Agreement and an ex ante assessment

looking at options for modernisation were completed in 2016.

The analysis of the Global Agreement demonstrated that, while the coverage of the existing

trade pillar was comprehensive at the time, there was scope for further improvements to the

rules and for achieving further market access. It also concluded that it was necessary to update

the Global Agreement to take account of developments in the global trade landscape.

• Stakeholder consultations

The contractor for the external studies undertaken in support of the modernisation organised

numerous consultation and outreach activities, including: (i) a dedicated website for

documents and activities linked to the studies; (ii) an online survey of stakeholders, launched

in October 2014; (iii) a local stakeholder workshop in Mexico, held in July 2015; and (iv)

personal interviews.

As part of the Impact Assessment, DG Trade consulted interested stakeholders about the

modernisation, including businesses, civil society stakeholders, non-governmental

organisations, trade unions, trade associations, chambers of commerce and other private

interests. These stakeholder consultations involved a number of different consultation

activities including an open public online consultation (launched in July 2015).

The external studies, the Impact Assessment and the consultations held in the context of its

preparation provided the Commission with input that has been of great value in the MGA

negotiations.

During the negotiations, meetings were also held to debrief civil society organisations on the

status of the negotiations and to exchange views on the modernisation (meetings in April and

November 2017 in Brussels and in July 2017 in Mexico City).

Negotiations were carried out in consultation with the Council’s Working Party on Latin

America and the Caribbean on the political and cooperation aspects of the Agreement, and in

consultation with the Trade Policy Committee on the trade aspects of the Agreement, as the

special committee designated by the Council in accordance with Article 218(4) TFEU. The

European Parliament and the European Economic and Social committee were also regularly

informed through the Committee on International Trade (INTA), notably its Monitoring

Group on Mexico, and the Committee on Foreign Affairs. The texts progressively resulting

from the negotiations were circulated throughout the process to both institutions.

• Collection and use of expertise

The ‘ex post evaluation of the implementation of the EU-Mexico Free Trade Agreement’ was

carried out by the external contractor ‘Ecorys’.

A ‘Sustainability Impact Assessment (SIA) in support of the negotiations for the

modernisation of the trade pillar of the Global Agreement with Mexico’ was carried out by

the external contractor ‘LSE Enterprise’.

• Impact assessment

The proposal was supported by an Impact Assessment published in January 2016 6 which

received a positive opinion 7.

6 http://ec.europa.eu/smart-regulation/impact/ia_carried_out/docs/ia_2015/swd_2015_0290_en.pdf. 7 http://ec.europa.eu/smart-regulation/impact/ia_carried_out/docs/ia_2015/sec_2015_0498_en.pdf.

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The Impact Assessment concluded that a comprehensive negotiation would deliver positive

benefits for both the EU and Mexico. Such benefits included increases in GDP, welfare and

exports, employment, wages (for both less skilled and more skilled employees),

competitiveness and an improved position for both the EU and Mexico in respect of other

global competitors. The inclusion of provisions on sustainable development would also have a

positive impact on the promotion and respect of human rights, on the effective

implementation of International Labour Organisation (ILO) core labour standards, and on the

progress towards ratification of the fundamental ILO Convention on the right to organise and

collective bargaining not yet ratified by Mexico.

Furthermore, the SIA carried out during the negotiations provides a comprehensive

assessment of the potential economic, social and environmental impacts of increased trade

liberalisation under the MGA in the EU and Mexico. The SIA also analyses the potential

impacts of the modernisation on human rights and on the manufacturing, agriculture and

services sectors. The terms of reference, interim report and final report are available on the

DG TRADE website:

http://ec.europa.eu/trade/policy/policy-making/analysis/policy-evaluation/sustainability-

impact-assessments/index_en.htm

The EU and Mexico have reached an ambitious agreement in line with the most recent trade

agreements such as those concluded by the EU with Canada, Japan, New Zealand and Chile.

The Agreement will open new opportunities for trade and investment in both markets and

support jobs in the EU.

The MGA will inter alia remove most of the customs duties, extend access to public

contracts, open up the services market, offer predictable conditions for investors and help

prevent illegal copying of EU innovations and traditional products. The MGA also contains

all the guarantees to ensure that the economic gains do not come at the expense of

fundamental rights, social standards, the right of governments to regulate, environmental

protection or consumers’ health and safety.

• Regulatory fitness and simplification

The MGA is not subject to REFIT procedures. It nevertheless contains a framework for

simplified trade and investment procedures, and reduced export- and investment-related costs,

and will therefore increase trade and investment opportunities for small and medium-sized

enterprises (SMEs). Among the expected benefits are (i) increased transparency; (ii) less

burdensome technical rules, compliance requirements, customs procedures and rules of

origin; (iii) enhanced protection of intellectual property rights and geographical indications;

(iv) investment protection; (v) better access to procurement tender procedures; and (vi) a

special chapter to enable SMEs to maximise the benefits from the Agreement.

• Fundamental rights

The proposal does not affect the protection of fundamental rights in the Union. On the

contrary, the Parties undertake to cooperate on the promotion and protection of human rights,

including with regard to the ratification and implementation of international human rights

instruments, and to strengthen democratic principles and the rule of law, promoting gender

equality and combatting discrimination in all its forms.

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4. BUDGETARY IMPLICATIONS

Modernising the trade pillar of the Global Agreement would have very limited effects on

national budgets and the EU budget, notably through the loss of own resources in the form of

foregone customs duties, as most of the customs duties are already eliminated under the

current Global Agreement. The loss from tariff revenue could be around EUR 18.75 million

based on current trade flows. Indirect positive impacts are expected in terms of increases in

resources linked to value added tax and gross national income.

5. OTHER ELEMENTS

• Implementation plans and monitoring, evaluation and reporting arrangements

The MGA includes institutional provisions that set up bodies tasked with monitoring its

implementation, operation and impact.

For the political and cooperation part, the MGA incorporates the EU-Mexico Summit as the

highest political level of dialogue. The institutional structure is composed of a Joint Council, a

Joint Committee, a Subcommittee for Development and International Cooperation, and a

Subcommittee on Anti-Corruption on Trade and Investment. The Joint Committee may set up

other subcommittees and bodies.

The Agreement also sets out the specific functions and tasks of the Joint Council and Joint

Committee in trade configuration, which will continuously monitor the implementation and

application of the trade and investment part of the Political, Economic and Cooperation

Strategic Partnership Agreement.

The Joint Committee will assist the Joint Council in the performance of its function regarding

trade-related matters and supervise the work of all subcommittees and other bodies set up

under the trade part of the Political, Economic and Cooperation Strategic Partnership

Agreement. The Joint Committee in trade configuration will be comprised of representatives

of the EU with responsibility for trade-related matters and representatives of the Ministry of

Economy of Mexico, who will meet every year or at the request of either side.

The following subcommittees and other bodies will be set up under the auspices of the Joint

Committee in trade configuration: (a) Committee on Trade in Goods; (b) Subcommittee on

Agriculture; (c) Subcommittee on Trade in Wine and Spirits; (d) Subcommittee on Customs

Trade Facilitation and Rules of Origin; (e) Subcommittee on Sanitary and Phytosanitary

Measures; (f) Joint Working Group on Animal Welfare and Antimicrobial Resistance; (g)

Subcommittee on Technical Barriers to Trade; (h) Subcommittee on Services and Investment;

(i) Subcommittee on Financial Services; (j) Subcommittee on Public Procurement; (k)

Subcommittee on Intellectual Property; (l) Subcommittee on Trade and Sustainable

Development.

• Explanatory documents (for directives)

Not applicable.

• Detailed explanation of the specific provisions of the proposal

The MGA broadens the scope of the current bilateral framework and adjusts it to the new

global political and economic challenges, to the new reality of the EU-Mexico partnership and

to the level of ambition of recently concluded agreements and negotiations conducted by the

EU and Mexico.

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The MGA creates a coherent, comprehensive, up-to-date and legally binding framework for

the EU’s relations with Mexico. It undertakes to establish a strengthened strategic partnership,

reinforce political dialogue and deepen and enhance cooperation on issues of mutual interest.

At the same time, the MGA will foster trade and investment by contributing to the expansion

and diversification of economic and trade relations.

For the first time, the MGA includes a civil society consultation mechanism extended to the

whole Agreement, to allow civil society on both sides to make its voice heard on all the

provisions in the Agreement, including the human rights provisions of the political part.

The MGA includes a review clause to allow certain specific elements of the Agreement to be

discussed again three years after its entry into force.

The MGA is divided into four parts. The objectives and general principles of the Agreement

are outlined in Part I (General Provisions). Respect for democratic principles, human rights

and fundamental freedoms, respect for the principle of the rule of law, and the clause on the

non-proliferation of weapons of mass destruction constitute essential elements of the MGA.

In Part II (Political Dialogue and Cooperation), the EU and Mexico undertake to deepen

dialogue and to cooperate in the following areas:

• political dialogue, international peace and security

• international and regional organisations

• freedom, security and justice

• sustainable development

• environment, climate change and energy

• agriculture, maritime affairs and fisheries

• economic policy

• education, culture and social issues

• research, innovation and digital economy.

Emphasis is put on a wide range of crucial issues, including rule of law, human rights and

gender equality, migration, drugs and transnational organised crime, environmental

protection, climate change, renewable energy, ocean governance, corporate social conduct,

digital transformation, and research and innovation. The provisions in Part II will allow for a

more coordinated and common action in new areas such as public health, state modernisation,

management of migration flows, non-proliferation of weapons of mass destruction, money

laundering, financing of terrorism and cybercrime.

This will translate into a stronger partnership at global level (e.g. on the Agenda 2030, action

against climate change, ocean governance) and on issues of global democratic governance,

human rights, migration, peace and security.

Part II also contains provisions to deepen the dialogue and cooperation on anti-corruption

matters. For the first time, the Agreement contains a Protocol that includes provisions to

combat and prevent corruption in trade and investment.

The provisions of this Protocol are intended to prevent corruption in trade and investment

through different measures, notably by promoting integrity in the private and public sector,

stepping up internal controls, external auditing and financial reporting, and strengthening the

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fight against corruption pursued already through international conventions, in particular the

United Nations Convention against Corruption (UNCAC).

In this regard, the Parties reiterate their commitment to make corruption a criminal offence for

government officials and to also consider making corruption an offence for businesses. The

two sides have agreed to certain disciplines to tackle money laundering.

The Protocol also promotes the active participation of civil society in the prevention and fight

against corruption. In addition, it provides for a consultation mechanism if there is

disagreement on the interpretation or implementation of the anti-corruption provisions.

In Part III (Trade and Investment), in line with the objectives set by the negotiating directives,

the MGA will seek to fulfil the aims listed below.

Provide important market access for agricultural and fisheries exports and improved

rules

Under the current Global Agreement, all industrial goods and a considerable amount of

agricultural and fisheries products had already been liberalised. With the modernisation, the

Chapter on Trade in Goods fully liberalises more than 98.7% of all tariff lines and removes

95% of the remaining Mexican tariffs on agricultural products.

The text on Trade in Goods also contains additional and more extensive rules that will

facilitate trade between the EU and Mexico. This includes provisions on fees and formalities,

import and export licensing, prohibition of export duties, and binding of tariffs for which full

duty elimination is not envisaged (standstill). It also contains new-generation provisions on

export competition, remanufacturing and goods entered after repair and provisions to facilitate

the temporary admission of goods.

Simplify Rules of Origin

The Rules of Origin (RoO) have been reviewed and, in some cases, simplified to take into

consideration the need of industry, for example, for key industrial products such as cars and

pharmaceuticals.

Modernise and simplify border procedures

The MGA contains an ambitious Chapter on Customs and Trade Facilitation based on the

provisions of the World Trade Organization Agreement on Trade Facilitation (TFA) and goes

even further in certain areas. The EU and Mexico undertake to apply simplified, modern and,

where possible, automated procedures for the efficient and expedited release of goods through

streamlined requirements on data and documentation, pre-arrival processing of customs

documentation and information, and effective and non-discriminatory risk management.

Ensure fair trade and business conditions

In order to be able to deal efficiently and effectively with unfair trading practices, improved

disciplines regarding trade remedies have been agreed. In addition, the MGA contains

provisions to protect domestic industries in the event that increased imports of a product

arising from the Agreement are causing, or risk causing, serious injury to that industry. The

MGA also contains a subsidy chapter which helps to level the playing field between EU and

Mexican companies through (i) increased transparency for subsidies to both goods and

services; (ii) consultations in case subsidies risk having a negative effect on trade; and (iii)

rules on the most harmful subsidies (restructuring aid without restructuring plan and unlimited

guarantees).

The MGA also ensures that companies respect the basic competition principles: no abuse of a

dominant position, no agreements between companies that restrict competition, and scrutiny

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of the competitive effects of a merger. At the same time, the MGA will ensure a level playing

field between public and private companies on the market. State-owned enterprises,

enterprises granted special rights or privileges, and designated monopolies must act in a non-

discriminatory manner and in line with commercial considerations when buying and selling

goods and services on the market.

Enhance trade and investment in critical raw materials

The MGA maintains tariff-free trade of critical raw materials, securing cheaper access and

reduced costs for these materials essential for the EU’s green and digital transitions.

Moreover, the new agreement will prohibit export monopolies and unjustified government

intervention in the price setting of raw materials and will ban export or dual pricing where

export prices are set above domestic prices. There are also specific provisions laid down for

cooperation with Mexico in the raw materials value-chains.

Ensure sustainability and gender equality

The MGA contains an ambitious and comprehensive Chapter on Trade and Sustainable

Development, to better integrate sustainable development into the Parties’ trade and

investment relationship through (i) legally binding commitments on environmental protection,

climate change and labour rights; (ii) provisions on cooperation and dialogue including with

civil society; and (iii) dispute settlement procedures. This chapter also includes a review

clause which requires the Parties to discuss possible further improvements of the

sustainability provisions, including providing for countermeasures in the event of breaches

and the possibility to consider including the Paris Agreement as an essential element of the

MGA. The review will be launched when the Agreement enters into force and should be

concluded within 12 months.

The Parties have also agreed on a Joint Declaration on trade and gender equality which

includes provisions on the effective implementation of the international obligations

addressing gender equality and women’s rights, and to strengthen cooperation on trade-related

aspects of gender equality policies and measures. The Joint Declaration forms an integral part

of the Agreement.

Focus on the needs of smaller businesses

The MGA requires the EU and Mexico to set up a website for SMEs which will make it easier

for SMEs to access information and therefore benefit from all the provisions of the

Agreement. Contact points in the EU and Mexico will work together to take into account the

specific needs of SMEs and identify ways they can take advantage of new opportunities in

each market.

Provide opportunities for service suppliers and rules for digital trade

The MGA contains comprehensive disciplines covering market access for services and

investment in all sectors of the economy, and specific disciplines covering digital trade. It

aims to create a level playing field especially for EU service suppliers involved in sectors

such as telecommunications and financial services, as well as in areas such as delivery

services and maritime services. The MGA also provides a framework for the Parties to

recognise each other’s qualifications in regulated professions such as architects, accountants,

lawyers and engineers in the future. In digital trade, the Agreement establishes disciplines that

apply horizontally (to online trade in goods, services, etc.) and that are indispensable for the

proper functioning of trade online.

Encourage investment

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The MGA contains provisions liberalising investment, following the same approach as that set

out in the most ambitious EU trade agreements concluded so far. In particular, all substantive

disciplines under this chapter will apply to both services and non-services sectors. In

particular, investors and their investments will be able to benefit from (i) the commitment to

provide non-discriminatory treatment in comparison with domestic or third country investors

and investments; (ii) the ambitious disciplines for market access (addressing quantitative

restrictions such as monopolies and exclusive rights, quotas, and economic needs tests); and

(iii) the prohibition of certain performance requirements. On the energy sector, the MGA

ensures that the Most Favoured Nation principle will be applied in the case of both past and

future free trade agreements that Mexico has entered or will enter into. The agreement

therefore ensures that EU investors will be treated on a par with investors from Mexico’s

other preferential trading partners.

Ensure a transparent and accountable resolution of disputes through an Investment

Court System

The MGA includes all the innovations of the EU’s new approach on investment and its

dispute settlement mechanism, thus meeting stakeholders’ expectations for a fairer, more

transparent and institutionalised system for the settlement of investment disputes. It

introduces important innovations in this field, ensuring a high level of protection for investors

while fully preserving the right of governments to regulate and pursue legitimate public policy

objectives such as the protection of health, safety or the environment. It removes ambiguities

that made the old system open to abuses or excessive interpretations and creates an

independent investment court system, consisting of a permanent tribunal and an appeal

tribunal that will conduct dispute settlement proceedings in a transparent and impartial

manner.

Provide access to Mexican public tenders

The MGA provides for more opportunities for bidders for public procurement contracts.

Mexico has opened up its government tenders to EU companies to a greater extent than to any

of its other trading partners. EU companies will be able to bid to provide goods and services

not only at federal level but also to the most economically important Mexican states, being the

first non-Mexican companies to be able to do so. The EU and Mexico also undertake to

subject their public procurement procedures to a modern set of rules, applying high standards

of transparency, non-discrimination and equal treatment.

Set better protection for innovation and creative works

The MGA creates a level playing field by ensuring that Mexico and the EU also follow a

common approach on enforcing Intellectual Property Rights (IPRs) and by ensuring that both

sides will take action to fight against counterfeiting, piracy and uncompetitive practices. It

ensures a high level of protection and enforcement of IPRs. It also includes the reciprocal

protection of a selected list of Geographical Indications (GIs) of the EU and Mexico. In the

case of the EU, 336 EU GIs will be protected. This is in addition to the EU spirits GIs already

protected under the 1997 EU- Mexico Spirit Agreement, which is incorporated and made part

of the MGA and will enjoy the same level of protection.

Ensure that safe agri-food products are traded without any unnecessary SPS constraints

The MGA includes a comprehensive Chapter on Sanitary and Phytosanitary matters (SPS),

providing many specific trade facilitation measures (including the elimination of pre-

clearance). This should enable faster yet safe trade. Both the EU and Mexico keep their right

to set the level of protection they consider appropriate.

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Ensure that technical regulations, standards and conformity assessment procedures are

non-discriminatory and do not create unnecessary obstacles to trade

The MGA reiterates the commitment of the EU and Mexico to base their technical regulations

on international standards and to agree on an open list of international standards-setting

organisations. On conformity assessment, the MGA recognises the different approaches of the

Parties to conformity assessment and their relevant trade facilitation measures: for the EU the

use of the supplier’s declaration of conformity and for Mexico the recognition of product

certification carried out in the EU.

Ensure transparency and good regulatory practices

The MGA includes a Chapter on Transparency with ambitious provisions on the publication,

administration, and review and appeal of measures of general application related to trade

matters, and a chapter that lays down a set of good regulatory practices that the EU and

Mexico will use when developing regulations.

Implement modern procedures on state-to-state dispute settlement

The MGA includes a Chapter on State-to-State Dispute Settlement that lays down effective

and transparent modern procedures grounded in due process to prevent and solve any disputes

between Mexico and the EU.

The institutional structure of the relations is set out in Part IV (Institutional and Final

Provisions). Part IV builds on existing arrangements and incorporates the EU-Mexico Summit

as the highest political level of dialogue. The institutional structure is composed of a Joint

Council, which oversees the fulfilment of the MGA’s objectives and supervises its

implementation, and a Joint Committee, which assists the Joint Council in the performance of

its duties and will be responsible for the general implementation of the MGA, including the

definition and supervision of the sectoral dialogues.

The Joint Committee may set up subcommittees and other bodies to assist in the exercise of

its functions and to address specific tasks or subject matters.

The Joint Parliamentary Committee will be the forum to meet and exchange views and to

foster relations between members of the European Parliament and members of the Congress

of Mexico. Each Party shall create one or more domestic advisory groups to advise the Party

concerned on issues covered by the Agreement. In addition, a Civil Society Forum will be set

up to provide space for public dialogue on matters of relevance to this Agreement.

EN 13 EN

2025/0810 (NLE)

Proposal for a

COUNCIL DECISION

on the conclusion, on behalf of the European Union, of the Political, Economic and

Cooperation Strategic Partnership Agreement between the European Union and its

Member States, of the one part, and the United Mexican States, of the other part

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular

Article 91, Article 100(2), Article 207(4), first subparagraph and Article 209(2), in

conjunction with Article 218(6), second subparagraph, point (a), and Article 218(7) thereof,

Having regard to the proposal from the European Commission,

Having regard to the consent of the European Parliament8,

Whereas:

(1) In accordance with the Council Decision [number of Decision] of [date], the EU-

Mexico Global Agreement (‘the Agreement’) was signed at [place] on [date], subject

to its conclusion at a later date and has been provisionally applied from … , pending

its entry into force.

(2) Pursuant to Article 218(7) of the TFEU, it is appropriate for the Council to authorise

the Commission to approve on the Union’s behalf certain modifications to the

Agreement.

(3) In accordance with Article 2.11 of Chapter 2 of Part IV of the Agreement, nothing in

the Agreement shall be construed in the Union as conferring rights or imposing

obligations on persons other than those created between the Parties under public

international law. The Agreement therefore cannot be directly invoked before the

courts of the Union or of the Member States.

(4) The Agreement should be approved,

HAS ADOPTED THIS DECISION:

Article 1

The Political, Economic and Cooperation Strategic Partnership Agreement between the

European Union and its Member States, of the one part, and the United Mexican States, of the

other part, is hereby approved on behalf of the Union. *

8 OJ C , , p. . * The text of the Agreement is published in OJ L, XXXXX, ELI

EN 14 EN

Article 2

For the purposes of Article 21.18 of Part III the Agreement, the position of the Union on the

modifications or rectifications to commitments under Annexes 21-A and 21-B to the

Agreement shall be taken by the Commission.

Article 3

Decisions of the Joint Council pursuant to Article 25.35 of Part III of the Agreement

modifying the list of geographical indications under Annex 25-B of the Agreement and

Annexes I and II of the 1997 Spirits Agreement incorporated in the Agreement pursuant to

Article 25.41 shall be approved by the Commission on behalf of the Union. Where interested

parties cannot reach agreement following objections relating to a geographical indication, the

Commission shall adopt a position on the basis of the procedure laid down in Article 57(2) of

Regulation (EU) No 1151/2012 of the European Parliament and of the Council.

Article4

Decisions of the Joint Council pursuant to Articles 2.22(4) and 2.24(8) of Part III of the

Agreement modifying product definitions, oenological practices and restrictions under Part A

and B of Annex 2-E of the Agreement and documentation and certification under Part D of

Annex 2-E, respectively, shall be approved by the Commission on behalf of the Union.

Article 5

The Agreement shall not be construed as conferring rights or imposing obligations which can

be directly invoked before Union or Member States courts or tribunals.

Article 6

This Decision shall enter into force on .

Done at Brussels,

For the Council

The President

EN 15 EN

LEGISLATIVE FINANCIAL STATEMENT ‘REVENUE’- FOR PROPOSALS

HAVING BUDGETARY IMPACT ON THE REVENUE SIDE OF THE BUDGET

1. NAME OF THE PROPOSAL:

Proposal for a Council Decision on the conclusion of the Political, Economic and

Cooperation Strategic Partnership Agreement (MGA) between the European Union

and its Member States and the United Mexican States.

2. BUDGET LINES:

Revenue line (Chapter/Article/Item): Chapter 12, Article 120

Amount budgeted for the year concerned (2025): EUR 21 082 004 566

(only in case of assigned revenues):

The revenues will be assigned to the following expenditure line

(Chapter/Article/Item):

3. FINANCIAL IMPACT

 Proposal has no financial implications

X Proposal has no financial impact on expenditure but has a financial impact on

revenue

 Proposal has a financial impact on assigned revenue

The effect is as follows:

(EUR million to one decimal place)

Revenue line Impact on revenue 12 months Year 2026

Chapter 12/Article 120 EUR 18.75 mn Entry into force expected

beginning 2026

0

Chapter 12/Article/120

Situation following action

Revenue line [N+15] [N+16] [N+17] [N+18] [N+19]

Chapter 12/Article 120 EUR 1

billion

EUR 1

billion

EUR 1

billion

EUR 1

billion

EUR 1

billion

Chapter/Article/Item …

(Only in case of assigned revenues, under the condition that the budget line is already

known):

EN 16 EN

Expenditure line9 Year N Year N+1

Chapter/Article/Item

…

Chapter/Article/Item

…

Expenditure line [N+2] [N+3] [N+4] [N+5]

Chapter/Article/Item

…

Chapter/Article/Item

…

4. ANTI-FRAUD MEASURES

5. OTHER REMARKS

The proposed Regulation does not incur additional costs (expenditure) in the EU

budget.

The MGA will have a financial impact on the EU budget on the side of the revenues.

The MGA will lead to an estimated loss of duties of EUR 18.75 million at the entry

into force of the Agreement.10

Indirect positive impacts are expected in terms of increases in resources linked to

value added tax and gross national income.

9 To be used only if necessary. 10 The estimated amount of revenue losses at EUR 18.75 mn is net of collection costs (a 25% has been

deducted from the estimated revenue loss of EUR 25 mn).

