The agreement contains provisions relating to trade in goods and services as well as investments, dispute resolution procedures, rules of origin, anti-dumping and countervailing duties, as well as the temporary entry of businessmen, among others. The new agreement reaffirms both existing EU and Mexican intellectual property laws. The trade agreement monitored an increase in trade in agricultural products, industrial products, oil and gas and other raw materials from about $290 billion in 1993 to more than $1.1 billion. Until 2016. The NAFT has significantly increased the GDP rates of the three countries concerned since 1994. Mexico has other reasons for further liberalizing trade with other countries, such as expanding market access for its exports and reducing its dependence on the United States as an export market. By entering into trade agreements with other countries, Mexico seeks to achieve economies of scale in certain economic sectors and to develop its export market. Free trade agreements provide partners with wider access to their goods and services. Countries can benefit from trade agreements because producers are able to reduce their unit costs by producing larger quantities for regional markets, in addition to their own domestic markets. If more units of a good or service can be produced on a larger scale, companies can reduce production costs. The EU has strict legislation on the protection of workers` rights. The EU and Mexico agreed that the new trade agreement should support existing rights, not reduce or water them down.
The current global agreement between Mexico and the EU contains provisions on domestic treatment and market access for goods and services; Public procurement DPI; Investments Financial services Standards telecommunications and information services; Agriculture; Dispute resolution and other provisions. The agreement also contains chapters on cooperation in a number of areas, including mining, energy, transport, tourism, statistics, science and technology and the environment14. The EU agreed to remove tariffs on 82% of imports from Mexico when the agreement came into force and to remove the remaining tariffs until 1 January 2003. Mexico said it was ready to remove tariffs on 47% of imports from the EU after the implementation of the agreement and to remove the remaining tariffs until 1 January 2007. In the areas of agricultural products and fisheries, the signatories agreed to eliminate tariffs at 62% of trade within ten years.15 Tariff negotiations for certain sensitive products, including meat, dairy products, cereals and bananas, have been postponed. Most non-tariff barriers, such as quotas and import/export licences, were removed when the agreement was implemented. With regard to public procurement, Mexico has expressed its readiness to apply provisions similar to those of NAFTA to allow the EU to enter the Mexican market, while the EU has declared itself ready to comply with WTO rules16 on services.16 In the area of services, the agreement goes beyond the WTO`s general trade in services agreement (GATS). 17 After two years of negotiations, Mexico and Israel signed a free trade agreement on 10 April 2000 and implemented it on 1 July 2000. The agreement immediately abolished tariffs on most goods traded at the time of the Mexico-Israel agreement, with the total removal of tariffs until 2005.