Mexico| EU-Mexico Agreement: greater protection for European investments

Summary

In a context marked by protectionist measures, the rapid entry into force of the modernized EU-Mexico Free Trade Agreement (TLCUEM) would help to provide certainty for investors, attract foreign investment, diversify exports, and mitigate disruptions in global supply chains.

Key points

• Key points:
• In 2018, a preliminary text of the modernized TLCUEM was published, highlighting greater protection for investors than what is currently available through some bilateral investment agreements.
• The modernized TLCUEM would include an investment dispute settlement with a broader scope than the one established in the United States-Mexico-Canada Agreement (USMCA).
• Among the comitments in the preliminary text are: ensuring fair and equitable treatment for investors, preventing reforms that restrict foreign participation and prohibiting "performance requierements" that condition the receipt of an advantage on the use of domestic content.
• Other obligations include non-discrimination based on nationality in public sector procurement, mantaining independent regulators in energy, telecomunications and competition, and ensuring that Parties administer measures of general application in a consistent, impartial, and reasonable manner.
• Mexico is currently reviewing the modernized TLCUEM to continue promoting domestic production. In this regard, it is essential that the commitments under the TLCUEM and the policies adopted by the current administration are consistent and complementary.

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