EN EN

EUROPEAN COMMISSION

Brussels, 3.9.2025

COM(2025) 810 final

ANNEX 1 – PART 1/4

ANNEXES

to the

Proposal for a COUNCIL DECISION

on the conclusion, on behalf of the European Union, of the Political, Economic and

Cooperation Strategic Partnership Agreement between the European Union and its

Member States, of the one part, and the United Mexican States, of the other part

& /en 1

POLITICAL, ECONOMIC AND COOPERATION

STRATEGIC PARTNERSHIP AGREEMENT

BETWEEN THE EUROPEAN UNION

AND ITS MEMBER STATES, OF THE ONE PART,

AND THE UNITED MEXICAN STATES, OF THE OTHER PART

& /en 2

PREAMBLE

THE KINGDOM OF BELGIUM,

THE REPUBLIC OF BULGARIA,

THE CZECH REPUBLIC,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE REPUBLIC OF ESTONIA,

IRELAND,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

THE REPUBLIC OF CROATIA,

& /en 3

THE ITALIAN REPUBLIC,

THE REPUBLIC OF CYPRUS,

THE REPUBLIC OF LATVIA,

THE REPUBLIC OF LITHUANIA,

THE GRAND DUCHY OF LUXEMBOURG,

HUNGARY,

THE REPUBLIC OF MALTA,

THE KINGDOM OF THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE REPUBLIC OF POLAND,

THE PORTUGUESE REPUBLIC,

ROMANIA,

& /en 4

THE REPUBLIC OF SLOVENIA,

THE SLOVAK REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

Contracting Parties to the Treaty on European Union and the Treaty on the Functioning of the

European Union, hereinafter referred to as the "Member States",

THE EUROPEAN UNION, hereinafter referred to as "the Union" or "the EU",

of the one part, and

the United Mexican States, hereinafter referred to as "Mexico",

of the other part,

hereinafter jointly referred to as "the Parties",

CONSIDERING the strong cultural, political and economic ties which unite them;

& /en 5

REAFFIRMING their commitment to democratic principles, the rule of law, human rights

and fundamental freedoms, and to countering proliferation of weapons of mass destruction,

which constitute the basis for their partnership and cooperation;

MINDFUL of the significant contribution to strengthen those ties made by the Economic

Partnership, Political Coordination and Cooperation Agreement between the European

Community and its Member States, of the one part, and the United Mexican States, of the

other part, signed in Brussels on 8 December 1997;

CONSIDERING their joint commitment expressed in the Santiago Declaration of 27 January

2013 to modernise and replace the existing Economic Partnership, Political Coordination and

Cooperation Agreement to reflect new political and economic realities and the advancements

made in their strategic partnership;

CONSIDERING that the Interim Agreement on Trade between the European Union and the

United Mexican States (hereinafter “EU-Mexico Interim Agreement on Trade”), establishing

a free trade area between the EU and Mexico, was signed on [X];

EMPHASISING the comprehensive nature of their relationship and the importance of

providing a coherent framework for its further promotion;

AFFIRMING their status as strategic partners and their determination to further enhance and

deepen their partnership and their international cooperation and dialogue in order to advance

their shared interests and values;

& /en 6

AFFIRMING their commitment to strengthen cooperation on bilateral, regional, bi-regional,

and international issues of common concern;

ACKNOWLEDGING the importance of a strong and effective multilateral system, based

upon international law, in preserving peace, preventing conflicts and strengthening

international security and in tackling common challenges;

REAFFIRMING their commitment to expand and diversify their trade relation in conformity

with the Marrakesh Agreement Establishing the World Trade Organization (hereinafter

referred to as the "WTO Agreement") and the specific objectives and provisions set out in

Part III of this Agreement;

CONVINCED that this Agreement will create a climate conducive to growing sustainable

economic relations between them, in particular in terms of trade and investment, which are

essential to the realisation of economic and social development and technological innovation

and modernisation;

RECOGNISING that the provisions of this Agreement protect investments and investors, and

are intended to stimulate mutually-beneficial business activity without undermining the right

of the Parties to regulate in the public interest within their territories;

& /en 7

WELCOMING the adoption of the Resolution 70/1 adopted by the General Assembly of the

United Nations on 25 September 2015 containing the outcome document "Transforming our

world: the 2030 Agenda for Sustainable Development" (hereinafter referred to as the "2030

Agenda"), the Paris Agreement under the United Nations Framework Convention on Climate

Change, done at Paris on 12 December 2015 (hereinafter referred to as the "Paris

Agreement"), as well as the Sendai Framework for Disaster Risk Reduction 2015-2030,

adopted at the Third UN World Conference in Sendai on 18 March 2015, the Addis Ababa

Action Agenda of the Third International Conference on Financing for Development, adopted

at Addis Ababa on 13-16 July 2015, the World Humanitarian Summit Commitments, adopted

at the World Humanitarian Summit in Istanbul on 23-24 May 2016, and the New Urban

Agenda, adopted during the UN Conference on Housing and Sustainable Urban Development

(Habitat III) in Quito on 20 October 2016 (hereinafter referred to as the "New Urban

Agenda"), and calling for their swift implementation;

REAFFIRMING their commitment to overcome global challenges by promoting sustainable

development in its economic, social and environmental dimensions, by contributing to the

achievement of the Sustainable Development Goals (hereinafter referred to as the "SDGs")

and targets of the 2030 Agenda;

AFFIRMING their commitment to strengthen cooperation in the field of justice, human

rights, freedom and security;

RECOGNISING the mutual benefits of enhanced cooperation in the areas of education,

culture, research and innovation and other areas of common interest;

& /en 8

REAFFIRMING their commitment to promote international trade in such a way as to

contribute to sustainable development in its economic, social and environment dimensions,

through partnerships involving all relevant stakeholders, including civil society and the

private sector, and to implement this Agreement in a manner consistent with their respective

laws and international labour and environmental commitments;

RECOGNISING the importance of strengthening their economic, trade and investment

relations, and of promoting the liberalisation of trade and investment between them, to bring

economic growth, create new opportunities for workers and the business communities of each

Party, in particular small and medium-sized enterprises;

RECOGNISING that this Agreement contributes to enhancing consumer welfare and to

ensuring a high level of living standards and consumer protection;

ENCOURAGING enterprises operating within their territory or subject to their jurisdiction to

respect internationally recognised guidelines and principles of corporate social responsibility,

including the OECD Guidelines for Multinational Enterprises, and to pursue best practices of

responsible business conduct;

RECOGNISING that the provisions of this Agreement preserve the right of the Parties to

regulate within their territories in conformity with their internal legislation and the Parties'

flexibility to achieve legitimate policy objectives, such as public health, safety, environment,

public morals and the promotion and protection of cultural diversity, among others;

& /en 9

RECOGNISING the importance of transparency, good governance and the rule of law in

international trade and investment to the benefit of all stakeholders;

RESOLVED to contribute to the harmonious development and expansion of international

trade and investment by removing obstacles thereto through this Agreement and to avoid

creating new barriers to trade or investment between the Parties that could reduce the benefits

of this Agreement;

NOTING that in case the Parties decide, within the framework of this Agreement, to enter

into specific agreements in the area of freedom, security and justice which may be concluded

by the Union pursuant to Title V of Part Three of the Treaty on the Functioning of the

European Union ("TFEU"), the provisions of such future specific agreements would not bind

Ireland unless the Union, simultaneously with Ireland as regards their respective previous

bilateral relations, notifies Mexico that Ireland has/have become bound by such future

specific agreements as part of the Union in accordance with Protocol No 21 on the position of

Ireland in respect of the area of freedom, security and justice, annexed to the Treaty on

European Union ("TEU") and to the TFEU. Likewise, any subsequent internal measures of

the Union which may be adopted pursuant to Title V of Part Three TFEU to implement this

Agreement would not bind the Ireland, unless they have notified their wish to take part in

such measures or accept them in accordance with Protocol No 21. Also noting that, such

future specific agreements or subsequent internal measures of the Union would fall within

Protocol No 22 on the position of Denmark annexed to the TEU and TFEU,

HAVE AGREED AS FOLLOWS:

& /en 10

PART I1

GENERAL PROVISIONS

ARTICLE 1

Objectives of the Agreement

The objectives of this Agreement shall be to:

(a) establish a strengthened strategic partnership, reinforce political dialogue, and deepen

and enhance cooperation on issues of mutual interest;

(b) foster increased trade and investment between the Parties by expanding and

diversifying their economic and trade relations, which should contribute to higher and

more sustainable economic growth and an improved quality of life.

1 Where a provision of this Part contains a reference to another provision of this

Agreement, that reference is to another provision of this Part, unless explicitly indicated

otherwise.

& /en 11

ARTICLE 2

General Principles

1. Respect for democratic principles and human rights and fundamental freedoms, as

laid down in the Universal Declaration of Human Rights and other relevant international

human rights instruments to which they are party, and for the principle of the rule of law,

underpins the internal and international policies of both Parties and constitutes an essential

element of this Agreement.

2. The Parties confirm their strong support for the principles of the Charter of the United

Nations (hereinafter referred to as the "UN").

3. The Parties share the view that the proliferation of weapons of mass destruction and

their means of delivery to both state and non-state actors pose a major threat to international

stability and security.

4. The Parties recognise that the uncontrolled movement of conventional arms is a threat

to international and regional peace, security and stability and also recognise the need to

cooperate to ensure the responsible transfer of conventional arms.

5. The Parties reaffirm their commitment to the promotion of sustainable development in

all its dimensions, contributing to the attainment of internationally agreed sustainable

development goals, and to cooperation in order to address global environmental challenges.

& /en 12

6. The Parties confirm their commitment to gender equality and the empowerment of

women and girls.

7. The Parties reaffirm their commitment to combatting discrimination on any ground,

including gender, racial or ethnic origin, religion or belief, disability, age or sexual

orientation.

8. The Parties confirm their commitment to implement this Agreement based on shared

values including the principles of dialogue, mutual respect, equal partnership, multilateralism,

cooperation and respect for international law.

& /en 13

PART II2

POLITICAL DIALOGUE AND COOPERATION

CHAPTER 1

POLITICAL DIALOGUE, INTERNATIONAL PEACE AND SECURITY

ARTICLE 1.1

Political Dialogue

1. The Parties shall strengthen their political dialogue and cooperation at all levels,

through exchanges and consultations on bilateral, regional, bi-regional, international and

multilateral issues.

2. The political dialogue shall aim to:

(a) promote the development of bilateral relations and strengthen the strategic partnership;

(b) strengthen cooperation on regional, bi-regional, and international challenges and issues.

2 Where a provision of this Part contains a reference to another provision of this

Agreement, that reference is to another provision of this Part, unless explicitly indicated

otherwise.

& /en 14

3. The political dialogue between the Parties may take place in the following forms, as

mutually agreed:

(a) consultations, meetings and visits at summit level;

(b) consultations, meetings and visits at ministerial level;

(c) regular senior officials meetings, including a High Level Political Dialogue;

(d) sectorial dialogues on issues of common interest;

(e) exchanges of delegations and other contacts between the Congress of Mexico and the

European Parliament;

(f) any other form agreed to by the Parties.

ARTICLE 1.2

Democratic Principles, Human Rights and the Rule of Law

1. The Parties shall cooperate on the promotion and protection of human rights,

including with regard to the ratification and implementation of international human rights

instruments, and on the strengthening of democratic principles and the rule of law, promoting

gender equality and combatting discrimination in all its forms.

& /en 15

2. Such cooperation may include:

(a) fostering a meaningful, broad-based human rights dialogue;

(b) supporting the development and implementation of action plans on human rights;

(c) promoting human rights, including through education and cooperation;

(d) strengthening national and regional human rights-related institutions;

(e) enhancing cooperation with the UN Human Rights Treaty Bodies and the Special

Procedures of the Human Rights Council to implement their recommendations;

(f) enhancing cooperation within the human rights-related institutions of the UN and

relevant regional and multilateral fora;

(g) strengthening their capacity to apply democratic principles and practices;

(h) reinforcing good, independent and transparent governance at the local, national,

regional and global levels, promoting accountability and transparency of institutions

and supporting participation of citizens and the involvement of civil society;

(i) collaborating and coordinating, where appropriate, including in third countries, to

reinforce democratic principles, human rights and the rule of law;

& /en 16

(j) fostering the universality of international human rights treaties and encouraging other

States to implement their obligations in this area;

(k) working to prevent impunity for human rights violations.

ARTICLE 1.3

Gender Equality and Women's Empowerment, Peace,

Security and Sustainable Development

1. The Parties shall promote gender equality and the empowerment of women. They

acknowledge the necessity of gender equality and the empowerment of women and girls as a

precondition to fully achieving sustainable and inclusive development, democracy and

security. The Parties shall explore further schemes of cooperation and potential synergies

between respective policies and initiatives, in line with international standards and

commitments such as the Convention on the Elimination of All Forms of Discrimination

against Women, adopted by the UN General Assembly on 18 December 1979 (CEDAW), the

general recommendations made by the UN Committee on the Elimination of Discrimination

against Women, the 2030 Agenda and UN Security Council Resolution 1325 (2000) and

subsequent UN Security Council Resolutions on Women, Peace and Security.

& /en 17

2. Such cooperation may include:

(a) fostering effective gender mainstreaming;

(b) supporting the development and implementation of a national action plan on UN

Security Council Resolution 1325 (2000);

(c) promoting women's political participation and leadership, as well as their access to

quality education, their economic empowerment and leadership, and their increased

participation in the workforce;

(d) strengthening national and regional institutions through specific measures to address

and handle issues related to violence against women and girls, including prevention and

protection from sexual and gender-based violence, investigation and accountability

mechanisms, support to victims and promotion of conditions of safety and security for

women and girls;

(e) actively reinforcing the protection of women human rights, including from any type of

discrimination and violence against them and ensuring their access to justice;

(f) enhancing cooperation with relevant bodies of the UN and other international

organisations;

(g) actively promoting gender analysis and the systematic integration of gender perspective

in all matters related to peace and security while ensuring women's leadership and

meaningful participation in peace processes, mediation efforts, conflict resolution and

peace building as well as civilian and military missions and operations.

& /en 18

ARTICLE 1.4

Countering Proliferation of Weapons of Mass Destruction

1. The Parties consider that the proliferation of weapons of mass destruction and their

means of delivery, both to state and non-state actors, represents one of the most serious

threats to international stability and security. The Parties shall therefore cooperate and

contribute to countering the proliferation of weapons of mass destruction and their means of

delivery through full compliance with and national implementation of their existing

obligations under international disarmament and non-proliferation treaties and agreements

and other relevant international obligations. The Parties agree that this provision constitutes

an essential element of this Agreement.

2. The Parties shall cooperate and contribute to countering the proliferation of weapons

of mass destruction and their means of delivery by:

(a) taking steps to sign, ratify, or accede to, as appropriate, and fully implement relevant

international instruments;

(b) establishing and maintaining an effective system of national export controls, controlling

the export as well as the transit of WMD related goods, including a WMD end-use

control on dual use technologies and effective sanctions for breaches of export controls.

3. The Parties shall establish a regular political dialogue to accompany and consolidate

these elements.

& /en 19

ARTICLE 1.5

Small Arms and Light Weapons and other Conventional Weapons

1. The Parties recognise that the illicit manufacture, transfer and circulation of small

arms and light weapons (SALW), including their ammunition, parts and components, and

their illicit accumulation, poor management, inadequately secured stockpiles and

uncontrolled spread continue to pose a serious threat to peace and international security.

2. The Parties shall observe and fully implement their respective obligations to deal with

the illicit trade in SALW, including their ammunition, parts and components, under existing

international agreements and UN Security Council resolutions, as well as their commitments

within the framework of other international instruments applicable in this area, such as the

UN Programme of Action to Prevent, Combat and Eradicate the Illicit Trade in Small Arms

and Light Weapons in All Its Aspects.

3. The Parties recognise the importance of domestic control systems for the transfer of

conventional arms in line with existing international standards. The Parties recognise the

importance of applying such controls in a responsible manner, as a contribution to

international and regional peace, security and stability, and to the reduction of human

suffering, as well as to the prevention of diversion of conventional weapons.

& /en 20

4. The Parties shall fully implement the Arms Trade Treaty, adopted in New York

on 2 April 2013 (hereinafter referred to as the "ATT"), and cooperate with each other within

the framework of the ATT, including in promoting the universalisation of the ATT to all UN

Member States and full implementation by all State Parties.

5. The Parties shall cooperate and ensure coordination, complementarity and synergy in

their efforts to regulate or improve the regulation of international trade in conventional arms

and to prevent, combat and eradicate the illicit trade in conventional arms, including their

ammunition, parts and components.

6. The Parties shall establish a regular political dialogue to accompany and consolidate

the matters covered by this Article.

ARTICLE 1.6

International Criminal Court

1. The Parties recognise that the most serious crimes of concern to the international

community must not go unpunished and they shall endeavour to ensure that those crimes are

effectively investigated and prosecuted by taking measures at the national level and by

enhancing international cooperation, including with the International Criminal Court

(hereinafter referred to as the "ICC").

& /en 21

2. The Parties shall promote the universal ratification or accession to the Rome Statute

of the International Criminal Court (hereinafter referred to as "the Rome Statute"), and shall

work towards its effective domestic implementation by States Parties to the ICC. The Parties

shall exchange, as appropriate, best practices on the adoption of domestic laws and take

measures to safeguard the integrity of the Rome Statute.

ARTICLE 1.7

Counter-Terrorism

The Parties reaffirm the importance of the fight against terrorism and, in accordance with

international conventions, the relevant UN resolutions and their respective laws and

regulations, shall cooperate, as mutually agreed, in the prevention and suppression of acts of

terrorism. They shall do so in particular:

(a) in the framework of full and effective implementation of UN Security Council

Resolution 1373 (2001) and other relevant UN resolutions and international

instruments;

(b) by promoting cooperation among UN Member States to effectively implement the

UN Global Counter-Terrorism Strategy adopted by the UN General Assembly

on 8 September 2006;

& /en 22

(c) by exchanging information on terrorist groups and their support networks in accordance

with international and domestic law; and

(d) by exchanging experiences on the means and methods used to prevent and counter

terrorism, including technical knowledge and training and by exchanging best practices

in terrorism prevention.

ARTICLE 1.8

Peacekeeping and Crisis Management

The Parties shall cooperate in promoting peace and international security. They shall explore

possibilities to coordinate crisis management activities, including cooperation in crisis

management operations.

ARTICLE 1.9

Citizen Security

The Parties shall promote dialogue and cooperation on citizen security. They acknowledge

that citizen security has a national, transnational, regional and bi-regional dimension which

requires a broader dialogue and cooperation.

& /en 23

CHAPTER 2

COOPERATION IN INTERNATIONAL AND REGIONAL ORGANISATIONS

ARTICLE 2.1

International Organisations

1. The Parties shall promote multilateralism and shall cooperate by exchanging views

and, where appropriate, coordinating positions in international organisations and fora,

including the UN and its specialised agencies, the World Trade Organization (hereinafter

referred to as the "WTO"), the Group of Twenty (hereinafter referred to as "G20"), and the

Organisation for Economic Cooperation and Development (hereinafter referred to as the

"OECD").

2. The Parties shall maintain effective consultation mechanisms in the margins of

multilateral fora. The Parties shall maintain open and continuous dialogue at the UN Human

Rights Council, the UN General Assembly and, as appropriate and agreed by the Parties, in

other organs and specialised agencies of the UN.

& /en 24

ARTICLE 2.2

Regional Organisations

1. The Parties shall cooperate by exchanging views on issues of mutual interest, and,

where appropriate, by sharing information on positions in regional and sub-regional

organisations and fora.

2. The Parties shall promote bi-regional dialogue and cooperation, including in the

framework of the cooperation between the Union and the Community of Latin American and

Caribbean States (hereinafter referred to as "CELAC"). Cooperation may, as appropriate,

include support for CELAC integration and community building.

3. The Parties shall promote cooperation in the Pacific Alliance, through its framework

for observer states.

4. The Parties shall promote regional and triangular cooperation with third countries,

mainly in Central America and the Caribbean.

& /en 25

CHAPTER 3

FREEDOM, SECURITY AND JUSTICE

ARTICLE 3.1

Legal and Judicial Cooperation

1. The Parties shall enhance existing cooperation on mutual legal assistance and

extradition based on relevant international agreements. The Parties shall strengthen existing

mechanisms and, as appropriate, consider the development of new mechanisms to facilitate

international cooperation in this area. Such cooperation shall include taking steps to sign,

ratify, or accede to, as appropriate, and fully implement relevant international instruments,

and closer cooperation with Eurojust.

2. The Parties shall develop judicial cooperation in civil and commercial matters, in

particular, as regards the negotiation, ratification and implementation of multilateral

conventions on civil judicial cooperation, including the Conventions of The Hague

Conference on Private International Law in the field of international legal cooperation and

litigation as well as the protection of children.

& /en 26

ARTICLE 3.2

Law Enforcement and the Prevention and Fight Against Corruption and

Transnational Organised Crime

1. The Parties shall cooperate and exchange views on preventing and combatting

transnational organised crime, trafficking in persons, smuggling of migrants, trafficking of

firearms, including their ammunition, their parts and components, economic and financial

crimes, the world drug problem, corruption, and counterfeiting of means of payment in

accordance with their respective legislation and international obligations, including as regards

mutual legal assistance, exchange of information, best practices and training, and the

recovery of assets or funds derived from criminal activities.

2. The Parties shall continue their dialogue and cooperation on law enforcement,

including through strategic cooperation with Europol, as well as their strategic judicial

cooperation, including through Eurojust and, when relevant, with other national and

international institutions.

3. The Parties shall endeavour to collaborate in international fora to promote, as

appropriate, adherence to and the implementation of the United Nations Convention against

Transnational Organized Crime, adopted on 15 November 2000 by the UN Resolution 55/25

(hereinafter referred to as the "Palermo Convention") and the Protocols thereto.

& /en 27

4. The Parties shall promote the implementation of the United Nations Convention

against Corruption, adopted on 31 October 2003 by the UN Resolution 58/4 and support the

Mechanism for the Review of Implementation of the United Nations Convention against

Corruption established by the Conference of the States Parties to the UN Convention against

Corruption in Doha, 9-13 November 2009 (hereinafter referred to as the "Implementation

Review Mechanism"), including by adhering to the principle of transparency and the

participation of civil society in the Implementation Review Mechanism.

5. The Parties recognise the importance of fighting corruption in international trade and

investment and, to that end, commit to the Protocol on the Prevention and Fight against

Corruption which is annexed to this Agreement.

ARTICLE 3.3

Migration, Asylum and Border Management

1. The Parties shall cooperate and exchange experiences and information on migration

issues, within the framework of their respective laws, regulations and competences, including

regular and irregular migration, countering migrant smuggling and trafficking in persons,

migration and development, asylum, readmission, integration, visas, facilitate regular

migration, migratory control, and border management. The Parties shall exchange best

practices on the protection of migrant women and children, in particular those

unaccompanied, as well as other vulnerable groups.

& /en 28

2. The Parties shall cooperate to prevent irregular migration, to counter migrant

smuggling and trafficking in persons, and to foster safe, regular and orderly migration. To

that end, within the framework of their respective laws and regulations:

(a) Mexico shall readmit any of its nationals obliged to return from the territory of a

Member State, on request by the latter and without further formalities, unless otherwise

provided for by a specific agreement;

(b) each Member State shall readmit any of its nationals obliged to return from the territory

of Mexico, on request by the latter and without further formalities, unless otherwise

provided for by a specific agreement;

(c) the Member States and Mexico shall provide their nationals with appropriate travel

documents for the purposes referred to in points (a) and (b), or accept the use of the

Union travel documents for return purposes;

(d) the Parties shall endeavour to negotiate a specific agreement defining obligations on

readmission of nationals, including means of evidence regarding nationality. The

conditions for the readmission of third-country nationals shall be established by that

agreement.

& /en 29

ARTICLE 3.4

World Drug Problem

1. The Parties shall cooperate to ensure a balanced and integrated approach on drug

issues with a view to:

(a) joining efforts towards achieving the effective implementation of the operational

recommendations of the 2016 Special Session of the UN General Assembly on the

World Drug Problem (UNGASS 2016);

(b) addressing the health and social consequences of the world drug problem, with policies

aimed at achieving sustainable development, through comprehensive, evidence-based

demand reduction initiatives at all levels covering in particular prevention, treatment,

rehabilitation and social reintegration programmes;

(c) investing in treatment and increasing awareness on public health responses to drug use

amongst the national health systems;

(d) strengthening epidemiological research and further improving the systematic

availability and quality of statistical information across all drug domains;

& /en 30

(e) ensuring a public health approach that promotes access to and availability of controlled

substances for medical and scientific purposes, while preventing their diversion to the

illicit market;

(f) reducing the supply, trafficking and demand for illicit drugs and new psychoactive

substances, including through the exchange of information and other cooperation

activities as appropriate;

(g) mainstreaming a gender and human rights perspective in all drug policies and

programmes;

(h) encouraging the application of alternative to coercive sanctions to persons who have

committed drugs-law and drug-related offences;

(i) addressing the diversion of chemical precursors, essential chemicals and products or

preparations containing them used for the illicit production of narcotic drugs,

psychotropic substances and new psychoactive substances.

& /en 31

2. The Parties shall collaborate to attain those objectives, including, when possible, by

encouraging third countries that have not already done so to ratify and implement existing

international drug control conventions and protocols to which they are party. The Parties shall

base their actions on their applicable laws and regulations, on commonly accepted principles

in line with the relevant UN drug control conventions and on the recommendations set out in

the outcome document of the UNGASS 2016 entitled "Our joint commitment to effectively

addressing and countering the world drug problem", as the most recent international

consensus on the world drug policy, in order to take stock of the implementation of the

commitments made to jointly address and counter the world drug problem, particularly in the

light of the 2019 target date.

ARTICLE 3.5

Money Laundering and the Financing of Terrorism

The Parties shall cooperate with a view to preventing and effectively combatting the use of

their financial institutions and designated non-financial businesses and professions to launder

the proceeds of criminal activities and to finance terrorism. To that end, they shall exchange

information in accordance with their respective legislation and cooperate to ensure the

effective and full implementation of the Financial Action Task Force (hereinafter referred to

as the "FATF") recommendations and other standards adopted by relevant international

bodies active in this area. Such cooperation may include, among others, the recovery, seizure,

confiscation, tracing, identification and return of assets or funds related to proceeds of

criminal activity or to terrorist financing.

& /en 32

ARTICLE 3.6

Cybercrime

1. The Parties recognise that cybercrime is a global problem requiring a global response.

The Parties shall strengthen cooperation to prevent and combat cybercrime through the

exchange of information and best practices and trends, in accordance with their respective

legislation, and relevant international legal instruments on cybercrime. The Parties shall work

together, as appropriate, to provide assistance and support to other States in the development

of effective laws, policies and practices to prevent and combat cybercrime.

2. The Parties shall, as appropriate, in accordance with their respective legislation,

exchange information, experiences and best practices in areas such as the education and

training of cybercrime investigators, the conduct of cybercrime investigations and digital

forensics with emphasis on combatting child sexual exploitation and protecting critical

infrastructure such as the financial, energy and telecommunications sectors, among others.

ARTICLE 3.7

Personal Data Protection

1. The Parties recognise the importance of protecting the fundamental rights to privacy

and the protection of personal data. The Parties shall cooperate to ensure the respect of these

fundamental rights including in the area of law enforcement and when preventing and

combatting terrorism and other serious transnational crimes.

& /en 33

2. The Parties shall cooperate to promote a high level of protection for personal data.

Cooperation at the bilateral and multilateral levels may include capacity building, technical

assistance, the exchange of information and expertise, and cooperation through regulatory

counterparts in international bodies as mutually agreed by the Parties.

ARTICLE 3.8

Consumer Policy

The Parties recognise the importance of ensuring a high level of consumer protection and, to

that end, shall endeavour to cooperate in the field of consumer policy. Such cooperation may

involve to the extent possible:

(a) exchanging information on their respective consumer protection frameworks, including

on consumer laws, consumer product safety, consumer redress and the enforcement of

consumer legislation;

(b) encouraging the development of independent consumer associations and contacts

between consumer representatives.

& /en 34

ARTICLE 3.9

Consular Protection

Mexico agrees that the diplomatic and consular authorities of any represented EU Member

State shall provide protection to any national of a EU Member State which does not have a

permanent representation in Mexico effectively in a position to provide consular protection in

a given case, on the same conditions as to nationals of that EU Member State.

ARTICLE 3.10

Disaster Risk Management and Civil Protection

The Parties recognise the need to manage both domestic and global natural and man-made

disaster risks. The Parties affirm their common commitment to improving prevention,

mitigation, preparedness, early warning, response and recovery measures in order to increase

the resilience of their societies and infrastructure, and to cooperate, as appropriate, at a

bilateral and multilateral level to improve global disaster risk-management outcomes aligned

with the Sendai Framework for Disaster Risk Reduction 2015-2030, in coherence with the

SDGs, the Paris Agreement on Climate Change (hereinafter referred to as the "Paris

Agreement") and the New Urban Agenda.

& /en 35

CHAPTER 4

SUSTAINABLE DEVELOPMENT

ARTICLE 4.1

Sustainable Development

1. The Parties reaffirm their commitment to achieve sustainable development, as

expressed in the 2030 Agenda. The Parties recognise that sustainable development in the long

term requires inclusive economic growth, social well-being and sustainable use of natural

resources. Those three dimensions are recognised as deeply interlinked and mutually

reinforced.

2. The Parties shall promote sustainable development in its three dimensions, economic,

social and environmental, in a balanced manner, including the responsible, efficient use and

sustainable management of natural resources, in accordance with their respective priorities

and circumstances, as well as raise awareness of the economic and social costs of

environmental damage, unsustainable patterns of production and consumption, and its

associated impact on human well-being.

3. The Parties shall promote human inclusive sustainable development through dialogue,

joint action, sharing of best practices, good governance at all levels, and the mobilisation of

financial resources, making the best possible use of existing financial instruments and

exploring the viability of establishing new ones.

& /en 36

ARTICLE 4.2

Sustainable Development Cooperation

1. The main objective of development cooperation is to implement the 2030 Agenda, in

its multidimensional and human-centered perspective, and to achieve the SDGs. The

principles of effective development cooperation as outlined by the Global Partnership for

Effective Development Cooperation, building on the Paris Declaration on Aid Effectiveness,

adopted at the High-Level Forum on Aid Effectiveness in Paris on 2 March 2005 and the

Accra Agenda for Action, endorsed at the High-Level Forum on Aid Effectiveness in Accra

on 4 September 2008, are important tools to maximise its development impact.

2. The Parties shall address the challenges linked to achieving the SDGs by giving

priority to each Party's needs and national ownership, taking into account regional context,

and building synergies and development partnerships with a range of stakeholders on the

field, including the civil society, local governments, private sector or non-profit

organisations. While recognising the central role of Governments in promoting development,

the Parties shall also cooperate to promote the uptake by the private sector, in particular

SME's, of sustainable development policies in its practices.

3. The Parties shall cooperate to progressively improve global resource efficiency and

sustainability in consumption and production patterns, in accordance with agreed

international frameworks, and shall endeavour to take actions aimed at decoupling economic

growth from environmental degradation.

& /en 37

4. The Parties shall hold a regular policy dialogue on sustainable development and the

achievement of the SDGs, based on common priorities in order to enhance the quality and

effectiveness of their development cooperation, in line with internationally accepted

principles of aid and development effectiveness.

5. The Parties recognise that mainstreaming the conservation and sustainable use of

biological diversity into sectoral and cross-sectoral plans, programmes and policies across

relevant sectors, and strengthening of legal, institutional and regulatory domestic frameworks

can contribute to generating positive impacts on biological diversity and its ecosystem

services as well as to achieving sustainable development. As such, the Parties shall cooperate

to integrate biodiversity mainstreaming into relevant sectors, as applicable, to enhance efforts

to halt biodiversity loss and improve human well-being.

6. The Parties shall cooperate and carry out joint activities, including through bilateral

coordination in relevant multilateral fora, as well as regional and triangular cooperation

preferably based on existing mechanisms and initiatives, in light of their sustainable

development dialogue and their commitment to the 2030 Agenda. The areas of cooperation

may include:

(a) implementation of the goals and targets of the SDGs;

(b) environmental protection, at all levels, including conservation and sustainable use of

natural resources;

& /en 38

(c) climate change, resilience, disaster risk management and sustainable energy;

(d) the security-development nexus, including building stability and security, supporting

the rule of law, countering the world drug problem and transnational organised crime;

(e) inclusive growth and job creation;

(f) governance, including strengthening fiscal, economic, environmental and social

governance;

(g) education, including higher education, technical and vocational training, capacity

building, innovation, and exchanges in these areas; and

(h) private sector participation strategies.

7. The Parties shall continue developing triangular cooperation activities in order to

support third countries in their implementation of SDGs, including Least Developed

Countries (LDCs) and other developing countries in situations of vulnerability, such as Small

Island Developing States (SIDS). In that regard, the Parties shall explore innovative

engagement modalities, including for more advanced developing countries, as appropriate.

Triangular cooperation shall consist of supporting tailor-made strategies and commonly

agreed actions based on the needs of third countries. To that end, the Parties shall develop

coordinated cooperation activities such as technical assistance, training, capacity building,

knowledge sharing, and other forms of cooperation jointly defined between the Parties and

with the recipient third country.

& /en 39

8. Such cooperation may be undertaken through, among others:

(a) capacity building and knowledge sharing through training courses, workshops and

seminars, the exchange of experts, studies, and joint research;

(b) mobilising financial resources through blending operations in partnership with the

European Investment Bank and other eligible European development finance

institutions;

(c) considering other forms of development financing as appropriate, with a focus on

innovative financing mechanisms, such as triangular cooperation; and

(d) exchanging information on best practices of development effectiveness.

9. The Parties shall work together to strengthen accountability and transparency with a

focus on improving development results and cooperate to strengthen national systems to

deliver sustainable services and mainstream gender considerations across programmes and

instruments.

10. Development cooperation shall be carried out in line with the relevant internationally

agreed principles and policies to which both Parties have adhered to.

& /en 40

ARTICLE 4.3

Sustainable Urban Agenda

The Parties shall cooperate in the implementation of policies promoting sustainable urban

settlements, including those derived from the New Urban Agenda, aiming to achieve cities

and human settlements where all persons are able to enjoy equal rights and opportunities, as

well as their fundamental freedoms, in line with the SDGs and targets, in particular Goal 11:

"Make cities and human settlements inclusive, safe, resilient and sustainable".

ARTICLE 4.4

Regional and Urban Policy Development

1. The Parties recognise the importance of policies to promote balanced and sustainable

territorial and urban development as a means to contribute effectively to the implementation

of the objectives of the 2030 Agenda and the New Urban Agenda.

2. The Parties shall promote cooperation and partnership involving all the key actors in

the fields of regional and territorial development and sustainable urban development, in

particular, on ways to address territorial and urban challenges in an integrated and

comprehensive manner.

3. The Parties shall develop, wherever possible, concrete opportunities for region-to-

region and city-to-city cooperation on sustainable solutions to regional and urban challenges

with a view to improving capacity building through exchanges of experience and practice,

and mutual learning.

& /en 41

CHAPTER 5

ENVIRONMENT, CLIMATE CHANGE AND ENERGY

ARTICLE 5.1

Environment

1. The Parties recognise the need to protect, conserve, restore and sustainably manage

natural resources and biological diversity, including soil, land, forests, water, oceans, seas

and marine resources, as a basis for sustainable development supporting the needs of current

and future generations.

2. The Parties recognise the importance of global environmental governance and

international rules, including multilateral environmental agreements, to tackle environmental

challenges of common concern. Each Party reaffirms its commitment to implement the

multilateral environmental agreements to which it is a party.

& /en 42

3. The Parties shall strengthen their cooperation in mutually agreed priority areas on

environmental protection, conservation, responsible, efficient use and sustainable

management of natural resources, and on mainstreaming environmental considerations in all

sectors of cooperation, including in an international and regional context. Those priority areas

may include:

(a) promoting good environmental governance, including policy dialogue and cooperation

areas such as the implementation of UN Environment Assembly resolutions and

multilateral environmental agreements, as well as promoting compliance with

environmental law;

(b) identifying bilateral priorities and, fostering the exchange of information, technical

expertise, technology and knowledge transfer, and best practices in areas such as:

(i) implementation and enforcement of environmental legislation;

(ii) green growth, including sustainable consumption and production, resource

efficiency, circular economy, and green finance;

(iii) biodiversity mainstreaming into economic and productive sectors;

(iv) protection, conservation and sustainable management of forests;

& /en 43

(v) protection, conservation and sustainable use of biodiversity including the

mapping and assessment of ecosystems and their services, their valuation, and

other economic instruments for the protection of biodiversity, as well as access to

genetic resources and the fair and equitable sharing of benefits arising from their

utilization;

(vi) land degradation and desertification;

(vii) prevention and the combat against illegal harvest and trade in wildlife, forest

resources, genetic resources, and support for their legal sustainable and traceable

trade;

(viii) sound management of chemicals and waste;

(ix) integrated Water Resource Management (hereinafter referred to as the "IWRM"),

air and soil policy;

(x) coastal and marine environment conservation and management and sustainable

blue economy;

(xi) designation, representativeness, effective management and connectivity of

protected areas, as well as other effective area-based conservation measures

(OECMs), including marine protected areas; and

(xii) collaboration with the private sector in the areas referred to in this point, where

possible.

& /en 44

ARTICLE 5.2

Climate Change

1. The Parties acknowledge that the urgent threat of climate change requires collective

action for low-emission and climate-resilient development, as well as adaptation measures.

2. The Parties recognise the importance of international rules and agreements in the area

of climate change, in particular the United Nations Framework Convention on Climate

Change, done at New York on 9 May 1992 (hereinafter referred to as the "UNFCCC") and

the Paris Agreement, and stress that their implementation is irreversible and reaffirm their

commitments under these agreements.

3. The Parties shall work together to strengthen their cooperation under the UNFCCC, to

implement the Paris Agreement and their nationally determined contributions (hereinafter

referred to as the "NDCs"), as well as to invite other countries to do so and to develop their

long-term low greenhouse gas emissions development strategies.

4. Such cooperation may include:

(a) facilitating further action, to contribute to national debates and policy work;

(b) supporting low carbon economic development in accordance with the Paris Agreement;

& /en 45

(c) extending the NDCs into national sector policies and measures that cover transport,

energy, infrastructure, urban planning, land use and investment sector strategies,

including the integration of the adaptation processes in the sectorial development

strategies;

(d) supporting the facilitative dialogue and the early definition of measures to review

climate action in all countries;

(e) developing the transparency agenda under the Paris Agreement, including policy

dialogue and cooperation in mutually agreed priority areas;

(f) enhancing other processes such as the International Civil Aviation Organisation's

(hereinafter referred to as the "ICAO") stabilisation of international aviation emissions

at 2020 levels, the adoption and formulation of the "Comprehensive strategy on

reduction of greenhouse gas emissions from ships" by the International Maritime

Organisation (hereinafter referred to as the "IMO"), or the ambitious phase-down of

hydroflurocarbons (hereinafter referred to as the "HFCs") under the Amendment to the

Montreal Protocol on Substances that Deplete the Ozone Layer, adopted in Kigali on 15

October 2016 including its ratification and ensuring its swift implementation to achieve

an ambitious global phase-down of consumption and production of HFCs;

(g) Promoting domestic climate policies and programmes in the framework of the Paris

Agreement, including the promotion of emissions monitoring and market and non-

market mechanisms, sustainable and climate-resilient infrastructure development,

renewable energy, energy efficiency, sustainable transport as well as those which

address the adverse effects of deforestation, forest, soil and all ecosystems degradation

on climate.;

& /en 46

(h) strengthening synergies with entrepreneurs, civil society organisations and local

authorities, which complement the efforts made by States;

(i) participation of the private sector towards a low-carbon economy;

(j) promoting market-based measures to introduce carbon pricing and the "polluter pays"

principle;

(k) enhancing the development and deployment of commercially viable low-emission and

other climate-friendly technologies;

(l) progressively eliminating subsidies for fossil fuels, and promoting the development of a

sustainable and low-carbon economy, such as investment in renewable energies and

energy efficient solutions;

(m) enhancing bilateral dialogue and measures on adaptation, mitigation and means of

implementation, including technology transfer, capacity building and finance;

(n) fostering the consideration of the cross-cutting approaches of gender and youth in the

implementation of the 2030 Agenda and the Paris Agreement;

(o) promoting policies on climate impacts on water resources;

& /en 47

(p) implementing the Paris Pact on Water and Adaptation to Climate Change in the Basins

of Rivers, Lakes and Aquifers, presented at the UN Climate Change Conference in

Paris on 2 December 2015 as well as the Lima-Paris Action Agenda launched at the

Climate Summit in New York on 23 September 2014;

(q) strengthening cooperation schemes to ensure more ambitious future NDCs while taking

into account the global stocktake process.

ARTICLE 5.3

Energy

1. The Parties recognise the importance of the energy sector to economic prosperity and

international peace and stability and underline that the transformation of the energy sector is

key to achieving the goals set out in Agenda 2030 and the Paris Agreement. They recognise

the need to improve and diversify energy supplies (including the promotion of renewable

energies), promote innovation, research, development and training of human resources, as

well as increase energy efficiency in order to strengthen energy productivity, energy security,

and safe, sustainable and affordable energy. The Parties shall work towards those objectives.

2. The Parties shall maintain information exchanges on energy and collaborate

bilaterally, regionally and multilaterally to foster open and competitive markets, share best

practices, promote science-based, transparent regulation, and discuss areas of cooperation on

energy issues, such as within the framework of international fora, mechanisms and initiatives.

& /en 48

CHAPTER 6

AGRICULTURE, MARITIME AFFAIRS AND FISHERIES

ARTICLE 6.1

Cooperation in Agriculture and Rural Development

The Parties shall cooperate in, among others:

(a) agricultural and rural development policy;

(b) agricultural market outlook;

(c) sustainable management of natural resources and climate action;

(d) sustainable and resilient agriculture by promoting awareness for the "Principles for

Responsible Investment in Agriculture and Food Systems" and the "Voluntary

Guidelines on Responsible Governance of Tenure of Land, Fisheries and Forests in the

Context of National Food Security" of the Committee on World Food Security;

(e) fostering rural development through capacity building on trade related issues, including

geographical indications as an intellectual property right;

& /en 49

(f) organic farming;

(g) research and innovation;

(h) organisation and development of sustainable production processes in the agrifood

sector (agriculture and livestock);

(i) organisation and productive development of rural communities;

(j) food security;

(k) prevention of postharvest loss and food waste;

(l) applied research for the production and management of agricultural and animal

products; and

(m) processing of agricultural and food products.

ARTICLE 6.2

Maritime Affairs and Fisheries

1. The Parties recognise the importance of the conservation and the sustainable and

responsible management of fisheries, aquaculture and other maritime activities and their

contribution to providing economic, social and environmental, opportunities for present and

future generations.

& /en 50

2. The Parties shall strengthen dialogue and cooperation on issues of mutual interest in

the areas of fisheries and maritime affairs.

3. The Parties shall, in a manner consistent with their international obligations:

(a) contribute to improving the global ocean governance system, including by filling

regulatory and implementation gaps and promoting the ratification and implementation

of relevant instruments in the maritime and fisheries sectors with third countries;

(b) adopt effective monitoring, control and surveillance measures, such as observer

schemes, vessel monitoring schemes, transhipment control, inspections at sea and port

state measures and associated sanctions, aimed at the conservation of fish stocks and

the prevention of overfishing;

(c) maintain or adopt actions and cooperate to combat illegal, unreported and unregulated

(hereinafter referred to as "IUU") fishing, including, where appropriate, the exchange of

information on IUU activities in their waters and the implementation of policies and

measures to exclude IUU products from trade flows and fish farming operations;

(d) cooperate with, and where appropriate in, regional fisheries management organisations

to which both Parties are either members, observers, or cooperating non-contracting

parties, with the aim of achieving good governance, including by advocating for

science-based decisions and compliance with such decisions in those organisations;

& /en 51

(e) promote the development of sustainable production processes, which are

environmentally responsible and economically competitive, in the freshwater and

marine aquaculture industry;

(f) strengthen the safety and security of the oceans;

(g) reduce pressures on the oceans including through the fight against marine litter;

(h) promote maritime spatial planning and integrated coastal zone management;

(i) support marine research and biotechnology; and

(j) exchange best practices on the sustainable development of maritime economic activities

of mutual interest to the Parties such as ocean energy, coastal and maritime tourism.

& /en 52

CHAPTER 7

ECONOMIC POLICY

ARTICLE 7.1

Macroeconomic Policies

The Parties shall strengthen the dialogue between their authorities on macroeconomic

policies and trends and promote the exchange of information and views thereon.

ARTICLE 7.2

Enterprise and Industry, including Small and Medium-Sized Enterprises

1. The Parties shall promote a favourable environment for the development and

improved competitiveness of small and medium-sized enterprises (hereinafter referred to as

"SMEs") and promote horizontal industrial policy cooperation as appropriate. Such

cooperation shall consist in:

(a) promoting contacts between economic operators, encouraging joint investments and

establishing joint ventures and information networks through existing horizontal

programmes;

& /en 53

(b) exchanging information and experiences on creating framework conditions for SMEs to

improve their competitiveness and on procedures related to the creation of SMEs;

(c) facilitating the activities established by SMEs of both sides;

(d) exchanging information and best practices on Industry 4.0; and

(e) promoting corporate social responsibility and accountability and encouraging

responsible business practices, including sustainable consumption and production.

2. The Parties shall facilitate relevant cooperation activities established by the private

sector.

ARTICLE 7.3

Business and Human Rights

The Parties shall promote corporate social responsibility, in accordance with relevant

international standards, such as the UN Guiding Principles on Business and Human Rights

and the OECD Guidelines for Multinational Enterprises and the OECD Due Diligence

Guidance for Responsible Business Conduct, at the national level, as well as to promote

capacity building and the exchange of experiences at the international level.

& /en 54

ARTICLE 7.4

Raw Materials

1. The Parties recognise that a transparent, market-based approach is the best way to

create an environment favourable to investment in the production and trade of raw materials.

2. The Parties shall promote cooperation on issues relating to raw materials within

relevant regional or multilateral settings or through bilateral dialogue on request of either

Party, based on mutual interests. This cooperation shall aim to remove barriers to trade in raw

materials within such settings, strengthen a rules-based global framework for trade in raw

materials, promote transparency in global markets for raw materials and contribute to

sustainable development.

3. Such cooperation may include exchanges of information in relation to:

(a) supply and demand, bilateral trade and investment issues as well as international trade

issues;

(b) tariff and non-tariff barriers for raw-material goods, related services and investments;

(c) the Parties' respective regulatory frameworks;

(d) technologies applied to production processes and use of raw materials; and

(e) best practices in relation to sustainable development of the mining industry, including

minerals policy, land-use planning, permitting procedures, transparency and

governance.

& /en 55

ARTICLE 7.5

Statistics

The Parties shall cooperate in the field of statistics, in particular by actively promoting the

sharing of best practices. Such cooperation may include:

(a) increased attendance at high-level international meetings in topics of mutual interest;

(b) the harmonisation of statistics methodologies to improve data comparability; and

(c) the production and dissemination of official statistics and the development of

indicators.

ARTICLE 7.6

Transport

1. The Parties shall cooperate and strengthen dialogue in all relevant areas of transport

policy, including integrated transport policy, with a view to improving the movement of

goods and passengers, promoting maritime and aviation safety and security and

environmental protection and increasing the efficiency of their transport systems.

& /en 56

2. Such cooperation and dialogue may include:

(a) exchanging information and best practices with regard to their respective transport

policies;

(b) strengthening aviation relations between Mexico and the Union including exploring the

possibility of concluding a dedicated aviation agreement;

(c) promoting the goals of unrestricted access to international maritime markets and trade,

based on fair competition and on a commercial basis;

(d) facilitating maritime transport, logistics chains and multi-modal transport to enhance

competitiveness and economic relations;

(e) promoting environment-related transport issues;

(f) facilitating expert dialogue and cooperation within international transport fora; and

(g) supporting the cross-border electronic flow of information for the promotion of a

dynamic environment for efficient and cost-effective transport services.

& /en 57

CHAPTER 8

EDUCATION, CULTURE AND SOCIAL ISSUES

ARTICLE 8.1

Education

The Parties shall promote cooperation and dialogue in relevant areas of education, including:

(a) strengthening higher education and technical and vocational education and training;

(b) increasing the mobility of students, researchers, academic and administrative staff from

higher-education institutions; and

(c) fostering capacity building in higher education institutions, including the improvement

of mechanisms for recognition of qualifications and study periods abroad.

& /en 58

ARTICLE 8.2

Culture

1. The Parties shall cooperate in relevant international fora, in particular the UN

Educational, Scientific and Cultural Organization (hereinafter referred to as the "UNESCO"),

in order to pursue common objectives and to foster cultural diversity, including through

implementation of the Convention on the Protection and Promotion of the Diversity of

Cultural Expressions, adopted by the General Conference of the UNESCO in Paris on 20

October 2005.

2. The Parties shall promote closer cooperation in the cultural and creative sectors and

industries, including emerging and new technologies and audio-visual media, in order to

enhance, inter alia, mutual understanding and knowledge of their respective cultures.

3. The Parties shall promote cultural exchanges and carry out joint initiatives in various

cultural areas under available cooperation frameworks.

4. The Parties shall promote cooperation and joint initiatives related to the creation,

promotion and dissemination of digital contents in the artistic and cultural field within a legal

framework that recognises and values the work of creators, as a way to enhance universal

access to culture and its components.

& /en 59

5. The Parties shall encourage intercultural dialogue between their respective civil

society organisations as well as individuals.

6. The Parties recognise the role played by culture as both an enabler and driver of the

economic, social and environmental dimensions of conflict prevention and sustainable

development, bearing in mind that the cultural and creative industries are major drivers of the

economies of developed and developing countries.

ARTICLE 8.3

Employment and Social Issues

1. The Parties acknowledge that improving living standards, creating quality jobs and

promoting decent work should be at the heart of employment and social policies.

2. The Parties shall respect and promote the fundamental principles and rights at work

set out in the International Labour Organization's (hereinafter referred to as the "ILO")

Declaration on Fundamental Principles and Rights at Work, adopted by the International

Labour Conference in Geneva on 18 June 1998, and in the corresponding ILO Conventions to

which they are party.

& /en 60

3. The Parties shall enhance cooperation in the field of employment, social dialogue and

social affairs and promote exchanges of information regarding employment, health and safety

at work, labour issues and social protection.

ARTICLE 8.4

Exponential Technological Change

The Parties shall share lessons learned and best practices to address in an effective and

comprehensive manner the impacts of exponential technological change, automation, and its

implications towards the full implementation of the SDGs.

ARTICLE 8.5

Social Cohesion and Inclusion

The Parties shall cooperate to enhance social cohesion through the reduction of poverty in all

its forms, inequality and social exclusion with a view to achieving the SDGs globally and

promoting fair globalisation, full employment, and decent work for all men and women

including through:

(a) strengthening social protection systems;

& /en 61

(b) encouraging equal access and non-discrimination in social policies;

(c) fostering innovation to address social challenges through the exchange of information

on best practices, and the promotion of dialogue and research in this sector; and

(d) promoting social economy solidarity for inclusion and combatting poverty.

ARTICLE 8.6

Health

1. The Parties shall cooperate in the field of public health, including prevention and

health promotion, to raise the level of public health safety and promote universal health

coverage.

2. Such cooperation may include:

(a) exchanging information and collaborating on issues of mutual interest;

(b) promoting implementation of international health agreements; and

(c) facilitating exchanges, fellowships and training programmes in the areas referred to in

paragraph 1.

& /en 62

ARTICLE 8.7

Tourism

1. The Parties shall cooperate in the area of tourism. Such cooperation shall primarily

aim to improve the exchange of information and best practices in order to ensure the balanced

and sustainable development of tourism and to support the creation of jobs and economic

development.

2. Such cooperation shall focus on:

(a) safeguarding and maximising the potential of natural and cultural heritage;

(b) practices encouraging responsible tourism and respect of local communities;

(c) exchanging information and best practices about actions to improve skills and

competences in the tourism sector;

(d) promoting information exchange and cooperation for creative industries and innovation

in the tourism sector; and

(e) exchanging best practices with a view to mainstreaming sustainability principles, in

particular biodiversity, in tourism.

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CHAPTER 9

RESEARCH, INNOVATION AND DIGITAL ECONOMY

ARTICLE 9.1

Research and Innovation

1. The Parties shall cooperate in the area of scientific research, technological

development and innovation on the basis of mutual interest and benefit and in accordance

with their respective legislation. Such cooperation shall aim to promote sustainable

development, tackle global societal challenges, achieve scientific excellence, improve

regional competitiveness, as well as strengthen relations between the Parties, leading to long

lasting partnerships. The Parties shall foster policy dialogue at bilateral and regional levels

and use their different instruments, including agreements for scientific and technological

cooperation, in complementary ways.

2. The Parties shall seek to:

(a) improve conditions for mobility of researchers, scientists, experts, students and

entrepreneurs and for movement of material and equipment across borders;

& /en 64

(b) facilitate reciprocal access to each other's science, technology and innovation

(hereinafter referred to as the "STI") programmes, research infrastructures and

facilities, publications and scientific data;

(c) increase cooperation in pre-normative research and standardisation; and

(d) promote common principles to achieve an adequate and effective level of protection

and enforcement of intellectual property rights in research and innovation projects.

3. The Parties shall promote the following activities to be undertaken by government

organisations, public and private research centres, higher-education institutions, innovation

agencies and networks, and other stakeholders, including SMEs:

(a) joint initiatives to raise awareness on science, technology, innovation, and capacity-

building programmes and opportunities for participating in each other's programmes;

(b) joint meetings and workshops aiming at exchanging information, best practices and

identifying areas for joint research;

(c) joint research actions in areas of mutual interest;

(d) mutually recognised assessment and evaluation of scientific cooperation and

dissemination of the corresponding results.

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ARTICLE 9.2

Digital Economy

1. The Parties recognise that information and communication technologies (hereinafter

referred to as "ICTs") are key elements of modern life and are of vital importance to

contribute to strengthen information and knowledge in a society in order to enhance

economic, educational and social development. The Parties shall exchange views on their

respective policies in this field.

2. Such cooperation may include:

(a) exchanging views on the different aspects of the digital single market policy, in

particular electronic communications policies and regulation, including access to

broadband services, protection of privacy and personal data, e-government, open

government, open data, internet security, e-health, and the independence of regulatory

authorities;

(b) promoting ICTs as means to promote economic, social and cultural development, social

and digital inclusion and cultural diversity, emphasising the entrepreneurial spirit and

participatory collaborative work as well as stimulating connectivity in schools and

developing research and academic networks;

(c) developing the interconnection and interoperability of research networks, computing

and scientific data infrastructures and services, including those within a regional

context;

& /en 66

(d) cooperating in the area of e-government and trust services such as electronic signature

and electronic identification (eID), with a focus on exchanging policy principles,

information and best practices on the use of ICTs to modernise public administration,

promote high quality public services, improve organisational efficiency and transparent

management of public resources;

(e) exchanging information on standards, conformity assessment and type approval; and

(f) promoting the exchange and training of specialists, in particular young professionals.

EN EN

EUROPEAN COMMISSION

Brussels, 3.9.2025

COM(2025) 810 final

ANNEX 1 – PART 2/4

ANNEX

to the

Proposal for a COUNCIL DECISION

on the conclusion, on behalf of the European Union, of the Political, Economic and

Cooperation Strategic Partnership Agreement between the European Union and its

Member States, of the one part, and the United Mexican States, of the other part

& /en 67

PART III1

TRADE AND INVESTMENT

CHAPTER 1

GENERAL AND INSTITUTIONAL PROVISIONS

SECTION A

General Provisions

ARTICLE 1.1

Establishment of a Free Trade Area

The Parties establish by virtue of this Part of the Agreement a free trade area, consistent with

Article XXIV of GATT 1994 and Article V of GATS.

1 When a provision contains a reference to another article, without specifying the Part of this

Agreement where the referenced article is located, that article shall be intended to be in

Part III of the Agreement

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ARTICLE 1.2

Objectives

The objectives of this Part of the Agreement are:

(a) the expansion and diversification of trade in goods, in conformity with Article XXIV of

GATT 1994, between the Parties through the reduction or the elimination of customs duties

and non-tariff barriers to trade;

(b) the facilitation of trade in goods, in particular through the provisions regarding customs and

trade facilitation, standards, technical regulations and conformity assessment procedures as

well as sanitary and phytosanitary measures, while preserving the right of each Party to

regulate within its territory and to achieve public policy objectives;

(c) the liberalisation of trade in services, in conformity with Article V of GATS;

(d) the development of a framework conducive to increased investment flows by providing

transparent, stable and predictable rules governing the conditions for establishment of

enterprises and the related movement of capital, and guaranteeing an appropriate balance

between the liberalisation and the protection of investments and the right of each Party to

regulate in order to achieve legitimate policy objectives;

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(e) the establishment of an investment court system to solve investor-state disputes in an

effective, impartial and predictable manner;

(f) the effective and reciprocal opening of government procurement markets of the Parties;

(g) the promotion of innovation and creativity by ensuring an adequate and effective protection of

intellectual property rights, in accordance with international obligations in force between the

Parties, and the balance between this protection and the public interest;

(h) the conduct of trade and investment relations between the Parties in conformity with the

principle of free and undistorted competition;

(i) the promotion of sustainable development and of the development of international trade in a

manner that contributes to sustainable development, encompassing economic development,

social development and environmental protection;

(j) the establishment of an effective, fair and predictable dispute settlement mechanism to solve

disputes between the Parties on the interpretation or application of this Part of the Agreement.

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ARTICLE 1.3

Definitions of General Application

For the purposes of this Part of the Agreement, and unless otherwise specified:

(a) "administrative ruling of general application" means an administrative ruling or interpretation

that applies to all persons and factual situations that fall generally within the scope of that

administrative ruling or interpretation and that establishes a norm of conduct, but does not

include:

(i) a determination or ruling made in administrative or quasi-judicial proceedings that

applies to a particular person, good or service of the other Party in a specific case; or

(ii) any other ruling that adjudicates with respect to a particular act or practice;

(b) "Agreement on Agriculture" means the Agreement on Agriculture in Annex 1A to the WTO

Agreement;

(c) "agricultural good" means a product listed in Annex 1 to the Agreement on Agriculture;

(d) "aircraft repair and maintenance services during which an aircraft is withdrawn from service"

means repair and maintenance activities undertaken on an aircraft or a part thereof while it is

withdrawn from service and do not include line maintenance;

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(e) "Anti-dumping Agreement" means the Agreement on Implementation of Article VI of the

General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;

(f) "computer reservation system services" means services provided by computerised systems

that contain information about air carriers' schedules, availability, fares and fare rules, and

through which reservations can be made or tickets may be issued;

(g) "customs duty" means any duty or charge of any kind imposed on or in connection with the

importation of a good, it includes any surtax or surcharge imposed in connection with such

importation; but does not include any:

(i) charge equivalent to an internal tax imposed in accordance with Article 2.3;

(ii) anti-dumping or countervailing2 duty applied in accordance with GATT 1994, the

Anti-dumping Agreement and the SCM Agreement, as appropriate;

(iii) fee or other charge imposed on or in connection with the importation of a good that is

limited in amount to the approximate cost of services rendered; and

2 For greater certainty, the definition of customs duty does not affect the rights and obligations

of the Parties under Chapter 5 (Trade Remedies).

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(iv) premium offered or collected on an imported good arising out of a tendering system

authorised for the administration of tariff rate quotas pursuant to Appendix 2-A-4

(Tariff Rate Quotas of Mexico);

(h) "Customs Valuation Agreement" means the Agreement on Implementation of Article VII of

the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;

(i) "days" means calendar days, including weekends and holidays;

(j) "DSU" means the Understanding on Rules and Procedures Governing the Settlement of

Disputes, contained in Annex 2 to the WTO Agreement;

(k) "enterprise" means any legal entity duly constituted or otherwise organised under applicable

law, whether for profit or otherwise, and whether privately owned or governmentally owned,

including any corporation, trust, partnership, joint venture, sole proprietorship or association;

(l) "existing" means in effect on the date of entry into force of this Agreement;

(m) "freely convertible currency" means a currency which is widely traded in international foreign

exchange markets and widely used in international transactions;

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(n) "GATS" means the General Agreement on Trade in Services in Annex 1B to the WTO

Agreement;

(o) "GATT 1994" means the General Agreement on Tariffs and Trade 1994 in Annex 1A to the

WTO Agreement;

(p) "goods" means both materials and products;

(q) "good of a Party" means a domestic good as this is understood in GATT 1994, and includes

originating goods of that Party;

(r) "ground handling services" means the supply at an airport, on a fee or contract basis, of airline

representation, administration and supervision services, passenger handling, baggage

handling, ramp services, catering,3 air cargo and mail handling, fuelling of an aircraft, aircraft

servicing and cleaning, surface transport, and flight operation, crew administration and flight

planning services; but does not include self-handling, security, line maintenance, aircraft

repair and maintenance; and management or operation of essential centralised airport

infrastructure such as de-icing facilities, fuel distribution systems, baggage handling systems

and fixed intra-airport transport systems;

(s) "Harmonized System" or "HS" means the Harmonized Commodity Description and Coding

System, including its General Rules of Interpretation, Section Notes, Chapter Notes and

Subheading Notes and amendments thereto;

3 Except the preparation of food.

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(t) "measure" includes any law, regulation, rule, procedure, decision, administrative action,

requirement or practice;4

(u) "national" means a natural person who has the nationality of one of the Member States of the

European Union or of Mexico according to their respective law or is a permanent resident of a

Party;

(v) "natural person" means5:

(i) in the case of the European Union, a person having the nationality of one of the Member

States of the European Union according to its legislation;6 and

(ii) in the case of Mexico, a person having the nationality of Mexico according to its

legislation;

a natural person who is a national of Mexico and has the nationality of one of the Member

States of the European Union is deemed to be exclusively a natural person of the Party of his

or her dominant and effective nationality;

4 For greater certainty, "measure" includes failures to act. 5 This definition applies for the purposes of Chapters 10 to 19. 6 The definition of natural persons of the European Union also includes natural persons

permanently residing in the Republic of Latvia who are not citizens of the Republic of Latvia

or any other state but who are entitled, under the laws and regulations of the Republic of

Latvia, to receive a non-citizen's passport.

& /en 75

(w) "OECD" means the Organization for Economic Co-operation and Development;

(x) "originating good" means a good qualifying as originating under the rules of origin set out in

Chapter 3 (Rules of Origin and Origin Procedures);

(y) "person" means a natural person or an enterprise;

(z) "person of a Party" means a national or an enterprise of a Party;

(aa) "preferential tariff treatment" means the rate of customs duty applicable to an originating

good pursuant to Article 2.4 (Elimination or Reduction of Customs Duties);

(bb) "Safeguards Agreement" means the Agreement on Safeguards in Annex 1A to the WTO

Agreement;

(cc) "SCM Agreement" means the Agreement on Subsidies and Countervailing Measures in

Annex 1A to the WTO Agreement;

(dd) "selling and marketing of air transport services" means opportunities for the air carrier

concerned to sell and market freely its air transport services, including all aspects of

marketing such as market research, advertising and distribution, but does not include the

pricing of air transport services or the applicable conditions;

(ee) "service supplier" means a person that supplies or seeks to supply a service;

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(ff) "SPS Agreement" means the Agreement on the Application of Sanitary and Phytosanitary

Measures in Annex 1A to the WTO Agreement;

(gg) "state enterprise" means an enterprise that is owned or controlled by a Party;

(hh) "TBT Agreement" means the Agreement on Technical Barriers to Trade in Annex 1A to the

WTO Agreement;

(ii) "territory" means the territory where this Agreement applies pursuant to Article 2.2

(Territorial Application) of Part IV of this Agreement;

(jj) "third country" means a country or territory outside the territorial scope of application of this

Agreement;

(kk) "TRIPS Agreement" means the Agreement on Trade-Related Aspects of Intellectual Property

Rights in Annex 1C to the WTO Agreement;

(ll) "Vienna Convention on the Law of Treaties" means the Vienna Convention on the Law of

Treaties, done at Vienna on 23 May 1969;

(mm) "WTO" means the World Trade Organization; and

(nn) "WTO Agreement" means the Marrakesh Agreement Establishing the World Trade

Organization, done at Marrakesh on 15 April 1994.

& /en 77

ARTICLE 1.4

Relation to the WTO Agreement

The Parties affirm their rights and obligations with respect to each other under the WTO

Agreement.

ARTICLE 1.5

References to Laws and other Agreements

1. Unless otherwise indicated, any reference in this Part of the Agreement to laws, either

generally or by reference to a specific statute, regulation or directive, shall be construed as a

reference to the laws, as they may be amended.

2. Unless otherwise indicated, any reference, or incorporation by means of a reference in this

Part of the Agreement to other agreements or legal instruments in whole or in part shall be

construed as including:

(a) related annexes, protocols, footnotes, interpretative notes and explanatory notes; and

& /en 78

(b) successor agreements to which the Parties are party or amendments that are binding on the

Parties, except where the reference affirms existing rights and obligations.

ARTICLE 1.6

Fulfilment of Obligations

1. Each Party shall adopt any general or specific measures required to fulfil the obligations

under this Part of the Agreement, including those required to ensure observance thereof by central,

regional or local governments and authorities, as well as non-governmental bodies in the exercise of

powers delegated to them.

2. For greater certainty, a Party may suspend rights and obligations under this Part of the

Agreement, except as provided for in paragraph 3 of Article 2.3 of Part IV of this Agreement

(Fulfilment of Obligations), only for violations of this Part of the Agreement by the other Party and

in conformity with the requirements set out therein, including Chapter 31 (Dispute Settlement).

& /en 79

SECTION B

Institutional Provisions

ARTICLE 1.7

Specific Functions of the Joint Council

1. When the Joint Council performs any of the functions conferred upon it in this Part of the

Agreement, it shall be composed, at ministerial level, of representatives of the EU Party with

responsibility for trade and investment matters, of the one part, and of representatives of the

Ministry of Economy of Mexico, of the other, or by their designees.

2. The Joint Council may modify, in fulfilment of the objectives of this Part of the Agreement:

(a) Annex 2-A (Tariff Elimination Schedule) and Annex 2-E (Relevant measures on Wines

Products and Spirits);

(b) Chapter 3 (Rules of Origin and Origin Procedures) including Annexes 3-A to 3-D;

(c) Annex 10-D (Code of Conduct for Members of the Tribunal, the Appeal Tribunal and

Mediators);

& /en 80

(d) the relevant lists and schedules of Mexico pursuant to paragraph 6 of Article 10.12

(Non-Conforming Measures and Exceptions) and paragraph 4 of Article 11.8

(Non-Conforming Measures and Exceptions);

(e) Annex 21-A (Covered Procurement of the European Union) and Annex 21-B (Covered

Procurement of Mexico);

(f) Annex 25-B (List of Geographical Indications);

(g) Annex 31-A (Rules of Procedure) and Annex 31-B (Code of Conduct for Panellists and

Mediators);

3. The Joint Council may also, in fulfilment of the objectives of this Part of the Agreement:

(a) adopt binding interpretations of the provisions of this Part of the Agreement;

(b) take such other decision as provided for in this Part of the Agreement; and

(c) take any other action in the exercise of its functions as the Parties may agree.

4. Each Party shall implement, in accordance with its applicable legal procedures, any

modification referred to in subparagraph 2(a) within such period as the Parties may agree.

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ARTICLE 1.8

Specific Functions of the Joint Committee

1. When the Joint Committee performs any of the functions conferred upon it in this Part of the

Agreement, it shall be composed of representatives at senior level of the EU Party with

responsibility for trade and investment matters, on the one part, and of representatives of the

Ministry of Economy of Mexico, on the other, in accordance with the respective requirements of

each Party or by their designees.

2. The Joint Committee shall:

(a) assist the Joint Council in the performance of its functions regarding trade-related matters;

(b) be responsible for the proper implementation and application of the provisions of this Part of

the Agreement and for the evaluation of the results obtained from its application;

(c) without prejudice to Chapter 31 (Dispute Settlement), seek to prevent and solve differences or

disputes that may arise regarding the interpretation or application of this Part of the

Agreement;

(d) supervise the work of the Sub-Committees and other bodies established under this Part of the

Agreement; and

(e) discuss ways to further enhance trade and investment between the Parties.

& /en 82

3. In the performance of its duties under paragraph 2, the Joint Committee may:

(a) establish additional Sub-Committees and other bodies from those established in this Part of

the Agreement, composed of representatives of the Parties, and assign them responsibilities

within its competence and decide to modify the functions that are assigned to the

Sub-Committees and other bodies it establishes, as well as dissolve them;

(b) recommend the adoption of decisions in compliance with the specific objectives of this Part of

the Agreement to the Joint Council, including the modifications referred to in

subparagraph 2(a) of Article 1.7, or adopt such decisions in the intervals between the

meetings of the Joint Council, including when the Joint Council is not able to meet; and

(c) take any other action in the exercise of its functions as the Parties may agree or as instructed

by the Joint Council.

ARTICLE 1.9

Coordinators of Part III of this Agreement

1. Each Party shall designate a Coordinator for this Part of the Agreement and notify the other

Party thereof within sixty days after the entry into force of this Agreement.

& /en 83

2. The coordinators shall:

(a) facilitate communications between the Parties on any matter covered by this Part of the

Agreement, as well as other contact points established thereunder;

(b) jointly prepare agendas and make all other necessary preparations for the meetings of the

Joint Council and the Joint Committee in accordance with this Article; and

(c) follow-up on the decisions of the Joint Council and the Joint Committee, as appropriate.

ARTICLE 1.10

Sub-Committees and Other Bodies of Part III of this Agreement

1. The Parties hereby establish the following sub-committees and other bodies, which shall be

composed of representatives of the EU Party, of the one part, and of representatives of Mexico, of

the other:

(a) Committee on Trade in Goods;

(b) Sub-Committee on Agriculture;

(c) Sub-Committee on Trade in Wine and Spirits;

(d) Sub-Committee on Customs Trade Facilitation and Rules of Origin;

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(e) Sub-Committee on Sanitary and Phytosanitary Measures;

(f) Joint Working Group on Animal Welfare and Antimicrobial Resistance;

(g) Sub-Committee on Technical Barriers to Trade;

(h) Sub-Committee on Services and Investment;

(i) Sub-Committee on Financial Services;

(j) Sub-Committee on Public Procurement;

(k) Sub-Committee on Intellectual Property;

(l) Sub-Committee on Trade and Sustainable Development.

2. Except as otherwise provided in this Part of the Agreement, Article 1.4 of Part IV of this

Agreement applies to the sub-committees and other bodies referred to in paragraph 1.

3. The sub-committees and other bodies referred to in paragraph 1 may make appropriate

recommendations in the cases provided for under this Part of the Agreement.

4. Recommendations shall be made by mutual consent.

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ARTICLE 1.11

Relationship with Civil Society

1. Each Party shall meet at least once a year its respective domestic advisory group referred to in

Article 1.7 (Domestic Advisory Groups) of Part IV of this Agreement to discuss matters relating to

the application of this Part of the Agreement.

2. When the Joint Council or the Joint Committee meets in its trade configuration, it shall

convene a meeting of the Civil Society Forum referred to in Article 1.8 (Civil Society Forum) of

Part IV of this Agreement in order to conduct a dialogue on the application of this Part of the

Agreement.

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CHAPTER 2

TRADE IN GOODS

SECTION A

General Provisions

ARTICLE 2.1

Definitions

For the purposes of this Chapter:

(a) "consular transactions" means the procedure of obtaining from a consul of the importing Party

in the territory of the exporting Party or in the territory of a third party a consular invoice or a

consular visa for a commercial invoice, certificate of origin, manifest, shipper's export

declaration or any other customs documentation required on or in connection with the

importation of a good;

& /en 87

(b) "export licensing procedure" means an administrative procedure requiring the submission of

an application or other documentation, other than that generally required for customs

clearance purposes, to the relevant administrative body or bodies of the exporting Party as a

prior condition for exportation from the territory of the exporting Party;

(c) "Import Licensing Agreement" means the Agreement on Import Licensing Procedures, set out

in Annex 1A to the WTO Agreement.

(d) "import licensing procedure" means an administrative procedure requiring the submission of

an application or other documentation, other than that generally required for customs

clearance purposes, to the relevant administrative body or bodies of the importing Party as a

prior condition for importation into the territory of the importing Party.

ARTICLE 2.2

Scope

Unless otherwise provided for in this Agreement, this Chapter applies to trade in goods of a Party.

& /en 88

ARTICLE 2.3

National Treatment

1. Each Party shall accord national treatment to the goods of the other Party in accordance with

Article III of GATT 1994, including its Notes and Supplementary Provisions. To that end,

Article III of GATT 1994 and its Notes and Supplementary Provisions are incorporated into and

made part of this Agreement, mutatis mutandis.

2. For greater certainty, national treatment means, with respect to a level of government in

Mexico other than at the federal level, or a level of government of or in a Member State of the

European Union, treatment no less favourable than that accorded by that level of government to

like, directly competitive or substitutable goods of Mexico or the Member State, respectively.

ARTICLE 2.4

Elimination or Reduction of Customs Duties

1. Unless otherwise provided for in this Agreement, each Party shall eliminate or reduce its

customs duties on originating goods in accordance with Annex 2-A (Tariff Elimination Schedule)

and shall not apply any customs duty upon the entry into force of this Agreement to originating

goods classified in tariff lines of Chapters 1 to 97 of the Harmonized System other than those

included respectively in Appendices 2-A-1 (Tariff Elimination Schedule of the European Union)

or 2-A-2 (Tariff Elimination Schedule of Mexico) to Annex 2-A (Tariff Elimination Schedule).

& /en 89

2. Unless otherwise provided for in this Agreement, a Party shall not increase any existing

customs duty, or adopt any new customs duty, on an originating good of the other Party.7

3. If a Party reduces its applied most-favoured-nation customs duty rate, that duty rate shall

apply to originating goods of the other Party for as long as it is lower than the customs duty rate

determined pursuant to Annex 2-A (Tariff Elimination Schedule).

4. On request of a Party, the Parties shall consult to consider the possibility of improving the

tariff treatment for market access of originating goods set out in Annex 2-A (Tariff Elimination

Schedule). The Joint Council may take a decision to modify Annex 2-A (Tariff Elimination

Schedule).8

5. For greater certainty, a Party may maintain or increase a customs duty on the originating good

as authorised by the Dispute Settlement Body of the WTO.

7 For greater certainty, following a unilateral reduction of a customs duty, a Party may raise that

customs duty to the level determined for the respective year of the tariff elimination schedule

in accordance with Annex 2-A (Tariff Elimination Schedule). 8 For greater certainty; that modification shall supersede any customs duty rate or staging

category set out in Annex 2-A (Tariff Elimination Schedule).

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ARTICLE 2.5

Export Duties, Taxes or Other Charges

1. A Party shall not adopt or maintain any tax or charge on the exportation of a good to the

territory of the other Party that is in excess of that imposed on that good when destined for domestic

consumption.

2. A Party shall not adopt or maintain any duty or charge of any kind imposed on, or in

connection with, the exportation of a good to the territory of the other Party that is in excess of that

imposed on that good when destined for domestic consumption.

3. Nothing in this Article shall prevent a Party from imposing on the exportation of a good a fee

or charge that is permitted under Article 2.6.

ARTICLE 2.6

Fees and Formalities

1. Fees and other charges imposed by a Party on, or in connection with, the importation of a

good of the other Party or exportation of a good to the other Party shall be limited in amount to the

approximate cost of services rendered, and shall not represent an indirect protection to domestic

goods or a taxation of imports or exports for fiscal purposes.

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2. A Party shall not apply a customs-processing fee on originating goods.9

3. Each Party shall publish all fees and charges it imposes in connection with importation or

exportation in such a manner as to enable governments, traders and other interested parties to

become acquainted with them.

4. A Party shall not require consular transactions, including related fees and charges, in

connection with the importation of a good of the other Party.10

ARTICLE 2.7

Goods Re-Entered after Repair or Alteration

1. "repair or alteration" means any processing operation undertaken on a good to remedy

operating defects or material damage and entailing the re-establishment of the good to its original

function or to ensure compliance with technical requirements for its use, without which the good

could no longer be used in the normal way for the purposes for which it was intended. Repair of a

good includes restoration and maintenance but does not include an operation or process that:

(a) destroys the essential characteristics of a good, or creates a new or commercially different

good;

9 For Mexico, the customs processing fee refers to the "Derecho de Trámite Aduanero". 10 For greater certainty, the importing Party may require, the consularisation of documents by its

consul with jurisdiction in the territory of the exporting Party:

(a) for investigation or audit purposes, or

(b) for the importation of household effects.

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(b) transforms an unfinished good into a finished good; or

(c) is used to substantially change the function of a good.

2. A Party shall not apply a customs duty to a good, regardless of its origin, that re-enters its

territory after that good has been temporarily exported from its territory to the territory of the other

Party for repair or alteration, regardless of whether such repair or alteration could be performed in

the territory of the Party from which the good was exported for repair or alteration.

3. Paragraph 2 does not apply to a good imported in bond, into free trade zones, or in similar

status, that is then exported for repair and is not re-imported in bond, into free trade zones, or in

similar status.

4. A Party shall not apply a customs duty to a good, regardless of its origin, imported

temporarily from the territory of the other Party for repair or alteration.

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ARTICLE 2.8

Remanufactured Goods

1. "remanufactured good" means a good classified in Chapters 84 to 90 or in heading 9402 of

the Harmonized System, except goods included in Annex 2-B (List of Goods Excluded from the

Definition of Remanufactured Goods), that:

(a) is entirely or partially produced from recovered materials of goods that have been used;

(b) has similar performance and working conditions as well as life expectancy as the like good in

new condition; and

(c) is given the same warranty as the like good in new condition.

2. Unless otherwise provided for in this Agreement, a Party shall not accord to remanufactured

goods of the other Party a treatment that is less favourable than that it accords to like goods in new

condition.

3. Subject to its obligations under this Agreement and the WTO Agreement, a Party may require

that remanufactured goods:

(a) be identified as such for distribution or sale in its territory, including specifically labelled in

order to prevent deception of consumers; and

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(b) meet all applicable technical requirements and regulations that apply to like goods in new

condition.

4. For greater certainty, Article 2.9 applies to remanufactured goods. If a Party adopts or

maintains import or export prohibitions or restrictions on used goods, it shall not apply those

measures to remanufactured goods.

ARTICLE 2.9

Import and Export Restrictions

Unless otherwise provided for in Annex 2-C (Exceptions from Import and Export Restrictions of

Mexico), a Party shall not adopt or maintain any prohibition or restriction on the importation of any

good of the other Party or on the exportation or sale for export of any good destined for the territory

of the other Party, except in accordance with Article XI of GATT 1994, including its Notes and

Supplementary Provisions. To that end, Article XI of GATT 1994, including its Notes and

Supplementary Provisions, are incorporated into and made part of this Agreement, mutatis

mutandis.

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ARTICLE 2.10

Import Licensing

1. Each Party shall adopt and administer any import licensing procedures in accordance with

Articles 1 to 3 of the Import Licensing Agreement.

2. Each Party shall notify to the other Party any new import licensing procedure and any

modification of existing import licensing procedures within 60 days after the date of its publication

and, if possible, no later than 60 days before the new procedure or modification takes effect. The

notification shall include the information specified in paragraph 2 of Article 5 of the Import

Licensing Agreement, as well as the electronic addresses of the official websites, referred to in

paragraph 4 of this Article. A Party shall be deemed to comply with this provision if it notifies the

relevant new import licensing procedure, or any modification thereof, to the Committee on Import

Licensing provided for in Article 4 of the Import Licensing Agreement in accordance with

paragraphs 1 to 3 of Article 5 of the Import Licensing Agreement.

3. On request of a Party, the other Party shall promptly provide any relevant information,

including the information specified in paragraph 2 of Article 5 of the Import Licensing Agreement,

regarding any import licensing procedure that it intends to adopt, has adopted or maintains, or

regarding any modification of existing licensing procedures.

& /en 96

4. Each Party shall publish on the relevant official websites the information it is required to

publish pursuant to subparagraph 4(a) of Article 1 of the Import Licensing Agreement and shall

ensure that the information specified in paragraph 2 of Article 5 of the Import Licensing Agreement

is publicly available.

ARTICLE 2.11

Export Licensing

1. Each Party shall publish any new export licensing procedure, or any modification of an

existing export licensing procedure including, if appropriate, on the relevant official websites. Such

publication shall take place, if practicable, no later than 45 days before the procedure or

modification takes effect, and in any event, no later than the date when the procedure or

modification takes effect.

2. Each Party shall notify to the other Party its existing export licensing procedures

within 60 days after the date of entry into force of this Agreement. Each Party shall notify to the

other Party any new export licensing procedure and any modification of existing export licensing

procedures, within 60 days after the date of its publication. These notifications shall include the

reference to the source where the information required pursuant to paragraph 3 is published and, if

appropriate, the address of the relevant official website.

& /en 97

3. The publication of export licensing procedures shall include the following information:

(a) the texts of its export licensing procedures and any modification thereof;

(b) the goods subject to each export licensing procedure;

(c) for each procedure, a description of the process for applying for an export license and any

criteria an applicant has to fulfil to be eligible to apply for an export license, such as

possessing an activity license, establishing or maintaining an investment, or operating through

a particular form of establishment in a Party's territory;

(d) a contact point or points from which interested persons can obtain further information on the

conditions for obtaining an export license;

(e) the administrative body or bodies to which an application or other relevant documentation is

to be submitted;

(f) a description of any measure or measures being implemented through the export licensing

procedure;

(g) the period during which each export licensing procedure will be in effect, unless the

procedure will remain in effect until it is withdrawn or revised in a new publication;

& /en 98

(h) if the Party intends to use an export licensing procedure to administer an export quota, the

overall quantity, the opening and closing dates of the quota and, if applicable, the value of the

quota; and

(i) any exemptions from or exceptions to the requirement to obtain an export license, how to

request or use those exemptions or exceptions, and the criteria for granting them.

4. For greater certainty, nothing in this Article requires a Party to grant an export license, or

prevents a Party from implementing its obligations or commitments under the United Nations

Security Council Resolutions, as well as multilateral non-proliferation regimes and export control

arrangements.

ARTICLE 2.12

Customs Valuation

The Parties affirm their rights and obligations under the Customs Valuation Agreement.

& /en 99

ARTICLE 2.13

Temporary Admission of Goods

1. Each Party shall grant temporary admission with total conditional relief from import duties, as

provided for in its laws and regulations, for the following goods, regardless of their origin:

(a) goods intended for display or use at exhibitions, fairs, meetings, demonstrations or similar

events;

(b) professional equipment, including equipment for the press or for sound or television

broadcasting, software, cinematographic equipment, and any ancillary apparatus or

accessories for such equipment, that is necessary for carrying out the business activity, trade

or profession of a person visiting the territory of the Party to perform a specified task;

(c) containers, commercial samples, advertising films and recordings and other goods imported in

connection with a commercial operation;

(d) goods imported for sports purposes;

(e) goods imported for humanitarian purposes; and

(f) animals imported for specific purposes.

& /en 100

2. Each Party may require that the goods benefiting from temporary admission in accordance

with paragraph 1:

(a) are intended for re-exportation without having undergone any change except normal

depreciation due to the use made of them;

(b) are used solely by or under the personal supervision of a national of the other Party in the

exercise of the business activity, trade, profession or sport of that person of the other Party;

(c) are not sold or leased while in its territory;

(d) are accompanied by a security, if requested by the importing Party, in an amount no greater

than the charges that would otherwise be owed on entry or final importation, releasable on

exportation of the goods;

(e) can be identified when imported and exported;

(f) are re-exported within a specified period reasonably related to the purpose of the temporary

admission; and

(g) are admitted in no greater quantity than is reasonable for their intended use.

& /en 101

3. Each Party shall permit goods temporarily admitted under this Article to be re-exported

through any customs port or office other than the one through which they were admitted.

4. Each Party shall provide that the importer or other person responsible for goods admitted in

accordance with this Article shall not be liable for failure to export the goods, within the period

fixed for temporary admission, including any lawful extension, on presentation of satisfactory proof

to the importing Party, in accordance with its customs legislation, that the goods were totally

destroyed or irretrievably lost.

ARTICLE 2.14

Cooperation

1. Special provisions on administrative cooperation between the Parties in relation to preferential

tariff treatment are set out in Annex 2-D (Special Provisions on Administrative Cooperation).

2. The Parties shall annually exchange import statistics starting one year after the entry into

force of this Agreement, until the Committee on Trade in Goods decides otherwise. The exchange

of import statistics shall cover data pertaining to the most recent year available, including value and

volume, at the tariff line level for imports of goods of the other Party benefitting from preferential

duty treatment under this Agreement and of those receiving non-preferential treatment.

& /en 102

ARTICLE 2.15

Committee on Trade in Goods

The Committee on Trade in Goods established by Article 1.10.1(a) (Sub-Committees and Other

Bodies of Part III of this Agreement) shall:

(a) monitor the implementation and administration of this Chapter and its Annexes;

(b) promote trade in goods between the Parties, including through consultations on improving

market access tariff treatment under this Agreement and other issues, as appropriate;

(c) provide a forum to discuss and resolve any issues related to this Chapter;

(d) promptly address barriers to trade in goods between the Parties, especially those related to the

application of non-tariff measures and, if appropriate, referring such matters to the Joint

Committee for its consideration;

(e) recommend to the Joint Committee any modification of or addition to this Chapter;

(f) coordinate the data exchange for preference utilisation or any other information exchange on

trade in goods between the Parties that it may decide;

& /en 103

(g) review any future amendments of the Harmonized System to ensure that each Party's

obligations under this Agreement are not altered, and consulting to resolve any related

conflict;

(h) perform any other functions that the Joint Committee may assign to it.

SECTION B

Trade in Agricultural Goods

ARTICLE 2.16

Scope

This Section applies to measures adopted or maintained by a Party relating to trade in agricultural

goods.

& /en 104

ARTICLE 2.17

Cooperation in Multilateral Fora

1. The Parties shall cooperate under the WTO to promote a universal, rules-based, open, non-

discriminatory and equitable multilateral trading system, to advance agriculture negotiations, and to

promote the establishment of any new disciplines facilitating trade in agricultural goods.

2. The Parties recognise that some export measures, such as export prohibitions, export

restrictions or export taxes may have a detrimental effect on critical supplies of agricultural goods.

In this respect, the Parties shall support the establishment of disciplines through an active

participation in the relevant international fora.

ARTICLE 2.18

Export Competition

1. For the purposes of this Article:

(a) "export subsidies" means subsidies within the meaning of paragraph (e) of Article 1 of the

Agreement on Agriculture; and

& /en 105

(b) "measures with equivalent effect" means export credits, export credit guarantees or insurance

programmes, as well as other measures that have an equivalent effect to an export subsidy11.

2. The Parties affirm their commitments in the Decision on Export Competition adopted

on 19 December 2015 by the Ministerial Conference of the WTO in Nairobi to exercise utmost

restraint with regard to any recourse to all forms of export subsidies and all export measures with

equivalent effect and to enhance transparency and to improve monitoring in relation to all forms of

export subsidies and all export measures with equivalent effect.

3. A Party shall not adopt or maintain any export subsidy on any agricultural good that is

exported or incorporated in a good that is exported to the territory of the other Party.

4. A Party shall not maintain, introduce or reintroduce any other measure with equivalent effect

on an agricultural good that is exported or incorporated in a good that is exported to the territory of

the other Party, unless that measure with equivalent effect complies with the terms and conditions

determined in the relevant WTO Agreement, decision or commitment.

5. With the aim of enhancing transparency and improving monitoring in relation to export

subsidies and other measures with equivalent effect, a Party which has a reasonable doubt about an

export subsidy or other measure with equivalent effect applied by the other Party on an agricultural

good destined for export to the former Party, may require the necessary information on the

measures applied from the other Party. The information required shall be provided without delay.

11 In interpreting the term "measures with equivalent effect", for a specific case, the Parties may

seek guidance in the relevant WTO rules as well as in the practice of the WTO membership.

& /en 106

ARTICLE 2.19

Administration of Tariff Rate Quotas

1. A Party applying tariff rate quotas in accordance with Annex 2-A (Tariff Elimination

Schedule), shall:

(a) administer those tariff rate quotas in a timely manner and in a transparent, objective and non-

discriminatory way in accordance with its law; and

(b) make publicly available in a timely and continuous manner all relevant information

concerning quota administration, including the volume available, utilisation rates and

eligibility criteria.

2. The Parties shall consult regarding any matter related to the administration of the tariff rate

quotas. For that purpose, each Party shall designate a contact point to facilitate communication

between the Parties and notify the other Party of its contact details. The Parties shall promptly

notify each other of any changes to those contact details.

& /en 107

ARTICLE 2.20

Sub-Committee on Agriculture

1. The Sub-Committee on Agriculture established by Article 1.10.1(b) (Sub-Committees and

Other Bodies of Part III of this Agreement) shall:

(a) monitor the implementation and administration of this Section, and promote cooperation in

order to facilitate trade in agricultural goods between the Parties;

(b) provide a forum for the Parties to discuss developments in their agricultural programs and

trade in agricultural goods between the Parties;

(c) address barriers, including non-tariff barriers, to trade in agricultural goods between the

Parties;

(d) evaluate the impact of this Chapter on the agricultural sector of each Party, as well as the

operation of the instruments of this Chapter, and recommend any appropriate action to the

Committee on Trade in Goods;

(e) provide a forum to consult on matters related to this Section in coordination with other

relevant committees, working groups or any other specialised body under this Agreement;

& /en 108

(f) undertake any other functions that the Committee on Trade in Goods may assign to it; and

(g) report the results of its work under this paragraph to the Committee on Trade in Goods for its

consideration.

3. The Sub-Committee on Agriculture shall meet at least once a year, unless otherwise agreed.

4. When special circumstances arise, on request of a Party, the Sub-Committee on Agriculture

shall meet, by agreement of the Parties, no later than 30 days after the date of such request.

SECTION C

Trade in Wine and Spirits

ARTICLE 2.21

Scope

This Section applies to wine products12 and spirits classified under headings 2204, 2205 and 2208

of the Harmonized System.

12 For greater certainty, "wine products" means wine and other wine products classified under

headings 2204 and 2205 of the Harmonized System.

& /en 109

ARTICLE 2.22

Oenological Practices

1. The European Union shall authorise the importation and marketing in its territory for human

consumption of wine originating in Mexico and produced in compliance with:

(a) product definitions authorised in Mexico by the laws and regulations referred to in Part A of

Annex 2-E (Relevant Measures on Wine Products and Spirits); and

(b) oenological practices authorised and restrictions applied in Mexico pursuant to the laws and

regulations referred to in Part A of Annex 2-E (Relevant Measures on Wine Products and

Spirits) or otherwise approved for use in wines for export by the competent authority of

Mexico, in so far as they are recommended and published by the International Organisation of

the Vine and Wine (hereafter referred to as "OIV").

The authorisation of this paragraph is subject to the requirement that no alcohol or spirits are added

to the wines with the exception of liquor wines to which alcohol of vine origin or grape spirit may

be added. This subparagraph is without prejudice to the possibility of adding alcohol different from

alcohol of vine origin in the production of "vino generoso", provided that such an addition is clearly

displayed on the label.

& /en 110

2. Mexico shall authorise the importation and marketing in its territory for human consumption

of wine originating in the European Union and produced in compliance with:

(a) product definitions authorised in the European Union by the laws and regulations referred to

in Part B of Annex 2-E (Relevant Measures on Wine Products and Spirits);

(b) oenological practices authorized and restrictions applied in the European Union pursuant to

the laws and regulations referred to in Part B of Annex 2-E (Relevant Measures on Wine

Products and Spirits); and

(c) the fact that the addition of alcohol or spirits is excluded for all wines other than liqueur wines

to which only alcohol of vine origin or grape spirit may be added.

3. Vine varieties that may be used in wines imported from a Party and marketed in the territory

of the other Party are varieties of plants of the "vitis vinifera" and hybrids thereof, without prejudice

to any more restrictive laws and regulations which a Party may have in respect of wine produced in

its territory.

4. The Joint Council may modify Parts A and B of Annex 2-E (Relevant Measures on Wine

Products and Spirits) for adding, deleting or updating the references to product definitions, and

oenological practices and restrictions.

& /en 111

ARTICLE 2.23

Labelling of Wine Products and Spirits

1. A Party shall not require any of the following dates or their equivalent to be displayed on the

container, label, or packaging of wine products or spirits:

(a) date of packaging;

(b) date of bottling;

(c) date of production or manufacture;

(d) date of expiration, "use by" date, "use or consume by" date, "expire by" date;

(e) date of minimum durability, "best-by" date, "best quality before" date; or

(f) "sell-by" date.

A Party may require the display of a date of minimum durability in case of the addition of

perishable ingredients or in case of a durability considered by the producer of less than or equal

to 12 months.

& /en 112

2. A Party shall not require translations of trademarks, brand names or geographical indications

to be displayed on containers, labels, or packaging of wine products or spirits.

3. A Party shall permit mandatory information, including translations, to be displayed on a

supplementary label affixed to a container of wine products or spirits. Supplementary labels may be

affixed to imported container of wine or spirit after importation but prior to offering the product for

sale in the Party's territory, provided that the mandatory information of the original label is fully and

accurately reflected.

4. A Party shall permit the use of identification lot codes provided that those codes are preserved

from deletion.

5. A Party shall not apply a labelling measure to wine products and spirits that were marketed in

the territory of that Party prior to the date on which the measure entered into force, except under

exceptional circumstances.

6. A Party shall permit the use of drawings, figures, illustrations and claims or legends on bottles

provided that they do not replace mandatory labelling information and do not mislead the consumer

as to the real characteristics and composition of the wines products and spirits.

7. A Party shall not require that labels of wine products or spirits display allergen labelling with

regard to allergens which have been used in the production and preparation of the wine products or

spirit and which are not present in the final product.

& /en 113

8. For trade in wine between the Parties, wine originating in the European Union may be

labelled in Mexico with an indication of the product type as specified in Part C (Labelling of

Wines) of Annex 2-E (Relevant Measures on Wine Products and Spirits).

9. Each Party shall protect the following names with regard to wine products and spirits, in

conformity with the Paris Convention for the Protection of Industrial Property, done at Paris

on 20 March 1883 (hereinafter referred to as "the Paris Convention"):

(a) the name of a Member State; and

(b) the name of the United Mexican States or Mexico and its States.

10. A Party shall permit labels of wine products or spirits to express the alcoholic content by

volume in the following acronyms:

(a) "% Alc. Vol.";

(b) "% Alc Vol.";

(c) "% alc. vol.";

(d) "% alc vol.";

& /en 114

(e) "% Alc.";

(f) "% Alc./Vol.";

(g) "Alc( )%vol.";

(h) "% alc/vol";

(i) "alc( )%vol".

ARTICLE 2.24

Certification of Wine Products and Spirits

1. A Party may require, for wine products imported from the other Party and placed on its

market, only the documentation and certification set out in Part D (Documentation and

Certification) of Annex 2-E (Relevant Measures on Wine Products and Spirits).

2. A Party shall not submit the import of wine products produced in the territory of the other

Party to more restrictive import certification requirements than those laid down in this Agreement.

& /en 115

3. Each Party may apply its laws and regulations in order to identify adulterated or contaminated

products after their final importation.

4. In case of a dispute, each Party shall recognise as reference methods, the methods of analysis

complying with the standards recommended by international organisations such as the International

Organization for Standardization (ISO) or, in case those methods do not exist, the methods of the

OIV.

5. Each Party shall authorise the importation in its territory of spirits in accordance with the rules

governing import documentation or certification and analysis reports as provided for in its laws and

regulations.

6. The European Union shall require for the importation of Tequila and Mezcal into the

European Union the presentation to its customs authorities of an export authenticity certificate of

those products issued by the conformity assessment bodies accredited and approved by the Mexican

authorities.13 Mexico shall provide models of the export authenticity certificate of Tequila and

Mezcal and notify any changes related to those certificates to the Sub-Committee on Trade in

Wines and Spirits.

13 For greater certainty, this is without prejudice to the laws and regulations of each Party for the

marketing and commercialisation of those products.

& /en 116

7. A Party may introduce temporary additional import certification requirements for wines

products and spirits imported from the other Party in response to legitimate public policy concerns,

such as health or consumer protection, or in order to act against fraud. In such case, the Party shall

provide to the other Party adequate information and sufficient time to permit the fulfilment of the

additional requirements.

Such requirements shall not extend beyond the period of time necessary to respond to the particular

public policy concern or risk of fraud in response to which they were introduced.

8. The Joint Council may modify Part D (Documentation and Certification) of Annex 2-E

(Relevant Measures on Wine Products and Spirits) with regard to the documentation and

certification referred to in paragraph 1.

ARTICLE 2.25

Applicable Rules

Unless otherwise provided for in this Agreement, importation and marketing of products covered by

this Section, traded between the Parties, shall be conducted in compliance with the laws and

regulations applying in the territory of the Party of importation.

& /en 117

ARTICLE 2.26

Transitional Measures

Products which, at the date of entry into force of this Agreement, have been produced and labelled

in accordance with the laws and regulations of a Party and the existing agreements between the

Parties, but do not comply with this Section may be marketed in the importing Party under the

following conditions:

(a) by wholesalers or producers, for a period of two years; or

(b) by retailers, until stocks are exhausted.

ARTICLE 2.27

Notifications

Each Party shall ensure timely notification to the other Party of any amendments to laws and

regulations on matters covered by this Section that have an impact on products traded between

them.

& /en 118

ARTICLE 2.28

Cooperation on Trade in Wines and Spirits

1. The Parties shall cooperate on and address matters related to trade in wines and spirits, in

particular:

(a) product definitions, certification and labelling; and

(b) the use of grape varieties in winemaking and labelling thereof.

2. To facilitate mutual assistance between the enforcement authorities of the Parties, each Party

shall designate the competent authorities and bodies responsible for the implementation and

application of matters covered by this Section. If a Party designates more than one competent

authority or body, it shall ensure coordination between those authorities and bodies. In that case, a

Party shall also designate a single liaison authority that should serve as the single contact point for

the authority or body of the other Party.

3. The Parties shall inform each other of the names and addresses of the competent authorities

and bodies referred to in paragraph 2, and any changes thereto, no later than six months after the

date of entry into force of this Agreement.

& /en 119

4. The authorities and bodies referred to in this Article shall closely cooperate and seek ways for

further improving assistance with each other in the application of this Section, in particular in order

to combat fraudulent practices.

ARTICLE 2.29

Sub-Committee on Trade in Wines and Spirits

1. The Sub-Committee on Trade in Wines and Spirits established by Article 1.10.1(c) (Sub-

Committees and Other Bodies of Part III of this Agreement) shall:

(a) monitor the implementation and administration of this Section;

(b) provide a forum for cooperation on matters relating to this Section and exchange of

information; and

(c) ensure the proper functioning of this Section.

2. The Sub-Committee on Trade in Wines and Spirits may make recommendations and prepare

decisions for the Joint Council which may be adopted as provided for in this Section.

& /en 120

SECTION D

Non-Tariff Market Access Commitments for Other Sectors

ARTICLE 2.30

Pharmaceuticals

Specific non-tariff market access commitments of each Party relating to pharmaceutical products

and medical devices are set out in Annex 2-F (Pharmaceuticals).

ARTICLE 2.31

Motor Vehicles

Specific non-market access commitments of each Party relating to motor vehicles and equipment,

and parts thereof, are set out in Annex 2-G (Motor Vehicles and Equipment and Parts Thereof).

& /en 121

CHAPTER 3

RULES OF ORIGIN AND ORIGIN PROCEDURES

SECTION A

Rules of Origin

ARTICLE 3.1

Definitions

1. For the purposes of this Chapter:

(a) "chapters", "headings" and "subheadings" means the chapters (two-digit codes), the headings

(four-digit codes) and sub-headings (six-digit codes) used in the nomenclature of the

Harmonized System;

(b) "competent governmental authority" means in the case of Mexico, the designated authority

within the Ministry of Economy (Secretaría de Economía), or its successor;

& /en 122

(c) "consignment" means goods which are either sent simultaneously from one exporter to one

consignee or covered by a single transport document covering their shipment from the

exporter to the consignee or, in the absence of such a document, by a single invoice;

(d) "customs authorities" means the governmental authority that is responsible under the law of a

Party for the administration, application and enforcement of customs laws and regulations;

(e) "exporter" means a person located in the territory of a Party who exports from the territory of

that Party and makes out a statement on origin;

(f) "importer" means a person located in the territory of a Party who imports a good and claims

preferential tariff treatment;

(g) "material" means any ingredient, raw material, component, part, or the like, used in the

production of the product;

(h) "non-originating materials" means materials which do not qualify as originating under this

Chapter;

(i) "originating materials" or "originating products" means materials or products which qualify as

originating under this Chapter;

& /en 123

(j) "product" means the product being manufactured, even if it is intended as a material for later

use in the production of another product; and

(k) "production" means any kind of working, processing or specific operations, including

assembly.

ARTICLE 3.2

General Requirements

1. For the purposes of applying the preferential tariff treatment by a Party to the originating good

of the other Party in accordance with this Agreement, the following products shall be considered as

originating in the Party where the last production took place:

(a) products wholly obtained in that Party within the meaning of Article 3.4;

(b) products produced in that Party exclusively from originating materials; or

(c) products produced in that Party incorporating non-originating materials, provided they fulfil

the conditions set out in Annex 3-A (Product Specific Rules of Origin).

2. A product considered as originating in a Party in accordance with paragraph 1 has to meet all

other applicable requirements of this Chapter for granting preferential tariff treatment based on a

claim pursuant to Article 3.16.

& /en 124

3. If a product has acquired originating status, the non-originating materials used in the

production of that product shall not be considered non-originating when that product is incorporated

as a material in another product.

4. For the acquisition of the originating status, the product has to be produced as referred to in

subparagraphs 1(a) to 1(c) without interruption in a Party.

ARTICLE 3.3

Cumulation of Origin

1. A product originating in a Party shall be considered as an originating product of the other

Party if it is used as a material in the production of another product in that other Party14.

2. Paragraph 1 does not apply if:

(a) the production of a product does not go beyond the operations referred to in Article 3.6; and

(b) the object of this production, as demonstrated on the basis of a preponderance of evidence, is

to circumvent financial or tax law of the Parties.

14 When the rules of origin for a material differ between the Parties, the origin of that material

shall be determined in accordance with the rules of origin applicable to the exporting Party.

& /en 125

ARTICLE 3.4

Wholly Obtained Products

1. The following products shall be considered as wholly obtained in a Party:

(a) mineral products extracted from its soil or from its seabed;

(b) plants and vegetable products grown or harvested there;

(c) live animals born and raised there;

(d) products from live animals raised there;

(e) products obtained from slaughtered animals born and raised there;

(f) products obtained by hunting or fishing conducted there;

(g) products obtained from aquaculture there, if aquatic organisms, including fish, molluscs,

crustaceans, other aquatic invertebrates and aquatic plants are born or raised from seed stock

such as eggs, roes, fry, fingerlings or larvae, by intervention in the rearing or growth

processes to enhance production such as regular stocking, feeding or protection from

predators;

& /en 126

(h) products of sea fishing and other products taken from the sea outside any territorial sea by a

vessel of a Party;

(i) products produced on board of a factory ship of a Party exclusively from products referred to

in subparagraph (h);

(j) used articles collected there fit only for the recovery of raw materials, including those raw

materials;

(k) waste and scrap resulting from production operations conducted there;

(l) products extracted from the seabed or subsoil thereof outside the territorial sea of a Party,

provided that they have rights to exploit or work such seabed or subsoil; or

(m) goods produced there exclusively from the products specified in subparagraphs (a) to (l).

2. The terms "vessel of a Party" and "factory ship of a Party" in subparagraph 1(h) and 1(i) mean

a vessel or a factory ship which:

(a) is registered in a Member State or in Mexico;

(b) sails under the flag of a Member State or Mexico; and

& /en 127

(c) meets one of the following conditions:

(i) it is at least 50 % owned by nationals of a Member State or Mexico; or

(ii) it is owned by enterprises which:

(A) have their head office and main place of business in the European Union or

Mexico; and

(B) are at least 50 % owned by public entities, nationals or enterprises of a Member

State or Mexico.

ARTICLE 3.5

Tolerances

1. If a product does not satisfy the requirements set out in Annex 3-A (Product Specific Rules of

Origin) due to the use of a non-originating material in the production, that product shall

nevertheless be considered as originating in a Party provided that:

(a) the total value of that non-originating material does not exceed 10 % of the ex-works price of

the product; and

& /en 128

(b) any of the percentages set out in Annex 3-A (Product Specific Rules of Origin) for the

maximum value or weight of non-originating materials are not exceeded through the

application of this paragraph.

2. Paragraph 1 does not apply to products classified under Chapters 50 to 63, for which the

tolerances set out in Notes 5 and 6 of Section A of Annex 3-A (Product Specific Rules of Origin)

apply.

3. Paragraph 1 does not apply to products wholly obtained in a Party within the meaning of

Article 3.4. If Annex 3-A (Product Specific Rules of Origin) requires that the materials used in the

production of a product are wholly obtained, the tolerance provided for in paragraph 1 applies to the

sum of those materials.

ARTICLE 3.6

Insufficient Working or Processing Operations

1. Notwithstanding Article 3.2.1(c), a product shall not be considered as originating in a Party if

the production of the product in a Party consists only of the following operations performed on non-

originating materials:

(a) operations to ensure the preservation of products in good condition during transport and

storage such as ventilation, spreading out, drying, freezing, chilling, placing in salt, sulphur

dioxide or other aqueous solutions, removal of damaged parts, and like operations;

& /en 129

(b) simple addition of water or dilution that does not materially alter the characteristics of the

product or dehydration or denaturation15 of products;

(c) sifting, screening, sorting, classifying, grading or matching, including the making-up of sets

of articles;

(d) sharpening, simple grinding or simple cutting;

(e) peeling, stoning or shelling of fruits, nuts or vegetables;

(f) husking;

(g) removing of grains;

(h) polishing or glazing of cereals and rice, partial or total milling of rice;

(i) operations to colour or flavour sugar or form sugar lumps; partial or total milling of crystal

sugar;

(j) changes of packaging, breaking up and assembly of packages;

(k) simple packaging operations;

15 Denaturation covers making alcohol unfit for human consumption by the addition of toxic or

foul-tasting substances.

& /en 130

(l) affixing or printing marks, labels, logos and other like distinguishing signs on products or

their packaging;

(m) washing, cleaning, the removal of dust, oxide, oil, paint or other coverings;

(n) simple painting and polishing operations;

(o) simple mixing of products16, whether or not of different kinds;17

(p) assembly of parts classified as complete or finished article in accordance with General

Interpretative Rule 2(a) of the General Rules for the Interpretation of the Harmonized System

or other simple assembly of parts;

(q) disassembly of a product into parts or components;

(r) ironing or pressing of textiles and textile articles;

(s) slaughter of animals; or

(t) a combination of two or more operations specified in subparagraphs (a) to (s).

16 Simple mixing of products covers mixing of sugar. 17 These operations do not apply to mixing and blending in Chapters 27 to 30, 32 to 35 and 38.

& /en 131

2. For the purposes of paragraph 1, operations shall be considered simple if neither special skills

nor machines, apparatus or tools especially produced or installed for those operations are required

for their performance and the operations resulting from those skills, machines, apparatus or tools do

not confer the essential character or properties of the good.

ARTICLE 3.7

Unit of Qualification

1. For the application of this Chapter the unit of qualification shall be the particular product,

which is considered as the basic unit when classifying the product under the Harmonized System.

2. For a product composed of a group or assembly of articles, which is classified under the terms

of the Harmonized System in a single heading, the whole constitutes the unit of qualification;

3. For a consignment consisting of a number of identical products classified under the same

heading, each product shall be considered individually when applying this Chapter.

& /en 132

ARTICLE 3.8

Accounting Segregation

1. If originating and non-originating fungible materials are used in the production of a good, the

management of materials may be done by using an accounting segregation method without keeping

the materials in separate stocks.

2. If originating and non-originating fungible products of Chapters 10, 15, 27, 28, 29,

headings 32.01 to 32.07, or headings 39.01 to 39.14 are physically combined or mixed in stocks in a

Party before exportation to the other Party, the management of those products may be done by using

an accounting segregation method without keeping those products in separate stocks.

3. For the purposes of paragraphs 1 and 2, fungible materials or fungible products are materials

or products that are of the same kind and commercial quality, with the same technical and physical

characteristics, and which cannot be distinguished one from another, in the case of materials, once

they are incorporated into the finished product.

4. The accounting segregation method used for managing stocks shall be applied pursuant to a

stock management system which is in accordance with accounting principles generally accepted in

the Party.

& /en 133

5. The stock management system must ensure at any time that the number of products obtained,

which could be considered as originating products in a Party, is no more than the number that would

have been obtained by using a method of physical segregation of the stocks.

6. A manufacturer using a stock management system must keep records of the operation of the

system that are necessary for the customs authorities of the Party concerned to verify compliance

with the provisions of this Chapter.

7. A Party may require that the use of accounting segregation pursuant to this Article is subject

to prior authorisation by the customs authorities of that Party.

8. The customs authorities of a Party may make the granting of the authorisation referred to in

paragraph 7 subject to any conditions they deem appropriate and may withdraw the authorisation if

the manufacturer makes improper use thereof or fails to fulfil any of the other conditions set out in

this Chapter.

ARTICLE 3.9

Accessories, Spare Parts and Tools

1. Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus

or vehicle, which are part of the normal equipment and included in the price thereof or which are

not separately invoiced, shall be regarded as one product with the piece of equipment, machine,

apparatus or vehicle in question.

& /en 134

2. The accessories, spare parts and tools referred to in paragraph 1 shall be disregarded in

determining the origin of the product except for the purposes of calculating the maximum value of

non-originating materials if a product is subject to a maximum value of non-originating materials

set out in Annex 3-A (Product Specific Rules of Origin).

ARTICLE 3.10

Sets

Sets, as defined in General Rule 3 for the Interpretation of the Harmonized System, shall be

considered as originating in a Party if all of their components are originating goods. If a set is

composed of originating and non-originating goods, the set as a whole shall be considered as

originating in a Party, provided the value of the non-originating goods does not exceed 15 % of the

ex-works price of the set.

ARTICLE 3.11

Neutral Elements

In order to determine whether a product is originating in a Party, it shall not be necessary to

determine the origin of the following elements which might be used in its production:

(a) fuel, energy, catalysts and solvents;

& /en 135

(b) equipment, devices and supplies used to test or inspect the product;

(c) gloves, glasses, footwear, clothing, safety equipment and supplies;

(d) machines, tools, dies and moulds;

(e) plant, equipment, spare parts and materials used in the maintenance of equipment and

buildings;

(f) lubricants, greases, compounding materials and other materials used in production or used to

operate equipment and buildings; and

(g) other materials which are not incorporated nor intended to be incorporated into the final

composition of the product.

ARTICLE 3.12

Packing Materials, Packaging Materials and Containers

1. Packaging materials and containers in which the product is packaged for retail sale, if

classified with the product pursuant to General Rule 5 for the Interpretation of the Harmonized

System, shall be disregarded in determining the origin of the product, except for the purposes of

calculating the maximum value of non-originating materials if a product is subject to a maximum

value of non-originating materials in accordance with Annex 3-A (Product Specific Rules of

Origin).

& /en 136

2. Packing materials and containers in which a product is packed for shipment shall be

disregarded in determining the origin of the product.

ARTICLE 3.13

Returned Goods

If originating goods of a Party exported from that Party to a third country are returned, they shall be

considered as non-originating, unless it can be demonstrated to the satisfaction of the customs

authorities that the goods returned:

(a) are the same goods as those exported; and

(b) have not undergone any operation other than that necessary to preserve them in good

condition while in that third country or while being exported.

& /en 137

ARTICLE 3.14

Non-Alteration

1. The goods declared for importation in a Party shall be the same goods as exported from the

other Party in which they are considered originating. Those goods shall not have been altered,

transformed in any way or subjected to operations other than operations to preserve them in good

condition, or other than adding or affixing marks, labels, seals or any other distinguishing signs, to

ensure compliance with specific domestic requirements of the importing Party, prior to being

declared for import.

2. Storage of goods or consignments may take place in a third country provided they remain

under customs supervision in that third country.

3. Without prejudice to the provisions of Section B, the splitting of consignments may take place

in a third country if the splitting is carried out by the exporter or under the exporter's responsibility

and provided the goods remain under customs supervision in that third country.

4. Compliance with paragraphs 1 to 3 shall be considered as satisfied unless the customs

authorities have reasons to believe the contrary. In such a case, the importer, in accordance with the

provisions of the law of each Party, shall provide evidence of compliance by appropriate means,

including through contractual transport documents such as bills of lading, factual or concrete

evidence based on marking, numbering of packages, or any evidence related to the goods

themselves.

& /en 138

ARTICLE 3.15

Exhibitions

1. Originating products sent for exhibition in a third country and sold after the exhibition for

importation in a Party, shall benefit on importation from the provisions of this Agreement provided

it is shown to the satisfaction of the customs authorities that:

(a) an exporter has consigned these products from a Party to the third country in which the

exhibition is held and has exhibited them there;

(b) the products have been sold or otherwise disposed of by that exporter to a person in a Party;

(c) the products have been consigned during the exhibition or immediately thereafter in the same

state in which they were sent for exhibition; and

(d) the products have not, since they were consigned for exhibition, been used for any purpose

other than demonstration at the exhibition.

2. A statement on origin must be made out in accordance with the provisions of Section B and

submitted to the customs authorities of the importing Party in the normal manner. The name and

address of the exhibition must be indicated thereon.

& /en 139

3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar

public show or display, which is not organised for private purposes in shops or business premises

with a view to the sale of those products, and during which the products remain under customs

control.

4. The customs authorities of the importing Party may require evidence that the products have

remained under customs control in the third country of exhibition, as well as additional

documentary evidence of the conditions under which they have been exhibited.

SECTION B

Origin Procedures

ARTICLE 3.16

Claim for Preferential Tariff Treatment and Statement on Origin

1. The importing Party shall, on importation, grant preferential tariff treatment to a product

originating in the other Party within the meaning of Article 3.2 based on a claim by the importer for

preferential tariff treatment, provided all other applicable requirements of this Chapter are met.

& /en 140

2. The claim for preferential tariff treatment shall be based on a statement on origin issued in

accordance with Article 3.18 provided by the exporter on an invoice or any other commercial

document.

3. The claim for preferential tariff treatment and the statement on origin referred to in

paragraph 2, shall be included in the customs import declaration, in accordance with the laws and

regulations of the importing Party.

4. The importer making a claim based on a statement on origin referred to in paragraph 2 shall

be in possession thereof and, when required, provide a copy of the statement on origin to the

customs authority of the importing Party.

5. Paragraphs 2, 3 and 4 do not apply in the cases specified in Article 3.23.

ARTICLE 3.17

Claims for Preferential Treatment after Importation

1. Each Party shall provide that an importer may claim preferential tariff treatment after the

importation and obtain refund of any excess duties paid for the imported good if the importer did

not make a claim for preferential tariff treatment at the time of importation and the good concerned

would have qualified at the time of importation for such claim as originating in accordance with

Article 3.2.

& /en 141

2. The importer shall make a claim for preferential tariff treatment no later than one year after

the date of importation. As a condition for granting preferential tariff treatment pursuant to

paragraph 1, a Party may require that the importer:

(a) provides a copy of the statement of origin for the good concerned;

(b) submits all other documents necessary for the importation of the good; and

(c) declares that the good was originating at the time of importation.

ARTICLE 3.18

Conditions for Making out a Statement on Origin

1. A statement on origin as referred to in Article 3.16.2 may be made out by an exporter

registered:

(a) in Mexico, as an exporter authorised by the competent governmental authority subject to any

conditions which are considered appropriate to verify the originating status of the goods as

well as the fulfilment of the other requirements of this Chapter; and

(b) in the European Union, as an exporter in accordance with the relevant European Union law

(Registered Exporter System).

& /en 142

2. The customs authorities or the competent governmental authority shall grant to the registered

exporter a number which shall appear on the statement on origin. The customs authorities or the

competent governmental authority shall manage the registration process and may withdraw the

registration in case of improper use by the exporter.

3. A statement on origin as referred to in Article 3.16.2 may be made out by any exporter for any

consignment consisting of one or more packages containing originating products whose total value

does not exceed 6 000 euros.

4. The exporter shall make out a statement on origin using one of the linguistic versions of

Annex 3-B (Text of the Statement on Origin) on an invoice or any other commercial document that

describes the originating good in sufficient detail to enable its identification.

5. Statements on origin shall bear the original signature of the exporter in manuscript. An

exporter registered in accordance with paragraph 1 shall not be required to sign such statements

provided that the exporter accepts full responsibility towards the customs authorities or the

competent governmental authority of the exporting Party for any statement on origin which

identifies the exporter as if the statement on origin was signed in manuscript by that exporter.

6. The exporter making out a statement on origin shall be prepared to submit at any time, at the

request of the customs authorities or the competent governmental authority of the exporting Party,

all appropriate documents proving the originating status of the products concerned as well the

fulfilment of the other requirements of this Chapter.

7. The exporter may make out a statement on origin when the goods to which it relates are

exported or after exportation.

& /en 143

ARTICLE 3.19

Validity of the Statement on Origin

1. A statement on origin shall be valid for one year after the date it was made out.

2. A statement on origin may apply to:

(a) a single shipment of a product; or

(b) multiple shipments of identical products within any period specified in the statement on origin

not exceeding 12 months.

ARTICLE 3.20

Importation by Instalments

If, at the request of an importer and in accordance with the conditions laid down by the customs

authorities of the importing Party, dismantled or non-assembled goods within the meaning of

General Rule 2(a) for the interpretation of the Harmonized System falling within Sections XV

to XXI of the Harmonized System are imported by instalments, a single statement on origin for

those goods shall be submitted, as required by the customs authorities, on the importation of the

first instalment.

& /en 144

ARTICLE 3.21

Discrepancies and Minor Errors

1. Minor discrepancies between the statement on origin and the documents submitted to the

customs office for carrying out the formalities for importing the goods shall not, because of that

fact, render the statement on origin null and void, if it is duly established that this document

corresponds to the products concerned.

2. The customs authorities of the importing Party shall not reject a claim for preferential tariff

treatment due to minor errors in the statement on origin, such as typing errors.

ARTICLE 3.22

Record Keeping Requirements

1. An importer claiming preferential tariff treatment for a good imported into a Party shall

possess and keep the statement on origin made out by the exporter for three years after the date of

importation of the product or for a longer period as the importing Party may specify.

& /en 145

2. An exporter who made out a statement on origin shall possess and keep a copy of the

statement on origin, and of all other records demonstrating that the product satisfies the

requirements to obtain originating status, for three years following the making out of that statement

on origin, or for a longer period of time as the exporting Party may specify.

3. The records to be kept in accordance with this Article may be held in electronic form.

ARTICLE 3.23

Exemptions from the Statement on Origin

1. Goods sent as low-value packages from private persons to private persons or forming part of

travellers' personal luggage shall be admitted as originating goods without requiring a statement on

origin, provided that those goods are not imported by way of trade and have been declared as

meeting the requirements of this Chapter, and that there is no doubt as to the veracity of that

declaration.

2. Imports, which are occasional and consist solely of products for the personal use of the

recipients or travellers or their families, shall not be considered as imports by way of trade if, from

the nature and quantity of the goods, it is evident that no commercial purpose is intended, provided

the importation does not form part of a series of importations that may reasonably be considered to

have been made separately for the purpose of avoiding the requirement for a statement on origin.

& /en 146

3. The total value of the goods referred to in paragraph 1 shall not exceed 500 euros or its

equivalent amount in the currency of the Party in the case of low value packages, or 1 200 euros or

its equivalent amount in the currency of the Party in the case of goods which are part of a travellers'

personal luggage.

4. Nothing in this Article shall be construed as preventing a Party from adopting appropriate

customs controls to ensure compliance with the provisions set out in paragraphs 1 to 3.

ARTICLE 3.24

Verification of Origin and Administrative Cooperation

1. The Parties shall provide each other the addresses and contact information of the customs

authorities or the competent governmental authority responsible for verifying the statements on

origin.

2. In order to ensure the proper application of this Chapter, the Parties shall assist each other,

through their customs authorities or the competent governmental authority, to verify whether goods

are originating as well as the authenticity of the statements on origin and the accuracy of the

information provided in those statements.

& /en 147

3. Verifications of the statements on origin shall be carried out at random or whenever the

customs authorities of the importing Party have reasonable doubts as to the authenticity of the

statements, the originating status of the goods concerned or the fulfilment of the other requirements

of this Chapter.

4. For the purposes of implementing the provisions of paragraph 3, the customs authorities of the

importing Party shall request in writing a verification of origin to the customs authority or the

competent governmental authority of the exporting Party, by providing:

(a) the identity of the customs authority issuing the request;

(b) the name of the exporter to be verified;

(c) the subject and scope of the verification; and

(d) a copy of the statement on origin and, if applicable, any other relevant documentation.

5. The customs authority or the competent governmental authority of the exporting Party shall

carry out the verification. For this purpose, they shall have the right to call for any evidence and to

carry out any inspection of the exporter's accounts or any other check that they consider

appropriate.

& /en 148

6. The customs authority or the competent governmental authority of the exporting Party shall

inform the customs authority requesting the verification of the results of this verification as soon as

possible. The results shall be presented in a written report that clearly indicates whether the goods

concerned can be considered as originating, the statement on origin is authentic and the other

requirements of this Chapter are fulfilled. That written report shall include:

(a) the results of the verification;

(b) the description of the goods subject to verification and the tariff classification relevant for the

application of the rules of origin;

(c) a description and explanation of the rationale concerning the originating status of the good;

and

(d) if available, supporting documentation.

7. If in cases of reasonable doubts there is no reply within 10 months after the date of the

verification request, or if the reply does not contain sufficient information to determine the

authenticity of the document in question or the origin of the good, the requesting customs authority

is entitled, except in exceptional circumstances, to refuse to grant preferential tariff treatment.

& /en 149

8. The importing Party shall notify the exporting Party within 60 days after the receipt of the

written report, if there are differences in relation to the verification procedures of this Article, or in

relation to the interpretation of the rules of origin, in determining whether a good qualifies as

originating, and those differences can not be resolved through consultations between the customs

authority requesting the verification and the customs authority or competent governmental authority

responsible for performing the verification.

9. At the request of either Party, the Parties shall hold and conclude consultations within 90 days

after the date of the notification referred to in paragraph 8 to resolve those differences. The period

for concluding consultations may be extended, on a case by case basis, by mutual written consent

between the Parties. The Parties shall seek to resolve those differences within the Sub-Committee

on Customs, Trade Facilitation and Rules of Origin established by Article 1.10.1(d) (Sub-

Committees and Other Bodies of Part III of this Agreement).

10. This Chapter does not prevent a customs authority of a Party from taking any other action that

it considers necessary, pending a resolution of the differences referred in paragraph 8 under this

Agreement.

& /en 150

ARTICLE 3.25

Confidentiality

1. Each Party shall maintain, in accordance with its law, the confidentiality of information

provided by the other Party pursuant to this Chapter and shall protect that information from

disclosure.

2. The customs authorities or the competent governmental authority of the importing Party may

only use the information obtained from the other Party for the purposes of this Chapter.

3. The customs authorities or the competent governmental authority of the exporting Party shall

not disclose confidential business information obtained from the exporter, unless otherwise

provided for in this Chapter.

4. The importing Party shall not use the information obtained by its customs authority pursuant

to this Chapter in any criminal proceedings carried out by a court or a judge, unless the exporting

Party is formally informed in writing by the importing Party about the information it intends to use

and the justification for the usage, and provided that no objection is raised by the exporting Party.

& /en 151

5. Nothing in this Agreement shall be construed as precluding a Party from using confidential

information for the purposes of administration or enforcement of customs law related to this

Chapter, or as otherwise required by law of the Party, including in administrative, quasi-judicial or

judicial proceedings.

ARTICLE 3.26

Administrative Measures and Sanctions

A Party shall impose administrative measures and sanctions on any person who made out a

document, or causes a document to be made out, which contains incorrect information for the

purposes of obtaining a preferential tariff treatment for goods.

SECTION C

Other Provisions

ARTICLE 3.27

Application of the Chapter to Ceuta and Melilla

1. For the purposes of this Chapter, in the case of the European Union, the term "Party" does not

include Ceuta and Melilla.

& /en 152

2. Originating goods of Mexico, when imported into Ceuta and Melilla, shall in all respects be

subject to the same customs treatment under this Agreement as that which is applied to goods

originating in the customs territory of the European Union under Protocol 2 of the Act of Accession

of the Kingdom of Spain and the Portuguese Republic to the European Union. Mexico shall grant to

imports of goods covered by the Agreement and originating in Ceuta and Melilla the same customs

treatment as that which is granted to goods imported from and originating in the European Union.

3. The rules of origin and origin procedures referred to in this Chapter shall apply mutatis

mutandis to goods exported from Mexico to Ceuta and Melilla and to goods exported from Ceuta

and Melilla to Mexico.

4. Ceuta and Melilla shall be considered as a single territory.

5. The exporter shall enter "Mexico" or "Ceuta and Melilla" in field 3 of the text of the statement

on origin, depending on the origin of the good.

6. The Spanish customs authorities shall be responsible for the application and implementation

of this Chapter in Ceuta and Melilla.

& /en 153

ARTICLE 3.28

The Principality of Andorra and the Republic of San Marino

The preferential tariff treatment of originating goods of Andorra and of San Marino and the

determination of the origin of those goods are set out in Annex 3-C (The Principality of Andorra

and the Republic of San Marino).

ARTICLE 3.29

Explanatory Notes

Explanatory notes regarding the interpretation, application and administration of this Chapter are set

out in Annex 3-D (Explanatory Notes).

ARTICLE 3.30

Transitional Provisions

1. For goods for which a claim for preferential tariff treatment and importation was made before

the entry into force of this Agreement, the rules and conditions set out in Annex III to Decision

No. 2/2000 of the EC-Mexico Joint Council of 23 March 2000 and its Appendices I to V shall be

applicable for a maximum period of three years after the entry into force of this Agreement.

& /en 154

2. A proof of origin issued in accordance with the provisions of Annex III to Decision

No. 2/2000 of the EC-Mexico Joint Council of 23 March 2000 and its Appendices I to V, for goods

for which a claim for preferential tariff treatment has not been made by the date of entry into force

of this Agreement, shall not be valid.

3. For goods which, at the entry into force of this Agreement, are either in transit from the

exporting Party to the importing Party or under customs control in the importing Party without

payment of import duties and taxes, a claim for preferential tariff treatment shall be made in

accordance with Article 3.16, provided those goods fulfil the requirements of this Chapter.

ARTICLE 3.31

Amendments to the Chapter

The Joint Council may modify by decision the provisions of the Chapter and Annexes 3-A to 3-D.

ARTICLE 3.32

The Sub-Committee on Customs, Trade Facilitation and Rules of Origin

For the purposes of the effective implementation and operation of this Chapter, the functions of the

Sub-Committee on Customs, Trade Facilitation and Rules of Origin are those listed in Article 4.17

(Sub-Committee on Customs, Trade Facilitation and Rules of Origin).

& /en 155

CHAPTER 4

CUSTOMS AND TRADE FACILITATION

ARTICLE 4.1

General Objectives

1. The Parties recognise the importance of customs and trade facilitation in the evolving global

trading environment.

2. The Parties recognise that, for their import, export and transit requirements and procedures,

they should take into consideration customs and international trade instruments and standards

applicable in the area of customs and trade, such as the substantive elements of the Revised Kyoto

Convention on the Simplification and Harmonization of Customs Procedures done at Kyoto

on 18 May 1973 and adopted by the World Customs Organization Council in June 1999, the

International Convention on the Harmonized Commodity Description and Coding System done at

Brussels on 14 June 1983, as well as the Framework of Standards to Secure and Facilitate Global

Trade of the World Customs Organization adopted in June 2005 (hereinafter referred to as "SAFE

Framework of Standards") and the Customs Data Model of the World Customs Organization.

& /en 156

3. The Parties recognise that their laws and regulations shall be non-discriminatory, and that

customs procedures shall be based upon the use of modern methods and effective controls to

achieve the protection and facilitation of legitimate trade.

4. The Parties also recognise that their customs procedures shall be no more administratively

burdensome or trade restrictive than necessary to achieve legitimate objectives and that they should

be applied in a manner that is predictable, consistent and transparent.

5. In order to ensure transparency, efficiency, integrity and accountability of operations, each

Party shall:

(a) simplify and review requirements and formalities wherever possible with a view to the rapid

release and clearance of goods;

(b) work towards the further simplification and standardisation of data and documentation

required by customs and other agencies, in order to reduce the time and costs thereof for

traders or operators, including small and medium-sized enterprises; and

(c) ensure that the highest standards of integrity be maintained, through the application of

measures reflecting the principles of the relevant international conventions and instruments in

the field of customs and trade facilitation.

& /en 157

6. The Parties agree to reinforce their cooperation with a view to ensuring that the relevant

legislation and procedures, as well as the administrative capacity of the relevant administrations,

fulfil the objectives of promoting trade facilitation while ensuring effective customs control.

ARTICLE 4.2

Transparency and Publication

1. Each Party shall provide, as appropriate, for regular consultations between border agencies

and traders or other stakeholders within its territory.

2. Each Party shall promptly publish, in a non-discriminatory and easily accessible manner,

including online and to the extent possible in the English language, its laws, regulations and general

administrative procedures and guidelines, related to customs and trade facilitation matters. Those

matters include:

(a) import, export and transit procedures, including port, airport and other entry-point procedures,

and required forms and documents;

(b) applied rates of duties and taxes of any kind imposed on or in connection with importation or

exportation;

(c) fees and charges imposed by or for governmental agencies on or in connection with

importation, exportation or transit;

& /en 158

(d) rules for the classification or valuation of goods for customs purposes;

(e) laws, regulations and administrative rulings of general application relating to rules of origin;

(f) import, export or transit restrictions or prohibitions;

(g) penalty provisions against breaches of import, export or transit formalities;

(h) appeal procedures;

(i) agreements or parts thereof with any country or countries relating to importation, exportation

or transit;

(j) procedures relating to the administration of tariff quotas;

(k) hours of operation and operating procedures for customs offices at ports and border crossing

points; and

(l) enquiry points for information enquiries.

3. Each Party shall provide, in accordance with its laws and regulations, opportunities and an

appropriate time period to traders and other interested parties to comment on the proposed

introduction or amendment of laws and regulations of general application related to customs and

trade facilitation matters.

& /en 159

4. Each Party shall ensure, in accordance with its laws and regulations, that new or amended

laws and regulations of general application related to customs and trade facilitation or any

information thereon are made publicly available, as early as possible before their entry into force, in

order to enable traders and other interested persons to become acquainted with them.

5. Each Party may provide that paragraphs 3 and 4 do not apply to changes to duty rates or tariff

rates, measures that have a relieving effect, measures the effectiveness of which would be

undermined as a result of compliance with paragraphs 3 and 4, measures applied in urgent

circumstances or minor changes to its domestic law and legal system.

6. Each Party shall establish or maintain one or more enquiry points to address enquiries of

traders and other interested persons concerning customs and other trade facilitation matters and

shall make information concerning the procedures for making such enquiries publicly available

online.

7. A Party shall not require the payment of a fee for answering enquiries or providing required

forms and documents.

8. The enquiry points shall provide an answer to enquiries and provide the forms and documents

within a reasonable time period set by each Party, which may vary depending on the nature or

complexity of the enquiry.

& /en 160

ARTICLE 4.3

Data and Documentation Requirements

1. With a view to simplifying and minimising the incidence and complexity of import, export

and transit formalities, data and documentation requirements, each Party shall ensure, as

appropriate, that those formalities, data and documentation requirements:

(a) are adopted and applied with a view to a rapid release of goods, provided the conditions for

the release are fulfilled;

(b) are adopted and applied in a manner that aims at reducing the time and cost of compliance for

traders and operators;

(c) are the least trade-restrictive alternative, if two or more alternatives were reasonably available

for fulfilling the policy objective or objectives in question; and

(d) are not maintained, including parts thereof, if no longer required.

2. Each Party shall apply common customs procedures and uniform customs data and

documentation requirements for the release of goods throughout its territory. Nothing in this

paragraph precludes a Party from differentiating its customs procedures and data and documentation

requirements based on elements such as risk management, the nature and type of goods, or means of

transport.

& /en 161

ARTICLE 4.4

Automation and Use of Information Technology

1. Each Party shall:

(a) use information technologies that expedite procedures for the release of goods in order to

facilitate trade between the Parties;

(b) make electronic systems accessible to customs users;

(c) allow a customs declaration to be submitted in electronic format; and

(d) use electronic or automated risk-management systems.

2. Each Party shall adopt or maintain procedures allowing the electronic payment of duties,

taxes, fees and charges collected by customs authorities incurred upon importation and exportation.

& /en 162

ARTICLE 4.5

Release of Goods

1. Each Party shall adopt or maintain procedures that:

(a) provide for the prompt release of goods within a period no longer than required to ensure

compliance with its customs law and other trade-related laws and regulations;

(b) provide for advance electronic submission and processing of customs data and documentation

and any other information prior to the arrival of the goods in order to enable the release of

goods from customs control upon arrival;

(c) allow goods to be released at the point of arrival without temporary transfer to warehouses or

other facilities; and

(d) allow for the release of goods prior to the final determination of customs duties, taxes, fees

and charges, if that determination is not done prior to or promptly upon arrival, provided that

all other regulatory requirements have been met; before releasing the goods, a Party may

require that an importer provides sufficient guarantee in the form of a surety, a deposit, or

other appropriate instrument, which shall not be higher than the amount required to secure

payment of customs duties, taxes, fees and charges due for the goods covered by the

guarantee and that shall be discharged when that guarantee is no longer required.

& /en 163

2. Each Party may adopt or maintain measures allowing traders or operators to benefit from

further simplification of customs procedures, in accordance with its laws and regulations.

ARTICLE 4.6

Risk Management

1. Each Party shall adopt or maintain a risk-management system for customs control that enables

its customs authorities to focus their inspection activities on high-risk consignments and expedite

the release of low-risk consignments.

2. Each Party shall design and apply risk management in a manner as to avoid arbitrary or

unjustifiable discrimination, or disguised restrictions to international trade.

3. Each Party shall base risk management on the assessment of risk through appropriate

selectivity criteria.

4. Each Party may also select, on a random basis, consignments for customs controls as part of

its risk management.

5. In order to facilitate trade, each Party shall periodically review and update, as appropriate, the

risk-management system referred to in paragraph 1.

& /en 164

ARTICLE 4.7

Advance Rulings

1. An advance ruling is a written decision provided by a Party through its customs authorities to

an applicant prior to the importation into its territory of a good covered by the application that sets

out the treatment that the Party shall provide to the good at the time of importation with regard to:

(a) the tariff classification of the good;

(b) the origin of the good18; and

(c) any other matters as the Parties may agree.

2. A Party shall issue the advance ruling in a reasonable, time-bound manner to the applicant

that has submitted an application, including in electronic format, provided it contains all necessary

information in accordance with the laws and regulations of that Party. A Party may request a sample

of the good for which the applicant is seeking an advance ruling.

3. The advance ruling shall be valid for at least three years after its issuance unless the law, facts

or circumstances supporting that ruling have changed.

18 According to the Agreement on Rules of Origin of the WTO or Chapter 3 (Rules of Origin

and Origin Procedures) of this Agreement.

& /en 165

4. A Party may decline to issue an advance ruling if the facts and circumstances forming the

basis of the advance ruling are the subject of an administrative or judicial review, or if the

application is not based on real and concrete facts, or does not relate to any intended use of the

advance ruling. A Party that declines to issue an advance ruling shall promptly notify the applicant

in writing, setting out the relevant facts and the basis for its decision.

5. Each Party shall publish, at least:

(a) the requirements for the application for an advance ruling, including the information to be

provided and the format;

(b) the time limit by which it will issue an advance ruling; and

(c) the period of time for which the advance ruling will be valid.

6. If a Party revokes, modifies or annuls an advance ruling, it shall notify the applicant in writing

setting out the relevant facts and the basis for its decision. A Party may only revoke, modify or

annul an advance ruling with retroactive effect if the ruling was based on incomplete, incorrect,

inaccurate, false or misleading information provided by the applicant.

7. An advance ruling issued by a Party shall be binding on that Party in respect of the applicant

and also on the applicant.

& /en 166

8. A Party shall provide, upon written request of an applicant, a review of the advance ruling or

of the decision to revoke, modify or annul it.

9. Subject to any confidentiality requirements in its laws and regulations, a Party shall

endeavour to make the substantive elements of its advance rulings publicly available, including

online.

ARTICLE 4.8

Authorised Economic Operators

1. Each Party shall establish or maintain for operators who meet specified criteria (authorised

economic operators, hereinafter referred to as "AEO") a trade facilitation partnership programme

(hereinafter referred to as "AEO programme") in accordance with the SAFE Framework of

Standards.

2. The specified criteria19 to qualify as AEO shall be published and relate to compliance, or the

risk of non-compliance, with the requirements specified in each Party's laws, regulations or

procedures.

19 A Party may use the criteria provided for in Article 7.7.2 of the WTO Agreement on Trade

Facilitation.

& /en 167

3. The specified criteria to qualify as an AEO shall not be designed or applied so as to afford or

create arbitrary or unjustifiable discrimination between operators where the same conditions prevail

and shall allow the participation of small and medium-sized enterprises.

4. The AEO programme shall include specific benefits for AEO, taking into account the

commitments of the Parties in accordance with Article 7.7.3 of the WTO Agreement on Trade

Facilitation, adopted on 27 November 2014.

5. The Parties shall cooperate in establishing, if relevant and appropriate, the mutual recognition

of their AEO programmes, provided that the programmes are compatible and based on equivalent

criteria and benefits.

ARTICLE 4.9

Review or Appeal

1. Each Party shall provide effective, prompt, non-discriminatory and easily accessible

procedures to guarantee the right of appeal against a decision on a customs matter.

& /en 168

2. Each Party shall ensure that a person to whom it issues a decision on a customs matter has

access within its territory to:

(a) an administrative review by or appeal to an administrative authority higher than or

independent from the official or office that issued the decision; or

(b) a judicial review or appeal of the decision.

3. Each Party shall provide that a person who has applied to the customs authorities for a

decision and has not obtained a decision on that application within the relevant time limits has the

right of appeal.

4. Each Party shall provide that the person referred to in paragraph 2 receives an administrative

decision with the reasons for that decision, so as to enable that person to have recourse to review or

appeal procedures if necessary.

ARTICLE 4.10

Penalties

1. Each Party shall provide for penalties for failure to comply with its laws, regulations or

procedural requirements related to customs or other legislation for the importation, exportation and

transit of goods.

& /en 169

2. Each Party shall ensure that its customs laws and regulations provide that any penalties

imposed for breaches of its customs laws, regulations or procedural requirements be proportionate

and non-discriminatory.

3. Each Party shall ensure that a penalty imposed by its customs authorities for a breach of its

customs laws, regulations or procedural requirements is imposed only on the person legally

responsible for the breach.

4. Each Party shall ensure that the penalty imposed depends on the facts and circumstances of

the case and is commensurate with the degree and severity of the breach.

5. Each Party shall avoid incentives or conflicts of interest in the assessment and collection of

penalties and duties.

6. Each Party is encouraged to consider voluntary disclosure prior to the discovery by the

customs authorities of a breach of its customs laws, regulations or procedural requirements, as a

potential mitigating factor when establishing a penalty.

7. Each Party shall ensure that if a penalty is imposed for a breach of its customs laws,

regulations or procedural requirements, an explanation in writing is provided to the person upon

whom the penalty is imposed specifying the nature of the breach and the applicable law, regulation

or procedure pursuant to which the amount or range of the penalty for the breach has been imposed.

& /en 170

8. Each Party shall provide in its laws, regulations or procedures a fixed period within which its

customs authorities may initiate proceedings to impose a penalty relating to a breach of its customs

laws, regulations or procedures.

ARTICLE 4.11

Customs Cooperation and Mutual Administrative Assistance

1. The Parties shall ensure that their respective authorities cooperate on customs matters in order

to ensure that the objectives set out in Article 4.1 are attained.

2. The Parties shall cooperate, among others, through:

(a) exchanging information concerning their customs laws and regulations and their

implementation, and customs procedures, particularly in the following areas:

(i) simplification and modernisation of customs procedures;

(ii) border enforcement measures applied by their customs authorities;

(iii) facilitation of transit movements and transhipment;

(iv) dialogue with the business community; and

(v) supply chain security and risk management;

& /en 171

(b) working together on the customs-related aspects of securing and facilitating the international

trade supply chain in accordance with the SAFE Framework of Standards, including with

respect to their AEO programmes and their mutual recognition referred to in Article 4.8;

(c) considering developing joint initiatives relating to import, export, other customs procedures

and trade facilitation including technical assistance;

(d) strengthening their cooperation in the field of customs in international organisations such as

the WTO and the World Customs Organization (hereinafter referred to as "WCO");

(e) establishing minimum standards, to the extent practicable, for risk-management techniques

and related requirements and programmes; if relevant and appropriate, the Parties shall also

consider mutual recognition of risk-management techniques, risk standards and security

controls;

(f) endeavouring to harmonise their data requirements for import, export and other customs

procedures by implementing common standards and data elements in accordance with the

WCO Data Model; and

(g) maintaining a dialogue between their respective policy experts to promote the utility,

efficiency and applicability of advance rulings.

& /en 172

3. The Parties shall provide each other with mutual administrative assistance in customs matters

in accordance with the provisions of the Annex on Mutual Administrative Assistance in Customs

Matters adopted by the Decision No 5/2004 of the EU-Mexico Joint Council of 15 December 2004,

which is hereby incorporated and made part of this Agreement. Any exchange of information

between the Parties in accordance with this Chapter shall be subject to the confidentiality of

information and personal data protection requirements provided for in Article 10 of that Annex,

mutatis mutandis, and to any confidentiality and privacy requirements provided for in the respective

laws and regulations of the Parties.

ARTICLE 4.12

Single Window

1. Each Party shall endeavour to develop or maintain single window systems to facilitate a

single electronic submission of all information required by customs and other legislation for the

import, export and transit of goods.

2. The Parties shall endeavour to work together towards the interoperability and streamlining of

their single window systems, including by sharing their respective experiences in developing and

deploying their single window systems.

& /en 173

ARTICLE 4.13

Transit and Transhipment

1. Each Party shall ensure the facilitation and effective control of transit movements and

transhipment operations through its territory.

2. Each Party shall endeavour to promote and implement regional transit arrangements with a

view to facilitating trade between the Parties.

3. Each Party shall ensure that all concerned authorities and agencies in its territory cooperate

and coordinate to facilitate traffic in transit.

4. Each Party shall allow goods intended for import to be moved under customs control from a

customs office of entry to another customs office in its territory from where the goods would be

released or cleared.

ARTICLE 4.14

Post-Clearance Audit

1. With a view to expediting the release of goods, each Party shall adopt or maintain

post-clearance audit to ensure compliance with its customs laws and regulations.

& /en 174

2. Each Party shall conduct post-clearance audits in a risk-based manner.

3. Each Party shall conduct post-clearance audits in a transparent manner. If an audit is

conducted and conclusive results have been achieved, the Party shall notify, without delay, the

person whose record is audited of the results, the reasons for the results and the rights and

obligations of the audited person.

4. The Parties acknowledge that the information obtained in a post-clearance audit may be used

in further administrative or judicial proceedings.

5. The Parties shall, to the extent practicable, use the result of a post-clearance audit in applying

risk management.

ARTICLE 4.15

Customs Brokers

1. A Party shall not require in its customs laws and regulations the mandatory use of customs

brokers.

2. Each Party shall publish its measures on the use of customs brokers.

3. Each Party shall apply transparent and objective rules if and when licensing customs brokers.

& /en 175

ARTICLE 4.16

Preshipment Inspections

A Party shall not require the mandatory use of pre-shipment inspections as defined in the WTO

Agreement on Preshipment Inspection, in relation to tariff classification and customs valuation20.

ARTICLE 4.17

Sub-Committee on Customs, Trade Facilitation and Rules of Origin

1. The Sub-Committee on Customs, Trade Facilitation and Rules of Origin shall report to the

Joint Committee.

2. The Sub-Committee on Customs, Trade Facilitation and Rules of Origin established pursuant

to Article 1.10 (Sub-Committees and Other Bodies of Part III of this Agreement) shall ensure the

proper functioning of this Chapter, Chapter 3 (Rules of Origin and Origin Procedures), the Annex

on Mutual Administrative Assistance in customs matters referred to in Article 4.11.3 and any

additional customs-related provisions agreed between the Parties, and examine all matters arising

from their application.

20 For greater certainty, this Article does not preclude preshipment inspections for sanitary and

phytosanitary purposes.

& /en 176

3. The Sub-Committee shall:

(a) prepare appropriate recommendations, as necessary, to the Joint Committee on:

(i) the implementation and administration of Chapter 3 (Rules of Origin and Origin

Procedures); and

(ii) any amendments to Chapter 3 (Rules of Origin and Origin Procedures);

(b) adopt explanatory notes to facilitate the implementation of Chapter 3 (Rules of Origin and

Origin Procedures);

(c) monitor the implementation and administration of this Chapter;

(d) provide a forum to consult and discuss all matters concerning customs, including in particular

customs procedures, customs valuation, tariff regimes, customs nomenclature, customs

cooperation and mutual administrative assistance in customs matters;

(e) provide a forum to consult and discuss matters relating to rules of origin, origin procedures

and administrative cooperation;

& /en 177

(f) enhance cooperation on the development, application and enforcement of customs procedures,

mutual administrative assistance in customs matters, rules of origin, origin procedures and

administrative cooperation; and

(g) consider any other matter related to this Chapter or Chapter 3 (Rules of Origin and Origin

Procedures) as the Parties may agree.

4. The Sub-Committee on Customs, Trade Facilitation and Rules of Origin may examine the

need for, and prepare for the Joint Council, decisions or recommendations on all matters arising

from the implementation of this Chapter. The Joint Council shall have the power to adopt decisions

on the implementation of this Chapter as appropriate, including in what concerns AEO programmes

and their mutual recognition, joint initiatives relating to customs procedures and trade facilitation,

and technical assistance.

5. The Parties may agree to hold ad hoc meetings for matters concerning customs cooperation,

rules of origin or mutual administrative assistance.

& /en 178

CHAPTER 5

TRADE REMEDIES

SECTION A

Anti-Dumping and Countervailing Measures

ARTICLE 5.1

General Provisions

1. The Parties affirm their rights and obligations under Article VI of GATT 1994, the Anti-

Dumping Agreement and the SCM Agreement.

2. For the purposes of the application of provisional and definitive measures, the origin of the

goods concerned shall be determined in accordance with the non-preferential rules of origin of each

Party.

& /en 179

ARTICLE 5.2

Transparency and Due Process

1. Each Party shall conduct its procedures and apply anti-dumping and countervailing measures

in a fair and transparent manner, in accordance with the relevant provisions of the Anti-Dumping

Agreement and the SCM Agreement.

2. Each Party shall inform all interested parties, at a preliminary stage of the proceedings, and in

any event before a final determination is made, of the essential facts under consideration, which

form the basis for the decision whether to apply final measures. This is without prejudice to

Article 6.5 of the Anti-Dumping Agreement and Article 12.4 of the SCM Agreement.

3. Each Party shall grant each interested party in an anti-dumping or countervailing duty

investigation, full opportunity to defend its interests, provided it does not unduly delay the conduct

of the investigation.

4. The definition of interested parties provided for in Article 6.11 of the Anti-Dumping

Agreement and Article 12.9 of the SCM Agreement applies.

& /en 180

ARTICLE 5.3

Imposition of Anti-Dumping and Countervailing Duties

The decision whether the amount of the anti-dumping or countervailing duty to be imposed shall be

the full margin of dumping or amount of subsidy, or a lesser amount, is to be made by the

authorities of the importing Party in accordance with the law of that Party.

ARTICLE 5.4

Final Determination

A Party shall, when making a final determination, take into account the information duly provided

by all interested parties considered as such in accordance with its law.

ARTICLE 5.5

Non-Application of Dispute Settlement

A Party shall not have recourse to dispute settlement under Chapter 31 (Dispute Settlement)

concerning the interpretation or application of the provisions of this Section.

& /en 181

SECTION B

Global Safeguard Measures

ARTICLE 5.6

General Provisions

Each Party retains its rights and obligations pursuant to Articles XIX of GATT 1994 and 5 of the

Agreement on Agriculture as well as under the Safeguards Agreement.

ARTICLE 5.7

Transparency

1. Notwithstanding Article 5.6, the Party initiating a global safeguard investigation or intending

to impose global safeguard measures shall immediately provide, at the request of the other Party

and provided the latter has a substantial interest, ad hoc written notification of all relevant

information leading to the initiation of the global safeguard investigation or the imposition of global

safeguard measures, including on the provisional findings, where relevant. This is without prejudice

to Article 3.2 of the Agreement on Safeguards.

& /en 182

2. A Party imposing global safeguard measures shall endeavour to impose them in a way that

least affects bilateral trade.

3. For the purposes of paragraph 2, if a Party considers that the legal requirements for the

imposition of definitive safeguard measures are met, and intends to impose such measures, it shall

notify the other Party and give the possibility to hold bilateral consultations. If no satisfactory

solution has been reached within 30 days after the notification, the importing Party may adopt the

definitive safeguard measure appropriate to remedy the problem.

4. For the purposes of this Article, a Party is deemed to have a substantial interest if it is among

the five largest suppliers of the imported good during the most recent three-year period, measured in

terms of either absolute volume or value.

ARTICLE 5.8

Non-Application of Dispute Settlement

A Party shall not have recourse to dispute settlement under Chapter 31 (Dispute Settlement)

concerning the interpretation or application of the provisions of this Section referring to rights and

obligations under the WTO Agreement.

& /en 183

SECTION C

Bilateral Safeguard Measures

SUB-SECTION C.1

General Provisions

ARTICLE 5.9

Definitions

For the purposes of Section C:

(a) "competent investigating authority" means:

(i) in the case of the European Union, the European Commission; and

(ii) in the case of Mexico, the "Unidad de Prácticas Comerciales Internacionales de la

Secretaría de Economía" (International Trade Practices Unit of the Ministry of the

Economy), or its successor;

& /en 184

(b) "domestic industry" means, with respect to an imported product, the producers as a whole of

the like or directly competitive products operating within the territory of a Party, or those

producers whose collective output of the like or directly competitive products constitutes a

major proportion of the total domestic production of those products;

(c) "like product" means a product which is identical, that is alike in all respects, to the product

under consideration, or in the absence of such product, another product which, although not

alike in all respects, has characteristics closely resembling those of the product under

consideration;

(d) "directly competitive product" means a product which may not be alike in all respects, but has

a high degree of substitutability with the product under consideration as it fulfils the same

functions21;

(e) "serious injury" means a significant overall impairment of the position of a domestic industry;

(f) "threat of serious injury" means serious injury that, based on facts and not merely on

allegation, conjecture or remote possibility, is clearly imminent; and

21 In that regard, the authorities may analyse aspects such as the physical characteristics of those

products, their technical specifications, final uses and channels of distribution. That list of

aspects is not exhaustive, nor can one or several of these factors necessarily give decisive

guidance.

& /en 185

(g) "transition period" means:

(i) a period of 10 years from the date of entry into force of this Agreement; or

(ii) the tariff elimination period for the goods set out in the tariff elimination schedule of a

Party in Annex 2-A (Tariff Elimination Schedule), provided the tariff elimination period

for the good concerned is 10 or more years, plus three years.

ARTICLE 5.10

Application of a Bilateral Safeguard Measure

1. Notwithstanding Section B, if as a result of the reduction or elimination of a customs duty

under this Agreement, an originating good of a Party is being imported into the territory of the other

Party in such increased quantities, in absolute terms or relative to domestic production, and under

such conditions as to cause or threaten to cause serious injury to the domestic industry that produces

like or directly competitive products, the importing Party may impose the measures provided for in

paragraph 2 under the conditions and in accordance with the procedures established in this Section.

& /en 186

2. If the conditions in paragraph 1 are met, the importing Party may only impose bilateral

safeguard measures which:

(a) suspend the further reduction of the rate of customs duty on the product concerned as

provided for under this Agreement; or

(b) increase the rate of customs duty on the product concerned to a level which does not exceed

the lesser of:

(i) the most-favoured-nation applied rate of customs duty on the product in effect at the

time the measure is imposed; or

(ii) the most-favoured-nation applied rate of customs duty on the product in effect on the

day immediately preceding the date of entry into force of this Agreement.

3. The Parties share the understanding that neither tariff rate quotas nor quantitative restrictions

would be a permissible form of bilateral safeguard measure.

& /en 187

ARTICLE 5.11

Conditions and Limitations

1. A Party shall not apply a bilateral safeguard measure:

(a) except to the extent, and for such time, as may be necessary to prevent or remedy the

situations described in Articles 5.10 or 5.15;

(b) for a period exceeding two years; or

(c) beyond the expiration of the transition period.

The period referred to in subparagraph (b) may be extended by another year if the competent

authorities of the importing Party determine, in conformity with the procedures specified in

Section C, that the measure continues to be necessary to prevent or remedy the situations described

in Articles 5.10 or 5.15 and to facilitate adjustment, provided that the total period of application of a

safeguard measure, including the period of initial application and any extension thereof, does not

exceed three years.

2. A Party shall only apply a bilateral safeguard measure to originating goods set out in

Annex 2-A (Tariff Elimination Schedule), that are subject to preferential treatment under this

Agreement.

& /en 188

3. In order to facilitate any adjustment in a situation where the expected duration of a bilateral

safeguard measure exceeds one year, the Party that applies the measure shall, during the period of

application, progressively liberalise the measure at regular intervals.

4. When a Party ceases to apply a bilateral safeguard measure, the rate of customs duty shall be

the rate that would have been in effect for the product in accordance with Article 2.4 (Elimination

or Reduction of Customs Duties).

ARTICLE 5.12

Provisional Measures

1. In critical circumstances where delay would cause damage that would be difficult to repair, a

Party may apply a bilateral safeguard measure on a provisional basis, without complying with the

requirements of Article 5.22.1, pursuant to a preliminary determination that there is clear evidence

that imports of an originating good of the other Party have increased as a result of the reduction or

elimination of a customs duty under this Agreement, and that such imports cause or threaten to

cause the situations described in Articles 5.10 or 5.15.

& /en 189

2. The duration of any provisional measure shall not exceed 200 days, during which time the

Party shall comply with the relevant procedural rules established in Sub-Section C.2. The Party

shall promptly refund any tariff increases if the subsequent investigation described in

Sub-Section C.2 does not result in the imposition of a definitive measure in compliance with the

requirements of Articles 5.10 or 5.15. The duration of any provisional measure shall be counted as

part of the period referred to in Article 5.11.1(b). The importing Party shall inform the other Party

upon imposing such provisional measures and it shall immediately refer the matter to the Joint

Committee for examination if the other Party so requests.

ARTICLE 5.13

Compensation and Suspension of Concessions

1. A Party applying a bilateral safeguard measure shall consult with the other Party in order to

mutually agree on appropriate trade-liberalising compensation in the form of concessions having

substantially equivalent trade effects. The Party applying a bilateral safeguard measure shall

provide an opportunity for such consultations no later than 30 days after the application of the

bilateral safeguard measure.

& /en 190

2. If the consultations referred to in paragraph 1 do not result in an agreement on trade-

liberalising compensation within 30 days after the start of the consultations, the Party affected by

the bilateral safeguard measure may suspend the application of concessions which have trade

effects substantially equivalent to the bilateral safeguard measure of the other Party no later

than 90 days after the measure is applied.

3. The Party affected by the bilateral safeguard measure shall notify the other Party in writing at

least 30 days prior to the suspension of concessions in accordance with paragraph 2.

4. The obligation to provide compensation pursuant to paragraph 1 and the right to suspend

concessions pursuant to paragraph 2 expire on the date of termination of the bilateral safeguard

measure.

ARTICLE 5.14

Use of Safeguard Measures and Time Lapse in Between Measures

1. A Party shall not apply a safeguard measure referred to in this Section to the import of a

product that has previously been subject to such a measure, unless a period of time has elapsed that

is equal to half of that during which the safeguard measure was applied for the immediately

preceding period.

& /en 191

2. A Party shall not apply, with respect to the same product and during the same period:

(a) a bilateral safeguard measure or a provisional safeguard measure under this Agreement; and

(b) a safeguard measure pursuant to Article XIX of GATT 1994 and under the Safeguards

Agreement.

ARTICLE 5.15

Outermost Regions

1. If any originating good of Mexico is being imported directly into the territory of one or

several outermost regions of the European Union in such increased quantities and under such

conditions as to cause or threaten to cause serious deterioration in the economic situation of the

outermost region concerned, the European Union, after having examined alternative solutions, may

exceptionally impose safeguard measures limited to the territory of the outermost region concerned.

2. Without prejudice to paragraph 1, all the provisions of Section C applicable to bilateral

safeguard measures are also applicable to any safeguard measure adopted in relation to the

outermost regions of the European Union.

3. A bilateral safeguard measure limited to the outermost regions of the European Union shall

apply only to goods subject to preferential treatment under this Agreement.

& /en 192

4. For the purposes of paragraph 1, "serious deterioration" means major difficulties in a sector of

the economy producing like or directly competitive products. The determination of serious

deterioration shall be based on objective factors, including the following elements:

(a) the increase in the volume of imports in absolute terms or relative to domestic production and

to imports from other sources; and

(b) the effect of such imports on the situation of the relevant industry or the economic sector

concerned, including the levels of sales, production, financial situation and employment.

SUB-SECTION C.2

Procedural Rules Applicable to Bilateral Safeguard Measures

ARTICLE 5.16

Applicable Law

For the application of bilateral safeguard measures, the competent investigating authority shall

comply with the provisions of this Sub-Section and, in cases not covered by this Sub-Section, apply

the rules established under the law of the Party concerned, as long as those rules are in conformity

with the provisions of Section C.

& /en 193

ARTICLE 5.17

Initiation of a Safeguard Procedure

1. A competent investigating authority may initiate a safeguard procedure upon a written

application made by or on behalf of the domestic industry, or in exceptional circumstances, on its

own initiative. In the case of the European Union that application can be filed by one or more

Member States of the European Union on behalf of the domestic industry. The application shall be

deemed to have been made by or on behalf of the domestic industry if it is supported by those

domestic producers whose collective output constitutes more than 50 % of the total production of

the like or directly competitive products produced by that portion of the domestic industry

expressing either support for or opposition to the application. However, no investigation shall be

initiated when domestic producers expressly supporting the application account for less than 25 %

of total national production of the like or directly competitive products produced by the domestic

industry.

2. Once the investigation has been initiated, the application referred to in paragraph 1 shall

promptly be made available to whom it may concern, except for the confidential information

contained therein.

& /en 194

3. Upon initiation of a safeguard procedure, the competent investigating authority shall publish a

notice of initiation of the procedure in the official journal of the Party. The notice shall identify the

entity which filed the written application, if applicable, the imported good concerned, its heading,

subheading or the tariff item number under which it is classified under the Harmonized System, the

nature and timing of the determination to be made, the period within which interested parties may

make their views known in writing and submit information, the place at which the written

application and any other non-confidential documents filed in the course of the procedure may be

inspected and the name, address and telephone number of the office to be contacted for more

information. In case the competent investigating authority decides to hold a public hearing, the time

and place of that public hearing may be either included in the notice of initiation or notified at any

subsequent stage of the procedure, provided that such notice is given well in advance. In case no

public hearing is scheduled at the beginning of the investigation, the notice of initiation shall

include the period within which interested parties may apply to be heard orally by the competent

investigating authority.

4. With respect to a safeguard procedure initiated on the basis of a written application filed by an

entity asserting that it is representative of the domestic industry, the competent investigating

authority shall not publish the notice of initiation pursuant to paragraph 3 without first assessing

carefully that the application meets the requirements of its law and the requirements of paragraph 1,

and includes reasonable evidence that imports of an originating good of the other Party have

increased as the result of the reduction or elimination of a customs duty under this Agreement, and

that such imports cause or threaten to cause the alleged serious injury or the alleged serious

deterioration in the economic situation.

& /en 195

ARTICLE 5.18

Investigation

1. A Party may apply a safeguard measure only following an investigation by the competent

investigating authority of that Party pursuant to the procedures established in this Sub-Section. This

investigation shall include reasonable public notice to all interested parties, and public hearings or

other appropriate means in which importers, exporters and other interested parties can present

evidence and their views, including the opportunity to respond to the presentations of other parties.

2. Each Party shall ensure that its competent investigating authority completes any such

investigation within one year following its date of initiation.

ARTICLE 5.19

Determination of Serious Injury or Threat Thereof and Causal Link

1. In the investigation to determine whether increased imports cause or threaten to cause serious

injury to a domestic industry, the competent investigating authority shall evaluate all relevant

factors of an objective and quantifiable nature having a bearing on the situation of the domestic

industry, in particular the rate and amount of the increase in imports of the product concerned in

absolute terms and relative to domestic production, the share of the domestic market taken by the

increased imports, and changes in the level of sales, production, productivity, capacity utilisation,

profits and losses, and employment.

& /en 196

2. The determination that increased imports cause or threaten to cause the situations described in

Articles 5.10 or 5.15, shall not be made unless the investigation demonstrates, based on objective

evidence, the existence of a clear causal link between the increased imports of the product

concerned and the situations described in Articles 5.10 or 5.15. If factors other than the increased

imports are, at the same time, causing the situations described in Articles 5.10 or 5.15, such injury

or threat thereof, or serious deterioration in the economic situation or threat thereof, shall not be

attributed to the increased imports.

ARTICLE 5.20

Hearings

In the course of each safeguard procedure, the competent investigating authority shall:

(a) hold a public hearing, after providing reasonable notice, to allow all interested parties

considered as such under the law of the Party concerned, to appear in person or through

counsel, to present evidence and to be heard on the serious injury or threat thereof, or on the

serious deterioration in the economic situation or threat thereof, and the appropriate remedy;

or

& /en 197

(b) alternatively, in the case of the European Union, provide an opportunity to all interested

parties to be heard provided they have made a written application within the period set out in

the notice of initiation showing that they are likely to be affected by the outcome of the

investigation and that there are special reasons for them to be heard orally.

ARTICLE 5.21

Confidential Information

Any information which is by nature confidential or which is provided on a confidential basis shall,

upon good cause being shown, be treated as such by the competent investigating authority. Such

information shall not be disclosed without permission of the party submitting it. Parties providing

confidential information shall be requested to furnish non-confidential summaries thereof or, if

those parties indicate that such information cannot be summarised, the reasons why a summary

cannot be provided. The summaries shall be in sufficient detail to permit a reasonable

understanding of the substance of the submitted confidential information. However, if the

competent investigating authority finds that a request for confidentiality is not warranted and if the

party concerned is either unwilling to make the information public or to authorise its disclosure in

generalised or summary form, it may disregard such information unless it can be demonstrated to its

satisfaction from appropriate sources that the information is correct.

& /en 198

ARTICLE 5.22

Adoption, Notification, Consultation and Publication

1. If a Party considers that one of the situations set out in Articles 5.10 or 5.15 exists, it shall

immediately refer the matter to the Joint Committee for examination. The Joint Committee may

make any recommendation required to remedy the situations that have arisen. If no recommendation

has been made by the Joint Committee aimed at remedying the situations, or no other satisfactory

solution has been reached within 30 days of the matter being referred to the Joint Committee, the

importing Party may adopt the bilateral safeguard measure appropriate to remedy the situations in

accordance with Section C.

2. The competent investigating authority shall provide the exporting Party with all relevant

information, which shall include evidence of serious injury or threat thereof, or of a serious

deterioration, or threat thereof, in the economic situation caused by increased imports, a precise

description of the product involved and the proposed bilateral safeguard measure, the proposed date

of imposition and the expected duration of the proposed bilateral safeguard measure.

3. A Party shall promptly notify the other Party, in writing, when it:

(a) initiates a bilateral safeguard procedure under Section C;

(b) decides to apply a provisional bilateral safeguard measure;

& /en 199

(c) determines the existence of serious injury or threat thereof, or the serious deterioration in the

economic situation or threat thereof, caused by increased imports, pursuant to Article 5.19;

(d) decides to apply or extend a bilateral safeguard measure; and

(e) decides to modify a bilateral safeguard measure previously adopted.

4. If a Party makes a notification pursuant to subparagraph 3(a), such notification shall include:

(a) a copy of the public version of the application and its annexes or, in the case of investigations

initiated on the initiative of the competent investigating authority, of the relevant documents

showing that the requirements of Article 5.17 are met, as well as a questionnaire detailing the

points on which the interested parties must provide information; and

(b) a precise description of the imported good concerned.

5. If a Party makes a notification pursuant to subparagraphs 3(b) or (c), it shall include a copy of

the public version of its determination and, if applicable, of the document providing the technical

reasoning on which the determination is based.

& /en 200

6. If a Party makes a notification pursuant to subparagraph 3(d) concerning the application or

extension of a bilateral safeguard measure, it shall include in that notification:

(a) a copy of the public version of its determination and, if applicable, of the document providing

the technical reasoning on which the determination is based;

(b) evidence of serious injury or threat thereof, or of a serious deterioration in the economic

situation or threat thereof, caused by increased imports of an originating good of the other

Party, as a result of the reduction or elimination of a customs duty under this Agreement;

(c) a precise description of the originating good subject to the bilateral safeguard measure,

including its heading, subheading or the tariff line under which it is classified under the

Harmonized System;

(d) a precise description of the bilateral safeguard measure applied or extended;

(e) the initial date of application of the bilateral safeguard measure, its expected duration and, if

applicable, a timetable for progressive liberalisation of the measure; and

(f) in case of an extension of the bilateral safeguard measure, evidence that the domestic industry

concerned is adjusting.

& /en 201

7. At the request of the Party affected by the bilateral safeguard procedure under Section C, the

other Party shall hold consultations with the requesting Party to review a notification made pursuant

to subparagraphs 3(a) or (b).

8. The Party intending to apply or extend a bilateral safeguard measure shall notify the other

Party and give the possibility to hold prior consultations to discuss the eventual application or

extension. If no satisfactory solution has been reached within 30 days after the date of the

notification the former Party may apply or extend such measure.

9. The competent investigating authority shall also publish its findings and reasoned conclusions

reached on all relevant matters of fact and law in the official journal of the Party concerned,

including the description of the imported good and the situation which has given rise to the

imposition of measures in accordance with Articles 5.10 or 5.15, the causal link between such

situation and the increased imports, and the form, level and duration of the measures.

10. The competent investigating authorities shall treat any confidential information in full

compliance with Article 5.21.

& /en 202

CHAPTER 6

SANITARY AND PHYTOSANITARY MEASURES

ARTICLE 6.1

Definitions

1. For the purposes of this Chapter:

(a) "competent authorities" means the competent authorities of each Party referred to in

Annex 6-A (Competent Authorities);

(b) "emergency measure" means a sanitary or phytosanitary measure that is applied by the

importing Party to goods of the other Party to address an urgent problem of human, animal or

plant life or health protection that arises or threatens to arise in the importing Party; and

(c) "WTO SPS Committee" means the Committee on Sanitary and Phytosanitary Measures

established pursuant to Article 12 of the SPS Agreement.

& /en 203

2. The definitions in Annex A of the SPS Agreement, as well as those of the Codex Alimentarius

(Codex), the World Organisation for Animal Health (hereinafter referred to as "WOAH") and the

International Plant Protection Convention, signed in Rome on 6 December 1951 (hereinafter

referred to as "IPPC") apply to this Chapter.

ARTICLE 6.2

Objectives

The objectives of this Chapter are to:

(a) protect human, animal or plant life or health in the territories of the Parties while facilitating

trade between them;

(b) reinforce and further the implementation of the SPS Agreement;

(c) strengthen communication, consultation and cooperation between the Parties, in particular

between their competent authorities;

(d) ensure that sanitary and phytosanitary measures implemented by the Parties do not create

unnecessary barriers to trade;

& /en 204

(e) improve consistency, certainty and transparency of the sanitary and phytosanitary measures of

each Party and their implementation; and

(f) encourage the development and adoption of international standards, guidelines and

recommendations by the relevant international organisations and enhance the implementation

thereof by the Parties.

ARTICLE 6.3

Scope

This Chapter applies to all sanitary and phytosanitary measures of a Party that may, directly or

indirectly, affect trade between the Parties.

ARTICLE 6.4

Relation to the SPS Agreement

The Parties affirm their rights and obligations with respect to each other under the SPS Agreement.

& /en 205

ARTICLE 6.5

Resources for Implementation

Each Party shall use the necessary resources to implement effectively this Chapter.

ARTICLE 6.6

Equivalence

1. The Parties acknowledge that the recognition of the equivalence of sanitary and phytosanitary

measures of the other Party is an important means to facilitate trade.

2. The importing Party shall recognise sanitary and phytosanitary measures of the exporting

Party as equivalent to its own measures if the exporting Party objectively demonstrates to the

importing Party that its measures achieve the appropriate level of sanitary and phytosanitary

protection of the importing Party.

3. The importing Party has the right to make the final determination as to whether a sanitary or

phytosanitary measure applied by the exporting Party achieves its appropriate level of sanitary and

phytosanitary protection.

& /en 206

4. A Party shall, when assessing or determining the equivalence of a measure of the other Party,

take into account among others and if relevant:

(a) decisions of the WTO SPS Committee;

(b) the work of the relevant international organisations;

(c) any knowledge and past experience in trading with the other Party; and

(d) information provided by the other Party.

5. Each Party shall base its assessment, determination and maintenance of equivalence on

standards, guidelines, and recommendations of the relevant international standardisation bodies or,

as appropriate, on a risk assessment.

6. The importing Party shall promptly initiate the assessment to determine the equivalence if it

receives a request for an equivalence assessment from the other Party that is supported by the

required information.

7. When the importing Party concludes the equivalence assessment, it shall promptly notify its

determination to the other Party.

& /en 207

8. When the importing Party has determined that it recognises the measure of the exporting

Party as equivalent, the importing Party shall promptly initiate the necessary legislative or

administrative measures to implement the recognition.

9. Without prejudice to Article 6.16, if a Party intends to adopt, modify or repeal a measure

which is subject to an equivalence determination affecting trade between the Parties, that Party

shall:

(a) notify the other Party of its intention at an appropriate early stage where any comments

submitted from the other Party can be taken into account;

(b) provide, on request of the other Party, information and the rationale concerning its planned

changes.

10. The importing Party shall maintain its recognition of equivalence for the time that the

measure, which is subject to the intended change, remains in effect.

11. The Parties shall discuss the intended modifications notified pursuant to subparagraph 9(a) on

the request of either Party. The importing Party shall review any information submitted pursuant to

subparagraph 9(b) without undue delay.

& /en 208

12. If a Party adopts, modifies or repeals a sanitary or phytosanitary measure that is subject to an

equivalence determination by the other Party, the importing Party shall maintain its recognition of

equivalence provided that the measures of the exporting Party concerning the product continue to

achieve the appropriate level of sanitary or phytosanitary protection of the importing Party. On

request of a Party, the Parties shall promptly discuss the determination made by the importing Party.

ARTICLE 6.7

Risk Assessment

1. The Parties recognise the importance of ensuring that their respective sanitary and

phytosanitary measures are based on scientific principles and conform to the relevant international

standards, guidelines and recommendations.

2. If a Party considers that a specific sanitary or phytosanitary measure adopted or maintained by

the other Party is constraining, or has the potential to constrain, its exports and that measure is not

based on a relevant international standard, guideline or recommendation, or a relevant standard,

guideline or recommendation does not exist, that Party may request information from the other

Party. The requested Party shall provide to the requesting Party an explanation of the reasons and

relevant information regarding that measure.

& /en 209

3. If the relevant scientific evidence is insufficient, a Party may provisionally adopt a sanitary or

phytosanitary measure on the basis of available pertinent information including from the relevant

international organisations. In such circumstances, that Party shall seek to obtain the additional

information necessary for a more objective risk assessment and review the sanitary or phytosanitary

measure accordingly within a reasonable period of time.

4. Recognising the rights and obligations of the Parties pursuant to the relevant provisions of the

SPS Agreement, nothing in this Chapter shall be construed as preventing a Party from:

(a) establishing the level of sanitary or phytosanitary protection it determines to be appropriate in

accordance with Article 5 of the SPS Agreement;

(b) establishing or maintaining an approval procedure that requires a risk assessment to be

conducted before that Party grants a product access to its market; or

(c) adopting or maintaining sanitary or phytosanitary precautionary measures in accordance with

paragraph 7 of Article 5 of the SPS Agreement.

5. Each Party shall ensure that its sanitary and phytosanitary measures do not arbitrarily or

unjustifiably discriminate between the Parties where identical or similar conditions prevail. A Party

shall not apply sanitary and phytosanitary measures in a manner that would constitute a disguised

restriction to trade between the Parties.

& /en 210

6. A Party conducting a risk assessment shall:

(a) take into account relevant guidance of the WTO SPS Committee and international standards,

guidelines and recommendations;

(b) consider risk management options that are no more trade restrictive than required to achieve

the level of sanitary or phytosanitary protection it has determined to be appropriate in

accordance with paragraph 3 of Article 5 of the SPS Agreement, taking into account technical

and economic feasibility, and

(c) take into account the objective of minimising negative effects on trade when determining the

appropriate level of sanitary or phytosanitary protection in accordance with paragraph 4 of

Article 5 of the SPS Agreement, and select a risk management option that is no more trade

restrictive than required to achieve the sanitary or phytosanitary objective, taking into account

technical and economic feasibility.

7. On request of the exporting Party, the importing Party shall inform the exporting Party of the

progress made with regard to a specific risk assessment concerning a market access request of the

exporting Party, and of any delay that may occur during the process.

& /en 211

8. Without prejudice to Article 6.16, a Party shall not stop the importation of a product of the

other Party solely for the reason that the Party is undertaking a review of its sanitary or

phytosanitary measures, if the importing Party permitted the importation of that product of the other

Party at the time the review was initiated.

ARTICLE 6.8

Adaptation to Regional Conditions, Including Pest- or Disease-Free Areas

and Areas of Low Pest or Disease Prevalence

General

1. The Parties recognise that the adaptation of sanitary and phytosanitary measures to regional

pest or disease conditions is an important means to protect animal and plant life or health, and to

facilitate trade.

2. The Parties shall recognise the concepts of pest- or disease- free areas and areas of low pest or

disease prevalence. The determination of such areas shall be based on factors such as geography,

ecosystems, epidemiological surveillance, and the effectiveness of sanitary or phytosanitary

controls.

& /en 212

3. The exporting Party claiming that areas within its territory are pest- or disease-free areas or

areas of low pest or disease prevalence shall provide the necessary evidence thereof in order to

objectively demonstrate to the importing Party that such areas are, and are likely to remain, pest- or

disease-free areas or areas of low pest or disease prevalence, respectively. For that purpose, the

exporting Party shall, on request of the importing Party, provide reasonable access for inspection,

testing and other relevant procedures.

4. When determining the areas referred to in paragraph 2 by regionalisation decisions, the

Parties shall take into account the relevant guidance of the WTO SPS Committee and base their

measures on international standards, guidelines and recommendations, or, in case those do not

achieve the appropriate level of sanitary or phytosanitary protection of the Party, on a risk

assessment appropriate to the circumstances.

5. For the determination of areas referred to in paragraph 2, the importing Party shall take into

account any relevant information of and prior experience with the authorities of the exporting Party.

6. The importing Party may determine that an expedited process can be used to evaluate a

request from the exporting Party for recognition of pest- or disease-free areas or areas of low pest or

disease prevalence.

7. If the exporting Party does not agree with the determination of the importing Party, the

importing Party shall provide a justification to the exporting Party.

& /en 213

8. On request of the importing Party, the exporting Party shall provide a full explanation and

supporting data for the determinations and decisions covered by this Article. During those

processes, the Parties shall endeavour to avoid unnecessary disruption to trade.

Animals, Animal Products and Animal By-Products

9. The Parties recognise the principle of zoning which they agree to apply in their trade. The

Parties also recognise the official animal health status as determined by the WOAH.

10. The importing Party shall normally base its own determination of the animal health status of

the exporting Party on the evidence provided by the exporting Party in accordance with the SPS

Agreement and the WOAH Terrestrial Animal Health Code and the WOAH Aquatic Animal Health

Code.

11. The importing Party shall assess any additional information received from the exporting Party

without undue delay and normally within 90 days after receipt. The importing Party may request an

on-site inspection to the exporting Party and shall carry out any inspection in accordance with the

principles set out in Article 6.11 and within 90 days following receipt of the request for inspection

by the exporting Party unless otherwise agreed between the Parties.

12. The Parties recognise the concept of compartmentalisation and shall cooperate on this matter.

& /en 214

Plants and Plant Products

13. The Parties recognise the concepts of pest free areas, pest free places of production and pest

free production sites, as well as areas of low pest prevalence as means to protect plant life or health,

and to facilitate trade as specified in relevant IPPC International Standards for Phytosanitary

Measures (hereinafter referred to as "ISPM"), which they agree to apply to goods traded between

them.

14. On request of the exporting Party, the importing Party shall, when adopting or maintaining

phytosanitary measures, take into account pest free areas, pest free places of production, pest free

production sites, as well as areas of low pest prevalence established by the exporting Party in

accordance with the relevant international standards, guidelines and recommendations.

15. The exporting Party shall identify pest free areas, pest free places of production, pest free

production sites or areas of low pest prevalence and provide that information to the other Party. On

request, the exporting Party shall provide a full explanation and supporting data in accordance with

the relevant ISPM or otherwise as appropriate.

16. Without prejudice to Article 6.16, the importing Party shall, in principle, base its own

determination of the plant health status of the exporting Party or parts thereof on the information

provided by the exporting Party in accordance with the SPS Agreement and the relevant ISPM.

& /en 215

17. The importing Party shall assess any additional information received from the exporting Party

without undue delay and normally within 90 days after receipt. The importing Party may request an

on-site inspection to the exporting Party and shall carry out any inspection in accordance with the

principles set out in Article 6.11 and within 6 months following receipt of the request for inspection

by the exporting Party unless otherwise agreed between the Parties. When agreeing on a different

period, the Parties shall take into account the biology of the pest and the crop concerned.

ARTICLE 6.9

Transparency

1. The Parties recognise the value of sharing information about their sanitary and phytosanitary

measures on an ongoing basis, and of providing the other Party with the opportunity to comment on

their proposed sanitary and phytosanitary measures.

2. In implementing this Article, each Party shall take into account relevant guidance of the WTO

SPS Committee as well as international standards, guidelines and recommendations.

& /en 216

3. Unless urgent problems of human, animal or plant life or health protection arise or threaten to

arise, or the measure is of a trade-facilitating nature, a Party shall notify a proposed sanitary or

phytosanitary measure which may affect trade between the Parties and normally allow at least 60

days after the notification for the other Party to provide written comments. If feasible and

appropriate, that Party should allow more than 60 days for comments and shall consider any

reasonable request from the other Party to extend the time period for comments. On request, the

Party shall respond to the written comments of the other Party in an appropriate manner.

4. The Parties shall:

(a) pursue transparency as regards sanitary and phytosanitary measures applicable to trade;

(b) enhance mutual understanding of the sanitary or phytosanitary measures of each Party and

their application; and

(c) exchange information on matters related to the development and application of sanitary or

phytosanitary measures with a view to minimising their negative effects on trade between the

Parties.

& /en 217

5. Each Party shall, on request of the other Party and normally within 15 days after the receipt of

the request, provide information on:

(a) import requirements that apply for the import of specific products; and

(b) progress on the application for the approval of specific products.

6. The information referred to in subparagraph 4(c) and paragraph 5 is deemed to be provided if

it has been made available by notification to the WTO in accordance with the relevant rules and

procedures or if the information has been made available free of fees on a publicly accessible

official website of the Party.

7. On request, a Party shall provide to the other Party the relevant information that the Party

considered to develop the proposed measure, as appropriate and to the extent permitted by the

confidentiality and privacy requirements of the Party providing the information.

8. A Party may request the other Party to discuss, if appropriate and feasible, about any trade

concern in relation to a proposed sanitary or phytosanitary measure and about the availability of

alternative, significantly less trade-restrictive approaches for achieving the objective of that

measure.

9. Each Party shall publish, preferably by electronic means, notices of sanitary or phytosanitary

measures in an official journal or on a website.

& /en 218

10. Each Party shall ensure that the text or the notice of a sanitary or phytosanitary measure

specifies the date on which the measure takes effect and the legal basis for the measure.

11. The exporting Party shall notify the importing Party in a timely and appropriate manner:

(a) of a significant sanitary or phytosanitary risk related to the current trade;

(b) of urgent situations where a change in animal or plant health status in the territory of the

exporting Party may affect current trade;

(c) of significant changes in the pest or disease status, such as the presence and evolution of pests

or diseases, including the application of regionalisation decisions; and

(d) of significant changes in food safety, pest or disease management, control or eradication

policies or practices that may affect current trade.

12. If feasible and appropriate, a Party should provide a period of more than six months between

the date of publication of a sanitary or phytosanitary measure that may affect trade between the

Parties and the date on which the measure takes effect, unless the measure is intended to address an

urgent problem of human, animal or plant life or health protection or the measure is of a

trade-facilitating nature.

13. A Party shall provide to the other Party, on request, information on all sanitary or

phytosanitary measures related to the importation of a product into its territory.

& /en 219

ARTICLE 6.10

Trade Facilitation

Approval Procedures

1. The Parties recognise that each Party has the right to develop and apply approval procedures

to ensure the fulfillment of the appropriate level of sanitary and phytosanitary protection of the

importing Party while minimising negative effects on trade.

2. Each Party shall ensure that all sanitary and phytosanitary approval procedures affecting trade

between the Parties:

(a) are undertaken and completed without undue delay; and

(b) are not conducted in a manner which would constitute an arbitrary or unjustifiable

discrimination against the other Party.

3. Each Party shall endeavour to ensure that products exported to the other Party meet the

appropriate level of sanitary or phytosanitary protection of the importing Party. To that end, the

exporting Party shall establish and carry out appropriate control measures, including risk-based on-

site inspections where appropriate. The importing Party may require that the relevant competent

authority of the exporting Party objectively demonstrates, to the satisfaction of the importing Party,

that its import requirements are fulfilled.

& /en 220

4. If the importing Party requires a product to be approved prior to importation, that Party shall,

on request of the exporting Party, promptly make available information about sanitary and

phytosanitary import procedures. The importing Party shall in particular ensure that:

(a) the standard processing period of each procedure is published or that the anticipated

processing period is communicated on request to the exporting Party;

(b) the competent authority of the importing Party, when receiving an application, promptly

examines the completeness of the documentation and informs the exporting Party in a precise

and complete manner of all missing elements;

(c) the competent authority of the importing Party transmits as soon as possible the results of the

procedure in a precise and complete manner to the exporting Party so that corrective action, if

necessary, may be taken;

(d) the competent authority of the importing Party proceeds, even if the application is missing

elements, as far as practicable with the procedure if the exporting Party so requests; and

(e) the competent authority of the importing Party informs the exporting Party, on request, of the

stage of the procedure including an explanation of any delay.

& /en 221

5. If a Party requires for the approval process a risk assessment, that Party shall under normal

circumstances promptly, and normally within one year after the date of receipt of the required

information for the exportation of the product, make that risk assessment available.

6. Each Party shall endeavour to apply reasonable timelines for all steps of its approval

processes and shall promptly start those processes on receipt of an application from the other Party.

7. Each Party shall avoid unnecessary duplication and administrative burdens with respect to:

(a) any documentation, information or action that it requires of the applicant as part of its

approval processes; and

(b) any information the Party evaluates as part of the approval processes.

8. Each Party shall promptly make available any changes to its required approval processes or

related requirements. Except in duly justified circumstances related to its level of protection, each

Party shall provide a transition period between the publication of any changes to its approval

processes or related requirements and their entry into force to allow the other Party to become

familiar with and adapt to such changes. Each Party shall endeavour to accommodate and avoid

lengthening the approval process for applications submitted prior to the publication of the changes.

If the change of the approval processes reduces burdens, the entry into force shall not be

unnecessarily delayed.

& /en 222

9. On request, a Party shall provide, in a timely manner, to the other Party information on the

stage of the approval procedure.

Specific Plant Health related Conditions

10. In accordance with applicable standards agreed under the IPPC, each Party shall maintain

adequate information on its pest status, which may include surveillance, eradication and

containment programmes and their results, in order to support the categorisation of pests and to

justify phytosanitary import measures.

11. Each Party shall endeavour to establish and update a list of regulated pests for products for

which a phytosanitary concern exists. The list shall contain:

(a) the quarantine pests not present within any part of its territory;

(b) the quarantine pests present but not widely distributed and under official control; and

(c) the regulated non-quarantine pests.

12. Each Party shall limit its import requirements for plants or plant products for which a

phytosanitary concern exists to measures ensuring the absence of regulated pests. Such import

requirements shall be applicable to the entire territory of the exporting Party taking into account the

regional conditions.

& /en 223

13. Consignments of products for which phytosanitary measures exist shall be accepted on the

basis of adequate guarantees provided by the exporting Party without pre-clearance programs. The

importing Party may, based on a system approach, confer the related activities for the trade of

products to the competent authority of the exporting Party.

14. The Parties shall only adopt phytosanitary measures that are technically justified, consistent

with the pest risk involved and represent the least restrictive measures available.

15. For the purpose of implementing paragraphs 10 to 14, the Parties shall take into account the

relevant ISPM.

Specific Sanitary and Phytosanitary Import Requirements

16. If several sanitary or phytosanitary measures are available to achieve the appropriate level of

protection of the importing Party, the Parties shall, on request of the exporting Party, establish a

technical dialogue with a view to avoid unnecessary trade disruption and to select the most

practicable solution.

& /en 224

ARTICLE 6.11

Audits

1. In order to determine the ability of the exporting Party to provide the required assurances and

to comply with the sanitary and phytosanitary measures of the importing Party, the importing Party

shall have the right to audit, subject to the provisions of this Article, the competent authorities and

associated or designated inspection systems of the exporting Party.

2. The importing Party may determine that it is necessary to carry out an audit as one of the tools

to assess the official inspection and certification systems of the exporting Party. Such audit shall

follow a systems-based approach which relies on the examination of a sample of system procedures,

documents or records and, where required, on-site inspections of facilities within the scope of the

audit.

3. Audits shall focus primarily on evaluating the effectiveness of the official inspection and

certification systems as well as the capacity of the exporting Party to comply with the sanitary and

phytosanitary import requirements and related control measures, rather than on evaluating specific

establishments or facilities, in order to determine the ability of the exporting Party's competent

authorities to have and maintain control and deliver the required assurances to the importing

country.

& /en 225

4. In conducting an audit, the importing Party shall take into account relevant guidance of the

WTO SPS Committee and act in conformity with relevant international standards, guidelines, and

recommendations.

5. The importing Party shall determine the nature and frequency of audits taking into account the

inherent risks of the product, the track record of past import checks and other available information,

such as audits and inspections carried-out by the competent authority of the exporting Party.

6. Each Party shall endeavour to reduce the frequency and number of audits. If the importing

Party considers it necessary to carry out an audit as one of the tools to assess the official inspection

and certification systems of the exporting Party, as well as the capacity of the exporting Party to

comply with the sanitary and phytosanitary import requirements and related control measures, the

following shall apply:

(a) for the first export request for a specific product, the importing Party shall carry out an audit

on a representative sample of the other Party; and

(b) for any subsequent export request for the same product, with the aim to shorten the time of the

approval procedure, the importing Party shall carry out an audit to the exporting Party only in duly

justified circumstances. If the importing Party carries out an audit, it shall provide an explanation to

the exporting Party.

& /en 226

7. Prior to the audit, the competent authorities of the importing Party and of the exporting Party

shall discuss and lay down in an audit plan:

(a) the rationale for, and the objectives and scope of the audit;

(b) the criteria or requirements against which the exporting Party will be assessed; and

(c) the itinerary and procedures for conducting the audit.

Unless otherwise agreed by the Parties, the importing Party shall provide the exporting Party an

audit plan at least 30 days prior to the audit.

8. The importing Party shall provide information about the results of the audit in writing to the

exporting Party by means of an audit report that sets out findings, conclusions and

recommendations.

9. The importing Party shall provide the draft audit report to the exporting Party, normally

within 30 days of the conclusion of the audit.

10. The importing Party shall provide the exporting Party with the opportunity to comment on the

findings of the audit. The importing Party may take any such comments into account before

drawing conclusions and taking any action. The importing Party shall provide a final report in

writing to the exporting Party normally within two months after the date of receipt of those

comments.

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11. The exporting Party shall inform the importing Party of any corrective actions taken on the

basis of the importing Party's findings and conclusions.

12. Each Party shall ensure that procedures are in place to prevent the disclosure of confidential

information obtained during an audit of the competent authorities of the exporting Party, including

procedures to remove any confidential information from a final audit report before that report is

made publicly available.

13. Any measures taken as a result of audits shall be proportionate to the risks identified and shall

not be more trade restrictive than required to achieve the appropriate level of sanitary or

phytosanitary protection of the importing Party. If so requested, consultations regarding the

situation shall be held in accordance with Article 6.19. The Parties shall consider any information

provided through such consultations.

14. Each Party shall bear its own costs associated with the audit.

ARTICLE 6.12

Import Checks

1. Each Party shall ensure that its import checks are risk-based, carried out without undue delay

and applied in a proportionate and non-discriminatory manner.

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2. Each Party shall ensure that products exported to the other Party meet the sanitary and

phytosanitary requirements of the importing Party.

3. Each Party shall make available to the other Party, on request, information on its import

procedures including the frequency of import checks regarding sanitary and phytosanitary measures

and the factors it considers as determining the risks associated with importations.

4. If an import check reveals that a product does not comply with the relevant import

requirements, the importing Party shall:

(a) base its action on an assessment of the risk involved and ensure that the action is not more

trade-restrictive than necessary to achieve its appropriate level of sanitary or phytosanitary

protection;

(b) inform the importer or its representative of the reasons for the non-compliance, the legal basis

for the action and, as appropriate, on the place of disposal of that consignment; and

(c) provide to the importer or its representative the opportunity to provide additional information

for assisting that Party in taking a decision.

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5. If a Party prohibits or restricts the importation of a good of the other Party on the basis of a

negative result of an import check, the importing Party, shall, in accordance with its law, if

requested by the competent authority of the exporting Party or the operator responsible for the

consignment, provide in writing through normal channels the reason for the prohibition or

restriction, the legal basis or authorisation for the action and, as appropriate, information on the

place of disposal of that consignment.22

6. If the rejected consignment is accompanied by a sanitary or phytosanitary certificate, the

importing Party shall inform the competent authority of the exporting Party and provide all

appropriate information, including the legal basis for the action, detailed laboratory results and

methods. The importing Party shall maintain physical and electronic documentation regarding the

identification, collection, sampling, transportation and storage of the test sample and the analytical

methods used on the test sample. The importing Party shall also inform the importer or its

representative on the disposal of that consignment. In the case of pest interceptions, the notification

shall indicate the pest at species level whenever feasible.

7. If the importing Party determines that there is a significant, sustained or recurring pattern of

non-conformity with a sanitary or phytosanitary measure, the importing Party shall notify the

exporting Party of the non-conformity.

22 For greater certainty, nothing in this Article prevents an importing Party from disposing of a

consignment which is found to have an infectious pathogen or pest that can, if urgent action is

not taken, spread and cause damage to human, animal or plant life or health in the territory of

that Party.

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8. Notwithstanding paragraph 6, the importing Party shall provide to the exporting Party, on

request, available information on goods from the exporting Party that were found not to be in

conformity to a sanitary or phytosanitary measure of the importing Party.

9. Any fees imposed with respect to any procedure to check and ensure the fulfilment of sanitary

or phytosanitary measures shall not be higher than the actual cost of the service.

ARTICLE 6.13

Certification

1. If a Party requires a sanitary or phytosanitary certificate for the importation of a good such

certificate shall be based on the international standards of the Codex, the IPPC and the WOAH.

2. Each Party shall ensure that its certificates, including any attestations, are prepared in a

manner that avoids imposing unnecessary burdens for the trade between the Parties.

3. The importing Party shall promptly provide to the other Party, on request, information on the

certificates required for a specific product.

4. The Parties shall strengthen their cooperation in developing model certificates with a view to

reducing administrative burdens and facilitating access to their respective markets.

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5. The Parties shall promote the implementation of electronic certification and other

technologies to facilitate trade between them.

6. Each Party shall accept the exchange of original certificates either by a paper-based system or

by a secure method of electronic data transmission that offers an equivalent certification guarantee.

The exporting Party may provide electronic official certification if the importing Party has

determined that equivalent security guarantees are provided, including the use of a digital signature

and the guarantee of the authenticity of the document.

ARTICLE 6.14

Application of SPS Measures

1. Without prejudice to Article 6.8, each Party shall apply its sanitary or phytosanitary measures

to the territory of the other Party.

2. In order to avoid an arbitrary or unjustifiable discrimination, the same import requirements

shall apply to the territory of the exporting Party where identical or similar sanitary or phytosanitary

conditions exist.

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3. For the first export request for a specific product, the importing Party shall promptly start the

approval procedure for an application of the other Party or, as the case may be, of one or a group of

Member States of the European Union. The approval procedure shall follow the procedure set out in

Article 6.10 and, in case of an application of a group of Member States where identical or similar

sanitary or phytosanitary conditions exist, shall not take longer than for an application of one

Member State.

4. For a subsequent export request related to the same product, the importing Party shall approve

the application no later than six months after the reception of the request, except in duly justified

cases. Information requests shall be limited to what is necessary and shall take into account

information already available to the importing Party, such as information on the legislative

framework and previous audit reports.

ARTICLE 6.15

Elimination of Redundant Control Measures

1. The Parties recognise that the exporting Party is responsible for ensuring that establishments,

facilities and products eligible for exports meet the applicable sanitary requirements of the

importing Party.

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2. If the importing Party maintains a list of approved establishments or facilities for the import

of a specific good, it shall, on request of the exporting Party accompanied by the appropriate

guarantees, approve an establishment or facility situated in the territory of the exporting Party

without prior inspection thereof, subject to the following conditions and procedures:

(a) the importing Party has authorised the import of the good on the basis of an evaluation of the

control system on animal health and food safety conditions applied by the competent

authorities of the exporting Party;

(b) the establishment or facility concerned has been approved by the competent authority of the

exporting Party;

(c) the competent authority of the exporting Party has the authority to suspend or withdraw the

approval of the establishment or facility concerned; and

(d) the exporting Party has provided the relevant information requested by the importing Party.

3. The importing Party shall include the establishments or facilities on the list of approved

establishments or facilities normally within 45 days after the date of receipt of the request of the

exporting Party. The list shall be made publicly available.

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4. The importing Party shall have the right to audit the control system of the exporting Party

after the export approval. Those audits may include on-site inspection of a representative number of

establishments or facilities included in the list of approved establishments or facilities, or of those

requested for approval by the exporting Party. If the importing Party identifies as a result of the

audit serious recurrent cases of non-compliance, the importing Party may suspend the recognition of

the control system of the competent authority of the exporting Party.

5. In duly justified circumstances, the importing Party may refuse the approval of establishments

or facilities that are considered as non-compliant with its requirements. In such a case, the

importing Party shall notify the exporting Party of the refusal to approve establishments or facilities

and provide a justification for that refusal.

6. The importing Party may carry out audits in accordance with Article 6.11 as part of the

approval procedure. Such audits shall be limited to the structure, organisation and responsibilities of

the competent authority responsible for the approval of the establishment or facility and the sanitary

guarantees regarding the compliance with the requirements of the importing Party. Those audits

may include on-site inspection of a representative number of establishments or facilities listed as

approved establishments or facilities or for which a request for approval was made by the exporting

Party.

7. Based on the results of such audits, the importing Party may modify the list of establishments

or facilities.

8. This Article does not apply to measures relating to plants and plant products.

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ARTICLE 6.16

Emergency Measures

1. The importing Party may, on serious grounds, provisionally adopt the emergency measures

necessary for the protection of human, animal or plant life or health.

2. A Party that adopts an emergency measure shall promptly notify that measure in writing to the

other Party. The Party that has adopted an emergency measure shall take into consideration any

information provided by the other Party.

3. After adopting an emergency measure, the Party shall review the rationale thereof normally

within six months, provided that the relevant information is available, and inform on request the

other Party of the results of the review. A Party shall not maintain the emergency measure unless

the urgent problem or the threat persists. If the Party maintains the emergency measure, that

measure should be periodically reviewed.

4. A Party that adopts an emergency measure shall, in order to avoid unnecessary disruptions to

trade, provide the most suitable and proportionate solution for consignments in transport between

the Parties, taking into account the identified risk.

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ARTICLE 6.17

Cooperation

1. The Parties shall explore, in accordance with this Chapter, options for further cooperation and

information exchange between the Parties on sanitary and phytosanitary matters of mutual interest.

Those options may include trade facilitation initiatives.

2. The Parties shall cooperate to facilitate the implementation of this Chapter and may jointly

identify initiatives on sanitary and phytosanitary matters with the aim of eliminating unnecessary

barriers to trade between the Parties.

3. The Parties may promote cooperation in all multilateral fora, in particular with the relevant

international standardisation bodies.

ARTICLE 6.18

Exchange of Information

Without prejudice to other provisions of this Chapter, a Party may request information from the

other Party on matters arising under this Chapter. The requested Party shall endeavour to provide, in

conformity with its own confidentiality and privacy requirements, available information to the

requesting Party within a reasonable period of time, and if possible, by electronic means.

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ARTICLE 6.19

Consultations

1. Each Party may request consultations on specific trade concerns relating to sanitary and

phytosanitary measures.

2. The Parties shall hold those consultations within 30 days after the receipt of the request,

unless the Parties agree otherwise.

3. The Parties shall endeavour to provide all relevant information necessary to reach a mutually

agreed solution that avoids unnecessary disruption to trade.

ARTICLE 6.20

Contact Points

1. Each Party shall designate a contact point for the implementation of this Chapter and notify

the other Party of the contact details including the indication of the official in charge.

2. The Parties shall promptly notify each other of any change of those contact details.

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ARTICLE 6.21

Sub-Committee on Sanitary and Phytosanitary Measures

1. The Sub-Committee on Sanitary and Phytosanitary Measures established pursuant to

Article 1.10.1(e)(Sub-Committees and Other Bodies of Part III of this Agreement) shall:

(a) provide a forum to improve the Parties' understanding of sanitary and phytosanitary matters

that relate to the implementation of this Chapter, including the regulatory processes related to

SPS measures;

(b) monitor the implementation of this Chapter and consider any matter relating to this Chapter,

including all matters which may arise in relation to its implementation;

(c) provide a forum for discussion of concerns from the application of sanitary or phytosanitary

measures with a view to reaching mutually acceptable solutions and promptly addressing any

matters that may create unnecessary obstacles to trade between the Parties;

(d) exchange information, expertise and experiences on sanitary and phytosanitary matters;

2. The Sub-Committee on Sanitary and Phytosanitary Measures may:

(a) identify areas for cooperation on sanitary and phytosanitary measures which may include

technical assistance;

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(b) promote cooperation on sanitary and phytosanitary matters under discussion in multilateral

fora, including the WTO SPS Committee and international standardisation bodies; and

(c) establish working groups consisting of expert-level representatives of the Parties, to address

specific sanitary or phytosanitary matters, which may invite, with the modalities to be

decided, other experts to participate, including from non-governmental organisations.

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CHAPTER 7

COOPERATION ON ANIMAL WELFARE AND ANTI-MICROBIAL RESISTANCE

ARTICLE 7.1

Objectives

The objectives of this Chapter are to provide a framework for dialogue and cooperation with a view

to enhancing the protection and welfare of animals and reaching a common understanding

concerning animal welfare standards, and to strengthen the fight against the development of anti-

microbial resistance.

ARTICLE 7.2

Animal Welfare

1. The Parties recognise that animals are sentient beings.

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2. The Parties recognise the value of the World Organisation for Animal Health (WOAH)

animal welfare standards, and shall endeavour to improve their implementation while respecting

their right to determine the level of their science-based measures based on the WOAH animal

welfare standards.

3. The Parties shall endeavour to cooperate in international fora with the aim of promoting

further development of good animal welfare practices and their implementation. The Parties

recognise the value of increased research collaboration in the area of animal welfare.

ARTICLE 7.3

Anti-Microbial Resistance

1. The Parties recognise that anti-microbial resistance is a serious threat to human and animal

health. Misuse of anti-microbials in animal production, including non-therapeutic use, can

contribute to anti-microbial resistance that may represent a risk to human and animal health. The

Parties recognise that the nature of the threat requires a transnational and "One Health"23 approach.

2. The Parties shall cooperate to reduce the use of anti-microbials in animal production and to

ban their use as growth promotors with the aim of combatting anti-microbial resistance in line with

the "One Health" approach.

23 "One Health" as defined by the World Health Organisation (WHO) is an approach combining

policies in multiple sectors to achieve better public health outcomes.

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3. The Parties shall cooperate in and follow existing and future guidelines, standards,

recommendations and actions developed in relevant international organisations, initiatives and

national plans aiming to promote the prudent and responsible use of anti-microbials in animal

husbandry and veterinary practices.

4. The Parties shall promote cooperation in all multilateral fora, in particular in the international

standard setting bodies.

ARTICLE 7.4

Working Group on Animal Welfare and Anti-Microbial Resistance

1. The Parties shall endeavour to exchange information, expertise and experiences in the fields

of animal welfare and combatting anti-microbial resistance with the aim of implementing

Articles 7.2 and 7.3.

2. To that end, the Parties shall establish a working group on animal welfare and anti-microbial

resistance which shall share information with the Sub-Committee on Sanitary and Phytosanitary

Measures, as appropriate. The representatives of the Parties in the working group may jointly decide

to invite experts for specific activities.

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ARTICLE 7.5

Non-Application of Dispute Settlement

A Party shall not have recourse to dispute settlement under Chapter 31 (Dispute Settlement)

concerning the interpretation or application of the provisions of this Chapter.

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CHAPTER 8

RECOGNITION OF THE PARTIES' RIGHT TO REGULATE THE ENERGY SECTOR

ARTICLE 8.1

Recognition of the Parties' Right to Regulate the Energy Sector

1. The Parties confirm their full respect for their respective sovereignty, which includes the

ownership and management of all hydrocarbons in the subsoil of their respective territories by the

state or by the relevant public authorities, and their respective sovereign right to regulate with

respect to matters addressed in this Chapter in accordance with their respective law, in the full

exercise of their democratic processes.

2. In the case of Mexico, the European Union, without prejudice to its rights and remedies

available under this Agreement,24 recognizes that:

(a) Mexico reserves its sovereign right to reform its Constitution (Constitución Política de los

Estados Unidos Mexicanos) and its domestic legislation regarding the energy sector, including

hydrocarbons and electricity;

24 For greater certainty, these rights and remedies include those arising from Mexico's

obligations pursuant to the provisions in Chapter 10 (Investment) and the related annexes.